Canterbury Farming, January 2019

30,287 copies distributed monthly – to every rural mailbox in Canterbury and the West Coast

January 2019 Edition

INSIDE Wool’s up THIS EDITION Cool cows

p7

Surfer Pacha Light uses a Woolight surfboard designed and made in new Zealand using a new wool composite technology which replaces fibreglass in the board’s manufacture. The new technology, which is being backed

by Landcorp and developed by uS firm Firewire which is co-owned by legendary surfing pro Kelly Slater, has the potential to be used in other manufacturing industries including boats, aircraft and furniture and its manufacturer says it could revive new Zealand’s wool industry.

For the full story go to Page 5.

Farm machinery

p14 Man’s best friend

Westland Milk to benefit from Government PGF loan The Government says it is helping future-proof a critical West Coast industry with a loan of $9.9 million from the Provincial Growth Fund (PGF) to enable a milk segregation project at Westland Milk Products.

p20 Wooly outlook

p33

❚ by Kent Caddick A purpose-designed plant for processing multiple segregated products will be a first for the New Zealand dairy industry, and a boost for the West Coast region, including creating jobs.

The announcement was made by the Regional Economic Development Minister Shane Jones.

“The West Coast community has highlighted dairy as a key industry for their region,’ Jones said.

“With suppliers from Karamea to the glaciers and 430 employees in Hokitika, an investment in New Zealand-owned Westland

Milk Products is an investment in the economy of the whole West Coast.”

The interest-bearing, repayable loan from the PGF will support the development of segregation facilities at the co-operative’s Hokitika site, which will enable Westland Milk Products to collect and process different types of milk products and milk, such as A2 milk and colostrum.

“The objective is to encourage farmers to produce milk that can be turned into much higher value products, delivering higher returns without requiring an increase in herd numbers,” Jones said.

“This level of segregation would pave the way for Westland Milk to grow its business

by processing to higher value products. This is a great example how technology can help drive growth that is both meaningful and sustainable.

“Westland Milk Products has indicated it may explore using the facility to produce nonbovine milk, such as sheep and goat milk or plant-based protein.

“This hi-tech investment will deliver a number of benefits such as upskilling some of the company’s manufacturing staff and attracting new talent to the region.

The West Coast-based dairy co-operative welcomed the investment.

TO PAGE 2

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January 2019

CANTERBURY FARMING

FARMING NEWS

Westland Milk to build new plant Chief Executive Toni Brendish said the $9.9 million Provincial Growth Fund (PGF) loan will be used to help build a $22M plant at Hokitika.

“The plant will allow Westland to separately process (segregate) multiple types of special quality milks into high value products to meet growing global and domestic demand; returning more money to shareholder farmers and the regional economy.”

She said segregated production of speciality milks is a key component of Westland’s five-year strategy.

“Westland needs to reduce its dependency on bulk dairy commodities with their volatile pricing cycles.

“We’ll do this by expanding our capacity to produce high value products, differentiated by the special qualities of the milk used to make them. This will include A2 milk and our new Ten Star Premium Standard milk.

“There is also potential, in later stages of the project, for other segregated products such as grass-fed, pure Jersey, goat or sheep milk, or even plant-based nutrition.”

‘

This is a great best chance to ensure that West Coast dairying remains a viable and sustainable contributor to the region.

Toni Brendish Chief Executive, Westland Milk

Brendish said the Provincial Growth Fund investment allows the company to bring forward development of its segregation capacity; bringing the benefits back to the company, its shareholders and the regional economy far sooner.

The new plant will also allow the co-operative to produce high value segregated product even during the peak milk season.

“Currently, while we can produce some segregated Christchurch Office 03 377 2721 product on the shoulders of the season, at peak our existing plant capacity forces ¡ Rural & Urban Subdivisions

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Prime Minister Jacinda ardern listens to Westland Milk chief executive Toni Brendish explain the company’s plan for a plant for processing multiple segregated products to be built on its Hokitika site.

us to process low value bulk commodities just to get the milk volume through.”

The plant will be operating in time for the 2019-20 season and will create an additional eight to ten jobs at Hokitika, but the benefits to the West Coast economy will go far beyond that Brendish said.

“Westland Milk Products is already a key economic driver of the West Coast economy.

“Dairy generated more than 14.3% ($234.4 million) in gross domestic product in the region in 2016 alone and 9.2% percent of the Golden Bay Dolomite NZ’s most loved magnesium. region’s workforce are directly employed staff.”

Brendish said some specialised staff are likely to be attractcall 0800 436 566 or visit ed to the region by the www.dolomite.co.nz requirements of the

new plant, and Westland’s skills development programme means these skills will be passed on to existing staff and new people coming through, benefitting the West Coast generally.

“Most importantly, this is a great best chance to ensure that West Coast dairying remains a viable and sustainable contributor to the region for generations to come.”

West Coast mining and tourism also got a boost through the PGF, with a $10 million loan to the Ruatapu Garnet Project to mine alluvial garnet which is mainly used as an industrial abrasive, and $87.46 million for tourism ventures including $40m to the TranzAlpine rail link for additional capacity on a new premium service and $25.6m for the redevelopment at Dolomite Point in Punakaiki.

The total PGF package for the West Coast is in excess of $140 million.

FARMING NEWS

CANTERBURY FARMING

January 2019

3

Water storage essential for future

IrrigationNZ says a recent expert discussion document on drought and climate change highlights that future national planning to improve water storage, and the need to look at a range of options to mitigate the effects of the more severe droughts forecast, is urgently required.

❚ by Kent Caddick NIWA projections included in the discussion document indicate that droughts are expected to become more severe in most areas and more frequent and severe in already drought prone regions.

The economic impacts of droughts in New Zealand were estimated at $720 million from 2007 to 2017 in a 2018 report for Treasury, with estimated costs significantly higher for drought than for flood related insurance claims over the same period.

IrrigationNZ chief executive Andrew Curtis said more frequent droughts and more variable rainfall will affect both urban and rural communities and will mean a need to rethink how water is managed in the future.

“For example with less rainfall forecast over summer in western areas of New Zealand, there will be more demand for water storage from both councils and farmers to provide a reliable water supply.

“To adequately prepare for the future New Zealand needs to capture more of its plentiful water from rain and ice melt. Hopefully the issues highlighted in this document will lead to action to avoid our regions being crippled from future droughts.”

Curtis said the document highlights that having been historically ‘water-rich’, New Zealand is not well-prepared to cope with a future that will involve more droughts in many areas.

“The report points out that much of our irrigation in drier areas is on a run-of-river basis, a model extremely vulnerable to drought given environmental obligations.

“New Zealand’s dependence on agricultural exports and urban reservoirs may yet be

Future proof: IrrigationnZ chief executive andrew Curtis says the Central Plains Water scheme is an example of a project which is designed to help mitigate the impacts of future droughts.

‘ a recipe for drought vulnerability. Changing drought risk will have an impact on our society in many ways including on water supply, wastewater, stormwater and primary production among others.”

Curtis said the recent decision by Tasman District Council to proceed with constructing a new dam to supply residents, businesses and growers with water, is the kind of investment that will increasingly be needed in the future.

“The project is critical to avoid severe water restrictions for urban and rural water us-

ers, and also provide for environmental river flow.”

He said the recently completed Central Plains Water scheme is another example of a project which is designed to help mitigate the impacts of future droughts.

“Farmers are already investing in more efficient irrigation systems and New Zealand has very efficient systems operating by world standards.”

new Zealand is not wellprepared to cope with a future that will involve more droughts in many areas.

Andrew Curtis IrrigationNZ Chief Executive

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Reflections on a busy year 123 Sample Road | SAMPLEVILLE | P 01 234 5678 | anywhereford.co.nz

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We’ve been working with the primary sectors to boost the value of what farmers and growers get for their great Kiwi-made products.

The $40 million a year Sustainable Food & Fibre Futures fund is helping to do that by backing projects that move us from volume to value.

We’ve launched extensions services at the Ministry for Primary Industries to help those working the land get the information they need to run their operations sustainably and profitably.

We introduced a manuka honey standard for export to weed out unsustainable cowboy operators and boost incomes. A domestic standard is being considered.

We’ve put $5 million into developing Overseer as an on-farm tool to monitor environmental outputs.

We’re working with industry to try and eradicate Mycoplasma bovis at a projected cost of $886 million over 10 years. The eradication plan shows the Government’s commitment to rural communities.

Spring bulk milk testing is under way and there are positive signs the eradication programme is on-track. For the first time we now have more properties that are back in

business than infected.

We’re working with farmers to improve waterways and accelerate the good work that is already under way around the country. We’re being open and honest with the farming community, alongside other sectors, about the need for climate change action.

We put an extra $9m in the budget for Biosecurity to protect our key industries from pests and disease and introduced a ru-

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ral proofing policy to ensure that the “shiny bums’’ working on policy in Wellington take care to properly consider rural New Zealand when developing initiatives.

We’re fixing the National animal tracing system (NAIT) because its proper use helps us in biosecurity responses to protect the engine room of our economy.

We’re reviewing DIRA – the legislation that established Fonterra and general public con-

sultation on that will start in the next few weeks. We encourage all farmers and Kiwis to have their say.

And we’re committed to pursuing high-value free trade agreements that open markets for our exporters and ensure the benefits of trade flow through to all New Zealanders.

These investments are paying off. The economy is growing and the primary sector is the engine room of that growth.

The Ministry for Primary Industries’ situation outlook released in December forecast a 3.8% increase for export earnings for the year ending June 2019 to $44.3billion.

Thanks to all farmers and growers for their hard work and the honest feedback I’ve received over the past year.

I hope you enjoyed your Christmas and New Year with family and friends.

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FARMING NEWS

CANTERBURY FARMING January 2019

Kiwi ingenuity:

5

The world’s first wool surfboard Kiwi entrepreneur Paul Barron has partnered with The New Zealand Going gobal: Surfboard Merino Company (NZM) to develop a new wool composite technology manufacturer Paul Barron has which could change the global market for New Zealand wool. developed a new wool composite

❚❚by Kent Caddick Barron has partnered with US based Firewire Surfboards, who have designed and manufactured a ‘Woolight’ range of surfboards, to commercialise the technology at scale.

NZM and Barron have developed the wool technology and are investigating other market opportunities for the wool composite.

The technology is a new high value market for New Zealand strong wool, at a time when the industry is struggling with low wool prices and looking for alternative markets.

According to NZM Chief Executive John Brakenridge what Firewire is doing producing wool surfboards is the start of a movement and the tip of the iceberg when it comes to the wool composite technology.

“While the first application of this technology is being used in surfboards, it has the potential to replace fibreglass in many other products such as boats, aircraft and furniture.

“The wool’s natural performance such as tensile strength means that products made with this new technology are lighter and more flexible than traditional fibreglass, while maintaining its strength,” Brakenridge said.

Tauranga based surfboard maker Barron first came up with the idea when he spilt resin on his wool jersey. It gave him the idea to build a surfboard shell out of wool.

Traditional foam boards are typically housed in resin and fiberglass for structural integrity, Barron’s wool technology replaces fibreglass with wool.

“With this technology we can produce a surfboard that has the potential to outperform traditional boards. Basically you grow a sheep, shear it, wash the wool twice in water and make a material that is light, flexible, durable and fast,” Barron said.

Firewire CE Mark Price met with Barron and the Pamu farmers who will supply the wool for the Woolight boards late last year.

Pamu is the brand name for Landcorp.

Price, along with surfing pro Kelly Slater who is a co-owner in Firewire, has a desire to steer the company to zero-landfill by 2020 and they see wool as a component of this process.

“We’re sourcing ZQ wool that is ethically sourced and at the end of its life it will biodegrade and give back to the environment.

“Not only is New Zealand a country with a long and rich surfing tradition the growers that we are sourcing the wool from share our values of doing things in a better way.

Pamu Farms of New Zealand will supply the bulk of the wool fibre that is used in the Woolight surf board.

According to Pamu CE Steven Carden, the partnership with Firewire gives sheep farmers a sense of pride and confidence that the future for wool doesn’t have to be the status quo.

“We hadn’t thought surfing would ever provide the channel to take a positive New Zealand wool story to the world but it makes sense that those that enjoy nature so closely would be those that can solve environmental and performance challenges ,” Carden said.

technology which could replace fibreglass in a wide range of industries.

“This partnership also supports Pamu’s focus on innovation – from sheep and deer milk to wool surfboards, Pamu is at the forefront of positive change in the agriculture sector by adding value to our raw products and to the economy.”

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January 2019

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All rural communities want is certainty

nathan Guy ❚ by Party spokesperson, ❚ National Primary Industries ❚ Happy New Year and I hope everyone has had an enjoyable break and is recharged for another busy year.

2019 will see a few challenges for the primary sector, with many Government working groups and reviews reporting back.

Most farmers and growers I talk to are weary of Government policy changes that could have a negative impact on their business.

The tax working group (TWG) led by Sir Michael Cullen has proposed environmental taxes such as a nitrogen tax and a water tax in its interim report that would seriously sting farmers and growers.

What’s worse is the Governments taxpayer funded farmer Landcorp has submitted to the TWG in favour of these taxes and is not opposed to a Capital Gains Tax. The rest of the Primary Sector submitted in block with a strong submission outlining why these taxes would be detrimental.

It shows how completely out of touch with

‘

restricting cropping on hill country and regulating winter grazing are also on the horizon... it’s no wonder farmer confidence is at an all-time low.

the everyday farmer Landcorp has become.

They’re putting themselves up on a pedestal and inferring every other farmer should pay environmental taxes.

Farmers and growers nationwide have been working incredibly hard to improve their farming practices to reduce environmental impacts without government intervention and more taxes. What really grates farmers

is Landcorp has the backing of the Governments chequebook and struggles to pay a dividend to the Crown despite its assets being worth over $1.5billion.

Also interesting about the submission is that it was a month late, and it wasn’t listed on the TWG website until the news of it broke. The whole thing reeks of Government trying to strong-arm taxes onto the primary sector to fund its careless spending elsewhere.

Restricting cropping on hill country and regulating winter grazing are also on the horizon as Environment Minister David Parker has directed his officials to clean up waterways, which could be in place by 2020.

It’s no wonder farmer confidence is at an all-time low and all rural communities want is certainty.

South Island Rural Team

Absent; Rodger Letham, Jude Livingstone, Michael Robb

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January 2019

7

Dwarf cattle breeds make cool cows Dwarf cattle breeds are better adapted to high temperatures according to newly published research.

❚ by Kent Caddick The research undertaken by an international team, including researchers from the University of Western Australia (UWA), is aimed at helping to develop climate-ready cattle.

The study showed for the first time that dwarf breeds of cattle use different heat tolerance mechanisms than standard cattle breeds, making them better adapted to hotter climates.

Dr Muhammed Elayadeth-Meethal from Kerala Veterinary and Animal Sciences University in India, who led the study, said standard cattle breeds acclimatise to the warm environment through physiological, biochemical and molecular changes while the dwarf breeds have adapted through changes in their genes.

“Standard size cattle breeds can acclimatise in the short term to higher temperatures but reach their tolerance limit under prevailing tropical conditions, while the dwarf breeds are genetically adapted to the warmer climate,” Dr Elayadeth-Meethal said.

Professor Shane Maloney, from UWA’s School of Human Sciences and Institute of Agriculture, said the study highlights the importance of these locally adapted breeds as a reservoir of genetic variation, which can be used as candidate breeds to develop climate-ready cattle.

“There is an increasing trend of importing international breeds rather than relying on domestic breeds which may be smaller in size but are better suited to a tropical climate for example,” Professor Maloney said.

“Tolerant breeds are preferred as it requires minimum diet and management modifications and thus causes less welfare and environmental issues compared to high yielding commercial breeds.”

Professor Maloney said the research will open up new ways in assessing heat stress tolerance and breeding for sustainable livestock production especially under changing climate.

The paper, Size does matter: Parallel evolution of adaptive thermal tolerance and body size facilitates adaptation to climate change in domestic cattle was published in the journal Ecology and Evolution.

The research formed part of Dr ElayadethMeethal’s PhD studies and was supported

by Crawford Funding Australia, and Rothamsted International Fellowship.

The collaborating institutions Kerala Veterinary and Animal Sciences University, University of Bristol, UWA and Rothamsted Research are all members of the Global Farm Platform initiative that attracts researchers from different communities and disciplines seeking to develop sustainable ruminant production globally.

Smaller is cooler: Vechur is the smallest breed of cattle averaging 50-130kg and 61-90cm respectively.

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January 2019

andrew Wyllie ❚ with Forsyth Barr ❚

RURAL PROFESSIONALS

Economic tensions moved off the boil

Expectations for global economic growth peaked in March 2018 and have since been impacted by the potential impacts of trade wars, Brexit, rising interest rates and geopolitical tensions. That said, growth remains near recent highs.

Importantly labour market growth continues to be positive, which should continue to support consumption. In addition, the more dovish commentary by the United States Federal Reserve should ease interest rate pressures and keep monetary conditions, for most of the developed world, stimulatory.

Expected GDP growth remains lower for 2019 versus 2018, but still short of indicating a pending recession. Apart from some slowing in manufacturing growth outside the United States, none of the recession indicators that we monitor are flashing red at the moment.

Looking at off-farm investments?

Equity market contemplate risk return

When you are thinking about your investment options, talk portfolio management specific to your investing needs, talk to Investment Adviser Andrew Wyllie in confidence on (03) 365 4244 or email andrew.wyllie@forsythbarr.co.nz 0800 367 227 forsythbarr.co.nz Disclosure Statements for Forsyth Barr Authorised Financial Advisers are available on request and free of charge.

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to Forsyth Barr. To get personalised investment advice and

Equity markets are said to climb the wall of worry and certainly in the last 3 months to 30 November there seemed to be no shortage of walls to climb.

No market escaped negative returns in the quarter although the signalling of at least a pause in the escalation of the United States/ China trade war helped equity markets recover in November.

Trade issues, Chinese growth, interest rates and political concerns remain high on the list of investor concerns. An easing in two of these has helped sentiment but it is actually a positive that investors remain concerned. Complacency is the issue that has the greatest potential to disrupt markets.

The correction however was a reminder of the benefit of diversification by thematic, with Defensive sectors performing better during the sell-off versus Growth and Cyclical sectors. After being stretched, it has also helped restore valuation support to the market.

In terms of the various equity markets, New Zealand’s defensive bias (52% of market capitalisation) helped its relative performance. After currency movements are included, United States and Japanese markets followed, given small recoveries during November. Australian and European markets were the laggards.

Australia was hurt by a large sell-off in growth exposures during the September/October period while November was impacted

by weaker oil prices and a weaker building sector. European markets were impacted to a greater degree by the weak Euro and were also hurt in November by weaker consumer and energy sectors.

Interest rates: A flurry of activity Normally we would expect the risk-off correction we saw in global equity markets, to see longer–term interest rates fall.

However, for most of the quarter, the strength of the United States economy and the United States Federal Reserve stance on monetary policy resulted in the United States Government 10 year bond rates increasing to a high of 3.24%, (being over the 3.00% level for most of the last three months).

As longer-term New Zealand interest rates tend to follow United States rates, New Zealand Government 10 year interest rates also rose (albeit by only +27 basis points at their peak). Still, this led to negative returns for most of the period, although these were then reversed as the United States Federal Reserve outlined a more dovish outlook in November, with New Zealand Government 10 year bonds largely unchanged by the end of November 2018.

New Zealand corporate interest rates meanwhile were impacted by a step up in new issuance, culminating in the large Chorus issue in November.

Selling in the secondary market subdued returns in the last month. With no new issuance expected before the end of March 2019, secondary markets are now expected to stabilise, although the Reserve Bank of New Zealand’s final proposal on bank capital requirements (due mid-December 2018) will be watched.

New Zealand Bank issuance has been largely absent during the last year, but the Reserve Bank proposal should provide signals as to the ability of the banks to issue loss-absorbing or subordinated debt and has the potential to dramatically increase issuance again next year.

This update covers the three months ended 30 november 2018.

If you’re new to investing please see Forsyth Barr’s Introduction to Investing guide available at www.forsythbarr.co.nz/investing-with-us/new-to-investing or to discuss your investment options please contact andrew Wyllie, an authorised Financial adviser with Forsyth Barr in Christchurch. He can be contacted regarding portfolio management, fixed interest, or share investments on 0800 367 227 or andrew.wyllie@forsythbarr.co.nz.

This column is general in nature and should not be regarded as personalised investment advice. Disclosure Statements are available for Forsyth Barr authorised Financial advisers on request and free of charge.

CANTERBURY FARMING

RURAL PROFESSIONALS

Bessie Paterson LLB ❚ with Ronald ❚ W Angland & Son That is so in limited circumstances and set out below are the scenarios which arise when someone dies without leaving a valid Will or a Will which could be validated by the High Court.

Where a deceased person has a surviving spouse or partner, but has no parents, children or grandchildren the surviving spouse inherits the whole of the residue of the estate. If the deceased person has no spouse or partner but has a child or children, the residue is divided equally among the children. An only child will inherit the whole of the residue.

The above paragraph sets out what many people wish to happen but the ensuing paragraphs raise many issues which most of us would prefer to avoid.

If a deceased person has a spouse or partner and children, the spouse or partner receives all of the family chattels, $155,000 and one third of the remaining residue (if any). The children receive the remaining two thirds of the residue.

January 2019

Intestate estates Many people believe that if they die without leaving a valid Will, their spouse or partner will inherit all of their estate.

Where a spouse or partner and parents survive but the deceased has no children, the spouse or partner receives the family chattels, $155,000, plus two thirds of any remaining residue and the parents receive a one third share of the remaining residue.

If there is no surviving spouse, and no children but the deceased’s parents survive, the parents inherit the estate.

If there is no spouse or partner, no parents or children surviving, the deceased person’s brothers and sisters inherit the residue equally, but if any of them have died their children inherit their deceased parent’s share.

The remaining categories of people who may inherit in an intestacy are surviving grandparents or uncles and aunts. When this scenario arises half of the estate goes to the family of the deceased’s mother and the other half goes to the deceased’s father’s family.

If there are no surviving relatives, the residue of the estate goes to the State and anyone who may have expected to

‘

Making a Will is essential to avoid these scenarios.

have been included in the deceased’s Will may apply to the Government for a pay-out but I would not hold your breath on getting any pay out from that source.

The above rules are included in the Administration Act which imposes an obligation on the estate’s administrator to distribute the residue of the estate in accordance with the above paragraphs.

Making a Will is essential to avoid any of those scenarios arising.

This article has been prepared by Bessie Paterson, a Partner at ronald W angland & Son, Solicitors, 2 Chapman Street, Leeston.

Ronald W. Angland & Son LAWYERS

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January 2019

CANTERBURY FARMING

FARMING NEWS

Gareth Hughes ❚ with ❚ Green Party Spokesperson for Primary Industries

Country of Origin food labelling Many people care about where their food comes, and for various reasons: • to support local producers • for environmental reasons like food miles • or maybe to avoid genetically engineered organisms, pesticides or antibiotics.

Maybe they are ethical consumers and wanting to avoid food from countries with poor working or animal welfare conditions. Maybe they just want to know.

No matter the reason, Kiwis should be able to find out where their food comes from – but you can’t have a choice if you don’t have the information.

That’s all about to change. My members’ bill, which unanimously passed its final reading last month will establish countr y of origin food labelling on our law books.

This happened with the suppor t of many food industr y organisations. In particular I would like to thank Hor ticulture NZ and NZ Pork for their advocacy.

Already 55 other countries have countr y of origin labelling including the US, UK and Canada. Australia has a comprehen-

sive regime, where labels show the percentage of Australian products in each food item.

Here, this new act will require labelling on single ingredient foods that are fresh, frozen and unprocessed or minimally processed, for example cut, filleted, or minced.

While debating where the line should be drawn for foods included and excluded, the biggest question was would Parliament ‘bring home the bacon’ and include it.

The over whelming majority of our ham and bacon comes from impor ted meat and 95% of that comes from countries with lower animal welfare standards. I’m glad we managed to get bacon and cured pork products included.

While this law doesn’t cover all foods it does act as a flexible first-step, a foundation for which fur ther foods can be added later on through regulations.

Countr y of origin food labelling is great for Kiwi producers. We’ve got some of the best food in the world and a great stor y – why on ear th would we want to hide that away?

❚ with rob Cope-Williams

What’s your hourly rate?

With the country suffering from more strikes than a sub-tropical storm, no-one is putting the spotlight onto those who own businesses that keep the economy going so others can enjoy their lives.

I think it is fair to suggest that for most business owners, cash flow has a serious prostate problem, despite it being Christmas time.

Retailers are reporting very little increase in sales and one of the most used comments by the general public is that it doesn’t feel like Christmas and there seems to be very little atmosphere suggesting we are days away from the festival.

So while we acknowledge that those with a movable income are suffering, let’s take a look at those of you who are at the mercy of fixed returns and outgoings.

Instead of watching the rubbish on TV, take some time out to go back over the past few annual returns and note what you were able to call your own, as in personal taxable income and then work out how many hours you worked to get that.

Now work out the hours worked by employees; In some cases morning teas and lunches are included so they get paid for not working, others do show lunch as down time on the time sheets, so that’s an induvial number. But then there are holidays; four

weeks of them, plus statuary holidays where employees either have off or get paid extra for. Add them up, there’s a raft of them including those that fall on weekends and now are taken on the following Monday.

With that in mind, how many days do employees actually work for their agreed hourly rate.

Here’s the hard bit. Add up the hours per week that you work, plus the hours your partner works. Adjust to take in the holidays you don’t have and the stat holidays you work at double the hours, plus weekends at double hours to get an annual number. With the extra bonus payments it is well over the 40 hour week.

Now get a weekly figure. Yup, swallowing hard aren’t you. Now divide that by your weekly taxable income you can call your own.

So who are you working for?

Is it the Government and your employees, or you and your partner? May I remind you that the minimum hourly rate for New Zealand is $16.50 an hour.

We won’t talk about the CEOs who are paid more than $2m a year will we.

FARMING NEWS

CANTERBURY FARMING

January 2019

11

Climate change challenges bring opportunities too Our response to climate change is a hot topic and all sectors are being asked to think about how they respond and what they can do.

Steve Lowndes ❚ by ❚ Environment Canterbury Chair Although the farming sector is excluded from our current emission obligations, our council’s view is the sector should get involved earlier through voluntary and incremental actions, rather than waiting for a more rapid and regulated entry in the future.

While central government is looking mainly at mitigation, local government and communities are more concerned with adaptation.

How do we better understand and deal with, at a local level, the likely effects of climate change, many of which we are already seeing?

There are lots of things farmers can do and my advice is to get started now, such as planting trees or diversifying crops, which will help reduce emissions as well as build resilience.

The recent announcements around the One Billion Trees programme are a great opportunity for farmers to get some help and funding to plant trees. To me it’s a no-brainer – the Government is providing a subsidy for land-owners who will receive short and long-term benefits, as well as helping to offset the farming sector’s climate change gas emissions.

The benefits will depend on a farm’s location, type and so on, but for a start planting trees can help improve land productivity, reduce erosion and sediment run-off, enhance the development potential of land, provide habitat for native species and bees, as well as improve landscapes. In addition, tree planting could help a farmer develop new sources of income such as timber, honey, carbon credits, or even eco-tourism and new jobs.

The simplest way to access the programme is via direct landowner grants which can be applied for at any time. The Government is looking to get 60 million new trees planted (two-thirds of them natives) over the next three years and has set aside $118 million to do this.

The most generous grants are for planting native trees and shrubs (up to $4000 per ha) plus additional money is available for erosion-prone land or fencing (another $500/ha each), or for ecological restoration partnership projects (up to another $2000/ha).

Some farmers – perhaps those with intensive operations on the Canterbury Plains – might thing there’s little in the programme for them. But I would encourage them, however, to think about buffer lines, planting in the corners or under irrigators, as well as taking an incremental approach to how they can begin to address climate change issues.

There’s even money, for instance, for exotic planting – eucalypts, redwood or even pinus radiata – particularly when used to stabilise erosion-prone land.

What’s really encouraging here is the Government has a simple goal to plant more trees and has made money available in a flexible way to make it as easy for farmers to get support.

Another opportunity I’d like to mention comes from law changes around hemp. It’s now legal to sell hemp seed as a human food (previously only hemp oil could be sold and the seeds were used for animal feed). Hundreds of hectares of new hemp crops have sprung up around the country this season and more contracts are expected next season and beyond.

While just one example, it’s one more thing that innovative farmers can take advantage of and add diversity to their operation.

‘

The Government has a simple goal to plant more trees.

Branching out: Hemp could add diversity to a farming operation according to ECan chair Steve Lowndes.

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January 2019 CANTERBURY FARMING

Course caters to greater demand for organic food Talk to us today about your farms soil fertility.

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The total size of the New Zealand organic sector in 2017 was estimated at $600 million, up 30% or $139 million since 2015, according to the latest market report from Organics Aotearoa New Zealand.

The domestic organic market has been growing twice as quickly as the conventional sector and close to 80% of New Zealanders purchase organic products at least fortnightly.

Lincoln University is catering to this growth with its Diploma in Organic Agri-Food Production, taught through the Biological Husbandry Unit (BHU).

It is a 120-credit, level 5 diploma for students with or without university entrance.

Programme coordinator Bill Martin says graduates of the diploma will be able to seek employment in organic primary production or other sectors related to organics, particularly education and hospitality.

The course will also appeal to those who want to develop their un-

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FARMING NEWS

January 2019

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January 2019

CANTERBURY FARMING

Getting the best job done With a workplace that is as varied as the geography – and that means, in New Zealand, extremely varied – it’s always a case of the right machine for the right job when earthmoving.

❚ by William Milnes Consequently, a contractor needs various types of earthmoving equipment from time to time. And if you are simply a landowner wanting earthmoving done, it pays to have a little background information.

Machinery can open a huge capital investment window, but the smart operator today has hiring in mind, because there are obviously different types of machinery for different tasks – moving materials including rock, concrete, asphalt, clay, loam – this list goes on.

Projects need to be efficiently carried out in specific contract times and that of course involves earthmovers and other related heavy equipment.

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Forget great capital investment, which also includes protection, maintenance and insurance. That’s the role of the hirer.

Experienced industry operators well know if you are a contractor then you’ll need to hire different types of earthmoving equipment from time to time.

Forget great capital investment, which also includes protection, maintenance and insurance.

That’s the role of the hirer.

It does not make sense to buy the gear when your requirements might change from time to time.

Besides, the company that owns the equipment will take care of their maintenance and upkeep.

In addition, the company will have professional operators to handle the equipment, if you don’t simply dry hire and have you own operators.

Deal with a company that has the equipment that you require and can offer you tandem tippers, semi tippers, excavators, backhoes, bulldozers, graders, wheel loaders, dump trucks etc.

Heavy-duty kit designed to do hard work in tough environments.

CHOOSE A SOLUTION. CHOOSE SUMO.

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CANTERBURY FARMING

The hire marketplace

January 2019

15

What you should look for

FROM PAGE 14 It is no secret that requirements can change as a project develops, so going in well prepared can avoid the necessity of changes in plans leading to changes in contractors. A firm with a wide range of machinery is better than a lone operator who may mean days of delay with the required machinery tied up in jobs elsewhere.

Preparation is a guardian of time and should ensure that you will always get the equipment you require in order to complete different stages of your project.

Is the equipment in good condition?

Big country: Earthmoving equipment in action stripping topsoil for the Central Plains Water Ltd’s irrigation canal in Canterbury.

If you hire well-maintained equipment then you can be sure that your work gets completed on time. You won’t have to worry about lost opportunities caused due to downtime.

Will the company help with the disposal of debris?

Your construction and demolition activities will result in a great deal of debris which you are required to dispose of in a safe manner.

Be sure to check if the company that hires out equipment for earthmoving will do this for you. This will save you a great deal of effort.

Does the company pay sufficient attention to safety?

Always deal with a company that follows industry safety standards. The equipment you hire should come with completed maintenance log books.

They should also have well-maintained brakes, headlights and horns.

And finally, cost effectiveness is a nobrainer so ensure the company you choose is affordable, with nothing hidden in the small print.

You’ll obviously want to keep your costs down in order to maintain profitability. However, you should not compromise on quality just to get a good discount.

Good hiring should result in good work being done on time and within budget.

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January 2019

CANTERBURY FARMING

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Whether you want to mow, dig out stubborn plants and roots, load gravel or lift firewood, the super capable John Deere 1023E sub-compact tractor lets you switch tools or attachments easily and quickly, even without leaving your seat. Plus, combine perfect stability and ride comfort with easy parking and storage and you have the ultimate solution for your place.

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John Deere has been an innovator in farm machinery for nearly two centuries. But for the past 100 years, it is their tractors that have revolutionised agricultural productivity around the world.

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the budget-friendly John Deere 3038E. Available on all 1 and 2 Family compact utility tractors, the John Deere AutoConnect™ mowing deck attaches without needing to leave the seat. The deck and driveshaft automatically connects when driven over. The mowing height can be set by changing the gauge wheels on the deck and once they are set there is no requirement to adjust them again.

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CANTERBURY FARMING

January 2019

17

A story of Kiwi innovation and invention Lindsay’s Precision VrI system

One summer’s evening in late 2004, two Massey University engineering graduates, Stu Bradbury and George Ricketts, were sitting around, chewing the fat.

❚ Article supplied by Lindsay NZ

They were staying on the South Wairarapa farm of Brian and Jo Bosch, living on site while they worked a summer job assembling irrigators in the area.

Over a cuppa, Stu, George and Brian talked about irrigation, and some of the challenges on the Bosch’s farm – the existing pivot system was causing problems.

“Where the pivot went over the races was wet and mucky, and when the cows walked along it to get to the cow shed it damaged the race,” Brian said.

“We were also getting a number of lame cows, who got wet feet and bruising on the muddy race.”

Blanket irrigation was identified as the problem and the solution was in finding a way of irrigating parts of the farm that needed it, but keeping vulnerable areas such as the race dry.

At the time there was nothing on the market that could deliver precision irrigation, managing the water flow in targeted and controlled quantities, to specific parts of a paddock or farm depending on topography and soil type.

So Stu and George, both with mechanical engineering backgrounds, set out to find a solution.

“When we went out on the farm we saw wet areas where crops weren’t growing, and dry areas where there wasn’t much water.

“So there was an obvious need to have

a system to specify where you needed water and how much,” Stu said.

In 2006 and 2007 they began developing the programming and prototype that would become the Precision VRI. VRI stands for variable rate irrigation, ensuring exactly the right amount of water or nutrients are delivered over multiple crops, soil types and terrains.

It would involve GPS technology, farm mapping and innovation that would revolutionise the irrigation industry.

The Bosch farm at Kahutara became the very first farm in the world to install the Precision VRI system, in November 2008.

“It’s still going strong today,” Brian says.

He currently milks 1000 cows on the farm, achieving around 400,000 kilograms of milk solids annually over the 320-hectare milking platform.

He says that the Precision VRI helps him farm more productively and ensures he isn’t wasting water – a precious resource.

The muddy areas around troughs and races are also no longer a problem, and he no longer has the problem with lame cows he once did.

Land is more productive, and areas that were previously muddy can now be used for growing grass or crops. Places where tractors and heavy farm vehicles

Leader: Brian Bosch’s Wairarapa dairy farm was the very first farm in the world to install the Precision VrI system.

used to get stuck, have been dried out and are traversable.

Over the past decade Prevision VRI has enabled New Zealand’s farmers, food producers and agricultural contractors to achieve better results, driving efficiencies and saving money – to the benefit of agribusiness, not only for dairying, but in sheep, beef, horticulture and arable farming.

The system has also been used in Australia and the USA, attracting the attention of agribusiness leader Lindsay Corporation.

The global company acquired the Precision VRI in 2011, attracted by the success and potential of the system.

To find out more about Lindsay nZ’s Precision VrI system call 0800 438 627 or visit lindsay.com.

18

January 2019

CANTERBURY FARMING

Dal-Bo – where originality matters Celebrating 70 years since the company was formed, Dal-Bo, the Danish farm machinery manufacturer, has gone from strength to strength. supplied by ❚ Article ❚ Chochranes of Canterbury Specialising in hydraulic folding Cambridge rollers Dal-Bo has, in recent years, seen its turnover and growth reach new heights. It’s quite pleasing that the anniversary year of 2018 will see turnover at an all-time high. Exporting to more than 40 countries Dal-Bo has established itself as Europe’s largest producer of hydraulic folding rollers.

When Mr Henry Pedersen started the company in 1948 his main priority was to supply the local farmers with their various requirements. Working from a relatively small site in the village

of Randbol in the region of Denmark called Jutland, Mr Pedersen’s drive and willingness to accommodate the wishes of the local community soon lead to him expanding his business to other parts of Denmark.

With his son Kaj Pedersen joining the company in 1968 their expansion increased dramatically. The German market was soon added to the Danish one and the company continued to grow. The rest as they say is ‘history’.

Kaj Pedersen is still actively involved in the company and recently celebrated his 50th year in the business.

Today approximately 85% of what the company producers is exported with

the UK being the biggest market.

Since Dal-Bo UK was formed in 2010 the growth has been staggering. It’s very pleasing that, in such a competitive market, Dal-Bo UK’s market share has grown year on year. The most popular product sold in the UK by Dal-Bo is the 12.3m Power Roll, closely followed by the 6.3 and 8.3m Maxiroll.

The Maxiroll is commonly known as a ‘system’ roll as many attachments can be mounted to this frame enabling the machine to suit multiple applications.

The most popular attachments are the hydraulically adjustable cracker boards and seeder units. One massive advantage of the Maxiroll is that the brack-

A MODERN SOLUTION FOR THE PROGRESSIVE FARMER PowerRoll • • • • • • • • • •

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ets necessary to take an attachment are always included in the ‘base’ machine, so it’s simple to add on an attachment.

In the last 10 years Dal-Bo has established itself as a major force in the seedbed cultivation market with its ‘flagship’ model the Rollomaximum - a premium product in the precision seedbed category- leading the way. Available in working widths from 6.2, 7.5, 9.3 and 12.4m its popularity has seen it exported all over the world.

Dal-Bo has always been an innovative company as time after time it has launched market changing products. Dal-Bo takes great pride in being at the forefront of technology and the introduction a few years ago of the snowflake Cambridge ring was a typical example of this. Offering the world market a 6 year guarantee on a Cambridge ring was unprecedented but the new snowflake design hasn’t disappointed.

It’s with great excitement that Dal-Bo has entered into partnership with Cochrane’s and Giltraps to enable the company to cover the whole of New Zealand.

Both companies are familiar with the Dal-Bo product and very well respected in the New Zealand market.

Their expertise and commitment will enable the Dal-Bo product to be seen across the country. Cochrane’s and Giltraps work very closely with their customers to source the very best products available and Dal-Bo is very proud and delighted by this arrangement.

Supported by the uK arm of Dal-Bo the prospect of supplying new Zealand farmers with top quality products is extremely exciting.

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Dal-Bo has entered into partnership with Cochrane’s and Giltraps to enable the company to cover the whole of new Zealand.

CANTERBURY FARMING

January 2019

19

Tips for caring for your pet lamb Many people who live in the country are tempted to get a woolly friends for their children to show off at pet day or to use as a grass cutter for their lifestyle block or section.

❚ by Kent Caddick As with all animal ownership taking on a pet lamb needs to be undertaken with knowledge and the appropriate resources.

Livestock expert Dr Clive Dalton advises prospective pet lamb owners to ask the farmer if the lamb received colostrum from the mother sheep, or another source, before being orphaned.

“This first milk from the mother protects the young animal against the many infections it will meet in its early life,” Dr Dalton said.

“If you cannot get a satisfactory answer to the question, then don’t have it, as you’ll have problems rearing it, and it will stand a high chance of being unthrifty or of dying.”

Lambs will need tailing and possibly castrating. They will also require vaccinating.

Some farmer will perform tasks such as these before hand over, but the chances are you will need to factor in a trip to the vet on occasion.

To get ready for your lamb you will need some supplies including a suitable fenced area with a place where young lambs can keep

Cute but needy: as adorable as they are owning a pet lamb takes a lot of work.

warm and dry in cold weather. They will also need milk powder, bottles and teats.

When making the milk solution be careful it’s not too strong as this can cause upset tummies and scouring, which is like lamb diarrhoea. Don’t over fed lambs as this too can lead to digestion problems.

When preparing the bottle be conservative when you cut the end of the teat off, because if you make the hole too big the lamb will get too much milk too quickly, which again can lead to sore tummies and scouring.

If your aim is to raise your lamb as a pet then Dr Dalton said feeding time is the best time to bond with your lamb.

“Use the bottle as way to teach the lamb

or kid to follow you. Remember it is building up an association of your voice with food, so calling it at feed time is vital to bonding,” Dr Dalton said.

Pellets can be introduced into your lambs diet at about three to four weeks and you can encourage your lamb to eat these out of

your hand, which is a trick that can be useful when teaching them to lead for pet day.

“You can never do enough training. Set up a ring at home and have a test run regularly.

Take your time in training. Learn one thing at a time. Reward it after a success with some feed pellets.”

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January 2019

CANTERBURY FARMING

Looking after man’s best friend One of the big reasons people choose to have a lifestyle block is so they can have lots of animals and more often than not a dog or two finds its way into the menagerie.

❚ by Kent Caddick The Animal Welfare Act has a special section on the welfare of dogs which sets a minimum standard for looking after canine companions whether they be working dogs or house pets.

Dogs must be given good shelter that can be easily access. It must include a dry and sheltered place to sleep which is big enough for the size of the dog so they can move around comfortably. An area must be available for them to defecate and urinate away from where they sleep.

Daily exercise is important for dogs. The code recommends a minimum of 60 minutes of time spent out of kennels or off leads where dogs can stretch their legs and explore the world around them. Note this is a minimum and some breeds will require much more exercise.

The animal code of welfare for dogs sets out guidelines for the weight and condition of dogs. Dogs should not be emaciated or thin, but neither should they be overweight.

A dog is too thin when its ribs can be seen or felt easily and they show signs of malnutrition such as poor coat condition and lack of energy.

Do not give your dog any cooked bones.

Large raw bones are less problematic. Special consideration should be given to working and pregnant or lactating dogs as they often require extra food and nutrition.

Best friends: Dogs are a popular companion for many lifestyle block owners, but must be kept at a standard of care which ensures the animal is happy and thriving.

The use of electric collars is discussed in the code, stipulating that they must not be used in any way that causes unnecessary pain. Electric collar should not be used on dogs with nervous dispositions or as a way of controlling barking.

Retired veterinarian Dr Marjorie Orr does not recommend using electric collars unless it is a last resort.

“My opinion is that the use of electric shock collars goes against the best dog train-

ing techniques, all of which are based on reward and not punishment. However there may be an argument for their minimal and strategic use in tough and robust dogs that are on ‘death row’ for behavioural problems such as attacking stock,” Dr Orr said.

While tail docking is not completely banned, the code states that docking should only be carried out when a dog’s tail has been damaged and should only be done by a vet.

“As a vet I believe that tail docking shouldn’t be carried out for several main reasons: the tail is a necessary signalling device for dogs helping to indicate pleasure, fear, and aggression, the tail is used to help the dog balance, especially running downhill, tail docking may lead to phantom pains in some dogs,” Dr Orr said.

Go to www.biosecurity.govt.nz/animal-welfare/codes/ dogs for more information on the code of welfare for dogs.

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January 2019

21

The benefits of walnuts on the block

Trees are an essential part of any lifestyle block and the benefits extend beyond our lifetimes and benefit to the lives of our descendants.

❚ by Trudi Meyer Trees have been grown on lifestyle blocks for a number of reasons including food production, shelter, shade, erosion prevention, aesthetic appeal or just for firewood.

Trees help improve water quality, provide shade, stabilise eroding slopes, filtering sediments and nutrients from runoff, provide a financial return for nut crops or timber.

The secret to successful results is to match the tree to the purpose and the locality and there is a lot of information out there to help you get the best outcome.

Becoming a walnut orchardist after more than 20 years of dairy farming has had its benefits but also its challenges. Walnut trees are dual purpose trees grown for food and also for timber and very long living, more than 100 years.

In commercial orchards walnut trees are grown 7 to 10 metres apart and some trees have been planted in hedge rows.

It is essential to protect the young trees from rabbits and stock nibbling away as sheep and cows, especially calves, will

happily munch on a tree sapling and kill it.

Shelter from strong winds will help the trees to grow strong and straight as whippy branches can break or twist in strong winds.

Shaping and pruning is an essential task in the younger years to set up a good frame and encourage growth. I am told that this can also be therapeutic.

Growing walnut trees for crop or timber production makes financial sense as the development costs for walnut orchards are reasonably high at the start and returns from crop (or timber) is slow in coming for a number of years.

From the age of about six years old, the trees will start to produce walnuts, a handful at first but up to 2 tonnes per ha (approx.

10kg/tree).

There are a large number of 10 acre blocks suitable for a walnut orchard. Planting walnut trees and harvesting the grass in between the rows for hay or silage will mean that you don’t have to look after animals and in 15-20 years will provide a retirement income.

It is quite feasible to establish a walnut orchard in the country while working in the city and doing the orchard work over the weekend,

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which would generally involve pruning (winter) and watering (summer).

Once the orchard is coming into commercial production it could be a very profitable enterprise that still leaves enough time to do all the things you could not do during the busy working life.

There is scope for large plantations of walnuts. The operation can be completely mechanised and as such lends itself to large-scale production. With crop yields increasing over the coming years, financial vi-

ability is expected to improve year by year.

Demand for walnuts is growing. Just under 800t of walnut kernel (2000t of walnuts in shell) were imported in 2015, up from about 500t a few years previously.

But the taste of fresh, New Zealand grown, walnuts are superior to the imported ones, and remember walnuts are considered a very healthy food.

For further information: www.walnuts.org.nz and www. walnutsplease.nz.

22

January 2019

CANTERBURY FARMING

FORESTRY

Tree fund offers new opportunities The launch of the One Billion Trees Fund is a crucial step toward achieving the goal of planting at least one billion trees by 2028 according to Forestry Minister Shane Jones.

❚ by Kent Caddick Jones along with Agriculture Minister Damien O’Connor launched the One Billion Trees Fund late last year and the fund, led by Te Uru Rakau – Forestry New Zealand, provides $118 million for simple and accessible grants to landowners and organisations looking to plant trees.

It also provides $120 million for partnership projects that aim to reduce the barriers to tree planting through innovation, research and sector development initiatives.

It brings the total for the One Billion Trees Programme, funded from the Provincial Growth Fund, to $480 million, with other initiatives including joint ventures between landowners and Crown Forestry to plant commercial forestry, and the community planting programme Matariki Tu Rakau.

“The One Billion Trees Programme sets an ambitious target, but brings with it the huge opportunity to revitalise our regions and create real economic, social and environmental benefits across the country. It will also support Maori to realise the potential of their land,” Jones said.

“The Government is committed to achieving these benefits for New Zealanders who have already shown an impressive amount of interest and goodwill in the programme. This year we exceeded the planting goal, with over 60 million trees planted.

“The new Fund will build on this early momentum by supporting planting to reduce erosion, improve water quality, achieve regional development goals, enhance biodiver-

Tree planters: Forestry Minister Shane Jones, head of Te uru rakau – Forestry new Zealand Julie Collins and MPI Director General ray Smith following the launch of the One Billion Trees Fund at Warrick and CeCe James’ Flagpole farm in Canterbury’s Malvern Hills.

sity, develop Maori-owned land and diversify productive land use.

“Officials will monitor the rollout of the new grant scheme to ensure our focus remains on putting the right tree in the right place for the right purpose,” Jones said.

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“We recognise the significant contribution they make to the wellbeing of New Zealand and our economy,” O’Connor said.

“The key to any sustainable business is

diversification and I encourage those interested to take up these grants that reflect our ambition to work in partnership with farmers to get more from what they do.” applications to the new Fund are now open through Te uru rakau and can be submitted all year round.

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CANTERBURY FARMING

FORESTRY

January 2019

23

Year winds up on a positive note

allan Laurie MnZIF ❚ with ❚ Laurie Forestry Ltd

Over the last month the strengthening Kiwi dollar against the Green Back has kept export prices largely unchanged despite small CFR price increases and reduced shipping costs.

A quick review of our domestic scene finds a reasonably stable market in terms of price and demand. Log supply in Canterbury has eased off as logging crews face hard times trying to harvest in some of the wettest November conditions seen for many years.

Around the rest of New Zealand most sawmill owners are quite happy to ambivalent with ample log supply at stable prices and timber sales prices also flat.

In Christchurch there are reports of some of the larger sawmills discounting lumber to move volume. This is a worrying sign.

There is no question, the volume heat generated by a Christchurch earthquake rebuild has dwindled to a mere flicker. We can look to the business precinct construction sector architects and their continuing love affair with the steel, concrete and glass monstrosities that now pervade the streetscape to thanks for this.

The China market rounded out the year on a pretty positive note. Inventory across the eastern seaboard sits at around 2.6 million cubic metres of logs representing about a month’s supply. This sort of level would have trigged a buying panic in previous years.

The lack of panic buying I think reflects a China faith in the continuing and consistently re-

Despite a mix of market conditions last year wound up with an overall positive tone.

liable log supply from New Zealand. This can only be good long term.

Daily consumption is chugging along at 80,000 cubic metres, somewhat ahead of the same time last year and the reason why the inventory has been falling. Log supply out of the US has virtually dried up while the US and China leaders continue their tariff spat.

This has left New Zealand as the dominant player in the supply stakes, currently running at around 65% to 68% of all fibre supply to the eastern seaboard. New Zealand is certainly no minnow in this market.

Shipping rates have eased as volumes in the northern hemisphere slow with the onset of winter. There is currently a plethora of Handy class vessels opening on New Zealand leaving charterers to pick and choose and charter rate negotiations swing very much to our favour. I see rates continuing to decline at least until after Chinese New Year being early February.

To start the year here are a couple of thoughts.

If you are involved in Forest Industry at any level you should be registered on SAFETREE. This is a safety support mechanism that has quickly become a leader in disseminating important messaging and tools to support forestry practitioners, including forest owners.

Go to www.safetree.co.nz to register. Here you will find everything you ever needed to know about how to ensure everyone stays

safe, including you, when you are involved in or engaging people, companies and or staff to do forestry work.

The NZ Farm Forestry Association is in the process of a restructure with a focus on being the voice for all small growers. They are about to engage a secretariat and additional staffing to ensure sufficient resources to step up to the plate on matters affecting small forest growers.

With the billion tree programme recently launched, the Association is adamant any tree planting should be well planned. Equally that planting must be able to occur in a way that brings long term value gains to a property and the planet.

If you want to ensure you can be part of the voice of small growers or simply to learn more about growing tree crops go to www. nzffa.co.nz to join up to a local branch and or special interest group. As a member you will also have the opportunity to go to field days and you will also receive the NZ Treegrower, in my view one of the best forestry mags available.

As always please remember the thoroughly important message relating to this wonderful land of great promise and opportunity.

“It remains, as always, fundamentally important, the only way forward for climate, country and the planet is to get out there and plant more trees”.

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24

January 2019

CANTERBURY FARMING

FORESTRY

New sustainable forestry portfolio Craigmore has joined forces with German partners GlenSilva to grow a new sustainable forestry portfolio in New Zealand.

❚ by Kent Caddick The Kauri Forestry LP will focus predominantly on afforestation, with some investment in existing trees. As with the initial Craigmore Forestry business, Kauri Forestry will also look for opportunities to plant different species in addition to pinus radiata and work with Maori landowners.

GlenSilva is part of the House of Westphalen Group, one of Germany’s largest owner and operator of agricultural and forestland.

The House of Westphalen has for many centuries managed its forests for multi-purposes, providing environmental, recreational and landscape benefits as well as producing a sustainable supply of timber for the wood processing industry.

Che Charteris, CEO of Craigmore, says the establishment of Kauri Forestry strengthens Craigmore’s presence in the sector.

“Our first forestry fund, founded in 2010, is believed to be the largest afforestation programme in the country between 2010 and 2012.

“These forests are now absorbing over a quarter of a million tonnes of carbon dioxide per year, equivalent to two thirds of the net GHG emissions of Gisborne City or the Whakatane District.”

Charteris says commercial and permanent forestry is a crucial industry for a more sustainable economic and environmental future for New Zealand.

“However, forestry is more than just about blanket planting pinus radiata wherever you can jam it. Lessons need to be learned from the huge surge in plantings in the mid-1990s.

“The post-harvest erosion events we have

seen on the East Coast of the North Island recently emphasise the importance of having the right tree on the right land.

“Undertaken carefully, plantation forests help to maintain soil quality and land stability in otherwise marginal areas, and this is especially important in regions like New Zealand’s east coast and north of the North Island.

“In addition, forests provide stable ecosystems during each rotation. Currently, only 5% of global timber supply comes from sustainably managed, plantation forests.

“Timber from non-sustainable native forests is becoming increasingly scarce and long-term plantation forestry will have to provide the bulk of global timber supply into the future.”

Charteris says New Zealand has over 100 years’ experience growing softwood and is one of only a few industries in which New Zealand has a unique competitive advantage.

“We grow softwood trees quicker and more efficiently than every other country in the world.”

He says another key project between Craigmore and GlenSilva is to identify new wood processing opportunities in New Zealand for which there is interest from continental Europe.

“One of Craigmore’s strengths is that we are a local management company comprising New Zealand farmers, orchardists and foresters that can make positive impacts on the full range of different classes of New Zealand rural land, whether flat and fertile or steep and erodible.

“We are very much looking forward to our return to the forestry sector.”

New venture: Craigmore CEO Che Charteris says the establishment of Kauri Forestry strengthens Craigmore’s presence in the forestry sector.

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CANTERBURY FARMING

January 2019

25

Protecting crops from insect attack – are neonicotinoids worth it?

Growers of arable crops, forage brassicas and pasture grasses would suffer financial losses if vital insecticides were taken from the market.

Mark ross ❚ by Agcarm chief executive ❚

A report investigating the value of neonicotinoid seed treatments to New Zealand’s economy, by BERL Economics, estimates their contribution as up to $1.2 billion.

Neonicotinoids (neonics) help protect crops and pasture against attack from insects like Argentine stem Weevils, black beetles, grass grub, aphids and more. Most are applied as a seed coating — protecting the plant as it grows.

They are used for cereals, forage brassicas, grass seed, maize/sweetcorn, potatoes and winter squash/pumpkins as well as flea control for cats and dogs and pour-on treatment for flies and lice in sheep.

The ‘Economic value of neonicotinoid seed treatment to New Zealand’ report estimates that 62 percent of the arable grain, forage brassica and pasture grass seeds are planted with neonic treated seeds. It estimates that the cost to the economy of removing these seed treatments as between $800 million and $1.2 billion in the short to medium term.

The cost takes into account suppliers, producers and increased expenditure from those working directly or indirectly in the industry.

Commissioned by Agcarm in 2014, the report remains relevant today. In fact, the cost would be even higher if inflation, increased costs for resourcing, health and safety, and fuel hikes were taken into account. A lack of SILO CANTERBURY FARMING X alternative options will also increase 267W the cost.

The main alternatives available to New Zealand growers include organophosphates, carbamates and synthetic pyrethroids. These alternatives are often more toxic. Organophosphates are one of the most effective (yet toxic) alternatives to neonic seed treatment, but their use is reducing. The Environmental Protection Authority made the decision to cease approving many organophosphates in a staged approach from 2016.

Aside from the economic ramifications, the report assesses the employment generated as a result of these seed treatments.

This equates to approximately 5,300 full time employees.

Crop yields would also fall by a third if alternate crop protection tools were used instead of these seed treatments. The value of the treated seeds versus non-treated seeds alone is worth $368 million.

One of the unique benefits of using neonic seed treatments is that the active ingredient can be applied at very low rates per hectare, reducing the number of insecticide applications in comparison to spray treatments.

Seed treatment with neonicotinoid application is highly targeted and one of the most environmentally-friendly means of crop protection product application. Other benefits include low toxicity to humans and other mammals and no reported effect on bee health since first being registered in New Zealand in the early 1990s.

The relationship between neonic seed treatments and New Zealand’s bee population has sparked much debate in recent 180H MM years.

Links to bee health were touched up-

Plant protection: agcarm chief executive Mark ross says neonicotinoids (neonics) help protect crops and pasture against attack from insects like argentine stem Weevils, black beetles, grass grub, aphids and more. on in the report, with the following observations from industry: • Seed treatments represent a very low risk to bees.

• No unexplained bee colony losses were linked with proper use of neonic seed treatments in New Zealand.

• Correct stewardship mitigates the risk of neonic dust exposure to bees.

Unlike Europe, there is very limited use of neonics, if any, as a foliar spray, so dispersal

into the environment does not occur. Locally grown crops that use neonics are generally non-attractive to bees and are pollinated by wind or other insects.

So as the report concludes, these seed treatments aid New Zealand’s economy and its farmers.

It underscores that neonics are a vital tool for farmers in growing safe, healthy and sustainable food for an escalating global population.

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26

January 2019 CANTERBURY FARMING

Cheaper sow down options working well During the last few years we have had a lot of interest in providing our clients with a truly good value pasture seed mix.

Steve Finch ❚❚by ❚❚Speciality Seeds

These enquiries come from clients who are looking for a top producing perennial ryegrass and white clover mix that fills the gap between the very cheap rye/clover mix and the more expensive top of the line mixes.

We do of course have both the cheaper rye/clover mix, as well as providing top of the range blends. In fact, as we keep saying, if a seed is commercially available, we can source it for you.

However, every year we get approached by our clients who are looking for an intermediate cost blend, while not compromising production. This of course provides us with a challenge.

Over the last few years we have managed to do so, as we often find willing seed

companies who for whatever reason wish to sell some of their top perennial grasses at a reasonable price.

The buying power we offer makes the cheaper blends possible, and so we can pass these cost savings onto you, our clients.

We keep the cultivar we are using confidential between us and the seed supplier for obvious reasons and are very particular when selecting the grass and carefully check its production and quality before we put our name to it.

We call this mix our Breeder B mix, and this coming Autumn it’s using a diploid perennial ryegrass that we feel is the best we have ever manged to get access to.

The perennial ryegrass we will be using this autumn is one that Specialty Seeds are very familiar with this cultivar and we are very excited to bring this offer to our clients. And has an excellent purity and germination.

The Breeders B mix is a blend of 21 kgs of the diploid perennial ryegrass, mixed with 2 kgs of a medium leaf clover and 2 kgs of a large leaf clover, making the mix a total of 25 kgs per hectare.

Should you be looking, we have excellent stocks of this mix for this coming Autumn and welcome any enquiry you may have.

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CANTERBURY FARMING

DAIRY

January 2019

Entries close for 2019 Dairy Industry Awards

27

The Canterbury-North Otago region has received the highest number of entries in the 2019 New Zealand Dairy Industry Awards.

Fifty-nine entries have been received in the Canterbury-North Otago Dairy Industry Awards including 17 in the Share Farmer of the Year, 30 in the Dairy Manager of the Year and 12 in the Dairy Trainee of the Year competition.

NZDIA General Manager Chris Keeping said a total of 393 entries were received for the Awards, an increase of 29 from last year.

“It’s a great result and we are really thrilled with the response,” Keeping said.

“Changing the visa entry criteria has also seen an increase overall in entry numbers in the Dairy Manager and Dairy Trainee categories.

“The numbers ensure strong categories will run in each of our 11 regions and that is great for the entrants, for the categories and for us as organisers of the Awards.”

Nationally, 106 entries were received in the Share Farmer category, 166 entered the Dairy Manager category and 121 entered Dairy Trainee of the Year.

The Central Plateau region received the second highest amount of entries with 47, with Southland-Otago following closely with 46 entries while Hawkes Bay, West Coast-Top of the South, Auckland-Hauraki and Waikato received 38, 37, 36 and 34 entries respectively.

Keeping said the regions had worked hard to attract the entries and was rapt

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Winners are grinners: The winners in the 2018 new Zealand Dairy Industry awards were (from left): Simone Smail (Dairy Trainee of the year), Gina and Dan Duncan (Share Farmer) and Gerard Boerjan (Dairy Manager). that all three categories would be run in all 11 regions.

“Previous Dairy Industry Award winners continue to make an impact within the dairy industry and many are clear leaders.

“All entrants can give themselves a huge pat on the back as they’ve taken an important step in enhancing their career and farm business just by entering the Awards.”

Judging will begin in the new year for the 11 regional categories, with winners announced at dinners throughout the country in March next year.

The 33 winners of those categories will then progress through to the national finals in Wellington in May next year.

Visit www.dairyindustryawards.co.nz for more information and to view an events calendar of the regional awards.

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January 2019

CANTERBURY FARMING

DAIRY

The importance of P cycling ❚ with Peter Burton

At a recently held farmer information day on the coming changes to soil fertility programmes, soil tests from a highly productive intensively farmed pastoral property were presented.

The initial test showed an Olsen P of 4, the subsequent test showed an Olsen P of 7.

The property is primarily used for lamb finishing and the performance of the stock is carefully monitored and the results have been, and still are, as good as those achieved anywhere.

Photos from the block showed masses of both red and white clover, along with plantain and chicory. Grasses are not planted but appear of their own accord, we assume from seed that has accumulated in the soil over many years.

In my visits to the property since 2012, along with the reports of pasture and animal production, at no time has a capital input of phosphorus been seriously required or considered.

There are historic long-term measures (trials) that show maximum pasture production from sites with an Olsen P of 10 or slightly lower. It is this data that brought about the rule-of-thumb that clover survival requires an Olsen P of ten.

The significance of this is that because clovers require higher levels of plant available nutrient than grasses, where clovers thrive the same conditions are suitable for high fertility grasses. It is only where clover is the provider of nitrogen that Olsen P levels are of serious consideration.

Which would you prefer?

The question that requires answering is POD-LOCK CANTERBURY FARMING 267W X 180H MM why have recommended Olsen P levels been The tests were taken prior to the introduction of a biologically based soil fertility programme, and comparative tests five years later.

A farmer in attendance objected on the basis that the data was misleading. His concern was around the Olsen P tests results.

steadily ratcheted up over the last thirty years.

Having been involved in the phosphorus industry for over ten years the answer is that no-one actually asks for supporting data, and because everyone believes that their neighbours and colleagues properties have higher Olsen P levels, it’s an easy sell.

There is a secret to maximising both crop and pasture yield with low Olsen P levels, and inputs, that only a very few highly successful operators understand. This allows them to apply approximately half the normally recommended phosphorus and never be concerned about performance.

At the meeting mentioned earlier, photos of the knee-high crops of clover were shown, and it was obvious to all including those from Lincoln that there was no obvious phosphorus deficiency.

There are three letters that all students of soil fertility understand the significance of and they are ROC, the abbreviation for Rapid Organic Cycle. It is the speed at which phosphorus cycles that is more important than the amount contained in the soil.

And the key to increasing the speed of phosphorus cycling is having outstanding physical soil structures. Soils should ideally contain 25% air, and 25% moisture. Under the pressure exerted by feet during intensive grazing soils compress.

It is when the soil does not rapidly regain

its ideal structure after animals are removed that compaction has occurred, and compaction is rated as the number one issue by those involved in practical soil fertility work.

Compacted soils grow less total feed in a season although during periods when all conditions are favourable exceptional growth is possible. Desired plant populations decrease rapidly after establishment and renewal is necessary within five years.

Feed quality is compromised due to plants photosynthesising less efficiently which means feed is less palatable and animal performance suffers.

The ability of soils to maintain their ideal structures is dictated by the amount of biological activity taking place and this to a large degree is related to the calcium content of the soils.

It’s been long known that earthworm numbers increase after the application of lime and where earthworms thrive other beneficial soil dwellers also flourish.

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CANTERBURY FARMING

DAIRY

January 2019

29

Westland Milk revises payout range prediction downward Westland Milk Products says the decline in global prices for dairy commodities, especially butter, has forced it to lower its predicted payout range for the 2018-19 season.

❚ by Kent Caddick The company has announced a drop it its predicted payout from a $6.50 to $6.90 range to $6.10 to $6.50.

Westland Milk chairman Pete Morrison said the factors driving the revision were largely out of Westland’s control, involving international market forces and an increasing abundance of milk supply globally.

He said current indications were that the co-operative would come in about the middle of that range.

“This, of course, will not be news our shareholders want to hear,” Morrison said.

“However, we owe it to them to be transparent about our predictions. The last thing we want to do is over promise and under deliver. It’s better shareholders are prepared now and budget accordingly.”

Morrison said some internal factors were also influencing the payout.

“Ironically, we have had a very good start to the season, however, the build up to peak milk period is higher than predicted and lasting for longer.

“While this might appear to be a positive for the co-operative, the reality is that during peak our processing capacity means we have to produce mostly low value bulk com-

modity powders in order to ensure we can get the milk through. That means we have to make less high value product, such as Infant and Toddler Nutrition, which give us the best returns.”

However, Morrison said Westland was making much improved progress on the matters it had direct control of.

“Westland has the right business strategy with its shift in focus to specialist products produced from milk segregated by qualities such as A2, grass-fed and environmentally sustainable.

“Demand for our Ten Star Premium Standard (10SPS) milk is high and will give good returns. We have enormous interest from international markets and predicted demand outstrips forecasted supply.

“We need more shareholders to convert to this standard as soon as possible. This type of product will provide much better returns and not likely to be affected by international commodity pricing movements.”

10SPS Milk is a standard developed in partnership with Westland Shareholder Southern Pastures. It is based on grass-fed milk, produced on farms complying with very high environmental, animal welfare, and human resource standards.

He said Westland will be embarking on

Expansion: Westland Milk Products says new capital works at its Hokitika factory will increase the company’s capacity to process segregated milk. new capital works at Hokitika to increase the company’s capacity to process segregated milk, even during peak milk periods.

“While this work will not be completed in time for this season, it will help manage peak periods better and allow the co-operative to continue to grow its ability to produce and market value-added products. This will help move the co-operative towards a more secure future.”

However, he said while the international butter price has fallen, it is important to note

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there are some positive signs regarding their butter product and marketing.

“Just recently Westland passed the three million pack mark in sales of its consumer butter, Westgold, into the New Zealand ‘gourmet’ end of the market.

“Going into the retail consumer goods market in New Zealand was a new foray for us and it is paying off.

“In only three years we are now outselling all other gourmet brands combined and sales are increasing steadily.”

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January 2019 CANTERBURY FARMING

WATER & IRRIGATION

Farmers learn to manage irrigation in the face of a long hot summer With El Nino weather patterns forecast to bring a dry summer, 56 farmers have been developing their irrigation knowledge by attending a series of workshops in South Canterbury.

❚❚by Kent Caddick The workshops have been run by IrrigationNZ and organised by local irrigation schemes including Morven Glenavy Ikawai Irrigation Company (MGI), Benmore Irrigation Company and Opuha Water.

“It’s looking like the coming summer may be challenging for farmers in South Canterbury with NIWA scientists predicting El Nino conditions are likely to affect New Zealand until the autumn of 2019. This typically brings hot, dry conditions to east coast regions and often droughts,” IrrigationNZ technical project manager Steve Breneger said.

“This will make careful irrigation management very important for farmers across much of New Zealand.

“Good irrigation management improves water use efficiency, and reduces nutrient losses and can also significantly reduce electricity costs so there are many benefits from having staff well trained in irrigation management.”

The training sessions covered a range of topics such as irrigation operation and scheduling and using tools including soil moisture monitoring equipment and weather forecasts to make irrigation decisions.

Farmers also learnt about how to manage over summer on a limited amount of water through budgeting their water use and how to reduce their water use while having the least impact on their operations.

Farmers received advice on how to carry out pre-season checks to see if irrigation sys-

Bucket Brigade: Farmers out in the field carrying out a bucket test at the Opuha Water workshop.

tems were ready to be used and they also carried out a bucket test on a centre pivot irrigator. This test checks whether water is being applied evenly by the irrigator, and is a key measure of whether an irrigation system is running correctly.

Chair of Benmore Irrigation Company Henry Williamson said their shareholders were being proactive to ensure they are using good management practices on their land.

“Having irrigation management training

session helps to improve our shareholders irrigation management practices.

“The workshop is also a way of bringing farmers together to share their challenges, ideas, skills and experiences. It also allows farmers to address actions that have been identified from Farm Environment Plan audits,” Williamson said.

Judith Neilson, Environmental Manager at Morven Glenavy Ikawai Irrigation Company, said the company provides an annual irriga-

tion training workshop for its shareholders.

“The workshop is designed to cover both collective and individual requirements within the scheme, and particularly actions that have been identified as being required from Farm Environment Plan audits,” Neilson said.

“The workshop helps to keep irrigators up to date with current knowledge and practical irrigation management strategies. It is a good mix of theory and practical learning that irrigators can apply on their farms.”

WATER & IRRIGATION

CANTERBURY FARMING

January 2019

31

Irrigation is for grass, not the road What goes on at the farm should stay on the farming according to Environment Canterbury.

❚ Article supplied by ECan

With the irrigation season in full flow, ECan is reminding all irrigators to ensure the accuracy of their water spread to avoid potential road safety issues.

ECan regional leader for compliance delivery James Tricker said irrigation consent holders are responsible for the use of water that is applied to their properties.

“Resource consent conditions authorise the use of water to a consented piece of land, not to run to waste,” Tricker said.

“We understand it can be difficult on very windy days but hardstand areas such as state highways and rural roads are not consented or authorised to be irrigated.”

Irrigation system operators must monitor the use of their water and equipment to make sure the water is used in the way that was authorised by their resource consent.

“All irrigators should ensure that their water allocations are used diligently and not wasted, especially in a dry season. We will continue to monitor unauthorised use of water utilising our new locally based water zone officers and deal with it on a case-by-case basis,” he said.

“Irrigation onto roads, particularly gravel roads, is not only a waste of water but also has the potential to create safety issues for motorists.

“It is the surprise element and the force of the water that could easily startle a motorist, it is especially dangerous for those on motorcycles” Tricker said.

Irrigation New Zealand chief execu-

Warning: Irrigators are being reminded to ensure irrigation drift doesn’t affect road safety.

tive Andrew Curtis said two of the main culprits for water going over-boundary were the end guns on pivot irrigators and travelling irrigators set up too close to roads.

“Watering onto roads creates a significant safety hazard, so it’s really important for irrigators to ensure they water within their property boundaries.”

“My advice is to ensure end guns are

set and operating correctly and regularly checked. When you set up your travelling irrigator always have a set-back distance from the road,” he said. anyone experiencing spray on the road that is clearly coming from an irrigation system should contact Environment Canterbury on 0800 324 636. If there is immediate danger to road users they should contact the police.

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January 2019

CANTERBURY FARMING

WATER & IRRIGATION

❚ with Dr Tony Davoren, Hydro Services

Always someone defying the odds Just how much rain is required and/or how wet before irrigation isn’t needed?

Irrigation being applied after one of the wettest Novembers on record and a damp start to December will always inspire a theme.

But rather than highlight the “reason(s)” for being the only irrigator running, I am more interested in just how wet was November 2018.

It seemed to rain nearly every day in November although statistics from the Botanic Garden and Ridgens Road rainfall sites tell us something different: • 12 out of 30 days were rain days • 5 days with more than 10mm (no particular reason for picking on 10mm).

• From 1.3mm in 2017 to 76.4mm (123.5mm at Ridgens Road) in 2018.

The plot of November rainfall from the Botanic Gardens for the period 1872-2018 shows there are many Novembers wetter than 2018.

Once the rainfall totals are ranked the data reveals 2018 is only the 18th wettest since 1872. The record is held by 1952 when there was 137mm (OMG it must have been wet).

Compare this with Winchmore where 184mm was recorded and was the second wettest November since 1867 – the wettest being 1952 when 268mm was recorded and that had to be wetter than north of the Rakaia.

Seriously wet: Staff at Geraldine recorded 310mm in South Canterbury and another rainfall record keeper at Te Moana recorded 359mm.

It was even wetter further into South Canterbury where one of our staff at Geraldine recorded 310mm and another rainfall record keeper at Te Moana recorded 359mm. Now that is seriously wet.

Back to my observing two irrigators going at Lincoln on Friday (14 December) after not only what November delivered but rainfall on 5 of the first 13 days in December – and

nearly 6mm on 13 December.

I’m not sure why irrigation was required on such deep high water holding capacity Templeton silt loam soils – yes that’s correct, these irrigators were not going on a river bed of shallow stony Lismore soils. Nor were they irrigating pasture. But they were the only irrigators operating on my drive to and from Ashburton.

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I thought I was about to write “that not in all my years of monitoring soil moisture since 1983-84 have we not had to irrigate in November”.

I shouldn’t be surprised that someone would put paid to that thought. This will be a season when some autumn crops will be grown without any irrigation.

LIVESTOCK

rob Cochrane ❚ by Wool Procurement Manager, ❚ PGG Wrightson Wool ❚

A wooly outlook The Latin phrases ‘annus horribilis’ and ‘annus mirabilis’ probably best describe the wool calendar year to the end of 2018.

The former term needs no expansion for those who remember The Queen’s speech to commemorate 40 years of her monarchy in 1992, when she was referring to the wider royal family’s unsavoury marriage and public issues, plus the almost burning down of Windsor Castle that year. Simply meaning a horrible year, annus horribilis is, in my opinion, a suitable descriptor for how crossbred wools have performed during 2018, from a grower’s perspective as prices continued their downward trend.

From a fine wool producer’s perspective, however, annus mirabilis or a wonderful year is a suitable term for the way the fine wool market has kept performing, with several merino wool types cracking through record levels during the season and many halfbred types reaching quite astounding levels, due to an obvious shortage of both breed types but definitely assisted by the slick manufacture and marketing of high end apparel particularly in the outdoor wear ranges.

Whilst the 2018 year has passed by and we look forward to 2019, from a wool perspective we are only around half-way through the wool selling season.

The fine wool season here in New Zealand has pretty much been completed, but the bulk of our crossbred types are, from now onwards, about to test the market proper.

With the market this season to date displaying its fragility from week to week, in my opinion we are unlikely to see too much change for the rest of the season at least, because wool exporters will have most likely concluded recent forward sales either at, or close to, existing market levels.

What that means is that we will probably be subjected to continual selective buying with occasional wild fluctuations due to a hand-to-mouth demand situation driven by off-shore wool processors, some of whom may also be trying to deal with tariff structure changes.

The Kiwi dollar has also gathered a little more strength against its US counterpart amidst international economic

CANTERBURY FARMING

January 2019

33

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There are growers who are not prepared to sell their crossbred wool at the current weak levels and whilst I genuinely respect their decisions, growers must be aware that over the past year we have sailed into previously uncharted territory with no support mechanism to underpin the market and, therefore, in my opinion, any stock piling of greasy wool is likely to hinder sustainable price improvement in the foreseeable future.

Exporters have been faced with dwindling demand from the (traditionally) major export destination of NZ wool, China, which in-turn has impinged on their ability to buy large volumes. This is not a quick fix and is likely to continue for some time.

There is plenty of good work occurring in the “new uses for wool” space, and a few “niche market” opportunities have featured in the media recently, however to have enough volume requirement to positively influence the spot market, will

‘

We will probably be subjected to continual selective buying with occasional wild fluctuations.

take considerable time.

The best arena to offer wool to the exporting trade at present is definitely via the auction system where all exporters have the opportunity to assess every lot visually along with the relevant test information and bid against others who may view each lot differently and, although the market is difficult, the best available prices are achieved. On a positive note, there is currently very strong demand for crossbred lamb’s wool.

That’s my view.

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January 2019 CANTERBURY FARMING

LIVESTOCK

Early start to strong velvet season Velvet marketers say a good spring, with plenty of pasture growth, meant the antler harvest this year began about two weeks earlier than past years. In mid-December, about two-thirds of the anticipated 725-tonne 2018-19 crop had been harvested.

❚❚with Trevor Walton Deer Industry NZ Asia markets manager Rhys Griffiths says buying activity began strongly in late-October, with prices for the traditional Korean styles fully firm on last season’s close.

“Since then we have seen some adjustment in price relativities between grades, but exporters have done a great job of holding the line. Overall prices to farmers are still very strong,” Griffiths says.

PGG Wrightson velvet manager Tony Cochrane says there is good demand for the Chinese styles, the spiker and regrowth, that are now starting to come forward, with prices up on last season’s close.

CK Exports managing director Colin Stevenson says it has been a good season so

far, with increased volumes coming in from farmers, being sold, paid for and shipped.

“We are holding no stocks in store and are enjoying strong demand at good prices from a wide spread of buyers,” he says.

Both Stevenson and Provelco general manager Ross Chambers highlight the fact that close to 90 per cent of the velvet cut by 20 November was Super A grade, a percentage that has been increasing year by year. It reflects the great strides farmers have been making in breeding antler for size and style.

This suits the processing systems used by healthy food manufacturers in Korea, but they say it’s not well suited to the traditional oriental medicine trade which is based on the sale of sliced velvet.

The smaller B-grade sticks are better suited to this because they hold their shape and structure when they are sliced.

Chambers says every customer has a preferred style they prefer to buy.

“They want what they want, so as sellers we do our best to provide them with this, at the best price we can achieve for our farmer suppliers.”

Griffiths says that at the start of each season there is always some apprehen-

Harvest ready: Two-year old velvet stags with velvet ready for cutting. Photo by Richard Hilson sion among buyers and sellers as they try and agree on a price level. Both want to ensure that the level struck is fair and likely to be sustained across the season.

“But despite this, the reality is that overall velvet prices have been strong for nearly a decade now. That reflects the determination of the main sellers to get the best possible prices for their farmer suppliers,” he says.

“They have the confidence to do this because they know there’s a steady stream of

new customers – healthy food product manufacturers -- visiting New Zealand to see the industry for themselves and to secure supply.

“Some of them come with their marketing people and camera crews to get photos and video of deer in our fabulous landscape.

“Healthy food products based on velvet and its New Zealand provenance are very trendy in Korea at present... we are all hoping that it’s a trend that stays around for a very long time.”

CANTERBURY FARMING

LIVESTOCK

January 2019

35

A busy year ends on a positive Reflecting on the past year, it’s been extremely busy for Beef + Lamb New Zealand.

Phil Smith ❚ By Director Beef + Lamb New Zealand ❚

Our new chairman, Andrew Morrison, took office in March and during June and July the Directors embarked on a consultation round with farmers over the proposed sheep meat and beef levy increase. This was a great opportunity to get around the region, talk to farmers and get feedback on what B+LNZ is doing.

Earlier in the year, we released our Alternative Proteins report – which is an emerging issue for our red meat producers – and one month later we released our Environment Strategy which has been well received by farmers and industry.

A lot of resources have been partitioned into the M. bovis response – and a lot of hard decisions have had to be made. I feel for all those farming families that have been greatly affected by this outbreak.

From what we are hearing, the eradication process is going well with no surprises emerging from the spring bulk milk tests.

We released Taste Pure Nature – our origin brand – in May and this will be used for market development and promotions in the USA and China.

In November, “Lanercost” B+LNZ’s first Future Farm had its first open day. Situated near Cheviot, this farm is a 50/50 partnership with Carl Forrester, Simon Lee and B+LNZ. The focus will be to try future farming technologies and systems while continuing to operate a profitable and environmentallysound farming business.

Farmers have had exceptional sheep meat returns this year and beef prices have remained firm. Coupled with excellent climat-

Favourable season: Beef + Lamb new Zealand director Phil Smith says returns this year and beef prices have remained firm.

ic conditions for pastoral farming, this has been a really positive season. Usually when commodity prices are high, farmer confidence is also high and farms are sought after.

While confidence is high on the back of good prices, there are challenging headwinds for the sector. Farmers are ready to play their part on issues like climate change and water quality, but they’re naturally concerned about the impact of possible regulations and whether they’ll help achieve better outcomes for both New Zealand and farmers.

The red meat sector is one of New Zealand’s largest employers and exporters,

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We can and have made positive differences to our environmental impact over the past 30 years, and though there’s more to be done, it’s vital that whatever regulations are developed that they get the balance right between further improving our environmental outcomes and not unfairly burdening farmers.

Global demand for New Zealand’s red meat is growing, with consumers increasing-

ly seeing our pasture-fed, sustainably and ethically raised beef and lamb as a premium product.

This is a huge and unique opportunity for New Zealand, and one that we need to talk about proudly to counter negative and misinformed comment about our sector.

On a brighter note, I hope farmers can get some time to socialise with family and friends and enjoy a bit of a break. Hopefully we will see some sunshine to start the year off and let’s hope the worldwide shortage of sheep meat continues for 2019.

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January 2019

CANTERBURY FARMING

Toyota NZ signs up to hydrogen Toyota New Zealand has joined the New Zealand Hydrogen Association as a first step towards developing an eco-system for hydrogen-fuelled vehicles in New Zealand.

❚ by Kent Caddick Toyota New Zealand Chief Executive Alistair Davis said hydrogen fuel cell development is a key component of Toyota’s commitment to alternative fuel sources and sustainable motoring.

“Toyota is at the forefront of developing and marketing hydrogen-fuelled vehicles with the Mirai FCEV car now available to Japanese, European and Californian drivers,” Davis said.

“By joining the Hydrogen Association, we look forward to supporting and progressing the use of hydrogen in New Zealand as a low emission fuel source.”

The New Zealand Hydrogen Association was formed in September 2018 by private sector companies with seed funding from the Ministry of Business, Innovation and Employment. The founding members include Fulton Hogan, HW Richardson Group, Hyundai, Siemens (NZ), Green Cabs, Real Journeys, and Contact Energy.

Toyota’s Mirai, a hydrogen fuelcell vehicle is making an impact in australia.

“New Zealand has an abundance of renewable electricity that could be used to produce hydrogen in a sustainable way,” Davis said.

Hydrogen vehicles are a form of electric vehicle (EV). Hydrogen is mixed with oxygen in the fuel cell to chemically create electricity which is stored in the battery and powers the electric

motor. Hydrogen refuelling only takes a few minutes and water is the only emission from the exhaust pipe of a FCEV. Mr Davis said the high proportion of renewable electricity in New Zealand means the conversion of the national fleet to electric, hybrid and fuel cell electric vehicles would play a crucial role in meeting the commitment of the motor and transport industry P H O N E

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Ford’s technologically advanced SUV The new Ford Endura, which the company says is its most technologically advanced sports utility vehicle, arrives in New Zealand showrooms next month.

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“With the addition of the new Endura, Ford is offering a complete, no-compromise range of SUVs to fit the New Zealand lifestyle,” Ford New Zealand managing director, Simon Rutherford said.

“We’re very excited to add the new Endura to our stable of SUVs. It’s really a rolling showcase of the latest Ford active safety technology as well as fantastic, head turning design.

“It’s a vehicle that has stand out presence on the road and will further impress with its attention to detail inside and out.

“The new Endura is squarely aimed at customers wanting something a bit more special, a bit more than the usual, yet still retain the pragmatic element,” Rutherford said.

Available in stylish Trend, performance-inspired ST-Line and upscale Titanium, the new Ford Endura offers a comprehensive range of Ford Co-Pilot360 Technologies.

Ford’s Co-Pilot 360 Technologies are a suite of camera- and sensor-based driver assist technologies all designed to give drivers more confidence on the road, be it the driveway or the motorway.

These include Adaptive Cruise Control (ACC) with Post-Collision Braking and Evasive Steering Assist, and Lane Keep Assist enacted via the Electric Power Assisted Steering (EPAS) with pull-drift compensation to keep the vehicle within marked traffic lanes.

There’s also Traffic Sign Recognition as standard to help alert the driver to the local speed limit. The Endura STLine and Titanium include Enhanced Active Park Assist.

The Endura sits on 2849mm wheelbase, enabling one of the most spacious SUVs offered in the Ford line-up; head and shoulder room is greater than any other Ford SUV. Engineers have also focused on comfort in the cabin to ensure offers unmatched levels of refinement.

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The Endura sits on 2849mm wheelbase, enabling one of the most spacious SuVs offered in the Ford line-up.

Rear seat-room is also expansive and behind the rear seats an electronic tailgate gives access to the 800L of stowage space. The tailgate can be operated by either the key fob or dashmounted push-button. The ST-Line and Titanium add the popular hands-free tailgate, allowing another access option with the swipe of your foot.

The Endura’s interior brings not only a high level of content as standard on every model, but a premium ethos at every point. The 10-way adjustable driver’s seat allows personalised comfort while enabling easy viewing of the 10-inch instrument cluster. A sweeping centre console crosses to an elegant, space-saving rotary e-shifter and electronic park brake.

The Endura’s 8.0-inch full-colour touchscreen delivers SYNC 3 with Apple CarPlay and Android Auto smartphone compatibility through a standard ninespeaker audio system.

Ford MyKey, which enables programmable memory settings including a ‘valet’ mode for peace-of-mind, is also standard with SYNC 3 on Endura.

A suite of seven airbags with an ex-

Ford’s Co-Pilot 360 Technologies are a suite of camera and sensor-based driver assist technologies all designed to give drivers more confidence on the road pansive suite of Driver Assist Technology is fitted to every Endura. ABS with Electronic Brakeforce Distribution, Roll-Stability Control and Post-Collision Braking and Evasive Steer Assist joins Autonomous Emergency Braking with Pedestrian Detection as standard across the range.

The 2.0-litre common rail turbodiesel produces 140kW and 400Nm and is fitted exclusively to an eight-speed paddleshift automatic.

Customers can choose from frontwheel drive and all-wheel drive on the entry Trend variant, while all models boast Torque Vectoring Control. The AWD and FWD powertrains both have a combined fuel figure of 6.7L/100km.

In addition, the Endura has a braked towing capacity of 2000kg with towing made easier and safer with Trailer Sway Control.

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38

January 2019

CANTERBURY FARMING

Forester takes out prestigious car of the year award The accolades for the new Subaru’s Forester peaked with it being awarded the New Zealand Motoring Writers’ Guild 2018 New Zealand Car of the Year Award.

❚ by Kent Caddick The Subaru Forester will be the 31st vehicle to be printed on the award’s stand and can be proud of the fact that it is the first Subaru to grace the trophy.

The New Zealand Motoring Writers’ Guild Car of the Year award has been given out annually since 1988 and is considered the country’s most prestigious motoring award since it is awarded without commercial ties.

The award is decided by motoring commentators from throughout New Zealand and results from them having assessed the candidate vehicle in their local areas over an extended period.

Criteria ranges from how the vehicle performs its intended role; its styling, interior design and accommodation; fit, finish and quality; ride and refinement; performance; road-holding and handling; value for money; active and passive safety and environmental responsibility.

New Zealand Motoring Writers’ Guild president, Richard Edwards said the Subaru Forester makes an ideal New Zealand Car of the Year.

“It offers the durability and functionality

Kiwi families want, alongside next generation safety technology. And at $39,990 it proves the New Zealand new car market offers value to buyers never seen before.”

Twenty two New Zealand Motoring Writers’ Guild members, who voted on the eligible 2018 cars, that they have driven throughout the year. A COTY sub-committee then selected a list of 10 finalists for the award.

Subaru of New Zealand Managing Director Wallis Dumper says that if the majority of New Zealand’s motoring journalists think the Subaru Forester who were they to argue.

“We wanted to upgrade Kiwis’ fun with this tech-packed SUV and knew when the fifth-generation Subaru Forester arrived that we had a pretty special vehicle on our hands.

“The New Zealand’s Motoring Writers’ Guild has recognised that not only is the Forester fun, but there’s a good reason why its Subaru’s number one-selling model globally.”

The Subaru Forester was first launched in 1997 but the all-new 2019 Subaru Forester is an entirely new vehicle from top-to-toe and has also physically grown both on the interior and exterior - firmly removing any doubts as to whether this vehicle is an SUV.

The Subaru Forester SuV is more than capable off-road with 220mm of ground clearance.

at the new Zealand Motoring Writers’ Guild Car of the year presentation were nZ Motoring Writers’ Guild president richard Edwards, Subaru new Zealand Managing Director Wallis Dumper, Seven Sharp hosts Hilary Barry and Jeremy Wells and Subaru’s Marketing Manager Daile Stephens.

CANTERBURY FARMING

Being sure to be sure

The latest Farmers weekly continues the plethora of sustainability related articles in recent editions.

❚ by Solis norton Lead story: ‘The (emissions) targets are too tough’. Page four: ‘Farmers held back on green changes to reduce the emissions of their livestock by a lack of knowledge’. Page eight: Feds gathering funds to fight Lake Rotorua proposed plan change 10. And at least four more major stories on emissions and water.

Frame this up amongst the news coming out of the latest climate change conference COP24 in Poland. The future projections, more dire than ever, would have brought us all to tears saved only by the comic relief of your man Trump’s US delegates and other major oil producing nations promoting the use of fossil fuels in the fight against global warming.

What’s left when you boil it all down?

The physical resources required for our food are spiralling upward away from the price we the food producers receive for it.

I mean resources in a broad sense. The usual day to day farm inputs, but also the resources invested in vibrant growing systems in reasonable balance with the environment, including emissions. Plus resources that make these systems robust enough to weather a few storms of all kinds without driving the owner to drink.

Yes we’ve heard it all before. Let’s get with the season and call it the ghost of Christmas present, even though zombie is more appropriate given it just refuses to die.

So what if we went on a sleigh ride to a decade or three in the future, as ghosts of Christmas yet to be. Where might that spiralling divergence between resource and price lead?

There is vast uncertainty from on-farm to local, to regional, national, and globally too all bound up in how we might equitably join the value of resources and the value of price for food. Enough to almost make one give up. But ultimately we all realise certainties too, that we’re sure we can be sure of. I would urge you to hold tight to these when the unknowns seem to mount up impossibly.

The key certainty is that this divergence cannot go on for another generation. At some point there must be a major rebalance. And relatedly, the system that delivered us to that point will not be the right system to take us on further.

And thirdly, we absolutely must have a reasonable vision of the new system before we need it. We can knock a few rough edges off as we go, but we need the bones to be about right.

So start thinking now, you may have quite a few years up your sleeve, you may not. Enjoy the sense of liberation, thinking up a vision of the future free from the shackles of convention.

With nothing more to focus on than producing good food from healthy happy farms that we’ll be proud to hand on to the next generation, and that the next generation will be proud to take over.

39

❚ with rob Cope-Williams

Who decides what’s in good faith?

Employers, it seems, are the subject of a massive wave of victimisation by a number of well-informed workers.

Yes, I know there are some employers who are seen to be ruthless and can outgun others with lawyers when matters get out of hand, but they are few and far between.

The term used in the employment courts and by lawyers who want to ‘sort things out of court’ is Good Faith. That in their context is that both parties acted in good faith, but the employer didn’t fulfil their side of good faith.

So what is the definition of good faith?

Honesty, or sincerity of intention? It seems that is almost as hard to define as how Donald Trump won the USA election.

The reality is that there are a number of professionals who are making a very good living out of taking employers to court for wrongful dismissal.

There is a solid pattern being used. They talk the talk and get a job. Then they take the upper hand and refuse to take instruction from the employer. Walking out of the office or where ever the conversation was being held is very common place. If a conversation is requested they insist on having a witness, or even worse, they walk out and then say to their lawyer that they weren’t allowed a witness.

Work safely Watch for wires Always keep equipment at least four metres from power lines.

Reduce the risk of electrocution and electrical fires on the farm. Please contact Orion to arrange free onsite advice.

Use industry safe working practices: The New Zealand Code of Practice for Electrical Safe Distances (NZECP 34:2001).

Visit our website oriongroup.co.nz or call us on 03 363 9898 or 0800 363 9898 for free advice.

See us at the Banks Peninsula Show Saturday 19 January

January 2019

4m+

From there the rot sets in and the rule of the land with respect to employment law kicks in.

From what I can glean it always ends in tears and not those of the worker. Of the raft of people I know who have paid out thousands of dollars to people they had trusted all have become bitter and cautious.

Sadly if one rings a former employer it results in a very guarded response as often the legal battle is still happening. I’m told the best way to approach a former employer is to simply ask if they’d employ them again. That way there’s no threat of defamation if anyone was to be quoted.

So going back to ‘in good faith’ and, as has been quoted to me on several occasions, the contracts and 90 day trial aren’t worth the paper they are written on. With paper being around $5 for a ream, that says a lot.

We all accept that in some cases workers have been abused in the past, and things did need to be sorted, but what has happened to the old values and how can we stop the pendulum from swinging so far the other way. If you have a good worker, look after them, there are predators out there waiting to take you.

40

January 2019

CANTERBURY FARMING

BORN TO FARM WELCOME TO THE ‘S EFFECT’.

MF S SERIES Introducing the tractors for the new generation - extra efficiency, comfort, safety and style with ease-of-use at the heart of these state-of-art tractors.

Light and nimble for loader operations, the S Series also provide the strength, hydraulic power and lift capacity for heavy duty fieldwork.

MODEL

HP

MODEL

HP

MF 5700 S Series

100 - 130

MF 7700 S Series

140 - 255

MF 6700 S Series

120 - 175

MF 8700 S Series

300 - 370

ALL NEW PERFORMANCE

FOR MORE INFORMATION, CONTACT YOUR LOCAL JJ LTD DEALER JJ Ltd Christchurch 726 Main South Road TEMPLETON Phone: 03 344 5645

JJ Ltd Ashburton 135 Alford Forest Road ALLENTON Phone: 03 307 6031

JJ Ltd Timaru 280 Hilton Highway WASHDYKE Phone: 03 688 7401