The Land 21 August 2014 by Northern Advocate

Thursday, August 21, 2014

Northern Advocate

THURSDAY, AUGUST 21, 2014

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Northern Advocate

Thursday, August 21, 2014

North shareholder reps cut to 3 By Mike Barrington

OMINATIONS have opened for Fonterra director and Shareholders’ Council elections, with boundary changes reducing Northland representation on the council from four shareholders to three. The Shareholders’ Council’s Northern Wairoa ward has been absorbed by the other three Northland wards and the nowexpanded former Whangarei ward has been renamed Central Northland. After the elections, its representative and the newly elected candidates for the Northern Northland and Southern Northland wards will fill the Northland seats on the council. Penny Smart, of Dargaville, who was elected to represent farmers in the Northern Wairoa ward last year, will seek reelection to one of the Northland seats. The Central ward has been held by Alex Wright since 2012 and the Southern Northland ward has been Tracey

Bryan’s for the past two years. Terence Brocx, of Okaihau, has represented the Northern ward since 2008. He is a member of the council’s performance committee, Northland’s representative on Fonterra’s Regional Engagement Group and has been on the council representation committee. The council reviewed ward boundaries to ensure all Fonterra farmers had sufficient local representation. Mr Brocx said the review found nine council members represented South Island farmers, who produced 40 per cent of the Fonterra milk supply, while Northland had four councillors representing farmers producing 6 per cent of the co-operative’s supply. The council had decided to keep the total number of wards at 35. To improve the alignment of representatives to farmers throughout the country, Northland lost one council seat and the Waikato lost two, while Canterbury gained two and Southland one. Due to the boundary changes,

NUMBERS DOWN: Northland dairy farm representation has lost ground with the region’s Fonterra Shareholders Council membership reduced.

PHOTO/FILE

there will be elections for 19 new wards which come into existence after the polls. Shareholders affected by boundary changes can vote for their preferred representative for their new ward. Nominations for the director and shareholder council elections close on September 5 and polling will take place

between October 19 and November 10 with the single transferable vote system used for all voting by internet, fax and post. This year, elections are being held for three directors for Fonterra’s board, two members of the directors’ remuneration committee and 22 members of the Shareholders’ Council.

Fonterra directors John Monaghan and David MacLeod retire by rotation and are eligible for re-election. A board vacancy also must be filled after Jim van der Poel’s retirement. Directors’ Remuneration Committee members Murray Holdaway and Philip Wilson will retire by rotation but are eligible for re-election.

Take shelter . . . you’re going to need it With consumers of our food products insisting on ‘‘free range’’ farming methods, the next big thing is going to be shelter — animal welfare. Have you ever thought how high the body temperature of a black beast may climb on a hot summer day or, conversely, how low a wet animal’s temperature may drop on a windy winter day? Even with good shelter, a few newly shorn sheep are lost each year and new-born lambs die in South Island blizzards. But that is just the tip of a much larger iceberg — how

Bob Cathcart much production is lost in windblasted pasture and by animals fighting off the cold instead of producing milk or stacking on meat? Farm shelter makes good sense. It makes the place where you and your family or staff work more pleasant. But do

some careful thinking before you rush out and plant a tree. Do not commit yourself to something you cannot maintain. Exactly what sort of shelter do you want? Do you wish to block that mean southerly or south-westerly? Is that saltladen westerly off the Tasman adding to your drought problems? Could you achieve both shade and shelter with a few strategically planted poplars, and can they also double as soil conservation or timber plantings?

What other species will grow on your land? Will they compete with or complement pasture production? Are you also wishing to encourage birds or bees? Plan your shelter and select your species carefully. Regardless of what you plant you will need to maintain and eventually replace them. Do you have labour and skills on-farm or will you need to employ contractors? Allow plenty of time to fence, prepare the land and plant the trees. It may pay to spread your

shelter planting over a longer time period so maintenance can also be staggered. If you have a very exposed site you may need to plant a fast-growing species like poplar or willow to act as a ‘‘cover crop’’ for the natives you would really prefer. Shelter planting is a lifetime commitment. Don’t rush in, seek advice and find an easier care solution to your shelter requirements. ■ Bob Cathcart is an AgFirst Northland land and environmental management consultant

EDITORIAL

NATIONAL ADVERTISING

NATIONAL EDITORIAL

Cam Mitchell 09 470 2882, 021 225 9692 cam.mitchell@northernadvocate.co.nz

Mike Barrington 09 470 2837 mike.barrington@northernadvocate.co.nz

Matthew Sherry 021 2710364 matthew.sherry@apn.co.nz

Colleen Thorpe 021 775 005 colleen.thorpe@apn.co.nz

The Land is published every Thursday in APN Regional Newspapers throughout the North Island.

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Thursday, August 21, 2014

Northern Advocate

Boggy legacy of downpours By Mike Barrington The heavy rains causing floods are an ugly memory but Doug and Chrissy Small still have about a third of their dairy farm by Lake Omapere under water. And unless the Lake Omapere Trust comes up with a solution to the flooding at a meeting planned today, the couple appear to have little hope of soon solving a feed shortage which has halted milk production on their farm. Downpours in June and July raised the level of the lake about 1.1m, submerging 80ha of the 242ha farm on Te Pua Rd, near Kaikohe. The Smalls claimed the Maori-owned lake’s sole outlet was blocked with vegetation and debris. A contractor who had cleared the outlet in the past told them it would cost $1500 for a digger to unblock the outlet, which would clear water from their farm in three days. There were also concerns that an an old rock fish barrier near the lake outlet channel was restricting the outflow.

WATERLOGGED: Doug Small reckons a third of his farm remains under water.

The Northland Regional Council estimated the June and July storms had put up to 15.2 million cubic metres of additional water into the 1200ha lake. A river management report

to be considered by the NRC environmental management committee on Monday said it would take 45-55 days to drain the lake level back to pre-July rainfall levels, which was similar to drainage times in the past.

PHOTOS/DEBBIE BEADLE

The old fish barrier was found to be having no impact on the outflow and clearing vegetation from the channel would bring only a minor improvement. “Therefore nothing could be

done to quickly reduce the flooding and clearing of the old fish barrier and vegetation was not justified,” the report said. NRC chairman Bill Shepherd, who had visited the Smalls, said widening the channel would need resource consents and consultation with landowners downstream by the Utakura River, which would take a significant amount of time. Mr Small said the lake trustees had been approached through Northland Federated Farmers and, after a meeting late last month, the trustees had formed a group to approach downstream landowners to gauge their reaction to clearing the lake outlet, which could bring debris down on to their land. The group is to report back to another hui today. In the meantime, 100 of the herd the couple were milking have been shifted to other dairy farms, 140 more cows are being moved this week, leaving only calves, 35 cows being milked to feed them, and about 50 springing cows on the farm.

No, Bruce is busy right now re-inserting a uterus I

T never fails to amuse me when people ring up or call in wanting Bruce and are astonished he’s not here at the house — it’s like they assume once milking is over farmers do nothing with their day but sit and watch the grass grow. Then they ask when he’ll be home which, quite frankly, is a laughable question. The best answer would be “Anyone’s guess!” but that seems a little rude, so I attempt to give them an estimate: “He should be in for lunch sometime between 12 and 4pm . . . or if not, maybe tonight about 8pm, maybe later.” Silence ensues, so I offer his mobile number — although, as he says, if he’s arm-deep calving a cow (or re-inserting a uterus, as he was the other night — he did whip out his phone to take pictures, which I can’t bear looking at), he’s hardly likely to answer his phone. Sometimes, if they tell me what it’s about, I can even help them.

Julie Paton A recent unsuccessful caller was one of our neighbours who needed rescuing from his paddock two days in a row. The first day he sank his tractor into the mud, he rang Bruce, who was out, and ended up having to call a tow truck. The second day, he rang again but Bruce was out again. Luckily, this time a passerby stopped and helped haul him out. He’s decided to stay out of the paddock for the rest of winter, a wise decision I think, given the lack of rescuers available to assist him in his difficulties. Bruce himself almost needed rescuing the other week — he was on the tractor at One Tree Point, and smelled smoke.

“Oh no!” he thought, remembering past disastrous tractor fires, but also thinking, “It’s a bit early in the season for a bird nest in the engine”. He couldn’t see any smoke, until he looked down and realised it was spiralling out from between his legs, which puzzled him. His brain paused for a moment, contemplating this phenomenon, until the synapses fired once more and he realised it wasn’t himself smoking. The wires underneath his seat must have shorted and it was the tractor seat burning. He leapt off with an agility that would have stunned the young hockey player in the team he was playing against last week. He heard this guy say to one of his teammates: “You take him, I’ll go for the old fella”. Bruce was slightly stunned to see him then head his way, realising belatedly that he was the one described as the “old fella”. A sobering moment, and he was quite

cheerful to steal the ball, hit a good pass and then turn to the young guy and say: “Not bad for an old fella, eh?” Only to be met with a slack-jawed teenage stare of incomprehension. Another rescue case is Rocky, the farm dog. I’m not sure where Rocky came from, but I think his previous owners left their farm and couldn’t take him with them. So, somehow, we have ended up with him. He came with a warning that he would only round up one mob of stock and then, obviously feeling he had exerted enough effort for one day, would refuse to do more. This gives him, at best, dubious value as a working animal, but Bruce thought he might suit the smaller herd on our One Tree Point farm. He has since discovered Rocky doesn’t like men — he comes to me and my daughters, no trouble, but as soon as he hears a male voice, everything droops and he refuses to move. Another black

mark. But Bruce has persevered and their relationship progressed to the point where Bruce felt comfortable taking Rocky out on the farm with him one rainy afternoon. They spent a happy few hours, with Rocky seemingly content until just before it was time to leave for home — when he disappeared. Bruce spent a fruitless half hour calling him, and then decided to come home and call the neighbours, so if they found him they would know where he’d come from. Later that evening our farm manager found the wayward creature on the farm, drenched through but quite happy. Lacking any way of tying him up, he shut him in the cab tractor, where he’d at least be dry. By the time Bruce got his jobs done and drove back to the farm, a very sad and sorry little face was pressed up to the window. Maybe he’ll think twice before running off again. Or not.

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The Land

US$/t

6500

GlobalDairyTrade Previous US$/t 19/8/14 Auction WMP 2725 " 2804 AMF 3457 " 3566 Average 3025 ! 3000

Agrifax WMP Price

4500

2500

Jun

2012/13

Sep

Dec 2013/14

Mar 2014/15

North Is. Schedule This $/kg CW net Week P2 Steer " 4.59 M2 Bull " 4.39 M Cow " 3.25

North Island Steer Schedule

NZc/kg (net)

425 375 325

Oct

5Pyr avg

Jan

Apr 2012/13

Jul 2013/14

NZ$/hd (net)

125

North Is. Schedule $/head net Lamb 17.5kg # Lamb 19kg # Mutton 21kg !

North Island Lamb Schedule

100 75 50

Oct

5Pyr avg

Jan

Apr 2012/13

Jul 2013/14

This Week 101.17 109.89 59.48

CHRIS TAYLOR – Agrifax Market Analyst

A settling period is seen as a positive, as it suggests there is support at these levels and it isn’t just a short-term spike, that will just crash back down as quick as it rose. US domestic beef prices have also held steady for a number of weeks now, in the mid 290c/lb range, further emphasising some degree of stability in the market at these previously unprecedented price levels.

Year Versus Ago 5-yr Avg 4.28 +16% 4.03 +15% 3.13 +10%

120

FARMGATE PRICES Last Week 101.17 109.89 63.13

Year Versus Ago 5-yr Avg 96.73 –3% 105.07 –3% 60.32 –4%

Agrifax Log Price Indicator

100 80 60 40 JulP12

JanP13

JulP13

JanP14

JulP14

GRAIN & FEED 500

NZ Feed Grain Indicator

400 300 200 AugP12 FebP13 Aug 12 Feb 13 Milling wheat

AugP13 Aug 13 Feed wheat

FebP14 AugP14 Feb 14 Aug 14 Feed barley

AugP13 39 Micron

FebP14

WOOL 800

Wool Prices

600 400 200 AugP12

FebP13 29 Micron

Lamb

AugP14

NZX DAIRY PGI Last 15 Days

The price rises have come despite Australia pumping large volumes of beef into the US market due to high drought enforced turnoff there. Australia shipped a record high total of beef in July, 12% more than the previous record set only two months earlier in May. An increased proportion, totalling 36,800t, was shipped to the US, the highest monthly total in 10 years.

As at August 18, 2014

The New Zealand dollar has dipped down from highs of US87c-88c to US84c-85c which, combined with high US prices, has helped push farmgate returns higher. Steer and heifer pricing is now at more than $5/kg. The strong US market has pushed the gross bull schedule up to match steers.

The NZX Pasture Growth Index (PGI) is an indicator of potential pasture growth based on three key climatic variables – temperature, moisture and light.

Pasture Growth Index Above normal Near normal Below normal

US Imported Cow

200

800

NZc/kg

Thousand head

Last Week 4.52 4.35 3.21

chris.taylor@nzx.com

4 State Australian Cattle Slaughter (Qld, NSW,Vic & SA)

100

FARMGATE PRICES

Lamb schedules remain flat. Some companies have nudged pricing 5 cents higher in recent weeks but gross rates of about $6.10 remain for lamb. Mutton pricing has eased, as stores in China are heavily stocked. Overseas returns have also come back by about 5%.

UNITED STATES BEEF MARKET PEAKS US imported beef markets have settled at very high levels. Imported prices recorded by Agrifax for manufacturing bull and cow declined by US3c/lb and US2c/lb respectively but this is not a concern for New Zealand exporters following rises of about US70c/lb since June.

Year Versus Ago 5-yr Avg 5124 –23% 4931 –14% 4941 –19%

FORESTRY

US imported beef prices have settled at very high levels, with manufacturing cow and bull meat returns about US70c/lb up on June levels. Schedules lifted 10-15 cents last week, with gross rates including premiums of more than $5/kg now on offer for both steers and bulls.

# OVERSEAS PRICES

SHEEP

Prices showed signs of recovery at the August 19 GlobalDairyTrade auction. Overall prices were buoyed by whole milk powder prices gaining 3%, but were weighed down by skim milk powder prices falling by 12%. Butter and anhydrous milkfat posted gains of 3-5%.

# OVERSEAS PRICES

BEEF 475

FAT PRODUCTS

NZ$/t

# POWDER PRODUCTS

DAIRY

Thursday, August 21, 2014

NZ$/t

Northern Advocate

NZc/kg

600

400 Jan

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5Pyr avg 2014 2013

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

5Pyr avg

2013/14

2012/13

MORE: The information above is extracted from key reports produced by NZX Agrifax, the leading provider of specialist industry data and intelligence on the New Zealand sheep, beef, dairy, forestry, venison, wool and grain sectors. Please contact us to view the full reports. www.agrifax.co.nz | info@nzxagrifax.co.nz

21Aug2014 metservice.com | graphic compiled by

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Thursday, August 21, 2014

Northern Advocate

Business writers Fran O’Sullivan and Alexander Speirs call the shots here every Thursday

Fast net a game-changer OPINION

Prior to the roll-out of the Rural Broadband Initiative, only 20 per cent of rural homes and businesses had access to broadband. By the end of 2016 that number will have risen to 86 per cent

with FRAN O’SULLIVAN

RINGING New Zealand into the digital age has been a top priority for the Government. The Ultra Fast Broadband scheme to bring fibre optic internet to the home in urban areas is well under way, but the rural sector isn’t being left in the dark ages. The Rural Broadband Initiative is now two-thirds complete and stands to be a gamechanger for our agriculture sector. Prior to the roll-out, only 20 per cent of rural homes and businesses had access to broadband — a necessity to remain competitive in the 21st century. By the end of 2016, that number will have risen to 86 per cent. For the first time, the internet will have the potential to be used as a serious tool in agribusiness and the sector needs to get with the programme. For those able to access fixed line rural broadband, only 22.6 per cent of homes and businesses have connected. The internet has been transformative for business, regardless of industry, size or sector — and agriculture should be no exception. Already we are seeing the emergence of specialist farming technologies and software packages, which stand to change the face of farming in New Zealand. Real time monitoring and precision agriculture stand out as two technologies that could make an immediate impact on the margins for farmers. Using GPS technology, precision agriculture calibrates and maps exactly where fertiliser has been dropped and what is outstanding. The net evolution of this is self-driving tractors, currently being prototyped in the United Kingdom. The internet of things is quickly evolving and will continue to reveal a more comprehensive picture in terms of what’s going on across the farm at all times — be it production statistics, animal welfare or even

the environmental footprint produced. The data collected can be used with analytics software to derive new insights and efficiencies across the farm. Xero have taken the lead on the software front, rolling out its new specialised Farming in the Cloud programme earlier this year. The product merges traditional financial and farm management software and takes

FOR THE FIRST TIME, THE INTERNET WILL HAVE THE POTENTIAL TO BE USED AS A SERIOUS TOOL IN AGRIBUSINESS AND THE SECTOR NEEDS TO GET WITH THE PROGRAMME.

it one notch up, integrating real time data which links through to suppliers and key stakeholders. There is the potential for major change at a macro level too — particularly for innovation around food safety. Increasing connectivity along supply chains should enable real-time farm to fork traceability, improving New Zealand’s ability to mitigate risk and react faster in times of crisis. Improvements in efficiency and traceability are measurable, but the intangible benefits could be substantial. Increased access to the outside world has been cited as one way to help attract more young talent for an industry in dire need. “It certainly helps attract workers on to the farm when they can feel more connected back to the rest of the world,” says Communications Minister Amy Adams. The possibilities available will drive people back to rural communities by bridging the connectivity divide. “With internet connectivity, location becomes much less of a factor. We could be people living in the most remote corner of New Zealand developing the next big apps for the app stores or feeding into a major global business on the other side of the world. The opportunities opened up are immense.” It’s long overdue our most productive industry truly gets on board and embraces the smart economy. The message was loud and clear when the rural sector cried foul after being excluded from the Ultra Fast Broadband scheme. Now that rural broadband is here, it’s time for the sector to front up and get on board. Fran O’Sullivan is a business columnist for the NZ Herald and Alexander Speirs (right) is a business journalist for Herald Business Reports

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RURAL PROPERTY

with TONY VERDON

Thursday, August 21, 2014

Cheaper Northland prices luring out-of-towners Keen buyers are moving north and an even greater number of the province’s farms are expected to sell in the coming year

CHANGING HANDS

AIRY farming in Northland is undergoing the biggest shake-up the sector has seen in more than 50 years with a wave of outsiders taking advantage of comparatively cheap farmland. Northland dairy farms are being valued at about a quarter of the price of some properties in regions such as the Waikato and Taranaki. In the past 18 months $20 million of Northland dairy farms have been sold to Waikato, King Country, Taranaki, Canterbury and Westland farmers moving into the province. The sales were brokered by real estate agency Bayleys, which expects the trend to accelerate this year. Bayleys showed more than half the properties sold on a national roadshow last year, presenting copies of a portfolio showcasing the farms presented at seven industry seminars. The company will replicate the Northland Dairy Expo this spring, and expects even more of the province’s farms will be bought by out-of-towners. Bayleys Northland rural manager Tony Grindle said the company planned to take more than a dozen Northland dairy farms on an expo designed to showcase the best of Northland dairy units through a week-long road show to Hamilton, New Plymouth, Palmerston North and Auckland. “The motivation is simply about the economics of dairy farming — and the price of quality primary productive land in Northland compared to most other parts of the country,” Grindle said. “Last year we took 11 Northland dairy units on the roadshow and all of those available sold. So

Northland dairy farming units which changed hands to out-of-towners in the past year included: ■ A 292ha Pouto dairy farm milking 600 cows, which sold to Taranaki buyers for $3.7m. ■ A 370ha Ruawai dairy farm producing 220,000kg of milk solids bought by a Canterbury farmer for $7.3m. ■ A 283ha mixed-use beef and dairying unit at Matakohe bought by a Canterbury farmer for $2.7m. ■ An 80ha Ruawai dairying unit sold to a Canterbury farmer for $2.8m. ■ Whangarei and Maungaturoto farms sold to buyers from the Waikato. it was a proverbial no-brainer to do it again this year.” There was stronger interest this year from Northland farmers wanting to promote their properties to buyers from traditional dairy areas elsewhere in the country. Grindle said that, generally, most young Northland farmers wanting to get into the dairying sector simply didn’t have the financial muscle being brought to the region by out-of-town buyers who were selling their high-value units in New Zealand’s most productive pastoral zones. Real Estate Institute figures show the average cost of dairy farms in Northland was $15,555 a hectare. By comparison, the REINZ figures show the average cost a hectare of dairy farms in

North Island seminars promoting

Dairy Farms in Northland Dairy farms for sale North of Auckland

Spring 2014

THE MOTIVATION IS SIMPLY ABOUT THE ECONOMICS OF DAIRY FARMING — AND THE PRICE OF QUALITY PRIMARY PRODUCTIVE LAND IN NORTHLAND COMPARED TO MOST OTHER PARTS OF THE COUNTRY.

the Waikato was $49,000 and in Taranaki was as high as $55,000 an hectare. Grindle said reasons Northland farmers had chosen now as a

■ A 425ha Aranga farm sold to a King Country buyer for $2. 7m. ■ A 285ha Dargaville dairying unit sold to a buyer from the West Coast of the South Island for $1.33m.

good time to sell their properties included the drop in Fonterra’s forecast milk solids payout for the 2024/15 financial year, a lack of succession planning for some older farmers looking to retire, and the second consecutive dry season for those in the western coastal region of Northland, and “it just being the right time for those individuals and families that have been weighing up their options for the past few seasons”.

Expose your dairy farm to the best buyers at our North Island Dairy Expo • Your local Bayleys Country agent promoting your property directly to buyers in the Waikato, Manwatu and Taranaki regions. • Outstanding success – 2013 Seminar attendees are saying “bring us more”. To achieve a premium value your dairy farm must receive the best promotion. To ensure your property is featured contact your local Bayleys agent or Tony Grindle, Manager, Bayleys Whangarei on 0800 80 20 40, M 021 432 308 or tony.grindle@bayleys.co.nz

Mackys Real Estate Ltd, Bayleys, Licensed under the REA Act 2008

Thursday, August 21, 2014

Northern Advocate

Rural radio personality Dominic George vents his views here every Thursday

COMMENT

Politics: The zealots wind me up I

with DOMINIC GEORGE

LOVE me some dirty politics, but I can't abide zealots; and we've seen both come to the fore over the last week. With just under a month until the general election, the campaign is starting to get interesting. I'm making an attempt to read the Hager book, if for no other reason than to be informed. I suspect many reporters and interviewers have asked, and will ask, questions of politicians and hangers-on about the claims made in the book without having read it. You would be staggered at the lack of background reading and information gathering employed by some in our national media. It's like trying to put up a fence without the posts. I try to make it a general rule never to interview an author or subject of a book if I haven't at least attempted to read it — it's more common courtesy than anything else. The sad part is authors are generally surprised when they learn I've read their work. Deputy Prime Minister Bill English, Labour's Primary Industries spokeman Damien O'Connor and New Zealand First leader Winston Peters have all told me this week on the Farming Show that people aren't interested in gratuitous mud-slinging and would rather hear about policy. No one's buying that line at all. People choose who they vote for based on a range of things, and personality is one of them. Do I like that bloke or this bloke? Women are serial offenders here — they make decisions based on “look” and “feel” all the time. That's just how we're hard-wired. That's why credibility is attacked — if people didn't care about personality and were only interested in

IDEALS: Winston Peters is wrong to say voters just want to know policy.

policy, it wouldn't matter what they did outside of their brief in the strictest sense of the term. Let's be honest, the only policy we really want to hear is the one that tells us how much more money we're going to get from one lot or the other. It's all very well to sit back and tut-tut over the squabbling politicians, and maybe there's a perception this election could be more spiteful and nasty than normal. But politics, by its very nature, is a dirty game. In fact, it's downright bloody filthy. Nothing much has changed except the manner in which the information is divulged. Those of you on the wrong side of 40 may recall the ‘‘Moyle affair’' of 1977. I wasn't around then,

but I've learned that Colin Moyle was widely regarded as one of the best Ministers of Agriculture this country had ever seen. But when Prime Minister Robert Muldoon learned he may replace Bill Rowling as party leader, he accused Moyle in Parliament of having been questioned by the police on suspicion of homosexual activities. Those said activities were illegal at the time and Moyle eventually resigned because, he said, ‘‘the whole thing just made me sick’’. Filthy but effective politics. What's equally grubby, but a whole lot less intelligent, is the choosing of political parties like a sports team. The amount of sycophantic blind loyalty shown to political parties is absurd in the extreme. I've seen it on all sides over a long period of time but it's become glaring in the past week. There's nothing wrong with saying you want a particular side to win for whatever reason, but making excuses for every mistake they make and criticising opposing parties based on some perceived ideology is so brainless it should preclude these people from voting on the grounds of extreme stupidity. If a party on the other end of the political spectrum makes a good point, it won’t kill you to admit it; you can still vote for whoever you want. Equally, if your party proposes or does something stupid or skulduggerous there's no harm in being able to acknowledge that either.

O T Y T R E P O R P R U O Y WANT FROM THE HERD?

STAND OUT

It’s a great property, thanks to a lot of hard work. Now you’re selling, you want your place to be the one that gets all the attention and interest. Our skills in marketing rural properties to their best advantage are widely acknowledged. This expertise can often make the difference between a very good result and a great result. Since 1999, Bayleys Country magazine has been the ‘go to guide’ for those serious about purchasing rural property in New Zealand. It holds a unique position in the market, with a reach that is second to none. Bookings for the Spring edition are closing soon. To find out more about Country magazine, and to ensure your property stands out, contact Tony Grindle on 0800 80 20 40 on tony.grindle@bayleys.co.nz. Mackys Real Estate Ltd, Bayleys, Licensed under the REA Act 2008

Dominic George hosts Farming First, 5am-6am weekdays on Radio Sport.

Northern Advocate

Thursday, August 21, 2014

THE INNOVATORS Dean Taylor looks at Kiwis’ latest inventions, among them a system that allows farmers to irrigate land without waste

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This year at National Fieldays, selected innovators were invited to pitch their products in a Dragons’ Den-type event to seek further investment. One of the successes was Greg Morgan, founder of LiquidStrip, who won the Gallagher Brilliant Simplicity award and took away $3000. LiquidStrip is a continuous filtration system designed to efficiently separate liquids and solids from waste, such as shed effluent. Gallagher research and development director Rob Heebink was impressed with the LiquidStrip solution, labelling it a “brilliant piece of engineering that solves a major environmental issue in the dairy industry, with crossover into other sectors”. Mr Morgan said the award was a wonderful achievement for LiquidStrip. “It is no easy task to start up a business and be a part of the wider solution via innovation. The team at [start-up supporter] SODA and Fieldays are key to how far individual entrepreneurs can take their product or service in this competitive industry — it is amazing to be a part of,” he said. Mr Morgan’s invention removes solids from wastewater and converts them into pellet or slug form by passing unwanted liquids through a filter that uses patented technology to transform waste into useful solids. Mr Morgan has been part of the wine industry for more than two decades and initially came up with the idea when he saw how much water was wasted in the wine-making process. He says the juicing method of winemaking uses about seven litres of water to make one bottle of wine — and some processes use even more. As someone who describes himself as a tinkerer, and also enjoys working on motorsport and boating equipment, the LiquidStrip is just one of a number of inventions. His aim is that the benefits will reach far beyond just wine-making and dairy farming and eventually be used to create fertiliser. After its success at Fieldays, Mr Morgan’s invention has caught the eye of industry heavyweights and has also been nominated for the New Zealand Innovators Awards in three categories: ■ Innovation in Design & Engineering. ■ Innovation in Sustainability & Cleantech. ■ Innovation in Agriculture & Environment. The LiquidStrip has been patented and is in the early stages of development for market in partnership with respected companies. Mr Morgan is hopeful potential partners will be attracted by a win at the event ceremony in Auckland on October 15.

Thursday, August 21, 2014

Northern Advocate

Bumper avo crop expected The avocado industry is gearing itself up for a bumper season with a record seven million trays forecast and exports already under way. New Zealand Avocado CEO Jen Scoular said the export season had started with limited volumes of the new season’s fruit harvested and shipped. ‘‘We have an industry requirement that all export fruit prior to the main season is independently tested to ensure it meets a maturity test. So only a limited number of orchards will have reached maturity before the main export season starts in early September.’’ There was a ‘‘very large’’ crop on the trees and Bay of Plenty growers had experienced a good season, she said. ‘‘This season has been a very good growing season. Avocados are prone to frost and storm damage, so the storms in Whangarei in late July and an early frost in May, may have resulted in a small amount of damage.’’ The yields and volume forecasts are up, she said. ‘‘We have a very large volume ahead of us. The crop estimate for the 2014/15 season is over seven million trays, with an expectation of nearly five million being exported and the remainder, selling as fresh fruit or being processed in New Zealand. Our

EXPORTS: Jen Scoular said the export season had started with limited volumes of the new season’s fruit harvested and shipped.

previous high was 6.2 million trays in 2011/12.’’ Last season 3.1 million trays of avocados were exported. ‘‘We are excited about increasing activity and volumes to Asian markets particularly Singapore, Japan and Thailand.’’ The biggest challenge growers faced was high and low volume swings — but research and development programmes were under way, she said. ‘‘We are working closely with scientists from Plant & Food Research and with growers to understand what is driving the best performing orchards.’’ A collaborative approach to industry activity was the best way forward to drive growth and profitability, she said. Its Primary Growth

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Northern Advocate

Thursday, August 21, 2014

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Follow home kill rules With summer looming and the prospect of barbecues, hangi and outdoor feasts, Iain Hyndman explores the rules around home kill meats. A home kill operator has warned of the substantial penalties for ignoring the rules around a practice most Kiwis grew up with. Anthony Hanna, who operates Anthony Hanna Home Killing and Processing from Wanganui, said many New Zealanders grew up knowing farmers who could supply tasty morsels to mates or relatives. With the price of meat now much higher, the practice may not be so common but it still happens. “We all knew someone back in the day that could sell a bit of meat, but in today’s environment that’s frowned upon,’’ Mr Hanna said. “The rules around home kill product is clear and the fines for breaching them can be harsh. Individuals face fines of up to $100,000 and two years imprisonment, and corporations face fines of up to $500,000. “We have been operating for 11 years out of our shop in the Aramoho Shopping Centre and since then I’ve come to realise just how serious being caught out can be — it’s not pretty. “We employ three full-time staff, a full-time butcher in the shop, and an on-farm slaughterman who travels to customers’ properties to slaughter animals to bring back to the shop for processing and meat packing.”

MESSAGE: Home kill operator Anthony Hanna warns of the hefty penalties for breaching the rules. PHOTO/APN

Home kill – the basics ■ Home kill is undertaken by the animal’s owner only. You can: ■ Kill the animal yourself on your own property, including property you lease or have other legal right to occupy. ■ Hire a listed home kill or recreational catch service provider to slaughter and butcher the animal. To use a service provider, you must have been actively involved in looking after the animal on a day-to-day basis for at least 28 days prior to its slaughter. ■ You are legally obliged to ensure the animals are cared for appropriately, transported humanely and killed in a way that does not inflict unreasonable or unnecessary pain or distress. Home kill cannot be: ■ Sold, bartered, raffled or donated for use as a prize at events such as those held at a school, church, club or fair. ■ Used by institutions such as boarding schools, universities, hospitals and prisons. ■ Served to paying customers. Home kill can be served on a marae for traditional activities within the iwi or hapu. By-products (such as hides, skins, antlers and waste material such as fat and bone) can be sold or disposed of to a renderer or tannery.

— APN News & Media

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Thursday, August 21, 2014

Northern Advocate

No proof needed to be ‘organic’

For advice on your farm contact our team: Far North: James Tattersall - 09 430 4915 KeriKeri: Peter Stott - 09 430 4911 Whangarei/Dargerville: Kylie Mounter - 09 470 3325, Nicola Smith - 09 430 4874

By Iain Hyndman

The gap between public perception of the term organic and actual certified organic operations is wide. Independent Wanganui agricultural fertiliser broker Robin Casey says there are many misconceptions in the public arena in his experience. “For a start, there is no specific regulation in New Zealand protecting the word ‘organic’ so it’s ‘buyer beware’,” Mr Casey (pictured) said. “Products can be labelled as ‘organic’ without any requirement to prove this through certification.” Certification under New Zealand’s two accredited agencies — BioGro and AsureQuality — provides an independent validation of a producer’s organic claim. To be certified organic by either, producers must document a full management plan and record all inputs used in their production. Producers are audited at least annually to verify that they comply with their high organic standards. This gives them the right to use either agency trademark which is trusted throughout New Zealand and the world. Mr Casey said organic-certified producers were not allowed to use synthetic products for grass growth, herbicides, insecticides or animal health. He has an interesting theory that perhaps applies to both mainstream and organic producers. “I am personally an advocate of organically-produced foods and don’t mind paying extra for it, but all may not be what it seems,” Mr Casey said. “Mainstream farmers can add products to their pastures to rectify imbalances in trace elements and nutrients essential to animal health, where organic farmers are somewhat limited. The same applies to arable producers and ultimately it comes down to human health because we get many of our needs from that produce.” He used selenium and iodine as examples. “Selenium or iodine isn’t essential for grass growth, but it is to animal and human health. Unless farmers test for imbalances they would never know. What I do know from experience is that selenium and iodine will definitely be deficient in soils and herbage and needs to be applied. “Both mainstream and organicallycertified farmers are as guilty as each for not testing, so unless humans are taking supplementary health pills, they are probably missing out on some essential trace elements or nutrients.” According to AsureQuality, organic farming is a holistic system of agriculture. The founding premise of organic farming is that optimum soil management will produce healthy crops and livestock in a sustainable manner. Mr Casey said that was all very well, but only if farmers were carrying out soil or herbage analyses to determine imbalances and then rectify them. Organic practices aim to respect all life and embrace biodiversity by conserving and minimising negative impacts on the natural environment. Under AsureQuality accreditation, the time taken to become fully organic depends on the nature of the business. A guideline would be up to two years for livestock, two years for annual horticulture crops and three years for perennials (subject to variables such as the nature of the property). Farms in a transitional stage and that have been using some organic practices for 12 months or more may label their products as “conversion to organic”, provided all requirements are met.

— APN News & Media

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Northern Advocate

Thursday, August 21, 2014

Demand drives export rise Over the next five years meat and wool exports could rise by 22 per cent, with a large demand from Asia and high prices because of a globally constrained supply of beef and lamb Beef + Lamb New Zealand is riding the wave of China’s growing economy and the nation’s appetite for Westernstyle meat diets. The Situation and Outlook Primary Industries report said rising demand for red meat was putting pressure on worldwide demand. Dairy farming expansion also continues to threaten the meat industry but productivity improvements and average carcass weights of slaughtered animals were expected to offset declining herd and flock numbers. The report estimated meat and wool export values would reach $8.2 billion by June 2015 and increase further to $9.4 billion by 2018. Over the next five years exports were expected to increase by 22 per cent, driven by high prices from a globally constrained supply of beef and lamb and mounting demand from Asia. China was now the most significant market for New Zealand’s meat and wool exports. Although the US remained New Zealand’s largest market for beef, accounting for almost half of all exports. In its Agricultural Long Term Projections, the US Department of Agriculture forecast Asian beef imports to more than double to 3.9

million tonnes by 2023, with most of its growth occurring in the Chinese and Hong Kong markets. However, New Zealand would not be able to greatly lift total export volumes to take advantage of that but volumes could be diverted away from certain markets that had higher tariffs or unfavourable exchange rates compared to its competitors. Over the next 12 months, beef export prices in US dollars are forecast to remain high because of droughts in Australia and America. Beef + Lamb NZ chairman James Parsons said it planned to increase awareness about grass-fed beef. Education was the key focus with its biggest customers, he said. “We are working with local importers to target premium restaurants in key cities to run joint promotions to increase the awareness and exposure of NZ grass-fed beef with consumers. “This includes educational workshops, cooking demonstrations, recipe development and correct handling techniques for those cuts that dominate the China market.” Local importers were targeted by premium restaurants in key cities to run joint promotions and the retail sector was utilising in-store tasting

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platforms alongside incentives and information on New Zealand grassfed beef, Mr Parsons said. Productivity was being improved behind the farm gate through breeding and selection, pasture and forages and farming systems, he said. The People Powered Capabilities Report has suggested the red meat and wool industry would need 5100 fewer people by 2025. In 2012, 36 per cent of the red meat and wool workforce had a formal qualification and by 2025 that was expected to increase to 55 per cent. The industry was likely to need to find an additional 32,700 trained workers

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to replace the natural attribution of workers. The qualifications most likely to be in demand are likely to be in the engineering field of study, the report said. Mr Parsons said it was never pleasing to see a decline of workers in the sector. “The level of decline is decreasing but it’s good to see that the workforce over all in the Primary sector is increasing. “As the report shows our sector will lose over 32,000 through natural attrition, therefore we have to work with the next generation to attract, develop and retain talent. Our focus will be on ensuring qualified people are coming into the sector. “The Red Meat Profit Partnership has a programme of work focusing on attracting, developing and retaining talent, that will roll out in the next couple of years.” Export returns from the primary sector were estimated to have hit $37.7 billion in 2013/14 but were forecast to fall to $35.8 billion in 2014/15, rising steadily over the next three years to hit $40.8 billion in 2017/18. Dairy now accounts for 46 per cent of total primary industries export value and 35 per cent of total New Zealand merchandise export value, according to the ministry. High prices for dairy in 2013/14 were supported by other products such as logs, meat and aquaculture, but were partly offset by a higher dollar.

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Thursday, August 21, 2014

Northern Advocate

MIE awaits study to formulate strategy By Laurel Stowell New and independent research on New Zealand’s meat industry should clarify whether it will be to farmers’ advantage to have more control over it, Meat Industry Excellence (MIE) chairman John McCarthy says. The research is to receive funding of $219,000 after members of Beef + Lamb New Zealand voted for a business plan put forward by MIE. Mr McCarthy would not say who will do the research, but said it should be finished by mid-September. He is an Ohakune sheep, beef and tourism operator and also has agricultural interests in Australia. Last week he was out crutching in rain that was threatening to turn to snow at his farm under Mount Ruapehu. The research MIE has commissioned will focus on three areas — farmers committing their stock to processors, best practice in processing and the synergies of co-marketing. Mr McCarthy said 25 to 30 per cent of stock was not committed to any particular processor. Farmers simply sold where they got the best price. “Farmers A and B always like to say ‘I got five cents more a kilo than you did’ when they are leaning on the fence and talking to each other.” Having all stock committed in advance would help the planning of processors and farmers, he said. Processor best practice is to be assessed by looking at the practises of 16 to 26 processors nationwide. It will include an assessment of whether there is any

advantage in having “third-party traders” who buy stock from farmers and sell it on to processors. Then there’s the possible cost advantage of processors marketing cooperatively rather than competitively. “You’ve got five or six major companies competing for supply into those supermarkets. It might be better to have a single entity.” Mr McCarthy said the relative costs will be interesting, and farmers would be able make up their own minds when they were known. MIE began in March last year, in response to the perceived parlous state of New Zealand’s red meat industry, especially sheep farming. Since then it has held meetings nationwide and attracted $40,000 in donations from individual farmers. It endorsed three people who have been voted on to the boards of the two biggest farmer-owned meat processors, Silver Fern Farms and the Alliance Group, which process 55 per cent of the country’s beef and lamb. It intends to endorse candidates in this year’s elections too, but is no longer pushing for a merger between the two cooperatives. “Now we are saying bigger is better, and less is more,” Mr McCarthy said. Farmers were getting better prices for their meat now, but Mr McCarthy said that was because demand from China had increased and not because the industry was working better. He insists that farmers still need to consider reform.

The rationale behind a community owned vet practice is just as applicable today as it was 54 years ago when established by a group of farmers in the Otamatea region. Our club is service orientated, not profit driven, and therefore our flexibility can be utilised to suit the farming environment and the needs of our clients. The forecast reduction in dairy payout this season means there will be farmers that face stress imposed by their constrained financial position. Our club is structured to provide the necessary services and negotiable terms so those vital animal health issues can still be addressed, providing residual benefits for next

OLD MACHINE OR NEW ONLY GENUINE PARTS & LUBES WILL DO

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— APN News & Media

The Vet Centre — Community Owned Advertorial

LEADING THE CHARGE: Ohakune farmer John McCarthy says sheep and beef farmers could be getting better returns. PHOTO/FILE

season when the financial situation may well be improved. A benefit of our veterinary practice being a club is that all members can contribute their opinions and ideas as to the service and style of business we run The Executive Committee, the governors of our club, is a democratically elected body that has the responsibility of overseeing the business activities and ensuring compliance with the constitution of the Club. The AGM for The Vet Centre is being held on 23rd September. The performance of the Club will be discussed, and the financial statements as circulated to all members will be analysed. This forum allows transparency of the business procedures and protocols, something not available in private practice. We urge all members to attend and participate in the AGM.

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Northern Advocate

Thursday, August 21, 2014

Southerners stand out in shearing No.8 WIRE with DOUG LAING

There’s a huge southern influence in the four master’s awards decided at the annual meeting of Shearing Sports New Zealand. Accorded master shear status were champion multi-breeds machine shearers Nathan Stratford, of Invercargill, and Tony Coster, of Rakaia. A new master woolhandler is Joel Henare, who is from Gisborne but grew up in the Cromwell area, and Brian Thomson, of Christchurch, has been named a master blade shearer. Stratford and Coster are two of the country’s top multi-breeds shearers, having each won the PGG Wrightson National final in Masterton and the New Zealand Shears Circuit final in Te Kuiti. Stratford won the national this year and Coster has won that title three times. Thomson has shorn the individual and teams blade shearing finals at three consecutive World Championships and Henare is the youngest to ever get a master’s, having won the World Woolhandling Championships in

2012 at the age of 20. More than 60 machine shearers have been accorded master status since the awards were introduced at the Golden Shears in Masterton in 1975. The woolhandler category was introduced in 1991 and Henare is the 22nd recipient, and Thomson becomes the 19th master blade shearer since 1999. Awards recognise very high standards in the competition and workplace platforms and require a vote of at least 80 per cent of delegates at the conference. There were no recipients last year.

BE ENTERPRISING Women of the land are being encouraged to enter the Enterprising Rural Women Awards. Entries for the sixth annual awards close on September 5, and Rural Women president Wendy McGowan says the aim is to grow dynamic communities and “giving a boost to women in rural business is a very positive way of achieving this”. The awards attract diverse entries, and past winners include a traditional-style cheesemaker, a farm walk and homestay enterprise, a forestry trucking company, and a merino sock manufacturer.

BIOLOGICAL TRIUMPH Central Otago farmer David Crutchley has won the supreme

TOP MAN: Tony Coster is one of the country’s best multi-breeds shearers.

Healthy Soils Green Agriculture Innovation Award at the national biological farming awards announced in front of farming audiences in twin events at Rotorua and Christchurch. Judges said the success was a

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Decision-making on flood-damaged farms Rural Support Trust assistance available Dargaville Vets - animal health and wellbeing Northland Seeds - suitable cropping/ re-grassing options for silted paddocks + And, Plus, hopefully, a special guest whoguest has had + a special who has first-hand experience of flood situations situations.

testament to Crutchley’s outstanding results with crop and animal production and health on his 6000ha Shortlands Station. Crutchley is a former champion dog trialist on the popular 1980s TV feature The Dog Show.

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Thursday, August 21, 2014

Northern Advocate

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877 Pipiwai Road RD6, Whangarei Ph: 09 433 7105 – 027 432 6429 e: earle.tito.eng@gmail.com www.earletitoengineering.co.nz

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EMAIL: dispatch@tractatranz.co.nz • www.tractatranz.co.nz PHONE (09) 437 1003 OR 021 443 951 • FAX (09) 459 1276

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Northern Advocate

Thursday, August 21, 2014

Bumpy ride ahead for rural roads Although there is some immediate relief for underfunded rural roads on its way, Federated Farmers feels that regular increases will be needed to avoid a major shortfall

HE Government has announced an increase to investment in our deteriorating rural roads, but Federated Farmers has concerns as to whether it will be enough. “A proposed increase of 4.3 per cent per annum for local road improvements, and a 2.4 per cent increase for local road maintenance, is long overdue but it remains to be seen whether it is enough.” says Katie Milne, Federated Farmers Local Government Spokesperson. “To date, the investment in our rural roads has not kept up with inflation and it is evident in each

WITH THE EXTREME WEATHER CONDITIONS, MORE TRAFFIC THAT IS HEAVIER AND WIDER, OUR RURAL ROADS ARE NOT COPING

pot hole and/or goat track that farmers, families, school buses and contractors navigate everyday. “We are pleased this is now being addressed but is it a sufficient recognition of the importance of roading to an economy reliant on primary production, and in turn its long rural roads? “With the extreme weather Katie Milne conditions, more traffic that is heavier and wider, our rural roads are not coping. If investment in roading maintenance doesn’t keep pace with roading costs, which are forecast to increase significantly, we’re looking at a major shortfall in roading maintenance budget over the next decade. “Whilst the increase in maintenance and improvement costs appears to be reasonable, the Society of Local Government

ROUGH WAY: Roads with less traffic need looking after.

Managers (SOLGM) ‘Forecasts of Price Level Change Adjustors 2013 Update’ has roading costs increasing at around 3.5 percent per annum until 2023. “We have identified the economic value in investing in our ‘Seven Roads of National Significance’, now we need to do the same with our rural roads.

Increasing our investment here will keep our input, output, and processing and export costs lower, keeping us competitive in the export markets. “Whilst our industry grows, so should the investment in our infrastructure. Investment here is an investment in economic returns,” concluded Milne.

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