Thursday, June 26, 2014
Northern Advocate
15
THURSDAY, JUNE 26, 2014
RURAL
NEW TODAY
FRAN O’SULLIVAN
talks Fonterra PROPERTY UPDATE ■ EXCLUSIVE COLUMN FROM RADIO HOST DOMINIC GEORGE MF GC 1705
MF 4600 SERIES
Tractor from just$13,995 + gst
with FEL from just $53,995 + gst
offer is only available while stocks last, and for a limited time GET MORE TODAY! SEE YOUR NEARST FOR AN UNBEATABLE MATESMASSEY RATEFERGUSON SEE ONEDEALER. OF THESE DEALERS TODAY:
Bryant Tractors
38 Rewa Rewa Road, Whangarei 09 438 1319
Renton Tractors & Machinery
3 Clifford St, Kaikohe 09 401 0313
Northland Machinery
104 Jervois St, Dargaville 20 Port Albert Road, Wellsford 09 439 3333 09 423 7736
Terms and conditions apply – only white stocks last
16
Northern Advocate
Welcome to our new rural section Today we launch our new liftout, The Land, celebrating our all-important primary sector. The Land will be part of your Northern Advocate every Thursday. In this first edition we feature a monthly rural property update, with former Advocate editor Tony Verdon finding out that an easing of the soaring price of dairy farmland is being welcomed. Advocate rural editor Mike Barrington also celebrates the success of Northlanders on page 17 and 18. And every week, Fran O’Sullivan will turn her analytical eye to the politics, business matters and current affairs that are having a bearing on our rural economy. A full page of data from Agrifax and the MetService will gather together vital weather, climate and market information, and, on a lighter note, rural radio’s Dominic George will muse each Thursday on life, sport and goings-on down on the farm. In the weeks to come we’ll be exploring the questions posed for the rural sector by the upcoming general election, we’ll look at how quality issues and food scares are threatening New Zealand’s global reputation, we’ll check out how beef and lamb are riding the wave of China’s growing economy and much more. Let us know what you’d like to see covered in The Land. Our team of rural specialists will be pleased to hear your feedback. — Craig Cooper Editor
Thursday, June 26, 2014
COMMENT by DOMINIC GEORGE Rural radio personality Dominic George will air his views right here every Thursday
Oh ... oh ... my eulogy was a little unnecessary But sometimes our mistakes aren’t as bad as we fear, and change is not always for the worse. I heard a great story last week from the godfather of New Zealand broadcasting, Keith Quinn. It was 19 years to the day since he uttered his famous line as All Blacks wing Jonah Lomu ran over England fullback Mike Catt en route to a quartet of tries in the 1995 World Cup semi-final at Newlands. The “Lomu . . . Oh, Oh . . . ” line was actually more accident than design. Quinn was searching for a pre-prepared line he’d included in his match-day notes for the broadcast but failed to locate it in time, hence the “Oh, Oh”. He says it wasn’t entirely the product of a lost piece of paper, as Lomu’s effort that day did leave many people lost for words, but it certainly wasn’t entirely spontaneous either. It has become one of the best known pieces of Kiwi sporting commentary — ironic as it was twothirds “sounds’’ rather than words. What it shows is that blunders aren’t always costly and can, in fact, work in your favour. A few weeks ago, The Farming Show received a text that read: “Jamie, Friday was a sad day for Sheep Farmers of NZ as we have Lost a Gr8 Scientist Dr Julie Everett-Hincks who worked for Agresearch. As you can see, it’s pretty sombre stuff — a eulogy by text, if you will. I read the text out and then
pontificated in suitable tones along with host Jamie Mackay as to the terrible nature of someone being taken before their time. Turned out, however, it was simply Everett-Hincks’ last day at work. I can only imagine what her family and friends went through as they digested the information. I did manage to track her down, though, and can assure you she’s very much alive. I managed to get a very good interview in which she spoke openly of her redundancy from Invermay and that she is now starting a new chapter in her life. There has been vociferous and vocal opposition to the AgResearch restructure, incorporating the relocation of jobs from Invermay and Ruakura to centralised “hubs’’. The protests have been well orchestrated and consistent but ultimately have failed in their objective. Save for the occasional concession, especially in relation to deer research at Invermay, the proposal has been given the green light. The majority of those who have voiced an opinion on this matter in a public forum have overwhelmingly stressed it’s a mistake, plain and simple. They have been forthright in their opinion that it will lead to some of the best and brightest this
country has to offer plying their trade elsewhere or quitting the profession. They may well be right, given the seemingly iron-fisted approach with which the restructure has been implemented and despite even AgResearch’s own change management team recommending Invermay be enhanced rather than downsized. But, as we’ve seen, it doesn’t follow that the result will ultimately be a negative one. As Federated Farmers’ president-in-waiting, Dr William Rolleston, says: “We must not become sentimental over tired bricks and mortar.” There’s always a degree of sentimentality when it comes to change. Heck, I was engulfed with pangs of nostalgia when they started turning Carisbrook to rubble, despite the creation of the country’s best stadium across town. Many thought that was the biggest mistake in the history of Dunedin. Some still do, but there is no better place in New Zealand to watch the national game. Put simply, a mistake doesn’t necessarily manifest in failure. And by the way, the line Keith Quinn was going to use when Jonah scored “that’’ try against the Poms: “All muscle and pump.” Not bad.
Dominic George hosts Farming First, 5am-6am weekdays on Radio Sport.
BLUNDERS CAN, IN FACT, WORK IN YOUR FAVOUR.
CONTACT US ADVERTISING
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.
WHANGAREI
WITH JAMIE MACKAY: 12pm-1pm weekdays
729AM
Thursday, June 26, 2014
Northern Advocate
17
Chloe has fashion success sewn up By Mike Barrington Northland student Chloe King took a step toward realising her dreams when she won the Classroom Couture category in the 20th Ag Art Wear contest, at the National Agricultural Fieldays in Hamilton. The 16-year-old Whangarei Girls’ High School art, textiles and fashion technology student fancies seeing her name in lights when the credits roll for costume design for a future big movie or stage show. Her Fieldays success earlier this month is just the incentive she needs to encourage her to work hard for one of the halfdozen places open annually for the costume construction course she covets at the New Zealand Drama School, which she wants to attend in 2016. ‘‘It would be like a dream come true to work on films and stage,” Chloe said. The Classroom Couture category is about developing aspiring young artists and designers from secondary schools. Chloe’s category winner, called Felt Like Flowers, was a dress made by hand-felting wool blended from brown to white. Overlaying the dress was an overcoat made of alkathene pipes shaped into flowers. Flower/bailing twine shoes and a flower fascinator
completed the outfit. Chloe said she had created Felt Like Flowers working outside school under the guidance of Quarry Arts Centre tutor Hayley Clark. ‘‘Make sure you acknowledge Hayley helped me, she’s amazing,” Chloe said. Chloe’s parents, Vivian and Stephen King, and her sister Megan, 15, were at Mystery Creek to applaud her win.
‘‘I was so happy to have my entry accepted for the contest, it was a bit surprising to take first place. Winning was like icing on the cake,” Chloe said. Her Classroom Couture triumph earned Chloe $1000, which she said she would use to help buy herself a car, or maybe put a bit of the cash aside for another Fieldays Ag Art Wear entry next year.
BIG DREAMS: Chloe King dreams of moving from Fieldays to film costume success.
PHOTO/JOHN STONE
Study to enhance herd fertility A seven-year research study is under way to create dairy cows that are genetically more fertile. If successful, the study could increase national on-farm profit by $500 million a year. DairyNZ senior scientist and project leader Chris Burke says the study requires a purpose-built herd of 700 Holstein-Friesian heifer calves with low and high fertility attributes, created from more than 2800 contract matings. LIC and CRV Ambreed are helping set up the research herd, with LIC managing the contract mating programme. LIC started contacting more than 1000 farmers late last month. Fertility is fundamental to dairy farm productivity, and the goal to get as many cows as possible in-calf in the first six weeks. The research programme aims to lift the six-week in-calf rate from the average of 65 per cent to 78 per cent.
Achieving this would deliver an estimated annual increase in profit of $500 million, researchers say. “This is a challenging target that cannot be achieved using current knowledge and technologies alone,” Burke says. “A biological breakthrough is required. The research herd will help us to unravel the underlying biology that differentiates genetically fertile cows from infertile cows. The programme has assembled some of the best scientists in New Zealand and Australia to work together with this research herd. The fertility research programme also aims to increase the power to select for improved fertility genotypes through use of novel phenotypes (new ways to measure fertility for selection purposes), improved recording and enhanced statistical analysis models.
STAR TURN: Felt Like Flowers won the Classroom Couture category in the Ag Art Wear contest at the National Agricultural Fieldays. PHOTO/JEFF BRASS
BRIDGE BUILDING & PILING SPECIALISTS We offer Design & Build for Bridges including plans, permits, consents and construction. Or see us to strengthen and repair your existing bridge to ensure safe access on your property. Contact: GHK Phone: 09 435 4443 Address: 3 Pipiwai Road, Email: admin@ghk.co.nz Piling (2000 Ltd) Fax: 09 435 2469 Kamo,Whangarei Web: www.ghk.co.nz
SubScribe today
and receive an Antipodes Moisture Boost Set Subscribe before Sunday, July 6 and you will receive and Antipodes Moisture Boost set – valued at over $94. The moisture boost set is designed to help improve moisture in dry and parched skin. The Antipodes Moisture Set includes: • Divine Face Oil – 30 ml • Vanilla Pod Hydrating Day Cream – 60 ml To find out more about Antipodes products, visit antipodesnature.com
TO SUBSCRIBE CALL NOW: 09 470 2813 and quote “Antipodes”
SUBSCRIPTION OFFER
TO SUBSCRIBE: 09 470 2813
Offer ends July 6, 2014 and is only open to new 6 day subscribers. Price and discount is for a Monday – Saturday subscription.
Subscribe today for only $7.60 pw*
18
Northern Advocate
Thursday, June 26, 2014
North grower shines in BoP contest A Northlander who won the Bay of Plenty Young Fruit Grower competition hopes his success will inspire other young people in the North to make careers in horticulture. Thirty-year-old Patrick Malley — who beat four Bay of Plenty (BoP) rivals to win the June 18 contest at Mt Maunganui — is the contracting manager/director at the 24ha Onyx Capital kiwifruit and avocado orchard at Maungatapere. New Zealand Kiwifruit Growers Inc president Neil Trebilco said others from outside the BoP had contested the Young Fruit Grower competition in the past, but Mr Malley was the first from Northland. “He is to be congratulated,” Mr Trebilco said. “He made a lightning raid from the North, collected the spoils and has taken off. He was a very worthy winner.” The Onyx Capital orchard was bought by Mr Malley’s parents, Dermott and Linzi Malley, in 2011. Patrick, who is close to completing a bachelor of business studies degree course, and his veterinarian wife Rebecca joined them in 2012. Since their arrival the family has doubled kiwifruit production to more than 150,000 trays this season and they aim to triple the output to 225,000 trays next
WIN: Northlander Patrick Malley with the Bay of Plenty Young Fruit Grower trophy.
PHOTO/TRACY HARDY
BUSY: Patrick Malley back at work in the Onyx Capital orchard at Maungatapere after winning the BoP award.
season. The competition at Mt Maunganui involved a range of practical and theoretical challenges to test skills necessary in running a successful fruit growing business. “Questions ranged from key fertilisers to biosecurity issues. We had to give an impromptu speech about ourselves to 100 school kids,” Mr
Malley said. “The other competitors were good and there was a tiebreaker at the death. The five of us put everything we had into the contest. I wasn’t expecting to walk away with the top prize as it meant I had to beat four others who are at the top of their game and it was a really close competition.” He won a $1500 cash prize,
Northland Engineering Supplies
NORTHLAND’S LOGGING ONE STOP SHOP
Supplied by Northland Enginee Engineering Supplies 116 Broadway, Kai Kaikohe
05 2630 09 405
and as a Young Grower of the Year finalist, he also won a oneday media and presentation course in Auckland and an expenses-paid trip to Christchurch to compete as a BoP representative for the national 2014 Young Grower of the Year title in August. “If you’re a young Northland fruit grower, you should
Fencepost upgrade under way By Carmen Hall Job vacancies on Fonterra’s Fencepost website are already 7092 this year, compared with 18,064 for all of 2012 and 2013 and job-seekers have placed 4579 work-wanted ads from January 2014. Digital channel manager Carla McQueen says Fencepost has been a recruitment tool since 2001. “As the majority of our farmers use Fencepost to help manage their dairy business, the logical step was to include the jobs section on to the same Fencepost platform.” The work-wanted section has always been an important part of the website, she says. “It’s a great way for those looking for staff to read CVs to see if anyone would suit for any roles they have.” The website is linked to DairyNZ so
Achieve your focus with industry training. My focus is a better bottom line
definitely consider doing this competition next year. You get to meet some really supportive people who can help you with your career, and it’s a good way to push yourself in all respects as a young fruit grower.” Mr Malley will have a chance to size up the other Young Grower of the Year finalists at a meeting in Auckland next week. In the meantime he will be competing in another arena — rally driving. A former 2WD national rally champion, he is now driving a Peugeot 208 in the Rally Xtreme championship. He came second in the first round of the series on June 1, which is expected to be screened on television on Sunday, and will compete in round 2 in the Wairarapa on Saturday.
users can access its resources. “DairyNZ plays an important role across the industry and provides up-to-date resources as advice. Fencepost has a number of links to the DairyNZ website so that employers or employees can easily obtain their resources as examples of best practice.” An upgrade of the job site is under way and expected to be online by August. Federated Farmers chief executive officer Conor English says its website ruraljobs.co.nz started in 2009 to provide members with a free additional channel to promote job opportunities on farms. Feedback has been positive, he says. “It has been awesome. Finding great staff is critical for successful farming. Farmers find it easy to use and feel they have a better calibre of applicants, I guess because the people who come to the Federated Farmers website get what we do.”
Agriculture National Certificates
Level
General Skills
2
Stockmanship
2
Breeding
3
Animal Health and Husbandry
3
Feeding and Pastures
3
It’s all about achieving your goals. Our focus is to work alongside you to identify the skill needs of your team and develop a training pathway that’s tailored to your business.
Rural Staff Management
3
Dairy/Sheep/Beef Farming
4
Check out our wide range of on-the-job, NZQA registered training programmes, from entry level through to business management.
Production Management
5
Diploma in Agribusiness Management
5
Boost productivity and increase efficiency to improve the bottom line of your business through industry training and qualifications. Primary ITO industry training delivers a real return on investment. Upskill your staff and develop your own management expertise to build a better business.
Talk to your local adviser today.
www.primaryito.ac.nz 0800 20 80 20
We also offer short courses in milk quality and effluent management.
KINGST T54418_CHB_A
Thursday, June 26, 2014
Northern Advocate
19
SUBSCRIBE
TODAY AND RECEIVE THREE
FREE MAGAZINE SUBSCRIPTIONS Subscribe to The Northern Advocate before July 24, 2014 and you will receive FREE subscriptions to NZ Rugby, NZ Fishing World, and NZ Hunting World – valued at over $148.
NZ Rugby World is an award-winning magazine with unparalleled insight into the people who play the game and the issues that matter to the fans – 6 issues. NZ Fishing World magazine boasts an editorial blend of lifestyle, travel and instruction – 8 issues. NZ Hunting World is a new annual publication with advice from some NZ’s most experienced hunters including Swazi man Davey Hughes – 1 issue.
TO SUBSCRIBE CALL NOW:
09 470 2813 and quote “The land offer”.
SUBSCRIBE TODAY FOR ONLY
$7.60 PER WEEK
RRP OVER $148.00
Offer ends July 24, 2014 and is only available to new 6 day subscribers. *Price and discount is for a MondaySaturday subscription.
OPINION
FRAN O’SULLIVAN
Business writers Fran O’Sullivan and Alexander Speirs call the shots here every Thursday
Millions at stake in milk scare stoush French supplier Danone claims Fonterra misled it over the risks associated with botulism scandal It’s high-stakes for Fonterra and its more than 10,000 farmer shareholders as the dairy cooperative tries to halt Danone’s multimilliondollar action in the High Court at Auckland. The French food conglomerate wants compensation for alleged damages of the more than half a billion dollars it claims to have suffered as a result of last year’s botulism scare. The scare ultimately proved false, but Danone’s valuable China trade was severely affected as its New Zealand subsidiary Nutricea recalled several Karicare infant formula brands and other potentially affected products from Chinese supermarket shelves. Fonterra is arguing that the correct place to settle Danone’s claim is behind closed doors at arbitration in Singapore. The New Zealand company argues that because Danone’s supply agreement was with Fonterra Limited, its liability is capped at A$30 million ($32.3 million) with the final settlement to be determined through a binding arbitration. Problem is sources close to the arbitration believe it could stretch on for another year. And with Danone reckoning its damages totalled $544.5 million from the product recalls and associated brand damage alone, it’s easy to see why it has the Fonterra Cooperative Group — and a potentially much larger damages award in its sights. Fonterra’s reputation will inevitably be on trial if Justice Geoffrey Venning allows the Danone action to proceed in open court rather than wait for the outcome of arbitration. The dairy cooperative has already fronted up to its failings in the rigorous internal inquiry
headed by Fonterra director Sir Ralph Norris. It has quietly settled claims with eight other customers who were affected when Fonterra publicly fronted up to the possibility that a batch of whey protein concentrate, known as WPC80, was affected by the botulinum bacteria. But the Norris report was also “trimmed for trial”, with any contentious findings that could have exacerbated a damages claim redacted from the final report. Danone has brought four causes of action against Fonterra; two for breach of the Fair Trading Act and two for tortious conduct. Tortious conduct is a claim actioned when a civil wrong has occurred, resulting in damages against the plaintiff. The most common category is negligence, but the possibility of defamation could also fall under a tort claim. That contract however is between Danone and Fonterra Ltd, a subsidiary company under the Fonterra Cooperative Group umbrella that owns the Hautapu plant where the suspect batch originated. Danone’s action lists Fonterra Group as the defendant, skipping the web of subsidiaries and commercial agreements to seek reimbursement from the source. Danone’s attorneys however maintain that although their present claims arise from the botulism incident, they differ from what is covered under the supply agreement and they should be free to pursue their case before the High Court. This week’s skirmishes at the High Court tell the story. Danone’s counsel has alleged Fonterra Cooperative Group employees provided it with “incorrect and misleading information” in April last year. This included the
THE DAIRY COOPERATIVE HAS ALREADY FRONTED UP TO ITS FAILINGS
fact that the WPC80 whey protein concentrate was clear of certain bacteria when testing was yet to be completed. Danone had been “lulled into a false sense of security” in April and continued to manufacture and distribute product. The crucial point is that Danone alleges that Fonterra knew there were uncertainties about the whey protein product. It also has concerns that it had to issue a multi-country recall when it later turned out to be based on a false alarm. This month Fonterra was fined $150,000 by the NZX Markets Disciplinary Tribunal for breaching continuous disclosure requirements to the stock exchange during the botulism scare. That followed a $300,000 fine from the Ministry of Primary Industries after Fonterra admitted four charges. Danone’s action will be far more worrying to Fonterra and its farmers than the relative slaps on wrist they’ve endured thus far — that’s why the stakes are so high.
Fran O’Sullivan is a business columnist for the NZ Herald and Alexander Speirs is a business journalist for Herald Business Reports.
• Milking Machinery • Cowshed Pipework • Lathe & Milling Machining • Milking Machinery testing & quality control (same day repairs) • Aluminium & Stainless welding • Installers of Read Milking systems – Proudly NZ made • Agents for ADF milking systems- control your Mastitis sy way ay the easy
What we haven’t got, we can get!
Ph 09 439 8248 | Beach Road, Dargaville
20
Northern Advocate
Thursday, June 26, 2014
Supported by grabone.co.nz/theland
$500
$15
$1000 Voucher towards a Wood Fired Central Heating Rangecooker
$144.95
16’’ Oregon Bar 42cc Qualcut Chainsaw
$399
PW2000 Powerpro Waterblaster
$195
Native Plant Pack (50 Native Plants) 15 Packs to Choose From
$299
Petrol Water Pump Semi-Trash 6.5HP 3” 80MM
$15 for a Two-Pack of CAT Boot Socks Available in Black, Forest or Charcoal
$25
60 Capsules of New Zealand Deer Velvet
$15
Lawn Raider Cut’n’Paste Weed Killer Gel
$699
Rotary Hoe Cultivator Tiller 6.5HP
$85
Five Litres of Citrus-Based Cleaner Concentrate with Free Spray Bottle
$1699
Toolmaster Log Splitter 20T Full Beam 200kg
$149.95
Powerful Brushcutter 3300ST
$119
Pair of Long Classic UGGS Available in Four Colours
$1927
Solar Water Heating System incl. 10-Year Factory Warranty
Thursday, June 26, 2014
Northern Advocate
COMMENT
21
by CHRIS LEWIS
What’s not said on carbon tax The Greens’ proposed carbon tax policy could have dire consequences for New Zealand’s dairy industry, endangering the competitiveness of our production and pricing ourselves out of the market, writes Chris Lewis to far less carbon efficient countries. These costs cannot be passed on to global consumers before they are a global greenhouse gas cost — rather they will hurt the competitiveness of our production. As I said, we are environmentalists too. Farmers are taking measures in reducing their carbon footprint through feedstock, manure control, stocking intensities, and riparian planting, but unfortunately there is little farmers can do to cut methane emissions from cows. It’d be great if the people behind this policy could identify and use these measures and work with the Ministry for Primary Industries and the farmers it will ultimately cost. As Peter Drucker said: “The most important thing in communication is hearing what isn’t said.” Ultimately, ill-thoughtout and anti-competitive policies like this are going to close our borders to the primary industries, so I hope they have a back up plan. New Zealand dairy is an efficient producer and is focused on becoming even more so, investing in Pastoral Greenhouse Gas Research Consortium, the world’s most comprehensive research programme for livestock emissions mitigation, since 2003. We have an achievable target from this and other research that will give farm systems a 30 per cent lower carbon footprint, while not shooting ourselves in the foot. We need to be aware of not just ourselves but the wider implications of policies such as these. We don’t live in a bubble, so although the idea of returning New Zealand to its pre-industrial state sounds nice, we still survive off feeding people beyond our borders. I am not saying we have it nailed but we are doing well in the agricultural emissions space, globally better than most, so why not build off what is working?
■ Chris Lewis is Federated Farmers Waikato provincial president
ON RIGHT TRACK: There is little farmers can do to cut methane emissions from cows.
WE SEE A GENERAL FARM HAND ON $39K IN JUST 12 MONTHS’ TIME
With one year’s practical, hands-on training Taratahi graduates take their places on sheep and beef farms around the country with a NZQA approved qualification under their belts, a great starting package in the bag and a dream lifestyle in their sights. Can you see it too?
ENROL NOW FOR OUR JULY INTAKE.
www.taratahi.ac.nz | 0800 827 2824
TRACTA52276_NA
The recent announcement of the Green’s carbon tax policy was not so much a shock but a wake-up call to the reality of how vulnerable we are to the values and the whim of our Government. A carbon tax for New Zealand would mean we would no longer be a competitor in global dairy trade, which means less in subsidies, fewer jobs, and more than likely a government back in deficit. Farmers are environmentalists too and have more in common with the Greens than one might think. For one their policy on stopping the urban sprawl is a policy we, at the Federation, share. I think some of the Green’s policies are quite good, such as the lowest corporate tax rate, managing our productive land in a ecological and sustainable way, and ensuring our rural communities are sustainable by developing essential infrastructure and making sure we have access to fundamental services. But the devil is in the details, and what we might agree on in the broadest of theories can see us very much divided on the definitions. New Zealand is already a very low emissions exporter of dairy products and is investing in research constantly to further reduce its impact. A recent Food and Agriculture Organisation (FAO) study in 2010 estimated that globally emissions averaged 2.4kg of C02 equivalent (CO2e) a kilogram of milk, when New Zealand’s emissions are estimated at around 1kg of C0 2e per kilogram of milk, according to DairyNZ, and Fonterra’s carbon footprint results were 940g per litre of milk. So it seems detrimental to me, when things are in a positive downward trend of approximately 1.14 per cent reduction in C02 a year, to take away the carrot and introduce the stick. Not only is it counterproductive to the investment in research but it is counterproductive to our production, therefore our trade and economy. The effects of placing a tax on dairy farmer’s emissions, at $12.5 a tonne, would look like around a $17,000 dent in costs for the average farm. What they don’t address is the potential to price ourselves out of the market and shift production
22
Northern Advocate
Thursday, June 26, 2014
PROPERTY
by TONY VERDON
Farm prices remain firm as economy continues to grow Even with international dairy commodity prices falling from historical highs, regional rural real estate markets remain stable. It may sound odd at first, but farmers, rural economists and valuers are welcoming an easing of dairy farm price increases across much of the country. They say a continuation of the soaring international milk prices could have ultimately led to overinvestment in rural property and farm prices inevitably reaching unsustainable levels. Most rural land prices remain firm, and with the local and international economy continuing to grow, prospects look encouraging. ANZ rural economists say from a long term perspective a fall in milk prices is likely to be a good thing. Back-to-back record high payouts could have fostered overinvestment, unsustainable land prices, and too large a supply of milk around the globe. This would ultimately have led to prices undershooting a season or so down the track, causing unnecessary investment volatility. So the easing of milk prices from historically high levels has been accepted with few complaints. Quotable Value’s registered valuers point to Northland as an example of a much improved rural property market. QV’s Rural Value head valuer, David Paterson, says following several years of difficult rural property market conditions, Northland was experiencing a moderate increase in prospective purchasers, which in turn was lifting sales volume. “With parties competing for properties, this has brought an increase in values for the first time since 2008,” he says. Mr Paterson says real estate agents in Northland were having difficulty finding enough farms to sell to willing buyers. Some well-located areas had seen increases of more than 10 per cent for smaller farms that attracted a larger pool of prospec-
tive purchasers. Values for dry stock pastoral farms in Northland were typically between $500 and $850 per stock unit. Mr Paterson said the dairy market in the Waikato and Bay of Plenty Regions was positive and showing signs of a good recovery in value levels in some areas. There has been a slight increase in values generally. “Those areas that saw large declines post 2008 and have struggled since with high numbers of mortgagee or forced sales are now also experiencing good interest in properties on the market, and a corresponding increase in sales volume and values,” he says. There had been a strong recovery in values in the Bay of Plenty and the Hauraki District in particular. The market for sheep and beef properties around Rotorua was limited because most farms in the region had already been converted to dairying. Mr Paterson said many of the smaller properties were being bought as dairy support. The largest breeding sheep and beef farm sold over the past 12 months in the Central North Island was Mangaohane Station, near Taihape, which sold at $553 per stock unit for 4840ha. The property also included an area of commercial forest. Other smaller properties in the Rotorua area were selling for between $625 and $1001 per stock unit with the higher value being influenced by dairy farm or dairy support potential. The Hawke’s Bay-Gisborne region had been recovering relatively well following drought conditions. After a relatively subdued few years, current sale levels were generally strong and showing a slight increase on recent years.
“There have been 22 confirmed sales of properties over 300ha in size since June 2013, plus a number of others which are yet to settle. Value levels are generally in the $500 to $800 per stock unit range, with good levels of interest shown in most properties,” he says. Values probably remained slightly behind those seen during the 2007-08 period. The Manawatu/Wairarapa region had seen renewed interest in dry stock pastoral properties on the market. “There have been slight value increases for this region of between 2 to 4 per cent which reflected the
more positive sentiment in the rural economy and property market.” Mr Paterson says smaller blocks oftenhave good interest from neighbouring owners prepared to pay good money for land adjoining their own farms.
REAL ESTATE AGENTS IN NORTHLAND ARE HAVING DIFFICULTY FINDING ENOUGH FARMS TO SELL TO WILLING BUYERS
Plan now for a successful spring sale Are you thinking of selling your property this spring? Then now is the time to talk to your local PGG Wrightson Real Estate specialist to book your space in the Spring Property Express, set to be a higher quality magazine than ever before. The Property Express is distributed to over 85,000 rural deliveries throughout the country as well as our national and international databases and Air New Zealand Koru Lounges. Don’t miss out – contact us today. Whangarei 09 470 2522
www.pggwre.co.nz
Dargaville 09 439 3342
Kerikeri 09 407 4832
Pukekohe 09 237 2014
Limited spaces Be in quick! Helping grow the country PGG Wrightson Real Estate Ltd, Real Estate Agent, REAA 2008
Thursday, June 26, 2014
Northern Advocate
23
PROFILE
Award-winner eyes farm ownership Hard work and intensive study are taking an ambitious young man to the goal he’s long had in his sights. Dairy farming’s something he grew up with and it is a lifestyle he loves Sharemilker Wiremu Reid has his heart set on owning a farm by age 30 and he’s making all the right moves to get there. The fourth-generation dairy farmer grew up in Whangarei and moved south with his partner Bettina in 2009. Since then the young couple have been building up their equity, making many sacrifices along the way, hoping to reach farm ownership by 2020. “I’m confident we’ll get there,” says the 24-year-old. “Ultimately, we want a run-off, or a lease block, with conversion possibilities. But, for the short term, we would like somewhere to graze our own stock.” The couple are in their first season 50/50 sharemilking 1150 cows in Ranfurly with the support of Wiremu’s parents. “We’re all doing a big marae-style partnership,” says Wiremu. “My parents are helping out with the wintering and mating. Having them involved means there’s more time to do extra jobs that will help us get to where we want to be faster.” On June 13, Wiremu was announced winner of the 2014 Ahuwhenua Young Maori Farmer of the Year competition. Sponsored by Primary ITO, Te Tumu Paeroa, Te Puni Kokiri and Allflex, the competition established in 2012 has become an exciting addition to the Ahuwhenua Trophy BNZ Maori Excellence in Farming Award. He says he was impressed with the high calibre of the other entrants and believes Maori are well suited to farming. “As Maori, we naturally have many key attributes that make us successful farmers. We have a good sense of humour; make light of any situation, no matter how stressful; we have an easygoing attitude, where we give anything a go; and also hardness to stick it out and get the job done.” As an applicant, Wiremu was assessed on a range of skills and qualities, including his commitment to farming, training and education, expertise relative to his position, community involvement, plans
for the future and personal attributes. The runners-up for the award were 50/50 sharemilker Joshua MacDonald, from Waikato, and herd manager James Matheson, from Gore.
KingSt12576/NA/AR
3
MONTHS
DEFERRED
AMBITIOUS: Wiremu Reid at the awards evening in Tauranga with his partner Bettina.
PHOTO/JOHN COWPLAND
To improve his business management skills, Wiremu is studying for a Diploma in Agribusiness Management through Primary ITO. The diploma is a qualification for
PAYMENT*
ON FIRST LOAD
At NRM we know farming’s all about doing things the easier, smarter way. So we’re making your life easier with up to 3 months deferred payment* on your first load of ProForm pellets delivered by 29 August.
0800 800 380 | www.nrm.co.nz *Terms and conditions apply. Visit nrm.co.nz for further details.
agribusiness decision-makers who want to upskill and acquire the tools to give them better business knowledge. Though dedicated to achieving his goal, Wiremu still recognises the importance of family and makes every effort to take time out to spend with his young sons, William and Manu. “My parents always made time for us so Bettina and I do the same,” he says.
24
Northern Advocate
Thursday, June 26, 2014
THE INNOVATORS
with DEAN TAYLOR
Doghouse can be a cosy place First-time inventor Rose Todhunter (pictured) went to National Fieldays with a concept for a new type of dog kennel inspired by her late grandfather, Tony Prentice. The Thermo Kennel is designed to keep dogs warm in winter and cool in summer. It earned a merit award. Her invention is based on a design
Rosie’s grandfather made 20 years ago — a double-skinned, insulated dog kennel. Rosie says it is basically a chilly bin — two skins insulated with 30mm of polystyrene and a polyvinyl chloride door (that’s the flash name for PVC strips used on walk-in freezers and coolstores). Rosie lives on High Peak Station in Canterbury’s Rakaia Gorge and works for
New Zealand Young Farmers as project leader for the Get Ahead Programme. She says people assume she made it for her dogs because she lives in a cold climate, but she has only a pet dog — although her fiance has a team of working dogs. And, she adds, an important aspect is also keeping dogs cool in summer.
WE SEE A DAIRY FARM ASSISTANT ON $41K IN JUST 12MONTHS’TIME
She says the obvious benefit is better rested dogs, but there is a cost benefit as well. “In winter, dogs aren’t using a lot of energy trying to stay warm, therefore they need less food,” says Rosie. The same applies to a lesser extent to dogs trying to get cool in summer. The kennel isn’t on the market yet, but Rosie reckons she could have sold plenty as she had nothing but positive feedback about the invention. She has 65 people ready to buy when the product comes on the market. Rosie says the benefits of being at Fieldays included meeting people with knowledge about production and distribution. She has a couple of leads to follow and hopes to have the kennels out there this year. She is aiming for a $500 price tag, putting her product right in the middle of the existing market. Rosie also got advice from farmers, and the production model will be bigger than the prototype and able to be used with a run.
DOGGONE IT: Rose Todhunter.
No.8 WIRE with DOUG LAING
WORM FARMING
With one year’s practical, hands-on training Taratahi graduates take their places on dairy farms around the country with a NZQA approved qualification under their belts, a great starting package in the bag and a successful future in their sights. Can you see it too?
ENROL NOW FOR OUR JULY INTAKE.
TRACTA52276_TLNA
www.taratahi.ac.nz | 0800 827 2824
A seminar with cattle farmer and biological fertiliser expert Bruce Davidson will be held in Otane, Hawke’s Bay, on July 1 when Davidson will explain ways to reduce farm costs by creating free fertiliser to stimulate soil function and lift pasture performance by constructing a worm farm. The 8.45am to 4.30pm session costs $250. Register at succession.co.nz.
AGRI INNOVATION The University of Waikato has launched new agri-tech innovation initiatives and will appoint a manager to improve engagement with the agri sector. An agri-tech seed fund and entrepreneurial fellowship will also be launched. Professor Alister Jones, Waikato University’s deputy vice-chancellor said: “Investing in these new agri-tech initiatives supports our strategy for a connected university focused on adding value to key sectors, such as agriculture.’’
Thursday, June 26, 2014
Northern Advocate
25
LOCAL DIRECTORY • PRECISION MACHINING • GENERAL ENGINEERING • CERTIFIED WELDING • CAR MODIFICATIONS
877 Pipiwai Road RD6, Whangarei Ph: 09 433 7105 – 027 432 6429 e: earle.tito.eng@gmail.com www.earletitoengineering.co.nz
Northland Cow Cafes & Beef Barns
One name covers it all
• Feed Pads for Dairy & Beef • Covered & Uncovered • Dry Scrape Option • Clear Plastic Roof • Covered Effluent Storage • Silage Bunkers • Fertiliser Bin • Customised Design from Experienced Feed Pad Builders
Whangarei 09 438 9163
8/10 REWA REWA ROAD, WHANGAREI 09 470 0650
glenntaylor@guyco.co.nz
www.guycoagricultural.co.nz
TRACTA TRANZ LTD
Formerly Northland Machinery, now Powerfarming Northland
Wellsford 09 423 7736
Dargaville 09 439 3333
Hassle Free & Friendly Service HERD HEALTH & PRODUCTION SOLUTIONS
WHANGAREI
Whangarei based locally owned and operated Servicing from the far north to the Waikato region
“SPECIALISTS IN CARTING ALL FORMS OF
MACHINERY AND EQUIPMENT” Anything from 1/2 tonne to 25 tonnes
EMAIL: dispatch@tractatranz.co.nz • www.tractatranz.co.nz PHONE (09) 437 1003 OR 021 443 951 • FAX (09) 459 1276
Experienced Farm & Pet Vets
Cnr Kamo Road & Carlton Cres, Kamo
Phone 435-1924 HAINES HOUSE HAULAGE NORTHLAND LTD
Ph: 09 435 7285 | 0274 967872 Fax: 09 435 7287 Email: ben@removalhomes.co.nz www.removalhomes.co.nz
RIGHT TYRE – RIGHT PRICE
Personal Service Specialist
FREE Pressure & Safety Checks
TyreMaster owner-operated tyre boutique
21 PORT ROAD, WHANGAREI • PH 09 438 8883
www.tyremasterwhangarei.co.nz
ALLLL C CA
DES Pricing or For Spot tr . Con acts
$
63,000+GST
43,000+GST
$
With over 40 years experience Simply the best • Canola Meal • Minerals • Dairy Pellets • Calf Feeds • PKE • PK Blends • Dried Distillers Grain • Dried Distillers Blends
&
DES SMEATH Mobile: 0274 498 273 | Office: 09 435 0022 | DDI: 09 437 7437 | Email: des@desherfarm.co.nz
OUT EVERY THURSDAY IN
DELIVERED FREE TO AN EXTRA 5,000 RURAL ADDRESSES EACH WEEK!
The Land
6000 4000 2000
Jun
2012/13
Sep
Dec 2013/14
The GDT auction last week recorded its first overall gain since February, giving the market a much needed confidence boost. Volumes offered are at seasonally low levels however, and are forecast to increase at the coming auctions.
Mar 2014/15
" OVERSEAS PRICES
BEEF
North Is. Schedule This $/kg CW net Week P2 Steer # 4.41 M2 Bull # 4.19 M Cow # 3.10
North Island Steer Schedule
450 NZc/kg (net)
400 350 300
Oct
5Yyr avg
Jan
Apr 2012/13
Jul 2013/14
# OVERSEAS PRICES
NZ$/hd (net)
North Is. Schedule $/head net Lamb 17.5kg # Lamb 19kg # Mutton 21kg #
North Island Lamb Schedule
100 75 50
Oct
5Yyr avg
Jan
Apr 2012/13
This Week 102.82 111.68 123.49
Jul 2013/14
IVAN LUKETINA – Agrifax Market Analyst
China’s slowing real estate sales have weighed on market sentiment and tightened credit availability for developers and log buyers. The resulting slowdown in log consumption has combined with a 21% year-on-year increase in China’s first quarter log imports to tip the market into oversupply, approximately doubling log inventory levels
FARMGATE PRICES Last Week 102.82 111.68 123.49
#
at Chinese ports. Prices were forced into a downward correction to balance supply and demand, but with such large volumes already in the system, supply has taken longer than expected to correct. China’s log prices cannot consolidate until imports slow and provide more certainty that the lower price will bring about shrinking inventories. This is expected to occur in June and July, when supply from the more price-sensitive sources such as Australia, Ukraine and southern regions of the US is reduced. New Zealand exports will also ease as winter conditions hamper harvesting and production from marginal stands stops.
China Housing Sales vs Softwood Imports
2012 Softwood (RWE) imports im rt Source: Agrifax, GTIS, China NBS
exports million m³
2006 2009 Co Commercial rcial housing sales
100 1.0
0.0
50
2009
2010
2011 Exports
2012 2013 2014 AYgrade price
0
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
93,900
+GSTT
PLUS
$
2.5%
FINANCE
Purchase now and pay 40% deposit, and the balance monthly over 24 months*
NORTHLAND 9 Kioreroa Road, Whangarei Contact: Shane Powley 021 460 803 Skip Edwards 021 460 802
100 80 60 40 JunY12
DecY12
JunY13
DecY13
JunY14
GRAIN & FEED 500
NZ Feed Grain Indicator
400 300
JunY13 Jun 13 Feed wheat
DecY13 JunY14 Dec 13 Jun 14 Feed barley
WOOL 1200
Wool Prices
700
200 JunY12
DecY12 29 Micron
JunY13 39 Micron
DecY13
Lamb
JunY14
NZX DAIRY PGI Last 15 Days As at June 22, 2014
Pasture Growth Index Above normal Near normal Below normal The NZX Pasture Growth Index (PGI) is an indicator of potential pasture growth based on three key climatic variables – temperature, moisture and light.
NZ log exports vs A-grade log price 2.0
0%
Agrifax Log Price Indicator
200 JunY12 DecY12 Jun 12 Dec 12 Milling wheat
Year Versus Ago 5-yr Avg 88.27 +1% 95.88 +1% 106.03 +1%
100%
Y100%
#
Year Versus Ago 5-yr Avg 4.03 +14% 3.95 +9% 3.05 +9%
ivan.luketina@nzx.com
A real estate slowdown in China has caused a huge correction to its imported log and lumber markets. New Zealand exports over half its log production to China so this has resulted in a big fall in returns to New Zealand foresters and exporters. A-grade log export prices have fallen by 30% since March, to $87/t at the wharf gate, and are yet to find the bottom.
year on year growth
Last Week 4.41 4.19 3.10
Lamb schedules have remained steady during the past three weeks. It seems companies are satisfied with processing numbers, operating reduced shifts for now. Their main focus is on completing chilled programmes for UK customers.
EXPORT LOG PRICES SINK
200%
FARMGATE PRICES
120
Beef schedules in the North Island are holding at very high levels. Prices jumped up earlier than normal this season, due largely to increased procurement pressure and record-high prices for NZ beef in the US.
SHEEP 125
Year Versus Ago 5-yr Avg 4668 –5% 4589 –13% 4598 –5%
FORESTRY
NZc/kg
US$/t
GlobalDairyTrade Previous US$/t 17/6/14 Auction WMP 3594 " 3658 AMF 4058 ! 3898 Average 3807 3756 "
Agrifax WMP Price
8000
!
FAT PRODUCTS
NZ$/t
# POWDER PRODUCTS
DAIRY
Thursday, June 26, 2014
NZ$/t
Northern Advocate
export log price ($/t AWG)
26
*Normal lending criteria applies. 40% deposit required. 24 month term. Tailored finance programs available. Offer ends 30/06/14.
26Jun2014 metservice.com | graphic compiled by
ARION 420 • 110hp - 4 Cylinder, common rail diesel engine • STOLL FS10 Front Loader • QUADRASHIFT Powershift Transmisssion • REVERSHIFT clutchless powershuttle
Thursday, June 26, 2014
Northern Advocate
27
A CUT ABOVE THE REST! FARMALL U PRO • Offered as CAB version • 3 models from 99 to 114hp • 3,4 litre, 4 cyl, FSC FPT engine with Common Rail Injection • All EU Stage 3b compliant, thanks to CEGR system with DPF/DOC • 150 litre fuel tank • 32x32 transmission (40 kph) with 4 step power shift – ZF produced • Separate oil reservoir for transmission oil • Electro-hydraulic power shuttle standard • 4150kg minimum weight Benefit: Efficient Power FROM technology combined with top of the line transmission for highest comfort and efficiency of +GST operations
$97,790
FROM
$137,990
+GST
MAXXUM CVT
THE POWER OF
PUMA 130CVT
TECHNOLOGY
FOR THOSE WHO DEMAND MORE
Objectives change, needs change, markets change - but the number of hours in a day never does. And this is why we’ve unleased the Puma CVT. A highly productive, versatile tractor that is easy to use and delivers everything you need to handle your daily tasks. Simplicity. Productivity. Economy. Comfort. Quality. The Puma CVT gives you more.
When you work with the Maxxum CVT every day you discover the power of technology at its best. Every Case IH Maxxum CVT tractor sends a strong message to the world; the powerful design of a king of the fields, the modern styling with its rounded shapes combining style and power, every detail engineered to perform for you. Every time you climb into the cab and drive, you experience the power of technology at its best.
FROM
$161,071
+GST
MAGNUM SERIES
POWER TO CHANGE THE INDUSTRY LANDSCAPE ...
FROM
$227,870
+GST
More food ... more grain ... more efficiency... Case IH works with you to meet these demands, because at the ground level of the industry work needs to get done. The new style Magnum range is built to meet the power, durability, comfort and productivity needs of large-scale farmers, bringing reliable technology and value to their business. FROM
FARMALL JX
FARMALL B
+GST
PROUD TO DRIVE A FARMALL JX
INCREDIBLE POWER IN AN INCREDIBLY WELL DESIGNED PACKAGE: INTRODUCING THE NEW FARMALL B SERIES TRACTORS Thanks to smart design, rugged construction and reliable horsepower, Farmall B Series tractors deliver tons of performance in a compact size. Their 3 and 4 cylinder diesel engines provide horsepower ranging from 23 to 57, so you’re sure to find amodel that fits the needs of your operation. These tractors feature gear or hydrostatic transmissions, a comfortable operator seat with ergonomic controls and a range of front end loader options. So whether you put one of these tractors to work on a dairy farm, livestock operation, small farm, or need it for groundskeeping and landscaping, you can be sure you’ll hve a machine that works as hard as you do.
$51,270
THE NEXT GENERATION: VERSATILE, AGILE, POWERFUL
FROM
$16,566
+GST
More than 160 years of experience in agriculture has given Case IH a clear insight into farmers’ needs. We understand what it takes to help you produce food, fuel, energy and we do our utmost to bring you the technology to make that happen. That’s why we’ve worked with our customers to create a new range of smaller tractors, putting characteristics like manoeuvrability, visibility and handling at the top of the features list. The result is the new Farmall JX. Disclaimer: prices subject to change without notice
675888AA
23 NORMANBY STREET, DARGAVILLE PHONE: (09) 439 3266 SALES: (0274) 820 146 AFTER SALES: (0274) 720 747 FAX: (09) 439 3267