Canterbury Farming, June 2011

Page 1

28,500 copies distributed monthly – to every rural mailbox in Canterbury and the West Coast.

June 2011

INSIDE Government in quandary over Page 4

North Canterbury Deer Industry Focus Farm Selected Page 15

Learning Attitude Helps Suited Win Sharemilker/ Equity Farmer of the Year Award Page 19

Independent Canterbury trials confirm LessN’s benefit to dairy industry

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how Fonterra sets milk price

By Hugh de Lacy All the inquiries in the world won’t unravel the way Fonterra sets its milk price — short of the giant dairy cooperative opening its books to competitors and consumers, or letting them in on its pricesetting methodology. And given the fierce possessiveness with which Fonterra’s owner-suppliers regard their booming verticallyintegrated business, neither of those is about to happen any time soon. Which leaves the Nationalled coalition Government caught in the cross-fire between Fonterra and consumers outraged at the price they’re having to pay for milk in the supermarket, and rival limitedliability dairy companies bitching about the same price, albeit for different reasons. For consumers who grew up in a country where milk was so cheap they used to give it away in schools, the $2.50 or so a litre that the supermarkets are currently charging — which includes the supermarket’s margin and GST — is a nasty shock. For independent dairy companies like Synlait and Open Country, the price they’re paying for the 600 million litres of milk Fonterra is obliged each year to make available to them under the Dairy Industry Restructuring Act (DIRA) — and for the equivalent price they have to pay their own suppliers

to prevent them supplying Fonterra — is patently exorbitant. So consumers and competitors alike have leapt to the conclusion that Fonterra is ripping them all off. Groundless or otherwise, their suspicions have so far led to both the Ministry of Agriculture and Forestry (MAF) and the Commerce Commission conducting enquiries into the way Fonterra sets its milk price, and Parliament’s Commerce Select Committee — chaired by East Christchurch Labour MP Lianne Dalziel — threatening a third. The Commerce Commission findings had yet to be released at the time of writing, but the MAF inquiry, which Dalziel’s committee had called for this month, found no evidence of anti-competitive behaviour by Fonterra in setting its milk price. However Dalziel claimed MAF’s report left her none the wiser on how the price is actually set, and she reportedly added that she was “certainly leaning towards some further inquiry.” Whether that would yield any greater understanding of the process is problematic because Fonterra is “both a player and the umpire in the milk supply game,” Lincoln University Agribusiness Professor, Keith Woodford, told Canterbury Farming.

Fonterra’s role of industry price-setter was imposed on it in part by its own dominance of the nation’s milk production, and in part by the DIRA forcing it to make milk available to its competitors with the specific aim of reducing its industry dominance, now at 90% compared to 98% a decade ago. “Central to the formula by which Fonterra calculates its milk price are its capital and depreciation costs — highly commercially sensitive information which the company is understandably loathe to reveal to its competitors,” Woodford said. One company that would, for example, be delighted to get its hands on such information is Singapore-based agricultural investment multi-national Olam, which already owns about 25% of Open Country and is gunning for the struggling listed dairy farmer Farming Systems Uruguay. Short of getting a seat at the Fonterra board-table, Dalziel, the consumers and the competitors may have to settle for MAF’s and Fonterra’s word that their milk price is a genuine reflection of international prices minus its own costs of production, and is not inflated either by funds shifted over from the company’s operations dividend (previously called added-value), or by the way capital and depreciation costs are charged.

Woodford said there is, however, another element in the game, and that is Fonterra’s plan to change its shareholding basis — from one rigidly related to the amount of milk supplied, to one where farmer-suppliers may exchange among themselves ‘dry’ shares unconnected to milk supply. This change would require Parliament to amend the DIRA, which would offer Fonterra’s consumers and competitors alike the chance to get MPs tampering with Fonterra’s founding legislation. To sidestep the lobbyists in election year, the Government has, for the time being, consigned the question of DIRA amendment to the too-hard basket. “However, whenever the Government faces the issue of whether it will allow Fonterra’s farmers to trade Fonterra shares amongst each other, there will be two elements of opposition to it,” Woodford said. The first is “MAF objecting to the current proposals because

it isn’t satisfied that they are consistent with the DIRA’s intentions that farmers must always have easy entry and exit from Fonterra. “Secondly, the financial markets are wary of becoming involved in the share-trading scheme because of the absence of transparency in the way Fonterra sets its milk price. “The nub of the argument from competitors and consumer groups is that Fonterra allocates theoretical costs to its processing cost, rather than actual costs, and thereby raises the milk price for everyone. “A lack of transparency then fans the pre-existing suspicions,” Woodford said. How those suspicions are allayed while protecting the commercial sensitivities of Fonterra’s global operations, as well as creating the legislative framework for the farmer share trading operations that Fonterra wants, is going to be a challenge for whatever Government emerges from the November 26 elections.


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June 2011

Rio bound During the last decade, many of the larger South American economies have been growing strongly. Banana Republics and Dictatorships have been transformed into progressive democracies and their people were rewarded with a rise in their standard of living. Fonterra has been cashing in on this change of fortune by investing in dairy processing enterprises there as well as supplying them with milk products from New Zealand. Their latest venture is in buying 850 hectares of farmland in the Brazilian province of Goias and setting up a New Zealand-designed dairy farm. It will supply a local processing company, and milk around 3,300 cows in two milking sheds. Fonterra obviously thinks that it is better to join in with the opposition rather than competing with them head to head. It is very likely that some kiwi dairy farmers will be concerned about this — especially in light of the PGG Wrightson’s problems after investing in Uraguay farms. This sort of investment is, of, course not

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new to Fonterra — which these days provides 30–40% of the international tradeable milk supply with dairy products from New Zealand and other countries. Its options in New Zealand for expansion have been limited by Government regulations and the decreasing amount of suitable land for new dairy farms. Therefore overseas investment has been seen to be a logical way to grow the company. In the reported words of their CEO, Andrew Ferrier, “This pilot project will allow us to develop and test the right model for our own dairy farming operation. This demand will not be met by milk produced locally.” Those words will provide little comfort for farmers who see Fonterra as a New Zealandowned farmers co-operative and not an international dairy corporation like Nestlé. Strangely enough, Fonterra finds it acceptable to buy farms in Brazil and yet wishes to keep New Zealand farms locally owned. As Fonterra chairman, Sir Henry Van Der Heyden has been reported to say, “I want to see as many farms as possible stay in local hands (in NZ).” If this is so, then setting up dairy farms in Brazil and sharing New Zealand’s technology and capital seems to be a strange way to go about it. New Zealand ownership of farms at home is hard to argue for, if you are buying up farms in other countries. Consequently, our Government has allowed an increasing number of New Zealand farms to fall into foreign hands and these have the potential to buy up Fonterra from the inside. In New Zealand, dairy farmers are also having to change their currently ‘dirty dairying’ behaviour and adopt a ‘clean streams’ approach to give some credibility to our very good environmental reputation. It requires a considerable amount of investment and it could be argued that this should be given a greater priority than expansion overseas. In Brazil, the Goias district apparently faces similar environmental problems to New Zealand. It will be interesting to see if Fonterra’s trial farms are environmentally friendly, or merely shifting ‘dirty dairying’ offshore.

Canterbury Farming prints material contributed by freelance journalists, contributing columnists and letters from readers. The information and opinions published are not necessarily those of Canterbury Farming or its staff. Canterbury Farming takes no responsibility for claims made by advertisers. Canterbury Farming is published by NorthSouth Multi Media Ltd

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June 2011

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From the Minister David Carter, Minister of Agriculture Breaking barriers to productivity When I officially announced last year the theme of the 2011 Fieldays, I knew the biggest event on our farming calendar was on to a winner. ‘Breaking Barriers to Productivity’ captures exactly what New Zealand primary producers are good at — turning challenges into opportunities. Our farmers and growers are among the world’s most innovative and efficient. They are continually striving to find ways to work smarter, in order to deliver greater prosperity and opportunity to all New Zealanders. They know that adopting new knowledge and technologies is a key to driving productivity growth. The 2011 Fieldays — the largest agricultural showcase in the Southern Hemisphere, is a great opportunity to show how good our primary producers and manufacturers really are. This National-led Government is committed to lifting long-term growth in our rural economy. As the 2011 Budget showed, we are firmly focussed on getting the economy back on track and unlocking enormous potential for this country. Certainly, there are hurdles to overcome, as competition from other countries steps up and challenges facing the sectors become more complex, but increased productivity is key to our economic prosperity. This is one reason why the Government has embarked on an ambitious economic agenda based on a six-point plan to lift growth and create high value jobs. It is why we are supporting science, innovation and trade; removing red tape and unnecessary regulation; delivering smarter public services; investing in infrastructure; lifting education and skills; and creating a better tax system. It is why we are breaking down barriers to productivity. I congratulate Fieldays on its smart thinking with this year’s theme. The Government recognises, particularly, that innovation in the primary and food industries is essential for the country’s long-term growth and improved environmental performance.

India and China I understand that India and China have managed to bring 300 million people off the poverty line and into a middle class society. My first thought was — how did they achieve that, and wouldn’t it be great if New Zealand could move those who are needing hand-outs to live, to the point they were able to pay taxes? But then I thought, what a great chance for the rest of the world to do really well. With money to spend on food, they will no doubt want to leave basic survival-food behind and move into the wonderful world of niche. Yes, I know I am always on about niche marketing, but as you know in your heart, that’s where the margins are. Apart from buying all the shares you can afford in copper — as they would all want cars, TV sets and mod cons in their newly wired homes — let’s take a long look at what we can feed the 300 million mouths. Obviously beef won’t be a big seller in India, but I am sure they would love to dine on sheep and goat meat. Our dairy products will be a must for both countries, as they learn to eat ice creams and launch into other niche products. And then there are the wool and possum garments. Total fashion at the end of a credit card. 300 million people wearing five or six garments each, plus socks, and there’s a market that we will make the possums more than nervous. But wait, there’s more! 300 million people who want to drink wine! Well, they haven’t realised they want to drink it yet, but they soon will. There can be ships that can backload our wine, food and clothing and bang, New Zealand lifts the whole economy up as many notches as the Indian and Chinese have. Well, I can dream.

This is why I am very proud of the progress of the Primary Growth Partnership. This government-industry initiative, launched just 20 months ago, has so far pledged a staggering $477 million dollars to primary sector innovation. With projects underway across a range of our key primary industries, this demonstrates our commitment to lifting productivity. The economic outlook for New Zealand is brighter than some would have us believe. Our commodity prices are at record levels, new markets are going from strength to strength and our agribusinesses are on top of their game. If you want see to see the engine room of our economy running at full steam, I suggest you head to Fieldays.

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DEER

June 2011

HINDSITE Canterbury Branch NZ Deer Farmers Assn Sponsored By Mountain River Processors Ltd

North Canterbury deer industry focus farm selected By Wayne Allan — Focus Farm facilitator Sam and Mark Zino have been recently selected as the new Canterbury Deer Industry Focus Farm hosts. Their farming operation at Hawarden was selected following the conclusion of the three-year programme on Mendip Hills. In partnership, Sam and Mark Zino farm the family farm Flaxmere — 535 hectares with a small area of irrigation — and Kanuka Downs — a 313 hectares hill and downland block. Kanuka Downs is partially deer fenced (90ha) and runs a deer and cattle breeding operation of 520 hinds and 150 cows. At weaning the fawns are transferred to the 40-hectare deer finishing unit at Flaxmere, where around 450 fawns are finished or grown out as replacements. The replacement hinds and heifers return to

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Kanuka Downs at weaning the following year. The Flaxmere deer finishing unit is partially irrigated with 20 hectares of long line sprinkler irrigation, with further sprinklers and a pivot outside the deer unit. In total there are approximately 93 hectares irrigated on Flaxmere. In addition to the deer and cows, the property also runs 2,200 high performing ewes, 650 mated hoggets, 16 hectares barley, grazes 100 dairy heifers, and winters 600 dairy cows. The Zinos have clear goals to grow their farming business, allowing succession to the next generation. They are focussed on achieving cash profits and have clear targets for improving production, they also see benefit in expanding the deer enterprise, initially through further fencing. Specific Targets medium term: •

Increase reproductive rates of young hinds from 70% to 90% (fawns weaned to hinds mated)

•

Increase fawn weaning weights from 53kg to 63kg (at 1st March)

•

Increase finished carcass weight from 53kg to 63kg (median sale date 10 December)

These are challenging targets, and realistically are unlikely to be achieved over the three-year span of the Focus Farm programme, however the Zinos believe that — with the support of AgResearch scientists and the community group — they are achievable within five to eight years. For those following their progress, and attending the field days there should certainly be some good messages coming from this programme.

Sam and Mark Zino

A small steering group has been formed to assist with the direction of the programme. Lyndon Matthews, a local deer farmer, has been appointed the Chairman of the group and Wayne Allan, an Agricultural Consultant from Lincoln, the Community Group Facilitator. Other members of the group are deer farmers Cameron Blakemore and Scott Hassall, David Stevens (AgResearch) and Tony Pearse (DINZ). The Deer Industry Focus Farm programme is funded by Deer Industry New Zealand, NZ Deer Farmers Association, Deer Research and AgResearch. Over the course of the three-year programme topics to be covered will include; improving reproductive performance in young hinds, a carcass yield trial comparing red versus hybrid animals, maximising velvet returns, best environmental management practices, and effective Johnes management programmes. The first field day is to be held on farm in July, at a date to be confirmed. The day will provide an introduction to the property and goals, winter feeding and setting up for spring. Input from the community will be invited as to the direction of the programme for the next three years.

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June 2011

By Lorne Kuehn

Right between the eyes

When I was young and fancy-free, in other words not married and encumbered with the responsibility of raising children, I was able to indulge in many outdoor pursuits. One of my winter passions was that of ice-fishing.

mouth and hit me, thwack, right between the eyes. The trout started to sink back down the hole and I dropped down and caught it by the gills before it disappeared beneath the ice. So I had a nice lake trout for my pains.

Ontario is blessed with many lakes, most containing lake trout and other game fish. I would often spend a weekend with friends many miles north of Toronto, fishing in huts through prepared holes in the ice. The ice could be a metre thick, so using a heated hut in this fashion was comfortable fishing indeed.

I also had a fish hook inserted several millimetres into my skull, with the lure dangling alongside my nose. Thank goodness my head had been right over the hole, otherwise I could have had an eyeball punctured and probably lost sight from that eye.

On warmish days, I would leave the hut and wander over the frozen lake, looking for nooks and crannies where fish might lurk — in remote bays or out from frozen creek beds. The area near the huts often got fished out over the winter. Even if the proprietor baited these holes over night, there was often a shortage of fish at the hut holes. This meant of course that I had to carry an ice-auger to put a hole through the ice by drilling down as a farmer would in augering a fence-post-hole. Usually the effort in getting through the thick ice was worth it because one was able to meet up with fish that were not as smart as those still hanging out at the ice-huts. One day I had done just this, and happened to catch a good-sized trout in my icehole. As I drew it up clear of the surface, the hook shot out of its

So, I walked back to my companions at the ice-huts, carrying my fish and gear. They thought that it was a huge joke about the hook in my head and made a number of ribald observations at my expense. They also did not want to drive me to the nearest hospital (in a town forty miles away) to get the thing removed. Of course, they had been drinking (as was usually the custom with icefishermen). It was probably not a good idea trusting them to drive. Besides, they were busy fishing. Luckily, I had not been drinking and was able to drive, so I drove myself to the hospital alone. When I got there, I was taken in to see an old general practitioner. He said that he had handled this sort of thing many times before. He told me to look sideways at the wall, then took a pair of pliers and in one painful wrench he tore the hook out of my skull.

I was too shocked and overcome with pain to speak. He then quickly sewed up the bleeding wound with several stitches (no anaesthetic or antibiotic) and told me to be more careful in the future. This procedure brought tears to my eyes. All up, I was only charged $5 for the operation which had been over in a flash. I was out of the hospital in five minutes, go.to whoa. Still, it had been a lucky call that I had got off so lightly, catching a lovely fish and retaining my eyesight. The fish tasted even better for all the trouble that it had caused me.

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6

WATER

June 2011

Dr H2O on Irrigation Management and more

With Dr Blair Miller

Irrigation efficiency Irrigation efficiency is a term that is bandied about regularly these days. Rightly so as it is a Key Performance Indicator (KPI) of the performance of your irrigation systems. Many people will have had irrigation evaluations done on their property and have read reports on the efficiency of their irrigators.

overall lower irrigation efficiency. But getting the water on evenly over the field is only one aspect of irrigation efficiency. Depth of application reviewed in relation to available soil water holding capacity, application rate and return period are all fundamental to the efficiency of your system.

The focus is often on the Distribution Uniformity (DU) or the Christiansen’s Uniformity Coefficient (CU) which are very important aspects of Irrigation Efficiency, but not the only measures to be considered.

Depth of application is simple. Measure or calculate your soil water levels and then determine the deficit between this and field capacity. Putting on a greater depth than this will result in exceeding the water holding capacity of the soil and drainage will occur, which is an economic and environmental loss.

Both DU and CU focus on the field distribution of water as applied by the irrigator. They are usually determined by measuring the depth of water falling into a grid or line of buckets or cans during an irrigation and by statistically analysing the variation in depth collected. Looking at irrigation efficiency more closely there are any number of definitions in the literature, but let us take a brief look at the overall picture of your irrigation system. DU or CU are fundamental. We need to maximise wherever possible because uneven field distribution of water results in over/under watering and

Application rate is also not a hard concept, but talked about far less than uniformity. The issue with application rate is when water is applied at a rate (normally described in mm/hour) that exceeds the soil’s ability to absorb it, which is called the infiltration rate. When this happens, surface redistribution of the irrigation occurs with water running to the low spots. So even with very high DU or CU, if your application rate is too high for the soil, redistribution can occur and the result is similar to applying the water in a non uniform fashion from the irrigator.

Another issue relating to high application rates is the potential to create a process called preferential flow. When water applied at low application rates infiltrates into the soil, it moves around or over the soil particles in what is called an unsaturated hydraulic state. During heavy application events — when water starts to exceed the infiltration rate of the soil, and pond on the surface — every macro-pore (worm hole, crack or fissure) can transform into a type of pipe and rapidly transfer water away from the target root zone. Water no longer has to move around the particles and now travels easily in a saturated hydraulic state. Lateral booms, rotary booms and long pivots are examples of irrigators that, if not well-designed, are likely to put large amounts of water onto the soil in very short periods of time, creating high application rates. Return time is often a very large limiter of efficiency in irrigation systems. Return time is the period (normally days) it takes to return to the same part of the property to apply the next irrigation. The required return time is related to the soil’s water holding capacity and in Canterbury is often stretched out too long with 12–15 days not uncommon on soils that reach stress point after 8 days in peak summer conditions. If you decide the evapotranspiration rate is 5mm/day and you will be back in 12 days, the calculation would be to apply 60mm this pass. In many cases you are just kidding yourself as your soil could potentially only hold 50% of this, meaning 50% is wasted. With centre pivots, the issue is reduced but, more and more, irrigators still utilising guns, linear booms or rotary booms need to really consider how well their return times match their soils if they wish to improve their overall irrigation efficiency. Now, going further, you need to look at the hydraulic efficiency of your pumping and reticulation system as it is all part of your overall efficiency. But we will save this for a future article. Blair Miller of Sicon Ltd Rural Services has a PhD in Soils from Lincoln University and is available to assist you with developing an irrigation management system for your operation. Please feel free to contact him on 03 318 8320 or blair@sicon.co.nz if you would like some assistance.

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WATER

Irrigation Issues Dr Tony Daveron

The last month has been amazing weather. Growth galore, nothing to eat it, sowing up to date, nothing drowned out — almost good harvest weather. Not quite what one expects for the month of May — the end of autumn and the beginning of winter. This month, a little look at where we have come from over the irrigation season and what we might wish for over the three months of winter that have just started.

weather experienced. It was pleasing to see during my travels about that no-one was tempted by the warm and dry weather to start up irrigators. Well done to those who took advantage of the ample soil moisture following April rainfalls, heavy dews and low crop water demand.

One would hardly think we are in winter — though I should be careful writing of the lack of winter thus far. Rainfall is below average, temperatures are above average and growth is also above average. Thank goodness May is still a month of autumn so ‘Indian Summer’ could be aptly applied to the

Given we can agree the irrigation season is finished and hopefully it will be at least four months till it starts again — where are we at looking ahead to that next season? As the water level plot opposite shows for M36/1926, 78.9m deep in the mid plains, we are in pretty good shape.

No matter how high the temptation to irrigate to keep everything growing, there was no irrigation.

For example: • The water level dropped just over 7m during the irrigation season, from 39.5 metres below ground level (mbgl) in October to 46.7mbgl in February • Some of the volume associated with that 7m drop is abstraction for irrigation and other purposes, and some for the environment (the natural depletion of the groundwater) • At 46.7mbgl the groundwater level is a long way above the lows of the earlier 59.3mbgl in 2006 and 59.8mbgl in 2008 • Recharge is evident, albeit very slow, with a rise of just 0.4m since February (it could have been more, given there is no March reading)

June 2011

7

• This rise is probably just the ‘kick-back’ resulting from the shut down of everyone’s pumps. Not wanting to be the ‘gloom-merchant’ for winter, it would be really nice to get some dirty weather now. For the sake of everyone — irrigators, scientists, resource managers, environmentalists and the general public — it is better to start with the tank full than half empty. So ‘dirty weather’ — bring on some rainfall like we had in May 2010. Remember that far back? Looking at my diary it was 16mm, then two days later another 16mm, then 21mm, 73mm, 35mm and 72mm. That might be a little

extreme, but the water plot shows that is exactly what is needed to fill the pot. Now is the time to get that dirty weather. Then everything we get for the

rest of the winter is a bonus — the pot just keeps getting full and hopefully will overflow to the next aquifer down. Enjoy winter.

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8

WATER

June 2011

A fresh start for fresh water

Weather Watch

By Amy Adams

Water is New Zealand’s most valuable natural resource, and nowhere do we know this more than in Canterbury. Our water gives us a competitive advantage over other countries in farming and tourism, and sustains our Kiwi pastimes of swimming, boating, and fishing. Unfortunately, water quality

has been deteriorating in parts of the country, and some of us face water shortages during summer. It’s important that we have a plan in place to make the most of water’s economic potential, while better caring for our precious lakes and rivers. The recently announced National Policy Statement on fresh water management

gives significant investment for irrigation projects and more money to clean up New Zealand’s rivers, lakes and aquifers. This takes effect from July 2011 and gives clear direction to local councils on fresh water management. It also sets limits on water quality and how much fresh water can be used. Increased irrigation will help build a stronger economy and provide more jobs and higher incomes for New Zealanders. Budget 2011 allocated $35 million over five years to help irrigation projects get underway. We’re also proposing to invest up to $400 million of equity from 2013/14 in the construction of regional-scale irrigation projects. This shows potential investors that National is serious about accelerating better irrigation systems for New Zealand. We also need to turn around deteriorating water quality. So far, $264.8 million has been committed to help clean up lakes, rivers, and aquifers. This includes a $15 million contestable fund for communities with historic water pollution problems. These exciting initiatives are just a start for our improvements to fresh water management. We will continue our work and make further announcements next year, as we continue building a stronger economy, create jobs, and boost living standards for all New Zealanders.

May was a warmer than normal month for most of New Zealand, including Canterbury. There were many days in the month, especially the second half of the month, with northerly quarter airflow over New Zealand, and few days with colder southerly airflow. Several depressions moved across the country from the central Tasman Sea during the month, while anticyclones stayed mainly near the South Island. In Canterbury the mean temperatures for May were around +1.0deg above normal, with night time temperatures especially above normal and no significant frosts. Despite this warmth, sunshine hours were below normal by 10–15%. Rainfall was 20–50% below normal in most parts, while on the main ranges, totals for the month were more than 50% below normal. So far June has been like May, with warmer than normal temperatures, little rain, but normal to above normal cloudiness. This has been largely due to continued periods of northerly airflow over the country, with little air arriving over New Zealand from the south. In the tropical Pacific, sea surface temperatures remain a little below normal, but with the warming evident in the last months continuing — indicating that the current La Niña event

is steadily weakening. The Southern Oscillation Index remains positive, indicating ongoing La Niña conditions. The current La Niña is weakening in the Pacific. This weakening is likely to continue through June and July. Later in the winter the tropical Pacific may return to near neutral conditions, but there are increasing indications that La Niña will re-establish itself during the spring, and here at Blue Skies we continue to expect that to be the case. With a weakening La Niña, weather patterns over New Zealand usually become dominated by periods of anticyclones and depressions, with only relatively brief and weak periods of westerly airflow. There is usually more northerly, and sometimes southerly, airflow, and weather systems can often be slow-moving over or near New Zealand — bringing long periods of winds from directions other than west.

We have seen this pattern in April and May, and expect it to be dominant through to August as well. During the rest of June and early July we expect to see prolonged periods of southwesterly airflow, with reduced rainfall, increased sunshine and pleasant daytime temperatures, but cold nights. Northwesterly winds will be largely absent. Mid to late July may see more easterly airflows, with depressions moving over the country, bringing increased cloud cover to Canterbury, and probably more rain and snow than normal. Temperatures are likely to be colder than usual by day, but milder at night with fewer frosts. August may well see a return to dominant anticyclones with frosts and increased sunshine. There are some indications that September will bring more southwesterly airflow again, with near normal rainfall and cooler than normal temperatures.

Forecast – Canterbury Rainfall

July

August

September

Temperature

Sunshine

Airflow

Wetter than Near normal normal

More easterly Cloudier airflow and low than normal pressure systems

Drier than normal

Near normal

Sunnier More than normal anticyclones

Near normal

A little cooler than normal

Near normal

More southwesterly airflow

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RURAL PROFESSIONALS

June 2011

9

Money Talk

With Andrew Wyllie

The 2011 referendum Our next general election is scheduled to take place 26 November 2011. At the same time there is to be a referendum on whether NZ retains the MMP voting system. The referendum papers will ask two questions. The first question will ask all voters to decide whether NZ should retain MMP as its voting system. If more than half of the voters indicate that they prefer to retain MMP, the Electoral Commission will conduct a review of the workings of the way MMP works. If MMP is retained there are a number of issues which need to be addressed in the way it works. The second question which will be asked is, what system would you want to implement if MMP is rejected by the electorate? There are four alternatives: (i) First Past the Post. This was the system used until MMP was introduced and its workings will be familiar to most voters. It is also the most simple form of voting. (ii) Preferential Voting. This is the system used in Australia. It is compulsory for all who are enrolled to vote at Australian elections. Voters rank the candidates in the order of their own preference and a candidate who gets more than half of the votes wins. If no candidate gets more than half of the first preference votes, the candidate who has fewest number ‘1’ votes is eliminated and their votes go to the candidate each voter ranked next. The process continues until one candidate gets more than half of the votes. (iii) Single Transferable Vote. This system has some similarities to preferential voting but with some additional features. They rank the candidates in the order of their preference, or they may vote for the order of preference published by the political party of their choice. (iv) Supplementary Member. This system has similarities with MMP with certain differences. Further information is needed on how the alternative voting systems work in practice and the advocates of each system will need to explain clearly the advantages and disadvantages of each system. Some features of the systems are quite clear, and one of the major issues is whether coalitions or arrangements with other parties are essential before a government can be formed. With FFP, Preferential Voting, and Supplementary Member Systems, coalitions are not usually needed, but with MMP and Single Transferable Vote Systems coalitions are usually needed. NZ voters have already seen the workings of coalition governments during our time with MMP. Coalitions, in this writer’s view, should be avoided as far as possible.

With some decent frosts in the last few days, winter has finally arrived. A mild autumn has ensured many are well set up for the coming cooler months while strong commodity prices across the board will keep a smile on many farmers’ faces.

financial sector assets. The New Zealand market, lacking these exposures, rose 5.4% over the last quarter and is up 15.9% for the last 12 months. While Telecom did contribute significantly to the increase, the market rise was broadbased with rises outnumbering falls 7:3.

A combination of high oil and food prices, together with an earthquake and tsunami in Japan, has resulted in slowing global economic growth. However, growth rates remain positive and economies are more likely to be experiencing a mid-cycle slowdown rather than an end to the recovery. The latest United States non-manufacturing data for example, continues to support growth.

For fixed interest investors, lower growth forecasts have resulted in longer term interest rates falling slightly, despite increasing inflation expectations. The extent of global borrowing and the end of quantitative easing was also not enough to lift longer term interest rates. NZ interest rates reflected the global movements, so that 10 year rates now sit around the lows established post the worst of the financial crisis. Shorter term interest rates also fell, with overnight cash rate increases now expected later this year. Improving business sentiment may mean that this increase is brought forward, but, with more households now having floating rather than fixed rate mortgages, the rate increases can be less than usual. For reset securities (where the interest rate is adjusted periodically) the longer timeframe before rate rises commence means further delays before the current price discounts contract. However, these securities remain relevant given this is likely to be the low point in the interest rate cycle.

The index still indicates that growth was better than expected, and encouragingly the employment intentions part of the survey supports much higher employment levels than those experienced in May. Debt levels however still remain too high in both household and government sectors. This remains a generic risk and deleveraging is likely to continue for some time yet. Looking at equity markets, the returns have been mixed with the sentiment shift and the slower economic data. The strong New Zealand dollar over the period was a further factor in lower international equity returns. Japanese markets were the worst performing market, impacted by the March earthquake and tsunami. Japanese industrial output, employment and retail sales were all immediately affected, while electricity outages will have a more prolonged effect, given the length of time needed to replace electricity generation. Emerging markets recovered some performance after outflows stabilised. The dominance of commodity and financial exposures meant the Australian equity market also fell, down 2.6% for the quarter — but still positive over 12 months, up 6.3%. The concern was that if commodity prices had been boosted by quantitative easing programmes, what would happen now these are ending? Financial stocks were similarly sold down, given the potential impacts of bail-out packages and restructuring on

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This article has been prepared by Bessie Paterson, an Associate with Ronald Angland & Son solicitors, who may be contacted on Tel: 03 349 4708 or e-mail bessie@anglands.co.nz.

Offeringthe the best best Offering in legal advice legal advice and john@anglands.co.nz and service service Bessie Paterson throughout Canterbury wide Hornby (03) 349 4708 Canterbury bessie@anglands.co.nz

Andrew Wyllie is an Investment Advisor for Forsyth Barr in Christchurch. To contact him about Portfolio Management, fixed interest or share investments email andrew.wyllie@forbar.co.nz or phone 0800 367 227. The comments in this note are for general information purposes only. This article is not intended to constitute investment advice under the Securities Markets Act 1988. If you wish to receive specific investment advice, please contact your Investment Advisor. Disclosure Statements for Forsyth Barr and its Investment Advisors are available on request and free of charge.

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It will be an interesting referendum and all voters should give the questions serious consideration.

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10

June 2011

Irrigation and broadband crucial for our farming future our shores and sustaining our recreation. It’s a fact of life that the question of freshwater management brings with it competing interests. Kate Wilkinson Minister for Food Safety

Water is our most valuable natural resource. It gives us a competitive advantage over other farming nations, and plays a big part in enticing tourists to

We need to make the most of the economic opportunities that water provides, while protecting our environment. I’ve heard plenty of absurd rhetoric since becoming a minister. There is a narrative

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We’re a nation that is built around our primary industries. We’re good at it and we continue to get better. It’s a matter of actively working at how we can improve and increase our productivity in a way that is sustainable. This will lead to a stronger economy and higher paying jobs. It’s a long term objective and this Government is willing to invest in it. It’s impossible to manage natural resources in a way that will please everyone and water is no exception. But we can be smarter about it and set a clear direction for the future. Water quality is deteriorating in parts of the country and this is going to be addressed in our Fresh Water Package. It includes a National Policy Statement on fresh water management, significant investment for irrigation projects, and more money to clean up New Zealand’s rivers, lakes, and aquifers. It’s important that we put a plan in place so we can achieve effective change, and I know farmers have taken a close interest in our proposals. Increased irrigation will help build a stronger economy and provide more jobs and higher incomes for New Zealanders, which is why the Budget allocates $35 million over five years to help irrigation projects get underway. Then there’s an additional $400 million of equity from 2013/14 in the construction of regional-scale irrigation projects, showing just how serious the Government is about improving irrigation. These initiatives represent a major step in unlocking water’s economic potential. NZIER research suggests the fund could support 340,000ha of new irrigation, which could boost exports by $1.4 billion a year by 2018, rising to $4 billion a year by 2026. It’s a good package that the whole country can support. In a similar vein, the confirmation that work will soon start on bringing ultra-fast broadband to Canterbury is a huge boost for our region. The first receivers will be businesses, schools and medical

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facilities. This is great news for the education of our children and the growth of our local companies. Our schools will be able to share resources such as physics and IT teachers. Elsewhere, university and polytechnic students will be able to learn remotely, with tools such as high definition video conferencing. Health providers will be able to send X-rays in seconds, rather than days. This will save time, money, and ultimately, lives. Patients will be able to contact specialists remotely, either from home or from their local GP clinic. Businesses will be better connected to their markets both in New Zealand and around the globe. At the same time, professionals such as accountants, lawyers, and advisors will be able to offer their services to national and international clients. The $1.5 billion investment in ultra-fast broadband is complemented by the Rural Broadband Initiative, which is rolling out much faster broadband to our rural communities. We’re spending money where it’s needed and we’ll continue to work hard to set our nation on a more productive and stronger economical track.

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June 2011

All about growing

Soil Matters

Instruction in organic horticulture is now well established at the Lincoln-based Organic Training College. The college delivers organic horticulture courses for Telford Rural Polytechnic, which is now a division of Lincoln University.

with Peter Burton

Digging for information Digging holes in pasture near Takaka recently provided a wealth of information. The site visited was an area close to the coast that had been regularly cropped for a number of years, with the soil-applied nutrients being conventional high analysis water soluble N, P, K, S, inputs. Over a period of several years, crop yields declined to the point where it was deemed no longer financially viable to continue cropping, and the decision was made to return the area to pasture to be rotationally grazed. The reason for the decline in yield was not the lack of major growth nutrients, but a steady decline in humus. Humus is the result of the breakdown, carried out by soil organisms, of plant matter. The decline of humus resulted from both regular cultivation, with soil exposed to the atmosphere for prolonged periods, and the probable overuse of soluble fertilisers, particularly nitrogen. My initial visit to the area was three years ago, soon

after the initial application of a remedial nutrient input programme based on local Golden Bay Dolomite, along with soft phosphate rock and elemental sulphur.

more than 90% covered in a range of pasture species, all with their crowns close to the soil surface and there were no puddles although there had been heavy overnight rain.

At that time, as it was at the time of the recent visit, there had been a great deal of heavy rain during the month before. The soil had been hard underfoot, with few earthworm casts visible and the grass plants were growing with their crowns well above the soil surface. Although a sand based soil, there were puddles covering a significant area of the paddock.

Digging a number of holes to the subsoil depth of about 300mm, a little over a spade depth, showed that the majority of plant roots were going straight down. Many of the root ends at 250–300mm were white and fine indicating they had recently grown, with few darker roots indicating ongoing breakdown of old root mass.

Now the soil is soft underfoot and feel is a valid measure when carried out regularly, with the surface almost entirely covered in worm casts, some of which were very large. This indicates the presence of deep burrowing worms along with others working closer to the surface.

There was no obvious break line at 75–100mm depth indicating the soil’s ability to rebound from the pressure exerted by stock feet. A truly healthy soil does not compact under rotational grazing regimes where stock are well fed and on areas for a maximum period of 48 hours.

Although recently grazed, there were few obvious dung patches and only in the wetter hollows were urine patches obvious. The soil surface was

11

The next year-long course, which begins on 3 October, will be the fifth intake for the college. Students need no prior qualifications or experience to commence Year One and can study full or part-time. Those who have some horticultural background can go straight into Year Two. An added appeal of the course is that it has zero fees, and for the first time Year One students will be eligible to apply for a student allowance for the full-time programme. Course Director Bill Martin says it works well to start the course year in October. “The organic horticulture course is all about growing, so we want to start the course in spring when it is the right time to begin planting.” Year One students have their own small plot to grow vegetables and the Year Two students have the option of

Students thinning carrots

joining the Stepping Stone programme — a semi-commercial venture that gives students a real taste of organic horticulture as a business. The students grow vegetables under the guidance of a mentor and sell them at a produce stall on campus and other organic outlets. “The Stepping Stone programme gives the students experience in a commercial environment without any risk. It’s the icing on the cake for a lot of the students here,” says Bill Martin. As well as the year-long organic horticulture course the college is also offering short courses in sustainable farm management, and a range of practical skills like tractor and chainsaw use. The sustainable farm management course will be run part-time and is aimed at people already working on farms, or those who want to manage their lifestyle block sustainably and organically. It will offer agribusiness skills and innovative techniques for farm management. The course will be run for two days a week over six weeks, starting on 23 June.

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12

COUNTRY MOTORING

June 2011

Petrol verses diesel — the debate continues! We drive the new Mondeo Titanium from Ford, and the i45 Elite from Hyundai to find out which rival picked the best motive power. The i45 while being all new is the replacement for Hyundai’s long serving Sonata. Sad to see a well loved name disappear but the svelte coupélike design and genuine big car feel on the road makes up for it, as the i45 vies for market share against Camry Maxima and even the two Aussi stalwarts Falcon and Commodore The i45 is much bigger than its predecessor, almost matching Hyundai’s rangetopping Grandeur. The i45 has

a stonkingly powerful 148kw 2.4 litre petrol four-cylinder motor that produces 148kw at 6300rpm and 250nm — as well as the big bodied sedan with its 2 litre petrol engine churning out 122kw and 198nm, and almost matching the Nissan Maxima in size. I liked the nimbleness despite its dimensions. The raft of clever and thoughtful touches and technology that comes standard on the top spec Elite model is available as an option on the lower spec models. Heated seats for four, push button start, auto wipers, auto headlights, auto dipping interior mirror, paddle shift gear

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selection and even standard mud guards! What’s hard to describe is the feeling of solidity, wellengineered and high-quality build that is evident both at rest and more particularly on most road surfaces. Two omissions were a diesel option (from a company that prides itself on its diesel model range), and standard Bluetooth. Both will be available in the future though, given its target market, the phone technology is its only major gap. Starting from $41,990 for the 2 litre to $51,990 for the 2.4 litre Elite Limited model with a couple of 2.4 litre models between the 6 speed auto only range is wellpriced in today’s market.

The all new i45 is the replacement for Hyundai’s long serving Sonata

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showing the leap that Hyundai has taken in the production of everyday usable large cars. The boot was enormous — taking all five passenger’s overnight gear as well as a picnic and seating equipment. Capable of also towing 1700kg braked, the i45 was happiest on the seal, though a little metal road driving showed how well insulated the underbody was. On the release of the i45 last year we reported that it would be well received, and sales have backed that up — as well as international accolades and awards. A 5-Star ANCAP rating with all the latest safety equipment, as well as luxuries like full-length sunroof and heated leather seats for all in some models, shows the direction Hyundai is taking. I found that the i45 with the very willing 2 litre motor, while down marginally on power at 122kw and 198nm, is actually my pick of the range. The top model Mondeo Titanium replaces the familiar Ghia badge and will be used across several new Ford products. In fact the next to use it will be the Territory Diesel that I drove recently. What is so special about the new Mondeo is the absolutely astonishing level of technology included as standard. Put simply, it includes

almost everything that the highspec European vehicles do, at a third of the price. In fact it presents a serious challenge to spending $150,000, when the Mondeo Titanium lists at $54,990. There are seven models in the range, which includes a wagon. The hatch versions start at $42,990 for the petrol 2.3 litre 118kw model What is impressive is just how usable the electronics are. Some take a moment or two to get to grips with, while others are so simple it’s strange they’ve not been incorporated before. Looking at the alphabet of new acronyms might seem daunting, though in reality it is incredibly easy An example being the LDW or Lane Departure Warning. A graphic of the car appears on the dash screen in front of the driver. Working off the painted white lines on the road each side of the car, a row of LED lights glow. Green on both sides means you’re in the lane, though if one turns red, then you’re veering over the line on that side. To reinforce the message the same side of the steering wheel vibrates lightly as well. Simple and very useful in traffic, though not so good on country roads with only a middle lane marked or nothing at all, as the sensors

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13

June 2011

Southern Woods Nursery — not flashy but fun! Do you have fun growing plants? At Southern Woods Nursery we do, and we like nothing better than sharing our plant passion with others. Our passion rubs off the second you drive in our gate with our extensively planted grounds — including the best hedging displays in the country. With over 300 years of combined staff plant experience and 23 years of operation, we feel that our plants, service and your overall experience are as good as any. We can help if you are looking for rare native plants, a block for carbon forestry,

heritage and high-health fruit and nut trees, avenue planting, wetlands for effluent cleansing, ornamental trees and shrubs, firewood trees, natives for riparian protection, trees for stock fodder, and of course hedges and shelterbelts to keep the wind at bay. We aren’t flash, but we are reliable and we supply advice and plants that work. Check out our website — www.southernwoods.co.nz. Come and see us – Main South Road, Templeton. Phone us on 0800 800 352.

Fax us on 03 347 9223, or carrier pigeon your enquiry or request for a free catalogue. TO DO NOW: • Plan and plan some more – give us a call for assistance • Order plants • Prepare planting sites — knock out weeds, rip, cultivate, fence • Plant deciduous trees and tough conifers • Don’t plant more tender plants until late winter and spring • Watch for wet spots and address the problem prior to planting

The top model Mondeo Titanium replaces the familiar Ghia . . . continued from page 12

only work when they can read a line. If you’ve ever used cruise control and been annoyed at having to connect and disconnect in different speeds of traffic, Ford now incorporate ACC Adaptive Cruise Control, which senses the speed of the car in front and automatically increases or decreases speed to maintain a safe distance. Overtaking a slower car is simple as the accelerator overrides the ACC until you’ve passed the slower vehicle and then resumes the set speed. The other really useful addition is BSD Blind Spot Detection which has a sensor in the exterior mirrors that picks up a car or obstacle in the area not covered by the mirror, and lights up a small orange LED in the corner of the mirror when it picks up a vehicle. In practice it is really useful and intuitive. The 5-Star ANCAP rated Mondeo features Bluetooth hands-free with voice control, ESP or in Ford-speak DSC as well as ABS, TC, EBD, BA, and eight airbags for the entire range. The top models add front and rear park-assist, rainsensing wipers, dual-climate air, auto headlights, USB port, six-stack CD player, AM/FM radio, and either 17 or 18 inch

wheels. The only additions I’d like to see are a rear camera and sat-nav. Our Titanium in Frozen White also had a sunroof and leather seating — heated in front — as well as the sports suspension and cornering headlights. The interior of all Mondeos is spacious easy to access and alight as well as being generous five-seater transport. We particularly liked the headroom even with a sunroof, so often an issue in the hatch configuration. The rear door opens to expose a cavernous space that easily swallows my regulation two standard hay bales and some. In fact the hatch is only slightly smaller than the wagon. On the road the front-driven six-speed auto-only Mondeo has impeccable manners and mileeating ability. As with the i45 we drove it from Christchurch to Blenheim and back. The 2 litre common rail turbo-diesel now produces 120kw and 340nm torque. The net effect is one of a significantly bigger engine, as the torque is always available both up and down the rev range. Hills can be driven using the steering wheel gearshift paddles to enable engine braking, as well as to maintain the lowest fuel

use. Even the twisted corners of the Hunderlees and just south of Blenheim required no braking. Such is the flexibility of the Mondeo’s engine that we effortlessly maintained speed without sacrificing fuel economy, which averaged out at 5.1l/100km — Ford claims 5.6,which I feel is very achievable. Cornering is flat with the suspension dispatching undulations and metal roads easily. Towing is rated at 2000kgs braked, putting it almost on par with the fullsized Aussie sedans. For a rural environment the Mondeo is both practical and incredibly economical, while having the benefit of all the latest technology. Petrol versus diesel — both these vehicles are economical and true five-seaters. Without our prohibitive RUCs on economical diesel cars the Mondeo would be the preferred option in terms of operating costs. The i45, though, is a large sedan that thinks it’s a small one — using its abundant power to allow effortless speed and acceleration without the handicap of capacity-ruining low fuel consumption.

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14

DAIRY

June 2011

Cows and Udder Things From Dairy NZ

Take care when transitioning cows to crops says DairyNZ This year’s warm autumn has meant an increased risk of nitrate poisoning when moving cows onto crops in Canterbury DairyNZ says.

He says farmers can plan to correctly transition cows onto crops to avoid any issues elevated nitrate levels may present to stock health.

DairyNZ Developer Steve Lee says higher soil temperatures through May are likely to have resulted in more mineralisation of nitrogen in the soil, and more total nitrogen in the system, even if a farm’s fertiliser N use has been the same as previous years.

“Having a plant nitrate test done will give you an indication of the nitrate levels in your crop, but should not be the only factor taken into consideration when determining how safe the crop is to graze.”

“With sunshine hours up over previous autumns, and with fewer overcast days you might expect lower nitrate levels as growing plants will convert nitrate to plant protein, effectively diluting the nitrate that is present. That’s not the case.”

He says there are a number of management factors that can be implemented to reduce the risk of nitrate poisoning. “Control the rate of intake — a fast rate of intake of a crop with a medium level of nitrate can create similar problems to a crop with a higher level of nitrate consumed at a lower

rate, especially in cows still adapting to the crop. “Avoid putting hungry cows onto crop by feeding supplement first or ensuring sufficient supplement is offered so there is always some available. And allow fourteen days for the animal to fully adjust to the crop. This year the transition may need to be slower than normal to prevent nitrate issues.” He also says to be accurate with crop allocation, especially during the transition phase. “Measure the width of your paddock and get a crop yield done — in a high yielding crop being out by 0.5m with your fence can change the allocation by 2-3 kg DM/cow.

“Control breakouts — always have another break set up in front of the feeding face and/or use a catch-fence. “Lastly, wait until the frost has lifted before offering a new break to your stock.” Steve says with this autumn being different to previous years, vigilance when transitioning cows to crops to ensure cows remain healthy will pay off with cows in a good position to achieve their pre-calving body condition score targets. For more information on transitioning cows to crop and feeding crops to dry cows go to: http://www.dairynz.co.nz/ SouthernWintering

Breaking the barriers to productivity LIC’s MINDA software will be at the heart of its Fieldays’ site this month, as it is on thousands of dairy farms throughout the country. The dairy farmer cooperative’s site, in Exhibition Building 22, will showcase a range of products and services at the annual event at Mystery Creek in Hamilton, starting June 15. LIC marketing manager Blair Hoad said this year’s theme, ‘Breaking the Barriers to Productivity’, covers each area of the co-op — with a focus on how MINDA ties them all into one system and adds value to their business. “MINDA has been around for a long time, but it has grown to be so much more than what many have known it to be in the past. “We want to show the future of MINDA as a wholefarm management tool that puts the farmer in control by providing them with a wealth of information about their business in one place, for them to use the way they want.” Mr Hoad said the full suite of Farm Systems’ products

would be on display, including Protrack and other new upcoming enhancements. The the rest of the site will be split between Genemark, FarmWise, and an area for one-on-one discussions with LIC directors and customer relationship managers (CRMs). He said staff would also be available to speak about LIC’s Artificial Breeding programmes, including Premier Sires and Alpha Nominated, and the topical genomics science. “It’s been well covered in the media and our experts will be there to clarify the issues, provide the facts, and answer any questions our customers may have about the subject.” The Prime Minister, Rt Hon John Key, will also officiate at a celebration at the site for the 50-year anniversary of LIC’s Sire Proving Scheme, on Wednesday at 2pm. Invitations have been sent to past members of the scheme, but LIC is extending an open invitation to all farmers to come along and celebrate the scheme responsible for the reproductive gains enjoyed in Kiwi dairying today.

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DAIRY

June 2011

15

Learning attitude helps Suisteds win sharemilker/equity farmer of the year award It was the acquisition of a breadmaker that set Jason and Lisa Suisted on their path to winning the Sharemilker/Equity Farmer of the Year award at the New Zealand Dairy Industry Awards national finals on May 14 in Queenstown. “When we were contract milking I was still hairdressing,” Lisa says. “So I had very little farming background or knowledge. At that time Jason paid all the accounts and I had no involvement in the farm. I wanted to collect Fly Buys and get a breadmaker but Jason wasn’t shopping in the right places, so I took over the accounts — I knew nothing about it. “I started learning as much as I could about the financial side of the business,” Lisa says. “Something can lead you to a path but it’s up to you how to take it when you get to the beginning.” It is that attitude that led to the Suisted’s winning three merit awards alongside their national title in Queenstown. “We’re coming into our tenth season farming,” Lisa says. “Prior to that Jason was a builder and I was a hairdresser, so we had a change of career. We wanted to get into farming because we wanted to become self-employed and saw farming as a way to do that. The first year Jason was an assistant farm manager and then we stepped straight into contract milking 600 cows. It was a huge step — we knew the farm owner quite well and he had a lot of faith in us. “After three years we went 50-50 sharemilking 260 cows and aimed to double our herd in three years.”

The Suisted’s are currently sharemilking 430 cows in Gordonton, near Hamilton, and entered the Dairy Industry Awards for the third time this year. “It was our third time entering — we took a few years off to have kids — we were the runners up last year,” Lisa says. “We entered to take the opportunity to up-skill that presented itself. We heard through friends that it was a great way to analyse the business, and it is profile building — a way to get our name out there with the aim of getting a larger job.” The Suisted’s showcased their farm’s strengths during the judging process. “You do a presentation to three judges on the farm for two hours. It’s up to you how you want to present your business to the judges — we wanted to showcase our farm and spent time showing pastures we’ve renovated, our livestock and ideal cow. We have really good effluent systems and environmental management systems.” They enjoyed their experience at the national finals. “It was fantastic to get together with the other sharemilkers and equity farmers,” Lisa says. “We were there to make friends and network. At the level everyone is running their business at, it’s interesting to talk to people about ideas on-farm.” Jason credits part of their success to the training he has done through AgITO. He has completed his National Certificate in Agriculture, Production Management, Level

4, and his National Certificate in Agribusiness Management, Business Planning and Financial Management, Level 5. “I found it really beneficial — especially on the pasture side of things,” Jason says. “Coming onto a peat farm after a drought a lot of the pastures were damaged so I utilised the skills I learned through my AgITO training to work out how to renovate them. “Completing my AgITO courses has really helped to advance my career,” he continues. “It gave me the skills to enable me to manage a 600cow dairy farm after only one year in the industry. I was able to take what I had learnt in class directly back onto the farm. “I strongly recommend to anyone coming into the industry, or wanting to advance their career rapidly to get hold of AgITO and kick-start your career.” Jason’s next aim is to do the Resource Management qualification and complete his National Diploma in Agribusiness Management, Level 5. “Over the next 12 months I want to finish it,” Jason says. “We also have a staff member completing Level 3 and moving on to Level 4 training. We try to encourage our staff every year to do AgITO. “There are a number of benefits. The first is that formal training is really important for their CV. Secondly, getting off-farm and meeting other people in courses and talking and networking with others is a good way to learn.

Jason and Lisa Suisted — from breadmaker to winner

they’re doing training — and it’s good for their confidence as well. Doing a qualification puts what they’re learning on the farm into action” “Up-skilling and education is good for their future prospects,” Lisa adds, “We look favourably on prospects who have formal training on their CV.”

Lisa and Jason are now looking forward to the future. “Our short-term goal is to double our herd size again,” Lisa says. “We’d like to move to 650-1000 cows over the next couple of seasons. From there we’d like to work on building equity up in the business so we can purchase some land, but

we’ll remain sharemilking for a few years yet.” Lisa’s advice for other aspiring dairy farmers is simple. “I really recommend everyone to give the awards their best shot in their region. Take up all the opportunities you can to learn and force yourself off the farm to do it,” she says.

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DAIRY

June 2011

Dung breakdown By Dr Tim Jenkins The rate of dung breakdown is integral to the speed of nutrient cycling in a pastoral system. Most pasture shoots get eaten and most nutrients in those shoots pass right out the other end of the livestock, into the dung, because the animal can’t absorb all those nutrients. It is then left up to a complex web of organisms to recycle the dung-nutrients back into the soil to help grow more pasture.

In most New Zealand pastures the surface dwelling earthworms, like Lumbricus rubellus (dung worm), are the best mechanism to speedily vanish this dung. This is because they can physically remove portions of dung and mix them with the soil. In the process, the dung goes through a digestive system teeming with bacteria and yeasts which assist in decomposition right from the start.

A more recent introduction to the country has been a range of dung beetles. I’ve seen them nicely in action in Northland (a tropical species aptly named Copris insertis — translates as ‘dung inserter’). More recent non-tropical introductions by Landcare Research are also likely to be effective in many areas of the country. The different species have varying habits of dispersing dung and mixing it with the soil and

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Dung has a large component of cellulose from undigested plant matter. The main microbial decomposers of the cellulose rich parts are fungi. These can act in the soil after earthworms and other invertebrates have mixed the dung in, or fungi can grow in the dung itself. Pictured are cup fungi (the cup fungi family are in the same order as truffles, but I wouldn’t go foraging for these ones). There are a range of true mushroom fungi that can grow in dung which also utilise the cellulose for energy.

All fungi growing in the dung will be providing more readily available nutrition for the earthworms and a wide range of animals — from microscopic fungi eating nematodes to collembolan/springtails. Large insects can come to feed on the dung, further speeding nutrient cycling into the soil. The breaking down of cellulose can also help retain the nitrogen that might otherwise be lost from dung in ammonia volatilisation (nitrogen going to the atmosphere), nitrous oxide emissions (a greenhouse gas) or nitrate leaching. The main and most efficient

way in which we can stimulate faster dung breakdown is by aiding the level of invertebrates, such as earthworms, in the soil. This involves reducing cultivation, appropriately choosing methods of cultivation (minimal use of inversion ploughing and rotary hoeing), and cultivating when the soil is neither too wet nor too dry (to retain soil structure). Liming is crucial in most soils — not just to achieve a good pH, but also to provide the calcium that earthworms need for digestion (in their calciferous glands) and for stimulating earthworm egg hatching in the first place.

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DAIRY

June 2011

17

New research helps scientists break the Pasture Feed Barrier With funding from the Pastoral 21 feed programme (a joint investment by DairyNZ, Fonterra, Beef & Lamb New Zealand and the Ministry of Science and Innovation), new research has investigated how improvements in both the quantity and quality of pasture species could help farmers to break the pasture feed barrier. The research featured at the AgResearch exhibit during the National Fieldays at Mystery Creek on 15–18 June 2011. To improve pasture production, the plant breeding team at AgResearch Grasslands in Palmerston North, has led research to bring new seeds to farm, using a different breeding system — one that captures hybrid vigour and makes it available in seeds. In particular the research team, led by Brent Barrett, has looked at the use of hybrid vigour to improve breeding progress. Hybrid vigour is the occurrence of genetically superior plants from mixing favourable complementary genes of both parents. It has the potential to both increase yield and to enhance the plant’s resilience to conditions

such as disease or drought. Mr Barrett’s team conducted their first trial to measure pasture yield using perennial ryegrass, managed under sheep grazing at Aorangi Farm in the Manawatu Plains for two years, so that the results would better reflect on-farm conditions. This work found that hybrids improved yield by up to seven percent per year above the better parent, and some hybrids showed up to 19% higher yield in certain seasons. This initial research used six hybrid combinations, and has shown that the concept of using hybrids has good potential for delivering value to farmers via an improved pasture breeding system. The next steps are to test more combinations to search for a hybrid that is successful across all seasons, and to use DNA markers to fingerprint relatedness patterns and help predict hybrid vigour. With ongoing support, hybrid vigour in forages will be able to deliver on-farm benefits within five years. A second project funded by DairyNZ and led by Dr David Pacheco has focussed

on improving productivity by exploiting diurnal changes in the composition of pasture species to enhance animal nutrition. Generally, soluble carbohydrates and dry matter concentrations are at their lowest in pasture offered during the morning, and increase to a maximum level by mid afternoon (up to about one to two hours before sundown). This means that if animals are fed grass in the afternoon, they get a better balance of protein and carbohydrates than if they are offered a fresh grass break in the morning, which is currently common practice. This simple change in management resulted in an eight percent increase in milk solids in trials conducted in Palmerston North with cows in late lactation. Similar responses have been obtained in trials elsewhere. In some cases, this management strategy also reduced the amount of nitrogen that animals released into the environment, but this depended on the magnitude of the dilution of protein by carbohydrate.

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18

June 2011

STRAIGHT TALKING

Outsourcing = job losses = increasing dole + benefit payments And so on, which must add to the nation’s deficit. Down in our southern provinces a virtual hornets nest has been disturbed. That is loss of jobs due to the fact Chinese and other Asian workers are paid peanuts compared with our NZ workforce. Thus Dunedin’s Hillside KiwiRail workshops are about to get rid of some 40 odd factory hands experienced in the art of building rail rolling stock, carriages and locomotives. Many with years of experience, yet the country is bereft of workers with the necessary practical engineering skills. It went down to the wire when KiwiRail neglected to give Hillside the opportunity to put in a bid to build some 500 flatbed railway wagons. Instead the contract went to China. The excuse according to KiwiRail bosses was that it was a “commercial decision” to buy foreign-built locomotives, wagons and containers which “were critical to improving the business”. Workers had described the move as an “unbelievable kick in the guts.” The South Dunedin workshop will be down to 132 employees, and could lose even more qualified workers is this carries on.

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As I understand it KiwiRail is an SOE or which every man, woman and child are shareholders. But what it all boils down to is that qualified Chinese workers are on much cheaper rates than kiwis. But can any economics guru come up with some basic maths. That is taking into account the total effect on the NZ economy. From my simplified version of costs involved, (okay, I failed maths in third form) labour costs at Hillside may be two or three times than those in a Chinese plant. (And this is par for the course for most local manufacturing firms). So the completed wagons are rolled out at the Hillside workshop directly onto railways lines and pulled to where they are needed, presumedly mostly in the North Island, possibly picking up empty containers at Port Chalmers to be filled at various point on the way. What are the costs, if any? The input of raw materials at the Hillside foundry and workshop would involve some costs plus energy costs to produce the various components. But this must also apply to the Chinese plant which will then have to package and transport the finished wagons to a port for export. What are these costs going to be? Then there is the shipping costs to get the wagons to a New Zealand port, plus possible carbon credit payments

depending on how an international ETS is implemented. What does it cost for bulk shipments (FOB) by the time the wagons are unloaded at, say, Port Lyttelton? Wharfage handling costs?. By this time the extra money paid our Hillside workers, I imagine, would have surely been mitigated plus upgrading of plant. Then there will have to be redundancy payments to the workers, dole payments while they seek further work, plus family benefits accruing in some cases. And no guesses as to where the money will be coming from. On the other hand we could lose many of these workers to Aussie and elsewhere. And who can blame them. And then there are the add-ons such as discretionary spending by workers on full employment. Keeping local businesses economically viable, and other downstream benefits, which would disappear if workers bugger off overseas or have to remain on the dole. Can accountants put a value on this? Did the KiwiRail bosses include these factors in their so-called commercial decision. I very much doubt it. It is typical of accountants spreadsheets and tunnel vision with nil regard to the sociological and human aspects of such decisions. And this is happening throughout the land. Many major manufacturers say they are unable to compete unless moving offshore. Why? Economists opine that the per employee production rate is too low. How come, when most modern plants are highly mechanised. Perhaps some head-office staff need to don overalls and have a session in the workshops. Which all brings me to the final point. There is some talk from opposition political parties that the minimum wage be hiked to $15 per hour. A big no-no has come from the Business Round Table and various other business commentators. Will create more unemployment. Create economic disaster. Increase the deficit. And so on. Well, the question I have to ask is: how come the minimum wage in Aussie, far more generous than in NZ, is still internationally competitive production-wise, with much of our workforce hell-bent on migrating to the so-called Lucky Country. So by keeping our minimum wages just above the politically deemed poverty level, how the heck are we supposed to catch up in their (Aussie) standard of living stakes. Does this apply to the full cross-section of employees, or just those on high income levels.? Perhaps Act’s Don Brash and PM John Key may have some answers, but to this writer nothing seems to add up.


June 2011

A significant nitrogen response was seen in all trials. In all trials, the LessN System plots produced more dry matter than urea at the same rate, either sprayed (Spray urea 40) or spread (Spread urea 40) without LessN and produced a similar amount of dry matter to a full rate of urea spread (Spread urea 80).

Independent Canterbury trials confirm LessN’s benefit to dairy industry

In terms of percentage grown above control, the difference between treatments is highlighted in Graph 1.

Recently completed trials have confirmed the huge advantage that Donaghys LessN® can bring to nitrogen fertiliser response. Over the last three years Donaghys have been extremely excited about LessN and the advantages that it can bring New Zealand farmers. The amount of trial work that has gone into the development and testing of LessN is second to none, and the uptake of LessN by farmers on the back of this research has been vast. The latest results are set to add to this uptake.

DM Growth over Control (%)

Graph 1. Percent total dry matter (DM) grown above control (mowing measurements) of six trials.

As usual with any new product, some people have been cautious about up-taking this technology as they are keen to evaluate its performance first, either on farm or through independently run scientific trials. This cautious approach is totally understandable, as with any large investment such as nitrogen fertiliser, farmers should have a level of comfort before deciding to use it on their own farm. For the more cautious farmers, the latest – just released independent trial results should be a great encouragement to start using LessN on their farms. This independent research conducted by IWM Consultancy, Lincoln (www.iwm.inet.net.nz), confirms that LessN has a significant effect on pasture growth rate and dry matter production. The increase in pasture productivity obtained from the LessN System (spraying on 40kg of dissolved urea plus 3L of LessN in a total spray volume of 200L per hectare) was similar to that of using solid urea application at a full rate (80kg/ha).

Control

0

-

-

Solid urea 40

40

Solid granules

-

Solid urea 80

80

Solid granules

-

Spray urea 40

40

Dissolved urea*

-

LessN System

40

Dissolved urea*

3

30 25 20 15 10 5 Spray urea 40

Spread urea 80

LessN system

N Treatments

What these results mean for farmers Increased cost savings The results of these trials have confirmed the enormous benefits that LessN can provide pastoral farmers. Through significantly increasing pasture responses to nitrogen fertiliser applications, farmers can grow similar amounts of pasture as traditional spread urea applications, but with only half the amount of urea applied. This has significant impact on a farms profit as the amount farmers spend on urea is halved.

Table 1. Trial treatments Form of urea

35

Solid urea 40

The trials were large scale. Each trial compared urea application at 40 and 80 kg/ha in solid form, dissolved urea in water at 40 kg/ha with and without LessN at 3 L/ha, and a control giving a total of five treatments. Plots were 4 m wide by at least 30m long. All treatments were laid out in completely randomised block designs (CRBD) with eight replicates. Trial treatments are outlined below in table 1.

Equivalent amount of urea applied per ha (kg)

40

0

The research which included six field trials was carried out between December 2010 and March 2011 on commercial dairy farms in mid and central Canterbury. Treatment applications were carefully timed to fit within the farmers’ grazing cycle of approximately 4 weeks.

Treatment

19

With the recent lift in the urea price to over $700/tonne, and all signs pointing to another lift in the near future, any cost savings in on-farm nitrogen spend will be welcomed by farmers.

Equivalent amount of LessN applied per ha (L)

Less impact on the environment Rightly or wrongly, excessive use of nitrogen fertilisers such as urea has been blamed for pollutions in ground water and eutrophication of lakes around farming areas. With dairy farmers in particular depending on regular nitrogen fertiliser application to enhance pasture growth, dairy farmers are often the scapegoat for any increase in pollution. Global and local environmental pressures will put increased focus on the way New Zealand dairy farmers manage their farms. In order for New Zealand to maintain its ‘clean green image’, dairy farmers will undoubtedly come under increased scrutiny as to how nitrogen fertiliser inputs may affect the environment in relation to water quality and greenhouse gas emissions.

*Dissolved urea treatment is 40 kg urea/ha dissolved to a total volume of 200 L/ha equivalent with water

Donaghys LessN was developed as an additive to nitrogen fertilisers (urea) with the aim of reducing the nitrogen fertiliser requirement through improving efficiency of nitrogen utilisation. This independent research has confirmed that with LessN, farmers can get the same pasture growth responses as full urea inputs with only half the amount of urea applied. LessN therefore provides a valuable tool to the dairy industry to reduce the amount of nitrogen fertiliser being used on farms, which will ultimately result in onfarm savings and less impact on the environment.

Research Results All six trials showed excellent trends for the LessN system. Statistical significance for the LessN System treatment over a treatment with the same nitrogen rate was demonstrated in four of the six trials in either probing or mowing.

®

moreandpasture,

I’m getting

faster cheaper. We have used LessN over the past season. We have halved our nitrogen use without affecting production. We have noticed stronger clover content, more even growth and a thicker and denser pasture sward. d

LessN is definitely a wonder feed for grass. I grazed a paddock and sprayed LessN behind the cows. A fortnight later I had a cover of 3000kg DM per ha. HARRY SCHAT, Te Pirita

MATT & DI NESS, Winchmore

The more pasture you grow, faster and cheaper, the more economical your farm will be. Extensive trials NZ wide have consistently proven the Donaghys LessN System® grows more dry matter, whilst using half the urea compared to traditional spreading systems. With faster nitrogen response and no lag time in plant availability, dry matter will cost you less and grow your productivity. At Donaghys we take pride in what we offer you, and stand behind all Average Nitrogen Response of three different N input systems the products we supply. 30

Be Because I am a dryland farmer, maintaining good grazing pasture around here is a priority. Spraying with LessN, I get the response I need and I’m only using half the urea. LessN works for me.

NICK STEWART, Mid Canterbury

25.1

20

Trial results are an average of 49 trials conducted within New Zealand from Autumn 2007 – Autumn 2010. Average trial length was 25 days. All treatments were spray applications. Urea 40kg/ ha treatment was only included in 42 trials. Four trials which showed no nitrogen response have not been included in the graphs.

15 10 5

10.1

12.1

0 Urea @ 40Kg/ha

Urea @ 80Kg/ha

Urea @ 40Kg/ha +LessN

For lasting benefits to your pasture contact your local Donaghys Territory Managers, Andy Miller 027 271 8795, Peter Shannon 027 434 4716, Jeremy Hore 027 530 8306, Tania Teinakore 027 332 3462, your rural supplier or visit www.lessn.co.nz

IDEATION-DON0107CP

KRIS ORANGE, Geraldine

25

Response Ratio

Th potential of the urea in the paddock The was realised more than a week earlier than if the urea was broadcast by a spreader. The ability to spray LessN along with other products, such as GibbSTART in one pass is brilliant. nt.


20

FORESTRY

June 2011

Organic forestry — part six of a series by Ben Gaia Thinning and stand maintenance (years eight to twenty-eight). That helpful gorse will gradually disappear as the

canopy closes, since it won’t grow in shade. Winds can be a big risk through the teenage years of the trees. Pines are susceptible

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to windthrow in mountain locations and on clay soils or high V-blade mounds. Mixed species will stand up better — poplar roots, for example, can intertwine with pines or other fast species and help bind them to the ground. Coppicing trees that regrow can beat windthrow by having a big root system compared with the top. Keeping and maintaining a good shelterbelt will also help. Drop the inevitable fallen trees hung up in their neighbours, this will save the neighbouring tree, and will reduce fungi spreading from dead standing material. Fallen prunings and thinnings will decay on the forest floor, feeding the stand. Pine slash decays remarkably fast, and pine needles and leaves will build soil. Native species may reappear, housing wildlife like birds. You may wish to raise native trees for the long term, like kauri or totara, beech or kahikatea. Control may be needed for wasps which love old stumps. Bee nests and game species like

ducks should be encouraged — a fire-dam can double as a duck habitat. Wild foods like blackberries and mushrooms, venison, pheasants and hare can be harvested. If the trees are harvested in small areas rather than clear felled, this game harvest can be maintained long term as a valuable by-product of the forest. Deer and pigs provide good edible protein too, though many would prefer to fence these tree pests out of a woodlot. Wild tree-guzzling goats are another pest. Deer will debark and eat small trees, and pigs may dig them right up and will roughen flat pasture. Trees may again get hungry or be prone to dothistroma during these years as well. Alternatives to pines should be planted in very wet areas. Regular visits to your trees will ensure removal of problem plants, dead standing trees, and enable decisions to be made on feeding. Here aerial topdressing of powdered rock phosphates and

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June 2011

21

THE WAY WE SEE IT Bert Quin, Fertiliser NZ

Dicalcic super vs fluidised rpr/s/fine lime – a cost comparison example In this article we look at two different ways to to apply hill country maintenance of say 15 kgP/ha and S (12 kgS/ha as sulphate or 10 kgS/ ha as fine elemental S, plus sufficient lime, in fine enough form, to stimulate soil microbial activity and maintain soil pH. OPTION A OPTION B solid dicalcic Bucket-spread super Fluidised RPR/S/f lime (0-4-0-5.5) (0-7.5-0-6) Fert weight req’d

375kg/ha

200kg/ha

Product cost

$240/t

$300/t

Product cost/ha

$90/ha

$60/ha

$50/t

$50/t

Cartage/ha basis

$19/ha

$10/ha

Spreading cost/ha

$26/ha

Cartage

On-farm processing and spreading cost/ha

$65/ha

TOTAL COST PER HA

$135

Notes — these and other examples demonstrate that there is nothing between the two alternatives in basic cost. However, there are a host of examples that tip the balance very much towards using fluidised RPR/S/fine lime, especially using the patented Futurespread Bucket System.

fixation-reducing additive, urea and urease inhibitor, trace elements, seed, herbicides, etc, etc. In particular, fluidised urea incorporating urease inhibitor is 2.4 times more efficient per unit N than granular urea. That means 10kg N/ha will do the job of 24 as granular! No product suitability concerns (eg damp/ lumpy/dusty/clogging issues); Less waiting time to get the job done; More hectares spread in weather windows.

These advantages include: More even application; Greater accuracy of placement; Total avoidance of pollution to waterways; Not dependent on availability or condition of airstrips; Additives of any type, liquid or solid, can be added on-farm at short notice if feed strategy alters. Examples are Pro-Gibb, humates, DAP and

$135

Other options such as fixedwing application of annual superphosphate plus capital lime (say 1 tonne/ha every five years), or RPR/S plus reduced capital lime are typically slightly cheaper averaged over five years.

However, they have none of the above advantages offered by fluidised RPR/S/fine lime, and are more suited to maintaining soil fertility levels and pH that are already at optimum. What often happens is that, if cashflow is not good when the capital lime is due, the pH can fall to a level where aluminium toxicity becomes a real problem, reducing pasture growth and N fixation by clover, which can have long-term effects on soil biological activity. Lime (and the calcium it brings with it) should be treated no differently than the fertiliser nutrients. That is, we should be striving to keep pH levels as near to the optimum 5.8–6.0 level as possible, rather than swinging widely — say from 5.4 to 5.9 — during a five year cycle. Buyer beware! Farmers must be alert to the existence of unscrupulous ‘muck and mystery’ merchants who use the mask of flash helicopters and very slick marketing to promote the use of ridiculously costly low-nutrient dilute sprays which are claimed to contain additives that will free up nutrients locked up in the soil. This would be good if these additives could be proven to achieve something. Unfortunately they don’t. By the time you realise this two or three years down the track, your production will have fallen 10%. Sad but true.

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Rich farmers When Labour’s revenue spokesperson Stuart Nash publicised the IRD figures for 2009 dairy farm incomes and tax, he got predictable responses from Federated Farmers and individual farmers. Nash pointed out that the average tax for 17,244 dairy farms was $1,506, on an average gross income of $500,000. This tax was less than that paid by a pensioner couple. Nash, knowing that Labour will get precious few votes from farmers, was clearly seeking political capital from urban voters. His absurd claim ignored the 2009 expenses of $558,500, leaving an average loss for the year. Nash picked a bad year following drought and low milk solids payouts. While the 2008/9 forecast was $7.66 per kg, what happened was a drop to $4.20 followed by a recovery to $5.20. Cynical politicians customarily cherry-pick figures that suit their argument. The only realistic way of assessing farmers’ incomes is to do it over

a number of years — so volatile are world markets. Indirectly dairy farmers pay tax through employing 35,000 workers and 10,000 contractors. Included in the industry’s costs of $3.65 billion is interest on debt. With high world milk price today, debt is being paid down which will see a long term diminution of the interest burden. Some farmers, perhaps coaxed by banks into heavy borrowing in an earlier period of high milk prices, having paid too much for their farm, struggle to survive even now. It is worrying that record prices are being paid for dairy farms. The April average was $29,153 per ha, or $34 per kg of milk solids, with a large variance ranging from $19 in Manawatu to $55 in Taranaki. It appears that some farm buyers are still depending upon land capital gain when they pay beyond the land’s earning capacity. Eventually a painful correction, beyond anything we have seen, will catch landowners wishing to

sell, including those facing foreclosure on mortgages. I favour a capital gains tax on land to deter this madness. QV practices to subtract scrub clearance, fencing, woodlots, soil, amenity improvement, etc. would have to be revised to ensure fair recompense for such investments. If such a tax were to be introduced it would be important to reform rating legislation. At present farmers are often subsidising town dwellers, paying rates unjustified by the services accessible to them. The idea of basing local taxes (rates) on land or improved value is absurd. Another anomaly in rating law is the lack of rates relief for areas set aside from farming as protected natural areas and QE2 covenants. One Wairarapa farm has 40% of its land set aside for environmental and conservation purposes. As there are public benefits from such reserves it is fair that local and national government contribute.


22

WOOL

June 2011

Wool Perspective From Rob Cochrane GM, Procurement, Wool Partners International Limited

Season end The 30 June has historically signalled the end of the financial year for many involved in farming, and also signals the final month of the ‘season’ for the wool industry. The current season has been an interesting one with more smiles seen on wool growers’ faces than for more than twenty years. Long may that continue! Recently, I uncovered a Pyne Gould Guinness Ltd auction catalogue from the 1930/31 wool season. The auction was scheduled for Monday, 26 January at 9am at the Caledonian Hall, Kilmore Street, Christchurch, and the wool was on view at ‘our stores Moorhouse Avenue — near Montreal Street’. The sale was noted as the ‘Second Wool Sale’ (for the season) and the order of sale was listed as: 1. NZ Farmers Co-operative Association Ltd, 2. Dalgety & Co Ltd, 3. H Matson & Co, 4. NZ Loan & Mercantile Agency Co Ltd, 5. National Mortgage

& Agency Co. of NZ Ltd, 6. Pyne Gould Guinness Ltd. The catalogue comprised 8006 bales in 916 main lots and 16 star lots. Station brands catalogued included: Temara, Rossmore, Inverloch, Mt Seddon, Db/Kaikoura, Tb/Kahutara, Mt Torlesse, Edgecombe, Parikawa, Dunluce, Cascade, Achenbrae, Moana Maru, Leebrook, The Conway, Clarence, Waipapa, Puhi Peaks, to mention but a few. The vast majority of types on offer were half-bred, however a number of threequarter-bred types were also evident. Only a small number of Romney and Merino types were catalogued. Prices appear to have ranged from around 1 penny per pound for the oddments, with several fleece types reaching up to 6 pence and 3 farthings per pound. The highest price recorded in the catalogue was 8 pence per pound for 13 bales

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of 1st ½ E, branded ‘Inverloch’, on the account of LH Parnham, and purchased by Mair & Co. While the sale was the second for the season for the Christchurch brokers, each wool centre (Invercargill, Dunedin, Timaru, Christchurch, Wellington, Wanganui, Napier, and Auckland) would probably have had four sales scheduled for the entire season, spanning approximately eight months from October. Buyers representing local mills, as well as overseas mills, would travel around the various centres valuing wool and attending the auctions. Several of the buyers in those days actually travelled to NZ for the season, arriving by ship from the UK and Europe, plus Australia — a far cry from today’s world where the majority of exporters are domiciled in Christchurch and only a few travel from Wellington to attend South

Island sales. A wool buyer’s job in the 1930/31 season was highly sought after and they were accommodated in the best hotels, and dined with silver service more often than not — however the training required would have been an arduous task. Nowadays the mystique has been removed with almost all parameters of greasy wool scientifically measured, to the extent that only specialty or odd-ball types need in-depth visual study, to determine value. The current wool-selling season was almost at its end at time of writing, with three remaining auctions before the end of June. As earlier mentioned, the season has been interesting and rewarding for growers, and prices have doubled for many crossbred types when compared to the previous season. The most influential factor determining price movement has been the lack of supply and, although we would all like to see prices continue their upward trend, a number of mills have signalled slight resistance to any further increases. As long as we can keep our standards up and ensure New Zealand wools are held in high regard, our growers will reap the benefits. That’s my view.

Wool growers likely to be financially disadvantaged by Commerce Commission scouring monopoly decision “The Commerce Commission’s decision allowing a wool scouring monopoly that it says will reduce competition, and might lead to price rises, flies in the face of the commission’s statutory role to prevent such gross market distortions,” said the chairman of Wool Equities Limited (WEL), Mr Cliff Heath. “The commission’s decision to allow Cavalier Wool Holdings to own a wool scouring monopoly by buying all the wool scouring assets of New Zealand Wool Services International is unbelievable. “The reasons the commission puts forward for approving such a monopoly come nowhere near justifying its decision. WEL put undisputed arguments to the commission as to the negative impact of a monopoly to farmers. Therefore we are stunned to understand why they have reaffirmed that this monopoly is in the interests of the New Zealand economy and farmers. “The commission talks vaguely of lower production and administration costs and improvements to wool handling. “But once any sector is captured by a total monopoly, price reductions and quality are something the captive customer just doesn’t get to experience,” said Mr Heath.

For more information, contact: • Cliff Heath, Chairman, Wool Equities Ltd, Ph 06 322 9884 or 0274 474 336, tehekenga@farmside.co.nz. • Keith Cowan, General Manager, Wool Equities Ltd, Ph 03 347 9064 or 021 222 7081, keith.cowan@woolequities. co.nz.

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Bunnings 10 Tonne Spreader Vertical Rotars and Slurry Door 2.3 metre Muck Rake with Euro Hitch Available for Dry Hire or Full Service

MADE IN USA

Ideal for Pig or Chicken Manure, COMPOST, Greenwaste Calfshed and Dairyshed Cleanouts

22HP 42” / 27HP 48” USA MADE / LOW NZ PRICE FULL RANGE AVAILABLE

Ph 03 312 9440

0800 38 44 50


24

June 2011

Suzuki Farm Worker

LT-A500X

$15,545 AFTER CASH-BACK

$16,990

KingQuad 500 4x4 AUTO

• Liquid cooled, fuel-injected four stroke engine • CVT transmission with Hi/Lo ratio and reverse • Push button 2WD/4WD select with diff-lock option • Independent front & rear suspension • 24 month/15,000km warranty

incl GST

LT-A400F AUTO

$13,645 AFTER CASH-BACK

$18,990

KingQuad 400 4x4

• Hi/Low ratio selectable 2WD/4WD • Fuel-injected 4-stroke engine • Torque-sensing limited slip front differential • Sealed rear brakes • Twin shock rigid rear axle • 24 Month / 15,000km warranty

incl GST

LT-F300F

$9,995

AFTER CASH-BACK

$22,500

KingQuad 300 4x4 MANUAL

• 3-speed sub-transmission – 15 forward gears • Selectable 2WD/4WD • Front disc brakes • Front diff-lock in super-low ratio • Independent front & rear suspension • 24 month/15,000km warranty

incl GST

*While stocks last or until 31 July – conditions apply. Prices include GST.

Avon City Suzuki &QTPN 3PBE 4PDLCVSO $ISJTUDIVSDI t

www.avoncitysuzuki.co.nz

PARTS

SERVICE

USED TRACTORS Valtra T190 2700 Hours, 50 kph gearbox, Front axle suspension ........$97,000+GST Massey Ferguson 6290 7,600 hours, Dyna shift transmission, Fitted with MF 877 FEL ....................................................................$45,000+GST Massey Ferguson 6475 1500 hours, Dyna 6 transmission, Front axle and cab suspension, 50 KPH, Excellent condition ........$115,000+GST Fendt 930 3353 hours, Dual wheels, TMS, 50 KPH, Vario transmission. .........................................................................$155,000+GST

For all your genuine Massey Ferguson, Fendt, Lely and overum parts. PTO shafts, UJ’s and yokes, top links and pins etc. We also stock KCM chain a quality product at competitive pricing.

Fully equipped workshop and service vehicles to meet all your needs whether in our workshop or on site. Now is the time to book in your balers, mowers and other hay equipment for it’s winter service, book in early to avoid disappointment later in the year.

Please call in and see us at Christchurch or Ashburton.

Branch Manager: Terry Gordon Service Manager: Ryan Monk Sales Consultant Ashubrton: John Mehrtens Sales Consultant Christchurch: Nick Wilson Sales Consultant Christchurch: Karl Harvey

Massey Ferguson 5465 3287 hours, Speedshift transmission, Good tidy tractor. ..............................................................................$52,000+GST Same Silver 130 3937 hours, MK II electronic, Hydraulics, SBA 4WD and difflock, Mechanical F/R shuttle. ................................................$45,000+GST

USED BALERS Massey Ferguson 185 TBC, Tandem axle, Knotter blowers and Cutter 65,000 bales, Very tidy ...........................................................$85,000+GST

USED EQUIPMENT Lely SL 2500 Fert spreader, Good condition ...........................................$8,000+GST Sitrex 3mtr Tedder Rake .........................................................................$4,500+GST Webco CF700 Centre feed wagon, Tandem Axle ....................................$8,000+GST Scannell 2 bale trailing bale feeder ....................................................... $8,000+GST. Silage Grab 1.4 with Pearson quick hitch brackets ................................ $1,950+GST.

0272 607 820 0274 987 119 0272 607 821 0274 987 044 0272 607 840

24 hour service 03 344 5645 / 03 307 6031

JJ LTD Christchurch 36 Hickory Place Hornby Christchurch Ph 03 344 5645 24 Hours Fax 03 349 8241 www.jj.co.nz

JJ LTD Ashburton 9a McGregor Lane Ashburton Ph 03 307 6031 24 Hours Fax 03 307 6025 www.jj.co.nz


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