Rural News Issue 509 Feb 2012 by Rural News Group

plough partners

better biology

John and Lynda Guy, Hamilton, are both passionate about ploughing. page 38

About 45,000ha is being farmed on soil-first principles, a Far North field day hears. pages 26-27

Rural NEWS to all farmers, for all farmers

February 21, 2012: Issue 509

IT’S OFFICIAL: sheep and beef farming are in the black big-time, but lamb numbers will be fewer than forecast. Beef & Lamb NZ Economic Service’s mid-season update estimates $133,800 average profit for sheep and beef farms – up 17.6% on last year, the highest in 10 years. Director Rob Davison told Rural News that in 2007/08 some farms made only $10,000. “For five years we’ve had an awful

run of profits. In 2007/08 our farm profits had slumped and in some regions to negative. International prices were [then] soft and we had a strong exchange rate. This year the exchange rate is much the same but international prices have outstripped it.” The profit rise is massive in Taranaki/ Manawatu – 50% on last year. And a 42% increase is forecast for Marlborough and Canterbury. This points to a better season than 2010/11, a disaster in these regions. Other regions are expected to get modest rises.

Despite sliding schedules Davison says one positive message is that exports receipts are going to hold. “We’ve got a tweak up in volume going out and a tweak coming down as a result of a stronger exchange rate. Though prices are softening a bit, they’re still good compared with two years ago.” The report shows sheep numbers down by 4.3% to 31.15 million. Davison says this a bigger drop than they predicted, a drag on the number of lambs available this season for slaughter. “This

will be down 4.1% from earlier estimates to 19.7 million.” Lamb prices at the farmgate are estimated to be $115 per head, slightly down (2.2%) on last year’s record high of $117.64. Davison says he expects export prices to be good though the stronger NZ$ vs the euro and the pound could soften the price outlook. This year Davison expects a huge fall in mutton exports – down 30% or 31,000 tonnes on last year’s record kill. “We had an enormous sheep slaughter last year underpinned by high prices for mutton. This year we don’t see the sheep flock declining; it may increase slightly by June.” This is backed up by news of a 4.8% rise in hoggets being retained, indicating the national flock is rebuilding. While a decline in wool production reflects the drop in sheep numbers, this has been offset by good pasture conditions. Wool production is expected to be down by only 2.1% on last year. The report predicts beef exports will rise 4.5% and farmgate prices to remain similar to last year. But the strength of the NZ$ against the US$ carries a threat of lower prices.

You don’t have to be a techie to use modern dairy technology, Manawatu dairy farmer Laura Barr told Feds Dairy Council’s pre-meeting tour. More on page 6

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Growers leader Neil Trebilco takes the middle road ahead of crisis meeting.

page 12

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Sheep, beef profit up p e t e r bu r k e

kiwifruit meeting

Crafar crunch this week WEDNESDAY THIS week is looming as crunch day for the sale of the Crafar farms to the Chinese company Shangahi Pengxin. In the wake of last week’s High Court judgment, Landcorp chief executive Chris Kelly told Rural News the receiver KordaMentha had set this as the deadline after which “all bets are off.” Landcorp has signed an agreement that will see them effectively employed as sharemilkers for Pengxin and manage the 16 farms if the deal goes ahead. Kelly says he was “surprised” at Justice Miller’s judgment and says it now comes down to a call on whether Landcorp or any other New Zealand purchasers of the farms would be the better managers of the farms. Landcorp has been asked by Pengxin to provide extra information to the Overseas Investment Office (OIO) for use by them in making a further recommendation to the Government which will then decide. One group pleased with the decision is the Michael Fay-led consortium. A spokesman, Alan McDonald, says it had always been their position that the original decision wasn’t in the best interest of New Zealand and that it didn’t bring any economic benefits. “We’re to page 3

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Rural News // february 21, 2012

news 3 issue 509

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Tide turning on TAF? A ND REW SWALLOW

News �� 1-15 World �� 16 Agribusiness �� 18-19 Markets �� 20-21 Contacts �� 21 Hound, Edna �� 22 Opinion �� 22-25 Management �� 26-27 Animal Health �� 28-31 Machinery and Products �� 32-37 nz ploughing championships �� 38 Rural Trader �� 39

Head Office Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122

A GROWING number of Fonterra shareholders are questioning the wisdom of pursuing TAF (trading among farmers) despite the board’s continued insistence it’s necessary and Fonterra’s efforts to downplay shareholder concerns. Rural News understands management and board members faced intense questioning on the issue at many of the recent round of meetings – not just those in the South Island. “The tide, I can tell you, has changed,” says Lindsay Blake following her area’s meeting at Putaruru, Waikato – Fonterra chairman Henry van der Heyden’s home turf. That’s echoed by Bruce Hayes, Hikurangi, who attended the Whangerei meeting.

“There appeared to be a substantial mood change by many shareholders [compared to] previous meetings I’ve attended on TAF. There’s a simmering distrust of Fonterra, that we’re not being given the full story here. “The real concern now is how DIRA and TAF have been shackled together in the MAF [draft Regulatory Impact Statement] document on Fonterra’s Milk Price Setting, Capital Restructure and Share Statement (DRIS).” The Putaruru meeting, which the chairman attended, ran for three hours and was dominated by discussion on TAF’s objectives and its consequences in light of that document, says Blake. Some meetings were even more heated than Putaruru’s, she has heard. “I got a very angry call from a shareholder who went to the Te Awamutu

CFO’s take on TAF & meetings FONTERRA CHIEF financial officer Jonathan Mason says he attended seven of the TAF meetings. “The first thing that struck me was the great turnout and the high level of interest in the business,” he told Rural News last week. Total tally at the 50 venues was 3000 – a record turnout with “a lot of great discussion.” “Following the meetings I talked

to the directors, shareholders’ councillors and managers who went to the other meetings. I also reviewed all the feedback from our 35 area managers on each of the meetings. “As always every meeting was different and on other topics there was the usual wide range of views – as was the case with TAF (trading among farmers). to page 5

Postal Address PO Box 3855, Shortland Street, Auckland 1140 Published by: Rural News Group Printed by: PMP Print Contacts Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: fionas@ruralnews.co.nz ABC audited circulation 80,879 as at 31.12.2011

Lindsay Blake’s concern is protecting Fonterra for the next generation.

meeting. Apparently they were calling for the board to stand down there.” The problem with pursuing TAF now, as Blake sees it, is the role it plays in what appears to be a Government plan to wield greater control over Fonterra, as outlined in MAF’s DRIS document, and the likelihood it will pave the way to a share listing. She says she sympathises with van der Heyden in that TAF was developed in a less hostile regulatory environment but is alarmed at his persistence to see it through now. “There’s a distrust of Fonterra in that MAF document that wasn’t evident two years ago yet he’s so focused on getting this through and hitting those deadlines before he retires [from the board in November].” As a chartered accountant taking a

career break to raise a family with her husband Grant on a farm, Blake says she got to grips with the implications of TAF herself and only recently got in touch with Leonie Guiney, a South Canterbury shareholder who has spoken publicly about concerns about TAF. “I felt we needed to stop this parochial barrier and have an open conversation between the different areas. As soon as you start to scratch the surface of this you realise you’re not a lone voice. Everybody has the same fear... we’re having the wool pulled over our eyes. “I love Fonterra and its ethos of ‘allfor-one and one-for-all’ which has benefitted our fathers and forefathers. “What I cannot stomach is selling out my children’s generation’s right to that.”

Crafar deal coming to the crunch from page 1

pleased Justice Miller has come to a similar conclusion.” McDonald says paragraph 57 in Justice Miller’s judgment was the one at the heart of the matter for them. It states the error made by the OIO in its decision was not a mere technicality. McDonald says the decisions went on to say “no one suggested the farms are likely to remain in their present unsatis-

factory state. Any solvent purchaser can be expected to bring their production up to its potential. That being so, the economic benefits caused by the overseas investment were materially overstated in the OIO’s recommendation.” McDonald says the purchase group and its legal team are now considering their next moves but agrees a lot will depend on what the OIO comes up with and the ministers’ decision.

Meanwhile Pengxin describes Justice Miller’s decisions as a “surprising hiccup.” Spokesman Cedric Allen says Pengxin has no intention of walking away from the deal. “We have withstood a nine-month investigation by the OIO and had our proposed purchase endorsed by two cabinet ministers. It would seem this is shifting the goalposts almost at the end of the journey.” Allen says they are still confident

MS1311

the deal will go ahead. “Never has there been a sale of land so thorough and long, taking place in such a glare of publicity as this land. In the last few years New Zealand has sold hundreds of thousand of hectares without a murmur from anyone. “The Chinese own almost nothing in New Zealand and yet this tiny purchase has somehow escalated into a major news story. It’s quite puzzling.”

Rural News // February 21, 2012

4 news

Prime land under threat The Foundation of Arable Research held its triennial North Island conference in Hamilton last week. Here and opposite Sudesh Kissun relays some of the key messages. PRIME ARABLE farming land is shrinking under pressure from urban sprawl and ETS, says Federated Farmers president Bruce Wills. Farmers are increasing yields by better methods but the overall area dedicated to grains, sheep and beef farming continues to shrink. Wills last week told the Foundation for Arable Research conference at

Hamilton that 873,000ha has been converted to lifestyle blocks. “That loss of our best farmland represents half of all the land in dairy production, 873 [times the area of] James Cameron’s land buy or just under two complete Aucklands. “While Federated Farmers wouldn’t be happy about limiting the rights of anyone to buy or

sell the land they legally own, it raises important questions about how dense our cities and towns ought to be.” Wills points out the number of lifestyle blocks (175,000) is three times the number of agribusinesses and six times the pastoral farming businesses. “I can’t help wondering if subdivision has played a

Ready to make changes CROPPING FARMERS should be ready for changes to their farming systems, says Foundation for Arable Research (FAR) chief executive Nick Pyke. Speaking on how a New Zealand cropping farm may look in 20 years, Pyke predicts the sector will be producing seeds for a growing world population. Most of the crops grown here may go directly to feed people, he says. “These crops may be new crops, new selections of existing crops or GE on increased composition of particular

attributes for feed or food. Potentially crops will be grown using production techniques that enhance the composition with particular attributes.” Pyke also predicts more use of precision tools in farming. He says cropping over the last 20 years has changed the way farms look and operate. The next 20 years will only see increases in the change of pace. “Cropping has not been the most profitable farming business. The opportunity is ours to change that.”

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role in driving up the cost of rural land. Instead of politicians conjuring up images of rich foreigners squeezing out young farmers, it may all come down to New Zealand building outwards than upwards. It is this that arguably poses the single biggest threat to sustainability of New Zealand agriculture.... the loss of our best classone land.” ETS has attracted an application to the OIO to buy Taranaki sheep and beef farms for conversion to carbon forestry. Retail prices of milk, meat and bread may hog headlines but the ETS causes hard-working mums, dads, businesses and farmers to pay more for fuel, electricity and –

FAR conference delegates discuss the latest developments in maize.

from this year – industrial gases, Wills points out. “The ETS financially rewards domestic and foreign carbon foresters in a ‘cash for Kyoto-compliant trees’ arrangement. The risk is we’re losing productive carbon farmland instead of marginal coun-

try to its financial incentives.” Converting to trees also impacts communities, he says. “Each farm is a home and instead of farmers buying what they need locally and their children going to local schools,

that’s exchanged for occasional maintenance by a forestry gang.” Wills says subdivision of best quality farmland near urban areas, with incentives to plant trees on hill country, is putting the squeeze on our pastoral farm system.

Get in GIAs, Carter tells conference PRIMARY INDUSTRIES Minister David Carter is urging arable farmers to get involved in Government Industry Agreements on biosecurity. He says the Government is making good progress with its work on GIAs – Government and industry cooperating to prepare for and respond to any biosecurity risk, he told the FAR North Island Conference. “I encourage the arable sector to

get involved,” Carter said. “The GIAs present an opportunity for industries to have a say in how we prepare for and respond to unwanted pests and diseases that directly impact their business.” One tool launched last year to support New Zealand’s disease readiness and response programmes is the FarmsOnLine database. This holds property location, ownership and land use information so the

Government can rapidly respond to a biosecurity emergency or natural disaster. Carter says having this type of information and being able to contact farmers quickly in these situations helps protect crops, stock and livelihoods, and the New Zealand economy. “It also gives our trading partners confidence in our ability to respond to disease outbreaks.”

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Rural News // february 21, 2012

news 5

Cropping sector mulls campaign NEW ZEALAND grain growers want week, Go Grains chief executive Robyn to replicate an Australian campaign to Murray was a guest speaker. Pyke says FAR is keen to work with arrest a declining trend in wholegrain Go Grains as their research and scifood consumption. Foundation for Arable Research ence work is applicable here. “There is chief executive Nick Pyke says a cam- no point in reinventing the wheel,” he told Rural News. paign could be launched as FAR is already working early as June provided fundto double bread consumping and stakeholder support tion, Pyke says. Only 1:4 are secured. He hopes this New Zealanders eats bread. would lead to more New ZeaFederated Farmers presland-grown grains in cereident Bruce Wills says conals, instead of the Australian sumers must want New grains now used. Robyn Murray Zealand-grown grains in FAR is talking to Go Grains, Australia’s independent voice their cereals, prompting the Feds to on grains and legumes in health and “fight their corner and educate consumnutrition. It reviews the science and ers that not all grains are created equal.” “Nor does ‘Buy New Zealand Made’ communicates research findings on nutrition and health benefits of grains, mean your cereal is made of New Zeagrain-based foods and legumes. At land-sourced wheat. For some cereal the FAR North Island Conference last manufacturers, ‘Assembled in NZ’

GO GRAINS’ TOP 3 TIPS • Aim to eat more nutritious core-grain foods such as breads, pasta, rice, and breakfast cereals, particularly those containing whole grains and fibre. • Limit intake of less nutritious non-core grain foods such as mixed meals and takeaway foods, cakes, pastries and biscuits. • Aim to eat at least four serves of grain-based foods daily; at least two serves should be from wholegrain cereals (wholemeal and mixed grain breads, whole grain breakfast cereals, rolled oats, wholegrain crispbreads and brown rice) but two serves can be from core refined cereal foods (white bread, white rice, white pasta and noodles and breakfast cereals).

would seem more apt,” says Wills. Murray told the FAR conference whole grain consumption is declining in Australia and New Zealand. An Australian study last year found consumption of grain foods by adults and children dropped by almost one serve

– 3.2 serves a day in 2011 down from 4.1 serves in 2009. And it found that consumers – particularly females aged 15-24 – believe eating grain-based foods may contribute to weight gain and threaten health and wellbeing.

Murray says only 23% of Australians eat legumes. Most either don’t understand the health benefits or don’t know how to cook them. Some worry about side effects. Go Grains aims to bring dietary guidelines ‘to life’ and its work can be easily transferred to New Zealand, she says. “We need to reduce confusion over the nutritious, refined-core grain foods such as white rice, white bread, white pasta and breakfast cereals [as opposed to] less nutritious refined noncore grain foods such cakes, biscuits and pastries, to help consumers make better choices to achieve a balanced diet.” Murray says higher wholegrain consumption will drive demand and boost farmgate returns. Many scientific studies conclude wholegrain, high-fibre foods help prevent chronic diseases.

CFO’s take on TAF & meetings from page 3

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“From all the feedback I’ve had, it’s clear farmers still have a lot of questions and we’ve got to make sure we’re there to provide the answers and listen to any of the issues being raised. “We’re going to keep talking to them and keep it in the family. At the same time an overwhelming majority of farmers made it clear they were keen for us to get on with it, get our capital structure sorted, so we can move forward with confidence. “For me the big question that came up often was, why do we still need TAF – especially when our balance sheet is in such good shape? “The harsh reality is if we did not do TAF we would have to set aside [about] $1 billion to protect our balance sheet because of redemption risk. Even though we’re in good times right now, at any point a number of events could converge on us – drought, global financial crisis – and we would see money washing in and out of the balance sheet again. “That means we need a lot of capital set aside to protect the co-op against this risk. That same billion dollars could be put to work executing our global business strategy to grow farmer shareholder wealth.... “So overall the message is get on and we are working towards a launch in November.”

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Rural News // February 21, 2012

6 news

DIRA misinformation a worry p e t e r bu r k e

AGRICULTURE MINISTER David Carter has accused Fonterra and the Fonterra Shareholders Council of initially spreading misinformation about

the new DIRA regulations. “I don’t think the Shareholders Council got it right and I don’t think the initial response from Fonterra correctly interpreted what we were intending to do,” he told

Rural News last week prior to addressing Federated Farmers Dairy Section Council meeting in Palmerston North. This is worrying, he says. It needs to go ahead without misinformation.

“I’m moving to make sure farmers are more correctly informed.” Carter says he is attending meetings such as the Federated Farmers Dairy Council event to ensure farmers under-

Innovation focus for pre-council tour ink couldn’t resist a swipe at the area’s local authorities. “Welcome to the most regulated region in the country,” he chortled, amusing many local dairy farmers still battling Horizons Regional Council over its contentious One Plan. There was no response from the HRC chairman who was on the bus. First stop was Stephen Barr’s farm near Feilding, regarded as one of the most highly automated in the district.

INNOVATION AND technology were top of the agenda for delegates to Federated Farmers Dairy council meeting last week in Palmerston North. Andrew Hoggard, a local dairy farmer and a vice-president of the dairy section, organised a pre-council meeting tour of some innovative developments in Manawatu. But when the bus picked up delegates from the airport to begin the tour, Feds board member Willy Lefer-

The shed bristles with aerials that automatically record data from the farm and direct it to a computer. The farm runs 800 cows and the shed visitors saw has the latest ADF technology among other things. Stephen Barr told the visitors he likes technology and to see things happen and this saves him time. “I spend about 15 minutes daily at the computer rather than going around the farm all day.”

stand what the Government is trying to do. At least 100 emails have been sent to people raising concerns about the new proposals. “When I’ve [talked to] some dairy farmers and explained what we are proposing to do, they acknowledge this is completely different from their original interpretation of what was proposed.” Fonterra’s claim that

under the new legislation it will have to supply the independent companies with 200 million L extra milk annually are refuted. No company can take more than 50 million L. “So I challenge Fonterra and any dairy farmer to tell me where are the additional four plants being built today that can each take 50 million litres – [able to] take this milk from July 1 onwards. I

don’t believe they exist.” Carter says the 200page document setting out the proposals is complex but largely delivers the ‘tone’ of the 1500 submissions MAF received last September on the raw milk regulations. “What the majority of those submissions asked for was that we find a way to end the requirement for Fonterra to have to supply these large competitors.”

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Farmers were upbeat last week at the Southern Field Days, Waimumu, near Gore. The organisers were hoping to beat the previous attendance record as Rural News went to press. “There’s a fabulous mood, everyone is in high spirits,” event publicist Justine Williams said. Many among the record 640 exhibitors were reporting strong inquiries and tipping the field days as the start of a better year. The first-day crowd (9500) was a record, and the second day crowd was 11,000, also a record. Williams said farmers appeared to be shrugging off any concerns about the pre-Christmas dought’s effects on profitability.

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Tow and Fert slurry fertiliser applicator ticks all boxes Designed with simplicity in mind The Tow and Fert was designed for tool-less maintenance and cleaning. Every fitting can be removed in the paddock using the robust ‘cam-lock’ hardware. This means, for whatever reason, you need to clear a blockage - you can do it down the back paddock of your farm. Nozzles that offer different application rates can be switched on-the-fly giving you full flexibility of your requirements.

The Tow and Fert is “NOT just-another-sprayer”, George Freeman of Metalform emphasises. It provides every farmer the freedom and independence they need when it comes to managing their fertiliser and animal health programme effectively. With the ability to mix and apply nearly every type of fine particle fertilisers, liquid fertilisers, bio fertilisers, humates, animal health products and weed control products - the Tow and Fert is no toy! Metalform of Dannevirke, New Zealand have been developing fertiliser application products for over 30 years from fine particle slurry applicators for helicopters to particle grinders for ground spread trucks. The newest addition after 4 years of R&D, is the versatile Tow and Fert Multi 800. Don’t be fooled by the size of the Multi 800. To put it in perspective, one load can cover up to 10 hectares with a typical 50 kg/ha of Urea - in just over half an hour. Everything about the Tow and Fert is simple - from planning and executing your desired mixture through to cleaning and maintaining the machine with no tools. It is designed so that any employee can quickly learn how to operate and utilise all the features of the Tow and Fert without any hassle. The most important thing about the Tow and Fert is the cost benefits you can achieve in your fertiliser programme, by being able to manage the exact amount of product going on your pastures and applying it when you want rather than waiting for contractors to do large areas.

Free up your tractor and use a 4WD ute! The Tow and Fert being used to apply Fine Lime. Cost benefits are immediate With great results emerging, the Tow and Fert customers are reporting paybacks on their Tow and Fert of fewer than 12 months. When this is coupled with Metalform’s easy financing option, owning the Tow and Fert and removing the cost of a 3rd party to apply fertiliser and saving on actual fertiliser amounts - can often make this a cash flow positive purchase making the decision a real no-brainer. The Tow and Fert’s multi role ability means you will be saving money in fertiliser, application costs, timely application of animal health trace elements, application of herbicides (thistle, dock spray etc) while simultaneously applying lime, urea etc.

Coupled with the specifically designed software package by Metalform, the Tow and Fert is so easy to use. The software programme lets you choose the product combination you wish to apply, rate per hectare and estimated speed of travel and the program will give you exactly the amount of product and water required. This eliminates all guess work of your mixtures.

Loading the Tow and Fert from a silo is easy!

Notice how every plant has guaranteed droplet cover across the entire 18 metre swath. The ability to quickly and easily apply zinc to treat a facial eczema out-break, gives an obvious cost saving in vet costs and lost production. Zinc is one of the many animal health products that can be applied with the Tow and Fert.

Handling urea is easy with a loading bin - 500kg is easily mixed into the Tow and Fert patented pre-mixer A versatile machine Imagine being able to apply all products related to nitrogen (urea and gibberellic products), animal health products (mag oxide, fine lime, selenium, copper, iodine and zinc), fine particle fertiliser (including phosphorus, potassium and sulphur), liquid fertilisers (seaweed and fish based products) and soil conditioning products (humates) all whenever you want to and the amount you need to. The Tow and Fert has made this possible. Now, if you need to do a light cover of mag-oxide before you bring the cows into the paddock - you can! If you require a small dose of weed spray mixed with nitrogen after the cows have been in the paddock - you can! Not only can it mix and apply products for your pasture, the potential uses are endless. “I use it for mixing up my whole milk powder to feed the calves” says Mark Warren of Oamaru who milks 1500 cows. With the ability to self fill out of a creek, David Miller of Pokeno who milks 650 cows was happy to tell us, “During this dry season up in the north, I’ve been spraying out water onto my row of trees along my drive and pumping water into my supply tank thanks to the Tow and Fert” .

After analysing your soil and herbage tests, you may find that different paddocks require different nutrients. With the Tow and Fert, it is easy to blend a custom mix for each area and change it at different times of the year - try doing this with your bulk spreader.

In summary The Tow and Fert offers flexibility in your busy schedule to apply products you know and want, in a timely and effective manner. Don’t wait until you have 60 hectares to spray and call in a Helicopter - get the Tow and Fert so you can mix and apply any product at any time. Like being in control? If you like the concept behind slurry, dissolved or bio fertilisers but want to know how many kg/ha of nutrient you are getting on your pastures and want to guarantee timely applications then call Metalform on 06 374 7043 or freephone 0508 747 040 to organise a no-obligation demonstration of the Tow and Fert. Then you can make your own mind up! Visit www.towandfarm.com to find out more or watch the video.

Apply liquid suspended Magnesium oxide with the Tow and Fert with an even 18 metre cover

Rural News // february 21, 2012

news 9

OAD best way to keep NZ’s edge ONCE-A-DAY (OAD) milking is the only way New Zealand will retain its competitive advantage, Small Herds Association field day participants were told last week at Hikurangi, Northland. The key speaker, Massey University Emeritus Professor Colin Holmes, says the current focus on production over profitability in New Zealand is hurting dairy farmers and the industry in general. “New Zealand has been able to do well in farming because of the country’s low-cost pastoral system…. Now we’re talking about high-cost, highsupplement, high-input systems; we’ve lost our competitive advantage.” Holmes says the best way to return to a competitive, profitable system is to change the focus from production to profitability and from kgMS/cow to kgMS/ha. His experience on farms in Wairarapa suggests OAD achieves that, he says. In the first year farmers tried OAD, production dropped 5% but onfarm costs dropped 26%, increasing profitability in the first year by 15%. But the national average production loss due to switching to OAD is reportedly 18-25%, making farmers reluctant to change.

Holmes compares the current debate over OAD versus twice-a-day to the movement away from stripping and stimulation for cows between 1958 and 1964, when farmers stopped massaging cows udders before cups went on and manually emptying out teats after the cups had finished. “Even though the research revealed farmers got 18-30% more milk from stripping and stimulating, they stopped,” Holmes says. The genetics of the national herd changed so that the remaining farmers who did strip were gaining only 5% production in the late 1960’s compared to 18-30% when the change started. This change is now being seen in OAD farmers equalling or sur-

passing the production they once got when they milked twice daily. “Farmers are starting to breed OAD cows for the OAD system.” With these developments it is now possible to eliminate costs, keep production high and use workers and equipment more efficiently. Holmes reckons it should be possible for each person to milk 180 cows by 2030 if OAD is adopted, compared to 140 now. “If New Zealand farmers continue down the same path of high inputs with confinement feeding we will be using exactly the same system as competitors…. I believe once a day can become the major milking system used on pasture grazing systems.”

in brief Call for research on bio systems SCIENTISTS NEED to be open-minded and do applied research with farmer observations on biological farming practices, a Taupo Lakes and Waterways Action Group seminar has heard. Science leader at the New Zealand Biological Farming Systems Research Centre in Rotorua, Guna Magesan, says farmers are “good observers”, and the observations of farmers using biological farming practices need to be taken seriously. The first national conference on biological farming systems, in October at Rotorua, was a turning point, he says. “It brought real-life experiences of commercially managed farms to ‘conventional’ farmers, consultants and scientists.”

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Massey emeritus Prof Colin Holmes speaking at the Small Herds Association field day.

Rural News // February 21, 2012

10 news

RD1 adds 65th store FONTERRA SUBSIDIARY RD1 has bought Ruawai Farm Supplies, in the town on the Kaipara Harbour, Northland, bringing its retail store total to 65. The business is the only such store in the town and in the heart of a dairy area. “They won’t be shutting it down,” joint vendor

Trevor Harris told Rural News. “The first lease on the business is six years and they’ve a six year renewal option after that so I’d say they’re here to stay. “The turnover’s about $3m and there a lot of RD1 people in the area.” RD1 general manager Nick Berry says there are

73 Fonterra suppliers in the area. “So the acquisition supports RD1’s current strategy to have services available to all Fonterra farmers.” The next nearest RD1 stores are 28km north at Dargaville or 34km east at Maungaturoto. “RD1 will be employing the existing Ruawai Farm

Supplies staff to ensure they are given the opportunity to stay in the community and their chosen field,” adds Berry. Harris, who is retiring, says he cannot disclose the sale price because of a confidentiality agreement. “It’s probably about half what we’d have got four years ago but it’s still

RD1 will have 53 North Island stores and 12 South Island as of March 1.

enough for us to get out smiling.”

Ruawai Farm Supplies ceases trading February 28

and will re-open as RD1 on March 1.

Review of ag training ALL AGRICULTURAL training qualifications are about to be reviewed, the plans for how that’s to be done due late February. The make-up of six working parties to do the reviews were finalised last month and by May 31 each group must have reviewed its assigned qualifications and reported its recommended changes, cuts and new courses. Full implementation of the recommendations is set for May 31, 2014. About 170 certificate and diploma courses are now offered in the farming sector, about half supervised by AgITO. The rest are offered by private providers, polytechnics and industry offshoots.

in brief Young agricultural leaders sought THE SIR Peter Blake Trust is seeking nominations from agriculture for its Emerging Leader Awards. Anyone can nominate an emerging Kiwi leader – someone aged 25-45, already inspired and achieving in many walks of life, sometimes in relative obscurity. Deadline for nominations is March 30 and six awards will be announced as part of the Trust’s annual Leadership Week, June 22 – 29 June. See www.sirpeterblaketrust.org or phone 09 307 8875.

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Rural News // February 21, 2012

12 news

Grower calls meeting over Zespri grievances pa m ti pa

ANGER AT Zespri marketing mistakes and Government responses to the Psa-V crisis reached boiling point last week with a grower-organised meet-

ing at the Te Puke hall on Friday. Up to 500 were expected to cram the hall where organiser and grower Rob Thode planned to call for investigations into the biosecu-

rity failure of Psa-V and into Zespri. While the president of NZ Kiwifruit Growers has defended Zespri, Thode wants an inquiry into what he believes is a “failure to deliver fair returns

to growers, failures in the Korean and Chinese markets and failure to properly manage its licensed varieties.” As for the Government’s Psa response, Thode says it may cost him

“What the Government has done must send shivers through everyone else involved in agriculture in New Zealand. If it had been foot-and-mouth disease and MAF had done testing for a little while and then dumped it on the industry, how that would have gone down?”

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about $3m. He was asking growers to back demands that Government admit its responsibility for letting Psa-V into New Zealand, that it compensate growers and declare an adverse event. The Government knew about Psa but failed to “secure our borders”, he maintains. “What the Government has done must send shivers through everyone else involved in agriculture in New Zealand. If it had been foot-and-mouth disease and MAF had done testing for a little while and then dumped it on the industry, how that would have gone down? We would have ended up with a decimated rural sector.”

Meanwhile Thode says Zespri is in an “absolute mess”. He points to the company being fined $500,000 last year in Korea for anti-competitive practices and its Chinese agent being arrested on charges of multi-million dollar tax evasion. “Two of our key markets are in total disarray. Why isn’t anything being done? Why are the people still in place who created that mess? Who got the anti-competitive practices? Who appointed a dodgy importer? Why hasn’t something happened to them? “We’ve also got people running around grafting licensed varieties to page 13

Zespri hears concerns but defends record ANY PROPOSED change to the structure of the kiwifruit industry would have to get the nod from New Zealand’s 2700 kiwifruit growers, says Zespri. But, as a grower-established and owned company, it will be listening to any grower concerns to come out of Friday’s meeting, a spokesman told Rural News. “Ultimately Zespri exists because the vast majority of growers want the current industry structure. Any proposed changes to the structure would have to convince New Zealand’s 2700 kiwifruit growers that it is in their best interests to make changes.” Regarding Thode’s concerns (see main story) about the 2011 performance in Korea and China, Zespri says early estimates predict at least a 35% sales increase in China and returns at record levels in the 2011/12 year. In Korea sales volumes were equal to previous record sales. Strong pricing in that market means early estimates predict sales in Korea 20% up on the 2010 season.

Rural News // february 21, 2012

news 13

Frustrations understandable MAF UNDERSTANDS kiwifruit growers’ frustration over how Psa may have arrived here and fears for what the future holds for the industry, says its deputy director-general compliance and response, Andrew Coleman. He says the entry route for Psa to New Zealand remains unclear and it is unlikely this will be known in the near future. Last year MAF reviewed all that was known about possible entry pathways and is now reviewing

in detail other research done since its report was completed. MAF has also initiated an independent review of import rules for kiwifruit plant material. The terms of reference and the appointment of the reviewer are being finalised and will likely be announced in the next few weeks. The review findings will be made public. Since the detection of Psa in New Zealand, significant collaboration has

Zespri grievances

taken place between MAF and the kiwifruit industry, including the Government contribution of $25 million to assist with disease management. Biosecurity is not just about the New Zealand border or one single agency, Coleman says. “It is a team effort whereby everyone (MAF, primary industries and the public) has a role to play in protecting New Zealand and managing risks they are best placed to deal with.”

Psa work earns scientist accolade MASSEY UNIVERSITY has awarded Paul Rainey (pictured), professor of evolutionary genetics at the New Zealand Institute for Advanced Study and the Institute of Natural Sciences, Albany, its highest recognition, the title Distin-

guished Professor. Rainey’s wide range of projects includes work on Psa (Pseudomonas syringae pv. actinidae) as part of an international team of scientists working with Zespri and Plant and Food Research to sequence disease genome in

a bid to identify and understand its strains and impact on plant resistance. Distinguished professors must have achieved positions of eminence internationally in their field; there can be no more than 10 at any time.

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from page 12 by growers who elected its directors. illegally.” “It is a difficult time Thode says Zespri for growers, there’s a lot has nothing to hold it of emotional angst out to account and growers there and growers have can’t go anywhere else. to sort through a myriad “Personally I am a issues, not easy strong supporter when you are of Zespri long under pressure.” term; I hope to Trebilco says always sell my NZ Kiwifruit fruit to them Growers and because they are Kiwifruit Vine New Zealand. Neil Treblico Health are workBut when you ing with the Govhave such a massive failure by a company ernment toward some adverse-event type proalso producing incredvisions for the kiwifruit ibly low returns for its growers, there’s got to be industry. A recommendation questions raised.” on the draft release of G3 NZ Kiwifruit Growas a gold variety replaceers Inc president Neil ment for the Psa-V devTrebilco says growers astated Hort 16A will go are going through a lot of “emotional angst” but to the Zespri board today (February 22); growers should talk to Zespri if will be consulted in the they have issues with its performance. Zespri was first two weeks of March and a final decision will not an “anonymous corbe made on March 21. porate” but was owned

Trebilco notes Zespri has increased sales in the last year by about 35% in China and about 20% in Korea. In Korea New Zealand is paying a 45% tariff on its fruit while Chile pays 13% which is reducing year by year. “So we are under a severe cost price disadvantage because of that. In that situation we would expect Zespri to compete hard but we do expect Zespri to stay within the rules. “ Trebilco says a Zespri scheme to release new varieties which began prior to Psa has been slowed because new releases now must be tested for Psa tolerance. The scheme aimed to get some growers of the green cultivar Hayward into other varieties and, with less Hayward produced, thereby boost its returns.

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Rural News // February 21, 2012

14 news

Compulsory log levy proposal from NZFOA PETER BURKE

FOREST AND woodlot owners could face a compulsory levy when they harvest and sell timber. The New Zealand Forest Owners Association last week concluded nine nationwide meetings to gauge support for the idea which, if it gains a mandate, would be implemented under the Com-

modities Levy Act (CLA). Currently NZFOA is a voluntary membership organisation and there is a view among many members that non-members reap the benefits of the association’s work, without making a contribution. Glen Mackie, senior policy analyst at NZFOA, told Rural News the meetings were a fact-finding mission. There’s no final

proposal yet; this will follow when the views from the meetings are analysed. “The first step we have to take [under the CLA] must be to identify who’s actually going to pay the levy and we have to make sure those people have the opportunity to give their views on whether they want to pay it. “Also, if the levy is suc-

cessful, they have to have the ability to have a say on how the levy is spent.” The meetings are also about assessing the state of the industry, says Mackie. One challenge for the NZFOA is that everything, including membership, is voluntary. “There are voluntary contributions by individual companies to industry-

The proposed levy would apply to ‘planted production forests’ and fall due when logged.

good projects including fire, harvesting and biosoecurity research [but] at the moment it’s all vol-

untary on an ad hoc basis. Those companies that feel they benefit directly will fund a project but others don’t and are under no obligation to do so. “We find the vast majority of these projects benefit the majority of forest owners so the idea of the levy is an opportunity to widen the funding base.” The proposed levy would apply to planted production forests, not harvested native timber, when trees are taken, be that for woodchips, posts or logs. “It would apply only at harvest. Nothing would be paid until then, when

the forest owner has cashflow.” Each year about 26 million m3 of timber is harvested in New Zealand so cash would be available from the day a levy was introduced. The amount of the levy isn’t yet known because it would depend on what levy payers wanted to fund, and what they were prepared to pay. Mackie doesn’t believe it would be large. If there is support for a compulsory commodity levy, a final proposal will be drafted and all those who would be liable to pay would have a final say in a referendum late this year or early next.

Farm Foresters positive so far

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FARM FORESTERS are reasonably positive about a proposal for a compulsory commodity levy on logs harvested, says Farm Forestry Association president John Dermer. The association’s 27 branches have about 2000 members with woodlots and forests from 2-1000ha. Grower numbers are estimated at 13,000. Dermer is one of a small committee that fine tuned a forest owners’ presentation on the levy proposal. Details of how the levy would work were addressed at a meeting in Wellington. “I didn’t hear anyone say [the levy idea] was a waste of time. They realise the industry has been chronically short of money for a long time and needs to be funded in an equitable way. That’s important because a lot of freeloaders in the industry are not paying their way.” It’s evident the Government is reducing spending in all areas and that industry cannot rely on its support, certainly not in the short-term, Dermer says. “This especially applies to R&D without which any industry declines. So the levy will help to make up the shortfall for organisations such as Scion who are doing a tremendous amount of work in practical forestry initiatives such as harvesting logs on steep slopes.” Dermer says a large part of the proposed levy would be earmarked for forest health research which everyone – not just the big guys – should be helping to fund. With a levy, small forest owners would have more say in the industry, and the proposal’s principle that ‘if you pay, you have say,” is good, he believes. Though Dermer is a New Zealand Forest Owners’ Association executive council member, he does not have voting rights.

Rural News // february 21, 2012

news 15

Cook Strait cable holds up scheme V I V IE N NE H A L DA NE

SOUTH ISLAND irrigation scheme developments are being held up by the size of the Cook Strait high voltage direct cable (HVDC), says TrustPower. TrustPower has four fully consented projects planned in the South Island: Kaiwera Downs, Arnold River, Mahinerangi and Wairau. While Wairau is the only one with irrigation attached (Arnold is on the West Coast, and the other two are wind schemes) TrustPower community relations manager Graeme Purches says all are impacted by the HVDC charging regime which dictates South Island generators pay the operational costs of the HVDC, despite it serving North Island consumers. “This debate has been going on for years,” Purches told Rural News. “The Electricity Authority had a working group looking at it and the majority recommendation was these charges should not apply to new projects and be phased out for existing generation over a 10 year period. But there were dissenting voices in the working group and the EA has now decided to do more homework on it.” It means another year of uncertainty about whether HVDC charges will apply, and delays in the Wairau Valley. “In that environment, we are not going to be building anything in the South Island anytime soon. Having spent millions of dollars getting resource consents for projects and have them just sitting there is frustrating.”

Steve MacKenzie, a farmer and agricultural contractor with a 63ha block near Blenheim, is chairman of Wairau Valley Water Enhancement, the irrigation company set up in 2001 to explore the options. He hopes Trustpower can “sort out the commercial issues shortly” so the power and irrigation scheme build can start. “The community won’t go ahead with an irrigation scheme while this is hanging in the air. They’ve given us instructions to wait for TrustPower but it’s taken longer than we envisaged. Once this scheme is up and running it will be a tremendous asset to the district.” Purches says it’s unfortunate progress can’t be made “because right now, there’s never been a better time. I predict a repeat of 2001 in about five years: there will be a dry year in the South Island, an electricity crisis in which prices go through the roof, the hydro lakes will be low and people will say, ‘how did we get to this point again?’ “ There has been some opposition to the projects, in the Wairau Valley in particular, where some landowners opposed it over environmental and safety concerns. But the majority of residents are positive about the benefits of increased irrigation in the area, says Purches. “A couple of farms said they would never sell, but out of 66 properties, more than 50% have signed up. There’s a group who said, ‘once you’ve got your resource consents come and talk to us’ and we’ve been doing that.

“There’s a number for sale, and at least one of the four problematic ones I know of where the landowner is saying ‘over my dead body,’ is saying behind the scenes ‘this is what it’s worth’.” In fairness to landowners who have signed reasonable deals, he says there’s “no way” Trust-

Power will pay several times the valuation of other properties. “One of those properties we can do without and a couple we can by-pass, but it will cost us money. If the worst comes to the worst, there’s acquiring authority but we’ve consistently said it won’t come to that.

Despite having cleared consents and appeals, TrustPower’s Wairau Valley hydro and irrigation scheme is still on hold.

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in brief NEW ZEALAND Pork chief executive Sam McIvor is, after six years with the industry body, leaving in March to join meat company Prestons. NZPork says it is well advanced in finding McIvor’s replacement. “Championing the industry’s strong environmental standing, progressing the animal welfare changes and maintaining the industry’s diseasefree status have been significant pieces of work [by Sam] who has shown strong leadership and the ability to work effectively with farmers through to politicians in this process,” says NZ Pork board chairman Ian Carter.

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Rural News // February 21, 2012

16 world

Call for global investment on farm a l an h a r m an

LACK OF agricultural investment in farming has created a vulnerable food market, says Rabobank. In 1970, global funding of agricultural research, public and private, was estimated at US$40 billion a year; today it’s still US$40 billion but world population has doubled and in the last 20 years demand for food has risen 15 times faster than the available arable land. Retail food prices are a third lower than when our grandparents were alive even though agricultural commodity prices have reached record levels. In a paper presented at an economics conference in Geneva the bank says despite the need to feed a growing global

population, farmers are not growing significantly more food to meet that need because of an increasing double market failure. This failure – price pressure on both ends of the value chain – leaves farmers trapped. On the one side, farmers face competition from other farmers, often in other countries, based on lowest price. On the other side, large global food companies are demanding lower prices for farm produce and major industrial firms are demanding higher prices for inputs and agricultural supplies. The bank says agri-commodity traders, food processors and retailers must take the lead in collaborating with farmers. It says while farmers need to increase their productivity, increasing

the agricultural supply takes time and money. “A big part of the solution to the food supply issue lies in our perspective at farm level, as farmers have the opportunity to close the productivity gap,” Rabobank board member Berry Marttin says. “Farmers feed the world. To close

this gap, innovation and investment by farmers is crucial.” Marttin says farmers are changing into rural entrepreneurs. “Farming will become more high tech and more specialized, and farm size will increase further. But to create an enabling environment in which farmers can prosper, cooperation between private sector and public sector with farmers is needed.” Rabobank food and agri coverage global head Gilles Boumeester says the next decade will be dominated by a battle for raw materials. “As larger players try to carve out their own piece of the raw material pie, the commodities market will break up into separate ‘controlled supply chains’.

This has placed private enterprise in the driving seat when it comes to solving the dilemma of how to create stability in the vulnerable food supply chain.” Rabobank says it has identified four ways of collaboration between multinationals and farmers: • Support input: trigger long-term investments in structural access. • Education: provide tailored support in innovation or training. • Access: make crop/produce more accessible by improving logistics and finance, urge governments to remove trade barriers and stimulate free trade. • Demand: stabilise demand by investing directly in sustainable farmers whose supply chains are transparent and whose products are traceable.

Australia ships A$1.1 billion of lamb THE VALUE of Australian lamb exports rose 12% last year to top A$1 billion for the first time. Meat and Livestock Australia says while the total volume of lamb exported in 2011 rose only 3%, the historically high prices all year were partially passed through to export markets. The US remained by far the most valuable market for Australian lamb, value growing 19%, despite shipments up just 1%, to A$350 million. The value of Middle East shipments were steady at A$216 million, even though volume fell 5%. Lamb exports to Greater China were A$117 million with the 24% yearon-year increase in receipts outpacing the 15% rise in volumes. The value of lamb exports to the European Union rose 24% to A$108 million. Despite the similarity in value of lamb exports to these two regions, Australia exported less than half the

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volume of lamb to the EU as to Greater China, reflecting the much higher unit value of lamb sent to the EU. Meantime, MLA say South Korea imports of sheep meat rose 19% last year to a record 4992 tonnes. The growth was driven largely by rising volumes of Australian lamb. Australian sheep meat accounted for almost 85% of total South Korean imports: New Zealand product made up the remaining 15%. While South Korea does not differentiate between lamb and mutton – calling it all sheep meat – Australian export figures showed 75% of total shipments were lamb and 25% mutton. Australian lamb exports to South Korea have increased 177% in 10 years; mutton volumes increased 25%. The Korea Times reports an increase in Chinese and Middle Eastern restaurants there, and consumers are developing an appetite for sheep meat.

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Rural News // February 21, 2012

18 agribusiness

LIC half-year earnings up 12% SUD ES H K I SSUN

DAIRY FARMER-owned cooperative LIC says increased use of its products has boosted half-year profit. The genetics and herd management company earned $120 million in the six months ending November 2011, compared to $112m for the same period in 2010. Underlying earnings were $28m compared to $24.9m in 2010-11. Outgoing chairman Stuart Bay says it’s satisfying in his last year heading the board to report on a period when some longstanding frustrations of dairying were eased. “The result reflects farmer demand for our genetics, our world

Stuart Bay

renowned artificial breeding service and herd improvement products. But the last six months have been significant because we’ve provided solutions for some jobs that can be frustrating,” he says. These jobs are herd testing, reproductive solutions, BVD testing, oestrous detection and parentage identification. LIC’s business, particularly artificial breeding, is

highly seasonal. The half year results, since they incorporate the majority of the AB revenues – but not a similar proportion of total costs – are not indicative of the secondhalf result so therefore the full-year result. The co-op’s balance sheet remains strong with total equity of $199.7m ($191.4m). Compared to November 2010, the key changes in the balance sheet are investments and derivatives $10m more than last year due to the loan to Agria, a major shareholder in PGW Wrightson. While not a direct stakeholder in PGW, LIC says its strategic interest is in supporting PGW’s agritech businesses – seeds, AgriFeeds and grain.

Dairy goat co-op on the up sue e dm onds

The half-year report also notes an $8.3m increase in fixed and intangible assets, reflecting LIC’s “strong ongoing capital expenditure programmes”. Farmers are delighted with new ways to make old practices less timehungry and more reliable, Bay says. “It’s also clear farmers are focusing on improving productivity and see the value LIC products deliver, with activity levels up for genetics, herd testing, Protrack, ear tags and disease tests.” Confidence is rebuilding in the industry, Bay says. Favourable weather gives confidence the second-half trading conditions will remain positive for LIC, he says.

GOAT MILK sales growth of 50% in two years is prompting the Dairy Goat Cooperative (Hamilton) to look for suppliers in Northland and Taranaki. “We now export to 20 countries, and sales in Malaysia, Hong Kong, China, Thailand and Korea keep growing at record levels,” co-op chief executive Dave Stanley told a recent meeting of the Waikato branch of the New Zealand Institute of Agricultural and Horticultural Science. When Stanley started with the co-op, in 1993, he was the only employee. Now there are 100, and turnover tops $100m/ year from four plants in Hamilton drying, blending and canning product. “Our plants are state-of-the-art, and

farmers are hugely impressed when we take them round the sites.” Stanley says the co-op has deliberately kept a low profile as, compared to bovine dairy, it’s still a niche market. “But despite producing a comparatively high priced product for infant food, our customers, particularly in Asia, seem prepared to pay for it in increasing numbers.” Goat milk is secreted in the same way as human’s – apocrine secretion – whereas cow’s is merocrine secretion. Protein differences are important. “Some reports say many Asians are lactose intolerant [hence demand for goat milk]. “In fact, goat milk also contains lactose, but it’s the different proteins that mainly make the difference.”

Hamilton’s Dairy Goat Cooperative is looking for more suppliers to meet booming demand from Asia.

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Rural News // february 21, 2012

agribusiness 19

Export dip tipped, then recovery pa m ti pa

EXPORT COMMODITY prices, already down 9% on a mid-2011 peak, are tipped to slip further in the coming months as Europe deteriorates and Asian growth slows, says Westpac’s latest economic outlook report. But Westpac head of agribusiness David Jones says things should

improve towards the end of the year. “We are clear the commodity prices will come off,” he told Rural News. “We will see a bit of the dip, but we are expecting a second half-of-the-year recovery…. When commodity prices come off the dollar comes off which actually helps put a bit of a buffer around the return to the farmer.”

David Jones

However, farmers can be at the mercy of how well the processors hedge the currency, he notes. “If they get it wrong, you can have double dip pain which goes back to the farm gate.” Other markets stepping up production when commodity prices are high can also in turn bring those

prices down, which has happened in dairy. For most nations the domestic market dominates, but any surplus comes onto world markets and will soften the commodity price. “So it’s a watching brief; you never know what’s around the corner.” Climate issues also

have a big influence on supply, but again New Zealand has an advantage in offering stable supply, particularly in dairy. Sheep farmers are this year building up capital stock with the good grass growing conditions, after several years drought. That’s constraining lamb supply.

But the European market is “doing it tough,” he notes. “So the orders have dried up. But you also have an emerging market in Asia. “That’s slowed down – their bubble has burst – but that will correct in the second half and we will start to see them buying again. It’s a hiccup.”

Outlook summary Dairy: prices to drop in coming months partly because of strong New Zealand season. Exports from overseas competitors add to price pressure short term. Lamb: caught between tight global supplies and a weak outlook in Europe. Prices expected to fall during the next few months, but global supplies remain tight. Despite a predicted 7% lift in New Zealand’s lamb crop it will be the second-smallest in 55 years. Beef: competition from US exports increasing due to relatively weak US dollar. Drought in the southern states boosted supply last year but will have reverse effect this year. Australia diversifying from traditional markets to more ASEAN and Middle East business. Wool: may come under pressure, though from exceptionally high levels, due to increased price competition from substitutes such as cotton and polyester. Demand in Europe to slow sharply. Australian demand will rely heavily on the fortunes of its construction sector.

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What’s your debt comfort zone? THERE’S NO single formula for appropriate debt-toequity ratios according to farm type, says the head of Westpac agribusiness, David Jones. However, a key way to survive inevitable fluctuations in farmgate prices is by keeping debt at a level which will not leave you stressed, he says. “When you are not under stress you make good investment decisions. When you are under stress they can be flawed – and there could be pressure put on you by a financier. You need to manage the risk according to how geared you are…. “Make sure you’ve got the capacity from farming operations to drive cash and service the level you take on.” Jones says the bank treats every business case on its merits. “It comes down to the individual’s ability to manage their finances. We don’t try and go into a scenario where there’s a standard benchmark. Some people have the ability to manage large parcels of debt and some people will never be able to manage debt.” For four-five years many have lived with substantially higher gearing, having bought more land, but on the whole New Zealand farmers have handled debt well since the global financial crisis, Jones says. “They have gone through stresses, drops in commodity prices, lifting of interest rates and currency impacts. They are a resilient bunch; working with their funders they’ve coped with the stress of a volatile market.”

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Rural News // February 21, 2012

Market Snapshot North Island c/kgCWT

Lamb - PM 16.0kg

Lamb Market Trends

Meat South Island

Lamb Prices

Beef Prices Change

Last Week

2 Wks Ago

Last Year

P2 Steer - 300kg

-10

4.10

4.20

4.40

M2 Bull - 300kg

-10

4.15

4.25

4.38

P2 Cow - 230kg

-10

3.20

3.30

6.16

M Cow - 200kg

-10

3.10

3.20

4.00

4.10

Local Trade - 230kg

-20

4.10

4.30

4.40

6.23

6.43

5.86

P2 Steer - 300kg

-10

3.90

4.00

4.10

-20

6.23

6.43

6.03

M2 Bull - 300kg

-10

3.85

3.95

4.00

PX - 19.0kg

-20

6.23

6.43

5.80

P2 Cow - 230kg

n/c

3.20

3.10

PH - 22.0kg

-20

6.23

6.43

5.81

M Cow - 200kg

n/c

3.10

3.05

-10

3.73

3.83

4.00

Local Trade - 230kg

-10

4.10

4.20

4.10

Last Week

-20

6.71

6.91

6.06

-20

6.73

-20

6.23

PM - 16.0kg

-20

6.73

6.93

6.28

PX - 19.0kg

-20

6.75

6.95

6.15

PH - 22.0kg

-20

6.76

6.96

MX1 - 21kg

-20

3.80

-20

PM - 16.0kg

4.10

-10

3.90

Bull - M2 300kg

-10

4.15

-10

3.85

Venison - AP 60kg

-15

7.20

-10

7.40

c/kgCWT YM - 13.5kg

Mutton SI Lamb

YM - 13.5kg

North Island 16.0kg M Lamb Price $8.5 Mutton

$7.5

MX1 -

21kg

NZ Slaughter

$6.5

1000s

$5.5 5yr Ave Last Year This Year Dec

Last Year

Change c/kg

-10

$3.5 Nov

2 Wks Ago

Last Week

Steer - P2 300kg

$4.5

Change

Last Week

Change c/kg

NI Lamb

Jan

Feb

Mar

Apr

Change

$6.5

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

$4.5 $3.5 Nov

Dec

Feb

Mar

37.2

41.5

32.6

34.6

Lamb SI

+18%

290

246

271

382

Cattle SI

+12%

16.1

14.4

12.0

11.0

Lamb NZ

+22%

536

439

409

614

Cattle NZ

-5%

53.3

55.9

44.6

45.6

Mutton NZ

-23%

169

219

203

208

Bull NI

-27%

14.6

20.1

10.6

13.5

Bull SI

+17%

5.4

4.6

4.9

3.7

Str & Hfr NI

+2%

17.2

16.8

13.9

13.0

600

Str & Hfr SI

+12%

7.3

6.5

5.0

5.4

450

Cows NI

+17%

5.4

4.6

8.1

Cows SI

+3%

3.4

3.3

2.1

1.9

NZ Weekly Lamb Kill

Last Year 80

Dec

Jan

Feb

Mar

Apr

60 40

Last Week

2 Wks Ago

Last Year

5yr Ave

£/lb

-1

1.86

1.87

2.47

1.60

NZ$/kg

-6

7.78

7.84

11.50

8.71

Jan

Feb

Mar

5yr Ave Last Year This Year

$3.0 Jan

Feb

Mar

Apr

Dec

Jan

Feb

Mar

Apr

3 Wks Ago

Last Year

5yr Ave

% Returned NI

-2%

90.6%

92.5%

55.6%

37.3%

% Returned SI

-3%

82.9%

86.1%

53.0%

50.4%

100%

2 Wks Ago

Last Year

5yr Ave

2.15

2.14

1.98

1.52

5.69

5.67

5.73

4.86

$2.10

Last Year This Year

$1.70 Nov

Dec

This Year

Mar

Apr

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI

-4%

74.7%

78.5%

76.47%

72.0%

-6%

69.4%

75.0%

69.8%

66.7%

90%

Jan

Feb

% Returned SI

60% 50% Nov

Jan

Change

Last Year

70% 5yr Ave Last Year This Year

Last Week

Procurement Indicator

Procurement Indicator - North I.

80%

$8.0

Apr

$1.90

2Wks Ago

90%

North Island 60kg Stag Price

Mar

Demand Indicator - US 95CL Beef

This Year

£1.60 Nov

Change $3.5

Feb

Last Year

Procurement Indicator

$9.0

Jan

NZ$/kg

Apr

$4.0

Dec

95CL US$/lb

£2.10

South Island 300kg Steer Price

Nov

This Year

0 Nov

Change

$3.0

$4.5

Last Year

Export Market Demand

Demand Indicator - UK Leg Price

£2.60

Dec

NZ Weekly Beef Kill

This Year

Change

$4.5

Nov

5yr Ave

-10%

UK Leg

$3.5

Last Year

Cattle NI

North Island 300kg Bull Price

5yr Ave Last Year This Year

3 Wks Ago

231

Apr

$4.0

2Wks Ago

139

Export Market Demand $5.0

Change

193

0 Nov Jan

1000s

Estimated Weekly Kill

246

150

5yr Ave Last Year This Year

+27%

300

$5.5

Lamb NI

750

$7.5

c/kgCWT

NZ Slaughter

Estimated Weekly Kill

South Island 16.0kg M Lamb Price

$8.5

Beef Market Trends

Procurement Indicator - North I.

Mar 80%

$7.0

95%

Procurement Indicator - South I.

85%

$6.0 Nov

Dec

Jan

Feb

Mar

Apr

South Island 60kg Stag Price

$9.5

70%

Last Year This Year

75%

60% Nov

Last Year This Year Jan

Mar

65% 5yr Ave Last Year This Year

$8.5

55% 85%

45% Nov

Jan

Procurement Indicator - South I.

Mar 75%

Venison Prices

$7.5

Change $6.5 Nov

Dec

Jan

Feb

Mar

Apr

65%

Last Week

2 Wks Ago

Last Year

5yr Ave

NI Stag - 60kg

-15

7.20

7.35

7.20

6.48

SI Stag - 60kg

-10

7.40

7.50

7.35

6.81

55% Nov

Last Year This Year Jan

Mar

Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted). Note: Freight is paid in the North Island but not by all companies in the South Island.

Rural News // february 21, 2012

Beef Wool Price Watch Beef prices on slippery slope Export cattle prices in the North Island have fallen rapidly in the last two weeks. This has caused the kill to spike as some farmers take the money now. Others however are refusing to accept the lower prices and are opting to cancel bookings and keep the cattle on farm. This has seen processing space start to ease up at some plants. 300kg bull averaged $4.15/kg last week. 300kg prime steer was back to $4.10/kg. Meat processors are not chasing prime and are more interested in bull and cow, presumably because the returns are better with the US imported market remaining strong. After holding relatively flat over the last two months, export cattle prices in the South Island have had the axe taken to them. Prices at some processing plants were slashed last week as meat companies reacted to the higher dollar and the higher than normal kill for this time of the year. 300kg bull and steer prices have both dropped below the $4.00/kg mark for the first time in twelve months. Store markets react to falling beef prices Prices in the store cattle markets across the country have eased in response to falling beef prices. The confidence and hype that has been floating around this market for the last couple of months is starting to dry up as farmers step back and take in the sudden changes. This has taken with it the stronger store values. In the North Island many farmers are content in holding store cattle back to help clean up the rough feed. In some South Island regions the lack of cattle feed is further compounding the weaker tone in the store markets.

Lamb

Dairy Price Watch Change

09-Feb

02-Feb

Last Year

Indicators in NZ$/T

Coarse Xbred Indic.

-5

4.98

5.03

5.34

Butter

Fine Xbred Indicator

-16

5.53

5.69

5.66

Skim Milk Powder

Lamb Indicator

+19

5.63

5.44

5.91

9.23

8.52

Indicators in NZ$

Mid Micron Indic.

Wool Indicator Trends

750

4830

6269

4072

4332

4911

Whole Milk Powder

-206

4328

4534

5283

Cheddar

-241

4854

5095

5687

Dairy Prices Trends SMP But.

WMP Ched.

5,000

550 500

CXI

FXI

450

4,000 Feb

Apr

Jun

Aug

Oct

Feb

Dec

Apr

Coarse Xbred Indicator

700

Jun

Aug

Oct

Dec

Whole Milk Powder Price (NZ$) 6,000

600 5,000

500

Last Year

This Year

This Year 400 Nov

Dec

Jan

Feb

Mar

4,000 Nov

Apr

Overseas Price Indicators Indicators in US$/kg

Dec

Jan

Feb

Mar

Apr

Last 2 Wks

Prev. 2 Wks

Last Year

Overseas Price Indicators

Change

09-Feb

02-Feb

Last Year

Indicators in US$/T

Change

-3

4.16

4.19

4.10

Butter

+25

3900

3875

4850

Fine Xbred Indicator

-12

4.62

4.74

4.35

Skim Milk Powder

-88

3388

3475

3800

Lamb Indicator

+17

4.70

4.53

4.54

Whole Milk Powder

-38

3600

3638

4088

7.69

6.54

Cheddar

-50

4038

4088

4400

Coarse Xbred Indicator

Mid Micron Indicator

0.56

Editor: Andrew Swallow............................................. Ph 03 688 2080 editor@ruralnews.co.nz................................... Ph 021 745 183

4689

-259

600

Wool continues to battle the dollar The gradual lift in the value of the kiwi dollar against the US$ in the last 12 months is having a detrimental effect on wool prices. Wool offerings in the last three months have been 5% down on last year but the dollar is now making New Zealand wool a lot more expensive for overseas buyers, hence the weakening demand and lower prices being paid.

General Manager: Adam Fricker.................................................... Ph 09 913 9632

-142

6,000

650

0.61

Publisher: Brian Hight...................................................... Ph 09 307 0399

Last Year

700

Wool

Head office Postal address: PO Box 3855, Shortland Street, Auckland 1140

Prev. 2 Wks

7,000

Lamb prices in free fall The lambs are finally starting to flow into the processing Wool Indicator in US$ 600 plants in the North Island â&#x20AC;&#x201C; in stark contrast to this time 550 last year. Orders are close to being filled for the Easter 500 chilled trade, but some meat processors may even look at 450 the expensive air freight option if need be. Farmer operating prices came back another 20c/kg last week to 400 CXI FXI LI $6.73/kg (net). Lambs are the preferred option with 350 Feb Apr Jun Aug Oct mutton taking a back seat. In the South Island export lamb prices dropped by 20c/kg last week to an average Coarse Xbred Indictor in US$ of $6.23/kg (net). A number of the bigger processors 550 have made their intentions clear as to where prices need 500 to get to. Fortunately all of them are still seeing prices 450 starting with a 6, but even that is nearly a $2/kg drop 400 from the peak November price, making plenty of lambs 350 bought in the store markets late last year look very 300 expensive. Chances are many farmers will simply farm Nov Dec Jan Feb Mar them on for longer rather than take a massive hit with margins. Currency Watch South Island lamb kill picking up the pace Last After dragging the chain for most of the season, lamb slaughter rates vs. NZ Dollar Week have picked up. Since January the national weekly lamb kill has been US dollar 0.833 running ahead of last year but still remains below five-year average levels. Euro 0.627 Most of this lift is being driven by increased numbers out of the South UK pound 0.527 Island. To date this season (Oct-now) the South Island lamb kill is running Aus dollar 0.775 slightly ahead of last season. 3.59 million lambs have been slaughtered in Japan yen 64.61 the South Island since Oct, up 1% on the same period last season. The lambs are still slow to come out in the North Island, the season to date kill Euro is still behind last season by 9% or 300,000 head.

Rural NEWS

Last 2 Wks

Change

Dairy Prices in US$/Tonne

5,000

4,000 SMP But.

3,000

Dec

Feb

Apr

WMP Ched. Jun

Aug

Oct

Dec

Whole Milk Powder Price in US$/T

5,000 4,500 4,000 Last Year

Last Year

3,500

This Year

3,000 Nov

Apr

2 Wks Ago

4 Wks Ago

Last Year

0.832

0.790

0.762

0.633

0.617

0.561

0.526

0.515

0.473

0.778

0.767

0.762

63.37

60.70

63.46

Dec

Jan

Feb

Mar

US Dollar Last Year This Year

0.80

0.70 Nov

0.55

Dec

Jan

Feb

Mar

0.51 Nov

Dec

Jan

Feb

Mar

Apr

UK Pound Last Year This Year

Last Year This Year

Apr

0.50

0.45 Nov

Dec

Jan

Feb

Mar

Apr

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Rural News // February 21, 2012

22 opinion editorial

edna

Young Farmers needs to find its voice THE NATIONAL Bank Young Farmer Contest is again in full swing with all district qualifiers complete and, at time of writing, the first regional final settled. A glance at the line-up for that decider, held in Balclutha ten days ago to choose the Otago and Southland representative for May’s grand final, shows the future of the industry, in that region at least, is in capable hands. The contest is a great event, and it’s good to see Young Farmers growing it, including a conference element again at the final. Convening the national finals of the fencing and stock judging competitions to coincide with the technical day will add momentum to the weekend which will, hopefully, draw a record turnout. The old saying ‘the more the merrier’ applies and Dunedin will be a great host city. Admittedly, it’s not going to be cheap: the conference alone is $225 and there will be tickets to other elements to come on top of that, not to mention getting there, accommodation and no doubt ‘refreshments’. However, the networking opportunities, social and business, should be many and, who knows, if you’re of a Young Farmer age, maybe you can get the boss to chip in or put some of the cost against your own business. The venue for the practical day, the Forsythe Barr Stadium, means you won’t need your gumboots or wet weather gear – guaranteed. That venue adds a certain irony to the Thursday night speeches dinner theme The Great Outdoors, but then the organisers were probably onto that. Every year the publicity machine fired up for the contest is impressive. Newspapers and other media nationwide are bombarded with releases from the day the district final dates are set to close of the televised final. Which prompts the question, why isn’t Young Farmers more vocal on other issues? It clearly has the resources and contact lists to get its voice out there. But it’s strangely silent. Is it because the industry’s youth has nothing to say? Doubtful. More likely it’s a combination of caution due to tall poppy syndrome; being too busy with day-to-day business, family, and social life; and respect for the experience of other elected industry representatives. Whatever the reasons, Young Farmers could well put them aside and, where appropriate, offer a considered opinion or call for action on certain issues. After all, its members will have to live tomorrow with the consequences of today’s policies.

“The dairy company is paying extra for midnight milking but I figured out an easier way!”

the hound Dancing with the devil

Too tight for a teabag?

DAIRY FARMERS overseas bemoan the power of supermarkets and blame them for poor returns at the farmgate. Not so here. Feds Dairy chairman Willy Leferink said the organisation “hopes this milk skirmish is the first step in a wider retail milk price war between Foodstuffs and Progressive. It’s happened in the UK and Australia so why not here?” If it does happen here, your Old Mate would like to bet Feds, then Fonterra, will be the first to complain they’re being forced to supply a domestic market with no margin.

ANYONE ELSE get a free copy this month of a certain fat, normally subscription-only rural magazine? It contained a flyer saying ‘Time for a cuppa and a catch-up’. Unless your Old Mate’s much mistaken, Rural News did a similar promo last year, and included the coffee for the cuppa. No such generosity from the other mob. Selling the subscriptions must be proving a hard task.

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Tagged lamb SO OUR lamb is so valuable in Germany some stores are security tagging it. Makes your Old Mate wonder whether there isn’t some way this could be tied in with EID here. While we don’t want NAIT extended to sheep for practical reasons, for those targeting premium markets such as Germany maybe there’s an opportunity here. Then again, maybe not – you’d need a tag on every premium cut. Leader, Ritchey, Zeetags et al would be laughing all the way to the Bundesbank.

Two versions of TAF events

High density: suck it up

READING FONTERRA’S feedback on its recent shareholder meetings over the TAF (trading among farmers) proposal, and talking to a few cow-cocky mates, set The Hound wondering whether they were talking about the same meetings. Maybe the meetings they attended weren’t representative of the 50 held nationwide, but if they were, the co-operative’s big-wigs would surely be better off acknowledging the concerns out there than digging themselves an ever-deeper hole?

SUBURBAN KIWIS’ preference for stand-alone houses – not to mention lifestyle blocks – is gobbling up our farmland, The Hound heard Feds chief Bruce Wills say last week. Good point. Your old mate has long wondered why Aucklanders are allowed to spread their city so ‘thin’. The price of owning a stand-alone house is high transport and infrastructure costs. Methinks every town planner should spend a few years in a city like Shanghai, Buenos Aires, or London. Higher density housing: suck it up Auckland.

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Rural News // february 21, 2012

opinion 23 ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all bwillsfedfarmers: Does anyone else find it somewhat ironic that those two, old enemies and relics from the 1980s – Winston Peters and Michael Fay – are now bosom buddies against foreign land sales! #strangebedfellows jmintoprofessionalprotestor: Messrs Fay, Peters, Shearer and the other 99% unhappy about capitalist Chinese landowners. Join me and my comrades at our new campsite in the central North Island. #occupycrafarfarms jamescameronproducer: I love being a Noo Zeeeland farmer. It’s a good thing I’m a trendy Hollywood movie producer and not a Chinese property developer or the welcome mat may not have been so welcoming! #horrayforhollywood dshearerlabour@jamescameronproducer: You’re lucky Labour is not in Government as you would not be allowed to buy a farm in New Zealand. Wait a minute, I’ve just been told our policy has changed and you are now most welcome to buy the whole country. #newdecisiveleadership winstonfirstandlast@jamescameronproducer: Bugger off Cameron! You’re not welcome in this country. The last thing New Zealand needs is rich, high-profile investors willing to bring money, skills and business to help build our economy. #moreforwardthinkingnzfirstpolicies leonieguineyantitaf: Fonterra farmers must throw TAF out to prevent faceless overseas investors controlling our co-op, faceless Government mandarins controlling farmers’ milk, and the truth about the Roswell UFO landings from finally being revealed. #itisallaconspiracry henryfonterra@leonieguineyantitaf: Hmmmm… is this the same Leonie Guiney who claimed Allan Hubbard was a financial genius and said she was being unfairly picked on by faceless Government mandarins after South Canterbury Finance collapsed leaving taxpayers to pick up the $1-billion tab? #credibilityissues johnloughlanzesprichair: Peter McBride will not be stepping aside as my deputy while an investigation is carried out into alleged shenanigans over new kiwifruit varieties. Like other growers, I believe he’s done a lot of hard graft for the industry and it would be most unfair to punish him for that. #welookafterourown

LATEST STORIES EVERY DAY Get upto date news at www.ruralnews.co.nz

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Dairy competition should be offshore POOR LAURIE Margrain and his parasitic company. New Zealand dairy farmers recognised long ago that our true competition was offshore; that is why we set about establishing the vertically integrated Fonterra. It was a group of former National Party cabinet ministers, led by Wyatt Creech and John Luxton, who thought it a good idea to re-set the industry back down the path of fragmentation. This policy has been enthusi-

astically adopted by the current Government, much at the expense of our country and Fonterra suppliers. Cronyism? I think so. I, as a Fonterra supplier, am appalled a New Zealand Government would force farmers to subsidise foreign players into our dairy industry to compete against us in foreign markets. As a longstanding National Party supporter I am outraged. Richard King, Riversdale

TAF belongs in the trash IF TAF (trading among farmers) ends up in the trash can where I think it belongs, then maybe our co-op can focus on a simple strategy to retain retiring farmers as shareholders instead. They know our business and should be entitled to this investment opportunity and privilege. They are the people most likely to have the spare capital burning a hole in their pockets. Given the choice, I think most retiring farmers would consider Fonterra a better bet than the Hanover type investment companies, or their capital sitting near idle in some bank. With good governance and management, we should aim at continuing to grow at a prudent and sustainable rate as we have historically done. Bruce Hayes, Hikurangi

Rural News // February 21, 2012

24 opinion

Money key issue with Crafar farms APPROVAL OF the Crafar farms sale to Chinese buyers by the Overseas Investment Office (OIO) has prompted many claims made in the battle to win the New Zealand public’s hearts and minds. In the red corner is Chinese company Shanghai Pengxin Group, whose successful bid to buy the 16 central North Island dairy farms has – according to critics – left New Zealanders as nothing more than tenants in our own land. Meanwhile, we’ve seen in the black corner a wide array of characters stirring up anti-foreigner sentiment. This has been championed by a rival group of local would-be buyers – the Crafar Farms Independent Purchaser Group – fronted by the merchant banker and former state asset seller Sir Michael Fay. Politicians are also

picking at the corpse of the Crafar deal like vultures – hoping to find scraps to sway public opinion. We’ve already seen the metamorphosis of Michael Fay – from the biggest flogger of New Zealand assets and a Swiss-based tax exile to becoming the cheerleader of ‘keepingit-Kiwi’. Ironically, Fay has been aided and abetted in his cause by his former arch-nemesis and fellow 1980s fossil Winston Peters. Perhaps the Hollywood film director and new owner of 1000ha of prime Wairarapa dairy land James Cameron could make a movie about it all: ‘The Odd Couple’ would make an appropriate title. The simple fact is the best price may have won the day. Fay’s group offered much less for the farms. It might have pushed the patriotic

theme – to the brink of xenophobia – but only in an effort to make its lowball offer more a winner with the public. The farms, which total nearly 8000ha, saw Pengxin offer $210 million; the Fay group’s bid was about $40m less at $171.5 million. Are the opponents of the deal now saying farmers cannot sell their own land to the highest bidder – if it’s an overseas buyer? If so then surely that has interesting connotations for people in Auckland, Wellington and Queenstown selling their houses

Approval of the Crafar farms sale to Chinese buyers by the Overseas Investment Office has prompted many claims made in the battle to win the New Zealand public’s hearts and minds.

to wealthy international buyers. Funnily enough, the actual sellers of the Crafar Farms – Westpac and Rabobank – are not iconic New Zealand companies either. How much noise have we heard about their ownership of these farms? Contrary to some claims, New Zealand is not over-run by overseas owners of our farmland. In fact, less than 1% of our

land is owned by non-New Zealanders. Critics of foreign land sales have also peddled mistruths about how it is of no benefit to New Zealand’s economy. Again, not true. There will be downstream benefits: more cows, new machinery and dairy shed upgrades on the agenda. No doubt New Zealand stock firms, seed companies and dairy suppliers and their employees will

secure the majority of, if not all, this business Meanwhile, part of the OIO conditions for approving the sale to Pengxin included a $14 million investment in the upgrade of the farms, including riparian planting and effluent treatment and a commitment to training young New Zealanders in dairy farming. Public walking access on at least two of the properties has also been secured. It’s a delicious irony that Landcorp, the country’s biggest corporate farmer and a state-owned entity, will manage the farms on behalf of the new Chinese owners. The arrangement with Landcorp is – more-or less – a 50/50 sharemilker arrangement; meaning at least half the profits will stay in New Zealand. Are these not all a direct benefits to New

Zealand and our economy? Those so opposed to farmland being sold to overseas buyers – especially in the farming fraternity – should be careful of what they wish for, because if they are successful in closing the door to foreign sales, they are robbing themselves and their colleagues of the freedom to sell their own land to the highest bidder. And do those who hold this view also believe New Zealanders should not have the freedom to buy land offshore either? That will be news to the farming interests in this country who own land in Australia, Chile, Uruguay and the Ukraine. There is a word for this kind of control which, ironically, was for many years synonymous with China – communism! We should be careful what we wish for.

Letters School bus speed limit no joke

Climate change hysteria

READING RURAL News Feb 7, I note The Hound’s comments about school buses and the enforcement of the 20km speed limit while overtaking a stationary school bus. I have just returned from the ‘deep south’ where the police stopped a motorist passing a stationary school bus at 120km – and towing a diesel tank. They admitted this was the worst case they had seen, but said many motorists pass school buses at speed, one known to have narrowly missed two young children. To make fun of a serious matter is not helping rural children. Russell Lyon Palmerston North

I am sad to see Rural News has fallen into the deadly grip of “Hansenism”, i.e. hysteria over climate change. “World’s 9th warmest year” (Rural News, Feb 7 2012) is a nonsense: every year some places record extreme highs while others record extreme lows. That is called natural variation. Alarmist publicity you evidently receive is funded by wealthy business interests. James Hansen, whom you quote, is but a computer modeller. A group of real climate scientists wrote in World Economics 8, 161-82 “.... no global increase in temperature has now occurred since 1998 despite a 5% increase in CO2 concentration over the same period.” Tom Evison, Birchfield

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Rural News // february 21, 2012

opinion 25

Stars aligning for wool? the critical issue of leadership: yesterday’s men will likely result in the opportunity being lost. So the question is how to remove the egos that appear to be in the way.

were, where they came from and eventually, where they went. It would seem some must have made money but it wasn’t for me or my wool producing mates. During the last decade since disestablishment, there have been groups of passionate souls who still believed bits of the Wool Board can be restored. These worthy attempts looked and sounded good. Some have failed; others are still works in progress. The result is somewhat convoluted, with few outside the industry sure who’s still breathing. But talking to those close to the action I’m told the industry is entering a significant period of change. It’s not going to be hand holding sessions singing ‘if I had a hammer’. It seems two of the wool entities have made substantial before tax profits, which makes them interesting for those wanting to be part of the action. One is fighting a takeover bid which is targeting its scouring operation and the other operation needs more wool to satisfy a brand marketing success in the USA. If the take-over is successful scouring will be faced with a monopoly. It would inevitably result in more greasy wool going to China – something that is already starting to happen. Some say it will be a huge breakthrough if these two operations can be persuaded to work together. Reliable track records are a plus: they are already successfully functioning in the marketplace; both have loyal clients and staff. There’s also the issue of trust: the demise of the Wool Board and the way it was disestablished was seen by so many farmers as unforgiveable. Lack of trust is probably why several other organisations seeking farmer support have failed. And there’s

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THE NEW Zealand Farm Environment Award Trust has dropped “award” from its name to become The New Zealand Farm Environment Trust (NZFE). Under its charter, all activities are linked to and designed to benefit the Ballance Farm Environment Awards programme but NZFE is also involved in other industry-good activities promoting sustainable farming, hence the new name better reflects “the long-term environmental leadership focus the trust was founded on,” says chairman Jim Cotman.

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The once proud and powerful Wool Board, now little more than a shameful memory, has been well picked over. But the prime pieces of the board have long gone, history has already shown producers were the inevitable losers. The board had some flaws but these were heavily outweighed by the huge contribution it made to farming. However, from within the ruins that was once the Wool Board there is a small ray of hope that may be the catalyst that captures a little of the past magic. The disestablishment of the board began in 2000. It had results producers never expected. They found there were no pots of gold, other than the $3.5 million that was coughed up for the McKinsey Report on Wool Board restructuring. Remember WRONZ, and Garth Carnaby, capless bales, no-tramp presses, wool handling and shearing courses, objective measurement and Sheep Improvement Ltd were some of the ventures the board kick-started. Then there was Woolnet, an internet selling system that could have matched Trade Me. Where is it now? In the past, if there was something that could help the wool industry, the board was usually able to underwrite its development. Remember who set up the highly successful Wool Services International. However, when the disestablishment dust settled and farmers looked around, the shambles was a far cry from what they had naively expected. There had been a wishful belief that from somewhere, someone would have stepped up to the plate and be looking after farmer interests. The Wool Board didn’t die and disappear overnight, in its place was a plethora of companies, some with funky names: Canesis, Ovita, Covita, Tectra, Orico, Paraco, and Disco. Not that many people knew what they

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Rural News // February 21, 2012

26 management

Soil-first switch suits far north GARETH G I L LATT

NINE YEARS ago Erica and Lindsay Whyte’s farm, just south of Doubtless Bay, had a problem with land sucking up too much fertiliser and paddocks they weren’t able to calve cows in. Now the 320ha beef farm produces more grass than ever and doesn’t cost as much to run. It’s also less vulnerable to extreme weather, coming through the devastating 2009 drought better than many nearby properties, they say. Their secret is a ‘soil first’ approach, as relayed

at an Association of Biological Farmers field day earlier this month on their farm, the first of its kind held north of the Bombay Hills. According to Whyte it began seven years ago when he was not happy about how his farm was performing and took to reading books on soil fertility to see if he could improve his land management. “Normally a fertiliser book, if you have insomnia, is the best thing to read,” says Whyte. “But I couldn’t put these books down.” Whytes began apply-

ing fertilisers other than superphosphate and changed their paddock sizes and grazing routine to take advantage of the extra fertility the cows were providing the soil. They made paddocks smaller and left cows on pasture for one day or two at the most. “This place produces

about 18 tonnes of poo a day; it’s hugely beneficial and we’re seeing the results,” Lindsay says. The results are already a lower fertiliser bill and more drought resistant farm. “We know where we’re going and we know the money we’re spending is going on the right thing,” says Erica.

farm facts

Where: Taupo Bay, Northland Type: Beef breeding & finishing Scale: 840 head on 320ha Soils: Clay and volcanic mix

Getting to the root of the problem: Nicole Masters discusses soil structure.

“It’s empowering.” Nicole Masters, key speaker at the field day and director of Integrity Soils, says the Whytes are among a fast-growing number of farmers taking

a soil-first approach to farming. “About 45,000ha of New Zealand is being farmed under a soil-first system and that number is growing rapidly.”

What is biological farming? ASK PEOPLE exactly what is biological farming and there’s a good chance they won’t know. Inspired in the US by Dr William Albrecht in the 1940s, it’s a movement built by farmers and scientists who believe the nutritional level of food can be directly related to the quality of the soil it is grown in. While it shares a lot of ideas with organic farming, Nicole Masters, director of Integrity Soils, says it is quite different and can sit quite comfortably in either conventional or organic farming models. “The aim of biological farming is to bring a scientific approach to farming,” says Masters. “It’s looking at weeds and parasites on the farm as indicators of bigger problems and then solving those problems instead of just killing the weeds.” Quick fixes such as glyphosate, urea and superphosphate are shunned and the aim is to get the soil back to a healthier balance. “There are a lot of misconceptions about biological farming. Some of the largest, high-intensive farmers are using this method and are maintaining or improving their production.” The movement is growing rapidly in New Zealand with about 45,000ha now farmed under a soil-first system. Masters says the Association of Biological Farmers organisation, formed in July 2011, has a growing membership. Another field day was held this week [Feb 20], in Canterbury; South Otago and Hawkes Bay events will take place March 6 and March 20, respectively. See: www.biologicalfarmers.co.nz

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She describes biological, soil-first farming as an end to reliance on glyphosate, urea and superphosphate. Instead it involves monitoring stock condition, pasture condition and the presence of weeds to determine how the farm is going and what problems it might have. “ It’s like being a detective; you go out every day, gather clues and work out from those clues what needs to be done to get the farm working well.” Masters says soil tests and Brix tests (pasture test in which herbage is measured for sugars, minerals and trace elements) are key clues to making sure the soil has all it needs to remain fertile and produce the best quality feed possible. Whyte says their focus has been on getting a balanced soil and getting some more trace elements like magnesium into the soil. This they do by spreading fertiliser themselves, in small quantities frequently. “Potash tends to be absorbed quickly so we’ve found doing lots of little applications of potash has been successful.” Masters says one of the best indicators of what soils are lacking is the weeds predominating on the land. For example, most weeds seen in pasture indicate low available calcium, and many broadleaf weeds including thistles indicate low phosphorus and/or high potassium. She says the good news is that if the conditions are favourable it is possible to deal with glaring deficiencies in a short time. “The first farm my husband and I were on was known as the yellow farm because it was filled with ragwort,” says Masters. “But one and a half years later you couldn’t see a ragwort on that farm.” The same is true for pests and parasites, she says. Whyte’s has recently faced the problem of carrot weed and buttercup, both signs of surface crusting. He says the farm’s clay soil base is prone to pugging, resulting in heavy pans in some paddocks.

Rural News // february 21, 2012

management 27

farmer “If a paddock pugs its basically stuffed for two years.” However, he plans to aerate the soil with mechanical aerators and long-rooted forage crops to break up the pan. Masters says this

experimentation is the core of biological farming. “We don’t tell farmers to go out and do something all the way through the farm; we get them to try it on a paddock, or a small section, first, to see if it works.”

Mixed pasture pleases

Some weeds can be beneficial, Grant Fallon told the field day.

PASTURES WITH more than two species are good for more than just the cows, Agrissentials Far North representative, and Hikurangi farmer, Grant Fallon told the field day. He says soil, cows and beneficial bugs such as bees get a boost from mixed swards and on his farm bloat is never a worry, despite pasture being up to 40% clover. Meanwhile nearby farms with only 20% clover and the rest pure ryegrass have to be constantly on guard. “You can’t eat steak and chips all your life; you need a bit of variety.” One way to diversify swards is to allow fodder crops to re-emerge in following pastures. Chicory, plantain and sunflower are great break fed, but also beneficial if allowed to resurface, he suggests. “Chicory will turn up for three years as long as you don’t graze it too hard and destroy the crown.” While everybody knows the nitrogen fixing qualities of clover and lotus major, plants usually considered weeds can also benefit soils. Dock’s deep tap root gets into subsoil, pulling up otherwise buried nutrients while primitive grasses such as kikuyu are good in dry times when nothing much else will grow, he notes. “The only thing with kikuyu is you need to top it if it gets too long to make sure it keeps some nutrients.” A warning about bees: beware the native trees such as karaka and kowhai; these can kill the imported bee most beekeepers use.

Seedhouse’s pasture persistence pointers CHECK RYEGRASS seed labels for the species when sowing, says Seed Force. While pests, disease, endophyte and drought have been flagged as contributing to the recent rise in persistence problems with pasture, plant genetics play a big role too, says the firm’s technical director, Andrew Moorhouse. “One of the major focuses for many ryegrass breeders in the last 20 years or so has been to develop new varieties with strong establishment vigour and excellent cool season growth… To

achieve this has meant the incorporation of Italian ryegrass genetics as part of the crossing program,” he point out. But Italian ryegrass (lolium multiflorum) is a biennial and crosses with perennial ryegrass (lolium perenne) to produce hybrids with extended shoulder season growth but persistence can be compromised. “One of the important characteristics of Lolium perenne and the reason why it has been used so widely as a perennial pasture species for centuries

worldwide, is its natural ability to continue producing high numbers of vegetative tillers over time,” explains Moorhouse. “This means as the older tillers mature and die the pasture can retain its density which maintains production and prevents the invasion of weed species. “Hybrids of Italian and perennial ryegrass will combine features of both parents but there is likely to be a trade-off so that as the proportion of Italian genetics is increased in the hybrid, there will

be increased cool season activity and establishment vigour but reduced production of vegetative tillers and therefore perenniality.” Hybrids of Italian and perennial ryegrass are classified as Lolium x boucheanum. Moorhouse says if the longevity of pasture is one of the main criteria when selecting a new ryegrass, he should first check it’s certified seed so it is guaranteed to be the variety stated on the label and meets MAF purity standards, then make sure

Andrew Moorhouse

under species on the label it says Lolium perenne. “Another factor… is to evaluate the trial data. When reviewing perennial ryegrass trials note how many trials have been conducted, where they have been held and for how long. Ask yourself, are the trials published being carried out in your region under ‘real life’ grazing conditions or in an ‘ideal’ environment under irrigation in an area different from yours?”

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Rural News // February 21, 2012

28 animal health

Tea tree oil for flies and lice? AL A N HARMA N

AUSTRALIAN RESEARCH has found tea tree oil effective on fly strike and lice in sheep. “Our lab trials showed a 1% tea tree oil

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formulation reliably produced a 100% kill rate of lice and lice eggs, but we were pleased to see our pen trials generated the same results,” says project leader Peter James of the Queensland Alliance

for Agriculture and Food Innovation. No lice were found two, six, 12 or 20 weeks after sheep shorn two weeks previously were dipped with the 1% tea tree oil formulation. “We also tested sheep with longer wool and the results showed that jetting 1% and 2% tea tree oil formulations reduced louse numbers 94% in comparison to controls two weeks after treatment.” Besides killing maggots, lab work also showed the oil has a strong repellent effect against adult flies, preventing eggs being laid on the wool for up to six weeks. “Tea-tree oil could be effective as a preventative treatment for wounds caused by mulesing, tail docking or any wound likely to be struck,” James says. “It has also shown to have antibacterial properties and is suggested to have wound healing effects.”

Use of natural products on a commercial scale is often hampered by variation in quality. But tea tree oil is well placed as its composition is already specified under an international standard, ISO 4730, notes James. This ensures the supply of a consistent product, essential when using a product as an insecticide. “Getting the formulation exactly right is vital and it’s something requiring more research. It’s not as simple as mixing tea tree oil with water and applying it to your sheep; it’s a complex and exact science. “More research needs to be done before we can definitively say tea tree oil is a viable treatment for fly strike and lice infestations, but these initial findings are encouraging.” The project was coordinated by Australia’s Rural Industries Research and Development Corp.

Soil’s role in animal health GARETH GI L L ATT

KEEPING SOIL and pastures healthy can cut drench bills, judging by commentary at an Association of Biological Farmers field day early this month. Field day host Lindsay Whyte, Taupo Bay, Northland (see p26) relayed his observations of a Beef and Lamb New Zealand research project held over 12 weeks on his property. Half of a mob of heifers was drenched, the other half wasn’t. Whyte says the stock drenched gained an extra 400g/day in the first six weeks after treatment – a huge growth. “But then a funny thing happened,” Whyte told the field day. “In the second six weeks the ones that hadn’t been drenched caught up.” Whyte says he wants to do more research before cutting down on drenching routines but his experience was echoed by a farmer in the audience who says he now has two-year-olds which have never seen a drench gun, and they show no sign of ill-thrift. Nicole Masters, director of Integrity Soils, told the gathering she attributes this to the fact parasite and disease challenges escalate with nutrient imbalances. Copper deficiency, for example, often results in heavier worm burdens; low sulphur increases skin problems, including lice; facial eczema is linked to zinc deficiencies. “Pests, diseases and weeds are there for a reason. Once you work out why they’re there you can start to manage them economically with a proactive approach as opposed to a reactive one.”

Rural News // february 21, 2012

animal health 29

Cats and toxo always present p e t e r bu r k e

YOU’LL NEVER catch the cats so vaccination is the best way to prevent foetal and lamb losses to toxoplasmosis. “Usually the young cats are the problem, not the older ones,” says MSD Animal Health veterinarian, Jo Chisnall, a speaker at a recent Beef and Lamb New Zealand field day in Taranaki. “They get infected from 6 to 12 months and shed the disease in their faeces for one-two weeks, then become immune themselves.” One cat can spread the disease widely and rapidly; estimates are one gram of cat faeces can infect up to 5000 ewes.

“Unfortunately, it’s very hard to control all the cats on your property. There are a lot more feral cats on farms than people realise.” So it’s important farmers vaccinate livestock. Getting rid of the family pet will not solve the problem. Serological testing by MSD over the last five to 10 years, checking exposure to toxoplasmosis, shows it’s present on all farms. The time to deal with it is as mating time nears. Mixed-age ewes have generally had more exposure than two-tooths and hoggets, so these younger animals should be considered for vaccination. “Focus on your firsttime lambers, the two

tooths and hoggets, and vaccinate them at least four weeks before they go to the ram. The vaccination for toxo is about $2 per animal and it is a oneoff-for-life injection.” In unprotected stock toxoplasmosis causes significant abortion losses and less obvious embryonic loss or dry ewes, and

birth of weak, non-viable lambs. The cause is a protozoan parasite picked up by cats from rodents and birds, then passed to sheep through cat faeces on pasture or hay. The vaccine is unusual in that it’s ‘live’ and requires special handling. “It has just a ten-day shelf life so once it’s been pur-

chased it should be used as quickly as possible.” Blood testing a sample of ewes in the flock should give a good idea of the status of the flock in terms of toxoplasmosis, Chisnall says. Toxoplasmosis vectors: cats and mice (the furry kind).

THE PROOF IS IN THE PREPARATION

Campy vaccines best soon too CAMPYLOBACTER IS another disease that can cause huge abortion problems – up to 70% in naïve flocks, notes Chisnall. Birds and sheep are the main vectors for the bacterial disease which is carried in the intestine as a result of contact with aborted fetuses, afterbirth or vaginal discharges due to the disease, or pasture in contact with such material. Chisnall points out it can survive in soil, water, hay or pasture for up to three weeks and even longer in winter. “It can it can be a devasJo Chisnall tating disease. Historically the disease is seen as just causing abortions but there are other lamb loss that [result]… birth of weak, non viable lambs.” Like toxo, tests show campylobacter present on most farms but expression in stock is less clear-cut. “Losses are often scattered, ongoing and not readily detected. [But] the impact on your lamb productivity will be significant.” Vaccination is the best treatment option – two shots, four-six weeks apart. “It’s not essential that this happens before the ram goes out but it is certainly best practice.”

in brief One-hit selenium TRIALS WITH a selenium-rich wheat byproduct at the US sheep Experiment Station, Idaho, show the feed can provide 10 times a ewe’s daily requirement of the frequently deficient element. Ewes passed the supplemental selenium to fetuses during pregnancy and to nursing offspring through milk thanks to the selenomethionine form of the selenium, which is more persistent than traditional supplements. Ewes did not need any additional supplements until lambing the following year. “All of the costs involved with delivering supplements on a frequent basis year round are eliminated,” says research leader Greg Lewis.

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PROUDLY AVAILABLE FROM YOUR LOCAL VET Merial is a Sanofi company. MERIAL NEW ZEALAND, LEVEL 3, MERIAL BUILDING, OSTERLEY WAY, MANUKAU CITY, NEW ZEALAND. WWW.MERIALANCARE.CO.NZ. ®MATRIX, ®EXODUS, ®ECLIPSE, ®IVOMEC, ®EPRINEX AND ®GENESIS ARE REGISTERED TRADEMARKS Of MERIAL LIMITED. REGISTERED PURSUANT TO THE ACVM ACT 1997 NO’S: A7353, A9270, A7191, A9222, A6481, A7456, A8228, A10018, A10131 & A10640. SEE WWW.NZfSA.GOVT.NZ/ACVM/ fOR REGISTRATION CONDITIONS. ©COPYRIGHT 2011 MERIAL LIMITED. ALL RIGHTS RESERVED. NZ-11-MAL-173

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Rural News // February 21, 2012

30 animal health

BVD committee considers next steps ba r ba ra g illha m

WHETHER NEW Zealand moves to eradicate bovine viral diarrhoea (BVD), or what the next steps are in a co-ordinated approach to control the disease,

will be up for debate next month at a meeting of the BVD steering committee. “We’ve got some decisions to make about where we go from here,” committee member Andrew Weir told Rural News.

Nationwide roadshows for veterinarians last year launched a BVD management toolkit and attracted 360 vets. The roadshows were successful and the committee is now at an “in between stage”, calculat-

ing costs of various control programmes, Weir says. “Once we have an idea of that we will be in a much stronger position to start pushing BVD control if that’s appropriate.”

BVD losses are significant in both dairy and beef, says Etham Vet Services Andrew Weir (right).

BEFORE HE GETS DOWN TO IT, MAKE SURE THEY’RE ALL UP TO IT.

Throughout the country BVD-infected regions vary: Taranaki and the West Coast have little infection; Northland and Canterbury have the highest incidence. “Even in the low-incident regions I suspect we will find it’s worthwhile taking action, possibly even more worthwhile in some cases because if you have a herd that has no immunity then the consequences of an outbreak are dramatic. They haven’t built up any resistance and it can have adverse effects upon a large proportion of the herd, so vaccinating is important.” Weirs says it’s unfortunate one of the two vaccines on the market was recalled last year out of fear it caused bovine neonatal pancytopenia (BNP). “I don’t think they have yet completely nailed down the cause.” Losses due to the disease are significant in dairy and beef; some estimate 60% of animals are infected, Weir says. Besides symptoms of diarrhoea, increased mastitis, lameness and poor conception, the infection suppresses animal’s entire

immune system. Many countries are now implementing national eradication programmes. Scandinavia as a region is already BVD-free and Switzerland and Austria are well on their way to a similar result. “All [New Zealand] has now is ‘ad hoc’,” says Weir. “It is up to individuals to do what they want to do and if it remains like that then obviously we won’t eradicate BVD. “If New Zealand did decide to work towards eradication it could still be voluntary for most of the way but at some stage there would need to be significant buy-in from the industry as a whole to make sure there weren’t reservoirs remaining. That’s a long way down the track.” Meanwhile Weir advises farmers concerned about BVD to talk to their vets and find out what they can do.

in brief drenches can help cut pneumonia To help ensure your rams and ewes perform at tupping use ALLIANCE®, a low-dose triple combination oral drench with cobalt and selenium. During tupping, rams are at increased risk of clostridial disease, so vaccinate with MULTINE® prior to joining. Ewes may also need a MULTINE sensitiser to set them up for their pre-lamb shot. And so lice won’t be a problem over winter, finish the job with MAGNUM® – it’s guaranteed* to work. Trust COOPERS to get your flock ready for action. Ask for COOPERS at your local animal health retailer. *COOPERS guarantees MAGNUM will control lice in your sheep when you follow the COOPERS 10 Point Lice Management Plan. Find out more at www.coopersonline.co.nz ACVM Registration No’s: A10249, A7704, A934 and A935. ®Registered trademarks. Schering-Plough Animal Health Limited, 33 Whakatiki Street, Upper Hutt. Phone: 0800 800 543. PTUP-523-2011 Priority Partnership is a registered trademark of Nufarm Limited.

Pfizer says longer-lasting injected wormers can always help to reduce enzootic pneumonia. In lambs and hoggets pneumonia outbreaks are almost invariably associated with stress from mustering and yarding for drenching or other animal health interventions, often in dry, dusty conditions. Clinical signs are sheep lagging behind the mob, respiratory distress and coughing, especially when moved, and nasal discharge. Some die however others show no symptoms other than compromised summer-autumn weight gain. The firm says Cydectin Long Acting Injection for sheep minimises handling while maximising worm control through 91 days’ persistence against Barber’s pole, 42 days against Trichostrongylus colubriformis and 112 days against Ostertagia.

Rural News // february 21, 2012

animal health 31 Don’t push cows to the shed or feet will suffer, advise vets.

Lameness legacy from earlier wet weather WET SUMMER weather has caused a higher-thanusual incidence of lameness in Waikato and Taranaki dairy herds, vets say. Vet Jenny Akehurst of Anexa Animal Health, Te Kauwhata, is seeing more cases and more people coming to buy lameness remedies. “It went up through January and we’ve had a few calls already this month.” Akehurst says they advise farmers to make sure lame stock are separated from the main mob, whether or not they are on medication such as penicillin for joint infection. “If they are on penicillin obviously they have to be kept separate as the milk cannot go into the normal vat. But also we advise farmers to try to put stock in a paddock close to the shed so during milking they are not having to walk far.” Driving up the back of the cows on quads is

a big no-no, and must be avoided, Akehurst says. “Cows will walk as fast as they can and the lame girls are going to be the ones slowing you down at the back. “Pushing them up doesn’t make them go any faster, it just means they can’t check where they are going and will probably end up standing on stones and things like that which ends up causing further problems.” Taranaki vet Jimmy Bruce, Eltham Veterinary Services, says they have noticed more lameness since wet summer weather has caused hooves to soften. “A number of farmers are walking their cows over mats soaked in a solution of copper sulphate, or through copper sulphate baths, after milking to help harden their hooves.” Bruce agrees it’s important not to rush cows as this aggravates foot problems. He suggests farmers let them wander at their own

pace to the milking shed. He recommends cows be kept closer to the shed to reduce walks between milkings. “Lameness can cost farmers a lot of money; you’ve got lost milk production, and then you’ve got the cost of treating it and also less chance of getting in calf.” Left untreated, lameness in one hoof can lead to problems in other hooves as animals try to avoid using the sore claw, so it’s important farm-

ers are vigilant for the first sign of it, he adds. Preventative measures include limiting the distance cows walk each day and ensuring the track is wide enough for the size of the herd and has a nondamaging surface such as fine gravel for cows to walk on. Also, ride farm bikes no less than one fencepostlength distance behind cows, don’t allow dogs to nip their heels, and allow cows to come to the milking cups at their own pace.

Keys to healthy feet • Don’t push cows in laneways or yards. • Keep yards clear of stones. • Split off and treat at first sign of sore feet. • Copper sulphate can help harden hooves. • Keep lame mob as close to shed as possible.

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Germans looking at welfare labelling meat PETER BURKE

GERMANY’S GOVERNMENT is seriously considering animal welfare labelling meat sold in that country. Chris Houston, senior technical policy advisor for Beef and Lamb New Zealand, says it’s not yet known whether such a scheme would be voluntary or compulsory, but where Germany leads the European Union may follow. “We have evidence to suggest animal welfare is among the top con-

siderations German customers take into account when purchasing our lamb,” he told a recent field day in Taranaki. “This and price, availability and their on-the-spot desire for the meat. German consumers have a reputation for attention to detail and a strong social consciousness.” They want to know more than just the fact the food is safe. “They now want to get an insight into how the animals are farmed.” Such interest comes with increased affluence of consumers and

targeting premium markets. “I feel fortunate to represent producers who care strongly about the welfare of their animals and have a strong commitment to this.” The EU has released a fouryear animal welfare strategy which Houston says signals strong moves toward educating consumers including animal welfare. Consumers need informing about New Zealand’s farming practices and how and why they differ from those in Europe where housing livestock is more common.

250ml Flystrike Dressing pack. For more details on this revolutionary new treatment, talk to your animal health stockist now, call us on 0800 ELANCO (352626), or view our website www.elanco.co.nz.

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Rural News // February 21, 2012

32 machinery & products

Savings in both hands N E I L KEAT I NG

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tot up the figures by reading New Holland NZ promotional material, says product specialist Greg Moore. “The diesel savings are there to see, and they’re greater than we ‘officially’ promote,” Moore told Rural News. Exhaust emission clean-up and fuel savings go hand-in-hand, as befits a tractor maker taking a “clean environment” stance, Moore says. “A further advantage is power and torque are also increased.” “Of course the stringent EU rules on emissions don’t yet apply in New Zealand but they will. And meanwhile farmers and contractors are choosing New Holland for diesel savings.” The ‘big blue’ tractors use exhaust clean-up fluid

New Holland NZ product specialist Greg Moore.

called (in New Zealand) GoClear (also known as AdBlue or DEF). This goes in a separate tank at a prescribed rate of two tanks (395L ea) of diesel to one tank (48L) of GoClear. “The factory specifications for the ratio of GoClear to diesel is 5% at maximum engine load, but in reality the owners of NH 220hp tractors tell us they use one 48L fill of GoClear to up to three or four tanks (up to 1580L) of diesel,” Moore says. “So with the extra power and torque, productivity increases are substantial

while costs are reduced.” New Holland in Europe is going at carbon footprint reduction and fuel savings with a passion. A new website (www.thecleanenergyleader.com) has a carbon calculator to enable visitors to compare their present tractor fleet’s ‘footprint’ with that of New Holland machines. Of course, the idea is to show how the website visitor could reduce carbon emissions by re-equipping with Tier 4A compliant, GoClear SCR machines. “This technology reduces NOx emissions by

50% and fuel consumption by up to 10%,” New Holland says. Tractor owners can choose to calculate their carbon footprints either based on annual fuel usage or hours worked. Then they input data including their tractors’ current tier level and horsepower range, the price of fuel and GoClear/DEF, together with their average work rate. The calculator figures the carbon reduction (in tonnes) and the cash they could save by cutting fuel consumption. The site also offers a

‘virtual tour’ of the NH pilot Energy Independent Farm at La Bellotta, Italy. The point of this experiment, says NH, is its vision of “a world in which farmers will be able to satisfy their own energy needs. They will power their NH2 tractors with pure hydrogen produced on their farms.” “This sustainable, energy self-sufficiency approach to agriculture will free them from fluctuating energy prices and the negative impact they have on farm incomes.” www.labellotta.com

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Rural News // february 21, 2012

machinery & products 33

Compact new mill LUCAS MILL has added a new portable mill to their range of circular, swing blade portable sawmills. The company has for 18 years made affordable, portable sawmills in Australia. Now they are recognised in 100 countries. At least 12,000 machines have been sold.

Says Lucas, “Renowned for their versatility, light operating weight and excellent portability, the mills have contributed to the achievements of many individuals and organisations in diverse pursuits throughout the world.” The new model 4 is compact and is ideal for

a wide range of customers including men’s shed groups, furniture makers, wood workers, owner builders and small farm operators. The model 4 - 6 is capable of cutting 106mm in vertical and horizontal planes, and up to 3.6m long. Power comes from a 6hp Honda

motor with manual start. Similar to the larger circular Lucas mills the model 4-6 can be fitted with an optional slabbing attachment, planer and sander. Tel. 07 856 5509 newzealand@lucasmill. com www.lucasmill.com

Grass growth monitoring made easier new software for LIC Minda is said to make grass growth monitoring faster and easier. Called Land & Feed Basic, this is a free tool for recording pasture covers and creating a feed wedge. “You need a feed wedge to know what you need to do to get it right and to make decisions, because if you get it wrong, then you’ll have to buy in more feed,” says Johan van Ras, Morrinsville, a dairy farmer who helped test it. Many dairy farmers use Minda to improve herd performance, and LIC general manager farm systems Rob Ford says it is a logical extension to provide farmers with tools that make it easier and more efficient to monitor grass growth. “Farmers want to manage every aspect of their farm operations; they trust Minda to manage their herd records; now it does their land as well. “With Land & Feed they can quickly see how each paddock is tracking and which are growing, which aren’t, and all compared to pre- and post-grazing targets. “They just need to add data from the last farm walk, and Minda does the rest, saving all the time normally taken to collate and interpret the data.” Says Johann van Ras, “It’s simple to use. I scanned an aerial picture of my farm, marked all the paddocks and it was ready to go. “Now after every farm walk with my plate meter I plug in the pasture cover readings for each paddock and it’s all recorded. I get a feed wedge which shows me if I’m hitting the target line and where I need to be for grass cover. “I can look at the feed wedge and know what I need to do with specific paddocks such as apply urea, slow down the round or nothing.” Land & Feed Basic is the first of a number of pasture management programs for Minda. A ‘pro’ version will follow later this year with better tools for planning, forecasting and feed budgeting. www.minda.co.nz

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Rural News // February 21, 2012

34 machinery & products

Auto steering boost to mixed farm efficiency and productivity – especially the potato and carrot cropping. “We got the MF 8650 in September and it went

ments, we can follow the original beds. “When we got the new tractor we budgeted on using it for 1200 hours a

“The Topcon system is also user friendly. The screen is selfexplanatory and easy to follow. After you’ve done it once, you can use it pretty easily.” straight to forming beds for potatoes and carrots… the most important part of the operation, where we need accuracy. Using the Topcon system, during later passes with the planter and other imple-

year. By early January we were up to 700 hours.” The MF 8650 was factory fitted for auto steering. The Topcon system was installed by local AGCO dealer JJ Ltd, Christchurch. It uses the

Omnistar HP correction signal. Hamish Friedman drives for Chris Judd on the farm and in summer manages Judd’s contracting operation, Hawkins River Contracting, run with business partner

Dwayne Molloy, doing mostly big square bales. It employs six at peak season. Experienced with other brands of auto steering, Friedman had not used a Topcon system before, but finds it “very good… accurate, and you can get down to 3.0cm differential so it’s spot on.” “The Topcon system is also user friendly. The screen is self-explanatory and easy to follow. After you’ve done it once, you can use it pretty easily.” The Topcon system has on-screen visual aids and coverage maps. It offers a range of guidance patterns including boundary and

U-turn recognition, facilitating turns and locking on to the next swath. Light and portable, it is simple to move from vehicle to vehicle. It allows the operator to set up configurations for front or rear implements and single or double-trailed hitch points. Friedman describes the MF 8650 as “more advanced” than others he’s driven, “easy to use and with driver comfort second-to-none [because of] good suspension…. It’s a good solid tractor; we do a lot of hill work and it’s stable.” The Massey Ferguson 8650 is powered by a 6-cyl-

inder AGCO Sisu Power engine driving through Dyna-VT transmission. Chris Judd says he likes the tractor’s Selective Catalytic Reduction (SCR) engine – “very efficient on fuel for a tractor of its size” – and its 53km/h transmission, good for travelling for contracting. “We operate from the coast to the mountains between the Rakaia and the Waimakariri Rivers, and we do a bit north of the Waimakariri as well. We tow all the grass gear with the tractors so the ability to do 50km/hour is good.” Tel. 0272 708 027 www.fendt.com.au

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machinery & products 35

New insulators outflank ‘shockers’ pigtail fence insulators whose material rots in sunlight have brassed off farmers buying them and prompted a response from Strainrite (Robertson Engineering). Principal Brian Collins says he has been “besieged by farmers and retailers with pigtail standards whose insulation material has deteriorated in a relatively short time.” This is “frustrating for his business” given his products are made to last 10 years, he says. The company says it found the products in question were not theirs but an import. The insulation material was found to lack the UV stabilisers that would ensure a long life for the plastic component. “The plastic is cracking,” Collins says. “Due to our harsh climate – as much the cold and wet as the unforgiving heat – the plastic deteriorates. “It can be a minute split that allows or causes the power to be earthed through the steel standard, which makes the fence useless as an electric barrier.

“Worse still, when you grab the offending standard you get a shock. It doesn’t make for happy farming staff. “These don’t do the New Zealand manufacturers any favours either, especially when it is our technology they are using.” Strainrite says it has looked at “the whole insulator issue and come up with a new idea and design giving farmers another option in the fencing arsenal.” Says Collins, “As insulators in New Zealand’s harsh climate have a life expectancy of about 10 years, a huge number of fences and components are now reaching their use-by date”. The company’s newly designed outrigger, with a replaceable insulator, means if an insulator is damaged by man or beast it can be quickly and easily replaced without having to change the whole assembly. It mounts easily on a fence and wire. It takes take all gauges of wire.

Strainrite pigtails (left) contrast with others whose insulation has cracked.

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Rural News // February 21, 2012

36 machinery & prodcuts

Weed seeds head for oblivion TRIALS HAVE begun on an Australian-designed seed destructor, offering the promise of an extra tactic in the grain industry’s battle against herbicide resistance in weeds.

The Harrington seed destructor is named after its developer – Western Australian grower Ray Harrington. Towed behind a harvester like a chaff cart,

The Harrington seed destructor in action in South Australia.

the destructor has been designed around a cage mill crushing unit originally developed for use in the mining industry. This is designed to destroy weed seeds present in chaff during harvest. The destructor has completed harvest trials and demonstrations for growers in South Australia, Victoria and NSW. Results of the trials will be known in March-April when the season-opening rains stimulate germination of weeds, particularly annual ryegrass. Australian Herbicide Resistance Initiative (AHRI) researcher Michael Walsh says the trial sites will be revisited as soon as the break in the season occurs to assess how well the unit reduces annual ryegrass emergence. “We are hoping for an early, widespread break so we can undertake the evaluations before growers apply herbicides,” he says. Walsh, working at the University of West-

ern Australia, says the trials and demonstrations involved 15 sites over 16 days and across 4000km. “We were happy with how the trials went. It was a huge success in terms of the number of grain growers who came out to see the HSD in action, and the feedback from growers was positive.” The trials were part of a new Rural Industries Research and Development Corp-funded look at harvest weed seed management systems. They showed the core principals of the machine’s cage mill were sound; only some fine turning was required for it to enter commercial production, possibly this year. The developers stress it is not a ‘silver bullet’ in weed management – more a ‘string in the bow’ of an integrated approach.

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Amazone Catros 3001-7501 series disc harrows deliver high speed tillage for intensive stubble mixing and are ideal for incorporating maize and straw, cultivating grassland, rejuvenating fallow fields and much, much more. Your owner operator bonus includes higher work rates, less fuel guzzle, lower wear and tear and less blockage downtime. Trailed or mounted units with cutting widths from 3m to 7.5m available right now. Contact your local Amazone dealer for full details.

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Rural News // february 21, 2012

motoring 37

A most capable truck on road or rough THE SMILING corporate face of Mazda on the front of a ute makes a bold statement. Not everyone has found it a comfortable mix, the curvy swoops that are Mazda’s signature look melded onto the more traditional profile of a ute, but in the metal it looks good. Different, but good. On the road, the new BT-50 is a revelation. The 3.2L 5-cylinder I5 20-valve turbocharged, intercooled diesel is all torque and nonchalantly throws the Mazda up hills and down straights without raising an eyebrow. Power is a healthy 147kW, maxi-

mum torque is 470Nm generated at 1750-2500rpm – right where you want it for off roading and towing – and the five-cylinder growl makes the BT-50 far more interesting than a four-pot diesel. The chassis dynamics of the BT-50 and its close cousin the Ford Ranger have drawn much praise from the motoring press (the mechanically identical Ford was named Autocar magazine’s Car of the Year).

sprung rear – comfortable and capable in a way most commercial vehicles are not. A spirited drive up Highway 16, between Helensville and Wellsford, took in a mix of straight and winding sections of road, and some indifferent road surfaces, all of which the BT-50 easily took in its stride. It lopes along in the most effortThe steering is accurate and the chassis, within the limitations of a cart-

less fashion. Off road it was only stopped by its

Don’t you wish you’d kept that Subaru? SUBARU WILL next month celebrate 40 years of its symmetrical all-wheel-drive system with a display at the Geneva International Motor Show. AWD appeared in 1972 on the Leone wagon in Japan. Fuji Heavy Industries, the maker of Subaru, has refined it ever since.

The car did well in rallies such as the Kenyan Safari. Then the company contested World Manufacturer’s Championships with the Impreza in a variety of models in the 1990s. It won driver’s titles for Colin McRae, Richard Burns and Petter Solberg. Subaru has been the most suc-

cessful rallying marque in Australia and New Zealand. Total production of Subaru AWD vehicles reached 11,782,812 at the end of January 31, 2012 making up 56% of Subaru’s total vehicle sales. The AWD system distributes power to all four wheels in a balanced manner.

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road-oriented rubber. Among the many active safety features is hill descent control which will safely ‘walk’ the truck down steep terrain, requiring the driver to do no more than steer. To help it get back up the hill is a diff lock. Tick the automatic gearbox option, as fitted to the Limited test vehicle we drove, and you’ll get the excellent ZF 6-speed automatic. Manual buyers also get six cogs. The higher gearing offers better fuel efficiency when cruising, the claimed average being 9.2L/100km. Prices for the base 4WD double cab start at $51,295 and stop at $61,895 for the leather-lined Limited.

Rural News // February 21, 2012

38 nz ploughing championships

Waikato partners build their own tony h o p kinso n

WHEN A commercially made competition plough doesn’t quite deliver what you want, the best alternative may be to build your own using components from various machines.

This is the path John and Lynda Guy have followed in recent years. John is a ploughing contestant and the chairman of the organising committee for the New Zealand Ploughing Championships to be held at

Cambridge on April 14 and 15. Lynda qualified and ploughed at the New Zealand Championships 14 years ago at Palmerston North. She has not ploughed for some years but main-

tained her interest by becoming a steward, seeing all the rules are followed during a match. One steward checks three ploughmen and she has been a steward at a world championship. Both got interested in

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IS heRe

John Guy and wife Lynda (inset).

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ploughing at the Young Farmers Club (YFC) in Te Awamutu where regular events were held. “I located a plough under a hedge and with a borrowed tractor ploughed my first match in 1974 when it was held on the Waikeria Prison farm,” says John. He has gone on to plough at 17 New Zealand Championships held in both islands. “We really enjoy the sport, have made lots of friends and been to parts of the country we would never have gone to.” John and Lynda married and farmed in the Te Awamutu area milking cows, then spent seven years managing a sheep, beef and arable block. In 1986 they came to Hamilton milking cows and then to their present home at Horsham Downs. He works for a family with several farms in the area, doing repairs and maintenance, checking effluent systems, fencing and building including new dairy sheds.

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John has been chairman of the Waikato Ploughing Association for a number of years. Four years ago the association offered to run this year’s New Zealand Championship. With land located and the association’s stamp of approval gained, they got busy. It’s been hard work, he says, but all is coming together. As well as the ploughing in stubble on the first day and grass on the second, the committee

has had to organise trade sites, a vintage tractor and machinery expo, classic cars and displays by the YFC and the search and rescue organisation. Admission is $10 per adult, children under 12 no charge. Parking is free.

Plough all ‘kosher’ JOHN GUY’S home-made plough has the best features of the four original ploughs he has cannibalised to get his present machine. “I stress it is all kosher and passes all the requirements of the New Zealand Ploughing Organisation.” It has several short lengths of measuring tape permanently attached to the plough so John does not have to use a tape all the time to make the many small adjustments to the plough when competing. He has used plastic mould boards for four years because he believes they give a better finish on the furrow and are flexible in that different soils do not stick. “A lot of ploughmen are changing to plastic for these reasons,” he says.

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Rural News // february 21, 2012

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FOOTWEAR MANUFACTURERS

TAIHAPE FARMER SAVED BY QUADBAR Emailed to me October 2, 2011. Hello Stu, just a note to tell you that I fitted a quadbar to my bike only a month ago (purchased 24-8-11). Last Saturday I managed to reverse (trying to unjamb the gear lever) over a sheer bank into a small creek and landed on my back on the other side of the creek with bike not having flipped but landing on it’s side. There is no question that the quadbar has saved me from a serious injury, but more probably my life! Not only that, no damage to the bike, just a small tear on the sponge rubber. Yesterday I went to see an old mate who is home for a week from Burwood after six months wheelchair bound, and likely to be for the rest of his life, due to a pretty simple roll over. I asked him if he had any sort of roll bar. The answer was, of course, no, but that if he had, he wouldn’t be in a wheelchair today! Stu, I can’t thank you enough for bringing these into the country and even though I complained at the time about the price, when you consider the easing of fitting it, it becomes very reasonable. If you would like to have a yarn about this experience of mine (have some photos), give me a ring. Footnote:Two farmers died in October from crush injuries – neither had a crush protection bar.

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