ANIMAL HEALTH Unlocking the feeding secrets of sheep. PAGE 32
MACHINERY Fourth generation contractors add new precision planter to their fleet. PAGE 37
RURALNEWS
MANAGEMENT Young Southdown stud breeder’s success story.
PAGE 28
TO ALL FARMERS, FOR ALL FARMERS
NOVEMBER 17, 2015: ISSUE 596
www.ruralnews.co.nz
Has AgResearch got it right? PETER BURKE peterb@ruralnews.co.nz
A FORMER director of AgResearch, Dr Jock Allison, remains unconvinced about the validity of the AgResearch strategy that has driven changes in personnel. This is despite assurances by the current chief executive Tom Richardson that despite making 78 scientists and technicians redundant at the CRI research on key projects related to the dairy industry will continue and in many cases increase. AgResearch has cut 78 positions but is planning to employ 27 new staff in different areas. Allison questions why AgResearch is starting to get involved in the food sector when Massey and Otago universities are involved, as is Fonterra which, he says, has 500 staff involved in this work. “They are getting big in Maori agribusiness. Well what’s different about Maori agribusiness? Certainly there’re opportunities on Maori land, but that’s a farm advisor’s role; you don’t need more science for that, so that is a fictitious reason,” Allison claims. “Then they are getting into areas of farm systems and that again is essentially a farm advisor’s job.” Allison says it seems AgResearch
and the science funding people are discovering the farm extension business, which he claims he did years ago. The former AgResearch boss believes there is nowadays very little interaction between scientists, farmers and news media. He says whenever a breakthrough is announced farmers and others seeking more information mostly get put through to ‘head office’, not to the scientist who did the work.
However, Richardson says science relating to dairy food research is growing and there new people will be employed. “As well, there is a lot more focus on farm systems and on forages,” he told Rural News. “But the main area of growth is in dairy food companies looking to extract extra value from their products, including the dairy goat and emerging sheep milk sector.”
Richardson says there is more science the dairy sector wants done, proven by AgResearch’s success in MBIE contestable funding rounds for joint ventures, with the likes of the Miraka dairy company. He says the feedback AgResearch gets from the industry is that it is doing the science that is wanted. But he concedes there is less interest now in some areas because priorities change.
One of the emerging leaders at the recent KPMG forum on leadership in the agribusiness sector was Mark Julian, in charge of Landcorp’s dairy farming operations and responsible for 59 farms that collectively produce 20 million kgMS annually. Julian (34) has a bachelor of applied science degree with a major in agriculture from Massey University, and he did a postgraduate year studying dairy production and farm management. After leaving university he worked as consulting officer for DairyNZ then joined Landcorp six years ago as a business manager in Wellington. In 2013 he was chosen as young business executive of the year. Julian was raised on a dairy farm, at Okato, Taranaki. More on the KPMG leadership report page 3
FONTERRA CUPBOARD BARE PAM TIPA pamelat@ruralnews.co.nz
EVERYBODY STILL believes Fonterra still has high stock levels but it doesn’t, says Fonterra chief executive Theo Spierings. “Everybody thinks of a conspiracy, that we are hiding a lot of milk powder. We don’t,” Spierings told Rural News. “If we come to the back end of the season and we get a long dry spell, who’s going to have milk? Then you will have panic in the market when everybody starts demanding product. The prices will spike up to a level way too high.” Spierings says Fonterra is keen to inform the market properly. “Everyone thinks New Zealand is playing hide and seek – that we have a whole lot of milk. We don’t.” He says the large quantities taken off the GDT were sold through other channels. “We are over 50% contracted and up to 80% contracted and committed for the season. And we’re only three months into the season,” says Spierings. Fonterra knows milk volume is down: production to date is 4-5% down and that is without a significant weather event, which could occur at the end of the season if the predicted El Nino eventuates this summer. • More page 5
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