Rural News 503 2011 by Rural News Group

animal welfare

fonterra shout

The New Zealand Companion Animal Conference crosses into farm territory. page 34

Pictures from the cooperative’s 10-year celebrations and chairman’s reflections. pages 10-11

Rural NEWS

closing date Ryegrass seed growers get the latest on this key management decision.

page 30

to all farmers, for all farmers

november 1, 2011: Issue 503

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TAF concern spreads SU DES H K I SSU N

SHAREHOLDER CONCERNS about Fonterra’s proposed share trading scheme have been confirmed in the North Island. A meeting of about 100 Bay of Plenty farmers last week backed a motion seeking an extraordinary meeting to discuss concerns about TAF (trading among farmers). Rural News attended the meeting, the first on such a scale north of Cook Strait. More are planned. The group’s reservations about TAF governance echo those voiced at meetings in Southland and Ashburton. At their core is the fear that transfer of share title to a custodian will cause a crack in Fonterra’s armour against outside investor control. Although the Bay of Plenty group is made up of mostly small-scale farmers who collectively supply no more than 1% of Fonterra’s milk, their decision is likely to spur farmer groups in Taranaki

to take a similar stand. Meeting organiser Donna Smit was pleased with the turnout. “We were certainly not expecting such good turnout. It goes to show the reservations farmers have on TAF,” she told Rural News. Smit has been told “pocket meetings” are being organised in Taranaki by concerned shareholders. Christchurch lawyer David Stock, who spoke at the meeting, says the motion for a special meeting will be used to “persuade” Fonterra chairman Henry van der Heyden and the board to change TAF. “The motion is just to show the

board farmers have the numbers to ask for a special meeting. We hope the board will understand and a final vote on TAF will be left to all shareholders.” Under the present plan, only a 50% vote by the Fonterra Shareholders Council is required to approve TAF, which was agreed in principle last year by Fonterra farmers. A Fonterra spokesman says board members and management will continue to meet with groups of farmers to discuss their concerns. But he ruled out a debate in the media. “We want to have these discussions face to face and we prefer not to be

debating it through the media.” The spokesman says 100% farmer control and ownership will always be non-negotiable. Yet a lot of water needs to go under the bridge to test that TAF meets the mandate farmers gave it last year, he says. “The co-op is taking a rigorous approach to satisfy itself the design of TAF meets all its objectives and preserves 100% farmer control and ownership. The board’s special due-diligence committee will look at TAF from every angle and we will only proceed with TAF when it is given a clean bill of health.”

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LAST WEEK’S gas leak, which crippled milk and meat plants and forced farmers to dump millions of litres of milk, is raising questions about processors’ contingency plans for such events. Federated Farmers Dairy chairman Willy Leferink wants Fonterra to mitigate the risk of solely relying on the ageing Maui pipeline. “We haven’t identified it as an Achilles heel yet, but I’m sure Fonterra management will look at alternatives. It’s not for me to speak on their behalf but I’m sure they are looking into it,” he told Rural News. The leak has caused one of the biggest disruptions to milk supply the dairy industry has seen. Late last week, Fonterra estimated 50 million litres of milk could not be picked up, forcing farmers to dump it into effluent ponds and on paddocks. When the crisis struck last Tuesday, 15 of Fonterra’s plants between Taupo and Northland were forced to close. Gas supply was restored to 12 plants, including the Kauri site – the only one in Northland – by late Wednesday. But the co-op was told to keep Te Rapa – one of its four ‘super’ sites – and Maungaturoto and Morrinsville, closed. to page 3

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Rural News // november 1, 2011

news 3 issue 503

www.ruralnews.co.nz

What was back-up plan? from page 1

News �� 1-16 World �� 17-18 Agribusiness �� 20-21 Markets �� 22-23 Hound, Edna ��24 Contacts ��24 Opinion �� 24-27 Management ��28-32 Animal Health ��34-37 Machinery and Products �� 39-44 Rural life �� 45-46 Rural Trader ��46-47

“The result is we expect to be able to only collect and process about two thirds of the milk in the area,” said Fonterra general manager milk supply Steve Murphy, on Thursday. “We have advised farmers that while we’re making every effort to collect as much milk as possible, if they still have milk in their vats after 5pm today (last Thursday) they will need to dispose of it on farm.” Suppliers were sent best-practice guidelines to minimise the environmental impact, and Fonterra was working with regional councils. Available gas remains limited and Fonterra is telling farmers to be prepared for the possibility more sites may again need to close. While the crisis affected some meat processing plants in the upper North Island, the impact on dairy was far greater because it erupted in the peak milk season. Fonterra farmers whose milk could not be picked up will be compensated, based on an average of milk collected on days either side of disruptions. South Waikato farmer James Houghton dumped 12,000L after waiting 36

Head Office Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 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 80,327 as at 30.6.2011

Soul destroying: James Houghton, South Waikato, lets 20,000 litres of milk go after 36 hours in the vat.

hours for a tanker. “Sad, he said, but farmers realise it’s out of Fonterra’s control. Farmers know many businesses are suffering because of the gas leak and it’s not only Fonterra. It’s just one of those things.” Rotorua farmer Lachlan McKenzie

dumped 15,000L. Some milk was fed to calves but most of it will end up on paddocks with effluent. “Even the calves are saying they don’t want any more milk!” Murphy says while a lot of milk has been dumped, farmers must be praised

for ensuring none is ending up in waterways. Putting it through effluent ponds dilutes it before it goes to paddocks, which is the right thing to do, he says. “It’s heartbreaking to see farmers work so hard to make a great product and then have to dump it.”

TAF concerns spread from page 1

But Stock says provisions under TAF for a custodian and a unit trust “would exert a lot of pressure on Fonterra”. The custodian would legally own titles to shares against which outside investors would buy units, giving them beneficial rights, mainly dividends. While these investors or unit holders would have no say on governance – the voting right remains with farmer shareholders – they would push for a higher dividend

at the expense of the milk payout. He says retentions from the payout would also cause problems. “If Fonterra retains a significant sum for capital development, there will be hard pressure from unit holders for more of a dividend focus.” Also present at the meeting were Fonterra director candidate Gray Baldwin, former Feds Dairy chairman and Shareholders Council candidate Lachlan McKenzie and former dairy industry leader Doug Leeder.

Whakatane farmer Douglas Bull, lawyer David Stock and organiser Donna Smit at the Fonterra shareholders meeting in Awakeri last week

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Rural News // november 1, 2011

4 news

Big turnout for bio conference SU DES H K I SSU N

THE INAUGURAL national conference on biological farming last week drew 250 people to Rotorua. Organised by the Rotorua Lakes and Lands Trust (RLLT), the two-day conference heard from scientists and farmers how biological farming is lifting soil and water quality in rural areas. Conference coordinator Guna Magesan says the high turnout proves bio farming is taken seriously. Magesan, a senior scientist with RLLT, believes bio farming will revolutionalise sustainable farming in New Zealand. He presented a progress report on the Vallance Project initiated by farmers to improve water quality in Rotorua and Taupo lakes. The project involves conventional and bio farms in Reporoa and Edgecumbe. Twelve drainageflux meters were used on each farm to measure the amount of drainage and N concentrations in soil water. Monitoring will continue for three years. In a progress report to the conference, Magesan says the preliminary results are promising. Nitrate concentrations in soil water collected from biological farms are much lower than those collected from conventional farms. Soil structure is better on biological than conventional farms. The technique may be the answer to nutrient leaching risks faced by the dairy industry, he says. “New Zealand farmers are under pressure and we need solutions. Biological farming is going to revolution-

250 attended the inaugural conference on biological farming.

alise sustainable farming.” A study carried out at Massey University produced similar results. The university in 2001 split its dairy cattle research unit into two farms: organic and conventional. The trial ended in May. Massey’s Alan Thatcher told the conference regular monitoring of ground water showed a substantial decline in nitrate leaching from the organic farm. DairyNZ chairman John Luxton, who opened the conference, noted all farmers in Rotorua catchment areas were involved in projects to reduce nitrate

Another Horizons executive goes HORIZONS REGIONAL Council water quality, biodiversity and environmental manager Alistair Beveridge has quit, saying he believes his role has “slipped in importance”. Beveridge is the second senior manager to have left in as many months, after regulatory and policy manager Greg Carlyon resigned in September. Both Carlyon and Beveridge were involved in the Council’s highly contro-

versial One Plan which seeks to amalgamate a range of plans and policies. The Plan drafted by staff was substantially altered by a team of independent commissioners who heard submissions on the plan. Last week the Council was involved in what’s expected to be the last week of mediation relating to One Plan. Issues not agreed upon are likely to end in the Environment Court.

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leaching. DairyNZ is also involved. “It’s good to see the amount of research going into this,” Luxton said.

The dairy industry must be profitable for its 11,500 farmers but it must also be sustainable, he stressed. “It is

O’Connor relays Labour policy peter bu rke

CHANGES TO monetary policy, laws on the purchase of farms by overseas buyers, and a review of sector groups are key points for farmers in Labour’s election campaign, says its agriculture spokesman. Damien O’Connor told Rural News the proposed changes in monetary policy are designed to consider the welfare of exporters and jobs in the economy. “At present the only target of the governor of the Reserve Bank is the inflation figure. Most other countries have a wider obligation and it’s time New Zealand shifted to a much wider focus in the economy.” He says he hopes this will lead to the lowering of the NZ$ to a more realistic level. On the issue of foreign ownership, it should be a ”privilege not a right” for

overseas companies and individuals to ing use. We have to invest in water capture and its use in irrigation but buy New Zealand farmland. “New Zealanders, the young in par- this is about who pays,” he says. Labour opposes trading water for ticular, should be better able to compete to buy land and go farming. We’re speculative purposes. O’Connor says he plans a review of seeing increasing interest overseas in industry structures sector buying farms. by sector, to ensure the best “That will continue to structure for long-term push up the price of land growth and sustainability beyond the reach of many in primary industries. New Zealanders. This is “A couple of sectors – not in the long term interwool and pip fruit – [are ests of the country.” frustrated]. They’re lookAlso affecting agriing for leadership, and culture – but announced Damian O’Connor Labour has indicated it separately – is water. will review them and work O’Connor says Labour backs water storage, but intends to [there] to change the structures where introduce a charge for water use. The needed.” If Labour were elected, O’Connor amount and nature of the charge will be worked through with interested says, tax credits for R&D would be reintroduced, and more emphasis on parties. “By introducing this charge we skills training would increase the skills want to make sure we are not restrict- of workers in the primary sector.

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Rural News // november 1, 2011

news 5

Payout crash fears dismissed andr ew swa l low

WHILE THE world is worried about a second global financial crisis (GFC 2), this isn’t 2008/9 all over again, says Fonterra, following last week’s 45c/kgMS cut in the milk price forecast. “It’s not like GFC1,” chief financial officer Jonathan Mason told Rural News. Commodity and stock markets going into winter were not as high as they were in 2008, and they’re not likely to fall nearly as far, he believes. “[In 2008] the US stock market lost about 60%; oil crashed from something like $150/barrel to $30; wholemilk powder came down from $5200/t to $1800/t, all in the space of about seven months. “Now we’ve got wholemilk powder at about $3500/t compared to a peak of about $4400/t six months ago. It’s the same with

oil. West Texas has come off from about $100 to $80... commodities are in a much narrower range. There’s some softness there but nothing like we had three years ago. “Now, if tomorrow Italy and Greece default on their debt, then we’d all have to watch and see how it plays out but it doesn’t feel like GFC 1.” Announcing the revised $6.70$6.80/kgMS forecast, comprising $6.30/kgMS plus 40-50c/share, Fonterra Chairman Sir Henry van der Heyden said it reflected a continued softness in commodity prices and a stronger New Zealand dollar. “We aren’t yet seeing the recovery of international dairy prices we initially anticipated and we are also dealing with a much stronger New Zealand dollar. “Higher prices often lead to increased supply into global markets from our global competitors,

as well as reduced demand. We are seeing this and it is impacting prices.” Mason acknowledged the chairman’s currency comment seemed at odds with the New Zealand dollar’s recent slide from US88c in July to US78-80c last week, but the key comparison is with where the dollar was last year, he says. “Last year our effective Forex rate was US72c, so our hedging [this season] is at a stronger rate. There’s quite a headwind.” Van der Heyden says the forecast revision is a reminder to farmers to take a conservative approach with their farm budgets. On the positive side, there’s been a strong start to the season, favourable weather boosting pasture growth and leading to record milk flows in the main dairying regions. Mason said he believed that has already been factored into markets,

and the revised forecast wasn’t an anticipation of further market falls as global dairy buyers take into account New Zealand’s stellar start to the season – gas leak shutdown notwithstanding. Federated Farmers Dairy chairman Willy Leferink said suppliers had been given a warning to expect a downgrade a couple of weeks ago. “While it is a blow for dairy farmers, they have seen this happen before and will be prepared to weather any economic turbulence. As well as being warned by Fonterra, they will have been watching the strong New Zealand dollar and the lower results on the globalDairyTrade auction and will have adjusted their spending accordingly. “The good news is that the longer term outlook for dairy remains strong and Fonterra’s profit forecasts for this year remain safe.”

OCD plays down supplier concerns v i v mi lso m

OPEN COUNTRY Dairy chairman Laurie Margraine is playing down Southland supplier concerns over pricing. Speaking to Rural News last week after meetings in the region, he said, “Over the last five to six years OCD prices have on average bettered the Fonterra milk price.” Southland suppliers have nevertheless been disappointed, the Awarua plant having been pitched as being more cost efficient than Fonterra. “But they have been off the pace all along,” says supplier Dave Yardley. Suppliers also say they’re frustrated with Open Country’s performance compared to other independents. Margraine’s response is that to compare companies you need “a full analysis of performance including sell prices, product mix, currency management and production costs. Different models are all competitive over time.” He says OCD briefs its suppliers in person four times a year, and sends out extra information. “We make sure we communicate in sufficient detail that our suppliers understand our business model.” Southland suppliers started with a three year price guarantee of not less than 25c under the Fonterra cash price to shareholder farmers, a payout of $7.65/kgMS for 2010/11, but that was the last season of the guarantee.

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Leak highlights milk disposal issues THE SCALE of the problems caused by the Maui pipeline leak are unprecedented, Waikato Regional Council spokesman Rob Dragten told Rural News. The leak highlights the problems faced by dairy farmers when their milk cannot be collected or processed, even though dairy companies have plans and advice for dealing with milk on farms when it can’t be collected. Dragten says the best option is to feed it to calves or other animals such as pigs, but there’s a limit to that, so surplus milk is commonly sprayed back on the land.

“To avoid pasture damage it must be diluted by up to one in ten. It can also be disposed of through oxidation ponds.” Normally regional councils have strict rules on the disposal of milk, but Dragten says in a situation such as the gas pipeline break councils have to be understanding and pragmatic. But he says the critical environmental message to farmers is to keep the milk out of waterways. “As raw milk – even diluted milk – gets into water, it starts to break down and sucks the oxygen out of the water. So streams con-

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taminated with milk will quickly be robbed of oxygen and organisms in the streams that rely on oxygen will die.” Provided milk is diluted, and is well spread on a farm, spraying to pasture is a good option because pasture and the soil beneath are good at coping with the high biological oxygen demand (BOD). Rain following disposal shouldn’t be a problem as long as the soil isn’t too wet, says Dragten. Waikato had not had a lot of rain prior to the Maui problem, so that helped. Other ways of dealing with such a crisis have been raised, e.g.

once-a-day milking. But Trevor Foley, a DairyNZ environmental extension specialist, says they do not recommend such a practice in the short term. “Once-a-day milking will depress milk yield once collection resumes and farmers will miss out on the amount of compensation they’d receive because this is normally calculated on production levels before and after the shutdown.” DairyNZ says throughout the crisis its consulting officers have been directing farmers to information. DairyNZ staff also kept in touch with farmers in their areas.

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Rural News // november 1, 2011

6 news Andrea, James, Grace and Nathan collect their Rural News’ 500th edition Suzuki prize from Timaru dealers, Mike and Jo Gould.

Prize goes to ‘Suzuki farm’

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RURAL NEWS’ 500th edition prize draw, run jointly with Suzuki, couldn’t have gone to a better home. Out of the hundreds of entries, Nathan, Andrea, James (3) and Grace (1) Worner’s was pulled out of a hat. The family, from just outside Geraldine, South Canterbury, last month picked up their classic Suzuki TF125 ‘mudbug’ farmbike from local dealer Mike Gould. “Dad had mudbugs before he moved up to the ER range,” Worner told Rural News. The 36-year-old spends half his time flying longhaul for Air New Zealand, the other half working on the family’s 176ha lowland sheep farm. His aim is to take over the farm from his father in a couple of years. “I spend half my time overseas, the other half I’m a farm labourer. We’re flat out tailing at the moment.” As it turns out, the farm already has a couple of

Suzuki ATVs and another two wheeler. “So she’s a Suzuki farm alright!” And judging by the way young James leapt on the mudbug at the presentation, that looks like carrying on with the fifth generation of the family on the property. Gould says the mudbug’s rugged design, dating from the

late 1970s, is as popular as ever on farms in the district. “It’s the number one farm two-wheeler.” A key feature is the Japanese build quality. “Some of the opposition models aren’t built in Japan any longer,” he points out. A popular innovation in more recent models is a clutch-lock lever which

allows riders to leave the bike in gear while they hop off to open a gate. “It saves having to find neutral all the time.” Large carriers, robust lever guards, and dual side stands are other key features. “It’s got quite a few New Zealand-driven design enhancements on it these days.”

Eight stand for Alliance board ALLIANCE GROUP has received eight nominations for two board positions, an unusually high but not unprecedented number, says company secretary Michael Horn. “It’s the fact there’s a director standing down, creating an opportunity for someone new to get on the board, rather than anything going on,” he told Rural News. The two directors retiring by rotation are Owen Buckingham, Te

Anau, and John Lindsay, Dipton. Only Lindsay is standing for re-election. The other candidates are Neil Robert Campbell, Fairlie; Jared Guy Collie, Dipton; Douglas William Fraser, Riverton; Neil Leslie Gardyne, Gore; Jeffrey James Grant, Gore; John Andrew Lindsay, Dipton; Allan William Marshall, Tokanui; and Hilary Dawn Sangster, Ranfurly. The election is by postal ballot. Papers

go out with the annual report on November 30; voting closes December 14. Results will be announced at Alliance’s annual meeting, December 16, Invercargill. Nominations for Silver Fern Farms directorships close this week. Both directors retiring by rotation, Rob Hewitt and Herstall Ullrich, are seeking re-election. Its annual meeting is December 5, in Timaru.

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news 7

Feds’ pragmatic election manifesto Federated Farmers launches its election manifesto tomorrow [November 2]. Peter Burke asked Federation president Bruce Wills what’s in it. WATER, BROADBAND and science are the three key areas Federated Farmers want the political parties to deliver on if they are in government after the November election. The federation has just released it’s 62-page ‘elec-

transport, immigration workplace safety and economic and financial matters. It also wants greater recognition of the value of bees to agriculture. It’s also the first major policy statement by the newly elected board of

rest of the world. “We know 96% of all water that falls on the country runs out to sea unused by human or animal and we think this is an opportunity missed. So the issue focus for us is principally about storage

Federated Farmers president Bruce Wills: “We know 96% of all water that falls on the country runs out to sea unused by human or animal and we think this is an opportunity missed.”

tion manifesto’ setting out the key policy initiatives it believes the politicians need to address to make farming profitable and sustainable. The document is comprehensive and covers a huge range of areas the federation has an interest in. These include ETS, NAIT, local government reform, compliance costs,

the federation. President Bruce Wills says the ‘big three’ as he calls them (water, broadband and science) will revolutionise the way New Zealand farms and increase the capacity for farmers to succeed. Wills says water is New Zealand’s liquid gold, set to differentiate New Zealand agriculture from the

and it’ not just for farmers. It’s also about offering recreational opportunities with those storage facilities. It’s about enhancing current minimum flows when rivers get low in summer. We are conscious water is not just a farmer issue; it’s a community issue and we know that for water to be used for farming we have got to take

communities with us.” Wills concedes it’s not an easy matter to solve but they want to work with all stakeholders to come up with a sensible solution. The lack of high-speed broadband is a ‘biggie’ and a handbrake on rural businesses. Wills says he started with dial-up, moved to satellite and is now finally on mobile wireless. “For somebody who sits on a computer a fair bit, with a lot of documents going backwards and forwards, I probably couldn’t do the job I’m doing today without the upgrade.” And he goes further: while broadband is vital for farm businesses, he says without it, rural areas will not be able to attract young people to work on farms “Young people wherever they are want to spend time on a computer at night on You-tube or whatever. We have to offer them the same opportunities they would get in the city.” Research and science also are vital. Wills says the federation wants R&D funding increased from the current 1.2% of GDP to 3%. “This is one of our strong calls,” he says. Outside the big three, Wills says the issues haven’t changed much in three to six years. Noticeably different, though, is the tenor of the manifesto: it’s more pragmatic. “For example, we

realise NAIT is going to happen and we’ve made our case and given the process a lot of scrutiny. We feel comfortable the NAIT we have today is better than the one we saw four or five years ago.” Now the focus is on how the federation can help its members deal with the process. On the ETS, Wills describes as “economic

suicide” Labour’s policy of bringing this in by 2013. Farmers are wound up about it and don’t understand the economics of Labour’s proposals, he says. Overall Wills sees the manifesto showing a willingness by the federation to work more closely with the community, including local authorities – especially on environmental

issues. It’s about balance. “In some cases in the past we have spent a lot of time throwing rocks over the parapet at each other. That just eats up resources and results in expensive, drawn-out legal processes. In the end that process doesn’t result in much progress being made.” • Feds’ election manifesto is available on www.fedfarm. org.nz from November 2.

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Index 52

Contact Information Back Cover

Rural News // november 1, 2011

8 news

A&P’s our ‘culture and history’ vi vi e nne hald e n e

THE SEASON for A&P shows is in full swing; are they drawing the large crowds they once attracted? Royal Agricul-

tural Society president Bruce Orr says the underlying formula of country and town coming together hasn’t changed and the interest this generates is far from waning.

“It still provides competition, friendly rivalry in livestock and especially equestrian events which are the biggest part of most shows. It wouldn’t matter whether it was

Invercargill or Whangarei. “There are 95 A&P shows throughout New Zealand and it gives country towns the opportunity for the community to have a day out. Along with

Mary Kippenberger of Central Hawkes Bay, takes time out to relax with her grandchildren at Hawkes Bay A&P.

excellence in agriculture, it’s part of our culture and history.” The first A&P show was in Auckland in 1843. “Although things have changed a bit in that there are other forms of entertainment, the shows continue to attract large crowds. In the bigger towns we notice how much interest there is in the farm yards, particularly from town children who, for example, have no comprehension about animals or where their milk comes from.” Shows are to educate as well as entertain. “Our target market is urban people – getting a lot of them along. “It’s amazing to see the delight on those kids’ faces when they have the opportunity to be exposed to and handle animals.” Some things haven’t changed however. “The status attached to having a champion bull or grand

s R E m R A f L A RE E timE R o m E hAv o k o m s foR

champion dairy cow or horse is reward in itself,” says Orr. “As a marketing ploy, to have a grand champion at a show in November and sell that ram in January is real kudos.” A&P shows in the Canterbury district have this year had record attendances – much-needed relief from earthquake woes. “It gave people an opportunity to get out of Christchurch. I went to the Oxford show in March and it was the biggest crowd and town participation they’ve had in a decade.” Orr predicts a great turnout to the Canterbury A&P Show next week (November 9-11). “It’s the biggest week in Canterbury: the A&P show, which is the largest event, and the racing and trotting events; a public holiday on Friday and the galloping cup on Saturday.”

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Rural News // november 1, 2011

news 9

Wool Co extends capital raising

Feedback on shearing scheme sought PETER BUR K E

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MAIL DELAYS are being blamed for an extension of Wool Co’s $40m capital raising deadline. The Wool Equities – Ocean Partners joint venture offer was to close October 28 but Wool Equities chair Cliff Heath told Rural News that proposal papers and meeting invites arrived too late for many farmers to respond. “The post has been appalling, particularly in the North Island. I spoke to one farmer at New Plymouth who received his two weeks and a day after we posted them. They were receiving notices for meetings that had already happened.” The haste of Wool Co’s raising is necessary to try to make an offer for the Plum Duff / Woolpak Holdings 64% stake in WSI before the High Court rules on whether Cavalier’s bid may proceed or not, says Heath. By buying Wool Services Inter-

national’s scour business Wool Co would prevent Cavalier cornering the market in a monopoly position, and create a grower controlled com-

Cliff Heath

pany that could make use of $300m of tax losses held by Wool Equities. Heath says Wool Co doesn’t intend to try to outbid Cavalier, but

by coming up with the cash first Wool Co would be in a favourable negotiating position with the Hubbard investments receiver selling the Plum Duff and Woolpak Holding stake. The deadline for the capital raise, which seeks a minimum investment of $9500, is now December 9th. Another meeting is being held in Stratford today (November 1). “And we may well go back to the East Coast of the North Island.” Heath says as of late last week Wool Co had received a lot of support in terms of ‘yes, I think it’s a great idea’ but it remained to be seen if that would be backed up financially. “If everybody that’s said they’ll support us writes a cheque then we’re reasonably confident.” Cheques will only be cashed if the raising is successful, and not before February. “But if we know we’ve got the money we’re in a strong negotiating position.”

A PROPOSED accreditation scheme for shearing contractors, ShearNZ, is being put out to consultation nationally at meetings during the next few weeks. The new venture is being funded from money left over from the days of the wool levy. New Zealand Shearing Contractors has developed the scheme, seen as an opportunity to recognise contractors for their work and to benefit their farmer clients and the whole wool industry. Peter Taylor, a Palmerston North-based contractor/consultant instrumental in the development of ShearNZ, says it’s like

any quality assurance or certification scheme, such as the one for master builders. The accreditation would apply to a shearing contracting company, not to an individual shearer. Taylor says the major objective is to add value for the farmer by offering a high level of service; by improving communication between farmers, the wider wool industry and wool harvesters; by maximising returns from the wool clip; and by highlighting the professional standards of businesses who attain accreditation. Taylor concedes accreditation will not guarantee contractors a price premium. “But there is a strong belief

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it could help the industry and ensure the customers understand what we’re doing. Potentially in the long term that could produce a price benefit or simply ensure better access to markets. For farmers, the benefits are at least that we can ensure people accredited will offer professional services; they’ll be experienced and have the necessary training for wool.” Taylor says with farmers, a contractor under the new scheme would discuss before shearing the best way to deal with a particular clip. “We want to prepare the wool for the appropriate needs of the day.” Farmers and people in the wool trade are welcome at the meetings.

Rural News // november 1, 2011

10 news

Celebrating 10 years of co-op 1

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1. Jason Gunn hands Theo Speirings his ‘welcome present’ – a pair of Redbands. Speirings and chairman Sir Henry van der Heyden greeted all attendees on a live link from Auckland to all events. 2. Bands were just one element of the entertainment Fonterra lined up at the seven venues, from Invercargill to Whangarei, to celebrate its 10th anniversary. 3. Mmm... Benjamin Kilgour reaches the bottom of his pot of

Fresh n Fruity, Ashburton. 4. Abigail and dad Joseph Robinson check out some calves at the Palmerston North shout. 5. Shareholders Don Harvey (left), Ripper Campbell and Rob Poole (far right) serve some of the 60,000 starters prepared on the day. 6. Party-goers Rosalie Kerr-Quin and Sharn Cameron sign the Fonterra Shout banner in Ashburton.

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Rural News // november 1, 2011

news 11

Fonterra’s best still to come With Fonterra celebrating its 10th anniversary last week, Rural News asked chairman Henry van der Heyden, a board member since the outset, to reflect on where the co-op has come from, and where it’s going. NOW THAT our collective heartbeat has returned to normal, some of us are sheepishly wondering how we could have ever doubted our boys in black. That thought crossed my mind on Labour Day when I turned out with thousands of our shareholders and New Zealanders to cap off a great

world needed us to push volumes wherever we could, locking in long contracts so we could be sure of a sale. It was all about having production assets tied to making thousands of product specifications. But the old world went the way of amateur test rugby. Trade barriers tumbled, there were massive

But that doesn’t mean our earning capacity should be tied to local production capacity. By sourc-

weekend by celebrating Fonterra’s 10th anniversary. What a day, especially coming on top of our best year ever for exports and returns. Like the AB’s, Fonterra certainly hit its straps this year. But with a good chunk of the country’s economy depending on us, here’s a fair question: have we peaked? Absolutely not. Ten years of hard graft have taken us from a rumpty alliance to a single tight team. But as the old saying goes: you’ve always got to think ahead to the next game. That game is a forecast doubling of demand for food by 2050 and we need to be in there boots and all. We will be, because we’ve spent the last decade getting fit to compete at a global level. It’s been a big transformation. Ten years ago Fonterra was more aligned to an old, tariff-laden global market than it was to an emerging free trade environment. The old

shifts in demand and a real need for game-changing behaviour. We did it. Take sales: GlobalDairyTrade broke the mould in 2008, making demand and pricing transparent for the first time. Today we sell almost a quarter of our production through this single channel. Sales to date exceed $US3.5 billion. Take food service: we’ve moved this from a minor category to a $1 billion business. Formulated foods is another $1 billion category built by partnering with infant formula manufacturers. Take consumer products: we used to have a massive brand portfolio, thinking the more the merrier. Today that is stripped back to a group of brand leaders, delivering $6.9 billion in 2011, up 13 per cent thanks to that lean, profitable portfolio. Take production: New Zealand always will be our core source of milk.

ing milk globally, including from our own farms in China and Latin America, we have added 6.5 billion litres of milk to New Zealand production, expanding sales opportunities and revenues. These days, it’s all about having an asset base, product mix and customer relationships far more

closely aligned to market opportunities and the highest stream returns. We hit our straps this year. But while we’ve come a long way, it’s only half time in a long game. We’re in good shape and we’ve still got to work hard to take our fans along with us to build something we can all be proud of.

Henry van der Heyden

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Rural News // november 1, 2011

12 News

DNA barcoding boosts biosecurity BA RBA RA GI LLH A M

BIOSECURITY STAFF could soon have the tools to simply scan the DNA of organic material arriving at our borders to identify any threat. Though development of a handheld ‘barcoder’ is yet to happen, DNA barcoding has been used in New Zealand since 2003, says Karen Armstrong, theme leader for diagnostics in the Better Border Biosecurity, or so-called B3 group, and a senior researcher at Lincoln University’s bio-protection research centre. “DNA barcoding

enables us to distinguish between species that look identical but are not,” she told Rural News. “The oriental fruit fly is an example: originally it was thought there were four species; we now know there are over 80. “It is possible to have two or more insects that may look identical but only one may be an agricultural pest while the other is benign. “Incorrect identification could endanger food supplies and cause a significant economic impact.” Armstrong works closely with a Canadian

group of scientists who, with others around the world, contribute to a ‘Barcode of Life Database’. The database is held in Canada with four mirror sites elsewhere. The abundance of data in this library is a valuable resource for biosecurity, helping identify exotic insect pests such as fruit flies, tussock moths and the yellow peach moth, all a threat to New Zealand. Armstrong says without doubt barcoding is improving the chances of finding new organisms, even those that may not previously have been identified as high risk to

New Zealand. This has helped to reduce the risk of unwanted incursion at our border or threats to our agricultural and horticultural sectors. The barcoding technique sequences base pairs in a gene called cytochrome oxidase I (COI). The gene is found in mitochondrial DNA in all species and the sequencing draws on traditional taxonomic identification methods to produce a sequence ‘similarity’ tree. This approach makes it possible to gather individual members of a speKaren Armstrong at work.

cies into a group distinct from that of other species groups. It makes it possible to identify an unknown specimen by determining which group its COI DNA is associated with, removing the time consuming need to validate a molecu-

lar identification method for every new species incursion. In North America, the growing database is used primarily for biodiversity and taxonomic cataloguing but the approach of Armstrong and her colleagues – to use it as a

practical tool for rapid identification of potentially invasive insect species – is unique. MAF has adopted the methodology for many insect pests, some fungi, and is examining its potential in other animal groups such as fish.

Join forces to bid for ‘connectivity’ COMMUNITIES THAT won’t get mobile – and hence internet – connection under the Rural Broadband Initiative, could still get coverage with a scheme offered by Vodafone, subject to certain criteria. It says it will provide masts and service for at least two extra areas/year, selected from applications received before December 15. “The scheme is designed to support small communities and those who live in rural isolation with no cellphone coverage,” says Vodafone head of community and government relations, Roger Ellis. Application criteria include a letter of support from local MP(s), a supporting petition signed by residents, and a landowner willing to provide a mast site and support an RMA consent application for the mast. Whether the landowner seeks payment for the site would be taken into consideration in the application process. “Ordinarily these types of sites would not be commercially viable, so

anything communities are willing to assist with will make their project more likely to be selected for a site build,” a spokesman told Rural News. Normal rates for the services provided would apply once the mast is in operation. Communities will be invited to apply during a two month period each year and, following a consultation and liaison process, it is planned that a minimum of two masts will be built each year. “There are no criteria for the size of the community – minimum or maximum. We want to hear from anyone who thinks they could benefit.” Transmission frequency will be 900MHz which provides the broadest reach from a single cell site, says Vodafone. Successful applicants will be selected by early January and the resulting cell sites planned within a year after that. RBI roll-out coverage can be checked online at http://www.vodafone.co.nz/ about/media-centre/rural-broadbandinitiative/coverage

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Rural News // november 1, 2011

news 13

Concerns over co-ops' air arms p e te r bu rk e

A LEADING private ag aviation operator, Hallet Griffin, of Palmerston North, says he wants the two big fertiliser companies to liaise better with smaller companies such as his in the coming months. He says given the expected demand for fertiliser spreading in the next few months it’s important the whole industry works together to get the job done. “There’s got to be recognition by the directors of these two fertiliser co-ops (Ravensdown and Ballance) of the important role private enterprise still plays in New Zealand. “They must also understand how their shareholders depend on us because even if we disappeared off the scene, the two co-ops haven’t got the equipment to apply the amount of fertiliser that’s going to go on in the

next 12 months. We need to know as smaller operators how we will fit into the scheme of things.” Griffin, 46 years an agricultural flyer (38,300 hours), says the major concern of the private operators is their role with the bigger companies. The two big co-ops apply about two thirds of the fertiliser, leaving a substantial amount to be applied by the smaller private operators. The farmers who use Griffin and other small operators are for the most part shareholders in Ravensdown or Ballance, who own their own topdressing companies. Griffin says in many ways there is a good relationship with the big companies. “For example I run a store for urea at my base at Kairanga and also at Opiki for Ravensdown. That’s a connection we’ve had for 25 years. But unfortunately there is little cooperation over the operational side

of things – the spreading of the fertiliser.” Only in the last year has business picked up for operators such as Hallet Griffin. The higher prices for lamb have seen hill country farmers resume applying superphosphate. He says more of his work is now done for the dairy industry. “This is in the form of nitrogen being applied especially when wet ground conditions make it difficult for trucks. We are also doing a lot of aerial spraying these days because the requirements for this are stringent and it requires specialist applicators such as ourselves to do the work.” Griffin says the downturn in fertiliser use in the past has seen a number of smaller operators sell out to the larger companies or just disappear. But with the projected upturn in business new ag pilots are joining the industry.

Concerned operator, Hallet Griffin.

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where they need it – farmers are demanding more than just expertise in fertiliser management these days.” Stafford says the TEOs have expertise in general agronomy, soil science, fertiliser and nutrient management, environmental management and best-practice systems. The two new team members are Jim Risk, in the lower South Island, and Michael Keaney in the upper South Island. Risk had 10 years with Environment Southland, mostly as a land sustainability officer, before the move to Ballance, while Keaney has been with Ballance since 2008 as a technical sales representative. Both have completed advanced sustainable nutrient management courses at Massey University.

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Rural News // november 1, 2011

14 news

Some farmers still need to step up p e te r bu rk e

THERE’S NO question dairy farmers need to step up their compliance record standards on effluent management on farms throughout New Zealand,

says the Minister for the Environment. Nick Smith says there are still some tardy farmers in the industry who are failing to recognise the community’s concern about water quality and

they need to step up to their responsibilities. His comments follow those of the chairman of the Northland Regional Council, Craig Brown, last week in Dairy News. He criticised “arrogant dairy

farmers in his region who continue to flout rules on effluent disposal”. One third of dairy farmers in his region are ‘significantly non compliant’ over effluent disposal, Brown says. “I’ve looked at these

Keeping it clean: some dairy farms still need to raise their game, says Environment Minister Nick Smith (below)

figures and they are simply not good enough. We have some high profile prosecutions but we as a council are getting constant criticism from the public about the repeat offending by too many dairy farmers. Maybe the penalties aren’t big enough,” he says. Smith says he doesn’t know whether dairy farmers in Northland are any worse than in other parts of the country, but he says there’s a growing community concern about the deterioration of waterways, particularly in lowland catchments. “I am encouraged by the attitude of Federated Farmers and of Fonterra in addressing this problem, but it’s going to require an ongoing effort. I am encouraging regional councils to prosecute farmers for deliberate and blatant disregard for rules. “I note a doubling of the number of prosecutions. This doesn’t reflect a greater level of non compliance, but rather that councils are taking a firm approach with farmers disregarding the environment rules.” Smith says in the last three years fines for breaching consents for

effluent disposal have gone from $12,000 to $35,000 – a signal that the tolerance of non compliance is getting pretty thin. “It’s hugely important strategically for the dairy industry that they get on top of this issue,” he says. Smith sees Fonterra taking the issue seriously. “I had a constructive discussion with their new chief executive. “He, like his predecessor, recognises the environmental and sustainability issues are among the biggest challenges the industry faces. I am satisfied Fonterra recognises they need to improve water management. “They themselves are getting tougher on their farmer suppliers. “You’ll always get your stragglers and they need to get the message. The issue is still not resolved, but it is getting better.”

Cleaner Cantabs REPORTS FROM other regions suggest 'significant non compliance' is down. In Canterbury it has fallen to 9.7%, slightly up on last year, but hugely better than two years ago when it was 19%. Environment Canterbury says 65% of dairy farms in the region fully comply with their consents - up 6% on the previous year. In Waikato initial reports suggest a low level of 'significant non compliance'. The Waikato Regional Council has been flying over dairy farms in the region and says the figure is 10% - down 2% on last year and 27% on the previous season.

Rural News // november 1, 2011

news 15

Enviro regs will have impact ma ry witsey

TIGHTER ENVIRONMENTAL regulations over the next decade will impact dairy farming, DairyNZ chief executive Tim Mackle says. “We’re entering a phase, in the next five to ten years, that we haven’t seen in dairying before,” he told a recent Southland demonstration farm field day. “We have to be able to justify how we can continue to grow our industry and do it sustainably. “We will have to put a lot of effort into showing we can capture the opportunities, and that the country can benefit more from the dairy industry, but without impacting on the environment. “There’re a lot of opportunities still there, but we have to address the challenges as well, mainly in sustainability and productivity.” DairyNZ is considering more research in the South Island focusing on sustainable milk production and growth, he says. “Research is potentially a gap where we need to do more.” In Southland, wintering stock is a key issue, with the province’s regional council putting pressure on dairy farmers to improve performance. While DairyNZ is already conducting research

through its southern wintering system initiative, more specific science is needed, says Mackle. “We need to start proving cause and effect, but before we start modifying systems we need some more concrete answers.” Engaging constructively with authorities is also crucial, with the DairyNZ board set to meet with Environment Southland officials for talks at the end of November. “We do need some action now and effluent is an Achilles’ heel which thankfully we are tackling, but when it comes to nutrient loading and footprint there’s a lot more we can do now through management.” This includes nutrient-use efficiency, riparian planting near waterways and using wetlands. Water quality issues at Waituna Lagoon are also a key focus, Mackle stresses, but knee-jerk reactions won’t work. “It’s in the best interests of the public to get this right. They don’t want to be forking out ratepayers’ money until we know what’s going on. We’re saying we want action and we want to do the right thing, but we want to make sure it’s the right solution to the problem.” And while there is a degree of uncertainty for the dairy sector, he’s keen to reinforce DairyNZ’s

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“We need to start proving cause and effect, but before we start modifying systems we need some more concrete answers.” support for southern farmers. “Farmers are feeling bruised and battered,

whether from the media or from the public, and I think it’s sad,” he told Rural News.

“Farmers need to know their organisation is right behind them and we want to support them. That’s not to say we don’t have a role in bringing about change where it’s needed because that’s for the greater good of farmers.” • More from the Southland Demonstration Farm Focus Day pages 36-37

DairyNZ chief executive Tim Mackle at a recent Southland field day.

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Rural News // november 1, 2011

16 news

Good start for ag aviation scheme p e te r bu rk e

AN AGRICULTURAL aviation accreditation system is off to a flying start, judging by the response at a series of recent meetings. The meetings were part of a wider project on environmental best practice in aviation but the Maylaunched accreditation

scheme Aircare was an important component. “One purpose of the meetings was to see if stakeholders, such as councils, could see the benefits of Aircare delivering best practice in environmental standards for the application of fertilisers, sprays or other materials,” says Aircare project

John Sinclair

team member John Sinclair. Sinclair says the longterm goal is to get councils to include it in their planning documents and therefore set high standards. “We also want operators to be Aircare accredited so they can undertake work for major stakehold-

ers such as Landcorp and DOC who have already stipulated that they will not use an operator unless they are accredited.” Aircare is an umbrella accreditation system which incorporates flight safety rules. It aims to ensure farmers and others who hire aviation operators get a guaranteed level

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of quality service. The focus of the consultation was on the environmental management component. About 250 people attended meetings. Half of those attending had been pilots or aviation operators, 32% were stakeholders such as fertiliser companies, Department of Conservation, Federated Farmers, Horticulture NZ forestry companies and Animal Health Boards. The remaining 18% were regional and local councils. Sinclair says pilots gave positive feedback. Issues raised included ‘expectations’ of some lifestylers; public perception that the country is ‘over-sprayed’; and problems with inadequate airstrips and wires across valleys.

Operators are also concerned at the wide range of products and different application regimes. He says there’s a need for farmers to be better educated about the physical quality of fertiliser. “They often buy the cheapest product and don’t realise that in the end the cost is greater because of higher application costs and loss of fertiliser across the boundary.” Another issue to emerge was variation in council rules on matters such as spray buffer zones, waterways and sensitive crops. Sinclair says operators believe better education of council staff, farmers and university lecturers is necessary.

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A FASTER, more accurate test for virulent strain Psa has been developed by Hill Laboratories and Plant & Food Research. Hill Laboratories says the test is based on DNA sequencing the causal bacteria Pseudomonas syringae pv. Actinidae “The test is far more specific than the current methods,” says Hill Laboratories’ special projects manager Terry Braggins. “We are able to positively identify Psa-V with a single test, which means a faster and cheaper test for growers.” Plant & Food Research Psa response manager Stuart Kay says funding from the Ministry of Science and Innovation and the Better Border Biosecurity programme allowed it to complete the DNA sequencing of 16 Psa isolates from around the world – including Psa-V. “Our sequence data is readily available to all Psa researchers and the work is ongoing. We are now continuing to sequence a further 24 isolates to give all researchers the best possible genetic picture of the bacteria,” says Kay. The new Psa test will be available immediately to kiwifruit orchardists through Hill Laboratories in Hamilton.

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FIRST IT was healing honey, now residual herbicides. What will be the next innovation developed from manuka? Research recently published by the Weed Science Society of America found oil distilled from the tree Leptospermum scoparium (manuka) enhances post-emergent activity of other organic burn-down herbicides such as lemongrass oil and, unusually for organic herbicides, it has a residual pre-emergent effect. “The systemic activity of manuka oil addresses many of the current limitations associated with natural herbicides,” says the paper abstract. “Additionally, its soil persistence opens up a multitude of new possibilities for the use of manuka oil as a tool for weed management and may be a potential bridge between traditional and organic agriculture.”

Rural News // november 1, 2011

world 17

United in call for supermarket regs BRITISH FARMERS’ union leader Peter Kendall is encouraging farming organisations in the EU and North America to campaign for tough and effective measures to deter and punish the abuse of supermarket power. Speaking last week at the 35th annual North American and EU Agricultural Conference in Warsaw, Poland, Kendall

said supermarket power was an international problem and therefore required an international approach. “Farmers are the poor relations of the food chain, not just in Britain, but across the developed world. That has to change. “If farmers and growers are to have the incentive and the resources to invest in achieving the step

“These are achievable objectives for which we shall continue to campaign and to lobby” change in farm productivity the world needs, we must ensure supply chains deliver a fair share of what consumers pay for food to primary producers.” Kendall co-chaired a session on how the food chain can provide a better

gally exploit their dominant position. “We are probably ahead of the rest of Europe in prescribing the medicine to deal with retailer abuse, but that is only because we are also ahead of the rest of Europe in the extent of the problem we’re facing. “Even with the progress made, and the prospect of legislation in the reasonably near future,

income for farmers, and described the long struggle British farmers have been engaged in to secure a legally binding code of practice, policed by an adjudicator with statutory powers, to deter and punish retailers who ille-

there is still a lot of work to do to ensure the watchdog we have been promised has real teeth, and isn’t just a flea-bitten old mongrel, that wags its tail every time it’s patted on the head by one of the big four supermarkets. “That means allowing third parties, such as farming organisations, to make complaints on their members’ behalf, so as to

Farm-time for bureaucrats A L A N H ARM A N

A BRITISH parliamentary committee says public servants should be sent to work on farms so they can experience how unnecessary red tape can stunt production. The environment, food and rural affairs committee’s comments follow an independent review of regulations made by the Department of Environment, Food and Rural Affairs. “Defra should consider whether hands-on experience with farming businesses by relevant staff would improve policy-making and how this could be delivered, including the cost implications for Defra and participating businesses,” says the committee.

Chairwoman Anne McIntosh says the review clearly sets out the steps required to rationalise Defra’s culture of over-regulation. Prompt implementation offers opportunity to transform the department’s approach and McIntosh says the committee awaits a timetable of action to cut the regulations that threaten to stifle English farm business. Defra estimates direct cost of regulation exceeds NZ$9.9 billion (£5 billion) a year. Half the regulations are to meet EU requirements. “It is essential that Defra engages earlier and more proactively in Europe to reduce the cost burden imposed by EU regulations in future,”

the committee says. It also wants MPs to be given greater powers to scrutinise legislation establishing new regulations. “Defra needs a cultural change in its approach to regulation and enforcement,” McIntosh says. “It needs to develop a risk-based approach to inspection that will target those farms that demonstrate the greatest risk of non-compliance with farm regulation... “We also support the principle of using ‘earned recognition’ – through farm membership of independent assurance schemes – to reduce the number of inspections and the costs they impose on farmers and government.”

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18 world Globalisation must go hand in hand with rural development, said UN FAO World Food Day speakers.

Food day focus on volatility FOOD PRICES – from crisis to stability. That was the theme of the United Nations Food and Agriculture Organisation’s World Food Day celebrated last

month in at least 150 countries. “The background to the devastating impact of soaring and volatile food prices on the livelihoods

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of the poor is 20 years of under-investment in agriculture and neglect of the sector,” said FAO directorgeneral Jacques Diouf.

people today and 9 billion people by 2050, we must invest in girls and women, who are the key to food security.... Empower-

“The world has the knowledge and financial means needed to ensure food security for all. Now is the time to make it happen.” $80 billion of extra investment is needed annually in agriculture and related activities to ensure food supplies for the world in 2050. Greater investment is the key to mitigating food price fluctuations and building poor peoples’ and nations’ resilience, he says. The crisis in the Horn of Africa shows short and long-term responses are needed, along with predictable financial resources to tackle root causes of famine and food insecurity. “The world has the knowledge and financial means needed to ensure food security for all, and thus a more stable world. Now is the time to make it happen.” Michelle Bachelet, former president of the Republic of Chile and current UN under-secretarygeneral and executive director, UN Women, says a major cause of food insecurity is “the poverty and discrimination faced by women and girls, including women farmers.” “Since women are on the front lines of food security, we need to put their needs and rights at the forefront of trade and agricultural policies and investments to move from crisis to stability. “If the world is to meet the challenge of feeding

ing women and girls is the key to progress in development, food security and improved nutrition.” African Union chair, and president of the Republic of Equatorial Guinea, Obiang Nguema Mbasogo, told a UN ceremony to mark World Food Day that Africa and sub-Saharan Africa in particular bears the brunt of the food price crisis. Improving productivity and competitiveness of small farmers, investment in agriculture and policies related to land tenure are the priorities for such regions, he says. Italian Foreign Minister Franco Frattini says ridding the world of hunger requires globalisation that reflects the concepts of “sharing, generosity and cooperation”. “A hungry man is never a free man, and often he is a dangerous man.” Frattini’s colleague, Agriculture Minister Francesco Saverio Romano, says the responsibility of restoring agriculture and food security to the centre of the international political agenda lies with the world’s rich, industrialised countries. “Globalisation must go hand-in-hand with rural development directed, in all parts of the world, to the well-being of populations.”

Global reports A HIGH-level panel of experts on food security and nutrition operating under the auspices of the UN Committee on World Food Security (CFS) has released two new reports: Price Volatility and Food Security and Land Tenure and International Investments in Agriculture. See http://www.fao.org/cfs/cfshlpe/en/ The CFS is the foremost international and intergovernmental platform for debate and follow up of policies and coordination of action related to world food security.

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Rural News // november 1, 2011

20 Agribusiness

Farm debt still an issue? SUE E DMO N DS

FARM DEBT is creeping back up and while it may be just a seasonal increase, there’s concern among analysts that some in the sector remain over-exposed to resurgent global financial risks. DairyNZ strategy and investment leader Mark Paine recently returned from Europe. “If things there do not come right, it will affect our finance and export markets, and it could

cause many of our heavily indebted farmers to walk off their land,” he warns. Volatile returns and financial instability in the Euro zone put into sharp relief the possible repercussions for New Zealand farming if the situation isn’t resolved, he believes. And it’s not just the Euro problem. Paine’s been told adjustments to Europe’s Common Agricultural Policy could see up to 40% of French farmers quit, leading to huge amalgamations to achieve

efficiencies. Eastern European agriculture is also reorganising and poised to become more productive and competitive. Changes in Asia are another area we need to watch. “With our focus on exports to Asia, we need to realise those countries are looking to become more self-sufficient in food, particularly China, which is buying up huge tracts of land in Africa. And they aren’t just buying the land but taking over the whole

Senior Farm Manager Farm Managers (2) Kia hiwa rá! Ngái Tahu Property was established in 1994 and is responsible for the Iwi’s property activities as a subsidiary of Ngái Tahu Holdings Limited. Ngái Tahu Property is a diversified property group, with investment, development and rural assets under management on behalf of the tribe.

Mark Paine

value chain, focused on feeding their own people.” Dairy NZ economist Matthew Newman notes increasing production is effectively decreasing debt/kgMS, as between 2009 and 2010 milksolids production increased 3.2% to 1.438b, while dairy debt climbed 2.8%. “Debt levels at June 2009 were $20.53/kgMS, easing to $20.44 at June 2010. There had been little change in dairy borrowings at June this year and, assuming milk solids production has risen to

1.5 billion, the debt levels would have reduced to about $19.50/kgMS, or about $1 less.” Reserve Bank figures show a big swing in at least dairy borrowing from fixed to floating loans; about $5 billion has moved to floating. If interest rates begin to move up this could markedly affect farm cashflows. Newman says farmers must watch their cashflows carefully, bearing in mind interest rates could rise and milk prices fall. “At about $20/kgMS [of debt] we would expect interest payments of about $1.40/kgMS based on an interest rate of 7%. For every one percentage point increase in interest rate we would expect an extra $0.20 of interest payments.” While many farms

have little or no debt, Reserve Bank figures show 10% of dairy farms carry 45% of the sector’s debt, although no clear defini-

tion of ‘farm’ is given to determine whether these are corporate and multiple farm ownership structures.

European insight A WALKING tour of Slovakian capital Bratislava gave Dairy NZ recruit Craig McBeth, formerly a rural banker with ASB, an interesting insight into Europe's financial problems. The tour leader, a woman who had grown up under communist rule and its aftermath, said the best thing her government had done of late was to oppose the bailout of Greece in the first round of negotiations. However, the Slovak Government had subsequently agreed, leaving her bitter. She told McBeth her people resent bailing out Greeks, whose retirement pensions are three times those in her country. He suggests it shows why the European situation is far from stabilised. "It's easier for a bank manager here to go out and persuade a single farming business to change their thinking on debt repayment. To change the thinking of a whole population in a country like Greece is a different ballgame."

Minister lauds genetics merger

Ngái Tahu Property is currently developing three pilot dairy farms on 1,200 ha of irrigated pasture at Eyrewell, south east of Oxford, Canterbury. On-farm housing will be ready for occupation in June 2012 and the dairy units will be commissioned and commence milking in August 2012. We seek to appoint a management team for this farm cluster comprising a Senior Farm Manager and two Farm Managers for full-time employment commencing June 2012.

Senior Farm Manager The Senior Farm Manager position is a challenging hands on leadership position in which you will be responsible for the operational and environmental performance of one farm together with overseeing and coordinating the management of the farm cluster. To be successful in this role you will need: • a tertiary degree in Agricultural Science and Commerce • at least 10 years of experience in the dairy sector managing dairy farming operations • a strong sense of commitment to advancing sustainable dairy farming practices • strong leadership skills in developing and managing cohesive teams.

Farm Managers (2) Each Farm Manager position will be responsible for the operational and environmental performance of one dairy unit milking 1,000 to 1,400 cows off a 300 to 400 ha irrigated pasture. To be successful in this role you will need: • appropriate industry qualifications • at least 5 years experience in the dairy sector managing dairy farming operations • a strong sense of commitment to advancing sustainable dairy farming practices • excellent human resource management skills. “IF WE can improve the genetic performance of the red meat sector and deliver those improvements to the world, it would be huge.” Agriculture Minister David Carter was speaking at the official launch of Rissington/Landcorp genetics merger Focus Genetics at its new premises at Ahuriri, Napier. He says the new firm has a key role to play in helping to lift the performance of the red meat sector in New Zealand. “With the strong reputation of Rissington Breedline coupled with Landcorp I think there is a wonderful opportunity to grab genetic gain and use it.” Focus Genetics chief executive Graham Leech says after three months trading the opportunities presenting themselves are exciting. “This new venture capitalises on 30 years of research and development by both the Rissington Breedline and Landcorp teams. Bringing them together will benefit the red meat sector in New Zealand.” Focus is the largest provider of genetics – rams, bulls and stags – to the red meat sector in New Zealand and has associated ventures in UK, Brazil and Uruguay.

Nau mai, haere mai, tauti mai! A copy of the position descriptions and consent form can be found by clicking onto http://www.ngaitahu.iwi.nz/Te-Runanga/Employment/. To apply, please complete the consent form and email this with your letter of application and CV to Phillipa Bell, at mahi@ngaitahu.iwi.nz. All applications will be electronically acknowledged and further correspondence may be by email. Applications close Tuesday 8th November 2011.

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Rural News // november 1, 2011

agribusiness 21

Major addition to Westland board SU DES H K I SSU N

FORMER FONTERRA executive Bob Major is to join Westland’s board, replacing Anzco Foods’ founding director Graeme Harrison, who retires after a 10-year stint with the west coast milk processing cooperative. Major was managing director of Fonterra’s China operations and a Sanlu board member when the company was rocked by the melaminetainted milk scandal. The tainted milk killed six babies and affected 300,000 others. He retired from Fonterra after his contract expired in May 2009.

Westland Milk chairman Matt O’Regan says Major brings an impressive 30 years of dairy industry and agribusiness expertise to Westland. “We are fortunate to have acquired a director of Bob’s calibre whose global dairy knowledge will add significant expertise and depth to the board.” He says Major has a strong leadership profile having held various senior executive roles within Fonterra, the New Zealand Dairy Board and New Zealand Milk Products. His broad commercial experience in the global dairy and food industry led to him being assigned responsibility for various

mergers and acquisitions, joint ventures, government relations, global strategy, sales and marketing and research and development. O’Regan says Major was responsible for all marketing activities in support of Fonterra’s ingredient and growth businesses. As group director of global strategy at the New Zealand Dairy Board, he was responsible for the organisation’s global strategy, mergers and acquisitions and regulatory and legal activities. He’s also served on the boards of LIC and the forerunners to Dairy NZ, Dexcel and Dairy Insight. He’s currently chairman

of The Mud House Wine Group, Blenheim and a director of five other subsidiaries within the Mud House Wine Group. He’s held advisory board roles

with a number of private New Zealand food and agribusiness companies.

Bob Major

EN SA NO DS LE VE FR MB IDA ER Y 11

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Ten vying for Fonterra board TEN FONTERRA board candidates vying for three seats on the co-op’s board are on the road this week [Oct 31-Nov 4], speaking and fielding questions from shareholders at 11 venues over five days. Voter packs were posted to shareholders late last month and voting is underway online, by fax or post. Online voting has been simplified so that board, shareholders council, and annual meeting resolution ballots may be

completed in one login. Voting closes 10.30am November 15 with results announced later that day via media release and on Fencepost. Returning officer Warwick Lampp says ten candidates is unprecedented. Shareholders councillor elections are being held in wards 16 (Rotorua), 22 (Central Taranaki), 25 (Northern Manawatu), 26 (Hawke’s Bay) and 31 (Mid Canterbury).

Dairy NZ meeting and open farm INDUSTRY GOOD levy body Dairy NZ has its annual meeting tomorrow afternoon [November 2], preceded by an open morning at its Waikato research station, Scott Farm. Work on increasingly popular high summer and autumn production pasture plants chicory and plantain will be explained by Dairy NZ scientist Julia Lee while principal scientist Dave Clark will

talk about Pastoral 21 work on making dairy farming more profitable and productive while reducing its environmental footprint. Ryegrass persistence will be addressed by senior scientist Errol Thom and DairyNZ reproduction team leader Chris Burke will highlight work on cycling status pre-mating and relation to conception rate. The annual meeting

starts 1pm, Claudelands Conference and Exhibition Centre, Brooklyn Road, Hamilton. Chairman John Luxton will review the year and director election results will be announced. • Farm visits 10am, Scott Farm, 208 Vaile Road, Hamilton. Lunch provided at the annual meeting venue. Farmers wanting a place on the farm visit and lunch, tel 0800 43247969.

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Rural News // november 1, 2011

Market Snapshot North Island c/kgCWT

Lamb - PM 16.0kg

Lamb Market Trends

Meat South Island

Lamb Prices Last Year

Change

Last Week

2 Wks Ago

Last Year

P2 Steer - 300kg

n/c

4.55

3.98

M2 Bull - 300kg

4.45

4.42

3.81

P2 Cow - 230kg

n/c

3.50

3.05

5.89

M Cow - 200kg

n/c

3.25

2.98

4.60

3.60

Local Trade - 230kg

n/c

4.50

4.20

7.68

5.26

P2 Steer - 300kg

n/c

4.35

3.82

n/c

7.68

5.83

M2 Bull - 300kg

n/c

4.05

3.62

PX - 19.0kg

n/c

7.68

5.84

P2 Cow - 230kg

n/c

3.40

2.62

PH - 22.0kg

n/c

7.68

5.79

M Cow - 200kg

n/c

3.30

2.47

n/c

4.38

3.33

Local Trade - 230kg

n/c

4.30

3.80

Change c/kg

Last Week

n/c

7.83

5.66

n/c

7.85

n/c

7.68

PM - 16.0kg

n/c

7.85

5.88

PX - 19.0kg

n/c

7.87

5.89

PH - 22.0kg

n/c

7.88

MX1 - 21kg

n/c

4.60

n/c

PM - 16.0kg

n/c

4.55

n/c

4.35

Bull - M2 300kg

4.45

n/c

4.05

Venison - AP 60kg

n/c

9.05

n/c

9.45

c/kgCWT YM - 13.5kg

Mutton SI Lamb

YM - 13.5kg

North Island 16.0kg M Lamb Price $8.5

5yr Ave Last Year This Year

$7.5 $6.5

Mutton

MX1 -

1000s

$4.5 $3.5 Sep

Oct

Nov

Dec

21kg

NZ Slaughter

$5.5

Aug

Change

2 Wks Ago

Last Week

Steer - P2 300kg

Jul

Beef Prices Last Week

Change c/kg

NI Lamb

Change

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

5yr Ave Last Year This Year

$6.5

1000s

Oct

Nov

17.1

17.6

19.8

Lamb SI

+46%

115

124

116

Cattle SI

+46%

6.0

4.1

6.8

6.6

Lamb NZ

+7%

261

245

303

278

Cattle NZ

+6%

23.1

21.7

26.6

25.4

Mutton NZ

-5%

Bull NI

+18%

2.0

1.7

3.2

3.3

Bull SI

+100%

0.4

0.2

0.8

1.2

Str & Hfr NI

-4%

9.6

10.0

9.3

10.3

600

Last Year

Str & Hfr SI

+31%

3.8

2.9

4.2

450

This Year

Cows NI

-7%

5.5

5.9

7.3

5.2

Cows SI

+80%

1.8

1.0

1.8

1.3

NZ Weekly Beef Kill Aug

Sep

Oct

Nov

Change

Dec

Last Week

2 Wks Ago

Last Year

5yr Ave

n/c

2.40

2.02

1.51

NZ$/kg

10.53

10.50

9.37

8.30

$4.0

Aug

NZ$/kg

Sep

Oct

Nov

Dec

Jul

5yr Ave Last Year This Year Aug

Sep

Oct

Nov

Dec

Aug

Sep

Oct

$9.0

5yr Ave Last Year This Year

$8.0

Nov

Dec

Last Week

2 Wks Ago

Last Year

5yr Ave

1.95

1.90

1.72

1.44

+14

5.42

5.28

5.08

4.49

Nov

Dec

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI

-0%

75.7%

75.9%

64.0%

52.8%

% Returned SI

+0%

73.1%

72.9%

64.0%

60.2%

80%

$2.00 $1.80 Last Year

$1.60

This Year $1.40 Jul

Aug

Change

Last Year This Year

60%

Oct

Nov

Dec

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI

-1%

81.5%

82.8%

75.04%

82.2%

% Returned SI

-1%

74.7%

75.8%

71.9%

76.6%

Procurement Indicator - North I.

85%

50% Aug

Sep

Procurement Indicator

Procurement Indicator - North I.

70%

North Island 60kg Stag Price

Oct

Demand Indicator - US 95CL Beef

This Year

£1.60

Change

Jul

Sep

Last Year

Procurement Indicator

$3.0

Aug

95CL US$/lb

$4.0

$3.5

Jul

£2.10

South Island 300kg Steer Price

$4.5

Change

$3.0 Jul

Export Market Demand

Demand Indicator - UK Leg Price

£2.60

This Year

£/lb

UK Leg

Last Year

Dec

5yr Ave Last Year This Year

18.9

-3%

North Island 300kg Bull Price

$3.5

5yr Ave

Cattle NI

Export Market Demand $4.5

Last Year

162

Jul Sep

3 Wks Ago

178

$3.5 Aug

2Wks Ago

166

0 Jul

Change

146

150

$4.5

Estimated Weekly Kill

-12%

300 $5.5

Lamb NI

NZ Weekly Lamb Kill

$7.5

c/kgCWT

NZ Slaughter

Estimated Weekly Kill

South Island 16.0kg M Lamb Price

$8.5

Beef Market Trends

80%

Dec

75% $7.0

70%

Procurement Indicator - South I. Last Year

75%

$6.0 Aug

Sep

Oct

Nov

Dec

Jan

This Year

65%

Last Year

65%

This Year

60% Aug

Oct

Dec

South Island 60kg Stag Price

$10.5

5yr Ave Last Year This Year

$9.5

55%

Procurement Indicator - South I. 45% Aug

Oct

Last Year This Year

85%

Dec

$8.5

75%

Venison Prices $7.5

Change

$6.5 Jul

Aug

Sep

Oct

Nov

Dec

65%

Last Week

2 Wks Ago

Last Year

5yr Ave

NI Stag - 60kg

n/c

9.05

8.00

7.51

SI Stag - 60kg

n/c

9.45

8.20

7.89

55% Aug

Oct

Dec

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.

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Rural News // november 1, 2011

Beef Wool Price Watch Prices heating up in the North Island Procurement competition in the North Island is heating up as companies start opening capacity. At the same time, the bobby calf kill is tailing off and cattle numbers for slaughter are light. The latest data has cattle kill rates running 11% below last year. As a result companies are stepping out with some premiums on lines as required. The gap between bull and steer prices is closing. The general market for 300kg bull is at $4.40-4.45/kg but better lines can be make 10-15c/kg more. 300kg cwt steer prices are holding at $4.55/kg. There was very little change to bull and prime steer prices in the South Island last week while the cow market is showing signs of heating up due to a lack of numbers. 300kg steer is holding at $4.35/kg while 300kg bull is firm at $4.05/kg. Despite a lack of cows, overall cattle slaughter rates in the South Island are well up on normal and this has prevented any further upside to pricing levels in recent weeks. US imported beef demand sparks into life After falling through September, US imported beef prices once again have a spring in their step. Prices have lifted by close to 10c/lb in the last fortnight. Driving this positive result has been firmer demand out of the US. Tighter pipeline supplies of imported beef and the growing prospects of much tighter US domestic beef supplies next year looks to be sparking the market into life. A lift in US imported beef prices is unusual for this time of the year as generally the US cow kill is peaking. But the US drought this season has the markets out of whack. Unless there is a big lift in production out of NZ and Australia the US market will continue to perform as end users need some security of supply.

Lamb

Dairy Price Watch Change

13-Oct

06-Oct

Last Year

Indicators in NZ$/T

Coarse Xbred Indic.

-18

6.39

6.57

4.85

Butter

Fine Xbred Indicator

-2

6.86

6.88

5.04

Skim Milk Powder

Lamb Indicator

Mid Micron Indic.

8.80

7.19

Indicators in NZ$

Wool Indicator Trends

750

Last Year

-251

5105

5356

5741

-219

4207

4425

4157

Whole Milk Powder

-190

4317

4507

4553

Cheddar

-323

5278

5601

5345

650

6,000

550

5,000

450

Dairy Prices Trends

4,000 CXI

FXI

SMP But.

350

3,000 Oct

750

Dec

Feb

Apr

Jun

Aug

Oct

Coarse Xbred Indicator

Dec

WMP Ched.

Feb

Apr

Jun

Aug

Whole Milk Powder Price (NZ$)

5,500 Last Year

650

This Year

550

4,500

450

Last Year

350

This Year

250 Aug

Sep

Oct

Nov

3,500 Aug

Dec

Jan

Indicators in US$/T

Overseas Price Indicators

Sep

Change

13-Oct

06-Oct

Coarse Xbred Indicator

5.08

5.03

3.65

Butter

Fine Xbred Indicator

+18

5.45

5.27

3.80

Skim Milk Powder

Lamb Indicator

Mid Micron Indicator

7.00

5.41

Indicators in US$/kg

0.54 0.52 0.50

Dec

Jan

Prev. 2 Wks

Last Year

-50

4050

4100

4350

-50

3338

3388

3150

Whole Milk Powder

-25

3425

3450

Cheddar

-100

4188

4288

4050

Aug

Sep

Oct

Nov

Change

Dairy Prices in US$/Tonne 4,500

3,500 SMP But.

2,500 Oct

Dec

Feb

Apr

WMP Ched.

Jun

Aug

Whole Milk Powder Price in US$/T

3,800 3,600 3,400

Last Year

3,200

This Year

3,000 Aug

Last Year 0.747 0.537

Sep

Oct

Nov

Dec

US Dollar Last Year This Year

0.85 0.75

0.475 0.763

0.65 Jul

60.65

Aug

Sep

Oct

Nov

Dec

UK Pound Last Year This Year

0.53

Last Year This Year Jul

Nov

Last 2 Wks

Wool Indicator in US$

Markets holding due to lack of supply Spring prices have peaked for venison at just over $9/kg in the North Island and between $9.40-$9.50/kg in the South Island. Prices are forecast to start easing now but don’t expect prices to fall quickly.

Oct

Overseas Price Indicators Last Year

Venison

KNOWLEDGE

Prev. 2 Wks

7,000

685 Market awaiting new season offerings 585 A lack of killable lambs continues to underpin lamb prices 485 in the North Island. The latest lamb kill data showed that 385 kill rates have dropped back sharply by 12% week on week. Kill rates are now below last year and 5-year 285 CXI FXI LI average levels by 18% and 10% respectively. This is very 185 Oct Dec Feb Apr Jun Aug much holding lamb prices which remain steady at around $7.85/kg (nett). The supply of old seasons lambs is Coarse Xbred Indictor in US$ dwindling in many regions and there are still a few weeks 600 before good numbers of new seasons lambs will be Last Year coming on stream. A few new season lambs are filtering This Year into South Island plants from some of the earlier country 400 around Canterbury. With only minimal numbers coming forward prices are ranging from $8.00-$8.20/kg with 200 larger lines achieving the top price bracket. Export Aug Sep Oct Nov Dec Jan slaughter prices for hoggets (old season lambs) is holding at $7.68/kg (nett). Slaughter rates have picked up recently but compared to this time last year they are still well down, by Currency Watch nearly 15,000 head per week. Last 2 Wks 4 Wks vs. NZ Dollar Week Ago Ago EU debt crisis overshadows lamb demand US dollar 0.794 0.793 0.782 There has been little interest out of Europe in the last fortnight for lamb, Euro 0.576 0.577 0.578 some NZ exporters have reported. The economic issues surrounding UK pound 0.503 0.504 0.508 Europe are causing importers to take a more cautious stance with some Aus dollar 0.775 0.780 0.799 holding fire on negotiations. The window of opportunity to supply the Japan yen 60.98 60.99 59.66 lucrative chilled Christmas trade is narrowing with some exporters not getting as much away as hoped for. Some of this comes down to lack of Euro supply of new season lambs with numbers only starting to filter through. 0.62 0.60 Some are saying it has been the hardest couple of months in years to 0.58 shift meat with lamb increasingly being viewed as a luxury item. 0.56

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Dec

0.48 0.43 Jul

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Sep

Oct

Nov

Dec

Rural News // november 1, 2011

24 opinion editorial

edna

Birthday shout jury out HOW SUDDENLY things can change. One day you’re celebrating your cooperative’s 10th birthday with the nation, not to mention a Rugby World Cup win, the next your board’s telling you to expect 45c/kgMS less for your milk this season. Then a gas pipeline shuts down a quarter of your firm’s processing capacity, and, if you happen to be in the area affected, you have to start dumping all your product. Such is the life of a Fonterra shareholder. It would be easy to look at the payout cut and production loss caused by the gas leak and ask what on earth was the cooperative doing spending millions of dollars on a big party? Rural News did ask what the budget was for the seven venues, dozens of live acts, and tens of thousands of icecreams, yoghurts and sausages. Unsurprisingly, we didn’t get an answer, or at least, not a figure. But shareholders are going to want to know, and rightly so. With that information, it then becomes a judgement call as to whether the celebration was the right thing to do. There’s no question 10 years is a notable milestone for the cooperative and it deserved recognition. But did it deserve the big ‘Shout’? It was billed as a big thank you. For what? The New Zealand public – or at least the vocal dairy detractors often reported in the media – appear far from appreciative of what the cooperative does for the country. In practice, the Shout was as much about winning people over as saying thank you – a PR excercise. Will it have achieved that? With the 100,000 or more who apparently attended, yes, though most probably support Fonterra anyway. Hopefully there will be some good word-of-mouth publicity from it down the track too, especially as the hundreds of thousands of dollars in charitable donations associated with the day are delivered. However, judging by the scarcity of reports on the Shout posted on media websites by the middle of last week, if the aim was to achieve a big impact beyond the events themselves, it fell short. The day probably even entrenched some diehard cynics’ views, as they saw the free icecreams and entertainments as bribes to accept, or at least turn a blind eye to, the environmental problems they believe the industry causes. But you can never please some people, and given it was a one-in-ten-year event, the effort and expense, whatever it was, probably were justified. It was fortuitous for Fonterra that a certain one-in-four-year rugby event, which concluded the night before, for once went New Zealand’s way. It all made for a great day.

RuralNEWS Head office Postal address: PO Box 3855, Shortland Street, Auckland 1140 Publisher: Brian Hight...................................................... Ph 09 307 0399 General Manager: Adam Fricker.................................................... Ph 09 913 9632 Editor: Andrew Swallow............................................. Ph 03 688 2080 editor@ruralnews.co.nz................................... Ph 021 745 183

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the hound

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Warped words

‘Good oil’ no more

OCTOBER 17 was World Food Day, a United Nations Food and Agriculture Organisation annual event marked in 150 nations. This year the theme was ‘Food Prices, from crisis to stability’, not that you’d have known that from New Zealand Soil & Health Association’s take on it. “World Food Day... is being marked internationally by activities showing the lack of labelling on GE foods, and a push against GE foods by events such as Right2Know and Millions Against Monsanto”, it trumpeted. Talk about twisting events to suit your own ends.

HOW OFTEN have you heard an expert’s presentation on a subject described as the ‘the good oil’. Your old mate reckons in light of the Rena disaster that particular cliché is going to drop out of favour, especially when the topic is water, and you’re in the Bay of Plenty!

What was Labour trying to hide? THE HOUND has heard that invites to Labour’s agricultural policy launch, at Hawkes Bay A&P Show last month, landed in media inboxes less than 24 hours before messrs Goff, O’Connor, and Nash were due to unveil the document. It makes you wonder what they were trying to hide. Then again, when you read it, maybe not.

Trade tweaking container traffic TALKING TO a machinery importing mate the other day, he said it’s getting harder to find container space, and the service is less frequent, for goods coming in from Europe. Apparently it’s because we’re sending so much less lamb and other agricultural exports over there. Your old mate suggested that’s one way of keeping the balance of payments in check, but then again, maybe it’s just another reason why we’ll all end up with machines made in China.

‘Lowering’ the opposition WHAT A great event the Rugby World Cup was. Fantastic. Enjoyed every minute of it, even that nail-biting final. Only one growl – why was a certain TV One match commentator seemingly incapable of saying the simple word “tackled”? Instead we repeatedly had players “lowered”. What? The likes of Brad Thorn and Jerome Kaino – or Thierry Dusautoir come to that – do not “lower” players any more than a freight train travelling at 100kmh does! Come on Mexted, get a better metaphor.

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Website Producer: James Anderson . .........................Ph 09 913 9621 Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.

Rural News // november 1, 2011

opinion 25

Let's at least debate sale of Landcorp Recently the Government’s farming entity announced a $27.5 million dividend after a $42.2 million net operating profit for the year ended June 30, 2011. This result is a big improvement on the previous year’s $10m pre-tax profit. The corporate farmer says its profit improvement is due to higher meat, dairy and wool prices and favourable growing conditions through the second half of the year. This year’s dividend of $27.5m is also a big increase on the previous year’s $18m. Record milk production, at 12.5m kgMS, accounted for $94.6m in sales. Another $51.3m came from sheep meat, with its average price per lamb up 40% as export markets made a strong recovery. Beef revenue was up 28% at $40.1m. Wool, venison and forestry income also rose, and $10.3m was made on land sales. Landcorp chairman and former agriculture minister Jim Sutton said it was gratifying the state farmer could make such an increased cash contribution to New Zealand after the Christchurch

know state asset sales are earthquakes. a touchy subject in the “Our commitment run to the election, and in 2011-12 and beyond selling farmland would be is to keep delivering in tantamount to treason, financial terms and in especially to an Asian response to other big ecobuyer, but shouldn’t we nomic and environmenat least discuss it? tal challenges facing this comment When the Governnation,” he said. david anderson ment is running massive But is Landcorp really delivering a great return to taxpayers deficits and struggling to pay for essentials such as healthcare and education and the Government? The state-owned organisation cur- – let alone the rebuild of earthquakerently owns 175,000ha of farmland, damaged Christchurch as Jim Sutton valued at $1.05b. It also has livestock points out – can New Zealand afford worth $297m and its total asset base is to sit on nearly $1.7b of assets that are making such a poor rate of return? $1.66b. Should the Government/taxpayer Even with my rudimentary maths skills, I can work out that $42m profit have so much capital tied up in a comand a $27.5m dividend is not a great mercial farming venture? Nowadays, it return on capital. In fact, it’s pretty makes about as much sense for the state awful. So is Landcorp really a good to run a commercial farming operation, investment for Government and tax- as it does for the Government to run a commercial print or radio operation. It payers? Not at all. Landcorp’s latest profit works out at no longer runs the latter two; so why is just a 0.025% return on capital, while its it still operating the former? Landcorp’s whole raison d’être was dividend to taxpayers is just 0.016%. I

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Landcorp’s annual report’s headed delivering, but is it?

changed when it was established as a SOE back in 1987 and assumed the commercial farming and property activities of the former Department of Lands and Survey. It is now a corporate farmer and no longer acts as a stepping stone to help young people own their own farms. In fact, it’s more of an obstacle for young people wanting their own farms, as it has the economic clout of the state at its disposal to outbid any individual going for his or her first farm. According to Sir Michael Fay, leader of a group of farmers trying to head off a Chinese company’s bid to buy the

Crafar farms, “Landcorp is well known in the farming community for buying farm land in competition with locals effectively using taxpayers’ money to outbid those same taxpayers.” Fay does have an axe to grind in light of Landcorp’s discussions with Shanghai Pengxin to manage or sharemilk the Crafar properties if the Chinese company is successful. But axe or no axe, the former state asset stripper and latter day saviour, Fay, does make a good point. Wouldn’t Landcorp’s near $1.7 billion of capital be better invested by the Government in things like schools, hospitals and police?

Rural News // november 1, 2011

26 opinion

Crop lifts output, cuts losses MAIZE HAS become a vital part of the dairy farm supplement calculation. The area drilled is at least 20,000 ha and increases every year. About 95% of maize is grown in the North Island, with the biggest area in the Waikato. Maize is termed a C4 plant; it is tolerant to high temperatures and is efficient in water use. It grows rapidly and yields of over 20 tonnes dry matter (DM) are common. Combined in rotation with a

winter crop, such as an annual ryegrass taken for baleage, a farmer might reasonably expect to be harvesting 30 tonnes of DM per hectare per year – twice as much as from pasture. More benefits are the relatively high metabolisable energy, but low protein assist, when eaten with grass, to increase milk production and reduce nitrogen in urine. Further advantages are that maize is deep rooting so can access nutrients

from further down the soil profile than shallow rooting pasture plants. In areas with high soil fertility, and where farm effluent has been spread in the past, maize has the potential to reduce nutrient loss to the environment. Fertiliser companies, keen to support sustainable production systems, are assisting in protecting the environment by recommending nutrient additions to replace the nutrients taken off in the crop. The

scientifically speaking jacqueline rowarth

calculation also includes anything that is able to be provided by the soil, so if the soils are highly fertile, the nutrient inputs are reduced. The Foundation

for Arable Research (FAR) has shown that in high fertility paddocks it may be possible to grow high yielding crops of maize with no applied fertiliser. However, when maize is being grown in a continuous cropping rotation, perhaps with annual ryegrass, on a support block, the replacement fertiliser approach will result in a reduction in the organic matter and nutrient status of the soil. For recommendations

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based on off-take of N, 22t of silage in the stack at 7-9% crude protein 240320 kg/ha of N, or 11kg N/t DM is recommended. However, research has shown N fertiliser recovery in the above-ground component of a crop (the part harvested) is nearer 40% than 100%. Nitrogen needed by the crop and not applied as fertiliser or returning from the animal has to come from somewhere. The source is likely to be ‘readily available N’ in the soil solution and soluble N derived from decomposing organic matter. Every tonne of carbon in soil organic matter is associated with about 80kg N, 16 kg of P and 12kg S. The problem is how well adding fertiliser N can replace the carbon (C) offtake. Professor Tony Parsons, Massey University, explains. “Agricultural systems in which a large proportion of the C fixed in photosynthesis is removed from the ‘field’ in the material harvested, are likely to lead to lower C (and N) content in the soil. Although we can add N fertiliser to ‘match’ the N being removed at har-

vest, diminishing returns are achieved in the way the system can use the added N to increase photosynthesis sufficiently to replace the C removed at harvest. We might sustain yields with fertiliser, but in systems with high offtake of C (and N), we must expect sustained lower C and N in the soil. This helps explain why New Zealand cropping soils are generally 3% C in comparison with pasture soils which contain about 5% C.” Addition of carbonrich manure from feed pads can assist maintain C. This is particularly the case when carbon rich supplements such as palm kernel expeller (about 47% carbon) have been used. Professor Parsons and Dr John Thornley, visiting scientist at Massey, funded by the Agricultural Green House Gas Research Centre, are working on elucidating the drivers of soil carbon. Their research will assist in managing intensive farming systems sustainably. • Jacqueline Rowarth is Professor of Pastoral Agriculture, Massey University

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Rural News // november 1, 2011

Opinion/letters 27 Are you informed on TAF? So Theo Spierings is worried about “throwing the baby out with the bath water”. That is a concern many of us have but I think we are concerned about different babies. Mr Spierings is worried about losing the concept of the TAF agreement because of redemption risk; we are concerned about losing Fonterra. The redemption risk pales to insignificance compared to the risk we could face if we lose our 100% control of Fonterra. Farmers are quite within their rights to question Trading Among Farmers as the proposal we voted for has now changed. No longer will shares be held in farmers’ names but the name of the custodian. Who or what will he or it represent? It could be the nice man from down the road who understands our passion for our company or it could be [NZX boss] Mark Weldon who has no understanding of cooperatives and has already publicly stated that one of his achievements was bringing Fonterra to the NZX. Could the custodian insist on placing an independent director on our board, perhaps someone recently retired, looking for an interest? Could the custodian influence the composition of the payout, milk price vs. share dividend? This is sheer speculation, but do we really want to put ourselves in a position where this could become a reality? Shareholders must make the effort to be totally

Benthic biota read two ways When I go fishing in our local river I look for where there is less insect activity in the stream as it means the fish stocks are eating most of them as dinner. So I find it strange that Horizons Regional Council

manager Alison Russell swallows the benthic biota survey that less insect activity in a river means more pollution. Maybe the reasoning is in the wording – ben-thic, as in thick? Clive Cottle

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all johnkeypm@rhmccawabcaptain: Arise Sir Richard! Thanks mate, all those pictures of you, me and Ted with the Cup have done more for my re-election chances than a million baby kissing photos. #youbloodybeauties pgofflabourleader: The 8-7 victory over France in the Rugby World Cup final was a disgrace. I blame John Key and the National Government – just like I have for Chch quakes, Pike River and the Rena. If I was PM we’d have lost – I mean won – far more convincingly. #desperate dcarterminofag: I understand the Labour Party and their union affiliates are so anti the farming sector (just have a look at their Ag policy) that they have sent the Psa in to ruin the kiwifruit crop in the Bay of Plenty! #bloodycommies cbrownnrcchair: Not wanting to generalise or malign the entire dairy sector, but latest water monitoring reports in Northland show our waterways are being poisoned by 1000s of arrogant, lazy, whale-murdering dairy farmers. #overthetopcomment scoupershareholderscouncil: After listening to the concerns from farmer shareholders about Fonterra’s planned TAF capital restructure plan, we will spend the next two months saying nothing and then give it the big tick. #lapdog henryfonterra@scoupersharolderscouncil: Good Shareholders Council. Sit Shareholders Council. Rollover and say Fonterra is wise and clever Shareholders Council. Do as you are told Shareholders Council. #pullingtheirstrings wmcneemaf: Why don’t we combine agriculture, fish and forestry and put them under one department – just like we did in the 90s. All the best ideas are old ones and we save 233 jobs as well! #backtothefuture

Lamb marketing truth? informed on every aspect of TAF. Because of the changes Fonterra surely has an obligation to keep shareholders more informed. I was shocked to read a 50% vote by shareholders council will carry the TAF proposal. Do you know how your shareholder council representative will vote? Meetings are being held around many areas – in our case last week. Please try to attend a meeting and if you have any doubts support the petition for another vote. We have a fabulous company, the envy of many we are told. It would be a shame to put it in jeopardy because of a lack of understanding. Linda Virbickas Whakatane

The truth about the marketing of lamb is that this is the only year in the last 20 that we have sent our lambs to the UK and been paid what they are worth. The truth is we have been sending processed lamb three quarters of the way around the world and giving it away, for less than the true cost of production. The truth is the large supermarket chains Tesco, Marks and Spencers and

Sainsbury’s, through their packers, have played one New Zealand exporter off against another, screwing down the price of lamb. The truth is while the supermarket owners were getting wealthy dealing in New Zealand lamb, the average sheep farming family like ours was reliant on family support payments from the Government just to put food on the table and pay for their chil-

dren’s clothes and education. The truth is for the average New Zealand farmer who’s selling 2000 lambs/year over the last 20 years we’ve been giving away $30-$100/lamb in value, or $60-200,000 per farm per year. As farmers we must never allow this to happen again. Dave Stanton Geraldine

Rural News // november 1, 2011

28 management

Factsheets for sharper management The launch of a community-driven farm factsheet in Rai Valley, Marlborough, attracted 70 members of the Rai/ Pelorous farming community. They were joined by Kaikoura MP Colin King, NZ Landcare Trust chief executive Nick Edgar, Rural Women NZ president Liz Evans and NIWA’s Bob Wilcock. Barbara Gillham reports. FARMERS AND their staff in the Rai/Pelorous river catchments have a new, easy reference, management guide. The Farm Factsheet is the work of the Rai/Pelorous farming community aiming for ‘best management practices’ on their farms to improve water quality in local rivers and waterways. Working with Landcare Trust project coordinator Jodie Robertson, local farmers produced the factsheet in the form of a poster for display on milking shed walls. It highlights four key points: • Keep stock out of waterways.

• Adequate effluent storage capacity. • Low rate effluent application. • Attention to nutrient management. Each point is clearly illustrated and offers a practical guide to assist making changes on the ground. The work being done is part of the ‘Farmers as Leaders in Water Quality Project’, where the local farming community takes the lead at improving the quality of water in rivers and creeks, something farmers in the Rai Valley are doing. The launch gathering

also heard more about the recommended Rai catchment management plan prepared for the Marlborough District Council by Bob Wilcock, a principal scientist in chemistry and ecotoxicology with NIWA. Wilcock says priority areas are the Ronga and Lower Rai, Opouri, Brown and Tunakino and the main causes of water pollution in the Rai River network are primarily attributable to runoff from dairy farms with little riparian buffering. His recommendations include proper effluent management – such as ensuring effluent appli-

cation isn’t less than 20m from surface water bodies, properly sized storage ponds to enable deferral of irrigation when wet soil would lead to runoff and drainage, seeking advice on optimal sizes for storage ponds, and ensuring spray rates for irrigated effluent matches soil characteristics such as infiltration rate. Wilcock spoke at length of the importance of farms excluding stock from rivers with fences at least 3-4m from stream edges, and recommends that stream banks permanently fenced are planted with shade trees and

Niwa’s Bob Wilcock.

shrubs to maintain cool water temperatures and inhibit unwanted aquatic plant growth. Other recommendations include bridges and culverts crossing sensitive stream sites, something he acknowledges in his report that the Marlbor-

ough District Council and Rai catchment farmers had made progress with. The day ended with a visit to David Bryant’s farm at Kaiuma to view the first ‘weeping wall’ installed in the Rai Valley. The system was explained to visitors in Bryant’s

absence by sharemilker Andy Reid. He explained how the two sides of the weeping wall allow water to flow out slowly, trapping solids which can be collected and spread out on paddocks at a later date. to page 31

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Rural News // november 1, 2011

30 management

Sheep shortage prompts ryegrass seed rethink andr ew swa l low

LOWER SHEEP numbers are forcing ryegrass seed growers to change their ways. Closing date – the date when you take the stock out and lock the paddock up for seed production – has long been recognised as a key element of crop management, but increas-

ingly it’s not closing date, but cutting date that’s the decision. That’s not cutting for subsequent heading: it’s cutting to harvest surplus growth as silage and reduce input requirements and/or boost output of the seed crop later in the season. It’s something the Foundation of Arable

“We’ve had quite a bit of experience of making baleage in the last few years and it is working quite successfully,” Research has been working on and was discussed at length at a recent field day. “We’ve had quite a bit of experience of making

baleage [off annual/Italian seed paddocks] in the last few years and it is working quite successfully,” AgResearch grass seed specialist Phil Rolston told a group gathered on Brian Leadley’s farm, near Ashburton. To succeed, Rolston says cutting needs to be about 10 days earlier than the crop would have been closed if it was being grazed, “to give it that extra bit of time to recover from defoliation.” “If you are going to cut for silage it’s better to go a bit early than late.” Teaching contractors not to shave the paddock as they would for a conventional silage crop is also important. “If it’s going to grow a seed crop you want them to get the cutterbar up to

about 70mm to speed up recovery.” Controlling traffic on the paddock to minimise wheel tracks will also pay dividends. “Try to get them to run in tramways and not drive all over the paddock. Those wheel marks do show up at harvest with reduced head density [hence reduced yield].” With annual and Italian cultivars, taking some tillers off below the nodes, hence removing the embryo seed head hidden in the extending stem, generally isn’t a problem. “We’ve had trials where we’ve taken 50% off below nodes and not lost yield. “They have a great capacity to generate new tillers. Often you get more the later you close.” But you can’t do that with perennial ryegrasses, stresses Rolston. “Take a few [noded tillers] off with those and you are soon on the

Cutting some tillers below the nodes won’t harm annual or Italian seed yields.

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downhill [seed yield] slide,” he warns. That said, FAR’s research does point to optimum closing dates being later than traditional timings. Current advice is October 20-30 for annuals and Italians on the lower Canterbury Plains, plus five days nearer the foothills or further south. Perennials with a flowering date on par with Nui should have been closed about October 5, again plus five days in those later production areas. For those facing the prospect of growing seed crops without stock to

graze them next spring, and who don’t want to take a baleage crop, Rolston says the first thing to take on board is to delay sowing. “Think about next year. If you know you’re not going to have any sheep to graze it in the winter the first thing to do is to delay planting until after April 20. Once you push that sowing date back with most cultivars there won’t be enough growth to worry about the closing date.” For perennials, where stock aren’t an option there’s much less likely to be enough growth to take a baleage cut, given the earlier closing dates required. However, some form of defoliation or management intervention on forward crops is necessary to prevent the canopy becoming too dense, lodging early, and depressing yield. “You’ve got three options: top it; increase the Moddus; or a combination of the two.”

Rural News // november 1, 2011

management 31

Leaf rust reminder from FAR FAR reminds growers of wheat cultivar Conquest that its previously excellent disease resistance was overcome last season by what was thought to be a new strain of leaf rust. Leaf rust is favoured by higher temperatures than stripe rust and so is usually more of a prob-

lem in the second half of the season, from growth stage 33 (third node) or 39 (flag leaf) of the crop onward. For wheat cultivars with leaf rust susceptibility, FAR says a first fungicide application can often be delayed until the flag leaf is fully emerged on

the main stem (growth stage 39), saving on an earlier application. However, earlier sprays may be needed if powdery mildew infection is high or there is early evidence of leaf rust activity. Flag leaf and ear sprays targeting leaf rust

should use epoxiconazole as the triazole as it stronger on leaf rust than the other front-running triazole, Proline (Prothioconazole), says FAR. Pyraclostrobin, as in Comet or azoxystrobin, as in Amistar, tend to be the stronger strobilurins on leaf rust.

Keep watch, particularly on previously resistant cultivar Conquest.

Factsheets for sharper management from page 28

“We’ve got two sides so there is no rush to get it empty if it’s getting full, you can just change it over to the other side while the other one is drying out.” The filtered liquid is simply pumped out along K-lines otherwise used for conventional irrigation. The weeping wall was installed in the pit in May. Reid says it takes about three months for the pit to fill with solids. “It’s a great system. The [liquid] effluent goes straight out into the paddocks and you’ve got a lot of control over where you’re putting it.” Landcare regional

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32 management

Grass-fed market opportunities THE SAYING ‘you are what you eat’ is as true for livestock as for humans, and New Zealand’s sheep, beef and dairy industries are missing a trick in not making more of that, says a leading British ruminant nutritionist. Cliff Lister says New Zealand’s pasture-based

sheep, beef and dairy industries produce meat and milk with a higher omega-3 content. Omega-3s are essential fatty acids for human and animal health with vital roles boosting immunity and disease resistance, creating an anti-inflammatory response to infec-

tion and reducing the risk of heart disease and blood clots. Omega-3 fatty acids are also found at high levels in certain fish oils and linseed, or flaxseed. “Grass-based diets encourage lean muscle development rather than fat, meaning grass-fed beef and lamb is typically

leaner than meat produced from silage or grainfed stock and contains a higher level of omega-3 fatty acids,” he points out. That means better health and condition for the animal, and a leaner source of meat with a more healthy profile of fatty acids for the con-

Cliff Lister

sumer. Similarly, dairy cows fed a grass-based diet produce milk with a higher omega-3 content than that of grain-fed counterparts. A study from RMIT University in Melbourne found only grass-fed beef had the target of at least 30mg of long chain n-3 FA/100 g muscle as recommended by Food Standard Australia and New Zealand

for a food to be considered a source of omega-3 fatty acids. “Omega-3s in beef fed on grass represent 7% of the total fat content, compared to 1% in grain-only fed beef,” says Lister. “That’s because about two-thirds of the oil found in grass and clover is omega-3 (alpha-linolenic acid), which is known to have huge health benefits to stock and to humans.” Lister has been in New Zealand speaking to farmers about the benefits of the Crystalyx range of dehydrated molasses blocks distributed by Altum. “Crystalyx enhances grass intake and digestibility, therefore the animal makes better use of the omega-3 content in the grass.”

Video helps with heat detection LIC HAS released a short video to help new farm staff tell when a cow is on heat, or in oestrous. Until now, there have been descriptions of what to look for, but nothing visual. The video provides that, says the firm. The three minute clip explains the five basic signs of a cow on heat. The video can be viewed on www.lic.co.nz: hover over the ‘product and services’ tab, then click on ‘Kamar’ in the drop-down menu. The video is at the bottom of the Kamar page.

in brief Resistant weeds A US weed expert says bringing back an early herbicide could help manage growing resistance issues. University of Illinois associate professor of weed physiology Dean Riechers says while farmers can’t imagine going back to 2,4-D or other auxin herbicides, resistance to other products, notably glyphosate, is bad enough companies are willing to bring it back. Riechers and his research team suggest that tank-mixing auxinic herbicides with glyphosate may be the best short-term option available to farmers interested in broad-spectrum, post-emergence weed control. Crane Dist Rural Roundup October 2011 280x187 Advert 1.indd 1

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Rural News // november 1, 2011

34 Animal Health

Fresh take on welfare issues A COMPANION animal conference that opened yesterday (October 31) looked set to cross into farm animal territory, with debate on battery farming, shelter for farm animals, and limiting animal experiments on the agenda. Agriculture Minister David Carter and legal experts were to speak on suggested changes to the 1999 Animal Welfare Act, due for formal review in 2012. “We’re delighted the minister will join us, as he’s shown a marked awareness of animal welfare issues and of the need for our legislation to reflect the priority New Zealanders give to such matters,” said Bob Kerridge, patron and spokesperson for the conference organiser, the New Zealand Companion Animal Council (NZCAC). Joining the minis-

ter was the MAF director of animal welfare David Bayvel, barrister and journalist Catriona MacLennan, and Queen’s Counsel John Haigh, as well as Russell McVeigh partner Mike Heron, and barrister Anita Killeen, a director of SPCA Auckland. “It’s great to be able to bring such a respected collection of legal minds together. “All the lawyers on our panel have had extensive experience of cases relating to the Animal Welfare Act and their contributions to the debate will be worth listening to,” said Kerridge. Heading the list of topics for discussion was enforcement of codes of welfare for specific animal species, notably dogs and cats; outlawing cosmetic tail docking for dogs; and a limiting of custodial care obligations of the SPCA.

“Perhaps most controversially, we’ll be discussing the abolition of battery farming, through the termination of exemptions to the ‘five freedoms’ integral to the Animal Welfare Act,” said Kerridge. The ‘five freedoms’ are freedom from hunger and thirst, from discomfort and inadequate shelter, from disease and injury, from distress and pain, and freedom to display normal behaviour. “Paradoxically, although the 1999 act is largely predicated on these principles, some of the welfare codes created under the act allow for shockingly inhumane exceptions, such as sow stalls, battery egg production and the intensive raising of broiler chickens. “In the NZCAC’s view, these practices should be banned [soon]. We believe many New Zealand-

ers would support such moves.” The fifth item for discussion was establishment and enforcement of minimum standards of shelter for farm animals, in winter and summer conditions. Kerridge says there is a growing public consensus for change.

This week’s New Zealand Companion Animal Conference will discuss exemptions from the Welfare Act’s five freedoms.

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THE LIFE and work of New Zealand’s first woman registered as a veterinarian was celebrated this week by the New Zealand Veterinary Association in Wellington. Ann Leighton (nee Rogers), was schooled at Iona College, Havelock North, before going to Sydney University in March 1937 and graduating in 1942 with a veterinary degree. On her return she became the first woman vet registered in New Zealand. She initially worked for the Kaipara Veterinary Club. And after marrying veterinary colleague Jack Johnston the couple practiced in South Auckland, Taranaki and Waikato. Her preference was large animal work and she spent her professional life working in rural areas – very much a male veterinary domain until recent years, notes the NZVA. “Reading Ann’s textbooks and her veterinary diary is a poignant reminder of how much veterinary science and the treatment of animals has changed, which today’s veterinarians and animal owners take so much for granted,” says NZVA president Gavin Sinclair. Some 75% of veterinary graduates today are female and of those in practice 1248 are women and 1233 men. Following Johnston’s death she returned to work for Kaipara Veterinary Club, now Helensville Veterinary Services, for many years, including tuberculosis testing in the 1970s. She married local farmer Eric Leighton, who shared a common interest in thoroughbred horses. She died, aged 92, in June this year. “It is important to acknowledge those people who have contributed so much to veterinary practice over the years, particularly in 2011 as we celebrate 250 years of veterinary practice,” says Sinclair.

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Rural News // november 1, 2011

36 animal health

Feed factor over-egged in cow fertility debate MA RY W I TS EY

PASTURE IS still the best feed for cows and in most cases supplementation won’t improve reproduction. That was the hard-hitting message from Dairy NZ principal scientist John Roche in Southland last week at a Southland Demonstration Farm field day looking at reproductive failure. Cow nutrition during breeding can be over-emphasised, he warns. Cow fertility internationally has declined markedly in recent decades and more feed won’t necessarily result in more cows getting in calf. In the past 25 years the average 6-week in-calf rate in New Zealand has fallen from 70% to 50%. “So basically our reproduction has gone South,” says Roche. “Literally, as milk yield has gone up, the empty rate has gone up with it and that’s true across the world.” Studies indicate the decline can be

attributed to an increase in embryo mortality. “What we’ve been seeing more and more is where egg quality has possibly declined, the cow has changed and we’re seeing differences in the uterus and so we’re not seeing that embryo growth that we would have seen 20 years ago.”

the seasonal breeding period showing little effect on fertility. Half of a group of 800 cows across two Taranaki farms had a 40-50% restriction in feed (8kg DM/ha per cow per day) for the first two weeks of mating. Their pregnancy rate was only 7% lower to first service than those

“New Zealand data indicates that 25-40% of cows will have subclinical endometritis which can impact on reproductive performance.” However, the trend to give cows more supplements or increase pasture will have limited impact on cow fertility, Roche says. “People think that it all comes down to feeding – we need to feed her more of this, or more of that.” But he says it’s not as simple as that, with the results of a DairyNZ study into acute feed restrictions at the onset of

cows that had been fed well. “That isn’t to say that nutrition isn’t important, but the results do indicate that poor feeding in early lactation is not the main reason for poor fertility.” If cows graze to residuals of 15001600kgDM/ha, offering supplements will not improve reproduction, he says. Cycling rates are a factor far more likely to impact on reproduction and

Roche believes this is something which needs more focus. “We need to get cows cycling earlier. The more cycles we can have an animal going through before a breeding season, the more likely we’re going to have high submission rates and high conception rates. “I think we need to consider this very, very strongly before we start looking for nutritional cures to the problem.” He also says supplementation with non-structural carbohydrates, like grain and molasses, in early lactation has little effect on fertility when cows are grazing to residuals of 1500-1600kgDM/ha. However, nutrition during the transition period is one area which needs further research, particularly around the incidence of uterine infection.

“Nutrition could be associated with the incidence of subclinical endometritis, an inflammation of the lining of the uterus, which is extremely hard to detect. “New Zealand data indicates that 25-40% of cows will have subclinical endometritis which can impact on reproductive performance.” The worst affected cows – up to 20% of the herd – will have a 20% lower conception rate to first service, he says. This is currently a focus for DairyNZ, which is collaborating with AgResearch, the Animal Health Centre in Morrinsville and Auckland University, with both DairyNZ levy and Government funding supporting the research.

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animal health 37

Feed important at other times WHILE URGING caution over the role of nutrition for cow fertility, DairyNZ senior scientist John Roche says it does play a part. He points to late lactation, transition and early lactation as the key periods when feed can boost fertility, but stresses while nutrition is important for getting cows in-calf, feeding supplements during the breeding season won’t boost in-calf rates. “Nutrition is an important component of successful reproduction – no question about it.” However, it’s most influential in the last lactation, he stresses. “Your greatest influence this year on your reproduction will be next March, April and May. “We can feed supplements at that stage to gain body condition score (BCS), we can milk cows once a day and gain BCS and we can dry them off a couple of weeks early and gain BCS. “There are many ave-

nues, but the key thing is that a BCS of 5 at calving is fundamental in having that cow cycling earlier. Cycling earlier is fundamental to her having more cycles before she’s bred and that’s fundamental to her actually getting pregnant.” It is recommended mature cows calve at BCS 5, losing no more than 1 BCS unit between calving and mating with a greater than a BCS 4 at mating. Heifers and second calvers tend to be less prone to mastitis and endometritis if they calve at a BCS 5.5. However, while BCS is important it doesn’t appear to be relevant in the first month after calving. Research shows animals which calve with a BCS 5 will achieve a sixweek in-calf rate of about 78%, while those with a BCS 4 will achieve 74%. “For the first four to five weeks after calving you have no control over the BCS loss of a cow that’s healthy – it’s all

Myth busted in Inside Dairy ROCHE HAS written a ‘myth buster’ article in DairyNZ’s latest Inside Dairy dealing with the feed and fertility link. The myth presented is glucose being important for the development of the cow’s eggs, hence starchbased concentrate should be fed in early laction. Roche’s response is that this is only partly true. Feeding starch based concentrates will increase the cow’s levels of insulin and another hormone, IGF-1. These hormones make the egg follicle on the ova more sensitive to other hormones that help it grow, and ovulate, i.e. release the egg so it is available for fertilisation. “The logical conclusion, therefore, is that if you feed starch based concentrates in early lactation, development of the cow’s eggs is improved, she cycles earlier and, as a result, she is more likely to get in calf. Unfortunately, this is not necessarily true,” writes Roche. The reason is blood IGS-1 concentrations in early lactation only explain 3% of the variation in time taken for cows to cycle. “In other words, 97% of the variation relates to things other than blood IGF-1.” Dairy NZ data shows supplementing cows on grass with starch or sugar doesn’t increase blood IGF-1 until three to four weeks after calving, and has no effect on when cows cycle, or conception rate. “There is also evidence increased blood glucose – a consequence of feeding starch or sugar-based feeds – in early lactation reduces pregnancy rate at three weeks,”’ he adds.

genetic.” The impact of cows gaining weight through the breeding period, with the use of supplements, also has little impact on the six-week in-calf rate. However, he insists it is

better for animals to gain weight at breeding time. “I simply want to stress that nutrition is not the reason why empty rates have risen from 5% to 15% over the past 10 to 15 years on many farms.”

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machinery & products 39

Durable boom stood long test the Duraboom was “fast forwarded” on the company’s sprayer trash tester, designed to simulate the fully loaded sprayer traveling at about 20km/h while driving over a 200mm high bump. “We put the Duraboom through 30,000 cycles on our tester and it showed no sign of fatigue and only very small signs of wear. These results give us the confidence to call it Duraboom.” Buyers may specify their required options, such as laneway nozzles (to spray the fence lines of laneways while you’re

DURABILITY AND versatility are foremost in Hustler Equipment’s new Spraysmart 6m and 8m wide Duraboom, designed and made in the company’s Hastings plant. Marketing manager Brent Currie says the boom is a “leap ahead in durability – as the name suggests – and versatility.” “Our aim with this boom was to provide a premium manual folding boom for tough New Zealand conditions, to last a lifetime, and to make it capable of handling other tasks.” Currie says testing of

travelling to and/or from a paddock), Supajet fertiliser nozzles (to increase spraying efficiency and swath width while spraying liquid fertilizers), fence line nozzles, and built-in foam marker mounts making for easy fit-up later. Hustler says the Duraboom’s design has resulted in “minimal” welding, to reduce the number of fatigue points. It uses lazer cut and folded components, tapered pivot pins to eliminate flogging, and hi-tensile steel to keep the weight low while not compromising durability.

“30,000 cycles on our tester and it showed no sign of fatigue and only very small signs of wear,” says Hustler, of its new Duraboom.

New EID stick reader TRU-TEST THIS month launches a new stick reader – the XRS, “the result of extensive R&D and the purchase of electronic identification specialist EDiT ID.” Sales and marketing manager Verne Atmore says farmers will see an immediate difference using the XRS. in accuracy, speed, battery life, user comfort and reliability. “EID recording and measuring of livestock is becoming commonplace, and with the introduction next year of NAIT for cattle, [the technology] will become even more prominent. “This means the stick reader [will go from] a novelty to a necessity – a piece of kit that will be used more often than, for example, a drench gun or a shearing hand-piece.”

Tru-Test has taken a leaf out of the book of mobile phone manufacturers, Atmore says. As with mobile phones, the key is intuitiveness, applications, ergonomics, and gains in reliability and battery life. Tru-Test technical specialist Craig Foote describes the XRS as “way ahead of the rest”.

“It’s a huge difference. It’s quicker reading tags than anything else on the market – its virtually instant and this saves lots of time in a day, as well as helping maximise reliability on both types of tag. “Its intuitive, simple easy-to-follow menu coupled with lightness and ergonomic design means you can use it all day without any stress or strain. “Then there is an array of new functions like an alert that allows you to find a pre-selected group of animals from within a flock or herd that is being scanned.” The XRS Stick Reader is available from all rural retailers throughout New Zealand.

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Rural News // november 1, 2011

40 machinery & products Durable boom from page 39

The autoreset breakaway is strong enough to allow spraying in hilly terrain but not so strong that damage occurs when hitting a fence or post. Nozzles are fully shielded to minimise the need for replacements. Stainless steel nozzle tubes carry the anti-drip nozzle bodies. Hustler mostly fits the Duraboom to its Target range of sprayers with capacities of 600-1000L. These have a built-in, adjustable volume Turbo agitator capable of handling fine particles and liquid fertilisers. The Duraboom can be retro-fitted to existing sprayers. Tel. 0800 487 853 www.spraysmart. co.nz

3 3 3 3 3 3 3 3 3 3 3 3

CVT easier on pocket, body OUTSTANDING FUEL efficiency and constantly variable transmission (CVT) seen in a friend’s Fendt 818 tractor exerted a strong attraction on hedge mulching contractor Graham Hyland, Pukekohe. After a serial assortment of six tractors, in 2008 at National Fieldays he was ready to order a Fendt 714, reports distributor AGCO. “I’d driven a friend’s Fendt and liked them. I did a lot of homework and decided it was the one. The fuel efficiency is outstanding.” He made up his mind following a stint mowing alongside another contractor, both machines pulling 3.2m mowers. Hyland was driving an old 120hp tractor, the other man a Fendt 818 (180hp). “Mine was using 26L/h,

his was on 18L/h,” Hyland says. “With the Fendt our fuel bill is now considerably lower.” And he runs the Fendt at lower revs: his does 50km/h on the road and sits at about 1600rpm. His previous tractor did 40km/h at 2300rpm. “Just that’s a big fuel saving. Road speed is vital because we cover a big area, out east to Hunua and as far south as Cambridge. And the Fendt is a lot quieter and more peaceful to drive.” Hyland says he likes the comfort. “It’s got front suspension. You can spend the day in it and not feel joggled around. My previous tractor was a good machine but it was hard riding. The only suspension was the tyres and some of the roads are pretty rough around here.” And because he has a “dodgy” left knee he likes

not having to use a clutch: the Fendt’s Vario transmission is controlled by a joystick. Nine months of the year he uses the machine to cut hedges. “The transmission is ideal; you can vary the speed and never be in the wrong gear. Previously we had our tractors fitted with creeper transmissions to be able to drive at less than 1km/h. That’s not needed with the Fendt. “It’s always in the right gear and can crawl along without creepers. After hedge cutting with a Vario, there’s no way I’d go back to a manual. It’s effortless.” He likes the traction too, says AGCO. “With the Vario transmission, you can have it so it’s just driving; whereas with a normal tractor it would break into a wheel spin and bury itself. This tractor will

Vario transmission and 1300rpm engine speed at 1km/h has Pukekohe hedge mulching contractor Graham Hyland sold on Fendt.

climb out of places you think are near impossible.” He says some people think using Fendt on

hedge cutting is overkill but it makes the job easier. “I’ve been doing it a long time and at the end

of a day I don’t have a sore knee or a cramped neck.” Tel. 027 270 8027 www.agco.com.au

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machinery & products 41

DM, nutrition is ‘clearly ahead’ as twin-belt drive or the company’s Gearmower 3-in-1 Multicut mulcher series – all gear drive, so no belt worries and full power transferred to the cutting edge. “Cut quality is of the highest standard; the topper range has replaceable cutter tips and tip speeds up to 5500m/min, said to better or equal anything else available. Fieldmaster says its new 3-in-1 Multicut rotary mulcher/mower – versatile and productive – has become very popular because of its effectiveness in grass mowing, and stubble and rubbish mulching – including rushes, broom, re-growth gorse, etc.

retarded patches and controls unwanted paddock weeds such as ragwort, docks, thistles, etc. Fieldmaster offers what it believes is New Zealand’s largest range of topping and pasture management equipment. Smaller machines include ATV-towed toppers and three point-linkage models from 1.2m wide, the largest include broadacre 4.5m wide trailing ‘bat-wing’ contour-following models. This range “gives wide choice, enabling custom matching of machine to task, terrain and tractor horsepower,” the company says. The variety allows for such customer preference

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198

TOPPING PASTURE to 100-150mm high ahead of cattle gives a proven result of better dry matter ratio and nutritional content, says topper manufacturer Fieldmaster. And there’s a bonus, the company says: seed head control in weed and grass species, leading to cleaner pastures without herbicide use. Meanwhile, topping behind the herd – “popular with many farmers,” says Fieldmaster – requires mowing down to 30-50mm, best performed by a purpose-built topping machine, which keeps the operator and tractor clean. This spreads manure pats, restores even grass growth, leaves no

The company bills it the only machine on the market that can be fitted with three different types of blades to tackle pasture management. A Huntly operator has commented “if you have a machine that will do three jobs and all you have to do is simply change the blades, that’s a good machine.” Design and construc-

tion features include modular construction with 5mm or 6mm monocoque steel decks with doubleskin reinforced sections, rugged, reliable drive lines and Super Ag gearboxes.

The toppers are garnet blasted, zinc primed and powder coated. “Primer and topcoat are baked on for good looks and durability. Testing includes 600 hours

of salt water scour testing, giving every machine the protection required to handle the extremes of the New Zealand farm environment. Tel. 0800 500 275

Rural News // november 1, 2011

42 vintage

Massive effort restores veteran tractor Hinds, Canterbury. Robertson owns and drives a similar ‘iron horse’: a later, but related, example – an International 8-16 kerosene tractor made in Chicago. Higgins’ machine has a well-documented history. The first single speed (F/R) ‘friction drive’ model appeared in 1906, and a second version in 1907. Then came Type B and C, and Titans and Moguls.

JAN AND Joe Higgins (picture right) of Tapawera, Canterbury, own and drive the world’s sole remaining International Type A (1913) production tractor. The only other known example is in a Canadian museum. Higgins fired up their machine at Labour Weekend for the bi-annual vintage get-together organised by Don Robertson (picture below), of Robertson Manufacturing, at

Higgins’ is a third version of the Type A, transmission 2F/1R, driving through a flywheel clutch. The last was made in 1918, overtaken by more modern, smaller designs. This tractor was bought in Auckland by the Chaytor family and driven to Nelson, cutting wood along the way. Joseph John Higgins (1877-1960) in 1920 bought the tractor from Chaytors,

MAKES OTHER POSTDRIVERS SEEM LIKE... LIGHTWEIGHTS

from a mill in the Rainey River. The machine remained intact, attending A&P shows in the late 1950s and early 60s, then it returned to the Tapawera farm of Bert and Peter Higgins, last running in the early 1970s. It grew grass for many years, then was restored. Joe began restoring parts in the 1990s. A “massive” amount of work was done in 2008 by Joe, Brendan and Peter. Americans got involved in 1998, when Peter and Mike visited a tractor show featuring IH in Rollag, Minnesota. They discussed their machine’s serial number with an expert and it has led to sustained contact with US enthusiasts.

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Rural News // november 1, 2011

mcintosh bros 60th celebration 43

Six decades of seizing the day TO N Y H OP K I N SO N

READING THE market, seizing opportunities and working hard – as a team – have brought McIntosh Bros Engineering, Palmerston North, a sustained level of market share. The company founded 60 years ago by Bill and

be a mechanic but when I left school I was a delivery boy for a hardware store.” Then, with Bryant trained as a fitter/turner, the pair in 1951 saw an opening for jobbing engineers. They set up in a back section, working in a shed they agreed to renovate as their side of a rent-

shop with the help of one carpenter. An early product line was Buzzacott sheep showers for Dalgetys, so were stock crates for trucks and general engineering. A staff member

who joined in 1961 was Gary Adshead, still with the company and foreman for many years. In 1964 they enlarged the building and bought a Hastings firm to make

‘Billy’ McIntosh

to page 44

[‘Since] the development days of feeder wagons in New Zealand... our innovations have been more or less continuous.’ Bryant McIntosh now employs 45 staff. Bill’s sons Brett and Craig, who joined in 1987, are also directors. Brett runs the farm machinery division, Craig the cranes and transport. Bills hails from Dannevirke but has lived in Manawatu since age 10. Leaving school “as soon as I could”, at age 15, he began his ‘apprenticeship’ in hardware. “I wanted to

Compact & multi-capable the Agrolux model offers the perfect combination of performance, reliability and low running costs. Ideal for a wide variety of work situations including haymaking, livestock management, light tillage and general yard duties.

free deal for six months. Then they moved to Grey Street, Bill recalls. “During this time we were mainly doing repairs: you name it, we repaired it. I had to learn quickly and I probably did a full apprenticeship in 18 months.” In the late 1960s they bought land beside the North Island main-trunk train tracks and built a concrete-and-steel work-

From all of us... McINTOSH BROS 60th anniversary will be celebrated early November in Palmerston North, with co-founder Edward James (aka Bill/Billy) McIntosh - still actively involved in the business - at the top table. Says son Brett, director, "No firm I know has a founding director still calling the shots and totally involved the way Dad is." About 230 guests will celebrate at a formal dinner with entertainment. Rural News Group congratulates Bill and Noeline McIntosh on this milestone and we wish them health and prosperity.

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Rural News // november 1, 2011

44 mcintosh bros 60th celebration

Seizing the day from page 43

stock crates in Hawkes Bay, which lasted until 1982 when all work was concentrated at Palmerston North. This prompted the purchase of 1.5ha more land as “we needed the extra to expand.” More stock crates then required cranes so the company

built its first on a Commer TS3 truck – then a second and third, until crane hire became a key part of the business. They made machinery and parts for Centrac, GDS bale handlers, Swift rear end loaders and Doring Implements. Star salesman Bob Potts (decd) joined 1973,

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suggesting they import a feeder wagon made by Saltnei Engineering, UK Says Bill, “It had a steel chassis and wooden sides. We saw a machine like this, built for our conditions, had big potential.” Their stars lined up: in the early 1970s a customer overnight cancelled a large manufacturing contract,

freeing a lot of capacity. Now came their own feeder wagon – and control of their own destiny. “The idea appealed to us.” National Fieldays proved a terrific showcase. “We took our first wagon to the 1973 Fieldays and after the first demonstration we were mobbed by farmers. Those were

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the development days of feeder wagons in New Zealand. Since then our innovations have been more or less continuous. We’ve been helped by a strong, loyal New Zealand dealer network and an excellent rep in Australia.” McIntosh Bros now makes feeder wagons holding 7.8m3 to 20m3, hydraulic farm trailers capacity 4.5t to 17.0t and single and double bale feeders. They also now make manure spreaders 7.5m3 to 9.5m3. The crane hire business took off in 1974 when they imported a 20t Kato and

mounted it on one of their own chassis, while continuing to build their own. Today they have three Hiab mounted and eight mobile cranes, capacity 5t to 140t. Craig and Brett enjoy their roles in this family company. Says Brett, “Dad and Uncle Bryant brought the business to a certain level and we want to maintain that progress with the same standards and principles.” Bill pays tribute to Noeline, his wife of 54 years, whose love and support have been foundational to their success.

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“Most impressive the way it tack les our Kikuyu; I started out with a good old Flailmaster slasher years ago … since then I have had a hay mow er, and then a traditional mulcher. -Now I’ve got a Flailmaster again!! It is interesting to see how things come in a FULL circle” - Northland Farmer

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Rural News // november 1, 2011

rural life 45

Farmers lead community water work HOW OFTEN do you get a roomful of dairy farmers, council officials and environmental advocates emerging from their presentations and discussions 95% happy and in positive territory? I had this pleasant, but not really unexpected, experience recently after attending the launch of the Rai/Pelorus (top of the South Island) fact sheet: Realistic Solutions to Real Farm Problems. It wasn’t unexpected because when land and agri-business owners are equipped to solve their own problems, they generally do. In 2000 the Rai Valley community was shocked to learn the effect farming was having on water quality. Participants in the Marlborough Sounds based Outward Bound programmes were being

affected by skin conditions when they swam and kayaked in local waterways. Council monitoring revealed E.coli bacteria exceeded contact bathing standards.

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The farmers met, facilitated by the Rai Valley Rural Women New Zealand group and the NZ Landcare Trust, to find some solutions in a nonthreatening and nonjudgemental atmosphere. It is often the women in a rural community who have the ability to draw people together from dif-

ferent sectors and interest groups to achieve a consensus and get something done. Rural women have a breadth of knowledge and a wide perspective of both business and community needs and, given the opportunity, are adept at using these qualities to achieve change. The Rai factsheet was described as unique by NZ Landcare Trust coordinator, Barbara Stuart, because it was designed and crafted by and for farmers. It offers realistic solutions to specific issues in the waterways concerned. The four actions for the catchment are: keeping stock out of waterways; adequate effluent storage; low rate effluent application to land; attention to nutrient management. Implementing these are key to help farmers meet

water quality goals and compliance regulations. The locals in the Rai have already bridged many stream crossings and planted riparian strips with the help of Rural Women NZ members. They established a nursery at the area school supported by Department of Conservation, Marlborough District Council and Fish and Game NZ. This brought in direct contributions to environmental awareness and action to the children and young people of the district. Now the “farmers as leaders” approach, supported by the Landcare Trust and the MAF Sustainable Farming Fund, has resulted in a userfriendly document which says that “the beneficial management practices shown in this factsheet take advantage of our expert knowledge of farm-

Rai Valley, Marlborough.

ing on this land, and were developed using a science ‘on tap not on top’ philosophy”. Could anyone argue with that? There was no visible disagreement with the intent of the factsheet at the launch meeting. The representatives from central and local Govern-

ment, Fish and Game NZ and Outward Bound, were all very positive. So, what of the 5%? At any meeting of farmers, there will always be a few grizzles, usually about costs. This one was no different. A couple of speakers, while not criticising the project, wanted to have

their say on the unshared cost burden of bridges and fencing, compliance and the ever depressing impact of regulations. But, most agreed that progress is all about building partnerships and taking responsibility for any, albeit unintended, negative environmental practices.

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Rural News // november 1, 2011

46 Rural Life / Rural Trader Game Animal Council Bill introduced LEGISLATION TO provide a “strong voice for hunters” has been tabled in Parliament by Conservation Minister Kate Wilkinson. The Game Animal Council Bill will be eligible for its first reading when Parliament resumes and, if passed, will formally establish a Game Animal Council overseeing management of tahr, chamois, deer and pig. It will also promote hunters’ safety, improve hunting opportunities and make recommendations to the Minister of Conservation. The minister may also delegate to the council specific management functions for particular herds or game animals in certain locations. Creation of a Game Animal Council forms part of the National Government’s confidence and supply agreement with United Future. The bill is available at www.parliament.govt.nz.

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Asparagus Salad Boil or steam 1 large bunch asparagus, woody ends removed, until tender. Serve in one of the following ways: Arrange asparagus on individual plates lined with endive or lettuce. Mix 1 tablespoon chopped parsley, sieved yolk of 1 hard boiled egg and the chopped white. Sprinkle over asparagus. Grate cheese finely and sprinkle over salad. Use French Dressing (see below) Garnish with highly seasoned, sliced, steamed mushrooms. Dredge with paprika. French Dressing 4 tablespoon olive oil; 1 teaspoon salt; 1/2 teaspoon black pepper; 2 tablespoons lemon juice or vinegar, according to taste. Measure oil into a basin. Add salt and pepper. Gradually stir in lemon juice or vinegar, drop by drop, until thoroughly blended. Makes 1/2 cup - sufficient for four people.

• From: A Good Spread: Recipes from the Kitchens of Rural Women New Zealand. Publisher: Random House. Available online, at bookstores or through RWNZ. ISBN 978 1 86979 314 2 RRP $34.99

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Rural News // november 1, 2011

rural trader 47 FARM SECURITY CAMERAS

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Advantage Plastics Rangiora call: 0800 668 534 or (03) 313 5750

CRAIGCO SENSOR JET DEAL TO FLY AND LICE • Cost Effective • Complete Package • Unbeatable pricing • Performance Guaranteed

P 06 835 6863 - www.craigcojetters.com

343 Rodney Street, Wellsford (09) 423 7788 office@polandatv.co.nz

sales@southaucklandmotors.co.nz

Hewitts Motorcycles 27 High Street, Dannervirke (06) 374 7701 hewitts.mc@xtra.co.nz

Tramper/Hiker Padded Boot Soft Toe This is the boot specifically designed for the great New Zealand outdoors with the emphasis on rugged construction and long wearing comfort. The upper consists of thick water repellent high quality leather, a turned out upper complete with a full bellows tongue for added water-tightness. This is complimented with soft leather heel padding, a leather in-sole, a rubber midsole and a cleated replaceable rubber outer sole. This is the boot you can trust when the going gets tough. Sizes 4-15 including half sizes.

Lastrite Footwear Manufacturer

48 John St, Whangarei, 0800 4 BOOTS or 09 438 8907 (26687) Visit www.lastrite.co.nz for more quality products

• Industry-leading power • Best fuel efficiency • Advanced ergonomics and safety and a choice of over 50 accessories

231 Manukau Rd, Pukekohe 09 237 0490

parts@mcindoegroup.co.nz

Yardmate Soft Toe This is the boot that is designed for heavy duty uses and is perfect for fencers, high country farmers and hunters walking through tough, rugged, country. With an upper constructed from thick full grain leather, an insole and mid-sole, which are brass screwed and stitched, a cleated rubber repairable sole, a tough heel counter for better ankle support and a full bellows tongue for greater water tightness, this boot will handle the tough environment. Yardmate also available in Steel toe. Sizes 4-15 including half sizes.

New Can-am SSV by BrP

South Auckland Motors

44 Waitete Rd, Te Kuiti (07) 8785026

FOR 3 GENERATIONS, FEMALE & MALE RANGE

75% Work 75% Play

Poland Motors Ltd

McIndoe Group Motorcycles

FARM BOOTS KIWI MADE

In addition to an abundance of power, BRP created the Can-Am Commander side-byside vehicle for comfort, safety and convenience. Removable seats with integrated hand rests, adjustable tilt steering, passenger handholds and grab bars, dual-level cargo box, D.E.S.S. key selection to limit speed, and quick-attach side nets. Designed and engineered in Canada using European Rotax V-twin power providing for the best possible combination of work and play! Immediate delivery if you are quick from your Can-Am SSV dealer

• 800R $19,274 plus GST • 1000XT $22,476 plus GST

Taranaki Motorcycles 337 Broadway, Stratford (06) 765 6942 taranakimc@xtra.co.nz

Dwains Service Centre 7 Northumberland Street, Tapanui (03) 204 8455 dwains@xtra.co.nz

Marlborough Trials Centre 53 Grove Road, Mayfield, Blenheim (03) 579 2500 montesa@trialsnz.co.nz

Hubbards Machinery 247 Alford Forest Rd, Ashburton (03) 3083539 ian@hubbardsmachinery.co.nz

Engineered to exceed your expectations 3,350kg

TOWING CAPACITY

DYNAMIC STABILITY CONTROL

Ranger 4WD XLT Double Cab Wellside shown with accessory sports bar. 1. Only when fitted with genuine Ford Heavy Duty Towpack. 2. Available on automatic transmission models only.

ford.co.nz