Rural News Jan 2012 by Rural News Group

High wire worries

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Rural NEWS

stag sales Averages are up as buyers chase top genetics.

page 10

to all farmers, for all farmers

january 24, 2012: Issue 507

www.ruralnews.co.nz

Euro zone crisis fears overplayed? p e t e r bu r k e

NEGATIVE TALK about economic problems in Europe affecting New Zealand could become a self-fulfilling prophecy, warns Beef + Lamb New Zealand chairman Mike Petersen. Some people seem to want to talk down the price of our lamb, especially in the UK, but the reality is there is no surplus of quality food in the world today. “There’s definitely been pressure in the market to the higher prices being asked, but at the end of the day it appears stocks have cleared as well as expected.” Retailer discounting has helped. “The result is the sales have been quite solid rather than spectacular, throughout the Christmas season.” Petersen says he’s not worried about the discounting strategy because retailers do it all the time for a variety of reasons to get customers

into stores. They know they attract customers who will buy other goods as well. “I think the margins on lamb have been pretty high for the retailers and now they are having to trim these. This will benefit the New Zealand farmer and to be honest I think that’s a good thing. I have never heard an importer yet tell me they have been buying lamb too cheaply.”

In 2011 New Zealand filled only 85% of its quota to Europe but if people in Europe and the UK aren’t prepared to pay the price to ensure viable farming in NZ, then we have to sell elsewhere, says Petersen. Silver Fern Farms chief executive Keith Cooper says the Euro zone crisis is all about ‘currency’ and New Zealand dollar appreciation against all our major trading partners’ currencies. That will

have some impact on farm-gate prices. “The key point is over the last three years since we’ve had this global scene on our hands prices for all New Zealand lamb, beef and venison products have increased and that’s probably due to decreased production. “I don’t see any of that changing. The world is still searching for protein. The demand continues to increase and supply continues to languish.”

Bumper yields of barley and grass seed are on the cards in Canterbury, but elsewhere the picture’s not so bright. Harvest wrap p46

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Look at Asia says KPMG pa m t i pa

EXPORTERS SHOULD turn more to Asia as Europe faces increased risk of widespread recession, says Ian Proudfoot, KPMG’s head of agribusiness. High-value exports to Europe such as specialist dairy products, prime lamb cuts and wine are likely to be hit after Standards & Poor’s downgrade at the weekend of nine Euro zone countries, he warns. In contrast, New Zealand’s exports to Asia are general commodities and we need to look at how to get better value out of them, as money gets tight in Europe. “What we haven’t seen in Europe yet are the austerity measures that will be necessary. Britain has started, but a number of other countries need to go there in a big way. “If France defaults then the whole thing gets pretty difficult. If it doesn’t deteriorate from where it is at the moment, and the US economy seems to be getting a bit of growth, then things should pick up. If we get a full-blown recession in Europe then I think we are in a difficult position as a global economy.” With higher cost of debt, the French Government faces increased challenges to refinance to page 3

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news 3 issue 507

www.ruralnews.co.nz News �� 1-19 World �� 20-21 Agribusiness �� 22-23 Markets �� 24-25 Hound, Edna �� 26 Contacts �� 26 Opinion �� 26-28 Management �� 29-33 Animal Health �� 35-39 Machinery and Products �� 40-45 harvest wrap �� 46 Rural Trader �� 46-47 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

MAF restructure enacted today PETER BURKE

TODAY (JANUARY 24) is the day of the enactment of MAF’s restructure, following its July 1 merger with Ministry of Fisheries, and director-general Wayne McNee is promising the revamped organisation will be more tightly focused. “We have a big policy shop so we have tended to do a whole lot of everything and as a result haven’t delivered as well as we’d like to. “I personally like to focus on deliverables and have a reputation for making sure people are held to account in doing what they promise to do.” While biosecurity and water quality are big issues for MAF, so is improving primary sector production. McNee

promises to review its regulatory framework. “We are by far the biggest regulator in government and regulation has a cost as well as a benefit. We will be putting a big focus into minimising the impact of our regulation.” He wants MAF to play a greater role in ‘leading the courageous conversations’ on hot topics such as water quality and animal welfare. “We need to be talking to the various sectors about issues and to be fronting some of this in public. We need to be more proactive in the media and present a ‘MAF view’ on some of these issues.” McNee says MAF will also focus on is ‘technology transfer’, also in respect of food safety. In talks with Chinese delegations he has heard them

Look at Asia says KPMG from page 1

borrowings which brings the issues in Europe into further focus, and increases the likelihood of some degree of global recession in 2012. “The extent New Zealand experiences this will depend on how effectively domestic demand in Asia (particularly China) continues to drive growth in this region as demand for goods in Europe falls. “If the Asian economies continue to grow, it is reasonable to assume they

will continue to suck in the food and resource exports from Australia and New Zealand and this should shelter us from the worst of the fallout of a downturn in Europe.” Proudfoot recommends farmers continue reducing debt in the next 12 months with the global situation so volatile it is hard to predict. Dairy is strong but highly indebted. “I advise farmers to lock in rates and build business around rates that are locked in.”

emphasise the critical importance of food safety for their market. He also expects MAF to work hard on trade negotiations. With the advent of Free Trade Agreements (FTAs), MAF has a huge role in the actual negotiations and in policy development once the deals have been signed. Maori agriculture is another priority this year because of its “enormous potential”. A new 30-person group, including fisheries personnel, is now working in this area. “We are putting in place a good programme working with the Maori trustee and other Maori agribusinesses. Some, such as Miraka, are already successful and we are trying to identify what we need to do to help the rest. One issue is the structure of Maori land ownership. We are

also working with the Federation of Maori Authorities (FOMA) to improve technology transfer and get the wider Maori agribusiness sector to understand the opportunities that exist.” McNee generally is pleased with how the restructuring has gone. Most job losses have been in the ‘back office’ (corporate area); front line staff such as biosecurity and fisheries have not been affected. Now the focus is on building new integrated finance, HR and document management systems and the creation of a new ‘culture’ for the organisation and making sure staff provide quality service.

Wool’s slip not start of slump A DROP of 12% in wool prices in the space of three auctions doesn’t mark the beginning of the end for recent firmer markets, says Wool Services International. Marketing executive Malcolm Ching told Rural News the Euro zone crisis, rising New Zealand dollar and Chinese New Year have “taken the edge off the high, but the market is not crashing.” “Whenever you get rapid lifts in any market there comes at some stage a resistance and we’ve been battling that resistance for a few months. Then you have other factors such as the Euro zone, the strength of the New Zealand dollar and market confidence. It’s taken the edge off the high but we haven’t collapsed. Long-term the demand for wool still looks quite good.” • For more see www.ruralnews.co.nz

Rural News // january 24, 2012

4 news

Milk pumping despite weather SUD ES H KI SSUN

MILK PRODUCTION remains 9.5% ahead of last year despite a recent spate of bad weather, says Fonterra. Good grass growth in all regions, except lower South Island, is boosting production. Southland, which this month received its first substantial rainfall in six weeks, will take time to recover, says Fonterra general manager milk supply Steve Murphy. However, drought is not the only weatherrelated issue facing Fonterra farmers. In Nelson and parts of Bay of Plenty, heavy rain was causing issues. Fonterra was unable to pick up milk from some farms in these regions due to flooding. Murphy says weather volatility is of concern. “While the overall picture looks good, too much rain in some regions

causes problems for individual farms,” he told Rural News. While it’s too early to predict how the season will end on May 31, Murphy says the recent rain points to a better one than last year. “There is potential to continue good milk production.” However, in Southland and Otago, the recent rain will not resolve feed issues. DairyNZ says careful management decisions still need to be made over the next month, despite the good amounts of rain in Otago and Southland. DairyNZ Otago/Southland regional leader Miranda Hunter says farmers need to make the most of the recent rain. “While it is good to receive the rain, for most farmers it is going to take a few weeks to manage their way out of the current feed situation, assuming we

get good levels of follow up rain. “Decisions over the next few weeks will focus on rebuilding pasture cover and protecting cow condition. There is a lot of the season left to make the most of.”

DairyNZ consulting officers held seven dryconditions events in Otago and Southland last week, and 390 people attended. Farmers were told to target rotation length of 25 – 30 days, using supplement to do this as a longer

Shipping a container every 2.7 minutes FONTERRA LOADED an export container every 2.7 minutes in December, smashing its previous top monthly tonnage tally. Continued demand growth and record early season milk production saw 246,000t shipped, 7.4% more than March 2011 when 229,000t was loaded. Fonterra trade and operations managing director Gary Romano says South East Asia, China, the Middle East and North Africa are driving the export growth. “Dairy is becoming increasingly important in these markets as people grow wealthier and want access to more nutritious foods.” On the production side the peak was about 10% up on last year, at 80 million litres/day. “Our teams have gone the extra mile to manage the huge amount of milk this season and get value out of every drop.”

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rotation grows more pasture. “Calculate how much supplement you will need to cover the next three weeks. This will allow covers to build in front of you and may create the opportunities to gain surplus at higher growth rates,” says Hunter. “Now over 25mm of

rain has fallen and followup rain is forecast... consider applying 30-40 units of N to help build pasture cover. “Animal body condition needs to be monitored over the next two weeks and any cows with a BCS under 3.5 need to be considered for once-a-day milking.

“Young stock also need to be checked regularly to ensure they are well fed, drenched, managed for facial eczema and receive necessary minerals.” When moving animals to grazing or culling it is important they are fit for transport. Guidelines are available on the DairyNZ website.

Fonterra takes TAF on road SU DESH KISSUN

FONTERRA FARMERS are cautiously welcoming new options from management on its proposed share trading scheme. However they are wary the devil will be in the detail. Shareholders will be briefed on TAF (trading among farmers) next week in 50 meetings nationwide. Ashburton farmer Eddie Glass, heading a group of Canterbury shareholders opposed to the transfer of share legal titles to a custodian, wants more Eddie Glass information. “There is just not enough information out there right now.” Fonterra has acknowledged concerns over the proposed custodian in TAF. It will put three options before farmers next week: the current custodian proposal, a second option that offers some important changes to the current proposal, and a third option which gives legal title to farmers. Glass says it’s a good start but wants more details. “Yes, we are happy there are three options on the table but there is some way to go yet,” he told Rural News. “The devil could well be in the detail.” Fonterra chairman Henry van der Heyden is keen to kick off TAF before he steps down at the annual meeting in November. He told shareholders in a preChristmas television broadcast that TAF was on track for introduction at the end of this year.

However Glass believes the process should not be rushed. TAF is complicated and the average farmer doesn’t understand, he says. “We are concerned that the chairman is adamant to drive it through this year. There shouldn’t be any hasty moves. If it takes another year for farmers to get their heads around it, so be it.” South Canterbury dairy farmer Leonie Guiney, another TAF sceptic, says the December 16 broadcast “had no update in it.” For nearly two years Fonterra’s board and management have been saying the TAF proposal will retain 100% farmer owner and control, but with the asset corresponding to shares showing on the unit trust’s balance sheet, unit holders, ie outside investors, would have legal rights under company and trust law to expect trust managers to act in their best interests. In effect that would maximise dividend and minimise milk price, explains Guiney. “Now we have been told [Fonterra management] has three more options, the detail of which they are working on, and one of them is leaving the current proposal as is. “How can Sir Henry keep repeating ad nauseam the line about 100% ownership and control and leave the current proposal on the table?” The shareholder meetings begin Monday January 30.

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news 5

Water number one for minister Last year he was Minister of Agriculture; now he’s Minister for Primary Production. David Carter – complete with new title and bigger portfolio – is a happy man. Peter Burke asked him about his priorities and plans order paper. “I would have loved to have had all my legislation passed but I’m working with the Leader of the House now to give a real priority in the new parliament to get that stuff passed. I have no regrets about the past three years. I set some clear priorities at the start of my term and by and large we’ve made satisfactory progress with all of these.” Carter is adamant that dealing with waterrelated issues is at the top of his agenda. “Runs on the board are more areas of New Zealand farmland reliably irrigated. During the election campaign we announced the formation of the $400 million water holding company which would co-invest in other projects. So that was a big ticket item to get away in a tight fiscal environment. “We’ve made a lot of

Guy appointment fuels speculation THE APPOINTMENT of Nathan Guy as Associate Minister for Primary Industry has fuelled speculation David Carter may be heading for Speaker of the House. But while Carter has the credentials for such a position, he told Rural News he’s not aware of any such moves notwithstanding the anticipated appointment later in the year of current speaker Lockwood Smith, a Belgium Blue cattle breeder and former television presenter, as High Commissioner to London. Carter says Guy, who has a farm in Horowhenua, will be working closely with him in all aspects of his work as Minister for Primary Production so that he “understands the sector and the challenges it faces”.

progress in water discussions in Hawkes Bay, Wairarapa, Canterbury, Marlborough and Otago. It’s now a matter of working with the promoters of those schemes to bring the projects to fruition to get more hectares irrigated,” he says. Carter says such schemes have potential for roadblocks when the resource consent process starts, but many regional councils are positively engaged in the process, he says. He is hopeful the dis-

cussions with stakeholders at the start of the consent processes will smooth the way for approvals. The other major priority for David Carter in the new parliamentary term is, not surprisingly, biosecurity – an subject which continues to cause much angst in the primary sector. Late last year MAF’s approval and subsequent back-track on the importation of strawberry seeds from China was one on a long list of sagas. Carter says he sees

progress in understanding what the Government is trying to deliver via Government Industry Agreements (GIAs). “It is about working more collaboratively with industries so we avoid incursions; and it is certainly about making sure mistakes such as the strawberry importation do not happen.” Despite these problems, Carter says he has confidence in MAF, especially considering the potential for unwanted incursions every day. “By

and large MAF does a good job, but mistakes such as the strawberry incident do occur.” He is quick David Carter to point out that see more rigor in the scisome problems have ence relating to biosearisen in the context of curity. “I guarantee you ‘best science available at have [in me] a minister far the time’, which – possimore focused on biosecubly in the case of PSA – rity than for many years, was subsequently proved and you have a directorwrong. general more focused than He says he and the perhaps we’ve had in the director-general of MAF, past.” Wayne McNee, want to

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DAVID CARTER says he’s delighted to be the Minister for Primary Production, saying he wasn’t able to get everything done in the past three years and hopes to get this done in the new parliamentary term. Significantly he’s now the Minister FOR Primary Production and this includes fisheries, given its merger into MAF. (Food safety remains with Kate Wilkinson.) The word ‘for’ has special importance, given Fed Farmers made much to-do about the minister being ‘for’ rather than ‘of’; Carter is happy with this. He says his two major priorities for the next three years are water and biosecurity, plus pushing through legislation which didn’t make it in the last parliament. A lot of legislation to do with NAIT and biosecurity got stranded on the parliamentary

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Rural News // january 24, 2012

6 news

Unity call from growers’ leader pa m t i pa

‘UNITED WE stand’ will be Neil Trebilco’s theme as he takes on the daunting task of heading an industry group facing crisis. The Katikati grower was elected president of NZ Kiwifruit Growers Inc in December, taking over from Peter Ombler.

He knows the next two years will be tough, but believes in the future of kiwifruit. “The number one thing is, we must stay together – united we stand, divided we fall,” he says. “The biggest strength of the industry is that we are united.” A priority in his role will be to make sure sup-

port systems – financial or psychological – are in place for the growers to help them through. He believes if the growers can stand together, research with agri-chemicals and new varieties will provide the answers. Trebilco bought his first green orchard in 1996, and now also has

“The number one thing is, we must stay together – united we stand, divided we fall.” gold, organic green, some new green varieties, kiwi berry and small areas of G14, G3 and G9. He is not affected by Psa yet, but is constantly checking and

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Neil Trebilco

knows the writing is on the wall for all Gold Hort 16A, as advised by Kiwifruit Vine Health. He says kiwifruit has an advantage over other

fruits: a large genetic pool and varieties with different tolerance to the bacteria. “Because of the cooperative nature of the industry we have a very large plant breeding programme – easily the largest in the world. The combination of those things means we will find a way through this and it probably will be through new varieties, particularly in regard to 16A. “It doesn’t mean things won’t be difficult over the next year or two for growers, particularly gold growers – if your plants are dying, you are not going to produce a crop.” Changing varieties isn’t an overnight solution either. New varieties are grafted during winter, and bud wood production has to be increased in preparation. “One year’s crop is lost with regrafting, with the following year having a 70-80% crop.” Several new varieties are in the pipeline but will take time to test, not only gold but also some green, which are even more Psatolerant than Hayward. Trebilco thinks some growers believe they are going to get through with Hort 16A, particularly with new agrichemicals

that weren’t available 12 months ago. He says an important role of Kiwifruit Growers is to help its members understand the issues and manage transition. “I have opinions about the way things should go but so do other growers and they are no less valid. We need to make sure we have as much information out there for growers as possible so they can make their own decisions. “Whether they graft a new variety or not will be up to individual growers. There may be some growers who think they can survive with 16A; that is their decision”. Meanwhile growers face increased costs in sprays and orchard hygiene, with tight margins for green kiwifruit, particularly with the Euro exchange rate. But the new president is buoyed by hope for growers. “We’re waiting to see what happens with the new gold variety; if it comes through summer that’ll give the industry great encouragement. There’ll be a drop in production for a year or two but potentially if new varieties work, the prospects are not too bad.”

Westland a business award finalist SOUTH ISLAND dairy processor Westland Milk is among 26 finalists in the 2012 New Zealand International Business Awards. The farmer-owned cooperative is listed in three award categories: over $50 million turnover; best commercialisation of intellectual property and best use of R&D in international business. Chief executive Rod Quin says it reflects the calibre of the company and its exceptional export strategy, and that as an exporter Westland can foot it with the best New Zealand has to offer. He credits Westland’s international business success to placing customer needs at the forefront of all strategic decision making and the dedication and unity of its staff and shareholders. “We have great respect for the competitive environment our customers operate in and make it a priority to develop innovative product solutions for them.” Westland makes milk powders and fats, milk proteins and consumer and nutritional products for export.

Rural News // january 24, 2012

news 7

Mainstay gold variety written off Harvest forecasts

OUTPUT OF gold kiwifruit could drop by up to 50% this year, but the future of the present variety is even more dire. Hort 16A, the glamour fruit of the industry since the late 1990s, has probably had its day in New Zealand, Kiwifruit Vine Health general manager John Burke confirmed to Rural News. Although some growers may have not given up on the cultivar, Burke says the writing is on the wall. “From what we are observing that is probably the case,” he says. “We are still going through an observation phase but with the susceptibility of that particular cultivar (16A) to Psa we are really concerned about its future.” But gold kiwifruit’s future will lie with replacement cultivars and Kiwifruit Vine Health hopes to have a management plan by March. Burke agreed some growers may not have given up on the 16A but “the growers in Te Puke generally all accept that from what they are seeing on their orchards. “Wider afield there are some growers who are not affected or only mildly affected by the disease; perhaps thinking they might be able to keep going. Who knows, they might be able to but from what we are seeing in Te Puke that is unlikely.” Lab testing work has

GOLD KIWIFRUIT production is likely to drop from about 30 million trays in the 2011/12 season to between 15-18 million in the 2012/2013 season, with estimates finalised next month. Kiwifruit Vine Health general manager John Burke also predicts

shown Hort 16A is a lot more susceptible than the green Hayward variety and the new gold varieties G3 and G9. Field assessments are ongoing. “Fortunately we released those [G3 & G9] cultivars a couple of years ago so they are already out there – they test up to be a lot more tolerant to the disease than Hort 16A. So the challenge will be bulking up the bud wood for that to make available for growers. “The logistics we are working through at the moment – how they will be released to growers – and we probably won’t have a defined management plan for that until March.” Burke says 16A will be replaced over time, and growers won’t be told to cut out their vines. “There are growers who aren’t affected at this stage and we would want them to keep producing their Hort 16A. The biggest concentration of changeover will be in that Te Puke area where we have got that infection.” Many growers with the disease in Te Puke have already cut their vines off to the original stumps, and

only about 40% of Te Puke’s Gold crop will make it through the harvest this year. About 51% of Gold orchards are affected by Psa, as compared to 28% of all New Zealand kiwifruit orchards. Gold kiwifruit was first grown in New Zealand in the late 1970s

with Hort 16A developed by HortResearch in the 1990s and first exported as Zespri Gold in 1998. Burke says Zespri Gold represents about 20% of kiwifruit production. It is particularly sought after in Asia and assists the sales of green types.

the same but it just really depends on the level of infection on their property. But we would envisage over time they will all be doing it through New

will be looking to graft in winter. Others are trying to get through the 2012 crop then regraft. “Further afield a lot of growers will be doing

Zealand. “That could take several years – for growers who have healthy 16A vines it’s in their interests and in the interests of the

industry that they keep producing as long as possible.”

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Rural News // january 24, 2012

8 news

No rush to WTO over apple ban SUD ES H KISSUN

THE GOVERNMENT and New Zealand apple growers are giving Australian authorities time to sort out a ban on our apples announced by Tasmania. Trade Minister Tim Groser says there is no point in “rushing off to the WTO”, which last year overturned Australia’s long-standing refusal to accept the fruit on the grounds of fire blight risk. “The dispute is almost

90 years old and deeply emotional. We have to play this carefully,” Groser told Rural News. “It has to be sorted out by the Australian Federal Government.” New Zealand Ministry of Trade officials have been in touch with their Canberra counterparts since Tasmania’s state government announcement earlier this month. Groser says Australia is still bound by the WTO across all states and it’s up

to the Australian Federal Government to get Tasmania into line. He points out New Zealand has a strong commitment from Australia. Last year Australian Prime Minister Julia Gillard drew applause in the New Zealand Parliament when she said Australia would accept the verdict of the world ‘umpire’, the WTO. “It can’t get any better than that,” says Groser. He is confident the matter

will be resolved “sooner rather than later” but declined to discuss a timeframe. New Zealand apple growers have exported 150t to Australia since the ban was overturned late last year. Pipfruit New Zealand expects a jump in exports as new season fruit becomes available from next month. PNZ chief executive Peter Beaven says he hopes common sense will prevail and Tasmania will stop defying the Federal Government. While Tasmania is a small market, it’s a matter of principle. “If Tasmania gets away with it, the bigger markets like Victoria and New South Wales may follow suit and that is our worry.” Beaven is happy to give the Australian authorities time to sort out the issue. “At the end of the day, short of going back to the WTO, we are giving parties more time to resolve the matter.” Beaven says New Zealand apple growers reject Tasmania’s assertion our apples are a biosecurity threat. “I don’t believe for half a second that Tasmania has done any research to

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AVOCADO GROWERS’ returns per tray look like halving in the wake of New Zealand’s biggest ever crop. But grower representatives say the big crop has provided opportunities to push harder into new markets and work more collaboratively. Export volume has nearly doubled compared to the two previous seasons; four million trays were shipped compared to 1.7 million last year. That earned $65m, with growers getting about $20/tray, but this year that could be halved, says Avocado Growers’ Association and Industry Council (AIC) chief executive Jennifer Scoular. “Yield has doubled. We have only had about a 5% increase in orchard space each year – so orchardists have a lot more fruit although it’s returning half the value.” With 11 independent exporters competing, growers need to be aware “their own exporter will have performed differently from others.” Growers who have not had good yields this year, because of conditions or weather or because they are not using best practice, will be struggling, she adds. Scoular says the big crop was anticipated and through the council, exporters planned collectively in July and August to send 25% outside the main export destination Australia.

Rural News // january 24, 2012

10 news

Top stags drive averages up SALE AVERAGES are up for many deer studs this season as buyers bid big for top sires. But the joy hasn’t been all-encompassing, with a few sales, notably in the

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“But then when we got into the top of Otago, at Foveran, there was a lot of interest and from there on there was an almost total clearance.” That’s in contrast to three or four years ago when Southland sales

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Southern stag sales achieved near complete clearances, says PGW’s Graham Kinsman (inset).

were the ones struggling, he notes. “That’s because their core business is velvet and now it’s turned around Southland is the region making more money.” In what is becoming an increasingly twostream market – venison or velvet/trophy – buyers have been prepared to pay up for big beam, velvet genetics, especially those with good tops and the potential to breed top trophy, as well as velvet, stags. “With a velvet stag the return on your investment is good at the moment and if you pick up a trophy sale at the end it’s a double income stream. That said, body size is always paramount.” Sires with the best venison indices were also sought after and with many sales averaging around $4000, it “suggests

Blackforest back in sales circuit AFTER FOUR years out of the stag sale circuit due to a random couple of cases of TB, Blackforest, Otago, was back this year with 38 stags on offer at its impressive sales facility at Outram. “We’re pleased to be back and were delighted with the level of support we got,” stud principal Trevor Currie told Rural News. “One of the most pleasing things was we sold some of our best deer to other studs.” Top price was $17,000 paid by Peel Forest, South Canterbury. “It’s a very good stag and at a normal event might have got a bit more but given we are just back we were happy with that.” Currie says they’ll “certainly be back with a vengeance next year with a lot of bigger and even better growth rate animals.”

there were some very good venison animals in the sales,” says Kinsman. That said, buyers were “fastidious” – there had to be something that really appealed about a particular stag to take the bidding beyond the $3000-4000

mark, he adds. As of last week, with only a handful of sales left in the calendar, a stag from Sarnia, Waikato, was topping the takings table at $67,000, comfortably ahead of last year’s high of $40,000 paid at Stanfields,

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Rural News // january 24, 2012

12 news

Aviators call for fence feeder wire restriction PETER BURKE

AGRICULTURAL AVIATORS want electric fence feeder wires across gullies to be prohibited if they run more than 1m above normal fence height. “We’ve come to the conclusion that under health and safety legislation, farmers have got to provide a safe working environment as they are contracting the pilot to come into their property and perform a duty and some are not doing that,” says Andy Hogart, a member of the Agricultural Aviation Association (AAA) executive. Federated Farmers says it is aware of the issue and will be talking to the AAA about it (see panel) but Hogart says even where wires across gullies are marked, and farmers tell pilots of their presence, that’s no guarantee they won’t cause an accident. “They are barely marked and vir-

tually impossible to see. I am not convinced that even marking these wires will work. About 90% of the wire strikes that happen in New Zealand occur despite the fact the pilot knows the wire was there. “ So even if it’s marked and a farmer tells the pilot where the wire is, the chances are he’s going to bang into it at some stage,” he told Rural News. While helicopters are most at risk from wires, a recurring issue for fixedwing operators is airstrip quality. “The problem is [no] maintenance on these for years. Some guys class an airstrip as just another paddock, but it’s not. It’s an airstrip, and it’s there for a purpose, and it has got to meet certain standards,” Hogart says. Some airstrips have changed little since the days when Tiger Moths were topdressing in the 1950’s: they’re rough, short and inadequate for modern top

dressing aircraft that cost upwards of $2.5 million dollars. Fertiliser storage facilities often leave a lot to be desired, especially considering there can be another million dollars worth of equipment, besides the plane, on the farm when topdressing is taking place. The AAA wants farmers to take greater responsibility for the safety of pilots who operate on their properties, and suggests a slice of the resurgence in returns is invested in upgrading facilities. “We are in an invidious position, because if we say were are not going to work off a sub-standard airstrip we end up cutting off our nose to spite our face.” However, a quality airstrip will benefit the farmer because pilots can operate in a wider range of conditions and generally be more efficient and safer.

Feds aware of issues THE PRESIDENT of Federated Farmers, Bruce Wills, says his board is well aware of the problems being encountered by pilots operating out of substandard airstrips and the issue of wires strung across gullies. “In most cases farmers are aware of the problems that wires strung across gullies pose to ag pilots,” he told Rural News. “They are pretty good about letting pilots know if there are wires and putting high visibility material on these to warn them of the dangers.” The issue was discussed at Feds’ board meeting in December and Wills says he plans talks with

pilot representatives in the next few weeks. Feds representatives have also discussed the matter with fertiliser companies. Wills says he’s well aware of the benefits to both farmers and pilots of good quality airstrips. “Recently a senior pilot told me that he timed how long it took to load up on a good airstrip with a good turning area and good bin, and take-off again, compared with doing the same on a poor quality strip. He pointed out to me the savings that can be made.” Consequently Wills sees some merit in ag operators charging less for operating out of a good airstrip as opposed to a bad one.

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Rural News // january 24, 2012

14 news

Sector at odds over Food Bill pa m t i pa

VIEWS ARE divided on the threat the Food Bill poses to farm retailers after Food Safety Minister Kate Wilkinson sought to allay fears. Farmers’ Markets NZ says fears have been whipped up by social media, but Organics Aote-

aroa NZ believes there are wider concerns beyond small-scale trading. Wilkinson, in a statement, accused the bill’s opponents of “scaremongering” that the planned legislation would entangle small traders such as farmers’ markets and roadside stalls in costly red tape. “Small traders such

Food Safety Minister Kate Wilkinson

as those running roadside stalls or selling their own horticultural products at markets are generally classed as low risk and will not need to register,” she said. Farmers’ Markets chairperson Chris Fortune told Rural News this is new information from the minister but heading in the

direction his organisation expected. “There’s been a whole lot of stuff floating around social media and none of that has come from Farmers’ Markets as an organisation,” he says. A Farmers’ Markets representative has been in Wellington for three years liaising with the New Zea-

The implications of the Food Safety Bill for grower retailers like Sonya Haddock and Debbie Watts remain unclear.

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land Food Safety Authority on this bill which they welcome as modernisation of 30-year-old legislation, he says. “We have been actively involved in ensuring small food producers aren’t over-regulated in the new bill that will come into force.” They don’t want small food producers in the same category as multinationals or large food producers, he says. “We are basically an extension of the farm gate and that’s what we would like more clarification on. That is where the clarification is heading.” Fortune says the latest statement from the minister shows she understands there are different levels. Any legislation is open to amendments and must pass through a number of stages. “The amount of social media stuff going on at the moment saying food officers can enter into premises with guns and they can do all this sort of stuff… it is just stirring up enough interest to get people to sign a petition without having read or understood some of the processes.” However Derek Broadmore, chairman of Organics Aotearoa NZ, says despite the minister’s assurances, small traders are still included in the bill in its present form. “That may not be the intention but they are in there at present,” he says. Broadmore also says

the labeling requirements seem to be for the convenience of marketers rather than the producers or consumers. “We still won’t have country of origin labeling for instance and that’s a big issue for us,” Broadmore says. “The Food Bill seems designed to align New Zealand with the Codex requirements rather than to give our consumers better information.” Manufacturers can source products from anywhere around the world and sell them in a homogenised way without any indication of where they are grown, he says. For smaller growers there’s a strong argument to go the other way and ease up on restrictions. “We have stopped small growers from processing their own produce because they run up against issues such as safety plans and having to have a commercially approved kitchen when they are producing a couple of cheeses a week – it’s overkill. “That’s probably not strictly within the Food Bill, more to do with local authority requirements. “But these things work together against small producers being able to produce their own food and sell it as a personally and locally produced and marketed product.” Organics Aotearoa supports a call for the bill to come back to select committee.

Rural News // january 24, 2012

news 15

Implications start to dawn on growers ga r e th g i l l at t

MOST NEW Zealand vegetable and fruit growers seem unaware of the Food Safety Bill’s content but some are waking up to the potential consequences. Newspapers and Facebook have been flooded with debate on the bill which could create another level of red tape and extra costs for anybody involved with the creation and production of food (see main story). The bill has had its second reading, been through select committee and a three-month consultation process, yet, judging by Rural News’ calls, many growers don’t know it exists, and even if they do often they’re unclear about what it entails. Ruakaka organic vegetable grower Denny Clayton says he only heard of the bill this month, despite going to a Growsafe workshop organised by the horticulture industry early in 2011 to bring growers into line with some aspects of the food safety regulations. The bill could require small and medium-size growers selling direct to consumers to register as food businesses under the second of four stages of a national control scheme to create a ‘food

control plan’. This could result in busy growers facing extra paperwork and potential levy costs, and opening them up to fines or even cancellation of business licences. Clayton says times are tough for growers like him who have to make a little bit of land go a long way. “People tend to struggle especially through the winter and people are being careful with their money this year which means I have to do more to sell the same amount of vegetables.” Even a yearly fee in the thousands, as some believe the bill could lead to, would be enough to put people like him out of business, he says. Food Safety Minister Kate Wilkinson says the threshold for more onerous measures the bill proposes – including requirements to register and maintain food control plans – hasn’t been determined. She has sought to reassure small-scale growers. A select committee that looked at the bill last September suggested that whether or not a business employs anyone could determine the need for a food preparation plan. Max Wintle, owner/ manager of Kuntoro

Orchards, Wellsford, says if the bill means domestic produce sales require similar levels of paperwork as exports then it could result in whole sectors vanishing from Northland.

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Rural News // january 24, 2012

16 news

Top of South still counting BARBARA GILLH AM

TOP OF the South farms hit by December’s double deluge face massive costs and the question where to begin. Last month’s rain caused flooding and slips throughout Nelson and Tasman regions,

described by many as the “worst they had seen.” While farmers in Golden Bay’s coastal area faced slips and rising rivers that swept granite and debris across land, ripping out fences and blocking roads, those in low lying areas such as Glenduan, east of Nelson,

suffered floods that stripped pasture or blanketed it with silt. Warrick King, whose family has dairy farmed at Glenduan for 40 years, says flooding on the flats is not unusual but what made it worse this time was being hit with the first flood in mid December,

Before and after: The flats at Glenduan.

Before

then another so soon afterwards. “We were just peaking when the first flood struck,” he told Rural News. “Basically we dropped a third of our production overnight and that’s where we still are now, about a third down.” The flats are prone to flooding, being on the coast and 0.5m below sea level, but inadequate drainage, which King says Nelson City Council should address, exacerbates the depth and duration of the problem. “It can’t cope. This

time due to a combination of silt from the slips on the surrounding hills and the water heating up it took nine days for it to go. This is an ongoing problem on the flats and there have been discussions with council over the years but nothing has happened.” King says Gavin O’Donnell, Nelson’s provincial president of Federated Farmers, has been talking to council, as has DairyNZ, but nothing’s been done. “We need either big pumps or they need to put in more

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NELSON CITY Council was quick to respond when Rural News relayed farmers concerns. “We were working 17-hour shifts at a time, as was everyone else in the council and all our contractors” said Alec Louverdis, executive manager of network services for Nelson City Council and group controller of Civil Defence. “I think if we had more resources to go around we probably could have done more, but with the resources we had – and this is my own personal opinion – we did a pretty good job, and we certainly couldn’t get around to everybody all the time. “The people we did get to were the ones in greater need and we had to prioritise and act accordingly. I understand people’s frustration but... we certainly did everything possible in terms of resources. “Both the council and every conceivable contractor was out there; we certainly couldn’t have done more than we actually did. I understand the issues people had but we live in the real world unfortunately.” As for the drainage issues raised by the Glenduan farmers, Louverdis says council balances all projects in relation to a whole range of other projects around the region. “These are based on priorities and on terms of the annual planning and what councillors decide in terms of a rates rise and what they determine as priorities.” He wouldn’t comment on the Glenduan flats scenario specifically, but acknowledged “there have been issues.” “But equally there have been issues in other parts of Nelson and all of those are put into a pool when council evaluates what projects go ahead in any financial year. “Sometimes the councillors have to make decisions and it’s a hard job to make decisions to please everybody in the region.”

Rural News // january 24, 2012

news 17

storm’s cost 10 days after

culverts to get the water away when the tide’s out. “We pay a ridiculous amount in rates and get nothing back. Now I’m looking at having to regrass about 100ha which will probably cost me about $500/ha. It’s a lot of money and work.” Les Hollyman also farms the flats at Glenduan and echoes King’s drainage concerns. He estimates the floods may have cost him $200,000. “There’s been no help from council who take $20,000 a year off me in rates and they do nothing. “The only people who have contacted me are Gavin O’Donnell from Federated Farmers and Ian Blair from Rural Support Trust: he came over to see me but under EQC nothing’s covered and the insurance said I wasn’t covered so I’m going to have to take a closer look at it. There’s certainly no compensation. “I’ve only farmed this land for four years, but speaking to the previous owner this is the worst flooding they’ve seen over the years. It’s affected the pastures badly. “I don’t know what to do actually or where to

start. The trouble is the cooch [grass] is taking off so I might have to work it up and then grass it down in the autumn. That’s what I’m thinking of doing; trouble is I don’t know how big an area I’ve got to do.” When the floods came King had 500 dairy heifers on the property. Now 206 of those are grazing in Canterbury at a cost of $3000/week with the remainder farmed out on properties around the district. “The heifers are all signed contracts for delivery on the May 1 in 5.5 condition and pregnant so I’ve got to keep them going.” No overall cost of the floods has been released, but it seems certain to hit tens of millions, possibly hundreds. Mike Robertson, Wainui Bay, told Rural News he estimates a $1.5 million impact on his farm alone. Tasman mayor Richard Kempthorne says the recovery team are compiling a cost assessment with council engineers and building inspectors, but hadn’t made an estimate of the cost to the rural economy or community.

Cause of storm not the norm TASMAN DISTRICT Council hydrologist Martin Doyle says the cause of December’s storm was unusual for the area. “Storms in these regions normally occur as a result of a very warm north or northeasterly airstream that carries a lot of moisture and moves inland ahead of an approaching front from the Tasman Sea. “The approaching front and strong winds drive the rain-bearing air over local terrain and as the air rises it condenses and falls as rain, intensifying as it reaches hills.” In contrast, December’s storm was worst near the coast, apparently due to an unusually low layer of moisture laden air that was caught by the coastal hills. “The bulk of the rain fell over a 48-hour period and the sheer volume was exceptional. The most significant reading was taken at Takaka where one third of the town’s annual rainfall, 674mm, fell over two days.”

Not Australia: Les Hollyman on what was productive dairy land.

Rural News // january 24, 2012

18 news

Sheep’s back a sleeping dragon pa m t i pa

WOOL IS our ‘export sleeping dragon’, with the potential to become a major overseas earner again, says Federated Farmers. It was responding to a Statistics New Zealand report – Off the sheep’s

back – which gives an historical rundown on wool exports in New Zealand, showing the fibre has fallen to 1.6% of exports. But Federated Farmers is convinced it can be worth much more if the industry can get its local and international houses in order.

“Wool was worth $799 million in the year to last November and is arguably our export sleeping dragon,” says Jeanette Maxwell, Federated Farmers Meat and Fibre chairperson. It is still our 14th largest export earner. The industry faces roadblocks Federated

Farmers wants to clear, but wool’s natural and renewable properties are being latched on to by local innovators such as Icebreaker. “A growing global consciousness about sustainability works in our favour,” Maxwell says. Emerging economic powers such as China and Russia also value wool over oil-based fibres.

The Statistics NZ report also comments on productivity gains, showing in 1989 the lambing percentage was 102%, but in 2011 it had increased to 116%. Lambs had become on average 44% heavier since then and sheepmeat export volumes rose 9.6%. Petersen says there is a lot of comparison between sheep and dairy. “This is a story lots of people

wool timeline 1950s to early 1900s – Wool is New Zealand’s major export earner. 1951 – Prices spike with US Army orders during the Korean War. 1982 – Sheep numbers peak at 70.3 million (31.1 million in 2011). 1971-1989 – Wool export prices rose by at least 800%. 1990 – Global slowdown brings decline. 1989-2011 – Wool exports fell about 50%. 2011 – Wool export prices reach a 21-year high. Sheepmeat reaches an all-time high. Source: Statistics New Zealand’s report Off the sheep’s back Meanwhile Beef and Lamb NZ chairman Mike Petersen says wool is still a success story now, with further potential. “When you look at a product bringing in $1 billion a year, it is still incredibly significant. With the trends happening globally – whether it’s natural fibres or grass-fed meat – the theme around the world is naturalness and wool is perfectly matched to that theme.” The industry is bringing in big returns on sheepmeat and wool despite sheep numbers being half the mid1980s peak of 70 million, Petersen says.

haven’t really taken much notice of, but we’ve been talking about it for some time. “In the 1970s everything that went out of New Zealand was in frozen whole-carcass form. What’s coming out now is hundreds of different cuts from a single lamb, chilled and in consumer-ready form. This is an incredible story about product and market development. “We are not exporting commodities or the bottom end of food pricing; we’re exporting high quality, high-priced consumer tailored cuts, which is why you are seeing the industry go forward.”

in brief new chair and deputy at ATS CROPPING FARMER Phil McKendry, Methven, has been appointed chairman of farm supplies co-operative Ashburton Trading Society (ATS), with Ian Mackenzie as deputy chair. McKendry replaces John Low who chaired ATS for eight years. He is also a director of Electricity Ashburton, and was founding chairman of Barrhill Chertsey Irrigation Company. Mackenzie runs a 400ha irrigated cropping farm at Eiffelton, and is on the boards of Irrigation NZ and Federated Farmers New Zealand. ATS has three stores: Ashburton, Methven and Rakaia.

Rural News // january 24, 2012

news 19

Tasman water roadshow a model? BARBARA GIL H AM

A SERIES OF water user meetings late last year across the Tasman region has been hailed a success and a model other regions could follow. The Tasman District Council (TDC) roadshow ran at venues from as far south as Murchison through to Waimea, informing water users on NZ Landcare Trust’s activities in the region, what is going well, and where work is still needed to improve water quality. “We had farmers, rafters, kayakers, fishermen, horticulturalists and other river users at the workshops – all people anxious to improve water quality,” says Barbara Stuart, Nelson/Marlborough regional coordinator for the trust. “The workshops provided a comfortable forum where people could share their views, and provided an opportunity for them to

talk constructively.” Led by TDC resource scientist Trevor James, the roadshow was facilitated by Dr Glen Lauder, a coach with the national Land and Water Forum and director and practice leader at CommonGround Associates Ltd. Lauder described the work in the region as “cutting edge and a model for other areas in the country.” “The benefits of the roadshows were twofold,” he told Rural News. “They provided a good update on where Tasman water is at and we heard from local people in local catchments about what they are doing and actually mean when they talk about water issues in their areas.” Lauder says the story of New Zealand water is a story for all New Zealanders. “All of us have an ecological interest in the future of water.” Other roadshow speakers included local farm

leaders and catchment group leaders, as well as Stuart, James, and Shirley Hayward of Dairy NZ. Tours of catchments, such as the Aorere and Sherry, were also run. Roadshow organisers

included TDC, NZ Landcare Trust, Dairy NZ, Fonterra and Cawthron Institute. Stuart says each venue attracted about 30 attendees. Trevor James addresses one of the meetings.

Letter

I WRITE to provide further information about the control of American foulbrood, following Rural News’ December 1 article ‘Serial offenders should be stung’. The article could leave readers with the impression that a lack of MAF funding is the reason why there aren’t more prosecutions related to American foulbrood. That is not the case. American foulbrood is managed by the beekeeping industry under a national pest management strategy. That strategy is funded by a levy on all beekeepers, and the industry has full control over the funding and how it is spent. This apiary levy raises about $280,000 per annum. The funding comparison between American foulbrood and bovine tuberculosis relates to the budgets of their respective pest management strategies, rather than MAF funding. The management of American foulbrood is not easily comparable with the bovine tuberculosis strategy, which is responsible for managing the TB risk in 70,000 herds of cattle and deer, maintaining extensive movement controls on livestock and [killing] possums over a substantial part of New Zealand. While the reported American foulbrood outbreaks are serious for affected beekeepers, levels of the disease across the country have been stable for the past decade, with about three hives/1000 infected. MAF plays a supporting role in managing American foulbrood and is working with the beekeeping industry to review the national pest management strategy. Paul Bolger Senior policy analyst Ministry of Agriculture and Forestry

• More letters p27

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Rural News // january 24, 2012

20 world

Groundwater problems worldwide ALAN H ARMAN

INTERNATIONAL WATER scientists are calling for action over a growing threat to the world’s

groundwater supplies from over-extraction and pollution. Water supplies will by 2030 begin running out in critical regions

where they support cities, industries and food production unless urgent steps are taken to better manage the resource, says Prof. Craig Simmons,

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director of Australia’s Adelaide-based National Centre for Groundwater Research and Training and a member of UNESCO’s global groundwater governance programme. A recent satellite study has found falling groundwater tables in the United States, North Africa, India, the Middle East and China, where expanding agriculture and cities have increased water demand. “The world has experienced a boom in groundwater use, more than doubling the rate of extraction between 1960 and 2000, with usage continuing to soar up to the present,” Simmons says. “Groundwater makes up about 97% of all the available fresh water on the planet and presently accounts for about 40% of our total water supply,” he says. “It provides drinking water to cities, is needed to grow much of our food and sustains many industries, yet almost everywhere there is clear evidence water tables are falling.” Simmons says this means humanity is extracting groundwater much faster than it is naturally replaced. “Not many people think of groundwater as a key driver of the global economy – yet it is,” he says. “If it becomes depleted entire industries may be forced to shut down or move. Whole regions could face acute water scarcity.” The groundwater crisis, he says, is being

US aquifers in trouble PROF.ROBERT Glennon, of the University of Arizona, says unconstrained drilling of new wells – as many as 800,000 a year – has put incredible strain on aquifers around the US. “Plummeting groundwater tables have caused earth subsidence, fissures, and saltwater intrusion… It took millennia for this water to accumulate in aquifers, but humans are pumping it out in mere decades.” Glennon says the environmental costs of unsustainable groundwater pumping are staggering. Rivers and springs have dried up or been reduced to a trickle. “An aquifer is like a milkshake glass and each well is the equivalent of a straw in the glass… What most countries permit is a limitless number of straws in the glass. This is a recipe for disaster.”

hastened by an era of cheap pumps and relatively cheap energy, making it easy to extract. “Over-extraction also has serious implications for the environment, especially when the climate is warming, as falling water tables can lead to emptying lakes and rivers and dying landscapes as the water they depended on is withdrawn,” Simmons says.

“The blunt fact is most countries and local regions did not know the size of their water resources when they began extracting them, nor how long it took to recharge. In some cases this can take centuries or even millennia. As a result they are now extracting their water unsustainably.” In the Middle East, depleted aquifers have been a major driver of the

relocation of agriculture to Africa and the ‘land-grab’ by wealthy countries. In India the number of wells grew from less than one million in 1960 to 19 million by 2000. Water tables in the key food bowl are sinking beyond the reach of many farmers’ pumps. “The crisis in global groundwater is chiefly one of poor governance, exacerbated by a lack of knowledge of the size and condition of the resource, rates of recharge, lack of transparent policy, lack of ownership, lack of price signals to users and a lack of political will to do anything,” Simmons says. “It’s fixable but it will take a lot of hard work and good science to do so.” Simmons says groundwater science has improved dramatically in the last decade, giving the ability to measure and manage the resource, but governance has yet to catch up. “Unless it does, we can expect serious problems in the future.”

in brief UK wins sheep tag deferral British sheep farmers have been given a stay of execution on when they have to electronically tag older ewes and rams. England’s equivalent to MAF, the Department of Environment, Food and Rural Affairs, announced just prior to Christmas it had persuaded EU Member States to delay until 2015 mandatory tagging of “historic flock” animals. The measure was due to come into force on January 1 this year.

DEFRA says there is no prospect of any further extension to this date, so keepers should be planning how they will individually record any older animals remaining in their flocks by the end of 2014. In the meantime keepers must continue to report movements of these sheep on a batch basis. This change will save British sheep keepers between £4-11.5m over the next three years, says the department.

Rural News // january 24, 2012

world 21

Australia’s lamb exports mount ALAN H ARMAN

AUSTRALIAN LAMB exports rose 3% in 2011 to 160,007t, the third largest annual total on record, behind 2009 and 2007. Meat and Livestock Australia says the increase occurred despite a fall in lamb production over the same period as strong overseas demand and tight global supplies, particularly out of New Zealand, attracted more Australian shipments. On volume, the largest export market remained the Middle East, despite a 5% fall to 34,987t, with the US a close second on 34,334t, a 1% increase. However the US took the highest value of exports. Sales to Greater China were up 15% at 29,620t. MLA notes this is a region identified by Australia and New Zealand as a key growth market for lamb and mutton, but Australian lamb filled the demand because of disruptions to New Zealand supply in 2010/11. A similar pattern emerged in the European Union, where Australian lamb exports climbed 8% to 12,356t. “The limitation on exporting lamb to this market, set by a tariff rate quota of 18,786t, remains an issue for Australian exporters, particularly when compared with the New Zealand quota of 227,854t,” MLA says. Australian lamb exports to Papua New Guinea grew 12% at 10,212t, and sales to other parts of Southeast Asia gained 4% at 9,585t. Sales to Japan fell 4% to 7381t. MLA says national average saleyard prices for lamb rose everywhere during 2011 with strong rebuilding intentions and steady demand in Australian and overseas markets having a positive influence on prices. The greatest increase in average prices for the year was in light lambs, with tight supply a key factor, underpinned by favourable grazing conditions. Their prices rose 16% to average $A5.40/kg. There was also competition from restockers and feeders for lighter lambs, this category averaging 14% higher at $A5.85/kg. Merino lambs, helped by a rejuvenated wool outlook,

Australian sheep producers benefitted from New Zealand’s reduced supply in 2011.

rose 12% to average $A4.93/kg, while trade lambs were up 9% averaging $A5.49/kg and heavy lambs for processing up 8% at $A5.29/kg. The national saleyard mutton indicator averaged 11% higher at $A4.13/kg with a combination of flock rebuilding, improved wool prices and tight supplies the main drivers for the increase.

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Beef exports gain 3% BEEF EXPORTS from Australia hit a four-year high of 949,195t in 2011 – 3% up on 2010 and the thirdhighest volume in 12 years. The Federal Department of Agriculture figures show Australia’s beef and veal shipments finished the year at a rapid pace, with November’s the highest in three years and a record December volume of 82,054t. Meat and Livestock Australia says the figures reflect strong underlying global demand for Australian beef, considering the currency and other issues faced during the year. Japan bought 30,202t in December, taking its 2011 imports to 342,186t, down about 4% from 2010 mainly due to the March earthquake and tsunami, and increased US competition. Shipments to South Korea ended the year up 18% at 146,347t, boosted by a foot-and-mouth outbreak that caused a sizeable cull of pigs and increased demand for beef. Russia, the Middle East and other South East Asian nations also took more, as did more traditional markets of the EU and Canada. Shipments to the US were the lowest in 20 years at 167,820t (195,000t in 2010) as American production and exports soared. MLA says the stars of the 2011 export year were the smaller, non-traditional markets, which offset, or even contributed to, the lower volumes to Japan and the US.

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Rural News // january 24, 2012

22 agribusiness

Bidders wait on receiver pa m t i pa

BATTLE STILL looms over the future of Wool Services International’s $40m assets with both remaining parties (third player, WoolCo, pulled out prior to Christmas) saying their model will be best for growers. Cavalier Wool Holdings (CWH) says it hopes to start discussions to buy Wool Services International (WSI) by the end of the month. But WSI chairman Derek Kirke says the company has advanced plans to do its own capital raising. Both say they await the next move by the receiver of Plum Duff Ltd and Woolpak Holdings which hold a combined 64% of WSI. CWH says Godfrey Hirst’s announcement that it wouldn’t appeal the

High Court ruling supporting the Commerce Commission’s approval of a Cavalier bid means legal obstacles are now out of the way. Chief executive Nigel Hales maintains a Cavalier buy-out would stem the exodus of New Zealand’s wool scouring to China. Since June last year unprocessed shipments to China are up 17%, he points out. “It is absolutely strategic that the wool scouring industry remains viable in New Zealand and we are definitely under threat from China. As was the case in Australia, if we don’t respond to it now it may be too late.” CWH, a New Zealandowned company, says it would sell WSI’s trading division and close WSI’s Hawke’s Bay and Christchurch scours, relocating business, and staff

wool out of that equation the actual money it would return to New Zealand Inc is quite staggering and hence that’s one of the reasons why the Commerce Commission gave us approval.” Hales says New Zealand is a world leader in wool scouring and that reputation for our wool is good for growers also. “While we’ve got volume we are going to be able to compete with the Chinese on a cost basis. We’re light years ahead of them for quality. “Protecting as much wool here as we can has to be an objective. It will work toward the betterment not only of the players involved in trading, washing and scouring wool but the flow-on effect to the farmers as well.” Kirke says he cannot

who wished to, to its own plants at Hawke’s Bay and Timaru. While critics say the merger would create a monopoly and push up the price of wool scouring, CWH argues the economies of scale will create more competitive scouring tariffs, and competition from China will keep costs down. “We believe it is the right thing to do, not only for us as a business but also for farmers to have a viable and strong wool business here,” says Hales. Growth in unprocessed wool going to China was 10-12% in 2010 and 17% since June 2011. “I think farmers will get greater value for their wool, being processed here in New Zealand as opposed to being processed offshore. Certainly taking the price of

comment further on WSI’s capital raising plans but is adamant WSI’s model is better for New Zealand. “We are merchant scourers so we buy the wool from farmers and we sell it internationally so we have much more control of the volume we put through our scourers than Cavalier do; they are commission wool-scourers and we strongly believe that is the wrong model for a the future of the New Zealand wool industry. “We’ve done surveys of farmer opinions and by far the majority of farmers are very perturbed about the idea of a monopoly and even the Commerce Commission said farmers would pay the price of a monopoly for wool scouring.” There is nothing to indicate a monopoly will stop New Zealand losing large volumes of greasy to China, Kirke says.

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Rural News // january 24, 2012

agribusiness 23

Urgent need for industry strategy pa m t i pa

NEW ZEALAND needs to start work now on an allencompassing primary industry strategy or risk being left behind by other countries, says Ian Proudfoot, KPMG head of agribusiness and a partner in the firm. This subject has engaged KPMG since the release six months ago of its report Agribusiness Agenda 2011 – Realising Global Potential. “I would like to see some real, dramatic forward thinking,” Proudfoot says. In the case of tourism, the country has established itself as a premium destination mainly by having a national tourism strategy across the whole industry. “Agriculture has a number of strategies that sit there, but they don’t link together. We don’t say this is where we want New Zealand to be in 50 years and agriculture is going to play this role in achieving that.”

The strategy needs to be Government-led and with the appointment of a Minister of Primary Industry and the likely rebranding of MAF around that name, the timing is right. “You would then end up with an industry body that can take the strategy and make it a reality.” Other countries will beat us to it if we don’t maximise opportunity. “For instance Chile aims to be the numberone supplier of fruit and vegetables to Asia and particularly China. They are actively investing in policy and infrastructure to make that happen and if we don’t do what we need to they will shut us out of markets.” A strategic vision must look beyond dominant players such as Fonterra to work for all the components of the primary industry. People with a wide vision are needed, Proudfoot says. New Zealand currently has 90 companies selling apples overseas. Without consolidation, the nation

Ravensdown backs UN co-op initiative ONE OF New Zealand’s largest rural co-operatives has signed as an official sponsor of the United Nation’s International Year of Cooperatives initiative. Ravensdown told Rural News its $10,000 grant to the UN would benefit farmer shareholders, and others in the sector, by educating policy makers in the new parliament and influencing research. “This UN initiative to promote the economic benefits of memberowned cooperatives and mutual enterprises as opposed to investorowned business is a timely move,” says general manager marketing Mike Whitty. “Younger generations of policy Mike Whitty makers, consumers and producers are less aware of these benefits than those who remember the ‘gumboot takeover’ where ordinary farmers banded together to wrestle control from the self-serving corporates of the day.” Whitty notes Ravensdown is one of only three co-ops that have expanded overseas. “Research is needed on why that is and what the barriers are. If it is easier for Ravensdown to grow overseas, then this helps our shareholders as their co-op remains successful.” The New Zealand Cooperatives Association is organising local activities associated with the UN initiative. “Cooperatives face unique issues, so we will be initiating and collating research on their contribution to the New Zealand economy, raising continuing education about cooperatives with the Institute of Chartered Accountants and the Law Society, and jointly organising a research conference in June which will benefit all cooperatives,” says NZCA executive director Ramsey Margolis.

cannot have real global market influence and create more value at the farm gate. The avocado industry has its biggest crop ever this year, but with so many people shipping avocados overseas they are competing on price, so instead of growers getting about $20

Ian Proudfoot

a tray as they did last year, they are only getting about $2 a tray. “We are not going to market with sufficient vision of how we maximise value for the whole industry. When you have a product which is similar the main differentiation you can make is on price.”

New Zealand is good at producing high-quality protein, but products such as milk powder must be globally marketed as a solution rather than a commodity. A primary industry strategy could also assist in taking good ideas from the dairy industry across

to other sectors. A lot of good ideas get to a small group of farmers, but not the wider farming community and definitely not into other sectors. To maintain New Zealand’s lifestyle “the challenge is to be more than good; we’ve got to be exceptional,” Proudfoot says.

Rural News // january 24, 2012

Market Snapshot North Island c/kgCWT

Lamb - PM 16.0kg

Lamb Market Trends

Meat South Island

Change c/kg

Last Week

Change c/kg

Last Week

n/c

7.38

-10

Lamb Prices

Beef Prices

c/kgCWT

P2 Steer - 300kg

n/c

4.60

4.00

7.03

5.98

M2 Bull - 300kg

4.85

4.80

4.00

PX - 19.0kg

n/c

7.40

6.00

P2 Cow - 230kg

n/c

3.70

3.10

PH - 22.0kg

n/c

7.41

6.01

M Cow - 200kg

n/c

3.60

3.00

MX1 - 21kg

n/c

4.60

3.95

Local Trade - 230kg

+10

4.60

4.50

4.00

-10

7.03

7.13

5.66

P2 Steer - 300kg

n/c

4.35

3.85

PM - 16.0kg

-10

7.03

7.13

5.68

M2 Bull - 300kg

n/c

4.30

3.75

PX - 19.0kg

-10

7.03

7.13

5.70

P2 Cow - 230kg

n/c

3.50

2.75

PH - 22.0kg

-10

7.03

7.13

5.71

M Cow - 200kg

n/c

3.40

2.70

-10

4.33

4.43

3.80

Local Trade - 230kg

n/c

4.38

3.80

n/c

4.30

Venison - AP 60kg

-20

7.90

-20

8.00

NI Lamb

YM - 13.5kg

Mutton SI Lamb

YM - 13.5kg

North Island 16.0kg M Lamb Price $8.5 Mutton

$7.5

MX1 -

21kg

NZ Slaughter

$6.5

1000s

$5.5 5yr Ave Last Year This Year

Change

Lamb NI Lamb SI Mar

Lamb NZ Mutton NZ

Last Year

5yr Ave

140

138

170

Cattle NI

237

203

213

Cattle SI

376

341

383

Cattle NZ

124

160

102

Bull NI

Bull SI

Str & Hfr NI

7.3

3.1

9.1

7.9

Str & Hfr SI

3.5

0.0

4.0

2.8

450 300

$5.5

$3.5 Oct

Nov

Oct Jan

Feb

Nov

Dec

Jan

Feb

Mar

Change

North Island 300kg Bull Price

$4.5

$3.5

Last Week

2 Wks Ago

Last Year

5yr Ave

n/c

1.90

2.40

1.56

NZ$/kg

-18

8.13

8.31

10.88

8.24

Nov

Feb

Oct

Nov

Change 5yr Ave Last Year This Year

$3.0 Oct

Nov

Dec

Jan

Feb

Mar

Dec

Jan

Feb

Mar

3 Wks Ago

Last Year

5yr Ave

% Returned NI

+2%

92.3%

90.3%

56.1%

41.5%

% Returned SI

+0%

87.9%

87.8%

53.3%

51.3%

$8.0

9.4

1.3

10.2

8.4

0.9

0.0

1.0

1.1

0.3

3.9

3.0

0.0

1.8

0.9

NZ Weekly Beef Kill

Last Year

This Year

0 Oct

Nov

Dec

Jan

This Year

2 Wks Ago

Last Year

5yr Ave

2.08

2.07

2.00

1.49

-5

5.80

5.85

5.73

4.59

$2.10

Last Year This Year

$1.70 Oct

Nov

Change

Dec

2Wks Ago

Dec

Jan

Feb

Mar

South Island 60kg Stag Price

This Year

75%

Mar

3 Wks Ago

Last Year

5yr Ave

+2%

82.8%

80.3%

69.83%

73.6%

74.1%

73.5%

64.6%

67.8%

Procurement Indicator - North I. Last Year This Year

70%

Last Year

85% Nov

Feb

+1%

Feb

Procurement Indicator - South I.

95%

Jan

% Returned SI

90%

50% Oct

Dec

% Returned NI

60%

$7.0

Oct

Mar

Last Week

80%

$6.0

Feb

Demand Indicator - US 95CL Beef

Last Year

70% 5yr Ave Last Year This Year

24.1

Procurement Indicator

Procurement Indicator - North I.

100% 80%

$9.0

30.0

$1.90

2Wks Ago

90%

North Island 60kg Stag Price

4.7

2.5

This Year

Procurement Indicator

$3.5

4.8

25.1

Last Year £1.60

$4.0

19.3

6.8

1.5

NZ$/kg

Mar

South Island 300kg Steer Price

$4.5

23.2

0.0

95CL US$/lb

Jan

4.7

5.9

£2.10 Dec

19.2

Cows NI

Change

$3.0 Oct

5yr Ave

Export Market Demand

Demand Indicator - UK Leg Price

£2.60 5yr Ave Last Year This Year

Last Year

£/lb

UK Leg

$4.0

3 Wks Ago

Export Market Demand $5.0

2Wks Ago

Change

Cows SI

This Year

0 Dec

1000s

Last Year

150

5yr Ave Last Year This Year

Estimated Weekly Kill

3 Wks Ago

600

$6.5

2Wks Ago

NZ Weekly Lamb Kill

750

$7.5

NZ Slaughter

Estimated Weekly Kill

South Island 16.0kg M Lamb Price

$4.5

Last Year

5.96

4.85

$8.5

2 Wks Ago

7.38

Feb

Last Week

7.36

Bull - M2 300kg

Jan

Change

7.38

4.35

Dec

c/kgCWT

7.36

n/c

Nov

Last Year

n/c

4.60

Oct

2 Wks Ago

n/c

$3.5

Change

Last Week

PM - 16.0kg

Steer - P2 300kg

$4.5

Beef Market Trends

60%

Oct

Dec

Feb

65%

$9.5

5yr Ave Last Year This Year

$8.5

55%

Procurement Indicator - South I.

85%

45% Oct

Dec

Last Year This Year

Feb 75%

Venison Prices

$7.5

Change $6.5 Oct

Nov

Dec

Jan

Feb

Mar

65%

Last Week

2 Wks Ago

Last Year

5yr Ave

NI Stag - 60kg

-20

7.90

8.10

7.30

6.53

SI Stag - 60kg

-20

8.00

8.20

7.40

6.80

55% Oct

Dec

Feb

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 // january 24, 2012

Beef Wool Price Watch Cattle slaughter market starts 2012 on strong note North Island bull prices are heading into uncharted territory with an average of $4.85/kg being paid last week for 300kg cwt bull. Steer prices are gaining some traction with prices averaging $4.60-4.65/kg. Itâ&#x20AC;&#x2122;s been tough for meat processors with the limited kill. Farmers are holding onto cattle given the feed levels throughout the North Island. The manufacturing cow kill is virtually non-existent as dairy farmers continue to make the most of the excellent season. This is helping underpin bull prices as processors desperately source manufacturing beef to make up for the lack of cow kill. The cattle slaughter continues to hold steady in the South Island. A general shortage of killable cattle has kept prices on an even keel over the last month. 300kg cwt bull prices were firm on $4.30/kg last week while 300kg cwt steer prices held at $4.35/kg. A combination of a lot of cattle killed earlier and the fact many are keen to hold onto cattle to control feed levels is keeping numbers tight. Hamburger boom set to continue The prospects in the US market remain bright in 2012 with positive benefits set to flow back to New Zealand farmers. With the bulk of New Zealand beef sent to the US as manufacturing or grinding beef, it is pleasing to hear that grinding beef supplies, used for hamburgers, will be the tightest in 2012. The hamburger boom since the 2008 recession and the continued growth of hamburger chains will guarantee record prices for lean beef (90CL/95CL) in 2012. 50% of all Americans ate a burger at least once a week in 2011, up from 38% in 2009.

Lamb

Dairy Price Watch Change

12-Jan

21-Dec

Last Year

Indicators in NZ$/T

Coarse Xbred Indic.

-19

5.47

5.66

5.28

Butter

Fine Xbred Indicator

-17

5.84

6.01

5.52

Skim Milk Powder

5.40

5.72

Whole Milk Powder

+19

9.32

9.13

8.13

Cheddar

Indicators in NZ$

Lamb Indicator Mid Micron Indic.

Wool Indicator Trends

750

Last 2 Wks

Prev. 2 Wks

Last Year

+91

4968

4877

6046

-2

4455

4457

4502

-85

4663

4748

4913

+137

5240

5103

5455

Change

Dairy Prices Trends

7,000

SMP But.

700 6,000

650

WMP Ched.

600 5,000

550 500

CXI

FXI

450

4,000 Jan

Mar

May

Jul

Sep

Jan

Nov

Mar

Coarse Xbred Indicator

700

May

Jul

Sep

Nov

Whole Milk Powder Price (NZ$) 6,000

600 5,000

500

Last Year

This Year

This Year 400

4,000 Oct

Nov

Dec

Jan

Feb

Mar

Oct

Overseas Price Indicators Indicators in US$/kg

Change

Nov

12-Jan

21-Dec

Indicators in US$/T

Coarse Xbred Indicator

4.36

4.35

4.05

Butter

4.66

4.62

4.24

Skim Milk Powder

4.30

4.39

Whole Milk Powder

+42

7.43

7.01

6.24

Cheddar

Mid Micron Indicator

Mixed market for export lamb The lamb schedule in the North Island is failing to come Wool Indicator in US$ 600 back to levels desired by meat processors because of the 550 slow intake of lambs. Around $7.38/kg (net) was the 500 average paid for a 16kg cwt lamb last week. Some meat 450 companies have even lifted prices in the North Island to entice more lambs out. In the South Island lamb slaughter 400 CXI FXI LI rates have quickly picked back up to near pre-Christmas 350 Jan Mar May Jul Sep Nov levels, no doubt helped along by the recent dry conditions in Southland. Another driver increasing slaughter Coarse Xbred Indictor in US$ numbers has been the fall in operating prices over the 550 break. A 16kg cwt lamb is now only fetching $7.03/kg 500 (net) on average. Farmers are looking to offload lambs to 450 beat further price drops and many are also finding the 400 feed quality has gone off with some feed crops not yet Last Year 350 ready. Overseas markets for lamb are still tough and with This Year 300 the kiwi dollar charging higher against the Euro and the Oct Nov Dec Jan Feb Mar Pound, meat processors margins are squeezed further. The UK market is very sluggish and exporters are tending to focus on the EU, but this market is also on shaky ground due to their Currency Watch ongoing debt crisis. Last 2 Wks 4 Wks vs. NZ Dollar Week Ago Ago Mutton kill still well behind US dollar 0.790 0.780 0.759 Three months into the new slaughter season and the mutton kill is still Euro 0.617 0.611 0.582 well down on last season. Over 700,000 less ewes have been killed UK pound 0.515 0.504 0.489 compared to the same period last season. This is despite the record Aus dollar 0.767 0.762 0.762 prices being paid by meat companies. Current mutton prices are Japan yen 60.70 60.29 59.11 averaging $4.60/kg in the North Island and $4.45/kg in the South Island.

Wool Wool market fails to fire at first sale of 2012 Many farmers managed to finally get some shearing done over the Christmas/New Year period after ongoing disruptions from rain. However the wool market has not kicked off to a great start for 2012, with the stronger kiwi dollar considerably affecting wool returns. Since the last sale on the 21st December, the kiwi dollar has increased nearly 4% to almost US80c. Over 25,000 bales were auctioned at the latest sale; the highest offering since March 2010 which also subdued prices.

Jan

Feb

Mar

Overseas Price Indicators Last Year

Fine Xbred Indicator Lamb Indicator

Dec

Last 2 Wks

Change

Prev. 2 Wks

Last Year

+100

3875

3775

4600

+25

3475

3450

3425

-38

3638

3675

3738

+138

4088

3950

4150

Dairy Prices in US$/Tonne

5,000

4,000 SMP But.

3,000 Jan

Mar

WMP Ched. May

Jul

Sep

Nov

Whole Milk Powder Price in US$/T

5,000 4,500 4,000

Last Year

3,500

This Year

3,000 Oct

Nov

Jan

Feb

Mar

US Dollar

Last Year 0.770

Dec

Last Year This Year

0.80

0.578 0.486 0.773

0.70 Oct

63.64

Euro

Nov

Dec

Jan

Feb

Mar

UK Pound Last Year This

0.61

Last Year This Year

0.50

0.56 0.51 Oct

Nov

Dec

Jan

Feb

Mar

0.45 Oct

Nov

Dec

Jan

Feb

Mar

Rural News // january 24, 2012

26 opinion editorial

edna

EU crisis no reason to drop prices IS EUROPE’S debt crisis about to rain on farming’s parade? Thirty years ago there would have been no question it would have, but thankfully we live in different times. Our markets have become more diversified and we are no longer so exposed to the old trading bloc. But it’s not just geographically that our markets have become more diversified. More and more meat is shipped chilled, rather than frozen, and in cuts rather than carcasses. Meanwhile the array of dairy products grows ever wider and while the core commodities remain important, there’s a heap more value added. It all helps build robustness in our economy, and we should applaud those responsible, encouraging our processor-marketing companies to keep it up. We can’t feed the world, but we can target the wealthiest 1%. For these people the price of food is less important; it’s all about the experience, story, integrity and quality of the product. Price comes into it, but in a different way. Sell it too cheap and the buyer will start to question these other values, even if they are sound. Which is why we shouldn’t get too hungup about what is happening in Europe, and the economic uncertainty in the wider global economy, at least from a product marketing point of view. (Finance is another matter). Yes, for some UK supermarket customers our lamb may be a stretch of the weekly budget, but that makes it all the more special. What’s essential is that when a customer does decide to buy, they’re rewarded with a product that meets their expectations – those set by the marketing, price included. Drop the price for a few weeks and the customer’s perception is they’re getting a bargain. Drop the price for longer than that and hard-won brand value starts to be eroded. It’s taken a serious slump in our lamb production to give our marketers the muscle to leverage lamb prices to a point where, from the farmer’s perspective, they are at last sustainable. And in European markets, despite the strength of our dollar, our product is still more or less the same price as the local lamb – be it English, Welsh or French – on the shelf. If it’s as good as we like to think it is, then we have to stick to our guns and hold our prices into the powerful supermarket chains, en masse. If we have to reduce the volume, so be it. There are millions more Chinese every year with the spending power to match most Europeans.

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

“You bet they’re organic! The orchard is right by the long drop.”

the hound Funny definition of modest YOUR OLD mate nearly choked on his mince pie while sneaking a peak at Feds’ draft submission on the Road User Charges Bill over the Christmas break. “We are pleased to see that the recommended increase is modest,” it read. So a 78% increase, from $24.50 to $43.50, is modest? Here’s hoping for a “modest” increase in income in 2012.

Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz

Messengers shot at MAF?

Genetic jewellery

DON’T SHOOT the messenger, it’s said, but it seems that’s been no defence for MAF’s communications team. From the top down there are new names appearing with hardly a familiar face from the days of previous directorgeneral Murray Sherwin. McNee’s reforms at the ministry are indeed proving far reaching.

HOW ABOUT this for an unusual Christmas present: jewellery with a strand of DNA embedded in it? That’s what French firm DNA Dream was promoting as a world first in an E-flyer that hit your old mate’s inbox shortly after the big day. “A wisp of DNA in the heart of a jewel,” it trumpeted. More like emperor’s new clothes, if you ask me.

Helicopters highlight need to ‘stag-ger’ sales TALKING TO a deer farming mate recently, he relayed how two stag sales he wanted to attend were on the same day. With one in the morning and the other in the afternoon, the 200km road trip between the two meant it was a tall order to get to both. Apparently several buyers took to helicopters to beat the logistics, causing something of a distraction at both venues. Surely it would be in everyone’s interests if vendors and auctioneers could work together to avoid such clashes.

La ‘Niwa’ WITH THE top half of the country lurching between tropical drenchings, and the north of the South still clearing slips caused by deluges either side of Christmas, you have to ask whatever happened to La Nina? Just prior to Christmas NIWA warned it meant “a chance of drier than normal conditions in many parts of the country, and a bit less wind than normal.” Yeah right! Perhaps we’re in the grip of a new weather phenomenon: La Niwa. It’s typified by weather which bears no relation to the forecast.

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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 // january 24, 2012

opinion 27 if farmers pay they should own the knowledge TWO RECENT articles on the NAIT scheme make interesting reading from a farmer’s position. The first (Rural News,

December 1) said farmers are to pick up the bulk of the cost of administering the scheme, which will be a mere $8.6m. Yeah

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all tspieringsfonterra: Have you noticed all the European ideas I am introducing at Fonterra? Free milk in schools and dropping local milk prices are just two of my wonderful ideas. #whyeuropeisbroke henryfonterra@tspieringsfonterra: Theo, you do realise that Fonterra is a commercial company aimed at making NZ dairy farmers profitable and not a basket-case, socialist European economy don’t you? #justsaying sbrowninggreenmp: Kia ora just in case farmers thought Kevin Hague was a real wacko as the Greens’ agriculture spokesperson – then you ain’t seen nothing yet! #compulsoryorganicsforall nathguyminister@dcarterminofprimaryindustries: David; looking forward to working with you in the primary industries portfolio. Remember I’ve got your back – which would look really good with a knife in it. #yourdaysarenumbered dcarterminofprimaryindustries@ nathguyminister: Nathan; good to have you on board. Also thanks for the Christmas present, but not sure where to hang the bull’s-eye target you gave me! #waitingforthechop bwillsfedfarmers: Since Federated Farmers is an apolitical organisation we cannot publically express just how delighted we are that both Labour and the Greens lost last year’s election. #wehatelefties

right! How long before it is $20m? My argument is not that the scheme should be in place, but who funds it? The same article mentions the Minister of Biosecurity, so one assumes this is all for the ‘national good’. If that’s so, then the nation can pay – as we do for the tourism industry. Farmers will have already paid for the equipment to collect the information. If in fact farmers do pay, then we should own the information, and be able to sell it to interested parties. If nobody wishes to buy it, I will still collect it as a useful management tool. A second article (Waikato Times, December 6), quotes Federated Farmers spokesman Anders Crofoot saying “Down the track we will find other uses for this information”. Who has their eyes on this information for personal profit? If it is so important that the infor-

mation is gathered then it must be worth a lot of money. On the world stage, information is a highly priced commodity. In this case farmers have paid to collect it, so I am sure those who require it will be prepared to pay good money for it. Another point is that if we are to fund the scheme, then I would like to see the budget for the scheme published – especially the salaries. One salary which could be eliminated from the expense side of the budget is that of the clown who made the decision that “a NAIT approved RFID tag should be applied to the inner part of the ear, preferably the right.” Obviously the person responsible for this decision has never worked with RFID in stock handling yards and hasn’t seen the difficulty caused by stock with tags in either ears. Graham Smith Te Kauwhata

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bobmcdavittmetservice: Who’d have picked a drought in Southland and floods in Nelson and the Coromandel during the summer? Certainly not us at the Met Service! #yourguessisasgoodasours mikefay@ckellylandcorp: It would be a disgrace allowing Landcorp to manage, for a fee, farms purchased by Chinese buyers and potentially making Kiwis tenants in their own country! #canyoubelievemyhide ckellylandcorp@mikefay: I know! It would be like selling New Zealand’s rail company to the Americans or our main bank to the Australians for a huge, fat stipend! #yougottobekiddingme

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Rural News // january 24, 2012

28 opinion

How good was 2011 for you? THERE’S BEEN a lot of talk about 2011 being the near-perfect year for New Zealand’s farmers. There is little doubt our key export markets – growing nations with expanding middle classes hungry for our produce – tightening supplies and even the weather gods all

There is little doubt the dairy sector went from strength to strength during 2011. Fonterra’s record payout of $8.25/kgMS was more or less mirrored by the smaller dairy companies and sent total revenue for the sector north of $20 billion. smiled upon the agricultural sector – making 2011

a year most farmers will look back on with a smile. Dairy’s good run con-

tinued as the payout rose by $1.30 during the season, ending up at $8.25 – the

highest in Fonterra’s 10-year history. Red meat producers

FONTERRA FARMER BUSINESS UPDATE MEETINGS 30 January - 03 February 2012 Next week Fonterra is holding a round of 50 business update meetings across the country for the Co-operative’s 10,500 farmers. The meetings will provide an update on Trading Among Farmers, the market and general business. The meetings are open to all Fonterra farmers, so if that’s you, check out the schedule below to see whether the meetings are being held in your area and get along. Location

Date

Northland Kaitaia Tuesday 31 January Kaikohe Tuesday 31 January Dargaville Wednesday 01 February Whangarei Wednesday 01 February Wellsford Thursday 02 February Helensville Thursday 02 February South Auckland/Hauraki & Coromandel Morrinsville Tuesday 31 January Gordonton Tuesday 31 January Pukekohe Wednesday 01 February Auckland Wednesday 01 February Waihi Thursday 02 February Ngatea Thursday 02 February Waikato / King Country Cambridge Tuesday 31 January Te Pahu Tuesday 31 January Matamata Wednesday 01 February Waihou/Te Aroha Wednesday 01 February Putaruru Thursday 02 February Te Awamutu Thursday 02 February Bay of Plenty / Central Plateau Otorohanga Tuesday 31 January Owhango Tuesday 31 January Tirohanga Wednesday 01 February Reporoa Wednesday 01 February Opotiki Thursday 02 February Edgecumbe Thursday 02 February Rotorua Thursday 02 February Te Puke Friday 03 February Taranaki New Plymouth Tuesday 31 January Rahotu Wednesday 01 February Hawera Wednesday 01 February Kapuni Thursday 02 February Stratford Thursday 02 February Lower North Island Levin Monday 30 January Palmerston North Monday 30 January Pahiatua Tuesday 31 January Featherston Tuesday 31 January Dannevirke Wednesday 01 February Napier Wednesday 01 February Top of the South / Canterbury Oamaru Monday 30 January Waimate Monday 30 January Ashburton Tuesday 31 January Christchurch Tuesday 31 January Culverden Wednesday 01 February Kaikoura Wednesday 01 February Havelock Thursday 02 February Murchison Thursday 02 February Takaka Friday 03 February

Otago / Southland Mosgiel Balclutha Gore Invercargill

Wednesday 01 February Wednesday 01 February Thursday 02 February Thursday 02 February

time

Venue

11.00am 7.00pm 11.00am 7.00pm 11.00am 7.00pm

Northerner Motor Inn, Corner North Road & Kohuhu Street, Kaitaia Mid-North Motor Inn, 158 Broadway, Kaikohe Dargaville Museum, 32 Mount Wesley Coast Road, Dargaville Kingsgate Hotel, 9 Riverside Drive, Whangarei Wellsford Community Centre, 1 Matheson Road, Wellsford Helensville Catholic Church Hall, Corner Kowhai & Puriri Street, Helensville

11.00am 7.00pm 11.00am 7.00pm 11.00am 7.00pm

Kereone Rugby Club, Campbell Park, Thames Street, Morrinsville Hukanui Golf Club, 1550 Gordonton Rd, Gordonton Counties Function Centre, 222-250 Manukau Road, Pukekohe Novotel Ellerslie, 72-112 Greenlane East, Greenlane, Auckland St John’s Ambulance Hall, 25 Johnston St, Waihi Ngatea War Memorial Hall, Orchard Road, Ngatea

11.00am 7.00pm 11.00am 7.00pm 11.00am 7.00pm

Riverside Motor Lodge, 7 Williamson Street, Cambridge Te Pahu Hall, Te Pahu Road, Te Pahu Daltons Plantation, 280 Hinuera Road West, Matamata Barkers Function Centre, 12 Ngutumanga Road, Te Aroha Putaruru Kindergarten Conference Centre, 6 Glenshea St, Putaruru Te Awamutu Rugby Sports Club, 420 Albert Park Drive, Te Awamutu

11.00am 7.00pm 11.00am 7.00pm 11.00am 7.00pm 7.00pm 11.00am

Otorohanga Club, 107 Maniapoto Street, Otorohanga Owhango Hotel, Main Road South, State Highway 4 Tirohanga Hall, 839 Tirohanga Road, RD1, Atiamuri The Woolshed Tavern, Broadlands Road, Reporoa Opotiki Golf Club, Fromow Road, Opotiki Fonterra Edgecumbe Site, 520 Awakeri Road, Edgecumbe Holiday Inn Rotorua, 10 Tyron Street, Rotorua Pongakawa Hall (next to Pongakawa Primary School), Old Coach Road, Pongakawa

7.00pm 11.00am 7.00pm 11.00am 7.00pm

Quality Hotel Plymouth International, Corner Courtenay Street & Leach Street, New Plymouth Coastal Rugby Clubrooms, Rahotu Road, Rahotu SouthGate, Corner South Road & Whareroa Road, Hawera Kapuni Hall, Manaia Road, Kapuni Stratford Memorial Hall, Miranda Street, Stratford

11.00am 7.00pm 11.00am 7.00pm 11.00am 7.00pm

Murrayfield Café, Corner of Potts Hill & SH57, Levin Awapuni Racecourse, Racecourse Road, Palmerston North Bush Stadium, Bush Sports Park, Huxley Street, Pahiatua Kiwi Hall, Corner Bell & Birdwood Street, Featherston The Hub, Allardice Street, Dannevirke East Pier, Hardinge Road, Ahuriri

12:15pm 7:00pm 11:00am 7:00pm 11:00am 7:00pm 11:00am 7:00pm 10:30am

Kingsgate Hotel Brydone, 115 Thames Street, Oamaru Criterion Steakhouse, 198 Queen Street, Waimate Ashburton Trust Events Centre, 211A Wills Street, Ashburton Russley Golf Club, 428 Memorial Avenue, Burnside, Christchurch Culverden Rugby Club, School Road, Culverden Donegal House, Schoolhouse Road, SH 1, Kaikoura Slip Inn, 50 Main Road, Havelock Marina Murchison Sport, Recreation & Cultural Centre, Hampden Street Takaka Fire Station, 6 Motupipi Street, Takaka

11.00am 7.00pm 11.00am 7.00pm

Henley Hall, Centre Road, Henley Rosebank Lodge, 265 Clyde Street, Balclutha Croydon Hotel , Main Queenstown Highway, Gore Ascot Park Hotel, Corner of Tay Street & Racecourse Road, Invercargill

also made good money with the ambitious $150 a lamb – demanded by Federated Farmers a few years back – becoming a reality for many in 2011. Rising returns also spilled over into beef and deer farming. Beef prices were up on a year ago and the venison price at about $9/kg for a 55-60kg stag was a healthy increase on the five-year average of $7.39/kg. Meanwhile, the strong wool sector – pretty much flat-lining for the past decade or so – saw prices hit about $5.50/kg during 2011, well up on previous years. However, 2011 was not all nirvana for the agricultural sector, as many excitable and ill-informed

of Kiwi apples to be given clearance to enter the lucky country. Kiwifruit’s on-going annus horribilis, as the devastating Psa disease all but wipes out the once profitable gold variety, goes on. Almost 1000 – or about 30% of kiwifruit orchards – have now been impacted by disease. MAF predicts the loss of vines could take production of gold kiwifruit from about 30 million trays in the 2011/12 season down to as low as 10 million trays in the 2012/13 season. Strong wool’s performance may have been good during 2011, but it was off a terribly uneconomical low base. Meanwhile, nothing has changed in the sector’s

Nothing’s changed in the wool industry set-up.

commentators have been claiming. Sure, it will go down in record books as one of the better farming years. But some of the hyperbole needs to be put in perspective. There is little doubt the dairy sector went from strength to strength during 2011. Fonterra’s record payout of $8.25/ kgMS was more or less mirrored by the smaller dairy companies and sent total revenue for the sector north of $20 billion. However, mounting antagonism from an increasingly vociferous environmental lobby and growing pressure over local dairy prices will mean tougher times for the dairy sector in 2012. Meantime, 2011 will not be a year looked back on favourably by the horticulture sector. Apple growers struggled with a high New Zealand dollar. And while entry for New Zealand apples was finally gained into Australia – after 100 years of trying – our transTasman cousins still make it difficult for shipments

set-up with decade long attempts to unify the much divided industry gone nowhere. The capital raising plan by Wool Partners International to get farmers to commit half the country’s wool clip to a growerowned co-operative died a slow and painful death – like numerous other wool unifying proposals have before it. While lamb and sheepmeat may have been good, wool prices farmers were getting in 2011 were similar to what they were getting in 1986. How many other businesses would be celebrating earning the same amount for their outputs today as they were 25 years ago? Very few successful ones! Meanwhile, the costs of key inputs like fuel, fertiliser, machinery and labour have not stayed where they were quarter of a century ago. So yes, 2011 was a good year for New Zealand’s agricultural sector. But it has now gone and the challenge for farmers is the one ahead. Let’s hope 2012 will be a truly great year!

TITLE Rural News // january 24, 2012

Postal: Po Box 58 Winton 9741 Phone: 03 111 1111 Fax: 03 111 1111 Email: admin@southernﬁelddays.co.nz

Get ahead with smart genetics HOW WERE the rams you’ll be using later this year selected? Those buying from studs that are making the most of the latest technology are likely to start stealing a march on their counterparts, judging by the comments of Beef + Lamb New Zealand (B+LNZ) geneticist Mark Young. He says there’s no longer a need to wait for traits to be measured on a ram’s sons and daughters, before proving a pedigree ram’s worth. “Now a simple tissue sample can be used to assess genetic merit that rams will pass on to their offspring. This also means more accurate ratings of genetic worth are avail-

able on rams for sale to commercial farmers. This technology will improve to cover more traits in more sheep in coming years.” Rick Spence of St Leger Superior Genetics is one ram breeder who seeks out technology and uses it to improve the accuracy of his animal selection, while also speeding up his flock’s genetic progress. Spence and wife Heather farm 1008ha at Tiniroto, west of Gisborne. The 11,000 stock unit property includes a Romney stud of 3500 recorded ewes. Lamb growth rates, number of lambs born and meat yield have consistently featured near the top of the Spences’ list of target traits. St Leger was one of

The Spence’s 1008ha Gisborne property includes a 3500-ewe Romney stud managed under commercial conditions.

the first flocks to sign up to SIL, and has established cross-flock linkages to participate in SILACE, a large-scale, across flock and breed genetic evaluation. Their first appearance in SIL-ACE evaluation was in December. “We became interested in yield in 1984, when growth rate measurement first became available at Progressive Meats, thanks to Craig Hickson,” says Spence. “We started measuring and, shortly after that, we did a lot of work with Dr George Cruickshank and his GeneQuest programme, which involved post-mortem cutting and measuring carcass cuts manually. “Why? We realised there was going to be demand. The difference in yield between carcasses was huge and we could see there was a lot of opportunity. It wasn’t going to be long before people would be prepared to pay more for that. “At the end of the day, it’s about profitability, for me as a ram breeder and

for my commercial clients. They want rams that are going to increase their bottom line and that’s what I need to deliver: rams that will lift the profitability of the farmers’ flocks.” In 2006, the Spences began CT scanning lambs, which allowed them to assess top ram lambs as live animals rather than at processing, helping select sire rams from within the group. “It was being developed in Invermay and the first year we sent 30 ram lambs down. Every year since, we’ve sent our top 50 ram lambs – chosen on the SIL’s Dual Purpose Overall index of combined breeding values and eye muscle scan – away for CT scanning.” More recently the technology has been available closer to home, at Massey University, but the Spences continue to use scientist and InnerVision Manager Dr Neville Jopson to process the data. Jopson says CT scanning is as accurate as killing the animal and

management 29

Rick Spence of St Leger Superior Genetics is one of a growing number of ram breeders embracing new technology to speed up genetic progress.

measuring the weight of meat and fat in the three major carcass cuts. “It’s the gold standard for meat yield measurement in live animals. It’s very accurate and enables breeders to achieve high rates of genetic improvement. But it’s expensive at around $350 per animal.” Jopson says Spence’s approach is the most effective approach. “It’s called two-stage selection. All animals are first scanned using an ultrasound scanner to measure the eye muscle area around the 12th rib. The data is loaded into SIL and breeding values are

calculated for meat yield in the carcase.” Ultrasound scanning is less accurate than CT scanning at predicting meat yield, but large numbers can be measured on farm in a short time and it costs only about $5/ animal, he notes. “We select the top performing ram lambs from the ultrasound-based breeding values and take the best of those to the CT scanner. “Once scanned, the CT results are also loaded into SIL and the breeding values calculated again with the new data to make the final ram selection.

The breeder can then have confidence that they are selecting the very best animals on the best information possible.” Jopson says while a reasonable number of sheep breeders use CT scanning, as far as he’s aware there are only a handful scanning enough to make optimal use of the technology and improve their selection process. “It’s really only the top end breeders who already have a highly structured breeding programme and who also have sufficient scale to capture the benefits in their operation.” to page 30

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30 management

Example of sector strategy in action Beef + Lamb New Zealand chief executive Scott Champion says the Spences’ approach (see p29) to sheep breeding is an example of best practice in pushing an operation to the top of its field and keeping it there. “Taking the time to work through the options available and making

smart business decisions is a key theme of the Red Meat Sector Strategy. The strategy identifies that farmers and the sector can make an extra $3.4 billion a year by 2025. The technology and expertise is out there – and people like Rick and Heather Spence and tools like SIL’s ACE genetic evaluation make it

Breeders DNA testing rams will help the sector get ahead, says Beef + Lamb New Zealand.

even easier for commercial operators to access.”

Sheep50K tests became commercially available

in New Zealand only 16 months ago but already technologically savvy ram breeders such as the Spences are onto it, he notes. The technology was initially developed by Beef + Lamb New Zealand and Ovita, with Pfizer Animal Genetics commercialising it as Sheep50K. The test relies on a

panel of more than 50,000 DNA markers called SNPs (single nucleotide polymorphisms) identified in the sheep genome. Through a tissue or blood sample, DNA markers are used to predict breeding values for economically-relevant traits, such as weaning weight, carcass weight, number of lambs born, faecal egg count, facial eczema, wool and much more.

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Pfizer Animal Genetics New Zealand regional manager Sharl Liebergreen says that, even at this early stage, the benefits are flowing on to commercial farmers. “The technology is now at a point where it makes an enormous difference to rams that get to market. Farmers are becoming more familiar with the technology and asking the right questions.” Breeders are using the technology in two ways: testing existing sires and testing young rams yet to be selected for breeding purposes.

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“The mix would be about 50/50, but trending towards the young ram testing. This is the most powerful approach, as it can reduce the generation interval from three years to one-and-a-half years. Breeders are recognising the significance this time saving gives them.” The cost depends on the number of rams tested. Mobs of 10 or less are $890/head but if more than 46 rams are tested the price tumbles to $500/ head. Liebergreen says because Sheep50K results are integrated with SIL data of tested animals and their direct progeny, one test can influence and add value to hundreds of animals, leveraging the cost to below $10 per lamb. Ram breeders using 50K technology should be able to charge more for rams, but in reality it may be that they simply attract more of the market share, he adds, especially as commercial farmers start to appreciate the leap in production they can achieve by buying from leading breeders. A “sheep” tab on Pfizer’s New Zealand website – www.pfizeranimalgenetics.co.nz – includes a “Sheep50K” link and download pdf document listing ram breeders using SNP technology and the individual animals tested.

This season the Spences also began using Sheep50k, the latest DNA technology, which, through a tissue sample, accurately predicts an animal’s genetic merit for specific traits, without the need to wait for progeny to be born and assessed. “We got into Sheep50K test because it speeds up our genetic progress by years. We’re not having to wait to test progeny – it’s all there on the 50K test: fertility, meat yield, facial eczema tolerance and parasite resistance, and a lot more too.” In 2004 they began using DNA parentage technology at docking time to guarantee accuracy of animal identification and pedigree. Spence

says Shepherd, Pfizer Animal Genetics’ DNA parentage service, is an excellent method for managing lambs pedigree ID. It allows them to lamb on areas unsuitable for tagging at birth, simplifies multiple sire mating management, and minimises disturbance at lambing. “It means our flock management is very similar to commercial farming methods, with the same pressures and requirements of animals.” The results of all this technology – CT scanning, 50K technology and DNA parentage – are inputted into SIL and, through the SIL-ACE FlockFinder tool, the stud’s performance is transparent and publicly available.

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32 management

Good season presents new options The abundance of feed in most areas and positive product prices are presenting farms with choices they haven’t had in years – and challenges. Peter Burke reports. FOR MOST farmers around the country this season could be described as a season of choices, says Horowehenua veterinarian Rob Bloomfield. All the farmers he deals with are doing well thanks to product prices being up

and animal health good thanks to the weather this summer. Apart from a brief problem in late October, when some of the dairy farmers in the district were short of feed, there have been few problems.

Now, the biggest problem is controlling the quality of pasture. One option is getting contractors to take silage; some farms are taking their third cut. Bloomfield says it’s an unusual season and farmers have more choices

than in decades. “Some people have been on the backburner most of their farming career. Now each of the different groups of farmers have the option of making choices they have never had before. “They’ve got day-today choices. The animal

Controlling pasture quality is the challenge, notes Horowhenua vet Rob Bloomfield (inset).

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working well. The medium choices are there to be made as well as some long term choices. “They are not stuck with the beef or the sheep – they can change things including their farm type. They can do some development such as fencing or get their phosphate levels up again if they’ve let them drop back. They can afford to build a new shed and other things around the farm.” Making long-term choices is quite foreign to many farmers. “They’ve been busy managing day to day and maybe season to season but now they have freedom to think further out. For example, they can throw a lot of money at the mortgage because they are making good money. As soon as you start paying the mortgage off in great chunks it’s easy to re-borrow or even accumulate capital and start doing things you dreamed about 10 years ago when you bought the property.” Tied in with the idea of choices is the need to have good data and to carefully assess risk. “Farming is about risk and planning. You can look in your paddocks,

measure your pasture and look at the weights of your stock. Risk is one area some farmers are good at and some farmers aren’t,” he says. Bloomfield says if it doesn’t rain again right now, things would be fine, but if there was no rain for a month then people may have to make drastic decisions. Right now one of the biggest problems facing some farmers is the lack of stock on farms to eat the available grass. “We are seeing aboveschedule prices for particularly beef and to some extent lambs in the saleyards It’s an unusual situation after Christmas, where the schedules have risen for beef. It’s almost unknown – they didn’t drop before Christmas and they’ve risen slightly. As well the exchange rate is also rising.” In order to make the right choices, the quality of data can make all the difference, says Bloomfield. There’s a difference between data and information and farmers have traditionally dealt with information which is essentially what they see and what their neighbours have said to them.

Rural News // january 24, 2012

management 33

Shed system cuts SCC and mastitis An open day to view the ADF (Automatic Dipping and Flushing) milking system in operation was recently held on the property of Canterbury dairy farmer Martin Early. Barbara Gillham reports. MORE THAN 30 farmers turned out for a field day to see and hear how automation in the milking shed is helping one Canterbury dairy farmer cut cell counts and combat mastitis. Martin Early, Mayfield, had an Automatic Dipping and Flushing (ADF) milking system installed in his 54 bail, Waikato rotary platform in August last year. He says it’s one of the “best things” he has done on the highly productive spray irrigated farm. An ongoing problem with mastitis in the 920-cow herd had driven him to look for an effective method of controlling it, something he believes he has now achieved thanks to the system. At the field day Martin showed visitors the system in operation and answered questions, saying his experience with it has Where: Mayfield, Canterbury. been “excellent.” Area: 395ha total; 239ha ADF says Earmilking platform. ly’s experiences Herd: 920, spring calved. and opinion of the success of Production: 454,100kgMS total; 495kgMS/cow, the system echo 1,900kgMS/ha. those of other farmers throughStaff: 4.5 full time plus owner. out the country. Input level: System 4. While most farmers follow traditional best practice methods to control mastitis, such as dry cow therapy, proper maintenance of milking equipment and treating clinical lactation, the firm says the cornerstone has always been teat spraying which can be both time consuming and prone to human error if staff are less than thorough in what they are doing. Developed in the UK, ADF Milking has been operat-

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Martin Early and ADF founder James Duke discuss the recent install of ADF in the dairy shed.

ing since 2004. The system, designed to disinfect the teat immediately after milking and sanitise the cluster between cows, has already proven popular overseas and is being used on farms in Europe, the US and Canada. It was introduced in New Zealand and Australia two years ago. The open day at the Early’s farm allowed farmers to talk with and question ADF Milking founder, James Duke, visiting New Zealand. “New Zealand dairy farmers are a bit more cautious than farmers overseas and are looking at results,” says Duke. “Mastitis is the biggest cost dairy farmers have and until now it was not easy to control, but looking at the figures they were generally happy with the results they saw for ADF.

It can be tough for ambitious young farmers starting out in the business. But, with the right plan and a Farm Start-up package from The National Bank it is achievable. With special lending facilities and banking benefits, it could be just what you need to get going. And with hard work, good management and the support of our experienced Agri Business Team, you can be confident about your future. To find out more contact your National Bank Agri Manager or call 0800 807 711 to speak to an Agri Manager near you. Our lending criteria, terms, conditions and fees apply. Our Reserve Bank disclosure statement is available from any National Bank branch. The National Bank, part of ANZ National Bank Limited.

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animal health 35

Evidence of livestock feelings p e t e r bu r k e

DO ANIMALS have feelings? The answer, says a leading animal welfare expert, is that science is starting to prove this to be the case. Professor David Mellor, of Massey University, is co-director of the Animal Welfare Science and Bioethics Centre. He is in demand as a speaker at international conferences on animal welfare issues. He says the idea that animals could have ‘subjective experiences’ or what a lot of people call ‘feelings’ is something some farmers find a bit hard to accept. But while it’s hard to prove exactly what animals feel about things, increasingly over the last 20 years, it has become scientifically accepted that animals can have these sorts of experiences. Mellor says this is manifested in the way they behave. “These ‘subjective experiences’ can be divided into two broad categories: urges and drives which safeguard their wellbeing and ongoing life; and what the animal is endeavouring to achieve – what it wants to do, what

Better management of animal’s needs is possible even where kept in large numbers, says Massey’s David Mellor (inset).

it finds it can do and what it can’t do,” he says.

that drives them to seek out water. The drive there

“It is recognised that animals have general ‘subjective experiences’ that can be nasty, neutral or nice, just as humans do.” Some farmers and regulators question this concept, but Mellor says he puts it to farmers to think about any farm animal – be it a sheep, cow or dog – and look at how they behave. “If they are short of water they go and have a drink. When a human is short of water, they ‘feel’ thirsty and it is the thirst

is thirst, the outcome is to correct your body water balance. The same applies to hunger,” he says. Pain is another issue Mellor says animals react to in similar ways to humans whereby they seek relief. It’s been observed in some instances that when animals are being treated for a painful injury they recognise humans are

helping them and can be more passive during treatment. “So there’s a range of these sorts of things where most farmers would say yes, of course, animals must experience thirst, hunger, breathlessness and pain and when they have a viral infection they experience symptoms of malaise and things like that,” he says. Mellor says humans have underestimated the conscious responsiveness and sensitivity of animals. He says if farmers manage pain in their animals well, at the same time they will manage quite a wide range of other animal welfare issues, because of the

many different causes and kinds of pain. “It is recognised that animals have general ‘subjective experiences’ that can be nasty, neutral or nice, just as humans do. What’s happened in the last few years is that increasingly people have recognised there is a range of ‘subjective experiences’ that can be generated in animals by what’s going on in their bodies. These can get to the stage of being extremely unpleasant to the extent they cause suffering and stress. “So what I’ve been advocating more recently is the value of being explicit about what those experiences might be so

that people are more alert to the sorts of things animals can experience and what they need to do to safeguard the welfare of animals,” he says. Farmers need to be ‘connected’ to their stock, says Mellor. They once were, 30 or 40 years ago, in respect of animal husbandry, but they did not have quite the understanding of what they needed to be alert to regarding the ‘feelings’ of stock. “Now, with the focus on animal production with a greater number of stock units, there is less direct engagement by farmers with their stock,” he says. But with greater awareness of the needs of animals, it is possible to better manage the needs of these animals even when they are kept in large numbers. He says while it’s known animals can have experiences that may be mildly negative to excruciatingly awful, they can also have positive experiences. This theory has been advanced for quite a long time by scientists but until

relatively recently there was not a clear understanding of the underlying brain mechanisms in animals. Now our knowledge gives farmers more reason to take note of this. “Now there are well defined brain mechanisms, identified in human beings and increasingly recognised as operating in other mammals and birds. The science is showing that animals have the capacity to make choices on what food they eat and how they behave if provided with an environment in which this is possible.” Simply giving animals the amount of food they want in a few meals a day and having water ad lib may not satisfy the wider requirements of that particular animal. He points to zoos where animals are being given the opportunity to experience social rewards by giving them company. He’s not suggesting the same for farm animals, but simply pointing out that farm animals also have the capacity to do far more that eat, sleep and breed.

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36 animal health

Season helps minimise health issues PETER BURKE

FOR MUCH of the country, grass growth has been well above average and this, according to Horowhenua veterinarian Rob Bloomfield, is aiding animal health. Stock are so well fed they’re able to fight off challenges and while pas-

ture quality may not be ideal, its length is eliminating some of the worm problems usually occurring at this time of the year, he explains. “Worm larvae intake is worse when you get down on the pasture… They are still there and farmers should have a worming programme for all stock

types, especially young ones, but it’s not as critical as it was. I would imagine they are not losing as much production from worms as they normally do.” Bloomfield notes that if conditions remain as they are in autumn there will be facial eczema spores in the pasture. However,

they will be in the bottom of the sward and therefore pose less risk. “The top of the farm which a lot of the animals are now eating will have less spores. The worst outbreaks of facial ezcema are usually straight after a drought when animals are eating close to the ground.”

Rob Bloomfield

For farms that normally ‘deck’ paddocks in summer there’s another benefit: because the pasture hasn’t been hammered it will come away better. “The other thing is that if an animal is in good condition and has been fed well it will cope better with a dose of worms anyway. When they are being well fed they can cope with anything; not only younger stock but older cattle with higher body condition scores can cope with these things a lot better, including a short-term feed shortage.” But one problem that has surfaced this summer more than usual is bloat,

he adds. “We haven’t seen bloat in dairy cows for years in this area, but we also haven’t seen the amount of clover in pastures that we’re seeing now for many years. “There is clover everywhere, in fact in some cases there is more clover than ryegrass.”

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THE BRITISH Veterinary Association is advising vets and farmers to familiarise themselves with the clinical signs of Schmallenberg virus, a new and emerging disease in Europe. “Farmers and vets should be extra vigilant where ruminants have been imported from the affected areas (Germany, Netherlands, Belgium),” says BVA president Carl Padgett. Symptoms in adults are quite generic but the disease hits “a few” animals at time, rather than individuals, he notes. “Clinical symptoms initially reported in the affected areas include fever, reduced milk yield, loss of appetite, loss of condition and in some cases diarrhoea, with clinical signs disappearing after a few days.” Possible associated birth defects are being investigated.

Johnes deduction cut DEER FARMERS’ voluntary contribution to Johnes disease control has been cut from $1/ head to 80c. Johne’s Management Limited (JML) chairman Geoff Neilson says after five years’ operation JML’s control programme is increasingly efficient and world-class. “Initially it was a new programme in new territory, so we could only make a best estimate of the costs involved. Now, we have a much clearer understanding of the costs.” The programme enjoys excellent industrywide support and positive inroads into Johne’s have been made, particularly on farms with high incidence, he adds. Around 40 farmers have implemented on-farm programmes to reduce the disease and more are expected to do so in coming months as other farmers see the success stories. “The cost is proving a worthwhile investment to farmers.”

Rural News // january 24, 2012

animal health 37

Researchers close in on fertility genes GENETICISTS ARE closing in on why some cows conceive where others don’t. DairyNZ and Ministry of Science and Innovationfunded research by DairyNZ scientist Caroline Walker, in collaboration with Auckland University’s Liggins Institute, found about 1500 genes affecting the uterus are altered in pregnant cows. “This gives us a greater understanding of the reasons for sub-fertility, and puts us in a better position to discover gene markers that will produce bulls that give greater fertility,” says Dairy NZ principal scientist John Roche. “It’s essentially enabled us to narrow down what we’re looking for.” Walker’s work, part of her PhD studies over the past three years, looked at differences in expression of key genes in the uterus in pregnant and non-pregnant cows from two breed strains: US Holsteins and NZ Holsteins. “We already knew that the New Zealand cow is better at establishing pregnancy,” says Roche. “Conception rates are 50-60% for New Zealand cows, compared with approximately 40% for US cows. “Caroline’s work has shown us some of the reasons why... she’s identified some of the genes which determine this. The next step is to look at Peter Gatley epigenetic changes, which are things that happen to alter the expression of genes.” Roche says it’s “extremely exciting work” because understanding the underlying physiology of pregnancy has great implications for improving fertility of the national herd. LIC general manager genetics, Peter Gatley, says the work is welcome but reminds Rural News readers that genetics is just one piece of the fertility jigsaw. “Fertility is crucial in New Zealand’s seasonal system so it’s essential that we retain our genetic leadership, and genomics is particularly relevant for this trait because it takes so long to be expressed through progeny testing. “Every contribution to our understanding of fertility is very welcome, but we must always remember that most variation in on-farm reproductive performance is due to management rather than genetics”. Walker’s paper, “Endometrial gene expression during early pregnancy differs between fertile and sub-fertile dairy cow strains” is published in the international journal Physiological Genomics. “This is ground-breaking research published in a highly-regarded international journal,” says Roche.

New Zealand cows are more fertile. Geneticists aim to find out why.

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38 animal health

US survey finds concerns with organics ALAN HARMA N

ORGANIC FARMERS in the US report a large degree of independence in dealing with herd health challenges, but veterinarians surveyed say there are various health concerns possible on organic farms and their involvement in those systems is important.

Researchers from the Leopold Centre for Sustainable Agriculture at Iowa State University did the survey to determine whether those involved with organic livestock production (on both sides) had access to the information necessary to deal successfully with challenges to livestock health, and provide suggestions for

improvement based on the experiences of major stake holders. They found organic producers prefer to handle most routine health treatment without consulting outside help and report a lack of herd health challenges as the primary reason for this preference. Veterinarians expressed confusion about

how to best serve organic producers and where to acquire reliable information. They also indicated overwhelmingly that suitable information was either unavailable or difficult to access. The veterinarians saw weaknesses in management and herd health care protocols in organic systems and noted that

producers should seek veterinary care advice more frequently than they do. Several expressed concerns regarding animal welfare as well. Most said veterinary professionals should be active in the development of organic agriculture through traditional on-farm involvement, stressing the importance of preventive

management. Investigators Betty Wells and Jennifer O’Neill report 337 veterinarians responded to the survey for a response rate of 69.2%. Among the respondents, 41 veterinarians indicated they did not provide services to producers raising food animals and were excluded from the analysis. “While most veterinarians expressed some reservations about organic production, the majority did indicate some level of interest,” the survey report says. “A smaller but still significant subset of veterinarians favour injecting organic agriculture education into veterinary medicine programmes, and several expressed the need for formal research on alternative treatment options.

“The open-ended comments showed a high degree of veterinarian misunderstanding regarding the definition and rules of organic production, existence of national standards, and information access.” The researchers say the data collected provides an important argument in favour of increased education options within the university veterinary medical school and through continuing education. “This could result in greater levels of veterinary involvement in organic systems, which could in turn result in improved herd health for these producers,” they say. “Hopefully, it has raised awareness among veterinarians, who have now been exposed to some discussion of the topic.”

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

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THE UNITED States Food and Drug Administration (FDA) is to ban routine use of the cephalosporin class of antimicrobial drugs in cattle, pigs, chickens and turkeys in a move aimed at preserving their use in human medicine. The FDA says it is taking the action to reduce the risk of resistance in bacterial pathogens. Uses banned include injection into chicken eggs and ‘bio-bullets’ in beef cattle. The drugs are commonly used in humans to treat pneumonia, and skin and soft tissue infections. They are also used in the treatment of pelvic inflammatory disease, diabetic foot infections and urinary tract infections. The FDA ruling, effective from April, also bans ‘extralabel’ or unapproved uses of cephalosporins in major species of food-producing animals. In 2008 the FDA issued then revoked a similar order, but unlike the 2008 ruling, the latest move won’t limit use of cephapirin, an older cephalosporin drug not believed by FDA to contribute much to antimicrobial resistance. Vets will still be able to use or prescribe cephalosporins for limited extra-label use in cattle, pigs, chickens or turkeys as long as they follow the dose, frequency, duration, and route of administration on the label. Vets may also use or prescribe cephalosporins for extra-label uses in minor species of food-producing animals such as ducks or rabbits. “This is an imperative step in preserving the effectiveness of this class of important antimicrobials that takes into account the need to protect the health of humans and animals,” deputy commissioner for foods Michael Taylor says. National Chicken Council spokesman Tom Super says he’s concerned the FDA’s rule will take medical decisions to treat animals out of the hands of vets. “We question any substantive link or scientific basis between veterinary use of cephalosporins and antibiotic resistance in humans.” The Animal Health Institute also says it is concerned about the FDA taking medical decisions to treat animals out of the hands of vets. “Extra-label drug use is strictly limited by law… It can only be done by a licensed veterinarian in the existence of a valid veterinarian-client-patient relationship. It can only be used when no approved drug is available in the necessary dosage form.” to page 39

Rural News // january 24, 2012

animal health 39

Consider fungicide to combat FE key points with fe

Monitor spore counts – pasture or dung. Treat before thresholds reached. Fungicide pasture treatment avoids downsides of zinc. Effective application key. Beware substantial losses possible even if no symptoms seen.

“But it’s useful to know in retrospect... If something’s not right at that stage, you know you’ve not been doing enough [to prevent FE].” Spore testing pasture or dung samples taken off the yard after milking is an effective check on exposure during the FE season, he suggests. So far spore counts have been low this year, but with excessive grass growth in many areas there’s a risk counts could explode later due to a build up of dead material and with it the causative fungus in the base of swards. While it’s predominantly a North Island issue, especially in lower-lying and coastal areas, some warmer parts of the South Island such as Nelson and Golden Bay can also be affected, he points out. If opting to use fungicide for prevention, Goble says apply before pasture spore counts top 10,000/g, and ensure even coverage of pasture, including litter layer. Adding a surfactant such as Sporewet improves coverage and speeds rainfastness. Water rates of at least 100-200L/ha are needed to ensure pasture is adequately saturated with active.

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in the sand about zinc.” However, failing to act if spores EVEN IF you don’t see clinical signs of the causative fungus, Pithomyof facial eczema (FE) in your stock the ces chartarum, are present in pasfungal toxin-induced condition could ture can also cost dearly in lost be costing you dearly, warns farmer- production, even if no visual symptoms are seen, he warns. owned co-operative Ravensdown. There’s also the animal welBut rather than reaching for the zinc – common practice on farms fare aspect. “It’s a hideous disease,” says recognising the problem – Ravensdown vet Gavin Goble says consider Goble, who practiced in Waikato fungicide treating pasture as an alter- for 14 years and saw cases frequently before moving to Christchurch and native. “Most farmers don’t know about joining Ravensdown. “For the animal it would be simor don’t trust the use of fungicide,” he told Rural News. “But if you do a ilar to having the worst hangover you’ve ever had proper job, and do it early and then put enough, we know you don’t severe sunburn have to worry about dosing on top of that as with zinc.” well. These aniProduct prices have mals are miseratumbled in the past decade ble. It’s criminal and Ravensdown’s Sporeif people don’t guard – a carbendazim fortake action.” mulation with a specific The toxic registration for use as an spores cause liver FE control – can come in damage and it is at under $10/ha, excluding Gavin Goble the liver damage application costs. Assuming a reasonable stocking which can cause photosensitisation, rate and effective application, that’s and consequent sunburn. But absence of sunburnt cows or comfortably less than dosing with a zinc bolus which typically costs $2-3/ sheep doesn’t mean they’re not sufsheep and $4-10/cattle beast, depend- fering, as blood tests or liver biopsies can reveal. ing on the size of animal, he says. “For every clinical case there will Putting zinc in the water system will be cheaper, but it is a “hit and be a number of sub-clinical ones... miss” method of prevention due to In one herd I tested there wasn’t a variable intakes by animals, both single clinical case yet 90% had liver as individuals, and as driven by the damage.” Blood tests for FE can be done weather. Zinc also taints water and can sup- at the same time as trace elements, press appetite and production, he though the usual autumn timing of the latter will be too late to act on FE points out. “Some people have got their heads in that year. a ndr ew swa l low

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Similar moves elsewhere from page 38

German Agriculture Minister Ilse Aigner is proposing legislation limiting the use of antibiotics in livestock, prompted by an ecologist

group’s research showing large amounts of antibiotic resistant bacteria in supermarket chicken. That’s raised fears of reduced efficacy of human medicines. Aigner says she wants

to reduce to a minimum the use of antibiotics in treating animals for slaughter, as opposed to breeding stock. Elsewhere, a report by the Alliance to Save Our Antibiotics has claimed

an alarming rise in new farm superbugs, particularly MRSA and E. coli, being passed on to humans. It says this is because nearly 50% of all antibiotics are used in farming.

Fly, Maggot and Lice Eliminator Spinosad is the same active ingredient found in Extinosad® Liquid. Cyromazine is the same active found in Vetrazin®. The 5L pack of Cyrex makes 2500 litres of dipwash; 10L makes 5000 litres and 250ml bottle makes 125 litres of dressing fluid. Extinosad and Cyrex are registered trademarks of Eli Lilly and Company Ltd. Vetrazin is a registered trademark of Novartis. Cyrex is registered pursuant to the ACVM Act 1997, No. A09917.

Rural News // january 24, 2012

40 machinery & products

Tracks avert problem of beaten-down soil TRACKS HAVE beaten the problem of soil compaction on a Pukekohe mixedcrop farm. Harry Das and family grow mainly potatoes and onions, and some lettuce, spinach, cauliflower and pumpkin. It’s an intensive operation, something they’ve done for 50 years. B. Das and Sons Ltd crop 200 ha, employing 15 people all year, plus an extra 20 during the season. They already had 20 tractors but the tracked machine was different. Das says seven years ago “a friend asked ‘why not get tracks?’ We looked into it and the dealer dropped one off for us to try. We fell in love with it.” The machine is a 250hp MT745 Challenger. “The engine has a lot of torque for deep ripping and power harrowing. We

need the engine to hold its power in those operations.” The ripper has seven tines that run 750mm deep, and the whole unit is 3m wide. The Challenger hauls the ripper without any sign of strain. Das also likes the hydraulics, which can easily lift a 5-furrow plough, and the transmission, which shifts smoothly within the ranges. But the best feature, and the real reason they got it, was to avoid soil compaction. Das says they could notice the difference it made within a year. “When you go to ridgeup, the moulders flow through the ground without resistance, and they get good depth. When we did those jobs with dual

Harry Das, Pukekohe, uses a Challenger MT745 for heavy groundwork because it delivers power but causes no compaction.

tyres it was trampled and you could feel it when you hit a wheel track.”

He says with the Challenger’s rubber tracks, the work is 90% consistent

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now and there’s no compaction. The Challenger is the only tractor doing the ripping, power harrowing and discing in Das’s operation. That’s all it does from December to April. In that period it works 500 to 800 hours. The rest of the year

it’s parked up, as the Pukekohe soils don’t drain well and Das avoids putting extra machinery on it. The MT745 is five years old and expected to last six or seven years longer. It cost more than a wheeled tractor but has been worth it.

Bike sales up STRONG SALES of ATVs (up 10.9%), offroad motorcycles (up 8.9%) and under 50cc on-road bike sales (up 7.3%) saw the motorcycle sector up 6.6% on 2010 sales. “The strength of the rural sector and higher petrol prices were the reasons for a relatively buoyant year for the new motorcycle sector,” says Clive Hellyar, manager of the motorcycle division of the Motor Industry Association. “Only the on-road category of over 50cc saw declining sales (down 3.5%), part of which can be attributed to the effect of high ACC levies.” Total new on-road registrations for 2011 were 6376 compared with 2010 registrations of 6351. Total off-road sales for 2011 were 13106 units versus 11945 in 2010. The top three in off-road product sales were Honda, Suzuki and Yamaha.

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Rural News // january 24, 2012

machinery & products 41

‘One man easy’ baler-wrapper ‘ONE MAN easy’ summarises the running of a new compact baler-wrapper from Kuhn. The company says its i-BIO baler-wrapper combination is a “light-weight, efficient and high-speed one-man” machine. It weighs no more than 3.5 tonnes (unloaded), is “manoeuvrable and suitable for smaller tractors and ideal for small paddocks with narrow access and hilly areas.” Isobus-compatible and using Kuhn’s patented IntelliWrap bale wrapping facility and new forage intake system (integral to the machine), the i-BIO requires no bale transfer during the making/wrapping process. Instead the upper part of the bale

chamber opens after bale formation and binding, allowing pre-stretchers (fitted on a crown gear) to carry out the wrapping. The machine has a 2.3m wide pick-up. The IntelliWrap system uses electronics and hydraulics to gain flexibility and control during wrapping. The system allows control of the percentage film overlap and enables the number of film layers to be set simply by pressing a terminal key. The operator gets a good view, from the tractor seat, of all net binding, wrapping and discharge operations, without need for a camera. Tel. (0800) 585-007 www.kuhn.co.nz

More call for Fieldays sites DEMAND FOR National Fieldays sites is up 13% on 2011 applications, says events manager Vanessa Richmond. To date, 88% of all agricultural sites have been sold, well ahead of previous years. And the Rural Living area, comprising 8% of the show, is in greater demand. Businesses are taking more space to showcase products and services, Richmond says, “With exhibitors requiring more space, it’s clear businesses involved in agriculture realise the benefits of a presence at Fieldays.” ‘The Changing Face of Farming’ is the 2012 Premier Feature, focusing on the various land ownership models and change in farming approaches. The theme incorporates the trend from traditional family owned farms and in turn the effects on the rural landscape. Other changes include a larger international exhibition area in the pavilion. And the Kiwi’s Best marquee will also increase in size, with primary production celebrated as an important part of agriculture. Sites are now assigned in order of demand. Fieldays will be held June 13-16 at Mystery Creek Events Centre, 10 minutes south of Hamilton. Tel. 07 843 4499

Growers’ tractor

Tel. (0800) KUBOTA www.kubota.co.nz

40.4

CAN-AM OUTLANDER 500 POLARIS SPORTSMAN 550

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GROWERS ARE in view for Kubota’s new M96S Mudder tractor – an example of the Japanese maker’s resurgence in farm tractors, says the local distributor. Serious attention has been paid the engine, a ‘new generation’ 95hp unit with four valves per cylinder, meeting recent Tier III standards. This engine also has a twin air-intake passage in the cylinder head to make sure each intake valve gets the correct amount of air for optimum ‘swirl’, giving a cleaner burn. For ‘inching’ during implement hook-up, a proportional reducing valve allows half-clutch operation with the feel of a conventional clutch. Transmission is 4F/4R. And ‘swing shift’ allows the operator another hi–lo choice engaged electronically via the gear lever. Hydraulic pump flow is 65L/m.

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Rural News // january 24, 2012

42 machinery & products

Ploughing niche for dairyshed man ton y h o p k i nso n

FOR SOMEONE who has not done a lot of competitive ploughing, Colin Millar, of Rotorua (formerly of Reporoa), has come to the fore in this farming ‘sport’. He was elected president of the New Zealand Ploughing Association in 2001, and in 2011 was elected junior vice president of the World Ploughing Organisation (WPO). “I first joined the Reporoa-Rotorua Ploughing Association in 1976 and was president 1992-2007. I became involved with the organisation and my interest has grown.” Millar left school aged 16 and took the farm cadet path, then drove tractors for local contractors, went

contract milking, then 50:50 milking, and finally bought a farm in Reporoa. In 1982 he bought a local engineering business designing and building mobile yard gates for rectangular yards – especially suitable for the region’s growing herd sizes. These gates are now made under licence in South Africa, England and Australia. At least 600 are installed in dairy sheds in New Zealand. Since 1993 the business has built complete dairy sheds, from small herringbones to 80-bail rotaries, installed in UK, Denmark and the US. Millar now retains a minority interest in the business. He has officially been a ploughing judge since

1985, attending his first world event in Canada in 2003. In 2005 he coached the New Zealand team at the World Championships in the Czech Republic. Because of the complexities of travel the WPO plans championship events well ahead. The world championships were held here last year and New Zealand will next Colin Miller holds the ‘tail piece’ host the event in he designed. 2025. right), organising the 2012 This year he is repreploughing championship senting the New Zealand finals to be held near Camexecutive on the commitbridge on April 14 and 15. tee under the chairman“The event starts with a ship of John Guy, (picture

Tail piece gives the OK THIS ‘TAIL piece’ (picture above, held by Colin Millar) measuring device confirms the tail pieces of the ploughs are within the correct dimensions. The tail piece, situated behind the mould board, manipulates the furrow position as it comes off the mould board. The rule book states the tail piece dimensions, curvature and the distance it is allowed to

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protrude. This was formerly done by sight and tape measure, opening it to differing interpretations. Colin Millar devised this device some years ago to prevent confusion. It has been adopted by the WPO as standard equipment. All ploughs are checked by a rules committee before every event.

John Guy (inset) studies his work.

church service on April 10, then drawing of plots and practice can commence,” says Millar The open championships final for conventional ploughs (16 entries) will be sponsored by Case IH. The reversible plough section (6 entries) is sponsored by CRT Fuel, the vintage section (7 entries) by Mainland Minerals and

the horse-drawn ploughs (5 entries) by Rural News Group. Results will be collected at the conclusion on the Sunday afternoon, then collated. The winners of the various sections will be announced on the Sunday evening at a formal dinner in Cambridge. The winner’s prize in the conventional and reversible plough sections

includes a travel package to represent New Zealand at the next world championships in Canada. “As part of the competition we also make available tractors and ploughs for anyone who might be interested to test their skills.” The public are invited to attend. Entry costs $10 per person aged over 12.

Long furrow to winners’ podium A LONG and involved process will lead to the championships finals of New Zealand Ploughing Championships to be held at Aspin Road, Fencourt, Cambridge on April 14 and 15. Three years ago the Waikato Ploughing Association applied to stage the New Zealand championships finals. A large area is needed for the championships finals as well as

a practice ground, preferably nearby. Representatives of the New Zealand Ploughing Association check the area, considering soils and availability of accommodation, and taking account of where previous finals were held to make it fair for contestants having to travel. They also appoint a member to the organising committee.

To be eligible to compete an entrant must have won a contest run during the previous calendar year by the New Zealand Ploughing Association. Competitions involve ploughing two similar sized areas. On the first day an area of stubble is ploughed. This is after a crop of wheat or barley has been removed. So the crop has to be planted and har-

vested at the correct time. All ploughs are two-furrow. Entrants with conventional ploughs plough a rectangular area measuring 20 x 100m. Those with reversible ploughs plough an area 100m long x 16m across one end and 24m at the other. Vintage ploughs work a rectangular area of 20m across and 60m long and the horse drawn ploughs work an area 15m across by 60m long.

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Rural News // january 24, 2012

machinery & products 43

‘More than just a grass mower’ A NEW ‘sub-compact’ utility tractor (1 series JD 1023E and 1026R), for work around home, will

run implements and mow large volumes of grass with a high quality of cut, the maker says.

“Never before has there been this much versatility, comfort and mowing performance in the sub-com-

Kubota compact NEW FROM Kubota is the 33hp compact utility tractor B3300SU. It takes a front loader, tows trailers and handles 3-point linkage implements,driven via a wet multi-disc clutch. Power comes from a 4-cyl. Kubota E-TVCS engine driving through a 3-speed hydrostatic transmission – good for repetitive forward and reverse work. Other features: power steering, integrated loader valve and a large operator platform A front loader is available, lifting 483kg to a height of 2098mm.

pact tractor market,” says Dan Paschke, John Deere product marketing manager. “The 1 Series offers a wide array of features usually seen on larger tractors such as a deluxe lighting package, position control 3-point hitch, and great storage for tools.” The 1023E (17.3 kW) and 1026R (18.5 kW) can accept dozens of attachments and implements, such as front loaders,

Tel, (0800) KUBOTA www.kubota.co.nz

mower decks, rotary tillers, and even a backhoe. Using the maker’s AutoConnect technology, operators drive over the top of the mowing deck to attach it to the tractor. In addition, iMatch AutoHitch, compatible 3-point hitch implements, can be attached or removed from the tractor’s 3-point hitch in minutes without leaving the seat or using a single tool.

Both tractors have a wide ‘footprint’ for increased stability, and a standard folding ROPS system for roll-over protection. The 1026R also has lightings, cruise control for mowing in open fields, tilt steering, a tool box, a 12-volt outlet, and a position control 3-point hitch which allows the operator to return to the hitch to the same height easily.

When mowing, operators can adjust mowing height from the seat of the tractor with the deck height adjustment knob, and process high volumes of grass with the JD 7-Iron deck, made from 7-guage steel. “The 1 Series is the perfect tool for property owners who need to do more than just mow the grass,” says Paschke. Tel. 0800 303 100 www.johndeere.co.nz.

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Rural News // january 24, 2012

44 machinery & products Gather those bundles HAY BALE ‘bundling’ (collecting, stacking, tying) is said to be easy with a new machine from Giltrap Agrizone. The Arcusin B14 multipack stacker, made in Spain, collects 10, 12 or 14 conventional bales and ties them ready for collection. It can gather 500 bales an hour. “It is fully automatic but can be operated manually from the cab or from the machine when it is stationary,” says product specialist, Greig Singer. Tied bales can be wrapped or, if necessary, lifted by a Stolle Pro-H attached to a frontloader onto a truck. Minimum power 95hp. Tel. 027 266 7897

Simple device prevents disc mower damage A SIMPLE new overloadprotection device for Fella disc mowers (those with compact angle drive) prevents costly damage to the cutter bar, reports CB Norwood Distributors. The Fella driveGUARD – an “ingenious disc” – can be retro-fitted at minimal cost. Since stones and other paddock junk cannot be completely avoided, some risk of mower damage is always present, the company points out. And when it happens, the downtime and repairs are costly. The driveGUARD sits outside the cutter bar under the mower disc. A two-part profiled flange connected by the overload disc and a roller

bearing ensure torque is transmitted safely. The overload disc itself is a slotted steel plate. The shape and thickness of the steel plate, together with the slot profile,

train, and the mower disc turns freely. The mower

determine the safety area between the inner and outer ring offering precisely defined shearing torque. If a foreign object blocks the rotation of a mower disc, the driveGUARD shears off at the defined breaking points. This interrupts the power

disc remains firmly connected at all times to the cutter bar via the outer part of the profile flange. The sheared plate is simply replaced and work continues. Because of the positioning of driveGUARD on the exterior of the cutter

bar, costly damage to the gearbox, long downtimes and contamination of the oil circuit are prevented. Even the loss

of the mower disc is safely prevented. Mower owners can buy the driveGUARD as a wear part (for example, cutter blades) and replace the part themselves quickly and cost-efficiently.

Launched last November at Agritechnica, driveGUARD will become a standard feature of all new Fella disc mowers with compact angle drive. Tel. 06 356 4920

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HEAVY-DUTY loaders from John Deere equally suit many sizes of the company’s new and older model tractors. The new H Series loaders, which replace the previous loader models, have more cast-steel connecting points and better visibility, and they have integrated components that make installation and removal easier. The H Series loaders, compatible with many John Deere tractor models, have different levelling options, non-self levelling (NSL) or mechanical self-levelling (MSL), depending on customer needs and legal/ safety requirements. More cast-steel components in highstress, high-load areas of the loaders helps them handle big jobs with ease and extend

working life, a JD spokesman says. “All major boom pin connection points are cast-steel for better pin alignment and reduced load stress which is an improvement over traditional bushing-type joints. “We’ve also designed the H Series with a lower torque tube and concealed oil lines within the loader boom to give it a cleaner look, improve over-the-hood visibility and reduce potential for damage to oil lines.” In addition, John Deere has added integrated parking stands and pins into the loader which, combined with a singlepoint hydraulic connection system, allows the loader to be quickly removed or reinstalled with virtually no oil loss. Tel. 0800 303 100 www.johndeere.com.au

Rural News // january 24, 2012

motoring 45

When you need to go very fast US ATV maker Polaris has launched another “extreme performance’ 4x4 sideby-side machine: the RZR XP 4 900 with grunt – 88hp. Only the Limited Edition model will be sold in New Zealand. Production is now underway in the USA. Says Polaris, “The ultimate combination of power, suspension and agility is found in the RZR family. “The RZR XP 4 900 is the most-capable, highest-powered, multi-passenger side-byside with the longest wheelbase making it the ultimate performance vehicle in the market place.” It has many of the features of the RZR XP 900 launched last January: 88hp ProStar 900 twin engine, 3-link trailing arm independent rear suspension (IRS) with 31.8cm ground clearance and 35.6cm travel, on-

demand true AWD and low center of gravity; and a 271.8cm wheelbase. “Polaris continues... developing highly sought-after vehicles that offer the ultimate combination of power, suspension and agility,” says Peter Harvey, country manager – Polaris Australia and New Zealand. “With the instant success of the RZR XP 900 and the popularity of multi-passenger vehicles throughout the industry, it was a natural progression to develop an extremeperforming vehicle that four can enjoy.” The 88hp ProStar 900 Twin EFI engine was built specifically for extreme performance and first installed in the RZR XP 900. The engine has dual overhead

cams (DOHC), four big valves per cylinder and dual throttle bodies located close to the intake valves for fast throttle response and acceleration. To handle this much power and still keep the ride smooth, the RZR XP 4 900 features a 3-Link trailing arm IRS. The 3-link design consists of two extra-long radius rods and a far forwardconnecting trailing arm – strong yet light. And, for the first time on a side-byside, the RZR XP 4 900 will have 6.4cmbody Walker Evans rear shocks, the largest stock shocks on the market. These deliver higher damping forces and avoid shock fade compared to a 2-inch body shock,

thanks to a 35% larger piston area that reduces internal pressure and heat generation. The shock also contains 35% more oil to slow the rate of heat buildup. Centre of gravity is low. The enginebehind-the-seat design and the placement of key components make for even weight distribution. To provide precise cornering, the suspension’s radius rods extend deep into the wheel hubs and feature an uneven link geometry that optimises camber. This allows the tyres to lean into the corner through the suspension travel, and plant more surface on the ground for maximum control. Tel. 0800 440 290 www.polarisindustries.co.nz

Only the best for New Zealand “THE POLARIS RZR 4 will appeal to Kiwis who want the best of everything, so we will only import the Limited Edition version of the RZR XP 4 900,” Polaris NZ says. The Limited Edition (LE) model has extra features such as electronic power steering for added control and less rider fatigue. “The LE is also fitted with all the

custom features, such as automotivequality Vogue Silver metallic paint, new graphics, colour matched seats, springs and cab.” For those wanting even more customization, available at launch will be dozens of genuine Polaris accessories, such as screens, roof, harnesses, storage and stereo.

Rural News // january 24, 2012

46 harvest wrap / rural trader

Yield prospects span the extremes fortnight later.” While little has been headed, windYIELD EXPECTATIONS of cropping rowed herbage seed in the area is lookfarmers around the country range from ing promising, and process pea crops very good to disappointing as the first taken so far have done well too, he adds. In Southland, Feds Grain chair John headers roll. Gardyne is less bullish While it’s a late start about yields but recent in Canterbury, it’s been rains probably arrived just worth the wait with some in time for many crops. bumper crops of autumn “We had four inches of sown barley coming in. rain at the weekend which “I’ve spoken to three could have saved the different dryland farmers winter wheat a bit, and and they’ve all been hitmaybe even some of the ting 10t/ha where they’d autumn [sown] barley.” normally only expect to Hew Dalrymple As of the middle of last get 7t,” Federated Farmers Grain North Canterbury chairman week he’d only heard of one barley cut, Murray Rowlands told Rural News. autumn sown doing just under 10t/ha. “There are some huge volumes of straw “So the yields might be better than we think... But some of the grain’s probably underneath as well.” The high yields are creating a few going to be a bit shrivelled and there’s storage headaches, particularly with only half the straw there normally is.” The rain should have saved spring some merchants dragging their feet on prompt movement contracts, he barley and oats, but winter feed crops notes. “Prompt means prompt, not a are the worry. a ndr ew swa l low

“The big problem is swede and kale crops. They’ve either not germinated or germinated and died. If they don’t come through in the next week they’ll have to be sown with soft turnips or rapes.” In the south of the North Island Hew Dalrymple, Bulls, said harvest had hardly started last week. “There’s a tiny bit of early stuff been done but the bulk of the winter wheats and early spring barleys, they’re all about two weeks away. Then there will be a massive delay until the late spring crops are ready.” Late sowings and excess rain mean for many it’s looking “a very ugly season” he says. “There are a lot of yellow, drowned crops around, the late planted ones.” Maize is similarly variable. “The early stuff looks okay but there’s maize that’s only six inches high when it should be six feet.” In North Otago former world record wheat yield holder Chris Dennison took his first barley last week. “I’m delighted.

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Retriever winter barley’s done just over 11t/ha I reckon... It’s exceeded expectations.” Sold off the header at $440/t the crop was “going south.” He rates wheat prospects as “good

All smiles: Contactor Duncan Copeland and grower Andrew Waddell say uncertified Italian ryegrass, headed just before rain earlier this month, looked like doing a couple of tonne undressed. “It was sown as sheep and cattle feed last January and we just shut it up and it’s grown again,” Waddell told Rural News. Reports from elsewhere in Canterbury are that herbage seeds and early barleys are all running well.

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but not exceptional.” “There’s a huge amount of septoria in the crops which has crept up to the upper leaves over Christmas. That’s despite a robust fungicide programme.”

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Rural News // january 24, 2012

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