Rural News 5 June 2012 by Rural News Group

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Ahuwhenua revisited

Former dairyman shows how to get over things safely. page 78

Good management driving excellent returns. pages 64-65

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june 5, 2012: Issue 516â&#x20AC;&#x192;

www.ruralnews.co.nz

50% not good enough SU D ES H K I SSU N

FONTERRA CHAIRMAN Henry van der Heyden says TAF (trading among farmers) will not proceed unless â&#x20AC;&#x153;a clear mandateâ&#x20AC;? is delivered on June 25 by shareholders. The Fonterra board is seeking a simple majority but van der Heyden has made it clear a 50.1% majority wonâ&#x20AC;&#x2122;t be good enough.

â&#x20AC;&#x153;I want a clear mandate,â&#x20AC;? he told Rural News. â&#x20AC;&#x153;I canâ&#x20AC;&#x2122;t say what a clear mandate is but if itâ&#x20AC;&#x2122;s a 50% plus vote, the board will not recommend to proceed with TAF. â&#x20AC;&#x153;I want a mandate that will unify the co-op around this proposed evolution in our capital structure. This is the final vote in a long process. Shareholders have given us strong support in the earlier stages and this is what the board

is looking for this time.â&#x20AC;? In June 2010, 90% of Fonterra farmers backed TAF. But support for the proposed share trading scheme is waning over concerns about losing 100% farmer ownership and control. On June 25 the board will table an ordinary motion requiring a 50.1% majority. Fonterra shareholders received their voting papers last week. TAF critics wonâ&#x20AC;&#x2122;t be happy with the ordinary vote.

For Larry Green, this is almost the end of the road at the Manawatu Gorge. For nine months the road has been closed and he has been the site supervisor since a huge slip blocked the road forcing all vehicles, including stockand logging trucks and milk tankers to use the alternative routes. These routes - the saddle road and Pahiatua track are long and winding and have added to twenty minutes to the normal journey through the gorge. As Rural News went to press, Green and his team were putting the finishing touches to the road which would see one lane open. â&#x20AC;&#x201C; See story on pages 24-25 on similar problems in the Gisborne region

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Ashburton farmer Eddie Glass, who spearheads opposition to TAF, expects about 30% of shareholders to oppose the TAF resolution. He says a 30% â&#x20AC;&#x2DC;noâ&#x20AC;&#x2122; vote may mean the end of TAF. â&#x20AC;&#x153;TAF is being promoted as the cure for the problem and it may end up becoming the problem. If 75% of farmers back TAF, we all have to get behind it. The TAF vote is meant to unite us and that remains to be seen.â&#x20AC;? Fonterra capital structure subcommittee chairman John Wilson is confident TAF will be approved. Wilson, who also sits on the due diligence committee, says some TAF critics are misleading farmers. â&#x20AC;&#x153;As a farmer I know TAF delivers 100% ownership and control.â&#x20AC;? Van der Heyden and Wilson will this week join other board members for shareholder meetings around the country. Van der Heyden will speak in Bay of Plenty, Waikato and South Canterbury, a hotbed of TAF opposition. Van der Heyden says the board is unanimous in its support for TAF and the challenge this week is to get farmers on the same page. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot of information to consider, and weâ&#x20AC;&#x2122;re taking every opportunity to ensure farmers are as informed as they can be when they vote on June 25.â&#x20AC;? Fonterra Shareholders Councilâ&#x20AC;&#x2122;s new chairman Ian Brown says 92% of the 35-member council backs TAF. He expects some questions from shareholders on the size of the shareholders fund and milk pricing at this weekâ&#x20AC;&#x2122;s meetings.

Government calls in experts THE GOVERNMENT is appointing a review team to help the Kaipara District Council, after residents threatened a rates revolt over increases averaging 31%. â&#x20AC;&#x153;It has become apparent the Kaipara District Council is dealing with some serious issues it cannot cope with alone,â&#x20AC;? says Minister for Local Government David Carter (pictured). â&#x20AC;&#x153;The council has sought help from central government and the wider local government sector.Â We have agreed to work with the council and Local Government New Zealand to set up a small team to assist Kaipara to work through its issues. â&#x20AC;&#x153;The council recognises the assistance the Government can provide is limited.Â It also realises it must work closely with its community to resolve any problems. However, it is clear the situation in Kaipara is urgent and action is now needed.â&#x20AC;? â&#x20AC;&#x153;Under the current Local Government Act there are limited options for the Government to intervene to assist councils.Â A situation like this illustrates why the Government has embarked on its Better Local Government reform programme.â&#x20AC;? â&#x20AC;˘ Rates focus â&#x20AC;&#x201C; page 7

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Rural News // june 5, 2012

news 3 issue 516

www.ruralnews.co.nz

Maori big farmers pet er bu rke

News �� 1-29 World �� 30-32 Agribusiness �� 33-37 Hound, Edna �� 38 Contacts �� 39 Opinion �� 38-42 fieldays preview �� 43-61 Markets �� 62-63

MAORI FARMS are on average eight times the size of the average New Zealand farm, says Statistics New Zealand. This latest information comes from a survey of farms owned by members of the Federation of Maori Authorities (FOMA) and includes data on sheep and beef, dairying and forestry. It should be noted not all Maori farms are members of FOMA. The statistics show the average Maori farm is nearly 2000ha and the farms are mainly livestock properties.

On average Maori farms have eight times the number of sheep and ten times the number of beef cattle found on the average New Zealand farm. The FOMA research, done about a year ago, shows Maori farms have: 568,000 sheep (or 1.8% of the national flock); 79,000 beef cattle (2.1% of the national herd); 39,900 dairy cows (0.6% of the national herd); and 2.9% of all forestry. What the statistics don’t show is that Maori farms are, overall, dramatically increasing their production and have greatly improved the gover-

nance of their trusts and incorporations. The report says Maori farms are less intensively farmed and more likely to be sheep and beef or forestry operations. These statistics are part of a pilot programme between FOMA and

Management �� 64-69 Animal Health ��70-76 Machinery and Products �� 78-85 Rural Trader �� 86-87 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 80,879 as at 31.12.2011

Future Young Farmers: Kids from Fairfield Play & Learn were among the practical day crowd at Forsythe Barr Stadium at last week’s finals of the Young Farmer Of The Year in Dunedin. See page 6 for more on this year’s winner Michael Lilley.

Statistics New Zealand to better understand Maori business activity. This week in Auckland the winner of the Ahuwhenua Trophy for the top Maori dairy farm will be announced. See page 19

Limit on fund SUDESH KISSUN

CHANGES TO the Fonterra shareholders fund will be enshrined in the co-op’s constitution if approved on June 25. The special resolution, which needs a 75% vote, has three parts: decreasing the fund from 25% to 20% of total shares on issue, decreasing the threshold on the number of dry shares on issue from 25% to 15% of total shares; and capping the number of wet shares a farmer may sell the economic rights to in the fund. “It’s a combination of hard maths and good judgement that leads us to recommend 20%,” Fonterra chairman Henry van der Heyden says. The size of the shareholders fund, which will trade share units to investors, has divided shareholders. Some worry a bigger fund will allow more investors to buy units and exert influence over the co-op. Van der Heyden says the 20% threshold strikes the right balance between flexibility to manage seasonal milk fluctuations

and controls to manage risk. “While we intend to operate the fund at a size of 7-12% of total Fonterra shares on issue, we do need breathing room to take account of seasonal changes in milk volume,” he says. “Milk production is driven by weather; for example, this year we anticipated 3% milk growth but got 10%. Add 10% growth to our 7-12% fund size and a 15% cap is too restrictive.” Over time the fund will be managed within the target size range. Another key resolution up for a vote on June 25 is setting the farmgate milk price in the co-op constitution so that changes require a 75% majority. The council’s right to have two representatives on the milk price panel will also be enshrined in the constitution. “This underpins the integrity of the farmgate milk price going forward,” he says. Shareholders are concerned investors will be pushing for a higher dividend payout at the expense of the payout.

Not a good look PA M T I PA

MPI is not ruling out prosecution of 60 kiwifruit growers who injected vines with antibiotics in a bid to cure them of Psa. Communications manager Lesley Patston said late last week they were working with the industry to establish what exactly has happened. “We are too early in our investigations to make any sort of comment on prosecutions.” Both Zespri and MPI say there has so far been no market reaction. Meanwhile Zespri, which has been testing fruit for traces of the antibiotic streptomycin, says about 500,000 trays will be lost because of antibiotic contamination – about 0.5% of this year’s record crop of 116 million trays. It is understood many of the estimated 60 growers who injected vines told Zespri about it knowing their fruit would not be sold. NZ Kiwifruit Growers president Neil Trebilco says the intense media interest in antibiotics injected into kiwifruit by growers is not good for growers from a market point of view. From a grower perspective Trebilco says “they are over it”. The actions of a few were picked up earlier this year and a “comprehensive” approach was taken towards them by the industry. “Growers have enough to deal with with Psa rather than what the market reaction might be,” he says. More kiwifruit articles p5

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Rural News // june 5, 2012

4 news Front foot it! A N DR EW SWA L LOW

‘LICENSE TO operate: regulatory barrier or market opportunity?’ That was the title four guest speakers spoke to at Agmardt’s annual agribusiness breakfast, preceding the practical day of the Young Farmer Contest. Fish and Game chief executive Bryce Johnson said five years ago the topic would have been “heresy” in such a setting but now it’s time has come. “What agriculture needs to do is take the lead.... The trick is to stay ahead of the game. You’ve got to collaborate with the policy makers.” Revamping the Clean Streams Accord is “a huge opportunity” and as Land and Water Forum (LAWF) progress has shown, all New Zealanders want more or less the same outcomes. Bryce Johnson Environmental NGOs (which F&G is not), rather than being the enemy, are “really part of your strategic opportunity”. Johnson’s presentation followed Lincoln University vice chancellor Andy West’s, who gave a “big picture” personal view that world agriculture – New Zealand included – needs to intensify production, not just to feed the predicted 10 billion population of 2050, but to protect the environment. “What we’re doing right now is sending an awful lot of species extinct. We’ve got to intensify our use of land. The question is: does New Zealand want to be a part of that?” Intensification, for example through partially housed dairy systems, offers a win-win to increase production and reduce environmental impact, he said, declaring he has an interest in the Herd Home company. “We could double our [dairy] production just by feeding our cows properly.” That would be worth $7 billion at the farmgate, $13 billion ex factory. In sheep the potential is probably even greater, he added. However, compromises and strategic decisions at a national level need to be made. “How many water bodies should be pristine?... What we’ve got at the moment is an arms race going on between different communities about who can set the highest standards quickest.” Federated Farmers Dairy chair Willy Leferink acknowledged agriculture “has some issues to address, particularly when it comes to nutrient loading.” “The problem is the science is struggling to keep up with all the people who write policy.” Inappropriate policy risks forcing unnecessary development costs on the industry, he warned. He also had a dig at urban pollution, but noted in voting terms, New Zealand’s 30,000 farmers “don’t mean a thing” compared to the 2.9 million majority. “But at least this Government listens to us.”

TAF sceptics seek second opinion ANDREW SWALLOW

A GROUP of Fonterra shareholders has commissioned a report on hybrid cooperative models because they’re concerned they’re not getting the full story from their own board and management. “We have been forced to do this because, to date, we’ve not been allowed access to the official due diligence that we as farmers have all paid for,” group spokeswoman Leonie Guiney told Rural News last week. At their own expense Guiney and others commissioned Dutch co-operatives analyst Onno van Bekkum to look at the success or otherwise of cooperatives elsewhere in the world that have pursued models that involve nonfarmer equity in cooperatives. “Part of the problem is there’s nothing to compare TAF with. But it is imperative some expert analysis from a cooperative viewpoint is made available to farmers in the next few weeks as we consider what is a critical vote for the future of our cooperative.” She’s concerned Fonterra’s dossier of information, due to be mailed to shareholders late last week, including voting papers, will simply be too much for some to digest, and they’ll take the “trust the board” approach and just tick the boxes. “We must continue to test the concept against

Leonie Guiney

About van Bekkum ONNO VAN Bekkum describes himself as a cooperative strategist. He is MSc in agricultural economics from Wageningen University and PhD in economics from Nyenrode Business University, Holland. He has worked as a consultant for cooperatives including Rabobank, FrieslandCampina, Fonterra, Tine, and Dairy Farmers of Britain, among others. • See www.coopchampions.com

our cooperative principles and remember why we’ve not prioritised share value as our primary goal in the past. People must understand what they’re voting on.” She also believes the vote threshold should be 75%. “No board that prioritised the co-op would consider anything less to be a mandate.” She notes chief executive Theo Spierings recently said co-op unity is more important than TAF. “The only way to ensure

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that unity is for any resolution to require 75%.” Guiney is dismayed by what she believes is selective circulation of media commentary on TAF by Fonterra. For example, a recent Radio Live interview featuring Rod Oram repeating Fonterra chairman Henry van der Heyden’s line that there’s a vocal minority who don’t understand the TAF model was emailed to the entire supply base by Fonterra regional managers, yet interviews with Simon

Couper about his reasons for standing down from the Shareholders Council were not. “Couper was our elected representative who has seen the detail behind this and he’s stood down on principle because he doesn’t believe 100% ownership and control can be maintained. Yet they think Rod Oram’s comments are more important.” As for the “vocal minority” allegation, signatories to a petition calling for a second vote on TAF alone represented $630m worth of Fonterra shares – about 7% of supply, she points out. “The ones who signed are only the tip of the iceberg. Vocal minority? I don’t think so!” Fonterra told Rural News it is not being selective in what it circulates. The Oram interview was

sent by an area manager following farmer feedback expressing interest in independent reviews and comments on TAF. It is doing everything it can to ensure all the information is available to shareholders in time to be read, discussed and questioned, the co-op says. The pack posted to farmers contains a 23-page report which is the same as the board received except for a few minor edits and exclusion of the appendices for commercially sensitive reasons. In addition to next week’s 51 meetings, in the run-up to the June 25 special meeting and vote, farmers may call directors, shareholders’ councillors, networkers, area managers and members of the TAF project team. Questions posted on Fencepost will all answered and legally verified.

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Rural News // june 5, 2012

news 5

Kiwifruit growers plea for help pam tipa

“PLEASE HELP us” is the impassioned plea from Te Puke kiwifruit grower Rob Thode, who says growers feel abandoned. Many Psa-hit Te Puke growers are out of income, some have no money to dispose of their PSa-hit vines and they are grafting a new variety in this diseased environment with fears it too may succumb. Growers feel abandoned by the Government which meanwhile is paying at least $100 million to clean up after the sinking of the Rena – a foreignowned ship

Many kiwifruit growers feel abandoned as Psa has left them without any income.

Against that background Thode, who last June cut out his owned Psa-hit gold crop, says he understands why growers injected their vines with

streptomycin – an act of desperation. “The thing that really bugs me is we have a disaster and the Government hasn’t even declared it a

Warning signs clear RED FLAGS “should have been going up all over the place” when the kiwifruit vine disease Psa first emerged in Italy, says a top Otago scientist who has linked the New Zealand and Italian outbreaks with China. Professor Russell Poulter is 99% sure Psa-V came into the country in pollen, though MPI has so far only acknowledged it as a possible pathway. Poulter is among a group of Otago biochemists who have genome sequenced New Zealand and Italian Psa and discovered a definite link to China. He cannot absolutely prove Psa came into this country with pollen from China, he says, adding that in science it is rare you can prove anything beyond doubt. But he is 99% sure. “There is no way to provide an absolute guarantee of sterility of the pollen you import,” Poulter says. “At the time we were importing it we had no checks at all and you could say that was a bit slack of MAF.

“But we are not allowed by international agreements to just impose random non-tariff barriers to trade. You have to produce scientific evidence that there actually is a problem.” But with the benefit of hindsight, Poulter says once Italy had a major Psa outbreak “this should have caused red flags to go up all over the place”. “It’s like foot and mouth: all you need is one sick cow and it’s like an avalanche,” he says. Australians blocked all imports because “with a major pandemic blazing away all over the place, it is silly to let it in”. Poulter’s team has established the original source of Psa-V was China, but it is now sequencing the genome of the Chilean strain. “The question we would like to answer is whether the pollen came direct from China or whether it was via somewhere else, and the only likely area is Chile.” – Pam Tipa

disaster,” he says. Some growers have no crop this year so can’t pay their mortgages; many others will have no crop next year. “You have 2000ha in the Bay of Plenty going out of production. We have a massive disaster on our hands and the Government is providing no relief and is not acknowledging its part in a biosecurity failure that has had horrendous consequences.” Thode believes action should have been taken in 2008 when Psa “went charging” through the Italian orchards and we were importing pollen from China. Growers were now carrying the cost of Psa and the burden on their own. “It is tremendously un-New Zealand. You imagine a drought or a flood in which people are

‘Total madness’ GROWER ROB Thode says it is “total madness” that there is only one Gold cultivar (G3) being offered as an alternative to Hort 16A which has been decimated by Psa. “We haven’t got biodiversity and we are leaving ourselves open to another disease hit which could be just as severe as we have just had.” Thode says people overseas can grow what they like because they are

just left to themselves. That’s never happened in the history of New Zealand. The Government hasn’t done anything since the initial response. And that was appallingly handled; they just did testing and the disease was allowed to run rampant.” Thode says although he cut out his Psa vines, many others have not. He has lost a third of his Hayward (green) crop this year to

not restricted to growing Zespri varieties. (Zespri is the only New Zealand body licensed to export kiwifruit beyond Australia) “Going forward we desperately need about 10 cultivars and we need freedom,” says Thode. He knows of a New Zealander in Chile who is planting 1000ha with different varieties which is “really bad news for New Zealand exporters”.

Psa at a cost of $300,000, even though this variety is seen as Psa-resistant. He believes this is because of the disease-ridden environment in Te Puke. Last week was the deadline for growers to apply to graft for this winter the new Gold variety G3, which Zespri hopes will provide a recovery pathway. Fears have already been raised it too may be succumbing to Psa.

Thode says growers need to know if the Government will provide any assistance when they made that decision to buy G3 or not. He says growers need money for clean up alone. “How are some of the growers who have got no money whatsoever going to clean out their Hort16A? It is urgent to get rid of this disease-ridden cultivar or we haven’t got a chance of going forward.”

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Rural News // june 5, 2012

6 news

Clear winner in Young Farmer contest andr ew swallow

SOME YEARS the National Bank Young Farmer Contest Grand Final goes down to the wire, others the winner comes in with a comfortable margin. This year it was the latter, not that the contestants or audience

know that until the final couple of rounds of the televised evening quiz, because scores from preceding challenges are only revealed during the course of the show. “I thought I’d be chasing Pete [Gardyne] but it ended up he was chasing me,” winner Michael Lilley told Rural News.

Dream challenge: Young Farmer contest winner and vet Michael Lilley fits a hoof.

The 26-year-old vet from Murchison landed the title in Dunedin on May 26, finishing with 342 points from a potential 500 after three days of gruelling competition. Southlander Gardyne came in second on 313 and Brad Lewis, representing Taranaki/Manawatu, third on 278.

Lilley got off to a good start, acing the market innovation challenge with 70 out of 70 for a pre-contest prepared proposal to micro-malt barley from his parents’ farm at Methven, Canterbury, and market the product in home-

“The full-on-ness of it. You don’t get a lot of sleep.” He’d been there before though, in 2009, when, by his own admission he came “dead last, by quite a bit”. His mind was made up

Lilley says the toughest thing about the contest is the overall intensity. “The full-on-ness of it. You don’t get a lot of sleep.” brew kits in the US. He also topped the table in the other element of the agribusiness challenge – strategic business development. Gardyne pipped him in the agriskills (practical) challenges, with 102 from a possible 140, and agrisports, but as it turned out, it wasn’t enough to give him a lead going into the final night: Lilley was ahead on 302 points to Gardyne’s 295, not that either knew that. Lilley says the toughest thing about the contest is the overall intensity.

to have another crack soon after that. Being “pushed hard” by Reuben Carter in the Tasman regional final this year helped his preparation, as did wife Kelly, keeping him organised leading up to the Dunedin showdown. With the win under his belt, his short to mediumterm plans are to build the veterinary practice business at Murchison, which he’ll shortly become a partner of, buy some land to farm “further down the track,” and family: Kelly’s expecting their first child in July.

Farmers not all to blame P ET ER BUR K E

FARMERS, CONTRARY to popular myth, do not with ‘gay abandon’ pollute the environment, says Federated Farmers president Bruce Wills. Speaking at an agriculture conference in Wellington, Wills acknowledged farmers do influence the environment because that’s where they “run their business”. But urban people also greatly influence the environment, he says. “It’s far more visual when you see a cow doing its thing in a river as was shown on television recently. Compare this with a boring old concrete pipe coming out of an oxidation pond near an urban centre and flowing into a river: it’s not nearly so dramatic.” The Land and Water Forum has brought acceptance that the environment is everyone’s problem and responsibility, Will says. The view is that no one particular group is more to blame than another. Now that message has to get to the wider community. Wills says agriculture is under more environmental scrutiny than ever and it’s clear some farmers need to lift their game, but most do a good job and care about the environment. Wills spends half his time as Feds president dealing with environmental issues. He raised concern at the growth in the number of lifestyle blocks around provincial cities and towns. In 20-30 years land equivalent to half that now in dairying has been lost to lifestyle blocks, much of it ‘class one’ quality. If this trend continues it will have implications for farming and farm production. Much of this growth has been due to “lazy urban planning,” Wills says.

Rural News // june 5, 2012

news 7 Farmers targeted

Rate rises starting to grate pam ti pa

AVERAGE SPENDING increases by New Zealand councils are a moderate 3.1% next year – but it’s the forecast 45.5% increase over the next decade that worries Federated Farmers. Local government spokesman David Rose says while there are a few “shocking” increases proposed by some councils this year, most are keeping a lid on spending right now. But Federated Farmers had submitted on 70 of 78 long-term plans around the country. “Debt is going to increase by 98% over the decade: the sector will go from $9.4 billion to $18.4 billion. Most of it’s due to the Auckland Council where debt is planned to increase by 175% to get to $12.5 billion. “Although councils are reining things in at present, it does not appear to be a long-term trend so we’re right behind the Government reforms to

David Rose says most councils are “keeping a lid on spending right now”.

ensure efficiency and prudence. This will pinpoint essential services and funding policy should be part of the reforms. “Rates are based on property value which doesn’t necessarily relate to use of services.” Rose says he agrees with Prime Minister John Key’s recent comments that local government cannot have a bottomless pit of debt. Key has said if the last decade’s rates increases had been the same as the previous decade’s, each rate bill in New Zealand would be lower by $500 per annum, or $1 billion in total. “That’s why the focus on what councils do is really important. With

Waimate farmers to fight rate hike A PROPOSAL to apply a ‘civic amenities’ rate to every house on a property, rather than per property, in Waimate District, South Canterbury, is being opposed by farmers’ representatives. “Waimate District Council’s new funding policy will result in extortionate rural rates increases for the 2012-13 year which will see some farmers pay out nearly $5000 more on rates than they did last year,” says the local Feds branch chair, Colin Hurst. “One farmer’s rates are

increasing 37% from just over $13,000 to around $18,000. I have not fared as badly, but still have seen my rates increase by 10%. These are very unfair rates hikes targeting people who already have low levels of service.” Hurst says it’s disappointing the council failed to consult Feds during the policy review and labels the increases “opportunistic” given central government’s moves to crack down on council spending and debt levels.

the right to do ‘social spending’ you can come up with almost anything… you can build a stadium and let your roads run down,” says Rose. The Kaipara District Council was one Rose cited as having a “shocking” increase. It has proposed a 31% increase across rural and urban, but is reassessing rates after protests by residents. Rose also says Environment Southland plans to employ 17 more people this year.

DAIRY AND forestry ratepayers in the Far North are being singled out for a major rates hike because the local council says their trucks and tankers damage the roads more than ordinary traffic. The Far North District Council plans a differential rate based on how much each of nine industry sectors is deemed to damage the roads. Forestry (differential of 16) is the hardest hit percentage wise, but the organiser of a protest meeting in Northland last week, 447ha dairy farmer Murray Jamieson, says dairy farming (2.8 differential), which is singled out from other types of farming, is the biggest hit dollarwise because it was already paying a lot. His rates will jump 110% from $23,000 to $40,000 if the rate change is approved by the council at the end of June. Federated Farmers local government spokesman David Rose told Rural News the only way to fairly attribute maintenance costs for roads is by road user charges. A worrying trend has developed of differential rating decisions around the country being based on political decisions rather than data and common sense, Rose says. Farms get hit because of their high capital value. Far North communications manager Richard Edmondson says the council based its proposed differentials on a report by infrastructure consultant Mor-

rison Low which researched the impacts different users had on roads. Far North is not the first council to propose targeted roading rates, he says. The Southland District Council, which also used Morrison Low, levies these and has set the differential for the forestry sector at 19 and for the mining sector 54. Rural News was unable to confirm what the differential is for dairying, but the Southland District Council’s long term plan shows it proposes dairying pays for 34% of its roading costs in 2012/13, equating to about $3.9m. Meanwhile Edmondson says the council wants to shift the road burden from the residential sector to the sectors that incur the costs. The council collects about $500,000 a year from the forestry sector in rates but spends about $2.5m fixing roads damaged by logging trucks. Over the next 10 years, 51% of its capital spending ($365 million) will be on roads. “It’s one of number of proposals we are introducing to make the roading system fairer and, in a nutshell, we are trying to introduce a higher degree of user-pays,” says Edmondson. “The targeted roading rate will result in higher costs for dairying and those industries associated with heavy vehicle movements.” – Pam Tipa

Too easy RATES ARE climbing: every year the council needs more money to retains its infrastructure, says Federated Farmer’s Gisborne/Wairoa chair Hamish Cave. “And we have a low socio-economic base in Gisborne. A lot of people rent houses. So putting up rates for farmers is just an easy way of collecting more money off the landowners. “The country is subsidising the town – that’s what I hear consistently from farmers: ‘We pay huge rates and we receive no benefit other than a road to our front gate. “Roading is a big cost, we are subsidising waste water in Gisborne, also an Olympic pool, rubbish collection, the district library and so it goes on. Very few rural ratepayers utilise those services.”

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8 news

Biosecurity impasse increases risks SU D ES H K I SSU N

NEGOTIATIONS ON the Government’s biosecurity response agreement is far from over, says Horticulture New Zealand president Andrew Fenton. Fenton says a lot of work is going on behind closed doors on the government industry agreements (GIAs). “It’s a work in progress,” he told Rural News. His comments follow a warning that the delay in concluding the GIAs is expanding gaps for biosecurity breaches. The KPMG Agribusiness Agenda, released last week, says some sectors remain sceptical about GIA. KPMG head of agribusiness Ian Proudfoot says the Government and some agriculture sectors have “diametrically

opposed views” on how GIAs should work. The impasse must end, he says. “While debate continues gaps are expanding for biosecurity breaches.” However, Federated Farmers biosecurity spokesman Dr William Rolleston disagrees. “Although it’s good to get things done quickly, we must have a high quality agreement. We don’t see any evidence of MPI degrading biosecurity management as we go on quietly with the negotiations.” KPMG interviewed 98 agribusiness leaders for the report and biosecurity is their top priority. Maintaining a world class biosecurity system to protect New Zealand’s economic interests was rated as 9 or 10 priority by 83 % of respondents to the survey. But there still remains a wide range of opinions over the GIAs. The view of

sectors towards GIA structures have not changed much during the year, it says. “Some sectors see a GIA as an opportunity to gain greater control over their own destiny, while others view the reforms as little more than an attempt to reduce government biosecurity funding, and pass the cost of protecting New Zealand’s economic future back to the industry. “The response to the Psa incursion has demonstrated the benefits of a coordinated industry, grower and government approach – but it remains to be seen whether other sectors would achieve the same.” Questions remain on whether enough is being done to sufficiently protect the border. This was best highlighted by the importation of strawberry planting kits from China with

relative ease, with no questions being raised by Biosecurity NZ. Fenton agrees the ideal outcome will be to have GIAs on border security and response to incursions. “But we have to agree first on who will manage the response and make the decisions and most importantly, who will pay. I believe we have a long way ahead before there is an outcome.” The KPMG report calls on the Government to provide clear assurance on biosecurity funding. Ian Proudfoot KPMG. “It’s widely accepted that intelong-term plan to reduce its financial grated management of commitment to protecting New Zeabiosecurity threats makes sense for land’s borders – and it has not yet catthe industry. The Government needs egorically provided this.” to provide clear assurance it has no

Consumer remains the king P E TE R BU RK E

THE CONSUMER is the ultimate ‘regulator’, says Sliver Fern Farms (SFF) chief executive Keith Cooper. He told an agricultural conference in Wellington last week that while governments and their institutions in overseas markets determine the right of access, it’s the consumer who has the final say. “You can have all the certification in the world, but if the consumer doesn’t like your products or your brand values or what you stand for or how you produce your product, they can turn their backs on you and effectively become the regulator. “It’s a bit like that pink slime case in the US when celebrity chef Jamie Oliver took to it. He destroyed a business overnight by saying this stuff is rubbish.” Cooper says branding is important and that SFF has done this effectively on domestic and international markets. But there is often confusion over what a brand actually is, he says. If you put a logo on a meat pack all you’ve got is a logo and that’s not branding. “Branding is when you’ve got a ‘suite’ of underpinning components, behaviours, cultures, and confidence. It’s all the other things that support a brand. A brand is nothing more than a logo if it hasn’t got all the other supporting functionalities.”

Consumers want to know what’s behind the brand and whether a company has been a ‘good custodian’ of the product, Cooper says. This includes how the animals are farmed and cared for and the environment in which they live. Research by SFF is gaining feedback on such matters. “Take the supermarket chain Tesco as an example. Their customers trust Tesco has put their suppliers through the hoops so we don’t have to put stickers all over our meat products to say ‘we’re approved here’. The consumers know Tesco Keith Cooper says consumers want makes sure everything is nice.” Cooper says when marketing to know what is behind a brand. overseas it’s critical a company fully understands the subtlety of different cultures. Get- those types of plates, so we had to quickly make some ting even the most minute detail right can make the changes.” Cooper says he’s happy with the progress they are difference between success and failure in a promomaking with their branded products, but it’s an ongotional campaign. “We were planning a campaign in Greece and we ing learning process. They are careful not to make sent over what seemed to us beautiful pictures of too many big promises to consumers until they fully lamb on a plate. But the Greek people quickly told us understand the markets and exactly what makes conGreeks never eat meat that colour and they don’t use sumers tick.

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A real no-no! HORT NZ does not condone use of antibiotics in Psa-ravaged vineyards, says president Andrew Fenton. ‘It’s a total ‘no-no’ for the industry.... It’s illegal and we don’t support it,” Fenton told Rural News. On whether MPI should prosecute growers alleged to have used the antibiotics, Fenton says it’s up to the Government. But he says MPI should take into consideration that these farmers “have taken a hiding” from Psa. “A lot of individuals are under huge pressure; their crops have been wasted.” Meanwhile MPI says no fruit contaminated with antibiotics had reached the marketplace. The ministry and Zespri had tested all the orchards and no contamination was found outside the 60 orchardists who had owned up misusing antibiotics.

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Washing down or cleaning (nozzle not included)

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Rural News // june 5, 2012

10 news

Still a golden hue for kiwifruit pam ti pa

KIWIFRUIT GROWERS still growing Zespri Gold will get a significant boost next season. Due to lower volumes Zespri is forecasting a pertray return to Gold growers of $13.70-$14.20 in the 2012/13 season, up from

$11.91 this season. Forecasts for Zespri Green at $6.80-$7.30 and Organic green ($8.45$8.95) are similar rates to this season. Kiwifruit Vine Health’s latest results show 37% of New Zealand’s kiwifruit orchards, representing 46% or hectarage, mostly

in the Bay of Plenty area, are now infected with Psa. Zespri Gold or Hort 16 is the worst hit by Psa. However some orchards in the Bay of Plenty are still growing Gold and other kiwifruit areas such as Nelson and Kerikeri are disease-free. Zespri’s 2011/12 finan-

cial results show a lift in global revenue of 7% to $1.62 billion, on the back of a record volume crop of 116.5 million trays of kiwifruit. The record crop volume increased total returns to growers in 2011/12 by 11% to $980.4 million, the average

orchard gate return for growers increasing by 8.1% to $45,206 per ha. Zespri chairman John Loughlin says global economic uncertainty, rising costs and a volatile dollar are causing headwinds for Zespri. Gold volumes were expected to drop from this

year’s record 29 million trays to 20 million trays this year. “Zespri has positioned itself for these lower volumes in 2012/13, through a reduction of $10 million (14.4%) in corporate costs,” says Loughlin. “We expect Psa to further impact on Gold volumes in 2013/14. However, in 2014/15 we expect to see Gold volumes recover, as the Psa-recovery path-

way centered around the Zespri variety Gold3 begins to take effect.” Loughlin says a real challenge for the industry in coming years is moving from declining volumes due to Psa, to rapidly growing volumes in a short space of time, should the recovery pathway prove successful. Zespri’s net profit for 2011/12 was $20.5 million, compared to $7.3 million in 2010/11.

Richard Burke, general manager Leaderbrand.

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Leaderbrand aptly named LOOK AT fruit and veges in any New Zealand supermarket and chances are you’ll see the name Leaderbrand. It’s a major horticultural exporter and supplier to the domestic market, and it’s based in Gisborne. General manager Richard Burke runs a modest office on one of the company’s farms just out of Gisborne. He started 20 years ago as a spray operator with Leaderbrand; now at age 41 he heads an organisation permanently employing 240 – twice that at peak season. Local farmer Murray McPhail founded Leaderbrand and has grown it to one of the biggest such firms in New Zealand. His strength is he’s a good farmer who can manage the marketing of products and attract people with the right skills, Burke says. Leaderbrand is big in exporting squash to Korea and Japan, and pouched or single-packed corn (hand-picked) to Japan. Leaderbrand has a strong hold on the domestic market. “We do business with both the major supermarket chains and have a sales team in Auckland,” Burke says. “We sell broccoli and lettuce year round to them and have a salad processing facility where we produce coleslaw and other salads. We are the biggest supplier of sweetcorn and we sell watermelons. We also [sell to] restaurants and institutions.” Leaderbrand supplies tomatoes and corn to food processors and, from 150ha of vineyards, supplies grapes to local wineries. The firm’s profile outside Gisborne may be low, but it contributes hugely to the economy of the East Coast and to all New Zealand.

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Rural News // june 5, 2012

TAF too risky – Couper SU D ES H K I SSU N

FORMER FONTERRA Shareholders Council chairman Simon Couper will not be campaigning for a vote against TAF (trading among farmers). But he wants co-op shareholders to realise TAF “will put us on a path that has the potential to become a slippery slope”. Couper, who quit the council last month, is uncomfortable with 100% farmer control-and-own-

tion is not put under risk. With a big fund, investors will want more and more returns and I’m not happy and comfortable with that.” Couper says Fonterra is a great co-op owned and run by farmers and it’s up to shareholders to decide the fate of TAF. “Farmers should study TAF documents sent to them and decide whether they are happy and comfortable with it. “I’ve always held to my

“When you’re bringing in competing interests, you need to make sure an organisation is not put under risk.” – Simon Couper olds, appropriate action is taken to protect the

co-op. The final form of this policy gives the coun-

cil a pivotal role in ensuring that the size of the fund is closely monitored and appropriate action taken at the various thresholds.” Fonterra chairman Henry van der Heyden says it’s important the board and council are able to stand shoulder to

shoulder on TAF. “When we announced the special meeting we said we wanted to have this final vote to unify the cooperative. With board and council unified on TAF we are now a long way down that track.” Van der Heyden says the board regrets Couper’s

news 13 decision to stand down. “But if Simon is uncomfortable, he has done the right thing by the cooperative.” Couper, who served on the council for eight years, farms at Waipu, Northland. His resignation has left a vacancy in the southern Northland ward.

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No longer friends; Fonterra chairman Henry van der Heyden, chief executive Theo Spierings and former Shareholders Council chairman Simon Couper at a management retreat in Waikato last month.

integrity. I accept that a majority of council may be happy with the proposed model but I couldn’t lead an organisation where I had such a big fundamental difference on such a big issue.” Rural News understands about 80% of the 35-member council support TAF. New council chairman Ian Brown supports TAF. Brown admits the fund size has been an important issue in deliberations with farmers over the past two years. “As a result of these discussions considerable emphasis has been placed on the terms of the Fonterra shareholders’ fund risk management policy which is described in the TAF blueprint, he says. “The board and the council have been intent on ensuring that should the size of the fund move through various thresh-

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ership provisions in TAF but wants shareholders to make their own decision. Voting papers for the June 25 vote were sent last week to shareholders. TAF theoretically provides a unique opportunity for our co-op but must have complete safeguards on ownership and control, he says. “And I don’t believe TAF delivers 100% ownership and control under its present structure,” he told Rural News. Couper is unhappy with the size of the Fonterra Shareholders Fund, which will sell share units to outside investors. Fonterra’s board has agreed to reduce the fund ceiling, kept at 25% under the original proposal. But Couper doesn’t believe the changes go far enough. “When you’re bringing in competing interests, you need to make sure an organisa-

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Rural News // june 5, 2012

14 news

Deer industry gets in behind The Deer Industry Conference last month at Wanaka featured entertaining guest speakers and enlightening panel debates. But the big-ticket item was the industry’s productivity improvement plan. Andrew Swallow reports. DEER FARMERS, or at least those at last month’s Deer Industry Conference at Wanaka, appear to have

given their unanimous support to an ambitious productivity plan. Most – possibly all – arms went

aloft when the call came for support and while it was hard to tell if there were any abstentions, no

hands were raised against. If the sector can achieve the figures its productivity leadership group

calculates are possible, “the prize” for farmers would be at least a doubling of earnings per kg of venison produced. “We need your agreement that you’re up for the challenge to make an extra $2.48/kg of venison,” Deer Industry New Zealand chairman Andy Macfar-

Andy Jarden

James Palmer

lane told the conference. “You, as individuals, need to take personal responsibility to participate... We, through the leadership group, will work on empowering the scientists to keep the options pipeline full so we don’t run out of ideas. Just as importantly, we’ve got to work out how to implement those on farm.” Costings for the necessary science and extension – and how to fund that – are still to be worked out, but Macfarlane said he expected it would be beyond DINZ’s current income streams so an application to MPI for help in funding the plan is likely. During the conference, delegates were asked to complete a four-question form to help the productivity leadership group (PLG) fine-tune the plan. “There were some very, very good recommendations which we as a group would like to pick up on,” PLG chair Mandy Bell told a later session at the conference. The group summarised

responses for delegates, which were then debated. Clive Jermy, Darfield, welcomed the plan as a “fantastic opportunity” but said the carcase weight model was flawed because of the acceptance of an 11kg increase in hind weight over 20 years and that the 10-year potential mean carcase weight of 64.3kg was too conservative. Jermy also urged the group to trawl research archives for answers before commissioning new work, suggested DINZ’s $4.1m of reserves be raided, and he questioned how findings would be disseminated. “No research programme should be entered into for the benefit of a few producers. Levy funds are paid by all for the benefit of all.” DINZ chairman Andy Macfarlane said the group was still finalising the productivity goals and how to reach them. With that nailed down, the plan would be costed and funding sought. “It’s a process we’ll go through in the

MPI man says plan ticks boxes MPI DIRECTOR strategic systems and science policy, James Palmer, told delegates the deer industry “ticks all the boxes” in being market-led in extension and technology adoption. However, if the sector is to get a slice of Primary Growth Partnership funds to help deploy its plans, it needs to hurry, he hinted. “We’re starting to get to the end of what we’ve got. $477m has already been allocated. There’s only $70m unallocated for the next four-five years.” A key challenge in designing sector reform, such as the productivity improvement plan, is ensuring everybody moves up together. “So the top don’t streak ahead and everyone else is left behind.” In sheep and beef “the tail of underperformance has just got longer.” Palmer says New Zealand as a whole needs to work on capturing more value for its produce. Our $25 billion or so of primary exports are transformed into an estimated $140-200bn down the value chain. However, he implied the deer sector does better than most. “The good work you do in market now just needs more supply.”

Rural News // june 5, 2012

productivity plan Table 1: Deer industry productivity today and potential

Time period

Today

Survival to slaughter

+10 years

+20 years

72%

80%

87%

Carcase weight

55.4kg

64.3kg

77kg

Mean kill weight

Feb 1

-16 days

-33 days

Hind liveweight

110kg

115kg

119kg

58:1

54:1

50:1

Kg output/hind lwt (hind efficiency)

0-36

0.44

0.54

Income/kg output

$8.7

$8.83

$9.14

$2.34

$3.82

$4.82

Feed conversion Kg output/hind

EBIT/kg output

next few months.” Drawing on DINZ’s reserves would be considered, as would partnering with industry and Government. As for the recipients of work, Macfarlane reassured delegates “we don’t want to spread the gap between the top and the bottom [producers]. We want to narrow that.” Andy Jarden, Wan-

ganui, questioned the focus on earlier, 10-month finishing, given the processing efficiency gains of heavier carcases. “Why not aim for 90kg at 22 months?” He too questioned the plan’s acceptance that hind weights would have to rise, and suggested twinning as a means to raise fawning.

POLARIS VARIABLE TRANSMISSION

Table 2: 20-year EBIT gain breakdown

Processing efficiency

33c/kg

Hind efficiency

64c/kg

Reduced hind waste

28c/kg

Survival to slaughter

72c/kg

Earlier kill date

12c/kg

Carcase yield

28c/kg

Velvet, feed, use, other Total EBIT gain

11c/kg $2.48/kg venison sold

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news 15 All market to date WHILE VENISON producers’ average return, as measured by earnings before interest and tax per kg of product, has risen spectacularly over the past decade from 33c/kg in 2002 to $2.34/ kg this year, productivity has been flat. Fawn survival to sale is static at 72% and increased carcase weight (53kg to 55.4kg) and a six-day earlier mean kill are offset by higher hind weights (up 5kg to 110kg) leaving production efficiency unchanged at David Carter 0.362kg of venison produced per kg of breeding hind carried. “Our relative efficiency is exactly the same as it was a decade ago. We could argue that as an industry we’re leaving money on the table,” Macfarlane told delegates. Market gains have saved the day, producing the growth in EBIT that has kept farmers in deer, albeit fewer of them. Over the next 10-20 years the industry could not rely on such gains continuing, hence the need for productivity improvements to keep it competitive with other land uses. If the potential output gains the

DISC BRAKES FRONT AND REAR

productivity group has identified are achieved, then at an EBIT of $4.81/ kg venison, deer will be “very hard to touch on the class of country we want to farm on,” says Macfarlane. Minister for Primary Industries David Carter’s conference opening address endorsed the deer industry’s productivity plans. “[The deer industry] has been an absolute standout in the way it’s focussed on the value chain. You must now focus on driving those productivity improvements.” If it did that, it would be “a role model other sectors – certainly those in the red meat sector – can learn from.” The Government is there to support it in four areas: market access, notably into Asia and China; with responsible water and environmental policies that also “unlock productivity”; funding initiatives which stimulate growth; and world class biosecurity. “Our biosecurity is world class. We’ve kept free of major pest and disease incursions despite the ever increasing numbers of people and cargo from around the globe.”

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Rural News // june 5, 2012

16 news

Feds’ boss off Rome(ing) for support P E TE R BU RK E

FEDERATED FARMERS president Bruce Wills is off to Rome this week for the inaugural meeting of the World Farmers Organisation (WFO). The new organisation has formed following the collapse two years ago of a similar farming

group – the International Federation of Agricultural Producers (IFAP). A payment from the Ministry of Foreign Affairs and Trade (MFAT) is helping the Feds to attend the first WFO general assembly lasting three days. MFAT considers the federation can help support New Zealand’s

international trade negotiations, Wills says. Feds is working with its Australian and South American counterparts, also attending. “We felt that at some of the United Nations meetings that farming interests were not represented. We’ve been watching the formation of WFO and

have noted a lot of countries, including some in Europe and Asia, have signed up who have strong protectionist trade policies. “We have put together a paper on the importance of free trade and I hope to get a chance to speak to this paper.” Wills says he can speak

with credibility on the free trade issue and the fact New Zealand has a nonsubsidised agricultural system. While Wills acknowledges the WFO is quite a disparate group, he believes they have some issues in common including animal welfare, climate change and

FARMER MEETINGS Trading Among Farmers Update 7 - 13 June 2012 In early June, Fonterra is holding 51 meetings around the country for the Co-operative’s shareholders. The meetings will provide an update on Trading Among Farmers ahead of the June 25 Special Meeting, as well as end of season information. The meetings are open to all Fonterra farmers and plenty of time is being set aside for discussion. So if that’s you, check out the schedule below to find out where meetings are being held in your area and come along with the questions you need answered. Location Date Northland Kaitaia Thursday 7 June Wellsford Thursday 7 June Kaikohe Thursday 7 June Helensville Thursday 7 June Dargaville Monday 11 June Whangarei Monday 11 June South Auckland/Hauraki & Coromandel Auckland Thursday 7 June Pukekohe Friday 8 June Gordonton Friday 8 June Morrinsville Monday 11 June Ngatea Monday 11 June Waihi Monday 11 June Waikato / King Country Te Pahu Thursday 7 June Cambridge Thursday 7 June Matamata Thursday 7 June Putaruru Friday 8 June Te Awamutu Monday 11 June Waihou/Te Aroha Monday 11 June Otorohanga Friday 8 June Owhango Friday 8 June Bay of Plenty / Central Plateau Te Puke Thursday 7 June Edgecumbe Thursday 7 June Tirohanga Thursday 7 June Reporoa Thursday 7 June Rotorua Friday 8 June Taranaki Rahotu Thursday 7 June New Plymouth Thursday 7 June Hawera Friday 8 June Kapuni Monday 11 June Stratford Monday 11 June Lower North Island Napier Monday 11 June Dannevirke Monday 11 June Featherston Tuesday 12 June Pahiatua Tuesday 12 June Levin Wednesday 13 June Palmerston North Wednesday 13 June Top of the South / Canterbury Takaka Thursday 7 June Havelock Thursday 7 June Kaikoura Friday 8 June Culverden Monday 11 June Methven Monday 11 June Christchurch Monday 11 June Geraldine Monday 11 June Ashburton Tuesday 12 June Waimate Tuesday 12 June Oamaru Tuesday 12 June Otago / Southland Mosgiel Tuesday 12 June Balclutha Tuesday 12 June Gore Tuesday 12 June Lumsden Wednesday 13 June Invercargill Wednesday 13 June Light refreshments will be served at all meetings

time

Venue

9.30am 11.00am 1.30pm 3.00pm 10.00am 1.30pm

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

7.00pm 11.00am 3.00pm 11.00am 3.00pm 7.00pm

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

11.00am 3.00pm 7.00pm 11.00am 7.00pm 3.00pm 10.00am 3.00pm

Te Pahu Hall, Te Pahu Road, Te Pahu The Riverside Motor Lodge, 7 Williamson Street, Cambridge Daltons Plantation, 280 Hinuera Road West, Matamata Putaruru Kindergarten Conference Centre, 6 Glenshea St, Putaruru Te Awamutu Sports Club, 420 Albert Park Drive, Te Awamutu Barkers Function Centre, 12 Ngutumanga Road, Te Aroha Otorohanga Sports Club, Orahiri Terrace, Island Reserve, Otorohanga Owhango Hotel, State Highway 4, Owhango

10.00am 11.00am 3.00pm 7.00pm 3.00pm

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Bruce Wills says it is important New Zealand is represented at the WFO to ensure free trade and unsubsidised agricultural are kept to the forefront of the agenda.

environmental matters. The purpose of WFO is similar to that of the IFAP – advocacy for farmers worldwide, especially in some big international forums such as the UN. WFO’s objectives include looking after the interests of farmers and their families. Bruce Wills says it’s

important New Zealand is represented on this international lobby group to ensure free trade and unsubsidised agricultural issues are kept to the forefront. He says New Zealand has to be strategic in its approach, hence the special relationship with Australia in particular on the WFO.

New LIC directors elected TWO FARMERS with wide business experience have won seats on the LIC board. David Jenson and Gray Baldwin beat seven other candidates to the seats. The election attracted high voter turnout: 25% of eligible shareholders voted whereas previous turnout has been about 10%. David Jensen and his family in Tauranga milk 700 KiwiCross cows and farm 16ha of kiwifruit and avocados. Jensen is a director of Farmlands Trading Society and Satara Ltd. He is B.AgSc. Massey University and worked as a New Zealand Dairy Board consulting officer in Morrinsville and Canterbury. He has been an LIC councillor and regional director of BoP, past New Zealand Dairy Group councillor and a breeder of LIC bulls. His Puketiro Frostman was a member of the Friesian Premier Sires team for three years. He participated in the Fonterra governance development programme. Baldwin and his wife Marilyn farm 410 cows at Putaruru with sharemilkers. They won the Ballance Farm Environment Supreme Award in 2009. Baldwin is a director of Ballance Agri-Nutrients Ltd and Trinity Lands Ltd and chairman of Regen Ltd, a Wellington effluent technology company. Baldwin was marketing manager BNZ Agribusiness 1995-2000 and general manager marketing and distribution Ballance Agri-Nutrients 2000-2007. In his present role he works with 16 sharemilkers as supervisor of Carter Holt Harvey farms, Tokoroa. He is M.AgrSc (Hons) and has completed the certificate in company direction with the Institute of Directors and the Fonterra governance programme. Both appointments took effect on June 1.

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Rural News // june 5, 2012

news 19

Agribusiness giant is awakening PA M T IPA

MAORI AGRIBUSINESS is an awakening giant entering a new, confident phase, says the Maori Trustee, Jamie Tuuta. Maori agribusiness enterprises provide 8-10% of the national milk solids production and carry 10-15% of national sheep and beef stock units, Tuuta says. “One reason for resurgence is a determination to move from passive asset holders to more active managers of their land and assets,” he told the DairyNZ Farmers Forum. “A number of large scale entities in the Maori agri sector are becoming increasing market facing and value chain oriented, looking beyond the farm gate.” A recent example is the Maori majority owned milk processing company Miraka near Taupo. Tuuta says a 2011 Berl study showed the Maori economy was worth $36.9 billion per annum. Maori had $10.6 billion in assets, with only 10% of that from tribal treaty settlements. Forestry, fishing and farming accounted for almost a third of the Maori economy figure. Maori control 37% of the total fish quota and 36% of forests. Tuuta says Maori business had a long-term intergenerational outlook.

“Most Maori entities do not farm for capital gain but for cashflow returns. Maori entities will strive to increase productivity and cash yield while being environmentally sustainable and socially responsible with intergenerational accountability.” Tuuta says a 2011 MAF report showed Maori freehold land totalled 1.5m ha with 20% well developed, 40% under-performing and 40% under-utilised. The majority is rolling/ steep hill country with the balance more versatile. Of this land 580,000ha has no form of governance or management structure. “That is certainly something we need to change,” he says. In general the productivity of Maori agricultural holdings was 60-70% of the national average. Herein lies opportunity, he says, and strategic investment will improve productivity, unlock the Maori land base and provide employment. Tuuta was appointed Maori trustee nine months ago and his organisation administers 100,000ha of Maori freehold land and holds $72m of client funds with equity worth $125m. “Over the past nine months I have developed a new strategy to mobilise Maori land and create a legacy that delivers benefit to our owners, grow-

Fonterra’s double Dutch JV FONTERRA IS teaming up with a Dutch food company to establish a new cheese and dairy ingredients factory in the Netherlands. A-ware Food Group will operate a new cheese plant and Fonterra will operate a dairy ingredients plant alongside it. Whey and lactose produced there will be processed into premium nutritional ingredients to supply Fonterra customers in Europe and Asia. The two companies have signed a memorandum of agreement and will now begin due diligence, expecting to concluding the deal later this year Fonterra chief executive Theo Spierings says the proposed investment fits well with the strategic priorities of both companies. “We have substantial intellectual property in the manufacture of functional whey protein ingredients and have been looking for some time for a source of high quality whey to enable us to commercialise these innovations for customers around the world. “With our New Zealand Milk business driving hard to optimise returns, we are producing more milk powders in New Zealand and therefore need alternative sources of whey to meet growth requirements. We also need more lactose for our global ingredient business. This partnership will give us greater access to both.”

Jamie Tuuta says Maori agribusness enterprises provide around 10% of our national dairy production and carry 15% of the NZ’s sheep and beef stock units.

ing the assets,” he says. This may involve bringing land owners together to deliver higher returns as had occurred at a 189ha dairy farm in Normandy, Taranaki, milking 470 cows. This involved four Maori land blocks brought together into one economic unit. Maori agribusiness needed capable

leadership, investment in the workforce and training to increase management and governance capability. Tuuta says 150 years ago Maori established New Zealand as an agricultural nation but there has been a period when “our people have not had their hands in the soil”. Young Maori needed to

be encouraged back onto farms with pathways provided so they can see a way they can generate individual wealth. “As most of my relations say, ‘it’s not sexy waking up at 3.30am in the cold and wind and rain in Taranaki to milk cows.’ That’s something we need to focus on.”

Rural News // june 5, 2012

20 news

NAIT road shows prove popular p e te r bu rke

FARMERS’ TURNOUT to recent nationwide NAIT roadshows exceeded expectations, says chief executive Russell Burnard. He told Rural News

3800 farmers from around the North Island had attended one of the 29 seminars. Last week and this week 15 South Island meetings were scheduled. Farmers have generally been positive, many want-

ing to know how NAIT will operate and how they can meet their obligations, Burnard says. A few heave asked ‘why NAIT?’, but most are saying ‘right, it’s coming, what do I have to do?’. The

questions have been the same in most places. “Such as, “When do I have to do it? How do I get my tag numbers in there and record my animals? How do I do my movement recording? What

Farmers talking with tag and hardware suppliers at a recent NAIT road show seminar in Levin.

happens if I lose a tag?’ “They’ve been variations on those themes. We can answer those and we can move forward.” Burnard says anyone in charge of cattle, including lifestyle farmers, must register for NAIT by July 1. For deer the date is March 1, 2013. “The rule from July 1 for cattle is you’ll have to tag any animal born after that date within 180 days or movement, whichever comes first.” Dairy farmers are switched on to NAIT via information from organisations such as DairyNZ and LIC and because they already have tracking systems in place. Beef farmers may find it a bit harder than dairy farmers, but NAIT has tried to make it as simple as possible. “We are saying to beef farmers, ‘if you’re taking

your animals to a salesyard or to a meat processor, if they are accredited, then they can do many of the NAIT obligations for you. If you are doing private sales from farm to farm, ok NAIT does mean you’ve got to record those movements.” Burnard says while farmers will always look closely at costs, now they are saying ‘these are rules – what do I have to do and how can I maximise the benefit once I’ve got to face these costs?’ The key message to farmers is they must register before July 1, ideally online. “It’s not hard,” Burnard says. “If you can register on Trade Me you can register on NAIT.” The NAIT roadshow team will be at National Fieldays, Mystery Creek.

...sheep soon NATIONAL ANIMAL Identification and Tracing (NAIT) is likely to be introduced “sooner rather than later” for sheepmeat, says Minister for Primary Industries David Carter. “Our customers are continuing to demand traceability and if we want to sell our products overseas for a good price we have got to be prepared to meet their demands,” Carter told the DairyNZ Farmers Forum. He said many in the sheep industry were seeing that and taking the opportunity of including NAIT. Federated Farmers meat and fibre spokeswoman Jeanette Maxwell says NAIT would cost one tenth the worth of a sheep – with cattle it was far less of its total value. “And that is in a good year. If you go back a few years ago when a lamb fetched barely $60, it would have been one fifth of its cost.” She says for farms, particularly those doing big numbers, choosing to use e-ID (electronic identification) for RFID (radio frequency identification) to trace production gains there are definitely some benefits. But she does not believe NAIT should compulsory for sheep because there are no biosecurity issues over sheep at present. Landcorp chief executive Chris Kelly says their farms are using RFID tags in some sheep flocks at docking and measuring the progress of the animal by weight every week or two. “We are finding some really interesting stuff coming out – differences in growth rate between animals that are apparently grazed and managed in the same way, different growth rates in different forms of genetics, etc. That’s allowing us to make some on-farm decisions on how we feed them, how we can maximise their growth rates.”

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Rural News // june 5, 2012

22 news

Fonterra to cut fat from research ABOUT 40% of projects at Fonterra’s Research Centre in Palmerston North will be dropped because they don’t fit with the new strategy – particularly that dairy must be healthy. Fonterra chief executive Theo Spierings said

the projects will be sold, joint ventured or put into new strategic lines. “We are not going to actively drive them ourselves. Those are tough choices but that’s what strategy is about.” Questioned at the DairyNZ Farmers Forum about weaknesses in Fonterra, Spierings said he

had asked “Are we fast enough? We see how fast the Chinese are and the Americans can be when under pressure’.” He also said Fonterra could be too internally focused and he extended this to the whole country. “We are fantastically placed; we are the size of Japan but only 4.5 mil-

lion people. We have huge opportunities but we tumble so much over each other we forget to grab the opportunities.” Sometimes he thought Fonterra was too big for the size of the country. Everybody had an opinion on the company and was in the newspaper with it.

Giving details on the reviewed strategy, Spierings said they had 100 projects – 80 existing and 20 new projects. This was a reduction from 160 projects. A small innovation centre had started in Shanghai to test ingredients and invite customers in, as an example of sitting

Fonterra boss Theo Spierings has signalled it will be taking the knife to some projects that do not fit with the company’s growth strategy.

close to their customers. Also on China he said Fonterra did not want a second Sanlu, and would not grow its milk in China if it was not satisfied with safety. However the main thrust of its growth strategy was into those emerging markets of China, Asean and Latin America with 60% of New Zealand milk now going into those regions. Spierings said Fonterra would downsize in Europe and the US where it had had “a lot of investment, a lot of people” because those markets had lost relevance. They would look at joint ventures and “doing new things with partners, not everything by ourselves” in these markets. He said they had an

unpolished jewel in food service. “We have a $1.2 billion food service right now; we don’t actively drive it but I think we can grow this business two or three times that size.” A delegation had just been to India but there were no signs of the Indian government removing import barriers. Fonterra may open a small office there and possibly have a model farm but there would be no more investment until the barriers came down. Demand growth was forecast to be 10% with local growth just 2%, so that gap needed to be filled. Local milk pools would never be developed in Middle East and Africa because of the desert heat and the high cost of production.

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Rural News // june 5, 2012

24 news

Connecting with the East Coast Transport issues on the North Island East Coast are again in the spotlight, with fears the train line from Gisborne to Napier may close. Roads – even the main ones – are also in trouble, major washouts still undergoing repair months after recent floods. Rural News reporter Peter Burke visited Gisborne to see the region’s problems. YOU’D THINK the drive from Napier to Gisborne would be simple and

on SH2; the delays are part of everyday life. Go off the highway and gets worse.

quick, but it’s not. Signs such as ‘washout’, ‘stop’ and ‘one lane’ are common

See us at National Fieldays Site J9

to Gisborne, load them three quarters full and take them to Napier where we’d have to take the remaining squash down by truck and load this into the container. It was expensive, frustrating and difficult to manage because our customer wanted one container with one product line,” he says. But last year, Burke says, KiwiRail lowered the floor of its tunnels, enabling the train to take the larger containers and they started using that service until the recent floods. “For us that’s opened up a whole new world because we were able to export straight out of Gis-

borne. We can load containers at our facilities in [Gisborne], put them on the rail fully loaded to the maximum weight and once they are on the rail to Napier it’s pretty much shipped.” But he notes that for squash exports Leaderbrand would only use the line about three months of the year. Burke says the rail issue is much bigger than Leaderbrand; the real issue is economic growth in the region. He says it may be hard to argue short term for retaining the line for freight; a lot of money needs to be spent to repair and maintain it. “Gisborne is all about primary production and

for that to work we need good infrastructure We’ve got a dangerous road north at the moment; the road south is ok but it doesn’t take much for it to go out. We’ve got a port that, in reality, because of the larger ships they build these days, is not going to continue viable. “Now we’ve got a railway line they are considering closing. I say ‘hang on here if you want Gisborne to partake of economic growth, then we need to get the infrastructure right’. “We’ve got enough things going against us. I think the rail will work long term and be a success for Gisborne and the

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Rural News // june 5, 2012

news 25 Mayor leads crusade for rail to Wellington GISBORNE MAYOR Meng Foon says the rail link from Gisborne to Napier is very important to the region. He’s led local protests and gone to Wellington to make a case for its retention. Since KiwiRail increased the capacity and capability of the line, local businesses are starting to use it, he says. “Not long ago they had five wagons on the train a week now there up to 60. It’s unfortunate

the rainstorm blew the line out. For the future I think rail is the transport medium for heavy freight – especially with rising fuel prices. We need to look long term.” He says vegetables are the main produce carried by rail, but other industries are looking more closely at the rail option. For example, he says, a local quarry could move aggregates by rail. And some logs could

“Gisborne is all about primary production and for that to work we need good infrastructure We’ve got a dangerous road north at the moment; the road south is ok but it doesn’t take much for it to go out.” – Richard Burke, Leaderbrand country as a whole but it’s going to take time and resources. I just hope the Government is prepared to stump up.” Leaderbrand does use the Gisborne port, but it

can only take the smaller ‘charter’ ships. The shipping companies want to move away from smaller ports and take large containers from fewer and bigger ports.

Protecting roads help – experts FEW PEOPLE know the East Coast region’s roads better than Alister Gray, branch manager for Farmers Transport. He’s lived in Gisborne at least 40 years and his company is the biggest transporter of livestock in the region. He says the transport issues are not only about money; they have much to do with the nature of the clay soils – soft and prone to hold water, resulting in subsidence. East Coast soils are not like those across the ranges in Taupo – pumice, free-draining and hard. He says roading engineers have had to design roads with steep cambers to allow the water to run off quickly and also put deep drains on either sides of the roads. “So there’s no pulling off if you have a flat tyre. You just stop on the road and have them changed because you can’t pull over. It’s part of the challenge for the area.” Gray points out that many rural roads on the East Coast are single-lane roads and it’s almost impossible for two vehicle to pass. “It’s exceptionally challenging especially when you are dealing with a 44-tonne rig laden with stock which may be four decks high with lambs. Then we also have a height problem.” About 90% of the rural roads are gravel but the truckies do their best during wet winter months to protect the roads from damage. “We have a period of four months where we voluntarily isolate roads that aren’t up to what we call ‘class one’ standard. So we leave trailers on main roads and go in, pick up a truckload and bring it out and put it on the trailers and then take the truck in and come out again. “The issue we’ve struck is trying to convince our farmer customers that the extra cost and time involved is minimal compared with rebuilding a road. There are also staff safety issues, the cost of the vehicles and animal welfare issues.” Gray accepts that money for roading is limited but says this is one way of saving costly repairs to roads. Apart from lamb going to the works in Gisborne, most stock on the East Coast is carted out by road to freezing works in Auckland, Waikato and Hawkes Bay, and to other regions. Road transport is the only way. Rail has been tried and has animal welfare issues, not to mention white sheep turning black in tunnels.

go by rail to be shipped out of Napier. The mayor says he asked Prime Minister John Key to support the fixing of the line which he says would only cost about $3 million. “The primary message is ‘invest in our region’. We haven’t had any recent investment from the Government in our region.” Meng Foon also sees the

state of the region’s roads as a problem and says the rural roading network is starting to deteriorate. Lack of good roads means the district is unable to compete economically with other regions. Meanwhile Federated Farmers provincial president Hamish Cave has weighed into the issue calling on the Prime Minister to ‘not forget about Gisborne’. Everyone involved

needs to put their cards on the table, sit down and sort out what what’s needed to have a proper transport network in the region, Cave says. He points to the fragility of the present roading and warns that if goods now carried by rail are moved onto the roads, they will get damaged more easily. “We are a productive agricultural province and we want a slice of the taxpayers money.”

Meng Foon

Rural News // june 5, 2012

26 news

Succession planning not just for the All Blacks G RA H A M TU R L EY

FARMERS REGULARLY tell us succession is an issue for them yet only about one in ten has a

formal plan in place to transition ownership of the farm. This can limit the ability to introduce the next generation, limit the performance of the

business and lead to family dissension. A significant number of farmers want to pass their farm on to the next generation of their family. Over

the years we’ve witnessed thousands of transitions from parents to children. Looking across the most successful transitions, we see a few common traits.

The whole family – parents, and farming and non-farming children have a shared understanding of what they want to achieve in the long term.

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They operate their farm as a business, so it is profitable and able to give a return on family equity. As a result they do not over-gear to bring in the next generation, but leave capital in to maintain its financial strength, and use succession as a means to increase business performance, not weaken the business. The family understands that ownership, governance and business management are separate roles and that succession can occur in these roles at different times. There will often be two generations working in the business at the same time. In many farms, one farming couple holds the roles of governance, business management and doing the day-to-day work. There is nothing wrong with this, when it is understood these are separate roles and each needs due attention. If you wear all these hats, don’t wear them at the same time and get appropriate advice to be effective in each of them. For example, take time out from day-to-day work to give attention to business management or long term planning. Formalised roles are important in larger businesses As farms have become larger and more complex, there is a need to look at the more complex operating models. For example, we are seeing many more instances of more formal governance in New Zealand family farms and of clear separation of the roles of ownership, governance and business management. More clearly defining the roles creates succession options because each role does not need to change at the same time – for example a son may take over management but only progressively move into ownership. This allows the business to benefit from the experience of the older generation, even if they aren’t physically active on the farm, so their skills and

experience aren’t lost. Governance protects the interest of all shareholders, so capital can be left in the business. The incoming generation progressively increases skills, experience and responsibility to the stage where they have the capability to own and manage a multi-million dollar operation. In some cases nonfarming siblings have an active role in the family business and may bring in different skills, such as financial management. Aside from succession, there are immediate benefits from better definition of the roles. Even for smaller operations run by one farming couple, it can provide increased discipline in governance and business management. Farmers tell us of having separate family meetings on governance issues or ‘budget’ meetings where the only topics for discussion are the strategic and financial planning – all other topics are off limits at that particular time. Others tell us that having the defined areas of responsibility allows individuals to make decisions quickly without having to consult with the rest of the family. In many ways, it’s establishing the business rules that a commercial business employs – management has discretion to spend up to a certain amount but defers to the board for bigger financial decisions and longer-term strategic thinking. As a result of this more disciplined approach, it becomes easier to identify issues that need addressing or to have difficult conversations that may otherwise be avoided. Having the clearly defined roles also makes it easier to identify skills or knowledge gaps that can be plugged by external advice, and then makes it simpler to identify the right person to bring in. • Graham Turley is managing director commercial and agri at ANZ New Zealand.

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news 29

Agribusiness needs more than mascots RICHIE MCCAW is an iconic New Zealand rugby player; Fonterra is an iconic New Zealand company. Bringing the two into the same team – with McCaw becoming Fonterra’s ambassador – could be seen as a good move, but when you need strength in the scrum, bringing in a mascot is unlikely to greatly affect the outcome. The problem is society is concerned about the price of food and the impact of farming on the environment. Farmers are concerned the money they are receiving for their product is highly variable, and that costs are rising faster than income.

still the mainstay. It is also true river water quality is much higher in New Zealand than in most countries. The Waikato, for instance, has 100 times less nitrate than the Thames and the British are celebrating how clean their main river is. Whether Richie will be able to explain all this to

Fonterra’s board includes farm business people, and accountants, but in order to meet the challenges of the future, the board needs people who understand environmental science and can communicate the issues. Of further concern is that regulations in environmental management are being imposed by people appointed to regional councils whose scientific understanding of the vast complexities involved is poor. These councillors are elected by ratepayers often with even less understanding, but with personal beliefs that drive them to attempt to make a difference. The system is unlikely to result in long term survival in terms of the economy, agricultural sustainability or the needs of individual members of the community. Fact is New Zealand has some of the cheapest food as a proportion of household income in the world – in the same bracket as America, Canada, Australia and Scandinavia. Much food in New Zealand is imported (tropical and out-of-season fruit and vegetables, rice, pasta, sugar, coffee, tea, chocolate, many flour and oat-based goods such as biscuits and cereals). This means supermarket food prices are influenced by overseas exchange rates and growing seasons as well as overseas demand. Being able to pay for these foods means a good export economy – and farming is

society is a moot point. Although he has received an honorary Doctor of Natural Resources degree from Lincoln University, the award was for his rugby achievements. It does not indicate he has an advanced understanding of natural resources, yet this is exactly what would be useful to Fonterra. Fonterra’s board includes farm business people, and accountants, but in order to meet the challenges of the future, the board needs people who understand environmental science and can communicate the issues. An understanding of communication ensures the consequences of alternative actions are understood by society, farmers and policy analysts in government, as well as by the management and governance structures of any company. Without these experts on a board, the management team has the bulk of the responsibility in decision making, and the independent assessment of a strategy and rigour of debate about it is limited. Richie McCaw is a great guy. His presence at events might lead to more people being present to hear words from Fonter-

ra’s board members, but unless there is science and communication expertise on that board, the words are unlikely to result in improved understanding by farmers, society or government. It is a disappointment to all involved in the industry that New Zealand has arrived at a point

where popularist personalities – great rugby players or not – are required to elevate the status of the national icon that is Fonterra. To convert its ‘try’ to points on the scoreboard, Fonterra could do with a broader game plan. • Jacqueline Rowarth is Professor of Agribusiness, The University of Waikato.

Fonterra’s new ambassador Richie McCaw with Theo Spierings.

Rural News // june 5, 2012

30 world

Basin plan draws flack from all sides STE P H E N CO O K E

THE MURRAY Darling Basin Plan designed to return water from irrigation use to waterways in four states of Australia has drawn fire from every stakeholder. The plan devised by the Murray Darling Basin Authority is the second to

be released in 18 months after the first plan drew the ire of regional communities and farmers. The initial plan suggested cutting 4000 gigalitres of irrigation entitlements within the basin – which stretches from Queensland, through NSW and Victoria and into South Australia. This

water would ensure more water coursed through the rivers and wetlands in the basin. That plan drew crowds of angry farmers to community meetings, where they burned copies of the plan. Irrigators, farmers and regional

Federal Agriculture Minister Tony Burke’s latest plans for the Murray Darling Basin have not found favour with stakeholders.

leaders said such cuts would destroy thousands of jobs and therefore local communities. The new plan – released this week – was overseen by a new MDBA chairman put in place by the minority Federal Government. Although it has reduced the amount of irrigation water it

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says is needed to protect the health of the Basin to 2750GL, State Governments, farm groups band irrigators say little else has changed. Their key concern is the Federal Government entering the water market and buying water rights back from farmers, putting pressure on communities and irrigators that want to remain. Environment groups and the Greens – who the Federal Government rely on to hold office – say the plan does not release enough water to ensure the health of the river system. Victorian Farmers Federation president Peter Tuohey said the MDBA’s consultation process –

know and won’t know for at least another three years how, when, where, why or what it wants to water?” McMahon said. Australian Dairy Industry Council Basin Taskforce chairman Daryl Hoey said he was particularly concerned about misleading information in the plan’s socio-economic summary report. He said an example was the claim irrigators only face a 19% reduction in water, after accounting for infrastructure savings. However, this is a proportion of all water diverted in the basin, including for Adelaide, other towns, manufacturing and mining, as well as agriculture. “In truth, the reduction

Australian Dairy Industry Council Basin Taskforce chair Daryl Hoey has expressed major concerns over the new plan.

which involved travelling around Australia to listen to concerned parties at community forums – had been a sham. “They’ve failed to listen to our call that all further water for the environment be recovered by more efficient watering of wetlands and river operations – not just buyouts of irrigators’ water,” Tuohey said. “Failure to include these measures means the Federal Government will just rely on buyouts.” Tuohey said the revised draft Murray Darling Basin Plan handed to State Water Ministers does not include crucial changes needed to minimise the impact of draining water out of irrigation communities. National Irrigators Council chairman Gavin McMahon said the plan does not include an environmental watering plan to explain where the water will be used. “How has the Government come up with any number when it doesn’t

will be about 30%, based on Australian Bureau of Statistics data of actual irrigation water use – and the Government is only targeting irrigators’ water for purchase for the environment,” Hoey said. MDBA boss Craig Knowles has said environmental works – which could achieve desired environmental outcomes with less water through new infrastructure - would be considered as part of a review of the basin plan in 2015. But the VFF has said that’s not good enough. “We want these changes enshrined in the final plan, not left to some distant review,” Tuohey said. Hoey agrees: “The authority is trying to palm off the hard decisions to the 2015 review, when it knows full well it is legally locking the Federal Government into buybacks as the investment priority in the meantime. So by the time we get to 2015, the socio-economic damage will have been done.”

Rural News // june 5, 2012

world 31

Sealing the deal: Malaysian trade minister Mustapha Mohamed with Australian counterpart Craig Emerson after signing the deal.

AUSTRALIAN DAIRY, rice and wine exporters to Malaysia are the biggest winners in a free trade agreement (FTA) signed between the two countries last month. The deal, signed after seven years of negotiations, allows a liberalised licensing arrangement for Australian liquid milk exporters and allows access for higher value retail products. It guarantees Australian wine exporters the best tariff treatment Malaysia gives any country. It also allows open access arrangements from 2023 for Australian rice with all tariffs eliminated by 2026. The National Farmers’ Federation says the trade deal will improve international market access for Australian agricultural goods. “After seven years of negotiation, the NFF is under no illusion of how challenging it has been to complete this FTA with Malaysia,” NFF vice president Duncan Fraser says. The FTA will fill a number of gaps within the ASEAN-Australia-New Zealand FTA (AANZFTA). “Protectionist sentiment over agricultural goods is rife and grow-

ing across the globe, so in this context it is pleasing Australia has managed to forge an agreement with Malaysia that has dealt with some sensitive agricultural issues

pleted FTA with Malaysia in place.” The FTA also signals some administrative benefits for Australian agricultural exporters through streamlining of rules-of-

“These are all markets with enormous growth opportunities and where significant barriers to trade in agriculture still exist, not only through tariffs that restrict trade but also through technical or so called ‘behind the border’ restrictions.” – Duncan Fraser

not effectively covered by AANZFTA,” says Fraser. “While under the AANZFTA agreement most of Australian agriculture’s key interests had tariffs bound at zero, dairy and rice are two sectors where incremental market access improvements have been negotiated under the Malaysian FTA. “This trade deal was also particularly important for sectors such as dairy that have been facing a competitive disadvantage in Malaysia compared with New Zealand which already has a com-

origin declaration processes and improved marketing arrangements for certain commodities. The Malaysian market is worth about A$1 billion in Australia agricultural exports – including being its fourth-largest sugar export market and fifth-largest wheat export market. With an annual economic growth at about 5%, Malaysia forms an important part of the ‘Asian Century’ story and the opportunity this presents for Australian agricultural producers, says Fraser.

Despite the completion of this agreement, much remains to be done for Australia’s farmers to tap into the full potential of the Asian region and beyond. He says the NFF will now throw its attention towards ensuring agriculture remains front and centre in completed FTAs with South Korea, Japan, China and Indonesia as immediate priorities. “These are all markets with enormous growth opportunities and where significant barriers to trade in agriculture still exist, not only through tariffs that restrict trade but also through technical or so called ‘behind the border’ restrictions.” The FTA was signed on May 22 in Kuala Lumpur by Australia’s Trade and Competiveness Minister Craig Emerson and his Malaysian counterpart Mustapa Mohamed. Emerson says Australia will be as well-positioned in the Malaysian market as Malaysia’s closest trading partners in ASEAN, and in some cases better. The FTA will guarantee tarifffree entry for 97.6% of current goods exports from Australia once it enters into force. This will rise to 99% by 2017.

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32 world

Dairy smiles on Irish THE IRISH dairy sector has the potential to create 15,000 jobs over the next three-five years, in the process giving a muchneeded boost to the Irish economy in exports and in direct and indirect employment. Independent economist Ciaran Fitzgerald told the National Dairy

Council’s annual conference in Dublin that the Irish dairy sector is one of the few sectors that has shown strong growth in recent years. “It already directly and indirectly employs 34,000 people and is a huge part of our export trade with dairy exports valued at NZ$4.49 billion in 2011,”

Fitzgerald says. With the abolition of EU milk quotas in 2015 that growth is predicted to increase by 50%. “Because the dairy sector buys 85% of its inputs in the Irish economy, a NZ$2.2 billion increase in output will have a huge positive multiplier impact across

the economy – and also across the regions,” Fitzgerald says. Council chief executive Zoë Kavanagh claimed that as a business model, the Irish dairy industry is unique. Its foundations are a community of farmers, processors and professionals who, in

their combined activities, deliver excellence in an often challenging and highly competitive environment University College Dublin economist John Fanning calls the dairy industry the “jewel in the crown” of Ireland’s economic recovery. • Alan Harmon

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DAIRY CO-OP Arla Foods is spreading its wings in Europe through two mergers planned for later this month. If the mergers with UK’s fourth-largest dairy co-op Milk Link and German co-op Milch-Union Hocheifel (MUH) are approved on June 26, Arla will become one of Europe’s leading dairy groups represented by owners in six countries: UK, Sweden, Denmark and Germany, Belgium and Luxembourg. The merger will make Arla the UK’s largest dairy company and it will rank third in Germany. The two planned mergers will immediately increase Arla’s revenue by $2 billion per year. Arla chief executive Peder Tuborgh says the growth goes hand-in-hand with Arla’s Strategy 2015, the key objective of which is to improve returns for its owners by, among other things, enhancing their positions in the core markets of the UK and Germany. “If the owners agree on these mergers, it will strengthen Arla Foods’ position as one of Europe’s leading dairy companies: a broad ownership, which delivers significant volumes and a very strong product mix – for consumers and for the industry – under well known brands as well as own label,” say Tuborgh. Both Milk Link and Milch-Union Hocheifel are strong, well run dairy groups which, with their product portfolios and production systems, will strengthen our business in both countries, he says. Like Arla Foods, both companies are owned by dairy farmers. ”In each of the three companies, the aim is to create value for our farmer owners in the form of a strong milk price. This will also be the case going forward, and our ability to deliver good results will be strengthened if these plans are realised.” Tuborgh says another Arla objective is to achieve revenues of $16b by 2015. With Milk Link and MUH, Arla hopes its group revenues will reach $15.5b by 2013. Arla chairman Ake Hantoft says over the course of the negotiating process, it noted a strong relationship with the other two companies. “All three dairy companies have been created by milk producers who, through investment, have built up companies that we can be proud of. Together, we’re now creating a company that will be well placed to take milk, our raw material, and create the highest possible value from it,” says Hantoft. “The strength and value lies in the fact that a cooperative dairy can rank among the world’s leading dairy companies, and this cannot be underestimated.” The mergers are also a significant step for MUH and Milk Link who both want to ensure access to more markets, a broader product portfolio and a more stable return for their owners. Both companies hope to achieve this by tapping into Arla’s greater access to worldwide markets. “We’re already a European dairy company, but through a merger with Arla we’re pursuing our strategy of becoming an international company able to provide a favourable and stable milk price,” says MUH chief executive Rainer Sievers. “A merger will strengthen our position in Germany and mean that our prodThe mergers will ucts gain access to mean Arla Foods more markets,” will grow from 8024 Milk Link chief cooperative owners in executive Neil KenDenmark, Sweden and nedy says the merger Germany to 12,300 will bring together cooperative owners two successful, in Denmark, Sweden, growth-orientated Germany, Belgium, farmer-owned dairy Luxembourg and the businesses with comUK. plementary positions in key markets, brands and customer bases. “It reflects and reinforces Milk Link’s position as the UK’s leading dairy businesses and recognises and rewards the ongoing loyalty and commitment of our members,” he says.

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Rural News // june 5, 2012

agribusiness 33

Zeroing in on Budget 2012 The Budget for the 2012-13 fiscal year beginning July 1, continues to forecast a return to surplus before the end of the 2015 fiscal year. Government intends to hold spending near current levels, with net new Government spending to 2016 totaling just $26.5 million. Tax revenue is expected to increase by $1.36 billion over four years to the end of fiscal year 2016, with changes including tightening rules for deduction of the costs of assets, for example holiday homes and boats used by owners and renters. Smokers are hardest hit with tobacco excise tax to rise by 10% each year for four years, increasing revenue by $528 million over the period. Rebuilding in Christchurch, which is recovering from a series of devastating earthquakes, is still expected to cost the Government $5.5 billion before the end of fiscal 2016. Treasury expects net Government debt in the forecast period to peak at 28.7% of gross domestic product in fiscal 2014, down from February’s

forecast of a peak of 29.6% in the same period and below the Government’s objective of 30%. Tax rates No changes are being made to the existing key tax rates. The current key tax rates are as follows: • GST – 15% • Corporate tax rate – 28% • Trustee tax rate – 33% • Income tax rates for individuals are (see table 1): This compares with the key tax rates in Australia, which are follows: • GST – 10% • Corporate tax rate – 30% • Trustee tax rate – 45% • Income tax rates for individuals are (see table 2): Future Investment Fund The Government expects to raise $5 - $7 billion from the partial sale of State Owned Enterprises (SOE) and Air New Zealand, and holding this amount as the Future Investment Fund. The Future Investment Fund will then invest the funds into new taxpayer assets over the next few years. The first allocation of funding will be as follows: • $88.1 million for the health sector, most of which will go towards hospital redevelopments;

• $250 million for KiwiRail’s turnaround plan; • $76 million for capital cost of establishing the

removed a range of tax credits including the childcare and housekeeper tax credits, the under $9,880

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$48,001-$70,000

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33.00%

Advanced Technology Institute; • $34 million to fit out schools with advanced broadband technology The first of the four SOEs, Mighty River Power, is likely to be partially floated in the third quarter of 2012. The Government intends to maintain its majority shareholding of all the entities in the Mixed Ownership Model. More money for the IRD The Government has announced that the Inland Revenue Department will receive an extra $78.4 million over the next 4 years. This is to bolster its tax compliance activities in dealing with the “black” economy, debt recovery and following up unfiled returns. Tax credit reform The Government has

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subsidy. The removal of these tax credits will save $117 million over the next four years. Kiwisaver reform The budget has provided a number of changes to KiwiSaver. In perhaps the biggest surprise in this year’s budget, the Government has put off plans to look at the automatic enrolment of workers into KiwiSaver. The Government has deferred this until such time as there are sufficient surpluses to fund the estimated 4 year cost (which is approximately $514 million). The employee minimum contribution to

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$180,000 and over

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KiwiSaver will increase from 2% to 3% at 1 April, 2013. This is not surprising since it was announced in the 2011 Budget. ‘Mixed use’ assets Changes to the tax treatment of “mixed use” assets (assets that are used both in business and privately) were foreshadowed in the 2011 Budget. Examples of assets that commonly have a “mixed use” are holiday homes, boats and aircrafts. The new rules will require “mixed use” assets owners to apportion their deductions based on the actual income earned and the private use of the asset. For example, if a person rents out a holiday home for 30 days in a year and uses it personally for 30 days in a year, they will now be able to claim only 50% of the costs as a tax deduction (instead of the 90% they are currently allowed). This is forecast to generate an additional $109 million of tax revenue, over the next

four years. Student loan reform Student loan repayments rates will increase from 10 cents to 12 cents for each dollar once income goes over $19,084 per year, effective from 1 April 2013. In addition, voluntary repayment bonus and student allowance for postgraduate study will no longer be offered. Livestock valuation Budget legislation will put the previously announced, livestock valuation restrictions into law. Restrictions will be placed on a farmer’s ability to switch between livestock valuation methods. Previously farmers were able to switch between the two main livestock valuation methods to receive a tax advantage. Effective from 18 August 2011, farmers will no longer be allowed to switch between the 2 alternative methods, except in narrow circumstances.

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34 agribusiness

Government intervention no longer a threat A TAF ‘no’ vote no longer carries the threat of Government intervention. For so long we have heard we need TAF and its investor-owned fund to solve redemption risk and ‘stabilise’ Fonterra’s balance sheet. TAF replaces some capital that is currently contributed to the cooperative by farmers, with capital contributed instead by non-farmers. Some of these will be offshore institutional investors, some will be speculators, some we simply can’t predict who they will be. Speculators and traders need volatility from which to profit – that’s their purpose. Dairy cooperatives need stability of supply to keep their stainless steel full, maximising their efficiency and hence maximising the milk price to their farmer owners – that’s their purpose. Peaks and troughs in the Fonterra

They are in fact traded in a restricted share value will be driven by the trading to enhance their investment returns? So activity of the 25% of non-farmers who far it’s been two years, $50 million dol- market between Fonterra and farmers, will own Fonterra securities under TAF. lars and Fonterra inviting Government as has always been accepted by co-operThis creates a much greater oppor- regulation into our business for inves- ative members. Farmers and Fonterra submitted to the tunity for farmers to end up with much tor protection. And if TAF’s investor fund gets a ‘yes’ select committee that this more – or much less – than fair value on entry and exit of Fon- vote, how long will the suspender belt ruling for ‘artificial‘ valuation Simon Couper stood down as Shareholder Council is illogical and not terra. Our share chair over TAF. helpful. We have now price will be set by Speculators and traders been assured progress what outside inves- need volatility from which to has been made toward reduc- – who has had access to the blueprint tors are prepared profit – that’s their purpose. ing the impacts of government and the world’s best independent to pay. intervention in a non-TAF envi- advice. Simon stood for the promised So how do we see the traders 100% ownership and control by farmronment. who need volatility, alongside the farm- stay in place after the wedding night? This means a vote against TAF will ers for farmers. He stood down from his The good news is this: since this ers who need stability, complementing each other in this great big ‘friendly’ long debate has occurred it has focused leave us in a better position than we role as chair of the Shareholders Counequity partnership? How has Fonterra attention on Government regulation were in prior to the current proposed cil on the basis this cannot be delivered. Men of that calibre built this indusfor so long got away with arguing that that has contributed to redemption risk. restructure. Better able to value our this scenario helps stabilise the coop- Farmers have been told that if they don’t share realistically and without the need try. Others would see it dismantled vote for TAF they are stuck with legisla- for a fund for ‘price discovery’, as one while paying lip service to ownership erative? and control. At what cost the ‘belts and braces’ in tion requiring Fonterra shares be valued director put it. I simply don’t trust the suspender • Leonie Guiney is a South Canterbury place to prevent organised institutional as if they are traded in an open market – investors using their cash and lawyers to even though in a non-TAF environment belts or braces and judging by his recent dairy farmer, Fonterra shareholder and resignation neither does Simon Couper outspoken critic of TAF. exert some control over the milk price they are not.

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36 agribusiness

Dairy’s future – doing more with less pam ti pa

LABOUR MANAGEMENT and availability was a key driver for automation and would take dairying into the premier league of industries to work in, says

De Laval’s Oceana president Richard Alderton. Automatic milking systems will change the working lives of farmers and the type of labour they could attract. “To increase milk pro-

duction, New Zealand and Australian farms have traditionally got more cows and more land,” Alderton says. “That has become more and more expensive so the challenge is we have to do more with less.”

He was speaking at an industry open day for the first commercial automatic rotary shed (AMR) at the Gala, one of five farms near Deloraine in north-west Tasmania, owned by three gen-

AMR is already changing the way Nick Dournauf operates, he no longer physically puts on cups but spends more time analysing data garnered from the system.

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erations of the Dornauf family. Nick Dornauf, from the youngest generation, runs Gala with partner Rebekah Tyler, automatically milking the first cows on the 24-unit herringbone platform AMS in February. The AMS uses five robots: two for udder preparation, two for cup attachment and one for teat disinfection after milking. They now milk 250 New Zealand Friesians, 90% heifers and 10% mature cows, and aim to reach 550-600 cows by 2015. They have been bringing the cows to the dairy in batches, but are about to start voluntary cow movement. Questions still remain as to how far cows will walk for voluntary milking. Nick, an agri-science graduate, spoke of his excitement at the intellectual challenges of managing the first commercial AMR (the only two others are on research farms) and making the most of huge amounts of data coming from the system, including per-quartile readings. He told Rural News it was already changing the way his job operated – he was no longer physically putting cups on and spending more time on herd and pasture management. He spent about one hour per day analysing data from the system, but expected that to increase markedly as the cow moved to voluntary milking.

The per-quartile readings were giving far earlier signs of mastitis and early treatment would help farm profitability. He said he had to learn to trust the data because it was throwing up signs before any clinical symptoms – but the cows often developed mastitis two or three days later. Alderton said with the global demand for milk growing about 2% per annum, De Laval with its global reach had a responsibility to help meet that demand sustainably. Box-type automated systems were already available for herds of up to 300 cows but De Laval developed the rotary system to cater for larger herds. “Wherever you go in the world there are labour constraints; even in the ‘third world’ where labour is cheap, labour is still a problem,” he said De Laval’s New Zealand based systems specialist for AMR, Ron Mulder, said when farmers make investment choices for the next 20 years AMR should be considered. Work was still being done on developing grazing systems, voluntary cow movement, best use of data and incorporating the new technology young people were using such as smartphones and tablets into the farm systems. “I think is going to change people’s lives as well and make the dairy industry a very attractive industry to be part of.”

in brief New chief for Enviro Southland ROB PHILLIPS is appointed chief executive, Environment Southland. He is currently director of operations, Taranaki Regional Council. Chair Ali Timms says this experience along with his previous position at Environment Canterbury, means he brings lots of experience to the position.

Rural News // june 5, 2012

agribusiness 37

Managing the books in tough times J ohn Key

THIS BUDGET does what governments around the world are striving to achieve: it gets the Government’s books back into shape, and does so in a way that continues to support New Zealanders, maintain public services and protect the most vulnerable in our society. That’s a far cry from the measures many governments overseas have had to introduce. The headline measure of our financial management in the Budget is the

Growth in New Zealand over the next three years is forecast to be higher than in any of the countries I just mentioned, with the exception of Australia, which is expected to have about the same growth rates as New Zealand. That’s because growth in New Zealand will be based on strong fundamentals, which the Budget forecasts recognise. The Government’s role is to make sure the economy’s settings are conducive to business confidence and growth.

Looking forward, growth across the developed world will now have to be earned the hard way. It won’t be stoked by government spending and it won’t be fed by a big increase in borrowing. fact that we are on track to post an operating surplus in 2014/15. It’s not the world’s biggest surplus but it’s an important milestone. That represents a huge turn-around, given the impacts of the 2008 recession, the global financial crisis and the Canterbury earthquakes. Each of those events on its own would have been a big shock to the New Zealand economy. It allows us to pursue the other three priorities of the Government: • To build a more productive and competitive economy. • To deliver better public services, within tight financial constraints. • And to support the rebuilding of Christchurch. Households, businesses and governments are having to reduce the debt they built up over the 2000s, and they are saving rather than spending. The Budget forecasts, which follow a similar pattern to other international forecasts, predict that over the next three years: • The Euro area will grow at an average of only 0.5% per year. • The UK will grow at just over 1% per year. • Japan at 1.5% per year. • The US and Canada at just over 2% per year. • And Australia at about 3% per year

From July 1, marginal tax rates will be lower in New Zealand than in Australia for anyone earning over $18,200. Our company tax rate is 28%, while Australia has confirmed its rate is staying at 30%. The Budget includes $326 million of operating and capital funding for science and innovation over four years, including $166 million for the Advanced Technology Institute to help high-tech firms get their best ideas out of the lab and into the marketplace faster. To complement this, we are also investing in training more engineers and scientists. In the resources area, our improvements to the Resource Management Act have led to faster consenting for large, nationally significant projects. The Government’s next step is to introduce faster consenting for mediumsized projects by means of a six-month time limit. In workplaces we have introduced 90-day trial periods for new employees, encouraging businesses to take on new staff. And we are improving collective bargaining processes to reduce bureaucracy and costs. We continue to invest heavily in New Zealand’s infrastructure, including at least $1 billion a year in state highway improvements, $1.35 billion for

John Key

ultra-fast broadband, a further $300 million for the Rural Broadband Initiative, a substantial upgrade of the nation’s electricity grid, investment in national and commuter rail, and continued spending on schools and hospitals. The Budget continues this programme

of investment in productive infrastructure. In particular, the Budget establishes the Future Investment Fund, which will receive all proceeds from the Government’s sale of up to 49% of shares in four SOEs and Air New Zealand. The proceeds are expected to be

between $5 billion and $7 billion, and will be reinvested in public assets, such as modern schools and hospitals, over the next few budgets. This year’s Budget achieves a balance many other countries would dearly like to emulate. By committing to sur-

plus by 2014/15 we are taking a responsible path of fiscal management, while at the same time continuing to invest in future growth. • This is an abridged version of Prime Minister John Key’s post-budget speech to the Trans-Tasman Business Circle.

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Rural News // june 5, 2012

38 opinion editorial

edna

A long three weeks! THEY SAY one week is a long time in politics, but three weeks is a lifetime in the current dairy industry political environment. The shock exit of Fonterra Shareholders Council chairman Simon Couper confirms TAF (trading among farmers) is not a done deal among councillors. To allow TAF’s launch, the council must tick the ‘fifth box’, given that Fonterra’s board is indicating it has ticked the other four boxes including due diligence on the proposed share trading scheme. The new council chairman, Ian Brown, says there is “unanimous support” for TAF among the councillors. But can we really believe him? After all, only last month Couper and Brown were seen endorsing TAF, sitting with Fonterra chairman Henry van der Heyden before the Dairy Industry Restructuring Act (DIRA) parliamentary sub-committee. Our sources say only 80% of the councillors believe TAF will deliver 100% farmer ownership and control. Will these other disgruntled councillors come out of the woodwork and resign, like Couper? Or will they continue to deceive Fonterra shareholders by publicly stating all is well while harbouring concerns in their hearts? Three weeks out from the shareholder vote on TAF, the proposed share trading scheme remains unpopular among some shareholders. Most have concerns about milk price and the shareholders fund, which will sell share units to outside investors. A big fund means more share units could end up with outside investors. And the investors will demand a bigger dividend at the expense of the milk payout to farmers. Couper’s resignation emboldens the group – dubbed a vocal minority by Fonterra – pushing for greater safeguards in TAF for 100% farmer control and ownership. It does little to settle nervous shareholders. This week Fonterra directors and management will be crisscrossing the country, keen to rope in shareholders undecided on TAF. In tow will be Fonterra Shareholders Council members. Meanwhile Fonterra shareholders will be asking tough questions. But will they get the right answers? Shareholders councillors need to come clean. Farmers must know whether the council is “unanimous” in its support for TAF, as stated last week by the new chairman Brown. Councillors with reservations must raise their hands. Putting on a show of unity in front of shareholders, when divisions run deep in the council, is not right. Couper has done the right thing by coming out. It’s time for all councillors to lay their cards on the table. With three weeks to go before the vote, Fonterra farmers need the truth. Couper’s resignation may not be a fatal blow for TAF but if more councillors follow suit, it will leave the proposed scheme badly wounded.

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the hound No surprises there! A STUDY at Loyola University, New Orleans, found that people who eat organic food are more judgmental and volunteer less often than those who eat comfort food. “There’s something about being exposed to organic food that made them feel better about themselves,” says psychologist Kendall Eskine. “And that made them kind of jerks a little bit, I guess.” Your canine crusader reckons one only has to listen to the sanctimonious, smug and superior utterings of organic proponents to quickly deduce they are just a bunch of jerks.

Save

Golden glow! APPARENTLY THE placenta of New Zealand sheep have been heralded as helping former Spice Girl Victoria Beckham maintain a radiant glow via a bizarre facial treatment. Kiwi sheep placenta combined with gold flakes is reportedly a Hollywood fad on a growing list of unorthodox beauty treatments for celebrities such as Beckham. The facials, aimed at harnessing “the power of the sheep’s stem cells’’, cost NZ$670 per visit. Your old mate has heard of some interesting uses of sheep by-products in his time, but reckons this takes the cake!

Meanwhile, back on Planet Green THIS YEAR’S zero Budget held little hope for those who believe Governments should spend big and tax even bigger. Despite strong evidence from Europe – where countries are in major trouble for following such policies – the Green Party believes this is exactly the economic formula New Zealand should be following to get us out of the economic mire. So even before Finance Minister Bill English had delivered the Budget, the Greens were writing it off saying if their party was in government its “smart green economics” would among other things

reverse the tax cuts implemented in 2009, hike a massive carbon tax on farmers and stop building motorways. The Hound is not sure what is so ‘smart’ or ‘green’ about taxing out of business one NZ’s key major export earners – the dairy industry – only to see overseas dairy producers fill the gap left in world dairy trade with milk and cheese products that have carbon footprints the size of Sasquatch! It reminds him of the apt description about the Greens as spending too much time worrying about how to save planet earth and not enough time actually living on it!

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Rural News // june 5, 2012

opinion 39

Court the only option for NZ Pork ian ca rte r

HAVING SPENT my working life farming sheep, beef and dairy as well as pigs, I’m the first to recognise that New Zealand is dependent on transparently setting standards for international trading of agricultural products. But all my farming experience has shown me how crucial New Zealand’s high biosecurity status is to our longterm economic security. Last year NZPork went

The financial cost to the industry has been very high. We’ve sought scientific analyses and made submissions to the ministry, as well as our legal costs – $1.4 million to date – but the cost to our animals and our industry if PRRS becomes established in New Zealand would be much more severe. We went to court to question the process the ministry’s director-general is required to follow when considering an indepen-

Imagine how the red meat industry would react to a similar approach that allowed imports of meat from countries infected with foot-and-mouth disease. to the High Court to challenge the process for setting new import health standards for pig meat, after MAF (now Ministry for Primary Industries) decided to allow imports of untreated pig meat from countries where the Porcine Reproductive and Respiratory Syndrome (PRRS) virus is present. The High Court found in favour of the ministry, and NZPork has been left with no option but to appeal. Our legal advice is that we have a substantive case. However, it is a great disappointment that we have to pursue a legal route. It’s a step we’ve had to take after numerous attempts to engage with MPI on how the risk is expected to be managed in New Zealand have come to nothing. Quite simply, NZPork’s objective is to keep this devastating disease away from the New Zealand herd.

dent review panel’s report. The scientific concerns of our experts were endorsed by the panel, but the director-general proceeded to approve the new import health standards anyway. In essence, the High Court decided the director-general could consider the independent review panel as just another piece of advice to be accepted, rejected or ignored. The impact of the process MPI followed has very serious implications on the risk of PRRS to our pig herd. Our own scientific assessment, by internationally recognised epidemiologists with pig disease expertise, is radically different from the analysis on which MPI based the new standards. There is scant science to guide any assessment of the infectiousness of infected pig meat. MPI has done no assessment on the quantities of infected pig meat

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that will enter New Zealand, nor how much infected meat would end up as a waste product, or how much of that waste would be fed to pigs. MPI’s own assessment is that the Biosecurity (Meat and Food Waste for Pigs) Regulations 2005 – which in theory stop people feeding uncooked swill to pigs – are unenforceable. Waste feeding rules have not been broadly enforced since 1999. Given the widespread level of pig ownership in New Zealand, the established culture of waste feeding, and the highly infectious nature of PRRS, permitting the distribution of infectious meat throughout New Zealand is a risk we cannot afford to take. Under the World Trade Organisation’s sanitary and phytosanitary measures (SPS), New Zealand is entitled to policies which protect its animal life, provided these are based on appropriate scientific evidence. Our scientific experts believe the previous standards were required to manage the risk of the introduction of PRRS, and that the new standards pose an unacceptable risk. The WTO requires protections under SPS to be set at a consistent level across all industries within a country. I can only imagine how the red meat industry would react to a similar approach that allowed imports of meat from countries infected with foot-and-mouth disease, so long as each piece of meat was less than 3kg with major lymph nodes removed.

Ian Carter says NZPork needs to test the ruling in court.

There are simply too many unanswered questions and too many risks. We can compete with imported meat, but don’t expose our animals to devastating exotic diseases at the same time. • Ian Carter, is the chairman of NZPork

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Rural News // june 5, 2012

40 opinion

Making a sow’s ear out of a silk purse I’M ALL for free trade and opening up the world – especially to New Zealand’s top-class agricultural produce. However, I am really struggling with new rules which now allow sales of imported fresh pork cuts into this country. The recent High Court judgement which ruled in favour of the new Import Health Standard (IHS) imposed by the newly monikered Ministry for Primary Industries (MPI) and its support for fresh pork imports, seems to me flawed. Don’t imagine I’ve had a Winston Petersesque conversion to red-neck, simplistic, jingoistic, nationalistic, anti-immigration and

anti-trade stupidity. It’s just that these new pork import regulations do not seem to make sense. So I’m pleased to see that the Industry body New Zealand Pork, which has already spent $1.4 million fighting the case, is now appealing this latest ruling. NZ Pork claims there is a risk of fresh pork imports bringing an antiimmune response virus into the country – and with it Porcine Reproductive and Respiratory Syndrome (PRRS), from which New Zealand is currently free. In herds not previously exposed to the virus PRRS can kill 70% of piglets and increase abortions and stillbirths. Local pig farmers fear an incur-

sion here could wipe out our industry. NZ Pork argues that the MPI has breached the Biosecurity Act by following an incorrect process in allowing the importation of raw pork, which could be infected with the deadly PPRS virus. But MPI claims the industry is being protectionist and using biosecurity as a barrier to trade. It believes the likelihood of a PRRS incursion is slim and says it was not driven by international obligations to its decision to allow consumer-ready cuts of raw pork into the country. However, as a casual observer, I find it hard to see how this decision is anything other than a

So is our pig farming sector being used as a bargaining chip and left naked and unarmed?

sop to placate claims by overseas counterparts that New Zealand is antifree trade – especially when MPI director general Wayne McNee admits it was “extremely important” that NZ demonstrates its commitment to obligations under its World Trade Organisation agreement. Says McNee, “That means we cannot place restrictions on animal and plant product imports that

are not aligned with international standards or supported by scientific risk assessments.” Hmmm… and what was that about the MPI?: “Not been driven to its decision to allow consumer-ready cuts of raw pork into the country by international obligations?” So if there has to be a sacrificial lamb, then better it be the relatively small pig sector rather than the more financially important dairy, red meat or horticulture sectors. As NZ Pork chairman Ian Carter argues, the local industry is not anti-trade or protectionist; 45% of all pork sold in this country is imported.

Former agriculture and trade minister Jim Sutton was fond of accusing (admittedly more so in opposition than when actually in government) the country’s trade negotiators and officials of being too keen on stripping away protections that left NZ exporters naked and unarmed in international trade combat. So is our pig farming sector being used as a bargaining chip and left naked and unarmed? Meanwhile, when all this imported fresh pork comes flooding into the country from overseas, will we see crackpot outfits like SAFE (Save Animals From Exploitation)

and the eye-watering, unfunny comedian Mike King running around pig farms in Indonesia, China and outer Mongolia bawling their eyes out about the plight of pigs on these properties? You can bet your bottom dollar pigs raised in these countries are not the free-range, diseasefree, carefully tended and lovingly reared animals these activists regularly demand from New Zealand pig farmers. Free trade is well and good when the playing field is level, but I have the feeling that in this case it is not. Now where is that swine Winston when you really need him?

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Rural News // june 5, 2012

42 opinion Claims are nothing but hot air THE ARTICLE on extreme weather presented at a seminar by PA Hanford and Associates (page 5 Rural News May 15, 2012) is another example of the utter rubbish being promulgated around the country. Please tell me, JohnPaul Praat; what weather has become more extreme in the last 30 years? Hurricane intensity and frequency have been

declining for 20 years and are at the lowest level for 30 years. Tornadoes of the more extreme

variety show no change in frequency. Rainfall records show no change and extreme weather events in

general show no change in the last 400 years. There is also no acceleration of sea level rise. Please tell me specifically what has changed in the last 30 years and what is the source of the evidence you use to make this claim? The four hundred year record from Armagh shows no change in recent decades. In fact, extreme events were

more common during cold periods than warm periods. It is time for those pushing the global warming barrow to face reality: there has been no statistically significantly temperature rise for 17 years. How slow do you have to be not to catch on Mr Praat? Peter Foster RD1, Waikouaiti

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all richiemccawallblack: As Fonterra’s new ambassador I reckon dairy farming is like professional rugby and is a game of two halves: in the first half you pay me $150k and in the second half you pay me another $150k! #niceretirementfund henryfonterra: Welcome to the Fonterra team Richie. Now you’re on the payroll can you tell our farmers why voting yes for TAF is far better than winning the Rugby World Cup. #getthemonside damienoconnormp: I don’t want to be overly melodramatic, but the discovery of a single Queensland fruitfly means the end of the New Zealand horticulture industry as we know it! #theskyisfallingtheskyisfalling andycolemanmpi: Our new minimalist border screening policy at airports is a real winner and so minimalist that it does not even exist at some airports. #nofliesonus mikefayfarmer: The key to successfully purchasing the Crafar farms is like an America’s Cup Challenge – it’s won in the courtroom, not on the water or the open market. #whymylawyersaresorich dcarterminforprimaryindustries: It was certainly a fantastic zero Budget for the agriculture sector. Zero mentions, zero spending and zero interest! #zeroonin wmcneempi: There’s absolutely no truth to the rumour that we’ve made the local pig industry a sacrificial lamb to enhance New Zealand’s free trade reputation. We’ve actually made it a sacrificial ham! #getitright iancarternzpork: It’s impossible to argue with MPI’s logic that the local pork industry is trying to be protectionist when about half the pork consumed in NZ is imported; there’s no logic in its argument! #stupidswines simoncouperexshc: I’ve had a change of heart about this TAF (trading among farmers) scheme, as the more Fonterra don’t tell us about TAF the more I don’t like it and I quit! #iamoutofhere ianbrownshc: The last thing Fonterra needs is a shareholder watchdog with bite and that’s why under my watch this council will overwhelmingly support TAF and do whatever the Fonterra board says. #lapdogbackinthekennel

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Rural News // june 5, 2012

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SEE US AT SITE C13

Parents Room

BOAT JETTY

Police The Event Shop

SEE US AT SITE C32

DEMONSTRATION AREA LAM

B BO

M Road

GATE 7

Yardmaster Pumps SEE US AT SITE F16

PUMP HOUSE

N Road

Bank Road

SERVICES BUILDING

AG ART WEAR

73 74

60 61 62 63 64 65

109 108

77 78 75 76

THE N STATIO

79 80 81 82

U RIM RIMU MAR MARQUEEE

107 106 105

104 103 102

101 100 99 98

Rimu Street

83 84 85 86 87 88 89 90 91

SEE US AT SITES E12,E14,E16,E18

4 96 95

PEDESTRIAN

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94 93

83A

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0 11

EE THTH LOEE LO DIS BLBELDEIS

111 112

113

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117 116

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114

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FFCC1166

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19 16 18

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Fonterra Arch

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M15

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PLACEMAKERS KIWI’S BEST

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LIFESTYLE LIFESTYLE MARQUEE MARQUEE

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TANK

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E34 E32

M13

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FIELDAYS HQ

40 39 38 37 36 35 FC17

ANZ Arch

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Totara Road

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15 FIELDAYS INNOVATION CENTRE

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Rural News // june 5, 2012

46 nz national fieldays Mystery Creek, Hamilton, 13-16 June 2012

365-day business for Calder RUNNING THE National Fieldays is a 365-day business, says chief executive Jon Calder. With preparations in full swing for next week’s National Fieldays, Calder and his team will already have one eye on next year’s event. When the final Fieldays visitor has left Mystery Creek on June 16, attention will turn to 2013. Calder says preparations for this year’s Fieldays have been underway for a year and he’s confident a fun and actionpacked programme has been set up for visitors. “This is a 365-day business for us,” he told Rural News. “Our team works hard all-year around with exhibitors to create the four-day event.” Calder, on the job four months, describes the

time as “a big learning curve”. “I’ve been a fresh pair of eyes, asking a lot of questions and challenging some of the things we’ve been doing.” Sponsored by ANZ and the University of Waikato, the National Fieldays will run at the Mystery Creek Events Centre from June 13-16. This year’s theme is ‘The Changing Face of Farming’. About 900 exhibitors will this year be on the 1400 sites on offer at Mystery Creek. Organisers are targeting 120,000 visitors during the four days. A highlight of the Fieldays is its innovation centre. While no bigger than previously it will boast a new design layout. Event manager Vanessa Richmond says the innovation centre has as “interesting entrant list”.

The event will also feature long-standing competitions – tractor pulling, fencing, excavation and forestry skills. One event growing in popularity is the Ag Art Wear wearable arts competition in which designers make creative and unique garments from rural products. Richmond says the event has grown over the years and this year a night show has been organised in Hamilton to show off the entries. While the Fieldays are yet to kick off, one competition sponsored by the National Fieldays Society is drawing to a close. The No.8 Wire National Art Award began 12 months ago, challenging artists to create 3-D artwork mostly using 8-gauge wire as the sculpting medium. Richmond, who has seen some

of the entries, says the competition has again produced incredible, complex and unique designs. Entries will be displayed at the Fieldays. The competition is organised by Waikato Museum and ArtsPost Galleries. National Fieldays also promotes community involvement. This year, small rural towns around Hamilton are again taking part in the Big Little Town competition. Each year, Fieldays invites local retailers to participate in a retail arts competition, dressing their store windows to reflect the event. Richmond says working with local visitor information centres and business associations, it challenges retailers to design and create an interesting and unique window display to showcase their stock, their

Jon Calder

staff creativity and their Big Little Town spirit. This year there is also something for householders to look forward to. The Letterbox Challenge is an opportunity to design

and build an unusual and unique letterbox that reflects our families, our heritage and our connection to our country. The competition is open to residents of Cam-

bridge, Hamilton, Huntly, Matamata, Morrinsville, Ngaruawahia, Otorohanga, Pirongia, Putaruru, Raglan, Taumarunui, Te Aroha, Te Awamutu, Tirau, Tokoroa and Waitomo.

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Rural News // june 5, 2012

nz national fieldays 47

Keeping a tab on soil carbon CARBON LEVELS in Waikato dairying land are the subject of research by University of Waikato. On a Waharoa farm two machines are 20 times a second recording the amount of carbon dioxide going in and out of the soil; this will continue at the same rate for the next year. Professor Louis Schipper, Dr David Campbell, Dr Susanna Rutledge and technician Aaron Wall are behind the testing, under the aegis of the New Zealand Agricultural Greenhouse Gas Research Centre paid for by the Primary Growth Partnership. They know the amount of carbon in dairy soils has reduced in recent years but they don’t know if it is still declining or has hit a plateau. And they want to find out what management practices will best restore those carbon levels.

The team must also factor in how much carbon is going out in other ways, such as milk or feed imports, Schipper says. “There is a lot of carbon there and we are trying to measure a small change. You can’t just measure the total amount of carbon in the soil and come back a year later and measure it again.” Schipper likens the methodology to a household budget. “It’s like adding up all your bills for the year to work out how much you’ve spent but forgetting the Visa bill. You must include all the components.” The frequency of the testing, averaged out every half hour, will give them precise measurements and comprehensive data to determine how best to tackle the issue. Then comes the clever bit – one of the towers

University of Waikato technician Aaron Wall and research fellow Dr Susanna Rutledge measure data at a Waharoa dairy farm.

at the farm will have one of its farm management practices adjusted and the results compared. The first adjustment will include greater plant diversity in the pasture to determine whether that makes a difference. “There is good reason to believe this will work, but equally we might have to say that didn’t work and try something else,” Schipper says.

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THE BEST bull in the world will be on display at National Fieldays, says LIC. Although not ‘in the flesh’, Howies Checkpoint will be a key feature of the site. Marketing manager Blair Hoad says the site naturally fits the overall theme of Fieldays – ‘The changing face of farming’. “LIC is dedicated to moving with the times and leading the way through the changing face of farming with innovative solutions for our farmers that make their job easier and make their operation more productive, profitable and sustainable. “With members and customers throughout New Zealand, LIC’s products and services help them to extract the full potential from their animals and land, and the National Fieldays is a great opportunity for us to pull them all together and put them on display. “We’re encouraging all our members and customers to come see us and learn about how LIC can help them to farm smarter and easier.” Hoad says staff who live and breathe the products every day are looking forward to meeting with farmers, providing live demonstrations and talking about the product they live and breathe every day. LIC directors, customer relationship managers (CRMS) and Shareholder Council members are also attending. Also on show on the LIC site: • New tools in MINDA including land and feed, milk and young stock weights. • New reproductive solutions. • New NAIT functionality in Minda. • New Protrack drafter system with remote draft scheduling. • FarmWise consultancy. • GeneMark DNA parentage and BVD testing.

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14/05/12 1:30 PM

Rural News // june 5, 2012

48 nz national fieldays

Nursing peat lakes back to health one at a time REBECCA EIVERS, a doctorate student at The University of Waikato, wants to nurse back to health Waikato’s ailing peat lakes. Her work is on show at the uni’s Fieldays stand. Waikato peat lakes are shallow and often surrounded by intensive farming. That makes them more susceptible to sediment build-up and exacerbates problems like algal blooms caused by excessive nutrients. “They have unique environments and we need to understand what is happening. It is a lot more complex than we first thought,” Eivers says. While nutrient leaching from farms is largely responsible for the deteriorating state of the peat lakes, over time the number of wetlands in the

region has also been drastically reduced. The wetlands act as the “kidneys of the waterways”, filtering nutrients and improving water quality before the water makes its way into the lakes. However wetlands often need to cover a large area to do that job properly. So part of Eivers’ research, partly funded by WRC and DOC, involves trialling floating wetlands that sit on top of an existing water source. Alternatively a farmer could create a sediment pond, sit the wetland on top and potentially double the efficiency of nutrient filtering while also reducing the land mass required to do the job. Over the next year Eivers will be monitor-

ing the effectiveness of two floating wetlands by measuring the amount of nutrient uptake by them. But there’s more to it than that. Eivers knows that wetlands are sensitive to their surroundings and that one model does not fit all. “There is no generic formula. As the research develops I will be observing which plants work better in which environment, working out how big a floating wetland needs to be to be effective and building on that.” She is also studying the effectiveness of a biological fertiliser applied in a tailor-made programme for each area of the farm. “The approach with this fertiliser is little and often but site specific. I’m looking at what hap-

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pens when it reaches the water.” Eivers says the ideal scenario would be to reduce the amount of nutrients leaching from farms by improving management practices such as reducing the amount of time stock spend in one

Rebecca Eivers’ work will be on display at the Fieldays.

area, altering fertiliser regimes or by reducing stocking rates.

A SUMMER studying cows has given a University of Waikato student a close insight into bovine behaviour. Dushyant Parmar started working with farmer cooperative LIC in the Protrack department over summer. Now he’s something of an expert. “Newborns will follow anything,” he says. “The teenagers are a lot more rebellious and like to do things their own way in their own time. And then there’s the older cows – they’re too lazy to be bothered trying to figure things out for themselves so they’re very compliant.” Parmar, a mechanical engineering student, helped develop and test LIC’s Protrack Drafter product. He did the work as part of his degree at the uni. The gate will be on show at one of two University of Waikato stands at Fieldays. The gate works like an extra pair of hands. Cows are fitted with an electronic identification tag, and a farmer pre-programmes which animals need drafting; during milking the automatic gate takes care of the rest. Trials of the new drafter took place at four Waikato farms and on one in

Dushyant Parmar

the South Island. Parmar says the onfarm testing was invaluable. “In the field things happen you can’t anticipate. It’s where you see what’s really going on.” Upgrades have been made to the milking screen in the herringbone shed pit which instantly shows which cows have been drafted, which are due to be drafted and total draft numbers. Pop-ups also tell a farmer when a cow has reached the gate. “The user interface is a lot friendlier for farmers

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now,” Parmar says. The gates can also separate animals into three different groups, allowing for greater efficiency. A Protrack mobile app has also been developed which enables farmers to schedule drafts from the paddock. Once the farmer is in range of the wireless network on the milking shed the draft will synchronise with the drafter PC. This means drafting can be organised ahead of time, and from anywhere on farm.

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Rural News // june 5, 2012

nz national fieldays 49

Ag Art Wear attracts talent AG ART Wear is once again pulling the crowds – designer crowds that is, says the organiser of the 2012 designerclothing event National Fieldays. They report good entries in the popular competition that showcases unusual creativity and innovation using “all things rural”. Artists and designers are invited to create art for the body using only materials sourced from the farm, rural industries or the natural environment.

They compete for a prize pool of $12,000. Entries are in from locations across New Zealand and further afield. Australian entrants have also been eager to submit their designs for the annual awards. Ag Art Wear will be showcased in two daily presentations at Fieldays in the Ag

diately after the Ag Art Wear shows at noon and 3pm. The mass appeal of Ag Art Wear is also being extended off-site. For the

Art Wear Pavilion, at 11am and 2pm. The awards show will be on Friday at 2pm. For women there are special style sessions – ‘What a Woman Wants’ with stylist Lisa O’Neill, hosted by Farmers. Each session lasts about one hour, following imme-

first time, Ag Art Wear will be on show at a gala dinner event at Hamilton city on June 16. Tel. 07 834 6290 www.fieldays.co.nz/agartwear

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Rural News // june 5, 2012

50 nz national fieldays

• SITE L28-L32 • SHEEP HANDLER

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CF MOTO has new ATVs and scooters coming to 18 dealerships. In New Zealand, CF Moto ATVs, UTVs and side-by-sides are distributed by C B Norwood. The new CF Moto Z6, launched in March, is a 600cc, fuel injected side-by-side. The UTV is a utility

4x4 machine with a tipping deck, powered by a 500cc engine. The company will also shortly offer its new Z8 (an 800cc agricultural and recreational side-by-side) and the X8 (an 800cc farm ATV). CB Norwood says CF Moto is an established agricultural and pow-

ersports manufacturer renowned worldwide. The brand arrived in New Zealand in 2010 promoting “a unique and innovative ATV product,” CB Norwood says. The products themselves are no stranger to the Australasian market, CB Norwood says.

Its scooters and ATVs were rebadged prior to distribution agreements being reached in Australia and New Zealand. In 2010 the decision was made to badge and market all products under the proud and long-standing CF Moto factory name.

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ABBEY DIET feeders on Farmgard’s site will include a new 22m3 ‘flagship’ vertical-mixing model, with a self-steering tandem axle, from the Irish manufacturer. And it will show Abbey’s AP 900 Multi spreader for solid effluent, muck with straw, etc. Also on site will be Abbey slurry tankers, Berti mulchers and mowers, Celli power harrows, rotary hoes and spikes rotors, Overum ploughs, Farmgard grader blades, RZ Discs and more. The Abbey 22m3 feeder has a 20mm base

plate, Hardox steel tub and 15mm auger flighting, making it a “serious mixer,” Farmgard says. Power consumption is said to be low, and the mix consistent (96%), because of the mixer’s gradual auger flighting and precision-rolled tub. Its mixing auger chops and mixes and the machine will handle all animal feed ingredients. Roots can be chopped and mixed with other ingredients in one operation and incorporated with big-bale hay, straw and silage. The AP 900 Multi spreader has even flow of

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Rural News // june 5, 2012

52 nz national fieldays

Software merger reduces desk work FARM MANAGEMENT software firm Farmax says it will integrate its products with some of the most popular on-farm software systems in the industry. It says 65% of farmer customers surveyed told them of their frustration at software systems not integrating, says general

manager Gavin McEwen. “This means they often have to enter data twice, which keeps them at their desk longer than necessary and away from doing other jobs on farm. This is a common issue with almost every software programme farmers use today.” The company says its intended collaboration

with other software providers will enable customers to “easily share” data collected via other programmes with Farmax modelling and monitoring systems. “We urge other software providers...to follow suit,” McEwen says. “Farming software systems and tools need to

Farmax general manager Gavin McEwen.

be simple and easy to use, while maximising the benefits delivered versus the effort required to use them. The companies creating them need to work together....” “With the technologies available, Farmax believes there is no [need] to make farmers enter data twice into a software applica-

MCINTOSH SEE US AT MYSTERY CREEk SITE D75

tion.” Farmax is used in the sheep-and-beef and dairy industries for detailed scenario analysis, planning, monitoring and performance reporting. McEwen says Farmax is also working with its development partner, Rezare Systems, to look at how it can facilitate the entry of data by farmers using devices that remove them from the constraints of the desktop computer. “Devices... such as smartphones create opportunities to not only enter data but also view information relevant to decision making. That allows informed decisions to be made... in paddock or shed, saving time and allowing more proactive decision making.” says McEwen.

McEwen says the lack of integration of software has kept New Zealand farmers from adopting technology quickly. “While the uptake of computerised systems by today’s farmers is increasing, adoption is relatively slow compared to other industry sectors. The primary reason for that, we believe, is the complexity of systems plus their lack of integration with other on-farm applications. “When the effort required to learn, drive and enter data into a system exceeds the benefits farmers receive, you can’t blame them for investing their money in other tools, such as dairy shed automation.” Tel. 0800 FARMAX gavin.mcewen@farmax. co.nz

McIntosh Farm Machinery has the STRENGTH, QUALITY and PERFORMANCE farmers expect from their farm machinery. All machines are built to a standard. They are not built to be the lightest on the market, this will only reduce strength, create more repairs and mean earlier replacement. Our simple recipe of a high quality MCB build with a strong design has made McIntosh a stand out choice for decades. Choose a MCINTOSH you wont regret it.

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LITTLE-KNOWN SIP mowers and rakes a couple of years ago grabbed the attention of Webbline sales manager Glen Malcolm during his visit to Agritechnica, Germany. So impressed was he, that the company got distributor rights here and has gained confidence in the product ever since. Hay and silage bar mowers are among the highestmaintenance machines on any farm, Malcolm insists. “I don’t think many farmers or contractors would dispute that. We hear the horror stories of collisions with foreign objects during mowing or topping, and the ever-present issue of wrapping live fence strand and old balage wrap around the mowing module, damaging the bearings.” All SIP mowers have double-raced bearings and extra protection systems on their cutter bars, with heavier and harder grade steel than many other mowers available, Malcolm says. “Nearly all the initial stock we brought in has now done its first season mowing in New Zealand’s unforgiving conditions, and we have many happy clients out there.” One customer is quoted as saying the centre pivot and hydraulic float system makes the gear easy to drive. Also, grease nipples are easy to find, and hitching and unhitching are easy. Webbline’s Fieldays site will show the gear, including a cutaway of a mower bar. “We will have a cross section of most models available, including our triple mower combination.” Tel. 0800 932 254 www.webbline.co.nz

Rural News // june 5, 2012

nz national fieldays 53

Game changer for fert spread management A DIGITAL application intended to change the way farmers spread, monitor and measure fertilisers on their farm is new from Auckland IT company Sush Mobile. The developer expects the precision farming android and iPad application to save farmers time and money compared to the GPS devices usually used to track activities. Prompting the development was Brendon Cane, who last December came to Sush Mobile with the idea of

the application, not knowing how he would implement it. “I saw a gap in the farming market for an application that would save farmers time and thousands of dollars in equipment. Currently, farmers are spending up to $5000 on hardware to manage their fertiliser systems, whereas the precision farming app retails at $280 on Andriod and $499 on the iPad, so farmers will literally save thousands,” he says. The all-in-one tool may be used to

order, monitor, measure and record the activities of fertiliser spreaders, says Sush Mobile director Sulabh Sharma. He says applications are not only changing the way businesses market themselves, they are also allowing consumers to interact with them in new ways. “We don’t just create applications that look pretty, we design them to serve a business need.” www.sushmobile.co.nz/precisiontracking-ipad/

FENCING MADE EASY!

EID devices, weighers meet NAIT standards GALLAGHER PLANS to offer help to farmers needing to comply with the NAIT regulations kicking in on July 1, says key account manager Mathew Macfie. Farmers have the new regime much in mind, he says, and they will see a wide range of EID and weigh scale products that meet NAIT standards. Practical information sessions and training on the site will help ensure customers walk away confident in their use of the Gallagher weighing and EID. Says Macfie, “To ensure farmers are comfortable using the new technology we’re offering interactive displays to demonstrate how the technology works. [We’re aiming for] customer compliance and to ensure they’re competent and confident with the technology.” Gallagher will launch new NAIT-compliant software for tag reading equip-

ment, to simply, as much as possible, the collection and reporting of EID data. “Users will find this software user-friendly.” New on site, as a preview, will be an electronic tag reading product Macfie says will “take portable tag reading to a whole new level”. Due for release later this year. He says the Fieldays theme ‘Changing Face of Farming’ is a good fit because “technology is already changing how farmers do things on the farm by making it easier to collect information invaluable for farm management decisions”. Gear on display will include two new power fence products – the i Series fence energiser systems and multi-strand electric tape gate. Available in three models (M1200i, M1800i and M2800i), the i Series energisers ensure fences are constantly monitored for best performance.

Ernie earns accolades MILK BAR has been hard at work designing a new concept in milk delivery for calf rearers. The Milk Bar milk cart 125L – Ernie as it’s affectionately called – is an insulated milk cart ensuring milk is delivered at the right temperature to calves no matter the outside temperature. The milk cart fits through a standard doorway for access to all calf sheds. Safety is notable: an automatic brake applies as soon as the handle is released. With a convenient sight glass and large diameter steel rimmed wheels the milk cart is easy to use and clean. The Milk Bar milk cart is now selling in Northern Hemisphere markets. It will be on display at National Fieldays. Tel. 0800 104 119

See original and unique electric fence accessories at Fieldays Sites E15 & E17

ORIGINAL TARAGATE Multi Strand Electric Gate – original proven performer – multi strand operates with the ease of a single gate break – 2 or 4 strand or 4 x strand ‘Lifestyler’ model

Macfie says in a worldfirst, the i Series technology enables farmers to monitor up to six separate ‘zones’ of their fencing system. Each model comes with an energiser controller that enables the user to monitor the condition of the fence and performance of the energiser. This controller can be used to turn the energizer on or off, set alarm thresholds and make adjustments to the target output voltage. The ability to locate the controller away from the energiser is a major bonus, and the energisers come with a range of features that “have to be seen to be believed,” Macfie says. Optional features include a module enabling fence performance to be

monitored and controlled from anywhere with cellphone coverage. If a serious problem with a fence is detected, this notifies the farmer immediately via a text message to his mobile phone. The Gallagher multistrand electric tape gate is an all-in-one permanent electrified tape gate practical for gateways of any width. Easy to use and quick to assemble, it comes with mounting hardware and 12.5mm tape. Two variations: 2-strand, 8m for cattle; and 4-strand, 6m for sheep. Both gates come with extra clips allowing the gates to hold 40mm tape. Tape length can be adjusted to fit the gateway.

TARAPOST Reel Post Anchor – simplify your strip grazing – totally free standing single or multi reel anchor – instantly attach/detach reels – save time – front and back fence simultaneously

GEARED REEL – speed – genuine 3:1 gearing – grunty front mounted wire guide – snagless spool break won’t flop closed when running out wire/tape – unique clip-away insulhook – snaps onto fence, won’t fall off Taragate Ltd

RD2 Hamilton, New Zealand Phone 07 843 3859 Fax 07 843 3952 Email info@taragate.co.nz Web www.taragate.co.nz

www.gallagher.co.nz

HARROWS HARROWS HARROWS

Full range of harrows available with over 50 types, styles, t a s u it combinations and weights to Vis ys a ld ie F the choose from. 24 Site K

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03 347 8516 Ph 0800 HARROWS

Rural News // june 5, 2012

54 nz national fieldays

Thirty two fieldays later AFTER 32 years of attending National Fieldays, president Lloyd Downing retains his enthusiasm and ambition for the event, and hopes this year’s will be the greatest ever. He is now into his second year as president of the National Fieldays Society after being vice-

president for one year. This position is not to be confused with that of chairman of the National Agriculture Fieldays, a position he held for five years. “Way back then Lloyd Downing there was a staff of 12 and today there are 38; our total attendance was over the three days then 70,000, now we have aver-

aged for the last five years 125,000 over the four days.” Site numbers have grown fourfold and a major advance was the building of the pavilion, paid for from income. “Along with the pavil-

AgResearch scientist Dr Jim Crush checks out grain being grown for his Fieldays display.

ion there is something happening on the Fieldays site every week of the year. “We appointed a new chief executive, Jon Calder, at the beginning of the year and he is bringing new ideas and thinking to the organisation which will help us all to progress.” – Tony Hopkinson

Scientists to strut their stuff Where on Earth will you find

a better digger?

AGRESEARCH SCIENTISTS’ continuing work with ryegrass will feature prominently at Fieldays. “Continuing to improve our understanding of ryegrass and other forages is critical to AgResearch’s role of enhancing the value, productivity and profitability of New Zealand’s pastoral sector,” says research director Warren McNabb. Another key display will be the story of the ‘hidden half’. Science team leader germoplasm Dr Jim Crush says the history of forage plant breeding has been based on above ground research. Roots deliver nutrients to the plants and AgResearch scientists are interested in improving nutrient efficiency. “By doing so, less nitrogen and phosphorus is lost to waterways and that helps protect water quality. Deeper rooted plants have better access to subsoil moisture and better drought tolerance. “The take home message is that roots are vitally important, but often not considered. If we are to develop totally sustainable pasture systems we need an improved root function. “AgResearch is screening plant germplasm for traits that contribute to improved root function and starting to move into development of new ryegrass breeding lines that express these traits. Some of this underpinning research will develop new plant germplasm so that our pastures can become more productive, profitable and sustainable.” Also featuring on the stand is Farmax computer software used by sheep-and-beef and dairy industries. AgResearch scientists originally developed the technology and the organisation retains a share in the business. www.agresearch.co.nz

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THERE’S NO mystery about what will be the best value ute at the Mystery Creek National Agricultural Fieldays, says Mitsubishi. They predict the latest special-edition sport-specification Triton ChargerX will be the “value-for-money” star when Fieldays - the biggest trade show of its kind in the Southern Hemisphere - opens on June 13. The new double cab ChargerX is based on the popular GLX 4WD. However, Mitsubishi says it’s equipped to look and drive like a top-range GLS, yet at an incredible price: for the manual transmission version, $35,990 plus GST and on road costs. Mitsubishi claims this is the best value price ever seen in New Zealand for a sport specification ute equipped with electronic stability and traction control and a full set of airbags. The one-tonne-payload ChargerX produces 407 Nm of torque from its 2.5 litre turbodiesel. It has front, side and curtain airbags, ABS with electronic brakeforce distribution, and tows a 3.0 tonne braked trailer. If you can’t get to Mitsubishi’s Fieldays stand you can see the ChargerX, manual and auto, in Mitsubishi dealer showrooms from late May.

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Rural News // june 5, 2012

56 nz national fieldays

Feeding 13 years hard labour THIRTEEN YEARS operation on a specialised beef feedlot at Hawkes Bay has given a Hustler Chainless 2000 bale feeder a hearty workout, the maker says. Kato Feedlot, run by

Every day four-six round or square bales are fed out.

Satsuma Foods, supplies Wagyu beef to international markets. All stock live indoors in four sheds – a year-round operation in which 900 cattle are fed hay, grain, straw and other feeds.

Electronic Tag Reader Sale

Every day four-six round or square bales are fed out. Thirteen years down the track Satsuma bought a new Chainless 2000 and after 23,000 bales, with no maintenance and no breakdowns, the choice is seen as having been a good one, Hustler says. “The only problems we’ve had with this machine were due to human error,” says assistant manager Shiki, “Where operators have driven into the troughs or gates. As you can see, we’ve had some rough operators. “I honestly thought the plastic would have needed

to be replaced before now; we’ve cut it and hit troughs and it’s had a hard time and all it’s got is a few cuts which is amazing.” Satsuma uses the Chainless on the front of a Manitou telehandler, easier to use in the sheds without having to keep turning around to see what is happening. Parked outside all its life in the heavy frosts, the feeder has lasted well, “We’ve only just had to replace the rear chain now with no lube all its life and everything else is still going fine”. Tel. 0800 487 853 www.hustlerequipment. co.nz

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www.gallagher.co Available from your local Gallagher stockist. Offer on for a limited time only, while stocks last. All prices include GST. Savings based on Gallagher RRP’s.

Pottinger twin-rotor swather rake.

Rake takes all in its stride POTTINGER EXTRA heavy-duty twin-rotor swather rake meet the demands of high hectares and challenging conditions so often experienced in New Zealand, distributor Origin Agroup says. With the new TOP 852 and 972 C s-line, Pottinger has developed a double windrower with central swath placement that offers the contractor 7.75-8.55m working width on the 852 model and 9.0-9.8m working width on the 972 model. “Both models feature plenty of space for the swath. They have a rotor lifting system with the axle inside the arc of the rotor (steered axle), providing a real ‘jet effect’ for a ground clearance of about 600mm. “This means about 30% higher clearance than any other equipment currently available on the market,” says Origin. The rotors are lifted upwards at an angle to the rear to guarantee sufficient swath clearance at the headland. This enables harvesting machinery in the next pass to achieve higher performance because the swaths are intact and can be picked up more efficiently. Best forage quality is achieved via perfect ground hugging provided by a PTO shaft with a pivot angle of +/- 5 degrees and the maker’s proven Pottinger Multitast ground hugging front wheel. Despite the rotor diameter of 3.70m (with 13 tine arms) the transport height is below 4m, without having to remove the tine arms. The side guard pivots back hydraulically. The control system is said to offer plenty of comfort: hydraulic rake height adjustment - individually or together - as well as an option for electro-hydraulic individual rotor lifting for working with just one rotor. www.originagroup.co.nz

Rural News // june 5, 2012

nz national fieldays 57

Program puts you straight into NAIT

New tractors retain proven features MASSEY FERGUSON has added four entirely new 82-107hp models to its popular MF 5400 Series, reports Agco Australia. “These tough, versatile workhorses are designed and built to handle the most challenging tasks,” the company says. In particular, the new models suit drystock and dairying in the Nelson region, and commercial growers. Design and operating features are “truly innovative”, providing the power, performance and economy operators in this sector require. They are not simply updates to existing models, stresses Shane Snijders, general marketing manager. “These new MF 5400 tractors reinforce Massey Ferguson’s position in our most popular sector…. [They have] superb power-to-weight ratios, excellent visibility and novel features that make them ideal for loader work. “We have [utilised] successful features – such as the Dyna-4 transmission – and re-engineered them to suit precisely the specific customer requirements for this

size and type of tractor. This [ensures] manoeuvrability, stability, visibility and access linked to lively, agile performance in a yard, or on road or field.” Features include: • Latest Perkins 4.4L, 4-cylinder, 1104D44T mechanical injection engine with high visibility bonnet and “no compromise cooling”. • New transaxle specifically developed for these tractors, featuring optimised and flexible Dyna-4 transmission perfected for sub-110hp tractors. • Unique front axle support housing. • Optional 1.8t integrated front linkage system. • New rear axle, designed for these tractors. • Rear linkage optimised for tractor size with electronic linkage control. • High performance front axle. • Electro-hydraulic PTO speed selection with 540/540E/1000 speeds. • Spacious cab with suspension option.

CRV AMBREED’S new web-based herd recording program InsightWeb is notable for its ability to forward relevant information directly to NAIT, says the company, an accredited NAIT information provider. This means farmers using Insight Web can meet their NAIT obligations without double entering data. The company says it offers a convenient ‘portal’ for farmers’ entry to the NAIT scheme on July 1. The process it offers: Register for a NAIT number through www. nait.co.nz or phone 0800 624 843. Alternatively visit CRV Ambreed or

CRV Ambreed’s new web-based herd recording programme.

NAIT at National Fieldays for help to register. Select CRV Ambreed as NAIT information provider. Ensure all animals are listed in CRV Insight-Web, Insight-Paper or MISTRO Farm 5.

EID tag animals moving off-farm and assign the EID numbers to records. Record all movements with CRV Ambreed within 48hours of the movement occurring. Says the company,

“With [at least] 30% of CRV herd recording clients choosing to use CRV Insight-Web it is clear [the program is easy to use] to keep on top of NAIT obligations,” says product manager Angela Ryan. www.crv4all.co.nz

BERENDS IMPLEMENTS BERENDSFARMERS IMPLEMENTS SERVICING SINCE 1966

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Contact: David Gock. 0274528 294 A/H 09 262 0404 Contact: David Gock. Gock.www.johnberendsimplements.com.au 0274528 294 294 A/H A/H 09 09 262 262 0404 0404 davidgock@xtra.co.nz Contact: David 0274528 davidgock@xtra.co.nz www.johnberendsimplements.com.au www.johnberendsimplements.com.au davidgock@xtra.co.nz

Rural News // june 5, 2012

58 nz national fieldays Mower uses lower power THE BIGGEST advantage of the Lely Splendino 550P trailed mowers is their lower power demand. “With bigger mounted mowers, a lot of the power is used just to carry the mowers let alone operate them,” says North Island area manager Andrew Saes. Many contractors and farmers have lower-pow-

Lely Splendino 550P

ered tractors for operating rakes and tedders, and those tractors suit the Lely mowers. The maker suggests a minimum of 90hp depending on contours. Working width is 5.5m, leaving a swathe 4.9m wide. The mower can work left or right of the tractor. A choice of four height adjustments gets the ideal

S E N I H C A M T U O D E FE S R E D A E R P S D E L I A TR PLY SUPERIOR

NEW FEED PAD KIT ON DISPLAY AT MYSTERY CREEK!

SIM

COMBY, SUPER COMBY, SUPER COMBY EX, MEGA COMBY

Comby Range • From 4m3 to 20m3. • Feeds pit silage, maize silage round and square bales and grain. • New feed pad kit option. • Unique optional load cell weighing system.

Row Crop Spreader • Stainless steel bin • 700mm wide conveyor • 3 speed gearbox • Optional load cells and Twin floor • Optional electronic auto steer

514LK Spreader • Stainless steel bin • 500mm wide conveyor • 3 speed gearbox • 1.4 tonne cappacity • Ground drive conveyor

SEE US AT FIE LDAYS SITE A6 9 For your catalogue of all our products please contact

Don 027 433 2212 or Danny 027 443 4777

PO Box 6 Hinds, Mid Canterbury • Phone 03 303 7228 • www.robfarm.co.nz

mowing height. It can be steered with controls from the tractor so gateways and races are not a problem and it narrows to 2.6m for travelling. The two cutter bars are centrally suspended and can move independent of each other giving perfect

contour following and the mower can be raised as a whole to give crop clearance at headlands. Says Saes, “According to recent Profi tests our mowers give maximum output with minimum energy requirements.” Tel. 021 392 472 www.lely.co.nz

Feed pad kit new on comby FEEDOUT GEAR specialist Robertson Manufacturing has developed a new feed pad kit for its Comby range of machines. The company says feedback at last year’s National Fieldays was “taken back to the round table”. “And we have come up with this new option available on new machines or it can be fitted to any Comby range machine post 2001.” This option replaces the tray below the elevator and eliminates the possibility of any spillage on feed pads by extending the elevator in underneath the cross floor. The company also announces a new Mega Comby in its range. Designed as “the best of the best”, it has “massive 20m3 plus capacity and is capable of the biggest jobs.” “It comes with the feed pad kit and tilting elevator as standard and it is load cell-ready, so if you don’t choose the option of load cells now, you can fit them later with ease. “The new Mega – in common with all our Comby range – is a versatile multi feeder capable of feeding round and square bales (straw or silage), pit silage and maize. It also has optional grain feeder and causmag spreader.” The range of machines is said to feed almost anything and is the “perfect multi-feeder with a size and options to suit any farmer’s needs.” www.robfarm.co.nz

Hot post tames stock IMPROVEMENTS TO the Strainrite (Robertson Engineering) Hot Post give even better control of livestock, says general manager Brian Collins. “We’re continuously looking for opportunities to improve products and processes.” And requests from the field needed to be incorporated into the Hot Post design. Hence the new (2012) model. Collins says feedback from farmers indicates stock get used to standard pigtail posts not causing any discomfort when touched. Some cattle have learnt to push standard pigtails over to get to fresh grazing. The Hot Post shaft (galvanised spring steel) becomes electrified when installed with electric fence tape or polywire. The shaft is insulated from the ground by the insulated foot component. The new version’s features include better injection moulding, a foot that makes easier work of placing the post in hard ground, and a wedge shape to stop it from working its way out of the soil in windy conditions. Users will notice “far superior” insulation performance on the new Hot Post, Collins says, ideal for the high energy outputs of larger energisers. www.strainrite.co.nz

Rural News // june 5, 2012

nz national fieldays 59 VETMARKER

Irish to turn out in force THE IRISH will turn out in force at Fieldays in a farm machinery trade delegation organised by Enterprise Ireland. For 30 years Ireland has developed this business now successful at home and abroad, the group says. Now this sector of Irish engineering generates exports of $213 million. Several Irish agribusiness companies are said to be world leaders in their specialised fields. “Products on offer are diverse and include grass balers, feed systems, dairy equipment and machin-

Dock your lambs the easy way with the AWARD WINNING VETMARKER.

Winner of National Fieldays Break thru Prototype and Sheepvention Australia Animal Handling Equipment. See us at Site G40

NEW MODEL

Abbey Machinery is one of Ireland’s largest agricultural equipment manufacturer.

ery accessories. “Recent product diversification has centred on developing products that help to create a ‘green’ image in food production. “Irish agricultural machinery tends to be more rugged and built to a higher specification than machinery from some other countries due to the poor quality of Irish

land; as a result the products tend to be superior on high quality land in other countries.” New Zealand and Ireland share many similarities: a strong historical connection and collective social, political and cultural values, Enterprise Ireland says. “No wonder many Irish businesses continue to succeed and

flourish in the New Zealand marketplace. The agribusiness sector is a key contributor to this growth and is reflected in the well-developed and innovative agricultural sectors in both countries.” Enterprise Ireland works with Irish companies to help them develop and compete so they can grow in world markets.

The Benefits are: • Less stress on lamb • Easy to load • Automatically sprays for fly strike on release • Lambs are released onto their feet • Height adjustable • Straight rollers help prevent legs getting stuck • Self locking on yard rail • 2 Year Warranty

• Vaccination • Earmarking and tagging • Castration • Drenching • Fly strike application and Tail removal

Also available patented Automatic Spray Unit attachment to fit existing docking chutes

FREEPHONE 0800 DOCKER 0800 362 537 www.vetmarker.co.nz

Soil Aeration Specialists Are you suffering from:

• Hay and silage being trampled into pasture and wasted? • Surface ponding of pastures?

PUGGED PADD OCKS CAN REDUCE PASTURE GRO WTH UP TO 60%!

More clever spreader METALFORM IS about to impress again, with the new large Tow and Fert prototype having its first outing at National Fieldays. Metalform says it has for several years worked hard to unveil the ‘big brother’ of the Tow and Fert Multi 800. Now with ‘breakthrough’ technology this unit will cover up to 40ha/load. It will cater for larger farms and contractors needing to cover greater areas without refilling. The Tow and Fert’s multiple-role ability means the operator can save money in fertiliser product, application costs, timely application of animal health trace elements,

application of herbicides (thistle, dock spray etc) while simultaneously applying lime, urea etc. The concept of liquid fertiliser and liquid suspended fine particle fertiliser in folia applications is gaining awareness and popularity, the company says. The Tow and Fert Multi 800 machine has success stories from 100 % of its customers so far. “The next generation of fertiliser mixing and application is going to be even more impressive again.” Tel. 0508 747 040 www.towandfarm.com

A touch of Olympics A LONDON double-decker bus will bring a foretaste of the British Olympic Games to Fieldays, and then to New Zealand towns and cities. Fieldays strategic partner ANZ has signed with the New Zealand Olympic Committee for three years to sponsor New Zealand’s Olympic and Commonwealth Games teams, including our team at the London 2012 Olympic Games. The bus will begin its nationwide tour at Fieldays. ANZ says the bus has interactive games and activities. For example, guests can jump aboard a rowing or cycling machine to test their sporting prowess against New Zealand’s best, or send photos and messages of support to our athletes, straight from the bus. The bus will be parked outside the ANZ main building next to the Village Green.

Aerators

Pre-Rippers

Heavy Duty Auto Reset

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DON’T PUT GOOD FERTILISERS ON COMPACTED SOIL WHICH CAN’T ABSORB IT If your soil can’t support 15cm root growth and good worm population check for compaction, you could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover? YOUR GREATEST ASSET IS THE SOIL YOU FARM - DON’T DESTROY IT!

BALEAGE TIPPER

SUBSOILER

Transports and stands wrapped round bales on end for storage Now available as a single or dual unit • Suitable for medium HP tractors • 3PL mounted (no front axle stress) • Bale tipped in one easy movement • No need to reposition bale before tipping

For ripping deep pans and laying alkathene pipe up to 50mm • Optional chute • Standard & heavy models

See us at SITE F57

Maitland RD5, Gore Ph/Fax: 03-207 1837 Mobile: 027-628 5695 www.jamesengineering.co.nz

Rural News // june 5, 2012

60 nz national fieldays

Farmers shift gears on EID Farmers’ perception on NAIT and EID is changing.

FARMERS ARE now buying livestock electronic ID equipment (EID) “for value, rather than for [NAIT] compliance,” says EID maker Tru-Test Group. The company has noticed a change in farmers’ perceptions of this technology in the past

year, says sales and marketing manager Verne Atmore. “Farmers are now well aware NAIT does not equal EID; [instead] NAIT means identification and tags, with the option of adding EID. “EID-based animal tracking, weighing and

site C32

(corner of Bank Road and C Street)

Tow and Fert

Multi 800

Mix and apply any dissolved fertiliser and slurry Work smarter with the Tow and Fert Multi 800 and apply what you need, when you need it. React faster with animal health trace elements. Combine herbicides with your fertiliser application to save time and money. Fill the Tow and Fert from a creek or dam using the on-board suction hose

- Mix and apply animal health trace elements - Mix and apply ﬁne particle fertiliser - Mix and apply dissolved fertiliser - Mix and apply soil conditioners - Up to 20 metres swath - Fully remote control spray and boom operation - On-board scales for accurate ﬁlling/operation Tow the Multi 800 with a 4WD ute to free up your tractor

Tow and Fert NEW!

Multi 4000

LARGE SCALE FARMERS / CONTRACTORS Look what we have developed for you!

Come and visit us at the Fieldays at site C32 and check out the protoype of the Multi 4000 on display. We welcome your comments and feedback, so come and talk to the 4000 litres | cover up to 40 hectares designers and tell us what you think! onboard crane for loading | PTO driven

Proudly manufactured by: Metalform (Dannevirke) Ltd, Easton Street, Dannevirke 4930, New Zealand Ph: 06 374 7043 | Fax: 06 374 9316 | Web: www.towandfarm.com

recording represents the biggest change to many livestock farmers’ farming systems in years. We’ve had huge interest at the regional field days, and we expect the national event to be no different.” Atmore says the main interest at last year’s National Fieldays was from farmers interested in learning about the gear and developing an understanding of their options, with the NAIT scheme then due for launch late last year. But many farmers have moved on. “EID is being taken up by farmers who are thinking differently about how they grow meat or manage their herds and replacement stock by removing guesswork and focusing on objective data. “They’re using EID and recording and tracking technology for management decision-making to grow animals more quickly with the right characteristics at the right time for more profitability from each blade of grass.” Tru-Test will extend “some fantastic Fieldaysonly offers on EID weighing systems”. Atmore says the launch and growth of interest in FarmIQ, which will have a presence on Tru-Test Group stand, has added to the interest in EID. Auto-drafting specialists Prattley Industries will

also be on the Tru-Test Group site. “The combination of Tru-Test, Prattley and FarmIQ will give farmers a complete view of data recording (e.g. weight, drench), auto drafting by multiple criteria and farm information in a web-based decision support tool. Tru-Test will showing its new entry-level EID EziWeigh7 weigh scale (superceding the EziWeigh6). New features include Bluetooth wireless interface for the XRS EID stick reader, more storage capacity (100 sessions, 15,000 records), and calculation and display of daily weight gain since an animal’s last weight session The system maximises the potential of weight data with EID and VID (electronic and visual identification) using TruTest’s Superdamp III technology to give “the world’s fastest, most accurate, live animal weighing even with the liveliest animals”. The information is relayed over the largest weight display available, a high-contrast display visible in the brightest daylight and an LED backlight for visibility in failing light or dark sheds. USB compatible, the EziWeigh7 plugs directly into PCs or laptops and has RS232 compatibility with the XRP EID panel reader.

Taking a stand for good sorts LAST YEAR Stafix (Tru-Test) helped three rural rugby clubs renovate their clubrooms and grandstands. They called it ‘Take a Stand’. This year the company is taking a stand “for those good sorts who go the extra mile in rural schools”. ‘Take a Stand for Good Sorts in Rural Schools’ is a chance to identify and celebrate those who beaver away in rural schools, often behind the scenes and beyond the call of duty. “We were encouraged by the success of ‘Take a Stand’ last year and this is a way of further supporting the rural community,” marketing manager Shaun Owen says. “Rural New Zealand works on a ‘rolling up your sleeves’ attitude and this is our opportunity to recognise the special people who do this day in, day out.” Stafix is seeking nominations for good sorts who work in rural schools. They’ll then select the five most deserving good sorts, and their school will win $3,000 to put towards an exciting project. The nomination period runs from 28 May – 15 June. Winners will be announced on Jamie McKay’s Farming Show on Radio Sport 18-22 June. www.stafix.com

Rural News // june 5, 2012

nz national fieldays 61

Check hooves before flying away THE END of the season is a good time for hoof trimming maintenance. Hoof trimming does not stop laminitis but it does help to minimise the effects of laminitis. Trimming the cows at this time of the year means that they will have well-shaped feet by the time they calf, and therefore suffer less from calving-induced laminitis. Remember that if

the weight is distributed evenly over the claw then it is less likely for the outer claw to pack up due to the combination of overload and being sick. It is a bit like having a trailer with two really old tyres. When you load such a trailer, but put the entire load on one side of the trailer, then the tyre on the loaded side is much more likely to burst than the

tyre on the other side. If you spread the load evenly over both tyres then you are less likely to end up with a flat tyre. It may still happen but it is less likely. In the same way, if you spread the weight of the cow over the two claws, rather than letting the outer claw do most of the work, you are less likely to end up with a lame cow. The reason the outer claw

usually does most of the work is because it tends to grow bigger than the inner claw. This is why cows usually go lame on the outer claw. If you trim the outer claw back to the same height as the inner claw then you are spreading the weight evenly over the two claws. It sounds like a very simple and easy process, but it actually takes a

Claws should be trimmed to same height so that weight is spread evenly over the two claws.

skilled hoof trimmer to get the balance right. Successful hoof trimming requires professional training and correct equipment. Veehof uses a specifically deisgned WOPA

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the ideal position to help you with hoof trimming knowledge, training, process and equipment. See us at Fieldays, visit our website www.veehof.co.nz or contact us on 0800 833463 to find out more.

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opment manager Richard Jamieson. It has a leading scalloped disc followed by a plain disc which opens the seeding slot. Says Jamieson, “The disc assembly bearings and disc angle come from the Duncan Enviro 3000e. Disc spacing is 125mm – the popular spacing used on the Duncan 24 and 28 run Mk4 Renovators and Duncan Enviro 3000e drills.” A press wheel for soil and seed compaction is an option and the transport wheels control sowing depth. The discs fore and aft of the transport wheels provide the contouring. The company trialled the unit in Australia and foresaw New Zealand application. “It’s a drill that takes farmers into the disc arena in a cost effective way.” South Australia farmer BOX TIPPERS 1250kg-1500kg capacity, rotates 150˚ Priced from:

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Rural News // june 5, 2012

Market Snapshot

Lamb Market Trends

Meat North Island

South Island

Lamb Prices

Beef Market Trends

Beef Prices Change

Last Week

2 Wks Ago

Last Year

Change

Last Week

2 Wks Ago

Last Year

P2 Steer - 300kg

4.00

3.95

4.50

M2 Bull - 300kg

4.10

4.03

4.50

3.12

3.05

3.85

Change c/kg

Last Week

Change c/kg

Last Week

n/c

5.46

7.21

Lamb - PM 16.0kg

n/c

5.48

n/c

5.53

PM - 16.0kg

n/c

5.48

7.23

Steer - P2 300kg

4.00

-5

3.67

PX - 19.0kg

n/c

5.50

7.25

P2 Cow - 230kg

Bull - M2 300kg

4.10

n/c

3.80

PH - 22.0kg

n/c

5.51

7.26

M Cow - 200kg

2.97

2.90

3.75

n/c

3.20

4.55

Local Trade - 230kg

4.02

3.95

4.50

Venison - AP 60kg

n/c

MX1 - 21kg

7.10

-5

7.15

c/kgCWT

c/kgCWT NI Lamb

YM - 13.5kg

Mutton SI Lamb

Mutton

n/c

5.53

7.01

-5

3.67

3.72

4.20

n/c

5.53

7.03

M2 Bull - 300kg

n/c

3.80

4.20

PX - 19.0kg

n/c

5.53

7.05

P2 Cow - 230kg

n/c

2.80

3.40

PH - 22.0kg

n/c

5.53

7.06

M Cow - 200kg

n/c

2.70

3.30

n/c

3.13

4.20

Local Trade - 230kg

n/c

3.85

4.20

MX1 -

$6.5

NZ Slaughter

$5.5

1000s 5yr Ave Last Year This Year

$4.5 $3.5 Mar

Apr

May

Jun

Jul

Aug

21kg

Change

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

139

197

Cattle NI

-2%

46.9

47.7

50.5

47.8

321

218

279

Cattle SI

+17%

25.7

21.9

25.4

21.3

Lamb NZ

-7%

494

531

357

477

Cattle NZ

+4%

72.6

69.6

75.9

69.1

Mutton NZ

-8%

Bull NI

-15%

5.6

6.6

5.2

6.9

Bull SI

+13%

1.8

1.6

2.1

1.9

Str & Hfr NI

+2%

14.4

14.1

15.9

15.3

Str & Hfr SI

-13%

6.2

7.1

6.8

7.2

Cows NI

-0%

26.9

27.0

29.4

25.6

Cows SI

+34%

17.7

13.2

16.5

12.2

NZ Weekly Lamb Kill Last Year This Year

150

5yr Ave Last Year This Year

NZ Weekly Beef Kill 80

0 Feb

Mar

Apr

May

Jun

Jul

Aug

Change

North Island 300kg Bull Price

$4.5 $4.0 5yr Ave Last Year This Year

$3.0 Mar

Apr

May

Jun

Jul

2 Wks Ago

Last Year

5yr Ave

1.68

2.54

1.69

NZ$/kg

n/c

7.70

11.25

8.82

20 0 Feb

Mar

Apr

May

Jun

Jul

Export Market Demand

Demand Indicator - UK Leg Price

Last Week

2 Wks Ago

Last Year

5yr Ave

n/c

2.11

1.95

1.61

6.17

6.14

5.26

4.89

Change 95CL US$/lb

£2.10

NZ$/kg

Last Year

Aug

Demand Indicator - US 95CL Beef

This Year

£1.60 Mar

South Island 300kg Steer Price

$5.0

Last Week

n/c

£2.60

This Year

£/lb

UK Leg

Last Year

Export Market Demand

$3.5

5yr Ave

210

300

$5.0

Last Year

293

450

Jul

3 Wks Ago

200

$5.5

Jun

2Wks Ago

-9%

600

May

Change

-4%

$6.5

Apr

1000s

Estimated Weekly Kill

Lamb SI

750

Mar

P2 Steer - 300kg

Lamb NI

$7.5

$3.5

NZ Slaughter

Estimated Weekly Kill

South Island 16.0kg M Lamb Price

$4.5

PM - 16.0kg

YM - 13.5kg

North Island 16.0kg M Lamb Price $7.5

c/kgCWT

Apr

May

Jun

Jul

Aug

Last Year

$2.20

This Year $4.5

Procurement Indicator Change

$4.0 $3.5 5yr Ave Apr

May

Last Year Jun

3 Wks Ago

Last Year

5yr Ave

% Returned NI

+1%

72.7%

72.1%

64.4%

36.6%

% Returned SI

72.1%

63.1%

55.4%

This Year

$3.0 Mar

$2.00

2Wks Ago

Jul

90%

Aug

Change

70%

May

Jun

Jul

Aug

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI

+1%

65.3%

64.3%

85.60%

74.9%

% Returned SI

-0%

61.6%

61.9%

79.9%

67.6%

Last Year

60%

$8.0

Apr

Procurement Indicator

Procurement Indicator - North I.

80%

North Island 60kg Stag Price

$1.80 Mar

This Year

50% Mar

May

90%

Procurement Indicator - North I.

Jul 80%

$7.0 5yr Ave Last Year This Year

85%

$6.0 Mar

Apr

May

Jun

Jul

Procurement Indicator - South I.

70% 60% Mar

75%

Aug

Last Year This Year May

Jul

65%

South Island 60kg Stag Price

Last Year

55%

$8.5

This Year

45% Mar

May

90%

Procurement Indicator - South I.

Jul 80%

$7.5 5yr Ave Last Year This Year

$6.5 Mar

Apr

May

Jun

Jul

Aug

Venison Prices Change

70%

Last Week

2 Wks Ago

Last Year

5yr Ave

NI Stag - 60kg

n/c

7.10

7.95

6.90

SI Stag - 60kg

-5

7.15

7.20

8.00

7.20

60% Mar

Last Year This Year May

Jul

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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Beef Wool Price Watch Tide turning for North Island beef prices Slaughter prices for cattle in the North Island moved upwards last week as meat companies up the ante to secure more supply while they still have capacity on. Prices for 300kg bull firmed to $4.10/kg on average while steers picked back up to around $4.00/kg. With kill numbers heading south after the peak dairy cow kill was reached earlier in the month and the NZ dollar hovering around US75c, there has been some more motivation to keep the cattle coming forward for slaughter. In the South Island export cattle prices were mixed last week. While most prices held and there have been one or two premiums floating back it unfortunately didnâ&#x20AC;&#x2122;t spread to prime steer with 300kg cwt prices coming under further pressure, easing back to average $3.67/kg. The money for cow is variable but most are still sitting around the $2.70-$2.80/kg mark. Cows have taken up most of the space at South Island plants in the last week or so, but that could change in the coming weeks as many are speculating they have just about done their dash. Beef exports limited by lack of cattle A tighter flow of beef into our processing plants stifled exports in April. Last months total of 39,500 tonnes fell 4000t short of April 2011 levels but were on par with March volumes. Strong prices saw New Zealand exporters focus on the US with exports up by 12% on March to 19,500t. Trading with Japan improved as exports posted a 19% year-on-year lift to 3500t. Exports to Korea dropped by 34% on a year ago as NZ exporters struggle to make headway due to sluggish demand and an increasing US presence.

Lamb

Dairy Price Watch

Indicators in NZ$

24-May

Change

Last Year

17-May

Indicators in NZ$/T

Last 2 Wks

Change

Prev. 2 Wks

Last Year

Coarse Xbred Indic.

+17

4.53

4.36

6.21

Butter

-100

3980

4081

5869

Fine Xbred Indicator

5.35

5.27

6.54

Skim Milk Powder

+63

3682

3618

4723

Lamb Indicator

5.08

5.05

6.03

Whole Milk Powder

-40

3881

3921

5013

9.40

10.53

+122

4776

4654

5594

Mid Micron Indic.

750 700 650 600 550 500 450 400 May

Cheddar

Wool Indicator Trends

SMP But.

5,500

WMP Ched.

4,500 CXI

FXI

Jul

Sep

LI Nov

Jan

3,500 May

Mar

Coarse Xbred Indicator

700

Dairy Prices Trends

6,500

Jul

Sep

Nov

Jan

Mar

Whole Milk Powder Price (NZ$)

6,500

Last Year 600

This Year

5,500

500

4,500

Last Year This Year

400 Mar

Apr

May

Jun

3,500 Mar

Jul

Aug

Indicators in US$/T

Overseas Price Indicators Indicators in US$/kg

Apr

May

Jun

Jul

Aug

Overseas Price Indicators

Change

24-May

17-May

Last Year

Change

Last 2 Wks

Prev. 2 Wks

Last Year

Coarse Xbred Indicator

3.40

3.33

4.93

Butter

-200

3000

3200

4800

Fine Xbred Indicator

-1

4.02

4.03

5.18

Skim Milk Powder

-63

2775

2838

3863

Lamb Indicator

-4

3.82

3.86

4.78

Whole Milk Powder

-150

2925

3075

4100

Mid Micron Indicator

7.06

8.35

Cheddar

-50

3600

3650

4575

Lamb prices steady for now Wool Indicator in US$ 600 Lamb kill numbers in the North Island have yet to show 550 any sustained drop in numbers. The lamb kill is still just 500 higher than normal and meat company margins remain 450 under pressure with the main overseas markets still 400 lacklustre. This is keeping the pressure on prices and 350 CXI FXI LI preventing any upside. As a result export lamb prices held 300 Jun Aug Oct Dec Feb at $5.48/kg (net) last week. Meat Companies may well be prepared to reduce capacity rather than chase harder for Coarse Xbred Indictor in US$ lamb in the short term. In the South Island lamb prices 550 were generally holding last week at $5.53/kg (net), but 500 there is growing optimism from some corners that a lift in 450 prices could be on the cards in the coming weeks. Meat 400 companies are closing further plants as slaughter 350 numbers fall and others remain on restricted capacity. 300 This may further support a firmer outlook if some Mar Apr May Jun Jul companies choose to chase a bit harder in the coming weeks. Currency Watch North Island mutton kill coming to life Last The onset of winter is proving the catalyst for those still holding onto vs. NZ Dollar Week extra ewes. The North Island mutton kill has stepped up a gear with US dollar 0.754 weekly kill rates pushing as high as 20,000 head in recent weeks, well up Euro 0.601 on the 9000 this time last year. In contrast the South Island mutton kill UK pound 0.481 continues to stutter. Since mid February, weekly slaughter rates have Aus dollar 0.772 fallen to below average levels. It is common knowledge that many ewes Japan yen 59.97 were held back to help clean up rough feed but even as the cooler temperatures start to bite, the ewes are failing to show up. The weekly Euro South Island mutton kill is tracking at 20,000 head which is 25,000 head below five-year average levels for this time of the season. 0.61

Wool Wool prices needing a revival in overseas demand The weaker position of the kiwi dollar is helping wool prices as the season starts to draw to a close. There have been some firmer prices in recent weeks, but any upside is still limited due to overall softer overseas demand. Compared to this time last year, prices remain significantly lower.

Dairy Prices in US$/Tonne

2,500 May

Apr

Sep

Nov

Jan

Mar

4,300 3,800 Last Year

Last Year

3,300

This Year

2,800 Mar

Aug

2 Wks Ago

4 Wks Ago

Last Year

0.758

0.814

0.818

0.598

0.616

0.574

0.481

0.503

0.498

0.771

0.784

0.764

60.19

66.07

66.19

This Year Apr

May

Jun

Jul

Aug

US Dollar 0.85 0.80 Last Year This Year

0.75 0.70 Mar

Apr

May

Jun

Jul

Aug

UK Pound 0.53

This Year

0.51 May

Jul

Whole Milk Powder Price in US$/T

4,800

Last Year

Apr

WMP Ched.

3,500

0.56

Mar

SMP But.

4,500

Jun

Jul

Aug

0.48 0.43 Mar

Last Year This Year Apr

May

Jun

Jul

Aug

Get weekly market updates online now www.ruralnewsgroup.co.nz/markets

Rural News // june 5, 2012

64 management

Ahuwhenua winner

The North Island’s East Coast is serious hill country which has attracted large forestry operations, but as Rural News reporter Peter Burke discovers, for some, good farm management is driving outstanding gains in sheep and beef THREE YEARS ago Whangara Farms won the Ahuwhenua Trophy for the best Maori sheep and beef farm in New Zealand. Like most Maori farms, it is big – but by no means the biggest. At 7,100ha it carries 70,000 stock units, made up of 35,000 Coopworth/Romney ewes and 6000 cattle including 1,600 Angus breeding

cows. The farms are situated on SH35 about 30 minutes north of Gisborne and up the Ruakituri Valley north west of Wairoa. From the large and distinctive woolshed beside the highway you get beautiful views of the Pacific Ocean and to the west, serious hill country. It’s an attractive and beautiful property, and

one that in the matter of just a few years has almost doubled its production. The business is a partnership of two Maori Incorporations, Whangara B5 and Pakarae A, with 1500 shareholders between them. The two trusts amalgamated about seven years ago with the new name, Whangara Farms, chosen recently for

simplicity and to leave the door open for other Maori Trusts to join. Both trusts are represented on the board, but what’s unique is they also appoint two independent directors. Currently these are BLNZ Chairman Mike Petersen and former Landcorp chief executive Bernard Card. Fifteen staff are employed on the farm.

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Whangara Farms’ chief executive Richard Scholefield.

weighed.” Lambing was just on 100%, with big 70-80kg sheep. Facial eczema and fertility were the main limiting factors so new genetics were introduced and management improved. “When I came here, the farm was producing 18,000 lambs. Last year we had 36,000. The lambing percentage is now 135% and we have a target of 140%.” Until now the focus has been on getting the ewe flock up to scratch but this autumn, for the first time, 7000 hoggets were put to the rams too. “Hogget mating is a two fold thing. Firstly to increase production and secondly to get a more productive ewe.” But it’s not all about lambs, he adds. There’s

still a focus on wool production with a clip of 180,000kg/year. When he arrived on the farm, cattle were being finished after three winters. Now all trade cattle are finished after one winter. As on most East Coast farms cattle ‘groom’ pastures for ewes and lambs but the 500 Angus cows in the A herd still manage 90% calving. Angus cows go to an Angus bull and from these calves replacements are selected. “We only keep black replacements. Although we have some crossbred cows, we are moving out of them. We heifer mate and for a heifer to make it through to the cow herd they have to have a live calf as a heifer, and then get back in calf as a 3-year-old and be Angus.”

Rural News // june 5, 2012

management 65

revisited Apart from excellent management, the dramatic lift in production is thanks to $3 million invested over the past six years. At the top of Scholefield’s priority list is fertiliser. Even when prices were high it was still applied and this season about 1,200t of sulphur superphosphate and 850t of lime has been applied. Urea is also used at key times to lift pasture growth, but the big focus at present is liming to lift pH. Meanwhile an aggressive pasture renewal programme is being pursued. “Each year we are sowing up to 200ha into various new grasses.” Over the past six years, 160ha/year has gone into summer crops for lambs then back into grass in the autumn. “As well we’ve been leasing out 40ha’s for a cash crop, which is also turned back into grass. We are also trying to improve our steeper coastal hill country by spraying out and then sowing, with a helicopter, a mix of plantain and clover. We may look at lucerne in the future.” Erosion is an issue and up to 500 poplar poles are going in annually, in keeping with one of the farm’s core values: sustainability. Where practical, they are fencing waterways and swamplands and riparian planting. One of the biggest developments, undertaken shortly after Scholefield arrived, was reticulating water to all paddocks. It cost $1.8m but without it stock were reliant

on access to dams and creeks, which limited grazing efficiency and created problems, particularly in summer when temperatures can reach 40 deg C and norwesters induce drought in a matter of days. “In 2007 there was 1000ha we couldn’t graze because all the dams had dried up and there was no water. We had to pull stock out of dams and it even got to the stage that we had to just open the gates to let the stock find what water they could. To increase the production we needed to address the stock water.” Water is now pumped from rivers and a lake on the farms to header tanks, then gravity fed to troughs. He says it’s hard to put an actual dollar return on the system, but notes other farms have followed suit over the last few years. “It’s been a great investment, good water is essential for stock performance.” Scholefield says today, Whangara Farms is at something of a crossroads. Much has been achieved including winning the Ahuwhenua Trophy in 2009. Judges for that noted growth of the business in a very short time; unique governance structure; clear vision; commitment to development; productivity achievements. Whangara Farms ticked all the boxes then and the impetus to make further gains remains strong. “We’ve done the initial development with infrastructure, fences, lane-

ways, water and housing. We’re now looking at what our next priorities might be. This might be drainage of our flats to increase the utilisation and productivity of these areas. “We’re also looking at what we can do with what we are producing.

With an annual clip of 180t, wool is still a focus.

For example we are probably not killing our lambs at optimum and in a dry

summer we have to sell lambs store.” Creating an inter-

nal lamb finishing unit or acquiring a specialised finishing property is being

considered. “Personally, that’s what I think we need to do.”

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Rural News // june 5, 2012

66 management

Dairy path to sheep and beef A rewarding spell dairy farming provided the platform to move into sheep and beef farming for Mathew and Gemma Barham, winners of the 2012 Silver Fern Farms Hawkes Bay Farmer of the Year award. Vivienne Haldane reports. Both are from farming backgrounds and opted for tertiary study before going into the farming industry; Mathew has a Bachelor of Applied Science/Valuation Farm Management and Gemma a Bachelor of Commerce in Accounting. They project managed the conversion of three properties to dairy in the Bay of Plenty, at the same time as holding share-milking contracts. With the sale and purchase of three other farms, they built their equity to the point where in 2006 they were able to pay cash for a third share in Mangatarata Station in central Hawke’s Bay, with Barham’s parents, Mike and Erica, owning the balance. They credit much of their success to solid partnerships 1020 ha (1000ha effective ): 210ha with family and the support flat; 595ha rolling; 93ha medium hill; network they receive from the 122ha shale hill. agricultural industry. 9500 stock units split 50/50 sheep/ “Success like this doesn’t cattle happen by accident, its 152 main paddocks, plus extensive bloody hard work, a lot of use of break feeding and cell grazing. planning, a lot of communiSummer dry with unreliable autumn cation and a lot of leadership,” rainfall. Annual average 800mm. Dick Kingston National Bank Crops include lucerne, forage rape, regional manager, East Coast, kale, fodder beet and oats. told the field day crowd. A typical day for the Barhams

MATHEW AND Gemma Barham spent their twenties working hard in the dairy industry. Now they’re award winning sheep and beef farmers. “Dairying served us really well,” Mathew told 350 farmers at a field day on their farm last month. “But the end goal of farm ownership was always within the sheep and beef industry.” The field day was to mark their winning of the Silver Fern Farms Hawkes Bay Farmer of the Year Award.

Mangatarata station ●

● ● ● ●

starts with a staff meeting at 7.30am. “We are effectively trying to run a large scale property with the attention to detail a small property allows,” they say. Over the past four years sheep numbers have been reduced from 5,300 to 3,700 to concentrate on achieving better performance. They breed their own replacements using Te Whangai Romney genetics. “We are aiming for a compact, hardy, low maintenance ewe which can produce good lambs yet handle our sometimes harsh summer and autumn months.” They aim for scanning in the range around 170% “In the last 3 years it’s been between 154-176%.” They have an early finishing policy for their lambs, killing lambs from early October, targeting a high percentage off mum pre-weaning. “We aim to kill lambs pre-weaning in the range of 16-18kg/carcass weight. We draft and or kill lambs every 12-18 days on-mum. Some early black- faced singles could be on their third or fourth draft by weaning - the new lanes we’ve put in make this possible. This in turn guarantees we are supplying a lamb within specifications regarding grade and weight.” They supply lambs to CMP as a member of the Waitrose Producer Group which gives them options regarding forward contracts and timing. The mix of terrain on the farm allows a range of grazing conditions. Ewes are teased/ramed in mobs of 220-260 ewes, making for about seven mobs, which are

Hawkes Bay Farmers of the Year winners, Mathew and Gemma Barham.

rotated through 42 paddocks, three paddocks apart. “We shift them three times a week to try and avoid exposing them to animal health issues.” Lambs are drenched at docking. “I’ve always drenched black-faced lambs at docking - they always seem to get a lift from that - it gives them a clean out and they really start motoring, these are big lambs,” Mathew responded when challenged on the practice. He also prefers to leave tails on the black-faced singles “unless they are really dirty.” For replacements 1,000 ewe lambs are retained. This year, for the first time, 300 have been mated. They have a flexible cattle policy, with Friesian bulls making up the majority herd. These are seen as a tradable commodity which can be purchased or sold on at any time depending on their weight. “We have great areas to winter and finish cattle.”

In the past two years, some beef bulls have been sold into the dairy service market. Bulls are wintered as rising two-yearolds in either cell systems or two/three paddock rotations with a preferred mob size of 20-30. Steers and heifers are predominantly Angus but this is not essential they say. “The Angus background gives us options for Angus Pure markets.” All cattle in the rising two year group are used to tidy up pasture at times. There are plantings of willows along gullies and some pine plantations. More are planned. “Stock shelter and shade is high on our priority list. It’s the same as new grass: we didn’t want to invest money in areas of the farm until we were sure of the areas which would benefit from such investment.” “We have finished all of our own lambs and have been able to purchase trade lambs at specific times in recent years due to crops and development."

Rural News // june 5, 2012

management 67

Deer key to station development The New Zealand Deer Farmers’ Association’s recent conference in Wanaka concluded with a field day with a difference, considering the clientele: there wasn’t a stag, hind or weaner to be seen. Andrew Swallow reports. FOR HILL country farms with a bit of finishing land there are few enterprises that can match the returns offered by deer, judging by figures presented at a field day on Mt Burke Station, Wanaka. The field day was the closing piece of the three day Deer Industry Conference, and attracted a crowd of close to 300. First stop on the morning tour was a hill overlooking a newly installed centre-pivot irrigator covering 60ha of flats more or less on the shore of Lake Wanaka. “The water supply is pretty reliable where we’ve got it,” host Tim Burdon quipped. Nicky Hyslop of field day facilitator Macfarlane Rural Business (MRB) costed fencing the pivot for deer at $15/m, which, with yarding and stock costs, would take capital cost to $81,000

more than setting it up for beef finishing. At $4/kg cwt for beef, earnings before interest and tax (EBIT) would be $49,300/ha but finishing weaner deer at an average kill date of mid January and $8/kg, then finishing lambs at $6/kg, would take that EBIT to $62,000. Comparing the marginal EBIT and capital figures ($13,000 and $81,000), gives a 16% return on capital. “It’s all very well talking about the numbers and the theory, but this is very real,” Hyslop stressed to the crowd. “There are not too many stock enterprises that can compete with these returns when you are doing a good job.” Paddy Boyd, who manages Haldon Station in the Mackenzie Basin, echoed that, explaining how a similar irrigation system installed to finish weaners then grow out hinds had transformed output

›› 10,000ha crown pastoral lease east of Lake Wanaka, plus 158ha freehold and 280ha private lease. ›› 225ha irrigated, including 61ha centre-pivot installed 2011. ›› 3-stage development plan underway, capital budget $1.7m, anticipated additional EBIT $249,000. ›› Fewer stock classes, but 50% more stock units, from 8809 to 12,500 now, and 13,260 when finished. ›› Stock balance shift from 13% deer, 68% sheep, 19% beef to 29% deer, 55% sheep, 16% deer.

on country that previously couldn’t carry a sheep/acre. “It’s gone from producing nothing to quite exceptional returns... I can see it working here.” But David Ward, a specialist cropping farmer from Mid Canterbury who winters and finishes weaner deer “A lot of people end up with high on fodder crops, ryegrass, and barley, sounded a note of caution, saying high costs, and only medium income. When productivity is essential given the you start spending money like this here, you have to have high production and investment involved.

Tenure review spur Burdon says the development plan came about following a strategic review of the business undertaken with advisor Peter Bosworth in 2009, and because of Tenure Review. “Because we’re going to lose some of the high country... it was important to get some of the other country producing and growing more feed.” Mt Burke has been mired in Tenure Review since 1993 and is still not clear of the process, though a preliminary proposal to freehold three-quarters of the 10,000ha crown pastoral lease with the balance returned to the crown/Department of Conservation estate has been formulated. Burdon likens it to the uncertainty faced by earthquake-struck Christchurch home owners waiting to find out if they can rebuild. “We’ve had 18 years like that.”

Mt Burke

Tim Burdon talks through plans for the new centrepivot irrigator at Mt Burke.

maintain your costs at a reasonable level.” Having a “very effective” electric to page 69

Rural News // june 5, 2012

68 management

Local organic cert options grow gare t h gillat t

WHEN YOU only make three or four hundred dollars from sales at roadside stalls or markets, investing two or three thousand or even more into the organic

certification is a tall order, even if you have been farming organically for a number of years. Realising this, a group of Far North growers have set about creating regional and national certifications

which they say will make organic accreditation available to all. Formed in 1989 the group’s goal was initially to share experiences and to improve as organic farmers, but they soon dis-

covered that even though they were doing well as businesses, getting organic certification was something of a burden. Certification from Biogro, Demeter or Certenz, the three major

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Farmers thinking about farming organically need to match certification to their business and their intended market, says Soil and Health Association spokesperson Steffan Browning. “It all depends on consumer expectations and whether you need to be certified with a well known brand like OFNZ or if a regional certifying brand will work just as well,” says Browning.

three accreditation agencies, costs at least $1500 a year. Inspectors generally come from south of Auckland, and standards are designed largely for export markets, making the compliance burden on growers selling locally or just nationally appear too great. So, in 1995, the group decided to create its own certification for local and national markets. Kristen Khaine, Far North Organic Certification manager, says the biggest difficulty was convincing wholesale buyers that the certification was genuine. “It was putting together a standard which was done by experienced and committed members...once it was going it was surprisingly easy. “When they realised we were working to the BioGro Standard and each property was audited annually, they knew we meant business.” There are some differences in standards, however. For example, FNOG allows users to apply uncertified RPR provided it comes from New Zealand sources. Such RPR contains less than 1% cadmium, the compound which can prevent RPR earning an organic label. To ensure standards are met group certifying agents and administrators can refuse certification, downgrade it, or even remove it all together. “The first one we had to deal with, years ago, bla-

tantly used roundup and waste oil on animals and gateways,” says Khaine. “We had a lengthy discussion with the Certification Committee and decided to remove their certification.” While the group’s system was accepted locally, things became difficult if the grower wanted to sell produce outside of Northland, says Khaine. That lead to Organic Farmers of New Zealand certification, essentially a national extension of the FNOG certification, costing $225 instead of $90 for FNOG’s regional approval. “The main advantage that anyone gets is a guarantee to their customers that they are operating to an organic Standard & audited annually… Often in the Kaitaia Market we are asked if we are certified, and we can provide those details. Currently 10 growers are regionally certified with FNOG, all in Northland, and 15 certified nationwide. Farmers market standards will be the key to smaller organic growers’ futures, she believes. “So long as the Farmers Markets don’t get too pedantic with their rules and regulations, and stick to organics meaning Certified Organic, they will be a huge benefit to everyone, especially small producers who need to sell their excess produce locally.” See www.farnorthorganics. co.nz or www.organicfarm. org.nz for more

Rural News // june 5, 2012

management 69

Shedding light on black beetles

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With a plethora of individual research projects on black beetle being carried out by AgResearch scientists, a recent get together at Ruakura provided a chance to update peers and swap ideas. Sue Edmonds reports AGRESEARCH SCIENTISTS have been counting black beetle populations at defined sites in Waikato and Bay of Plenty since 2008. To date it appears Bay of Plenty numbers are dropping, while Waikato populations are, as Dr Pip Gerard describes it, ‘muddling along’ with numbers remaining relatively high on peat soils. How well black beetles mature differs according to climate, doing poorly when it is cool and wet compared to when it is hot and dry. Pasture growth rates are being measured at the beetle monitoring sites and what happens to black beetle numbers if a crop such as sorghum, rape, turnips or maize is introduced into the pasture renewal cycle is being investigated. The beetle stops feeding in winter and previous field observations have indicated that this occurs when temperatures drop below 15°C. Joanne Jensen is investigating if temperature is in fact a key trigger for this overwintering behaviour. She’s also testing the effects of food availability and day length using pieces of carrot as a measurable food source. A very labour intensive PhD study by Kathryn Ross on the effects of different endophytes on beetle feeding, survival and egg laying is being carried out between May and November this year. Her project involves 112 buckets, containing seven replications of

Research focus: black beetles are on the decline in Bay of Plenty but not in Waikato.

eight different ryegrass host/endophyte combinations, with and without beetles. Each will be assessed every four weeks, providing valuable information on how endophyte changes feeding behaviour of adults and how this can affect the next generation of larvae. To predict beetle population outbreaks, modellers, led by Dr Kumar Vetharaniam, are adapting the only previous work in this area, which was done in the 1980s by P D King, and limited to different pastures and environmental conditions than those present today. Simulation of temperature effects on beetle death over different years has shown that while there is some correlation, beetle outbreaks can occur at unexpected times. Vethara-

niam wants all those doing research projects to make data available to increase the value and decision making capability of the model. Mike Wilson talked about a possible biological control. Overseas entomopathogenic nematodes, produced in commercial quantities using 25,000 litre fermenters, have been proven to destroy horticultural pests in Britain and mole crickets in Florida. His group is searching for nematodes here in New Zealand which can be commercially multiplied, and either inoculated or sprayed on pasture to attack both adult beetles and larvae. AgResearch colleagues at Lincoln are working on various other types of pathogens which effectively kill insect pests.

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Deer key to station development from page 67

fence system to subdivide under the pivot would be key. “They [deer] can tell if it’s off, and they get very smart. We try to get them gone before they get too smart.” The second stage of the major development project underway on the station, and the second stop for the field day tour, was a 260ha rolling hill block previously dominated by bracken fern and scrub. Most of it was sprayed off a year ago with a double hit of glyphosate, then in September, after preparation of firebreaks, the whole 260ha burnt, before heavy discing and harrowing. Lime – no small expense at $80/t delivered to the airstrip - was flown on at 1t/ha at the beginning of October, as was 150kg/ha DAP max sulphur super, followed by 44kg/ha of a ryegrass, cocksfoot and clover mix.

After a pass with cover harrows on October 10, the heavens opened. “We were blessed. The whole thing worked like clockwork,” station manager Grant Ruddenklau recalled. He reckons carrying capacity has gone from virtually nil, to 4.5 stock units/ha. Consultant Peter Bradley of MRB put the clearance and reseed cost at $1500/ha, which, with $600/ha to stock it, brought the development in at “just over $2000/ha.” While the long-term plan is to use the block for deer – probably weaners and replacement hinds – initially it will be an increased ewe flock of 8000 crossbreds and their progeny that benefit. “This isn’t a corporate farming type development where you might have a six year window before investors expect a return,” noted local farmer and helicopter contractor Jonathan Wallis.

“This is cashflow development.” With the centre-pivot investment, and the renovated hill, a $207,000 increase in EBIT is anticipated this year, giving a 15.8% return on the $1.3m of capital deployed in the development to date. Stage three of the plan – deer fencing a 1000ha high country block and boosting the herd from the current 160 hinds, 150 velvet stags, and 150 finishers, to 920 hinds, 100 stags, and 700 finishers – is budgeted at a capital cost of $377,500, after allowing for the sale of 2000 ewes. With another $41,552 added to the EBIT, that’s an 11% return. “And we think that’s conservative,” noted Hyslop. “Deer do have a really good fit on this country, particularly the high country. It’s really about identifying where the best fit is for the hinds and there’s no doubt in my mind that it’s in the high country.”

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Rural News // june 5, 2012

70 animal health

Caring for farm dogs in winter MY HEART goes out to working dogs in winter. Life is pretty grim for them. Life is unpleasant for us as well, but at least we can remove wet clothes, replace them with dry ones, put another log on the fire and turn on the electric blanket before going to bed. Most people don’t give a lot of thought to the farm’s hardest workers, Huntaway and Heading dogs, but please take a moment to read this and consider their winter plight as temperatures plummet. Although a dog grows a slightly longer denser coat in winter it isn’t enough. We tend to prefer short coated dogs in New Zealand and our winters are harsh. Even the best kennels are, in my mind, inadequate. Most of them have the door in the centre, so there isn’t even a corner dogs can huddle behind, and the wind whistles straight onto them. Some owners are responsible enough to cover part of the run so the worst rain doesn’t drive in, but pity the dog whose owner hasn’t. The kennel, even if new, provides a meagre amount of protection. Then there are the kennels with missing or rotten cladding. The poor

coats. Even short haired dogs benefit from a grooming when they moult. I have a grooming comb at the kennels and my dogs love it, all jostling for a turn. You’d be surprised at all the dead hair that comes out even though they are free to swim and roll. Is it that some farmers just not think, or see the state of their dogs? Or is it not the done thing to groom a working dog, because it might be considered ‘unmanly’? Incidentally, a dog with a healthy coat will be less affected by both heat and cold therefore performing better in its work. I know farm dogs are workers, not city layabouts, but over the years I have seen too many pathetically sad, skinny,

dog may as well be sleeping under the stars for the pathetic shelter being offered. Someone at a recent dog training day I had, questioned ‘do your dogs work?’ I admit they do look like pampered pooches as their coats are so black, shiny and thick. I pride myself in having well fed, healthy dogs, all year round, and it shows in their coats. I must confess that their food rations are bumped up considerably in the winter and you would be hard pressed to feel hip and rib bones. I do this to help keep them warm. The work load is less and it A quick comb two or three isn’t hot, so times a year works wonders. there isn’t a problem dull coated dogs followwith performance. ing ignorant farmers. You It saddens me to see would think so called ‘dog dogs with dull matted

A healthy coat, and maybe a little extra condition, helps keep out the cold.

enthusiasts’ – triallists would know better but even some of them don’t. There is no excuse,

apart from illness, for a dog to have a lifeless coat. If it is fed enough quality food, treated for fleas, lives in a clean kennel, and it is (gently) combed several times a year it will look a picture of health

and be a credit to you. Something I do in winter when my dogs come in covered in thick mud is give them a hose to get most of it off. The dogs then give a shake and are clean and virtually dry. It saves them being cold and muddy for hours and having to lick it off.

All it takes is a few moments of your time to make your deserving dog’s life a bit more bearable for all that he does for you. • Anna Holland is teaching people dog training. For more information www. annaholland.co.nz or Ph 06) 388 1318 or annaholland@xtra.co.nz

Rural News // june 5, 2012

animal health 71

Know your cows’ stress signals DAIRY FARMERS need to identify signs of cow stress to improve the milking experience for both animals and staff, an Australian cow behavioural expert says. Darold Klindworth, a research and extension scientist at Australia’s Department of Primary Industries, Ellinbank, was among speakers at last month’s Dairy NZ Farmers Forum at Mystery Creek. “When a cow is stressed, it can lead to lower milk yields, increased milking time and higher animal health costs. Plus, if your cows are stressed and acting out, that often creates stress for staff as well,” he warns.

While many cows demonstrate outward signs of stress, some don’t. “That’s why it pays to learn a bit about how cows are naturally hard-wired

Darold Klindworth

to react to certain stimuli around them. That way, you can create a better milking experience for the animals and farm staff.” Klindworth says the way a cow responds to loud noises, sudden movements or even cer-

tain smells is in its evolutionary nature. In the wild, survival depended on responses to activities around them. For instance, their natural response to a sudden movement or noise is to flee. So if a farmer suddenly flaps his arms and shouts, cows will get agitated and flighty rather than choose to walk calmly into the milking shed.” Research shows stressed cows have increased adrenalin levels, adversely affecting milk let-down, sometimes by as much as 30 minutes. “So, if we can eliminate activities such as forcibly pushing cows into the shed, for instance, we can speed up milking times

significantly.” Decreasing cow stress can also have a significant impact on animal wellness. “Stress is one of the many factors that can increase a cow’s probability of being infected with mastitis. Additionally, stressful trips down the race or anxiety due to crowding inside the yard can contribute to lameness. “In the end, happy cows can lead to a decrease in farm working expenses and increased profitability.” Klindworth’s workshop at the forum, ‘Thinking Like a Cow’, was one of 12. For more see next week’s Dairy News.

Pour On & Dip

TB control and deer work recognised Southlander Kevin Gilmour’s been awarded the Deer Farmers Association’s Matuschka Award.

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THE NEW Zealand Deer Farmers Association has presented retiring TBfree Southland committee member Kevin Gilmour with its Matuschka Award. Gilmour has been associated with the TBfree committee for 20 years and until recently ran a deer farm on the edge of the Hokonui Hills. “The award came as a very nice surprise,” says Gilmour. “However, I can’t emphasis enough how important the support and technical expertise of the New Zealand Deer Farmers’ Association

and TBfree committee has been in achieving our objectives.” He joined the committee when his deer herd repeatedly broke down with bovine TB as a result of contact with infected possums. “Bovine TB was not only causing financial hardship on our farm, but the disease was also affecting other Southland deer and cattle herdowners – something had to be done to bring it under control.” The Animal Health Board says his contribution to the deer industry has been crucial in protecting South-

land from TB and the award honours his commitment and service to the region’s deer farmers. Not long after joining the committee, funds were provided for intensive possum control in the Hokonui Hills, which was a major TB stronghold in the region. “Kevin has been a strong advocate for eradicating the disease in Southland and also worked to maintain farmer support for the TB programme,” says TBfree Southland Committee Chairman Mike O’Brien.

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Rural News // june 5, 2012

72 animal health

Massey vet school expansion plan MASSEY UNIVERSITY has announced a $75 million upgrade and expansion of its veterinary school, increasing capacity by 180 students. Massey is New Zealand’s only vet school and

the investment will ensure it remains at the forefront of international veterinary scientific research and teaching, says University Vice-Chancellor Steve Maharey. “Veterinary, animal and

biomedical sciences are central to what we do as a university and central to the sectors in which New Zealand is world leader. We want the quality of the facilities our students study in and our staff work

in to match the quality of the qualifications we deliver.” The project will be funded over nine years from the annual capital expenditure budget. Project leader and head of the

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Institute of Veterinary Animal and Biomedical Sciences Professor Frazer Allan says it will create space for projected growth in numbers of postgraduate and undergraduate students. “Our staff have been keen for this upgrade for some time and are really excited about the opportunities it offers,” says Allan. “Each year we have a high standard of applications from many more people than we have space for. “We also expect there to be a growing shortage of vets in New Zealand over the next 20 years.” The project includes expanding the vet tower to the north and extensive redevelopment of the veterinary hospital, pathology facilities and teaching and research spaces while at the same time retaining teaching, research and clinical service functionality. Course capacity per year will increase from 100 students to 140. Providing Government agrees to fund the additional

domestic students, about 20 would be from New Zealand and 20 international, it’s anticipated. Massey’s veterinary science programme is accredited with the American Veterinary Medical Association, the Royal College of Veterinary Surgeons and the Australasian Veterinary Boards Council, which means Massey vets can work in most countries throughout the world. “Through modelling work we have undertaken and through conversations with the profession, it is apparent that if we value New Zealand-trained veterinarians in this country, we will need to train more in the future. “We also have worldrecognised areas of research in infectious diseases, animal science, animal health and welfare, pathobiology, public health and epidemiology.” Veterinary Council chairman Ron Gibson welcomed the investment, saying an increase in a capacity to train vets would be fully supported.

Cheeky fundraiser SEVENTY THIRD year Massey Vet Students have posed for this year’s “barely there” half year calendar, which was launched late last month. The July to June calendar has an ancient Olympics themed front cover, and monthly shots taken in settings such as a shearing shed, pig farm, and wildlife reserve. Profits are split 90% for the students halfway celebration weekend in Taupo, and 10% to another cause, this year being the New Zealand Wildlife Health Centre in Massey’s teaching hospital. Last year’s calendar raised over $3,000 for SPCA Canterbury.

Rural News // june 5, 2012

animal health 73 Molecular biologist John Lippolis taking a milk sample at Ames, Iowa, USA.

Animal welfare and world hunger tension

Vitamin D mastitis control A L A N H ARM A N

A NATURAL remedy, vitamin D, can delay and reduce the severity of mastitis infection in dairy cattle, say US-based researchers. Scientists at the Agricultural Research Service’s National Animal Disease Centre in Ames, Iowa, say the discovery could lead to a reduced use of the antibiotics to treat mastitis, the most costly and common disease of dairy cattle. Molecular biologist John Lippolis examined the role of vitamin D in altering the response of the cow’s immune system to Streptococcus uberis, a mastitis pathogen. The research team used a natural form of vitamin D, prehormone 25-hydroxyvitamin D, that’s found in blood, but not in milk. One group of cows received vitamin D by infusion directly into the infected quarter of the mammary gland, and another group received no treatment. Data was collected on feed intake, bacteria counts in milk, milk production, serum levels, and body temperature for all animals. Animals treated with vitamin D had a significant reduction in bacterial counts and fewer clinical signs of severe infection than untreated cows. In the early phase of infection, as vitamin D reduced the bacterial counts, milk

production was greater in the treated animals than in the untreated ones. Scientists also looked at bovine serum albumin (BSA) in milk and performed somatic cell counts, the immune cells that enter the mammary gland to fight infection. “BSA is a protein in blood that becomes a marker in milk to indicate when an infection gets really bad,” Lippolis says. “The barrier between the milk and the blood can become a little bit degraded, indicating the severity of the disease.” Lippolis says the findings show that vitamin D affects the immune system and suggest that it also may help reduce the use of antibiotics in treating mastitis. Vitamin D also has the potential to decrease other bacterial and viral diseases, such as respiratory tract infections, he says. “Research shows that specific levels of vitamin D need to be in the bloodstream to prevent conditions like rickets, or softening of the bones. A higher level needs to be in the blood for proper immune function. But generally, milk has very little vitamin D. “We hope this natural form of vitamin D will be a means to reduce antibiotic use either by using this in tandem with antibiotics and shortening the duration of antibiotic use, or as a means against some bacteria that are resistant to antibiotic treatments.”

as enhanced disease resistance. THERE’S A conflict between “Both Australia and New Zeathe world’s increasing demand land are already well down the for animal derived protein while track of genetic improving improvement animal welFarmers will not essential fare, the New produce food unless that’s for increased Zealand Vetefficiency in erinary Asso- it is economic for livestock prociation’s them to do so. duction.” animal welWilliams fare coordinoted economic viability is nator Virginia Williams says. Speaking at last month’s Aus- “another issue”. “Farmers will not produce tralian Veterinary Association food unless it is economic for conference in Canberra, Wilthem to do so. And of course a liams said the key to increasing big impact has been society’s food production from animals increasing demand for more will be selective use of genetic technologies to breed for animal humane use of resources, including livestock.” welfare friendly objectives such

in brief NZ hosting sheep vet congress ROTORUA WILL host the 8th International Sheep Veterinary Congress February 18-22 next year, with the theme “connecting sheep and science”. Pre-congress tours include a 12 day South Island option, or three day North Island route. The four-yearly event was last held in New Zealand in 1989 when Massey was the venue. The event has twice been held in Scotland, including the first congress in 1985, with Australia, South Africa, Greece and Norway the other host nations to date. See www.intsheepvetassoc.org for more.

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Rural News // june 5, 2012

74 animal health

Wormy autumn but healthy LOW LIGHT intensity and stock grazing what were long pastures earlier to low levels now mean parasite challenges are particularly high this autumn, say

experts. However, with ample feed and good body condition, stock don’t necessarily need drenching. “This autumn has been

particularly wormy, with very high larval challenges in lambs,” Oamaru-based vet Dave Robertson told Rural News. “This could result in

ticularly high challenge. But that still doesn’t necessarily mean intervention’s necessary, especially for adults. “Generally speaking, ewes are in great order and they’ve still got lots of feed underneath them. If they continue to be well fed you may not get rewarded [for treatment]. It could be different if we have a big snow and the pressure comes on.” Rising one-year-old cattle are more likely to respond, particularly those facing the stress of being switched from grass onto winter feed crops. “It’s really important that you track the faecal egg count in these animals and if you do treat, check it again about a month later.” That advice applies to beef calves or dairy heif-

ers, he adds. “The worms don’t care if they’re black and white, or brown.” Robertson says for ewes, long acting drenches such as the injectables will have a place on some farms pre-lambing. Only targeting the groups of ewes which will yield the greatest return from such treatments – most likely low condition score and/or those carrying twins and triplets – will help protect products from resistance. Other sustainable drenching practices such as refugia (leaving a proportion of flocks un-drenched) and exit drenching with a novel active or triple combination when tail effect of the long-acting drug is wearing off, are also recommended.

He believes the best time to use long acting drenches pre-lamb is about 40 days prior to the start of lambing. “This ensures that ewes are not under parasite pressure in the last month of pregnancy and the first month of lactation, which is the driver of early lamb growth rate.” Long acting injectables such as Cydectin LA (moxidectin) do cost considerably more, at about $2.30 per 65kg/ewe compared to about 30c/ewe for a short acting oral, he acknowledges, but if benefits such as reduced crutching of ewes, better growth rates of multiple lambs, and better ewe body condition come weaning are achieved, the investment can easily pay for itself (see sidebar).

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higher worm burdens being carried through the winter by capital stock if not well managed but if ewes are fed better and in better body condition, their own immune system will be better placed to handle a worm challenge.” That’s echoed by parasite specialist Greg Mirams, of Dunedin-based Techion Group. “Locally there’s been a really high challenge in cattle. Some [faecal egg] counts have been through the roof.” Longer grass than normal, and in some areas more dull days, means larval stages on pasture haven’t been exposed to as much UV as normal, with consequent higher survival, he explains. Now, as stock chew down these pastures, they’re being hit by a par-

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Rural News // june 5, 2012

anminal health 75

livestock expected Mirams warns one possible pit-fall is nematodirus, a lamb-specific parasite. If that’s the problem with lamb growth rate, no matter how well ewes are protected, it isn’t

going to help. “It goes from one season’s lamb crop to the next. This is where some of the ewe treatment benefit can be destroyed.” He recommends mon-

itoring ewe faecal egg counts in late pregnancy to determine the need to treat, taking into account condition, feed availability, and scanning result. “If they’ve got a belly full of lambs and they’re still behind a wire, that’s often when we see an elevated parasite challenge.

There’s more pressure on them then than when they’ve been spread out for lambing.” The other crucial factor is to know the resistance status of parasites on the property. Mirams says BZ/ levamisole combination drenches are now fail-

ing on 22-25% of all sheep farms and even moxidectin, the least resistance affected active in the ML group of products, has had problems. “Especially in areas where it’s been used heavily against barber’s pole, like up the East Coast of the North Island.”

Greg Mirams, Techion Group.

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Robertson conducted an on-farm trial in Mid Canterbury in 2010 comparing injection with Cydectin LA 16 days pre-lamb, with pre-lamb and tailing doses of oral drench Leviben (levamisole + ricobendazole), and an untreated control. A mob of 600 twin bearing two-tooth ewes was divided into two, then each mob placed into three treatment groups. The property had a history of using short acting oral combination drenches across its lambs and ewe flock: ewes at pre-lambing and at tailing; lambs at tailing and three weeks before weaning. “It raised a few concerns about the risk of resistance developing in the flock, and provided a good farm to trial the long acting injection upon,” says Robertson. Drench resistance status was unknown and the autumn window for testing that had passed by the time the trial was set up, he adds. Ewes treated with Cydectin LA were 4.3kg heavier than those in the control mob by weaning, and 1kg heavier than those treated with the oral drench, though the latter result was not statistically significant. Lambs from Cydectin LA treated ewes were 2.6kg heavier than those from the control mob, and 1kg heavier than those treated with the oral drench. “Further breakdown of data showed the real benefits of Cydectin LA fell with those ewes that were lighter to begin with,” notes Robertson. “ Those lighter than 62kg or less than body condition score 2 pre-lamb recorded the greatest gains from receiving long acting treatment, and would have been most at risk from the stress of parasitism.” Robertson also points out 80% of the long-acting moxidectin treated mob were dag-free, compared to 30% of the oral treated group, and 10% of the control. “Obviously there will be the benefit of lower fly problems with less dags, and less crutching costs.” Lower pasture worm egg contamination from the long-acting treatment would be another benefit, faecal egg counts at tailing finding no eggs from Cydectin LA treated ewes. Half the oral treated ewes were shedding eggs, and most of the control ewes. Cydectin LA contains 20mg/ml of moxidectin and is administered at 1ml/20kg liveweight by subcutaneous injection at the base of the ear or high on the neck. Withholding time for meat is 91 days; milk 180 days. Pfizer says at recommended dose rates it prevents reinfection from Haemonchus Contortus for 91 days; Teladorsagia (Ostertagia) circumcincta 112 days; Teladorsagia Colubriformis 42 days.

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Rural News // june 5, 2012

76 animal health

Tool to hike heifer in-calf rate KEEPING A closer eye on replacement young stock weights should lead to better heifer in-calf rates, says LIC. The cooperative is this

month launching a new tool on its MINDA system to help monitor replacements’ progress against benchmark figures tai-

lored to genetics and the farm’s planned start of mating and calving heifers. “It provides farmers with targets that are spe-

cific to each of their animals and mobs, and by pegging the targets to the farm’s planned starts for heifer mating and calving, the true impact of liveweights can be assessed,” says LIC’s veterinarian and reproduction solutions manager, Greg McNeil. “These events always occur at set times in seasonal herds and targets must be achieved by those dates, whether they [the replacement heifers] are born early or late.” These days most replacements are grazed away from the milking platform, often by a grazier, and many farmers will have experienced disappointment or heard the horror stories about results when they return, says McNeil. The new tool, MINDA Weights, will still need

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the farmer to input data e-mailed or supplied to him by the grazier, but once the data is loaded, the grazier will be able to see how weights compare with targets. “MINDA Weights presents young stock weight information exactly how a farmer would want to see it - in a practical format that is easy to understand and utilise for important management decisions such as preferential feeding or treatment. “Its webbased platform also means they can share access with other farm staff, their vet, and their grazier, so everyone can monitor the animals’ growth.” There are three data view options are: young stock overview, weight range trends and identify/ manage individual animals. A graph for all animals helps identify those that are on-track, recovering, require monitoring or urgent attention. The package can generate lists of animals to inspect. LIC research shows poor heifer rearing is a significant contributor to the decline in the national herd’s reproductive per-

LIC’s veterinary and reproduction manager, Greg McNeil.

formance and six-week in calf rate, with 73% of stock below liveweight breeding value based targets by more than 5% at 22 months of age. “This practice of rearing away from the farm can sometimes result in an ‘out of sight - out of mind’ culture, which is dangerous territory for any farm because the rearing of these animals in that first two years is crucial to their reproduction and production performance throughout life,” stresses McNeil.

“By rearing young stock to their full potential, farmers will see improvements in their six-week in calf rate which is essential for improving farm profitability.” Incorporating genetics in the targets recognises the growing diversity in the national dairy herd, he adds. MINDA Weights is undergoing customer testing and will be available, free to MINDApro customers, from MINDA Home later this month.

Beef cow conception tips from over the ditch A MEAT and Livestock Australia (MLA) supported study of more than 30,000 breeders in northern Australia found beef cow condition a significant factor in conception rates. “We expect cows in a backward store condition (condition score 2) at calving to achieve a pregnancy rate of 20–50% at the subsequent mating, whereas for cows in body condition 3 or better, a conception rate of 60–90% would be expected,” says principal beef extension officer wtih the Department of Employment, Economic Development and Innovation, Mick Sullivan. “When cows get run down in condition, their ovaries shut down. It can then take some time after the seasonal break for these cows to regain body con-

dition and for the ovaries to re-commence cycling. “On a lot of poorer country, and particularly with first-calf cows, they will not cycle until [their calves are] weaned.” Sullivan says Australia’s northern cattle producers have three tools to manage breeder body condition: grazing management, weaning and supplementation. Weaning in particular is a powerful tool to manage cow condition, because nutritional demand of a lactating cow is about 50% above that of a dry animal. “On tougher country, weaning earlier in the year and down to a younger age is critical because it’s a lot harder for cows to maintain condition.”

Rural News // june 5, 2012

machinery & products 77

Honda’s new quad makes good impression b e r nard lilbur n

FIRST IMPRESSIONS are important, and mine of the new Honda TRX500FPM (manual) was: this is good! Pahiatua dealer Bevan Bisset showed me features of the machine, and made sure I knew how to operate it correctly. This model is a huge step up from an older Honda 500 I rode recently. With power steering taking the fight out of the front, and a huge improvement in ride comfort, this manual bike is an easily operated and comfortable. The TRX 500 has a new 475cc OHV, liquid cooled and fuel injected engine with 10% more power and 6% more torque. A new cooling system, gearbox and suspension, new styling and seat design, and even a new heavy duty battery, round out the upgrade. Honda has made much of this machine’s ability to work, the new engine providing heaps more power, and stump pulling torque from almost idle. This is the bike if you want a manual tow machine. Ergonomics are typical Honda, a change being you wait for the orange light to go out on the dash before hitting the starter, allowing the fuel injected engine to prime itself – no choke. Honda has retained a black ‘start’ button on the bottom of the left-hand handlebar console, where most other manufacturers have a green button on the top. Also if you wish to start the machine in

gear, pull the right hand brake, not the left like all others. And this quad has a recoil starter. They’ve kept it simple: controls and layout are where a Honda pilot would expect them to be. The rear suspension has had a redesign: functional and simple – nothing for mud and crap to build up on – but also helping ride comfort. Suspension travel front and rear is 170 and 175mm respectively, and seat height 880mm, making this a low-riding quad compared to some of the opposition. Ground clearance is 193mm, up on the older 500s, and there is a tradeoff between a lower centre of gravity and ground clearance and ride quality. Two major competitors models have at least 80mm more. This machine is easy to handle, especially with the power steering, and with the beam axle suspension it can be fun as well, with the back end easily flicked out. I found the 5-speed gearbox a bit tight but I put this down to newness. I had to blip the throttle

to change up. That said, what a cruisey and torquey engine, happy to puddle along and to pull away in fourth gear at about 20km/h. This machine has a gear for every occasion and is faster than the older 500, topping out at 80kph. It is first and foremost a worker. The TRX500 has the standard dual headlight setup at the front plus one mounted on the handlebars, so it turns when you do. Great for finding the cows in the early morning and these were the best lights I’ve experienced on a quad, giving good penetration and spread. Brakes are twin discs at the front and Honda has gone back to a drum at the rear. They work well, and provide progressive stopping. I am not tall, and found the riding position suited me. With this new bike, you sit further back from the handlebars and this will suit taller riders. The bike seems wider, but it may have been the Smith bullbars that exaggerated this. The floor has plentiful drain holes and the foot-

The new Honda TRZ 500 TPM is a step up on the old Honda 500.

pegs are decently lugged so there is no danger of slipping. The mechanical 4WD system is engaged by slipping the lever forward mounted on the left hand side of the tank. Riding around our farm loop of 6km with terrain flat-to-steep, I found this machine more than capable with excellent stability. My only real gripe was that when it ran out of traction it bounced quite alarmingly, especially towing a

Kea trailer. If you want a manual quad – even the test rig at over $17000 – this durable brand is worth considering. What’s Hot: power steering, more supple suspension improves ride comfort. Good torquey engine. What’s Not: bouncing when losing traction, low ground clearance.

The beam axle suspension ensures easy handling.

Verdict: A timely upgrade to Honda’s work-

horse. A good quad made better.

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Rural News // june 5, 2012

78 machinery & products

Dairyman turns bridge builder TO N Y H OPK I N SO N

FORMER DAIRYMAN Pat Seuren switched career to become a qualified builder, then went on to civil engineering. Now he builds bridges. Four years since he founded Bridge IT NZ, his Tauranga company lists projects from Cape Reinga to Wellington. “We do roading and farming bridges and this includes making, supplying and installing new ones as well as upgrading including sand blasting, painting and redecking in concrete or timber.”

Seuren has a special concern for culverts and farming bridges as he believes some well built structures are coming to the end of their life and farmers should be checking them regularly, or retaining a civil engineer for professional advice. “Farm culverts and bridges are used daily and have to be safe for the farmer, his staff, contractors, trucks, visitors and livestock.” One of his customers is the John and Pam Easton farm at Aramatai, off SH4, south of Te Kuiti. They have 248ha of flat-to-

rolling country and “farm every inch”. They run 320 dairy replacements from three dairy farmers from Otorohanga, and a flock of 900 high producing ewes finished with Poll Dorset rams. “The rainfall is 1870mm well spread and this year has been one of the best we have ever had,” said John. On February 8 a truckand-trailer of gravel crossed the main bridge on their farm and after the truck had crossed, one side of the bridge collapsed with the trailer

Farm bridges and culverts are used daily and should be regularly checked they are still safe to use.

still on it. The trailer spilt a small amount of metal into the stream but remained attached to the truck still sitting on the hard. “To this day we don’t know what happened,” John says. A 14t digger working on the farm, which had crossed the bridge in the morning, was used to lift the trailer back onto the

Fairbrother now has two brands...

hard. The driver was able to spread the metal and the bridge, after being checked, was open next day. Sueren, who had two other farm bridge projects nearby, visited the farm on the Friday with an engineer to test a site for a new bridge. Bridge It NZ had a temporary bridge available in Taumarunui, one hour away and this was collected the following morning and was in place and operating by lunch time. The site selected

for the new bridge was 3m upstream of the old one. Firstly batters were formed using large slabs of stone from a local quarry and lightly covered with soil to establish grass. Behind these on each side were driven into the ground three large steel beams till they reached a hard base at 6m. This was done on the February 19 and six days later Bridge It had boxed and poured the two abutments around the piles, followed two days later with the laying of the cross

beams. They are laid on rubber pads to allow some movement. Piles, deck beams and abutments are all fully braced. Rails and finishing took another two days and “well ahead of schedule,” the job was completed. Easton was not allowed to use the bridge for 25 days to give the concrete time to cure. “It was a win-win situation; we did what we do best – build the bridges and the farmer does the approach fencing.” Tel. 0800 222 189

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Rural News // june 5, 2012

machinery & products 79

Upgrade of gate plant ticks boxes A COSTLY upgrade of the air-discharge system at Gallagher’s gate and hardware factory at Pukekohe has the plant up-to-scratch environmentally. Completed in January, the system meets the requirements of a new Air Discharge Licence administered by the Auckland City Council. Gallagher also recently installed a sand filter to capture galvanizing zinc and other metals that accumulate on the yard. Rainwater washes the particles into the filtering system. The company competes here and overseas against manufacturers that don’t have the same compliance costs and can therefore sell products at a lower price. Business unit manager

Ian Richards says a wetscrubber system filter fumes from its hot-dip galvanising department by means of a series of watercovered trays that filter contaminants from the air before discharged to atmosphere. Stephen Hoffman, general manager of Gallagher’s animal management division, says the company takes seriously its “obligation to ensure all manufacturing processes are as environmentally sound as possible.” Ian Richards says Gallagher has always been proactive when it comes to environmental issues. “We focus on quality as our point of difference [from overseas competitors].” The Pukekohe plant makes gates for country

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THE METAL jerrycan is making a comeback, says auto accessory seller Griffiths Equipment. Plastic fuel cans had overshadowed metal, but now better designed metal cans, newer technology and safety concerns about older plastic fuel containers has put a spotlight back on metal. Griffiths sells Europeanmade Pro Quip – a “new take on the traditional cans that older motorist will probably be familiar with,” says sales manager Bruce Walker. Plastic containers have a limited lifespan and should be replaced before they wear and leak, he says. “These latest metal cans are inherThe metal ently safer, stringently jerrycan is making a return. tested and they meet defence forces specification. They’ve been dropped, subjected to fire and corrosion, and pass with flying colours.” A special coating on the inside prevents rusting, which means they are also suitable for holding water. They are certified to Australia/NZ Standard 2906:2001. Colour finishes include red, orange, green blue, grey and brown. Sizes are 5, 10 and 20L and they fit standard recreational vehicle racks. Griffiths offers ID tags ready-printed with the name of the contents, e.g. 2-stroke, petrol, oil, diesel etc, or an unprinted clear label for writing on. The labels don’t fade.

* Normal lending criteria & conditions apply

www.powerfarming.co.nz

09 438 9163 09 423 8558 09 238 7179 07 889 5059 07 870 2411 07 882 1310 07 543 0021 07 308 7299 07 882 1310 06 868 8908 06 879 9998 06 278 0240

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Rural News // june 5, 2012

80 machinery & products

Sliding farm gate is solar powered neil keating

A SOLAR-powered sliding gate – activated by remote, keypad or GSM mobile – suits rural properties, says manufacturer

LeaWeld, Auckland. Sizes are 4.2m (ex stock) and 3.55, 3.66, 3.96, 4.25, 4.55 and 4.88m. The longest so far supplied was 13m. Installations meet

OSH and accepted security standards. This type of gate gives greater security and is less prone to breakdown than swinging double gates, says the maker.

The gate has a rackand-cog drive (steel with nylon coating) fitted above ground away from harm by rain and mud. The rack will not override the drive cog in the event

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A built-in timer can be set to operate the gate during peak traffic times.

of ‘powering on’. And the gate will not slide out of the support tower, a further security/safety feature. An array of light beams prevents the gate from closing on people or vehicles – including the drawbars of truck-and-trailer units. The gate clears the ground by 160mm (assuming level installation). The motors are 24V. Optional battery backup (12V dual or deepcycle) can supplement the solar power cells. The deep-cycle battery suits intensive use during peak hours. Opening and closing the gate can be by: • Hand-held remote – two units are supplied as standard. • Keypad on the gate tower or on a gooseneck

– no getting out of the vehicle. • GSM remote using SMS text or a free call from a mobile phone (SIMcard not supplied) with 64 numbers stored. The GSM gate opener accepts calls only from authorised numbers. This operates anywhere with GSM coverage – no distance limit. Users’ numbers are added or deleted by SMS text command. A built-in timer can be set to operate the gate during peak traffic times. Manual over-ride disengages the gate as required. All steel components are hot-dip galvanised and may be painted to order. Other optional features are flashing warning lights and an audible alarm. Tel. 09 827 1904 www. leaweld.co.nz

Tyre seminars POST DRIVERS

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A BRITISH tyre expert from Michelin Tyre will next month tour New Zealand to speak on the role tractor tyres play in getting best productivity. He will speak at meetings organised by TRS Tyre and Wheel. The company says correct tyre choice and application can help raise productivity by, for example, reducing soil compaction and so increasing crop yield, and reducing wheel slippage resulting in less fuel burn and less time in paddocks. The July meetings will simply help farmers and contractors get more from their tyres, TRS says. Key topics will be: understanding technical data, tyre pressure and its effect on soil compaction, wheel slip, productivity and fuel consumption, and machine set-up including ballasting to get best tyre performance. Attendance is free; prior registration will help in venue and catering purposes. People registering to attend will get venue details before the meeting date. Meeting times are 11am to about 2.30pm. Venues and dates: Gore, Monday July 9; Mosgiel, Tuesday July 10; Ashburton, Wednesday July 11; Feilding, Thursday July 12; Morrinsville, Friday July 13. Tel. 0800 336 334 or 027 255 5483. nikkip@trstyreandwheel.co.nz

Rural News // june 5, 2012

machinery & products 81

Can Am’s SSV takes command b e rna rd lilbu rn

Sport button on the dash. I recommend the black key stays in the boss’s pocket. A great safety feature is that if the seatbelt is not buckled up, the machine defaults to “limp mode” which is the get-you-home feature if something goes awry and limits speed to about 20km/h. We tried both keys, and the machine with the grey key performs

JUST THROUGH my shed is the machine I consider the best side x side vehicle (SSV) I have tested: the Can Am Commander. Its engine braking, comfort, stability and power delivery exceed all other machines this reviewer has tested. The suitably aggressive-looking Can Am Commander we tested during our annual HunterWhat’s good: ville duckshooting weekAwesome engine braking, performance, end was the 1010cc 4-stroke stability and comfort; clever deck setup. 2-cylinder V-twin liquidcooled Rotax powered model What’s not: in budget form. No flares on test rig, heavy steering. This machine impressed Verdict: everyone who drove, rode or I want one. even just looked at it. One guy said he wanted to go and buy another farm so he could have one; comparably to most other 600/700cc another traded his existing SSV on offerings in this guise with still adequate performance and heaps of low the following Monday. The Commander comes with down grunt. With the black key, it is either the 810cc or 1010cc Rotax just miles out in front, with stunning engine in two stages of specification. throttle response and performance. This is helped by adjustable susThe ‘poverty pack’ version we had is still well equipped, but came without pension, the machine giving a ride flare guard extensions (a must-have), as good as anything else I have tried, winch and half screen. The option list though a load reduces ground clearis long. The twin headlight setup looks ance, as on all independently sprung cool and the lights give good penetra- machines. That said, the tilting deck is big enough for a team of dogs tion and spread. The machine comes with three (we had 6 on) and will carry 600kg keys: we got two – grey and black. between the clever upper and lower Grey operates ‘work’ mode, limit- cargo boxes. Two tailgates give access to deck ing speed to 50km/h with restricted (60%) engine power. Torque is still and the boot, and the floor can be available in spades from the CVT removed for a bigger load area, this also helping lower the centre of gravtransmission. The grey key is “normal” and ity. We shoot ducks high up in a big restricts power to 60% and 70kmh and the black key gives the ‘full basin. It’s quite a climb to the lake Monty’, and more if you push the along 6km of farm tracks. So this

reviewer highly rates engine braking, especially for hill-country travel. The Can Am Commander has the best system I have tried, and even in high range in the transmission setting it has awesome engine braking, letting the machine idle down a knobby little spur where I wouldn’t dare take other machines I’ve tried. In low range the system works so well you have to apply throttle to keep things moving, even with a load and trailer. A grizzle is that the steering loads up when turning using power in AWD and when load transfers onto the front suspension, which is fitted with anti dive geometry. Power steering or a bigger steering wheel would help this. Even a cold, wet morning was made more pleasant by comfortable, adjustable bucket seats. The steering wheel is adjustable for height, and the pedal box is not offset, making for a comfortable driving position and easy getting in and out. Of course, I can be described as ‘vertically challenged’, but the big guys also found the cockpit a good place to be. The dash has rocker switches for the light dip switch (the lights are turned on using the key), AWD and sport function. A soft-shifting gear selector chooses park, reverse, neutral, high and low. The machine has no handbrake, which would be handy but, with the park feature, not essential. The passenger gets a decent glovebox and ‘hold-me-back’ handle for when things get hairy.

The Can Am Commander really performed when test driven during a duck shooting weekend.

VEL 3.15m VEL are the ideal New Zealand hill country discs due to their ultra short chassis with floating draft bar and drawbar. High specification of independent hydraulic front and rear cut angle adjustment puts Kverneland DVP ahead of the competition.

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Contact your nearest Power Farming dealer for more information or visit our website www.powerfarming.co.nz

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Rural News // june 5, 2012

82 machinery & products

Cool milking TEN COOLING fans installed by Jonathan Robinson in his new dairy shed at Cambridge are appreciated by staff and livestock. The ten 1m diameter oscillating fans line the walls around the milking area. Each has a high pressure water line with jets. As the fans run the water vaporises and a fine mist of water is blown

Taranaki Regional Council chairman David MacLeod presents the award to Chris Hartshorne, Plasback manager.

around the shed. “We have no problem with flies, I know it relaxes the cows and staff say it is a pleasure to do the afternoon milking,” says Robinson. He reports there is very little “messing” in the shed as the cows are so at ease. He believes the temperature is 3-4 degrees Celcius lower than outside the dairy because of the system.

Award for recyler THE PLASBACK recycling scheme run by Agpac Ltd has won an environmental award from the Tarankai District Council. The award, recognising sustainable farm practices, highlights performance in waste treatment and disposal, and environmental enhancement or protection. It was won with the help of farmers and contractors, the company says. Plasback’s was the first such scheme to gain Ministry for the Environment accreditation. It developed bin and liner segregation. Combined with on-farm collection it creates a simple, effective solution for farmers. About 1400 tonnes of plastic waste have been collected since the scheme began six years ago. Last year 44 tonnes was collected in Taranaki with Riverlea Contracting, Hinton Contracting and Moratti Contracting. Plasback also markets products made from recycled plastic: Tuff Board is a pliable construction sheet, and Tuff Deck made from recycled baling twine is for nonslip flooring use. The company wants more farmers to participate. Television ads featuring rugby player, radio host and farmer Richard Loe are helping, increasing awareness and understanding of the need to recycle. Tel. 0500 338 240 www.plasback.co.nz MS1232

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Rural News // june 5, 2012

machinery & products 83

GPS guidance for seeders and sprayers ENTRY-LEVEL and advanced GPS guidance for seeders, sprayers and harvesters will be launched by Croplands. Features include autosteering and automatic planter and boom section controls. “To help with the launch and to explain the details we will have on site Jason Willner, regional precision ag specialist, Raven Industries, Australia, and Stephen Jones, the

The antenna is a 10Hz Helix – “You need a quality antenna to ensure you maintain signal and the Helix is one of the best in this category,” says Small. Correction is provided through E-Diff, giving updated accurate info to the console without the need for a subscription service. Auto steering and section control can be an upgrade if required. Higher up the range is

Australian sales manager,” says Croplands upper North Island territory manager Greg Small. The entry level Cruizer II provides easy-to-use guidance. It is easy to install and has a 145mm high-resolution screen to suit farmers and contractors. This suits seeding, spraying and harvesting. A weather resistant model is available for open cab tractors.

Rats sent packing • One pair of rats and their offspring can produce 15,000 rats yearly. • Rats eat enough grain annually to fill a freight train 3,000 miles long. • Rats can gnaw through metal, lead pipes, and cinder blocks. • A rat can squeeze through a hole no larger then a 50 cent piece. • Rats spread livestock and poultry diseases. • Rats can survive being flushed down a toilet. • It is estimated that there are upwards of 100 billion rats in the United States alone. • A rat’s teeth will grow from 4-6 inches per year. • Rats can produce 8-12 young as frequently as every three weeks. • A rat can swim one half mile and tread water for three days. • A rat can jump off a five-story building unhurt.

(1996-97) at the University of New England, Armidale, NSW. Australian Federal Government funding helped to research, develop and initially export the products. Now they are sold in 10 countries. At least 7000 operate in New Zealand. Pest Free gained endorsement in 2007 as a

“food safe and effective rodent deterrent process” from HACCP Australian Pty Ltd under its Food Safety Accreditation System. Commercial units (effective to 1000m2) operate on New Zealand dairy and pig farms, and in livestock feed mills, showgrounds, etc. All models carry a 100%, 60 day money-back performance guarantee and a 2-year warranty on parts and labour. Price of the Pro model: $399.95 incl. GST and P+P. Tel. 09 833 1931 email: keating@orcon.net.nz

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• The perfect match when used together with a working width of 6.2m. • 2 speed gearbox for conditioner speeds of 900 or 600rpm. • Free Float Suspension allows the cutting unit to independently oat over ridges and contours ensuring close cutting performance in all conditions. • Folds into a vertical transport system for safer higher speed travelling. B&POW0008

A NEW rat ‘stopper’ from Australian manufacturer Pest Free suits small businesses and large homes. The new Pest Free Pro suits buildings up to 400m2 – double the area serviced by the familiar domestic model (200m2). It plugs into a normal 230V power outlet, working silently and harmlessly to ‘train’ rats and mice to exit and stay away from buildings. The technology is electromagnetic – a 50Hz pulse overlaid on the 1m-diameter field that naturally occurs around live power cables. The pulse switches on/off every 3 minutes so pests don’t get used to it. The resulting stress upsets rodents’ reproduction and nutrition; they must either exit and drink (to excess) or stay and dehydrate. Launched commercially in 1995 in Australia, it was proven effective during 2-year scientific trials

the Envisio Pro II, working off a similar platform as the Cruizer II with ease of use being the key. This gives the ability for remote support and and RTK signal. Says Small, “This unit is the next step in GPS for operators who want better accuracy and features. It also allows for multi-product control, an area we are seeing more inquiry for.”

Contact your local Power Farming Dealer. Call 0800 627 222 or see website for further details. www.powerfarming.co.nz

Rural News // june 5, 2012

84 motoring

Holden’s Colorado worth the wait Rural News motoring writer Ken Strugnell drives the new Colorado. FOR TOO long the new Colorado has been missing from the Holden line-up. Oh yes, we vaguely knew what it would look like and had been teased with the prospect of more power and a better engine than the previous 3L diesel. But where was it? Launched to the media late last year in Australia, it has taken an inordinately long time to cross the Tasman. While most other ute manufacturers have had new 2012 models racking up sales in New Zealand, Holden has been slow to release it here. Finally it’s here and Rural News was the first to drive it – the LTZ in Sizzle red, no less. At $61,990 it’s the top of the range, which includes six 2WD models, starting at $38,400 for a cab/chassis 2.5L, through nine 2.8L 4x4 models straddling three body styles and four spec levels DX, LX, LT, and LTZ. The LT and LTZ are available in 6-speed auto as a $2000 option while the rest get the manual 5-speed. So what’s the fuss about and is it worth the wait? With so much activity in the ute sector over the past year Holden has some real competition to face. Last year Holden loaned me a top spec LT Colorado for a few months and I covered at least 5000km on all road types, including towing. For the most part it was an excellent vehicle: economical with good road manners. It was a tad noisy from both tyres and engine, but my major concern then was the lack of low down power, particularly towing heavy loads. Now with 132kW at 3800rpm (up from 120kW) and 470Nm of torque, an increase of 90Nm, the quieter new 2.8L has addressed that issue. The lesser 2.5L produces 110kW and

350Nm. Holden has stolen a march on its competitors as the first manufacturer to offer 3500kg braked towing capacity. All models in the range come with air conditioning, ABS, EBD and ESC (stability control) as well as front and side airbags. Also standard are Bluetooth, CD, MP3 AM/ FM stereo with steering wheel controls and cruise control. With remote keyless entry and alarm, the Holden rides on 16-inch steels, or alloys on LX and LT models – a high spec level across the entire 2012 range. The interior is well laid out with storage everywhere, Finally the Holden Colorado is now available in New Zealand. including twin glove boxes, centre console box and map unimpeded progress. Gone pocket behind the seats, and pockets is the tyre noise, the engine in all doors. is well subdued and even A novel feature likely to be well when punted hard, quickly used in hot conditions is the cup/can responds without noisy proholders just below the side air conditest; it’s the 470Nm of torque, tioning vents that will keep beverage exactly the same figure as the cool in summer and warm in winter. Our LTZ’s interior was upholstered Ford/Mazda utes released All models come with air conditioning, ABS, EBD and ESC (stablility control), as well as front and side airbags. last year. Though down by in hard wearing cloth and boasted a 15kW on those 3.2L 5-cylinder fold down armrest in the rear seat. restrict the fun. Finally Holden has also liberated space engines, the 4-cylinder GM sourced With independent front suspenturbo diesel displayed the easy drivin the rear for three adults to enjoy a journey without complaint about thin ing nature that a thick wedge of torque sion and rack and pinion steering providing sharp quick responses and a supplies. squabs or backrests or leg/hip room. Wet steamy roads were dispatched lock of just over 12m, the Colorado The front seats are the place to be again exhibits ‘car-like’ behaviour. with the driver getting electric adjust- with ease despite the enthusiastic The independent rear has leaf springs driving. Gone are the familiar push ment – a ‘car-like’ feature. and all models will be rated to carry button 4WD controls, replaced on Climbing aboard the LTZ with 1000kg on the tray. The tray is 1534mm this model with a simple rotary dial 17-inch alloys and alloy sidesteps, it wide with 1122mm between the arches beneath the tiptronic gear selector. is clear that Holden has resisted the and 1552mm long on the double cab, Slipping into 4WD high on the move temptation to upsize and Americanenlarging to 1830mm on the space cab. tidied up any oversteer and made the ise this truck. It retains very similar The LTZ comes with a tonneau unladen truck respond even better dimensions to the outgoing model. cover, the roll bar is an option. without the electronics having to The first impression is of quiet

Long overdue and with buyers having placed orders sight unseen, the Colorado may be in short supply when it’s launched in time for National Fieldays. I suspect all will be forgiven as time goes by with the new Holden being better in the flesh than the photos portray. Class leading towing, huge torque from a willing, responsive engine and a totally revised and well-equipped interior, with all the safety boxes ticked, the Colorado has been worth the wait.

See us at the National Field Days

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Rural News // june 5, 2012

motoring 85 Love and victory on the rally circuit

Kia upgrades its workhorse KIA HAS upgraded its workhorse light truck and re-launched it as the K2500 in New Zealand. The new model gets a more modern and powerful 2.5L common rail turbo diesel engine to replace the 2.9L unit that was in the previous K2900. Despite being smaller, the new engine has 4.5% more power, now 96kW at 3800rpm, and 4% more torque, rising to 255Nm, available over a wide 1500 and 3500rpm band. The new engine drives through a 6-speed manual transmission, in place of the previous 5-speed, helping reduce fuel consumption by 2% to 9.9L/100km. Same cab and chassis structure as before, but the K2500 can be distinguished by the Kia tiger nose grille. It also moves to 15-inch front wheels

that improve ride and steering turn-in whilst retaining the twin rear wheels that suit load-carrying. The larger front wheels make no difference to the

K2500’s 10.04m turning circle. The loading tray (3110 x 1630mm) has hinged sides and a tailgate that can be dropped for easy loading and unloading. As before, a refrigerated box

body version is available to order, plus now two new-model variants including a box body and walk-through box body. Safety features on the K2500 are upgraded, with ABS braking and a driver’s side airbag now standard. And when the truck is carrying a heavy load, the driver can now compensate by adjusting the headlight beam using an in-cab switch. The model also includes reverse warning sensors, handy for delivery vehicles. Cab specification level is raised with Bluetooth for hands-free mobile phone operation, and controls for the audio system in the steering wheel. Air-conditioning is standard, along with power windows, remote central door locking and a central storage box with cup holders.

VICTORY IN the Rally of Otago has taken Richard Mason and his co-driving wife Sara into the lead of the National Rally Championship. The Masons, from Masterton, won both heats of the event in their Subaru WRX STI to finish over two minutes in front of Chris West with Emma Gilmour completing the podium in third place. But the pair did not have things all their own way. Chris West (Timaru) pushed the Masons hard on Sunday’s heat and led going into the event’s longest stage of 45km, when he had to stop and change a puncture, losing nearly two minutes. “There were some crazy fast sections on the Saturday stages,” said Mason. “It was a real challenge to drive at ten tenths, even if the overall average speed was not too high.” The Masons established an early lead of 35 seconds when they won the three Friday night stages, which they extended to 53 seconds by the end of Saturday, finishing in front of West and Rotorua’s Sloan Cox. “It was a good fight with Westy today

and the result has put us right back into contention in the championship,” said Mason. On her home event, Gilmour had a series of niggling problems – stalled engine in a ford on Friday night, inconsistent brakes and an intercom that cut out – too only finish fourth on Saturday in her WRX STI. On Sunday she drove to make sure of more finishing points as she had lost too much time to challenge Mason and West for the major overall positions. She finished Sunday’s stages just over a minute behind Mason with West third for the day after his puncture.

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Rural News // june 5, 2012

86 rural trader FLY AND LICE PROBLEM?

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Some years ago,Quad Bike manufacturers were unhappy about roll bars being fitted to their bikes. Fitting them insinuated that their quads were unsafe without them. So they produced a computer generated video featuring a dummy riding a quad with a roll bar. Being a dummy, it couldn’t hold on, lean, stand or think. Consequently, the dummy was tossed around like a rag doll, hitting everything. From this flawed test, it was reasoned that roll bars were dangerous and should be taken off! Go figure! They didn’t mention bull bars, brush bars, handle bars or the bikes bulk. Amazingly, nobody questioned them. Meanwhile, in Australia, a clever little Aussie engineer was taking a fresh look at the problem of being crushed under a quad. Many models later and exhaustive safety tests by the Queensland University and the Quadbar was born. It was small,light,fitted all quads and even in a backflip, tended to land on its side. Better still, ACC and OSH were in the loop. Since 2011, over 150 farms in NZ have begun using Quadbars and manufacturing is now done in Orewa. The best part is that lives have been saved in that time and I feel pretty good about that. I recently learnt that when you are crushed for some time, toxins build up in your blood and can cause a heart attack and possible death. Keeping that bike off you seems a good idea. Stuart Davidson. For a Quadbar, call me, Stuart Davidson, Owner of Quadbar NZ. owner of Quadbar NZ, on 021-182 8115. Email sales@quadbar. co.nz or for more info go to

www.quadbar.co.nz

09 912 2555

FIELDAYS DEALS ON NOW! CALL US TODAY

Manufacturing since 1962

ROLL BARS ARE BACK

See us at Fieldays Site G92

595

+GST

Special Fieldays r June F fo $100 OF

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

Rural News // june 5, 2012

rural trader 87 CRAIGCO SENSOR JET DEAL TO FLY AND LICE

60 Litre & 100 Litre Teat Sprayer S/Steel pressure tanks

• Cost Effective

DOLOMITE

NZ’s finest BioGro certified Mg fertiliser For a delivered price call... 0800 436 566

• Complete Package • Unbeatable pricing • Performance Guaranteed

Quality

FARM BOOTS KIWI MADE FOR 3 GENERATIONS

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

❤ COUNTRY & CITY

contacts (N.Z. LIMITED)

Join our successful & confidential service

P 06 835 6863 - www.craigcojetters.com

Rubber Safety Matting • ATV Carrier Mats • Exit/Entry Areas • Calf Trailers • Horse Floats & Trucks • Weigh Platforms • Bale Mats • Comfort Mats for Wet & Dry Areas • Utility Deck Matting

GLOBAL STAINLESS

Phone 06 272 8544 globalstainless@clear.net.nz

• $45.00 delivery cost in New Zealand • Also high pressure s/steel water cylinders

For all single, separated, divorced and widowed people. Over half our members find ‘someone special’ or their lifelong partner.

For Information Pack, contact... Country & City Contacts 0800 287 437 or Ph: 03-387 0794 or see our website www.countrycontacts.co.nz

Phone: 0800 80 8570 www.burgessmatting.co.nz

CRAIGCO SENSOR JET DEAL TO FLY AND LICE • Cost Effective

ALL PRODUCTS HAVE 3YR WARRANTY

Visit us at Mystery Creek Fieldays 13-16th June. SITE 017

Tussock Soft Toe Triple/Single Hob Nail, Reverse Kip. This boot is designed for heavy duty use on high country farms and over alpine terrain. This boot will handle tough environments. With an upper constructed from reverse kip leather, a tough heel counter for better ankle support and a full bellows tongue for greater water tightness. A leather insole and triple bend leather runners, with a stitched and screwed construction and heel and toe plates. Triple or single Hob nails. Tricounis available with tungsten tipped teeth. Tussock made to order only. Sizes 4-15 including half sizes.

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

FOOTWEAR MANUFACTURERS

• Complete Package • Unbeatable pricing • Performance Guaranteed

P 06 835 6863 - www.craigcojetters.com

Be Safer With Duals

clean | safe | secure Diesel Tanks

on Duals for more traction, stability, flotation, towing power, versatility.

Clic Wheel Systems Ltd, Rotorua

Ph/Fax 07 347 2292

www.clicdualwheels.co.nz

STOP RATS NESTING IN HOMES, BUILDINGS, MACHINERY

• Pest Free puts 50Hz pulse along power cables • Rats and mice stress, dehydrate, exit • No harm to humans, pets, computers, etc. • Models to suit buildings/plant 200sq.m to 1000sq.m • NSW-made, patented, science proven • Used in ten countries • Two-year warranty • 100% 60-DAY MONEY-BACK GUARANTEE STOP RATS with Pest Free Buy with confidence from authorised rural sales agent N + J Keating, 70 Rimu Street, New Lynn, Auckland 0600. Tel. 09 833 1931 (cell 021 230 1863); email keating@orcon.net.nz

TWO WAYS TO ORDER/PAY:

1) POST: cheque to N. Keating telling us the product(s) you want, plus your name, address and telephone number. 2) INTERNET: direct credit ASB 12 3039 0893559 00 (your surname as reference) PLUS telephone or email us, saying which product(s) you want.

Pest Free Domestic for homes, garages, etc to 200sq,m – $159.90 incl. GST + post. Pest Free PRO for large homes, small offices & factories, etc to 400sq.m – $399.90 incl. GST and post. Pest Free Commercial for dairy sheds, grain mills, factories, etc – $1800 incl. GST + post.

Optimum clean fuel Easy and safe to fill and dispense Fully Compliant Minimise fuel theft Bunded

Also manufacturers of Waste Oil Recovery Containers, SCR Stations for Adblue and Transportable Tanks

Visit our website for a full list of products and features

Smart Fuel Storage

0800 473 226 www.sebco.co.nz

Proudly made in Ashburton, New Zealand

We've been around since your dad's dad used to warm his feet in cow pats.

In 1905, a group of farmers came together believing they could give all kiwis a better deal. Now over 100 years later, we’re still 100% NZ owned and the country’s largest mutual insurer. And we plan to keep it that way. Ask around about us, or call for some advice on 0800 366 466.

FMG0200

That’s what works out here.