Rural News 21 Aug 2012

raising awareness

waipaoa station

Taratahi brings together suppliers and health and safety inspectors to share knowledge of LUVs. page 43

Five young applicants will soon be selected to attend a prestigious farm cadet course. page 34-35

Rural NEWS to all farmers, for all farmers

august 21, 2012: Issue 521

tribute to ag leader Looking back on Jim Pringle’s contribution to NZ’s farming sector.

page 25

www.ruralnews.co.nz

Price rise ‘genuine’ A SIZEABLE lift last week in global dairy prices is a genuine increase, says BNZ economist Doug Steel.

Compared to the previous GDT auction this month, the currency has been steady at US80c. “So this price has been a genuine lift with little change in currency movements,” he told Rural News.

The GDT trade weighted index rose 7.8% in the third-biggest rise in two years. Milk protein casein rose most – 15.4% to $US5351/MT. Anhydrous milk fat rose 14%. Most commonly traded skim milk powder and whole milk powder lifted 7.3% and 7% respectively.

While rising prices are a good sign, the important thing is the fading of previous volatility and downgrades. Comparing prices over the previous three months, the TWI is 16% up from mid-May. But Steel points out prices are still 12% lower than a year ago.

Crippling drought across the US partly explains the rise, he says. But there may be more to come. “Price rises have come through as we had expected and we’re still waiting for a decent lift.”

On the 2012-13 payout, Steel believes a downgrade may still be on the cards. The Fonterra board meets at the end of this month, and the 7.8% lift last week won’t be enough to allay fears of a downgrade. It just keeps the 2012-13 forecast on track for a milk payout of $5.50/kgMS and a dividend payout of 45-55c/kgMS. – Sudesh Kissun

Ruckus over RUC’s pete r bur ke

ROAD USER charges (RUCs) are causing bewilderment following a review by another group in MOT. The ministry says if a tractor exceeds the 40km/h speed threshold the owner will be liable to pay RUCs. One industry commentator says though he “has no problems with the 40km/h speed limit, the problem is that to buy RUCs you are required to have distance-based measuring equipment, but tractors don’t have odometers and you can’t fit hub odometers to tractors.

“So as this proposal stands if you go to buy a road user license and they ask you for your odometer reading and you don’t have one you can’t buy RUCs.” But Transport Minister Gerry Brownlee is standing fast on the MOT

proposal, telling Rural News that contractors or farmers who drive over 40km/h for commercial purposes should pay RUCs like everyone else.

The no-odometer argument doesn’t wash because he understands most large tractors have GPS and can record mileage.

“The reality is there are… very large tractors that can go at speeds

over 40km/h and which seldom go off the farm. But when they do they are restricted to [40km/h] which is reasonable for free use of the road.

“Second, if they are part of an agricultural contracting business and they regularly use the roads they have to organise a way to pay RUCs if they drive faster than 40km/h. We’re not going to have a separate fee system on a nomi-

nated basis…. That’s what we’ve just gone away from.”

Brownlee disputes industry claims that hub odometers can’t be fitted or will fall off.

This was said years ago when RUCs were introduced and it’s never happened apart from during an occasional accident, he says.

• More page 5

mouthwatering...

Federated Farmers Meat and Fibre chair Jeanette Maxwell prepares to tuck into a McDonalds Serious Lamb Burger, one of two lamb products the fast food chain launched last week. “If lamb works [for McDonalds] here, it may go on menus in other countries… the prospects are mouthwatering,” says Maxwell. Full story: p13.

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news 3

issue 521

www.ruralnews.co.nz

Transpower digs in and rew swallow

News ������������������������������ 1-17 World ������������������������� 18-19 Agribusiness ����������������� 20 Markets �������������������� 22-23 Hound, Edna ������������������� 24 Contacts ������������������������� 25 Opinion ����������������������� 24-28 Management ����������� 29-36 Animal Health �������� 37-42 Machinery and Products ������������������ 43-50 Rural Trader ���������������� 51 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 80,767 as at 30.06.2012

LANDOWNERS’ HOPES that a commissioner’s ruling in Western Bay of Plenty would draw a line under their near-nationwide battle with Transpower have been dashed.

The national grid operator is taking an appeal to the Environment Court over the WBOP district council’s decision to refuse Transpower’s bid for extended buffer zones under the lines.

The appeal announcement leaves landowners asking how much more taxpayers’ money the SOE is prepared to throw at what they see as an infringement of their property rights and an unnecessary duplication of existing legislation.

“I’d like the minister to have a look at this,” Bay of Plenty dairy and kiwifruit farmer Steve Bailey told Rural News.

“He needs to be… asking if this is a productive use of taxpayers’ money, going down the litigation way.”

His thoughts are echoed by South Canterbury farmer Miles Anderson,

who has led landowners’ represen- able discontent out there.”

In announcing it would appeal tations to Waimate District Council, another district where Transpower is WBOP’s decision, Transpower said its seeking buffer zones through district view is that commissioner David Hill’s decision “fails to give effect to the plans.

“The minister needs to sort National Policy Statement on ElectricTranspower out. They’re out of control ity Transmission, which is Parliament’s clear direction on how the Resource I reckon,” says Anderson.

Transpower told Rural News (June Management Act should be applied to 17) that it is seeking buffer zones this issue.”

Transpower chief executive Patrick through district plans in every disStrange maintrict it has infrawithout structure and “The minister needs to tains rules on develthat five districts sort Transpower out. opment under have already done that. Landowners They’re out of control.” lines “we put at risk our ability to hoped WBOP’s maintain the grid for New Zealanders.” decision would work as a test case.

While landowners and others say the Bailey says he recognises Transpower’s right to take the matter to the Envi- Electrical Code of Practice, (NZECP) ronment Court, but that doesn’t mean already provides sufficient restriction it’s the right thing to do. “I would have on development near power lines – a thought somebody like Transpower point commissioner Hill endorsed – would have listened to our concerns Transpower says it “does not control and those of other landowners, given subdivision and doesn’t address issues we are effectively their silent partners at the planning stage.”

It also maintains the issue isn’t propin the national grid. There’s consider-

erty rights, but inappropriate development under and around transmission lines. “It’s akin to requirements landowners already [face] for such things as appropriate setbacks from boundaries for certain building activities or removal of significant native trees.”

But landowners say forcing them to apply for consents for activities within the proposed buffer zones adds cost for them, and for district councils, and effectively gives Transpower consenting authority.

Anderson wonders whether there’s more to it than Transpower is admitting. “There’ve got to be more reasons for what they are doing because the reasons they are presenting aren’t sound, and the commissioner recognised that.

Is there another agenda they don’t want to publicise?”

Preparing the SOE for a float is one possible motive, he believes.

Energy Minister Phil Heatley’s office declined to answer Rural News’ questions as to whether he is discussing the issue with Transpower.

Kaipara debt sounds warning to councils – Feds pam tipa

THE KAIPARA District Council’s request for commissioners to take care of its $80.7 million “financial hole” illustrates why pragmatism is needed about water quality issues, says Federated Farmers Northland president Matt Long.

It should spark national debate about what environmental steps are affordable, Long says. And it also shows why Federation Farmers is so supportive of local government reform. The council has turned to the Government “in the face of an mob of angry ratepayers refusing to pay.”

Kaipara farmers were facing rate rises of thousands or tens of thousands on bigger farms, increases of about 40%, says Long. Sectors such as dairy faced the biggest rises, including a targeted roading rate following a drop-off in government funding for rural roads.

But Kaipara’s main problem is $60 million spent on a sewerage system for a community with a permanent population of about 1000. The council had budgeted for just $20m.

“It is something you are likely to see more as people [aspire to] extremely good water quality. People will have start being pragmatic or there will be an avalanche of similar things happen-

ing around the country.”

Commissioners, due to be appointed in September, cannot make the debt problems go away, but farmers hope they will provide a better plan for resolving the problems, Long says.

“I see this as the only possible solution in an impossible situation and there is some poetic justice in the Government helping clean up a fiscal disaster it had a hand in creating.”

The sewerage treatment project was based on the assumption of growing numbers of beach houses and lifestyle blocks providing plentiful development contributions, but the global financial crisis destroyed the idea.

Long says the council was naive and possibly mislead by staff accounting, but the role of central government should be kept in mind. For ten years central government has pressured councils to provide all sorts of services while at the same time reducing the funding it provides, Long says.

“As a result councils all over New Zealand are borrowing huge sums to pay their way, often to meet the strongly worded requests of central government to build newer, more environmentally friendly infrastructure.”

Long says a fear of this kind of bankrupting financial burden “keeps farmers awake at night”.

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Rural News // August 21, 2012

4 news No. 8 wire mentality outdated and shallow p e t er burk e

A PARTNER in KPMG has slammed the much-loved New Zealand concept of ‘No 8 wire’, saying it’s reactive and is not what’s needed if the country is grow its innovation and technology.

Ben van Delden told Rural News the No 8 wire concept is to see a problem that needs an immediate solution and typically the innovation is rapid and often for a knee-jerk need.

“What we need to move this country further down the path is a sustained pipeline of innovation, of knowing what we want to come out the other end. Not this hope and faith that when there’s a problem great Kiwi minds will find a No 8 solution. We want to take more control of our destiny by bringing more planning to investment in and outcomes of innovation.”

Van Delden admits No 8 wire is part of our culture and that we’ve been completely proud of it. “Some great things have come of it, but where is the potential? It’s improvisation. There is a strong need to attract further investment into the agri foods industry. But who’s going to invest in the hope that one day you might come up with a solution to a problem that you don’t know exists?

“What investors need is confidence that there is an eco system that’s built up

around the universities, businesses and leaders to invest in R&D that’s going to produce a pipeline of great outcomes.”

Van Delden argues that New Zealand needs to encourage more people from overseas to study and teach at our universities, such as happened during the successful Colombo Plan of the 1960s when many overseas students studied here. These people are now leaders in their countries and think well of New Zealand.

New Zealand must learn to accept Chinese investment in New Zealand and rid itself of some of the xenophobia that emerged during the selling of the Crafar farms.

“A country like New Zealand can’t afford to show signs of a perception of racism or xenophobia .We simply have to get our heads around that, to rid ourselves of the fear of Chinese investors, particularly now they are our secondlargest export market. Look at the huge amount of American investment in the agri sector that quietly comes through.”

Van Delden says the next big issue for New Zealand is having enough good business leaders for the future, dependent on making a plan to bring home expatriate talent during critical times.

It’s good that New Zealanders go overseas and gain experience, but we need them back.

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Revolution to the way we farm andrew swallow

THE LATEST regional council plan to give effect to the National Policy Statement for Freshwater Management will cause “a revolution in the way we farm,” says Federated Farmers’ national board member responsible for water policy, Ian Mackenzie.

That said, Environment Canterbury’s land and water regional plan, notified August 11, is a lot better than it might have been, he says. “The good thing… was very good dialogue with the regional council to get the plan to where it is,” he told Rural News.

The bad thing is, he adds, is farmers will be limited in what they can and can’t do on their farms. “As such it’s going to create a revolution in the way we farm. We’re going to have to think differently about what we can and can’t do.”

Mackenzie says the default position of the plan, a 20kg/ha nitrogen loss limit as calculated by Overseer, is “pretty scary” but the plan allows for industry bodies to compile “look-up tables” of loss limits for different activities to replace that.

Similarly catchment zone committees will in due

course set limits by consensus for catchments.

“It enables farmers to retain control to a certain extent, as long as they perform to a higher level than in the past.”

A short-term glitch is that until those tables are compiled any land-use change which, as calculated by Overseer, would increase losses will be prohibited across much of the region. “It’s effectively a

Ian MacKenzie

and Ashburton.

“The limit setting process is absolutely criti-

“The good thing… was very good dialogue with the regional council to get the plan to where it is. The bad thing is farmers will be limited in what they can and can’t do on their farms.”

moratorium on land use change.”

The look-up tables and catchment limits must be completed by 2017.

On a catchment level, Mackenzie says it is critical farmers understand the implications and engage in the process. Insufficient representation could encourage environmentalists in pushing “aspirational” limits that shut down intensive farming and cripple the economies of towns such as Timaru

cal and we are lucky that Canterbury allows it to be done by the locals.”

Plans of one form or another to give effect to the NPS on Freshwater Management are at various stages of implementation in every region of the country. Some, notably Otago, are further ahead than others.

ECan commissioner Peter Skelton says its plan represents the first time water quality from various sources – urban and rural

– has been comprehensively considered in Canterbury.

“I am sure the appropriate relationship will be found between economic development and the interests of the environment for Canterbury’s long-term benefit…. The plan will be easy to understand and administer and will reduce the number of resource consents required.”

Skelton says the plan is aimed at the most challenging areas for Canterbury’s long-term economic and environmental success, particularly water quality. A 40 working-day window for public submissions on the plan ends October 5, with hearings late 2012 and early 2013.

“In the meantime we are continuing to work with our stakeholders to inform them about the plan and let them know what it might mean for them,” says Skelton.

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news 5

Common sense prevails on rural vehicles’ rules

Associate Minister of Transport Simon Bridges says the proposed changes will give farmers the flexibility to operate.

The other change based on the 40km/h rule means that only an inexpensive warrant of fitness will be needed for tractors travelling public roads at speeds not exceeding 40km/h. Other changes to rules on the size of vehicles will cut farmers’ compliance costs.

Bridges says the new rules are designed to give farmers flexibility to operate, given the industry’s uniqueness and the huge effects of weather on what tasks can be done and when. Previous regulations dealt primarily with long-haul trucks and trucking.

“This helps farmers and the rural community by creating a simpler system and reducing costs and hassles, getting a better fit between the rules and their needs. In the past the rules have been something of a mismatch. Now they will be quite literally able to make hay while the sun shines.”

One key element is the definition of an ‘agricultural vehicle’. Present rules cause confusion about who is covered by them, and there was not a proper alignment between farmers and rural contractors. This will change for greater clarity.

MOT has put huge effort into consulting farmers and others in the rural sector, hence widespread support for the proposals, Bridges says.

Further consultation will be offered before the rules are officially ‘made’ and come into force in 2013.

Gulf between dairy farms PETER BU RKE

THE HEAD of the company poised to buy the Crafar farms has himself, with two other Chinese business partners, bought a piece of prime Auckland real estate.

Jiang Zhao Bai and his partners have paid $35 million for 31.77ha at Gulf Harbour, some understood to be waterfront, at Whangaparaoa Peninsula. They bought it from Gulf Corporation Ltd (in receivership).

The Overseas Investment Office (OIO) recently approved Jiang, a Hong Kong company called Shanghai Zendai Property, and a local businessman, Terry Lee, to buy the property.

They have formed Top Harbour Ltd and plan to spend up to $550 million over the next eight years on a new development said to include 1000 homes, business centre, shops, cinemas and possibly a hotel/convention centre and marina.

Jiang and Zendai each hold 45% of the shares, Lee 10%.

Approving the sale, the OIO says it meets the ‘benefit to New Zealand’ criteria by creating new jobs, enhancing domestic services, adding investment for development services and preserving historic heritage.

Jiang is the chairman of Shanghai Pengxin and one of China’s wealthiest individuals, reportedly worth $800 million. Partner Terry Lee, a friend of Jiang, has represented Shanghai Pengxin in various capacities in New Zealand.

Meanwhile, no date has been set for finalising the

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AFTER YEARS of complaints and debate, MOT has at last changed the rules on agricultural vehicles, enabling farmers and rural contractors to do their work properly at no risk of prosecution under outdated, inappropriate laws.

The changes, announced by the Associate Minister for Transport Simon Bridges, distinguish between farm vehicles and highway trucks.

Farm vehicles had been shoe-horned into trucking rules, he says.

Foremost are changes to work time rules that formerly ‘throttled’ the hours farmers or contractors could work at planting or harvesting.

These rules had for years bugged farmers and contractors.

Under the proposed new law, provided a vehicle (mainly tractors) travels no faster than 40km/h, the work time rules will not apply. This activity will instead be regulated by health and safety rules.

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Rural News // August 21, 2012

6 news

US boot camp tune-up p e t er burk e

A WEEK of high-powered brainstorming was expected to heighten ideas of collaboration among 25 of New Zealand’s leading chief executives from the primary sector. With them was Primary Industry Minister David Carter.

This august group has been tucked away at a ‘boot camp’ at Stanford University, near San Francisco. They represent the dairy, meat, seafood, horticulture and viticulture sectors.

No ‘industry good’ organisations are there but it does include the chief executives of MPI and NZ Trade and Enterprise.

The private-sector initiative cost about $500,000, mostly paid by the companies themselves, but including a grant of $100,000 from Agmart.

The ‘champion’ of the ven-

“The purpose of the boot camp is to work out where we can collaborate, how we can unlock value and how we can be transformational but work within the New Zealand primary sector.” ture is New Zealand Merino chief executive John Brackenridge.

He told Rural News before leaving that the group includes small and medium enterprises – entrepreneurial companies, including some large ones. About 80% of New Zealand’s food exports are represented.

“The purpose of the boot camp is to work out where we can collaborate, how we can unlock value and how we can be transformational but work within the New Zealand primary sector.

“We’re not seeing this as a publicity thing; we’re far

more interested in talking about things we can do after we’ve had the discussion. We then want to decide what we can do and when we are going to implement it.”

Brackenridge says they chose Stanford because it is recognised as the premier business school in the US. “It’s centred in Silicon Valley and… a lot around that ‘ecosystem’… could have direct application within New Zealand… in terms of design and understanding collaboration.”

Primary Industry Minister David Carter has praised the boot camp initiative as

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Primary Industries Minister David Carter says the boot camp is an excellent opportunity for the primary sector to collaborate.

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not often we get a powerful group like this around the table and I’m confident of a positive outcome.”

Minister stays on PRIMARY INDUSTRIES Minister David Carter expects after the boot camp to meet with US agricultural organisations including the Tri-lamb group and the US Cattlemen’s Association.

“These meetings will further strengthen the New ZealandUS bilateral relationship and give our two countries the opportunity to canvass a range of issues in the primary industries policy area.

“It’is an opportunity to highlight the excellent collaborative work we already have with the US though the Global Research Alliance on agricultural greenhouse gases.”

Carter says he’s looking forward to discussions on the mutual benefits to be realised through the Trans-Pacific Partnership FTA currently under negotiation.

“The TPP is important to New Zealand’s trade future and this visit will provide the opportunity to take political level readings on its progress.”

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Dan Loughnane says the new software applications are part of a suite of products designed to help farmers capture the benefits of Electronic Identification while simplifying the process of transferring livestock information to NAIT. “Gallagher has a reputation for backing up our high quality products with excellent customer support.

It’s all about making these products easy to use, and helping our customers to get the maximum benefit from them.”

EID. Choose A or B. Gallagher brings you two ways to transfer animal information from your Gallagher Readers and Scales to NAIT, depending on how you prefer to do it.

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Rural News // august 21, 2012

news 7 Less than a month to suggest NAIT changes FARMERS AND others in the rural sector have until early September to make submissions on proposed regulations on minor infringements and data access relating to NAIT. The proposed regulations sit under the legislation that established NAIT, passed by Parliament.

Chris Baddeley, MPI readiness and response policy manager, says aside from the punitive aspects of the regulations, the main focus is to educate farmers in their obligations. The main reason for non-compliance at first instance will be that farmers don’t fully understand the rules governing NAIT. “But if people are aware

Deal bodes well for investment PETER BU RKE

BUSINESS BETWEEN China and New Zealand will now expand as a result of the sale of the Crafar farms to the Chinese investment company Shanghai Pengxin, says the executive director of the NZ China Trade Association, Graham Kearns.

The Court of Appeal recently rejected a bid by the Sir Michael Fay-led consortium to stop the sale. The Fay group won’t appeal this decision, paving the way for the deal to go ahead. Iwi involved in the Fay consortium are still evaluating the judgment, but it’s understood the chance of them appealling is slim. Kearns told Rural News some Chinese investment decisions in New Zealand were put on hold pending the outcome of the court ruling.

“Had the sale not gone ahead it would have had an impact on relations between China and New Zealand.

There was already a lot of hesitancy over investment because some Chinese investors don’t quite understand the way the New Zealand courts operate.

“Many Chinese investors have held back business decisions waiting for the response. Some people in Chinese government circles were concerned about this decision and why [the legal action] zeroed in on China and not on investments by many other countries, and by companies investing in dairy companies in New Zealand.”

Kearns says much of the opposition to Shanghai Pengxin was a combination of historical factors, a fear of the unknown and a bit of xenophobia. He says China has money to invest in New Zealand industries, not just agriculture. And he points out Chinese investors are different from western investors.

“Chinese are long-term investors. Whereas westerntype companies look for return on investment within a three-to-five-year time frame, Chinese are looking for generational investment plans. They are looking to secure supply for their families for the long term. Dairy milkpowder and the downstream products are critical to the growth of children in China and that’s why they invest in security of supply.”

Kearns says Shanghai Pengxin’s decision to have Landcorp Farming as a joint-venture business partner was not surprising. Most businesses in China are controlled in some way by the state and they would feel “comfortable” with having in Landcorp a business partner linked to the New Zealand government.

The 40th anniversary of New Zealand and China establishing diplomatic relations is an important celebration for the Chinese, Kearns says. “Many Chinese delegations are now coming to New Zealand, looking to invest here a significant pool of money. Unfortunately most of the opportunities in New Zealand are too small for the big companies, but certainly the smaller companies are looking for smaller investments. I expect to see a lot more Chinese delegations here in the next three months.”

The China-New Zealand relationship results from work over 60-plus years, Kearns says. Some great “free thinking” by New Zealanders towards China came when many countries were shying away from a relationship. But ties between China and New Zealand are very strong.

• More page 9

of their obligations and are not doing what’s required of them, then it escalates from a verbal warning to a written warning and then the issuing of an infringement notice which could result in a fine of up to $150.

“An infringement could be failing to register themselves on the NAIT scheme as a person in charge of

animals, failure to tag and/ or register their NAIT animals and failure to register the movement of their animals either to another property or to a freezing works. Essentially it’s about failing to file information in the NAIT system.”

The small fine reflects MPI’s belief that people who fail to comply at any

stage will be quickly picked up; it will be almost impossible for someone not to be picked up somewhere in the system.

The proposed regulations deal with minor offences; major ones such as mis-using personal information or deliberately swapping tags on animals for some perceived advantage are embodied in the

NAIT Act and penalties are far greater.

The other proposal out for consultation relates to access to the NAIT database. Baddeley says there is a proposal that would allow researchers to ask for permission to access the database to produce further information that may benefit the primary sector.

A proposed industry panel

would consider requests for information.

Submissions on the regulations close September 5, then Baddeley and his team will analyse the feedback, possibly make changes and prepare a paper for Cabinet approval. Rural News understands there is general political support for the current proposals.

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Rural News // august 21, 2012

news 9

Green light for Crafar sale PETER BU RKE

TWO MONTHS could pass before Shanghai Pengxin takes possession of the Crafar farms and up to a year before its management partner Landcorp has full control.

With the Court of Appeal rejecting an attempt by the Sir Michael Fay consortium to stop the sale to Shanghai Pengxin, the long-running saga appears to be nearing its end.

A spokesperson for the consortium told Rural News it would not appeal.

It also seems unlikely an iwi group will appeal to the Supreme Court given the wording in the judgment from the Court of Appeal.

Irrespective of this,

little action is likely until the lapse of the 20 days allowed for the filing of an appeal. Shanghai Pengxin is likely then to indicate it will settle and has a further 30 days to do so.

The farms will be owned by a wholly owned subsidiary of Shanghai Pengxin called Milk New Zealand Holding Ltd. Below that will sit the 50/50 joint-venture company involving Landcorp called Milk New Zealand Farm Management Ltd. Landcorp chief executive Chris Kelly says he’s delighted with the latest judgment from the Court of Appeal. Plans are well in hand to take over and manage the farms but he says there are some limiting factors.

“Because of the time delays that have gone on, the receivers have signed up the existing sharemilkers for another year so they are in place until the end of May 2013,” he told Rural News.

“We will take over the oversight management of those farms and keep those existing sharemilkers in place. During the year we will [talk] with them about whether they want to work for Landcorp or move on. So by the end of May 2013 we’ll be in a position to take over all the staff as well.”

Kelly says a special team in Landcorp will look after the farms.

The receivers have also employed staff to look after the farms, one of

whom is a former Landcorp employee.

“We’ll look to those staff in the first instance and see if they want to switch from working for the receivers to working for us and if they do we’ll take them on board. In any event we have our own staff available.”

Once Pengxin takes ownership of the farms Landcorp will start spending some of the $16 million Pengxin has set aside for upgrading the properties provided this doesn’t interfere with their day-today running.

“Our immediate priority will be to check that all the compliance issues are ok – making sure all the effluent ponds are as they should be and that sort of

stuff. Then we’ll start regular upgrades of the farms including fencing, subdivision, water, re-grassing, fertiliser – all the sorts of things you do when you upgrade farms.”

Landcorp chief executive Chris Kelly says he is delighted with the Court of Appeal ruling approving the sale of the Crafar farms to Shanghai Pengxin.

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Hitting the ground running PETER BU RKE

CHINESE COMPANY Shanghai Pengxin is delighted with the Court of Appeal decision on the sale of Crafar farms. Hoping the decision marks the end of the legal battle, the company wants to put on gumboots, get on the land and start running the farms, says spokesman Cedric Allen.

The running of the farms will rest with Milk New Zealand Farm Management Ltd, a 50/50 joint venture between Shanghai Pengxin and Landcorp Farming. Each will supply three directors, overseen by an independent chairperson. The company will run the overall ‘milk business’,

including managing the sale of surplus farms.

Allen says while the company is effectively locked in to supplying milk to Fonterra until the end of the 201213 season, it plans to settle on a company or companies to process its milk for the following season.

“We are putting together a team to deal with the processing side of the business to see if we can finalise an agreement with a processing company to produce the sort of products we want. We may do a deal with Fonterra, or another processing company, or with two different processing companies. Alternatively we might set up a new joint venture as we can’t own

more than 50% of a processing company.”

Allen says as soon as it gets the go-ahead from its lawyers, Shanghai Pengxin will sign the deal with the receivers. “We are itching to get going.”

Meanwhile Michael Stiassny, a partner in KordaMentha, the receivers for the Crafar farms, told Rural News he’s also delighted with the outcome of the Appeal Court case.

“This has gone on far too long.

We would like to complete our job, which is to realise the assets for the best price possible,” he says. But KordaMentha must wait until the appeal period lapses.

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Rural News // august 21, 2012

news 11 Wellington turkeys make NZ look Mickey Mouse PAM TIPA

THE IMAGE presented by the Overseas Investment Office (OIO) and the Crafar Farms situation made New Zealand look like “Mickey Mouse turkeys” to German company BayWa, says Geoff Hipkins, the new chief executive of Turners & Growers (T&G).

As BayWa went through processes of buying the major shareholding in T&G, Hipkins says its impression of the OIO was of a huge government department “allpowerful and telling the world what to do”.

“They didn’t believe me when I said it is actually four people stuck in the bowels of the Land Transfer Department, snowed under because they had this issue re Crafar Farms; that’s why [BayWa’s] case had been delayed,” Hipkins told the HortNZ conference in Auckland.

“They all looked at me and virtually said to a man, ‘b****’. They couldn’t believe our foreign investment was controlled by such an august group.

“Then you throw in the Crafar farm situation, where you have the judiciary changing the rules of the game with five minutes to play. They couldn’t understand that situation.

You try to explain that to people wanting to spend hundreds of billions in this country.

“We really looked like Mickey Mouse turkeys and that is the only way I can explain it. The question was asked, ‘Is it because

we are German?’ That was quite literally the thought going through the BayWa executives’ minds.”

BayWa now controls 73% of T&G. Two other important shareholders were Baytel, the Equadorian Bonita banana supply company, an historical shareholding which has stood the test of many generations; and new entrant Scales Corporation with 10%. About 4.3% is spread around 650 individual shareholders.

Hipkins says T&G employs 1300 and its main products are apples, tomatoes, citrus and kiwifruit.

The domestic market was important and dominant as the company’s revenue source, and would remain so, he said.

BayWa were “Fonterra size” with a turnover of almost 10 billion euros (NZ$16-17 billion).

The company was the largest pipfruit supplier to the German retail sector and the largest supplier of organic pipfruit.

“Their facilities are literally state-of-the-art and reek of high investment,” he said. The company had longstanding relationships with the significant food retailers in the European market, and part of their move into New Zealand was the need to command shelf space for 12 months of the year.

They saw the potential to increase T&G earnings by applying some of their efficiencies and the potential of the two key apple varieties Jazz and Envy.

“But also the name Enza, the power and residual of the Enza brand interna-

Single-desk exporting: we’re soaking in it T&G HAD in the last few months established a degree of cooperation with Zespri “that I don’t think people would believe,” says Geoff Hipkins.

“It has been outstanding particularly in international markets. Hopefully cooperation will continue to be a theme.”

While in principal T&G still opposes a singledesk export marketing system for kiwifruit “we realise it is a fact of life. By continuing to challenge that system legally and in a litigious sense, what are you actually doing? Really only reducing the price you return to your growers. The legal firms will thank you but ultimately [their fees] are just reducing returns to growers.

“It is a matter of realising that’s the game you’re playing. NZ Inc has some power and we have to believe in that, so let’s try to work cooperatively.”

tionally is significant. We should all thank the Apple and Pear Board who spent millions on the promotion internationally.

“BayWa also saw T&G being active in the Asian markets now and an opportunity to grow on that. They saw the T&G balance sheet being somewhat lazy in that we owned and own a tremen-

dous lot of land and buildings; they looked at the worth if we sold the land and buildings.”

A platform of BayWa business has been longterm relationships with growers, and that model was being reinforced to T&G in moving forward, Hipkins said. “We are looking at a consolidation particularly in the apple

industry, and that flows on to consolidating logistics and distribution and getting the grower as close as possible to the final point of consumption.”

T&G’s Geoff Hipkins says the OIO process and Crafar farm situation makes New Zealand look Mickey Mouse in the eyes of international investors.

Rural News // august 21, 2012

news 13

Mouth-watering prospect for NZ lamb producers Serious burgers

SUDESH KISSU N

THE NEW McDonalds ‘Serious Lamb Burger’, launched last week in New Zealand, could soon find itself on menus around the world – a great move for Kiwi producers, says Beef + Lamb New Zealand chief executive Rod Slater.

He doesn’t see the lamb burger overtaking McDonald’s AngusPure beef burger but says the potential is huge. Since August 2009 McDonald’s has bought 2 million kg of AngusPure beef patties. “[The lamb burger] has the potential… of the New Zealand beef burger. We could soon be supplying lamb patties to other parts of the world,” Slater told Rural News.

McDonalds New Zealand is partnering with B+LNZ, which endorses the new lamb products.

Two years development went into the lamb burger.

The McDonalds move pleases farmers. Federated Farmers Meat & Fibre chairwoman Jeanette Maxwell says it adds value

to the lamb farmers produce.

“As a sheep and beef farmer, I know the positive impact McDonald’s involvement with AngusPure has had. It has greatly raised its profile as a premier product.

“This is where things get truly exciting. If lamb works here it may go on menus in other countries, the Middle East and Asia especially.

“New Zealand is already a major supplier of beef as part of McDonald’s global supply chain and it is not a dream to believe lamb could follow.

The prospects are mouthwatering.”

Only lamb shoulder cuts – no mutton – are used in the lamb patties.

The meat is sourced from North and South Island farms. Key suppliers include Silver Fern Farms, Anzco and Affco. The patties are made at the Anzco plant, Waitara.

Wilson says research shows 82% of respondents in New Zealand like lamb but 65% say cost precludes

Aussie sheep sector sluggish GOOD RETURNS for Australian sheep farmers are showing signs of easing.

According to Meat and Livestock Australia, the combination of price and good seasons driving expansion for two years in the Australian lamb and sheep industry eased during the first half of 2012. Extra lambs and softer export conditions are bringing prices back from historically high levels, it says.

Releasing the Meat & Livestock Australia midyear sheep projections this month, chief economist Tim McRae says the toned-down outlook should come as no surprise.

“Lamb and sheep prices over the last two years were unprecedented, driven by lower Australian and New Zealand supplies and restocker demand, and fuelled by excellent seasons in most areas of Australia.”

After falling to its lowest level in almost 100 years at the tail end of the drought, the Australian sheep flock is now expanding, said to have risen 2.6% in 2011-12 to 75 million head.

Despite the lamb price fall, overall returns for slaughter lamb producers in 2012 and 2013 should continue favourable, underpinned by reasonable prices and higher turnoff rates.

Overall Australian lamb exports in 2012 are projected to increase 11.2% to 178,000 tonnes swt, and a further 3% in 2013.

Export values look set to remain stable or decline modestly, as the high Australian dollar, subdued global demand and increased competition from New Zealand impacts returns for Australian exporters.

them eating it.

“Lamb is iconic to New Zealand but sadly has become unattainable for many Kiwis due to its

Rod Slater

price. McDonald’s is excited to be adding this option to its menu, making lamb products available at an affordable price.”

As of last Wednesday 160 McDonald’s restaurants were offering two lamb products: the Serious Lamb Burger and a Lamb Snack Wrap. Another lamb product will be added soon.

THE S320-521ERIOUS Lamb Burger is McDonald’s largest-ever burger – a lamb patty seasoned with rosemary, oregano and garlic, plus egg, beetroot, lettuce and aioli on a 120mm wide wheatgerm bun, paper wrapped.

The Lamb Snack Wrap includes a half patty of lamb, lettuce and aioli, in a tortilla wrap.

Rural News // August 21, 2012

14 news Fertiliser co-ops grow turnover, less profit ANDR EW SWALLOW

NEW ZEALAND’S two main fertiliser suppliers, farmer-owned cooperatives Ravensdown and Ballance AgriNutrients, have announced solid profits.

Ballance made an operating profit of $77.3m on $915m turnover in the year to May 31, while Ravensdown made $51.8m from

$1.1 billion. For both turnover was up, but profit down compared to 2010/11 (see table).

Ballance supplied 1.44mt of fertiliser, a 3% increase , while Ravensdown, including its Australian operations, supplied 1.56mt, a 4.7% increase.

Ravensdown’s Australian sales were up 16% but

took a loss of $1.8m. That follows losses of $1.6m in 2010/11 and $11.2m in

2009/10, but Ravensdown chairman Bill McLeod remains positive about the

various trans-Tasman ventures.

“This is only our fourth

Co-ops compared: results to May 31, 2012* (2010-11 result in brackets) Ravensdown

Ballance

Revenue

$1.07bn (+15% from $933m)

$915m (+20% from $760m)

Operating profit

$51.8m ($71.6m)

$77.3m ($85.9m)

Total distribution

$53.5m ($58m)

$47m ($49m)

Distribution/t

$40.48/t

$44.29/t

Rebate/shares split

$15.10 rebate; $25.38 in shares

$40/t rebate + 10c/share dividend

* Preliminary results. Final figures with annual reports due September.

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year of Australian operations and to date these farmer-owned operations have been funded by Australian shareholders’ equity. Because our business is about scale efficiencies and we’re seeing more customer numbers and tonnages being ordered, the prospect for profitable growth is strong.”

McLeod told Rural News Ravensdown’s Australian shareholders collect a rebate and share bonus on a par with their New Zealand counterparts, except for some who qualify for a premium rebate having been among the vanguard to sign up to Ravensdown. However, such premium rebates are only paid when certain sales targets are met – which they weren’t last year in Western Australia, he notes.

During the year $40.5m was spent on logistics and infrastructure, mostly at Ravensdown’s production plants: Awatoto near Napier, Hornby in Christchurch and Ravensbourne in Dunedin. New stores were opened at Balclutha, Otago, and Mata, Northland. McLeod says physical and chemical testing regimes have been tightened following some quality issues, notably in Australia and on cropping farms in New Zealand.

“We have been rationalising our suppliers and selecting those who can meet our detailed specifications.... We continue to negotiate with multiple suppliers to secure value for shareholders.”

Ravensdown’s profit figure includes a pending insurance payout of $10.9m for earthquake damage at Hornby and $3.6m already received

from insurers for urgent earthquake-related repairs.

Ballance’s results also include a substantial insurance provision: $33m following the fire at its Kapuni urea plant last August.

Chairman David Graham says without the fire and an extended maintenance turnaround later in the year profit could have been $20m higher.

Ballance spent $62m over the year, including scheduled maintenance and improvements at Kapuni, new and upgraded service centres, and information technology designed to improve interaction with customers.

Chief executive Larry Bilodeau says it’s “delivering on our strategy to expand our complete nutrient management business and have a growing portfolio of resources, products and people to support growth in our economically crucial agricultural sector.”

That said, he told Rural News there are no plans “whatsoever” to follow Ravensdown into animal health or agrichemical supply.

Ravensdown says it is now the third-largest drench provider in New Zealand and is working hard to keep prices competitive in that industry.

“Our animal health, agrichemical and nutrition business units stand on their own feet financially,” says McLeod.

Meanwhile it’s still “early days” for Ravensdown’s Septemberannounced alliance with Canterbury forage, brassica and cereal breeder and wholesaler Cropmark.

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GREG CAMPBELL, currently chief executive of Ngai Tahu Holdings, will Greg Campbell take on the same role at Ravensdown when incumbent Rodney Green retires in December. The cooperative’s board says Campbell was selected because of his international experience and role in making Ngai Tahu a successful and vibrant business.

“These achievements, plus many other positive attributes, make Greg the ideal person to continue with the exciting developments within Ravensdown that our current chief executive Rodney Green has instigated during the years in which he has lead us,” says chairman Bill McLeod.

Stage One

Stage Two

Most people say that heifers don’t pay for themselves in their first lactation.

471 milksolids for two-year-olds is pretty exceptional.

How to earn up to

d a e h r e p e r 500 mo e first lactation

$

in th

Increase in LIC herd lactation averages

Case Study:

Whole herd

• 137 Freshstart® reared heifers entered a South Waikato herd of 562 MA cows in spring 2011. Although the heifers were reared on the Freshstart® programme the remaining herd had been conventionally raised.

• These first lactation heifers had a 97% conception rate and out produced the remaining herd on average by 7% in volume, 6% in milk solids and 9% in protein.

Results - Obtained from LIC records and contents verified with four herd tests.

(excluding FF Heifers)

Milk

Fiber Fresh first lactation heifers

Protein

189 (kg)

205 (kg)

Fat

254 (kg)

267 (kg)

Milksolids

444 (kg)

471 (kg)

What this means: • It is well accepted that first lactation heifers normally produce 80-85% of their adult herd mates. (ref: Pickering J 2001).

• In this case these heifers produced 25% above what would normally be expected.

• In cash terms a 25% gain over the expected norm would mean 94kgs extra milk solids.

© ICON 0055 FIB

eg: 94kgs at 2011 / 2012 est pay out of $6.55 kg/MS = $615 per heifer approx

7% more

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0%

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Rural News // august 21, 2012

news 17

Follow the ‘golden arches’ model pa m t i pa

NEW ZEALAND should learn from McDonald’s to market its primary produce in emerging markets, says the chairman of Rabobank NZ and Air New Zealand, John Palmer. And we should acknowledge Asian nations have been trading for thousands of years and will be brighter and better at it than us.

To say New Zealand was haphazard in its marketing approach was probably too generous, Palmer said at the HortNZ conference. But he also chal-

lenged HortNZ to look at whether aiming to be a $10 billion industry by 2020 was “aspirational enough”.

Palmer said we did have good entrepreneurial initiatives and people with industry endeavour and energy. “But it is poorly coordinated and in strongly emerging markets it will be to our detriment.”

Palmer said McDonalds was acknowledged to have the best market position in the world.

“What they do – and what we must do – is intensively research the market,

Determining the correct spend FOR 20 years at least and probably longer we have failed to invest enough in R&D for the primary industry sector, says John Palmer.

“We cannot continue to expand internationally unless we have R&D both as the background of that and at the forefront of developments.”

Primary industry is responsible for 16% of the R&D national spend in New Zealand – about half the OECD average and way less than Australia.

“That is not sufficient and we must as a nation do something about that.”

Palmer said when we see 12% of the R&D spend in the environment and 16% in primary industry it does raise the question whether we have the value equation right. “The issue for governments is to ensure we focus on the value to New Zealand rather than the political reaction to how we make those decisions.”

the factors in the market, the location issues, the changing demographics and how and where they should promote themselves despite the fact they have this fantastic product.

“Before we entrench ourselves in low leverage in those markets, we have got to have a different approach and that doesn’t start with a fabulous product. It starts with understanding the market and the cost and value chains in the market and how they are changing.”

Palmer said we need to admit most Asian nations are instinctive traders, some have been trading for thousands of years and we are just starting. “So we should accept they will be much smarter, much brighter and much better prepared than us. We need to acknowledge entrepreneurs who have already trodden that path.

“Rather than talk about the quality of our product and how we grow more of it, we should start in the market, specifically China and the China regions, to understand supply and value chains in those markets. Who makes decisions, how decisions are made, what you have to do to influence decisions and potentially where you can invest to get some market leverage which you will never

get from Auckland or Central Otago.

“What we need is the development of a ‘New Zealand Incorporated’ operationalcountry capability to provide infrastructure for New Zealand exporters or importers. It should not be entirely dominated by the operatives in those markets who will take more share of the value chain unless we do something to protect it.”

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John Palmer says New Zealand should learn from McDonalds about how to market its primary produce to emerging markets.

Rural News // August 21, 2012

18 world

UK farmers tackle milk price cuts SUDES H KISSUN

A COALITION of UK dairy farmers has agreed on a 10-point strategy to tackle a milk price crisis facing the industry.

The Dairy Coalition says its new strategy will help to secure the longterm future of the industry and will focus on exposing bad practices, boosting farmers’ role in the supply chain and ensuring the supply chain is transpar-

ent and fair.

The coalition is also including cheese in its campaign, calling for ownlabel supermarket cheese to be British.

NFU dairy board chairman Mansel Raymond says the first priority of the Dairy Coalition is to see a fair and functioning market place for the UK dairy industry.

“All farmers should receive a fair and sustainable milk price, one which

at least covers their costs to produce milk. This is the only way we will be able to ensure shoppers have the choice of British dairy products on supermarket shelves.”

Raymond says it’s clear the UK dairy market has failed. Market highs have not been passed down to the farm gate, he points out. “All milk buyers must develop their own appropriate and transparent milk procurement and

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Plan for producer organisations to rebalance negotiating power in the milk supply chain.

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Bramshall dairy farmer Andrew Whitehurst brought one of his cows to a protest march last month.

pricing models that are equitable for all parties and cover farmers’ production costs.

“The British dairy industry can have a bright

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future if every part of the dairy market works to capture market opportunities here and abroad. We have a growing demand for fresh, British, quality dairy products from a growing world population and we must be in a place where we can respond.”

UK farmers groups last month mobilised members and staged protests UK-wide to protest price cuts of between 2.5 and 3.5c/L from August 1. The protests paid off when major processors deferred or cancelled their plans.

The UK’s largest dairy

co-op, First Milk, backed down first, its chief executive, Kate Allum, saying it has a responsibility to farmers to show leadership and remove uncertainty.

“On that basis, we have decided to immediately withdraw the planned August price cuts [resulting from] moves by our liquid customers. This has been a turbulent time for the whole industry, but unless we immediately grasp the nettle, the progress we are seeing right now will be short-lived.

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spoken with one voice over the last few weeks, and they’ve made it clear they reject the existing model where they are price takers and favour working together to gain an equal seat at the negotiating table. It is therefore critical the whole dairy supply chain now looks to develop better structures and relationships for the short, medium and long term.”

Arla Foods, Robert Wiseman Dairies and Dairy Crest also dropped plans to cut the farmgate price.

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Rural News // august 21, 2012

world 19

US harvests wilts as drought bites a l a n h a rm a n

THE US Department of Agriculture’s latest forecast for the national corn and soybean harvests reflects what farmers have been seeing for the past two months: vanishing prospects for a good year as their crops wilt from lack of water, a Purdue University specialist says.

The USDA’s National Agricultural Statistics Service predicts corn growers will harvest 35.4 million ha, down 2% from its June estimate and the lowest level since 2006.

Despite planting the largest number area in corn in 75 years, growers are forecast to produce 10.8 billion bushels, down 13% from 2011. A bushel (unit of volume) of corn weighs 14.5kg; a soybean bushel and a wheat bushel weigh 27.2kg.

Soybean growers, also greatly affected by the drought, are forecast to produce 2.69 billion bushels, down 12% from 2011.

Purdue Extension agricultural economist Chris Hurt says the USDA’s August crop production report paints a bleak picture as Indiana and other eastern Corn Belt states suffer through the worst drought since at least 1988.

The report says Indiana’s corn crop will average about 247 bushels/ha, down from 360 bushels in 2011. The state’s soybeans are projected to yield 91 bushels/ha, down from 111 bushels a year earlier.

“These are remarkably low numbers, especially the corn,” Hurt says.

“Indiana is the worst of the major production states in corn production.

We knew that early on.

It started here and then spread to the west.”

The industry had expected bumper crops in Indiana and across the

Midwest when farmers began planting earlier than normal this spring, in then favorable weather – unseasonable warmth and little rain. Forecasts were for a corn crop of 14 billion bushels, nearly one billion more than the previous record.

But conditions soon deteriorated for crops as the heat intensified and fields got little rain over the next three months.

Hopes for a bountiful harvest evaporated as the drought worsened weekly, preventing many corn and soybean crops from developing enough to produce strong yields.

By early August, 73% of the state’s corn crop and 53% of soybeans were in poor-to-very-poor condition. Because of that, USDA estimates Indiana’s 2012 corn crop will yield nearly 38% below trend yields.

“This is the worst departure from trend yields in Indiana in at least 75 years,” Purdue Extension corn specialist Bob Nielsen says.

Even with short corn and soybean crops, Hurt said growers could still find themselves in a profitable situation, depending on final yields and crop insurance coverage. “”Corn revenues are up 64% from what we expected in the spring and soybean revenues are up 24%. Some growers might have an opportunity to take advantage of the higher prices.

“Crop insurance will be another factor. We estimate 65-75% of Indiana’s corn and soybean crops are insured. Those compensation dollars will be large this year.”

And wheat production, 85% complete by July 29, remains largely unaffected by the drought and is forecast at 2.27 billion bushels, up 13%.

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

A surreal-looking soybean field near Dayton in Tippecanoe County, Indiana, is a victim of the 2012 drought.

Purdue Agricultural photo by Tom Campbell

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Rural News // August 21, 2012

20 agribusiness

Head winds ahead pa m t i pa

THE BANKING industry should accept a good deal of responsibility for New Zealand’s level of agricultural debt and for lending beyond what was sensible, chairman of Rabobank and Air New Zealand, John Palmer says.

And he sounded a warning to all New Zealand farm businesses during the HortNZ conference in Auckland: farming businesses must be prepared for 25% falls in commodity prices in uncertain times with raised risk; 15% falls in production; a 2-3% increase in interest rates; or a combination of all of these as they manage their businesses.

“And we should be prepared for at least two significant events over a 2-3 year period,” Palmer said. Generation of cash surpluses and strong balance sheets were absolutely vital.

“As an apple grower myself and someone who has spent a lifetime in the horticulture industry, that has been incredibly difficult to do. A problem inherent in the apple industry is that it has lived for the last five years at least on eating individual growers’ capital and that cannot continue. There are stresses in the industry which are already causing some businesses to fail and I suspect more still to come.”

Agricultural debt in New Zealand “is not out of control but very significant,” Palmer said. “[It] doubled between 1998 and 2008. [Agriculture] did not double

John Palmer says while agricultural debt in New Zealand is not out of control it is still very significant.

revenue and it did not double profit or cash surplus. The industry is more highly leveraged as an industry than is wise or sustainable given the inherent risks attached to the industry.”

Palmer said the banking industry should accept a good deal of responsibility for the level of agricultural sector debt and the willingness to lend beyond what was sensible in a burgeoning market. “We know that now and, where we have impaired our balance sheet, we know we are suffering the consequences of that.”

Palmer said Rabobank is primarily

an agribusiness and will support clients through the cycle.

“The outcome of the current financial crisis and the change in international banking regulation has a significant impact on all banks weak and strong,” he said.

“Banks under the new standards will be required to hold more liquidity and… more capital. What that means for individual clients globally is that the banking margins that were skinny up to 2008 have changed; banking margins in future will rise and credit will be harder to access.”

New Zealand’s Mr Potato calls it a day EXPECT TO hear plenty more from Potato NZ business manager Ron Gall before he steps down in December.

After 22 years involvement with the industry he is happy to hand over to the new Potatoes New Zealand board, but intends to have plenty to say about investment in R&D and marketing before he goes.

“The primary industry sees R&D as an expense, not as investment. We need to ramp up investment manifold,” he says.

Gall says successful high-tech companies put 30-40% of their budget towards R&D but the primary industries’ commitment is minimal.

“The formal R&D potato spend of $300,000 a year or 2% of farm gate value is appalling.”

Gall began in 1990 with VegFed, Horticulture NZ’s predecessor, and soon afterwards became product manager for potatoes. The potato industry is now worth $550m annually, with $150m at farmgate level, he says. Gall has seen a lot of consolidation down to the present 230 growers and a reversal in the make-up of their market. In the early 1990s the split would have been about 60% fresh, 30% frozen and 10% seed.

Now it’s about 60% frozen thanks to the growth of the fast food industry. In 1994, 64 tonnes of frozen pota-

toes were exported – last year the figure was 72,000 tonnes.

Yet the fresh market is identical to what it was in 1994, he says. “We haven’t done well in this arena. We are treating it as a commodity. We haven’t had the vision to develop our own IP, with extras and new products.

“This is where we can add value; we’ve got to have that vision. We need that investment in science and education. There also needs to be a more cooperative approach in marketing potatoes and that goes for all horticultural products.”

He says in Asia you will see inmarket point of sale promotion from the American potato industry extolling the virtues of its own products.

“We need to spend that money; we’ve got to get the same support from our exporters to help grow the market.

“The potato industry has huge potential and opportunity. The potato has more vitamin C than an orange and more potassium than a banana, so it’s a health food and we need to sell it like that.

“In 20 years we might be growing it to sell for extracts for health.” He says this fits well with global trends for human health products including supplements for older people. But it is always difficult to get funding for research to take a product forward.

Winter slows farm sales THE REAL Estate Institute of NZ (REINZ) says there were 55 more farm sales (18.3%) for the three months ended July 2012 than for the three months ended July 2011.

Overall, 356 farms sold during the three months to July 2012, compared with 406 in the three months to June 2012 – 50 sales fewer (-12.3%).

1,439 farms were sold in the year to July 2012 – 50.4% more than during the year to July 2011. The annual sales

volume is now at its highest since April 2009.

The median price/ha for all farms sold in the three months to July 2012 was $17,955; a 22.6% increase on the $14,649 recorded for the three months ended July 2011. It is also an increase of 2.2% on the $17,565 recorded for the three months to June 2012.

“Grazing and finishing properties continue to attract the attention of buyers across the country, with sales

of horticultural blocks showing an increase in Hawkes Bay and Marlborough,” REINZ rural market spokesman Brian Peacocke says.

“Given the seasonal workloads on farms at this time of year the number of sales has eased back. But compared to this time last year the number of sales is 18% higher.”

Peacocke says there is increasing enquiry from local and offshore buyers for dairy properties.

Ron Gall, who sports a potato tie, says we need more in-market promotion and R&D spend.

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Rural News // August 21, 2012

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

























































































































































 













Last Year

This Year











 

 

 























  



 









   



 

  













 











  

 



































 

 



























       







 











 

 

 

 



























  

90%





       

70%



60% 

  



  





 







  

  

 

80%





 



 



 





 















 







 







   

















 







 





 

 



   

























 







 





  

 





 



 

 





 

 



 

 

 



Beef Market Trends













 

 

 



























 

  







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TRACTA39733-RN

‘WE’LL GIVE YOU THE BEST TECHNICAL SUPPORT FOR LASTING RESULTS.’

Your Hatuma Field Representative, Ballance Technical Sales Representative and Altum Field Consultant.

Rural News // august 21, 2012 

Beef  Shortage of local trade cattle With the NZ dollar at current levels, farmer operating prices have a weak undertone. Ideally, meat processors would like to be taking a bit out of export prices but with the cattle kill tapering off further, this will be hard to achieve. 300kg cwt bull was $4.30/kg on average last week while prime steer is $4.25/kg. Local trade prices are firm on $4.30/kg, driven by the lack of local trade cattle.

Any rise in local trade prices is likely to push export prime higher as competition increases for prime stock. Beef export prices in the South Island held steady last week.

300kg cwt bulls were earning $4.00/kg and similar weighted steers were going for $4.00-4.30/kg. Local trade cattle have generally been obtaining 5-20 cent premiums on export ox dependent on region with processors happy to grab any that surface. Word on the street suggests many farmers are waiting for $4.50/kg, seeing there are very limited margins being made at present given the high buy in prices last year.

US cow-calf operators struggle In the US, it is apparently the worst year for cow-calf operators since the late eighties according to Steiner Consulting Group. Farmers have been forced to offload stock due to the drought and with grain prices soaring, margins are being squeezed. US end users continue to buy hand to mouth, especially with talk of big cow numbers coming to market. However, many cow-calf producers still remain reluctant to sell and are trying to ride out the drought. But hay stocks are depleting and if widespread rain doesn’t come soon, we could see a rush of cows come to market in late September and October, which will clash with when NZ supplies begin to ramp up.

Lamb Lamb prices caving in Export lamb prices are beginning to bow down to pressure. Last week, North Island prices eased to $5.51/kg on average (net). While bobby calves are being killed, there is little pressure to secure stock, though come September this could change. However, meat processors have made it clear they will focus on managing capacity rather than falling head over heels for lamb. In the South Island, export lamb prices have already been falling, with prices easing to $5.57/kg on average (net) last week. Subdued overseas demand, currency concerns and tighter overseas imported pricing levels are making margins untenable.

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Long term outlook for lamb solid   The outlook for new season lamb appears to be getting   more pessimistic by the week. At this rate, farmers will be        lucky if farmer operating prices hit $6.00/kg peak season. Once the lambs start to flow, meat processors will look at getting prices back as quickly as possible, to recoup losses  and realign margins. The recent drop in lamb prices has been fuelled by     higher supply and subdued demand from the EU. Once the supply glut is    overcome, there are plenty of factors in favour of lamb. Global supplies     are short and with growing incomes worldwide, demand and prices are     expected to be solid. Even though prices will likely remain well below     2011’s unprecedented levels, ABARES anticipates lamb prices to remain     favourable for at least the next five years. The OECD-FAO also suggests     prices will remain firm for their outlook period to 2021.

Venison Chilled venison season off to a slow start At the start of the year, the outlook for the chilled venison season looked fairly bright. Winter contracts were released in the late $8.00/kg range which set the tone for the market. However sluggish demand from overseas, largely due to the European crisis, and a strong NZ dollar against the Euro has continued to hold prices back.

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Best product knowledge.

Only Hatuma have been advising farmers how to get the best cost effective results using dicalcic phosphate for 50 years. Now with an exclusive partnership with Ballance and Altum, that knowledge and experience is growing, meaning you’ve now got a bigger Hatuma Dicalcic Phosphate team to get you the better results forever.

So if you’re looking for the correct advice on dicalcic phosphate talk to the team with the best knowledge by calling Hatuma on 0800 80 65 65 or contact your local Ballance Technical Sales Representative or Altum Field Consultant.

A PARTNERSHIP FOR FUTURE GROWTH

Rural News // August 21, 2012

24 opinion editorial

edna

An end to a sorry saga THE COURT of Appeal decision to throw out the Sir Michael Fay-led challenge to Shanghai Pengxin’s bid for the 16 Crafar farms will no doubt be greeted by more claims about New Zealand’s sovereignty being sold to China.

But that is patently ridiculous and smallminded.

Fears that China is gobbling up New Zealand land are misplaced. Official figures show that Americans, Canadians and even Liechtensteinians have bought far more land in this country than the Chinese. Figures released earlier this year by the Overseas Investment Office show that of the 872,313ha sold to foreign interests over the past five years, only 223ha were sold to Chinese. The sale of 16 Crafar farms to Shanghai Pengxin will still result in Chinese owning only a combined area of about 8000ha of New Zealand.

While the gnashing of teeth, and barely concealed xenophobia, from opponents of the sale will eventually subside, the fears of foreign ownership of New Zealand land will continue as long as we remain small-minded in our worldview.

As Finance Minister Bill English pointed out in a recent speech, like it or not foreign direct investment (FDI) is an important source of funding for growth for a nation that doesn’t save enough to meet those needs internally. “As a small country, we naturally rely on FDI to help us achieve economies of scale, and for access to ideas and consumer markets.”

Investment from overseas has played a central role in the development of New Zealand dating back to the 1800s, including selling flax and timber and later frozen meat, wine, then banking and finance, English said.

Meanwhile New Zealand remains a small trading nation in a much bigger world. That bigger world has a lot to offer us and every time we restrict foreign ownership we also reduce our access to the best knowhow the world has to offer.

Any restriction also means restricting people’s rights to buy and sell freely – as for every foreign buyer looking to buy there is a New Zealander looking to sell.

As one commentator rightly pointed out, “When it comes to private businesses, assets and land it is odd to think “we” own it. On the day before a New Zealand farm is sold to a foreign owner, I didn’t own it and I had no right to say how that farm should be used. The day after it is sold I still don’t own it and I still don’t have any rights to say how it is used.”

“With four years of my effluent pond training, you’ll blitz them in Rio, Edna!”

the hound Pull the other one YOUR CANINE crusader chuckled at claims by the anti-TAF camp over the sudden resignation of Colin Armer from the Fonterra board. Its main mouthpiece, Leonie Guiney, says Armer’s departure is the loss of the last “co-operatively minded” leader from New Zealand’s biggest company as it is about to be exposed to merchant bankers and the sharemarket. This old mutt’s not sure how “co-operatively minded” it is to spit the dummy and walk away because you missed out on getting the chairman’s job.

Save

That’s ok THE HOUND notes how of the sale of Crafar Farms to Chinesebacked Shanghai Pengxin brought out a lot of criticism from various political parties. Loud among the critics was the Green Party which haven’t raised a peep about London-based Craigmore Sustainables owning nearly 10,000 ha of land in New Zealand. Surely the Greens’ deafening silence on this matter would have nothing to do with Craigmore Sustainables being the brainchild of South Canterbury businessman Forbes Elworthy, who also happened to be one of its key funding contributors last year.

Pass me that hypodermic YOUR OLD mate gagged on his biscuit recently at an item on National Radio’s science programme. A Frenchspeaking scientist in West Australia, theorising that plants respond to sounds and, ended up saying plants are conscious and aware. From this nugget of truth your canine friend infers, logically, that the animal-welfare gurus will soon be joined by a new breed of ‘welfarists’ concerned to anaesthetise sentient maize plants about to go up the chutes of 250hp choppers. Now, how long would it take to give the needle to 10ha of standing maize?

Labour pains YOUR CANINE crusader hears the Labour Party has sent its struggling leader David Shearer – cruelly dubbed ‘The Invisible Man’ – back out to the rural heartland to try to lift his and his party’s paltry ratings.

The Hound suggests Shearer – though he has a good rural surname – has about as much chance of gaining rural voters’ support for Labour as Kim Dotcom has of winning an Olympic gold medal in gymnastics, since Shearer’s party promotes policies such as higher taxes, ETS for agriculture and gay marriage.

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THE HOUND was intrigued to note Federated Farmers’ website is emblazoned with Transpower’s logo flashing regularly. Now your old mate is as commercially minded as the next dog, but even he would think twice about taking money from an organisation such as Transpower. They’ve upset farmers up and down the country with a proposed land grab for extending buffer zones under transmission lines. Maybe this explains the muted, weak response from the Feds in protesting the abovementioned land grab!

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Rural News // august 21, 2012

opinion 25

Contribution to NZ agriculture learnt on the rugby field

at the same time playing 30 first-class games for North Otago.

In 1961 Maheno won the Cititzens Shield as the premier club side in North Otago. At various times Pringle served the Maheno Club as secretary,

Federated Farmers and in 1989 elected to the Otago Regional Council where he served six of the nine years as vice-chairman.

I like to think my good rapport with Pringle developed while he chaired PPCS and Ravensdown.

The key was not to be fooled by his affable country-boy manner. He told me in the early days, the 1980s, that if I played straight with him we’d get along fine.

During this time Ravensdown attempted

Rugby instilled in Jim Pringle the strength of character that gave him his determination, understanding of teamwork and skills of leadership he often demonstrated in farming politics, local body government and the world of business. president and patron. He was also selector/coach of North Otago provincial team. As my mate said, rugby was the Pringle training ground.

In his first move into local politics he was elected district member of the Waitaki County Council, becoming chairman in 1975. In the late 1980s he was elected president of North Otago

RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 3855, Shortland Street, Auckland 1140 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ........................................... Ph 09 913 9632 CONSULTING EDITOR: David Anderson .......................................Ph 09 307 0399 davida@ruralnews.co.nz

a takeover of Southland’s phosphate manufacturer Southfert. The courts ruled such a move would take out too much competition.

The other expansion was with PPCS, the target the North Island meat processor Richmond.

What should have been a quick, tidy exercise dragged on for seven years, finally going to the

Privy Council which ruled in favour of PPCS. In retirement Jim Pringle became a staunch supporter of the Wool Advancement Group and its efforts to redirect some Wool Board funds back to farmers. Once the battle was won he was invited to become a director.

Pringle said his father was a farmer who loved and excelled in the corporate and political world. It was nothing for him to work on the farm all day and attend meetings at night.

And he knew how to have fun. I once wrote a column suggesting PPCS annual meetings were increasingly difficult to get into, with would-be attendees who didn’t look like PPCS suppliers running the risk of a strip search.

At the next PPCS meeting I attended I was confronted by Pringle and present chairman Eoin Garden who said I didn’t look like a supplier and would have to be searched if I wanted to stay.

I’m still not sure what a PPCS supplier looks like, but offending contraband was discovered on my person – two pens, a pad and a camera. I was allowed to stay.

Jim is survived by his second wife Daphne and children John, Mark and Linda. His first wife Rosalie died 20 years ago.

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WINNING RUGBY teams thrive in a disciplined environment; Jim Pringle’s career held fast to that belief. Pringle died on July 27 aged 77.

As a former chairman of both PPCS (now Silver Fern Farms) and Ravensdown Fertiliser, he had a stellar career that began in the 1950s on the rugby fields of North Otago.

There he quickly came to realise the value of disciplined teamwork.

Adding to those values was a dedication to cooperative ideals.

Under Pringle’s guidance PPCS and Ravensdown underwent huge expansion. The approach owed much to the principles learnt on the rugby field, backed up by the ‘iron fist in the velvet glove’ – something learnt early in his career.

I remember Jim Pringle correcting a mistake I made, saying he was a front-row prop.

It seems he in fact played on the side of the scrum where his speciality was terrorising the opposition halfbacks.

I didn’t know Pringle in his rugby days, but a mate who did said his time with the Maheno Rugby Club was where it all began.

The club had for years struggled as tail-enders, but this changed with Pringle as captain, a role he played from 1955-1961,

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Rural News // August 21, 2012

28 opinion

Buying votes in Fonterra? caro l i n e gi l b ert

IF YOU want to purchase the right to one vote within Fonterra, you can do so for $4520.

Purchasing rights within Fonterra will from now be easier thanks to TAF. Without knowing it, the acceptance of TAF has also enhanced the role of markets within the cooperative to allocate all things, including those things we traditionally placed non-market values on. But importantly, we didn’t arrive at this state

through a deliberate choice. To unify the cooperative, we must now look at how we arrived here and whether this is in our long-term best interests.

To investigate how this happened, consider this: should votes within Fonterra be subject to market share – tradeable and therefore viewed as private property, or instead seen as a civic responsibility to the cooperative, and therefore an obligation of membership?

This is actually a ques-

Markets should have limits within the cooperative. Markets promote inequality and corrupt the non-market value of the things they allocate. tion about the appropriateness of markets without limits within the cooperative. But why should we worry that we are moving towards a cooperative in which everything is up for sale?

For two reasons: one is about inequality, the other is about corruption.

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Consider inequality: larger farmers who have more money invested in the cooperative should have a greater say because they have more to lose.

This sounds like a strong market-based argument, but implicit in this comment is that smaller farmers are less able to make appropriate decisions for the good of the cooperative because supply size is the best measure of democratic competency. Of course, rational thought says this argument is flawed, but for the last 10 years, this argument has prevailed largely unchallenged. For ten years, those with more means have mattered more.

The second reason – corruption – is about the corrosive nature of markets. Markets change the way we view the things being exchanged. When we decide certain things should be tradable, we decide, at least implicitly, it is appropriate to treat them as commodities, as instruments of profits and use. This means if you have the ability to influence the outcome of a vote, you would be more inclined to vote towards an outcome that is to

your personal advantage.

Conversely, if you had no more ability to influence the result than any other member, you would be more inclined to vote towards the collective good, believing everyone else would do the same.

Markets should have limits within the cooperative. Markets promote inequality and corrupt the non-market value of the things they allocate.

They change member attitudes towards the value of the cooperative, towards other members and towards working together for the collective good.

Encouraging markets into all areas of our cooperative will not promote unity.

A 66% majority in a market-based vote might be the easy way to claim unity, but we all know that to truly have cohesion within the cooperative requires brave leadership – leaders who can step back from heady market values and rediscover the truly priceless non-market values that can unite us and drive dairying sustainably into the future.

• Caroline Gilbert is a Taranaki dairy farmer and Fonterra supplier

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all jwilsonfonterra: It’s a great honour that Sir Henry – I mean the Fonterra board – has endorsed me as the new chair of the cooperative. Henry’s – I mean the board’s – support is most humbling. #thankshenryoldmate henryfonterra @jwilsonfonterra: Congratulations John. Now I can retire a happy man and still remain in full control of Fonterra for the foreseeable future. #mypuppetonastring colinarmerfarms: I have been, and continue to be, a strong supporter of the New Zealand dairy industry and an advocate of Fonterra’s important work. But since I didn’t get the chairmanship I quit. #upyourshenry leonieguineyantitaf: Ahha, there it is, evidence that TAF is now forcing out small, co-operative-type farmer directors such as Colin Armer, and ushering in the takeover of Fonterra by big corporate farmers. Oh, wait a minute. #confusedlogic dcarterminister : If your board continues what is now an ill-informed crusade on biosecurity@afentonhortnz, it runs the risk of lowering the credibility of Hort NZ with the Government and government departments. #watchitbuddy afentonhortnz: No worries @dcarterminster, when it comes to the credibility of biosecurity your Government and the MPI have none with my board or industry. #upyourspal dshearerlabour: I’m out in the provinces wooing the rural vote back to Labour. Nothing resonates more with rural electors than advocating gay marriage, slapping an ETS on agriculture and increasing taxes on bludging farmers. #missionimpossible doconnormp@dshearerlabour: David, our current policy mix has about as much chance of wooing rural voters as I have of leading next year’s Hero Parade in auckland. #gaggleofgaysandunionists mikefayfarmer: I am most disappointed the OIO, courts and NZ Government have failed to favour my attempts to buy the Crafar farms. #nocheapfarmsforme ckellylandcorp: Finally Fay and his selfprofessed saviours of NZ from foreign ownership have discovered that it’s not resorting to court action, but actually offering a better price that’s the way to succeed in buying a farm. It’s called the market! #economics101

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management 29

Big gains from dryland pasture The New Zealand Grasslands Association’s annual conference each year sees some of the world’s best applied pastoral science and research. In the runup to this year’s event, in Gore November 6-8, Rural News will preview a selection of the many papers on offer. In the first of this series, Andrew Swallow talks to Agresearch Invermay scientist David Stevens.

LUCERNE FOR lambs, transitioning dairy cows, the interaction of feed and deer genotype: those are just three of the papers at this year’s Grasslands Conference that will list Agresearch’s David Stevens among their authors.

“I seem to have more than my share this year,” admits the Invermay, Otago, scientist. While he won’t be presenting all the papers he’s had an input on, the lucerne-for-lambs work is one he will. “It’s a project we’ve been running in conjunction with the Central Otago Beef + Lamb monitor farm project.”

The aim was to work out how best to integrate a crop well-known for the quality of its feed and potential to produce more drymatter, particularly in a dryland situation, into the farming systems of that area.

Some were already using it, but not necessarily in the optimum way, and in many cases on not nearly the area they could be, says Stevens.

“There was a feeling that you had to have a certain microclimate for it to work, but when we had a good look at it, those

David Stevens, AgResearch

microclimates are everywhere in Central.

“Quite often farmers were coming unstuck with it because they were using too little too.” As a minimum, he suggests 10% of the grazed area needs to go into the crop so there’s sufficient area to keep a mob of stock on it continuously on a rotation around at least six blocks.

Grazing the crop in spring, then letting it grow later in the season, is proving a better strategy than traditional practice where it tended to be cut first for conserved feed, and only grazed if or when the haybarn was full.

“Grazing it in the spring does have real benefit. You get the lambs off the farm faster, so there’s less need for that to page 30

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Stock performance comparison tailing to weaning.

Typical dryland pasture Spring 2009

Lucerne

Spring 2010

Ave

Spring 2009

Spring 2010

Ave

Lamb growth (g/d)

275

253

264

330

292

311

Stocking rate (ewes/ha)

3.5

2.6

3.0

9.4

10.6

10.0

Lamb gain kg/ha

135

81

108

314

403

358

Results from 3 properties in 2009, 4 properties in 2010, selected as representatives of the Maniototo, Ida Valley and Upper Clutha (Tarras) areas. Average lambing 117.7% in 2009; 120.6% in 2010.

Rural News // August 21, 2012

30 management

Lucerne lifts lambs and ewes from page 29

conserved feed in summer, or later in the year.”

For stands to persist, they do need to be allowed to grow out at least once a season, but that can be done in the autumn once lambs have gone. Such growth can then be cut, or used as a standing feed into early winter.

Where regular pastures in the area might carry 2-4 ewes/ha in spring, on lucerne up to 10 ewes/ha might be possible on the same land with lambs finished 30% faster. “The problem is that’s only spring. If you increased your stocking rate 2.5 times you’d be dead come

winter, hence the need to work out how the crop is going to fit into the whole farm system.”

Lambing a week or two later to coincide with the slightly later growth curve of lucerne might be necessary. “Moving lambing later is counter-intuitive but because the lambs grow faster they can reach the same liveweight by the same date, if not earlier, than off ryegrass.”

Lucerne’s greater persistence on summer-dry country can also make it worthwhile renovating paddocks with the crop, where it would be a waste of time doing so with ryegrass.

“If you renewed with ryegrass it might last three-five years at best, so there’s not a lot of point in that, but lucerne might last 15 years and produce two-four times what you had.

On big, extensive properties, that can make a massive difference.

Money just drops out the bottom.”

Cattle can be grazed on lucerne but providing salt and a fibrous feed such as straw is essential in spring, and advisable at other times. “It may pay to use a bloat capsule. It’s so much easier to use if you do.

“The other beauty of lucerne with cattle is it

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Demonstrating lucerne: Lincoln Prof Derrick Moot (right), consultant Rob Phiskie and Bevan McKnight, a farmer involved in the lucerne for lambs project, address a field day at Merino Ridges.

provides a bulk of feed that they can easily eat.

Often there’s not enough really long feed for cattle on these properties.”

ANOTHER GRASSLANDS paper Stevens has been involved in looks at the need for brassica crops on milking platforms, the theory being they’re needed to transition cows back onto grass.

“The problem is these crops can be responsible for up to half the nutrient and sediment losses off these farms, so the question was, do we really need them?

“The answer is that these farms would actually be slightly more profit-

able if they didn’t have the transition crop.”

Cows transition to grass from brassica or fodder beet much more easily than the other way around, with intake suppressed for as little as three days, he explains. Also, having the brassica crop on the milking platform can exacerbate a spring feed pinch, as it has to be used up, and then when it’s gone it can be a couple of months before the paddock is back in the grazing round with grass on it.

Ram gene test price halved PFIZER ANIMAL Genetics has halved the cost of its Sheep50K DNA test in an attempt to drive uptake.

“We believe the technology is sufficiently proven and robust to be out there benefitting a wider sheep breeding market,” says PAG technical manager Sharl Liebergreen.

He’s confident the price slash will see broader uptake than the 15 prominent breeders who’ve used it to date.

Sheep50K tests a DNA sample, typically of stud rams, to identify genetics determining 15 health, meat, wool and other productivity traits.

The technology effectively fast-tracks progeny testing by identifying rams that are superior for certain traits earlier. For maternal traits this is especially advantageous, notes PAG. Liebergreen says on an industry level wider uptake of Sheep50K will help the meet need for improved on farm genetics, as identified in last year’s Red Meat Sector Strategy report.

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Rural News // august 21, 2012

management 33

Buffalo and rhino make big money Some South African farmers are calling for legalisation of rhino horn trade.

MAKING SURE none of the rhinoceros herd is poached during the night isn’t something New Zealand farmers have to worry about but it is typical for an increasing number of South African farmers diversifying into the lucrative game breeding industry.

After several years of rapid growth, there are now estimated to be more than 10,000 commercial game ranches in South Africa breeding rare species for hunting, meat and conservation purposes.

Kirstie Macmillan of Farm To Farm Tours recently returned from escorting a group of New Zealand farmers through South Africa, Victoria Falls and Botswana.

“We were fortunate to have some great wildlife encounters in the reserves but it was also fascinating to visit farmers breeding rare game such as rhinoceros, Sable antelope and buffalo alongside beef cattle and cropping operations,” she told Rural News.

The group visited a 4000ha farm in the productive agricultural region of Kroonstad, Free State, where their farm host was lamenting the returns on his 1500-head Bonsmara cattle stud. He believes it is his newer game enterprise that will see him through to retirement.

When he starts talking prices, it’s easy to see why. A South African buffalo cow recently sold for a record 20 million Rand (about $NZ3 million) and yearling bulls are fetching up to $NZ1 million.

As well as buffalo, he’s breeding Sable antelope with quality hunting bulls worth around $NZ6500 and breeding bulls at least triple that.

Meanwhile he’s expanding his rhinoceros herd and hopes to get around $NZ20,000 for bulls and NZ$27,000 for two-year-old females.

As he converts more of his farm to game breeding, he is looking to move his cattle operation onto cheaper land in Mozambique where the government is trying to improve the country’s farming industry and infrastructure. He’s also bought land in Botswana, one of the few African countries exporting beef to Europe.

Although profitable, it becomes clear rare game breeding is not without its challenges. While game breeds require less land per head than domestic livestock, there is the need for specialist vet care and disease control, intensive fencing and fire breaks.

Moving and handling stock is labour intensive and often involves tranquilizer darts, plus heightened security is necessary with, in some instances, 24/7 supervision of valuable stock.

Rhinoceros poaching is a particular problem as demand for rhino-horn powder grows in Vietnam and China. The Farm To Farm group heard how recently a Vietnamese poaching ring was arrested with over $US10 million worth of horn.

Global attention on the plight of the rhinoceros is rising, but still record numbers have been poached in South Africa this year. Some farm breeders de-horn females to reduce the risk, and provide 24-hour security for bulls. Others have given up on rhinoceros altogether.

There are calls for legalisation of the horn trade in South Africa arguing that harvesting horn, under anaesthetic, to supply what’s clearly a buoyant market, would push prices down and reduce poaching.

Such was the interest of the trip, Farm To Farm Tours is planning a return to southern Africa, in addition to many other regions of the globe, in 2013.

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Rural News // August 21, 2012

34 management

Farm cadet course in In a matter of weeks five lucky young people will be selected to attend the prestigious two year farm cadet course at Waipaoa Station near Gisborne. Rural News reporter, Peter Burke reports.

Jake Coulston

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WAIPAOA STATION is about an hour inland from Gisborne, just off SH 2. It’s typical medium to steep East Coast hill country and once was a huge iconic station of some 13,000has.

However, over time, parcels of land have been sold off and today the 1800ha effective property carries 16,000 stock units, split 50/50 sheep and beef.

It’s still a commercial farm, but since 2007 has had a hands-on two-year farm management education programme inte-

grated with that.

The station is owned by Rob and Jenny Telfer and Nic and Andrew MacPherson. Their vision, with community and industry support, led to the establishment of Waipaoa Station Farm Cadet Training Trust in 2006.

The cadets learn their practical farming skills from station manager Rob Telfer and his staff, but also have time set aside each week for theoretical work which helps them earn NZQA certificates

three and four. This side of the course and the general running of the programme is handled by Geoff Hornblow, a highly experienced farm manager who joined the Trust this year.

Home for the cadets on farm is a centre at a place called ‘Moonlight’ about 7kms up and over a hill from the main yards.

It was the station’s single men’s quarters but wasn’t being used so was taken over by the Trust.

The buildings are modern, with accommo-

Student’s view Jake Coulston is from a farm near Upper Hutt and is in his second year at Waipaoa. He chose Waipaoa to get the best possible start to a career in farming, he says.

“The training in fencing, lots of dog work, teaching us how to do horse work has been great.”

Already he has his name on the honours board for his first year’s work. At the end of this year he’s looking for a junior shepherding job in Gisborne or Wairarapa. He’s wanted to be a farmer since he was 10.

“It’s not all practical: the theory is also a big part of the course.”

Another great feature of the course is the variety of the work, he adds.

“I love the country around here. It’s nice and steep and very challenging.”

dation, dining, teaching and recreation facilities for the 10 cadets. All current cadets are male: over

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the years a few females have applied but to date none have made it through the selection process.

Participants pay just $5000 thanks to substantial subsidisation by the Trust which receives significant funding from local and national donations.

The Trust is based on a similar cadet training institute, Smedley in Hawkes Bay. The first five cadets took their place at Waipaoa in 2007 followed by another five, a year later.

And so it’s continued.

The number of cadets in training is strictly limited to ten, partly because of accommodation, but also because there is only enough work for 10 cadets on the Station.

Hornblow says the course is heavily weighted

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Waipaoa’s accommodation and teaching block.

towards the practical, based on good science and industry best practice, with the objective of turning out highly skilled young shepherds.

“In the first year there are more general topics around sheep and beef breeding, livestock management grasses, pastures those sorts of things. On the practical front it’s generally the type work that they would do as a shepherd on a farm – fence repairs and maintenance, repairing and building sheep yards and looking after stock water systems.

They also get to learn the basics of driving a fourwheel-drive tractor with implements on the hill country.”

Health and safety is a high priority and a comprehensive orientation programme is run to ensure cadets have certain basic skills and understand the systems and procedures.

Station manager Rob Telfer and his staff manage the practical training of cadets. “I don’t have a say in their day to day farm tasks but I know what’s going on and where the boys are and make sure they have the appropriate gear,” notes Hornblow.

“For example, if they are going mustering, everyone needs to know whether they are taking their horses from Moonlight or from down at the station yards. The boys have to pack a lunch every day and are expected to take everything they need for the day with them in the morning.”

Cellphone coverage is at best patchy. It’s not a place for those whose lives revolve around social media. Hornblow says the boys are kept busy. Many are happy training their dogs in their spare time and in the second year there’s a comprehensive farm report to prepare.

Weekends are free with some playing rugby or going on hunting trips.

“I’d like to think they

go to town for a purpose, rather than just cruise the streets, and I try to provide some guidance about what to do in their spare time. Some of the boys get part-time work crutching or fencing. They can make good money at the weekends.”

Limited numbers make for good group dynamics and no one individual is allowed to dominate.

“It makes them good mates and guys on past courses keep in touch.

They are all highly motivated and competitive and want to get their names on the honours’ board.”

While there’s competition on the course, the competition to get on it in the first place is considerable too. The Trust typically receives 35 applications for each year’s five places. About 20 are selected for interview.

“The big thing we are looking for is commitment to agriculture: young people who can see themselves having a long-term role in the sector.”

About half of applicants are from non-farming backgrounds. Hornblow says they are looking for those who have worked on farms at weekends and can show they have taken the initiative to prove their commitment to farming, and haven’t just been told to do it.

“They have to be people who will go out in the bad as well as the good weather and who want to be practically involved in farming but accept that formal training is part of the pathway.”

Employment prospects for Trust graduates are very good. “They should be able to step into any shepherding job involving a large sheep and beef operation or intensively farmed properties. There are lots of opportunities for them in the Gisborne area and to advance their careers. We’d expect them to be up to a manager’s job within ten or fifteen years of leaving here.”

About the boss Hornblow hails from Foxton, Horowhenua. On leaving school he worked for his uncle on a property in Hawkes Bay and subsequently leased a 400ha sheep and beef farm in the region.

With children away from home, the pair decided it was time for change and Geoff took on the role as manager for the Trust.

“It was a logical extension of what I have done. I’m a good organiser and I am teaching stuff that I’ve learned both formally and informally.”

For wife Dale there is no official role at Waipaoa, but Geoff says she help and supports him and pitches in when necessary around the hostel, such as a stint covering for the cook who was away in Canada.

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management 35

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Rural News // August 21, 2012

36 management

Weed control crucial RESULTS OF a grass weed management trial should serve as a reminder to all farmers, cropping or otherwise, to be wary of over

reliance on chemical controls, says the Foundation of Arable Research.

The trial, on Beech Road near Ashburton, was

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established last autumn looking at cultural control of ripgut brome in April 27-sown barley, as part of a FAR and MPI Sustainable Farming Fund project.

The site had a high background level of the weed and was twice treated with glyphosate before burning, followed by a third treatment prior

to cultivation and sowing.

Despite those three sprays and the burn, up to 56 ripgut plants per square metre established (see table).

“It shows we have to think far more about the control of our weeds, both culturally as well as agrochemically, rather than agrochemically alone,”

Ploughing made a significant different to ripgut brome populations in FAR’s latest trial.

FAR’s Nick Poole told Rural News.

“If we don’t, our chemistry will be short-lived.”

While not making a statistically significant difference in this particular trial, burning is an “an incredibly important cultural control” which would be seriously missed if banned “for political reasons,” he adds.

FAR has just landed another Sustainable Farming Fund grant to raise awareness to the risk of glyphosate resistance across all sectors, from viticulture to dairying, and everything in between.

“We know it is out there (internationally) and it affects multiple sectors.”

Poole says no cases have been recorded in New Zealand but that doesn’t necessarily mean no weed populations have

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developed resistance here: rather it’s just that nobody has noticed a lack of control, and subsequently had it checked and found it to be due to the weed developing resistance.

“Whether it is here or not we can’t actually say. It may be, but we’ve just not discovered it yet.”

Poole notes that because cropping farmers generally use a broader spectrum of controls on their weeds, resistance to glyphosate may be more likely to appear in other sectors first.

“It could be under a viticulturalist’s vines, or on a dairy farmer’s paddock edges which he routinely sprays out.”

FAR is holding a series of field walks later this week, including one at the Beech Road site. See www. far.org.nz for details.

Roadside weeds resistant in Oz AUSTRALIA’S GLYPHOSATE Sustainability Working Group (AGSWG) warns of a “looming crisis” following the discovery of 136 glyphosate-resistant populations of annual ryegrass and fleabane on roadsides from Queensland to Western Australia.

Associate Professor Chris Preston, University of Adelaide and AGSWG chair says glyphosate resistance problems arise because many land managers rely on the herbicide for weed control without plans to manage the resistance risk. “Glyphosate is an excellent herbicide that helps keep management costs down, however there are no easy replacement options currently available,” he warns.

“The rapid development of glyphosate resistant weeds and species shift to glyphosate tolerant species will have a large impact on budgets and logistics.”

Other areas where glyphosate resistant weeds were discovered included irrigation channels, fences, rail tracks and around buildings.

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Rural News // august 21, 2012

animal health 37

Ministry warns on DIY gelding HORSE CASTRATION by anyone other than a vet or suitably supervised vet student is illegal and risks a fine of $50,000 or 12 months in prison, says the Ministry for Primary Industries.

Its reminder follows enquiries in Hawkes Bay and the wider East Coast found reports of unqualified people performing castrations on their own horses, and in some cases, as a business.

“It appears to be a practice that is well ingrained in the culture of the farming and rural community of the wider East Coast area with this service being utilised by many large sta-

tion owners despite them knowing it to be illegal,” says MPI Wellington/ Taranaki District Compliance manager Mike Green.

Penalties under the Animal Welfare Act 1999 carry a maximum fine of $50,000 or 12 months imprisonment.

Green says the procedure has been a veterinarian-only one for more than 50 years “so there are no excuses for anyone being unaware of its status.”

“We want to get the message across that continuation of this illegal practice may attract prosecution.

This includes horse owners who allow the illegal castration of their horses,

and people performing illegal castration of horses.”

The Ministry has issued nine warnings in the area and is continuing its enquiries. As yet there are no prosecutions underway.

MPI says veterinarians spoken to said they can provide horse castration services even in more remote areas at reasonable prices provided horse owners plan and are prepared to group together for the same purpose or in conjunction with other veterinary visit needs.

Rural News understands prices start at around $250/horse, though some clinics charge up to $400/horse.

Animal welfare rules spawn NZ-UK joint venture GROWING DEMAND for animal welfare assured meat, and impending EU regulations, has spawned a new business.

New Zealand-based business Carne Technologies, Cambridge, is teaming up with Animal Welfare Training UK to form Animal Welfare Training NZ. “Our primary concern and level of involvement is around handling of animals once they come into the meat plant for stunning and slaughter,” Carne Technologies’ general manager Nicola Simmons told Rural News.

However, Simmons says the meat industry is

tions (EC Reg. 1099/2009) now required to assure the EU all staff are trained will be regarded by some as yet another market barin key welfare and quality issues appropriate to their rier that hikes costs, but they can positions, also be and ‘meat seen as industry’ an opporis meant in tunity the broadto make est sense: worth“farmers, while proretailers, ductivity teaching gains, she institumaintains. tions, the “When poultry all staff, and pork Nicola Simmons from indussenior tries, veterinary and animal welfare management to slaughagencies, and government termen, understand the philosophical and practidepartments.” cal aspects of animal welInevitably the regula-

fare procedures there are invariably commercial gains through more efficient operation and better product quality.”

Simmons says Carne and Animal Welfare Training UK combined have over 100 years of pure and applied research into the welfare and quality of farm animal production and slaughter.

The training programmes being developed for New Zealand producers and processors “will be both theoretical and practical, and will be consistent with the training courses and certification provided in the UK and the wider EU.”

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Rural News // August 21, 2012

38 animal health

Egg yolks could be sub for drugs a l a n ha rm a n

HYPER-IMMUNE EGG yolk antibodies are being used to help control intestinal diseases in poultry.

The antibiotic-free technology involves extracting antibodies in egg yolks from pathogen-free hens that have

been hyperimmunised – injected with a vaccine that contains inactivated pathogenic organisms.

Hyperimmunised birds have a greater-than-normal immunity and produce a large amount of antibodies.

A United States Agricultural Research Service

(ARS) team showed the effectiveness of inducing passive immunity in young birds which normally have no immune protection against coccidiosis immediately after hatching.

Birds affected by coccidiosis are unable to absorb feed or gain weight.

The disease costs the

global poultry industry about US$3 billion/year.

A commercial product that helps control coccidiosis has been developed by a private company based on results of the research and the ARS scientists say similar methods may be able to be used to help prevent other

harmful poultry diseases.

Avian immunologist Hyun Lillehoj at the ARS Animal Parasitic Diseases Laboratory in Beltsville, Maryland, says antibiotic-free alternatives are important to help fight drug-resistant strains of diseases and for organic poultry farmers.

Molecular biologist Sung Hyen Lee (left) and visiting scientist Seung Ik Jang prepare to test a chick’s immunity. Photo: Peggy Greb.

“Coccidiosis is associated with other pathogens, such as the one that causes necrotic enteritis – a prevalent gut disease of poultry. By controlling one, you’re also reducing the impact of the other,” says Lillehoj.

Generally, a host can develop two types of immunity to resist infection: active and passive.

Passive is when already formed antibodies are transferred from the hen, via the yolk, to the chick.

Active immunity relies on vaccines or natural exposure to build immunity in the birds.

“When chicks hatch, they have no immunity to this [coccidiosis-causing] pathogen.

“But if we give preformed immune proteins to one-day-old progeny,

they are ready to fight infection. It’s similar to how immunity is passed to newborns through milk.”

In the study, day-old chickens were given feed mixed with spray-dried egg yolk powder prepared from hens hyperimmunised with multiple species of the parasite Eimeria, which causes coccidiosis.

The chickens were then exposed to live coccidia parasites.

Chickens that had received the hyperimmune egg yolk antibodies gained more weight and shed significantly fewer Eimeria in their faeces.

The treated birds also had less gut lesions than chickens that did not receive the treatment.

“It’s very simple technology, and it works,” says Lillehoj.

Farmers contacts shared with MPI FARM INDUSTRY groups Ovis Management Ltd (OML) and Johne’s Management Ltd (JML) are to share their farmer contact lists with national farm database FarmsOnLine.

FarmsOnLine is managed by the Ministry for Primary Industries. The Ministry says the database’s role is to ensure response to any exotic disease outbreak would be fast and effective.

Joint chairman of OML and JML, Geoff Neilson, says FarmsOnLine asked for the information, which will be made available to the Ministry next month unless farmers opt-out following a mailshot to those on the contact lists earlier this month.

“We would encourage everyone to participate,” says Neilson.

“It’s in our own interests to have a fast, effective response system... protecting NZ agriculture is a growing challenge. The speed and volume of our trade with other countries is increasing which means every year the biosecurity risks are higher.”

Rural News // august 21, 2012

animal health 39

Setting standards for auto mastitis systems ANDR EW SWALLOW

INVESTING IN automated mastitis detection isn’t cheap, yet at present there’s little comparable data to help guide the decision.

Dairy NZ is working with milking technology makers to fill that gap, developing standard protocols to assess detection systems against.

“We had 10 companies around the table in March and all were very positive,” says Brian Dela Rue, a research engineer with Dairy NZ’s milk harvesting and automation team.

He and colleagues Jenny Jago and Claudia Kamphuis presented a paper at the South Island Dairy Event in June revealing the findings of a survey of 80 farms with ‘hitech’ dairies, 42 of which included automated mastitis detection of one sort or another.

The level of satisfaction with the detection technology was found to be markedly lower, at 62% satisfied or very satisfied, than for tools such as automated cup removal (91%), drafting (84%), or teat spraying (84%).

Dela Rue and his colleagues say possible reasons for that include the complexity of automating mastitis detection, over-expectation by farmers of some relatively basic detection technology, and

systems available that give clinical mastitis, identify a lack of understanding cows with high cell counts, results for each quarter how to use the systems and identify cows with of the udder, while others effectively. work at a cow-level. Prices subclinical mastitis.

Where it’s the latter, Dela Rue says a balance start from about $1000/ Dela Rue says culpabilbetween system sensitivbail. ity can lie with both the ity – its ability to detect Of the 42 farms with farmer, and/or the supautomated mastitis detec- mastitis – and the number plier. “Some farmers of false alarms, has to tion in the survey, 90% haven’t had the trainbe struck. He suggests a were using EC, he notes. ing they need or in some detection rate of not less cases, they’ve not commit- “Most people that have than 80%, with less than these systems are using ted to the technology.”

1% false alerts, should be the conductivity type.”

He’s aware of at least the target.

False alerts are a one manufacturer who is Farmer survey results common problem. Intereffectively screening who show in herds of 300 to national studies of EC they’ll supply certain systems to as some computer found some recording the 800, up to 20 false alarms equivalent of 310 per 1000 per milking would be conskill is needed to make it milkings, but the best sys- sidered tolerable. work well.

Benefits reported tems, operated well, trigThe systems available by those with systems gered just 20 false alarms fall into two basic catinclude: time saved by not per 1000. egories: those that test having to strip the herd On one of DairyNZ’s the electrical conductivregularly, earlier identifiresearch farms, an EC ity (EC) of milk which is cation of cases and hence mastitis detection system known to correlate with better chance of cure, and identified 27 of 46 cows the level of tissue damage with mastitis, a sensitivity data to inform culling in the udder; and those decisions; ability to moniof 63%, while false alerts that measure somatic cell tor cows’ recovery phase. ran at 8.7%. count.

Dela Rue notes the Dairy NZ says systems The latter is the more benefits haven’t been should be measurable in expensive, in the order of quantified, physically or their ability to do three $3000/bail, and consefinancially, unlike the quently is often only fitted things: identify cows with to every third or fourth bail on a rotary.

“But even • Assess current mastitis/scc then it’s a bit performance – SmartSAMM. like herd test• Determine your expectations – ing every cow realistically. every fourth milking, which • Investigate available options. is a pretty good • Consider and value benefits – way to manage mastitis/scc and labour, etc. the somatic cell count of the • Analyse financially – partial budget. herd,” he notes.

• Consider on farm changes needed: With the EC training, systems, procedures, records. meters, there are

would save the average South Brian Dela Rue Island herd of 582 cows depends on how the farm $34,200/season. uses it. “These systems are But as he pointed out not going to solve mastitis to Dairy News, installproblems. They are only ing a detection system going to help you identify isn’t necessarily going to the cases.” deliver that benefit; it all

cost of mastitis to farms, which is well documented and built into the SmartSAMM calculator. In the SIDE paper, Dela Rue et al show how cutting cell count from 250,000 to 150,000, clinical mastitis from 16% to 10%, and culls and deaths from 2% to 1%,

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Rural News // August 21, 2012

40 animal health

Herbage test to check nutrition TEST SPRING pasture, and supplement, to minimise the risk of poor nutrition hitting this and next season’s production, says Altum.

“One of the best methods to determine if a herd is consuming adequate nutrients is herbage testing to pinpoint any limiting factors in the diet in

combination with analysis from other supplementary feeds,” says animal nutrition manager Jackie Aveling.

Total nutrition including energy, protein, macro and micronutrients during calving and early lactation is critical to cow health, and milk production this year and next, she stresses.

Analysis of samples from thousands of Altum clients over the past five years shows pasture potassium is higher over winter and spring, then trends down over summer.

Meanwhile magnesium and calcium — both key lactating cows — trend lower in winter and spring, as do most trace eleJackie Aveling

Wet weather adds issues RECENT WET weather will only add to nutritional problems, says Aveling’s colleague Matthew Ward.

“It has quite a marked effect.”

Pasture mineral quality, notably in terms of copper and iodine content, is reduced due to lack of sunlight hours and the ME will be lower.

“Also there’ll be a lot of trampling so utilisation is less, and they’re ingesting more dirt which means iron and aluminium intake is increased.”

Both those latter minerals are antagonistic to copper uptake, so can exacerbate an already reduced

pasture content.

Like Aveling, Ward says use multiple forms of supplementation, and be wary of over reliance on water dosing in wet weather.

“If you have the facilities to do it, give it in the feed or some other form.”

He’s not a fan of injections, however.

“They’re negated if they abscess and are gone in six to eight weeks, depending on what form you use.”

Adequate copper intake is particularly important at this time of year owing to its role in production, reproduction, and growth, he notes.

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ments in spring as pasture growth increases, thought there are exceptions.

“In a forage based diet, pasture potassium levels exceed the needs of calving and lactating cows,” notes Aveling.

“Potassium can negatively impact the availability of magnesium in the cow which increases the risk of milk fever.

“Identifying pasture potassium and magnesium levels will help plan an effective supplementation programme.”

But sodium can increase magnesium uptake in cows and provides other health benefits, she notes.

“For optimal health and maximum production balance is the key.”

A robust supplementation programme should include a combination of approaches, including high quality magnesium made directly available to the herd through water, dry cow molasses lick blocks and pasture dusting.

“Detailed analysis of

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programme, which then can be implemented to remedy the shortfalls and give the herd a better chance of reaching its optimum production potential.”

Aveling says this can also be linked to fertiliser programmes to introduce background doses of important elements such as magnesium and selenium.

Rural News // august 21, 2012

animal health 41

Trial finds stones match sawdust CALF PENS floored with river stone have been given a thumbs up by Dairy NZ, subject to stocking density.

A Dairy NZ and AgResearch study last spring found “no detrimental effects” to calves raised on river stones and that MAF Animal Welfare (Dairy Cattle) Code of Welfare minimum standards for housing calves were met, says Dairy NZ’s animal husbandry and welfare team leader Nita Harding.

The study was on a commercial farm near Mossburn, Southland, with four pens of five calves stocked at one per 2m sq, the recommended density for calves on stones. The stones

were 3cm round and laid 20cm deep. A corresponding number of calves were reared on sawdust, with calves’ health, behaviour, and environment on both floorings evaluated at one and six weeks of age.

“Both [mobs] grew at the same rate and both bedding materials were relatively dry and clean throughout the study period,” says Harding.

“We now have to go back and investigate the effects of rearing calves on river stones at different stocking rates, as this is likely to be more relevant to commercial conditions.”

Studies this year include more detailed examination of calf behaviour, health and growth.

With calf rearing underway, Harding says remember bedding is only one part of a successful system.

“No matter what type of bedding is used, it is important that a plan is

in place that takes into account all aspects of calf care. This includes making sure staff are adequately trained, calf feeding and health care is adequate, and that calf rearing facilities are well-prepared.”

On par: calves on stones and sawdust.

THE SECRET TO FARMING IS PROBABLY SOMETHING YOU LEARNED FROM YOUR DAD.

A CALF FEED manufacturer is claiming it has a product which is unique in encouraging the correct volatile fatty acid profile to maximise rumen papillae development.

Agri-Feeds says research shows the number and size of papillae are set for life by the time a calf is eight weeks old.

“Milk alone does little to develop these papillae and forages don’t provide sufficient or the correct profile of volatile fatty acid needed for effective papillae development,” says technical manager Andrew Oakley.

“Only one product, RumenX, encourages the correct VFA profile needed to maximise papillae growth from an early age.”

Agri-Feeds’ manufacturing process ensures starch is in a form rumen bacteria can digest, whereas many starches in meals are inadequately digested by young calves because it takes up to three weeks for the pancreas to develop sufficiently to produce enough amylase to do the job.

Oakley says as a result, RumenX can reduce the amount of milk needed to produce a well grown calf, and in due course, heifer.

in brief Praise for NZ farmers THE SOIL management and measuring practices of New Zealand’s pastoral carbon farmers have impressed soil scientist Professor Rattan Lal, Distinguished Professor, School of Environment & Natural Resources, Ohio State University.

During informal discussions last month at the Agriculture and Environment Research Symposium in Sydney he said a 6% increase in total soil carbon achieved by some New Zealand farmers was well ahead of anybody else in the world.

The symposium, jointly hosted by the University of Sydney’s faculty of agriculture and environment and the United States Studies Centre, brought together world experts to discuss the development and establishment of international research and policy agreements on soil security.

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Rural News // August 21, 2012

42 animal health

Aussies target dogs, pigs, rabbits

Bad dog: An Australian wild dog.

Photo: Lee Allen, Invasive Animals CRC.

ALAN H A RMAN

WILD DOGS, feral pigs and rabbits are the priority targets of a new A$72-million, five-year Australian research project designed

to reduce the A$1-billiona-year damage to agricultural productivity and the environment.

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Glanznig says swelling rabbit numbers due to increased food availability and Rabbit Haemorrhagic Disease resistance, expanding carp populations and increasing livestock losses to wild dogs and pigs are among five key research targets.

Participants in the CRC progamme include the UK’s Food & Environment Research Agency.

The CRC wants to achieve a system that will mean no new vertebrate pests established in Australia through the development of a national incursions response system, and, going a step further, to conduct research underpinning an optimal strategy to eradicate foxes from the island state of Tasmania.

Also on the wish list is a system underpinning strategic forecasting and planning to allow pre-emptive invasive animal management as well as for landscape-scale recovery of key land and water regions after control of rabbits, carp and wild dogs.

The CRC will also investigate the relationships between native and introduced predators (wild dogs, foxes and

cats) in Eastern Australia to improve management of these pests to limit impacts on biodiversity, primary production and domestic pets.

It wants to create new social networks and institutions for better community engagement to control pest animals, for instance stronger community involvement in citizen science mapping, ongoing research for improved strategic wild dog management in sheep and cattle regions of Australia; and improved agricultural productivity from accelerated adoption of pest animal control strategies and technologies.

Glanznig says more humane controls including new baits for wild dogs, foxed and feral pigs, and new delivery systems, are expected to be commercially released within a year.

“The ultimate objective is to ensure Australia’s farmers and land managers are not exposed to the risk of having inadequate technologies against pest animals to protect biodiversity assets and long-term food security,” he says.

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SOUTHLAND SHEEP and beef farmer, and former Meat and Wool New Zealand chair, Jeff Grant, is to chair the board of the new organisation resulting from the merger of the Animal Health Board (AHB) and NAIT Limited.

His fellow directors will be Keith Sutton, Ted Coats, Lesley Campbell and Michael Jeff Grant Spaans. Andrew Coleman, from the Ministry for Primary Industries, is the government appointee.

The existing boards of both the AHB and NAIT will continue to operate for the time being, with the new organisation to be in place by July 2013.

“The board will be involved with the development of the new entity’s structure and constitution and its transition to a new single organisation responsible for both the TBfree New Zealand programme and the NAIT scheme,” says Grant.

“Farmers and stakeholders can be reassured that for both the bovine TB control and NAIT schemes, it is very much a case of business as usual.”

Rural News // august 21, 2012

machinery & products 43

Polytech day out raises awareness SAFETY INSPECTORS, motorcycle dealers and farming industry instructors recently turned out in force in Wairarapa to test drive farm LUVs (light utility vehicles).

The half-day event was run by Taratahi Agricultural Training Centre at its Wairarapa campus, chiefly for inspectors from the Ministry of Business, Innovation and Employment.

LUV dealers and Taratahi staff helped the inspectors understand the machines’ pros and cons, and compare engine braking, manoeuvrability, design and frames.

Dealers attended from six Wairarapa firms: CB Norwood (Kubota), Tullochs Farm Machinery (Massey Fergusson), Sargent Motorcycles (Yamaha and Polaris), Langlands Motorcycles (Honda), James Farm Machinery (Kyoto) and Moto Shop (Can-Am).

They briefed the inspectors on technical aspects

of the machines and oversaw test drives.

Health and safety inspector Russell Young says he and colleagues are seeing “more and more LUVs out on farms”. He has spent 14 years assessing, advising and investigating for the ministry (formerly Department of Labour).

“Our inspectors need to understand the features of different brands, how they handle on different terrain and how they can be used safely.

Having the opportunity to compare a range of vehicles, be driven by professionals, and drive them ourselves on a challenging circuit has been a fabulous learning experience.

“Taratahi provides a high standard of agri-vehicle training to its students and has been supportive in developing learning opportunities for our inspectors.

“The ministry is notified of about 850 workplace incidents involving

Left to right: CyrilButler Tulloch Farm Machines,Elaine Cowan, Safety Inspector, Ivan Allanson, Taratahi Agri Vehicle Tutor, and Russell Young, Safety Inspector discuss aspects of Light Utility Vehicle safety.

quad bikes each year; sadly an average of five people die each year. Driver fatigue plays a huge role in safe driving, after a hard day on-farm in all weathers it’s easy to see why some accidents occur.

“Farmers choose LUVs for a variety of reasons: they suit carrying passengers, have good towing capacity and carry trays, and in some cases are more appropri-

ate for a task. It’s great to see our suppliers are putting safety first…. Suppliers usually advise clients on the vehicle’s attributes, whether it is fit for the intended purpose and advise formal training.”

Taratahi’s agri-vehicle tutor and fleet manager Ivan Allanson says the polytechnic “takes safety seriously and puts a lot of time into ensuring our students – many of them aged

17 and 18 – have a good understanding of which vehicle is right for the job and how to operate them in a range of conditions”.

“Taratahi’s training includes safe operation of two-wheelers and quad, LUVs, and various tractors and farm machinery. We want to make sure that

Taratahi brought together light utility vehicle (LUV) suppliers and Health and Safety Inspectors to share knowledge and experience.

when our graduates are in the work place they are able to make good choices about their

driving capability and the capability of the vehicle they are using.” www.taratahi.ac.nz

Agri-vehicle rule changes PLANNED CHANGES to the rules for agricultural vehicles will reduce compliance costs while still ensuring safety, says Associate Transport Minister Simon Bridges.

The change is to a two-tier system for agricultural vehicles based on a 40km/h operating speed. Vehicles operating below this speed will be exempt warrants of fitness and work time requirements.

A new licence endorsement will allow car licence holders to drive a

greater range of agricultural vehicles if they have the skills.

Other changes will improve and simplify the rules on pilot vehicles, work time variation schemes, hazard identification and vehicle visibility.

“Safety remains a key factor,” Bridges says.

“Agricultural vehicles [must] use a flashing amber beacon to better alert other road users to [their] presence. Better and less regulation [will improve] com-

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pliance and flexibility for vehicle owners.”

A review in September 2011 responded to farmers’ and contractors’ concerns that existing laws failed to take into account the special nature of farm vehicles and the demands of production.

Introducing the changes for agricultural vehicles will require land transport rule amendments, and Bridges says there will be further opportunities for industry and the public to make submissions.

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Rural News // August 21, 2012

44 machinery & products

Rotor-seeder eases job A FARMGARD air seeder and Celli spiked rotor combination turned a major cropping and regrassing project into a simple operation, says Wellsford dairy farmer Paul Shepherd.

Shepherd milks 400 cows on a 185ha platform and cropped and this year regrassed 50ha of his farm using a new Celli Pioneer 140-305 spiked rotor hoe and Farmgard Proseed A8 air seeder.

There were no missed strikes in the regressing, which Shepherd attributes to the weather and the new air seeder. “You couldn’t have asked for a better season.

From March 1 conditions were perfect.”

Northland has been enjoying a mild winter, with weather moving from La Nina to El Nino patterns, but Shepherd says the air seeder contributed most to the success of the regressing.

“Certainly there were no jobs that had to be redone and that’s not always the case

with direct drilling. Some people around the district this season had disappointing results with direct drilling and they don’t know why, while contractors who used air seeders seemed to be getting uniformly good strikes,” he says.

Shepherd last season planted 30ha maize silage, a 10ha brassica/sorghum mix and 10ha of Italian annuals across the farm as part of a capital regrassing project.

While contractors planted the 30ha of maize Shepherd planted the 20ha of Italian annuals, brassica and sorghum with the air drill and did all the cultivation with the spike rotor hoe. He regrassed all the cropped area with the air drill.

Celli New Zealand distributor Farmgard says the tailgate at the back of the spike rotor hoe allows soil to be worked up twice within the same pass.

Tel. 09 275 5555 or 03 437 9000 www.farmgard.co.nz

The Quad in this picture is the C8 model and not the CF500 as referred to in the article.

Chinese quad gains in Australia THE CHINESE-MADE quad brand CFMOTO was best seller in April in the Australian market, reports the New Zealand distributor CB Norwood.

Specifically it was the company’s CF500 that “outmuscled other brands – a tremendous result in a red-hot market.”

Top-selling quad this year in Australia is the Honda TRX250 (597 sales), followed by the CF500 (236).

CFMOTO was recently relaunched there in a “circuitbreaking marketing assault by the Australian importer Mojo Motorcycles”. And the manufacturer played its part by supplying plenty of product, CB Norwood says.

During a recent go-for-a-ride event at a popular 4WD park in Werribee, Victoria, the Bikesales Network tried a CF500.

Says the reviewer, “The CF500 doesn’t ooze innovation – there’s not a massive amount of it in the ATV world – but it offers a comfortable ride, a 35hp carby-fed liquid-cooled single-cylinder engine, compact bodywork, and switchable 2WD/4WD with electric diff lock.”

The machine also has an 1135kg winch, independent rear suspension, a 19L tank, 275mm of ground clearance and outboard disc brakes.

Te. 06 356 4920 www.cfmoto.co.nz

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Rural News // august 21, 2012

machinery & products 45

Mower is smooth in the rough ROUGH GROUND and rocks are challenging but not beating a Kuhn GMD 350 vertical-fold mower at Landcorp’s Lynmore Station, in Te Anau Basin.

The station (2500ha) has eight staff farming sheep and beef.

“The environment is very hard on mowers, with the amount of rocks we have,” says manager Wayne Webb. “Our last three mowers have been Kuhn, and when our old one wore out the Kuhn dealer mentioned they had new models, so we got one.” Advance Agricentre, Gore, made the sale.

The new mower arrived last spring and by late summer had topped 1200ha. It was the station’s choice especially because it is robust and designed to be used on hills: it can be angled up 35° degrees or lowered 29°. “We use it on the hills all the time and it works well,” Webb says.

The GMD 350 has a working width of 3.5m and pulls the row into 2.8m.

“One reason we got it is it’s slightly wider than the previous one, and we didn’t want to go to doubles. They’re all right for mowing silage but not for topping rougher country.

We’d end up damaging it.

It also has a flash cutter bar. It runs longer and needs less power, so it’s more efficient.”

The GMD 350, powered by a 110hp tractor, is 3-point linkage mounting, ideal for “ground too rough for a trailing mower, where it would fly apart,” Webb says. “It has a 540rpm PTO on the mower so we use a lot less diesel.”

The mower’s Opticut bar runs smoother and quieter than normal mowers, Kuhn New Zealand says. It has eight oval discs and easily changed blades. “It’s a quick change,” Webb says. “One turn of a lever; not like the old ones where you undo bolts.”

The quantity of rocks makes a kickback feature a necessity. “If it hits a big mound of dirt, it kicks back behind the tractor, rather than chopping through it.”

Maintenance is low: the driveshaft needs greasing but nothing else; it’s selflubricating.

Kuhn says an attractive feature of the mower is its provision for the operator to alter its ‘sensitivity’ to the ground – or hydropneumatic flotation that “floats it up” on rough ground. On smoother pad-

docks it’s lowered.

Gateways and narrow spaces present no problems. At the end of a job turn a lever (in the cab) and the mower tilts back and up, to rest vertically

Tel. 03 343 3033 www.theshow.co.nz

behind the tractor.

Webb says he usually sells a mower after three years, though the last Kuhn lasted four.

Tel. 0800 585 007 www.kuhn.co.nz

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ENTRIES ARE now open for the 150th Canterbury A&P Show.

The A&P show’s last big anniversary was its centennial show in 1962, says Canterbury A&P Association president Richard Lemon. It was recorded as the best show ever; the weather was kind except for one heavy shower, he says.

“With all the excitement an anniversary year attracts, we’re set for a record year in 2012. If you enjoy showing then it doesn’t get any better than a supreme champion win at the 150th show.”

The Canterbury A&P Association hosts the largest such show in New Zealand.

It averages 7000 livestock and feature competition entries: 3000 animals in 1700 classes including horse/pony, beef/dairy cattle, sheep, alpaca, llama, pig, wool, goat, dog trials, poultry, shearing and wool handling, wine, gourmet oil, mint lamb, woodchopping and vintage machinery.

The 150th Canterbury A&P Show will be held Wednesday 14 to Friday 16 November at Canterbury Agricultural Park, Christchurch.

The robust Kuhn GMD was used to top 1200 ha of challenging pasture at Lynmore Station, in the Te Anau Basin, this summer.

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Rural News // August 21, 2012

46 machinery & products

Starlings can fire up tractors PETER BU RKE

STARLINGS HAVE caused at least $9 million damage to farm tractors during the past five years, says rural insurer FMG. Birds love to nest in warm, dry places -- especially tractor engines. But the resulting straw can easily catch fire

and destroy a tractor.

Jason Rolfe, FMG rural manager in Manawatu/ Horowhenua/Kapiti, says tractor fires are a big claim item. “It’s the breeding season for starlings and farmers should make sure they check their tractors for nests before taking them out.”

Starlings don’t distinguish between an old or new tractor; they simply look for a warm, dry nesting place. “It takes a starling just 18 minutes to build a nest so they can do it while a farmer is having lunch.”

Starlings were brought to New Zealand in 1862

and are beneficial to farms – foraging on insects, in particular grass grubs.

Nesting boxes are good encouragement to them.

But mind their presence in woolsheds and tractors.

Farmers should check for bird nests at each tractor start-up, Rolfe says.

And they should carry a

fire extinguisher in the tractor. “So if they do notice smoke [from under the bonnet] they can put the fire out and minimise damage.

“Often a tractor will catch fire [while underway, far from] a water trough. It’s not uncommon for farmers to lift the

Tell-tale signs of a starling setting up home.

bonnet when they see the smoke, then obviously a bit of oxygen is what the fire needs to flare up.”

Rolfe says tractors burn well once on fire. FMG encourages farmers to buy fire extinguishers.

Weed wiper promises more

MS1324

LARGER WHEELS fitted to a 6m tractor-mounted Rotowiper make the unit effective on crops, says company director Dougal Lamont.

The model 6M FU600 linkage Rotowiper has wider 11-inch flotation tyres. It tows without bouncing and can go into more areas, Lamont says. “It can go into a crop situation where you get softer dirt, float across the ground and follow the contours. We can operate it much closer to what we don’t want to touch.”

Its 200L tank allows it to cover up to 25ha without refilling, depending on the number of weeds being treated.

“It can make [weed control] really cost effective,” Lamont says.

Strategic weed wiping has taken off amongst contractors says Lamont. “We’ve had a lot of interest from spraying contractors [at this year’s National Fieldays] which we’ve never had before; in the past they’ve they never come on site.”

While the 6M machine is the largest on offer commercially in New Zealand, the company has larger units used

by Australian and US customers. “We’ve sold 9m and 12m weed wipers to customers there. An American customer had two of our 6m machines, sold them and bought a 12m one.”

Tel. 03 308 4497 www.rotowiper.co.nz

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Rural News // august 21, 2012

machinery & products 47

Many uses for new Cambridge roller THREE IMPLEMENTS are embodied in one in Hubbards Machinery’s new Cambridge roller (model 3000 24 SHT HLT RST), says company director Ian Prime.

The device can simultaneously roll, harrow and plant, largely thanks to its modular system, says Prime.

The modular system allows operators to choose how the roller is set up and buyers may choose between plain rings, breaker rings and coils 20-26 inches. Chain harrows can also be mounted between rollers

controlled road wheels for faster travel speeds.

Would-be customers are enthusiastic about the developments, says Prime.

“People are excited to see a change in the 3M roller design because it hasn’t been changed in 20 years.”

The roller weighs 2.3 tonne, has cast steel rims, a steel roller frame and a 100 x 100 by 200 x 200 box on it. Durability is also increased with the use of side overlapping rings, says Prime. These also allow the company to keep the roller within 3M dimensions.

With effective coverage

Hydraulic levelling tines mounted at the front of the roller give the operator a more level seedbed which is complemented by the airseeder mounting on top of the roller.

The Cambridge roller airseeder mounting is compatible with almost any air seeder and will work with any air seeder hopper size available on the market, says Prime.

But it is designed to work best with the 330L PJ Green air seeder.

The 3M is narrow enough to be towed without a pilot vehicle and the roller has hydraulically

designed to work best with the 330L PJ Green air seeder.

3M is narrow enough to be towed behind a vehicle without a pilot vehicle and the roller has hydraulically controlled road wheels for faster travel speeds.

Potential customers have been enthusiastic about the changes says Prime, “people are excited to see a change in the 3M roller design because it hasn’t been changed in 20 years.”

The roller weighs 2.3 tonne has cast steel rims a steel roller frame and a 100x100 by 200x200 box on it. Durability is also increased with the use of side overlapping rings says Prime which also allows the company to keep the roller within 3M dimensions.

Effective coverage is 2.2ha per hour, Prime says.

Tel. 03 308 3539 www.hubbardsmachinery.com

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Tel. 03 308 3539 www.hubbardsmachinery.com Ian Prime, National Sales Manager Hubbards Machine, pictured with the new 3-in-one Cambridge roller at this year’s National Fieldays.

EW

M

O

L E D

N

3 in 1 machine THE NEW 3000 24 SHT HLT RST Cambridge Roller from Hubbards Machinery is three implements in one says company director Ian Prime.

The device can roll, harrow and plant at the same time says Prime, largely thanks to its unique modular system.

The modular system allows operators to choose how the roller is set up and customers can choose between plain rings, breaker rings and coils 20”-26”.Chain harrows can also be mounted between rollers.

Hydraulic levelling tines mounted at the front of the roller give the operator a more level seedbed which is complimented by the airseeder mounting on top of the roller.

The Cambridge roller airseeder mounting is compatible with almost any air seeder and it will work with any air seeder hopper size available on the market says Prime but has been

of 2.2ha per hour, this unit powers through planting work, the company says.

www.kinghitter.com

60hp Shibaura 460 tractor

Power shuttle transmission Smooth forward/reverse direction Changes operated by a lever near steering wheel Electric independent PTO

Powerful Hydraulics 45 litres of flow. 3 double-acting 66 double-acting valves valves 1975kg’s left lift at atlink link ends. ends.

Fully built in Japan Japan

Also in stock . . .

Shibaura SX-24 Sub Compact 24hp with hydro trans New Shipment 54” or 60” mid-mount mower included in price Now just $19,990 plus GST Fully built in Japan Contact the importer

Paul Wilkins Tractors Ltd for more details on 03 688 2031 70 Racecourse Road Washdyke Phone (03) 688 2031 pwtractors@xtra.co.nz

Rural News // August 21, 2012

48 machinery & products

High-tech farms help underpin self-sufficient economies n e i l k e at i ng

ROBOTIC MILKING of housed cows, ‘slow’ and organic foods and bioenergy are three standout impressions for 28 New Zealand farmers who arrived home on August 5 from a 25-day tour of Scandanavia that closed with a brief stop in Russia.

Led by Farm-To-Farm Tours (FTF), Rangiora, the trip began at Bergen, on Norway’s coast, and ended at St Petersburg. They visited 20 farms, six of them dairy, the largest milking about 300 cows.

FTF principal Ross Macmillan, a Lincoln agriculture graduate with 40 years as a farm consultant and tour operator, led the trip, the com-

pany’s third to the region – Norway, Denmark, Sweden, Finland and Russia. The company has organised and led 12 trips in the last three months, “catering largely for semiretired farmers seeing this as their time to travel”.

Macmillan told Rural News the company chose Scandanavia for its population size – similar to New Zealand’s, spokenEnglish prevalence and

hugely successful economies.

“Of course, we were there in high summer, 25oC, and it’s difficult for New Zealand farmers to imagine living and farming six months of the year under snow, but that’s the reality. So on visits to six dairy farms we saw every cow housed and producing 7000-9000L of milk (500-700kgMS/cow).

Most of these are robotically milked.

“The cows average 3.5 milkings/day and the trend… well it’s more than a trend, is to milk by robot split about 50:50 between Lely and DeLaval. The machines are strategically located and the labour saving is striking.”

The bank interest on the $250,000 capital outlay may well be much less in these countries than the yearly wage of dairy shed workers the robot

Fortima

Variable round baler

EasyFlow pickup

replaces.”

One farmer cautioned on robots about the need for ready availability of maintenance and repair handy to the farm. “If you have 50 cows wanting milk at midnight and a machine breakdown, that’s a lot of frustration and milk down the drain.”

‘Slow’ food, Macmillan says, is another term for locally produced food.

“We ate the local fish in Bergen, local pork and beef, and all the seasonal berryfruit and vegetables throughout Scandanavia, much of it organic, driven

by EU incentives for such produce. The EU monetary incentives for this are

substantial.

“Of course, one Kiwi visitor Kiwi asked ‘Why bother to produce milk at high cost? Just import it from New Zealand’.” But this takes no account of their collective memory of having been through two world wars. They’re keen to protect their food supplies and to eat local.

“These economies are very buoyant of course – notably Norway’s, on the back of North Sea oil and gas. Those cities – Oslo, Copenhagen, Stockholm and Helsinki – have many internationally recognised companies, many highly successful.”

Timber is huge in

Sweden and Finland especially, and the wood is slow-growing and high quality. Some 30% of Denmark’s energy needs are met by biofuels and wind.

“They have no qualms about burning wood and straw for heating. We looked at furnaces 8m long x 4m wide x 4m high, running at 300oC. They use a front loader to feed in enormous logs and this heats water that’s piped to houses, barns and animal sheds including piggeries.”

This heat also dries grain harvested at 18-20% moisture and dried to 14.5% for storage.

Tel. 0800 38 38 747 www.farmtofarm.co.nz

MG series Feeders

GERMAN QUALITY WITH A NEW EDGE ■ EasyFlow camless pickup: allows quiet running and less wear and tear saving service and maintenance costs.

■ Multicut system: new cutting rotor gives a superior quality cut making bales that are easy to break up and spread.

■ Variable chamber: for higher density silage bales or up to 1.8m bales in hay and straw.

For pricing & brochure call now For technology that works!

0800 88 55 624 www.tulloch.co.nz

The MG feeders keep contamination from getting into the milk, meaning quality for calves. They are self-leveling and have a simple ‘click-andclean’ system so you can quickly wash out the tank and manifolds. With a variety of tank sizes and a range of 26 to 80 teats; it’s perfect for simplifying the whole feeding process on any sized farm!

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Rural News // august 21, 2012

machinery & products 49

Kiwi sheep handler wins Aussie accolades WAYNE PERKINS and Nick Wansink travelled recently to Australia to display the Perkinz range of sheep-handling equipment at the Sheepvention field days held yearly in Hamilton, Victoria. Their products received four awards.

“We popped across the Tasman primarily to show off our crutching trailer, received well in the Australian market especially with its adjustable roof,”

said Perkins. “And we entered our new model drenching race and recycled plastic sheep panels in the inventions category.”

DrenchMaster won three awards including best overseas exhibitor, and the sheep panels won first prize in the yards and gates section.

The DrenchMaster is a 3m long race with a swinging side panel that allows fast and efficient han-

dling of sheep and lambs when vaccinating, drenching, etc.

The sheep panels are made from 100% recycled plastic, making them strong yet light and are

great as a lead up race to sheep-handlers, lambing pens, etc.

Perkinz products are made in Dunedin by E. B. McDonald Ltd. They are sold in Australia, Canada

and the UK. www.perkinz.co.nz

Wayne Perkins holding one of the Perkinz sheep panels at Sheepvention.

TENDER

Power Farming has changed brands, so we need to move these big units on.

Sales steady INDIA’S TRACTOR and automotive giant Mahindra in July maintained strong tractor sales at home and overseas.

The $15.4 billion company’s farm equipment sector at home sold 15,495 tractors (15,699 in July 2011). Total tractor sales (domestic plus exports) in July 2012 were 16,521 (16,692). Exports in July 2012 were 1026 (993).

Mahindra has a presence in automotive, agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two-wheel vehicles. It employs 144,000

people in 100 countries.

In 2011 it bought a majority stake in SsangYong Motor Co, Korea. Also that year it entered the Forbes Global 2000 list of the world’s biggest and most powerful listed companies.

Dun & Bradstreet rank Mahindra No 1 in the automobile sector in its list of India’s Top 500 companies.

Gross revenue during the quarter ended June 30, 2012 grew by US$3.5 billion from US$2.8 billion) in the previous year’s first quarter. Profit during the June 30 quarter was US$204.8 million vs US$132.1 million in Q1 2011 – up 55.0%.

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MACHINERY SALES FORKLIFT approx 6 ton lift Linde, ex container freight yard. Long forks, side shift CAT 922 LOADER Approx 1.5m bucket $15,500 Forks or bale grab possible extras ROTARY TRACTOR BROOMS New & used, rear 3 point linkage fitting .......................................................................... Priced from $4000 WINCH UNITS Tractor 3 point linkage, approx 6T plus capacity. Suit pulling timber/recovery .................................................................. $6000 HYDRAULIC TIPPING TRAILERS 4 – 8T. .......................... Priced from $3500 TRAILER DIESEL TANKS Approx 600 + 1300 litres ROOT RAKE D4 size or adapt for digger /silage .............................. $2000 INTERNATIONAL B275 Diesel Tractor + Tray ................................... $1800 SILAGE CRATE/GILTRAP Lift on truck or trailer 4 x 2 x 2m high, steel, timber floor LEYLAND 255 Tractor & FEL, new brakes, alternator. Ext. hyds for wood splitter ............................................................................................. $3500 MEAL SILO Fibreglass, galv. stand, slide opener. Approx 1.5 cu metre capacity ............................................................................................. $600 FARM BIKE TRAILER Agristeel, galvanised + calf crate FARM BIKE FERT SPREADER New brgs, ............................................. $850 TRENCHER – PTO drive, use with hydro or creep speed tractor TRUCK & TRAILER TYRES/WHEELS 750x20, 825x20, 900x20, 1000x20, 1100R22.5, used, varying tread. .................. Priced from $100 CATTLE CRATE, Steel single deck,2 pen, 2.4 x 5.6 x 2m high, mesh floor PLASTIC AND ST/STEEL CARTAGE TANKS 1500 litres, cylindrical horizontal, free standing. Ideal milk/spray. ...........................................From $1,200

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TENDER: The above units are offered for Tender • All Trades considered • Tender Terms apply: The highest or any tender will not be necessarily accepted. Tenders Close 3 September 2012 and are to be exclusive of GST. For more details contact: Graeme Rogers 027 221 1212 Brett Maber 021 222 9220

MAKE AN OFFER!

Rural News // August 21, 2012

50 motoring

Final defence of a mighty realm adam fr icke r

Fast and furious THE CRC Speedshow, held recently at the Auckland Showgrounds, featured fast and furious machines young and old. The event seems to gain more momentum each year and principal sponsor CRC should be happy with the prolific marketing done by show organisers; the two day event drew big crowds. A mix of static displays and stunt driving, the event was “professionally put together”, according to exhibitors Rural News spoke to. Pictured above: the new Holden Colorado, the Hot Rod display, and a Victory cruiser.

WHEN DRIVING a precious motoring icon you tend to forgive shortcomings, especially when you are driving the last of the breed.

The Defender, Land Rover’s brand touchstone, has fought a good fight, but time has almost overtaken the old girl. To meet tough EU emissions standards Land Rover has dropped a modern turbo-diesel engine under the hood to extend its life; modern safety standards will be harder to meet with what is fundamentally a 60-year old design. A replacement is in development.

The cleaner engine is a 2.2L 4-cylinder – an honest toiler, though not particularly refined, which produces ‘power’ of 90kW @ 3500rpm and torque of 360Nm @ 2000rpm. Not quick but it gets the job done and does not exceed the limitations of the chassis as a more powerful engine might.

The rest of the mechanicals are old school and rugged: beam axles at

both ends, heavy suspension, high/ low range transfer case and permanent 4WD, augmented by modern technology in the form of anti-lock braking and electronic traction control. Suffice to say, it will drive over almost anything off-road.

The interior is more liveable than older Defenders and equipment levels attempt to support the $71,500 price.

The 110 Station Wagon we drove had electric windows, partial leather trim, air con, central locking, etc – all stuff you’d expect as standard in most vehicles these days. You’re paying a premium for the badge, let’s face it.

We could write screeds about the shortcomings of this vehicle if we were to judge it by modern standards. As we said, it’s an icon, so let’s judge it on its own merits.

The overriding impression left by the big white

Defender is that it’s a huge amount of fun. Every trip is an adventure. There are few ‘new’ cars left in which you have to be so fully involved in driving – as opposed to just sitting and steering. Every gear change is a deliberate effort, every corner must be considered in advance.

It’s no hardship though. Driving the last of the old Defenders is a glorious affair, rich in nostalgia, and yet the car functions well enough in the modern world if you avoid tight urban environs.

And did we mention fun? Just ask all the other Defender drivers that waved enthusiastically when we passed by; they understand.

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Tanco has built up a respected and much valued brand in the New Zealand market for over 20 years. We now wish to appoint an importer to continue to build on our strong success.If you feel your company aspires to “be the best” and would like to join our impressive team of worldwide importers please contact: Martin Maye – Sales Manager Tanco Autowrap Ltd mmaye@itanco.com | www.itanco.com 01

Culvert Pipes New Zealand’s CHEAPEST Culvert Pipes!

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Rural News // august 21, 2012

rural trader 51 CRAIGCO SENSOR JET DEAL TO FLY AND LICE • Cost Effective • Complete Package • Unbeatable pricing • Performance Guaranteed

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