Rural News 4 September 2012 by Rural News Group

niche markets

stating the case

Inspirational marketing ideas from Hort NZ’s recent confererence. page 36

Crown prosecutor Ben Vanderkolk gives his view on succession planning. page 10

RuralNEWS

no favours Feds’ at pains to point out that Transpower’s sponsorship will not affect its views.

page 27

to all farmers, for all farmers

september 4, 2012: Issue 522

Fight or flight? OUTGOING FONTERRA chairman Henry van der Heyden will this month decide whether to stay on as a director. Van der Heyden’s three-year term finishes at the end of next year. However, he’s stepping down from the chairman’s role at the annual general meeting. He told Rural News he will be making a decision “within a month”. “I am still discussing it with my family.” Van der Heyden has been Fonterra chairman since 2002. He will be replaced by John Wilson – provided he is re-elected to the board by farmer shareholders. Nominations for Fonterra board elections open next week. If van der Heyden steps down from the board this year, there will be two vacancies for farmer-elected directors. – Sudesh Kissun

www.ruralnews.co.nz

RUC off Minister! pete r bur ke

A CANTERBURY agricultural contractor, Robert McCarthy, is angry at Transport Minister Garry Brownlee’s claim (Rural News Aug 21) that every tractor has GPS and can attach a hubometer, enabling the owner to calculate road

user charges (RUCs) if the machine’s speed exceeds 40km/h on public roads. MoT has reviewed the RUC system and abolished time licences. The new law took effect on August 1. McCarthy, with 14 tractors and 25 staff, does not object to paying RUCs to use the roads but is annoyed at the

getting on

to pay an exorbitant amount to a commercial company with no interest in the maintenance of the roading system.” (McCarthy refers here to a company that operates the RUCs system.) He says it would cost him $1500 to fit a device to each of his 14 tractors plus $89/month to collect the data, let alone pay any RUCs. “It will cost our business $60,000 in the first year plus ongoing astronomical costs.” McCarthy refers to an electronic hubometer that measures road-distance plus details of off-road travel. “Problem is it doesn’t start until the tractor moves 50m from the road centre-line. “It’s not foolproof and causes problems by charging for every minute you are on the road even though the law states you don’t have to pay RUCs on a tractor traveling slower than 40km/h. Effectively you’re paying tax… and the time involved in claiming this back is another cost to our business.”

About the 40km/h rule ROBERT MCCARTHY disagrees with the new rule that a tractor no longer needs a warrant of fitness if it travels slower than 40km/h on open roads. He will continue to get WOFs and certificates of fitness regardless of the new regulations because he’s concerned about safety, he says. “It gives us the backing that we’ve had someone independent – at a cost of just $65 twice year – check our vehicles. “I’d sooner have that money spent than find one of our vehicles run into by the school bus with our kids in it because the lights are not working. We owe it to the public to be as safe as possible.” Also, the new regulations fail to reflect the value of newer, much safer tractors, he says. New Zealand should be endorsing the new technology fitted to modern tractors, including better ABS brakes, tyres, sprung axles, steering systems and other safety devices.

South Canterbury Rural Helicopters prepare to spin 125kg/ha of ammonium sulphate onto wheat at Nick Ward’s, Temuka. “We’ve done a wee bit like this in the past but never as much as this year,” Ward told Rural News. Nearly 300mm of rain in two weeks, early last month, left paddocks impassable and crops hungry for nutrients. Now weed control is the challenge. See page 42

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minister’s assumption he can easily calculate the RUCs using his GPS. McCarthy says the Transport Agency and MPI have told him they agree it’s dumb. “Mr Brownlee needs to get outside and get some country fresh air and realise that tractors have GPS units for guidance in the paddock; it has nothing to do with mapping of roads. There are only two GPS distance recorders approved by the NZTA and neither is fit for agricultural use.” McCarthy says a sensible solution would be to provide for RUCs in the registration of tractors – not hard to do as the new legislation has increased by $24.50 the registration fee for tractors travelling slower than 40km/h to cover the cost of road usage. Contractors will happily pay for the time they spend on the roads; such a system would be simpler and reduce compliance costs, he says. “National promised to take away the red tape, then they put this in place, forcing us

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Rural News // september 4, 2012

news 3 issue 522

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High dollar curbs dairy payout SU DESH KISSU N

News �� 1-18 World �� 20-21 Agribusiness �� 22 Markets �� 24-25 Hound, Edna �� 26 Contacts �� 27 Opinion �� 26-29 Management �� 31-42 Animal Health �� 44-49 Machinery and Products �� 50-57 Rural Trader �� 58-59

FONTERRA EXPECTS the current squeeze in global milk supply to lift dairy prices in coming months. However, farmer returns will remain at the mercy of the high New Zealand dollar. Fonterra, last week, revised its 201213 payout forecast range by 30c to $5.65 - $5.75/kgMS blaming the rising Kiwi dollar. Co-op chairman Henry van der Heyden says the revised payout factors the currency remaining at its current level and prices firming in coming months. He says the crippling drought across much of the US has pushed up corn prices. As input costs rise, US farmers will be forced to cull cows, leading to drop in milk production. This will put pressure on global milk supply. Van der Heyden says a wet summer in parts of Europe and lack of monsoon rain in India, the world’s largest milk producer, could also impact supply.

“So we expect dairy prices to increase as the global milk supply comes under pressure,” he told Rural News. “While we’re disappointed to revise the payout forecast range, it’s driven solely by the currency and there’s nothing we can do about that.” The revised Fonterra forecast comprises a lower farmgate milk price of $5.25/kgMS, down from $5.50/kgMS and a lower forecast net profit after tax range of 40-50 cents, down from 45-55 cents per share. But Fonterra’s payout range is Henry van der Heyden higher than rivals Westland Milk pared to a year ago. ($5 - $5.40/kgMS) and Open Coun“We’ve actually seen improving try ($5.30-$5.50/kgMS). Van der Heyden says Fonterra is prices in recent GlobalDairyTrade optimistic prices will rise and has fac- (GDT) trading events, but the strength of the Kiwi dollar is eroding any gains,” tored that in the revised payout. Overall, the GDT trade weighted says van der Heyden. He urges farmers to budget cauindex was up 4.1% over the past four events, underpinned by a 7.8% rise on tiously. Fonterra is maintaining current August 15. However, prices are low com- advance rate payments to farmers. This

would mean no change to farmers’ cash flows, he says. The high currency is also affecting Fonterra’s consumer businesses. A difficult retail environment affecting the Australia-New Zealand business isn’t helping either. Fonterra chief executive Theo Spierings says this has led to the lowering of net profit after tax range to 40-50 cents a share. Spierings agrees that there appears to be some early signs of strengthening dairy prices, partially driven by global weather events. However, any gains would continue to be impacted by the strong New Zealand dollar, he says. “Our forecasting anticipates some recovery in global dairy prices but we don’t know how strong this recovery will be or when it will kick in. For this reason, our farmer shareholders should continue to plan cautiously.”

NAIT to review calf registration a n d r ew swa llow

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

THE NAIT requirement that dairy farmers register rearer calves before moving them to saleyards is to be reviewed. The origin of such calves is automatically recorded by saleyards scanning the calves’ tags, so traceability is maintained regardless of whether the dairy farmer has registered the movement or not, NAIT told Rural News. However, as the rules stand, if the calf and its movement were not registered with NAIT within 48 hours of transport, the vendor has committed a breach. NAIT chief executive Russell Burnard says in the first instance breaches will be followed up with a reminder, but acknowledged there appears to be an opportunity to simplify the process

Still traceable: calves bought or sold through saleyards are still traceable, even if the vendor hasn’t registered them, says NAIT.

in this example. “Once we are through calving we will do a bit of a check on what has worked and what hasn’t, and what are the areas we could improve on.” Currently, when rearers log on to the NAIT website to confirm purchase

of calves, if they’ve not been registered by the vendor a warning notice pops up saying these calves do not have full traceability. Burnard says the wording of that warning will be reviewed too. “The traceability is there so the lan-

guage of that is one of the things we will be looking at.” Rearers can enter a birthdate for the animal, even though it wasn’t born on their property. Of an estimated 68,000 “herds” which will need to be NAIT registered, including lifestyle owners, by early last week 46,000 had done so. “Obviously we would like more but if you are in the sector, and you don’t register, you’re increasingly going to find it’s a problem to sell your animals, so it will be self-correcting.” As for complaints about saleyards and/or stock agents charging an additional fee to cover the cost of implementing NAIT, that is a matter for farmers to take up with the agents and yards, says Burnard. “We know there is competition in that market.”

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Rural News // september 4, 2012

4 news

Carter hails boot camp The Minister for Primary Industry is hailing the recent agri ‘boot camp’ at Stanford University in California as ‘an outstanding success’. David Carter was a participant for four of the five days and told Rural News that holding the boot camp at Stanford, which is one of the top business schools in the world, helped set the tone for the discussions. “As soon as you drove on to the Stanford campus you knew you were in a very special and high-powered institution that feeds off its proximity to Silicon Valley. The discussions that took place wouldn’t have happened if it had been held in a luxury hotel setting.” Carter believes to have that many NZ chief executives away from everyday business cocooned at Stanford University was a tremendous achievement. “Immediately there was a real binding of everyone with a common objective around ‘what can we do to grow prof-

itability in the primary sector’,” he says. A key point to arise

was the extreme value of the New Zealand brand and what can be done to

Minister talks TPP with US farmers After his four days at the Stanford boot camp, David Carter spent another week in the United States meeting with farming leaders and politicians in largely rural states about the Trans Pacific Partnership. He says his key message to all of them was that New Zealand was not a threat to them. But Carter believes the US dairy industry is under pressure because of the drought and the farming system they run. “It’s very much a cut the crop, cart it to barns and feed it to the cows 365 days a year. Many milk three times a day in the drive for more production, but are still losing money.” He says the US dairy sector is concerned about the impact that New Zealand might have on them if the TPP went ahead. “I tried to explain to them that there was no way that if the TPP was to take place that we would pose a threat to them. The US is 15% of world dairy production and New Zealand is only 2%. The reality is that they have other issues to resolve.” Carter adds even if a TPP is signed he can’t see New Zealand selling massive amounts of dairy products to the US. Carter says the American election in November will delay the TPP and it will be next year, at the earliest, before any deal could be signed.

enhance and protect it. “There was also agreement that as a nation and as individual companies we’ve got to strive to maximise what we can get out of the value chain to return back to New Zealand. That led to a discussion on how can we collectively get more out of the value chain and not leave any more than we have on the table for the transporters, the marketers, the agents and the retailers,” he adds. Carter says another key point was the need to drive productivity gains. The boot camp has been described as a ‘coalition of the willing’ and there was an absolute willingness by all the participants to come back to New Zealand and look at serious collaboration. Carter believes it marks a huge shift in the way that NZ Inc. might operate in the future. “There’s recognition by the industry that there are opportunities out there to strive to do better.”

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Growers wary of Biodiesel sale AND R EW SWALLOW

GROWERS FEAR Solid Energy’s decision to sell its Biodiesel New Zealand could leave them out of pocket. The State Owned Enterprise told growers of its intentions at a meeting last month, and confirmed it publically last week as part of a wider announcement of strategic and structural changes. “Biodiesel New Zealand is a business we no longer believe we should be in and we are looking to be out of that at the earliest opportunity, in whatever form,” Solid Energy chief executive Don Elder told the media briefing. Solid Energy says since Government’s renewable fuels grants scheme ended June 30, Biodiesel “has been unable to meet Solid Energy’s performance expectations.” What those performance expectations are isn’t clear, but Solid Energy’s accounts have repeatedly shown losses running into $millions for its renewables business, which included the also-for-sale Nature’s Flame pellet business. Nick Murney, Agribusiness Manager for Biodiesel New Zealand, told Rural News Biodiesel New Zealand hasn’t yet recorded a profit but “there’s value in the business and the business is on track.” He’s reassured growers Solid Energy and Biodiesel New Zealand will be standing by growers’ contracts, however he couldn’t say whether honouring all existing contracts with Biodiesel New Zealand is part of the conditions of sale which Deloitte will

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be negotiating on behalf of Solid Energy. Chair of a growers’ group, Jeremy Talbot, told Rural News they’d heard Solid Energy was looking for a partner in the Biodiesel business, but until the meeting last month were unaware it was to be sold outright. He’s concerned that if the business folds, or Solid Energy sells only Biodiesel’s assets, rather than the business as a going concern, contracts for this season’s crop could be compromised. “We’ve been told our contracts will be looked after but I want that in writing. The contracts only mention Biodiesel New Zealand. If it folds or isn’t sold as a going concern we could be left high and dry.” Murney says 40 growers contracted autumn sown crops to Biodiesel New Zealand and it is signing spring contracts at present, though he declined to reveal at what price as there is a differential between North and South Island deals. Talbot believes the disposal is part of Government’s plan to sell a stake in Solid Energy. Finance Minister Bill English, last month, admitted the mining and renewable operator needed to be in considerably better shape to be sold. Controversy has dogged Biodiesel New Zealand’s operations since it was bought by the SOE in 2007. Large areas of crop which were sown on leased land in the Mackenzie Basin and other non-traditional cropping areas failed due to the geography and what many believe were fundamental agronomy mistakes.

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Rural News // september 4, 2012

news 5

Case made for company vs trust p e te r burk e

THOUGH MANY farms are in trusts, Palmerston North Crown prosecutor Ben Vanderkolk believes this creates problems in succession planning. He says essentially a trust is ‘just a bundle of rights and obligations’ which doesn’t ‘own anything’. The obligation of the trustees is to look after the interests of the ‘beneficiaries’, in most cases siblings. “A trust has no corporate structure so it doesn’t grow or prosper or

manage anything. Trusts are very difficult to unscramble. The key problem is that the trustees are the owner of the whole asset – it is difficult to administer in a way that children can get funds out or have their entitlement distributed to them. And it’s rare that children will challenge the trustees, who are usually the parents alongside the family solicitor and accountant.” Vanderkolk says from what he’s seen, trusts have a place in protecting assets but are poor vehicles for farming operations and capital holding. And struc-

is reflected by the value of the turally they are difficult to shares, directors are charged operate. A question worth with increasing shareholder asking, when considering setvalue and capital can be manting up a trust, is, can you guaraged to successfully fund the antee that you can control it operation.” after your death? Ben Vanderkolk With a company structure, “With a company you the children could be encourcan have just enough capital needed to run the business, and the rest aged to participate in its governance as of the capital generated as dividends, opposed to merely being employees on profits and retained earnings is available farm. Parents or owners should find out for investment off the farm or to buy what their children want to do and make shareholders out. There are advantages sure the entity has sufficient capital for in a company structure because equity them to pursue off-farm careers if that’s

what they want. “Fundamentally a company director has to protect the value of the company shareholding whereas a trustee has a duty to protect and promote the benefit and maintenance of the beneficiaries, not necessarily grow the wealth of the business. Farmers should be able to concentrate on farming and governance of the farming enterprise rather than worry about the discharge of their fiduciary duty as trustees.” • For a profile of Ben Vanderkolk turn to pages 10-11

Fonterra director nominations open NOMINATIONS OPEN next week for Fonterra board elections, with at least one vacancy for a farmer-elected director. Last month’s shock resignation of Colin Armer means a new director will be elected at the co-op’s annual meeting later this year. Armer was one of three board members retiring by rotation. The other two – chairmanelect John Wilson and agribusiness academic Nicola Shadbolt – are seeking re-election. Returning Officer Warwick Lampp, Electionz, has confirmed nominations open on September 10 and close on September 28. Voter packs don’t go out to shareholders until November. Voting will close prior to the annual meeting, the date for which is to be finalised by the board. Former Fonterra Shareholders Council chairman Blue Read has thrown his hat in the ring. The Taranaki farmer says he has been approached by Fonterra farmers to contest the election. Read says there’s a vacancy on the board and there are “a lot of capable people” who could do the job. “I’ve been approached by some farmers to contest and for me it’s all about how can I add

value to the co-op,” he told Rural News. Read chaired the council when farmers in July 2010 approved TAF in principle. He supports TAF but wants safeguards including tighter limits on the size of the Fonterra shareholders fund. A motion to curb the fund size failed just short of the 75% majority required at the co-op’s special meeting in June. Read says he will take part in the candidate assessment panel (CAP) process that assesses the capabilities, experience and qualifications of director candidates and provides shareholders with more information on which to make informed votes. While the CAP process is open to all director candidates, it is not compulsory. Fonterra farmer groups which opposed TAF (trading among farmers) are also considering putting up candidates. Waikato-based Our Co-op member and former Federated Farmers Dairy chairman Lachlan Mackenzie says he hasn’t considered standing but has been approached. Last year Fonterra board elections attracted nine candidates. Northland farmer Ken Hames, who last year stood unsuccessfully, says he hasn’t made up his mind whether to stand again. Another unsuccessful candidate Maurice Hardie, Southland, has confirmed he’s not standing.

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Rural News // september 4, 2012

6 news

International opportunities for NZ farming PETE R BU R KE

China and South America are being singled out as places for the New Zealand sheep and dairy industries to develop new initiatives. A report by Price Waterhouse Cooper (PWC),

commissioned by New Zealand Trade and Enterprise (NZTE), gives a strategic analysis of the opportunities there for New Zealand companies. The report recommends setting up: A $430 million global investment fund to buy

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and develop large New Zealand-run dairy farms; A joint-venture sheepmeat processing operation in South America using New Zealand technology and skills; A lamb marketing company in China to coordinate supply and to encourage investment by local distributors; A large-scale sheep farming operation in China with Landcorp as a lead player; A food safety entity in China drawing on New Zealand expertise. Each recommendation is backed by detailed analysis of the opportunity. For example, in respect of the China sheep farm, the report points to Landcorp’s agreement in principle with Shanghai Pengxin (buyer of the Crafar dairy farms). Landcorp would bring considerable expertise to such a venture and would, because it’s a quasi-government agency, also bring “political credibility”. NZTE global agribusiness leader Haylon Smith told Rural News many countries including China are looking to secure food supplies and are interested in protein production systems. Smith says New Zealand has a niche role to play because of its expertise in protein production from pasture. “The ques-

Global farming ventures could be worth nearly $1billion to New Zealand.

tion is how do we take the systems we’ve refined and deploy these in other countries, then look at

that would flow from the five ventures to companies and scientific organizations.

China, but also in Brazil and Uruguay. It might be changing grass species or looking at tropical grasses

New Zealand companies already operate in China and South America, but the challenge is to turn them into – or create – large multi-national farming companies which we don’t now have. – Haylon Smith new business models for achieving significant wealth generation for ‘NZ Inc’?” The report indicates global dairy and food safety ventures could collectively be worth nearly $1 billion to New Zealand. And it points to significant downstream benefits

Smith says New Zealand’s pasture-based type systems can operate in parts of southern China; and other expertise, e.g. genetics, would apply in any farming system. “In any area we operate in there’s going to have to be a great deal of adaptation – not only in

or genetics. We can see that adaptation by the New Zealand companies already operating in these areas.” New Zealand companies already operate in China and South America, Smith observes, but the challenge is to turn them into – or create – large

multi-national farming companies which we don’t now have. Regarding concern about the potential to lose New Zealand intellectual property (IP) in such ventures, Smith says anyone from overseas can get it anyway; there’s no way to stop IP leaking from New Zealand. “What we’re asking is, ‘what models would allow us to capture more value from our IP?’ ” NZTE has run seminars on the report in Auckland, Wellington and Christchurch. Though any initiatives have to be company- or industry-led, NZTE will facilitate in any initiatives by companies.

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Rural News // september 4, 2012

news 7

No clues on latest Psa outbreak Pa m Ti pa

EARLY INVESTIGATIONS could not determine how the devastating kiwifruit vine disease Psa-V entered the Waikato. Airborne spread was unlikely given the isolated location of the two Te Awamutu orchards found to have the disease, Kiwifruit Vine Health chief executive officer Barry O’Neill told Rural News. “We have looked at whether there’s any obvious risk movement … we haven’t been able to identify anything,” he says. “The growers whose orchards tested positive had good hygiene practices to try and stop it coming in. Often with these things it is hard to pinpoint. That happened with Franklin – we were not able to conclusively show how it came to Franklin (in 2011).” The infected Waikato orchards were growing the Gold cultivar Hort 16, a previously lucrative Zespri Gold crop which has proved highly susceptible to Psa-V and has virtually been wiped out in the country’s biggest kiwifruit growing region of Te Puke, near Tauranga. Pockets of Hort 16 are still being grown disease-

free in other areas of the country including Northland and Nelson. Investigation is continuing on how it reached the Waikato, however O’Neill believes the spread of Psa-V to the area may have been averted if legal powers under a proposed National Psa-V Pest Management Strategy, which growers were voting on over the last two weeks, had been available. If the strategy gets the grower nod, O’Neill hopes to get a quick turnaround on ministerial approval and to have legal powers in place by early next year. No further Waikato orchards had tested positive to Psa-V last week. A ‘controlled area’ has been established within a 12km radius of infected orchards that incorporates 26 others growers. “There’s movement controls in place that those growers are monitoring and we are advising them to maintain strict orchard hygiene and crop protection practices,” he says. The Waikato outbreak comes on top of reports the Green Hayward variety is showing more susceptibility. Hayward has been considered more resistant than the Gold Hort 16. “Green is showing

in brief green light on milk A RULING endorsing Fonterra’s farmgate milk pricing should allay doubts among potential investors. Competition watchdog the Commerce Commission has ruled Fonterra’s setting of the farmgate milk price is consistent with the milk price regime set out in the amended Dairy Industry Restructuring Act (DIRA). Federated Farmers Dairy chairman Willy Leferink says the commission’s view of the way Fonterra sets its milk price has

been a nagging doubt for its farmer shareholders. “Fonterra said it and external experts said it: the way the milk price is set is fair and accurate and now we have the Commerce Commission agreeing. The commission’s assessment provides a solid basis for confidence that shareholders, the New Zealand public and wider stakeholders can have in the integrity of the farmgate milk price, says Fonterra chief financial officer Jonathan Mason.

Rural News 15x3 Dairy News

Notice of Elections Fonterra Co-operative Group Limited KVH’s Barry O’Neil says it has still not been determined yet just how Psa spread into the Waikato.

more signs, we’ve seen that overseas as well and it’s a reminder that no variety is resistant and we need to look after all our varieties against Psa.” The new Psa-V resistant Gold crop G3, which Zespri released for grafting this winter has also shown signs of susceptibility. “But in G3 we are not seeing anything more significant than we saw prior to winter,” O’Neill says. “As the plants get older they become more able to withstand bacterial infections, so the more juvenile ones are more susceptible and they need to be more protected.

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“There’s no such thing as a resistant variety to Psa but some of these new varieties are more tolerant, such as G3 or G14.” O’Neill believes if the pest management strategy goes ahead it “will provide the maximum benefit to those regions that are still free as well as those areas that have got it”. “Hopefully we will have legal powers in place by early next year, but rest of the strategy - the approach -would be implemented as soon as we could, probably in October.” Despite the challenges O’Neill believes the industry can recover.

Board of Directors, Shareholders’ Council, Directors’ Remuneration Committee Notice is hereby given that the following three elections will be held concurrently in 2012 for Fonterra Co-operative Group Limited. Board of Directors:

Election of Three (3) Directors

Shareholders’ Council (14 Wards):

Election of One (1) Councillor in each ward

Directors’ Remuneration Committee:

Election of Two (2) Members

Invitation for Candidate Nominations Nominations are called for candidates to stand for these three elections. Fonterra shareholders are eligible to stand for all three elections. Nomination forms and candidate handbooks can be obtained from the Returning Officer. Nominations must be received by the Returning Officer by 12 noon on Friday, 28 September 2012. Elections for Shareholders’ Councillors Elections will be held in the following 14 wards for the Shareholders’ Council: Ward 2

Whangarei

Ward 4

Southern Northland

Ward 5

South Auckland

Ward 8

Hamilton

Ward 9

Morrinsville

Ward 11

Western Bay of Plenty

Ward 14

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news 9 Flat outlook – report NEW ZEALAND’s primary industries are conservative in their financial outlook, 41% expecting revenues to stay the same after struggling through the last 12 months, according to a new survey. The latest MYOB Business Monitor reports 24% of small-to-medium enterprises in agriculture, forestry and fisheries expect revenues to grow in the 12 months from June 2012 and 27% expect decline. In the 12 months from June 2011 28% grew in revenue, 35% stayed the same and 35% declined (2% didn’t know). In the regular survey of at least 1000 businesses (about 150 primary sector) MYOB found a net 7% in agriculture and fisheries reporting losses over the last 12 months – amongst the biggest losses of any sector of the economy. MYOB general manager Julian Smith says these occurred when many factors were actually working in the sector’s favour. “Over the last 12 months, we’ve seen global commodity prices rising and historically high levels of production from New Zealand’s primary sector. However, due to a high dollar and the increasingly volatile international economy these advantages are not being translated into stronger growth.” Looking to the year ahead, agricul-

ture and fisheries businesses were less optimistic than other sectors about their performance, a net 3% (those expecting gains vs those expecting losses) of businesses expecting to lose revenue over the next 12 months. This made the agriculture and fisheries sector the only sector expecting a net revenue decline. However, Smith says a more conservative outlook is not uncommon in primary industries. Farmers tend to a ‘keep-our-headsdown-and-get-on-with-it’ attitude. But they also know that international conditions, especially in Europe, will remain volatile. New Zealand’s high dollar was a major source of concern, 40% of all businesses citing it as a key pressure and 11% reporting it placing “extreme” pressure on profitability. Price margins and profitability was the second most widely cited pressure, 38% of businesses in the sector reporting difficulty. “With the exchange rate so high and exporters receiving less for their products, maintaining profitability is a real struggle,” says Smith. “These results show that for the primary sector, our high dollar is still a significant roadblock for many businesses.” – Pam Tipa

NZ economy playing like the Polish rugby team PETE R BUR KE

WELL-KNOWN agri-businessman Colin Harvey laments the poor performance of New Zealand’s economy, telling Rural News that, in rugby terms, the country is performing economically at about the same level Poland would have had it been contesting the 2011 Rugby World Cup. Had New Zealand performed at such a level a huge public outcry would have been heard, but there seems to be quiet acceptance of our poor economic performance, Harvey says. “In my view, our generation has made a great stuff-up of it. The problem is we’ve placed too much emphasis on trading and not enough on

trying to make businesses. There are lots of infrastructure problems within that, including not having a capital gains tax and not having savings schemes. “On top of that, governments don’t seem prepared to actually make change. Ever since ‘Think Big’ we’ve run away from governments actually trying to do something.” Harvey points out New Zealand has come through a period in which food was a commodity and is now entering an era in which food will be scarce. “The question is ‘what are we going to do about it?’ The way we’re going is not much different from the past. A lot of other countries have shown the pathway. Look at Denmark which, with a fraction of our acreage, produces five

Colin Harvey

times the amount of food we do.” The country is hot at writing strategies and reports, but cool when it comes to taking action. “When I see something like the Riddet Report – a wonderful strategy and the guys have done a great job – I ask ‘what happens now?’ I spent two years in Trade and Industry developing a primary indus-

try strategy. I had a great team of guys and we put together a lot of good thinking, but trying to get some actual traction was bloody hard work.” Harvey hopes some good comes out of the chief executives’ boot camp. He says he’s a fan of the organiser, John Brackenridge, and points out that, in the end, it’s people who do things.

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Rural News // september 4, 2012

10 news

Prosecutor states the case for The Scott Guy murder trial propelled Palmerston North Crown prosecutor Ben Vanderkolk into national prominence. The case shook and shocked the rural community in exemplifying a farming relationship gone terribly wrong with tragic consequences. Another side to Vanderkolk is here discovered by Rural News reporter Peter Burke, in this exclusive interview. BEN VANDERKOLK’S upstairs office in the old ANZ bank building looks out over The Square in Palmerston North. The floors are polished timber and somewhere there’s still the old bank safe. Newspaper billboards tell of court cases he’s been involved in during 25 years as a Crown solicitor. To many people, the Scott Guy case was quite a bit about succession planning; the case has done much to raise awareness of this topic. Vanderkolk regularly advises on succession planning and he

plans to do more. He has a strong farming background, having grown up on a Waikato dairy farm. As an independent Crown solicitor Vanderkolk is free to do private and commercial legal work including relationship and property law and advising on succession planning. “My interest in succession planning came long before the Scott Guy case. It had no influence on me; it was just a high profile trial that had a succession element in it.” As a lawyer, Vanderkolk has seen failures in suc-

cession planning play out in court. “I’ve seen people tear themselves apart and never recover from it. Forced to go to court, they ask the court to solve the problem. Someone will make a decision and inevitably someone will not like it. There is nothing therapeutic about going to court.” Vanderkolk has also helped set and administer professional standards for the legal profession. For him the word ‘independence’ resonates more than any other. “You cannot under-

value the need for independent advice. I increasingly saw that family transactions tended to be dominated by persons who had held the family trust and some of this control had been built up over many generations. I wondered whether truly independent advice was ever a feature of these transactions. Lip service tended to be paid to independent advice and there was also a fear that the participants – namely the children – didn’t feel they had a place to ask for independent advice.

“Failures in succession planning play out in court and there’s nothing therapeutic about going to court.”

Let’s face it, there’s nothing evil about independent advice.” Ben Vanderkolk says a good succession plan usually starts when a consultant talks to all involved and gets an idea from them of their individual needs and expectations. This will form the basis of the strategy, necessary before any transactions

occur, or legal agreements or structure are created. A communications plan is here critical to the overall strategy. “If you are not good communicators by nature, you need to commit to a plan that compels and forces you to communicate on a formal basis, not just when the need arises.” Vanderkolk says com-

munication is much better now than in past generations when farmers’ wives were strong and dominant. “I’ve seen situations where a daughter-in-law wanted to ask legitimate questions but felt constrained. Generally daughters in-law have to live up to high expectations.” Ideally a succession plan should probably

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Rural News // september 4, 2012

news 11

succession planning start before a farm is even bought, he says, because the structure under which the farm operates from day one hugely influences what happens years later. Most cases require a choice: a trust, a company or both. Vanderkolk strongly favours a company structure, making it easier to pass on the farm to future generations. (More below on the pros and cons of trusts and companies.) Though structure is important, he says, farmers should first develop a strategy. “My sense is that too often farmers get swept away with the structure. It is often problematic to create a structure when a solution to a problem has been found.” Vanderkolk points out that unwinding transactions later can be costly and painful, hence the need to spend time in the planning phase. The first hurdle to developing a succession plan is the initial discussion; parents should initiate it – sooner rather than later. “I know an example of a husband and wife who gave their children – before they reached age 13 or 14 – equal shares in the farming company. It’s worked really well because each of them could take out their shareholding in time. As it’s turned out, they each want to be farmers and they were able to purchase their own farms with the assistance of the head farm. It might sound extreme, but it would make sense that every time a child was born they were automatically given a

share in the farm.” In the development of a succession plan Vanderkolk sees a role for someone such as himself who is ‘independent’ of the other advisors. He sees a trend nowadays, by people wanting a succession plan, to employing a consultant who gathers a lot of information about what everybody wants. “That’s valuable, but the next step is to ask, ‘what are we going to do and how are we going to get there? – the long term strategy; it’s that part I’d like contribute to. With my legal background and skill in putting together and running large trials with multiple components, I can give independent advice and keep testing strategy until people are satisfied.” This is the “stress testing” phase where every possible variable is tested against the overall plan or strategy. Vanderkolk believes farmers are egalitarian, like to be fair and may avoid making hard decisions in a family context. “But often if you make a series of fair decisions then you are not actually taking a leadership role by saying ‘this is how it’s going to be’. If you look at major family corporates in New Zealand, at some point in their history a leader in the family has taken it by the throat and said ‘this how we are going forward’.” Another feature of significant privately held family companies in New Zealand, is their solid

The farmer’s son BEN VANDERKOLK is the son of a Dutch immigrant who arrived, with many others, in New Zealand in the early 1950s. His father was trained as an orchardist, but took up dairy farming near Waitoa. He started on wages, then worked through 29%, 39% and later 50/50 sharemilking near Matamata. Ben says his father never bought a dairy farm; he reasoned it was more profitable for him to be a sharemilker. “The return on a dairy farm at the time was about 3-4%. When my father retired at 65 he was returning 12-13% on capital invested in his herd.” Today Ben Vanderkolk lives the good life with his wife and young daughter on a 7ha lifestyle block on the outskirts of Palmerston North. Since he bought the property five years ago he’s re-fenced for the drystock he runs and has done much landscaping. It’s a peaceful retreat from the tension and drama of the courtroom.

foundations in retained earnings, good dividend policies and low debt, inspiring confidence in shareholders and averting grievances. Vanderkolk says even if children don’t want to be involved in day-to-day running of a farm, they can add tremendous value

with skills gained in offfarm careers, hence the value in making them directors. He says farmers should not be afraid of building a farming dynasty and generating wealth and using capital to invest off-farm. “I’ve seen farmers who’ve structured their farms in

such ways that they’ve invested off-farm and their children aged in their 20s and 30s have been able to run the off-farm business because they are not interested in farming. That seems to me ideal because that young man or woman on OE might otherwise be lost to New Zealand.”

Ben Vanderkolk

Rural News // september 4, 2012

12 news

PGG Wrightson turns around performance PAM T IPA

STRONG PERFORMANCES in retail, livestock and real estate contributed to rural ser-

year, and the company returned a profit of $24.5 million in the financial year to June 30, 2012. This was a $55.2m turnaround from its 2011 loss

vices company PGG Wrightsonå’s turnaround this year, says chief financial officer Rob Woodgate. Revenue was $1.3 billion, up from $1.2b last

of $30.7m. A substantial turnaround in net operating cash flow to $58.6m (2011: $4.9m) reflected a strong focus on working capi-

tal and particularly debtor management, the company says. Woodgate says the wool business was consolidated, additional agents

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Managing director George Gould says the board is happy with the company’s performance.

joined in livestock and agritech improved with the full impact of previous acquisitions. Interest costs have roughly halved to $13.8 m from $28.1m, reflecting debt reduced from $176m to $124m, Woodgate says. Managing director George Gould says the management and board were pleased with the group performance. “We also remain of the view that the agritech business holds the potential to create growth.”

are disclosed, but the Crafar loan is the largest; settlement is expected in October. Gould says PGG Wrightson expected to collect the residual beyond Crafar before the end of the year. The wool prognosis is good. “We’ve simplified the wool business. We’ve left Wools of New Zealand in the hands of growers and they are promoting that in their own way. And we have narrowed our business to that of a broker focusing on bales

“We also remain of the view that the agritech business holds the potential to create growth.” – George Gould

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He says the most certain and immediate agritech growth lies in the restoring the contribution from Australia. “We have endured quite exceptional climatic conditions over there: [at least] a decade of dry weather, then last year was the wettest on record and the year before wasn’t much drier. If we go back to a vaguely average climatic situation we would expect a quick turnaround in Australia. “The bigger picture is South American and China. We’re well placed in China with a relationship with a major shareholder there, and the steps we’re taking to grow the business in China generally.” He says potential earnings via the Chinese agritech relationship are about potential rather than actual earnings but is a priority. The company reported having exited most loans held under PGW Rural Capital, a special-purpose entity formed to house loans transferred from PGG Wrightson Finance Limited as part of the finance company transaction. With the exception of the Crafar farms assets, residual loans valued at about $4m now remain, some of these loan assets already subject to sale contracts. No loan sizes

and volume and service, with fixed contract on the side – popular in the volatile market we have had.” Live shipments to Vietnam and new business in the lower North Island helped boost PGG Wrightson’s dairy livestock business by 38% in the past year. The company exported 12 shipments of rising two-year Fresian heifers to Vietnam plus two shipments of Taurindicus heifers to the Philippines and Malaysia, Nigel Thorpe, general manager livestock, told Rural News. “We have further scheduled shipments to Vietnam this financial year as well as shipments of Taurindicus to the Philippines. Further opportunities exist in China now being explored.” Thorpe says during the early part of last season PGG Wrightson also acquired the services of 12 additional ex-Allied Farmers dairy agents in Taranaki, Wairarapa and Manawatu. “This has strengthened our overall dairy representation in the lower North Island. Together with an outstanding result from our Waikato dairy livestock team, this helped cement what was a major boost to our overall dairy livestock volumes handled and revenue during the season.”

Rural News // september 4, 2012

news 13 Premium wine sparkles despite market woes su d es h k i ssun

NEW ZEALAND premium wines have withstood difficult global trading conditions to boost exports. For the year ending June 2012, the value of wine exports grew 8% to $1.18 billion and international sales are 79% higher than in 2008. New Zealand Winegrowers chairman Stuart Smith says the vibrant and distinctive qualities of New Zealand wines continue to resonate with consumers in key markets. Total New Zealand wine sales (export and domestic) rose 10% to a record 242 million L for the year ended June 2012, but production from

the 2012 vintage did not exceed 200 million L. Smith says strong sales and a smaller 2012 vintage means a changed supply/ demand dynamic for the sector in the year ahead. The New Zealand wine industry has been a sparkling export success, growing from about $200 million 10 years ago into a top-ten export industry. But two turbulent years (2009 and 2010) have dulled some of the sparkle. Grape oversupply and the largest economic downturn in 20 years have affected the whole industry. But Smith points out supply conditions are now tighter than at any time

Bulk wine impacts returns BULK WINE exports are pushing down industry returns. The average value of all exports last year was $6.58/L, a decline of 7% over the previous year. New Zealand Winegrowers chairman Stuart Smith says the small 2012 vintage will cut bulk wineexport volumes but a problem remains – “the desire of powerful retailers to capture more value in the supply chain.” New Zealand bulk wine exports have grown at an even faster rate in line with global trends. Unpackaged wine accounts for 35% of all New Zealand wine shipped abroad – up from 31% last year.

Achievement or lifestyle PETE R BU RKE

A DRAFT report on how the wool industry might somehow unite itself is due shortly, says the chairman of the ‘Wool Unity Group’, Colin Harvey. He told Rural News KPMG has been commissioned to write the report and has been interviewing key stakeholders in the process of developing a strategy. “You’ll appreciate that it’s a difficult industry,” Harvey says. “The aim is to put together a strategy for a national group and we’ll devise some sort of structure and move on from there.” While many people looking back on the days of the Wool Board claim there was unity, Colin Harvey thinks not. “We had a national body that collected wool levies and did a lot of stuff – some good and some bad. The problem was it wasn’t unity. The sort of new direction New Zealand Merino wanted to go broke that apart. It was unfortunate that it was broken apart rather than fixed. We do need something, but we don’t need something which drags people backwards.” Harvey says it’s very difficult to get unity in the wool industry. “There’s a lot of history there, you’ve got to realize, and a lot of hard feelings about how much money the Wool Board wasted. Given that background it’s quite difficult to get people to see a common direction.” Harvey says he has no vested interests in the industry, which is why he’s taken on the role of heading up the ‘unity group’. Another factor is the ‘individualistic’ nature of people in the farming sector – “an element that seeks lifestyle rather than achievement, and I could tarred with that brush. All of us, who reach a certain point, are more interested in making ourselves comfortable than actually achieving something in this world.”

since 2007 – a major turnaround “providing opportunity for the industry to focus on higher-priced segments in the year ahead.” But significant challenges persist for growers and wineries. “Profitability is a key concern. Lower yields this year have restricted grower incomes, while for wineries the

challenge will be to maintain shelf space and grow key development markets in a time of tight supply. Returns have also been impacted by the high New Zealand dollar and domestic tax increases.” Smith says it’s important for New Zealand to focus on its competitive advantage in premium wine. “That competitive

advantage has survived oversupply intact, and rich opportunities still exist for premium New Zealand wine in established and developing markets. But the industry must guard against strategic threats and operating weaknesses. “The future of New Zealand wine depends on its reputation for premium products. But after several

years of… being pushed and pulled in different directions, it is invaluable to have that [reputation] objectively and rigorously re-affirmed.” Despite accounting for less than 1% of global wine production, New Zealand is now the world’s 10th-largest exporter by value and 11th exporter by volume.

Rural News // september 4, 2012

14 news

Lamb burger supplier is ‘lovin it’ pam ti pa

HAWKE’S BAY farmer Philip Holt says it is too early to tell how supplying stock to Silver Fern Farms for McDonald’s newly launched ‘serious lamb burger’ will affect his bottom line – but it’s sure to be positive. “Any extra market out there is good: a prime example is the AngusPure Burgers that came out a few years ago. Any extra market which gives more publicity to New Zealand farms is always beneficial to the farmer. It’s getting New Zealand product out there and making people aware of what is going on.” McDonald’s told Rural News that while it can’t disclose exact sales figures, the launch has been successful with lamb selling at higher levels than Angus did when it

launched. Also the company maintained sales after one week, which indicates customers enjoy the lamb products and are coming back for repeat purchase, a company spokesman says. Holt only found out recently his farm would be supplying the lamb for the new burger and another product – ‘lamb snack wrap’ – launched in mid August in 160 New Zealand McDonalds restaurants. Another lamb product will soon be added to the menu and Beef + Lamb New Zealand is endorsing the product range. Holt says the first effect on his farm management system will be to get a lot stricter on recording and weighing to find how to get lambs on to trucks as fast as possible. “It won’t happen over-

night; all those things take a while to happen and to get nto the farm system.” With his father, Holt lambs about 4000 ewes on their 1200ha sheep and beef holding, keeping about a third of the female flock for replacements, but everything else goes to Silver Fern Farms. “An objective of Silver Fern farms for the lamb burgers will be to get an even market 365 days of the year; they are aiming for a constant supply of lambs to go into these burgers,” Holt says. “With different farms in different climates that is quite achievable.” Holt says he will aim to provide lambs about nine months of the year. “We will take our first pick in November and we still have a handful from last year. We take a couple of thousand of lambs into

winter anyway to winter through on grass and lucerne. “We’ll do as much as possible but when they start cutting their teeth they are not considered lambs anymore, so that market goes to someone else who lambs later.” He says while he only knew recently about the burger initiative, Silver Fern farms has been doing development work for a couple of years. “The farmers I talk to on a regional basis are pleased about the prospect,” he says. “Everyone is supportive of and proud to be part of the Silver Fern product in supermarkets now; that will follow on to the new lamb burgers. With McDonalds being such a huge international business, there’s a huge opportunity there: anything can happen.”

Hawkes bay farmer Philip Holt, a McDonald’s Lamb Burger supplier, is hoping for a positive impact on his bottom line from the venture.

Bee week garners little buzz FEDERATED FARMERS’ Bee chairman says he was a little disappointed at the lack of interest in the recent national bee week. John Hartnell saw little coverage in mainstream media, a pity because the industry needs to raise the public’s awareness of how critical the honey bee is to everyday life. “As an industry we face a new challenge, or something else comes along to test our ability to maintain our hives every year. It can be an incursion from overseas or a loss of our primary pollen sources which can be so important to honey bees. It’s important we bring the public with us when we look at how we rectify some of these challenges.”

Hartnell says biosecurity remains a huge issue for the industry and says the damage caused by the varroa mite is a good example of what the industry doesn’t want. “Today it’s matter of everybody playing their part on behalf of the bee industry and being acutely aware of what’s happening out there. It could be something happening in a beehive or a pot of honey from another country that’s got into the country, or even used bee-keeping equipment coming in from overseas. “It’s important we lift the game and the awareness so everybody’s doing their part on a day-to-day basis.” – Peter Burke

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news 17

Sheep man milks market p e te r owe n s

Products Ltd (100% Neylonowned) as the manufacturing and distribution arm. Another Neylonowned enterprise supplied dairy sheep milk as required.

ing flocks. Since 2004, when the Brydone farm was converted, the production base has expanded with farms and milking facilities at Winton and

A SOUTH Island company appears to be succeeding where others have stumbled – in sheep milk products. A dairy sheep plant set up years ago at Balclutha had only limited success. The then owners had milked East Friesian sheep for their base product and their supply was adequate, but the cheese they were marketing in Australia was inconsistent in supply and quality. The enterprise was about to collapse when Southland farmer/entrepreneur Keith Neylon bought it in 2004 and shifted it to Invercargill. Neylon knew the So-Fresh ice cream business had closed, but that its export-approved Blue River Dairy boasts a genetically-selected milking flock of 14,000 sheep. plant was there, inoperative but ready to go. He bought Early on Neylon bought and recently at Hedgehope. the plant and set about re-jigging Business connections with the entire sheep milk operation, converted a Brydone dairy farm to including world-wide research into a dairy sheep milking facility. East Asian markets convinced Neylon Friesians were the base breed, but of the market potential in Asia sheep milking and its technology The operation was integrated other breeds including Poll Dorsets and he set about marketing sheep vertically with Blue River Dairy have been introduced to the milk- milk products into China. Now the

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business has a strong Chinese and Thai market. Indonesia is also in his sights. Needing more capital he sold a substantial deer business and thoroughbred horse racing interests, including a training set-up at Burnham, near Christchurch. Neylon also identified the rapidly expanding Indonesian population of over 243 million people as a potential market. In 2011, he sold a 50% share in the Blue River Group to the Tachril Family of Jakarta, which has strong links with New Zealand. Cash from this sale paid for R&D into new milking sheep technologies and built a milking facility at Hedgehope, near Winton. Neylon recently travelled with the Prime Minister to Indonesia as part of 26-person trade delegation and is selling products in Vietnam. Neylon was in 2011 inducted as a Member of the New Zealand Order of Merit for his services to New Zealand agriculture.

TAF scrap benefits competitors NEW ZEALND’S second-largest milk processor says some Fonterra farmers disgruntled about the recent TAF (trading among farmers) vote have approached it to switch their milk supply. Open Country Dairy Ltd chairman Laurie Margrain believes the divisiveness in the dairy industry caused by TAF has seen his company receive an “unprecedented” number of inquiries from farmers wishing to change to them. But Open Country faces a limited capability to take the extra supply, Margrain says. “We don’t have a lot of spare capacity. Already’ve we got as many suppliers as could take in the Waikato this year… [plus] a high level of inquiry which would be for next year. “Our ability to accommodate that would depend on our ability to tweak our capacity. “While TAF has no direct impact on us, it has changed the dynamics of the industry because some people are not as committed to the cooperative concept under TAF as they were beforehand.” Margrain says its payout scheme, whereby farmers don’t have to be ‘shared up’ to produce extra milk, was also a factor. Open Country’s payout forecast for this season is between $5.30/kgMS and $5.50/kgMS, much lower than last season. Margrain forsees considerable downward pressure because of market pricing and the high exchange rate. – Peter Burke

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Rural News // september 4, 2012

18 news China looks beyond NZ to meet dairy demand PAM T I PA

CHINA IS starting to source more dairy products from Europe and the US, says Susan Kilsby, a dairy analyst at Agrifax. With the Chinese dairy industry not yet fully recovered from the melamime scandal, New Zealand has supplied the

lions’ share of dairy products China has imported in recent years, she says in ‘Growing with China’, a monthly report by BNZ’s chief economist Tony Alexander. “But China is now beginning to source more dairy products from other countries,” she says. The type of product mix demanded and

the sources are changing. “New Zealand continues to totally dominate the supply of whole milk powder … but the total volume of whole milk powder demanded by China actually fell by 2% in the year to June 2012. “Instead China is importing much larger quantities of skim milk powder and whey pow-

ders. The whey product is sought for use in infant milk powders. In the 12 months to June 2012 imports of whey based products increased by 38%. This product is mainly supplied by European countries and the US. “ Kilsby says China has long been a producer of milk. “Milk production in

China increased rapidly from 2000 to 2007. But in 2008 milk production stumbled as the melamine scandal was revealed.” Kilsby says China has invested heavily in its milk supply and supply chain. But it is likely to take years for this investment to be fully realised. “We have seen huge investments made in large scale dairy

farms and dairy stock. But it takes years to get such large farms operating at the optimum level as the steep learning curve associated with managing these farms needs to be ascended.” On a positive note she says China is expected to remain the world’s largest importer of dairy products and New Zealand’s largest

market for at least the next few years. New Zealand exporters enjoy the benefit of the Free Trade Agreement and strong relationships with Chinese importers. “But New Zealand exporters can expect to face increased competition, as other countries try to increase their share of this massive market.”

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SKELLERUP IS looking to relocate its earthquake damaged dairy manufacturing plant at Woolston in Christchurch. It recently announced an 11.1% jump in profit for its agri division and a record overall company result for 2012. The agri division’s earnings before interest and tax were $19m. The company overall had a record net profit after tax of $24.7m, up 22.1% on the previous record posted a year ago. The result from the agri division, which makes dairy

Skellerup says the dairy manufacturing plant in Woolston is a key part of the agri division.

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products for the global industry, reflects ongoing demand for its products, the company says. “After a solid start for the year the second six months has seen stronger competition in some segments of the international marketplace as the dairy industry became more cautious with milk prices internationally moving lower. “However, the agri division continues to benefit from a majority of its products being essential consumables for the dairy industry and increasing interest in its product range from developing markets in China and South America.” Skellerup says the dairy manufacturing plant in Woolston is a key part of the agri division. “Due to earthquake related damage and liquefaction risk, we are negotiating to relocate this business to a new site within the Christchurch region. “To facilitate the move, a new rubber mixing plant has been purchased (post 2012 financial year end) and capital has been allocated for the manufacture of additional moulding machines to ensure the operation can relocate without interrupting the supply of finished products. The new rubber mixing plant will facilitate the move and produce a high quality product more efficiently.” Skellerup’s record net profit after tax (NPAT) brings the compound annual growth rate of NPAT over the last three years to about 40%. Chief executive David Mair says “Skellerup has high quality assets across both its divisions that have considerable potential [and] organic growth opportunities… by focusing on customers, our supply chain and our production capability. “Our ability to develop new products has won us new customers across all business units and has been a major factor in helping shelter us from the lingering economic downturn. “We will continue… investing in developing new sales channels and opportunities – in existing markets and emerging new markets such as China and South America.”

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Filters

Service Parts

Description

Part No.

Fits Models

Price

Cab: Air ﬁlter – heavy-duty

AL177185

6010, 6020, 6030, 6030 Premium & 7030 Premium Series

Engine: Fuel Pre-ﬁlter (older 8R Series)

RE525523

8030, 8R IT3 & 9030 Series

Engine: Oil ﬁlter

RE504836

6020, 6030, 6030 Premium, 7030 & 7030 Premium Series

$21.45

Engine: Oil ﬁlter

RE509672

8020, 8030, 8R IT3 & IT4, 9020 & 9230 Series

$39.35

Transmission: Oil ﬁlter

AL156625

6010, 6020, 6030, 6030 Premium & 7030 Premium Series

$70.25

Transmission: Oil ﬁlter

RE174130

8020, 8030, 9020 & 9030 Series

$98.20 $230.95

$161.60

Attachments

Toolbox Description

Description

Part No.

Fits Models

Breakaway coupler, SCV

RE256693

7200-7400, 7600-7800, 7010, 7030, 8020, 8030, 8R-IT3 & IT4, 9020 & 9030 Series

$200.00

Hydraulic quick coupler socket

AL202351

6100-6600, 6010, 6020, 6030 & 7020 Series

$210.10

Hydraulic Pump, 41ccm

AL161043

6010, 6020, 6100 - 6900, 7200 – 7800 & 7010 Series

$3,483.75

Thermostat /173 to 186 degrees

AR48675

Tractors w/4.5L, 6.8L, 8.1L & 9.0L engines

$17.20

Radiator, 50 ﬁns, 6-cyl

AL176362

6020 & 7020 Series

$1,995.15 $1,945.60

Radiator, 50 ﬁns, 4-cyl

AL176361

6020 Series

Poly-V-belt/8pk L=2475mm

L111601

6010, 6020, 6030, 6030 Premium, 7010 & 7030 Premium Series

$132.20

Poly-V-belt/8PK L=2460mm

L111600

6010, 6020, 6030, 6030 Premium, 7010, 7030 Premium Series

$132.20

Idler, automatic tensioner/ service-kit

AL157593

6010, 6020, 6030, 6030 Premium, 7020, 7030 & 7030 Premium Series

$72.20

Idler, roller/service-kit

AL157596

6010, 6020, 6030, 6030 Premium, 7020, 7030 & 7030 Premium Series

$72.20

Belt tensioner

RE518097

Tractors w/4.5L & 6.8L engines

$215.70

Belt tensioner

RE68715

Tractors w/8.1L & 9.0L engines

$393.90

Seal, slipper seals

RE186600

7200-7400, 7010, 7020, 7030, 8020, 8030, 8R IT3 & 8R IT4, 9020 & 9030 Series

Fits Models

Price

Instructional seats

RE192707

Fits most tractors

$1,095.25

Tool boxes

RE275591

Fits most tractors

$108.80

Cab-mounted sunshade – front

RE197943

Fits most tractors

$216.40

Cab-mounted sunshade – rear

RE197944

Fits most tractors

$216.40

$51.25

Tie rod end

AL168711

6010 & 6020 Series

Gasket, exhaust manifold

R521439

6030 & 6030 Premium Series

Water pump, assembly

RE505980

6010, 6030, 7020, 7030 & 7030 Premium Series

$488.30

Water pump kit

RE521502

7020, 8100-8400, 8020 & 9100 – 9400 Series

$904.05

Alternator 14V/120A

AL166646

6020, 6030, 6030 Premium, 7020, 7030 & 7030 Premium Series

$1,096.00

Alternator, 200 AMP 12V

RE210793

8030, 8R IT3, 8R IT4 & 9030 Premium Series

$1,809.35

Cab-mounted sunshade Part No.

Price

$283.25 $3.60

John Deere Reman John Deere remanufactured components provide like new performance at a fraction of the cost. John Deere Reman parts aren’t rebuilt or repaired. They’re remanufactured which means every component is completely disassembled, inspected, machined to factory speciﬁcations and backed by the John Deere warranty.

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Part No.

Fits Models

A/C compressor, Reman

SE502624

6010, 6020, 6030, 6030 Premium, 7020, 7030, 8010 & 9020 Series

Price

Alternator, Reman

SE501827

6020, 6030, 6030 Premium, 7020, 7030 Premium Series

Hydraulic pump, Reman

PG200865

6000, 6010 & 6020 Series

Nozzle, Reman

SE501103

6020 & 7020 Series

Injector, electronic unit, Reman

SE501959

9030 Series

For information on the complete John Deere Reman range of parts and components, contact your local dealer or visit JohnDeere.com/Reman

Water pump, Reman

SE501596

7020, 8020, 8100, 9100 & 9020 Series

$691.25

Water pump, Reman

SE501609

6020, 6030, 6030 Premium, 7010, 7030 & 7030 Premium Series

$381.90

A/C compressor, Reman

SE501457

8030 Series

$823.10

A/C compressor, Reman

SE501456

6030, 7020 & 8030 Series

$825.05

Injection Nozzle, Reman

SE501101

6030 & 7020 Series

$129.40

Alternator, Reman

SE501380

7010, 7600, 7700, 7800, 8010, 9020, 9300 & 9400 Series

$827.40

Injection Nozzle, Reman

SE501957

9100-9400 & 9020 Series

$1,750.00

Turbocharger, Reman

SE501679

9300, 9400, & 9020 Series

$2,854.15

Starter motor, Reman

SE501854

6020 Series

$1,058.45 $812.60 $2,590.75 $129.40 $1,750.00

$801.40

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Rural News // september 4, 2012

20 world K-Line Effluent TM

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MOST UK shoppers (75%) don’t know when the bulk of British fruit and vegetables are in season, a new survey has shown. But a majority would seek home-grown produce if they knew more. This finding has prompted the National Farmers Union to launch a mobile website to allow consumers to find out what to look for on store shelves. One in eight people also mistakenly believe bananas and pineapples are grown commercially in the UK, and four in ten expect to buy British peaches. Only 50% know that peppers, butternut squash and aubergines can be grown in the UK.

NFU chief horticulture adviser Hayley Campbell-Gibbons says it doesn’t expect shoppers to know exactly the British fruit and vegetables seasons. But we can allow them access to ‘seasonality’ data for informed decisions while they shop, she says. “So, as part of the Farming Delivers for Britain campaign, we have launched the What’s in Season mobile website, to access on any smartphone. It’s an easy to use, month-by-month guide to in-season British fruit and vegetables. The British growing season has been massively extended by new varieties, modern growing techniques and poly-tunnels.”

Campbell-Gibbons says if consumers can’t find a product they can now ask their supermarket why. Other findings of the NFU survey include 91% of people not knowing the British tomato season runs from February to October; 70% not knowing the broccoli season is JuneNovember; and 65% not knowing British strawberries are available April-November. But 44% knew to buy British asparagus April-June. People aged 55+ are more likely to know when British fruit and vegetables are available, compared to 17% of 18- to 24-year-olds. Women are more likely than men to know, 28% versus 22%. www.farmingdelivers.co.uk

US govt buys livestock ALAN H A RM AN

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THE US Government is buying US$170 million of pork, lamb, chicken and catfish to relieve pressure on American livestock producers during the drought and bring the meat supply in line with demand. The US Department of Agriculture (USDA) has designated 1628 counties in 33 states as disaster areas – 1496 due to drought – making qualified farm operators in the areas eligible for low-interest emergency loans. Now the USDA will buy US$100 million of pork, US$10 million of catfish, US$50 million of chicken and US$10 million of lamb for federal food nutrition assistance

“The purchases will help mitigate further downward prices, stabilise markets and provide high quality, nutritious food to recipients of USDA’s nutrition programmes.” schemes including food banks. “The purchases will help mitigate further downward prices, stabilise markets and provide high quality, nutritious food to recipients of USDA’s nutrition programmes,” agriculture secretary Tom Vilsack says. The pork, lamb and catfish purchases are based on analyses of current market conditions. A major factor affecting livestock producers is feed value, running high

because of the drought. The USDA had earlier opened the conservation reserve scheme to emergency haying and grazing, cut the interest rate for emergency loans and worked with crop insurance companies to provide more flexibility to farmers. It authorised US$16 million to target states experiencing exceptional and extreme drought, another US$14 million for emergency conservation (CPR) to help farmers and ranchers rehabilitate farm-

land damaged by natural disasters and for carrying out emergency water conservation. It also authorised haying and grazing of wetlands reserves in droughtaffected areas and reduced the 25% penalty cut to 10% on the annual payment to producers on CRP areas used for emergency haying or grazing. The USDA is also temporarily easing the pasture requirement for organic livestock producers. National standards now require at least 30% of an organic animal’s dry matter intake to be from certified organic pasture. This is being cut to 15% for the rest of this year in counties declared natural disaster areas, but the rest of their diet must also be certified organic, including hay and grain.

Rural News // september 4, 2012

world 21

Better telecom services sought for the bush services in regional AusAUSTRALIAN FARMERS tralia. want the Government to Laurie says while their improve telecom services response is a step towards in the rural sector. better telecoms, it leaves While welcomcritical areas unaddressed. ing the Federal Government’s push for a national NFF the Government’s recent commitment to broadband network, the work with the agricultural National Farmers Federation says broadband is just sector to develop digital one element in a range of services that must be improved. NFF president Jock Laurie says ensuring adequate mobile phone coverage is one such critical issue. “Mobile black spots are frustrating for farmers and all in regional communities, in respect of utilising the phone and accessing the data network. “Farming is a tech- Federal Communications Minister nologically savvy Stephen Conroy says the government wants to improve teleindustry, yet there’s com services to the rural sector. no point in farmers having all these applistrategies for more telecations for farm management – weed control apps, coms innovation, likely to chemical label readers and raise productivity benefits. However, these gains GPS devices – if we can’t will not be fully realised get reliable access to the until rural services are telecommunications netimproved, Laurie says. work.” “We are also pleased The Federal Governto see that the Government last month released its response to the 2011-12 ment’s response provides some common sense regional telecommunicain using the infrastructions review. ture provided by the NBN The review, released fixed-wireless rollout to in May, showed up a huge improve mobile coverage need for better telecom

by co-location of services.” But these do not entirely fix the telecoms problem. “We are disappointed, for instance, that the Government did not commit to continuing the

satellite phone subsidy scheme – as unless the necessary mobile infrastructure is improved, more people in regional areas will rely on satellite phones.

“Farming families, rural businesses and country communities must have equal access, reliability, quality and affordability in telecoms services as those in urban areas.”

NFF president Jock Laurie says ensuring adequate mobile service in rural areas is critical.

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Rural News // september 4, 2012

22 agribusiness

ENSURE YOUR SUMMER FEED.

Alliance’s Amazonian lamb exports pam tipa

WITH ALLIANCE Group’s first branded premium lamb shipment arriving in Brazil on September 15, marketing manager Murray Brown says it is just the start of ongoing trade. Brown told Rural News it is a prime example of new markets for lamb being successfully explored, as the economies for traditional markets come under economic stress. The Southland lamb shipment is worth NZ$250,000, but Brown says that’s just the start. “It’s going to be an ongoing deal; it’s high value and top end,” he says. “Some of these Brazilians have been looking for a high quality product for some time. A lot of the product they are getting is illegal imports from Uruguay and they don’t have enough of their own product.” He says they have plenty of beef but not lamb. “They see lamb as very much a special, top end-occasion meal and there is potential they can double their current consumption of lamb. “They see New Zealand as a good fit because of its quality and all the other attributes of our lovely country.” The Pure South lamb will arrive at the Port of Santos to go into 120 stores, restaurants

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and hotels in Sao Paulo. Alliance Group is one of the first New Zealand companies approved to export to Brazil. Brown says Alliance has been working on the market for a couple of years. “Then there have been government free-trade agreements to open up the market and there have been things you have to do to get approval outside of a free trade agreement to get into there. We have been working away quietly with a consultant.” Alliance’s in-market partner is Wessel, the owner of which, Istvan Wessel, is the author of nine books on food; he attracts millions of listeners to his daily radio show. About two thirds of Wessel products go to the food service sector

and the remainder to retail. The lamb, sourced from Southland farms and processed at the company’s Lorneville plant near Invercargill, includes boneless loins, French racks, bone-in leg, tenderloins and semi-boned shoulder. Alliance Group chief executive Grant Cuff says with a growing population and Alliance chief executive Grant Cuff says with a growing population and emerging emerging middle class, Brazil middle class, Brazil shows great shows great potential for New potential as a market for NZ lamb Zealand lamb. “Brazil has the ability to “Sao Paulo is also the southern provide Alliance Group with significant returns, given its natural hemisphere’s largest metropolis with more than 11 million people, affinity for red meat,” Cuff says. Recent reports suggest Bra- so this deal represents great news zil’s middle class comprises at for Alliance Group, its shareholdleast half the country’s popula- ers and the wider New Zealand economy.” tion, he says.

Emerging markets ALLIANCE’S BRAZIL deal is an example of a New Zealand company seeking out new opportunities as the economies in traditional markets come under duress, says marketing manager Murray Brown. The traditional lamb markets of Europe, UK and North America all have struggling economies. They have never been ignored – in the past taking a lot of volume from New Zealand – and they pay well. “But progressively over

the last 18 months their economies have really struggled in consumption of high-end product, which lamb is. New Zealand has had to look at other good market opportunities.” China and the South East Asian markets have developed and Brazil is an opportunity. “There has been more focus on diversified markets outside the traditional markets and there has been the odd free trade agreement negotiated by the Government; Russia has

just opened up a little bit more as well.” Brown also says meat companies are making more effort to tell farmers about opportunities out there. “Yes the exchange rate is not going right for us but we as an industry or as individual companies are exploring opportunities and we’re making inroads. They may be small steps initially but we think some of the markets we have got into provide potential.”

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market for dairy products of the type Scotland can produce. The aim would be to create a strong Scottish-branded milk and dairy product line to make inroads into the European and global dairy market. “Branding, market research and investment are required but opportunities for Scottish dairy

produce exist in niche, valueadded and premium markets,” the report says, citing the export success of the Irish Dairy Board co-op that exports to 80 countries. The model merits further examination, the report says. Investing in the development of value-added products and markets will play an important part

in revenue generation; building value into the Scottish dairy supply chain, increasing milk producers’ confidence in the industry and reducing milk processors’ current reliance on domestic giant retailers. NFU Scotland vice-president Allan Bowie says a huge potential exists in world markets for dairy.

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reasons why farmers are better off with Ballance. Another great yea year ar ffor or B Ballance allance has returned $ $47 million to our shareholders for the 2011/2012 year through a combined rebate and dividend of $44.29. And best of all, if you are fully paid up, that’s cash in hand when you need it most.

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Ballance 2011/2012 performance at a glance:

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• Group sales volumes at 1.44 million tonnes

TEN YEARS OF OUTSTANDING RETURNS

• Trading result of $77.3 million • Total revenue of $915 million

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• Equity ratio of 64.2% • Investment of $62 million of capital into the business

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Rural News // september 4, 2012

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



 

Lamb Market Trends





 



  

































































































































































































 



  

 

 

 





























































































































































 

 











 

Last Year

This Year







 

 

 























  

















   



 

 













 



 

 























 

 























 





 



 

























  

 







 







 













 











 







 







 











 







 





  

 





 

Beef Market Trends



 

 

 









































 

 

 



























  









      







90%

 80%

 

  

  















60%

  





  



70%



      







 







  

  













 

 

 



























 

 









TRACTA39810-RN

 

‘THE RESULTS WERE IMMEDIATE AFTER THE FIRST APPLICATION.’

David Lochore – Sheep and Beef Farmer, Porangahau, Central Hawke’s Bay

Rural News // september 4, 2012 

Beef  Cattle numbers not there Meat processors are finding it hard to procure at the moment. The numbers are just not out there, plus the strong store cattle market has been keeping killable cattle out of reach. There are also farmers who are sitting on cattle, waiting for schedules to gather some momentum. Export prices are struggling to compete with local trade prices, which continue to edge higher. Local trade prices in the North Island were $4.40/kg on average last week while prime steer was behind on $4.27/kg. 300kg cwt bull was $4.30/kg although there are very limited numbers coming forward. In the South Island, 300kg cwt steers were still averaging $4.20/kg with similar weighted bulls going for $4.00/kg. There is talk that some processors may be prepared to push the boat out a bit more in the coming weeks in order to source supplies. US imported beef in demand The combination of lean 95CL beef and fat 50CL beef is currently in strong demand to make burger patties in the US. US imported 95CL beef continues to edge higher, following a similar trend to last year but at a premium, suggesting imported beef prices are on track to break new records. The recent rise in US domestic prices is also helping the imported market. Despite the likelihood of an increase in US cow kill later on, US imported beef prices will likely soldier on. The same time last year there was a flush of US cows coming to market but this did little to throw US imported beef prices off track.

Lamb



 

















































































  





 

 





  





 

 

   









 



 

















 









 





 

 











 





  



























































Dairy

 









  





 









 













Euro 









US Dollar  

 









Jun

Jul

Aug

Sep

Oct

Nov



UK Pound

   









 













 







 













US drought underpinning dairy prices The drought in the US will not only have a positive impact on beef prices, but on international dairy prices. The US cow herd is expected to be lower next year along with milk production as the milk yield per cow deteriorates, according to the USDA. US dairy cow herd liquidation gathered momentum when the drought first hit as feed prices soared, but a recovery in dairy prices has since slowed this. Dairy prices in the US are expected to be higher across the board for the rest of 2012 and into 2013 than previously forecast, but will still be lower than in 2011.



  



Contract lambs taking up kill      Export lamb prices in the North Island were $5.46/kg      (net) on average last week and there continues to be a weak undertone. With the kill being at seasonal lows, there are fewer lambs to choose from to meet chilled   obligations so criteria has been strict. Contract lambs are  taking up a fair chunk of the slaughter and there are  indications that farmers who have signed up are  struggling to meet the specifications. Many have overshot   weights and are having to buy in lighter lambs from the     store market to fulfil their commitments. In the South  Island, meat processors continue to nibble into export       lamb prices with a 16kg cwt lamb (net) averaging $5.52/kg last week. Processors are simply not prepared   to chase any lambs that aren’t on contract as their  freezers are full and overseas demand is lacking.  Heavy lamb markets in disarray  Meat processors have warned throughout the year that   heavy lambs will be discounted this season. Farmgate   lamb prices got out of hand in Nov last year, and        processors were slow to adjust schedules in a sliding market. This left plenty of expensive product in storage as processors tried to ride out the downturn in prices. However frozen heavy  cuts continue to be particularly hard to shift. The uptake has been slow     due these heavy markets being in disarray and the oversupply. To add to    the pile, Australia and NZ have had an excellent growing season and with     prices edging lower, farmers have tried to make margins out of weight     gain. The lower kill is helping clear stock but there is plenty left to be sold.    

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Rural News // september 4, 2012

26 opinion editorial

edna

Innovative thinking, action required ENCOURAGING DIRECTIONS are obvious in New Zealand’s agri sector: serious, innovative thinking embodied in future-focused reports and meetings on how New Zealand might significantly increase the value of its primary exports. For example, the Riddet Institute a few weeks ago issued a ‘call to arms’ to the agri food sector to lift its game and boost food exports to $60 billion by 2025 – up from the 2011 figure of about $23b. That coincided with our top agri chief executives attending a high-powered boot camp at Stanford University, US, trying to discern ways to individually and collectively ‘up the ante’ in the world global marketplace. NZ Trade & Enterprise proposes New Zealand markets its expertise and invests in sheep and dairy farms in China and South America. And the Red Meat Sector Strategy appears to be hitting second gear – or is it third? A common theme in these reports and discussions is that old habits and business practices must die – and quickly, and that the search is on for creative business models to transform the agri sector. Collaboration is a concept gaining traction, though as one consultant noted: ‘It’s easier to compete than collaborate’. We are seeing more collaboration by our research institutions and, let’s face it, without their behind-the-scenes contributions little could happen. Science underpins our food sector. Another heartening sign is the leadership being shown by companies. They led the boot camp initiative, by all accounts doing it very well. Industry-good organisations and government agencies have an important role, but the companies are the doers – the ultimate risk takers whose dollars are on the line. What will it take for this latest outburst of creative thinking to materialise into action that realises the ambitious targets set by the Riddet Institute and others? – Peter Burke

“A Bill!? – for being happily hitched!? – what will they make us pay for next??”

the hound

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

Winners and losers!

When green means red

Fed(s) up

THE HOUND notes that both sides of the dairy debate – Fonterra and Fish & Game NZ – have signed up All Black captains to promote their cause. In Fonterra’s case, it teamed up earlier in the year with current captain Richie McCaw. Meanwhile, Fish & Game – which constantly bags dairy farming and coined the phrase ‘dirty dairying’ – recently took on former All Black captain and UK-based academic Anton Oliver as the spokesman for its latest clean rivers campaign. But your old mate reckons this is a real case of winners are grinners. Fonterra has picked the hero who led

DAIRY FARMERS, or those with an interest in New Zealand’s rural sector and wider economic wellbeing, should be rightly concerned about how the Greens are putting global party solidarity ahead of this country’s interests> note this recent report in the NZ Herald: “The Green Parties of New Zealand, Australia and Canada are joining forces to campaign against the Trans-Pacific Partnership. They issued a joint statement yesterday after Metiria Turei, co-leader of the NZ Greens, held a press conference in Canada with her counterpart. Among the Greens’ concerns is the prospect of the heavily protected Canadian dairy

IT APPEARS your old mate’s comments about Transpower’s sponsorship of Feds’ nipped a rather raw nerve with the lobby group’s top brass (see letters, p29). Perhaps it’s because Feds’ members have hosted national grid infrastructure, rent free, for decades and in recent years, as some have sought to rectify that situation, they’ve wondered why their representative body has been so reluctant to engage on the issue at a national level. Your old mate, of all people, knows how hard it is to bite a hand that feeds but suggests there is more to the sponsorship than meets the eye.

Save

the ABs to Word Cup glory over France in 2011 and is one of the most admired people in New Zealand. In contrast, Fish & Game’s man is famous for being unable to throw the ball straight into the lineout, pontificating from his Oxford University ivory tower about how New Zealand should be run, and was a key member of the team that embarrassingly capitulated to France in the semi-final of the World Cup in 1999. Chalk the victory in this debate to Fonterra!

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industry being de-regulated, removing safeguards which they say aim to preserve farmers’ livelihoods.” So much for the Green Party’s muchvaunted claim of “creating a smart economy that will deliver real prosperity” when it’s against New Zealand dairy farmers being able to have fair access into Canada and is more concerned about protecting inefficient, subsidised Canadian farmers and not helping New Zealand farmers export more milk. As a mate of yours truly opined: It just goes to prove why the Greens are called the watermelons – green on the outside, but red in the middle.

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Rural News // september 4, 2012

opinion 27

Feds straight down the line on Transpower UNLESS YOU had been overseas, living under a rock or cut off from civilisation, it must have been pretty hard not to have heard of the stunning success over Transpower that was the Western Bay of Plenty district decision. Yes, Transpower is a sponsor of Federated Farmers. When push comes to shove we never allow this relationship to influence what we say or do. We are effective as a membership based organ-

isation because everything we do as elected officials or by our staff, is done in our members interests. It is not too dissimilar I guess to why companies advertise in Rural News; it is about communication and dialogue, nothing more. Readers may recall how robust Federated Farmers was on the Rural Broadband Initiative despite Telecom being a sponsor. We also put acid on the banks when interest rates seemed a little too high – again despite Westpac being another spon-

sor of Federated Farmers. The way we split commercial and policy is not too dissimilar from the relationship in Rural News between editorial and advertising. This is highlighted best of all by that stunning Western Bay of Plenty district decision that brought national attention to Federated Farmers v Transpower. At stake was a blank cheque Transpower believed the national policy statement gave it, to appropriate the property rights of farmers. Meeting recently with Transpower wants a planning veto within a 64m buffer zone – 32m either side – of its transmission lines, which farmers and the federation are fighting.

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

the Forestry Owners Association, they made it very clear Federated Farmers was leading the charge on this. What Transpower wants is a planning veto within a 64m buffer zone – 32m either side of its transmission lines. If you wish to know what that looks like, take an 11-storey building and lay it on its side. Alternatively imagine Eden Park’s rugby playing surface with lines down the middle. This is not small-beer stuff and Western Bay of Plenty district was first batter up in a national issue. Here, Transpower and its posse of high powered corporate lawyers and safety experts came headto-head against passionate, rational and intelligent farmers. Transpower had a cunning plan – a plan so cunning you could pin it on the district plan and avoid individual easement agreements and compensation. Federated Farmers is clear on this: buffer zones are unnecessary for safety because it is already covered in the Code of Practice for Electrical Safety Distances (NZECP43:2001, (COP)). In other words Transpower has sufficient existing legal rights to carry out any maintenance on lines. Even before we were heard, Transpower’s argument started shifting. Yet what we successfully argued and the commissioner agreed with us on, is that the proposed rules within the buffer zones should be deleted and replaced with a reference to the Electrical Code of Practice. Inci-

TECHNICAL EDITOR: Andrew Swallow ................... Ph 03 688 2080 PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 Becky Williams ........................Ph 09 913 9634 REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................ Ph 09 913 9630 Peter Burke .............................Ph 06 362 6319 Vivienne Haldane .................... Ph 06 858 5161 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628 WEBSITE PRODUCER: James Anderson .................... Ph 09 913 9621

dentally, the code already includes safe distances for buildings, earthworks or machinery working near lines. We also argued that landowners should be able to negotiate directly with Transpower rather than see their councils become agents of the SOE. Council rates are a major issue everywhere; this means it is wrong for Transpower to believe ratepayers should bear the cost and time of enforcing its rules. An appeal has now been lodged against the decision by Transpower, which

Federated Farmers electricity spokesman Willy Leferink.

now obliges Western Bay of Plenty to call in its lawyers against Transpower’s lawyers. It prompts the questions, why we are here in the first place and why does Transpower want to enrich lawyers instead of acting with commercially pragmatism? This, after all, is public money

fighting public money. If Transpower heeded our advice about compensation, many of these problems would go away. If it doesn’t it will learn farmers have only just begun to fight. • Willy Leferink is Federated Farmers spokesman on electricity.

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

Rural News // september 4, 2012

28 opinion

The market at work? Supply vs demand THE PRICE hikes at the petrol pumps make the point: when the basic necessities of life are in short supply – or might be – prices go up. Market forces are at work, and these days they operate globally. The increase last month in the Global Dairy Trade (GDT) auction was the third-biggest gain in approximately two years. It is another example of global demand for a basic necessity and an important indicator for the future. Harvest failure in the US means cheap grain is not available for supporting increased production in the dairy herd. Wheat, corn and soy have been severely affected and corn stocks are at a six-year low. Global charity Oxfam believes the drought in the US will precipitate another food price hike. In 2008 and 2011 the reaction to huge price swings in staple crops were riots in at least 24 countries. Fears about food security (available, affordable food of good quality) are increasing globally.

Market forces are also operating for those who know about producing food. UK graduates in agriculture and horticulture rank fifth in employability, and biosciences sixth (medicine and veterinary science top the list). In America a McKinsey report indicates salaries in the primary resource sector have increased almost 30% more than the average since 1996. A recent NZ Listener article on graduate unemployment reported undergraduates from 2009 were earning an average of $29,900 in 2010. But that year the applied-science graduates working in the banking and fertiliser industries had salary packages of approximately $55,000. This year the starting salaries in graduate programmes in the industry are about $55,000, with a car in 6-10 months. The fertiliser industry is talking packages of at least $70,000. This is market forces at work for people, just as the forces work for goods in short supply. Given the overall projection of increased population,

The development of new dairy processors in New Zealand, like the Synlait Factory in Canterbury, is a positive sign of a growing international demand for safe, reliable food produced in this country.

increased demand for animal protein and increased focus on healthy ageing, plus on-going concerns about food security, food will be increasingly valued during the next few decades. It is therefore logical to expect that people who know about food production will continue to be in demand, and that commodities will again be driving the economy. Already the fastest-growing midmarket businesses (annual revenues $2 million to $50 million) are in agriculture, forestry and fishing. GE Capital managing director Aaron Baxter has suggested that if New Zealand is to

evolve as an economy, resources and expertise must be put into assisting the mid-market to overcome its barriers to growth – both in helping understand the sector better and in providing greater access to capital. This means graduates with knowledge and understanding of agriculture and business will be increasingly in demand. These are the people who will be producing real goods (commodities) and linking them with the markets. For New Zealand the late Sir Paul Callaghan calculated revenue per employee to be $350,000 at Fonterra; in food manufacturing it is $120,000.

Fisher and Paykel Healthcare achieves $290,000 and the wine and tourism industries bring in less than $100,000 per employee. Sir Paul’s calculations were done before the latest concerns on shortage of commodities, and make the point about the importance of food, food producers and value chain integration. This message needs broadcasting in all schools as the young make up their minds about what to do next. Globally the value is in understanding how to produce and manage food. • Jacqueline Rowarth is professor of agribusiness, The University of Waikato

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Rural News // september 4, 2012

opinion 29 Get in behind, you mongrel Hound I NORMALLY refrain from reacting to The Hound but its comments in Rural News (21 August) about Federated Farmers and Transpower are egregious. It does the credibility of Rural News no good when Federated Farmers victory over Transpower in Western Bay of Plenty District has been well covered in local, regional, national and other rural media. Yes Transpower is a sponsor of Federated Farmers. We do not hide that fact since it is on our website

and in the conference programmes Rural News staff would pick up at our national events. We make it clear to any sponsor or potential sponsor that their partnership with Federated Farmers does not buy our silence or acquiescence. On the Rural Broadband Initiative we robustly stood up for farmers despite Telecom being a sponsor, and our campaign several years ago to lower farm mortgage interest rates was done in spite of Westpac being a sponsor. This is why I reject the notion

Hound’s criticism not fair THE HOUND needs to straighten up his facts before naively describing Federated Farmers’ response to Transpower’s attempted land grab beneath their transmission lines as “muted and weak” (August 21). For months this issue has been the subject of sustained media interest fronted by affected landowners, who also happen to be members of the federation. They have not only successfully fought a prolonged publicity campaign; they have brought every district plan in the country to a standstill as councils await the outcome of the submissions to the commissioner considering the inclusion of these zones in the Western Bay of Plenty District Council’s district plan. The commissioner agreed with these submitters. Where did the expertise for their submissions come from? From Federated Farmers’ policy advisors who have been working alongside the landowners every step of the way. It is unfortunate Transpower is choosing to appeal the commissioner’s recommendations – using public money needless to say. How appropriate that the pragmatic members of Federated Farmers’ cash-strapped organisation will now use Transpower’s sponsorship money to fight on in the Environment Court. Wendy Clark President Auckland Federated Farmers

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all fedfarmers: Let’s be clear Transpower’s sponsorship of the federation’s website in no way compromises our stance on buffer zones. We just give them jolly good tellingoffs behind closed doors in a soundproof room. #toothlesstiger transpowerakl: Dear @fedfarmers please find attached your monthly fee of 30 pieces of silver for continued sponsorship of your website. We look forward to our next meeting. #easilyboughtoff damienoconnormp: I fear @fonterra’s decision to push ahead with TAF is all to blame for the 30 cent drop in forecast payout – as well as the devastating drought in the US, civil war in Syria and Black Caps inability to bat properly. #tenuouslink henryfonterra: How come the GDT auction goes up two months in a row and we then cut the forecast payout for next season. Can anyone explain that to me? I’m looking forward to my retirement. #dazedandconfused fonterrapr: It’s called keeping them guessing @henryfonterra and it gives us opportunity to up the payout at the end of the season and make us all look better. #earlyseasonpainforlongtermgain

that we will take 30 pieces of silver, because we would have no members if our position was up to the highest bidder. Yet if we apply The Hound’s logic, does it now mean Rural News will reject all paid advertising because this will influence editorial content? Somehow, I think your editorial staff would find that suggestion an affront to their integrity as journalists, just as our elected officials and staff find The Hound’s comments complete effrontery now. In ‘having a crack at Feds’, The Hound lessens only his credibility

because among farmers and the wider industry Federated Farmers is seen as the lead body in dealing with Transpower’s buffer zones and in seeking compensation for transmission infrastructure. Remind me again, what did happen in Western Bay of Plenty District? Bruce Wills National President, Federated Farmers of New Zealand Bruce Wills

Rural News // september 4, 2012

management 31

Cloud system has farm clout pe ter bu rke

THE DATA might be stored up in the clouds, but the information is downto-earth, immediately available, and an instant hit with farmers it seems. We’re talking about AgRecord, a web-based tool designed to improve communications on farm, and with key business advisors, which dispenses with the need for endless notes on boards and in books. It was developed by Ginny Neal, whose husband manages Castlepoint Station, south Wairarapa. She’s a former school principal, teacher and very IT savvy. She’d developed a similar system while teaching, but it was the pile of paper and notes with tallies, weights and all sorts of other written records on-farm that prompted her to go a stage further and develop what is effectively an agricultural intranet or information hub. The pilot was tested at Castlepoint and a year later she launched it commercially, including a display at the

recent science day at Massey University (Rural News, July 17 & Aug 1). The system is customised to the needs of individual farms, with the software and data held remotely on ‘Cloud’, as was her system for the school. “It’s a central storage place for all the information that your staff, or whoever you give access to, may need. It’s built from scratch so it only contains information you want it to contain. It looks and works like you want it to work.” Neal says it can contain things such as leave forms; machinery parts; animal health information; flyers on field days; stock rotations. “It can show what fences need repairing and any other maintenance work that may need doing around the place and any bulldozing jobs; we can upload videos to it, particularly ones on best practice.” There can be a ‘live calendar’ element if desired, so staff can do things such as book annual leave.

No bells or whistles: former teacher Ginny Neal’s system is built with rural broadband in mind.

“You can look at when the WOF for the car is due, and when the certificate of fitness is due for your truck. You can see when a discussion group is coming up and when someone is coming to visit the farm.” Access to the system is determined by the farm owner. Neal says most confine it just to staff but some include key advisors such as accountants, bankers, farm consultants and shareholders. A person has to be ‘invited’ to join with a link that allows them to set up a password and gain access. Neal says updating data on the system is easy. “It’s as simple as hitting a button, entering the information and hitting save. We are calling that feature ‘shepherd proof’ – in other words, it can’t go wrong, but if it does, the system has sitting behind it the last thirty days of changes so you can reinstate that page.” While the package is web-based, to page 33

Owner’s perspective Castlepoint Station owner, Anders Crofoot, says AgRecord has made a huge difference on the station. It’s a long narrow property and if a daily staff meeting were held it could take up to two hours. The system’s saved valuable time and vastly improved communications. “It’s been quite interesting,” Crofoot told Rural News. “Several years ago if we’d tried to do it I would have had to supply a

computer and everything else. But nowadays when a shepherd comes to us we are probably struggling about whether he’s actually got a knife or not. He certainly doesn’t have a notebook to keep with him but he’s got a really flashy laptop. So I can just supply the internet access and they’ve got the computer and they’re away.” With ‘to do’ lists on the system staff can check their work programme for the next day. Jobs

can be added without having to gather staff together for a briefing. “It’s been really good. For example, our general hand has just taken off with it and has listed the tyre sizes for all the different cars and he’s putting all the different types of oils in. In the past these were things that only maybe myself or someone else had access to but now we are able to put it out in a public space where anyone can look at it.”

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Rural News // september 4, 2012

management 33

Eco-efficiency good news story How environmentally efficient are our sheep and beef farms? In the second of Rural News’ articles leading up to November’s Grassland Association annual conference in Gore, Andrew Swallow previews a paper addressing that question. DESPITE HUGE production increases over the past 20 years New Zealand’s sheep and beef farms haven’t, by and large, increased their environmental footprint, a study by AgResearch scientists and a PGW consultant reveals. Their findings, due to be published in a paper at this year’s New Zealand Grassland Association conference in Gore (see panel), are based on some serious retrospective number crunching using the Overseer nutrient budget model. “The paper highlights a fantastic good-news story the sheep and beef industry should be celebrating,” lead author, Alec Mackay, told Rural News. It’s timely too, given the concerns about the footprint of livestock systems and the current debate on farming within limits, he notes. “While we’re all aware the sheep and beef industry has made enormous productivity gains over the last 20 or more years, and enormous production gains despite occupying less total land area and less high quality land, what people are not aware of is that the environmental footprint of the sector has changed

little over that period.” Mackay says this is not by design, but rather a fortuitous result of the drive for productivity, spurred by the removal of subsidies in the 1980s. “The industries’ focus on reproductive performance and higher growth rates in lambs and cattle has seen more and more of the pasture grown eaten and converted into a saleable product that is not wintered.” But perhaps the best news is the sector still has substantial room to improve. “There are still major eco-efficiency gains to be made by the sector, with little or no further increase in the environmental footprint. Look at current lambing percentages and think what the potential is there.” Similarly the age at which cattle are finished is slowly decreasing, reducing the proportion of feed used for maintenance compared to growth. “The difference in efficiency between cattle which only have to be carried through one winter, and those that go through two, is enormous.” Using Overseer and MAF’s sheep and beef farm monitoring models, Mackay et al calculate that

Sheep and beef farmers have a largely untold good news story, says AgResearch’s Alec Mackay.

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to page 35

System has clout from page 31

very little bandwidth is needed to run it, mainly because it is not a ‘bells and whistles’ system, she adds. “With just one bar on the cellphone I can still run it through a cellphone and a computer.” So far most farm workers using it are keeping their notebooks which they update during the day, but at night they download the information on to the AgRecord system. Since the official launch about four months ago Neal says she’s been blown away by the interest. She’s employing four staff and has already built several systems. “I’m building one for a farmer in the UK. He’s a dairy farmer moving to Tasmania to manage a dairy herd there so we are building that all via Skype!” Meanwhile the business here has taken her to many parts of New Zealand and even to Australia.

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Rural News // september 4, 2012

management 35

Use N to meet greater feed need WITH MORE lambs expected this spring fertiliser nitrogen will be the best option to raise feed supply to match demand, says Ballance Agrinutrients. High scanning results mean having the best feed available will be a priority to achieve optimum liveweight gains, especially in light of subdued market prices, suggests the cooperative’s research and development man-

ager, Warwick Catto. “Feed quality has a major influence on the level of production achieved by ewes and lambs… After lambing, the feed needs for the flock increase by about half in just the first week and that’s with an average number of lambs. If lambing rates are higher, more feed will be needed.” Catto says nitrogen applied

Productivity gains despite pressures from page 33

nitrate losses were within a narrow range of 7-9kg N/ ha in 1989-90, 1999-2000 and 2009-10 for both Central North Island hard hill country, and Manawatu easy hill finishing land. “Surprisingly there was little difference in N leaching losses between the extensive and more intensive sheep and beef systems,” note the authors, a point they attribute to the intensive system being on drier country. They also note their nitrate loss calculations fall “at the lower end of the range for sheep and beef systems” as outlined by Lincoln University professors Di and Cameron, the scientists behind nitrification inhibitor eco-n (see table). It’s a similar story with greenhouse gas (GHG) emissions, with

little change over time or between systems. Mackay suggests a similar study of the dairy sector might tell a different story. “They’re making production gains, but not necessarily the same level of productivity gains, whereas in the sheep and beef sector, people are generally making productivity gains with very little increase in inputs. “In absolute terms emissions may not be decreasing from the sheep and beef sector, but they’re not increasing either. It’s a great story for the sector that’s not really been put on the table. The other point to make with sheep and beef is this has been achieved despite pressure from other land use slowly chasing the industry into more challenging environments.”

Conference in gore

The New Zealand Grassland Association’s annual conference this year is in Gore, November 6-8, with the theme ‘Opportunities in land use change’. Sessions of papers on winter management, forage crops, soils, nutrient management, and other ‘hot topics’ are planned. See www.grassland. org.nz for more.

before lambing will provide the best response, providing ground temperatures are high enough. “It doesn’t really matter what form of nitrogen is used, it just needs to be applied early enough to give that boost the pasture needs prior to lambing. A lighter application over a large area is best.” Spelling post application, pregrazing, for a couple of weeks will

give the best response to the nutrient, he adds. “A nitrogen boost at the right time will mean pasture will grow about 30% faster. This extra growth could be the difference between pasture covers dropping to levels where stock is not fully fed and maintaining pasture covers that allow for good production levels.” Nationally lamb numbers are

forecast 4% up on last year which means an extra 1 million mouths to feed this spring. With schedule prices averaging less than $100/lamb, capitalising on extra numbers by ensuring strong pasture growth is “all important and… the best way to strengthen the balance sheet this season,” says Catto. Warwick Catto

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Nitrate loss ranges Land use

loss in kgN/ha/year

Forestry

1-5

Sheep & beef

6-60

Dairy

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Arable

10-140

Vegetables

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Rural News // september 4, 2012

36 management Hot product: heirloom varieties of tomato.

Niche markets A breakout session at Hort NZ’s recent conference in Auckland held some inspirational marketing ideas from Iowa, which could just work in some situations here. Pam Tipa reports

Smith has taken a year GIVE YOUR niche prodoff tomato growing to take uct a story and think of new ways to sell it because up a Rotary scholarship to complete a post-grad rural food is a “hot product” studies diploma at Massey right now, Iowa heirloom University in Palmerston tomato grower Jennie North. Smith says. Initially a successful The dynamic daughter of traditional corn and insurance agent, Smith moved back home when soyabean croppers draws her father on insurance “As growers, was diagmarketing nosed with experience people don’t brain cancer. to sell heirShe grew loom toma- see us as we toes she are in the field. heirloom tomatoes for grows on her But at the interest, then grandparents’ farm market people began selling to restauback in Iowa. see me, they rants under She is know my story her excludriven by the hungry and I get to tell sive name Butcher Crick demands of a student loan, them about my Farmers. She soon the terms product.” started using of which her network base of 3000 should have New Zealand contacts to grow her busigraduates counting their ness. lucky stars. She pays $783 Aside from working a month on her $60,000 in insurance and moonstudent loan with an 8.4% lighting in restaurants, interest rate.

Time out to reassess Smith is in New Zealand because the business expanded so fast she needed time out to reassess “New Zealand’s been a magical place to do it in.” This country has a great growing climate, she says, but is “still focusing on intensively cropping stuff that everyone else is doing. “You can tell from my personality I like to be unique and I would be going in the absolute opposite direction – I would be growing something that no one else is doing. “A hot house tomato system? That’s a lot of money to invest – and look at Australia’s operations. At the end of the day, how crappy a hot house tomato tastes. “I look at these speciality product groups and I think that is the way you need to be going.” Smith is studying food systems which connect producer and consumer in short value chains as part of her graduate diploma at Massey. “I have already studied the export markets and now I want to look at the short-term markets. I am trying to differentiate the economical and nutritional benefits about using that short-term cycle. “I am certainly not trying to suggest we move back to the good old days. I am suggesting we move up to the future using technology as a support system [to put] more economically in the producer’s pocket.” Smith said she could pick any country in the world to go to for her Rotary exchange but picked New Zealand because it was the “best in horticulture and everything else” agriculturally. As it’s turned out, she picked a good year to put tomatoes on hold. There was no rain on her parents’ farm from late May to early August, and temperatures topped 40 deg C.

Rural News // september 4, 2012

management 37

ripe for picking Smith was on a number of boards in the state, including those trying to address the dearth of management experience left by retiring baby boomers. Building up to 2500 plants she considered aiming for certified organics, but was limited by aspects of her grandparents’ conventional farm. Despite that, Smith says people always assume small growers take more care, which is to her advantage. “Large monocropping farms are assumed ‘naturally bad’. These are just stereotypes society has right now. Why? Because people don’t know about food; they are not educated about where it comes from and how it gets to us.” She initially started selling just to restaurants – an exclusive market but it didn’t pay enough. She progressed to a farmers market with 500 vendors and up to 20,000 people on a Saturday morning where she can make $3000 a day. “Farmers markets are a great tool. You get these people with real cool, kitchy baskets, sunhats and recyclable bags and they go to the markets because they value food and spending money on food which means they go to restaurants as well.” Presentation is important. “Elevation, even if it’s an empty box, and colourful tomatoes in a wooden bowl…it screams sexy – you can’t not buy them. And tastings – a lot of people haven’t tried them. “If I don’t know them, I always say ‘what do you want to cook this weekend?’, give them ideas and pick out the tomatoes.” Smith says she can’t just sell to farmers markets so has developed a number of strategies to “get little pieces of my name out here and there. “So I built a story – the story is that I sell heirloom produce. They are indigenous or endemic to some area; they can be traced.” Food is the hot product right now, she says. “It’s popular. Exotic food is also popular. I never had a tamarillo before I came down here, and now I’ve

had them every which way from Sunday. “As growers, people don’t see us as we are in the field. But at the market people see me, they know my story and I get to tell them about my product. “I sell really flash dinners: $4000 and you can come and eat in my field. We do chef pot lucks. Three hundred people come out … I invite all the chefs and their families and people from the newspaper, people who write food blogs, food scientists, people who brew their own beer, food critics. “I specifically target these people and put them together in a space out in the farm because most of them are city dwellers. You get them out eating together and talking together. “It’s agri-tourism, it’s getting people to my place. I make all these deliveries, but this is showing where the food comes from and people from the city really like that.” She hires a bus to avoid drink-drive issues and tells people to wear casual clothing. “But if you spend $4000 on a dinner you show up in couture clothing…. by the end of the night they’ve got ants crawling on them, the ladies are drunk, there’s a stain on the white dress. It’s something to connect with, something real, like the food… adding value. “We have picking parties, it is all back to my insurance days of marketing, affinity marketing, getting the right people together at the right time. “Kids have to come. Farms aren’t safe places for kids but we clear out all the crazy stuff and give them a bucket and tell them to pick cherry tomatoes. “I tape a good and a bad tomato to their legs to show them what to pick. It never even goes in the bucket … they start throwing them, but it doesn’t matter. The experience that parents are getting

as they overlook that is worth is every cherry tomato I could possibly sell.” Smith says her generation is supposed to like social media, but she hates the internet. “But it is important, so when I run my restau-

rant deliveries I send messages out on Facebook and Twitter.” She makes special offers to restaurants in the vicinity of where she is already delivering and can get 75 responses in 15 minutes, with lucrative cash and carry jobs.

On farm dinners are part of Smith’s marketing strategy.

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38 management

EID benefits clear to see ANDREW SWA L LOW

Performance on crop is just one of many monitoring opportunities.

ANYBODY WITH doubts about the benefits of electronic identification would likely have had them dispelled recently at a field day in Mid Canterbury. And while the event was part of the deer industry focus farm scheme, the

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potential to boost cattle performance by way of EID was also clear. “We’ve been using cattle EID for four years,” host farmer Mike Salvesen said. “We’re starting to do a lot of selection based on previous performance, selecting cows on the performance of their calf. If the calves aren’t performing, we cull the cow. If a heifer doesn’t wean a good calf, she’ll never wean a good calf as a cow.” To allow for that selection a few more heifers than the minimum necessary for replacements are reared and those with the worst 15% of calves, allowing for birth date, are culled as R3s. The 1460ha property, Wakere, rises from 450m to 850m altitude in the foothills at the top of the Canterbury plain, near Mayfield. Salvesen and his wife Nicky bought it in 2008, continuing an extensive development programme started by the previous owners. They now have 84 paddocks on flats and lower country, up from 53 three years ago, and deer fenced area has grown from 660ha to 920ha. A strategic decision was made last year to sell the flock of 1400 ewes, with the capital released helping finance deer fencing. The woolshed was due for renewal and the altitude and associated late spring typically meant selling late store lambs at low prices. Deer and cattle were deemed a better fit. The aim is to take deer numbers from 398 mixed age hinds now (up from 350 last year) to 1100 mixed age hinds by next year or the year after, with 200 R2 hinds and 840 R1s, including stags. “Longterm we intend to take the deer to 1600 hinds.” In the meantime mixed age cows were up from 446 in 2010 to 567 last winter, and 650 now. Having tried finishing cattle, now everything left at 18-month goes in an onfarm sale in March as they weren’t finishing stock early enough to catch

premium spring prices. This year 350 dairy calves have come in with a view to taking them through to May. Salvesen says 68 are already sold for export at a good margin, with negotiations for the remainder ongoing. An already good lane system is being extended by 2km, and creeks fenced and planted. “We’re planting about 1200 trees this year. That’s enough for one year.” Analysing the impact those stock changes will make, consultant Nicky Hyslop of Macfarlane Rural Business recommends thinking product/ hectare, not stock units/ hectare. “I think that’s a much better measure of how we are performing rather than relying on stock units…. It makes us focus on productivity rather than dollars/stock unit, which we’ve tended to in the past.” While at Wakare the switch from sheep to more deer will reduce outright production/ha, the higher value of that product (venison compared to lamb) more than compensates. Hyslop says on such hill country raising productivity of ewes, which were lambing at 120130%, would be a struggle, but with deer there’s potential. Raising fawning 5% to the DINZ target of 90% would provide 3510kg more product, and $28,000 extra income, while a 5% increase in venison carcase weights would add $25,600, she calculates. “The next question is what’s it going to cost us to achieve that? A lot of it is about timing of management, and making sure you have good information to make decisions on. This is where EID fits in.” The 5% lift in carcase weight could be achieved by boosting winter growth rates 50g/day over a 120day winter, she notes. Fellow field day presenter Jeremy Johnston, who farms deer on the inland Kaikoura road in North Canterbury, showed how monitoring to page 41

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Rural News // september 4, 2012

management 41

Payback on EID ‘pretty quick’ from page 38

performance of weaners on winter crop with EID could provide the information to do that. “We can weigh more than 200 deer per hour through our set-up.” He’s found growth rates on fodder beet far exceed those on forage

rape and swedes, though switching mobs onto fodder beet for the second half of winter saw the poorer performers catch up to some extent (see table). “The ones on fodder beet were 10kg better [liveweight] than the next best group.” Across 2000 wean-

ers at $8/kg, that extra 5kg carcase weight’s worth $80,000, he points out. The EID set-up cost $14,000. It’s also allowed him to compare mobs offered minerals against those not, a notoriously difficult input to assess. R1 hinds with minerals put

on 9.94kg over autumn, whereas those without did 7.24kg. Conception rate was up 3.3% in the mineral mob too, giving a total gain worth $20.65/hind, or $18.85/hind net of mineral cost. EID’s also allowing him to select replacement hinds more objec-

tively. “The payback is pretty quick…. Every time you have a mob in the yards you want to know how they’re doing and the screen tells you that immediately.” With NAIT making EID tagging of animals compulsory – from July 1 for cattle and by March 2013

for deer – everyone is halfway to using EID as a management tool already, notes Johnston. “Half the battle is over. We’re going to have to put the tags in anyway, so let’s find ways of using Mike Salvesen it.”

Weaner deer growth on crop assessed 1st June to Mid July

Mid July to 26 Aug

Feed

Growth /day

Feed

Growth /day

Fodder beet

171g

Fodder beet

38g

Rape

73g

Fodder beet

107g

Rape & Baleage

20g

Fodder beet

101g

Swedes

-7g

Fodder beet

90g

Rape

-33g

Fodder beet

175g

You never stop striving for better results

Source: Jeremy Johnston’s Stong Jug Farm, N. Canterbury, Winter 2011.

Low breakeven EVEN WITH a “heavy handed” approach to costing an EID set-up, the performance gains for the investment to breakeven are modest, Macfarlane Rural Business consultant Nicky Hyslop showed. Based on a $5/animal Nicky Hyslop tagging cost, and $5000 to cover a reader and indicator written off over five years, EID for a 500 breeding hind operation selling weaners would cost $3.60/SU wintered, or 21c/ kgLW produced. For the same sized breeding operation but finishing 350 weaners the cost/stock unit wintered tumbles to $2.50, while cost per kg of carcase weight produced comes in at 21 cents. Meanwhile a 500 weaner finishing unit’s costs would be just $1.63/SU (NB no tag cost) or 10c/kg carcase weight. Based on a 120-day winter the extra liveweight gain required to pay for that would be just 2.5g/ day for the finisher-only, 15g/day for the breederfinisher, and 25g/day for the breeder-only operation. “It looks really attractive in terms of the ability we will have to lift our liveweight gains and it shouldn’t be looked at as just another compliance cost,” Hyslop stressed. While the reader and indicator are not compulsory requirements, those are the parts which will allow data to be captured and management tweaked. “We know EID is providing us with more tools to assess stock performance and modify policies or management accordingly to lift productivity.” That lift could come from identifying better performing genetics, feeds, and/or animal health strategies, she suggests. Salvesen echoes that. “We’ve been using EID for a while now and it’s the quiet things that enable you to make better decisions along the way. You’re able to do a lot more than just record the numbers.”

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Rural News // september 4, 2012

42 management

Dry autumn creates weed control issues Talking tillage and weeds: grower Nick Ward and FAR’s Nick Poole.

CROPPING FARMERS are debating how to deal with higher infestations

of grass weeds in cereals this spring after dry soils in autumn saw herbi-

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cide applications struggle or fail. A late harvest also meant there was little or no time to reduce weed pressure on stale seedbeds. “I would have liked another three or four weeks before we planted to get a strike of grass,” South Canterbury grower Nick Ward commented recently to a group gathered on his farm for a Foundation of Arable Research field walk. That was echoed by Hugh Wigley, who farms a bit further south in the region, near Waimate. “Broadleaved weedwise it’s as clean as ever but the problem is in last season’s grass paddocks. We lost so much seed and the Firebird and Gardoprim pre-emergence hasn’t worked.” The tricky conditions caused “one of our most interesting trial results,” notes FAR research coordinator, Nick Poole. “Our pre-ems have worked very much more effectively where the crop was direct drilled compared with topworked.” By July 18, just over 120 Italian Ryegrass volunteers per square metre had emerged in the May 8-sown wheat plots on Ward’s farm where a preemergence spray of 0.3L/ ha of Firebird was used on top-worked ground. In contrast, where the crop was direct-drilled, the same application saw the Italian infestation more than halved. Development product FAR H11-01 left a similar number of volunteers in the top-worked crop, but slashed the population to under 20 plants per square metre (ppm) in the direct drill. While both direct drill results were significantly better than the top-worked, the ploughed ground was cleaner still: both herbicide treated plots had fewer than 10 ryegrass ppm, and even untreated had less than 15 ppm.

Further north, near Ashburton, a similar trial has also demonstrated the benefit of the plough in controlling another grassweed, ripgut brome, in an autumn sown barley (Rural News, Aug 21). However, as Ward pointed out at the South Canterbury field walk, there are very good reasons he’s long since sold his plough. His current tillage tool, a Simba 400SL (discs, followed by deepripping tines, more discs, then packer wheels) produces a seedbed in one pass behind cereals, though two are usually needed after grass. Working time has been slashed, as has fuel use. Cereals sown with a 4m Vaderstad drill are established in 30-35 minutes/ha with 12-14L of diesel/ha for the cultivation, and 6-7L/ ha for the drill. “When we were ploughing it would have been well over an hour [to establish a cereal crop per hectare] and as the farm has got bigger, we haven’t used any more fuel.” The system also works really well following a “harvest from hell” and late start to autumn work, as was the case this year. “With one cultivation, and one pass with the drill, you can really turn it around.” Ward’s advice for anyone thinking of adopting a min-till or top-work approach, is to “start with the [choice of] drill and work back.” As for how to deal with the weed legacy, the discussion centred on herbicides Othello or Twinnax. “The Hussar window has gone, so really you have to work back from Twinnax,” noted local agronomist Duncan McLeod. Poole says FAR’s work with Twinnax shows a fall-off in efficacy at rates much below 0.3L/ha, and most of that work had been at earlier timings. “Othello applied late has worked quite well,” added FAR colleague Rob Craigie. – Andrew Swallow

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Rural News // september 4, 2012

44 animal health

Bullet no answer to quiet dog THIS ARTICLE is about Huntaways and how many people have, in my opinion, a misguided view of the breed. Too many people expect non-stop noise and if a dog doesn’t have it, it is bullet material. Sadly, these people have never experienced a clever natural Handy Huntaway working, or had the joy of owning one. It frustrates me when I see people advertising Handy Huntaways – Huntaway Heading X – and asking a hefty price. Either, it is an unplanned pregnancy or the person has little knowledge of working dogs. Occasionally the odd one turns out to be a cracker, but for the number born the percentage is low. When I was a girl, and for many years prior, Huntaways were a very different dog than the

average we see today. They were small to medium sized, came in many different colours, and had various coat lengths – soft and silky, or grizzly was very common - and having white markings on the feet and chest wasn’t a crime. I love looking at old photos of our working dogs, particularly Huntaways as it brings back fond memories of hard working, clever little dogs that didn’t require hours and hours of training before joining ‘the team’. They were a handy type of dog; they headed as good as they hunted, they

fossicked in the scrub, worked in the yards and handled big mobs as well as a couple of sheep with ease. They knew when they were supposed to head, and ran quietly, barking only when in position and in control of the sheep. They didn’t waste noise and used it wisely, and they naturally gave stock time and space. Nimble and quick, these dogs were the back bone of New Zealand and some of the best were seen competing in trials throughout the country. No one turned their nose up when a fluffy coated dog with white on its paws stood on the mark to hunt sheep up the hill. Oh, how things have changed. Fashionable

Huntaways now come in black and tan with a short coat, and white markings are shunned. Big became best, but at last we are realizing that size isn’t everything - with it conformation and agility are lost, and premature aging and physical weakness are gained. Food bills are high. In the old days the

Huntaway didn’t have non stop huge noise and our ancestors still managed to get the work done, but dog trials have had a strong influence in the breed and judges were impressed by big dogs with big noise that demanded the sheep went up the hill in style – hence the dog we know today developed.

I find it interesting, when our Huntaways were small hairy colourful dogs most farmers could introduce them into their team with very little training, if any, and in no time at all they were as good as his right arm. Today, however, Huntaways seem to require a lot more training and a lot more controlling

– a lot of farmers are struggling. Have they deteriorated rather than the dog? If I was a lot younger than I am, and there wasn’t the neglect of many farm dogs, and the value of a good pup and dog was where it should be, and I had the heart for heavy culling, I would try to breed back the Huntaway of yesteryear. They were worth their weight in gold as many of us are lucky enough to know. We all had at least one in our team. Remembered with love - Ned, Deny, Pete, Bruce, Jean and Brooke - my Handy Huntaways. • Anna Holland is teaching people dog training. www. annaholland.co.nz or Ph 06) 388 1318 or annaholland@xtra.co.nz

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Rural News // september 4, 2012

animal health 45

Pasture only won’t do for today’s cows IT MAY be considered near-sacrilege to say it in New Zealand, but pastures alone can’t cut it for the modern dairy cow, says a consulting nutritionist working on both sides of the Tasman. The quality and quantity of nutrients in pasture simply isn’t high enough to match today’s dairy cow genetics, according to Tasmania-based Pip Gale. “There’s a limit to the amount of sugar a cow, and more particularly its rumen bugs, can use before you start running into problems… Even the high sugar grasses lack balance,” he says. Some spring grasses are up to 15% sugar, but on pasture alone such levels can lead to acidosis as rumen pH levels drop too low and the rumen wall papillae become much less effective at absorbing nutrients, he argues. Gale, who works as a consultant to Ingham Feeds & Nutrition among others, says the key to upping milk production is understanding, and optimally feeding, rumen bugs. That requires balance between sugar, degradable protein, fibre and starch intake to maximise production of propionic acid, a pre-cursor to blood glucose and then milk lactose. Propionic acid production is driven through fer-

mentable carbohydrates , particularly starch or “non fibre carbohydrates” – NFC. Typically there is enough protein in pasture for a cow’s requirements, but if this isn’t able to be used because of insufficient NFC in the diet, surplus nitrogen is excreted. Gale says this is particularly important in catchments such as the Taupo basin where eutrophication is being partly blamed on nitrate leaching from dairy cows. “Generally speaking, you need 25% starch in the total ration to get the right balance between NFC and rumen degradable protein (RDP) when you have a lot of green spring grass in the cow’s diet,” he says. Cereal grains to complement pasture in cows’ diet is the best way to increase NFC’s, including starch, he believes, and there’s a golden 10-week window around calving to do it: from four weeks prior to six weeks after. That’s the best time to get the rumen bugs up to maximum production and in turn reach peak milk production much more quickly than the traditional 12 weeks to peak. Even conservative estimates of the gains from a complementary cereal grain ration of 3kg/day in early lactation put production potential up 50kg MS/

cow, through better NFC to RDP balance, he says. High quality cereal grain feeds also help balance macro nutrients such as calcium, magnesium and sodium.

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Rural News // september 4, 2012

46 animal health

Reflections of welfare reforms Last month the Ministry for Primary Industry released a national Animal Welfare Strategy and proposed changes to the Animal Welfare Act. This was followed by meetings with interested parties around the country. Sue Edmonds reflects on the proposals as presented in Hamilton last week. WHILE MOST farmers take animal welfare seriously, there is little in the current Act to urge the laggards across the line, judging by a recent Ministry for Primary Industry workshop on proposed changes to it. There are now fifteen Codes of Practice, complete with minimum standards for almost every aspect farm animal husbandry. But the Codes are somewhat toothless when it comes to penalising those who don’t meet those standards. For the last eighteen months MPI staff (for-

merly MAF) have been working with stakeholder representatives and an advisory group on potential options for turning most of those minimum standards into regulations and guidelines, with the creation of an Animal Welfare Strategy. The strategy was released last month and now they’re presenting to interested parties at six meetings around the country, seeking feedback and submissions. They hope to get parliamentary approval to make changes to the Act by the end of this year,

spend next year getting the words right, and bring it into effect during 2014. It’s a bold timetable, and from the robust feedback at the Hamilton meeting, they’ve still got a lot to think about and a lot of people to get working together. So what will all this mean for farmers? What’s in current welfare codes has been well worked over by experts working with NAWAC. The aim is not to change or relitigate minimum standards, but get experts at MPI to turn as many into enforceable regulations as possible.

For those already following code recommendations, there will be no worries and no changes. The aim is to get those who aren’t meeting recommendations to improve, with spot fines of up to $1000 for non compliance being considered. The ministry notes that since the current version of the Act was brought into being in 1999, communications advances mean instances of real or perceived poor animal welfare can be broadcast to the public and international markets in a number of new ways, such as through phone cameras and social and media networks. In a country which relies on selling food to the world, we need to watch our image continuously. But there have been other changes too. Some industry organisations

Healthy herd: most farms are doing a good job on welfare, says MPI.

have put in place their own advisors after MAF’s workforce was drastically reduced. Farming methods have advanced, and those assessing welfare

cases need to be industry specialists, rather than farming generalists. It’s clear there will be a huge need for collaboration between indus-

try, Government, and clear definitions of who does what in education and training, and communication specifics for to page 47

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Federated Farmers had two representatives at the MPI meeting in Hamilton. “The creation of regulations will serve to kick the few bad farmers into line,” Waikato president James Houghton, admitted. Houghton says he agrees with the proposals in general, but at the meeting stressed the strategy should look forward, not back. While some attendees had talked about overseas expectations of animal welfare here, Houghton’s view is that rather than using words like ‘better care of animals’ as an outcome, the industry

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should be striving to lead the world. “Our approach to animal welfare must continue to be based on science and regulation, and not merely pander to public opinion.” James Mills, chair of Feds’ Meat & Fibre in Waikato, also agrees with the overall concept but is “somewhat concerned” a change of government could see groups such as the Greens take a leading role in animal welfare issues. Such a development could see the balance of changes swing too far to punitive compliance, without recognising that most farmers are doing very well by world standards, he says.

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Rural News // september 4, 2012

animal health 47

Pasture limitation argument panned ARGUMENTS THAT pasture alone can’t meet a modern dairy cow’s needs have been panned by a leading New Zealand-based researcher of rumen function. Rural News ran Tasmanian-based consultant Pip Gale’s arguments (see p45) past Lincoln University specialist Jim Gibbs. Gibbs says the case put by Gale, and many others, for balancing pasture diets is a myth. “It’s wrong and it’s misleading, particularly coming into spring. This is doing a disservice to the New Zealand industry.” Contrary to the suggestion genetics have moved on from what pasture alone can provide, Gibbs says New Zealand cows

have been aggressively selected from performance on solely pasture diets for 30 years. The rumen papillae damage warning is a contradiction of current literature on both rumen pH and rumen epithelial dynamics, he adds. “The rumen’s removal of volatile fatty acids that drive pH is limited by the high N content, so increasing the starch content in addition to the existing sugar content just adds more vfa production. It will not and cannot help the rumen pH in any way.” There’s also no evidence increased starch in a pasture diet reduces urinary N excretion. “Sugars are equally fermentable, and can be equally well

Welfare reforms from page 46

different farming groups. As one participant at the Hamilton meeting pointed out: “It’s no good saying ‘It’s on our website’, because the audiences will be so different in both their focus and age groups for dairy, sheep and beef, pigs, goats etc.” Currently many of the 16,000 welfare complaints made each year are dealt with by SPCA inspectors. Current wording of their roles gives them limited powers. With little financial support, many cases they see are not worth the present cumbersome system of taking a prosecution, which is the only significant penalty at present. The skills and authority levels of the compliance workforce that eventually arises, will have to be carefully measured. And many of the measurement systems, to be able to tell whether things are actually improving, will begin from a standing start. It’s an ambitious project. Let’s hope they get it right.

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used for ‘matching’ fermentable ME and free rumen N – adding starch does not change N excretion.” As for the comment that 25% starch in the diet

is a general requirement, Gibbs fires it back at Gale. “Says who? A large number of profitable, high production farms feeding solely grass in New Zealand would disagree. 25%

starch is an enormous supplement input and is never called for from a rumen energy transfer perspective.” The mineral supplementation case for grains

Jim Gibbs, Lincoln University.

doesn’t wash with Gibbs either. “There is plenty of calcium [in pasture] and magnesium and sodium

are cheap and easily added to grass systems…. Grain alone does not help in this matter.”

Rural News // september 4, 2012

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Aussies assess FMD readiness A MEETING in Sydney last week of Government officials, livestock leaders, scientists and other industry stakeholders marked the first truly national

approach to addressing Foot and Mouth Disease risk, says Australia’s chief veterinary officer, Mark Schipp. The Australian Bureau

of Agricultural and Resource Economics and Sciences (ABARES) estimates even a small, threemonth outbreak would cost Australia $A7.1 billion

while the toll for a yearlong epidemic would hit $A16 billion. “Only a decade ago an outbreak of FMD in the United Kingdom cost

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their economy the equivalent of $A19 billion, and it was only last year that South Korea experienced multi-billion dollar losses from this disease,” notes Schipp. The forum discussed potential use of vaccination, strengthening emergency response capacities, and the use of scanning and strategic intelligence to provide early warning. Schipp says a number of FMD preparedness issue require comprehensive national coordination as they relate to on-shore (post-border) activity where the responsibilities of the Australian Government, states, and territories require a team approach to be effective. “That’s why many sessions of the forum were devoted to issues of shared responsibility… to ensure optimal national FMD preparedness.” The forum was also attended by a representative from Coles Supermarkets, who reiterated the need to consider potential consumer behaviour, and develop education strategies that ensure consumers understood that there was no public health risk posed by the consumption of meat from infected or vaccinated animals in the unlikely event of an FMD outbreak. “The last thing the country needs in an FMD outbreak is for people to Loss of skin and sores between the hoof claws in cattle, caused by FMD.

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stop eating meat and other animal products because of misperceptions about their safety,” says Schipp. Attendees also agreed on the value of developing industry business continuity plans for FMD, and the importance of having contemporary traceability arrangements across all sectors that meet the national need to quickly and accurately trace livestock movements in an emergency situation. Duncan Rowland, the Executive Manager of Biosecurity Services at Animal Health Australia, presented to the forum on the importance of livestock traceability. “Inadequate traceability arrangements in one sector greatly increase the risk to other sectors, given that the effectiveness of control measures will rely upon how quickly susceptible animals can be traced,” says Rowland. Participants indicated support for a national livestock standstill simulation exercise, to test current arrangements and ensure they will be effective should an FMD outbreak ever be discovered. “The agreement by all stakeholders, especially around swiftly implementing a vaccination campaign if needed, will ensure Australia is better prepared for the threat of FMD,” says Schipp.

Rural News // september 4, 2012

animal health 49

No CCD here: hives on a New Zealand farm.

Bee colony collapse causes identified alan harman

US AGRICULTURAL Research Service (ARS) scientists have found bees affected by colony collapse disorder (CCD) carry a colonyspecific spectrum of three or four pathogens. More than 100 hives from nine states—California, Florida, Pennsylvania, Maryland, Nebraska, New York, South Dakota, Wisconsin and Washington—were sampled between 2004 and 2008. Researchers’ found, according to their report in the journal PLoSOne, the most distinct difference in the makeup of the pathogen clusters was between CCD-struck colonies in the eastern and western states. ARS entomologist Jay Evans says the geographic differences indicate it is unlikely any single recognised agent is responsible for CCD, making the search for unifying predictors more complicated. Samples from eastern apiaries found groupings tended to be all viruses but in the west a mix of viruses and the gut parasite species Nosema was found. Nosema apis and acute bee paralysis virus (ABPV) were linked with CCD colonies from western states,

NZ perspective Federated Farmers Bees chairman, John Hartnell, says Colony Collapse Disorder hasn’t been seen here, but it is a risk if many more pests or diseases of bees get into the country. “The US has hundreds of hectares in the same crops and their beekeeping industry is almost totally focused on pollination with very little honey production,” he told Rural News. “Hives move all around the country and the bees are exposed to lots of different chemicals and diseases, so it’s a very different industry to here. But if we do get diseases like European Foulbrood and the Acute Bee Paralysis virus on top of varroa, it’s that sort of cocktail of bacteria and pests that could cause it [CCD].” Hartnell says bee industry representatives are working with the Ministry of Primary Industry to try to make sure no other serious pathogens or pests, such as varroa, get in. “If we do get another major pest or disease it will seriously affect our ability to run as an industry.” More sentinel hives around ports is one option being looked at.

while these species were extremely rare in eastern honey bee colonies regardless of the presence of CCD. Collapsing colonies also differed overall from each other in the predominant pathogens, suggesting these pathogens were lucky hitchhikers on the path to colony ruin, without any single factor being a consistent cause of collapse. The largest single class of pathogens found in hives with CCD was

RNA viruses, which are very small viruses associated with the mitochondria of host cells. Each pathogen was present in some healthy colonies, but not at the levels found in CCD-struck colonies. The study confirms earlier findings from a small number of samples that honey bee colonies showing CCD symptoms have significantly higher pathogen levels than colonies from apiaries that reported no CCD.

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Top tips for bees CROPPING, PASTORAL and horticultural farmers’ actions “can really help or hinder the bees we all depend upon,” says Federated Farmers Bees chairman John Hartnell. As part of Bee Week Feds issued four bee-friendly tips: • Take care when using agricultural

sprays, particularly when plants are in flower. As a rule, if bees are flying, don’t spray until dusk. • Before using agricultural chemicals, read all directions for use, in particular any impacts on livestock, including bees. If in doubt, contact the manufacturer, or supplier.

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Rural News // september 4, 2012

50 machinery & products

New mowers proven in tough conditions NEW AND robust, highperformance Taarup mower conditioners proven recently in tough Australian conditions will soon be launched in New Zealand, reports distributor Power Farming. The company will launch two models in the Taarup 4300 range: the 4332 LT with left-hand drawbar and the 4332 CT with centre-pivot drawbar. Both models have “outstanding Taarup technology” including rounded discs, and the maker’s SemiSwing conditioners, SuperFloat suspension and FlipOver wide-spreading vanes. The mowers were released in Australia early

this year, their features appealing to Australian farmers – “and they will be well received in New Zealand,” says Power Farming Group’s grass machinery sales manager for Australia, Tim Lawrence. “Strong build, sophisticated features and 3.2m working width mean the 4332 CT and LT will appeal to dairy and sheep and beef farmers. They can easily be operated with a 100hp tractor. “The new models maintain some of the robust properties that have made Taarup mower conditioners so popular in Australia, including a fully welded cutterbar with round discs. The round

discs are particularly attractive because they suffer less damage from stones getting trapped between discs.” The unique circular design of the discs means a constant distance is kept between their outer edges. Stones are expelled immediately before they can cause a blockage, minimising shock loads on the transmission. This in turn improves durability and cuts down on maintenance. Lawrence says for the new 4332 models Taarup has improved the engineering of the cutterbar and added quick-fit blades. “One change to the cutterbar is that each spin-

Taarup 4332 mowers are robustly built and have high performance features appealing to Kiwi farmers, says distributor Power Farming.

dle is now supported by two bearings, rather than one. This will increase reli-

ability. “The new Taarup ProFit quick-change

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system makes it much easier to change knives. The ProFit package comes with a special lever for changing blades. You just place the lever around the bolt, push down the spring by turning the lever, and the knife is ready to be replaced by a new one.” Taarup has also redesigned the drive line of the 4332 mower conditioners, the most significant changes in the centre pull 4332 CT model. “The new PTO driveline is stronger and more durable than previous models,” Lawrence says. “The biggest change is the location of the gearbox on the centre-pull model. It is now located underneath the mainframe rather than on the mower itself. This means it moves less when it is working so it is more efficient.” Taarup’s SuperFloat suspension system carries the cutterbar and conditioner independently of the main chassis with two

adjustable springs. SuperFloat allows close following of ground contours. It reduces shock loads on the rest of the machine by absorbing much of the weight of the cutterbar. The Taarup 4332 models Power Farming has specified for New Zealand and Australia come standard with SemiSwing steel tine conditioning and the FlipOver wide spreading unit. The SemiSwing flail tines condition as aggressively as fixed tines give a high degree of protection should the mower hit a foreign object. The conditioner plate is adjustable to three different positions for less aggressive action while harvesting lucerne. The spreading vanes distribute the crop evenly across the full working width, allowing speedier drying and eliminating tedding. Tel. 07 902 2200 www.powerfarming.co.nz

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Rural News // september 4, 2012

machinery & products 51 Ploughmen seek Croatian tractor for contest NEW ZEALAND ploughmen arrived in Croatia on August 22, ready to contest the 59th World Ploughing Contest on September 14 and 15 at Biograd na Moru. In the team are Murray Redmond, Methven, conventional class; Malcolm Taylor, Hamilton, reversible class; Paul Murphy,

Christchurch, manager / judge; Bruce Redmond, Methven, conventional coach; and Alan Wallace, Te Awamutu, reversible coach. Their gear was waiting for them on arrival, reports Paul Murphy. “We went to the contest marshalling yard today and found Malcolm’s tractor

New Zealand ploughmen arrive in Croatia ready to contest the 59th World Ploughing Contest. and reversible plough competitor were there as well as the NZPA plough box containing plough parts. Murray’s conventional plough sent from New Zealand was also on site….

“We’re still trying to track down a tractor for Murray” an ongoing problem caused partly by having to deal with a government department “whose way of thinking is ‘any

tractor will pull a plough’. We’ll meet the person involved with the tractors tomorrow or the next day so there is some good news.” Daytime temperatures are 32-39oC and forecast to continue. Watch Facebook (NZ Ploughing Association) and www.nzplough.co.nz

Gordon Handy sites a close working relationship with CRT as benefiting both organisations.

Tough year, just rewards A SOUTH Canterbury farm machinery business is celebrating success, growth and development despite taking a hit during the global economic crisis. Gordon Handy Machinery Ltd (GHM), a John Deere franchisee, is through the lows of 2008 when sales dropped $17 million. Now the business has been named CRT Card Partner of the Year – public recognition for its positive turnaround. The award notes business growth, transactions and sales. A wide variety of businesses, from multinationals to smaller operators, compete. With about 4000 CRT supplier businesses eligible, it is no small feat to win the supreme award. Chief executive Gordon Handy says the award and recognition means a lot to the business. “We are pleased and honoured to have won.” It is especially pleasing to win the top award in 2012 after coming so close last year when GHM was runner up to Meridian Energy. Handy cites a strong working relationship with CRT as benefiting both organisations. “[CRT] is progressive so it is pleasing to see we are tracking with them.” GHM, family owned, was set up in 1979. It has its head office at Washdyke, Timaru, and branches at Oamaru (a new building is planned here), Blenheim, Nelson, Kaikoura and Greymouth. Staff number almost 90. Handy says having branches around the South Island has allowed the business to diversify and spread any risk. “Generally you do not see all sectors of farming down at the same time. Last year… all sectors were performing well and it was good to see farmers enjoy the good times together.”

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in brief Arable on the rise Arable farming is on the rise again, on the back of good prices and consistently good profitability. The Ministry for Primary Industries (MPI) has released an analysis of arable production and profitability as part of its annual Farm Monitoring Report series. MPI’s report shows arable farm profit before tax increased 136 % on the previous poor season, to $448,700 for the year ended June 2012. To view the full report, go to the Publications section of the MPI website, http://www.mpi.govt. nz

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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: Ken Bill 021 925 034

Rural News // september 4, 2012

52 machinery & products ‘Pocket prompt’ app for farmers A NEW smartphone ‘pocket prompt’ application (app) quickly alerts a user to a farm task that needs doing ‘now’, says the developer, Baletwine Ltd. Its purpose is to deliver instant, practical, time and money-saving information for daily farming situations when and where needed most

– such as way out in the back paddock, said Richard Brown, Baletwine Ltd owner and Farmhelp product developer, launching the product recently. “The beauty is users don’t need cellphone reception once the app is downloaded. Remote locations are no barrier. With… rugged hand-

sets available suited for on-farm use, they are the ideal vehicle for this app.”

“It’s a Kiwi DIY solution, backed by smart technology.” Brown says it’s about “saving time and money by getting things right

first time, with practical information at the fingertips. It’s a Kiwi DIY solution, backed by smart technology. “There are 232,000 farm workers and lifestyle block owners in New Zealand. Many need only a simple prompt to help them identify and/or fix a problem, but they need it fast. It might be anything

from fixing a fence or more advanced feed calculations.” The Farmhelp app currently has nine different farming packs that collectively cover 67 common farming tasks. People can try before they buy by downloading free Farmhelp tasks from Google Play. www.farmhelp.co.nz

Northern Southland contractor Mike Harris is impressed at the amount of chemical he saves when using the Rotowiper compared with spraying thistles.

Weed wiper halves chemical GA R ETH G I LLAT

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A 6M linkage weed wiper will allow a northern Southland contracting firm to slash chemical costs and take on work it has never done before, says the owner. Uni Agricultural Spraying Ltd owner-operator Mark Harris recently added the FU600 Rotowiper 6m linkage weed wiper to his Te Anau fleet after seeing it at the National Fieldays. Already he is impressed by the cost savings he’s achieving. “When you’re spraying thistles with conventional boom sprayers the chemical cost is $100/ha compared to $20/ha with the Rotowiper. I can work an eight-hour day and use only half a 120L tank.” The machine’s ability to target weeds that grow 33% higher than the pasture canopy is the main factor behind chemical savings, Harris says. And this brings further advantages. “You can spray for weeds such as thistles with the chemicals they are most susceptible to, without damaging other pasture.” The Rotowiper is great for thistles, rushes, ragwort, wild turnip and fat hen, amongst other weeds, says Harris, who has jobs booked up for the machine all through spring and summer. He plans to work pastures and brassica crops. “I’ve got quite a lot of work lined up for it.” While Harris has known of weed wipers for some time, the FU600 was the first model he bought, especially because it doesn’t leave lines of spray as other weed wipers do. “Because the Rotowiper dispenser rotates, the carpet gets wet enough to be effective without dripping spray and leaving lines of dead pasture. Previously I saw [such machines] as not being worth pursuing.” Though Harris uses a 90hp tractor to operate the machine, he believes it would be just as effective on a 60-70hp tractor. “You’re only towing around 120L; it’s not like a boom sprayer which can carry as much as a ton.” Tel. 03 308 4497 www.rotowiper.co.nz

in brief Effluent support WAIKATO FARMERS on high risk soils should seek early support in light of the Waikato Regional Council’s new effluent compliance monitoring process, advises Dairy NZ. Development Project Manager for Effluent, Dr Theresa Wilson, says farmers will now consider how the changes may impact them so they can prepare for the season. “We hope farmers contact DairyNZ for resources and accredited design companies for technical support if they have any questions around how they will perform.” Wilson says if farmers are unsure of their farm’s soil risk, DairyNZ has a new soils guide to help them assess risk.

Rural News // september 4, 2012

machinery & products 53

Cubicle sheds provide clean, dry bedding bedded area. The patented design of the HerdHomes cubicle shed ensures a clean, dry bedding surface for animals using the cubicles. The key to this, the company says, is the positioning of the cubicles down the center of the shed, keeping it much drier and warmer due to natural light and patented airflow design. Also, specially designed slatted floors on the walkways remain clean as manure passes through

Waikato farmer John Pouls (left) says there is no need to clean the floor.

the slats into under-floor bunkers, preventing effluent being transferred into the cubicles from animals’ feet. The small amount of compressed manure present on the hoof is said to quickly dry and crumble off the matting when cows step in and out. The slats themselves are unusual. Unlike most European-designed slats, said to block when straw or other material is spread, the HerdHomes slats do not, even when covered with slatted rubber such as in place at Pouls’ farm. HerdHomes and Pouls have developed an effective effluent containment system using the bunker storage under his sheds. All dairy waste water now runs into the bunkers and mixes with effluent already present.

This is stirred and then pumped out to his irrigation system, ensuring the nutrients are applied to the paddocks as and when required. Alternatively it can be taken out via a slurry tanker and spread on areas of the farm not irrigated. Tel. 07 857 0528

Cows inside the shelter in July.

Clear roofing FURTHER DEVELOPMENT of HerdHomes roof designs now allow the use of commercialgrade, cold-rolled steel trusses spanning up to 16m. Such roofs may be clad either with traditional cladding and/ or with transparent plastic. The company says this has led to discussions with robotic milker companies interested in HerdHomes cubicle shed designs’ potential for improving animal health and reducing operating costs. Overseas the benefits of clear roofing are becoming apparent, the company says, with potential to help combat vitamin D deficiency in fully housed animals that lack exposure to sunlight – not an issue under a HerdHomes clear-roof shelter.

Designed with ith a combination of tines, tines discs and rollers the CLC serves ser es as a stubble incorporator and primary cultivator.

• • • • • B&POW0031

HERDHOMES SYSTEMS says no-maintenance shelters continue to revolutionise animal housing. Whereas bedding in traditional cubicle sheds needs regular maintenance to keep it clean and dry, under a HerdHomesdesigned roof no maintenance is needed, the company says. Proof of this is one of its sheds – in Waikato, owned by John Pouls – which has functioned for five years without needing cleaning of the floor or

10 tine 3.0 metre and 12 tine 3.5 metre units available 280mm spacing 3 gangs of tines Kverneland’s patented auto reset system Rear cage and offset disc attachments available

Contact your local Power Farming Dealer or visit our website www.powerfarming.co.nz

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Rural News // september 4, 2012

54 machinery & products

Polaris quad has good story to tell INDUSTRY BENCHMARKS set repeatedly by Polaris quads in ride quality show these machines to be “getting better and better,” says maker Polaris Industries. Since the launch of the Sportsman nameplate in 1996, each new model has raised the bar, such as with the new Sportsman XP, the company says. With a 4-stroke, electronic fuel injected engine, and choice of a 550cc or 850cc, the Sportsman XP has been engineered for extreme off-road perfor-

mance. “We took the engineering know-how of an entire category and turned it upside down,” says Polaris. “Well, technically, sideways, by rotating the engine 90 degrees. This gives the rider superior ergonomics with 33% wider floorboards and a narrower space at the knees and ankles. Besides delivering a sporty, nimble feel, the positioning reduces leg fatigue and increases rider comfort.” Polaris says it offers the best electronic power

steering (EPS) on the market. It has 30% more power assist than the leading competitor, plus variable assist for easier steering effort at lower speeds and more responsiveness at higher speeds, it adds. “EPS delivers a safer and more enjoyable ride, as it minimises the distraction of bumps, letting you focus more on the terrain. Plus our 2011 styling means you get a 16% larger fuel tank capacity on XP EPS models. EPS is optional on XP550.”

design features

On-demand true AWD. 30.5 cm ground clearance. Automatic Polaris variable transmission. Active descent control and engine braking. Lock-and-ride front and rear racks. Five-layer metallic automotive-style finish. Roller-driven clutch for faster clutch response.

Sportsman XP has the biggest rack capacity at 55kg in the front and 110kg in the rear. And there’s enough power to haul trailers and sprayers with a 680.4 kg pulling and towing capacity. The Sportsman was the world’s first ATV with IRS. Now it leads again with Rolled IRS with 26 cm of travel, which is angled rearward for that legendary Polaris smooth ride and less rear-end squat during acceleration. A common problem for ATV riders is fatigue, says Polaris. “Longer dual A-arm front suspension with 22.9 cm of travel and preload adjustability decreases kickback, reducing rider fatigue. Sportsman XP models have the highest ground clearance at 30.5 cm.”

Polaris Sportsman XP.

Polaris says the Sportsman XP offers the best electronic power steering.

www.polarisindustries. co.nz 0800 440 290.

“Buy your last plough first” Invest soundly in a Rata 803 plough. Targeting Contractors and Large Scale Farmers the 803 plough is designed to suit New Zealand conditions.

MT800 TaNkER/MIxER A Mobile Mixer/Tanker built on a strong galvanized steel frame can carry and mix colostrum, milk powder or any other calf supplements that you want to feed out.

The short length, 850mm from point to point, combined with the balanced weight gives this plough an unmatched ability to stay “put” in the ground, and follow the field’s contours.

NEW FOR 2012!

Bolt on greaseable and replaceable furrow pivots give it a vast life, as well as distributing the pressure along the main beam. Further features include: n Hydraulic vary width P n Auto reset beams P n Narrow transport width P n Good under beam clearance P n Dealers NZ Wide P Contact us now for your nearest dealer and to discuss your ploughing needs

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W: www.rataindustries.co.nz

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Rural News // september 4, 2012

machinery & products 55

Plough could be his last

“That’s the good bit about this design. By using the depthadjusting ram to lift the wheel out, you get the whole unit’s weight punching the shares even deeper into the soil.” working a wide range of soils and topography. Rata has since 1981 manufactured “innovative and versatile” front loaders and materials handling attachments, and subsequently began making ploughs and cultivation equipment. The aim was to match the most exacting standards then set in New Zealand, says group sales manager Glenn Walton. He attributes Rata’s success to “knowing how to make things that make a huge difference to daily chores around a farm”. John Wild’s operation is large by most measures, Walton says. He ploughs 800-900ha a year and direct drills up to 1500ha. Rolling and steeper country adds challenges, none more so than the abrasive, silty soil he works to a fine tilth. This demands a plough with special qualities and Wild is said to have tried many ploughs over the years. Most of the imported ones he has tried, and New Zealand-made ploughs

with limited adjustability, have not cut it, Wild says. The Rata 803 plough range has been designed to suit New Zealand conditions, giving good underbeam clearance and narrow transport width during on-land or in-thefurrow ploughing. Hydraulic steering and variable width are standard. Options include furrow skimmers, front furrow wheel, spring-loaded rockjumper coulters, plastic mouldboards and hydraulic draught bar. The implement never needs to be changed for another when terrain, soil consistency and access to tight paddocks throw up challenges every few hours, Wild says. The Rata 803 offers diversity, with mounting and operating solutions such as no other plough he has tried. “First, it’s hydraulically mounted to the tractor at the back with a double-acting hydraulically-operated trailing wheel. That’s the good bit about this design. “By using the depthadjusting ram to lift the wheel out, you get the whole unit’s weight punching the shares even deeper into the soil.” Matched mouldboards were a feature found usually on competition ploughs, and a clear advantage on hilly country was the Rata 803’s 850mm spacing between points rather than the usual 1000mm, although both are available. “This means a more even depth across the full width of the unit in ground with plenty of humps and hollows. The follow-on boys with their power harrows are always commenting on the flat, even top they now have to work with.” Wild says the semitrailing design of the Rata 803 allows it to swing longitudinally behind the tractor, easing travel through narrow gateways and along narrow lanes. And he finds he can tow a ute behind the rig. Tel. 03 688 2478

A six-furrow Rata 803 plough shows evenness and exceptional overturn in dry stony conditions.

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OTAUTAU CONTRACTOR John Wild knew the saying ‘buy your last plough first’. He put steel to it when he bought a Rata 803 semimounted variable-width plough. Rave reviews from contractors are not unknown to the plough’s maker, Rata Industries Group Ltd, Washdyke, Timaru. And the company says it gets unsolicited testimonials from independent farmers

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Rural News // september 4, 2012

56 machinery & products Easy data transfer of NAIT info A NORTHLAND livestock company is using new Gallagher software to make the transfer of NAIT information easier for clients. Sloane Livestock Ltd, serving farmers “from the mid North to the Far North”, is an accredited information provider for NAIT. “Since the NAIT scheme started, we’ve found quite a high proportion of our clients prefer us to do the NAIT transfer work

for them,” says senior agent Leo Sloane. “It’s become an important part of the service.” Sloane Livestock collects EID data on a Gallagher HR3 handheld tag reader and uses Gallagher NAIT Exchange software to transfer information to NAIT. “It’s a very simple process,” says Sloane. After a day of visiting clients he downloads the information collected on the HR3 tag reader into

his computer. “You just plug the HR3 into your laptop and all the information is there. Then you select the animal tag details from the session file you want and add in the NAIT number of the seller and purchaser. Then you hit go and it’s gone. It couldn’t be easier”. “The first few times I did it I couldn’t believe the information had gone through, so I checked up through the NAIT system and it was all there.”

Sloane says Gallagher NAIT Exchange software is an advantage of using Gallagher EID equipment. He recently bought four handheld tag readers. Sloane says the HR3’s ease of use and Gallagher’s support were the deciding factors. Aftersales service by Gallagher territory manager Russell Wilson and technical support manager Geoff Pooch “has been nothing short of brilliant”.

Power Farming has signed a long-term contract to continue distributing Kverneland and Vicon machinery in New Zealand and Australia.

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POWER FARMING is consolidating its brand offerings as it prepares to host at least 80 New Zealanders at Australia’s largest working field days. Power Farming machinery division general manager Graeme Leigh says the company has signed a new long-term contract with the Kverneland Group. “We have been distributing Kverneland products in New Zealand since 1989 and in Australia since 2007, and we look forward to continuing what has been a very successful relationship,” Leigh says. “Kverneland Group’s new owners have announced they intend to double its turnover to 1 billion euros by 2017. This is exciting news for the Power Farming Group. We and our customers will benefit from the investment Kverneland are making in their product portfolio. “Kverneland has been at the forefront of technological developments in disc and drum mowers, rakes and tedders, electronic metering and calibration of fertiliser spreaders, and ISOBUS technology. We expect them to continue their major investments in research and development.” Kverneland, Vicon and Taarup machines will be among those Power Farming’s sister company PFG Australia will show at the ‘PFG in Action’ demonstration days, on August 29-30 at Shepparton, Victoria. Other brands include McHale, Great Plains, Simba, and Maschio with all machines powered by PFG tractors – Deutz-Fahr, SAME, Yanmar and Kioti. PFG Australia grass machinery sales manager Tim Lawrence says the demonstrations will take place on a 20ha site which includes paddocks sown in grass. “Those who attend will see some great machines in action and great results. We will also be offering some attractive deals over the two-day period.” A group of at least 80 New Zealand Power Farming dealers and farmers will attend the event, which includes farm visits and entertainment.

Market Data Every Week Check out the latest market data at www.ruralnewsgroup.co.nz/markets

Rural News // september 4, 2012

motoring 57

Leave the anorak at home a da m f rick er

DIESEL CARS were long ago the preserve of anorak wearers obsessed with fuel economy statistics that they neatly recorded in log books. These blokes – they were always blokes – would focus on mileage and gloss over the reality of the driving experience these early diesel cars offered; fast and refined they were not. Times have changed though, as the Hyundai i40 ably demonstrates. The 1.7L UII diesel in this slick Korean wagon is a superb unit, punching out useful power of 100kW@4000rpm and torque of 320Nm@2000-2500rpm. And the power delivery is quiet and refined. The driver of a 1979 Mercedes Benz 300D should have been so lucky. The 6-speed automatic gearbox has enough ratios, and is clever enough to select the right one, to

Nice rack!

Safety features include ESC (electronic stability control), ABS braking, traction control, nine airbags and ESS or emergency stop signal, which activates all rear lights under emergency braking to warn following drivers. We drove the 1.7 CRDi Elite LTD that comes with a list of kit as long as your arm: leather seats that are powered, heated and ventilated; premium trim and sound; climate control; reversing camera; rain sensing wipers; daytime LED running lights; keyless start; USB connection; Bluetooth… you get the point. This high-spec model costs $59,990 but you can get into a diesel i40 for $48,990. A solid effort all round, the i40, and worth a look as an alternative to the Mondeo, Mazda 6 and Avensis wagons. Be sure to drive the diesel version though. Anorak not included.

keep the engine on the boil. Progress is effortless, unlike the alternative power plant, a 2L 4-cylinder petrol engine, which just can’t match the pulling power of this diesel. Hard to make a case for the petrol engine in this instance, especially when fuel economy is considered: 7.5l/100km for petrol vs. 5.6l/100km for diesel (put that in your log). The on-road behaviour is also very good; this is not a sports car despite what the aggressive appearance might suggest, but it is capable and comfortable, eating up the miles on a long haul or regular short commute. The suspension has been tuned for New Zealand conditions. It also looks great. Hyundai has made huge leaps with the appearance of its vehicles in recent years and no longer produces shapeless, bland cars. The i40 pulls off the sharp sportswagon look with aplomb.

A BIKE rack for SUVs and utes allows easy access to the vehicle’s interior without having to remove the bikes or rack, says designer and maker Best Bars Ltd. Designed for vehicles with a square hitch receiver towbar, the EziGrip Outrigger swings the rack and bikes away from the vehicle for access to the rear door or tailgate when the rack is in use. “It works better than any other bike rack system for these types of vehicles,” says Stephen de Kriek, chief executive of Best Bars Limited. “[It gives] full access to the rear of their vehicle while bikes remain securely fixed to the rack.” The Outrigger can carry four bikes. Other new products from the company include the Ezi-Grip Advantage 2-bike and 4-bike racks. The new EXiGrip Outrigger bike rack swings away to allow easy access to the rear of an SUV or ute.

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finance 23/07/12 1:26 PM

Rural News // september 4, 2012

58 rural trader

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

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

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Hewitts Motorcycles

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

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

Dwains Service Centre

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

Marlborough Trials Centre

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

Hubbards Machinery

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

Moto Shop

4 Chapel Street, Masterton 06 377 0443

VOTe YellOW!

mike@motoshop.co.nz

Hubbards Machinery

247 Alford Forest Rd, Ashburton 03 308 3539 ian@hubbardsmachinery.co.nz

hORSePOWeR CAN-AM COMMANdeR CAN-AM COMMANdeR kAWASAki TeRYX 750 YAMAhA RhiNO 700 hONdA BiG Red 675

Dwains Service Centre

7 Northumberland Street, Tapanui 03 204 8455

Blue Red Stewart Farming and Recreational GReeN Ltd 225-229 Hilton Highway, Timaru 03 688 7517 Can-Am, Commander stewartatv@vodafone.co.nz dwains@xtra.co.nz

The new option!

iNduSTRY eXC

™ duAl-leVel CA

13.1 FT. / 372 L oF voL g 600 pounDS oF STora 3

MotoSouth

173 Clyde Street, Invercargill 03 214 4482

from $19,274 ex GST Can-Am SSV Lineu

greg@motosouth.co.nz

Rural News // september 4, 2012

rural trader 59 Happy Birthday

Weatherstations, unusual gifts and science support for over 40 years...

CRAIGCO SENSOR JET DEAL TO FLY AND LICE • Cost Effective

To mark a birthday, retirement or any milestone, give that special someone, something special - a personal cartoon portrait by Edna cartoonist Malcolm Evans - $200 plus GST

• Complete Package • Unbeatable pricing

Send no money - just email a few up-to-date photos of subject, with a note of details you’d like included, to; malcolm@evanscartoons.com

The Met Shop .

FARM 4X4 Multi-Terrain Vehicle

MORE RANGE NEW AC MOTOR • Range up to 70km • Top speed 45kmh • Hi/low ratio • Quiet motion • Plug-in recharge • Low Maintenance Cost Demo from authorised dealers FROM

PLUS GST

NEW

P 06 835 6863 - www.craigcojetters.com

Phone: 04 384 7683 • Fax: 04 384 7689 Email: info@metshop.co.nz 5 Swan Lane (off Cuba Street) PO Box 9254, Wellington 6141 www.metshop.co.nz

Or post your inquiries to; M. Evans, 39J Cape Horn Road, Hillsborough, Auckland 1041 . and don’t forget to include your return address.

$6,590

• Performance Guaranteed

WE’RE ONLINE

The ultimate in paint protection

DAIRYCOAT

• Faster, easier wash up! • Non toxic, Hygenically approved • Long lasting finish • Withstands pressure hosing • Resists deterioration from daily use • Can be applied to walls and floors

Zero Turn Mowers

Made in NZ – 10 year guaranteed

SPECIAL ACRYLIC

FENCE RAIL BLACK Amazing cover

$ FREE DELIVERY LITRE www.enviropaints.co.nz 0800 50 ENVIRO (0800 50 368476)

• 22HP 42” / 27HP 48” • USA MADE / LOW NZ PRICE • FULL RANGE AVAILABLE

PER 10

0800 38 44 50

BE SAFE... FIT A QUADBAR

The award winning Australian Quadbar is now on over 250 farms in NZ and is saving lives and preventing injury daily. It is now made here and is a well proven crush protection device for quad bikes.

595

+GST delivered

For a Quadbar, call me, Stuart Davidson, owner of Quadbar NZ, on 021-182 8115. Email sales@quadbar.co.nz or for more info go to

www.quadbar.co.nz

061213C1825

14 Riverbank Rd, Otaki

STOP RATS NESTING IN HOMES, BUILDINGS, MACHINERY

• Pest Free puts 50Hz pulse along power cables • Rats and mice stress, dehydrate, exit • No harm to humans, pets, computers, etc. • Models to suit buildings/plant 200sq.m to 1000sq.m • NSW-made, patented, science proven • Used in ten countries • Two-year warranty • 100% 60-DAY MONEY-BACK GUARANTEE

Pest Free PRO for large homes, small offices & factories, etc to 400sq.m – STOP RATS with Pest Free $399.90 incl. GST Buy with confidence from authorised rural sales agent N + J Keating, and post. 70 Rimu Street, New Lynn, Auckland 0600. Tel. 09 833 1931 Pest Free Commercial (cell 021 230 1863); email keating@orcon.net.nz for dairy TWO WAYS TO ORDER/PAY: sheds, 1) POST: cheque to N. Keating telling us the product(s) you want, grain mills, plus your name, address and telephone number. 2) INTERNET: direct credit ASB 12 3039 0893559 00 factories, (your surname as reference) PLUS telephone or email us, etc – $1800 saying which product(s) you want. incl. GST + post.

Culvert Pipes New Zealand’s CHEAPEST Culvert Pipes! FREE joiners supplied on request.

ONE STOP WATER SHOP 300mm x 6 metre ................................ $410 400mm x 6 metre ................................ $515 500mm x 6 metre ................................ $690 600mm x 6 metre ................................ $925 800mm x 6 metre .............................. $1399 1000mm x 6 metre ............................ $2175 1200mm x 6 metre ............................ $3475 ALL PRICES INCLUDE G.S.T.

Pest Free Domestic for homes, garages, etc to 200sq,m – $159.90 incl. GST + post.

• Lightweight, easy to install • Made from polyethylene

McKee Plastics, Mahinui Street, Feilding Phone 06 323 4181 Fax 06 323 4183 McKee Plastics, 231 Kahikatea Drive, Hamilton. Ph 07 847 7788 sales@mckeeplastics.co.nz www.mckeeplastics.co.nz

Phone

0800 625 826

for your nearest stockist

Joiners supplied FREE with culvert pipes

ALL NEW MF7600 SERIES

AWARD WINNING TECHNOLOGY THAT SPEAKS FOR ITSELF

FINANCE FROM AND AVAILABLE FOR IMMEDIATE DELIVERY*

3.99%

FUEL EFFICIENT, EASY TO OPERATE – MAKES ANY JOB EASY. Machine of the Year 2012 Winner, Agritechnica, Germany Golden Tractor for Design award MF 7624 Dyna VT transmission 4 award-winning models from 185hp – 235hp Generation II SCR engine technology for more power efficiency and great fuel economy The best transmission choice for precision work in the most demanding applications – Select from: • Dyna-VT CVT • Dyna-6 Powershift Contact your local Massey Ferguson dealer for more information. is a worldwide brand of AGCO.

www.masseyferguson.co.nz | Freecall 0800 826 872 *3.99% Finance to approved AGCO Finance customers only. 30% minimum deposit, 36 monthly payments in arrears with GST paid in the fourth month. Machine to be installed by October 31, 2012. Offer ends September 30, 2012, while stocks last. Eligibility is subject to satisfying specific requirements which may vary. Conditions apply.