Rural News 18 Sept 2012 by Rural News Group

agribusiness profile

property maintenance

Challenging economic times are no barrier for Dougal Lamont. page 28

Hawkes Bay station owner enlists contractors for farm maintenance. page 46

RuralNEWS

animal health NZ’s first case of Border disease is no cause for alarm say vets.

page 41

to all farmers, for all farmers

september 18, 2012: Issue 523

www.ruralnews.co.nz

Minister steps in P E TE R BU R K E

PRIMARY INDUSTRIES minister David Carter has called for an urgent report from his officials on the fallout from Horizons Regional Council’s One Plan. The Environment Courts ‘interim’ decision on the One Plan has sparked nationwide outrage from farmers, who see this as a blueprint for what could happen in other regions. There have been calls for MPI to take an active role in making submissions to regional plans – such as One Plan – which they used to do in the days of MAF. Carter told Rural News he’d be concerned if decisions on One Plan had flow-on effects to work central government is doing through the Land and Water Forum (LAWF). “I would be unhappy, given all the work we are doing on water, to find the progress we have made was being gazumped by decisions by regional

councils around the country. This would include putting a stop to further intensification of land that can be justified environmentally.” There are fears that good relationships built up through LAWF between opposing parties are in danger of falling apart as a result of the One Plan decision. If that were to happen it could have serious consequences for the Government, hence Carter’s move to see whether MPI needs to take a more proactive role as an advocate for farming.

“There certainly appears to be dismay at the decision by the Environment Court and that is why I have called for a report from my ministry officials,” says Carter. Meanwhile the MPI’s director-general, Wayne McNee, has confirmed to Rural News that they are looking at the implications of the One Plan decision. In a brief statement, McNee says the focus of MPI is on maximising and increasing sustainable resource use and improving the productivity of

One farce! Manawatu mixed cropping farmer Hew Dalrymple says the Environment Court has shown a lack of respect for farmers’ views and its decision on the controversial One Plan is a “farce”. He believes the plan, as amended by the court, will make it harder for farmers like him to grow high value crops – further affecting the region’s economy. One Plan fallout pages 4 & 5

the farming sector. He says MPI – and the Ministry for the Environment – are looking at a range of issues on fresh water quality, allocation, science and monitoring. McNee says this relates to creating a regulatory framework for water. “One aspect of this is identifying roadblocks to developing water storage and reliable irrigation – viewed as key drivers of the primary sector’s economic performance – while maintaining high environmental standards.”

RUC protest brings result P ET ER BUR K E

THE MINISTERS of transport and primary industries are seeking a solution to complaints by a Canterbury agricultural contractor (Rural News, September 4) about new rules on road user charges. Robert McCarthy hit out at suggestions by Transport Minister Gerry Brownlee that it wasn’t difficult for contractors to install GPS on their tractors if they wanted to travel more than 40km/h on the open road. McCarthy said this was simply not possible and very costly. David Carter says he has talked to Brownlee about McCarthy’s situation and Brownlee now recognises that there is an issue. “I have spoken to Robert McCarthy again and advised him that Mr Brownlee will have his officials personally meet with him to try to find a solution. I believe there is a genuine serious problem that needs to be addressed. It’s not my specific area as the minister for primary industries, but I have taken the opportunity of raising it directly with Gerry Brownlee and have received a fair hearing.” Carter says until a permanent solution is found he has told McCarthy it is best he drives his tractors under 40km/h on open roads. More on RUC page 6

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Rural News // september 18, 2012

issue 523

www.ruralnews.co.nz

News �� 1-17 World �� 18-19 Agribusiness �� 20-21 Markets �� 22-23 Hound, Edna �� 24 Contacts �� 25 Opinion �� 24-27 Management �� 31-40 Animal Health �� 41-45 Machinery and Products �� 46-53 Rural Trader �� 54-55 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

news 3

New biosecurity laws passed pa m t ipa

BIOSECURITY HAD been used as a “political football”, including by some industry leaders, Minister for Primary Industries David Carter has told Parliament. He was speaking in the debate before the Biosecurity Law Reform Bill was passed. The bill makes a wide range of amendments to the current Biosecurity Act, along with related amendments to four other acts. Carter said in the parliamentary debate that he acknowledged the genuine concerns of growers, farmers and producers about the New Zealand biosecurity system.

However, he was disappointed about biosecurity being used as a political football by some politicians and industry leaders. He hoped the passing of the bill, with good cross-party support, would bring about “more constructive engagement”. Labour party primary industries spokesman Damien O’Conner said Labour supported – and in fact had initiated – most of the provisions of the bill. But he was concerned that it came at a time when the Government was slashing about 90 staff at Biosecurity New Zealand. Labour was also concerned at the self-regulation aspects of the bill, as there were “real dangers” when indus-

tries were put under pressure to cut corners, he said. Carter later outlined, in a statement, that New Zealand’s biosecurity was world-leading, but the legislation has not kept pace with the way the system has had to evolve. “The amended act covers the areas of border biosecurity, joint decisionmaking on newly detected harmful organisms and ongoing management of established pests,” he says. “The reforms will enable better use of information to target risks and encourage partnerships in the management of potential

World grain prices up a n drew swa llow

FEED PRICES are creeping up as a steep rise in international grain markets filters through to New Zealand. Despite limited domestic demand and a strong New Zealand dollar, palm kernel has crept up to at least $320/t ex store and barley $375/t ex farm in the central South Island. “The rise in grain prices in international markets has prompted people to look at other options which has lead to stronger demand for palm kernel from Europe than normal, and that’s driving prices up,” Mike Borrie, business manager for RD1 supplier INL, told Rural News.

Meanwhile on the supply side, crush margins on palm oil are low due to weak economic growth in Europe and the US, so crush volumes and consequent supply of palm kernel expeller meal are lower than normal. “It’s nothing to do with New Zealand but there’s certainly upward pressure there.” For farmers who know they’ll need PKE later in the season, Borrie suggests “have a bob each way” by booking a proportion of that tonnage now. “Where our price goes will be highly dependent on palm oil prices. It they don’t increase then supply will remain tight and grain doesn’t look like it’s going to ease either.

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“The biggest impact on demand here will be the type of late spring and early summer we get. “We’re in a purple patch with grass at the moment and the PK price is high so people are reluctant to contract but if it does go dry, and goes dry relatively quickly, there’s going to be an issue with continuity of supply.” Meanwhile grain traders in the South Island say little new business is being done as good grass growth has dampened spot demand. Fonterra’s downward payout revision and ample supplies of conserved forage from last season are other factors.

David Carter

biosecurity incursions.” Carter says a key plank of the reforms is developing governmentindustry agreements on preparing for, and responding to, newly detected pests and diseases, and for sharing the costs of jointly-agreed activities.

Growers reassured AN E-MAIL assurance from Biodiesel New Zealand that contracts for this season’s crop will be honoured by parent Solid Energy – regardless of the outcome of the restructure and sale of the biodiesel business – has been welcomed by growers’ group chairman, Jeremy Talbot. However, discovery that management of the company, among others, is in negotiations to buy the business have left him questioning when the decision to sell was made and where it was advertised. “We sowed our crops on the back of an assurance we were given in April that Solid Energy were in this for the long-haul. Yes, they were looking for a partner, and we had no problem with that, but it now looks like the decision to exit was made as long ago as last year,” Talbot says. “Either management weren’t aware of the board’s intention or something else has changed. We asked for a meeting with the chairman of the [Solid Energy] board and chief executive Don Elder at the time so we could get all the facts, first hand, but were denied a meeting.

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Rural News // september 18, 2012

4 news

New plan opens old wounds P E TE R BU R K E

IT’S HIGHLY likely the Manawatu/Wanganui Regional Council’s controversial One Plan will end up in the High Court. The local farming community – sheep and beef, dairying and horticulture – are enraged by some of the decisions announced recently by the Environment Court. They claim some of the new rules will force farmers off their land, increase compliance costs and harm the economy of the region. Rural organisations have met

with urgency to determine action. A farmers’ fighting fund is being set up to appeal the Environment Court decision, and normally moderate farming leaders have been scathing of the court decisions. They also strongly criticize the role of DOC and Fish and Game. The One Plan has attracted national interest because of its radical nature and the fact the decisions it embodies are likely to be picked up and implemented by other regional councils

monitoring the outcome. That’s why the parties to it, such as Federated Farmers, Fonterra, Horticulture

final shape of One Plan. Their decisions generally pleased farming groups, but DOC and Fish and

“Where were all the other government departments? Where was MPI? They didn’t even put a submission in”. – Andrew Hoggard New Zealand, as well as DOC and Fish and Game, have taken such interest. Horizons Regional Council last year retained independent commissioners to determine the

Game – chiefly – opposed this outcome, hence the appeal to the Environment Court, which has gone against farmers, opening old wounds and reigniting animosity. Some farm-

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Fed Farmers’ Andrew Hoggard says the Environment Court decision turned One Plan into something that will be bad for the entire region.

ers describe the process as ‘government departments against farmers’. Hew Dalrymple, a mixed cropping farmer in Manawatu and deputy chairman of Federated Farmers’ grain and seed group, says the court has shown a lack of respect for farmers’ views and taken a decision which is a “farce”. What the original commissioners did with the One Plan was reasonable, but the court seems to suggest farmers need to be ‘greener’, he says. “New Zealand farmers have used the available science to farm in an environmentally sensitive way. There are exceptions to the rule, but we don’t need

to legislate for one percent of the population to the extent we are. [The court] has got it wrong,” he says. He is still working out the exact impact on his own farming operation, but says at first glance it appears the plan, as amended by the court, will make it harder for farmers like him to grow high value crops, further affecting the region’s economy. Dalrymple says the court based its decisions on appalling information and showed no interest in cross examining his and others farmers’ evidence. He also strongly criticises DOC, whose people make submissions paid for by the taxpayer, “so we are

paying for their time and lawyers to present against us.” “They get their salaries every week and they have only one thing on their mind: that we need to make the rivers healthier. Maybe we do, but not their way and not in their timeframe. It seems the court listened more to their views than to farmers’. The least listened-to and the most affected were the farmers.” Dalrymple says like many farming leaders he’s afraid that unless One Plan is appealed it’ll set a precedent for similar regulations around the country. “I have some real fears for the future.”

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Rural News // september 18, 2012

news 5 We’re in the same game claims DOC P E TE R BU R K E

DOC BOSS Al Morrison is rejecting criticism of his department as ‘anti farming’. Farmers are scathingly criticising DOC following a decision by the Environment Court on Horizons Regional Council One Plan, lambasted as being harmful to farming. The farmers claim DOC’s appeal to the Environment Court is partly to blame for this outcome.

Morrison is satisfied with DOC’s involvement in the One Plan and says this sort of advocacy is a statutory role of the department. But Morrison told Rural News his department is in the “same game” as farmers and is “pro sustainable farming”. “It is not our role to advocate so that farmers are disadvantaged. Our role is exactly the same as farmers: to see our natural resources used sustainably and make sure they are there so everybody can use them into the future. “Saving the kiwi in the natural environment is simply an indicator of what we all want, which is a healthy, functioning environment where the water quality and quantity is sufficient for this country to prosper.” Morrison is satisfied with DOC’s involvement in the One Plan and says this sort of advocacy is a statutory role of the department. DOC sat down with other parties and tried to reach agreement in mediation, but this didn’t work in all cases, he says. “Sometime you can’t do that because the issues are just so fraught and that’s what the court is for. The [Environment] Court made a decision, the department accepts that decision and won’t appeal and I think everybody should accept it and get on with it.” Morrison says claims by farmers that DOC isn’t concerned about the economic impacts of its advocacy are wrong. “Why has it suddenly become a crime in this country to be green?” he asks. “What’s wrong with green? I thought green meant you used a resource wisely and sustainably so present and future generations could profit from it and make sure the New Zealand brand has integrity.” Morrison believes DOC is working positively with farmers. “We have seconded one of our staff to Fonterra, at their request, to help with their biodiversity programme. We are not working against farmers, we are working with them.” Morrison says if the water problem in New Zealand is not solved nobody will be able to be pro farming. “We need to grow this economy in a sustainable way and not go backwards. If we don’t do something about our water problem we will go backwards.”

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Water worries spreading FARMER CONCERNS about regional councils’ water management intentions are spreading around the country. Federated Farmers claims that unless changed, the proposed Canterbury Land & Water Regional Plan (LWRP) could see sheep farmers declined resource consent. “A radical feature of Canterbury’s proposed Land and Water Regional Plan is consent to farm under nutrient discharge rules,” says Chris Allen, Federated Farmers Mid-Canterbury provincial president. “The big problem for any farmer, forester, wine maker or market gardener, revolves around incredibly tight tolerances for land use change. Most farmers, like me, will not have nitrogen leaching conditions on a water consent because sheep farmers tend to be dry land [farmers].” He says the practical impact means a good lambing may increase stock by just a few animals, but

when run through the nutrient management tool Overseer it may say his nitrogen loss has increased 10% and that will trigger an uncertain resource consent process. “As large parts of Canterbury are defined as ‘red zones,’ we know

the proposed default decision on land use change will be to decline. So that leaves me with two stark choices: either we carry less stock, underperforming productively and commercially, or be forced to dispose of lambs to remain

Overseer review THE FOUNDATION of Arable Research has initiated a peer review of the Overseer nutrient budget model because of the way regional councils across the country are proposing to use it to assess nutrient losses. “Overseer looks like becoming a significant regulatory tool applied across New Zealand, not just Canterbury,” FAR director of research development, Roger Williams, told Rural News. Given the model was not designed for that purpose, and was originally developed for rain-fed pasture, there are concerns about its suitability, particularly in irrigated and/or cropped situations, says Williams. “To the best of our knowledge, there has been no peer review of that.” The review team of ten includes two overseas nutrient management experts in an attempt to ensure some impartiality in the process, given, as Williams puts it.

compliant.” He says while existing farming activities will be permitted for five years it is all subject to recording nitrogen losses in Overseer. “I have real concerns about making Overseer central to the regulatory process. It has severe limitations which must be acknowledged in the plan.” Allen says 10% is wafer thin for sheep farmers. “Consent to farm will substantially limit land use change and better farming practices. Such rigid rules risk either freezing farming practice in time or spurring radical high-input indoor farming. We need to get a message out there that any land-based agricultural and horticultural use is impacted by the LWRP.” He says it is vital for farmers to read the plan, identify matters of concern and submit. “Our goal is a workable plan that balances the environment with the economic wellbeing,” Allen concluded.

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Rural News // september 18, 2012

6 news

Deer sector hit hard by RUC changes AN D REW SWALLOW

DEER TRANSPORT operators, and consequently their customers, face a leap in costs due to the new road user charge (RUC) system. New RUCs came into force on August 1, extracting higher payments from nearly all truckers except

those operating H-rated vehicles. Those carrying light goods are particularly hard hit. “We’ve worked out for our company, if we carried on operating as we are, it would cost us an extra $150,000 a year,” Kris Orange, of Downlands Deer, told Rural News. That’s across just 10

trucks. Orange estimates about 30% of the entire road transport fleet will be similarly penalised under the new system. “Effectively we’re subsidising anyone who’s moving things that are heavy. We’re virtually having to pay twice what we used to for no benefit.” The changes run

against user-pays principles and risk driving loads onto trucks with fewer axles, rather than more, he adds. “In the past the more axles you had, the less you’d pay. Now it comes down to what that trailer is rated to. If it is built to carry 25t, then you pay for 25t, whether you’re using

it for that weight or not. Unfortunately it means where we can’t change the configuration of the trucks – such as for sire stags and trophy stags – we’re going to have to increase our prices quite considerably.” For regular stock, switching to double-deck crates will allow loads to come closer to the RUC

RUC changes mean transporters of goods such as deer, which cannot be loaded to a truck’s max weight, face massive cost increasees, says Kris Orange, Downlands Deer.

carrying capacity weights, but only if the customer has sufficient stock to be moved. It also means the company must have more crates – single deck for specialist use and double-deck for big loads – requiring more capital, another cost to be recovered. “It’s been a bugbear of mine for 18 months but no-one wanted to know,” says Orange. That’s echoed by Road Transport Association general manager Dennis Robertson. “The Road Transport Forum put in a consultation response on this months ago but it seems [the Ministry of Transport] has chosen not to look at it.” Robertson says it’s almost as if the policy was designed to meet the funding requirements without trying to understand what the industry does. “There are some good parts and some absolutely atrocious parts.” Some, such as a rule which would have prevented 40-foot containers being loaded to capacity if they were to be transported by road, have now been overcome, but others, such as the light goods issue, are still outstanding, he says. “It is quite difficult because it’s very load-specific and industry-specific.”

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The ministry told Rural News submissions to nominate a permanent weight that would be lower than the vehicle’s normal capacity were received during consultation but were not adopted “as it would have reintroduced some of the evasion and enforcement issues in the old system.” “While the new system will affect operators differently, it is a fair system because similar vehicles pay similar charges and heavy vehicles as a group will keep paying the same amount as previously to cover the cost of the road damage they are responsible for. “In some situations operators will find that a different type of vehicle will be more cost-effective under the new system. However, operators carrying heavy loads will still pay less RUC if they use vehicles with more axles.” The ministry maintains nobody will pay more than the average paid for the same trucks under the old system, plus the 4.1% revenue increase that matches the 2c/L increase in petrol excise that also took effect on August 1. It says the ministry and the NZ Transport Agency will monitor the new system and begin a full evaluation of it within the first year.

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WITH THE largest fleet of trucks in the country – just over 500 – Fonterra says there’s been “a slight increase” in its RUC bill. But “it’s nothing we’re concerned about,” Fonterra general manager transport and logistics, Barry McColl, told Rural News. “We’ve worked closely with the NZTA on the changes to [RUCs] and we’ve made a few adjustments.”

Rural News // september 18, 2012

news 7 Australian spud protest a dud PA M T IPA

AUSTRALIAN GROWERS’ protests over New Zealand spuds are a load of “shite” says a Potatoes NZ spokesman. The 9000-strong Australian growers’ organisation – AusVeg – is campaigning against a proposal to lift a 24-year import ban on New Zealand potatoes. But the only time New Zealand has ever exported potatoes to Australia in the last half century is when the Aussies have asked for them. Potatoes NZ business manager Ron Gall says they aren’t overly concerned about the protests because any possible exports to Australia would be worth “b**** all”. “If it happens it will be great, but it will be for a spot market to meet a market need, not for everyday export growth,” says Gall. “Maybe 10-15 years down the track when they get used to the idea then we might ask for fresh potatoes for retail… and that could take 84 years like apples.” Gall says Potatoes NZ began the application process in about 2006 and the Department of Agriculture Fisheries and Forestry (DAFF), the Australian equivalent of the Ministry for Primary Indus-

tries, has recommended it be approved. The Australian industry had to respond by September 3 with sciencebased submissions. “I presume they have done – we will see what the DAFF response is and take it from there. “[AusVeg] are playing a great political game and until I see the science-based submission they can say all sorts of things publicly – what they have said publicly is a load of ‘shite’ – but it depends what their submission says.” The Australian growers are protesting about the bacteria liberibacter in New Zealand spuds. “But the bacteria does not spread unless you have the insect and they don’t have the insect,” says Gall. But even if we win Gall says “nobody is actually going to import potatoes from New Zealand for processing in a factory in Australia if they can get potatoes from Australia. “What we are putting in place is the ability for Australian processors to source their potatoes from New Zealand if they have no supply because of drought or floods or whatever. We have exported to Australia a few times in the last 40-50 years and it has always been at the request of the Australians.”

‘Lamestream’ media view AN D REW SWALLOW

MAINSTREAM MEDIA’S increasing reporting on farming’s alternative production practices is giving the public an incorrect impression of the future for farming, says a leading agricultural academic. “The bulk of farmers are conventional and doing their best for the economy yet all the programmes and media are focussing on the alternative stuff,” Jacqueline Rowarth told Rural News. Two recent examples were the September 8 Country Calendar programme and the September 12 rural news bulletin on Radio NZ. “We were told [on Radio NZ] that essential oils spread on pasture increase production something like 26% and that they’re curing Psa in kiwifruit in Italy, so why aren’t we using them in New Zealand?” Rowarth, professor of agribusiness at Waikato University and president of the New Zealand Grassland Associ-

ation, says the answer’s simple: “Zespri has tested about 500 such alternative products with no consistent positive effect.” She says the problem is that lay viewers, readers or listeners are left with a negative impression of conventional techniques, and are asking why the whole industry is not adopting the alternatives. Rowarth raises her concerns Jacqueline Rowarth in the Grassland Association’s of Internal Medicine, concludes: September newsletter. “There are choices to be made “The published literature lacks about production systems, but on- strong evidence that organic foods going media promotion of ‘natural are significantly more nutritious than and organic’ is preventing society conventional foods. Consumption of from understanding the real issues,” organic foods may reduce exposure to pesticide residues and antibioticshe writes. Meanwhile a study by Stanford resistant bacteria.” Organic advocates latched onto University in the US has re-ignited the the latter part of that conclusion, even organic debate the world over. Following a review of 237 research though the paper also notes residues papers on organic versus conven- and bacteria loadings in conventional tional produce, the Stanford work, produce are nearly always within regpublished this month in the Annals ulated limits.

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Rural News // september 18, 2012

news 9 Long time for European recovery

Crafar deal by Christmas? PETER BURKE

PETER BURKE

Ngati Rereahu Trusts – Tiroa E and Te Hape B are challenging the Appeal Court decision which gave the green light to the sale. areas as business acumen, and the privilege of ownership of sensitive farmland in the country. We don’t think the law has been properly applied and accordingly we have

Hardie Pene, the chairman of the two trusts, is unrepentant about taking this latest step. “We believe we have been hard-done-by, that’s why they’ve lodged the

decided to appeal it.” Pene says he believes their case is sound and has merit though some people may disagree. “But we will certainly challenge the earlier decision.” Pene says he personally has no problem with the Chinese, but simply doesn’t believe the law has been properly applied. He says Ngati Rereahu has received some outside financial assistance to lodge their appeal which could end up being very costly. He won’t identify the benefactor. Meanwhile a spokesperson for Shanghai Pengxin, Cedric

Allen, says they are naturally disappointed at the appeal being lodged, but says the iwi group is quite entitled to exercise their legal rights. But Allen says this latest delay will not force Shanghai Pengxin to pull out of the deal. “We’ve been in this too long to pull out. We don’t think the appeal will succeed, but we’ll just wait.” Landcorp chief executive Chris Kelly says as a result of the appeal being lodged they have postponed their due diligence on the farms and are awaiting developments.

ST OU Y

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A GENERATION of consumers in Europe will not see prosperity, says the chairman of Beef + Lamb NZ, Mike Petersen. Speaking at a recent field day in Southern Hawkes Bay, Petersen told farmers the economic crisis in Europe has obvious implications for New Zealand. The present generation of consumers face austerity and paying off debt incurred by their governments. “That’s going to have a big impact in Europe for at least 25 years and will have an impact on New Zealand because we’re trying to sell products into Europe. People not well off and not confident about their future are less likely to spend money on the products we send into that market.” While most New Zealand meat is aimed at the ‘high end’ of the market, Petersen says even wealthy people will think twice about buying products if the prices get too high. New Zealand is still not filling its lamb quota to Europe and has found other markets in emerging economies in South America and Asia where there are new opportunities. But it’s not all bad news from Europe. Petersen says the farmer share of the retail price of lamb now sits at about 50%, much better than the 25% of some years ago, but down on last season’s record 65%.

IT WILL be at least two months, probably longer, before the sale of the Crafar farms is settled one way or the other. Such will be the result of the lodging of the appeal to the Supreme Court by two Ngati Rereahu Trusts – Tiroa E and Te Hape B. They are challenging the Appeal Court decision which gave the green light to the sale. Sir Michael Fay was a part of that appeal, but is not part of the latest legal action. Ngati Rereahu has

appeal. The judge [at the earlier hearing] did not look at all the evidence placed before the court – such

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MIKE PETERSEN expects beef prices in the US to improve early in the New Year. The effects of widespread drought there have people guessing what might happen, he says. Many beef animals are now being slaughtered, depressing prices short term. “The drought is so extensive it’s almost the equivalent of the dust-bowl era of the 1930s. This in itself is significant, but the effect of the drought is not just confined to cattle and livestock; the cropping side is also affected. Grain prices have risen, making the feedlot sector really uncompetitive.” Petersen believes about 100,000 more cows have been kept in milk in New Zealand this season and many of their calves will become part of the beef industry – good news for New Zealand in 2013 when US beef prices are expected to rise.

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Rural News // september 18, 2012

10 news

Temporary farm staff are not a permanent answer pa m t i pa

TEMPORARY MIGRANT workers will not meet the need for the educated, skilled workforce farming needs in the future, says DairyNZ senior economist Matthew Newman. The dairy industry alone requires another 10,000 employees by 2025, Newman says. A survey of 150 dairy farms showed about 25% of workers in Canterbury and about 10% in Waikato were on temporary visas. “But think about the need to improve skills; sure temporarily we need to improve [migrant workers’] skills so they can milk the cows and perform

on the farm. But what is the motivation for really improving them long-term if you’re a manager?” Newman posed the question during a Beef+Lamb NZ meeting at Warkworth on the future of New Zealand agriculture where he and B+LNZ director James Parsons independently pushed the need for improved business skills on-farm. “All surveys indicate the financials are the biggest link to profit differentials between farms,” Newman says. “It is not about cows or grass; it’s the financials.” Parsons says B+L has also been drilling into what made top performers in profitability.

While it is assumed they are the intensive finishers, those with no debt or the top traders, that is not the case. Often they are more indebted than others. “They are the very good business people. They don’t go chasing rainbows; they match the right stock class with the land and they do a very good job of it,” Parson says. Both Parsons and Newman say a 6% or greater unemployment rate provides a big pool of potential farm labour but they questioned whether the motivation was there. “The industry needs to attract the best people, and that is not easy,” says Newman. “People capa-

bility is crucial and we need to improve our skills, not just on farm but right throughout the industry.” Education will be crucial for those 30 and under, and farms may have to look at labour equity to attract motivated people. “Do we really incentivise our labour to work well for us as farm owners? Are we going to have to look at some sort of labour equity component? It will certainly keep them on the farm longer and give them motivation to work hard.” Better business and management skills, such as reporting to the board and contract negotiations, were needed with bigger farms and changing capital structures.

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news 11

Time right for retiring councillor su d es h k i ssun

RETIRING FONTERRA shareholder councillor Stephen Silcock says the time is right to step down from the role. The Morrinsville farmer, a councillor since Fonterra’s inception in 2001, says his decision has nothing to do with the TAF (trading among farmers) controversy that dogged the co-op for the past few years. Silcock told Rural News he supports TAF. “If TAF is introduced as planned – and I hope it is, as I am a proponent – the role of council will need to adapt to the different environment. Therefore, I believe it’s an ideal time for someone to come into council at this time to be part of that process. My decision to retire is also linked to the fact I am looking for more time to devote to my personal and farming interests.” Silcock is one of five

shareholder councillors retiring in December. The others are Desiree Reid, southern Canterbury; Mark Croucher, Whangarei; Brian Power, Eastern Bay of Plenty; and Philip van der Bijl, western Southland. Silcock says he found his 11 years service to the council rewarding and enjoyable. “I am thankful to Fonterra farmers in the Morrinsville area for providing me the privilege to represent them on the council.” Silcock says Fonterra has been successful over the last 10 years. And with a permanent capital base he is convinced many opportunities in global dairy markets give Fonterra the chance to do even better. “It will still need world-class governance and management to achieve this. But with the anticipated growth in consumption of dairy products there will be huge opportunities to extend

Competition for Fonterra seats THREE FONTERRA board seats will be vacated. Fonterra directors John Wilson and Nicola Shadbolt retire by rotation, in accordance with the constitution, and are eligible for re-election. There is also one board vacancy, triggered by the resignation of Colin Armer. Candidates for the directors’ election will be announced by the returning officer on October 15 following the completion of the candidate assessment panel process. An election will also be held for the directors’ remuneration committee. Its two members – Murray King and Rodney Wilson – will retire by rotation and seek re-election. Nomination papers and candidate handbooks can be obtained via the election hotline, free-phone 0508 666 446 or email elections@electionz.com

in brief farm sales up FARM SALES were up 44.7% in the year to August compared to the same period last year, Real Institute of New Zealand’s latest figures show. Fifty three more farms sold during the three months ending in August than in the same period in 2011, an increase of 20%. The median price per hectare for all farms sold in the same three months was $17,955, an 18.5% increase on the $15,148 recorded for three months ended August 2011. “The early spring, with strong pasture growth and good early production, is providing a platform for farm sales during spring,” says REINZ rural market spokesman Brian Peacocke. “Despite the reduction in the dairy payout the market is seeing solid enquiry for dairy farms, and continued interest in sheep and beef properties driven by expectations of a recovery in commodity prices.”

what we do now and to further use our capabilities to grow returns to Fonterra farmers.” Nominations opened September 10 for the 2012 Fonterra elections. Shareholders council elections are being held in 12 wards due to councillors retiring by rotation. Elections in two wards –

southern Northland and Morrinsville – are due to casual vacancies. Eight of the retiring councillors are seeking reelection: Bill Millar, South Auckland; Neil McLean, Hamilton; Murray Linton, Western Bay of Plenty; Kevin Ferris, Te Awamutu; Kevin Turnbull, Northern Taranaki; Shona Glent-

worth, Egmont Plains; Sandra Cordell, Hawke’s Bay; and Evan Baigent, Tasman-Marlborough. Nominations close September 28.

Fonterra shareholder councillor Stephen Silcock is stepping down after 11 years.

Rural News // september 18, 2012

12 news

Farmers should do due diligence – Peterson p e te r bu r k e

FARMERS SHOULD do comprehensive due diligence before deciding which meat processing company to sell stock to, says Beef + Lamb New

Zealand. Chairman Mike Petersen told Rural News the average farmer annually sends at least $1 million of livestock to slaughter without enough serious attention to the

sale process. “They often do it on a whim based on whether they like or dislike the livestock drafter. “But it’s important they do some research to understand and have

a good knowledge of the meat company they’re doing business with. Are they operating on the philosophy you believe in? Will they create long-term value for your product in the market? Is this the

partnership you want and will it grow returns for your farming business? “This is an important piece of work to do.” Mike Petersen says the average farmer does not pay enough attention to the sales process around livestock.

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Meanwhile, Petersen says though most aspects of the RMSS (red meat sector strategy) are ticking over reasonably well, problems exist in ‘aligned procurement’, caused by a shortage of sheep at the farmgate and overcapacity in processing. He says the present, highly competitive situation is “unhealthy” for the industry and that in some instances companies have possibly paid too much for stock simply to keep their chains running and meet the demands of customers. But there had been some good examples of contracts throughout last season, benefiting farmers and companies. Despite fierce competition, the so-called ‘Sunday auction’ is largely

a myth, Petersen says. “There is a proportion of farmers who do operate on a ‘Sunday auction’ basis. But reports indicate that in reality three-quarters of farmers do commit to one company for a season, or a species of stock to a company for a season at least. But there are still a number of animals not committed.” Petersen says there should be rewards for “committed supply”, applying not only to an annual commitment but also to the timing of stock readiness. This would also benefit companies because they could then guarantee commitments to customers. Overall, Petersen to date rates the success of the RMSS as six or seven out of ten.

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LOCAL GOVERNMENT Minister David Carter says criticism of a decision to re-appoint commissioners to Environment Canterbury has been “muted”. The commissioners, installed in 2010, could now be there until 2016. Carter says the effects of the Canterbury earthquakes and the need to continue the progress on water management in the region are the main reasons for retaining the commissioners. Farmers have commented positively on the move, as have most local body politicians he’s spoken to. “The only criticism I have noted would be from the Labour Party, former ECAN councilors Eugenie Sage and Kerry Burke, and former mayor of Christchurch Garry Moore. “The reports back from a significant number of stakeholders in Canterbury are that the commissioners have tided things up. But there was concern that if we did return to a democratically elected council as before, we’d risked undoing all the good work of the commissioners over the last two years,” he says. Carter says there is a wider issue of competency in local councils, at staff and elected levels; councils are complex businesses and things go wrong as seen recently at Kaipara. “It is my wish as minister that local democracy works. I get no satisfaction from having to intervene or interfere with local democracy, but if it’s not working, clearly central government has to step in and for very good reason.”

Rural News // september 18, 2012

news 13

Time for an end to the ‘one night stands’ – farm leader pa m ti pa

SENDING STOCK to auction as a breeder is a bit like a one-night stand, Beef + Lamb director James Parson says. “It looks great at the time but there’s not much chance of repeat business.” This is what he told a Beef + Lamb field day ‘NZ Agriculture – Where to from here?’ at Warkworth, north of Auckland earlier this month. Parsons touched on the disadvantages of auctions as part of wider criticism of the complexity of supply chains for beef and sheep. In these markets many supply chains start with the breeder selling to an agent who auctions to a finisher, then on to a works agent, then a processor. All our stock is processed:, 95% of lamb and 85% of beef being exported. It goes to an importer in another country, gets processed again to retail-ready then on to retailers

and consumers. “There are lots of points of ownership, lots of information has to change hands and that’s pretty complex.” It ends up with Chinese whispers and the farmer getting a “distorted message as to what the consumer is actually thinking. This is a challenge for meat and fibre supply chains: how do you reduce the complexity to get more transparent and faster information flows?” Putting stock through auction, ‘commodifys’ the product even more. “For me as a breeder, let’s say I’m selling some store stock to a finisher and I send it down to the local saleyard, there’s absolutely so relationship between myself and the finisher. The relationship starts before the hammer and then it’s over. So the chance of repeat business is very low…. “An auction distorts that information flow even more. Instead of a rela-

‘Beef in a good space’ USUALLY WHEN there’s a drought in the US it floods the market with beef; but it won’t be this time, says Beef + Lamb NZ director James Parsons. “The US beef herd is already at a 50-year low because they had drought last year…. This drought comes along and whacks them again. So if you are a US cattle producer at the moment you are probably not too excited about things.” Parsons says most beef around the world is finished on grain so the drought will have a big effect. The US has 27 million of their 100 million cattle on feedlots. “But this is really going to make those feedlots hurt. The price of corn is going to go through the roof.” Parsons says many of the calves in the US beef herd are bred in Texas which last year “got nailed” by drought. Those cattle were then shifted up to the Midwest corn belt, e.g. Kansas, Nebraska and Iowa, which are being nailed this time. He understands the price of pork will drop because those farmers will kill their stock; the pork herd is not at a 50-year low. “That may put some pressure on some of the proteins but once you ride through that… in respect of beef you will be a in a good space.” Beef + Lamb NZ is predicting a rise to 417c/kg for bulls this season, with beef looking strong going forward. Other predictions include: Export lamb $95 on average; mutton $76 average; wool 412c clean.

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tionship with a finisher where I can start tailoring my genetic selection as a breeder to what that finisher wants, then feeding through to what exactly the market requires, the auction blocks that.

“I am not bagging auctions; I think there is a place for them [because] you do need some price discovery. But if we want to start developing more niche products and creating value chains, an auc-

tion doesn’t fit in that structure.” Parson, who studied supply chains overseas on a Nuffield scholarship, says to reduce complexity you reduce the number to page 14

From left, B+L NZ director and Northland beef and sheep farmer James Parsons , with John Barnett from Bayleys and and Matt Newman, DairyNZ senior economist at the Warkworth update.

Rural News // september 18, 2012

14 news

No legal action over Psa PAM TIPA

NEW ZEALAND Kiwifruit Growers Inc (NZKGI) will not be taking legal action against MPI over Psa. The grower organisation sought legal advice after the independently commissioned Sapere report released in July

found failings in the ministry’s biosecurity practices. But NZKGI president Neil Trebilco says initial advice is there’s no basis for civil suit on behalf of growers. Although the Sapere report identified failings, there was little to prove that Psa was the direct result of the

MPI omissions. “It’s that burden of proof that is it difficult,” he says. That is also evident in the Commerce Commission ruling on Kiwi Pollen (NZ) Ltd, he says. The commission warned – but chose not to prosecute – kiwifruit pollen supplier Kiwi Pollen (NZ)

for potentially misleading its customers about where some of its pollen was from. The commission alleges Kiwi Pollen was in breach of the Fair Trading Act, which prohibits false or misleading claims about the place of origin of goods.

Kate Morrison, the commission’s general manager of competition, says that though most of Kiwi Pollen’s product was sourced from New Zealand during that time, Kiwi Pollen did not tell its customers when it was also selling them imported pollen. “In fact Kiwi Pol-

len’s website continued to give the impression all of its pollen was collected from properties in New Zealand.” But the commission says it found no conclusive evidence that imported pollen sold by Kiwi Pollen caused Psa outbreak in New Zealand. Trebilco says the commission’s ruling was “not too surprising” given how difficult it is to prove how Psa got into New Zealand. Meanwhile NZKGI is still talking to the Government, MPI and the Ministry of Social Development about possible help for growers on the breadline under the “adverse event”

provisions. “That decision hasn’t been made yet; we are currently surveying growers and their financial needs and those that are most affected. “The payment (similar to a benefit) is called the rural assistance payment which means growers who have no income can work their orchard and be able to put food on the table.” Inland Revenue has also made some concessions on the Income Equalisation Scheme and the original $25 million grant from government has not yet all been spent. “We are hopeful that will enable us to continue to fight Psa.”

Growers will not be taking legal action against MPI for allowing Psa into New Zealand.

One night stands from page 13

of players in the chain. He showed a graph of a linear supply chain model of a grower, processor/ category manager, retailer and then the consumer. Another graph showed grower, processor and retailer all intersecting – hard to achieve, but it has been very successful. Referring to the graph, he says where an overlap occurs you have a relationship and sharing of information. “More and more the retailers and meat companies and groups of farmers are saying we need to form this kind of value chain structure so we are all sharing the same information. “There needs to be a high level of trust in this kind of structure – good transparency – and the ability of that value chain to start co-innovating and creating points of difference over the complex supply chains…. It is not

easy to create: the challenge is that one of those players will often have a lot more market power than the others and then says, ‘we like [that] but this is the price you are getting’.” Said Parsons, “We can stick with the old model and not have any trust and have what we have always had. But there needs to be a certain amount of give somewhere. We need to start building relationships with meat companies. A lot of the meat industry people agree something needs to change but the current structure is still driving behaviour.” But Parsons says value chain changes will produce no greater profits for producers unless they can protect their point of difference. A conclusion of his Nuffield study was “you still need to go into it with a good stick and make sure you can negotiate your terms well”.

Rural News // september 18, 2012

news 15

Cowboy traders riding into sunset SU DES H KI SSUN

COWBOY TRADERS in the China infant formula market are a short-term phenomenon, says dairy analyst Tim Morris. He says Chinese authorities are getting their act together and working towards stringent rules similar to those in US and Europe where cowboy traders have no chance of success. His comments come as infant formula exports to China face growing scrutiny. MPI is investigating

whether proper procedures for such products are being followed. And the marketing tactics of some importers in China are causing concern for authorities and exporters here. Morris, director of Auckland firm Coriolis, believes these issues will play themselves out. China’s fascination for branded infant formula from overseas, rather than Chinese fomula, has given rise to cowboy traders, he says. But their success will

be limited by Chinese authorities tightening regulations. “You can’t ride into town with infant formula and ride off with a bucket of money,” he told Rural News. About 30 firms export New Zealand-made infant formula; Morris predicts two-thirds of these will be out of business within five years. Auckland supermarkets were caught last year selling baby milk formula to Chinese exporters thousands of cans at a time while rationing them to other shoppers. This bulk trade was unknown to export authorities at the time. An MPI spokesman told Rural News it has been investigating infant formula exports to China for some time but will not comment further until the investigations are over. A premium has attached in China to New

Zealand-made dairy products since the melamine tainted-milk scandal in 2008, when six children died and nearly 1000 were hospitalised after melamine was added to formula supposedly to increase protein content. Morris says New Zealand’s image survived the melamine scandal although it engulfed Fonterra’s Chinese operations. “The Chinese trust our infant formula and they travel to Hong Kong to buy global brands rather than Chinese brands.” This has led to an increase in some Chinese traders falsely labelling their products as ‘NZ made’. The Infant Nutrition Council, representing most Australian and New Zealand infant formula exporters, knows of widespread concern among members. Chief executive Jan Carey says New

Zealand milk and ‘Brand NZ’ are highly prized by Chinese consumers. “The New Zealand brand is trusted and considered best quality. Some Chinese marketers will use any marketing trick to promote their ‘Brand NZ’ whether genuine or not. This is a widespread problem. The Infant Nutrition Council, the New Zealand Government and the Chinese Government are

The Sanlu tainted milk scandal in 2008 has put off Chinese consumers from local infant formula, opening new opportunities for New Zealand sourced baby powder.

aware of this.” Carey says it is helping in MPI’s investigation. Though infant formula

Well-regulated industry TIM MORRIS agrees the global infant formula trade is well regulated. “You can’t make infant formula in your shed and export it to the US or the EU. It’s like making a car in your shed and taking on Toyota.” Morris says infant formula is a highly defensive market in which the top three producers hold 50% of the world market and the top six control two thirds of global sales. This extreme level of global consolidation is driven in part by the

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leaders having huge sales teams urging doctors to push their brands. The global dairy infant formula trade reached US$34 billion in 2009, from US$21b in 2004. The fastest growing markets in the region are China and Indonesia. The world’s two largest dairy companies Nestle and Danone control 25% and 14% respectively. “We’re really good at milk powder; it’s the logical next step. New Zealand has a great future ahead in infant formula. “

Rural News // september 18, 2012

16 news

Quakes a shock for dairy PETER BURKE

THE ECONOMIC effects of the Canterbury earthquake are profound affecting the New Zealand dairy industry, says Professor Keith Woodford, Lincoln University. The September 2010 and February 2011 quakes caused damage costing $30 billion – most of which is now coming back

into the country as reinsurance payments, keeping the New Zealand dollar at its present high level, Woodford says. “It’s a huge amount of money that’s coming in. This is 2 ½ times the year’s dairy cheque coming by way of reinsurance money and in my opinion this is propping up the exchange rate.” Woodford says the effects of the quake plus the global eco-

nomic situation have been working together to have a downward effect on the predicted payout. Of course it is still very early in the season. “No one can say with confidence that the payout will be low, all we can is the payout could be low.” Despite the healthy increase in the September 4 Global Auction Trade, Woodford says the returns Fonterra and other companies are

making on their sales are still well below the current $5.25 milk price forecast. Everything will depend on whether the current upward trend in auction prices continues over the next few months, he says. “We still need to see at least another 10% increase in WMP prices to above $US3300 to be confident even about the predicted $5.25 milk price payout.”

Crunch time for kiwifruit PAM TIPA

THE END of spring will be a crunch point for New Zealand’s kiwifruit industry. By then it will know how far Psa-V has spread and how new varieties are holding up, says NZ Kiwifruit Growers Inc (NZKGI) president Neil Trebilco. This follows the discovery of Psa-V in Coromandel and Waikato, and concerns over symptoms in the new gold variety G3 and the Green Hayward crop which had previously proved resistant. With Coromandel the latest hit, it is possible the bacterial disease was already in the area and has emerged with spring growth, Trebilco says. “We know from last year that spring saw a great spread of Psa and we are seeing a lot more symptoms of Psa this spring and this will be concerning. They are doing a trace back on [Coromandel] but it is too early to tell. Once we get past October we will know more about how much Psa has spread, how much

it has affected the Green Hayward variety and the G3 variety.” Trebilco says they do know the Zespri Gold cultivar Hort 16A cannot survive in the face of Psa. “It doesn’t matter what a grower does, it cannot survive. We know Green Hayward and the new Gold 3 variety are more tolerant and the thinking is if growers follow all the recommended practices it does have a future. But we will know more come November/December.” Meanwhile growers need to be monitoring their orchards, following hygiene protocols and applying protective sprays. “Growers do need to be looking after themselves at a personal level,” says Trebilco. “ If they are feeling depressed or someone around them knows they are not coping they should be contacting their doctor or we have support services we can put them in contact with, so all they have to do is ring the NZKGI office or Kiwifruit Vine Health.” See www.nzkgi.org.nz or www.kvh.org.nz

Neil Trebilco – NZ Kiwifruit Growers president.

Growers support pest management A NATIONAL Psa-V pest management strategy for Psa, which would give Kiwifruit Vine Health (KVH) legal powers, is supported by 77% of growers who voted in a nationwide poll. The plan received its highest support (96%) in the regions which so far have no Psa: Kerikeri, Whangarei, Auckland, Poverty Bay, Hawkes Bay, Wanganui/ Horowhenua and the South Island. The containment areas Franklin, Waikato, Coromandel, Katikati and Tauranga West gave 82% support to the plan, while the recovery regions Waihi, Tauranga East and Te Puke gave 69% support. The voter turnout, including leaseholders and owners, was 50%.

Rural News // september 18, 2012

news 17

Industrial revolution for Chinese dairy PETER BURKE

CHINA IS making one giant leap to modernise its dairy industry, says Lincoln University’s professor of farm management and agribusiness, Keith Woodford. He told Rural News China is trying to do in a matter of years what has taken the West 150 years to do by creating an ‘industrial’ model for dairying. Woodford says there’s a huge change occurring in the dairy industry in China with the traditional peasant system being replaced by large scale modern farms and processing plants. “The problem with the old system was food safety issues. The melamine scandal in 2008 was, of course, the trigger for change, with thousands of children affected.”

Woodford says the Chinese Government has taken the food safety issue seriously and their answer is to go for large-scale dairy units.

pany called Modern Dairying with about 250,000 cows on about 50 farms. Woodford says this compare with Fonterra in China, with three farms

“The move to ‘industrialise’ the dairy industry is happening right across China.” “So rather than trying to aggregate up a few producers to slightly bigger herds, what they are trying to do is move to an industrial model. That means starting from scratch, turning out units that might be 30 hectares in size and running 3000 cows or they might be even bigger and running 5000 cows. The idea being the processor would be in control of the raw milk supply.” An example is a com-

and close to 10,000 cows. He believes Fonterra will eventually have about 100,000 cows. He says the move to ‘industrialise’ the dairy industry is happening right across China. “I know of a processor in the west of China who has 15,000 small farmers who supply his factory. His aim is get this down to just ten suppliers. He’d love to have a New Zealand farmer go up there and set up some of these units.”

Professor Woodford says the Chinese are adopting an American farming system. This is a mixed ration based on alfalfa hay, corn and soybean – a lot of it imported. “Overall there are huge imports going on. Last year, China imported 57 million tonnes of soybean, much for its pig industry which is also industrialising. One pig unit I am aware of has 500,000 sows and is producing 10 million pigs a year.” Woodford notes the huge differences in milk production systems in China. “One of the key things is that you take a New Zealand cow to China – about 50 ,000 go every year – and that cow will produce at least twice the amount of milk it does back home. In New Zealand, our cows produce about 4000 litres of milk per year, but in a

feedlot in China the same cow will produce 9000 litres.” Woodford believes if Fonterra wants to be a big player in the Chinese dairy industry it has to produce milk there. “If Fonterra wants to sell ice cream and yoghurt to China it will be a mix of fresh milk and milk imported from New Zealand. We can’t be a part of that scene unless we have a fresh milk supply over there as well.”

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Rural News // september 18, 2012

18 world

Aussie farm sale triggers political storm SU DES H KI SSUN

AUSTRALIAN GOVERNMENT approval of the sale of an iconic agribusiness to foreigners has triggered a political storm. A split has emerged in Opposition ranks – the Nationals are in open warfare with coalition partner the Liberals and shadow

treasurer Joe Hockey – over handing control of Australian farming assets to foreigners. The sale of Cubbie Station in southwest Queensland resembles the Crafar farm saga in New Zealand. Cubbie Station, Australia’s largest cotton farm, went into voluntary receivership in 2009,

reportedly with debts of A$320million. On August 31, Treasurer Wayne Swan said he had approved selling Cubbie Station to a company owned by Chinese and Japanese. Shandong RuYi Scientific & Technological Group Co Ltd will own 80% of Cubbie. The remaining shares

will be owned by Lempriere Pty Ltd, an Australian family-owned group with a long history in wool trading and farming. A wholly owned subsidiary of Lempiere will manage the operation including the marketing and sale of its cotton production. Swan says the sale is subject to impor-

tant undertakings by the buyers in respect of employment, ownership, board composition, management and water use. RuYi has undertaken to sell down its interest to no more than 51% within three years. But the sale has not gone down well with Nationals, whose support

Cubbie Station is Australia’s largest cotton producing farm.

Amazing Performance. Even Better Value. base is mostly rural. National leader Warren Truss says Swan must explain why it is in the national interest for control of Australia’s most valuable farm, along with its massive water rights, to be ceded to overseas owners. “Under current rules it is difficult for foreigners to buy a suburban home in Australia, but it seems the treasurer has no issue with the biggest irrigation farm in the country being bought by overseas interests. “While capital flow

said the sale would create massive complications over water licences, with interstate and diplomatic issues. “The major holder of the licence becomes Shandong Ruyi, an enterprise chaired by someone appointed by the Chinese Politburo.” Hockey, the opposition coalition’s spokesman on foreign investment, has publicly rebuked Nationals speaking out against the sale. “They do not speak for the Coalition. They do not even speak for the National Party or

Independent MP Bob Katteer, a bit of a maverick, formed his own party and is vehemently anti-foreign investment - sound familiar?

is welcomed, the treasurer must explain how a purchase of this scale will not compromise market competition or pricing of Australian cotton, with Cubbie representing about 10% of our national cotton crop.” Outspoken National Senator Barnaby Joyce

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the Liberal Party. I speak on the foreign investment policy of the coalition. We support the Foreign Investment Review Board.” Cubbie Station is a 93,000ha business on properties in the MurrayDarling Basin in South West Queensland.

Australia’s Winston? INDEPENDENT MP Bob Katter, who represents Queensland’s biggest electorate, Kennedy, says Australians are disgusted by the Cubbie Station sale. And he says Australians should be equally appalled by the ‘crocodile tears’ objections of politicians belonging to major parties determined to sell out the country.

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world 19

US pig producers not bringing home the bacon AL A N H ARMA N

AMERICAN PORK producers are facing some of their worst economic losses in recent history – billions of dollars – as A record drought wipes out feed supplies,. Purdue University agricultural economist Chris Hurt says producers could lose about US$30 a head this summer and nearly US$60 a head during the final quarter of the year as continued killing of herds drives down market pig prices and drought drives up feed prices. This exceeds previous record quarterly losses of US$45 a head in the

final quarter of 1998. Hurt says in the next 12 months, losses could average US$33 a head, meaning about US$4 billion in losses for the US pork industry. “A tsunami of red ink is about to wash across the pork industry, which is facing losses unseen even in the fall of 1998 when hog prices approached zero value. Stressors include more hogs than expected in the market, rapid sow liquidation and record feed prices.” The market anticipated a 1% increase in slaughter numbers, but in recent weeks slaughter has jumped by 6%. The unex-

pected addition of hogs to the market has caused a more than US$10 per hundredweight drop in prices since late July with prices now in the high-US$50s. A number of fac-

tors could be driving the slaughter increase, but Hurt says it’s likely related to the high cost of feed and a desire by producers to sell pigs before market prices tumble even fur-

ther. Based on current lean hog futures, prices for the final quarter this year are predicted to fall to the mid-US$50s per hundredweight. But the cost associated with raising hogs

continues to rise. “Tragically, costs of production are expected to be above US$75 per live hundredweight for the remainder of this summer, fall and winter,” Hurt says.

He refers to “shortterm carnage” and expects losses to continue through the winter but for the industry to return to near the break-even point by late spring.

Reshuffle sees UK Ag Minister lose his job UK FARMERS have pledged support for the country’s new agriculture minister and head bureaucrat appointed by Prime Minister David Cameron. Farming Minister Jim Paice and the secretary for environment, food and rural affairs (Defra), Caroline Spelman, this month lost their jobs in a Cabinet reshuffle. Cameron has appointed Owen Paterson to head Defra and Liberal Democrat MP David Heath as the new David Heath farming minster. NFU president Peter Kendall says he looks forward to meeting Paterson and discussing ways in which the farming industry and government can work together. He says Paterson, a former shadow Defra spokesman, has “a real appreciation of the importance of agriculture”. Kendall thanked Spelman for leading Defra for two years. “The economic background has made this a difficult period to be in charge of a spending department such as Defra, and she made some bold decisions on key issues, not least tackling the devastating problem of bovine TB faced by cattle farmers.” Paice says he is disappointed at losing his portfolio. “It was a job close to my heart and for two-and-a-half years I tried hard to help the industry to adapt to change and for the food industry to play its part in economic recovery.” Kendall thanked Paice for working hard for the farming industry. “The challenge now is making sure we have a strong, credible, courteous and consistent working relationship with the new secretary of state and the new farming minister.” Kendall says farming as an industry is poised to be one of the UK’s economic success stories over the coming decade. “Demand for food globally will increase and there is much we can do to ensure a secure domestic supply of top quality food. To this end, the government must take a coherent approach to food and farming policy, recognising the importance of domestic production.”

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Rural News // september 18, 2012

20 agribusiness Hard yards done first NATHAN FLOWERDAY grew up on a dairy farm in Waikato and graduated from Massey University as Bachelor of Applied Science, majoring in rural valuation and farm management. From 1997 to 2003 he worked as a rural manager for ASB Bank in the Bay of Plenty specialising in lending to the dairy and kiwifruit sectors. He then spent two years with Merrill Lynch Investment

Managers (MLIM) in London as a business analyst and management accountant before returning to New Zealand where he spent three years working for Opotiki Packing & Coolstore Ltd (OPAC), becoming grower services manager and information systems project manager. OPAC provides grower, post-harvest and orchard management services to kiwifruit

growers from Gisborne, through Eastern Bay of Plenty to Te Puke. In August 2009 Flowerday resigned from OPAC to grow his own kiwifruit orchard businesses and is now managing director of two companies: NWF Holdings Ltd and High Fives Orchard Ltd growing all five commercial Zespri Kiwifruit varieties in Te Puke. Flowerday manages the day-to-day orchard operations,

through to the financial statements, and the companies are in the top 25% of kiwifruit orchard performance. He also currently holds directorships or consultant positions with Riverlock Orchard Pack & Cool Ltd, NZ Kiwifruit Growers Inc and Kiwifruit Vine Health. In June 2011 he became the first associate board member of the Agmardt board of trustees.

New director shows youth and wisdom PAM TIPA

THE RISING average age of farmers creates succession problems not only for farms and orchards; it is also seen in the boardrooms of primary producer businesses. That’s why Zespri’s newest director Nathan Nathan Flowerday – Zespri’s Flowerday is pleased an youngest director. Agmardt scheme which helped him get elected to Zespri’s board will be extended to others. Flowerday was the successful candidate in 2011 for an associate board trustee position created by Agmardt on its own board to give young farmers or growers governance experience. He believes that experience gave Zespri voters the confidence in him to elect him in July this year to the Zespri board. As a result, he and Agmardt are urging other agribusiness organisations to pick up the idea of creating an associate board-membership position, or at least establish observer positions on their boards. Now the youngest Zespri director, Flowerday (35) says the average age of New Zealand farmers was last year 58, and this year 59. “There’s not the refresh coming through; that is pretty well recognised at all levels, including positions at governance tables as well.” That’s one reason Agmardt decided to create the associate position won by Flowerday out of 69 applicants. He has overseas banking experience and is managing director of two orchard companies, managing both day-to-day. Flowerday says the Agmardt position allowed him to sit on a board and participate fully in the meetings. “I didn’t have voting rights but it was still an active role and that allowed me to gain experience. I also did Institute of Directors governance training; Agmardt helped me through that weeklong training process.” Flowerday says the scheme was so successful Agmardt has decided that once he finishes his 12-month tenure more candidates will get the same opportunity. He believes the fact that there were 69 applicants for the position shows “there’s a huge interest and desire for people to get on boards. But it’s almost like getting your first job… getting that experience under your belt. “And we’re trying to encourage other agribusiness boards to think about whether they could create an associate position or at least an observer position. “Agmardt sponsors Young Farmer of the Year and talking to other sponsors that sit on agribusiness boards about the issue has certainly opened their eyes. They are thinking about what they should be doing for their own businesses for succession planning on their boards as well. “It is very difficult for people who are aspiring to be directors to get experience and or even observe. “I was also able to sit on another agribusiness board as an observer and even that was great, to see how another board went through its processes. “I hope other young people will see that if you do put your hand up, try hard and take opportunities that come along, you can succeed into getting into governance positions.” Flowerday admits it is not an easy time to join the Zespri board, as Psa continues to devastate the industry. “That was one of the main reasons for wanting to step up. I am a kiwifruit grower and dealing with Psa myself but I knew I could do more for the industry. The best way I thought I could help my fellow growers is by representing them more on the Zespri board.” Flowerday says he came onto the board with “eyes wide open” over the challenges. “I’ve been well accepted by the rest of the board and it’s been rewarding already.”

Rural News // september 18, 2012

agribusiness 21

Reasons for the high-flying Kiwi dollar A MAJOR factor in the fortunes of farming in this country is the fluctuation of the Kiwi dollar. Like the rest of New Zealand, the Kiwi dollar punches above its weight. The Kiwi is in the top ten traded currencies in the world, any currency in the top ten is considered a major currency in the global foreign exchange market. This has its pros and cons. One of the cons is our inability to significantly control our currency onshore. The Reserve Bank can try to sell Kiwi dollars to drive the currency down, but this is temporary and largely futile when combating market forces. The Kiwi dollar’s strength prior to the financial crises was largely due to international interest rates and the carry trade. The carry trade represents the difference between our interest rates and the interest rates of the other countries in the top ten. Buying currency is like putting money in the bank of the country where you bought it; you receive the interest rate of that institution at the time. Remembering a country’s base rate determines the rate that given country’s bank will charge – plus a margin for themselves which usually sits 2-3% over the base rate for top-

tier banks. In June 2007, New Zealand’s base rate stood at a whopping 8% the highest of the top ten currencies. If you compare that to the lowest at the time, which was Japan at 0.5%, that is easy money for a fund manager borrowing money in Yen at 0.5% and buying Kiwi at 8% picking up a 7.5% margin (also known as the interest rate differential or the spread) for no more work than a simple transaction. However, like anything in life, this trade is not without its risks. The risk to the fund manager is the possible decline in the value of the Kiwi dollar eroding the gains from the 7.5% margin. But with an interest rate spread of 7.5% many international investors will be doing the same, buying Kiwi dollars to take advantage of this easy money, in turn creating demand for Kiwi dollars pushing up the value of our currency. A risk management tool to hedge against a downturn in the Kiwi for the fund manager is purchasing currency forwards, which are contacts to buy a certain amount of currency at a certain time and price. This is a tool that can be – and is already used by farmers – to hedge against currency fluctuations. I will talk more

about currency forwards in depth at a later date. This has all changed since the financial crises of course; our base rate has dropped to 2.5% - while still relatively high compared to the other top ten currencies the profit margin has dropped considerably. Although the carry trade still exists

for the big players it has reduced dramatically.

However, the Kiwi dollar still remains at record highs. This brings into effect New Zealand’s strong macroeconomic indicators compared to the rest of the world and the strong demand for our farming goods. A strong currency for New Zealand looks likely to be around for

some time impacting on our competitive advantage and ultimately returns for our farmers, but there are ways to plan against this and by reporting on the changes to the macroeconomy and international agri markets we will achieve our continuing goal of keeping the farmer updated and informed.

• Originally from Palmerston North, Francis Wolfgram graduated from Victoria University in 1996 with a Bachelor of Arts in Economic History. He has 15 years’ experience in the financial markets working for some of the world’s largest financial institutions primarily based in London and Sydney.

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SINCE THE start of agriculture in New Zealand, international market forces have played a vital role in the prospects for the industry. The aim of this column to inform the New Zealand farmer of major international agricultural market news focusing on our major trading partners Australia, China (including Asia) US and the EU. The areas of focus will be macroeconomic changes, interest rates, world currency movements and the implications for the Kiwi dollar, environmental changes and their effects on agricultural commodity prices, and the financial markets, in particular agricultural futures and shares – overseas and at home. Developments in the macro economy have inevitable consequences for farming. Key factors linking agriculture to New Zealand and global macro economy are exchange rates, international trade, foreign and domestic income, employment, interest rates and energy costs. International and domestic macroeconomic shocks can cause major changes in the values of these indicators, resulting in changes in a country’s agricultural prices, production, consumption and trade. I want to outline the effects of macroeconomic conditions on New Zealand and international agriculture, including impacts of the recent economic crisis and the factors in commodity price movements.

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

































































































































 







 

 

 



  



























































































































































 













Last Year

This Year







 

 

 























  



















 



 

 























 

 







 





























  

 







 







 











 































   



 













 

 







 







 











 







 







  

 





 

Beef Market Trends





 

 

 









































 

 

 



























  









      







90%







 

  

  

















      

70%







  



80%







 

 







  

  













 

 

 



























 









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

Received cattle from a sale yard lately? KingSt11473_RN_A

Don’t forget to confirm with NAIT or your information provider that the animals arrived at your property. This is a legal requirement to ensure the animals can be traced.

www.nait.co.nz | info@nait.co.nz | 0800 624 843

Rural News // september 18, 2012 

Beef  Local trade takes centre stage Local trade prices edged higher this week in both islands and because operators are tending to accept the heavier ‘export cattle’, export processors are dealing with heated competition. Some export processors have had to bite the bullet and try and match local trade prices in order to get the cattle. Offering all weights and grades is not uncommon. Last week, local trade in the North and South Island was $4.50/kg on average while 300kg cwt prime steer was approximately 10-20c/kg off that. The underlying driver of current prices is a shortage rather than increased consumer demand for beef. Beef is finding it tough competing on the domestic market while there are other proteins selling at cheaper rates, even lamb. Aussie beef is also hitting our shores to supplement the current shortage of domestic beef, which is likely to be holding back local trade prices from really taking off. Japan set to ease age restrictions on US beef NZ exporters have found the Japanese beef market sluggish this year, partly due to consumers tightening their purse strings. The weak US dollar has also given US beef a competitive advantage, with the US recently exporting their highest monthly volume to Japan since trade resumed in July 2006. Another blow to this market,is that Japan will ease the current age restrictions on US beef in the near future. A Japanese Government advisory panel recently announced it would be a significant step towards Japan-US trade relations and the upper age limit posed little risk. The anticipation of the age limit being relaxed from cattle <21mths of age to <31mths of age is likely a reason behind importers buying hand to mouth, seeing once the changes are made,even more US beef will enter this market at competitive rates.









 



 



  















































































  





 

 

   

















 















 









 





 

 











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



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





 

  















































































Lamb 

 Meat processors tread with caution  Meat processors continue to tread with caution when  buying lambs as there is plenty of stock already in storage  that needs to be shifted. Chilled product is moving more   freely. However the frozen market is dead as a doornail so     they want to avoid adding to the pile. North Island export  lamb prices remained flat on $5.56/kg (net) on average       last week. There has been a recent lift in lamb slaughter in the North Island and this trend could continue as it   usually does at this time of year. In regions where there is  cropping, such as the HB, there has been a flurry of lambs  as farmers start spraying out paddocks once again. Local  trade lamb prices are streets ahead, with an extra 15  20c/kg often being paid. In the South Island, 16kg cwt   lambs increased a smidgen to $5.68/kg (net) as  processors found they had to dig harder to source lambs.       NZ will struggle to fill EU quota NZ won’t come close to filling its EU quota once again, especially since it  was increased to 228,254t for this year. The NZ Government negotiated     the 400t increase last year to compensate for market loss when Romania    and Bulgaria joined the EU. Even when the quota was less, NZ didn’t     come close to filling it in 2010 and 2011 when only 86% and 80% was     met, mainly due to supply constraints. This year, NZ exporters have also     had to deal with reduced demand, especially from the EU financial crisis.    

Venison NZD/EUR erodes venison returns The seasonal price hikes venison usually incurs at this time of year has been slower than originally anticipated. NZ exporters have had to contend with a much higher NZ dollar against the Euro this year, which is weighing heavily on farmgate prices. Northern Europe has handled the EU recession reasonably well, but it’s now starting to take its toll. European wholesalers are preferring to buy hand to mouth as there is uncertainty around how consumer demand will pan out for the rest of the year.













 





 









  



Oct







 

  



Nov



US Dollar

















UK Pound

   

 Sep







 Aug







Jul







Jun











 



Euro





 



 







You can confirm animal movements directly in the NAIT IT System. To find out more visit www.nait.co.nz/confirm

Rural News // september 18, 2012

24 opinion editorial

edna

One Plan from hell THE MUCH-HERALDED Horizons Regional Council One Plan has turned from wine to vinegar – bringing anger from farmers, and gloating from ‘greenies’. Confusion reigns in the region as the parties try to assess the outcome and impacts of the Environment Court’s decisions on the appeals to the plan. Farmers in the region had hoped the One Plan, as delivered by the independent hearing commissioners, would stand. It had logic, common sense and reason stamped all over it. But the ‘green’ lobby – Fish and Game, DOC, and others – got involved in appeals. On the face of it the outcome looks ominous for the primary sector in the region. Why the Environment Court ignored a perfectly good plan with general community support is bewildering. When the Minister of Primary Industries starts to get involved you know there’s a problem. Carter is concerned the decisions in the One Plan’s provisions – seen as precedent-setting – could spill over into other regions and derail such things as the intensification of agriculture and irrigation schemes. Worse still, it could open up old wounds between environmentalists and farmers, and could derail the Land and Water Forum – a pet project of the Minister. One Plan, as of now, looks set to put some silly constraints on agriculture and affect the region and potentially the nation’s economy; it’s serious stuff. DOC has copped a lot of flack from farmers who say it should stay out of the advocacy role, or at least take a minimalist approach. It’s hard to see that happening; their chief executive says it’s part of the organisation’s role. This raises the issue of whether the Ministry for Primary Industries should enter the fray and counter the arguments of DOC and other green lobby groups and support farmers. During the old days of MAF they did exactly that. Sadly, the Government’s new reforms of local government and the RMA will come too late to prevent this debacle. The battle over One Plan is not over and with further appeals in the wind, lawyers and judges can look forward to another financial feeding frenzy at the expense of ratepayers and taxpayers. And since ‘common sense’ long ago died we are left with this mess that is bad for everyone.

“...so, until you’ve had the nitrogen levels checked, don’t stand near your effluent ponds when you light your pipe!”

the hound Fact not fiction YOUR OLD mate notes the former organic lobby mouthpiece and now Green MP Stefan Browning recently used taxpayer funds to pay for him and two Australian doomsayers to tour New Zealand bagging genetic modification and extolling the virtues of organics. What’s the bet he and his wooden bike-riding cohorts failed to mention a recent study that found organic grain yields are on average as much as 35% lower than conventionally grown crops worldwide.

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Just to make things worse… MEANWHILE, AS Browning et al were protesting (what else do Greens do but protest?) about the recent ag-biotech conference in Rotorua. Stanford University scientists also weighed in on the debate about the so-called merits of organic food. They found, after an extensive examination of four decades of research comparing organic and conventional foods, that fruits and vegetables labelled organic were on average no more nutritious than their conventional counterparts, which also tended to be far less expensive.

New broom needed?

Changing times…

A MATE of the Hound reckons someone needs to take a look at Fed Farmers’ current communications strategy. “Don’t they realise there is such a thing as too much noise? Way to turn middle (urban) New Zealand off at the mere mention of Fed Farmers,” he told this old mutt. “It’s: ‘Fed Farmers this…’, ‘Fed Farmers that…’, ‘Fed Farmers upset about this…’, ‘Fed Farmers angry about that…’ “No kidding! They’re always ‘upset’ or ‘angry’ about something”…. According to the Hound’s mate, the Feds (and sadly all farmers by association) are coming across as a bunch of moaning idiots.

THIS OLD mutt reckons, as the song goes, ‘the times they are (definitely) a-changing’. As a mate of his opined the other day: “With our politicians cracking down on smoking by outlawing branded packaging and legalising gay marriage; it’ll soon get to a point where you are not allowed to smoke a fag, but it will be okay to marry one!” Hmmm… your canine crusader will leave it over to readers to cogitate on that little witticism.

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LAST YEAR you had three potential buyers for your product. Now there are two, and one of them has your arm twisted up your back. In the eyes of the Commerce Commission this is fine, judging by its approval of Fonterra’s acquisition of NZDL. Your old mate has no problem with the cooperative picking up the failed Russian venture, in fact it’s probably the best outcome. But Fonterra’s insistence on all suppliers signing a 7-year loyalty agreement has about it a bad smell – almost as bad as the commission’s failure to call foul on such strong-arm tactics.

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Rural News // september 18, 2012

opinion 25

The great NZ foreign sell off myth government approval of the sale of Queensland’s Cubbie Station to Chinese interests for a rumoured $A350 million. Cubbie is Australia’s biggest farm, holds a massive water rights allocation and produces 10% of Australia’s cotton. A few maverick

luke m a lpass

THERE IS a great myth that New Zealand is open for business. Anyone following the Crafar farms sale and related legal battle could be forgiven for thinking New Zealanders are hocking off land and assets in a laissezfaire fire sale to rapacious foreigners. However, little could be further from the truth. According to the OECD New Zealand is in fact performing very poorly compared to other countries in the race to attract overseas capital. Out of 55 countries measured by the OECD regulatory restrictiveness index, New Zealand is ranked as having the sixth most-restrictive foreign investment regime in the world. We are far more restrictive than both the OECD and the non-OECD average. The five regimes more restrictive than New Zealand are China, Saudi Arabia, Indonesia, India and Japan. Analysis by The New Zealand Initiative has delved further into the OECD data, and measured New Zealand’s restrictiveness on an industry-byindustry basis. Staggeringly, New Zealand has the most restrictive regime of all 55 countries for manufacturing. For a nation that has never-ending debate on how to create value-added export industries, this alone should be cause for great concern. New Zealand is most restrictive, relatively, in the ‘food and other’ and ’electric, electronics and other instruments’ categories. Only one other country has a more restrictive regime in respect of each of the ‘oil refinery and

MPs aside, the decision was supported by both sides of politics. New Zealand has been lagging on foreign ownership for 15 years, and it is beginning to cost the country in the form of lower levels of investment. Ultimately it is simple:

saying no to foreign investment means saying yes to lower living standards. • Luke Malpass is the co-author (with Bryce Wilkinson) of Verboten! Kiwi Hostility to Foreign Investment, released by The New Zealand Initiative – www.nzinitiative.org.nz

Tunnelhouses According to research by the NZ Initiative’s Luke Malpress (inset) contrary to popular belief New Zealand is actually lagging behind in foreign ownership.

chemicals’, ‘metals and machinery and other minerals’ subcategories. Only two other countries are more restrictive in respect of hotels and restaurants. Only three are more restrictive in respect of forestry, fishing and wholesale trade. However, 10 countries have more restrictive regimes than New Zealand in respect of agriculture, and 23 are more restrictive on investment in the media. FDI (foreign direct investment) restrictiveness comparisons are important precisely because they are comparative measures: New Zealand competes on the same basis as all other nations for capital and is clearly slipping on competitiveness. Investment restrictiveness is also 100% controlled by government policy, not by less-tangible factors such as history or culture. This should be a worry for all New Zealanders. Most evidence shows that FDI positively contributes to job and incomes in the host country. Countries with higher levels of FDI generally have higher levels of productivity. By making investment in New Zealand unnec-

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essarily restrictive, the Government is not only limiting the above benefits but also imposing mostly unobservable costs on all of us. Expensive and difficult investment processes limit the amount and raise the cost of capital. This affects all New Zealanders through lower property prices and higher mortgages. Of course you won’t hear any of this from advocates of further restricting New Zealand’s foreign investment regime. There is a ‘free lunch’ mentality, where it is argued that ‘New Zealand’ in general gets benefits from restricting foreign investment that individual New Zealanders don’t have to pay for. In the case of farms, further restrictions on land sales to foreign owners will depress future agricultural property prices – this is good if you are looking to enter the market, but potentially costly if you are looking to sell or have borrowed against the value of the land. Over the past decade, Australia has been the beneficiary of an unprecedented $270 billion investment pipeline that sluices around the country lubri-

cating the cogs of economic activity. Without foreign investment, there would be no resources boom and most probably far fewer Kiwis heading there. In fact, recently Australian Treasurer Wayne Swan announced

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Rural News // september 18, 2012

26 opinion

The growing relationship between NZ and China John Key

RELATIONS BETWEEN New Zealand and China are very good. We have extremely good trade links, which each year go from strength to strength. Our governments meet often and work together

effectively. In 2012, Vice Premier Li described the relationship between our two governments as “at its best ever”. In 1972, Richard Nixon made his ground-breaking visit to China. That, on

top of outstanding diplomacy by Henry Kissinger and Zhou Enlai, provided the opportunity for 28 countries, including New Zealand and Australia, to officially recognise the Beijing government.

New Zealand recognised China in December 1972, establishing the basis for New Zealand’s enduring ‘one China’ policy. In 1972, bilateral trade between New Zealand and China totalled only $1.7

million, and there were no air links between our two countries. So much has changed in 40 years. Since the establishment of diplomatic relations, New Zealand and China have developed a

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broad and substantial relationship that is among New Zealand’s most important. Our trade relationship, in particular, has been a huge success, and momentum has grown very quickly in recent years. In part, that is because of China’s ever-increasing importance in the global economy. In 1981, when several pioneering New Zealand businesses formed the New Zealand China Trade Association, China accounted for 2.3% of global GDP. By 2011 this had risen to 14.4%. Rapidly rising living standards, increasing urbanisation and a shift to higher-protein diets have supported demand for New Zealand products. But our booming commerce is also due to the fact that New Zealand and China have worked hard to develop our trade relationship over a number of years. New Zealand was the first country to recognise that China had established a market economy, in 2004. We were the first country to agree bilaterally to China becoming a member of the World Trade Organisation. And in 2008, our two countries signed an historic free trade agreement. Since then, trade between us has grown exponentially. New Zealand’s goods exports to China have trebled in only four years, and China is now our second-largest export market. Dairy and wood products are the largest export commodities, followed by meat and wool. New Zealand now exports more than ten times the value of product to China every day than in all of 1972. Chinese demand has done much to support the New Zealand economy over the last few years. Two-way trade in 2011 totalled $13.3 billion and is rising all the time.

Our countries are on track to achieve the goal Premier Wen and I set in 2010 – of doubling our trade to $20 billion per annum by 2015. Our investment relationship with China is much smaller than our trade relationship, but that, too, is growing. China is New Zealand’s 11th-largest investor with $1.8 billion of investment in 2011. In particular, Chinese firms have made investments in New Zealand forestry, manufacturing and agriculture. Recently, there have been some encouraging examples of New Zealand firms investing in China. Fonterra, for example, plans to increase the number of farms it operates in China, with about NZ$50 million investment per farm. It is safe to assume current trends will continue. Europe will remain a vital outlet for some of our highest value exports, but our biggest growing markets will be around the Pacific basin. In that environment, New Zealand has a lot to offer. We are a reliable, competitive and high-quality source of food. We have technical knowledge and expertise that can help countries in this region develop, build infrastructure and add value to their natural resources. There are many new fields of opportunity for New Zealand businesses and people to explore. To operate successfully in this region over coming decades they will need to have a good understanding of China and of Asia in general. In February I launched the NZ Inc. China Strategy. The strategy is to get greater efficiency and effectiveness across all government agencies that work in, and with, China. The strategy sets out to page 27

Rural News // september 18, 2012

opinion 27 Don’t call me xenophobic, just a concerned nz-er a prime example. There was nothing xenophobic about a lot of people voicing concerns about the way she was trying to acquire New Zealand farms, yet the Government supported her in the name of foreign investment and labelled anyone who dare question it xenophobic. Now look what’s happened. What annoys a lot of people about the

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at a fair local market value. Given the current Government’s rules in 20-30 years, how much land will still be owned by New Zealanders and how much of ‘our’ export earnings will be heading offshore? Farming is New Zealand’s biggest income earner, why are we giving it away to other countries? K Neal Christchurch

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etc. There’s nothing these people are going to do that New Zealanders couldn’t have done on these farms. What incentive does that give the next generation of would-be New Zealand farm owners? It seems hypocritical that the people who favour selling to the highest overseas bidder actually bought their own land off New Zealanders

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THE DEBATE over Transpower sponsorship of Federated Farmers was eloquently answered by Bruce Wills (September 4). Then, with perfect timing, Rural News uses the first rule of politics (always accuse your opposition of your most egregious faults) to shoot itself in the foot by running an article by Warwick Catto of Ballance Agri-nutrients. This of course had nothing to do with the two advertisements in the same edition. Roger Beattie Christchurch

from page 26

taxpayers actually get out of the deal and how much went to overseas owned banks? Many New Zealander’s lined up to buy these farms at a fair price, yet the Government turned its back on New Zealand buyers in favour of overseas owners on the excuse they would spend more money on new homes, fences, put in new pasture,

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ambitious, high-level goals, together with actions to achieve them. The five goals are: Retain and build a strong, resilient political relationship. Double two-way trade to $20 billion by 2015, as I mentioned before. Grow services trade including education services by 20 per cent, and grow the value of tourism exports by 60 per cent, all by 2015. Increase investment to reflect our growing commercial relationship.

Crafar farms deal is that China puts pressure on the New Zealand Government to sell land to them, yet they won’t allow New Zealander’s to buy their land. Where’s the free trade deal in that? The owners won’t live here, they just want to own 16 New Zealand farms so they can make more money for themselves. How much money did New Zealand

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their own country. That’s because New Zealanders can’t afford to pay unrealistic prices for farms. When New Zealanders own the farms all the profits stay here. It’s far better economically longterm for our country, whereas foreign owners take a lot of the profits offshore to boost some other country’s economy. Is this really foreign investment, or foreign exploitation? The Government tries to imply it’s the Overseas Investment Office and Landcorp who are making decisions on the Crafar farms deal when in fact they are both government organisations accountable to the Government. The fact the OIO doesn’t take much account of profits heading offshore when they make a decision makes it difficult for New Zealand buyers to put up a financial case against overseas buyers. As soon as New Zealander’s complain about foreign ownership of New Zealand land the Government and others automatically label them xenophobic. The May Wang deal was

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I WRITE in response to the editorial in Rural News August 21. New Zealand governments in the past broke up large run-holdings to allow more people into farm ownership and help build vibrant rural communities. The Rural Bank was also used to help young New Zealanders get into farm ownership and the next generation could afford to pay out their siblings and take over the family farm because farms were priced on what they could produce plus a bit of capital gain. Now the Government doesn’t seem interested in helping New Zealanders get into farm ownership. Instead, they prefer to sell New Zealand farms to the highest overseas bidders for short-term gain. Overseas people badly want to buy farms in New Zealand because they can see they are a valuable asset where money can be made. They are prepared to pay well above New Zealand market value to get these farms, which pleases the Government but has the negative effect of turning New Zealanders into tenants in

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Rural News // september 18, 2012

28 agribusiness profile - rotowiper CONGRATULATIONS! TO ROTOWIPER From the team at

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Tough times no barrier to success When Dougal and Jenny Lamont purchased Rotowiper Ltd in April 2007, they had no idea the years ahead were going to be some of the most challenging times ahead for business. The worldwide credit crunch had a severe effect on the business early on in 2008. Export sales were hit hard – both by volume of sales and with the ever rising dollar damaging profitability. This experience forced them to really “dig deep” and draw on experience to carry their business through. “We worked hard on developing more markets” Dougal explains. “As well as pursuing other opportunities –like contract-manufacturing for other companies.” The market for Rotowiper products is worldwide, but being a small company it has been a real challenge reaching these export markets.

“We presently have distributors in Australia, USA, England, Ireland, Chile, South Africa and recently delivered our first unit into Japan,” Dougal adds. “Over the years, many units have also

He says they have also invested in new technology – such as installing Zinc Ark spray technology so that they can do contract work for customers. “This is an advanced alternative

Dougal Lamont - managing director Rotowiper Ltd.

been sent to other countries such as Holland, Uruguay and Germany. France is our next country of interest and we believe there are huge possibilities there.”

to hot dip galvanizing with some very great benefits. We see this as another avenue of income to give us greater security for the future,” Dougal says. “We already have a

shot blasting and painting facility with a very loyal customer base. We believe the Zinc Ark Spraying will enhance this part of our business. During 2009, they established – along with an outside partner – a second company; Mouldings Unlimited SI Ltd, which is a plastic rotational moulding business. This company is primarily a contract manufacturing business, but it also manufactures a small range of products which they direct market. Rotowiper Ltd is one of the moulding company’s key customers and it manufactures all the tanks for Rotowiper. “Originally there were five people working for Rotowiper Ltd and this has now grown to seven – with two more in the Moulding company giving a total staff of nine,” Dougal adds. “The end result has seen the company survive and grow during these times.”

Rural News // september 18, 2012

agribusiness profile - rotowiper 29 Rotowiper range helping farmers wipe out their weeds Dougal Lamont believes the success of Rotowiper can be put down, in the main part, to the continual introduction of new models and sizes of machines. “We are now hitting the market at both ends of the size scale. “At the one end, we have a 500mm trial unit for under vine wiping. To the other of developing a large unit of up to 36m, which is currently on the drawing board,” he explains. “The future for us is to keep developing and improving features which will increase benefits for our customers.” The Vineyard Wiper is being trialed by one of the key wineries in the Cromwell area. Amisfield Vineyard has seen the benefits of Rotowiping and believes this will allow them greater control of emerging weeds. At the other end of the scale, the company has a spraying contractor who wants to have a 36m Rotowiper for work in cropping situations in Victoria, Australia. “The most significant benefit that Rotowiper has over all its worldwide competitors is our continual development and range of models,” Dougal says. “We have learnt that if we are to survive into the future we have to be smart developers and manufacturers and be able to custom build to individual needs – as well as maintain efficient bulk manufacturing for the core farmer market.”

The company will have 5 model categories. The “Small” Models: Specialist built for vineyards, kiwifruit, orchards and other mainly horticultural operations The WCF range: This is the farmer models, which can be towed behind a quad bike. The size range is: 1.8m, 2.4m, 2.8m, 3.2m & 4.5m models. “These are the bread and butter for the company and we sell these to farmers all over the world.” Dougal says the introduction of a trailer has been a great enhancement. This allows the units to be moved around the farm – as well as easily between farms – and was developed from strong farmer demand. The LMU Models: These units are tractor-mounted, come with a three-point-linkage and a fixed frame-width. There are three standard model widths – 2.9m, 3.65m and 4.26m. The FU Models: These are tractor mounted fold-up models. There are three standard sizes – 6m, 9m & 12m. “This range of models was one of the greatest steps forward for Rotowiper,” Dougal explains. “It was the beginning of the “bigger” units with functionality. The LMU range had gone to 6 metres, but with little functionality – 6 metre fixed-frame was too wide to move around and was

also too wide to wipe effectively.” There was too much hitting what you didn’t want to wipe – as well as missing weeds. Simply the ground was not flat enough! “We looked at this problem and the market and we could see that a machine with flexibility and easy transportation was required. “The FU600 was designed – 2 x 3 metre sections that contour-follow the ground – which made a functional machine for the larger scale farmer and contractors.” This successful development, lead to plans of designing even bigger machines. “In 2011 we built our first 9 metre unit, and we now have these machines in the USA and Australia. “Then a customer in the US, operating two FU600 machines, said he would like to go to a 12-metre unit. Very quickly we scaled-up the 9 metre unit and in February 2012 the first 12-metre unit was sent to the US.” The “Mega” Models: Custom built big machines to suit the individual needs & requirements. “This will be where we develop for the future – custom building wide machines up to 36 metres,” Dougal adds. “These will be fully trailing initially, but the option will be to build three-pointlinkages as well. Some initial design has been done on a model for a company

in Tasmania for wiping out weeds in Pyrethrum crops. Lady Muck Outdoor Vacuum: Rotowiper also manufacture and markets the Lady Muck Outdoor vacuum. This unit has multiple applications: It was primarily developed as a paddock vacuum for cleaning up manure from horses and Alpacas. However, the Lady Muck is also used for cleaning spouting, cleaning out chicken sheds,

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management 31

Heads up on marketing hype In the third of Rural News’ series previewing New Zealand Grassland Association’s conference in Gore, Andrew Swallow talks to Doug Edmeades, lead author of a paper which proposes a better way of assessing nutrient input efficacy BEWARE THE marketing claims, and take a hard look at the science and statistical analysis behind them before spending on

Doug Edmeades

nutrient inputs. That’s the underlying message in what is sure to prove one of the more controversial papers at this year’s conference. Under the heading ‘Evaluating the agronomic effectiveness of fertiliser products’, authors Doug Edmeades and Richard McBride, of agknowledge, conclude there’s a better way to present product research results. In reaching that conclusion they’ve analysed trial work behind a string of plant growthenhancing products marketed in New Zealand, and a couple widely used overseas but yet to be launched here. For some products the authors’ findings support the marketing claims, but for others their analysis is damning: “…this product has been shown to be no better than water,” they write in one instance. Edmeades says the problem is selective use of data, or trials, and statistical analyses which make it impossible to tell if the product is having no effect, or the trial is simply not powerful enough to

detect the effect. “This problem can be objectively and pragmatically solved, when sufficient trial data are available, by using cumulative frequency distribution functions... this approach provides a more objective basis for determining the efficacy or otherwise of fertilisers,” the authors write. Edmeades admitted to Rural News that even this approach is open to abuse but, if all data is included, the reader can easily see the full range of results that a treatment or product achieves. They should also look for evidence that the presentation of the data has been peer reviewed by the scientific community. If it hasn’t, that should raise questions. Too often in recent years, such data hasn’t been available, even for some relatively mainstream products offered by large companies with the resources to fund such work. “There are three widely promoted ‘new age’ fertiliser products on the market without proper, independent peerreviewed science behind them,” he warns. From purely commercial companies that’s bad enough, but the fact some examples come from farmers’ own firms – the cooperatives – is even worse. “Until the farmers wise up and demand their cooperatives behave better, nothing will change.” This situation can be attributed to the Crown Research Act and abolition of MAF’s research division, which was responsible for testing products peddled to farm-

ers. “Under the CRI Act the CRIs don’t have that responsibility. It’s a problem of science policy as much as anything else.

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year have asked for papers testing products.... The science must be asserted against the odds and against the legal threats.”

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Conference registration REGISTRATIONS FOR this year’s New Zealand Grassland Association conference, November 6-8 in Gore, opened this month. The programme of papers, workshops and field trips, built around the conference theme ‘Opportunities in land use change’, plus registration forms, are on www.grassland.org.nz Registration is $485 for non members, $370 for members, or $200 for student non-members. Association annual membership is $85. Single day registrations are available at an earlybird rate of $150.

shed some independent scientific light, but those are few and far between, either because funds are in short supply or for politi-

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32 management

Farm performs through generations Traditions run strong in farming communities but that’s no reason not to embrace technologies that deliver results, as Peter Burke found out when he visited one East Coast station near Gisborne SEYMOUR IS A name synonymous with farming on the North Island’s upper East Coast. The family has farmed near Whangara since 1875 and Charlie and Kerry Seymour are the current generation. Their home property is about 30km up the coast road from Gisborne. Most of it is steep hill country but there are some nice flats and rolling country as well. The road to the homestead follows the

ridge line down to a sheltered spot overlooking part of the farm. Charlie and Kerry took over in 1980, first managing the trust that owned the property, then in a share farming arrangement and finally buying out the other members of the trust about four years ago. They also bought 400ha a little further north, at Tolaga Bay, about 15 years ago, giving them a total of

1100ha effective today. They run 6000 stock units: 1400 Coopworth ewes, 500 hoggets and 300 Angus cows. It’s a typical mix for the country but the Seymours are on a constant quest to increase production and adopt new technologies where it’s proven they’ll make a difference. Take the sheep. Back in the 1970’s, Charlie and his father did what many farmers did then: put a

Border Leicester ram over their Romney ewes to increase lambing percentage, which it did. But then it stuck at around 110% to 115%, so in the late 1990s they switched to Coopworth rams with resistance to facial eczema and better fertility. “FE is a big problem here with the muggy summers and the sheltered little valleys,” says Charlie Seymour. “The move to the FE resistant Coop-

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worths coincided with the advent of scanning and that’s when things really started to change.” Now, scanning out singles, twins and triplets has helped them achieve a lambing percentage of more than 170 percent. “We sell off the drys and over mate and sell most of our single bearing sheep. We have been mating hogget’s for a number of years now and they’re scanning at 120% to 130%, and lambing probably at 110%. “Scanning is a big part of our operation and has given us the ability to select the ewes that pro-

duce triplets and twins every year. “Interestingly, the number of ewes that produce triplets is growing,” he adds. It’s something Seymour accepts as a necessary step to increased productivity, and he’s developed a clear and successful strategy for dealing with them. An area of flats on the farm is especially set aside. The paddocks are smaller, with plenty of shelter and the ewes are run in small mobs. “This piece of land is tailor-made for them. We feed them very very well and pray that we don’t get

a storm.” The twins and triplets thrive on the lush pasture and have the Angus cows to thank for it. “We are known for our sheep, but it’s an holistic thing and the cows are a big part of it,” comments Kerry. “It’s very hard to measure just how productive a cow is, but they are absolutely vital for sheep.” Feeding stock well is a priority, and helps keep the animal health strategy simple. Ewes get a bolus and a 5 in 1 injection and “that’s about their lot,” says Charlie. to page 34

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Rural News // september 18, 2012

34 management

Scanning and triplet strategy from page 32

“They come in for shearing and weaning and they are big and healthy and so we don’t have to spend time trying to pick them up again and put weight on them. “We do struggle a bit with the two tooths who’ve had twin lambs to get them back up, but at that stage they probably get the best feed on the farm.” The Seymour’s like the cattle – partly because they are not too labour intensive to manage. They are set stocked with the sheep in the large hill side paddocks.

“We calve early – normally July and August. This is a deliberate strategy to mitigate against the dry summers that can hit the East Coast.” While the focus has been improving lambing percentage, calving percentage is also climbing. In the last couple of years it’s come from 85% to a record 93% last season. They also value the wool from their Coopworths which on average yield about 7kg/ head/year. The property has a strong fertiliser history of sulphur super or straight super-phosphate. The Seymour’s suc-

Four letter words

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Ask Charlie Seymour what his worst four letter word is and you’ll probably be shocked. It’s ‘tree’, usually pre-fixed with another four letter shocker: ‘pine’. This has nothing to do with legendary rugby players, but the swathes of dark green forest that are eating into the East Coast’s productive pasture. While he’s the first to admit that some of the country needs trees to prevent slips, the love affair with the pine has gone too far and it’s damaging the district, he believes. “Forestry has destroyed the communities. We’ve lost schools, shops and infrastructure in all directions. The [promised] employment by forestry has been a myth because a lot of the work is done by outsiders. There is some employment but it is not huge and the damage to the roads by logging trucks is horrendous.” Seymour questions the forestry industry’s sustainability and says typically the guy that grows the product gets the smallest slice of the cake. Kerry feels the same way and says good pastoral land is being lost to the pines. “I’ve seen some very good land put into trees. Often when a property is sold there is no separation of pasture. The whole lot is planted instead of separating out the better flats and keeping them in pasture.” They say you don’t have to be very clever to see food is the new oil, and everything possible should be being done to protect any land capable of producing food. And while they acknowledge the need for trees on some slopes, scars left by cyclone Bola have healed far faster than many said they would. If he had five minutes of Prime Minister John Key’s time, Charlie says he would tell him what he thinks of the Emissions Trading Scheme. He sees no logic in it and says it’s just a tax: at tax that is changing the face and productive capacity of the landscape. It’s a fair bet there’d be a few of these four letter words in there too!

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Rural News // september 18, 2012

36 management

Previous entrants laud awards experience AN D REW SWA L LOW

ANOTHER YEAR, another round of the Ballance Farm Environment Awards. Media releases from the awards’ parent body, the New Zealand Farm Environment Trust, have been flowing thick and fast since entries opened August 1 and in one region, Horizons, the bar has already come down. Elsewhere those keen to have their systems scrutinised

by an independent panel of judges have until October to put their hand up, with the exception of East Coast where the cut off is this Friday (September 21). East Coast was a new region for the awards in 2010, bringing the total regions involved to nine. “There are still some gaps and we are working on those,” NZFET general manager David Natzke told Rural News. However, with everything for the awards having to be

Kai Tegels and John Evans, Canterbury.

signed and sealed by July 1 for the following year’s events, it’s too late for any of the “gaps” – Auckland, Taranaki, Nelson/Tasman/Golden Bay, and West Coast – to be filled for the 2013 titles. This year’s awards do feature two new sponsors: Meridian and Donaghy’s. “We now have a full complement of sponsors with naming rights: Ballance and eight others,” comments Natzke. Meridian are backing an Energy Excellence Award. NZFE chairman Jim Cotman says the Trust identified the need for an energy award some time ago. “Efficient energy use is an important part of sustainable farming, so we are delighted Meridian has stepped up to the plate and sponsored this award.” Donaghy’s are behind the Farm Stewardship Award. A common theme from previous entrants, winners or not, is the value of the feedback they receive from judges. “It was all about the actual journey for me,” says John Evans, Canterbury.

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– John Evans “It wasn’t about the prizes, but it was a real honour to be judged by people I have looked up to in my farming career and be deemed by them as worthy of an award.” His ability to manage water efficiently on 245ha finishing and cropping farm, Tregynon, at Dorie, was recognised in his winning the WaterForce Integrated Management Award in the 2012 Canterbury BFEAs. The WaterForce Award recognises farmers who have developed and implemented integrated water management systems and processes for water used within their farming system. It takes into account the design of systems, efficiency of monitoring water use, water saved and cost-effectiveness. BFEA judges were impressed with Tregynon’s wellplanned irrigation infrastructure that includes a switching system that reduces pressure on the well water supply by ‘telling’ the second irrigator to start when the first one has finished its run. Evans says accurate monitoring is crucial for efficient water management. He uses a Christchurch-based company for monitoring soil moisture content and water use. Crops are planned so they don’t all need watering at once. “And if things get dry, we stop irrigating pasture and focus on the high-value crops.” A 2ha dam was recently completed, capable of holding about a week’s supply of water which will be “utilised at the time of greatest need”. Tregynon is run with the help of one fulltime labour unit and a student over summer. Evans is also assisted by his partner, Kai Tegels, and his 87-year-old father, Jack. As well as the WaterForce Award, Tregynon won the Ballance Nutrient Management Award. It was Evans’ first time in the Ballance Farm Environment Awards.

Rural News // september 18, 2012

management 37

Southern dairy ticks all boxes h ami s h ca r n achan

SOUTH COAST Dairy Ltd stirred up a storm of controversy when it proposed to convert a 200ha sheep and beef property on the wild and windswept Catlin Coast. But a little over three years on, the farm is established and you might wonder what all the fuss about perceived environmental impacts was for. While the term ‘sustainability’ is loosely bandied about and generally overused these days, this is one operation that ticks all the boxes when it comes to being financial, socially, and environmentally responsible. It goes against the dairy industry intensification mould, showing profitability is not necessarily correlated with cramming as many cows as possible onto each hectare. With its lighter stocking rate, South Coast Dairy (SCD) is seeing a pay-off through improved animal health and longevity, reduced inputs and labour requirements, and reduced environmental impact. “If you can handle the odd rough day, it’s a beautiful location out here,” says Miranda Hunter who, with her husband, is one of five equity partners in SCD. The wider landscape is indeed scenic, and the 200ha property itself a stunning entity in its own right, both aesthetically and, according to Hunter, as a business proposition. Some of the equity partners have a farming background – Hunter was Dairy NZ’s Southland/South Otago regional leader until recently. Others are from occupations ranging from local tourism to bank management. It was this diverse mix of skills which enabled them to see the potential in what was politely referred to as a “tired” sheep and beef farm before its transformation. “Turning it into somewhere that milked cows gave us enough cashflow to be able to do what we

had in mind for the property long term,” says Hunter. “If it remained a sheep and beef farm we wouldn’t have been able to do this.” She’s referring to vast improvements made over the past three years, the most immediately obvious being riparian management with extensive new fencing and wide buffer zones of plantings between paddocks, the new network of cattle races and the many small streams draining off the land. A large area of remnant podocarp forest has been fenced and placed under QEII Trust covenant. “We all knew what we wanted to achieve with this property from the outset, but didn’t know how to get there, so we involved people from Fish & Game, Environment Southland and DOC and Forest & Bird, the local iwi, and had Landcare coordinating. We told them we had a blank piece of paper and asked them to use their skills to give us a hand. “We didn’t want bare minimum distances for fence lines from streams and waterways on the property – we wanted riparian buffer zones that were going to be big enough to be effective. “It goes back to acknowledging the risks of this environment – we needed good riparian buffers because we didn’t want to get it wrong.” The result of this investment is significantly improved water quality which has been monitored since before the conversion and yearly thereafter. Have the environmental initiatives come at a cost to production? “No,” says Hunter. “Physically, it might be a loss, but from a production point of view there’s been no loss. On some of this sloping land, if you put a fence half-way down the cows are going to wear that incline bare anyway so it’s just practical stuff really. “I’m a practical farmer. This place makes money

and it looks after the environment. You can actually do that.” SCD winters just over 400 cows, not a high stocking rate but

the owners decided setting realistic limits was an environmental necessity. Hunter says the policy meets her practicality test

Farmer Miranda Hunter and Fish & Game’s Zane Moss discuss the farm’s plantings.

to page 38

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38 management

No risk taking with environment from page 37

with associated economic spin-offs. “It never will be a highly stocked farm – this is not the environment where you want to take risks.

“We’re at about 2.8SU/ ha. If you look at it from a straight financial view, one of the most expensive things in a Southland farming system is the cost of wintering animals. So, if you’re going to winter ani-

mals and do low kilos of milk solids per cow it’s not much of a winner financially. We prefer to have a lower stock policy, winter less and then produce more milk solids per cow. “That provides a whole

host of downstream benefits too. We need less young stock coming in because fewer animals are falling off the end [dying]. It winds the whole operation back but from a financial point of view

South Coast Dairy wanted more than bare minimum buffers.

we can make it work very well. This is very much along the lines of what

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they’re find❱❱ Area: 200ha total; 140ha ing at the Lineffective. coln Research ❱❱ Conversion: started 2010. Farm.” Planting and fencing almost Considercomplete three years on. ing, also, the ❱❱ Stock: 400 cows at 2.8SU/ha. better in-calf ❱❱ Weather: “Variable, on a good rate, low levels of day.” empties and fewer premature deaths, the regime is clearly better the pond near-empty by the end of February so it’s for animal welfare too, as low as possible heading saving on vet bills. into winter, leaving staff “If you operate more free to focus on calving cows you’ve got longer rather than worry about milking times and all effluent issues at this time those issues start kicking in. It’s also better from the of year. “Digging a hole and staffs’ point of view.” just filing it doesn’t cut There are advanthe mustard. You’ve got to tages in effluent managehave well-managed efflument too, another area ent storage.” SCD has taped. A weepHunter says the coning wall steadily separates sortium behind South solids from liquid, with Coast Dairy is proud of sufficient storage that the K-line needs fewer than 30 what they’ve achieved with the farm, but insists days/year to clear it. “it’s just practical stuff”. “We’ve put in two sets “Personally I would of pods so when condisay we are at a good tions are right they can responsible level of be putting out at low farm practice here, but rates but covering a large we’re not doing anything area [reducing the risk of particularly flash. ponding]. “I hope that when the “It’s made it easy to likes of Fish & Game and manage. The extra set DOC and ES drive past of pods was only $4000 they take some ownership which isn’t big money in what’s been achieved in the scheme of things because their input has and not when you also been invaluable.” consider the benefits of • Hamish Carnachan is Fish making work a bit easier & Games communications for staff.” manager. Farm policy is to have

GET SOCIAL Keep up with the latest stories from Rural News & Dairy News by following us on:

facebook.com/ruralnewsgroup Components shown here are examples only. John Deere Reman components will vary by machine and model, and our product range is currently expanding to meet increasing demand. Check with your John Deere dealer for availability of Reman components for your machine or visit JohnDeere.co.nz/Reman

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Rural News // september 18, 2012

management 39

No ‘snake oil’ calf rearing resource AN D REW SWA L LOW

REARING CALVES? Then a new independent source of calf rearing information could be worth a look. The website www.nzcalfrearing.com is the brainchild of calf rearing guru, Paul Muir, of On-Farm Research, Hawkes Bay. It’s funded by Dairy NZ and pulls together years of research by Muir and others on calf rearing at Poukawa Research Station and elsewhere, much of it funded by Beef + Lamb New Zealand predecessor, Meat and Wool New Zealand, plus other material Muir sees as worthwhile. “If you Google calf scours you get 250,000 references and people really don’t know the good information from those selling snake oil.” Muir has “distilled” his and others research into about 30 fact sheets, presented in groups under

the topics: getting started; health; feeding; targets. Fact sheets can be downloaded individually or by group. There’s also a library of mostly media articles, plus an occasional text book reference or link to other websites. “The references to the text books are if you really want to get into the detail. The key with all of it is that I am happy with the information.” To download material users must register, but Muir says there’s no commercial intention behind that. “There are no ads on the website. It’s an information website and there’s a discussion forum function on Facebook.” Registration on Facebook is necessary to access that. As of last week the site had attracted 61 “likes” – a Facebook tool for users to automatically

get updates from that page – though the discussion on Facebook is limited to date. Dairy NZ development team leader, animal husbandry and welfare, Nita Harding, says the aim of funding nzcalfrearing. com is to provide an independent, science-based reference that’s readily

available to dairy farmers and others rearing calves. “It’s mostly been a case of drawing together existing work and putting it all together in one place. Also it’s electronically available rather than people having hard copy information that they’ve got to store and might not be able to find so easily

when they need it.” The site’s launch also fits in with the big picture objective of growing better heifers which will yield a long-term productivity boost for the industry. “To get the best out of cows they need to enter the herd well-grown,” she stresses.

Years of rearing research is gathered into 30 factsheets.

To make sure clover is abundant in your pasture what would you do?

Weaning tips A timely example of the one-page factsheets on the website is one on weaning. It lists eight key points to heed when cutting out the milk, supported by a bullet-pointed discussion of timing depending on milk feeding system and other points, such as ensuring pasture calves go onto is clean and high quality. “Often paddocks close to the rearing facility are weed infested and used for effluent,” it notes. Shelter, gradual reduction of milk, and meal regimes are also tackled. When to weaning should be determined by individual calf weights – what weight will depend on breed and feed system – and meal intakes.

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Rural News // september 18, 2012

40 management

Plan your fungicide strategy and rew swa llow

NO FUNGICIDE input will create yield: all you can do is limit the loss of potential output. That was one of the fundamental principles put across to growers last week by the Foundation of Arable Research during one of three Focus on Fungicides training courses. The half-day sessions, run in Timaru, Rolleston and Palmerston North, took growers on a step-by-step journey through cereal crop development and yield, disease development, fungicide strategies, applications, modes of action, and resistance management. “The first thing to point out is fungicides do not create yield,” stressed

research coordinator Nick Poole to the Timaru workshop. “They only protect something you will inherently get from your crop depending on the water and nutrients available to it.” That said, as Poole later pointed out, some fungicides, notably the azoles such as Opus (epoxiconazole) or Proline (prothiaconazole), do have some curative or “kick-back” action, in that they are able to knock-out disease already present in the plant. But such action is limited and most yield response from fungicide treatments comes from protecting leaves from further infection. “There is no substitute for applying fungicide to the leaf you wish to protect,” stressed Poole.

Contribution to yield

Wheat

Barley

Ear (+leaf sheat & awns in barley)

22%

22-38%

Flag leaf

43%

5-9%

Leaf 2

23%

20-40%

Leaf 3

10-15%

Leaf 4

N/A

Source: FAR/UK HGCA

Doing that requires an understanding of crop development, and workshop delegates got to cut up wheat and barley plants to determine which leaves were emerging, and how that correlates with growth stage (GS). As a rule in wheat leaf 4 emerges at GS 30-31; leaf 3 at GS32; leaf 2 with GS33, and flag leaf with GS39. “But this doesn’t work for very late sown, rapidly developing crops,” warned Poole. “Leaves and nodes of these tend to get out of synch. In a JuneJuly sown crop at GS32 you’ll find you’ve got leaf two coming out. That needs care.” To be sure, leaves should be FAR’s Nick Poole demonstrates dissected back to the embryo ear how to identify the main stem. to identify exactly which is the most recently emerged: no easy task as with leaf three emerging, the crop situation, affecting the weighting flag leaf is just a vestigial flake and even of fungicide applications. “The point is it’s not fixed in stone,” leaf 2 is still little more than a centimestressed Poole. “When you think about tre long. In wheats, flag leaf contributes most your fungicide strategies you need to to yield, consequently it’s the most think about what leaves you are trying important leaf to protect. However, how to put that fungicide on.” Knowing wheat leaves typically take much it contributes to yield depends on

110-120 day degrees* to emerge, whereas barleys come out in 95-100 day degrees, will help anticipate application timings. Consequently barleys have a shorter gap between the start of stem elongation and ear emergence. “This is why we traditionally talk about growth stage 30-31 for barley T1s whereas we talk about growth stage 31-32 for wheat.” Another key factor in the fungicide strategy is a cultivar’s disease resistance ratings, and the likely pathogens you are trying to prevent. Then there’s the persistence of the product to consider, and whether one higher rate, or two or even three split lower doses would work better. When it comes to multiple doses the long-term efficacy of products must be considered too: more than two applications of a strobilurin or SDHI product in the same season is considered too many due to the risk of promoting fungicide resistant strains of disease. * Sum of max plus min temp each day, divided by two.

Rural News // september 18, 2012

animal health 41

Border disease in bull no cause for alarm NEW ZEALAND’S first confirmed case of Border disease in a bull is not a cause for alarm, say vets involved in researching the incident. However, it is another reason to ensure bulls are tested for Bovine viral diarrhoea (BVD), a closely related disease, and that the test covers Border disease as well. The infected bull, a Belted Galloway, was detected following a breeding failure in dairy heifers on a Taranaki farm in 2010. “The bull came from a region in the south [of the South Island] where Border disease is endemic in sheep flocks,” Andrew Weir, of Eltham Vet Services, told Rural News. “It’s a classical sheep and beef farm that also sells bulls for service breeding.” Both Border disease, and BVD are caused by strains of Pestivirus, the virus also responsible for Classical Swine Fever. In sheep Border disease is more widely known as Hairy shaker disease, causing reproductive failure or poorly coordinated lambs that don’t do well or die. However, as with BVD, if infection of a dam in early pregnancy doesn’t kill the foetus, it can result in a “persistent infector” – a lamb which makes it through to adulthood car-

rying, spreading and perpetuating the virus. The bull in the Taranaki incident, according to a report by Weir and others in the September issue of the New Zealand Veterinary Journal, was small for a three-year-old and lacked typical masculine characteristics such as a thick neck. It’s scrotal circumference was 22cm, well below the accepted 34cm threshold for a bull of over two years. The farm of origin had a history of BVD in cattle, though a 100% breeding success rate. Border disease status of its 2000 ewes was unknown but scanning and lambing results were good, with 164% and 172% tailed in 2008/9 and 2009/10 seasons respectively. After Border disease was detected in the bull sold to Taranaki tests on the southern farm’s flock found 62% tested positive to Border disease, with more older sheep having been exposed than younger. Border disease wasn’t found in the beef herd but the NZVJ authors note exposure to the disease from the sheep flock must have been “reasonably frequent” as cattle and sheep shared grazing during pregnancy. As that’s a common scenario in Southland and Otago, where Border disease is considered to be endemic, “it is likely that [Border disease] infec-

Don’t let BVD undermine your profitability this season

tion in cattle occurs from time to time without being detected.” They also note “the risk to the dairy industry of infection with [Border disease] comes from beef breeds of bulls,” noting

dairy bulls do not generally graze with sheep, and fewer beef herds test for BVD than do dairy. “But as far as a takehome message goes, I don’t think we need to worry too much about

this,” Weir told Rural News. “This is still likely quite a rare event… I’d be a lot more worried about making sure my bulls are BVD free than worrying about Border disease.”

Andrew Weir, Eltham Vet Services.

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Rural News // september 18, 2012

42 animal health

Fewer flies on speckly cows alan harman

SPOTTY CATTLE are less susceptible to certain biting flies than those with plain hides, research in Hungary reported in the journal Plos One shows.

Working with the University of Girona in Spain, and Lund University in Sweden, researchers from Eötvös University and Hungary’s Academy of Sciences did field tests with glue-covered boards

painted with varying numbers of spots, but always the same ratio of black/ brown to white. The more small spots, the fewer flies stuck. Repeating the experiment with a glue-covered

Hungarian research found plain cows suffered more bites.

cow model gave the same result: few flies landed on spotty models while a

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eight spots attracted 26%, an all white one 9%, a 16-spot model 8%, and a 64-spot model just 2%. The researchers say the result is because Tabanid flies lay eggs in pools of water which they detect because light reflected off water is polarised. Darkhaired cattle hide polarises light more than white so flies are more attracted

to darker animals. Reflections off dark parts are at different angles and degrees of polarisation to those off white which when combined on a spotty animal disrupts the attraction. Tabanids transmit several serious diseases and can disrupt grazing enough to slash milk or meat production.

Water source and scours link AUSTRALIAN RESEARCH shows a link between lamb scours and their water source. Murdoch University’s Joshua Sweeny found recent scours reported on 64.8% of farms in WA with an average of 6.9% of lambs affected on each farm, with higher rates in higher rainfall areas. “We traced this back to the drinking water source, since lamb flocks supplied with dam water were 117 times more likely to have observed diarrhoea or breech fleece soiling,” says Sweeny. This could be due to increased run-off contaminants compared to lambs drinking water from a bore or scheme source, she suggests. “Faecal material, fertilisers and pesticide residues can be washed from pastures into open sources following moderate or heavy rainfall, whereas bore and scheme water is better protected.” Sweeny says better understanding of risk factors and causes will lead to better management of outbreaks. Producers tended to increase anthelmintic treatments for parasites when dealing with diarrhoea in a flock, even though parasites were not necessarily the cause, she notes. “This sort of overuse is contributing to increased resistance in worm populations.” Besides farm production losses, faecal soiling of breech fleece is a significant economic and welfare problem causing increased carcase contamination, risk of meat spoilage and human food poisoning.

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animal health 43

Dose your dogs check all others P E TE R BU R K E

FARMERS SHOULD take a tougher line to stop dogs not treated for sheep measles coming on their farms, says Ovis Management project manager Dan Lynch. Ovis Management is owned by the Meat Industry Association and is responsible for providing advice to vets and farmers on the problem of sheep measles. Lynch has the role of promoting a programme that keeps ovis at a level where it isn’t a problem. Speaking at a recent BLNZ field day, Lynch pointed out that ‘casual’ dogs coming on to a farm

and which are not treated for sheep measles pose a real risk. He says farmers should either ban them completely or require proof from owners that the dogs have been dosed. While Ovis is not an

issue for many farmers, unfortunately there have been some ‘flare ups’ of the disease on some properties. “In extreme cases they suffer condemned carcasses at the works or the presence of Ovis in the meat will cause carcasses to be downgraded. The whole issue with Ovis is that it provides a risk to markets overseas. Sending parasitic cysts in our meat overseas is untenable,” he warns. If more than five cysts are found in a carcass it will be condemned. Lynch says fortunately there are not a lot of these, but last year when there were storms in the

Lower North Island there were some significant outbreaks of sheep measles on farms, high winds aiding spread. “A dog defecating can put out hundreds of thousands of eggs onto the pasture. Each tapeworm

Sheep measles reminders

Be aware of potential carcase and export reputation damage. Have an effective dosing programme for own dogs. Ensure dogs coming onto property are treated or prohibited.

segment contains 60,00 to 80,000 eggs and a dog will shed two to three segments a day from that one tape worm and that will drift across the farm.” Sheep measles is easily be contracted by dogs which are fed raw sheep meat, which is why it’s important meat is either cooked or frozen for 10 days to kill the ovis cysts. “While farmers can feed their dogs biscuits or processed food, the reality is that sheepmeat does provide a large part of a farm dog’s diet.” Dosing is imperative and is not expensive, he adds. Drugs containing Praziquantel are highly effective but must be used monthly. “If you dose at say 90 days, which is quite popular, you in fact have a parasite that matures in 35 days so there is window where the dog could be shedding eggs before it’s dosed again.”

And it’s not just farm dogs that need dosing: pets can pose problems too, he points out. “They are often overlooked, but pet dogs tend to have freedom of the farm. They travel around the farm in the truck and may not be controlled and have access to sheep,” he says. Traded lambs are another potential ovis spread mechanism, particularly where they’re brought onto cropping farms which run little stock during the year and so don’t dose dogs, who as a result may be spreading ovis eggs. “Lambs that have never been exposed to sheep measles and have no immunity to it are highly susceptible and can easily go to the works heavily infected. It’s important with trading and finishing operations that there is a good dog dosing system in place so that lambs come onto clean pastures.”

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Rural News // september 18, 2012

44 animal health

Good riddance to hydatids J o hn st i r li ng

FOR DECADES hydatids (Echinococcus granulosus) was a killer disease that affected humans and animals of all ages. It took the best part of 50 years to eradicate. Hydatids is the tapeworm of Echinococcus, including all stages of development, from egg to worm. The sheep and the dog are major partners in its spread. Its eradication here reflects the determination of those who would accept nothing less than total elimination of the pest. While early records are not extensive, from 1958 to 1961, when the National Hydatids Council was

29 May 2012 7 May 2012

being formed, there were 299 new human cases, and 23 deaths. In the period from 1950 to 1953 there were 377 new human cases and 58 deaths. Figures such as these motivated the creation of National Hydatids Council. Hydatids was recognised as a human health hazard in the early 1900s. There were local attempts to control the disease but these usually ended up as well meaning failures. By the late 1950s it was accepted any success required a concerted national effort. It was a strategy that worked and included an extensive infrastructure of well-trained local authority hydatids and

dog control officers, national hydatids council field advisory officers, and research and education programmes. It was a vision that attracted many of the country’s top rural leaders and scientists such as Tom McCristell, David Heath, Ira Cunningham and Michael Gemmell. For many farmers often the closest involvement they would get was the six weekly trip with their dogs to the ‘dosing strip’. For many it became an important social gathering. But the dosing strip was only part of a carefully planned exercise that involved farmers and other dog owners. Former South Otago farmer Geoff Neilson has

528 lambs processed 98 infected 18.6% 418 lambs processed 131 infected 31.3%

Geoff Neilson

been part of the campaign for 40 years, starting out as Young Farmers Club delegate in 1971 and completing his term as chairman of the National Hydatids Council at the time of its demise. New Zealand farmers gave the eradication programme their full support without which it would have ended up in a forgotten filing cabinet. Neilson says the demise of hydatids, achieved in 1991, means the country, and

Have you reviewed your sheep measles programme lately???

especially its children, are now safe from a needless killer disease. He says the success of the eradication plan was due to many features including strong leaders that related well with farmers. Equally important was effective communication. Pulling it all together was the belief that it was an achievable goal. Most of the funding was from dog registrations. Behind the scenes were highly effective pressure groups such as the Women’s Division of Federated Farmers. The drawing of a weeping rocking horse being put up for sale became the Council’s hard hitting symbol. The success of the campaign was such that when hydatids eradication looked certain the decision was made, in early

1980, to bring in another disease under the same banner. This was Taenia Ovis, commonly called sheep measles. The T. Ovis programme was almost identical to the hydatids programme, with emphasis on proper dog feeding, offal being cooked or disposed of in such a way that was inaccessible to dogs. There were improved drugs such as Droncit and blood tests that identified problem dogs, though the problems were usually people not dogs. Hydatids eradication was undertaken through an Act of Parliament. When Government pulled the pin in the infamous Richardson budget of 1991 the structure around eradication fell over. Neilson says there was a vacuum for two years. Many farmers maintained

their programmes voluntarily but the incidence of T.Ovis began increasing. Meat companies were keen to see T.Ovis either eradicated or controlled. T.Ovis is not a killer disease, but it leaves unattractive cysts in meat. For the meat companies this was a marketing problem. Neilson was approached to help set up a voluntary organisation that brought together meat companies and sheep farmers. Ovis Management Ltd began operating in 1992 and is now a wholly owned subsidiary of the NZ Meat Industry Association. At that time infections found at slaughter were 7% and rising. Today they’re 0.53%. It reflects how sheep farmers and the meat industry will get behind something they believe in.

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Rural News // september 18, 2012

animal health 45

LIC stands by DNAproven a n dr ew swa llow

IN THE face of calls for greater compensation for farmers who used DNA-proven bull Matrix, LIC says it is sticking with DNA-proven as a testing system and such bulls will remain for sale. “LIC remains committed to the belief that genomics is the way of the future and there is nothing else on the horizon which can compare with the benefits or boost to genetic gain that genomics offers,” general manager genetics, Peter Gatley, told Rural News. Gatley says there’s been no drop-off in demand for DNA Proven semen but it’s important to emphasise that farmers have a choice. “Those wanting elite sires years ahead of traditional sire proving can do so, while others are able to utilise Daughter Proven semen. We will use genomics ourselves to pre-screen all bulls purchased by LIC but beyond that, Peter Gatley it’s simply a matter of farmer choice.” Gatley points out LIC isn’t alone in its faith in genomics as a selection tool. Data presented at a conference in Melbourne last year showed every major dairy nation using genomically selected young sires with market share ranging from 25 to 50%. “Uptake is even higher now. In the not too distant future, we expect genomics to be able to identify naturally occurring defects before carrying out any inseminations at all. That is yet another benefit of this technology.” LIC is crediting the cost of all semen and inseminations from Matrix. “We stand by the decision that compensation is not appropriate but the LIC Board believes that a gesture of goodwill is the right thing to do for the farmers who have daughters of the bull, Matrix,” says LIC Chairman Murray King. “We understand the impact and share the frustration of losing otherwise healthy calves and have considered farmer suggestions that it is appropriate to make a tangible gesture to the farmers impacted by this issue, over and above the free sampling and calf DNA testing service we have made available to farmers. “On further reflection, the LIC Board believes it is appropriate for LIC to credit in full the cost of every insemination made by Matrix, regardless of the fact that half of the heifer progeny are perfectly healthy.” Farmers affected should have received a letter outlining the credit which will show in their September statements.

Colony collapse claim ‘unlikely’ The National Beekeepers’ Association of New Zealand says it’s very unlikely colony collapse disorder (CCD) is happening in New Zealand. Responding to a New Zealand Herald report last week that Auckland hive supplier Beezthingz had lost 40 of 50 hives in what could be New Zealand’s first case of CCD, NBA chief executive said it was probably the result of increasing resistance to varroa treatments. “While that’s not unexpected, it is still a concern,” said Paul, who is calling for a nationwide bee health survey to be run by the Ministry for Primary Industries and beekeeping industry. “We need scientific data that will allow us to track trends and identify potential problems, like significant hive losses, before it becomes too late.”

Toxo scare stirs up a storm in the UK A british NEWSPAPER report linking Toxoplasmosis – a once common cause of abortion in sheep – and schizophrenia has prompted a call for calm by the British Veterinary Association. The BVA says the report, which focuses on the risk of infection from cats rather than sheep, contains important reminders on good personal hygiene. “The biggest threat is to preg-

nant women and those who are immuno-compromised, which we have known for some time,” says BVA Past President and veterinary surgeon Harvey Locke. Most people infected are asymptomatic but 10-20% show transient flu-like symptoms. The BVA’s maternity guidance warns Toxoplasmosis caught during pregnancy can cause an infection in the unborn baby resulting

in eye problems and brain abnormalities. New Zealand Veterinary Association resources manager Wayne Ricketts says Toxo’ was once a common cause of lamb abortion here but vaccines mean it is much less so today. “There’s the occasional outbreak in unvaccinated flocks.” Nonetheless, antibody tests show about 70% of adult people

have been infected at some stage. Pregnant women should avoid handling aborted material from sheep but the risk of infection from cat faeces, for example through cysts released into the soil and picked up while gardening, is greater, he says. Ricketts echoes BVA advice to use protective clothing (gloves) and a strict hygiene regime to reduce the risk.

Rural News // september 18, 2012

46 machinery & products

Farmer gives the brush to huge paint job PAINTING his large, historic woolshed without the particular service of a property maintenance company would have been impossible, says a southern Hawkes Bay station owner. Dan Ramsden and family own Moanaroa Station, a 1500ha sheep and beef farm 80km east of Dannevirke. The property, in Mrs Ramsden’s family since 1908, has several historically important buildings dating back to 1883. They include a 929m2 homestead and a woolshed capable of holding 1400 sheep. The woolshed was built by Murray, Roberts & Co Ltd, a company that once owned 8000ha of farmland. Ramsden wanted the buildings well maintained,

Before

but their size precluded painting even one building each year – just too expensive. “The last time the woolshed was painted was between 1992 and 93. We did the roof one year and the rest of the building the next year.” Instead Ramsden signed a seven-year contract with Programmed Property Services (Programmed) to paint and maintain all the farm

buildings. “If it had been another firm we would have had to pay the money up front; we wouldn’t have been able to cope with that.” The contract was for Programmed’s ‘Classic Program,’ says David Bleackley, the company’s branch manager. This provides for Programmed to do any necessary major work in the first year then maintenance work for the

➮

remainder of the contract period. The cost of the first year’s major work is spread over the full duration of the contract, Bleackley explained. “We let the farmer spread the cost, not the work and put together flexible maintenance programmes that fit farmers’ demands.” This proved handy during a wetter-thannormal autumn without

COMPRIMA F155XC Semi Variable Chamber Baler

After

enough sunshine to dry paint, Ramsden says. “We ran out of good weather at the end of autumn and pulled the plug on doing the homestead because paint doesn’t dry as well in winter.” The family had learned of the company from one

of its employees. They are impressed so far. “The work has been done fast and efficiently,” Ramsden says. Programmed offers its customers peace of mind over maintenance, Bleakley points out. “With most contractors, once the job

is done there’s little regard for ongoing maintenance work. With Programmed you have a flexible, signed agreement both parties adhere to and any painting is financially guaranteed for the full term.” www.programmed.co.nz

Lower North Island station has rich history FEW NORTH Island properties can claim the heritage of Moanaroa Station, says owner Dan Ramsden. The property was broken in by Murray, Roberts & Co Ltd, a land and wool agent that once owned 8000ha in the North and South Island. The 929m2 homestead and a woolshed capable of holding 1400 sheep were built at this time.

The property has been owned by his wife Barbara’s family since 1908, when it was bought by her grandfather Phill Brick Smith and the Humphrey family, lawyers in Nelson. The partnership started the Moanaroa herd, one of the oldest Angus herds in New Zealand. Mr Smith bought out the Humphreys in 1936.

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Rural News // september 18, 2012

machinery & products 47

These boots are made for working! A LEATHER workboot new from Skellerup is a worthy complement to the maker’s top-selling Red Band gumboot, the company says. It has made footwear for at least 70 years. Four styles of Red Band leather workboots are offered, including safety or non-safety models and slip-on and lace-up versions. Farmers have field-trialled them for 18 months. Sheep farmer Brian Holley tried the slip-on work boots at his farm near Kerikeri, Far North. “These boots have been fantastic on all the land I work on. They are probably the most comfortable work boots I have worn. They have little wear considering the amount of use I have given them. The workboots also have great support, especially for a slip-on boot.”

synthetic liners edging out 'clay' GEOMEMBRANES – or synthetic pond liners – can last 20 years in most locations, provided they are correctly installed. Such liners are now edging out ‘clay lined’ ponds, especially in dairying applications, says DairyNZ. Pond liners are marketed in a number of chemistry types and a variety of thicknesses. Some farm dairy effluent ponds are lined with very thin – often inappropriate – geomembrane types and their durability and performance has been lacking. Thicker geomembranes are often the answer. The smoothness of the surface on which the liner lies, and how well it is fastened to the embankment, also matters.

Cutting-edge efﬁciency

“Red Band workboots have been tried and tested in all types of farming conditions and we’re pleased with the results.” – Perry Davis Cambridge drystock farmer Steve van der Valk is said to be convinced Red Band workboots are the best he has owned. “They didn’t have to be broken in like other boots I have had. Before long they just felt as though they were part of me. The workboots have fantastic grip on all the surfaces I work on.” Kerry Bayliss trialled the lace-up boots on his sheep and beef property near Taumarunui, King Country. “The most comfortable, useful workboots I’ve worn. I find the lace-locking system

easy to use and they are water resistant and robust.” Skellerup says the Red Band workboots – like all its boots – are made to fit New Zealanders’ specific foot shapes; they are typically wider than human feet elsewhere in the world. Red Band’s guaranteed quality and reliability is evident in the new leather work boot, the company says. “Farmers have asked us for some time to introduce a Red Band leather workboot, national manager Perry Davis says. “Red Band workboots have been tried and tested in all types of farming conditions and we’re pleased with the results. “We’ve taken the time to get it right, almost overengineering all aspects of the workboots from the triple-stitched, glued seams to the 1000-Neuton breaking strain laces.” www.redband.co.nz

The John Deere 7R Series Tractors and 2012 8R Series Tractors are loaded with cutting-edge innovations. Like their front hitch and PTO, plus their integrated GreenStar™ 3 technology*. This setup makes it easy for you to use the John Deere Triple-Mounted Mower Conditioner and AutoTrac™ guidance to cut 16 hectares an hour – hands-free. Now that’s cutting-edge efﬁciency. The John Deere 7R Series Tractors with 147-206 kW of engine power (200-280 hp†) and 2012 8R Series Tractors with 173-265 kW of engine power (235-360 hp†). See your local John Deere dealer for details. Nothing Runs Like A Deere™.

*Front hitch and PTO are optional equipment. GS3 apps require activation fee. † Rated engine hp (ISO) per 97/68/EC.

0800 303 100 | JohnDeere.co.nz

Rural News // september 18, 2012

48 machinery & products

Grain storage easy and cheaper ga r eth g i l latt

MOULDED PLASTIC grain storage silos have proven affordable and easy to install for a Northland dairy farmer and a stock food company. Kaitaia dairy farmer David Polglaze (850 cows on 250ha) had a 16-tonne steel silo for grain feed but needed more capacity. He bought a 23-tonne rotationally moulded polyethylene SmartSilo made by Advantage Plastics, Rangiora, to increase capacity to 39 tonnes. No professional installer was needed, as for a steel silo, Polglaze says. “Installation was something

I could do myself.” And the SmartSilo had features found on a steel silo including a sight glass and a front loading tap. The SmartSilo’s delivered price was much less than the steel alternatives, says Polglaze. “Affordable when you compare what it holds for the price.” He has used the 23 tonne silo for three years. It still looks like new and suffers none of the condensation problems of a steel silo. Elsewhere in Kaitaia, Selwyn Garton, manager of North Country Grains, says he initially got two 23-tonne SmartSilos because of their dimensions. At 3m wide x 6.2m high they

were the only storage available that could take a truckload of product without taking up too much room. Garton found setting up the silos was straightforward. “These plastic silos were easy to put up. We just needed to bold together the rings and bases and then lift the silos into place.” North Country Grains sells stockfood from Auckland to Cape Reinga. Garton says the two silos have stored at least 150 tonnes of soyabean meal and 150 tonnes of dried brewers grain for 18 months without problems. Tel. 0800 668 534 www.advantageplastics.co.nz

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Rural News // september 18, 2012

machinery & products 49

Irrigator checks DAMAGE TO farm irrigators costs their owners and insurers serious money each year. A campaign launched recently by FMG and Irrigation New Zealand is aimed at stemming those losses. Farmers get a checklist from Irrigation New Zealand and stickers saying ‘check the track to make it back’ – a reminder to operators to check the paddock before starting up the irrigator. Packs are available from FMG representatives. FMG general manager of advice

Garth Cleland (DLF Seeds) presents the Apple pack to Barrie and Sharon Newport.

and insurance Conrad Wilkshire says every year about 100 FMG clients suffer loss or damage to their irrigator, most preventable. Irrigation New Zealand chief executive Andrew Curtis says the campaign is timely as farmers are just starting to think about irrigation for the coming season. “Ensuring irrigation systems are in good condition is all about preparation. September is the key month for maintenance and if farmers undertake the right checks

and balances now, the rest of the season will run smoothly. If not the fallout can be very costly. “Our checklist reminds farmers and their staff of the simple actions they can take to prevent problems…. Making sure the irrigation season gets underway safely and efficiently will mean less system downtime improving productivity and returns this summer.” Dirt piles, overgrown hedges, motorbikes, tractors and fences can cause devastation if they get

in the irrigator’s track. Repairs can cost thousands and the interruption to business production can have a huge impact. Practical tips: do a quick walk following the path the irrigator will travel before flicking the on switch. All it can take to damage an irrigator is a dip in the track caused by a washout or a tyre punctured by a fencing iron left lying in the paddock. Strong winds can also cause massive damage, particularly nor’westers in Canterbury.

Ryegrass is a double winner SOUTHLAND FARMERS Barrie and Sharon Newport are doubly pleased they started using a new ryegrass from DLF Seeds, the company says. Their pastures are performing and they have won an Apple technology package. In late spring 2011, the Newports planted a trial of DLF Seeds’ new ryegrass Jeta AR1 on their 760cow dairy farm a few kilometres north of Gore. By the second grazing, it was producing more than the Italian ryegrasses planted beside it. “The summer was quite dry, but despite this, over a 30 day period following grazing, it averaged 110kgDM/ha/day – outstanding really,” says Barrie. On the back of the trial results, they planted more Jeta pasture in autumn 2012, giving them entry to a prize draw, which they won. Sharon has put the iPad to frequent and good use, and Barrie likes the iPhone, says DLF Seeds. Jeta is a tetraploid ryegrass, the first cultivar bred by DLF Seeds in New Zealand. “It was formed by combining the best genetics from New Zealand and Europe, and released after three years of testing that proved it was 6% better than other popular ryegrasses. It is an ideal grass for farmers who want to maximise pasture and stock performance, and still achieve economic persistence.” Jeta AR1 can be used in most environments, and has performed well on high performance dairy farms such as the Newports, and in drier inland properties under sheep, cattle and deer grazing. Tel. 021 413 602 gm@dlfseeds.co.nz

MS1265

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Rural News // september 18, 2012

50 machinery & products

Mowers and rakes make a measurable difference NEW MASSEY Ferguson mowers and rakes are said to be making a measurable difference to Phil Hawke’s Waikato contracting busi-

ness. Chiefly he bales silage, 30,000 big round and square bales being a typical annual output. Last September Hawke

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bought a Massey Ferguson DM1330 front mower, an MF DM1364 rear mower and two new Massey Ferguson RK3877 rakes for the business, Phil Hawke Contracting Ltd, Hinuera, 7km south of Matamata. He had not owned a Massey Ferguson mower before, nor a front mower. “Nobody else does a 4m-wide back mower. We can cover 7m at a time, whereas the normal combination is 6m with a 3m-wide front mower,” he says. “It makes a big difference. We’re doing 5ha/ hour, and that saves us heaps of time.” He wondered how a front mower would work out but – no problems. “I’ve got the Fendt tractor with the front linkage. Now I can send one tractor out and it covers what two separate mowers would cover.” The mowers are effective on heavy crops, Hawke says. “Having the 4.0m back mower is a major plus. My biggest worry was its ability to follow the contour but it runs under pressure, which forces it into the ground. It’s easy and quick.” The two new mowers

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MS1352

A new Massey Ferguson front-rear mower combination and rakes are helping Waikato contractor Phil Hawke’s boost the efficiency of his baling business.

have made a difference to his business. “They’ve improved our efficiency because we can mow in the mornings and come back and bale in the afternoon. Before now we had two mowers going out and they sometimes weren’t finished in time to start baling.” Hawke bought the first of his two Massey Ferguson RD3877 rakes when someone else’s purchase did not eventuate

at Matamata Tractors and Machinery. He took the rake home, and bought a second rake soon after. “Comparing the Massey Ferguson rakes to other rakes I’ve had, I would say they’re stronger and easier to operate. We run them in front of the round and square balers and go out to 7.2m wide. The round balers need a wider windrow and we have to shorten them up for the square baler.”

Hawke particularly likes the way the tines are set up and how easy it is to replace one if it breaks. “If we did have to replace one, it would be a five-minute job, compared to a halfhour job with our old rake. And even if you bend an arm there’s only one pin to pull out to straighten it.” The other new addition to Hawke’s fleet is a Fendt 818 tractor, which he’s now operating alongside the second-hand Fendt 718

he bought a year ago. “I found the 718 easy to drive and economical and that’s why I bought the 818. They’re initially expensive to buy but you save so much in fuel and ease of operation and they’re so well made.” The 718 pulls a new baler, while the 818 is used for mowing, square baling and pulling a large undersower. Both tractors have Vario transmission, making driving easy.

Rural News // september 18, 2012

machinery & products 51

Mower’s lift control an advantage KUHN’S LATEST centrally articulated mounted mower to use the maker’s patented ‘lift control’ facility is on offer for this season. The GMD 2810 disc mower (2.67m working width) uses Kuhn’s new-generation Optidisc cutter bar, designed to improve quality of cutting, increase protection and durability, and reduce maintenance, the distributor says. “Central articulation gives this straight mower the advantages of improved ground following and even load distribution, ensuring accurate cutting even at high speeds. “Lift control is an integrated hydraulic linkage enabling the cutter bar to be lifted out of work on headlands (to a clearance of 400mm) without raising the 3-point linkage. Ground clearance is also constant over the whole width of the machine.” Non-stop break-back control is also included on the GMD 2810, Kuhn says, minimising the risk or inconvenience of damage in the event of hitting an obstacle. The maker’s new Fast-Fit blades system are fitted as standard. Tel. 0800 585 007 www.kuhn.co.nz

‘Your morning weather, sir’ A NEW free smartphone app – ‘Farming weather forecast and services by New Holland Agriculture’ – is believed the first such offer to farmers, the company says. It is distinct from purely product-based apps now available. The ‘NH weather’ app, optimised for iPhones and downloadable from the Apple Store, is available also for Android smartphones. The app enables a farmer each morning to consult a raft of weather data from 24-hour to long-range forecasts, plus industry news and local dealer information offerings. ‘NH weather’ provides “exceptionally accurate” local forecasts, the company

says. Data is drawn from 71,000 weather stations worldwide, and by using geo-location technology, data is received and analysed from the closest sub-station. Data include actual and ‘feels like’ temperature, pressure, wind speed and direction, and evaporation rate. Historical data can be accessed to plot trends and manage seasonal working patterns. Long range, seven day forecasting helps the user decide when best to sow, harvest or fertilise. Sites can be stored and recalled. For users working in volatile climates, or those hit by unpredictable weather swings, an alert service can be activated. www.newholland.co.nz

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Rural News // september 18, 2012

52 machinery & products

Big, new draft tractor ‘stacks up’ A CLOSE study of the new Case IH Steiger confirms the tractor as true market leader, says the brand’s product support manager, Ivan Wildbore. “We know that when customers are looking to

make a big investment in new machinery, they need to know how their preferred option stacks up against other machines in the market. We recently reviewed the new Steigers… and [found they]

performed considerably better across all the important categories, from power to drive train, operator comfort to visibility,” Wildbore says. “The Case IH Steiger is the highest horsepower

4WD tractor in production, with Nebraska testproven best-in-class fuel economy and the largest, most spacious cab. Steiger also offers at least nine standard features not offered [elsewhere, such

The new Steiger has set industry records for fuel efficient power in independent lab tests.

as] the MultiController armrest and class six automotive grade paint. Wildbore cites visibility-reducing features including exhaust and air cleaners on the same side, and a higher nose profile, as class-leading features.. The Steiger has halfinch steel fuel tanks, rather than plastic, a heavier frame, a longer wheelbase and the maker’s exclusive Quadtrac option. Inside the cab, the Steiger offers the AFS Pro 700 touch-screen monitor. The Steiger also offers an exclusive 40-degree seat swivel, a sophisticated shock and stabiliser cab suspension option for smoother ride, and automatic climate control.

The Steiger has the largest axles in the industry, tri-point oscillation chassis with centre-pull drawbar and currently holds the Iron Solutions Award for best resale value in the industry in the 4WD segment. The Steiger has not only proven itself in Case IH trials: both the new Magnum and the new Steiger set industry records for fuel efficient power in the independent preliminary Nebraska Tractor Test Lab results. In Australia the Steiger is the market leading 4EWD tractor: last year almost one in every two articulated 4EWD tractors sold in Australia was a Steiger. www.caseih.co.nz.

Local show role for notable farmer MS1367

NORTHLAND DAIRY farmer Murray Jagger is the new president of the Whangarei A&P Society, after committee work since 1998, most recently as vicepresident. He succeeds Grant Billington, president for nine years. The society’s summer show is the largest of its kind in Northland. It began in the mid-1800s. Jagger is a prominent Northland farmer and businessman: he was founding chairman of the Northland Kikuyu Action Group and oversees the NZ Fire Service Whangarei Heads station. He is a member of the Institute of Directors, an LIC director and a national councillor for Whangarei. He has been an LIC liaison farmer since 1994. Jagger and his wife Helen farm 500ha at Taurikura Bay, Whangarei Heads. They are past Northern Regional Sharemilker of the Year winners. The farm milks 630 Jersey cows and employs four staff. The Jaggers’ also breed Angus-cross beef cattle from their Jersey herd, rearing the steers through and selling heifers at 18 months. “I am excited about taking over the role of president at this time in the society’s history,” says Jagger. The society faces an era of change, Jagger says. “As a nation we have moved away from our traditional roots on the land, yet food production and utilising our wonderful resources have never been more crucial.”

Rural News // september 18, 2012

motoring 53

Ute aimed at farmers a dam fricker

Land Rover has announced the launch of the allnew Range Rover, which it claims is the world’s most refined and capable SUV. Land Rover says the fourth generation of the iconic Range Rover line has been developed from the ground up to provide the ultimate luxury SUV, following on from the original design from over 40 years ago. The world’s first SUV with a lightweight all-aluminium body, the new Range Rover takes the capabilities of the marque’s flagship to a new level, with even greater luxury and refinement, enhanced performance and handling on all terrains, and significant advances in sustainability. “Launching the all-new Range Rover represents a major milestone for Land Rover, being the first exciting output from an unprecedented investment in premium vehicle technologies,” says John Edwards, Land Rover Global Brand Director. “The new Range Rover preserves the essential, unique character of the vehicle – that special blend of luxury, performance and unmatched all-terrain capability. However, its clean sheet design and revolutionary lightweight construction have enabled us to transform the experience for luxury vehicle customers, with a step change in comfort, refinement and handling.” It is expected to be available in New Zealand from January 2013 Key features of the new model are: • Lighter, stronger and more refined, the world’s finest luxury SUV • World’s first SUV with a lightweight all-aluminium monocoque body structure • 420kg weight saving over outgoing model delivering improved fuel economy and CO2 emissions • An unrivalled breadth of capability with transformed handling and agility • Enhanced all-terrain performance with introduction of Land Rover’s Terrain Response® 2

cabin in this truck – you’d ruin the nice cloth upholstery. It is a strong and willing worker though and will tow 3000kg braked, 750kg unbraked and can carry 814kg. The RX comes with the usual Nissan 3-year, 100,000km warranty with roadside assistance. The Navara has always been reasonably civilised on the road and,

with the right tyres, capable off road and this remains the case with the RX, despite having been around for a few years. The RX makes a good value proposition, blessed with the best of the Navara frame but ditching a few of the less vital organs to moderate the price. It is a stripper with a bit of class.

Designed for heavy conditions and built strong, the NGH is ideal for medium sized farms. • 3.0 and 3.5 metre working widths available • 180Hp gearbox • Quick ﬁt tines • Cam clutch standard • Packer rollers standard

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THE NAVARA RX has been stripped of some luxuries to provide Nissan with a sharp-priced ute – aimed at farmers and tradies who want to pay for the practical stuff, not the gadgets and bling. The plain-Jane steel wheels are the first visual cue of the RX’s intent; gone are the big alloys you see on fancier versions of the Navara. The second cue is the impressive flat-bed tray. And the price will be the clincher for many: $46,490 for the Kingcab cab-and-chassis – tray will be extra. That’s about $10,000 less than the STX-450 double cab with all the fruit intact. The stripper RX gets a less powerful version of the 2.5L turbodiesel, but there’s no shortage of poke with 126kW @ 4000rpm and 403Nm of torque @ 2000 (the STX-

450 makes 140kW and 450Nm) hooked up to a smooth 5-speed automatic. Rural News drove the RX laden and unladen and, as expected, it went about its work effortlessly. It is perhaps marginally less refined than with the 450 engine, but you’re talking small degrees of difference. The level of specification is also lower than the STX. Again, you’d be hard pressed to find something to whinge about in this area: air conditioning, power windows and mirrors, central locking, cruise control, ABS, ESP, LSD, a decent stereo are all included. Would you really miss things like Bluetooth, MP3 connectivity, leather gear knob and a dangerously loud sound system? If anything, it’s almost too well kitted-out for a working clothes ute. You couldn’t hose out the

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

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read p s n a r T r o o Twin Fl • 2 floors give greater accuracy on bends and corners • Option of spreading half bout width • More floor torque for the toughest jobs

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nspread a r T g n i r e e St • Steering drawbar allows spreader to follow in the exact path of the tractor to eliminate any corner cutting • Perfect for crop growers

Rural News // september 18, 2012

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

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 Made in NZ – 10 year guaranteed

PRICES QUOTED EXCLUDE GST

Fieldline Jumbo Buster Our deep ripping European chisel ploughs are ideal for breaking up hard pans or compacted ground, and for ripping after crops have been harvested. We also have a few 5.7 and 9 tine models on special this month. Model pictured RRP $8495. Ex display unit $7495

Cambridge Rollers We have a large rangeof new and used rollers in stock. Enquire now for priding. Unit pictured rolls 2.4 metres. $2900

ATV and Compact Tractor Rollers The original Cambridge roller design offers unmatched effectiveness when it comes to pasture repair, preparation or re-grassing. Larger sizes available too. Brand new $2595

Fieldline Disc Plough European Massey Ferguson design. Ideal for incorporating crop residue and also commonly used for ploughing peat country. Special opening spring season pricing for 4.5 and 6 furrow units. Save up to $2000. Hurry - very limited stock at these prices. POA

3 PTL Backhoes Suits 25hp upwards. Remove it in minutes. RRP $9995. We have one only ex display unit available at a very special special price of $5950. New units and larger models also in stock.

MF 2 Furrow Disc Plough Genuine design made in Europe. Brand new. This design has strengthening gussets behind each dropper making them stronger than Indian/Asian copies. RRP $3595. 3 x units available. $2695

Combination 3 PTL and Trailed Discs These versatile discs are ideal for natural weed control in orchards, etc and secondary cultivation, incorporating cropping stubble, pasture resowing etc. 5 size options available up to 3 metres wide as pictured. Ask about our display unit – never used, badly shop soiled. $4495. Save $2000

Stump Grinder Connects to any standard linkage, includes hydraulic depth control and cut angle. Made in USA. We have 1 x ex display unit available for $8500. RRP $10995

SPECIAL ACRYLIC

FENCE RAIL BLACK Amazing cover

$ FREE DELIVERY LITRE www.enviropaints.co.nz 0800 50 ENVIRO (0800 50 368476) PER 10

14 Riverbank Rd, Otaki

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

We have the expertise to look after your farming community. Programmed Property Services offer a range of distinct services designed to add value individually or as a packaged approach to your property upkeep needs. Painting Services

Corporate Imaging

Internal and external painting

Signage and signage design

Maintenance painting programmes

Identification and directional signage

High pressure cleaning

Grounds Services

Access specialists

Gardens and ground services

Heritage work and specialised finishes

Arboricultural services

Rural News // september 18, 2012

Be Safer With Duals

rural trader 55 Feeding and watering equipment. Plus many other products. Backyard to commercial operations. Free catalogue 0800 901 902 or

DOLOMITE

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

LATEST STORIES ON www.ruralnews.co.nz BREAKING NEWS MARKETS & TRENDS COMPETITIONS MANAGEMENT STORIES MACHINERY REVIEWS AND MUCH MORE...

email: sales@pppindustries.co.nz

FLYSTRIKE AND LICE ❖

Fantastic Penetration

❖

Apple Cider Vinegar - High Quality Proven livestock supplement blends Buy Direct 200L from $340 + GST delivered

LK0042303©

Poultry EquiPmEnt

Dairy-Mate Direct 0508 324 796

www.clicdualwheels.co.nz

clean | safe | secure Diesel Tanks

Quality

PPP Super Jetter Manufacturing Jetters since 1980. 1000’s sold in NZ & overseas.

Freephone 0800 901 902 email: sales@pppindustries.co.nz or www.pppindustries.co.nz

GLOBAL STAINLESS

Phone 06 272 8544 globalstainless@clear.net.nz

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

RAINWEAR SALE! 40% 100% Waterproof, breathable & lightweight!

OFF!

$42

$66

valued at $140

valued at $220

Clic Wheel Systems Ltd, Rotorua

Ph/Fax 07 347 2292

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

NO ONE BEATS OUR PRICE • Make a big job quick and easy • Retire the shower and plunge dip • Quicker and much more effective than a hand wand! • Deep penetration, total body coverage, 2.5 litres/sheep • No re-cycling – always fresh clean dip prolonging residual effect of your dipping product

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

Optimum clean fuel Easy and safe to fill and dispense

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

Fully Compliant Minimise fuel theft Bunded

$48

valued at $160

Visit our website for a full list of products and features

Smart Fuel Storage

0800 473 226 www.sebco.co.nz

Proudly made in Ashburton, New Zealand

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.

• 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.