Rural News 20 Nov 2012 by Rural News Group

grasslands

water quality

Gore plays host to 400 delegates at the 74th annual conference of the NZGA. pages 29-31

LAWF final report states more integration with land and water management needed. pages 4-5

Rural NEWS

economics Banker warns a lack of farm profits could stifle investment capabilities.

page 14

to all farmers, for all farmers

november 20, 2012: Issue 527

Council consistency concerns p e t er bu r k e peterb@ruralnews.co.nz

THE CHAIR of Federated Farmers Meat and Fibre group, Janet Maxwell, says there needs to be greater consistency in decision making by local and regional councils. This topic came up for discussion at the group’s council annual meeting in Wellington recently. She told Rural News that the lack of consistency in council decisionmaking is hard on farmers. “We have some councils out there doing some really great work with good collaborative governance. Then we have got others who have been chugging away through very long processes for really odd outcomes. We, as farmers, have to come to grips with some of these decisions that have been handed down. This is making things a bit tricky for farmers who just want to be able to stay sustainable.” She says the Federation has talked to government about this issue. Maxwell adds that sheep and beef farmers have a ‘softer’ environmental footprint than dairy farmers. She says there just hasn’t been the money in the sheep and beef sector to farm intensively. Maxwell believes that most sheep farmers wouldn’t head down the intensive track anyway, because fattening lambs in intensive situations doesn’t work well. • See more pp 4-5

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The red ink sector? pam tipa pamelat@ruralnews.co.nz

SILVER FERN Farms (SFF) did not see the early-2012 lamb market crash coming soon enough, says chief executive Keith Cooper. “Things were ticking over ok into Christmas; post-Christmas it hit the fan.” And he is calling for consolidation of smaller players in the meat processing industry, saying farmers could very quickly make this happen. His comments follow SFF reporting a loss of $31.1 million for the year ending

September 30, 2012 from total revenue of $2 billion – down from a $30.8 million profit the previous year. This follows Alliance Group reporting a net loss after tax of $50.8 million and Blue Sky Meats cutting jobs after reporting a loss exceeding $600,000 – after a $6 million profit the previous year. Explaining the SFF result, Cooper says there was a “disconnect between our view on the market, the customers’ requirements and the lamb schedule, which all manifested late in the day when the market crashed about Feb-

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ruary. We were comfortable with our margins going into that period then we got caught with the dramatic tail-off of demand value on a sustained basis. “Once we got that all into the mix the schedules tracked down rapidly, but arguably it was all too late at that point.” Cooper says the meat processing industry’s problems relate to “the number of competitors for the decreasing volume of livestock and the assets those competitors operate”. “It is probably more about the number of people in the sector as opposed to the number of assets in the sector.” Aggregation is needed, he says. “Hopefully the predicament the meat processing/exporting side of the sector finds itself in this year may instill some activities in people to start to address some issues which have been

show winners Judges Brian Hayman and David Wylie with Southdown carcase evaluation class winner David Gillespie who was among the champions in the Canterbury A&P Show sheep pens, where objective measurement of stock is playing an increasing role. More show pics and story, p7

there for a long time.” Cooper says the larger companies are there for the long haul. “Perhaps the discussions should centre on those outside the main four companies and whether there is an opportunity to aggregate at the smaller end of the industry.” Following recent union criticism of industry leadership, Cooper says “it is very fraught to compare the leadership in the meat industry – which has 23-odd players – with the dairy industry which has a very dominant large player where it is quite easy to show the leadership”. “The meat producers tend to like competition,” he says. While there was a decrease in plants and companies during the 1980s and 1990s, there’s been a “proliferation” in recent years. “Farmers support new plant and new players in the mistaken belief that it is healthy for the industry,” says Cooper. “All it does is further fragment and ensure there’s a lack of investment in the sector. “The simplest way to aggregate the industry would be for farmers to choose who they want to support, based on an informed set of data or strategic overviews of all the companies. Farmers could very quickly reshape this industry by picking companies that are investing in the future for farmers to create more value, to create sustainable returns for farmers.” Despite the result, Cooper says SFF is comfortable it has the right infrastructure, the correct sales channels and the right brand, underpinned by a robust investment programme. @rural_news

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Rural News // november 20, 2012

news 3 issue 527

www.ruralnews.co.nz

‘Psuedo-science’ earns rebuke AN DREW SWALLOW andrews@ruralnews.co.nz

News �� 1-16 World �� 18-19 Agribusiness �� 20-21 Markets �� 22-23 Hound, Edna �� 26 Contacts �� 27 Opinion �� 26-28 Management �� 29-33 Animal Health �� 34-41 Machinery and Products �� 42-46 Rural Trader �� 47

GRASSLAND ASSOCIATION speaker Doug Edmeades tackled the problem of interpreting field trial results, suggesting an analysis of the distribution all trial results. He proceeded to apply that to a range of fertiliser and plant growth promoting products available in New Zealand. “Many, many claims are made for these products.” Some, such as NuFarm’s ProGibb, stood up to his scrutiny. “It’s a case where we can be confident this product is up to the claims they make for it.” Others, such as Ravensdown’s eco-n, didn’t. “The claim is this product

sudeshk@ruralnews.co.nz

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: subsrndn@ruralnews.co.nz ABC audited circulation 80,767 as at 30.06.2012

that he’d broken almost every statistical rule, but a statistician in the audience stood up for the technique, and Grassland Association president Jacqueline Rowarth Doug Edmeade later told Rural News the paper, now published in the association’s conference proceedings, underwent an extra-thorough referee process – including scrutiny by a Canadian statistician. @rural_news

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More on Grasslands conference p 29-31

Rivals unfazed by milk supply changes SUDES H KISSUN

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increases pasture production up to 20%. They might as well have said this product decreases production down to 20% too. But that’s not needed in advertising.” The mean response from the field trials made available to him to analyse was 2%, which was in-line with what would be expected from the amount of nitrogen contained in the eco-n ingredient, DCD, he said. Edmeades’ analysis of the 16 SustaiN trials, which are available in the public domain, showed a mean response of about 4%, which made sense in terms of the claim that Agrotain limits the loss of nitrogen by volatilisation as ammonia from urea. The paper provoked an accusation

FONTERRA’S BIGGEST rival says it will be business as usual when the co-op turns off raw milk supply in 2016. Open Country Dairy says its supplier recruitment drive will more than cover the loss of 50 million L of milk it obtains from Fonterra under the DIRA raw milk regulations. The Government last week announced changes to the regulations including a three-season limit for large independent processors with their own milk supplies. The decision means OCD, Tatua, Westland Milk and Miraka will each lose 50mL of raw milk they annually access from Fonterra. OCD chairman Laurie Margrain says the announcement did not come as a surprise since the Government had floated the proposal in the consultation document at start of the DIRA review. “We had expected this and have

been long since planning our strategy,” he told Rural News. OCD has increased capacity at its Waharoa plant and 75% of that extra capacity has already been filled by new suppliers. “These new supply deals are

signed and sealed so it will be business as usual for us,” he says. But Margrain says turning off Fonterra’s raw milk supply to independent processors will limit new competition in regions where the co-op is the sole processor.

Final chew-down: Mint Lamb competition taste test judges Geoff Henthorn (Novartis), Russ Thomson (Alliance), Amy Adams (Selwyn MP) and Ed Marfell (Haslett Rural) tuck into the first of fifteen loin cuts. More from Canty Show page 7

It’s different this time! A N D REW SWA L LOW

WOOLS OF New Zealand is emphasising the differences between its invitation to growers to buy into a new company and the Wool Partners’ cooperative proposal which failed in 2010/11. “We’ve learned from that and improved the model as a result,” WONZ director Mark Shadbolt told a handful of producers who turned out for meetings at Mt Somers, Canterbury, earlier this month. WONZ is seeking a minimum investment of $5m, with a target of $10m, to capitalise the company and place what is currently a trust, in the hands of strong wool growers. Minimum investment is $5000, with each $1 share giving the producer access to marketing contracts for up to 2kg of wool. Those contracts would likely be offered through existing buyers but, crucially, rather than producers losing track of what happens to their wool at the auction stage, be linked to an end use and priced accordingly. “In the market we’ll get the enquiry and bring that back through the current exporters… We really want to partner with them but where we can’t they will pay a premium for the use of our brands.” Shadbolt says the WONZ Centre of Excellence in Ilkley, UK, is “the jewel in the crown” of the proposed company as he believes it has a unique capability in the industry. “If anybody can show me a similar entity that can provide the same services, apart from the big boys who have their own in-house departments, I’d like to know.” @rural_news

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4 news: lawf final report More changes are looming to the way fresh water is to be managed following the

LAWF heralds radical THE LAND and Water Forum’s (LAWF’s) third and final report was released late last week and it contains 67 recommendations – some of them radical. Chiefly they emphasise managing water by catchments and it calls for stakeholders, including farmers, to adopt ‘good management practices’. The report calls on regional councils to play a significant role in the way water is managed, but under specific guidelines set by central government. In emphasising ‘integrated catchment management’, the LAWF report notes that no more than 5% of catchments have water quality limits and few regions have measurable fresh water objectives in regional plans. This throws up challenges including the differences between urban and rural land use, limited data on many water bodies, managing a wide range of contaminants from a wide range of sources and the cost of implementing changes. The primary goal in managing water quality must be to integrate land and water management within a catchment, the report says. This is linked to the concept of ‘good management practices’ (GMPs) set out in the report and the choice of words is of special interest – ‘good’ rather than ‘best’. GMPs are defined as an evolving ‘suite of tools’ or practical measures being put in place for use by all water users to improve water quality. Farm plans, codes of practices are seen by the authors of the report as being part of the GMP process. The report outlines a number of recommendations to set thresholds to deal with

contaminants and what should be done if these are reached. It also says national direction should be given to regional councils to ensure consistency in setting thresholds – a common complaint by many farmers. Of particular interest to farmers are the recommendations on the allocation of water. The ‘water allocation framework’ needs to foster investment certainty and allow water to move to its highest value use over time, the report says. And it recommends removing administrative barriers to trading and transferring water, a topic of much debate by the rural sector, e.g. should water be allocated for commercial growing or for dairy shed wash-downs. There’s been an absence of clear direction on water allocation, says LAWF, and it favours some national direction, but with scope for local solutions. The 108-page report is detailed and even farmers may need to get professional advice to figure out exactly how it may affect them, assuming the Government acts on the recommendations. The LAWF report is likely to provide the evidence and demonstrate support for any future government changes to the law – in particular the Resource Alastair Bisley Management Act.

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THE MAN who has chaired LAWF since its inception, former public servant Alastair Bisley, describes the report as having ‘crossed a watershed’. LAWF, with its collaborative decision-making approach, has saved New Zealand from ‘water wars’, he says. But he calls for a degree of realism in people’s expectations. The second LAWF report, released earlier this year, was about setting objectives; this report goes a step further and focuses on set-

ting limits, he points out. Thus the importance of managing water by catchments, already being done in some regions. “New Zealand is a post-industrial country with primary industry and general industry heavily dependent on the water, therefore our objective for managing water is not going to be having water at pristine quality. “We know it will vary from place to place and I think people will accept that, provided there are bottom lines which respect a wide range of values. But they want the quality of water in New Zealand rivers, lakes, streams and aquifers to improve and outstanding water bodies to be pro-

tected.” The report and its recommendations are for everybody – urban dwellers as well as farmers. From a rural perspective the report makes sense. Bisley says. “This is about managing to meet objectives within limits, about trying to keep your nitrogen and phosphorous and soil on the farm and not sending them down the river and trying to use your water at the level of the roots. It’s not that I think any of these things are easyto do or automatic things to do, but the package we are putting up [must] make sense for farmers, the economy and the environment.” A key objective is getting consistency,

and to this end Bisley emphasises the need for national guidelines meshed in with local solutions and the setting of bottom lines. “I am hoping that national consistency will help to avoid the wide range of different practices we have now. More importantly I think collaborative processes should be used within catchments so that communities decide on, and buy into, the specific objectives, limits, means and timeframes in the catchments.” Water allocation has generated much debate. Bisley says the report recommends policy to progressively clarify and strengthen peoples’ to page 5

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Rural News // november 20, 2012

news: lawf final report 5 publication of a major report. Peter Burke explains.

change in water use REGIONAL COUNCILS cop a lot of criticism in the LAWF report. For example, “Despite significant improvement in recent years, there are persistent concerns in New Zealand at the capacity and ability of regional councils to make technically robust and legally sound and policy decisions.” The Environment Court has had to play a critical role in ensuring the quality of plans and LAWF says it hopes a ‘collaborative’ approach, which it strongly advocates, will help develop better plans. While it doesn’t rule out the role of the court as a means of challenging the ‘merit’ of council plans, it’s hoped the collaborative approach will reduce litigation. LAWF advocates beefing up ‘section 32’ reports under the RMA, designed to make detailed cost benefit analysis of plans. The report recommends an assessment of the quality of section 32 analyses be included in the RMA performance monitoring framework. It was a section 32 report by Horizons Regional Council that recently drew sharp criticism from Primary Industries Minister David Carter – a “woeful” report, he said. Carter’s comments follow economic analysis for the Ministry of Primary Industry of the impact on farming of One Plan: this analysis was completely at odds with that by Horizons. The MPI report showed some farmers’ incomes in the region could be reduced as much as 43% if the One Plan remains as it is. Just weeks earlier, the chairman of Horizons, Bruce Gordon, had claimed One Plan would at worst have a ‘neutral’ economic impact on the region. Carter says he’s concerned the One Plan appears to be so restrictive of farming productivity increases in the region. “It’s a very serious issue if we’ve got regional plans being developed attempting to protect water, but going so far as to cause a dramatic drop in profitability which is, after all, what New Zealand relies on.” Federated Farmers calls the MPI report ‘Farmergeddon’. Chief executive Conor English says plan changes mean real changes to peoples’ lives and good data is needed to make decisions. “If someone walked into the council and said everyone there had to take a 43% pay cut, they would be quite interested in knowing why that was the case. What is important with these plan changes is that they need to make sense and be practical, fair and reasonable and actually make a difference.” English is highly critical of councils around the country for the way they conduct economic analysis of plans. He says under section 32 of the RMA, councils have to do this work before a plan change is notified and many are not doing this.

Realist leads disparate bunch from page 4

authorisation to use water and make consents [irreducible]. “That means you know if you have a consent, that that consent means what it says and gives people greater certainty. You can do this because of the limits regime, which means you know how much water there is there to be allocated. “We think that having clearer consents will allow voluntary trading to take place if that’s what people want to do,” Bisley adds.

Now that the report has been made public, the Government will be able to look at the recommendations and see what it might take from the report. It could be in the form of policy advice, new rules and regulations, the implementation of which will rest for the most part with regional councils. “I hope government finds that it’s not only good policy, but good policy around it, that makes it much easier for them to adopt.

Concensus a major achievement LAWF WAS set up by the Government in 2009 and comprises a group of 58 stakeholders including agricultural and environmental groups, iwi, power companies, recreationalists and industry. Representatives from the primary sector include Beef + Lamb New Zealand, Federated Farmers, Fonterra, HortNZ and DairyNZ. Forestry and irrigation interests are represented, so are the likes of Fish and Game and Forest and Bird. Research institutes and central

and local government have also been involved. The task of the group has been to advise government on fresh water management matters including allocation, storage, quality and general use. A key task has been to get consensus in a disparate group of individuals and organisations. The report last week was the last of three. The future of LAWF is unknown, but it seems likely its life may be extended to ensure some degree of harmony and consensus is retained on freshwaterrelated issues.

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Rural News // november 20, 2012

6 news Commerce Commission asked to oversee INDUSTRY ORGANISATIONS say they want international shipping to come under Commerce Commission oversight as recommended by the Productivity Commission. Export NZ executive director Catherine Beard says conferences on routes and the logistics of sharing ships is sensible for New Zealand where we are a long way from markets.

“But we don’t think the shipping industry should have an automatic exemption from the Commerce Act when it comes to setting rates and when it comes to price,” she says. Export NZ has made a submission on this to the select committee looking at the Commerce (Cartels and Other Matters) Amendment Bill. Meat Industry Association chairman Tim Ritchie says they

also support the Productivity Commission recommendation to bring international shipping under the Commerce Act and removing exemptions from competition law for rate-making agreements. This could still allow for slot sharing agreements that provide benefits to shippers in cost reductions and the provision of shipping capacity serving New Zealand. “In light of the Productivity

Commission recommendations, the Government has requested that the commerce committee consider as part of its consideration of the Commerce (Cartels and Other Matters) Amendment Bill a proposal for international shipping and international civil aviation to transition to competition regimes governed by the Commerce Act. We are fully supportive of this,” he says.

Huge hike in shipping costs cause concern pa m t i pa pamelat@ruralnews.co.nz

MOST EXPORTERS of chilled primary goods are in urgent talks with shipping companies over a 25-30% increase in refrigerated shipping costs starting from January 1. Industry organisations say it will hit farm or orchard gate prices. The increase of $1500 per 40ft reefer container would equate to $1.50 more per lamb or the same for a carton of apples. The price hike was kicked off by Maersk with other shipping companies following suit, prompting calls for international shipping to be brought within competition regimes of the Commerce Act (see sidebar). Shippers Council chairman Greg Steed says some primary produce lines may be put at risk. His organisation represents some of the country’s largest exporters such as Fonterra, Zespri and the Meat Industry Association. Each

“Any increase is going to affect us and our returns back to our grower shareholders.” – Mike Knowles, Zespri exporter does its own negotiations with shipping companies and the bigger ones have more negotiating powers – but they are still affected. “This is a worldwide increase. The instigator of this, Maersk, said the trades were uneconomic,” says Steed. “But we don’t know that… we could be subsidising losses made on other reefer trades. We are not convinced the increase is justified for New Zealand trade.” Steed says the carriers need to justify their claims. Other shipping companies are following Maersk’s lead in hiking up prices, so there’s no competition. Zespri’s representative Mike Knowles says freight is Zespri’s single biggest cost. “We are a long way from the markets in New Zealand and it would be the same for every exporter. Any increase is going to affect us and our returns back to our grower shareholders.” Tim Ritchie, chief executive, Meat Industry Association, says the increase equates to $1.30 per lamb. “The impact will clearly go straight through to the bottom line and what companies can offer their suppliers, the farmers,” he says. “We are constantly facing inflationary pressures but this is well beyond anything that can be justified by inflation and is totally unreasonable.” Ritchie says New Zealand is no longer strategically important to the major carriers. Instead of bespoke services for Australasia to Europe, cargo is hubbed through Asia. “On that second leg much larger vessels are used and our cargo is relatively minor – so our interests are subsumed by the other cargoes. Unfortunately we are hardly even ‘a pawn on the chess board’.” Onion NZ chairman Michael Ahern says members are reeling. Their main markets are Europe and UK and the industry recently successfully switched to refrigeration. Onions are a low value item, but freight costs are high. “Wrap all that up with major concerns around competitiveness of the New Zealand dollar and competition from other countries with cheaper significantly freight rates and increasingly competitive currencies.” Pipfruit New Zealand chief executive Allan Pollard says a further $1-$1.50 per carton ($40 is a good price for a carton) is likely to be added in costs. “Any increase at the moment is difficult given the industry has had some hard years over the last few years.” @rural_news

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Rural News // november 20, 2012

news 7

Sun shines on Canty’s 150th A&P show A N D REW SWA L LOW andrews@ruralnews.co.nz

CANTERBURY A&P Association’s 150th annual show opened to sunny skies last Wednesday with an estimated 15,000 flooding through the gates. Association president Richard Lemon opened the event with the traditional raising of the flags, and unveiling a plaque to mark the milestone moment. Even the cool shadow of a solar eclipse couldn’t dampen the celebratory spirit. Livestock classes were particularly well supported. In the sheep section an increasing number of breeds are including classes with objective measurements of carcase or wool, such as the Southdown Society’s Merial Alliance Carcase Evaluation class. “A lot of rams that do well in this class do well passing on the commercial traits,” breeder Chris Medlicott told Rural News. “It has led our breed to a certain extent.” Bodyweight and scans of fat and eye-muscle area feed into the scoring, as do points for forequarter, loin, hindquarter, and structural soundness awarded by a breed judge and procurement judge.

“We try to be as critical as we can from a commercial point of view,” Alliance’s Brian Hayman commented. David Gillespie, Oxford, won the class with a ram from his Midlands stud. “I’d say it was very, very close. I just try to breed good rams for the commercial guys,” he told Rural News just after his win. In the Poll Dorsets Neville and Diane Greenwood won the equivalent “Scanagram” class, and supreme champion for the breed, with a hogget ram from their Adelong Stud, Ellesmere. “It brings the commercial reality into showing, actually measuring the eye muscle of the sheep and balancing that with eye appraisal,” Greenwood commented. “There’s no point having all that muscle if a ram’s got that many faults he can’t do the job.” Judge Barry Rae, Oamaru, had the unenviable task of placing the rams without knowing how they’d scored on the scanner. As it turned out, there was a good correlation. “This is a magnificent line-up of sheep and I would urge anybody who tried to talk you into a

composite to look at the meat on these purebred sheep. You’ll find they’re exactly what the market’s looking for.” Chair of the cattle committee Warwick James said beef class entries were up by 160 on last year.

“It’s been a difficult spring in the South Island because of the weather but they’re turned out very well. Some are still showing their winter coats it’s been such a cold spring.” @rural_news facebook.com/ruralnews

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Rural News // november 20, 2012

8 news

New chair defends keeping van der Heyden on board SU D ES H KI SSU N sudeshk@ruralnews.co.nz

WITH FONTERRA farmers in election mode, chairman-elect John Wilson has been forced to defend his decision to ask outgoing chairman Henry van der Heyden’s to remain on the board beyond 2012. Wilson is urging shareholders to respect the contributions of van der Heyden and independent director Ralph Waters. He says it’s “a huge embarrassment” that van der Heyden’s contribution to the co-op has been called into question by a small group of farmers. Wilson, who is up for re-election with fellow director Nicola Shadbolt, is facing nine other candidates for the three seats being vacated. Voting starts on November 26. Van der Heyden steps down as chairman at Fonterra’s annual meeting next month. However, he has agreed to stay

on indefinitely. Waters, due to retire next month, will stay for another six months. Both men were asked by the board to stay. Some farmers have questioned van der Heyden’s decision to stay despite giving up the chairmanship. But Wilson says as chairman-elect he led discussions for both men to stay as the co-op embarked on a unique journey under TAF (trading among farmers). “As chairman-elect I recommended to the board to keep the two on. Every single director supported that,” he told Rural News. “These guys are the two most experienced board members and we need their expertise.” “I’m deeply troubled by some media reports. Henry has provided loyal service to the dairy industry and Fonterra for many years. We should be celebrating his contribution.” Van der Heyden is chairman of Tainui Group Holdings and a director of Auckland Airport and Rabobank Aus-

tralia and New Zealand. Waters is chairman of Fletcher Building and a director of Westpac New Zealand. He is also chairman-elect of Australian retail giant Woolworths. Wilson points out Fonterra could have technically faced five changes to its 13-member board if van der Heyden and Waters had departed next month. With the resignation of Colin Armer, there’s one vacancy on the board. Wilson and Nicola Shadbolt are up for re-election at the annual meeting. Wilson says in the context of the Fonterra board, five changes do not make sense. “It’s all about continuity. Really, it’s a no brainer,” he adds. With the TAF prospectus out two weeks ago as part of the book-build for TAF, he says it would have been unhelpful to have directors moving in and out. Wilson rubbished claims that van der Heyden will still hold the reins after stepping down as chairman. “I can assure farmers Henry will not get in

my way. I’m sure he will make a very good contribution as a director.” Wilson points out that van der Heyden’s term as a director doesn’t end until the annual meeting in 2013. He urged farmers to get behind the co-op as its launches TAF. “For us, farmers, the council and the board the priority should be to remain united and focus on the business. The payout’s down due to the high dollar and volatile global dairy prices. We’re aware cashflow on farms is tight. “The challenge is how we can expand the business and increase dollars in farmers’ pockets. It’s very important for farmer shareholders to be united.” Wilson believes the co-op is well placed to move into a new era. New chief executive Theo Spierings is imple-

John Wilson

menting his strategy refresh. “These are exciting times for farmers. I feel privileged to lead the co-op. It’s very important our shareholder base is united as we move ahead.” @rural_news

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Rural News // november 20, 2012

10 news

Right royal fuss over wool PAM TIPA pamelat@ruralnews.co.nz

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THE UNITED Kingdom’s most prominent sheep farmer – His Royal Highness The Prince of Wales – was hosted at the Shear Brilliance wool showcase at The Cloud on Queens Wharf in Auckland

last Monday. Prince Charles proudly wore his New Zealand wool suit and told exhibitors New Zealand is globally recognised for the quality of its wool. He also watched a demonstration of wool, cotton and synthetic being set on fire, to show the fire resistant

qualities of wool. “Prince Charles witnessed a graphic display of the fire retardant properties of wool by the New Zealand Fire Service,” Stephen Fookes, chairman of the Campaign for Wool NZ, told Rural News. “He encouraged them to take the demonstration nation-

wide to create awareness, and save lives.” The showcase was presented by the Campaign for Wool – its message: filling homes and offices with the natural fibre and doing it in style. The Prince of Wales is the patron of the five-year-old campaign being jointly run by the

wool industries of New Zealand, United Kingdom and Australia. Fookes says the showcase showed wool is the perfect fit for the more environmentally conscious consumer. Architect Stephen McDougall, of Studio Pacific Architecture, in

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The Prince of Wales speaking at the Shear Brilliance exhibition. Left is Campaign for Wool New Zealand chairman Stephen Fookes.

the role of Campaign for Wool Ambassador, says the architectural and interior design industry actually knows about the many qualities of wool and just needs to be reminded. “Over the past decade or more wool has slipped from peoples’ minds,” he says. New Zealand Shearing Contractors’ Association president Barry Pullin says Royal patronage at Shear Brilliance helped show that more successful farmers will sustain a more successful wool industry. “The art of shearing is alive and well, but with over two decades of depressed wool prices this challenging but wonderful industry is at risk,” Pullin says. “We all let standards slip sometimes when times are tough but the ShearNZ programme can take our industry into the future where standards are king and we can all exceed the expectations of the market place. Shortcuts in the shearing shed cost everyone and it’s costing the wool industry dearly”. The association, with the help of Beef+Lamb New Zealand, developed ShearNZ. Pullin says shearing

businesses that invest in good processes make a difference to the bottom line. “Along with our wonderful natural product come risks; unless we can give assurance of traceability and social and environmental sustainability, we are putting ourselves at risk in the international marketplace”. ShearNZ was established to provide farmers, through their shearing business, a programme that certifies operators. “It’s a programme that is easy to work through and helps set up processes that ensure better communications between farmers, the shearing team and the wool industry” he says. “But most importantly, it’s about providing the whole industry with confidence that we can assure our key audience – the export market – that we have pride in our people and our product, the wool we harvest and the animals we work with.” Federated Farmers meat and fibre chairwoman Jeanette Maxwell says the Prince inspired New Zealand farmers by showing exceptional knowledge of our farm systems.

One in the eye for synthetics THE CAMPAIGN for Wool was started in October 2008 by Prince Charles who saw the wool industry facing challenges in the face of competition from synthetics. As an environmentalist, the Prince believes the natural, sustainable and technical capabilities of wool can offer fashion, interiors and the built environment a host of superior benefits. Following on from his success in popularising mutton as a premium product, the Prince convened a meeting at Clarence House with stakeholders with a connection to wool – from sheep experts to wool marketers, wool traders to fashion designers and carpet manufacturers. Out of this initial meeting grew the Campaign for Wool. Prince Charles made an ongoing commitment to being the campaign’s patron for a minimum of five years from the official launch in February 2010. This year the Campaign for Wool was launched in the US in September and China in October.

Rural News // november 20, 2012

news 11

Why overseas buyers are purchasing NZ farms PE TER BURKE peterb@ruralnews.co.nz

FEWER FARMS would be sold to overseas buyers if the governance structures of those farms were better, according to a leading dairy farmer and recognised expert in succession planning, Trevor Hamilton. He says the reason that many farms end up getting sold to overseas buyers is that people suddenly require large amounts of capital to sustain their businesses and there aren’t many people in New Zealand with such large financial resources. “They can’t raise the capital and then all of a sudden their only means of raising it is to have a foreign buyer or owner. “If you stretch the balance sheet to require capital you are up for whomever can put capital in. So I am saying to New Zealanders if you don’t want foreign ownership, get your business planning, your succession planning and your governance immaculate and you won’t have foreign ownership.” Hamilton, who owns eight dairy farms, has a unique governance struc-

ture, has gone from a trust to a company structure, which has a board of which he and his wife Harriet are members. But he has two independent directors – his accountant, Glen Eden and academic James Lockhart of Massey University who chairs the board. None of Hamilton’s five siblings are on the board – although four work for the company, TH Enterprises. Any of the childrens’ concerns about farming issues must be directed to the board, not to their parents. Business matters and personal family issues are treated separately and Hamilton says this works. He says his governance structure is based on the Maori trust model, which is also designed to preserve the business for future generations. “The only difference is that we have got a lot less investors or shareholders than the Maori trust model. Our business is the same size as PKW, a large Maori trust in Taranaki. Like them, our model is intergenerational and so we have learned from their culture.” Hamilton says the time to develop

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a governance model for a business will vary from farm to farm. He says hitting the two million kilograms of milk solids per year was the time he changed. “Should we have done it before – the answer is yes. I think we probably should have done it five years ago.” For Trevor Trevor Hamilton Hamilton, proper governance can be the difference between saving and losing a business. He says he’s a lot of New Zealand family farms and businesses would still be New Zealand ownership if they had a strong governance structure.

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Feds back wool campaign PE TER BURKE

FEDERATED FARMERS’ Meat and Fibre group is urging its members to actively support the campaign for wool. Chair Jeanette Maxwell says this followed an hour of discussion on wool at a recent council meeting in Wellington. She says a remit to this effect was passed, which also urged farmers to attend Wools of New Zealand meetings so that they could get some first-hand information on the campaign and make informed decisions. Maxwell says wool is a product that ticks all the right boxes in sustainability, environmental aspects, economic value and the fact that it is a renewable product. “But wool should be doing a lot better. There are a lot of good things happening in New Zealand, but there

seems to be a lack of coordination or feedback to farmers. “There are some things farmers just don’t know about. There are some groups within the wool industry who are trying really hard to lift the profile of wool and that’s why we want our people to support the campaign for wool. It’s a way of helping to get our voice on wool out there globally.” Maxwell says a lot of good science has gone into wool and this is reflected in some of the products being produced. She points to the work of Icebreaker and some of the smaller knitting yarn companies. “There are some really good stories, but we don’t seem to be getting them out there. Wool is now a much nicer product either to wear or for use for carpets and upholstery.”

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Rural News // november 20, 2012

12 news

Investors clamour for Fonterra units SU D ES H KI SSU N sudeshk@ruralnews.co.nz

FONTERRA’S $500 MILLION public offer of units is set to leave many investors disappointed as huge local and overseas demand outstrips limited supply. Brokers are having to settle for a fraction of the volumes sought on behalf

of investors. Business commentator Brian Gaynor says sharemarket and bond investors are clamouring for units under TAF (trading among farmers). The strong interest is not surprising, he told Rural News. “Fonterra is New Zealand’s largest company and a well known brand so

there’s no surprise.” Gaynor says he understands major investment managers are getting only 10% of the allocations they sought. Broker Grant Williamson, Hamilton Hindin Greene, says investors are keen to buy Fonterra for the first time though they can only enjoy economic

benefits of the shares. Bond investors are also interested because of low interest rates offered by banks, he says. “Fonterra’s dividend payout on the share units is not overly attractive but will deliver better returns than the banks.” Fonterra’s offer is one of the largest in New Zea-

land in recent years, and Williamson expects it to be a huge success. “All in all, it should be good for the investor, farmers and Fonterra. But not everyone will get the amount of units they are after.” TAF allows Fonterra farmer shareholders to sell the economic rights of their shares to the Fon-

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terra Shareholders Fund. They can sell up to 25% of wet shares, the minimum share standards based on their previous year’s production. For every kgMS supplied to the co-op, a farmer must hold one share. Farmers can also sell dry shares -- those held in excess of those required to supply -- to the fund. However, Gaynor believes not many farmers will be keen to give up their shares. He expects most units to come from new shares issued by Fonterra. The co-op says it will issue shares to make up any shortfall. Fonterra doesn’t intend to

permanently retain the resulting equity. The Fonterra farmer shareholder offer closed Wednesday (November 21). Results of farmer uptake of TAF will be announced on Friday. The final price for economic right of shares will be announced on November 27. Shares begin trading on November 30. Fonterra’s indicative price range for units in the fund is $4.60-5.50. The co-op says the unit price will not drop below $4.60. It has forecast a dividend for the 2013 financial year of 32c/share, a yield of 5.87%. @rural_news facebook.com/ruralnews

How it works HERE’S HOW the Fonterra farmer shareholder supply offer works. A farmer’s minimum shareholding with Fonterra is 150,000 shares for the 2012-13 season, based on his milk production last season. This is the minimum number (wet shares) he can hold to meet the co-op’s share standard and he currently owns 175,000 shares (25,000 dry shares). Under TAF, this farmer can sell up to 25% of the economic rights of his wet shares (37,500 shares) to the Fonterra Shareholders Fund. He transfers the legal title of 37,500 shares to the Fonterra Farmers Custodian. He receives the final price for each economic right of shares and has 37,500 vouchers recorded against his name. Vouchers can be counted as shares when determining whether the farmer meets the share standard. At the same time, he can offer the economic rights of all the dry shares (25,000 shares) to the fund. But he won’t get any vouchers for dry shares. The fund is offering $500m of units to the public. The units will allow investors to enjoy economic rights to the shares given up by farmers. Voting powers and milk payout will remain with farmer shareholders.

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Rural News // november 20, 2012

news 13

No compensation for hairy calves – LIC su d esh k i ssu n sudeshk@ruralnews.co.nz

DAIRY GENECTICS company LIC has again ruled out compensation for farmers left with hairy cows after a genetic defect caused by one of its bulls. The co-op has refunded $400,000 to farmers for semen and inseminations from a bull called Matrix, but it refuses to compensate affected farmers. Federated Farmers has warned the matter could end up in court. LIC chairman Murray King says the decision to take legal action is entirely up to farmers. But he says the LIC board does not want to expose the co-op to open-ended future claims for compensation. Last week he told the LIC annual meeting the issue of compensation has been tough for the board. “The issue of compensation and reimbursement of costs has

also been intensely debated and I know our position on this has not been accepted as correct in all quarters. This was one of the more challenging issues I ever recall our board having to deal with. We do not guarantee against genetic defects and could never provide a guarantee against something only nature controls.” LIC takes steps to mitigate and manage risks, but they are present in all breeding – human and animal. LIC knows of no genetics company in the world providing such a guarantee, says King. “Our directors, many of whom are farmers with Matrix heifers, have always felt that exposing the cooperative to open-ended future claims for compensation for individual or widespread genetic defects is not something they can do as governors of the cooperative. “We fully appreciate the inconvenience, individual impact and

depth of feeling this issue has created and acknowledge it has damaged our relationship and reputation with some farmers. All we can do now is to focus on assisting farmers manage their individual situation and rebuild our relationships.” Effects of the mutation include some of the affected animals being excessively hairy, failing to milk properly when they get older and getting into water troughs and puddles to try and cool down. The defect was first reported to LIC last year when daughters of Halcyon, which sired Matrix, did not come into milk. At that stage the co-op was unable to advise farmers as it did not know what was wrong. To advise generally of potential concerns could have led to destruction of cows that were okay, King says. “As we were analysing Halcyon’s DNA we became aware of

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hairy Matrix calves being born and realised that whatever the defect was in Halcyon it had been passed to Matrix, who was in turn passing it to some of his offspring. “At the point we knew what we were dealing with, we started communicating with farmers who had used Matrix semen, and alerting them to the likelihood that approximately 50% of the offspring were likely to be affected.” Matrix was used as a yearling bull in LIC’s spring 2010 DNA Proven team, where he did about 16,000 inseminations; he also did a small number of inseminations in Autumn 2011 as a member of its winter milk teams, and was also used in very small volumes as a back-up sire at the start of the 2012 season. LIC has come under fire for not dealing with the problem earlier. King says maybe LIC could have noted a potential concern earlier but there were risks with that.

FARMER CO-OP LIC is comfortable with its outstanding $10 million loan to Chinese company Agria, despite misgivings among some shareholders. The animal genetics company has extended the loan term to April 2014 following a request from Agria, the majority shareholder in PGG Wrightson. At its annual meeting last week, chief executive Mark Dewdney was forced to defend the loan. One shareholder, Richard Myers, told the meeting he failed to see the rationale behind the loan. He questioned why LIC loaned money to a Chinese company to buy PGG Wrightson shares. Dewdney clarified that Agria had not defaulted on the loan but had asked for more time to pay it off. Agria and Ngai Tahu launched a partial takeover of PGG Wrightson last year. LIC, which is eyeing a stake in PGG Wrightson’s seed business once it is spun off by the new owners, agreed to provide the loan. ANZ also loaned Agria $53M, of which $28M has been repaid. Dewdney says the LIC loan was at commercial rates, and Agria has paid all interest on time. “Our security for the loan is PGW shares, and they would have to trade at under 10 cents a share to fall below the value of our loan – this compares to the current share price around 35 cents; we are comfortable with this,” he told the meeting. LIC is also using its relationship with Agria to tap into the growing Chinese dairy industry. “Our relationship with Agria has helped us open opportunities for our genetics in the rapidly growing Chinese dairy industry,” Dewdney says.

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Rural News // november 20, 2012

Notice of Election 2013 Election of Directors to the Beef + Lamb New Zealand Ltd Board Beef + Lamb New Zealand Ltd gives notice that elections will be held in 2013 for the following electoral districts: Western North Island One Position Central South Island One Position Invitation for Candidate Nominations Nominations are called for candidates to stand for election for these two electoral districts. Nominations must be on the official form, which can be obtained from the Returning Officer on the Election Helpline 0508 666 003. Nominations must be received by the Returning Officer by 5pm on Thursday 20 December 2012. Elections Election Day will be Thursday 21 February 2013. Elections will be conducted by postal and internet voting. Voting papers will be posted on 28 January 2013. To be eligible to vote, a livestock farmer must, on 30th June 2012, have owned at least: 250 sheep, or 50 beef cattle, or 100 dairy cattle Livestock farmers owning at least the minimum number of livestock in either of the above two electorates should contact the Election Helpline to check if they are on the electoral roll or to get a voter registration form. To vote, you must be on the Beef + Lamb New Zealand Ltd electoral roll by 5pm on Wednesday 23 January 2013. A copy of the roll for each electorate is available for inspection at the office of: Beef + Lamb New Zealand Ltd, Level 4, Wellington Chambers, 154 Featherston Street, Wellington 6011. Election Helpline: 0508 666 003 Warwick Lampp Returning Officer – Beef + Lamb New Zealand Ltd 0508 666 003 PO Box 3138, Christchurch 8140 wlampp@electionz.com

14 news

Debt levels pose risk pe ter burke peterb@ruralnews.co.nz

THE HEAD of agri for ANZ, Graham Turley, says inadequate profit levels on many farms could pose problems. His comments follow a recent warning by the Reserve Bank that some dairy farmers are carrying too much debt and could find themselves in trouble if export prices fall again. Turley says the lack of profits on all types of farms – not just dairy farms – means at some point farmers will have limited capacity for new investments. “For example if farmers are forced to spend money on environmental issues where are they going to get their money from? So there are constraints there. There is also vulnerability to commodity prices lowering or interest rates increasing.” According to Turley a key way to overcome financial problems is for farmers to produce a plan and good budget and carefully monitor costs. Meanwhile a leading agribusiness advisor, Ian Proudfoot of

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KPMG, says he doesn’t expect there to be a run of mortgagee sales of dairy farms in the coming season despite warnings from the Reserve Bank about high debt levels in the sector. But he says some farmers will be forced to restructure their businesses and others with multiple farms may be forced by the banks to sell some to remain solvent. “I think there is still a core of farm businesses that are really struggling from the fact that there were some assumptions made about payouts. In reality these business models were never sustainable at an average level of payout. That hangover still presents a real threat in some parts of the country where there have been intensive conversions such as Southland, Canterbury and Otago.” The new governor of the Reserve Bank, Graeme Wheeler, notes that more than a third of dairy farms will have negative cashflow in the 2012/13 season if Fonterra’s milk payout remains at $5.65 to $5.75/kgMS. He says this will

increase to about two-thirds if the payout falls to $5 or below. Wheeler says it’s worrying that about half the debt in the dairy industry is held by the 10% of dairy farmers most in debt. Dairy industry debt now stands at over $24 billion and Wheeler says there is little sign of this improving. Another problem, according to Ian Proudfoot, is feed costs, which have gone up in price as a result of the US drought. “US farmers are looking for other solutions for use in the feedlots which will put pressure on our more traditional feed sources such as PKE and that’s a negative to some farmers.” Proudfoot says it’s not all bad news and believes that some things have changed for the better in the last five months, which will benefit New Zealand producers. “The US drought has reduced the amount of supply going into export markets and there has not

ANZ’s Graham Turley

been great production out of Europe, which has also been beneficial. So when you look at those two factors, I think they are reflected in the global dairy trade which is on a gentle upward curve. I think this means that there’s an upside potential rather than a downside risk,” he says.

Ireland goes even greener ‘REALLY SMART’ is how the Beef and Lamb New Zealand chair, Mike Petersen is describing an Irish initiative to brand its primary products as greener than green. He told Rural News New Zealand should do something similar. There is a beautiful Irish song which proclaims that Ireland is a land of 40 shades of green – arguably it now has 41. Called Origin Green, it’s a quality assurance scheme initiated by Bord Bai, the Irish Food Board and so far 120 Irish food companies have signed up to initiative. Origin Green is designed to brand Irish food exports as sustainable and give a guarantee to this

effect to consumers. Initially the scheme started with beef exports, but it now applies to all food exports Petersen says that scheme will see all farmers audited to assess their carbon footprint. “They will also have to meet environmental requirements, animal welfare water quality and biodiversity requirements to meet the accreditation process. The Irish have decided that they are going to promote themselves as the green and ethical producer and I think this is an extremely interesting approach. It’s very smart.” Origin Green is a voluntary scheme, but one that’s catching on

fast in Ireland. Petersen says he’s had talks with New Zealand Trade and Enterprise about a similar scheme. “We are looking at the idea. We are looking at how we can link some of the initiatives underway particularly in quality assurance and in particular the assurances that we provide as farmers when we send product off our farms. “If you look at the way things are moving with all the water issues coming up this is something that fits with that. “We could put these assurances under a brand or a quality assurance scheme,” he says. – Peter Burke

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Rural News // november 20, 2012

16 news Waikato’s Dairy Goat Co-op is looking for a dozen more suppliers from July 2014.

More goat milk suppliers needed PAM TIPA pamelat@ruralnews.co.nz

SALES OF goat milk grew 38% in the last year for the Dairy Goat Cooperative, but shortage of supply is

holding them back from even bigger growth, says chief executive David Stanley. The Waikato cooperative is looking for up to a dozen more farm-

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But it is a pretty consuming so you wouldn’t, as an individual farmer, be trying to do both on the one property.” A block of 40-80ha is ideal and goat farmers need to be good with stock. “Cow dairying experience is useful but not essential. We have had people who come across from cropping and from drystock,” Stanley says. “You need someone who is prepared to put in some hard work. They are a lovely animal to work with but they do require more looking after than a cow. They are more intelligent; it’s an animal you can walk right up to and they

“Growing the goats is the main thing and that’s something we can help farmers with.”

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ers to start milk supply from July 2014. They have enough signed up for next season starting July 2013 and already have a couple signed up for 2014, but need more. “It’s a vibrant industry, it’s growing very quickly, there’s good returns out there…. It’s harder work than cows and more capital intensive, but the returns are better, considerably better,” says Stanley. The payout last season was $17.50kg/MS and it should be similar again this season. Gaining European approval for goat-based infant formula has been a major breakthrough.

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“We’ve been able to demonstrate to the European food safety authority that our product is both safe and fully nutritious for growing young babies. We are expecting their laws to change some time in 2013 and that’s going to offer some big opportunities,” says Stanley. “At the moment the only thing holding us back from taking advantage of that is the amount of milk we’ve got.” Demand is also coming from Asia, Australasia and the Middle East, “so we are getting strong demand from all our markets”. Stanley says because there is no stock available, rearing the kids is a temporary constraint on boosting milk supply. “So it means we’ve got to rear kids that will be born in July 2013 to have them milking in time for July 2014. The kids come from our existing farms so we will help people find the livestock that they need”. Most of the cooperative’s goat farmers are in Waikato but they also collect milk from Northland and Taranaki and tanker it to the processing facility in the Waikato. The average herd is 500-600. “We’ve got the odd farmer with a cow farm and a dairy goat farm.

will nudge against you; they are very inquisitive and friendly. It’s not like when you walk through a herd of cows and they all shy away from you.” Stanley says most farms use a cut-and-carry system; the goats are housed in a barn and pasture brought to them. “It is intensive; the returns are better but the work is harder. The best type of ground is high quality dairying pasture, ideally something that’s easy to mow to cut the grass on and something that grows a lot of high quality grass. The better feed you give them the better they are going to milk for you.” Sheds are rotaries and herringbones as with cows. “There’s a variation on the herringbone that’s become popular with goats, that’s a rapid exit…. They can exit straight out, which means you are getting them out of the shed much more effectively and because it’s a smaller animal you don’t have such heavy equipment in the shed.” Building the shed and infrastructure takes time but the goats are in milk quickly at 13 months. “Growing the goats is the main thing and that’s something we can help farmers with.”

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Rural News // november 20, 2012

18 world

$A1.77b Murray Darling water plan won’t help irrigators – ADIC THE GILLARD government has pledged A$1.77 billion for water infrastructure in its bid to release an extra 450 billion litres into the Murray Darling Basin, taking the total water recovered to 3200 gigalitres. Australian Prime Minister, Julia Gillard, and Water Minister, Tony Burke, were joined by the South Australian Premier, Jay Weatherill, when announcing the plan last month. Weatherill had previously pledged to take the Government to the High Court unless more water than the planned 2750 billion litres was returned to the environment. The money, to be spent from 2014, will go towards improving farm infrastructure so irrigation water can be used more efficiently. Most of the A$1.77 billion will go to improving water efficiency on farms but A$200m has been set aside to remove constraints in the system that restrict river flows. The bill to be introduced to Parliament allows for the 2750GL sustain-

able diversion limit (the amount of water to be returned to the environment) to be adjusted up and down to meet environmental targets for the basin. Most of the 2750GL is expected to be recovered by water buybacks from irrigators. The Australian Dairy Industry Council said the Federal Government is playing regional communities for fools if it thinks A$1.77 billion over 10 years will buy acceptance of what remains a deeply flawed Basin Plan. ADIC chairman Chris Griffin said the announcement doubled as a distraction from the Government’s inability to return 2750GL water to the environment without damaging irrigation communities – financially and physically. “The Prime Minister knows 3200GL can’t be delivered without flooding farms, towns, roads, caravan parks and tourist attractions like the Tocumwal beaches. Raising a couple of low-lying bridges to let more water flow under safely just makes it easier

to run the river at the same level that flooded hundreds of homes in Morgan in February 2011. “So where’s the money to buy the flood easements, build levee banks, and repair roads and eroded river banks after each flood? Without that, today’s announcement is just an expensive way of getting one state over the line for no actual environmental gain.” ADIC Basin Response Taskforce chairman Daryl Hoey said all current and new funding should be directed to limiting the amount of water bought back from irrigators to meet the Basin Plan target of 2750GL that will be returned to the environment. Hoey said environmental outcomes similar to or better than 2750GL could be achieved with up to 2100GL in entitlements (including buybacks) and at least 650GL in environmental offsets (including projects like the Living Murray project). “The fact is that while recovering water through on-farm works is preferable to outright buybacks, it still

means another 450GL of irrigator entitlements transferred to the environment. That means less water in the collective pool for irrigation, and higher water prices. All current and new funding should be directed to first closing the gap to 2750GL, including achieving the 650GL in environmental offsets.” The Government has promised to release a finalised version of the Murray Darling Basin plan before the end of the year.

Australian Water Minister Tony Burke.

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Rural News // november 20, 2012

world 19

Fonterra tries to ease pain of Aus layoffs sudeshk@ruralnews.co.nz

FONTERRA IS talking to Victorian state government officials as it counts down to closing a milk plant employing 130 staff. Discussions are ‘constructive’ and ongoing with the Colac Otway Shire Council and state and federal organisations. The Cororooke site makes soft cheeses and cream products. Production there will be progressively closed over the next year. The council in the region is “immensely disappointed” with Fonterra’s decision. Acting chief executive Jack Green says the factory’s closure will have a significant impact on the community. While the council has not been involved in any discussions relating to the closure, it acknowledges the plant is old and faces significant efficiency issues. “Council’s focus will be working with the State Government to minimise the impact on our community. We will also work with employment agen-

cies and other businesses which may be in a position to help Fonterra employees transition to jobs at other companies if that is required.” Fonterra wants to help those employees who wish to relocate to other sites to identify suitable roles. However, it is unlikely to relocate all employees and there will be redundancies. Fonterra Ingredients Australia managing director Simon Bromell says it is providing outplacement and support services to all employees, and “working with the Victorian Government to ensure everyone at Cororooke has the opportunity to retrain or build on their current skills through government training programmes.” He says the Cororooke plant is at least 100 years old and needs major upgrades to meet environmental and production standards. “While our first preference is always to upgrade and maintain our sites, the challenges we face and the barriers to modernising this particular plant mean

Political con-job RECENT MODELLING by the Murray-Darling Basin Authority found an extra 450 billion litres would bring considerable environmental benefits. However, the National Irrigators Council (NIC) has described the latest modelling as “a political con job that has no basis in reality and will be used as a pawn in a political game to appease the South Australian Government”. NIC chief executive, Tom Chesson, said the modelling is a political fix for a political problem and will not deliver a balanced basin plan. “The assumptions used are similar to improving the on-time running of trains by simply changing the definition of a train being ‘on time’ from leaving three minutes to 15 minutes either side of its scheduled departure,” Chesson said. Chesson said he wasn’t surprised the MDBA hadn’t issued a media release in relation to the modelling and had simply stuck the report up on its website. “MDBA is quite clearly embarrassed to have undertaken modelling using assumptions about which it says it doesn’t even know if they exist in the real world. The MDBA states in the report: ‘Undertaking detailed assessments and analysis to identify whether any of the constraints tested in this study could actually be relaxed was not within the scope of this report’.” Chesson said the situation was farcical. “The impact of taking another four hundred gigalitres from communities would be devastating. To put it in perspective, if it was to come from South Australia it would wipe out the entire SA irrigation industry. “Back in the real the world, using real water, the Government body tasked with delivering the environmental water already recovered could only deliver 662 GL, about half of the 1300 GL water it had available to use for environmental purposes last year. This just goes to show that even the worlds’ best computer models can’t physically deliver water.”

Fonterra wants to help those employees who wish to relocate to other sites to identify suitable roles. the most responsible thing to do is close it.” The council points out the Fonterra factory was part of the fabric of Coro-

rooke and south-west Victoria’s dairy industry for 100 years. “This is a sad day for Colac Otway Shire, and in particular for those

people who work at the plant,” says Jack Green. But he points out Fonterra’s decision was based on a planned rationalisation of its three factories in the region, and did not necessarily reflect on the overall health of the local manufacturing sector. “All indicators suggest that businesses in Colac

Otway Shire are doing well. We are confident that our local manufacturing companies will be in a strong enough position to provide job opportunities to some of the people who may lose their jobs at Fonterra, if they cannot be relocated to other Fonterra sites at Cobden or Warrnambool.”

Fonterra Ingredients Australia’s Simon Bromell.

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Rural News // november 20, 2012

20 agribusiness

China FTA proves beneficial for NZ sheep and beef farmers SCOTT C H AMPIO N

IT’S GOOD to see farmers benefiting as the FTA (free trade agreement between China and New Zealand winds down tariffs on our

sheep and beef products. By 2016 there will be no tariffs to pay on them. Beef + Lamb New Zealand’s analysis of the China FTA showed savings of $55 million on New Zealand

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tions, the China FTA also provides the opportunity to reduce non-tariff barriers and improve trade facilitation measures, such as processes to resolve trade access issues. New Zealand exported at least $1 billion of sheep and beef products, including co-products, to China for the 2011 calendar year. This was a significant increase from 2010, an additional NZ$296 million in value or an increase of about 41% between the years. The main increases in exports, in order of priority, were wool, hides and skins, frozen sheepmeat and fats and casings. China is an important sheepmeat market, being our second largest single country by volume (43,873 tonnes) and fourth by value (NZ$247 million) behind the UK (NZ$534 million), Germany

The China FTA delivers increased export growth opportunities and provides our sheep and beef exports with a competitive advantage compared with products from other markets. (NZ$275 million) and the United States (NZ$256 million) as at June 2012. China is a key market for sheep and beef products, in particular wool, hides and skins and fats and casings. The China FTA delivers increased export growth opportunities and provides our sheep and beef exports with a competitive advantage compared with products from other markets which incur higher tariff rates. As Chinese incomes and demand for protein continue to increase, New Zealand will be well posi-

It was B+LNZ that represented New Zealand sheep and beef farmer interests alongside government’s when the China FTA was being negotiated. B+LNZ is now supporting the Government’s current FTA negotiations with other partners such as Russia/Belarus/Kazakhstan, India and Taiwan. B+LNZ continues to lobby for a New ZealandKorea FTA. Korea is our third-largest beef market – one in which the US and EU have an FTA and so they are now seeing reductions in beef tariffs. It’s very important for us to maintain our competitive position in the Korean market and to secure a high quality comprehensive FTA with Korea as soon as possible. • Dr Scott Champion is chief executive of Beef + Lamb New Zealand

tioned to provide high quality red meat products. The international meat market is highly protected by tariffs, import levies, quotas and non tariff barriers. FTAs are essential for keeping New Zealand ahead of the game by providing new market opportunities and ensuring the ongoing competitiveness of the New Zealand red meat sector in key markets. FTAs also allow New Zealand to maintain its position in markets where our competitors have already achieved preferential access.

Tariff savings from the China FTA on key products from the sheep and beef sector are shown below:New Zealand-China trade and tariff data 2011

Product

Trade value 2011 (NZ$ millions)

FTA tariff rate (2011)

Tariff rate prior to FTA

Tariff saving 2011 (NZ$ millions)

Year duty free access is achieved

Beef

6.7%

12%-25%

0.6

2016

Sheepmeat

193

6.7-12.8%

12%-23%

10.3

2016

Edible offal

2.4-11.1%

12-20%

0.8

2016

Fats and casings

250

3.2-3.6%

8-20%

31.0

2012

Meat meal

2%-15%

0.1

2008

Hides and skins

168

0-5.4%

5%-14%

10.2

2016

Wool

383

0%*

1%*

2.0

Quota access*

TOTAL

1,017

N/A

55.0

*China operatres separate tariff rate quotas for wool fibre and wool tops. New Zealand gained a tariff free country specific quota for wool fibre of 27,563 tonnes in 2011 under the NZ-China FTA. New Zealand can also access a wool fibre quota open to all coutries of 287,000 tonnes.

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Rural News // november 20, 2012

agribusiness 21

NZ agribusiness remains at the forefront

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By the end of the 1980s phrases like nichemarketing were thrown around, we must move away from primary industry, were the calls.

the northern European countries such as our alliance with Holland and

Dutch dairy production. Of course, farming is a tough business and it is never all sunshine and roses. The recent price hike

in the cost of supplies and lower farmgate returns in many sectors – even in dairy – means 2012 hasn’t been the best of years. But where we remain strong is

we have a tangible export base and our products are not just wanted, but needed, around the world. Kiwi agribusiness is at the forefront of interna-

tional agribusiness. New Zealand farming is on the rise, despite the financial turmoil of the past and the challenges that come with working the land in our ever-changing environment. • Francis Wolfgram has 15 years experience in financial markets, primarily in London and Sydney.

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farm subsidies in 1984 followed by a global sharemarket crash in 1987 – at a time New Zealanders were heavily invested in shares – meant financial disaster for many business and farms. By the end of the 1980s phrases like niche-marketing were thrown around, we must move away from primary industry, were the calls. The 1990s saw the rise of Asian superpowers like China. China is the world’s largest producer and consumer of agricultural products. Its agricultural scope is beyond comprehension and New Zealand was one of the first countries to have a free trade agreement with China. I’m hesitant to bring up politics, for obvious reasons, but like her or not Helen Clark was a master negotiator and it was this agreement that she helped engineer as a swan-song before she left parliament. Now John Key, the master trader, has entrenched our current economic relationships with Asia with a recent trip to Indonesia. Outside China this is the largest-growing Asian economy – with a population of 400 million plus. This is what I like to see! Two politicians, from opposite sides, enhancing New Zealand’s trading relationships. I don’t care which party they belong to. These relationships are not restricted to Asia. From the agricultural plains of the Andes – taking in several South American nations – to

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NEW ZEALAND farming is on the rise; its position in the global market place has become prominent as the world tries to feed a growing middle class in some of the former lesserdevolved nations. This is trend is nothing new. However, it wasn’t so long ago New Zealand farming was in crisis. I grew up in the farming heartland of Rongotea, near Fielding in Manawatu, during the late 1970s and 1980s. Although my father was a builder, my uncle and most of the people I went to school with were farmers. A short bike ride from Rongotea village and I’d be on a friend’s farm. I loved hanging out on the farm; there was so much to do for a youngster; it was a great upbringing and one I look back on with fine memories. However, those were tough economic times and farming was going through the biggest changes since its beginnings in New Zealand. On January 1, 1973, the UK joined the European Economic Community (EEC) – an economic free trade mechanism exclusively between certain sovereign states of Europe that no longer exists and has been replaced by the European Union (EU). This forced the UK to take the large majority of her agricultural imports from the EU. Before this, the UK used to account for more than 80% of New Zealand’s agricultural trade. Moving into the 1980s and the removal of

Rural News // november 20, 2012

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3.55

8.16

M Cow - 200kg

-5

3.40

3.45

3.25

4.65

Local Trade - 230kg

-5

4.25

4.30

4.50

P2 Steer - 300kg

n/c

4.10

4.35

7.88

M2 Bull - 300kg

n/c

3.98

4.07

5.63

7.90

P2 Cow - 230kg

n/c

3.15

3.40

5.43

5.63

7.91

M Cow - 200kg

n/c

3.00

3.20

2.93

4.43

Local Trade - 230kg

-3

4.15

4.18

4.25

-20

5.66

5.86

8.11

5.43

PM - 16.0kg

-20

5.68

5.88

8.13

PX - 19.0kg

-20

5.70

5.90

8.15

PH - 22.0kg

-20

5.71

5.91

MX1 - 21kg

n/c

3.20

-20

5.43

5.63

7.86

PM - 16.0kg

-20

5.43

5.63

PX - 19.0kg

-20

5.43

PH - 22.0kg

-20

MX1 -

n/c

4.10

n/c

3.98

-15

7.20

-15

7.85

Change

c/kgCWT YM - 13.5kg

M utton SI Lamb

YM - 13.5kg

North Island 16.0kg M Lamb Price $8.5 M utton

$7.5

21kg

NZ Slaughter

$6.5

1000s

$5.5 5yr Ave Last Year This Year Oct

Nov

Dec

Jan

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

Dec

210

Cattle NI

+37%

24.0

17.5

21.0

142

172

Cattle SI

+48%

11.4

7.7

9.9

8.2

Lamb NZ

+23%

340

278

290

382

Cattle NZ

+40%

35.4

25.2

30.9

31.6

+369%

Bull NI

+38%

5.4

3.9

4.0

5.6

Bull SI

+9%

1.2

1.1

1.4

1.3

Mutton NZ

NZ Weekly Lamb Kill

Str & Hfr NI

+59%

12.6

7.9

12.1

12.2

Last Year

Str & Hfr SI

+50%

6.9

4.6

6.5

5.1

This Year

Cows NI

+5%

6.0

5.7

4.9

5.6

Cows SI

+65%

3.3

2.0

1.8

NZ Weekly Beef Kill 80

Sep

Oct

Change

North Island 300kg Bull Price UK Leg

$4.5

Nov

Dec

Jan

$3.5 $3.0 Aug $4.5

2 Wks Ago

Last Year

5yr Ave

n/c

1.34

2.38

1.80

NZ$/kg

5.80

5.76

10.75

9.21

20 0 Aug

Sep

Oct

Nov

Dec

Jan

Oct

Nov

Dec

Jan

North Island 60kg Stag Price 5yr Ave Last Year This Year

$9.0 $8.5 $8.0

Last Year

5yr Ave

2.17

2.15

2.05

1.56

+13

5.87

5.74

5.81

4.72

Demand Indicator - US 95CL Beef

This Year Sep

Oct

Nov

Dec

Jan

Procurement Indicator

Sep

Jan

Last Year

£1.00 Aug

5yr Ave Last Year

Dec

2 Wks Ago

95CL US$/lb

£1.50

Nov

Last Week

Change

NZ$/kg

South Island 300kg Steer Price

Oct

Export Market Demand

£2.00

This Year

$9.5

Last Week

£/lb

Change

$3.0 Aug

This Year

£2.50

$4.0

$3.5

Last Year

Demand Indicator - UK Leg Price 5yr Ave Last Year This Year

23.4

148

Jan

$4.0

5yr Ave

128

Export Market Demand $5.0

Last Year

150

0 Aug Nov

3 Wks Ago

170

150

Oct

2Wks Ago

171

300 5yr Ave Last Year This Year

Change

+32%

450

Sep

1000s

Estimated Weekly Kill

+14%

600

$5.5

Lamb SI

750

$6.5

NZ Slaughter

Estimated Weekly Kill

Change

c/kgCWT

Lamb NI

South Island 16.0kg M Lamb Price

$7.5

$3.5 Aug

Last Year

-20

4.25

$4.5

2 Wks Ago

5.68 4.25

$8.5

Last Week

-20 -5

Sep

Change

Last Week

-5

$3.5 Aug

Last Year

Change c/kg

Bull - M2 300kg

$4.5

2 Wks Ago

Last Week

NI Lamb

Beef Market Trends

Beef Prices Last Week

Change c/kg

Steer - P2 300kg Venison - AP 60kg

Lamb Market Trends

Meat

$2.00

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI

-1%

103.4%

104.2%

76.7%

65.1%

% Returned SI

-3%

97.4%

100.7%

74.4%

63.2%

Last Year This Year

$1.80 Aug

Sep

Oct

Nov

Dec

Jan

Procurement Indicator

Procurement Indicator - North I.

110% 100% 90% 80% 70% 60% 50% Aug

$2.20

Change

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI

-2%

73.3%

74.9%

79.12%

80.1%

% Returned SI

-1%

67.8%

68.8%

70.0%

73.6%

Last Year This Year Oct

Dec

90%

Procurement Indicator - North I.

80%

$7.5 $7.0 $6.5 Aug $9.5

Sep

Oct

Nov

Dec

Jan

South Island 60kg Stag Price 5yr Ave Last Year This Year

$9.0 $8.5

105% 95% 85% 75% 65% 55% 45% Aug

60% Aug

Last Year This Year Oct

Dec

Last Year This Year Oct

90%

Procurement Indicator - South I. Last Year This Year

Dec 80%

$8.0

Venison Prices

$7.5 $7.0 Aug

70%

Procurement Indicator - South I.

Change Sep

Oct

Nov

Dec

Jan

70%

Last Week

2 Wks Ago

Last Year

5yr Ave

NI Stag - 60kg

-15

7.20

7.35

8.85

8.06

SI Stag - 60kg

-15

7.85

8.00

9.25

8.40

60% Aug

Oct

Dec

Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted). Note: Freight is paid in the North Island but not by all companies in the South Island.

ANZ0672 - Agri RN 70x544.indd 1

Rural News // november 20, 2012

Beef Wool Price Watch Beef farmgate prices start to ease Last week saw the first signs of some easing for farmgate beef prices – particularly in the North Island. Dry weather across most of the North Island and especially in eastern regions is resulting in a decent numbers of cattle flowing out for slaughter, The latest estimated kill data saw a 40% lift in NZ kill numbers week on week. Kill rates are running around 15% ahead of the same time last year and 12% above 5yr average levels. With meat processors ramping up capacity the decent flow of cattle is timely. If there is not some decent moisture soon the kill will spike further and put further downward pressure on prices. US imported beef prices firming US importers are battling to secure manufacturing beef as there are limited offerings from both Australia and New Zealand. The NZ cattle kill is picking up but US importers are finding that most of this product is already committed. Spot demand is improving and this has caused prices to increase in recent weeks. 95CL bull beef is now US$2.17/lb on average while cow is US$2.04/lb.

Lamb Lamb prices fall sharply after chilled trade Lamb prices at the farmgate are now under real downward pressure as the last boats have left NZ shores to meet the Christmas chilled market in the UK. Meat companies pulled back schedules in both islands last week by around 20c/kg. While recent kill rates remain around 11% below longer term averages for this time of year, the kill is currently running between 15-20% above last year. The margin between current the export value for lamb and farmgate prices remains very low for this time of year. Margins are 25% below this time last year and 42% below 5 year average levels. Meat companies will be in the mood to re-claim some margin and get their books back into the black. If the dry continues and the lambs continue to flow lamb expect prices to continue to fall relatively quickly. UK takes more frozen lamb Cheaper NZ frozen lamb and lower UK domestic production have been the main drivers for a lift in lamb exports to the UK. NZ exported 3885t of lamb in Oct to the UK, the highest monthly Oct figure since 2008 (4138t). Meat processors are making headway into surplus frozen stocks, which was reflected in the sharp lift in frozen exports leading up to the new season. As new season lambs start rolling in, exporters shift their focus to chilled lamb exports which typically climb from a 20% share over frozen, to about half of the UK lamb trade through summer. Chilled lamb fetches a premium over frozen product, but surplus frozen lamb remaining in storage will continue to restrict farmgate prices.

Dairy Price Watch Change

08-Nov

01-Nov

Last Year

Indicators in NZ$/T

Coarse Xbred Indic.

-4

3.90

3.94

6.36

Butter

Fine Xbred Indicator

4.72

4.71

6.61

Skim M ilk Powder

Lamb Indicator

M id M icron Indic.

8.57

9.21

Indicators in NZ$

Whole M ilk Powder

FXI

Last Year

+27

3990

3962

4953

-33

4112

4145

4310

+120

4143

4023

4631

+33

4849

4816

4985

Dairy Prices Trends

6,000

CXI

600

Prev. 2 Wks

Cheddar

Wool Indicator Trends

700

Last 2 Wks

Change

SMP But.

5,000

WMP Ched.

500 4,000

400 300 Nov

Jan

Mar

May

Jul

3,000 Nov

Sep

Coarse Xbred Indicator

700

Jan

Mar

May

Jul

Sep

Whole Milk Powder Price (NZ$)

5,500

Last Year

600

This Year

500

4,500 Last Year

400

This Year

300 Aug

Sep

Oct

Nov

3,500 Aug

Dec

Jan

Indicators in US$/T

Overseas Price Indicators

Sep

Oct

Nov

Dec

Jan

Overseas Price Indicators

Change

08-Nov

01-Nov

Last Year

Coarse Xbred Indicator

-4

3.20

3.24

4.85

Butter

n/c

3250

3850

Fine Xbred Indicator

-1

3.87

5.04

Skim Milk Powder

-50

3350

3400

3350

Whole Milk Powder

+75

3375

3300

3600

Cheddar

n/c

3950

3875

Indicators in US$/kg

Lamb Indicator

Mid Micron Indicator

7.02

Wool Indicator in US$

550

Last 2 Wks

Change

Prev. 2 Wks

Last Year

Dairy Prices in US$/Tonne

500

SMP But.

4,500

450 400

WMP Ched.

3,500

350 300

CXI

250 Nov

Jan

FXI Mar

LI May

Jul

2,500 Nov

Sep

Coarse Xbred Indictor in US$

550

Jan

Mar

May

Jul

Sep

Whole Milk Powder Price in US$/T

4,000

500 450

3,500

400 350

3,000

Last Year

300 250 Aug

This Year Sep

Oct

Nov

Dec

Last Year

2,500 Aug

Jan

Currency Watch

Wool Wool demand holding steady While the wool sale in the South Island on Nov 8 saw slightly lower prices for some categories of wool compared to last week’s North Island sale, there is still decent demand in the market. The NZ Wool Services International Coarse Crossbred market indicator eased by 4c to $3.90/kg, while the Fine Crossbred indicator lifted by 1c/kg to $4.72/kg. The Mid Micron indicator eased by 3c compared to the last South Island sale and is now sitting at $8.57/kg. There were just over 10,300 bales on offer. This was significantly more than was rostered and some growers’ reserve prices were fairly inflated after the high prices of two weeks prior. As a result the proportion of bales that were passed in lifted to 25%. But there was still good competition on show with China, India and Western Europe buyers leading the charge and there remains a underlying strength in the market.

This Year Sep

2 Wks Ago

4 Wks Ago

Last Year

US dollar

0.815

0.826

0.820

0.777

Euro

0.639

0.634

0.571

0.80

UK pound

0.510

0.513

0.511

0.488

0.75

Aus dollar

0.783

0.795

0.798

0.766

Japan yen

64.76

66.32

64.25

60.35

0.70 Aug

Euro

Dec

Jan

Last Year This Year

0.85

0.54

0.64

Sep

Oct

Nov

Dec

Jan

UK Pound

0.52

0.60

0.50 Last Year

0.56 0.52

0.90

Nov

US Dollar

Last Week

vs. NZ Dollar

Oct

This Year Aug

Sep

Oct

Nov

Dec

Jan

Last Year This Year

0.48 0.46 Aug

Sep

Oct

Nov

Dec

Jan

30/10/12 4:45 PM

Get the lowdown on rural Beef + Lamb backs industry recycling programme Over the last few years New Zealand’s clean green image has been the subject of much debate in the media both locally and overseas. Beef + Lamb New Zealand General Manager Farm, Richard Wakelin says our reputation is at stake every day. He says the goalposts are continually shifting, with consumers increasingly concerned about animal welfare and how goods are produced. With this in mind, the organisation is supporting the Agrecovery Rural Recycling programme in their drive to encourage more farmers to recycle their farm plastics. “Beef + Lamb New Zealand is right behind Agrecovery because it’s a perfect fit with good management practices that support sustainable farming systems,” says Richard. “Keeping the farm tidy and operating to its full potential includes careful and considered disposal of contaminated materials and hazardous substances. “Simply put this is good management practice to support sustainable farms for future generations and it can also contribute to positive market drivers.” A recent article by Pure Advantage, an organisation developing the New Zealand business case for green growth, supports this, stating being clean and green is vital for exporters for three reasons; continued market access, brand strength, and rebuffing competitors. The Pure Advantage article “Access to Export Markets” cites a 2008 report which states “a 5% reputational loss in primary products and international tourism will cost the economy more than 22,000 jobs, and $455 million direct loss p.a.” and goes on to say that New Zealand exporters are facing serious green scrutiny by international mega-retailers who use their buying

power to transform their entire supply chains by requiring that suppliers disclose carbon, water and ecosystem effects. Good agricultural and horticultural practices such as recycling plastic waste, backed up by auditable reports of recycling activity which Agrecovery can provide, are simple steps in proving that our 100% Pure brand is not green washing but a fact farmers and growers can demonstrate one property at a time. Look who’s got in behind the Agrecovery Rural Recycling Programme!

Agrecovery – 59 The Agrecovery Container programme now has 59 brand owners giving farmers and growers the opportunity to recycle the majority of their plastic containers for free. The 59 participating companies cover the majority of New Zealand’s agrichemical, biological, animal health and dairy hygiene products. Starting in 2007 the programme had just 12 brand owners. The impressive increase in support to 59 brand owners shows the growing emphasis on product stewardship and good environmental practice within the primary industry with companies joining because of their commitment to sustainable production or due to requests from customers.

What about my drums? To complement the Container recycling programme, Agrecovery also offers large drum recovery for 61 – 1000 litre drums and IBCs. Duncan Scotland of Agrecovery says “It’s important that farmers are aware of the original contents of drums to avoid using an agrichemical drum inappropriately, for example as storage for horse feed or water troughs for animals.” With free on-property collection for 20 brands of steel and plastic drums, it’s easy to ensure drums are appropriately disposed of. Drums collected by Agrecovery are supplied back to the original brand owners, reconditioned for reuse by manufacturers or recycled to approved end use applications. Drums from other brands can also be collected for $10 + gst per drum. To book collection simply contact Agrecovery on 0800 AGRECOVERY.

Burning and burial – the facts Burial pits and burning piles are commonplace on many farms with all manner of waste materials, both household and farm related, included in the mix. An abundance of available land and the distance to dedicated landfills has meant that the convenience of burning or burial on-farm has been the traditional method of waste disposal for farmers. However there is clear evidence of the health risks and negative environmental impacts of this habitual behaviour, specifically in relation to waste plastics. Now with the availability of recycling services for plastic containers, drums and silage and feed products, farmers and growers should be reconsidering how they dispose of these. A study done in 2003 for the New Zealand Agrichemical Education Trust (NZAET) looked at five methods of disposing of farm wastes, with three of these being on-farm burial, onfarm burning and drop-off at a collection facility for recycling.

Burning Not surprisingly the report outlined a number of issues and risks associated with on-farm burning of waste plastics. Those of most note are the risks to health from the burning of domestic and farm wastes in conjunction with waste plastics, the burning of residual chemicals (from un-rinsed containers), plus the risks associated with ash residue and leachate from fires. A long list of health risks were given, from simple headaches and aggravated respiratory conditions, through to severe or

long term health problems. This is mostly due to smoke and particulates from fires, but the resulting ash and leachate chemicals can also potentially affect people, farm stock or aquatic life. Burial While burial was shown to have a lesser impact than burning in the study, it still falls below recycling in terms of overall impact on health and the environment. The HDPE and LDPE plastics used in containers and feed wrap are inert and not biodegradable, however surface photo degradation due to exposure to sunlight breaks down the plastic, particularly feed plastics, into small pieces. These can be ingested by stock and also by marine life, notably after storms or periods of high winds when buried or discarded plastics can make their way into waterways and then to the ocean. In addition, leachate from poorly rinsed chemical containers, containing herbicides, pesticides or undesirable nutrients, can potentially affect aquatic life and/or farm stock. As well as unsightly plastic films caught in fence lines, contractors and farmers also experience buried plastic being pulled up during ploughing, drain laying and other farm activities, causing frustration and costly delays. Recycling The study was clear that recycling of plastics has the least negative impact on the environment, resulting “in a net avoided burden for the air acidification, human toxicity, greenhouse effect and depletion of non renewable resources”. Even with transportation and financial considerations taken into account, recycling rated best, burning worst, and landfill or on-farm landfills, somewhere in between. Most New Zealand manufacturers and distributors of silage plastics and ag/hort products in plastic containers have got behind the Agrecovery programme which offers a simple solution to the traditional practices of burning and burial. These companies recognise that the safe sustainable solutions offered by Agrecovery are available and necessary, so financially support these programmes to make them either free, or as affordable as possible, for farmers and growers.

www.agrecovery.co.nz | 0800 AGRECOVERY | info@agrecovery.co.nz Terms and Conditions apply to Agrecovery programmes

What’s in your shed? A recent incident featured in the media where six pigs and a cat reportedly died as a result of exposure to an organo-phosphorus pesticide left in a shed in Ashburton have highlighted the importance of safe disposal of unwanted or expired agrichemicals. The Agrecovery Chemicals programme schedules periodic regional collection events for these agrichemicals throughout the year. The cost of collection and disposal is funded in any of four ways: a levy paid by brand owners on every litre/kilo of eligible product; local government subsidies; central government funding; or user pays fees. Register your unwanted agrichemicals with Agrecovery online or by freephone 0800 AGRECOVERY. Please note that the scheduling of collections is dependent on available funding and regional demand.

GET WITH THE PRO At the 2012 National Agricultural Fieldays we asked people about their key motivators for recycling farm waste. Now we’ve added another motivator - the chance to WIN A $100 PREZZY CARD, simply by registering with Agrecovery! To enter the prize draw register online at www.agrecovery.co.nz or freephone 0800 AGRECOVERY (247 326). Entries close 31 December 2012. Prize drawn 18th January 2013. Terms and Conditions apply.

recycling and counting! Each brand owner that joins the programme pays a small levy on each litre of product sold. This levy, paid to the Agrecovery Foundation, a not-for-profit charitable trust, funds the Agrecovery Container programme and also contributes to the cost of the Agrecovery Chemicals programme. There are 70 collections sites across the country for containers up to and including 60 litres in size. To help us effectively recycle your containers they must be empty, triple rinsed and clean with no chemical residue. Please leave the product label on. Agrecovery also offers event-based or on-property collections where sufficient demand exists – contact us for more information.

Support the brands that support you! EMPTY TRIPLE-RINSED PLASTIC CONTAINERS, UP TO AND INCLUDING 60 LITRES IN SIZE, BELONGING TO THESE BRAND OWNERS ARE ELIGIBLE FOR FREE RECYCLING WITH AGRECOVERY

Disposal of feed plastics – a growing problem? With our farmers using enough silage wrap to circle the earth eight times in an average year, some would say we have a disposal problem. However with simple solutions like the Agrecovery Wrap recycling programme, supported by New Zealand’s leading silage plastic and feed suppliers, inappropriate disposal of used feed plastics needn’t be an issue. On-farm collection, two recycling bag sizes, and an optional bin for the large bag, all make it easier for farmers to take the responsible decision to recycle instead of burning or burial. Richard Burdon of Glen Dene station between Lakes Wanaka and Hawea uses the Wrap recycling programme, commenting that it is a very straight forward process. “Because of the recreational side of our business and the public easement, how we run the property is very much on show, so recycling is an important part of our environmental management. But I would say that just because you live up a back road doesn’t mean you should do anything differently. “Clearly balage wrap is better to be recycled than disposed of by other means. And in addition there’s the convenience factor with the on-farm collection. It’s so easy to roll it up straight off the bale and stuff it in the bags. Do it once and get it picked up – it’s simple.” Buy Agrecovery recycling bags at your local rural retailer and book on-farm collection via www.agrecovery.co.nz or on 0800 AGRECOVERY.

WHO’S MISSING?

DO YOU USE PRODUCTS OR BRANDS THAT AREN’T LISTED HERE?

A solution for your crop protection net When your crop net comes to the end of its useful life, you can recycle it through the Agrecovery Net programme, supported by Scarecrow. For full details of how to prepare your net for recycling, where to buy recycling bags, and our on-property collection, visit www.agrecovery. co.nz or call 0800 AGRECOVERY.

OGRAMME AND WIN!

Simply tell us the brand or product name so we can invite them to join Agrecovery and you’ll go in the draw to WIN A $100 PREZZY CARD | Email info@agrecovery.co.nz or call 0800 AGRECOVERY Entries close 31 December 2012. Prize drawn 18th January 2013. Terms and Conditions apply.

✂ ☑ ☐

PRODUCT TYPE

AGRECOVERY RURAL RECYCLING CHECKLIST SIZE

COLLECTION TYPE

BOOKING COSTS REQUIRED?

NOTES

Plastic Containers 0-60 litres Over 70 collection No booking sites around NZ. required Contact us for onproperty collection for large users

FREE for participating brand owners containers. Others $2.00 + GST per 10L container - contact Agrecovery for more information

☐

Steel & Plastic Drums & IBCs

61-1000 litres

On-property collection

FREE for participating Must be empty, triple rinsed and drum brands reasonably clean Others: $10.00 + GST per drum Labels must be left on

☐

Agrichemicals

Any

Periodic regional Online or collections freephone

FREE, subsidised or user pays depending on product

Unknown or mixed agrichemicals can also be booked for disposal

☐

Silage Plastics

Any

On-property collection

Online or freephone

Small recycling bag $13.80 + GST (RRP) Large recycling bag $69.00 + GST (RRP) Bag prices include collection Large bin $550.00 + GST (RRP)

Must be shaken free of excessive organic and water contamination Bale net must be placed in separate recycling bag

Online or freephone

Large recycling bag $69.00 + GST (RRP) Bag price includes collection

Must be free of posts and other contaminants

☐

Fiber Fresh Feed Bags

Crop Protection Any Net

By freephone

90 day service guarantee

On-property collection

Must be empty, triple rinsed and free from residue and dirt inside and out HDPE plastic only Labels must be left on All containers will be inspected before being accepted

Rural News // november 20, 2012

26 op opinion edna

editorial

Water wars averted – for now THE LAST of three reports from the Land and Water Forum have been released and it’s timely to reflect on the achievements of the somewhat disparate groups that make it up – all of whom have quite specific views on how the nation’s fresh water should be managed. To bring 58 organisations around the table, hold them there for two years and get some agreement is impressive. A lot of credit must go to Alastair Bisley, former senior public servant and consummate diplomat. As Bisley points out, if nothing else, LAWF has helped avert the ‘water wars’ and this is probably true. It’s also true that opposing parties have a better understanding of each other’s position and there’s been acceptance by all parties of the need for compromise. LAWF seem to be a pretty happy space. However, while it’s lovely to see Bryce Johnson of Fish and Game and former Feds man Lachlan McKenzie sharing a lemonade together and seemingly getting on well, the goodwill and compromise is certainly not there in the main battle ground of the RMA – the regions. District council and regional council plans are flashpoints and the LAWF collaborative approach has, by and large, not percolated down the line. Right now Fish and Game is slugging it out in the High Court with Feds and HortNZ and with more plans up for review, there’s every indication of more unseemly and un-LAWF like scraps on the horizon. Perhaps one should judge LAWF on its bigpicture success and the fact that government now has a series of recommendations which it can argue have widespread support. Some of the RMA reforms are likely to come from LAWF recommendations and so too will some general national policy guidelines aimed at getting more consistency into the local government planning processes. The inconsistency of local government processes and decisions is appalling. Some councils are great, others woeful. There is certainly a place for local solutions, but there is no place for widely differing processes and odd outcomes that kill economic growth. LAWF has shown it’s possible to get agreement on hard issues, but this approach has to be enduring and locked in place or else the water wars of the past will quickly re-ignite.

“Probably just one greenie wanting to show off his compost to another!”

the hound

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

Appropriate

Creaming it

Value-add

YMCA?

Battle lost?

WOOLS OF NZ’s (WNZ) latest bid for grower cash hit a snag, even before its formal launch, earlier this month. Apparently, media were notified to be in Christchurch to read the new prospectus and quiz WNZ chair Mark Shadbolt about the new proposal. However, this was called off when Shadbolt’s plane was delayed getting from Rotorua to Christchurch for the launch by fog. A cynical mate of yours truly reckons it was quite appropriate that Shadbolt was delayed by fog to make this announcement – considering how fog-bound and delayed the whole strong wool marketing process has been over the past few years.

ACCORDING TO its annual report, 26 Fonterra staff, 13 of whom are based overseas, were paid at least $1 million in the year to June 2012— up from nine in 2002. The biggest earner was former top cheese Andrew Ferrier who picked up $8.2 million. While it is true the co-op is an international organisation, this old mutt struggles to compute how four times as many staff can be earning $1m-plus annual salaries at Fonterra than 10 years ago, when its earnings and payout to farmers has not increased anywhere near ten-fold over the same decade.

SPEAKING OF Fonterra, right-wing blogger Cactus Kate has cheekily suggested the co-op is finally delivering some value-add after it confirmed news reports that a milk powder container involved in a 165kg drug bust in Algeria was one of theirs. The prickly commentator rather facetiously claimed in her blog that: “New Zealand cannot get rich selling peasant dairy products like milk powder” and the news it had diversified into shipping another white powder was a good move. A mate of the Hounds’ claims Fonterra was now shipping drugs was ironic as he saw them as a bunch of dopes anyway.

YOUR OLD mate reckons West Coast-Tasman MP and Labour’s Primary Industries spokesman Damien O’Connor has found himself a bit irrelevant as the lone voice speaking for agriculture in the opposition. However, he did gain some media exposure recently when he was in New York on a junket – sorry, “parliamentary business” – and the storm caused all his meetings to be cancelled. The Hound’s not sure what the he did in New York while it was in lockdown, but can be certain with O’Connor’s view on the gaggle of gays in his caucus he wouldn’t be hitting the nightclubs and singing along to the Village People’s YMCA!!

THE HOUND is constantly amused by the doom merchants at organisations such as the Sustainability Council and Soil and Health NZ who keep making ‘the end of the world as we know’ predictions – due to GM and GE technologies. However, one wonders how much life is left in the anti-GM debate internationally when California – one of the most, if not the most, liberal and healthconscious of states in the US – voted against introducing mandatory labelling for GM content in processed foods in the recent US elections. Perhaps the sky is not falling after all.

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Rural News // november 20, 2012

opinion 27

Trees good for the soul and pocket AS THE forest industry is again struggling, there are groups of farmers who are able to float above it all. Farm foresters live by the maxim “trees don’t have to be chopped down today.” They are in the industry for the long haul and know a tree in the ground continues to grow, so keeps on making money. They accept there will be speed bumps along the way – some severe. Farm forestry brings together a disparate group of people bound together by their passionate enthusiasm for growing trees. It was back in the late 1950s that the farm forestry concept developed. Few of the early pioneers are still with us, but names such as Milligan, Stephens, Wise, Flett, Edmonds and Barr are treated with reverence. The South Otago Farm Forestry Association is typical of the farm forestry ethos. It went from one man growing seedlings on a quarter-acre nursery in the early 1960s to a group of 350 members, who in one year planted two million trees. Farm forestry plantings in South Otago went from a few hectares to sev-

eral thousand. Most of those original plantings have been logged and replanted. One South Otago forester’s first planting was about 5ha put in the same year he got married in the mid-1950s. As such it became a family venture. Eventually 40% of the property was in trees. Early forestry plantings were usually on steeper, second-grade, low-producing, class six, seven and eight country. In trees, steep rugged country and gullies could be fenced off and tidied up and then after about 30 years the payback began. There was a wait, but foresters saw it as a period when their asset was growing. There was also the shelter aspect which came from early plantings. Those early days were helped along with Government ‘one for one’ subsidies. Increasingly foresters were now putting in trees for their children, in some cases grandchildren. With about a 25-30 year wait until harvesting; the extra income from the trees could come at

an opportune time. And it was like money in the bank that could be brought out when times were right. It could be a new house, an overseas trip, a top-up on superannuation, or helping with succession issues. Another forester suggested with continual plantings the income stream became the payback, which could go on indefinitely. For those who started planting in the 1960s the real returns could be accurately accessed. Another early forester with several hundred ha in trees has been harvesting for nearly a decade and knows the returns and the costs. It’s the costs that are critical and to get a correct return they must all be included – going back to the beginning when the trees were planted. This included rates, interest, site preparation, all silviculture costs from planting to harvesting and, roading. All the costs were subtracted from the gross income figure. Once this net figure was known it

was divided by the number of hectares harvested. On this forester’s property the returns ranged from $550 to $1064/ha for every year the tree was in the ground; the totals ranged from $23,000 to $41,000/ha. The trees bringing in the best returns for that season were 38 years old. Cattle and sheep returns would be minimal on this type

of country. In Otago and Southland 30% of the areas planted are farm forestry trees. This means for the bigger operators it’s important to work in with the corporates with their export marketing skills. This was especially so during a downturn. Having a good consultant was of great value.

Making co-operatives better ra ms ey m a rg oli s

I AM often asked, how could my cooperative be better? My answer is often just one sentence: ‘If more of the people who belong to a cooperative fully understood how their cooperative works and how to maximise the benefit of membership, all co-ops would improve greatly.’ Here’s an example: a small co-op asked me to speak to a member meeting on the reasons that selling all they produce to the cooperative is more beneficial to their members than only selling half. Some members of this co-op believed that selling some of their product elsewhere would ‘keep the co-op honest’. The result was disastrous: with contracts to honour, the co-op was routinely forced to buy from non-member sources at variable spot prices to fulfil those contracts, making a loss on some contracts. So, because of the ignorance of some members, all the members of

that co-op lost out. I suggested to the people at that meeting that they view their co-op as their other business. When their co-op did well, I told them, they did well, and when their co-op didn’t do well, they didn’t do well. Cooperatives take the long view because they don’t have financial investors who are only interested in maximising the dividend on and the value of their shares. Cooperatives do not generate profit for its own sake; they exist to give benefit to members – however those members define that benefit. Members should be asking, ‘how well is my co-op doing?’ and ‘what can we as members do to ensure the co-op is successful?’. Members should be aware of how their co-op makes money and distributes it, and commit to that process, rather than just asking, ‘how do I make money through the co-op?’ It’s your co-op’s overall strategy for, e.g. taking your raw material and selling high value products,

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

that improves your income. A coop’s five to ten year strategy is really important here. You may need to be patient: there will be a point at which you will see a real increase in value from your efforts. It will take time. The decision to join a co-op is a strategic matter, you’re in it for the long run. There will be lumps and bumps along the way, so having made that decision you should commit to it. When you support your other business so it can perform as well as your farm or orchard, there’s more chance of getting a better return. If you don’t want to join the appropriate cooperative, go ahead and supply the investor owned firm which offers a dollar more. But remember: you will lose out in the end because investor-owned firms generally seek to drive down the price they pay you, or drive up what they charge you. • Ramsey Margolis is executive director, New Zealand Cooperatives Association.

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Rural News // november 20, 2012

28 opinion Fracking – think twice about it claimed to be relatively little gas loss or land use disruption. Coal seam gas (methane) is a product of shallower and younger geology. A much closer network of well heads linked by pipelines is needed to capture the gas, and there is a much greater potential for leakage and pollution of groundwater. Other land uses such as agriculture are greatly

restricted (if not excluded) for the life of the field. Secondly, fracking uses a lot of water. Is that water available, and if it isn’t, who is likely to get priority – agriculture or mining? Thirdly, if you think there is something in it for you in New Zealand, think again. About 80 years ago the government of the day nationalised the oil and gas resource; if they are under your land they aren’t yours.

Drew Hutton, mentioned by Dr Judd, spoke in Gore on coal seam gas mining in Queensland. There the gas belongs to the nation, mining takes priority over agriculture and the process of gas extraction sterilises the land with wells and pipes until the field is exhausted a couple of generations hence. In Southland, where I live, prospecting appli-

ag twits cations mostly mention coal seam gas. Fracking isn’t mentioned at this stage and Environment Southland says that if the need arises it would need a resource consent, as would its water demand. The serious questions have yet to be asked. John Purey-Cust (a forester and former editor of the New Zealand Journal of Forestry) 4RD Gore

E ID

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Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all wilsonfonterra: Hey @henryfonterra how come under your watch the number of our executives earning $1million a year jumped by 400% during the past decade? #hospitalpass henryfonterra: Well @jwilsonfonterra that’s no longer my problem. It’s now your job to justify such payments. I’m just here to provide guidance and collect my director fees. #enjoytheride dshearerlabour: Why does @johnkeypm think it acceptable to call the former red, shirtwearing Man United footballer David Beckham ‘thick as bat sh*t’? #proudtowearagayredshirt johnkeypm: I never said that. Thick as pig sh*t maybe. However, I do think NZers would be mad as bat sh*t to elect a coalition that would have Winston, Rusty and Harry Potter Parker as joint finance ministers! #thatwouldbereallygay

IK AL UY FO UR

DR JUDD’S world view on fracking (Rural News 23/10) is simplistic and overlooks the inevitable variation in detail between one place and another. Firstly, not all fracking scenes are the same – is the search for shale gas or for coal seam gas; shale gas is found deep down, the drillings and wells may be widely spaced, and due to the depth and intervening geology there is

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bjohnsonfish&game: Dear Justice Kos @ envirocourt please find enclosed your annual membership to F&G. Looking forward to your unbiased presiding over the One Plan appeal. #perceptioniseverything FedFarmers: Hey @bjohnsonfish&game wonder what would you would be saying about Justice Kos’s suitability to hear the One Plan appeal if he was a paid-up member of Fed Farmers? #notagoodlook damienoconnormp: Not wanting to over-egg things, but I recently witnessed @superstormsandy in New York and can safely say it’s a direct result of Fonterra’s decision to implement TAF!#aratherlongbow rnormangreens: I hate to contradict @ damienoconnormp, but @superstormsandy is a direct result of the ‘ecocide’ inflicted on the world by @johnkeypm and National for excluding agriculture from the newly revised ETS. #planetgreen winstonpetersmp: To @hondavidcarterminister, can your office tell my highly-paid, taxpayer-funded research team exactly how to spell Wayne McNee’s job title? #focusingontheimportantissues

Horny issue GIVEN THAT Minimum Standard 7e of the Code of Welfare for the Transport of Animals, 2011, effectively prohibits horned cattle from being mob-trucked, how come almost every pen at the saleyards has some horned cattle in it? It’s about time the MPI inspectors did their job. Animal welfare is supposed to be their responsibility and animals get injured by other animals with horns. Lily Lewis, Northland

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Rural News // november 20, 2012

management: grassland conference 29

Nutrient management to the fore Gore hosted the New Zealand Grassland Association’s 74th annual conference earlier this month, attracting 400 delegates for a packed programme of applied agricultural science and a couple of spectacular field trips. Andrew Swallow reports. Agresearch’s Chris Smith was one of several researchers to speak on phosphate management. “There’s a significant yield response to phosphate fertiliser but no significant difference between the different forms of fertiliser,” he pointed out, presenting a paper he and colleague Richard McDowell submitted based on three years of research at Tussock Creek, Southland. However, the same couldn’t be said of runoff from the gently slop• Test soil nitrogen to tune winter crop ing dairy pasture in the 21 fertiliser. days after fertiliser was • Beware leaching-prone sites with applied: on average, 47% winter crops. less P was lost where cal• Consider phosphate timing and type cium phosphate was used to limit losses. compared to superphos• Use more N and cut and carry to phate. mine excess P. Serpentine super cut • Nitrification inhibitors “not a silver losses nearly as much. bullet”. “With the other two fertilis-

CHOOSE PHOSPHATE fertiliser type and timing carefully; check soil nitrogen before winter cropping; be aware of the limitations of nitrification inhibitors: those were just a few of the many take-home messages on nutrient management for farmer delegates at the Grassland Association’s conference in Gore earlier this month.

nutrient nuggets

ers we’ve halved that [superphosphate] P loss,” noted Smith. Weather and soil condition for three weeks post application was a key factor, and Smith and McDowell recommend that highly water-soluble P fertiliser applications should be timed to avoid run-off events, or if that’s impossible, use a low water-soluble product. For farms faced with excessive Olsen P levels already in the soil, Lincoln University and Agresearch scientist Rosalind Dodd presented work suggesting that applying more nitrogen could be a practical solution to more quickly bring down the P status of those leaching-risk soils. “Target your silage cuts to these paddocks and increase the nitrogen application and you can get a significant reduction in whole-farm P losses,” she told conference delegates. While the technique didn’t work on an allophonic soil site, it did on brown soil and pumice sites. As phosphate is

Recognised hot-spot but winter crop losses aren’t all grazing, delegates heard.

otherwise slow to decline, harvesting the nutrient in this way could speed a reduction to levels which present less of a pollution risk, she suggested. Meanwhile they found there was no increase in nitrate leachate even when 300kg N/ha was applied. Other papers reported research on nitrate losses from winter forage crops, and mitigation measures such as dicy-

andiamide (DCD). On a leaching-prone site near Five Rivers, Southland, Smith and other Agresearch colleagues found 78kg/ha of nitrogen was lost in drainage on average over three years, with a trend to higher losses the longer the site was cropped. “These losses are high… It’s estimated 40% of dairy system losses come from to page 30

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Rural News // november 20, 2012

30 management: grassland conference

Clovers not forgotten forage JUST BECAUSE the new Dairy NZ Forage Value Index is based on pure ryegrass plot data, it doesn’t mean clover has been forgotten. Moments after presenting a paper summarising development of the ground-breaking grass cultivar ranking system launched earlier this year, DairyNZ’s David Chapman was challenged on whether it would rein-

force “prejudices against clover.” “No, we still love clover, but the point is a good one,” he told the Grassland Association conference in Gore. “We need more information on the relationship between grass and clover output…. It’s an important issue that has to be in there.” As it is, the index is still building the ryegrass database with about half

the commercially available cultivars yet to be included. The clover question came from Lincoln University’s Derek Moot, a champion of legumes, notably lucerne, on which he presented an establishment focussed paper later in the conference. “If you use a lot of seed, a lot of plants will die, and they actually die over that summer period… It’s com-

petition for light that kills them.” Sowing rates as low as 2kg/ha can produce an adequate stand, but a safer bet would be 7kg/ha, he suggested. Trials with 7kg/ ha through to 16kg/ha at Lincoln found all established adequate stands, with no significant differences in yield. By year six all stands were down to 80 plants per sq m. Unusually, the trials were autumn-sown, and demonstrated that’s an option provided it’s done before soil temperature drops below 15 deg C. “But I’m not advocating autumn sowing. If you can spring sow, I’d still say spring sow,” Moot told delegates. Yields averaged 10tDM/ ha in the first year following autumn sowing, and averaged 13t/ha thereafter.

As for the plant’s water use efficiency, in year three of the trial 30kg of drymatter per hectare grew with every millimetre of rain, but in year five, a wetter year, that fell to 24kgDM/ha/mm despite what was actually a higher total yield. “The timing of rainfall is really important in terms of the water use you get.” Moot added that with ryegrass you might get 20kgDM/ha/mm under irrigation, falling to about 10kgDM/ha/mm on dryland. Corry Matthew, Massey University, presented a paper on the quest for drought tolerance in ryegrass. “All of us are waiting for that magic ryegrass that can grow in the summer,” he admitted. Lines bred from Spanish germplasm appear

Forage value: the new index is a powerful tool, DairyNZ’s David Chapman told conference delegates.

better able to maintain summer production with enhanced water use efficiency, but it’s going to be a long haul for breeders to integrate traits such as deeper rooting or leaves

able to pull more water out of the soil, he said. Ryegrass is already pretty powerful in that respect, as experiments to measure the pull it exerts illustrate.

Nutrient management to the fore from page 29

these wintering crops,” Smith noted. At Five Rivers, applications of granular DCD up to a week after grazing failed to reduce losses, though “nearly 50% of that nitrogen was lost before the cows even went near that crop,” he added. Meanwhile trials on pumice soil in the central North Island, presented in Gore by Aaron Stafford, Ballance Agrinutrients, found granular DCD applied post grazing cut

nitrate loss by 27kgN/ha in 2008 and 47kgN/ha in 2009 – 20% and 27% reductions respectively. However, as the percentages suggest, total losses were again high, at 132kgN/ha and 173kgN/ha, and that was only from the start of grazing in May to when soil drainage ceased in November/December. Stafford acknowledged “DCD is not a silver bullet.” “Firstly we’ve got to get that nitrogen supply and demand aligned going into winter,” he suggested. “…

then stop the urine from landing on the paddock.” As an earlier paper at the conference had shown, an 18t/ ha forage brassica crop contains up to 350kgN/ha, which the cow then concentrates into urine patches, he noted. Smith suggested forage crop growers need to take a leaf out of cropping farmers’ books, and test for soil mineral nitrogen before sowing, and tune fertiliser nitrogen requirement accordingly, if they weren’t already doing so.

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Rural News // november 20, 2012

management: grassland conference 31

Organics overlooking macro-nutrient needs? SUSTAINABLE NUTRIENT management on organic dairy farms is an emerging challenge, say authors of a study modelling the nutrient trends on eight such properties. On most of the farms studied they found a “mismatch” in nutrient supply, notably phosphate, and off-take in product, explained Massey University researcher David Horne to the Grassland Association conference earlier this month. “Unless there is a major intervention this does not bode well for organic farms going forward,” he warned. The Overseer Nutrient Budgeting model used to analyse the findings of the survey of the eight farms had better news when it came to nitrate losses. “The nitrogen losses predicted were only 50 to

60% of those of conventional farms.” However, when losses were measured against milksolids produced, rather than land area, the organic advantage was much less. “Organic farms are still superior but the gap is narrowing… A conventional farm would need to be leaching 29kg of N per hectare and producing 1200kgMS/ha to match the organic [losses of N per kgMS].” The paper notes Dairy NZ data suggests 35kgN/ ha lost is the norm under conventional systems. Alternatively, the organic farms would need to produce 1200kgMS/ha at the mean nitrate loss level predicted from the survey results – 18kgN/ha – to “re-establish a clear advantage to the conventional,” said Horne.

Cropping boost CROPPING A slice of the milking platform can boost returns, as shown by the results of a five-year trial in Taranaki presented at the Gore conference. However, management must be spot on. “If you’re not doing a good job as an all grass farmer, then doing this is not going to make you any extra money,” warned Joe Clough of PGG Wrightson Consulting. The trial looked at returns from two farmlets on the Waimate West demonstration farm, 2007 to 2012. One was all grass, the other had 10-17% cropped on rotation with maize (for silage), turnips, chicory, Italian ryegrass or oats. In the first two years operating profit of the farmlet including cropping was slightly lower than the all pasture unit but in years 3-5 returns pulled ahead. “By the final year there was quite a substantial advantage [with cropping], almost $1000/ha,” noted Clough. “From our perspective the system adopted did have the potential to produce a lot more and put more money into farmers’ pockets.”

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“Remember, the organic farms were only producing 800kgMS/ha so you’d be looking for a 50% increase in production.” A key finding of the survey is that the “main nutrients” of nitrogen, phos-

phate and potash appear to be getting “scant attention on organic farms, certainly compared to their conventional neighbours.” All the case study farmers – four in Waikato, two in Taranaki, one from the

Central Plateau, one in Manawatu – talked about the importance of “soil biology.” However, the study found most were unclear how “biology” affected nutrient supply.

David Horne

Rural News // november 20, 2012

32 management

Grazers fit better than beef GARE T H GILLAT T

DAIRY GRAZING is letting a Northland sheep farmer run an alternative stock class with a better margin than beef and at less risk on a tricky soil type. John and Geraldine Taylor run 280 dairy heifers, 700 breeding ewes and

200 hoggets on 179ha at Te Arai, an hour northeast of Auckland. The property is mostly podzolised Wharekohe silt loam, a soil porous enough to make nutrient retention almost impossible but still at risk of damage in wet weather. Running anything heavier than a heifer

in winter can seriously pug paddocks, says Taylor. “We’re always keen to get animals off the property by the end of May before their second winter.” Initially they ran an all sheep operation but introduced dairy grazers in the 1980s to remain profit-

able after the removal of subsidies. They were preferred to beef cattle as they offered some certainty of income without taking on debt. Getting animals wasn’t a problem as they were surrounded by dairy farms and the process turned out to be something of a natu-

ral progression. “We had some surplus feed one year and one or two dairy guys approached us. Then one or two became three or four and it grew from there.” The couple’s bank was sceptical at first, but Taylor says their views soon changed when they

John Taylor explains his system to the field day.

saw the regular cashflow and profitability that grazing offered. However, the 2010 drought temporarily derailed things.

I have credits his good production on the fact they come back from us and hold production after calving.” Dairy grazing nets the

Farm facts

• Area: 179 ha • Terrain: Rolling silt-loam podzol • Stock: 280 dairy heifers, 700 breeding ewes, 200 hoggets • Location: 1 hour northeast of Auckland

“We came out… with almost no feed so we had to ask a number of our usual people to take their stock back. When we had sorted ourselves out and went back to them next season most of them had made other arrangements.” Consequently last year they signed on with the New Zealand Grazing Company to build up stock numbers again. Taylor says while NZGC’s contract conditions can be strict, they are definitely obtainable. “If you do your side of the bargain everything is right… Dairy farmers want their heifers in better and better order. The local guy

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to page 33

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Taylor’s an average of $7 per heifer per week bringing in at least $156,000/ year. At a Beef + Lamb field day on the property recently a Farmax comparison with beef finishing at a similar stocking rate and long-term average schedule prices found beef trailing by $29,130. But Taylor says running grazers requires more work than finishing or store beef operations, if growth rates and animal condition is to be kept up, as it must be. “It is one thing that gets you out of bed in the morning, knowing that they’re not your stock… It’s definitely an added

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Extensive fencing is paying off for the Taylor’s. Having redesigned paddocks and replaced open ditch drains with covered flexipipes in the late 1980s, in 2006 they set about fencing off remaining open waterways, subsidised by Auckland Regional Council and Rodney Natural Heritage Fund. John says some have questioned this work, and the amount of land fenced off, but he says he’s seen real financial benefits, including better growth rates and easier stock management. Stock drinking from troughs instead of streams is a factor, as is time saved not searching for stock in gullies, streams, wetlands and drains. Shifting stock takes a fraction of the time it used to and he can shift five mobs inside an hour. When putting down fences the couple didn’t try to retain every small pocket of productive land. “Whilst it would be nice to only fence out wet areas and eroded banks, the cost of the fencing increases with every extra angle installed, to fence in a minimal area of grass.” The Taylor’s son, a local fencing contractor, adds minimising angles not only saves on materials and labour: stock flow better.

Rural News // november 20, 2012

management 33

Computer software to boost profitability SUE E D M O N DS

SHEEP AND beef farms with multiple stock classes on often very variable country are inherently complex businesses. Getting the best from them to increase profitability takes complex analysis and planning. A growing number of farmers are turning to computer software for help. “With the current volatility in prices for farm inputs and outputs, the ability to plan, monitor, forecast and review all of these is becoming ever more necessary to remain profitable,” Farmax’s Steven Howarth told a recent training course at Ruakura. The Hamilton-based firm’s Farmax Pro programme prompts users on the variables they need to input and runs the complex calculations for them. All they need is to learn how to use it to improve both productivity and profitability, says Howarth. During the day long course participants were taken through inputting data on grass covers, growth rates and supplements, and how to relate

these to stock classes and age groups. The programme uses a series of tables and graphs, and breaks the farm system down into livestock, land and feed components. The components are entered in an annual plan, created at the start of the farming year, which

It’s designed as a whole farm model, though particularly complex or large farms may set up certain blocks, or stock classes, as separate enterprises within the farm if they wish. Farmax is collating data entered so users can analyse trends for up to the

past ten years. A major feature of the Pro version is the ability to create scenarios to test strategies and compare profit estimates. During the Ruakura course participants worked through scenarios covering grazing bull beef, sheep mating and

layer of responsibility.” Last December he had 200 dairy heifers arrive as weaners, and another 80 came as rising one-yearolds on June 1. They’re being grazed in mobs of no more than 50 and will all go by May. It’s a system Taylor likes, even though it’s taking some getting used to, particularly feed demand in summer. “We were carrying too many sheep when we took the weaners on and we’ve come out with less feed than what we had in previous years. We haven’t got the mechanics quite right yet,” he admits. One drawback is the rigidity of a contract and Taylor’s had to feed extra supplement to meet his

both Islands. For smaller farms the annual cost is around $1100, rising to $2000 for those over 5000 stock units. For that you get training, a help desk service, the software, any upgrades, and an annual report of about fifteen pages on the year’s operations benchmarked

against similar farms. A free 30-day trial of the software, with training, is offered. Training days such as the Ruakura one are advertised by Beef + Lamb New Zealand (see www.beeflambnz.com, click on events) but registration with Farmax is needed to attend.

Farmax’s Steven Howarth.

sets targets for everything. Howarth suggests farmers get a consultant to help them build the plan. Once it’s done, it’s ‘locked’ for the year, so ‘actual’ and ‘plan’ performance can be continually compared. The ‘actual’ performance is created as a separate file, and any screen entry can be ‘popped out’ and shown on screens relating to other aspects of the operation, allowing for wider analysis without having to flick back and forth.

Grazers fit better from page 32

scanning, ewe and lamb sales, and using excess spring grass to make and sell baleage. Additional labour and machinery costs incurred were built in. The system is based on monthly inputs, and Farmax provides updates of stock schedules for

commitments. “Our next door neighbour runs finishing beef and he came through winter quite well because he was able to get animals off the property. We had to feed bale after bale of baleage to make sure stock reached target weights.” In winter does once or twice a day shifts on a grazing round of 40 days, and every second day in autumn. Shifting stock is made easier by extensive fencing on the property, including streams and wetlands. “It’s a real time saver to be able to go into a paddock to get all the stock and know that you don’t need to go looking in drains or wetlands for animals.”

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Rural News // november 20, 2012

34 animal health

Better drench use message ga re th g i llatt

POTENTIAL PRODUCTION is still being lost and the future viability of farms risked by not using drenches effectively, says Coopers technical advisor Hannah Field. Field is touring New Zealand with the animal health company as part of the ‘Partners in Productivity’ roadshow, a series of interactive field days being held throughout November. The tour kicked off in Whangarei last week, and moves down both islands this week and next. (Venue details: back cover, Rural News, Nov 6). Among the productivity messages presented by partners on the tour – Gallagher, Stihl, Silver Fern Farms, Farm IQ, Skellerup, Honda, MSD Animal Heatlth, and Federated Farmers – host Coopers is calling for better drench use. Common issues include farmers not physically weighing animals before dosing them, not calibrating or pressure checking drenching gear, not using the correct drenches and not testing stock

to see whether or not drenches are working after treatment. Field says it could be costing farmers a 20% drop in production at the very least. At worst, the parasite population on a property could become fully drench resistant. Field warns even stock that look fit and healthy can have a problem. “More often than not these days (parasite symptoms) are sub clinical so the animal looks fine but it just doesn’t grow like it should and that represents a loss in potential production.” The issue is even one that dairy farmers need to consider, she adds, as dairy calves can have growth rates severely limited by too heavy a worm burden which leads to reproduction issues later in life. “Animals that haven’t hit the right condition by mating are less likely to get into calf or cycle later… They are also more likely to be culled out of the herd earlier on.” There are bigger issues around drench resistance on farm. Field

simple drench test

On tour: Coopers’ Martin Cooper and Hannah Field at last week’s roadshow.

ples from around New Zealand, has found that resistance to drenches has been rising dramatically across the board – not just from levels a decade ago, but as recently as the season before last, 2010-2011. The lab found that 79% of farms from FECRT submissions around the country were resistant to benzimidazole. Resistance to combination drenches is on the rise too with 25% of all submissions showing resistance to benzimid-

Field says to test if the drench you’re using is working take a faecal egg count from 10 animals before treatment of a mob, then drench every animal in the mob. After 10-14 days take samples from 10 of the treated animals and repeat the faecal egg count. If the samples come back showing the animals still have a worm burden, review the drenching method and the drench itself.

points out Gribbles Veterinary Laboratories, the largest veterinary pathology organisation in Australasia and handler of a significant proportion of faecal egg count reduction test sam-

azole/levamisole drenches. “That’s really alarming because that’s the long-term viability of your farm…. Once your worm population has full drench resistance your options are limited.” Drench resistance is an ‘invisible’ problem according to Field because it can be developing right under a farmer’s feet without them knowing about it. She recommends faecal egg count reduction tests every 3-4 years, and drench checks are done at least twice a year, in spring and autumn at the very minimum. “Drench tests are so easy the farmers can do them by themselves.”

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Rural News // november 20, 2012

Breed for feet study finds alan harman

DAIRY FARMERS can increase efficiency, reduce carbon footprints and improve health of herds if they consider foot warts and other hoof ailments in breeding plans, researchers at the University of California Davis say. Increased herd longevity, better milk yield, and reduced inputs and environmental impact are other benefits, they say. “Most dairy breeding programmes select for milk production but the results of this study indicate that the cow’s conformation, particularly in terms of hoof health, also should be considered,” says Prof. Anita Oberbauer, lead author of the study published in the Journal of Dairy Science. Oberbauer says lameness and hoof health are also animal welfare issues that can cause dairy producers to cull, or retire,

cows early from their milking herds. As of 2011 at least 40% of California’s dairy cows were culled annually, and lameness was a top three reason for culling. The 29-month study, conducted on three farms, correlated milk production with weekly observations of hoof health for more than 5,000 cows, including the visibly lame and dry cows. Recorded lamenessrelated hoof conditions included white line disease, sole ulcer, other claw horn lesions, foot rot and foot warts. Foot warts were the most prevalent ailment, affecting over 17% of cows. The research demonstrated a sizable genetic component to sole ulcer and foot warts, indicating breeding for reduced hoof disease will likely lead to measurable improvements. The authors add that a breeding programme con-

sidering hoof-health traits would be unlikely to jeopardise milk productivity. Oberbauer says more research now is needed to identify the specific genes or DNA regions that

animal health 35

are responsible for hoofhealth traits.

Healthy hooves: US research suggests there is no downside.

Ear implants issue in Australia CONTRARY TO media reports, the Egyptian government has confirmed that cattle exported from Australia with ear implant growth promotants will only have ears removed after slaughter, not before, says Australia’s Department of Agriculture, Fisheries and Forestry. DAFF says safety of hormonal growth promotants (HGPs) registered in Australia for use in cattle has been rigorously assessed. The Joint Food and Agriculture Organisation (FAO)/World Health Organisation (WHO) Expert Committee on Food additives has also undertaken independent scientific assessments which support the safety of these HGPs. The HGPs used in Australia are formulated for slow release and use inert material such as silicone rubber. No active drug remains after the slow release, says DAFF. Depending on the particular HGP implant formulation, the release period ranges from 100 to 400 days.

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Rural News // november 20, 2012

36 animal health

Better brain disease diagnosis F RASER H IL L Gribbles Veterinary Pathology

In the lab: Fraser Hill preps some samples for examination.

CIRCLING, STAR gazing, rolling their eyes, trembling, lying prone: teenage adoration of the latest rock star? No, it’s a sheep

showing signs of brain disease. Infections, toxins, vitamin deficiencies, trace element deficiencies, inherited diseases and tumours can affect single animals or 5-10%

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of a flock. Some of these diseases are seasonal, age, feed, and weather related. Most are not contagious, almost all are preventable, but invariably fatal if not anticipated or treated. In most cases the first sign on farm is one or more sheep exhibiting unusual behaviour: falling, apparent blindness, trembling, staggering, circling, fitting, and unusual postures. Some blood disorders, such as milk fever and grass staggers, also cause these signs but usually occur in many animals and are generally correctable by appropriate treatment. This spring there have been some dramatic cases of milk fever (low blood calcium). In one case, a mob of 1500, inlamb mixed-age Romney ewes were mustered from the hill country, yarded, drenched and vaccinated before being released onto flat well-grassed paddocks in preparation for lambing. Next morning, 500 ewes were found recumbent. Some responded to treatment, arose and walked away, but as they did others went down. Over the next few days, further treatments were required but 100 ewes died. It’s a reminder milk fever can be induced in late pregnancy, which is why it’s important to minimise time off pasture. Back to brain diseases, vaccination of pregnant ewes and attention to lambing and docking hygiene can prevent certain brain and spinal cord infections. If a newly docked tail or wet navel is contaminated, bacte-

ria can enter the body and cause spinal or brain abscesses or tetanus. As the lambs age, toxins produced by the bacteria causing pulpy kidney can seriously damage the blood vessels of the brain, resulting in rapid death. Usually only a few animals in a mob are affected, but this indicates the remainder are in danger and preventative measures should be taken, either by vaccination of the pregnant ewe, or later on, the weaned lamb. Copper deficiency in pregnant ewes affects developing nerves in lambs’ spinal cords and brains. When born lambs are unable to walk properly and “sway back”. The lambs cannot be treated but copper therapy for the ewe flock can protect the following year’s lamb drop. Another symptom of copper deficiency in lambs is easily broken bones. If older lambs or hoggets have sway back symptoms and copper concentrations are normal, consider inherited diseases. A number of inherited diseases present with these symptoms but examination of the spinal cord is needed for confirmation. Once disease is confirmed, control relies on culling stock carrying the defective gene(s). Brain tissue death can be due to lack of thiamine, which may be due to thiamine breakdown by rumen bacteria or excess sulphur compounds in

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feed. Thiamine deficiency can affect many animals but can be treated if spotted before serious brain damage occurs. Infection of the mouth by Listeria bacteria can cause “circling disease”. The bacteria eventually climb the facial nerves and cause a small abscess in one side of the brain. The cause is usually oral damage due to rough feed and Listeria entering the wound. One sheep or a small percentage may be affected but the disease is invariably fatal. Once it was thought to be a disease of ewes eating silage, but in recent years cases have been seen in hoggets on pasture only, so watch out for circling in any age of sheep. Ryegrass staggers is another brain disorder, in this case due to excessive ingestion of fungal infected cultivars leading to damage to nerves in the balance centre of the brain. Single sheep showing symptoms of brain disease may be exhibiting one of the rarer causes such as a brain tumour. Confirmation will only come from brain removal and examination. With all these diseases, the key to a satisfactory outcome is diagnosis. If you notice symptoms, contact your veterinarian to examine animals, post-mortem if necessary. Sending brain and tissue samples away to a veterinary pathologist should enable a rapid diagnosis, allowing you and your veterinarian to prepare for treatment and control.

Rural News // november 20, 2012

animal health 37

Vet med ‘roadblock’ remedied a nd rew swa llow andrews@ruralnews.co.nz

information sheet available to help importers and manufacturers understand and use the group standards. Agcarm chief executive says the move, which follows three years of lobbying, “sends the clear message that if industry can make a sound case for

ANIMAL HEALTH companies say a streamlining of veterinary medicine approvals will reduce cost and remove a roadblock which has curtailed access to some medicines. The Environmental Protection Authority announced the move November 1, issuing four new group standards covering formulated medicines and active ingredients used in the manufacture of veterinary medicines and agrichemicals. The standards were developed following Graham Peters Agcarm and ARRPA the removal of red tape, calls for a more efficient the government will listen system of approval. Preand act.” viously, veterinary mediPeters says problems cines required individual first flared 10 years approvals from the EPA. ago when veterinary Now, importers and manmedicines were captured ufacturers can assign under the then new products or substances to the new standards, provid- Hazardous Substances ing they meet the require- and New Organisms Act, which manages risks for ments. hazardous substances “This new suite of such as industrial group standards is an chemicals, fuel, and example of reducing explosives. By contrast, unnecessary complihuman medicines ance costs to industry,” says EPA general manager were exempt from the environmental safety law applications and assessbecause they were seen as ment, Sarah Gardner. low risk, were regulated “We regard the development of these standards elsewhere, and HSNO added unnecessary cost as a win for industry and for little gain. a win for New Zealand as Being captured by it will allow the EPA to HSNO meant veterinary concentrate its work on higher-risk hazardous sub- medicines had to be regulated by EPA, even though stances.” they were already reguGardner says veterinary medicines are highly- lated by the Ministry for Primary Industries. controlled and present a Such double-headed comparatively low risk to regulation not only added individuals and the environment. Nonetheless the cost, it also meant that small amounts of product new standards include that contained low conconditions and restriccentrations of mildly haztions to manage what risks are posed by the sub- ardous substances were required to carry unnecesstances throughout their sary label warnings in New lifecycle. Zealand, says Peters. For example, the “Animal medicines restrictions detail how a are produced for a worldsubstance may be used, what information must be wide market, but New Zealand is only one per cent supplied with a substance of that market. The probor on the label, and how a lem was that label warnsubstance must be packings were not required aged, stored, handled and in other countries so had transported. to be added to New ZeaThe new standards land labels. On small prodcome into effect November 29. EPA says by the end uct lines, and even some larger ones, this was not of the year it will have an

“Animal medicines are produced for a worldwide market, but New Zealand is only one per cent of that market. The problem was that label warnings were not required in other countries so had to be added to New Zealand labels.” economically viable or possible, so the medicines were not available here.”

Also, some warnings were statements of the obvious and clogged up

tiny labels. “For example, a product that was designed to

target organs was required to carry a warning that it could affect organs – a meaningless statement. “Others carried warnings that the product was flammable when the cardboard box surrounding them was more of a fire risk.” The group standard

enables low-risk substances in packs under 500g or 500ml to be managed to minimise adverse effects. It also allows manufacturers to ‘self-assess’ products, removing the need to apply – and pay - for regulatory approval from the EPA.

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Rural News // november 20, 2012

38 animal health

Welfare group scores Aussie egg win A L A N H ARMA N

A CAMPAIGN to end the sale of eggs from caged hens has the Australian poultry industry on the defensive and calling the move misguided.

Welfare group Animals Australia (AA) has renewed its campaign and two major supermarket chains, Coles and Woolworth, say they will stop selling own-brand caged eggs.

AA says it wants the country to follow the European Union which has banned the battery cage but Australian Egg Corp (AECL) managing director James Kellaway says banning eggs

from one egg production system is misguided. “The decision should be a consumer’s – based on their personal choice and budget… Families shouldn’t be manipulated by activists such as Ani-

mals Australia and retailers such as Coles.” Of the three egg farming systems, caged, barn and free range, Kellaway says caged eggs account for 55% of Australia’s retail market – demonstrating

I’M STICKING WITH WHAT GIVES ME THE MOST SECURITY

Supermarkets stopped caged egg sales and moves to relax free-range standards have been stymied.

ELE-00563-RN

that it’s what customers desire. “Each of the three main egg farming systems has welfare strengths and weaknesses. For example, hens in cages are likely to live longer, be more healthy and are safe from weather and predators.” Kellaway says the industry fully supports greater welfare outcomes for all laying hens but believes science should lead the way, not emotion or self interest. Recent research by the University of Sydney’s Faculty of Veterinary Science found that caged hens are no more stressed than free range or barn hens, he points out. “We should be listening to science rather than emotion when making

To get better lamb numbers, focus on the factors you can easily control – the diseases that can cause major losses like toxoplasma, campylobacter, and salmonella. Vaccination helps you to both protect your ewes and increase the number of lambs born. A sheep performance vaccine plan for your farm will ensure you get the most benefit and most peace of mind.

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decisions about ensuring Australians have access to affordable and nutritious eggs,” Kellaway says. “We have invested more than A$10 million over 10 years in research and development into better welfare for hens and this investment will continue.” Kellaway says if cage egg farming was banned and all eggs were produced in lower density free range systems egg prices “would go through the roof for a product that is now a little bundle of affordable nutrition for all Australians. “Not everybody can afford free range eggs and we wish to continue to provide choice for a highly varied market,” he says. On average, Australians eat 214 eggs a year.

Free range change blocked The Australian Competition and Consumers Commission rejected an application by AECL for a certification trade mark that would label eggs “free range” when hens are kept at a density upto 13 times the industry’s current standard. The ACCC says it believes AECL’s proposal could mislead consumers about the nature of eggs described as free range. Australia’s current egg industry code limits free-range egg producers to 1500 hens/ha. AECL wanted to raise that to 20,000 hens/ ha. ACCC received over 1700 submissions from consumers, egg producers, industry associations and consumer and animal welfare organisations over the proposal. It said only a very small proportion of freerange birds actually venture outside onto the range at any one time and noted beak trimming is routine. “The ACCC considers that these practices and standards do not accord with consumer expectations about the free range production of eggs,” it said.

Rural News // november 20, 2012

animal health 39

SECURE YOUR LAMB NUMBERS. SECURE YOUR GAINS.

How to plan for a successful season.

EVEry farmEr kNows ThEy haVE To VacciNaTE agaiNsT Toxo. Johne’s: it’s not just a deer disease.

BuT arE you surE you kNow why?

Expert group formed to fight Johne’s AN EXPERT working group is the latest move to fight debilitating livestock disease Johne’s, and the causative bacteria, mycobacterium avium paratuberculosis (MAP). The move was agreed to by delegates at a cross industry and science organisation, the Johne’s Disease Research Consortium (JRDC) at a science forum in Wellington earlier this month. “It was a very positive day,” JRDC director Mandy Bell, of DEEResearch, told Rural News. “We had all the science people, pan-sector, in the one room. It was extremely well attended.” The day included updates on JRDC’s on-farm study programme in dairy, sheep and deer, the international science on the disease, and the role of breeding and genetic tests in its control. The final session resolved to establish an expert working group. Bell says the group’s aim is to pull together scientific knowledge on the disease, including from overseas, and “translate” that to what it means for New Zealand’s livestock industries. “It will pull out the key messages and management control tools and dis-

More about Johne's

tribute those to each industry [sector] to fine-tune the management opportunities.” That will include managing the risk of the disease, as well THE JRDC’s 2012 annual report (see as the disease itself should www.jrdc.co.nz) summarises the it arise. body’s findings and achievements “The problem is a since it was formed in 2008, including lot of the science is still publications of control guidelines by unknown but what we Dairy NZ and Beef+Lamb NZ in their need to do now is maxirespective sectors. Follow links from mise on what we do know the JRDC website. Johnes Manageand ensure there’s maximent Limited is the go-to organisation mum uptake on-farm of the for information on control in deer: www. tools and knowledge we curjohnes.co.nz or tel. 0800 456453 rently have, while recognising this is an ongoing process and research will continue to be needed.” they are worthwhile as vets and Farms need to know whether MAP producers can work to control the is circulating in their herds or flocks, disease taking into account the senand/or the wider local environment. sitivity of the tests, says Bell. Armed with that knowledge, they Wildlife vectors are also a factor should then drill down to deal with but their impact is minimal compared individual animals. to an infected deer or cow in the herd. “The end point is to minimise the “Look to limit the transmission of MAP to other animals. You shedding of the bacteria and how that need to identify the animals that are is passed to other animals within the herd and within the environment…. infected.” Diagnostic tests are available and The critical thing to understand is producers should be aware that sub- that every farm is different and this clinical carriers of the disease can is a multi-factorial disease.” shed massive amounts of MAP. @rural_news While the tests “are not 100%” facebook.com/ruralnews

Claw height link to lameness HOW LEVEL are the claws on your cows? A study of 2695 pasture-based cows on three Canterbury dairy farms found a lower incidence of lameness in cows with lower height differentials between claws on hind feet. The study, published in the latest edition of the New Zealand Veterinary Journal, found 14.5% of cows went

lame at some point between November and drying off. The predominant problem was white line disease, accounting for 78.6% of all cases. Trimming claws to remove height differentials didn’t reduce overall incidence of lameness but did lengthen the time to cows first going lame. Breed was identified as a signif-

icant risk factor, Jersey and Jersey/ Friesian-cross cows having less lameness than Friesians, and there was a lower incidence of lameness in younger cows. However, previous studies have found heifer cow lameness to be highly variable between farms, with some recording a higher incidence, the authors note.

Toxovax helps protect breeding ewes against the ill effects of Toxoplasmosis. Toxovax is given to maiden ewes at least 4 weeks before mating, and because it’s a live vaccine that must be used within 10 days of manufacture - it’s made to order for your farm. Ask your vet for more information.

PLAN fOR SUCCESS:

ORdER YOUR tOxOvAx® NOw!  order from your vet at least 8 weeks before you intend to introduce the ram.  one shot gives lifetime immunity.  up to 8% higher lambing percentages (3% national average).

Avoid Abortion storms And losses with one-dose lifetime protection.

ELE-00544-rN

andrews@ruralnews.co.nz

Toxoplasma occurs everywhere in New Zealand. Because of its hidden nature, farmers may not be aware it exists on their farm. Ewe hoggets and two-tooths are at most risk, and if they contract Toxoplasmosis during pregnancy, they are at risk of aborting or giving birth to weak nonviable lambs.

AvAILABLE ONLY UNdER vEtERINARY AUthORISAtION. ®registered trademark. msD animal health. Phone 0800 800 543. sPV-415-2012

a nd rew swa llow

Vaccinating for toxo is one of those ‘must-do’s’ on the farm – and there is a very good reason why.

Rural News // november 20, 2012

2012 External Parasite Treatment Survey – Sheep SATURATION DIPPING METHODS Product

Company

Active ingredient

Concentration

Dilution Rate Constant Replenishment Shower

Part Per Million in Active Ingredient Wash

Withholding Period

MEAT SERAPHOS 1250

Bayer NZ Ltd

Propetamphos

MAGGO

Bayer NZ Ltd

SWAT LIQUID

WOOL

Claims

COMMENTS – asterisk (*) indicates not for treatment of existing strike

LICE

KEDS

FLY

ITCH MITE

TICK

14 days

Yes

Mid term fly protection.

Propetamphos, 16g/L Paradichloro400g/L benzene

1:40

14 days

Yes

For treatment of flystrike in sheep and protection against restrike and as a docking medication.

Bayer NZ Ltd

Cyromazine

500g/L

2:10001 1:10002

1000 500

7 Days

Yes*

1. For longer term protection against flystrike. 2. For medium term protection against flystrike. Swat Liquid should not be used to treat active flystrike.

ZAPP JETTING LIQUID

Bayer NZ Ltd

Triflumuron

480g/L

1:1000L

480

42 days

Yes

Yes*

Specialised jetting formulation. Long term control of flystrike and lice.

ZENITH® CONCENTRATE

COOPERS

Diflubenzuron

250g/L

1.5L/1000 2.5L/1000

375 625

Nil

Yes

–

Yes*

1.5L/1000L for shower/plunge dips, 2.5L/1000L for jetting controls both fly and lice. Non-stripping formulation. Waterbased.

EXTINOSAD® LIQUID

Elanco

Spinosad

25g/L

1:1250

20ppm spinosad

Nil

CYREX ™

Elanco

Cyromazine plus Spinosad

500g/L cyromazine and 12.5/L spinosad

1:500

1000ppm cyromazine and 25ppm spinosad

7 days

CYRAZIN LIQUID

Merial Ancare

Cyromazine

500g/L

2:10001 1:10002

1000 500

7 Days

FLEECEMASTER

Merial Ancare

Diflubenzuron

250g/L

1.5/1000l 2.5/1000l

375 625

Nil

XTERMINATE 10

Merial Ancare

Chlorpyrifos

100g/L

1-320 1-800

312-fly 125 - lice

21 days

CYRAZIN KO

Merial Ancare

Cyromazine/ Ivermectin

500g/L 15g/L

1:500

VETRAZIN LIQUID

Novartis

Cyromazine

500g/L

2:10001 1:10002

1000 500

7 days

FLYSAFE LIQUID

Ravensdown

Cyromazine

500g/L

2:10001 1:10002

1000 500

7 Days

RECOMMENDED: • FINE WOOL 180 DAYS • MID MICRON 90 DAYS • STRONG WOOL 60 DAYS

1:1250

360g/L

Yes

Fast knockdown lice control with no meat or wool withholding. 20 week lice control guarantee on coarse wool breeds. Short term flystrike prevention and treatment.

Yes

New combination dip for long term flystrike protection plus fast knockdown of maggots and lice. Treats active flystrike.

Yes*

1. For long term protection against flystrike. 2. For medium term protection against flystrike. Cyrazin will not treat active strike.

Yes

–

Yes*

1. For dipping and jetting of all adult sheep and for medium term fly protection in lambs. 2. 2.5/1000 For long term fly protection in lambs. 3. Fleecemaster is an insect growth regulator therefore: (i) lice control is achieved only when adult lice die naturally which may take 8 weeks or more (ii) Fleecemaster should not be used to treat active flystrike.

Yes

Reduces the number of cattle ticks on sheep.

Yes

Long term Fly Control

Yes*

1. For long term protection against flystrike. 2. For medium term protection against fly strike. Vetrazin should not be used to treat active flystrike.

Yes*

1. For long term protection against flystrike. 2. For medium term protection against flystrike. Flysafe Liquid should not be used to treat active flystrike.

NOTE: The Rural News External Parasite Treatments Guide for Sheep is compiled from information supplied by animal health companies. Although the information has been checked by our independent animal health advisor, Rural News accepts no responsibility or liability for inaccuracies. Asterisk (*) indicates not for treatment of existing strike. NOTE: – = Not supplied. N/A= Not allowed. A = Not allowed on animals producing milk for humans

Cyrazin

with New Zealand’s leading flystrike active. Cyrazin Spray-On and Liquid, for the prevention of flystrike in lambs and sheep. l

Contains cyromazine, New Zealand’s leading flystrike active.

Excellent efficacy against all problem strike flies.

No known resistance to cyromazine in NZ.

Provides medium-term protection.

Does not strip from the dip.

Available as spray-on or liquid concentrate. Proudly available from your local veterinary clinic. Merial is a Sanofi company. Merial New Zealand Ltd, Level 3, Merial Building, Osterley Way, Manukau, Auckland. CYRAZIN® is a Registered Trademark of Merial NZ Ltd. Registered pursuant to the ACvM Act 1997 No A9415. ©Copyright 2012, Merial Ltd. NZ-12-CYR-159.

Cyrazin 14x7 Ad-2012.indd 1

15/11/12 10:31 AM

Rural News // november 20, 2012

POUR-ON OR SPRAY-ON METHODS - 2012 Active Ingredient

Concentration

Formulated Dose Rate

Bayer NZ Ltd

Spray-on

Cyromazine

60g/L

See label

21 days

35 days

ZAPP ENCORE

Bayer NZ Ltd

Pour-on

Triflumuron, Imidacloprid

25g/L 30g/L

See label

56 days

35 days

Machine shorn off shears and lambs up to 6 months – lice only

Flystrike and lice control off shears up to 6 months

Yes

Double combination pour on for knockdown and long term control of flystrike and lice. Can be applied to wet sheep. Easy to apply, fast spreading formulation.

ZAPP POUR-ON

Bayer NZ Ltd

Pour-on

Triflumuron

25g/L

See label

49 days

35 days

Machine shorn off shears and lambs up to 6 months – lice only

Flystrike and lice control off shears up to 6 months

Yes

Yes*

Can be applied to wet sheep. Easy to apply, fast spreading formulation.

MAGNUM® COOPERS

Pour-on

Diflubenzuron

25g/L

Refer to label

Nil

35 days

10x

Fly: Any length Lice: Off-shears

Fly: Any length. Lice: Up to 3 months

Yes1

Yes*

Magnum® is water-based and rainfast. 1 Recommended off-shears treatment for lice.

VANQUISH® COOPERS

Pour-on

Alpha 50g/L Cypermethrin

Refer to label

7 days

35 days

Lice: Up to 10 months

Yes

Yes*1

Yes*2

Rainfast. 1 Vanquish is recommended off-shears but can be used as an emergency long-wool lice treatment. 2 Up to 6 weeks protection against flystrike.

WIPE-OUT® COOPERS

Pour-on

Deltamethrin

10g/L

Refer to label

3 days

35 days

Lice: Up to 3 months

Lice: Up to 6 months

Yes

Yes1

Yes

Rainfast. 1 Recommed off-shears treatment for lice.

EXPO

Elanco

Spray-on

Spinosad

20g/L

See label

Nil

>25x

Off-shears

up to 3 months

Yes

New lice pour-on for sheep with no meat or wool witholding. Rainfast.

EPIC EZY

Jurox NZ Ltd

Pour-on

Triflumuron

25g/L

See label

63 days

35 days

Up to 6 Adult sheep off shears. Lambs up months to 6 months.

Yes

Rainfast: 20mm of rain within half an hour either before or after treatment does not reduce efficacy. Epic Ezy is a suspoemulsion which spreads rapidly on the animal, even in wet conditions and contains a blue scourable dye to identify treated sheep.

CYPERCARE

Merial Ancare

Backline Pour-on

Cypermethrin

25g/L

1m/5kg LW 2ml/5kg LW

14 days

35 days

10x

Off shears

Up to 3 mths 3-6 mths

Yes

Yes Yes*

Yes

*Lice on goats. Contains scourable marker Pour-on 2ml/5kg LW 3-6mths wool.

EXIT

Merial Ancare

Pour-on

Triflumuron

25g/L

Refer to label

49 days

35 days

Off shears2

Off shears or with up to 6 mths wool1

Yes2

Yes1*

1. Fly: up to 3 mths following. Shearing lice - up to 6 mths wool growth. 2. Fine wool lice only - off shears.

EXIT EXTREME

Merial Ancare

Pour-on

Cypermethrin 30g/L Triflumuron 25g/L

Refer to label

49 days

35 days

Off shears2

Off shears or with up to 6 mths wool1

Yes2

Yes1

1. Fly: up to 3 mths following. Shearing lice - up to 6 mths wool growth. 2. Fine wool lice only - off shears.

FLYPEL

Merial Ancare

Spray-on

Cypermethrin 100g/L Chlorpyrifos 10gL

Refer to label

14 days

35 days

10x

Any length-fly, off shear lice

Any lengthfly, off shear lice

Yes

Blowfly treatment - apply directly to affected area. Sheep blowfly suppressant and off shear louse.

CYRAZIN SPRAY-ON

Merial Ancare

Spray-on

Cyromazine

60g/L

Read label for dose rate

14 days

35 days

4-12 weeks

Yes*

Apply with a coarse spray nozzle. Cyrazin Spray-on will not treat active flystrike. Do not use on sheep producing milk for human consumption.

CLIK

Novartis

Spray-on

Dicyclanil

50g/L

Read label for 1. 2 dose rate

35 days

310x

Any length wool

Yes

1. Meat WHP - Merino 56 days. All other breeds 35 days. 2. Do not use on sheep producing milk for human consumption.

CLIKZIN

Novartis

Low volume spray-on

Dicyclanil

12.5g/L

Refer to label

7 days

35 days

>10x

Any wool length, including lambs at docking

Yes

CLIPGUARD

Novartis

Pour-on

Triflumuran

25.0g/L

Refer to label

49 days

35 days

Machine shorn off shears and lambs up to 3 mths wool – lice only

Flystrike and No louse control off shears up to 6 months

Yes

VETRAZIN SPRAY-ON FLYSAFE SPRAY-ON FLEECEGUARD

Novartis

Spray-on

Cyromazine

60g/L

Read label for 7 days dose rates

35 days

N/A

Up to 5 mths wool

Up to 3 mths No wool

Yes*

A water-based spray-on which will give protection against flystrike.

Ravensdown

Spray-on

Cyromazine

60g/L

Refer to label

7 days

35 days

N/A

4 to 12 weeks

Yes

Apply with a coarse spray nozzle. Flysafe Spray-On will not treat active flystrike.

Ravensdown

Pour-on

Diflubenzuron 20g/L Deltamethrin 10g/L

Refer to label

63 days

35 days

Of-shears and up to 6 weeks wool growth

Yes

Double combination pour on for knockdown and long term control of lice. Easy to apply with a stanard applicator and T-bar nozzle.

SAFETY MARGIN

MILK

Treatment Times

FINE WOOL

COARSE WOOL

4-12 weeks Off-shears

REGISTERED FOR GOATS

Method of Application

SWAT SPRAY-ON

Product

Company

Comments — Asterisk (*) indicates not for treatment of existing strike.

MEAT

Withholding Period

LICE

KEDS

FLY

Yes*

Apply with a coarse spray nozzle. Swat Spray-on will not treat active flystrike.

Claims

Excludes goats

Show Fly AND lice the Door!

EXIT® is a highly effective, easy-to-use IGR pour-on that controls fly and lice on sheep. l

Exit Pour-on for sheep contains triflumuron, an extremely effective insect growth regulator (iGR). iGRs provide longer acting control of lfy and lice, as well as being more user-friendly than traditional OP dips and SP pour-ons. Exit Pour-on, with its no-mix formulation means it is extremely easy to use anywhere on the farm for effective fly and lice control. proudly available from your local veteriNary cliNic Merial is a Sanofi company. Merial New Zealand, Level 3, Merial Building, Osterley Way, Auckland. EXIT® is a registered trademark of Merial Ltd. Registered pursuant to the AcvM Act 1997 No A9415. ©copyright 2012, Merial NZ Ltd.

Exit 14x7 Ad-new.indd 1

13/11/12 9:59 AM

Rural News // november 20, 2012

42 machinery & products

Farm crawler repowered and better shod FARMING’S ONLY tractor designed specifically for rubber tracks has emerged in a new series with two models, reports the maker, AGCO. Notable features of the new Challenger MT700D Series include a newly developed engine and polyurethane-surfaced mid-wheels in the track system. AGCO’s aim is “to further cut operating costs for progressive farmers and contractors with… the most advanced, economical engines and the industry-leading Mobil-Trac

system’s outstanding traction and low compaction.” The MT700D Series is powered by AGCO’s latest engines designed specifically for farming applications: 6-cylinder, 8.4L Sisu Power units with four valves/cylinder and common rail injection. On the ground, the Challenger’s Mobil-Trac system transmits “unrivalled levels of drawbar power with minimal slip,” AGCO says. “Wide, long tracks create superb traction, which results in more work in less time while protecting the soil.

“Durable polyurethane mid-wheels with bigger bearings, high capacity lubrication and sight gauges further extend working life. And strong new belt designs increase track life and durability, as do debris deflectors.” Notably, Agco started with a “clean sheet” in developing the engine for this Challenger: “power to meet tough challenges, torque delivery matched precisely to the fluctuating loads of demanding equipment, fuel economy, low weight and quiet operation.”

The ‘poly’ mid-wheels are said to last longer in harsh environments

because of their high resistance to chipping and damage. And new bearings

have larger bearing cups that hold more oil. New, clear sight gauges simplify checking of the levels. Robust debris deflectors keep soil and stones away from the undercarriage and keep the belts clean. The tracks themselves are new, AGCO reports. These come in specifications ‘general ag’ (with an extra inside rubber layer), and ‘extreme ag’ and ‘extreme application’ (both with two extra

inside layers). The ‘general ag’ and ‘extreme application’ tracks also now have a larger diameter main cable. AGCO says it has 25 years track design behind it. A slight change to the transmission has involved recalibrating the hydraulic valves that change the gears and this improves comfort and control while shifting, the maker says. Tel. 027 270 8027 peter.scott@agcocorp. com www.agco.com.au

Rural News // november 20, 2012

machinery & products 43

Both hands on the wheel while bales keep loading AUTOMATIC BALE loading on Kuhn’s RW 1600 C round-bale wrapper allows the tractor driver to keep his hands on the wheel – no buttons to press – while the machine sees to bale loading. The trailed turntable wrapper has the maker’s integrated Autoload function as standard to increase operating efficiencies when handling bales of 1200mm x 10001500mm (W x D) and up to 1200kg. New electronics package, in combination with the Autoload, are said to put the RW 1600 C among the fastest singlestretcher turntable wrappers on the market. Autoload automatically picks up a bale with the loading arm and puts it on the wrapping table without any action by the driver; he simply keeps driving – no intervention to load the bale. Picking up a second bale with the loading arm during wrapping is also possible; the bale will be picked up and held half-

way to the wrapping position. When the wrapping process is ready the waiting bale automatically loads further on to the wrapping table. Kuhn says strong design and low table height, and standard large wheels at the rear of the machine, avoid the need for an active fall damper. This removes one step in the normal process and allows the bale to be unloaded on the move, thereby increasing the overall capacity significantly. With the bale weight towards the tractor, slippage and grip problems are averted on slopes, the company says. New electronics are said to improve functionality, ergonomics, safety and capacity. The machine is controlled with an easyto-operate and automatic computer with integrated joystick. The process can be interrupted and started at any time with a play/ pause function. Full control of the process pre-

vents operator mistakes that can lead to machine breakages. The RW 1600 C has Kuhn’s 750mm aluminium pre-stretchers with cone-shaped outer ends, automatic film cutter and storage for up to six spare film rolls.

Once you try the best spec’d machine available on the market you won’t want anything else • • • •

Powerful 26Hp diesel engine Easy to operate HST Transmission 4WD with Rear Diff Lock 3-point Linkage with PTO

TRACTOR ONLY

• • • •

LOADER COMBOS

35 & 45Hp Daedong Diesel Engines 8x8 Manual Transmissions 4WD, Rear Diff Lock & Power Steering Heavy Duty Korean Build Quality

FROM

jobevalves.com/vortex

Power Farming Northland Te Hana Tractors Gatmans Mowers & More The Tractor Centre Maber Motors Agrilife Power Farming Te Awamutu Maber Motors Capital Tractors & Machinery

*Normal lending criteria and conditions apply.

• • • •

100Hp Perkins Diesel Engine 16x16 Wet Clutch Transmissions 4WD, Rear Diff Lock & Power Steering High spec’d air conditioned cabin

$59,990

PRICE INCLUDES FEL 09 438 9163 09 423 8558 09 426 5612 09 238 7179 07 889 5059 07 847 2195 07 870 2411 07 882 1310 07 543 0021

1.95%

WHAKATANE ROTORUA SOUTH WAIKATO GISBORNE HASTINGS HAWERA FEILDING MASTERTON NELSON

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07 308 7299 07 349 6528 07 882 1310 06 868 8908 06 879 9998 06 278 0240 06 323 8182 06 370 8240 03 544 5723

+GST

• High Flow • Compact & Robust • Other Vortex Models available

$49,990

PRICE INCLUDES FEL WHANGAREI WELLSFORD SILVERDALE PUKEKOHE MORRINSVILLE HAMILTON TE AWAMUTU PUTARURU TAURANGA

DX100C LOADER COMBO

LOADER COMBO

90Hp Perkins Diesel Engine 12x12 Shuttle Transmissions 4WD, Rear Diff Lock & Power Steering Flat Operator Platform

+GST

Need a BIG Tank Valve?

$22,990

+GST

Check out our free classifieds listings at www.ruralnewsgroup.co.nz/classifieds

DK901 • • • •

$19,990

+GST

DS SERIES

$17,990

TRACTOR, LOADER & DECK

+GST

$15,990

OPTIONAL EXTRAS: • Self Levelling Front End Loader • 60” Side Discharge Mower Deck

TRACTOR & LOADER

+GST

Tel. 0800 233 645 www.adfmilking.com

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

ALL NEW CS2610 SUBCOMPACT

S I appointment ADF MILKING has appointed Nigel Wilson to the new position of South Island sales manager. Wilson has spent most of his life working in farming related roles, mostly in Canterbury. He comes with a strong dairy farming background, having spent some years managing a dairy farm milking at least 1000 cows. ADF general manager Toby Green says the company’s milking systems have been widely adopted in the South Island during the two years since they were launched. “Farmers have been quick to pick up this new technology and it is proving invaluable in reducing mastitis and subsequently increasing milk output. “Combating mastitis is a major pain and… I’m excited about ADF Milking’s automatic dipping and flushing system; it does what it says, and healthy cows equal healthy profits.” The ADF system automatically dips the cows’ teats before the cups come off and flushes the liners out before they go onto the next cow.

The operator can easily and quickly adjust the number of film layers applied to each bale. The film is pre-stretched by a standard setting of 70% to maximise film coverage and reduce usage.

PRICE INCLUDES FEL

BLENHEIM WEST COAST CHRISTCHURCH ASHBURTON TIMARU ALEXANDRA DUNEDIN GORE INVERCARGILL

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Rural News // november 20, 2012

44 machinery & products

Farming no longer a real pain and pains. The company says it was the first to develop a lambswool cover for its magnetic underlays. The natural therapeutic qualities of a high-grade wool, coupled with its softness and warmth, made a logical partner for magnets. “When combined in a product of Magne-Sleep’s quality they promote deeper, more refreshing sleep along with improved blood circulation that helps minimise aches and pains.” One theory said to be advanced about magnets is that they can help soften blood vessels, allowing better blood flow especially during resting, helping muscles stay flexible. “Every day we hear stories from our users, telling us how their Magne-Sleep has helped them,” says Mary Launder. “One of the most common stories comes from people who bought a Magne-Sleep – often a bit unsure of what it’s all about – and didn’t feel they were getting anything out of it. Then they go away for a few days and suddenly realise [they’re missing] the benefits Magne-Sleep has been giving them.” Tel. 0800 766 737 www.painfreeday.co.nz

Making hay while the sun shines Drilling and silage contractors were out in force in Southland and West Otago, earlier this month, making the most of a break in the weather following a very wet October in the region. Pictured is Hokonui Contracting Limited drilling a paddock of winter feed by SH93 (The Old Coach Road), at Otaraia, Southland. – PHOTO ANDREW SWALLOW

Krone Comprima High Density Balers SIZE MATTERS

e weed

er -

JFM

e ge n

s in

198

A LIFELONG farmer, when asked why he’d stayed so long on the farm, replied “I’m just too damn tired to go anywhere else.” Best he had tried a Magne-Sleep magnetic underlay, says the New Zealand maker of this product. The farming daily grind that results in poor sleep, a crook back, and muscles that moan with every movement can be alleviated with a good sleep, says Magne-Sleep director Mary Launder. “We’ve worked with magnets for a long time and we’ve seen how, when they’re used properly, they can help people get significant pain relief and new enjoyment in every part of their life.” Launder says there are generally two responses to Magne-Sleep: the scoffers who “don’t believe in that sort of bull….” and who go on plodding through their dreary days; and those who give it a go and get a surprise. Magne-Sleep magnetic underlays have been around at least 15 years, the company says. They were the first magnetic underlays to be made in New Zealand, always emphasising being better at effective magnetic therapy to help reduce aches

Get a Solid Bale in the size you want! Nationwide Distributors Call FREE for more info;

0800 88 55 624

www.tulloch.co.nz

Rural News // november 20, 2012

machinery & products 45

One-stop-shop for all Krone baling needs GARE T H GILLAT T

OPERATORS with Krone balers and baler-wrappers can now get wrap, netting and twine specially designed for these machines, reports local Krone distributor Tulloch Farm Machines. Principal John Tulloch told Rural News the company will this season import “limited quantities” of the Krone Excellent products for customers using the Krone baler range. This is their first time on sale here through Tulloch. Krone balers are designed to compact the maximum possible feed into the smallest possible volume, and now owners can have the benefit of custom-designed consumables, Tulloch says.

“High-density square balers have been pushing the limits of twine. So it’s very important you get a good quality twine that has a consistent finish.” The Krone twine has tested strength of 245280kg and has consistent texture that ensures reliable knotting. The Excellent edge net and Excellent side bale wrap are proving hot sellers, Tulloch says, requiring three re-orders to keep pace with demand. Each sheet contains five layers of blown plastic that determines flexibility, durability and stickiness. Says Tulloch, “A couple of first customers who were using the wrap said they were very happy with the performance; it runs through the machines

SHEEP CONVEYORS • Unique lead up race helps loading by 15% • Power draw 3-5 amps • No belt slippage • Resistant to pour on’s and other dosages • Fully sealed bearings and electrical system • Full length foot stop/start bar on each side • Variable speed and variable width adjustment to handle ewes, lambs etc

124 Lincoln Road, Masterton Email: daytech@wise.net.nz

Leaders in farm machinery design

ROUND BALEAGE TIPPER Transports and stands wrapped round bales on end for storage

John Tulloch

without any issues.” The same goes for netting, he says. This is made to be reverse wound to prevent unravelling. The

round edge for hay bales and Excellent edge for silage bales.

material will withstand exposure to UV for up to a year. It comes in 26003600mm lengths and is available in Excellent

GARE T H GILLAT T

disc instead of several says Keegan. “You just stop, replace the disc, attach four bolts and then you can

go again. The potential for savings is incredible.” The driveguard is the latest in a

IT’S QUICK, IT’S CONVENIENT, IT’S EFFICIENT H NOW AVAILABLE AS A SINGLE OR DUAL UNIT H

Tel. 0800 88 55 62 www.tulloch.co.nz

line of safety measures by the company. Disc mowers using cascade gearing, after hitting an obstacle usually needed a major repair job, Keegan says. MF has fitted a breakable PTO bar to stop lasting damage to gears; they have also used a modular design for extra protection. The driveguard is fitted to all mower-conditioner models from 2m to 8.9m wide and is also available in kits for owners of previous seasons Massey Ferguson professional series. www.masseyferguson.com.au

• Thick layers of plastic on bale ends provide superior protection against ground moisture and weather while stored. • No flat sided bales (simplifies feeding out). • Less storage area required. • Suitable for medium HP tractors. • 3PL mounted (no front axle stress). • Bale tipped in one easy movement. • No need to reposition bale before tipping. • Simply trip and flip.

Maitland - RD5 - Gore Phone/Fax 03-207 1837 or 027-628 5695 www.james-engineering.co.nz

arcusin.co.nz

European excellence

C-14

NEW

C-14

For fast, effective bale handling Collects and packs conventional bales into packs of 8, 10, 12 or 14 bales (hay, straw and haylage) before releasing them as one combined bale. The new C-14 has an improved bale pickup system. Eliminate the high costs of man handling bales but retain their benefits and versatility.

Run out model multi pack B-14 one only

$125,000 +gst

16 ALBERT ST, CAMBRIDGE YOUR ARCUSIN NZ REP

OUR NOVEMBER ONLY END OF YEAR SPECIAL Sheep Conveyor & lead up is $16,900 + GST Trailer Mounted is $21,O00 + GST

Phone Stuart 0274 387 528 or workshop on 06 370 1329

Drive guards squeeze downtime ROCKS, stumps and other obstacles should pose few problems to the new Massey Ferguson mowerconditioner professional range, according to Agco’s Greg Keegan. New disc-mounted driveguard plates, which have four predetermined break points, are mounted between the disc and the rest of the mower ensuring that when a disc hits a large obstacle only that disc stops working. This prevents any further damage to the mower and means the operator only has to fix one

Check out our free classifieds listings at www.ruralnewsgroup.co.nz/classifieds

Greig Singer 027 266 7897,

arcusin@gaz.co.nz

Also available

Auto-Stack Bale Loader

Rural News // november 20, 2012

46 machinery & products

Sharper, tighter on twisting back-roads www.electro-tek.co.nz

PRODUCTION ORIENTATED FARMERS... Are you suffering from:

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

Pugged paddocks can reduce pasture growth up to 60% DON’T PUT GOOD FERTILISER ON COMPACTED SOIL WHICH CAN’T ABSORB IT If your soil can’t support 15cm root growth and good worm population check for compaction. You could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover?

AERATORS

HEAVY DUTY AUTO RESET

THE NEW Kia Sorento R is more sophisticated and starts at a lower price than the outgoing model, says Kia Motors. Sharper and more aerodynamic styling to the 2013 Sorento R includes LED daytime running lights, part of a new headlamp cluster that angles in towards the more aggressive tiger nose grille and new front bumper, which contains vertical-axis fog lights. There’s also a new tailgate with LED rear combination lamps, new rear bumper and an expanded range of wheels that include larger diameter (19-inch) alloys. Built on a new platform, major upgrades include a stronger, yet lighter re-engineered bodyshell, enhanced powertrain for improved fuel economy with lower emissions and revised suspension for a smoother ride, sharper handling and greater refinement. “The changes have turned what was an extremely good vehicle into an extraordinary one,” says Todd McDonald, general manager of Kia Motors New Zealand. “The best way to appreciate the new Sorento R is

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to take it for a long drive on twisting back-country roads – the ride, handling and road-holding have been transformed. It’s engaging and entertaining in a very sophisticated way.” The 2013 Sorento R range includes 2.4L petrol and 2.2L diesel in urban and AWD in various specification levels all with three rows of seating for seven occupants and pricing starting from $46,490 + ORC, a reduction of $500, in spite of higher equipment levels and an all-new chassis. Kia is also introducing a new top-of-the range model to head the line-up – the Sorento R Premium, which comes with a full luxury package, including a two-part panoramic sunroof and powered blind that runs almost the length of the roof, ventilated front seats and new adaptive headlights that automatically point in the same direction as the vehicle resulting in improved driver visibility at night. For the first time in a Kia, there is also the new ‘smart park assist’ function that automatically parallel parks the vehicle, hands free (on Limited

The new generation Kia Sorento R – more refined and sophisticated.

and Premium only). The most important feature of the latest Sorento R is the all-new platform, which has increased torsional rigidity in the body by 18%, using more high tensile steel than most vehicles in this class. Key changes to the suspension system, including brand new subframes, larger bushes, high performance dampers and the introduction of a motor driven power steering system (MDPS) with stronger mountings, have led to a more sophis-

ticated and balanced mix of ride, handling and road holding. The ride height has also been lowered 10mm to further improve on-road handling. Although the handling bias has shifted towards on-road motoring, the latest model is still a capable off-road performer when fitted with Kia’s full-time all-wheeldrive system that distributes drive to wheels with more traction when it senses slippage. The front and rear axles can also be locked 50:50 to

enhance traction up to 30km/h. Approach angle is 19.7-degrees, departure angle 22.4-degrees and ramp-over angle is 17.1-degrees. The new platform delivers another bonus: more legroom for the second and third row passengers – up 30mm and 9mm respectively, due to a reshaped floor. Second and third row seats can be folded to provide 2052L of cargo carrying capacity. Passengers will also notice a quieter cabin.

Rural News // november 20, 2012

rural trader 47 Rubber Safety Matting

❤

 

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

COUNTRY & CITY

contacts (N.Z. LIMITED)

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

DEAL TO FLY AND LICE

For Information Pack, contact... Country & City Contacts 0800 287 437 or

  

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

email: sales@pppindustries.co.nz

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SCARTT TT

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globalstainless@clear.net.nz

BEST VALUED UTV IN NZ

Phone 07 573 8512 • www.electrodip.com

Be Safer With Duals

• $45.00 delivery cost in New Zealand

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

• Also high pressure s/steel water cylinders

BE SAFE... FIT A QUADBAR

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

The ultimate in paint protection

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

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www.clicdualwheels.co.nz

PER 10

14 Riverbank Rd, Otaki

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+GST delivered

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

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Clic Wheel Systems Ltd, Rotorua

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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

www.quadbar.co.nz

Phone

0800 625 826

for your nearest stockist

Joiners supplied FREE with culvert pipes

Bump up productivity and WIN! ChoiCe! WIN our ultimate draw in March and choose the ultimate prize for your farm Honda Big Red® MUV700

Buy COOPERS this summer and be in to win hardworking farm gear from Honda, Gallagher, STiHL and COOPERS. Every eligible purchase gives you multiple chances to win. So get started today – with over $75,000 worth of prizes, it’s going to be a bumper season.

ThiS oR ThiS

PLUS in all three draws between November and February you could win: a GALLAGHER Weigh Scale and Data Collector – TSi with 600mm Loadbars and SmartReader Electronic Tag Reader

a HONDA XR125 Duster® Farm Bike

a HONDA WB20 Water Pump

ELE-00529-RN

a STiHL MS391 Chainsaw with safety chaps

$3 from every drum sold goes to supporting the Federated Farmers Adverse Events Network.

GALLAGHER® Sheep Auto Drafter with TSi Weigh Scale and Electronic Tag Reader

1 of 30 COOPERS Drench Promo Packs

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• Participating products are ALLIANCE 5L & 10L, CONVERGE 5L and 10L, SCANDA Plain 10L, SCANDA Selenised 10L and 20L, MAGNUM 20L, BLAZE 5L, ZENITH Concentrate 5L and 10L, VANQUISH 10L and WIPE-OUT 11L. • Receive one entry per participating product purchased during promotion period. • COOPERS will donate $3 to Federated Farmers for every drum of participating product sold into COOPERS reseller during the promotion period.• Go to www.bumperseason.co.nz for full terms and conditions. • ®Registered trademarks. COOPERS is a divison of MSD Animal Health. BUMPER-349-2012.