Rural News 18 Dec 2012 by Rural News Group

horticulture The Psa rural assistance package is only a temporary solution. page 10

understanding porina Eradication of porina pests such as diamond back moth and bronze beetle set to become a reality. page 23

animal health Company denies claims of health risks for saleyard mixing of rearer calves.

Rural NEWS to all farmers, for all farmers

december 18, 2012: Issue 529

www.ruralnews.co.nz

Tough year ahead – MPI P E TE R BU R K E peterb@ruralnews.co.nz

THE GLOBAL economic crisis is expected to knock $1.7 billion off the value of New Zealand’s primary exports this season. MPI has revised downwards its earlier forecasts for primary exports, to $27.5 billion – 5% less than a year ago. The biggest hit, not unexpectedly, is on lamb exports, predicted to earn $1.91 billion, a drop of 17% on the previous year. MPI is forecasting that lamb prices for season will be about $4.88/kg, with an 18kg lamb this season fetching about $88 – $113 last season. This is due mainly to weaker consumer demand for lamb especially in the European Union. The value of beef exports will remain about the same as last year, aided mainly by the drought in the US. Dairy prices will be down by 8.1% to $12.6 billion, this figure only marginally below what MPI was forecasting in June. While kiwifruit prices will hold up this season, the outlook for next

page 25

season is bleak as the impacts of Psa are felt. Other horticultural exports are expected to do well this season. MPI also predicts forestry will continue to be squeezed in the coming years. What’s not new is that everyone was predicting 2013 to be a tough season, especially given that it was exceptionally good climatically and the markets were receptive to our products at good prices. What is new is that MPI has revised downwards its June predictions by 3% in just six months, something it says creates some ‘short term challenges’ for the primary sector.

don't tell rudolph But it’s velvet and antler competition time in New Zealand, with national and many regional competitions completed in recent weeks. Here, Peter Shearer (centre) shows off the head his employers Kathy and Donald Hudson entered in the South Canterbury and North Otago competition. For a report from the national competition, held last week in Invercargill, turn to p5

Chris Jones, MPI’s manager of economic information and analysis, says the main factors are the global economic situation, a New Zealand dollar expected to remain strong for the next two years and the spread of Psa. On the plus side, Jones says the drought in the US offers opportunities for beef and the growth in developing markets in Asia looks good in the medium-to-long term. “While the IMF has downgraded Chinese growth, it’s still forecasting growth in that country of 7-8%, admirable growth by anyone’s estimation.

“While many commodity prices have taken a hit since we did our forecast in June, dairy prices have risen strongly, horticulture has held up well and meat and dairy volumes have been high,” he says. A major problem on the horizon is the impact of Psa on kiwifruit exports. Jones says exports of gold kiwifruit may halve in 2013/14. There could be as few as ten million trays exported in those years compared with the 24 million trays exported in 2012/13. @rural_news facebook.com/ruralnews

H20 all go for 2013 PRIMARY INDUSTRY Minister David Carter says the biggest threat and challenge to agriculture in 2013 is water and the Government has spent a lot of time talking about it. The Horizons One Plan decision has been an “eye opener for the Cabinet” in view of the Government’s drive to deliver economic growth, Carter says, and it would be a problem if the work on irrigation infrastructure and the ‘acceleration fund’ was gazumped by “unrealistic regional plans being developed anywhere in New Zealand”. “I think the big challenge, having received three reports from LAWF, is to come up with a policy package that shows we are serious about managing this resource in an environmentally sustainable way. “I would summarize this past year, 2012, as the year in which this government has firmly established in the minds of New Zealanders that there has to be a strong economic growth agenda, and we’ve done this well.” Central government must take control of this and make sure there is “substantial guidance to regional councils as to what they have to do”. Carter is disappointed at how the sheep meat industry is positioning itself for the immediate season. He says that given the two biggest meat companies lost collectively about $90 million in shareholder equity, he’s surprised that there hasn’t been more demand for action and accountability.

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Rural News // december 18, 2012

news 3 issue 529

www.ruralnews.co.nz

News �� 1-14 World �� 15 Agribusiness �� 16-17 Markets �� 18-19 Hound, Edna �� 20 Contacts �� 21 Opinion �� 20-21 Management �� 22-23 Animal Health �� 24-26 Machinery and Products ��27-29 motoring �� 30 Rural Trader �� 30-31

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Milk of Fonterra’s kindness FONTERRA IS still looking for Government and other support for its national Milk for Schools programme. The co-op is launching the national scheme on its own, but says it would welcome co-sponsorship. 350,000 primary school children throughout New Zealand will be offered a free serving of milk every school day from next year, as part of the scheme. Fonterra group general manager global cooperative social responsibility, Carly Robinson, says it is open to talks with the Government and others. She says some “in-kind partners” are helping with logistics. However, the co-op is the sole funder of the scheme and is prepared to spend “a substantial amount” on its own.

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

PETER BU RKE

THE MINISTER for Primary Industry David Carter believes India has as much potential as China – or more. He recently led a small agricultural trade mission there, and to Sri Lanka and Indonesia. “The reason I say India has this potential is that its middle class is more ‘identifiable’ than the middle class of China. There is a lot of history of Commonwealth and other relationships with us, and their knowledge of English means that in some respects it’s easier to deal with India.” But critical to expanding trade with India is a free trade agreement (FTA) such as we have with China. The Carter

delegation met India’s Minister of Commerce who had assured he would push “enthusiastically” for continuation of FTA discussions. But though Carter is hopeful of an FTA, there are political issues and an underlying desire to restrict trade through tariffs. “We went to a supermarket that has half a million customers a week, which is big. They had a typical fresh produce area in which 27% of the sales was apples. Indians are massive apple eaters; the guy in the supermarket said the best apples in the world were from New Zealand. “Currently India has a 60% tariff on New Zealand apples and a 150% tariff on our wine. That’s why we have to strongly push our case for an FTA.”

we are proud this programme will give every primary school kid the chance to enjoy this nutritious product. “New Zealand is the largest exporter of dairy products in the world, but at home we’re not drinking as much milk as we used to. We want to be the dairy

The delegation received a letter from the Indian government informing of a lifting of restrictions on sheep meat, making it easier to sell in India. Carter says despite the low percentage of sheepmeat eaters, the sheer size of the market holds huge potential. Most sheepmeat sold to India goes to hotels and restaurants. The trade mission opened doors for exporters and Carter is pleased with the results. One New Zealand nursery signed a deal to sell rootstock to an Indian company. Indonesia holds much trade potential because of its huge population and its proximity to New Zealand, likewise Sri Lanka. @rural_news

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TAF units continue to shine Sudesh Kissu n

THE PRICE of units in Fonterra Shareholders Fund is hovering 20-25% higher than its float price. Last week the units were trading at $6.60-$6.81 each. They launched at $5.50. Broker Grant Williamson, Hamilton Hindin Greene, says the units are trading in a limited range. He expects things to change when Fonterra announces its financial results or forecast earnings. “I don’t think things will change much until the market hears from Fonterra,”

he told Rural News. Launched on November 30, TAF (trading among farmers) offers economic rights in the co-op shares through the Fonterra Shareholders Fund. In a recent email to farmer shareholders, Fonterra chairman Henry van der Heyden and chief executive Theo Spierings told farmers to expect more volatility in unit prices. “Don’t be surprised to see more of this price movement over the coming weeks while the shares and units establish their value,” they said.

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Fonterra’s Theo Spierings and kids enjoying a glass of milk.

Awakening the Indian tiger

Published by: Rural News Group Printed by: PMP Print

“One area of support we need from the Government is the level of health impact over time from the Milk for Schools programme,” Robinson told Rural News. After a successful trial in Northland schools this year, the national scheme was launched last week at Hillpark Primary School in South Auckland by chief executive Theo Spierings and All Blacks captain and Fonterra ambassador Riche McCaw. Associate Health Minister Peter Dunne was also present. Spierings says Fonterra is committed to Milk for Schools because it will make a lasting difference to the health of New Zealand’s children. “We want Kiwis to grow up drinking milk because it’s good for them and

That’s what works out here.

Farmers were also told they don’t need to trade shares immediately. “All farmers are already compliant with the share standard for the current 2012-13 season,” the email says. However, they cautioned farmers to be wary of media commentary on TAF and the FSF unit price. “Expect a lot of media interest and commentary on the price, but don’t get sidetracked by it. We’re certainly not going to get distracted. TAF was about removing redemption risk and giving farmers some more flexibility.”

nutrition capital of the world and this starts with our kids.” Research by the University of Auckland has shown that children’s milk consumption in the Northland community, at school and at home, has significantly increased since the pilot began.

Last minute rush for wool deal FAXES AND e-mails were “running hot” late last week as the 5pm Friday deadline for the Wools of New Zealand capital raising loomed. “It’s too early to call,” WONZ director Mark Shadbolt told Rural News on Thursday lunchtime. “We haven’t exceeded the $5 million at this stage but we are determined to start and we’re encouraged by the level of support.” That support has come from Federated Farmers, Beef + Lamb, Romney breeder Wairere, and others, but not, as Rural News went to press, the country’s biggest farmer, state owned enterprise Landcorp. “We would like them on board, as we would every other wool producer in the country,” said Shadbolt. The prospectus minimum of $5m means the initiative can’t go ahead unless that figure is raised. Shadbolt says if there’s a modest shortfall, an extension of the offer “would certainly be considered.” “Like I said, we’re determined to start, and we can only do that with growers’ support.” Attendance at meetings to promote the prospectus ranged from two to 57. Shadbolt said they expected to be able to announce the level of capital raised early this week. – Andrew Swallow

Rural News // December 18, 2012

4 news UK biofuels influence NZ wheats A ND REW SWA LLOW andrews@ruralnews.co.nz

EXPECT TO see more soft feed wheats from European, notably UK, breeding programmes, growers at PGW’s agronomy group field day last week heard. Europe is normally a regular exporter of wheat, but three massive biofuel plants have created an extra 2mt of demand for wheat, preferably high starch soft milling types that maximise ethanol yield, Limagrain’s UK director of sales and New Zealand coordinator, Alastair

Potato problem WHEAT WASN’T the only crop to suffer in the UK’s soggy summer, Moore said: national potato yield is forecast back from 6mt to 4.5mt, and 25% of that is still stuck in sodden paddocks. “And they don’t know how what’s out of the ground is going to store either.”

Moore, explained. “We’re seeing quite a drive to the soft wheat end and a lot of the new varieties recommended [in the UK] were in that category.” The booming biofuel demand and an appalling harvest have tipped the UK to be a net importer of wheat for the first time in decades. Prices ex-farm have spiked to £230/t (NZ$450/t) spot, or £235/t for February movement as a result. “And that’s just for feed. You’ve got milling premiums being paid on top of that,” he told the PGW field day. However, milling quality wheat is hard to come by and specific weights, even for feed are a problem. “A lot of wheat is 65-68kg/hl. Some is down to 53kg/hl.” The rest of the European Union and exporters further east such as Ukraine don’t have a lot of supply either, he says. As for next year’s crop, only 50% of the UK’s anticipated winter (ie autumn sown) wheat area has been sown and of that, about 30% probably won’t make it because of the wet autumn.

Top-up payments ease dairy farm cash flows SUDESH K I SSUN sudeshk@ruralnews.co.nz

Alistair Moore

“It’s an interesting scenario and probably one none of us have seen in the past.” UK plantings are normally nearly all autumn-sown so spring seed looks like being in short supply. Limagrain is importing from the likes of Denmark and Poland to meet the shortfall. “A lot of these countries have a bigger spring programme.” Whether there might be an opportunity for New Zealand to meet some of the demand, Moore didn’t say. @rural_news facebook.com/ruralnews

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FONTERRA FARMERS will receive a top-up payment next month, helping defuse their tight cashflows. The co-op has lifted its advance rate payment by 40c/kgMS. Fonterra shareholders council chairman Ian Brown says some farmers will use the extra money, to be paid on January 20, to clear bank overdrafts. Dairy farmers incur most operating costs during the first half of the season on fertiliser and breeding, says Brown. “These are costs farmers cannot avoid no matter what. Cashflows have been tight and the lift in advance rate will go some way in helping ease the situation,” he told Rural News. Fonterra farmers are paid on the 20th of every month for the previous month’s supply. The new advance rate of $4.25/ kgMS is for December milk and applies retrospectively to milk supplied so far this season. Brown says the aver-

age farm starts supplying milk on August 1, after the end of calving and has almost 60% of its season’s supply in by the end of December. A farmer supplying 100,000kgMS per season will have almost 60,000kgMS picked up by the co-op by December 31. An extra 40c/kgMS means $24,000 more in his bank account on January 20 next year. Fonterra chairman Henry van der Heyden says after considering farmer shareholders’ cashflow requirements, and the strength of the cooperative’s balance sheet after the launch of TAF (trading among farmers), the board had decided to lift advance rate payments to farmer shareholders. “The immediate effect of this decision is that our farmers will have more money flowing into their bank accounts from late January when they are paid for the previous month, and that will help them with their cashflows,” he says. The co-op also lifted the 2012-13 payout by 25c. The milk price for the season now is $5.50/kgMS,

up from $5.25 in the previous forecast. The net profit-after-tax range is 40-50c/share. Van der Heyden says between August 1 and the most recent Global Dairy Trade (GDT) trading event, prices have increased by an average 17.7%. “While there was a drop at the recent GDT event, it has not changed our overall commodity price forecasts,” he says. Farmers were expecting the lift in payout, says Brown. “While farmers are not over the moon… the lift in payout is a morale booster.” Federated Farmers is urging farmers to maintain austere budgets and prioritise spending. Feds dairy section chairman Willy Leferink warns there could be economic shocks such as that brewing in the US – the ‘fiscal cliff’. “We also need to be mindful that without wide-scale water storage, the Kiwi economy is acutely vulnerable to the vagaries of rainfall in some of our key farming areas. There are pockets of dry now appearing.”

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Rural News // december 18, 2012

news 5 World-class hard antler winner’s massive score A ND REW SWA LLOW andrews@ruralnews.co.nz

IN A paddock near Feilding there’s a world champion in the making. He’s called Davidson, a son of Harley – and we’re not talking motorbikes. Davidson’s an eight-year-old stag and last week his hard antler as a sevenyear-old landed the champion title in the trophy antler section of the Deer Farmers’ Association’s national competition, Invercargill. The head scored a massive 735 points on the Safari Club International scoring system, which in such competitions excludes the inside span and coronet

measurements as heads have to be on the animal for those to be measured. Had those figures been added – the breeders, the Loveridges, took the measurements while the head was still attached – he’d have scored 790. “That’s over 120 points over the current world [trophy stag] record,” competition convenor Peter Allan told Rural News. To be eligible for an SCI trophy record, the stag must be shot with the head attached. If he’d met that fate “he’d have blown the world record [of 669] out of the water,” said Allan. Davidson was just one of a trio of potentially world beating heads entered in the hard antler section: Odysseus,

Winning antler

from Deer Genetics, landed 657 competition points, and the late Amadeus, from Foveran, 605. “The red hard antler entry quality was just incredible.” Numbers of hard antler entries were back slightly but in the velvet section they were on par with recent years and

with higher average weights yet again. “The graph is still going up, and quite steeply. You’d have thought by now it would be starting to plateau,” notes Allan. That said, weight isn’t the only factor and the heaviest head doesn’t necessarily win: imperfections and suitability for processing are factored into the scoring system which this year saw sixyear-old Zama, winner of the open red velvet class, named champion. Reserve champion was elk supreme section winner, six-year-old Mojo. “It was very close with a split vote.” Zama’s head entered by Brock Deer and Geoff and Lynette Elder, Gore, and

weighed in with an 11.28kg head, while Mojo belongs to Tommy May, Mayfield Elk. Allan says there’s a positive mood among velvet producers. “It’s one of the few commodities that’s selling quite well at present. We’re up 10-15% on last year and probably looking at similar volumes.” That’s despite a cold spring which reduced early weights cut. “But later weights have been good. In the past week it’s been 18-20 degrees C. Velvet grows at 2cm a day at those temperatures. You can almost see it growing.” @rural_news

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THE SPECTRE of weeds resistant to mainstay herbicide glyphosate has been confirmed in New Zealand. While the find is an isolated case on a Marlborough vineyard, it is a warning to all users of glyphosate, widely known by the brand RoundUp, that they need to be aware of the danger of resistance developing, says FAR chief executive Nick Pyke. “On-farm the impacts would include reduced income, due to increased chemical costs and reduced crop yields,” says FAR chief executive Nick Pyke. “Removing glyphosate from the suite of available chemicals would also increase the resistance pressure on other herbicides.” The resistant weed – annual ryegrass -- was identified as a possible problem by a chemical company in autumn 2011 and confirmed as resistant after seeds were collected, grown out, and the plants treated with various rates of glyphosate as part of the MPI-funded Avoiding Glyphosate Resistance project.

Rural News // December 18, 2012

6 news

TPP negotiator confident of outcome for agriculture New Zealand’s chief negotiator David Walker (left) fronts the final press conference following the 15th round of Trans Pacific Partnership talks in Auckland last week, with chief negotiators from 11 countries.

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A CHIEF negotiator at the Trans Pacific Partner-

ship (TPP) in Auckland said he’s confident Australia and New Zealand will achieve their objective of

eliminations of tariffs on primary produce. At a press conference to conclude the 15th

round of TPP talks, Australian chief negotiator Hamish McCormick was questioned on the call by farmers’ bodies in New Zealand and Australia for elimination of tariffs and both governments’ stated position that nothing less would be acceptable. “We are all working with a great deal of vigour trying to achieve that outcome,” he replied. “We are confident we will complete negotiations and get the level of ambition that has been set by leaders. With some of these issues it’s not easy to get there but we are confident we can and will get there.” His was perhaps the most direct answer amidst diplomatic speak with little given away as chief negotiators for the 11 countries in the TPP talks fronted for the press conference. As the host nation, New Zealand’s chief negotiator David Walker led the conference. He said a lot of work had been done in this round on “technical areas of negotiation” clearing pathways for more “sensitive” issues such as intellectual property and environment to be resolved. On the issue of market access, the key concern for New Zealand’s agricultural sector, Walker said discussions continued and it would be on the agenda for the 16th round to be held in Singapore from March 4-13. He said at least 500 negotiators from 11 countries had met at the 15th round in Auckland from December 3-12. A number of countries had said they wanted to see the agreement concluded in the coming year and “that set

the context through which negotiators approached their work”. The first of two main objectives was to ensure the smooth integration of newcomers Canada and Mexico into the negotiation. “We have achieved that in large part because both countries have come to Auckland well prepared to engage across the TPP negotiating group,” he said. The second was to set the platform which would allow the conclusion of a deal in 2013. This included technical issues such technical barriers to trade, communications, customs, sanitary and phytosanitary measures, and providing clear pathways for issues that remain unresolved. Walker said countries now had specific follow up work to do in preparation for the next round, and that included market access. In answer to a question to Canada’s chief negotiator Kirsten Hillman on whether Canada had tabled any offers on reducing tariffs on the dairy trade, she said she didn’t want to get into the details of what had been done so far. However she said it had been an excellent first round for Canada and they have been able to join the negotiations fairly seamlessly.A Japanese journalist said Japan was considering joining the TPP and asked questions on this process. Walker said a country would need to show how it could join the process without slowing the momentum. @rural_news facebook.com/ruralnews

Rural News // december 18, 2012

news 7

The moo-vers and shakers of 2012 It has been another big and busy year for the agribusiness sector. Since this is the last newspaper for the 2012, Rural News’ editorial team has done a quick review of the year and come up with its high and lowlights… Good Industry good leader of the year - Bruce Wills for restoring the credibility of Federated Farmers and giving them mainstream status after years of being in the wilderness and being seen a ragtag bunch of perpetual moaners. Organisation of the Year – Dairy Women’s Network for growing by 30% and adding 700 new members as well as holding its first Dairy Woman of the Year award. Toughest job of the year – NZ Kiwifruit Growers Inc. president Neil Trebilco for steady leadership as the industry news just kept getting worse, upbeat where possible, ‘realistic’ when necessary, which was most of the time. Agribusiness of the year – Miraka the new Maori dairy company in the central North Island.

Great vision, great leadership and an example of the ‘can do’ kiwi attitude. Fonterra – take note! Communicator of the year – Chris Kelly for always being available to the media and always talking common sense and showing great leadership during the Crafar farm sale. His retirement will be a loss to the primary sector. Consistently good PR – DairyNZ for its field days, Beef + Lamb NZ the same, and the office of Minister for Primary Industry David Carter. Lifetime contribution – Retiring Fonterra chair Sir Henry van der Heyden. His 20 years of service to dairy industry leadership is deserving of a knighthood and the odd bit of criticism.

However, some of the nasty claims in the past six months have been unedifying, unwarranted and unfair. Bad PR disaster of the year – Impossible to separate Fonterra for TAF and Horizons Regional Council for One Plan. They can both share the prize money and ignominy. Under the radar award for excellence – Maori farming in general. Making a valuable contribution to New Zealand and saying little about their success. Henry hecklers – The nameless, faceless group of Fonterra shareholders who have tried to gain support by putting the boot into outgoing chair Henry van der Heyden. Most press releases – Federated Farmers by a country mile or two or three. At times, one wonders what they on about, but at least the Feds are always willing to engage media even if they can be slightly OTT at times.

Ugly One Plan – Horizons Regional Council, Fish and Game, DOC and the Environment Court can all claim credit for a dreadful, unworkable regional plan that will go a long way to wrecking the economy of the Horizons region.

Amy Adams – As Minister for the Environment she is leading the charge on RMA reforms. Smart, decisive and maybe a PM in the making.

Damien O’Connor – Did his best in a party that is essentially more interested

in gay rights than the economy. Good man, wrong team! @rural_news facebook.com/ruralnews

Dr Mike Joy – For his regular pronouncements on the environment, which went far beyond saving native fish species and potentially tarnished New Zealand’s clean green image Psa – The nasty disease that continues to devastate kiwifruit crops and growers around the country and no real sign to an end of it yet. Politicians David Carter – Never afraid to speak his mind and ruffle feathers when required. Maybe has too much faith in MPI and will be a loss to the sector if made Speaker.

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Rural News // December 18, 2012

8 news GET SOCIAL WITH RURALNEWS

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Broadband buyout good for farmers pam tipa

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THE TELECOMS company that provides communications for Landcorp farms, TeamTalk Ltd, is buying out the Timaru-based operator of broadband provider Farmside. The 100% buy-out will mean access to faster, cheaper broadband for many farmers, Team Talk managing director David Ware says. The purchase of BayCity Communications, operators of Farmside, was due to be completed last Friday with an upfront purchase price of $31m, in cash and shares, with an earn-out based on company performance over the next two years. This could raise the total price paid to $42.05m. BayCity had revenue of $24.5m and an EBITDA of $5.8m in the year to June 2012. Ware says it’s an opportunity to grow both businesses. TeamTalk brings its wireless expertise and investment capital and Farmside brings its satellite business, ISP knowhow and a rural focus. “Farmside is a neat company, doing good stuff for the rural community,” Ware told Rural News. “What is has lacked is some financial firepower…. The trouble with the telecommunications business is you need a lot of capital to grow these businesses. The main thing I bring to the business is access to lots of money so they can grow and do more.” Ware says TeamTalk is already in the rural space. “We provide the communications into all the Landcorp farms. So we’ve got some technology above and beyond the stuff Farmside currently does – we will be

looking at expanding that and making farmers. “Hundreds if not thousands of that more available to farmers. So the bottom line is faster, more accessible farmers will have access to high and hopefully a little cheaper broad- speed, city-standard broadband over the next year or so. To set expectaband.” Ware says their systems can pretty tions, this won’t be everyone, everywhere, but it will be little much go anywhere. Team Talk is propockets here and viding internet to the 25 most there. remote schools in New Zea“Farmside land – those beyond the will also be mainstream Rural Broadable to grow band Initiative. Those will faster and be completed by February. do some On the back of those, more things TeamTalk can provide themselves.” “metropolitan-speed” broadband to farmers in those areas. It has already started doing that, just connecting about eight farms in a little area out the back of Napier. Ware says these farmers are getting higher-speed services than he gets in Thorndon in Wellington. But until now TeamTalk has not been geared up for dealing with individual farmers; Farmside is, so the combination of technologies will add another option TeamTalk managing director David Ware says the Farmside buyout will be good for farmer for broadband access in some areas some

Shipping rates will rise – Maersk peter burke peterb@ruralnews.co.nz

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THE HEAD of the Maersk Shipping line in New Zealand, Julian Bevis, says rates for shipping refrigerated containers to our export markets must rise because the present price structure is unsustainable. He accepts such a move won’t be popular, but says for the last five years reefer – or refrigerated cargo – rates have come down by up to 25% and this has to change. Bevis told Rural News the reefer market is simply not making enough money to allow it to reinvest in new infrastructure. It’s no secret no one in the container business has been making any money for the last few years, he says. “[Our return] on assets… has not been much more than 1% or 2% and for an ‘asset heavy’ business’ that’s not enough. We really need to be looking for about 10%.” Bevis says all the shipping lines

are looking to do is to get rates back to where they were some years ago. “It is no coincidence that no one at the moment is buying new refrigerated equipment. There are no current orders for new refrigerated containers anywhere in the world, which for New Zealand is a worry in the long run. It’s also interesting to note that in the conventional market, which carries a lot of cargo from New Zealand, no one is building any new [ships]. There is more scrapping going on out there rather than building and it’s all because it’s un-remunerative.” Bevis believes the shipping services provided by Maersk to New Zealand will probably remain much as they are for the foreseeable future. And he sees no likelihood the number of ports will change because there isn’t the land infrastructure to get cargo to and from catchment areas. But he forsees changes in container shipping arrangements. “I think the way the port situation

is going to evolve is that we will see an ‘A league’ and a ‘B league’, if you like, in the container area. The ‘A league’ in the North Island will be Auckland and Tauranga and in the South Island, Lyttleton and Port Chalmers. “Does that mean the demise forever of places such as Napier and Wellington as ports? I don’t think so, because we are not the only show in town.” Bevis has concerns about a review of the Commerce Act, which he says is talking about removing some exemptions for shipping that allow companies to work together operationally. “Quite apart from putting this country out of line with Australia, and all its major trading partners, it would impede our ability to operate in a way that gives us economies of scale.” Bevis says he’d also like to see higher productivity in New Zealand’s ports. @rural_news facebook.com/ruralnews

Rural News // december 18, 2012

news 9 One Plan seen as Manawatu’s biggest constraint P E TE R BU R K E peterb@ruralnews.co.nz

HORIZONS ONE Plan is the biggest potential constraint to the development of agriculture in Manawatu, according to a wide-ranging economic report on the subject. The 44-page report, just released, is the last in a series on key economic sectors commissioned by Palmerston North City and Manawatu District councils to highlight their importance to the local region. The report, prepared by Massey University economics student Carla Muller, highlights the importance of agriculture to the rural community and to Palmerston North. It says in 2011 agriculture directly contributed $268 million to the region and indirectly $80 million. The report estimates agriculture accounts for 25% of Manawatu district’s GDP and 1.5% of Palmerston North’s GDP. On average, every dairy herd in the region has a return (before tax) of $139,519; sheep and beef farms return, before tax, $213,841. But the report singles out One Plan as the biggest threat to farming in the region, saying it will have a potentially large impact on “farming practices and the farming landscape”. It goes on to say that it’s hard to quantify the exact impact until the court issues are resolved. Palmerston North mayor Jono Naylor

Palmerston North mayor Jono Naylor.

told Rural News is greatest concern about One Plan is the lack of resolution of the issues involved. With agriculture such a big part of the region’s economy it’s important concerns over viability and productivity are quickly resolved, he says. “I think agriculture is taken for granted by a lot of New Zealanders. I don’t think a lot of people realise that the lifestyle we live today in the cities is on the back of the work done on farms. It’s a huge part of our economy and the rest of us re-circulate the money [farmers] generate.” Naylor says the multiplier effect in Manawatu region from agriculture is big. “There is the direct impact from the farmers and the money they spend, which then generates jobs in the industries servicing the agricultural sector – education in agriculture, research institutions, and a lot of our manufacturing.”

RMA reforms to rev up councils developments, including housing subdivisions, industrial developments or infrastructure projects that collectively are worth hundreds of millions of dollars. It is also leaving communities with uncertainty and drawn-out battles for years on end, bringing with it significant costs.” Adams says the Bill introduces a six-month time limit on council processing of notified consents. She believes this will help give certainty to communities and developers by reducing the time for consents by about one third, from the current average of nine months. The bill has significant ramifications for regional councils who have been targeted by David Carter and Amy Adams for sloppy economic

PETER BURKE peterb@ruralnews.co.nz

THE LONG-AWAITED Resource Management Reform Bill was introduced into Parliament just days before the house rose for the year. The bill was introduced by Environment Minister Amy Adams and seeks to streamline some RMA processes and also put legislative grunt in place to force local authorities and regional councils to perform better. Adams says the costs, uncertainties and delays of the current resource management system are affecting New Zealand jobs, infrastructure and productivity, and they place an unfair burden on communities. “They are causing frustrations for those wanting to progress important

analysis of regional plans. “It recognises that decisions made at local and regional level can have far-reaching effects on local jobs and growth,” Adams says. “Under this bill, councils will be required to undertake more robust cost-benefit analysis under section 32 of the act, including considering how the

local economy and jobs will be affected, before making major decisions on policy and planning.” The bill is heading for a select committee next year.

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Court accepts MPI report THE ENVIRONMENT Court will consider the report commissioned by the Ministry for Primary Industry, prepared by Landcare, as part of the Land and Water Forum process. The report suggested among other things that the One Plan could cut some farmers and commercial growers’ incomes by as much as 43%. HortNZ applied to the court to have the report considered because they

said it contained new evidence about the economic impacts of the One Plan. Fish and Game opposed this and Horizons Regional Council did not support the move. The decision by the court to look at this ‘new’ evidence is seen as a victory for HortNZ and Feds who are appealing the One Plan to the High Court. This latest move will delay any decision on the One Plan by several months.

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10 news

Assistance will only help struggling growers out PA M TI PA pamelat@ruralnews.co.nz

THE RECENTLY announced Psa rural assistance package will put food on the table – but it will not save businesses, says NZ Kiwifruit Growers Inc president Neil Trebilco. There’s a lot of misunderstanding over the

extent of the Government financial package available now under ‘adverse event’ help announced earlier this month, he says. “I think one of the principle things about the adverse event declaration is that it’s official recognition by government of the seriousness of Psa and the impact it is having on the industry,” says Trebilco.

“But the financial measures are somewhat limited – and that’s what people don’t understand.” Orchardists and those outside the industry alike think it will keep growers in business. “Unfortunately it won’t,” he says. Trebilco believes many orchardists will want to access the Rural Assistance Payment (RAP) but

many won’t qualify under income and asset tests. For example the income test is $341.60 for a married couple with no children and $204.96 for a single person over 25 years. Assets that are part of the kiwifruit growing business will not be included in the assessment. However, Trebilco says any off-orchard assets will be

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taken into account including shares and any other outside income such as partner’s income. “The issue for growers is that might put food on the table for some but it won’t satisfy any issues they have in meeting mortgage payments.” Many growers won’t think it is enough assistance; some have overestimated the amount of help available. “If you have a lot of debt it won’t satisfy the need to meet interest payments on mortgages.” It will be paid to eligible growers for 12 months, but there are still issues to be worked through with government over when it will be declared in various

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ing their future right now. December was always going to be ‘D-day’ for some once they saw what pollination was like and where Psa was going. “Some growers are trying to decide right now whether they can stay in business or not.” • See “Mixed results” on page 12

Preparing for porina moth he explains. Oswald says mean daily peterb@ruralnews.co.nz temperature also plays a part in determining when FARMERS IN the central to start looking for porina North Island, especially caterpillars in the soil. around Taihape, are setFrom what they have disting up a network to moncovered this season, the itor the flights of porina peak flights seem to occur moths. in late February/ Taihape veterinarian Anthony “Farmers need to be on early March, which that by May Oswald, who’s been the alert, that’s why we means or June the caterpilfacilitating field days for Beef + Lamb NZ, are trying to get people lars should be at the best stage to start says until recently to monitor the porina digging to see how there wasn’t a problem with porina in moths – we will then let many are present. the area. But about people know when they This information is then used to decide three years ago the should start looking for whether to spray or Rangiwahia region not. Porina can be got severely affected the caterpillars. killed by spraying the and this season areas chemical diflubenzuron. in the Kawhatua valley and flights of the moths are But Bevis says it may be in Ohakune have seen sig- occurring. This is why necessary to use an extra he’s getting a network of nificant porina damage. one called diazinon when farmers in different parts Some of his clients are there are larger caterpilof the region to monibadly hit and fears persist lars present at spraying. tor porina moth numbers that porina could become using simple traps – made Spraying costs $23-$30/ha. more of a pest there. “Farmers need to be from an ice cream con“I’ve seen whole hillon the alert, that’s why we tainer, hung next to an sides bare because of porina. When high enough outside light, with water in are trying to get people to the bottom – and counting monitor the porina moths in numbers they can do – we will then let people the moths trapped every real damage. If you find know when they should few days. one to two porina per start looking for the cater“By keeping a running 200mm spade square, they pillars. If numbers are high tally on how many are eat the same amount of caught we can identify the enough they can spray grass as one ewe per hectbefore the caterpillars are peak flights of the moths are. and then a certain number big enough to eat a signifi“I have heard of farmcant amount of pasture.” of days from that peak ers who have found up to (See more on porina control, flight we start looking for 20 porina caterpillars per the caterpillars in the soil,” page 23) spade square so you can PE TER BU R K E

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areas. For instance Psa was first found in Te Puke in November 2010 and many growers are only now facing their first season with no income. Psa has only in recent months been discovered in areas such as Waikato, Northland and Hawkes Bay. Trebilco says some growers are consider-

imagine the effect they can have on a farmer’s stocking rate. It will impact winter carrying capacity and… farm profitability. Oswald says a key factor in limiting the damage by porina is to know when the peak

Rural News // december 18, 2012

news 11 Outgoing Fonterra chair working till the end OUTGOING FONTERRA chairman Henry van der Heyden will use the next five months as a director to help execute the co-op’s strategy refresh. Van der Heyden is defending his decision to stay on the board after relinquishing the chairmanship to John Wilson. He says the decision has been taken in the interest of the co-op. Some shareholders have questioned the decision. Van der Heyden says he has always done what is right for Fonterra. “We have pushed the button on TAF (trading among farmers) and have signed the prospectus. That’s the right thing to do from a governance perspective,” he told Rural News. “I’m here to support the board and Theo Spierings in the execution of

tralia and New Zealand and Auckland Airport. Last month, he was selected as the chairman of the year 2012 in the Top 200 Companies Awards. Gaining the award is humbling, he says. “Really, it’s recognition of the co-op at the end of the day.” Van der Heyden has served as a dairy company director since 1992 when he was first elected to the

New Zealand Dairy Group by 360 voters in the South Waikato ward. In 1997 he joined the New Zealand Dairy Board and became deputy chairman of NZ Dairy Group a year later. He became chairman of NZDG in 1999 and led the merger with Kiwi Co-op to form Fonterra. Van der Heyden replaced John Roadley as Fonterra chairman in

Don’t take foot off gas pedal OUTGOING FONTERRA chairman Henry van der Heyden is cautioning farmers against any strategy likely to slow the co-op’s growth. With a lower payout signalling tight farm cashflows, farmer anxiety is growing but van der Heyden says now is the time to be bold and increase the pace. “In five years I want to see Fonterra farmers the wealthiest farmers in the world,” he told Rural News. “We have to capitalise on opportunities.” The Putaruru farmer says with TAF

underway, the foundation is set for the co-op to take off. This is no time to rest or “sit down for a cup of tea”. “Farmers are tired and need a break, but we need to keep going. The new chief executive and chairman-elect have a strategy in place so farmers shouldn’t be thinking about taking a breather. “The strategy refresh is not about slowing down but making decisions faster. It’s all about maximising payout for farmers and higher profit for investors.”

2002. He recalls that in 1992 there were 18 dairy co-ops. Following mergers the number dropped to four. Some mergers were easy as that was the logical thing to do for neighbouring co-ops. The tough one was the merger of NZDG and Sidco, the South Island dairy co-op in 1998. At the same time the Government was talking about deregulating the dairy industry, he says. “Back in those days if you ever talked about being anti the single-seller concept you could not walk out of a hall of farmers alive. That was the absolute bible. We actually front-footed the Government move on deregulation. We decided to take control of it and industry leaders and farmers were always prepared to frontfoot things.” On van der Heyden’s

Henry van der Heyden

watch Fonterra has taken several bold steps: Global Dairy Trade (GDT), TAF (trading among farmers), free trade agreements, co-op governance model, developing business relationships with other major global dairy players and appointing a new chief executive and chairman.

He admits there were bumps but farmers supported him and the co-op all the way. TAF took longer than necessary to finalise and there was farmer opposition. “There were turbulent waters around TAF but no one can say TAF has not been successful.”

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the strategy refresh.” Van der Heyden says he’s not affected by criticism from some parts of the shareholder base. It is part of the cooperative way – farmers thrashing out issues but uniting behind the final decision. And he intends pursuing governance roles elsewhere, as chairman of Tainui Group, and as a director of Rabobank Aus-

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Rural News // December 18, 2012

12 news

New meat plant rises from the ashes SUE E DMO NDS Coromandel MP Scott Simpson, MP John Key and SFF chief executive Keith Cooper at the official opening of the new Te Aroha plant.

TWO YEARS ago the Te Aroha, Waikato, meat processing plant burned down, a major tragedy for

a small town in a productive farming area. But in a Phoenix-like rise from ashes, two years later almost to the day a state-of-the-art beef pro-

cessing plant has been opened by Prime Minister John Key. As Keith Cooper, chief executive of Silver Fern Farms, owners of the

plant, explained, “This was the first time our company has had the opportunity to build a new plant from the ground up. So we’ve… made use of advances in technology to produce the most efficient and productive plant we could.” In the intervening period, SFF had tried to find work for its staff at other plants, meanwhile the grins on the faces of the 380 people who will work at the plant when it reaches full production will be happy men and women. A tour of the plant showed the modern inputs. Some very large bulls were being processed at the time: as the full carcases swung into view, a quick swipe with an electric saw had the vast array of innards scooped into a moving line of separate trays. These were sorted as they moved along the line, with the offal separated out for different areas of preparation. The carcases were then cut in half longways, for trimming. With health and safety being paramount in this plant, each person on the chain is standing on a grilled platform, which can be smoothly moved up and down to ensure all

work is at a comfortable and safe level. In contrast to earlier visits to older plants, we saw many of the workers were women, whose work is valued for its speed and acre. In the vast boning room, at least four times the size of the old one, worker productivity is constantly measured. The carcases are weighed as they arrive, and management know how much product is expected from each, based on prices paid to farmers. Every piece cut from the bones is placed on a moving belt and weighed. Inefficient boning or slow progress leads to training or discussion. With a number of new staff, and everyone getting used to new premises and systems, after ten weeks productivity was gauged 65%. They expect in one month to approach the desired 100%. With product from the plant being packed into boxes on pallets, the lifting and carrying is easier. As the pallets are filled, they move downwards to floor level, so the operators don’t have to bend or stretch, but just place them at the same height each time.

Mixed results in experiments, resistance THE END of spring is still showing mixed results for the new gold kiwifruit varieties. December was meant to be ‘D-day’ for determining how well the new varieties would survive Psa. Varieties such as G3 and G9 were released to replace the highly susceptible Hort 16 cultivar which has now succumbed on some orchards throughout the country except in Nelson. However, results on the new varieties’ resistance to the disease are still very mixed, similar to that seen earlier in the season. Kiwifruit Vine Health (KVH) chief executive Barry O’Neill says resistance is very variable based on variety, location and the grower’s management of the orchard. “So we can see fantastic G3 on one orchard and on another orchard G3 is struggling; likewise G9, G14 or Hayward. So it is extremely variable at the moment.” However they are seeing progression of Psa in some orchards and some locations later into the summer than last year.

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14 news

Aus and NZ farm leaders differ on TPP to Rural News at a KPMG function last week for agricultural representatives with an interest in the 15th round of the TPP negotiations hosted by New Zealand from December 3-12 in Auckland. Linnegar said most Australia and New Zealand interests were shared. “We rely on exports heav-

Matt Linnegar

ily – you guys more than us – but nonetheless twothirds of what we produce is exported, so it’s important,” said Linnegar. “But if we have something that becomes another WTO (World Trade Organisation) round, that moves at a snail’s pace and we gain very little, we’ve wasted our time. “The key thing for us

and breathe, is it is quite foreign to the rest of the world,” said Wills. “So we’ve got a real battle. We have found in Auckland in these last few days, it’s hard work, tariffs cost us $1.5 billion as a farming community and a country in 2010; that’s a big prize. “So this stuff is hard, it is frustrating, but we’ve got to keep tracking on.

“We want real progress; if it’s moving at a snail’s pace, moving at fractions of percentages, then we are not going to be happy.” OW FINAN

L ER

A KEY Australian agricultural executive has warned if the Trans Pacific Partnership negotiations get bogged down in complications, they will advise their Government not to bother. “We want real progress; if it’s moving at a

might not be 100% across the board but it has to be real progress nonetheless – then it’s worthwhile pursuing.” But New Zealand Federated Farmers president Bruce Wills says TPP is worth the effort because it is “such a big prize” if successful. Both were speaking

pamelat@ruralnews.co.nz

snail’s pace, moving at fractions of percentages, then we are not going to be happy,” National Federated Farmers of Australia chief executive Matt Linnegar told Rural News. “We will advise our own government to say ‘forget about it’. “But if it is real progress – we understand that

PA M TI PA

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and our New Zealand counterparts is market access and rules of origin that makes sense in that access. If we get those two things, then we are well on the way to getting better results for farmers in both countries.” On the reported position of President Barack Obama wanting TPP completed by the end of 2013, Linnegar says “so we hear”. “At this particular round the US appears to be getting a sense of where everyone else is at rather than proffering too much themselves on ‘here’s where we’re going to move’.” His impression of the 15th round is “there hasn’t been a lot of movement; some of the right things have been said, but that hasn’t necessarily been followed up by action”. However Wills believes the battle will be worth it. “What you learn in this free trade stuff which Australia and New Zealand live

We did that free trade with China and it’s been hugely successful.” From a half-day attendance he was frustrated by some of the complications in the 15th round. “It’s going to take some time, but from New Zealand’s perspective, we have to keep going on this one.” He is encouraged by President Obama giving the date of October 2013 to wind up the agreement. “But there are plenty of people who are happy to sit in their own environments. They don’t want any bar of New Zealand’s world competitive farmers having access to their markets. So we’ve got to be pretty convincing.” TPP involves 11 AsiaPacific countries: Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, Peru, Singapore, the United States, Viet Nam, and New Zealand. Round 15 saw Canada and Mexico join negotiations for the first time.

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Rural News // december 18, 2012

world 15 Irish farm outlook not so green in 2013 FARM INCOME in Ireland this year will average €21,500 (NZ$33,600), a 12% drop, says the country’s agriculture and food development agency, Teagasc. The agency’s Agricultural Markets and Farm Incomes Review of 2012 and Outlook for 2013 report was released last week in Dublin. Teagasc economists say the average reduction masks big variations in the change in income on individual farms, notably dairy and tillage in the south and east where a wet summer is estimated to have cut dairy farm income 27% to average €50,000 (NZ$78,000). Tillage farm income is estimated down 20%. Income on beef farms increased marginally as prices for cattle remained relatively strong throughout the year. Pig prices also firmed but milk, lamb and cereals were down. Feed use and costs in grassland systems soared due to the poor summer making grazing, fertiliser spreading and silaging difficult. Tillage yields were also severely depressed. Teagasc says average farm incomes should recover in 2013 but not to 2011 levels. Further fertiliser and fuel cost increases are predicted but feed expenditure should be down substantially compared with 2012. Prices for milk and pigs are predicted to rise, while beef and sheep prices should remain steady. The outlook for cereals is highly dependent on global weather in the next six months, it says. Ending of some agricultural support payments in 2013 will hit beef and sheep farms.

Aussies target cheap imports AUSTRALIA IS beefing up its anti-dumping regulations and farmers are welcoming the move. The Federal Government will set up an ‘antidumping’ watchdog and double the number of investigators. It notes a sharp increase in suspected cases of foreign firms selling-off goods below cost price to hurt Australian businesses. National Farmers’ Federation (NFF) president and chair of the NFF trade committee Jock Laurie says agriculture is one industry susceptible to dumping. “Australian farmers depend on a rigorous antidumping system so we can continue to compete on a

brought into Australevel-playing field against lia at less than the cost of foreign produce, while production and unfairly also remaining complidumped in the market. ant with the World Trade Organisation (WTO) trade rules. “We believe it’s important that industries with legitimate claims against dumped exports are able to seek a remedy through Australia’s anti-dumping system to ensure unfair trading practices can be challenged – an important role for the Jock Laurie new Anti-Dumping They will also Commission.” have access to greater Under the reforms, resources in the form of Australian farmers will additional anti-dumping have access to improved investigators. Until information on whether now, the time, cost and overseas goods are being

complexity of launching an anti-dumping action has often been a deterrent to the agricultural sector, says Laurie. “At the same time, it is essential to Australia’s trading relationships that any anti-dumping claims occur within the WTO guidelines to ensure the antidumping system isn’t simply used as a form of industry protection. “Australia’s antidumping system must be robust and reliable, which is why the NFF has been working closely with the Government, through the International Trade Remedies Forum, on the

reform of this system. We also acknowledge the stricter penalties that will be applied against those who deliberately circumvent Australia’s antidumping rules.” The new anti-dumping measures include a commission to investigate complaints, a $24.4 million funding boost over four years for customs to deal with cases, a doubling in the number of investigators and stricter penalties against overseas firms that deliberately flout the rules. Australia’s timber union says a new antidumping commission will help to protect jobs in the timber and pulp paper industry.

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Rural News // December 18, 2012

16 agribusiness

Top Ag student cuts through competition pam tipa

UNLIKE MANY 18-yearolds, Shawn Sands is a future farmer with a fair idea of where he’s going and how he’s getting there. Sands won the Taratahi

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Cup for best overall student. He also won the agricultural training centre’s National Bank Cup for top dairy student level 3, the Strainrite Taratahi Fencing Competition Cup and the Perry

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Cup for ideal trainee. Sands grew up on his parents’ 74ha dairy farm at Aka Aka near Waiuku, just south of Auckland, which peak milks 224 cows. But after training – he’s going back for another year of study -- and before he decides whether to go back to the family farm, he’s getting experience on someone else’s farm. “I aim to work my way into share milking and even farm ownership someday,” he told Rural News. Meanwhile, he is returning to Taratahi, near Masterton, next year for the Agriculture Dairy level four course, backed by DairyNZ and a Richard Mills Memorial scholarships he has just won in addition to the accolades he achieved at the end-ofyear prize giving. Despite living on a farm all his life, Sands says he learnt plenty especially on the theory side, “It also gave me new ideas and I learnt things like how to fence properly, use a chainsaw safely and ride an ATV safely,” he says. “Coming from a farm it is still good idea to get qualifications and training. It all helps for getting jobs, putting on your CV, it helps going for a loan if you want a to buy a herd or something … they like to see you’ve got the qualifications to back up what you’re doing.” But he says the course is also great for city dwell-

ers with an interest in agriculture. “For anyone who has never been on a farm, it goes through all the basics. There’s quite a few people from Auckland or Wellington, some of them never set foot on a farm. By the end of the year you wouldn’t know they hadn’t had any experience before.” Sands says Taratahi is a great stepping stone for moving out of home rather than going straight into a job. “You meet a lot of different people down there, you get to network and make a lot of friends and socialise.” He puts his success this year down to attitude – being easy to train and showing a good work ethic. His parents and tutors played their parts. Taratahi chief executive Donovan Wearing said at the graduation of 139 students at the Masterton Town Hall that the training centre has a 90% course completion rate and 85% qualification rate. “Outcomes for Maori learners are some of the best in the country and that makes me extremely proud,” he said. The Bank of New Zealand Cup for top sheep student level 3 went to Danielle Scott who also took the Wrightson Cup for best wire work, the Landcorp Farming Ltd top level 4 sheep student was Cameron Dallas and the Semex NZ Ltd top level 4 dairy student was Jacob Abbot.

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Rural News // december 18, 2012

agribusiness 17

Benefits of free trade A NEW giant Asian free trade negotiation was launched last month – at the end of the East Asia Summit in Cambodia – with a goal to complete the deal by the end of 2015. New Zealand is part of both trade talks and Prime Minister John Key attended both. The Regional Comprehensive Economic Partnership (RCEP) agreement is being driven by Asean (the Association of Southeast Asian Nations), which hosted the East Asia summit. The 16 countries involved in RCEP are the 10 Asean countries; plus China, Japan, Korea, India, Australia and New Zealand. It’s expected to be a comprehensive economic partnership becoming a modern, high-quality agreement aimed at transforming the region into an integrated market of at least three billion people with a combined GDP of $US19.78 trillion – based on 2011 figures. RCEP is a strategy aimed at maintaining regional growth by ensuring the markets of participating countries remain open and competitive. The agreement will contribute to ASEAN economic integration, equitable economic development and strengthening economic cooperation

between ASEAN member states, as well as between ASEAN and its partners. At the same time, the official launching of RCEP will strengthen ASEAN centrality in regional economic integration as the United States-led Trans-Pacific Partnership

tial FTA will certainly help maintain regional competitiveness and promote global economic growth. However, with some destabilising factors present in the region and respective concerns of involved countries, barriers still lie ahead of comprehensive economic

RCEP is a strategy aimed at maintaining regional growth by ensuring the markets of participating countries remain open and competitive. gradually progresses toward its scheduled conclusion at the end of 2013. The RCEP is also expected to include economic and technical cooperation elements that would allow all parties, regardless of their level of development, to maximise the opportunities made available by deeper and broader economic engagements. Critics noted a combined market force such the RCEP will become the world’s biggest regional free trade area (FTA) upon its completion. The poten-

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cooperation in East Asia. Asia is already a major market for New Zealand exporters. Dairy products, meat, wool, logs and timber products dominate our goods exports to the region. But we face a continuing challenge to expand the range and depth of our markets in the region. And then to lift the value of our goods and services exports, which have been impacted by the high kiwi dollar. However this free trade agreement can only mean good news for New Zea-

land farmers long-term, as it eases the access to the world fastest growing region. There is a lot of politics to go under the bridge before the RCEP comes to fruition and there could likely be hiccups and controversy. However, we have already seen the impact of the Chinese free trade agreement. If this is anything to go by the demand for New Zealand’s agricultural products – all shapes and sizes – is about to heat up. Of course, there are other outcomes that will impact overall returns for agricultural producers. But nothing has a better long-term economic impact than a rise in demand for one’s goods. All products from meat to wine will also be given a boost as Asia’s demand for New Zealand goods continues to grow. 2012 has been a challenging year for most concerned, but the prospect of this huge free trade agreement is a nice Christmas present for the agricultural sector and will be one to watch heading into 2013. • Francis Wolfgram, BA (Econ) is an independent financial analyst with 15 years’ experience in the financial markets, working for some of the world’s largest financial institutions. franciswolfgram@gmail.com

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Rural News // december 18, 2012

Market snapshot Meat

lamb market trends

North Island Change c/kg

c/kgCWT

South Island

Last Week

Change c/kg

Last Week

Lamb - PM 16.0kg

-10

4.96

-12

5.01

Steer - P2 300kg

n/c

4.25

n/c

4.05

Bull - M2 300kg

n/c

4.35

n/c

4.08

Venison - AP 60kg

-10

6.80

-15

7.00

BEEF PRICES

$5.5 $4.5 $3.5 Sep

Oct

Nov

Dec

Jan

Feb

South Island 16.0kg M Lamb Price $8.5 $7.5

2 Wks Ago

Last Year 4.58

-10

4.94

5.04

7.54

4.35

4.65

PM - 16.0kg

-10

4.96

5.06

7.56

P2 Cow - 230kg

n/c

3.50

3.70

PX - 19.0kg

-10

4.98

5.08

7.58

M Cow - 200kg

n/c

3.40

3.50

PH - 22.0kg

-10

4.99

5.09

7.59

Local Trade - 230kg

n/c

4.15

4.40

Mutton

MX1 - 21kg

-10

2.95

3.05

4.55

P2 Steer - 300kg

n/c

4.05

4.35

SI Lamb

YM - 13.5kg

-12

5.01

5.13

7.53

M2 Bull - 300kg

n/c

4.08

4.20

PM - 16.0kg

-12

5.01

5.13

7.55

P2 Cow - 230kg

n/c

3.20

3.40

PX - 19.0kg

-12

5.01

5.13

7.57

M Cow - 200kg

n/c

3.00

3.30

PH - 22.0kg

-12

5.01

5.13

7.58

Local Trade - 230kg

n/c

4.10

4.25

-10

2.73

2.83

4.50

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

Cattle NI

-8%

31.7

34.4

30.7

37.2

Cattle SI

-3%

Lamb NI

10.4

10.7

10.3

11.0

Cattle NZ

-7%

42.1

45.1

41.0

Bull NI

-8%

9.8

10.6

Bull SI

-13%

1.3

Str & Hfr NI

-7%

Str & Hfr SI

Last Year

5yr Ave

+28%

202

158

194

239

Lamb SI

+15%

161

140

163

263

48.1

Lamb NZ

363

298

357

503

10.8

13.3

+22%

Mutton NZ

+17%

148

127

101

174

1.5

1.9

2.2

15.1

16.2

14.6

16.5

6.1

6.4

6.9

Cows SI

-3%

3.0

3.1

2.0

1.8

Jan

Feb

NZ Weekly Lamb Kill

750 600

Last Year

450

This Year

300

Oct

Sep

Oct

Nov

Dec

Jan

Feb

5yr Ave Last Year This Year

$3.5

Change

$3.0 Sep

Oct

Nov

Dec

Jan

Feb

$4.5

Feb

Last Week

2 Wks Ago

Last Year

5yr Ave

n/c

1.33

1.90

1.72

NZ$/kg

-7

5.65

5.72

8.47

8.76

Demand Indicator - UK Leg Price

Last Week

2 Wks Ago

Last Year

5yr Ave

£2.50 £2.00

95CL US$/lb

2.25

2.24

2.08

1.56

NZ$/kg

-4

5.96

6.00

5.93

4.82

South Island 300kg Steer Price

Jan

UK Leg £/lb

Export Market Demand

$4.0

Dec

Change

0 $4.5

Nov

Export Market Demand

North Island 300kg Bull Price

Change

0 Sep

Last Year This

40 $5.0

1000s

150

NZ Weekly Beef Kill Dec

Estimated Weekly Kill 3 Wks Ago

$5.5

MX1 - 21kg

2Wks Ago

7.3

YM - 13.5kg

Mutton

Change

5.3

Nov

NI Lamb

NZ Slaughter

Estimated Weekly Kill

7.6

Oct

Last Year

4.25

6.8

Sep

2 Wks Ago

4.35

-11%

$3.5

Last Week

4.25

Cows NI 5yr Ave Last Year This Year

Change

n/c

$6.5

$4.5

c/kgCWT

n/c

1000s 5yr Ave Last Year This Year

Last Week

P2 Steer - 300kg

NZ Slaughter

$6.5

Change

M2 Bull - 300kg

North Island 16.0kg M Lamb Price $7.5

LAMB PRICES

c/kgCWT

$8.5

beef market trends

Demand Indicator - US 95CL Beef

Last Year

£1.50 £1.00 Sep

This Year

Oct

Nov

Dec

Jan

Feb

$2.20 $4.0

$2.00

Last Year

5yr Ave

$3.5

Last Year This Year

Sep

Oct

Sep Nov

Dec

Jan

Oct

Nov

5yr Ave Last Year This Year

$8.5

Jan

Feb

$8.0

Change % Returned NI

+1%

73.0%

72.0%

78.46%

75.8%

% Returned SI

+2%

68.5%

66.7%

70.9%

70.6%

3 Wks Ago

Last Year

5yr Ave

Procurement Indicator - North I.

90%

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI

-2%

91.7%

93.9%

92.0%

63.6%

% Returned SI

-1%

91.2%

92.3%

62.1%

Procurement Indicator - North I.

2Wks Ago

North Island 60kg Stag Price

$9.0

Dec

Feb

Procurement Indicator $9.5

Change

This Year

$1.80

$3.0

Procurement Indicator

$7.5

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

Last Year This Year

Oct

Nov

Dec

Jan

Feb

80%

$7.0

70%

$6.5 Sep

Oct

Nov

Dec

Jan

This Year

60%

South Island 60kg Stag Price

$9.5

Sep

Nov

Jan

5yr Ave Last Year

$9.0

This Year

$8.5 $8.0

Procurement Indicator - South I.

90%

Last Year This Year

80%

$7.5

70% Oct

Nov

Dec

Jan

Feb

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

Last Year This Year

Oct

Nov

Dec

Jan

Feb

Venison Prices

$7.0 Sep

Procurement Indicator - South I.

Last Year

Feb

60% Sep

Nov

Change

Jan

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.

Last Week

2 Wks Ago

Last Year

5yr Ave

NI Stag - 60kg

-10

6.80

6.90

8.25

7.54

SI Stag - 60kg

-15

7.00

7.15

8.80

7.92

M re people on the ground,

Rural News // december 18, 2012

news

price watch

BEEF

WOOL PRICE WATCH

DAIRY PRICE WATCH

Indicators in NZ$

Works prices for cattle remain firm in general while competition for bulls in the North Island ramped up last week with stronger interest out of the Waikato. Prices on 300kg bulls were more like $4.30$4.35/kg at the start of the week but ended the week at $4.35$4.40/kg and up to $4.45/kg in some cases. Rain in western regions is likely to slow up the bull and cow kills in those areas will see competition remain firm. The margin on 300kg steer is less appealing for meat companies and prices have held at $4.20$4.30/kg. A further drop in kill numbers could result in firmer prices in the near future but this will depend on some good follow-up rain.

Coarse Xbred Indic.

-4

3.90

3.94

6.36

Butter

Fine Xbred Indicator

4.72

4.71

6.61

Skim Milk Powder

Lamb Indicator

Mid Micron Indic.

8.57

9.21

Whole Milk Powder Cheddar

Canada hungry for beef There has been a revival in Canadian beef demand in recent weeks with buyers hunting for product on the back of limited domestic supplies. Cow kill has been well below last year with favourable pasture conditions and prospects of record high cattle prices in 2013 encouraging Canadian farmers to retain females. In addition, cattle on feed inventories have dropped due to high feed costs. Consequently, Canadian traders are looking off shore to maintain supply with reports indicating they are prepared to pay top dollar to secure their requirements. Imported 95CL bull is currently receiving a US2c/lb premium over the US market and this added competition should support prices at the farmgate as processors look for stock to fill orders.

LAMB

Change

08-Nov

Last Year

Beef prices steady to firming at the farmgate

01-Nov

Wool Indicator Trends

650 600 550 500 450 400 350 300 Dec

CXI

FXI

Indicators in NZ$/T

Prev. 2 Wks

Last Year

-50

3933

3982

4911

-53

4083

4136

4394

-83

4053

4136

4685

-37

4803

4840

5089

Dairy Prices Trends

6,000

Last 2 Wks

Change

SMP But.

5,000

WMP Ched.

4,000

Feb

Apr

Jun

Aug

3,000 Dec

Oct

Coarse Xbred Indicator

700

Feb

Apr

Jun

Aug

Oct

Whole Milk Powder Price (NZ$)

5,500 Last Year This Year

600

4,500

500

Last Year

400

This Year

300 Sep

3,500 Oct

Nov

Dec

Jan

Feb

01-Nov

Last Year

Overseas Price Indicators Indicators in US$/kg

Sep

Oct

Nov

Dec

Jan

Feb

Overseas Price Indicators

Change

08-Nov

Indicators in US$/T

Change

Last 2 Wks

Prev. 2 Wks

Last Year 3800

$5/kg approaches for lamb

Coarse Xbred Indicator

-4

3.20

3.24

4.85

Butter

+25

3275

3250

Fine Xbred Indicator

-1

3.87

5.04

Skim Milk Powder

+25

3400

3375

3400

Export lamb prices have taken another decent hit over the last 2 weeks – dropping a further 15-20c/kg per week. North Island prices have been at the $5.15 - $5.20/kg level (gross incl. presentation & loyalty premiums). Standard pricing without premiums was $5.05$5.10.kg. Light lambs <13.3kg are being heavily discounted with some companies’ schedules at $2.50-2.60/kg so careful drafting is required. Overall plants are full with lamb. The latest kill estimates show North Island numbers were up nearly 30% week on week. Kill rates are running in line with last year at this time. The mutton kill was up 10% in the North Island last week but numbers sound like they are now trending down as companies concentrate on lambs. Booking space, particularly for ewes before Christmas, is hard for some and impossible for others. With supply well exceeding capacity levels at present lamb prices fell another 10-15c/kg last week. Lamb contracts now out for Jan/Feb at $4.80-4.90/kg are starting to put a peg in the sand for pricing into the New Year.

Lamb Indicator

n/c

3375

3625

Mid Micron Indicator

7.02

Whole Milk Powder Cheddar

+50

4000

3950

3938

Store lambs prices follow schedules south Store lamb prices took another step backwards in the North Island as the supply of lambs continues to outstrip demand. 27-28kg lambs were between $2.00 - $2.10/kg in the paddock last week. $2.00/kg was more common later in the week. The 3rd cut lambs are not well supported at all with 20-25kg lambs doing around $1.90-$2.00/kg and lighter lambs around the $1.85/kg mark. Prices for lambs at Stortford Lodge in Hawkes Bay have dropped sharply with a real lack of local buying power. The lack of rain is holding back crops. Most 25-29kg lambs sold at $2.00-$2.05/kg. Prices at Feilding were also back on the previous week.

Dairy

Dairy Prices in US$/Tonne

500

SMP .But

4,500

450 400

WMP .Ched

3,500

350 300

CXI

250 Dec

Feb

FXI

Apr

Jun

Aug

2,500 Dec

Oct

Coarse Xbred Indictor in US$

Feb

Apr

Jun

Aug

Oct

Whole Milk Powder Price in US$/T

4,000

550 500

3,500

450 400 350

Last Year This Year

300 250 Sep

Oct

Nov

Dec

Jan

Feb

Last Year

3,000

This Year

2,500 Sep

CURRENCY WATCH vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year 0.823

0.815

0.774

Euro

0.642

0.634

0.639

0.579

UK pound

0.519

0.513

0.510

0.494

0.75

Aus dollar

0.794

0.789

0.783

0.759

0.70

Japan yen

68.63

67.56

64.76

60.10

Euro

Dec

Jan

Feb

Last Year This Year

0.80

Sep

Oct

Nov

Dec

Jan

Feb

UK Pound

0.54 0.52

0.60

0.50 Last Year

0.56 0.52

Nov

0.85

0.833

0.64

Oct

US Dollar

0.90

US dollar

Firming dairy price bump up payout Overall Oceanic dairy product prices have been trending upwards since June this year in US dollar terms. There is a steady to firming tone to the market. This trend is now starting to be reflected in the payout predictions for the current season. Fonterra recently lifted their payout by 25c for this season and also announced a 40c lift in January’s advance payout – which is really backpay for the season to date. This news, as well as recent rains, will have dairy farmers in a more festive mood as Christmas approaches.

Wool Indicator in US$

550

This Year

Sep

Oct

Nov

Dec

here and overseas.

Jan

Feb

0.48

Last Year This Year

0.46 Sep

Oct

Nov

Dec

Jan

Feb

Rural News // December 18, 2012

20 opinion editorial

edna

Hooray for Henry OPENING FONTERRA’S new milk plant last month in Canterbury, Prime Minister John Key recalled that, after he took office, one of his first overseas trips was to China. It was shortly after the Sanlu melamine tainted-milk scandal and Key was keen to take Fonterra chairman Henry van der Heyden, but “never 100% sure Beijing would accept that”. But the Chinese did not push back, and van der Heyden was one of five business executives chosen to be photographed with the Chinese premier at the Great Wall – a signal that Fonterra is the torchbearer for New Zealand in its position and forays in the global marketplace. And as chairman since 2002, the dairy farmer from Putaruru deserves credit for helping keep Fonterra’s torch burning bright. During van der Heyden’s watch Fonterra launched Global Dairy Trade (GDT). Slated by other milk processors worldwide for the move, Fonterra marched on. Today GDT is a global reference point for dairy prices and includes many major dairy players. Fonterra’s other achievement during the last decade include helping New Zealand secure free trade agreements, developing a governance model that allows shareholders greater say in running the co-op, building business relationships with other global dairy players, securing new chief executive Theo Spierings and, of course, TAF (trading among farmers). The share trading scheme, now in operation, has been a divisive process, but van der Heyden has always strongly believed it was the best thing for Fonterra. Sadly, he has come under fire from some shareholders for spearheading TAF. His decision to stay on as a director after this week’s annual meeting has also stirred controversy. Sure he has made mistakes and at times been seen as autocratic, a view Rural News has sometimes shared. However, no one can dispute the passion, effort and sheer hard work van der Heyden has put into Fonterra and NZ Dairy Group before that. He has always been straight shooter. Putting the interest of the co-op first has been a hallmark of his tenure. Prime Minister Key rates van der Heyden highly. The Chinese authorities think the same. It’s unfortunate a small group of shareholders don’t. Last month van der Heyden was awarded the title 2012 chairman of the year. Politics has always played a part in New Zealand’s dairy industry. But to malign van der Heyden – with the aim of attracting shareholder support or more farmer backing for criticism of the co-op’s policy – doesn’t do justice to the great service he has provided Fonterra and its predecessor organisations. Henry van der Heyden, warts and all, deserves farmer praise and thanks for his 20 years as a true leader of New Zealand’s dairy sector.

“The Christmas tree you were cutting cushioned your fall, but it’s OK, I caught the chainsaw!”

the hound Pain in the asset sale SO SOLID Energy has managed to flog-off its biodiesel business. Your old mate wonders what price the state-owned enterprise actually got for it. Predictably, both vendor and buyer say that’s confidential. But it’s a fair bet the figure will come out in due course. When it does we’ll probably find it went for a fraction of the $17m invested in the Rolleston site, not to mention the millions of dollars some suspect the SOE lost trying to crop ridiculous regions. It doesn’t bode well for other asset sales, but at least this sale was to a consortium of New Zealanders.

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Tenuous link

Yeah, right!

THE HOUND could not be bothered with all the hype that recently engulfed the country – especially in Wellington – over The Hobbit movie premiere. However, it seems the silly, hairyfoot fever that infected most of the beltway included Fed Farmers – who couldn’t help trying in cash in on the Peter Jackson extravaganza. The farmer lobby belted out a media release, on the same day as the premiere, in the name of meat and wool chair Janet Maxwell, saying it was; “hopeful The Hobbit may also spur overseas demand for all things kiwi including wool.”

YOUR OLD mate had to have a bit of a giggle at the claims made by outgoing Fonterra chair Sir Henry van der Heyden that he’ll not “keep holding the co-op’s reins” when he steps down. This comes on the back of the mounting criticism of the white knight’s decision to keep a spot on the dairy giant’s board once he hands over power to new chair little Johnny Wilson. He also dismissed suggestions the company’s board instructs farmers on whom to vote for. “The candidate assessment panel is an independent panel”. The Hound reckons there is a Tui billboard element in that claim!

Who’s the fossil? THE HOUND notes that Green Party climate spokesman Kennedy Graham couldn’t control his glee that New Zealand had received two ‘fossilof-the-day’ awards. These were given out at the recent international climate talks in Doha, Qatar by an eco-fundamentalist group of NGOs to countries it claims have “performed badly” in the climate change negotiations. However, the Hound found it deliciously ironic that the Green Party’s own living relic – Kennedy Graham, who must be nearing 100 years of age – would be promoting something called: ‘the fossil awards’!

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YOUR CANINE crusader knows what dog tucker looks like when he sees it and reckons the fledgling political party formerly known as NZ Rural Party, now called Focus NZ, will be done like a proverbial dog’s dinner at the next election. A mate of yours truly has unkindly described Focus NZ’s board as a list of losers, retreads and no-hopers who include Far North-based founders Ken Rintoul and Joe Carr, former Federated Farmers Dairy chair Lachlan McKenzie, and former MPs Ross Meurant and Sandra Goudie. I hear Brendan Horan is looking for a new party!

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Rural News // december 18, 2012

opinion 21

Woolly or wishful thinking? WE SHOULD give thanks for those fearless souls who still believe they can save the strong-wool industry. As those who have gone before have found, the path to this salvation can be unforgiving. The latest rescue plan is driven by those who seem to have access to Wools of New Zealand’s intellectual property. To those who have watched the tragic demise of the Wool Board the latest call to arms may sound familiar. There is a recycled look about those promoting what will be called the Wools of NZ Trust. The story that accompanies the promotional document could prompt a ‘same-old same-old” response. But this may be unfair. Many of those involved

with Wools of NZ Trust were enthusiastic supporters of Wool Partners, which started out brilliantly but failed to get the numbers. If nothing else the Wool Partners campaign should have shown potential flaws in any exercise aimed at getting farmers to voluntarily front-up with money. Wools of NZ Trust’s and Wool Partners’ mission aimed at uniting strong-wool growers from the wool shed through to the marketplace. The back-up information is

extensive (85 pages), emphasising the likelihood that time is running out. Strong wool, in the lucrative flooring market, now makes up about 2% of the world’s wool; New Zealand wool makes up about 0.6 % of this market. However, there are huge opportunities to expand New Zealand wool in countries such as China with a growing, wealthy,

middle class who are prepared to pay extra for quality. The Wools of NZ Trust prospectus lists a range of considerations; the key requirement seems to be how to activate strongwool growers. While noble visions and fine mission statements all sound great, farmers, are the ones to be persuaded to buy into something that isn’t revo-

lutionary, but evolutionary. Timing can be essential. It was unfortunate timing that helped sink Wool Partners. Before its prospectus came out, prices in the market place increased. Out in the other world there were wool brokers and exporters handling about two thirds of the country’s strong-wool clip. They could claim to have helped lift prices. Sadly, after the failure of Wool Partners plan, prices for strong wool declined. But for some there were still some good bits worth revisiting. So the new model is born with Wools of NZ on the letterhead. My mates are generally negative, possibly because there is still a cost. Growers will be expected to buy a min-

Just the facts thanks

important and topical issue

IT’S A shame Geoff Burton (Rural News, December 4) doesn’t check the facts before suggesting trout stocks in Lake Taupo may be declining because fewer nutrients are going into the lake because of Waikato Regional Council’s new Variation 5 policy. The reality is that over the past 10 years the load of nitrogen carried by the inflows into the lake has increased by about 1% per year, while the load of phosphorus has decreased at about a similar rate. Nothing in these figures, that we’re aware of, would indicate any reduction in nutrient loads that may lead to trout numbers declining. Neither figure has been influenced by Variation 5. We hope Variation 5 will eventually mean the load of nitrogen that will enter the lake will be lower than it would otherwise have been had nothing been done. But, even so, our water scientist considers the load of nitrogen entering the lake in future is unlikely ever to be lower than in the recent past. We’re aware the Department of Conservation is undertaking a major study to see why trout stocks have declined in the lake. But, contrary to Mr Burton’s claims, DOC confirms to us it has not suggested the lake is now “too clean for trout” and certainly hasn’t claimed Variation 5 has caused any problems. Laurie Burdett Taupo councillor, Waikato Regional Council

THANKS TO Rural News’ Peter Burke for being the only reporter to attend and report on the final B+L NZ Taupo monitor farm open day. This was a summary of the findings of the four-year programme covering the introduction of Variation 5 and our very important messages to New Zealand farmers and policy makers, regarding our leading experience in integrated and

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sustainable land and water management. It is frustrating and difficult to understand why the agricultural media, in general, has shown such poor interest in our ground-breaking work on this topical issue. Geoff Burton past chairman B+L NZ Taupo monitor farming steering committee Taumarunui

No joy from attack on Joy YOUR RECENT editorial and accompanying Hound comments deriding Mike Joy’s ‘international outburst’ on the state of New Zealand’s steadily deteriorating freshwater resources is unfortunate. To further describe those who share Joy’s concerns as “environmental-Taliban mates” is extraordinary, and way out of step with the reported comments of Bruce Wills in your same paper. He rightly observes our “overseas markets scrutinising our environmental performance far more vigorously than any time in our history”, and that the Federated Farmers board supports his lead on environmental issues.

Both men recognise the serious slide in the health of New Zealand’s freshwater catchments, particularly Joy who has witnessed and catalogued much of the degradation here in such a short timeframe. His concern and care for our environment obviously compels him to speak out on these issues. And who better to? All power to Joy and Wills for leading the charge here, especially since the Ministry for the Environment has had so many positions recently axed, and will no longer be providing their annual report on the state of our national freshwater resources. Nick Loughnan, Alexandra

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imum 5000 $1 shares in Wools of NZ, based on one share/2kg of greasy wool produced. There will also be an annual 15c/kg levy (called a commitment) on all wool produced. Wools of NZ Trust aimed initially to collect $10 million. It could still get up and running on $5 million. However, there are some mates who congratulated Wools of NZ Trust

on their efforts and who already have their chequebooks out. These positive folk know it is a long shot, but are reassured to find people out there still who feel passionate about wool. They agree this may the last chance for strong wools to move out of the bargain basement market and into the high value sector where they belong.

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Rural News // December 18, 2012

22 management

Fungicides to the fore a n d rew swa llow

SUCCINATE DEHYDROGENASE inhibitor: remember that name. Better known as SDHI’s, this new group of fungicides dominated crop protection discussion at FAR’s main field day of the year, Crops 2012. Syngenta’s Seguris Flexi (isopyrazam) is the only one on the New Zealand market to date but several other manufacturers have SDHI products in the approvals process and deployed in trials. BASF’s is based on the active fluxapyroxad which it has branded as Xemium, though Xemium is not a product name. “It’s been in the development pipeline in New Zealand for four years,” technical manager Grant Hegarty told Rural News. Marketed as Adexar in the UK and Europe, it gives broad spectrum disease control in wheat and barley as a foliar spray, and looks particularly promising as a barley seed treatment. “It would be the only one to offer control of foliar diseases. We’re talking about taking out rhyncosporium [with seed treatment] right through to T2.” Meanwhile Bayer’s Neil Wadding-

ham was talking about bixafen, another SDHI offering control of all the key cereal diseases, and increasing leaf size. That physiological effect has been shown to increase yield in the absence of disease. “It’s the first product [in the UK] to have that on the label.” Such effects could be a key to meeting FAR’s objective for wheat yields, 20t/ ha by 2020, he believes. “It’s a bit more ambitious target than England’s 20t by 2032 project!” Writing in the proceedings provided at the field day, FAR’s Nick Poole listed other SDHIs being commercialised globally: penthiopyrad from DuPont; furametpyr from Sumitomo; seed treatment penflufen (as well as bixafen) from Bayer; sedexane (as well as Seguris) from Syngenta. UK expert Jim Orson noted the SDHI’s are “eye-wateringly expensive” but have become the mainstay of wheat T2 sprays in England, with bixafen and fluroxyprazad tending to be preferred to Seguris Flexi as they offer better eradicant activity on speckled leaf blotch (aka septoria). “But that might not matter over here,” he added, in light of the disease’s lesser prevalence in New Zealand.

Essential tools: a sheet and a smallish space, says Richard Townsend.

Getting to grips with grass grubs DO YOU know a first-year grass grub from a second-year specimen? For cropping farmers that’s essential to assess the risk posed to autumn planted crops, Agresearch’s Richard Townsend told Crops 2012 visitors. “You really do have to work out if you’ve got a one-year or two-year lifecycle,” he stressed. Second-year grubs are much larger and pose little risk to autumn sown crops as they wait for winter’s cold stimulus to pupate. In contrast, first-year grubs are smaller but much more active feeders, damaging crops until they reach sufficient size to pupate. As few as 20 such grubs/m2 can cause over 10% yield loss, and even crop failures. “The problem in an arable situation is there’s nothing else [other than the crop] for them to eat.” Thresholds in uncultivated ground are considerably higher as grubs are less mobile. “For those of you who can go no-tillage, that’s a good option to consider.” To assess populations, use a reasonably small spade to dig out a measured volume of soil, and spread the soil out on a sheet or mat, says Townsend. “Go through it three or four times or you are likely to underestimate the populations.” Grubs from eggs laid this spring will be big enough to get an accurate count by mid to late February.

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Rural News // december 18, 2012

management 23

Porina biocontrol promise p e te r bu r k e

IMAGINE LOOKING across the farm and being pleased to see hundreds of creatures vomiting and dying of dehydration. Sounds surreal, but it’s becoming reality thanks to smart scientists working on porina caterpillar control. Mark Hurst, Agresearch Lincoln, and his Invermay colleague Colin Ferguson, have, for several years, been working with bacteria Yersina entomophaga MH96, a bug Hurst discovered in native grass grubs in 1996. It’s since been found to be deadly to porina and other insect pests such as bronze beetle and diamond back moth. Ferguson’s laboratory and field trials have taken it close to commercialisation as a biocontrol. “Porina have to ingest the bacteria, which produces a range of toxins which strip the lining of the insect’s gut causing it to die fairly rapidly through a combination of vomiting and dehydration. Basically it can’t keep moisture in its body and, based on results of laboratory trials, the porina die within 72 hours,” he told Rural News. The traditional approach to get porina

to eat the bacteria is to spray it on pasture. “Another way we can do it is to develop a bait which the porina will find attractive and feed on.” Bait formulation with a biopolymer gel makes the yersina last longer than when sprayed on. Results with a product in development are promising. If commercialised, it would be a more ‘natural’ control as while yersina affects some other soil insects, it does not affect the range of soil biota organophosphate sprays do. However, yersinia won’t persist in soil or reproduce naturally so its use will be more like a chemical insecticide than some biocontrols, he adds. “Realistically it will be a couple of years before we go to market. It really just depends on how much Mark and the team at Lincoln can improve the formulation.”

AgResearch’s Colin Ferguson. Inset: All clear... no porina here.

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Understanding porina Whatever the product, understanding porina will help target controls, says Colin Ferguson. Typically populations are several porina species, possibly as many as ten. While farmers don’t necessarily need to know the different species they do need to know about flight times, he says. “What is important is that different species fly at different times of the year, and the time of the year that they fly and lay eggs determines when the caterpillars are feeding most voraciously and when the damage they cause is going to show. “It also determines when control measures can most effectively, and profitably, be implemented. For instance, we had big flights in Otago and Southland recently. “The damage from caterpillars that arise from eggs laid during those flights will start to show in April but the caterpillars can be controlled as early as January.” Mass spring moth flights are experienced nationwide, with a trickle of flights through summer. A second mass flight in the South Island can occur mid to late January but in the North Island late February is more likely. “Generally farmers treat porina from both flights much too late: 8 to 10 weeks after the flights occur that’s when farmers should treat.” Porina’s relationship with a range of naturally occurring viruses in soil is also key. The viruses are natural regulators of the pest and if associations are disrupted or destroyed, populations can spike, he explains. “The most common problems are linked to cultivation. As soon as we cultivate we destroy any porina which might be in the soil, but because there are no porina in the soil the viruses can’t survive and they die out as well. In response the population of porina will build up over the next couple of years more quickly than the viruses and then, usually 3 years after cultivation, there’ll be outbreak of porina. “The following year the virus will catch up things will settle down a little bit.” A hot summer or drought can similarly disrupt things as egg and larval survival is poor. “The difference here is that with cultivation you are looking at young pasture that’s going to get hit, whereas with drought it’s the whole farm, and the damage can cover an entire district.”

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Rural News // December 18, 2012

24 animal health

Heed homekill rules says MPI AS THE holiday season approaches the Ministry for Primary Industry says remember the rules about homekill. “The law clearly

states that homekill can be undertaken by the animal’s owner only,” stresses MPI animal products manager Judy Barker. The resulting carcase

or meat cannot be sold, nor is sale of an animal just prior to slaughter on a property for subsequent removal permitted. “An owner can kill

the animal themselves on their own property, or they can hire a listed service provider to slaughter and butcher the animal on their property

Naya Brangenberg says what people ask is illegal. PHOTO: MARK BEATTY

I’M STICKING WITH WHAT GIVES ME THE MOST SECURITY

or the service provider’s premises,” she explains. To use a service provider an owner must be involved in daily care of the animal for at least 28 days prior to its slaughter. Homekill meat can only be eaten by the animal’s owner and their direct family (grandparents, parents, children) or household. The run-up to Christmas and the holiday season often sees an increase in enquiries for homekill meat from farmers, notes Barker. Wairarapa farmer and MPI employee Naya Brangenberg, who runs a small free-range pork business, echoes that. Over the years she says she’s

had many requests from people to buy one of her animals and kill it at her place. “It’s easy to explain that what they’re asking for is illegal,” says Brangenberg. “What’s more, I don’t have the facilities to do the kill humanely on our property or the proper food safety protocols in place. “Most people know what they’re asking is technically illegal, so once they realise you’re not interested they pretty quickly move on.” Buying a live animal from a farmer and having it immediately sent to slaughter at a registered abattoir is permitted.

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Johne’s and nutrition

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. Talk to your vet now about a sheep performance vaccination plan for your farm. For more information visit www.sheepvax.co.nz AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ® Registered trademark. MSD Animal Health Phone: 0800 800 543. SPV-413-2012.

SECURE LAMB NUMBERS. SECURE YOUR GAINS.

Members of the ‘Expert group formed to fight Johne’s disease’ (Rural News, November 20) could well start by reading ‘Natural farming and land care’ by Pat Coleby. Any farmer and vet would by enlightened. In the chapter on copper, Johne’s gets mentioned several times. It says Johne’s disease, like many others, is a result of poor nutrition. Nothing to do with not enough to eat. Natural browsers, deer, goats and alpacas, need more copper then natural pasture eaters. Not so long ago deer and goats were living in the bush and used to eating high levels of copper naturally occuring in foliage. We did them no good by putting them in paddocks of ryegrass and clover. Pigs too, need more copper and therefore dig up paddocks. Animals that are deficient in copper are at risk of worms. Adding copper to their diet in feed or licks raises their resistance to all interior parasites. Pat’s book describes a lick made of dolomite, copper sulphate, sulphur and kelp. We used to drench our calves and cows with a teaspoon of copper sulphate and dolomite but they have not needed drenching for years. Copper can be very poisonous, so we always provide it with dolomite as an antidote. I read some time ago dairy cows died after feeding palm kernel because of the high level of copper it contained. Maybe a bag of dolomite would have saved them. Pat’s easy to read book explains why and how things go wrong with animal health. It’s mainly because modern farming mines the soil of minerals and these are not put back by using urea or superphosphate. Barbara van der Valk Otaki (Abridged)

Rural News // december 18, 2012

animal health 25

SECURE YOUR LAMB NUMBERS. SECURE YOUR GAINS.

How to plan for a successful season.

PGG WRIGHTSON says saleyard mixing of rearer calves from multiple properties is commonplace and does not present an undue animal health risk. The rural services giant’s comments follow concerns raised with Rural News by Ngongotaha rearer Trish Hosking who says 30 of a batch of 61 calves she had this spring died due to an outbreak of salmonella. She believes the disease arrived with an infected animal or animals bought at PGW’s Reporoa calf sales. “I’ve never had an outbreak of disease like this before.” The fact the calves were the first to go into a brand new shed on her property, with a town (ie clean) water supply and no rodents also point to the infection being imported, she says. When she took delivery of the calves, she was shocked to find the four pens of calves she bought were sourced from 22 different farms. “I had no idea I was buying calves from 22 farms. If I’d known that, I wouldn’t have bought them.” Hosking also says calves were penned too tightly at the sale, and the sawdust flooring would have prevented adequate disinfection between the twice weekly sales. PGW’s North Island livestock manager, Donald

Baines, says the pens are given an anti-bacterial and detergent spray after every sale. “The whole industry is very aware of transferable diseases,” he told Rural News. He says Hosking’s complaint has been investigated and it is the only complaint arising despite thousands of calves being sold through the Reporoa facility this spring. “If there was an issue [with mixing of lines] the industry or participants in the industry wouldn’t engage in it.” The Ministry of Primary Industry’s principal advisor, readiness and response, Andre van Halderen told Rural News it has received no complaints about mixing of lines of calves at saleyards, and “from an animal welfare perspective, the mixing of calves should not be an issue,” he says. “There are currently no restrictions on mixing groups of calves in saleyards out of pragmatism. Compliance requirements in the form of legislation/ regulations or codes need to serve a purpose. The very fact that animals are in close contact at saleyards means a potential exchange of organisms.” That said, animals at saleyards should be healthy, he stresses. Van Halderen’s comments appear at odds with Code of Recommendations and Minimum Standards for the Welfare of

Survivors: some of Hosking’s calves that made it.

Animals at Saleyards, notes Hosking. Section three of that code, headed Yarding, states: Sufficient yarding should be provided to avoid mixing different consignments and/or overcrowding of animals. It also says good facilities for thorough hosing down of yards should be available at frequently used saleyards, and section four of the code says unfamiliar animals such as those from different farms should be kept separate. Vet Bas Schouten, who specialises in calf rearing issues, says the prob-

lem is the code has no teeth: “It needs some good legislation Trish Hosking but it’s not there.” He hears of problems such as Hosking’s every year and says the common practice of mixing calves at yards to produce lines of similar weight, sex and breed, regardless of origin, “is a total nonsense. You are mixing up every damn disease there is and increasing the risk severely.”

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

Schouten says he’s working with livestock firms to develop an assurance system for calf quality, a bit like Toyota’s Signature Class for second-hand models. The calves would be blood-tested and have to pass a minimum immunoglobulin standard, be healthy, and vet-checked before delivery to yards in vehicles suitably disinfected. “It would require some extra cost but hopefully that calf would attract an extra $10, $20 or $30.”

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Rural News // December 18, 2012

26 animal health

Limiting lamb losses starts now Coopers wrapped up its Partners in Productivity Roadshow with an event in Oamaru late last month. Andrew Swallow reports. WHILE MUCH of this season’s lamb crop is still in the paddock, thoughts should be turning to protecting next spring’s drop, say vets. The ideal timing for toxoplasmosis and campylobacter vaccinations is a month or two before the rams go out, explains MSD’s Jason Leslie. Avoiding abortion storms, typically causing 20-30% losses but up to 70% in extreme cases, is the main motivator for vaccinations but Leslie says many farmers who don’t vaccinate probably don’t realise the insidious losses their flocks may well be suffering due to the diseases, particularly campylobacter. “It’s only when you get it for the first time you get an abortion storm. That’s the easy scenario to diagnose, but on a lot of farms it’s just grumbling away in the background, dragging down scanning results and lambing percentages.” Losses occur throughout pregnancy, and after birth as lambs, if they make it that far, are weaker. Average response to vaccination is 5 to 6% more lambs tailed,

but can be 9% in high risk situations. “It’s a gut bacteria so anything that increases the risk of faecal-oral transmission increases the risk of a clinical outbreak: mob stocking in winter would be the main one.”

“One shot and then they’re protected for life.” Ewes’ immunity is reduced by pregnancy, and damp conditions allow the bacteria to persist on pasture for longer, hence why risk rises in winter. Aborted material from infected ewes also carries the bacteria. “Seagulls are a factor in moving infection from property to property.” A high number of wet dries and late lambing ewes is often a tell-tale sign that there’s an undiagnosed campylobacter problem, he adds. Two shots are needed to protect previously unvaccinated stock from

the bacteria, and they need to be given four to six weeks apart. If you put the ram out at the start of April, that means ewes; hoggets or ewe lambs need their first shot by the start of February to allow time for the second to be administered well before mating. Ewes previously protected by CampyVax4 vaccine only need a booster, but again that should be given a minimum of four weeks before joining. “So that the immune system can respond to the vaccine and no detrimental effect ovarian activity.” Studies have shown campylobacter is present on 88% of New Zealand sheep farms yet only about half vaccinate. Awareness of the risk from toxoplasmosis appears greater, with 76% of South Island farms vaccinating, but still only 63% in the North. That’s despite the causative protozoa, Toxoplasma gondii, being endemic on New Zealand farms. “We have seven years’ recorded data and we’ve never found a property with-

MSD’s Jason Leslie.

out evidence of toxo,” notes Leslie’s colleague, Lynda Homer. Ewes only need vaccinating once for toxoplasmosis, ideally at least four weeks prior to their first mating. “One shot and then they’re protected for life.” While cost of vaccines varies clinic to clinic, it is modest compared to the response, she adds.

“We know that shot more than pays for itself in the first year and you get protection of your ewes for every year after that.” Both vaccines are prescription only and vet advice is required. The toxoplasmosis vaccine is a live vaccine so it is particularly important it is stored and prepared according to instruction to ensure efficacy, adds Leslie.

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Rural News // december 18, 2012

machinery & products 27

Fieldays and MBIE help with award win Barry Funnell

GARET H G I LLATT

A NEW Zealand company’s ‘revolutionary’ brushcutter blade that won a 2011 product-of-the-year award from the Australian Outdoor Power Equipment Association got its start chiefly through National Field Days and with crucial help from the Ministry of Business, Innovation and Employment. Airecut Company Ltd won the award for its Airecut blade, a self-sharpening and self-clearing brushcutter tri-blade. Notable for its aerofoil twist and reverse bevel, the blade has been in development since 2005 and marketed since June 2009. Though set up only three years ago, the company has this year sold at least 100,000 units in 40 countries through major distributors, says director Barry Funnell, who developed the blade. The 2011 award for ancillary product of the year from the Australian Outdoor Power Equipment Association is important not least because the association represents the majority of Australia’s medium and large outdoor power-product manufacturers. The Airecut Tri-cut blades won the prize in competition with a Kohler

Comander Pro engine, a Stihl fuel stabiliser and a Silvan diesel transfer tank, amongst other entrants. Funnell says none of this would have been possible without his product’s publicity at National Fieldays, gained when he launched it there in the innovations contest. “We would not have launched internationally if hadn’t been for Fieldays,” he told Rural News. “New Zealanders don’t appreciate the value of Fieldays. It’s at an international [event] that attracts international visitors. It’s great if you’ve got things to launch.” Funnell met Mowac Coporation Ltd manager John Lahman owner at the Fieldays, and noted Lahman’s surprise at the number of people ordering the blade. “He couldn’t believe how many people were buying the blade. We had four people going flat out taking money and dealing with eftpos. He was so staggered… that he

asked if he could be the national distributor.” Airecut is now distributed by Mowac, JakMax and PMD International Co. Also, Funnell says his company would not have achieved what it has without the help of the Ministry of Business, Innovation and Employment, which he and associates approached four years ago to apply for an R&D grant. They have received four grants, including one for patent research. Business connections and other resources were also helpful. The biggest boost was to the company’s credibility, Funnell says. “Mower manufacturers in New Zealand weren’t interested in what we had to offer; launching anything new they tend to be conservative but with the ministry [helping] bankroll us it gives credibility.” The blade is said to be a big hit in lifestyle property and rural markets,

which account for 80-90% of sales. “So far the biggest market has been North America, and the secondbiggest Europe,” Funnell

says. “A recently launched two-tip blade sells well in South America, the Pacific Islands and Asia. We expect sales to double next year.”

in brief Hover-mower launch soon AN OSH-COMPLIANT hovering lawnmower is on the cards for National Fieldays, says Airecut inventor and director Barry Funnell. His company’s self-sharpening blades will be the centerpiece of the petrol-powered mower. The mower uses the aerodynamic capabilities of the Airecut tri-blade to achieve lift. Prototypes are said to be working well, Funnell told Rural News. “I was showing it to a store during the tornado and it out-performed a big self-propelled mower.” www.airecut.com

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Productive machines on display THE LATEST in farm tools from manufacturers including Stihl, Honda, Skellerup and Gallagher were on view at a series of events put on by Animal Health firm MSD and its subsidiary Coopers. “The big thing is how quiet this is,” Gallagher territory manager Chris Richards told Rural News while demonstrating the firm’s three-way auto-drafter at one of the Partners in Productivity events (see page 26). “There’re no steel gates, just composite.” One man can put 400-500 sheep an hour through the machine which can be set up to record and draft to weight, or draft animals with electronic identification (EID) tags into pre-programmed mobs as determined by the user. Having been on the market for a little over year, the drafters are “really gaining traction” in the market, typically on larger farms using EID to help boost productiv-

ity, says Richards. “I’ve sold ten in the last 12 months in Canterbury alone.” Skellerup was promoting its extension of the Redband range into workboots, with two guests at each event being drawn to win a free pair. Meanwhile, Honda had its latest farm bikes, quads and MUV on display. In the quads, Blue Wing Honda’s Paul Stewart predicts the TRX500 will be “the next Big Red 300”. “It’s the strongest seller in our fleet and very low cost to run.” Power-steering is proving a boon, users finding a day’s work on the quad much easier on the arms, with no kick-back. Stewart says the 750cc MUV is the only such vehicle on the market with a true cartype torque converter transmission, meaning the side-by-side off-roader has engine breaking. “It’s the difference between us and the other brands. The rest are all v-belts.”

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Rural News // December 18, 2012

28 machinery & products

Gear update speeds contractor’s baling rounds CANTERBURY CONTRACTOR Neil Baxter’s new Lely Splendimo trailed mower and Welger variable baler/wrapper combination have sped up his baling operation, the supplier says. Neil Baxter Contracting operates from the family home at Sheffield – 25 years in the business, mostly baleage, baling hay and straw, and cultivation. New to the brand until one year ago, they bought their Splendimo 550P disc mower and Welger RPC 445 Tornado baler/wrapper combi after seeing an advertisement in a British magazine. “I inquired about whether they had them here,” Baxter says. “I liked the simplicity of it.

Though it is 5.5m wide, Neil Baxter says his Splendimo mower is very manoeuvrable.

It was a good wide mower but not at a wide price.” The lightweight Splendimo 550P trailed mower has a 5.5m working width and can mow on both sides of the tractor. Baxter pulls the mower with a 160hp tractor, but

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says it doesn’t require full power. It suits a light tractor, giving “perfect results under pretty much all conditions,” Lely says. The Splendimo 550P has a unique frame in which two 2.8m cutter bars are suspended in a

mutually offset position. The two cutter bars can move independently of one another, enabling the mower to closely follow ground contours. A large overlap between the cutter bars allows even awkward plots to be mown

efficiently. Baxter says the Splendimo 550P is simple to operate and easy to get on and off the tractor. “Mechanically it’s been faultless, and it’s easy for new people to operate. It does a great job at mowing and for a big mower it’s manoeuvrable in small paddocks and around water troughs. “It has a narrow 2.6m transport width, which is great…. It’s also very gentle on itself; some mowers self-destruct.” Baxter’s Welger RPC 445 Tornado baler/wrapper is said to be the first fully variable baler/wrapper combination on the market, and it has an automatic wrapping system. Before buying the Tor-

nado, Baxter was running a baler-wrapper combination but wanted to go to the variable-chamber baler to avoid having to switch balers for hay and baleage. “The variable chamber allows us to go from baleage to hay and straw and back to baleage just with the push of a button. That was the main reason we bought it. It allowed us to drop one baler out of our fleet and has saved us a lot of time.” The Tornado produce bales of different diameters. The same flexibility is available in the wrapping system. It is the first baler/ wrapper that meets this full set of requirements, Lely says. It is fast and automatically adjusts the

entire wrapping process to the bale diameter. Baxter points to its “unbelievable capacity”. “It’s done about 14,000 bales in the past year. It’s compact, it’s easy to manoeuvre and it’s relatively easy to operate once you get your head around the computer system.” The baler carries enough plastic film for a full day’s work and is low maintenance. “It has a good pick up and a really good rotor and flexi floor under the rotor, which makes blockages almost unheard of. If they do occur they’re easily cleared by dropping the floor,” says Neil. Tel. 07 850 4050 www.lely.com.

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Rural News // december 18, 2012

machinery & products 29

Turning scrub into productive land n e i l k e at i n g

GETTING TO the roots of unwanted vegetation: that understates of the huge power of mulchers to turn ‘scrub’ into productive land, says Farmgard. This company’s Italian-made Berti mulchers have for at least 20 years taken to matagouri, gorse, tussock, broom, rushes, thistles, crop residues and – for those farming in the Far North – kikuyu grass. The result is better pasture and/or ‘waste’ land brought into production, Farmgard says. “The Berti mulcher leaves nothing standing in its way, and if a few stones get involved, no worries.” “They top pasture at high speed leaving a fine mulch and no build-up of windrows. Low-producing grasses such as brown top and cocksfoot are eliminated to allow highproducing grass to rejuvenate. Gorse and scrub are chopped in one pass.” The company quotes Nick Seddon, Kaikoura, as saying the mulching has proved more effective than spraying and much cheaper during 10 years using a Berti to clear 100ha of gorse-covered rolling hills. He thought about

spraying but decided mulching would more likely keep him ahead of regrowth. The result: higher production and better pastures for sheep and cattle. “We’ve got the pasture back. The gorse is still there and the grass grows up through the gorse once it’s been mulched, so it’s good cattle fodder as opposed to having ninefoot-high gorse bushes everywhere. Now it’s just a repeat every year to keep it mowed and in check.” In Northland, dairy farmer Murray Jagger, chairman of the Kikuyu Action Group, has worked this grass for 20 years, but recently discovering highspeed mulching as a good way to make the best of it. “Five years ago we got a small Berti model and now have moved on to a 2m wide Berti TBM super mulcher.” Jagger says kikuyu severely tests machines because of the big volume of material being shifted and its fibrous nature, especially in the autumn when it loads up. But the Berti takes it, he says. Canterbury farmer Bill Wilson tops paddocks on stony ground using a Berti TSB 300. “I can use

it for topping paddocks and stones don’t affect it as they do an ordinary mower: they don’t get thrown against the tractor. And it mulches the weeds very well. “We had a paddock of horehound and I used it on that amongst stones. It’s done a fantastic job.” Northland contractor

Don Lilly, of Kaitaia, sees the Berti mulchers as the most robust he’s seen, and robust and easy to operate. “As long as you keep them well maintained and greased they just go and go. We can cover a hectare an hour topping in a reasonable shaped paddock.” Farmgard claims the mulchers increase produc-

tion in a number of ways: “They eliminate dead grass at the base of sward that can stunt regrowth, and prevent weeds reseeding, which in turn can reduce ryegrass staggers and prevent spring pasture deterioration. Tel. 09 275 5555 or 03 437 9000 www.farmgard.co.nz

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Made to perform DESIGN AND BUILD features include: Heavy RHS A frame and double-row self-aligning bearings on a 60mm stub shaft. The 2300rpm is said to be the only rotor on the market with dropforged flail lugs for added strength and durability. Bearings are embedded in the rotor for maximum protection from moisture and damage by, for example, wire. Double skin in the mulching chamber makes for best rigidity and protects the outer skin. Fully adjustable tailgate, pre-chamber that creates a venturi effect for more effective cutting, and longer skids than any other mulcher – tracks ground contours well.

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Rural News // December 18, 2012

30 motoring / rural trader Living above the crowd NEIL KEATI N G

A sedan for all conditions A da m F r i c k e r

THE SUBARU Legacy X could be seen as the answer to a question nobody was asking: a high-riding all-wheeldrive (AWD) sedan. However, Subaru NZ is convinced there is a buyer who needs AWD and ground clearance, but, perhaps for prestige reasons, wants to be seen in a sedan rather than a wagon. Cue the Legacy X, essentially a sedan version of the Outback 3.6; as such it is basically a very good car, with the Outback’s mix of handling, ride and performance. Featuring a 5-speed automatic transmission with manual mode, Subaru Intelligent Drive (SI-DRIVE) and push-start ignition with smart key, its performance is underpinned by a 3.6L DOHC Boxer engine that produces 191kW of power. It is a thirstier engine than the 2.5L four-cylinder boxer, and doesn’t come with the fuel-saving CVT gearbox either, but relative to the other

big-six sedans prospective buyers of the X might currently be driving, it is acceptable. On country roads and farm races, the extra ground clearance of 200mm keeps the underbelly clear of most rocks and ridges, although there’s a limit – it is not a true off-roader. Its on-road performance is true to the brand though, the car grips well and is fun to drive. It is also well equipped. Inside, you’ll find leather seats, electric sunroof, an eight-way power seat for driver and front passenger, Bluetooth wireless technology, dualzone climate control air-conditioning, rain sensing wipers and dusk sensing headlights and a premium 10-speaker McIntosh entertainment system with built-in satellite navigation and single CD/DVD player. Safety is also taken care of: symmetrical AWD and vehicle dynamics control have helped the Subaru Legacy 3.6X sedan achieve the maximum 5-star safety rating by

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ANCAP – the highest possible occupant safety rating. It also has Subaru’s new “driver assist system” called EyeSight, which uses three-dimensional images captured by two cameras mounted at the top of the front windscreen that act as a second pair of eyes that monitors the road ahead and recognises potentially dangerous driving situations. The first time you let the car brake by itself to avoid clonking the car in front, you’ll have your foot hovering over the brake pedal, just in case, but you quickly learn to trust the system. It works well and if every car had a similar system there’d be no more nose-to-tail accidents. The only caveat is that because the system uses cameras not sonar, poor visibility could potentially reduce its effectiveness. Cost is $67,990. Not cheap, but it’s a good car and comes loaded with technology. Time will tell how many buyers were looking for such a car, but just didn’t know it yet.

THIS MUST be the ‘holy grail’ story of New Zealand outdoors life and experience: the South Island high country shepherd, his dogs and horses. Of all the New Zealand stuff that’s now history (foreign wars aside), high country Merino mustering takes the blue ribbon. That’s not to belittle the achievements of other pioneers or hard-doers; but this country is so vast, high and unforgiving of error. South Coast Productions’ new DVD The Snowline Was Their Boundary recounts the lives and times of men before 4WDs, air-beds, “flash” sleeping bags and other modern paraphernalia: “Horses took in your tucker and swag; you dug a bit of a hole for your hip – no mattress or groundsheet – and ate chops for breakfast,” said one Merino mustering veteran, filmed in his old-age. He recalled returning to camp to find pigs in his bed, and the buggers rooting around there the next day hoping for more of the same. The high country shepherd’s challenge arises from the nature of the Merino sheep: “There was no place they wouldn’t go.” So with boots at £2 10 shillings a pair – their wage was £3 9 shillings – a swag and dogs,

these men took to the rivers, scree and tussock slopes, and snowy tops, after days going in over the sandfly flats. Their only equipment a stout five-foot stick worn smooth – indispensible for crossings and traversing scree and snow. The packhorses and dogs are the silent heroes. “Few musterers envied the ‘packies’. They had to be reasonably good cooks and know their horses.” One packie describes “having a Park Drive to settle my nerves” before tiptoeing, with five laden horses, along a 2-foot-wide track above a 200-foot drop. “If one horse went over he might spook the others.” Then he was up at 2am – the fire pre-set for lighting – to cook a breakfast of mutton chops, the bones so large they could “play hockey” with them the next night. Shepherds were each allowed five dogs. “You didn’t need to see them working. On a bluff a dog will find the sheep, find them a track, then lead them out. You can’t put that into a dog; that’s brains. “Sometimes they’d have no pads left on their paws, just blood stuck to the rocks. But they’d be off when you told them.” South Coast Productions Tel. 03 234 8109; fax 0800 448683 www.videosouth.com

You don’t want to die LIVE-DEER CAPTURE by helicopter in the North Island Urewera bush makes for an intense movie thrill. South Coast Productions does full justice to the 1970s pioneers of this industry, flying choppers with crewmen who fired the nets and recovered the deer. Leading this tuition was Reg Ellwood, a former military flyer, who made sure these young men learned to fly. Only

those with verified skills – and that indefinable ‘something’ at the controls – were let loose, first in Peter Bradley’s Murupara operation. They flew Hughes 300, and later Hughes 500, machines. “They had to be able to fly tight and backwards,” Ellwood says. “Everything had to be right…. In the bush you learn to fly or come unstuck.”

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Two Great DVDs for Xmas Snowline Was Their Boundary

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

        

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

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



0800 766 737

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

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

  



Culvert Pipes

ALL PRICES INCLUDE G.S.T.

PER 10

“It’s p r good m etty ate!”

SAMPLE PHOTO WITH EXTRA’S 525

• Lightweight, easy to install • Made from polyethylene

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

  

  

www.painfreeday.co.nz Phone

0800 625 826

for your nearest stockist

Joiners supplied FREE with culvert pipes

Now you

have a choice

for a low dose combination drench

398* per 20Litres $

• • • • • •

Ravensdown product Oxfendazole (45.3g/L) and levamisole (80g/L) 1mL/10kg dose rate (cattle and sheep) Mineralised (0.9g/L Se, 0.2g/L Co, 0.6g/L Zn, 2.0g/L Cu, 0.9g/L I) Meat WHP; cattle and sheep 10 days Milk WHP; cattle and sheep 35 days

*Direct debit excluding GST

• • • • • •

Competitor product Oxfendazole (45.3g/L) and levamisole (80g/L) 1mL/10kg dose rate (cattle and sheep) Mineralised (1.0g/L Se, 0.4g/L Co, 1.2g/L Zn) Meat WHP; cattle and sheep 10 days Milk WHP; cattle 6 days, sheep 35 days

Scanda® ACVM Registration No: A7368. ®Registered trademark. Schering-Plough Animal Health Limited, 33 Whakatiki Street, Upper Hutt. Phone: 0800 800 543. SCA-103-2012

To order, call 0800 100 123.