Rural News 22 Jan 2013

management

farm safety

They work for 365 days a year for nothing - the ultimate work force. page 26

A spate of accidents has put the issue of quad bike safety back on the agenda. page 6

Rural NEWS to all farmers, for all farmers

january 22, 2013: Issue 530

Lockwood Smith is off to London to take up a new role.

pages 10-11

www.ruralnews.co.nz

MPI takes leadership role p e te r bu r k e peterb@ruralnews.co.nz

The Ministry for Primary Industry is planning to raise the public profile of the primary sector this year and take on a wider promotional role than it’s done in the past.

MPI Director General Wayne McNee told Rural News that this is part of move by the Ministry to take a ‘leadership’ role in the primary sector from now on.

As part of this, MPI may make consider making submissions on regional council plans – a matter that farming leaders have been asking it to do for some time.

McNee says some years ago MAF, as it was then, made a conscious decision not to submit on plans. The change of heart appears to be linked to the ructions that have arisen from Horizons Regional Council, which has drawn much criticism for its failure to accurately estimate the negative economic costs on farming of its controversial One Plan.

Work commissioned by MPI showed the One Plan would have significant negative impacts on farming on the region – a matter that Horizons still disputes.

McNee says the Landcare report on the Horizons situation was commissioned before the Environment Court made its decision. He says it outlined a number of scenarios and one the Minister for Primary Industry David Carter highlighted as closest to the court decision.

“We have worked this through with ministers and other agencies and on a case-by-case basis if we consider it necessary, we will look to submit on the regional planning process,” McNee adds.

He says the decision to submit on council plans is just one example of the new ‘leadership’ role MPI intends to take this year.

“It’s not advocacy, but it is about us fronting the issues publicly in the media and within government circles.

It’s important for us not to call it advocacy because DOC has a legislative role for this and there is a lot of criticism of that role. Within government you’ve got to be seen to present a ‘fact or evidenced-based argument’, not just wave the flag and say ‘primary industries, primary industries’. You’ve got to front up to Treasury and ministers with the evidence,” he says.

McNee believes MPI has a major role to play in helping the government achieve its growth targets.

Well-earned recognition Horowhenua commercial vegetable grower George Sue was one of only a handful of people from the primary sector to feature in the 2013 New Year’s Honours list. Seventy two year-old Sue, a second generation commercial grower, earned his Queens Service Medal (QSM) for his work as both an industry leader in the commercial growing sector, as well as his contribution to a wide range of community organisations. For more on George Sue and other rural/agribusiness sector awardees see page 4.

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Sheep farmers show the way Former Agriculture Minister and Speaker of the House, Lockwood Smith says farmers have to be mindful of the need to farm sustainably and not damage the environment. But he says that has to be done in a scientific way.

He believes too much thinking nowadays is not based sufficiently on sound science.

“Sadly over the years, it’s my view, that some of the fundamentals of scientific methodology have not been inculcated sufficiently into students. I used to teach scientific method at university, and agricultural science is one of the great scientific traditions that has a very, strong basis in sound scientific methodology. Other fields of scientific endeavor, to me, don’t have quite that sound basis in scientific methodology.

Smith is full of praise for the sheep industry, which over the years has become very efficient. He points to the huge increase in lambing percentages and notes that not so long ago getting 100% was good, whereas today the good farms are up over 150%.

“If the rest of the economy had achieved what sheep farmers have achieved New Zealand would be one of the wealthiest countries in the world.”

• Smith profile - pgs 10-11, 14

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Rural News // january 22, 2013

news 3 issue 530

www.ruralnews.co.nz

News ������������������������������ 1-16 World ������������������������������ 17 Agribusiness ������������ 18-19 Markets �������������������� 20-21 Hound, Edna ������������������� 22 Contacts ������������������������� 22 Opinion ����������������������� 23-24 Management ����������� 25-28 Animal Health �������� 29-32 Machinery and Products ������������������ 33-37 Rural Trader ���������� 38-39 Head Office Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 Postal Address PO Box 3855, Shortland Street, Auckland 1140 Published by: Rural News Group

Double whammy for sheep farmers SUDES H KISSUN sudeshk@ruralnews.co.nz

UNFAVOURBALE WEATHER is piling further pressure on sheep farmers grappling with low lamb prices.

Dry conditions in parts of the country means lambs are being killed at lighter weights. At the same time, farmers are receiving $50 less per head compared to last year.

Beef and Lamb New Zealand chairman Mike Petersen says farmers are being forced to offload stock at soft prices.

Hawke’s Bay, Wairarapa and parts of Canterbury are experiencing extreme dry conditions after missing out on spring rain.

The double whammy of low prices and poor weather comes after two very good years for New Zealand sheep farmers. Petersen says sheep farmers are in generally good shape financially, but they won’t be able to sustain lower prices for much longer.

“If lamb prices remain at this level, some sheep farmers will be looking to exit the industry,” he told Rural News.

The sheep industry’s woes stem from the financial crisis gripping Europe,

But Petersen says lamb exports out hearing all the procesNew Zealand’s number one sors at the moment of New Zealand cannot be blamed for market for sheepmeat in talking that way and the low prices. volume and value. Softening “We are still talking about our third the eastern states as EU markets have forced rediwell. New Zealand, who lowest lamb export on record. It’s the recting of lamb from those have another 2 million subdued demand in Europe that is markets onto the strong lambs to process this affecting prices.’

Middle East market and BLNZ has forecast a 2012-13 lamb season, which is their other markets around the big lamb kill, doesn’t export of 20.5 million, the third lowest world, further eroding prices. commence until pretty on record. It has predicted $4.80/kg Petersen believes the level much February and price for peak season lamb. Petersen of volatility in pricing for goes through until May says this is not enough for a viable sheep lamb does not provide suffi- Mike Petersen and there’s going to be industry. cient confidence for farmers He says it’s hard to predict how lamb some pressure on there. to invest in the future of the industry.

“For the next four to five months prices will fare over the coming months.

“My pick is that we will see a further reduction in capital stock numbers and I’d have to say that the international this puts added pressure on the pro- market isn’t in a strong position at all. “ @rural_news facebook.com/ruralnews curement situation for future years.”

One of Australia’s largest exporters of lamb says with plenty of cheap product on the international market, producers can’t expect returns to increase AUSTRALIAN LAMB exports, last year, decreased 6% to 12,128 tonnes. for at least the next four to five months.

The tough economic environment within the EU, particularly the UK, Western Australian Meat Marketing Australia’s largest market for sheepmeat within the EU, impacted on AustraCo-operative Limited (WAMMCO) lian exports, as consumers continued to look for cheaper protein options, says chief executive Coll MacRury says Meat and Livestock Australia. with consumers switching to cheaper Overall UK sheepmeat imports in 2012 (January to October) were down sources of protein, an oversupply of 9%, totalling 61,919 tonnes, with imports from both Australian and New lamb will be a problem.

Zealand back, 23% and 5% respectively - illustrating to the tough climate for “There’s plenty of product, cheap imported sheepmeat in the UK throughout 2012, MLA says. product on the market and you’re just

Oz exports tumble

Dairy prices tracking north

Printed by: PMP Print Contacts Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 80,767 as at 30.06.2012

GLOBAL DAIRY prices are continuing to inch higher.

However, it doesn’t mean a higher payout for farmers.

Last week’s Fonterra GlobalDairyTrade (GDT) auction recorded its third straight lift in prices. The GDT trade weighted index rose 1.1% last week following a 2% lift on January 2.

More importantly, prices for whole milk powder, which typically accounts for more than half the product sold, last week rose 2.8% to US$3288 per tonne.

BNZ economist Doug Steel says the small rises continue the trend of the last few months.

“This fits with our view that in 2013 prices will continue to nudge higher,” he told Rural News.

But while prices rise, the New Zealand dollar is showing little sign of easing. Last week it was hovering around the US84c mark.

Steel believes Fonterra has built in some dairy price increase in its 2012-13 forecast payout. The future contracts offered in last week’s GDT cover the second half of 2013, so the price increases will not impact the current season, which ends May 31.

“Unless dairy prices lurch higher, the current payout stands as Fonterra will have some increase built into it.”

Both supply and demand factors are encouraging the positive trend, he says. The world economy is

recovering with the US pulling back from the ‘fiscal cliff’ and concerns about EU economy are not as strong as expected. However, he says the EU is not out of the woods yet.

On the supply side, the drought in the US is worsening, impacting milk production. Higher grain prices are also pushing up feed prices for northern hemisphere farmers. This should tighten the milk market, he says.

Steel says milk production in New Zealand remains strong despite earlier reservations about weather.

“The risk of El Nino around six months ago has dissipated,” he says. – Sudesh Kissun

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Rural News // january 22, 2013

4 news

Outstanding in Kiwifruit stalwart gains recognition their fields p e t e r bu r k e peterb@ruralnews.co.nz

Well-known Horowhenua – now retired – commercial vegetable grower George Sue was one of a handful of people from the primary sector to feature in the New Year’s Honours.

Seventy two year-old Sue is a second generation commercial grower who was born in Otaki, but has farmed on his present property on the outskirts of Levin for more than 40 years. He and his brother grew potatoes, cabbage, cauliflower, pumpkins and carrots and sold their produce at markets in Wellington.

For his work as both an industry leader in the commercial growing sector, and his contribution to a wide range of community organisations, that earned Sue his Queens Service Medal (QSM).

He’s been involved in Rotary, Jaycees as well as the setting up of a kindergarten in the town. In his days with Jaycees, Sue was involved in a national milk biscuit programme designed to help undernourished children overseas.

George Sue served as secretary of the Chinese Growers Association and was the founding chairman of the Horow-

henua Growers Association, which later became the Tararua Growers Association. He has also served on the trust that manages libraries in the Horowhenua District and the Children’s Board – which seeks to help young people who get into trouble with the law.

Others from the primary sector to feature in the New Year’s honours were Dr Philip Yates who was made an Officer of the New Zealand Order of Merit for his contribution to agribusiness.

Also awarded the ONZM was Emeritus Professor Roger Field for his contribution to education and land based industries. Professor Field was, until recently, the Vice Chancellor at Lincoln University and has had a long and distinguished career in agricultural science.

Three people received the MNZM. John Hartnell of Christchurch for his contribution to the bee industry and his involvement in the Farmy Army, Ian Corney of Taumarunui for his contribution to agriculture – most notably in the development of NAIT and Peter Ombler for his services to the kiwifruit industry. @rural_news facebook.com/ruralnews

pam tipa pamelat@ruralnews.co.nz

A grower for 30 years, Peter Ombler has been awarded the New Zealand Order of Merit for services to the kiwifruit industry – but those services are not over yet.

A director at Kiwifruit Vine Health (KVH), Ombler will soon take over as chairman, with Peter McBride moving on to become chairman of the Zespri board.

Ombler headed NZ Kiwifruit Growers Incorporated (NZKGI) for three and a half years, was on the Zespri Research and Development Board prior to that and has served in numerous other roles.

But Ombler says he could list up to 40 others who work voluntarily in the industry who deserve recognition.

“It just happens that I

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of managing our got it. A lot of people way through work on a volunthat crisis tary basis and and I was their support fairly enabled me heavily to deliver on involved things I have in that”. done.”

As a Ombler grower says there were near Te two big issues Puke, when he was Ombler chairman has NZKGI (up Peter Ombler handsuntil Decemon ber 2011) – the challenge to the single experience with Psa. He desk structure from Turn- has a six and a half ha canopy of kiwifruit, with ers and Growers and the about two thirds green emergence of Psa. The and a third gold.

T&G challenge was ongo“We were realistic and ing and “a big deal” at the chopped out our 16A and time. moved into Gold 3 and, “We are in a much like everyone else, we are better space with Turndoing our best and hoping ers and Growers now ….

We are now able to collab- things work out ok.”

Part of his green orate instead of trying to orchard also has signs of beat each other up.”

Psa, but he hopes it won’t When Psa first hit he affect production. says there was “the ini“We don’t really know tial shock and the issue

how this plays out on green either over time… but my sense of it is, in a well-managed situation in a good location, it is doable in a Psa environment.

“In Italy, where they are a couple of years ahead of us, indications are you can grow green in a Psa environment.”

The full picture in New Zealand still has to emerge “but my sense of it is that the genetics of Green are robust enough to tolerate it in a normal year with good management and a reasonable location.”

Omber was an organic grower, then had parallel production with Gold grown conventionally and green organically.

“But when Psa came along we felt there was enough to deal with without having to manage the organic side. I didn’t want anything cluttering my thinking.”

Psa ‘won’t be the last disease’ Psa won’t be the only major threat which emerges to the kiwifruit industry, Ombler says.

“But had we had a body like Kiwifruit Vine Health prior to Psa, who knows? We might have had our hand on the pulse a bit more and we may have been in a different position now,” says Ombler.

He says Psa won’t be the last disease or pest to emerge because “there is continuous risk and the obvious one if fruit fly”.

“Now we have a body whose only responsibility is to manage the risk around disease and pest, hopefully KVH can play a role in at least decreasing the risk of another incur-

sion of some sort. You can’t say you will eliminate … but hopefully we can ensure we are a bit more secure than we have been in the past.”

However, Psa management will remain KVH’s core function.

“We will not get rid of it – so we will have to manage the spread and have enough effect to make sure there aren’t abandoned orchards creating problems with the spread.

“We have a key role in the R&D space. It is Zespri’s programme, but KVH has a very keen interest in the programme because that ultimately is where the answers will come from… and also people trying different things in their orchards.”

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Rural News // january 22, 2013

news 5

Overseer under scrutiny A N D REW SWA LLOW andrews@ruralnews.co.nz

AN INDEPENDENT review panel says regulators and all users of the Overseer model must recognise its limitations.

The review was instigated by the Foundation of Arable Research in light of concerns the model, which is increasingly being adopted as a regulatory tool by regional councils, might not be suitable for monitoring cropping farms’ nutrient losses.

The review report, released today [January 22], concludes Overseer is the best tool currently available for estimating long-term, average nitrate leaching

losses but further work on cropping predictions is needed.

FAR’s director of research development, Roger Williams, says there are two main problems: the practicalities of inputting cropping data; and confidence in the accuracy of the modelling.

“The interface for cropping is not yet very well developed,” he told Rural News. “It’s a very onerous task to enter all the data you need for a cropping farm. That may be to do with the programming, or it may be to do with the protocols.”

Among 11 recommendations made, the review says an overhaul of the way

users enter crop data is needed. Williams suggests paddock data should build year on year, rather than having to enter the history every season. Offering pre-populated arable rotations might be another option.

With regards to confidence in the model, further validation of model results against real-life situations and other crop models is needed. “There are simplifications built into Overseer that you don’t see in other crop models,” he says.

Nutrient modelling cropping in New Zealand is complicated by the diverse rotations practiced. Even without those, annual cropping is more dif-

ficult to model than permanent pasture as cultivation introduces another major variable, and different crops have different rooting characteristics, nutrient demands, and fertiliser regimes.

“It’s very different to the pastoral system Overseer was designed for,” says Williams.

Another major recommendation is an increase in funding to develop the crop model and other aspects of Overseer. Williams says Overseer’s owners, AgResearch, MPI, and the Fertiliser Manufacturers’ Association, should “principally” be responsible for that funding, but FAR would consider some joint-funding if necessary to ensure

pamelat@ruralnews.co.nz

PorkNZ will next month launch television advertising promoting new easy-cook cuts following a levy boost last year.

New Zealand pork producers are now world leaders in animal welfare standards and PorkNZ chairman Ian Carter says they also want to get that message across.

Pork NZ released its annual report last week promising a new beginning with the refocused marketing campaign and a

new business strategy.

The kill for October to December was down by 10,000, or about 5%, on the previous year as lower prices prompted some to leave the industry.

Carter is confident a recent slight lift in kill and the new marketing thrust will see reasonable returns for producers this year. The message to consumers will not solely be around the product but the industry also, he says.

“The focus is to further education the consumers and general public about what the pork industry is about, that we are inno-

vative and forward thinking, and the end product is environmentally friendly and the most consumed meat in the world. So we want to be seen in that light in a more proactive form than we have in the past,” he told Rural News.

PorkNZ held a training programme for butchers nationwide last year to produce new convenient cuts for time-constrained consumers, he says. “As an industry we recognise we haven’t done that well in the past and we need to get those five-day (working week) meals when consumers have a limited

amount of time,” he says.

Last year also they targeted “passionate foodies” but now want to reach the general consumer with the television campaign and boosted newspaper and magazine advertising.

PorkNZ is also pushing for all segments of the supply chain to add value. “As an industry we are competing with 45% imported product in the domestic market and we still have a reasonable a reasonably traditional sales structure with farmer through to wholesaler, retailer to consumer.

“All those people have

to be adding value rather than creating cost and just being a middle man.”

Another focus will be to get the message across to Government that “regulations are put in place which aren’t necessarily consistently applied against our production base compared to the imported product” and that adds cost to our primary industry.

“We are among world leaders now in animal welfare at a production base – that needs to be brought home.” @rural_news facebook.com/ruralnews

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cropping work is done.

“We’re certainly not closing the door to that option.”

The review notes the remarkable development of the model over the past decade and the ever increasing demands on its owners to manage strategic direction, resourcing, and risks the model presents. Consequently a review of its governance, as well as an increase in the team dedicated to it, is recommended.

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Rural News // january 22, 2013

6 news

Quad bike safety issues raised – again! p e te r bu r k e peterb@ruralnews.co.nz

There’s a big difference between farmers being experienced with quad bikes and being competent to use them across a wide range of tasks according to Ona de Rooy, general manage health and safety operations at the Ministry of Business Innovation and Employment (MIBE).

“There is often the temptation to work longer hours and fatigue and stress all play a part in accidents.”

She told Rural News that quad bikes are inherently dangerous vehicles and there are challenges in getting people to use them safely. Her comments come following a spate of

quad bike accidents both on farm and recreationally over the Christmas holiday period.

“Over summer there are longer daylight hours and a lot of work done

on farms. There is often the temptation to work longer hours and fatigue and stress all play a part in accidents. Things such as forgetting to check the quad bike or making a simple mistake because they are really tired that can have long term consequences,” she says.

De Rooy says MIBE is involved in a number of initiatives to improve

ACC costs In 2012, there were 761 claims costing $1.4 million for work-related accidents involving all ATV’s on farms. While there were almost twice as many accidents of a recreational nature; the actual cost of these accidents to ACC was about the same as those which occurred on farms.

In terms of age, the largest group involved in accidents involving all ATV use, both on farm and recreationally, was in the 15 to 24 age group (398).

But there was also a large number in the 45 to 54 age group (360)

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says farmers have mixed views on helmet use.

“Current quad bike helmets are heavy and sit quite high – especially when you have wet weather gear on.

Often you have to choose between having wet neck or back and wearing a helmet that doesn’t fit underneath a wet weather jacket,” she adds.

Ona de Rooy says in addition to its education programmes, MIBE’s health and safety inspectors are out on a road ensuring that farmers comply with the rules.

“Between July 2011 and December 2012, we issued a total of 653 notices or warnings.

“These were improvement notices and warning letters. If we re-visit a property and find that the workplace is still noncompliant then we would shift to an infringement process. This could mean a fine of between $100 and $3000 depending on the nature of the breach,” she says.

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farmers attitude to quad bike safety and there are some encouraging signs that farmers are starting to understand the risk and comply with safety steps.

She says the ministry is working with stakeholder groups to try and influence farmers to be more safety conscious. One of the areas of concern is the use of safety helmets.

“There are a lot of excuses for not wearing a helmet, but your life can change in a second. That’s the tragic impact of poor decisions and yes there is a strong culture of ‘it’s not going to happen to me’,” she says.

Federated Farmers Jeanette Maxwell says her organisation is doing much to promote the safe use of quad bikes on farm by encouraging farmers to draw up health and safety plans. She says many farmers have been using quad bikes for a very long time and know how to ride them. Maxwell acknowledges that accidents can occur in a split second, but

Rural News // january 22, 2013

news 7

TESTED

Water an MPI priority p e te r bu r k e peterb@ruralnews.co.nz

Water reforms and improved irrigation are top priorities for the MPI, according to its Director General, Wayne McNee. He says having a ‘stable supply’ of water makes a huge difference to the ability to farm whatever type of farming operation being undertaken.

McNee believes the ‘irrigation acceleration fund’ and the ‘water infrastructure fund’ are key tools to achieving better use of water.

But says even more important is the Resource Management Act reforms and the water reforms which are currently being undertaken. He says these are fundamental to enabling the primary sector to grow.

“At the moment councils are making a number of decisions around the country which potentially have significant impacts, not just on growth of our primary industries but on the existing operations of our farms. The government has signaled that it’s going to

be consulting on reforms this year and those reforms are going to be really important.”

McNee says MPI and the Ministry for the Environment (MfE ) have been working jointly on the water reforms and MPI have had ten staff working on a full time basis at MfE in the so-called ‘water room’ at MfE. “We are also putting resources into economic analysis to support the reforms and have commissioned some external work, as well as having done some ourselves. This is designed to help ministers make decisions by the middle of the year when they come to look at the reform outcomes. Ministers say before they make decisions they want to understand the real impacts that are going to be on the rural economy.”

McNee says they need to get some work done to look what the on-farm impacts of the reforms are and also what the longer term impacts are on the environment.

“So it’s a thorough economic analysis looking at the short, medium and long term impact on

farming and of environmental change. The short term pieces of work we have done so far have been focused on the impacts on-farm and in particular catchments.”

McNee says MPI is already commissioning more information and working with councils to understand local issues. He says the objective is to provide them with data that will help in the decision-making process.

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Rural News // january 22, 2013

8 news

Protecting farmer interests sacrosanct – Read Blue Read p e te r bu r k e peterb@ruralnews.co.nz

Fonterra’s newest director, Blue Read says there is a lack of appreciation about the value of grass as the backbone

of New Zealand’s dairy industry.

He says, of late, it’s been too easy to procure PKE and maize silage.

Read believes some farmers tend to focus on production rather than

productivity and profitability – he says profit is what it’s all about. Despite this, the new Fonterra director believes New Zealand is still very competitive internationally in terms of production costs.

Read was the only new director elected to the Fonterra board, in a field of eleven candidates, at the end of last year. Two incumbents, John Wilson and Nicola Shadbolt were re-elected.

Read farms on the Taranaki coast near White Cliffs about 40 km north of New Plymouth. He and wife Shirley milk 220 cows once-a-day on their 225 acre block, which produces 61,500 kgMS.

The farm backs onto the rugged Taranaki coast and views are stunning. From the day they bought the property, Shirley and Blue embarked on an extensive planting programme and all the streams on the property are fenced and planted.

There is little doubt that Read’s involvement and achievements as chairman of the Fonterra Shareholders Council and his chairmanship of Cooperative Business New Zealand (formerly the Cooperatives Association) gave him a profile.

“It wasn’t a great ambition to seek a position on the Fonterra board, but when you talk to people you gain a realisation about the experience you have had. People said to me why would you not give it a go?

“My time on the Shareholders Council gave me the background and understanding of Fonterra. For me it’s always about looking forward and especially the importance of the cooperative in terms of protecting farmer interests. This is absolutely sacrosanct.”

Read says his role on the Shareholders Council meant that he’s played a role in dealing with some pretty contentious deci-

sion, such as TAF and the setting of the milk price.

He’s always been a supporter of TAF, but with ‘conditions’.

Compared with some of his fellow directors, Read is a small farmer – but that doesn’t bother him.

“The important thing in any organisation is diversity and the willingness to debate and argue to reach consensus and agreement.

“I think if I have got a skill; it is to be able to ‘black hat’ things. I look for problems and solutions for those problems and surely the job of the director is to be aware of and mitigate the risk.

“It’s also to be aware of the opportunities and to grasp them.

“The fact that we haven’t shifted from here and grown bigger doesn’t mean that I am not successful. When I look at the success I look at my involvement in Fonterra and the Shareholders Council.

“Maybe it hasn’t grown my personal fortune, but by god it’s helped our farmers to grow their fortunes. I take a more holistic view of success above and beyond the personal,” he says.

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

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Rural News // january 22, 2013

news 9

Oz 2012 beef exports set new record

Ahuwhenua Awards close soon Entries for this year’s Ahuwhenua Trophy for the top Maori sheep and beef farm close on January 28, but organisers say there is still time to enter this prestigious competition.

The trophy is competed for each year, but alternates between dairy and

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sheep and beef. This year it’s sheep and beef.

The first round of judging will take place in March and a public field day will be held on the properties of the finalists in late April and early May. The winner will be announced at a gala dinner in Hawkes Bay in early June.

AU CT IO

AUSTRALIAN BEEF shipments last year set a new record.

According to Meat and Livestock Australia (MLA), exports topped 963,799 tonnes – an increase of 2% on the previous year and just ahead of the previous record set in 2008 (957,482 tonnes).

MLA says while 2012 ended up as the largest volume year on record, the final result was largely in contrast to the very tough trading conditions for exporters throughout the year. The high Aussie dollar, weak consumer demand in Japan and Korea (especially for the first half of the year) and increased competition in many markets impacted export returns – especially for chilled beef.

However, there were also several high points for the trade, including historically high global prices for manufacturing beef, a 33% year-on-year increase in shipments to the US (224,007 tonnes), along with record shipments to China (32,905 tonnes, up 324%), Taiwan (38,281 tonnes, up 4%) and Singapore (14,087 tonnes, up 46%).

in brief

On the supply side during 2012, a surge in slaughter and beef production during the final three months of the year facilitated an increase in beef exports, assisted by lower cattle prices – largely due to the rapid drying off in seasonal conditions.

Illustrating the fast finish to the export year, this year had the highest December on record, at 86,229 tonnes – 5% higher year-on-year.

Despite contracting 10% year-on-year, to 308,537 tonnes, Japan easily remained Australia’s largest beef export market, taking 32% of all

beef exported. The weak Japanese economy, faltering consumer demand, the high dollar and increased competition from the US all combined to affect Australia’s trade throughout 2012.

While the US was the second largest market for the year, at 224,007 tonnes, the 33% year-onyear increase was off a very low 2011. After a very slow start to the year, Australian beef exports to

Korea finished the year at strong levels. Exports for the year totalled 125,957 tonnes – down 14% yearon-year, after being down as much as 32% after the first six months of the year.

The combination of increased Korean beef and pork production, competition from the US and a slowing Korean economy impacted demand for Australian beef throughout the year.

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Rural News // january 22, 2013

10 news Shortly Lockwood Smith puts his redbands into storage and leaves for London to take up the role of High Commissioner. In terms of the diplomatic service, London is the jewel in the crown – the most important and sought after post. Peter Burke talked to Smith just before it was announced that he was taking up his new role.

Dr Smith goes to London Of all the people over the past 50 years who have held this prestigious post arguably there’s never been a better qualified

person to do this than Dr ‘The Honorable’ Lockwood Smith.

As a politician, he’s held the key ministerial

portfolios of trade, agriculture, tourism, education, as well as Speaker of the House. He’s a qualified agricultural scientist with

a PhD in animal science.

He’s a successful farmer who’s developed his own unique strain of Belgian Blue cattle. He’s been an

international marketer with the Dairy Board – the forerunner to Fonterra.

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ward to a change of scene and the challenges that the post in London offers.

“Our relationship with Britain is hugely important, not just for the historical linkages which are obvious but Britain is a member of the European Union. Just because it’s no longer the fastest growing part of the world or the most rapidly growing area for trade we shouldn’t underestimate the importance of London. If you take the whole of Europe it’s one of the biggest developed economies in the world and it affects us hugely because if Europe were to turn to custard, that would affect China, Australia and ultimately

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New Zealand,” he says.

London itself holds much for Smith outside the ‘business part’ of his role. He describes it as one of the most ‘special cities’ in the world. Aside from the arts, music and culture there are other things that appeal.

But going to London does have a downside for this passionate farmer – his own farm at Ruawai in Northland. He’ll have a manager run his farm while he’s away; to keep going the ‘interesting genetics’ that he’s developed with the Belgian Blues. But as he points out, the chance to represent New Zealand in London is ‘a unique opportunity’.

4/11/11 10:44 AM

While Smith has enjoyed success as an agricultural scientist, academic, marketer, sportsman and singer, it’s his 28 years on the political stage that he’ll be best remembered for.

As agricultural minister he initiated the reform of the producers boards, as tourism minister he initiated the 100% pure brand and as education minister he was responsible for a range of reforms including the introduction of the early childhood curriculum and the first national curriculum, the qualifications framework, as well as the industry skills strategy.

From an agricultural point of view; it was his work as trade minister that stands out.

“I started the whole process that has led to the Trans Pacific Partnership. Originally my concept was called P Five involving the United States, Chile, Australia, Singapore and New Zealand.

“When I couldn’t get that off the ground in the late 90’s, we did a little trade deal with Singapore – the idea being to do a top level trade deal that we could bring others into and that’s exactly what’s happened.”

Smith’s other memorable moments were chairing the APEC Trade Ministers meeting and signing China up into the World Trade Organisation (WTO), which in turn led to China signing a Free Trade Agreement with New Zealand.

“They were hugely appreciative because no other country would sign them up,” he says.

Smith has performed well as the Speaker of the House – firm, tolerant and a man of change.

“We have changed question time and we have changed the way the house handles legislation.”

But after 28 years in parliament, Lockwood Smith admits there’s a limit on what he can change and it’s time to move on.

Rural News // january 22, 2013

news 11

Agriculture the backbone of career Agriculture has always been a part of Lockwood Smith’s life.

His early scrapbooks have pictures of Romney sheep and Angus cattle.

His father owned a Romney stud and the young Lockwood quickly played an active role in its management.

In 1960, his father set up an Angus stud and eleven year-old Lockwood took over the stud records.

“I knew every ewe in the stud flock and every cow in herd by sight. Even at a very early age my father would send me off to do all the buying and selling of rams. If someone came to buy a ram dad would say ‘don’t talk to me, talk to the young fella, he knows them all’. So I developed a genuine interest in livestock breeding.”

At the age of 15, Smith experienced his first real wrench in life when he left the farm to board at Auckland Grammar. He wasn’t to return to the farm for 20 years, while he pursued a career in agriculture off-farm.

The person that ultimately influenced Smith in his career choice was one Dr Campbell Percy McMeekin – one of New Zealand first world renowned agricultural scientists.

“I guess he inspired me to some

extent, with dad’s backing, to be not just a scientist, but an agricultural scientist. I went to Massey and did a B AgSci. At 22 I was appointed a junior lecturer at Massey.”

He then decided to do a master’s degree and his thesis was on the nutritive value of maize silage. It was some of the first scientific work done on this subject in New Zealand. While he was doing his masters, Smith met up with ruminant physiologist Dr Adrian Egan from Adelaide University. Ruminant psychology appealed to Smith and when he won a commonwealth scholarship and decided to go to Adelaide to do his PhD. “As well as doing my work in nitrogen metabolism in ruminants with Adrian Egan there was the added incentive to go there because the Dean at the music faculty had invited me to study with him.

“That was Donald Munro, who’s recognized as the father of New Zealand Opera Company. He had heard me sing

in Palmerston North and invited me to study with him so I enrolled in my PhD as a commonwealth scholar at the University of Adelaide. I also had my daily singing lessons with Donald Munro at the Elder conservatorium.”

At the same time, Smith found a passion for rowing and says his PhD took longer than it should largely because of this. He ended up rowing for both the

university and also the state of South Australia for two years.

While rowing and singing might have been distractions, Smith found doing the PhD hard. He says in those days students not only had to do the study, but build many of their own scientific instruments.

“Being locked away in a laboratory for weeks on end, late at night was not

my idea of a life, so it was while I was doing my PhD that one day I decided that I wanted to get into politics.”

In late 1979, Dr Lockwood Smith returned home to New Zealand with his mind set on a career in politics. The following year he joined the Dairy Board.

“Two of my mentors were John Parker and the late Alistair Betts. They were good operators and I learned a lot from them.”

The time at the Dairy Board was part of Smith’s strategy to get into parliament.

In 1984 he was elected the MP for Kaipara and when the electorate boundaries changed in 1996, he represented Rodney through until 2011. He has since been on the National Party list.

Once in parliament, Smith returned to the family farm and so began two new chapters in his life. (At this stage, the singing career was over because his base baritone voice was ‘wrecked’.) But he also had another part time life as a television presenter in both Australia and New Zealand. This included a science show for children in Australia and the host of ‘W Three’ and ‘It’s Academic’ for New Zealand television.

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Rural News // january 22, 2013

12 news

Anti-GM activist changes stance Pa m Tipa pamelat@ruralnews.co.nz

A former activist who helped start the anti-GM movement apologised and said he got it wrong to a UK conference, attended this month by DairyNZ chairman John Luxton.

Luxton said a speaker to the Oxford Farming Conference, environmentalist Mark Lynas, used to be a leading activist against genetically modified foods.

“He got up at the conference and made a public apology and said ‘I got it all wrong’,” Luxton told Rural News. “He now believes GM is the only way to feed the future world population.”

According to Luxton, Lynas spoke about how he had a political science degree and was also a campaigner and author on climate change. He was determined his arguments on climate change

would be backed by science and set out to understand it – which lead him to see his arguments against GM were not based on science.

“He realised he was a bright guy, but he didn’t know anything about science so he went back and relearnt it,” Luxton says. “He looked at all the peer review papers (on GM) and did a complete study of it over the years and thought ‘actually I have got it wrong’.

“He started his speech at the conference with – ‘I just want to publicly apologise for having made a huge mistake’ and for encouraging a lot of opposition to GM. There are millions of hectares planted by genetic crops around the world and no one has died’.

“This was an interesting perspective from someone who had been an activist totally opposed to GE.” Luxton says the British Secretary of State for Environment, Food

and Rural Affairs, Owen Paterson, also spoke on how there should be more movement on John Luxton GM production in the UK. “So he was also pushing the boat out a fair way relative to what’s seen as ok in New Zealand,” Luxton adds.

Both Lynas and Paterson’s comments attracted a lot of headlines “so it was interesting to see the shifts in direction coming out of the UK”.

Luxton says this was among many highlights from the conference. Another included this year’s research paper commissioned by the Oxford Farming Conference about farming and society – and the disconnect between the rural and urban sectors.

Why the about face?

“This was a very interesting report and looked at some of the same issues we are trying to deal with in New Zealand and more specifically within DairyNZ. Often people only talk about the negative impact of the farming sector… and the research paper says there are virtually equal and opposite environmental benefits from the farming sector.”

The research concluded that UK farmers are making significant contributions to national biodiversity, accessible green space, health and communities. It also said farmers had the skills and geographical reach to address some of society’s fundamental challenges such as health, well-being and self-sustaining communities.

But turning that opportunity in to reality required a better connection between wider society and farmers, and that was a two-way process.

Oxford Farming Conference speaker Mark Lynas spent “several years ripping up GM crops” and helped start the anti-GM movement in the 1990s.

“I thereby assisted in demonising an important technological option which can be used to benefit the environment,” he told the conference. “As an environmentalist, and someone who believes that everyone in this world has a right to a healthy and nutritious diet of their choosing, I could not have chosen a more counter-productive path.”

Lynas said his change of heart came after he “discovered science”.

“I discovered that one-by-one my cherished beliefs about GM turned out to be little more than green, urban myths.”

Lynas said desperately-needed agricultural innovation is being strangled.

“The risk today is not that anyone will be harmed by GM food, but that millions will be harmed by not having enough food, because a vocal minority of people in rich countries want their meals to be what they consider natural.”

Lynas’ message to the anti-GM lobby was: “We are coming to a crunch point, and for the sake of both people and the planet, now is the time for you to get out of the way and let the rest of us get on with feeding the world sustainably.”

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Rural News // january 22, 2013

14 news

Locky keeps on singing the ‘Blues’ p e te r bu r k e peterb@ruralnews.co.nz

Back on the farm at Ruawai, Lockwood Smith decided he wanted to breed cattle – partly because the farm was no longer suitable for running sheep.

He looked at several different breeds including Limousins, South Devons and Angus. “Then

I came across these Belgian Blues and I was just fascinated by the genetics.

Especially those genetics involving the myostatin gene and the suppression of that gene and also the efficiency with which they produce lean beef. I started the Belgian Blues in 1988, and 24 years later the genetics of them still fascinate me,” he adds.

But while he was fas-

cinated with the Belgian Blues, Smith recognized that the actual breed – as it stood – needed to be changed if it was to be successful in New Zealand.

For example, in Europe the animals are stall fed and many of the calves are born though caesarean section.

“So what I tried to do was to ‘harvest’ these interesting genes into New

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Zealand cattle. I started with the herd we had on the farm at the time, which was a hangover from the Angus stud. Although we dispersed the stud when I left home, they kept a few old cows and an old bull and interbred them with Friesians.

“There’d even been a bit of Limousin blood introduced into them; so that was the base herd I started with. Then I started incorporating Belgian Blue genetics into that and even used partbred sires to try and maintain the polled condition.

The Belgian Blues are horned animals, but now over 80% of my calves born are polled,” he says.

Smith’s focus was on selecting for calving ease, growth rate, structure and the mobility to get around the hills on his farm. While he shows animals, Smith says the selection pressure has always been on performance.

“I’ve developed an interesting line of cattle that are structurally pretty darn good and they still grow extraordinarily rapidly. The most spectacular performance I had a

couple of years ago was a bull calf at the Royal Easter show in Auckland.

He would have been barely 11 months old and weighed 584 kilos which was massive production.”

Unbelievably, says, Smith, under the scrapped ETS he’d have been penalised because it would be treated the same as 345 kilo carcase from a three year old.

“That’s what so crazy about the originally proposed ETS and the estimation of the methane emissions from ruminant animals. I’d be one of the

few in this place (parliament) that understands it. It’s crazy because you penalise the most efficient,” he says.

Some of Smith’s animals are killed at Ruakura and are sold through a supermarket in Wellington.

“They put it through its gourmet bar. Now your traditional men would all say it’s far too lean. Traditional works would downgrade it because it’s too lean and yet customers actually like it,” he says. @rural_news facebook.com/ruralnews

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Rural News // january 22, 2013

news 15

Inaugural on-farm lamb sale may become annual b e rn a r d lil bu r n

Hugh and Pru Lilburn, who farm Drysdale Station and Ferndale Properties – inland Hunterville, held their first on farm sale on January 9; yarding 7360 lambs from the two properties.

Top price of $80.50, for the day, was shared by a line of 321 very good cryptorchid lambs bought

by Alan McLeod from Feilding and 61 black face lambs bought by Douglas Duncan of Te Kumu Estates.

In years gone by, a highlight to the start of the farming year in the Rangitikei was the annual Hunterville Lamb Fair held in early January – with yardings of 15000-plus lambs.

However, these sales are no more and rather than flood the Feilding market, the Lilburns decided to hold an inaugural on farm auction.

At around 1860 ha each, both of their properties are steep hill country with 130ha of easier terrain beside the Turakina River, which flows through the farms.

The shorn lambs were presented in outstanding condition considering the dry period the area had before Christmas, with the lines presented being very even. The lambs had been weaned onto hill country crops in the week prior, and stock from this area, 25 kilometres inland from Hunterville, in the Turakina Valley, is renowned for its shifting ability.

The white face lambs

are sired by Cheviotcross Kelso rams out of Romney ewes, while the black face lambs by Suffolk rams from Kevin Nesdale at Kimbolton. Lilburn has lifted his stock performance markedly through a number of factors, including using Kelso genetics and strategic fertiliser usage. The lambing percentage for last year was 136%.

The 14 lines – ranging in number from one of 61 black face lambs, through to the largest of 1872, that sold in four cuts, bidding was spirited and PGG Wrightson auctioneer Keith Wilshire didn’t have to work too hard to secure the sales.

Prices ranged from the $80.50 down to $53.50 for a line of 263 smaller woolly cryptorchid lambs on account of Dean and Teresa Cunningham who lease 400ha of the Drysdale property from the Lilburn family. The Cunninghams sold another line of 289 better woolly lambs at $63.50, and these went to Mark Toulmin who has properties in Hawke Bay. The sale average price was $66.50/head.

Buyers attended from the Wairarapa, Hawke Bay, Manawatu and locally.

Prices were regarded as being around $3-5 above the Feilding store market.

Agents thought the sale was good, with competition from the estimated 150 people who attended.

It was a great day out for the locals, agents and buyers, but somewhat of a gamble for the Lilburn’s.

Their hospitality was out-

standing with plenty of food and refreshment provided. Speaking to Hugh after the sale he was happy

with the outcome, and although a first sale, it now may become an annual event.

PGG Wrightson agent Paul Petersen (left) talking with Feilding identity and Farmers Transport representative Neville Dais at the Lilburn on-farm lamb sale.

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Rural News // january 22, 2013

16 news Ag sector growing in confidence – UDC pa m t ipa pamelat@ruralnews.co.nz

“What we are seeing in agri and rural is that while it is still flat, there is still replacement activity going on, so there are pre-orders of tractors and harvesters. Some of that is seasonality but in the agriculture sector we did see that a bit earlier – getting those orders in prior and upgrading equipment so they could start work immediately.

“The sun is definitely up and it’s warm and there’s signs of growth. When it comes to commodities I think we all know the story in terms of the Asian

markets on our doorstep.

“I think the forward vision is definitely more confident out there.”

Following on from the September yearly result, Price says UDC had a very strong October and November.

October’s result, at just over $109 million, was its highest month since 2006.

“So you can see that we are going back to pre GFC levels so that recovery is there.”

New car sales are up across the board,

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a trend also seen at the fielddays last year, she says.

Agriculture represents 11.4% of UDC’s book – including farmers and contractors – and 17.2% if forestry is included. Across the board, Price says in the year to September 2012, UDC’s book increased by 3.5% to over $3.5 billion and the company had a good focus on costs and deposits.

Price says UDC is about New Zealanders investing in New Zealand business.

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The agri and rural sector, along with most others, are showing less nervousness than mid last year, according to UDC Finance chief executive Tessa Price.

Her comments followed UDC’s announcement that its net profit after tax rose 31% to $37.9 million for the year ended September 30, 2012. This was driven by a lift in lending activity and an

increased focus on cost management.

“From our perspective there are some positive signs out there as a result of quality new lending, and it is quality because our provisions and bad debts are down,” Price told Rural News.

“It does appear in most sectors including agri and rural that customers are less nervous than they were say five months ago. They now seem to have a forward vision … and there’s certainly been some consolidation which has helped.

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UK SHEEP farmers are reeling from a sharp drop in farm gate prices.

The National Farmers Union says farmers are now losing on average $55 (£26) for every lamb they sell at market. It also points out that farm gate prices have dropped by a fifth in the past year, while supermarket retail prices have gone up.

Last week, UK supermarket chain Sainsbury’s announced it will increase lamb prices paid to 800 Welsh farmers by $1.15/kg until the end of February.

With lamb prices at their lowest for three years, the situation for farmers has been made worse by rising production costs due to the extreme weather in 2012. Impacts from the new lamb-deforming disease Schmallenberg are also being felt with the spring lamb season about to get underway.

The NFU wants retailers to “demonstrate genuine commitment to their British suppliers and customers”.

NFU livestock board chairman Charles Sercombe says farmers are working hard to stay on top of a really tough situation. But they face challenging conditions on the world market while seeing a considerable reduction in the price that local retailers pay.

Cheaper imported lamb products on supermarket shelves don’t help, says Sercombe.

“What puzzles me is that prices to consumers have increased. Demand from consumers has also remained strong, so what’s happening; where is the money going?

“I want to see a thriving British lamb sector, crucial if we are to attract young people to work in our industry, so retailers have to start working more closely with their British lamb supply base to help meet some of the challenges being faced. And we need our customers - the consumer - to reap some of the benefit too.”

Sercombe says Sainsbury’s decision is a good start and challenged others to follow.

“It’s positive that Sainsbury’s has listened to its farmer suppliers and although it only involves limited numbers and is for a limited time period, it lays down the challenge to other major retailers to ensure their lamb suppliers also receive a fair price.

“The NFU will be looking closely at the procurement activities of all major retailers in the coming days.

“The consumer showed last summer on milk that they will not accept retailers paying farmers below the costs of production for food. Sainsbury’s has recognised that sheep farmers cannot run businesses on current prices.

“It’s clearly time for the whole trade to now show they are committed to a sustainable UK lamb industry.”

Sainsbury’s chief executive Justin King says it is passionate about sourcing British product.

“Because of the close relationship we have built with our farmers we can react quickly to the volatile market conditions. That is why we have announced a new price for our lamb farmers.”

Rural News // january 22, 2013

world 17

Arla emulates Fonterra’s strategy su d esh k issu n sudeshk@ruralnews.co.nz

DANISH DAIRY cooperative Arla Foods is ditching expansion plans in Europe and increasing its focus on China, Russia and Africa/Middle East.

The co-op aims to double sales of ingredients to the growing food industry outside the EU. At the same time, the focus in Northern Europe moves from expansion to increased profitability and innovation.

The strategy change is similar to Fonterra’s strategy refresh unveiled last year. Fonterra is setting up more dairy farms in China and boosting production capability in Asia and the Middle East.

Arla notes in markets outside the EU, millions of people have achieved a better standard of living and are demanding healthy and safe food products.

Arla Foods chief executive Peder Tuborgh says its exports to Russia, China and the Middle East & Africa region are growing rapidly.

“We will work hard over the next five years to build on the massive potential that these markets hold for Arla’s products,” he says.

Defining Russia, China and the Middle East & Africa as strategic growth markets will see Arla increase investment in marketing, distribution networks and cooperation with local partners in these markets between now and 2017. By 2017 the overall revenue from Arla’s strategic business generated in these markets is set to increase from approximately $760 million to $2.1 billion.

The revised strategy is linked to the abolition of EU milk quotas in 2015.

Without EU quotas it is anticipated that Arla’s milk farmers will produce at least one billion kilos of milk more each year than today. The extra milk cannot be sold as profitable products in the EU due to growth stagnating, it says.

“We have an opportunity to achieve profitable long-term positions in markets outside the EU, and therefore it is important that the strategy sends a clear signal to the organisation that we need to further develop our sales channels.

“Our dairy products need to reach many new consumers as these increased global sales will help to maintain a viable dairy business in northern Europe,” In recent years, Arla has strength-

ened its positions in its core markets in the UK, Sweden, Germany, Denmark, Finland, and the Netherlands. According to its Strategy 2017, these markets must continue to be developed, but with more focus on refining activities, not

primarily through expansion via mergers and acquisitions. Tuborgh says Arla has a lot of unutilised potential that must be put to good use.

“We can do this by further advancing our relations with customers and con-

sumers, offering more attractive products, and finding new ways to inspire our customers. We will continue to focus on the three global brands of Arla, Lurpak og Castello, which must all grow via their individual unique profiles.”

Rural News // january 22, 2013

18 agribusiness

LIC on hunt for new boss pa m tipa

Livestock Improvement Corporation (LIC) is launching an international search for a new chief executive.

This follows current CE Mark Dewdney announcing he will step down from his position on May 31 to fulfil a long-term ambition to be a ‘hands on’ dairy farmer and expand his professional direc-

tor roles. Dewdney was recently appointed to the Tatua Cooperative Company Ltd board as a director.

On March 1, current chief operating officer David Hemara will assume the role of acting chief executive while the position is advertised. Dewdney will continue to support Hemara and the board until May 31.

Announcing the resignation,

LIC chairman Murray King says Dewdney joined LIC in 2006 indicating he expected to fill the role for five to seven years.

“He has done that, delivering outstanding financial returns to shareholders and overseeing an organisation which provides a large number of innovative solutions for New Zealand dairy farmers, and has developed a world class team of staff,” says King.

“LIC reviewed its strategy in 2012 and is well positioned for the phase of growth with clear direction and a significant programme of investment.”

Dewdney has extensive experience within the dairy industry both internationally and in New Zealand. Immediately prior to joining LIC he was the managing director for Fonterra’s Asian Ingredients businesses.

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Lamb producers could learn from New Zealand tourism by targeting top-end Chinese markets, says Westpac economist Nathan Penny.

Prime New Zealand lamb cuts remain out of reach for some years for many households in developing countries, despite sustained growth in these markets, he says. Westpac predicts China’s growth will accelerate to 8.8% from 7.8% last year.

“Nonetheless the potential’s there to develop top-end markets, as evidenced by the development of the New Zealand tourism market,” Penny says in the bank’s latest Sheep and Beef Outlook report.

“The challenge for lamb producers will be to develop their own niche within this growing top-end market.”

Annual Chinese tourist arrivals overtook British arrivals in 2012, becoming New Zealand’s second-largest market, Penny adds.

The Sheep and Beef Outlook says lamb prices have fallen hard during 2012, while beef prices are still at or near record levels. On one side of the story is Americans wanting their clean fuels and hamburgers and on the other side is recession in Europe with luxuries like lamb off the menu.

In 2011, both beef and lamb hit record levels but since their fortunes have moved in opposite directions with beef 8% down on those highs and lamb 30% lower.

Feed prices for US beef producers are being driven up by drought and the requirement that 13 billion gallons of biofuel must be produced this year under rules designed to reduce carbon emissions and that country’s reliance on imported oil.

US producers have not culled as they normally would following a drought. The cattle herd is at its lowest in 60 years. The US accounts for about 40% of New Zealand beef exports with potential for more growth.

The US Department of Agriculture expects imports to account for over 10% of the total US beef market by March 2013 “of which New Zealand beef exporters will grab their share,” Penny says.

In contrast, Australia has been ramping up its lamb exports, putting downward pressure on world lamb prices.

Its lamb production is forecast to increase 15% this year.

However, with the European economic recession expected to last well into 2012, the outlook for this product remains weak.

Improving wool prices could offset some of the lost income from weak lamb prices for farmers. China, which accounts for 45% of New Zealand wool exports, is driving the increased demand for wool.

“While other markets are weak, the combination of the increasing Chinese demand along with low wool stock levels should drive firmer wool prices in 2013,” the report says. – Pam Tipa

Rural News // january 22, 2013

agribusiness 19

Growing US economy will weaken NZ dollar - hopefully!

For the most part, 2013’s economic themes for the rural sector are looking generally positive.

However, there will be the ongoing challenges of both the high kiwi dollar and rising operational costs.

Expect to see some improvement in export conditions over 2013; with a lift in meat and dairy prices – as a result of recovery in demand from the US, Australia and China.

The best prospects for any kiwi dollar weakness will come from growing US economic strength.

American economic fundamentals should begin to sharpen during 2013, in turn creating an environ-

ment that will drive down the Kiwi against the US dollar.

While there are other currencies the NZD has recently fallen against such as the Euro and Japanese Yen; the vast majority of New Zealand’s primary exports are traded in US dollars so this is the one to keep the closest eye on.

Recovering economic activity in China over 2013 is set to drive demand for dairy products, while the lingering effects of drought in the US and elsewhere continue to constrain agricultural supply. The United States drought last year impacted on roughly 62% of that country.

This brings back the

horror memories of the dust bowl years during the great depression. The dust bowl, or the ‘Dirty Thirties’, was a period when severe dust storms that caused major ecological and agricultural damage to American and Canadian prairie lands in the 1930s.

Meanwhile, the recent drought has pushed US beef prices to record highs.

With the American domestic market a large destination for US beef; therein lay some good news for New Zealand beef export prices.

There is also a glimmer of hope for lamb prices, with export volumes rising as the Chinese start the 2012/13 season on a strong note import-

ing more than double the volume of kiwi sheep meat than a year before. China has recently overtaken the UK, on a volume basis, as a key export market for New Zealand sheep meat – with China importing 62,000 tonnes of NZ sheep meat between October 2011 and September 2012.

Although this does not directly impact already low prices, increasing demand in the Asian region will lead to long term price

support for sheep meat.

Fonterra’s investment units will be ones to watch this year for all those interested in investing in the dairy sector. The units set off with a bang, late last year, when they were listed at $5.50 and have quickly shot up above $7 in early January.

Look out for links between the milk price movements and movements in the unit price.

With the first GDT dairy auction of the year being up 2% and increasing dairy demand offshore; short term milk prices look to be well supported.

Unfortunately, operational costs aren’t set to go south anytime soon. This shows inefficiencies in the

supply chain, as a high kiwi dollar – in theory – should bring prices down.

The industry is a getting an unwanted double whammy here, where in the fact returns are being suppressed by a high kiwi dollar and not being reflected in lower operational costs. New Zealand wheat producers are likely to see a good start to 2013, as US wheat inventories ended 2012-13 smaller than had been expected.

These may not get the refill this year which investors had expected either, with winter wheat sowings coming in below forecasts not helped by the summer droughts.

So there is a lot in the pipeline across the rural

sector for 2013, but the big themes will be the high-flying kiwi dollar and export markets.

The New Zealand economy is set to continue growing at a stable pace this year; so there is not much here that will drive the kiwi dollar down. So all eyes will on the US economy for any relief on the kiwi dollar and on our trading partners for any export growth.

• Francis Wolfgram is an Independent Financial Analyst with BA in Economics including 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 // january 22, 2013

Market snapshot

lamb market trends

Meat

North Island

South Island

c/kgCWT

Change c/kg

Change c/kg

Last Week

Last Week

Lamb - PM 16.0kg

n/c

4.73

n/c

4.73

Steer - P2 300kg

n/c

4.23

n/c

4.00

Bull - M2 300kg

n/c

4.40

n/c

4.00

Venison - AP 60kg

n/c

6.50

n/c

6.78

BEEF PRICES

5yr Ave Last Year This Year

$7.5 $6.5

Oct

Nov

Dec

Jan

Feb

Mar

South Island 16.0kg M Lamb Price $8.5

5yr Ave Last Year This Year

$7.5

Last Year 4.60

n/c

4.71

4.71

7.36

4.40

4.85

PM - 16.0kg

n/c

4.73

4.73

7.38

P2 Cow - 230kg

n/c

3.55

3.55

3.70

PX - 19.0kg

n/c

4.75

4.75

7.40

M Cow - 200kg

n/c

3.40

3.40

3.60

PH - 22.0kg

n/c

4.76

4.76

7.41

Local Trade - 230kg

n/c

4.20

4.20

4.60

Mutton

MX1 - 21kg

n/c

2.78

2.78

4.60

P2 Steer - 300kg

SI Lamb

YM - 13.5kg

n/c

4.00

4.00

4.35

n/c

4.73

4.73

6.91

n/c

4.00

4.00

4.30

PM - 16.0kg

n/c

4.73

4.73

6.93

P2 Cow - 230kg

n/c

3.20

3.20

3.50

PX - 19.0kg

n/c

4.73

4.73

6.95

M Cow - 200kg

n/c

3.00

3.00

3.40

PH - 22.0kg

n/c

4.73

4.73

6.96

Local Trade - 230kg

n/c

4.10

4.10

4.38

n/c

2.56

2.56

4.35

NZ Slaughter Change

2Wks Ago

3 Wks Ago

Last Year

5yr Ave

Cattle NI

+79%

15.4

8.6

19.2

18.5

-

Lamb NI

Cattle SI

3.1

0.0

5.9

4.9

Cattle NZ

+115%

Lamb SI

18.5

8.6

25.1

23.5

Bull NI

+127%

6.8

3.0

9.4

8.0

Bull SI

-

0.3

0.0

0.9

1.0

Str & Hfr NI

+32%

5.8

4.4

7.3

7.8

Str & Hfr SI

-

2.0

0.0

3.5

2.9 2.8

$5.5

Cows SI

-

0.8

0.0

1.5

1.0

60

5yr Ave Last Year This Year

$4.5

3 Wks Ago

Last Year

5yr Ave

+197%

106

36

140

152

+525%

104

17

236

195

Lamb NZ

+301%

209

52

376

347

Mutton NZ

+99%

136

69

123

117

NZ Weekly Lamb Kill

750 600 450 300

Last Year This Year

0 Oct

Nov

Dec

Jan

Feb

Nov

Last Week

Change

$3.5 $3.0 Oct

Nov

Dec

Jan

Feb

M ar

Mar

Jan

Feb

Mar

Last Week

2 Wks Ago

Last Year

5yr Ave

UK Leg £/lb

+5

1.38

1.33

1.90

1.73

NZ$/kg

+12

5.82

5.70

8.13

8.50

Demand Indicator - UK Leg Price

Last Year

5yr Ave

£2.50 £2.00

95CL US$/lb

n/c

2.23

2.23

2.08

1.64

NZ$/kg

-12

5.82

5.94

5.80

4.91

South Island 300kg Steer Price

$4.5

2 Wks Ago

Dec

Change

Export Market Demand

$4.0

Change

Export Market Demand

Last Year This

20

North Island 300kg Bull Price

2Wks Ago

1000s

Oct

40 $5.0

Estimated Weekly Kill

0

80 M ar

MX1 - 21kg

150

NZ Weekly Beef Kill Feb

Mutton

NZ Slaughter

Estimated Weekly Kill

2.5

Jan

YM - 13.5kg

M2 Bull - 300kg

1.2

Dec

Last Year

4.23

2.8

Nov

2 Wks Ago

4.40

+133%

Oct

Last Week

4.23

Cows NI

$3.5

NI Lamb

Change

n/c

$6.5

$4.5

c/kgCWT

n/c

1000s

$3.5

2 Wks Ago

M2 Bull - 300kg

SI

$5.5 $4.5

Change

Last Week

P2 Steer - 300kg

North Island 16.0kg M Lamb Price $8.5

LAMB PRICES

c/kgCWT NI

beef market trends

Demand Indicator - US 95CL Beef

Last Year

£1.50

This Year

£1.00 Oct

Nov

Dec

Jan

Feb

Mar

$2.20 $4.0

$2.00 $3.5

Last Year

5yr Ave Last Year This Year

Oct

Nov

Dec

Jan

Feb

Oct

Nov

Dec

5yr Ave Last Year This Year

$8.5

Feb

Mar

Change

3 Wks Ago

Last Year

% Returned NI

+2%

75.6%

73.2%

82.74%

75.3%

% Returned SI

+0%

68.7%

68.7%

74.1%

68.9%

$8.0

$7.0

Last Year

Oct

Nov

Dec

Jan

Feb

60% Oct

Dec

Feb

5yr Ave

$9.0

Last Year This Year

$8.5

Procurement Indicator - South I.

90%

Last Year This Year

$8.0

80%

$7.5 $7.0

70%

83.3%

86.3%

92.2%

63.0%

% Returned SI

-3%

81.6%

85.1%

87.9%

58.9%

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

Last Year This Year

Oct

Nov

Dec

Jan

Feb

M ar

Nov

Dec

Jan

Feb

Mar

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

Last Year This Year

Oct

Nov

Dec

Jan

Feb

Mar

Venison Prices

$6.5 Oct

5yr Ave

-3%

Procurement Indicator - South I.

M ar

South Island 60kg Stag Price

$9.5

Last Year

% Returned NI

70%

$6.0

3 Wks Ago

This Year

80%

$6.5

5yr Ave

Procurement Indicator - North I.

90%

$7.5

2Wks Ago

Procurement Indicator - North I.

2Wks Ago

North Island 60kg Stag Price

$9.0

Jan

M ar

Procurement Indicator $9.5

Change

This Year

$1.80

$3.0

Procurement Indicator

60% Oct

Dec

Change

Feb

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

n/c

6.50

6.50

8.10

7.24

SI Stag - 60kg

n/c

6.78

6.78

8.20

7.46

M re people on the ground,

Rural News // january 22, 2013

news BEEF

price watch WOOL PRICE WATCH

DAIRY PRICE WATCH

Indicators in NZ$

Demand for works cattle has remained good into early 2013. Pricing for bull and local trade cattle have lifted slightly while export steer prices have held firm. 300kg bull prices in the North Island hovered about $4.40/kg last week and up to $4.45/kg. Competition from companies has lifted with the rain keeping a lid on numbers in early January. The latest kill numbers were 15-20% below the same week last year. With the NZ dollar firming to above US84c, and US beef prices steady to easing, companies are paying a higher proportion of market returns back to the farmgate. If the dollar remains above US84c for too long and dry conditions continue schedules may well adjust downwards.

Coarse Xbred Indic.

-4

3.90

3.94

6.36

Butter

Fine Xbred Indicator

+1

4.72

4.71

6.61

Skim Milk Powder

Lamb Indicator

-

-

-

-

Mid Micron Indic.

-

8.57

-

9.21

Whole Milk Powder Cheddar

China a strong future market China looks set to become a strong future market for NZ beef. Their economy continues to expand at a relatively rapid pace with GDP per capita following suit. This means the Chinese people have a greater purchasing power to buy higher priced protein like beef with a lift in per capita consumption showing this is already occurring. The building of trade relations with China has certainly paid dividends with seasonal beef export volumes lifting by over 500% since the FTA was signed four years ago. A hike in Chinese demand should help to offset the projected fall in volume to Japan when US beef age restrictions are relaxed and this should help tamper price falls at this time.

LAMB Lamb prices start a little lower in 2013 Some companies eased schedules back during the break with most pricing between $4.75-$4.85/kg (gross) last week. But there was a bigger range in price. $4.95/kg incl. loyalty premiums etc was still available last week and on the other hand lambs were making as low as $4.70/kg. Overall kill space is still tight, particularly for ewes in many regions. Lamb prices look like they may have found a level in the short term with the start of the Easter chilled season looming and underpinning demand. While the flow of lambs has been a little more subdued with the rain over the break, numbers could keep flowing, especially in the North Island, if there isn’t some follow-up rain shortly. Works ewes are mostly priced at $2.75-2.80/kg in the North Island last week and $2.60/kg in the South. There is a North Island contract at $3/kg for mid Feb to mid Mar supply which is proving pretty popular.

Change

08-Nov

Last Year

Beef prices remain firm in early 2013

01-Nov

Wool Indicator Trends

650 600 550 500 450 400 350 300

CXI

FXI

Indicators in NZ$/T

Prev. 2 Wks

Last Year

+32

3986

3954

4968

+63

4137

4074

4455

+62

4016

3954

4663

+39

4832

4793

5240

Dairy Prices Trends

6,000

LI

Last 2 Wks

Change

SMP But.

5,000

WMP Ched.

4,000

Jan

Mar

May

Jul

Sep

3,000

Nov

Jan

Coarse Xbred Indicator

700

Mar

May

Jul

Sep

Nov

Whole Milk Powder Price (NZ$)

5,500 Last Year This Year

600

4,500

500

Last Year

400

This Year

300

3,500 Oct

Nov

Dec

Jan

Feb

Mar

Overseas Price Indicators

Oct

Nov

Jan

Feb

Mar

Overseas Price Indicators

Change

08-Nov

01-Nov

Coarse Xbred Indicator

Last Year

-4

3.20

3.24

4.85

Butter

Fine Xbred Indicator

-1

3.87

3.87

5.04

Skim Milk Powder

Lamb Indicator

-

-

-

-

Mid Micron Indicator

-

7.02

-

7.02

Whole Milk Powder Cheddar

Indicators in US$/kg

Dec

550

Wool Indicator in US$

500

CXI

Indicators in US$/T

Last 2 Wks

Prev. 2 Wks

Last Year

n/c

3300

3300

3875

+25

3425

3400

3475

+25

3325

3300

3638

n/c

4000

4000

4088

Change

Dairy Prices in US$/Tonne

FXI

LI

SMP .But

4,500

450 400

WMP .Ched

3,500

350 300

2,500

250 Jan

Mar

May

Jul

Sep

Jan

Nov

Coarse Xbred Indictor in US$

May

Jul

Sep

Nov

Whole Milk Powder Price in US$/T

4,000

550

Mar

500

Store lamb prices are also showing some more stability after rain over the holiday’s kicked some life into greenfed crops and pastures.

North Island prices for 28kg lambs were $2.00-$2.10/kg. South Island prices were 10c/kg higher with better feed condition there on average.

3,500

450 400 350

Last Year This Year

300 250 Oct

Nov

Dec

Jan

Feb

Mar

Last Year

3,000

This Year

2,500 Oct

Nov

Dec

Jan

Feb

Mar

VENISON Deer prices stabilise at the farmgate Like in the lamb market, venison prices have stabilised in early 2013 after falling sharply in late 2012. North Island prices for 60kg AP stags last week averaged $6.50/kg with South Island prices 2030c/kg higher. Exporters are not shifting too much frozen product in the market at this point with prices still being negotiated. This provides some uncertainty for farmgate prices in coming months.

CURRENCY WATCH vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year

0.85

US dollar

0.845

0.828

0.843

0.790

Euro

0.637

0.635

0.645

0.617

UK pound

0.523

0.514

0.523

0.515

0.75

Aus dollar

0.798

0.791

0.801

0.767

0.70

Japan yen

74.97

72.25

70.52

60.70

WOOL

Euro

More Chinese interest boosts wool market

0.64

The first wool sale in 2013 saw a decent hike in prices for all wool types on the back of increased interest from China. Inter island price variations are now largely gone with North Island prices lifting to match South Island levels last week. There were over 21,000 bales on offer making it the largest sale since June 2012. But despite the large supply and strong NZ dollar, buyer competition for wool was strong with 90% of all bales were sold.

0.60

0.80 Last Year This Year

Oct

Nov

Dec

Jan

Feb

Mar

UK Pound

0.54 0.52 0.50 Last Year

0.56 0.52

US Dollar

0.90

This Year

Oct

Nov

Dec

Jan

here and overseas.

Feb

Mar

0.48

Last Year This Year

0.46 Oct

Nov

Dec

Jan

Feb

Mar

Rural News // january 22, 2013

22 opinion editorial

edna

Where to in the year ahead?

The first bit of good news to emerge in 2013 is that the Ministry for Primary Industry is going to live up to its new name and to start taking a leadership role in the primary sector. Federated Farmers – and others – will be pleased to see MPI’s aiming to be a Ministry FOR, not OF Primary Industry.

For too long the sector has lacked some high level leadership. The old MAF, in recent years, isolated itself to become quite an ordinary policy shop by providing OK advice to government but not publicly standing up for the sector. This was left to the Minister and a few industry leaders.

That MPI Director General Wayne McNee has decided to grasp the nettle and take a ‘leadership’ as distinct from ‘advocacy’, role is a positive move. It will please those who felt DOC’s environmental views were not countered at a high government level. Industry good organisations and some companies have done a good job in this space – as has Landcorp. However, those of us who remember the MAF of old recall it did put the primary sector on the map – so let’s hope MPI can re-invent the wheel.

This year will see some major reforms coming through parliament – especially in relation to the RMA and on water in particular. These are necessary as there is a danger that some regional councils, for their own perverse reasons, are heading down a track of stifling primary sector growth rather than enabling it to happen.

Sure there needs to be a balance, but achieving a clean environment and growing the primary sector is not an impossible target. On a daily basis we see farmers improving the environment and their own profitability, so why not on a national basis?

Local government reform was inevitable given the indifferent performances by some councils and, in particular, a lack of consistency nationwide.

What we are likely to see this year is the adverse effects of PSA on the kiwifruit industry and by all accounts this will be dramatic. Dairy prices will hold up, so will beef, but lamb prices – as are already seeing – are set to take a bit of tumble.

The primary sector is also likely to get a new minister with the incumbent David Carter potentially and reluctantly heading for the speaker’s chair in parliament. The hot money is on his ‘deputy’ Nathan Guy to succeed him.

All in all a year that promises so much.

- Peter Burke

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

“The wife and I have just had words, but I wasn’t allowed to use mine!”

the hound Office dangers Your old mate is well aware of the disdain many farmers hold for the shiny suits and paper shufflers who work in offices.

However, spare a thought for the dangers these people suffer in the dayto-day work life. Reports from England say the Manchester NHS Trust has banned the use of paperclips because staff kept cutting themselves!

So, the trust sent out a memo telling employees that all paperclips ‘should be carefully disposed of’ and replaced with plastic fasteners. And you thought life was tough down on the farm!

Want to share your opinion or gossip with the Hound?

Send your emails to: hound@ruralnews.co.nz

George who?

The Hound hears that rural services company PGG Wrightson is being a bit tough on punters at present due to the economic conditions.

However, a mate of yours truly was taken aback about how tough when opening up a new account. Thinking his 30-plus years with PGG Wrightson and friends with MD George Gould might do the trick, our mate dropped George’s name. “George Who?” the answer came straight back. Seems PGG Wrightson might need to send a profile of its boss around the troops.

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

A stepping stone?

Blame it on the weather

This old mutt has heard how Fonterra farmers view its Shareholders Council (SHC) as nothing more than a lapdog of the board – rather than a watchdog. One can understand this sentiment when you see the number of new Fonterra board members who were also former chairs of the SHC. Of the current directors this includes new chairman John Wilson, director John Monaghan and newly elected board member Blue Read. So it shows a stint as chair of the SHC is not a bad stepping stone on the way to a Fonterra directorship.

A sea-faring mate of the Hound tells of an encounter with a marine weatherman in Russell, Bay of Islands, while boating there over the festive season. This weatherman is responsible for broadcasting weather forecasts to boaties, although his run rate could have been better, says our source.

Picking the weather had become “impossible”, due mainly claimed the weather watcher, to “global warming”. Our salty sea-dog laughed out loud. What, he asked, had their excuse been before the world discovered global warming?

Moonstruck!

Speaking of bad weather forecasters, a mate of the Hound’s reckons the moon man Ken Ring’s predictions are about as accurate as his widely inaccurate and infamous earthquake predictions. According to Ring’s summary for January, based on lunar patterns, the driest regions for the South Island for January may be the hydro lakes.

However, 500mm of rain in the Waitaki and Rangitata river catchments in January was probably the most had over the summer in several decades.

NATIONAL SALES MANAGER: Ted Darley .......... Ph 07 854 6292/021 832 505 ted@ruralnews.co.nz

WELLINGTON SALES REPRESENTATIVE: Mark Macfarlane .Ph 04 234 6239/021 453 914 markm@ruralnews.co.nz

AUCKLAND SALES REPRESENTATIVE: Stephen Pollard ....Ph 09 913 9637/021 963 166 stephenp@ruralnews.co.nz

SOUTH ISLAND SALES REPRESENTATIVE: Kaye Sutherland Ph 03 337 3828/021 221 1994 kayes@ruralnews.co.nz

TAURANGA SALES REPRESENTATIVE: Tony Hopkinson .. Ph 07 579 1010/021 949 226 hoppy1@clear.net.nz

ABC audited circulation 80,767 as at 30.06.2012

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

Rural News // january 22, 2013

opinion 23

2013 – hopes for improved trade and environment most farmers I know care deeply about the environment because a farm is a home and a work-

“Most farmers I know care deeply about the environment because a farm is a home and a workplace. This is why we need environmental scientists working with us for solutions.” place. This is why we need environmental scientists working with us for solutions.

The Ministry for the Environment’s 2012 bathing quality results shows that while farming affects water quality, so does human activity. Farming by itself does not explain the very poor water quality sites found at camp grounds and around small

Since it received that silly moniker ‘as among the worst in the western world’, the Manawatu River has either had the biggest comeback since Lazarus, to be cleaner than Wellington’s Hutt River, or there is a human dimension to water quality.

While history will be the judge, I believe Federated Farmers efforts

on the Land and Water Forum (LAWF) may be the end of the beginning for finger pointing. What emerged in its final report was agreement. Agriculture, councils and even those organisations we sometimes rub up against, found common ground.

I acknowledge agriculture has been on the policy back foot ever since someone put two words together and formed

an unhelpful slogan but LAWF changes that. Decisions about how we farm with water are better made by affected communities than by a distant judge.

Some will continue to throw primary school taunts, but they are the fringe these days. LAWF is a big shift because it recognises the importance of keeping farming profitable and allowing it to grow, so

long as our environmental impacts don’t.

That is why we need environmental scientists working with us on solutions instead of problems.

With this and a TPP set to supercharge our exports, it would make for a very happy New Year indeed.

• Bruce Wills is the President of Federated Farmers and attended the TPP negotiations late last year.

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e ge n

I have two big wishes for 2013; an end to the ‘farmer v. environmentalist’ bickering and the Trans Pacific Partnership.

If we can get environmentalists working with us on solutions, a better environment will reap a pot of gold at the end of an economic rainbow called the TPP. Money makes all things possible; something you only discover when you don’t have it.

The TPP is a US$21 trillion club and Europe would need another Germany just to match it.

I know some have suspicions and want everything done in the open but trade negotiations are like any negotiation.

Whether it is for wages or a used car, there are things that must be kept within four walls. I doubt those of a conspiratorial disposition would want their personal details posted on the internet. I also know that any TPP deal will need legislation and if that does not provide scrutiny, what would?

The TPP must eliminate all tariffs placed on products to protect domestic industries from competition. Any other non-tariff condition must be based on scientific standards to make trade open, accessible and

above all, honest.

We will be onto a winner if we can get a high quality deal from the outset, especially one with water tight tariff phase outs and rigour around ‘non-trade barriers.’

Look at it like this, 20-years ago our twoway trade with Japan was ten times greater than our two-way trade with China. Last year, Japan represented just half of our trade with China. Our exports to China have trebled since 2008 when the China free trade agreement was signed; a success story for trade access and openness.

If you do not feel like you have exposure to exporting think again; every New Zealand dollar you spend is backed by what we collectively export. Likewise,

Th

B ruc e W ills

Rural News // january 22, 2013

Notice of Confirmed Candidates Nominations for the 2013 Beef + Lamb Board of Directors Elections closed at 5 pm, Thursday 20th December 2012.

Central South Island (one required) As only one nomination was received from Anne MUNRO for the Central South Island electoral district, no election is required.

Western North Island (one required) Two nominations were received for the Western North Island electoral district, therefore an election will be required. The candidates are: BRYANT

Kirsten

Fordell

06 342 7755

McCARTHY

John

Ohakune

06 385 9235

Elections Election Day will be Thursday 21 February 2013.

Elections will be conducted by postal and internet voting. Voting papers will be posted on 28 January 2013.

To be eligible to vote, a livestock farmer must, on 30th June 2012, have owned at least: 250 sheep, or 50 beef cattle, or 100 dairy cattle Livestock farmers owning at least the minimum number of livestock in the Western North Island electorate should contact the Election Helpline to check if they are on the electoral roll or to get a voter registration form. To vote, you must be on the Beef + Lamb New Zealand Ltd electoral roll by 5pm on Wednesday 23 January 2013.

A copy of the roll for each electorate is available for inspection at the office of: Beef + Lamb New Zealand Ltd, Level 4, Wellington Chambers, 154 Featherston Street, Wellington 6011.

Election Helpline: 0508 666 003 Warwick Lampp Returning Officer – Beef + Lamb New Zealand Ltd 0508 666 003 PO Box 3138, Christchurch 8140 wlampp@electionz.com

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24 opinion Bank confident in New Zealand dairy’s outlook Rabobank says it has a strong outlook for the New Zealand dairy sector, with its December survey showing confidence moving back into positive territory.

The bank says comments about the New Zealand dairy industry were incorrectly attributed to Rabobank in an article ‘Agriculture’s mythbuster in top flight’ published in Rural News on December 4, 2012. It disputes claims the bank has undertaken research showing a lack of viability for New Zealand dairy farms, as had been quoted in the article, a bank spokesman says.

Rabobank’s quarterly Rural Confidence Survey, released on December 14, 2012, showed dairy farmer expectations have nudged back into positive territory with those expecting the agricultural economy to worsen reducing from 41% to 21%. More than half

(52%) now expect it to stay the same, while 25% expect an improvement (versus 20% at the last survey).

In the latest survey, only 1% of dairy farmers surveyed considered that they were ‘unviable’, with 74% citing they were ‘viable or easily viable’, and a further 25% were ‘just viable’.

In addition, this survey was undertaken before Fonterra lifted the milk price in December for this current season by 25 cents/ kg MS. Rabobank senior dairy analyst Hayley Moynihan says that while the Rural Confidence Survey was conducted before Fonterra lifted its expected milk price to $5.50/kg milk solid, the price still remain 10% below last season.

“Dairy farmers had generally enjoyed milk production flows higher than last year over the first half of the season which

clearly illustrated by the low number of Fonterra shareholders who offered to sell shares into the fund: only 900 farmer shareholders providing only 5% of the fund, and 95% topped up by Fonterra versus a reported 10-to-1 oversubscription by eager investors swooping on the under-priced units. $100 million is not chicken feed and as farmer shareholders are forced to tighten our belts during a low payout year, we’d

Rural News’ irreverent and hypothetical look at what’s happening in the farming world

Top Bleats view all nathguyminister: Ah 2013… looking forward to taking over the primary industries portfolio when @ dcartermrspeaker gets demoted promoted to speaker! #lovemynewjob

Hayley Moynihan

had also assisted income,” Moynihan says.

The latest survey also shows New Zealand dairy farmers’ investment intentions have improved with 31% expecting to increase their farm investment over the coming 12 months versus 22% in the last survey.

Those expecting to decrease their investment fell from 15% to 12%.

Looking ahead, Rabobank expects international dairy prices to recover in 2013, with weaker demand growth unlikely to dent further price recovery on top of the firming prices evident in late 2012.

is taf a $100m bungle?

FONTERRA SHAREHOLDERS are asking how executives and directors of the company got the public float of the Shareholders’ Fund so wrong.

Unit prices went from $5.50 to $6.70 almost immediately on the units being listed.

In effect shareholders have given up $100 million of capital to outside investors, $40m of that has gone overseas.

The extent of the mispricing of the issue was

ag twits

expect to see accountability from the Fonterra board for a monumental balls-up.

Another issue for shareholders to grapple with is that TAF has again resulted in a situation where it costs more to share-up than we get for our milk. With unknown restrictions on the ability of shareholders to exchange shares for cash and vouchers from the shareholders’ fund, it appears that growing supply will be a more diffi-

dcartermrspeaker@nathguyminister: I actually see the speakership as my Clayton’s career move – the job you don’t want when someone else (namely JK) wants you to have it! #takingonefortheteam bwillsfedfarmers: Mine and Fed Farmers sincerest hopes for 2013 includes more drought, floods, pestilence and anti-farming sentiments from both government and NGOs to ensure my lobby is able to keep in the headlines. #keepingusrelevant jwilsonfonterra: For 2013 I’m looking forward to @henryexfonterra finally leaving the co-op board and going off silently into the sunset! #buggeroffhenry henryexfonterra: Let me tell you @jwilsonfonterra there’s about as much chance of that happening as Kim Dotcom being named 2012’s Weightwatchers slimmer of the year! #fatchance dshearerlabour: In 2013 I am looking forward to stamping my authority all over the Labour caucus and ensuring their unanimous support for David Cunliffe, Parker, Lange, Cameron, I mean …um, err, ah Shearer as leader. #decisiveasever johnkeypm: Ok, so 2013 means I need to stay away from fat Germans; short ACT leaders; gay, red shirts; ACC scandals; asset sales; memory lapses; farm sales to China! #focusfocusfocus damienoconnormp: Not sure how 2013 is going to turn out but I am pretty certain any bad news for the agriculture sector I will be able to sheet home to Fonterra’s decision to implement TAF!#moreofthesame mikejoymassey: 2013 will hopefully provide me with more opportunities to run off to international media and tell stories of how every NZ river is full of cow effluent, stale milk and dead babies. Can’t wait! #theskyisfalling

cult proposition than in the past.

It certainly makes a switch to independent processors look more appealing in regions where that option is available.

Matt Long Whangarei (Please note this is my personal opinion and I do not speak for Federated Farmers Northland on this issue.)

Rural News // january 22, 2013

management 25

Managing farms in enviro units Shortly before Christmas Beef + Lamb New Zealand re-launched its Land and Environment Plan toolkit with the help of Minister Amy Adams in Christchurch, followed by a field day in the Canterbury foothills. Andrew Swallow reports THINK ABOUT your farm as a series of land units and manage them accordingly.

That’s the underlying principle behind completing a Land and Environment Plan for a farm,

says AgResearch’s Alec MacKay, one of the scientists instrumental in the revamp of Beef + Lamb New Zealand’s Land and Environment Planning Toolkit.

Soil types are a key

factor, but the plan must look at the whole picture, he stresses.

“It’s not just the soil we’re thinking about, but where it sits in the landscape. For instance here, if we take those trees out,

Why now?

The Land and Environment Plan toolkit has been revamped and re-launched because “the environment has moved on a bit from when we first put it out,” Beef + Lamb New Zealand general manager market access, Ben O’Brien, told Rural News.

That was in 2005. Today there’s more pressure on farms to comply with regional council regulations, and councils themselves are under pressure from central Government to “take control.”

Those domestic factors were “the major driver” for the re-launch. The aim is to provide tools to farm under new regimes, but there’s also an international marketing angle, for farms to be able to show their practices live up to the cleangreen branding, O’Brien says.

“Since the global financial crisis there’s not been so much focus on sustainability in international markets as there was four or five years ago, but the wheel will turn again.”

it would seriously degrade this unit of the farm,” he told field day delegates standing in a paddock on Colin and Hilary Guild’s Quartz Hill Station, Canterbury, just before Christmas.

But for a well-established pine shelter belt some 200m to the west of where the group had stopped, Mackay’s wise words would have been lost on the nor’wester ripping down the Rakaia valley.

The station’s exposure to such winds was recognised by the Guild’s when their family took it on in 1973. They’ve been steadily planting trees ever since.

“You can’t farm this land without shelter,”

Colin Guild (right) discuss soil management with AgResearch’s Alec MacKay at the BLNZ LEP launch.

Colin Guild told the field day. “We always have to keep this in mind.”

An example is their approach to crop or grass establishment.

“We try not to cultivate

at all, preferring to direct drill. But we will cultivate if we have to because soil’s been pugged or damaged.”

Running from 500m to just under 1000m, the altitude makes for a short

growing season and a clay pan in the glacial soils limits the areas which can be grazed in winter. Again, it’s an environmental factor the Guild’s have to page 28

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Rural News // january 22, 2013

26 management

Worms the ultimate workforce?

Tony H op k inson

JOHN FELL has a large business in Kawerau with a huge work force, yet he’s never had any problems with ACC, Health and Safety, unions, strike action, or even wage negotiations.

“They work 365 days of the year, for nothing,” he told Rural News. “All I have to do is feed them.”

Fell and partners Michael Quintern and Tom McDowell own Ecocast, one of the biggest worm farms in New Zealand. Their “workforce” numbered about 400 million late last year and is increasing all the time.

They’re employed across 6ha processing biosolids from the sewerage systems of Rotorua and Te Puke, mixed with pulp waste from the nearby Norske Skog paper mill.

The pulp is wood fibre

that’s unsuitable for paper making. Historically it went to landfill but now Ecocast takes 7500t/year.

The biosolids also formerly went to land fill but now Rotorua City Council delivers about 10,000t/ year to Ecocast, and about 80t/month comes in from Te Puke’s treatment station.

“We are in negotiation with other councils as we could process a lot more,” comments Fell.

Incoming biosolids are dumped in a concrete pit then combined with wood fibre in a Keenan mixer wagon and laid in windrows 110m long, 10m wide and 500mm high.

Scoops of maturing material from earlier rows are added to new rows get the digestion process started, but as windrows mature and run out of nutrients – the biosolids are

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high nitrogen, the wood waste is high carbon – worms naturally migrate to adjacent windrows to find new food.

“Most of the worms shift at the same time and can travel 100m overnight.”

Two types of worm are used: Tiger worms and Southern worms. Both are prolific breeders with a two year life span. They start breeding at four to six weeks depositing six capsules/week with 3-5 worms/capsule.

Six months after establishing a windrow any plant growth on top is sprayed and incorporated into the windrow where it’s processed by the worms.

New Zealand health and safety regulations dictate the residual vermicast from the windrows cannot be used for compost or on land used to grow crops for human consumption.

Fell says he accepts these rules but also that he believes it to be totally

safe: it’s passed through worms at least five times in the windrow, he points out. The product has also passed as Aa grade as defined in the guidelines for the safe application of Biosolids to Land in New Zealand. (NZWWA 2003) Only a quarter of the original volume of material is left, about 500t per row. PJ Brogden Contracting, Awakeri, remove and spread it, but cannot keep up with the demand.

“We spread most of it on ground being used to grow maize, mostly to repeat customers as well as new farmers who have seen the results.”

Brogden says maize growers report improved soil, more worms, and increased plant yields.

Fell’s partner in Ecocast, Michael Quintern, is also managing director of Noke Vermicomposting Solutions. Noke is the Maori word for worm and by the end of 2013 the various composting enterprises it’s involved

New enterprise Ecocast started a new venture this month [January] on a disused air strip near Kawerau. It will use another 7500t/year of wood fibre waste plus 20,000 tonnes of dewatered sludge from oxidation ponds at the paper mill. The two products are combined in the same way as the pulp plus biosolids, and laid out in similar windrows.

“The advantage of this new product is that it can be applied to any land or cropping ground, in plant mixes and sold as compost,” says Fell.

The material is much safer than many commercial composts as it is matured and poses no Legionnaires’ Disease risk. Strong demand from dairy farmers aiming to improve soils and get better worm cultures established is expected.

John Fell of Ecocast.

with will have prevented 140,000t of waste from going to landfill.

“This is a significant saving in landfill area, and we can’t keep up with the demand [for vermicompost],” says Quintern.

“The potential to grow this industry to process formerly waste products has no limits.”

Quintern was raised on a farm in Germany and had a university career including a PhD on application of organic waste to farmland and 12 years’ lecturing before coming to New Zealand seven years ago.

His first role here was with the former

Forest Research Institute in Rotorua, investigating land application of organic waste, which lead to research on worm farming and composting.

“I looked around and saw all this waste material on the one hand and demand for vermicast fertiliser and compost on the other. The surrounding pumice soils were crying out for organic material.”

After forming his company one of his first projects was with Tuaropaki Trust at Mokai south of Tokoroa. The Trust has 12ha of glasshouse tomatoes which create 2000t/ year of reject fruit and vine waste. Combining

this with fibre/wood waste from Kinleith mill means it’s all now turned into useful vermicast compost and fertiliser.

Quintern believes the dairy industry also has waste which could be converted into useful vermicomposting products.

“A large amount of waste is created just from the washings of plant and tankers. This is treated and when aerated forms a different DAF sludge that could be combined with timber waste and processed through a worm farm.”

Whatever product(s) are used, there are no smells created, he says.

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Rural News // january 22, 2013

management 27

Top pasture principles relayed SU D ES H K I SSU N sudeshk@ruralnews.co.nz

WAIKATO FARMER Dave Muggeridge’s farming philosophy is simple: keep grass in good condition and monitor growth weekly.

The Tatua Cooperative supplier’s good pasture management practices are delivering results. His farm is in the top 5% of farms ranked on profitability on DairyBase, an online software tool that analyses farm businesses.

The Morrinsville farm was also one of the two winners in the Pasture Renewal Persistence Competition, run by the DairyNZ-led Pasture Renewal Leadership Group. The competition set out to find Waikato and Bay of Plenty’s best renewed dairy pastures.

Muggeridge’s farm was picked for the quality of its three-year-old pastures, the result of good management before and after sowing, and subsequently.

Judges found high levels of white clover and low weed contents in the winning paddock. They said the success of the pastures, established in 2009, came down to good grazing management, careful pre-sowing preparation and a correct choice of endophyte (AR37).

Muggeridge says he opted for Commando AR37, a diploid perennial ryegrass, sown with Tribute and Emerald white clover. Last month he hosted a fielday on his farm to share his success story with 40 other farmers.

The wining paddock was converted from old pasture in 2009 following the removal of a hedge.

Muggeridge says he did not rush the pasture estab-

lishment process.

“The paddock was grazed and then sprayed with Round-up before being ploughed. We waited for rain to lift soil moisture, then power harrowed, rolled, sowed and rolled again the same day.”

The first grazing involved 160 cows but only after the pasture passed the ‘pluck test’. The cows had about two hours in the paddock and were removed once a residual of 1500kg DM/ha was achieved.

The second grazing was during a winter round of 90 days, the cows going in when cover reached 2500kg DM/ha, again grazing down to 1500kg DM/ ha.

Muggeridge says maintaining paddock quality is the key.

“The cows are monitored while in paddocks at all times during wet weather to ensure paddocks are not being damaged. If there are signs of pugging the cows are stood off on the feed pad. I believe in an absolutely no pugging policy.”

Feed deficits are filled with PKE or silage. Muggeridge and his wife Mary have owned the 90ha (effective) farm since 2006. They run 270 cows and target 110,000kgMS this season. Contract milkers Ashley and Andrew Kowalski have been on the farm since June 2011.

Muggeridge has a fiveyear plan for the farm that includes pasture renewal, even though pastures are still producing well.

Regrassing what turned out to be the winning paddock has taught them some valuable lessons, he says.

“Don’t rush the seedbed preparation… A firm seedbed and compaction

is crucial.” Also wait for adequate soil moisture to get a high germination.

Once the sward is established, maintaining paddock quality and regular monitoring to prevent

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Rural News // january 22, 2013

28 management Three levels to relaunched LEP from page 25

built into their management, acquiring two runoffs to limit the number of stock they have wintering on the station.

“We keep the cattle off the heavy flats in winter…

It can get impossibly wet, and did [last] year.”

Location of waterways and erosion risk is taken into account with

any development, especially fencing. Tussock is preserved and encouraged near water to protect soil and water. On steeper country spraying of matagouri is “strategic” to leave some for soil and stock shelter.

Two areas of red tussock are protected by QE2 covenants.

Extensive soil testing

drives nutrient management decisions.

“We have a rigid liming policy because of the wetness. We come back in [with lime] every five years.”

MacKay says when doing a LEP, the principle is to think about how best to use and preserve the resources of the farm going forward.

“You need to build on a property’s advantages without degrading its resources.”

The BLNZ toolkit splits the process into three levels: Level 1, or entry level; Level 2; and Level 3 which aims to achieve standards suitable for quality assurance programmes.

Completing a level

3 LEP will be least challenging when part of the standards are already being achieved, and a level 2 LEP has already been prepared, says the levybody.

A manual for each level presents a step by step approach to assessing the farm’s resources and building an appropriate management plan The land and Environment Plan toolkits contain a booklet for each level, breaking the process down into manageable steps.

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Northern South Island extension manager Ian Knowles says because every farm is different, there’s no one-size-fits-all solution, and every farm will need to work out their own plan.

“If this stuff was easy we’d have posted out a little capsule, but there’s no silver bullet to these things.”

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Rural professionals aim to raise game THE NEW Zealand Institute of Primary Industry Management has created a new position of chief executive following a comprehensive strategic review of the institute’s role.

Stephen Macaulay, previously general manager of the Agricultural and Marketing Research and Development Trust (AGMARDT), has been appointed to the position, and says the aim is to build professionalism of members so they are better placed to meet farmers’ advisory needs.

“When you look at the level of sophistication of farming systems now, and the regulatory environment, the need for a greater skill set and professionalism among those providing services on farm has never been greater,” he told Rural News.

NZIPIM president Wayne Allan, says he’s delighted Macaulay, who hails from a farming background in South Canterbury, will lead the organisation.

“Industry sectors and government agencies are looking to NZIPIM to help the farming community work through a number of important issues. These include increased regulation of land use with respect to water quality and environmental performance, as well as the continued development and profitability of farming systems.”

Macaulay’s experience with AGMARDT and previous role as general manager of the Retail Meat Industry Training Organisation and Retail Meat New Zealand, means he’s well placed to meet these challenges, says Allan.

NZIPM was formed in 1969 as a voice for qualified rural professionals within New Zealand. It has a membership of 700 spanning a wide variety of occupations including: agribusiness and farm management consultancies, education providers, farm finance and accountancy firms, rural banking, farmers, fertiliser companies, rural valuation, agri-sciences, property management, veterinary services and other agri-business positions.

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Rural News // january 22, 2013

animal health 29

Bumper season sees big wins for some THE FESTIVE season saw thirty-four lucky farmers land an extra and unexpected Christmas present courtesy of animal health firm Coopers and a range of other companies involved in its Bumper Season initiative.

For most, the prize was a drench-backpack with gun, but four winners landed considerably bigger catches, such as Ross Paterson of Waikaka Studs, Gore, who drew the Gallagher weigh scale and data collector prize.

“It’s awesome,” Paterson told Rural News. “It’s a great product to have and to get to play with. I’m pretty enthusiastic about that [recording] side of things.”

While he and his family already use EID to track

growth and other traits in their 700 Romney, RomPer, and RomTex stud ewes, plus the 150 Texels, the unit is a definite improvement, he adds.

“This machine is built to do this kind of stuff.

The one we’ve got is much older and we’ve upgraded it over the years. I’m looking forward to using this one.”

Paterson won thanks to filling in an online form with the numbers off a couple of 10 litre packs of Scanda, Coopers’ oxfendazole + levamisole combination drench.

“We use a lot of Converge (abamectin + levamisole) but thought we’d mix it up a bit and use another family of actives to make sure we stay clear of any resistance.”

Converge was the Coopers’ product which saw Tennant McNeil,

Tahunga, inland of Gisborne, land a Stihl MS391 chainsaw.

“I’m bloody wrapped.

It’s a great saw,” he told Rural News.

In partnership with his brother he runs a 50,000 stock unit sheep and beef business on a range of owned and leased properties up the east coast.

“There’s plenty of opportunity on the East Coast, and plenty of opportunity to use a chainsaw!”

Coopers’ first Bumper Season draw also saw a Honda XR125 farm bike and Honda WB20 water pump presented.

The bike went to Southland-based builder and lifestyle farmer, Richard Wilson, while the pump winner was Nancy Craig, of Mt Charles, Herbert, North Otago.

Craig admitted she had her granddaughter to thank for her and husband

Jim’s windfall.

“She filled it all in for us online. I knew nothing about it until I heard I’d won.”

Coopers’ brand manager, Shelley Reynolds, says the Bumper Season, bump up your productivity and win, initiative is on-going with another 34 winners announced last week (see panel) and the same number of names to be drawn in February.

“Then the 15th of March is the big one. Everyone who has entered in any month will go into the draw to win just one big prize, which will be the farmer’s choice between a Gallagher Sheep Auto Drafter with weigh scale and tag reader, or a Honda Big Red MUV fourwheeler.”

Results of draws to date, and how to enter for subsequent draws, are on www.bumperseason.co.nz

latest winners

James Barron, Matamata: Gallagher weigh scale & data collector Lauchie Phillips, Putaruru: Honda XR125 farmbike Graham Wheeler, Taumaranui: Stihl MS391 chainsaw Amy Barrett, Gore: Honda WB20 water pump

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More BJD cases in Queensland THREE MORE cases of Bovine Johnes Disease (BJD) in Queensland have been reported.

BJD is a notifiable disease in the state and two of the suspected new cases have been traced to movements from a Brahman stud near Rockhampton which was found to have the disease late last year (Rural News, Dec 4).

A third suspected case is on a separate property in Southern Queensland, in an animal

imported from one of Austalia’s southern states where BJD is endemic.

“There are market implications for those that have Johnes Disease for live exports,” ABC News reported Biosecurity Queensland’s chief veterinary officer Rick Symons as saying.

Stud producers are lobbying for the disease’s notifiable status to be lifted, arguing movement restrictions imposed on

properties notifying outbreaks, and those they deal with, encourage producers not to report possible cases.

The Brahman stud case led to movement restrictions on 160 properties which had received cattle from it.

Restrictions remain in place until properties test negative for the disease, which could take months. Positive tests trigger full quarantine and cull requirements.

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Rural News // january 22, 2013

30 animal health

Facial eczema season off to a nd rew swa llow andrews@ruralnews.co.nz

EARLY SPORE counts point to a potentially severe facial eczema season with vets advising clients to heed the warning signs and protect stock.

“Zinc is only protective,

not curative,” points out Angus Campbell of Northland Veterinary Group, Whangerei.

“You want it there before the spores hit the liver. If damage has been done, zinc won’t fix it.”

Beef and Lamb New Zealand’s risk and incidence monitor* shows

20% of sites had elevated spore counts as of January 11, far higher than at this stage in the three previous years. Rodney, North Auckland, topped the table with a massive one million spores per gram.

Rural News went to press before Jan 18 data was available, but Camp-

bell says conditions have continued to be favourable (warm nights, plus moist pasture) for the fungus so it is likely spore counts will be on the rise at more sites.

Spore counts can double every 24-48 hours, so a low reading can rise very rapidly, going from

1000 to 2000 then 4000 and 8000 and so on in as little as a week, he explains.

“You need to be very careful about relying too heavily on low readings. If there are some high readings, you can be pretty sure they will soon be high all over the district.”

I’M STICKING WITH WHAT GIVES ME THE MOST SECURITY

That said, local variations in weather and pasture make a big difference so taking pasture samples from at risk paddocks and getting them analysed is “not a bad idea,” Campbell adds.

“Not many farms do their own spore counts these days, but it is a good idea because the best information is that specific to your farm, not one 10 or 15km away.”

That advice is echoed

by Feilding-based vet Trevor Cook who travels nationwide on consultancy work.

“As soon as there’s an indication spore counts are going up in your area,

switch to your own monitoring,” he suggests.

The cost of tests is minimal and methodical sampling across a farm will help identify high and low risk paddocks.

“You can build a picture of where you can shift stock to if and when spore counts start to rise, and try to accumulate feed in the lower risk areas so that there’s feed there when it’s needed.”

Sheltered and shady areas with longer pasture are most likely to have high spore counts, so those are the areas to take pasture samples in first, he says.

The fact there were

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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.

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While cattle, sheep, deer and goats are all susceptible to facial eczema, for dairy farmers in particular, the disease can “put a real brake on production,” warns Altum’s Jackie Aveling.

Sub-clinical FE from exposure to the spore-born toxin sporadesmin can cause immediate drops in milk production before physical signs appear, she points out.

“It’s possible that farmers will not be aware of the full extent of a facial eczema problem until it’s too late.

If as little as 3% of the herd show clinical signs of facial eczema, then subclinical cases can affect up to 70% of the herd.”

Affected animals’ production can be halved, she warns.

“Farmers need to take into account the cumulative effect of spore consumption. A count of 60,000 is considered high risk, but stock can still be affected with cumulative effects at lower counts.”

Spore counts increase where grass temperatures are above 12 degrees for three consecutive nights.

Aveling says dosing troughs with zinc sulphate doesn’t guarantee protection as zinc tastes bitter and can reduce water intake. Altum’s solution is to improve the taste with Zincmax+, a combination facial eczema treatment with Agricultural Compounds and Veterinary Medicines (ACVM) registration.

“Zinc in the feed isn’t an ACVM registered treatment,” she notes.

The peppermint taste of Zincmax+ makes it palatable, helping herds maintain water consumption, says Altum. It also contains organic copper which helps offset zinc’s antagonistic affect on absorption of copper, an important trace element for production, immune response and breeding. Low copper can also affect growth and fertility in heifers.

Rural News // january 22, 2013

animal health 31

SECURE YOUR LAMB NUMBERS. SECURE YOUR GAINS.

ominous start

How to plan for a successful season.

Productivity losses can occur even if there are no visual symptoms, warn vets.

LOOK OUT FOR THE ‘WHEEL’ AND GET YOUR VACCINATION PLAN ROLLING. already pockets of elevated counts early in January is an indication the fungus is “up and running and starting to multiply early in the season,” Cook warns.

“The potential to produce large spore numbers later in the season requires the fungus to start multiplying early in the season.”

However, dry spells in the east of the country should limit risk in those regions, he notes.

According to Cook, often farms are unaware of productivity losses due to FE as there may be few, if any, symptoms, other than maybe a few lambs with crusty ears.

“Then there will be a lower result at pregnancy scanning that they can’t explain.”

In hoggets, exposure to the spores, as indicated by raised GGT levels in the blood, will cause a lifelong fertility reduction, he adds.

“So the consequences

are significant.”

Campbell notes the disease has occasionally caused deaths numbering in the hundreds in unprotected dairy herds in the Waikato, but in less extreme cases production losses are still marked yet may go undiagnosed.

“Probably only 20% of cases develop skin lesions.”

His preference is for direct treatment, either by drench or bolus, to ensure every animal gets the required amount of zinc to protect it. In dairy herds drenching every three days would be the norm, but that can be stretched to a once a week interval for dry stock.

Protection from bolus treatment lasts four to six weeks, depending on the brand.

“We have seen clinical symptoms as late as June but usually the risk is gone

by April-May.” *www.beefandlamb.com/ farm/facial-eczema/

Back by popular demand – the ‘wheel’ vaccination planner is being delivered to sheep farms all over the country. It’s all about helping you make the best decisions pre-mating, by planning what sheep performance vaccines will help you achieve your goals, and when you should use these.

Beef + Lamb advice Facial eczema is “a hidden killer”, Beef + Lamb New

If something goes wrong at pre-mating, it can take a long time for lamb numbers to recover.

Zealand says on its webpage dedicated to the disease.

“If you live in the North Island, you probably have a

Getting the timing right can make all the difference to the outcome for your next lambing season. And because of the way biological vaccines are made, you need to plan ahead to ensure you’ll be in the best shape possible.

problem with facial eczema, and it will be costing you,” it warns.

“Your losses are much greater than they appear.

Even when no symptoms are visible, FE can reduce lifetime productivity by 25%. However you can minimise the risk.”

Your vet is your animal health expert. So talk to them today about the best vaccination programme for your farm or visit www.sheepvax.co.nz

The levy-body says breeding for increased tolerance should be the first line of defence and buying FE-tolerant rams will make a big difference in just a few years.

Other methods to reduce FE damage include zinc treatments, quitting stock early, building feed reserves and light rotational grazing. Fungicide sprays before the onset of the FE season can reduce spore counts for five to six weeks.

PLAN FOR SUCCESS:

Sharing information with neighbours, taking advice, and not relaxing precautions too soon are also

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“A few cool nights or heavy rain doesn’t mean

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danger has passed,” warns Beef + Lamb NZ. “Once spore counts rise, pastures remain toxic until the spores disappear.”

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Salmonella ‘horrible and contagious’ confirmed that a number of calves had salmonella. Before results came back antibiotics, electrolytes and probiotics were started on all the pens that were already in and all new calves isolated even if they showed no symptoms. It was “full on” monitoring and treating: any calf who did not respond was moved to a ‘sick bay’. Hard work, heart breaking and time consuming, but worth it: I lost 9 calves, not all from salmonella. I would have been devastated not only emotionally, but financially, if it had been 50% of the calves I raised under contract.

So what went wrong for Trish?

The lessons I have learnt are: • Only buy healthy looking calves: leave others for another “fool” or buy at a reduced price and work a little harder for a successful outcome.

• Treat under vet consultation as soon as any symptoms appear.

Confirm your suspicions with lab tests on faecal samples.

• Keep hygiene levels very high, including protecting the rearer with hand hygiene. Keep infants and children away from sick calves. Salmonella can be fatal for children. Keep fingers and toes crossed for a good outcome.

• And yes, don’t mix calves from different sources prior to sale, although this can still happen if a rearer purchases from several different independent farms. It’s just a matter of keeping each group together until weaned if possible and observing health changes and being quick to act.

Diane Collie, Tikokino, Hawkes Bay

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Re Rural News, December 18, p55, Mixing Calf Lines, where 30 out of a batch of 61 calves died of salmonella.

Surely [rearer] Trish Hosking would have inspected her new calves prior to their delivery to her new, clean calf sheds. Did they show any sign of ill health? As a sole rearer of 500 plus calves this season, my little ones were also subjected to this “horrible” and contagious disease. Starting with the loss of a few highly prized and productive cows on the farm, it came without warning. Vet consultation put us at ease when told it would not pass onto the calves… it did!

All cows were vaccinated immediately, but too late: many of their offspring started showing the signs of salmonella. Faecal samples showing blood were sent very quickly for laboratory testing which

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Rural News // january 22, 2013

machinery & products 33

Speedy baler handles it all easily Southland contractor Jason Hawker says you don’t know what you’re missing until you’ve tried a McHale baler.

Hawker runs Waimea Contracting Ltd in Riversdale and trialled a McHale V660 baler two seasons ago.

“We were pretty happy with the way it performed.

It made a nice tight bale.

We aim to make the tightest bale of baleage that we can. The more in the bale, the better and more cost effective it is for the farmer.”

It also helped that Power Farming is New Zealand’s McHale distributor. Hawker says, in the past, he has had good support from Power Farming. Whenever his drivers had hiccups with a machine, product manager Nigel Prattley and his team were ready to answer questions or shoot out to see them.

With this history of good service behind him, once he’d tried the new McHale model, the outcome was inevitable: Waimea Contracting became the proud owner of a McHale V660.

“The baler was provided by Power Farming in Gore. Shane O’Donnell made the transition easy for us. It was the right choice for a busy company,” Hawker adds.

Waimea Contracting has more than 25 years’ experience. Combined

with parent company Waipounamu Contracting, they offer a wide range of services.

Hawker says to provide the best service, you need the best gear for the job, and the V660 is just that.

“It’s improved our business,” he adds. “There are lots of features to like. It has a variable belt chamber and works well on a range of crops including grass, whole-crop, hay and straw.

“We chose the V660 because it’s a straight baler without a wrapper.

While there is still a place in our business for a balerwrapper combination, there’s a limited window in a day to make bales.

“A baler that is also a wrapper slows you down a bit. We can move around more quickly with just the baler. The man with the wrapper can follow along and can work into the night if need be. We have to try and make the best quality bales while conditions are good.”

Lots of bales in the area are also tube-wrapped and they didn’t need the extra weight of a baler/wrapper, especially on hills.

“The V660 is a very stable baler. When conditions are good we can make around 60 bales an hour. It’s up there with the best of them,” he says.

Most of the hay and straw bales Waimea Contracting makes are 5 x 4, while most of the grass baleage bales are 4 x 4.

The baler copes equally well with straw or baleage with no extra adjustment needed.

“It has a 2.0m pick-up and a bank of 15 knives that is hydraulically engaged from the computer in the cab. You can also use the cab monitor to adjust bale size and density,” Hawker says.

“It also has a drop floor to deal with blockages. It opens the throat and 99 percent of the time it will pull the block through and suck it straight into the chamber.”

The bales are netwrapped. It’s a simple system which copes with most types of net. They’ve now opted for Agpac’s Marathon brand and apply three layers of netting.

Maintenance on the V660 is easy. There’s a chain oil reservoir on the side of the baler, which Waimea Contracting staff top up every morning, and the grease points are all easy to get to.

Hawker says the McHale V660 does a great job and is easy to use.

“It’s driver-friendly.

The monitor is easy to find your way around and we can chop and change staff and there’s no hassle for them all to use it.

We’re really happy with the baler and its ideal for what we need.”

Further information is available from Graeme Leigh on 07 902 2280 or graeme@powerfarming. co.nz.

Jason Hawker and partner Emily Norton.

Jason says his farmer clients like the tight bales his McHale V660 baler makes, and he likes its easy operation.

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Rural News // january 22, 2013

34 machinery & products

Outlander XT excellent value for money B e rn a r d L ilbu r n

Can Am and BRP are synonymous with building top-class recreational vehicles with the brand now taking market share off the established makes with their range of capable Quad bikes.

In 500cc spec, the Outlander XT is a comfortable and versatile midrange machine, that would shame some of the larger

capacity ATV’s. In Canary yellow, you will not lose this machine in the paddock, unless it’s full of Buttercup!

With its 40 hp V twin, fuel injected Rotax engine there is plenty of go, and the Outlander in 500, 650, 800 and 1000cc are the only ATV’s on the New Zealand market with adjustable power steering, called Tri-mode Dynamic Power Steer (DPS) in Can

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Am speak. Sounds like a gimmick? Believe me; it works –with three settings that adjust the amount of assistance provided.

Suspension is key to this machine and it’s a great ride. A torsional trailing arm at the rear provides class-leading comfort and the McPherson double A arm front suspension keeping it all balanced and plush.

Hidden in the front wheels are two big 214mm ventilated disc brakes with twin

calipers and a single disc – the same size for the rear.

With this bike coming from the US, the left hand brake operates both axles.

This provides progressive and controlled braking, while the foot brake only operates the rear brakes as is usual.

With front suspension travel of 229mm and rear, 236mm, there is plenty of room to soak up bumps and ground clearance is 279mm. Solidly built, the 500 XT tips the scales at

Outlander 500 XT.

320 kg, which is heavier than almost all Japanese Quads. This has a bearing on towing ability, and is rated at a class-leading 600kg. Rack capacity is 136kg, and the test unit came with the standard heavy duty bumpers front and rear, which adds to the look too.

The Outlander 500 XT is packed with features,

such as the selectable 2 and 4 wheel drive system, with the trademarked Visco-Lok front differential. This works by detecting slip and diverting traction to the wheel that isn’t spinning, much like the clever All Wheel Drive systems found in expensive cars.

A comprehensive “multimeter” dash display keeps track of fuel, time, speed, hours with trip functions along with a rev counter. The 500 XT comes standard with a 3000lb (1500kg) WARN 8 winch with roller fairlead and remote control.

Useful!

I went on an 80km “cockies day out” around the hills of Hunterville in the Rangitikei, run by the Poukiore Dog Trial Club.

I was amazed at how well the Outlander treated me, and my daughter, who was very sore after being beaten up by a horse the day before.

We alternated between a 400cc Outlander and

the test rig. And the difference is? If the 400 is a Hi-Lux, then the 500 is the latest Range-Rover – such is the difference in power, comfort and ease of operation. We negotiated some hairy slopes on the ride and it was amazing to see the non-Japanese machines scrabble their way up and down the hills with no drama, helped by the excellent CVT transmissions –meaning that the machine is in the right gear every time!

The engine braking on the 500 isn’t as good as its smaller sibling, but still plentiful enough for strong downhill control.

The Outlander on test is in run-out mode, with the new G2 version with altered styling and a few upgrades imminently due.

These machines are very well priced. See your local dealer for a sharp deal, and with the $1000 cash back offer being extended, at $12,450, these well spec’d machines are excellent value for money.

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Rural News // january 22, 2013

machinery & products 35

Fertiliser via the stroke of a key GARET H G I LLATT

FERTILISER SPREADING speed and accuracy have risen for a Timaru dairy farm manager since he began using Tracmap, the company says.

Chris Edge, milking 830 cows on 220ha at Pleasant Point, west of Timaru, first had his whole property digitally mapped by TracMap, then six months ago began using the company’s TracLink farm fertility and nutrient

management system. Traclink allows use of a computer to order fertiliser and to select the paddocks to be spread. The software interface allows the farmer to note the type of fertiliser to apply, volume, supplier, timeframe for applying it, any notes on application and the area it needs to be spread on.

All fertilizer is applied on the Edge farm Temuka Transport, who until January 2012 relied on Edge noting the required fertiliser applications on a farm

Less chaos in feeding stock GARET H G I LLATT

map, and leaving it in their letterbox for the truck drivers to collect.

Now Edge nominates paddocks from a computer map, this information being sent directly to Temuka Transport’s GPS systems.

This has greatly simplified the process, Edge says. “Our internet connection is very slow; I can submit an order in 10 minutes, or five minutes if the internet is quicker.”

Software allows farmers to overlay

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The Chaos Springs Cyclone Multi-Task mobile pumping and mixing tool has made feeding stock supplementary minerals easy, claims Matamata farmer Ben Troughton.

Troughton, who milks 650 cows on a 200 hectare property just out of Matamata, spreads minerals and supplements over pastures to maintain cow condition and performance.

While he normally puts magnesium on pastures before putting animals onto the paddock – other minerals and supplements including lime flower and molasses are put on to pastures. Up until six months ago Troughton dusted magnesium, but found the process left a lot to be desired.

“It was wasteful, inaccurate and it wasn’t exactly pleasant work.”

After deciding that liquefying minerals before spraying them on was the answer he purchased a Cyclone MultiTask six months ago and says he has never looked back since.

“I can work out what goes onto the pasture now pretty accurately and there’s very little waste.”

The multi-task pumping/mixing system uses a special vortex flow design to mix and oxygenate materials used in biological fertilizers. Since getting the multi-function pump, Troughton has spread more supplements onto pasture including lime flour, seaweed and bloat oil.

“I had very little problem with down cows this season and I am pretty sure it also helped with production.”

Troughton says the multi-functional pump system also proved to be a good way to offer stock molasses. “We were looking at installing molasses feeder into shed going at a cost of $30,000 – and this was fairly cheap really.”

In fact, the Cyclone Multi-Task was the least costly multifunctional pumping tool on the market says Troughton.

“It was almost half the price of competitors’ machines.”

With a five horsepower engine he is able to mix the solution spray it onto the paddock and then rinse out the machine in around an hour a day without any hassle.

Cleaning the inside of the multi-functional pump system just requires running clear water through the system which Troughton says was a big draw-card when selecting the system.

“I wasn’t interested in using something that I would need to clean out filters with. The stuff settles in there is pretty terrible to get rid of, but we just rinse it with water every time we use it and doesn’t take long to clean.”

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previously made orders as the basis of a current order and Edge says this also cuts down the time needed to order fertiliser.

“You can tell exactly where you’ve put on fertiliser in the past and you can use that for the basis for where it needs to go.”

Besides being able to highlight paddocks for fertiliser application, the farmer can use a software function that allows him to exclude areas in paddocks where he doesn’t want trucks to go.

Determining these locations is easier with Traclink than it was off a paper map says Edge. “The Google Earth map is pretty fantastic so you can work out where all the wet spots in the paddock are 99% of the time.”

Edge hasn’t used this function fully; “We will put that to the test in late autumn when there are areas we want them to dodge out of.”

Tel. 0800 872 262 www.tracmap.co.nz

Rural News // january 22, 2013

36 machinery & products

Quad bike safety training aimed at farmers b e rn a r d lil bu r n

Recent publicity around quad bike and ATV accidents has brought ATVs and their riders’ safety under the spotlight again.

Land Based Training realised there was a gap in the market for a practical quad bike course that updates farmers with current legislation – other than the New Zealand Qualification Authority

(NZQA) Unit Standard course, which can take up to 3 days with at least 10 hours class room time.

Land Based Training (LBT) is a Private Training Enterprise (PTE) with its headquarters in Wan-

ganui and offices and tutors based throughout the North Island with the ability to outsource work in the South Island. Managing Director Rob Gollan, who is also a farm consultant, says:

“Farmers don’t want to be taken out of their businesses for two or three days to do a course, which is basically teaching them something they already know how to do. We identified a gap in the market,

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and with demand from our clients, saw there was an opportunity to develop another method of conveying the information to our existing clients, as well as providing a service to the farming and service sectors.”

So in consultation with the Ministry of Business, Innovation and Employment (formerly the Dept of Labour), the company in conjunction with existing corporate clients and tutors, developed a one day course that is held on farm. Ideally each course has at least 8 participants and covers what employers and employees obligations are under the HASIE Act. It also gives examples of what happens when lapses occur, what the penalties are – as well as the costs of rehabilitation.

This is done through a Power Point presentation that takes about an hour and a half, and involves no writing or form filling for the participants.

Then it is on to the quads, with the tutor providing information and – if needed – instruction on techniques for different things, as well as eventually assessing.

The course covers all aspects of quad riding, such as towing, active riding, riding on undulating terrain and with

mounted loads.

“It’s not about reinventing the wheel,” Gollan says. “The aim of this one day course is for employers to make sure that their staff are aware of the laws, are competent and safe.”

The Ministry of Business, Innovation and Employment has had their inspectors review the course and have rubber stamped this initiative.

All farm employers and employees need to come to terms with their requirements under the Health and Safety in Employment Act (HASIE).

The Act states: Every Employer shall take all practicable steps to ensure the safety of Employees while at work.

Land Transport fact sheets state that helmets are now compulsory, and all riders must wear them. Unfortunately, this is often not adhered to. If there is a quad bike accident both employer and employee can be prosecuted HASIE and the fines range up to $25,000 for individuals, to $250,000 for companies.

The day commences at 10.00am and goes through to around 3.00pm at a cost competitive rate.

Land Based Training, 0508 TRAINME – 0508 872466

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

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Rural News // january 22, 2013

machinery & products 37

Ripper slashes cultivation time ga re t h gillat t

A VERSATILE 9-tine Jumbo Buster Ripper has slashed cultivation time by 60-90 hours for Northland farmer Sam Burke.

Burke milks 330 cows on a 190ha dairy farm on volcanic soil-based rolling hill country 40 minutes north of Dargaville.

The heavy soil can be difficult to farm in winter and often comes into spring with a degree of soil compaction, especially as Burke’s herd and replacements are all wintered on the property.

Burke uses cropping to aerate the heavily compacted soil and puts 15HA of the property into brassica and turnips every year.

“Once you get into maize you need to a lot of other people, with turnips and brassica you can just jump on the tractor yourself.”

Burke previously used discs, a rotary hoe and a

spring tine to prepare paddocks for seed, but two seasons ago he bought a 9-tine Fieldline Ripper from Glenbrook Machinery in Pukekohe (now sold

by Fieldmaster) because he felt the discs were not resolving soil compaction issues enough. He has been able to slash the time spent on the tractor preparing soil.

“I had to double overlap with the discs and then do a run back the other way. With the ripper I just go over the paddocks once, I think the ripper would cut down the time I needed to spend on the tractor by 60-80 hours per year.”

Burke has used just the ripper and spring tine cultivators to prepare soil for a very late crop of turnips with a good crop, but says he has got a better followup grass growth after also using a rotary hoe.

While the Jumbo Buster Ripper can work

soil with all nine tines, Burke says it was easy to remove two of the tines to allow it to be more feasible for his 90HP Case CX-80 to tow it through the heavier volcanic soil.

“The guys at Glenbrook thought I would probably need to take off four tines for the tractor, but if the soil is right and you don’t have too much matted kikuyu then my 90HP tractor doesn’t have too many problems with it. Seven tines actually provide a good spacing for this type of soil. It rips it all open while letting it get worked over really good.”

The machine’s versatility is further expanded by its mount for a hydraulic toplink, which according to Burke, allows for better fine tuning while working.

“If the soil is thicker you can raise-up the ripper without too much effort, it makes the implement really versatile. If you run over a mat of kikuyu then

New Ravensdown chief Greg Campbell has taken over from former long-serving CEO Rodney Green as head of the billion-dollar farmers’ cooperative Ravensdown.

Campbell comes into the role having been the CEO of Ngai Tahu Holdings Corporation and with significant international experience as a chief executive. He is in on the boards of a number of companies and has previously been on the board of PGG Wrightson.

He says the co-operative structure of Ravensdown appeals to him, as the company is not driven by share price or shortterm focus.

“Essentially the profits are returned

you just need to lift it up, there’s no need to back the tractor up and start again.”

Burke plans to retrofit a crumbler-roller to the deep ripper to further speed up the cultivation process.

“I think the crumblerroller could replace the rotary hoe and I could just use the deep rippers and a spring tine to prepare ground.”

Tel: 09 237 1500 Northland dairy farmer Sam Burke estimates the 9-tine, Jumbo Buster Ripper has cut his cultivation time by 60-90 hours a year.

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to our owners and customers. We are able to invest in products and services that will underpin the company, our owners’ businesses and the future of New Zealand agriculture. I have a passion for the agricultural industry and am excited about taking up this new role.”

Campbell says his initial focus is to meet as many staff, suppliers and shareholders as he can.

Chairman Bill McLeod says in Greg Campbell the co-op has someone: “who will continue the innovative direction Ravensdown has taken for some years, while maintaining the culture we have with customers, staff and suppliers.”

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Available from your nearest Cydectin Oral stockist www.cydectin.co.nz

ORAL DRENCH FOR SHEEP

nd 1024, New Zealand. Tel: 0800 650 277, Fax:

® mark of Pfizer Inc. or its 0800 628 629. Cydectin is a registered trade

subsidiaries.

PAH 1043

Auckla 3, Pfizer House, 14 Normanby Road, Mt Eden, Pfizer Animal Health New Zealand Limited; Level & A7388.

A6204 No 1997 Act ACVM the to nt pursua Registered

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