Rural News 16 March 2013

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industry winners

fast and easy

First timers triumph at the Dairy Industry Awards. pages 42-44

Front-and-rear mower combo halves tractor time. page 53

RuralNEWS to all farmers, for all farmers

march 19, 2013: Issue 534

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page 50

www.ruralnews.co.nz

Rush to slaughter lambs p e te r bu r k e peterb@ruralnews.co.nz

A MASSIVE increase in lambs to slaughter in the North Island has resulted from farmers rushing to minimise feed demand. Killing space at processing plants is under pressure and farmers have to queue to get stock slaughtered. B+LNZ’s director of economic service, Rob Davison, told Rural News the lamb slaughter is 22% ahead of this time last year. Normally in the North Island at this time of year about 45% of lambs (for the year ended September 30) would have been processed. “Currently we’ve slaughtered about

52%, which shows the drought has caused the early slaughter. Also lambs are much lighter, and the other week in the North Island lambs averaged 17.25 kg – about 1kg lighter than the same week last year. That gives us a feel for where the drought is and the impact it’s having.” Beef is in a similar situation, also linked with the impact of the drought on dairying. Davison says last season the cow cull was down 110,000 on predictions because the good season saw a greater number of cows get into milk

with low empty rates. But drought is causing the cull cow slaughter to run 70% ahead of last year. The drought’s extent shows notions of having ‘summer safe’ areas don’t exist, Davison says. “If the drought persists, one consequence will be that capital stock will be slaughtered at quite light weights. Next season’s ewes won’t be in such good condition so lambing percentages will be down. “Last spring it was so good and 5% of the lambs were born to hoggets, a

pretty high percentage. But this year the number of hoggets mated will be down so that’s going to affect next season’s lamb production.” Davison says compared to the North Island the South Island has fared a bit better; lamb slaughter weights there are similar to last year. Lambs are making about $74 a head, but if they had the condition they had a year ago they would have been 1kg heavier. The net effect of lighter lambs is to knock about 6% off lamb receipts. • Meat companies challenged pp 4-5

Minister seeks better way on water WHILE THE drought worsens, Environment Minister Amy Adams has launched a consultative document with proposals to reform the management of fresh water. The launch took place in Horowhenua where commercial growers are especially hard-hit by the drought. Adams says water management has become more and more contentious, divisive and litigious -parties vying for a winner and a loser. The proposed reforms seek a more collaborative approach. See pages 16-17 for details

Two chips off the same block. Just like you, we know nothing’s achieved without some element of risk. Instead of doing everything under the sun to avoid it, we stare it in the face. So if you want to talk about how to recognise, understand and manage risk, you won’t find anyone more like-minded than us. Ask around about us, or for some advice call 0800 366 466. FM 02 FMG 020 09 9/A /A

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Nasties lie in wait NASTIES ARE waiting to strike farm animals when the drought breaks, a veterinarian warns. Anthony Oswald, Taihape, told Rural News the biggest threat is worms, and in some regions facial eczema could pose a problem. In both respects the drought has exacerbated the problem because pasture covers are low, making ideal conditions for worms and facial eczema. Oswald says little larval development has occurred during the past few months, the extreme dry causing the eggs to be sitting on the ground. Though many will not survive, enough will be there to cause a ‘worm explosion’ when rain comes. “Once you get some moisture that lets you grow some grass, it’s also an ideal environment for these larvae to develop up to the infective stage,” Oswald explains. “It’s still relatively warm and there’ll be a significant number of eggs waiting to go. Once the moisture happens we tend to have high worm challenges, in particular the Barber pole worm (haemonchus contortus). This… sucks blood and sheep become anemic quickly.” Oswald recommends farmers treat their stock – especially lambs and two-tooths – with a preventative. Farmers should also be on watch for facial eczema in areas where this is a known problem. Spore count monitoring is essential. • The Big Dry - pp 6-9


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Rural News // March 19, 2013

news 3 issue 534

www.ruralnews.co.nz

News ������������������������������ 1-23 World ������������������������ 24-25 Markets �������������������� 26-27 Agribusiness ����������� 28-31 Hound, Edna ������������������� 34 Contacts ������������������������� 34 Opinion ����������������������� 34-38

Shipping it north About 1000 bales of straw were loaded in three cargoes out of Timaru last week bound for Napier and Wanganui as Federated Farmers representatives in Canterbury facilitated efforts to get extra feed into the North Island. Mid Canterbury Grain & Seed chairman David Clark says the initiatives are commercial operations, but prices are being kept reasonable with no-one seeking to take advantage. “The baling contractors we’re working with are acting a very even handed manner, but they’re also facing rapidly increasing demand locally… make no mistake, the surplus feed in the South Island will run out so if you can buy feed from your normal commercial supplier, do it.” Rail-freighted containers of grain are another option being investigated. • See more stories on the drought pages 6-10

The ship Baldur, which normally services the Chathams from Timaru and Napier, leaving Timaru port last week with hay bound for the North Island.

PETE R BU R KE

Management ����������� 39-45 Animal Health �������� 46-52 Machinery and Products ������������������ 53-61 Rural Trader ���������� 62-63

Head Office Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 Postal Address PO Box 3855, Shortland Street, Auckland 1140 Published by: Rural News Group Printed by: PMP Print Contacts Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 80,767 as at 31.12.2012

PGP passes, but not without challenges A N DR EW SWA LLOW andrews@ruralnews.co.nz

SHEEP AND beef farmers have backed Beef + Lamb New Zealand’s proposal to use $19.7m of reserves to co-fund a Primary Growth Partnership. On a weighted turnout of 21.3% of the potential, 77% voted in favour of the proposal as put in Resolution 3 at the levy body’s annual meeting, held in Wanaka March 8. Chairman Mike Petersen welcomed the result, but not the turnout. “It’s disappointing,” he told Rural News. The poor turnout was despite the resolution attracting considerable media attention prior to the annual meeting, stirred up by levy-payers who believe meat companies should be doing more to raise farmers’ returns, and that meat companies and State Owned Enterprise Landcorp shouldn’t have had a vote on the issue. At the annual meeting, Petersen stressed the need to keep the debate to the resolution, not wider industry issues or the constitution, which is

why the companies and Landcorp had votes. Nick Perry, Woodeville, who admitted he was only at the annual meeting because he was a Glammies finalist, was one of several who spoke from the floor against the resolution. “Not because of an emotive protest, but because I feel Beef + Lamb and other industry participants have their priorities wrong.” Behavioural change by farmers is the key to improving sector returns, he believes. “I cannot see the PGP effecting behavioural change at farmer level. The only thing it will do is throw more lamb at a processing system that has nothing but roller-coasters in front of it.” Petersen’s response was to reiterate the Red Meat Strategy finding that 40% of the gains to be made in sector productivity are behind the farm gate. “Across all of New Zealand, on every class of land, irrespective of the age of the farmer, irrespective of the level of debt servicing, there is a huge variation in performance.” The PGP is about efficiency, which

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could be about producing more, or producing less but of higher value and/or at lower cost. “It’s not about product for product’s sake.” Brent Robinson, Wyndham, suggested there’s already more information available on improving productivity on farm than farmers are able to “uptake.” That was echoed by David Eckhoff, who admitted he was a “wee bit torn” as to which way to vote. “All the information is out there that you need to improve your on farm productivity, and profitability, if you chose to find it…” Speakers for the resolution included Federated Farmers board member Jeanette Maxwell, South Otago farmer Alex de Boer, and Waitaki Valley farmer Walter Cameron. “I only support it because it’s a third of the whole Red Meat [Sector] Strategy,” Cameron said. • Petersen challenges meat companies… see pages 4 and 5 @rural_news facebook.com/ruralnews

THE NEWS is mostly bad in B+LNZ’s newly released mid-season outlook, compiled about a month ago. It estimates nationally farm profit before tax for 2012-13 will fall 54 % on last season to an average of $73,000, largely due to sharply lower lamb prices and, as a consequence, a 27% drop in sheep revenue. B+LNZ economic service director Rob Davison says lamb numbers were up because of a 123% lambing last spring and more hoggets producing lambs. “However, this was not sufficient to offset the lower lamb price and the impact of drought. The forecast average lamb price of $85 per head is down 25% from last season’s $113.60, which was the second highest on record. “This has understandably flowed through to farmers’ bottom lines, with the result that profit levels will effectively halve for the season ending September 30, 2013. In inflation-adjusted terms, this returns profits to levels similar to the first decade of this century.” Davison says maintaining prices for lamb will be challenging given Europe’s debt crisis is far from solved and growth in the region is almost nil. Concerns remain about US economic prospects, given its fiscal challenges. And China’s economic growth has slowed to the lowest rate in a decade, though still at about 8%. “Cattle returns are predicted to drop 8.8%, but the outlook is relatively positive, thanks to the supply situation in the US. Three years of drought in the US has reduced the country’s total cattle numbers to 89.3 million – the lowest since 1952. Significantly, the beef cow herd is the smallest in decades and it will take years to rebuild breeding numbers.”


Rural News // March 19, 2013

4 news Beef + Lamb New Zealand chairman Mike Petersen challenged meat companies at its annual meeting in Wanaka this month. “Farmers want to hear for themselves the gains made by companies in the procurement and market areas; not in PR speak, but real numbers of real gains making a dollar difference to returns to farmers.” Rural News put this to the four big meat companies and a couple of others. Here are their responses.

Producer groups key for ANZCO ANZCO FOODS puts producer groups at the top of its list of procurement and marketing initiatives making a dollar difference to returns to farmers. ANZCO operates (and has done for many years) a number of specific farmer producer groups strongly aligned with work that will ultimately be done as part of the ‘Collaboration for Sustainable Growth’ PGP scheme. The producer groups focus on: Continuous improvement: collectively, the producer groups achieve continuous improvement through recording best practices, business development projects, taste testing, benchmarking and collective learning. Producers

also receive feedback from ANZCO and its customers, ensuring a strong market focus is maintained. Communication: through working together to understand each other’s strengths and challenges, individual producer groups can network and develop in this environment. Customer interaction: members appreciate the chance to spend time with customers and hear firsthand what is happening in the market place and what flow-on effect is likely in New Zealand. Equally, producers are able to let the customer know what is influencing decisions made within the farmgate. Critical to the success

Mark Clarkson

of the groups has been the producer group committees, made up of a combination of producers and company personnel, set up to ensure producers are involved in decision making on developments of the producer group direction. A testament to the success of our producer

groups are the long term partnerships between ANZCO and UK supermarket chain Waitrose, and Japanese restaurant chain Aleph, for which dedicated producer groups have continued to grow in the 12 years they have been in place. Market Gains ANZCO’s Foodplus Programme In addition to its contribution of $1.3 million to the ‘Collaboration for Sustainable Growth’ which focuses on activity ‘behind the farmgate’, ANZCO has also committed $43.5 million to a second PGP programme which will be jointly funded by the

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Government – Foodplus, focussed on innovation beyond the farmgate. Foodplus will focus on identifying opportunities to create new products, with particular concentration on parts of the beef carcass that currently generates less value. The programme’s goal is to

reposition the market’s traditional and narrow perception of meat products through the development of novel, sustainable, value added products in food, ingredients and healthcare. Development of niche lamb brands An example of market

area gains has been the launch by ANZCO and its market partners of two niche lamb brands into Europe and the UK respectively within the last 18 months which link specific customers and groups of producers while extending the market reach of New Zealand lamb.

Alliance first for yield payments ALLIANCE GROUP chief executive Grant Cuff was last week visiting customers overseas, so a spokesman responded to Petersen’s challenge. “Alliance has made a significant investment in procurement and market areas to benefit its 5000 shareholder suppliers. In 2008 Alliance Group became the first processor in New Zealand to offer yield payment contracts to all its suppliers. The ‘yield quality contract’ provides for yield-based premiums over and above the competitive price schedule, currently up to $6.00 per qualifying lamb. The contract rewards quality and promotes committed supply. Yield has increased 8% since 2002 and we are regularly investing time and energy into improving this.

Our investment in technologies such as VIAscan and the Central Progeny Test trial is paying dividends for our suppliers and the market in general. VIAscan provides our suppliers with detailed information on each carcase, assisting them to produce animals that meet the tight weight and quality specifications required by customers. CPT provides all farmers with access to good objective scientific data to assist them in identifying superior genetic traits when making their breeding selections and meeting the market’s requirements. We have reduced our reliance on traditional western markets such as the UK and are developing markets in China and latterly new markets such as

Brazil. This has changed the marketing mix and provided the opportunity to trial and introduce new products. These emerging markets, China in particular, have increased the value of previously low-value items and made viable a number of new products. This has resulted in improved recovery and yield of saleable products from each animal. In real terms, that means 10% more is being saved in edible form for venison, 15% more edible mutton and up to 20% saved in edible form for lamb. Having invested in these markets, and secured long standing relationships, we are looking to introduce higher value items. We’ve also chosen to co-brand with to page 5


Rural News // March 19, 2013

news 5

Alliance first from page 4

our in-market partners to ensure the product remains connected to Alliance Group. The group has made considerable gains through increasing its volume of chilled lamb into a number of markets in order to capture – while preserving – the margin over frozen lamb. Alliance also invests heavily in R&D in a range of areas to drive longer shelf life and improve taste and tenderness of our products. Our R&D and investments in technologies such as hoofprint ensure

we remain aligned with high paying customers. Regrettably, the increasing value of the New Zealand dollar has negated most of the improvement in market prices achieved over recent years. Today’s inmarket returns are about $50 per lamb higher than in 2009. Lamb prices to farmers, however, are similar to 2009. About $50 per lamb has been lost to New Zealand farmers due to movements in the value of the New Zealand dollar over those four years.

Meat value gain 900% – Blue Sky it is impossible to answer Mike Peterson’s enquiry with meaningful statistics that can be understood by all, says Blue Sky Meats’ chairman Graham Cooney. But let’s have a go. When Blue Sky Meats (BSM) commenced operating in 1987 it paid about $20 for an average lamb. Of that about $12 was pelt value and $8 was meat. In 2013 the meat value is about $75 – an increase of at least 900%. Sure, the lamb is bigger and the figures quoted are not inflation adjusted but the trend is arguably better than any other agricultural product. No one is pretending such a figure is at a level

Graham Cooney

satisfactory for farmer incomes. But remember meat is now being asked to virtually provide 100% of the farm income. It used to be about 50% with the rest coming from wool. So what has created this increase? In no particular order: Technology: the operation of our processing room, the products produced and the yields being

achieved bear no resemblance to even 15 years ago. Chilled product: a further form of technology but worthy of being on its own. Brands: BSM has two distinct brands that are known and respected. Fresh cutting: there’s been a huge change from the days of bringing frozen carcases back for cutting. But it does provide its own set of challenges. Processing decisions are made daily for a wide range of raw product and often in the absence of forward sales. Tailoring product to customer demand: unfortunately there is often a huge divide between what

Creating value Silver Fern Farm’s focus SILVER FERN Farms chief executive Keith Cooper says the company’s investment and business plan is focused on creating value in the market and enabling farmers to create value on farm. 1. Co-ordinated in-market behaviour Three joint ventures aimed to create a strong brand position in premium markets and use scale: The NZ Lamb Company in North America, Alpine Origin Merino, Farm Brands Ltd. International brand building based on quality attributes

identified within our BeefEQ programmes to be launched October 2013: Angus, Hereford and Reserve programmes. Investment in Keith Cooper offshore marketing offices and personnel in Belgium, Germany, UK, Hong Kong, Middle East, Japan, Korea, USA and Canada enable us to interact direct with in-market customers plus a further $11.6m spend in 2012-13 on brand development and market-

ing initiatives to build brand equity, channels to markets and market development. Developing our consumer-focused retail lamb and venison brand in New Zealand to drive a greater proportion of revenue through premium value branded products. These have achieved year-on-year growth of 40% since launch in 2009. 2. Efficient and aligned procurement

Backbone, Lamb Plan and Dairy Bull Beef programme supply plans mean 10% of livestock is now contracted and farmers are using this mechanism to manage volatility in their businesses and deliver certainty and against market requirements. These initiatives have given another option for farmers to manage their cashflow, without capital investment in stock in the case of Lamb Plan, while we have the ability to better manage stock flow and supply to our markets.

the customer wants and the raw carcases provided to the plant. Dealing direct: BSM deals directly with a multitude of small outlets around the world who do not want to deal with a large exporter, often due to the smaller volumes they require.

Procurement: for at least 25 years BSM has procured at least 90% of its livestock under a contract system that specifies the date of delivery and the numbers contracted on that date. • Rural News also invited AFFCO and Ovation to respond, but they did not.

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Rural News // March 19, 2013

6 news: the big dry

Support trusts keeping busy PAM T I PA pamelat@ruralnews.co.nz

ABOUT 20 calls a day are being received by the Waikato Rural Support Trust, mostly from young farmers concerned about their financial position. But in Northland the desperate feed situation is prompting most calls to the support trust, which has set up its own feed line.

Mike Eagles, chairman of Northland Rural Support Trust, says beef farmers are getting rid of stock but he also knows of some dairy farmers getting rid of capital stock. “That becomes a serious issue long term,” he says. “Previously with a drought you could bring feed in from other areas, but this time everyone is getting hammered at the same time,” says Eagles.

“So people are getting a bit wary of releasing their excess feed in case they find they are in the cart themselves. “We’ve had a huge number of calls in comparison with the past. People are pretty resilient but there’s a lot of stress going on. Our facilitators are trying to help people and get them good advice and get rural assistance payments to them.”

The payments are only “to put food on the table” for those with no income. “We are a relatively new trust, we’ve only been going five years so people are more aware of us; they know they can get help. We can’t do cash handouts or anything, it’s down to the government as to who they assist in the end but it definitely seems to be hitting harder than in the past.” This is Northland’s

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third drought in four years and Eagles says they have only just pulled back from helping people from the 2010-2011 drought. “Now we’re straight back into it before anyone has had the chance to build themselves up again.” The trust is running its own feed line. “The prices of palm kernel have gone through the roof,” Eagles says. Waikato Hauraki Coromandel Rural Support Trust chairman Neil Bateup says mainly young farmers and sharemilkers are checking if they eligible for rural assistance payments and applying if they are. “The financial situation is the major issue, with a lot of people dried off or drying off, so income will be quite poor for the next few months,” he says. In contrast to Northland, feed is not prompting a lot of calls to the trust. Bateup’s advice to farmers is to “keep talking to their advisers, their bank manager and any other rural professionals”. “Keep talking to one another, go to some social

events, join with your neighbours and friends in barbecues… and it will rain one day.” Derek Spratt, Bay of Plenty Rural Support Trust chairman, says they have had 13 calls so far and their facilitator will visit all bar two of those to discuss rural assistance payments. The other two were hanging in to see what happens. “Feed and where to get it is a big concern, but

that will be all through the North Island,” he says. People are moving any stock they don’t need off farms to “take pressure off what bit of straw is left in the paddock”. Some Bay of Plenty areas are desperate and in others “there’s feed around but not a lot”. Feed queries are being directed to the Federated Farmers website. @rural_news facebook.com/ruralnews


Rural News // March 19, 2013

news: the big dry 7

Sheepmeat saved by China PETE R BU R KE

MANY SHEEP and beef farmers will need to arrange bank help to carry them through the drought, says Professor Keith Woodford, Lincoln University. Woodford, professor of farm management and agribusiness, expects lambing percentages will

be right down next season as a result of the drought. “We’ve known for long time three things are really important to lambing percentage: one is genetics and there’s no doubt we have better genetics; second is the live weight of ewes at mating; third is whether the ewes are on a rising plain of nutrition.

over the next month.” Looking at our sheepmeat markets, Woodford says if wasn’t for China, New Zealand would be in a mess. The Kiwi dollar’s strength against the Euro and the pound sterling is impacting farms, depressing returns to New Zealand farmers from European markets. “[But the] sheepmeat

“So if the ewe is gaining live weight at the time she’s mated then she’s much more likely to give a multiple ovulation. I can’t put numbers on it at this stage…. I would expect the lambing percentage in August-September to be down quite a lot. Having said that, the rams aren’t there yet and a lot depends on what happens

NE

t n a t is s e R le t t a c … s e t i s a r pa

Horowhenua commercial grower John Clarke checks some of his newly sown brassica seedlings. Less than half his 240ha operation is irrigated and at this time of the year he would be expecting rain to grow these crops. Clarke has farmed in the area for 35 years and says the current drought is up there with others he’s experienced. The lack of rain has caused him to reduce the hours of some staff. Crops will come on late and quality will suffer, causing a shortage of vegetables. The Clarke farm irrigation helps grow lettuce, celery and spinach.

PKE demand and prices soar

market in China has been growing incredibly rapidly, more due to good luck than good management on our part; it’s not demand we’ve created, it’s a demand the Chinese have created.” Woodford says China by volume is now our biggest market for lamb – a market for cuts once a bit difficult to sell.

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A MAJOR importer of palm kernel, J. Swap Contractors, says shipments are arriving frequently, but there’s huge demand. “We can’t get it here quickly enough,” says Stephen Swap. Most of it goes to those on contract, but they are still selling spot, at about mid $300 a tonne. Demand is coming from everywhere – greatest from the mid North Island. “We are quite a way behind with deliveries due to delays with ships and other things”. Ship delays go hand-in-hand with the business “but we are going through palm kernel more quickly than anyone anticipated”. Nevertheless Swap’s advice to farmers is “call us definitely – there’s no doubt there are delays on deliveries, but we always work seven days a week. We are getting through as fast as we can.” Imports were stepped up as the drought emerged but “it’s a moving target all the time,” Swap says.

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Rural News // March 19, 2013

8 news: the big dry

Bees also starving p e te r bu r k e

BEES FACE starvation and, surprisingly, drowning as a result of the drought, says John Hartnell, head Federated Farmers’ bee group. He told Rural News drought limits bees’ ability to collect nectar; this is now evident in the South Island, the clover crop being well down on previous years. “That was simply a reflection of a very cold spring and a rapid change to an almost totally dry environment that’s been rolling on ever since. Without moisture we

don’t get the flowers and, in particular with clover, it won’t yield any nectar and the bees go hungry. It’s not a great position.” Moving into autumn, bees have a critical need for good pollen for next year; that’s the other challenge beekeepers face: normally there are yellow flowers available such as gorse, but it’s too dry and such flowers have not been there for bees, Hartnell says. Bees need water and, because their normal sources are dry, they will seek it at animal drinking troughs. But troughs are a hazard.

“At a trough the bees look for something to land on so they can drink. But often they don’t find a stable place and because they can’t swim they drown. We have bee losses with them trying to access water.” Hartnell says every year is a

challenge for the honey bee. “In the spring they need good pollen to build the hives up and then they need the nectar flow to come in at the right time. This year, particularly in the South Island, that didn’t happen. “In the North Island it was slightly different. The Waikato has had a great flowering of white clover and a lot of bees have done relatively well in those areas, but it’s spasmodic in the other regions, especially on the east coast of the South Island.”

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Rural News // March 19, 2013

news: the big dry 9

Rain will bring deluge of challenges SU DES H K I SSUN sudeshk@ruralnews.co.nz

DROUGHT RAVAGED dairy farmers should not expect immediate respite when the rain arrives. DairyNZ warns rain will rot pasture, leaving cows underfed and give rise to facial eczema. Farmers will need at least three weeks of supplements (100kgDM/cow) to feed out after rain, or on very dry farms up to 160kgDM/cow. DairyNZ ‘Beat the Heat’ fieldays are helping farmers deal with the drought and preparing them for the postdrought period. Marketing manager productivity Warren Twohey says turnout to the fieldays has been good. About 100 farmers attended days AgResearch’s Tokanui Research Farm in Te Awamutu last week, 100 in Gordonton and 70 in Morrinsville. The events give farmers confidence to make key decisions as they face prolonged dry weather, Twohey says. “It also gives them opportunity to talk to fellow farmers and get an understanding of how their neighbours are dealing with the drought,” he told Rural News. He points out problems don’t end when the rains arrive. “When it starts raining, it doesn’t

mean everything is hunkydory. It could be two to three weeks before grass starts growing.” So supplements are essential. DairyNZ says past experience shows this ‘rot down’ time is when cows are most underfed during a drought. “As pasture can halve after rain, cows can be severely underfed and will require 50-75% of their intake from supplement. If feeding out before the drought, the amount required after rain will at least double in the first 7-10 days, reducing as pasture cover improves.” Pasture management is also critical when the autumn rain arrives. After autumn rain and very rapid grass growth, slow herd rotation will keep pasture cover high. But it warns not to speed the rotation to fully feed the herd, as this will hinder pasture growth. The rains will also bring animal health problems such as facial eczema. Maintaining a low zinc dosage is then worthwhile. “When the rain does come, spore counts are likely to rise dramatically and by maintaining a low zinc dosage the cows are already adapted to zinc should zinc dosages need to be lifted.” Farmers are also advised to go easy on copper supplementation,

especially if the cows are fed PKE. If feeding out PKE, mind the impact this may have on copper levels in the cow’s liver. “Avoid routine copper supplementation for cows fed PKE in large amounts over long periods without checking the cows copper status first.” With cull cows being

sent to the works now is a good time to monitor copper status via liver biopsies to ensure copper is within acceptable limits. Dairy farmers get cow condition tips at a DairyNZ drought seminar held last week.

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Rural News // March 19, 2013

10 news

Time to get busy on water shortage –Kelly pe te r bu r ke peterb@ruralnews.co.nz

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THIS DROUGHT is one of the worst seen by Landcorp chief executive Chris Kelly in his half century in agriculture. The problems are not being overstated, and the nationwide extent of the dry leaves few regions unaffected, he says. He’s not surprised at reports that the drought will knock a billion dollars off the economy this year. It will have a significant effect on Landcorp’s bottom line. The extent of this drought limits the options available to farmers, Kelly says. “If I was a single farmer in the middle of Hawkes Bay, I would be nearly crying now.” Kelly’s been in Canterbury and says the irrigators are going flat out and only in the deep south can you see green anywhere. “The other worry is that we can’t see any immediate relief on the horizon…. Sheep are going into tupping on a declining plain of nutrition. They’re losing weight, which means lambing percentages will be down next year. Some of the improved pastures on the hill country – where it’s hard to cultivate – will be affected and some will be possibly irretrievably destroyed.” One long-term cost of the drought could be the

need to re-grass paddocks – even recently sown ones, and there are concerns some of the newer pasture species are more vulnerable to drought, he says. “They grow better when the weather is good and have higher ME. But some are certainly a lot more vulnerable, although some pastures like chicory, plantain and lucerne have deep rooting systems and are not so bad. “However, some of these new hot species tend to shrivel up… earlier than the traditional stuff. While chicory recovers well, so do the weeds.” Landcorp has shipped truckloads of sheep to the South Island from its North Island farms and has already dried off many dairy herds. “We are pretty much down to capital stock now. We are bringing pregnancy testing forward a bit so we can get empty cows away as quickly as possible.” Dairying’s advantage is that you can dry cows off and continue to feed them on supplements. But he acknowledges feed is expensive. “If you have to buy it, PKE has gone up from about $250 a tonne to something like $350. Farmers are shipping barley and wheat

Landcorp’s Chris Kelly

straw to the North Island; it has almost zero nutrition value but at least it’s bulk.” The drought has highlighted the need for more irrigation. “If there is an encouraging note… it’s that the Government is committed to getting more irrigation schemes going. We waste about 96% of the rain that falls because it flows out to sea. “[We need] water storage and effective use of [rain]. I’ve just come back

from Canterbury… and where a centre pivot irrigator has gone around you can put one foot in bloatprone clover and ryegrass and the other foot in bare dirt. That’s how profound the effect of irrigation is.” Kelly says the best place to dairy farm now is irrigated Canterbury. Landcorp plans to spend up to $5 million over two years on irrigation in the region and will double its cow numbers. @rural_news facebook.com/ruralnews

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Rural News // March 19, 2013

12 news

Beef + Lamb voting scheme questioned P E TE R BU R K E

OHAKUNE FARMER John McCarthy, who missed getting elected to the B+LNZ board, says he accepts the vote, but sees it raising a raft of issues and shortcomings in the industry. McCarthy was defeated by the sitting member for

the western ward of North Island, Kirsten Bryant. He congratulates Bryant but is sorry he can’t represent the interests of local farmers. McCarthy has renewed his attacked on the meat processing companies saying he doesn’t trust them and that they have let farmers down. They

will continue to rape and pillage farmers, he says. Of greatest concern to McCarthy is the democratic process. “The voting return was 24% and this represented approximately 50% of the sheep and beef industry. What that says to me is that I didn’t get the meat company vote and proba-

bly not the corporate one either. Personally I am quite pleased if that is indeed the case.” He asks how, on this basis, can a family farm expect to be heard in a meaningful way? He says with the PGP vote due soon, this is important. “It would seem to me that a combination of

John McCarthy

Landcorp, meat companies and the odd other corporate vote [results in] a done deal for Beef + Lamb. This is quite obviously an abrogation of due process. No wonder that in my election only 24% bothered to vote; the smaller unit is disempowered under the current rules and knows it. I am asking the new Minister of Agriculture what he considers is an acceptable voting percentile to justify a mandate for change. Also does he feel it is acceptable for Landcorp and the meat companies to even have a vote? It will be interesting to hear the response.” McCarthy says there is something morally repugnant about the spin perpetuated especially by our farming leaders about our supposed ‘brave new world’. This ignores the horrible prospects facing their farming constituents, he says.

“After this year, with its combination of drought and meat company savagery, a lot of these smaller units will be in serious financial and emotional trouble. A lot of it has been caused by the inability of politicians and farming representatives to curtail meat company antics. It is an anathema that decent, hard working New Zealand families are being done over in this way and we continue to get the same timeworn platitudes regarding exchange rates and the like.”

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Rural News // March 19, 2013

news 13

Drought stuns spread of killer kiwifruit disease PAM TI PA pamelat@ruralnews.co.nz

WHILE DEVASTATING for pastoral farming, the drought has at least one up-side: it has slowed the advance of the kiwifruit vine killing disease Psa. “From a Psa perspective we have been very fortunate with the hot, dry summer with less Psa movement and impacts within orchards,” Kiwifruit Vine Health (KVH) chief executive Barry O’Neil told Rural News. “Psa needs rain and lower temperatures to develop, so in general the dry hot summer has seen lower levels of Psa than we saw last summer and therefore all varieties are holding up reasonably well.” O’Neil says the new gold variety G3 has been going well over the summer. “However we are very conscious that come autumn with colder, wetter weather some progression of disease especially on

vines under water stress and carry- are associated with Psa. “Some of through into spring.” O’Neil says an issue for growing a full crop, could be expected,” those varieties had lower crops as a result and smaller misshapen fruit ers in those regions is whether they he says. which is the biggest con- should convert from Psa-suscepti“With G3 we are cern at the moment,” he ble Gold variety 16A to G3. “The becoming more and more says. That was not seen experience from Bay of Plenty is confident that provided to any extent in the Gold that it’s easier and safer to convert growers follow the best their Gold varieties to a more tolvarieties. practice Psa control meaO’Neil says there has erant variety before infection gets sures we are recommendbeen no further progres- established because after it does, it ing, G3 will be able to grow sion of Psa in areas newly is more difficult.” through successfully in a identified last spring as Psa environment. Barry O’Neil having the dis“But I think everyone would like another 12 months of ease. The movement of experience – another autumn-win- the Psa into these areas ter-spring period – to have full con- had actually occurred fidence that we are understanding six months prior but was everything about G3 in a Psa envi- only identified in spring. KVH HEAD Barry O’Neil is “optiHawke’s Bay, Kerikeri ronment that we need to know.” mistic” the National Pest ManageFrom the perspective of fight- and Poverty Bay have had ment Strategy for Psa will get ing Psa, the dry has been the best just one orchard each government approval in April. weather they could have hoped for identified as having Psa. The plans will give KVH greater “but unfortunately that’s not going “But again the warm, dry powers to enforce measures summer has helped and to last forever”. required in the battle against Psa, An issue of concern is that some we would expect some including the removal of abandoned green varieties have had flower more movement coming orchards. drop and bud rot that KVH believes into autumn and then

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IF THE drought continues it will soon be as bad as 2008, says Dairy Women’s Network (DWN) chief executive Sarah Speight. “It is just a matter of hanging in there. People have been saying it’s not as bad as 2008, but it’s rapidly getting the point where that’s not quite right. The level of concern has definitely risen in the last week or so.” Speight says it will be a short season for many people particularly north of Taupo, so that’s putting pressure on cashflow. North of Hamilton, large numbers will be drying off over the next week or so. “Feed supplies are tightening quickly as more people are looking for additional supplement if they can find it,” she says. “Luckily there are some good maize crops around, so as we start seeing the maize harvested the pressure on feed will come off a bit.” Speight says DWN is urging the regional groups to get together so people know they are not alone in the situation. “Everyone is in the same boat and we are encouraging members to get along to events such as the DairyNZ ‘Beat the Heat’ days, to develop a plan sensible for their business.” Speight expects it will be the main point of conversation during networking times at the Dairy Women’s Network annual conference in Nelson this week. “One workshop in particular called Profitable Nutrition we expect will focus on the drought… feeding our cows right now, what are our options, what do we need to do and think about.”

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Rural News // March 19, 2013

14 news

Porina warning for southern farms P E TE R BU R K E

THE DROUGHT may have spared farmers in the North Island from a major infestation of porina this year. But farmers – especially in Southland and Otago – are still warned to watch for signs of damage in their pastures. Colin Ferguson of

AgResearch, Invermay, says he’s been monitoring flights of porina moths all around the country and noted big flights in the South Island in December last year. But there is usually a late flight about this time of the year in the North Island and he and a group of farmers are closely monitoring the

flights for porina moths, The moths lay their eggs in the pasture, these hatch and the caterpillars eat the grass. Porina caterpillars can cause massive damage to pasture and it’s been reported that whole hillsides have been eaten bare causing hundreds of thousands of dollars of damage.

Last year porina caused significant damage in the central North Island and a group of farmers volunteered to set traps to monitor the porina flights. Recently there were reports of flights, and Ferguson will be checking the situation this week. But he says the dry weather may offer some tempo-

rary relief for North Island farmers. “Basically the hot and dry desiccates the eggs of the young larvae so they don’t do very well. So normally when you get a very dry summer you don’t get porina problems, but what you can get is large outbreaks about two years later.

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“When the dry summer kills off the porina, there is nothing there for the diseases that normally regulate the populations of porina, so they die off as well. It takes a couple of years for the porina to build up numbers, but the diseases lag a year behind the porina, so you can get a very bad year for porina damage before things settle down.” But while it’s been dry in the North Island, it’s been a ‘normal’ season for porina in Southland and Otago and Colin Ferguson is putting the warning out for farmers to monitor their pastures.

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“The big flights have already occurred and we don’t get that very late flight the North Island gets. We had some massive pre-Christmas flights and we also got some reasonable post Christmas flights. The number of moths we are collecting down here would suggest there could be quite a lot of porina damage around.” Ferguson says porina damage should start to show in early April in the South Island and in some cases in the North Island. He says the damage from the big North Island flights won’t show up until well into May.

Landcorp takes over Crafar farms LANDCORP IS set to take over the full running of the Crafar farms, now owned by the Chinese company Shanghai Pengxin. Currently the farms are run by sharemilkers, but Landcorp has a wider management role in the interim. Chief executive Chris Kelly says he’s spent a day going around the farms and has seen a quite a selection. “They have farms in the Te Kuiti area near Bennydale that are quite good. They are as good as any I’ve seen for a while because it’s quite high up and cold so there’s a bit of greenery there. One of the Crafar farms is irrigated so that helps, but the other ones on the volcanic plateau are just as bad as ours – production plummeting. They’re having to dry off cows and there will probably be no production at all in May. It’s not normal for this ground around here that’s for sure.” Kelly says the new joint-venture Shanghai PengxinLandcorp board has been meeting to discuss a proposal to upgrade the Crafar farms. It’s planned to spend upwards of $15 million on the farms over the next two to three years. Some of the Chinese directors will get to see the farms for the first time.


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Rural News // March 19, 2013

16 news

Environment Minister rings water changes peter burke

ENVIRONMENT MINISTER Amy Adams says the importance of fresh water to the New Zealand environment and economy cannot be overstated. She told Rural News that though Australia is seen as ‘lucky’ because of its mineral wealth, she argues New Zealand is even luckier because of it water resources. A new 57-page document now out for public consultation originates from the Land and Water Forum (LAWF), which gained, over two years, a high degree of consen-

sus among parties formerly at loggerheads on water management. This document highlights, among other issues: decision processes being litigious, resource consuming and creating uncertainty; a lack of robust information on the impacts and outcomes of management decisions; water not being used efficiently or for its higher-value use; iwi values not being considered; and existing freshwater management systems being insufficiently adaptive and dynamic. Adams wants changes, but she insists economic development will not be at

the long-term expense of the sustainable management of water. She points to gains attainable by better managing water. “Managing water more efficiently by irrigation has potential to increase agricultural exports by $4 billion per year by 2026. The value of allocating existing water takes more efficiently in water-scarce catchments is estimated at $12.7 million for each 1% improvement.” Clearly annoying the Government are the drawn-out legal processes characterising many council decisions relating to the

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RMA in respect of water. For example, the Horizons One Plan, whose finer points are being fought out in court. “Sector groups, industry and environmental, have often tended to take extreme positions in the hope it will move the bal-

of fresh water. Horticulture and dairying differ on this. In catchments where resources are limited horticulturalists see the use of water for dairy irrigation and shed washdown as much less efficient than using it on high-value crops. The report seems to back the horticulturalist view. Some proposals in the reform document will be part of RMA reforms; most will be achieved by ‘guidance’ from the ‘national objective framework’ councils will be required to follow. Says Adams, “We can’t continue the system of litigating – where the last

man standing wins. We need a process that’s more collaborative, more forward looking and reflecting the fact that water is important to us – environmentally and economically. We can’t afford to pick one winner over another. We have to find what works for our economy, now and into the future and that is sustainable.” Adams says while it’s not possible to force people to be collaborative, there will be incentives in the process to reward those who behave in this way. @rural_news facebook.com/ruralnews

Reforms aimed at councils

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Amy Adams

ance their way,” Adams explains. “This is perhaps out of concern that if they start in a moderate position they will miss out. This cannot continue as a way forward for New Zealand. We must recognise the economic potential of water use and the rare and valuable asset our abundant, clean waterways are and find solutions that protect both. “In the end, I think New Zealand is mature enough to have that debate and make informed and sensible choices.” The report highlights the need for more efficient and productive use

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THE WATER reforms document follows by one week a similar document on reforming the Resource Management Act (RMA), also out for consultation. The 83-page RMA report proposes hacking at the undergrowth of costly council plans; the aim is to make New Zealand’s regulatory environment simpler, clearer and less expensive. It also proposes putting the acid on councils to produce detailed plans, and to properly analyse economic impacts. Some councils have been severely criticised by Adams and her colleagues for the quality of their ‘section 32’ reports – supposed to provide detailed economic analysis to back up decisions. ‘Sub optimal’ is how Adams describes some of them. “Councils need to use what I call an iterative process. When they set limits and objectives they have to come up with an indicative position on what they think they should be. “They need to work through and understand the impact of what that will be on their community in growth, jobs and lost opportunities and then work out whether they’ve set them at the right level. They then need to go back to their community and make sure that’s what they want.” Adams believes the lack of clarity in the RMA is discouraging innovation and investment.


Rural News // March 19, 2013

news 17

Lobby groups view changes differently peter burke

FEDERATED FARMERS and Fish & Game appear back on the road to disagreeing on water reforms. Both attended the launch of the reform document at the annual ‘Blue Greens’ conference – the environmental arm of the National Party. Feds chief executive Conor English says water reform is complex, but he sees the Government heading in the right direction. Feds intends scrutinizing the document and will make a submission, English says. He favours

Conor English

English says the science needs to catch up to ensure more informed decisions. “We have regional councils… making decisions on regional plans that impact land and

“In the past there hasn’t been enough information for the best decisions to be made.”

rivers. They want to convert these into basically a regional planning instrument. I don’t think this will have traction with the wider public once they work through it.” Johnson also describes the consultation process as dishonest, saying the public has not been given sufficient time to read it and make a submission. He thinks the primary goal of the Government in the reforms is making more water available for development and sweeping away barriers to get it. He’s also not convinced more science is needed. “There is a lot of science around that can be applied. It’s a red her-

Sensible, organised, consistant IMPROVING THE quality of science is a priority, and Environment Minister Amy Adams says measures will be put in place to improve this. “You will never completely remove battles and individual parties presenting their cases. New Zealand is a small country and we have a limited number of experts in this field. It makes more sense to use them to compile a nationally understood and consistent framework of what the best science tells us and then get local decision making focused on how that applies to their water body, rather than re-arguing the science from the ground up.” On the Overseer controversty, Adams admits it’s “a long way from being a perfect regulatory tool”. She acknowledges the problems horticulturalists and arable farmers have with Overseer, and that more work has to be done to make it a more reliable regulatory tool. Adams believes the proposed reforms will benefit farmers. She says farmers and everyone else can expect a far more understandable system based on better science and information and a focus on better deci-

sion-making at local council level. With a collaborative approach, she’s hoping for greater buy-in and an end to expensive wasteful litigation. However, she does have a simple bottom line. “Government can’t continue to be hands-off and allow every community, every council, to work this out it for itself in isolation

and fight for resources. Our bottom line is that we need to make a start on a sensible, organised and consistent framework that’s going to preserve water for the long term benefit of New Zealand based on national guidelines.” Submissions on the document close on April 8.

– Conor English the collaborative approach proposed. “The challenge with the collaborative approach is making sure there is enough independently based science information to help communities make informed decisions. We support the collaborative approach if we can get win-win solutions – provided these are based on good science and not emotion…. In the past there hasn’t been enough information for the best decisions to be made.”

water stewardship and they simply don’t have the required scientific and economic information for informed decisions.” Meanwhile, Fish & Game’s Bryce Johnson claims the reforms outlined in the document are loaded towards the use of water and far less towards the conservation of natural water. “The document lacks conservation orders which are the primary mechanisms we have in New Zealand to protect

Forget Moata & Tama Bryce Johnson

ring to say we need more science. We know what the problems are, and we know what the remedies are; what is lacking is industry and, to some extent, the political will to enforce that science we have now on to land use.”

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Rural News // March 19, 2013

18 news

India beckons large for NZ agricultural exports SUD ES H K I SSU N sudeshk@ruralnews.co.nz

BANKER SUBHAS DeGamia has seen dairy shelves in Indian supermarkets undergoing big change. DeGamia, who five years ago moved to Mumbai as ANZ’s chief executive, says the range of flavoured yoghurts, speciality cheeses and processed milk is rapidly expanding. And India’s increasing middle class wants more speciality dairy products. DeGamia, in Auckland last week for a NZTE and India-New Zealand Business Council seminar, says Fonterra is well placed to take advantage. “My observations from a demand perspective are that there are opportunities for a high quality processor like Fonterra,” he told Rural News. While New Zealand may be a small country facing the “tyranny of distance” from India, there are traditional linkages and the clean green reputation that works in our

Second, demand for favour, he says. value-added products will Most Indians know remain strong. DeGamia about New Zealand points out in the past 50 through cricketing and years about 200 million Commonwealth ties. people moved into urban “Their perception of areas of India. About 250m New Zealand is clean, more will move into cities green and pristine. Dairy over the next 20 years. “We products from New Zeahave the same number of land are considered high Subhas DeGamia people moving into urban quality and safe. So, the demand… is there and people are will- areas in half the time. This urbaning to pay a premium for high quality isation creates opportunities. As disposable incomes move up, so does and safe products.” Indian consumers’ appetites for demand.” Third, the supply of food will need quality New Zealand food is not confined to dairy. Our kiwifruit is sold in to be backed by better technology and many parts of India and wine exports infrastructure between the farmgate are growing. Lamb exports to India and consumers. The Indian and New Zealand govare also on the agenda. DeGamia sees three opportunities ernments are working on a free trade in India for New Zealand businesses: deal. While DeGamia opts not to comFirst, India is tipped to become ment on the status of FTA talks, he the world’s most populous nation by says any bilateral agreement will ben2030 and to become a net importer of efit both countries. Two-way trade six years ago was most farm commodities.

$200 million; this grew to $1.2 billion last year. DeGamia believes an FTA will enable trade to double within years. But even after eight rounds of negotiations a trade deal remains elusive. MFAT said after the eighth round of talks in New Delhi last year that “useful progress was made in a number of areas, but progress overall remains mixed”. High tariff and regulatory barriers and concerns by Indian farmers about opening the dairy sector to big producers remain stumbling blocks. Fonterra, developing milk pools outside New Zealand to meet a growing global demand for dairy, has India in its sights. Last November it announced the appointment of its first India staff and the opening of the Delhi office. It says India has a complex dairy market and “must have dedicated leadership on the ground to further strengthen relationships and develop opportunities”.

Huge growth in demand PROTEIN DEMAND in India over the next 10 years is projected to increase 3.2 million tonnes (72%). Annual demand for fats would increase to 11.1 million tonnes (52%). An ANZ report says while it is difficult to forecast the mix of products that might fill this gap, converting the figures to milksolid (MS) equivalents gives an idea how many cows would be needed. “Our estimates suggest that to meet India’s protein demand you would need roughly five times what New Zealand currently produces, while fat requirements are about 12 times what we now produce. “At current international dairy prices this translates into some big numbers. Of course New Zealand does not have the resources to fill this and some of this higher demand will be met by higher domestic production in India and accessing other markets than New Zealand.” It does, however, present opportunities for New Zealand. One would be to focus on the speciality/boutique food market segments to extract as much added value as possible, the report says. “Another would be to leverage more fully off our comparative advantage and boost the returns from our intellectual property and expertise in food production systems and food processing and manufacturing.”

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Rural News // March 19, 2013

news 19

‘Guru’s’ claims full of bull – scientist AN D REW SWA L LOW andrews@ruralnews.co.nz

NEGATIVE ASSERTIONS about New Zealand farming by biological farming and nutrient dense-food advocate Arden Andersen (Rural News, Feb 19) have been systematically refuted by New Zealand Grassland Association president Jacqueline Rowarth. In an article posted on the association’s website, Rowarth says some of Andersen’s ideas “are not based on science or New Zealand experience”. Rowarth rips into his comment that New Zealand milk has three to four times the urea nitrogen of US milk, and that much urea ends up in our lakes and rivers. “Fertiliser requirements in New Zealand are calculated based on nutrients being

exported off farm and what is required for plant growth, based on soil and herbage tests. Using the tests, farmers can see if they are increasing, maintaining or mining nutrient concentration in the soil,” she writes. “New Zealand’s fundamental problem is that most nutrients brought onto the farm are exported in milk and meat; it is extremely difficult to be 100% efficient.” She also shreds Andersen’s linking high mastitis and low cow longevity in New Zealand to “supposed imbalances in New Zealand soil and resulting cow stress”. Research indicates an 11% incidence of mastitis here, in contrast to industry statements from the US of 25%, and a New Zealand cow averages 4.8 lactations to a US cow’s 2.5. Meanwhile, Andersen’s

labelling of DCD as an antibiotic points to confusion with dermcidin, which shares the abbreviation with dicyandiamide, she says. Dermcidin is a protein produced in sweat glands and described as antimicrobial/antibiotic because it kills organisms on the skin.

commercial As for companies that Andersen’s they retain the assertion that right to balresearch organance trials, ranisations are domise and biased by their Jacqueline Rowarth replicate treatfunders, he ments, analyse doesn’t appear to know that at least some data and withhold their name if they don’t agree of New Zealand’s major with the way results are research organisations used commercially. state in contracts with

“Universities and CRIs have done and are doing a considerable amount of research on the various components that make up ‘biological agriculture’. They are called soil science, pasture science and animal science, as well as ecology and systems research.” Rowarth told Rural

News that in writing her riposte, she focussed on facts. She acknowledges Dr Andersen’s passion, but, based on a quick Google search, notes his qualifications do not appear to cover soil science, plant physiology or ruminant nutrition. Full article: www.grassland. org.nz

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FERTILISER COMPANY Ballance says it shares farmers’ sentiment that nitrate inhibitors containing DCD should be allowed back on the market. But the farmer co-op adds this must only happen only when potential international trade requirements are met. Ballance research and development manager Warwick Catto says the question is what standards need to be met on trade issues. “We have to work out what levels of DCD residues the marketplace will accept,” he told Rural News. “This will require a bit of science and research. But we endorse farmer sentiment that nitrate inhibitors should be allowed back to help farmers tackle nitrate leaching on farms.” Nitrate inhibitors, containing DCD, were voluntarily withdrawn last month by fertiliser companies Ballance and Ravensdown following the discovery of small traces of residue in New Zealand milk products. A working group, headed by MPI, is assessing the use of DCD on farms and resulting residues in food. The working group is also made up of Fonterra, the Dairy Companies Association of New Zealand (DCANZ), Ravensdown and Ballance. Catto says the working group could take a couple of years to complete its work. “At the end of the day, we must have the confident of the market,” he says. Ballance had not sold its nitrate inhibitor DCn since July 2012 and had not promoted its use on pastures since late 2010. Catto says only a handful of Ballance customers have recently used the product. As a precautionary measure Ballance will not reintroduce any DCD-based products to the market until the potential international trade issue of milk residues is mitigated. Fonterra Shareholders Council chairman Ian Brown says the products containing DCD are one of the effective tools used by farmers to mitigate nitrate leaching. He says Fonterra farmers are waiting to see if DCD products are allowed back by MPI. “It’s not the silver bullet but it’s one of the spanners in our toolbox,” he told Rural News. “We’re keen to see it come back but let’s wait and see.”

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Rural News // March 19, 2013

20 news

Most farmers not as good as they think PAM TI PA pamelat@ruralnews.co.nz

A TOTAL 80% of sheep and beef farmers think they are in the top 10% of profitability, says Beef + Lamb NZ director James Parsons. Clearly most are not, says Parsons and the planned Red Meat Pri-

mary Growth Partnership (PGP) is about closing the gap between the top performers and the rest. But first many have to realise they are not top performers so they can see the opportunity to increase profitability, Parsons adds. He was outlining the $65 million PGP to farmers at a recent Sheep Pro-

ductivity Field Day in Northland. Regarding criticism of the meat industry Parsons said: “I am not for one second trying to suggest the meat industry should sit on their hands and do nothing; there are things they need to do. “But what we can control as farmers is our busi-

ness and that’s something we can do something about. We should look at the things we can control rather than the things we can’t.” Parsons said all studies show the gap has widened between the profitability of top performing farms and others over the past 20 years. When they

looked at what these farmers were doing differently, they were just good business people. An aim of the PGP was to start replicating some of that best practice throughout the industry and much of it was about doing the basics really well. Parsons said he wanted to move the discussion

in the sector away from price; there was not much variation in price between fifth and second quartile of performers. “When you move to lamb sales per hectare you see the variation – 135% difference in profitability. The sector talks about what we are getting per head. These are things we can’t control as farmers; what we can control is things such as lamb sales per hectare, productivity and what should our focus be if we want to be proactive about moving our profitability forward.” The Red Meat Strategy came up with three core themes: coordinated in-market behaviour, efficient aligned procurement, and sector best practice. “People said ‘here’s another strategy, it’s been tucked away in the bottom drawer and it would just

Beef+Lamb director James Parsons outlines the Red Meat PGP strategy.

be a door stopper’,” he said. B+L NZ has had people working over the past 12 months to “put some wheels behind it”. Parsons said all farmers should have voting documents on whether they support the investment. “This is a significant transaction for B+L NZ so we are required to go out and get farmer support. That voting process finishes on March 8.”

Four key aspects of the programme: Understanding behaviour change: About $3.6m (over seven years of programme). How do these top performers behave differently from others? “This is about doing some social science, which is a bit touchy-feely after the traditional way we have done research – which is more the biological stuff,” said Parsons. How do you get the research out to farmers and get them to adopt it faster than before? “If we can reduce that down to three years rather than 10 years, that’s going to ramp up profitability a lot faster. Sector capability: The biggest project – about $36.5 million. Annual investment is $5.2m a year – the Government is funding half – so investment as farmers is about $1.5m a year. This part of the PGP includes building accountability including in implementing farm systems, building a stronger network among farmers – including the professionals they deal with – and building business management skills. “We are technically quite competent but some of our financial literacy is behind; we are running multimillion dollar businesses so it is important we raise the bar.” Systems and data integration: About $18.5m; $6m a year; B+LNZ’s contribution is about $792,000 a year. “One thing which came out of the Red Meat Sector Strategy is that 80% of farmers think they are in the top 10% of profitability,” says Parsons. “If farmers think they are in the 10% of profitability but they aren’t, they won’t think there’s much more they can do to lift profitability. People are going to have to have some awareness of that and see the opportunity.” Production and providence: About $1.8 m over seven years. A quality assurance scheme that is a base standard for all the meat industry – not just animal welfare etc but also environmental. “The great thing about benchmarking is you can pick trends,” said Parsons. This was also about taking the production and providence story to the marketplace including providing good information for “those who go into bat for us to regulators” and building some collateral using the clean green image to win new markets.


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Rural News // March 19, 2013

22 news

Connecting with the real world! ‘Scientists in residence’ are an effort by Massey University to get farmers and researchers working close together. Reporter Peter Burke caught up with one such scientist, Professor Paul Kenyon, at Riverside Farm, Wairarapa. RIVERSIDE RESEARCH farm, just off SH2 about 11km north of Masterton, is 650ha plus a 75ha block at Mikimiki. The farm runs 4000 ewes and 300 cattle on mostly typical hill-country pasture, but is now trialling herb crops

such as chicory. Though known as ‘scientist is residence’, Professor Paul Kenyon remains based at the Massey campus and continues in his teaching and research roles; but he’ll have another role.

“My role is to facilitate more activity on the farm through research, and also technology transfer and the best use of the farm for educational purposes, whether it’s with Massey students or high school students in Wairarapa or

education providers such as Taratahi Training Institute. “From the university’s point of view it’s one of the larger commercial farms, but it still has the capability to do controlled research and collect the

hard data because of the way it’s set up with staff. It has a slightly higher staffing rate than a commercial farm would have for its size because it has the potential to collect data.” The level of activity at Riverside has been low in the past few years, but Kenyon’s appointment shows Massey wants more, Kenyon says. Riverside is used to ‘scale up’ research done on smaller farmlets around the Massey campus. But Kenyon says the university

will this year set up intensive research areas on the farm to foster greater community engagement and look more closely at farmer requirements. Farmers once had much more contact with MAF farm advisors and were able to talk to scientists at the Ruakura Research Station open days which used to precede National Fieldays. Many people now argue that science institutions have lost touch with farmers.

“There has been a disconnect for a long time between scientists and farmers,” Kenyon says. “The thinking has always been that scientists do the work and farmers pick it up. But there’s been a gap in the middle [requiring information be packaged up] and made readily available to farmers. You can do that with better knowledge transfer systems or by involving the farmers in the research. This is what we are trying to do.”

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‘IMPROVING’ IS how the Minister of Science and Innovation, Steven Joyce, describes the performance of the CRIs in technology transfer. He told Rural News, at a recent science communication conference in Christchurch, that he’s formed this view after talking to some CRI people. Some have improved a lot; some

need to do better. CRIs should be as close as possible to the sectors they service, Joyce says. “There is a huge challenge in transferring technology in a sector as diverse as agriculture. CRIs have a role, so does industry – the various organisaition farmers are part of, such as Fonterra, B+LNZ and DairyNZ.”

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Rural News // March 19, 2013

news 23

Taking ideas from the lab on to farm

stuff from us because we inject the practical into it. We all farm in different environments and have different farming systems, so we come to it Jim Spall with different perspectives.” Like many farmers, Spall says he’s missed the interaction with scientists that existed until 20 years ago. Since joining the group Spall has planted chicory and plantain mixtures and got good results. “It’s starting to have an overall good effect on the farm performance.”

Professor Paul Kenyon

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JIM SPALL is a Hawkes Bay sheep and beef farmer who’s been involved in the Massey project since its inception. He is full of praise for what’s been done and says it’s been a good learning experience. “We’ve been able to converse one-onone with scientists and see their thinking behind the project with the chicory and herbs. We also have opportunity to come back a number of times in the year and this gives you a picture of how the herbs and the chicory are working. There’s also good dialogue between farmers and the scientists and all of us are learning.” Spall feels he and the other farmers are contributing to the success of the herb species trial. “We are learning, and I hope the scientists are picking up some

many of the ideas we have investigated are tweaked from what farmers are doing on-farm. Hopefully we can come back with management plans applicable [to farmers’] systems.”

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Farmers on board with Massey

exercise some control so that it produces good scientific data.” Kenyon hopes the farmers will pick up the concepts and ideas and see why scientists do certain things. “Conversely

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is bliss. But you have to force yourself to say ‘let’s not keep doing revised versions of what we have done in the past which works ok’. Instead we will try to get something better or different. We do extension well in New Zealand but that doesn’t mean it couldn’t be better.” Paul Kenyon sees his extra role as scientist is residence presenting challenges different from everyday teaching at Massey. “It’s different from the type of teaching you normally do; it’s more interactive and it’s a different type of research. Every time farmers visit they come with new ideas or new questions, so we have to tweak the research to make clear what we are doing or try to answer their questions. But at the same time we have to

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at Riverside as the farm raises its profile in the community. The researchers are doing exactly as suggested in the B+LNZ and meat industry multi-million dollar Primary Growth Partnership proposal to improve technology transfer, Kemp says. “We’re not trying to run a parallel system to B+LNZ; ideally they would pick up some of the ideas we have. One advantage the university has is that we can [go direct to] people. We don’t have to read a paper about it…. Maybe we can improve our discussion groups by going direct to the social scientists. “One eye opener for us is the [wealth of] research on how well people learn in these types of groupings. Most of us aren’t aware of this; ignorance

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A TWO-YEAR research project by Massey University is aimed at improving technology transfer from scientists to farmers. This study involves agricultural scientists, including Professor Paul Kenyon, running trials on species of mixed herbs and clover. About 20 farmers regularly meet with the scientists for updates. Also taking part are two social scientists evaluating the interaction between the scientists and farmers; their role is to find the best way to present information to farmers. Professor Peter Kemp, recently appointed head of the Institute of Agriculture and Environment at Massey, oversees this work. Some 25 farmers were first involved, a few dropped out and others joined. Kemp hopes to get funding for another group

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Rural News // March 19, 2013

24 world

Farmer protests fail to sway Govt Protest meetings in Victoria and South Australia, further planned demonstrations and a direct meeting have all left Federal Agriculture Minister Joe Ludwig unmoved. Farmer Power representatives met with Minister Ludwig last month at a meeting hosted by the Victorian Farmers Federation. The United Dairy Farmers of Victoria also attended. The group asked for

cash assistance to help farmers address cash flow problems. However, Ludwig later said although he recognised the ongoing concern among dairy farmers about their tough financial situation, the Government would not apply any further measures. Ludwig said he and his parliamentary secretary, Sid Sidebottom, had regular contact with representatives of the dairy

industry. “Australian agriculture is seeing a patchwork effect and while some areas are doing well, others are doing it tough,” Ludwig said. “For some dairy farmers in Victoria, a range of factors are combining to place pressure on their businesses. “Dairy Australia is aware of these pressures and is using levies and government funding to sup-

port producers through initiatives such as the Tactics for Tight Times work-

chance at the end of the meeting to raise their concerns and these were pri-

Farmers have been called to support another protest movement at Murray Bridge. shops. “The Transitional Farm Family Payment is available to producers to provide some financial assistance.” The payment is paid at a fortnightly rate equivalent to the Newstart allowance. It helps farm families experiencing financial difficulty to manage the impacts of climate variability and market fluctuations. South Australian Dairy Association (SADA) president David Basham is due to appeal to both Opposition Agriculture Spokesman John Cobb and Federal Agriculture Minister Joe Ludwig for help in Canberra this month. Farmer Power held meetings in Tongala, Warrnambool and Mt Gambier last month and each were well attended. The Tongala meeting was dominated by presentations by guest speakers, including Barnaby Joyce, Dick Smith, and the local council. Bob Katter was invited up for a few minutes and implored the room to “vote for me”. Farmers leapt at the

marily based on water and uncertainty surrounding irrigation allocations. Opposition Agriculture spokesman John Cobb travelled to Warrnambool the following day and took questions for 90 minutes from the crowd of 150 farmers. Although sympathetic, Cobb said there was no silver bullet for the industry. Up to 200 people attended a meeting at Mt Gambier to discuss

the current industry and listen to speakers, including Murray Goulburn representative Robert Poole, Dairy Australia’s Joanne Bills and Grain market analyst Ron Storey. Farmers travelled from as far away as Blythe in South Australia’s midnorth to Cobden in Western Victoria and they asked questions right throughout the three hour meeting. There are about 290 dairy farms in South Australia. South Australian Dairy Farmers association president David Basham told the crowd to register their interest for collective bargaining in a bid to improve farmgate returns. He said the process had been successful in the Fleurieu Peninsula

Farmers at the Tongala Farmer Power meeting line up to state their concerns.

in bringing an extra processor to the region and adding competition. An immediate solution offered by Basham was welfare support for those dairy farmers struggling to put food on the table in the current low price, high cost environment. Farmers have been called to support another protest movement at Murray Bridge later this month. The March for Milk is expected to attract at least 300 protestors. Organisers want to highlight trade tariff imbalances between Australia and other nations, a lack of real competition between milk processors in the domestic market, and downward price pressures from major supermarkets.


Rural News // March 19, 2013

world 25 Boffins chew on climate change actions ALAN HARMAN

THE THREAT of climate change to global agriculture will be the focus of an international conference in the United States this month. Scientists and policymakers will meet this week (March 20-22) at the University of California, to recommend science-based actions to slow the effects of climate change yet continue meeting the world’s need for food, livelihood and sustainability.

UC Davis Chancellor Linda Katehi says climate change, which brings severe weather events and more subtle but equally menacing temperature changes, presents unprecedented challenges to the global community. Attendees will discuss the implications of cutting-edge agricultural, ecological and environmental research for improved design of policies and actions affecting agricultural management and development; identifying farm and food-system issues; determin-

Aussies push for Korean FTA SUD ES H K I SSU N sudeshk@ruralnews.co.nz

AUSTRALIAN BEEF farmers are pushing the Gillard Government to restart free trade agreement talks with South Korea. Industry leaders visited Seoul this month seeking to resume talks with the South Koreans. The National Farmers Union says Australian beef producers stand to miss out on A$1.4 billion in exports to Korea unless a FTA is in place soon. It says the threat to other exports like wheat (A$350 million) and dairy (A$100 million) is also high. FTA talks between Australia and South Korea stalled after the Australian cabinet banned even starting talks which require settling any type of investor-state dispute (allowing companies unhappy with their treatment in another country to seek arbitration in an agreed third jurisdiction). This ban was imposed because the cabinet was so upset that tobacco corporation Philip Morris was taking the Government to an international tribunal to seek compensation for the new plain packaging rules for cigarettes – via an investment treaty with Hong Kong. NFF president Jock Laurie says Australian farmers are losing out without an FTA with South Korea, unlike major competitors including the US. “We are effectively handing over more and more of our hard-earned market share each year to farmers in the USA and other regions.” Meat and Livestock Australia’s manager of international markets and trade services Andrew

McCallum says FTA negotiations with South Korea have stalled due primarily to an issue totally unrelated to beef. “MLA is providing support to industry and government as they work to secure a swift conclusion to the free trade agreement with Korea.” Under the current arrangements, Australia’s A$645 million annual beef trade with Korea is subject to a 40% tariff. But under the Korea-US deal US beef attracts only a 34.6% tariff. And this tariff differential is set to widen year by year till 2026, when US beef exports to Korea will be tariff free. Long term this could cause farmers to lose most of their trade with Korea. He says modelling by the Centre for International Economics indicates that by 2026 – the year US beef imports to Korea become tariff free – Australia will be losing A$182m sales annually. Australian beef exporters may lose A$1.4 billion. “Around the world, nations are looking to promote trade, particularly with lucrative markets in Asia, to overcome the economic downturn that resulted from the global financial crisis and to put in place a framework of trade agreements in the wake of the languishing WTO Doha negotiations,” says Laurie. “We have heard much talk about the opportunity ahead for Australian agriculture in the Asian century, and now is the time to act on this. Korea is Asia’s fourth largest economy and our third largest export market and Australia and Korea already enjoy an A$30 billion two way trade.”

ing research gaps; highlighting emerging research initiatives; and developing transformative policies and institutions. The conference will conclude with a declaration on key research and policy messages expected to point toward science-based policies and actions for global agriculture that will mitigate climate change and encourage adaptation to maintain food security, livelihoods and biodiversity. The conference comes as

researchers in Germany develop a new model to allow agricultural landholders to determine the full range of causes of greenhouse gas emissions, including soil and climate conditions. They say agriculture causes 10-12% of greenhouse gases attributable to human activities. The scientists spent three years investigating 40 organic and 40 conventional agricultural holdings in Germany’s four agricultural regions – focusing exclusively on crop and

dairy farms. They recorded all climate gas streams during the production process, including methane, nitrous oxide and carbon dioxide. In the case of dairy farms, they also factored in the purchase of soybean meal from South America and all related greenhouse gas emissions. Organic farming is more energy efficient and produces less land-specific CO2 emissions, but the researchers say this advantage is offset by the much lower yields of organic farming.


Rural News // March 19, 2013

beef market trends

Market snapshot Meat c/kgCWT

North Island

South Island

Change c/kg

Change c/kg

Lamb - PM 16.0kg

-2

Last Week 4.23

Last Week

n/c

BEEF PRICES

LAMB PRICES Change

c/kgCWT NI

-3

P2 Steer - 300kg

4.33

lamb market trends

Last Week

2 Wks Ago

Last Year

Change

c/kgCWT

NI Lamb

-2

YM - 13.5kg

Last Week

2 Wks Ago

Last Year 6.04

3.82

3.85

4.12

4.21

4.23

M2 Bull - 300kg

-3

3.85

3.88

4.17

PM - 16.0kg

-2

4.23

4.25

6.06

P2 Cow - 230kg

-10

2.80

2.90

3.30

PX - 19.0kg

-2

4.25

4.27

6.08

PH - 22.0kg

Steer - P2 300kg

-3

3.82

-5

3.65

M Cow - 200kg

-10

2.65

2.75

3.20

-2

4.26

4.28

6.09

Bull - M2 300kg

-3

3.85

-5

3.70

Local Trade - 230kg

-5

3.75

3.80

4.15

Mutton

MX1 - 21kg

-2

2.48

2.50

3.35

n/c

6.30

n/c

6.42

P2 Steer - 300kg

-5

3.65

3.70

3.90

SI Lamb

YM - 13.5kg

n/c

4.33

4.33

5.61

M2 Bull - 300kg

-5

3.70

3.75

3.85

PM - 16.0kg

n/c

4.33

4.33

5.63

P2 Cow - 230kg

-5

2.75

2.80

3.20

PX - 19.0kg

n/c

4.33

4.33

5.65

M Cow - 200kg

-5

2.60

2.65

3.10

PH - 22.0kg

n/c

4.33

4.33

5.66

Local Trade - 230kg

-8

3.80

3.88

4.00

n/c

2.43

2.43

3.30

Venison - AP 60kg

SI

North Island 16.0kg M Lamb Price $8.5

5yr Ave Last Year This Year

$7.5 $6.5

NZ Slaughter Change

3 Wks Ago

Cattle NI

+3%

55.8

54.2

25.4

38.8

Cattle SI

+1%

15.8

15.7

13.8

13.8

Cattle NZ

+2%

71.6

69.9

39.2

Bull NI

-21%

7.9

10.0

4.5

Bull SI

-17%

3.8

4.6

3.5

3.6

Str & Hfr NI

-11%

15.2

17.1

10.3

16.1

Str & Hfr SI

+2%

6.7

6.6

6.5

6.5

$6.5

Cows NI

+21%

32.7

27.1

10.6

13.2

$5.5

Cows SI

+18%

5.3

4.5

3.8

3.7

1000s

$4.5 $3.5 Dec

Jan

Feb

Mar

Apr

May

South Island 16.0kg M Lamb Price $8.5

5yr Ave Last Year This Year

$7.5

$4.5 $3.5 Dec

Jan

Feb

Mar

Apr

May

2Wks Ago

3 Wks Ago

Lamb NI

+9%

351

322

186

236

Lamb SI

+18%

429

364

289

417

52.6

Lamb NZ

+14%

780

686

475

653

9.6

Mutton NZ

-18%

128

156

118

126

60 40

5yr Ave Last Year This Year

$4.5

1000s

NZ Weekly Lamb Kill

900 750 600 450 300 150 0 Dec

Last Year This Year

Jan

Jan

Feb

Mar

Apr

May

Change

$3.5 $3.0 Dec

Jan

Feb

Mar

Apr

May

2 Wks Ago

Apr

May

Last Week

2 Wks Ago

Last Year 5yr Ave

n/c

1.50

1.50

1.78

1.77

NZ$/kg

-9

5.99

6.08

7.54

8.88

Demand Indicator - UK Leg Price Last Year 5yr Ave

95CL US$/lb

+2

2.20

2.18

2.24

1.73

NZ$/kg

+2

5.85

5.83

5.99

5.35

Demand Indicator - US 95CL Beef

South Island 300kg Steer Price

$4.5

Last Week

Mar

UK Leg £/lb

Export Market Demand

$4.0

Feb

Change

This Year

0 Dec

Last Year 5yr Ave

Export Market Demand

Last Year

20

North Island 300kg Bull Price

$5.0

Estimated Weekly Kill Change

Last Year 5yr Ave

NZ Weekly Beef Kill

80

MX1 - 21kg

NZ Slaughter

Estimated Weekly Kill 2Wks Ago

$5.5

Mutton

£2.50 £2.00 Last Year

£1.50 £1.00 Dec

$2.20

This Year

Jan

Feb

Mar

Apr

May

$4.0

$2.00 $3.5

Last Year

5yr Ave Last Year This Year

Jan

Feb

Mar

Apr

May

$1.80 Dec

Jan

Feb

Procurement Indicator

5yr Ave Last Year This Year

$9.0 $8.5

Mar

Apr

May

% Returned NI

-1%

73.0%

73.5%

82.9%

59.4%

% Returned SI

+0%

72.6%

72.4%

76.3%

56.2%

Procurement Indicator - North I.

% Returned NI

-0%

66.3%

66.6%

69.60%

69.9%

80%

% Returned SI

-1%

64.1%

65.5%

64.3%

64.7%

70%

Last Year 5yr Ave

Procurement Indicator - North I. Last Year

90%

Feb

Mar

Apr

May

South Island 60kg Stag Price

$9.5

60% Dec

Last Year

$8.5

This Year

Feb

90%

Mar

Apr

May

85%

Apr

75%

Procurement Indicator - South I. Last Year This Year

$8.0

80%

$7.5

Feb

95%

5yr Ave

$9.0

Jan

Procurement Indicator - South I.

70% Jan

This Year

50% Dec

$6.5 Dec

Last Year

60%

This Year

80%

$6.0

Last Year 5yr Ave

100%

Change

90%

$7.0

3 Wks Ago

3 Wks Ago

$8.0 $7.5

2Wks Ago

2Wks Ago

North Island 60kg Stag Price

$9.5

Change

This Year

$3.0 Dec

Procurement Indicator

65%

Last Year

55% 45% Dec

This Year

Jan

Feb

Mar

Apr

May

$7.0

70%

$6.5 $6.0 Dec

Jan

Feb

Mar

Apr

May

60% Dec

Venison Prices Feb

Change

Apr

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

6.30

6.30

7.17

7.01

SI Stag - 60kg

n/c

6.42

6.42

7.20

7.35

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Rural News // March 19, 2013

news BEEF

price watch WOOL PRICE WATCH Change

08-Nov

01-Nov

Last Year

Coarse Xbred Indic.

-4

3.90

3.94

6.36

Fine Xbred Indicator

+1

4.72

4.71

6.61

Lamb Indicator

-

-

-

-

Mid Micron Indic.

-

8.57

-

9.21

Kill still charging along due to drought

Indicators in NZ$

Cattle continue to pour out for slaughter with cows leading the charge. Some companies continue to focus heavily on killing cows with less space being allocated for steer or bull. This is causing some delays and frustration for farmers looking to drop prime and bulls quickly due to the dry. Delays of one to two weeks are fairly common with some out to 3 weeks. Cow prices continue to drop due simply to the weight of numbers. Bull and steer prices are slightly more stable. Holes in the kill are looming – it’s just a question of when they appear. The cow kill will be well advance if kill rates continue at current levels through March.

US imported beef prices move higher The high NZ cow kill has been pressuring the US imported beef market with US buyers bidding prices down on the back of our abundant supplies. NZ Feb cow slaughter was up 107% (or 46,000 hd) on a year ago levels and the desperate conditions in the North island will only serve to keep them coming. The run of NZ cow meat usually combines with the start of grilling season in the US which underpins prices but this year the cows have come early due to the drought. This has been pressuring returns with imported 90CL cow meat dropping US12c/lb since the end of Jan. But the tide appears to be turning with enquiry on the up for 95CL bull beef in particular. US imported beef prices have moved higher in the last week. It appears that many US buyers have sold forward and want to buy before prices seasonally climb.

LAMB Farmgate lamb prices continue to feel heat Unfortunately lamb prices have continued to move lower in the last two week as big numbers of lambs continue to hit the market due to drought conditions. Average lamb weights are now 1kg lower than this time last year in the North Island. With the store lamb markets dropping back sharply farmers are now killing down to even lower weights to get stock off the farm. Killing delays are still common for lambs and the number of ewes being killed has reduced again making space tighter for them.

Store lamb market takes a big hit A big drop in demand for store lambs and an increase in numbers hitting the market have hit store lamb prices hard in both Islands recently. South Island buyers have been significantly less active up in the north and drought conditions through most other areas means vendor mentality has shifted quickly. The real focus now is finding buyers rather than what price you can get. North Island store lambs had been trading in the paddock at between $1.50-$1.60/kg but prices quickly dropped by at least 20c/kg last week and most lambs traded in the paddock at between $1.25-$1.35/kg depending on sex and weight. But demand as these price levels is by no means solid. South Island store lamb prices are 30-40c/kg higher than in the north which has seen some renewed interest from South Island buyers.

Wool Indicator Trends

650 600 550 500 450 400 350 300 Mar

CXI

Dairy price lift on supply concerns Dairy prices in Oceania are firming significantly at present as milk production falls. Whole milk powder prices are now ahead of where they were at the same time last year. At the latest gDT event the whole milk powder price jumped a massive 18% and is now over US$4200/T. The weight average price across all products lifted just over 10%. Milk production in NZ is falling quickly due to continued drought conditions. Farmers are starting to dry off completely in some areas and processing plants are running on reduced schedules. It’s a similar situation in Australia where January milk production was 6% lower than last year. Production levels projected out to February have been described as “grim” with conditions in major producing areas drier and hotter than forecast.

FXI

Indicators in NZ$/T Butter Skim Milk Powder Whole Milk Powder Cheddar

Prev. 2 Wks

Last Year

+315

4425

4110

4480

+167

4365

4198

3913

+284

4365

4081

4211

+213

4910

4697

4719

Dairy Prices Trends

6,000

LI

Last 2 Wks

Change

SMP But.

5,000

WMP Ched.

4,000

May

Jul

Sep

Nov

3,000 Mar

Jan

Coarse Xbred Indicator

600

May

Jul

Sep

Nov

Jan

Whole Milk Powder Price (NZ$)

5,500

Last Year

Last Year This Year

500

This Year

4,500 400 300 Dec

Jan

Feb

Mar

Apr

May

Overseas Price Indicators Indicators in US$/kg

Change

08-Nov

01-Nov

-4

3.20

3.24

4.85

-1

3.87

3.87

5.04

-

-

-

-

-

7.02

-

7.02

Coarse Xbred Indicator Lamb Indicator Mid Micron Indicator

3,500 Dec

Jan

Feb

Mar

Apr

May

Overseas Price Indicators Last Year

Fine Xbred Indicator

550

Wool Indicator in US$

500

CXI

Indicators in US$/T Butter Skim Milk Powder Whole Milk Powder Cheddar

Last 2 Wks

Prev. 2 Wks

Last Year

+150

3650

3500

3750

+25

3600

3575

3275

+125

3600

3475

3525

+50

4050

4000

3950

Change

Dairy Prices in US$/Tonne

FXI

LI

SMP .But

4,500

450 400

WMP .Ched

3,500

350 300 250 Mar

May

Jul

Sep

Nov

2,500 Mar

Jan

Coarse Xbred Indictor in US$

May

Jul

Sep

Nov

Jan

Whole Milk Powder Price in US$/T

4,000

550 500

3,500

450 400 350

Last Year This Year

300 250 Dec

Jan

Feb

Mar

Apr

May

Last Week 2 Wks Ago 4 Wks Ago Last Year

This Year

2,500 Dec

0.90

0.829

0.825

0.833

0.824

Euro

0.632

0.632

0.622

0.621

UK pound

0.552

0.544

0.530

0.521

0.75

Aus dollar

0.806

0.807

0.810

0.774

Japan yen

78.53

76.41

78.03

67.25

0.70 Dec

Euro

Feb

Mar

Apr

US Dollar

Last Year This Year

Jan

Feb

Mar

Apr

Last Year This Year

0.52 Last Year This Year

Jan

Feb

Mar

Apr

ome rain or shine.

d our recently launched drought support packages e agri community. To find out more about i Team or call 0800 269 78725.

May

May

UK Pound

0.54

0.56

May

0.80

0.56

0.60

0.52 Dec

Jan

0.85

US dollar

0.64

Last Year

3,000

CURRENCY WATCH vs. NZ Dollar

DAIRY

DAIRY PRICE WATCH

0.50 0.48 0.46 Dec

Jan

Feb

Mar

Apr

May


Rural News // March 19, 2013

28 agribusiness

Sunny days for growers?

Horsemeat scandal continues to nag UK food sector SUD ESH K I SSUN sudeshk@ruralnews.co.nz

PA M TI PA pamelat@ruralnews.co.nz

THE HOT dry summer is a boost for horticulture, but growers too need rain in the next few weeks. The dry has encouraged good colour in fruit and allowed for ideal harvest, Horticulture New Zealand communications manager Leigh Catley told Rural News. “The dry conditions have had a positive effect in slowing the progress and incidence of some pests and disease in some regions, which means better yields, better product quality and less use of crop protection [chemicals],” she says. HortNZ president

Andrew Fenton says provided bores and water supplies hold up then most growers will not be too badly affected. “The apple industry is having a great clean harvest, the fruit has coloured up superbly so there will be good colour, good taste.” Onions are drying super quickly with no fungal rot. “Spray requirements for fungal diseases are down,” he says. “But anyone who is relying on water for irrigation, greens crops or new planting of fruit trees would be having major worries. Most [horticultural] people irrigating have a bore supply like a groundwater take as opposed to a rural reticula-

HortNZ president Andrew Fenton says hot, dry weather is a boon for crops such as apples, onions and kiwifruit.

tion system. “If it continues much longer I suspect we might see some increases in the prices of some vegetables – the green lines.” The hot dry and still weather is just what the kiwifruit industry needed

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with vine-killing disease Psa thriving in just the opposite – wet and windy conditions, Fenton says. Catley says horticulture has a high proportion of people who irrigate over summer. But it will become critical when vegetable growers shift their production to land not irrigated, the usual practice at this time of year because they expect it to rain. “That’s when things will get interesting: if they can’t plant out, it’s hard to plant out or if the products

go in the ground and don’t get any water.” Production will slow and the effects will be felt three or four months down the track, she says. The dry is great for harvest; she has heard comments such as “at least the tractor is not getting bogged down”. But it’s not so great “if you can’t till because the ground is so hard”. But overall right now she says “we would like it to rain just as much as anybody else right now”.

RURAL ADVISOR An exciting opportunity is available with Horizons Regional Council for a person to work with farmers on a range of issues and in particular, farm dairy effluent, water use efficiency, and nutrient management. The position is based in Palmerston North. You will need to: • Enjoy working with the rural sector. • Have excellent communication and liaison skills. • Understand how agriculture can impact on the environment. • Have a thorough understanding of farm dairy effluent systems, proven experience of nutrient management planning and the use of OVERSEER®. • Have a relevant tertiary qualification and proven industry experience. • Develop and sustain successful relationships with a range of scientists, rural consultants, farmers, and other Council staff. • Be familiar with the Resource Management Act and Horizons Regional Council’s relevant regional plans. This is a position where a highly motivated and innovative self-starter, working within a team environment, can make a difference partnering agricultural best practices with a healthy environment. Applications close 4.30pm Thursday 28 March 2013. Sound like you? For information on this position, including a job description and application form, please go to the Vacancies page on our website www.horizons.govt.nz/jobs or contact our Customer Services Team on freephone 0508 800 800. Your written application must be accompanied by a completed “Application for Employment” form.

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ONE OF the world’s largest retailers says the recent horsemeat scandal is a wake-up call for the food industry. Tesco, UK, says it will source more meat closer to home. From July it will buy fresh chicken from UK farms. All its beef – fresh, frozen and in ready meals – is already British. Chief executive Philip Clarke says it will move towards buying frozen chicken also from British farms – “a genuine shift in how Tesco sources the products we sell,” he told the recent National Farmers Union conference. He urged UK farmers and processors to work together with the retailer. “This needs to be a true and sustainable partnership, one built on mutual trust and understanding, in which both parties can prosper and make a fair profit. “The processors should work with us in tripartite partnerships and shouldn’t be a barrier to Tesco and farmers talking and working directly together.” Clarke says over many years, the way retailers source food has grown too complex., leaving the supply chain open to exploitation by rogue elements in the processing industry. “This is a pivotal moment for our industry. And it can also become a transformational moment. A strong and dynamic food industry needs partnership between retailers, processors and farmers, underpinned by a powerful and effective regulatory regime.” The horsemeat scandal hit global headlines last month when Swedish frozen food company Findus said some of its frozen beef lasagnas sold in Britain were in fact 100% horse. Investigators traced the meat back to horses slaughtered in Romania. However, the meat left there clearly labelled as horse. It then passed through a string of traders and processors linked to operations in Cyprus, France, Luxembourg, Belgium, the Virgin Islands and the Netherlands before ending up in the Swedish firm’s processed pasta product on British supermarket shelves. Clarke says Tesco isn’t the only retailer enveloped by the scandal. “There is barely a major retailer in the UK which has not had to withdraw a product, and the problem extends beyond retail to the catering industry, beyond the UK and across the EU.

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Rural News // March 19, 2013

agribusiness 29

Drought raining on agriculture’s fortunes unable to benefit from the pick-up in dairy and meat prices over the past six months. The impact of lower revenue will be further compounded by higher production costs, with the increased feed requirements a major contributor. This will have a lasting impact on our economy overall, as reduced profits will see farmers scale back on investment next season. New Zealand’s pasture-based farming system relies on rain to grow animal feed. While improved irrigation in some areas has reduced this reliance, rain as always remains critical to farming. While milk collection in the seven months to December was up 6% on the previous season, the last five months are shaping up to be much weaker – milk production for the full season is expected to be up only 1% on last year. Lower dairy production will have a direct impact on gross domestic product (GDP). GDP in short represents New Zealand’s total earnings and in turn our economic growth, changes to economic growth projections impact many areas of our economy as the reserve bank will look to make policy adjustments to minimise the impact the drought has on the country’s finances as a whole, needless to say this will impact everybody.

This goes to show how important the weather is for the New Zealand economy, in every recession for the last 50 years; drought has been at least a contributing factor. However, it is hoped the dry conditions won’t be damaging enough to offset the positives of a strengthening housing

market and the Christchurch rebuild. But it’s clearly negative for the

economic growth outlook this year and a sharp change to how things were shaping up at the start of the year. Although it’s hard to see any positives from the drought it may have a favourable downward impact on the Kiwi dollar, as the value of a country’s currency rises and falls

with its economic prospects. We are currently seeing US dollar strength on the back of some recent favourable economic data over there. The US sharemarket has recently hit an all-time high and confidence is beginning to return to the US economy. The impact of the drought

in New Zealand and the US economy starting to strengthen means we may see some further Kiwi dollar weakening. This has already happened as the Kiwi dollar is well off its recent highs. But for now the economic prospects for our farmers who are struggling depends on the simplest of things, rain.

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THE 2013 year started with reasonable optimism. Dairy production was tracking nicely and dairy prices took off. For sheep there was hope that new Asian demand for lamb and wool would bring a move in the right direction. Meanwhile, the US drought last year meant demand for our beef, grains and produce were looking healthy. Enter mother nature, her refusal to let the wet stuff fall from the sky giving us an unwanted drought of our own. Weather is the worst variable in the farming production chain, because despite the prudent planning of many farmers we have no control over it. It’s no surprise the impact of this summer’s drought is the main economic theme around the farming campfire. Although the North Island is worst affected, the financial impacts will be felt across the rural community and the country. Extremely dry weather continues, official drought now having been declared in Northland, Waikato and Hawkes Bay and others following. As a result, stock has been sent to slaughter early and dairy production has been cut back to reduce feed requirements. From an income perspective, reduced production will be particularly disappointing as farmers are

Call us. 0508 43 27 85 www.heartland.co.nz


Rural News // March 19, 2013

30 agribusiness

RD1 posts record fencing sales SUD ES H K I SSU N sudeshk@ruralnews.co.nz

FONTERRA FARMERS bought at least 100,000 posts in one week as part of their effort to reach the co-op’s stock exclusion

goal. A fencing products promotion last month by Fonterra and its subsidiary RD1 Ltd has been dubbed a great success. RD1 managing director Jason Minkhorst says

about 2500 suppliers bought in. “We we sold over 100,000 posts,” he told Rural News. “More was spent during the one week of the promotion than we could expect in store

sales in a month; suppliers really responded to the offer. “We’ve also got a clearer idea about regional product variations and will incorporate this knowledge into our national

From left: Fonterra Director Global Sustainability Bruce Donnison, farmer shareholder Grant Wilson, RD1 Managing Director Jason Minkhorst and Fonterra Chairman John Wilson load up some fencing supplies.

fencing campaigns.” Fonterra in June 2012 launched a waterway management scheme requiring that farmers, under their supply contracts, by December 1, 2013 exclude stock from waterways by permanent fencing or planting. Fonterra’s director global sustainability, Bruce Donnison, says the promotion is one way of helping farmers to achieve this. “Protecting New Zealand’s waterways is important to everyone in our cooperative and we need to work together to make a difference. “We know our farmers are working hard to make changes on-farm, but we also know there are big costs involved. We want to do what we can to get behind our farmers and

support the work being done.” The promotion included 50% off the price of fencing supplies, zero interest for three months on all fencing products, and free wire with all purchases over $1000. Barbecues were held at RD1 stores around the country during the promotion. Minkhorst says farmers enjoyed getting offfarm and catching up with neighbours, and supplier feedback suggested that having Fonterra field representatives and RD1 staff together at one time was helpful, especially for farmers yet to finish their exclusion fencing. “They now have a clear understanding of what they need product wise and the best approach for their particular property.”

barking up wrong tree! THE ‘HOUND’ (Rural News March 5) piece ‘Too little, too late!’ was incorrect. Incorrectly reported was the date Fonterra suppliers were contractually obliged to ensure stock could not access waterways. This date reported was December 2012 and your columnist went on to say RD1 and Fonterra had effectively missed the boat by offering fencing product at reduced prices now – rather than back when this could have been of use to suppliers. The correct date is December 1, 2013. Farmers have enough problems on their hands with the drought without having to wonder unnecessarily if they had got it wrong and missed their compliance obligations re fencing waterways. To answer your columnist’s question: no, it was neither too little nor too late. The United RD1 and Fonterra Group fencing promotion referred to was a success. At least 2500 suppliers took advantage of the offer and we sold at least 100,000 posts. More was spent during the one week promotion than we could expect during in-store sales over a month, so suppliers did not miss out on savings. The barbecues held at most RD1 stores during the promotion were also popular. Farmers got off their farms and caught up with neighbours. And supplier feedback suggested that having Fonterra field representatives and RD1 staff there was helpful, especially for those with exclusion fencing yet to complete who now have a clear understanding of what they need and the best approach for their particular property. Annie Wright Communicatons manager RD1 Limited [Editor’s note: The Hound has been appropriately chastised for getting this information so wrong. He will not be allowed out of his dogbox until he has eaten more humble pie than he can swallow.]


Rural News // March 19, 2013

agribusiness 31

francis wolfgram Finance Matters

NZ Dairy Market Last GDT Auction

Product

1 Mth Ago

3 Mths Ago

NZD/Tonne

Whole Milk Powder (WMP)

$5,201

Skim Milk Powder (SMP)

$4,197

$4,549

Butter Milk Powder (BMP)

$5,083

CHEESE

$4,631

$3,836

$4,301

$4,068

$4,272

$4,375

$4,266

$4,080

new zealand agri shares NZX Code

Company

Prices as at 11/3/2013

Divdend Yield

LIC

Livestock Improvement Corporation Limited (NS)

$5.60

9.71%

SAN

Sanford Limited

$4.38

7.50%

SKL

Skellerup Holdings

$1.49

7.52%

DGL

Delegat’s Group Limited

$3.43

3.75%

FSF

Fonterra Units

$6.90

4.63%

HBY

Hellaby Holdings

$3.08

5.93%

HNZ

Heartland New Zealand

$0.75

2.78%

The latest GDT auction on March 5 2013 shows that the rise of 10.4% on the Trade Weighted Index (TWI) puts the TWI up 18% for the last three months. The whole milk powder (WMP) price has been was the biggest contributor up a massive 18% and 29.5% over the last three months. Butter milk powder (BMP) was also a strong performer up 14.3% and 16.3% during and over the last three months. Amongst the other major product groups skim milk powder (SMP) also had good gains with up 4.6% and up 10.4% for the last three month. Cheese has been quite volatile, but the strong showing in the latest auction has cheese up 8.3% and is up 11.5% over three months. Despite these great results dairy export volumes fell 12% over January, although this follows a strong pick-up in dairy exports in the last six months of 2012. The drop in export volumes is a trend set to continue and it is expected that dairy export volumes will remain subdued relative to the previous year, with dry conditions in the North Island hampering milk production growth leading to mix fortunes for the dairy industry.

US Agricultural Commodity Prices Price This Price Last Change Issue Issue

Commodity

Units

Live Cattle

USD/Kg

Feeder Cattle Lean Hogs

$2.811

$2.821

-$0.010

USD/Kg

$3.171

$3.108

$0.063

USD/Kg

$1.808

$1.796

$0.012

Greasy Wool

USD/Kg

$12.480

$12.380

$0.100

Corn

USD/ Bushel

$6.993

$6.842

$0.151

Wheat

USD/ Bushel

$7.065

$7.187

-$0.122

U.S. wheat exports for 2013 are projected 25 million bushels lower this month and global wheat supplies for 2013 are raised 1.8 million tons with higher overall production. Global wheat trade is projected higher for 2013 as world wheat feed use is increased 1.3 million tons with 0.5-million-ton increases for Australia, Canada, and South Korea, and a 0.1-million-ton increase for Japan outweighing a 0.3-million-ton decrease for Egypt. New Zealand is expected to add to this increase with wheat feed needed due to the drought. However, lower an expected food use in India, Egypt, and Kenya limit the increase in global wheat consumption. Projected 2013 U.S. corn ending stocks are unchanged this month as an increase in imports and lower exports support higher expected feed and residual disappearance. Corn imports are raised 25 million bushels reflecting the strong pace of shipments reported through January. US beef export and import forecasts for 2013 are lowered based on slower-than-expected shipments in January. US Pork exports are lowered from last month, as export demand has softened. Cattle prices for 2013 are lowered from last month, reflecting slightly weaker demand for fed cattle into the second quarter of the year, hog price forecasts are unchanged from last month.

Livestock Improvement Corp prepares for the change in leadership and on March 1 2013 current COO David Hemara assumed the role of Acting CEO, while an international search for a new CEO is conducted. Mark Dewdney will continue to support David Hemara and the Board until May 31 2013. The share price has come back slightly to $5.60, but way up from the 1 year low on 14 August 2012 of $4.66. Sanford received a takeover offer from Zero Commission the small holding sharebroker with an offer to buy Sanford Limited shares for $4.00 per share. The Board of Sanford Limited advised that it does not endorse this offer. The market price for Sanford shares was $4.34 per share as at close of trading on 4 March 2013 when the offer was announced. Fonterra and Netherlands-based A-ware food group have given the green light to develop a new cheese plant and dairy ingredients plant in Heerenveen in the north of the Netherlands. This did little to the share price only moving it from $6.94 before the announcement to $6.86 afterwards. Heartland New Zealand continues its strong run hitting an all-time high of 75cents on March 12.

This table and information is in no way a recommendation to buy or sell any share but a list of New Zealand agrishares that have the highest dividends. Please consult your financial advisor before entering into any sharemarket investment.

To locate your local Deutz-Fahr dealer, visit www.deutztractors.co.nz

$

PRICE INCLUDES LOADER

86,990

AGROTRON AGROTRO RO K610 A-SPEC

• Deutz Tier e 3 Engine • 24x8 power w shuttle/powershift trans

$

$

89,990 89 9,9

+gst st

43,990

+gst

$

AGROTRON AGRO OTRO K410 A-SPEC --SPEC

• D Deutz eutzz Tier 3 Engine • Po Powershift owerrshift trans 24x8 40kph kph ECO k

PRICE IINCLUDES NCLUDE LLOADER OADER

PRICE INCLUDES LOADER

103,990 103, 3

+gst

AGROFARM 430GS S

• High-vis 4-post cab • P/shift P/shuttle trans.. 40F/40R

+gst

AGROLUX 4.75 A

• True 4 wheel braking • 12-speed synchro trans ns

PRICE IC C IINCLUDES NC NCLUDE LLOADER OADER O

To locate your local SAME dealer, visit www.powerfarming.co.nz

88,990

$

+gst

35,990

+gst

$

PRICE INCLUDES LOADER

PRICE INCLUDES LOADER

EXPLORER 100 GS ROPS

IRON 110 B-SPEC

• Deutz Tier 3 Engine • Wet clutch power shuttle

$

74,990

• Cab suspension • Deutz Tier 3 Engine

$

PRICE INCLUDES LOADER

96,990

+gst

SILVER 110 CAB

• High-vis 4-post cab • P/shuttle P/shift with ‘Stop and Go’

+gst

COMMANDO 603 3 4WD 4W D

• SAME 1000 Series Engine ngin ne n e • 12-speed Fwd & 3 Rev ev tr trans ran ans

PRICE INCLUDES LOADER

To locate your local KIOTI dealer, visit www.kiotitractors.co.nz CS2610 0

DS4510

Tractor and Loaderr Combo

Tractor and Lo Loader Combo

DK901

DX100 DX X100

• 12x12 pow power shuttle trans rans • Flat operat operator platform m

$

49,990 49,9

• Heavy H duty construction const & power steering • 16x16 power shu shuttle (wet clutch) trans

$

Tractor and Lo Loader Combo

59,990 59 99

+gst

28,990 28,9

$

+gst

17,990 17,9 90

+gst

$

• Fwd/rev sshuttle 8x8 trans brakes • Wet disc b

+gst +g gst

• Easy Eas to o operate te HST trans • 3pt lin link linkage a & PTO

B&POW0165

Tractor and Loader Combo

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Capital Tractors Jacks Machinery Truck and Tractor Services Power Farming Gisborne Power Farming Hawke’s Bay

07 543 0021 07 308 7299 07 349 6528 06 868 8908 06 879 9998

HAWERA FEILDING MASTERTON NELSON BLENHEIM

Power Farming Taranaki 06 278 0240 Power Farming Manawatu 06 323 8182 James Trucks and Machinery 06 370 8240 Brian Miller Truck & Tractor 03 544 5723 Marlborough Tractor Services 03 572 8787

WEST COAST CHRISTCHURCH ASHBURTON TIMARU ALEXANDRA

Power Farming West Coast Power Farming Canterbury Power Farming Ashburton Power Farming Timaru Peter Watt Machinery

03 768 4370 03 349 5975 03 307 7153 03 687 4127 03 448 8490

DUNEDIN GORE INVERCARGILL

Power Farming Otago Power Farming Gore Power Farming Invercargill

03 489 3489 03 208 9395 03 215 9039


Gallagher Celebrating 75 Years o

1938

1969

1982

1988

New Zealand’s First Energizer

First Mains Powered Energizer Developed

Total Solution: Mains, Battery and Solar

Gallagher Security is Born

The invention of a mains system meant electric fencing could now cover an entire farm. And the farm machinery side of the business continued to grow including forage harvesters, posthole diggers and rotary hoes.

Looking to provide customers greater flexibility and choice - the company offers a complete range of mains, battery and solar-powered energizers along with a comprehensive array of fence components.

1948

1969

1984

1994

Production in Full Flow

First Export Shipment to Australia

Gallagher Expansion and Acquisitions

Gallagher Diversifies

Gallagher and his small but loyal team began full production of the Battery energizers from an engineering workshop in Hamilton’s Norton Road and added farm equipment like fertiliser spreaders.

In an effort to take electric fencing and the benefits of improved pasture management to the world Bill Gallagher Jnr initiated the export of electric fence energizers to Australia in 1969, to the UK and France in 1972 and to the US in 1974.

Gallagher brings its core engineering strength to a wider customer base through contract manufacturing and plastic solutions via the acquisition of Sunplas Engineering and the launch of Gallagher Plastics Ltd.

With the purchase of Franklin Farm Machinery the company adds gate and gate hardware to its fencing range.

Bill Gallagher Senior shows the pioneering spirit that still drives us today when he designed his first electric fence inspired by a need to stop his horse “Joe” scratching up against the family car.

Recognising that electric fencing had wider usefulness beyond just animal management, the company became the first in the world to enter the perimeter security market using electric fencing.

Unwrap a Check the Gallagher website for more specials each month...

It’s our birthday and w the limited edition M

Be quick offer is on for a limite

www.gallagher.co.nz


of Innovation

1999

2007

2010

World’s First Intelligent Energizer

Animal Management Enters Electronic Identification (EID)

Sheep Auto Drafter Unveiled

Gallagher developed SmartPower, the world’s first intelligent energizer range to monitor fence performance. Animal weighing products were also added to the range to help farmers manage their businesses more closely. PEC Fuel Pumps was also acquired. As well as fuel pumps, PEC (now known as Gallagher Fuel) produced technology products including the Cardax access control system.

Using the Research and development expertise and technology originally developed for human access control for the Security division, Gallagher could also help farmers better manage and monitor their animals. As a result, Gallagher EID reading technology was introduced, allowing farmers to automatically identify and trace animals individually.

Another world first solution that radically reduced the time and labour involved in sheep drafting. The award winning Sheep Auto Drafter is a fully automated weighing and drafting system, quieter than anything else on the market.

2013 Continuing to Redefine What’s Possible 75 years ago Bill Gallagher Senior designed a solution that set in motion a long term commitment to create products that allow our customers to do things they never thought possible. Working alongside customers the team gains valuable insights that inspire the design of market-leading solutions for which Gallagher is now internationally renowned.

2004

2008

2011

The Walk Over Weigh Dairy System

Touch Screen Weigh Scale Revolutionises On Farm Management

Another World First: i Series Electric Fence Systems

Gallagher releases the TSi - a touch screen, integrated weigh scale, computer and animal management system. The TSi provides real time access to all farm records anywhere, anytime, for efficient management decision making.

Recognising farmers need for accurate, real time information Gallagher developed the new i Series Fence Energizer Systems. An intelligent system that can tell the farmer by text where the problem is so it can be fixed before it becomes an issue.

The Dairy Scale changed a traditionally slow process; now farmers could automatically capture cow weights as they walked through the shed at every milking on this stand-alone, automatic walk-over weigh system.

a Birthday Offer

we’re celebrating with the release of MR5000 75th Anniversary Model.

ed time only, while stocks last. Available from your local participating Gallagher stockist.

Today, Gallagher is lead by Sir William Gallagher Jnr, it distributes to 130 markets around the world and has over 1000 staff worldwide all driven to find solutions that make our customers’ lives easier.


Rural News // March 19, 2013

34 opinion editorial

edna

Dry arguments ring hollow AS MORE regions are declared drought zones farmers can only despair of ill-informed comment – mainly by non-farmers and big-city media – showing up the rural/urban divide. It’s a chasm. For example, Primary Industries Minister Nathan Guy was criticised for not rushing home from an overseas trade mission because the drought was the worst in 70 years. (Guy and and primary industries boss Wayne McNee were on a 10-day trade mission to South America with the Prime Minister and business leaders). Speaking in Sao Paulo, Brazil, after a Fonterra-hosted event, Guy said, “I can’t make it rain... this is a very important trip. We are opening some doors here… getting our products into these markets.” Those critics should have been able to see the greater value of the minister forging relationships with those countries than performing mock rain dances back in Wellington! Guy pointed out that the way for the Government to truly make a difference to droughtaffected farmers is to get busy on irrigation. “We haven’t got a water shortage issue; rain falls in huge volumes. What we have is a storage issue. We need to capture and store water more efficiently.” But the opposition to such proposals as the Ruataniwha dam in Hawkes Bay and similar projects in Canterbury show how difficult this will be. The Greens and eco-fundamentalist groups have drawn swords. Then there are the snide comments – chiefly letters to city newspapers and radio talkback – about how much cash help farmers are getting. These sometimes go along with bellyaching about farmers getting welfare while shoppers pay dearly for milk and meat. Few city dwellers would know – as Fed Farmers chief Bruce Wills points out – that farm advisory and counselling services are delivered mostly by Rural Support Trust chapters. Says Wills, “An official declaration [of drought] tells the banks how bad things are. It also gives Inland Revenue discretion on things like income equalisation, but farmers are not excused any tax obligations.” Wills adds that ‘rural assistance payments’ are for genuine hardship, granted only after testing of an applicant’s farm and off-farm income. “In January 2011, during the last major drought, fewer than 100 farmers out of some 25,000 commercial pastoral farms qualified.” Let’s hope rain falls soon where it is needed, relieving us from drought and ill-informed critics.

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

“On the plus side, we won’t have to worry about fencing it to keep the stock out.”

the hound Horizons help ‘green Jafas’ THE HOUND hears that the ‘Green Rig’ – a mobile environmental display owned by Horizons Regional Council – has been sold to Auckland Council. The rig cost $1.2 million, but was sold for $185,000. Farmers hated it for the perceived anti-farming messages it presented. Your old mate reckons that as few farmers inhabit Auckland, maybe the Queen St farmers will be targets for an anti-farming message from the new owners. Meanwhile the $1.01 MILLION lost by Horizons on this fantasy trip is yet another cost to struggling rural ratepayers.

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

Working? FONTERRA HAS yet again shown it’s incompetence in communications; the Hound’s mates are shaking their heads in disbelief. Late last month, after having invited media to attend a briefing on its latest scheme – it not only turned journalists away at the door but also cut-off dial-in attendees. Apparently those journos who braved the teleconference – with an overseas operator connecting callers – for a second time then only got another ten minutes air-time, only to be cut-off again. Anyone would think Fonterra chair ‘Little Johnny’ Wilson and head honcho Theo Spierings had something to hide!

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 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628 WEBSITE PRODUCER: James Anderson .................... Ph 09 913 9621

Top shearer and bloke! YOUR CANINE crusader is quick to point out the regular cock-ups, conspiracies and incompetence when they occur; but he’s equally happy to highlight positive news. He hears that this year’s Golden Shears winner Rowland Smith donated his $3000 prize to cancer research in honour of his late mother. The Hastings 26-yearold, who lost his mum to cancer, took the crown in the Masterton shearing competition at the beginning of the month. Smith’s generosity earned a standing ovation from the 1000-strong crowd. And rightly so!

Biological BS!

Says it all!

WITH A couple of wellknown biological farming evangelists doing the rounds in New Zealand recently, your old mate can’t help wondering whether there’s something in what they say – literally. After all, why else would biological farmers be so happy with the results? There’s so much about building soil fertility — usually without adding any of the macro nutrients proven to be essential for vigorous plant growth – that the plant food must be coming from somewhere. Maybe it’s in all the bullshit they spread!

A MATE of yours was highly amused during a recent internet surf, to visit the Ministry for Primary Industries website [see screenshot]. The Hound’s spy thought the “Blah, blah, blah” heading in the left hand column was entirely appropriate, considering some of the bureaucratic bovine scatology she’s heard coming out of this ministry over the years.

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 31.12.2012

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 // March 19, 2013

opinion 35

Quad bikes wrongly and badly maligned QUAD BIKES should not be portrayed as killing machines; they are simply part of an evolutionary process. Many of the news media critics of these magnificent machines have never been close to one. Most farms today have one if not two quads; they are essential to onfarm management. They are greatly versatile and simple to operate. Unfortunately these attributes encourage some operators to push the limits. No quad is designed to pull loads several times its weight such as baleage. It can, but the risk factor increases dramatically. Quads can also traverse amazingly steep country. But in these potentially dangerous conditions some sort of training should be mandatory for the unskilled and/or inexperienced. Similarly, wearing helmets and fitting roll bars will become compulsory.

quad by the 1980s was here to stay. By this time there was a growing realisation safety issues could not be ignored. With the huge growth in numbers,

quads have almost become invincible. With the extra numbers came the inevitable increase in accidents. It’s interesting to note that more older riders

are being injured and are taking longer to recover. Researchers suggest older people don’t bounce back like younger riders. These older riders were more

likely to have learnt quad riding by trial and error. As a younger generation comes into power there will be more research and safety

changes. These are already happening. • John Stirling is a south Otago farmer who formerly was agricultural editor of the Otago Daily Times.

as a wimp. The muffs disappeared. Today all those wimps probably still have good hearing! The quad has played a huge role in the farm transport evolution, certainly taking out the horse. However, the early bikes were three wheelers and extraordinarily dangerous. But they still had a convenience and being something of a big toy made them attractive to farmers. The late west Otago doctor Peter Snow began a campaign to get rid of or modify trikes because they were lethal. Snow accepted he was seen as a spoil-sport, but he was

As a younger generation comes into power there will be more research and safety changes. These are already happening. Helmets are something the older generations don’t want to know about. They are sure to be resisted or ignored. So people in charge are likely to adhere to that wise saying from chairman Mao Zedong, “indoctrination is most successful when working with the young”. Farmers know they are legally responsible for the health and safety of their staff. For the sake of young riders especially, officials from the Department of Labour can include quad safety on their check lists. The death of a young person on a quad is a tragedy – more so when it could have been avoided. Training and safety requirements will eventually become accepted, like tractor safety frames. I recall an occasion when a contractor turned up wearing ear muffs for driving his tractor. Another employee referred to him

the one who stitched riders’ skin and flesh back together. About then, the early 1980s, the quad came on the market. It was seen as a breakthrough even though built for the American hunting/recreational market. It had four wheels, and looked as if it could readily be adapted for New Zealand farming. Almost overnight this mini-tractor added a new dimension to farming. Here was a machine that could go anywhere, at first called ‘all terrain vehicle’ (ATV). Part of the problem was the perception these bikes were error-tolerant. This was not so. Going from a recreational machine to a farm workhorse the quad had big limitations, especially load carrying. But the quad took over from the horse, the motorbike and the three wheeler. As a main player in the transport revolution, the

Malcolm Ellis – Bull Acquisition Manager

As a farmer making breeding decisions I always wanted the best, and Premier Sires gave me the top ranked LIC progeny tested bulls. With the advent of genomics, there was a need to consider the issues of risk and reward. Reliability has been an issue, and some of the early results from young sires did not meet expectation. With the lessons learned over the past several years LIC has taken the opportunity to review the structure of the Premier Sires teams. The Daughter Proven option remains unchanged, and there is still an alternative for those wanting to access the cream of the young sire crop. This is called the Premier Sires “Forward Pack” and it is comprised of the top ranked bulls from both categories – the best Daughter Proven sires complemented by a selection of young sires that we think tick all the boxes – outstanding ancestry, proven cow families, depth of pedigree and genomic evaluation. I always demanded the best, now I’m going to deliver it.

www.lic.co.nz


Rural News // March 19, 2013

36 opinion

Agricultural innovation answer to challenges Nathan gu y

I’D LIKE to talk about what New Zealand has to offer and about innovation in the New Zealand primary sector. One of the biggest

challenges the world faces in the coming decades is feeding its rapidly growing population. Growing markets, particularly in Asia, and the expansion of the global middle class, means agricultural

producers will struggle to keep up with demand. The world’s biggest challenge can also be a nation’s biggest opportunity. As a nation of over 4 million that feeds about 40 million, New Zealand

mouth-watering steaks or outstanding wines, such as the ones displayed on the banner behind me. New Zealand’s reputation is built on trust and integrity. It is vital that we retain this, so we have

is well placed to take hold of this opportunity. New Zealand prides itself on a world class reputation for producing high quality primary produce. But this reputation is not earned simply by producing

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developed a world leading food safety regime. It is why we carefully manage the impacts of production on our environment, and strive to have a world class animal welfare system. We need to assure our customers that New Zealand’s produce is made in a high quality, safe, ethical, and environmentally sustainable manner. Maintaining this reputation is paramount for New Zealand’s economic future. The New Zealand Government is focused on economic growth, particularly in the aftermath of the global financial crisis and the earthquakes in Christchurch. As Minister for Primary Industries, a key focus of mine is to boost the productivity and competitiveness of New Zealand’s primary sector. In the 1980s New Zealand underwent a comprehensive structural reform. These reforms removed agricultural subsidies along with a wide range of other industry protections. Because of these reforms, New Zealand is now one of the most efficient agricultural producers in the world. Following these reforms New Zealand primary sector productivity has doubled. For example, today we produce the same amount of lamb meat that we did prior to the reforms, but with half the number of sheep. While this is good progress we need to do better. In international trade New Zealand is at a distinct disadvantage. We are a small country, with a small population, located in the middle of the South Pacific Ocean at the bottom of the world. But as I’ve said, your biggest challenges can also be your biggest opportunities. Our trading disad-

vantage has meant that we need to do more with less and to work smarter. Innovation in the primary sector is a key priority for me and for the New Zealand government. That is why we launched the Primary Growth Partnership, or the PGP. The PGP is a partnership between industry and government. We jointly invest in research and innovation that will deliver long term economic growth and sustainability to the primary sector. There is an exciting variety of projects underway, including selective mussel breeding, steep land forest harvesting, improving pasture quality and increasing the value extracted from animal carcasses. The Prime Minister and I have a brought a number of our leading businesses with us on this trip, all on the cutting edge of agricultural innovation. So why have we come here? Mexico has astonishing potential as one of the world’s major emerging economies, on the edge of a thriving Asia-Pacific region, with strong export growth and a government focused on driving further economic growth. Trade relationships between New Zealand and Mexico are growing stronger. New Zealand can also learn a lot from Mexico, just as I hope Mexico can learn from New Zealand. Mexico’s reputation for a high quality horticulture industry is well known in New Zealand. I want New Zealand to be a part of the Mexico story, just as I want Mexico to be a part of the New Zealand story. An edited version of a speech given by Primary Industries Minister Nathan Guy to ‘Innovation in Agribusiness’ forum, Mexico.


Rural News // March 19, 2013

opinion 37

Why are farmer co-ops being so unco-operative? DROUGHT BEHAVIOUR renders deeply questionable the concept of cooperative companies being for the benefit and fair treatment of shareholders. The National Institute of Water and Atmospheric Research (NIWA) is warning that by 2040 ‘time spent in drought’ is likely to be double what it is now. After the 20072009 drought, estimated to have cost the country $2.8 billion, farmers were urged to build more drought resilience into their farming systems. Measures such as water storage, irrigation, shifts in production timing, experimenting with pasture species and fodder crops, or moving operations to less severely affected regions were suggested. This overlooks the fact that these measures are costly, potentially risky, time consuming, and, perhaps of even more importance, that since the last drought farmers have been under pressure to pay off debt. The last drought occurred during high payout ($7.90/kgMS) for dairy. Since then the payout has fallen and costs of production have increased. The schedule price for meat has also decreased, and Beef + Lamb NZ’s latest predictions are that farm income before tax will be reduced by 54% this season. Government declarations of drought in different regions might be of assistance in ensuring farmers know they are not alone, but the rest of the package is of marginal value. Of more use might be an investigation of drought behaviour in the so-called farmer-owned cooperatives. Fonterra has confirmed

has shown that ‘groupthink’ dominates and a new-comer is generally prevented from radical behaviour by those with institutional memory. If farmers want a change, they can take

a milk price of $5.50, the RD1 price of palm kernel expeller has increased from $260 to $360 in the last few weeks, and the schedule price for cull cows has dropped from about $700 to $300-400. It would appear that instead of having the needs of the farmer first and foremost, the companies are following a traditional business model of seizing an opportunity to make additional profit. Although some of this profit might be returned as a dividend to farmers, immediate cash flow positions are deteriorating now. Nationwide, late last year concerns were expressed at strategies which involved sending money to establish businesses offshore when overseas investors are developing processing companies in New Zealand “because the milk price is cheap”. Internal competition and undercutting in international markets was also raised as an issue, as it has been for many decades. The answer lies in farmers’ hands. If they don’t like the company strategy, a vote of ‘no confidence’ in the board would create a change. Most boards have regular re-elections, but the number of members elected or re-elected in any year is usually small. This ensures institutional memory is preserved, but it also leads to ‘business as usual’. Research with monkeys and bananas

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action. Of course there is a risk: alternative strategies might not result in immediate benefits. But current strategies appear not to be delivering what individual farmers need. And it is the individual farmers who

are suffering. Few people in cities are aware that the $2.8 billion loss to the country in the last drought was carried by 45,000 farmers and their families, and some of the agricultural support industries.

Government help is needed to explain exactly who is suffering, to investigate who is profiteering, and to underscore the fact that food prices must increase to allow farmers to be more sustainable

– economically as well as environmentally. And farmers can make their feelings heard at the next board elections. • Jacqueline Rowarth is Professor of Agribusiness, The University of Waikato.


Rural News // March 19, 2013

38 opinion

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fident the banks will work with them in return. It also means that Inland Revenue has discretion on things like income equalisation, but you are not excused any tax obligations. Though there are ‘rural assistance payments’, I couldn’t get one. These are for genuine hardship and test both farm and off-farm income. In January 2011 during the last major drought, fewer than 100 farmers out of some 25,000 commercial pastoral farms qualified. Support from the Ministry for Social Development and Inland Revenue may prove more beneficial to farm workers as drought reaches into our communities. Federated Farmers has activated its 0800 DROUGHT feed line and industry-good bodies like Beef+Lamb NZ, FAR, DairyNZ, and the Ministry for Primary Industries, have released vital advice. DairyNZ indicates large swathes of North Island dairy production is now down between 15-20% on 2012. We are not anticipating positive news from Beef+Lamb NZ’s coming mid-season update and to top it all off the latest overseas merchandise trade statistics were ugly. Given how tough things are, I can but shake my head at the New Zealand dollar. A gravity defying dollar ignores that with a fair proportion of the dairy season left to run, dairy farmers are either on once-a-day milking or con-

sidering drying-off their cows until August. When you consider that dairy and meat-and-wool farmers rapidly destocked over summer, New Zealand’s two leading exports are under pressure. It is why Federated Farmers agrees with the Reserve Bank governor Graeme Wheeler: New Zealand’s economic fundamentals provide no justification for the overvalued NZ dollar. Of course we could print money, but that is like throwing a hand grenade into a confined space. Like Graeme Wheeler, farmers are telling the Government it must take the pressure off the dollar through prudent spending choices. While a strong Kiwi is here for a while, investors need to know how risky is the buying of an overvalued Kiwi. Yes our economy is ‘less bad’ than the sequestered United States or Europe, where dole queues grow daily, but it is still bad. The dollar is why we need policy reform to help exporters become as competitive as they can be – making the best of a rum situation. Right now our dollar is a balloon and drought declarations ought to be the sharp pin. Given that the droughts of 2007-9 cost New Zealand $2.8 billion and were tipping points for the last recession, investors buying the Kiwi ignore reality at their peril. • Bruce Wills is the national president of Federated Farmers.


Rural News // March 19, 2013

management 39

Cali controls old and new and rew swallow andrews@ruralnews.co.nz

NOW’S THE time to be hitting Californian thistles with chemicals down south, says Ravensdown, while in the North Island release of an – as yet – unproven thistle bio control continues. Southland and Otago farmers in particular are facing an onslaught from Californian thistle and weed wiping or boom spraying now will give good control, says Ravensdown agrochemical technical manager Nick Roulston. Meanwhile, Bay of Plenty Regional Council staff have released Green Thistle Beetles at two sites in the Western Bay area following releases elsewhere in the region. The beetles are one of a number of biological agents being trialled. This follows some successful bio controls established, such as Ragwort

Thirsty for thistles: a Green Thistle Beetle larva.

Flea Beetle (Longitarsus jacobaeae) which has been helping keep a lid on Ragwort (Jacobaea vulgaris) in the region for 20 years. “Establishing biological control agents in areas where pest plants are rife can work well for both the landowner and the environment,” says

Worms redistribute P IRISH RESEARCH shows earthworms do valuable work in redistributing phosphorus from fertiliser throughout the soil profile. “By feeding on material on the soil surface, earthworms can mix phosphorus present at the surface with soil below the surface,” explains Dr Rachel Creamer, of national agricultural research body, Teagasc. Not only does this help increase availability of the nutrient to plants, it reduces the risk of it being washed away into streams and local waterbodies, which can have harmful effects on the environment, notes Teagasc.

the council’s western land management manager Robyn Skelton. “We are hoping these beetles will establish themselves and help us in our efforts to control these pest plants in the future.” Skelton’s colleague Andrew Blayney says feedback from landowners on the biological control agents has been “really positive.” “Some of the plants they tackle are aggressive and extensive and can significantly affect our environment, economy and our people. If these beetles establish themselves as we are hoping, then we will look at introducing them to other properties further down the track.” Te Puke farmer Carol Burt’s property is one of the sites where the Green Thistle Beetles have been released. “We’ve had releases of other types of

BOPRC’s Ryan Standen and farmer Carol Burt release the thistle-eating beetles.

agents on our property before and had good success with them. In particular… in slowing down the spread and reducing the density of… Nodding Thistle and Scotch Thistle.” Roulston says Californian thistles cut pasture yield by competing for light, water and nutrients. They also reduce effective grazable area – because stock won’t graze close to the plants. He adds that the best control from herbicides is achieved just after most plants finish flowering – as the flow of sugars from photosynthesis to root rhizomes helps pull the chemical down

into these storage organs, limiting ability to re-grow from rhizomes next spring. “Californian thistles spread underground at a rate of 1.5m/year, with a large amount of energy being stored in the root rhizomes,” he explains. “Practically, this means no matter what control method is used, it must be done over multiple years to ensure effective control.” He says clopyralid-based products provide excellent control and result in increases in grazing available – with fewer thistles far exceeding any costs.

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Rural News // March 19, 2013

40 management

Aiming to be the best in and rew swa l low andrews@ruralnews.co.nz

EVER HEARD people talk about their “BHAG”? It stands for Big Hairy Audacious Goal and while the term wasn’t used at the Lincoln University Foundation Farmer of the Year field day earlier this

month, it could very well have been. “We want to be the best multi-farm dairy business in the world,” Synlait Farms chief executive Juliet Maclean told the crowd in her introduction. As the day progressed six “pillars” of the busi-

Juliet McLean

ness strategy to achieve that were relayed in six workshops: cows, grass, people, profit, environment, and innovation. “If the things we are looking at doing… don’t fit into one of those key areas then it’s likely we shouldn’t be committing any time to them,” said

Maclean. Michael Woodward, Synlait’s contract milker on its original property Robindale, presented the cow pillar where the core aim is to have the herd producing it’s liveweight in milksolids every season. With an average liveweight of 475kg and his-

synlait farm facts ❱❱ 13,000 cows producing 5.4mKgMS/ year off 3,900ha ❱❱ 14 farms totalling 4,749ha, mostly around Te Parita, central Canterbury ❱❱ 85 staff, including contract and sharemilkers ❱❱ Separate company to Synlait Milk

torical average output of about 400kgMS/head “we have a fair way to go,” he acknowledged. However, it seems strides towards that 1:1 milk to liveweight goal have already been made through better body condition scoring and action, and splitting herds. For example, heifers have their own mobs. “They always struggle up against the big eaters.” Making a late-calving mob – those due in October - at the start of winter so they have at least 90 days dry and are in “fantastic condition” come calving has also paid dividends: 55% are back in the early calving bracket for next season. Mixed age cows are split into high and low production herds throughout the season with the mobs redrafted after every herd test to make most efficient use of feed. The opportunity to transfer cows between farms if there are surpluses and deficits on different properties is also taken. Supplement use isn’t high: Woodward told Rural News this season they’ll use about 350kgDM/cow in total: silage and grain. Despite that modest input over grass, and a budget of 418kgMS/cow, “this season we’re on track

for 460kgMS,” he told the field day. It’s not all about quantity across the farms either: running an A2 herd, and other herds producing specialist milks for (now separate business) Synlait Milk, mean cow-driven quality traits add value to the volume. Woodward says he believes this season’s output is “a direct result of that body condition scoring”, reflecting on last season’s February shift of anything below BCS four onto a 16-hour milking roster, which saw them gain 0.6 of a condition score in three months. With herds in even better condition this year, “next year I think we’ll really see a huge rise in per cow performance,” he added. Weekly feed budgets for next year are already drawn up, as Woodward’s colleague Brett Walter explained in the grass workshop. These are monitored weekly against actual covers throughout the season, and even more frequently during spring. Walter outlined the detail that goes into their spring pasture planning, and stressed the importance of getting it right so cows hit their potential peak, and consequent season-long production. “It’s about doing the planning and putting it into action and monitoring.” Maclean threw that back at the

Area checks: a handheld GPS, available for about $200, is used.


Rural News // March 19, 2013

management 41

the world

Delivering results: a focus on achieving target condition scores is paying in the vat.

audience. “The Synlait challenge to you is if you’re not using a spring rotation planner now, have a go at it and let know if you have a better spring because of it.” In the following innovation session, she threw down an even bigger gauntlet to the whole of the New Zealand agricultural industry. “If we don’t start innovating more effectively New Zealand’s advantage is going to slip away… For us to be the B team is not good enough. We’ve got to be the A team. We’ve got to be there or we will die.” An example of innovation by Synlait presented on the day is a trailermounted herring-bone stall for teat-sealing heifers away from the home farms. “When you’ve got 2500 heifers away teat-sealing isn’t very practical.” However, the trailer solved the problem, allowing them to do 250 on a standard day, or over 300 at a push. The result is when they enter the herd

mastitis incidence has been slashed from 19.5% to 4%. While that’s a successful innovation that’s paying dividends, Maclean said she’s disappointed that when they analysed what they’d done over the years, they could only identify 20 such ideas. “Only 20 in 12 years isn’t a great hit rate… we’ve now set ourselves a target to come up with ideas and act on them much more frequently than that, or we’re not going to be the A team.” Looking off farm, and even outside agriculture, will prime the ideas and innovations pipeline, she suggests. “Sometimes we all get a little bit insular.” Involving the whole farm team is also key. “Great ideas frequently don’t come from the leaders of the business... making sure we mix enough with the people all the way through the business is really important.” Synlait livestock and

Innovative solution: Synlait’s heifer teat-sealing trailer.

innovation manager, Dave Campbell, relayed a similar message in the ‘environment’ session, which he admitted was taking a “slightly different angle” to what visitors might have expected under that heading.

“I’m going to talk about the work place environment. That’s really important to us at Synlait Farms.” Individuals are rarely to blame for problems that occur: it is the systems and structures in which

they’re placed that are the root cause of things going wrong. “We don’t go and blame; we go and ask ‘why?’. And ‘what can we do to rectify the problem?’… It is about the system and the leader-

ship of that system. Let’s not blame the people but examine the system and work out how to make it better.” In the ‘people’ session, Synlait’s people and performance manager Josie McKenzie illustrated the

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key difference between telling people what to do, and telling them the why and the how. “People don’t buy ‘what’ you do; they buy ‘why’ you do it.” @rural_news facebook.com/ruralnews


Rural News // March 19, 2013

42 management Craigmore Sustainables is a specialist investment manager of NZ farmland and forestry, with a rapidly growing portfolio of assets – currently including 15,000 hectares of land. For more information visit www.craigmore.com The following are new opportunities and represent the next phase in the continued growth of the business, which reflects the growth prospects for the NZ agricultural sector.

Agricultural Financial Analyst • Commercially focused senior level role undertaking a range of detailed and specialist analysis and providing support to the management team.

Accountant - Agriculture • Accounting services role managing the accounting and reporting for various farming and forestry entities.

Office/Project Administrator • Broadly based senior administration and project support role with involvement across the business operations. For more information regarding these exciting new opportunities and to make an application please see www.echelongroup.co.nz Enquiries can be made by contacting Kerri Jennings 03 335 3273.

First-timers triumph Craigmore Sustainables is a specialist investment manager of NZ farmland and forestry, with a rapidly growing portfolio of assets – currently including 15,000 hectares of land. For more information www.craigmore.com

following are newawards opportunities and representcome thick and fast. On this and the following It’s the time ofThe year when nights the next phase in the continued growth of the business,relays which reflects the growth prospects pages Rural News highlights fromforrecent Dairy Industry Awards and Ballance Farm the NZ agricultural sector. Environment Awards events. Agricultural Financial Analyst • Commercially focused senior level role

Both the McPherson’s ANOTHER WEEK, undertaking a range of detailed and specialist analysis providing support to the andand Courtman are Dairy another suite of big nights team. Industry Awards debufor North Island dairy management tants. - Agriculture farmers as the annual Accountant • Accounting services role managing the accounting “We’re stoked,” awards season gets into and reporting various farming AndrewforMcPherson toldand forestry full swing. entities. Rural News. “We put a hell Russell and Nadine of a lot ofAdministrator effort in but to Meade, Whakatane, Office/Project • Broadly senior and winbased first time wasadministration just landed the Bay of Plenty project support role with involvement across unbelievable,” he added. region Sharemilker/ the business operations. While they will winter Equity Farmer of the Year For more information regarding these exciting 500 cows, as of last week (SEFOTY) title early last new opportunities and to make an application the dry meant they were week while Andrew and please see www.echelongroup.co.nz down to milking 450 of Michelle McPherson took Enquiries can be made by contacting Kerri their herd on the farm the same title in Waikato Jennings 03 335 3273. March 8, and James Court- of Michael and Donald Macky, near Te Awamutu, man, Ngatea, the AuckMichelle and Andrew where they’ve been land/Hauraki mantle McPherson. sharemilking the past March 6. three seasons. “And we’ll be down to 430 in a week’s time.” That’s despite putting in about 9kg of feed (maize and grass silage plus PKE) to supplement the 3-4kgDM/head of grass they’re allocating. “It doesn’t look like there’s a lot in there for the cows but the dry matter is really high and they’re not going hungry.” The couple are both 40 and, with nine years’ sharemilking under their belts, aim to have their own 360-400-cow farm in 5-10 years. The plan in the meantime is to look for a smaller operation to buy that they can employ a

manager to run while they stay sharemilking to pay down some debt. Such a move would also “provide a stepping stone for our staff,” they point out. Ideally they’d like to stay in the Waikato, but haven’t ruled out moving further afield if need be. “It’s a great dairying location and we’ve got fabulous farm owners.” Meanwhile fellow firsttime entrant Courtman is just 28 years old. “I entered the awards… to challenge myself, to develop better goals, and to try and win!” He’s currently 23% sharemilking 870 cows for Mark, Dianne, Richard

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management 43

in dairy awards Tim Douglas, Whangerei, took the SEFOTY title, Niall and Delwyn McKenzie, Wellsford, the Farm Manager award, and Jake Thomson the Trainee title. The New Zealand Dairy Industry Awards are supported by national sponsors Westpac, DairyNZ,

Record entry across all regions

Ecolab, Federated Farmers, Fonterra, Honda Motorcycles NZ, LIC, Meridian Energy, Ravensdown, RD1, and AgITO. All SEFOTY and Farm Manager winners host field days. Dates and details on www.dairyindustryawards.co.nz

This year’s Dairy Industry Awards attracted a record 566 entries, up from the previous best of 525. The Sharemilker/Equity Farmer category was up five at 144 entries, Farm Manager of the Year had 171, and Trainee 251. “It’s the most entries we have had in both the farm manager and the dairy trainee contests, with the trainee contest in particular just going from strength to strength,” says national convenor Chris Keeping.

Four more North Island regional results were to come when this article went to press: Central Plateau, March 13; Taranaki, March 16; Manawatu/ Horowhenua/Rangitikei, March 20; Hawke’s Bay/Wairarapa, March 21. South Island awards nights run bottom up from Southland, April 5 and Otago, April 6, to Canterbury/ North Otago April 9 and West Coast/ Top of the South April 11. The National Awards night is May24, Wellington.

Russell & Nadine Meade.

and Karyn Townshend at Ngatea and has a Bachelor of Commerce from Lincoln University plus work experience on farms in Australia and Chile. He aims to own up to 30% of a 200,000kg milksolids business within two years and 100% of the business by the time he is 35. “I believe the strengths of the business are its focus on business operating costs and executing the production plan, which happens because of good skill sets and strong accountability.” The Meades 50% sharemilk their 220 cows for farm owner Barbara Sullivan, and unlike the McPhersons or Courtman, are no strangers to the Dairy Awards, having won the2010 Farm Manager of the Year title in the same region. “One of the many benefits we perceive this competition offers us is in motivating us to constantly examine our business to ensure that it is a sustainable, productive and competitive operation,” they say. “It also gives us recognition within our region and helps improve and publicise our dairy farm-

ing reputation.” Russell has been in the industry most of his life, having grown up on a dairy farm, and Nadine has embraced the dairying life since the couple met in 2006. While she still works off-farm, for Carter Holt Harvey, her management skills are pivotal to the farm’s operation. “We believe the greatest strength that our business has is our complementary skill set. This makes it easy to align responsibilities and ensures that all aspects of our business are attended to and are managed by the best person for the job.” Other title winners in Bay of Plenty were Chris Mexted, Farm Manager of the Year, and Thomas Chatfield, Dairy Trainee of the Year. In Waikato, Gary McFarlane, won Farm Manager of the Year, and Thomas Herbert, Dairy Trainee of the Year, while in Auckland/Hauraki Kylie and Michael Cox are Farm Managers of the Year, and Mathew Whittaker Dairy Trainee of the Year. Northland kicked of this year’s round of awards nights on Mar 2, where brothers Ian and

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44 management

A brace more BFEA winners

Horizons region Ballance Farm Environment Award Supreme title winners, Curwen and Marija Hare.

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A HILL farm in the west, and a 5000ha station in the east are the latest winners in the annual round of regional Ballance Farm Environment Awards. Hawke’s Bay’s wellknown Smedley Station and Cadet Training farm landed the Supreme title in the awards’ East Coast region while Curwen and Marija Hare, Waituna West, won in Horizons for their “impressively balanced approach” on their 275ha (230ha effective) farm north of Feilding. Last year the Hares’ farm ‘Ewanrigg’ wintered 1050 ewes, 350 hoggets and 200 dairy heifer grazers on contour that ranges from flat to moderately steep. BFEA judges praised their “commitment to detail” and use of expert knowledge to steer their business through a period of substantial debt. Judges also noted use of a Horizons Regional Council Sustainable Land Use Initiative plan (SLUI),

which had a major effect on how they run the farm allowing for its natural limitations, including steep contour, varied soils, wind exposure and limited natural water. “This is an excellent example of adapting outside knowledge to maximise production and manage within some considerable natural limitations, without having a detrimental effect on the environment,” the said. Ewanrigg was bought by the Hare family’s Tuatahi Farm Partnership (which includes Curwen’s parents) in 1982 to complement the original farm, Tuatahi, which was settled by Curwen’s grandfather in 1894. Six years ago the Hares made the difficult decision to sell Tuatahi, downsizing to the one farm. Since, Curwen and Marija, who have three adult sons, have substantially subdivided the property and fenced 7km of steep gorge under their

SLUI plan, so nearly 12% of the farm is now retired from production. Permanently flowing streams are also fenced, and judges praised riparian management and plantings. While natural water isn’t abundant what is available is “very well managed in terms of quantity and quality,” they said. Stock water is supplied by a two-dam system, the top dam acting primarily as a silt trap. About 75% of water is gravity fed to troughs. A solar-powered system is used to pump water from the dams to a storage/header tank before distribution to troughs. High stock productivity is achieved with careful grazing management and mixed pastures including chicory and plantain which boost lamb and dairy-grazer weight gains. Meanwhile on the other side of the North Island, East Coast BFEA Supreme Award winner Smedley Station and Cadet Training Farm was noted for

setting and achieving high benchmarks. “As a working farm Smedley not only practises profitable and sustainable management, it also teaches this ethos to tomorrow’s agricultural leaders,” said awards judges in that region. Smedley was bequeathed to the Crown in 1919 by Josiah Howard who wanted the farm to be used for agricultural training. Today the 5054ha (3186ha effective) sheep, beef and deer property near Tikokino, northwest of Waipukurau, is home to 22 cadets who get a wide range of learning opportunities living and working on the property. It’s managed by Terry and Judy Walters. Last year the mainly rolling to steep hill-country station wintered 28,500 stock units, including 11,500 ewes, 500 breeding cows 365 breeding hinds and 450 velveting stags. As well as being


Rural News // March 19, 2013

management 45 Farm environment awards agenda

The judging process

Tauranga dairy farmers Dennis, Judith and Gordon McFetridge were Supreme Winners of the 2013 Bay of Plenty Ballance Farm Environment Awards (BFEA), the first of this year’s round of regional awards announced. A field day will be held on their farm March 26. Canterbury’s awards night is next on the BFEA agenda, March 21, followed by Northland March 27, Waikato April 3, Southland April 10, Otago April 12, and Greater Wellington April 18. The National Sustainability Showcase involving all nine regions’ Supreme winners is in Hamilton, June 22.

Members of judging teams are chosen for their specialist skills, knowledge and experience in the farming sector, typically coming from organisations such as Federated Farmers, Landcare Trust, Farm Forestry Association, conservation boards, banks and regional councils. Farm consultants and Ballance technical sales representatives are also frequently involved. Judging criteria are extensive and encompass the whole farm system. Judges spend time on farm with the entrant, aiming to get a complete understanding of the farm and its management. Entrants are encouraged to discuss their goals, achievements and weaknesses, to get the most benefit from the process. Judges are interested in entrants’ plans, reasoning behind decisions made, and success of strategies to date. They look at the way land is managed and what the production goals are. A range of questions are addressed on each farm: • Are production targets achieved?

Judy and Terry Walters manage the 2013 East Coast Farm Environment Award’s Supreme title winning Smedley Station and Cadet Training Farm.

a training facility, it hosts a wide range of visitors and interest groups. Walters was a stock manager on Smedley prior to his appointment as manager in 2002. Since then the station has consolidated, selling outlying blocks and buying two large neighbouring stations – Onepoto and Ridgelands –which are managed separately but with activities dovetailing with the Smedley block. The station continues to fence, retire and protect areas of native bush, with 150ha transferred into QE II national covenants in the past decade. Cadets are heavily involved in this bush protection proj-

ect which instils them with good environmental values. Judges said Smedley Station owes much of its rich diversity to its close proximity to the Ruahine Forest Park, and the foresight of early management decisions to retain large areas of native bush. “Hundreds of hectares of retired indigenous bush and well-maintained pastures dotted with totara that have been retained for shade and shelter help make Smedley an extremely attractive property.” Biodiversity has been further enhanced through the protection of freshwater ecosystems.

“Smedley has banned commercial eeling, many of the property’s waterways are protected and a wetland enhancement project is underway.” Soils are carefully man-

station’s 180ha of production forestry, which is maintained to a high standard by cadets. Horses have always been a key part of life on Smedley Station and cadets learn how to break in and train station hacks. Smedley Station and

aged to reduce the risk of erosion, and the station operates a nutrient budget that, judges said, “is informed by excellent record keeping”. Judges also noted the

• Are natural features protected and enhanced? • Is land use most appropriate for land type? • How are waterways managed? • What habitat enhancement is there? • How energy efficient is the farm? • What is the pasture and crop health status? • How is farm effluent managed? • How is general waste disposed of? • What’s the nutrient management strategy? • How are weeds and pests controlled? • What animal husbandry practices are used? • How is agro-chemical use managed? • What projects are planned? Questions asked on any farm will be tailored to individual ventures, but in all cases judges are looking for examples of profitable farming married to long-term environmental and economic sustainability.

Cadet Training Farm also won the Ballance Nutrient Management Award, Beef+Lamb New Zealand Livestock Award, Hill Laboratories Harvest Award and Donaghys Farm Stewardship Award. A BFEA field day will be held on Smedley Station

on Wednesday March 27. The Hare’s also won a couple of category awards: the Beef+Lamb New Zealand Livestock Farm Award and the WaterForce Integrated Management Award. A field day date was still to be set when this article went to press.

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Rural News // March 19, 2013

46 animal health

Act fast to save twisted gut dogs andr ew swal low andrews@ruralnews.co.nz

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versity senior lecturer Dr Kate Hill. Gastric dilation and volvulus – volvulus is the twisting part; gastric dilation alone is the bloating – is second only to constipation in terms of nontraumatic causes for dogs being taken to a vet clinic, a survey by Hill and colleagues found. “It’s the second most common non-traumatic cause for dogs being seen by vets, and the most common cause that results in the loss of the dog,” she told Rural News. An unknown is how many working dogs, typically Huntaways, die or are euthanised on farm due to the condition, but given the onset is rapid and often occurs at night, it’s “probably more common than the numbers we actually see at the vets,” she adds. “When you talk to shepherd’s it’s quite common that they’ve found a dog dead in its kennel or motel in the morning. It does sometimes happen during the day and during work, but less often.” A big meal seems to be a risk factor, especially where the dog has “got into something” by accident, such as a carcase or feed bin, and engorged itself. “Whether they do this because they’re hungry or it’s just a scavenging behaviour we don’t know, but trying to prevent scavenging and risk of engorging will reduce the risk [of twisted gut].” Feeding twice a day, instead of once at night, seems to reduce risk from planned feeds but the practicalities, and possible consequences, of morning and night feeding on-farm would need investigating before it could be recommended, says Hill. “If they’re fed and then worked, what we don’t know is how long after feeding it is safe to work or exercise them, so we’re not saying feed twice a day at this stage.” One risk factor some farms might be able to eliminate is a raised feed bowl.

“Sometimes we’ve seen dog runs with the bowl on the door… it would be worthwhile moving it lower.” Warning signs a dog is developing the condition are discomfort, panting, bloating, and reluctance to work or even walk around. “But sometimes the dog’s rib cage goes past the stomach so you may not see any swelling so much, just that the dog is uncomfortable, panting and not walking around.” Deep chested dogs such as Huntaways and German Shepherds (aka Alsatians) are much more prone to the condition than heading dogs. Studies of incidence in pet dogs suggest anxiety is another trigger, but whether that can be extrapolated to these working species is unknown. If a dog develops symptoms, surgery within five hours of onset was found to have greatly increased chance of survival in the Massey survey, and that 65% of all dogs with the condition seen by vets were saved. Hill notes that’s a lower success rate than some overseas studies found but given many of the farm dogs developed symptoms overnight and were outside that five hour threshold before they were seen, it is probably quite a good result. In general, surgery is necessary costing upwards of $1500, sometimes as much as $3000, depending on the complexity of the procedure. Hill acknowledges some farmers or shepherds will opt for euthanasia rather than incurring such costs. She suggests whether to take that option should be driven by the age of the dog. “With a younger dog the prognosis for getting it back into work is really good.” • The International Sheep Veterinarian Conference, Rotorua, Feb 18-22, and World Small Animal Veterinary Association Conference, Auckland, March 6-9. @rural_news facebook.com/ruralnews


Rural News // March 19, 2013

animal health 47

Extension key to limit resistance pamelat@ruralnews.co.nz

GETTING DRENCH resistance mitigation measures integrated into farm practice is the challenge now, more so than developing mitigation measures themselves, says a worldrenowned expert on the problem. “As a science group we are starting to move away from the problems of anthelmintic resistance and management of sheep,” Agresearch’s Dave Leathwick told the recent International Sheep Vet Congress in Rotorua. “We think we have delivered to industry many of the tools they need and the problem ahead for New Zealand is one of extension and adoption,” he concluded. Leathwick says field trials have shown anthelmintic resistance resulting in a 10-14% loss in lamb carcass value. It also results in lower condition score, less wool, carry over

effects to adults and more dags. However, a pertinent point from some New Zealand trials is that sometimes there are no visible signs in the animals, he warns. “Farmers think they will see a drench resistance problem in the performance on their stock and that is not true – they will see it eventually but it is not visible until it gets really bad,” he told an audience of about 400 vets, about half of whom were international visitors. Leathwick’s aim in his keynote address to the conference was to outline the 20-25 years of “everyone’s work” on anthelmintic resistance in New Zealand. When the first case was detected in 1979 “resistance was regarded as a little interesting but no one really cared”, he says. Severity and prevalence increased to the year 2000 when there was a particu-

Australasian firsts

lar “wake-up call” and 80 farms were screened for drug resistance. “The surprise was the prevalence of resistance to anthelmintic which nobody had expected or seen. It motivated a significant increase in action by industry.” In “the dark old ages”, advice to farmers was contradictory, based on what people thought, with a smattering of commercial self-interest, he says. There was confusion because farmers were being told to do five different things. Today, 20 years’ research provides recommendations to farmers based on good peer-reviewed science. Results from a 2004-5 survey of 80 sheep farms were used by Leathwick in modelling to answer the question: should drenches be used in alternations or combinations? Combinations came out far superior. Unlike anywhere else, these modelling results have been field-tested in

New Zealand in expensive trials: the last threeyear one cost $1.8 million, he notes. Mini-farmlet systems were used and pastures contaminated with mixtures of parasites known to be prone to developing drug resistance. These were then managed to suit the site and evolution of drug resistance measured in real time. What they found was a considerable disparity in resistance development with different treatment practices. For instance the use of a 100-day capsule accelerated resistance development in three different parasites. Leathwick says he’s sure the ISVC audience had all heard about maintaining refugia – “you’ve got to have some susceptible worms on the farm. If you don’t – the alternative is to have nothing but resistant worms,” he commented. But one of the questions farmers ask all the time is ‘how much refugia do I need’, he says.

New Zealand and Australia were the first countries in the world to get two new anthelmintics – Monepantel, as in Zolvix from Novartis, and Derquantel as in Startect from Zoetis. “Both companies brought these out with the mindset of management anthelmintic resistence that has never happened in the past,” notes parasite resistance expert Dave Leathwick (see mainstory). Some authorities elsewhere in the world think the new actives should be stalled and mothballed to save them for the day we need them but Leathwick says the concensus in New Zealand is the opposite. “If we don’t use a new active it is of no value. …it is no use sitting in a cupboard.”

Delegates at the recent International Sheep Vet Congress mingle after Dave Leathwick’s paper.

A key factor in answering that is the efficacy of the anthelmintic. “As the efficacy of the drench goes down your ability to dilute the resistance becomes almost nil. So if you have at treatment which is 99% effective and you leave 1% of animals untreated you get a 10 fold dilution. But if you’ve got a drench that is only 95% effective you have to leave 34% of the flock untreated to get the same dilution. “So, if someone asks how many animals shall I leave untreated the first thing you say is how effective is the drench you are

using? If they can’t tell you then you have to say ‘I don’t know’. “But this brings us on to the concept of using combination drugs. If 90% is treated with an anthelmintic which is 98% effective, the calculated dilution ratio is just under

5%. But if we use two anthelmintics which are 98% effective, the dilution ratio is more than 100% which is a massive difference in terms of diluting the resistance. “This is the argument for using combinations to to page 48

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Rural News // March 19, 2013

48 animal health Massey honours FORMER DEPUTY director general of MAF Biosecurity and trained vet Barry O’Neil is among four recipients of this year’s Massey University Distinguished Alumni awards. O’Neil received a Distinguished Achievement Award from the University in Auckland last week recognising his role “at the forefront of biosecurity and animal welfare for 35 years.” He was elected President of the World Organization for

Animal Health from 2006 to 2009, served as the New Zealand delegate from 1994 until he left MAF. Massey says O’Neil led the ongoing transformation of New Zealand’s biosecurity system, seeing off biodiversity scares including the painted apple moth and the hoax foot and mouth disease on Waiheke Island. Now a biosecurity consultant, he is currently focused on

the kiwifruit PSA incursion. Dairy NZ chairman, former Minister, and multiple board director John Luxton received the University’s supreme honour, the Sir Geoffrey Peren Medal. Massey says Luxton was responsible for a number of significant policy and legislative changes in New Zealand, including policy work that led to the formation of Fonterra and deregulation of producer boards.

Strong case for desexing dogs Constipation is the number one non-traumatic cause of working dogs being seen by a vet and incidence could be drastically reduced by neutering males, says Massey University senior lecturer Dr Kate Hill. “It’s mostly seen in intact males, which is what most of the working dogs are. It’s due to the size of their prostates, and a diet typically with a lot of

bones. Neutering is the answer but if you do need to keep the dog intact, it needs to be on a high fibre diet without too many bones.” Neutering reduces the size of the prostate, which facilitates passage of hard to pass faeces in the lower bowel. A 2008/9 survey of 119 sheep and beef farms with dogs in the Manawatu-Wanganui region

found only 9% of females to be de-sexed, and 3% of males. Hill believes a lot more males should be neutered and while it’s understandable some breeders/trainers don’t want to make a decision until they know how good the dog is going to be, there’s no reason why the job shouldn’t be done once breeding has been ruled out, or enough pups sired.

Combinations shown to slow build up from page 47

slow the development of resistance.” Leathwick says when this science started coming out, commercial companies responded with combination products. “So the drench companies looked at what was coming out of the science and what people Dave Leathwick were looking for and they started producing the products. “We have a raft of combination anthelmintics in this country and you would struggle to go to many retailers in this country and find a single active (drench) on the bench. “That is a direct consequence of science and industry working together to produce the products we need. We’ve got the first triple combination, we’re the first in the world with new actives and there’s wide acceptance across all the industry of using these tools to slow the development of resistance.”

“We’ve got the first triple combination, we’re the first in the world with new actives and there’s wide acceptance across all the industry of using these tools to slow the development of resistance.”

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In 1999 an industry mentor group was set up with farmers, vets, ag consultants and scientists from other organisations to advise, critique and ensure the practicality of what Leathwick and his colleagues were doing. “There is absolutely no point in producing a solution that nobody wants…. because nobody will use it and academics are really bad at this. They sit in ivory towers and produce solutions that farmers don’t really want.” Historically researchers lacked connectedness with farmers and strategies developed through research had never been implemented on commercial farms, he notes. However, about four years ago case studies were set up on 20 farms using best practice science recommendations to combat resistance. It has been a learning curve for everyone, he admits. The results show no worsening of resistance and in some cases improvement. In summing up, Leathwick says New Zealand has a portfolio of evidence-based recommendations to combat drench resistance, supported by significant investment in science. “We have a lot of confidence in those recommendations.” Strong involvement and input by the industry the whole way through the development of those was key, as they have been evaluated in an absolute practical sense on farm, he adds.


Rural News // March 19, 2013

animal health 49

SFF deal to beef-up blood value serum albumin (BSA) which is used in the production of diagnostic/ medical kit manufacturing, biopharmaceuticals, veterinary medicines, vaccines and antibodies, nutraceuticals and life-science research. Keith Cooper, Silver Fern Farms’ Chief Executive, says the agreement fits with the company’s strategy of creating value from co-products and with the company’s sustainability ethos.

Tail-breaking ‘indefensible’

“Proliant is an ideal partner, offering high technology, processing and global marketing expertise. A partnership of this nature, with the potential for additional multi-million dollar revenue to our co-operative over the tenure of the agreement, will ensure that together we make the most of market opportunities and grow value from our products over the medium term.” Initially blood from SFF’s Te Aroha and Finegand works will be used but it’s envisaged eventually all beef processing plants will be fitted with automated blood collection systems and contribute to the product stream. New Zealand currently produces about 1500t/ year of blood plasma of which 99% is exported for manufacture of medical pharmaceuticals and nutritional products. “Annual production of blood plasma is predicted to grow six-fold over the next five years as a result of this agreement,” says Cooper. “We are also now deal-

CONVICTION OF a former west coast herd manager for damaging, in some cases breaking, the tails of over 200 cows in spring 2010 sends a strong message to those who treat animals cruelly, say spokespeople for a range of industry bodies. “Breaking tails is indefensible animal cruelty and the scale of the recent West Coast case is mind boggling,” says Katie Milne, Federated Farmers West Coast provincial president and a dairy farmer herself. “I speak for all farmers when I say that we find this crime despicable.” Milne points out stressed cows yield less milk than content ones. “They also become harder to handle, for pretty obvious reasons.” New Zealand Veterinary Association Dairy Cattle Society president, Neil MacPherson, says banning the offender from owning cows for five years “sends a strong message to those who treat animals cruelly.” DairyNZ’s strategy and investment leader for sustainability, Rick Pridmore, points out its surveys and research show the vast majority of dairy farmers have high animal welfare standards, “going beyond the minimum requirements established in the Animal Welfare Act.” Pridmore’s colleague NitaNo Hardking, moreDairyNZ’s loading individual tags team leader for animal husbandry and welfare, says feed 20-tag the key to managing cows is toEasy work with them, not strips. Next tag against them. auto loads when tagger is fired.

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sector. “People rely on the ready availability of pharmaceuticals, vaccines, nutraceuticals and diagnostic kits for their health, which is why we had to partner with the right people who understood our focus on excellence and reliability of delivery.” Welch says the partnership is the start of a longterm relationship between the two companies. “We chose Silver Fern Farms because of their strength in the beef industry.” A large volume, quality supply combined with a long-term strategy of building brand equity, and a record of capital investment were key factors. “Their new Te Aroha facility is impressive and demonstrates a clear commitment to the beef industry which will ensure our critical raw material long into the future.” New Zealand’s BSEfree status was also key, it seems. “New Zealand is a safe place to source bovine proteins as it has

Talk to your vet today about ELEMEN release of elemental selenium and co overcome thiomolybdate right where molybdenum and sulphur combine a cattle. Iron in the diet just adds to the Treating late autumn/early winter is t during their development and the fer breeding season. ELEMENTAL users come back year aft talk of the benefits is spreading quick EC0055196©

A MEAT processing byproduct traditionally sold as a fertiliser for gardeners, if not simply disposed of as waste, promises to become a $6-8m/year revenue stream for Silver Fern Farms. The farmer-owned cooperative this month announced a long-term partnership with US-based biotechnology company Proliant to produce bovine blood plasma products. Proliant is the world’s leading producer of bovine

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Rural News // March 19, 2013

50 animal health

Success sees TB controls eased THOUSANDS OF cattle and deer herds have had TB movement controls or testing requirements removed or scaled down thanks to the success of the TB-free New Zealand programme, says the Animal Health Board. As of March 1, more than 3750 cattle and deer herds had requirements

eased, a move made possible due to the success of focussing on TB-infected wild animal control, strict movement rules on infected herds, and extensive cattle and deer testing, says AHB’s national TB manager, Kevin Crews. “The AHB is proud to again deliver some direct benefits to regis-

tered cattle and deer herds across the country. This is a reward for the dedication farmers have shown in supporting the TBfree New Zealand programme. We greatly appreciate their help and co-operation, without which this reduction would not have been possible.” AHB is responsible

for implementing the TBfree New Zealand programme which is working to eradicate bovine TB in New Zealand. Changes to movement restrictions will affect about 50 herds across Tasman, Marlborough and North Canterbury. Around 3700 herds in the Hawke’s Bay,

Manawatu, Wanganui and Canterbury regions will also have testing frequencies reduced to either every one, two or three years. The changes affect an area of just under 1.3mha; about half the size of Waikato. Golden Bay herdowner, John Harwood, has had his movement control restric-

I’M STICKING WITH WHAT GIVES ME THE MOST SECURITY

Cattle and deer herds have had TB movement controls or testing requirements removed or scaled down thanks to the success of the TB-free New Zealand programme.

tions removed and says he’s pleased to get on with the job of farming with fewer hassles when shifting stock. “No longer needing to pre-movement test our animals before we shift or sell them is a huge relief. For many farmers, pre-

movement TB testing is not only a hassle, but another on-farm cost.” Herdowners can visit www.tbfree.org.nz/ dcamap to check if they have been affected by the changes but will be notified when their next test is due.

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Tags should cost less now levy cut

To get better lamb numbers, focus on the factors you can easily control – the diseases that can cause major losses like toxoplasma, campylobacter, and salmonella. Vaccination helps you to both protect your ewes and increase the number of lambs born. A sheep performance vaccine plan for your farm will ensure you get the most benefit and most peace of mind. Talk to your vet now about a sheep performance vaccination plan for your farm. For more information visit www.sheepvax.co.nz AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ® Registered trademark. MSD Animal Health Phone: 0800 800 543. SPV-413-2012.

SECURE LAMB NUMBERS. SECURE YOUR GAINS.

A REDUCTION in the NAIT tag levy should be passed onto farmers in cheaper tag prices, says the organisation, following a cut in cattle tag levy from $1.10 to 90c/tag, effective from March 8. “We would expect the price of tags purchased after 8 March 2013 to reflect this reduction in NAIT levies, which is good news for farmers,” says NAIT Chief Executive Russell Burnard. NAIT slaughter levy for cattle is also down, from $1.35/carcase to $1 ex GST. The reducNAIT’s tag levy is down tions are a result from $1.10 to 90c per tag. of faster than expected uptake of the scheme on farm and consequent levy income, and follow a brief consultation process on the proposed reductions. “As a non-profit company owned by farmers NAIT Ltd is obligated to only recover what it needs to operate the NAIT scheme. Due to farmers complying with NAIT early, NAIT Ltd has received revenue sooner than anticipated,” says Burnard. Deer levies, for which NAIT became mandatory March 1, are unaffected by the reductions. The Impractical to Tag (ITT) levy, designed to allow animals which it would be dangerous to tag to be sent straight to slaughter without tagging, remains at $13. “Our original model predicted the ITT levy would increase this year but our data reflects that it is set at about the right level at this point in time.”


Rural News // March 19, 2013

animal health 51

SECURE YOUR LAMB NUMBERS. SECURE YOUR GAINS.

ELE-00546-RNb

How to plan for a successful season.

Dry-off may not be best option DON’T RUSH to dry off cows without first doing your sums. “There are a number of profitable options to keep cows milking through this dry period,” says Seales Winslow technical manager, James Hague. Drying cows off early has a number of drawbacks: a dry cow creates no income and still needs to be fed 8-10kgDM/day, about 2% of its bodyweight, he points out. “This is only 4-5kg less than many milking cows eat at this part of the season.” A cow dried off now which does not calve until August will be dry for 20 weeks and if sent away to graze will be costing $20-30 per week – at least $400 in total. At $5.50/kgMS that’s equivalent to 73kgMS. Similarly, feed for a dry cow kept at home will cost $1.50 - $2.50/day, or $10.50 - $17.50/week. That compares to a diet for a milking cow giving 1.5kgMS/day costing $3 - $5 per cow per day. Given the milk’s

worth $8.25/day, even a diet costing $5/day leaves a margin of $3.25/day. “Calculate the cost of feeding a dry cow and the cost of feeding a milking cow, as the cost difference between the two can be very little,” he points out. Many commentators get bogged down in the cost of each feed but Hague says it’s more practical to look at the cost of the whole diet and stay focussed on the margin. “Even buying in the feed at 70c/ KgDM is economic.” However, diets must be balanced and unbalanced diets are costing producers’ money, he warns. “Check for undigested fibre in the dung, as this indicates that the digestive system is not functioning as well as it could and feed value is being lost.” Low protein in the diet, due to low protein grass, is a current problem as nitrogen hasn’t been applied for months on many farms, he adds.

SALMONELLA CAN STRIKE WITHOUT WARNING, SO ARE YOU READY? Salmonella is widespread, in fact it is always present. It’s just waiting for the right conditions to cause disease. So having a preventative plan ahead of any anticipated risk period is a ‘must-do’.

“In these situations higher protein feeds need to be used to supply the rumen with the protein it needs to efficiently digest feed. This is especially important where less digestible feeds such as hay or straw are being fed. “Feeds such as palm kernel are great for filling a dry matter gap, but higher protein feeds such as cottonseed or canola are much more suitable. With PKE at current high prices, these other feeds on a nutrient cost basis represent real value for money. The value of a feed is not in its cost; it is in the value it brings to the diet and the amount of milk or meat that is produced as a result. “Look at all types of feed and evaluate which ones do the job.” SealesWinslow is offering ration reviews to help farms balance diets through this dry spell: tel 0800 007766.

When Salmonella does strike, it usually hits without warning. The number of animals that become infected, ill or die depends on all the risk factors present on your farm. Losses can quickly reach 10%. Besides deaths, outbreaks mean management changes, veterinary and labour costs, the risk of further outbreaks and of disease in humans. There are two main types of Salmonellosis: Enteric (Gut) Salmonellosis occurs nationwide, and is most common in summer to winter. Brandenburg (Abortion) Salmonellosis occurs mainly in the central and lower South Island, and is seen mid to late pregnancy. The aim of vaccination is to help prevent infection, reduce the impact of disease outbreak and minimise production losses. Ask your vet for more information. Visit www.sheepvax.co.nz

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PLAN FOR SUCCESS:

Britain’s TB toll rising cattle control measures, a strong push from the Government on cattle and badger vaccination, and support for measures to tackle the disease in badgers through piloting a targeted, humane cull.” The National Farmers Union of England and Wales (NFU) notes the toll in England is the highest for over a decade. “In 1998 we had 6,000 cattle with TB in the whole of Great Britain…this figure has jumped to 38,010 - 28,284 in England alone,” says NFU president Peter Kendall. “And it is not just in endemic areas: TB is creeping into new areas like the North and East Midlands, Cheshire and the South East. This has to stop. Kendall says cattle controls alone “are not enough” and

controls targeting the disease in the protected native species, the badger, “play a fundamental part in ridding our countryside of TB once and for all.” The Defra figures show 5.5% increase in TB incidents in previously unaffected or “new” herds, at 5,171 compared to 2011’s 4,901. However, in an attempt to get a better handle on the disease, tests on officially TB free herds increased 17.8% to 73,627, compared to 62,481 in 2011. The BVA notes that increased the proportion of lower risk herds tested, making incidence rate appear to dropping from 4.9% in 2011 to 4.5% in 2012. Defra and Britain’s National Statistics office have warned incidence rates are subject to further revisions.

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WHILE NEW Zealand appears to be winning the war with bovine TB (see opposite) Britain’s battle with the disease continues to deepen. Statistics last week released by the Government’s Department of Food and Rural Affairs, aka Defra, show a 10% increase in last year’s toll of cattle culled due testing positive for the disease, or having been in direct contact with positive testing animal(s), so-called reactors. The British Veterinary Association points out the 37,753 tally does not include cattle slaughtered as inconclusive reactors. “The figures remind us that urgent action is required to help us get on top of this disease,” says BVA past president Carl Padgett. “We need to ensure compliance amongst farmers with the tougher

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Rural News // March 19, 2013

Pour On

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NEW ZEALAND has a potential problem: we don’t know where all our pigs are, where they’re going, or where they’ve been. The problem isn’t so much with the commercial industry – New Zealand Pork keeps a register of producers – as with the non-commercial, a MAF-funded survey by Massey University, published in this month’s New Zealand Veterinary Journal, reveals. Its authors warn early detection and management of an exotic disease incursion in New Zealand’s pig herd “may be challenging” owing to the “substantial geographical overlap” between these groups of producers, and the lack of mandatory identification and tracking. “If an exotic disease comes in it is very likely pigs will be involved either as the primary or a secondary source of infection,” lead author Eric Neumann told Rural News. “They’re susceptible to a number of exotic diseases, not just foot and mouth.” Pigs’ susceptibility to such diseases can be a good thing, in that they act as a sentinel species, alerting authorities and industries to the presence of a pathogen before it spreads to another sector such as sheep, beef or dairy. However, that sentinel role is unlikely if people keeping them are unaware of disease symptoms and rarely, if ever, use veterinary services. As such, “backyard” pigs also present a significant risk, explains Neumann. “The other worrying part is the extent to which waste [human] food is used as a feed. That’s a [biosecurity] risk if it contains imported material.” Regulations state meat waste must be heated to 100 deg C for an hour before it may be fed to livestock, but Neumann doesn’t believe that happens with scraps fed to backyard animals.

Feral issue downplayed? The NZVJ paper doesn’t discuss the role feral pigs might play in disease transmission but Neumann says the pig industry and MPI position generally is that there are other more important threats to biosecurity of the commercial pig industry. However, he says the assumption a disease in the feral population is unlikely to get into the commercial industry is largely based on the fact Aujeszky’s disease in the commercial herd 15-25 years ago didn’t go the other way, and get into the feral population. “The risk is different now than from the Aujeszky’s era given the increasing number of pigs being raised in free-range production environments and outdoor sow herds. South Island pig farmers repeatedly report seeing ferals on their property and at least occasionally ‘inside the fence’,” notes Neumann. He also says there’s “a dark underbelly” to pig hunting, trapping ferals to relocate them in better hunting terrain or areas that, in the hunter’s view, need more pigs. Not only could such relocation spread disease, it typically involves feeding or baiting which produces “concentration points” of wild pigs, at which disease transmission events are more likely to occur. As for the extent of contact between non-commercial pigs and ferals, it’s unlikely in peri-urban settings but certainly occurs on some lifestyle blocks, he says.

“People are unaware of that requirement.” Even cooked meat is unlikely to comply with the regulations because typically it doesn’t get hot enough. If it did, it would “turn to shoe-leather” and be inedible, he points out. Consequently imported meat carrying an exotic disease could lead to infection in a live animal, he believes. While the paper points out backyard pigs typically do not come into contact with the commercial herd, even the small likelihood of such an event and the numbers involved means over time it is “almost certain to happen,” he says. Just how many properties keep pigs in New Zealand remains a big unknown. The NZVJ paper notes recent estimates of holdings with non-commercial pigs range from 2,200 to over 6000. “An accurate count of properties in New Zealand holding pigs remains an elusive yet important piece of infor-

mation for disease outbreak planning activities,” states the paper’s discussion. It also stresses the importance of engaging New Zealand’s substantial non-commercial industry in any premises identification or traceability scheme for the sector. Even mandatory schemes may not gain sufficient compliance in non-commercial herds to add value beyond their cost so education on biosecurity and exotic disease presentation, public awareness campaigns, veterinary involvement and robust systems to ensure border security “will remain critical in keeping the New Zealand pig industry at its current level of disease freedom,” it concludes. The NZVJ paper is particularly timely as a judgement on NZ Pork’s appeal of the High Court’s May 2012 ruling in favour of MAF over the risk raw pork imports pose with regards to PRRS, is expected this month.


Rural News // March 19, 2013

machinery & products 53

Front-rear mower combo fast and easy GARE T H G I LLAT T

A POTTINGER front-and-rear mower combination has halved mower tractor time for a Northland dairy farmer. Ruawai, Northland, dairy farmers Garth and Lyall Preston farm 800 cows on their 380ha property. Using capital and labour units effectively is a big priority, including the tractor. Preston has had a front PTO installed on successive tractors used in pasture management and supplement harvesting. “On a farm like this you’d probably need two tractors and two rear mowers to handle the same area if you didn’t have the front mounted mowers. I can mow 4ha in 25 minutes.” Halving the tractor running time maintains its resale value, and saves time and running costs says Preston. “When I resell a tractor I’ve owned for 10 years it’s only done 4000 hours; if it hadn’t had the front mower then it would have done 7000 hours.” While several front-and-rear mower combinations have been used on the farm, Preston has run Pottinger mowers front and rear for five years – on both

Northland farmer Lyall Preston with front and rear mounted Pottinger mowers; which he says halves the tractor hours spent mowing.

the Ruawai property and South Island farms – and says he hasn’t regretted it. “The mowers have done especially well down there. We’ve done a phenomenal amount of work with them in the three

years we have had them and we haven’t had to touch a bar on them.” On the Ruawai property Preston’s current 7.34m mowing set-up is made up of a 3.04m Novacat 301 Alpha

Motion in the front and 4.3m Novacat 442 offset mower on the rear of a 140hp John Deer 6140R. While Preston says he has tried out several front-mounted disc mowers,

the Pottinger model has been the one he settled on due to the way it is mounted and the amount of room it gives the operator to move. “If the paddock dips it won’t scalp the ground. From what I’ve seen it is the best front mower you can buy because of how it follows the contour.” The 4.3m rear mower also follows contours well and Preston attributes this to the mower’s centre mounting. The mower is suspended from the middle of the mowing bar instead of near the 3PL connection. The maker saying this makes for a more even cut which isn’t affected as much by uneven or undulating ground. Manufacturers say this and the mower’s innovative hydraulic suspension mean the Novacat 442 acts lighter than other mowers giving a ‘floating cut’. Preston agrees, saying while the 4.3m mower has given him an extra 0.8m cutting distance on the previous Pottinger rear mower. It has only added an extra 150kg of weight. Tel. 07 823 7582 www.originagroup.co.nz

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Rural News // March 19, 2013

54 machinery & products

Top digger man loves ‘changing the face of the earth’ JAMES LUX, Papamoa Beach, has won the title of New Zealand’s top excavator operator, against 11 other contenders. The final took place at Central Districts Field Days, Feilding. The contest organiser, the New Zealand Contractors’ Federation, says Lux, who works for Fulton Hogan, took home a Hitachi excavator trophy and

other prizes. The 2011 national champion, Matthew Hareb

pion Steve Galbraith from Napier was third. Lux, in the final a

Deadly serious contest aspects include two days of rigorous construction, planning and loading challenges. from Waitara, the current Taranaki regional champion, won second place and Hawkes Bay cham-

second time, also won the Humes Good Bastard award – voted for by contestants – for the finalist

seen as the most considerate and helpful. And former national champion Brian Hoffmann, Auckland, won the One Day Job category. Federation executive office Malcolm Abernethy said Lux was a worthy winner. “James had a great day on Friday, blitzing the field by 20% for that day. Steve Galbraith did the same sort of thing

NZ’s newly-crowned top excavator operator James Lux.

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on Saturday, but James remained consistently in the top four for each activity.” Lux says he loves every minute of operating excavators and enjoys taking part in the famously gruelling contest. “How can you not love this industry. You are outside driving big toys and changing the face of the earth.” Contestants must do delicate tasks using the

buckets of 12-tonne Hitachi machines. For example, popping a champagne cork, flipping sausages on a barbecue, slam-dunking a basketball and pouring a cup to tea. Deadly serious contest aspects include two days of rigorous construction, planning and loading challenges designed to test their operator skills and industry knowledge to the limit.

Ploughing champs set for Lincoln TON Y HO P K I N SON

PLOUGHING ENTHUSIASTS at Lincoln are about ready for the 2013 finals of the New Zealand Ploughing Association annual championship. Paul Murphy and his committee of 14, from the Lincoln Ploughing Association, have been working for two years preparing for the event, near Lincoln University on April 6 and 7. A series of qualifying events have been held around the country during the last 12 months. The winners in each section will plough at these finals. Winners in the open and reversible ploughing sections will contest the World Ploughing champs in France in 2014.

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The event coincides with the Lincoln Town and Country Fair with many different family activities, as well as the ploughing. At present there are 12 entrants in the Case IH Silver Plough Open division, six in the CRT Fuel reversible division, seven in the Mainland Minerals vintage division and six in the Rural News horse ploughing division. “The ground as you would expect is dry. The barley was removed from the stubble ground in early February and I expect this to plough well,” says Murphy. “With the grass ground we will start irrigating within the next two weeks which will make it ideal.” The event coincides with the Lincoln Town and Country Fair with many different family activities, as well as the ploughing. These include vintage tractors and machinery, arts and crafts and entertainment for children. “Any profit the Lincoln Ploughing Association makes from the event will be donated to the Christchurch St John Ambulance.”


Rural News // March 19, 2013

machinery & products 55 I-spy you! b e rn a r d l i l bu r n

FARM SECURITY cameras from Andytek Enterprises Ltd, Cambridge, help catch unwanted visitors. I-Spy Security Cameras, said to be competitively priced, are actuated by motion sensors which are adjustable and, depending on the model of camera, have a range of 5-15m. They are effective day and night. At night, they use an infra-red flash which can’t be seen, especially by the intruder. The units are weatherproof and can be mounted on any hard surface. Three of the cameras use four AA-size batteries for power, lasting up to eight months on standby. Another of the units can be hardwired for electric power. All the cameras use an SD card similar to that in most conventional cameras and cellphones. A 4GB card will take 4000-6000 photos for viewing on a computer. The camera, once started, sits in standby mode until ‘woken up’ by movement, which it does in 0.9 of a second. On show at the Central Districts field days and ranging in price from $129-395, these may provide cost-effective farm security. Distributor Per Anderson had a photo montage in his tent showing thieves arriving at a property, entering the residence, removing goods and leaving, all within 3 minutes. With the camera showing the car, the licence plate and the people, the police were able to apprehend those involved and recover the property the same day. The company also sells I Spy Alarms, which can be placed on the driveway or entrances to buildings. Tel. 07 827 2965 www.andytek.com

LATEST STORIES EVERY DAY Get upto date news at www.ruralnews.co.nz

Re-worked tractor aims to be affordable and competitive A REWORKING by New Holland of its TD5 tractor range will provide dairy and livestock farmers with a reliable tractor at a competitive price, says New Zealand distributor CB Norwood. “New Holland has reinvented and extended the TD5 range, the extended series now containing four models with distinctive NH styling: the TD5.75, TD5.90, the two new range-topping TD5.100 and TD5.110 models that develop between 75 and 110hp.” Pierre Lahutte, head of tractor product management comments, “The TD5 range [will] satisfy the demands of this segment with specific requirements. Elements such as mechanical transmission and easy maintenance have been coupled with a new cab and a column-mounted hydraulic power shuttle… to offer a modern take on a traditional favourite.” The all-new cab ensures comfort and intuitive control of all key tractor functions. There

are lots of ergonomic improvements: all principal controls, including the hand throttle and hydraulic remote valve control levers, have been relocated to the right hand console to minimise twisting and turning by the operator. The integrated loader joystick (optional) and the column mounted shuttle lever increase loader productivity and reduce operator fatigue. A dedicated pedal for steering column adjustment enables users to position the steering wheel whilst in their natural operating position. An optional high visibility panel takes the overall glazed area to 5m2, ideal for loader work. A super-fast defrosting vent directs air down onto the front windscreen for

frosty mornings and evenings. The VisionView cab has a larger, more comfortable seat and a newly introduced passenger seat. Lighting is from protected rear work lamps and six work lamps within

the rear roof section –no damage from overhanging foliage or in low sheds. Distinctive New Holland styling includes sloping bonnet and cat eye lights; the ergonomic layout further extends the tractor family feeling.

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Rural News // March 19, 2013

56 machinery & products

Tractor takes out top award NEW HOLLAND has won the Tractor of the Year 2013 award in the Best of Specialised category with the T4060F. Local distributor CB

Norwood says the T4060F (106hp) is the top model in the T4000F/N/V series, a narrow design for vineyards and orchards. The T4060F, together

with the entire T4000F/ N/V range, is aimed at best efficiency. Various features enable growers to tailor their tractor to needs: a range of

transmissions can be selected, and all ‘F’ models have the maker’s SuperSteer front axle (turning radius 76°). A 100% mechanical parking lock makes for safety and a new PTO ratio gives efficiency and a 5% fuel saving. Hydraulic mid-mounts are controlled by an ergonomic joystick; the system has a hydraulic motor function with 100% priority and a free return. The new electro-

hydraulic mid-mount valves are controlled via a joystick which manages eight outputs. The Blue Cab is redesigned, and all key tractor functions are grouped together “for intuitive and immediate operation”. www.newholland.co.nz

Central Otago’s top ‘Claas’ dealer DAIRYING AND irrigated cropping will be served by a newly opened Claas Harvest Centre at Wanaka, selling and servicing German-made Claas machinery and tractors. The Ballantyne Road business is a branch of Claas Harvest Centre Otago. Dealer principal Steve Scoles says they have serviced the Wanaka region from Mosgiel for 20 years. “We’ve had a service technician based at Wanaka for three years and we opened a workshop in December.

“We became the first Landpower franchise in New Zealand in 1995 and then we built our workshop and showroom three years later.”

MS1412

Now we have three mechanics, a parts specialist and a sales representative. We see enormous potential up here. There’s a lot of pivot irrigation going on, one large dairy farm and more coming on.” Scoles says Claas, Amazone and Landpower are familyowned businesses and so is his. “My sons, Daniel and Sam, both work in the business in service and sales. My father, Colin, also drives the truck occasionally, so I guess we qualify as a family business.” Scoles worked as a farm machinery service technician for almost 15 years before starting his own business in 1993. “I started servicing tractors from the back of my ute,” he says. “Within a couple of months, I had two other mechanics working with me from a small workshop in Momona. Pretty soon we were selling second-hand machinery and by the end of the first year, we had chalked up our first major sale, a Claas Quadrant baler. “We became the first Landpower franchise in New Zealand in 1995 and then we built our workshop and showroom three years later.” Rebadged as a CLAAS Harvest Centre in 2010, the business now employs 22 staff, including three sales representatives, 12 service technicians and three parts specialists. CLAAS will release 11 new tractor models in 2013, including the Axion 900 series (320-410hp) and Arion 600/500 (140-184hp).


Rural News // March 19, 2013

machinery & products 57

Northland field days run hot FINE weather and a jam-packed schedule pulled record crowds to the 2013 Northland Field Days this year, say organisers. With temperatures averaging a blistering 25oC, and little cloud cover during the three days, it was very different from last year when a ‘weather bomb’ caused an early close on the Saturday afternoon. Visitors streamed in from 9am to 4pm every day. Over 25,000 people attended the event in total – 1000 more than the last record attendance in 2012. Many of Saturdays’ 11,000 visitors tried to beat the heat with More FM’s Megasplash. There was plenty more to see and do – helicopter rides, the tractor pull, lawnmower races, dog trials, logger sports and quad skills. Lew Duggan The tractor pull celebrated its 21st birthday in style with entrants coming from near and far, according to event organiser John Phillips. “One driver came up from Hamilton to take part in the event and there were a lot of locals interested.” The ANZ and More FM won the bank and business house competitions on Thursday. Shane Phillips won the main competition on the Thursdsay and Mark Phillips won the hotly-contended 21st birthday champion’s 3-legged race on the Saturday. Karl Bow was named the logger of the day in the Northland Loggersports event

after getting placings in the stock saw and woodsplit events. The Montana team won the team event, relegating last year’s winners Paniora Logging to second and third place. Alan Van Hartigen won the open quad skills competition with Megan Browning taking the ladies’ competiton. Prizes and giveaways at the event included a motorbike at the Vodafone stand, 200L drum of teat treatment from Donaghys and a 600kg bag of fertiliser from Viafos. Northland Field Days organisers and exhibitors also gave away thousands each day as gate prizes. Joe Danher from Tamaterau won the Thursday gate prize of $4800, Chris Longville from Warkworth $2800 on Thursday and Sarah Bird from Dargaville $1600. While organisers, exhibitors and tractor pull contestants were celebrating the event’s 21st birthday on Saturday night, Northland Field Days president Lew Duggan says plans will begin immediately for the 2014 event, from Thursday February 30 – Saturday March 1 to work in with regional field days in Gore and Fielding. “The 2014 field days will be bigger and better than this year’s event,” says Duggan. “The committee is working on some exciting changes.”

Tractors suits smaller farms gare th gi l l att

MEDIUM- AND small-scale farmers won’t need to shell out for a 100hp+ tractor thanks to the launch 75-95hp Massey Ferguson 4600 series, says AGCO NZ area sales manager Greg Keegan. The tractors, unveiled in Australia early February, reflect a major investment in Massey Ferguson’s utility range of tractors, says Keegan. Previously drivers of smaller capacity tractors missed out on developments such as AGCO’s highly efficient Sisu engine, shuttle transmission and tilt steering which were only available in models above 100hp. According to Keegan, the 3.3L 4600 series offers more advanced features with better manoeuvrability and affordability than the utility tractor ranges. “More engineering goes into the back of the higher power tractors so the chassis can handle 140+hp. However, some of those medium

power tractors won’t do any work over 100hp, so a lot of capacity goes spare.” Keegan says with an output of 75-95hp, farmers will be able to tow a 3m mower or a rotary mulcher. “The 4600 series are quality machines, they’re well-built and well-engineered.” Keegan is especially keen on the ROPS version of the tractors,

which he says is in hot demand on farms in the north. “It’s a very good ROPS offering with flat platform and nicely laid out controls.” Keegan says the tractors will be on display at the Northland Field Days, Central District Field Days, and Lincoln Field Days, as well as being available from all Massey Ferguson dealers. www.masseyferguson.co.nz

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Rural News // March 19, 2013

58 machinery & products

Wheat and wheels event gathers pace MID CANTERBURY Vintage Machinery Club’s 30th anniversary event, Wheat & Wheels, next month, is shaping up large.

Co-organiser John Hall anticipates at least 300 tractors, plus classic trucks, traction engines, cars and a dozen vintage

Big tractor fans: Wheat and Wheels organisers John Hall, Bruce Taylor, Peter Butterick, and John Stewart with a few of the pivot tractor line-up expected.

headers. Host farmer Peter Butterick will dust off his 1931 comb-fronted Sunshine for its first run in 50-odd years. “It was the first header in Ashburton County with a motor,” says Butterick, whose grandfather bought the Australian-made machine. Butterick has had the engine apart and reassembled it, the radiator’s been off and soaked to lift dust and dirt out of clogged fins, and the fuel tank’s been checked for leaks. “And we’ve had the magneto checked so when we get it all back together it should be good to go.” A magneto used to provide the spark for engines before machines such as the Sunshine had batteries. “A lot of McCormick tractors had them until the 1950s. So did aeroplanes

[and motorbikes and outboard motors. Ed].” The Sunshine’s motor, a Morris Commercial petrol, only powers the cutter and threshing works. Horses provided the pulling power when it was new but for Wheat and Wheels it will be hitched to a tractor. “We wouldn’t be able to make the horses go slow enough,” notes Hall. The headers, including Hall’s own Massey 788, will work on 5ha of Sage wheat Butterick’s grown especially for the occasion. “We sowed it on November 1 to try to have it about right to harvest in mid April.” Last week it was a touch green but with the dry weather he’s confident it will be ready in good time. “Then we just need a fine weekend.” Fungicides have kept

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the crop clean, but nitrogen use has been kept modest to avoid making it too heavy for the old machines. A couple of reaper binders are expected to do a pass or two over the weekend. “I’ve told them they’re welcome as long as I don’t have to do the work of picking up the sheaves behind them!” Butterick’s Sunshine will contrast with a new Case IH 9230 (35-foot belt feed front) he used to reel in his harvest this summer and which will be on display at the event. “It’s the first brand new combine we’ve had in 80 years. The Sunshine was the last!” The vintage club’s president, John Stewart, says such contrasts are part of the aim. “What we’re trying to do is show the public how the power has changed over the years. Not too long ago 100hp was considered a big tractor. Now there are several 600hp machines in the district.” Some of those will be lined up in what organisers hope will be the largest display of pivot tractors ever assembled in one paddock in New Zealand. “We’ve identified 26 in Ashburton District and we reckon we’ll get 20 to 25 of

them.” Parades of different classes of machine will be run throughout each day,

starting from 10.30am. Wheat and Wheels is on Christys Road, Wakanui, April 13-14.

“She’ll be going on the day,” promises Wheat and Wheels host Peter Butterick, seen here with his 1931 Sunshine header before it was pulled out for pre-event tune-up.

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Rural News // March 19, 2013

machinery & products 59

Farm utilities built to take the rough BERNAR D L IL BURN

A NEW supplier in the side-by-side farm utility market, Avatar, offers two models: an 800cc an 1100cc, both with EFI petrol engines, CVT auto transmissions and, most importantly for hill country farmers, engine braking. Built in China, these are designed and built for our arduous conditions. The fit and finish seen was much better than on previous machines from China. Their stylists are still copying some popular machines from America and Japan, but they are better at it. We saw machines looking like a cross between a Can Am Commander and a Honda Big Red, in 2WD, 4WD and diff lock systems. With a solid looking chassis and suspension in

an attractive durable plastic body, the machines look the part. Suspension components, double A-arm setups front and rear, are solid and designed for work rather than a soft riding sports. Brakes are 4-wheel discs with a cleaning disc to help brake longevity. On display were components used in the Avatars, solid and substantial. The display machines (2-seaters) had ROPs cabs with 3-point seatbelts. The base machines cost $14,995+GST for the V-twin 800cc model and $16,500+GST for the 1100cc. The larger machine has a 4-cylinder engine from the Daihatsu Cherry car made in China. A roof and windscreen are options for $1500 extra, and power steer is a

Metalform expands Aussie business GARE T H G I LLAT T

FARM IMPLEMENT maker Metalform is expanding its Australian operation to ensure its equipment gets the notice it deserves, says sales manager Tim Henman. Since 2006 it has sold lifestyle farm products there – its Tow and Collect and Tow and Mow. Now the company intends to go hands-on in Australia with its well-regarded Tow and Fert suspended-material fertiliser spreader, Henman says. “The product has some new technologies in it and we didn’t want it to get ‘lost’ on an agricultural dealer’s yard. And it puts us close to the inquiries and sales which helps immensely in a new product launch to tweak the product to suit the customer.” The company last month organised warehouse space in Melbourne for its distribution centre. Henman says Australia is a similar market to New Zealand with customers having many of the same requirements. “The Australians also look to the New Zealand dairy industry for ideas that have sustainable solutions and obvious payback solutions.” Melbourne was chosen because Victoria has most of Australia’s dairy farms. “We have just exhibited at our first trade show in Warrnambool and have another planned in Warragul this month. Both of these places are in Victoria as 60% of Australia’s dairy industry falls within this state.” Stock will be made in New Zealand then shipped. Henman says while sales and distribution of smaller implements will remain with local dealers, the Tow and Fert will stay in-house. Tel. 0508 747 040 www.towandfert.co.nz

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Rural News // March 19, 2013

60 machinery & products

New precision planter launched

Tulloch’s Nick Gillot, pictued with the machine at the recent Northland Field Days.

GARE TH G I L L AT T

OPERATORS will be able to plant seeds in drier con-

S E N I H C A M T U O D FEE S R E D A E R P S D E L I TRA RIOR E P U S Y L P M SI

SUPER COMBY EX • Feeds pit silage • Round bales • Square bales • Electric Joy-Stick • Extension Bin • • • •

Flotation tyres 400/60x15.5 Optional tilting elevator Self loading forks Extra capacity

• Level capacity 13cu/m • Loaded capacity 14.5 - 15cu/m • Extended capacity 15 - 17cu/m

Transpread • Uniquely shaped hydraulic twin spinner discs provide controlled accurate spread • Digital tachometer accurately reads spinner speed from tractor • Chain feed provides reliable constant feed to spinners • Stainless steel Hoppers, single and

ditions with more confidence and travel between jobs easier with a new precision planter being imported by Tulloch Farm Machines. The company launched its 6M wingfold Monosem NX 2 pull-style planter at the Northland Field Days. Tulloch North Island regional sales manager Nick Gillot says the pull-

is a 295mm cast iron unit that pushes the seed into the soil below the trench created by the double disc openers and shoe for the maximum level of contact, leaving only the closing of the furrow to press wheels. Gillot says this is hugely beneficial when planting in drier conditions as it means

“If the seed is not in good contact with the soil then the paddock won’t germinate evenly. With the Monosem Pro wheel system all the rear press wheels are doing is closing up the furrow.” style design allows towing by lower-powered tractors than three-point-linkage planters. Monosem, a French maker of planter and interrow cultivators, has introduced several innovative features with the seeder, Gillot says. These innovations assist with transportability, control and strike rate. While stretching out to just over 6m in full work position, the seeder folds to 3m for easy transport. And it achieves better results over a wide variety of ground conditions thanks to its Pro wheel. Positioned between the seed chute and rear press wheels, the Pro wheel (an intermediate press wheel)

operators are able to get the best seed-to-soil contact without having to slow down as much as in situations where they rely on rear press wheels for consolidation. “If the seed is not in good contact with the soil then the paddock won’t germinate evenly. With the Monosem Pro wheel system all the rear press wheels are doing is closing up the furrow.” For the most precise seed singulation Monosem has a tried and tested patented system that allows the vacuum to be altered independently on each planter unit while adjusting the seed singulator. Tel. 0800 88 55 624 www.tulloch.co.nz

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from page 55

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loader-intensive dairy and livestock farmers when stacking bales or feeding cattle. All models can be equipped with the 20x12 transmission option and can be specified exclusively with the mechanical column mounted shuttle. Braking performance has been upgraded by 15% by an additional brake disc. The entire TD5 range is available in both cabbed and ROPS variants. The ROPS platform shares the same ergonomic control layout as the cabbed version. ROPS variants can be fitted with a FOPS (fall-on protection system) compliant canopy. Tel. 06 356 4920 www.newholland.co.nz


Rural News // March 19, 2013

machinery & products 61

Contracting business that grew and grew Clicking with new technology

Peter Molloy – 43 years in the contracting business and still going strong.

MOLLOY CONTRACTING’S latest purchase – from Piako Motors, Rotorua – has now completed its first season – a Pottinger 7210 Combiline loader wagon (72m3).“ After the first season it has done all I want,” said Peter Molloy. He has fitted 800mm wide flotation tyres because a lot of the areas he harvests are on soft ground. Standard features include a swing-out chop-

ping unit that can be lowered hydraulically from the tractor or with a control on the side of the wagon. Individual knives can be removed without the need for any tools and the arms are secured in a protected area. The autocut sharpens the blades directly on the trailer. The sharpening cycle can be programmed which reduces maintenance and guarantees long lasting cutting quality.

A special feature is the auto steering tandem axles which improve access to paddocks from farm lanes/ raceways. Molloy had weigh scales fitted as an optional extra. “With the high deck we can turn and the deck is high enough to clear standard end/gate strainers, but we have to give a little more thought with deer fencing.” Tel Peter Molloy 0274 724 197

MS1406

PETER MOLLOY started contracting 43 years ago when he was 18 with a conventional baler doing 45000 bales in his first season. “I was working on the family farm and contacted some neighbours to do their mowing, raking and baling and I was able to pay for the baler in that first season.” His only tractor was a David Brown 990. He was also supplementing his income with fencing, an AB run and bush work. Peter and wife Jenny are based at Reporoa where he has two dairy farms. The home property has been in the family 60 years and is managed by their son ‘PJ’. In spite of the dry spell at February 20 they were 13000kgMS ahead of the same time last season. “They are going well with some silage, PKE and plenty of scenery and the stock are in good order.” He started making silage with a Gallagher forage harvester and a Buckton trailer with a large cage, carrying to stacks and pits. He had one of the first round balers in the early 1980s and the conventional baler was “history.” Then when Gallagher stopped making Silorators they bought their first loader wagon, a Taarup, in the early 1990s. It was with this machine that Molloy coined the phrase ‘hectare hogger’. “Compared with the Gallagher these machines travelling up to 11km just hogged the grass.” He has had several different brands and his latest is ‘hectare hogger’ MK VIII (See sidebar). He worked about 20km from his home base and it is a family business. As it expanded he used Lincoln College students for the busy part of the season. Reporoa at this time was an area of small farms where all farmers made their own supplements and there was no brought in feed. Molloy Contracting expanded into cultivation, developing land for crops and new pasture, and spreading fertiliser and lime. Contracting reflects the changes in sizes of tractors and machinery and as the machinery grew bigger tractors were needed. “Back in the 1990s a big tractor was 120hp.” Farming in the area was also changing with farms amalgamating and farmers leaving the complete job to contractors. He now works up to 40km from his home base with himself, one permanent and two casual staff. “I now need bigger tractors, mowers and rakes and we changed to wrapped bales about 2007.” He has a Krone round baler, McHale bale wrapper, Claas hay rake covering up to 8.8m, Pottinger front and rear mowers covering 6m, ASIP mower 3.8m as well as cultivation gear including power harrows, drills, rotary hoes and fertiliser spreaders. Tractors are two Massey-Fergusons 140 and 160hp and two Fendts 240 and 270hp.

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Rural News // March 19, 2013

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Rural News // March 19, 2013

rural trader 63 The ultimate in paint protection

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FLYSTRIKE AND LICE

www.clicdualwheels.co.nz

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

 0800 766 737

Fantastic Penetration

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

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

  

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

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

www.painfreeday.co.nz

FLEXISKIN RAINWEAR SALE! 40% OFF OFFER AVAILABLE 2 WEEKS ONLY! NEW! WATERPROOF, BREATHABLE & LIGHTWEIGHT $80 valued at $200 $70 valued at $140 Please add $10 Freight per order

$60 valued at $120

$80

valued at $190


0034721

390x265.02 1 Stop Water Shop!

THE ONE STOP WATER SHOP Phone 0800 625 826 for your nearest stockists

WATER STORAGE TANKS

12,000L & 22,500L FREE DELIVERY IN NORTH ISLAND

For the cheapest New Zealand made 22500L Water Storage Tank call today on 0800 625 826. 10 Year Guarantee.

RANGE

d= diameter h = height mm g = gallons *22500 litre • d: 3500 h: 2500 g: 5000 .......... $2595 *12000 litre • d: 2400 h: 3000 g: 2750 .......... $2795 5000 litre • d: 1800 h: 2300 g: 1000 .......... $1685 3750 litre • d: 1800 h: 1800 g: 850 .......... $1520 2200 litre • d: 1800 h: 1300 g: 500 .......... $1175 2000 litre • d: 1500 h: 1600 g: 450 ............ $915 1800 litre • d: 1200 h: 1800 g: 400 ............ $915 1400 litre • d: 1500 h: 1200 g: 310 ............ $715 1400 litre • d: 1200 h: 1500 g: 310 ............ $715 1000 litre • d: 1200 h: 1100 g: 200 ............ $495 800 litre • d: 900 h: 1400 g: 175 ............ $475 500 litre • d: 900 h: 1000 g: 110 ............ $328 225 litre • d: 600 h: 1000 g: 50 ............ $210 150 litre • d: 600 h: 800 g: 30 ............ $169 Level indicator ........................................................$165

22,500L only $2595

Colour choice available 20-50mm outlet fitting supplied

* North Island only

Warranty subject to correct installation. Instructions available

North Island prices only

CULVERT PIPES New Zealand’s CHEAPEST Culvert Pipes! FREE joiners supplied on request. • Light weight, easy to install. Made from polyethylene

RANGE

New Zealand’s best value per litre of water. Check out our prices you won’t find better.

RANGE

d= diameter h = height l = length 1900 litre open d: 1900 h: 600 1100 litre open l: 2100 h: 550 1000 litre open d: 1700 h: 580 820 litre bridge d: 1575 h: 580 820 litre open d: 1575 h: 580 620 litre bridge d: 1450 h: 580 620 litre open d: 1450 h: 580 420 litre bridge d: 1300 h: 500 420 litre open d: 1300 h: 500 300 litre open d: 1100 h: 400 150 litre open d: 900 h: 350 420 litre square l: 1300 h: 400 220 litre square l: 1200 h: 320

ALL PRICES INCLUDE GST

Joiners supplied free with culvert pipes

w = width g: 420 .................$685 w: 1450 g: 240 ...$495 g: 220 .................$495 g: 180 .................$466 g: 180 .................$425 g: 135 .................$388 g: 135 .................$348 g: 93 .................$320 g: 93 .................$295 g: 66 .................$235 g: 33 ................$148 w: 1100 g: 93 .....$320 w: 820 g: 48 .....$270

x 6 metre ............................................ $410 x 6 metre ............................................ $515 x 6 metre ............................................ $690 x 6 metre ............................................ $925 x 6 metre .......................................... $1399 x 6 metre .......................................... $2175 x 6 metre .......................................... $3475

Bridge

Ballcock protected

Open

20mm ballcock installed

Square

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

HM0040950©

WATER TROUGHS

300mm 400mm 500mm 600mm 800mm 1000mm 1200mm


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