Rural News 18/6/2013 by Rural News Group

ahuwhenua trophy Tarawera Station head off contenders to take out the top prize . page 14

machinery A new sprayer with a bigger, wider boom lifts productivity for Taupo farmers. page 33

conservation Out-going DoC chief suggests ripping up and starting the tenure review all over again.

Rural NEWS

page 6

to all farmers, for all farmers

june 18, 2013: Issue 540

www.ruralnews.co.nz

Pig’s ear for MPI NZ PORK won an interim decision late last week in the Supreme Court banning raw pork imports from countries which carry Porcine Reproductive and Respiratory Syndrome (PRRS). The decision stops Ministry for Primary Industries (MPI) using a proposed new Import Health Standard which would allow raw pork meat up to 3kg from the EU (other than Sweden and Finland), Mexico, Canada and the US into the New Zealand market. Only the current health standard can now apply, which allows import of meat which goes through further processing such as heat treatment or curing such as bacon or ham. The interim order is in place until NZPork’s ongoing battle with MPI on pork imports returns to the Supreme Court on June 26. “We are pleased with this decision,” NZPork chairman Ian Carter says. “The court decision allows fresh pork to come in under the current import health standards which requires further processing before release into the New Zealand market, but the new import health standard cannot be introduced except at the discretion of the court.” The PRRS mutates constantly so a vaccine cannot be developed for it, NZPork communications manager Sarah Crysell told Rural News. If a farmer gets the virus in the herd it is likely to require slaughter of the whole herd. – Pam Tipa • See background on court battle P17

Sheep data questioned peter bu rke peterb@ruralnews.co.nz

THE INTEGRITY of some data contained in the MPI Situation and Outlook report has been questioned by Beef + Lamb New Zealand chair Mike Petersen. Rural News asked Petersen for comment on the report in relation to the projected lamb prices, which estimate

the schedule price for lamb for 2013 will be $4.75 cents/kg increasing to just $4.80 next season. “This doesn’t sound right to me. Certainly the expectations we have been given from meat companies are that we are going to see a significant rebound in pricing on the back of short demand,” Peterson says. “The key thing is that farmers

need good data to make good decisions. If farmers saw these numbers and believed they were only going to receive effectively the same price as they received this year, then it doesn’t provide any confidence for the sector and for people to invest in the sector.” While some of the data in the MPI report is sourced from B+LNZ, other data is what’s known as ‘aggregate data’

– data based on various models. This contrasts with the B+LNZ farm survey which Petersen claims is statistically robust. He says B+LNZ is also well ‘connected’ to the meat industry. Petersen hopes that B+LNZ and MPI can work together to ensure more accurate data is put out in the public arena. However, it should be noted that the MPI data in the report is based on estimates in May, while the B+LNZ report, due out in July, will be based on end of season data. Meanwhile, Petersen expects high demand and prices for store stock in spring. He says a lot of capital stock were sold during the drought and many farmers will be looking for stock to eat the grass that will hopefully be there in spring. @rural_news facebook.com/ruralnews

a first for the fieldays It was a first time trip for Gary and Ginny Downs and their children Peter, Anne, Esther and Marcy who have come all the way up from the Chatham Islands where Gary flys for Air Chathams. Ginny says that their son Peter came up in 2013 with his grandparents and had so much fun that the family decided to come up again. More Fieldays page 4

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news 3 issue 540

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PKE levy proposal slammed su desh kissu n sudeshk@ruralnews.co.nz

News �� 1-17 markets �� 18-19 agribusiness �� 20-21 Hound, Edna �� 22 Contacts �� 22 Opinion ��22-24

THE GOVERNMENT’S proposed levy on palm kernel expeller (PKE)) imports has been described by farmers as another “merry-go-around of money”. Federated Farmers Dairy chairman Willy Leferink says instead of taxing PKE users – mostly dairy farmers – MPI should lift its game on biosecurity. He sees no need for a biosecurity levy on PKE but acknowledges farmers will have no choice but to pay if the Government goes ahead with its proposal. “There has been no biosecurity incursion involving PKE,” he told Rural

News. “Therefore, any new levy on PKE imports should be totally justified. It should not be another merry-go-around of money.” Primary Industries Minister Nathan Guy announced last week a new levy on PKE imports or increasing the existing levy may be looked at. The extra money will fund inspection of PKE manufacturing and storage facilities in Malaysia and Indonesia. But Guy says any such proposal would have to be consulted on and have industry support. “Overall we have a strong and robust system, but a levy may help provide further reassurance to industry if they see the need to fund this,” says Guy.

MPI officials visited and inspected a number of palm kernel manufacturing and storage facilities in Malaysia and Indonesia, and overall found good systems in place. The visit followed concerns raised by Federated Farmers about lax biosecurity standards at some plants. The MPI report to be released soon will show that any biosecurity risk from PKE remains low. PKE is an important source of supplementary feed for the dairy industry. Guy says it’s important to note that every shipment is heat treated to kill any traces of foot and mouth disease, and is also fumigated and inspected.

“However there are two areas of further improvement identified. Firstly, a small number of facilities need to improve their systems to keep birds and rodents out. “MPI have reviewed import documentation and have not found any specific evidence that PKE has been imported from non-approved facilities. However, MPI and Malaysian authorities will strengthen the legal requirements to provide additional assurance that PKE from unapproved facilities cannot be exported to New Zealand.” • More on page 9 @rural_news facebook.com/ruralnews

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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

Rob Harvey of PGG Wrightson coaxes another bid out of buyers at last week’s Temuka sale. In a large yarding of stores, this line from Central Otago made $63. A couple of top pens scraped over $70 but one pen of lights made just $30. “Who’d have thought you’d be buying lambs for $30 in June,” noted one auctioneer wryly.

BALLANCE AGRINUTRIENTS has ‘drawn a line in the sand’ as to how far it will go in providing free nutrient budget and management planning services to shareholders. A standard annual budget and plan is still part of the shareholder package but where clients are asking for more detailed analysis, for example when considering a change in farming system, it’s now charging an hourly consultancy fee. “What it’s meant to do is recognise the time and effort that goes into that nutrient management role,” general sales manager Andrew Reid told Rural News. The chargeout rate is on a par with typical farm consultancy services, he says. “The under-lying issue is that there is a lot of pressure being put on farmers by regional councils and new regulations and the fertiliser industry is being turned to more and more to provide these services.” Ravensdown was unable to respond to Rural News’ enquiry before this article went to press. Both cooperatives released new price lists at the start of the month with core products down $10 to $80/t.

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Rural News // june 18, 2013

4 news

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FARMER SUPPORT is crucial for the country to double exports by 2025, says Primary Industries Minister Nathan Guy. Opening the 45th National Fieldays in Hamilton last week, Guy reiterated MPI’s goal to double the value of annual primary sector exports to $64 billion, in real terms, by 2025. He stressed MPI is “going to need every farmer to help us get to that target. We’re going to back you guys like we do with the primary growth partnership.” He also spoke about boosting the performance of Maori agribusiness. About 1.5 million hectares are owned by Maori. But only 300,000ha are in full production. Another 600,000ha is partly productive and the remaining 600,000ha produce nothing, Guy says. Maori agribusiness is a government priority, and MPI is working

ga re t h g i l lat t

TARANAKI STUDENT Ayla Hutchinson (13), in her first year at Inglewood High School, won several awards and was in line for a premium award at National Fieldays for her invention that makes safer the task of chopping kindling. Ayla’s invention was prompted by an accident her mother had while cutting wood. “My mum was cutting kindling and she slipped and cut her fingers,” she told Rural News. “It just caught the tip of my fingers, but it freaked me out and I had to come up with something for a Fonterra science fair so that became my problem.” She took orders for 80 wood splitters at Fieldays and says she has also been approached by manufacturing firms eager to mass-produce her invention. “I’ve had eight or nine people come up to me and say they’d like to make it so it’s a case of sorting through them and picking one.” • More on Fieldays in our July 2 issue

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with Maori to help them maximise the sustainable use of their primary sector assets. “There is a discernable shift happening in the ownership and management of Maori freehold land,” says MPI director general Wayne McNee. “Maori landowners are taking a more active approach to fully capitalise on huge gains possible by increasing the productivity and profitability of assets, and by making the most of opportunities to develop the value of its primary produce. “Our estimates show that this could generate another $1.1 billion in export revenue, which would make a real difference to Maori communities and the wider New Zealand economy.” About 130,000 people were expected to flock to the Fieldays. The four-day event attracted at least 1000 exhibitors and business delegations from 25 countries.

Composite sheep wins comp FOR THE first time a composite flock has landed the national title in the Ewe Hogget Competition, with Robert and Jean Forrester’s Wairere composites coming out top on points compared to the five other breed winners. “It’s just completely overwhelming: we didn’t in our wildest dreams expect to win,” Robert told Rural News. Runner-up was Romney winner, Georgie Cameron, Waitaki (as featured in Rural News, May 21). Forrester says two good seasons in succession on their 228ha flat-to-rolling farm near Amberley, North Canterbury, helped their cause, as did the drought in other regions. “We knew our performance was

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really good but so was a lot of the others’.” Mixed aged ewes, due to lamb July 25, have just scanned at 200% and two-tooths, which scanned 155% and lambed 133% as hoggets last year, are at 184% this year. Hoggets, which start lambing August 15, hadn’t been scanned last week. These days their composite is more or less a 3/8 Romney, 3/8 Texel, 1/8 Finn, 1/8 East Friesian. “The mix has changed a wee bit over the years. Originally there was a bit of Poll Dorset in there so there might still be a little bit of that in our older ewes.” A field day will be held on the Forrester’s property in the spring.

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Rural News // june 18, 2013

news 5

sud es h k i ssu n sudeshk@ruralnews.co.nz

A SMALL group of Fonterra farmers are locking in their milk price at $7/kgMS this season. The 200 farmers are part of a guaranteed milk price (GMP) trialed this season by the co-op. It allows farmers to lock in a milk price announced at the beginning of a season for up to 75% of their milk supply. In the unlikely event of the farmgate milk price dropping below $7, the 200 farmers receive the lockedin price. While Fonterra is confident and has announced an opening forecast of $7 for the new season, Westpac economist Nathan Penny isn’t so bullish. Westpac’s opening forecast for the season is $6.50/ kgMS. Penny says the New Zealand dairy industry has rebounded after the drought, easing global supply concerns and bringing prices back. Fonterra expects milk production to grow 2% this year. But Westpac is forecasting a 5% lift. Penny says the bank is more bullish on production and less bullish on price compared to Fonterra. He says the GMP pilot programme involves less than 1% of Fonterra’s suppliers and doesn’t pose a risk to the co-op. “In terms of risk, we’re talking about the very small end of scale.” Federated Farmers Dairy chairman Willy Leferink says GMP is a good way of securing the businesses of some farmers. “It’s a volatile world out there and some farmers will be happy to secure a milk payout no matter what happens to global prices.” The pilot programme was developed to give farmers greater certainty but also more options in how they structure their business, says Fonterra’s director of commodity risk and trading, Bruce Turner. The co-op is looking for a broad base of farmers who are at different stages of their farm’s operations, have varying herd sizes and are located across the country. “The $7.00 GMP will allow farmers who require greater certainty for their farming business to better plan for the full farming year, knowing exactly how much money they will receive for a set portion of their milk supply,” says Turner. “As part of our cooperative principles we’re always looking at ways we can better support our shareholders. We will monitor the pilot over the next season and provide feedback to all shareholders on the benefits and the risks and this way farmers can see if it is something that might suit them in the future.”

Sheep sector needs to fight peter burke peterb@ruralnews.co.nz

THE SHEEP industry needs to fight back, says a primary sector leader, Merino New Zealand’s John Brackenridge. He told Rural News, at a function to mark three years of the Primary Growth Partnership (PGP) initiatives earlier this month, that the sheep was a much more versatile animal than the cow and has heaps of ‘latent potential’. “It’s about looking upon it differently. There’s huge demand for fine wool,” Brackenridge says. “So what if we can apply some genetics and genomics work to get a finer fleece on the back of an animal. It’s matter of looking at the sheep and

asking ‘how much potential is there?’ And instead of approaching it in a one- or two-dimensional manner – which is just meat for UK or wool for carpets – let’s look at other options.” Brackenridge says these options could be meat, leather, nutriceuticals and lanolins. He says in many ways people are hypnotised by the circumstances of the last century and need to engage in some ‘disruptive thinking’ to create opportunities for innovation. “It’s not about the status quo – it’s about doing things differently than we currently do.”

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Brackenridge believes one of the spillover benefits of PGP in the primary sector is how it’s enabled industry groups to work more collaboratively to make inroads into markets they are all trying to break

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6 news

Doc chief calls time on tenure review a n d rew swa l low andrews@ruralnews.co.nz

RIP IT up and start again: without quite saying as much, that is what the outgoing director-general of the Department of Conservation, Al Morrison, suggests should be done with tenure review. Speaking to Federated Farmers High Country conference in Ashburton earlier this month he mooted a “starter for 10” on managing the high country: just give the freehold title to the runholders. “You want your pastoral lease? You can have it,” he said to the 40-odd delegates. Government makes little financially

from the leasehold system as it stands, so it wouldn’t lose out, and land managers typically have a greater interest in conservation if they own the land, than if they don’t, he says. The caveat to his concept, which he stresses isn’t Government or DOC policy but simply some “random thoughts” of his own, is that there should be some strings attached to the freehold title. “You can have your farm but you have to have a management plan. Not one that’s imposed, but one we do together.” The plans would look at the tops and work out if, when and where graz-

ing would be appropriate for conservation. They’d also look at lowland conservation values, notably wetlands, and if and how those need protecting, similarly public access requirements, preservation of heritage etc. “We’d just do it together and forget all this [monetary] equalisation crap!” There would be no need for miles of new fences over extreme terrain to mark boundaries between newly freeholded land and conservation estate; no need for years of lawyers’ fees to reach a deal. When Morrison finished his presentation, Feds’ High Country chair-

Conservation for prosperity MORRISON’S “RANDOM thoughts” dovetailed with an earlier part of his presentation, which outlined a shift in DOC policy to “conservation for prosperity”, recognising and realising the economic value in conservation, not just preservation of unique species and beautiful places for their own sakes. While some governments and businesses are still struggling

with that concept, internationally consumers aren’t, he says. “They’re saying ‘if you don’t do something about your environmental footprint, we’re not going to buy your product’.” That commercial incentive should drive industry to invest in conservation, helping tackle work DOC would like to do, but due to budgetary constraints, can’t. “The key is to make our unique

species and places indicators of how healthy our ecosystems and environment are,” says Morrison. Fonterra is among those leading the way, with a DOC staff member seconded to the cooperative to help direct its commitment of $20m for community-driven conservation initiatives over the next 10 years. Morrison hopes the work will prove to have value.

man Graham Reed quipped: “Where were you 15 years ago?” implying the past decade of angst and expense over tenure review might have been avoided. Morrison fired the comment back at him, and drew an analogy with the Otago Rail Trail. When that was proposed many farmers were outraged, fearing an influx of hoons leaving bottles and destruction in their wake. “They thought that the sky would fall in. It was going to be a disaster…. But now some of the same farmers are standing up and saying it’s the best thing that’s ever happened…. We’ve just got to get over ourselves; both of us.” Donald Aubrey, of Ben McLeod Station, Rangitata, and a former vice president of the federation, acknowledged Morrison’s proposal “could work, particularly in respect of tussock grassland.” Dividing stations under tenure

Out-going Conservation Department director general Al Morrison.

review can damage tussock on both sides of the fence, farmers being forced to manage land more intensively owing to farming a reduced area, while lack of grazing on the DoC side allows invasive species to dominate, he said. “The issue is not so much the tussock, as the intertussock.”

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news 7

Tax and spend are Labour’s answers a n d rew swa l low andrews@ruralnews.co.nz

AGRICULTURE IS up to its eyeballs in debt and has to be bolder in its marketing, Labour spokesman for rural affairs, biosecurity and agriculture Damian O’Connor told the Feds High Country Conference. In a broad-ranging address, O’Connor touched on biosecurity, branding, the meat industry, monetary policy and capital gains tax. Global population growth means there are huge opportunities for food and fibre producers but opportunities are no guarantee of success, he stressed. Asian Governments and corporations are keen to vertically integrate and will “quickly capitalise on any weaknesses in our business models,” he warned. Building brand New Zealand, including 100% Pure, is the key, he believes. High country farmers, by virtue of where their properties are,

are in the box seats to capitalise on that brand, and have runs on the board with brands such as Icebreaker. The opportunity is there to be taken with beef and sheepmeat. “If we don’t have change in the meat sector we are facing a mono-economic environment that is high risk and dependent on the dairy sector alone.” Despite $350m being poured into meat industry initiatives they would do “very, very little unless we sort out the structural issues,” he added. “It’s the lack of faith in the future that’s the biggest worry.” Whatever the sector, cooperation among farmers is crucial, he believes. “Our tendency as farmers to compete at the farmgate has destroyed many great collaborative initiatives and I hope the success you’ve seen so far [with fine wool] can indeed continue.” O’Connor faced questions on exactly how Labour would change monetary policy to bring the New

Zealand dollar down, and capital gains tax, which he said is needed “so people can invest in productive outcomes, not speculative outcomes.” “What we are seeing across the country is land prices continuing to creep up. We should have had that capital gains tax in place a number of years ago so it forces that discipline on investors.” Some international investors require just 2.9% return on their money to make it worthwhile investing in farming in New Zealand because their cost of capital is so much lower, he pointed out. “Some may say there’s no harm in that, maybe we still get the production off the land, and I’m not saying it’s all bad. “I’m saying we’re creating an unfair situation here that’s giving an advantage to people who have access to low cost offshore capital and making it hard for people who rely on the internal banking sector to get them into, and keep them in farming.”

Wildings no.1 problem GEESE, RABBITS and hieracium cause serious headaches in the South Island high country, but if something isn’t done to stop the march of wilding pines there won’t be a station left farming, delegates at Federated Farmers High Country conference in Ashburton heard. “We have no option but to review our policy in light of what we now know about wilding pines or there won’t be a high country station left,” Alistair Ensor, of Glenariffe Station in the upper Rakaia, warned. His comments, made from the floor during a session on pest control, were echoed by Geoffrey Young, Southland. “They’re a far greater threat to the high country than anything else.” Department of Conservation Twizel area manager Rob Young said new cocktails of chemicals are giving more control, meaning more can be done with the same funding. As a result of the discussion Feds’ High Country policy advisor Bob Douglas is drafting a new policy on the problem. Delegates also discussed the challenge of coordinating goose control since the birds were delisted and Fish and Game relieved of its obligation. “It’s

most likely there won’t be any more funding from Government,” warned Douglas. Feds High Country chairman Graham Reed said while farmers were keen on eradication, that didn’t win support from other interested parties and buy-in from all parties is seen as key to successful control operations. However, several privately organised culls had succeeded and given the challenge of coordinating wider groups, such private operations “probably are the best way forward” in the meantime, he says. Douglas says forming control groups would be the best way to elicit funding for control operations, but the birds’ delisting does mean anybody is free to have a go at the geese. “But one thing we have learnt over the years is that geese are a wily bird. If you don’t get them all in one spot, all you do is move them onto another property and pretty soon they become rather gun-shy.” As for rabbits, numbers are reaching pre-calicivirus levels but research into dropping 1080 baits in strips rather than a blanket approach looks like achieving similar control to blanket baiting with a 44% saving in bait cost and 29% saving in flight costs. – Andrew Swallow

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Rural News // june 18, 2013

news 9

Minister engages on PKE imports a n d rew swa l low andrews@ruralnews.co.nz

BIOSECURITY CONCERNS with palm kernel expeller (PKE) meal imports have gone to the top of MPI, with Minister Nathan Guy last week making his first statement on the subject. It shows he instigated ministry officials’ audit and physical inspections of Malaysian and Indonesian supply chains at the end of last month (Rural News, May 21), and standards are to be tightened as a result of their findings. “After some concerns were raised by Federated Farmers I instructed officials to visit offshore facilities to review the safeguards in place,” said Guy last week. “The full reports will be released soon and [they] have concluded that any biosecurity risk remains low. “It’s important to note that every shipment is heat-treated to kill any traces of foot and mouth disease, and is also fumigated and inspected. However there are two areas

of further improvement identified. Firstly, a small number of facilities need to improve their systems to keep birds and rodents out.” Also, while no specific evidence of PKE imports from non-approved facilities was found in a review of import documentation, MPI and Malaysian authorities are to strengthen legal requirements to provide additional assurance that PKE from unapproved facilities cannot be exported to New Zealand. “A further option being considered is a new levy on PKE imports, or an increase in the existing biosecurity levy to increase the level of inspection in these countries. Any such proposal would have to be consulted on and have industry support,” says Guy. Federated Farmers Grain and Seed vice chairperson David Clark, who co-authored a damning report on the PKE supply chain following a visit to Malaysia in September, says the minister should be congratulated for send-

Clark also questions how visual-only inspections of PKE imports can possibly spot soil contamination in a product that looks like dirt anyway. While New Zealand’s standard is for zero soil contamination, when he was in Malaysia he saw data showing PKE to have an average “shell and dirt”

content of 11.9%, in a range of 3.6-17.8%. While the data was from 1989, Clark says it was presented as if it is still the norm. “The question is, does it have dirt in it or not?” MPI told Rural News no tests for soil contamination of PKE are conducted, other than visual inspec-

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ing his officials to Malaysia and acknowledging there may be some shortcomings in the supply chain. “It is pleasing that changes are being considered to make the process more robust,” he told Rural News. “I do however have concerns with the [minister’s] suggestion that ‘every shipment is heat treated to kill any traces of foot and mouth dis-

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ease...’ In my opinion this is the key issue with PKE. The kernels simply get hot when they are crushed during oil extraction and this occurs up country in the mill some weeks or months prior to export. Subsequent storage and handling provides opportunity for contamination, and reliance upon this heat for biosecurity purposes is flawed in my view.”

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10 news

PSA-hit kiwifruit orchards abandoned pa m ti pa pamelat@ruralnews.co.nz

ORCHARD MANAGEMENT companies are interested in leasing abandoned Psa-V-hit kiwifruit orchards and returning them to viable economic businesses. Kiwifruit Vine Health (KVH) says it’s aware of

about 50 orchards where the owner is no longer managing them. These orchards pose a high risk to the spread of Psa-V and can impact on the establishment of new, Psa-resistant varieties. “There’s orchards we are aware of either through our own records or through regional coun-

cils where the owner is no longer managing them so, in our terms, they are abandoned,” says KVH chief executive Barry O’Neil. “They are not being pruned, they are not being sprayed. There’s interest from orchard management companies, both associated with both

post-harvest and private operators, to look at these orchards and consider whether or not they could return them to an economic producing unit under a lease agreement. “If that’s an option, we would like to see it pursued because it takes away the risk factor to our industry from a PSA

perspective,” O’Neil explains. “If a grower is having trouble managing their orchards against the impacts of Psa we want to have a talk to them about other options such as managing on their behalf which we think is a viable option for such owners.” The orchards could be restored to viable, ecoAbandoned kiwifruit orchards could be converted to the G3 varieties through leasing arrangements.

nomic businesses with the ability to increase the capital value of the property. This could involve transitioning to a new variety or by a new leasing and/ or management arrangement. O’Neil says in some

cases it could be a Hayward Green variety orchard and it may be able to be grafted over to a new, more economical variety, such as the new Gold variety, G3. “So we see that as a viable option in some of these situations,” he says.

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On-farm sampling has confirmed this year has been a vintage taste year for Zespri kiwifruit. Carol Ward, Zespri general manager marketing, says every block of every Zespri-supplying orchard is tested for levels of dry matter before harvest, with dry matter corresponding to sweetness in ripe fruit. “We’re seeing the highest-ever levels of dry matter for all categories of Zespri Kiwifruit, which means a vintage year for fantastic-tasting fruit. Dry matter is up substantially in all our varieties– so the fruit is tasting great.” Offshore marketing teams say this is driving strong, repeat purchasing by consumers. It’s believed record sunshine levels in New Zealand this summer contributed to this record-tasting crop. Most of Zespri’s New Zealand kiwifruit is grown in the Bay of Plenty region, which had the highest sunlight levels in January, February and March this year since records began on modern equipment in 1992.

Correction The Otago Nutrient Nous seminar relayed in Rural News June 4 was organised by local farmer organisation Clutha Agricultural Development board and not Beef + Lamb as stated.

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Rural News // june 18, 2013

news 11

Primary exports struggle pe ter burke peterb@ruralnews.co.nz

Sarah Kennedy

Fonterra stretches its cheese returns sud es h k i ssu n sudeshk?@ruralnews.co.nz

FONTERRA is boosting its mozzarella cheese range, adding more flavours and making it stretch further on a pizza. The co-op exports 17,000 tonnes of mozzarella to pizza makers annually and is running out of capacity. Fonterra managing director nutrition Sarah Kennedy last week told an agribusiness innovation and growth seminar in Hamilton of plans to take the patented product to new stages. “We are taking to the board for approval in the next few months, stages two, three and four of this fabulous product.” The seminar was organised by the University Commercialisation Offices of New Zealand (UCONZ), as a pre-National Fieldays event. Kennedy says Fonterra scientists worked five years with universities and a crown research institute to develop the cheese. They also had help from MPI’s primary growth partnership. The mozzarella is made in three hours, Kennedy says. “You put milk in one end and out comes frozen shredded mozzarella that goes in 25kg blocks into the cool store. Not only does it take three hours to make, it also reduces my storage cost.” She believes Fonterra has the winning combination. “Just as the Americans lead processed cheese we can lead natural cheese at lower cost,” she says. Speaking on Fonterra’s innovation capabilities, she refers to turning volume into value at a fast pace. “We need commercialisation at scale. We have a wall of milk coming to us every year and we have to turn that into value for our shareholders.”

THE CHANCES of the primary sector playing a pivotal role in meeting the government’s goal of doubling exports by 2025 are not looking good – based on the figures in the Ministry for Primary Industry’s (MPI) latest Situation and Outlook for Primary Industries report. The report estimates the drought has cost the country $1.3 billion in export revenue in the season now ending, and it notes the impact of the high New Zealand dollar. It also says primary sector revenue will increase by 2.2% to $24.1 billion in the year to the end of June 2014 and grow to $29.5 billion by 2016/17. Primary Industry Minister Nathan Guy, who fronted the launch of the report, admitted that on the present forecast the 2025

“Overall it’s been a season of two halves with favourable growing conditions throughout the spring and then the massive drought to contend with in the summer...” target will not be met unless other things happen. However, Guy told Rural News he’s relying on gains to be made from the Primary Growth Partnerships, the government’s initiative to promote local irrigation schemes and Maori agribusiness mobilising itself. These add-ons, plus hoped-for gains from various free trade agreements and sustainable farming fund initiatives, are about $25 billion. However, like the 200 markets where New Zealand sells it exports, things can change and back home the weather is always an unpredictable factor. “Overall it’s been a season of

resources to effect change. Guy says government is well aware of the potential of Maori agribusiness. “MPI released a report a couple of months ago that said there is 1.5 million hectares in multiple Maori ownership. Of that, 300,000ha is in full production, 600,000 is in some production and 600,000 is not doing well. So the size of the prize for lifting the performance in Maori agribusiness is worth about $8 billion and that’s about 3600 jobs. That’s why the government and MPI are very focused and working in partnership with iwi to lift the overall productivity of Maori agribusiness.” Guy says the value of irrigation has come to the fore in the drought. Reports show that if the 400,000ha available for irrigation was utilised it would generate $4 billion in extra primary exports. • The good, bad and ugly – p12

two halves with favourable growing conditions throughout the spring and then the massive drought to contend with in the summer and we will feel the consequences of the drought for some time,” Guy says. “In the case of dairy, it’s good news, the meat sector is in for challenging times with low lamb returns, forestry is good, horticulture’s steady but may suffer a slight decline due to PSA.” This year the report devotes special section to Maori agribusiness and showcases dairy company Miraka as a success story. This is one area where MPI has upped the ante and devoted money and

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Rural News // june 18, 2013

12 news

SOPI’s good, bad and ugly p e te r bu r k e peterb@ruralnews.co.nz

MPI’S LATEST Situation and Outlook for Primary Industries report gives an interesting snapshot of the primary sector, but its predictions will not surprise farmers and others in the sector. Put simply, the drought has hit the sector; dairying is marching on but the sheep industry is going to struggle for many well-known reasons. The glimmer of hope on the horizon is that the dollar may weaken and help export returns. MPI says the longterm outlook for the dairy sector is very positive. By 2017, there’ll be nearly half a million more cows and more milksolids; revenue from dairying will be $17.7 billion compared with the

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$12.9 billion estimate for the present season. The only hiccup in growth is that this season revenue from dairying will be down by 5.5% on the previous season – due mainly to the effects of the drought and the high exchange rate. The report also highlights the huge debt in the dairy sector – $30.5 billion. While it says the actual amount is not a worry, it would be a major concern if the debt was used for non-productive rather than productive purposes. The report also hints that, despite next season’s predicted higher payout, some dairy farmers may still have difficulty servicing their debt. Not surprisingly the outlook for lamb is gloomy. Based on MPI’s figures, an 18kg lamb next

season will fetch about $86.40 – a far cry from the $114 of 2012 and well shy of Federated Farmers target of $150. The report predicts

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that by 2017 breeding ewe numbers will be down to 20.4 million and export volume of lamb at 249,000 tonnes will be close to the 2012 figure. However, the

big hit is on lamb export prices – forecast to be down by 16.4% to $1.9 billion for the year ended June 2013. MPI predicts these will decline further

in 2014, due mainly to the drought, and only just get back to current levels by 2017. The drought is also predicted to see a 38% decrease in hogget mating, eroding lamb numbers in 2013/14 and possibly beyond. The picture for wool is equally gloomy with exports down by 16.3% to $633 million. But the report predicts that by 2017 wool exports will reach $707 million. The outlook for beef is a little more promising. Although export revenue is expected to decline by 3.3% this year, MPI says the revenue from beef will rise to $2.17 billion by 2017, due to increased international prices and a drop in the value of the New Zealand dollar. Beef cattle numbers are

expected to continue their slow decline. Likewise venison exports are predicted to decline. Horticulture exports currently earn about $3.5 billion, unlikely to change much in the coming years as the effects of PSA leads to a sharp contraction in kiwifruit exports. MPI says a better balance between supply and demand will work in favour of the wine industry, pipfruit will depend on the success of new varieties and any growth in vegetable exports will be linked to the development of irrigation. Forestry looks positive: returns are expected to stabilise this year and New Zealand is well positioned to increase export returns by adding value to additional wood coming on the market.

Off to challenge the world peter burke peterb@ruralnews.co.nz

TEN AGRIBUSINESS students from Massey and Lincoln universities are off to the US to take part in an international agribusiness challenge. The event will be held as part of the International Food and Agribusiness Association annual conference in the Coco Cola capital of the world – Atlanta, Georgia. It’s the first time New Zealand students have entered. A senior lecturer in agribusiness at Lincoln, Nic Lees – who’s going with the group – says 27 teams from 16 countries will compete. The New

Zealanders will be split into two mixed teams. “They will be given an agribusiness case study similar to the Harvard Business School ones. So basically it’s a real world business problem and they get five hours in their group to go away, analyse the problem and present a solution to a panel of industry people. They then get evaluated on that and the top three teams then get selected and they present to the entire conference their solution and then the final team is selected as the winner.” Lees says the students have

practised at the weekends by going through previous Harvard Business School case studies. The students will do a post conference tour of northern Florida. “On the way we are going to visit a couple of research places including the University of Georgia and the University of Florida. “We will also visit farms; in eastern Georgia there are New Zealand dairy farmers developing a dairy grazing system.” Lees points out the students will have opportunity to develop their own international agribusiness networks.

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Rural News // june 18, 2013

14 news

Triumph for Tarawera p e te r bu r k e peterb@ruralnews.co.nz

STAFF AND whanau of Tarawera Station were jubilant at the news they had won the Ahuwhenua Trophy. Hugs, kisses and a haka enriched the celebrations as they headed on stage to receive the trophy. Tarawera headed off two strong contenders: Te Uranga B2 Incorporation from Taumaranui and Te Hape B

Trust from Te Kuiti. Tarawera Station is a 2865ha (effective) property,about 60km west of Napier on the Napier-Taupo highway. It runs 30,000 stock units including 16,000 Highlander Composite breeding ewes. Its 1000 breeding cows are also a composite breed – the Red Stabiliser. The land is medium to steep hill country with pumice soils. The farm, like many farms in Hawkes Bay, was badly hit by the

recent drought, but despite all the challenges of farming difficult hill country, the Te Awahohonu Forest Trust – which runs the farm – has continued to produce good returns to its 1150 beneficial owners. The farm ranks highly against all other farms (not just Maori operations) in its class. For example, last year it returned 10.3% on capital and earnings before interest. TAMIHANA NUKU, chairman of Te Awahohonu Trust, savours the moment after the trust’s sheep and beef farm Tarawera Station was announced winner of the Ahuwhenua Trophy for Maori farming excellence. The trophy was presented last week at a gala dinner in Napier, attended by 850 people. Presenting the award were the Deputy Prime Minister Bill English and the Minister of Maori Affairs, Dr Pita Sharples. It’s now 80 years since the Ahuwhenua Trophy was first presented.

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Winning is grinning JORDAN SMITH (22), a shepherd who works on a sheep and beef farm near Te Kuiti was named inaugural winner of the Ahuwhenua Young Sheep and Beef Farmer of the year. Smith told Rural News he’s wanted to be a farmer for as long as he could remember. He spent his school holidays working on farms owned by family members in Northland. “It was always fun and I thought it was for me right from the start. At school I was always excelling in agriculture.” But he found other aspects of school not to his liking and left at 15 and took a course in farming, before joining Landcorp. Since then, he’s worked on two other farms before joining the Kearins Bros Ltd farm, at Te Kuiti, four and half years ago. His motivation for entering the competition was to prove a point. “At school, farming was always deemed to be the drop kick subject for losers and no hopers and it wouldn’t take you anywhere. It dawned on me to take up the challenge and prove ‘look it’s not like that at all’,” he says. Smith says he’s “stroked” at getting the award and really enjoyed the gala evening where the awards were presented. He hopes wining the award will help advance his career.

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Rural News // june 18, 2013

news 15

Maori agriculture’s value not recognised p e te r bu r k e peterb@ruralnews.co.nz

THE VALUE and the important role Maori agriculture plays in the economy of New Zealand is not understood or recognised by most New Zealanders. That was the key message from most of the keynote speakers, including the Deputy Prime Minister Bill English, at the Ahuwhenua Trophy awards ceremony held in Napier recently. English doesn’t think the general public appreciates the size of Maori land ownership and the fact that Maori farmers are lifting their performance. “What you are dealing with at these awards is some of the top performing farms in the country – not just among Maori. “They are benchmarked against the best in the country and it’s fantastic to see the growth and enthusiasm among Maori for developing these assets. We’ve got a lot of undeveloped Maori

land where the government is working with Maori to get better rules so it can be developed because it’s one of the bigger potentials for growth in agriculture in New Zealand.” English says the aim is to lift the overall performance of all Maori land. He adds what’s impressive is that Maori invest a lot in R&D and in marketing relationships and processing capacity. “Maori have quite a different model from pakeha in that they are going to be around a long time.” Mainstream farming can learn from Maori in the way they run the governance structure of their large scale operations, English adds. “A lot of corporate type farming has come and gone because they try to get the benefits of scale but they haven’t got the governance and ownership that can hang it together and Maori seemed to have figured that out.” Labour party leader David Shearer agrees. He says the success of Maori

farming is a hidden story which needs to be told better. He says the contribution of Maori to the economy is about $16 billion and probably more if the multiplier effects were applied. “The great thing about this and what we are seeing in the finalists is that they are at the top of their game and they are as good as, or better, than any farmer in New Zealand. “So many New Zealanders have a particular perception of what Maori are doing and have absolutely no clue about the excellence of what’s going in the farming area.” Shearer says the great thing about Maori is that they think in horizons of 25-50 years, rather than the two to fiveyear time frame in which most businesses operate. Maori Affairs Minister Dr Pita Sharples says he was proud to be a part of the Ahuwhenua Trophy competition. “It’s so exciting to see the innovation

the finalists have brought into their farming operations. It’s sad it’s not seen by the wider community. Maori farming is very much under the radar and this is a challenge for us.” Sharples would like to see mainstream farmers work more closely with Maori to be more cre-

ative, entrepreneurial and to add value to primary exports. He believes pakeha farmers can learn from Maori, but they also need to understand the feeling Maori have for their land. He says this came to light during discussions with the Chinese over Maori opposition to them buying land. “We explained that Papa is the

Labour leader David Shearer at the Ahuwhenua awards.

mother earth and Rangi is the sky father who nurtures the mother. “We said to them, ‘would you sell your mother?’ and they understood that straight away.” @rural_news facebook.com/ruralnews

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Rural News // june 18, 2013

16 news

From West Otago to beef genetic research in Canada alan harman

NEW ZEALANDER Fiona Buchanan travelled to Canada 19 years ago to hunt for the secrets of the country’s white whales but stayed on to become a beef cattle molecular geneticist at a leading university. The journey from Tapanui, West Otago, ended in Saskatoon, where Buchanan now is a full professor at the University of Saskatchewan. She had grown up on a

20ha farm with 300 head of sheep while her father worked for Wright Stephenson at Kelso. After completing a PhD in sheep molecular genetics at the University of Otago, she went to Winnipeg, Manitoba, for post-doctorate studies, researching the stock identification of beluga whales. The work was important. Identifying whether or not the summering populations of the unique white beluga whales (using

DNA markers called microsatellites) were actually breeding populations has ramifications for conservation and limiting subsistence hunting. “While I loved this work, I was happy to come back into livestock research as belugas do not feed the world,” she tells Rural News. She moved to Canada on a work visa with a plan to return to New Zealand after a couple of years. “I only applied for landed

immigrant status when I applied for the University of Saskatchewan position,” she says. “I am now a Can-iwi – that is I hold dual citizenship.” She is a professor in the department of Animal and Poultry Science, College of Agriculture and Bioresources. “I was hired as a beef cattle geneticist and it was nice to return to livestock as there are a lot of assumptions that have to be made when working

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with wildlife,” she says. Her current research involves feeding a reduced level of vitamin A in feedlot rations to TT steers. These have a gene variant in the enzyme that converts vitamin A to retinaldehyde – alcohol dehydrogenase 1C. These animals grade AAA compared to the other two genotypes that grade AA. “We have a feedlot trial with 2,000 head underway,” Buchanan says. Within a couple of years of joining the university she was asked to run its 100-year-old, 300head sheep flock. As far as the university brass was concerned, her New Zealand background made her a natural. “I grew up around sheep and all my uncles had sheep. We had 300 and the whole family helped out at lambing, tailing, weaning, shearing time. My brothers and I always had a pet lamb to raise.” The biggest difference between sheep farming in New Zealand and in the Great White North? “In

New Zealander Fiona Buchanan with part of the University of Saskatchewan’s sheep flock. (University of Saskatchewan photo).

New Zealand, we had grass all year round and supplemented with hay or grain as needed during winter. In Canada, we have to feed the sheep in the winter months. This year snow has been on the ground for six months – longer than usual.” The other big difference is the predators – coyotes. “They are just so smart. We even had a problem this year at the U of S sheep flock where a coyote killed two lambs and the university is in the middle of the city.

“One solution to this problem is to have guardian sheep dogs that bond with the sheep as pups and when a coyotes turns up to kill sheep the dog protects the flock thinking it is family by either chasing it off or killing it.” It’s one problem Buchanan will not have to worry about for much longer. The University of Saskatchewan is selling off its sheep flock as part of C$44.5-million in budget cuts. Ironically, the decision comes at a time to page 17

Rural News // june 18, 2013

news 17

Pig farmers off to court a final time p e te r bu r k e peterb@ruralnews.co.nz

THE PORK Industry Board is off to the Supreme Court later this month in a final attempt to stop pork meat imports into New Zealand because of fears of the disease Porcine Reproductive and Respiratory Syndrome (PRRS). The pork industry has been at loggerheads for many years with MAF and now MPI over the perceived risk of PRRS getting into New Zealand, with MPI set to allow trimmed cuts and claiming the risk is low. Pork Industry Board chief executive Owen Symmans told Rural News it is going to the Supreme Court to challenge the process that MPI went through to determine the risk of PRRS coming into New Zealand. Our coun-

try is one of only a handful without the disease. Symmans says the experience in the US shows that the PRRS virus mutates and is difficult to control. “It has a significant impact on production and we don’t want it here.” The difference between the risk calculated by MPI and the industry is huge, he says. “MPI made a decision based on its risk assessment which said the risk of PRRS coming in is one in 1227 years to be precise; whereas the research by Massey University shows this to be one in ten years – so we have a huge variation. “People are looking at investing in the industry and I know of one person who may invest $10 million in a new piggery,” Symmans says. “The thing that concerns him is [the risk to the investment].

If it’s one in 10 years you have to have a whole different set of responses in place; but if it’s one in 1227 years, that’s akin to no risk. “So our big concern is that the whole process MPI went through never satisfactorily resolved that risk issue.” Symmans says the

other issue that sits with PRRS relates to the backyard pig industry. Overseas research has shown the disease is most likely to start with people who have just a few pigs and it will then spread rapidly to the commercial sector. “In New Zealand this tends to be concentrated in the Auckland area with

owners picking up swill and raw meat and things from various institutions and places that are throwing it out,” he adds. “We don’t believe MPI has a real handle on where these small piggeries are, who owns them and what risk they bring.” @rural_news facebook.com/ruralnews

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of renewed interest in sheep farming, with a sheep management course organised by Buchanan attracting 32 students – far more than the four or five originally predicted. But then came the announcement of the budget cuts and the plan to disperse the flock. “Even though sheep have been on campus since 1911, the dairy cows still get most of the attention,” she says. “Sheep are not big business in Saskatchewan, not compared to beef cattle, but it is growing in the number of producers and the number of breeding ewes.” The number of registered ewes in the province grew from 60,000 in 2010 to 68,000 in 2012, and she expects that growth to continue. “Right now, only about 41% of all lamb consumed in Canada is produced in the country, but I think Saskatchewan producers will change that.” She and husband Richard Tomecek, a Canadian farmer producing crops and cattle, intend to retire to New Zealand when she finishes her career at the university.

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Rural News // june 18, 2013

beef market trends

Market snapshot Meat

North Island

South Island

Change c/kg

Last Week

Change c/kg

Last Week

Lamb - PM 16.0kg

4.98

4.88

Steer - P2 300kg

4.32

3.95

c/kgCWT

Bull - M2 300kg

4.27

n/c

3.80

Venison - AP 60kg

n/c

6.25

n/c

6.45

BEEF PRICES c/kgCWT NI

$4.5

Apr

May

Jun

Jul

Aug

South Island 16.0kg M Lamb Price $6.5

$5.5 5yr Ave Last Year This Year

$4.5

$3.5 Mar

Apr

May

Jun

Jul

Aug

2 Wks Ago

Last Year

4.32

4.30

4.10

M2 Bull - 300kg

4.27

4.25

4.20

n/c

3.50

3.25

5yr Ave Last Year This Year

$3.5 Jun

Jul

Aug

South Island 300kg Steer Price

$4.5

Change Last c/kg Week

Lamb - PM 16.0kg

4.98

4.88

4.32

3.95

3.38

3.10

Steer - P2 300kg

4.27

4.22

4.05

P2 Steer - 300kg

3.95

3.90

4.00

Bull - M2 300kg

4.27

n/c

3.80

n/c

3.80

3.95

Venison - AP 60kg

n/c

6.25

n/c

6.45

M2 Bull - 300kg P2 Cow - 230kg

n/c

2.90

3.00

M Cow - 200kg

n/c

2.70

2.90

Local Trade - 230kg

4.00

3.95

Change

2Wks Ago

3 Wks Ago

Cattle NI

-5%

38.8

40.7

43.9

47.1

Cattle SI

-11%

23.7

26.7

23.3

20.9

Cattle NZ

-7%

62.5

67.4

67.2

67.9

Bull NI

+18%

6.7

5.7

8.6

8.7

Bull SI

+16%

2.2

1.9

1.4

1.9

Str & Hfr NI

+1%

16.7

16.5

18.7

18.6

Str & Hfr SI

-21%

5.8

7.3

6.3

7.0

Cows NI

-17%

15.4

18.5

16.6

19.8

Cows SI

-10%

15.7

17.5

15.6

11.9

Last Year 5yr Ave

NZ Weekly Beef Kill

North Island 16.0kg M Lamb Price $6.5

Estimated Weekly Kill

$5.5

$3.5 Mar

Apr

May

Jun

Jul

Aug

South Island 16.0kg M Lamb Price $6.5

$5.5 5yr Ave Last Year This Year

Last Year

$3.5 Mar

This Year

$4.5

Apr

May

Change

Jun

Jul

Apr

May

Jun

Jul

Aug

North Island 300kg Bull Price

Aug

$4.0

Last Week

2 Wks Ago

Last Year 5yr Ave

95CL US$/lb

-2

1.98

2.00

2.09

1.75

NZ$/kg

5.46

5.45

6.03

5.25

$2.30

5yr Ave Last Year This Year

$4.5

Export Market Demand

$4.0

May

c/kgCWT

n/c

0 Mar

Apr

South Island

North Island 300kg Bull Price

Mar

North Island

M Cow - 200kg

40 $4.5

Meat

Local Trade - 230kg

1000s 5yr Ave Last Year This Year

Last Week

P2 Cow - 230kg

NZ Slaughter

$5.5

$3.5 Mar

P2 Steer - 300kg

North Island 16.0kg M Lamb Price $6.5

Change

lamb market trends

Demand Indicator - US 95CL Beef

5yr Ave Last Year This Year

$3.5 Mar $4.5

Apr

May

Jun

Jul

Aug

South Island 300kg Steer Price

Last Year This Year

$4.0

$2.10 $3.5

yr Ave Last Year This Year

$3.5

$1.90 Mar

Apr

May

Jun

Jul

$3.0 Mar

Apr

May

Jun

Jul

Aug

Procurement Indicator

$7.5 $7.0

2Wks Ago

3 Wks Ago

% Returned NI

+1%

77.8%

77.1%

69.63%

74.7%

% Returned SI

+1%

69.6%

68.8%

64.7%

68.2%

80% 5yr Ave Last Year This Year

$6.5 $6.0 Mar

Apr

May

Jun

Jul

Aug

South Island 60kg Stag Price

$8.0

Last Year This Year

$3.0 Mar

Change

North Island 60kg Stag Price

$8.0

Last Year 5yr Ave $8.0

Jul

Aug

North Island 60kg Stag Price

$7.5

5yr Ave Last Year This Year

$6.5 This Year

60% Mar

May

Jul

Procurement Indicator - South I. Last Year This Year

Last Year

Jun

Last Year

$7.0 5yr Ave

May

$7.0

70%

80%

$6.5

Apr

Procurement Indicator - North I.

$6.0 Mar $8.0

$7.5

yr Ave

Aug

Apr

May

Jun

Jul

Aug

South Island 60kg Stag Price

$7.5 $7.0

70%

5yr Ave

$6.5

This Year

Last Year This Year

$6.0 Mar

Apr

May

Jun

Jul

Aug

60% Mar

May

Jul

$6.0 Mar

Apr

May

Jun

Jul

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.

The best Agri Managers at the most connected bank. ANZ was awarded CANSTAR’s Best Agribusiness Bank – New Zealand for 2013. ANZ Bank New Zealand Limited.

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Rural News // june 18, 2013

news BEEF

price watch WOOL PRICE WATCH Change

06-Jun

30-May

Last Year

Coarse Xbred Indic.

+10

4.26

4.16

Fine Xbred Indicator

4.97

4.93

4.99

Lamb Indicator

+10

4.99

4.89

5.12

8.57

8.82

Cattle prices lift as competition heats up

Indicators in NZ$

Farmgate prices for cattle have continued to head higher over the last two weeks in both islands. This lift was driven by local procurement issues rather than market forces as US imported beef prices continue to drop. Despite the NZ dollar dropping in value by US5c in the last 4 weeks, US beef prices in NZ dollar terms have still declined slightly. Procurement competition continues to run hot in the North Island with companies paying a higher than usual proportion of market returns back to the farmgate. The margin between export value and farmgate price in the North Island is around 9% below the 5yr average level for this time of year, and 33% below last year. In the South Island procurement pressure has just started to heat up with the cow kill now dropping. Company margins in the South Island still above normal but are dropping.

Higher US beef production & stocks US beef production has been running at high levels with April production up 7% year on year and slaughter up 6%. This has been a significant factor in an increase in beef in cold storage in the US in April. So has relatively sluggish domestic demand for beef. The USDA’s latest cold storage report shows that meat in storage in the US has increased 5.4% compared to last April, which included a 3% rise in processing beef in storage. Beef stocks typically decline at this stage of the season but not this year. This will continue to limit US imported beef prices in the short term.

LAMB Lamb margins much healthier than last year While meat company margins for beef are declining, the opposite is true for lamb margins. Steady to firming overseas market prices and the lower dollar have had a positive impact on export values for lamb of the last 4 weeks. This has seen the margin between export value and farmgate price improve despite farmgate lamb prices lifting by around 20c/kg. Overall margins look much healthier than this time last year which is positive for the price outlook into spring.

Positive signs for lamb pricing in 2013/14 UK demand holding its own - Demand in the UK appears to have remained strong over the last few months despite more supplies in the market (due to higher domestic production, more imports and less exports). The latest data on UK retail lamb purchases show lamb purchases were up 21% for the 3 months to mid-May. Import volumes also remain up year on year. While per kg prices at both retail level and for NZ exports to the UK have remained low in recent months, NZ exporters have reported some price upside recently. EU economy improving? - According to a recent EBLEX report there is also a bit more confidence in the EU economy with the EU Commission’s economic forecast suggesting that Europe may be beginning to climb out of recession. After negative GDP growth in the EU last year, domestic demand is expected to stabilise this year before returning to growth in 2014. Higher GDP and consumption could bolster demand for more expensive meats like lamb. Lamb supplies to tighten – There is also an expectation that global lamb supplies will tighten in the 2nd half of 2013 and into 2014. Adverse climatic conditions in the UK, Australia and NZ indicate that supplies for export for the remainder of 2013 will be lower. NZ supplies are also likely to be low in 2014 due to a reduced lamb crop.

DAIRY Dairy prices lower but may stabilise soon Oceanic dairy product prices continue to decline from recent highs in US dollar terms. This is particularly the case for the whole and skim milk powders. Milk powder prices were back another 5-10% in the last 2 weeks. Production in both Australia and NZ is declining and is running below year ago levels. At current pricing levels, and given product volumes in the pipeline, there is a sense that the market could gain support and prices may soon stabilise.

DAIRY PRICE WATCH

Mid Micron Indic.

Wool Indicator Trends

600

CXI

550

FXI

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

450

Last 2 Wks

Prev. 2 Wks

Last Year

+11

5129

5118

3862

-416

5473

5889

3665

-298

6192

6490

3600

+50

5723

5673

4713

Dairy Prices Trends

7,000

SMP But.

6,000

500

Change

WMP Ched.

5,000

400

4,000

350 300 Jun

Aug

Oct

Dec

Feb

3,000

Apr

Jun

Coarse Xbred Indicator

600

Aug

500

Dec

Feb

Apr

Whole Milk Powder Price (NZ$)

7,000 Last Year This Year

Oct

Last Year

6,000

This Year

5,000 400

4,000

300 Mar

Apr

May

Jun

Jul

Aug

30-May

Last Year

Overseas Price Indicators Indicators in US$/kg Fine Xbred Indicator

06-Jun

n/c

3.38

3.26

-6

3.94

4.00

3.91

-1

3.96

3.97

4.01

6.80

6.92

Lamb Indicator Mid Micron Indicator

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

Wool Indicator in US$

550

CXI

500

Apr

May

Jun

Jul

Aug

Overseas Price Indicators

Change

Coarse Xbred Indicator

3,000 Mar

Change

Last 2 Wks

Prev. 2 Wks

Last Year

-50

4100

4150

2950

-400

4375

4775

2800

-313

4950

5263

2750

-25

4575

4600

3600

Dairy Prices in US$/Tonne

FXI

SMP But

5,500

450

WMP Ched

4,500

400 350

3,500

300 2,500

250 Jun

Aug

Oct

Dec

Feb

Jun

Apr

Coarse Xbred Indictor in US$ 500 Last Year This Year

450 400 350 300 250 Mar

Apr

May

Jun

Jul

Aug

6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 Mar

CURRENCY WATCH vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year

0.90

0.799

0.809

0.841

0.764

Euro

0.604

0.621

0.645

0.610

UK pound

0.512

0.531

0.544

0.493

0.75

Aus dollar

0.836

0.837

0.833

0.775

Japan yen

77.71

81.77

84.60

60.70

0.70 Mar

0.66 0.62

Last Year This Year

0.58

Mar

Apr

May

Jun

Jul

Aug

Oct

Dec

Feb

Apr

Whole Milk Powder Price in US$/T Last Year This Year

Apr

May

Jun

Jul

US Dollar

Aug

Last Year

0.85

US dollar

Euro

Aug

This Year

0.80

UK 0.58 0.56 0.54 0.52 0.50 0.48 0.46 Mar

Apr

May

Jun

Jul

Aug

Pound Last Year This Year

Apr

May

Jun

Jul

Aug

With the support of our award-winning Agri Managers, we can provide you with the knowledge and expertise you need to help your agri business grow. And with access to local product and sector specialists, plus their contacts in local communities and industry bodies, our Agri Managers can introduce you to the people that can help your business succeed. To contact your local Agri Manager call 0800 269 787.

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Rural News // june 18, 2013

20 agribusiness

francis wolfgram Finance Matters

NZ Dairy Market Product

Auction 04/06/13

1 Mth Ago

3 Mths Change in Ago 2013

NZD/Tonne

Whole Milk Powder(WMP)

$5,789

-19.0%

29.6%

45.2%

Skim Milk Powder(SMP)

$5,192

-15.5%

21.4%

27.3%

Butter Milk Powder(BMP)

5,498

Cheese

$6,080

Trade Weighted Index (GDTTWI)

5,540

-5.1% 3.4%

-14.7%

19.9% 35.4%

25.3%

22.3% 33.9%

33.9%

US Agricultural Commodity Prices Price This Price Last Change Issue Issue

Commodity

Units

Live Cattle

USD/Kg

$2.629

0.000%

Feeder Cattle

USD/Kg

$3.166

$3.187

-0.636%

Lean Hogs

USD/Kg

$2.121

$2.057

$3.108%

Greasy Wool

USD/Kg

$10.75

0.000%

Corn

USD/ Bushel

$5.54

$6.573

-15.709%

Wheat

USD/ Bushel

$6.928

$6.975

-0.681%

The GDT dairy auction on June 4 showed another broad-based decline for dairy prices. However, prices remain strongly up for the year and recent kiwi dollar declines will hand back some loses to overall returns. Even when looking at the three month changes, all the major dairy commodities we cover, including the trade weighted index, are up – with 20% plus increases across the board. So where to from here for dairy prices? Assuming no extreme weather patterns or other factors, prices are expected to remain volatile, as they come off the recent highs and find equilibrium. International dairy prices are expected to average above recent cycle highs until 2014, when a supply response from improved margins is expected from the major exporting countries. ANZ have forecast Fonterra’s milk price for 2013-14 will be around the $6.80 per MS mark, with positive upside going forward.

Corn has fallen sharply over the last fortnight as the price roller coaster ride continues to reflect volatile weather conditions. Extremely wet conditions have given way to drier weather and the speculation this will help improve planting conditions – outlining how vital supply concerns are to US agricultural commodity prices. Wheat is also down (but not nearly as sharply as corn) with concerns over the impact of the discovery of unapproved genetically modified plants in Oregon will have on US wheat exports. Cattle prices were flat over the last two weeks as record prices at the supermarket halt buyers. This indicates that wholesale livestock prices are fully priced at the moment, as the gap between beef and pork prices at the supermarket continues to widen.

rural news agri shares index Code

Company

Prices as at 11/06/2013

Prices as at 28/05/2013

Change

Change in 2013

ALF

Allied Farmers

$0.022

$0.018

22.22%

-26.67%

ATM

A2 Corporation

$0.660

$0.670

-1.49%

22.22%

DGL

Delegat’s Group

$4.000

0.00%

36.05%

HNZ

Heartland Bank

$0.83

$0.79

5.06%

22.06%

FSF

Fonterra Shareholders Fund

$7.270

$7.610

-4.47%

2.64%

FFW

Foley Family Wines

$1.300

$1.270

2.36%

8.33%

LIC

Livestock Improvement Corp.

$5.90

$5.80

1.72%

9.26%

PGW

PGG Wrightson

$0.290

$0.320

-9.38%

-36.96%

SAN

Sanford Limited

$4.570

$4.640

-1.51%

7.53%

SEK

Seeka Kiwifruit Industries

$1.850

$1.840

0.54%

105.56%

TEN

Tenon Limited

$1.100

$0.860

27.91%

32.53%

WEL

Wool Equities

$0.120

0.00%

9.09%

TUR

Turners & Growers

$1.600

0.00%

-3.03%

RNAI

Index Total

29.512

29.538

-0.09%

13.19%

Tenon Limited, the forestry and wood products company, had the largest rise of 28% over the fortnight – due to higher forecast earnings due to the pickup in the US housing market. Allied Farmers also had a sharp price rise up 22%. The biggest fall was PGG Wrightson, down over 9%. There was a large drop on May 30 when it was announced managing director George Gould would step down on the August 31. Other significant movers were the Fonterra Shareholders Fund down 4.47% and Heartland Bank up 5.06%. This table represents a selection of shares linked to New Zealand’s rural sector and is in no way a recommendation to buy or sell any share. You should seek the advice of a trusted financial advisor before entering into any sharemarket investment.

Rural News // june 18, 2013

agribusiness 21

Fresh NZ milk goes online in China su d es h k i ssu n sudeshk@ruralnews.co.nz

CHINESE CONSUMERS can now order online a breakfast of New Zealand fresh milk and Weet-Bix. Two-litre bottles of milk are pre-sold and air freighted to 1000 consumers in Shanghai every Monday from Auckland and sold at $26 each. Sanitarium Weet-Bix has now been cleared by Chinese customs for distribution in Shanghai. The breakfast staples are among products piloted on NZ Pure Shop, on online retailer selling New Zealand products via Tmall, a Chinese shopping website. Other products on trial include wine, honey, scampi and one brand of infant formula. NZ Pure Shop chairman Aldo Miccio says the trial is working well and he expects sales to soar once the shop is launched in China later this year. “We are trying out our systems for different product groups and so far the results are pleasing,” he told Rural News. The company is also talking to New Zealand fruit and vegetable exporters and meat companies and they are expected to join the shopping website within two months. Marketing will start in China in November following the launch of an

NZ Pure Shop in Shanghai. Miccio hopes to have 100 New Zealand companies selling up to 500 products by then. At the launch of NZ Pure Shop in Auckland earlier this month, Miccio spoke of the growing demand for authentic New Zealand products. A key element of trading via NZ Pure Shop is that products must be made and assembled in New Zealand. Miccio says it’s important to retain our brand integrity. “All New Zealand businesses and organisations have a collective responsibility to uphold the brand values of our country. NZ Pure Shop on Tmall.com is only for verified Kiwi-made products, and we have worked hard to ensure that from its launch, NZ Pure Shop reinforces the strong environmental, quality and lifestyle brand values that our country has.” In recent years Chinese consumers have been increasingly turning to safe and quality New Zealand products, Miccio says. “Chinese consumers want the same products consumers buy in our supermarkets here. They also want to know products labelled are actually from New Zealand.” Tmall, launched in 2008, has 180 million registered users and promotes 70,000 brands

from 50,000 merchants. NZ Pure Shop has signed a distribution deal with Shanghai Wai’gao’qiao Xi’bei Bonded Logistics Co. Ltd. Miccio says the deal eases the passage of products through NZ Pure Shop. “Businesses can always attempt to export to China themselves, but China’s regulations and processes can be

extremely complicated. We are trying to make it easier for New Zealand exporters by providing a trusted e-commerce platform visible to 180 million Chinese consumers and partnering with established logistics partners.” NZ Pure Shop is the brainchild of Plaxo Capital Group, owned by entrepreneurs York Zhang and Paul Gerald Hu. It was

launched by Trade Minister Tim Groser in Auckland earlier this month. Groser talked about the massive opportunity for New Zealand in China and the importance of e-commerce for New Zealand’s products. “Trade with China has tripled since the signing of the FTA, and now the big change for trade in China is the internet.”

Tag •

Tag cattle and deer with a NAIT approved RFID tag before they are six months old, or before their ﬁrst oﬀ farm movement

•

Cattle born before 1 July 2012 and deer born before 1 March 2013 have a three year grace period in which to be tagged, unless they are being moved oﬀ farm

•

White tags are for cattle and orange tags are for deer

To ﬁnd out more go to www.nait.co.nz or call NAIT on 0800 624 843

Drought lingers THE HAWKE’S Bay drought committee says the region’s farmers face tough times as the aftermath of this year’s drought continues to bite. The committee includes representatives of the region’s councils, Federated Farmers, Ministry for Primary Industries, the East Coast Rural Support Trust, the agribusiness sector – including banks -- and the sheep and beef, dairy and horticultural sector. Chairman Fenton Wilson says the region has issues that will compound over winter and into spring. “It’s going to be an issue for a whole lot of guys lined up either at saleyards or on the phone saying ‘I’ve got grass and money; can I have some?’ We estimate at least 5% of replacement stock have been killed in Hawke’s Bay, if not more. Replacement hoggets have been slaughtered, cows have gone.” Wilson say, until the latest cold snap conditions for grass growth had been excellent with soil temperatures about 12oC, good rain and otherwise mild conditions. Mike Barham from Rural Support Trust agrees the real impact of the drought will be seen later this year. “Now is the time farmers must ensure they have all their planning complete as we head into colder winter weather.” Barham says everyone has pitched in to support the organisation and Hawke’s Bay farmers throughout this drought, which has been fantastic. – Peter Burke

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Rural News // june 18, 2013

22 opinion editorial

edna

Under the (Te) radar THE AHUWHENUA Trophy was recently presented to Tarawera Station – a large Maori sheep and beef farm (about 30,000 stock) on the Napier Taupo highway. The station was one of three finalists for this prestigious award. All three were sizable highperforming Maori enterprises, sustainable and with first-class governance structures and longterm plans that would be the envy of any mainstream farm. About 850 people packed into the Napier Events Centre to see the trophy presented by Deputy Prime Minister Bill English and Maori Affairs minister Dr Pita Sharples. It was a brilliantly run event and competition – slick, entertaining and a great celebration of success. However, by and large, the success celebrated in Napier has gone unnoticed by the great unwashed. Mainstream news media ignored the field days run by the three finalists. Rural News was the only newspaper reporting on all three. In some ways you can excuse New Zealanders for having a negative view of Maori, especially given that most news media are either too lazy or so obsessed with crime and politics that they can’t get their heads around Maori being successful. As Pita Sharples rightly points out, news media are obsessed with telling negative stories about Maori, but never cover the positives. The Ahuwhenua Trophy has been contested for 80 years and has been won by small family enterprises, and large trusts and incorporations. The winners of this trophy are not just the best Maori farmers, they are up with and surpassing many pakeha farmers and corporate farms. Maori are a powerhouse of the agribusiness economy. Without them our export returns would not look so flash. It’s said that about 10% of the milk and 15% of sheep and beef exports are produced on Maori farms. Through the Maori dairy company Miraka, in the central North Island, they are into further processing of dairy products. But this in some ways is just the beginning. There are thousands of hectares of Maori land either undeveloped or underperforming and when that comes on-stream the numbers will change dramatically. Noticing, rather than ignoring, Maori agriculture is a no-brainer.

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

“Well, here we are home again – where would we go for our annual holiday if it wasn’t for Fieldays?”

the hound

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

Putting the boot in

Hamilton’s sister cities?

Smelly hippies

Turd polishing

YOUR OLD mate notes that since ACC hasn’t released any more private information about its claimants for a while, it is now focussing on the really important things – such as gumboot injuries. According to a press release from ACC’s John Beaglehole, there are huge dangers lurking in the traditional, winter footwear of Kiwi farmers – the humble gumboot. Apparently, 160 gumboot-related ACC claims were made last winter. These injuries happened while people were putting on, taking off, cleaning, throwing, walking, running and jumping in their gumboots.

THE HOUND was amused by a recent article from the British Daily Telegraph, which reports that the longsuffering inhabitants of Bland in Australia are hoping to turn a negative into a positive by establishing links with Dull in Scotland and Boring in the US. Meanwhile, a mate of yours truly opined – rather unkindly – after enduring another year at Fieldays that Hamilton would make an appropriate sister city for all three unfortunately named towns as he claims the foggy city is bland, dull and boring.

THE HOUND could not help but giggle at one of the directives given to attendees at the recent Green Party annual conference, held in Christchurch early June. While leader Russel Norman spent most of his headline speech personally attacking PM John Key and claiming “something was rotten in the Beehive”, a mate of the canine crusader reckons any rotten smell may well have been somewhat closer to home. According to instructions given out at the conference, Green Party delegates were informed it was to be a ‘fragrance-free’ affair’.

YOUR OLD mate hears that the imminent departure of Transpower chief Patrick Strange has not drawn too many tears from farmers around the country. Strange and the national grid operator have not made too many friends in the rural sector with its plans to dictate how and what farmers can do under, near and around pylons on their land. As one incredulous landowner told the Hound: “You can’t polish a turd no matter how much spin their PR department puts on it!”

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A load of crap IT APPEARS to this old mutt that the old axiom “lies, dams lies and statistics” should be changed to “lies, damn lies and Green Party propaganda.” This comes in the wake of recent unsubstantiated and reckless claims made by the Greens, and run by without question by TV3’s Campbell Live, about the rehabilitation of farmland in Taranaki and the dairy industry. The Hound is sick and tired of the incessant and constant denigrating of the farming sector by the fruit loops and the lies they spin to uniformed media such as Campbell Live to spread their poison.

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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 // june 18, 2013

opinion 23

Farmers doing it tough around the world NEW ZEALAND farmers are not alone in feeling the pinch. In March, farmers at the Australian Holstein Conference were outnumbered by industry personnel. In the UK, the price of milk has increased 1.9% but costs of feed are up 17%. In South Africa, the discussion at the Large Herds Conference in KwaZulu Natal, in June, was about milk price not covering costs of production. Two thousand farmers supply 300 processors which supply four supermarket chains. The farmer is at the bottom… As in New Zealand, the big concern is the viability of the industry and the misunderstanding about where the profits lie. Max du Preez (a former journalist in South Africa and currently a professor of communication studies at the University of North West and a fellow of the Centre for Leadership Ethics in Africa at the University of Fort Hare), gave the closing address at the

Large Herds Conference. He suggested “it is time for organised agriculture to employ bold and competent reputation managers to change the image of especially white farmers from that of ‘land thieves’ to food providers and employers.” Perhaps it is time for New Zealand to do so as well. News that the milk price has been forecast to be higher next season than for 2012/13 was met with urban concerns about supermarket prices rather than the bonus for the economy – and although the increase was something of a relief after last season’s struggle, farmers are still feeling pressured. Drought has had a significant impact this year on top of a couple of years of low payout for milk solids and decreasing schedule prices for meat. In addition there are increasing difficulties in operating on-farm because of both escalating regulations and indecision

about the Resource Management Act (RMA). At the deer industry conference last month, Chris Kelly, retiring chief executive of Landcorp, indicated that current estimates on return on invested capital for New Zealand’s biggest farming enterprise (commanding 30% reduction in price of inputs because of scale of operation) are 2-3% for sheep, beef and venison, and 4% for dairy. Although it is true the assets are owned by the farmer, these assets are realised only when sold – and it is difficult to sell a business when it is returning less than interest from a bank – unless the purchaser can see a way to ‘grow the

business’. The fundamental problem is that the price of food does not reflect the costs of production. In the past some costs have been internalised or avoided by impacts on the environments. Now that value is being placed on the environment by society through regulation, it should be reflected in the price of food. And farmers who produce food with least impact on the environment (kg of product per use of nitrogen, phosphorus and carbon, for instance) should be rewarded, possibly through the meat and dairy companies. Perhaps it is time for a Royal Commission on where the profits are in the supply chain. This could be followed by an extension and publicity campaign throughout the country showing that New Zealand farmers are world leaders in sustainable production whilst making a decent living. By clearing up the

misunderstandings, and improving agricultural returns, the farming sector would blossom in affording new technologies to assist with environmental protection, and more people in employment.

New Zealand is still seen by young South Africans as a place where it is possible to achieve farm ownership through the traditional path of sharemilking. Young New Zealanders should be able to

see the prospects as well. • Jacqueline Rowarth is Professor of Agribusiness, The University of Waikato. Her attendance at the South African Large Herds Conference was supported by LIC.

As New Zealand sheep producers can attest, low prices are making farming a tough proposition.

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Rural News // june 18, 2013

24 opinion

Higher productivity does not mean more profit THE WORD ‘productivity’ seems to be worshipped by many farming leaders, processing companies, government officials, politicians and commentators – as if it was the holy grail of farming.

“If only farmers would use this new grass, crop, spray, drench, fertiliser or gadget it would increase productivity. If farmers increase productivity by 1% per year it will mean a $4 billion gain in exports.

Higher farm productivity means greater profits for farmers.” The only possible response to statements like those is “yeah, nah!” Meaning “yeah” it might, but “nah” don’t hold your

breath. There are two problems in using the word productivity. The first is that many people say ‘productivity’ when they really want ‘production’. Processing companies want

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more production because that is how they make money. Higher throughput means better use of processing capacity, lower unit costs and more product to sell. The government and the MPI want more product sold too, because that means higher overseas earnings for the country as a whole. So when these organisations talk glibly about increasing farm productivity they are really wanting farmers to strive for more production. But more production from the same inputs is not the only way of increasing productivity. Farmers who produce the same amount using fewer inputs also increase their productivity, and in my experience that is far safer and more profitable. Why? Because most farmers have stretched their resources (including themselves and their staff) to the max already and changing actions in one area to increase production may have unintended consequences in another. There are many variables in farming that farmers are unable to control: weather, interest rates, exchange rates, regulations, availability of supplementary feeds, schedule prices, payout, etc. It makes sense to build flexibility into their production systems to manage for the unknowns. If the season proves very dry, wet or cold, farmers producing to the max may have to rely heavily on expensive bought-in feeds. Their productivity in terms of energy inputs and product outputs will remain about the

same, but their profits will tumble. On the other hand, if they are not stocked to the hilt, they and their stock will survive the season better and achieve better profitability. What if the season is a very good one? Will the farmer with surplus feed lose out? No, of course not! There are very good ways of turning surplus pasture into cash. You just need to discover what options will give the best profit in your situation. There are now business management tools available that allow you to do exactly that for optimising herd size, predicting feed availability and testing a range of management options accurately, all with ultimate profit firmly in mind. Trying to make the same decisions based on higher production will likely lead you astray. So my message is to ignore those who argue that their idea of increased productivity is the answer to farmers’ and the nation’s problems. ‘Productivity’ has become an airy-fairy concept that belongs in strategy documents, and should stay there. Sanity demands a more rational and practical focus for farmers – profitability. As we have shown over the past decade or so, analysing your management options in terms of cents profit/kgDM eaten by stock will certainly put you on the right track. • Peter Floyd is the managing director of Profit Focused Farming www. profitfocusedfarming.co.nz Tel. 0800 433 376 or 027 596 8796

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Rural News // june 18, 2013

management 25

Rapid payback with water meters ga re t h g i l lat t

LIGHT EWES, likely due to the recent drought, deserve all the help they can get prior to lambing this year, says Merial. Low feed covers following a difficult summer and autumn mean pregnant ewes are currently more susceptible to parasites than usual in some regions, and faecal eggs counts (FEC) are showing the results. Merial relays veterinary comments endorsing that, such as those Anthony Oswald, Taihape Veterinary Services. “There have been some high FEC’s in those ewes under nutritional stress, and we expect we’ll be doing a lot of counts over the next few months, especially around scanning time, to help farmers identify mobs with high worm burdens,” Oswald told Merial. Merial says both he and Gisborne vet John Meban, Eastland Veterinary Services, stress the situation varies widely between districts, and advise careful monitoring particularly for multiple bearing ewes with a condition score of 2.5 or less. Broader use of longacting parasite treatments such as BIONIC capsules may be warranted for these animals this year, but as with any drench decision, the first step is parasite risk assessment.

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also priorities.” Justin Hurst, technical services and regulatory affairs manager for Merial Ancare, says there’s a narrow window in which to set up flocks for lambing this year. “In general… seriously

● Prevent stock going short. ● Save water and electricity. ● Inexpensive and quick to install. ● Cut time to find leaks.

It is also important to remember when long acting products are used steps must be taken to mitigate selection pressure for resistance. Meban says this may mean leaving some animals untreated or following treated animals with untreated to create refugia or mop up resistant worms. “There are several decisions to be made depending on feed availability, ewe age, ewe condition score, number of lambs on board and stocking rates. Most importantly drench choice should be based on knowing the drench resistance status for your property. “For some of our farmers, who destocked early, there may well now be an opportunity to try and recover body weight in light ewes post-scanning. Others have a long way to go before they’re out of the woods.” Oswald says depending on feed situation and ewe condition, he and his farmer clients will be looking at using long acting anthelmintics in some situations,

contemplate those twinbearing ewes that are still on the farm; evaluate the environment in terms of the need to manage parasites to maintain productivity in those animals and act accordingly in consultation with [your] vet.”

Less worm challenge during the drought doesn’t mean there won’t be worms there during winter, he adds. “Worms come back with a vengeance in New Zealand pastoral conditions and systems.”

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to provide parasite protection 6-8 weeks ahead of lambing, instead of the standard 3-4 weeks. “We’re all aware of the

issues long-acting products have in relation to drench resistance, but in a season like this, ewe productivity and welfare are

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Rural News // june 18, 2013

26 management

Cutting fodder beet costs p e te r bu r k e peterb@ruralnews.co.nz

THE LINKLATER brothers, Scott and Paul, have combined their skills to develop a more cost-effective way of growing fodder beet – strip tillage. The pair are involved in

a Beef + Lamb NZ scheme to support innovative farmers trying new ideas to ultimately benefit all farmers. Beneficiaries of the scheme are required to hold a field day to show their results. Linklaters’ day was part of a recent B+LNZ/Massey

Engineer and farmer: Paul and Scott Linklater with a fodder beet grown in their strip tillage.

science day. The strip tillage trial is on 5.4ha on the outskirts of Palmerston North. Scott runs four properties owned by Linkfarms, while Paul is the engineer and contractor who runs Agrilink Contracting and contracts to Scott

and other farmers in the region. The objective of the strip tillage trial, says Scott, is to grow the fodder beet as efficiently as possible, but with reduced costs. “Costing is a big thing; currently it’s costing about $2200/ ha to grow and we want to cut that down to at least $1500 to $1600 a hectare using strip tillage.” Normally fodder crops such as beet are planted by conventional means – spraying out the entire paddock, waiting until it wilts then cultivating it. Paul Linklater says a paddock will be harrowed and worked down and then fertiliser spread before the seed is sown. Conventionally, a whole paddock will be out of use from the minute it’s sprayed. But with strip tillage it’s differ-

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ent. Firstly, only the areas being planted are sprayed – about 40% of the paddock – leaving the remainder to be grazed until the grass sprayed is dead and ready for planting. Strip tillage is not a new concept, says Scott Linklater. It is used in Hawkes Bay to grow maize and squash. But there are a couple of differences. The spacing the Linklaters are using is 500mm between rows, whereas for maize it’s about 750mm and at least 1m for squash. They are able to do this because of Paul’s innovation in designing and building his own strip tillage machine. “I made the first machine last winter, then modified it and it’s turned into a bottomless pit to some degree – in terms of money – but we are getting there. We now have a

Field day crowd: The Linklaters explain their system.

machine that works well and there are still areas I want to modify. “Most of the machines you can buy off the shelf are ground driven, which means they have to be pulled through the ground. The beauty of the machine we have built is that it’s power driven off the tractor PTO so that it can smash up the heavier soils.” Further, it does the entire operation in one pass. It cultivates a narrow

area for seed, puts in the necessary fertiliser and plants the seed in a matter of seconds. A conventional operation would take about four passes. His system uses GPS and can operate to an accuracy of 2cm. Paul Linklater says by making just one pass the odds of getting better seed germination are greater. He says the single pass system helps retain the moisture in the soil, destroys the structure of

Rural News // june 18, 2013

management 27

with strips the soil and can lead to less leaching of N into waterways. Less soil disturbance also reduces the risk or plants being effectively ‘sandblasted’ by soil whipped up by the wind. But this trial is essentially about saving money in a variety of ways. Already mentioned is the fact that it allows 60% of a paddock to be grazed for much longer. The other advantage, says Scott Linklater, is that because 60% of the paddock hasn’t been cultivated, the problem of pugging is reduced. “It’s exciting. It’s the first time we’ve grown it in a full-blown drought and it has still gown just over 20 tonnes to the hectare. Next year there are more things coming up such as reducing chemical costs and that’s going to improve the efficiency.

Reboot needed says Minister

Proof of the pudding: sheep grazing on a strip-sown crop.

We are reducing fertiliser costs by putting it in with the seed and not broadcasting it. This also ensures early plant establishment with fertiliser being readily available to the plant.” Linkfarms (586ha on four properties in Manawatu) does cropping, and finishes lambs, cattle and deer. It is part of the

Wagyu beef operation led by Firstlight foods. They use beet as part of this operation and this past summer it has paid off. “We’ve been growing fodder beet for four years. We know it’s a consistently growing crop [provided] you’re onto it with your timing and everything,” says Scott. “So hopefully with Paul’s strip

* Based on MIA Market Data 1993-2012

tillage machine we are making it more economical to an average farmer that he can grow this crop and get a reliable yield.” Scott already has plans for next year He’s considering planting beetroot in every second row of fodder beet. He says it has high protein content and believes the two crops can complement each other.

THE FUTURE of farming depends on programmes like FarmIQ, Minister for Primary Industries Nathan Guy told a recent field day in the Wairarapa. “It’s about measurement, management and ultimately making changes in behaviour. We need to reboot our rural communities, to make sure we have a viable industry,” he told the crowd at Taratahi Agricultural Training Centre’s sheep and beef farm, Mangarata. Taratahi sheep and beef manager, Paul Crick said Taratahi’s approach is “a little bit different from most”, focussing on the maternal productivity of sheep. Nathan Guy “We can’t necessarily finish better financial returns for everyone.” all animals at Mangarata because As soon as DNA testing sheep is comof our dry summers, so we want all the ewes to have multiples and wean their mercially viable he says they’ll probably build that into the breeding programme own bodyweight in lambs.” Data collection across mobs is a pri- too. Mangarata is one of twelve core ority. “Having EID technology enables farms involved in the seven-year, $151m both the breeder and finisher to build PGP-funded, plate to pasture project. longer lasting relationships. The ulti- The industry partners are Landcorp, mate will be to work with finishers who Silver Fern Farms, and Tru-Test, conare also involved with FarmIQ giving tributing 61% of the funds.

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Rural News // june 18, 2013

28 management

New drenches a tool to save old pa m ti pa

REGULAR USE of new actives in the sheep drench cycle will double the life of your old drenches, veterinarian and Wormwise expert Richard Lee says. “It is in your financial interests to eke out

the efficacy of the existing products for as long as possible because eventually you will have to bite the bullet and go the expensive way,” he told a recent Beef+Lamb Wormwise workshop at Ahuroa, north of Auckland. Modelling by AgResearch anthelmin-

tic resistance expert David Leathwick suggests one of the new actives should be used every fifth time lambs are drenched to stave off the onset of resistance, notes Lee. While the new actives are about three times as much again as topline older products, such an

approach will prove more cost effective in the longrun, he says. To test whether a worm population on farm is resistant to certain drenches, do a faecal egg count (FEC) across a known population of sheep, then drench, and FEC the same animals

again 10 days later. If the egg count isn’t zero, there’s some resistance to the active(s) used. “If you do this drench check early in the season and that’s the drench you’ve chosen for the season, you’ve got to change the drench. “You’ve got to go to an

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effective one.” Leaving a few animals untreated ensures some susceptible parasites survive a drench round, “in refuge”, which is a good thing as it helps keep the population susceptible to the product used. However, these susceptible parasites still mount a challenge and increase larval contamination of pasture, so the emphasis is on only leaving a few untreated, and they shouldn’t be lambs as the production losses are too costly, says Lee. Use ewes or rams. There’s considerable confusion about refugia, he acknowledges. “I have heard about guys stretching out the drench interval of lambs for 5, 6 or 7 weeks or leaving 10% or 50% undrenched because they believe that is refugia. It is refugia, but it is also counterproductive to the animal and the wallet.” Sustainable parasite management is so complicated outside advice should be sought, he believes, but that needs to

be adapted to your aspirations, policy mix, farm and infrastructure. Young farmers in particular have to get the right balance and should lean towards less drench because “it’s got to be sustainable”. Older farmers, on the other hand, might have a different perspective. “It is important you find out that balance for yourself… nobody in any service industry tells you where you should be.” If grazing other people’s stock you need to be in charge of drench decisions as “their issues” will stick to your property, he warns. Using an ineffective product as a quarantine drench is highly dangerous and where triple combinations used to be advised, now, for sheep, it should be a new active, he believes. The more lambs on a farm, and the longer they’re there, the more parasites likely. Conversely, high growth rates mean lambs are gone early and the burden never builds.

Common principles While the pan-industry group of people that make up Wormwise will sometimes differ in opinion on aspects of worm management, there are certain principles all agree on, say Lee, a founder member of the group. • Well-fed animals are less susceptible. • Older animals are less susceptible. • Most of the worms are on the ground most of the year. • Drenches are only “one small tool in the toolbox”. • Drenches are a finite resource, sustainable use is essential. • Once on a farm, drench resistance is permanent. • Healthy animals harbour worms and always will: you will never get rid of them but need to minimise effects.

Rural News // june 18, 2013

animal health 29

Dog wintering column sends emails flying The response to my last column was staggering. I have never had so many emails from one article. It was heartening to see people not only value farm dogs but go to great lengths to care for them. Thank you. It seems coats at night are favoured by many and respondents remarked condition and work performance improved no end. I noticed some very well made, reasonably priced dog coats in one of the stock firms’ stores last week and if I couldn’t sew I would certainly have invested in some to have on hand. It was surprising the number of dog owners who have lined walls, roof and floor of dog kennels with pink batts, placing them between the iron and ply. All mentioned it made a huge difference with warmth in winter and coolness in summer. Apparently dogs that were once a bit stiff in the mornings now have a spring in their step. One Southland couple made their dog kennels cosy with some leftover Expol (polystyrene underfloor insulation) which they placed between the old floor and new ply. Wind no longer whistles through gaps. Several farmers recommended putting kennel doors away from prevailing winds; another had nailed sacking in the doorway like a curtain. I imagine this would work for old dogs but one that was young and easily bored would have a ball shredding it! Similarly young dogs might be a problem with another bright idea to come in: “Cheap rubber doormats… cut in half and nailed to the top of the kennel opening, provide a lot more warmth in the kennel and stops those evil draughts,” wrote Liz. It seems bedding for working dogs has been well tested. Wet sacks, car-

pets and similar bedding got short shift but thick rubber mats had the thumb’s up from a couple of farmers. “As far as bedding goes for my dog’s I’ve found that foam mat bedroll stuff used for camping is very good. I’ve spent many a night sleeping on it while on hunting trips and it keeps you warm even when wet. I figured if it’s good enough for me it’s good enough for my dogs. Also it’s cheap and easy to put in the kennels,” wrote one. Two writers brought up the benefits of raised dog beds. You see them in pet shops: a frame with thick waterproof fabric stretched across. While great for an inside dog or one in a shed they’re unlikely fit into a kennel. Other options mentioned were, in my opinion, suitable for pet dogs but

unrealistic for the working dog’s lifestyle and accommodation. To sum up, for winter make sure kennels are waterproof and draft free, hose mud off before retiring dogs for the day, and feed them considerably more quality food to cover ribs with a layer of fat for winter warmth. Don’t feed frozen food, and you could even do what a friend of mine does if you want to do a little something extra for your dogs this winter. He puts the evening’s ration of Mighty Mix in a bucket and just covers it with hot water. By the time he gets to the kennels it’s cooled slightly and he ladles portions into each bowl. The dogs just love the warm sloppy brew, as we do a hot hearty winter stew. • Anna Holland is teaching people dog training. For more information www. annaholland.co.nz or Ph 07) 217 0101 or annaholland@xtra.co.nz • Letter responses: p32

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2013 RURAL NEWS SURVEY OF TREATMENTS FOR INTERNAL PARASITES OF PRE-LAMB EWES Company

Available through

Active Ingredient (s)

Concentration

Ingredient Dose Rate

Formulated Dose Rate

W’Holding Safety Period (Meat) Margin

Ovicidal

Exodus Long Acting Injection

Merial Ancare

Veterinary Clinics

Moxidectin

20g/L

1mg/kg

1ml/20kg

91 days

mature immature

Genesis Injection

Merial Ancare

Veterinary Clinics

Abamectin

10mg/mL

0.2mg/kg

1mL/50kg

28 days

mature immature

Ivomec Injection

Merial Ancare

Veterinary Clinics

Ivermectin

10g/L

0.2mg/kg

1mL/50kg

35 days

10x dose rate

mature immature

Dectomax Injection

Zoetis

Veterinary Clinics

Doramectin

10mg/mL

0.2mg/kg

1mL/50kg b.w.

35 days

15x dose rate

mature immature

Cydectin Injection

Zoetis

All outlets

Moxidectin

10g/L

0.2mg/kg

1mL/50kg

28 days

10x dose rate

mature immature

Cydectin Long Acting Injection for Sheep

Zoetis

All outlets

Moxidectin

20g/L

1mg/kg

1mL/20kg

91 days

5x dose rate

mature immature

Eweguard

Zoetis

All outlets

Moxidectin Plus 6 in 1 vaccine

5g/L

0.2mg/kg

1mL/25kg

49 days

10x dose rate

mature immature

MOXAM Sheep

Bayer NZ Ltd

CRT, Farmlands

Moxidectin

2g/L

2mg/ml

1mL/10kg

10 days

10x

mature immature

MOXAM Sel Sheep

Bayer NZ Ltd

CRT, Farmlands

Moxidectin Selenium

2g/L 1mg/ML

2mg/ml

1mL10kg

10 days

10x

mature immature

Concur Sheep Himin

Bayer NZ Ltd

Allied Farmers, CRT, Farmlands

Oxfendazole, Levamisole

22.7g/L, 40g/L

4.5mg/kg, 7.5mg/kg

1mL/5kg

10 days

YES

mature immature

Evolve Sheep Himin

Bayer NZ Ltd

Allied Farmers, CRT, Farmlands

Abamectin, Levamisole, Oxfendazole

1g/L, 40g/L, 22.65g/L

0.2mg/kg, 8mg/kg, 4.53mg/kg

1mL/5kg

21 days

YES

mature immature

Saturn Sheep Himin

Bayer NZ Ltd

Allied Farmers, CRT, Farmlands

Levamisole, Abamectin

40g/L, 1g/L

7.5mg/kg 0.2mg/kg

1mL/5kg

21 days

mature immature

ALLIANCE®

COOPERS

All major retail outlets

Oxfendazole, Levamisole, Abamectin

45.3g/L 80g/L 2g/L

4.53mg/kg 8mg/kg 0.2mg/kg

1mL/10kg

14 days

YES

mature immature

CONVERGE®

COOPERS

All major retail outlets

Levamisole Abamectin

80g/L 2g/L

8mg/kg 0.2mg/kg

1mL/10kg

14 days

mature immature

SCANDA® Available in Plain and Selenised

COOPERS

All major retail outlets

Oxfendazole Levamisole

45.3g/L 80g/L

4.53mg/kg 8mg/kg

1mL/10kg

10 days

YES

mature immature

Bionic Hi Mineral Capsules

Merial Ancare

Veterinary Outlets

Abamectin, 160mg Abamectin, 4.62g Albendazole, Selenium Albendazole, 26mg Selenium, & Cobalt 120mg colbalt per capsule.

20µ Abamectin, 0.5mg Albendazole/kg/day

1 capsule 40-80kg

128 days

3 capsules Yes

mature immature

Extender 100 Capsules

Merial Ancare

Veterinary Outlets

Albendazole

3.85g/capsule

0.5mg/kg/day

1 capsule 35-65kg

Nil

5 capsules Yes

mature immature

Extender SeCo Capsules

Merial Ancare

Veterinary Outlets

Albendazole, Selenium & Cobalt

4.62g Albendazole capsule, 24mg Selenium, 118mg Cobalt

ABZ 0.5mg/day Se 0.24mg/ day, Co 1.18mg/day

1 capsule 40-80kg

Nil

5 capsules Yes

mature immature

Ivomec Maximizer CR Merial Ancare (for adult sheep) Capsules

Veterinary Outlets

Ivermectin

160mg/capsule

20µ/kg/day

1 capsule 40-80kg

126 days

5x capsules

mature immature

Matrix Hi Mineral Oral Drench for Sheep

Merial Ancare

Veterinary Outlets

Abamectin, Oxfendazole, Levamisole

1g/L Abamectin, 22.7g/L Oxfendazole, 40g/L Levamisole, 0.5g/L Selenium & 2.2g/L Cobalt

0.2mg/kg Abamectin, 4.5mg/kg Oxfendazole, 8mg/kg Levamisole

1mL/5kg

14 days

Yes

mature immature

Matrix Minidose

Merial Ancare

Veterinary Outlets

Abamectin, Levamisole, Oxfendazole

2g/L Abamectin, 80g/L Levamisole, 45.4g/L Oxfendazole, 1g/L Selenium, 4.4g/L Cobalt

0.2mg Abamectin, 8mg Levamisole, 4.54mg Oxfendazole/kg

1mL/10kg

14 days

Yes

mature immature

Switch Hi Mineral

Merial Ancare

Veterinary Outlets

Abamectin Levamisole

1g/L Abamectin, 40g/L, Levamisole, 0.2mg Abamectin, 0.5g/L Selenium, 2.2g/L Cobalt 8mg Levamisole/kg

1mL/5kg

14 days

Yes

mature immature

Cydectin Oral Drench Vetdectin Oral Drench

Zoetis

Vets, OTC outlets

Moxidectin

1mg/mL

0.2mg/kg

1mL/5kg

10 days

> 10x dose No rate

mature immature

Startect

Zoetis

Vet Only

Abamectin Derquantel

1mg/mL 10mg/mL

0.2mg/kg 2mg/kg

1mL/5kg

14 days

mature immature

Product

Parasite Maturity

INJECTABLE

ORAL

“I USE BIONIC SHEEP CAPSULES, THEY ARE PERFECT FOR GETTING THE LAMBS OFF THE EWES EARLY.” Ian MathIeson (Manager) hangaWera statIon

“WE GET THE BEST EWE ANd LAMB WEANING WEIGHTS USING BIONIC.” stuart ChIld WaItaKa FarMIng partnershIp ltd te anga KIng CountrY

taInuI group holdIngs ltd

“MY EWES WERE CLEANER ANd HEALTHIER ANd THE LAMBS REACHEd TARGET WEIGHTS FASTER USING BIONIC.”

WaIKato

CraIg WIggIns oueroa statIon haWKes BaY

PROUDLY AVAILABLE FROM YOUR LOCAL VETERINARY CLINIC. Merial is a Sanofi company. MERIAL NZ LTD. LEVEL 3, MERIAL BUILDING, OSTERLEY WAY, MANUKAU CITY, NEW ZEALAND | WWW.MERIALANCARE.CO.NZ | REGISTERED PURSUANT TO THE ACVM ACT 1997 NO A9646 | SEE WWW.NZFSA.GOVT.NZ/ACVM/ FOR REGISTRATION CONDITIONS | NZ-12-BIO-037

MAL-BIO Testimonials 14 x 544mm.indd 1

★★★ ★★★

YES

★★★ ★★★

★★★ ★★★ ★★★1 ★★★1 ★★★

★★★ 1

★★★

★★★ ★★★

★★★ ★★★ ★★★1 ★★★

★★★ ★★★

ND ND

★★★ ND

★★★ ★★★

★★★

ND ND

★★★ ★★★

★★★ ND

ND ND

Trichuris

★★★ ★★★

Bunostomum

★★★ ★★★

TAPEWORMS: (Monziezia)

★★★ ★★★

FLUKES: (Fasciola)

Chabertia

★★★ ★★★

KEY TO SURVEY

MITES (Psorergates ovis)

Oesphagostomum

★★★ ★★★

Dictyocaulus

Trichostrongylus

★★★ ★★★

Cooperia

★★★ ★★★

Nematodirus

★★★ ★★★

Tric. Axei

★★★ ★★★

Ostertagia

★★★ ★★★

Strongyloides

Lungs

BLOW FLY (Lucilla cuprina)

Lge Intestine

Small Intestine

Haemonchus

Abomasum

NASAL BOT Oestrus ovis: (Larvae)

Rural News // june 18, 2013

★ ★ ★ - 95% to 100% efficacy ★ ★ - 75% to 95% efficacy ★ - 50% to 75% efficacy Blank- No registered claim N/S – Information not supplied N/D – No data N/A – Not applicable

COMMENT

★ ★ ★ ND ★★★1

★★★ ★★★ ★★★1

ND ND

★★★ ND

★★★ ★★★

★★★

★★★ ★★★

★★★ ND

★★★ ★★★

ND ND

★★★ ★★★

★★★ ND

★★★ ★★★

★★★

ND ND

★★★ ★★★

★★★

★★★ ★★★

★★★ ND

★★★ ★★★

★★★

★★★ ★★★

5. Levamisole is a short acting drench. Also contains a 5 in 1 vaccine.

Note 8 Also effective against itchmite (Psoregates ovis) Note 3 & 4

★★★ ★★★

★★★ ND

ND ND

★★★ ★★★

★★★ ND

★★★ ★★★

★★★ ND

★★★ ★★★

★★★

Note 3

★★★ ★★★

★★★ ND

ND ND

★★★ ★★★

★★★ ND

★★★ ★★★

★★★ ND

★★★ ★★★

★★★

Note 3

★★★ ★★★

★★★

★★★ ★★★

★★★ ★★★ ★★★

★★★ ★★★

ND ND

★★★ ★★★

ND ND

Contains minerals Cobalt, Copper, Iodine, Selenium, Zinc.

★★★ ★★★

ND ND

★★★ ★★★

Contains minerals Cobalt, Copper, Iodine, Selenium, Zinc.

★★★ ★★★

2 2

★★★ ★★★

2 2

★★★ ★★★ ★★★ ★★★ ★★★ ★★★ ★ ★ ★ 1 ★ ★ ★ 1 ★ ★ ★ 1 ★ ★ ★ 1 ★ ★ ★ 1 ND

ND ND

★★★ ★★★ ★★★ ★★★ ★ ★ ★ 1 ★ ★ ★ 1 ★ ★ ★ 1 ND

★★★ ★★★1 ★★★

★★★ ★★★

ND ND

★★★ ★★★

ND ND

★★★ ★★★

YES

★★★ ★★★

YES

★★★ ★★★

★★★ ND

ND ND

★★★ ★★★

★★★ ND

★★★ ★★★

★★★ ND

★★★ ★★★

★★★

★★★ ★★★

★★★

★★★ ★★★

“WE GET INCREASEd WOOL WEIGHTS ANd STAPLE LENGTHS USING BIONIC CAPSULES.” BYron KIrK laKe ColerIdge statIon CanterBurY

ND ND

★★★

Contains minerals Cobalt, Copper, Iodine, Selenium, Zinc.

Triple combination oral drench for cattle and sheep. Contains Cobalt and Selenium. Dual combination oral drench for cattle and sheep. Contains Cobalt and Selenium.

★★★

YES

3. Additives: contain antigens of 5 clostridial diseases and cheesy gland. Effective against inhibited stages of Haemonchus, Ostertagia and Trichostrongylus.

Note 4 ★★★

★★

2. Also for use in cattle & pigs, effective against itchmite and inhibited L4 stage Ostertagia.

Note 2 & 7

NO Note 2

ND AIP 3

1. Effective against L3 stages.

4. Non-irritant injection, prevents re-infection with Haemonchus contortus and Ostertagia circumcincta for at least 35 days and Trichostrongylus colubriformis for at least 7 days following a single subcutaneous injection. Use in sheep that have been vaccinated against footrot is not recommended.

Note 8 also applies NO

Product Comment (INJECTABLE)

Dual combination oral drench for cattle and sheep. Available in Plain and Selenised.

Note 2

Note 1 Also contains 0.5g/L Selenium 2.2.g/L Cobalt

6. Also available with 1.25mg/ml Selenium 7. 1: Includes inhibited stages and BZresistant parasites. 2: 1st, 2nd & 3rd instars. 3: AIP Aids in Protection. 8. Injection site is high on the neck, at the base of the ear. Prevents reinfection with Haemonchus contortus for 91 days, Ostertagia circumcincta for 112 days and Trichostrongylus colubriformis for 42 days.

Product Comment (ORAL)

1. Aids in control of dags and blowfly strike in the breech area and reduces pasture contamination from worm eggs for at least 100 days. Effective against strains of H.contortus,O. circumcincta and T.colubriformis resistant to benzimidazole, levamisole and morantal drenches and strains of T.axei and N.spathiger resistant to benzimidazole drenches. 1.Effective against L3 stages. Effective against itchmite and keds. 2. Gives continuous protection against all major species of worms for at least 100 days. 1. Efficacy not yet established. 3. Prevents reinfection wth Haemonchus contortus for 35days and Ostertagia circumcincta for 21days The Rural News Pre-Lamb Ewe Internal Parasite Control Survey is compiled from information supplied by animal health companies. Although the information has been checked by our independent animal health advisor, Rural News accepts no responsibility or liability for inaccuracies. The efficacy classifications relate only to where no resistance is present. If a concern exists please contact a veterinarian.

Note 3 Also effective against itchmite (Psoregates ovis) Note 4. Also available with 0.5mg/ml selenium. Effective against adult and immature (L4) stages of sensitive strains of parasites including those resistant to levamisole, benzimadazole, macrocyclic lactones and closantel drenches and combinations of these. 2. Also controls itchmites

★★★

“WITH ONLY ONE CHANCE TO SET THE EWES UP FOR THE YEAR, WE USE BIONIC CAPSULES.” haMIsh neal noKoMaI statIon southland

“BY USING BIONIC WE ENSURE OPTIMAL 2 TOOTH MATING WEIGHTS ANd GET OLd EWES ANd LAMBS ON THE TRUCk FASTER.” Matt totMan rIhIa land CoMpanY taIhape

bionic

f o r 1 0 0 d ay s l o c k d o w n o f a l l m a j o r pa r a s i t e s

11/07/12 3:22 PM

Rural News // june 18, 2013

32 animal health

Assess ewe condition and feed ASSESS PASTURE cover and ewe condition now, and how they’re likely to track through winter, to inform prelamb drench decisions, says Zoetis. “We are really talking about making a decision that will affect ewe health through late winter, and ultimately have an impact on lamb surviv-

ability in spring,” says the firm’s technical veterinary adviser, Clive Bingham. “Generally, if the ewe is in good condition, and you have the feed in front of her, then she should be able to cope.” However, the legacy of the drought and onset of winter means that may not be the case on many farms

this year and ewes facing longer periods of low feed, quite possibly in poorer condition, will be under greater stress leading up to lambing. “This makes them vulnerable to chronic parasitism, for longer.” A long acting drench product is vital for such poor conditioned (less

than condition score 3) twin-bearing ewes to prop up immune systems, which tend to be compromised under such conditions, he says. “Anything you can do to boost a ewe’s energy level at this crucial stage of her reproductive cycle will help your ewe flock performance, and drenching

her is part of that.” Trial work has shown a long acting drench injection on ewes pre-lambing significantly boosted weight of light ewes, with those less than body condition score 2.5 pre-lamb recording the greatest gains, he notes. However, to reduce the risk of a drench-resistant

DEDICATED TO GETTING MORE LAMBS THROUGH TO WEANING.

worm population developing he says consider

not drenching part of the flock.

Chronic parasitism in late pregnancy is a real risk this year, says Zoetis vet Clive Bingham.

Letters Dog wintering article welcomed Thanks for a great article by Anna Holland, May 21, on keeping working dogs warm and dry. We feel one of the main issues is to face the kennel openings away from the prevailing wind and rain. Old galvanized sheets wired to the top of the run provide extra shelter and shade and stop that wind-driven rain getting in: 5-Star kennels definitely need these. Just a bit of thought goes a long way to making kennels liveable for hard working dogs. As for working dog welfare, I do wish owners would have the decency to give the dogs a run morning and night when they’re not in work. Twentyfour hours in a kennel is a cruel existence. And when the old working dog is past its use by date, don’t delay calling the vet in to have it put down. A retirement of being left behind in a kennel when the rest of the team head off for work is miserable: surely not what a hard working dog deserves at the end of its life. Liz Cullen

Begging to differ In response to Anna Holland’s column, May 21, we take issue with her derisory remarks about wool-filled dog bedding. Even damp, wool is therapeutic and warms dog’s’ joints, and in 22 years of supplying such beds, we’ve never had a complaint. Feedback from farmers on the beds includes: “Our working dogs love their wool-filled bedding. If you give your dogs quality input, you get quality output.” Stableford family, Waipukurau. “Light is a 14-year-old sheep dog loving her Tough Stuff (bed) and so am I! It is no trouble to take it out of the kennel when necessary”. Wendy Brown, Timaru. “I have used these beds for over 10 years and find them very effective. I re-cover with empty sacks when necessary.” Murray Grahame, Tikokino. “We really appreciate what they do for the working dogs.” Peacock family, Waipukurau. “The bedding has kept the dogs warm and healthy and it only takes minutes to put them out to air. Even wet, they are warm.” Vicky Sievers, Ashley Clinton. The beds we supply for farm use are made with “Tough Stuff” double layered hessian packed with about 4kg of scoured, long fleece wool. (see www. vipbeds.co.nz). We supply an extra empty sack to pull on when the first layer begins to wear through. Good management by caring dog owners, prepared to put a little effort in, is the key. Barbie Cassidy, VIP Dog Beds, Waipukurau.

NILVAX

ELE-00712-RN

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• Boosted with levamisole for an enhanced immune response • Boosts antibodies avaliable for colostrum – ideal for multiple-bearing ewes • Longer vaccination window, up to 6 weeks before lambing

PRE-LAMB WITH CONFIDENCE

® Registered trademark. COOPERS Phone: 0800 800 543. www.coopersonline.co.nz PLMB-168-2013

00712_COOPERS Pre Lamb - Nilvax Ad_RN.indd 2

30/04/13 2:51 PM

Rural News // june 18, 2013

machinery & products 33

Bigger tank, wider boom lifts productivity DOUBLING SPRAY tank capacity and using a much wider boom have helped lift a Taupo dairy farmer’s productivity. Geordie Bull milks 1200 cows on 350ha at Tirohanga, 30 km north of Taupo. He also farms an adjacent 170ha run-off

block, which he uses for raising young stock, wintering cows, and growing winter brassicas, peas, and oats. For pasture renovation Bull prefers the spray and drill method because it is more economical and causes less disturbance

of the thin topsoil layer common on the volcanic plateau. He sprays about 600ha annually. When looking for a new sprayer in early 2013, Bull chiefly wanted it to handle the contrasting terrain (flats, rolling hills, and steeper sidelings) on

his two farm blocks and do the job faster and cheaper than his former setup. Tank size first attracted him to the Hustler Spraysmart Fox 1800. At 1800L it has almost twice the capacity of his old sprayer, and covers more ground with its 14m spray boom

(covering 16m). “Tank volume was number one, because a lot of time is wasted filling up. A bigger tank and a wider boom reach allow me to get my spraying done 60% faster than before.” Bull has been impressed with the sprayer’s other innovations. Auto rate control provides greater economy and precise application by automatically adjusting the spray rate according to the ground speed of the tractor. “It’s suited to this terrain because I can vary

my speed according to the type of paddock knowing my spray rate is spot on.” Notable on the Spraysmart Fox 1800 is a central control hub, located at ground level, which allows all functions to be controlled from one place. Also at ground level is a slide-out chemical mixing and induction hopper, which removes the heavy lifting from loading and mixing chemicals. It has a built in wash nozzle for rinsing the inside of the spray container, which can then be safely discarded.

Self-leveling suspension keeps the spray boom at the same angle as the tractor while working on inclines, and eliminates whip by cushioning the bumps when moving over rough terrain. Hydraulic boom lift provides effortless control from the driver’s seat, while the spray boom itself has a three-directional breakaway mechanism designed to avoid serious damage from forward, reverse or vertical impacts. Tel. 06 879 7926

MT MIXER/TANKER With its 1800L tank, the Spraysmart Fox 1800 has the capacity to markedly reduce operating time.

Mowers, splitters, chippers available LAWNMOWERS and other groundscare gear from well-known Australian maker Rover will soon be on sale in 63 Stihl Shops nationwide, says distributor Steelfort Engineering. Rover has made ride-on mowers for at least 50 years. The products to go on sale here in August will also include log splitters and chippers, shredders, vacs and tillers. They will carry a three year warranty. “The introduction of such an extensive Rover range means that lifestyle block owners and commercial users can now choose

exactly the right equipment for their environment,” says Steelfort national sales and marketing manager Gavin Lowndes. “One of the reasons we chose the Stihl Shop network – apart from offering the largest distribution – was that their staff can support every product with parts and service and we know that is important to our customers.” Stihl Shop group manager Scott White says adding the Rover brand gives them a “premium” in selling and servicing of outdoor power equipment in New Zealand. “Rover brings with it strong

brand equity that will see us increase our market share in the important ride-on mower segment. Our licensees are excited by the prospects this agreement affords them at local level. “They are also confident that their customers will share this enthusiasm.” The Rover range will include at least three side discharge models, three direct collect rear catcher models and two zero turn machines catering for lifestyle block owners and commercial users.

A Mobile Mixer/Tanker built on a strong galvanized steel frame can carry and mix colostrum, milk powder or any other h calf lf supplements l that you want to feed out. Models include: MT800 - 800L tank MT450 - 450L tank

Powerful P f l Honda H d Petrol Motor

Tel. 0800 4 STIHL www.stihl.co.nz.

Si l Cli Simple Click k and d Clean System

Mi /di Mix/dispense 320 Litres Per Minute With Easy Use Dispenser Gun

Calibrated C lib d Floating Level Indicator

ORDER NOW ON - 0508 688 688

FEED OUT AND SPREADING MACHINES Twin Floor Transpread

MEGA COMBY XL NOW AVAILABLE!

• 2 floors give greater accuracy on bends and corners • Option of spreading half bout width • More floor torque for the toughest jobs

• Stainless steel bin • 500mm wide conveyor • 3 speed gearbox • Optional load cells and Twin floor • Optional electronic auto steer

500 Series Spreader

PO Box 6 Hinds, Mid Canterbury • Phone 03 303 7228 • www.robfarm.co.nz For your catalogue of all our products please contact

Don 027 433 2212

• Feeds pit silage • Round & Square bales • Extension Bin • Floatation tyres 400/60x15.5 • Optional tilting elevator • Self loading forks • Level capacity 13cu/m

Super Comby EX

Rural News // june 18, 2013

34 machinery & products Straight and true!

Pictured Left to Right: Colin Millar (Rotorua) NZPA World Board member and senior vice chairman of WPO; Malcolm Taylor (Putaruru) NZ reversible contestant; Murray Redmond (Methven) NZ conventional contestant; Norm Styles (Timaru) assistant coach; Bruce Redmond (Methven) team manager, coach

Tunnelhouses

• Ideal addition to your block • Grow vegetables all year round and reduce your grocery bill • Very affordable and easy to install • Totally NZ made by family business making tunnelhouses for 30 years • Range of models from 2m to 8m long

T/F 03 214 4262 E morrifield@clear.net.nz

www.morrifield.com

The New Zealand Ploughing team will depart from Auckland on the June 26 to attend the 60th World Ploughing Contest, being held at Olds College, Alberta, Canada on July 19 and 20. Some 30 countries have entered competitors, with containers of tractors, ploughs and spare parts arriving daily. The New Zealand team’s equipment is currently in transit and due to arrive by June 20. Currently 450 visitors have registered to attend the contest. As part of the official visitors programme, visitors will enjoy a day in the Banff National Park and a visit to the Calgary Stampede. To celebrate 60 years of the World Ploughing Organisation there is a special celebration dinner arranged as part of the programme.

Maximising harvest TWO NEW combine draper heads designed to maximise the performance of New Holland’s CR series twin rotor and CX8000 series ‘Super-Conventional’ combines are announced by the company. Header design is important role in reducing harvest-

GET YOUR GATEWAYS SORTED WITH TARAGATE! TARABUNGY GATE – extra durable double skinned bungy cord – unique ‘Taraconnect’ spring connector device - supports and protects shock – includes our ‘clip-away’ handle and Taravator – available for 5m, 6m and 8m gateways or to suit Tarabungy Gate RRP $21.79 5 metre gate

CLIP-AWAY Gatebreak

BeTTer producT (sTill) aT a GreaT price

Clip-Away RRP $7.00

– the gold standard in gate handles – clips away on to the wire with unique second hook – extra heavy duty

BUDGETBREAK Economy Gate Break Handle Budgetbreak RRP $4.90

– robust design – fully insulated – replaceable spring

TARAVATOR

The popular MG mobile feeder is now better than ever. The new manifold design delivers efficient flow during feeding and keeps milk clean from dirt and other contaminants. The new retractable draw bar ensures hassle-free transport and easy storage, and our innovative click-and-clean’ washing system makes cleaning fast and effortless. The new improved MG range: great feeders (still) at a great price! 7093F

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Taravator RRP $4.51

– market leader heavy duty activator – four point fixing, works horizontally or vertically – wide strong easy latching point – stainless steel contact point – won’t short out! – included in all Taragate gate kits

RD2 Hamilton, New Zealand Phone 07 843 3859 Fax 07 843 3952 Email info@taragate.co.nz Web www.taragate.co.nz

ing losses, says New Holland combine marketing manager Nigel Mackenzie. “With the increasing sophistication of combine technology, it’s especially important for growers to be sure their header… will be fully compatible with their combine. With New Holland draper heads, owners can maximise their productivity.” Tim Radke, president of Alta Implement, a New Holland dealership in Alta, Iowa, cites the example of one of his customers, a grower who when faced with hail-damaged beans, decided on a New Holland draper head. “Many of the beans were down and the pods split,” Radke explains. “An auger head has a greater tendency to pop the beans out of the pod, but a draper head has a more gentle feeding action, which puts more beans in the tank. At $13-14/bushel beans, more beans in the tank is more money in the bank.” Last year, Ty Brown, a cash crop producer in Rossville, Indiana, used an NH draper head to harvest seed beans with his New Holland CR9070 combine. “One of the biggest advantages is the greater efficiency we got out of our New Holland combine. It used to be the header was the limiting factor; now the only thing that limits us is the capacity of the combine. The draper header is a simple design, NH says.

It feeds evenly, and that helps the combine do a better job of threshing the beans, with fewer splits. It has the simplicity associated with an auger head, and advantages in line with the draper. New Holland draper heads have the maker’s award-winning SynchroKnife patented centre knife-drive system that eliminates header vibrations, and reduces overall header loss. This system works on the same basis as the two opposing knife drives, but suffers none of the vibrations they can cause by keeping the opposing knifes perfectly synchronized. The drive also uses no complex drivelines, reducing maintenance needs and saving power. Having the drive in the centre of the head reduces the end shield width to minimize rundown of standing un-cut crop, NH says. New Holland 840CD rigid draper headers are available in cutting widths of 25’ 30’, 35’, 40’ and 45’. A six-bat New Holland-designed cam reel smoothly feeds crop to the cutterbar and draper belts, helping to reduce header loss. The NH 880CF SuperFlex draper header floats for a closer harvest. The 880CF SuperFlex draper headers are available in cutting widths of 30’, 35’, 40’ and 45’. Tel. 06 356 4920 www.newholland.co.nz

CAMBRIDGE FARM ROLLERS

NEW 10ft Roller with Extension Drawbar & Screw Jack $6700 Vee Ring Roller Seeder Drill with Vee bottom seed box, hydraulic clutch, ext. drawbar, ...................... $18,500 Special rollers made to order, • All prices ex-Factory, Excl GST • Spare parts, Rings and Bearings. Competitive freight rates to the North Island 26"dia rings ................... $85.00 24"dia rings ................... $80.00 Ph: 0800-838 963 AUSTINS FOUNDRY LTD 131 King Street, Timaru www.austinsfoundry.co.nz

Rural News // june 18, 2013

machinery & products 35 Simpler rules for farm vehicles on road NEW RULES for farm vehicles came into force on June 1. Rural Contractors NZ executive director Roger Parton says the rules ease compliance by farm vehicle owners and simplify vehicle running. Rural Contractors NZ has worked with Ministry of Transport, NZTA and NZ Police to develop them, he says. “These changes were a long time coming and have resulted

in rules that are easy to understand, comply with and enforce. These changes recognise the unique operating characteristics and environment that agricultural vehicles require to travel on the road.” The rules will reduce compliance costs for rural contractors and farmers. The changes include: a two-tier system for agricultural vehicles based on a 40km/h speed.

Vehicles slower than this must be roadworthy but will not be subject to other rules. The changes require farm vehicles first registered from June 1, 2013 to show a flashing amber beacon at all times when on-road to alert other road users. A new licence endorsement allows a greater range of farm vehicles to be driven by the holder of a car licence with proven

skills. Other changes improve and simplify the rules on pilot vehicles, work time variation schemes, hazard identification and vehicle visibility. “Rural Contactors NZ has run seminars nationwide in the past month to help educate members and the agricultural sector about the new regulations and ensure the industry is up to date with its responsibilities,” Parton says.

A N E W A P P R OAC H T O E N G I N ES

Girls nurtured to their full potential CHOOSE WELL for your daughter’s education: that’s the message from South Island independent boarding and day school Rangi Ruru Girls’ School. “We have a proud history as specialists at educating girls in years 7 to 13. Since the 1890s this is what we have done and continue to do.” The school says it is important to provide a safe, warm, secure and supportive environment. Fun, friendship and independence are three of the most essential things in girls’ lives and boarding at Rangi Ruru provides this. “Girls leave Rangi having forged friendships that last well beyond their years at school.” A school and education should be filled with variety and diversity, and Rangi Ruru says it is committed to providing an education for every girl, not just the girls who excel academically, musically or in sport. Rangi Ruru was the first school to implement the GATE (Gifted and Talented Education) programme and personalised development plans. This means tailoring learning to help nurture girls’ development to help them realise their full potential. Outside the academic, Rangi Ruru also provides variety and flexibility to allow girls the opportunity to have a go at whatever they wish or to extend themselves in their chosen field. Prudent financial management has enabled the school to undertake a full campus redevelopment to include the latest educational facilities and resources. As a result of this careful management, Rangi says it is able to keep boarding fees lower and provide opportunities that rural and smaller schools cannot. “If boarding is something you are considering, come and spend a few days with us – meet our girls and staff and get a feel for the Rangi boarding experience.”

At the heart of any Deutz-Fahr tractor is its engine. It’s therefore reassuring to know that Deutz is one of the largest independent manufacturers of diesel engines in the world. Our modern high torque, low emission and fuel-efficient engines are supplied to many of the world’s leading automotive companies and are performing tirelessly in every corner of the globe. To join the record number of farmers benefiting from the power and efficiency of a Deutz engine, contact your Deutz-Fahr dealer today.

Tel. 03 983 3700 www.rangiruru.school.nz

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