Rural News 3 Dec 2013

AGRIBUSINESS

ARABLE

Sheep jetter maker expands their export market into Asia. PAGE 31

FAR visits South Canterbury for its first major field day of the season. PAGE 36

FED FARMERS Fed leader fears that farm debt could rise by another $1.5 billion if interest rates rise.

RURALNEWS

PAGE 16

TO ALL FARMERS, FOR ALL FARMERS

DECEMBER 3, 2013: ISSUE 551

www.ruralnews.co.nz

Danone plays hardball!

SUD ES H K I SSU N sudeshk@ruralnews.co.nz

FONTERRA IS eyeing commercial deals with seven of the eight companies caught up in the false botulism scare.

However, one company – French dairy giant Danone – is playing hardball and negotiations are continuing.

Speaking at Fonterra’s annual meeting in Edendale last week, chief executive Theo Spierings updated

shareholders on the co-op’s response to the fallout from the whey protein concentrate (WPC80) saga.

Spierings told shareholders Fonterra was “in a good space” with its rebuild process with regulators and customers around the world.

“Right now we are in rebuild phase in the market…. I would say we are in a good space with local authorities and quite a good space with customers. Of the eight customers, seven have been

addressed and there are commercial deals on the table… one not yet and you know who I’m talking about.”

Danone is the parent company of Nutricia Australia New Zealand which produces Karicare infant formula, one of the affected and recalled products.

Media reports suggest Danone is seeking $320 million in damages from Fonterra.

Spierings later told Rural News that Fonterra had written back to Danone.

Apathy angst

Fonterra is keen on getting a commercial deal with all parties involved, he says. “There are two ways to solve this: either you have a commercial deal or a legal deal. A legal deal is a lose-lose situation for both parties.”

Spierings says Fonterra is close to a commercial deal with Abbott, another global infant formula player which received base infant formula powder made from the batch of WPC80. In its third-quarter 2013 results released last month, Abbott referred to product recall negatively impacting revenue. It says while international paediatric sales were up 3% on an operational basis, they were “negatively impacted by a supplier

A N D R EW SWA L LOW andrews@ruralnews.co.nz

VOTER APATHY could prove the biggest barrier to sector reform, the Meat Industry Excellence group is warning in the run-up to the meat cooperative board elections.

“The greatest thing is to get out there and vote, and to ring around all your mates,” MIE deputy chair Alan Richardson told one of the group’s recent round of 19 meetings.

Farmer apathy “has killed a lot of things since the wool board dissolution,” he added, having earlier reiterated that MIE is determined to see sector reform through, however long it takes.

“MIE’s got a strategy and we’re not going away…. We’ll keep putting people onto those boards until we get change.”

‘Those boards’ may well include Beef + Lamb New Zealand, Rural News understands, however MIE chairman John McCarthy has declined to comment on that opportunity to date.

“Our immediate focus is on the cooperative board elections,” he told Rural News late last week. “We do not want to distract from that until they are out the way.”

With two more days of meetings to go, he estimated MIE had already had 400-500 farmers attend to hear and quiz cooperative board candidates Don Morrison (Alliance), Dan

TO PAGE 11

ROLE MODEL! Brigitte Ravera is in her third year of an agricultural science degree at Lincoln University – pictured with Primary Industries Minister Nathan Guy. She was one of five young people, now making successful careers in agriculture, who spoke on a farm experience trip to the Manawatu last week for secondary school science teachers and careers advisors from Wellington to raise awareness of career opportunities in the primary sector. The teachers praised Brigitte, and her fellow young colleagues, as outstanding role models for farming. More on the trip and Brigitte on pages 8-9.

TO PAGE 4

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RURAL NEWS // DECEMBER 3, 2013

ISSUE 551

www.ruralnews.co.nz

Deer NZ gets PGP funding

NEWS ������������������������������ 1-22 WORLD ������������������������������ 23 MARKETS �������������������� 24-25 AGRIBUSINESS ����������� 28-31 HOUND, EDNA ������������������� 32 CONTACTS ������������������������� 32 OPINION ����������������������� 32-35 MANAGEMENT ����������� 36-39 ANIMAL HEALTH �������� 40-43 MACHINERY AND PRODUCTS ������������������ 44-49 RURAL TRADER ���������� 50-51 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 81,232 as at 30.06.2013

NEWS 3

A N DREW SWA LLOW andrews@ruralnews.co.nz

HAVING BEEN turned down at its first attempt, Deer Industry New Zealand has succeeded in getting $8.3m of Primary Growth Partnership funding to progress its Passion2Profit industry strategy.

DINZ chairman Andy Macfarlane told a field day last week that DINZ had heard late in the week before that its bid had been accepted.

“It’s a lot of money and we need to make sure it works,” he stressed to farmers at Braemar Station, on the eastern shore of Lake Pukaki in the Mackenzie Basin. “It’s got to make a real difference, not just ‘shift deck chairs on the Titanic’.”

A PGP application in October 2012 had been turned down because the strategy didn’t show enough connection to the market. That had since been worked on and the application was resubmitted in July.

At the field day Macfarlane acknowledged the concern deer farmers have voiced that the sector is continuing to shrink but assured them “there’s been a hell of a lot going on behind the scenes, a lot we’ve not been able to tell you about”.

“We’re well aware of the confidence issue in the deer industry and across the wider meat industry,” he said.

DINZ has been talking with five processor-exporters – Alliance, Silver Fern Farms, Duncan, First Light Foods and Mountain River – about a strategy to differentiate top-end chilled New Zealand venison cuts from game supplies in the European market.

After nine months of preliminary

talks, the processors last month agreed to go to the business-case stage of a strategy to roll out the Cervena brand, as used in the US, in Europe. “There’s no ink on the paper yet but it is looking very promising.”

A coordinated approach is also being taken on entry into Asian markets.

“When we do go into Asia we need to go in together and make sure we don’t eat each other’s lunch.”

At present only two processing plants are cleared for supply to China, a potentially massive market, he pointed out.

The Passion2Profit strategy should add $2.40/kg in value, so by 2023 this year’s peak schedule of $8.73/kg will, “in today’s dollars”, be $11.38/kg, he predicted. “And if the tide comes back in and the overall market lifts, this [added value] would be on top of that.”

But Macfarlane warned the marketing strategies are not going to lift schedules in the short-term, with EU markets remaining “very soggy”.

“It would be remiss of me to say we’re going to have any answers in six to nine months,” he said, predicting this season’s schedule would bottom-out at $6.30-6.50/kg, subject to exchange rates being unchanged.

The Passion2Profit strategy also includes on-farm productivity improvement, including developing use of breeding values, improved animal health and better feed management.

Small groups of leading deer farmers working together in an ‘advance party’ will be a key driver for change of onfarm practice.

With marketing and productivity advances combined, deer farming could become “by far and away the second

most profitable land use in New Zealand,” said Macfarlane.

He urged farmers to back processors supporting the joint marketing approach with a supply commitment of at least a year, but preferably three years.

“If you’re not happy after three years, then you change.”

Deer Industry NZ chair Andy Macfarlane.

That’s the easy part FORMER PPCS chairman Reese Hart, who was rolled by MIAG in 2007, warned MIE’s candidates “the work you’re doing now is the easy part of the job,” at MIE’s meeting in Pleasant Point.

He urged them to monitor more than just the cooperatives because there are “people in the industry who, shall we say, are less than helpful,” he said, pointing to the failure of the tradeable slaughter rights proposal as evidence of that. “The fact is the negotiations broke down because some companies boycotted them.”

He suggested to MIE that if a company obstructs progress it should be “named and shamed” so farmers

could return the compliment with a supply boycott. “You people have enormous power if you realise it.”

However, that’s not to say the candidates would have any power initially on the cooperative boards, if elected.

As newcomers they’d be the odd ones out and would have to stay strong to their principles and work hard to gain influence, he stressed.

Silver Fern candidate Richard Young echoed Hart’s point about the power of supply, saying if farmers supplied their stock only to companies leading sector reform, the costs of restructuring – ie plant closures – could fall on those outside the process. – Andrew Swallow

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RURAL NEWS // DECEMBER 3, 2013

4 NEWS

Apathy angst FROM PAGE 1

Jex-Blake (SFF) and Richard Young (SFF). “We’ve had huge support and there’s been hardly a negative comment by the time the troops have finished.”

McCarthy echoes Richardson’s call for cooperative shareholders to use their voting rights. “We’ve got to do better than the 20% turnout which is the historic participation rate. At 20% farmers are getting the boards and industry structure they deserve.”

A growing number of influential people in the industry and in politics are backing MIE’s campaign, he says, with last month’s report by the Parliamentary Commissioner for the Environment on land use change adding to the momentum.

“When there’s only one horse in town – dairy – economically that’s potentially suicidal. It’s economics 101 not to have all your eggs in one basket. That brings a serious risk and you’re only one major food scare away from disaster.”

Fonterra director John Monaghan, whom MIE has proposed as an independent director of Alliance by way of a non-binding resolution to be put at Alliance’s annual meeting in Invercargill on December 13, was also at MIE’s meetings and reiterated the need to get out and vote.

When it comes to seeking Government clearance for reforms, the first thing Government would ask is, how strong is the mandate? he said. “You’ve got to get out and vote, show that you care about your industry.”

Flagging his experience assessing candidates for Fonterra’s board over the years, he gave a ringing endorsement for MIE’s men. “I look at these three people who’ve put their hands up to be the future of the red meat sector and I think you’d be very well served.”

While MIE advocates a merger of the cooperatives as a starting point, Monaghan says that’s not necessarily the only option; talking

industry consolidation, whatever form that might take, is more appropriate.

Reflecting on Fonterra’s formation, he questioned whether meat industry players had ever talked with real intent of merging, as opposed to simply having talks because that’s what farmers were calling for.

Mark Paterson, who moved the resolution that Monaghan be appointed, warned of the tight timeframe for returning voting papers, and the potential pitfalls of the proxy process. “You have to put the name of someone who will be at the meeting as your proxy…. And [the voting papers] have to be back in Invercargill by December 11.”

He and Monaghan resolution seconder Dr Mandy Bell would be present at the annual meeting so could be named as proxies, he pointed out. @rural_news facebook.com/ruralnews

Scott Champion

Beef+Lamb ‘agnostic’ on MIE SPEAKING ON Beef + Lamb NZ’s monthly conference call ‘Scene and Herd’ last week, chief executive Scott Champion described the levy body’s position on sector reforms as “agnostic”.

“We just encourage our farmers to participate. We don’t have a view on how they should vote or which meat company they should support. Our role is one of awareness.”

He did, however, encourage producers to “get closer to” their chosen meat company, implying loyalty of supply is an issue for the industry.

Nominations for Beef + Lamb NZ’s eastern North Island director position and southern South Island seat close on December 20. Both seats are vacant as retiring directors Mike Petersen and Leon Black respectively are not seeking re-election.

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RURAL NEWS // DECEMBER 3, 2013

NEWS 5 Winemaker wins another title MARLBOROUGH ENTREPRENEUR and winemaker Peter Yealands has won the Lincoln University Foundation South Island Farmer of the Year award for 2013.

The finals were held at Lincoln University late last week, chief Judge Nicky Hyslop saying the Yealands entry stood out for its innovation, entrepreneurship and vision.

The prize is $20,000 for overseas travel for study, research, marketing or a combination of these.

The Yealands entry, one of six finalists from the South Island, also Peter Yealands won the Silver Fern Farms ‘Plate to Pasture’ award for consumer awareness, and the Lincoln University award for best use of technology and innovation, receiving $5000 for each.

“Peter impressed us with his philosophy of ‘think boldly and never say it can’t be done’,” Hyslop says.

“He also demonstrated outstanding innovation inside and outside the winery business. That was backed up by sound business practices integrated into every aspect of the operation, and a holistic ‘vine to bottle’ approach.”

Andrew, Karen and Sam Simpson from Lake Tekapo were runners-up with their high country Merino sheep station, Balmoral, that has diversified into forestry, deer, cropping, property development, conservation recreation, value-added processing of their wool and meat.

Hyslop says this entry was also notable for its vision and entrepreneurship, the extensive skill set within the family operation, its business and governance structures and international networking.

The BNZ award for best human resource management and the award for resource use efficiency were both taken by North Canterbury dairy farmers Alan and Sharron Davie-Martin, winning $5000 for each.

Lincoln University Foundation chair Ben Todhunter says there was an outstanding group of finalists this year, all of high calibre.

Opportunities abound in Thailand PE TER BURKE peterb@ruralnews.co.nz

PRIMARY INDUSTRIES Minister Nathan Guy says there are good opportunities for New Zealand to sell more primary exports to Thailand.

Guy is just back from Thailand where he and the Prime Minister and representatives of 23 businesses, mainly food and beverage, went looking to expand exports.

Guy launched a big promotion of New Zealand products in a large supermarket in Bangkok. He was amazed by the freshness and quality of the products, showing New Zealand exporters are adding a lot of value.

“The feedback from our ambassador in Bangkok is that the promotion has been hugely successful. The reaction from consumers is they want to consume more New Zealand products

because they understand our food safety systems are world leading and [the products high] quality and fresh.”

But there are problems in developing the Thai market: a 19% duty on our products, though this is dropping 3% each year and will cease by 2020; and a cap on the volume of products, especially beef, of which we sell about 800 tonnes annually to Thailand. Once the cap is reached a 50% tariff applies.

“The beef and dairy industry people on the trip told us we are hitting the cap in the first couple of months [each year],” Guy says. “The consumers want more of our dairy and meat products so we’ve asked their prime minister if there is any way to adjust the caps, and they are

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RURAL NEWS // DECEMBER 3, 2013

6 NEWS: FONTERRA AGM

New director excited to be on deck SUD ES H K I SSU N sudeshk@ruralnews.co.nz

FONTERRA’S NEWEST board member Michael Spaans is excited about coming back to a governance role in the co-op.

The dairy farmer from Te Aroha served on the Fonterra Shareholders Council for eight years. He was elected last week at the coop’s annual meeting, replacing former chairman Sir Henry van der Heyden as a director. Sitting directors Ian Farrelly and Malcolm Bailey were re-elected for a threeyear term.

Speaking to Rural News after his election, Spaans said the passion for serving Fonterra never left him.

“After leaving the Fonterra Shareholders Council, I pursued governance opportunities within the dairy industry,” he says. “But the passion for Fonterra never really leaves you. It gets into your blood.”

Spaans, who missed out last year, thanked shareholders for their support and looks forward to contributing to the board.

He believes the co-op is well placed with a strong capital structure and a stable board to grow its business and improve returns.

Spaans is now reviewing his other directorships. He plans to remain a DairyNZ director but has resigned the chairmanship Michael Spaans of Animal Breeding Services Ltd. He is chairman of Waikato Innovation Park Ltd, a director of Shoof International Ltd and Rimu SA and is a DairyNZappointed director of OSPRI New Zealand Ltd. Fonterra shareholders ratified the appointment of David Jackson

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and Simon Israel to the board for another term.

Jackson, a former chairman of accounting firm Ernst and Young, joined the board in 2007 and chairs the audit, finance and risk committee.

His appointment received 94% support.

Israel joined the board earlier this year. Born in Auckland, he has served in governance roles in Asia for the last 33 years. He is chairman of Singapore Telecommunications and served as chairman Asia Pacific for French dairy giant Danone. Israel received 95% support among shareholders.

Fonterra shareholders also voted to approve a 2014 budget worth $3.6 million for the Shareholders Council.

Fonterra CEO Theo Spierings chats with farmer shareholders at lunch during last weeks’ annual meeting.

Time to lift game FONTERRA CHIEF executive Theo Spierings says the co-op needs to lift its game on sustainability throughout its supply chain.

He told the co-op’s annual meeting it was not only about sustainable farming.

“I’m talking about sustainability through the chain, end to end… onfarm, in factories and in logistics. If we have a clear story in sustainability we can connect that to our strategy and our strategy becomes stronger.”

Spierings says the botulism scare earlier this year had been an ‘’enormous elephant in the room’’ and it was still in the room for some.

Coming out of the crisis was an excellent opportunity to lift the game, he says.

RURAL NEWS // DECEMBER 3, 2013

NEWS: FONTERRA AGM 7

TAF pays off – Wilson SUD ES H K I SSU N sudeshk@ruralnews.co.nz

FONTERRA WOULD have faced paying $130 million in share redemptions to drought-stricken suppliers last season without TAF, says chairman John Wilson Speaking at the co-op’s annual meeting in Edendale last week Wilson praised TAF, saying it is working well for the co-op.

He says the drought last summer, the worst in 70 years, hit the co-op and its farmers hard, “but it would have been a lot tougher without our current capital structure”.

“The co-op would have been facing the prospect of paying out around $130 million to redeem shares.

Instead, our permanent stable capital structure meant we could support farmers with a lift in the advance rate.”

However, the higher

advance rate to farmers forced the co-op to borrow more money. Fonterra finished 2012-13 with a debt to debt plus equity ratio of 39.6%.

Wilson says this reflected the strong balance sheet. But he adds the co-op would have achieved lower debt ratio (36%) “if [it] had not made the right decision to support farmers through the drought’s immediate impact by raising the advance rate”.

The strong balance sheet enabled spending

$925m on acquisitions, joint ventures and completing a new processing site at Darfield, Canterbury.

Wilson also touched on the board’s dividend policy – maintaining a consistent dividend stream in the normal course of events. This is expected to be 65-75% of adjusted net profit after tax over time – important considering the volatility in global dairy markets.

“Fonterra has the balance sheet and cashflow

Volume and value strategy TAF HAS also enabled Fonterra to execute transactions to support its volume and value strategy, says John Wilson.

The Fonterra shareholders market brought greater flexibility, farmers being able to buy and sell shares throughout the year, he says.

He notes that $24 million, equivalent to at least a third of all trading in November, was done in the farmers’ market.

John Wilson

strength to ‘look through’ the volatility in the short term, and ensure we are able to make judgements to protect the business in the longer term. At the same time, the board will always have the ultimate discretion as to the dividend when it sets it at the half and full year.”

He alluded to the risk of looking at one point in time. Last year NZ Milk Products earnings were $422m for the first half and just $72m in the second half. This difference is over that one date – the half year at the end of February, he says.

100% commitment to fencing waterways FONTERRA FARMERS are committed to fencing 100% of waterways on farms, says chairman John Wilson.

Fencing audit results (due December 1) will show “close to 90%” of waterways on Fonterra farms have been fenced. Wilson says farmers have fenced 20,400km of waterways – a remarkable effort. Work is underway to fence the remaining 4000km.

The Sustainable Dairying: Water Accord (SDWA) released in February said dairy companies would ensure 90% of waterways were excluded by May 31, 2014.

And the companies will work towards excluding cattle from 100% of waterways on farms by May 31, 2017.

Wilson says Fonterra remains committed to meeting its targets under the accord and refers to the “close to 90%” fenced figure as “a remarkable effort by our farmers”. “And there is a massive focus to reach the 100% target,” he told Rural News at the co-op’s annual meeting in Edendale last week.

Wilson says some farmers yet to achieve the 100% target have good reasons for not having done so. “Some of these farms are flood-prone and have difficult terrain that is hard to access, but we

all remain committed to having 100% of waterways with stock exclusion in place.”

Fonterra Shareholders Council chairman Ian Brown says farmers need to continue to evolve and adapt to challenges on sustainability.

Brown told the meeting most Fonterra farmers have been pro-active on environmental sustainability efforts.

“This is evidenced by the substantial personal investment and progress made in effluent management, fencing, riparian planting and other environmentally focussed upgrades to our businesses.

“We should also be aware there are a minority among us who still have a way to go and it is in all our interests that they continue to work to reach the level required.

“Change will take time. If we are to retain our freedom to farm, grow our milk solids and maintain our competitive advantage it is necessary to continually work toward actions we can take onfarm to improve water quality.”

Fonterra sustainability experts visit all 10,600 co-op farms where environmental practice is a key topic of discussion.

– Sudesh Kissun

26/11/13 3:53 PM

RURAL NEWS // DECEMBER 3, 2013

8 NEWS

Attracting ag prospects needs graft A farm experience trip to Manawatu last week offered a taste of farming life to 30 secondary school science teachers and careers advisors from Wellington. The project was conceived and run by Rural News reporter Peter Burke, seeking to raise awareness of career opportunities for young people in the primary sector.

FORMER LANDCORP chief and Massey University pro-chancellor Chris Kelly says more young people could be encouraged to make careers in agriculture if education on the industry and its opportunities were better coordinated. Kelly was a keynote commentator on the trip.

The group toured Hew Dalrymple’s farm at Bulls, then saw the food technology plant and experienced the work at Number Four Dairy farm at Massey University.

Lynette Wharfe, an expert in RMA issues, also commentated during the bus journey. The day ended with Primary Industry Minister Nathan Guy hosting the group at Parliament.

Kelly says he’s encouraged by Beef + Lamb NZ and DairyNZ pooling resources to help fund the project.

But he sees a need for more coordina-

tion and money to meet the demand for more qualified young people in the primary sector to increase productivity and profitability.

“There is no question that we need more people in ag. There is much more science in agriculture now with the emphasis on such things as precision agriculture, measurement of individual animals flocks and herds with EID and effluent and environmental monitoring.”

Kelly says education on the industry must begin early – even at primary school. And educating parents about agriculture is critical, because many of them see it as dirty, low paid jobs and offering little future – totally incorrect, he says. Compounding this misconception is that only 10% of New Zealanders live in rural areas.

“It starts from an early age because

many parents don’t encourage their children to take an ag course and these children aren’t exposed to agriculture at an early age; they are almost trained not to think of agriculture.

“They then move on to secChris Kelly says education of the career opportunities in the agriondary schools where many cultural sector must begin early careers advisors are unaware of – even at primary school. the opportunities that can arise.

That in turn is reflected at the He’s also worried about some of tertiary – particularly university – level where we are not getting enough stu- the myths voiced about agriculture.

“Frankly it worries me that people in dents into agriculture.

“We’re getting lots of students into central Auckland who have never been fine arts and producing lots of lawyers on a farm have this wrong perception and accountants, but nearly not enough that dairying is ruining New Zealand, ruining tourism our lakes and our rivers ag students.”

Partly this is a funding issue: it’s and killing our fish.

“These are extreme statements and expensive to train an ag student, much more cost-effective for a university to mostly not true. Unfortunately perception is reality and we have to turn that train a business graduate.

perception around and make the public understand that most farmers are environmentally conscious and look after their farms because they want to pass them on to future generations.”

Kelly says it was interesting to see the teachers on the trip “blown away” by the technology they saw at Hew Dalrymple’s farm and at Massey. The trip was for some of the teachers their first experience of a dairy shed.

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NEWS 9

Teachers awoken to farming opportunities DAWN HALL, a careers advisor at Wellington College, had previously visited dairy farms, but found the Manawatu trip especially valuable in giving teachers information to hand on to students and parents.

“One downfall at the moment is that while the industry needs our kids, we haven’t known what areas to put them into and where to get more detailed information,” she told Rural News.

“The feedback from my colleagues is that we need to do this type of trip with greater frequency and bring our students out as well, and start feeding our students into the universities rather than those from overseas.”

She and her colleagues now recognise the huge career opportunities in agriculture, she says. They hadn’t previously understood.

“It’s also hard for parents: they need to understand there are clear opportunities out there for their children.

“Having something we can hand out is useful, such as a snapshot of careers and what they involve, or a day in the life of these people and what they are doing after

Farmer Hew Dalrymple impresses teachers by starting irrigators with his iPhone!

graduating. Then we can sit down with parents and show them what’s involved and where it may take the students.”

Though Hall had previously seen dairy farms she had no idea of the sort of technology involved. “It was a great eye opener.”

Undergrads envision doors opening A HIGHLIGHT of the day was talks by five young people now making successful careers in agriculture.

Amanda Murray from Beef + Lamb NZ; Calvin Balls from Ballance AgriNutrients; Shane True, a dairy farm manager; Stacey Hill, a shepherd; and Brigitte Ravera, now finishing her third year in an agricultural science degree course at Lincoln University, explained how they have made a career in agriculture. The teachers praised and applauded them as outstanding role models for farming.

Brigitte Ravera, from Lower Hutt, does not have a farming background, but “during a school visit by a past student, then studying at Lincoln, I learnt about how awesome the university was and the numerous scholarships available. She shared her love for agriculture with me and also showed me pictures of her feeding calves and milking. I was pretty much sold.

“Fast forward half a year from my first day of lectures at Lincoln and I knew I had made the right choice. Then fast forward through the next three years and every year has opened new doors with opportunities each more exciting than the last.”

As a little girl Ravera played with a model farm set and her passion for agriculture has never changed.

“Next year, I will be finishing off the fourth and final year of my degree, and an honours year. My honours project/thesis will be examining the nitrate levels and flow rates of cow urine on different feeds and during different activities.”

Her plans include working on a dairy farm and moving into management, possible farm ownership and maybe agricultural politics.

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RURAL NEWS // DECEMBER 3, 2013

Rural home support needs more – RWNZ PA M TI PA pamelat@ruralnews.co.nz

THE HOME support sector for rural people will be in crisis next year, says Rural Women’s new president Wendy McGowan, who is a nurse.

It will be a focus of Rural Women’s advocacy role next year because she believes any more increases in the minimum wage will cause a collapse in home support services in rural areas.

None of the district health boards, in their funding of rural home support, has passed on the three most recent minimum wage increases, McGowan told Rural News.

The home support service provides housework and personal care to people in their homes including elderly, ACC cases and people with temporary medical issues, for instance major surgery.

“The greatest threat will be the collapse of the rural services,” says McGowan. “It will happen before it happens in [towns]. I don’t know if New Zealand has the capability to care for these people within our hospitals or rest homes.

“Rural Women will advocate strongly for their industry to be given their

own funding rather than it coming through district health boards. The boards aren’t passing on some of the funding.”

She says all the workers are on the minimum wage and some are above, but a further increase will collapse the rural home support industry. Distances travelled by rural workers mean they attend to fewer people in a day than urban workers. “More money has gone into the sector but this has only kept up with the increase in volume as the population ages,” she says.

McGowan grew up in Fairlie, Canterbury, where her father had a transport business.

She met a young shepherd, her husband Rusty, and moved to his 260h family farm in Kaharoa, Bay of Plenty, in 1974.

They farmed sheep and beef, moved on to dairy grazing and now lease it for dairy and sheep and beef. They keep their hand in with 30 sheep and she still helps her husband in the woolshed with the fleeces.

McGowan joined Rural Women at age 20. She served a three-year term as national vice-president, and has been the national councillor for Bay of Plenty/Coromandel for

the last eight years, taking a special interest in landuse issues, bio-security and food safety.

She was Rotorua Taupo president of Federated Farmers at a time when was the variations were starting to come out on water quality. She was also on a biosecurity taskforce for 18 months and a Rural Women representative on the Consumer Forum.

McGowan says the role of president will be fulltime and another 2014 focus will be Rural Women’s involvement in the UN International Year of Family Farming. The organisation is planning nationwide events in March and April to highlight the important role of family farms in provincial economic prosperity.

“We have teamed up with Doug Avery, the 2013 Landcorp Communicator of the Year, to run events next March and April and we are working through the Royal Agricultural Society.

“We have confirmed A&P showground venues in Stratford, Carterton, Motueka, Rangiora and Ashburton. Further events are planned but we are yet to organise events for the top of the north.”

New RWNZ president Wendy McGowan.

NEWS 11 Playing hardball FROM PAGE 1

recall in early August” in certain international markets.

When asked if Fonterra is offering compensation to the seven customers as part of the deals, Spierings replied “that could be”.

The contamination was confined to 38 metric tonnes of WPC80 made at Fonterra’s Hautapu plant near Cambridge and first picked up at a plant in Australia. It was used to make infant formula, juice and dairy beverages, yoghurt, body building powder and animal stock food.

One of the eight companies affected was Fonterra subsidiary NZAgbiz, which used the WPC to make calf milk replacer. The company recalled several batches of products.

Australian livestock feed company Maxum International also recalled some products.

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He told the Fonterra annual meeting that while it was in a good space with customers, winning back the confidence of consumers was the most difficult. A lot of consumers know about the WPC80 issue.

In China about 84% are aware of the WPC80 scare but only 40% know it was a false positive.

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RURAL NEWS // DECEMBER 3, 2013

12 NEWS

Water quality scenario off the mark – Feds P E TE R BU R K E peterb@ruralnews.co.nz

MANY PEOPLE are getting wound up about a water quality scenario – as outlined in the recent report by the Parliamentary Commissioner for the Environment (PCE) – that will never come to pass.

So says Andrew Hoggard, Federated Farmers Manawatu/ Rangitikei provincial president and a dairy farmer, said to have a good grasp of water quality issues.

Hoggard told Rural News that while he doesn’t dispute the conclusions in the report, which claims if the dairy industry keeps

growing at the present rate there will be problems, this scenario is dubious.

He says the recently announced National Objectives Framework sets limits and outcomes for water quality and farmers themselves are doing a huge amount to reduce nitrogen leaching on their farms.

Also, several research projects are underway, at Massey University and other science institutions, to develop new ways of reducing N leaching in the dairy industry – identified by the PCE as the main cause of the problem Hoggard says the report is a timely reminder about what could happen if something isn’t done to

mitigate the problem.

“But I don’t think the scenario outlined in the report is going to be hit.

We want to be planning growth in dairy farming in catchments that can handle it, not in ones that

can’t.

“I agree that if you add more and more dairy to a catchment – no matter

Dairy growth fingered PCE DR Jan Wright heads her report by saying water quality issues are not the fault of one industry.

But in the next paragraph she sheets home the fact that intensive dairy farming is the main cause of N leaching in waterways, noting “there is a clear link between expanding dairy farming and stress on water quality”.

The report notes the efforts of farmers to mitigate the problem and new laws and guidelines that effect control.

But Wright points to a steep increase in the last 20 years of nitrogen fertiliser sales and says that along with greater

fertiliser application is the biggest issue – urine from cows. More fertiliser has led to more cows being run and Wright assumes dairying will grow.

One interesting observation is that N leaching rates are particularly high when cattle are break-fed on winter forage such as swedes.

Pessimistically Wright concludes “Unfortunately if we continue to see large scale conversion of land to more intensive uses, it is difficult to see how water quality will not continue to decline in the next few years. This is despite the best efforts of many and some undoubted successes.”

if everyone’s on best practice – you will increase the nutrient loading.”

But Hoggard adds such growth will seriously affect farmers who have been farming in those catchments for years, because they will have to cut back production to reduce the N loadings and that will affect their profitability. “So it’s about making sure we don’t stuff things up for those existing guys, just to have more and more conversions.”

Hoggard gets annoyed when he reads about people making a song and dance about the dairy industry doing this and that and polluting the rivers. He says there is

Andrew Hoggard

no evil plot by a fictitious character to grow dairying.

“It’s not the industry, or Fonterra or DairyNZ. It’s an individual farmer looking at their farm, looking at their future and where they have been and asking themselves hard questions. It’s about whether they are getting a decent return or finding a better way to go for their family and family farm.”

Hoggard says it’s no different from a person in town seeking out the best job for their and their family’s future. @rural_news facebook.com/ruralnews

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NEWS 13

Kiwifruit disease still spreading PA M TI PA pamelat@ruralnews.co.nz

PSA-V WAS FOUND in northwest Auckland in November through mandatory monitoring, says Kiwifruit Vine Health (KVH).

Chief executive Barry O’Neil says it’s disappointing Psa-V has been found in another region.

However, the disease has been picked up early because growers were carrying out mandatory monitoring. Early detection means a rapid response.

The Psa-V positive test result was on Hort16A vines on a kiwifruit orchard in Kumeu.

KVH has established a controlled area within a 10km radius which includes 22 mainly Hayward (green) orchards.

KVH chairman Peter Ombler says many kiwifruit growers are starting to realise they can live with Psa. They can maintain a productive orchard by good management, more-resilient cultivars, protective spray programmes and regular monitoring, he says in his annual report.

However, some

regions have only recently been infected. A focus of KVH over the last 12 months has been putting significant effort into assisting growers outside of Te Puke, the first area to be hit.

Growing kiwifruit in a Psa-V environment will still have challenges “but now seems sustainable in the long term with reasonable location, the right variety mix and good management,” Ombler says.

The National Psa-V Pest Management Plan (NPMP), which came into immediate effect in May, provides the best framework for the best chance of industry recovery, he adds.

“Abandoned and unmanaged orchards are a good example of why growers supported the NPMP. They pose a significant risk of establishing and transferring Psa to neighbouring orchards and other regions.”

To date, KVH has reduced the number of abandoned and unmanaged orchards from 63 to 28. We’ve successfully returned two orchards back to productivity and 16 have been removed.”

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KVH chair Peter Ombler says many growers are starting to realise they can live with Psa.

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RURAL NEWS // DECEMBER 3, 2013

NEWS 15

Concerns raised over regional biosecurity PA M TI PA pamela@ruralnews.co.nz

REGIONAL COUNCILS should step up to get involved in keeping pests out of their regions, and checks between the North and South Island may be necessary, says Horticulture New Zealand’s chief executive Peter Silcock.

Silcock has criticised our ability to control pest and disease movement between different regions as “woeful”. We need to do a much better job in this area of biosecurity instead of “collectively crossing our fingers”, he says.

“We might want to put more checking between the North and South Island if we are worried about a pest spreading from one island to another,” Silcock told Rural News.

“We see a role for regional councils to get more involved in some of the pests they haven’t got.

Currently what regional councils tend to do in their own biosecurity work and pest management is focus on the pests they already have. That is important work… but they should also look at what they

haven’t got and what they can do to make sure they don’t get it.”

The Ministry for Primary Industries, industry and the regions need to work together with other interested parties, he says.

The power of community should not be underestimated, but it should not be the only initiative.

An example of the wrong approach is the lettuce aphid problem a few years ago. “When that aphid arrived in Christchurch we didn’t do anything at all to prevent the spread to other parts of the country. We throw up our hands and say ‘it’s here, it’s pretty hard to control so we’ve just got to live with it’.

“We haven’t had in New Zealand a very good history of even trying to manage those pests. I am not saying it is easy to manage the spread of pests between regions but we’ve got to do a much better job.”

Highlighting the issue for Silcock is the need to stop the spread of the Great White Butterfly from Nelson to other regions. “It has impacts not only on crops like

broccoli and cabbage but on commercially grown fodder crops for animals.

We also have some native species of brassica that it could impact.

“This is quite an important challenge to brassicas and the Department of Conservation is leading the charge to try to eradicate this from Nelson.

DoC has reminded holidaymakers to wash down cars and tents because there may be eggs [that get] inadvertently spread to other regions.

“That is a really good call but it also highlights just where things are at in terms of regional biosecurity. We haven’t got any rules in place to help manage that.”

The only measure at hand is to appeal to the public, which is good.

“But we also need to think about other measures which might be a bit stronger. There should be some movement controls on products that would be host to this pest or organism.” It isn’t just about the cabbage butterfly but that is one example, Silcock says.

Kiwifruit disease Psa is a good example of at

New x-ray detectors make it harder for pests HORTICULTURE NEW ZEALAND has welcomed the purchase of 12 newtechnology x-ray units by the Ministry for Primary Industries, bought to screen passenger luggage and mail arriving at airports.

Technology is an important aspect of biosecurity, says HortNZ chief executive Peter Silcock.

“With increasing numbers of people

and amounts of goods on our borders we’ve got to employ really good technology. My understanding is these new x-ray machines are far superior to their older counterparts and they give a lot more clarity and accuracy in the detection of biosecurity threats.

“So it is good that the Government is continuing to invest in technology at our border.”

least having a plan to stop the spread of an organism from one region to another. “It hasn’t worked in that case, but at least we have been trying to put in place mechanisms to manage it.”

HortNZ chief executive Peter Silcock.

RURAL NEWS // DECEMBER 3, 2013

16 NEWS

Feds’ head signals debt warning P E TE R BU R K E peterb@ruralnews.co.nz

FARM DEBT could next year hike up another $1.5 billion – on top of the present $52 billion – if interest

rates rise as predicted by the Reserve Bank.

That warning from Federated Farmers national president Bruce Wills follows its recent national council meeting in Wel-

lington, where the quantum of rural debt was a hot discussion topic.

Among the guest speakers (behind closed doors) was the Reserve Bank governor Graeme Wheeler

and the deputy governor Dr John McDermott.

Wills says rural debt is very high and recent DairyNZ figures show the ‘average’ debt of every dairy farmer is $3 million:

Bruce Wills

some farmers have huge debt and other much less. The Reserve Bank predicts interest rates will rise 2-3% next year.

“It’s looking like a good season and I encourage farmers to be prudent and ensure their debt levels are sustainable in the long term. With the good payout for dairy farmers, it makes a lot of sense to bring balance sheets down to something that gets farmers through the ups and downs.”

Wills says while he doesn’t have the latest debt figures for sheep and beef farmers, he believes their debt is about one fifth that of dairy farmers.

“About 80-90% of farmers have entirely responsible and sustainable debt levels. But as always you get a bunch of people – it’s no different from housing – who load themselves with huge amounts of debt then wonder what’s hit them when the payout drops or interest rates go up. My message is to make

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hay while the sun shines and get the balance sheets in order.”

Wills agrees with Dr McDermott that one of New Zealand’s biggest problems is that people don’t save money. Their desire to borrow is so great that the money has to be borrowed from Australian banks.

“We know if we borrow from overseas it increases the demand for the kiwi dollar because we are busy swapping currencies. Effectively the more money we borrow from overseas the higher the currency goes.

“The predominant reason for our overvalued currency is the borrowing of enormous amounts of money – be it for farming, housing or commercial. We need to save more and take pressure off the currency.” @rural_news facebook.com/ruralnews

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LABOUR’S PRIMARY industries spokesman Damien O’Connor has again questioned the value of the Government’s Primary Growth Partnership (PGP) scheme.

O’Connor claims the PGP, currently under investigation by the auditor-general, is failing to stem the decline of the red meat sector and must be reviewed by the Government.

“In spite of the Government spending half a million dollars on a red meat strategy in 2011 and now having committed over $350 million dollars of taxpayer and farmer money in PGP projects, dry stock numbers are declining, resulting in a huge impact on rural New Zealand.

“The release of the Parliamentary Commissioner for the Environment’s report is further evidence of the dangers of the large scale conversion of dry stock to dairy farming in some regions.”

O’Connor says Primary Industries Minister Nathan Guy refuses to acknowledge the current state of the red meat sector and the urgent need for direction and leadership.

“A further blow to rural communities is meat companies now exporting meat carcases for processing.

Coupled with this is the recent loss announced by Silver Farms, off a $2 billion dollar turnover, which completes a picture of terminal decline for too many in the red meat sector.”

O’Connor claims the National Government’s attempt to save the meat sector is failing.

RURAL NEWS // DECEMBER 3, 2013

NEWS 17

Rapid build-up of dairy debt expected RABOBANK’S BEN Russell says the ingredients are there for a more rapid build-up of debt in the dairy sector.

They include very good dairy prices globally, a likely record payout this year, high farmer confidence and a banking sector in strong shape and open for business.

“What we have seen is some price growth in rural land, particularly dairy farms, and we are seeing the ingredients that have in the past led to rapid debt build-up. At the moment, rural debt is growing at about 5% annualised and that is close to an acceptable level.

“The Reserve Bank will be reasonably relaxed if it

stays at that 5% or below growth rate. But in the mid-2000s we saw debt growing at something like 15-20% per annum and if it shows any signs of going back to those levels we can expect the Reserve Bank to take action.”

Russell says while the issue of farm equity is important, it’s just one part of the puzzle. More important are profitability and cashflow, but the bank wants to see a combination of a track record of practical farming, profitability and equity.

“I would agree with Federated Farmers’ view that by and large 40% equity is certainly at the lower end. There are good farmers who are operat-

ing at less than 40% equity, but once you go under 40% there is quite a [close] relationship between low equity and loan defaults.”

Russell says Rabobank believes the long term outlook for dairying is very positive, based on the bank’s analysis of strong long term demand for dairy products. Good demand for dairy products will endure during the next generation. But there will be plenty of short term volatility.

“Rabobank’s view is that global dairy commodity prices will ease in 2014-15 as more supply comes on line. For example, in New Zealand we are having a great year and production will be up.

“We also think the northern hemisphere will be ramping up production in 2014, because they have low grain prices and high commodity prices.

So we think there will be an easing of commodity prices next year.”

Russell says if the Reserve Bank raises interest rates next year and the milksolids payout drops as

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Under the terms of the sale, Fonterra acquired the processing equipment, the related services and intellectual property and trademark for the Tamar Valley Dairy brand.

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RURAL NEWS // DECEMBER 3, 2013

18 NEWS

Govt beefs-up border biosecurity PA M TI PA pamelat@ruralnews.co.nz

UNDERSTANDING THE Chinese culture better is part of an across-Government initiative – and one outcome will be better biosecurity, says Minister for Primary Industries (MPI) Nathan Guy. “A lot of the Chinese

culture is about giving of food,” Guy told Rural News at the unveiling of new airport x-ray machines to screen luggage.

“We need to understand that and we’ve worked across the whole of government – not only the airport but tourism, customs, MPI and Mfat – to understand the Chinese

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culture. We have done a lot already and we’re doing a lot more.”

Guy says they want to encourage more voluntary declarations of biosecurity risk goods at Auckland airport by Chinese passport holders.

“China is now New Zealand’s second-largest source of air passenger

arrivals. Research shows visitors from China tend to be poorly informed about New Zealand’s biosecurity laws and, therefore, are less likely to declare or dispose of risk items upon arrival.”

Initiatives to improve compliance include use of translators and electronic translating tools at risk

assessment and search areas, and self-search stations where passengers check their own luggage before official biosecurity checks.

“We are getting tougher and tougher in this space and we’ve got to educate not only these tourists but all other tourists. That’s why when you

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Their appointment means close to 100 new quarantine inspectors have joined MPI in the last 14 months,” says Guy. “Staff numbers will be further bolstered by MPI’s plans

“The new frontline recruits will strengthen New Zealand’s biosecurity frontline before the busy summer peak season. Their appointment means close to 100 new quarantine inspectors have joined MPI in the last 14 months.”

– Nathan Guy

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The 12 new x-ray machines MPI has bought for $1 million are “really modern technology”. “It is going to beef up our biosecurity system bigtime.” Five machines will be located in Auckland and the others spread around the country.”

Guy also presented official appointment certificates to 32 new quarantine inspectors and five new detector dog handlers. Sixteen will work in Auckland, eight will go to Wellington and Christchurch. Three new dog teams (handler and dog) will go to Auckland, and one will go to each of Wellington and Queenstown.

“The new frontline recruits will strengthen New Zealand’s biosecu-

to recruit a further 24 new quarantine inspectors in March next year.”

Guy says the new staff and x-ray units were not in response to criticism.

“During the global financial crisis our trade volume dropped away; we are coming through that now. We are [dealing with] about 200 countries’ $90 billion a year of imports and exports so we rely heavily on our world-leading biosecurity system.

That’s why these x-ray machines and focusing on the front line with new people is going to be really important. These will be a lot more efficient; they will pick up a lot more inside bags and suitcases.” @rural_news facebook.com/ruralnews

RURAL NEWS // DECEMBER 3, 2013

NEWS 19

Has dairy fouled farming’s nest?

P E TE R BU R K E peterb@ruralnews.co.nz

FEDERATED FARMERS national president says the “pendulum may have swung too far in terms of intensive dairying”, and its long-term impact on the environment needed looking at.

Bruce Wills says farmers in some regions may not in future be able to carry on farming as they are now because of their farms’ impact on the environment.

He told Rural News at Feds’ recent national council meeting that water is the number-one issue above all others facing his organisation. Water and environmental issues are complex due mainly to massive land-use change – especially dairy conversions – during the past ten

to fifteen years.

He has no concerns about the rise of dairying from an economic standpoint, saying the market side “is working great”.

“But the big ‘but’ is that we are now seeing, and the science is telling us, that in areas where we have intensive dairying – especially on lighter soils – we have real issues with defuse nitrogen working its way into waterways.

“The Parliamentary Commissioner for the Environment, in her latest report on water quality, highlights the issue of land use change.”

Wills says there are ‘hot spots’ where, despite the best efforts of farmers to adopt good management practices, to fence stock from waterways and do riparian planting, the science is saying ‘no’. Farm-

ers are doing their best to control effluent better, but he concedes farming must change in some regions to ensure sustainability for generations to come.

“This is the conundrum organisations like Federated Farmers and many others are grappling with at the moment. I spend most of my day trying to find the right balance between farming which pays the bills to such a large degree in many areas of the country, and protection of the environment.”

Wills says the pressure from the Government to grow agriculture from a $30 billion export industry to a $60 billion sector by 2025 is an exciting challenge. But doing this and reducing agriculture’s environmental footprint at the same time is an equally big challenge.

Onion strategy unveiled A STRATEGY to increase the profitability of New Zealand’s onion industry has been unveiled by industry body Onions New Zealand (ONZ).

ONZ chair Michael Ahern says the onion industry grew exports by 17% in the current season – compared to last year – and contributes around $90 million in export receipts.

“It is a quiet achiever in the sector.

Having secured an independent levy in the last 12 months, good progress is being made across a lot of areas not least development of the industry strategy.”

Most of the New Zealand onion crop is destined for export markets. ONZ says

Bruce Wills says farming must change in some regions to ensure future sustainability.

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RURAL NEWS // DECEMBER 3, 2013

20 NEWS

How do you like your eggs – more expensive?

PA M TI PA pamelat@ruralnews.co.nz

WHEN IT COMES to egg production, there’s a scrambled mix of competing pressures, says Farmer Brown’s general manager

bird flu on their doorstep view any free range suggestions as “nuts”.

Sutherland believes the egg industry will eventually be forced to go fully free range but he is not sure regulators have

Hamish Sutherland.

There’s a push to let chickens out of cages to enhance New Zealand’s clean, green image mainly for the dairy industry, says Sutherland. But some Asian egg customers with

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thought through the food safety implications.

Australia already has an outbreak of bird flu in New South Wales; although it’s only in the birds at this stage, the disease can migrate to humans. The bird flu started on a free range farm and spread to two neighbouring caged farms.

Sutherland was speaking at the Auckland launch of Farmer Brown’s new Colony eggs, claiming it is the first producer in New Zealand to offer this welfare-friendly and affordable egg.

Colonies provide 750cm2 cm per bird, like an open-plan home; the hens have room to move, nest, scratch, perch and interact.

The company is out to get ahead of the game as legislation requires conventional cages to be phased out by the end of 2022, to be replaced by colony, barn or free range housing. Sutherland says Farmer Brown Colony eggs meet welfare standard while maintaining the affordability of eggs for New Zealand customers.

A pack of 10 eggs will cost the same as a dozen caged eggs. He says eggs are a staple food and key

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source of protein for many New Zealanders and need to remain affordable. Farmer Brown also launched a free range option for the premium customer.

Farmer Brown owns 90% of its invested capital and controls 100% of it process.

“People talk about paddock to plate, but we start way before the paddock,” he says. They start with genetics and end with paying “millions of dollars” for people to put the eggs on the shelves and rotate them. In comparison, Sutherland says, Silver Fern farms is doing some ‘spectacular’ consumer stuff, “but they don’t know many lambs they will have in for the Christmas kill and what weight they will be. We’re actually genetics-to-egg cup.”

But controlling the whole process is capital intensive and and not everything is about

migratory birds – you’ve got a melting pot of potential disease.”

When governments think about policy they need to take into account the additional risks. When new codes were brought into the UK and Europe many family farms did not want the debt; they sold their farms for lifestyle blocks and retired.

But he knows major changes are coming. “We embrace that; we don’t necessarily agree with the timeframe but we understand that things are moving forward.”

Farmer Brown exports $10m annually to Singapore, Hong Kong, Papua New Guinea, Australia, Tahiti, New Caledonia and Rarotonga and the Cook Islands.

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When they speak to Singaporean authorities about free range, the response is “are you guys nuts?” and “have you got a death wish?”

With bird flu in Malaysia and Thailand, the only free range they are interested in has a roof and walls. Premium customers may take organic eggs but they are from caged birds fed organic feed.

For Papua New Guinea, any eggs from New Zealand, even after two weeks in transit, are welcomed in comparison to the health hazards of local eggs. But one US food company will take only free range.

Woolworths Australia is moving the same way by 2018. “But with free range farming comes risks,” says Sutherland. “When you’ve got heat and humidity,

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RURAL NEWS // DECEMBER 3, 2013

NEWS 21

Sacred cow calls economic tune P E TE R BU R K E peterb@ruralnews.co.nz

SOME SMALL rural communities now depend largely on the cow for economic survival.

That’s ONE conclusion reached by consultants Nimmo Bell about the economic effects of Horizons Regional Council’s One Plan. The study, commissioned by DairyNZ and Horizons (HRC), shows small, rural communities are now economically vulnerable to any reduction in the amount of milk produced in their regions.

The study looked at three scenarios for reducing nitrogen leaching and its attendant risk of environmental damage, while retaining economic viability in rural areas.

The first scenario involved implementing One Plan as it was handed down by the Environment Court, the study showing that farmers and their communities would in

some cases be economically devastated.

The second scenario had farmers to reducing their N loading by reducing stock numbers. This, says DairyNZ’s Dr Rick Pridmore, showed that while farmers may survive, their communities might not.

“So it’s all about the volume of milk. The important thing the study showed was that the volume of milk is as important as the profitability of the farm when you look at communities. Farmers could hunker down and meet the N targets to some extent. But… that community would have lost a lot of jobs with the lower volume of milk.

That’s why if you do a section 32 analysis or an economic assessment that looks only at farm profitability, you can make a big mistake.”

Pridmore points out that when a farmer grows milk volume he buys

in more feed and more labour, and he has more money which he is spending in his community.

“When you look at all those multipliers, the community does rather well out of higher milk volumes, but if people want to go backwards and reduce the footprint it has

big ramifications in communities like Dannevirke.”

The study shows that by holding production at present levels there are ways to take out nitrogen and improve the quality of water in rivers, Pridmore says.

“We found a solution that allowed the econ-

omy to stay ok, farmers to do ok and the river to be improved: that’s what that third scenario shows and Horizons has agreed to implement it.”

The council and farmers are now building a healthy relationship.

“The council has taken a step forward which says

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they value the community, they value farming and they value the river so we have found a solution that does all three.”

Rick Pridmore

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RURAL NEWS // DECEMBER 3, 2013

22 NEWS

Infant formula industry under pressure PA M TI PA pamelat@ruralnews.co.nz

WORKLOAD AND membership are stepping up for the Infant Nutrition Council with the big growth of the infant formula industry in the last year, says chief executive Jan Carey.

The Fonterra botulism

scare has created more work and the scope of the council’s work is widening into market and food safety reputation issues.

The council represents manufacturers and marketers on both sides of the Tasman but most membership is in New Zealand.

Membership includes all the big players and

an increasing number of smaller ones.

Carey told Rural News the Infant Nutrition Council in its advocacy role has had strong relationships with government organisations but it hasn’t had a high public profile. It is aiming to raise that profile and made a presentation recently at the Global

Food Safety Forum in Dunedin attended by Chinese and American delegates.

“Letting the rest of the world know we have a strong and influential industry association in New Zealand is important,” says Carey.

“When the council was set up it represented the

®

interests of the infant formula industry and to support the public health role in the promotion and protection of breastfeeding and in infant formula being the only suitable replacement. There’s a WHO code of purpose to our organisation.

“But the formula industry has changed in New

Zealand and so the industry association needs to change with it. There’s a raft of new issues and of new members.”

Food safety is a much bigger issue for smaller players, and was even before the botulism scare.

Supply chain integrity has become a focus and the smaller players’ way of marketing overseas is important for protecting the ‘brand New Zealand.

“We have always developed our relationship with Government and with food regulators … now we are looking at issues of trade and business development with other government bodies such as New Zealand Trade and Enterprise.”

The expanding role and new membership is putting pressure on the council. It needs to train new members in the marketing codes, process the mem-

bership and do company checks on potential members as it is committed to the code of conduct.

It also has a competitive complaints process so any issues with any company or between companies are sorted out in-house if possible.

“The members work well together on industry issues; they are a pretty united group. But they are also fierce marketing competitors so they do watch each other and their regulatory and manufacturing processes.

That’s how we selfregulate.

“If any of our members was not committed to the code of conduct we have a process of moving them out of the association, because we don’t want to bring any disrepute to our other members.” @rural_news facebook.com/ruralnews

We must get it right!

Chief executive Jan Carey says the Infant Nutrition Council’s role is expanding and membership growing.

THE BOTULISM false alarm has created more work for the Infant Nutrition Council, says chief executive Jan Carey.

“For the council there’s a concern about the perceived reputational damage and we are working with Government on a number of initiatives to reassure the Chinese consumer that New Zealand product is still high quality and safe to use.

“Some of our small members have suffered financial hardship. They’ve had their products sitting on the wharves. That is starting to turn around now but they’ve taken a big hit. We need to regroup and look at the lessons learnt and do everything we can to get that reputation back because it is absolutely deserved and warranted.

“New Zealand has one of the best dairy industries in the world, if not the best, and New Zealanders should be rightly proud of that. It is disappointing this false alarm has had such a big reaction.”

A positive vibe towards New Zealand was perceived among Global Food Safety Forum attendees and “the business door is open,” she says.

The infant formula business in New Zealand aspires to best practice not just because of commercial opportunities, but because infant formula provides nutrition to “a very vulnerable part of the population, babies, so it is vital we get it right.”

RURAL NEWS // DECEMBER 3, 2013

WORLD 23

Outback camel cull ALAN HARMAN

THE CULLING of 160,000 camels from the world’s largest feral herd has reduced a threat to the Australian outback.

The four-year, A$19 m project has left landscapes, people, industries and cultural assets safer and healthier. Until then native wildlife, pasture, water resources and cultural heritage were at risk from a growing herd numbering hundreds of thousands.

About 10,000 camels were imported to Australia between 1860 and 1907 for use as transport animals in desert country and were turned loose when motorised transport replaced them in the early 20th century.

Until then teams of about 70 camels travelled 30-40km a day. A large bull camel carried up to 600kg of cargo and smaller animals up to 400kg.

The herd populates the arid interior with 50% in Western Australia, 25% in Northern Territory and 25% in Western Queensland and northern South Australia.

Camels fitted with satellite tracking collars have been found to range across 60,000km2 and to travel 50km in a day.

Jan Ferguson, managing director of Ninti One, which ran the cull, says it cut the herds in the 18 sites targeted, especially the Simpson Desert and Pilbara regions. “As a result… native vegetation, wildlife and waterholes are in better condition over large tracts, the pastoral industry has less camel pressure on its grazing lands and Aboriginal communities have seen their cultural heritage protected.”

The population of wild camels is now estimated at 300,000 in 2009 it was about one million. The cull, action by individual landholders

A large herd of wild camels in the Australian Outback.

(Ninti One photo).

and drought and fire have all had an effect. Live camels are exported to the Middle East and Malaysia, where their meat is prized as a delicacy. Others are exported as breeding stock for Arab camel racing stables.

Ferguson says the huge cull “involved building relationships and collaboration across several state borders, government agencies, the private sector and hundreds of different landholders and Aboriginal communities. It has paid off, and shows what can be achieved when the will, the evidence and the resources are there.”

Ferguson says continued controls will be needed to keep the numbers in check. “Surveys indicate more work is required in the Surveyor Generals Corner region to reduce densities to the long-term goal of less than 0.1 animals per square kilometre – and this will require… aerial and ground culling.”

Drought, high dollar burn many Aussie livestock farmers

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producers during the year.

“It would have been a brave individual in July 2012 to fearlessly tip the sheer size of the dramatic breakout of several emerging markets to become the major export destinations for Australian beef in 2012-13.

“Few could have foreseen the combination of factors, particularly the restrictions placed on the competitive product, the local suppliers that led to a ten-fold increase in beef shipped to China during the year and the six-fold increase in the value returned.”

Allan noted that she has stepped into the role “at a time when the industry is under great pressure”. – Sudesh Kissun

er -

Allan says few would have also tipped the Australian dollar to be at $US1.05 for most of the year. This placed added pressure on exporters, dampening demand and squeezing margins. And while prices of farming inputs like fuel and fertiliser were expected to ease, they remained the same or even increased, she notes.

However, some “unpredictable occurrences” during 2012-13 have been positive for the industry: higher sheep prices and emerging markets.

Sheep prices, despite a production surge of 19%, remained higher than the previous year.

Allan also touched on the shift in the global marketplace for Australian

ip

after going through a blistering hot and dry spring and summer.

“The result was a large number of livestock grazing on rapidly deteriorating pasture and a huge number of cattle being turned off in the first half of 2013.

“The knock-off effect of this dramatic and disastrous fall in cattle prices in many categories and parts of the country was understandably missed by most of the forecasters 12 months earlier. These falls have far-reaching consequences even in this part of the world where, although the season has been much better, tradeweighted cattle prices have been 8% below their five year average.”

w

MEAT AND Livestock Australia’s new chair Michele Allan says many Australian farmers have endured a year of hardship. A crippling drought in eastern Australia affected production and a strong Australian dollar impacted returns.

Allan, the first woman and non-farmer chair of MLA, told its annual meeting last month that volatility is now a fundamental part of the industry’s business model.

“Who would have predicted in July last year that after two good seasons in eastern Australia and confidence returning by year’s end, the largest part of the country, especially in the north, would be facing weather issues

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RURAL NEWS // DECEMBER 3, 2013

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











NI

LAMB PRICES Change

c/kgCWT

P2 Steer - 300kg





 



 

  







4.55

4.32

4.65

4.25

-10

5.90

6.00

5.40

-10

5.91

6.01

5.41

Local Trade - 230kg

n/c

4.45

4.45

4.17

Mutton

MX1 - 21kg

n/c

3.60

3.60

3.20

P2 Steer - 300kg

n/c

4.32

4.32

4.00

SI Lamb

YM - 13.5kg

-10

5.88

5.98

5.11

M2 Bull - 300kg

n/c

4.18

4.18

4.00

PM - 16.0kg

-10

5.88

5.98

5.13

P2 Cow - 230kg

n/c

3.15

3.15

3.18

PX - 19.0kg

-10

5.88

5.98

5.15

M Cow - 200kg

n/c

2.95

2.95

2.95

PH - 22.0kg

-10

5.88

5.98

5.16

Local Trade - 230kg

n/c

4.35

4.35

4.18

n/c

3.38

3.38

2.85

Change

Cattle NI

+16%

Cattle SI

+19%

Cattle NZ

+17%

Bull NI

+28%

Bull SI

+40%

Str NI

+20%

Str SI

+5%

Cows NI

+7%

Cows SI

+47%

Sep

Aug

64,667 20,905 85,572 5,766 19,428 8,438 18,561 4,987

Last Year

5yr Ave

55,610

62,317

64,684

17,554

21,477

21,080

73,164

83,794

85,763

4,503

4,970

4,961

629

687

1,135

16,202

15,570

17,111

879

Mutton

MX1 - 21kg

NZ Slaughter

Total Monthly Kill

1000s







604

524

469

529

+46%

326

223

564

282

Lamb NZ

+24%

930

748

733

809

Mutton NZ

-58%

44

106

57

78

 

9,552

20,543

20,666



3,386

3,265

3,358

 





Export Market Demand

 

Change   















7.78

5.73

8.55



2.22

1.73

NZ$/kg

+4

5.55

5.51

6.00

5.37

 

  







Change





3 Wks Ago

Last Year

5yr Ave

% Returned NI

-1%

82.0%

82.6%

72.04%

73.2%

% Returned SI

-0%

75.3%

75.3%

66.7%

67.5%

   





Procurement Indicator Change



2Wks Ago

3 Wks Ago





Last Year 5yr Ave

% Returned NI

-2%

77.2%

79.7%

98.1%

70.8%

% Returned SI

-2%

75.9%

77.8%

93.4%

69.1%



2Wks Ago







7.90



2.07

Procurement Indicator





1.76

+12





 

1.33

NZ$/kg



2.07





1.82

5yr Ave

n/c



Last Year 5yr Ave

1.82

Last Year

 

2 Wks Ago

n/c

2 Wks Ago

95CL US$/lb

 

Last Week

UK Leg £/lb

Last Week



 

Last Year 5yr Ave

+15%

10,260





Aug

Lamb NI

8,065





Sep

           

 

Change



Change



Total Monthly Kill

Lamb SI

17,420

Export Market Demand



5.36

PX - 19.0kg

        

 

5.38

5.96

PH - 22.0kg



  

5.98

5.86

3.40





5.88

3.50





-10

3.50

 

PM - 16.0kg

Last Year

3.50





-10

YM - 13.5kg

2 Wks Ago

3.50





NI Lamb

Last Week

3.50

1000s



4.55

4.65

n/c

Change

c/kgCWT

n/c

NZ Slaughter



Last Year

n/c





2 Wks Ago

M Cow - 200kg SI

  

Last Week

P2 Cow - 230kg



 

n/c

M2 Bull - 300kg



LAMB MARKET TRENDS

       

 











 







 





 









 



        

 











 

  





Venison Prices











 





Change



 Beef  & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted).

Last Week

2 Wks Ago

Last Year 5yr Ave

NI Stag - 60kg

-10

6.75

6.85

7.10

7.89

SI Stag - 60kg

-10

7.10

7.20

7.60

8.34



Received cattle from a sale yard lately?

You must confirm with NAIT that the animals arrived at your property. www.nait.co.nz | info@nait.co.nz | 0800 624 843

RURAL NEWS // DECEMBER 3, 2013

NEWS

PRICE WATCH



BEEF

WOOL PRICE WATCH Change

21-Nov

14-Nov

Last Year

Coarse Xbred Indic.

-2

5.68

5.70

3.93

Fine Xbred Indicator

+5

5.84

5.79

4.68

Lamb Indicator

-

-

-

-

Mid Micron Indic.

-

7.74

-

8.58

Expect downwards pressure in beef schedules

Indicators in NZ$

Steady flows of cattle through works are reported, however there is no backlog of bookings and no stream of cattle. In recent weeks the NI has seen some good compeition to procure bull, with prices ranging for the last two weeks between $4.50-$4.60/kg. In the SI last week bulls were earning between $4.00-$4.30/kg. Prices for export steer were also still high last week; in the NI prices ranged between $4.60-$4.65/kg and in the SI they were $4.15-$4.40/kg.

With a struggling US market for bull it is unsurprising that several companies have made movements to bring the bull and steer price back. Expect to see the downwards pressure continue from here.



US market for bull meat struggling The continuing high fatty trim (50CL) price in the US is resulting in a struggling 95CL market and there shows little sign of improvement.

50CL prices are approximately 58% higher than this time last year as a result of the declining fed steer and heifer slaughter. As predictions are for slaughter to continue to decline, supplies of 50CL are going to be more scarce, implying further price rises could be possible. The result of this is that end users want very little to do with 95CL, as it requires too much 50CL for blending, subsequently demand for 85 and 90CL is gaining traction, with 90CL up between 3-5 cents/lb on last week. Imported 95 CL is trading at around US$2.07/lb at present, significantly down on the US$2.19/lb received last year.

Reports indicate that NZ should not underestimate the impact that this 50CL price is having and will continue to have on our bull meat.

While FOP’s are holding up at present due to procurement pressure, more consistent slaughter rates are established, meat companies will be looking to pull that bull price back very quickly in order to better manage margins.

Whole milk powder prices steady Prices of dairy products rose in the latest GlobalDairyTrade auction, following two auctions of declining prices. The volume sold rose to a two-month high to 52,297 tonnes. The average price for whole milk powder, the biggest product by volume, was unchanged at US$4,870/tonnes, the lowest since early July, however at seasonally high output, this is considered a good result. Continued good export demand in the world market, especially from China, is helping to clear whole milk powder offerings. Cheddar and skim milk powder both rose slightly. Reports indicate that NZ production is running abour 54% higher season to date, June through October.

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

Prev. 2 Wks

Last Year

+59

4861

4802

3982

+8

5590

5582

4136

+58

6015

5957

4136

+6

5468

5462

4840







Last 2 Wks

Change

   

 







 















  



 







 



 











Overseas Price Indicators Indicators in US$/kg

21-Nov

14-Nov

-3

4.70

4.73

+3

4.83

4.80

3.83

-

-

-

-

-

6.40

-

7.01

Fine Xbred Indicator Lamb Indicator Mid Micron Indicator

 

3.22

Indicators in US$/T









Last 2 Wks

Prev. 2 Wks

Last Year

-50

4600

4650

3375

-13

4950

4963

3375

-50

4500

4550

3950

Change

Butter

n/c

Skim Milk Powder Whole Milk Powder Cheddar



4000

4000

3250

 





 







 













 



        

 







 





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CURRENCY WATCH vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year

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0.823

0.829

0.831

0.816

Euro

0.611

0.616

0.603

0.634

UK pound

0.508

0.516

0.513

0.512

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Aus dollar

0.891

0.887

0.866

0.786

Japan yen

83.29

83.09

80.90

67.26

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Euro

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US Dollar

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 

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UK Pound 

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US dollar

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Overseas Price Indicators Last Year

Change

Coarse Xbred Indicator

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DAIRY





Downwards pressure appears on lamb prices

Numbers of store lambs traded is lifting in both islands; the beginning of December is likely to see the flow really begin. In the North, trade in paddock for 28kg male lambs was around $3.00/kg last week, and $2.85/kg for a ewe lamb. In the South prices for 28kg types are between $2.55-$2.60/kg. Prices in the SI sale yards are similar to what is quoted in paddock. In the North, however, prices at auction remain firm, and last week saw a range of $3.17 - $3.35/kg for 28kg male lambs and a range of $3.22-$3.60/kg for 24-25kg types. $3.00/kg was about the mark for ewe or mixed sex lambs at the sales.



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Store lamb numbers lift in both islands

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        

LAMB Export lamb prices are on the decline in both islands. In the NI, $6.00/kg gross is about where the market was last week, and the SI was just behind on $5.90/kg gross. There is some expectation of the bottom range sitting around $5.30-$5.50/kg, which is 50-70 c/kg up on last year and similar to the 5 year average. Mutton has been earning good money in recent weeks as the demand from China for 6 way cuts and carcasses does not dampen. In the NI $3.60/kg gross is where the market is at and $3.40/kg in the SI.

DAIRY PRICE WATCH

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 Aug

Sep

Oct

Nov

Dec

Jan

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

You can confirm animal movements: • online in the NAIT system • through your NAIT accredited information provider • by replying to the email from NAIT about the movement, or • by calling NAIT on 0800 624 843.

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RURAL NEWS // DECEMBER 3, 2013

28 AGRIBUSINESS

FRANCIS WOLFGRAM FINANCE MATTERS

Quarter

Producers price index Inputs % change from previous quarter

Sep

Dec

Mar

Jun

Sep

Sheep and beef cattle farming

-0.3

-2.0

-3.6

-1.3

0.4

Dairy cattle farming

0.3

-0.1

0.0

-0.7

0.5

Dairy Product Manufacturing

-6.8

2.7

4.5

8.6

24.1

Meat product manufacturing

2.4

-0.6

-7.8

1.3

7.5

Horticulture and fruit growing

-1.2

-0.3

-0.2

-0.8

-0.4

Cropping and other farming

-0.4

-0.9

-2.0

-2.2

0.2

Forestry and logging

1.3

0.1

-0.7

0.2

1.5

Fishing and aquaculture

-0.5

0.2

1.2

-0.6

1.9

2012

2013

-3.7

Quarter

Producers price index Inputs % change from same quarter of previous year

Sep

Dec

Mar

Jun

Sep

Sheep and beef cattle farming

6.2

0.8

-6.1

-7.0

-6.4

Dairy cattle farming

4.4

2.4

1.8

-0.5

-0.4

Dairy Product Manufacturing

-10.6

-10.3

-4.7

8.6

44.7

Meat product manufacturing

-4.7

-8.3

-10.4

-4.8

-0.1

Horticulture and fruit growing

1.4

-0.4

-1.1

-2.5

-1.6

Cropping and other farming

3.1

0.4

-3.7

-5.5

-4.9

Forestry and logging

2.5

4.1

2.8

0.9

1.0

Fishing and aquaculture

2.9

0.7

1.6

0.3

2.7

2012

2013

THE PRODUCER price index (PPI) measures the changes in prices paid and received by the producers of all goods and services in New Zealand. This represents all sectors of our primary, secondary and tertiary industries.

The two charts here isolate the main product groups that represent the New Zealand agricultural industry and the price changes for dairy and meat product manufacturing. This is to represent the connection between the production of our agricultural goods and the domestic production of the byproducts these create. The rest of the table is made up of price changes in onfarm costs for dairy, sheep and beef, horticulture, cropping, forestry and aquaculture.

The PPI measures price changes relevant to the production sector in respect of supply and use – supply being the prices producers get for goods and services (outputs) and use being the cost produc-

ers pay to use goods and services to run their businesses (inputs). This article aims to outline the changes in the costs to farming and manufacturing of some farming products so we have focused on the input side of the PPI. In the September 2013 quarter, the input PPI increased 2.2% following a 0.6 % rise in the June 2013 quarter. The latest rise was the largest since the March 2011 quarter (up 2.2 %). Dairy and meat product manufacturing contributed to 90% of the overall increase.

The input price index for dairy product manufacturing made the largest individual contribution to the rise in the input PPI. It increased 24% in the September 2013 quarter, reflecting the latest milk payout forecast and the higher cost manufacturers have to pay for raw dairy product. The input PPI increased 3.3% in the year to the September 2013 quarter – again the largest since the year to the

December 2011 quarter (up 4.2%).

For the year to the September 2013 quarter, the dairy product manufacturing industry input index increased a massive 45% and the meat product manufacturing input index rose 7.5% in the September 2013 quarter. This was the second-largest contributor to the rise in the inputs PPI, and the largest quarterly increase since the June 2010 quarter (up 8.5%).

Nearly two-thirds of the overall rise in meat product manufacturing came from higher prices for prime sheep and lamb; prime beef prices contributed nearly one-third of the overall increase.

Higher meat prices have been influenced by strong demand and lower supply.

For the year to the September 2013 quarter, the input price index for meat and meat product manufacturing showed virtually no change (down 0.1%).

This compares with a 4.7% decrease in the year to the September 2012 quarter.

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RURAL NEWS // DECEMBER 3, 2013

AGRIBUSINESS 29

Aussie dairy industry needs consolidation SUD ESH K I SSU N sudeshk@ruralnews.co.nz

FONTERRA CHAIRMAN John Wilson says the Australian dairy industry needs to consolidate.

Wilson says the co-op is watching with interest the escalating battle for listed processor Warrnambool Cheese and Butter (WCB).

Fonterra’s recent small acquisitions in Australia are about alignment, he says. The co-op paid $A46 m for a 6% stake in Bega Cheese, one of three companies tussling for control of WCB, and it bought the Tamar Valley yoghurt business from liquidators for an undisclosed sum.

Wilson points out that the fragmented domestic dairy business in Australia makes it a tough place to do business. Milk pro-

duction in Australia has dropped from 12b L to 9bL and two major supermarkets chains, Woolworths and Coles, are dictating prices of dairy products.

“Therefore it’s important for the Australian dairy industry to consolidate,” he told Rural News.

Wilson says Fonterra’s stake in Bega is a friendly investment. “We have licensing and packing arrangements with Bega Cheese. The small Tasmanian business Tamar Valley aligns with our significant yoghurt business in Australia.”

Bega Cheese is offering 1.5 Bega shares plus A$2 cash for each WCB share. With its share price hovering at A$4.70, Bega‘s offer translates to A$9.05/ share. This is set against a A$9 a share offer from Australia’s biggest milk

processor Murray Goulburn and a conditional offer of A$9.20 from Canadian dairy giant Saputo. All are counting on increasing Asian demand for dairy products.

Saputo says it will lift its takeover offer to A$9.20 per WCB share if it attains a stake in Warrnambool of 50% or more. The WCB board, which is backing Saputo’s offer, last week agreed to the conditional increase.

WCB also revoked its intention to declare a special dividend of 46c/share and an additional dividend of 85c/share, which had been subject to Saputo achieving an interest of 50% and 90% respectively.

If WCB had paid the dividends, they would have been deducted from the A$9.00 that Saputo was offering.

WCB FACT FILE ● Australia’s oldest dairy processor, making dairy products for 120 years ● Listed on ASX since 2004 ● Employs at least 480 people on sites in Allansford, Mount Gambier and Port Melbourne, Victoria ● Top brands include Sungold milk, Warrnambool cheese and Great Ocean Road cheese.

WCB chairman Terry Richardson says Saputo’s amended offer “is now very straightforward and compelling”. ”From today it is an unconditional offer of A$9.00 cash per share

with a further 20 cents cash per share if Saputo achieves an interest in more than 50% of WCB shares.

“If this price increase applies, all sharehold-

Fonterra chair John Wilson says Australia’s fragmented domestic dairy sector makes it a tough place to do business.

ers will receive the benefit of the price increase regardless of when they accept. Now that the offer is unconditional, all WCB directors and WCB executives intend to accept the amended Saputo offer without delay.”

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WCB shares were last week trading at A$9.26.

There is media speculation Murray Goulburn may increase its offer a third time in a bid to trump Saputo’s offer.

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RURAL NEWS // DECEMBER 3, 2013

30 AGRIBUSINESS

Getting phone Insurer enjoys high smart client interaction at field days

THE SMARTPHONE now has more computing power than your average five-year-old desktop computer.

The challenge many of us face is finding useful things to do with a smartphone that go beyond texting, calling and taking photos.

There are millions of apps to choose from the Apple, Andriod and Windows 8 stores. Many are useless, a few are gems.

Many smartphones also include apps and there are a variety of map applications that will do a great job of pinpointing where you are and where you want to go. While these are not as accurate as the GPS in your harvester they are close. Google maps is the standout but Nokia, Bing (Microsoft) and Apple all have good maps.

This brings you to the question of which is the best phone, Apple, Google or Windows? That’s a

bit like asking who your favorite child is. Each has benefits and offers a full solution, however they work best when you stick with one flavor, ie Apple and iCloud, Microsoft Phone and Office 365 and Google and Google Apps.

One big challenges with smartphones is actually having a connection so you can do something smart with them. This is a challenge in many areas of New Zealand, but it is getting better and many solutions exist that will boost your coverage or give you a Wi-Fi network on your farm.

So how do you get smart with your smartphone? Here are some of our favourite apps: Maps and navigation Google, Apple and Microsoft all have good map apps that allow you to save a map online, then read it while you are offline, or you can download a map via Wi-Fi. The

Notice of Election 2014 Election of Directors to the Beef + Lamb New Zealand Ltd Board Beef + Lamb New Zealand Ltd gives notice that elections will be held in 2014 for the following electoral districts: Eastern North Island

One Position

Southern South Island

One Position

Invitation for Candidate Nominations Nominations are called for candidates to stand for election for these two electoral districts. Nominations must be on the official form, which can be obtained from the Returning Officer on the Election Hotline on 0508 666 336. Nominations must be received by the Returning Officer by 5 pm on Friday 20th December 2013.

satellite view is also great; though you can’t check the crop with it it’s a cheap way to get an aerial view.

Sharing maps is also a good way to direct a contractor to exactly where you want him to spread or spray.

Find my friends This is a great way to see where your friends, family or staff are and track them or be alerted when they move. It’s a bit ‘big brother’ and maybe not ideal for tracking your prize bull but it does give you a view of where everyone is. iCloud, Dropbox and Skydrive and Drive (Google) All these cloud-based storage options allow you to store a copy of important documents, photos, etc on your device first and then synchronise them when you are able to use a faster and cheaper internet connection.

Visit www.ruralnews. co.nz • David Jackson, of Canterbury, studied at Lincoln University and has had several years’ agribusiness experience.

FARM INSURER FMG is getting ready to welcome as many 50% of its clients to its sites at the summer’s regional field days, says sponsorship and events manager Michelle Stevens.

The field days environment is relaxed and exhibitor staff get to listen to what matters most to the clients, Stevens says.

Next February and March, the folks in Southland, Northland and Wairarapa will pour into their respective field days – Waimumu, Dargaville and Feilding. Crowds up to 40,000 are not uncommon, FMG says.

“Given this kind of foot traffic it comes as no surprise that a great number of rural service providers exhibit at the Southern, Central Districts and Northland Field Days” says Northland Field Days president Lew Duggan.

“Exhibitors literally have half their clientele walking to and through their site all day. It’s a great way for businesses to connect with a lot of customers in a short time.”

FMG has been attending regional field days for some years, Stevens says. “At FMG we put people at the centre of everything we do; so for us field days are a great opportunity to get out and talk with clients and those thinking of joining us.

“Our philosophy is to give rural New Zealand a better deal, and getting out and meeting clients at events like this helps us achieve that.

YES: These ARE a ‘pistol grip’

Election Hotline: 0508 666 336 Warwick Lampp Returning Officer – Beef + Lamb New Zealand Ltd 0508 666 336 PO Box 3138, Christchurch 8140 wlampp@electionz.com

Rural News

Tel. 09 439 8998 www.northlandfielddays.co.nz

IMPORTANT CHANGES TO ARMS ACT Check your rifle/shotgun

It means any semi-automatic rifle or shotgun that has a ‘pistol grip’ will become a Military Style Semi-automatic firearm (MSSA).

To be eligible to vote, a livestock farmer must, on 30th June 2013, have owned at least 250 sheep, or 50 beef cattle, or 100 dairy cattle.

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

“While organisers will always work hard to accommodate exhibitors somewhere on the event grounds,exhibitors need to act quickly to get their preferred site and a listing in the programme and that’s where they can make themselves visible to clients” he says.

Stevens says exhibitors must be prepared for all sorts of conditions.

“These are outdoor events and you need to plan for both howling wind and scorching sun.

“Having weather contingencies will not only keep your team safe and happy, but offering shelter, water or sunscreen will also be appreciated by those visiting your site too.”

From 11 December 2013, the Arms (Military Style Semi-automatic Firearms and Import Controls) Amendment Act 2012 comes into effect.

Elections Election Day will be Thursday 27th February 2014.

Elections will be conducted by postal and internet voting and forms will be posted out in January 2014.

Livestock farmers owning at least the minimum number of livestock in either of the above two electorates should contact the Election Hotline to check if they are on the electoral roll or to get a voter registration form. To vote, you must be on the Beef + Lamb New Zealand Ltd electoral roll by 5pm on Wednesday 22nd January 2014.

“We already run a direct insurance model, which sees our mobile teams meet face to face with clients, but events like this help to build on that and on our overall brand awareness as well.

“Of course there’s a business side to it all and these events do generate leads for us – which is great. But… we like to think those leads have been generated because people have had an opportunity to sit down and talk to us about their insurance needs, giving them a good initial impression of FMG”, Stevens adds.

Given the popularity of regional field day events, Duggan urges business to book sites early so they get a location which suits their needs.

NO: These are NOT a ‘pistol grip’

If you have a MSSA under the new legislation, you must:

OR OR

• Apply to Police for an endorsement specific to that MSSA if you want to keep it • Dispose of the grip and replace it with an ‘A-Cat’ compliant stock • Dispose of the MSSA to an endorsed licence holder with a permit to procure.

For more information go to:

www.police.govt.nz

RURAL NEWS // DECEMBER 3, 2013

AGRIBUSINESS 31

Sheep jetter maker on top of world TO N Y H O P K I N SO N

A MONGOLIAN order for Electrodip portable sheep jetting machines has seen this Te Puke company add the Asian country to its list of export markets.

Company owner Martin Carey is just back from Mongolia where he showed sheep farmers there how to use the jetters.

“We have been making these jetters for 23 years and already have, established markets in Australia, UK, Ireland, India, Turkey, Uruguay, France and Romania. This was our first delivery to Mongolia,” Carey told Rural News.

The jetters were shipped to China in June, then railed to the Mongolian capital Ulan Bator. They will help improve the welfare and production of the coun-

try’s sheep farmers and their 15 million flock.

Carey says the appearance of other farm machinery he saw there suggests a major effort to improve farming methods.

Mongolia, six times the land area of New Zealand, sits landlocked ‘on top of the world’. It has three million people.

Temperatures there range from 40oC in summer to -40oC in winter.

It is bounded by Russia to the north and China to the east, south and west.

These countries have long dominated Mongolia, but after it gained independence in 1990 and established its own constitution in 1992 it has begun moving to a market economy.

Says Carey, “It has a long way to go, but it has started with massive foreign interest in its mineral wealth.

“Now efforts are being made in the agricultural sector, which is developing fast.”

Carey was approached to supply his machines, with modifications, to suit Mongolia and its animals. “We

have always prided ourselves on modifying our machines to suit customer requests,” he told Rural News.

Martin Carey, owner Electrodip, with a delegation representing the importers at the handing over of thejetters.

At your service RAW MEAT, unwrapped and in large pieces in an open topped freezer at a supermarket in Ulan Bator.

The customer on the right wanted a smaller piece so it was cut to size on an adjacent bench. In the interest of hygiene the assistant was wearing plastic gloves.

The same supermarket was offering what looked like New Zealand kiwifruit with a Zespri logo.

Closer inspection revealed a Chinese kiwifruit with a rather clever label.

Offer CLOSeS 18 December 2013

THE GER (Russian yurt) has for centuries been the traditional mobile home for the largely nomadic people of Mongolia.

But times are changing. This modern yurt has solar electricity and a satellite dish for television and communications.

But some things never change: on the left of the picture is the traditional alarm clock and security system!

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RURAL NEWS // DECEMBER 3, 2013

32 OPINION EDITORIAL

EDNA

It’s up to all of us LAST WEEK came a long-awaited – some might say long-overdue – day-long trip by secondary-school careers advisors and science teachers to see something of the technology that helps drive New Zealand’s primary sector.

These secondary teachers, all from urban schools in the Wellington region, were “blown away” by what they saw.

The sight of Bulls farmer Hew Dalrymple starting a large irrigator from the bus using his iPhone was the starting point, perhaps upstaged only by a demonstration of a tractor being guided by GPS. At Massey University they saw advances in food technology and a milking at No 4 dairy farm with its array of technology.

The agricultural sector has been quick to criticise urbanites and teachers for not directing young people along its career paths. But none of these influential teachers had ever been offered the opportunity of a farm visit like this, and some had never been in a dairy shed.

Granted, much has already been done along these lines, but of course it’s never enough, and some of the effort has gone short of coordination. Similarly, teachers have been undersupplied with the resources they need to influence young people to make agriculture a career choice.

Government and industry talk a lot about doubling primary exports, but this won’t happen if too few qualified New Zealanders step up to fill new roles and replace those retiring.

We need more action and less talk, underpinned by a smart, high-level pan-industry strategy for new and existing initiatives.

It’s wrong to blame city folk for their ignorance of rural matters. Rural sector moaning won’t achieve the necessary paradigm shift.

Instead farming, in the broadest sense, needs a well-funded, well-run education programme backed by 100% buy-in by all in the ag sector.

– Peter Burke

Rural News Group was proud to support last week’s farm experience trip to the Manawatu for secondary school science teachers and careers advisors from Wellington and the efforts to raise awareness of career opportunities for young people in the primary sector.

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

“Pack your bags! – we’re off to the duck calling champs!”

THE HOUND Same old YOUR OLD mate was not surprised at serial whingers. Fish & Game NZ greeting with yet another moan the news that Fonterra dairy farmers have fenced 90% of waterways.

Bryce Johnson, the head of Fish & Game (better called Bitch & Complain) whined, “excluding stock from waterways is only a small part of the serious problem New Zealand has with intensive dairy industry degrading freshwater”. It makes the Hound wonder if the folks at Bitch & Complain – sorry Fish & Game – are happy only when they are constantly carping (pun intended) at dairy farmers.

Want to share your opinion or gossip with the Hound?

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

Here’s how….

MEANWHILE, THIS old mutt reckons Fish & Game NZ could take a lesson from international fishing body World Fish Center (WFC) which recently teamed up with global farming body World Farmers’ Organisation (WFO) promote food security and rural development. “WFO and WFC join forces to support agricultural organisations, in the belief that farmers and fishermen are a fundamental resource for global food security,” said WFO executive director Marco Marzano de Marinis.

Perhaps (Fish & Game) could follow suit and start working with rather than against farming interests!

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Change coming?

THE HOUND understands that Fed Farmers’ recent national council heard from both David Cunliffe and Russel Norman. Your old mate is not sure if the farmer lobby is betting on a change of government next year by welcoming the would-be PM and his deputy into the lion’s den, but he had heard that neither of the aforementioned lefty politicians garnered much enthusiasm from the rank and file members attending the meeting. One attendee told yours truly that Cunliffe’s demeanour and smug attitude meant he totally suited the ‘Silent T’ moniker he has acquired.

Dog tucker

Bruised ego?

YOUR CANINE crusader is watching the current meat industry machinations and politics with interest. While the good folk at MIE are making all sorts of noble claims about returning profitability to the sector, your old mate reckons this could be more pie-in-thesky talk, following the latest annual results of the big two co-ops. For the year ended Sept 2013, Silver Fern Farms reported a net operating loss after tax of $28.6 million from total revenue of $2 billion, while Alliance Group reported a net profit after tax of $5.6 million from a turnover of $1.4 billion for the same period.

‘MOUTH OF the South’, the Farming Show host Jamie Mackay, was upset at the Hound’s dig at him in the last issue. Mackay had, it seems, tried to email yours truly to remonstrate with him over his bruised ego, but broadband issues in the kennel prevented the said email from getting through. Mackay accused the Rural News editor of being the Hound and of having a conflict of interest – adding 2 + 2 and getting 6 – due to the editor’s association with a rival radio farming show. The Hound unreservedly apologises to Mr Mackay – for spelling his surname wrong last issue! The Hound also apologises to his editor dragging him into this spat.

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ABC audited circulation 81,232 as at 30.06.2013

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 // DECEMBER 3, 2013

OPINION 33

An end to farming’s golden era THE RECENT death of Martin Finlay brings to an end an era that many saw as the golden age of farming.

It was an age that began in the 1970s and lasted into the mid 1980s.

It was a period that so many thought – or at least hoped — would last forever. It was fun being a farmer.

During those wonderful times Federated Farmers was an all-embracing organisation. It seemed every little village had its own group. Being part of the Feds was seen as an honour and the top positions were keenly sought, usually filled from the section leadership.

The ultimate honour was to be the president.

This usually meant having spent time as a section chairman. Of these the chairman of the meat

and wool section was the one with the most prestige.

Holding it all together was a Jeeves-like personality – Martin Finlay.

Solidly built, Martin looked the part, with a full head of hair, a beard and the ever-present pipe (smoking was not then seen as unacceptable).

Although he had a quiet dignity about him, Martin Finlay was the ultimate man behind the scenes, never upstaging the ‘boss.’

Especially when the boss changed every two years.

Martin’s great strength was his relaxed, laid-back style. Some felt he was not serious enough, but they soon realised the value of working with someone that was stress-free.

Martin was with Otago Federated Farmers for at least 25 years and during that time ‘looked after’ a dozen different presidents. All had their idiosyncrasies, but found it easier to work with the Finlay style than against it.

Martin’s role as Otago Federated Farmers provincial secretary was diverse: he was even involved in keeping the peace if things became grumpy.

He slotted easily into the Feds, having previously worked in the wool industry. He became an assistant wool manager with Dalgetys after gaining a wool classing diploma (first class) from

Massey University.

The wool industry in the 1970s was still a dynamic business, sale days were important occasions when growers and families came to town. However, Martin saw a more challenging future with the Feds.

The monthly Federated Farmers meetings were similar to the wool sale days, with family members often coming to town for the day. Back at the conference table the afternoon was devoted to executive business and attracted a large gathering. In fact, there were times when so many past office bearers turned up, spare chairs had to be brought in.

As a former farm editor looking back on those gatherings, I remember them as wonderful days.

Along with the

president and his deputies, there were chairmen of the different sections such as meat and wool, grain and dairy. There were delegates from specialist committees. Usually there were four journalists from print and radio. In the background orchestrating the whole operation was our own Jeeves – Martin Finlay.

His knowledge was sought throughout Otago and Wellington.

Although in the background; he was very much part of the scene. It was almost like a family gathering, with chocolate biscuits at afternoon tea.

The Otago province was where many of the

country’s most important industries evolved. These include Silver Fern Farms, Ravensdown, Farmers Mutual Insurance, hydatids eradication and Telford. It meant that Otago Federated Farmers was at the cutting edge.

But by the end of the 1980s, the free market tsunami changed life as we knew it. Subsidies of any sort would not be tolerated and the Feds enjoyed a small levy from the Meat Board. The direction from the top demanded the levy end.

The new order, along with its user-pays mentality, indicated major change for the Feds.

This was not the life that Martin enjoyed so he

resigned, leaving a gap no one has been able to fill.

The media reduced to one and inevitably branches closed.

The new-age Federated Farmers was, it seemed, all taken with centralised efficiency and spreading the workforce to where it was needed.

My old mate Ian Bathgate, as president, spent a year with Martin and then a year without him. The difference was stark. Running the office without Martin was a huge, overwhelming task.

“I never fully appreciated the workload Martin handled,” Ian said.

Martin is survived by his wife Judy and sons Mark and Jo.

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RURAL NEWS // DECEMBER 3, 2013

34 OPINION

Aussie agribusiness battles against foreign raiders THE BATTLE for Australian agriculture is on in earnest.

Farmers are digging in their heels as foreign raiders from North America try to buy our fourth-largest milk company and our largest wheat handler.

The decision on who buys Warrnambool Cheese and Butter is now in the hands of the shareholders after

Federal Treasurer Joe Hockey (acting on the advice of the Foreign Investment Review Board) gave Canadian processor Saputo the green light.

At time of print (and details change daily in this fight), Saputo was offering A$9.20 per WCB share. Our largest co-op, Murray Goulburn, and another Australian company, Bega, had

similar bids in play.

The heads of all three businesses have been running roadshows in the WCB heartland of western Victoria to win the minds (and shares) of shareholders.

A similar scenario is playing out in the grain sector, with US company Archer Daniels Midland (ADM), a global food-processing and commodities trading

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corporation, offering A$3.4 billion for grain handler, Graincorp.

GrainCorp owns and controls 280 grain elevators and grain storage capacity of 20 million tonnes all along the east coast.

Its marketing arm buys and sells 4.5 million tonnes of wheat, barley, sorghum and canola per year, servicing customers locally and internationally.

Hockey is under pressure from those for and against the sale to make a decision. Those for the sale say Australia needs foreign capital to improve the service; those against it say the shareholder will be king, and those farmers reliant on proper services will come second.

At stake in both potential foreign purchases is who will profit from Australian agriculture. Farmers will continue to farm, but they won’t benefit fully from their work.

A speaker at a recent

information night in Warrnambool told Rural News that the dairy supply chain provides enough profit for two parties, but not three.

With the farmer, the processor and the retailer all wanting their share, it’s often the farmer who misses out, not being paid enough to reinvest in the business. This is certainly the case in our domestic milk sector, where

for processing the raw product and valueadding, Australian farmers will be no more than suppliers. They will continue to be paid what the foreign-owned company dictates.

Australia won’t benefit, companies from the US and Canada will.

Our agricultural industry will mirror our mining industry – our natural resources will be sold at

Some serious thought on the future of agriculture by the Government is crucial – Murray Goulburn must be given the opportunity to compete for WCB; while the decision to allow ADM to bid for Graincorp must consider the grower interest, and not solely be made on “free market economics”.

foreign-owned processors and supermarkets are making profit at the expense of the farmer.

Local co-operatives return all profits to the farmer in the form of higher milk prices.

We hear ad nauseum that Australia will benefit from the “Asian food boom”. However, unless an Australian company is responsible

a low price for others to capitalise on.

This is at the heart of the battle, which is proving increasingly uncomfortable for a newly elected Government that is already taking a hit in opinion polls because of its diplomatic fighting with Indonesia and casual attitude over certain election promises.

When Hockey announced Saputo could bid for WCB, he declared: “Australia is open for business”. Australia seems to be the only country that likes to engage in the free market.

It’s nice in theory, but it hurts our producers in reality.

While Hockey approved Saputo’s bid within a month, Murray Goulburn will have to go through a Government process to ensure a merger would not be anticompetitive. This process could take at least 12 weeks.

“We’re not going to whinge too much about this, but it is disappointing that we find ourselves on an unlevel playing field in our country,” Murray Goulburn MD Gary Helou said.

Some serious thought on the future of agriculture by the Government is crucial – Murray Goulburn must be given the opportunity to compete for WCB; while the decision to allow ADM to bid for Graincorp must consider the grower interest, and not solely be made on “free market economics”.

These two decisions will have massive ramifications for decades. @rural_news facebook.com/ruralnews

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RURAL NEWS // DECEMBER 3, 2013

OPINION 35 MEAT PRODUCERS MUST ACT NOW FOR INDUSTRY’S FUTURE BEING A farmer’s son and a Lincoln graduate (albeit long urbanised), I take a keen interest in New Zealand’s rural sector.

The growth in our dairy sector in the last 20 years is impressive, and we can be proud of the industry’s success and the economic benefits that have accrued.

But I’m not sure we want to see the entire country turned into a succession of ‘factories on grass’.

Then there’s the ongoing decline of the meat industry. New Zealand needs and deserves a robust and sustainable meat industry.

Do we want New Zealand to be one giant dairy farm?

The meat industry’s biggest problem would seem to be over-capacity – too many meat works for not enough stock. No industry survival plan will succeed without finding a

solution to this. However, as an outsider looking in, I get the impression of the meat industry that everyone wants to go to heaven, but no-one wants to die first.

The industry could go through a US Governmenttype shut-down/stand-off situation through sheer bloody-mindedness, and the unwillingness of the stakeholders to see the big picture for the indus-

try’s long-term sustainable prosperity.

With the forthcoming co-op elections, shareholders have opportunity to influence the direction of their industry and future. I still know many sheep and beef farmers where I grew up and hope they take the chance to vote and take ownership in that future.

Hugh Blaikie Herne Bay Auckland

INTERESTING LINK THE ITEM on black beetle (Rural News, Nov 19, p33) is interesting, as it shows a long term remedy against black beetle.

I have found much the same applies to grass grub. My observation is that if one has good values of calcium and magnesium in the soil, one has good populations of earth worms. I have yet to see good populations of earthworms with problem levels of grass grubs in 50 years of observation.

One can do something with soil amendment, but one can’t alter the rhythm of the Southern Oscillation.

By my reckoning, the next strong El Nino seasons will be 2020 and 2022. I started taking an interest in weather rhythms 46 years ago for the purpose of making hay in dry weather.

Peter Bacchus RD1 Palmerston North

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all jwilsonfonterra: Thanks to Fonterra shareholders for the $1K pay rise which now takes my annual pay to a mere $450k a year and somewhere near that magical ‘living wage’ everyone is talking about #ifeeltheirpain leonieguineyantitaf: Well, well @jwilsonfonterra I always knew it would be those people with little or no benefit to the co-op who would do well out of TAF. Now we know who that is? #cannotletitgo jwilsonfonterra@leonieguineyantitaf: And it had been such a quiet year on the TAF front with you away in Ireland for most of it! You haven’t thought of emigrating permanently have you? #onewayticket johnmcarthymie: Both SFF and Alliance’s boards are set for a shakeup with united and focused MIE candidates standing for election this month. Change is coming! #soischristmas danjexblakeexmie: Let me be clear: MIE’s position is unambiguous; we either see a merger between the co-ops or it’s all over! #miemessage1 richardyoungexmie: Can I reinforce that MIE is not wedded to the demand that the meat co-ops must merge. A merger is not the be-all and end-all of the meat industry! #miemessage2 eiongardensff: I can now really enjoy my retirement after turning around last year’s disastrous $31 million deficit to a far more respectable $28.6m loss for this year. #gettingoutontop

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RURAL NEWS // DECEMBER 3, 2013

36 MANAGEMENT

Simple steps to zone management The Foundation for Arable Research held its first major field day of the season late last month, a three-stop tour of its South Canterbury sites.

Andrew Swallow reports.

SHOULD YOU be tweaking inputs as you, or your machines, traverse your paddocks?

Foundation for Arable Research field day guest speaker Armin Werner, of Lincoln Agritech, suggests three ‘rules of thumb’ to determine whether such zonal management is worthwhile (see box).

“If you have fields that fit those criteria then you should at least be thinking about trying zoning,” he said, suggesting a high, low and medium zone approach as a simple starting point.

That could be done

from yield maps or simply from the in-depth historic knowledge of paddocks most farmers accumulate.

Another way might be EM [electro-magnetic] mapping of soil, which correlates with water holding capacity.“It’s a cheap one because it’s very fast,” he noted.

Once a map with zones is produced, it can be used to alter input rates for seeds, fertilisers and other inputs. While low yielding areas typically require less phosphate or potash fertiliser because less is removed from the soil with the crop, with nitro-

ZONE 'RULES OF THUMB'

gen the reverse may be true, and higher • Is paddock >10ha? nitrogen rates on • Does yield vary >30%? those areas may go some way to bring• Will zoned areas be >20% of paddock? ing yields up, as FAR capacity, but said at best trials had shown. extra organic matter might he added.

However, that would Fellow field day add 20% water holddepend on the limitspeaker, North Otago ing which for a soil with a ing factor for yield, and farmer Pete Mitchell, potential 100mm of plant Werner stressed often available water, would still explained why water, or that is water. “The physrather variable rate irrigaonly be an extra 20mm. ical property that’s the tion, is where they started In some areas of Germost important and that you can’t change is the soil many, Werner’s homeland, with zone management.

Of seed, chemical farmers rely completely on water storage capacity.” and fertiliser, water was yield maps for their zone Challenged on that, the greatest cost – about management because he acknowledged organic $800/ha if they applied matter could be increased every year they have dry 200mm; and when they summers and water is by management, and investigated the potential always the limiting factor, hence water holding

Armin Werner (right) discusses his zoning suggetsions with growers at FAR’s field day.

payback from varying irrigation rates it offered the quickest return.

As such it best fitted their decision ‘tree’ for zonal management, which prioritises projects by the expense of the inputs involved, the likely time to payback on adopting a zoned approach, and productivity gains that might be achieved.

Mitchell says they’ve

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EM mapping of the soils under irrigation revealed water holding capacity ranging from 34mm to 114mm, yet they’d been using a uniform water rate right TO PAGE 37

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RURAL NEWS // DECEMBER 3, 2013

MANAGEMENT 37

Cultivars and take-all risk WHAT’S THE best cultivar to grow as a second wheat? And if you’re going to grow second wheat, what’s the best first wheat to optimise production over the two years the paddock’s down to the crop?

Plant and Food Research’s Matthew Cromey relayed to the field day crowd the findings of FAR-lead trials in South Canterbury which are starting to answer those perennial questions, for today’s cultivars at least.

“The difficulty is cultivars change quite rapidly, and take-all is quite a patchy disease,” he told Rural News after the field day.

Results from take-all (guamanomyces graminis, var tritici) inoculated plots suggest Consort and Wakanui have some tolerance to the root rotting fungus so may be good choices as second wheats.

However, Wakanui as a first wheat left the highest take-all inoculum of

the nine cultivars trialled, suggesting that if a second wheat is planned, it wouldn’t be the best choice as the first wheat.

Conquest and Consort left similarly high inoculum so are probably best avoided too if a second wheat is likely to follow.

At the other end of the spectrum, Sage and Oakley left low inoculum, suggesting they could be good first wheats where a second wheat will be the next crop.

The work also indicates cultivar choice may be a way to manipulate the phenomenon of takeall decline, where disease severity peaks in second or third wheats or other susceptible cereals, then reduces to a moderate level in subsequent wheats thanks to the natural build up of bacteria in the soil which are antagonistic to the take-all fungus.

Cromey found populations of take-all antagonistic bacteria highest following Conquest and

Simple steps FROM PAGE 36

around the pivot. By tuning irrigation to soil water holding capacity they’ve since slashed water take from 3L/ second to a maximum 24L/ second, a 27% saving, and sometimes as low 11L/ second.

Also, by avoiding overwatering, it’s saved labour because pivots no longer get stuck on hills and it’s eliminated the environmental, not to mention consent-breaching, problem of run-off.

Based just on that reduced maximum take, the saving is $216/ha, or about $18,000 on the area covered by the modified 510m pivot, Mitchell calculates.

With a cost of about $100/m of pivot to fit the variable rate technology and install the necessary control software, the payback will be threefive years based on saving alone.

“But you’ve got to have

someone with a passion for it to drive [the installation] for you because it is quite complicated,” he warns.

Mitchell’s also had soil grid sampled to identify and remedy pH, phosphate and potash variation, in one area saving $170/ha on phosphate fertiliser, though in another an extra $10/ha was needed to raise pH. Werner stressed that variability within a paddock, particularly as paddocks are made bigger to accommodate modern machinery and increase work rates, can be as great as across 20,000ha. “This we have to face and we have to handle.”

He says in Australia already at least 50% of cereal growers are using variable rate application for fertiliser and at least 30% are varying seed-rate within paddocks, albeit across typically much larger paddocks than New Zealand’s.

Wakanui, suggesting that rapid buildup of take-all inoculum in those cultivars also results in rapid buildup of the bacteria which prey on it, accelerating take-all decline.

Plough proves place One of the more visually striking results on view at FAR’s Temuka site was a herbicide and cultivation interaction trial in wheat. For the third year running pre-emergence herbicides struggled to control volunteer ryegrass, despite two pre-cultivation applications of glyphosate, in all plots except those ploughed.

“What it’s really saying is when you get to the plough, you’ve got no ryegrass,” noted FAR’s Nick Poole.

In Western Australia where herbicide resistant weeds are rife growers are using the plough to “reset the clock” on weed control, burying seeds by ploughing once, and then not ploughing again for years, he added.

“We’re not immune from getting [herbicide] resistance which is why we’ve tried to build up this database of cultural controls for these weeds.”

Of the pre-em herbicides used, a coded product from Bayer which, subject to EPA approval, will be available next year, looked particularly promising offering considerably better control than current standard Firebird.

RURAL NEWS // DECEMBER 3, 2013

38 MANAGEMENT

Boosting beef without Subdivision has brought one Far North couple improved farm production and increased profit without recourse to borrowing, a Beef + Lamb New Zealand field day late last month heard.

Gareth Gillatt reports.

STEPHEN AND Jane Hayes run 348 sheep and 734 cattle on their 583ha property near Kaeo, just north of the Bay of Islands. For the past three years they’ve been Beef + Lamb New Zealand’s Far North monitor farm during which time they’ve lifted gross farm revenue $43,850, not to mention having better pasture covers and stock condition across the farm.

Stocking rate’s been lifted from 8.5SU/ha in 2011 to 9.7SU/ha. That’s despite initial concerns that stock weren’t getting enough to grow properly

as it was in 2011.

“I didn’t feel we were doing a good enough job of feeding the animals we had without adding on more,” Jane commented to the field day.

But with the help of the monitor farm management team, the Hayes have lifted production by subdividing and increasing finishing stock numbers.

While the farm has 400ha in pasture but only a small portion on river flats and a plateau was suitable for subdivision.

The couple trialed two forms, one developed by

Kawakawa farmers Geff and Dinah Cookson and another by Arapohue farmer, John Blackwell.

The Cookson system creates 1ha sections with permanent wires, and if necessary, smaller areas with temporary fencing.

Stock are moved every one to two days.

Under the Blackwell system small mobs are held on sections of less than 0.5ha. Stock are shifted by temporarily lowering fences.

Hayes says she enjoyed using the Cookson system over the Blackwell model as there was less daily

work.

The subdivision has allowed them to carry more cattle than previously and they’re increasingly focusing on finishing rather than selling store.

In July 2011 they were carrying 44 10-month-old heifers but increased that to 39 spring born R2 and 80 spring born R1 heifers in July 2012. By July 2013 they had 183 heifers and with a range of ages they’re proving a useful pressure valve, keeping pasture quality high but with options to offload throughout the year.

Far north monitor farmers Stephen and Jane Hayes.

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borrowing Autumn born bulls will be marketed in late spring or summer depending on feed.

Hayes says there were some difficulties managing heifers through the drought. They had planned to market 60 autumn-born R2s at the end of autumn but needed to carry them through to spring due to insufficient weight gain. They’ll all be gone this month.

The farm carried 105 steers as of July 2013, 46 more than two seasons ago. They planned to offload them all by the end of last month to make room for bulls.

Heifers get the bulk of the new grass with the 150-head breeding herd tidying up behind. Hayes

say they have done an excellent job, getting rid of pasture problems like carrot weed. However, they found the cows struggled to maintain condition through winter so last season the took the Monitor farm management team’s advice and delayed start of calving three weeks to better match seasonal grass growth.

While most calves won’t be ready for traditional weaner sales in March, Monitor Farm facilitator Gareth Baynham says it will mean the business earns more.

Thanks to subdivision and tighter grazing control the farm’s now producing much more pasture. At the field day they had 14ha

Mob stocking deals to carrot weed GA RE T H G I LLAT T

MOB STOCKING pasture is the best way to keep problem weed Parsley Dropwort under control, a Beef + Lamb New Zealand study in Northland has found.

Parsley dropwort, or carrot weed as it is commonly known, is found in Northland, Auckland, Waikato and Chris Boom Coromandel. It’s invasive, unpalatable, and prevents stock getting to more valuable feed sources.

A one-year study was carried out on Stephen and Jane Hayes’ farm (see opposite) to see which of the common control methods – spraying, heavy stocking, or topping – is most effective, and whether undersowing with Italian ryegrass could help.

Sections of infested paddock were sprayed in June or left untreated, with drill or no-drill treatments overlayed, followed by further boom or spot sprays, or untreated, in September.

Monitor farm facilitator Chris Boom says hammering infested pastures with stock in September-October proved most effective. Sheep did the best job, but Boom notes cows, especially older cows, ate and grew well off it provided the weed was still growing.

“There’s a huge difference between stuff that’s got a full-blown head and stuff that’s just coming out,” he says.

“The young stuff is actually really good quality: it’s just as good as clover.”

The Hayes say an iron-sand paddock next to the trial which was just as infested was completely clear after mob stocking in the same way as the trial. It was used as a birthing paddock with 1000 ewes on it.

The study found spray 2,4-D could also help, either boom sprayed in June, or boom and spot sprayed in September.

However, there was a marked reduction in the percentage of legumes in pasture. This was especially noticeable in August where patches sprayed in June had just 7% legume remaining compared to 18% in control plots.

Seeding with Italian ryegrass didn’t seem to help, which Boom suggests was due to a tight sward of other pasture varieties.

shut-up for silage which was due to be cut by the start of this month.

The subdivision and stock increases have been gradual, which Baynham says has met the Hayes’ objective of funding development from

profit, rather than capital borrowing.

The full benefits of the changes will be long-term, he adds.

“It would be interesting to come back to the farm in six years and see how things are going.”

MANAGEMENT 39 Contract labour solution When the Hayes became monitor farmers in October 2011 a goal was to build the business to the point where they could afford an extra fulltime labour unit, as a way of futureproofing the business.

However, they’ve found temporary workers fit as well, if not better.

For example, they hired a person specifically to shift fences for the

nurse herd on the intensive beef operation. “They had their own bike and they knew exactly what they were doing.”

The couple have also hired gorse sprayers and scrub cutters.

They say the contract approach helps keep tight control of project costs and eliminates the ongoing cost a permanent position creates.

RURAL NEWS // DECEMBER 3, 2013

40 ANIMAL HEALTH

Antibiotic use in spotlight A N D REW SWA LLOW andrews@ruralnews.co.nz

VETS HAVE called on rural New Zealand communities to work with them to ensure antimicrobial medicines are used wisely.

In a statement to mark International Antibiotic Awareness Week (Nov 18-24) the New Zealand Veterinary Association said it was timely to remind New Zealanders of the threat of resistance.

“After more than seventy years since the first use of penicillin in human medicine there are a number of bacteria in circulation across the world that are resistant to one or more antimicrobial drugs,” says NZVA president Dr Steve Merchant.

“Animal and human health have always been

interlinked, and bacteria resistant to drug therapy can be passed from animals to humans, and vice versa. Therefore veterinarians and human health physicians have an obligation to continue to work together on this key issue.”

Merchant told Rural News a lot more information needs to be gathered in New Zealand to assess the risk and possible incidence of resistance to antimicrobials here.

Besides the potential for resistance to render products ineffective, which raises animal welfare and production considerations, there’s a danger that products effective as animal health remedies may be withdrawn by “the powers that be” if there’s correlation, or even just a concern of a correlation,

between veterinary use and human [pathogen] resistance, he adds.

That’s particularly the case with drugs used in food producing animals such as dairy cows, beef animals and lambs, he notes.

To mitigate those risks, inappropriate use of antibiotics in farming – either because the antibiotic isn’t the best for that purpose, or because alternative methods of treatment or prevention could have prevented the need for the antibiotic – should be avoided.

“For example, using dry cow therapy because of poor hygiene: that sort of thing may mean we don’t have access to products in the future.”

The right product for the right disease is also a key. There have always been antibiotics that don’t

Don’t infect or expect – do protect

Dr Steve Merchant

work, or don’t work well, against certain pathogens. In some cases it may be that an older, probably cheaper product is the best to use, without going to the ‘top-shelf’ range.

Equally, there will be times where the cheapest and easiest-to-use product isn’t the most appropriate.

Merchant stresses the importance of working with the vet, not just asking for the prescription.

“Consumer demand for antimicrobials to treat

animal disease must be balanced by client/consumer education [including pet owners, as well as farmers and farm managers] to protect against poor or ineffective use which can encourage resistance to develop….

Veterinarians play the predominant role here, supported by industry and regulators to ensure consistent messages are delivered.”

EUROPE NOMINATES November 18 as European Antibiotic Awareness Day and the British Veterinary Association (BVA) issued animal owners a reminder similar to the NZVA’s, with the message ‘Don’t Infect, Don’t Expect, Do Protect’.

Don’t infect – keep animals healthy through preventive treatment, good nutrition and hygiene Don’t expect – like in human health not every illness requires antibiotics Do protect – antibiotics must be used according to instructions on the label and a course must be completed even if the animal is getting better.

“Our simple message ‘Don’t Infect, Don’t Expect, Do Protect’ should help owners follow good practice and ensure antibiotics continue to work for all animals and humans,” says BVA past president Peter Jones.

The BVA says the problem of antibiotic-resistant bugs in humans is primarily the result of antibiotic use in people, rather than veterinary use, but animal use is an important factor contributing to the wider pool of resistance.

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They’ve developed “The oCelloScope tests that cut the time is undergoing constant to identify which antidevelopment,” says biotic is best, and at researcher Marlene Fredwhat dose, for a given borg. “Based on its potenSmart tool: the oCelloScope. bacterial infection tial we expect to be able to from 16-24 hours to map the resistance profile 2-4 hours, and even less in future. of a bacterium significantly faster than It means doctors and veterinarians two hours. will be better able to target treatments, – Alan Harman

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RURAL NEWS // DECEMBER 3, 2013

ANIMAL HEALTH 41

Mandatory BVD controls unlikely A N D REW SWA LLOW andrews@ruralnews.co.nz

A COMPULSORY control programme for Bovine Viral Diarrhoea (BVD) in New Zealand is unlikely in the near future despite a growing number of nations, mostly European, adopting such measures, says the chairman of a national steering committee on the disease.

Speaking to Rural News in the wake of Scotland’s move to mandatory testing and movement restrictions related to the disease, Roger Ellison said the focus here remains firmly on voluntary measures.

“At the moment we don’t believe the industry appetite for regulatory control is there. If we were to go down that route all the industry bodies like Dairy NZ, Beef + Lamb New Zealand, OSPRI and MPI would have to be on board.”

The measures Scotland’s introduced (see sidebar) are similar to those deployed on TB here.

Ellison notes the TBfree programme is industry funded and so any similar programme for BVD would have to be as well.

“And as soon as you start to talk funding; you have to have a pretty strong case.”

Since the steering committee was formed in 2005, industry knowledge about the disease has improved

considerably with many farms, particularly dairy, now aware of their herd’s status.

“The interest has jumped but there’s still much work to do in terms of knowledge transfer.”

Vets have similarly made “huge gains in their understanding of the disease and knowledge of how to control it,” he adds.

For farmers a key and timely message is to make sure bulls are both tested and vaccinated for BVD before bringing them onto the farm. Ellison explains vaccination is still needed because of the risk of bulls picking up infection before arrival on the user’s farm.

Such a recent infection not only risks importing the disease, but renders the bull temporarily infertile so it won’t do its job.

“The number one rule is: test and vaccinate all bulls.”

Nationally, about 15% of dairy herds include ‘persistent infectors’ or PIs, while it’s estimated 50-60% of beef herds contain PI cows.

“The key difference with beef herds is the calves are left on the cows, so you can have PI calves running around with adult cows during mating.”

That matters because infection in the first four months of pregnancy is what gives rise to a PI calf, perpetuating the disease’s presence. That is, if it sur-

vives: infection of the cow during pregnancy can also cause abortion and the calves that do survive generally suffer from ill-thrift.

In an average-sized dairy herd, circa 380 cows,

Bulls: get them tested and vaccinated for BVD before bringing onto the farm, says BVD committee chair Roger Ellison.

it’s estimated the disease costs about $70,000/year in lost production and calves, while for beef herds it’s “anywhere between $3000 and $9000/year per 100 cows,” notes Ellison.

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The Scottish Government, last month, announced it would introduce ‘phase 3’ of its BVD eradication programme, movement controls, from January.

Herd testing for the disease has been mandatory since February 1 with over 90% compliance achieved by that date. About 80% tested negative, indicating about 20% infection – lower than anticipated – which was interpreted as “a strong indication” farmers were already taking steps to eliminate the disease.

Aberdeenshire, on the northeast coast, and the far southwest, a strong dairy region, had the highest rates of infection – with 50-60% of herds infected.

From January 2014, moving a known Persistently Infected (PI) or transiently infected (TI) beast in Scotland will be an offence and declarations of herd status for BVD will be required prior to sales.

Movement restrictions will also be imposed on holdings if the keeper of the animals fails to meet mandatory testing requirements.

Further movement restrictions associated with the disease may be introduced from December 2014.

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42 ANIMAL HEALTH

Ospri changes to clear C2 confusion ANDREW SWAL LOW

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NEWLY FORMED herds, or drystock herds, are no longer to be classified C2 for TB status, says OSPRI, the body responsible for NAIT and TBfree.

A letter to herd owners last month informed drystock herd owners that their herds were to be classified CM, standing for ‘clear monitored’, from November 25, and new herds classified as S, for ‘suspended’ status.

The exception to S status would be if any animals came from an infected herd, in which case an I – for ‘infected’ – status would apply.

New herds must be tested within a year of registration and once tested clear, will become C2 herds. The exception to that is if all ASDs for stock forming the new herd can be produced, in which case the status will be the lowest recorded on the ASDs. Thereafter status increases numerically, annually, ie C3, C4, C5 etc, assuming tests remain clear.

Previously C2 status also applied to all dry herds, previously infected herds clear of TB for two years, and new herds, which was creating confusion, OSPRI said.

A herd’s clear status will be changed to suspended (ie S) if TB is suspected, until testing confirms infection or otherwise. A herd’s status could also change to suspended due to receiving stock from an infected herd, or if established from sources with an unknown TB status, or if testing obligations are not met.

CM herds will periodically be assessed by questioning owners/ managers to establish whether testing is required.

Typically such herds are effectively monitored by surveillance of animals sent for slaughter, but where that’s not the case, such as with dairy grazers, some on-farm testing may be required.

Ospri in a media statement last week outlined the changes and encouraged farmers and lifestylers to get cattle and deer tested for bovine tuberculosis (TB) as soon as they registered with TBfree New Zealand.

Even one animal constitutes a herd and needs to be registered, it said.

Ospri’s group manager for programme design and operations,

Stu Hutchings, told Rural News the changes were not a result of recent cases thought to be due to stock movements, such as those in Taranaki and South Canterbury.

While the Taranaki cases look likely to have originated from the Nelson area, no definitive link has been established yet, nor have the South Canterbury cases been proven to have come from the West Coast, as suspected. “At this stage there are indications [of the origin] but these have not been confirmed,” Hutchings said.

The recent Taranaki, Waikato, Northland, and Canterbury cases, plus a new infection at Waiuku, south of Auckland, have pushed the number of herds classified as infected up from a low in the 70s to exactly 100 as of last week.

Hutchings says the status changes will help minimise the risk of buying stock that may not have been TB tested. A C2 status indicates the herd has definitely passed a routine TB test. C1 would indicate one year clear of infection.

KEY POINTS

• Drystock herds now CM status • New S status indicates “suspended”, awaiting testing.

• All ‘herds’, even sole animals, must be registered: call 0800 482 4636 or go to www.tbfree.org.nz

ASD FOR M R EM I N D ER

Drystock herds are now CM, not C2.

Ospri also reminded herd owners ASD forms must be the new version with a box for NAIT numbers top right (Rural News, Nov 5). New forms may be downloaded or ordered from www.tbfree.org.nz

RURAL NEWS // DECEMBER 3, 2013

ANIMAL HEALTH 43

Work out worm strategy now A N D REW SWA LLOW andrews@ruralnews.co.nz

PLAN YOUR worm control strategy using grazing management, combination drenches, refugia and an exit drench to minimise production losses and resistance risk.

Those were among the key points national Wormwise spokesman Trevor Cook made to listeners on Beef + Lamb New Zealand’s latest Scene and Herd conference call.

“Not enough of this is done on farm: sitting down early in the season and saying what expectation [of worm challenge] do we have for lambs, and calves come to that.”

Larval challenge will depend on what, when and where these susceptible classes of stock are grazing, he explained. Weaned lambs going back onto paddocks used for lambing will likely face a high challenge; those going onto paddocks grazed by finishing cattle much less.

If at all possible, high challenge situations

should be avoided.

“Where there is a high challenge no amount of drenching is going to prevent that impacting on liveweight gain,” he warned.

A good time to faecal egg count is four weeks after lambs or calves go onto feed that’s expected to pose a low challenge, including crop, as a check that the reality is matching the expectation.

For example, on crop, which “does take a lot of the worm challenge out”, lambs and calves will graze grass to the dirt on the paddock perimeter while they become accustomed to the new feed, and in doing so may face a considerable challenge.

“So it’s not uncommon to see a worm burden establish early on when they go onto crop but as time goes on it should go down and down.”

When drenching, a combination is a must to minimise the rate of resistance build up, and a combination that is known to be effective on the farm’s parasite population.

COOK'S TIPS

• Plan grazing to minimise challenge.

• Plan drenching around grazing and resistance status.

• Faecal egg counts to check plan’s working.

• Reduction test to determine resistance status.

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The problem is, few farms know the resistance status of the parasites present, says Cook.

“We’d be lucky if 10% of farms have done a faecal egg count reduction test (FECRT). It’s vital when you come to making drench decisions. Without that information you can’t be making the best choice. You should always be using a combination but you’ve got options and you’ll only know which are the best options if you know what works and what doesn’t.”

For farms buying trading stock for finishing, and consequently at high risk of resistance, he recommends a reduction test is done at least every three years. For breeding properties where only rams and bulls are imported, once every five years should suffice.

Whatever the farm type, weaning is a good time to do the reduction test because faecal egg counts are usually high, with most worm species present, whereas later in the season one species or another – which will depend on region – will tend to dominate.

In cattle, go for when rearer calves hit 100kg, or with beef calves on their mothers, when they’re weaned, says Cook. He warns against relying on visual signs of resistance.

“What you don’t realise is that the drench has to be failing badly before you see something by eye that says ‘it’s not working’.”

In some cases 50-60% failures haven’t been spotted, he notes.

The efficacy of the drench combination used is fundamental in determining numbers to leave untreated to create refugia. With fully effective drenches only one or two animals untreated in every hundred will stave off resistance indefinitely, it’s been calculated, but as soon as efficacy starts to slip, the untreated requirement rises rapidly just to maintain the status quo.

While the refugia principle has had good uptake on sheep farms, few cattle farmers, including dairy graziers, are deploying it, Cook notes.

That’s despite the

Weaning is a good time to get a reduction test done, says Wormwise spokesman Trevor Cook.

use of pour-ons in cattle hiking the risk of resistance developing, if it’s not

already present.

“We do know a lot about worm management

but we don’t have enough farms applying what we know.”

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RURAL NEWS // DECEMBER 3, 2013

44 MACHINERY & PRODUCTS

More accuracy in fert spreading ELECTRONIC MASS control (EMC) on Kuhn hydraulic-drive Axis fert spreaders, and new GPSlinked technology, raises the machines’ performance at headlands and field corners, says the New

Zealand distributor.

First introduced on Axera hydraulic drive spreaders, the EMC system is available on Axis models arriving in New Zealand early in 2014.

EMC refers to constant

measurement of mass flow (kg/min) at the point of application, independently at each disc. This allows the machine to continually adjust its aperture size to maintain a target application rate. This is

achieved on hydraulic drive machines by monitoring the pressure in each of the hydraulic motors driving the discs, then correlating this pressure with the actual mass flow.

Measurements are taken and monitored every second, enabling almost instantaneous adjustment of actuator/aperture positions to either side of the machine in response to changes in fertiliser flowability (as may be caused by a partial blockage for example).

Similarly, because application rate is a function of forward speed, disc speed and working width,

any changes to these parameters are managed by the machine’s information system to allow adjustment on the move and the maintenance of the target application rate.

The EMC system avoids the need for conventional static calibration testing, since the machine makes the adjustments

automatically from simple pre-programmed data.

Thus 100% of settings are done in the tractor cab.

The advantages of EMC over conventional weigh cell systems is that of providing data on and control of each side of the machine independently, and maintaining accuracy in hilly conditions.

Meanwhile for all Axis models with a GPS link, the new Opti Point system will further improve fert spreading accuracy, Kuhn says.

“Opti Point automatically controls aperture opening and closing at the headlands to minimise over- or under-application.”

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The product is the company’s first move into piping, building on its knowledge of plastics through tank construction.

“Expertise built up over 40 years convinced us we could produce and deliver a better alternative to what is currently available,” Bailey says.

He refers to a migration from concrete to plastic for farm drainage

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The culverts’ flexibility prevents cracking when the ground moves.

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MACHINERY & PRODUCTS 45

Top notch chop!

CHOP QUALITY is more uniform and throughput better from New Holland’s new FR series harvesters because of an all-new chopper body, says local marketer CB Norwood Distributors Ltd. The range has five models of 424-824hp. New features include a high performance grass pickup header. All models in the FR range are compatible with a wide range of headers.

“The FR has the latest advances in blower design, which have optimised crop transfer from the cutterhead to the processor and trailer, even when working in the lightest grass crops.

“The paddle type blower has increased the mass of smooth flowing air by 40% to transport higher volumes of crop more efficiently and to reduce the risk of crop accumulation in the chopper body area for much less crop build-up,

reducing maintenance demands.”

Because the optimum harvesting window for guaranteed nutritious silage is tight, the new 300FP grass pick-up was developed for higher speed, reliable, smooth harvesting in all conditions. The 3.0m-wide pickup makes light work of even the widest grass swaths.

The pickup tine reel now has five tine bars instead of four, enabling higher ground speeds, “perfect when working in unstable climatic conditions or for operators looking to increase productivity and profitability”.

When working in muddy fields, the pickup support wheels prevent bulldozing and maintain uniform header height.

Sturdy reinforced steel tines (replacing the rubber mounted tines) reduce tine breakage even in

uneven fields or in stony conditions, the company says.

Cab access is said to be easy and the operator platform has been widened with sculpted hand rails for safe entry and exit.

The side panels open wide as a single unit on self-supporting gas struts for easy servicing access.

Daily maintenance has been further simplified by advances in feed roll packaging. The entire area has been sealed with the addition of precision placed plates which form a protective seal around the feed roller to prevent the build-up of debris, which can substantially reduce cleaning.

Chop quality is better from New Holland’s new FR series harvesters the company says.

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The automatic spout guidance will consistently reduce crop spillage increasing the forage harvesters’ overall quality of work.

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RURAL NEWS // DECEMBER 3, 2013

46 MACHINERY & PRODUCTS Weed-free brassicas leads to better yields BETTER BRASSICA yields are resulting from a “simple weed management system” embodied in PGG Wrightson Seeds’ Cleancrop Brassica System, the company reports.

It set out to deal with problem weeds commonly found in brassica crops. The weeds compete with brassica, decreasing yield production and choking profits.

Says PGGW, “The Cleancrop Brassica System is a traditionally bred her-

bicide-tolerant (HT) cropping system that combines HT brassica seed, Dupont Telar (a broad spectrum herbicide) and a best practice guide to maximise on farm performance.”

The system offers a choice of four different brassicas: HT swede, rape, bulb turnip and leafy turnip.

The HT swede was retailed for the first time in spring 2012 and its uptake by farmers prompted Melissa Sowden, from PGG Wrightson Seeds, to run an

HT swede competition.

Entries ranged geographically from Lee Steam, Otago to Te Anau, Southland. The top five entries (four in Southland and one in South Otago) were judged on the yield of the crops by taking wet-weight samples of leaf and bulb, and drying them to ascertain actual DM percentages.

The winners of the competition were Aron and Lisa Perkins, from Ironwood, located in Waikana, Southland.

They run a sheep, beef and dairy support farm.

“The Perkins had an exceptional swede crop weighing 18 tonnes DM/ ha,” Sowden says. “The crop produced fantastic sized bulbs.

“The swede crop was impressive and some of its success was attributed to 200kg DAP/ha banded with the seed at sowing, ensuring the crop got the best start with readily available nutrients. In addition, the paddock got 2.5

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tonnes/ha of lime and 700kg super 10/ ha prior to sowing and 100kg urea/ha in January.”

Sowden adds that the Ironwood property is prone to weeds such as shepherd’s purse, chickweed, spurrey (yarr), fathen and wild turnip.

The Perkins sowed 35ha of HT swede in 2012 and “are planning on increasing the area sown this spring as it’s such an easy system to use and the results speak for themselves,” Sowden said.

Sue Wylie checking the BMR Rocket crop on her Central Hawkes Bay property.

Plan now for feed

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WITH A long hot summer looming, now is the time to start making important decisions on feed supplements for early next year, says Pacific Seeds.

The company reports that last year Central Hawkes Bay farmer Sue Wylie planted Pacific Seeds BMR Rocket with “really impressive results”.

“We planted BMR Rocket in mid-November and were able to put our bulls on it 56 days later,” Wylie says.

“Despite the really bad drought they averaged weight gains of 2kg per day while they were on it and we were able to get them off to the works one month earlier than the previous year. On average they were also 20kg heavier than the previous year.”

Pacific Seeds says its summer forages provide growers with diverse and high yielding quality feed options developed especially for environments prone to extreme summer conditions.

“With our range of maturities, plant types and agronomic traits, we have a summer forage solution to suit growers specific needs”, says Pacific Seeds territory manager Barry Smallridge.

Pacific Seeds forage options include BMR Rocket, BMR Octane and Sprint.

Rocket, which flowers earlier than Octane, is better suited to intensive management, whilst Octane’s longer growing season provides for greater flexibility. Both these Sorghum x Sudan hybrids have excellent vigor and regrowth rates, with well-balanced energy and protein levels. Each of these hybrids has the BMR-6 gene which provides for enhanced digestibility, palatability and increased ME levels. Both forages suit dairy and cattle.

Sprint – which is a Sudan x Sudan hybrid – is ready for grazing or cutting in 50 days, with rapid regrowth allowing for some farmers to get five grazings from it. It is extremely palatable with fine stems and is ideally suited to shorter seasons, or where it can be well managed. Sprint is suitable for sheep, cattle and dairy stocks.

“Because Rocket and Sprint are so fast growing they provide farmers with a number of management options,” says Smallridge.

“Firstly, they let growers get an extra rotation out of their grass pasture. On top of that there is also the option of grazing or cutting for hay, baylage or silage.

“They also provide our growers with greater flexibility than they would have with summer brassica,” he adds.

Tel. 027 494 7706 www.pacificseeds.co.nz

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TFM TRACTORS HASTINGS

TFM Tractors is now the dedicated AGCO dealer for Massey Ferguson, Fendt and Iseki in Hastings and the surrounding districts. TFM Tractors invites you to visit their new Hastings premises and experienced team of staff to explore the range of professional mowing equipment, compact and mid- to high-horsepower tractors, and hay tools. Please contact us for all your Massey Ferguson, Fendt and Iseki sales, parts and service needs.

TFM TRACTORS – “EXPANDING INTO HAWKES BAY” AGCO Australia are pleased to announce the appointment of TFM Tractors as our new Massey Ferguson, Fendt and Iseki farm machinery dealer for the Hawkes Bay region, effective 1st December 2013.

TFM Tractors is owned and operated by the Tulloch family, led by dealer principal John Tulloch.

John has a proud history of supplying quality farm machinery and after sales support to customers in the Wairarapa district.

Announcing the appointment is AGCO Australia’s Managing Director, Warwick McCormick: “AGCO’s plan to increase their representation and support for new and existing customers throughout the Hawkes Bay weighed heavily on the company’s decision

to appoint and support TFM Tractors in their new venture.”

TFM Tractor’s experience, focus on AGCO brands and long term plans to grow their business appealed to AGCO and contributed to the decision to appoint them as the new dealer responsible for the Massey Ferguson, Fendt, and Iseki brands.

Mr. McCormick, along with AGCO ANZ staff, thanked the Deartech company and family, for their involvement in supporting the Massey Ferguson and Fendt brands in the Hawkes Bay over the last 12 years.

John Tulloch thanked AGCO for the confidence shown in their plans to develop a local business,

and for the opportunity to be part of the ever-increasing growth and diversity in products required for modern day farming practices.

“The brands that AGCO offer are all of premium quality and offer one of the most extensive product lines available to professional farmers, large and small alike, and contractors in the region. We have confidence in the agricultural industry and look forward to offering these quality brands to existing and new TFM Tractors customers,” John said.

TFM Tractors will be operating from their new premises at 1217 Omahu Road, Hastings.

Their phone number is 06 879 7536.

TFM Tractors 1217 Omahu Road, Hastings | Phone: 06 879 7536

RURAL NEWS // DECEMBER 3, 2013

48 MACHINERY & PRODUCTS

Little maintenance needed Hay bales handled easier

Pluck’s latest offering – a new pond stirrer.

Transports and stands wrapped round bales on end for storage

IT’S QUICK, IT’S CONVENIENT, IT’S EFFICIENT H NOW AVAILABLE AS A SINGLE OR DUAL UNIT H • Thick layers of plastic on bale ends provide superior protection against ground moisture and weather while stored.

• No flat sided bales (simplifies feeding out).

• Less storage area required.

• Suitable for medium HP tractors.

• 3PL mounted (no front axle stress).

• Bale tipped in one easy movement.

• No need to reposition bale before tipping.

• Simply trip and flip.

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ponds biologically active by supporting oxygen and day light input. By keeping most of the solids in suspension all the time, such a pond can be pumped out any time.

The new stirrers retain the low-powered motors and large blade under the surface, as well as the drive system and steady bearings above the water line, But the new models are now powered through an in-line planetary gearbox/ motor combo, supported by two 40mm steady bear-

Tel. 0800 487 853 www.hustlerequipment.co.nz

Tel. 0800 PLUCKS

NOT ALL DIRECT DRILLS THE SAME! THE ARTICLE in Rural News (Nov 19) about strip tillage was excellent except for one mistake that detracted from its otherwise positive impact.

“The advantage over direct drilling is that you get better establishment because you are getting worked soil around a seed, versus dropping a seed into

a hard slot which is hit-and-miss,”… would be factual if it was referring to certain classes of direct drilling machines and their openers, but definitely not all.

It is grossly inaccurate when applied to other direct drilling machines.

There is strong published science and equally strong

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The machines arrive onfarm ready to be assembled and afloat “in just a few minutes”, complete with under frame blade protection to prevent damage to the pond liner.

The new range will be offered in a motor range from 0.75kW for small sumps and tanks to 5.5kW for ponds typically 2 million litres and bigger.

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field confirmation that when an inverted-T-shaped seed slot is created and covered properly during direct drilling.

The seed and seedling soil environment will almost invariably be superior to that created in tilled soil and strip-tilled soil, and certainly in poorly made, non-inverted-T shapes of direct

drilled slots.

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The addition of the word “some” before “direct drilling” near the beginning of the statement would have rescued the article.

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A NEW effluent pond stirrer to be released soon will require limited maintenance and carry a two-year warranty – almost unheard of in the dairy industry, says manufacturer Plucks Engineering.

The company, which invented and developed the cone-shaped ‘enviro saucer’ pond, expects its new offering to impress farmers.

Plucks first introduced its range of effluent pond stirrers four years ago, using only 1.1kW of power for 24/7 stirring to keep

ROUND BALES and four-foot squares are said to be handled with equal ease by Hustler Equipment’s new “low cost” bale grab, the CXR Softhands.

“The CXR has a fixed hand, designed specifically for handling round bales, although the shape also allows four-foot squares to be handled with ease,” the company says.

Going for a cheaper fixed-hand unit pointed to limitations so the company consulted operators during its search for the “ultimate shape”.

Four key aspects of traditional fixed-hand design stood out as needing change: less bale damage to bale shape, wrap and adjacent bales; ease of use when loading and stacking; more versatility to handle bales in any position; and tough enough to withstand New Zealand conditions.

“The slim hands make stacking easier, the compact design offers unbeatable visibility, and the new patented technology, with details to be released in December, is a major leap in bale handling equipment,” Hustler says.

An optional equaliser bar will keep the hands moving simultaneously for extra safety and precise bale control.

The machine carries a two-year warranty.

Price $3100+GST including Euro hitch brackets and free freight nationwide.

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RURAL NEWS // DECEMBER 3, 2013

MACHINERY & PRODUCTS 49

Feeding out made easier WAIKATO FARMERS Rebecca and Len Walling are dishing out 10 tonnes of feed daily using an Irishmade Abbey VF (vertical feeder) 2850 mixer wagon, reports the supplier, Farmgard.

“We feed out 10 tonnes a day, twice a day, so we need a good, reliable machine that is going to last,” Rebecca says. “Our

old mixer wagon wasn’t able to handle a 10 tonne payload when we added molasses so we started looking at new machines.”

The VF2850 is the largest in the Abbey range – 28m3. It consistently delivers 10 t on the Wallings’ 900-cow farm at Wharepuhunga south of Te Awamutu. They milk twice daily, every day of

the year.

“Our old machine was supposed to produce a 10 tonne payload but this was totally dependent on the sort of product you put in.

The Abbey can reach the 10 tonne payload with any feed combination.”

Abbey’s twin vertical feeder range is designed to handle tough conditions, and is constructed using

Abbey’s twin vertical feeder range is designed to handle tough conditions.

the highest grades of materials, Farmgard says.

The machines can handle precision-chop silage, large round or square bales of silage, hay, straw and roots. Additional feed products such as maize and meal can be added at any stage of the mixing process.

Wallings mix mainly maize silage, grass silage, palm kernel and molasses; sometimes straw, minerals, and kiwifruit, apples and bread when available.

“We mix this up twice a day and feed on the feed pad and into feed troughs all year round. It’s a fairly basic diet but it works for our system and is cost effective,” says Rebecca.

The shape of the mixing auger and tub is said to ensure a “perfect” blend of ingredients.

The machine’s Digi-

The Wallings feed out 10 tonnes a day.

Star weighing system allows consistency of the feed ration and lets the operator know “exactly what’s going on”. The mixed feed is then evenly discharged, with the feed flow rate controlled by a hydraulically operated discharge door.

The VF2850 has a rear

self-steering axle allowing it to turn it in a tight circle without having to manoeuvre and back around.

Rebecca and Len Walling are principals of Walling Contractors, servicing the Waikato district. “We know machinery pretty well and the importance of

it doing the job efficiently and reliably.”

Abbey also makes slurry tankers and muck spreaders.

Wallings bought the Abbey machine from Waikato Tractors.

Tel. 09 275 5555 or 03 437 9000 sales@farmgard.co.nz

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RURAL NEWS // DECEMBER 3, 2013

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• Are you having trouble with rubbish getting into your farm pump?

• Weeds building up on your water filter? • Algae blocking your water lines?

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Keep up with the latest stories from by following us at facebook.com/ruralnews BREAKING NEWS

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MACHINERY REVIEWS

Happy Birthday To mark a birthday, retirement or any milestone, give that special someone, something special - a personal cartoon portrait by Edna cartoonist Malcolm Evans - $200 plus GST Send no money - just email a few up-to-date photos of subject, with a note of details you’d like included, to; malcolm@evanscartoons.com

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Or post your inquiries to; M. Evans, 39J Cape Horn Road, Hillsborough, Auckland 1041 . and don’t forget to include your return address.

Buffalo Boot Sale $80!

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Sale Ends 15 December 2013 (while stocks last)

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RURAL NEWS // DECEMBER 3, 2013

RURAL TRADER 51 FLY OR LICE PROBLEM?

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New Zealand’s CHEAPEST Culvert Pipes!

FREE joiners supplied on request.

300mm x 6 metre ................................ $410 400mm x 6 metre ................................ $515 500mm x 6 metre ................................ $690 600mm x 6 metre ................................ $925 800mm x 6 metre .............................. $1399 1000mm x 6 metre ............................ $2175 1200mm x 6 metre ............................ $3475 ALL PRICES INCLUDE G.S.T.

99.00 per night

OFFER IS FOR FRIDAY & SATURDAY NIGHTS ONLY

Culvert Pipes ONE STOP WATER SHOP

$

• Lightweight, easy to install • Made from polyethylene

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

Your perfect travel companion.

Phone

0800 625 826

for your nearest stockist

Joiners supplied FREE with culvert pipes

ELE-00939A-RN

THERE’S NO BETTER WAY TO SECURE YOUR RETURNS High demand for lambs is expected to continue – and when it comes to improving lamb numbers, one of the best ways is through vaccination. Diseases like Toxoplasma, Campylobacter and Salmonella can cause major losses.

Vaccination helps you protect your ewes and increase the number of lambs born, but you’ll need to plan ahead.

With our range of sheep performance vaccines it’s easy to get the level of performance you want from your flock and secure your returns for next season.

Visit www.sheepvax.co.nz and talk to your vet about a vaccination plan today.

AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ®Registered trademark. MSD Animal Health. Phone 0800 800 543. SPV-343-2013