Rural News 16 December 2014

MANAGEMENT

MACHINERY

No excuses for spray drift.

PAGE 24

A familiar name makes a comeback. PAGE 34

RURALNEWS

NEWS 2014 review – the good, the bad and the downright ugly.

PAGE 6-7

TO ALL FARMERS, FOR ALL FARMERS

DECEMBER 16, 2014: ISSUE 575

www.ruralnews.co.nz

Payout ‘adjustment’ needed SU D ES H K I SSU N sudeshk@ruralnews.co.nz

FONTERRA IS ruling out clawing back money from its farmer suppliers despite some being paid more than the latest revised forecast payout.

Co-op chairman John Wilson says “adjustments” will be made to balance out the advance rate over the coming months and there is no need to claw back extra money already paid.

The co-op is slashing advance rate and capacity adjustment payments to suppliers from February to match its $4.70/kgMS revised forecast payout; from February farmers will get $4.37/ kgMS – made up of $3.85 in advance plus a capacity adjustment payment of 25c.

Between July and August this year farmers received $5/kgMS for milk supplied the previous month to Fonterra; this included $4.48 advance rate and a 52c capacity adjustment payment and was based on the previous $5.30 fore-

cast payout.

Capacity adjustments reflect the extra demand placed on processing capacity by farms that produce more than the company-wide average milk volumes during the peak months September to January.

Last week the co-op was forced to slash the forecast payout by 60c due to volatility in the global markets.

Wilson says the advance payment is fixed at about 90% of the forecast payout, to protect the co-op’s balance

sheet and provide strong cashflow onfarm.

“From the co-op’s perspective we are doing everything to return cash to farmers while ensuring the co-op has a strong balance sheet and cash growth,” he told Rural News. “Like any business there are ups and downs and adjustments are made along the way.”

Federated Farmers dairy chairman Andrew Hoggard notes that farmers were paid above the forecast payout for milk during months when little milk is

produced. “This should make adjusting payments easy.”

Hoggard says a lower advance rate will make life harder for farmers. “The drop in payout was expected and many farmers have already tightened their belts to ensure their cost of production falls below the revised forecast payout.”

Farmers are taking the reduced payout on the chin and moving on, he says. After the latest payout dip, farmers are saying “pretty much – ‘bugger’!”

FRESH START Fraser Taylor and Kendra Pye were recently selected – from a strong pool of candidates – to manage the McRae Trust Farm, 8km from Wairoa, near Frasertown in the Hawke’s Bay. The 622ha property was bequeathed to the nation in 1975 and is a working sheep and beef farm committed to the improvement of farming lands and sustainable methods. See full story page 19

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Beef buffers dairy doom P ET ER BUR K E peterb@ruralnews.co.nz

HIGHER SHEEP and beef prices seem set to buffer the drop in export earnings from dairying, according to the latest economic update from the Ministry for Primary Industries (MPI).

Not surprisingly MPI is forecasting a 9.5% drop in total export earnings to $34.6 billion for the 2014-15 season, caused by a 23.5% drop in dairy exports.

The report says meat and wool exports this season will rise by 6.4% to $8.611 billion and horticulture and seafood exports will rise, but forestry will drop.

Global beef prices are expected to stay high for the next two years, offering an opportunity for farmers.

Current high prices will enable farmers to invest in the quality of their herds to target higher value from each animal, says MPI. The retention of dairy calves offers another opportunity.

On the dairy side, MPI is forecasting a $4.82/kgMS farmgate payout – higher than Fonterra’s latest forecast and much higher than predicted by many analysts. There is talk of a payout about $4.40kgMS. Looking a year ahead, MPI forecasts that primary exports in 2015-16 will be $36.1 billion – up 4.3% on this season. This is based on an improved performance in all sectors including dairying.

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NEWS 3 ISSUE 575 Last chance for NZ ownership

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claims wannabe meat director A N DREW SWAL LOW andrews@ruralnews.co.nz

NEWS ������������������������������ 1-14 WORLD ������������������������������ 15 AGRIBUSINESS ������������ 18-19 MARKETS ��������������������� 16-17 HOUND, EDNA ������������������� 20 CONTACTS ������������������������� 20 OPINION ����������������������� 20-23 MANAGEMENT ����������� 24-25 ANIMAL HEALTH �������� 26-29 MACHINERY AND PRODUCTS ������������������ 30-34 RURAL TRADER ���������� 34-35

SILVER FERN Farms’ board candidate Fiona Hancox says if farmers can’t fund the cooperative’s call for capital, then it at least needs to ensure a “New Zealand Inc approach rather than foreign ownership”.

Working with Alliance, which was due to announce results of its director elections as Rural News went to press, would be one way to achieve that, especially if Alliance’s shareholders “vote for change” by electing MIE-backed candidates Mandy Bell and Russell Drummond, says Hancox.

“It would certainly be easier if we do get a change of directors there,” she told Rural News.

“More of the same is not going to work but if there was a slightly different focus, a consolidated cooperative

going forward, then farmers would be more motivated to put in more capital,” she added, when asked if sheep and beef shareholders had enough money to fund Silver Fern Farms’ quest for $100m.

To persuade farmers to invest, Silver Fern Farms needs “a really good strategy” and to show where the return on the further investment would be, as “in the past they’ve felt they’ve got their fingers burnt,” says Hancox.

Ensuring shareholders get the best prices from their cooperatives, rather than third party traders, is essential, but premiums for third party supply is “absolutely” still happening, she maintains.

“I would be very surprised if it’s not throughout the industry [ie not just SFF] with the falling stock numbers and overcapacity among the four main processors. It’s that overcapacity that drives the bad behaviour. They need

those lambs on hooks and they have to source that extra 20-30% through third party traders.

It’s the only way they can survive at the moment.”

Lack of cooperative principles and transparency is what’s driven many suppliers away from the two cooperatives, she believes.

“A lot say they will return [to supply a cooperative] if that transparency returns. The companies need to behave as a farmer cooperative and not as a corporate.”

Hancox is a former MIE executive member whose candidacy for SFF’s board has the ginger-group’s backing.

Farmers accept change is needed HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 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 81,188 as at 30.06.2014

PETER BU RKE peterb@ruralnews.co.nz

A LARGE and effective network involving farmers is the only way of effecting change in the dairy industry, according to Dr Rick Pridmore, DairyNZ’s strategy and investment leader for sustainability.

He spent much of last week facilitating a dairy leaders forum in Wellington, at which about 60 dairy farmers from throughout the country heard from a wide range of speakers on ‘sustainability’.

The three-day forum culminated in a dinner at Parliament attended by politicians and other industry leaders.

Pridmore says its accepted that sustainability is an issue that needs

to be addressed. But he says to give effect to that is not just about the dairy companies telling the farmers what to do. By developing a large network of informed farmers, it is hoped they can spread the key messages effectively, he says.

“It’s about farmers understanding what to do. This forum is about taking the cream of the crop of farmers whom we know are out there who are involved in helping to make decisions about sustainability. This could range from catchment engagement leadership groups or zonal committees in case of Canterbury. This forum is about educating them better so they can do their job better and participate in community processes.”

Pridmore says dairy farmers

must learn to work with a huge range of different people and groups such as members of Parliament, regional councils and Fish and Game. He says representatives of all these organisations spoke to the group and there were good healthy debates. Lawyer Mai Chen was among the speakers.

Over the years, about 300 people have gone through this leadership programme and Pridmore says it was so popular this year they had to turn away about 25 people who wanted to attend.

He says there was a real ‘buzz’ at this year’s event with participants wanting to talk to each other because every part of the country is different and people want to learn from each other.

Meat Industry Excellence (MIE) chairman John McCarthy says it is vital shareholders engage with SFF’s election process despite it running during a busy time on and off farm.

“Having completed two weeks of farmer meetings throughout the country, it’s clear that sheep and beef farmers want change. Ensuring they have directors on their co-op boards who understand the vision is crucial.”

Fiona Hancox Hancox said there was a strong consensus at the meetings that the red meat industry must provide profits, grow and capture returns for farmers. It also needs to work together, with Alliance at the table. @rural_news facebook.com/ruralnews

Dumb!

ONE COMMENT dominated conversation after Beef + Lamb New Zealand’s recent Central South Island ‘Big Day Out’ field day at The Grampians Station: that sheep and beef farmers “don’t have a lot of engagement with good management practice.”

It came from the chair of Environment Canterbury’s commissioners, Dame Margaret Bazley, and was taken by many as a slight on the sector’s practices.

“You just can’t argue with stupid,” commented one gob-smacked farmer on returning to his ute after hearing Bazley speak.

BLNZ chairman James Parsons came to her defence when closing the day’s formal proceedings. “I’m sure that came out the wrong way,” he said, having been talking to Bazley earlier in the day.

Bazley and fellow commissioner Tom Lambie last week clarified to Rural News that the comment was a reference to the Matrix of Good Management model which ECan is developing with the support of eight other regional councils.

RURAL NEWS // DECEMBER 16, 2014

4 NEWS

Fonterra chair admits bungle over false botulism scare SU DES H K I SSU N sudeshk@ruralnews.co.nz

FONTERRA CHAIRMAN John Wilson admits the co-op should have handled some aspects of last year’s false botulism scare differently, but he says the coop’s food safety has been proven world-class.

Wilson was commenting on the final report from the independent inquiry into last year’s false WPC80 botulism scare. The report found shortcomings in the co-

op’s traceability system and crisis management.

Wilson told Rural News the findings were “similar” to Fonterra’s own investigation report. “What is pleasing is that the recall had no food safety issues; it was a false alarm. “We should have handled some things differently… but overall our food safety is world-leading.”

The inquiry team was headed by Miriam Dean QC and assisted by Tony Nowell and Dr Anne Astin; Professor Alan Reilly

was an independent peer reviewer.

It notes that having notified MPI, Fonterra had “no well-prepared (or reviewed or rehearsed) group crisis plan to implement, including crisis communications (particularly in social media)”.

Fonterra took until 18 August to trace all the affected products, “a seriously deficient effort,” it says.

“Fonterra did not effectively co-ordinate its actions with those of the

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The report also finds that the Ministry of Primary Industries did not have a coherent crisis plan for a food incident that it could implement straight away after receiving notification of C. botulinum.

It notes that the ministry’s response was hampered by Fonterra’s late notification overstating the certainty of C. botulinum and by Fonterra’s drawnout and defiJohn Wilson: “We should have cient handled some things differently.” tracing.

ministry, Danone and the Government during the crisis. Fonterra’s communications were neither well conceived nor co-ordinated and lacked a tone that

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incident, should further strengthen confidence in New Zealand’s world class food safety system.”

Fonterra chief executive Theo Spierings says food safety and quality are its number one priority.

“At the time of the recall, we did what was right based on the evidence we had. It was subsequently confirmed that the recalled WPC80 did not present a health risk,” says Spierings. @rural_news facebook.com/ruralnews

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The report gives MPI credit for many aspects of its response, “but it should have had betterdocumented decisionmaking processes, used more rigorous science-based risk assessment and coordinated better with the industry to avoid unnecessary confusion among consumers and others”.

Primary Industries Minister Nathan Guy says the report is a “very robust piece of analysis.” “The rigour and conclusions of the report, and the actions of key players since the

“We see overseas farmers taking to the streets and throwing shit at Parliament; in New Zealand we know the Government is not responsible for this, it’s all about demand and supply in the global markets,” says Hoggard. “We get good times, we get bad times; we just have to roll with the punches.”

Hoggard says farmers are aware the payout could dip further if global dairy markets don’t improve.

Agribusiness expert,

Keith Woodford, Lincoln University agrees farmers are not surprised by the $4.70 milk payout.

He raises the idea of using the dividend payout to unit holders to subsidise the milk payout.

“There’s an argument that given that last year Fonterra took money from the milk payment to pay the dividend, that this year the dividend should subsidise the milk payment.

“This is an impor-

Rebound mid 2015?

FONTERRA CHAIRMAN John Wilson expects dairy prices to rebound towards the middle of next year.

The co-op had earlier talked about whole milk powder prices rebounding to US$3500 by March to sustain a $5.30/kgMS milk payout.

However Wilson says the fall in global milk has been slower than expected. “The drop in global supply in the US and the EU is starting to happen but there will be a six-month lag before prices start coming up,” he told Rural News.

tant issue for sharemilkers who do not get a dividend; sharemilkers, particularly those in their first season, are the

ones who will be doing it tough. Also, some contractors who rely on farmers will also be doing it tough.”

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NEWS 5

Drought still influences lamb production P E T E R BU R K E peterb@ruralnews.co.nz

THE IMPACT of the massive drought two years ago is still affecting sheep numbers, with only a modest increase this season.

In its latest report Beef + Lamb NZ’s economic service says 25.8 million lambs were tailed this season – a mere 1.2% up on last year, making it the worst lambing in 60 years.

Chief economist Andrew Burtt says the drought meant there was less feed available to ewes and their mating weights were down. However, lamb survival rates this spring were higher due to the mild weather and the overall average lambing percentage was 124%.

“The residual impact of the drought is even more pronounced when the lamb numbers are split by island,” Burtt adds.

“Numbers were up 5.5% in the North Island, when compared to the droughtaffected lamb crop of 2013, which was the smallest increase for the region since records began.

“Ewe lambing

“The smart guys are out there looking at what it’s going to cost them to feed their animals overall and looking at sheep relative to cattle and making calls early, rather than hanging on and hoping.” percentages were up across all regions, with a 7.1% lift on the East Coast, to 123.7%, which is noteworthy because the East Coast represents about 25% of New Zealand’s sheep flock.”

According to Burtt, this year’s export lamb kill will be 19.95 million – a drop of 1.9% on last season. The average carcase weight is expected to increase slightly to 18.4kg, mainly as a result of lower stocking rates and an expected ‘normal’ season.

Burtt says sheep farmers are now facing the dilemma of selling lambs or building up their flocks.

It is difficult to generalise because every farm is different and every farmer looks at things in his own way. Burtt believes the early dry weather on parts

of the North Island east coast may also have an influence on what farmers in that region do.

“Generally the guys there will be looking critically at their budgets – particularly financials and feed.

Over many years, farmers have become better at making decisions.

“The smart guys are out there looking at what it’s going to cost them to feed their animals overall and looking at sheep relative to

cattle and making calls early, rather than hanging on and hoping.”

Burtt says wool is still very much a part of the equation for sheep farmers. The farmers who perform well – especially financially – do a whole lot of things well.

“They don’t necessarily have the highest lambing percentage, or the highest calving percentage, or the best wool weights, but they haven’t neglected

wool. They see it as an important co-product and there is still attention paid to it because you have to get a whole lot of things right to do well overall.”

Burtt says the outlook for sheep and beef is positive with the rising demand for red meat. He believes this gives farmers “underlying fundamental confidence,” which is positive for the red meat sector.

While China offers new opportunities for the red meat sector, the word is that most people are well aware of the risks of investing too much in one market and ignoring others in Europe and North America, he says.

And, anecdotally it seems more farmers are aware of consumer needs and the ‘paddock to plate’ concept is catching on.

But farmers must focus on their customer – the processor and exporter.

Andrew Burtt says the drought is still impacting on the national sheep flock.

NEW PLYMOUTH DISTRICT PLAN Royal Forest & Bird Protection Society of NZ Inc hereby gives notice that it has applied to the Environment Court for the following enforcement orders on 21 October 2014: (a) An order that the New Plymouth District Council notify a change to the New Plymouth District Plan and in due course notify its review of the District Plan so as to identify as significant natural areas for the purposes of section 6(c) of the Act all the 363 sites that are likely to meet the New Plymouth District Plan significance criteria based on the desktop assessments described in Wildland Consultants Limited Reports 1623 (March 2007), 2407 (October 2009), 2611 (March 2011) and 2611a (March 2012), in addition to the significant natural areas contained in Appendix 21 of the District Plan; (b) An order that the review of the New Plymouth District Plan include rules that regulate clearance and disturbance activities in significant natural areas on a non-complying activity basis; (c) An order that the review of the New Plymouth District Plan discontinue the permissive status currently granted for indigenous vegetation disturbance under a conservation covenant, contained in rule OL 60 in the New Plymouth District Plan; and

(d) An order that for all natural areas of the District that have been excluded from the section 6(c) identification work undertaken by or on behalf of the New Plymouth District Council because: i. they are habitats that are difficult to adequately identify through desk-top analysis; or

ii. they are considered to be protected through other means such as through legal covenant or under the Taranaki Regional Council’s Key Native Ecosystems Programme; the New Plymouth District Council undertake further work to identify these areas and to include them as significant natural areas if they are likely to meet the criteria for significance as set out in the New Plymouth District Plan; and (e) Such further orders as the Court considers necessary in order to ensure compliance with the Act. The location in which this order is sought is within the New Plymouth District.

This order is sought against the New Plymouth District Council.

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Persons directly affected by these applications, such as owners or occupiers of land containing a potential Significant Natural Area, and wishing to be heard at the hearing to determine this matter, must notify the Environment Court Registrar, Wellington by 5pm on 29 January 2015 (citing the Court Reference No ENV-2014-WLG-000056).

If you do not notify the Registrar of your wish to be heard, the case, will proceed without further notice to you.

The following documents are also available to be downloaded from the above websites, or hard copies can be obtained from the Royal Forest & Bird Protection Society of NZ on telephone 027 772 7822: (a) a copy of the application:

(b) a copy of the affidavits in support of the application.

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If you want a lawyer but think that you cannot afford one and wish to apply for legal aid, contact the Environment Court, the District Court, a Citizen’s Advice Bureau, a community law centre, or a lawyer for assistance.

If you have any questions about this notice, contact the Environment Court in Auckland, Wellington, or Christchurch.

RURAL NEWS // DECEMBER 16, 2014

6 NEWS: 2014 REVIEW

2014 – the rural ratings game: G It’s been a big year for agriculture with the rise and fall – and still falling – of dairying prices. And for the first time in many years, sheep and beef farmers are feeling good – or is it that they know dairy aren’t in such a happy frame of mind? We take a look back on the year to see what was good, what was bad and what was downright ugly…

LEADERS OF THE PACK TATUA AND Miraka showed that small is good with both paying above Fonterra’s payout in 2013-14.

Whether Miraka will wish to continue to pay more than Fonterra this season remains to be seen. Worth noting is that both Miraka and Tatua are producing more and more high-value products.

Lain Jager, Zespri’s chief executive, for his inspirational and future-focused speech at this year’s annual conference. Jager showed all who were there that his organisation is determined to make good after Lain Jager, Zespri NZ. the problems

Psa has caused the industry.

KPMG’s Ian Proudfoot also scored highly with his various Agribusiness Agenda publications.

It is encouraging for the wider agribusiness sector that someone is thinking long-term and floating new ideas and concepts. It would seem the agri bootcamp is also doing likewise. Keep up the good work Ian.

Federated Farmers under new president William Rolleston are set to continue the good work done by Bruce Wills, raising the profile and credibility of the organisation. Add some new board members and a new chief executive – Graham Smith – and one can see Feds having as much influence as in the past. Wills did a great job and the new leaders are poised to fly even higher.

Traci Houpapa, chair of the Federation of Maori Authorities, is another influential leader Best call to action in agribusiness. She is also for the year on the boards of Landcorp goes to Massey Farming and Te Uranga B2 University’s Incorporation in the central Traci Houpapa - on the rise.

Prof Peter Kemp North Island. Houpapa is one for posing the question, “Are you of a number of highly successful bright enough to work in agriculture?”

Maori women playing a major Kemp’s team at Massey is one of the role in the growth of the ag few in New Zealand with a positive sector.

or two on speech-making from the Prime Minister. Guy needs to loosen up a bit; his speeches are becoming terribly predictable – cracked-record messages about doubling exports by 2025 and the potential of Maori.

A hard worker, but sometimes hamstrung by his department.

WANTED AgResearch may or may not A political home for Labour be right in creating its Lincoln agriculture spokesman hub, but the perception is Damien O’Connor. they are doing this poorly, A solid, talented and losing good people in the knowledgeable performer, process and don’t seem to he has been hung out to care. A lot of the old guard dry by his own party which of scientists have left and seems to have no interest institutional knowledge in agriculture apart from is disappearing out imposing a capital gains tax the door in waves. and cuddling with the Damien O’Connor; treated Farmers are right to be Greens who essentially badly by his party. concerned. want a return to peasant farming.

BAD Also wanted, a new speechwriter Ospri / NAIT / TBfree: for a for Nathan Guy and perhaps a lesson dogs-dinner of brands, numbers and and constructive interface with farmers and media. Also, credit to Lincoln’s University gurus Gibbs and Moot for transferring technology (fodder beet and lucerne respectively) at every opportunity.

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RURAL NEWS // DECEMBER 16, 2014

NEWS: 2014 REVIEW 7

: Good, bad and just plain ugly the report then went on to say how ACTION NEEDED they have improved things since.

God preserve us Sorry, Theo, is spelt S-O-R-R-Y! A from any more clear case of arrogance by the dairy boring papers giant which can’t seem to get the and speeches Equally bad, the thousands of hours nature of the angst and scope of the by boring policy farmers and their representatives wonks, politicians, damage it caused to the country and are having to donate to thrash out the need to say “we cocked up real business people, environmental policy for regional badly”. sundry academics councils. The so-called consultative and others about Goodbye to the two longmodel sounds good, but only the And another related PR disaster the need to attract serving chief executives of lawyers and bureaucrats get to end the year: MPI did little better; young people into the meat co-operatives – paid. Farmers who do the agribusiness. Just Grant Cuff at Alliance hard yards collecting again no apology for its incompetence Grant Cuff; finished as put your hands Group and Keith Cooper evidence do this for in this saga. PR rating for both Alliance Group CE. in your collective at Silver Fern Farms. Both nothing and at the organisations – 2 out of 10. pockets and dish out some oldachieved great things GOOD expense of their own fashioned dosh to lay on fleets of for their individual A solid businesses. buses and take students and businesses. Let’s hope performance by teachers to good farms to meet the new faces continue the industry-good Fish and Game still the talented, motivated young the good work and can organisations remains a pain in people who work in the sector. break the stalemate which did their the proverbial of the Actions speak louder than that is the meat industry best to interface primary sector. The words guys and gals. structure. with their farmer lobby’s constant Fish&Game NZ’s Bryce Beef prices. After decades constituents ‘carping’ and antiJohnson in danger of INCREDULOUS stuck at $4/kg, this spring’s and farmer sentiment has making his lobby a militant A lack of contrition from $6/kg was an overdue levypayers. it in serious danger wing of the Green Party. step change – despite a Fonterra on the damning report Field days, of becoming a badly on how they (mis)handled the strong NZ dollar. Let’s media releases and dressed wing of the Green Party and/ Keith Cooper; leaves Silver Fonterra’s Theo Spierings; botulism scandal. In its PR hope it’s sustained. conferences were well or Greenpeace. Franticly protecting Fern Farms.

“Sorry, the hardest word.” spin the co-op “welcomed” done, but one wonders if exotic pests so they can catch and kill databases. They’ve made what should be a simple job a nightmare for most farmers.

them at their leisure at the expense of everything else in NZ makes the group look more like a bunch of fanatics than environmentalists!

Ongoing overcapacity in the meat industry: When will the red meat sector bite the bullet and shut down under-used processing plants?

Farmers will have to pay the cost of any restructure – both financially and in the inability to get stocked killed during peak season or during droughts – but it will pay off in the long term.

the people they most need to educate are never there. However, to do nothing would be worse and clearly positive changes in farming are taking place and some of the credit should go to DairyNZ, Beef + Lamb and HortNZ.

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RURAL NEWS // DECEMBER 16, 2014

8 NEWS

ANZ reaches $19 million settlement on swaps THE COMMERCE Commission is negotiating with Westpac and ASB after having reached a $19 million settlement with ANZ over the marketing of interest rate swaps.

The deal has been welcomed by Federated

Farmers, but slammed by Labour Primary Industries spokesman Damien O’Connor.

The settlement will see ANZ establish a fund of $18.5 million, to be used to make payments to eligible customers, i.e. those who

registered complaints with the commission.

The commission will also get $500,000 towards its investigation costs, and some money from the payment fund may be given to rural charities.

ANZ has also agreed to

admit in High Court proceedings that it engaged in certain conduct that was misleading to some eligible customers over the marketing of interest rate swaps from 2005-2009.

The commission will be seeking High Court dec-

William Rolleston

larations that the bank’s conduct breached the Fair Trading Act 1986. A hearing of that application is likely to take place early next year.

ANZ says it does not accept all the Commerce Commission findings but accepted some of the conduct was misleading and says settlement avoids lengthy delays of payments to customers.

The bank is contacting the 178 customers who may be eligible for a payment.

Federated Farmers has described the settlement as “a fair and equitable outcome” for rural customers. President William Rolleston says the agreement that the ANZ will pay compensatory payments to customers who believe they were misled by their interest rate swap contracts is the best outcome which could be expected.

“While some farmers found interest rate swaps a useful instrument, others felt they were not adequately informed of the risks should the market run against them. The global financial crisis created those unexpected and unfavourable conditions. Federated Farmers wrote to the Commerce Commission asking it to investigate and the outcome today vindicates our stance.”

Rolleston says the saga is a reminder to all farmers that they must be sure they understand contracts

and they get independent advice.

Meanwhile, Labour’s Damien O’Connor says the commission found failings by the bank but then lets them off the hook with a paltry $18.5 million payment for total absolution.

“Even Mother Teresa would struggle with this level of forgiveness for a bank that between 2005 and 2009 pocketed $6 billion in pre-tax profits.

“They have eliminated any possibility of a further investigation into the selling of millions of swap loans by the ANZ to New Zealand farmers between 2005 and 2009.”

He says farmers were prevented from coming forward by confidentiality clauses in bailout packages when banks realised they were going to have to explain their swaps selling practices.

“In the UK and Australia, banks have been held to account for practices that were deemed misleading and unethical for lenders and investors who were ill equipped to understand these complex financial products. New Zealand has failed to do the same,” says O’Connor.

Elders rebrands THE CARR Elders Group will rebrand to Carrfields Limited (Carrfields) early next year.

The name change follows the Carr Group’s acquisition of the Elders’ New Zealand business in August this year.

The company says an official launch of the new brand name will take place in February 2015.

Check out our websites www.ruralnews.co.nz www.dairynews.co.nz

RURAL NEWS // DECEMBER 16, 2014

NEWS 9 China, Russia biggest wildcards in dairy prices GA R E T H G I L LAT T

CHINA and Russia are the biggest factors in the global dairy price crash of the last four months, says Rabobank New Zealand and Asia director of dairy research, Hayley Moynihan.

Addressing 200 farmers and rural professionals at Whangarei on November 26, Moynihan told the audience the soft landing predicted by the bank last year had turned into a quick price slide – largely due to events in the two economic powerhouses.

Late November 2013, Moynihan predicted a fall in global dairy prices, pointing to bumper grain harvests after significant droughts in the US and Europe and scrapped production caps in the EU. Farmers in the ‘bigseven’ dairy export coun-

tries – the European Union, US, New Zealand, Australia, Argentina, Brazil and Uruguay – boosted production by a whopping 5.2% in the first half of this year. And while that fell below a 4% increase by the second half of the year, it wasn’t enough to stop falling prices.

from 60 US cents/L to 45 cents/L during the same period. Economists had predicted this price drop but expected an eveningout in the short to medium term. But events in China and Russia threw a spanner in the works.

The China buying frenzy of the last two

New Zealand farmgate prices fell from 60 US cents/L at the end of the season to 35 US cents/L last month, while some European producers’ payouts went from 60 US cents/L to 45 cents/L during the same period.

Moynihan says New Zealand farmgate prices fell from 60 US cents/L at the end of the season to 35 US cents/L last month, while some European producers’ payouts went

years ended when Chinese buyers discovered that not only had they overstocked on milkpowder, but their competitors had too.

Moynihan says though the China market may be

perceived as highly organised, in fact it is highly competitive – competing buyers don’t share inventory levels – which sometimes results in anomalies like the one seen in dairy products. She says they will eventually get through the stockpile – it’s just a matter of time.

While internal difficulties were China’s undoing, global matters are the cause of blockages in Russia. In August Russia imposed sanctions on all dairy products from the European Union, US, Canada, Norway and Australia, after the row over the Ukraine worsened.

Moynihan expects prices to start levelling towards improvement by 2016. This view is shared by other industry players who predict the 2014-15 season could be a difficult one for farmers.

Record milk collection NEW ZEALAND’S second-largest dairy processor has set a new milk collection record – four million litres on October 31.

Westland Milk Products, Hokitika, says despite a wet and cold season on the West Coast, shareholders pulled out all the stops to lift production by 5% last year.

By November 29, shareholders had sent 335m L of raw milk to the co-op’s plants in Hokitika and Rolleston, with several months of the season still to go.

Coast shareholders achieved a 3% increase on this time last year and their Canterbury shareholders are up by 14%.

Westland chief executive Rod Quin says the production continues a series of record years for Westland and is a credit to shareholders on both sides of the alps.

“Weather plays a big part in production figures,” Quin says, “but so does farm management practice.

Our shareholders have shown they are right up there in efficiency and herd management.”

Quin says the peak flows stretched Westland’s processing capacity to the limit and he looked forward to the new dryer at Hokitika coming on stream for next season and the UHT plant in

Rolleston following shortly after.

The new plant will enable Westland to process more higher-value products even through the season’s peak when, traditionally, the co-op has had to focus on lower value bulk milk powder production to get the volumes through.

He noted that, despite the glut on world dairy markets, he was not expecting Westland to have any difficulty on-selling the record production, with as much as possible being funnelled into added-value nutritional products for which the market remains strong.

Westland suppliers received a final payout of $7.57/kgMS for milk last season, finishing behind Tatua, Open Country Dairy and Fonterra.

At the same time, chairman Matt O’Regan acknowledged the final payout did not meet Westland’s goal of providing superior returns to its shareholders.

“We have informed shareholders of the main reasons that led to a lessthan-competitive payout for 201314, and assured them our entire focus is on improving that performance considerably.”

Westland’s total revenue for last season rose 46% to $830 million.

RURAL NEWS // DECEMBER 16, 2014

10 NEWS

Farmers in need of better HR skills P ET E R BU R K E peterb@ruralnews.co.nz

A HIGHLY experienced Filipino dairy farm manager says many New Zealand farmers and managers don’t have the people, management and

leadership skills to be good employers.

Bob Bolanos has worked in the dairy industry for 29 years managing staff – including eight years as a farm manager in New Zealand. He told Rural News that, while he

doesn’t wish to be critical about the dairy industry, from what he has seen some farmers seem to think if they can pay a worker a salary, they can manage them.

But Bolanos says this isn’t so and that farmers’

lack of human resource skills is one of the reasons for high staff turnover on dairy farms.

“They often blame the workers or complain that there is not enough ‘qualified’ staff in the industry.

But they do not see them-

Thanks.

The future of the dairy industry is in promoting young people like 2014 Sharemilker of the Year winners Jody and Charlie McCraig through the ranks and developing their leadership and management skills.

FMG would like to thank all Canterbury farmers and growers who contributed to the newly released Irrigator Advice Guide. selves as part of the problem. It’s easy if you have a small operation with a couple of casual staff working under you. But when your business grows and you need to hire full time, permanent staff the need for knowledge in organising labour and managing staff becomes a necessity.”

Bolanos says farmers have farm consultants, accountants, financial advisers, soil and irrigation consultants, vets and even seed reps to go to for advice. But he’s never heard of a farmer hiring a human resources consultant to study their work routines, rosters and management systems.

“Replacing workers is costing the industry, according to DairyNZ, about $125 million each year. Add to that, a shortage in manpower has forced farmers to look overseas to fill the labour gap; not enough Kiwis seem to want to work in dairy.

“Migrant workers now

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play a significant role in farming operations all over the country. This presents a new problem – cultural misunderstanding. Often an employer assumes he can manage migrant staff the same way he manages his Kiwi workers.”

Bolanos says there is lack of material available to explain to New Zealand farmers how to deal with migrant farm workers and to ensure there are no cultural misunderstandings.

He believes there is also a need for farmers to ensure that young New Zealanders coming into the dairy industry have a positive experience and are not put off the industry by bad employment practices.

Bolanos has seen many instances over the years where a young person comes onto a farm full of enthusiasm but is quickly put off the industry by the way they are treated. Some problems relate back to formal training courses which don’t give young

people sufficient practical skills to work on farms and there needs to be better communication between training institutions and farmers.

The other problem Bolanos sees is the lack of good on-the-job training – especially explaining to new workers how a task they are asked to perform fits into the whole farming system.

“For example, a young worker is asked to put up a fence halfway down a paddock. That task may seem meaningless unless they are told that the idea is ensure cows get a set amount of feed each day to produce milk. The issue is about feeding cows rather than putting up a fence,” he explains.

Bolanos says while he knows the dairy industry involves hard physical work and long hours, he’s not sure some young people really understand the nature and commitment that’s required to work in the industry.

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RURAL NEWS // DECEMBER 16, 2014

NEWS 11

Rural women to hang on to $18m bonus the seven regions and used to help people in difficult circumstance, or other charitable purposes.

Some interest from the Access sale will no doubt be used to continue charitable work, says McGowan.

Rural Woman NZ president Wendy McGowan.

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FOUNDATION FOR Arable Research chief executive Nick Pyke says over 600 people attended the organisation’s flagship biennial event Crops 2014 – more than any previous FAR industry event.

“We worked pretty hard to get the programme mix right and feedback to date suggests that the range of agronomy, technology and environmental presentations was spot on,” he said afterwards.

On the day, FAR chairman David Birkett told Rural News he thought there was “a good turnout and good range of speakers”.

He picked out Patrick Stephenson’s presentation, and the fact FAR and the UK’s NIAB TAG are running identical trials, as a highlight.

“We should get some good comparisons of the influences of our management techniques and what the differences are.”

The partnership means to some extent agronomic research can be fast-tracked by getting two sets of data every year, replicating trials in the northern and southern hemispheres.

“It’s a bit like how European plant breeders do seed multiplication here. We can get twice the amount of research information as if we did it just here [in NZ].”

South Canterbury farmer Rutherford Wilson said he believed visiting the Crops event would benefit his business.

“You can make more money in the long-term from coming here for a day than you would from staying at home for the day and getting on with whatever needs doing. If you don’t come to these things, you don’t pick up on the latest information.”

More from Crops 2014 on pages 23-24 in Management.

says McGowan. It has also agreed to fund Rural Women’s present scholarships and awards.

Rural Women used to receive a dividend each year from Access, which was distributed annually to

**

RURAL WOMEN will invest the $18 million proceeds from the sale of Access HomeHealth Ltd, says president Wendy McGowan.

The 97-year-old home healthcare company, which was wholly owned

by Rural Women, was sold to Green Cross Health this month. Access HomeHealth evolved from the bush nurse and housekeeping schemes set up in the mid-1920s by the women’s division of the Farmers Union.

McGowan says it is too early to say what will be done with the money or the interest. But many members have property and assets worth $10 million or more and know “you don’t sell your assets, you make them work for you”.

A place on the Green

conditions of sale, Green Cross agreed to continue to work in rural areas.

Homecare companies can shy away from rural areas because of extra costs and rural work is often done under charity,

**

pamelat@ruralnews.co.nz

Cross board has been offered to Rural Women and that is under consideration.

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by Rural Women, Access HomeHealth had its own board and was run as a standalone business.

“It had grown to be the largest home-based care business in New Zealand and with their vision of where they wanted to go, we didn’t really have the finance to help them get any bigger. We had taken them as far as we could,” says McGowan.

“It was time to look at what we could better do for them, and one was to sell so they can continue with their growth strategy.”

Access is now one of the largest providers of homecare services in the country, contracted to DHBs, the Ministry of Health and ACC. Among a number of

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RURAL NEWS // DECEMBER 16, 2014

12 NEWS

Farmer confidence riding high PA M T I PA pamelat@ruralnews.co.nz

SHEEP AND BEEF farmers should ride the wave of the upward cycle in commodity trade by ensuring they reinvest and build more buffer into their businesses, says Beef + Lamb NZ chairman James Parsons.

Record beef prices are driving confidence among sheep and beef farmers, says Parsons. Lamb and wool prices are also up, all adding to the bottom line. “We are seeing record pricing on beef than we have ever seen before.

That is increasing the confidence among sheep and beef farmers, particularly those with more beef.”

A total 75% of sheep and beef farmers expect

improvement in their own farm businesses in the next 12 months, Rabobank’s quarterly farmer confidence survey to November shows. This “markedly bullish” farmer sentiment had spiked from 48% in the last quarter, says chief executive Ben Russell. Only 2% of sheep and beef farmers expected their own farm’s performance to worsen, down 7% from the previous survey.

Meanwhile 52% of dairy farmers expect their own farm performance to worsen; only 11% believe it will improve and 35% expect similar performance.

Parsons says a “natural human reaction” is that sheep and beef farmers are no longer feeling like

the poor cousins to dairy, which is also boosting their confidence.

“I have long argued that low confidence in the sheep and beef sector [formerly] has been because they were too busy looking over the fence at dairy which has been doing well.

Now we see the flip side where dairy is not doing well and sheep and beef are doing better.”

But the boosted confidence among sheep and beef farmers because of beef prices looking particularly strong was the “real positive”. While “crystal balls” are always dangerous, it looks good for the next 24 months at least, with the US beef herd still rebuilding. Beyond that it is hard to pick.

“Whether it carries on

at the levels we have now…

I wouldn’t be surprised if it comes off a bit, but to the $5/kg range rather than the $4 range for beef.

“Sheep meat is looking reasonable stable – there’s a bit of schedule falling at the moment, a little bit of concern from the markets but the long run average is looking quite reasonable and wool returns have picked up which all add to the bottom line of sheep and beef farmers.”

Parsons says a few dairy runoffs may go on the market and there won’t be so much pressure from dairy conversions this year. More sheep and beef farmers may buy the neighbouring farm but that will just offset the demand drop in the dairy sector.

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Chairman keen to stand again B+L CHAIRMAN James Parsons will be throwing his hat in the ring again for the northern North Island farmer director position which he holds now and for the chairmanship.

Parsons’ ward and the northern South Island, out of six farmer elected wards, are coming up for re-election in February. The chairman is elected at the first board meeting after that.

Parsons says his first year as chairman been very rewarding. “It is a neat sector to be involved in and the Beef + Lamb organisation is in a good space and improving.

“We’ve got lots of programmes we are working on and new initiatives to roll out. There are lots of things we can do better but our trajectory it is looking positive. My predecessor Mike Petersen did a great job, as does chief executive Scott Champion, so it’s nice to step into an organisation that’s in good health.”

North Canterbury farmer Andy Fox is not seeking re-election and will stand down at the annual meeting in March.

Fox has been on the board for nine years. He was first elected to the board of Meat & Wool New Zealand and then to its successor, Beef + Lamb.

Fox says his biggest satisfaction was seeing more levy-funded activity focused behind the farmgate.

Advances in animal genetics through farmer investment via Beef + Lamb were especially good.

“There’s been significant per head production gains from genetics, particularly for the sheep industry, and I can see the production improvements on my own farm. We’re doing much

Beef+Lamb chair James Parsons is seeking re-election.

better than 10 years ago and that’s because of better genetics in our animals.”

Nominations for either farmer director position need to be made to the BLNZ returning officer, Warwick Lampp (0508 666 447) by 5pm on Friday, December 19. Election day will be Friday, February 27, 2015, with voting carried out by post and internet. Voting forms will be posted to registered voters in February.

To be eligible to vote, farmers will come from either of these two electorates and must have owned at least 250 sheep and/or 50 beef cattle and/or 100 dairy cattle on June 30, 2014. They must also be registered on the BLNZ electoral roll by 5pm on Thursday January 29, 2015.

Farmers can register to vote by contacting the B+LNZ returning officer or filling in the online form at: beeflambnz. com/register @rural_news facebook.com/ruralnews

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RURAL NEWS // DECEMBER 16, 2014

NEWS 13

Small step in meat rationalisation THE MEAT industry has taken a small step in rationalisation with Blue Sky Meats buying a Gore beef and venison exporter.

Blue Sky Meats said on December 4 it had agreed to buy Clover Export Ltd and its range of regulatory export licences. “This purchase effectively removes an export licence holder from the New Zealand processing scene and therefore assists industry rationalisation,” says Blue Sky Meats.

The company says it can now offer a wider range of product to global customers, selling them containers of frozen and chilled mixed sheepmeat, beef and venison.

Blue Sky Meats has been Southland’s longestestablished bobby calf operator. The opportunity to now combine this business with cull cow and prime beef processing is expected to interest its existing and potential new dairy farmer suppliers.

“Blue Sky Meats is excited about this purchase, ensuring

growing employment opportunities for Southlanders, providing superior service to its existing and future suppliers and continuing to grow and secure profitability for its shareholders.”

A toll processing arrangement has been agreed with the current owners to continue processing horsemeat for important European markets. The Clover Export workforce and branding has been retained by Blue Sky Meats.

Meanwhile venison exporter Duncan & Co has increased its shareholding in Otago Venison to 100%; it was a founding shareholder in the 21-year old Otago Venison.

Duncan chief executive Andrew Duncan says the move to full ownership reflects its confidence in the deer industry. “We have great customers demanding more venison, at a time when production is falling. So, for us, it’s about securing supply and

NAIT to pull pin on tracker tags GA R E T H G I L LATT

FARMERS WILL need to use different NAIT tags from the middle of next year, says NAIT. It announced recently that the tracker tags used mostly for surplus stock will not be on sale beyond from July 1, 2015.

The three-year transition period allowed for all beef and deer to be registered ends mid 2015. NAIT is signaling a number of changes, including the replacement of the ‘transitional’ tracker tags with birth and replacement tags.

NAIT technical advisor Dan Schofield says while tracker tags will be withdrawn from sale, farmers may continue using their remaining stocks.

He says the shift in tags shouldn’t come as a surprise; they were intended as temporary and often ‘challenged’ farmers manually registering numbers on the NAIT system. “Farmers have told us the tracker tags are cumbersome to use, the numbers are too long and they’re too hard to read. “They were only developed as a temporary measure to get cows from the farm to the works or the saleyards.”

Schofield says new birth and replacement tags will help farmers to record every animal in the NAIT tracking system. They may choose between including a yearly code or running a simple sequential numbering system, which will make things easy for herd records.

Schofield says new tags signal a shift in management with the organisation moving from an educational role into a managerial one.

The organisation will increase the number of farm visits in 2015, where Schofield says they will work with farmers to get records up to standards.

building farmer support for a business that is 100% focussed on venison.”

Duncan acknowledged the role played by Otago Venison founding shareholders Russell and Jaye Brown and Steve and Jenny Martin.

“They have done an outstanding job of

establishing Otago Venison and steering the company through tough times in an industry which can be challenging and vibrant.”

Duncan says despite deer numbers being forecast to decline further in coming years, his company is comfortable

increasing its investment in the industry as it returned to a growth phase.

Duncan & Co exports venison to Western Europe, North America and Asia.

Blue Sky Meats has taken over southern beef processor Clover Meats.

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RURAL NEWS // DECEMBER 16, 2014

14 NEWS

Kiwifruit claim still tied up in legalese PA M T I PA pamelat@ruralnews.co.nz

THE KIWIFRUIT Claim is waiting to see if the High Court will set a deadline for growers to sign up to become plaintiffs, says media spokesperson Matthew Hooton.

This has happened in other class action cases, Hooton told Rural News.

His group had asked for this and he expects that decision to be out early next year.

The statement of claim was filed in the High Court at Wellington in late November and alleges Biosecurity NZ was negligent in allowing Psa to be introduced into New Zealand.

That cost New Zealand at least $885m according to Biosecurity NZ’s own independent study.

Hooton says an initial estimate is that growers who have already signed up to The Kiwifruit Claim have lost $250 million. “All the individual losses have to be carefully calculated in a bit more detail than has been done as yet,” Hooton claims.

The group’s lawyers were talking to the Crown last week about getting agreement to ask the court for the

Estimates of losses by growers already signed up to the Kiwifruit claim are $250 million.

statement of claim, which is now a court document, to be made public because of the interest in the case. A decision was expected at the time Rural News went to press.

At this stage, growers still wanting to join the action can go online to The Kiwifruit Claim website and sign up, Hooton says. A pack will be sent to them; it is recommended they get their own lawyer and legal advice. If

they want to be part of the claim they pay $500-$1500 depending on the size of their orchard. “That is a one-off fee and they wait probably for some years for it to go through the courts.”

Hooton says at the time the claim was lodged, 18% of gold kiwifruit growers by volume had paid their one-off fee and completed the formal paperwork to sign up. A further 9% of gold growers by volume have expressed interest. Eight

per cent of green kiwifruit growers by volume had also signed up and a further 7% of growers by volume who had signed up were yet to be confirmed as gold or green.

The litigation is supported by litigation funder LPF Litigation Funding Ltd. The Claim has clarified security that “if we were to lose and if the court was to order costs against us because they thought the whole thing was frivolous

– which is extremely unlikely – that will be met by LPS,” says Hooton.

Growers wanted to be sure that after they had paid the initial fee they would not have to pay more. “We have made it very clear that the answer is ‘no’.”

Strathboss Kiwifruit Ltd is the representative plaintiff for growers and Seeka Kiwifruit is the representative plaintiff for post-harvest operators.

Hooton says the Government had responded professionally to the claim, with Prime Minister John Key acknowledging growers’ rights to explore the matter in the courts and Government ministers indicating that litigation would be treated entirely separately from other industry issues.

“The Government has made it clear to us that it will not be linking the litigation to other industry issues,” Hooton adds.

“Based on the advice we have received from ministers, kiwifruit growers and post-harvest operators are able to join the claim confident it will have no impact on issues like the singlepoint-of-entry marketing system, Government support for industry R&D or trade negotiations and other market access issues.”

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RURAL NEWS // DECEMBER 16, 2014

WORLD 15

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AUSTRALIA HAS launched its first national pasture and forage genetic resource centre.

The Australian Pastures Genebank is located in Adelaide and will house 70,000 varieties of pasture and forage species.

The collection will include seeds of important pasture species bred and/or collected for use in Australia. Seeds from tropical, Mediterranean and temperate regions will form part of the collection.

Meat and Livestock Australia feedbase manager Linda Hygate says the genebank is important to conserve the diversity of Australia’s current and prospective pasture and forage species.

“Australia has the world’s largest unique collection of pasture and forage genetic resources from across the world,” Hygate says.

“Many have come through visits to many countries with the sole purpose of collecting pasture species with the potential to add value to Australia’s livestock industries and help overcome challenges from a changing climate.”

on preparedness but also recognises that in-event and recovery support is sometimes needed,” says Finlay.

R O T I S O P E D LOW TRADE

MA DE

Bank to store pasture genes

“Beyond this, longterm drought policy is still missing in action.

We need a drought policy framework that focuses

V660farming VARIABLE BELT BALER power 16x3

ND

Drought stricken DROUGHT AFFECTED farmers in New Australian farmers are South Wales and being offered another Queensland have been offered more A$100 million by the Fedfinancial help. eral Government but the farmers want a long-term drought policy.

Farms can apply to borrow up to A$1 million over 10 years at a variable interest rate starting at 3.21%. A$150m has already been loaned to 286 farms in Queensland and New South Wales under two earlier schemes.

Queensland and parts of New South Wales are reeling from the worst dry conditions on record.

Federal Agriculture requires recipients to refi- sure felt by producers as a paperwork for farm houseMinister Barnaby Joyce says the government is lis- nance after five years, “not result of widespread and hold allowance, certainty enough time to recover tening to farmers strugof funding for rural finansevere drought condifrom historically dry congling under debt. cial counsellors, and more tions,” says Maudsley.

“Farmers and money for water their families can “Farmers and their families can control infrastructure control many many things, but not the weather. While and pest animal things, but not the control. we can’t force the rain to fall we can weather. While “These meawe can’t force the provide access to low interest loans so sures will assist rain to fall we can farmers while that our farmers and graziers can better in drought, and provide access to low interest loans manage their finances and businesses will help them so that our farmrecover and during drought and as they recover.” ers and graziers quickly ramp up can better manage their production when the rains NFF president Brent ditions”. finances and businesses come.

Finlay says there’s now AgForce and national during drought and as they farmer lobby National “In the current more to be done particurecover.” environment, a small level larly given the rising debt Farmers Federation are Queensland farmer in certain regions. It wants of government assistance working with Joyce and lobby AgForce says the for many otherwise solid, state agriculture ministers lower interest loans with new 10-year loans will go profitable businesses longer terms, reduced for more drought assissome way to help farmers. tance. ‘”These loans will President Grant Maudsley hopefully assist in allesays the current scheme viating some of the pres-

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RURAL NEWS // DECEMBER 16, 2014

BEEF MARKET TRENDS

MARKET SNAPSHOT 

  



 

 

 









































BEEF PRICES



NI

-10

P2 Steer - 300kg

Last Week

2 Wks Ago

Last Year

6.05

6.15

4.50

5.90

-10

M2 Bull - 300kg

6.00

4.58













3.53

PX - 19.0kg

-15

6.05

6.20

5.72

PH - 22.0kg

-15

6.06

6.21

5.73

Local Trade - 230kg

-10

5.70

5.80

4.43

Mutton

MX1 - 21kg

-10

3.60

3.70

3.60

P2 Steer - 300kg

-5

5.35

5.40

4.25

SI Lamb

YM - 13.5kg

-15

5.88

6.03

5.51

M2 Bull - 300kg

-5

5.35

5.40

4.10

PM - 16.0kg

-15

5.88

6.03

5.53

P2 Cow - 230kg

-5

3.95

4.00

3.10

PX - 19.0kg

-15

5.88

6.03

5.55

PH - 22.0kg

-15

5.88

6.03

5.56

n/c

3.25

3.25

3.40

M Cow - 200kg

-5

3.95

4.00

2.90

Local Trade - 230kg

n/c

5.35

5.35

4.30





  























 











Export Market Demand



Change

  





















 

Last Week

2 Wks Ago

5yr Ave

-7

2.75

2.82

2.08

1.93

NZ$/kg

-12

7.79

7.91

5.58

5.44

 















Procurement Indicator Change

  







Last Week

2 Wks Ago



Last Year 5yr Ave

n/c

1.95

1.95

1.98

1.85

NZ$/kg

-3

8.94

8.97

8.45

8.55

      

 













2Wks Ago

3 Wks Ago





-1%

70.5%

71.9%

70.1%

69.7%

% Returned SI

-2%

67.7%

69.7%

68.0%

72.9%



2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI

-1%

78.9%

79.6%

80.97%

75.5%

% Returned SI

+1%

69.3%

68.3%

74.3%

69.6%





Last Year 5yr Ave

% Returned NI

   







UK Leg £/lb

Change







Procurement Indicator

 





 



 Last Year

95CL US$/lb

       



 

Change

 

  



Export Market Demand











  







 



 

   









MX1 - 21kg





 

Mutton

Slaughter 





5.68

3.48

 



5.70

6.16

4.80





6.18

6.01

4.80





6.03

4.70





PM - 16.0kg

4.70





-15

-15

YM - 13.5kg

-10





Last Year

-10





2 Wks Ago

M Cow - 200kg

Slaughter



NI Lamb

Last Week

Change

c/kgCWT

P2 Cow - 230kg

SI



 

LAMB PRICES Change

c/kgCWT



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

-5

6.70

6.75

6.70

7.21

SI Stag - 60kg

-20

6.75

6.95

6.90

7.56



1 Tag

2 Register/activate

Tag your cattle and deer before 6 months old, or before they move off farm – whichever comes first.

Register animals within 7 days of being tagged to activate their NAIT tag.

RURAL NEWS // DECEMBER 16, 2014

NEWS

PRICE WATCH



BEEF

WOOL PRICE WATCH Change

04-Dec

27-Nov

Coarse Xbred Indic.

+1

5.17

5.16

4.95

Fine Xbred Indicator

+7

5.48

5.41

5.18

Lamb Indicator

-

-

-

-

Mid Micron Indic.

-

-

-

7.37

Beef prices reached the top

Indicators in NZ$

Beef slaughter in the NI is at maximum capacity with some delays heading into 2015. While the majority of the kill is reportedly bulls and steer, there are areas where cows are still making a good portion of the kill. Prices have come back over the last two weeks, and as the US market continues to fall this trend is likely to be repeated as processors pull back some margin. In the SI slaughter numbers are also increasing, schedules have largely held steady, but there is some signalling that the downwards slide will begin soon.

NZ beef pushes US market over the edge Australian beef has been shipped in large volumes to the US for months, filling the supply gap left by declining domestic slaughter and achieving historically high prices. NZ was hopeful that by the time our kill came on stream, Australia would be out of the picture, or there would still be room for our product. Unfortunately neither has proved true. Australian product is still swamping the market, and the addition of NZ supply on top has proved to be too much for the market to handle, and prices have tumbled. With supply from both NZ and Australia only expected to increase, expect to see further declines in imported prices before Christmas.



LAMB Lamb slaughter in full swing Lambs are now flowing steadily through the works in both islands, with delays reported and some not able to meet all committed numbers. Prices came back around 10-15cpk last week with the range in the NI between $6.20-$6.30/kg gross and in the SI $6.00$6.10/kg. Further declines are expected as the month progresses.

Demand for mutton is a mixed bag as some processors are keen to see the numbers come in, and others would prefer not to have any.

Schedules generally reflect this. Mutton schedules are also starting a trend of steady retreat each week as weaning begins in earnest around the island and slaughter numbers increase



Store lamb prices ease as dry conditions kick in Paddock prices for store lambs in the NI retreated further last week to around the $2.50-$2.60/kg level. There are a lot of lambs under 25kg available that have no buyers. For those that have to sell them, they are taking a price hit with anything from $2.00-$2.40/kg being paid. Further declines in this market are expected but a level is likely to be found before Christmas. Dry condtions on the east coast of the SI are seeing plenty of numbers hit the market, but with the Southland buyers not yet in the market as cold, wet conditions have hampered growth, there is little demand and prices are dropping.

Auctioneers are struggling to find a market for very long term lambs under 22kgs with most selling under $2/kg. Paddock prices eased last week with many quotes between $2.45–2.60/kg, and most lambs selling around $2.55/kg though this is expected to ease further before Christmas.

DAIRY PRICE WATCH Last Year



        





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

Last Year

-349

3326

3675

5113

-20

3085

3105

5722

-146

3085

3232

6087

-58

4821

4879

5783

   

 







 









 











 



 

 

 



 

 









27-Nov

Last Year

Overseas Price Indicators Indicators in US$/kg Coarse Xbred Indicator Lamb Indicator Mid Micron Indicator

04-Dec

-6

4.01

4.07

-2

4.25

4.26

4.26

-

-

-

-

-

-

-

6.07

4.08





Indicators in US$/T Butter









Last 2 Wks

Prev. 2 Wks

Last Year

-50

2400

2450

4700

-150

2400

2550

5000

-100

3750

3850

4750

Change -313

Skim Milk Powder Whole Milk Powder Cheddar

2588

2900

4200









 











 













 



       

  











vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year



0.786

0.769

0.821

Weak demand from China still impacting WMP

0.628

0.631

0.621

0.601

UK pound

0.497

0.500

0.485

0.503



Aus dollar

0.927

0.922

0.897

0.907

Japan yen

93.23

92.82

88.55

83.64

 

  Sep











Nov

Dec

Jan

Feb



 











UK Pound

  

 Oct





 





0.778





US Dollar



Euro





 

 

US dollar

Euro

 



       

CURRENCY WATCH





Overseas Price Indicators

Change

Fine Xbred Indicator



DAIRY Whole milk powder (WMP) prices have continued to underperform through November as demand from China remains sluggish.

Production in NZ has been strong, but slightly down in Australia as more milk is diverted to other products. The most recent GDT event saw back-end contracts for WMP lift, implying that while prices are expected to improve, it may be further off than previously expected.

Skim milk powder supplies are outstripping demand and while demand is reportedly good, the building supplies are creating some buyer wariness and may see prices continue to retreat. Demand for butter is good and keeping prices elevated, whereas cheddar prices continue to struggle under increasing global supply.

Prev. 2 Wks







Last 2 Wks

Change



 













3 Record movements Record all farm-to-farm movements for animals on and off your property within 2 days.

0800 624 843 www.nait.co.nz

RURAL NEWS // DECEMBER 16, 2014

18 AGRIBUSINESS

Landcorp sets on-farm safety standards STATE-OWNED FARMER Landcorp is setting out to model onfarm safety with a wide range of measures to safeguard staff.

This includes regular checks that staff are safe and a ‘black box’ system

for its quads.

At Waikite Station, near Rotorua, manager Peter Strawbridge has various steps to safeguard his four staff, who often work alone. Each is issued with a radio telephone, so is each

of their partners in their homes on the property.

The RTs are programmed so that if the farmer doesn’t respond within a preset time an alert goes out to other staff.

Also, a speaker on the

RT automatically activates after a short time in case, say, the farmer is trapped or injured and can’t physically use his RT. He can then use the speaker to call colleagues.

“It’s also got a GPS so

if there is an accident we can put a helicopter right where the RT is,” explains Strawbridge.

“The problem of weekends, when we are often out working by ourselves and no one else is around,

Waikite Station manager Peter Strawbridge has various safeguards in place for staff.

has now been covered. We have cellphone numbers programmed in so that if a person is in trouble it will ring the cellphones on the farm.

“Safety to me is paramount and you have to look after your people.

I don’t want someone’s wife to ring up saying her husband hasn’t returned home, so we monitor everyone’s movements.”

Rules on quads are strict: no passengers, and all riders have to wear helmets and high viz gear.

Landcorp’s new system Farm Angel ‘black box’,

fitted to the quads, records a machine’s previous hour of use, including speed and terrain, to help investigators see what happened before and during an accident.

Strawbridge says the RT system cost about $7000, an irrelevant cost considering its potential to save a life. “I don’t care how much it costs, I want to make sure my team is 100% safe.”

Strawbridge says other contractors coming onto the farm are also given RTs and are fully linked into his safety system.

Protection from IRD penalties TAXPAYERS WITH fluctuating income can now avert the risk of incurring hefty IRD late payment penalties and use of money interest (UOMI) in the event they have a better-than-expected financial year, says Tax Management NZ. The company says its new product Tax Shield allows a taxpayer to pay an upfront fee to cover the portion of their income that is fluctuating.

Fluctuating income can result in tax is underpaid and in late payment penalties of up to 20% per annum and UOMI of 8.4%, chief executive Chris Cunniffe explains.

But Tax Shield ensures that in the event a taxpayer earns the extra income, and so has a higher tax bill, any late payment penalties and UOMI incurred up to the amount of tax covered will be eliminated when they pay the principal and an exercise fee.

“We have developed this to remove the anxiety of late payment penalties and UOMI.” The amount of tax set aside for taxpayers is ‘datestamped’ and held in an IRD account administered by the Guardian Trust, says Cunniffe.

Late payment penalties and UOMI are eliminated because the IRD treats the tax as being paid on time when it is transferred to an individual taxpayer’s IRD account.

Cunniffe says it is ideal for taxpayers whose income is difficult to predict and are concerned about exposure to IRD late payment penalties and UOMI of up to 28%.

Taxpayers can secure cover at their next provisional tax date until February 7, 2016.

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RURAL NEWS // DECEMBER 16, 2014

AGRIBUSINESS 19

Couple on road to ownership lived or worked in this area before and we came over for a look at the farm the first day and then were interviewed as a couple by the board the next day,” says Fraser (26).

“We really liked the property and we could see the opportunities it could offer us,” adds Kendra, (23). “This was the first manager’s position we had interviewed for so it was a big deal for us.”

They learned later that night that they were successful, and a month later made the move east in time for their November 17 start date.

“It’s all still fairly new but we are keen to get stuck in,” says Fraser, who has worked on farms throughout the country including Molesworth and Otupae Stations. “A lot of the day to day stuff we have done before but

SA RA H C H A RT E R IS

A YOUNG farming couple have taken over the reins of a noteworthy Hawke’s Bay farm gifted to the nation almost 40 years ago.

Fraser Taylor and his partner Kendra Pye were selected from a strong pool of candidates to manage the McRae Trust Farm, 8km from Wairoa, near Frasertown.

The 622ha property was bequeathed to the nation in 1975 and is a working sheep and beef farm committed to the improvement of farming lands and sustainable methods.

The couple, who both grew up on farms in Taihape and have pursued careers in farming since leaving school, said the opportunities for them at McRae Trust were evident from their first visit.

“Neither of us have

Visionary benefactor MISS ELIZA May McRae drew up a will gifting her farm property for the benefit of the people of New Zealand. She had inherited the sheep and beef hillcountry block from her father, Farquhar McRae, a one-time Scottish shepherd who became a prosperous station proprietor.

The property is 622ha and includes steep hill-country ridges and gullies, easy sloping intermediate terraces and river flats and fans.

Stock: 5500 units – 2000 breeding ewes plus 550 replacement hoggets; 170 cows; total cattle wintered 550 including finishing bulls.

The entire farm, including three Queen Elizabeth II covenants, is protected under a perpetual lease.

Fraser Taylor and Kendra Pye are the new managers of the McRae Trust Farm.

farming bulls will be new and it will be a lot warmer and drier here over summer than we are used to. But what better posi-

tion for us to be in with all of the board members to learn from, who know so much about this farm and farming in general.”

Trust chairman Peter Manson has no doubt they can bring the goods, having impressed the board with their work history and skills. “A management position is their next logical step and after an early career spanning almost all aspects of hill country sheep and beef farming they are capable of filling this role,” says Manson.

“They have energy, experience and enthusiasm for the role… a team approach to farming, strong combined knowledge and shared skills.

Fraser has been selected for his understanding of the issues facing the McRae Trust farm, decisionmaking ability and practical skills.”

Manson is also confident the couple can

continue the successful work of previous manager Michael Cooney, and embrace the vision upheld by former managers and the trustees over the past 39 years.

“Mike has left the property in an excellent position for further growth.

He managed and oversaw a comprehensive development programme and achieved spectacular gains in livestock performance.

“A key role for the property is as an implementer and demonstrator of farming ‘best practice’ and, while striving to improve profit, the trust has a comprehensive trust deed which must be managed. The deed requires the trustees to… [preserve] native flora and fauna and [uphold] horticultural and silvicultural goals and these have to be managed alongside the business finances.”

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RURAL NEWS // DECEMBER 16, 2014

20 OPINION EDITORIAL

EDNA

How did they get it so wrong?

WITHOUT DOUBT last week was a bad one for Fonterra and its shareholders.

The cooperative, New Zealand’s largest company, was savaged by an independent inquiry into the handling of its infamous WPC80 false botulism scare last year.

In its 103-page report, the inquiry team, led by Miriam Dean, QC, confirmed what most people knew from August 2, 2014 - Fonterra’s response to the WPC80 case was woeful at best.

Also, last week the co-op’s directors announced a 60c/kgMS drop in this season’s forecast payout to its 10,500 farmers.

Normally, what 10,500 farmers get paid for their milk is irrelevant to townies. The 60c drop means a $6 billion reduction in potential earnings from the dairy industry this season, compared to last season’s record $8.30/kgMS payout; huge implications for the national economy.

So, how did Fonterra find itself on the ropes last week?

No one can point the finger at the co-op for the millions of litres of extra milk produced by happy farmers in the US and the EU. The extra milk is suppressing global milk prices. The question Fonterra farmers will ask is why the co-op’s management and board did not see the warning signs earlier.

The season started with an opening forecast payout of $7/kgMS, announced in May this year; slashing $2.30/kgMS from the payout within six months raises serious questions about the coop’s forecasting ability.

The co-op says farmers expected and understand the sharp drop in prices; the writing has been on the wall for some time, but did Fonterra have to take its farmers on a roller coaster milk price ride this season?

The co-op says it will trim costs and defer capital expenditure, where possible, to generate more cash for farmers. Will it now defer major investment in global milk pools – championed by chief executive Theo Spierings – and touted as being crucial to Fonterra’s future? What is most important to Fonterra’s future as a global player is getting its food safety credentials right.

The co-op says at the time of the recall of WPC80, it did “what was right based on the evidence we had”; Fonterra could use the same excuse for explaining how it got this season’s forecast payout so wrong.

However, the WPC80 inquiry report finds its response was far from satisfactory. Many farmers would come to the same conclusion as they milk cows over the festive season and rue the $6 billion they will never see.

RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 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

“Did you get a resource consent before cutting these trees?”

THE HOUND Eternal optimism THE HOUND’S boss got a call from an agitated Southland dairy farmer, in early December, who wanted to share his predictions on what Fonterra might do with its upcoming (at that time) payout revision. “I reckon the ‘invisible man’ – that’s what we call little Johnny (Wilson) down this way – will get up at the meeting and announce a 50 cent/ kg increase.” And how did our southern friend come up with this prediction, the editor enquired? “He’ll have found the 50 cents they lost last year,” our southern correspondent sarcastically replied.

Want to share your opinion or gossip with the Hound?

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

Tosser?

Avoidance

Bad Feds

THE HOUND is underwhelmed by the efforts of NZ First’s Ag spokesman Richard Prosser to gain greater media attention.

Better known for his infamous ‘Wogistan’ racist rant, when he had his pocket knife confiscated a couple of years back before boarding a flight, Prosser has been making bizarre claims of late. This old mutt suspects NZ First’s new chief of staff and former Feds PR man David Broome is behind the move to raise the party’s profile in the ag sector. But he reckons all he’ll achieve will be to get the party’s ag spokesman laughed at and called a name that rhymes with Prosser but starts with a ‘T’!

YOUR OLD mate was taken aback at a recent survey carried out by Victoria Milan – a dating website for attached people looking to cheat [apparently these kind of sites exist] – on the best ‘excuses’ given by cheaters’ partners to get out of bedroom shenanigans. The top 5 Bedroom Excuses were: #1 ‘I am very stressed, it’s been a hard day’ #2 ‘The kids might hear us’ #3 ‘I’m watching the movie, let me finish it’ #4 ‘I don’t feel like it right now, let’s do it later’ #5 ‘I have a headache’

THE HOUND understands that Fed Farmers’ new PR man – infamous liberal cause celebre Don Carson – is already causing stirrings in conservative circles. Business reporter Fran O’Sullivan recently ticked off the Feds about the headline on its press release issued on the South Korean free trade deal - “better than nothing” – for being ‘remarkably ungracious’.

She added that the headline demonstrated ‘a lack of realism’ when it comes to assessing just what gains are possible through bilateral trade deals for agriculture outside of the WTO. Imagine that – the feds being told to get real.

TECHNICAL EDITOR: Andrew Swallow ................... Ph 03 688 2080 PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 Becky Williams ........................Ph 09 913 9634 REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................ Ph 09 913 9630 Peter Burke .............................Ph 06 362 6319 Tony Hopkinson ......................Ph 07 579 1010 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628 WEBSITE PRODUCER: Emily Gordon .......................... Ph 09 913 9621

Fonterra frightener “BE AFRAID, be very afraid,” said Geena Davis’ character Veronica Quaife in the 1980s film The Fly. Today, the Hound suggests, wise old sheep and beef farmers might say the same thing to youngsters looking to follow in their footsteps.

Why? Because of Fonterra’s proposal to create an equity partnership trust to help its shareholders, or prospective shareholders, buy land for dairying and probably dairy support; this promises to shut youngsters doing anything other than dairying out of the market.

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

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

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

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

ABC audited circulation 81,188 as at 30.06.2014 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 16, 2014

OPINION 21

Follow the science in pasture quest BRIX AND Pasture Energy Scale is a Sustainable Farming Fund (SFF) and farmer project exploring the relationship between grass Brix and pasture metabolisable energy (ME).

First principles would say the relationship is partial and highly variable, at which point a question might be asked about the use of taxpayer money through the SFF. The answer might be that ‘rapid measurement’ will give an advantage, but the scientist would then point out that being able to make an unreliable measurement rapidly doesn’t improve its reliability.

In addition, the aim of the SFF project is to “create awareness of opportunities to use the brix and pasture energy scale technology to improve the professionalism of farming by lifting the value of produce leaving the farm and reducing

costs”. This is quite a jump when the actual relationship of Brix to ME is variable and no relationship to product quality has been shown for milk, meat or fibre.

Brix has been used in the wine and fruit industries to estimate sucrose as an indication of potential fermentation or sweetness (and hence quality).

It doesn’t measure exact amounts, however, and nor does it measure all components that contribute to ME. Dr Doug Edmeades, winner of the Hamilton City Council Agricultural Science Prize at the Waikato Kudos Awards 2014, points out that the amount of soluble sugar in a pasture doesn’t indicate anything about the feed value of that pasture to a ruminant animal: ruminants can use all the parts of the plant carbohydrate, from the readily digested simple sugars through to

the complex celluloses.

The refractometers used for measuring Brix are calibrated for sucrose, but other dissolved sugars affect the readings, reducing accuracy as the SFF has already found. In addition, water availability affects the moisture in which the sugars dissolve. Brix in forage crops is influenced by many management and environmental factors such as ambient temperature, soil moisture content, fertilisation, time of the day samples are collected, as well as the maturity and part of the plant sampled.

In drought, for instance, plants tend to concen-

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trate water soluble carbohydrates in the roots and tissues to survive. In contrast, nitrogen applications can result in a decrease in dissolved sugars since they are likely to be redirected to growth. This means that a low Brix pasture could be growing rapidly, whereas a high Brix pasture hasn’t been converting the sugars created from photosynthesis into ‘growth’.

In research with high sugar grasses, Brix has been implicated in increased milk production because of increased

dry matter intake. The research also indicated that Brix changed according to the preparation method of the grass samples, and within 120 seconds of being taken.

DairyNZ has many tables of ME for different forages for different times of the year, collated from research and actual measurements of ME, not proxy measurements.

Looking them up will take less time (depending on broadband functioning, admittedly) than preparing a Brix sample, and give

a far better indication of likely energy availability than the proxy Brix assessment.

To ignore the research that has been funded by New Zealand taxpayers and farmers (through levy payments as well as taxes) is illogical. To fund research that has been shown by the scientific process not to have positive results is a waste of time and money.

It is acknowledged there have been mistakes in the past, and reinvestigation has resulted in dif-

ferent results, but in the particular case of Brix a simple examination of first principles reveals the fallacies.

Science advisors are needed on all researchfunding bodies in order to select projects appropriately. Science knowledge in conjunction with farmer practicality and policy overview gives the best chance of successful outcomes – which is what we all want for the sector.

• Jacqueline Rowarth is professor of agribusiness, The University of Waikato.

RURAL NEWS // DECEMBER 16, 2014

22 OPINION DON’T BLAME OTHERS, LOOK AT THE INDUSTRY! I GET annoyed at hearing high school careers teachers being criticised for not promoting agriculture.

The critics should visit schools as I did for many years while tutoring at the Waikato Polytechnic, seeking recruits for our courses.

I would be met by the careers teachers (they were all women) and taken to the library, as their ‘broom cupboard’ offices were too

small for meetings with students. On the office walls were shelves bursting with box files ranging from ‘A’ for army ‘Z’ for zoo keeper – all expecting promotion by the careers teachers.

So please cut the criticism of these teachers, and don’t start on agricultural teaching providers and the Primary ITO either, or begin calling for a return of the old farm cadet scheme.

Instead, get stuck into farmers. They are the first port of call to change the image of the industry and make it attractive to young folk. That’s where the recruitment problem starts and ends.

Dr Clive Dalton Hamilton Farmers need to make ag sector attractive to young people.

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RURAL NEWS // DECEMBER 16, 2014

MANAGEMENT 23

Early drill, but not for yield The Foundation for Arable Research held its biannual crops event earlier this month. Andrew Swallow relays a few of the agronomic messages and commercial opportunities on show.

BEWARE SOWING wheat super early, but standard plant populations may need a rethink to push yields to new levels, leading UK agronomist Patrick Stephens told visitors at Crops 2014.

The reason many growers in the UK sow wheat in the equivalent of early March or even late February isn’t to increase yields of those early paddocks, but to reduce the risk of not getting all wheats sown if the weather turns to custard, he explained. “It’s to maximise potential across all the crop.”

Going too early could “break the system”, he warned, producing excessive canopy where disease “festers” resulting in increased spray costs yet lower yields.

With fewer new fungicides coming to market, using other tools such as cultivar resistance, sowing date and possibly cultivar blends, could be necessary to increase yields while reducing the risk of diseases developing resistance to fungicides.

However, there’s a trend for the

It’s in the bag Canterbury University engineering students discuss their waterfilled irrigator anchor invention with growers. “We believe our solution’s stable to about 160kmh. That’s about twice what was experienced in the spring [wind] storms,” Tom Addis, one of a team of four who designed the solution, told last week’s FAR Crops 2014 event. FAR chief executive Nick Pyke says the design is patented and they’re talking to firms that might take it to market.

highest yielding varieties to have high fungicide responses, suggesting more disease resistant cultivars may use some of the light energy they capture to fight disease leaving less to go into yield.

Stephenson said several studies show average wheat yields across Europe have stagnated since the 1990s so work is underway to see why and how a rising trend might be resumed.

UK agronomist Patrick Stephenson talks with a local grower at Crops 2014.

Putting phosphate fertiliser “down the spout” at drilling with seed, once a common practice but largely abandoned in the interests of getting larger areas sown faster, could be worth a revisit as trials have shown responses even at relatively high soil P levels.

Similarly, soil nitrogen supply (SNS) tests provide useful figures to calculate fertiliser inputs up to a point, but at high

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SNS readings growers shouldn’t rely on the soil providing all the crop’s needs, even though the SNS level may appear to have enough nitrogen in it for the target yield.

The industry standard 450 ears/ m2 crop population may also need a rethink as a UK project called the Yield Enhancement Network has found the highest yielding crops today have about

700 ears/m2.

However, Stephenson warned growers not to read too much into the use of eight trace element applications on the highest yielding crop. “They spent about £360/ha more, including £193 on traces, and it yielded 0.1t/ha more….

There are a lot of other things in play before we get to snake oil.”

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RURAL NEWS // DECEMBER 16, 2014

24 MANAGEMENT

No excuses for spray drift A N D R EW SWA LLOW andrews@ruralnews.co.nz

WHEN YOUR spray applications drift they can cause thousands of dollars of damage to neighbouring crops and “there’s really no excuse,” says a US scientist now working in New Zealand.

Crops 2014 speaker Rory Roten, of Lincoln Agritech, told Rural News “there’s plenty of technology out there, inexpensive or expensive, to prevent [drift].”

He gave two presentations at the Crops 2014 field day outlining some of those, but the most common mistake is to drive too fast, he says. “I wouldn’t go faster than 10km/h but I’m not a farmer,” he told one of his audiences, acknowledging there is a need to get sprays on in a timely manner.

When spraying, keeping going even though the wind has increased to exceed what’s acceptable is another common reason for problems, as is having the boom too high over the target.

The advent of GPS guidance on

sprayers means relatively old solutions, like droplegs that put spray into the crop

Lincoln Agritech’s Rory Roten says GPS guidance is giving some old drift reduction technologies, such as dropleg sprayers, a new lease of life.

canopy, or hoods to keep spray off crops but on weeds growing between rows, have

renewed potential, he added.

A drift study by Lincoln Agritech found various drift reduction technologies (DRTs) cut spray reaching 2-20m downwind of the target area by 34-60% compared to standard 110o, 03-sized nozzles.

However, “most alarmingly”, air-assisted booms increased drift with 63-81% more spray deposited 10-40m away.

Simply changing standard nozzles for ones designed to reduce drift, such as air induction nozzles, is “one of the cheapest options,” Roten told the field day crowd.

Such nozzles substantially reduce the number of very fine, drift-prone drops a sprayer produces, he explained, and it is that more uniform droplet size distribution, rather than the claimed creation of larger drops with bubbles in them, that reduces the drift, he suggested.

Excessive pressure through any nozzle is likely to increase fine droplets, hence drift, so should be avoided, and adjuvant effects on spray quality should also be considered. “If you can cut the fines, you are automatically going to cut drift.”

Grain and graze from oilseed rape AUSTRALIA’S GROWERS are grabbing four-six weeks autumn or winter grazing off oilseed rape crops with no impact on grain yield, CSIRO agronomist John Kirkengaard told growers at Crops 2014.

“It adds to the bottom line and helps pay for the canola crop up front.”

In some of the colder regions growers’ long-season EU-bred winter cultivars sown in February or March are stretching that grazing window to three months “and they’re still getting reasonable yields at the end,” he added.

FAR has been investigating the potential to replicate that here as most growers are using those cultivars anyway.

“There was no significant difference in grain yield from grazing off about 2000kg of dry matter [per hectare] in late May and June,” FAR’s Jen Linton told the field

day crowd.

“But there was a significant difference [reduction] when we grazed too hard, for too long, beyond stem elongation.”

Due to difficulties sourcing sheep to graze trials in winter 2013, plots were mown instead and “looked really good” coming into harvest, said Linton. However, a windstorm wrecked the trial, thrashing so much seed out of the pods of mown and untouched plots that the data was meaningless.

Linton’s hoping similar work this year, including experiments removing just the main raceme, will come to fruition.

“Oilseed rape can compensate very well for defoliation if it has time.”

Grazing with cattle hasn’t been attempted, the concern being they would be too hard on the crop and soil, particularly in wet weather.

RURAL NEWS // DECEMBER 16, 2014

MANAGEMENT 25

Is there money in trees?

G RA H A M W EST

WHEN DISCUSSING farm forestry I’ve often heard farmers comment “there’s no money in trees” and recount a story of a woodlot harvested that barely showed a profit and wasn’t worth the hassle.

A little questioning usually reveals the location of the woodlot wasn’t great and the terrain was challenging. Despite this, the result becomes embedded in the local community, and like the feedback on restaurants, the bad experiences travel furthest.

But I have also heard of cases where the sale of a woodlot turned the annual loss to a profit, or saved the family farm. These stories tend to be kept close

mation on woodlot age, volumes and revenues is available. Not all woodlots are the same; they can vary by species, breed, age, stocking, pruning, productivity and access.

The following data from 84 woodlot sales is for a region in the North Island. Average net return to the grower was $20,300/ ha, but ranged from $2500 to $72,500/ha. The average total payment for the woodlot was $275,000, ranging from $15,000 to $1.6m (see figure 1).

Clearly, there are woodlot owners that have made very little from their investment while others must be very happy. If we look at the range of returns recorded, about 20% of the woodlots made 10,000/ha or less, but about 32% made $30,000/

tate the harvesting of the second crop or give better access to the back of the farm.

So, how did one grower make more than $75,000/ ha? This woodlot had a good yield at 800t/ha, was pruned, had a short distance to market, with low cost roading and groundbased harvesting. Next

time you pass a mature woodlot near a major highway, consider the value of the crop. At maturity it’s probably worth more than $40,000 a hectare. What I see is a lot of money standing there, especially when I multiply it by the woodlot size.

• The opinions expressed in this article are from the

author only and are not official Scion statements.

Graham West is a Principal Technologist at Scion, the Crown Research Institute dedicated to forestry, wood product, biomaterial and bioenergy development.

Count the dollars: easily accessible, well managed woodlots can yield over $40,000/ha, writes Graham West.

Figure 1

because of pride and reputation.

Why do such very different experiences occur?

Like all land use options there is considerable variation in the skill of the practitioner. A lot of woodlots have been harvested in recent years and many more are near maturity. A look at past woodlot sale data helps us understand how much of this is true and what’s going on where these very different experiences are reported.

I am fortunate to have access to sale records from forest consultants and companies arranging woodlot harvesting and marketing of logs. The information is anonymous and only the basic infor-

ha or more.

Trees need tending (pruning and thinning) and get better with age.

However, the major factors that affect woodlot profit are the costs of harvesting, roading and transport. Wood is very wet - water is 50% of the weight - and heavy to move around. The best location is where the harvesting and transport are easy and costs are low.

Sometimes, if you take a long term view it is worth planting less accessible land. For example, a steep gully at the back of the farm will not make much profit, but if the block is large enough, it may pay for the roading required for trucks. This may facili-

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26 ANIMAL HEALTH

Swede findings next week?

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

DAIRYNZ SAYS it is “finalising the findings” from initial blood and tissue samples from cows affected by what appeared to be swede toxicity problems last

winter in Southland.

“We are still working through the interpretation of these findings with the aim of releasing a statement by late next week,” marketing manager, productivity, Warren Twohey told Rural News

last week.

Photosensitivity, weight loss and illthrift symptoms were reported in herds grazing swedes, most often of the HT-type, last winter and spring, resulting in hundreds of fatalities and many more clinical and,

probably, sub-clinical cases.

DairyNZ mounted a response after the issue was raised by local vets, including Vet South’s Mark Bryan.

Last week, Bryan said as vets and DairyNZ have compared their case histories it’s been surprising how many there are. “Whatever

rubber will hit the road when we start getting six week in-calf rate results through.

“This year in particular it’s going to be important to get that early scan in.

“Most people are doing it now anyway but we’re really going to need to know that six week in-calf rate and whether

“It seems there’s been a swing away from the HT cultivars in the region and much more fodder beet planted. “Of course the risk of that is it’s not an easy feed to manage and we could see a lot of problems with acidosis.” – Mark Bryan Vet South’s Mark Bryan.

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initial estimate we had would have probably been conservative.”

Concerns there would be lasting effects on the animals that survived, such as reduced fertility, so far haven’t eventuated.

“But it’s early days [with mating]. We didn’t see any evidence of increased endometritis when we Metrichecked these herds but the incidence was low this spring in any case. The

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cows are going to be late calvers.”

Bryan says it seems there’s been a swing away from the HT cultivars in the region and much more fodder beet planted. “Of course the risk of that is it’s not an easy feed to manage and we could see a lot of problems with acidosis.”

However, losses due to acidosis on fodder beet have never to date come close to what

happened with swedes last winter, he says.

Twohey says while the blood, liver, kidney, and other internal organ test results should be available this week it will be April at the earliest before plant sample results are available.

“The delay in getting the analysis done is due to there being no New Zealand laboratory accredited to do the required plant analysis.

We are currently working through the process of having an accredited lab established.”

A second, more in-depth survey of farms affected, including farmer interviews, is ongoing but should be complete by Christmas, says Twohey, with findings hopefully collated and analysed for presentation by February. @rural_news facebook.com/ruralnews

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RURAL NEWS // DECEMBER 16, 2014

ANIMAL HEALTH 27

Earlier lepto jabs recommended THE NEW Zealand Veterinary Association has added its voice to recent reminders to protect herds and people from leptospirosis and is urging an earlier start to vaccinations.

“New Zealand has one of the highest rates of leptospirosis infection in the world with 120 human cases reported each year,” points out Dr Jenny Weston, president of the NZVA’s Society of Dairy Cattle Veterinarians.

Weston says incidence may be even higher than that “as there could be many more unreported cases, with recent research suggesting there could be up to 40-50 undiagnosed cases for every case that is reported.”

The NZVA recommends vaccinating young stock against leptospirosis early and maintaining protection through animal boosters. Weston warns it’s a highly infectious disease and passes from animals to humans with farmers, vets and meat processors most at risk of contracting it.

Many people who con-

tract the disease mistake the symptoms for a bad dose of the flu. She says people should seek medical attention to obtain the correct diagnosis and treatment. “It’s a serious illness which can be fatal.”

Common practice has been to vaccinate calves at six months of age to stop them spreading the disease but recent evidence suggests this needs to happen at the earlier age of three months, says Weston.

“Delaying vaccination can result in those animals, if exposed to infection, continuing to ‘shed’ – or pass leptospirosis organisms in their urine – when they’re adults. The most critical aspect of leptospirosis control and vaccination is to stop animals shedding.”

Weston says following NZVA’s Leptosure risk management programme (see panel) means you can be confident that all ‘practicable steps’ are taken to prevent leptospirosis infecting people. Expert advice from a local vet should be sought and if the farm is a high risk farm, to

vaccinate earlier. Springborn calves should be vaccinated before Christmas, and if they’re going off the property, vaccination should be before they leave.

The NZVA recommends vaccinating young stock against leptospirosis early.

NZVA has worked for years with leptospirosis researchers at Massey University and with Rural Women NZ to promote the importance of leptospirosis control.

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28 ANIMAL HEALTH

Hind feeding crucial to deer farm profits TO GROW premium weaners, deer farmers must maintain their lactating hinds at a body condition score of at least 3.0 on a 5-point scale.

This is the conclusion that can be drawn from a one-season trial by AgResearch showing that when hind body condition scores (BCS) dropped

from 3.5 to 2.8 calf growth began to suffer.

“Feeding hinds well during lactation should pay dividends,” says trial leader David Stevens.

“Calf weaning weight is a major factor in determining whether a young animal reaches slaughter weight for the premium chilled market in

spring and in ensuring that female replacements are ready for the stag at 15 months.”

Another AgResearch scientist, Geoff Asher, says that when pasture covers drop below 1200kgDM/ ha, hinds that start lactation in good condition can protect the growth of their calf better than lighter

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Feeding hinds well during lactation pays dividends, according to research.

hinds. This is because they use their fat to buffer the calf from adverse grazing conditions. “However, after about 80 days of restricted feeding, even the hinds that were originally in good condition were not able to buffer their calves.”

In the experiment, 240 hinds with a BCS of 3.5 were split pre-calving into two mobs. One was fed to maintain condition at 3.5 and the other to lose condition to BCS 2.5 before calving. After calving they were again split, with some on restricted feed (under 1200kgDM/ha) and some on ad lib feed (2400kgDM/ha). Calves were weighed every three weeks.

Lighter hinds on

restricted feed had the lightest calves at weaning (47kg). Their calves were forced to graze pasture early, as their mothers were not lactating properly.

On the other hand, hinds that were light at the start of the experiment picked up quickly if they were well-fed during lactation, producing calves with similar weights (around 57kg) to those weaned off heavier hinds than had been well fed.

This shows that pasture restrictions during lactation have a bigger effect on calf weight than the original condition of the hind.

Providing pasture at greater than 2400kgDM/ ha during the high allowance treatment resulted

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in calves that were significantly heavier than calves on low allowances during lactation. This was regardless of the feeding regime pre-calving. This supports previous findings that feeding after calving is most important in species rearing a single offspring.

“The messages hold true for later restrictions – like in December/January. It is all about the rate of loss in body condition,” says Stevens. “Once their body condition hits 2.8 (from 3.5) hinds basically start to turn-off lactation.”

Monitoring condition of the hind at midlactation is critical, he says. This can be via binoculars in the paddock, but the best option is to bring a number of

animals into the yards for individual scoring, enabling an average to be calculated. A BCS chart can be found on the Deer Industry NZ website www. deernz.org “A calf that is heavier has a greater capacity to gain weight during the autumn and winter than a lighter animal,” Stevens says. “Lightweight weaners take longer to finish and to reach mating weights, so incur greater cost and generate considerably less income.”

Funding for the research came from AgResearch and DEEResearch Ltd, the organisation that channels deer farmer levy funds into research.

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RURAL NEWS // DECEMBER 16, 2014

ANIMAL HEALTH 29

Idle dog gets into mishief “Killer” Jess acts for the camera. No lambs were injured here, but unattended and unrestrained dogs, particularly young ones, will cause trouble, warns Anna Holland.

dog again, never ever! It doesn’t matter how much you beat it, electrocute it, set it up and try to teach it not to kill. It has tasted fresh blood and the thrill of the chase, and every killing instinct overrides our years of breeding and training. The dog is not to blame. Mother Nature is the culprit.

It’s possible to teach the dog not to attack when you are in eyesight, and the dog won’t kill without an opportunity.

If he works on clear flat to rolling country, he is never worked out of your sight and he is always tied up when not working, it may never occur again.

But picture a couple of scenarios... ‘The killer’s’ chain broke or the kennel door wasn’t closed properly and he is loose. In no time at all he will go off on a killing spree and he won’t stop at one, believe me.

Alternativley, at docking you are taking a mob of ewes and lambs through a gate. A lamb bolts from the mob and ‘the killer’ fails to stop it so takes off after it. Perhaps another dog joins the chase. If you leave the mob you’ll loose the lot. By the time you are able to catch up with the dog the lamb is dead and maybe others elsewhere.

If you are employed on a farm, what will your boss say about your dog killing his sheep? If they are your sheep is it ok for this to happen? And if another dog joins in the fun you will have two sheep worriers. Best not to let it happen in the first place.

• Anna Holland is teaching people dog training. For more information www. annaholland.co.nz or Ph 06) 212 4848 or annaholland@xtra.co.nz

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RECENTLY I had a phone call from a friend with a huge problem.

His eighteen-month-old Heading dog, that was working really well, had wandered off with a fourmonth-old Huntaway pup, and killed two sheep. He is not the first person that this has happened to and he won’t be the last. Why did it happen and how can you avoid this happening to you?

The two most powerful instincts are reproduction and finding food, which in the case of dogs means killing to eat. If we feed our dogs well and teach them to work stock rather than killing them, disaster should be avoided, but things can go wrong.

Young dogs have energy to burn and they get bored very quickly, so unless they are exhausted don’t expect them to hang around. A dog can go a long way in five minutes.

Tie them up if you are going to leave them unattended; it is better to be safe than sorry.

In my friend’s case both his dogs went for a wee wander. On its own the young trained dog may not have gone awry; it had been learning only to work stock when allowed; but the Huntaway pup would have chased after the sheep playfully and his Heading dog mate instinctively joined in.

No one was there to stop them.

The sheep would have split up and one would have been chased until it was bailed up. Playful nips would quickly turn sinister as millions of years of survival instinct crazed the young dog’s brains. In the wild the dogs would have fed on the carcass, and only hunted again when hungry, but well fed domestic dogs tend to not eat but go looking for another animal to chase.

It’s why you will find more than one sheep mauled when dogs get a taste of fresh warm blood. They don’t kill for survival; they torture for fun.

Once this happens you can never trust that

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RURAL NEWS // DECEMBER 16, 2014

30 MACHINERY & PRODUCTS

60 plus years and still on the Case GOODACRE FARM, Te Kauwhata, north Waikato, has had Case tractors since 1945, and they’ve had a relationship with their local dealer since 1950, says the New Zealand distributor.

Goodacre Farm is currently owned by Ian Buckley and his sister Carrol Buckley. They milk 285 cows on 100ha.

Ian and Carrol’s grandfather bought the property in 1930. Their father and uncle took over farming in 1945, and when they did they bought an American-made Case tractor. That tractor made an impression on the young Ian. “My very early memories are of that Case tractor. The Case symbol was of a bald eagle on top of a globe. I was fascinated with that and with all farm machinery.”

The two brothers split the land and farmed separately from 1950. The uncle took the Case tractor and Ian’s father bought a David Brown Cropmaster from William Gill and Son, in Huntly. That tractor is still on the farm in a shed.

The family stuck with David Brown until the 1970s when David Brown tractors became Case. They’ve had Case ever since. William Gill’s grandson, Phil, is owner of Roger Gill Agriculture, and the Case IH dealer.

Ian and Carrol now own a Case IH Puma 125 and in March bought a Maxxum 110X. Ian says Case IH machines have always measured up, so he doesn’t go hunting around.

“I stay with what I have confidence in. I’ve always had great back-up service

and an excellent working relationship with Phil, and Mark Ellett in Pukekohe.

So that’s why I chose Case IH, partly for nostalgia but also for practical reasons.

“We’ve had a continuous account with Gills since 1950. So it’s a 64-year relationship.

There can’t be too many firms with customers that have stayed for that long.”

The Puma 125 is a ‘gold’ model with a luxury cab and a 19-speed full powershift transmission.

It does the heavy work on the farm – towing 10 tonnes of metal, spreading fertiliser and cutting hay and silage for a contractor to bale.

For a chunk of the year, the 1100 litre sprayer stays on it. “It takes time to put the sprayer on, and with two tractors I can leave it on so if there’s a break in the weather I can be

Phill Gill, Roger Gill Agriculture Dealer Principal (left) and Ian Buckley, Goodacre Farm.

straight out spraying. With the GPS I can get a paddock done at night when I’ve finished in the evening.

“If I had to drop something off and attach the sprayer I probably wouldn’t have the energy.

So that’s a major reason for a second tractor – to get work done when it’s needed and not when it’s

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overdue.”

At this stage Ian and Carrol have switched off cropping and gone to an all-grass system, so there’s no cultivation. “I don’t know if I’ll continue with that, I’ll see how it goes.”

Ian says the Puma is probably overkill for what he needs, but he wouldn’t change it. “I like the Puma.

It handles everything so effortlessly, and yet it’s not big and unwieldy. When I eventually have to replace it, it will be with a newer version of the same.”

He and Carroll bought the Maxxum so they could employ someone to share the load. It’s the bronze

model and a reasonablypriced, reliable tractor with a 16 speed semi-powershift transmission.

“This is a workhorse.

The Puma is a Ferrari, but the Maxxum is everything a second tractor should be. I have no disappointments. There’s nothing more important than reliability.”

The Maxxum does a variety of jobs on Goodacre Farm. It has an excellent loader and Ian uses it to load the feeder wagon for the Puma to tow. The Maxxum also does bucket work such as cleaning out effluent traps and takes the hip lifters for any

down cows.

Ian says visibility in the Maxxum is excellent, and so is the suspension.

There’s plenty of room in the cab. He reckons it is less fuel efficient than the Puma, which has a six cylinder common rail engine and the load-sensing hydraulics.

Both vehicles have a 40km/h road speed, which suits Ian. Another feature he likes is the length and attachment of the linkage arms. It makes a difference in how long it takes to change implements and how much bad language and skinned knuckles ensue.

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RURAL NEWS // DECEMBER 16, 2014

MACHINERY & PRODUCTS 31

Holden makes tweaks in response to critics A DA M F R I C K E R

RECENT UPDATES to the Holden Colorado came in response to criticism about the ‘old’ model.

The Colorado was a good truck, but Holden received feedback that some people regarded it as too noisy and the ride too hard.

To the company’s credit, they’ve done something about it.

A cowl insulator and thicker material behind

the dashboard area have cut engine noise in the cabin by 7%, according to the company.

Better door seals and tighter panel gaps have reduced wind noise too.

The 2.8L turbodiesel continues unchanged, which is no bad thing given it develops 147kW and 500 Newton metres torque. It has always held its own in the grunt department, a key trait in the kiwi ute market.

It is still a tad unre-

fined, but thanks to the sound deadening efforts, it is less overbearing.

The top-of-the-range LTZ – the biggest seller in the Colorado range – gets reduced spring rates all around and the dampers have been re-tuned.

Holden calls it “comfort” suspension and it is certainly more compliant than it was, closing the gap between it and the Ranger/ BT-50/Amarok competition. The trade-off is a reduction in payload to 825kg.

Other tweaks include the hill descent control and hill start assists, recalibrated to enhance the Colorado’s already substantial offroad ability.

Overall the efforts to take off the rough edges

have worked and the Colorado feels more on par with the current big seller, the Ford Ranger. Already a goodlooker, and a well-priced

one at that, the added refinement should broaden the Colorado’s appeal and push it up the sales ranking.

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THE USE of an insecticide in brassica crops to keep beneficial insects in the crop worked well last season for Aaron Grant, of Taupo, says DuPont.

Grant used DuPont Exirel to kill caterpillars and aphids and to also promote beneficial insects in the crop.

“We thought to give it a go because we’d done a trial [the previous year] and it seemed to work. If it leaves the ladybirds and stuff as well, they are killing things for free.”

The Taupo property is used to fatten young stock for quick turnover. Brassica crops are planted from November and fed June-September when grass growth is low.

Grant says a range of insects appeared in the crop and were particularly active when the brassicas were stressed. “As soon as it gets dry they are here in abundance and we seem to get every insect pest you can imagine – not just one or two.”

Retaining the beneficial insects in the crop seemed to help keep the pests at bay, a better option than using chemistry that took everything out.

“That was the old way of thinking - to go in there and blast everything so you have got nothing, but now things are starting to change,” Grant says. “We can’t just keep blitzing things because otherwise we will end up with nothing.”

He says in the past with multiple sprays of alternative chemistry the aphids, in particular, had caused major issues. “We had problems with aphids. No sooner had you killed those little buggers than they would be back again.”

Last season the brassica crops had a first spray four weeks after germination then a spray of Exirel insecticide four-five weeks later, the last insecticide spray for the year.

The brassica plugged the winter feed gap and were much cheaper than buying in feed.

RURAL NEWS // DECEMBER 16, 2014

32 MACHINERY & PRODUCTS

Crop specialist depends on finest mulching MID-CANTERBURY CONTRACTOR Murray Donaldson, of Interow Spraying, is getting a “really good run” from his firm’s three Berti TSB mulchers, says the distributor, Farmgard.

“They’re easy to operate, strong and robust, and produce a good finish,” Farmgard reports Donaldson as saying.

He uses the mulchers for the crop dividing arm of his business which

removes the male plants in hybrid crops following pollination so the female seed can be harvested for export.

“We’re independent contractors who service most of the small-

seed companies between Oamaru and Kaikoura.

The mulchers do a power of work, completely breaking down the male plants in a range of crops such as carrots, canola, red beet and Swiss chard. They pro-

duce fine mulch which is then returned to the soil.”

Donaldson started his business 22 years ago doing inter-row spraying, then seven years ago going into crop dividing.

“I’d seen similar

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The Berti mulcher is built to withstand ‘severe’ punishment, claims Farmgard.

mulchers used by other companies, but decided to go with the Berti….

The [price] may be slightly more than some of the other brands on the market but value for money is way above the rest.

“We’ve never had a mechanical issue such as having to replace a gearbox or bearing. They just keep going and going.”

The Berti is built to “withstand severe punishment,” Farmgard says. Its RHS headstock and double-row self-aligning bearings on a 60mm stub shaft make it a heavyweight.

“The Berti machines have an extremely tough, robust construction which handles any conditions we throw at them.”

High rotation speed leaves a fine mulch with no build-up of windrows. It wipes out thistles, reduces

rushes and mulches crop residues, gorse, tussock and scrub in one pass.

Donaldson buys his mulchers through Claas Canterbury, with backup and parts support provided by Farmgard. “Nothing is ever a problem. We go through two sets of hammers on each machine per season and they always have them on hand when we need them.”

He replaces the mulchers every four years to maintain a modern fleet, and says their resale value is another big plus.“We look after the machines and they hold their value extremely well.

We have no trouble selling them on, mainly to farmers who want a mulcher for cleaning up their fence lines or general tidying work.”

Tel. 09 275 5555 www.farmgard.co.nz

Record tractor sales this year NEW ZEALAND tractor sales have hit their highest level in a decade.

Tractor registrations rose 8.8% to 925 in July-September, from the same quarter in 2014, according to Land Transport Safety Authority figures recently published by Statistics NZ. This reflects orders taken at National Fieldays in June, helping tractor registrations rise to their highest level since the December 2004 quarter when they reached 970.

Farmers’ spending is said to have risen this year on tractors, farm bikes, milking machines, irrigators, ploughs and harvesters. Fonterra’s record $8.40/kgMS payout to dairy farmers for 2013-14 partly explains the spending. So does the higher value of the NZ currency; the NZ$ reached a record 82.03 in July when measured against a basket of major currencies on a tradeweighted basis, reducing the price of imported farm machinery.

“Farmers were particularly cashed up through the middle of the year and around the time of Fieldays they would have been looking hard at new kit which would have included tractors,” says ASB Bank rural economist Nathan Penny.

“Many would have ordered then and those orders may not have been filled straight away; they would have come through in the months that followed, so that includes the September quarter.”

Tractor sales in the next quarter and beyond are expected to fall back as Fonterra drops its forecast payout.

RURAL NEWS // DECEMBER 16, 2014

MACHNERY & PRODUCTS 33

New GM giants now in town GENERAL MOTORS has given its Chevrolet and GMC pickups a major overhaul for 2015 and the new trucks are hitting NZ roads as we speak.

Chevy specialists Bunce Motor Company is selling the full 2015 range of GMC and Chevrolet pickups, including the 1500 series right through to the bid-daddy 3500 series complete with dual rear tyres and tow rating of about 10 tonnes.

The two trucks pictured here, the GMC Sierra Denali 2500 and the Chevrolet Silverado 2500HD, with the Duramax 6.6L turbodiesel V8 are the models Bunce Motor’s sales manager Rod Bunce expects Kiwi buyers will be most interested in – the main attraction being best-in-class towing capacity.

US website The Fast Lane Truck was not alone when it rated the GM trucks ahead of the competition on towing ability and on downhill engine braking over the truckkilling Ike Gauntlet in the Rocky Mountains, Colorado.

The factory tow rating for the 2500 with the diesel engine and bullet-proof 6-speed Allison transmission is just under 6 tonnes on a conventional tow bar and just over 7.5 tonnes for fifth-wheel towing.

That’s not the new bit though; the 2015 line-up is largely unchanged mechanically, whether you’re opting for the diesel or the petrol engines (5.3L and 6.2L V8s

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RURAL NEWS // DECEMBER 16, 2014

34 MACHINERY & PRODUCTS / RURAL TRADER

Familiar name to make a comeback FARMALL TRACTOR maker Case IH will soon launch a new range – the Farmall C, Farmall U and Farmall U Pro series of utility models.

All will be powered by the same, new 3.4L electronically controlled common rail engine made by sister firm FPT (Fiat Powertrain Technologies).

This has a wastegate turbocharger and intercooler, and cooled exhaust gas recirculation (CEGR) which lowers the temperature of the exhaust gases then blends them with fresh air and returns the mixture to the cylinder for best combustion efficiency.

It also has new diesel oxidation catalyst (DOC) and maintenancefree particulate matter catalyst (PMC) technology which automatically burns off particulates in the exhaust gases, keeping the system clean

Same but different UNLIKE THE Farmall C and Farmall U, both made in Jesi, Italy, the Farmall U Pro is designed and made at Case IH’s European headquarters in St Valentin, Austria.

The Farmall U Pro (105-115hp) has many features normally found only on much larger machines, such as a programmable automatic gear shift, electronic remote valves with an integrated joystick for front end loader work and a four speed PTO. Running economy stems from numerous ‘big tractor’ features like the 100L/min closed-centre load-sensing hydraulic system – it pumps oil only on demand. It has eco PTO speeds and reaches 40km/h at only 1750rpm.

Mechanical cab suspension, heated airsuspended seat, low noise levels and light and easy controls ease the working day, says Case IH. The new Multicontroller provides the operator with the most commonly used functions at their fingertips, including power shuttle, gear shifts, rear hitch, remote valves, two constant engine speeds and a power clutch. The new 32x32 gearbox was developed in partnership with ZF and is also built in Austria. It has a four step powershift with four shift modes; the dual throttle, the shift point can be programmed according to engine load and speed – lower for loader work and higher for heavy draft work.

There are options of factory loader ready, integrated front hitch and PTO and “municipal” hitches available to fit various needs.

Farmall tractors are being relaunched.

and running at peak efficiency.

Improved fuel economy, less noise

and vibration, greater lugging ability and a more constant power curve are characteristics of this development, says Case IH. The Farmall C (four models 85-115hp, ROPS or cab) replaces the JXU series as a mediumduty workhorse, good for livestock and allround farm work. It is manoeuvrable, has “outstanding” powerto-weight ratio, strong hydraulic performance and superb all-round vision, the maker says.

Its 24x24 gear synchromesh transmission with two speed powershift, power

clutch and electrohydraulic powershuttle (wet clutch), makes it capable of 40km/h.

Optional creeper transmission allows speeds down to 123m/hr.

The Farmall U series (105-115hp, cab only), completely new, suits slightly heavier work such as ground cultivation.

The transmission is a 16x16 semi powershift familiar to operators of the larger Case IH Maxxum XL tractors, the maker says.

This transmission is re-designed in the Farmall U. It enables the driver to select up to eight gears via up or

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• Filters your water supply

Screen Filter with Stainless Steel mesh fits inside Dam Weed Guard

Peter and Sheryl Tonkin Contact: PeterContact: and Sheryl Tonkin

09 4317276 M: 027 353 7274 • www.damweedguard.co.nz P: 09 431 7276 •P:M: 027 353 •7274 • www.damweedguard.co.nz

Up to 6 rechargeable waterproof collar units & remotes • Model SD-1825 – 1.6 Kms range (1 mile) • Model SD-1225 – 1.2 Kms range • Model SD-825 – 800 Metre range All with Tone & Vibration options 24 levels of correction – 3 year warranty

GREAT VALUE

SD-1825 with 1 collar ................$695.00 SD-1225 with 1 collar ................ $595.00 SD-825 with 1 collar ..................$495.00 Extra collars $375.00 – PRICES INCLUDE GST

www.ruralnews.co.nz

YOUR ADVERT HERE For details contact: JULIE BEECH Ph 09-307 0399 • julieb@ruralnews.co.nz

AMAZING NEW BUFFALO BOOTS!

EARLY BIRD SPECIAL!

$120

EXTRA THICK BUFFALO SKIN! RUBBER OUTSOLE, DEEP 8mm LUGS! SUPER COMFORTABLE!

valued at $280

Please add $12 Freight per order

. . .

Y E E N R R E U O H J Y W R E E V M E SO

S T R STA

110F F R C E TH

!

9 9 1 , 4 $ T S U J W! ORE NO T FOR S N I E SE

FFER! O L A I C E P S

CRF50F

With every new CRF50F, CRF110F, CRF125F, CRF125FB,

ONLY

CRF125F/B

$2,249

FROM

CRF150F

$4,999

ONLY

$5,999

and CRF150F receive a free THH Kids MX Helmet*

www.hondamotorbikes.co.nz Available while stocks last. At participating Honda dealers only. Prices include GST. Contact your local Blue Wing Honda dealer for more information. *Free helmet is only available while stocks last and only available with purchases of new CRF50F, CRF110F, CRF125F & FB, CRF150F. Colour of helmet is subject to stock availability. Offer is only available until 24th December 2014.