Rural News 23 August 2016

MANAGEMENT

MACHINERY

Environment winners reluctant to blow their own trumpet. PAGE 32

Tractor puts big to shame.

PAGE 38

RURALNEWS

NEWS SFF merger with Shanghai Maling is back on track.

PAGE 6

TO ALL FARMERS, FOR ALL FARMERS

AUGUST 23 2016: ISSUE 613

www.ruralnews.co.nz

Wool stoush ‘positive’!

PAM TIPA pamelat@ruralnews.co.nz

AN ATTACK on Wools of New Zealand by its former chief executive has turned out to be a positive, claims chairman Mark Shadbolt.

He says plenty of backing has emerged to keep going.

“We have had a strong acknowledgement of support not only from growers, but from the industry in NZ and globally,” Shadbolt told Rural News.

“They are saying ‘keep at it, you’ve got a good model, it is helping the wool industry’. The outcome of the publicity

has been very positive towards us and we are encouraged by that support.”

The criticism has come from former Wools of NZ chief executive Ross Townshend who left the company in March last year.

Shadbolt says he doesn’t know what’s behind Townshend’s criticism and doesn’t want to waste any time thinking about it.

“The more time we waste on negative actions such as this, the less time we spend on ensuring the company is in a strong and robust position… it probably makes us more determined than ever to succeed.”

Townshend admitted to the Rural News there had been a falling out between the two, but said that was “irrelevant”.

“These guys in my view can’t survive the end of Wool Market Development Commitment (WMDC). In the middle of 2018 when WMDC stops there won’t be enough cashflow in the business to keep it going – simple as that.”

Townshend points to the projected maiden profit of $600,000 this year – and the loss of $3 million in WMDC funding in two years. He supports Wools of NZ as a concept, but believes it should merge with NZ Merino.

“I have a view about how Wools of NZ will fare after June 2018 and Shadbolt has a different view; only one of us can be right.”

Shadbolt says they have known from the start that June 2018 is a target time, given the WMDC will cease then.

“We are confident we will be in a strong position come June 2018 through increased commercial activity in and around our direct to scour…. We have just launched a tender platform which is off to a good start. It will be based on that and our lambswool contracts we have had in place for several years.”

WINTER WORKOUT Heavy snowfall virtually paralysed farming operations around the settlement of Rangitaiki, SH5 near Taupo, earlier this month.

Landcorp’s Rangitaiki Station was one of many farms affected in the area. Manager Sam Bunny went up in a helicopter to assess the situation, as soon as snow stopped falling, and decided to mount an operation to get the sheep on the high ground down to the flats. Staff were taken to the high ground by helicopter and made tracks so the sheep could be walked down to the flats where they could more easily be given silage and other supplements. While the snow has just about melted away, many of the problems it caused remain.

– See full story page 5

TO PAGE 3

CAUTIOUS OPTIMISM SUDESH KISSUN sudeshk@ruralnews.co.nz

THE LIFT in dairy prices is being met with cautious optimism by farmers.

In October last year, global whole milk powder prices rose to US$2824/ metric tonne; Federated Farmers dairy chairman Andrew Hoggard then told reporters the industry had turned a corner.

Three consecutive auctions later WMP prices had slumped to US$2148/MT. Last week’s Global Dairy Trade auction saw WMP prices rise a whopping 18.9% to US$2695/MT; WMP prices have risen almost 30% in the last month.

So this time Hoggard is exercising caution.

“We are again hearing from some commentators that the prices have turned the corner but we are not getting carried away this time,” he told Rural News.

Hoggard says the results give more certainty to the $4.25/kgMS price forecast by Fonterra for the season. Farmers hope they will end up with more.

“I hope it’s not a repeat of last year when prices rose and then crashed.”

He points out that prices for Fonterra’s flagship WMP remain well below the US$3000/MT required for a $5/kgMS payout.

TO PAGE 3

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RURAL NEWS // AUGUST 23, 2016

NEWS 3 ISSUE 613 Light at end of tunnel,

www.ruralnews.co.nz

or dead cow bounce?

FROM PAGE 1

NEWS ������������������������������������ 1-19 MARKETS ������������������������� 21-23 AGRIBUSINESS �������������� 24-25 HOUND, EDNA ����������������������� 26 CONTACTS ������������������������������ 26 OPINION ���������������������������� 26-29 MANAGEMENT �������������� 30-33 ANIMAL HEALTH ���������� 34-37 MACHINERY AND PRODUCTS ���������������������� 38-42 RURAL TRADER ������������������� 43

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 81,004 as at 30.06.2015

“We are asking farmers to play it safe; keep production costs as low as they can.”

Westpac analyst Anne Boniface agrees with Hoggard.

The headline GDT average price index was up an impressive 12.7%; WMP turned up even more strongly than was signalled by futures markets.

Boniface notes that prices for other products on offer also rose, albeit more modestly. Skim milk powder was up 3% to US$2028; AMF was up 8.4% to US$4148.

But while this good news will bring a smile to the dial of many beleaguered dairy farmers, Boniface sounds a note of caution.

“While the fundamentals of supply and, more recently, demand appear to be moving in a more favourable direction, we’re still wary that we might see a partial retracement of the recent lift in prices.”

“A year ago we saw solid price gains through August/September which partially retracted later in

ASB’s Nathan Penny is sticking to his $6/kgMS forecast.

the season.”

However, Boniface says fundamentals appear at last to be shifting in favour of dairy producers; Westpac has raised its 2016-17 forecast price to $5/ kgMS. ASB rural economist Nathan Penny is more optimistic, sticking to the bank’s forecast of

$6/kgMS. “The lift during the two August auctions is the first verification of our view that rapidly tightening global supply will lift prices during 2016.

“We expect further price lifts during the rest of 2016, contingent on supply weakness continuing.”

Penny expects prices to consolidate in the next month or so, before lifting further again to the end of 2016.

“On that front, we continue to look to data that support or challenge our view that rapidly tightening global production will translate into additional price increases.

“For example, we estimate the NZ dairy herd has shrunk an unprecedented 5% (300,000 cows) on top of the 3% fall last season. This heavy slaughtering is irreversible and will translate into lower production; the only question is by how much? As a result, NZ production data through the spring will be telling.”

BREXIT IMPACT NEW ZEALAND businesses exporting goods or services to the UK are being asked to tell the government about likely impacts on their companies of Britain’s vote to leave the European Union.

This comes amid widespread uncertainty and speculation about the impacts on NZ’s trading relationship with the UK and a possible free trade agreement with the EU. Informal talks between Prime Minister John Key and UK and EU leaders have already taken place. But there are suggestions the process of Britain’s exiting the EU will take longer than some European leaders would like.

Trade Minister Todd McClay says although the Brexit process will take years the NZ government is paying close attention to it “to ensure the interests of NZers are maintained and advanced”.

He says the first step in this is to accurately understand NZ’s commercial interests in the UK by having exporters and investors communicate with MFAT, which is inviting submissions via a special section on its website.

MFAT wants to know the sectors businesses operate in, their level of investment in the UK, the EU countries they export to, whether they have any idea of the financial impact of Brexit -- including growth prospects -- and particular matters of concern.

McClay says the submissions received will “enable the government to more effectively work with businesses to safeguard NZ’s interests as the Brexit process unfolds.”

Submissions close on Friday October 14.

– Peter Burke

WOOL STOUSH ‘POSITIVE’!

FROM PAGE 1

Other commercial activity will be linked to technology such as Oritain traceability, GlacialXT and Kiteq which had attracted government investment to get products to market faster.

“These provide us with a huge opportunity which differentiates our wool. All that together will put us in a strong commercial position.

“The level of support we are getting from growers means we are getting a higher take of WMDC than we envisaged. That is good for our current revenues but the focus is on growing the business commercially.

“Growers want to see a sustainable wool industry alongside the meat industry, otherwise we are not going to have a sheep industry left.”

Townshend says he “couldn’t possibly comment” on whether he knew if NZ Merino wants to by Wools of NZ. “But logically it would make sense for both companies. Wools of NZ would then have international sales and marketing capability beyond what it currently has.”

Shadbolt says the fact that Wools of NZ 100% is grower-owned is highly

significant.

“In the international marketplace our customers want to link as closely as they can to the grower to ensure they have a sustainable supply of wool.

“The more of the international customers we bring to NZ and get onto our farms, the more opportunities are created. “That’s a positive outlook for our growers.”

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4 NEWS

No chance of PKE ‘ban’ - Feds SUDESH KISSUN sudeshk@ruralnews.co.nz

PALM KERNEL expeller (PKE) is not a food safety but a manufacturing issue for Fonterra, says Federated Farmers dairy chairman Andrew Hoggard.

He doesn’t believe Fonterra will force restrictions on farmers’ use of PKE. Hoggard told Rural News he believes the co-op does not want PKE feed levels to start affecting fats and proteins processing at plants. It is expected to announce

“The new standard requires us to purchase only segregated supply palm oil by 2018, and to work with suppliers of palm products to ensure plans are in place for full traceability to plantations by 2018.”

soon the results of research into how high levels of PKE in milk affect its plants.

The co-op last week announced a new standard for sourcing of palm products.

“The new standard requires us to purchase only segregated supply palm oil by 2018, and to work with suppliers of palm products to ensure plans are in place for full traceability to plantations by 2018,” says Fonterra’s director of social responsibility Carolyn Mortland.

Hoggard points out

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this has been Fonterra’s policy for four years and he doesn’t believe Fonterra will restrict farmers’ use of PKE. Last year the co-op asked its suppliers to voluntarily keep PKE usage below 3kg/cow/day.

Says Hoggard, “At this stage the feeling I get from Fonterra is that it wants to ensure PKE feeding levels don’t affect manufacturing; it’s a processing issue not a food quality issue.”

He says if consumers are demanding more grass-fed milk products then it’s a case of “money talks”. “ If consumers are willing to pay farmers more for grass-fed milk only, then farmers will oblige.”

On his Manawatu farm Hoggard uses about 1kg/ cow/day as part of his shed feeding; during spring his PKE use rises to about 3kg/cow/day.

Fonterra says it has guidelines on the maximum use of PKE per cow per day.

“We know our pasturebased production gives us a competitive advantage in global markets and we need to protect that,” says Farm Source chief operating officer Miles Hurrell.

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Fonterra will work now in the wider dairy industry on sustainable palm products sourcing in line with the new standard.

“We’ll continue to work together as an industry... to address environmental issues facing the dairy industry,” says Mortland.

The standard applies to the palm oil and palm kernel expeller (PKE) some farmers feed to their animals.

“We take our sourcing responsibilities for both products seriously, and we’re grateful to Greenpeace [for its support in developing] the standard,” she says.

Since 2009 Fonterra has belonged to the Round Table for Sustainable Palm Oil (RSPO) and it now offsets 100% of palm oil use via RSPO and Green Palm certification.

PKE is a by-product of the palm oil industry and Fonterra uses a single source provider, Wilmar International, which has a “no-deforestation, noexploitation” policy.

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NEWS 5

The snow may have gone but the aftermath continues PETER BURKE peterb@ruralnews.co.nz

THE HEAVY snowfall that virtually paralysed farming around the settlement of Rangitaiki, on SH5 near Taupo, has almost melted away, but many of the problems it caused remain.

Landcorp’s Rangitaiki Station is one of many properties affected by the blizzard and as the snow has thawed staff have been busy repairing the damage to sheds and fences, says senior business manager Ross Shepherd.

“We’ve had a few garages collapse under the weight of snow and a set of covered yards. We have four fencing crews in there getting trees off fences and tidying that up,” he told Rural News. “Others are on site assessing the buildings that were damaged. There was also a fair bit of spouting damaged.”

Lack of electricity has been a major problem, the power company Unison doing its best to replace power lines, poles and transformers wrecked by the snow.

Rangitaiki is still relying on generators and it could be weeks before it is reconnected to the national grid.

But despite this things are sort-of getting back to normal, though the memories of the storm and what happened in those early days are still vivid.

Shepherd says the storm, which locals say is the worst in 30 years, took people by surprise.

SH5 was closed, farms had no power and access to individual houses was cut.

The immediate priority for the manager of the station, Sam Bunny, was to look after staff, and animals came a close second, says Shepherd.

“Sam Bunny and his wife Christine opened their house to all the staff and set up a communal kitchen and people stayed there to get a rest. This was because access to the other houses was difficult and the power was off and in some cases also the water.

“They looked after the staff and made sure they had hot meals and in some cases put staff up for several nights until they could use their own houses. Some things you don’t think about when you are trapped in there -- diabetics and people affected in ways like that, and what backup provisions are necessary.”

Rangitaiki is a mixed sheep and beef, deer and dairy support farm on 8400ha on the Napier Taupo Road. The station lambs 22,000 ewes and of these about 2000 were caught on the higher part of the farm when the snow fell.

Manager Sam Bunny went up in a helicopter to assess the situation as soon as snow stopped

so we quickly got the pregnant ewes onto a crop of kale, which has high moisture content.”

He says it was a challenge getting generators hooked up to pumps to get water to stock. Part of the problem was access to pumps, which were snowed in.

About 20 staff work on Rangitaiki and they were assisted by Landcorp staff from other farms in the area. They were mobilised to help out at the station and to assist other farmers near the

falling and decided to mount an operation to get the sheep on the high ground down to the flats.

“Staff were taken to the high ground by helicopter and they made tracks so the sheep could be walked down to the flats where we could more easily give them silage and other supplements and we could monitor them a bit more closely,” Shepherd says. “We are lucky we don’t lamb for about another six weeks.

There was also a problem getting water to stock

station, some in the middle of calving.

“It’s been cool to see the community come together at Rangitaiki.

We were lucky in having a lot of people on hand and because we were not calving and lambing,” Shepherd adds.

“Even when the chips were down at his own farm, Sam was pretty quick to help the neighbours and share tractors and generally help the community. I take my hat off to the guys because they made a massive effort.”

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RURAL NEWS // AUGUST 23, 2016

6 NEWS

One year and $1 million later!

DAVID ANDERSON davida@ruralnews.co.nz

SILVER FERN Farms’ proposed merger with the Chinese company Shanghai Maling is back on track.

However, it has taken nearly a year and upwards of $1 million of shareholder funds to have the company in exactly the same place as it was in October 2015.

Last October, 82% of SFF shareholders supported the proposed move to set up a 50/50 joint venture with Shanghai Maling. However, a group of minority shareholders led by former British merchant banker turned Canterbury runholder John Shrimpton demanded the deal be rejected.

Shrimpton, who opposed the proposed deal from the outset,

teamed up with other dissident shareholders, egged on by political and other stirrers, and they spent the best part of a year trying to derail the deal. This month’s re-vote at a special meeting requested by Shrimpton and supporters saw the proposed SFF/ Shanghai merger again get the tick of approval from SFF shareholders – this time by 80%.

Shrimpton says he now accepts that Silver Fern Farms shareholders have “spoken”.

“We’ve highlighted some very, very serious issues. People have exercised their rights to vote and, as the Chinese would say, be careful what you wish for,” Shrimpton quipped to media at the meeting’s conclusion.

Asked about the cost to SFF shareholders of the special meeting process,

Shrimpton claimed those supporting the requisition “cared very deeply” about the company.

However, not many SFF shareholders would agree. Waikouaiti Jim Lawson farmer told the meeting he believed the special meeting process had been a “total waste of time and money” for the company.

“All this has been discussed and decided a year ago. It’s been regurgitated,” Lawson said.

Defending his and other requisitioners’ stance to challenge the merger and call for the re-vote, Shrimpton said he was not disappointed, but very honoured to have been part of a “fantastic” team effort.

However, questions have dogged the requisitioners all along about just exactly who were mem-

WINNERS & LOSERS WINNERS: ■■ Rob Hewett (pictured) ■■ Dean Hamilton ■■ Shanghai Maling ■■ 80% of SFF shareholders LOSERS: ■■ John Shrimpton ■■ Blair Gallagher ■■ Winston Peters ■■ 20% of SFF shareholders ■■ All SFF shareholders because of the estimated $1 million spent on the special meeting process.

bers of the ‘team’, after it was revealed in Rural News in May 2016 that a grouping of political, industry and business interests were seeking to overturn Silver Fern Farms’ (SFF) partnership with Chinese investor Shanghai Maling.

The revelations showed a remarkable simularity of opposition to the deal between mem-

bers of the group, which included Shrimpton – an ex-pat Brit and co-founder of the Vietnam investment fund Dragon Capital Ltd, former and current leaders of the ginger group Meat Industry Excellence and NZ First party leader Winston Peters.

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“It is a cost we would rather not have had,” Hewett told a media conference at the meeting’s conclusion. “Not only in terms of the money but also time, effort and distraction.”

Hewett told Rural News that though the minority shareholders’ tactics were frustrating it was “the price of democracy”. He has called on Shrimpton and fellow detractors to now back the SFF/Shanghai Maling deal as “the vast majority of shareholders have now done twice”.

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NEWS 7

SFF/Shanghai Maling deal gets big shareholder tick – again!

DAVID ANDERSON davida@ruralnews.co.nz

SILVER FERN Farms farmer shareholders have overwhelmingly supported the company’s proposed joint venture with Shanghai Maling for the second time in less than 12 months.

Around 150 people attended a special meeting in Dunedin on August 12, following a request from a group of minority shareholders to revisit the deal.

An overwhelming majority of 80.4% of votes cast favoured the merger, following the similarly strong mandate of the October 2015 vote, in which 82% of votes cast supported the transaction.

SFF’s board said it had intended to complete the transaction irrespective of the outcome of the non-binding resolution. However, following the vote announcement chairman Rob Hewett told Rural News that while he had been frustrated by the process he was grateful and humbled and the company was

now on track to complete the deal.

“It has been distracting to the company and it’s good to finally put it to bed,” he said. “We can now get on with the task at hand which is consummating this transaction and running this business in the meantime.”

Meanwhile, chief executive Dean Hamilton says all conditions for the proposed merger have now been achieved except for Overseas Investment Office (OIO) approval, which the company expected to achieve.

Speaking at a media conference after the vote, Hamilton said the OIO had confirmed it now had all the information it required and it was in the process of making recommendations to ministers. He is comfortable the OIO process will be completed by September 30 and the deal could be completed by January 4 next year.

Hewett says the board, which unanimously backed the deal, “strongly disagreed” with Shrimpton and Galla-

SFF chief executive Dean Hamilton is confident the deal will meet OIO approval.

gher’s opposition to the deal.

“They have caused significant disruption and their actions have been damaging to the company,” he added.

“Their allegations have proven entirely unfounded.”

Hewett said reviews by both the Financial Markets Authority and the Registrar of Companies had found no

problem with the information provided to shareholders in October last year or the actions of the directors.

“I’m not sure how many more hoops we’ve have to jump through.”

Hewett said the SFF board remained unanimously of the opinion the transaction was in the best interests of the company and shareholders and that

no more than 50% of the company had been sold.

In respect of the awaited OIO approval, Hewett told Rural News this process was done in a ‘black box’, which meant the company would have no correspondence with the OIO during the approval process.

However, he believes the deal is not only good for SFF shareholders but also good for NZ “The 7000 jobs at SFF are more often than not in rural areas where there were not many employment alternatives,” Hewett added. “These jobs are staying in NZ, as are the factories, livestock and farmers. Shanghai Maling is investing in NZ.” He added that the meat would be cut in NZ to add value and create, with Shanghai Maling, the premier red meat brand in China.

Hewett says Shanghai Maling is still committed to the deal, as is SFF. @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 23, 2016

8 NEWS

Industry leader picks up top award MURRAY MCPHAIL, founder and owner of LeaderBrand Produce, won horticulture’s top award, the Bledisloe Cup, at Horticulture NZ’s annual conference in Nelson earlier this month.

The Horticulture NZ Industry Service Award went to Dr Christopher Hale, a plant pathologist with expertise in bacterial diseases.

Life Membership of Horticulture NZ (HortNZ) was awarded to former president Andrew Fenton, and Registered Seasonal Employment scheme pioneer Geoff

Lewis.

HortNZ’s president Julian Raine says the Bledisloe Cup this year was honouring a 40-year commitment to the industry.

McPhail was passionate about growing and machinery. His experience as a young man working in the US for agricultural contractors opened his eyes to the potential of industrialised agriculture.

“Large-scale farming operations using specialist equipment and machinery played to Murray’s greatest passions and sowed the seeds for

what would become later the LeaderBrand,” Raine says.

From small beginnings in 1975 he has grown LeaderBrand into a leading NZ horticulture businesses.

“Now farming over 3000ha with operations in Gisborne, Pukekohe and Rakaia, employing 200 permanent staff and a further 300 seasonal staff during the growing season, his pioneering spirit has seen him at the forefront of new product and process development in the NZ produce industry.”

He was a foundation member of the Buttercup Squash Council and held leadership positions, also encouraging LeaderBrand staff to give back to the industry.

The work of industry service award recipient Dr Hail in the wider horticulture sector of NZ is extremely significant for a horticulture export nation, Raine says. He is also important internationally and his work has been recognised by his peers in the global scientific community.

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Richard McPhail accepts the Bledisloe Cup on behalf of his father Murray McPhail, with HortNZ president Julian Raine and Minister for Primary Industries Nathan Guy.

summerfruit industry can only be described as outstanding.

“A scientist with a national and international reputation in bacteriology, he has a rare talent for bridging the gap between science and industry. Often the difficulty we have in the science community is they do some really good stuff but the growers don’t quite understand it.

“Dr Hail has made a significant difference in this. Extending the science for the industry has achieved a level of admiration and trust in the summerfruit community which has helped it become unified and resilient.”

Dr Hale contributed much to recommendations for managing bac-

terial disease Psa in the kiwifruit industry.

In the life membership awards, Raines says Fenton has had a long and illustrious career. He has been the director of a huge range of organisations, chairing HortNZ for eight years and was also with the Fruit Federation.

“In these roles he has been a balanced and considered thinker, a problem solver and a strategic thinker. He is a strategic and respected leader. He operates under the principles of honesty, integrity, transparency and significant service.”

Lewis was the chair of the Asparagus Council twice and the national labour governance group.

“As an employer he was an early adopter of an approved-in-princi-

ple scheme which became the very successful RSE scheme we have today,” Raines says.

“He has passionately believed in what the scheme could achieve for horticulture and for the Pacific Islands and their people, while simultaneously supporting NZers into season work and permanent jobs.

“He championed the need to provide good pastoral care to RSE workers and became the independent chair of the national labour governance group in 2009, holding the role until 2015.

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FARMERS ARE getting a spring break as Ravensdown and Ballance drop the price of urea.

Ravensdown led the move, offering to cut $15 a tonne off the current urea price of $475 -- to $460 per tonne. This applies to all urea ordered and picked up from midnight August 15 to September 30.

Ballance spokeswoman Michelle Riley confirms it will match the cut, from $475 to $460 per tonne.

The international price for the commodity is “pretty flat at the moment,” she says.

Ravensdown chief executive Greg Campbell says the cut “benefits the savvy, pasture-focused dairy farmers who are looking at their cost of dry matter production, and also cropping and sheep and beef farmers who are planning for a big spring”.

Ravensdown has also cut its Sulphur Super 30 by $20 to $370 per tonne.

“This is not for farmers to put on more nitrogen than they need, but to get the benefits of growthboosting, early spring nitrogen at historically low prices,” Campbell says.

“Urea is already the lowest it’s been for over a decade, but we’ll keep passing on the value where and when it’s viable.”

RURAL NEWS // AUGUST 23, 2016

NEWS 9

Irish Ag model mooted PETER BURKE peterb@ruralnews.co.nz

NEW ZEALAND banks may have to play a social role with farmers, as do European governments, claims Professor Alan Renwick of Lincoln University.

Renwick says in NZ, with its free market approach, there is an expectation that banks, not governments, will see farmers through troubled times.

He says the EU’s Common Agricultural Policy (CAP), though much criticised for supposedly keeping farmers on the land when they should not be, in fact has other good points which help manage some of the volatility in the market.

“The CAP is not all that bad. It allows a more coordinated way of addressing the bigger challenges such as greenhouse gas emissions and environmental pressure, and it offers measures that allow some softening of these

extremes,” Renwick told Rural News. “It also allows agriculture a bit more certainty about its future. A fundamental reason why you have agricultural policy is because of instability and the economic problems it causes, so

dialogue between farmers, advisors and researchers; all these are under one umbrella government organisation – Teagasc.

“The Irish model works well in the dairy sector where they coordinate their research

and transmit it to farmers. It allows them to get the message across in a consistent way and there isn’t too much noise in there distracting farmers. Farmers in Ireland feel connected to the research and there is a sense of ownership

because Teagasc is a government body.”

Renwick also applauds how the Irish work well together and have good strategies to drive the ,agribusiness sector -- Origen Green and Foodwise 2025, which have buy-in from

the whole sector.

“They accept there is a role for government in facilitating that, whereas here in NZ with the free market philosophy there is perhaps a lack of strategic leadership in getting people to work together,” he says.

“Ireland has a coordinated approach.

They have Enterprise Ireland supporting their businesses to come to events such as our National Fieldays among many other initiatives and I think it reflects in trade flows.”

Lincoln University’s Prof Alan Renwick.

governments should have some policies to deal with it. It’s not [unconditional] support for farmers, but they need mechanisms to help them through periods of instability.”

Renwick has worked in the UK and Ireland and says NZ can learn from the Irish, notably their better communication and

“He’s not the money provider guy. He’s the benchmark guy and the ‘what do you think of this’ guy.”

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PRIMARY PRODUCERS are set to play a part in helping New Zealand meet its commitment to reducing its carbon footprint.

Representatives of the agriculture and horticulture sectors are to collaborate with the government on how to reduce greenhouse gas emissions. This follows Climate Change Minister Paula Bennett’s confirmation last week that the government will finalise ratification before the UN’s Framework Convention on Climate Change conference in November.

NZ has pledged to reduce its greenhouse gas emissions to 30% below 2005 levels by 2030.

The farming and forestry sectors will try to agree on how to meet NZ’s goal; two new reference groups will be set up (biological emissions reference group and the forestry reference group) aimed at reducing emissions from these sectors.

“NZ is a world leader in efficiently producing food and has researched reducing the effects on climate change,” says Primary Industries Minister Nathan Guy. “But it is a complicated challenge and right now there is no easy fix. The group aims to seek consensus on what can be done to reduce emissions and meet the challenging 2030 target, to ensure we have the right science and that costs to the sector are minimised.”

To find your local Agribusiness Manager, visit westpac.co.nz/agri

RURAL NEWS // AUGUST 23, 2016

10 NEWS

Whanganui farmers getting back to normal PETER BURKE peterb@ruralnews.co.nz

A YEAR on and the farms around Whanganui are slowly getting back to normal, says local Federated Farmers president Harry Matthews.

In June 2015 the region was hit by a huge weather ‘bomb’ – 300mm of rain in four days, causing huge slips on farms, with damage to tracks, fences and other infrastructure.

Paddocks on many farms on the river flats were covered in fine silt.

But 12 months later

Matthews says while the scaring on the hills remains, the lowland areas have recovered well.

“What was a mass of silt a year ago looks ok now,” he told Rural News.

“Farmers have sown grass on it and either built new fences or raised the older ones because in some cases the land was raised by up to a metre by the silt.”

Farmers who lost land to the slips have adjusted their stocking rates and carried on.

Some farms have changed hands but no-one

Harry Matthews

has walked off the land; those who have stayed have bided their time and got on with the job.

Matthews was at the forefront of the recovery operation in 2015 and worked full-time as a coordinator until December

last year. He did a little work into the new year but says the operation was essentially over by Christmas.

He says the Government paid $1.28 million in assistance in the three regions hit by the floods and while this helped some individual farmers, he wonders whether the money would have been better spent on fixing roads.

Prompted by the 2015 floods Horizons Regional Council has set up a permanent committee including Federated

Farmers, DairyNZ, Fonterra, MPI, Civil Defence and the Rural Support Trust.

Matthews says he supports this because when the next adverse event strikes, the committee members will know each other’s roles and that will streamline recovery.

The 2015 recovery operation was better than in 2004 because of the lessons learned from that event.

“In 2004 they had up to 500 Task Force Green people running around doing work, but no one was really controlling them. There were days when the van would turn up in Wellington, or it would drive up a country road, and people would do nothing for the day.”

GOVT CASH HELPS PRIMARY INDUSTRIES Minister Nathan Guy recently visited Whanganui to see for himself how the recovery operation had gone.

This coincided with an MPI report which says the Government funding helped achieve good results in getting things back to normal in Whanganui and Taranaki.

“The report shows the funding has helped the worst-hit farms with onfarm infrastructure repair, including access and fencing, and removal of silt and debris,” Guy says. “This has helped get basic farm systems restored and in turn support other businesses providing rural services. Many farmers have now shown more interest in projects that would reduce sediment loss to rivers and have wider community benefits, like erosion control and riparian planting.”

Guy says MPI, Horizons and Taranaki regional councils, and the local Rural Support Trusts, worked together to quickly get farmers back into business.

The report notes the work of Task Force Green in helping with the clean-up and says farmers appreciated the Government help.

It says while the land is essentially back to normal, farm fences are still being repaired. And it notes that farmers were willing to take advice on how to change their farming systems to cope with such events.

The June 2015 storm experience will provide useful input for a review of primary sector recovery policy, particularly assistance in medium-scale events, the report says.

RURAL NEWS // AUGUST 23, 2016

NEWS 11

Changes proposed for red meat organisation BEEF + Lamb NZ (BLNZ) is setting out to meet farmers to discuss its proposals for market development and reviewing its constitution.

Regarding market development, chairman James Parson says BLNZ has done a “thorough review” and is proposing a new approach.

“Essentially we propose shifting our activity away from market maintenance in traditional markets to true market development. We’ve worked with farmer and meat exporter focus groups, coupled with numerous expert interviews over the last 12 months to develop this plan,” he says.

Parson says there four key components to the plan: ■■ Market intelligence better knowing customers and new market opportunities.

■■ Our story - developing our unique NZ story.

■■ New markets - developing new markets and market segments, underpinned by good market intelligence and NZ’s unique red meat sector story, and partnering with exporters individually and collectively, market by market.

■■ Crisis and issues management - equipped and ready to roll should the sector suffer a food safety scare, biosecurity issue, or anything else undermining our position in our domestic and international markets.

“We have a full developed proposal that has the buy-in of meat companies and we’re looking for farmer feedback on the proposed new direction,” Parson adds.

Meanwhile, BLNZ is also reviewing its constitution, in particular its governance structure.

“The constitution requires technical amendments such as removing references to goats where there is no longer a levy stream,” Parson explains.

“However, on the governance side we are asking farmers whether they wish to retain the two processor nominated directors on the BLNZ board.”

The three governance options are: ■■ Retain the current governance structure with six farmer elected directors, two Meat Industry Association (MIA) nominated directors (the farmer directors are not required to accept these nominations), and provision for one independent director.

■■ Removing the option for the MIA to nominate two directors to the board and instead appointing two independent directors with provision for a third independent director.

■■ Remove the option for the MIA to nominate two directors to the board and instead appoint one independent director.

“It’s the unanimous view of the farmer-elected directors that the current

CHINESE GOOSEBERRIES

ZESPRI RESUMED shipping kiwifruit to China, last week, after a temporary ban was imposed due to a fungus found in a routine inspection.

Zespri says it has revised its pre-export checking processes, which has been approved by the Ministry for Primary Industries (MPI) and the Chinese authorities.

The kiwifruit marketer says suppliers are rechecking fruit destined for China under the new processes imposed.

Sales of kiwifruit that have been cleared into China continue as normal. Zespri says supply is on track to exceed last year’s volume – with another 7 million trays forecast to be exported there this season. The fungus causes fruit to rot in long-term storage but has no food safety implications. It had only affected about 2% of the fruit that had arrived in China to date.

structure works well,” Parsons says.

“The industry-nominated directors provide significant value in governing your farmer organisation, with perspectives and insights from beyond the farmgate. However

this is a farmer organisation and if the board are out of step with farmers’ views then we are happy to adopt a new structure.”

More details on both proposals can be found on the Beef+Lamb NZ website: www.beeflambnz.com .

Beef+Lamb NZ is proposing changes to its constitution and market development role.

RURAL NEWS // AUGUST 23, 2016

12 NEWS

Sheep flock down; beef herd up PETER BURKE peterb@ruralnews.co.nz

“A CONFLUENCE of circumstances” is how Beef + Lamb NZ’s Rob Davison describes its latest report, which shows further decline in sheep numbers and an increase in beef cattle.

Davison, director of BLNZ’s economic service, says a year ago he would have predicted sheep numbers remaining steady.

He cites the weather and lamb prices – which were below expectations – as the main reasons for the drop in sheep numbers. This in turn has led to farmers moving into beef where prices are better.

Davison believes forecasts late in 2015 of an impending El Nino weather pattern helped cause the drop in sheep numbers.

“As a result we had early slaughter, and the drought in Canterbury and Marlborough, which was pretty severe, affected sheep numbers,” he told Rural News.

“It was also quite dry up the east coast of the North Island. And facial eczema affected flocks in the North

Island, causing some stock to be taken off for slaughter.”

He describes the change as more a series of circumstances than a trend.

Adding to the confusion now is the outcome of Brexit, he says.

He notes that about 20% of NZ lamb, by volume, goes to the UK and the weakness of the British pound against the strength of the NZ dollar could affect the long term.

BLNZ chairman James Parsons says it would be concerning if the trends of the past year were to continue, especially the drought.

“There is no doubt drought has affected carrying capacity, particularly on... the east coasts of the North and South Islands that have been badly affected by drought.

“You shouldn’t underestimate the effect of the storms in the Whanganui/ Taranaki area last winter and I am not sure if those farmers are back to their full carrying capacity.

“Then facial eczema has knocked a few people around and on top of that we have seen a rise in confidence in beef,” he says.

Parson believes the decline in sheep

numbers this time has not been influenced by the dairy sector’s hard times and large cow culls.

While sheep numbers are dropping, the carcase weight of lambs is increasing, so the volume and value of lamb exports will not be greatly affected. But it poses problems for meat processing plants that rely on volume not weight as their main profit criteria.

Parsons thinks it may be possible to increase carcase weights slightly.

“It’s been a tough season for sheep farmers Beef+Lamb NZ chair this year, but James Parsons. despite this ewe conception rates still seem to be reasonably solid around the country. But of course we will have to see how lambing goes.”

Parsons says farmers are getting much better at managing through droughts.

WHAT THE REPORT SAYS...

BREEDING EWE numbers are down by 3.1% to 18.48 million, hoggets by 3% to 8.93m, and total sheep numbers have declined by 3% to 28.25m.

And the lamb crop this season is predicted down by 2.9%. This progressive decline since the mid 1990s is due to land use change and more profitable alternatives available to farmers.

Regional differences show up: in the North Island a bigger decline occurred (4%) than in the South Island (2%). The fall in sheep numbers was greater on the east coast of the North Island (5.1%) and in Taranaki Manawatu (4.1%).

Total sheep numbers in the North Island are now 13.94m.

Sheep numbers in the South Island are 14.31m, the biggest

decline occurring in drought-hit Canterbury and Marlborough.

The nation’s total breeding ewe flock is now just 18.48m, almost evenly spread across both islands.

Breeding ewe numbers decreased slightly less in the North than in the South Island.

The good news in the report is beef. Beef cattle numbers are up 5.5% to 1.08m in the South Island and by 1.7% to 2.57m in the North Island. Canterbury, Marlborough and to a lesser extent Otago had a surge in beef cattle numbers. In the North Island, Northland, Waikato and Bay of Plenty were the big movers.

The report says the outlook for this season will be influenced by weather; calving percentages are expected steady or up on last season, except for Marlborough and Canterbury.

The lift in cattle numbers is underpinned by strong returns for beef.

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RURAL NEWS // AUGUST 23, 2016

NEWS 13

Political blowtorch on Aussie dairy cos SUDESH KISSUN sudeshk@ruralnews.co.nz

STRUGGLING AUSTRALIAN dairy processors are facing political pressure to ensure farmers are not short-paid for their milk.

Last week Australian Prime Minister Malcolm Turnbull and deputy PM and Agriculture Minister Barnaby Joyce met with Murray Goulburn’s board; they meet Fonterra Australia management this week.

Joyce says the government “strongly supports Australia’s hardworking dairy farmers”.

He says the meeting with MG last week was the first of a series of formal talks about what is required to build a more profitable dairy industry in Australia.

“The government’s interests are in supporting Murray Goulburn suppliers. There can only be strong and profitable dairy processors if we have strong and profitable dairy farmers.

“Australia’s dairy farmers deserve fair returns at the farmgate, as well as transparency in milk price arrangements and supply contracts,” says Joyce.

During the Australian federal election campaign two months ago Turnbull promised to meet struggling dairy farmers.

Australia’s dairy industry was thrown into turmoil when dairy giants

Murray Goulburn and Fonterra slashed the price of milk solids from A$5.60/kgMS to $4.75-$5, leaving local milk farmers to be paid less than production costs.

Struggling farmers also gain nothing from the sale of home brand milk at A$1/L at big supermarkets including Coles and Woolworths.

MG, Australia’s largest dairy co-op, is facing a backlash from farmer suppliers; its chief executive, chief financial officers and several directors resigned.

Joyce says it is important for Murray Goulburn to explain to their suppliers what they will do to support farmers and restore confidence to the dairy sector.

Despite the low milk price and global oversupply of milk, the long term future of the dairy industry looks strong. Global consumption of dairy products is expected to increase by 2.2% year-onyear through to 2024 – by 25% over ten years.

Joyce says growth is forecast largest in developing countries and Australia is well positioned geographically to supply these markets.

“The government will continue to work with Australia’s dairy farmers and processors to strengthen the industry, and is already providing assistance to dairy farmers,” he says.

Farmers have access to dairy recovery concessional loans, farm household allowance, the Rural Financial Counselling Service and an extra A$900,000 for Dairy Australia to roll out ‘Tactics

Australian PM Malcolm Turnbull (left) and his deputy Barnaby Joyce are turning their attention to dairy processors.

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WALLER TO RETIRE Fonterra independent director John Waller will retire from the board on August 31.

He has served as a director with the dairy co-op since 2009.

Fonterra chairman John Wilson says Waller is retiring to reduce his workload.

During his time at Fonterra, Waller has chaired its fair value share review committee, the trading among farmers due diligence committee and the milk price panel, as well as being a member of the audit and finance committee and the risk committee.

“John has been an outstanding director of our cooperative and has made an invaluable contribution by combining his strong personal values, drive and leadership with commercial common-sense,” Wilson says.

Waller says he has seen Fonterra develop into a strong position to deliver increasing returns to its farmer shareholders.

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The coalition government will also note investigations by ASIC and ACCC into the Murray Goulburn and Fonterra decisions, Joyce says.

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RURAL NEWS // AUGUST 23, 2016

14 NEWS

Trusted science voice taking on new challenge she hopes this will provide “a foundation for pamelat@ruralnews.co.nz what must be done for NZ through the EPA over the WHEN PROFESSOR Jacqueline Rowarth next few years”. was 16 in England she She will move to considered aiming for the Wellington to take up the Olympics in sailing, but, new role in late October. as many teenagers do, Rowarth says she decided to “save the years of experience in world” instead. communicating science Rowarth decided to to students, public and focus on sustainable news media will serve her food production well in the new “because if you position. don’t have food She thinks you just have war “We all have to evaluate the EPA or starvation”. was looking and contribute but “You particularly for as chief scientist the absolutely have to communication be able to produce overarching thing is in science food sustainably, communication because it and that’s why I wants a higher – education in a am here in New profile; part Zealand because of Rowarth’s different form.” we do it best.” role will be Currently explaining the professor complex in environmental of agribusiness at the matters so people can University of Waikato, she agriculture, and a PhD understand. in soil science (nutrient will take that passion to “I do a lot of talking to the newly created position cycling); she has worked society groups. We talk in research in carbon, of chief scientist for the about their concerns and Environmental Protection nitrogen, food and what they can do about it economics.

Authority (EPA). or I allay their concerns.”

She told Rural News She will provide She will evaluate PAM TIPA

scientific analysis, policy advice and communicate on many primary sectorrelated challenges such as genetic modification, the use of glysophate, the emissions trading scheme and climate change, in addition to issues outside primary industries.

Rowarth holds a degree in agricultural science with honours

Jacqueline Rowarth will soon take up the role of chief scientist at the Environmental Protection Agency.

science for policy recommendations, looking at the science behind a wide range of issues, similar to what she does at the university.

As chief scientist she will provide policy advice

to the chief executive who works directly with the ministers. The climate change and environment ministers are the main ministers the EPA reports to. It also provides information

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to the Environment Court. The EPA has five scientists with such major portfolios as hazardous substances, new organisms, economics and the emissions trading scheme.

“We all have to evaluate and contribute but as chief scientist the overarching thing is communication – education in a different form,” she says.

She has worked with journalists for many years, trying to get science understood.

She has done a lot of work in ETS and carbon and nitrogen recycling which have impacts for the ETS. Genetic engineering is another challenge for the board.

“It is absolutely about creating policy to enable NZ, because the economics have to be in there as well,” she says.

“I am looking forward to it – while it is still education, it is a different part of education. You need a very broad but

analytical view,” she says.

The EPA’s chief executive Dr Allan Freeth says Rowarth has a depth and breadth of experience that covers agricultural science, environment and agribusiness.

“She has long been an advocate for using accurate science and data to make good decisions to manage NZ’s natural resources.

“At the EPA we’re proud of the work we do and the robust scientific assessments that support our decisions.

“As chief scientist, Jacqueline Rowarth will be in a position to use her expertise to explain our science, so people can have trust and confidence in the decisions we make.

“She has already established herself as a trusted voice for science.

She has the gift of being able to speak simply, even about things that seem complicated. And she listens: she values other people’s views.”

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RURAL NEWS // AUGUST 23, 2016

16 NEWS

Rain brings hope, but no drought-breaker NIGEL MALTHUS

North Canterbury farmer Nick Hamilton points out the extent of drought damage on his property to Primary Industries Minister Nathan Guy when the minister last visited the region back in late June.

NORTHEASTERLY RAIN in the droughthit Hurunui on the weekend of August 13 was the “most exciting”

since April 2014, says Federated Farmers North Canterbury president Lynda Murchison.

Murchison recorded 15mm at her farm at Weka Pass, between Waipara and the Amuri Basin, and

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Hurunui drought committee chairman, district mayor Winton Dalley, also cautioned against too much optimism. With its variation of hills and valleys the district’s rainfall could be “extremely random”, with 100% variation within a couple of kilometres. He had heard reports of some areas of the coastal strip receiving 50-60mm, but it was still superficial.

Dalley says one farmer trying to plant trees found dry hard ground only half a spade depth below the surface.

The North Canterbury drought is officially New Zealand’s longestrunning, declared in February 2015 and with relief measures recently extended to the end of this year.

While heartening, the weekend rain has done “nothing convincing” to the levels measured in ECan’s groundwater monitoring wells, said ECan groundwater science manager Carl Hanson.

“Every little bit does help. It was reasonable rain. But to bring groundwater up we still need a lot more.”

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says the best part was steady rain all day.

“Our rain’s come in showers, either from the nor’west or the sou’west, for the last two and half years. That was the thing we noticed. It came in from the northeast, it came in quietly and it just rained constantly all day.”

“It’s not a droughtbreaker in terms of the quantum of rain but it’s a huge psychological boost,” Murchison told Rural News.

She says with the ground starting to warm up and the days getting longer, the rain should be “a bit of a boost” for spring grass growth – maybe not soon enough for farmers with lambs already, but useful for those with fodder crops now underway.

However, Murchison adds that farmers remain cautious. Many thought they were out of the woods when the Hurunui district got about 100mm of rain in January, “then February arrived and that was it. So I think people are still cautious about what it might mean and certainly no-one’s planning on not being in drought mode for a wee while yet”.

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NEW ZEALAND farmers need to govern their businesses better to avert stagnation and drive longterm prosperity, says Grant Coombes, Waikato.

Coombes, a dairy farmer, is a director and shareholder of a new Waikato firm called Directors Inc Ltd. He milks 2200 cows on five farms and in equity partnerships, is a director of other companies and is seeking a seat on the board of Ballance Agri-Nutrients.

Coombes says if farmers adopted good governance practices they would enjoy greater long-term benefits and more easily deal with issues unique to the industry.

He says effective governance in farming would focus on matters such as financial reporting, risk management, human resources, environmental issues, health and safety, and strategic and succession planning.

Directors Inc offers an ‘angel director’ service.

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RURAL NEWS // AUGUST 23, 2016

18 NEWS

Focused on becoming truly global PAM TIPA

T&G GLOBAL is focused on becoming a truly global business, says Darren Drury, executive general manager pipfruit at T&G. “Our goal is to consistently deliver the highest quality product to the world,” he told the recent Horticulture NZ conference.

The growth isn’t just to make a return for shareholders; they also want to be successful for their growers and

suppliers, customers, people and the communities they operate in, he says.

“We are now the largest grower by export volume and value in several categories.

“We market 10 billion tonnes of apples globally and aim to double that.

We are the single largest glasshouse grower in the country covering several rugby fields.

“We produce an average of 13 million kilos of tomatoes each year – a third of NZ’s total supply.”

Drury says while fully grounded in NZ, the company is also expanding its offshore presence with new offices in China, Washington state, Thailand and Vietnam in addition to its existing sales teams in key northern hemisphere markets.

“We are also excited to be working in close association with Zespri marketing kiwifruit and apples in Thailand, Cambodia, Myanmar and Laos,” he says.

“We also have an extensive network of export sales offices in many territo-

ries in the southern and northern hemispheres -- NZ, Australia, Peru, Chile, Africa, USA, Canada, UK and France.

“Our aim is to be close to our key customers and increase our insights through instant feedback and keeping an ongoing presence in the market.”

But NZ will always be the company’s home,” Drury says.

“We are committed to supporting the NZ industry and attracting young talent. We know we are up against an ageing population and a lack of excite-

ment about horticulture among young people, as a generalisation.

“We have heard a lot about technology and its role in the future of our industry. We have a full belief at T&G Global that people are the key to creating a sustainable industry in the future for stakeholders.”

Drury says T&G looks forward to working with the industry and government to ensure our produce sector remains world class and a cornerstone of our economy.

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Synlait managing director John Penno.

SYNLAIT GROWS ON INFANT FORMULA

Keep an eye on the Aussies too.

www.ruralnews.co.nz

STRONG INFANT formula sales are boosting returns for South Canterbury milk processor Synlait.

The company reports a near four-fold increase in canning volumes, from 4300MT last year to 16,000MT in the 2016 financial year.

Synlait managing director John Penno says canned infant formula volumes have grown steadily since the commissioning of a packaging plant in 2015.

“These value added products generate stronger margins than commodity products, improving our product mix and spurring an overall higher gross profit per MT,” says Penno.

Synlait’s gross profit per MT is estimated to be $880/MT in FY16, versus $593/MT in FY15.

Penno says the company continues spending on customer development and operational excellence, “expected to lead to future growth in infant formula volumes and improvements in key drivers, such as reduced inventory and increased quality performance, in future periods”.

Last week, Synlait Milk forecast net profit after tax (NPAT) for FY16 in the range $34-$35 million.

Underlying NPAT for FY16 is forecast $32-$33 million.

Earnings guidance for the financial year ending July 31 2016 is to clarify market expectations of this year’s performance.

“Our ability to meet this demand has driven our FY16 earnings forecast,” says chairman Graeme Milne.

Operating cashflows for FY16 will be about $100m versus $16.3m in FY15, leading to reduced net debt and improved leverage ratio, which will finish at about 2.5x.

RURAL NEWS // AUGUST 23, 2016

NEWS 19

All Black hopes to give farmer welfare programme a kick NIGEL MALTHUS

IN FARMING, as in rugby, the key is having the mental edge, says the new ambassador for Farmstrong, Sam Whitelock.

“If you’ve got any 15 guys who play professionally, they’re roughly the same size, weight, height and strength, and doing all the right things with their nutrition; the difference, especially over the last five to ten years, is the mental game,” he says.

Whitelock was speaking at the Hurunui Rugby Club rooms in Culverden where his involvement in Farmstrong was announced.

He will front a campaign fittingly called ‘Lock It In’, largely consisting of a series of short videos in which he gives tips on various mental wellbeing coping techniques, encouraging farmers to find what works for them and then ‘Lock It In’.

Launched at 2015 Fieldays by the Mental Health

Foundation and FMG, Farmstrong is aimed at promoting personal wellbeing in rural communities. The Accident Compensation Corporation has now joined as a strategic partner.

FMG’s chief operating officer, Conrad Wilkshire, told the Culverden gathering it was fitting to hear about Whitelock’s involvement at the home of a rugby club enjoying a successful season.

“It’s all about staying physically fit, being on top of your game, having a plan. You don’t just rock up at the start of a season and end up with those kind of results, at any level, without a road map for the season,” Wilkshire says.

“Mental health and physical health, their attributes, and the things we do, are exactly the same.”

Wilkshire says Farmstrong is “a genuine partnership dealing with a really relevant message”.

Farming is in a tough

All Black Sam Whitelock, ambassador for Farmstrong, pictured with Toko Morrell, a relationship manager for ACC; and Conrad Wilkshire (right), chief opertaing officer of FMG, both sponsors of the project.

time, especially with the drought in North Canterbury, and that is testing farming businesses and farmers personally.

As a professional rugby player, Whitelock (27) has played as a lock for the All Blacks, the Crusaders and Canterbury, often alongside his three brothers.

His father Braeden, himself a former Junior All

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Black, is still farming near Feilding in Manawatu, where the brothers were raised.

With a BSc in plant science from Lincoln University, Whitelock also expects to go farming

when his professional rugby career is over.

He says he enjoys getting out onto mates’ farms, helping out or going hunting. Both his farming experience and his rugby career have prepared him for the Farmstrong role.

“My parents are still farming. My older brother was a rugby player and now is farming as well.

Uncles, aunties, cousins... are currently in farming.

So I’ve spent a lot of time with them talking about issues and how they deal with them,” he says.

“Being a country kid and going to a country school that had a couple of school farms, farming’s always been part of my life, so has sport. So it’s

been cool to try to show what I’ve learned from sport and help out with farming if possible.”

Whitelock says Farmstrong videos being made include tips on how to deal with pressure, such as writing to-do lists “so you don’t overthink things,” and how to get a good night sleep.

“I’ve found it tough to sleep before a big game – a few nerves.

“So there’s one [video] coming up on that which should be a bit humourous.”

Whitelock is impressed with Farmstrong’s achievments in its first year, and he jumped at the chance to get involved. “I hope I can give it a little more kick.”

RURAL NEWS // AUGUST 23, 2016

20 MARKETS & TRENDS MARKET SNAPSHOT Me at

BEEF MARKET TRENDS

No rth Is lan d

S o u th Is lan d

C h an g e c /kg

L as t We e k

C h an g e c /kg

L as t We e k

L amb - PM 16.0kg

+5

5 .7 3

n/c

5 .4 3

S te e r - P2 300kg

n/c

5 .6 0

n/c

5 .3 0

B u ll - M2 300kg

n/c

5 .5 0

n/c

5 .0 0

Ve n is o n - AP 60kg

+5

8 .1 0

n/c

8 .1 0

c /kgCWT

LAMB MARKET TRENDS LAMB PRICES

BEEF PRICES c/kgCWT NI

2 Wks A go

Last Year

P 2 Steer - 300kg

n/c

5.60

5.60

5.95

M 2 B ull - 300kg

n/c

5.50

5.50

5.95

P 2 Co w - 230kg

n/c

4.50

4.50

5.15

M Co w - 200kg

n/c

4.50

4.50

5.05

Lo cal Trade - 230kg

n/c

5.65

5.65

6.00

SI

P 2 Steer - 300kg

n/c

5.30

5.30

5.80

M 2 B ull - 300kg

n/c

5.00

5.00

5.20

P 2 Co w - 230kg

n/c

4.20

4.20

4.30

M Co w - 200kg

n/c

4.20

4.20

4.20

Lo cal Trade - 230kg

n/c

5.55

5.55

5.80

No rth Island 16.0kg M Lamb Price $6.5

Change

Last Week

$5.5

$4.5 15-May

15-Jun

15-Jul

15-Aug

This Year 15-Sep

40k

15-Oct

Last Year

150k

This Year

100k

5.71

5.66

5.36

+5

5.73

5.68

5.38

P X - 19.0kg

+5

5.75

5.70

5.40

P H - 22.0kg

+5

5.76

5.71

5.41

M X1 - 21kg

n/c

2.80

2.80

3.30

YM - 13.5kg

n/c

5.43

5.43

5.21

P M - 16.0kg

n/c

5.43

5.43

5.23

P X - 19.0kg

n/c

5.43

5.43

5.25

P H - 22.0kg

n/c

5.43

5.43

5.26

n/c

2.68

2.68

2.90

M X1- 21kg

N ort h Island Weekly Lamb Kill

5yr Ave

k 8 May

$6 .5

k 15-May

$6 .0

+5

50k

20k

S outh Island 16.0kg M Lamb Price

M utto n

15-Jun

15-Jul

15-Aug

15-Sep

8 Jun

15-Oct

5yr Ave

S outh Island Weekly Cattle Kill

30k

$5 .0

This Year

$4 .5 15-May

15-Jun

15-Jul

15-Aug

15-Sep

k 8 May

10k

No rth Island 300kg Bull Price

k 15-May

15-Jun

15-Jul

15-Aug

15-Sep

8 Jun

Export Market Demand

$4 .5 5yr Ave

$4 .0 15 -May

15 -Jun

15 -Jul

Last Year

15 -Aug

This Year

15 -Sep

15 -O ct

S outh Island 300kg Steer Price

$6 .0

95CL US$ /lb NZ$ /kg

$5 .5

Change

Last Week

2 Wks A go

Last Year

5yr A ve

-2

2.23

2.25

2.66

2.30

-7

6.83

6.90

8.96

6.44

D e mand Indicator - US 95CL B eef

$3.00

8 Jul

8 Aug

8 Sep

8 Oct

Export Market Demand

15-Oct

Change

Last Week

2 Wks A go

Last Year

UK Leg £/lb

n/c

1.80

1.80

1.58

1.86

NZ$ /kg

n/c

7.50

7.50

8.65

8.49

$5 .5 $5 .0

8 Oct

100k

This Year

15-Oct

$6 .0

This Y ear

8 Sep

200k

Last Year

20k

8 Aug

300k 5yr Ave

Last Year

Last Year

8 Jul

S outh Island Weekly Lamb Kill

400k

$5 .5

Last Year

200k

5yr Ave

$5.0 Last Year

SI Lamb

2 Wks A go

P M - 16.0kg

250k

N ort h Island Weekly Cattle Kill

60k 5yr Av e

M utto n

Last Week

Slaughter

Slaughter

$6.0

Change

c/kgCWT NI Lamb YM - 13.5kg

D e mand Indicator - UK Leg Price

£2.50 £2.00

Last Year

£1.50

This Year

£1.00 15-May

$2.50

5yr A ve

15-Jun

15-Jul

15-Aug 15-Sep 15-Oct

$5 .0

$2.00

$4 .5

5yr Ave

$4 .0

Last Year

$3 .5 15 -May

This Y ear

15 -Jun

15 -Jul

15 -Aug

15 -Sep

Last Year

Procurement Indicator

This Year

$1.50 15-May

15-Jun

15-Jul

15-Aug

15-Sep

15 -O ct

Procurement Indicator Change

2Wks A go

3 Wks A go

Last Year

% Returned NI

+1%

80.5%

79.7%

65.85%

73.2%

% Returned SI

+1%

73.2%

72.5%

58.0%

66.2%

No rth Island 60kg S tag Price

$8 .5 $8 .0

$7 .5 $7 .0

5yr Av e Last Year This Year

$6 .5 $6 .0 15 -May

15 -Jun

15 -Jul

15 -Aug

15 -Sep

15 -O ct

S outh Island 60kg Stag Price

$9 .0

85%

5yr A ve

2Wks A go

3 Wks A go

Last Year

% Returned NI

1.3 %

77.3%

76.0%

63.0%

71.6%

% Returned SI

0.0%

72.7%

72.7%

61.3%

70.5%

P rocu rement Indicator - North I.

70%

1-Jul

This Year

1-Aug

1-Sep

1-Oct

This Y ear

75%

P rocu rement Indicator - South I.

70% 65% 15-May

Last Year

50% 1-Jun

Last Year

5yr A ve

80%

60%

P rocu rement Indicator - North I.

80%

Change

15-Oct

80%

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

$8 .5

70% 60%

$8 .0

80%

$7 .5

P rocu rement Indicator - South I.

75%

$7 .0

5yr Ave

70%

$6 .5

Last Year

65%

$6 .0 15 -May

This Year

15 -Jun

15 -Jul

15 -Aug

15 -Sep

15 -O ct

Last Year

Last Year This Year

50% 1-Jun

This Year

1-Aug

1-Sep

1-Oct

Venison Prices Change

Last Week

2 Wks A go

Last Year

NI Stag - 60kg

+5

8.10

8.05

7.05

7.15

SI Stag - 60kg

n/c

8.10

8.10

6.90

7.37

60% 55% 15-May

1-Jul

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

5yr A ve

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

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RURAL NEWS // AUGUST 23, 2016

MARKETS & TRENDS 21 NEWS

PRICE WATCH

SLAUGHTER BEEF: The strength of

the NZ dollar has reduced margins for processors, making them reluctant to compete using schedules. This is despite the fact that slaughter rates through the North Island are low. Many processors believe there are just not the volumes of cattle still on-farm, and therefore lifting prices will do little to increase kill numbers. The South Island cattle slaughter market is in a similar position. The bobby calf kill is in full swing, and some South Island plants are busy enough with these, taking some of the pinch out of competition for cattle. This is reflected in the fact that operating prices for prime actually eased recently. Local trade has been firmer, however.

STORE BEEF: Weather conditions are dictating demand in the store cattle front in the North Island. Drier conditions in areas that were struggling with excessive rainfall has brought about more interest, while snowfall and harsh winter weather across the east coast have softened prices there. South Island store activity has lifted in recent weeks. The mild conditions of June and July have been and gone, bringing out a few more cattle that would have otherwise been offloaded earlier.

Pricing for good quality lines has been positive, but poorer quality lines haven’t been well sought after. The middle-

ground for four-day Friesian bull calves has been $90 in the South Island.

INTERNATIONAL BEEF: Interest from US beef importers has been dormant in recent weeks. The volume of product offered to the market has been low, particularly from Australian sellers, however this hasn’t been enough to keep prices firm. Many US buyers have stepped out of the market due to caution on a numbers of fronts.

They anticipate a rush in US production over the next few months, and are therefore waiting to see how this impacts on the US domestic market.

The US government has also announced the lift of a ban on Brazilian beef imports. Brazil has only been allocated a small quota which they have to share with four other countries.

However there is concern that Brazil may send additional volumes to the US and simply accept the 26% tariff placed on out-of-quota imports, as Uruguay did in the early 2000’s.

SHEEP: There’s been a much

anticipated lift in slaughter prices for lambs lately. Numbers coming out in the North Island are short, creating a surge in procurement competition. In the two weeks to August 12, prices shot up by 30c/kg, and are now 3035c/kg more than a year ago. The South Island market hasn’t experienced the same level of

WOOL PRICE WATCH

Overseas Wool Price Indicators

Change

11-Aug

04-Aug

Last Year

Indicators in US$/kg

Coarse Xbred

-8

5.05

5.13

4.78

Coarse Xbred

Fine Xbred

n/c

5.45

5.45

5.26

Fine Xbred

Lamb

-

-

-

6.25

Mid Micron

-

-

9.00

10.50

Indicators in NZ$

Wool Indicator Trends

850

CXI

FXI

11-Aug

04-Aug

Last Year

n/c

3.67

3.67

3.78

+7

3.97

3.90

4.42

Lamb

-

-

-

-

Mid Micron

-

-

6.44

6.87

Wool Indicator Trends

550

LI

750

650

Change

CXI

500

FXI

450

LI

400

550

350

450 Aug

Oct

Dec

Feb

Apr

300 Aug

Jun

Feb

Apr

Jun

450

Last Year

600

Dec

Coarse Xbred Indictor in US$

Coarse Xbred Indicator

650

Oct

This Year

400

550 350

500 450

Last Year

Oct

Dec

Feb

Apr

Jun

300

Aug

competition. Large portions of lambs coming in for slaughter are on supplier contracts, while the bobby slaughter has kept some plants pre-occupied for the time being. It is likely we will observe some lift in spot-market rates in the coming weeks, especially has bobby numbers start to taper off. Store markets have softened a little

Oct

Dec

Feb

Apr

This Year

Jun

Aug

through the North Island. Confidence in spring lamb schedules is low, while the turning of crops has also reduced some buying power from the market. Supply through the South Island is low, but pricing has held very stable. Trades of ewes with lambs at foot are becoming more frequent as more lambs hit the ground.

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RURAL NEWS // AUGUST 23, 2016

24 AGRIBUSINESS

Grow success on a proven foundation.

Nufarm South Island logistics supervisor Tony Schreuder, managing director and chief executive Greg Hunt, and regional general manager ANZ Lachie McKinnon cut the ribbon on new Christchurch facility.

Proline is a leading fungicide for disease control in barley, wheat and ryegrass seed crops. Its quality formulation is trusted by many farmers as the flexible fungicide of choice, forming the foundation for their fungicide programmes.

Nufarm grows to supply southern farmers and growers

For higher yields, greater financial returns and peace of mind, think ‘Proline first’.

ONE OF New Zealand’s biggest crop protection companies recently opened a distribution hub believed the only one of its kind in the South Island, quadrupling its capacity in a fast growing market.

Nufarm NZ says it has invested hundreds of thousands of dollars and months of preparation in the new Christchurch facility, which can now stock a broader range of products and began processing its first orders late July Covering 1600m2, with enough space for 2000 pallets of product, the warehouse will be supplied direct from the company’s Australian manufacturing plant to supply customers South Island wide.

“With local staff, plus offices and work space for Nufarm’s expanding Canterbury technical and sales team, this is a major infrastructure development, reflecting its confidence in the South Island primary sector,” says Nufarm NZ country manager Gavin Kerr, who cut the ribbon on the new warehouse in early August with Nufarm managing director Greg Hunt, Melbourne.

“We’re now capable of holding four times as much product in the South Island as we used to, and that’s a huge step forward in storage space and our ability to meet the demands and needs of our South Island market, now and in future,” Kerr says.

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Founded 1916 as NZ Farmers Fertiliser.

The company is also seeking another territory manager for the Nelson Marlborough region. Australia and NZ form one of four regional hubs for Nufarm.

Increased irrigation, land use intensification and the growth of South Island viticulture and horticulture all make for a steady rise in Nufarm’s southern business, Kerr says.

“We have also grown significantly in the range and diversity of products we provide to primary sectors – whether new herbicides for fodder beet on pastoral farms or new fungicides for pipfruit production.”

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RURAL NEWS // AUGUST 23, 2016

AGRIBUSINESS 25

Vision means risk and diversity PAM TIPA pamelat@ruralnews.co.nz

SIX KEY areas should be built into the DNA of primary industry organisations for their success, says KPMG global head of agribusiness Ian Proudfoot.

“You need to stand and look at what is coming at you,” Proudfoot told the Horticulture NZ conference in Nelson this month.

“How the market is changing and how it is evolving. But not just looking at the information that’s saying ‘you’re on the right course’ but looking at all the information.

“Having a clear vision of the world you will be selling into in the future and what the coming generations are going to sell into – you need to be thinking very far into the future.”

In governance you need to be putting the wind under the wings of people leading your businesses, he says.

“When I look at board meetings I see 80-90% of the time is spent on risk, compliance and what happened last week as opposed to what is going to happen in the future,” he says.

“We need to turn that balance around. Our

boards need to be focused on strategic direction and growth. The compliance stuff can be managed effectively and quickly by having smart systems and good reporting.

“If we don’t get our governance right our organisations will not have the ability to take a step forward.”

Diversity is needed on boards – a mix of young, old, women, men and cultural minorities.

Proudfoot says we also need to be prepared to take risks.

“This is a big problem for New Zealand because we are a small country and have very shallow news media,” he says.

“If the government doesn’t get it right we are very quick to learn about it; but in fact failure is good, we learn from failure, we move forward from failure.

“We need to develop a culture in which we can learn from failure; we need to get a cultural mindset that accepts that failure is part of learning the business.

“We need to take risks because if you look at the risks we are taking in science at the moment – the PGP projects – a lot of those are relatively limited risks. They are not the big bold ambitious risks

that we need to take to position ourselves to lead the world as we need to.

“We need to look globally for the right partners to invest in the right innovation and the

right people. Investment into consumer insights needs to be a key area.

Overall you are an industry that has the potential to transform New Zealand.”

Ian Proudfoot says growers and farmers need to be thinking very far into the future.

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The award recognises the cooperative/ mutual that has made the most significant and positive impact in the cooperative community over the past year.

“FMG has been fully involved in community investment with such programmes as principal sponsorship of the NZ Young Farmer of the Year, rural crime prevention advice and guidance, and support for farmers and growers by attending, hosting or sponsoring hundreds of rurally focussed events in New Zealand each year,” said NZ Co-Op chief executive Craig Presland.

FMG chief executive Chris Black says the award is an honour and recognises the commitment and good work of everyone at the company “who helps achieve the things we do on behalf of members and clients”.

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RURAL NEWS // AUGUST 23, 2016

26 OPINION EDITORIAL

EDNA

Time to move on!

NOW THAT Silver Fern Farms’ farmer shareholders have voted resoundingly, for the second time, in favour of the merger with Chinese company Shanghai Maling it is time the deal was done.

In October last year, SFF farmers gave overwhelming support for Shanghai Maling’s $261 million investment in New Zealand’s largest meat processor. However, a group of minority shareholders – led by English businessman and high country runholder John Shrimpton and Canterbury ram breeder Blair Gallagher – unhappy with the deal, fought to get it overturned and forced a re-vote.

This month’s special meeting saw another huge mandate given by shareholders who favour the joint venture. In both votes, in excess of 80% of SFF shareholders have backed the merger. Whatever the motivations of the Shrimpton/Gallagher dissident group, they now must accept this majority decision of shareholders and move on.

Shrimpton, who pledged to shake the hand of SFF chairman Rob Hewett if his bid to stop the deal failed, has done just that.

While the vast majority of SFF farmers may have been frustrated and annoyed by the delay and costs incurred by the dissident shareholders move, that, as Hewett says, is the price of democracy. Farmers still unhappy with the deal can send their livestock to another processor.

But it must now be said frankly that SFF farmers’ anger may rightly be directed at the shady and underhand political opportunism of outside voices – with no right to be involved, in any way, in the dealings of a privately owned company – namely Winston Peters and others. Peters and his cohorts have tried to inject themselves into the debate by stirring up conspiracy theories, xenophobia and outrageous untruths in an effort to promote their own agendas.

Farmers would do well to remember these antics, especially at the ballot box next year.

Meantime, all that remains for the merger to go ahead is the stamp of approval from the Overseas Investment Office and the Government.

SFF is confident the deal will clear all the hurdles to get the OIO tick of approval. If it does, we may expect this new joint venture to be the gamechanger for the industry its proponents claim it will be, and that it will realise its market potential by means of the Chinese company’s connections and expertise.

Hewett says the new partnership will create a strong Silver Fern Farms. Let’s hope it does because the red meat industry needs a gamechanger.

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

“OK girls, what’s it to be – gold medal eggs for breakfast or bronzed chicken for tea?”

THE HOUND

Want to share your opinion or gossip with the Hound?

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

Wogistan?

Winning friends

Schizophrenia?

Really!

THE HOUND was astounded to learn that NZ First has more than one MP – extra to the member for North Korea... sorry, Northland. However, the party’s primary industries spokesman Richard ‘Dick’ Prosser message is essentially the same – a NZ First antiChinese rant. Prosser claimed China’s “threatened” action against access to its market for NZ dairy, wool and kiwifruit was a warning to the whole primary sector against too much dependency on China. Dopey Dick then implored NZ primary producers and exporters to build new partnerships with other countries to lessen our dependency on the whims of one major buyer. A mate of the Hound suggests one such new country could be “Wogistan”, of which Prosser once claimed intimate knowledge.

YOUR CANINE crusader notes his old mates at fishing lobby Bitch & Complain (Fish & Game) are living up to their moniker – bitching and complaining. But this time they’re not picking on farmers but a potential competitor. A Wanaka developer of a new salmon ‘fish-out’ facility has complained Fish & Game NZ opposes the project to protect its own commercial interests. Graham and Hayley Lee were granted resource consent last November for their operation along Cameron Creek where they plan to offer the public a chance to catch chinook salmon from large ponds. Their consent application is opposed by Fish & Game .Lee has questioned the organisation’s motives. “The true reasoning for Fish & Game’s objections to the development is to restrict competition for the recreational dollar,’’ Lee claims.

THE HOUND reckons PR operatives don’t do themselves many favours at the best of times, especially when they play both sides of an argument. An interesting example is one PR gun-for-hire who has worked for some time for Shanghai Pengxin in its bid to convince the OIO that the Chinese company is a good bet to invest in New Zealand. On the other hand, the same spin-doctor was also recently engaged by John ‘The Pom’ Shrimpton and his little band of malcontents who tried – and failed – to prevent Shanghai Maling from advancing its 50/50 joint venture in meat company Silver Fern Farms because the Chinese firm was not a good bet to invest in NZ. Your old mate is confused. Does this highly paid mouthpiece only support Chinese investment in NZ when the company’s last name is Pengxin rather than Maling ?

THIS OLD mutt had to giggle when he saw that Silver Fern Farms was voted New Zealand’s ‘most trusted’ meat brand by consumers polled in the Reader’s Digest 2016 Most Trusted Brand survey. Apparently Silver Fern Farms came out on top in the meat and poultry category this year, ahead of brands such as Tegel, Hellers and Ingham. Your old mate reckons John Shrimpton, Blair Gallagher and Winston Peters et al would have had kittens when they saw the outcome of this survey.

As one wag suggested, he’s now waiting for Peters to demand a parliamentary enquiry or royal commission into the Readers Digest survey, claiming it’s all the PM’s fault and how the board and management of SFF have manipulated the survey and should therefore resign.

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RURAL NEWS // AUGUST 23, 2016

OPINION 27

The threat of zombie towns and lost opportunities THE BIG cost of implementing the national policy statement on water is likely to impact rural communities.

Beyond the ‘opportunity cost’ of restricting primary sector activities is the threat of losing employment in general and young people in particular.

The spectre of ‘zombie towns’ is back.

In a report to the technical leaders group for the Healthy Rivers Wai Ora Project, University of Waikato economist professor Graeme Doole, NIWA catchment scientist Dr Sandy Elliott and director of market economics Dr Garry McDonald have modelled how to achieve the Healthy Rivers Vision: restricting land use is key.

Doing so will have direct economic impacts.

The authors calculate that the impact on value-add processing, support industries and the production aspects totals $7.8 billion, and at least 5000 jobs will be lost.

While nobody could challenge the ideal of such a vision, the standards being set are higher than those of the national policy statement and higher than in overseas countries.

Of course New Zealanders want to claim the high ground in environmental quality, but a reality check is warranted before damage is done.

NZ already has a farm succession challenge.

Bright, motivated young people are increasingly choosing career paths that do not include agriculture and food production; money is easier to make in other sectors. With a few exceptions, most of them – including those who have chosen other career paths – want to make their mark.

PWC’s ‘Great Expectations: the next generation of family business leaders’, reported that 88% of next-generation family business leaders want to leave their stamp and do something special with the business. They can’t if land-use change and type

careers. Still more support for young farmers comes via interest rates of only 1% for them to buy hill country farms and 2.5% for flat land farms

of primary sector operation is restricted.

Discussions in Waikato include land slope (15 degrees), stock type, nitrogen use, fencing at 3m from a water body, cropping with a buffer zone of 5m from waterways and winter forage crops. Permits will be required for any different activity; the nightmare of paperwork is not what anybody wants to face – let alone the younger generations.

Questions are already being asked about who will want to farm under such restrictions.

In Europe, the rural landscape is maintained through Government support for farmers.

French interns at the University of Waikato, Lydie Guibert and Samuel Rousseliere (studying law and engineering, respectively, in France) have reported that dairy farmers in France received on average 32,971 euros.

Beef farmers received 42,793 and sheep farmers received 40,802 euros.

Despite subsidies, 6% of dairy farmers, 11% of beef farms and 9% of sheep farms still incurred a loss.

The data come from the French Ministry of Agriculture this year.

The subsidies are according to land area, production and environmental initiatives. In 2015, the Common Agricultural Policy budget was 38% of the EU’s budget – 58 billion euros. And in the last year, an extra 1 billion euros has been allocated to assist struggling farmers.

But wait, there’s more.

Young farmers in France are given an extra 70 euro/ha, and grants of 15,000 euro, to encourage them into agricultural

versus 3.8% to buy others.

NZ has no such initiatives and no national strategy for encouraging young farmers into land ownership. Restricting the

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RURAL NEWS // AUGUST 23, 2016

28 OPINION

New season springs potential positivity AS WE head into spring and the new season ahead we are also, at last, seeing signs of positivity in the rural sector.

Dairy prices hit their highest level so far this year in the August 3 GDT auction, encouraging cautious optimism that a corner might have been turned by the struggling industry. The overall GDT index gained 6.6%, with an average given price of US$2435 per metric tonne, the highest since last November.

The all-important whole milk powder price lifted 9.9% to US2265/t, the highest since December 2015.

At present Fonterra is sticking with its forecast payout of $4.25/kgMS which the co-op only reaffirmed on August 1.

But it says its earnings per share – and therefore a potential dividend – will be up to 60c. That would see, on current forecasts, a payout of up to $4.85

for this season, much better than the measly $4.30 last season. But still not flash.

Commodity prices rose for a third straight month in July, led by dairy products and meat. The ANZ commodity price index rose 2%, bringing its three-month gain to 6.9%. According to the bank, dairy rose 4.1% month-onmonth, with meat up 2% in the latest month – led by a 4.4% increase in lamb prices and a 2.1% gain by beef. The horticultural sector also is doing well, with notably strong returns in kiwifruit and apples.

Meanwhile, other positive signs for the rural sector include PGG Wrightson, recently posting stronger-thananticipated annual results and both

fertiliser co-ops Ravensdown and Ballance also announcing strong profits and rebates to shareholders.

While these early positive signs do not mean everything is booming in the sector – far from it – it makes a nice change to see a brighter outlook for the new season ahead.

In the meantime, another degree of certainty farmers need is that the people they hire to work for them know what they are doing. As head of Rural Contractors New Zealand, I urge farmers to ensure the agricultural contractors they engage are members of our organisation.

In tight times, some farmers may

think getting the cheapest person to do contracting work is a good way to save money, but this can prove false economy. A recent case saw a Central Otago farmer lose a $60,000 linseed crop due to a mistake in applying spray to a crop.

If farmers use a registered chemical applicator, preferably a member of RCNZ, they can ensure as far as possible that the potential for these kinds of mistakes is minimised.

RCNZ members who are part of our registered chemical applicator scheme are trained and regularly updated in the safe and expert handling of applying chemicals to crops and pastures. Our chemical application accreditation programme aims to meet the needs of our members and the industry as the application of agrichemicals has to be carried out in a competent and profes-

sional manner to ensure the enhancement of the crop and the safety of the operator, the environment and the public.

Of course mistakes are going to happen, but using a RCNZ contractor who is part of our insurance scheme means they will have insurance cover in these types of circumstances.

We all know farming is full of uncontrollable factors – the weather, commodity prices and the value of the dollar. But by farmers using contractors who are registered and part of RCNZ, they can at least lessen the chances of something untoward and costly happening.

• Wellsford-based agricultural contractor Steve Levet is the president of the Rural Contractors New Zealand (RCNZ).

RURAL NEWS // AUGUST 23, 2016

OPINION 29 WHAT ABOUT ROUNDUP? MARK ROSS states (Rural News, August 9) “The NZ National Chemical Residues Programme report” confirms there are no food safety issues with NZ grown food. He goes on to say MPI sets “very conservative limits for residues in foods”.

Perhaps so for all the crop protection chemicals listed on the ‘Maximum Residual Levels for Agricultural Compounds Notice’, but not listed in that notice is Roundup. Glyphosate is listed, but the MRL pertains to fruit only. I am not aware of any fruit crop management strategy that includes spraying fruit with glyphosate either pre- or post-harvest?

Questions for Mark Ross: Is the strategy of spraying cereal crops with glyphosate as a harvest aid practised on cereal crops grown in NZ? How widespread is the practice of spraying potato and onion crops in NZ with glyphosate as a harvest aid?

How widespread is the practice of spraying glyphosate only, as opposed to herbicide formulations that contain glyphosate as the active ingredient, such as Roundup?

Steve Clark Wainui

A BIGGER PHONE BOX, PERHAPS? THE HOUND’S sources for his column seem well off the scent as he comments on ‘Selfish fisherman and the Outdoors Party’ (Rural News, Aug 9).

I guess we can’t blame the old mutt if he’s been tied up in his kennel for the last year or so, but once off the leash he should at least check the simplest facts.

The Outdoors Party has possibly more members than some parties already in Parliament. Many of its members are land owners/farmers including the two co-leaders, and one is in fact a past member of Federated Farmers.

So your run in the paddock has been cut short; back in your

kennel, boy, for another few days.

David Haynes, who commented on the Ruataniwha dam asking where the evidence is to back up the claims of environmental benefits, is not and has never been a fishing guide nor lived in Wellington; he lives in Nelson and farms a small rural block.

Never mind, a trip to

the dosing strip might fix the Hound.

Alan Simmons Co-leader, The Outdoors Party • Editor’s note: Mr Simmonds is correct in saying Mr Haynes is a Nelson resident; he lists ICT consulting and freelance writing as his main occupations. The Hound stands corrected

and is confined to his kennel for more training for getting this wrong.

However, the old mutt remains unapologetic, and insists the Outdoors Party – which he reckons sounds more like an end-of-year Xmas do than a political party – would still only need a telephone box to accommodate its entire membership.

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all @robhewettsff: Ni how @shenweiping.

Great news: we have beaten the dissident shareholders and the re-vote has seen a massive 80% of our shareholders back the merger with Shanghai Maling. Isn’t democracy a wonderful thing! #oneyearlater #amillionbucksdownthetube @shenweiping @robhewettsff: What the fluck is democlacy? Is that the name of the ‘agent’ you got to ‘fix’ this ploblem? I alleady told you how we deal with dissidents in China.

Why you not listen to me? Things will change when I get my feet under the desk at SFF. #changeiscoming

I told Tom straight

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@winstonfirstandlast: Who says 80% is a mandate? I demand a recount and to know just exactly who these mysterious 80% of SFF farmer/shareholders are. I was confident SFF shareholders would reject this deal as sure as Valarie Adams would win a gold medal at Rio…. wait a minute, I demand an enquiry into why Adams only got silver. #mydogwhistlenolongerworks

™

@johnpmccarthy: Oh @winstonfirstandlast; I just can’t believe that SFF farmers have not listened to our over-the-top, dire warnings re the Chinese. What do these ingrates know that we two has-been, windbag conspiracytheorists have not made up? By the way, I’ve plenty of spare dog whistles you can always borrow. #wishibecameajudgelikedaddy

@bgallagherexmie @ jshrimptonkiwibloke: Mr Shrimpton, ma lord. I know we lost the SFF vote, but can I still carry your bag, clean your shoes and drive your car? Please? Also do you want to buy a Perendale ram for the lambs you will send to SFF? #whatwillidonow @doconnorlabourmp: As Labour’s agriculture spokesman I just want to tell the 80% of farmers who supported the SFF/Shanghai Maling merger that they are bloody idiots. Meanwhile, why farmers don’t vote Labour is beyond me? #whoistheidiot #disconnecteddamian

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RURAL NEWS // AUGUST 23, 2016

30 MANAGEMENT

Changing the definitions of GM PAM TIPA pamelat@ruralnews.co.nz

THE GENE editing tool CRISPR is set to change our definitions of genetic modification (GM), says

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flexibility and there is no transfer of genetic material between organisms.

“It will work on any living organism and more precisely causes exactly the same sort of genetic changes that can occur naturally. You can never detect that it has been used on a product,” he told the Horticulture NZ conference.

This poses challenges and opportunities for the horticulture industry, among many others, because under New Zealand law this is regulated in the same way as transgenic technologies – those which mix genetic material between organisms, Landon-Lane says.

Danish think-tank that says capital is becoming less of a concern for business than talented people. He urged conference participants to think about how to attract and grow the talent that would make their success possible.

One area will be Maori: in NZ Maori now hold 10% of the kiwifruit sector. Many iwi and Maori organisations are looking at opportunities across a wide spectrum of horticultural crops and food products.

“This new interest and investment by Maori promises big things for horticulture – great potential there – land and capital but also new opportunities in branding, potentially

In most other countries, if there is no mixing of genes between different organisms, that’s not defined in regulation as genetic modification.

In most other countries, if there is no mixing of genes between different organisms, that’s not defined in regulation as genetic modification.

“So there is potential for NZ to be outcompeted by advances in technology that weren’t contemplated when the regulations were written,” he says. “Let’s be clear though, Plant and Food will only deliver food with technologies that our customers and NZ want.

“You know what your consumers want and what your competitors are doing and today your industries have told us you don’t want us to use many of the genetic tools available.

“We hear you and we are keeping those technologies firmly in the lab. But new technologies are changing the nature of the questions being asked in this space.”

On another issue, Landon-Lane quoted a

new crops and certainly a pool of young people who would help us all meet the need for talent.

“A third of Maori are under 15 years old so there’s your talent pool.

But they are millennials: much is written about millennials – those born between 1982 and 2003.”

Millennials typically want to know how the company they work for will make a difference in the world and what it values. They want a tech-friendly environment, teamwork and entrepreneurial spirit. They want the organisations they buy from or work for to contribute to social or ethical causes they feel are important.

“To me that feels like a great fit with the entrepreneurial, tech savvy food that is good for you and good for the planet – the NZ horticulture industry.” @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 23, 2016

32 MANAGEMENT

Reluctance to blow their own trumpets WAIRARAPA SHEEP and beef farmers Tim and Nicola Hewitt are proud

property south of Pahiatua.

Reluctant at first

of the environmental work on their family’s 724ha (640ha effective)

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to enter the Horizons Ballance Farm Environment Awards (BFEA), they finally gave it a go.

“We didn’t want to be [heard] as blowing our own trumpet,” says Tim. “But ultimately farmers have a responsibility to our industry to show we are trying to do a good job in the environment.”

The Hewitts entered their 6700 stock unit Balfour Farm in the 2016

awards and found it worthwhile.

On awards night the family and their staff enjoyed mixing with like-minded entrants and won two category awards, including the CB Norwood Distributors Agri-Business Management Award.

The judges say the Hewitts showed they understand “how to manage the resources in a sustainable manner so future generations

will be able to farm”.

They also commend their commitment to water quality, their strong intergenerational thinking and robust business growth strategy.

Hewitt says he is proud of his family’s efforts to protect the environment.

“I don’t think we are the greatest farmers by any means, but I can look anyone in the eye and say ‘I am doing all I can to improve’.”

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Tim and Nicola Hewitt were initially reluctant to enter the Ballance Farm Environment Awards, but are glad they finally gave it a go.

www.farmtofarm.co.nz He says the BFEA judging was a stimulating experience.

“Knowing that the judges, including our farming peers and past award winners, are visiting the farm makes

you think hard about what you are trying to achieve. The whole process was well done.

The judges made us feel relaxed and we enjoyed talking to them about what we were doing on the farm.”

Hewitt was happy to win the Agri-Business Management Award because he enjoys the business side of farming and puts a lot of work into improving the longterm sustainability of the operation.

Succession planning is another focus, one he regards as “a positive and exciting challenge”.

“Nicola and I appreciate what our family has done for us and we hope to do the same for the next generation. We have four children and we enjoy bringing them into the discussion. “[The awards are] good for our industry so the more people who support it, the better.

If you are considering entering, give it a go.

You’ve got nothing to lose.”

Entries for the 2017 Ballance Farm Environment Awards close on September 16, 2016. It costs nothing to enter and entry forms are available online at www. nzfeatrust.org.nz .

www.ruralnews.co.nz/enewsletter

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RURAL NEWS // AUGUST 23, 2016

MANAGEMENT 33

Timing is everything AN ATTRACTIVE farm hugging the Waitara River, Taranaki, is getting on top of gorse and Californian thistles after years of battling them, reports Ravensdown.

Two years ago, Bryan Hocken asked the company to look at his thistle problem: 40% of the farm was financially restricted by the Californian thistles and the rest was struggling.

Hocken was keen to try anything, he said.

“We had a mass of Californian thistles; it was a disaster, to the point where the dogs wouldn’t want to muster the sheep.”

The problem was beyond weed wiping because of some of the terrain, so Ravensdown agronomist Jeremy Klingender steered Hocken and his sonin-law Jared Coogan towards aerial spraying.

Initially it was important not to lose their clovers in the process. But they got sacrificed: aerial spraying gave better control and

a more concentrated approach as they got more chemical on the thistles, Klingender says.

They began by spraying 40ha with Ravensdown’s Multiple and had 90% success.

Since then, using variable control methods over the property has shown that timing, the density of plants per square metre and the amount of chemical applied has a big effect on control.

The gorse is under control, and Hocken and Coogan are also making headway against the thistles.

Klingender says he followed Massey University’s suggestion of timing the weed wiping at 50% flowering. When the plants start to die off it’s too late. Weed wiping must be done before the plant starts dying down; too late and the control is nowhere near as good.

The farmers are now looking to increase the application of Multiple to 500ml/10L with the weed wiper to keep up

momentum.

So far, applying Multiple at 1L/ha on thick stands is most effective at controlling the thistles.

Says Klingender, “We’re looking to address the thick stands of thistle by increasing the concentration of Multiple that we’re using weed

wiping.

“While Coogan’s weed wiping hasn’t been working as well to date, weed wiping rather than mowing is a better approach because once you start mowing you become a slave to the thistles. You end up mowing two to three

times a year for at least two years in a row to keep on top of it.

Klingender says weed wiping the 5-10% regrowth 12 months after spraying is best practice and he thinks the increase in chemicals will produce much better results.

The Hocken’s Taranaki family farm has battled against gorse and Californian thistles for a long time.

SIR ED’S SHED MARK DANIEL markd@ruralnews.co.nz

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MASSEY FERGUSON tractors will be used to help the New Zealand Antarctic Heritage Trust raise $1 million to preserve Sir Edmund Hillary’s hut in Antarctica.

Known as Hut A, it was the first building at Scott Base and the starting point for Hillary’s trek to the South Pole in 1958. Now the hut is decrepit and needs saving, partly because it was important to Sir Ed, says his son Peter Hillary.

“Dad often talked about his time in Antarctica and the trip to the South Pole,” he says.

“This major achievement was an extreme challenge after Everest. He spent a lot of time there and I know he’d want it saved.”

Antarctic Heritage Trust director Nigel Watson says Hillary’s use of three Ferguson tractors on the polar trek was controversial. It was the first land trip to the pole by motor vehicle.

Now the restoration fundraiser will this Wednesday (August 24) set out on Expedition South, leaving from Piha beach, west Auckland, for Aoraki Mount Cook (finishing just below the Hillary Ridge).

The group will travel on three tractors for about four weeks, stopping at schools, Hillary ‘hotspots’ and MF dealerships to receive public donations. They will drive 2012km, the distance covered by the Hillary expedition.

Two of the tractors will be Ferguson TE-20s – as driven in 1958 – and one will be a new 120hp MF 5612 on loan from Massey Ferguson.

The loaned MF5600 is identical to that used on a 2014 trek across the ice by Mannon Ossevoort; she travelled from Novo Base to the South Pole. It will be the support vehicle for the two TE20 tractors.

RURAL NEWS // AUGUST 23, 2016

34 ANIMAL HEALTH

Parasite management plans underpin productivity PAM TIPA pamelat@ruralnews.co.nz

FARMERS NEED good parasite management plans in order to continue to grow stock well into the future, says Victoria Chapman, vet operations management at Zoetis.

Good stewardship requires advice about using the right drench at the right time for the right stock class for the right situation, and other tools available to make products more sustainable, she says in a paper to the NZVA conference.

The ‘tools’ for worm management include: Nutrition Leaving good feed residues behind allows young animals to have reduced exposure to infective parasite larvae, most of which are in the bottom 2–3cm of grass.

Additionally, provision of good quality feed will make more protein and energy available to the immune system to help fight parasite challenge.

Use of longer-acting drenches Long-acting treatments prevent infective larvae from becoming established, thus allowing the animal to be more productive. However, any resistant genes in the worm population can give resistant larvae an advan-

tage over the susceptibles.

Use of long-acting drenches should be restricted to when they are needed, ie animals in poor condition, facing a large worm challenge, poor feed or if stressed or compromised.

Minimise use in adult stock In general, treatment of adults should not be necessary. However, in certain circumstances such as poor nutrition, low BCS, illness or other stressors, a worm treatment may be beneficial.

By not drenching adults, a healthy population of susceptible parasites can be maintained onfarm and they can be used as a ‘refugia’. These animals must graze where drenched animals graze, for the refugia to be effective.

Refugia is the part of the worm population not exposed to a drench, so they have not had selection pressure applied to them; they are ‘susceptible’ and can reproduce and produce more ‘susceptible’ offspring. The aim is to keep the ‘susceptible’ part of the population greater than the ‘resistant’ part, so that the drenches can still remove most of the parasites from the animals.

Use combination drenches

Modelling data and onfarm trials have demonstrated the benefits of using multiple actives together. Where possible, combinations should be used. In many situations this may not be possible, such as if a nil withhold is needed (lactating cow) or persistent action is desired. Different products can also be given at the same time, to make up a combination to achieve two goals.

Monitoring Faecal egg counting (FEC) has more limited application for cattle than in lambs and adult sheep, where the correlation of egg count to worm count is high.

Drench checks (a 10 day FEC post drenching) can indicate whether there may be a problem or not. A full faecal egg count reduction test (FECRT) can and should be done to help determine drug efficacy on each farm, but results should not be interpreted absolutely.

Pasture/ stock management A big part of managing parasites is minimising exposure of animals to infective larvae. This can be achieved with grazing plans that allow for rotation of older animals to follow younger ones and different species to follow each other.

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Silage and hay cut from paddocks where calves have been grazed will help reduce larval numbers or crops can be rotated through those paddocks.

Residual pasture length should be kept higher than 2cm. Use older, undrenched animals to prepare pastures for younger animals.

Preventative drench programme Young non-immune animals produce most of the eggs, contaminating pastures for other stock.

Monthly preventative drenches can reduce the egg and larval load on pasture and prevent a large peak in autumn. Leaving a long drench interval (>30 days) increases the opportunity for egg contamination of pasture in lambs.

Although there is no equivalent data, this is probably the case for young cattle too, hence planned regular treatments are important.

Targeted drenching Alternatives to the monthly drenches are monitoring and anthelmintic treatments as required. This entails a much more intensive approach -- monitoring weights, FECs, pasture quantity/quality, BCS, etc, but it can cut down drench use when it is not needed.

Targeted selective treatments (TST) is a similar system, drenching only those animals that need it, based on growth rates, but it is also very intensive.

This has been used successfully in dairy heifers.

In some situations, adult dairy cows may need an anthelmintic treatment.

Refugia Managing suitable refugia is now a key part of sustainable parasite management.

Targeted treatments, minimising use in older stock, and minimising use of long-acting drenches are all elements in managing refugia.

Refugia can be increased on dairy farms by not drenching all the herd on the dairy platform, especially at the TO PAGE 37

RURAL NEWS // AUGUST 23, 2016

ANIMAL HEALTH 35

Dairy sector slow to react on drench resistance The dairy industry has been slow to react to anthelmintic resistance, says Victoria Chapman.

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40

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THE DAIRY industry has been slow to act on anthelmintics resistance, says vet operations management at Zoetis, Victoria Chapman.

The cattle anthelmintic market exceeds $35 million for the 10m beef and dairy cattle in New Zealand, so there is no shortage of anthelmintics being used, says Chapman.

But use of products, often with no veterinary oversight or plan, has led to the development of anthelmintic resistance (AR), she says in a presentation to the NZ Veterinary Association (NZVA).

A survey of North Island beef farms in 2005 showed that ivermectin resistance was present on 92% of the farms, benzimidazole resistance on 76% and levamisole resistance on 6%, she says.

“It is widely acknowledged that dairy farms, especially heifer grazing blocks, will be in a similar or worse situation. The dairy industry has been slow to act on this information.

“Meanwhile, in the sheep, beef and deer industries, the level of AR is acknowledged by vets and farmers, and progress in altering farmer behaviour by education is being made.

“A greater focus on this area is required by the dairy industry. Otherwise, it will find itself with reduced drench options, off-label use of products and forced management changes.”

There is a formidable array of broad spectrum endoparasiticides registered for cattle in NZ: at least 130 are listed on the Ministry of Primary Industries website, although not all are marketed, she says.

There are 50 pourons, 32 injectables and the remainder are orals; this number may seem daunting, but many contain the same actives or have similar label claims.

No one product is per-

deer the concepts are likely to be useful to these groups as well.

the trial work had come from), but in lieu of specific data for cattle and

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pamelat@ruralnews.co.nz

fect for every animal, farm or situation and all products have their pros and cons.

“We are lucky in NZ to have a variety of products available to help design a drench plan as part of the best parasite management programme to suit the individual needs of each farmer and his farming operation,” she says.

Historically, one of the problems farmers faced was conflicting advice from pharmaceutcial companies, vets and other advisors on how to manage parasites.

Because of this the initiative Wormwise was developed by the sheep and beef industry, as an industry agreed, national worm management strategy. Wormwise is led by representatives from Beef + Lamb NZ Ltd, NZVA, AGCARM (representing the pharmaceutical industry) and MPI. It began in 2005, running workshops for farmers and vets nationwide. After a few years, through lack of funding, it took a less active role, still producing quarterly Wormwise newsletters and maintaining a technical advisory group, but it lost ground.

“Recently, changes to its structure have allowed Wormwise to become a trust with its own website, with the aim to be the central repository of information on internal parasites,” Chapman says.

“While it began as a sheep and beef initiative, the aim is to incorporate the whole production animal health industry, including dairy and deer.”

At the latest strategy meeting in 2015, representatives from DairyNZ and Deer Industry New Zealand were also involved for the first time, she says.

One Wormwise objective was to get agreement by stakeholders to enable consistent messages to be presented to farmers.

These became the principles of worm management.

These were developed for sheep (where much of

30

20

10

0

30

20

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V2+14

V1

V2+14

(Black lines depict the number of non-responders)

In a recent New Zealand trial, we tested Multine® against one of the other leading 5-in-1s with the vaccines being administered at both tailing and weaning. In both cases the results were more than conclusive. Lambs vaccinated with Multine saw a significantly better immune response against Pulpy Kidney and Tetanus than those vaccinated with the competitor 5-in-1.

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RURAL NEWS // AUGUST 23, 2016

36 ANIMAL HEALTH

Hardy lambing aid saves many lives If there’s a chance you might get a ewe or two with a bearing this lambing season you can do yourself, and the ewes, a favour by having a few Bearin prolapse harnesses on hand, says Ian Carr of animal health company Rurtec.

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“If it’s a triplet ewe, ewe from arching her back although the twine can THE CAUSE of prolapsed saving her can mean and straining. Ewes are cut between the legs and uterus (bearings) in ewes saving four lives: three the udder and through the able to lamb through the in New Zealand has been prime lambs and a cull plastic tubing of the haruterus as the ewe tries to studied since the 1950s. ewe for the works – a ness and they can also be lamb or to re-prolapse.

Incidence is higher in used on prolapses occurAnything that sews ewes with multiple lambs, pretty good return on a ring after lambing. the vulval lips closed is a those eating bulky feed, $25 harness investment.

Feedback from farmwelfare issue as the ewe or on steep hills if they “We were very pleased ers who had used Bearin needs to rip these sutures lie with their head uphill. with the harness,” say harnesses is very positive. or ear tags or safety pins There is evidence sugRobert and Lucy ThorneyMost found they worked gesting changes in feeding out in order to lamb. This croft, the 2015 Wairarapa well to keep the bearing in sheep and beef farmers causes pain and tissue level during early gestawhile allowing the ewe to damage, and brings a high tion can contribute. of the year. “It was easy There is no effect to put on and adjust of body condition for ewes or hoggets.

If it’s a triplet ewe, saving her score and no eviThey are comfortable can mean saving four lives: dence that fat ewes for the sheep while are more likely keeping the bearing in three prime lambs and a cull ewe to have bearings. for the works – a pretty good return place.

While many farm“We had a higher ers believe this anec- on a $25 harness investment. success rate in lambdotally, trials set up ing ewes with bearings lamb. Some had an issue risk of infection. to test this theory have using the harness than with getting them firmly Research continues all shown that fat and with any other method we over the vulva in smaller into practical methods to thin ewes suffer the same have used. The harness is ewes, but the good news prevent bearings. Meanprevalence of bearings. reusable, making it good is further adjustment has time, a harness provides Bearings are a serious value for money and we been added above the tail, a humane and effective health and welfare issue. recommend it. The only so this will no longer be method to deal with indiSurvival of a ewe treated issue we can see is the difan issue. vidual ewes with a proby a farmer is reported to ficulty in catching the ewe “The harnesses are lapse. This is made of be around 50%. The disto remove the harness awesome; they are robust wide strapping, which advantage of using bearafter lambing.” and easy to use and pregoes around the neck of ing retainers (‘spoons’) is Bearin prolapse harvent the ewe arching her the ewe, along the back that anything inside the nesses are available from back to strain,” say Matt and around the hind legs, vagina stimulates the ewe veterinery and farm and Lynley Wyeth, Spring to strain more, making her and has plastic tubing supply stores at $25 (RRP) Valley Farm, Wairarapa to apply pressure to the more likely to push the per harness. If cleaned (Beef + Lamb NZ’s demvulva. The strap around bearing out again. after use and looked after onstration farm for triplet they can be used year after the neck plays an imporBinder twine ‘hartant role in preventing the lambing). nesses’ can work well, year.

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RURAL NEWS // AUGUST 23, 2016

ANIMAL HEALTH 37

‘No’ works wonders with young dogs ‘NO’ IS a magical word with dogs; how you teach it and use it relates to its success or failure.

Start teaching it at about five weeks of age, but if the dog is older and has never heard it before it will soon learn the meaning.

Pups already understand a growl, thanks to the dam – it is their language for ‘No’ – and if it doesn’t take notice of a gentle growl, the bitch will either snap at the pup or gently mouth it. This is a threat, a fright and doesn’t inflict pain. The pup soon learns to respect a growl.

Start with a gruff growl followed by ‘No’. No means what you are doing is wrong; whatever it is, stop doing it. If the pup is jumping up... ‘Mate – Grrr – NO’ and give it a smack with a rolled-up newspaper at the same time.

Chewing your bootlaces or trouser leg... ‘Mate – Grrr – NO’ – smack with newspaper. I said smack: that means once, not a beating.

Why a newspaper? I doubt you want to get down and mouth your pup, so a rolled-up newspaper works perfectly; it doesn’t hurt, makes a noise and gives a fright; kinder and more effective than a kick or most other means.

Roll one or two sheets

Start teaching pups at around 5 weeks of age.

of newspaper into about a 25mm diameter tube and seal it with tape in several places. It needs to hold its shape, but still be soft; the idea is not to cause pain.

Pup’s name (gets attention)... ‘Grrr, emphasised NO’, and at the same time the discomfort from the newspaper. It will very quickly learn that ‘NO’ means ‘stop what you are doing, it’s wrong’. You will

only need to use the newspaper a few times.

Keep using the ‘Mate Grrr – NO’ for a week or so, then drop the ‘Grrr’ and just use an emphasised ‘Mate -NO’; use it whenever it is doing something it shouldn’t be, such as chasing the cat or chooks, chewing things, etc.

Don’t – I emphasise don’t – say ‘NO’ if it is chasing stock. It is a pup bred to chase stock. By saying ‘NO’ you are telling it that chasing stock is wrong; one day you will want it to chase stock. Too many people ruin pups and put them off working and then shoot them because they’re not interested. Rubbish, the person is at fault!

Don’t allow a pup to be in a position to chase stock in the first place; and if it does – due to your inattention –either call it to you, or tell it to ‘leave it’, which I will cover in my next column.

Once the pup understands ‘No’, use it whenever necessary. Like all commands, don’t overuse it, and use it only when appropriate. Always be consistent; don’t allow it to do something for a week and then one day out of the blue say ‘No’; how on earth will it learn if you are inconsistent?

Why I love this word ‘no’, and when it really comes into its own, is when a dog is working.

Rather than constantly giving a dog commands and directing its every move like a robot, I like to say ‘No’ (that’s wrong).

This allows the dog to think about what it is doing and what it should be doing instead.

Trust me, dogs really will think if you give them the opportunity. It is an absolute joy working with an intelligent, clever, happy-in-its-work canine that can think and react quicker than you.

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

On high performance sheep farms, stock become more vulnerable to clostridial disease, especially sudden death syndrome. If you’re seeing unexplained deaths, especially in young stock or sending replacements away to achieve high growth rates, then it’s time to upgrade to the advanced clostridial protection of Covexin® 10.

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PARASITE MANAGEMENT PLANS A quarantine drench is one that should remove as many parasites as possible, as insurance against bringing on resistant parasites from another property. The best quarantine drench is one to which there is no existing resistance. As stated earlier, there is resistance to all the single actives registered for cattle but less so to the combinations and to all three actives together.

Once quarantine drenched, animals should be left in yards to clean out (so any resistant eggs aren’t added to the pasture of the new farm), with food and water, for at

least 24 hours.

After this, animals should be released onto pasture contaminated with plenty of ‘susceptible’ larvae to dilute any resistant survivors.

Additionally, incoming susceptible larvae can breed with the resistant survivors, hence diluting the resistant genetics.

Genetics There is a strong focus on breeding worm resistant and resilient sheep, however this is not happening yet in genetic selection of cattle, whether they are beef or dairy.

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ELE-01949S-RN

FROM PAGE 34

same time, running undrenched dry cows with younger stock on runoffs and rotating or integrating undrenched cows with drenched calves on the dairy platform.

Strategic drenches, eg quarantine drench A strategic drench is one used for the purpose of delaying anthelmintic resistance.

It will also remove the worms from the animals as a routine or preventative drench will, but isn’t necessarily part of a drench programme.

ELE_01949S_RN (390x110).indd 1

16/08/16 10:03 AM

RURAL NEWS // AUGUST 23, 2016

38 MACHINERY & PRODUCTS

Tractor puts big to shame MARK DANIEL markd@ruralnews.co.nz

PETER BUTTERICK’S yard near the coast in central Canterbury gives the impression of a man with ‘heavy metal disease’, such is the array of tractors and machinery lined up ready to go to work.

The latest addition to his fleet, a Versatile 520 Commemorative Edition, isn’t easy to miss, decked out in Waikato colours red, black and yellow – as the song goes, “tall enough to catch an elephant’s eye” – and tall enough to give you a crick in the neck.

The Versatile packs big numbers: it tips the scales at 21 tonnes, has a Cummins 15L 6-cylinder engine pumping out 520hp+, 1500L fuel tanks and eight oversized tyres of 42 inch diameter.

Having owned a 1984 vintage Versatile 895 for six years, Butterick knew the pedigree of the Canadian prime movers, which dates back to 1966 when Versatile made the first mass-produced 4WD tractor – the D100.

The new machine is a far cry from the original in technology, but marks 50 years of the company’s specialisa-

tion in 4WDs and its reputation for machines built tough to keep going.

This is evidenced by the 895, clocking up 32 years and 10,000 hours and still earning its keep.

Butterick’s Wakanui 462ha property grows wheat, barley and potatoes and overwinters local dairy animals. This puts pressure on time in spring when green feed land has to be brought back into the arable cycle, which effectively means about two thirds of the total acreage has to be cultivated twice each year.

Butterick’s machine had clocked up only 100 hours at the time of Rural News’ visit. The owner had a smile on his face, having already seen the 520 hooked up to a 12 furrow Rata plough and a 9m Maxi-Till cultivator pulled at 12km/h, ‘browning up’ 10ha an hour.

First impressions were the impressive power and throaty engine noise, a welcome departure from the headache inducing, high-pitched turbo whistle that plagued the North American 4WD Butterick traded for the 520.

He also praised the huge cab with floor to ceiling glass, which offered excellent visibility and the smoothness

The Versatile 520 Commemorative Edition tips the scales at around 21 tonnes, has a Cummins 15 litre/ six cylinder engine; pumping out 520+ horsepower, 1500 litre fuel tanks and eight oversized tyres of 42 inch diameter.

of the CAT-sourced TA 22 powershift transmission.

His only problem seemed to be tracking down the journalist who broke

the story in Rural News about the Commemorative Edition in January, which germinated the seed and resulted in the July delivery. One thing’s for sure,

no need for flashing beacons when this baby’s out on the road; if you can’t see her coming you must be an old-boy of the Stevie Wonder school of motoring.

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RURAL NEWS // AUGUST 18, 2015

MACHINERY & PRODUCTS 45 MACHINERY & PRODUCTS 39 RURAL NEWS // AUGUST 23, 2016

Good gear key factor in It’s really record crop rather good!

WARREN DARLING from Timaru knows a bit about growing barley, so much soMARK he broke the GuinDANIEL ness World Record for the markd@ruralnews.co.nz crop with 13.8 tonnes/ha in RECENT YEARS April, with crophave harvested on January year. brought a raft23ofthis SUVs Darling and his wife underpinned by offerings Joytheir farm makers’ 450ha ofutes. coastal from land thevehicle, south side Oneon such theof Timaru and are dedicated Mitsubishi Pajero Sport, who hascropping the DNAfarmers of the Triton wheat is and utegrow and barley, quite simply canola.

When they found among the best in the out the world genre justexisting now, considerrecord for barley had sat at ing specification, warran12.2t/ha for 25 years they ties and price. decided to give it a nudge.

First impression is Though the presence: thisbreaking is a big vehirecord had needed a smidcle, accentuated by large geonarches of luck,that Darling wheel take believed the planning 265-60R18 alloys with centredto onspare threefor keysuspenareas: room soil fertility, agronomy and sion movement. climate.

In the engine bay, Over the last eight the MIVEC 2.4L turboyears the Darlings charged intercooledhave diesel usedpushes a minimal motor outtillage 135kW system largely centred and 437Nm torque, and on the business’s Great although not exciting itPlains Simba SL500 cultivator does what’s needed to that uses a combination move things along and of discs, atines rollers returns fueland figure of to incorporate previous crop 8.0L/100km. residues back into the The 8-speed auto top levels of thecomes soil profile, transmission in and thereby increase soil for special praise, being organic matter. smooth and refined. On The work cycle for the long inclines the box the crop is relatively picked a gear it liked and simple with base fertiliser stuck with it, unlike some requirements taken care of other multi-speed boxes post-harvest, and a single in the market which show pass with the SL 500 to indecision and hunted start residue breakdown. through the speeds trying Any volunteers are taken to find one they like. care of with an applica-

tion of Roundup until the autumn, when drilling takes place with a Great Towing is rated Plains capacity Centurion cultivaattor 3100kg drill. (braked) – good for boats, horsefloats or The use of the SL500 trailers, andbycombined followed the Centurion helps the number with thereduce sub-choices in oftransmission passes and control the the should killer good of all crops comenable on- or–offpaction.

The effects of road performance. compaction are further The transmission mitigated by the use of choice is 2WD, 4WD a tracked Versatile Hi and 4WD-Lo, the tractor forchoice the cultivation middle allowing and drilling.

Any post-emeruse on sealed roads at gence work fertiliser 100km/h.

On with the rough or spray is done by a constuff 4WD-Lo well hanventional tractor operatdles mud and inclines, ingcombines on tramlines. and with the hill For the best agronomy descent function to keep advice Darling worked things under control in withdownhill his consultants, The tricky sections.

Agronomy Group and In 4WD-Lo the driver The Exclusive Group to can also useGrain four selectensure the seed best able modes for gravel, suited to the coastal location; mud, sand or rock, whichfurther advice was supplied manipulates engine, transby Ballance Agri-Nutrients mission and brakes for and Bayer Crop best progress. Science to get things justseems right. ‘difRide quality A Vicon Geo-Spread ferent’ at first – a feeling took care of variofspreader sitting slightly higher able rate fertiliser applicathan in a first-generation tions, on previously SUV, butbased confidence soon surveyed soil grid maps builds as one realises that thatwhen gave an indication even hustled though of the existing nutrient bends or curves, everylevels. thing stays in control.

The weather played its Like all vehicles of this part: good rainfall during type the Mitsi tends to be the winter ensured plenty a little ‘springy’, a legacy of soil moisture during the of the ute roots no doubt, early growing season, and but with a little weight a hot dry summer brought on board to compress the the crop to maturity. springs, everything softWarren pointed out that ens up. “our coastal location gives

rise to a large number of easterly breezes. These help keep the disease presAs expected, sures down andsafety give long iscool highnights on theduring agenda, the including grain fill blind-spot period.” monitoring, forward crash mitWith the crop grown, there came harvest, igation and athe multi-view a complicated partthe of camera, ideal when theview equation because it side was selected, Guinness prototorequired help park this sizeable cols to be followed truck in tight spots. with JP’s serving as indepenOther features include dent witnesses in the rain sensing wipers, speed

paddock. Then crop samples had to be sent to AsureQuality, Palmerlimiter, trailerand stability ston North, confirmacontrol, brake tractions given byassist, SGS that all tion control, hillrules starthad World Record assist been and met.vehicle stability Warren Joymissed were control; notand much surprised thesheet. existing off the check record had Plenty ofstood spacefor too:25 years, true verKiwi even inbut thein 5-seat fashion, “they gave it still a go, sion driven there was and knocked the bugger 675L of boot space with aoff”. full complement; this

Warren Darling pictured with his Great Plains Simba SL500 cultivator.

The Mitsubishi Pajero Sport is probably one of the best SUV’s going around just now.

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RURAL NEWS // AUGUST 23, 2016

40 MACHINERY & PRODUCTS DOCKING YARD DEALS! Add a drench/force race kit to your existing tailing set up.

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Electronic tracking – hero or zero?

MARK DANIEL markd@ruralnews.co.nz

ELECTRONICS RULE: whether in basic GPS guidance, yield mapping or electronic ear tag readers, the need for instantly easily accessible data and subsequent adjustments or actions has made everyone a lot more efficient.

With tractors and implements, early pioneers did their own thing, but soon came the need to standardise the way data moved around, hence the ISOBUS infrastructure that allows two machines to ‘talk’ to one another.

The resultant plugand-play technology allowed an operator to back up a tractor to an implement, couple up, plug in and control the implement from the tractor’s shiny control screen.

If nothing else it removed all those different implement control boxes traditionally bolted to the right hand door frame. Well, that’s the theory anyway.

In many cases the resultant hair-pulling and furrowed brows suggested the theory didn’t always

The need for instantly easily accessible data has made everyone more efficient.

work; shiny implements behaved like unruly teenagers, ‘failing to communicate’ with their prime movers.

To this end, and to help potential users adopt the technology without too much pain, the Agricultural Industry Electronics Foundation (AEF) has developed an initiative which sees implements carrying an ISOBUS Certified label. This shows its suitability via a matrix of

six boxes which display the system architecture used within its control systems.

While this will give the operator some basic confidence in compatibility, referencing the AEF ISOBUS database will give much clearer indications.

In practice, the operator logs onto the free website at www.aef-isobus-database.org, clicks on the manufacturer of the tractor and finds the

right model, before finding the implement producer and the model in mind, from where a list of compatible modules in each will be displayed.

The database should also prove useful to engineers or technicians asked to sort out problems.

They will then be able to access the site, identify possible conflicts, download fixes or add to the repository with details of ‘fixes’.

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Interestingly, a quick look now at the database gives an insight into the reason for some of the incompatibility. Many manufacturers have varying amounts of ECU software that is certified: Kverneland has 43 items certified, Claas and JD sit on 18, while at the other end of the spectrum SDF and Argo Tractors each have only one listing. www.aef-isobus-database.org

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RURAL NEWS // AUGUST 23, 2016

MACHINERY & PRODUCTS 41

What’s in a name?

MARK DANIEL markd@ruralnews.co.nz

IT CAN be hard to differentiate between models in a product range.

Take the Case IH Farmall U Pro; the latest version, named Luxxum, goes into full production in early 2017. The change is likely because the specifications of this tractor have largely left the original Farmall series well behind and it now has more in common with its larger siblings.

Aimed at mixed farms looking for a higher specification, the Luxxum range comes in three models – 100, 110 and 120 (99, 107 and 117hp respectively).

The power plant is a 4-cylinder, 3.4L FPT engine with Tier 4 emission regulations met by a combination of SCR and cooled EGR technology. The manufacturer notes that in this configuration EGR is limited to around 10% compared to the more typical 15-20%, and this makes less demand on the tractor’s cooling package.

Torque is greater than in the previous range: the Luxxum 120 delivers 490Nm at 1500rpm and hits maximum power at 1900rpm.

Main changes are the ZF sourced transmission and the maker’s decision to bring layouts in line with models in the higher power ranges.

In the cab, the first key change is the adoption of the familiar MultiController: the fixed main lever is used to control direction, power shifts, linkage and

hydraulics, and it has a de-clutch button and diff lock controls.

Further away, to the operator’s right, is a new joystick for loader control and operation of front or rear hydraulic services, which should simplify loader fitment and plumbing. For those still hooked on things mechanical, an alternative cable operated joystick can be specified.

Also interesting, and aimed at those wishing to exit the cab to the right, is the ability to hinge the complete MultiController assembly upwards and out of the way.

The transmission of 32F and 32 R speeds is split by a mechanical hi-lo (field/road) selection and four ranges offering four powershift steps. While automation changes powershifts in a range in field mode and in road Mode, it also further extends the shifts to ranges. Fine tuning allows setting the range of gear changes and start-up speed for road mode, while throttle settings can be tweaked to influence short shifts and save fuel, helped further by 40km/h being reached at 1750rpm.

Fine tuning shuttle take-up and aggression is controlled by a rocker switch that allows three settings.

Up front, a new optional suspended axle, taken from the larger Maxxum series, improves comfort and traction off-road. This has three settings for comfort and an accumulator to improve ride; it switches on automatically above 12km/h.

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Manual adjustment to raise or lower the tractor is included, while the extra dimensions allow an increase in maximum permissible weight to 8 tonnes from the previous 7.5 tonne rating A choice of 80 or 100L/ min closed centre load sensing system can be

The Luxxum range is due out in 2017 and will offer three models designated 100, 110 and 120, which deliver 99, 107 and 117hp respectively.

specified. The former offers mechanical only controls, while the latter allows mechanical or electrical functions for control of up to four sets of rear remotes and the 5600kg capacity rear linkage. @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 23, 2016

42 MACHINERY & PRODUCTS / RURAL TRADER

Know your wheels Machinery editor Mark Daniel follows up his August 9 article on basic safety in LUVs with a look at the vehicle itself and basic driving techniques.

NOW THAT you’re legal with your LUV, is it time to head out onto the property?

Not quite; let’s look around the vehicle to understand how systems work and what effect they have on use.

Foremost is transmission, probably one of three types: a variable hydro transmission (VHT) such as found on a Kubota RTV; a multi-stage torque convertor type as found in a Honda Big Red; or the more common constant variable transmission (CVT) found in most LUVs. VHT systems pump hydraulic fluid to cause drive and so are very controllable, in that taking your foot off the throt-

tle will halt the machine and hold it on inclines; whereas CVT units rely on friction between a drive belt and clutch pulleys to cause drive; this throws up differences.

Under acceleration the pulleys overcome spring resistance by centrifugal force and move together; this grabs the drive belt to move the vehicle. Conversely, when you decelerate the pulleys move apart and the drive is lost, allowing the vehicle to freewheel, so downhill some throttle is required to maintain drive, and speed is controlled by the brakes.

Now let’s look at 2WD, 4WD and differentials, most NZ vehicles have somewhere in the drive-

line. The action of the diff is crucial: most vehicles use a rear differential which, when locked will couple both rear wheels together, allowing them to rotate at the same speed.

So the choice becomes diff locked or unlocked, the latter the choice for hard surfaces when traction isn’t normally a problem – you don’t want to damage the ground or create ‘wind-up’ in the machine’s drive line.

Once into trickier going, 2WD and diff ‘locked’ improves traction and allows some steering, although some skidding of the rear wheels is required to make a turn. Ultimate traction is achieved with 4WD engaged and the diff locked, but there is

a bonus in getting some wind-up in the transmission, useful particularly when descending hills.

Other details: tyres, often overlooked, can have the greatest influence on performance and safety. LUV or quad tyres have no radial ply construction to help them hold their shape, so tyre pressure is critical. Overinflation increases their circumference, which decreases the tyre’s contact patch on the ground; correct pressure allows flex – the tyre ‘moulding’ itself to the terrain and causing traction. Buy a good quality, low pressure tyre gauge.

Now we know the systems, let’s go for a ride?

Not quite.

LUV’s and quads are the vehicles everyone uses but nobody loves, so get in the habit of daily checks before heading out onto the property. A couple of minutes spent in the yard can avert a long walk home or a ride in a rescue helicopter.

Look at the vehicle: is it sitting level? Is the load well positioned and secure? The wheels

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• See the next issue of Rural News for ‘All you need is LUV’, part 3.

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