Rural News 06 December 2016

ANIMAL HEALTH

MACHINERY

NEWS

Funding boost for beef genetics research. PAGE 29

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PAGE 15

PAGE 33

TO ALL FARMERS, FOR ALL FARMERS DECEMBER 6, 2016: ISSUE 620

www.ruralnews.co.nz

Massey back to its roots PETER BURKE peterb@ruralnews.co.nz

MASSEY UNIVERSITY chancellor Chris Kelly is signalling a move to shift the uni back to its roots as first and foremost an agricultural university.

This arises from the decision that from next year its vet and other agricultural courses will have more ‘real ag stuff’ in them in the first year, as opposed to in the second year as now.

“Originally our roots were in ag

and it’s fair to say until a few years ago we diversified when the government funding was about bums on seats. We opened a campus in Albany and another in Wellington,” Kelly told Rural News.

“We introduced fine arts and business courses and all sorts of others, and Massey started losing its name as an ag university; we want to take it... back a bit.”

This does not mean the university will close its non-ag courses, but it will

re-emphasise the importance of agricultural and veterinary courses.

This also fits Kelly’s view that there should be only one agricultural university in New Zealand, and given what’s happening at Lincoln that possibility looms.

“We are a country smaller than Sydney’s [population] yet we have eight universities. We know Waikato University is talking about opening another medical school 100 miles from Auckland and I think that is silly and a waste

of money. The competitive model is normally fine, but I am not sure it is applicable in education.”

Kelly sees a need for strong political leadership to bring about a re-think of the competitive model in universities.

Growth in student numbers is in Auckland only, he says, so universities spending a lot on marketing to compete for students brings no particular gain.

• A more practical approach see page 4

Bent, but not broken Highfield Station owner Michael Northcote, near Waiau in North Canterbury, at the door of the station’s historic woolshed, which was redstickered after last month’s 7.8 magnitude earthquake in the region.

Northcote says he will do all he can to save the Historic Places Trust category one-classified landmark. The large 140-year-old wooden building, brickred in colour, is visible from the Inland Kaikoura Road – a few kilometres north of Waiau – and is listed as a local tourist attraction. The November 14 quake has left the shed off its piles, with the exterior walls bowed, floors sloping in various directions and a lean-to roof along the southern side collapsed.

More on page 9 and more earthquake coverage inside. PHOTO NIGEL MALTHUS

HUGE COST TO NZ AG NEW ZEALAND’S agricultural sector is bearing the brunt of non-tariff measures (NTM) that are costing NZ exporters almost $US6 billion a year in the Asia Pacific region, says a recent report.

Compiled by economic researchers NZIER, the report says NTMs are policies – aside from border tariffs – that governments impose to limit imports or increase their price. Common examples are quotas, technical standards and animal welfare measures.

NZIER deputy chief executive John Ballingall says some are for legitimate public policy purposes, such as protecting consumers from dangerous products or protecting animal or plant safety.

“But many are blatantly protectionist in nature – designed to shield domestic industries from foreign competition,” he says.

“The dairy sector alone faces NTMs within Apec of $US2.7 billion per year.

“Our beef and horticultural sectors suffer too – facing extra costs of $US770 million and $US310m respectively each year.”

The total impact on NZ is $US5.9b ($8.4b) a year. NZIER says reducing the costs of NTMs will improve competitiveness and living standards, but a concerted effort is required “There is growing recognition amongst firms, policymakers and researchers that much more needs to be done by governments TO PAGE 3

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RURAL NEWS // DECEMBER 6, 2016

NEWS 3 ISSUE 620

ON-FARM SAFETY IMPROVES

www.ruralnews.co.nz

NEWS �������������������������������������� 1-17 MARKETS ���������������������������18-19 AGRIBUSINESS ��������������� 20-21 HOUND, EDNA ���������������������� 22 CONTACTS ����������������������������� 22 OPINION ����������������������������22-24 MANAGEMENT �������������� 25-28 ANIMAL HEALTH ����������� 29-30 MACHINERY AND PRODUCTS ����������������������� 31-34 RURAL TRADER �������������������� 35

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 31.03.2016

Better lambing than predicted SHEEP FARMERS have had better lambing than expected this year, with percentages up, though the lamb crop was smaller overall due to fewer ewes mated.

The latest Beef + Lamb New Zealand figures reveal a 2.1% rise in average lambing percentages, with 123 lambs born for every 100 ewes. It says ewes were in good condition, there was enough spring feed and more lambs were born from hoggets.

However, BLNZ economic service chief economist Andrew Burtt estimates some 23.7 million lambs were tailed this spring, from a breeding ewe flock that was down 3.1% on last year.

“The smaller ewe flock occurred with the shift towards cattle production and the impact of facial eczema in North Island regions,” Burtt says. “Farmers read the climatic signals and made decisions early and the lamb crop result reinforces the impact of those management decisions.”

North Island lamb numbers were not only affected by the impact of facial eczema on breeding ewe condition and numbers, but also by wet conditions that hindered lamb growth rates, Burtt adds.

However, lamb numbers in the South Island were slightly ahead of last season because of good weather, improved lamb thrift and a lift in ewe

lambing percentages. These factors combined to offset a decrease in breeding ewe numbers.

Burtt says countrywide there was a 1.3% drop – or 0.3 million fewer lambs – than last year.

In the North Island, 11.3m lambs were tailed – down 0.3m on last year, but this was up on 2013’s tally.

Meanwhile, 12.m lambs were tailed in the South Island.

Burtt says 19.4m lambs will be available for export in the 2016-17 season, down an estimated 2.7% on last season’s 19.9m.

“Lamb export receipts for 2016-17 are estimated at $2.5 billion, slightly down on the previous season.”

FOR THE first time in eight years, farms are not the country’s riskiest workplaces.

Statistics NZ says in a new provisional report that cleaners, rubbish collectors, couriers and labourers now claim for the most work-related injuries.

For every 1000 fulltime workers in these categories, 238 claims were made to the Accident Compensation Corporation in 2015.

Agriculture, forestry and fisheries workers made 233 claims per 1000 workers, down from 242 claims per 1000 the year before.

Agricultural workers’s claims have fallen since WorksafeNZ joined farmers and rural communities in February 2015 in an education campaign aimed at tackling the high number of deaths and serious injuries on farms.

This included the dedicated Safer Farms website www.saferfarms.org. nz set up by WorksafeNZ. Since 2002, farmers and fishery workers and people in ‘elementary’ occupations including cleaners, rubbish collectors and labourers, have consistently had the two highest claim rates.

Males accounted for 92% of all fatal work-related injury claims.

About one in four workers of these workers made a work-related injury claim in 2015.

COSTLY NON-TARIFF TRADE BARRIERS FROM PAGE 1

to address the high costs of NTMs,” Ballingall says.

He believes the priority should be on those NTMs that are most tradedistorting and inefficient, but says

that even the most well-intentioned or legitimate NTMs can be costly.

“Even a small decrease in the costs of NTMs in the Apec region would improve Apec businesses’ competitiveness and lower the costs

of doing business. Ultimately this will benefit consumers via lower prices for traded goods and services.

“We hope that by shining a light on the costs of NTMs our research can spark further discussions about

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RURAL NEWS // DECEMBER 6, 2016

4 NEWS

Massey to go more practical PETER BURKE petereb@ruralnews.co.nz

VETERINARY AND agriculture degree students who start at Massey University from 2019 will find practical aspects of farming and vet work in their courses right from the start.

And the university is moving to a primary concern with agriculture.

Chancellor Chris Kelly told Rural News that practical studies will start in students’ first year of vet and ag degree courses.

The move on the vet degree course responds

to the vet industry saying that though new vets are well qualified academically they lack practical skills, especially for rural practice.

The vet course will change a lot, says Kelly.

Until now first year studies have been general and academic, emphasising

chemistry, physics and biology. But in the revised course students will start learning the real ag and vet stuff in the first year.

Another matter has caused Massey to rethink the vet course: of the 400 students who routinely start the five-year vet course, only 100 will

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graduate -- a ‘weaning’ process that will continue.

Kelly says 75-85% of vet students are women and in the first year when there is a high ‘cull’ it’s the women who keep on because the work is then mainly academic.

“That’s because women mature earlier than men, work hard and pass. Whereas men find out about booze and all sorts of crazy things during their first year.

“When I went through vet school, many years ago, it was dominated by men; today it’s dominated by woman. That’s fine, but the problem is one woman graduate is equivalent to two-fifths of a full-time equivalent vet throughout her life because she gets married and has a family, which is

normal. So, though we’re graduating a lot of vets, we’re getting a high fallout rate later on.”

It appears the course changes are designed to get a better male/female balance in vets graduating and to set the expectations of students early in the course. Meaning students will be faced with the reality that New Zealand needs large-animal vets rather than those wanting only to work with small animals in the cities.

“As kids we all had pets and we thought it would be great saving people’s cats and dogs.

But as students go through the course they realise there are big opportunities in large animals as well,” Kelly says.

“Some struggle with some of the tasks onfarm

Massey University chancellor Chris Kelly.

because there is a hard, physical component in a large-animal practice.

“Thus some vets aren’t going out into the country; they’re staying in the city [leading to] a shortage of vets in the country.”

Kelly says the duration of vet or other ag degree courses won’t change because of the change of content to more practicality.

DAIRY DEBT STILL A RISK cant variation in cost structures across farms. Even with the improvement in dairy payouts, some farms may struggle to achieve profitability, especially given that 20% of farms account for about 50% of overall dairy debt.”

Debt levels have been stretched further as dairy farms have borrowed working capital to absorb operating losses over the past two seasons. High debt levels leave the sector vulnerable to any weakness in dairy prices.

With recent price improvements, credit losses are likely to be lower than suggested by the more severe scenarios in stress tests of banks’ dairy exposures last year, Wheeler says. Nevertheless, problem loans are likely to increase further, as losses take time to materialise.

Therefore, he says, banks should ensure provisions and other buffers are appropriate for expected losses.

DAIRY REMAINS a key risk to New Zealand’s financial stability says the Reserve Bank.

The bank is reviewing the capital commercial banks must hold as sufficient provision for the dairy industry’s debt.

And it is concerned about housing market vulnerability and bank funding pressures.

Auction prices for whole milk powder have increased 69% since July and Fonterra has raised the farmgate forecast to $6/kgMS, which is likely to return the average dairy farm to profitability, says Reserve Bank governor Graeme Wheeler in his six monthly financial stability report.

“Nevertheless, parts of the dairy sector remain under significant pressure,” he adds.

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RURAL NEWS // DECEMBER 6, 2016

NEWS 5

Payout hikes signal rebound

TATUA TOPS FORECASTS AT $6.50

SUDESH KISSUN

Strategy delivers CANTERBURY DAIRY processor Synlait says its strategy has delivered a total shareholder return of 55% since a public float three years ago.

Synlait shareholders were told last week that a record profit of $34.4 million in the 2016 financial year reflects a successful value added strategy.

Addressing the company’s annual meeting in Christchurch, chairman Graeme Milne told how the company had grown rapidly and profitably since listing in July 2013.

“We remain a growth company and will continue investing our profit in the business to pursue profitable growth opportunities.”

Synlait’s new growth phase began in September alongside a pro-rata rights offer completed in October, raising $97.6m in new equity. It now plans to spend $300m over three years to add more infant formula, consumer packaging and spray drying capacity, value added cream capability and infrastructure.

“The equity we raised in October will be used to pay debt and contribute towards this new capital expansion,” says Milne.

Synlait managing director John Penno attributed the record profit to an almost fourfold year-on-year increase in canned infant formula volumes from 4300 tonnes to 16,000t.

“Our ingredients business performed well in FY16, but our canned infant formula business played a major role and we expect it will continue to do so as our most established value added part of our company,” says Penno.

THE BIG dairy processors in New Zealand are lifting payout forecasts for 2015-16 in a further sign of a rebound in global milk prices.

Canterbury processor Synlait has followed Fonterra and lifted its forecast to $6/kgMS – up $1 on its previous forecast. The company had planned to update its forecast in early February 2017 but says now is better for its 200 suppliers.

Chairman Graeme Milne says it has kept a close eye on the global dairy market and cannot ignore the trending increase in dairy prices.

Lower European production in the last three months shows dairy farmers there are responding to lower milk prices, Milne says.

“Production is also reduc-

the gradual rebalancing of global supply and demand.

“We’ve seen falling production in the major exporting regions, particularly Europe and Australia, and an unprecedented decline in NZ milk supply due to wetterthan-normal spring conditions in most regions. On balance, demand continues to be firm, so there has been a steady improvement in global dairy commodity prices and this is reflected in the improved forecast.”

NZ’s second-biggest dairy co-op Westland Milk Products has also raised its forecast and will pay its suppliers $5.50-$5.90/kgMS; net return to shareholders (after retained earnings) will be $5.30$5.70/kgMS. Westland chief executive Toni

Brendish says the lift in forecast payout is made possible by two factors.

“Firstly, global dairy market prices have increased and Westland has taken advantage of that.

“Secondly, we have improved production efficiency and quality assurance, resulting in savings that can be passed to shareholders.”

Brendish says the global dairy market remains volatile and industry commentators are not agreed on where final payout figures are likely to settle.

“The improvements in the market give us sufficient confidence to be cautiously optimistic and raise our payout prediction.”

Westland is also raising its advance payout to shareholders to $4/kgMS, a lift of 20c.

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WAIKATO INDEPENDENT processor Tatua Milk Products has raised its 2016-17 forecast payout to $6.50/kgMS. The co-op told shareholders in July to expect a payout between $6 and $6.50.

Chief executive Paul McGilvary told Rural News the board has just updated its forecast payout and informed farmer shareholders.

McGilvary says the upturn in global dairy prices is mainly due to strained supply out of New Zealand and Australia; he says demand for cream-based products also remains strong.

“There are also lower volumes available on GDT and this is also causing prices to rise.”

Tatua will again review its forecast payout in February next year.

ing here in NZ, but Europe has a much greater impact on overall dairy prices and we’ve seen this in action with dairy prices over the past three months.

“China’s demand for dairy products is another key driver for global dairy prices. While their demand has risen recently, it’s unclear if and for how long it might continue.”

Fonterra last month raised its forecast price by 75c to $6/kgMS; combined with the forecast earnings per share range for the 2017 financial year of 50-60 cents, the total payout available to farmers in the current season is forecast to be $6.50-$6.60 before retentions.

Chairman John Wilson says the increase reflects improvements in pricing since September, following

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RURAL NEWS // DECEMBER 6, 2016

6 NEWS - 2016 EARTHQUAKE

Dealing with quakes, animals, media and flakes PAM TIPA pamelat@ruralnews.co.nz

AN 80HA slip in your land, fences down, aftershocks and stock in desperate need of attention would seem enough to deal with after a 7.8 earthquake ruptures your farm.

But prominent Kaikoura farmer Derrick Millton was also in the spotlight of world media and had animal rights activists using his misfortune to push their views when three cows and a calf were photographed on ‘cow island’.

The aerial photo showed the cattle stranded on an ‘island’ of grass after the land on all sides slipped away – part of a 1.5km rupture. The photo, taken by a New Zealand media group, caught the eyes of news media worldwide, their viewers and readers asking would happen to the animals.

With all that, and other emergencies on his farm, Millton had the presence of mind to turn it into a good news story about how NZ farmers care for their animals. His regard for

Derrick Millton’s stranded cows hit the spotlight with the world’s media.

Inset: Derrick Millton.

the cows and calf and their welfare shone through in his media responses.

“We were so busy... I couldn’t actually see any media, hadn’t read a paper or seen TV…. I kept thinking, ‘I don’t need to know what’s going on out there’, but these people kept arriving at my door or phoning for another story.”

It was good the media photo alerted him to the cows, he says, but he would have got to them within a couple of hours anyway.

Millton recognised he couldn’t stem the tide of media interest. PETA and the RSPCA offered to come and help, but by then the job was done. ABC and CNN were calling and people he knew in England were inquiring.

He realised it was worth putting time into media response to ensure the stories reflected NZ’s high standard of animal welfare. As chairman of the Wool Research Organisation of NZ, Millton understands the significance.

But the Kaikoura district councillor says he had to deal with onfarm issues

first, and people in the area had suffered massive losses.

The cows were “well and truly back around the water trough before he could properly tell the story,” Millton told Rural News. “I was trying to settle PETA and the animal rights people.

Rather than just be blasé about it, we had to give a reasonably solid answer as to what our animal health obligations were and how we carried them out.”

He was surprised himself where the cows ended up – in the middle of nowhere. Eighty hectares moved, it wasn’t a small slip. It was 1.5km across and fell about 300m vertically, dropping from about 335m to about 45m altitude.

The slip was “unbelievable,” he says. “It wasn’t like a wet slip, it was a dry slip that moved 100 yards (91m) to the east. All the ground moved; it still has all the grass but it is on the flat rather than on the hill and what is left on the hill is a white, stark-looking face.”

It looks like a glacier he says. He reckons the quake released so much energy they may be free from anything major because it was such a big uplift

of soil and beach.

All the animals were a bit skittery afterwards because they had suffered, but the grass was still upright so, provided they could avoid the cracks, they were all right.

“They are right now, but we all were a bit on edge, weren’t we? So I don’t blame the poor old cows.”

The ‘cow island’ animals were controlled and happy to be rescued, Millton says. They were compliant and ready to be helped. “They followed us along.” It took a lot of time for his sons Ben and William, who manage the farm business, and others, to get them down.

They were Hereford cows with calves and the next day were due to come in for mating.

Millton says it was a widespread earthquake and goes a long way.

“Some people have been really affected by it; it’s not over yet perhaps.

But they’re all rural people and they are very innovative in things like this.”

He hopes the major stresses are over.

“We just have to do the work to get it back where it was. I think people are quite settled down now.”

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RURAL NEWS // DECEMBER 6, 2016

NEWS - 2016 EARTHQUAKE 7

Stock water a priority for quake-hit farmers NIGEL MALTHUS

GETTING STOCK water supplies restored was among the priorities for Leader Valley farmer Andrew Harris in the aftermath of the November 14 earthquakes.

Harris runs sheep, beef, deer and some dairy grazing on his 980ha One Tree Hill farm inland from Parnassus on the Leader River. The valley is the furthest north that non-essential traffic can reach before the roadblocks on SH1 to Kaikoura.

Harris says his homestead is now whitestickered and usable – joking that it suffered “only” three toppled chimneys. But one of those fell onto a bed which was luckily unoccupied. He and wife Liz were in Christchurch when the quake hit, just after midnight on November 14.

Harris says they drove back that morning.

Harris grins and says “we got

Leader Valley farmer Andrew Harris with a haybarn destroyed by the November 14 quake.

Its eight supporting timber poles all snapped cleanly off at ground level.

in when we probably shouldn’t have”. They were let through by a crew working on the cracked and slumped tarseal of the Leader Road.

“We knew them,” says Harris.

On the farm they found the worst damage was to their haybarns, water supplies and grain silos.

Luckily their main access, by way of a private single lane bridge over the river, had survived.

MORE

At the top of the farm were two concrete water tanks which had hardly moved, but had strangely rotated on their bases.

“They’ve stayed where they were meant to be, but they’ve twisted about 10 degrees and broken all their pipes off. So we had no water for the stock.”

One of the tanks is now back in use with new pipes, but the lid of the other has fallen in and it has

GOVT SUPPORT PRIMARY INDUSTRIES Minister Nathan Guy has announced cash support for quake-hit primary producers in the upper South Island.

“The earthquakes have had a major impact on farmers, fishers, growers and the wine industry. The damage is widespread and severe and will need the help of the Government to recover,” says Guy. “This is only a first step and we will be working with local communities to help people recover and get back on their feet.”

At least $5 million will be paid, including: ■■ $4m for mayoral disaster rural relief funds (Hurunui, Kaikoura and Marlborough) to help with non-insurable assets such as tracks, on-farm bridges and water infrastructure ■■ $500,000 to support rural recovery coordinators in the Hurunui, Kaikoura and Marlborough districts ■■ $500,000 extra funding for the Rural Support Trust ■■ $200,000 per month to mobilise and support skilled primary industry students and workers for farm recovery work ■■ Rural assistance payments (RAPs) from Work and Income NZ (emergency payments for farmers in real hardship).

“Overall this is a real blow to North Canterbury given this area has suffered drought for nearly three years. However, there is a Government response underway and the community is pulling together to get through,” Guy says.

been replaced by a new plastic tank. The tanks are fed from the council’s reticulated system which is back in operation, but Harris is still finding damage to the reticulation to the stock troughs.

On the flat, one haybarn has completely collapsed, the main structure of eight wooden poles having broken off so cleanly at ground level that he initially thought, incorrectly, that they may have been rotten.

Nearby, a grain silo which had contained about 20 tonnes of barley has torn itself from the concrete footings it was chained to.

Beside it another which contained only about 5 tonnes is still upright but unsafe, with its steel support framework wracked and broken.

Harris says some parts of the farm appear untouched, but a fault line now runs across towards the northern boundary and away into the neighbouring Mendip Hills Station.

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RURAL NEWS // DECEMBER 6, 2016

8 NEWS - 2016 EARTHQUAKE

Scargill feels aftershocks NIGEL MALTHUS

SCARGILL RESIDENT Dave Blackler is seriously considering adding some kind of white fluffy material to the eaves of his quakeshattered house, and a white pompom on top, so it looks like it’s wearing a santa hat for Christmas.

The small rural community of Scargill, a few kilometres inland from Greta Valley on SH1,

escaped widespread damage in the first November 14 quake, but then bore the brunt of a big and close 5.7 aftershock eight days later.

The local hall, made of concrete blocks, now lies shattered and cordoned off.

A couple of kilometres down the road towards Waikari, Blackler’s house has unintentionally become the brightest landmark around, with two large bright red

tarpaulins replacing its tile roof.

Blackler, who works in Christchurch for Fletcher Building, is full of praise for the workmates who rallied to help remove the loose tiles and tie down the tarps.

With a sideline of engineering, including welded steel sculpture, Blackler has two large hobby workshops on the property, now jumbles of tools and machinery.

Getting them back in order will

be a huge job he has yet to tackle.

He had been planning to make childrens’ toys for Christmas, but says his plans have been “put back a bit”.

Meanwhile, he is sleeping in a caravan parked in the drive. A week after the most damaging quake, the aftershocks are continuing and he points to two more windows in the house which shattered overnight.

GILTRAPS HELP OUT FARMERS MARK DANIEL markd@ruralnews.co.nz

GILTRAP ENGINEERING is pitching in to help quakehit Canterbury farmers.

When the quakes struck the team sat down to work out how best it could help farmers back to some normality.

“Our heart goes out to the farmers of the region,” managing director Craig Mulgrew told Rural News. “We can only imagine the anguish they are going through.

With that in mind we wanted to do something to help.”

Realising that much of the work over the coming months will be moving debris, shifting materials and reinstating roads and tracks, Giltraps reckoned on helping out with plant and machinery.

Working with dealers in North Canterbury and Gordon Handy Ltd in Kaikoura, Giltrap will offer farmers the loan of two heavy-duty, construction-type dump trailers. Each will be hauled by a tractor from each of the dealers.

The trailers will be despatched mid-December, and they won’t go empty: Giltrap is asking for donations of goods from individuals or companies -- fencing materials, tools or maybe a few boxes of Waikato brew to bring a smile to troubled faces.

To contribute, contact Craig Mulgrew or Eric Crosby at Giltrap Engineering, tel. 07 873 4199 or e-mail sales@giltrapag.co.nz

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RURAL NEWS // DECEMBER 6, 2016

NEWS - 2016 EARTHQUAKE 9

Historic woolshed takes a battering Highfield Station owner Michael Northcote with the remains of his concrete block workshop levelled by the 7.8-magnitude quake.

NIGEL MALTHUS

THE OWNER of the historic Highfield Woolshed near Waiau says he will do all he can to save the Historic Places Trust category one-classified landmark.

The large 140-year-old wooden building, brick-red in colour, is visible from the Inland Kaikoura Road, a few kilometres north of Waiau, and is listed as a local tourist attraction.

The November 14 earthquake has left it red-stickered -- off its piles – with exterior walls bowed, the floors sloping in various directions and a lean-to roof along the southern side collapsed.

“It was about to go on an Historic Places covenant so they could help us maintain it. We were actually going to re-do some of the piles prior to last week,” owner Michael Northcote told Rural News.

“It’s quite a landmark in Northcote says the shed had been in near-daily use, shearing about 6000 sheep a year.

Northcote’s brother Hugh runs the Whaleback station further up the Inland Kaikoura Road near Mt Lyford. Both farms used to be part of

one large property which is why the 24-stand Highfield woolshed is so large. All the sheep from the whole station used to be driven down to Waiau.

“Back in the day when the property – the original Highfield – went from here to the Conway River they could have shorn 60,000+ sheep a year,” says Northcote.

The woolshed has still fared better

than a 1940s, unreinforced concrete block workshop about 40m away, which collapsed entirely onto a tractor and other machinery.

It is now a pile of rubble after Northcote and several willing helpers salvaged what they could – tools, a motorbike and “an old farm car” that suffered little more than a broken windscreen.

“The biggest problem is that I’m

trying to run a farm now without a functioning woolshed, going into the busy season with shearing and crutching and that,” Northcote says.

“And a workshop... you probably take it for granted when you have it. Where do we do a bit of welding, where do we do any engineering, where do we keep our tools?”

While power is on to the property, Northcote has lost the overhead lines that used to bring power to the working areas, meaning he cannot do various jobs he once took for granted, such as running a compressor to pump up a tyre.

Meanwhile, the homestead is white-stickered although the contents were “absolutely trashed” in the quake.

Water supplies for the house and stock troughs is another huge problem.

The property is usually supplied by the local reticulated water scheme, now out of action with an unknown number of breaks to the pipes.

Northcote says because of the drought the property has no natural ponds or springs so is now relying on tankers to top up reservoirs.

But he has nothing but praise for the “fantastic” way the Hurunui District Council, Civil Defence and others responded to the quake.

Tankers from Hawarden and Sefton had come to help local tankers deliver water.

“It’s been a week now and everyone’s still right on the case, ringing up... are we alright? Are we getting stock water? And the answer is ‘yes, we are’. So, I can’t fault that; it’s been brilliant.”

Northcote says he has turned away about 100 people offering to help clean up.

He was alone with his wife Solveig on the night of the quake, but adult sons James and Tom, who both experienced the Christchurch quakes while at boarding school, and now work in Otago and Southland, have returned to help.

Meanwhile, he is trying to run the sheep, beef and deer farm as usual. A stock auction scheduled for November 21 went ahead as planned despite the loss of the woolshed and yards. @rural_news facebook.com/ruralnews

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RURAL NEWS // DECEMBER 6, 2016

10 NEWS

Teachers enjoy firsthand look at agri-sector PLEASE DO it again next year.

So said secondary school teachers from the greater Wellington region who got a first-hand look at career opportunities in the agri sector for young people, during a tour organised annually by DairyNZ and Rural News Group.

This, the fourth tour, attracted 30 teachers and careers advisors in science, geography, digital, chemistry and economics, from schools in Wellington, Hutt Valley, Wairarapa, Manawatu and Horowhenua.

They spent the day in Wairarapa, visiting Massey University’s Riverside research farm, seeing a trial of rearing lambs on lucerne.

Professor Paul Kenyon, head of Massey’s Institute of Veterinary, Animal and Biomedical Sciences, explained Massey’s agricultural courses

Susan Stokes of DairyNZ and Arthur Graves, principal at Taratahi Agricultural College.

and the careers these can lead to.

And a lecturer, Dr Rene Corner-Thomas, outlined her career progression. She was one of eight young graduates who told the teachers why they chose careers in agriculture.

Also speaking were a rural banker, a fertiliser rep and

an extension manager. The teachers found this a highlight – hearing of the range of careers and seeing the passion and obvious success of these young people.

Many were surprised at the high salaries paid to many ag graduates in their first jobs.

And they were impressed that

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many graduates were offered jobs even before they left university.

The group also visited Taratahi Agricultural Training Centre and Urlar Wines, near Masterton.

On the bus to give commentary about the wider agri sector and careers were Massey University chancellor Chris Kelly and agribusiness consultant Lynette Wharfe.

Kelly says he doubts many secondary school teachers know of the wide range of career options in the agri sector. Many don’t know about the high-tech nature of the sector and the highly paid jobs on offer.

Kelly says teachers’ knowledge is improving, but off a very low base. @rural_news

SUSAN STOKES, from DairyNZ, who helped organise the TOUR, says it was highly successful and the feedback from teachers was excellent.

They liked the Teachers tuck into green kiwifruit supplied by sponsor Zespri. balance of agriculture and horticulture.

Many commented on the wealth Chanel College, Masterton, of knowledge they had gained, says the trip informed her about which they could pass on to their career pathways in agriculture, students. especially the huge number Stokes says teachers have available for boys. She was already asked to go on next impressed by the young woman year’s trip ag graduates who talked about Co-organiser, Peter Burke their roles and passion for agri. from Rural News Group (RNG), Tia Greenstreet, from noted the teachers’ interest in Wellington College, says she a special publication, by RNG, well understands the agri sector, on agriculture and horticulture but noted the graduates’ advice and the industries’ careers. The on relational, networking and teachers requested extra copies communication skills. And for their students. she noted that agri graduates Burke says getting teachers acquire good transferable skills into the field to seeing the oppor- for other career options. tunities first-hand clearly motiSponsoring the tour were vates them to steer students ANZ Bank, Zespri, DairyNZ, towards agri-related careers.

Massey University, Taratahi and Jude Murray, a teacher at Rural News Group.

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RURAL NEWS // DECEMBER 6, 2016

NEWS 11

‘For sale’ sign on 10 more farms STATE-OWNED FARMER Landcorp is quitting 10 more farms totalling about 11,650ha.

Two are offered for sale outright, and eight are offered to iwi for first right of refusal.

The farms are mostly sheep and beef units and should attract an enthusiastic response, says PGG Wrightson Real Estate general manager Peter Newbold.

“The regions where these properties are situated are short of farms for sale of this quality and size. As the country’s largest farmer, Landcorp has an excellent reputation and these farms present favourably.”

is under financial stress.

Six of the sheep, beef and deer farms were in the South Island and three in the North, totalling just over 14,000ha. Ngai Tahu was expected to take the bulk of the southern farms.

When the September sales were announced, Landcorp chief executive Steven Carden said there was no financial duress in the decision.

In the 2015-16 year, the company recorded a net profit after tax of $11.5 million – mostly $7.4m profit on land sales. It reported a net operating loss of $9.4m on revenue of $209m and for the second year in a row did

selling Landcorp despite describing it as a “poor investment” during a DairyNZ farmers’ forum at Mystery Creek in May.

“It’s a low-returning asset, so you have $1 billion tied up in that organisation and it pays taxpayers little, in

some years nothing, so it’s a poor investment.

However, we’re committed to keeping it.”

Landcorp chief executive Steven Carden.

Newbold expects the farms to attract solid offers and sell quickly.

The properties include Copper Road Farm (1483ha), a sheep and beef breeding farm 88km southwest of Dunedin; and Caroline Terrace (120ha), a cattle grazing block with development potential on Cape Foulwind Farm, near Westport. Both are now on the market.

Others are expected to be offered for sale in late January to early February depending on iwi takeup of the farms offered to them. Those farms have not been named.

In September Landcorp said it would sell nine of its 140 farms in “reconfiguring its portfolio”. The company denies the sales show it

not pay a dividend to the Government.

Carden says the farm sales are part of a threepronged strategy: to exit deals that are not working, such as the sharemilking contract with Shanghai Pengxin; to developing the Pamu brand with products like sheep milk; and to free up capital for investment.

“It’s a question of reconfiguring our portfolio,” Carden said at the time. “Over the last 30 years Landcorp has bought and sold 140 farms.”

Debate has raged about the benefits of the Government owning Landcorp, some calling it to quit its investment in the business.

But Finance Minister Bill English rules out

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RURAL NEWS // DECEMBER 6, 2016

12 NEWS

Fonterra seeks ‘cow to cup’ traceability “Often, components extracted from milk during the making of one product will be added to milk being turned into another product.” – Tim Kirk

SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA IS on track to become the first global dairy processor to have farm-to-fork electronic traceability.

By 2020 the co-op’s 11,000 supplier farms around the world would be part of the system; any product concerns will be traced anywhere on the supply chain within three hours.

The world-class traceability standards will extend to Fonterra’s 140 plants at 50 sites in nine countries, in seven languages and involving 2000 unique food items.

Already, all New Zealand and Australian-sourced products, representing 74% of total global production, can be electronically traced through the supply chain from manufacturing sites to customers.

While the co-op is not divulging how much the traceability system will cost, Fonterra’s general manager trust in source, Tim Kirk, says the cost pales in comparison to “what we will deliver”.

“It’s a substantial investment by Fonterra,” Kirk told Rural News.

“What we are aiming for now

Fonterra says it will become the first global dairy processor to have farm-tofork electronic traceability.

is world-class electronic product traceability, so if we have any concerns about any product we can electronically trace it anywhere in our supply chain within three hours,” says Kirk.

“We are well advanced. By the end of this year 40% of our plants globally will have traceability data electronically connected, a further 50% of the plants will be included by the end of 2017, and the remaining 10% will be completed in 2018-19.”

Indonesia and Malaysia are the

next two countries in line to join the scheme.

Fonterra chief operating officer global consumer and foodservice Jacqueline Chow says the scheme will make it possible “to electronically trace the goodness in every drop of milk our farmers produce and the products we make from it, so traceability will extend back to milk off farms.

“Today as more products cross borders and consumers put more store in the value of good nutrition, there

is a growing demand for information about what goes into our food and for reassurance that it is produced with great care. Traceability provides consumers with reassurance.”

She says Fonterra has always been able to trace products, but through systems using a mix of electronic information, manual logs and spreadsheets.

Kirk says the versatility of milk and Fonterra’s scale as the world’s largest dairy processor and exporter has required a broad scope for full electronic product traceability.

“Often, components extracted from milk during the making of one product

will be added to milk being turned into another product. So as well as tracing finished products, our total product traceability has to cover all the various component products we produce and either sell or use.”

He says that with Fonterra collecting at least 22 billion litres of milk from 10,500 farmers and operating 34 sites in NZ alone, the scale of the job has been huge.

“In ingredients alone, we produce almost 1400 products and we have significant backroom manufacturing and supply chain process technology which is all part of this work.”

Fonterra has adopted the GS1 global traceability standard which defines a minimum set of requirements in business processes to achieve full electronic supply chain traceability.

Also being adopted are product authentication, tamper-evident packaging and anti-counterfeiting technology.

“For example we use tamperevident seals on packaging of all Anmum products in NZ and Indonesia, giving consumers a visible indication of product tampering that could occur post-packing.”

RURAL NEWS // DECEMBER 6, 2016

NEWS 13 Get snapping and win!

BUDDING PHOTOGRAPHERS take note, our annual photo competition is on again.

Last year the Rural News Group ‘Show Us Your Rural Summer’ competition attracted a heap of quality photographs: sweeping rural landscapes, kids at play, animals, working farm shots – the whole gambit of summer in the country.

Entries are being accepted now, with entrants competing for the $500 cash grand prize, hardback NZ Geographic photography books and more prizes, but most importantly, for the fun (and glory) of seeing their creative endeavours published online and possibly in the pages of Rural News.

Entries are open until mid-January.

Enter at: www.ruralnews.co.nz/summer

Last year’s winner of the Rural News Group ‘Show US Your Summer’ photo competition was Megan Heale with her image ‘Taking a Stroll’.

RECORD-BREAKING KIWIFRUIT SEASON COMES TO END PAM TIPA pamelat@ruralnews.co.nz

THE KIWIFRUIT season has ended with a record-breaking year, with new variety Zespri SunGold up 68% from last year to 46 million trays as vines come into full production.

The last of 67 refrigerated ships chartered for the season left the Port of Tauranga in mid-November.

Zespri chief operating officer Simon Limmer says every season brings its challenges and people have worked incredibly hard across the industry to achieve another strong result.

“The industry investment in infrastructure has meant that the increased SunGold volumes have been processed well this season,” says Limmer.

“We’re on track to more than double sales revenue from nearly $2 billion last season to $4.5b by 2025.

“Zespri’s in-market teams are driving sales for the last few weeks of the NZ sales season and the first sales of our northern hemisphere-grown SunGold are underway in Europe, with product on the water to Asia.”

Zespri sources premium-quality kiwifruit from northern hemisphere orchards to supply the market for the few months of the year when NZ-grown kiwifruit is not available.

The forecast volumes for the 2016 NZ season are 80 million trays of Green, 46m trays of SunGold and 3.8m trays of Organic Green. Going into the Zespri global supply season, the forecast volumes are 10.5m trays of Zespri Green and 6m trays of gold (SunGold and Gold) from Zespri’s northern hemisphere supplying orchards.

MORE SUNGOLD ZESPRI WILL release another 400ha of its gold kiwifruit variety SunGold next year.

This follows the Zespri board releasing an initial 400ha of SunGold licence in March and signalling that, dependant on the product’s performance and global demand, 400ha more SunGold licence would also be released each year in 2017, 2018 and 2019.

The board also announced last week that another 400ha of SunGold licence will be released in 2020.

Zespri chairman Peter McBride says the decision reflects the strong confidence of the markets in SunGold, with sales expected to hit nearly $900m this season.

Market Data Every Week Check out the latest market data at www.ruralnewsgroup.co.nz/markets

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RURAL NEWS // DECEMBER 6, 2016

14 NEWS

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SFF chairman Rob Hewett says it makes sense to complete the transition earlier than the planned date of January 4 next year.

2017 Notice of B+LNZ Director and Independent Board Remuneration Committee Elections and Annual Meeting Remits Beef + Lamb New Zealand Ltd (B+LNZ) give notice that nominations for B+LNZ and B+LNZ’s Independent Board Remuneration Committee (IBRC) elections and written remits are now open.

Under section 42 of the Beef + Lamb New Zealand constitution, two electoral district directors will retire by rotation at the annual meeting. This year, Andrew Morrison (Southern South Island) and George Tatham (Eastern North Island) must retire by rotation, but may stand for re-election.

Both Andrew Morrison and George Tatham have advised that they will be seeking re-election in 2017.

Nominations are being called to fill two Board of Director vacancies, one for each of the following electoral districts: Eastern North Island (ENI) Southern South Island (SSI) This year there is also an election for the Independent Board Remuneration Committee (IBRC). Nominations are now called to fill one vacancy on the IBRC. Bruce Wills an existing member of the IBRC will retire by rotation and has indicated that he will seek re-election.

Written remits for the 2017 Annual Meeting are now being accepted.

Remits that, if passed at B+LNZ’s annual meeting would not be binding on the organisation, require the signatures of 10 farmers who are registered on the B+LNZ electoral roll.

Remits that, if passed at the annual meeting, would be binding on B+LNZ, require the signatures of at least 1,000 registered farmers or five percent of the total number of registered farmers, whichever is the lesser.

All nominations and written remits must be made on the official forms. The official forms and other useful information regarding the elections are available by; • www.electionz.com/blnz2017 • emailing iro@electionz.com • phoning 0800 666 030 All nominations and written remits must be received by the Returning Officer by 5 pm on Friday 16 December 2016.

Board of Directors, Independent Board Remuneration Committee and Annual Meeting Resolutions and Remits Voting for the B+LNZ and IBRC elections and annual meeting resolutions and remits (if any) will all be conducted at the same time.

SFF manager saga finally at an end IN AN ironic twist to the long-running Silver Fern Farms and Shanghai Maling merger saga, the deal will now be done earlier than planned.

Late last month, Silver Fern Farms announced the partnership will be completed before the middle of this month.

SFF chairman Rob Hewett says with everything ready ahead of time, it makes sense to complete the transaction earlier than the original planned date of January 4. ‘’There is little merit in simply waiting. Both boards are keen to get on with the partnership and deliver on the benefits already identified,’’ Hewett said in a statement.

In September, Silver Fern Farms finally received the regulatory approval from the Overseas Investment Office it needed for the joint venture to go ahead – after farmer/

Voting will be conducted by postal and internet voting, with voting papers being posted to all farmers who appear on the B+LNZ electoral roll on Wednesday 8 February 2017.

B+LNZ and IBRC elections will close on election day and postal and electronic voting for company resolution and remits will close on the same date, Friday 24 March 2017 at 2pm.

shares up until completion.

Of the $267m, $57m will reside with the co-op, with the co-op’s 50% shareholding in Silver Fern Farms Ltd, the statement said.

SFF says the investment will be the largest single amount ever invested in New Zealand’s red meat industry, described as a ‘’gamechanging’’ opportunity.

Shanghai Maling, a subsidiary of state-owned food giant Bright Food Group, was the first food-processing company to list on the main board of the Shanghai stock exchange in 1997.

Red meat (pork, beef and lamb) was its major focus, making up between 80-90% of its business.

Its strategy was to develop valueadded products and build brand recognition in China. @rural_news facebook.com/ruralnews

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Farmers can vote in person on company resolutions and remits only, at the Annual Meeting on Thursday 30 March 2017.

To be eligible to vote in the B+LNZ director and IBRC elections and for annual meeting Remits (if any), a livestock farmer must, on 30 June 2016, have owned at least 250 sheep, or 50 beef cattle, or 100 dairy cattle. Voters must farm within the respective electorate to be eligible to vote for the Board of Directors but the IBRC is a national vote open to all livestock farmers on the B+LNZ electoral roll and meeting the minimum livestock threshold.

shareholders initially gave their approval in October last year.

However, a minority group of dissident shareholders, led by ex-pat Englishman and Canterbury runholder John Shrimpton, attempted to stop the joint venture. But a second farmer/shareholder second vote, in August, reaffirmed more than 80% farmer support for the deal.

Hewett says the final date for completion will be confirmed soon.

Shanghai Maling will pay about $267 million in cash for a 50% stake in Silver Fern Farms’ business, to be re-named Silver Fern Farms Ltd. This is above the $261m original price, which – according to the SFF statement – was subject to a net tangible asset adjustment at September 30, 2015, an adjustment for advisory costs and the cost of redeeming any rebate and supplier investment

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To be eligible to vote for the annual meeting resolutions, farmers must be on the B+LNZ electoral roll and are not required to meet the minimum stock numbers stated above.

To check if you are on the electoral roll please contact B+LNZ on 0800 233 352. The electoral roll will close at 5pm on Wednesday 8 February 2017.

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

All queries regarding B+LNZ elections should be directed to the Returning Officer on 0800 666 030.

All queries regarding annual meeting remits should be directed to B+LNZ General Counsel, Mark Dunlop on 0800 233 352.

Warwick Lampp Returning Officer – Beef + Lamb New Zealand Ltd 0800 666 030 PO Box 3138, Christchurch 8140 iro@electionz.com

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RURAL NEWS // DECEMBER 6, 2016

NEWS 15

New Zealand meat companies need to lift their game DAVID ANDERSON

NEW ZEALAND companies need to step up their efforts, in view of the hope for better lamb prices this season evaporating faster than a summer shower, says Peter Walsh, and independent South Island stock broker and principal of Peter Walsh and Associates.

While NZ lamb meat prices rose in September, it was on the back of lower supplies, and analysts are predicting the lift will be temporary due to weak demand in the British market.

Market analysts at AgriHQ report the benchmark price for a leg of lamb in Britain rose to £4.20/kg in September – up from £4.10/kg in August and £3.40/kg in September last year.

However, NZ export returns were hurt by the high Kiwi dollar versus the weak British pound.

In NZ dollar terms, returns were $7.51/kg in September – up from $7.41/kg in August, but well down on $8.04/kg a

year earlier.

NZ lamb numbers are also forecast to decline this season after the number of breeding ewes fell 3.1% last season – the 10th consecutive annual decline. This lower supply bolstered prices at the start of the new season, but that’s expected to ease once the main production period begins, thanks to weak demand in Britain and the high level of the Kiwi dollar and the weakening British pound.

Walsh says this is concerning, especially when Australian lamb producers are faring much better than their NZ counterparts: falling numbers and growing demand are hiking prices in Australia.

Despite the growing demand for lamb in Asian and Middle East markets, there are questions about Australia’s ability to supply: recent Meat and Livestock Australia (MLA) data reveals sheep numbers are falling there.

ANZ predicts Australia will need an extra 22 million sheep by 2040 for it to maintain its share

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of the global market and meet growing protein demand. All up, MLA estimates Australia now has 70 million sheep, and it tips this will grow to 73 million by 2020 if average seasonal conditions prevail.

These lower sheep numbers are being reflected in the slowly climbing prices buyers are paying in Australia. In early October, saleyard numbers were at a threemonth high, but prices remained firm at around Australian 600 cents/carcase weight.

Walsh says at these prices Australian producers are getting about $200/lamb, while NZ farmers get only about $100/lamb.

Meanwhile, in NZ there is talk of a procurement war this season, but the meat companies are downplaying this. During its round of shareholder meetings, Alliance said it is ready for any price battle for livestock, but the company does not expect rival co-op Silver Fern Farms to deliberately provoke a war.

Alliance chair Murray Taggart told shareholders that lamb numbers are down by about two million since the last big processing plant closures and he concedes that the conditions are ripe for a procurement war.

Alliance chief executive David Surveyor admits that a 700,000 fall in lamb numbers this season has the potential for a price war. However, he says while farmers might welcome a price war, he warns there would be consequences for farmers in the washup from any battle for lambs as processor margins are already squeezed.

Silver Fern Farms chair Rob Hewett says his company is not interested in a procurement battle

a market environment,” he says. “Everyone would get to see and compare prices and such a system would set true market value.”

Peter Walsh

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and claims it would be an “irresponsible use of funds”.

However, Peter Walsh questions why the NZ meat sector is faring so badly. He believes farmers will want to see the benefits of the Silver Fern Farms/Shanghai Maling merger in better prices paid to them.

Walsh wonders if the meat industry would benefit from a panindustry auction system like the dairy sector’s Global Dairy Trade (GDT).

“Putting everything up for auction would really show

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RURAL NEWS // DECEMBER 6, 2016

16 NEWS

Wanted: social licence to eradicate and keep out future pests pamelat@ruralnews.co.nz

SOME FORM of genetic technologies will in 10, 20 or 30 years be our primary defence against the inevitable biosecurity incursions that will occur, says Sir Peter Gluckman, the Prime Minister’s chief

science advisor “We will never be able to stop every incursion.

The issue is how “will we get social licence for these new technologies?’ ” he asked the recent Biosecurity 2016 Forum in Auckland “That is the big issue for Australia, New Zea-

land and every society: as these new technologies develop, how will societies decide whether to use them or not?”

If the first use of the internet had been clearly by the World Trade Centre bombers and not for social media, the world would have reacted

against that technology.

If the first use of genetic modification had been by Government agencies to produce a food to reduce the incidence of diabetes in the world there would have been a different response.

“We need to get far better at having good discussions with society, not late in the development of a technology but at the beginning of the development of that technology so we can understand what society will allow to happen at what pace.”

He reminded the forum that margarine was only first allowed to be sold in NZ without a prescription in 1972.

By definition we always live in an experimental society, he says.

Everything human beings do in social or technological innovation has a degree of risk and

unknown.

“There is no such thing as proving absolutely safety; that is scientifically impossible. And therefore different perceptions of relative risk and relative precaution always remain.”

In addition to scientists’ analysis of risk, people also perceive risk at many levels – whether they will benefit, or not benefit.

“Who incurs the risk, who incurs the cost? A whole lot of biases and so forth. There is a third class of risk – political risk, institutional risk and reputational risk.

So in risk management all these things come together.”

Better public conversations are needed. Social science and behavioural science need to come into it. For instance how to get people of different

cultures to understand the significance of biosecurity to our heritage and economy.

“Is what we do on an aeroplane, i.e. making a rather bland announcement about biosecurity, actually the best way of persuading airline passengers to declare what they have in their bags?

“We need to research how we nudge people of different cultures, backgrounds and heritages to think about it. Biosecurity is ultimately a behavioural phenomenon to some extent.”

Gluckman says our primary industries are a set of large monocultures, be it pine trees, kiwifruit, ryegrass and clover, sheep or cows. The more monocultural your agricultural system, the more at risk it is.

A kiwifruit farmer had asked him what his

Sir Peter Gluckman

greatest form of defence was. “Genetic diversity is your best defence against bugs of different kinds,” he says. “It was fortunate and almost an accident that Plant and Food had a number of cultivars present when the Psa epidemic broke out and they found out they had a resistant cultivar which turned out to be of great productivity value.”

Gluckman released a paper in late November on perceptions of risk in science.

INVESTMENT IN NZ’S FUTURE PAM TIPA pamelat@ruralnews.co.nz

THE NEW ZEALAND BRAND has high value and part of that success is our biosecurity systems, says Deborah Roche, MPI deputy director-general

policy and trade.

She says being able to make disease-free claims, along with claims like grass-fed, is an emerging primary sector trend.

“We need to be very vigilant about what can happen on the animal side

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of the ledger of biosecurity,” she says.

“We have a 28% premium on products by being foot and mouth disease free. It is great to be foot and mouth free in NZ, but we can’t afford to rest on that.”

Roche says MPI spends a huge amount of capability and time on preparedness exercises both internally and with partner countries and look at the lessons from other countries. She says it is an investment in NZ’s future.

“When beef exports dropped out of the UK from 1998 to 2005 (due to BSE) they could only send processed products, all other markets shut down,” Roche explained.

“It slowly came up over time to the EU, but with all other trading partners it was a lot slower.”

Primary Industries

Minister Nathan Guy says among biosecurity initiatives in the last few years the government is investing $87 million into the biocontainment facility in Wallaceville.

“We are making a significant investment to protect the animal industries in this country. It is a bit like a big insurance premium to ensure if we ever do have a big exotic animal scare that we can test it and keep our markets open.”

Guy says they now have 12 signatories to the Government Industry Agreements and he was “looking forward to getting dairy across the line”.

He also announced a biosecurity awareness app to be available on passenger flights into New Zealand that has been successfully used with cruise passengers.

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RURAL NEWS // DECEMBER 6, 2016

NEWS 17

Bounty-hunter kids help eliminate pest Great White Butterfly caterpillars.

7 DAYS ON HO ST ULT D A

V NO

DEC

JA N

5 DAYS ON HO ST MPH Y N SEPT OC G T U A

E 7+ DAYS ON HO ST RVA LA

MAR

great white butterfly eradication is probably their most successful such campaign. DOC first thought it would cost $20 million, but it ended up costing about $5m over four years.

One of five key strategies of Biosecurity 2025 is to have “a biosecurity team of 4.7 million -- participation on a grand scale, with every New Zealander and every NZ business becoming part of the team,” Guy says.

It aims to have by 2025 at least 75% of adult NZers understanding biosecurity.

Guy announced the Biosecurity 2025 strategy at the “Protecting to Grow New Zealand” forum in Auckland.

Aside from biosecurity awareness among 4.7 million people, other targets to be reached by 2025 include: ■■ Having 90% of relevant businesses actively managing pest and disease risks ■■ A publicly accessible network that enables electronic access to organism data held by central government agencies, regional councils and Crown research institutes

Identifying 150,000 skilled people who can be quickly drawn on to support responses to biosecurity incursions.

About 60,000 people would now be available.

LIFECYCLE OF A TICK OVER A YEAR*

AP R

Nelson children played a role in eradicating the great white butterfly which can devastate vegetable and dairy forage crops. The butterfly is also a big threat to native species.

Experts at the Biosecurity Forum 2016 in Auckland in late November told Rural News that the butterfly bounty scheme involving kids – initially laughed at – played an important role in eradicating the butterfly. It particularly showed how biosecurity awareness could be engendered in a younger generation.

“A $10 bounty for dead butterflies was a powerful incentive during the spring school holidays in 2013, with children netting 134 of them,” Conservation Minister Maggie Barry says.

It is the first eradication of an unwanted butterfly population in the world, Barry says. Community involvement on a wide scale was crucial.

DOC rangers did 263,000 searches on 29,000 properties in the Nelson region for the butterfly and its eggs, caterpillars and pupae.

“People also kept

■■

B FE

“A $10 bounty for dead butterflies was a powerful incentive during the spring school holidays in 2013, with children netting 134 of them.”

Public and private investment doubling to at least $80 million in science for biosecurity, with at least 50% of the investment focused on critical biosecurity areas

JUN

ERADICATION OF the great white butterfly – a threat to brassicas including forage crops and commercial vegetables – is a worldfirst achievement, says Primary Industries Minister Nathan Guy. The eradication was officially announced on November 23, Guy claiming it as a major illustration of how a new biosecurity strategy – announced the day before – can work using community involvement.

■■

JU LY

pamelat@ruralnews.co.nz

watch for the butterflies, reported finds and allowed repeated searches of their gardens; all in all, without the help of the people of Nelson the butterfly may well have eventually spread across the country,” Guy says.

The great white butterfly, first seen in Nelson in 2010, is a major pest of brassica crops. Caterpillars feed voraciously in groups, rapidly reducing host plants to skeletons.

The director-general of the Department of Conservation, Lou Sanson, says the

Y MA

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RURAL NEWS // DECEMBER 6, 2016

18 MARKETS & TRENDS

S te e r - P2 300kg n/c 5.45 n/c North North Island Island North 16kg 16kg Island M lamb lamb 16kg price price lamb price No No rth rth Island Island No 16.0kg rth 16.0kg Island MM M Lamb 16.0kg Lamb Price Price MMLamb Price

5.15

P 2PCo 2P Co w -w230kg -w 230kg P 2 Co w n/c -n/c 230kg 3.75 n/c 2 Co - 230kg n/c 3.75 4.00

26-Feb

26-Dec

26-Feb

Thousand head Thousand head

10k 10k 1010

$/kg

5$5 .5 5.5 .5 5.5

$55.5 .5

This Ye ar

5yr5yr AveAve

5yrLast Ave Last Year Year

Last Year This This Year Year

$/kg $/kg

5yr5yr AveAve

5yr Last Ave Last Year Year

Last Year This This Year Year

This Year

25-Jan

NZc/kg-5-5

Change

206 206 204

641 641 646 2 -5 Wks 646 3 641 Wks A go

A go

-5

641

646

203 203 198

203

628 628 663

628

663

628

29-O ct

This Y ear

29-Dec

Change Change

%% Returned Returned NI % NIReturned -0-0 NI 80.9 80.9 -0 81.0 81 .0 2Wks 380.9 Wks

82.0 82.0 81.0 Last

77.8 77.8 82.0

%% Returned Returned SI% SIReturned -0-0 SI 71.6 71A .6 -0go

A 71.7 71 71 .7go .6

71Year .5 71 71 .5.7

69.4 69.4 71.5

81.0

82.0

Change

% Returned NI

-0

80.9

$77.5 .0

5yr5yr AveAve

$7 .5

5yr Ave

Last Last Year Year

Last Year This This Year Year5yr Ave This Year

$6 .5

$77.5 .0

South South Island Island South 60kg 60kg stag Island stag price price 60kg stag price 31 7-Aug 14 -Aug 21 -Aug 28 -Aug 4-Sep -Sep 18 -Sep 25ct -Sep 9-Oc 16 t-Oct 23 -Oct 30 -Oct 6-Nov 13 -No 20 -No 27 v Price -No v4-Dec 11 v -Dec 18 -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan 26-AS ug 26-O 26-Dec 26-Feb outh S-Jul outh Island Island S 11 outh 60kg 60kg Island Stag Stag Price 60kg Price Stag

$9 9.5 .5

95 95 90% 90% 85% 85% 95 80% 80%90% 85% 75% 75% 75 75 80% 70% 70% 75% 75 65% 65% 70% 60% 60% 55 55 65% 31-Jul 31-Jul 26-A 26-A ugug

% of export returns % of export returns

$/kg $/kg

$7 .5

$88.5 .0

5yr A ve 77.8

$8 .5 $88.5 .0

7.5 $8 $7.0 .5

5yr5yr AveAve

$7 7.5 .5

5yr Ave

Last Last Year Year 5yr Ave Last Year

$7 .0

This This Year Year Last Year This Year

6.5 $7 .0

6$6 .526-A .526-A .526-A ug 26-O ugug $66.5 26-O ct ct 26-O ct 26-Dec 26-Dec 26-Dec 26-Feb 26-Feb 26-Feb This Year 3131 -Jul 7-Aug -Jul 7-Aug 1414 -Aug 21-Aug 21 -Aug 28-Aug 28 -Aug 31 4-Sep -Aug 4-Sep -Jul 11 7-Aug 11 14 -Sep 18-Sep 18 -Aug 21 -Sep 25-Sep 25 -Aug 28 -Sep 9-Oc -Sep -Aug 9-Oc 16 4-Sep 16 t11 -Oct 23t-Oct 23 -Sep 18 -Oct 30-Oct 30 -Sep 25 -Oct 6-Nov -Oct -Sep 6-Nov 13 9-Oc 13 -No 16 20-No 20 t-Oct -No 23 27 v -No 27 v-Oct -No 30 v4-Dec -No v-Oct 4-Dec 11 v6-Nov 11 v13 -Dec 18-Dec 18 -No 20 -Dec 25-Dec 25 -No 27 -Dec v 1-Jan -Dec -No v1-Jan 4-Dec 8-Jan 11 v8-Jan 15-Dec 15 18 -Jan -Jan -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan $6 .526-A ug 5yr 26-O ct YeYe 26-Dec 26-Feb 5yr Ave Ave Last Ave Last Last Ye This This Ye Ye ar This Ye ar-Jan 31 -Jul 7-Aug 14 -Aug 21 -Aug 28 -Aug 4-Sep 115yr -Sep 18 -Sep 25 -Sep 9-Oc 16tar -Oct 23ar -Oct 30 -Oct 6-Nov 13 -No 20 -No 27 var -No v4-Dec 11 v ar -Dec 18 -Dec 25 -Dec 1-Jan 8-Jan 15 5yr Ave Last Ye ar This Ye ar

LastThis Y ear This Year Year

This Year

S outh S outh Island Island S outh Week Week Island ly ly Lamb Lamb Week Kill Kill ly Lamb Kill

5yr Ave 400 200k

Last Y ear

This Year

10 Oct 25 Nov

10 Nov 25 Jan

2525 Jul Jul

10 Nov

25 Jul 2525 Sep Sep 25 Sep 2525 Nov Nov 25 Nov 2525 Jan Jan 25 J 5yr 5yr Ave Ave 5yr Ave Last Last YeYe arar Last YeThis ar This YeYe arar This Ye a

50k 100

Export Export Market Market Export Dem Dem Market and andDem and k 100 Aug

10 Sep

10 Oct

10 Nov

25 Sep Last Nov 25 Jan Last Last 25 2 Wks 2 Wks Last Last Last 2 Wks Change Change Last Change 5yr 5yr A ve A ve 5yr Ave Ye arA go This Week Week AWeek go Year Year AYe goar Year

25 Jul

NZc/kg+4+4

774 774 +4

435 435 435

330 330 435

406 406 330

40

770 770 774

758 758 770

832 832 758

83

Last 2 Wks Last Change 5yr A ve Weekindicator A go - UK Export Export demand demand Export indicator demand indicator -Year UKCKT CKTleg - leg UK

450 p/kg UK450 Leg NZc/kg

400 400

450n/c

435

435

330

406

+4

774

770

758

832

400

P rocu P rocu rement rement P rocu Indicator Indicator rement - North -Indicator North I. I. - North I. 95 90%

rocu rement Indicator 85%P Procurement Indicator -- North North I.Island 80% 75% 75 Last Last Y ear Y ear Last Y ear 70% 65% This This Year Year This Year Last Y ear 60% 55 This Year 31-Aug 31-Aug 31-Jul 30-Sep 30-Sep 31-Aug 31-Oct 31-Oct 30-Sep 30-Nov 30-Nov 31-Oct 31-Dec 31-Dec 30-Nov 26-A ug 26-O 26-O ct ct 26-O 26-Dec ct26-Dec 26-Dec 26-Feb 26-Feb 31-Dec 26-Feb

CKT leg

Export demand indicator - UK CKT leg

450

350

400

29 Oct 2929 Dec Dec

Procurem Procurem Procurem ent entIndicator Indicator ent Indicator 300 29 Aug

29 Oct

Change Change

29 Dec

29 Dec 2828 Feb Feb

28 Feb

2Wks 2Wks 3 Wks 3 2Wks Wks Last Last 3 Wks Last Change 5yr 5yr A ve A ve A go A go A go AA go go Year Year A go Year

Procurem ent Indicator

67.3 67.3 66.7 64.4 64.4 67.3

74.1 74.1 64.4

74

72

3 Wks

Last

50% 55 11-Aug 26-A ug

11-Sep 11-Oct 11-Nov 11-Dec 11-Jan 26-O ct indicator 26-Dec Procurement Procurement Procurement indicator - South -indicator South Island Island - 26-Feb South

80%

65 7565 60% 60% 70%

65 60%

Last Last Year Year

Last YearThis This Year Year

This Year

50% 50% 50% 6555 60% 55 55 11-Aug 11-Aug 11-Aug 11-Sep 11-Oct 11-Oct 11-Sep 11-Nov 11-Nov 11-Oct 11-Dec 11-Nov 11-Jan 11-Dec 11-Jan 26-A 26-A ugug 11-Sep 26-A26-O ug 26-O ct ct 26-O 26-Dec ct26-Dec 26-Dec 26-Feb 26-Feb Last Year This 11-Dec Year 8585 80% 80% 85

75 75 80% 70% 70% 75 70% 6565

Island

P rocu P rocu rement rement P rocu Indicator Indicator rement - South -Indicator South I. I. - South I. 85

P rocu rement Indicator - South I.

75 70%

SI Stag - 60kg

n/c

8.15

8.15

7.45

7.57

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5yr A

Change 5yr A ve %% Returned Returned SI %SI Returned -0.6 -0.6SI A go 64.3 64.3 -0.6A go 64.9 64.9 64.3 63.3 63.3 64.9 72.4 72.4 63.3 Year

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65 60% 60% 60% 9090 90 Last Last Y ear Y ear Last Y ear This This Year Year This Year P rocu P rocu rement rement P rocu Indicator Indicator rement - South --Indicator South I. I.Island - South I. Procurement Indicator South 65 60% 85% 85% 90 85% 50% 50% 50% 55 55 55 Last Y ear This Year P rocu rement Indicator - South I. 11-Aug 11-Aug 11-Sep 11-Aug 11-Sep 11-Oct 11-Oct 11-Sep 11-Nov 11-Nov 11-Oct 11-Dec 11-Dec 11-Nov 11-Jan 11-Dec 11-Jan 1126-A 26-A ugug 26-A ug 26-O 26-O ct ct 26-O26-Dec ct26-Dec 26-Dec 26-Feb 26-Feb 26-F 80% 80%85% 80% 50% 55 5yr 5yr ave ave11-Oct 5yr Last ave Last YeYe arar Last Ye This This ar11-Jan YeYe arar This Ye ar 11-Aug 11-Sep 11-Nov 26-A ug 26-O ct 26-Dec11-Dec 26-Feb 75% 75% 75% 70 7080% 70 5yr ave Last Ye ar This Ye ar 70% 70%75% 70% 70 Venis Venis on onPrices Venis Prices on Prices 65% 65%70% 65% Venis on Prices Last Last Year Year Last Year Last Last 2 Wks 2 Wks Last Last Last 2 Wks Last 65% Change Change Change 5yr 5yr A ve A ve 5yr A 60% 60% 60% Last Year Last This This Y ear Y ear This Y ear 50 50 50 Week Week2 Wks A go AWeek go Last Year Year A5yr go A ve Year Change 60% 26-A 26-A ug ug 26-A ug 26-O 26-O ct ct 26-O 26-Dec ct 26-Dec 26-Dec 26-Feb 26-Feb 26-Feb 55% 55% 50 55% This Y ear Week A go Year Stag Stag - 60kg - 60kg NI Stagn/c - n/c 60kg 8.1 8.1 0n/c 0 8.1 8.1 08.1 0 0 7.60 7.60 8.10 7.36 7.36 7.60 7.3 31-Jul 31-Jul 7-Aug 14-Aug 7-Aug 14-Aug 21-Aug 21-Aug 28-Aug 28-Aug 4-Sep 31-Jul 11-Sep 4-Sep 7-Aug 11-Sep 18-Sep 14-Aug 18-Sep 25-Sep 21-Aug 25-Sep 9-Oct 28-Aug 16-Oct 9-Oct 4-Sep 16-Oct 23-Oct 11-Sep 23-Oct 30-Oct 18-Sep 30-Oct 6-Nov 25-Sep 13-Nov 6-Nov 9-Oct 13-Nov 20-Nov 16-Oct 20-Nov 27-Nov 23-Oct 27-Nov 4-Dec 30-Oct 11-Dec 4-Dec 6-Nov 11-Dec 18-Dec 13-Nov 18-Dec 25-Dec 20-Nov 25-Dec 27-Nov 1-Jan 1-Jan 8-Jan 4-Dec 8-Jan 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan NINI 26-A ug 26-O ct 26-Dec 26-Feb 55% 5yr 5yr ave ave4-Sep 5yr ave Last Last Ye Ye ar6-Nov ar Last Ye This ar This YeYe ar ar This Ye ar NI Stag - 60kg n/c 8.10 8.10 7.60 7.36 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug 11-Sep 18-Sep 25-Sep 9-Oct 16-Oct 23-Oct 30-Oct 13-Nov 20-Nov 27-Nov 4-Dec 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan SISI Stag Stag - 60kg - 60kg SI Stagn/c - n/c 60kg 8.1 8.1 5n/c 5 8.1 8.1 58.1 5 5 7.45 7.45 8.15 7.57 7.57 7.45 7.5 5yr ave Last Ye ar This Ye ar

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

AGRIPAK 600L WITH 6M BOOM

5yr A

NIProcurement -0.6 Procurement 66.7 67.3 64.4 74.1 5yr A ve % Returned Procurement indicator indicator -- North -indicator North Island P rocu P rocu rement rement P rocu Indicator Indicator rement North -Indicator North I. Island I. -- North North Island I. 85 % 85 Returned SI 85 -0.6 64.3 64.9 63.3 72.4 80% 80% 80% 77.8 Procurement indicator - North Island P rocu 75 75 rement Indicator - North I. 69.4 8575 70% 70% 70%

60% 55 31-Jul 31-AugProcurement 30-Sep 31-Oct 30-Nov 31-Dec Procurement Procurement Indicator Indicator - South -Indicator South Island Island - South Island 26-A ug 26-O ct 26-Dec 26-Feb

% of export returns % of export returns

$/kg$/kg

South Island60kg 60kgStag stag Price price S outh Island

5yr Last Ave Last Y ear Y ear

2Wks

Procurement Procurement Indicator Indicator - North -Indicator North Island - .5 North 69.4 Island % Returned SI -0Procurement 71.6 71 .7 Island 71

$8 .5

5yr 5yr Ave Ave

k 0 10 10 Aug 10 Sep Sep Sep 10 Oct Oct 1010 Oct 10 Nov 10 Nov 25 J 25 Jul 25 25 Sep Sep1010 25 Sep 2525 Nov Nov 25Nov Nov 2525 Jan Jan

%% Returned Returned NI %NI Returned -0.6 -0.6NI 66.7 66.7 -0.6

28-Feb

2Wks 2Wks 3 Wks 3 2Wks Wks Last Last 3 Wks Last Change 5yr5yr A ve A ve A go AAgo go Year Year A go Year

A go A go Procurement Indicator

200

300 300 300 2929 Aug Aug 29 Aug 2929 Oct Oct 350

200 $2.00

150 $1.50 29-A ug

5.33

South South Island Island South ww eekly eekly Island lamb lamb w eekly killkill lamb kill

350 350

250 Export indicator - US 95CL $2.50 D edemand mand Indicator - US 95CL B eefbeef

Last Year

5.38

435 n/c Export Market Dem and 435

198 1206 98

5yr A ve

5.38

UK UK Leg Legp/kg p/kg UK Legn/c p/kg n/c

663 663 646 Last Year

n/c

500 250k

NZc/kg 5yr A ve NZc/kg

31-Jul 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep 9-Oct 16-Oct 23-Oct 30-Oct 6-Nov 13-Nov 20-Nov 27-Nov 4-Dec 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan 15-Jan Procurement Procurement Procurement Indicator Indicator Indicator 5yr ave Last Ye ar This Ye ar

Island60kg 60kg Stag stag price NoNorth rth Island Price

$8 .5 $99.5 .0 $88.5 .0

8.5 $9 $8.0 .5

This Year

10-Oct25-Nov10-Nov

5.33

100k North eekly N ort hIsland Islandw Week ly lamb Lambkill Kill 100 50k

100k 200

This Year

2 Wks 2 WksLast 3 Wks 3Ye 2Wks Wks Last Last 3 Wks Last ar This5yr Ye Change 5yr Aarve A ve A go A go A go AAgo go Year Year A go Year

5.38

South Island w eekly lamb kill 100k 100k 100k 200 200 200 S outh Island Week ly Lamb Kill 500 250k 50k 50k 50k 100 100 100 400 200k k k0 k 300 100 10 Aug Aug 10010 Aug 10 Sep Sep 1010 Sep 10 Oct Oct 1010 Oct 10 Nov Nov 150k

Last Last Year Year Last YearThis This Y ear Y ear This Y ear 150 150 150 $1.50 $1.50 29-A 29-A ugug$1.50 29-A29-O ug29-O ct ct 29-O 29-Dec ct29-Dec 29-Dec 28-Feb 28-Feb 28-Feb 200 $2.00 31-Jul 31-Jul 7-Aug 14-Aug 7-Aug 14-Aug 21-Aug 21-Aug 28-Aug 28-Aug 4-Sep 11-Sep 4-Sep 31-Jul 11-Sep 18-Sep 7-Aug 18-Sep 25-Sep 14-Aug 25-Sep 21-Aug 9-Oct 16-Oct 28-Aug 9-Oct 16-Oct 23-Oct 4-Sep 23-Oct 30-Oct 11-Sep 30-Oct 18-Sep 6-Nov 13-Nov 6-Nov 25-Sep 13-Nov 20-Nov 9-Oct 20-Nov 27-Nov 16-Oct 27-Nov 23-Oct 4-Dec 11-Dec 4-Dec 30-Oct 11-Dec 18-Dec 6-Nov 18-Dec 25-Dec 13-Nov 25-Dec 20-Nov 1-Jan 27-Nov 1-Jan 8-Jan 15-Jan 8-Jan 4-Dec 15-Jan 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan 15-Jan 5yr 5yr ave ave 5yr ave Last Last YeYe arar Last Ye This ar This YeYe arar This Ye ar

North North Island Island North 60kg 60kg stag Island stag price price 60kg stag price 5yr Ave Last Ye arStag This Ye ar No No rth rth Island Island No60kg rth 60kg Island Stag Stag Price 60kg Price Price $99.5 .0

$99.5 .0 $9 .5

25-Sep 10-Sep

5yr Ave Change Change

5.38

k 0 10 Aug 10 Sep 25 Jul 150k 25 Sep 300 300 300 150k 150k

USc/lb

$5 .0

8.5 8$8 .5 8.5 .5

Last Y ear

0

400 400 200k 200k

10-Dec 25-Jan

LastThis Y ear This Year Year

n/c

North Island North w eekly eekly Island lamb lamb w eekly kill kill lamb P XNorth -1 9.0kg n/c 5.38 5.38 N N ort ort hIsland h Island Island Nw ort Week Week h Island ly ly Lamb Lamb Week Kill Kill ly 5.33 Lambkill Kill 250k 400 P H - 22.0kg n/c 5.38 5.38 5.33 200k M X1300 - 21kg n/c 2.75 2.75 2.80 150k

100 50k

k0 25-Jul 25-Sep 25-Sep10-Sep 25-Sep 25-Nov 25-Nov 25-Nov 25-Jan 25-Jan 25-Jan 10-Aug 10-Sep 10-Sep 10-Oct 10-Oct 10-Oct 10-Nov 10-Nov 10-Nov 5yr 5yr Ave Ave 5yr Ave Last Last YeYe arar Last YeThis ar This YeYe arar This Ye ar

300 $3.00

YM - 13.5kg

150k

South Island Weekly Cattle Kill

5yrLast Ave Last Y ear Y ear

5.3

3.1

5.26

2.8

SI Lamb

10-Dec 200 25-Jan 100k 500 500 250k 250k

S outh Island Weekly Cattle Kill

5yr5yr Ave Ave

PM M PM 1-6.0kg 16.0kg Pn/c Mn/c -n/c 16.0kg 5.38 5.38 n/c5.48 5.38 5.38 5.38 5.33 5.38 P - -16.0kg 5.48 5.285.33

1010 Aug Aug 25 25 Jul Jul

5k

250 $2.50

4.5 $55.5 .5

9$9 .0 .0

10-Nov 25-Nov

5.3

5.46

5.3

200k k k 0 300

S outh S outh Island Island S outh Weekly Weekly Island Cattle Cattle Weekly Kill Kill Cattle Kill 20 5yr Ave Last Y ear This Year 15k 10-Sep 10-Oct 25-Sep

5.33 5.33 5.38

5.38 5.38 n/c

5.46

M utto utto MX1 M X1 MX1 - 21 -21 n 21 kgkgM X1 n/c - n/c 21kg2.90 2.75 2.75 n/c2.90 2.75 2.75 2.75 2.80 2.75 MM utto n nM -utto kg n/c 3.102.80

100 100 250k 400 50k 50k

This Year

South South Island Island South Weekly Weekly Island Cattle Cattle Weekly Kill Kill Cattle Kill

10k 10

5.38 5.38 5.38

n/c

5.3

200k 200k 300n M300 utto 150k 150k

k 0 10-Sep 10-Aug 10-Sep 10-Sep 10-Oct 10-Oct 10-Oct 10-Nov 10-Nov 10-Nov 10-Dec 10-Dec 25-Jul 25-Sep 25-Sep 25-Sep 25-Nov 25-Nov 25-Nov 25-Jan 25-Jan

k 0 10-Aug 25-Jul

5.3

Last 2 Wks Last 2.90 2.90 n/c 2.90 2.90 2.90 3.1 3.1 02.90 0 Week A go Year

PHH P-H -22.0kg 22.0kg - 22.0kg Pn/c Hn/c - n/c 22.0kg 5.38 5.38 n/c5.51 5.38 5.38 5.38 5.33 5.38 P 5.51 5.315.33

250k 250k 400 400

North N ort hIsland IslandWeekly Weekly Cattle Cattle Kill Kill LastThis Y ear This Year Year

5.31 5.31 5.51

PXX P-X -19.0kg 1-9.0kg 19.0kgPn/c X n/c -n/c 19.0kg 5.38 5.38 n/c5.50 5.38 5.38 5.38 5.33 5.38 P 5.50 5.305.33

100k 100k

5yr Last Ave Last Y ear Y ear

5.51 5.51 5.51

YM - 13.5kg

200 200 Slaughter

5yr5yr Ave Ave

5.3

PH PH - 22.0kg - 22.0kg P Hn/c - n/c 22.0kg5.51 5.51 n/c

Slaughter Slaughter Slaughter P M - 16.0kg

Export Export Export indicator -US US -indicator US 95CL 95CL beef - US beef 95CL De Ddemand mand edemand mand Indicator Indicator D indicator edemand mand - US -Indicator 95CL 95CL B eef -B US eef 95CL B eefbeef 95CL USc/lb -2 204 206 198 203 300 300 300 $3.00 $3.00 $3.00 USc/lb USc/lb

$/kg

$/kg

20 10k

200 200 $2.00 $2.00

$66.5 .0

$/kg

5.30

NZc/kg

Last Year $66.5 .0 $6 .5-Aug 31 -Jul 7-Aug 7-Aug 14 14 -Aug 21 21 -Aug 28-Aug 28 -Aug 31 4-Sep -Aug 4-Sep -Jul 11 7-Aug 11 14 -Sep 1826-O -Sep 18 -Aug 21 -Sep 25ct -Sep 25 -Aug 28 -Sep 9-Oc -Aug 9-Oc 16 4-Sep 16 t11 -Oct 23t-Oct 23 -Sep 18 -Oct 30-Oct 30 -Sep 25 -Oct 6-Nov -Sep 6-Nov 13 9-Oc 13 -No 16 20 -No 20 t-Oct -No 23 27 v -No 27 v-Oct -No 30 v4-Dec -No v-Oct 4-Dec 11 v6-Nov 11 v13 -Dec 1826-Dec -Dec 18 -No 20 -Dec 25-Dec 25 -No 27 -Dec v 1-Jan -Dec -No v1-Jan 4-Dec 8-Jan 11 v8-Jan 15 -Dec 15 18 -Jan -Jan -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan 26-A 26-A ug31 ug-Jul 26-A ug 26-O ct-Sep 26-O ct-Oct 26-Dec 26-Dec 26-Feb 26-Feb 26-Feb This Year

6.56.5

5.20

250 250 $2.50 $2.50

3.5

7$7 .0 .0

5.20

NZc/kg NZc/kg

$4 .026-A ug 26-O ct 26-Dec 26-Feb 31 -Jul 7-Aug 14 -Aug 21 -Aug 28 -Aug 4-Sep 11 -Sep 18 -Sep 25 -Sep 9-Oc 16t-Oct 23 -Oct 30 -Oct 6-Nov 13 -No 20 -No 27 v -No v4-Dec 11 v -Dec 18 -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan

7.5 7$7 .5 7.5 .5

n/c

95CL 95CL USc/lb USc/lb 95CL USc/lb -2-2 204 204 -2 Export Market Demand

This Year

SouthIsland Island300kg 300kg steer S outh Steerprice Price

$55.5 .5

$5 .0

8$8 .0 .0

Lo cal Trade - 230kg

25-Jul 10-Aug

3.53.5 3.5 4.5 4$4 .026-A .026-A ugug $4 .026-A ug 26-O 26-O ct ct 26-O ct 26-Dec 26-Dec 26-Dec 26-Feb 26-Feb 26-Feb 3131 -Jul 7-Aug -Jul 7-Aug 14 14 -Aug 21 21 -Aug 28-Aug 28 -Aug 31 4-Sep -Aug 4-Sep -Jul 11 7-Aug 11 14 -Sep 18-Sep 18 -Aug 21 -Sep 25-Sep 25 -Aug 28 -Sep 9-Oc -Sep -Aug 9-Oc 16 4-Sep 16 t11 -Oct 23t-Oct 23 -Sep 18 -Oct 30-Oct 30 -Sep 25 -Oct 6-Nov -Oct -Sep 6-Nov 13 9-Oc 13 -No 16 20-No 20 t-Oct -No 23 27 v -No 27 v-Oct -No 30 v4-Dec -No v-Oct 4-Dec 11 v6-Nov 11 v13 -Dec 18-Dec 18 -No 20 -Dec 25-Dec 25 -No 27 -Dec v 1-Jan -Dec -No v1-Jan 4-Dec 8-Jan 11 v8-Jan 15-Dec 15 18 -Jan -Jan -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan $4 .5-Aug 5yr5yr Ave Ave 5yr Last Ave Last YeYe ar ar Last LastYear Ye This This arYeYe ar ar ThisThis 5yr Ave Year Ye ar

9$9 .5 9.5 .5 9.5

3.80

Export Export Market Export Demand Demand Market Demand 0Market k

South Island Island South 300kg 300kg Island steer steer price 300kg price 5yr Ave Island Last Yearsteer This Year S outh SSouth outh Island Island S outh 300kg 300kg Steer Steer 300kg Price Price Steerprice Price

$66.5 .0

$4 .5

6.5 6$6 .06.5 .0

3.70

5yr Ave

7-Aug 14 -Aug 21 -Aug 28 -Aug 4-Sep 1126-O -Sep 18 -Sep 25ct-Sep 9-Oc 16t-Oct 23 -Oct 30 -Oct 6-Nov 1326-Dec -No 20 -No 27 v -No v4-Dec 11 v -Dec 18 -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan 26-A31 ug-Jul 26-Feb

4$4 .5 .5

6$6 .5 .5

3.70

NI Lamb

USc/lb

6.5

$63.5 .0 $4 .0

5$5 .0 .0

7.5 7$7 .07.5 .0

n/c

5.30 5.30 5.50

SISI Lamb Lamb YM SI YM Lamb - 1-3.5kg 13.5kgYM - n/c 13.5kg n/c

% of export returns

$/kg

$5 .0 $4 .5

7$7 .5 .5

40k 60Co w - 200kg M

5k

$43.5 .0 31 31 -Jul 7-Aug 7-Aug 1414 -Aug 21 -Aug 21 -Aug 28-Aug 28 -Aug 31 4-Sep -Aug 4-Sep -Jul 11 7-Aug 11 14 -Sep 1826-O -Sep 18 -Aug 21 -Sep 25ct -Sep 25 -Aug 28 -Sep 9-Oc -Aug 9-Oc 16 4-Sep 16 t11 -Oct 23t-Oct 23 -Sep 18 -Oct 30-Oct 30 -Sep 25 -Oct 6-Nov -Sep 6-Nov 13 9-Oc 13 -No 16 20 -No 20 t-Oct -No 23 27 v -No 27 v-Oct -No 30 v4-Dec -No v-Oct 4-Dec 11 v6-Nov 11 v13 -Dec 1826-Dec -Dec 18 -No 20 -Dec 25-Dec 25 -No 27 -Dec v 1-Jan -Dec -No v1-Jan 4-Dec 8-Jan 11 v8-Jan 15 -Dec 15 18 -Jan -Jan -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan 4.5 26-A 26-A ug ug-Jul 26-A ug 26-O ct-Sep 26-O ct-Oct 26-Dec 26-Dec 26-Feb 26-Feb 26-Feb

8.5 8$8 .08.5 .0

4.75

10 k0 k0 25-Jul 25-Jul 10-Aug 10-Aug

North Island 300kg bull price No rth Island 300kg Bull Price

$/kg

$/kg

3.5 4$4 .0 3.5 .0

8$8 .5 .5

4.60

4.5

4$4 .5 .5

9.5 9$9 .09.5 .0

4.60

20 15k

$6 $5.0 .0

$5 .5 $45.5 .5

4.54.5

n/c

5.50 5.50 5.50

c/kgCWT

PNorth 2North Co whIsland -h 230kg n/c 3.75 3.85 Island North Weekly Cattle Cattle Weekly Kill Kill Cattle N ort N ort Island Island NWeekly ort Weekly Weekly hIsland Island Cattle Cattle Weekly Kill Kill3.75 Cattle Kill Kill

10k

6$6 .0 .0

5$5 .5 5.5 .5 5.5

5.35

5k5k

5yr Ave Island Last Yearbull price This Year North North Island Island North 300kg 300kg bull bull price 300kg price No No rth rth Island Island No300kg rth 300kg Island Bull BullPrice 300kg Price Bull Price

26-A ug 26-O ct 26-Dec 26-Feb 6.5 $4 .5 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep 9-Oct 16-Oct 23-Oct 30-Oct 6-Nov 13-Nov 20-Nov 27-Nov 4-Dec 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan 15-Jan $6 .0 31-Jul

6.5

5.15

15k 15k

5yr5yr AveAve 5yr Last AveLast Year Year Last Year This This Year Year This Year 4.04.0 4.0 ugug $4 .526-A ug 26-O 26-O ct ct 26-O ct 26-Dec 26-Dec 26-Dec 26-Feb 26-Feb 26-Feb 4$4 .526-A .526-A $5 .521-Aug 31-Jul 31-Jul 7-Aug 7-Aug 14-Aug 14-Aug 21-Aug 28-Aug 28-Aug 31-Jul 4-Sep 4-Sep 11-Sep 7-Aug 11-Sep 14-Aug 18-Sep 18-Sep 21-Aug 25-Sep 25-Sep 28-Aug 9-Oct 9-Oct 16-Oct 4-Sep 16-Oct 11-Sep 23-Oct 23-Oct 18-Sep 30-Oct 30-Oct 25-Sep 6-Nov 6-Nov 13-Nov 9-Oct 13-Nov 16-Oct 20-Nov 20-Nov 23-Oct 27-Nov 27-Nov 30-Oct 4-Dec 4-Dec 11-Dec 6-Nov 11-Dec 13-Nov 18-Dec 18-Dec 20-Nov 25-Dec 25-Dec 27-Nov 1-Jan 1-Jan 4-Dec 8-Jan 11-Dec 8-Jan 15-Jan 15-Jan 18-Dec 25-Dec 1-Jan 8-Jan 15-Jan 5yr5yr Ave Ave 5yr Last Ave Last YeYe ar ar Last Ye This This ar YeYe ar ar This Ye ar 5.0

Last Ye ar

5.15

20 10k 2020

South Island 16kg M M Lamb lamb price S outh Island 16.0kg Price

5yr Ave

n/c

k k30k 010-Aug 0 40 10-Aug 25-Jul 25-Jul 20k

This Year

$5 .0

4.0

P 2 Steer - 300kg

202040k 10k 10k 60

$6 .0 6.0

$5 .0

5.30

5.2

PX PX - 1-9.0kg 19.0kgP X n/c -n/c 19.0kg5.50 5.50 n/c

Thousand head

$/kg

$/kg

$/kg

$57.0 .5

$6 .5 5.0

5.30 5.30 5.30 5.20

5.2

5.28 5.28 5.48

UKp/kg

This Year

6$6 .0 .0 6.0 6.0

26-O ct

5.35 5.20 5.20 5.20

30k 30k 30k 4040 40 Slaughter 20k 20k 20k

South South Island South 16kg 16kg M Island M lamb lamb 16kg price price M Lamb lamb price S5.0 outh S outh Island Island SIsland outh 16.0kg 16.0kg Island M M Lamb 16.0kg Lamb Price Price M Price 26-A ug

Lo cal Trade - 230kg n/c 5.20 5.35 LoLo calcal Trade Trade -Lo 230kg - 230kg cal Trade n/c -n/c 230kg 5.20 n/c

40k 40k 6060

26-Dec 26-Feb 26-Feb

Last Year

3.80

5.26 5.26 5.46

5.48 5.48 5.48

% of export return

LastThis Year This Year Year

26-O ct 26-Dec 26-Dec

3.80 3.80 3.70 4.20

5.46 5.46 5.46

% of export returns

5yrLast Ave Last Year Year

26-A ug 26-O 26-O ct ct

3.70 3.70 3.70 4.00

Slaughter Slaughter Slaughter M 2 B ull - 300kg

8.15

Island 16kgMMLamb lamb price No rthNorth Island 16.0kg Price

5.0 7.0 $5.0 $6.5

MM CoCo w Co -w200kg -w 200kg Co w n/c -n/c 200kg 3.70 n/c M -M 200kg n/c 3.70 4.00

4.60 4.60 4.60 5.20

5.46 5.46 n/c

MM utto utto n n MM X1 MX1 utto - 21 - n 21 kgkgMChange X1n/c - n/c 21kg

Thousand head

n/c

3.85

SI

5.15.1 55.1 55 5.45

La Ye

PM PM - 1-6.0kg 16.0kg P Mn/c -n/c 16.0kg5.48 5.48 n/c

LAMB PRICES

Thousand head

$5.5

8.10

4.60

4.75

3.85 3.85 3.75 4.20

Thousand head

n/c

6.0

n/c

4.75 4.75 4.60 5.40

3.75 3.75 3.75 4.00

Thousand head

Ve n is o n - AP 60kg $6.0

5.20

5.35

Thousand head

n/c

8.15

Last

5.35 5.35 5.15 5.50

Thousand head

B$6.5 u ll7.0 - M2 300kg

8.15 8.15 n/c

2 Wks

Last Last 2 Wks 2 Wks Last Last Last 2 Wks Change Week Week A go AWeek go Year Year A go

NINI Lamb Lamb YM NI YM -Lamb 1-3.5kg 13.5kgYM - 1 n/c 3.5kg n/c

Thousand head

5.38

5yr Ave

6.5 6$6 .0 6.5 .0

5.30

n/c

8.10 n/c n/c

$4.54.0 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep 9-Oct 16-Oct 23-Oct 30-Oct 6-Nov 13-Nov 20-Nov 27-Nov 4-Dec 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan 15-Jan $6 .0 6.031-Jul

4.54.5

5.30 5.30 5.35 Year

5.48

8.10 n/c 8.10

7.0 $5.0 $6 .5

5$5 .0 .0

5.35 5.35 A5.35 go

n/c

6$6 .5 .5

6.56.5

4.20

Last

$5.5

5$5 .0 .0

4.20 4.20 4.00

SISI NIP 2PSteer 2P SI Steer - 300kg - 300kg P- 2 Steern/c - n/c 300kg 5.15.1 55.45 n/c 5 2 Steer 300kg n/c MM 2B 2M ull B2ull -B300kg -ull 300kg 2 B ull n/c -n/c 300kg 4.60 n/c -M300kg n/c 4.60 5.20

5yr5yr AveAve

5.05.0

4.00 4.00 4.00

We e k

26-A 26-A ugug

5$5 .5 .5

MM CoCo w -w200kg - 200kg M Co w n/c -n/c 200kg 4.00 4.00 n/c

Change LoLo cal cal Trade Trade -Lo 230kg - 230kg cal Trade n/c -n/c 230kg 5.35 5.35 n/c c/kgCWT Week

$4.5 .54.0 $4.5 $6.0 4.0 4.0 6.0 31-Jul 31-Jul 7-Aug 7-Aug 14-Aug 14-Aug 21-Aug 21-Aug 28-Aug 28-Aug 31-Jul 4-Sep 7-Aug 4-Sep 11-Sep 14-Aug 11-Sep 18-Sep 21-Aug 18-Sep 25-Sep 28-Aug 25-Sep 9-Oct 9-Oct 4-Sep 16-Oct 16-Oct 11-Sep 23-Oct 23-Oct 18-Sep 30-Oct 30-Oct 25-Sep 6-Nov 6-Nov 13-Nov 9-Oct 13-Nov 16-Oct 20-Nov 20-Nov 23-Oct 27-Nov 27-Nov 30-Oct 4-Dec 4-Dec 6-Nov 11-Dec 11-Dec 13-Nov 18-Dec 18-Dec 20-Nov 25-Dec 25-Dec 27-Nov 1-Jan 4-Dec 1-Jan 8-Jan 11-Dec 8-Jan 15-Jan 18-Dec 15-Jan 25-Dec 1-Jan 8-Jan 15-Jan

7.07.0

4.20

% of export returns

$5.0 .0

4.20 4.20 4.00

% of export returns

5.05.0

4.00 4.00 4.00

BEEF PRICES

th5.15 Is lan d 5.15 5.45 n/c n/cS o u5.15 n/c

Thousand head Thousand head

$5.5 .5

P 2PCo 2 Co w -w230kg - 230kg P 2 Co w n/c -n/c 230kg 4.00 4.00 n/c

c /kg

$/kg

$/kg

$6.0 .06.0 6.0

5.40

We e k

L amb - PM 16.0kg

$6.5 .5

5.50

5.40 5.40 5.20

c /kg

eVe n is n is on o n- Ve AP - AP n 60kg is 60kg o n - AP 60kg n/c n/c

7.07.0

5.50 5.50 5.45

5.20 5.20 5.20

5.38

ge L as5.20 t n/cC h an gn/c e L as t4.60 u B ll u ll- M2 - M2 300kg B300kg u ll - M2 300kg n/c n/c C h an 5.20 n/c 5.20 n/c 4.60 4.60 c /kgCWT

5.45 5.45 5.45

MM 2B 2 ull B ull - 300kg - 300kg M 2 B ull n/c -n/c 300kg 5.20 5.20 n/c

Thousand head Thousand headThousand head Thousand head

Me at Is lan d Sete e re -r P2 - P2 300kg S te 300kg e r - P2 300kgn/c n/cNo rth5.45 n/c 5.45

5.38 5.38 n/c

P 2PSteer 2 Steer NI - 300kg - 300kg P 2 Steern/c - 300kg n/c 5.45 5.45 n/c

UKp/kg

5.48 n/c n/c

NINI

Change Change

c/kgCWT c/kgCWT c/kgCWT

UKp/kg UKp/kg

5.48 n/c 5.48

L as t We e k

Last Year

% of export return

Lmb amb- PM - PM 16.0kg L amb 16.0kg - PM 16.0kg n/c n/c

CC h L an as h an tg eg e CL h as Lan as tg te We c /kg ce/kg k We We ce/kg k ek

Last Last 2 Wks 2 Wks Last Last Last 2 Wks Change Change Change c/kgCWT c/kgCWT c/kgCWT Week Week A go A Week go Year Year A go

% of export % of export return return

CC h an h an g eg e C hL an as L as tg e t c /kg c /kg We cWe /kg ek ek

ckgCWT /kgCWT c /kgCWT

LAMB LAMBPRICES PRICES LAMB PRICES

BEEF BEEFPRICES PRICES BEEF PRICES

No No rth rthIsIs lan lan No d rth d Is lan S do Su o th u thIsIs lan Slan odudth Is lan d

% of export returns

Me at

LAMB MARKET TRENDS

% of export returns

Me e atat

BEEF MARKET TRENDS

of export returns % of%export returns

MARKET SNAPSHOT

Otago/Southland South Island Rob Marshall 0272 486 822 Chris Waites 0277 260 330

Freecall 0800 106 898 Email sales@croplands.co.nz

www.croplands.co.nz

RURAL NEWS // DECEMBER 6, 2016

MARKETS & TRENDS 19 PRICE WATCH

INTERNATIONAL BEEF: Trading

activity in the US market has been quiet this week leading into the Thanksgiving holiday. Imported prices for both 95CL bull and 90CL have softened marginally in recent weeks. Even though the supply of bull meat from NZ has got off to a slow start, the market is aware that volumes will rise prior to Christmas, and pricing is indicative of this. Beef production in the

SHEEP:

Lamb slaughter has struggled to hit significant throughputs in recent weeks. Poor growth rates and very little pressure on feed levels are the main factors behind this trend. This is keeping schedules from falling as much as meat companies indicated earlier in the season. Most, however, continue to signal that the margins are not viable at current schedule levels, and once competitive pressure is removed, schedules will fall sharply.

New seasons lambs are gradually gaining some volume through the store lamb trade. The market for these is easing a little, as is typical for this point in the season. However with feed levels as great as they are, there is not expected to be any sharp decline in the store lamb market any time in the near future. Processors have been plugging any gaps in the lamb kill with ewes recently, ensuring schedules for mutton have held stable.

WOOL PRICE WATCH

Overseas Wool Price Indicators

Change

24-No v

17-No v

Last Year

Co arse Xbred

-20

413

433

598

Co arse Xbred

-9

303

312

396

Fine Xbred

- 17

411

428

642

Fine Xbred

-7

301

308

425

Lamb

n/c

517

517

750

Lamb

+7

379

372

497

M id M icro n

n/c

735

735

945

M id M icro n

+9

538

529

626

Indicato rs in NZc/kg

800 850

Wool trends Woindicator ol Indicator Trends

24-No v 17-No v

Last Year

35 micron w ool (US$)

500 FXI LI

600 650

550 400 450 20-Nov Dec 20-Feb 20-May 20-A ug Aug 20-Nov Oct Feb Apr Jun CXI FXI LI

600 550

Change

CXI

750

650 650

Indicato rs in USc/kg

USc/kg

US is increasing at a faster rate than analysts had earlier indicated, and weekly production rates are at levels not seen since 2010. Importers are not willing to buy meat forward and run the risk of having high priced inventories if the increased supply pushes the market down in early 2017.

400

300 200 25-A ug 25-O ct 25-Dec 5yr ave Last Ye ar

Xbred indicator C oCoarse arse Xbred Indicator Last Year

This Year

550 450 500 350 450 Oct ug Dec Febct Apr 25-Dec Jun 25-A 25-O 5yr ave Last Ye ar

Aug 25-Feb This Ye ar

25-Feb This Ye ar

39 micron w ool (US$)

500

USc/kg

the works, and even prime and local trade numbers have been flat in recent weeks. Given the increased Fonterra payouts and the current feed situation across the country, it is expected there will be very few of these heading to slaughter in the next few months. These circumstances have generated more competition between processors for numbers, adding some stability to schedules for the moment. Store cattle markets are in a solid state for anyone willing to sell. Some buyers had withheld from buying earlier in November in the hopes that prices would soften, but such easing never occurred, and they’ve had to re-enter the market now to ensure they don’t miss out. Weaners are selling well, with spot-market sales often happening above contract rates, especially in the South Island.

c/kg

BEEF: Bulls are scarce to be seen at

c/kg

NEWS

400 300 200 25-A ug

25-Nov 5yr ave

25-Feb Last Ye ar

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RURAL NEWS // DECEMBER 6, 2016

20 AGRIBUSINESS

Best beef like making fine wine PAM TIPA pamelat@ruralnews.co.nz

PRODUCING SPECIALIST beef is like developing a fine wine, says Pedro Merola, founder of Brazilian specialist beef company Feed.

The fourth-generation farmer says Feed is showing a new way to produce meat in Brazil. And it’s delivering much better returns to its farmers.

“We believe we can do different things and serve different markets,” he told the recent Rabobank Farm2Fork conference in Sydney, attended

by Rural News.

Merola believes the relationship between farmers, retail stores and consumers can be improved. Feed’s goal is to begin a relationship with its consumers for life. They aim to improve

consumers’ day-to-day relationship with food in the home.

They started nine years ago on a farm producing the “Feed difference” and opened a retail store two and a half years ago.

A breed common to Brazil called Nelor, which suits the country’s environment, was crossed with Angus and other superior meat breeds. The company aims for perfection in the genetics to ensure the animals produce the best flavour.

The cattle are grass fed, but get supplementary feed until 22 months or 600-650kg.

They are finished on feedlots for the last 100 days.

Producing the beef is just the start of the business, he says. The customer has to understand the taste difference,

Pedro Merola

“so you aim for experiences like wine tasting”.

They have developed a “shopping

experience” in their city – Sao Paulo.

It is a flagship store for their meat and other things to use in cooking.

“We are not trying to be a supermarket,” Merola says. “We are a meat shop and have everything there for the guy who spends 30 minutes walking around.

“They can learn more, talk with our employees and improve their satisfaction in the home with the meat and how to cook it differently.”

The store also serves meals and holds functions, “to make the people feel more alive and have more fun with us”.

The company offers consumers various channels for contact: an app available from this month, a call service and delivery time of just two hours.

Merola says you have to love what

you do. “For me producing food, being a farmer and helping people eat better… you do it because you like it very much,” he told Rural News.

“For us to produce beef is like producing wine – we have different types of animals; they eat differently, but even with all the controls each will taste a little bit different.

“We have a price based on what kind of meat [the farmer] delivers to us. That’s how much they get… more for what we call ‘reserve’.

“You know ‘reserve’ wine? We have that for meat too. We have, say, 100 animals: 10 of them are perfect and they are ‘reserve’. They pay more for them.”

• Rural News reporter Pam Tipa attended the Rabobank F2F conference in Sydney courtesy of Rabobank.

RURAL NEWS // DECEMBER 6, 2016

AGRIBUSINESS 21

Lean, but not mean – saves money PAM TIPA pamelat@ruralnews.co.nz

THE FIRST year Bay of Plenty Trevelyans Pack and Cool store introduced ‘lean manufacturing’ it saved the company about $340,000, says managing director James Trevelyan.

The kiwifruit and avocado operation made these savings “by doing the job right first time and concentrating on that unloved matrix, quality”.

“This year we have made our growers over $2 million extra by having lower fruit loss than the industry average, by measuring and getting all those little decisions right,” he says.

Trevelyan told the Biosecurity Forum 2016 in Auckland last month that he lost a big chunk of his orchard and the fruit they were processing during the Psa incursion.

They got through the tough times a continuous improvement programme started nine years ago when Zespri asked if they wanted to be part of a project trialling ‘lean manufacturing’ -- a regime of removing waste, measuring, mentoring, effective information, understanding, solving problems and continuous improvement.

He saw linkages to the five strategic directions of Biosecurity 2025 – the new government biosecurity direction launched at the forum.

“Our largest risk to the business is biosecurity,” he says. The cost to New Zealand horticulture of a single Queensland fruit fly incursion would be $2 million to $400 million.

Trevelyan says his world-class packing and fruit storage facility, operating for nearly 40 years, is effectively a training school that happens to pack fruit.

“How do we do this?

We sit together as a group and we have inductions and mentoring and we cater for all the different nationalities.”

They have supervisors who speak different

languages and they build teams of 135 people.

They pick star players – mentors – who start later in the day and finish earlier in the night. These mentor teams during their shifts and if management wants to make changes they do so via these people.

“Quality – we always talk quality at work....

Nine years ago quality was something we didn’t really love very much. We always talked about cost and production, we never seemed to talk about quality.”

Now they always talk quality and they measure it.

“I know a really good result is made up of 1000 little decisions. We map all those 1000 little decisions and we see how we are getting on. If the little decisions look good, guess what? The big decision is great.”

On the workshop floor if there’s a good result people are given feedback. Or workers can flick a light switch to ask a question.

They also have a television screen to show a team how they are getting on. The screen rolls around and they chase given standards of quality, production and costs.

“As a team of 135 they are working to balance these three things together. So that is built up of getting all the little decisions right.”

The team leaders will talk about quality with their supervisor four times a day. The team starts to live it.

They ask people what the problems are – “what’s pissing them off”, says Trevelyan. They always tell you. And if they ask for good ideas, they always get a big response.

Then they sit around as a team – a leadership team or affected parties – and put tension into the discussions and talk about the problems and how to solve them.

“Sometimes you’ve got to use your mind rather than your money to solve

these problems. There are a lot of gems out there that don’t cost a lot of money. You’ve got to get your mind in the right space.

“In summary, we measure, we ask people what their problems are and we solve those problems,” he says.

Trevelyan says he fully

supports the new Biosecurity 2025 strategy.

James Trevelyan speaking at the recent BioSecurity Forum.

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RURAL NEWS // DECEMBER 6, 2016

22 OPINION EDITORIAL

EDNA

Commonsense!

OUR THOUGHTS and best wishes go out to the people in Marlborough and North Canterbury after the series of earthquake that have hit those regions recently.

We hope all affected – especially farming and rural people -- are able to get through the tough and challenging times in the months ahead as the clean-up and recovery rolls on.

We also hope the Government and bureaucracy quickly pick up and act on things learned during and after the quakes.

What we have learnt – so far – is that Civil Defence, or ‘Emergency Management’ as it prefers to be called nowadays, needs to put its staff and volunteers through a rural awareness course.

The sad fact of life during the recent earthquakes has been CD’s lack of understanding of the needs of farming people.

Do the people in CD truly understand the plight of farmers? Many farmers have not only lost their homes and lack basic necessities, but they carry the added responsibility of caring for stock – cows, sheep, cattle, deer or man’s best friend, the farm dog.

It appears many CD people don’t get this, and understandably farmers in North Canterbury and Kaikoura have been frustrated at the inflexible, bureaucratic approach of some well-meaning volunteers dealing with farmers at a local level.

Yes, safety is important, but some behaviour of the civil defence people beggars belief. Understandably, care is essential on the inland route to Kaikoura, but serious questions arise about the management of this road.

Even the Acting Minister of Civil Defence, Gerry Brownlee, has asked questions about the workings of the CD response and so he should.

Farmers may be forgiven for feeling they have been dealt a bad hand by CD. Its role rightly includes restoring calm, but in this case some CD people have added to farmers’ woes by being impractical and non-pragmatic. Their approach seems to many rural people to be, “If it’s not in the CD manual we don’t do it”.

Sorry, but that’s daft! A little common sense will go a long way.

It requires a bit more thinking, a lighter touch – and, to be fair, training – for CD to appreciate the plight of a dairy farmer whose rotary milking platform has been jolted off its rollers or a sheep farmer needing to get his animals crutched .

Consider the plight of a farmer plagued by landslips, destroyed fences and stock going bush, and lacking tracks for stock mustering and digger access for track repair. To be told by dad’s army that he can’t go home is the final straw in an already unbelievably stressful time.

The Kaikoura/North Canterbury quake highlights the enduring gap between town and country, especially at the level of officialdom.

RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399

“I prefer the smell of a real Christmas tree – have you got an old pine Edna could top?”

Want to share your opinion or gossip with the Hound?

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

THE HOUND No thanks!

Tough at the top

Tax dodgers

Double Dutch

SHOULD THE Hound ever be passing through Blenheim and needs a place to doss for the night he now knows where not to stay: with the local ‘clairvoyant’ Rebecca O’Sullivan, who offers accommodation via AirBnB. Guests leasing a room in her home are required to eat vegan and relinquish television. And the room will have a salt lamp to “purify the energy”.

Now your old mate can do without the idiot box any day, but having to eat a vegan diet and hunch up to an energy enhancing salt lamp is too much. O’Sullivan claims people staying at her place have a “chance to trial a wholesome and healthy life.”

And for this ‘privilege’ you pay $49 a night plus a $20 cleaning fee. This old mutt reckons this ‘clairvoyant’ should be able to see clearly why many people, including yours truly, will give her place an extra-wide swerve.

YOUR OLD mate wishes to express his thoughts and sympathies to the good people of Kaikoura, North Canterbury and Wellington who have endured the recent earthquakes and are now in the process of recovery and rebuilding. The Hound noted that Wellington’s Centreport was hit heavily in the quake and has some major issues ahead. The port company is chaired

by Lachie Johnstone, who also happens to be the chair of Farmlands, also going through tough times. Let’s hope Johnstone can keep his eye on the ball getting things back on track at Farmlands, while also having to deal with the aftermath of the quakes and getting Centreport back in shape. Tough times ahead, but I guess that’s why Johnstone may be follically challenged and why he gets the big bucks for these roles.

THIS OLD mutt notes the flurry of calls from lefty luvvies for Destiny Church to be stripped of its taxfree status after its leader, the selfproclaimed bishop Brian Tamaki, in a sermon made a dumb and dubious linkage to the recent earthquakes and homosexuality. However, the Hound has not heard the same calls from the luvvies to end the tax-free status of multinational activist group Greenpeace. The lobby’s rampant political activities and dubious environmental claims can be seen in its latest advertising campaign alleging the NZ government is allowing our rivers to be destroyed and drinking water polluted by dairy farming and irrigation schemes. It’s past time for our government to end Greenpeace’s tax-free status; it’s clearly not a charity, but a huge money-making, overtly political lobby group.

YOUR CANINE crusader sees that former Fonterra chairman Henry van der Heyden has not retired back to the farm since giving up the top job at the dairy co-op a few years back. He recently picked up the chairmanship of Rabobank NZ, replacing former Kiwifuit NZ and Air NZ chair John Palmer, another ex-producer board director who retired from the board. Of course, Rabobank NZ is a subsidiary of the Holland-based Rabobank Group, the world’s leading specialist food and agribusiness bank. As a mate of the Hound’s opined, Sir Henry is not only ideally experienced to chair NZ’s largest rural lender, but with his family heritage he is also well-suited to heading up the NZ branch of a Dutch conglomerate.

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REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................ Ph 09 913 9630 Peter Burke .............................Ph 06 362 6319 Nigel Malthus ...................... Ph 021 164 4258

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MACHINERY EDITOR: Mark Daniel .............................Ph 021-906 723 or 07-824 1190

CONSULTING EDITOR: David Anderson .......................................Ph 09 307 0399 davida@ruralnews.co.nz

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ABC audited circulation 81,004 as at 31/03/2016

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Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.

RURAL NEWS // DECEMBER 6, 2016

OPINION 23

Will the crabs scatter or cozy up? as the dust settles after change, but there is a lot of hard work ahead of us to retain our relevance in a more inward looking world. Value chains are

increasingly global and food insecurity remains a fundamental concern.

The hard work starts now and NZ has a crucial leadership role to play in

articulating the benefits of a more outward looking, integrated world.

• Mike Petersen is NZ’s special agricultural trade envoy.

Mike Petersen

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Political upheaval in Europe and the US has made the world a much more complicated place to do business.

The UK’s decision to leave Europe and the election of Donald Trump as incoming president of the US has striking similarities, with consequences that will impact New Zealand for many years.

No one should doubt this movement for nationalism, against retaining the status quo. The Brexit referendum and the US election defied the pollsters and pundits, and gave a poke in the eye to the ‘establishment’.

The Trump catchphrase ‘Make America great again’ could equally have applied to the advocates of ‘Brexit’ seeking to regain control over migration and the bloated EU bureaucracy. In many other countries there are similar sentiments.

The big question is, what does this mean for NZ in its reliance on earning its living via world trade?

Firstly, we need to see how much of the rhetoric will be acted upon.

The US is the world’s second-largest exporter after China, so it is inconceivable the US will retreat into its shell and erect barriers that would effectively force it into domestic-only trade. The fast-growing middle class in the emerging nations are prizes the business interests in the US and the UK want to grasp.

In the immediate future, legislation required to pass the Trans Pacific Partnership (TPP) in the ‘lame duck’ session in the US seems dead in the water. And it seems likely that the two years required for all 12 TPP signatory countries to ratify TPP will not see out the course. NZ wants the US in TPP, but a US decision to withdraw or the other 11 members pursuing other options seems obvious.

Suggestions of a renegotiation of some aspects of TPP to appease president-elect Trump raise several complications. No members of TPP obtained everything they wanted in the long, drawn-out negotiations. TPP is like 12 crabs under a rock: it took seven years to coerce all members under the rock, and if one party decides to lift the rock up and renegotiate the terms it is likely all the crabs will scatter.

The most obvious way forward appears to be either concluding TPP minus the US, or seeing it evolve into a broader deal among APEC member countries led by China. Whichever option is pursued, a US withdrawal from TPP would effectively be a withdrawal from Asia-Pacific.

Even Russia has gleefully stepped into the breach alongside China to champion other options.

Meanwhile, the path forward for business with Europe and the UK following Brexit needs to be dealt with in two parts.

Expectations are high that Europe will continue to progress plans towards a new trade and economic agreement with NZ. Resolutions required to begin negotiations should be passed early next year.

The shape of NZ’s relationship with the UK post-Brexit is less clear.

Proceedings to divorce the UK from the other 27 EU member countries will begin early in 2017.

The first priority will be to determine the future trade, economic and people-to-people relationships between Europe and the UK. Third party relationships such as the one with NZ will take longer to work through – probebly several years.

The political challenges of improving market access for NZ exporters have always been difficult. Political changes in the US and the vote by the UK to leave Europe are speed bumps rather than roadblocks in the world of trade.

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RURAL NEWS // DECEMBER 6, 2016

24 OPINION

You might be on holiday, but tax isn’t CHRIS CUNLIFFE

INLAND REVENUE (IRD) is not one for acknowledging the holiday season.

The department’s making many businesses pay an instalment of provisional tax on January 15 can be galling.

What’s more, as well as this falling due just after Christmas and new year, the repercussions of not making this payment

on time are unseasonably harsh and can hit the pocket hard.

A couple of things can make this payment somewhat awkward and problematic for those with a provisional tax obligation due in January.

One is timing. As alluded to before, it must be paid when many people are off work enjoying a much-needed break and businesses are often cash-strapped.

The other is know-

ing how much to pay.

For farmers and growers, this is made even more difficult because the rural sector is exposed to such volatility. Fluctuating commodity prices, the exchange rate and extreme weather can all have an adverse effect on income.

Most business owners will use the time in the lead-up to Christmas to look ahead and figure out what cashflow they will need to cover overheads

during the holiday period.

Be sure to factor provisional tax into your budget if you are due to make a payment on January 15.

After all, unlike other creditors who may allow a bit of leeway if money is owed to them, IRD is not so forgiving. Fail to pay on time and it will charge usurious interest (8.27%) and late payment penalties. The latter can quickly add up and lead to a spiral of

despair given how they are applied: ■■ A 1% penalty is charged the day after payment was due.

■■ A further 4% if the amount of tax (including penalties) remains unpaid seven days after the original due date.

■■ An extra 1% incremental penalty every month the amount owing remains unpaid.

Now help is on the way. A bill currently before Parliament that contains several changes to the way income tax is paid will remove much of the angst for thousands of small- and medium-sized businesses. One problem, though: the measures will not be implemented until April 1 next year.

In the meantime, here are some things you can do now to mitigate risk in provisional tax.

First, review your yearto-date profit. Knowing exactly how your business is tracking financially means you can figure out if you are paying too much (or not enough) provisional tax for the year and make necessary adjustments.

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ment is lower than the interest IRD charges for underpaid or unpaid tax, and hefty late payment penalties do not acrue.

No security or credit applications are required.

Intermediaries also allow you to pay provisional tax in instalments if that better suits your cashflow.

• Chris Cunniffe is the chief executive of Tax Management NZ.

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all @robhewettsff: Ni how @shenweiping and to all my new SFF comrades. We have done the deal, the goose is cooked, the mountain is climbed. As another great chairman – Mao Tse Tung – once said, ‘A journey of a thousand miles begins with a single step’. #thegreatleapforward @shenweiping @robhewettsff: It is good to finarry have this deal lesolved. Now, move over as you are sitting in my chairman’s seat cookie boy. Dealing with you leminds me of another famous Chinese proverb: ‘A needle is not sharp at both ends’. #rememberwehave51% @winstonfirstandlast: You can’t fool me.

It is obvious that the Chinese triggered the Kaikoura earthquake as a diversionary tactic to hide the fact that Shanghai Maling is taking over SFF a month early. #iwillneverletitgo @johnkeypm@therealdonaldtrump: Congratulations Mr President-Elect, from New Zealand. Can I interest you in signing the TPP? #prettyplease @therealdonaldtrump@johnkeypm: Thank you Prime Minister, it is always good to have the support of our very good friends from Australia or wherever. Unfortunately, the TPP is about as dead as Hillary Clinton’s political career. #sheaintcominback

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RURAL NEWS // DECEMBER 6, 2016

MANAGEMENT 25

Design key to indoor barn success NIGEL MALTHUS

CORRECT DESIGN is crucial to the success of indoor barn dairy farming, says farm consultant Keith Woodford.

Key elements are the correct sizing of cow beds, feeding systems and ventilation.

“Kiwi farmers sometimes go wrong with their DIY designs which ignore 50 years of overseas expertise relating to cow behaviour, cow movement, and air movement,” he explains.

“It is important to get it right first time, as solving the problems of a poorly designed barn are difficult without a bulldozer.”

Woodford was speaking during a visit to the Moa Flat dairy farm at Cave, South Canterbury, a field trips for attendees at the recent Grassland Association Conference.

Moa Flat can accommodate up to 300 cows under an indoor free-stall voluntary robotic milking system, with feed grown on the remainder of the 150ha (110ha irrigated) property.

It is run by Alex Ulrich with feed and grazing support from nearby Rock Farm, run by his parents Herstall and Aly Ulrich.

Both farms featured in the field trip.

Alex Ulrich says his indoor cows get a fixed ration of the same mix in the feeding bunker and at the robots – lucerne, maize, grass, barley, canola and fodder beet.

“We’re sitting at about 9.5kgDM/kgMS produced.

DairyNZ figures suggest that 12-14kgDM is average. So it’s very efficient milk they’re doing inside.”

Moa Flat milks yearround, calving and AI occurring every week.

About 60 dry cows graze outside and heifers are grown out on Rock Farm and returned to Moa Flat pre-calving.

Lucerne features heavily in the farm’s feeding plans, as it did at the conference itself, with several papers on lucerne man-

agement.

Herstall Ulrich says lucerne used to be grown mainly for conserving supplementary feed, rather than grazing.

Farmers moved away from it because of losses to aphids, sitona weevil and various fungal diseases, but are now returning to lucerne with the availability of more pest-resistant strains.

“We’re probably sticking our necks out a little in that respect.

Others have been in the forefront of growing lucerne for grazing as opposed to just conserving feed.”

Moa Flat aims for selfsufficiency in feed, and lucerne is “a core component of the diet,” Herstall Ulrich says.

Moa Flat has about 100ha in forage for harvest, 22ha in maize and the rest in lucerne or a lucerne/grass mix.

The lucerne is cut and baled about six times a year, yielding about 3000kgDM/cut. The farm runs all its own harvesting machinery.

Addressing the economics of barn dairy systems, Woodford says a key issue is off-season premiums paid for winter milk.

He says the future of barn systems will depend on leaching rules and whether NZ moves to consumer-focussed valueadded products requiring non-seasonal production.

NZ needs to research integrated feed systems specific to our conditions, and needs rural professionals trained in barnfarming systems, he said.

Another speaker at the Moa Flat visit was Nicole Phillips, of Irricon Resource Solutions, Ashburton, who said a housed dairy unit was difficult to model within Overseer, which “appears to assume” a high water use, similar to a conventional shed.

“In reality, a much lower volume of water is used, as only the robotic milking area is hosed down. The barn is cleared with scrapers,” Phillips says.

“This assumption, in my opinion, leads Overseer to overestimate effluent generated and applied to land, potentially inflating the applied nitrogen figures from effluent.”

A view inside in the robotic cow shed on the Moa Flat Dairy farm at Cave run by Alex Ulrich.

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RURAL NEWS // DECEMBER 6, 2016

26 MANAGEMENT

Goats can save the hill country The benefits of pastoral goats are largely ignored in New Zealand, but these animals could be, for some hill country farmers, as important for their survival as fertiliser and fencing on 6000 hill farms covering 10 million hectares now challenged by economics, environment, politics and climate.

Garrick Batten explains.

SINCE THE ill-conceived 1980s boom in goats, suitable animals, and the knowledge and systems for farming them -- stemming from research and confirmed by innovative commercial practices -- have resolved earlier husbandry, foot, parasite and escape problems.

We have learned that goats are a new and different animal, not suited to sheep-type solutions under our pastoral conditions. Simple, low cost, basic pastoral goat management maximises many benefits, not least an income from meat.

Best results target only one of these -- fitted to individually different farm contour, soils, climate, plants, other stock and skills, to enhance farm sustainability.

Why farm pastoral goats?

■■ Biologically control pasture and

■■

■■

scrub weeds with no chemical, labour, fuel or OSH issues. Strategies depend on species, severity, degree of control and timeframes.

Replace breeding cows to control pasture in specific situations for similar gross meat income but lower in capital, facilities and husbandry costs, no NAIT, TB and pregnancy testing or winter feeding. Cattle winter treading damage can reduce pasture by 50% and increase soil erosion, sediment and phosphate waterway contamination. Steep broken country causes cattle losses.

Goats do not like water, so sheep and goats would not require waterway fencing under environmental plans.

Biological gas emissions can be greatly reduced with pastoral goats.

Their higher condensed tannin diet

■■

■■

2016

reduces methane and, much more importantly, nitrous oxide is lower because of less concentrated and better spread urine patches than from any cattle.

Less clover eaten in mixed pasture increases content by 25% results.

More free N worth 2-5c/kg and less fertiliser N contamination. Clover is turbo feed for 10-30% quicker and higher kid finishing weights on mixed pasture, and twice as fast from ryegrass.

Pasture grooming above 50-70mm improves overall quality and growth rates of associated stock.

Goat pasture intake of 50-70% is set by height not volume for shallow browsing to include seedheads and uneaten grasses. The balance includes 15 other species not eaten by sheep and cattle as goats eat up

and down contours, rather than across.

■■ Goats readily eat plants including shrubs, that will become part of livestock feed grown for increasingly fickle dry spring and summer weather.

■■ Older farmers welcome reduced physical work: no flystrike, tailing, dagging, shearing, bearings or facial eczema when pastoral goats replace sheep. Less yard work and quicker and easier to muster. Similar meat income.

Goat meat ■■ As an end product from such objectives or as a specific product, commodity-based schedules and FOB export prices historically compare with other similar meats. A major goat processor currently has YL lamb $4.05/kg, and ungraded 9-13kg goat $3.90/kg. Same goat price to 19kg means on-farm slaughter management flexibility.

■■ USA with 50% shortfall in domestic supply is the only market we need.

Good 10kg CW store-condition kids have sold live at Texas auction for US$10-12/kg during 2016. Retail grass-fed goatmeat at US$18/lb is >

50% more than lamb.

Australian 2015 per kg FOB goat meat exports A$8.13/kg (USA A$9/ kg) matched NZ lamb at NZ$8.50/ kg.

■■ Processors need committed slaughter goat supplies to service and develop markets for better prices.

■■ Bank bottom line profit that could be $10,000 net from savings on weed control costs and improved production from other stock, doubled by extra end-product goat meat income.

• Garrick Batten is a goat farming authority through radio, TV, books, articles, field days and papers at conferences. He has commercially farmed goats since the 1970s. A former MAF regional technical and advisory services manager and national meat and fibre goat adviser, he has held several goat sector and industry positions.

After initiating goat weed control and cashmere developments, he developed Kiko goats exported to the world, now established as a major US meat goat breed. Since 2003 they have been refined as Kikonui, specifically for NZ hill pastoral conditions. More details at: www.caprinexnz.com ■■

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RURAL NEWS // DECEMBER 6, 2016

MANAGEMENT 27

Value or volume – farmer’s choice PAM TIPA pamelat@ruralnews.co.nz

WITH CONSUMER preferences changing, farmers are faced with a choice between intensive farming with all the technologies – ‘intensifying’, or going organic – ‘extensifying’, says Rabobank global strategist Dirk Jan Kennes.

“Consumer choices are transferred into value creation; you as a farmer have a choice to create value or create volume,” he told the Rabobank Farm2Fork forum in Sydney last month, attended by Rural News.

Major questions on this issue and a research initiative were sparked off for Kennes when he visited a US farmer last summer. He had a big operation in corn and soy and was top performing in skills, technology and financially.

The farmer told Kennes he stays in touch with all the technological developments, experimenting alongside traditional farming practices with innovation including precision farming and biological pesticides, which were working.

A big fast-moving consumer goods (FMCG) company asked him to ‘elevate’ a couple of his hectares to nonconventional farming.

The chief executive had promised big growth expectations and realised these were not going to come from volume or traditional products.

“This company wanted to create value, not from product characteristics per se, but by marketing different production processes,” Kennes explained.

“These included nonGM, non-antibiotic meat production and organic products.”

The farmer told Kennes his objective had always been to intensify to produce more with less, to feed people in the developing world who struggle to meet the recommended daily calories intake.

The farmer asked, “Is agriculture becoming a battlefield between the

affluent consumer – US, Europe, lately more and more Asia – versus the 800 million people in the developing world who still need to scramble for the daily calories intake?”

Back in his office Kennes and his team started a research project to try to begin answering the question, “Is global agriculture starting to become a battlefield between the consumer and the poor fellow in Africa?”

They looked at the US corn market to get a perspective which could apply to other agricultural sectors in the western world. The US is the biggest global producer and corn is a cornerstone crop.

The research pointed to a 2% decrease in US corn hectares over five years. Disruptive trends will cause the US corn farmer to think about transferring, consolidating and reducing corn hectares.

Those hectares will migrate to Latin America and the Soviet Union as it is cheaper to put more corn on the market from those regions.

Technological innovations will markedly increase the planting density of corn in the US: 30% more will come from the same area. US farmers will be forced to innovate technologically to compete with Latin America and the Soviet Union. Less land will be in corn because of demand.

“China has options in food security,” he says.

“They can import corn and transfer corn into pork meat… or they can try to improve the efficiency of the corn-to-pork transfer in their own livestock industry. This is the choice between creating value at the US farmgate versus creating value at the Chinese livestock farmgate.

“I know where ultimately China will put its bet: it’ll be on improving the efficiency of livestock farming there. That will take out a lot of future corn demand currently in all the models of our clients

and the models the bank uses.”

Based on preliminary results he believes as a farmer you have a choice and you need to choose.

“At the global master class one of the farmers said, ‘In the past we could make money by just working hard. Today

Rabobank global strategist Dirk Jan Kennes speaking at the recent ‘Farm2Fork forum in Sydney.

we can make money by just working hard and having a bit of luck in the market. Tomorrow it’ll be work hard and have a bit of luck in the market, but you will also need strategy.

“That is the main message I want to give to you today,” Kennes

concluded. “Consumers want choice and consumer choices are transferred into value creation; you, as a farmer, have a choice to create value or create volume.” @rural_news facebook.com/ruralnews

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RURAL NEWS // DECEMBER 6, 2016

28 MANAGEMENT

Right advice at the right time pays off MACKENZIE COUNTRY high country farmer Andrew Hurst has not stood still since he took over the lease of two adjoining farms four years ago.

Run as one unit, the farms belong to his parents, covering 2300ha from pasture to tussock and into high alpine and mountain terrain.

Hurst is committed to

developing the land and building stock numbers, to put him in a position where he and wife Jo can try to buy the business outright.

“You get out of your

Andrew Hurst and Ravensdown agri manager Hannah Wallace checking the soil.

land what you put into it; you can’t cut corners,” he says.

Hurst’s sheep and beef operation runs 3300 Coopworth ewes, 900 hoggets and 300 angus beef cows; it finishes all the heifer calves and most of the lambs. He is also reclaiming about 10ha a year and continually refencing.

The harsh climate of the Mackenzie Country has him spending all summer preparing winter feed to get the animals through.

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We can’t afford to have a failed crop as we rely heavily on winter feed and we haven’t had one yet. Whatever it needs – direct drilling, spraying early, two sprays, urea – if it needs capital, it happens. It can be tempting to try to reduce costs by cutting corners on drops, but it doesn’t work and you end up paying for it.”

The key is you get what you pay for. Ravensdown’s attention to detail and knowledge has headed off a few things by being onto it early. big problem in the Mackenzie Country: it has acidic soil so a lot of lime is required. We get good summer rainfall which is in our favour, however we’ve a lot of weeds.

But if you’ve done everything right, when the rain comes the crop will grow. To get the best silage stocks and crop growth we’re continually soil testing, to build up fertility.”

While his father always had a good handle on soil testing, Hurst has moved to develop the farm using SmartMaps and aerial technology bought from Ravensdown.

“We’ve come a long way in the last three years. This is only our fourth season on our own and we’re starting to get somewhere now. We’re running 400 more ewes and finishing more cattle with new pastures. The ewes are the best they’ve ever been this season due to high performing crops.”

Hurst has spent a lot on continually monitoring and assessing the business, which he says has paid dividends.

“I try to do everything properly. We don’t cut corners on cropping, fert, agri chemicals or seed. If I get a recommendation from Ravensdown I do it.

Hurst says a good example was last year, challenging for everyone because of dry windy conditions.

“But we had good crops and lambing and it ended up being a great season for us. The key is you get what you pay for. Ravensdown’s attention to detail and knowledge has headed off a few things by being onto it early. Twice last year bugs were moving in but Ravensdown’s seeds technical manager for the South Island, Lisa Chapman, made an early call and we pretty much saved the kale crop from nysius fly, which can decimate a paddock if you leave it.

“A month later Lisa and her colleague Andre Callaghan advised on putting on the urea at the right time and we ended up getting a prize in the winter feed competition for that same kale crop.”

Hurst says with just him on the farm, and a small amount of casual labour, it can be busy place.

“I can’t be everywhere all the time so I have to rely on good advice and product. You can’t afford to let your guard down when it comes to winter feed. It’s well worth doing it properly for tonnage.”

RURAL NEWS // DECEMBER 6, 2016

ANIMAL HEALTH 29

Funding boost for beef genetics research NEW ZEALAND beef genetics research is about to get a shot in the arm thanks to a landmark trans-Tasman collaboration.

Beef + Lamb New Zealand (BLNZ) Genetics and Meat and Livestock Australia (MLA) say they will spend $5.2 million over three years on joint beef research projects.

All the projects, here and in Australia, will be overseen by BLNZ Genetics.

General manager Graham Alder says the collaboration means every $1 of NZ farmer levy turns into $3.50 of research funding.

“The R&D needs of NZ and Australian producers are well aligned.

It makes sense for scientists on both sides of the Tasman to work together to solve common problems.

“Beef genetics research in NZ has been underfunded for 30 years.

This partnership

WHO'S INVOLVED? In Australia, the University of Adelaide (prof. Wayne Pitchford) and the University of New England’s animal genetics and breeding unit (Dr Robert Banks and Dr Matt Wolcott).

In New Zealand, AbacusBio (Dr Jason Archer) and Massey University (prof. Dorian Garrick).

Commercial beef farmers and bull breeders will also be heavily involved, along with Angus NZ and the NZ Hereford Association.

Stock up.

Australian and New Zealand beef breeders, farmers and science providers met in Albury-Wodonga this month, as a landmark trans-Tasman collaboration kicked off. The trip included a visit to Wirruna Poll Herefords, a seedstock producer providing bulls to commercial farmers.

means research can progress and the results communicated to breeders and commercial farmers many years earlier.

For Australia, it means faster progress and an opportunity to advance projects that otherwise may not have gone ahead.”

The work will centre on the Trans-Tasman beef cow profitability programme, which aims to balance desirable mater-

nal traits in beef cows with the finishing performance of calves and their ability to meet quality carcase specifications.

The programme will develop genetic measures for better describing the important physical attributes of a cow (size, body condition and her ability handle fluctuations in feed availability), fertility indicators in heifers and selection tools for easy decisionmaking. It

will also investigate how different environments and farm systems in both countries impact on the balance of traits required to produce an economically efficient cow.

Adler says this research will also help underpin advancements in genomic technology.

The research will draw on existing projects in commercial farm settings. In NZ, BLNZ Genetics’ beef progeny test and mater-

nal cow project will feed into the research. In Australia, inclusion of the Angus sire benchmarking programme and Hereford progeny test are being considered by the respective breed associations, with solid initial interest.

The programme began with a joint meeting of Australian and New Zealand beef breeders, farmers and science providers on November 14-15 in Albury-Wodonga.

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RURAL NEWS // DECEMBER 6, 2016

30 ANIMAL HEALTH

Warm, wet weather may signal FE WITH NIWA signalling warm, wet conditions across the North Island over December, farmers are being encouraged to take preventive measures against facial eczema (FE).

FE is estimated to cost the country $200 million annually as affected stock suffer liver and skin

damage, reduced fertility, reduced milk and meat production.

Above average temperatures and rainfall are ideal conditions for the fungus, which causes FE to thrive. Spore production occurs when soil temperatures exceed 12 degrees for three consecutive nights and soil

“Matching the rotation to feed supply will help ensure grass growth is optimised.” moisture is favourable or air conditions are humid.

“After reduced milk production through the spring, the last thing farmers need is another potential brake on it as

summer progresses,” says SealesWinslow science extension officer, Natalie Hughes. “Prevention is the best approach and starting early with zinc supplementation is

a good tactic to get the best protection.

“It takes time to build up protective levels of zinc in animals, so dosing should start two to three weeks before you would expect spore counts to rise. Given NIWA’s outlook for warm wet conditions through to the end of the year, supplemen-

100% of farms have toxoplasmosis present.

88% of farms have campylobacter present.

So what are the odds?

FE causes affected stock major skin, liver and production issues.

tation could be needed in early December.”

Hughes says zinc can be sprayed on pasture, dispensed in water, given in boluses or mixed into feed. However, she warns that long-term use can lead to copper deficiencies in the herd’s diet, which also leads to lost production.

“This can be overcome by using a product like SealesWinslow ZincMax+ which contains organic copper, as well as a peppermint flavouring

to offset the bitter taste of zinc which can often make cows reluctant to drink the dosed water.”

Hughes also advises farmers that good pasture management can help guard against rising spore counts.

“Matching the rotation to feed supply will help ensure grass growth is optimised,” she explains.

“When grass becomes too long, dead matter can accumulate at the base of the sward which will increase FE risk.”

WHAT TO LOOK FOR • The first sign of facial eczema in cows is a drop in milk production soon after the intake of toxic spores • Cows are restless at milking time, seek shade and lick their udders • Another drop in production occurs when physical symptoms become obvious • Check unpigmented or thin skin which thickens and peels because of sun sensitivity.

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RURAL NEWS // DECEMBER 6, 2016

MACHINERY & PRODUCTS 31

ALO lifts its game MARK DANIEL markd@ruralnews.co.nz

SWEDISH MANUFACTURER ALO, famous for its Quicke and Trima brands, is credited with building the first detachable loader in the late 1950s. It has gone on to capture a huge chunk of the global market, last year building 35,000 loaders and 45,000 attachments, claiming a 30% share of the premium loader market.

At a recent factory event the company showed it wasn’t resting on its laurels, opening a new automated welding line costing SEK 30 million ($4.5m). This line uses 24 robots -- 14 for welding and 10 for lifting, which can position all 24 pieces needed to manufacture a loader in one movement and remove

the need for time-consuming jig set-up.

Also on show was a new Q series loader, which will replace the current Dimmension series when it is launched at the SIMA 2017 show in Paris. Said to be tougher and more user-friendly, it is designed for tractors from 60-300hp. The key components are cast or forged, which helps optimise weight and improve

lift capacities.

Re-design sees the ‘knee’ of the loader boom lowered by about 10mm, which combines with a lower cross-tube to improve visibility. A newly designed headstock also follows this theme, with the centre bar removed, improving the implement attachment view from the driver’s seat.

Part of the design brief

also called for more durability and an increase of up to 50% in the expected working life of the loader.

This is achieved by beefing up key components such as the main loader arms which are spaced about 10mm wider, and are made from steel with greater wall thickness and higher grade.

Key pivot points now have over-sized, 40mm pins, and response times

should be improved with the use of 0.5in diameter hydraulic lines.

Overall, lift heights are greater by 70-140mm across the range, and the option of new highlift versions should make loading high-sided trucks or trailers a breeze.

The traditional Quicke grey colour scheme has been dropped for a matte black finish, giving a fresh look.

The company has raised its game in high tech by complementing its industry leading thumb operated joystick (called LCS) with the option of the new Q-Companion system which will monitor the headstock position to aid hook-up of attachments, offer on-board weighing and monitor usage and service intervals.

CWH CLEANS UP AWARD THE RECENT EIMA 2016 event, held in Bologna, Italy, was a success for CNH Industrial, two of its brands taking top honours in the Tractor of the Year 2017 awards.

Judged by European trade journalists and offering four awards -- Tractor of the Year, Best Utility, Best Specialised and Best Design – this kudos does much to bring the products’ details to a wider agricultural audience.

Top of the pile, and taking the premier title of Tractor of the Year, was the recently launched Case IH Optum 300CVX, beating off strong competition from Fendt, MF, Deutz Fahr and Zetor.

The judges commented on its design focus -lower weight and less fuel consumption.

Built at the Case IH plant in St. Valentin, Austria, the tractor is said to have best-in-class powerto-weight ratio in the important 250-300hp sector, while still offering a compact, manoeuvrable an package.

At the other end of the spectrum, New Holland picked up the title for Best Utility tractor with its T5.120 machine, built at the company’s Jesi plant in Italy. The new T5, Tier 4 B workhorse has been extensively redesigned for livestock farmers looking for a mid-power tractor. The nimble unit is said to be ideal for dairy or mixed operations and can do a range of duties while offering best-in-class operator comfort. – Mark Daniel

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Tow and Fert saves on fert costs ™

Given the current financial conditions for dairy farmers around the world, managing input costs without decreasing production is the only logical way to navigate through this tough time. Technology developed in Dannevirke is becoming noticed as breakthrough technology with research agencies in other pasture grazing markets around the world. Tow and Fert, designed and manufactured by Metalform, has the ability to either reduce fertiliser input costs without impacting pasture yields, or maintain fertiliser inputs and improving dry matter and protein production.

As well as proven research from NZ and a dairy co-operative in NSW Australia, an independent dairy specialist in the UK is the latest company to prove the efficiency of Nitrogen when applied in a foliar form. The trials were performed when applying 33%, 66% and 100% of the typical rate of nitrogen which was 25kg/ha, 50kg/ha and 75kg/ha of foliar applied Urea compared to 75kg/ha of granular Urea. Even when the foliar urea was applied at 33% of typical application rate, the DM response was only 10% less DM per hectare. At an application rate of 50kg/ha which was 66% of the control rate, the increase of DM yield was exactly 50% higher. Based on this research, now consistent from 3 different research trials it can be concluded the possibilty of acheiving the same DM response with only 1/2 the amount of urea.

To put this into a reality from a profitability point of view, on a typical farm of 150 hectares milking 400 cows, a typical application of granular Urea at 80kg/ha 6 times a year would equate to approximately 72 tonne of Urea, $43,000. If it were to be dissolved and applied as a foliar spay, then the cost would be around $18,000, which is an annual saving of $25,000. From an environmental point of view, the N escaping into the environment, as ammonia, leached beyond the plant’s root zone or as the greenhouse gas, Nitrous oxide, would be largely reduced because the Urea should not enter the soil but is directly absorbed by the leaves.

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As grass is the cheapest form of feed, it is ever so important to ensure that we are growing the most nutrient rich pasture rather than spending on supplement feed and the Tow and Fert can be a key part of reducing input costs in the current economic climate without decreasing pasture yields.

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RURAL NEWS // DECEMBER 6, 2016

32 MACHINERY & PRODUCTS

Popular harvester just got better MARK DANIEL markd@ruralnews.co.nz

NEW HOLLAND has launched the next generation of its CX conventional straw walker combine harvesters – the CX7.90, CX8.80 and CX8.90 machines, the latter claiming the title of the highest capacity conventional combine in the world.

Fitted with Hi-eSCR engines, the CX7.90 offers 374hp, the CX8.80 has 401hp and the flagship CX8.90 boasts a maximum of 490hp. The range is offered with a choice of header sizes from 5.18 to 12.5m.

Originally launched in 2001, the machines have evolved to encompass a range of NH technologies such as OptiSpeed, Opti-Clean and Opti-Fan systems to maximise output and relieve the oper-

ator of needing to make continual adjustments.

Straw walkers are set automatically by the Opti-Speed function, by matching their speed to the volume of crop being harvested. Additionally, the straw walkers automatically slow down or speed up on uphill and downhill gradients respectively to keep grain in the cleaning area and not lost over the back of the machine.

Opti-Clean improves cleaning by up to 20%, by optimising the sieve stroke and stroke angles, with a longer stroke and steeper sieve box angle intended to keep more material airborne for maximum cleaning efficiency.

Opti-Fan further improves cleaning by adjusting fan speed according to the incline being harvested. Set to optimum on the flat, automatic adjustment

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The New Holland CX8.80 harvester in action.

on slopes ensures a cleaner sample always, without the need for operator intervention.

In the threshing segment, sectional concaves make switching between crops a breeze – such as small grains to corn – the manufacturer suggesting the task will take about 20 minutes, rather than the more typical five-six hours, which should be well received by contractors or multi-crop farmers.

Grain capacity is 10,000, 11,500 and 12,500L on the three machines, respectively, the larger CX8.90 having a grain tank with folding

covers aimed to mitigate moisture ingress, particularly as harvesting moves into the late evening. Unloading time is about two minutes using the unload system rated at 125L/sec.

The CX8.80 and CX.90 models can be optioned with SmartTrax rubber tracks and Terraglide suspension which improve traction and ride comfort and help reduce field compaction issues.

A transport speed of 40km/h at a reduced engine speed of 1400rpm will contribute to fast shift times and reduced fuel consumption. www.newholland.co.nz

ALL BACK, ALL ROUND IN GRASS THE EIMA 2016 event in late November brought out the big guns, notably Maschio Gaspardo, from Campodarsego, Italy, whose stand was fully loaded with machinery for livestock and arable farmers.

Like many businesses re-organising their product ranges to become global players, this maker showed machines intended to fill perceived gaps in the market, and hinting at the company’s future.

This will see it developing and making products in its 11 factories rather than growing the business by acquisition.

Rural News understands that for livestock farmers it will be making wider mowers, rakes and tedders, and for arable it will place more emphasis on minimum-tillage.

In a move likely to get Kiwi users salivating, the company showed its Black Edition Extreme 365 HTI variable chamber baler, built by the Feraboli arm of the company.

RURAL NEWS // DECEMBER 6, 2016

MACHINERY & PRODUCTS 33

When you need a real truck!

MARK DANIEL markd@ruralnews.co.nz

FOR A ‘proper’ truck you can’t look past the Toyota Land Cruiser 70 series.

That’s reinforced by its heritage which typifies endurance and performance dating back to 1951 when the BJ Series first saw the light of day.

That BJ series evolved into the LC 20 series of 1955; no doubt prompted by copyright infringement of a certain Willys product it then morphed into the LC40s of 1960, then the LC heavy duty series of 1984 and now the truck we know today.

crossmembers number seven and the meaty leaf springs gain Teflon inserts, all combining to give a much tauter feel on the road.

The grunty 4.5L V8 motor is a peach, with 151kW at a lazy 3400rpm and 430Nm torque all the way from 1200 to 3200rpm. Emission stats now meet Euro 5 with the addition of a diesel particulate filter, and endurance is improved in the single cab version by the addition of a 130L fuel tank.

The 5-speed manual transmission has the familiar 2H, 4H and 4L

That love affair has seen 7.9 million trucks produced at the Yoshiwara plant, which continues to make about 14,000 units per month.

Currently wearing the mantle of the longest production series in Toyota’s history, the LC 70 is defined by its ladder chassis and rigid, leafspring suspension which cocks its nose at ‘soft roading’, but has become a synonym for workhorse in extreme conditions such as mining, logging and agriculture.

That love affair has seen 7.9 million trucks produced at the Yoshiwara plant, which continues to make about 14,000 units per month, lots exported to the Middle East. Closer to home, Australia and NZ is the third-largest export market and since 2005 has taken about 94,000 vehicles, which suggests the Land Cruiser’s reputation is well proven in this region.

The latest incarnation of the LC 70 sees little outward change apart from a larger bonnet scoop to allow better clearance for the intercooler; but beneath the skin the changes are aplenty.

At the heart the ladder chassis has become much beefier -- 21% deeper and 63% wider. The

choices and combine with front and rear diff locks for the best off-road performance.

The addition of dual automatic locking hubs removes the need to stop and engage before tackling tough stuff.

A list of safety upgrades sees the 2017 machine offer Vehicle Stability Control (VSC), Active Traction Control (A-TRC) and Hill Start assist (HAC), and all models have reversing cameras. ABS now comes as standard, working at speeds down to 18km/h in 4H and right down to 4km/h in 4L, making control a breeze in tricky conditions and undoing the mantra of keeping your feet off the pedals on downhill sections.

These upgrades see the single cab version now meeting 5-Star ANCAP safety ratings and it has side curtain and knee airbags to keep users safer.

The range on offer now includes single cab and double cab in LT or LX specification grades, and an interesting LT wagon, supplied as an empty space to allow customising for desired

roles.

As expected during a brief test by Rural News, there are no nods to comfort in the LC70 series, but the indications

that this truck remains tough and has got a whole lot smarter and safer; it should serve its users well for many more years.

The new Landcruiser 70 series double cab model.

END OF YEAR STOCK CLEARANCE JOHN DEERE 8360RT 2013, 360Hp, 4443 hrs with an Infinitely Variable transmission and 4 SCVs.

JOHN DEERE 8360R 2013, 360Hp, 3446 hrs with an Infinitely Variable transmission, TLS and 5 SCVs

JOHN DEERE 7530 2007, 180Hp, 8498 hrs with an AutoPowr transmission, command arm, 16 weights, Field Office & Power Beyond.

REF: 503110 WPK

REF: 502898 HST

REF: 501847 HST

$205,000 +GST

$220,000 +GST

FREE FREIGHT TO T HE NEARE MAIN CEN ST TRE

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JOHN DEERE 7430 PREMIUM 2008, 166Hp, 9084 hrs with an Infinitely Variable transmission, duals, 4 SCVs & Greenstar ready.

JOHN DEERE 6130R 2014, 130Hp, 1720 hrs, an AutoQuad transmission, 3 function electric joystick, 3 SCVs and loader ready.

JOHN DEERE 6330 2011, 105Hp, 1400 hrs with a PowrQuad transmission, Stoll NSL 30.1 loader, Power Beyond and 2 SCVs.

JOHN DEERE 5080GV 2012, 80Hp, 658 hrs with a 24 x 12 transmission and 4 SCVs.

REF: 502416 HST

REF: 503203 WPK

REF: 502918 WPK

REF: 502862 HST

$52,000 +GST

$112,000 +GST

$69,000 +GST

$51,000 +GST

FENDT 716 2011, 160Hp, 4761hrs, duals all around and 4 SCVs.

NEW HOLLAND TL90 2002, 90Hp, 5300 hrs with a Shuttle Shift transmission, Mailleux MX80 loader and 2 SCVs.

VALTRA 103 2015, 130Hp, 300 hrs with a Shuttle Shift transmission, Valtra 41 loader and 3 SCVs.

JOHN DEERE 960 BALER 2012, 4647 hrs, approximately 15,500 bales, 2.2M pickup, MaxiCut with 13 knives.

REF: 503205 HST

REF: 502849 HST

REF: 502967 WPK

REF: 503175 HST

$115,000 +GST

$27,500 +GST

$88,000 +GST

$59,900 +GST

Contact CERVUS EQUIPMENT today HASTINGS - 06 879 9907 1318 Omahu Road 0800 333 734

WAIPUKURAU - 06 858 8822 Peel Street cervusequipment.co.nz

CONDITIONS APPLY: All prices exclude GST. Price, hours and condition are accurate on day of print and are subject to change without prior notice.

Finance available through John Deere Financial Ltd to approved commercial applicants only. Fees and charges apply. If not amended or withdrawn early, offer expires 31 December 2016.

DAYTECH

RURAL NEWS // DECEMBER 6, 2016

34 MACHINERY & PRODUCTS/RURAL TRADER

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WITH MANY of the world’s tractor and machinery markets in decline because of poor commodity prices, major manufacturers are keeping an eye on emerging markets where figures are far from disappointing.

Between 2010 and 2015 tractor imports grew by 800% in Cuba, 400% in Vietnam, 250% in Ethiopia, 240% in Kenya, 210% in Cambodia and 190% in The Philippines.

For the 2016 calendar year, figures produced by Agrievolution show that in the first nine months European numbers fell 6%, China 29%, Brazil 17%, Japan 24% and Russia 19%.

On the plus side of the ledger, India gained 17% -- it suffered a huge decline in 2015 -- and the US is up 3% (but it saw a 22% decline in the 100hp+ sector).

Studying the big players, analysts suggest India will close the

year at about 600,000 tractors, China at 400,000 and the mighty US at just over 200,000.

By contrast highly mechanised Europe will struggle to make 160,000 tractors.

Those trends are likely to continue into 2017,

with estimates suggesting large stocks of cereal grains are still a problem in the US, Australia, Canada, China and Kazakhstan.

Closer to home, the Australian market seems to be on a roll, heading for the magical 12,000 tractor mark, with October showing a rise of 15% over last year. Big-ticket items like tractors over 200hp are up 12% year to date, and the all-important 100-200hp segment has gained 18%.

Sales were up across

the country, NSW appearing as the star with overall sales up 19% YTD; Queensland’s October figures were up 44% on the previous month.

A major gain is being seen in the combine harvester market with YTD sales of 727 units, already up 100 units on last year.

The general outlook is for continuing sales, the poor weather prompting many farmers to buy second-hand units to deal with the late harvest rather than waiting for contractors.

NZ TRACTOR MARKET TRUCKS ON TRACTOR SALES remain buoyant, indicating a positive outlook in farming, says NZ Tractor and Machinery Association president Mark Hamilton-Manns.

He says in the year to date (September 30) tractor sales were 2381, much like 2012 (2389), showing that overall farming is stable, weathering volatility in the global dairy markets.

TAMA’s figures show sales only declined slightly overall, by 6%, on the same period in 2015. Several segments and regions saw sales increases such as the horticulture

and viticulture industries in Northland, Auckland, Bay of Plenty, Hawke’s Bay and Nelson.

“Growth in horticulture and viticulture looks set to continue,” Hamilton-Manns adds.

“Tractor sales in the Bay of Plenty rose 50% in the last year with the success of kiwifruit and avocado. Sales in the Nelson region rose 30% driven by the upbeat viticulture and horticulture sectors.”

Hawke’s Bay sales rose 16%, just the start of an increase as orchardists expect to triple the

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number of apples planted in the next few years.

Hamilton-Manns says that tractor makers are positive about 2017, spending large on R&D to improve technology, reduce maintenance costs and meet emission standards.

Sales to dairy farmers (100120hp) declined overall in the last year by 17.5%, but many are still buying.

“Dairy farmers are focused on good value for money when buying tractors... the best interest and maintenance deals”.

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