Rural News 02 October 2018

ANIMAL HEALTH

MACHINERY & PRODUCTS

NEWS

Gumboot test a good feed pad sign. PAGE 40

Big rake impresses wary contractor. PAGE 45

Partial victory for fruit growers.

PAGE 14

TO ALL FARMERS, FOR ALL FARMERS OCTOBER 2, 2018: ISSUE 662 

www.ruralnews.co.nz

ANIMAL HEALTH

MACHINERY & PRODUCTS

NEWS

Gumboot test a good feed pad sign. PAGE 40

Big rake impresses wary contractor. PAGE 45

Partial victory for fruit growers.

PAGE 14

TO ALL FARMERS, FOR ALL FARMERS OCTOBER 2, 2018: ISSUE 662

www.ruralnews.co.nz

Meats bullish outlook PETER BURKE peterb@ruralnews.co.nz

DESPITE THE unknowns of Brexit and the US-China trade war, New Zealand’s sheep and beef farmers are pretty bullish about the future.

Research by Beef + Lamb NZ shows that 70% of beef farmers and 64% of sheep farmers are positive about their industry.

BLNZ chair Andrew Morrison says the confidence comes with strong prices and a favourable $NZ. He cautions that traditionally August is the time when prices are high.

“While we’re fortunate to be enjoying high prices for our beef, lamb, and

such as greenhouse gas mutton at the moment,” emissions and water. But Morrison told Rural News. if you get trade protec“We need to be mindful tionism, it shuts you out that these aren’t guaranof those key markets and teed longer term, even that can stymie us at the though there are solid last hurdle.” indicators that global Morrison says BLNZ, demand for NZ’s sheepas an organisation, has meat and beef will remain Beef + Lamb chairman been proactive in dealing strong.” with trade issues, e.g. its He says the implica- Andrew Morrison. tions of drought in Australia, France strategy ‘refresh’ that set specific priand Ireland also need to be taken into orities in trade and other areas of the business. Demand for grass-fed lamb is account, as do global trade issues.

“The other issue on their radar is strong and it is moving into the high the rise of alternative proteins. You end of the market.

But although lamb is now doing can have all your good production systems back home and tick all the boxes well, no guarantees come with any

market. And while sheep and beef farmers are bullish about the future they are watching for challenging headwinds.

“The sheep and beef sector is well positioned to respond to these challenges,” Morrison says.

“We have the Taste Pure Nature country-of-origin brand which will promote NZ’s premium grass-fed red meat overseas.

“We’re partnering with central and local government to develop better regulations that work for farmers and the environment, and we’re helping farmers to improve their environmental performance.”

• High prices hit Alliance, page 6

A fine thing Merino wether hoggets enjoy a post-shearing feed on Cluden Station, at Tarras in Central Otago.

The 12,000ha station is run by the fifth-generation Purvis brothers, Ben and Sam – sons of the late All Black Neil Purvis. Ben says the hoggets get a month or two of fattening up for the works following their September shear.

The Merino wool prices and lamb prices are both very good at the moment, which he says is ‘encouraging.’ – Merino prices flying high, page 5

TATUA TOPS – AGAIN SUDESH KISSUN sudeshk@ruralnews.co.nz

WAIKATO MIK processor Tatua has topped the 2016-17 milk payout stakes.

The co-op last week announced a final payout of $8.10/kgMS to farmer suppliers, after retaining 52c/kgMS. It finishes well ahead of the rest of the major processors; Fonterra suppliers will get a final payout of $6.79/kgMS including a 10c dividend.

Maori-owned Miraka will pay $6.80/kgMS and Synlait $6.78/kgMS, respectively; both payouts include 13c in incentive payments.

Open Country Dairy, the secondlargest processor, will pay out on average $6.71/kgMS to its suppliers.

Struggling Westland Milk, Hokitika, holds the wooden spoon after announcing a final payout of $6.07/ kgMS (after retaining 5c).

Tatua chairman Stephen Allen says the co-op had a good year, achieving record group revenues of $357 million and earnings of $127m.

“Our focus on growing our value-add businesses has contributed significant additional revenue and our bulk ingredient product mix has served us well,” he says.

Allen says in deciding the payout Tatua has sought to balance between supporting its shareholders and its need to reinvest for its future.

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ON E N A M E CO V E RS IT ALL

RURAL NEWS // OCTOBER 2, 2018

NEWS 3 ISSUE 662

www.ruralnews.co.nz

Famers respond to M.bovis PETER BURKE

NEWS ������������������������������������� 1-25 MARKETS ��������������������������26-27 AGRIBUSINESS �������������� 28-29 HOUND, EDNA ���������������������� 30 CONTACTS ����������������������������� 30 OPINION ��������������������������� 30-33 MANAGEMENT ���������������34-37 ANIMAL HEALTH ������������ 39-41 MACHINERY AND PRODUCTS ���������������������� 42-48 TRAVEL / RURAL TRADER ���������������������������� 49-51

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 80,580 as at 31.03.2018

peterb@ruralnews.co.nz

AT LEAST 50% of sheep and beef farmers have made changes to reduce the risk of their stock getting Mycoplasma bovis, says Beef + Lamb New Zealand.

It did a survey that showed 57% of farmers have taken precautions against M.bovis, while 71% know a lot about how to protect their stock from the disease.

About 33% of farmers say they’ve set up a buffer zone between them and their neighbours’ stock, and are communicating with their neighbours

CREAMING IT! FROM PAGE 1

O’Connor says it’s great about stock on the boundto see farmers taking proary. active action against the Others reported having spread of M.bovis. improved their yard The eradication prohygiene and not buying gramme is going to plan calves or cattle this year and there are no surprises because of concerns about because all the infections the disease. had so far been traced The remaining farmback to one farm, he said. ers who had made few Agriculture Minister “We are continuing or no changes because of Damien O’Connor M.bovis were mostly running closed with the bulk milk sampling and by or isolated systems, such as breed- mid-November we will have an idea ers, or were sheep farmers who had whether it is just a single infection or a single strain and therefore can be no cattle.

Agriculture Minister Damien eradicated.”

“Our gearing (debt divided by debt plus equity) at year-end lifted slightly from 35% last year to 37%, but will normalise back to around 35% or less as we move further into the current season.

While Tatua shareholders rejoice, shareholders of Westland Milk endure the lowest payout of all.

Westland Milk chairman Pete Morrison says the co-op achieved $3.3m gross profit last season on the back of the 5c retention.

Morrison says the Westland board acknowledges its milk payout isn’t competitive and is focussed on achieving parity in future.

Biosecurity promo to hit screens PETER BURKE peterb@ruralnews.co.nz

THE MINISTRY for Primary Industry has launched a $1.5 million television and social media campaign to get New Zealanders to take biosecurity more seriously.

The publicity campaign is called Ko Tatou – ‘This is us, it takes all of us to protect Aotearoa’.

It is aimed at telling the wider public that biosecurity affects everyone, says Agriculture Minister Damien O’Connor.

He says a survey last year showed that only 2% of NZers think biosecurity affects them.

“It’s clear that people don’t realise that the plants, flora and fauna, and the systems needed to produce our

food and keep our economy going depend upon good biosecurity. This is a wakeup call for everyone,” he said.

The head of Biosecurity NZ, Roger Smith, told Rural News that over the last couple of years MPI have been looking at ways to “re-engage NZers on the issue of biosecurity” and to get them to take some personal responsibility for what comes across the border into the country.

He says Biosecurity NZ had commissioned a television commercial and had recruited prominent people for a social media campaign to target a range of audiences.

“In the television commercial we are using a kuia (woman elder) from Auckland, who is reflecting on her life, looking back, and on the things

she loved, the food, and how fragile our ecosystem is. She also talks about the need to take care of the environment for future generations.

“We want people to understand that biosecurity is not just at Auckland airport or at a farm gate or that it’s an issue only for dairy farmers and Horticulture NZ. We want 4.7 million NZers to understand that biosecurity impacts their lives and they need to take some responsibility for it.”

Smith says the commercial hasn’t got too many farmers walking around in it, but it has some. The television advertisement is not an ‘in your face’ biosecurity campaign. The social media campaign will support the television commercial.

“We have a lot of key influenc-

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“They are all doing their own individual 30 second videos which will target people in their particular [fields of interest]. These videos will air only on social media, not on television. The aim is to get those people to tell their story about the importance of biosecurity.”

Smith admits that he’s not going to be able to change people’s behaviour in one day. But he intends over time to have a very aware NZ population that takes responsibility for, and cares about, biosecurity.

“For me success will be when we do another survey and more people say biosecurity is relevant to them,” he says.

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RURAL NEWS // OCTOBER 2, 2018

4 NEWS

Farmers back Fonterra’s rescue plan-chair claims Tough times. Fonterra’s CFO Marc Rivers, chair John Monaghan and CEO Miles Hurrell fronting at this year’s annual result briefing.

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sudeshk@ruralnews.co.nz

FONTERRA CHAIRMAN John Monaghan says farmers are backing a performance review of all co-op investments.

Farmers also support the appointment of Miles Hurrell as the interim chief executive, he says.

Speaking to Rural News after a round of farmer shareholder meetings last month, Monaghan said farmers are confident the co-op is in good shape.

Fonterra’s poor financial performance - the co-op recorded its first-ever loss last financial year -was raised by farmers during the meetings attended by Monaghan, Hurrell and chief financial officer Marc Rivers; about 2000 farmers attended.

The loss-making investment in the Chinese baby food company Beingmate was also top of the agenda during the question and answer sessions.

Monaghan says Fonterra farmers

are keen to put the disappointing results behind them but wanted to know what steps are being taken to lift performance. He revealed that the Beingmate saga will be resolved first; a senior management team was in China for talks with Beingmate bosses.

“We have given farmers no definite timeframe but I’ve assured them that Beingmate is the first item on the list,” he said. “Our farmers are very interested in the performance review; we will keep them updated and no one will die wondering.”

Monaghan says while farmers were concerned about the $439 million write-off in Beingmate they were happy with the China business.

“While Beingmate has been disappointing, overall we have grown revenues from the China business to $4 billion.”

Federated Farmers Waikato president Andrew McGiven says the ball is now firmly in the directors’ and senior management’s court as to how they review and revise the strategy to reverse last year’s result.

“The key to this will be an improved communication and public relations strategy towards shareholders and suppliers to ensure there is improved confidence from the grassroots so that milk supply is guaranteed.”

A South Canterbury farmer and candidate for the Fonterra board election, Leonie Guiney, says she expects the new leadership team to act on loss-making assets. She says shareholders seemed prepared to give Hurrell a chance and she was encouraged by his presentation at a shareholder meeting in Ashburton.

“I would expect action on lossmaking assets in the near term if he is to be able to strengthen our position to invest where we have advantages,” she says.

Guiney says she heard no indication that shareholders favour splitting up the co-op as some commentators have suggested.

“That is not the solution; I heard a desire for change in the way we operate not to abandon the co-op model.”

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A PROPOSED irrigation scheme in South Canterbury has been dumped after losing Government and farmer support.

The Hunter Downs Water (HDW) scheme, aimed at irrigating 12,000ha of the Waimate District with a consented water take from the Waitaki River, has finally pulled up stumps after struggling to sign up enough farmers to make it pay.

The scheme was first jeopardised by the newly elected Labour-led

Government pulling support for irrigation schemes.

HDW had hoped that a loan from Crown Irrigation Investments Ltd (CIIL) loan would get it over the line, but this disappeared when the Government imposed its policy of requiring large-scale private irrigation schemes to pay their own way.

Hunter Downs said last month that it would go ahead, backed by the local rich-lister Gary Rooney’s

company Rooney Holdings Ltd (RHL), well-known by Canterbury farmers for its earthmoving, irrigation, pipe and cable laying, and trucking.

“It is with great disappointment that I advise that as a result of a significant drop-off in support from those farmers previously committed, this project no longer has sufficient numbers to warrant proceeding,” HDW chair Andrew Fraser said.‑

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RURAL NEWS // OCTOBER 2, 2018

NEWS 5

Merino prices spinning a fine yarn NIGEL MALTHUS

MERINO WOOL is “very much the talk of the town at the moment,� says PGG Wrightson South Island sales manager Dave Burridge.

Finer wools are reaching prices not seen in a generation, he says. “It is demand driven.

a period of very strong activity, best Merino fleeces of 16, 17 and 18 microns fetched clean prices of 3600, 3430 and 3060 cents/kg respectively, up as much as 273 cents/kg on the previous sale.

There has been three years of steady, positive growth, Burridge says.

“Of note was the large offering of Merino wool which continues to break new ground, reaching levels not seen in a generation.�

There’s a definite lack of supply,� Burridge told Rural News. “We can’t get enough of it at the moment. It’s also having the same effect on our mid-micron wools. Half-cross Merino wools are also at record levels.�

In a report on the September 13 Christchurch sale, Burridge said a highclass offering of pre-lamb fleece saw prices firm for most styles. “Of note was the large offering of Merino wool which continues to break new ground, reaching levels not seen in a generation. Strong global interest shown for these wools reflects the lack of supply from Australia, due to significant drought affecting wool quality.�

Although mid-micron wools cooled off after

“This particular period of growth is the most sustained level of growth in terms of price we’ve ever seen.�

He says prices were comparable to the period of high demand for fine wool colloquially known as “micron madness� about 1990. The high prices arose mainly from an overwhelming demand from China, underpinned by the traditional markets in Europe, mainly Italian, French and British.

China was experiencing a revolution in consumer preference for “next-to-the-skin� fibres. “With increasing disposable income, they’re now wanting these luxury fibres. Certainly it resonates really well with the more affluent population over there – the story that it’s a natural fibre, it’s

coming from New Zealand, it’s sustainable and comes from ethical farming systems.�

Burridge says the growing season has been very good in most Merino regions and the wool has come forward in excellent condition.

Although NZ’s volumes of about 45,000 bales a year represented only one week’s Australian production, the huge drought in Victoria and

New South Wales is badly affecting Australian wool quality with seed contamination, dust and dirt.

NZ is now the global focal point for the topend market, Burridge says. “The NZ component is highly sought-after.� He expects the rest of this season to remain “pretty solid�.

Fine wool is continuing a run of high prices.

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RURAL NEWS // OCTOBER 2, 2018

6 NEWS

High lamb prices will hit profit NIGEL MALTHUS

ALLIANCE GROUP has warned that its annual result, due to be reported in November, will show a drop in profit.

“The financial performance of the company this year will be down... meaningfully,” chief executive David Surveyor told farmers attending the company’s roadshow meeting in Cheviot last week.

However, he assured shareholders the company is profitable, the balance sheet remains “incredibly strong, and for the avoidance of any doubt we have the ability to make sure we build our company forward.”

Surveyor says Alliance will make a bonus offer to shareholders of increased equity based on their supply of livestock through the year, at rates of $1 for each lamb or bobby, $4 for deer, and $12 for cattle beasts. That would amount to $7.8 million in value paid back to shareholders.

Surveyor told farmers it had been a challenging year, starting with a widespread drought and “lots of animals rushing towards us”.

“We made the conscious decision as a cooperative not to drop prices

Alliance shareholder relations manager Heather Stacy.

because we knew that was a moment when we needed to be looking after farmers.”

The company put on capacity early and held it, then the rain came and the grass grew and farmers decided to keep bulls, “so effectively the bull

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season moved about one month to the right”. That then coincided with dairy farmers’ annual cull cows, compounded by the first flush of Mycoplasma bovis culls.

Alliance had to put on overtime at its Pukeuri and Mataura plants, and

as well as a Sunday shift at Mataura, another 4000 cattle were shipped to the North Island for processing at Levin.

Surveyor says winter and spring then brought “a fundamental disconnect between the laws of supply and demand”.

This had flattened global lamb prices, yet procurement prices rose about $20 a head, cutting into profit.

However, Surveyor says now that the market is entering the Christmas chilled meat period the margin is starting to widen back into “more sensible territory”.

He says Alliance is continuing its long term development strategy despite “economic ill winds”.

“If we ever want to break the commodity model that’s what we need to do: keep the faith, keep the drive, keep the performance in the business and make sure we drive for a different outcome for farmers.”

He says a successful trial of consumer packaged meats in Britain last year will be expanding into the US, and other consumer packaging options are being explored such as 100g individual

portions, mince and “slice and dice”.

Blood capture facilities being used with bobby calves at Levin and Pukeuri will be expanded to other animals to “capture some products which historically we have not captured,” said Surveyor.

Heather Stacy, general manager, livestock and shareholder services, says Alliance is forecasting lamb prices of $6.50 to $8.10 in the first quarter of the new financial year (to the end of December), easing to $6.40 to $6.50 in the second quarter, reflecting the natural reduction in price as the market goes from the Christmas chilled trade back to frozen.

Sheep prices are forecast to lie between $4.50 and $4.95 throughout.

Prime cattle will ease from $4.80 to $5.50/kg in the first quarter to $4.80 to $5.30 in the second.

Cows, $4.00 to $4.30, easing to $3.80 to $4.00. Bulls, $4.80 to $5.00, easing to $4.80 to $4.90.

Venison prices are expected to lie between $11.00 to $11.75, easing to $10.40 to $11.00 in the second quarter.

The Alliance Roadshow events started in Cheviot on September 24 and end at Akaroa on November 26.

RURAL NEWS // OCTOBER 2, 2018

NEWS 7 Fonterra board battle begins SUDESH KISSUN sudeshk@ruralnews.co.nz

SOUTH CANTERBURY farmer Leonie Guiney says if re-elected as a Fonterra director she can contribute to a simpler, more disciplined and successful co-op.

Guiney is one of two selfnominated candidates in the 2018 board elections. The other is Canterbury farmer John Nicholls.

The five-way contest for directorships includes three candidates endorsed by the sitting Fonterra directors and shareholders council. They are sitting director Ashley Waugh and two new candidates - Zespri chairman Peter McBride and Maori business leader Jamie Tuuta.

Guiney, who served a three-year term on Fonterra’s board, isn’t fazed by being up against three board-approved candidates.

“The fact I am up against the anointed ones is a strength, not a problem,” she told Rural News.

“That’s what differentiates

Comeback kid? Leonie Guiney.

me… and recent history strengthens my opportunity to be effective in farmers’ long term interests.

“The fact all my income is dependent on dairy farming

provides a genuine owners’ interest type of discipline with capital of which we need more, not less.”

Guiney has criticised Fonterra’s use of capital in some

business ventures. She wants the co-op to recognise and allocate capital to core strengths, “and cease trying to be what we are not”.

“I also want Fonterra to accurately assess the risks; its balance sheet is not in a strong position in an environment where we are losing milk.

“We will need courage in our decisionmaking to protect our cooperative that is absolutely worth protecting and strengthening. We need an attitude to stewardship of owners’ capital and a direction that restores the trust of our farmer owners and the NZ public while enhancing our stillpositive reputation offshore. It can be done and it must be.”

Guiney says although she has been encouraged by farmers to stand, it has been her own decision.

“It has to be because I need my family and all our sharemilker, contract milkers’ and staff support to do so.” @rural_news

FIVE VIE FOR THREE SPOTS Peter McBride Chairman of Kiwifruit marketer Zespri since 2013 and a director since 2002. A director of NZ International Business Forum and NZ-China Business Council, McBride has invested in the kiwifruit, dairy, avocado and forestry sectors.

Jamie Tuuta Chief executive of Te Tumu Paeroa, an independent organisation managing 90,000ha of Maori land. Tuuta is a recipient of the 2010 Sir Peter Blake Emerging Leadership Award and was awarded the Maori Young Business Leader of the year award in 2016.

Ashley Waugh Lives on his dairy farm near Te Awamutu and has shareholding interests in Puke Roha Ltd in Pokuru.

Waugh spent ten years with the New Zealand Dairy Board then eight years with National Foods in Australia including the last four years

as chief executive.

Waugh was elected to Fonterra’s board in 2015. He is chairman of Moa Brewing Company Ltd and is a director of Seeka Ltd and the Colonial Motor Company Ltd. John Nicholls Is director/owner of Rylib Group, a farming business created by Kelly and John Nicholls. Last season, Rylib Group’s total milking platform reached 1275ha, producing 2.5 million kgMS. Nicholls is chair of Mayfield Hinds Irrigation Ltd and Irrigo Centre Ltd. He served on the Fonterra shareholders council from 2009 to 2011.

Leonie Guiney Farms in Fairlie, South Canterbury with husband Kieran and won Canterbury Sharemilker of the Year award in 2006. Worked as a consultant for farmers in NZ and Europe and served as a Fonterra director from 2014 to 2017.

facebook.com/ruralnews

Chris Tong South Otago

24/09/18 11:27 AM

RURAL NEWS // OCTOBER 2, 2018

NEWS 9

Huge cost of pasture pests PETER BURKE peterb@ruralnews.co.nz

GRASS GRUB and porina are causing $2.3 billion of damage to New Zealand pastures annually, according to an AgResearch study.

Of the total estimated annual losses in average years, up to $1.4b occurs on dairy farms and up to $900m on sheep and beef farms.

But scientist Colin Ferguson says this figure relates only to the damage to pasture and doesn’t include the cost of replacing the pasture, destocking and restocking and the long lasting damage to affected pasture.

The survey was part of the Pastoral 21 Next Generation Dairy systems funded

by Fonterra, DairyNZ, Beef +Lamb NZ, DCANZ, MBIE and AgResearch.

Ferguson says their figure is based on an extensive study of all the scientific papers and literature on each of the pests in NZ. A typical example would be a dairy farm with a moderate population of porina -- about 60/sq.m. That could cost a dairy farmer about $1000/ha and a sheep and beef farmer about $100/ha in lost production, he says.

Scientist Colin Ferguson conducting field trials.

He reckons many of the pests tend to be region-specific. The big one is grass grub, which occurs everywhere south of Waikato. In the sub-tropical north it’s less a problem.

Porina also is pretty much nationwide apart from the top of the North Island, he told Rural News.

“We must also consider black beetle which is a problem in the north of the North Island; but south of Hamilton, apart from some areas around Te Kaha, it fades out because the climate is not suita-

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Ferguson lists other major pasture pests as Argentine stem weevil, clover root weevil, nematodes and black beetle – all from overseas.

The ability to control the variety of pests varies, he says. In the case of porina and grass grub, it is possible to predict when these pests are going to cause damage and how bad that might be.

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Ferguson hopes this survey and the data now available will prompt farmers to recognise the cost of damage caused by pests and act ahead of them.

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RURAL NEWS // OCTOBER 2, 2018

10 NEWS

Farmers must do the right thing on M. bovis NIGEL MALTHUS

FARMERS SELLING cattle have a duty to disclose if the animals have been under Mycoplasma bovis testing, says Dairy Holdings chief executive Colin Glass.

Non-disclosure might not be breaking any laws if the selling property was not under a MPI notice of direction or a restricted place, but it is a matter of integrity, he believes.

“Some people have been a little bit cute,” Glass told Rural News.

“You’ve still got a duty to disclose that information if they’re under testing that hasn’t been positive. Now some people put that in a contract and some people

don’t. But even still, I would have thought we’ve still got to do the right thing.”

As head of Dairy Holdings, Glass runs the country’s largest corporate dairying business, milking 51,000 cows on 60 dairy farms supported by nearly 20 of its own grazing blocks.

He says being relatively self-contained has helped the group remain M.bovis-free despite a number of scares. One farm currently has a couple of trace animals being tested.

However, Glass’s comments relate to a particular incident when a DH farm bought stock after asking for “a lot of representation” from the

Dairy Holdings chief executive Colin Glass.

vendor that the animals were clear. Two weeks later, MPI unexpectedly contacted the company, saying they were trace animals that had already had two lots of tests and needed to have their third.

“So we were really really disappointed.

Fortunately the animals tested clear but what we were disappointed with was that the representation from some farmers is not quite as honest and complete as it could have been.

“I make the comment because I think it’s important that farmers

ensure their own integrity is intact as we go through these processes.

“The last thing we want is people signing warranties and giving you undertakings that animals are clear or that they haven’t had any testing, and then you find out only a couple of weeks later that’s not actually right.”

Glass, a director of DairyNZ, says he would not have been concerned if that had been the only case he was aware of, but he has since heard of several cases where buyers had been given “those same flippant warranties”.

“It’s just a nice wee reminder that integrity is pretty important at these times.”

GOING IT ALONE GLASS SAYS Dairy Holdings has had several traces done over the last six months and fortunately all came back clear.

“So we’ve never been under any notice of direction or anything like that yet, but we’ve a had a few scares along the way,” he told Rural News. “I think that’s no different from a lot of people, really.”

Glass says the company is now introducing a wider strategy towards becoming even more self-contained, partly in response to M.bovis, and in aid of general biosecurity and taking greater control over how its farms operate.

“The pathway we’re now on is that our contract milkers and share milkers are more than welcome to rear their own stock. But if they want to do more than that, if they want to bring stock into the herd, they’ll have to run those stock on our own internal grazing blocks.

“What it really means is that for the future in Dairy Holdings, for our people to grow and develop, they’ve either got to rear stock and run them internally or they’ve got to buy them from other contract milkers and sharemilkers within Dairy Holdings.”

Glass hopes the new strategy will bring a double positive: from the stock becoming worth more due to its disease-free status and an increase in farm performance. through increased herd stability.

“We’ve seen over the years, when herds have been made up from outside, that the performance of the herds can be quite variable.”

RURAL NEWS // OCTOBER 2, 2018

NEWS 11

Better broadband enables innovation PAM TIPA pamelat@ruralnews.co.nz

WITH PAMU (formerly Landcorp) now having branded products in the market it is very important from a providence perspective to be able trace everything back onto farm, says Rob Ford, general manager for innovation, environment and technology.

“Insights from a market/consumer perspective are important, hence connectivity to farm is critical in that process,” he says.

This highlights some of the benefits of the Rural Connect Project in which Vodafone has brought fast broadband to 125 Pamu farms around New Zealand.

It is the second-largest connectivity project in NZ after the Government’s Rural Broadband Initiative (RBI). Vodafone brought internet connectivity to at least 300,000ha of farmland.

“Our farms are becoming more and more sophisticated and there’s a requirement to have greater access to information on the performance from a land, animal, health and safety and environment perspective,” Ford told Rural News.

“Connectivity and the ability to link to information systems is critical. And health and safety [require] good communications onfarm, be it mobile or broadband.”

A major bonus is the allowance for innovation in a business where technology infrastructure is delivering broadband.

“This allows a lot of the cool things we have and cool applications to be live onfarm and create value. Previously we were unable to, we had limitations. We can really start to push innovation on farm using technology.”

Ford says the great thing also from a farming perspective is that Pamu doesn’t just do these things for itself. It makes sure there’s a benefit to the wider industry.

“Of benefit in time will be that a lot of information we are gleaning off farms via the systems we are using through the broadband technology will be beneficial to farmers. We will be able to publish and show what we are doing and the value created.

That will be good for other farmers because they will be using similar applications to us.”

Ford says the scale of this project was vast and to get the connectivity between 125 farms and about 200 houses, many in very isolated areas, was a feat of outstanding proportions.

The reporting post implementation “shows that the technology is delivering us consistently 10megabits per second which was the promise”.

“Vodafone have been an outstanding partner, embarking on such a journey with such a large project to get the value that needs to be delivered. My hat’s off to them; they have done an amazing job.”

Pamu is NZ’s largest farming company. It is also the name given to the products created by the company. It owns at least 100,000ha of farmland throughout NZ and manages an additional 200,000ha.

Many of these farms are in regions where many farmers had very poor internet connection.

Vodafone spent three years delving into the connectivity problems across all areas of Pamu’s business, making regular farm visits and doing research interviews.

Vodafone public sector business development manager Alistair McDonnell says the improved internet connection helps farms work smarter not harder.

“Improving connectivity means employees can communicate with others in different parts of the country more regularly, with better quality and improved efficiency.

“We often take for granted the connectivity we have in our big cities

but that’s not the reality for many farmers,” says McDonell.

East Coast business manager Victoria Magazinovic says the connection has helped her farms communicate

more often and effectively with other stations.

“Since the new connection was put in place we have a weekly video conference with other farms to catch up on how everything

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RURAL NEWS // OCTOBER 2, 2018

NEWS 13

Fonterra ‘clones’ to blame – critic PETER BURKE

A SYSTEM of ‘cloned governance’ is the main reason for Fonterra’s financial debacle, says a prominent dairy farmer.

Trevor Hamilton, who owns eight dairy farms in several regions and supplies Fonterra, Synlait, Westland and Miraka, describes the co-op’s financial performance as a disaster.

It has caused him to

write $1.6 million off his company’s balance sheet because of the drop in the value of Fonterra’s shares, he says. His business owns about 1.7 million supply shares relating to the four farms that supply Fonterra.

“Since January 1 those shares have dropped from $6.50 to under $5.00.

Not only have they not performed in terms of the dividend, but the shares have dropped away as well and a 10c

dividend on a $5-$6 share is nothing short of pathetic,” he says.

Hamilton says Fonterra got itself into its current pickle because of the way it elects its board – “cloned governance” whereby the existing directors effectively select who they want on the board.

“Read what the Directors Institute says is good governance: diversity of debate that creates better outcomes. That’s what it

Corporate farmer Trevor Hamilton describes Fonterra’s performance as a disaster.

is all about -- celebrating diversity of debate.

“But Fonterra has stopped that debate; they don’t want it and they don’t want to be challenged. Therefore by stopping that you do not get management accountability; that’s the problem we have.”

Hamilton says senior management needs to be seriously challenged on the Beingmate, China farms and other issues such as the setting of the milk price.

Hearing different

points of view on a board makes for good governance, he says, pointing to former director Leone Guiney having challenged the board and soon afterwards being dropped.

“When I stood for the board you had to like Henry van der Heyden.

I was asked by him to stand but the moment I told him I could drive a bus through TAF (trading among farmers) he ditched me like a cold cup of sick and I missed

out on being elected. I am ok about that; I went on with my own life.”

Hamilton says he saw the makings of the present financial debacle at Fonterra 15 years ago, due to the way the board was operating.

The co-op needs an independent chairman, he says.

“One of the questions I have for John Monaghan is ‘explain to me what is the essence of good governance’.”

SPREADING RISK BY SHARING MILK AROUND TREVOR HAMILTON says his company supplies four processors as a means of de-risking their business.

He says the rate of return on the Fonterra shares doesn’t add value to their business, so they have sold down their shares and taken about 2 million kgMS from Fonterra.

“When I did this no one from Fonterra rattled my front door because they

believed it was because I don’t like Fonterra. That’s not true; it was a business decision and we felt that spreading our risk among several processors would give us a better outcome and it has.

“I want Fonterra to do really well.

But I don’t want them to do what they are doing now because effectively they don’t have a good milk price. The corpo-

rate dairy companies will only ever match Fonterra; their duty is the shareholders, not to their milk suppliers, so we need a strong Fonterra.”

But Fonterra is not currently strong in respect of the milk price “and effectively what Fonterra is doing right now is giving every corporate dairy company a milk cheque”.

Fonterra needs someone to sort out

the current mess, Hamilton says. The co-op’s share of the national milk supply is declining and now stands at 82%. He believes it could be as low as 75% in three or four years.

He claims that Fonterra directors have told him that the co-op will retain its share of the national supply because of its performance, “but clearly they are not performing and clearly they won’t

hold milk”.

He says although his generation supports the cooperative spirit, young people wanting to own a farm may see owning Fonterra shares as too high a hurdle and opt for the corporate dairy processors because that’s cheaper.

He also criticises the Fonterra shareholders council for failing to hold the board to account.

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RURAL NEWS // OCTOBER 2, 2018

14 NEWS

Partial victory for fruit growers PAM TIPA pamelat@ruralnews.co.nz

AFFECTED GROWERS claim that the release of 20,000 apple and 400 stonefruit plants from containment vindicates the position they have taken since the start of the issue.

They also hope MPI will repair the relationship with the CPCNW facility in the US, a supplier of new varieties to New Zealand for 30 years.

MPI withdrew accreditation from the facility and CPCNW in turn said it was no longer interested in exporting to NZ. Andy McGrath, an industry member and owner of McGrath

Nurseries, says the release of plant material is the first step towards rectifying the unlawful actions imposed by MPI. A group of orchardist and growers successfully took MPI to court over the containment action and MPI was forced to reconsider how it applied legislation.

McGrath says there is still some way to go before orchardists and nurseries will be able to return to normal commercial production.

The testing and release of stonefruit plants has yet to be confirmed, and there is the issue of certain plant varieties held up in post-entry quarantine. These issues need to be resolved as quickly as possible.

“The vast majority of stonefruit plants remain in containment and the testing plans proposed

by MPI are in our view overly strict.”

They had planned to address this with MPI in a meeting late last week.

“We recognise stonefruit have a different risk profile, but we are very optimistic that the tests will not reveal any cause for concern,” says McGrath.

McGrath has recently returned from a visit to the CPCNW facility and says MPI’s withdrawal of accreditation essentially closed the door to innovative plant varieties that may be the future of the NZ apple and stonefruit export industry.

Affected grower Andy McGrath claims the release of material is the first step in rectifying MPI’s illegal actions.

McGrath believes the CPCNW facility is willing to consider reaccreditation, and

made encouraging comments regarding the required process.

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MPI and industry members to discuss the potential reaccreditation of the CPCNW facility was also scheduled for late last week. McGrath holds some hope that MPI may be able to take a reasonable approach to discussions, repair their relationship with CPCNW and set a clear plan in place towards reaccreditation.

McGrath says MPI has confirmed that tests on all apple (Malus) plants have come back clear, with no signs of any pests or diseases detectable on the plant materials.

These plants have been effectively released from containment and industry members will be able to deal with them like any other trees in their orchards or nurseries.

The balance of stonefruit plants (Prunus) will remain in containment and be further tested during the

2018-19 summer. MPI says the testing should be complete by June 2019, but the group believes it should be possible to release more plants progressively much sooner.

MPI director of plant and pathways Pete Thomson says decisions made during this process have been based on protecting NZ and the wider horticulture industry.

“Some of the diseases, if present, could impact significantly on our wider horticulture industry.”

Nearly 20,000 stonefruit plants require more testing over spring and summer when diseases of concern would be most evident if they were present.

During the action about 48,000 affected apple and stonefruit plants and small trees were secured at 50 sites in Hawke’s Bay, Waikato, Nelson and Central Otago. In total, 32 nurseries, importers and growers were affected.

Just over 1000 apple plants have been voluntarily destroyed by 12 owners. Twenty owners opted to destroy over 6000 stonefruit plants.

“MPI remains open to receiving requests for payment for direct and verifiable losses incurred as a result of destroyed or contained plant material,” says Thomson.

“We’ve written to all affected owners on this, and we are offering oneon-one meetings to talk through the process.”

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RURAL NEWS // OCTOBER 2, 2018

16 NEWS ANOTHER TAX COMING? FEDERATED FARMERS vice president Andrew Hoggard says someone who has recently bought a farm and may be highly leveraged could be hit by the introduction of a capital gains tax pushing down land values.

“Suddenly your equity position doesn’t look so hot and you may be in a bit of strife with the bank,” Hoggard told Rural News in response to the interim report by the Tax Working Group chaired by Sir Michael Cullen.

“Obviously if you’re planning to buy a

farm after this comes in you might think it’s the greatest thing since sliced bread.

It depends where you are in your farming career, I think,’ says Hoggard.

The possibility of a capital gains tax, including on agricultural land, is raised in the report.

While emphasising that the group’s work is not yet complete, the report says one potential option for extending capital income taxation is to extend the tax net to include gains on “assets not already taxed” such as

from realisation of land other than a family home.

“This includes all other residential property, commercial, agricultural, industrial and leasehold interests not currently taxed,” says the report.

However, the report also recognises the possibility of ‘roll-over’ relief, where taxing the capital gain may be deferred, such as when a farmer sells a small farm in order to buy a bigger one.

– Nigel Malthus

From left Massey University’s Head of the School of Agriculture and Environment Professor Peter Kemp, Fruitcraft general manager Steve Potbury, New Zealand Apples & Pears capability manager Erin Simpson, New Zealand Apples & Pears chief executive Allan Pollard and Bachelor of AgriScience student Georgia O’Brien.

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PLANS ARE underway for a standalone bachelor of horticultural science degree course at Massey University.

This is being considered by the Universities New Zealand committee on university academic programmes and an announcement is expected soon.

Plans for the new degree were announced as part of the official opening of the 4ha orchard at Massey, which has the latest planting methods and world leading export varieties including the new Dazzle apple and the globally successful T&G variety Envy.

The orchard is sponsored by the NZ apple and pear industry.

Massey’s pro vice-chancellor for science, Professor Ray Geor, says while Massey has always worked closely with industry, the community and students, it has been challenging itself to find innovative and productive ways to do it better -- to deliver even better results to benefit industry and New Zealand.

By working together with Massey University our industry sees significant benefits by enhancing education pathways and programmes in horticulture.

“The rapid growth and developments within industry means they need more graduates with an excellent knowledge of science, technology and the horticultural businesses. It will become an integral part of student learning and research including a project exploring how sensors and robotics may be used to automate care of the trees,” says Geor.

The innovation orchard is supported by T&G, NZ Apples & Pears and Fruitcraft -- a collaboration of Mr Apple, Bostock NZ and Freshmax.

NZ Apples & Pears capability manager Erin Simpson said the new partnership represents an opportunity for the horticultural industry to gain the capability to grow into the future and to stay at the forefront of innovative food production globally.

“By working together with Massey University our industry sees significant benefits by enhancing education pathways and programmes in horticulture leading to exciting careers and new job opportunities for graduates.”

Simpson says the phenomenal success of NZ’s apple and pear industry, which is ranked the best in the world for international competitiveness, has seen growers and exporters calling for an industry-specific education pathway that delivers tangible results.

He says NZ’s $800 million apple industry has been experiencing year-on-year record seasons and export returns.

“To keep earning and retaining our world-leading status we need to attract the best young minds to join us in growing and exporting the best apples and pears for the world.”

RURAL NEWS // OCTOBER 2, 2018

NEWS 17

A woman of wine and earth A LOVE of working outdoors has led Dunedinraised Annabel Bulk to a blossoming career in viticulture.

Bulk, an assistant viticulturist at the Felton Road vineyard in Bannockburn, Central Otago, has been named Young Viticulturist of the Year 2018 – only the second woman to win the title.

Runner-up last year, Bulk excelled in practical and theory modules in a competition held at Martinborough in late August.

Back at work in Central Otago, Bulk explained that the contest included interviews, a project presentation and a speech, and physical modules such as pruning and trellising – a very physical activity entailing posthole digging and wire straining.

“Obviously it’s meant to be challenging – that’s the point,” she told Rural News. “So you walk away from it feeling as though you’ve done a huge workout.”

Bulk, who was raised in Dunedin, says her love of the outdoors, of conservation and nursery work, is what brought her to the industry. She studied viticulture and winemaking in Marlborough, and has completed a Lincoln University viticulture degree.

She has now been working nearly seven years at Felton Road.

“I had to finish off my degree by doing some vineyard work experience and pretty much haven’t left.”

Bulk says there is a huge diversity of work to be done at Felton Road, as the vineyard is run on organic and biodynamic principles. “It keeps everything interesting and keeps you learning.”

Felton Road’s biodynamic methods include making their own compost and foliar sprays, and breaking down cow manure to create “an intense microbe inoculate” to encourage soil

biology.

Biodynamics is essentially about looking after what is both above and below ground, she explains.

“We are focussing on trying to get a complete living biome around us, and that includes loving and looking after the soil and what’s happening underground as well

as looking after the vines and the biodiversity in the vineyard itself.”

Winemakers like to talk of the “terroir” of a wine – a character derived from the land the grapes were grown on.

“You’re trying to create something of the land and of your parcel that you come from,” she explains. “So we’re look-

ing after that and trying to create a healthy soil where everything leads on from that.”

Bulk says her goal for the next two or three years is to pass on her passion for the industry.

“I want to be able to focus on training and teaching the next lot of young viticulturists coming through.”

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RURAL NEWS // OCTOBER 2, 2018

NEWS 19

Spotlight on kiwifruit helps with jobs pamelat@ruralnews.co.nz

PUBLICITY ON a labour shortage in the kiwifruit industry last season had an interesting side effect: it attracted people to come and work in the industry, says New Zealand Kiwifruit Growers (NZKGI) chief executive Nikki Johnson.

The industry came into the media spotlight when a labour shortage was officially declared by the Government. The experience has encouraged the industry to look at other ways to get the word out about jobs available.

The industry was 1200 workers short last season but Johnson says they know they eventually filled about 600 of those.

About 200 positions were filled through Work and Income (WINZ).

And other New Zealanders -- not necessarily WINZ clients -- filled some positions. Plus they had additional interest from backpackers and the ‘VOC’ process which is the temporary change of a visitor visa to a work visa.

“We [reckon] we filled 600 of those vacancies at the time of the labour shortage declaration. We got through the season – no fruit was left on the vine -- but it put pressure on the people who were working in the industry.

That isn’t something we want to repeat if we can avoid it.

“The most interesting part about declaring the labour shortage was the publicity that came with that; a number of people came forward to the industry for work as a result.”

That was both through WINZ and the wider public.

“We are working on an attraction strategy right now to attract people without actually having to declare a labour shortage. So how can we utilise media, how can we utilise streams of social media, what can we use to attract people to the industry before we get to a crisis situation?”

Johnson says more people need to know about industry opportunities.

“Partly it is about dealing with some of the

misconceptions about working in the industry.

For example there is a common assumption that pay rates are really low, but orchard work actually pays really well.

“There are misconceptions about the types of hours you can work in the industry and we need to make sure people understand there are both fulltime roles and fulltime seasonal roles available.

“It is challenging for someone to work for eight weeks in the harvest season and then have to find something else to do. It is about making employees aware of the follow-on work that is also available for, say, winter pruning which we are just coming to the end of now.

Pruning has been really difficult for the industry; we haven’t had enough labour.

“Then we will move into the summer pruning and thinning. So the kiwifruit industry is able to provide work for around 10 months of the year, possibly longer.

“It is a matter of letting people know those opportunities are available and how to get involved that is part of the story as well.

“There are absolutely a lot of roles available and there is training for people as well if they want it.”

Weather related stoppages are an issue for the industry and they are considering how to give workers a consistent income so more people are attracted to roles.

The NZKGI Critical Labour Shortage report delivered to the Government in August was designed to start a conversation on quantifying the extent of the issue and frame discussions on where to from here, says Johnson.

One outcome is that Minister for Immigration Iain Lees-Galloway has issued the industry with challenges on how it works in the labour space, she says.

“Many of those are already recognised in our report, like flexibility of working hours and employing more New Zealanders. He has indicated we need to demonstrate some commitment to resolving those issues and

NZKGI chief executive Nikki Johnson.

then come back to Government and talk about the other issues. They are happy to support the industry once it has done some of those things. So it is a longer term conversation.”

They are talking with the Ministry for Social Development on projects they can test-case

with WINZ to employ more NZers including pre-employment training.

Further announcements will be made in the near future.

The ‘Pipeline’ project that identified WINZ clients who could be placed with contractors into fulltime employment was very successful but has

finished because they ran out of candidates for the positions. Pipeline provided some pastoral care and pre-screening to ensure placement into roles where they were physically able to do the work and it supported them to stay in the role.

Johnson says she is now talking to the Min-

istry for Social Development on how to replace the Pipeline project with other initiatives.

Meanwhile an announcement on the cap for the Recognised Seasonal Employment (RSE), which brings in temporary overseas seasonal workers, is expected at the end of next month.

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20 NEWS

More Irish/Kiwi colloboration needed THE REPUBLIC of Ireland’s first resident ambassador to New Zealand says many opportunities exist for collaboration by the two countries.

Peter Ryan, newly arrived in the last two weeks, told Rural News the world market for agri foods is growing. And as NZ and Ireland have both transformed their agricultural sectors, there is scope for more collaboration.

“Yes we are competitors, but most countries in the world are competing with each other,” Ryan says. “I think a lot more could be done to find more areas of collaboration.

“The milk quotas were lifted a couple of years ago, adding impetus to the Irish dairy sector. There is absolutely no reason why Irish and NZ companies couldn’t work together in third markets.”

Ryan says Ireland was delighted

Irish ambassador to NZ Peter Ryan.

to have a big NZ presence at its National Ploughing Championships this year, hence many Irish companies visit Fieldays at Mystery Creek.

“You will see a lot more of that and a lot more people coming and looking at start-ups in the ag tech sector.”

He says Ireland will retain unfettered access to the European market when Britain leaves next

year. Ryan believes there is a place in Ireland for NZers to come and feel comfortable and quickly get the lie of the land, just as the Irish are welcomed in NZ. And Irish universities and institutions will retain access to EU research funds after March 2019 (Brexit), whereas Britain won’t, Ryan says.

“So there is a huge opportunity to further cement the already flourishing links between our universities, especially in agriculture.

It ‘s obvious to me that a lot more can be done in this area.

“We like to think we punch above our weight in the way that NZ does. So we have a lot to learn from each other.”

Ryan says Brexit is a big issue for the Irish, especially the issue of

retaining the ‘soft’ border between Northern Ireland and the Republic of Ireland. Despite the deadline for Britain’s exit from the EU being only six months away, his government is confident the soft border will remain.

“The British government, as you know, is a co-guarantor of the 1998 Good Friday agreement and is also committed to avoiding the reintroduction of that hard border,” Ryan adds. “If you look at the history of Europe, you see that a number of times negotiations have gone right to the wire.

“Our deputy prime minister says at least 80% of the issues on Brexit have been addressed and they are down now to couple of core issues; one of them happens to affect our Ireland. We are very confident that with goodwill and vision a workable solution will be found.” @rural_news

PETER RYAN has a master’s degree in history and is a career diplomat, having served in Japan, Korea, Singapore, New York and Hong Kong.

After his studies he worked in banking then joined Ireland’s Department of Foreign Affairs. His wife and two of their three daughters have joined him in NZ. Ryan says NZ and Ireland have excellent political relations and he believes the time is right for the two countries to ramp-up their political collaboration. NZ last week appointed Brad Burgess to open the first NZ embassy in Dublin.

“We are as thick as thieves with each other at the United Nations level and we have a similar view of the world on most issues,” Ryan told Rural News. “We don’t have any outstanding issues with each other and that is fantastic from my point of view because it frees me to do a lot of things in other areas.”

Ryan says 15,000 Irish now live and work in NZ. He wants to build trade between the two countries and says Ireland has a lot to offer NZ start-up companies in technology.

“About 200 Irish companies are active in the NZ market so we want to encourage more to come here to partner with NZ firms. As a result of Brexit more global firms are looking at Ireland as a place to establish a business with a consistent stable partner in the EU,” he says.

And with his background in Irish history, Ryan is keen to expand the cultural links between Ireland and NZ. He points to the high level of recognition of Ireland in NZ and vice versa, saying both countries have similar histories including emphasis on preserving the language of the indigenous people.

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RURAL NEWS // OCTOBER 2, 2018

22 NEWS

Milk research to benefit young and old The young and the elderly will be the main beneficiaries of a five-year, $11 million research project entitled ‘New Zealand Milks Mean More’. Peter Burke reports.

THE RESEARCH, now underway, is to help grow NZ’s milk industries by developing foods that improve digestion and nutrition for certain consumers.

Led by Professor Warren McNabb, deputy director of the Riddet Institute (a NZ Centre of Research Excellence), the project is intended to give better understanding of the ‘mechanistic’ aspects of NZ cow, goat, sheep and deer milk.

Other research partners are the Massey University Institute of Food Science and Technology, AgResearch and its Food Nutrition Health and Dairy Foods science teams and the University

of Auckland. It also has the backing of Miraka, Fonterra, Synlait, A2 Milk Company, Maui Milk, Spring Sheep Dairy, NIG Nutritionals, Pamu and the Dairy Goat Cooperative.

Referring to the ‘mechanistic’ differences in milk, McNabb says while two foods may have similar compositions, the nutritional consequences when these are eaten could be quite different because of the way the nutrients are structured in the food.

“The [research will] look at the way those milks are structured in their raw state as well as when you process them into any range of product

such as yogurt and cheese etc,” McNabb told Rural News.

“If you understand that structure/nutrition relationship you can really affect the way we receive important nutrients from any food. Ultimately it is understanding about cow, sheep, goat and deer milk release nutrients.”

McNabb says once its understood how these interactions occur, then you can look and see what can be done from a processing perspective to improve the nutritional value of milk and milk products. He says the researchers want to understand how milks are digested and how nutri-

Professor Warren McNabb.

ents are released into the body, and what are the nutritional consequences for the person consuming

the milk.

“The industry has a real interest in how to position milk as part of a

whole holistic diet. It is not necessarily finding a particular protein in milk that has some biological

activity and then working out how to exploit that,” he explains.

“It’s more how you manipulate whole milk into products to maximise nutritional value. It’s also how we position milk in our diet because of its intrinsic nutritional and health properties.”

McNabb says research in Australia shows that if people had been drinking the recommended daily intake of about 500ml of milk/day the savings to the health system there could be huge.

He says milk is a complete food, not just calories and protein but other equally important nutrients like minerals, trace elements and vitamins, several of which are not easily found in other foods.

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RURAL NEWS // OCTOBER 2, 2018

NEWS 23 Consumer demand drives research

Milk’s role in a healthy diet is an instringic part of developing dairy products for export.

point is how to crack this as high-end/ high value, scientifically substantiated foods”.

McNabb adds that any claim for a food – whether environmental, sustainability or health claim -- will in

future need to have defensible, scientific substantiation.

“Given the power of social media and the speed at which information gets around, our products will need to be scientifically credible,” he says.

McNabb notes that in the next 20 years NZ will be targeting markets in Asia and other places where people are health conscious and can afford to buy the high quality products NZ plans to produce.

THE RESEARCH’S focus on the very young and the elderly is because many things are going on in the newborn especially in the first 1000 days of life in terms of the development of the brain, the gastrointestinal tract, immune system and microbiome.

“Completing all that development in early life is an important determinant of your health and wellbeing for the rest of your life, so it is a really important time to get nutrition right,” he explains.

“With older people, their processes slow down and they don’t digest food, particularly the more complex foods, as well.”

McNabb hopes that after three years there will be significant interactions with the milk industry in clinical work of direct relevance to it and its markets. By the end of the project there will be commercial impact.

“An advantage of this project is its bringing NZ milk industries (cow, goat, sheep and deer) together in one programme. There is an opportunity for us to be a voice for NZ’s broad dairy industries.

“Especially our aim is appropriate and healthy nutrition and positive marketing messages to health professionals who can influence consumers.”

13150

MCNABB SAYS there is strong evidence that people are becoming suspicious of what processing means and they want appropriately processed foods, and foods that are viewed as more natural.

He says consumers want to know where their food comes from and the consequences of that food for their health and wellbeing. He believes this is a trend that will grow.

“People are very concerned about the environment, climate change and sustainability and they are starting to add dimensions of that when they think about food,” McNabb explains.

“There is a rapidly growing trend towards ‘sustainable nutrition’ from a consumer perspective.”

The nutrition and milk role in a healthy diet is an intrinsic part of developing milk products for export, with particular emphasis on increasing the value of the dairy foods we export. McNabb says that’s why his research programme is very much a ‘value-add’ one.

“I see NZ as an exporter of agri foods as being a very high-end, delicatessen. You have to be the best if you want to do well; it’s no good being the second best,” he said. “The

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RURAL NEWS // OCTOBER 2, 2018

24 NEWS

Not even a wild Atlantic storm can stop the Irish MARK DANIEL markd@ruralnews.co.nz

THE IRISH sure know how to throw a good party, as experienced last month at the National Ploughing Association event at Screggan,

County Offally, Ireland.

Locally known as The Ploughing, the annual event is staged in a different place each year, regularly attracting 300,000 visitors during its three days.

It is a mix of compe-

tition ploughing – that’s only a very small part – trade displays and a funfair for kids.

The size of the event must be seen to believed, with the main area hosting 1700-plus trade stands. On display is the

latest and greatest in agricultural machinery and technology, livestock – the Emerald Isle’s favourite breeds – and the best produce of Ireland. And, of course, many businesses are fixated on liquids – made of water,

Despite Atlantic storms the crowds still came.

barley and yeast.

This year’s event, in the heart of Irish dairy country, was a little different from the norm, with Storm Ali coming in off the Atlantic on the eve of day two.This resulted in event being closed that day because of widespread damage to the ‘tented city’ and concerns about visitor safety.

But in true Irish spirit the organisers just tagged on Friday as an extra day and got on with doing business. Most attendees and exhibitors regarded the ‘big blow’ as a minor irritation.

Despite the battering from Ali, the attendance still hit 241,000 – nearly twice that of National Fieldays held at its permanent site at Mystery Creek.

A key feature was the Innovations Centre sponsored by Enterprise Ireland, which attracted key buyers and journalists from the Euro zone, North America, China and Australasia to witness the skills of Irish logic in solving onfarm problems with clever situations.

There’s a twostorey pavilion, with 60 exhibitors from Irish agri companies chasing a prize pool of €80,000 (NZ$140,000).

Guests were welcomed by ag sector leader James Maloney, whose infectious manner and enthusiasm contrasted with that of New Zealand Trade and Enterprise Commissioner Nick Swallow, who promoted NZ businesses. His Maori

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catch-phrases and talk of working as ‘one nation’ was a bit overdone and needed a re-think and a little business coaching.

Announcing the winners at the international networking dinner in Athlone, Minister Pat Breen said Ireland is fast becoming a global agritech innovation hub.

“The Enterprise Ireland Innovation Arena showcases the future of Irish agri-innovations on a world stage,” he said. “Farming and agribusiness are at the heart of the rural Irish economy, providing employment for over 250,000 people around the country.

“The government through Enterprise Ireland is working with the winners and finalists as they launch, innovate and scale their businesses to grow exports internationally and create jobs in Ireland.”

The general consensus was that the event is for doing business, with organisers who make things happen. The traffic plan worked, the site layout was great and this event will endure, having already clocked up 86 years.

That ability to ‘do business’ is an obvious message, and hopefully was not lost on a management group seen visiting from the National Fieldays Association of New Zealand.

• Mark Daniel was a guest of Enterprise Ireland at The National Ploughing Association Event.

11/09/18 3:17 PM

RURAL NEWS // OCTOBER 2, 2018

NEWS 25

New plant starts ‘exactly as expected’ NIGEL MALTHUS

OPEN COUNTRY Dairy’s newest milk processing plant is up and running, having started production on time in the last week of August.

Chairman Laurie Margrain said the Horotiu plant is “functioning efficiently and exactly as we expected”.

The new plant sits beside the AFFCO meat plant and corporate office at Horotiu, on the west bank of the Waikato River between Hamilton and Ngaruawahia.

OCD and AFFCO are both owned by the Talley’s Group.

OCD already had one plant servicing Waikato/ Bay of Plenty, at Waharoa.

It also has plants at Wanganui servicing Taranaki and Manawatu/Wanganui, and Awarua in Southland servicing the lower third of the South Island.

Margrain would not give details of the new plant’s throughput but said it was producing exactly as expected.

“And it had to produce on time because our other Waikato plant would not have had the capability to deal with all the Waikato milk.

“We signed up in Waikato all the supply required for that plant many months ago, before the end of February this year. So six months before it began operating we had all the milk required for

OCD chair Laurie Margrain

it,” said Margrain.

“We picked a due date 15 months in advance and it opened exactly on that day and it processed its first milk on that day.”

Margrain said the plant’s completion was not affected by the August 1 receivership of its builder, Ebert Construction.

“We had a few things to tidy up around the edges but they were largely complete so it didn’t have any material impact on us at all.”

The company’s chief executive, Steve Koekemoer, said in an August newsletter to suppliers that Awarua started processing milk on August 10, joining Waharoa and Wanganui in “a good start to the season”.

IN BRIEF HONOUR FOR FIRM LINCOLN AGRITECH Ltd was recognised at the recent annual Canterbury Westpac Champion Business Awards.

The R&D company owned by Lincoln University won the ChristchurchNZ Champion Innovation award, which honours businesses that have developed products, services or business model innovations to improve commercial performance, effectiveness or customer engagement.

Lincoln Agritech chief executive Peter Barrowclough paid tribute to the company’s scientists and research engineers who he says work hard to deliver leading-edge knowledge and technologies across the primary sector value chain.

Barrowclough says one of the company’s latest inventions is the HydroMetrics optical groundwater nitrate sensor. This can be put down wells to provide accurate real time nitrate monitoring in groundwater.

The sensor, now commercialised and on sale, costs only one third of the price of international equivalents.

“This is disruptive technology which will help us monitor the environmental impact of NZ’s primary production systems,” Barrowclough said.

OCD now has two milk processing plants in Waikato.

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40

COUNTRIES

100 000

farmers to connect Content supplied by Rabobank – Grow with the bank farmers for farmers with by worldwide , founded 12630

26 MARKETS & TRENDS

estimated to be down by 0.7% and 2% YOY, respectively.

100%

agricultural history

2018. Rabobank anticipates a further strengthening of the euro against the US dollar for the coming six months.

World milk supply growth slows In the three months to July, EU exports declined by 7% YOY

higher slaughter rates, limit the potential for milk

in LME terms. Due to challenging reference months and a

production growth. Nonetheless, the current dairy

tight market for fresh SMP, SMP exports declined by 8%

commodity prices are likely to translate into milk prices that

YOY. A combination of limited availability of milkfat for

butter production, improved domestic demand, and low

is the result of buyers securing supply ahead of new tariff

Global summary

Rabobank expects milk rent particularly drought, such as at the start rates, Mexico of the year.

Non-fat dry

regions as production Figure 3: EU milk production, Jan 2016-Jul 2018 As a result, Rabobank expects Q3 2018 production to is tested.

FurTHE SLOWDOWN in Bigmilk growth finish at +0.4% YOY.production For Q4 2018growth and 2019, ther Rabobank 14,500 increases in farmgate 7 milk 14,000 expects milkin production growth to remain below 1.0% YOY. milk prices are needed to Q2 2018, at just 1% 13,500 negate YOY, has trickled through As of June, EU farmgate prices are picking up again,the higher input 13,000 and to improve to Q3 2018. Hotacross and dry 12,500 averaging EUR 33.50/100kg Europe incosts August. volume growth. weather has been shrivel12,000 After an early summer break July, most commodities 11,500 The biggest uncerling pastures in in Australia, 11,000 lifted to higher price levels by mid-September.

Gouda prices tainty underpinning while drought condi10,500 have gone up by over EUR 100/tonne (+4%), to demand outlook is the tions in parts of northern 10,000 EUR 3,180/tonne since theEurope last week of July. potential SMP pricesglobal economic Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec and western have jumped by EUR 135/tonne, to EUR 1,585/tonne (+9%), while by the damage caused reduced milk volumes.

2018 2016 2017 whey powder prices

by EUR 50/tonne (+6%), trade wartobetween the US Whilewent theup onset of the EUR 830/tonne the same period. andprices China, along with the Newduring Zealand season has Butter Source: ZMB, Rabobank 2018 remained at defied high, but volatile price levels.

Driven by astrength of the growing the slowing yearcombinationon-year of relatively lowmilk stocks, of butter US dollar against most stocks caused butter exports to drop by 31% YOY. As a global pro-lower returns and SMP compared to cheese and whey, active buyers in lineWMP withproduction concurrencies. Plunging cur-result well duction trend, estimated livestock and of a lower andamong lower availability, covering their positions forBig the7closing of 2018, and Amersumption trends. This rencies in South flows for the duringmonths resulting in lower milkpaints a period of relative fat content. Nonetheless, ica continue to pressure Q3 2018 are for just 0.5% consumer confidence and price YOY – the lowest since EU milk production con4/11 Rabobank | Dairy Quarterly Q3 2018 | September 2018 stability and a balanced global market – but tinued its 17th month of economic growth, while 2016. with clear risk, as always. lifting inflation – all are National dairy herd consecutive year-on-year taking a toll on demand. numbers are shrinking in growth into June (+1.0%) While Rabobank Australia, Europe, and the and July (+1.0%), bringEU expects combined global US, as a result of producing EU milk production DROUGHT AND heat ers scrambling to manage milk supply across the up 1.6% YOY in the first overshadowed the major export regions to costs. With the excepsummer months in north- seven months of the year. tion of New Zealand, milk grow, production will Moving towards the ern and western Europe, only lift very modestly prices are now moving end of 2018, the longerstalling crop developover the next 12 months, higher in a number of term effects of the curment, causing heat stress

production increasing feed costsexports and have milk/skim milk powder set recordsgrowth throughtopart remain below higher slaughter of 1H 2018, with Julyrates, exports up 30% vs. the prior 1.0% year.

YOY.

thousand tonnes

Favourable ecolimit the to potential for Export Council, According the US Dairy US exports

nomic conditions across milk production accounted for 16.6%growth. of US milk production through July

Europe contributed Nonetheless, the cur2018.

Going forward, US exports face somehave strong headwinds,

consumprentthe dairy commodity with US dollar remaining firm to andincreases mountingin tariffs on US prices are likely transdairy products (see to Figure 5).

tion. As a result, Rabolate into milk prices that bank forecasts domestic As the US economy continues to push through Q3 2018 at result in positive cash EU demand dairy demand 4% growth rates, upbeat consumer should to marginsinto during theseasonal clos- demand expandfor bycheese, 1.0% into 2019. translate strong butter, ing cream months of 2018.Rabobank As a and products. forecasts US year-on-year result, Rabobank expects domestic dairy demand to growUS by 1.2% over the coming 12 lifting 2019 dairy product pricesCONSECUabove 2018 Q3months, 2018 milk production SEVERAL levels. to finish at +0.4% YOY. TIVE months of low milk For Q4 2018 and 2019, prices and rising forage

110 100 90 80 70

EUR

AUD

Jan-18

May-18

Sep-17

Jan-17

May-17

Sep-16

Jan-16

May-16

Sep-15

Jan-15

60 May-15

Index currencies vs. USD (Jan 2014 = 100)

Figure 5: Exchange rates, USD vs. exporters, 2014-2018

Sep-14

2018.

appreciation in the USD index since January 2018. Part of this

Jan-14

result in positive cash margins during the closing months of

US exports have exceeded expectations, considering a 5%

NZD

Source: OANDA, Rabobank 2018

With calving well underway, meaningf will start to appear as the weeks progr weather conditions persisting thus far combined with ample costs have reduced pro-feed availability conditions arising would derail a g ducers’ margins andthat temfirst half of the production season (2H pered year-on-year milk with lower comparable volumes in 2H production gains. Q2 very wet spring last year, particularly in

2018 year-on-year proInternational guidance duction increased just suggests a 65% conditions developing 0.9%, compared to 1.5% over the comin November 2018, and increasing to a 7 in Q1 2018. August milk March and May 2019. However, if an E production recovered, NIWA suggests that the event will not posting a 1.4% gain vs. the category, so it is not expected to be of prior year, bringing yearwhat has previously been experienced to-date growth to +1.25%, Fonterra has revised its 2018/19 farmg which trails the historical from NZD 7.00/kgMS to NZD 6.75/kgM annual average increase milk price for most farmers. Usually, th of 1.5%. farmers with sufficient confidence to u The feednational wheneveravernecessary, to overcome age feed MPPdeficits dairy (all milk arising.

However, with Fon price minus feed costs) 6: New Zealand milk productio was Figure less than US$ 7.00 during Q2 2018, down 3,500 nearly 30% from 2017’s 3,000 annual average, result2,500 ing in increased farm 2,000 exits and higher slaughter rates.1,500 Dairy cow slaughter 1,000 through July 2018 is run500 above the prior ning 5.1% year. 0 Series6 Jan 5-year Feb average Mar Apr May Jun Jul According to the US Source: DCANZ, Rabobank 2018 Dairy Export Council,

New Zealand

thousand tonnes

the current drought, such as increasing feed costs and

May-14

Moving towards the end of 2018, the longer-term effects of

excessive PKE use now in effect, more 2019 production – and particularly the season, with a drop in milk production few months and one of the key feed o the weather stall pasture growth. Rabo production growth of 2% for the full 2

Leading DNA testing, backed by science Export volumes for the three months to July 2018 were lower by 4% (31,700 tonnes) on the prior year – with milk flows largely flat over a comparable period, lower shipments to Algeria (30,700 tonnes) and China (16,000 tonnes), and patchy export volumes to South-East Asia (Vietnam, Singapore, Malaysia, and Thailand all lower) all contributing Illumina BeadChips factors.

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Based on global commodity price expe remainder of the 2017/18 season, Rab farmgate milk price to NZD 6.65/kgMS

Export volumes will trend above the p Access to custom andmilk publicly available Illumina BeadChips, As previously anticipated, production finished the 2018 and moving through to 1H 2019 including routine genotyping of:helped by yet 2017/18 season flat on the prior season,

•

•

flows, coupled with steady demand. H another season of very favourable autumn conditions with a expected to come under pressure 2H 2 Ovine HD arrays includes mild winter.XT, The LD new and season, however, has- started with aa variety of SNP lower production. bang, with growth over theas seasonal trough period from parentage panels well as a number of single gene marker June to August boosted by 5% YOY. Great weather, more tests. winter milk contracts, and additional cows carried over into XThelped array(see - includes theBovine new season Figure 6). 200 ISAG parentage markers as Australia finished the 2018/19 season

Australia

well as specific genetic defect and production trait SNPs.

milk, representing a lift in production o

6/11 Rabobank | Dairy Quarterly Q3 2018 | September 2018 Genotyping by sequencing

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ntinues to push through Q3 2018 at at consumer demand should asonal demand for cheese, butter, bobank forecasts US year-on-year Rabobank supports to grow by 1.2% over the coming obal agribusiness clients from earch analysts farm to fork2018 in dairy product prices above aring market outlooks

40

COUNTRIES

Australian dairy farmers will be hoping to maximise the NIWA suggests that the event willspring not beperiod in theby strong growing as much homegrown feed as category, so it is not expected to be of a similar intensity to possible. The outlook through the next few months is less what has previously been experienced. than favourable, with the latest seasonal outlook from the Fonterra has revised its 2018/19 farmgate price lower, Bureau ofmilk Meteorology pointing toward below-average from NZD 7.00/kgMS to NZD 6.75/kgMS – still healthy rainfall across amost of the major dairying regions. milk price for most farmers. Usually, this would provide major shortage of fodder in Australia has seen prices rise farmers with sufficient confidenceAto utilise supplementary Content supplied by necessary, Rabobankto– overcome Grow withany theclimatic bank by farmerstofor farmers significantly, withfounded buyers scrambling secure any available feed whenever issues or supply.

Hay stocks arefor low, and new-season supply is selling feed deficits arising. However, with Fonterra’s penalties

s, USD vs. exporters, 2014-2018

quickly. At the same time, alternative fodder supplies have Figure 6: New Zealand milk production, Jan 2016-Aug 2018 also become more expensive. as unfavourable seasonal

volumes increase – lifting 30%, to 83,000 tonnes. Australian dairy exports expanded by 5.7%, to 842,000 tonnes, in 2017/18.

There has been no shift in farmgate milk prices for the NEWS // OCTOBER 2, 2018 RURAL Southern export region. Based on Rabobank’s forecast,

MARKETS & TRENDS 27

commodity prices for the full 2018/19 season and a spot

currency rate of USD 0.73, the full-year average commodity farmgate milk is AUD 5.90/kgMS.

In Northern Australia, Norco announced an AUc 5/litre

thousand tonnes

Jan-18

May-18

Sep-17

Jan-17

May-17

Sep-16

Jan-16

May-16

Sep-15

May-15

farms (early investments impact, dairyinfarm operaincrease its milk price forChina September and October, to in cooling) should drive tors are making business conditions began to take AVERAGE assist their drought-affected suppliers. MILK prices 3,500 As a result, most dairy farmers are bracing for a sustained volume during summer decisions where possihold. in China were 1% lower 3,000 period of feed shortages and a margin squeeze. To mitigate The local retail and foodservice channels continue to face months, compared with ble to bring down costs.

For most dairying QOQ during most of Q3 2,500 the impact, dairy farm operators are making business some headwinds for dairy companies. Ongoing weakness in a poor summer last year.

Latest data shows a spike regions, autumn rainfall and flat year-on-year. But 2,000 decisions where possible to bring down costs. Latest data consumer spending has impacted the dairy case, and This slightly lowers fullin culling activity, with came later than normal, the prices in US dollars shows a spike in culling activity, with the number of dairy competition for shelf space remains strong. However, there 1,500 year production growth the number of dairy cows fell more significantly, by and the volume received cows sent to slaughter up 14% YOY for the month of July. are some reported bright spots across the dairy case.

1,000 to 2% YOY (2.2% previsent to slaughter up 14% was below-average. This 7% QOQ, with the rapid 500 For irrigation farmers in the Murray irrigation district, there activityofin the Australian dairy of sector YOYCorporate for the month created a very difficult devaluation the stays ren- apace ously). We retain our pro0 have been some slight improvements be going through a major duction forecast of 1.6% July. as the industry continues tominbi start in to seasonal the production vs. the US dollar AUD NZD Series6 2016 Oct Nov2017 Jan 5-year Feb average Mar Apr May Jun Jul Aug Sep Dec determinations of late, which will be welcome news.

Water period of transition.

Saputo has completed the sale of the for 2019.

Expectations of a season for dairy opersince April 2018 improvNZ 018 Source: DCANZ, Rabobank 2018 flows into major storages have supported lift in in Victoria, transferring ownership to Bega Chinese dairy prodlowerKoroit herdplant and reduced ators. ThetheNew South ing the competitiveness MILK PRODUCTION determinations and provided some relief to very high Cheese.

At the same time, Bega Cheese is raising more uct imports are expected feed availability have trigWales and Queensland of domestically produced finished the 2017/18 excessive PKE use now in effect, more uncertainty lies in 1H allocation prices. However, catchments are at lower to levels vs. capital to finance the purchase, but also with a WMP. purpose of to increase in 2H 2018, gered Rabobank to revise regions continue be milk vs. imported season flat on the prior 2019 production – and particularly the tail months of the the same time FINISHED lastthe year, and inflows are expected to remain investments. has announced which will help absorb downfuture the milk produc-Meanwhile, spring, with combined with hardest-hit by drought Our Kirin channel checks sug-a season – helped by yet AUSTRALIA season, a drop in milk production possible for final low because of the dry outlook.

At the same time, demand strategic review of the Lion Dairy and Drinks unit, which some of the milk supply tion forecast for Ausample feedand availability, conditions. gest that milk prices season the options 2018/19limited, seasonshould with hree months another to July 2018 wereof very few months one of theitkey feed for water will remain result in ahave sale of the gaining assets. more nes) on the prior year – with milk condigrowth from New Zeatralia.could Milkpotentially production is difficult see condiAs Murray a result,irrigation most dairy been favourable autumn litres of milk,strong repthe weather to stall pasture growth. 9.3bn Rabobank anticipates milk across the comparable period, lowerashipments district andawill a season offarmers high water forfor dairy production growth 2% for the resenting full 2018/19 season. land. started the new season tions arising that of would are prices bracing a upward momentum, tions with mild winter. liftmean in pros) and China The (16,000 tonnes), and farmer operators inorthe region. sustained period of feed The full extent of the with a fall of 4.2% YOY derailon a good flush priceduction driven by seasonal factors new season, however, Based of 3.3%, 300m globalspring commodity expectations across the o South-East Asia (Vietnam, trade war fall in terms output across the majorand first half of2017/18 the pro-season,litres. shortages and a margin in recent weeks. has started with a bang, However, the rate remainder of the Rabobank forecasts the Expectations of a lower herd and reduced feed availability d Thailand all lower) all contributing of trade and currency ity of dairying regions. duction season. squeeze.

To mitigate the Q2 2018 milk producwith growth over the sea- farmgate of growth began to slow milk price to NZD 6.65/kgMS. have triggered Rabobank to revise down the milk impacts is likely to play Australia milk production tion started to accelerate, Fonterra has revised sonal trough period from Export volumes will trend above the previous year for 2H d, milk production theboosted out in 2019 and beyond. is expected to trail last its 2018/19 farmgate milkto 1H 2019, leading 1H production to June finished to August Figuredue 7: Australian monthly milk production, Jan 2016Commented [A2]: Unit missing 2018 and moving through to higher milk he prior season, helped

by Great yet A key risk is the strong season through Q3 2018 price coupled lower, from NZ$ demand. grow by 1.1% YOY, based by 5% YOY. flows, with steady However, they are Jul 2018 avourable autumn conditions with a US dollar, which will by 3.5%, finishing the 7.00/kgMS to NZ$ 6.75/pressure 2H 2019, in line with on the Ministry of Agriweather, more winter expected to come under ason, however, has started with a 1,100 reduce the purchasing season down around 2%, kgMSproduction.

– still a healthy culture’s raw milk promilk contracts, and addilower the seasonal trough period from power of key importing at 9.1b litres. milk price for most farmduction index.

Demand tional cows carried over 1,000 by 5% YOY. Great weather, more regions.

Based on Rabobank’s ers. Based on global for dairy products in into the newover season nd additional cows carried into 900 • Keep up-to-date with the forecast, commodity commodity price expecChina also remained (see Figure 6).helped.

800 Australia finished the 2018/19 season with 9.3bn litres of latest food & agribusiness prices for the full 2018/19 tations across the robust during 1H 2018.

With calving well milk, representing a lift in production700 of 3.3%, or 300m litres. insights. Tune into season and a spot curremainder of the 2017/18 Rabobank is revisunderway, meaningful 600 RaboResearch Food & season, Rabobank foreing its forecast upwards production volumes will rency rate of USD 0.73, Rabobank | Dairy Quarterly Q3 2018 | September 2018 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Agribusiness Australia & casts the farmgate milk start to appear as the the full-year average com- for 2H 2018, to 3% YOY, NZ podcast channel. price to NZ$ 6.65/kgMS. from 2.5% YOY previweeks’ progress. With farmgate 5-year average 2018 2017 Q3 2018modity 7/11 Rabobank2016 | Dairy Quarterly | September 2018 milk is ously. We believe that mild weather conditions AU$ 5.90/kgMS. @rural_news Source: Dairy Australia, Rabobank 2018 better-equipped large persisting thus far early Australia facebook.com/ruralnews US exports accounted for 16.6% of US milk production through July 2018. Going forward, US exports face some strong headwinds, with the US dollar remaining firm and mounting tariffs on US dairy products.

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RURAL NEWS // OCTOBER 2, 2018

28 AGRIBUSINESS

Farm sales off the boil FARM SALES remain consistent, but are well below the levels seen in 2016, says the Real Estate Institute of NZ (REINZ).

The three months ended August 2018 saw 12 more farm sales than in the same period last year. Sales totalled 323 in the quarter ended August 2018 versus 311 in the same period in 2017.

REINZ data shows 1466 farms sold in the year to August 2018 -14.2% fewer than in the year to August 2017 (dairy farms -6.8%, grazing

farms -13.1%, finishing farms -13.9% and arable farms -16.7%).

The median price per hectare for all farms sold in the three months to August 2018 was $19,792 vs $27,928 in the three months ended August 2017 (-29.1%). The median price per hectare fell 7.1% vs July.

The REINZ All Farm Price Index fell 1.6% in the three months to August 2018 vs the three months to July 2018.

Six of 14 regions recorded increases in

Farm sales are well below the levels seen in 2016.

farm sales for the three months ended August

2018 vs the three months ended August 2017.

Manawatu/Wanganui (+16), Southland (+12) and Otago (+9) were the top three regions to increase the number of farm sales compared to August 2017. Canterbury recorded the biggest decline in sales (-14) followed by Auckland

(-11). Compared to the three months ended July 2018, 12 regions recorded a decrease in sales with the biggest drop being in Waikato (-21).

REINZ rural spokesman Brian Peacocke says sales volumes are about the same as 12 months ago but well down on the equivalent period in 2016.

“Onfarm conditions during August have been similar to last year, with heavy rainfall creating difficult ground conditions and pasture damage in the northern regions.

“Long wet stormy periods have resulted in heavy losses of newborn lambs in central to coastal North Island, and heavy snow has disrupted

farming and tourism in the central to southern South Island.”

Stuff happening within Fonterra is causing some producers to overlook that the milk price for the current season is better than last year.

Peacocke says beef and sheep farmers are benefitting from strong prices for beef and lamb, fruit and veges are at record high prices and interest rates and the exchange rate remain low, although higher fuel prices are hurting farmers.

“M.bovis preoccupies MPI and farmers, who expect transport and stock and station firms to be vigilant and fulfill their biosecurity obligations,” he says.

QUIET AND CONSISTENT • Dairy - minimal activity as seasonal activities dominate; five transactions only in August • Finishing - relatively quiet in the North Island apart from smaller blocks on the Kapiti Coast; a similar situation in the Tasman district; solid activity in Canterbury on smaller units; steady sales in Southland • Grazing – consistent sales in Northland; lighter activity in Taranaki, but reasonable sales in Canterbury, Otago and Southland • Arable – quiet NZ-wide except in Canterbury which is simmering • Horticulture – an unexpected surge of sales in Bay of Plenty and light activity in the Gisborne and Southland districts • Forestry – two sales in Marlborough region but minimal activity elsewhere.

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RURAL NEWS // OCTOBER 2, 2018

AGRIBUSINESS 29

Synlait milks another good year NIGEL MALTHUS

CANTERBURY MILK processor Synlait nearly doubled its profit for the financial year ended July 31.

The $74.6 million net after tax profit (NPAT) compares with $39.5m for the same period last year. Top line revenue increased from $759m to $879m.

“That is a gratifying 16% growth in top line and an 89% growth in bottom line,” chairman Graeme Milne says.

Milne said these results were achieved in a period of large investment and a renewed focus on the future. He added that increased finished infant formula sales had been enabled by several investments in blending and consumer packaging.

“In November 2017. we completed our second Dunsandel wetmix kitchen.

The same month we commissioned our Auckland blending and consumer packaging facility. Both these projects have allowed us to increase our finished infant formula capacity.”

The result comes in the company’s tenth year of operation and compares with Fonterra’s near $200m loss.

“This has been a milestone year for Synlait as we grew in capability and

Synlait’s new chief executive Leon Clement.

capacity. We’re stepping up our performance and we’re looking ahead at where we want to be,” Milne says.

Synlait co-founder John Penno stood down from the chief executive role in August but remains on the board.

“John has been a wonderful leader for Synlait, taking the company from start-up to a market capitalisation of over $2 billion in ten years,” Milne says.

“New chief executive Leon Clement has stepped seamlessly into his shoes and is the ideal candidate to take Synlait into FY19 and beyond.”

The company, which previously this year announced a move into the domestic milk market under the Everyday Milk banner, has signalled a move into cheese manufacturing with the purchase of “selected assets” of South Canterbury’s Talbot Forest Cheese.

The deal is on property, plant and

MILK PRICE SLIPS

equipment at a new site at Temuka, the consumer brand Talbot Forest Cheese and customer relationships.

“The proposed acquisition builds on our existing high-quality, flexible dairy manufacturing capabilities that can be tailored to meet customer needs,” Clement says.

“We will be able to manufacture a variety of cheese products that complement our existing products, while also diversifying our revenue streams.”

The company intends to grow the Everyday Dairy category in New Zealand (a $2 billion market) and overseas.

Clement says the company expects to spend $30m to $40m, with Synlait taking over management and operational control of Talbot next August, subject to the completion of a capital works and other conditions.

Earlier in the year, Synlait announced a partnership to supply Foodstuffs South Island (New World, Pak’n’Save, Four Square) with private label fresh milk and cream from April 2019.

The company says its construction of a packaging facility in Dunsandel, which will produce the fresh milk and cream, remains on track.

SYNLAIT’S FINAL average total milk price for 2018 was $6.78/kgMS. This included a base milk price of $6.65/kgMS (2017 base milk price was $6.16/kgMS) and seasonal and average value-added incentive payments of $0.13/kgMS. Synlait says it forecast milk price for the 2018-19 season is now $6.75/kgMS; it blames declining commodity prices for putting pressure on its opening forecast of $7.00/kgMS. It says the current forecast is mitigated by a weakening NZ dollar and the new forecast $6.75 kgMS anticipates an “improvement in commodity prices in the medium term”.

“Our milk suppliers are a hugely important part of what we do here at Synlait, and we really appreciate the role they play in our success as a company,” chief executive, Leon Clement says.

“We’re looking forward to partnering with other like-minded farmers in Waikato when we begin operations there in 2019-2020, and we’ve been impressed by the positive responses we’ve had so far.”

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RURAL NEWS // OCTOBER 2, 2018

30 OPINION EDITORIAL Let the games begin FONTERRA’S UPCOMING director elections will be an interesting contest with a potential shake-up on the cards, which its board surely needs.

Currently the dairy co-op is copping robust criticism of its performance and future strategy.

Its performance has been under fire from all quarters including from Government ministers.

The farmer-owned cooperative has up to 11 directors. Seven must be shareholders with dairy farming interests, while four are independent and appointed by the board. Former chairman John Wilson and long-servicing director Nicola Shadbolt are not standing again, so two of the three seats up for contention this year are vacant.

Five candidates have put up their hands for the three vacancies: the incumbent director Ashley Waugh, Zespri chair Peter McBride and Ministry for Māori Development chief executive and Māori Television chairman Jamie Tuuta, who all came through Fonterra’s ‘independent’ nomination system.

Adding interest to this year’s vote are bids by former director Leonie Guiney – who was dumped from the board last when she failed to make it through this same nomination process – and multi property-owning Canterbury dairy farmer John Nicholls. Both have come to the contest via the ‘self-nominating’ process.

The two chose not to take part in Fonterra’s ‘independent nomination process’ in which candidates are nominated by the board after being recommended by an independent selection panel. Instead they relied on getting the signatures of 35 farmer shareholders to support their nominations.

Guiney has recently settled a legal wrangle with the Fonterra board after suing it for defamation, when it took court action earlier this year gagging her from speaking about co-op business.

All the candidates standing need to restore farmer and public confidence in Fonterra. A good start would be an end to the ridiculous board-controlled ‘independent’ nomination process. While few would dispute the quality of all the candidates who have come through this time, the perception of this process is that the board only allows the candidates it wants to run for election.

Meantime, the ‘self-nomination’ process has also produced two good candidates, showing that would-be directors of quality can be found without the need for Fonterra to have to artificially ‘manufacture’ them. Full and proper democracy should be the hallmark and standard of any farmer co-operative.

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight ......................................... Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ....................................... Ph 09 913 9632 CONSULTING EDITOR: David Anderson .................................. Ph 09 307 0399 davida@ruralnews.co.nz

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

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Own goal

Face palm

A MATE of the Hound who recently travelled to Ireland found that country’s airport biosecurity rather lax. On the flight’s approach to Dublin came a request that passengers involved in agriculture should make themselves known to the Department of Agriculture. This old mutt’s honest mate, after passing the immigration check and collecting his bags, asked an Irish customs official who he should speak to about biosecurity.

“What’s biosecurity? I’m looking after border security,” was the reply. Our Kiwi traveller said he was off a farm in NZ, with the potential for disease, etc. “Aw, that’ll be the Department of Agriculture you’ll be wantin’… over there to the right. But I don’t fancy your chances, there’s never anyone there.” Sure enough, no one there; he waited a few minutes but still no one appeared, so our traveller just wandered off.

THE HOUND had to laugh on hearing that the sanctimonious, whining vegan cafe owner who refused to serve cow milk to customers has now closed his shop and will walk the length of New Zealand barefoot in protest. Morgan Redfern-Hardisty altered his menu in July to ban real milk, deciding to serve only plant-based products in an attempt to reduce his environmental impact. However, the Mangawhai Activity Zone (MAZ) Charitable Trust which owned the land, premises and paid all the overheads for the café, insisted – after public complaints – that the café manager must include dairy options for customers who asked for it. Your old mate reckons this spoilt, attention-seeking, new unemployment statistic has misspelt ‘walker’ and is in fact just a wanker.

YOUR OLD mate realises he risks an outpouring of hatred and bile from the tin foil hat-wearing types who support the anti-1080 movement, but he reckons they have proven beyond a doubt that they are total nutjobs. This old mutt suggests the blowback for the anti1080 cause has been irreparably damaged thanks to the ‘staged’ killing of native birds during the group’s recent protest at parliament. Any public support the group hopes to garner for its crusade evaporated faster than the toxic effect of 1080 hitting water (that will rile them) when it turned out the supposed 1080-killed native birds – those they brought to their protest outside parliament – had, in fact, been bludgeoned to death. Talk about shooting yourself in the foot.

Mind you the Hound thinks this is a good thing!

YOUR CANINE crusader cannot believe how bad a job Fonterra’s public relations team does for the dairy co-op. Despite employing a huge team of spin doctors who are paid well to enhance and protect the co-op’s reputation, the public face of Fonterra goes from bad to worse. Right on the heels of announcing a near-$200 million loss for the past year, reports have come to light about the co-op’s Europe staff flying at least 9000km to a sales and marketing meeting at a Southern California beach resort town. The company refused to give details of the meeting at the tourist and surf mecca Huntington Beach, which NBR reported was attended by up to 200 staff from the co-op’s New Zealand milk product division just when it was announcing, last week, a historic annual loss of $196 million.

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RURAL NEWS // OCTOBER 2, 2018

OPINION 31

Make your vote count STIMULATED BY Fonterra posting a loss of $196 million, business analysts, academics and journalists have put forward their views on what is wrong with the cooperative and what is needed to sort it out.

Some have asked questions, which might or might not imply they know the answers. Others have called for change, not always making clear what that change should be or what the outcome, including the unintended consequences, might be.

At various meetings for farmer shareholders

a more credible goal: “Farmers don’t want Fonterra to be the biggest, they just want it to be the best”.

It could have been the best in grass-fed milk, and it would have been the biggest as well. And though hindsight is a wonderful thing, some

paint ball, assault courses, boot camps – or sun, sand and surf. However, California doesn’t have a Fonterra milk pool, so the choice of meeting location remains unexplained.

Adding to frustration,

commentators have been pointing this out for many years.

It appears that the directors at the time were convinced that offshore investment would return benefits to NZ farmer shareholders, as it does for LIC, PGG, Affco… in fact it is difficult to iden-

tify a company that has expanded offshore successfully and yet is still owned by NZers.

This being the case, shareholders voting for directors need to get beyond the electioneering rhetoric and pie-in-thesky vision and consider the knowledge and track

record of the candidates.

Is their expertise aligned with the challenges the company and the shareholders are facing? What have they done to help the industry? Do they have a credible strategy for creating a better future?

More elections are

coming up. Over to you.

• Dr Jacqueline Rowarth CNZM CRSNZ HFNZIAHS has a PhD in soil science and has been analysing agri-environment interaction for several decades. She is a candidate for the board of DairyNZ @rural_news facebook.com/ruralnews

A good start goes a long way.

Statements have been made about getting the basics right and working harder, resulting in some incredulity from the shareholders. shareholders are still in the dark about the value of the overseas activities in which their cash has been invested. Clearly Beingmate in China is a financial disaster. The finances behind China farms, however, are still being declared in various ways. And the financial advantage of the individual activities in Australia, South America, Netherlands, Ukraine and the rest of Asia are not known.

Transparency is desired by most shareholders in any company.

Fonterra, with its role in setting the global milk price, is the target of global observation. Finding the balance between openness and commercial sensitivity is difficult.

Shareholders want to know more details in the accounts, but giving information freely could undermine the position of the company. The role of the directors in the decisions behind presentation of the accounts is unknown. And most are not accountants and so rely on advice from Fonterra management.

This is the crux of the problem. Fonterra management has been set on global dominance without considering what the farmers actually want. Dr Richard Cookson, a Fonterra supplier at Springdale, has articulated

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NZ-wide, the directors have accepted blame for the dismal annual result.

They’ve said that the buck stops with them and they acknowledge they haven’t achieved the outcome they wanted. What has been absent is the credible next step.

Statements have been made about getting the basics right and working harder, resulting in some incredulity from the shareholders.

Rather undermining the promises, at the same time as the financial loss was being discussed with shareholders, 200 Fonterra staff from around the world had been flown to a meeting at a California beach resort, described as a ‘tourist and surf mecca’.

This news has done little to reassure shareholders that the basics are right or that people really are working hard.

Meetings do, of course, have to occur somewhere.

And in a global company with milk pools in several countries it might not be surprising that they occur in countries other than NZ. The concept might be to show staff what is happening -- the good, the bad and the lessons to be learned.

This would be the type of team-building and leadership development that has been shown to be more successful than

RURAL NEWS // OCTOBER 2, 2018

32 OPINION

Dos and don’ts of selling raw milk KAREN HOWARTH

IT IS now legal to sell raw (unpasteurised) drinking milk to consumers.

The rules for producing and selling raw drinking milk ensure the health risks are minimised while also acknowledging consumers have a choice in what they drink.

Farmers who sell raw drinking milk to consumers need to register their operation with the Ministry for Primary Industries (MPI), follow strict hygiene rules when har-

vesting, bottling, storing and distributing raw milk, test their milk regularly and keep contact details of their customers so that people can be contacted in case harmful bacteria is found in their milk.

Farmers can find out more about the requirements in the ‘selling raw milk to consumers’ page on the MPI website (www.mpi.govt.nz).

MPI manager food compliance, Melinda Sando, says farmers may not be fully aware of what the definition of sale actually covers.

“It covers, for exam-

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ple, instances where they supply raw drinking milk to guests as part of a paid farm stay, and giving samples away as part of a promotional activity, for example during open days. There have been instances of people, including children, becoming ill as a result of drinking raw milk in both these scenarios.”

If farmers want to provide raw drinking milk to farm visitors and minimise the risk of people getting sick they must follow the same advice MPI gives to all consumers of raw drinking milk: • Keep the raw milk chilled in the coldest part of the fridge (usually the

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“Even if you’re serving raw milk to friends or visitors, make sure you let them know what the risks are,” says Sando.

• Karen Howarth is a communications advisor at MPI.

RATHER INSULTING DON’T GRANDPARENT emissions, says Farm Forestry Association president Peter Weir.

I am less interested in Weir’s arguments on emissions than I am in him three times mentioning dairying’s right to pollute (Rural News, Sept 18).

There are subtle and not-so-subtle ways of getting your message across and three times attaching the ‘pollution’ word to dairying is definitely not subtle. In fact, it is bloody insulting.

There are subtle and not-so-subtle ways of telling someone to pull their heads in too.

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RURAL NEWS // OCTOBER 2, 2018

OPINION 33

Better irrigation beats tax on water ANDREW CURTIS

IRRIGATION NZ believes that imposing a nationwide water tax would be unworkable.

Instead, the biggest improvements in water use efficiency would be achieved by allowing irrigators to continue to modernise their irrigation systems.

Other countries have considered water taxes but all have abandoned such ideas because of the complexity and expense.

The Interim Tax Working Group report touches on some of the complexities of a water tax, e.g. the need to address Māori rights and interests; and many more issues are yet to be examined.

But it is good to see the report recognise that many groups use water, and that taxation would not just affect irrigators. In Canterbury, for example, 55% of water is consented for hydro-generation, 29% for irrigation and 16% for other uses.

The tax working group sees a water tax as a way to increase water use efficiency. But regulations and limits on water availability are already driving the adoption of more efficient irrigation systems. This is reflected in NZ agricultural produc-

tion survey statistics that show a big drop in the use of flood irrigation systems which now service only 5% of irrigated land.

Modern irrigation systems cause less water and nutrient run-off, which is good for the environment. But they are expensive: in Canterbury some irrigators will need to spend a total of $80 million replacing their irrigation systems to meet new council rules.

The Government and the primary sector agreed this year that audited farm environment plans should be introduced nationwide to improve farm practices, including irrigation efficiency. Irrigators have already spent a lot of time and money on meeting the requirements of farm environment plans.

A blanket national water tax would make it more difficult for farmers and growers to install more efficient irrigation systems. It would reduce the amount of money available to change farm practices by adding a new cost for irrigators.

Other countries are spending more on water infrastructure as governments recognise they need to store water in an increasingly volatile climate to provide commu-

IRRIGATION NZ Irrigation NZ is a national not-for-profit group for farmers and growers who use irrigation. Its members include many irrigation schemes and irrigation service companies. It supports creating an environment for the responsible use of water for food production through the provision of training and resources to help irrigators use water efficiently.

nities and food producers with secure water supplies.

A water tax could make the development of new water infrastructure like the Waimea dam less

viable at a time when NZ must also prioritise developing more rural and urban water storage.

• Andrew Curtis is chief executive of Irrigation NZ

Centre pivot irrigators are among the most water-efficient means of irrigation. Regulations and limits on water availability encourage their use by farmers.

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RURAL NEWS // OCTOBER 2, 2018

34 MANAGEMENT

Data, compliance, records all seen to FARM SOFTWARE company FarmIQ says it can manage the data farmers must collect and provide to prove their compliance and sustainability.

Darryn Pegram, the company’s chief executive, says farmers want to do the right thing by the environment, animal welfare, biosecurity and staff safety, but many are hampered by a lack of the necessary systems and skills.

“Farmers are increasingly asked to report

on every aspect of their operations, for example animal welfare, environment management and health and safety. The time burden of compliance is starting to take a toll on farmers.”

Pegram says farmers now need an unprecedented level of skill to record and measure the many variables that prove their business’s compliance.

“Business Insider Intelligence (a research service) estimates that 1

About FarmIQ FarmIQ is a farm management software company that services 2000 farms NZ-wide.

It holds on record at least 40 million animal weights and 30 million animal health treatments.

million data points will be generated every day on farms by 2022, compared to only 100,000 in 2014 – a vast amount of data to manage.”

He believes the ulti-

mate solution is for NZ agriculture to settle on a common platform for collecting, analysing and presenting data in a form that proves farmers are compliant, adds value to their business and creates more value for ‘NZ Inc’.

“This is why FarmIQ is stepping up as the national platform for farm reporting, analysis, compliance and quality assurance,” Pegram says.

The company this month formally launched a partnership with the rural supply company Farmlands: it rolled out its SafeFarm health and safety software system.

“FarmIQ is a clearing house that receives data from multiple sources,” Pegram says. “Used in the right way, it can help farmers ensure optimal use of inputs to maximise farm outputs and ultimately profit, and to minimise waste, overuse and the environmental degradation that can result.”

Other pastoral companies using FarmIQ include LandCorp and Synlait.

FarmIQ provides a means for Synlait to validate its Lead with Pride

FarmIQ’s Darren Pegram.

“FarmIQ is a clearing house that receives data from multiple sources. Used in the right way, it can help farmers ensure optimal use of inputs to maximise farm outputs and ultimately profit, and to minimise waste, overuse and the environmental degradation that can result.” certification system. It provides Synlait’s farmers with management data and an auditable trail proving they comply with the dairy company’s environmental, health, safety and animal welfare requirements.

Pegram says that as the data demands on farmers get more complex -- to include, say, greenhouse gas emissions, stock movement, riparian planting and nutrient losses -- FarmIQ provides a ‘one stop’ insight into a farm’s performance within these rules.

“For farmers having to comply with new stan-

dards on gases and nutrients, our system enables them to generate auditable reports assuring them and their customers that their efforts are sustainable and can be proven.”

As farmers collect more data they can also “become even smarter and more sustainable” using FarmIQ industrywide, says Pegram.

“FarmIQ already has 40 million animal weights in the system, and we know every aspect of 6 million animals, including 30 million animal treatments. The potential exists to use this data for predicting farm perfor-

mance and recommending more sustainable farming outcomes using artificial intelligence and machine learning.

“The effectiveness of certain practices and treatments can be verified against big data sets, rather than trying to extrapolate from relatively tiny, isolated field trials.”

Pegram says no other company has developed such an all-encompassing system for farmers.

“FarmIQ is the needle that threads together all this technology and the data it collects, into something usable on farm and beyond.”

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RURAL NEWS // OCTOBER 2, 2018

36 MANAGEMENT

Farmers and growers to tell their story FARMERS AND growers are being encouraged to enter this year’s Ballance Farm Environment Awards.

The awards are organised by the New Zealand Farm Environment Trust, a charity promoting sustainable farming and growing.

Trust chair Joannne

van Polanen, who farms in Mid-Canterbury, says the primary sector needs to tell its stories.

“These awards enable farmers and growers to share the positive actions they are involved in with their local community and to a wider audience.”

National judging coordinator Andrea Hanna

says all farmers and growers, including orchardists, vegetable growers and viticulturists, are eligible to enter.

“Each entrant is visited by a small group of rural professionals who identify opportunities to improve the financial and environmental sustainability of the farm

business. It’s not just targeted at top farmers. The awards are an important opportunity to grow and learn from others.”

Hanna explains that the judging teams have a wide range of skills and look at all parts of the farming business. Judging is relaxed and friendly and climate factors are

taken into account.

“In the past we’ve found farmers can be reluctant to enter if their farm has been affected by unseasonal weather or some other event. But the judges understand that unexpected challenges are part of farming and will look beyond this at the wider picture,”

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RURAL NEWS // OCTOBER 2, 2018

Farmers step in to help protect kiwi IIT’S AN early winter morning, dark and chilly, but Northland dairy farmer Jane Hutchings couldn’t be happier.

She’s leaning over a fence surrounding a stand of native bush, and completely tuned in to the soundtrack of her favourite music.

With husband Roger, Jane is one of dozens of dairy farmers helping achieve the Kiwi Coast dream of thriving kiwi, roaming freely throughout Northland, nurtured and cared for by local people.

Kiwi Coast got underway five years ago, building on work done by the Landcare Trust when Helen Moodie, who is now DairyNZ’s Northland sustainability specialist, provided guidance to people keen to look after the kiwi that were increasingly appearing in their backyards.

“Kiwi Coast recognises that looking after kiwi is not locking them up and throwing away the key,” Moodie says. “We have kiwi in our productive landscapes here in Northland where they’re eating the worms and other insects that are prolific in our pastures; and through Kiwi Coast we are growing the kiwi populations by managing their threats.”

Kiwi Coast is a joint project by 120 entities, says coordinator Ngaire Tyson. Community led groups including dairy and other farmers, lifestyle and other land owners, landcare groups, schools, iwi and hapu make up 105 of the initiatives, with the remainder Northland agencies and businesses, including forestry companies.

“The 120 entities linked into Kiwi Coast now look after nearly 150,000ha stretching from the Aupouri Peninsula in the north to Mangawhai Heads in the southern region of Northland. Everyone has a shared vision of creating a corridor of comparative safety for kiwi.”

Tyson, who previously worked with Moodie at

Landcare Trust, says the recipe is a simple one: landowner engagement, killing pests and controlling dogs.

The main predator on kiwi is stoats which kill 95% of kiwi chicks before they reach 12 months.

And there are the dogs.

Man’s best friend is the biggest threat to adult kiwi and this is why Kiwi Coast and its affiliated groups encourage dog owners to control their animals.

She says farmers, as landowners, are vital in Northland’s kiwi protection work.

“Kiwi Coast has many farmer champions, and when others in the community see farmers are involved they want to help too. They say ‘we can do this; we can look after our patch’. Their imagination is captured.”

She says kiwi can do well on farms.

“Many farmers, have fenced bush, wetlands and stream margins to exclude stock, which helps protect kiwi habitat. And farms can be safe places for kiwi because farmers control their dogs to protect their stock.”

Jane Hutchings, whose family dairy farm is near Kerikeri, says having kiwi living and breeding on their farm is inspiring.

“We’re blessed that many people in Northland have the same passion to protect kiwi.

“We always knew there were kiwi on our dairy farm, although rarely sighted. The severe drought in 2009 brought kiwi out of the bush foraging for food and water.

After seeing six kiwi out in the paddock one night we contacted the Kiwi Foundation to get advice on how to help them, not only through the drought, but also long term.”

The Hutchings soon learnt the big threats to kiwi were pests and uncontrolled dogs.

With support from Northland Regional Council (NRC), they pulled together a pest attack group of farming neighbours and others in their immediate area, and

so the Puketotara Landcare group was formed.

The group now protects kiwi in an area covering 5000ha from Kerikeri to Puketi Forest.

The group is also

MANAGEMENT 37 Northland farmer Jane Hutchings with a kiwi on her farm.

funded by Kiwis for Kiwis and Fonterra’s Grass Roots initiative.

“As well as helping protect kiwi, our work is seeing the surrounding bush flourish.”

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RURAL NEWS // OCTOBER 2, 2018

ANIMAL HEALTH 39

All farmers responsible for NAIT “I understand that some older farmers might struggle with the computer, but that’s not an excuse. You can call on NAIT-accredited information providers or assign a delegate and they can help with tagging, registering and making sure your NAIT account is kept up to date.

“If you don’t have a wand [livestock scanner], find someone who has and see if they are willing to share it. After all, it’s something you use periodically; otherwise buy one and the benefits will come.

“We use a Tru-test scanner that counts the number of cattle as you scan.

“It is a clever tool as it ensures you don’t scan the same animal twice.

You can link it to your smartphone and do the transfers on the spot without leaving the paddock.”

Once animals are tagged and registered, future movements must be recorded and confirmed in NAIT within 48 hours of the movement occurring, with an accompanying animal status declaration (ASD) form.

Farmers, livestock reps and the wider industry should “care a bit more” about their NAIT obligations, Brown says. That means recording online details about the animal type, birthplace, the tag number/s and whether it is intended for beef finishing or dairy sector finishing.

“It is critical to be privy to the information being recorded. The current situation [M. bovis] is bad and could be a lot worse even. Providing these details builds our resilience against a livestock disease and our capability to manage it,” he adds.

“It’s time for farmers to see value in the NAIT system and start using the data to their advantage, to improve their farm, productivity and

their defence against a biosecurity incursion.” @rural_news facebook.com/ruralnews

Taranaki sheep and beef farmer Nick Brown says it is every farmers’ responsibility to ensure all livestock coming on or going off farm are NAIT compliant.

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MAKING SURE all livestock coming on and off farm are NAIT tagged and registered online is every farmers’ responsibility, says Taranaki farmer Nick Brown.

He is a sheep and beef farmer who rears Friesian bulls and winters dairy heifers with his wife Sophie on a 530ha hill country property.

Lifetime animal traceability starts at the farmgate.

That means all cattle and deer should be tagged within six months of birth or before they move offfarm, whichever comes first.

Once the animals are tagged, they must be registered in NAIT within seven days.

“I can’t understand why some farmers are still not doing this; they must be simply lazy or ignorant,” Brown says.

“We had a situation recently where we had heifers coming onfarm which weren’t tagged; we’ve also encountered this with calves too. It shouldn’t be this way, especially after the M.bovis outbreak and all the publicity.”

Brown urges if you have this happen, pull up those farmers up who are doing this.

“As a buyer, you have a responsibility as much as the seller to be stringent,” he adds.

“You have to consider the implications for our agriculture exports; without lifetime traceability we are risking our product integrity and reputation for food safety in the globally competitive marketplace.”

As a younger farmer, Brown reckons most of his generation are equipped and savvy enough to see to their NAIT requirements, with the recording of movements between farms not requiring a great deal of nous.

He believes technology is not a barrier and farmers should be using it more to their advantage.

AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ACVM No: A4769. ®Registered trademark. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz NZ/SPV/0917/0002(1) Ref 1. Wilkins, M, O’Connell, E and Te Punga, W. Vaccination of sheep against Toxoplasma abortion.

Surveillance December 1992

RURAL NEWS // OCTOBER 2, 2018

40 ANIMAL HEALTH

Gumboot test a good feed pad sign HELEN THODAY

EIGHT HOURS sleep is a necessity for humans and likewise for cows; their sleep patterns may differ from ours but they also need equal lying-down

time.

Trouble is, wet weather can make lying down understandably less appealing.

For farmers using stand-off pads to protect pasture, DairyNZ and

AgResearch has developed a simple test a farmer can do with gumboots and an online calculator to tell when a pad is too wet and needs maintenance.

Research shows that

when the moisture content of a stand-off pad’s surface reaches 75%, cows will stop lying down.

The stand-off pad gumboot test and tipping point calculator are both available on the DairyNZ

Leave nothing to chance this season

call on the best

DairyNZ and AgResearch have developed a simple test farmers can do to tell if pad is too wet.

website.

We tested the tools with farmers to ensure they made the grade.

North Waikato farmer Phillip Buckthought and his contract milkers Brett and Bridget Dewar were among those to trial them.

Buckthought, who has three stand-off pads on his Paeroa farm, tested the tipping point calculator.

“It gives a good idea of when you need to top your pad up with fresh wood chip,” he says.

“We have found post peel by far the best option and it’s important to scratch up when spreading it. Attention to detail is vital.”

The Dewars and their staff trialed the gumboot test. Bridget went on the pads every day – and staff members once a week – to check with their gumboots how slushy or dry the pads were.

“The gumboot test gave us an earlier indication of whether we needed to give a stand-off pad a rest for a couple of

days or a few weeks.

“With the new information, we rested one pad for a couple of days whereas before we would have kept using it. Doing it this way is better for the cows because they lie down more on the standoff pad and less in the paddock, which is what you want.”

As part of the trial, they monitored for one week how long the cows lay down on the stand-off pads and in the field. The cows were on the pads from 3pm to 9am and on pasture for six hours.

“We learned that you have to watch the cows when they go out to the paddock. If they lie down it means they’re not resting on the pad enough.

They should be eating when they’re in the paddock not lying down,” Bridget says.

“The gumboot test should be standard practice. It’s brilliant.” www.dairynz/stand-offpads

• Helen Thoday is animal care team manager at DairyNZ.

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A PETFOOD company owner who appeared in Hamilton District Court earlier this month was sentenced to six months community detention, 180 hours of community work and banned for five years from owning or managing production animals.

His company was sentenced to pay a $90,000 fine.

The Waikato company Down Cow Ltd and its owner Alan Martyn Cleaver had long been investigated by MPI over bobby calf abuse. This began in 2015 and has already resulted in a slaughterman from the company being jailed in 2016 after MPI appealed his initial sentence of home detention.

MPI’s manager compliance investigation, Gary Orr, said the abuse was unacceptable.

“These are vulnerable young animals and they need to be treated humanely and ethically.

“The abuse was not acceptable in anybody’s book.

“It’s always unfortunate to have to take prosecutions in the first place, however we were pleased to see the ban on owning or exercising authority over production animals which we argued for strongly.”

RURAL NEWS // OCTOBER 2, 2018

ANIMAL HEALTH 41

Dealing to worms crucial to stock STRONG PRICES for beef and lamb mean the marginal return on good animal health is excellent, says Boehringer Ingelheim Animal Health NZ. Premium health and weight of stock, either for breeding or slaughter, are crucial, says the company’s technical veterinarian Richard Sides.

Most farmers know that to achieve these includes giving their young stock “a good drench,” he says.

But Sides says the start of a new season with a crop of young stock is also a good time to give the ‘good drench’ practice closer scrutiny. So he is urging farmers to develop, with their vet, a well-considered parasite control strategy that tackles resistance and effectiveness issues they may not know about in their herd or flock.

“Talk about triple resistance developing has been heard in recent years.

That’s always a possibility because the minute you put a drench product into an animal you are applying selection pressure on the parasite population inside it.”

However, he maintains there is no need to panic, even if farmers don’t know what their property’s status is.

“You don’t know what you don’t

Boehringer Ingelheimn vet Richard Sides.

know, so the most proactive approach is to work with your vet to find out -starting with faecal egg count (FEC) testing,” Sides says.

“Do this as a proper, planned reduction test (an FECRT), seeing what the populations are before and after a drench programme. Just doing a oneoff post-drench check means there are simply too many possibilities you

could get the wrong information, use the wrong product and possibly make resistance issues worse.”

He says a vet skilled in parasite management will establish what the efficacy of particular drenches is on the farm. They will also help work out ways to maintain a refugia population on the farm.

At its simplest, it will be determin-

ing a proportion of the flock or herd that is not drenched, to ensure resistant parasites are well diluted within the worm population. A key factor is ensuring that drenched animals, in particular lambs, do not go straight onto ‘clean’ (parasite larva-free) pasture.

“It is important to also ensure the refugia (undrenched) animals are mixed around the farm and across mobs to disperse that population of refugia parasites. And because of this, it is essential that the resistance status of those parasites is known – hence the need for proper reduction tests. These are easier and cheaper to do than most people realise” Sides has also worked with farmers on other management practices that ultimately result in lower parasite populations in young stock.

“One large client was concerned this year about minimising numbers of tail-end lambs and they decided they wanted more feed on the hills earlier in spring to get the lambs fed better and away earlier.

“That led them to look at using fertiliser early to get early grass growth on steeper country for the single-bearing

ewes, and rational pre-lamb ewe treatments on the flats.”

Time and attention to good dam health prior to calving and lambing will also reduce young stock’s vulnerability to parasite levels and the need to drench more than necessary.

“Having your ewes or cows in top notch condition means less stress in spring, better milk production, faster growth rates and getting young stock away quicker, reducing parasite exposure in the process.”

Avoiding risky management practices, like putting freshly drenched young stock onto brand new pasture where there is no refugia parasite population, is essential. Effective quarantine drenching is also vital for bought-in stock, again requiring knowledge of drench-status.

M.bovis is presently out of farmers’ hands, but responsibility for parasite management still lies with the individual farm and their personal vet.

“A sound parasite control plan will deliver returns within the season, by maximising growth of young stock and beyond as the risk of perpetuating resistant worm populations is delayed onfarm.”

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RURAL NEWS // OCTOBER 2, 2018

42 MACHINERY & PRODUCTS

Cutting crops without cursing MARK DANIEL markd@ruralnews.co.nz

GERMAN HARVESTER specialist Claas has released new cutter-bars for its Lexion range of combine harvesters, with two configurations and three cutting widths.

Available in 10.8, 12.3 and 13.8m cutting widths, the Convio and Convio Flex draper cutter-bars are said to improve performance particularly in difficult conditions.

While the Convio unit is ideal for conventionally threshed crops like cere-

als or canola, the Convio Flex offers a flexible knife bar for increased performance in crops such as soya beans, peas or grass seeds.

Convio Flex offers a flexible knife, table and side-belt design, allowing excellent ground adaptation to harvest low-fruiting stalks with minimal losses. Also suitable for use in erect growing crops, the Convio Flex can be used as a conventional cutter-bar with the bar and knife ‘locked-out’ before switching to ‘flex’ at the touch of a button.

Both units are suitable for canola, particularly if the option of 425mm left and right feeder augers are fitted to the rear wall area of the cutter-bar and the central trough is protected against leakage with rubber in-fill strips.

Fully operational integration with the CEBIS control system sees belt speed being adjusted automatically to match forward speed.

Meanwhile, belt slippage and ‘belt-stopped’ warnings alert the driver to potential blockages so should prove useful in

AFFORDABLE QUALITY TRAILERS • Built strong • Quality running gear • Over rated suspension

dusty conditions or at night.

In operation, four Auto Contour functions offer the best cutting performance and the ability to deal with changing crop conditions.

In cereal mode, the bar and knife are rigid, but if isolated areas of laid crop are encountered the operator can switch to flex-mode with a range of movement of 225mm.

In auto contour flex mode the cutter-bar uses sensor data to continuously determine the best position for optimal crop flow and ground following, as well as the lowest cutting heights.

Looking at the reel in more detail, a newly developed, innovative and adjustable cam track ensures optimal crop flow. The flip-over design

The Convio and Convio Flex draper cutter-bars are said to improve performance.

is said to prevent wrapping of the crop within the reel.

The reel assembly is hydraulically driven and has an automatic torque

control to prevent tines from digging into the ground.

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ALTHOUGH STILL an unusual sight in New Zealand, the Claas Xerion has raised its profile in Quebec, Canada, where the local dealer Bosse and Frere has just delivered seven units to one customer.

GT Custom Works will use the CVTequipped, 530hp machines to tow Nuhn high-capacity slurry

tankers. Each tractor will tow two tankers in a tandem format -- effectively road trains

-- using Nuhn’s QuadSteer articulation and steering system.

The tandem tankers

will have capacity of at least 56,000L. The load of each rig is carried on eight axles -- two under the Xerion tractor and three under each of the tankers.

Each is 28m long.

The front and rear axles of each tanker have electronically controlled steering (hence Quad-Steer) in forward and reverse.

LEADERS ON FARM MACHINERY DESIGN

Get it done.

Mowing • Tedding • Swathing • Harvesting

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PUKEKOHE AGrowQuip NZ Ltd 09 237 0043 MORRINSVILLE Piako Tractors 07 889 7055 HAMILTON AGrowQuip NZ Ltd 07 847 0425 CAMBRIDGE AGrowQuip NZ Ltd 07 827 5184

ROTORUA Piako Tractors Ltd 07 345 8560 STRATFORD FeildTorque Taranaki 06 765 8643 GISBORNE Stevenson and Taylor 06 858 6041 WAIPUKURAU Stevenson and Taylor 06 858 6041

DANNEVIRKE Lancaster Tractors 06 374 7731 FEILDING TRC Tractors 06 323 4117 MASTERTON Wairarapa Machinery Services 06 377 3009 NELSON Drummond and Etheridge 03 543 8041

RURAL NEWS // OCTOBER 2, 2018

MACHINERY & PRODUCTS 43

New age Jeep for lucky 20 MARK DANIEL markd@ruralnews.co.nz

JEEP IS reviving a winning formula -- the Golden Eagle -- and limiting the release to 20 units in New Zealand.

The Jeep legend took flight in the 1970s with a Golden Eagle version of the Jeep CJ7. It combined off-road ability with high levels of equipment, making it a sales hit for the maker.

system inside.

Other eye-catching details include 18-inch bronze-painted aluminium wheels, Body colour fender flares, a

This exclusive new Jeep has the off-road ability of the Wrangler, Golden Eagle decals on the exterior and the maker’s U-Connect telematics

weather slush mats with Jeep’s tyre tread pattern keep things clean underfoot.

Power comes from a 3.6L Pentastar V6 engine delivering 209kW and 347Nm of torque, driving through a five-speed automatic gearbox to the Jeep Command-Trac 4x4 System.

Available in three colours the Jeep Wrangler Unlimited retails at $67,990 plus orc.

3-piece hard top, bronze accented grille throats and headlamp rings, a black painted 7-slot Jeep grille and rock rails.

In the cabin, a 6.5inch Uconnect touchscreen radio combines with a 7-speaker Alpine premium audio system.

The black cloth interior is trimmed with light bronze accent stitching and embroidered Golden Eagle logo on the front seats. Mopar black all-

SHEEP JETTER DRIVING A BETTER FENCE A NEW series of Kinghitter postdrivers from Fairbrother Industries, Auckland, is reckoned ideal for high-frequency users or contractors.

Notably, the series 5 has a simple 180-degree rotation function operable without the operator leaving the tractor seat. An optional cabin remote option will be included as standard equipment on the first batch of machines.

The company has made postdrivers since 1977, when Jim Fairbrother realised the limitations of tractor-mounted mechanical drivers; he designed and made the world’s first hydraulic post driver.

Fairbrother says the new machines have had 36 months of design, testing and modification, are easy to use, stronger than competitors’ gear and should allow an operator more productive days.

The machine layout, with the mast in the vertical position, offers an operational area of at least 4sq.m.

Standard equipment includes hydraulic legs for stability, adjustable wear pads and plastic sliders for durability and longevity, and the machine is also compatible with Kinghitter rock-spike and auger kits.

BLENHEIM Drummond and Etheridge 03 579 1111 KAIKOURA Drummond and Etheridge 03 319 7119 GREYMOUTH Drummond and Etheridge 03 768 5116 CHRISTCHURCH Drummond and Etheridge 03 349 4883 ASHBURTON Drummond and Etheridge 03 307 9911

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RURAL NEWS // OCTOBER 2, 2018

44 MACHINERY & PRODUCTS

Twin-auger feed mixers ideal for tight space or big loads MARK DANIEL markd@ruralnews.co.nz

A NEW range of Kuhn Profile twin-auger mixers are designed for intensive use.

Capacities range

from 18m3, ideal in tight spaces, to 34m3 for larger scale operations.

The Profile range is of compact design for greater volume, with the shape of the hopper allowing up to 4m3 more

capacity than similar machines of the same height now on sale.

They embody Kuhn’s ‘Long Life Solutions’ to minimise wear and tear from abrasion and acidity, with K-Nox

mixing augers as standard, the whole auger being made of K-Nox (3CR12 stainless steel), from the thread to the central shaft, offering superior resistance to friction and

The profile range of mixers of of compact design for greater volume.

For greater ease of use, you can manage weighing operations from the loading station using the KDR 300 display unit.

EasyCut R Series Mower T h e E a s y Cu t R e a r M o u n t e d Mower is renowned for its s t r e n g t h a n d r e l i a b i l i t y.

Fe a t u r e s i n c l u d e t h e d i r e c t drive shaft and SAFECUT protection system for the c u t t e r b a r.

Increase your work rates and productivity with this ver y capable machine.

* Te r m s , c o n d i t i o n s & lending criteria a p p l y.

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DEALERS NATIONWIDE

the fatty acids contained in some fodders.

A new, standard weighing system is installed on all models in the Profile 2 CL range, using four load cells integrated into a cradle, located between the axle and the hopper, with another at the drawbar, to minimise fluctuations and interference.

This is said to achieve greater accuracy irrespective of whether you’re using a single axle, a bogie axle or even a bogie steering axle, stationary or in motion.

The as-standard KDW 341 weighing system manages the feed, in ‘simple’ mode for weighing quantities loaded and distributed, or ‘programmable’ mode for detailed nutri-

tion management. Both options allow precise readings to mix large volumes of feed accurately and effectively.

For greater ease of use, you can manage weighing operations from the loading station using the KDR 300 display unit.

On CL models, feed is distributed on the right and left by a cross conveyor. This outlet can be positioned to the front or rear of the machine.

The integrated chassis is oversized to handle the torsion effects caused by the hopper even on rough terrain.

And the design ensures the whole unit always has sufficient ground clearance. www.kuhn.co.nz

RURAL NEWS // OCTOBER 2, 2018

MACHINERY & PRODUCTS 45

Big rake impresses wary contractor Murray also considers the 15m rake user-friendly, with the ability to easily adjust operating widths via the independent, hydraulic adjustment of each rotor arm, from the cab on the go, to make the rake versatile. It’s not always necessary or desirable to take the maximum raking width.

And if the machine encounters obstacles such as power poles or water troughs, the operator simply withdraws or extends the rotor arm rather than raising and lowering, making operation or straightening rows easy.

As for its construction, the sealed, maintenance free Proline gearbox keeps daily maintenance down to routine greasing.

In operation, the hydraulic adjustment of ground pressure from the cab enables paddocks to be swept clean, even in undulating or rutted conditions.

Other points gathering praise include the adjustable cam track that allows adjustment of the drop point according to conditions, compact dimensions for road travel and manoeuvrability with steered wheels.

MARK DANIEL markd@ruralnews.co.nz

ALTHOUGH HE wasn’t in the market for a new rake, a demo of the Kverneland 15m, four rotor KV 97150 rake persuaded Steve Murray, of B.A. Murray Ltd, Rangiora, him to buy it.

It is a boon to his contracting business, he says.

That wasn’t his first impression; he told his son Sam “that thing is just too big and it will take some horsepower to pull it!”

But no, a demonstration, rowing up 40ha, persuaded him to a change mind.

Says Murray, “halfway around the paddock I was impressed, with the machine picking up the grass well, forming a huge, even swath and adding the bonus of pulling in an extra 3m more grass than our 12m rakes.

“By the time we had done a lap I’d already bought the machine in my head, I was so impressed.”

Murray had already recognised the need to feed his new, high capacity forage harvesters and baler with more grass; a bigger swath was seen as the answer to slowing forward speeds and raising daily output.

Steve Murray says the 15 metre Kverneland four rotor rake has been a boom to his contracting business.

“Paddocks aren’t getting any smoother, so simply relying on speed to increase outputs will result in more breakages during the season,” he said.

The same logic applies to the raking, so the KV97150’s ability to provide high volumes of grass for harvesters or balers, while still travelling

at modest speeds, means less wear and tear, less damaging jolting and a more comfortable operator, despite boneand machine-jarring pivot steer ruts.

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RURAL NEWS // OCTOBER 2, 2018

46 MACHINERY & PRODUCTS

Dieselpowered UTV MARK DANIEL markd@ruralnews.co.nz

WE TOOK a brief look at the Landboss back in October 2017.

However, we recently got the chance to spend a week with the latest version onfarm in Waikato just as spring was springing.

Marketed in New Zealand by Mojo Motorcycles, which also sells the CF Moto brand, the Landboss pricks up the ears when you realise its power plant is a naturally aspirated, 3-cylinder, Perkins 400 series diesel.

It’s sure to be a hit with farmers, who will benefit from only needing

to carry one fuel on-farm.

Another key benefit is fuel thrift.

And while the Landboss only delivers about 20hp on paper, it still seems to have plenty of pulling power, lots of go and hits its modest top speed of 50km/h relatively quickly.

Service intervals are

The Landboss UTV is worth a closer look.

the very agricultural 500 hours, and it carries a two-year factory warranty.

The operator station has a wide bench seat with room and seatbelts for three large adults. For the driver, an adjustable steering column should mean a comfortable fit, while electric power steering takes the strain out of manoeuvring.

To the driver’s left, a conventional handbrake with a warning light sits at the end of the bench.

The gear selector sits to the left of the dashboard. The lever allows the choice of high, low, neutral and reverse – with selection smooth, positive and with little resistance.

The Perkins diesel is mated to a Canadian CV Tech transmission that is quiet in operation and builds up speed in a smooth linear manner.

This is all complemented by the choice of 2WD, 4WD with front and rear locking differentials.

The operator station also has boot guards to keep feet inside the safety zone of the ROPS certified roll frame, a full windscreen with wash/ wipe, a composite roof and a 3000lb electric winch mounted under the front bull bar assembly.

The driver is kept

well-informed by a central digital display for all key parameters, although the choice of grey on grey makes it a little difficult to see in bright sunshine.

Stopping the 700kg machine falls to dual discs up front, with a single disc at the rear.

The suspension takes the form of dual A-arms with coil springs over shocks. Ground clearance of 280mm is complemented by a smooth, comfortable ride – with the adjustable suspension absorbing most of the rough terrain encountered on the Waikato dairy farm. As with any vehicle of this type, fetching and carrying is an important factor. Its 400kg capacity for the bed and 680kg at the drawbar look workmanlike.

The load platform has useful dimensions, with drop-down sides and tailgate adding to the versatility; a decent overhang beyond the rear pivots means heavy loads can be tipped manually with ease.

Add in standard equipment such as mudflaps, a comprehensive lighting package, head restraints and rear-view mirror, then this UTV is worth a closer look.

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■ BREAKING NEWS ■ MACHINERY REVIEWS ■ MARKETS & TRENDS ■ MANAGEMENT STORIES ■ COMPETITIONS ■ AND MUCH MORE...

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RURAL NEWS // OCTOBER 2, 2018

MACHINERY & PRODUCTS 47

Demo farm to show how Europeans do it HOPING TO encourage more discussion with farmers in the US, German arable manufacturer Horsch is now running another agricultural demonstration farm.

The AgVision Farm in Downs, Illinois, follows the company’s existing demo farm, AgroVation, in the Czech Republic.

AgVision will help develop the Horsch brand in North America and focuses on key agricultural topics important in the US market. It will also create a centre of expertise where farmers can talk with Horsch staff to better understand the company’s knowledge base and get experience of machines in use on the farm.

The 66ha farm is in the ‘corn belt’

of the US, in an area well known for growing mainly soybeans and maize.

The company will expand the farm’s rotation to include sugar beet, wheat and rape under the guidance of farm manager Daniel Fulton who is also experienced in field test analysis.

The set-up also includes an administration building with a training room and a machine hall with an adjoining repair shop.

Already converted to controlled traffic farming (CTF), the farm will demonstrate Horsch’s knowledge of this and will look at the importance of soil and climate conditions.

Already in use on the farm is a 32-row Maestro 32.15m single grain seed drill, working alongside a Joker

disc cultivator; these will be joined by more Horsch equipment such as a Leeb LT sprayer.

Although catch crops have not played a major role in the US until recent years, the farm will have a special focus on this. It is hoped it will help impart experiences from the European market and address questions.

The demo farm will also look at techniques such as single, precision sowing of cereal crops. Likewise, test plots will be planted to compare non-GMO seed with GMO-seed varieties already part of everyday life in US agriculture but heavily criticised in Europe. @rural_news facebook.com/ruralnews

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HEAVY DUTY AUTO RESET

Don’t put good fertiliser on compacted soil which can’t absorb it. If your soil can’t support 15cm root growth and good worm population check for compaction.

You could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover?

NOW AVAILABLE, 5 OR 6 LEG MODELS

MOLEPLOUGH

YOUR GREATEST ASSET IS THE SOIL YOU FARM. DON’T DESTROY IT!

• SOIL AERATION SPECIALISTS •

PRE RIPPERS

MAITLAND RD5, GORE. PH/FAX 03-207 1837 OR 027-628 5695 www.james-engineering.co.nz

SLURRY TANKERS

FROM

$14,900+GST MUCK SIDE SLINGER

XCEL 1250 MUCK SPREADER

DIET FEEDERS

V16 SINGLE AUGER/T27 TWIN AUGER 20mm thick augers with 12 knives per auger.

Molasses and mineral intake tubes for dietary requirements with front facing conveyor with side shift. Teaser rollers placed at door to break up clumps. 2 speed main gearboxes.

Full chassis for strength.

NORTH ISLAND www.gaz.co.nz Call Jarred L’Amie | 07 823 3765 | 027 203 5022 CAMBRIDGE | OTOROHANGA | ROTORUA

MADE IN IRELAND SOUTH ISLAND www.cochranes.co.nz Call Alastair Robertson | 03 324 3791 | 027 435 2642 AMBERLEY | LEESTON | ASHBURTON | TIMARU | OAMARU

RURAL NEWS // OCTOBER 2, 2018

48 MACHINERY & PRODUCTS

Michelin adds a star TYRE GIANT Michelin is to spend US$1.45 billion buying Camso, a wellknown maker of rubber tracks for farm machines and snowmobiles.

Interestingly, it calls itself a ‘road-free company’: besides agriculture it also makes solid tyre equipment for earthmovers and forklifts.

The two companies will bring their off-road divisions together to form a new operation in Quebec, Canada.

The new entity, expected to be the world leader in off-road mobility, will “provide customers with a range of

premium radial tyres and tracks”.

The merger is expected to speed new

track and airless tyre technologies such as the already-released Michelin Tweel.

Michelin forsees higher sales and a likely cut in costs of up to $55 million by 2021.

LIM A I DEV T PRE TED S ALU CU TOC ATI RRE K ON NC PR Y ICE S!

SPRING CLEAN UP SALE TORNADO RANGE

ELECTROBLAST RANGE

Robust UDOR ceramic plunger pump with brass head.

10 models, both direct drive and with low rpm pump and gear box.

Genuine Honda with 3 yr warranty.

ALBERTI HOT CLEANERS

SAVE UP TO $500

UDOR ceramic plunger pump.

Heavy-duty 4 pole electric motor.

230 & 400-volt models. Diesel hot water heater.

SAVE UP TO $500

Two 230 volt and four 400 volt models with UDOR ceramic plunger pump & low rpm 4 pole (1440 rpm) motor for extended service life.

HURRICANE PTO WATERBLASTER/ SPRAYER 250 or 600 litre tank, 540 rpm gearbox. New UDOR 3000 psi 35L/min pump.

Blast, spray and drain clean!

AES SPRAYPACK 250 & 600 250 and 600 litre tanks, galvanised frame.

HD quick release, PTO shaft, 53L/min spray pump, 25m hose & hand gun, optional 6 metre boom.

UDOR High quality Italian diaphragm pumps.

From 17L/min to 240L/min.

E PHON T 290 psi to O H FOR S E 580 psi IC R P

Four-way drafter lifts daily output MARK DANIEL markd@ruralnews.co.nz

TE PARI recently released its Racewell HD4, a four-way sheep drafter the company sees progressing the concepts in its HD3 and HD6 units in use in New Zealand and elsewhere.

The sheep handler is said to enhance efficiency by reducing operator and labour requirements, most obviously with its fourth drafting gate.

Te Pari says the extra versatility should require few changes to existing farm infrastructure -- no more than another fence and gate to split one of the yards.

Customer feedback at field days and farm visits by sales and technical reps have brought to light the ideas, says Matt Shieffelbien, who has helped develop the HD4.

“I saw that the drafting process often needs to be done twice to separate the lines my clients needed,” he said.

“With the HD4 it becomes a oneman operation with just one pass to sort weight ranges and to identify stock that may be sick, injured or missing an eartag. Weighing, dagging, vaccinating or drenching and drafting can now be done in the same session with the help of the new, compact multifunction remote.”

A powered backing hook in the leadup race is activated by a ‘magic eye’ – working with the main sheep clamp – to automatically hold sheep waiting in the lead-up race for improved flow.

The control panel of the HD4 has been updated to simplify use and increase reliability.

A drenching mode turns off the entry gate, allowing for increased output, making drenching faster, easier and less back-breaking.

A revised layout sees cables running along the sides of the races and a protective panel prevents damage by inquisitive animals.

Thinking of a mulcher?

Think again!

3 FOR THE PRICE OF 1!

SPRAY BOOMS 4.5 6 & 8m metre spray booms, horizontal fold, stainless steel lines and non-drip low drift nozzles.

SAVE $$$

HOSE REELS 100 or 150m SPRAY HOSE 25, 50, or 100m coils

Contact AES direct or your local AES dealer FREEPHONE 0508 78 78 78 46 Sir William Ave, East Tamaki, Auckland www.aesblasters.co.nz

“The Major Cyclone can knock it down and keep pastures in order. It can chop some pretty massive stuff.”

TOM GRANT, Whakatane

The Major Range of Cyclone Mowers is designed to give a quality finish in grassland, gorse and scrubland.

Delivers a 25% fuel saving compared to traditional mulchers.

Seven models from 2.0m to 5.6m. Heavy duty rear roller.

Designed & produced in Ireland. Patented HD driveline.

Overlap blade system for clean cut.

Now available in New Zealand through:

Kaitaia Tractors (027 4812188), Norwood (027 4820146), Roger Gill Agriculture (027 2378723), Whyteline (021 588874), Giltrap AgriZone (07 823 3721), TransAg (027 498 3903), Stevenson & Taylor Ltd (027 444 2087) Major Equipment Intl Ltd

www.major-equipment.com

RURAL NEWS // OCTOBER 2, 2018

TRAVEL / MACHINERY & PRODUCTS 49

$17,490 EX GST

Experience the Okavango Delta by traditional dugout and view the huge Chobe elephant herds by boat

Wildlife up close and personal.

Africa ‘defies description’ AFRICA IS mystical and wild, a destination that changes you forever, like no other place on earth.

So says seasoned hunting tour guide and publisher of The Fishing & Hunting Paper, Daryl Crimp.

He says for centuries Africa has denied travelers the definitive description.

“Part of this lies in its sheer size, its immense landscapes and big skies. But a bigger part is that Africa means different things to different people: no two sets of eyes see it the same. It is the photographer’s paradise, the nature lover’s Eden and the dreamer’s utopia.”

Crimp has taken tour parties to various exotic locations on hunting or fishing trips.

This time he and his guests will be armed with cameras, not guns. His latest adventure safari takes in Africa’s culture and history, the cuisine, the breath-taking scenery and “a kaleidoscope of wild animals that will literally be right on your doorstep”.

“I have had the pleasure of hosting many

– ll e! a it ltur s r u ove & c ir c o r y fa t sa e his s f i Th i l d l i w

Daryl Crimp’s Footprints on

AFRICA

s& We take only photo ts rin otp fo leave only

groups to ‘the dark continent’ and the feedback has been unanimous: our adventure safari is the trip of a lifetime.”

This 21-day overland safari will take in three very different countries, each with their own special treasures and each facing its own challenges: South Africa, Zimbabwe and Botswana.

From the metropolis of Johannesburg the tour party will then head to the world-famous Kruger National Park for several game drives – elephant, lion, hippo, giraffe, zebra, and many more species. A highlight is the night game drive.

Then across the border into Zimbabwe, one of Africa’s more colourful countries, and a step back in time. The tour includes the Great Zimbabwe Monuments, a stay in the Great Zimbabwe Hotel, the famous city of Bulawayo, and sundowners overlooking the Matobo National Park.

“We also go on mini safari in open game vehicles into Zimbabwe’s largest national park, Hawange, and stay in the beautifully appointed

• Kruger National Park • Hwange • Matobos • Moremi Game Reserve • Victoria Falls • Okavango Delta • Zimbabwe Ruins • Chobe National Park

Hwange Safari Lodge where wild animals come to water right in front of your rooms,” says Crimp.

“And no visit to Zimbabwe would be complete without a walk through the tropical forest to the very edge of ‘the smoke that thunders’ — Victoria Falls.”

The final destination is the jewel in the crown — beautiful and benign Botswana. This country is home of some of nature’s truly great wonders, the Okavango, Chobe National, and the Kasane Forest.

Sparsely populated with two million people, the country has one third of Africa’s elephant population.

This leg of the tour includes camping in safari tents, navigating the Okavango by native canoe, interacting with friendly locals and more game sights on private land.

“I have tailored this safari to the adventurous at heart, with comfort high and difficulty low,” Crimps says. “All you have to worry about is enjoying yourself.”

Daryl Crimp’s

ADVENTURE

AFRICA Safari may 2019 ESCORTED 21 DAY TOUR OF SOUTH AFRICA, BOTSWANA & ZIMBABWE

We cannot wait to share this adventure with you, so call or email us for the full itinerary.

RESERVE YOUR TRIP OF A LIFETIME Crimpy & Annette

email: darylcrimp@gmail.com - Ph 021 472 517 for the full itinerary & dates

MADE IN JAPAN

OVER ONE

TONNE COMBINED CARRYING

CAPACITY

• 800cc Perkins diesel engine • Canadian CVTech transmission • Selectable 2WD/4WD modes • Front and rear diff lock and turf mode • Power steering (EPS) • Scratch resistant polycarbonate windscreen and wiper kit • Bench seat and rearview mirror • Gas assisted tip tray with drop down sides • 450kg cargo box and 700kg tow capacity • Winch & roof • ROPS certified roll frame • 2 Year warranty

FINANCE

W W W. L A N D B O S S . C O . N Z NORTH ISLAND

• Maungaturoto (09) 431 8555 • Papakura 09 297 7145 • Silverdale (09) 426 5612 • Raumanga 09 437 5451 • Tahuna 07 887 5790 • Tauranga (07) 552 0071

SOUTH ISLAND

• Balclutha (03) 418 0555 • Culverden (03) 315 8667 • Gore (03) 208 8114 • Ranfurly (03) 444 9747

RURAL NEWS // OCTOBER 2, 2018

50 RURAL TRADER NEW - BUFFALO BOOTS!!! EARLY BIRD SALE!

New Buffalo Boots have thick buffalo hide uppers which are 175% more crack and water resistant than normal leather. This means they last longer and offer you better value for money.

The nitrile rubber outsole won’t crack, split or break down in soil. And it is traditionally stitched to the leather upper so it won’t fall off. To make extra sure of this - the stitching goes all the way through the tread.

The Lace Up boot offers superb ankle support on hill country, and a calfskin tongue & collar for great internal comfort.

The Slip On boots are ideal for any work application.

Both models have a traditional full length back stay for optimum durability around the heel area.

Due to time constraints we only have a very small quantity arriving in December. Please order early to avoid disappointment.

PHONE 9am-5pm

0800 16 00 24

LACE UP

ONLINE

SINGLE DOG BOX GST $565 incl

$120

$115

valued at $230

STEEL TOE (with Scuff Guard)

valued at $190 STEEL TOE (with Scuff Guard)

PLAIN TOE (without Scuff Guard)

PLAIN TOE (without Scuff Guard)

earthwalk.co.nz

CHEQUES

Accommodates up to 4 dogs 6 individual air vents Removable centre board 2 lockable galvanised gates In-house drainage Tie down lugs on each side Fits all wellside & flatdeck utes (2 models) ❱❱ Raised floor for insulation incl GST

please add $12 freight per order

earthwalk, r d 2, palmerston north

CRAIGCO SENSOR JET

Rubber Safety Matting

DEAL TO FLY AND LICE

❱❱ ❱❱ ❱❱ ❱❱ ❱❱ ❱❱ ❱❱

• ATV Carrier Mats • Exit/Entry Areas • Calf Trailers • Horse Floats & Trucks • Weigh Platforms • Bale Mats • Comfort Mats for Wet & Dry Areas • Utility Deck Matting

• Cost Effective • Complete Package • Unbeatable pricing • Performance Guaranteed

Phone: 0800 80 8570 www.burgessmatting.co.nz

P 06 835 6863 - www.craigcojetters.com

Moa Master provide quality products and services at affordable prices

Phone 0800 625 826 www.mckeeplastics.co.nz

13.5hp Briggs & Stratton Electric Start

QUADBAR

595

$

+GST delivered

Proven beyo nd do ubt!

Electric Start

Towable topping mower

Towable Flail mower

4400

$

11.5hp Briggs & + GST Stratton Electric Start

4200

$

+ GST

50 ton DIESEL $ wood splitter 3990 + GST

To find out more visit www.moamaster.co.nz

“I have no doubt that if I did not have a Quadbar fitted, my accident would have been fatal!” – Rozel Farms

MOA MASTER

“The Quadbar saved our employee from significant injuries.” – Colin van der Geest

For a Quadbar, call me, Stuart Davidson, owner of Quadbar NZ, on 021-182 8115. Email sales@quadbar.co.nz or for more info go to www.quadbar.co.nz

Buffalo Leather - Dark Brown Nitrile Rubber Outsole Traditional Stitched on soles Wide Fit Calfskin Tongue & Collar (Lace Up) Heavy Duty Elastic Sides (Slip On) Outsole won’t Crack or Split 175% more crack resistant Leather Deep Tread

sizes: 7 - 14 (NZ)

TOP DOG BOX

$797

ends 31 october

SLIP ON

Phone 027 367 6247 • Email info@moamaster.co.nz

600 500 400 300 200 100 0

QUADBAR 5 YEAR SURVEY

NUMBER OF QUADBARS 479

ROLLOVERS 61

NUMBER OF DEATHS 0

VETMARKER Docking Chute

0800 DOCKER

(362 537)

www.vetmarker.co.nz

FIRST

We were the to wrap silage!!!

is available through your local distributor or contact Integrated Packaging LTD on 0800 745 297 to find your local rep MANUFACTURED IN NEW ZEALAND BY

FOOTWEAR LTD

NZ MADE BOOTS

Visit www.lastrite.co.nz for more quality products

HUNTER BOOTS Comfortable, durable and stylish.

The heavy duty sole construction makes this a robust boot designed for climbing over rugged ground. This boot has a soft toe and is made from a thick Mad Dog Nubuck Leather, stitched and screwed construction with a rubber, replaceable sole, that is glued and screwed. Soft padding for ankle support and D-Rings for your laces are an added advantage. Great fitting boots full of comfort, ideal for those long hunting and tramping trips.

FARMER BOOTS Lastrite’s Farmer boots are made

for comfort. Constructed from Reverse kip leather they are an ideal farmers, fencers and builders boot. Very sturdy and made to last this boot is robust with a heavy duty construction.

It has a leather insole and midsole that is stitched and screwed construction with a rubber, replaceable sole, that is glued and screwed. Update your old boots now and you will never look back.

10 HALL ROAD, RD5, WHANGAREI Phone 09 438 8907

FLY OR LICE PROBLEMS?

Free Range & Barn Eggs

The magic eye sheepjetter since 1989

SUPPLIERS OF:

Quality construction and options • Get the contractors choice

• Nest boxes - manual or automated • Feed & Drinking • Plastic egg trays

Featuring...

• Incredible chemical economy • Amazing ease 1500+ per hour • Unique self adjusting sides • Environmentally and user friendly • Automatically activated • Proven effective on lice as well as fly • Compatible with all dip chemicals • Accurate, effective application

QUALITY PRODUCTS MADE IN EUROPE OR BY PPP

❖

A trusted name in Poultry Industry for over 50 years ❖

07 573 8512 | dipping@electrodip.co.nz – www.electrodip.com

Lockable Pulley

THE STANLEY LUNCH BOX durable, with huge capacity for a hearty lunch

Used by Farmers, Hunters, the Home Handyman, Lifestyle Block Owners The Stanley and also in Veterinary Practices

The Stanley Food Jar keeps food hot all day and the insulated lid doubles as a handy bowl.

Flask has • Stainless steel been keeping • 4 sealed bearings coffee hot NOCKING THE GST OFF 4-1 ratio R OUTBACK•OIL SKINS around the • Rope included clock since STANLEY PRODUCTS • Available in 2 sizes:1913

1) will lift up to 272kg 2) 2000kg breaking strain

DOLOMITE

NZ’s finest BioGro certified Mg fertiliser For a delivered price call...

0800 436 566

Be Safer With Clic Dual Wheels ZON BIRDSCARER

From

STOP BIRDS NOW!

$685.00 + GST

ay, Masterton • 06 378 9964 ckwhips.co.nz Solway, Masterton • 06-378 9964 www.stockwhips.co.nz • stockwhips@xtra.co.nz

The Spreader Specialists Walco Have the Spreader to suit YOUR Needs Walco will Give You Peace of Mind with: 1, 2, 3, 4, 5,

Best Value for Your Money Most Reliable & Durable Spreaders Even Spread Pattern Huge Range to choose from 2 Year Warranty -

c sti Pla el rom sive Ste f de rro ed Ma -Co anis on alv N h ng G ug To Stro &

on Duals for more traction, stability, flotation, towing power, versatility.

Clic Wheel Systems Ltd, ROTORUA

Ph/Fax 07 347 2292 www.clicdualwheels.co.nz

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

We’ll Look After You

Spinner & Vanes specially designed to give an Even Spread Pattern

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

Ring NOW for Your Nearest Stockist of these Fantastic Machines TM

Ph 0800 853 002

info@walco.co.nz

Helping Farmers Boost Production

Made in New Zealand

www.walco.co.nz

Quality Greenhouses

HARD WEARING

SEAT COVERS FOR UTES,TRACTORS, QUADS AND MORE

• Easy assembly • Strong and durable

• NZ made since 1980 • Grow all year round T/F 03 214 4262 E info@morrifield.com

www.morrifield.com

RUGGEDVALLEY.CO.NZ | 0800 478 443

ORDER S EAT COVERS ONLINE THIS OC TOBER A ND USE COD E RURAL NZ TO RECE IVE A FREE CA P.

• • • • • •

600kg towing capacity (up from 450kg) new engine and transmission updated powersteering gas front shocks all new frame and steering geometry updated rear suspension and braking system

FOR ALL KIWI FARMERS

Enter online or by post. Go to www.ruralnewsgroup.co.nz/win-a-new-ride

Enter online or by post. Go to www.ruralnews.co.nz/win-a-new-ride

RURAL NEWS TO ALL FARMERS, FOR ALL FARMERS

✂

Or fill in this form and post it to: Rural News, Win a Suzuki Kingquad competition, PO Box 331-100, Auckland 0740

Q: What publication did you see this promotion in?

Answer: ..........................................................................................................................

Name: ..............................................................................................................................

Address: ........................................................................................................................... ......................................................................................................................................... ...................................................................... Phone: ......................................................

Email: ...............................................................................................................................

Terms and Conditions: Information on how to enter the competition forms part of these terms and conditions. Entry in to the Win a Suzuki Kingquad competition is deemed acceptance of these terms and conditions. Entry is open to all New Zealand residents except for employees of Rural News Group and their immediate family. Each entrant may enter more than once. To be valid, each entry must contain the correct answers as determined by the Rural News Group. The competition opens on Monday August 6, 2018 and closes Friday November 2, 2018 at 11pm. The prize winner will be drawn on Monday November 5, 2018 and will be contacted by phone and email by Wednesday November 7, 2018. The winner will be announced via email by Friday November 9, 2018.The promoter’s decision is final and no correspondence will be entered in to. By accepting the prize, the prize winner consents to the promoter using his/her details, photographs and recording of the prize acceptance for promotional and media publicity purposes. There is one prize of a Suzuki Kingquad 500 XE ATV. The winner may be required to pick up their prize from their nearest Suzuki dealer. The prize is valued at $16,995. The prize is not transferable or redeemable for cash. All insurance and any on-road costs are at the winner’s expense. All entries become the property of the promoter. The promoter is Rural News Group, First Floor, Bayleys Building, 29 Northcroft St, Takapuna, Auckland 0622

+4.4

kg

INVEST $1 GET $4.07 BACK3