apple angst Euro crisis crippling Nelson growers. page 11
what a worker If you loved those old 4WDs you’ll like this ute. page 32
Rural NEWS
First wheat Renowned plant breeder’s first NZ-bred lines come to fruition.
page 12
to all farmers, for all farmers
february 7, 2012: Issue 508
www.ruralnews.co.nz
Stop TAF now! a n d r ew swa l low
RALLY BEHIND your Shareholders Council and empower it to veto TAF. That’s the plea from South Canterbury dairy farmer and Fonterra shareholder Leonie Guiney in the wake of
last week’s 50 meetings on the proposed Trading Among Farmers scheme. But her reasoning isn’t so much what was said at the meetings, as the content of MAF’s consultation paper on Fonterra’s milk price setting, capital restructure, and share valuation which was
Farmers rally to repair wrecked fences NELSON FARMERS Ian and Barbara Stuart couldn’t ask for better friends than Daniel Rater and Andrew Noakes (right). Last week they were among six farmers from the district who ‘downed tools’ on their own properties to spend a day repairing fences ripped by December’s floods and slips on the Stuart’s Cable Bay farm. But with several kilometres destroyed over the steep country, the task is far from done. Gavin O’Donnell, provincial president of Federated Farmers Nelson, mustered last week’s posse and hopes more will come forward. “I’d like to emphasise how great it has been having these guys here, and like to think when we organise another day there may be others with a little more spare time.” The Stuarts say they appreciate what’s been done, as it’s “really hard work,” on such country.
released the week prior. “It’s all so completely tied together. Government sees TAF as an opportunity to have an influence on our milk price.” She urges all shareholders to read that paper, and in particular clause 41a. It states ‘the interests of external
investors to maximise Fonterra’s profit would provide some counterbalance to the interests of Fonterra’s farmer-shareholders, whose interests are primarily to maximise the milk price Fonterra pays them as suppliers.’ “This isn’t about the 5% of milk on the domestic market. This is about all our milk, including the 95% we export,” she warns. At the TAF meeting she attended Fonterra said Government or Commerce Commission annual audits of milk price would be ‘frustrating, but we can live with it’. “If our board doesn’t consider Government regulation of our milk price to be a major issue then we’ve got a major governance failing.” Redemption risk, an argument from TAF, can sensibly dealt with by retentions, Guiney adds. While Guiney is calling for shareholders to throw out TAF completely, Fonterra chairman Sir Henry van der Heyden told Rural News he’s confident farmers will accept the co-op’s preferred option, based on the feedback he received at seven farmer meetings. “At the end of the meetings I have attended, a vast majority of farmers are telling us to just get on with it.” Van der Heyden says farmers have been asked to give feedback online this month. “We have left it up to our farmers to decide which option they prefer.” He says farmers are angry with the Government’s proposed changes to raw milk regulations and half the time at the meetings was spent on that issue.
Fonterra tips op2 OF THE three TAF options now on the table, Fonterra is recommending option two, a farmer-controlled trust to hold traded shares. This option will give farmers “the comfort of direct control and ownership of the custodian”, according to Fonterra’s paperwork. The Farmer Trust Custodian would be owned by a trust controlled directly by farmer shareholders. The other options are a custodian 100% owned by Fonterra, or individual farmers retaining legal title to shares they place with the fund. Fonterra farmers were told they will collectively retain legal title to shares placed with the fund without additional layers of administration that would potentially make TAF too complicated to work effectively. In contrast, keeping legal title with farmers carries significant downside risk because of its complexities and potential for value destruction, it says. “The more complicated TAF becomes, the greater the need for detailed explanations as to why TAF needs to be so different to other investment opportunities,” farmers were told. The co-op says the custodian approach is a straight forward solution that would achieve TAF objectives. It admits it’s not been explained as well as it should have in the past but remains confident TAF can be launched in November. A final TAF package is expected before the board in the first half of this year for approval. The Shareholders Council will get the proposal by August.
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Rural News // february 7, 2012
news 3 issue 508
www.ruralnews.co.nz
News ������������������������������ 1-13 World ������������������������� 14-15 markets ��������������������� 16-17 Contacts ������������������������� 17 agribusiness ����������������� 18 Hound, Edna ������������������� 20 Opinion ����������������������� 20-22 Management ����������� 23-25 Animal Health �������� 26-29 Machinery and Products ������������������ 30-35 Rural Trader ���������������� 35
Landcorp confirms Crafar contract pet er burke
LANDCORP HAS signed a deal to effectively become a 50/50 sharemilker for Shanghai Pengxin who are buying the 16 Crafar farms. The chief executive of the State Owned Enterprise, Chris Kelly, told Rural News the deal could see Landcorp make about $20 million in gross earnings in a good year. After paying its share of costs, the profit will be “in the order of a few million a year” which he believes is still a good deal. While owning the farms might have
Phone: 09-307 0399 Fax: 09-307 0122 Postal Address PO Box 3855, Shortland Street, Auckland 1140 Published by: Rural News Group Printed by: PMP Print Contacts Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: fionas@ruralnews.co.nz ABC audited circulation 80,327 as at 30.6.2011
being negotiated last week. “Pengxin gets roughly 50% of the revenue. It’s not exactly a 50/50 deal but it’s close to it. Landcorp gets the other half of the milk cheque and both parties split the costs according to a schedule we have, which again is pretty close to a standard sharemilking arrangement.” Landcorp will only be responsible for costs relating to repairs and maintenance and other operational costs such as feed. Any development costs will be met by Pengxin and this includes an initial injection of $15 million, but Landcorp will manage this
development spend for Pengxin. Kelly says about 70 staff will be employed across the 16 farms, plus some ‘off-farm’ management. “Currently there are sharemilking contracts in place for all the farms. We will honour these annual contracts and when they fall due those staff will be offered employment by Landcorp. If they don’t want to join us that’s fine; we will employ someone else.” As Rural News went to press no date had been set for Pengxin and Landcorp to take over the farms but Kelly expects it will be in about two months.
FTA claim doesn’t wash with Parker PAM TIPA & A NDREW SWA LLOW
Head Office Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622
been the ideal situation, Kelly says this arrangement is the next best thing. Landcorp already manages a large number of farms for private compaChris Kelly nies and the Crown, including nine dairy farms near Taupo and the country’s biggest farm, Molesworth Station in southern Marlborough. Kelly says the deal with Pengxin is a modified 50/50 sharemilking agreement and last minute details were still
CLAUSES OF the Free Trade Agreement (FTA) cannot be used as a justification for the Crafar farm sales to Chinese interests, Labour’s finance spokesman David Parker says. Parker was Minister of Land Information when the agreement was signed in 2008 and says he checked that New Zealand’s ability to control land sales was not overruled by the terms of the FTA. “The relevant clause 138 of the trade David Parker agreement they interpret as saying you have to let Chinese investors invest on the same basis as New Zealand investors,” Parker told Rural News. “That is not what the clause means… it means if a Chinese investment is made in New Zealand it must be dealt with under the same rules as [those applying to a] New Zealand investor. “So you couldn’t apply a different RMA standard to an overseas person on the basis they were from overseas.
It doesn’t say you have to allow that investment in the first place.” Parker says Prime Minister John Key and Land Information Minister Maurice Williamson have been “loose in language” over the Free Trade Agreement, following comments that China’s Most Favoured Nation status under the FTA
past 18 months that they would have taken some kind of action if the application had been declined,” she told Rural News. However, Parker is adamant the Most Favoured Nation status under the FTA with China is being misinterpreted and does not prevent New Zea-
“You couldn’t apply a different RMA standard to an overseas person on the basis they were from overseas. It doesn’t say you have to allow that investment in the first place.” – David Parker meant they couldn’t intervene in the deal even if they wanted to. Professor Jane Kelsey at Auckland University also picked up on the PM’s comments about Most Favoured Nation status, as it was not in the Overseas Investment Office recommendation to the ministers. She believes further legal advice was taken, that advice being that New Zealand would face an international lawsuit if it prevented the deal – a point she agrees with. “I’m pretty sure from all the flags the Chinese have been running up over the
land’s control of land sales. “What it means is if you were to do a trade agreement with the United States that had free investment protocols so they were free to invest in our rural land, then there would be a case for the Chinese to have their agreement amended to have the same thing apply to them. But that’s not what is happening here.” Parker says the Global Financial Crisis has lead to trade imbalances in the world with countries like ours running current account deficits and countries with state wealth like China having huge surpluses. That puts them in the
position to always outbid New Zealanders. Williamson, in background information released with the Crafar decision, says the FTA did not influence the decision. “Every application is decided on its individual merits and the outcome would be the same even if New Zealand did not have a Free Trade Agreement with China.” Kelsey says if the Government had advice other than the OIO’s recommendation, it should be released. “Unless there’s further documentation, we don’t really know what’s going Jane Kelsey on in Government.” That could also shed light on why what appeared a relatively straightforward application took nine months for the OIO and ministers to process, she says. “I think it was about avoiding the electoral fallout. I don’t see any other reason why it should have taken so long.”
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Rural News // february 7, 2012
4 news
DIRA plan will stifle competition SUDES H K I SSUN
NEW ZEALAND’S second-largest dairy processor says the Government’s proposed regulation changes will stifle opening of new processing plants. Open Country Dairy (OCD) has consent to build a dairy plant at Moerewa, Northland. But
it says the Government’s proposal to limit the 50 million L allowance of Fonterra raw milk to three years makes the project untenable. “If we don’t get access to DIRA milk, that site will never be built,” OCD chairman Laurie Margrain told Rural News. “This means there will be no
competition for Northland farmers.” OCD already operates a cheese plant in Waharoa, Waikato, and milk powder plants in Awarua, Southland, and Wanganui. The company has 500 milk suppliers. Margrain says OCD will survive without Fonterra milk because it has been
operating eight years and is fully established. At the same time accessing Fonterra’s raw milk allows it to start a new plant and build a new supply base. The Government has released for public consultation proposals including a three-season limit for independent processors who source raw milk
Still open for submissions says Minister WHILE OCD says three years access to Fonterra milk isn’t long enough, Fonterra protested it’s too long, and that it’s forced to release too much milk. Primary Industries Minister David Carter told Rural News the three-year period could be reconsidered in the review process. “There is a possibility we look at transitioning it over three years or we shorten that period of time…. “That is the very reason we have put out a consultation process and are asking for genuine, unemotional feedback so we can establish whether it be three years or whether it be longer or shorter.”
Fonterra also slammed the suggestion it will have to supply 200 million L more milk to independent processors over the next three years, saying it would cost the co-op $70m/year, a figure Federated Farmers interpreted as a cost to each farmer of $6000-7000/year. Dairy chairman Willy Leferink says while the threeyear proposal is a step in the right direction, it needs to go further. “If the Government wants new export entrants, then it needs to turn off the tap to those [already] receiving milk at the regulated price. “ Submissions close February 24.
Laurie Margrain
directly from farmers, and increasing the amount of milk available to independent suppliers to about 5% of Fonterra’s milk supply. These processors are currently collectively limited to 600 million L or about 4% of the coop’s total milk. Margrain says newer companies wouldn’t cope. They couldn’t become an effective competitor in the marketplace in the three year period, he believes. “The purpose of
NZX sights still on Fonterra?
DIRA is to help independent processors commence operations and become established. Remember the new companies are pitted against a co-operative that controls 92% of the market. And Fonterra is aggressively working to ensure it retains that dominance. We feel the three-year period is too short.” Fonterra says the proposed changes will have New Zealanders subsidising increasingly foreign-owned dairy processors who don’t sell milk in New Zealand and who send their products and profits offshore. OCD is partly owned by a Singaporean company. Other processers with some overseas ownership include Synlait, Miraka and New Zealand Dairies Ltd.
LAST WEEK’S announcement that Singapore-based New Zealander Tim Bennett is the new chief executive at NZX leaves little doubt the market house has designs on deriving more business from dairy. “Tim maintains a high degree of connectivity to Asian and other exchange operators, and is very familiar with Fonterra’s GDT offering, thereby bringing a strong international and domestic focus, particularly with regard to New Zealand’s leadership in agricultural markets,” it read. Bennett reiterated that, saying he’s keen to accelerate the development of NZX’s markets. “New Zealand plays a key role in agricultural commodities globally and I’m looking to combine my experience with the foundation NZX has established in dairy futures to grow this area of the business.” He takes over from departing chief executive Mark Weldon on May 7.
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Rural News // february 7, 2012
news 5
NZ$ rains on beef’s parade pam tipa
THE NEW Zealand dollar’s strength is throwing a dampener on heady days for beef. US export beef prices, and cattle futures, are at record highs as the drought in America has brought shortages around the world. And while the drought is over, there’s still a lack of stock because of that, says Beef + Lamb New Zealand chairman Mike Petersen. “We are strongly influenced by US dollar in farm gate returns and that is going to weigh a bit heavily on the farm gate price for farmers over next few months. I’m confident about the medium
to long-term outlook for beef but the value of the dollar is impacting at the moment.”
Mike Petersen
Prices have been coming back quickly. In the North Island, schedule prices have dropped to $4.30/kg from $4.90/ kg only about three weeks ago, says Petersen. But Meat Industry
Association chairman Tim Ritchie says “there doesn’t seem to be too many dark clouds on the horizon.” “Like sheep meat, supply and demand is in our favour. The New Zealand dollar is always the nasty one – we have seen that in sheep meat. In the last month or so it’s moved about 8-9% and that impacts the farm gate prices.” Beef+Lamb executive director Rob Davison says the US market looks positive, with low cattle numbers and high prices. But North America represents about half our beef exports and 35% of export receipts. The position is not so clear with other markets. The beef market by
ANZCO flags procurement issue BARRING ANY major shock globally, beef prices are in a steady to slightlyupward trend, says Peter Conley, chief executive of the beef division, ANZCO Foods. “Support for beef globally remains resilient. Some countries are liquidating herds; while it’s putting meat into the market place it’s creating opportunity. “New Zealand’s position as a leanbeef supplier to overseas markets coming in at the bottom end of the beef food chain is good for us. Even if people trade down within the beef sector they will still eat a lot of ground beef products.” However, volatility in Europe could impact our business there at the highvalue end. A 10% movement in the NZ$ since December – up from US76c to US83c at the time of going to print – is hitting processing margins. Market prices have not gone up 10% and procurement costs on average have stayed about the same. “The signal I would give to any farmer is that pricing here in New Zealand at the farm gate is reflective more of the
current situation where you’ve got processing overcapacity and lack of kill. Farm gate pricing at the moment isn’t truly reflective of market returns. “Pricing at farm gate needs to reflect the movement in the dollar because that hasn’t been reflected over time. “We can live in the 70s (kiwi against greenback) but as we push up into the 80s it starts to become extremely difficult.” Conley says processors are chasing what is out there now but as more cattle comes onto the market, procurement prices may ease. The overcapacity issue is a global one, and there will be consolidation, he believes. “There’s a report out in the US this week that cattle processors are losing US$125 a body just to run an animal through the plant. “They are looking for throughput and having to pay the dollar. “ This reflects the way those international kills have eased up which creates the opportunity in the marketplace with less supply and more demand.”
Cull cuts geese by a third FEDERATED FARMERS High Country estimates Canada geese numbers have been cut by about a third in the South Island control group’s first moult cull of the pest since declassification. “We estimate about 18,000 geese have been [killed] but private control operations and individuals unconnected to our group would have taken more,” says section chairman Graham Reed. “We also estimate the South Island population of Canada geese has been reduced to about 40,000 birds. That’s still double what Fish & Game agreed to
in the 1995 South Island Canada Goose Management Plan.” High country farmers, Christchurch International Airport and others did the cull, with help from DOC. Reed says Canada geese are an aggressive environmental pest, competing with native waterfowl for food and nesting sites, and a danger to aircraft. Government offered the control group up to $100,000 for a one-off kill to replace F&G’s control obligation. The cull was carried out in the same way as F&G’s, meeting MAF guidelines.
volume is North America 49% (within this the US is 42%), North Asia 26%, South Asia 12%, EU 4% and ‘other’ 9%. Beef+Lamb’s Washington representative Andrew Burtt says in his weekly
report the US Department of Agriculture had released its estimates of cattle on feed (and sheep on hand) as at January 1, 2012. Both were down 2% nationally to the lowest level in 60 years for cattle.
There were marked differences by region, particularly because of the drought in the southwest. The number of cattle in Texas was down 11% on the same time in 2011.
“This trend is expected to result in cattle and beef prices continuing upwards,” the report says. But he says the US packing industry is suffering its most negative margins in many years as it pays higher prices for live cattle while continuing to struggle to extract higher prices at the wholesale level. Reduced beef supplies – because exports have grown sharply in response to overseas demand – and the weakness of the USD, seem to have had little impact. Burtt says National Beef Packing, the fourthlargest beef processor, reported a 73% drop in earnings in the last quarter of calendar 2011 due to beef sales prices being 16% higher while live cattle prices increased 21%. • Halal opportunities: p15
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Rural News // february 7, 2012
news 7
Dam plan prompts cost concerns BA RBA RA G I LL H A M
THE LEE Valley Dam, Nelson, will become a compulsory scheme for all landowners living within its zone of effect, under a draft proposal to be released this month. The proposal, part of Tasman District Council’s 10-year annual plan, is that rateable land owners would contribute to the $42 million project, even if they don’t have a right to irrigate or have only a domestic bore. Revised costings presented to irrigators at water zone meetings before Christmas put the indicative capital charge at between $420 and $520/ha/year plus $50-70/ ha/year operating cost. People with land that could be irrigated as a result of the scheme will be obliged to pay, whether they opt to use the water or not. They’ll also pay in their rates an estimated $100/year extra, as will those living in Nelson city, to help finance the scheme. That $100/year is separate from any other rate increases. Tasman District Mayor Richard Kempthorne acknowledges the cost concerns. “But these costs were foreseen.” If buy-in to the dam were optional it would be more expensive for those using the water, and less certain to go ahead, he adds. The Waimea Plains are the heart of the region’s horticultural industry and like other areas have had ongoing problems with water supply for irrigation, urban and industrial use. Resources are over allocated by as much as 22%. The dam is seen as vital to alleviate this and ensure an ongoing reliable supply. The aim is for construction to start mid 2013.
All that will be irrigated... PRIMARY INDUSTRIES Minister David Carter checked out the site of the proposed Ruataniwha Plains Water Storage Project dam last week, with Hawkes Bay Regional Council’s Andrew Newman. The $170 million project landed the first grant from MAF’s Irrigation Acceleration Fund,
$1.67m to be matched by HBRC and used for a feasibility study. The dam on the Makaroro should provide irrigation to 22,000ha in Central Hawkes Bay and improve water quality and summer flows in the Tukituki River and its tributaries. Carter says climate change will make it more difficult to farm on the
East Coast. “Where we have opportunities to develop water storage, for the sake of future generations, we have an absolute duty to do so.” Farmer Craig Preston, whose land will be affected by the dam, echoed that. “Imagine if our forefathers hadn’t had the courage to build dams on the Waikato river.”
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Rural News // february 7, 2012
news 9
Working time changes prove handy P E TER BURKE
THE SEASON has gone haywire as far as rural contractors are concerned. Roger Parton, Rural Contractors, says the inconsistent weather all around the country is making sowing and harvesting difficult and work is piling up. He knows of one contractor with 68 jobs waiting to be done but can’t do them because of the weather. “This situation is causing a huge amount of frustration to farmers and contractors alike. Contractors simply can’t be in two places at once and everyone wants everything done all at once.” Parton says about 20 contractors have applied for exemptions or variations to the work time and rule book laws which would allow them to legally work longer hours. “This situation highlights how dependent we are on the weather. The reality is that when the opportunity presents itself
and the weather is right you just have to go and get the job done otherwise you’re going to lose the crop altogether. It’s a huge problem.” Some parts of the country have had little rain, others too much and there’s been snow and high winds in other places, he says. Some crops have gone in late and this may affect them in the long term, but again this depends on the weather. Meanwhile, progress is being made with the Ministry of Transport to change a suite of rules and regulations relating to the agriculture sector, Parton says. “The Agricultural Transport Forum, which includes Feds, is working with MOT and we hope to have a solution by early March. At that stage MOT will put these changes out for consultation which will involve holding three or four meetings in April.” Once this is done and some consensus is reached, MOT will set
in train the necessary changes. These may include legislation, but more likely just rule changes or Orders in Council. If all goes well, this could be done by the end
of the year, the changes taking effect in April 2013.
A growthy season in most regions has seen contractors flat out.
Uni’s to offer farming 101 MANAGERS WORKING in agribusiness who don’t have a farming background are the target of a new joint initiative by Massey and Lincoln Universities. “We’ve heard from human resources managers that there’s a real need to accelerate some of their employees’ ability to understand who they are working for, the objectives of the company and to get a wider understanding of agriculture,” says Mark Jeffries of Massey University. The result is a series of courses aimed to teach the basics of farming and even some farmer lingo, with the first course focusing on ‘conversational agriculture’. Jeffries says a lot of highly quali- Mark Jeffries fied, formerly non-agricultural professionals are being recruited by the likes of Fonterra, Zespri and others. “The aim is for these people to increase their knowledge and for them to become more conversant with the farming seasons, the terminology and the practical aspects of farming.” Other courses will target those who may have been with agricultural firms for some time but are keen to brush up their skills. “We believe there is a real market for this type of training.” Courses will involve about 50 hours of learning: some online, some residential, some on farm. A farm risk management course is also planned.
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There are three ways to register: 1. Online at www.nait.co.nz or 2. Call NAIT on 0800 624 843 or 3. Use a NAIT-accredited information provider to complete your registration on your behalf. Ask your local livestock company, meat processor or rural services provider if they can help. Make sure you have your AHB herd number handy when you register.
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Rural News // february 7, 2012
news 11
Euro crisis adds to pipfruit pain BUSINESS CAN’T get much tougher for Nelson apple growers, and if it does, many of the older ones will quit rather than burn their equity. Growers and Pipfruit New Zealand told Rural News the hard times in Europe, and the euro at a record low against the kiwi, mean Nelson apples will make their growers little money – if any. And they cannot simply switch produce into Asian markets; these demand different varieties, and changing takes about three years. Pipfruit New Zealand chairman Ian Palmer says it’s “dire”. Three years of losses are now compounded by recent bad weather and a difficult growing season; late and prolonged flowering will affect fruit volumes, size and quality. Many growers now face the dilemma of losing more money or quitting. “What we are experiencing now is unprecedented. Normally we will have some difficult seasons then a good one in the middle to balance things out, but unfortunately this time we haven’t had that good one. At the current exchange rate we are definitely looking at a difficult year. “If returns don’t improve it is inevitable some growers with high debt levels will go under. With the kiwi dollar at 62c against the euro – compared with 55c last year – there is no way growers
can make any money; they are losing $6-7 per carton just in foreign exchange.” Palmer is urging growers to talk to their exporters about the risk of exporting to Europe versus sending at least part of their crops for processing, to take advantage of a higher fixed-contract price offered by Enzafoods this year. “I think they have to analyse their crop and where it’s going and see if there is a return in doing so.” Alan Rowling, Mariri, a grower for 40 years, faces the “toughest economic conditions... in all his years in the business”. “The industry has always had its ups and downs [in] prices and you need the odd good year to pull you through but that hasn’t happened for a few years. “We’re trying to get a lot more into the Asian market but it takes time; there is a lot of expense changing varieties and it doesn’t happen overnight, it takes two or three years. “Growers are in a bind because the equity they have built up has been eroded over the past few years and they have little capital to reinvest in planting new varieties better suited to Asia. “And many growers are getting older – there aren’t so many young guys in it now. A young guy will fight and fight to survive but an older person will say, ‘well I’m just burning up my equity and I may as well get out now’.” Palmer agrees, saying
Rural Support Trust at ready for growers The top of the south branch of the Rural Support Trust has been called in to help desperate Nelson pipfruit growers, offering counselling and helping organise financial advice and welfare assistance. It is already working with some smaller orchardists and expects numbers will increase as the effects of the dire season kick-in, co-ordinator Ian Blair told Rural News. “The trust is here to help people under stress; we are not here to necessarily save them as we have no money for refinancing but what we can do is give them support; help them talk to their banks or financial advisor, and ensure they access help from Work and Income and the district health board if they are in a really anxious or depressed situation.”
most growers have little money to redevelop and must now maximise what they grow, which in Nelson region are European varieties. “It’s a case of getting through this season; farm-
ers are resilient people, our horticulturalists in particular.”
Motueka grower Alan Rowling says times are as tough as he’s known in 40 years.
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Rural News // february 7, 2012
12 news Biodiesel subsidy uncertain, contracts promised CONTRACTS TO sow oilseed rape for biofuel will be available later this month despite the three-year subsidy under-pinning the crop coming to an end in June, says Biodiesel New Zealand. “We’d like to see a decision as soon as but unfortunately the minister [Phil Hegley] has only just got his feet under the table,” Andrew Simcock, general manager of the Solid Energy subsidiary, told Rural News. This summer 60 growers with “several thousand hectares from Manawatu to Southland” are harvesting the yellow-flowered,
black-seeded crop. “The yields have been excellent, partly because of the season, partly because of the agronomic support... last year a shade under 3t/ha was the average. This year it’s about 4t/ha with some growers significantly exceeding that,” says Simcock. When spring-sown yields start to come in they will drop the average, he acknowledges. “But all the same the spring crops are looking sensational.” Autumn-sown crops, which make up more than two-thirds of this harvest, were contracted at $770/t, a price set last year based on
the price of competing crops such as cereals, the price of diesel and feed prices. “We’ve sold all our meal for this year and we’ve had good acceptance by the farmers who have used it as feed.” Marketed through Viterra, the cold press process BNZ uses means its meal has slightly higher oil and hence energy content than imported meals, which have typically had the last of the oil extracted using the solvent hexane. Until June a subsidy of 42.5c/litre of pure biofuel is available.
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CROP VARIETY testing systems the world over are inherently misleading and New Zealand’s are no exception, says a leading wheat breeder. John Blackman, the man behind many top performing cultivars over the years, such as Equinox, Raffles and Robigus, believes trials should include plots grown to the breeder’s prescription. The problem with the standard treated versus untreated approach is that all varieties on a site get the same management, with nothing tuned to the cultivar. “We need to rethink the way we trial varieties,” he told Rural News. Besides the issue of one-size-fits-all agronomy (same sowing date, seed rate, fertiliser, fungicides and pgrs) on trial plots, growing early and late varieties, and short and tall varieties side by side – or however the randomised plot design dictates – also causes problems. Tall types are favoured because they get more light, and late types because they don’t suffer the same amount of bird damage, he explains. “Birds only need to take two grains per ear
and that’s a 4% yield difference. But when you look at the plots, most people wouldn’t even notice two grains missing.” Rain late in the growing season can also skew results, again favouring later maturing types, as it did in the UK’s 2011 harvest. Surrounding crops seem to have an influence, boosting the result of the cultivar that’s the same as the crop. “If you want a variety to yield the most in a trial, do the trial in a field of it.” Site selection is also key, and he’s critical of the spread in New Zealand where he says there are too few with high yield potential. “If it isn’t high yielding, it’s not relevant. The yield potential of wheat here is 18-20t/ha in the right season, so you need to work with farmers who are regularly achieving 15t/ha. It is crucial to take account of site and seasonal characteristics in interpreting variety performance,” he stresses. And where wheat trials are irrigated, managers need to resist the temptation to keep topping up the moisture, as do growers with irrigation. “There’s a tendency to keep the water topped
No record breakers likely this season
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CONTRARY TO to comments from some in the industry, this season’s wheat crops do not look world record breakers, says Blackman. “They’ve died from the top, and had too much leaf. The ears are big but that’s a lot of show. They’re quite lax and open and the grain isn’t particularly big.” Two years ago when there were some “phenomenal yields” wheats were still green in late January, in contrast to this year, he notes. “They were stressed in 2010, but they stayed green.” No moisture stress during stem extension – leading to lush, leafy growth, and in turn disease – has been the problem this year. “Septoria came in at an early stage and because people aren’t used to it here they went in with their usual low-dose fungicides, and the sprays didn’t penetrate the lush canopy. “And across chunks of Canterbury there’s ear fusarium too. Even where appropriate controls were applied it’s there.” That suggests earwash dose rates weren’t high enough, and there’s a possibility of infection occurring post flowering where crops stayed wet for a few days. Leaf rust, while generally well controlled by fungicide, has been at unprecedented levels in untreated plots, with even stem rust, a rare visitor to New Zealand, seen in some, he adds.
Rural News // february 7, 2012
news 13
trials flawed here and abroad right up because that’s what the irrigation people tell you to do, and you do need to with potatoes and grass. But winter wheat? “We don’t really know, because no-one has done the work with these European winter varieties, but I don’t believe you do... winter wheat needs
to be stressed.” When it comes to interpreting trial results, too much emphasis goes on yield, without taking account of the factors behind that. “As breeders we have to try to make sense of it all. If we just went on yield this year we’d be likely to
pick a tall, late variety, just like they have in the UK... You need to be [in the trials] earlier to tell anything.” Blackman accepts there have to be some compromises to keep trial design and cost practical, but believes current systems are
over-simplified, and the industry could do better. However, after decades in the business, he’s philosophical about the likelihood of change. “You know my philosophy: breed good varieties which occasionally, by accident, get recommended.”
About Blackman AFTER A long career with UK-based breeder CPB Twyford and the UK’s Plant Breeding Institute before that, Blackman eight years ago set up his own plant breeding and agronomy business, splitting his time between New Zealand and the UK. He made his first wheat crosses on his own account here in 2004 with a view to producing lines suitable for the New Zealand market and, after the usual six-seven years it takes to produce and trial a pure breeding cultivar by the pedigree system, last year saw the first commercial crops of two sown. “There’s about 600ha of each.” This year he’s releasing four more, including UK Group 3-type varieties Delphi and Monterey, again through his New Zealand agent, Canterbury Seeds.
Blackman is guarded about their characteristics and how to grow them – “that’s our USP” – but says they’ve all been trialled here for three or four years and they’re “pretty confident” they’ll perform, provided they’re positioned right. “They’re all different. The problem New Zealand has is that from a breeder’s point of view it’s a niche market. There’s only about 300,000t of wheat grown. That’s not even as big as the UK’s seed production, yet you need just as many varieties because you’ve got a huge variation in sites and rotations.” With the exception of his own, none of the mainstay wheats were bred with the New Zealand market in mind, he says. “Wakanui was bred in Denmark.”
Wheat breeder John Blackman.
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27/01/12 9:47 AM
Rural News // february 7, 2012
14 world US beef needs traceability AL A N HA RMA N
Loss of trade to just one country could outweigh beef traceability costs, warns a US economist.
US CATTLE producers are risking a lucrative export industry by dragging their heels on cattle identification (ID) and traceability systems compared with other beef exporting countries and beef importers. Kansas State University economist Glynn Tonsor
says the implications of his study are particularly troubling. US cattle prices are at record highs because of soaring beef exports, but Tonsor says the comparative disadvantage over cattle ID puts these and future export gains at risk. He says while US consumers have largely trusted US beef produc-
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ers and have not pushed for cattle ID, that could change quickly. The beef industry should consider this before a lack of ID and traceability costs business at home and abroad, Tonsor says. “As major meat importing and exporting countries adopt mandatory animal and meat tracking systems, the US risks becoming less competitive and risks losing market access.” To offset costs of expanding cattle and swine traceability programmes (assuming a participation rate of 20% of production) an increase in beef exports of 1% (8.85 million kg) and pork exports of 0.5% (9.84 million kg would be required. The US exported 63.5 million kg and 117 million kg of beef and pork to South Korea, respectively, in 2009. “Thus, the costs of expanding traceability could be easily offset by gaining access, or not losing access, to a single country,” Tonsor says. “The costs of implementing a 100% participation traceability system in the beef and pork industries could be offset by increasing beef exports by 29.5% (259 million kg) and pork exports by 3.4% (63 million kg).” In other words, to make full traceability investment economically viable, the US would need to gain (or avoid the loss
of) market access to one country such as Mexico for beef or South Korea for pork. “Given the increasing role of international trade in livestock and meat industries, these findings warrant serious consideration by US industry leaders and policymakers.” He points to 2003, when the US exported US$3.14 billion of beef and veal products, but this crashed to US$550 million in 2004 following the discovery of a single US cow infected with bovine spongiform encephalopathy (BSE). The BSE discovery closed most export markets to US beef for at least part of 2004, but by 2010 total US exports of beef and variety meats climbed back to 83% of their preBSE level. “Cattle traceability, or lack thereof, could… impact market access to particular export destinations,” Tonsor says. “Effective cattle traceability would likely reopen closed markets more quickly and is also likely to help the US retain market access to a particular import country…. Similarly, if an import country imposes traceability as a necessary condition for beef imports, only products that are traceable would have access.” Of the world’s eight largest exporters, Tonsor says, six have adopted mandatory cattle animal identification and traceability systems.
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THE AVERAGE global surface temperature in 2011 was the ninth-warmest since 1880, and now nine of the 10 warmest years in the modern meteorological record have occurred since 2000. The US National Aeronautics and Space Administration’s (NASA) Goddard Institute for Space Studies, which monitors global surface temperatures, released an updated analysis showing temperatures around the globe in 2011 compared to the average global temperature from the mid-20th century. The data shows how Earth continues to experience warmer temperatures than several decades ago. The average temperature around the globe in 2011 was 0.51 C warmer than the mid-20th century baseline. “We know the planet is absorbing more energy than it is emitting,” institute director James Hansen says. “So we are continuing to see a trend toward higher temperatures. Even with the cooling effects of a strong La Niña influence and low solar activity for the past several years, 2011 was one of the 10 warmest years on record.”
Rural News // february 7, 2012
world 15
Halal deal opens Muslim markets PA M T I PA
THE BEEF industry is hoping to make new inroads into the tricky but potentially huge halal market this year including regaining some of its former $31 million trade to Malaysia. Indonesia is also a potential growth market if consumer demand overcomes recent introduction of interventionist policies. Meat Industry Association chief executive Tim Ritchie says in 2005 New Zealand exported 8000 metric tonnes of halal beef worth $31million to the Malaysian market. But after Malaysian inspectors found fault with the New Zealand halal system, our licensed halal meat plants fell from 41 to just two.
Last year only 1600 tonnes worth $11.2 million was exported to Malaysia. But a framework put together by the MAF in conjunction with the Malaysians will not only see at least some of that trade restored, but could encourage more beef exports to other Muslim countries. Already 14 plants are now approved to export to Malaysia including five beef, five sheepmeat and four multispecies. “This is the first step. We are looking for another audit of more plants this year. It is important we maintain that momentum,” says Ritchie. Meanwhile Ritchie hopes common sense will prevail in Indonesia which has a rising middle class
with greater demand for beef. It was our secondbiggest market in 2010, but “for political reasons they started talking about self-sufficiency and the need to create greater domestic production”. They introduced a quota system last year which heavily cut our halal exports to them. “But with rising consumer prices, and domestic consumers unable to access products, we would hope common sense will prevail and they will be more market focused.” Meanwhile a framework for processing and storage of halal products, hammered out by MAF with the Malaysians, could be important in opening up other Muslim markets. The work put into reach-
ing the agreement was recognised last year when MAF won an award for best service provider at the World Halal Forum. Fourteen meatworks are now “It sets out approved for export to Malaysia. what we do in the processdealing with overseas halal ing sense and the storage authorities. of product a bit like the “It’s a really important meat hygiene regulation,” part of our business, one Ritchie says. we take seriously, one we “It’s a framework and try to get the competitive a set of rules; this is how advantage by doing propNZ will process its halal erly. The world has looked product and so it’s provided something very tan- carefully at what New Zealand is doing in this area. gible that can be audited And we are doing it in a against. “ Several certiway that incorporates our fying authorities ensure processes stick to the stan- animal welfare considerdard and can be used when ations.”
Aussies ID lamb tenderness genes A L AN H AR M A N
AUSTRALIAN RESEARCHERS have discovered genetic markers for tenderness in lamb, expected to allow producers to manage their flocks for eating quality, and to increase lean meat yield and productivity. Sheep Co-operative Research Centre (CRC) meat programme leader Dave Pethick says the common view that lamb is potentially always tender, juicy and flavoursome is incorrect. “CRC has found that even with the best meat processing techniques, there is a wide variation in lamb eating quality and it is now clear this variation has a significant genetic component.” Commonly, genetic selection for increased growth and muscling invariably leads to tougher and less flavoursome meat. CRC has linked its genetic testing with consumer taste testing and found the lambs with the tenderness genes come out on top. CRC chief executive James Rowe says the science behind the measurement of eating quality attributes is difficult and expensive. “But recent progress in genomic technologies will enable more accurate selection of young rams with the genes to ensure eating quality and increased productivity.” CRC has a broad programme to provide sheep breeders with the ability to use DNA testing early in an animal’s life to identify a wide range of traits including meat quality and wool length. “This will deliver producers with faster improvements in their flocks and a better balance in their ram selection and breeding programmes,” Rowe says.
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24/01/12 2:10 PM
Rural News // february 7, 2012
Market Snapshot North Island c/kgCWT
Lamb - PM 16.0kg
Lamb Market Trends
Meat South Island
Lamb Prices
Beef Prices Change
Last Week
2 Wks Ago
Last Year
P2 Steer - 300kg
-10
4.45
4.55
4.30
M2 Bull - 300kg
-20
4.45
4.65
4.25
P2 Cow - 230kg
-10
3.55
3.65
3.30
6.11
M Cow - 200kg
-10
3.40
3.50
3.20
4.50
4.00
Local Trade - 230kg
-10
4.45
4.55
4.30
6.73
6.83
5.86
P2 Steer - 300kg
-5
4.30
4.35
4.05
-10
6.73
6.83
5.88
M2 Bull - 300kg
-5
4.30
4.35
3.95
-10
6.73
6.83
5.90
P2 Cow - 230kg
-5
3.35
3.40
3.05
-10
6.73
6.83
5.91
M Cow - 200kg
-5
3.25
3.30
3.00
-10
3.98
4.08
3.95
-5
4.30
4.35
4.00
Last Week
-10
7.16
7.26
6.06
-10
7.18
-10
6.73
PM - 16.0kg
-10
7.18
7.28
6.08
PX - 19.0kg
-10
7.20
7.30
6.10
PH - 22.0kg
-10
7.21
7.31
MX1 - 21kg
-10
4.40
-10
PM - 16.0kg PX - 19.0kg PH - 22.0kg
4.45
-5
4.30
Bull - M2 300kg
-20
4.45
-5
4.30
Venison - AP 60kg
-20
7.50
-20
7.45
c/kgCWT YM - 13.5kg
Mutton SI Lamb
YM - 13.5kg
North Island 16.0kg M Lamb Price $8.5 Mutton
$7.5
MX1 -
21kg
NZ Slaughter
$6.5
1000s
$5.5 5yr Ave Last Year This Year Dec
Last Year
Change c/kg
-10
$3.5 Nov
2 Wks Ago
Last Week
Steer - P2 300kg
$4.5
Change
Last Week
Change c/kg
NI Lamb
Jan
Feb
Mar
Apr
Change
$6.5
2Wks Ago
3 Wks Ago
Last Year
5yr Ave
$3.5 Nov
Dec
Mar
320
Cattle NI
+15%
38.8
33.8
47.5
42.9
241
416
Cattle SI
+8%
14.1
13.1
11.7
11.6
Lamb NZ
-19%
573
705
494
736
Cattle NZ
+13%
52.9
46.9
59.2
54.5
Mutton NZ
+45%
224
155
283
205
Bull NI
+14%
18.5
16.2
19.6
18.3
Bull SI
+33%
3.6
2.7
3.1
2.9
Str & Hfr NI
+24%
15.4
12.4
20.0
16.9
600
Str & Hfr SI
-4%
7.0
7.3
6.1
6.7
450
Cows NI
-6%
4.9
5.2
7.9
7.6
Cows SI
+13%
3.5
3.1
2.5
2.0
NZ Weekly Lamb Kill
Last Year 80
Nov
Dec
Change
Jan
Feb
Mar
60 40
Last Week
2 Wks Ago
Last Year
5yr Ave
£/lb
n/c
1.90
1.90
2.45
1.59
NZ$/kg
-9
8.00
8.09
11.11
8.54
Jan
Feb
Mar
Apr
Jan
Feb
Mar
Apr
Dec
Jan
Feb
Mar
Apr
3 Wks Ago
Last Year
5yr Ave
% Returned NI
-0%
92.5%
92.7%
54.9%
38.4%
% Returned SI
-2%
85.6%
87.1%
53.1%
49.7%
100%
$8.0
2 Wks Ago
Last Year
5yr Ave
n/c
2.13
2.13
2.05
1.51
-13
5.72
5.85
5.85
4.79
$2.10
Last Year This Year
$1.70 Nov
Dec
This Year
Mar
Apr
2Wks Ago
3 Wks Ago
Last Year
5yr Ave
-2%
81.3%
82.9%
70.95%
70.6%
% Returned SI
+1%
76.0%
75.2%
66.7%
66.2%
90%
Jan
Feb
% Returned NI
60% 50% Nov
Jan
Change
Last Year
70% 5yr Ave Last Year This Year
Last Week
Procurement Indicator
Procurement Indicator - North I.
80%
$9.0
Mar
$1.90
2Wks Ago
90%
North Island 60kg Stag Price
Feb
Demand Indicator - US 95CL Beef
This Year
£1.60 Nov
5yr Ave Last Year This Year
Jan
Last Year
Change
Dec
Dec
NZ$/kg
Procurement Indicator
Nov
Nov
95CL US$/lb
$4.0
$3.0
Oct
£2.10
South Island 300kg Steer Price
$3.5
This Year
0
Change
$3.0
$4.5
Last Year
20
Export Market Demand
Demand Indicator - UK Leg Price
£2.60
Dec
NZ Weekly Beef Kill
This Year
$4.5
Nov
5yr Ave
253
UK Leg
$3.5
Last Year
472
North Island 300kg Bull Price
5yr Ave Last Year This Year
3 Wks Ago
233
Apr
$4.0
2Wks Ago
199
Export Market Demand $5.0
Change
373
Oct Feb
1000s
Estimated Weekly Kill
-21%
0 Jan
Local Trade - 230kg
-15%
150
5yr Ave Last Year This Year
$4.5
SI
Lamb SI
300
$5.5
NI
Lamb NI
750
$7.5
c/kgCWT
NZ Slaughter
Estimated Weekly Kill
South Island 16.0kg M Lamb Price
$8.5
Beef Market Trends
Procurement Indicator - North I.
Mar 80%
$7.0
95%
Procurement Indicator - South I.
85%
$6.0 Nov
Dec
Jan
Feb
Mar
Apr
South Island 60kg Stag Price
70%
Last Year This Year
75%
60% Nov
Last Year This Year Jan
Mar
65%
$9.5
5yr Ave Last Year This Year
$8.5
55% 85%
45% Nov
Jan
Procurement Indicator - South I.
Mar 75%
Venison Prices
$7.5
Change $6.5 Nov
Dec
Jan
Feb
Mar
Apr
65%
Last Week
2 Wks Ago
Last Year
5yr Ave
NI Stag - 60kg
-20
7.50
7.70
7.20
6.47
SI Stag - 60kg
-20
7.45
7.65
7.35
6.77
55% Nov
Last Year This Year Jan
Mar
Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted). Note: Freight is paid in the North Island but not by all companies in the South Island.
Rural News // february 7, 2012
Beef Wool Price Watch Knife taken to beef prices in the North Island 300kg cwt bull prices in the North Island were sliced by another 20c/kg last week taking average prices to $4.45/kg. Prime steer prices are also back to $4.45/kg on average. Capacity has been cut back at some plants as they are not prepared to loose any more money on killing. Two short weeks of kill in the last fortnight with Auckland anniversary last week and Waitangi day this week have worked against operating prices. Indications point to an ample supply of stock for slaughter and processing space is now becoming an issue. After these two short weeks its unclear how the kill will pan out. Export cattle slaughter prices in the South Island this week saw 300kg cwt bull and steer prices pull back slightly with both now averaging $4.30/kg. In some areas the cattle are flowing out and this seems to be confined to areas where feed hasn’t been an issue. The cattle through Otago and Southland have hardened off in some cases and still requiring finishing which has tightened numbers in these areas. US importers hungry for beef The US imported beef market continues to break records with prices remaining upbeat. US imported 95CL bull prices have hit US$2.13/lb already overshadowing last years record price achieved in April of US$2.10/lb. Imported 90CL prices are also tracking higher at US$2.03/lb. Strengthening US domestic cow prices, due to tighter supplies and a lack of imported beef continue to underpin the market which looks set to remain strong throughout 2012.
Lamb
Dairy Price Watch Change
26-Jan
19-Jan
Last Year
Indicators in NZ$/T
Coarse Xbred Indic.
-19
5.15
5.34
5.28
Butter
Fine Xbred Indicator
-10
5.66
5.76
5.52
Skim Milk Powder
Lamb Indicator
-10
5.33
5.43
5.72
-2
9.08
9.10
8.13
Indicators in NZ$
Mid Micron Indic.
Wool Indicator Trends
750
4968
6168
4332
4455
4742
Whole Milk Powder
-129
4534
4663
5123
Cheddar
-145
5095
5240
5836
Dairy Prices Trends SMP But.
WMP Ched.
5,000
550 500
CXI
FXI
LI
450
4,000 Jan
700
Mar
May
Jul
Sep
Feb
Nov
Apr
Coarse Xbred Indicator
Jun
Aug
Oct
Dec
Whole Milk Powder Price (NZ$) 6,000
600 5,000
500
Last Year
Last Year
This Year
This Year 400 Nov
Dec
Jan
Feb
Mar
4,000 Nov
Apr
Overseas Price Indicators Indicators in US$/kg
Dec
Jan
Feb
Mar
Apr
Last 2 Wks
Prev. 2 Wks
Last Year
Overseas Price Indicators
Change
26-Jan
19-Jan
Last Year
Indicators in US$/T
Change
-10
4.21
4.31
4.05
Butter
n/c
3875
3875
4650
Fine Xbred Indicator
-3
4.62
4.65
4.24
Skim Milk Powder
n/c
3475
3475
3575
Lamb Indicator
-3
4.35
4.38
4.39
Whole Milk Powder
n/c
3638
3638
3863
Mid Micron Indicator
+7
7.42
7.35
6.24
Cheddar
n/c
4088
4088
4400
Coarse Xbred Indicator
Venison prices continue to head south Venison prices continue to drop as more deer flow into the processing plants and overseas market demand remains subdued. Some plants particularly in the South Island are reporting delays of up to two weeks. Indicator prices for a 60kg AP stag in the North Island last week eased to $7.50/kg while South Island prices came back to $7.45/kg.
Editor: Andrew Swallow............................................. Ph 03 688 2080 editor@ruralnews.co.nz................................... Ph 021 745 183
4830
-123
600
0.56
General Manager: Adam Fricker.................................................... Ph 09 913 9632
-137
6,000
650
0.61
Publisher: Brian Hight...................................................... Ph 09 307 0399
Last Year
700
Venison
Head office Postal address: PO Box 3855, Shortland Street, Auckland 1140
Prev. 2 Wks
7,000
Lamb prices feeling the heat The North Island lamb kill is ramping up giving meat Wool Indicator in US$ 600 companies more room to pull back prices, especially as 550 some deal with short processing weeks. Most meat 500 processors dropped their schedules by 10c/kg last week. 450 A 16kg lamb is now $7.18/kg (net) on average. It was a similar scenario in the South Island last week with export 400 CXI FXI LI lamb prices also feeling the pressure. Export lamb 350 Jan Mar May Jul Sep slaughter prices slipped to $6.73/kg (net) last week. The fall in prices can be attributed to the weak overseas Coarse Xbred Indictor in US$ markets, the strong dollar and an increasing kill. Shipping 550 is underway for the Chilled Easter market which is 500 expected to run until the end of February. Indications 450 point to the real pressure coming on operating prices 400 once the Easter Trade period is completed. This is largely 350 due to the overseas market remaining tough going with 300 in-market prices failing to hold up to last year’s levels. Nov Dec Jan Feb Mar Could the good run be coming to an end? Current lamb prices remain over $1/kg better than this time last year purely on the back of tighter supplies. But as exporters note the overseas Currency Watch Last markets are less than positive right now. UK market prices for some NZ vs. NZ Dollar Week lamb cuts are down by as much as 55p/lb on this time last year. At the US dollar 0.821 same time a much stronger dollar is further carving into returns. There is Euro 0.626 still some interest from the UK market but clearly it comes at a price. In UK pound 0.524 the EU market, indicator prices for some NZ lamb cuts are better than a Aus dollar 0.773 year ago however the stronger exchange rate continues to erode any Japan yen 63.53 benefits. Market returns to the US and China are better than 12 months ago but the volumes sent to these two markets hardly warrant the higher Euro schedules.
Rural NEWS
Last 2 Wks
Change
Dairy Prices in US$/Tonne
5,000
4,000 SMP But.
3,000
Nov
Feb
Apr
WMP Ched. Jun
Aug
Oct
Dec
Whole Milk Powder Price in US$/T
5,000 4,500 4,000 Last Year
Last Year
3,500
This Year
This Year
3,000 Nov
Apr
2 Wks Ago
4 Wks Ago
Last Year
0.802
0.778
0.773
0.619
0.601
0.564
0.518
0.501
0.486
0.771
0.761
0.781
61.83
59.81
63.92
Dec
Jan
Feb
Mar
US Dollar Last Year This Year
0.80
0.70 Nov
Dec
Jan
Feb
Mar
This Year
0.51 Dec
Jan
Apr
UK Pound Last Year This Year
Last Year
Nov
Apr
Feb
Mar
Apr
0.50
0.45 Nov
Dec
Jan
Feb
Mar
Apr
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Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.
Rural News // february 7, 2012
18 agribusiness
Several factors in NZ’s favour HISTORICALLY, THE commodities New Zealand exports tend to come under pressure during periods of global duress and uncertainty. Based on this, you’d currently expect New Zealand’s key commodity exports to be falling in price. Certainly, the past few months have seen commodity prices ease, but from extraordinary highs, and not as much as other markets. ANZ’s Commodity Price Index shows a retreat in world price levels but it is still above previous peaks. Relative to history, world prices for most commodities New Zealand exports are still either at historical records, or not too far off. There’s a number of factors we see working in favour of the New Zealand commodity prices staying close to historical highs. A weaker global scene is a clear risk, but not yet a reality. Certainly we see Europe slipping into recession, but other pockets are trading okay. However, it is clear the downside risks to the outlook are significant.
The main driver on the demand side has come from emerging market economies as they shift to becoming net importers of protein and other key foodstuffs in many instances. This support is expected to continue. Worldwide cost of production is up on many fronts via land values, wages, increasing food safety and animal welfare standards, oil and energy prices flowing into transportation and packaging, and the introduction of new technology to increase efficiency and quality of products. These cost increases have been particularly prevalent in emerging countries. Weather is also a factor in some key areas for specific commodity production, such as drought in the southern US states affecting beef and drought in Argentina and Brazil impacting corn and soybeans. An increase in the global growing area of grains has been on more marginal land, with a more volatile climate;
there are good reasons why many areas have not been cropped prior to now. This increases the marginal cost of production and provides greater risk of failure. In many cases where there has been an increase in supply, this has been required to replenish inventory levels at historical lows and remaining so. Government responses to high food inflation and the civil unrest it has
caused in parts of the globe have supported a softening in prices rather than an implosion, which has been the historical experience. Looking forward, we’ve pencilled in for soft commodity in-market prices to ease from the highs posted early in 2011, but to remain at elevated levels. The first half of this year will see further softening and is likely to present a number of challenges, particularly
for those industries more reliant on Europe as a market. The buffer for farm-gate returns will be New Zealand’s floating currency if things become too messy. Looking beyond cyclical turns, we are optimistic the long-term trend for commodities is up. However, we would caution against excessive hype, with the trend likely to be slow moving. There will be consumer price resistance, speculators entering and exiting the market, unfriendly government intervention, other substitutes becoming viable and a supply-side response to strong prices. Belarus is a recent example of supply side response, the former Soviet bloc nation emerging as a major supplier of dairy products. Its share of world cheese exports is now 7% and its growing skim milk powder (SMP) exports stand at 80,000 tonnes – or one-third of US SMP exports. Any or all of these things can upset the apple cart. • Con Williams is rural economist at ANZ. For more on ANZ’s Agricultural Price Preview email nzeconomics@anz.com
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Rural News // february 7, 2012
southern field days 19
More gear than you can poke a haggis at NE IL KEAT I NG
FARMING FIELD days don’t get much better than the Southern Field Days, the biennial show (Feb 15-17, Waimumu, near Gore) machinery suppliers clamour to get into.
Mark Dillon
pull usually is and shift it down a bit.” The south’s buoyant rural economy explains it, Dillon says. Among the ‘faithfuls’ is Gore tractor and machinery firm JJ Ltd, whose manager Geoff Sadlier says the firm has attended every event since they started 32 years ago. Sadlier has seen it develop from 60 sites on 2ha to 600 spread over 60ha. “It’s gone on from – without being critical – a reasonably amateurish sort of field day. We were asked to turn up and on the very first field day... I’m not sure if we even had set sites. “We just took our
Eastern Southland Young Farmers are the organising core. Rural News reporters, long-time observers of this event, say the mix of southern hospitality, fired-up machinery (working demonstrations) and minimal ‘townie’ stuff is unbeatable. All the big suppliers are there, at least their dealers are, Phil Gatehouse so the displays are convincing. Organising chairman Mark Dillon reports a “struggle to fit everybody in,” but they’ll do it somehow. “This is a record, the number of sites we’ve sold and the amount of land we’ve used up. “We still [had] a lot of people on the waiting list; we’ve managed to jam sites in here and there. We’re going to have to put an extra block in down the end where the tractor
machinery out and parked it where we wanted and did demonstrations across the other side of the road.” Now it’s an outstanding event. “Remember they’re not Geoff Sadler actually professionals as One special event such. Exhibitors seem to loved by visitors is the like it because there’s not tractor pull. Organiser too much bureaucracy Vaughan Coy, Tractor involved, that’s the nice thing with Young Farmers Pull NZ, says he expects a record number of entries running it rather than a – by which he means the professional identity.”
biggest tractor pull line-up New Zealand has ever seen. And around the sites – new gear and not-so-new. The new includes: • Robertson Engineering’s Strainrite Mk II Hot Post in which the foot peg is cleverly insulated from the live stanchion. • Advanced Cow Barns’ latest (pictures thereof), spearheading the company’s claim that cow housing now must be a ‘given’ in the cold south. • RX Plastics’ DIY
irrigation package for small farmers. • Tracmap’s new “high visibility” internetbased ordering system for fertiliser and spray buying. • Robertson Manu
facturing’s option for its Comby feedout wagon, to virtually eliminate wastage. • Lucas Mill’s portable sawmill for small operators.
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Rural News // february 7, 2012
20 opinion editorial
edna
Curly questions post Crafar WHAT LESSONS can New Zealand Inc take from the whole sorry saga of the Crafar Farms? Attention has focussed on the Overseas Investment Act, and whether organisations such as Pengxin should be allowed to buy farms here. It’s been suggested by some that those complaining now are only doing so because Pengxin is Chinese, and that’s probably true in a few cases, but there have long been rumblings about the steady leaching of land into foreign hands, be they Asian, American, African or European. The scale of the Crafar estate, 16 dairy farms totalling 8000ha, is another factor. Combined with the nationality issue, it’s proved a lightning rod for a storm that’s been brewing for some time. With the storm at its height this is not the time to debate reform of the Overseas Investment Act. However, it is a debate New Zealand should have. Our politicians, particularly those in power, will be reluctant to tackle such a hot potato, but they must. Food security is a critical issue and there’s a land grab going on globally. Africa is the main victim, because many of its nations have neither the wealth nor the political fortitude to prevent it; but New Zealand needs to make sure it’s not subject to the same corporate colonialism. Yes, overseas investors can be very beneficial, bringing capital that local economies cannot match. But when push comes to shove, as it will in the not-too-distant future over food, farms owned by overseas corporates (their key stakeholders being customers, shareholders and in some cases governments) will supply their own needs first, and the nations where those farms are situated will have to pay a premium to buy the produce back – if they can afford it. Such farms are a different proposition from those bought by rich foreigners who want to live here for six months of the year and maybe the Bahamas or Monte Carlo for the rest of the time, just as they are from those bought by immigrants coming here to farm themselves. There’s a spectrum of overseas investment, and the question is, how and where do we draw the lines and implement the controls, if at all? For a nation that’s nailed its colours so firmly to the free-trade mast it’s a curly question. Overseas investment aside, there’s another angle to this Crafar saga which has largely been overlooked: the lending which led to the receivership, and such a massive mortgagee sale. Just what sort of checks did the three main creditors – Westpac, Rabobank and PGG Wrightson – do before dishing out the dosh? Those seeking to apportion blame for such a large chunk of land ending up in Chinese hands would do better to focus here, than on the receiver, OIO, or Ministers Williamson and Coleman.
“Lot fifty six, Garden Manure, by Sweeping, out of Old Horse Float!”
the hound Wake up EPA! My mates at Rural News tell me an Environmental Protection Agency reminder that agricultural processors, fertiliser importers and various other farming related businesses, must register for ETS by Jan 31 arrived late afternoon, Friday Jan 27. Effectively that gave such businesses two days to react, assuming the reminder made Saturday’s papers, and was spotted. Okay, so the EPA only picked up the job of ETS admin on Jan 1, but this kind of last minute management doesn’t augur well, especially given the acronym littered complexity of the paperwork.
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Milk New Zealand...
Easy money motive
Am I the only cynical old dog out there to read a double meaning into the name of the Crafar farms buyer Milk New Zealand? I suspect the second part of the name of the Pengxin subsidiary has been lost in the translation from the Chinese – it read “...for all it’s worth”.
So Southland and Otago Police are targeting motorists speeding past school buses. Good on them, we shouldn’t do it, but your old mate can’t help wondering if it’s as much about revenue gathering as safety. As Rural Women NZ points out, the 20kmh limit past a stopped bus is “almost universally ignored”. The boys in blue down south are targeting the motoring equivalent of the sitting duck, and it’s a fair bet they’ll be using the bus and any other available cover as a mai mai.
New boss, same strategy? Last week’s news that NZX has appointed a new chief executive made your old mate muse as to how much coverage it would command in the agricultural press. Is it important to farming? Not really. Will it be well reported in mainstream media? Undoubtedly. So, the answer to the ag media coverage question should be “not much.” But half the farming papers are owned by NZX these days, so unless the sycophants have changed their spots, expect to see at least a full page splash saying what great news it is for farming!
Your old mate isn’t a great fan of texts – the fiddly keypad’s a bit tricky with paws like mine. Incoming ones are fine though, just so long as I don’t have to reply. So last week’s txt reminder from IRD about some tax I had to pay wasn’t a problem, other than the amount. Could have done without that, but then I’d already posted the cheque so felt quite smug. Question is whether NZ Post gets it there in time. IRD maybe needs to txt a few more than four working days before deadline.
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Rural News // february 7, 2012
opinion 21
Science funding impacts impartiality In the rural sector, many advisors and representatives are rewarded for the custom they bring in and the services/product they sell. Who then is the impartial advisor? In New Zealand the answer is, it is difficult to tell. The Crown Research Institute is involved with land-based production research and gains less than half their income
from the government. In an effort to stay afloat, they have taken on more and more commercially funded projects. So have the universities for a similar reason. In an attempt to justify existence, research bodies have moved into activities designed to show stakeholders they are working with them. Money has been spent on surveys, field days
ag twits
Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all dcarterminofprimaryindustries: So if I force Fonterra to give more milk to other dairy processors – who don’t sell milk in New Zealand and send their products and profits offshore – surely it will drop domestic milk prices? #howaboutthatforlogic henryfonterra@dcarterminofprimaryindustries: Despite our free-milk-inschools project and cutting local milk prices you are still screwing us with these new regulations. The sooner you become Speaker the better. #youbastard lmagrianopencountry@henryfonterra: Henry, your howls of outrage over the proposed raw milk regulations sound about as hollow as Michael Fay’s claims about the evils of selling New Zealand assets to foreigners. #giveusabreak mikefayfarmer: I’m disgusted my bid for the Crafar farms was turned down in favour of those evil Chinese buyers. Of course, it had nothing to do with the fact my price was $40m lower! #iwantacheapfarm dshearerlabour: I recently visited a large, green space in the middle of the North Island. Apparently it’s called a farm. I met a nice man called Michael who wants to buy it, but the evil Chinese landlords are stopping him. #desperateforattention winstonfirstandlast: I am not a racist, but watch out New Zealand as the yellow peril are now taking over all our farmland! #dogwhistlepolitics johnkeypm: The decision to sell Crafar farms to Chinese interests was a decision made by the OIO and had nothing to do with the Government. #notmyfault
ONLINE POLL Is the Crafar Farms’ sale to Shanghai Pengxin Group good, bad or neutral for the New Zealand economy? ● Good ● Bad ● Neutral
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and conferences at the expense of actual research where results can be translated to the farm and improve the bottom line – maximising the difference between production costs and value of output. Early press releases about products which ‘could’ or ‘might’ make a difference means agricultural research is becoming
like medical research – everything could be a cure for cancer... or cause it... depending how much you
ingest and which week it is. Frequently the expense of the next stage means the research is left at ‘could’ and ‘might’ and sometimes classed as ‘fringe’ or ‘alternative’. Sufficient funding should be made available to ensure proof of concept is followed by proof of efficacy. It should not be left to the individual to bear
the expense of the testing. Farmers are coping with an economic, climatic and ecological environment which is increasingly unpredictable, within increasing restrictions on tools that can be used to reduce risk. New Zealand needs a group of top farmers and top scientists sorting out research direction – a combina-
tion of common sense and practical understanding identifying where feasible adjustments could be made within the boundaries of commercial reality for most farms. Then the government should fund it. Simple. • Jacqueline Rowarth is Professor of Pastoral Agriculture, Massey University
Rural News // february 7, 2012
22 opinion
Courts clear on trustee duties RECENT COURT decisions make it clear our courts are placing a far greater emphasis on trustees duties and obligations in relation to family trusts than was once the case. Trustees hold the assets of a trust for the benefit of the beneficiaries. Because of this they
owe a number of duties, and are accountable for their performance to the beneficiaries. At the same time as the courts are bringing a more sceptical approach to family trusts, the New Zealand Law Commission is undertaking an extensive review of the law of trusts
in New Zealand. Five discussion papers have thus far been issued and can be accessed from the commission website. Many consider these discussion papers are a precursor to legislation the commission will soon recommend to Parliament. It is not possible to
deal with all the issues and insights raised by these papers, but here are some personal observations and interpretations from reading the papers and discussions with other professionals. The commission appears to be attracted to the US concept of legisla-
tion being able to provide a code, much the same as the Companies Act 1993 does in relation to companies. Nobody has any real idea of how many trusts are out there as there is currently no requirement to register a trust anywhere, unless it is a taxpayer and in that event it will be registered with the IRD. Many believe the commission will recommend trusts become registered, the same way companies are registered.
different and play very different roles, they are nevertheless both fiduciaries. Accordingly, the question is why not treat them in the same way? A fiduciary relationship is where one person owes a duty of loyalty to another. The above are simply a select few observations and the opinion of the writer. Anybody with an interest can visit www. lawcom.govt.nz to read the information themselves. As family businesses
“Knowledge of good trust practices and good administration of trusts is the key to avoid the courts having to intervene.”
BEFORE HE GETS DOWN TO IT, MAKE SURE THEY’RE ALL UP TO IT.
To help ensure your rams and ewes perform at tupping use ALLIANCE®, a low-dose triple combination oral drench with cobalt and selenium. During tupping, rams are at increased risk of clostridial disease, so vaccinate with MULTINE® prior to joining.
The concept of a trust ombudsmen has been mooted as one means of providing an inexpensive way to deal with some disputes over trusts, so avoiding the cost of going to the High Court. Differentiating between paid and nonpaid trustees seems to find some favour. It appears any legislation will focus on trustees duties, rather than beneficiaries rights. This is the same approach taken in the Companies Act 1993 whereby the focus is on the duties of directors of a company. Clarifying beneficiaries’ rights to receive information and documentation is a desired outcome. At present there is much uncertainty as to what beneficiaries are entitled to. Knowledge of good trust practices and good administration of trusts is the key to avoid the courts having to intervene in trust affairs. Although directors of limited liability companies and trustees are very
play a major role in the New Zealand business landscape, so do family trusts play a major role in the ownership and succession of those businesses. Accordingly, taking the time to understand the changes evolving in the New Zealand trust landscape is not only important for advisors in this field, but also the owners of those businesses. In the same way we have published a free report in both 2010 and 2011, we will be publishing our 2012 report in the first quarter of this year. The focus of this report will be the changing landscape for trusts in New Zealand and recommendations for prudent trust practices. For a free copy of this report (when available), email ocooney@clmlaw. co.nz. • Owen Cooney is a partner at Tauranga-based law firm CooneyLeesMorgan. The above information is general only and cannot be relied upon as specific advice. Contact your advisor for specific advice before taking any action.
Ewes may also need a MULTINE sensitiser to set them up for their pre-lamb shot. And so lice won’t be a problem over winter, finish the job with MAGNUM® – it’s guaranteed* to work. Trust COOPERS to get your flock ready for action. Ask for COOPERS at your local animal health retailer. *COOPERS guarantees MAGNUM will control lice in your sheep when you follow the COOPERS 10 Point Lice Management Plan. Find out more at www.coopersonline.co.nz ACVM Registration No’s: A10249, A7704, A934 and A935. ®Registered trademarks. Schering-Plough Animal Health Limited, 33 Whakatiki Street, Upper Hutt. Phone: 0800 800 543. PTUP-523-2011 Priority Partnership is a registered trademark of Nufarm Limited.
Check out our new websites www.ruralnews.co.nz www.dairynews.co.nz
Rural News // february 7, 2012
management 23
The drill does make a difference CAN A no-tillage drill affect crop yield? Five years of data from the Foundation for Arable Research (FAR) ‘Arable Cultivation Trial’ at Chertsey, Canterbury, suggest ‘yes’ is the answer to that question. This continuous trial near Ashburton began in 2003 to compare six different ways of growing arable crops in Canterbury using common rotations. The most recent five years of results were summarised by FAR’s Nick Poole. The full report is available from FAR, but since this article is about no-tillage, it is appropriate to draw attention to the two no-tilled, or as FAR puts it, “direct drilled” treatments at Chertsey since they represent two contrasting ways (drills) of undertaking no-tillage. Regardless of drill design, no-tillage, in general, is known to have a positive effect on soil health and the most recent five years of the Chertsey trial confirm this. Earlier work by Landcare Research showed the soil health of a Manawatu silt loam double-cropped for 20 years using the no-tillage treatment that’s performed best at Chertsey, and without any pasture phase, was very similar to the same soil under a 20-year un-cropped pasture field alongside. By contrast, a similar soil in the district that had been continuously cropped by cultivation for the past 20 years had deteriorated markedly. People who have already made the change to full-time no-tillage soon find they can employ different rotations and
sowing dates than they might otherwise have chosen under a full tillage regime. The main difference is that under no-tillage it is no longer necessary to periodically include a pasture and/or animal phase in the rotation in order to restore soil structure.
ment was close to producing the lowest yield of all treatments. There was, in fact, a 22% difference in yield between the two notillage treatments and a 30% difference between the “best” no-tillage treatment and the “worst’ of all treatments, which was “plough and press”. It’s a clear illustration that not only are crop-establishment practices not equal, but no-tillage drills are not equal either. FAR had earlier grown a 16.8t/ha wheat crop at Geraldine using the same “best” no-tillage treatment as at Chertsey. Since
There was a 22% difference in yield between the two notillage treatments and a 30% difference between the “best” no-tillage treatment and the “worst’ of all treatments. But in the Chertsey trial, an understandable decision was made to apply a common local rotation to all treatments and this included pastures and/or grazing animal phases. So it could be argued that the no-tillage results from Chertsey are, if anything, conservative. Interestingly, extensive former research has also shown the two notillage treatments used at Chertsey represent (on the one hand) the “best” (and on the other hand) one of the “worst” of all no-tillage options available. It is perhaps not surprising therefore that the “best” no-tillage treatment at Chertsey gave the highest average yield of all treatments and the “worst” no-tillage treat-
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the highest yielding wheat crop in the Guinness Book of Records (also grown in New Zealand) was at that time a little over 15 t/ ha, the 16.8 t/ha FAR notilled crop may well have been the highest wheat yield ever grown anywhere although it will never make the Guinness Book of Records because it was not grown as a commer-
cial crop. In the 1990s, seven years of trials at Washington State University, USA, showed that the same “best” New Zealand no-tillage treatment that was used at Chertsey had out-yielded the “best” no-tillage treatment then available in the USA by an average of 13% – a result similar to the Chertsey result some 20 years later. Paddock trials in Marlborough in 2004 (involving 11 different fields) produced an average 51% difference in the yields of brassica forage crops sown with the same “best” and “worst” no-tillage drills used at Chertsey. Another long-term trial in Australia had earlier recorded 12 years of higher soybean yields (by an average of 30%) using the same “best” no-tillage treatment compared with conventional tillage in coastal NSW. So, when people ask if no-tillage drill design can affect crop yield, even the most conservative answer would have to be ‘yes’. The reasons why have been extensively documented. More of a mystery is why every New Zealand farmer has not already made the change to superior no-tillage practices developed right here.
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Same crop-type, different drills: It’s not hard to conclude that drills can influence crop yield, says John Baker. Images supplied by Baker no-Tillage.
Transition
New solutions for transferring farm ownership
The traditional approach to transferring a farm to the next generation no longer applies. From the work we’ve been doing with farming families throughout New Zealand, we’ve identified some key insights in implementing a generational transfer plan and developing successful family enterprises. For those interested in understanding some of these keys to success, we have updated our Special Report for 2011. It is free and without obligation. For a free copy of our 2011 Special Report, email info@clmlaw.co.nz Cooney Lees Morgan: Mid-Sized Law Firm of the Year in the 2010 New Zealand Law Awards. www.clmlaw.co.nz
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Rural News // february 7, 2012
24 management
Seeking a better succession Transferring the family farm from one generation to the next can be a messy business. A lot has changed from the days when it was automatically gifted to the eldest son. Peter Burke relays one farmer’s story SIMON WALKER and his wife Louise are the fourth generation to farm Ross na Clonagh just out
of Pahiatua in the Tararua District. The name of the property dates back to Simon’s great grandfa-
ther who left Ireland aged 17 in the 1880s and soon acquired the property by ballot.
Today, Simon and Louise run 3000 Romney breeding ewes, 100 Angus cows and raise dairy graz-
ers. The place is as beautiful as the name Ross na Clonagh sounds, but the road to ownership of the
farm has been far from smooth. Walker went to Canterbury University where he gained a BCom, majoring in marketing. Once out of university he worked for two exporting companies before deciding to take on the family farm at the age of 30. “In retrospect it was too late,” he says. He spent many years trying to sort out a deal with his family and while he won’t talk about the details, it’s clear this process caused much grief and left him wondering whether it was all worth it after giving up “a damn good job” in town. It wasn’t until his father died 10 years ago that the rest of the family were finally forced to talk turkey. “All this took place during 20 years of the most difficult economic times in the history of farming in New Zealand. We had to front up with a lot of money which added an almost impossible debt
There have been no ‘formal talks’ as such yet, but when the family are together they talk about it informally. Meanwhile, Walker has talked to many others about succession planning and says from what he’s seen and read, there are no magic formulas. “While I may not have all the answers yet, I believe my experience has taught me what not to do,” he stresses. Talking often, openly and honestly about the process is best, he says. He’s aiming to be fair but concedes this almost certainly means the outcome will not be equal in dollar terms. “The best system I’ve seen so far, where there is limited financial investment or resources outside the farm business, is where the siblings have debt to the parents which secures the property and also secures a ‘needsbased’ income for the parents, rather than market
Romney ewes, an Angus breeding herd, and dairy grazers are the main enterprises.
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to the farm.” Armed with this hindsight, he’s already starting the process of negotiating with his offspring to buy Ross na Clonagh. “Hamish, who’s 23, is stock manager on the farm; Matt, 22, is working on a nearby dairy farm. Both are living at home after doing time at Lincoln and are keen to have a role in the farm in the future. So is our daughter Alice, 25, who’s a financial analyst working in Auckland, but I believe she could also add value to the farm. They are all keen to talk about how we might resolve succession.”
value rental or interest payments. “All parties, most especially the aging parents, need to ‘give a bit’ to facilitate what has been decided as a combined family wish to avoid the sale of the farm.” The idea is the next generation buys the farm from the parents for a family friendly price and picks up any debt to the bank plus a debt to the parents. The debt to the bank has to be funded out of farm income. The debt to the parents generates and justifies their income from the farm, and allows them some security over
Rural News // february 7, 2012
management 25
strategy the property. “In the end the debt owed to the parents is shared so when they die the person farming the property gets a proportion gifted to them and may only have to pay the other two their proportions based on the price of the farm at the time the deal was done or market value, whichever is the lesser – not the value of the property when the last parent dies.” Such a value is a total disincentive and means the person running the farm is always worried the work they have done and the value they have added to the property and business will, effectively, have to be paid for twice. Walker says he’s talked to his sons and suggested to them that if they can work together on the farm it will be more suc-
cessful financially. He also accepts it is desirable for the family to buy more land to make Ross na Clonagh more viable as more and more people expect something from the business. He’s a believer in the old adage that the ideal time for a person to take on the farm cheque book is 24, and one of his sons is getting close to that age now. The desire to have a fifth generation run the farm is strong. “It’s not my right to do this.... I’m essentially a caretaker.” And he has no intention of just selling up and going to sit on a beach to live off the cash he might make. He wants to give his children a chance to run the attractive property and to do it with less stress than he had to endure.
Simon Walker (centre) and sons Hamish (left) who works on the farm and Matt, who works on one nearby.
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Rural News // february 7, 2012
26 animal health
Patience pays with uninterested pups Young dogs might be 10-12 months before sheep work becomes their focus.
A WOMAN phoned the other day worried that a heading pup she had bought off me showed no interest in sheep. We talked about the pup, its upbringing
and experiences and everything she had done to encourage it to ‘start’ on sheep. She appeared to have done nothing wrong, and the pup had been given several good
Some of the best dogs have been late starters. But how long do you wait? If you are not the problem and the pup has had a perfect upbringing with many golden opportunities, when do you draw the line? I would wait 10–12 months and in that time I will have tried every trick in the book, and some. (More about this next month). It is important to space each attempt as it avoids getting frustrated on your part and possibly taking it out on the undeserving pup. There is no point trying everything you know when the pup just isn’t ready to start – remember, you can take a horse to water but you can’t make it drink. Two or three times a month I’ll give pups a safe and inviting opportunity, in a non-work situation, in the sheepyards, on four to six hand-picked sheep that have been pre worked with an older dog. I will have removed any stroppy or flighty escapees; the
opportunities. I wasn’t in the slightest bit concerned; the pup was only five months old. I told her to be patient, and get back to me in a couple of months if there was still a problem. Funnily enough she rang the next day – sheep were no longer invisible. I’m often asked about this; people get anxious if a pup isn’t eyeing, or barking noisily, at everything that moves by the time it is six months old. It is quite common for a pup to just want to be a pup, and be more interested in play and exploration, rather than chasing animals of other species. And if you think about it, Mother Nature wants to protect her young animals, be it in the wilderness or on a farm. At that age a pup has Taihape February 19: no chance if faced with Ph Anna (06) 388 1318 elk or cattle, Feilding February 26: so for their own preserPh Donna (06) 328 9171 vation some don’t have last thing I want is for a the desire to chase larger pup to get frightened or animals. injured. If the pup shows Or maybe when a pup no interest after 10 minfirst chased something, such as a cat or chicken, it utes we calmly walk away and try again another day. was growled at; or it may If you have tried all the have had a fright at an early age by something big tricks, kept calm, done nothing wrong and your and intimidating. pup still shows no inclinaA lot of pups are overtion whatsoever towards whelmed by noise; shoutstock, I’d give it to someing, whistling, barking, one else to try for a couple mobs of sheep and cattle, and the tension of a work- of weeks. It is important to choose your person ing situation. wisely; they need to be a Often the pup’s hancalm and capable person dler has unreasonable with a dog. expectations or a gruff Often a complete surly manner that is discouraging, so look at your- change of scenery and a totally different person is self first. all it takes. Consider the pup’s • Anna Holland teaches age, its upbringing, expepeople dog training. For riences and opportunities (good and bad) and be more information www. annaholland.co.nz prepared to wait a while.
Next training days
Rural News // february 7, 2012
animal health 27
Taranaki salmonella spike mystery P E TER BURKE
VETERINARIANS IN Taranaki are perplexed by an upsurge in the number of cows contracting disease salmonella in the past year. So far 16 cases have been reported in the region and this is the first time the disease has been this widespread in the Stratford area. A senior vet at Taranaki Vet Services, Craig Hassell told Rural News it’s the first time in 22 years he’s encountered such a big outbreak around Stratford. “We’ve had the odd case and generally it has affected one or two animals at the most and they have tended to get pretty sick and die. What we are now seeing is a high infection rate, with not such a high mortality rate – although some farmers have lost in excess of 10 cows.” Hassell says there’s a lot of speculation as to the
causes of the salmonella outbreak. A committee of local vets, MAF, dairy companies, the Veterinary Association and Massey University is gathering information. “The Massey University Epicentre has identified a number of risk factors, and is hoping to extend the survey into the Craig Hassell Waikato and Bay of Plenty regions.” Unusually, it doesn’t appear to be spreading from farm to farm. “There seems to be something triggering the disease on a particular farm. Maybe carrier animals on that farm have had their immune systems compromised or something happening in the gut of these cows and is triggering the disease. It seems to be farm specific.” It’s important farmers
recognise infected cows as soon as possible, then isolate the infected animals and call their vets. Once a widespread Salmonella problem has been identified, the farmer should also tell their dairy company. “Ideally they should contact their neighbours as well.” Hassell says farmers
worried about their cows getting Salmonella can vaccinate them inexpensively. And hygiene must be watched because of the risk of the disease spreading to people or other animals. “Washing hands and maintaining good hygiene in the shed is extremely important,” he says.
THE PROOF IS IN THE PREPARATION
7-day withholding with new drench RAVENSDOWN HAS launched a moxidectin drench, Moximax, which has a seven day withholding period. That compares with a 10 day withholding requirement for all other oral moxidectins, says the cooperative. Moximax’s persistent activity allows 4-5 week drench intervals when targeting Barber’s pole worms and it’s effective against all other roundworm parasites. Ravensdown also says it’s the only moxidectin formulation containing all five essential trace elements; selenium, cobalt, iodine, copper and zinc. “This [product] significantly enhances the Ravensdown animal health range making it easier to order direct,” says Gavin Goble, vet at Ravensdown. Barber’s Pole is a blood-sucking worm. Parasitised animals, especially lambs, quickly develop anaemia, bottle jaw (swelling under the jaw), lethargy and in severe cases death. Rapid weight loss is common. These symptoms can occur even before adult worms are mature enough to lay eggs, so may be seen before faecal egg counts indicate a problem. Moderate to severe infections of ewes at or around mating, while not necessarily leading to deaths, hit reproductive performance and rapid increases in faecal egg count, climbing into the thousands, are possible.
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Rural News // february 7, 2012
28 animal health
New formulation for FE control RECENT COOL temperatures may have kept a lid on the start to the facial eczema (FE) season, but that’s no reason to let down your guard, says
farm nutrition specialist Altum. It has launched an allin-one zinc product to prevent the painful, and often hidden, disease.
Zincmax+ has organic copper added to overcome the reduced copper absorption associated with dosing with zinc and consequent depletion of liver copper levels, plus a peppermint flavour to counter the palatability problems of straight zinc products. Altum’s animal nutrition manager Jackie Aveling warns just a few cows showing signs of FE can mean a large proportion of the herd are affected subclinically. “Not only can milk production in these cows be depressed by up to half, but slow wasting or sudden death may also occur in cows that have shown no prior symptoms when they are put under stress, often after calving,” she points out. Reduced drinking with traditional zinc sulphate treatments also impacts production, and there’s the risk stock don’t get enough zinc to combat the FE, which is the whole
reason the zinc’s put in the water. “Zinc treatment can also have a negative impact on young stock, impacting their copper reserves, which are a key requirement for healthy growth,” she says. Zincmax+ is metered into the water system in the same way as other zinc products, except at 28g/ cow/day rather than 25g/ cow/day to allow for the added ingredients. Late last month cool temperatures were keeping a lid on spore counts nationwide but Aveling says it is important farmers keep monitoring counts, and have a plan in place to start treatment early before spore counts become high. Zincmax+ is part of Altum’s OptiMAX range of regionally specific animal nutrition products designed to work in harmony with a complete nutrition programme by filling the micro-nutrient gaps.
Breeding facial eczema tolerance
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FACIAL ECZEMA is the subject of a lengthy lead article in Dairy NZ’s latest Technical Series publication, covering risk prediction, treatments, zinc toxicity and copper interaction issues, and breeding for tolerance. “The New Zealand sheep industry has successfully implemented breeding programmes for FE tolerance, and this is also a heritable trait in cattle... considerable progress could be made to breed dairy cattle with FE tolerance if appropriate selection procedures were developed,” it says. Research into such breeding is being funded by Dairy NZ, and one breeding company is scoring bulls based on their daughters’ tolerance to natural exposure. However, a DNA marker approach would mean bulls carrying tolerance traits could be identified, and used much sooner, if it were available, it points out. A paper on zinc sulphate dosing of water concludes it does not provide full protection and other control measures should be considered when risk is high. Dairy NZ echoes Aveling’s warning about subclinical cases, saying only about 10% of affected animals show clinical signs. Testing blood for gamma glutamyl transferase (GGT) levels helps identify subclinical disease as it correlates closely with liver damage. In terms of risk, spore counts typically soar after a spell of four or more consecutive nights with grass temperatures holding above 12 degrees C and high humidity.
Rural News // february 7, 2012
animal health 29
The Schmallenburg virus has now reached the UK, with infection confirmed in four flocks.
a n d r ew swa l low
MAF SAYS it has considered the risks associated with a new ruminant viral disease sweeping Europe and considers them “sufficiently managed.” Schmallenburg virus was late last month confirmed on four UK sheep farms and the British Veterinary Association is urging “heightened vigilance.” The disease causes congenital deformities and nervous defects in lambs, goat kids and calves. Clinical signs in affected cattle include fever, milk drop and diarrhoea. Veronica Herrera, MAF director response, told Rural News, that while MAF doesn’t test for Schmallenburg itself, it does test for similar viruses which show they are not present here, and consequently Schmallenburg isn’t thought to be present in New Zealand.
Even if it were inadvertently imported in embryos or semen, it’s likely what’s thought to be insect transmission from animal to animal wouldn’t occur here. “MAF has assessed the risk associated with semen and embryo imports and found the risks associated with semen are negligible and the risks associated with embryos are very low. Animal product imports are also considered to be negligible risk.” As it is, there have been no imports of sheep or goat embryos in recent years and MAF has contacted those who have imported bovine embryos in the past two years “to share information and ensure heightened vigilance.” “Importers have advised MAF that they have not observed suspect disease in recipient cows or resulting progeny.” There have been no imports from
Europe of live animals of susceptible species in recent years. BVA president Carl Padgett says confirmation of Schmallenberg virus in sheep flocks in England is a reminder to vets and farmers across the UK to step up vigilance. “We understand that in confirmed cases clinical signs occur in clusters and vets should ensure they know what to look for in both adult and perinatal ruminants. “While the cases in the south east of England suggest the virus is vectorborne, other potential routes of transmission are still being considered.” Meteorological modelling suggests that infection on the four farms occurred during summer/autumn 2011, with congenital defects now becoming visible at lambing time. The risk of transmission to humans is believed to be very low but it has not been ruled out.
Letter US and EU resistance issues not relevant here READERS CONCERNED by the recent story ‘Moves to reduce resistance risks’ (Rural News, January 24) highlighting moves to reduce antibiotic use in the US and European meat producing sectors should not link concerns about growing antibacterial resistance to antibiotics overseas to poultry industry practices in New Zealand. Cephalosporins,
the class of antibiotics causing concern in the US and UK, are not used in the industry here and are not licensed by MAF, so the issue is not relevant. In addition, the latest MAF study into antibiotic resistance in New Zealand (released June 2011) found antibiotic resistance in New Zealand among the lowest in the world. In the New Zealand
poultry industry we are fortunate to be free of the three major avian diseases that plague our overseas counterparts and therefore use fewer antibiotics in general. Over 99% of antibiotics used in our industry are from a spectrum that is not used in human medicine and are used to treat flora infections in the gut of poultry. Only a tiny percentage - about 0.03% - of poultry
antibiotics is from the same spectrum used in human medicine. They are only used when prescribed by vets and there is a withholding period to ensure birds are free of all traces of antibiotics before they are processed for human consumption. Michael Brooks Executive Director Poultry Industry Association of New Zealand Inc.
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Rural News // february 7, 2012
30 machinery & Products
Chinese utilities ‘sure to please’ FARM UTILITIES new next month include CB Norwood’s CF Moto Z6, a 600cc, fuel-injected side-by-side and a UTV – a utility 4x4 machine with a tipping deck, powered by a 500cc engine. These will be followed soon after by the CF Moto Z8 (an 800cc side-by-side) and the X8 (an 800cc agricultural ATV). Established globally as a farm and powersports machine maker, Norwood says, CF Moto came to the New Zealand market in 2010. Its scooters and ATVs have previously been sold here and in Australia bearing a different name. Now they’re all CF Moto. The firm, based in Hangzhou, China, has made such products for 20 years. It puts 25% of its 1300 workers to research and development. The brand enforces a zero defect policy. It makes 600,000 vehicles annually, selling them in Europe, North and South America, Australia and Africa, as well as in China. CF Moto ATVs/UTV and side-by-sides come with automatic CVT (continuous variable transmission) and selectable 2WD/4WD modes with a low/high range and independent rear suspension. The farm range of ATVs includes a base model 500cc (the X5) at $9500 incl. GST, the soon-to-arrive X8 (800cc power steer) at $14,999, the Rancher 500cc UTV at $13,999 and the new Z6 (600cc EFI) side-by-side at $14,999. All models carry a 1-year factory warranty. Two agricultural/recreational models are the CF Moto Z6 (600cc) and Z8 (800cc) with electric winch, tow hitch and alloy wheels as standard. Tel. 06 356 4920 www.cfmoto.co.nz
Juice won’t leak to earth NEW FROM Robertson Engineering, Upper Hutt, comes a new version of the Strainrite Hot Post, in which the electrified shaft is cleverly insulated from the foot peg (see picture). General manager Brian Collins says the new design utilises vast field test data gained from the Hot Post’s predecessor, resulting in a superior performance. The shaft is made of spring steel,
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Rural News // february 7, 2012
machinery & products 31
‘No going back to gear boxes’ WAIKATO FARMER and contractor Gary Rogerson last year hired four Fendt tractors for a large civil engineering job and their performance reinforced his confidence in the brand, AGCO reports. Rogerson operates Rogerson Farms Ltd in partnership with his father, Graeme. Together they do dairy and drystock farming, breed and train horses, and a variety of contracting – earthworks, effluent ponds, drilling, spraying and transport. Rogerson five years ago bought a Fendt 716, then last year leased four Fendts for a large stopbank project for Environment Waikato. The job was at Mercer and took five months, building up and realigning an old stopbank and reforming its camber to less steep. The Fendts are two 820s, a 924 and an 818. He also ran three diggers and two bulldozers on the job. The Fendts did well, he says. “With the Vario transmission they are easy to operate and fuel efficient. We were spending $40,000 a month on diesel with all the machinery we used on that job; it would have been more but for the Fendts.” To rebuild the stopbank they needed tractors with at least 160hp. They were used to pull trailers full of clay from a burrow pit, and had to travel up to 4km off-road on swampy land. “We wanted that horsepower for the trailers we had. With tractors around 200hp it meant we had a good power-to-weight ratio,” Rogerson says. “The Fendts are brilliant. They did everything we wanted. We trained three new guys up, and they quickly got the gist of driving them. They really rated them. “We also had two other tractors with gearboxes on the job but no one wanted to drive them. They say you will never go back to a gearbox once you’ve been on the Vario.” Rogerson says the Vario is the single biggest feature of Fendt tractors. “Being able to programme in the flow rates, engine revs and oil for the valves to operate the rams on the trailers is great. It makes it easy for the guys to drive. They’re a nice, quiet, comfortable tractor to drive and the cab suspension system works very well.” His interest in Fendt developed after he met a German man whose father sold and serviced them. “He always raved about them. I went to Europe in 1992 and looked around the factory. It opened my mind to what was out there. Even way back then Fendt was always ahead of the field. They’re an innovator and there are lots of little things that are better.” His own Fendt 716 does a variety of jobs in the contracting operation: pulling a 14,000 L slurry tanker, two big dump trailers, and cultivation and seeding implements including an aerator, subsoiler and drill. The tractor has had very few problems in the five years he’s owned it.
Power-to-weight ratio and Vario transmission are two features of Fendt tractors that impressed contractor Gary Rogerson during his upgrade of a big stopbank for Environment Waikato.
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Rural News // february 7, 2012
32 machinery & products
Billy-basic farm vehicle comes b e r na r d l il bu r n
ANYONE WHO had an old Suzuki SJ410 or SJ413 – or even a Land Rover – will relate to this version of Suzuki’s offering to the New Zealand market. Built in India, the Farmworker is a ‘descendant’ of those early Suzuki’s that were
a cheaper go-anywhere 4WD much favoured years ago by Kiwi farmers. The Farmworker comes in three body styles, the cheapest a canvas roofed wellside version (Versatile), a fiberglass roof model with wellside and a flat-deck version – the flat deck built here in
New Zealand. The model we had on test, the wellside, came with accessories such as seat covers, heater, crate, towbar and bull bars. Lots more can be added, such as half doors and power steering, as they come billy basic and can be specced to what you require. The
Lots of extras can be added to the basic Suzuki Farmworker.
first thing I would do is throw out the carpet on the floor and put in some decent rubber mats along with the underseal option. I didn’t find the manual steering too heavy, and it gives better feedback in a
4WD situation. The heater has all the controls on the dash, but the actual heater is extra. On the model tested, the roof comes off by undoing eight bolts, leaving the roll bar, then the screen can be folded
down; this will appeal to the hunting types. The billy basic model with the canvas roof and ordinary road tyres retails for $13,995 including the God Save Taihape tax. Compare that to a 400cc
quad, and for an older farmer it could be another option. Even the model we tested at $18,990 is only marginally dearer than a big quad, and for all intents and purposes, more useful. Also it has a
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Rural News // february 7, 2012
machinery & products 33
from favoured stock roof to keep you dry, and if required the radio and heater to keep you entertained and warm. The fuel-injected 1298cc engine develops 80hp (60kW) and 103Nm torque at 4500rpm, but provides the Farmworker with adequate power and performance.
There are no fuel economy figures quoted, but the 40L fuel tank will provide plenty of hours of use. It can’t be any hungrier than a big quad. I found lots to like about this machine that weighs less than a tonne. For the money, it beats a UTV and I’d expect
The main drawback is because it doesn’t have compliance it can’t be road registered, but for dedicated on-farm work, I’d take a look. GOOD: durable and known running gear, no electronics to go wrong, cheaper running costs probably than
Perhaps a little high-geared, but prepared to lug a bit.
This reviewer found the gearing higher than he remembered in the vehicles of old, but then, is this because it is geared for road conditions in its country of origin? Even in first gear, low range in the transfer box it felt highgeared in steep terrain, but to give the machine its due, it was prepared to lug a bit, and I’m told they get better with a few clicks on. My test machine had only done 200 kilometres. The flat-deck and wellside models come with the excellent Maxxus tyres, which provide sure contact with most surfaces, but a replacement set will set you back about $1200.
running costs to be less. The ability to tow 500kg as well as put 500kg on its deck is a bonus as well, and we all know that Kiwi farmers abide by the manufacturers recommendations when it comes to towing and loading. Being cart sprung (leaf springs front and rear) may not give the best ride, but at least we know this system is durable, and our farm tracks would probably mimic roads in India. I found the Farmworker a capable and stable offroader; for most people, it will take you where you wish. Suzuki offers a good two-year warranty. Hauls more than an ATV.
MS1262
ATV or UTV. NOT SO GOOD: poor steering lock, carpet needs replacing with rubber mat, high gearing. VERDICT: a strong and capable farm machine that provides all-weather protection with genuine capability at hugely competitive pricing.
Chuck out the carpets; rubber matting would be better.
Rural News // february 7, 2012
34 machinery & products Power in Ashburton SIMON JACKSON is appointed dealer principal of Power Farming’s new branch at Ashburton. He was formerly national product manager at Landpower Group, responsible for a range of machinery. Jackson, born and bred a Canterbury man, says he is “hugely optimistic about the long-term prospects for farming in the area, and keen to get out and about in the local farming community to show what we can offer.”
The branch is operating in new premises at 233 Alford Forest Road. Tel. 03 307 7154
New standard in moisture tests TRADITIONAL MOISTURE measurement techniques for seeds, grains and forages are being called into question by the importer of a new state-ofthe-art meter. The problem with heat
lamp and balance systems is they often drive off more than just moisture, while electronic capacitance meters are at best an assay dependent on calibration, explains Jeremy Talbot, of Talbot Agricul-
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FAR comment FAR’s RICHARD Chynoweth admits he’s impressed with the Sinar meter but says like all tests – even ovens – it isn’t infallible. “You’ve got to [correctly] set the parameters it stops at. It is good, and more difficult to get wrong, but it won’t necessarily give you the right answer unless it’s calibrated right.” A standard moisture testing method agreed between all seed companies would help growers know what they’re aiming for, he suggests.
ture. He believes inaccurate testing is costing growers and/or seed processors, thousands, if not tens of thousands of dollars, particularly with grass seed. “With a heat lamp test they try to burn the grass until there’s no more moisture, but they’re not just driving off the free moisture, they’re driving off the volatile oils and moisture that should be held in the protein. “Having the moisture right on the seed test gives a bigger payback than a lot of the chemical and fertiliser used.” Tests that drive off oils and non-free moisture will give a higher-thanactual moisture reading, which could prompt the grower or processor to over-dry seed. In the worst case scenario, that could damage germination, rendering worthless what was supposed to be highvalue seed. Equally, an under assessment of moisture content could lead to costly rejections and/ or drying costs at the processors, or heating in the silo which in turn damages germination. The meter Talbot’s marketing in New Zealand, is the Sinar Max50 which uses a halogen light to heat grain. Automa-
tion prevents seed temperature rising to a point where anything other than free moisture would be driven off. “You can’t burn or over dry the seed.” It also means the operator can put the sample in, then get on with something else without worrying about loss of accuracy, results or fire risk should all the free moisture be removed before they return. There’s no need to weigh or reweigh the sample before or after the drying process, removing another area of human error, and readings are expressed as either moisture or drymatter percentage, with no weight loss calculation required. “This machine has been shown to meet the ISTA standard of 0.1% accuracy and tests in New Zealand (by FAR) have found it the most reliable and repeatable. It can also test any crop, even forage.” At $2800 + GST Talbot admits it’s not cheap but considering the value of the crops involved, he believes it’s justified. “It is a professional laboratory tool but as farmers that’s what we’re supposed to be – professionals.” Tel. 03 741 8187
Easier hay handling NATIONWIDE DISTRIBUTION NETWORK KAITAIA: (09) 408 0670 DARGAVILLE: (09) 439 6544 WHANGAREI: (09) 438 1319 PAEROA: (07) 862 9064 MORRINSVILLE: (07) 889 7055 ROTORUA: (07) 345 8560 GISBORNE: (06) 863 2612 NEW PLYMOUTH: (06) 758 2274 HAWERA: (06) 278 5119 WAIPUKURAU: (06) 858 6041 PALMERSTON NORTH: (06) 354 7164 (Excludes POTTINGER) FOXTON: (06) 363 7193 (POTTINGER Only) MASTERTON: (06) 377 3009 NELSON: (03) 544 9125 BLENHEIM: (03) 579 1111 KAIKOURA: (03) 319 7119 ASHBURTON: (03) 307 8027 GREYMOUTH: (03) 768 5116 AMBERLEY: (03) 314 9055 LEESTON: (03) 324 3791 TIMARU: (03) 687 4005 OAMARU: (03) 437 1111 MOSGIEL: (03) 489 8199 GORE: (03) 203 9970 INVERCARGILL: (03) 211 0013 ALL OTHER AREAS: (07) 823 7582
HAY BALE ‘bundling’ (collecting, stacking, tying) is said to be easy with a new machine from Giltrap Agrizone. The Arcusin B14 multipack stacker, made in Spain, collects 10, 12 or 14 conventional bales and ties them ready for collection. It can gather 500 bales an hour. “It is fully automatic but can be operated manually from the cab or from the machine when it is stationary,” says product specialist, Greig Singer. Tied bales can be wrapped or, if necessary, lifted by a Stolle Pro-H attached to a frontloader onto a truck. Minimum power 95hp. Tel. 027 266 7897
Rural News // february 7, 2012
vintage/rural trader 35
Ploughing the time-honoured way TONY H O PK I NSON
A LIFETIME with horses sees Derrick Thornton changing and adapting things to reflect his age and the health of a 70 year old. “I have recently imported a single furrow plough used by the Amish people for 100 years and it has a seat on it,” says Thornton. Horse ploughing has traditionally been walk behind with the horses guided by the ploughman’s reins but Thornton has a serious left foot injury that prevents his walking behind a team during a 3.5 hour contest. He has qualified and will compete in the horse ploughing section of the New Zealand Ploughing Championships on April 14 and 15 at Cambridge. This section will be sponsored by Rural News Group. Thornton left school in 1956 to help on the family farm at Waeranga, 50km
south of Auckland. With its heavy soils, in wet winters the tractor often bogged down during feeding out. He acquired two Clydesdales and a sledge, solving the problem, and used them for more farm jobs. So began a life-long love affair with the breed. “At one stage we had a team of six horses that would tow a three-furrow plough (900mm) that could really shift some soil.” He started a farrier apprenticeship in 1957 and worked in the Te Rapa, Cambridge and Te Awamutu areas mainly with thoroughbreds. Still retaining his interest in Clydesdales, in 1990 he entered his first horse ploughing competition and has now entered “about 2000” contests since. He has ploughed all around New Zealand as far south as Clinton and at the World Championships at Methven. His highest placing at a New Zealand champion-
ship has been a third. He and his wife Margaret (aka Jimmie), married 48 years, now have DT Clydesdales stud on 13ha on the slopes of Maungatautari mountain near Cambridge. His two present plough horses are a full brother and sister that he has bred, broke in and trained: Howie, a six-year-old gelding, and Nell, a five-yearold filly. Tractor ploughmen check the diesel and turn the key; preparing a plough horse is more involved. First there are bridle and bit to which the reins are attached, then the collar is put on and the chains attached. Because he now has a plough with a pole for steering, Thorn-
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ton puts on a ‘britchon’ which attaches to the pole and acts as a brake so the following implement does not run into the horses’
back feet. A ‘crupper’ fits under the horses’ tails, centring the harness and preventing it from slipping forward. Straps from the inside of each horse’s bridle to the top of the collar of the other
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horse keep them walking together, along with straps through the collars to attach each horse to the front of the pole. Chains from the collar go to the ‘swingle tree’ (aka as ‘whipple tree’) and
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attach to the plough or implement. The furrow horse works with its four hooves in the furrow, the land horse’s hooves tred the unploughed ground. Furrow depth is 125 mm.
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DERRICK THORNTON holds the Millar Family Trophy, awarded to the top point scorer in the horse section at the Reporoa qualifying event for the New Zealand Ploughing Association Championships. It is awarded only at the Reporoa event and presented by the Millar family to honour the memory of their father Roy who in 1951 settled there on a ballot farm. He was a keen ploughman. The wooden base is made from a totara log excavated on his farm and believed 2000 years old.
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