rural news 3 dec 2013

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DECEMBER 3, 2013: ISSUE 551 www.ruralnews.co.nz RURAL NEWS AGRIBUSINESS Sheep jetter maker expands their export market into Asia. PAGE 31 ARABLE FAR visits South Canterbury for its first major field day of the season. PAGE 36 FED FARMERS Fed leader fears that farm debt could rise by another $1.5 billion if interest rates rise. PAGE 16 TO ALL FARMERS, FOR ALL FARMERS ROLE MODEL! Brigitte Ravera is in her third year of an agricultural science degree at Lincoln University – pictured with Primary Industries Minister Nathan Guy. She was one of five young people, now making successful careers in agriculture, who spoke on a farm experience trip to the Manawatu last week for secondary school science teachers and careers advisors from Wellington to raise awareness of career opportunities in the primary sector. The teachers praised Brigitte, and her fellow young colleagues, as outstanding role models for farming. More on the trip and Brigitte on pages 8-9. Danone plays hardball! FONTERRA IS eyeing commercial deals with seven of the eight companies caught up in the false botulism scare. However, one company – French dairy giant Danone – is playing hardball and negotiations are continuing. Speaking at Fonterra’s annual meeting in Edendale last week, chief executive Theo Spierings updated shareholders on the co-op’s response to the fallout from the whey protein con- centrate (WPC80) saga. Spierings told shareholders Fonterra was “in a good space” with its rebuild process with regulators and customers around the world. “Right now we are in rebuild phase in the market…. I would say we are in a good space with local authorities and quite a good space with customers. Of the eight customers, seven have been addressed and there are commercial deals on the table… one not yet and you know who I’m talking about.” Danone is the parent company of Nutricia Australia New Zealand which produces Karicare infant formula, one of the affected and recalled products. Media reports suggest Danone is seek- ing $320 million in damages from Fon- terra. Spierings later told Rural News that Fonterra had written back to Danone. SUDESH KISSUN [email protected] Fonterra is keen on getting a commer- cial deal with all parties involved, he says. “There are two ways to solve this: either you have a commercial deal or a legal deal. A legal deal is a lose-lose sit- uation for both parties.” Spierings says Fonterra is close to a commercial deal with Abbott, another global infant formula player which received base infant formula powder made from the batch of WPC80. In its third-quarter 2013 results released last month, Abbott referred to product recall negatively impacting revenue. It says while international paediatric sales were up 3% on an operational basis, they were “negatively impacted by a supplier Apathy angst VOTER APATHY could prove the biggest barrier to sector reform, the Meat Industry Excellence group is warning in the run-up to the meat cooperative board elections. “The greatest thing is to get out there and vote, and to ring around all your mates,” MIE deputy chair Alan Richardson told one of the group’s recent round of 19 meetings. Farmer apathy “has killed a lot of things since the wool board dis- solution,” he added, having earlier reiterated that MIE is determined to see sector reform through, how- ever long it takes. “MIE’s got a strategy and we’re not going away…. We’ll keep put- ting people onto those boards until we get change.” ‘Those boards’ may well include Beef + Lamb New Zealand, Rural News understands, however MIE chairman John McCarthy has declined to comment on that oppor- tunity to date. “Our immediate focus is on the cooperative board elections,” he told Rural News late last week. “We do not want to distract from that until they are out the way.” With two more days of meetings to go, he estimated MIE had already had 400-500 farmers attend to hear and quiz cooperative board candi- dates Don Morrison (Alliance), Dan ANDREW SWALLOW [email protected] TO PAGE 4 TO PAGE 11 0800 731 266 WWW.RD1.COM SEASONAL GIFT RANGE IN STORE NOW CHECK OUT THE RD1 VISIT US TODAY. GUN SAFE 5-7 # 221208 $299 99 ASSORTED BOOKS # 248211 FROM $34 99 CHILDRENS’ POOL WITH SUNSHADE # 247616 $99 99

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Page 1: Rural News 3 Dec 2013

DECEMBER 3, 2013: ISSUE 551 www.ruralnews.co.nz

RURALNEWS

AGRIBUSINESSSheep jetter maker expands their export market into Asia. PAGE 31

ARABLEFAR visits South Canterbury for its first major field day of the season. PAGE 36 FED FARMERS

Fed leader fears that farm debt could

rise by another $1.5 billion

if interest rates rise.PAGE 16

TO ALL FARMERS, FOR ALL FARMERS

ROLE MODEL!Brigitte Ravera is in her third year

of an agricultural science degree at Lincoln University – pictured with

Primary Industries Minister Nathan Guy. She was one of five young people, now making successful

careers in agriculture, who spoke on a farm experience trip to the

Manawatu last week for secondary school science teachers and careers

advisors from Wellington to raise awareness of career opportunities

in the primary sector. The teachers praised Brigitte, and her fellow young

colleagues, as outstanding role models for farming. More on the trip

and Brigitte on pages 8-9.

Danone plays hardball!FONTERRA IS eyeing commercial deals with seven of the eight companies caught up in the false botulism scare.

However, one company – French dairy giant Danone – is playing hardball and negotiations are continuing.

Speaking at Fonterra’s annual meeting in Edendale last week, chief executive Theo Spierings updated

shareholders on the co-op’s response to the fallout from the whey protein con-centrate (WPC80) saga.

Spierings told shareholders Fonterra was “in a good space” with its rebuild process with regulators and customers around the world.

“Right now we are in rebuild phase in the market…. I would say we are in a good space with local authorities and quite a good space with customers. Of the eight customers, seven have been

addressed and there are commercial deals on the table… one not yet and you know who I’m talking about.”

Danone is the parent company of Nutricia Australia New Zealand which produces Karicare infant formula, one of the affected and recalled products. Media reports suggest Danone is seek-ing $320 million in damages from Fon-terra.

Spierings later told Rural News that Fonterra had written back to Danone.

SUDESH KISSUN

[email protected]

Fonterra is keen on getting a commer-cial deal with all parties involved, he says. “There are two ways to solve this: either you have a commercial deal or a legal deal. A legal deal is a lose-lose sit-uation for both parties.”

Spierings says Fonterra is close to a commercial deal with Abbott, another global infant formula player which received base infant formula powder made from the batch of WPC80. In its third-quarter 2013 results released last month, Abbott referred to product recall negatively impacting revenue. It says while international paediatric sales were up 3% on an operational basis, they were “negatively impacted by a supplier

Apathy angst

VOTER APATHY could prove the biggest barrier to sector reform, the Meat Industry Excellence group is warning in the run-up to the meat cooperative board elections.

“The greatest thing is to get out there and vote, and to ring around all your mates,” MIE deputy chair Alan Richardson told one of the group’s recent round of 19 meetings.

Farmer apathy “has killed a lot of things since the wool board dis-solution,” he added, having earlier reiterated that MIE is determined to see sector reform through, how-ever long it takes.

“MIE’s got a strategy and we’re not going away…. We’ll keep put-ting people onto those boards until we get change.”

‘Those boards’ may well include Beef + Lamb New Zealand, Rural News understands, however MIE chairman John McCarthy has declined to comment on that oppor-tunity to date.

“Our immediate focus is on the cooperative board elections,” he told Rural News late last week. “We do not want to distract from that until they are out the way.”

With two more days of meetings to go, he estimated MIE had already had 400-500 farmers attend to hear and quiz cooperative board candi-dates Don Morrison (Alliance), Dan

ANDREW SWALLOW

[email protected]

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Page 2: Rural News 3 Dec 2013

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Page 3: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

NEWS 3

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ABC audited circulation 81,232 as at 30.06.2013

NEWS�..............................1-22

WORLD�.............................. 23

MARKETS�.................... 24-25

AGRIBUSINESS�........... 28-31

HOUND, EDNA�................... 32

CONTACTS�......................... 32

OPINION�....................... 32-35

MANAGEMENT�........... 36-39

ANIMAL HEALTH�........40-43

MACHINERY AND PRODUCTS�..................44-49

RURAL TRADER�.......... 50-51

ISSUE 551www.ruralnews.co.nz

FORMER PPCS chairman Reese Hart, who was rolled by MIAG in 2007, warned MIE’s candidates “the work you’re doing now is the easy part of the job,” at MIE’s meeting in Pleas-ant Point.

He urged them to monitor more than just the cooperatives because there are “people in the industry who, shall we say, are less than help-ful,” he said, pointing to the failure of the tradeable slaughter rights pro-posal as evidence of that. “The fact is the negotiations broke down because some companies boycotted them.”

He suggested to MIE that if a com-pany obstructs progress it should be “named and shamed” so farmers

could return the compliment with a supply boycott. “You people have enormous power if you realise it.”

However, that’s not to say the can-didates would have any power initially on the cooperative boards, if elected. As newcomers they’d be the odd ones out and would have to stay strong to their principles and work hard to gain influence, he stressed.

Silver Fern candidate Richard Young echoed Hart’s point about the power of supply, saying if farmers supplied their stock only to compa-nies leading sector reform, the costs of restructuring – ie plant closures – could fall on those outside the pro-cess. – Andrew Swallow

That’s the easy part

Deer NZ gets PGP fundingHAVING BEEN turned down at its first attempt, Deer Industry New Zea-land has succeeded in getting $8.3m of Primary Growth Partnership funding to progress its Passion2Profit industry strategy.

DINZ chairman Andy Macfarlane told a field day last week that DINZ had heard late in the week before that its bid had been accepted.

“It’s a lot of money and we need to make sure it works,” he stressed to farmers at Braemar Station, on the east-ern shore of Lake Pukaki in the Mack-enzie Basin. “It’s got to make a real difference, not just ‘shift deck chairs on the Titanic’.”

A PGP application in October 2012 had been turned down because the strategy didn’t show enough connec-tion to the market. That had since been worked on and the application was resubmitted in July.

At the field day Macfarlane acknowl-edged the concern deer farmers have voiced that the sector is continuing to shrink but assured them “there’s been a hell of a lot going on behind the scenes, a lot we’ve not been able to tell you about”.

“We’re well aware of the confidence issue in the deer industry and across the wider meat industry,” he said.

DINZ has been talking with five pro-cessor-exporters – Alliance, Silver Fern Farms, Duncan, First Light Foods and Mountain River – about a strategy to dif-ferentiate top-end chilled New Zealand venison cuts from game supplies in the European market.

After nine months of preliminary

talks, the processors last month agreed to go to the business-case stage of a strategy to roll out the Cervena brand, as used in the US, in Europe. “There’s no ink on the paper yet but it is looking very promising.”

A coordinated approach is also being taken on entry into Asian markets. “When we do go into Asia we need to go in together and make sure we don’t eat each other’s lunch.”

At present only two processing plants are cleared for supply to China, a potentially massive market, he pointed out.

The Passion2Profit strategy should add $2.40/kg in value, so by 2023 this year’s peak schedule of $8.73/kg will, “in today’s dollars”, be $11.38/kg, he pre-dicted. “And if the tide comes back in and the overall market lifts, this [added value] would be on top of that.”

But Macfarlane warned the market-ing strategies are not going to lift sched-ules in the short-term, with EU markets remaining “very soggy”.

“It would be remiss of me to say we’re going to have any answers in six to nine months,” he said, predicting this season’s schedule would bottom-out at $6.30-6.50/kg, subject to exchange rates being unchanged.

The Passion2Profit strategy also includes on-farm productivity improve-ment, including developing use of breeding values, improved animal health and better feed management.

Small groups of leading deer farmers working together in an ‘advance party’ will be a key driver for change of on-farm practice.

With marketing and productivity advances combined, deer farming could become “by far and away the second

ANDREW SWALLOW

[email protected]

most profitable land use in New Zealand,” said Macfarlane.

He urged farmers to back processors supporting the joint marketing approach with a supply com-mitment of at least a year, but preferably three years. “If you’re not happy after three years, then you change.”

Deer Industry NZ chair Andy

Macfarlane.

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Page 4: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

4 NEWS

Jex-Blake (SFF) and Richard Young (SFF). “We’ve had huge support and there’s been hardly a negative comment by the time the troops have finished.”

McCarthy echoes Richardson’s call for cooperative shareholders to use their voting rights. “We’ve got to do better than the 20% turnout which is the historic participation rate. At 20% farmers are getting the boards and industry structure they deserve.”

A growing number of influential people in the industry and in politics are backing MIE’s campaign, he says, with last month’s report by the Parliamentary Commissioner for the Environment on land use change adding to the momentum.

“When there’s only one horse in town – dairy – economically that’s potentially suicidal. It’s economics 101 not to have all your eggs in one basket. That brings a serious risk and you’re only one major food scare away from disaster.”

Fonterra director John Monaghan, whom MIE has proposed as an independent director of Alliance by way of a non-binding resolution to be put at Alliance’s annual meeting in Invercargill on December 13, was also at MIE’s meetings and reiterated the need to get out and vote.

When it comes to seeking Government clearance for reforms, the first thing Government would ask is, how strong is the mandate? he said. “You’ve got to get out and vote, show that you care about your industry.”

Flagging his experience assessing candidates for Fonterra’s board over the years, he gave a ringing endorsement for MIE’s men. “I look at these three people who’ve put their hands up to be the future of the red meat sector and I think you’d be very well served.”

While MIE advocates a merger of the cooperatives as a starting point, Monaghan says that’s not necessarily the only option; talking

industry consolidation, whatever form that might take, is more appropriate.

Reflecting on Fonterra’s formation, he questioned whether meat industry players had ever talked with real intent of merging, as opposed to simply having talks because that’s what farmers were calling for.

Mark Paterson, who moved the resolution that Monaghan be appointed, warned of the tight timeframe for returning voting papers, and the potential pitfalls of the proxy process. “You have to put the name of someone who will be at the meeting as your proxy…. And [the voting papers] have to be back in Invercargill by December 11.”

He and Monaghan resolution seconder Dr Mandy Bell would be present at the annual meeting so could be named as proxies, he pointed out.

FROM PAGE 1

@rural_news

facebook.com/ruralnews

Apathy angst

Beef+Lamb ‘agnostic’ on MIESPEAKING ON Beef + Lamb NZ’s monthly conference call ‘Scene and Herd’ last week, chief executive Scott Champion described the levy body’s position on sector reforms as “agnostic”.

“We just encourage our farmers to par-ticipate. We don’t have a view on how they should vote or which meat company they should support. Our role is one of aware-ness.”

He did, however, encourage producers to “get closer to” their chosen meat com-pany, implying loyalty of supply is an issue for the industry.

Nominations for Beef + Lamb NZ’s eastern North Island director position and southern South Island seat close on Decem-ber 20. Both seats are vacant as retiring directors Mike Petersen and Leon Black respectively are not seeking re-election.

Scott Champion

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Page 5: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

MARLBOROUGH ENTREPRENEUR and winemaker Peter Yealands has won the Lincoln University Foun-dation South Island Farmer of the Year award for 2013.

The finals were held at Lincoln University late last week, chief Judge Nicky Hyslop saying the Yealands entry stood out for its innovation, entrepre-neurship and vision. The prize is $20,000 for overseas travel for study, research, mar-keting or a combination of these.

The Yealands entry, one of six finalists from the South Island, also won the Silver Fern Farms ‘Plate to Pasture’ award for consumer aware-ness, and the Lincoln University award for best use of technology and innovation, receiving $5000 for each.

“Peter impressed us with his philosophy of ‘think boldly and never say it can’t be done’,” Hyslop says. “He also demonstrated outstanding innovation inside and outside the winery business. That was backed up by sound business practices integrated into every aspect of the operation, and a holistic ‘vine to bottle’ approach.”

Andrew, Karen and Sam Simpson from Lake Tekapo were runners-up with their high country Merino sheep station, Balmoral, that has diversified into forestry, deer, cropping, property development, conservation recreation, value-added processing of their wool and meat.

Hyslop says this entry was also notable for its vision and entrepreneurship, the extensive skill set within the family operation, its business and governance struc-tures and international networking.

The BNZ award for best human resource manage-ment and the award for resource use efficiency were both taken by North Canterbury dairy farmers Alan and Sharron Davie-Martin, winning $5000 for each.

Lincoln University Foundation chair Ben Todhunter says there was an outstanding group of finalists this year, all of high calibre.

NEWS 5

Winemaker wins another title

Peter Yealands

Opportunities abound in ThailandPRIMARY INDUSTRIES Minister Nathan Guy says there are good opportunities for New Zea-land to sell more primary exports to Thailand.

Guy is just back from Thailand where he and the Prime Minister and representatives of 23 businesses, mainly food and beverage, went looking to expand exports.

Guy launched a big promotion of New Zea-land products in a large supermarket in Bang-kok. He was amazed by the freshness and quality of the products, showing New Zealand export-ers are adding a lot of value.

“The feedback from our ambassador in Bang-kok is that the promotion has been hugely suc-cessful. The reaction from consumers is they want to consume more New Zealand products

because they understand our food safety systems are world leading and [the prod-ucts high] quality and fresh.”

But there are problems in developing the Thai market: a 19% duty on our products, though this is dropping 3% each year and will cease by 2020; and a cap on the volume of products, espe-cially beef, of which we sell about 800 tonnes annually to Thailand. Once the cap is reached a 50% tariff applies.

“The beef and dairy industry people on the trip told us we are hitting the cap in the first couple of months [each year],” Guy says. “The consumers want more of our dairy and meat products so we’ve asked their prime minister if there is any way to adjust the caps, and they are

seriously considering our request. This is great because it is hard as an exporter to get any con-tinuity of product if we are only in the market for a few months.”

At least 24 million tourists visit Thailand presenting opportunities for New Zealand to sell products to the hotel and restaurant trade to feed visitors, Guy says. Thailand has 67 mil-lion people, 60% under 35 years, highly educated and growing wealthier.

Fonterra chair John Wilson and Primary Industries Minister Nathan Guy doing the hard yards in Thailand.

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Page 6: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

6 NEWS: FONTERRA AGM

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New director excited to be on deck

FONTERRA’S NEWEST board member Michael Spaans is excited about coming back to a governance role in the co-op.

The dairy farmer from Te Aroha served on the Fonterra Sharehold-ers Council for eight years. He was elected last week at the co-op’s annual meeting, replacing former chairman Sir Henry van der Heyden as a director. Sitting directors Ian Farrelly and Malcolm Bailey were re-elected for a three-year term.

Speaking to Rural News after his election, Spaans said the passion for serving Fonterra never left him.

“After leaving the Fonterra Shareholders Council, I pursued governance opportunities within the dairy industry,” he says. “But the passion for Fonterra never really leaves you. It gets into your blood.”

Spaans, who missed out last year, thanked shareholders for their support and looks forward to contributing to the board.

He believes the co-op is well placed with a strong capital structure and a stable board to grow its busi-ness and improve returns.

Spaans is now reviewing his other directorships. He plans to remain a DairyNZ director but has resigned the chairmanship of Animal Breed-ing Services Ltd. He is chairman of Waikato Innovation Park Ltd, a director of Shoof International Ltd and Rimu SA and is a DairyNZ-appointed director of OSPRI New Zealand Ltd.

Fonterra shareholders ratified the appointment of David Jackson

and Simon Israel to the board for another term.

Jackson, a former chairman of accounting firm Ernst and Young, joined the board in 2007 and chairs

the audit, finance and risk committee. His appointment received 94% sup-port.

Israel joined the board earlier this year. Born in Auck-land, he has served in governance roles in Asia for the last 33 years. He is chairman of Singapore Tele-communications and

served as chairman Asia Pacific for French dairy giant Danone. Israel received 95% support among share-holders.

Fonterra shareholders also voted to approve a 2014 budget worth $3.6 million for the Share-holders Council.

FONTERRA CHIEF executive Theo Spierings says the co-op needs to lift its game on sustainability throughout its supply chain.

He told the co-op’s annual meeting it was not only about sustainable farming.“I’m talking about sustainability through the chain, end to end… onfarm, in facto-

ries and in logistics. If we have a clear story in sustainability we can connect that to our strategy and our strategy becomes stronger.”

Spierings says the botulism scare earlier this year had been an ‘’enormous elephant in the room’’ and it was still in the room for some.

Coming out of the crisis was an excellent opportunity to lift the game, he says.

SUDESH KISSUN

[email protected]

Michael Spaans

Time to lift game

Fonterra CEO Theo Spierings chats with farmer shareholders at lunch during last weeks’ annual meeting.

Page 7: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

NEWS: FONTERRA AGM 7

FONTERRA FARMERS are committed to fencing 100% of waterways on farms, says chairman John Wilson.

Fencing audit results (due December 1) will show “close to 90%” of waterways on Fonterra farms have been fenced. Wilson says farmers have fenced 20,400km of waterways – a remarkable effort. Work is underway to fence the remaining 4000km.

The Sustainable Dairying: Water Accord (SDWA) released in February said dairy companies would ensure 90% of waterways were excluded by May 31, 2014. And the companies will work towards excluding cattle from 100% of waterways on farms by May 31, 2017.

Wilson says Fonterra remains com-mitted to meeting its targets under the accord and refers to the “close to 90%” fenced figure as “a remarkable effort by our farmers”. “And there is a massive focus to reach the 100% target,” he told Rural News at the co-op’s annual meeting in Edendale last week.

Wilson says some farmers yet to achieve the 100% target have good rea-sons for not having done so. “Some of these farms are flood-prone and have dif-ficult terrain that is hard to access, but we

all remain committed to having 100% of waterways with stock exclusion in place.”

Fonterra Shareholders Council chair-man Ian Brown says farmers need to con-tinue to evolve and adapt to challenges on sustainability.

Brown told the meeting most Fonterra farmers have been pro-active on environ-mental sustainability efforts.

“This is evidenced by the substantial personal investment and progress made in effluent management, fencing, ripar-ian planting and other environmentally focussed upgrades to our businesses.

“We should also be aware there are a minority among us who still have a way to go and it is in all our interests that they continue to work to reach the level required.

“Change will take time. If we are to retain our freedom to farm, grow our milk solids and maintain our competitive advantage it is necessary to continually work toward actions we can take onfarm to improve water quality.”

Fonterra sustainability experts visit all 10,600 co-op farms where environmental practice is a key topic of discussion. – Sudesh Kissun

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FONTERRA WOULD have faced paying $130 million in share redemptions to drought-stricken suppliers last season without TAF, says chairman John Wilson

Speaking at the co-op’s annual meeting in Eden-dale last week Wilson praised TAF, saying it is working well for the co-op.

He says the drought last summer, the worst in 70 years, hit the co-op and its farmers hard, “but it would have been a lot tougher without our current capital structure”.

“The co-op would have been facing the prospect of paying out around $130 million to redeem shares. Instead, our permanent stable capital structure meant we could support farmers with a lift in the advance rate.”

However, the higher

advance rate to farmers forced the co-op to borrow more money. Fonterra fin-ished 2012-13 with a debt to debt plus equity ratio of 39.6%.

Wilson says this reflected the strong bal-ance sheet. But he adds the co-op would have achieved lower debt ratio (36%) “if [it] had not made the right decision to support farm-ers through the drought’s immediate impact by rais-ing the advance rate”.

The strong balance sheet enabled spending

$925m on acquisitions, joint ventures and com-pleting a new processing site at Darfield, Canter-bury.

Wilson also touched on the board’s dividend policy – maintaining a con-sistent dividend stream in the normal course of events. This is expected to be 65-75% of adjusted net profit after tax over time – important considering the volatility in global dairy markets.

“Fonterra has the bal-ance sheet and cashflow

strength to ‘look through’ the volatility in the short term, and ensure we are able to make judgements to protect the business in the longer term. At the same time, the board will always have the ultimate discretion as to the divi-dend when it sets it at the half and full year.”

He alluded to the risk of looking at one point in time. Last year NZ Milk Products earnings were $422m for the first half and just $72m in the second half. This difference is over that one date – the half year at the end of February, he says.

SUDESH KISSUN

[email protected]

TAF HAS also enabled Fonterra to execute transac-tions to support its volume and value strategy, says John Wilson.

The Fonterra shareholders market brought greater flexibility, farmers being able to buy and sell shares throughout the year, he says.

He notes that $24 million, equivalent to at least a third of all trading in November, was done in the farmers’ market.

Volume and value strategy

John Wilson

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Page 8: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

8 NEWS

Attracting ag prospects needs graftA farm experience trip to Manawatu last week offered a taste of farming life to 30 secondary school science teachers and careers advisors from Wellington. The project was conceived and run by Rural News reporter Peter Burke, seeking to raise awareness of career opportunities for young people in the primary sector.

FORMER LANDCORP chief and Massey University pro-chancellor Chris Kelly says more young people could be encouraged to make careers in agricul-ture if education on the industry and its opportunities were better coordi-nated. Kelly was a keynote commenta-tor on the trip.

The group toured Hew Dalrymple’s farm at Bulls, then saw the food tech-nology plant and experienced the work at Number Four Dairy farm at Massey University.

Lynette Wharfe, an expert in RMA issues, also commentated during the bus journey. The day ended with Pri-mary Industry Minister Nathan Guy hosting the group at Parliament.

Kelly says he’s encouraged by Beef + Lamb NZ and DairyNZ pool-ing resources to help fund the project. But he sees a need for more coordina-

tion and money to meet the demand for more qualified young people in the primary sector to increase productivity and profitability.

“There is no question that we need more people in ag. There is much more science in agriculture now with the emphasis on such things as precision agriculture, measurement of individ-ual animals flocks and herds with EID and effluent and environmental mon-itoring.”

Kelly says education on the indus-try must begin early – even at primary school. And educating parents about agriculture is critical, because many of them see it as dirty, low paid jobs and offering little future – totally incorrect, he says. Compounding this misconcep-tion is that only 10% of New Zealanders live in rural areas.

“It starts from an early age because

many parents don’t encourage their children to take an ag course and these children aren’t exposed to agriculture at an early age; they are almost trained not to think of agriculture.

“They then move on to sec-ondary schools where many careers advisors are unaware of the opportunities that can arise. That in turn is reflected at the tertiary – particularly university – level where we are not getting enough stu-dents into agriculture.

“We’re getting lots of students into fine arts and producing lots of lawyers and accountants, but nearly not enough ag students.”

Partly this is a funding issue: it’s expensive to train an ag student, much more cost-effective for a university to train a business graduate.

He’s also worried about some of the myths voiced about agriculture. “Frankly it worries me that people in central Auckland who have never been on a farm have this wrong perception that dairying is ruining New Zealand, ruining tourism our lakes and our rivers and killing our fish.

“These are extreme statements and mostly not true. Unfortunately percep-tion is reality and we have to turn that

perception around and make the public understand that most farmers are envi-ronmentally conscious and look after their farms because they want to pass them on to future generations.”

Kelly says it was interesting to see the teachers on the trip “blown away” by the technology they saw at Hew Dal-rymple’s farm and at Massey. The trip was for some of the teachers their first experience of a dairy shed.

Chris Kelly says education of the career opportunities in the agri-cultural sector must begin early – even at primary school.

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Page 9: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

NEWS 9Teachers awoken to farming opportunities

Undergrads envision doors openingA HIGHLIGHT of the day was talks by five young people now making successful careers in agriculture.

Amanda Murray from Beef + Lamb NZ; Calvin Balls from Ballance AgriNutrients; Shane True, a dairy farm manager; Stacey Hill, a shepherd; and Brigitte Ravera, now finishing her third year in an agricultural science degree course at Lincoln University, explained how they have made a career in agriculture. The teachers praised and applauded them as outstanding role models for farming.

Brigitte Ravera, from Lower Hutt, does not have a farming background, but “during a school visit by a past student, then studying at Lincoln, I learnt about how awesome the university was and the numerous scholar-ships available. She shared her love for agriculture with me and also showed me pictures of her feeding calves and milking. I was pretty much sold.

“Fast forward half a year from my first day of lectures at Lincoln and I knew I had made the right choice. Then fast forward through the next three years and every year has opened new doors with opportunities each more exciting than the last.”

As a little girl Ravera played with a model farm set and her passion for agriculture has never changed.

“Next year, I will be finishing off the fourth and final year of my degree, and an honours year. My honours project/thesis will be examining the nitrate levels and flow rates of cow urine on different feeds and during different activities.”

Her plans include working on a dairy farm and moving into management, possible farm ownership and maybe agricultural politics.

DAWN HALL, a careers advisor at Wel-lington College, had previously visited dairy farms, but found the Manawatu trip especially valuable in giving teach-ers information to hand on to students and parents.

“One downfall at the moment is that while the industry needs our kids, we haven’t known what areas to put them into and where to get more detailed information,” she told Rural News.

“The feedback from my colleagues is that we need to do this type of trip with greater frequency and bring our stu-dents out as well, and start feeding our students into the universities rather than those from overseas.”

She and her colleagues now recognise the huge career opportunities in agricul-ture, she says. They hadn’t previously understood.

“It’s also hard for parents: they need to understand there are clear opportuni-ties out there for their children.

“Having something we can hand out is useful, such as a snapshot of careers and what they involve, or a day in the life of these people and what they are doing after

graduating. Then we can sit down with par-ents and show them what’s involved and where it may take the students.”

Though Hall had previously seen dairy farms she had no idea of the sort of technol-ogy involved. “It was a great eye opener.”

Farmer Hew Dalrymple impresses teachers by starting irrigators with his iPhone!

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Page 11: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

NEWS 11

Rural home support needs more – RWNZTHE HOME support sector for rural people will be in crisis next year, says Rural Women’s new pres-ident Wendy McGowan, who is a nurse.

It will be a focus of Rural Women’s advocacy role next year because she believes any more increases in the minimum wage will cause a collapse in home support services in rural areas.

None of the district health boards, in their funding of rural home sup-port, has passed on the three most recent min-imum wage increases, McGowan told Rural News.

The home support service provides house-work and personal care to people in their homes including elderly, ACC cases and people with temporary medical issues, for instance major surgery.

“The greatest threat will be the collapse of the rural services,” says McGowan. “It will happen before it happens in [towns]. I don’t know if New Zealand has the capa-bility to care for these people within our hospi-tals or rest homes.

“Rural Women will advocate strongly for their industry to be given their

own funding rather than it coming through district health boards. The boards aren’t passing on some of the funding.”

She says all the workers are on the minimum wage and some are above, but a further increase will col-lapse the rural home sup-port industry. Distances travelled by rural workers mean they attend to fewer people in a day than urban workers. “More money has gone into the sector but this has only kept up with the increase in volume as the population ages,” she says.

McGowan grew up in Fairlie, Canterbury, where her father had a transport business.

She met a young shep-herd, her husband Rusty, and moved to his 260h family farm in Kaharoa, Bay of Plenty, in 1974.

They farmed sheep and beef, moved on to dairy grazing and now lease it for dairy and sheep and beef. They keep their hand in with 30 sheep and she still helps her husband in the woolshed with the fleeces.

McGowan joined Rural Women at age 20. She served a three-year term as national vice-presi-dent, and has been the national councillor for Bay of Plenty/Coromandel for

the last eight years, taking a special interest in land-use issues, bio-security and food safety.

She was Rotorua Taupo president of Federated Farmers at a time when was the variations were starting to come out on water quality. She was also on a biosecurity taskforce for 18 months and a Rural Women representative on the Consumer Forum.

McGowan says the role of president will be full-time and another 2014 focus will be Rural Wom-en’s involvement in the UN International Year of Family Farming. The organisation is plan-ning nationwide events in March and April to high-light the important role of family farms in provincial economic prosperity.

“We have teamed up with Doug Avery, the 2013 Landcorp Communicator of the Year, to run events next March and April and we are working through the Royal Agricultural Society.

“We have confirmed A&P showground venues in Stratford, Carterton, Motueka, Rangiora and Ashburton. Further events are planned but we are yet to organise events for the top of the north.”

PAM TIPA

[email protected]

New RWNZ president

Wendy McGowan.

@rural_newsfacebook.com/ruralnews

Playing hardballrecall in early August” in certain international markets.

When asked if Fonterra is offering compensation to the seven customers as part of the deals, Spierings replied “that could be”.

The contamination was confined to 38 metric tonnes of WPC80 made at Fonterra’s Hautapu plant near Cambridge and first picked up at a plant in Aus-tralia. It was used to make infant formula, juice and dairy beverages, yoghurt, body building powder and animal stock food.

One of the eight companies affected was Fonterra subsidiary NZAgbiz, which used the WPC to make calf milk replacer. The company recalled several batches of products.

Australian livestock feed company Maxum Inter-national also recalled some products.

Spierings says Fonterra is continuing to supply products to the eight companies under respective contracts.

He told the Fonterra annual meeting that while it was in a good space with customers, winning back the confidence of consumers was the most difficult. A lot of consumers know about the WPC80 issue.

In China about 84% are aware of the WPC80 scare but only 40% know it was a false positive.

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Page 12: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

12 NEWS

Water quality scenario off the mark – FedsMANY PEOPLE are getting wound up about a water quality scenario – as outlined in the recent report by the Parliamentary Commissioner for the Environment (PCE) – that will never come to pass.

So says Andrew Hoggard, Federated Farmers Manawatu/Rangitikei provincial president and a dairy farmer, said to have a good grasp of water quality issues.

Hoggard told Rural News that while he doesn’t dispute the conclusions in the report, which claims if the dairy industry keeps

growing at the present rate there will be problems, this scenario is dubious.

He says the recently announced National Objectives Framework sets limits and outcomes for water quality and farmers themselves are doing a huge amount to reduce nitrogen leaching on their farms.

Also, several research projects are underway, at Massey University and other science institutions, to develop new ways of reducing N leaching in the dairy industry – identified by the PCE as the main cause of the problem

Hoggard says the report is a timely reminder about what could happen if something isn’t done to

mitigate the problem.“But I don’t think the

scenario outlined in the report is going to be hit.

We want to be planning growth in dairy farming in catchments that can handle it, not in ones that

can’t. “I agree that if you add

more and more dairy to a catchment – no matter

if everyone’s on best practice – you will increase the nutrient loading.”

But Hoggard adds such growth will seriously affect farmers who have been farming in those catchments for years, because they will have to cut back production to reduce the N loadings and that will affect their profitability. “So it’s about making sure we don’t stuff things up for those existing guys, just to have more and more conversions.”

Hoggard gets annoyed when he reads about people making a song and dance about the dairy industry doing this and that and polluting the rivers. He says there is

no evil plot by a fictitious character to grow dairying.

“It’s not the industry, or Fonterra or DairyNZ. It’s an individual farmer looking at their farm, looking at their future and where they have been and asking themselves hard questions. It’s about whether they are getting a decent return or finding a better way to go for their family and family farm.”

Hoggard says it’s no different from a person in town seeking out the best job for their and their family’s future.

PCE DR Jan Wright heads her report by saying water quality issues are not the fault of one industry.

But in the next paragraph she sheets home the fact that intensive dairy farming is the main cause of N leaching in waterways, noting “there is a clear link between expanding dairy farming and stress on water quality”.

The report notes the efforts of farmers to mitigate the problem and new laws and guidelines that effect control.

But Wright points to a steep increase in the last 20 years of nitrogen fertiliser sales and says that along with greater

fertiliser application is the biggest issue – urine from cows. More fertiliser has led to more cows being run and Wright assumes dairying will grow.

One interesting observation is that N leaching rates are particularly high when cattle are break-fed on winter forage such as swedes.

Pessimistically Wright concludes “Unfortunately if we continue to see large scale conversion of land to more intensive uses, it is difficult to see how water quality will not continue to decline in the next few years. This is despite the best efforts of many and some undoubted successes.”

Dairy growth fingered

PETER BURKE

[email protected] Andrew Hoggard

@rural_news

facebook.com/ruralnews

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Page 13: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

NEWS 13

Kiwifruit disease still spreadingPSA-V WAS FOUND in northwest Auckland in November through mandatory monitoring, says Kiwifruit Vine Health (KVH).

Chief executive Barry O’Neil says it’s disappointing Psa-V has been found in another region.

However, the disease has been picked up early because growers were carrying out mandatory monitoring. Early detection means a rapid response.

The Psa-V positive test result was on Hort16A vines on a kiwifruit orchard in Kumeu. KVH has established a controlled area within a 10km radius which includes 22 mainly Hayward (green) orchards.

KVH chairman Peter Ombler says many kiwifruit growers are starting to realise they can live with Psa. They can maintain a productive orchard by good management, more-resilient cultivars, protective spray programmes and regular monitoring, he says in his annual report.

However, some

regions have only recently been infected. A focus of KVH over the last 12 months has been putting significant effort into assisting growers outside of Te Puke, the first area to be hit.

Growing kiwifruit in a Psa-V environment will still have challenges “but now seems sustainable in the long term with reasonable location, the right variety mix and good management,” Ombler says.

The National Psa-V Pest Management Plan (NPMP), which came into immediate effect in May, provides the best framework for the best chance of industry recovery, he adds.

“Abandoned and unmanaged orchards are a good example of why growers supported the NPMP. They pose a significant risk of establishing and transferring Psa to neighbouring orchards and other regions.”

To date, KVH has reduced the number of abandoned and unmanaged orchards from 63 to 28. We’ve successfully returned two orchards back to productivity and 16 have been removed.”

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PAM TIPA

[email protected]

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Page 15: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

NEWS 15

Concerns raised over regional biosecurity

REGIONAL COUNCILS should step up to get involved in keeping pests out of their regions, and checks between the North and South Island may be necessary, says Horticul-ture New Zealand’s chief executive Peter Silcock.

Silcock has criticised our ability to control pest and disease movement between different regions as “woeful”. We need to do a much better job in this area of biosecurity instead of “collectively crossing our fingers”, he says.

“We might want to put more checking between the North and South Island if we are wor-ried about a pest spread-ing from one island to another,” Silcock told Rural News.

“We see a role for regional councils to get more involved in some of the pests they haven’t got. Currently what regional councils tend to do in their own biosecurity work and pest management is focus on the pests they already have. That is important work… but they should also look at what they

haven’t got and what they can do to make sure they don’t get it.”

The Ministry for Pri-mary Industries, indus-try and the regions need to work together with other interested parties, he says. The power of community should not be underesti-mated, but it should not be the only initiative.

An example of the wrong approach is the let-tuce aphid problem a few years ago. “When that aphid arrived in Christ-church we didn’t do any-thing at all to prevent the spread to other parts of the country. We throw up our hands and say ‘it’s here, it’s pretty hard to control so we’ve just got to live with it’.

“We haven’t had in New Zealand a very good history of even trying to manage those pests. I am not saying it is easy to manage the spread of pests between regions but we’ve got to do a much better job.”

Highlighting the issue for Silcock is the need to stop the spread of the Great White Butter-fly from Nelson to other regions. “It has impacts not only on crops like

broccoli and cabbage but on commercially grown fodder crops for animals. We also have some native species of brassica that it could impact.

“This is quite an impor-tant challenge to brassi-cas and the Department of Conservation is leading the charge to try to erad-icate this from Nelson. DoC has reminded holi-daymakers to wash down cars and tents because there may be eggs [that get] inadvertently spread to other regions.

“That is a really good call but it also highlights just where things are at in terms of regional bios-ecurity. We haven’t got any rules in place to help manage that.”

The only measure at hand is to appeal to the public, which is good. “But we also need to think about other measures which might be a bit stron-ger. There should be some movement controls on products that would be host to this pest or organ-ism.” It isn’t just about the cabbage butterfly but that is one example, Sil-cock says.

Kiwifruit disease Psa is a good example of at

PAM TIPA

[email protected]

least having a plan to stop the spread of an organ-ism from one region to another. “It hasn’t worked in that case, but at least we have been trying to put in place mechanisms to manage it.”

HortNZ chief executive Peter

Silcock.

New x-ray detectors make it harder for pestsHORTICULTURE NEW ZEALAND has welcomed the purchase of 12 new-technology x-ray units by the Ministry for Primary Industries, bought to screen passenger luggage and mail arriving at airports.

Technology is an important aspect of biosecurity, says HortNZ chief exec-utive Peter Silcock.

“With increasing numbers of people

and amounts of goods on our borders we’ve got to employ really good tech-nology. My understanding is these new x-ray machines are far superior to their older counterparts and they give a lot more clarity and accuracy in the detec-tion of biosecurity threats.

“So it is good that the Government is continuing to invest in technology at our border.”

Page 16: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

16 NEWS

Feds’ head signals debt warning

FARM DEBT could next year hike up another $1.5 billion – on top of the pres-ent $52 billion – if interest

rates rise as predicted by the Reserve Bank.

That warning from Fed-erated Farmers national president Bruce Wills fol-lows its recent national council meeting in Wel-

lington, where the quan-tum of rural debt was a hot discussion topic.

Among the guest speak-ers (behind closed doors) was the Reserve Bank gov-ernor Graeme Wheeler

and the deputy governor Dr John McDermott.

Wills says rural debt is very high and recent DairyNZ figures show the ‘average’ debt of every dairy farmer is $3 million:

some farmers have huge debt and other much less. The Reserve Bank

PETER BURKE

[email protected]

predicts interest rates will rise 2-3% next year.

“It’s looking like a good season and I encourage farmers to be prudent and ensure their debt levels are sustainable in the long term. With the good payout for dairy farmers, it makes a lot of sense to bring balance sheets down to something that gets farmers through the ups and downs.”

Wills says while he doesn’t have the latest debt figures for sheep and beef farmers, he believes their debt is about one fifth that of dairy farmers.

“About 80-90% of farm-ers have entirely respon-sible and sustainable debt levels. But as always you get a bunch of people – it’s no different from hous-ing – who load themselves with huge amounts of debt then wonder what’s hit them when the payout drops or interest rates go up. My message is to make

hay while the sun shines and get the balance sheets in order.”

Wills agrees with Dr McDermott that one of New Zealand’s biggest problems is that people don’t save money. Their desire to borrow is so great that the money has to be borrowed from Australian banks.

“We know if we borrow from overseas it increases the demand for the kiwi dollar because we are busy swapping curren-cies. Effectively the more money we borrow from overseas the higher the currency goes.

“The predominant reason for our overvalued currency is the borrow-ing of enormous amounts of money – be it for farm-ing, housing or commer-cial. We need to save more and take pressure off the currency.”

Bruce Wills

Question on PGPLABOUR’S PRIMARY industries spokesman Damien O’Connor has again questioned the value of the Gov-ernment’s Primary Growth Partnership (PGP) scheme.

O’Connor claims the PGP, currently under inves-tigation by the auditor-general, is failing to stem the decline of the red meat sector and must be reviewed by the Government.

“In spite of the Government spending half a million dollars on a red meat strategy in 2011 and now having committed over $350 million dollars of taxpayer and farmer money in PGP projects, dry stock numbers are declining, resulting in a huge impact on rural New Zea-land.

“The release of the Parliamentary Commissioner for the Environment’s report is further evidence of the dangers of the large scale conversion of dry stock to dairy farming in some regions.”

O’Connor says Primary Industries Minister Nathan Guy refuses to acknowledge the current state of the red meat sector and the urgent need for direction and lead-ership.

“A further blow to rural communities is meat com-panies now exporting meat carcases for processing. Coupled with this is the recent loss announced by Silver Farms, off a $2 billion dollar turnover, which completes a picture of terminal decline for too many in the red meat sector.”

O’Connor claims the National Government’s attempt to save the meat sector is failing.

@rural_news

facebook.com/ruralnews

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Page 17: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

NEWS 17

Rapid build-up of dairy debt expectedRABOBANK’S BEN Rus-sell says the ingredients are there for a more rapid build-up of debt in the dairy sector.

They include very good dairy prices globally, a likely record payout this year, high farmer confi-dence and a banking sector in strong shape and open for business.

“What we have seen is some price growth in rural land, particularly dairy farms, and we are seeing the ingredients that have in the past led to rapid debt build-up. At the moment, rural debt is growing at about 5% annu-alised and that is close to an acceptable level.

“The Reserve Bank will be reasonably relaxed if it

stays at that 5% or below growth rate. But in the mid-2000s we saw debt growing at something like 15-20% per annum and if it shows any signs of going back to those levels we can expect the Reserve Bank to take action.”

Russell says while the issue of farm equity is important, it’s just one part of the puzzle. More important are profitabil-ity and cashflow, but the bank wants to see a combi-nation of a track record of practical farming, profit-ability and equity.

“I would agree with Federated Farmers’ view that by and large 40% equity is certainly at the lower end. There are good farmers who are operat-

ing at less than 40% equity, but once you go under 40% there is quite a [close] relationship between low equity and loan defaults.”

Russell says Rabo-bank believes the long term outlook for dairy-ing is very positive, based on the bank’s analysis of strong long term demand for dairy products. Good demand for dairy prod-ucts will endure during the next generation. But there will be plenty of short term volatility.

“Rabobank’s view is that global dairy com-modity prices will ease in 2014-15 as more supply comes on line. For exam-ple, in New Zealand we are having a great year and production will be up.

“We also think the northern hemisphere will be ramping up produc-tion in 2014, because they have low grain prices and high commodity prices. So we think there will be an easing of commodity prices next year.”

Russell says if the Reserve Bank raises inter-est rates next year and the milksolids payout drops as

predicted by $1.50, dairy farmers will be affected.

“Our advice to farm-ers is use slightly more conservative budget fig-ures for both dairy prices and interest rates over the next couple of years. We think it unlikely the good growing condi-tions, record prices and low interest rates will be repeated next season.”

Ben Russell

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“This acquisition strengthens Fonterra’s position as a leader in

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Page 18: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

18 NEWS

Govt beefs-up border biosecurity

Primary Industries Minister Nathan Guy observes a quar-antine inspector at work at Auckland Airport.

UNDERSTANDING THE Chinese culture better is part of an across-Govern-ment initiative – and one outcome will be better biosecurity, says Minis-ter for Primary Industries (MPI) Nathan Guy.

“A lot of the Chinese

culture is about giving of food,” Guy told Rural News at the unveiling of new air-port x-ray machines to screen luggage.

“We need to under-stand that and we’ve worked across the whole of government – not only the airport but tourism, customs, MPI and Mfat – to understand the Chinese

culture. We have done a lot already and we’re doing a lot more.”

Guy says they want to encourage more voluntary declarations of biosecurity risk goods at Auckland air-port by Chinese passport holders.

“China is now New Zealand’s second-larg-est source of air passenger

arrivals. Research shows visitors from China tend to be poorly informed about New Zealand’s bios-ecurity laws and, there-fore, are less likely to declare or dispose of risk items upon arrival.”

Initiatives to improve compliance include use of translators and electronic translating tools at risk

assessment and search areas, and self-search sta-tions where passengers check their own luggage before official biosecurity checks.

“We are getting tougher and tougher in this space and we’ve got to educate not only these tourists but all other tour-ists. That’s why when you

PAM TIPA

[email protected]

come into New Zealand there are audio-visuals, different signage and post-ers awareness making sure people realise when they come to New Zealand and they don’t declare they will get caught and incur a $400 instant fine.”

The 12 new x-ray machines MPI has bought for $1 million are “really modern technology”. “It is going to beef up our biosecurity system big-time.” Five machines will be located in Auckland and the others spread around the country.”

Guy also presented official appointment cer-tificates to 32 new quar-antine inspectors and five new detector dog han-dlers. Sixteen will work in Auckland, eight will go to Wellington and Christ-church. Three new dog teams (handler and dog) will go to Auckland, and one will go to each of Wel-lington and Queenstown. “The new frontline recruits will strengthen New Zealand’s biosecu-

rity frontline before the busy summer peak season. Their appointment means close to 100 new quar-antine inspectors have joined MPI in the last 14 months,” says Guy. “Staff numbers will be further bolstered by MPI’s plans

to recruit a further 24 new quarantine inspectors in March next year.”

Guy says the new staff and x-ray units were not in response to criticism.

“During the global financial crisis our trade volume dropped away; we are coming through that now. We are [dealing with] about 200 countries’ $90 billion a year of imports and exports so we rely heavily on our world-lead-ing biosecurity system. That’s why these x-ray machines and focusing on the front line with new people is going to be really important. These will be a lot more efficient; they will pick up a lot more inside bags and suitcases.”

“The new frontline recruits will strengthen New Zealand’s biosecurity frontline before the busy summer peak season. Their appointment means close to 100 new quarantine inspectors have joined MPI in the last 14 months.”

– Nathan Guy

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Page 19: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

NEWS 19

Has dairy fouled farming’s nest?FEDERATED FARMERS national president says the “pendulum may have swung too far in terms of intensive dairying”, and its long-term impact on the environment needed look-ing at.

Bruce Wills says farm-ers in some regions may not in future be able to carry on farming as they are now because of their farms’ impact on the envi-ronment.

He told Rural News at Feds’ recent national council meeting that water is the number-one issue above all others facing his organisation. Water and environmental issues are complex due mainly to massive land-use change – especially dairy conver-sions – during the past ten

to fifteen years. He has no concerns

about the rise of dairying from an economic stand-point, saying the market side “is working great”.

“But the big ‘but’ is that we are now seeing, and the science is telling us, that in areas where we have inten-sive dairying – especially on lighter soils – we have real issues with defuse nitrogen working its way into waterways.

“The Parliamentary Commissioner for the Environment, in her latest report on water quality, highlights the issue of land use change.”

Wills says there are ‘hot spots’ where, despite the best efforts of farmers to adopt good management practices, to fence stock from waterways and do riparian planting, the sci-ence is saying ‘no’. Farm-

ers are doing their best to control effluent better, but he concedes farming must change in some regions to ensure sustainability for generations to come.

“This is the conundrum organisations like Feder-ated Farmers and many others are grappling with at the moment. I spend most of my day trying to find the right balance between farming which pays the bills to such a large degree in many areas of the country, and protec-tion of the environment.”

Wills says the pressure from the Government to grow agriculture from a $30 billion export indus-try to a $60 billion sector by 2025 is an exciting chal-lenge. But doing this and reducing agriculture’s environmental footprint at the same time is an equally big challenge.

PETER BURKE

[email protected]

Bruce Wills says farming must change

in some regions to ensure future sustainability.

Onion strategy unveiledA STRATEGY to increase the profitabil-ity of New Zealand’s onion industry has been unveiled by industry body Onions New Zealand (ONZ).

ONZ chair Michael Ahern says the onion industry grew exports by 17% in the current season – compared to last year – and contributes around $90 mil-lion in export receipts.

“It is a quiet achiever in the sector. Having secured an independent levy in the last 12 months, good progress is being made across a lot of areas not least devel-opment of the industry strategy.”

Most of the New Zealand onion crop is destined for export markets. ONZ says

the focus of export markets has been shifting from Europe and towards Asia over the past decade and the industry desperately needs to create more options.

There are also challenges arising in the current economic environment and the imperative to use resources sustainably. It says the answer to increasing profit-ability lies in four strategic themes.

The first of these is developing export markets to create more options and reduce reliance on a few historical mar-kets. It also means increasing the sus-tainable yield achieved by growers, as well as driving productivity improve-ments across the supply chain.

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Page 20: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

20 NEWS

How do you like your eggs – more expensive?WHEN IT COMES to egg production, there’s a scrambled mix of compet-ing pressures, says Farmer Brown’s general manager

Hamish Sutherland.There’s a push to let

chickens out of cages to enhance New Zealand’s clean, green image mainly for the dairy industry, says Sutherland. But some Asian egg customers with

bird flu on their doorstep view any free range sug-gestions as “nuts”.

Sutherland believes the egg industry will even-tually be forced to go fully free range but he is not sure regulators have

PAM TIPA

[email protected]

thought through the food safety implications.

Australia already has an outbreak of bird flu in New South Wales; although it’s only in the birds at this stage, the disease can migrate to humans. The bird flu started on a free range farm and spread to two neighbouring caged farms.

Sutherland was speak-ing at the Auckland launch of Farmer Brown’s new Colony eggs, claiming it is the first producer in New Zealand to offer this wel-fare-friendly and afford-able egg.

Colonies provide 750cm2 cm per bird, like an open-plan home; the hens have room to move, nest, scratch, perch and interact.

The company is out to get ahead of the game as legislation requires con-ventional cages to be phased out by the end of 2022, to be replaced by colony, barn or free range housing. Sutherland says Farmer Brown Colony eggs meet welfare stan-dard while maintaining the affordability of eggs for New Zealand custom-ers.

A pack of 10 eggs will cost the same as a dozen caged eggs. He says eggs are a staple food and key

source of protein for many New Zealand-ers and need to remain affordable. Farmer Brown also launched a free range option for the premium customer.

Farmer Brown owns 90% of its invested capi-tal and controls 100% of it process.

“People talk about pad-dock to plate, but we start way before the paddock,” he says. They start with genetics and end with paying “millions of dol-lars” for people to put the eggs on the shelves and rotate them. In com-parison, Sutherland says, Silver Fern farms is doing some ‘spectacular’ con-sumer stuff, “but they don’t know many lambs they will have in for the Christmas kill and what weight they will be. We’re actually genetics-to-egg cup.”

But controlling the whole process is capital intensive and and not everything is about

welfare. When they speak to Singaporean authorities about free range, the response is “are you guys nuts?” and “have you got a death wish?”

With bird flu in Malaysia and Thailand, the only free range they are interested in has a roof and walls. Premium customers may take organic eggs but they are from caged birds fed organic feed.

For Papua New Guinea, any eggs from New Zea-land, even after two weeks in transit, are welcomed in comparison to the health hazards of local eggs. But one US food company will take only free range. Woolworths Australia is moving the same way by 2018. “But with free range farming comes risks,” says Sutherland. “When you’ve got heat and humidity,

migratory birds – you’ve got a melting pot of poten-tial disease.”

When governments think about policy they need to take into account the additional risks. When new codes were brought into the UK and Europe many family farms did not want the debt; they sold their farms for lifestyle blocks and retired.

But he knows major changes are coming. “We embrace that; we don’t necessarily agree with the timeframe but we under-stand that things are moving forward.”

Farmer Brown exports $10m annually to Singa-pore, Hong Kong, Papua New Guinea, Australia, Tahiti, New Caledonia and Rarotonga and the Cook Islands.

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Page 21: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

NEWS 21

Sacred cow calls economic tune

SOME SMALL rural com-munities now depend largely on the cow for eco-nomic survival.

That’s ONE conclusion reached by consultants Nimmo Bell about the economic effects of Hori-zons Regional Council’s One Plan. The study, com-missioned by DairyNZ and Horizons (HRC), shows small, rural communities are now economically vul-nerable to any reduction in the amount of milk pro-duced in their regions.

The study looked at three scenarios for reduc-ing nitrogen leaching and its attendant risk of envi-ronmental damage, while retaining economic viabil-ity in rural areas.

The first scenario involved implementing One Plan as it was handed down by the Environment Court, the study show-ing that farmers and their communities would in

some cases be economi-cally devastated.

The second scenario had farmers to reducing their N loading by reduc-ing stock numbers. This, says DairyNZ’s Dr Rick Pridmore, showed that while farmers may survive, their communities might not.

“So it’s all about the volume of milk. The important thing the study showed was that the volume of milk is as important as the profit-ability of the farm when you look at communi-ties. Farmers could hunker down and meet the N tar-gets to some extent. But… that community would have lost a lot of jobs with the lower volume of milk. That’s why if you do a sec-tion 32 analysis or an eco-nomic assessment that looks only at farm profit-ability, you can make a big mistake.”

Pridmore points out that when a farmer grows milk volume he buys

PETER BURKE

[email protected]

in more feed and more labour, and he has more money which he is spend-ing in his community.

“When you look at all those multipliers, the community does rather well out of higher milk volumes, but if people want to go backwards and reduce the footprint it has

big ramifications in com-munities like Dannevirke.”

The study shows that by holding production at present levels there are ways to take out nitrogen and improve the quality of water in rivers, Pridmore says.

“We found a solution that allowed the econ-

omy to stay ok, farmers to do ok and the river to be improved: that’s what that third scenario shows and Horizons has agreed to implement it.”

The council and farm-ers are now building a healthy relationship.

“The council has taken a step forward which says

they value the com-munity, they value farming and they value the river so we have found a solution that does all three.”

Rick Pridmore

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Page 22: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

22 NEWSInfant formula industry under pressure

WORKLOAD AND mem-bership are stepping up for the Infant Nutri-tion Council with the big growth of the infant for-mula industry in the last year, says chief executive Jan Carey.

The Fonterra botulism

scare has created more work and the scope of the council’s work is widen-ing into market and food safety reputation issues. The council represents manufacturers and mar-keters on both sides of the Tasman but most mem-bership is in New Zealand. Membership includes all the big players and

an increasing number of smaller ones.

Carey told Rural News the Infant Nutrition Coun-cil in its advocacy role has had strong relationships with government organ-isations but it hasn’t had a high public profile. It is aiming to raise that pro-file and made a presenta-tion recently at the Global

Food Safety Forum in Dunedin attended by Chi-nese and American del-egates.

“Letting the rest of the world know we have a strong and influential industry association in New Zealand is impor-tant,” says Carey.

“When the council was set up it represented the

interests of the infant for-mula industry and to sup-port the public health role in the promotion and protection of breastfeed-ing and in infant formula being the only suitable replacement. There’s a WHO code of purpose to our organisation.

“But the formula indus-try has changed in New

PAM TIPA

[email protected]

Zealand and so the indus-try association needs to change with it. There’s a raft of new issues and of new members.”

Food safety is a much bigger issue for smaller players, and was even before the botulism scare. Supply chain integrity has become a focus and the smaller players’ way of marketing overseas is important for protecting the ‘brand New Zealand.

“We have always developed our relationship with Government and with food regulators … now we are looking at issues of trade and business development with other government bodies such as New Zealand Trade and Enterprise.”

The expanding role and new membership is put-ting pressure on the coun-cil. It needs to train new members in the marketing codes, process the mem-

bership and do company checks on potential mem-bers as it is committed to the code of conduct.

It also has a competi-tive complaints process so any issues with any com-pany or between com-panies are sorted out in-house if possible.

“The members work well together on industry issues; they are a pretty united group. But they are also fierce marketing competitors so they do watch each other and their regulatory and manufacturing processes. That’s how we self-regulate.

“If any of our members was not committed to the code of conduct we have a process of moving them out of the association, because we don’t want to bring any disrepute to our other members.”

We must get it right!

THE BOTULISM false alarm has created more work for the Infant Nutrition Council, says chief executive Jan Carey.

“For the council there’s a concern about the perceived reputational damage and we are working with Government on a number of initiatives to reas-sure the Chinese consumer that New Zealand product is still high quality and safe to use.

“Some of our small members have suffered finan-cial hardship. They’ve had their products sitting on the wharves. That is starting to turn around now but they’ve taken a big hit. We need to regroup and look at the lessons learnt and do everything we can to get that reputation back because it is absolutely deserved and warranted.

“New Zealand has one of the best dairy indus-tries in the world, if not the best, and New Zealanders should be rightly proud of that. It is disappointing this false alarm has had such a big reaction.”

A positive vibe towards New Zealand was perceived among Global Food Safety Forum attendees and “the business door is open,” she says.

The infant formula business in New Zealand aspires to best practice not just because of commer-cial opportunities, but because infant formula provides nutrition to “a very vulnerable part of the population, babies, so it is vital we get it right.”

Chief executive Jan Carey says the Infant Nutrition Council’s role is expanding and membership growing.

@rural_news

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Page 23: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

WORLD 23

Outback camel cullTHE CULLING of 160,000 camels from the world’s largest feral herd has reduced a threat to the Austra-lian outback.

The four-year, A$19 m project has left landscapes, people, industries and cultural assets safer and health-ier. Until then native wildlife, pasture, water resources and cultural heritage were at risk from a growing herd num-bering hundreds of thousands.

About 10,000 camels were imported to Australia between 1860 and 1907 for use as transport ani-mals in desert country and were turned loose when motorised trans-port replaced them in the early 20th century.

Until then teams of about 70 camels travelled 30-40km a day. A large bull camel carried up to 600kg of cargo and smaller animals up to 400kg.

The herd populates the arid inte-rior with 50% in Western Australia, 25% in Northern Territory and 25% in Western Queensland and north-ern South Australia.

Camels fitted with satellite track-ing collars have been found to range across 60,000km2 and to travel 50km in a day.

Jan Ferguson, managing direc-tor of Ninti One, which ran the cull, says it cut the herds in the 18 sites tar-geted, especially the Simpson Desert and Pilbara regions. “As a result… native vegetation, wildlife and water-holes are in better condition over large tracts, the pastoral industry has less camel pressure on its graz-ing lands and Aboriginal communi-ties have seen their cultural heritage protected.”

The population of wild camels is now estimated at 300,000 in 2009 it was about one million. The cull, action by individual landholders

and drought and fire have all had an effect. Live camels are exported to the Middle East and Malaysia, where their meat is prized as a delicacy. Others are exported as breeding stock for Arab camel racing stables.

Ferguson says the huge cull “involved building relationships and collaboration across several state borders, government agencies, the private sector and hundreds of different landholders and Aboriginal communities. It has paid off, and shows what can be achieved when the will, the evidence and the resources are there.”

Ferguson says continued con-trols will be needed to keep the num-bers in check. “Surveys indicate more work is required in the Surveyor Gen-erals Corner region to reduce densi-ties to the long-term goal of less than 0.1 animals per square kilometre – and this will require… aerial and ground culling.”

A large herd of wild camels in the Australian Outback. (Ninti One photo).

ALAN HARMAN

Drought, high dollar burn many Aussie livestock farmersMEAT AND Livestock Australia’s new chair Michele Allan says many Australian farmers have endured a year of hard-ship. A crippling drought in eastern Australia affected production and a strong Australian dollar impacted returns.

Allan, the first woman and non-farmer chair of MLA, told its annual meet-ing last month that volatil-ity is now a fundamental part of the industry’s busi-ness model.

“Who would have pre-dicted in July last year that after two good sea-sons in eastern Australia and confidence returning by year’s end, the largest part of the country, espe-cially in the north, would be facing weather issues

after going through a blis-tering hot and dry spring and summer.

“The result was a large number of livestock graz-ing on rapidly deteriorat-ing pasture and a huge number of cattle being turned off in the first half of 2013.

“The knock-off effect of this dramatic and disas-trous fall in cattle prices in many categories and parts of the country was understandably missed by most of the forecasters 12 months earlier. These falls have far-reaching con-sequences even in this part of the world where, although the season has been much better, trade-weighted cattle prices have been 8% below their five year average.”

Allan says few would have also tipped the Aus-tralian dollar to be at $US1.05 for most of the year. This placed added pressure on exporters, dampening demand and squeezing margins. And while prices of farming inputs like fuel and fertil-iser were expected to ease, they remained the same or even increased, she notes.

However, some “unpre-dictable occurrences” during 2012-13 have been positive for the industry: higher sheep prices and emerging markets.

Sheep prices, despite a production surge of 19%, remained higher than the previous year.

Allan also touched on the shift in the global mar-ketplace for Australian

producers during the year.“It would have been

a brave individual in July 2012 to fearlessly tip the sheer size of the dramatic breakout of several emerg-ing markets to become the major export destina-tions for Australian beef in 2012-13.

“Few could have fore-seen the combination of factors, particularly the restrictions placed on the competitive product, the local suppliers that led to a ten-fold increase in beef shipped to China during the year and the six-fold increase in the value returned.”

Allan noted that she has stepped into the role “at a time when the indus-try is under great pres-sure”. – Sudesh Kissun

Registered pursuant to the ACVM Act 1997, A9402 and A9984. See www.foodsafety.govt.nz for registration conditions.

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Page 24: Rural News 3 Dec 2013

MARKET SNAPSHOT LAMB MARKET TRENDSBEEF MARKET TRENDS

RURAL NEWS // DECEMBER 3, 2013

www.nait.co.nz | [email protected] | 0800 624 843

Received cattle from a sale yard lately?You must confirm with NAIT that the animals arrived at your property. You can confirm animal movements:

• onlineintheNAITsystem• throughyourNAITaccreditedinformationprovider• byreplyingtotheemailfromNAITaboutthemovement,or• bycallingNAITon0800624843.

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

BEEF PRICES

c/kgCWT Change Last Week

2 Wks Ago

Last Year

NI P2 Steer - 300kg n/c 4.65 4.65 4.25M2 Bull - 300kg n/c 4.55 4.55 4.32P2 Cow - 230kg n/c 3.50 3.50 3.50M Cow - 200kg n/c 3.50 3.50 3.40

Local Trade - 230kg n/c 4.45 4.45 4.17SI P2 Steer - 300kg n/c 4.32 4.32 4.00

M2 Bull - 300kg n/c 4.18 4.18 4.00P2 Cow - 230kg n/c 3.15 3.15 3.18M Cow - 200kg n/c 2.95 2.95 2.95

Local Trade - 230kg n/c 4.35 4.35 4.18

NZ Slaughter Total Monthly Kill

1000s Change Sep Aug Last Year 5yr Ave

Cattle NI +16% 64,667 55,610 62,317 64,684 Cattle SI +19% 20,905 17,554 21,477 21,080 Cattle NZ +17% 85,572 73,164 83,794 85,763 Bull NI +28% 5,766 4,503 4,970 4,961 Bull SI +40% 879 629 687 1,135 Str NI +20% 19,428 16,202 15,570 17,111 Str SI +5% 8,438 8,065 10,260 9,552 Cows NI +7% 18,561 17,420 20,543 20,666 Cows SI +47% 4,987 3,386 3,265 3,358

Export Market DemandChange Last Week 2 Wks

Ago Last Year 5yr Ave

95CL US$/lb n/c 2.07 2.07 2.22 1.73NZ$/kg +4 5.55 5.51 6.00 5.37

Procurement IndicatorChange 2Wks Ago 3 Wks

Ago Last Year 5yr Ave

% Returned NI -1% 82.0% 82.6% 72.04% 73.2%% Returned SI -0% 75.3% 75.3% 66.7% 67.5%

LAMB PRICES

c/kgCWTChange Last

Week2 Wks

AgoLast Year

NI Lamb YM - 13.5kg -10 5.86 5.96 5.36PM - 16.0kg -10 5.88 5.98 5.38PX - 19.0kg -10 5.90 6.00 5.40PH - 22.0kg -10 5.91 6.01 5.41

Mutton MX1 - 21kg n/c 3.60 3.60 3.20SI Lamb YM - 13.5kg -10 5.88 5.98 5.11

PM - 16.0kg -10 5.88 5.98 5.13PX - 19.0kg -10 5.88 5.98 5.15PH - 22.0kg -10 5.88 5.98 5.16

Mutton MX1 - 21kg n/c 3.38 3.38 2.85

NZ Slaughter Total Monthly Kill

1000s Change Sep Aug Last Year 5yr Ave

Lamb NI +15% 604 524 469 529Lamb SI +46% 326 223 564 282Lamb NZ +24% 930 748 733 809Mutton NZ -58% 44 106 57 78

Export Market DemandChange Last

Week2 Wks

Ago Last Year 5yr Ave

UK Leg £/lb n/c 1.82 1.82 1.33 1.76NZ$/kg +12 7.90 7.78 5.73 8.55

Procurement IndicatorChange 2Wks

Ago3 Wks

Ago Last Year 5yr Ave

% Returned NI -2% 77.2% 79.7% 98.1% 70.8%% Returned SI -2% 75.9% 77.8% 93.4% 69.1%

Venison PricesChange Last

Week2 Wks

Ago Last Year 5yr Ave

NI Stag - 60kg -10 6.75 6.85 7.10 7.89SI Stag - 60kg -10 7.10 7.20 7.60 8.34

Page 25: Rural News 3 Dec 2013

NEWS PRICE WATCH

RURAL NEWS // DECEMBER 3, 2013

www.nait.co.nz | [email protected] | 0800 624 843

Received cattle from a sale yard lately?You must confirm with NAIT that the animals arrived at your property. You can confirm animal movements:

• onlineintheNAITsystem• throughyourNAITaccreditedinformationprovider• byreplyingtotheemailfromNAITaboutthemovement,or• bycallingNAITon0800624843.

BEEF

Expect downwards pressure in beef schedules

Steady flows of cattle through works are reported, however there is no backlog of bookings and no stream of cattle. In recent weeks the NI has seen some good compeition to procure bull, with prices ranging for the last two weeks between $4.50-$4.60/kg. In the SI last week bulls were earning between $4.00-$4.30/kg. Prices for export steer were also still high last week; in the NI prices ranged between $4.60-$4.65/kg and in the SI they were $4.15-$4.40/kg. With a struggling US market for bull it is unsurprising that several companies have made movements to bring the bull and steer price back. Expect to see the downwards pressure continue from here.

US market for bull meat struggling

The continuing high fatty trim (50CL) price in the US is resulting in a struggling 95CL market and there shows little sign of improvement. 50CL prices are approximately 58% higher than this time last year as a result of the declining fed steer and heifer slaughter. As predictions are for slaughter to continue to decline, supplies of 50CL are going to be more scarce, implying further price rises could be possible. The result of this is that end users want very little to do with 95CL, as it requires too much 50CL for blending, subsequently demand for 85 and 90CL is gaining traction, with 90CL up between 3-5 cents/lb on last week. Imported 95 CL is trading at around US$2.07/lb at present, significantly down on the US$2.19/lb received last year. Reports indicate that NZ should not underestimate the impact that this 50CL price is having and will continue to have on our bull meat. While FOP’s are holding up at present due to procurement pressure, more consistent slaughter rates are established, meat companies will be looking to pull that bull price back very quickly in order to better manage margins.

LAMB

Downwards pressure appears on lamb prices

Export lamb prices are on the decline in both islands. In the NI, $6.00/kg gross is about where the market was last week, and the SI was just behind on $5.90/kg gross. There is some expectation of the bottom range sitting around $5.30-$5.50/kg, which is 50-70 c/kg up on last year and similar to the 5 year average. Mutton has been earning good money in recent weeks as the demand from China for 6 way cuts and carcasses does not dampen. In the NI $3.60/kg gross is where the market is at and $3.40/kg in the SI.

Store lamb numbers lift in both islands

Numbers of store lambs traded is lifting in both islands; the beginning of December is likely to see the flow really begin. In the North, trade in paddock for 28kg male lambs was around $3.00/kg last week, and $2.85/kg for a ewe lamb. In the South prices for 28kg types are between $2.55-$2.60/kg. Prices in the SI sale yards are similar to what is quoted in paddock. In the North, however, prices at auction remain firm, and last week saw a range of $3.17 - $3.35/kg for 28kg male lambs and a range of $3.22-$3.60/kg for 24-25kg types. $3.00/kg was about the mark for ewe or mixed sex lambs at the sales.

DAIRY

Whole milk powder prices steady

Prices of dairy products rose in the latest GlobalDairyTrade auction, following two auctions of declining prices. The volume sold rose to a two-month high to 52,297 tonnes. The average price for whole milk powder, the biggest product by volume, was unchanged at US$4,870/tonnes, the lowest since early July, however at seasonally high output, this is considered a good result. Continued good export demand in the world market, especially from China, is helping to clear whole milk powder offerings. Cheddar and skim milk powder both rose slightly. Reports indicate that NZ production is running abour 5-4% higher season to date, June through October.

WOOL PRICE WATCH DAIRY PRICE WATCH

Indicators in NZ$ Change 21-Nov 14-Nov Last Year Indicators in NZ$/T Change Last 2

WksPrev. 2

WksLast Year

Coarse Xbred Indic. -2 5.68 5.70 3.93 Butter +59 4861 4802 3982

Fine Xbred Indicator +5 5.84 5.79 4.68 Skim Milk Powder +8 5590 5582 4136

Lamb Indicator - - - - Whole Milk Powder +58 6015 5957 4136

Mid Micron Indic. - 7.74 - 8.58 Cheddar +6 5468 5462 4840

Overseas Price Indicators Overseas Price Indicators

Indicators in US$/kg Change 21-Nov 14-Nov Last Year Indicators in US$/T Change Last 2

WksPrev. 2

WksLast Year

Coarse Xbred Indicator -3 4.70 4.73 3.22 Butter n/c 4000 4000 3250Fine Xbred Indicator +3 4.83 4.80 3.83 Skim Milk Powder -50 4600 4650 3375Lamb Indicator - - - - Whole Milk Powder -13 4950 4963 3375Mid Micron Indicator - 6.40 - 7.01 Cheddar -50 4500 4550 3950

CURRENCY WATCH

vs. NZ Dollar Last Week 2 Wks Ago 4 Wks Ago Last Year

US dollar 0.823 0.829 0.831 0.816Euro 0.611 0.616 0.603 0.634UK pound 0.508 0.516 0.513 0.512Aus dollar 0.891 0.887 0.866 0.786Japan yen 83.29 83.09 80.90 67.26

Euro

Aug Sep Oct Nov Dec Jan

UK Pound

US Dollar

Page 26: Rural News 3 Dec 2013

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Page 28: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

28 AGRIBUSINESSFRANCIS WOLFGRAMFINANCE MATTERS

Producers price indexInputs

% change from previous quarter

Quarter

2012 2013

Sep Dec Mar Jun Sep

Sheep and beef cattle farming -0.3 -2.0 -3.6 -1.3 0.4

Dairy cattle farming 0.3 -0.1 0.0 -0.7 0.5

Dairy Product Manufacturing -6.8 2.7 4.5 8.6 24.1

Meat product manufacturing 2.4 -0.6 -7.8 1.3 7.5

Horticulture and fruit growing -1.2 -0.3 -0.2 -0.8 -0.4

Cropping and other farming -0.4 -0.9 -2.0 -2.2 0.2

Forestry and logging 1.3 0.1 -0.7 0.2 1.5

Fishing and aquaculture -0.5 0.2 1.2 -0.6 1.9

THE PRODUCER price index (PPI) measures the changes in prices paid and received by the producers of all goods and services in New Zealand. This rep-resents all sectors of our primary, secondary and tertiary industries.

The two charts here isolate the main prod-uct groups that represent the New Zealand agri-cultural industry and the price changes for dairy and meat product manu-facturing. This is to rep-resent the connection between the production of our agricultural goods and the domestic production of the byproducts these create. The rest of the table is made up of price changes in onfarm costs for dairy, sheep and beef, horticul-ture, cropping, forestry and aquaculture.

The PPI measures price changes relevant to the production sector in respect of supply and use – supply being the prices producers get for goods and services (outputs) and use being the cost produc-

ers pay to use goods and services to run their busi-nesses (inputs). This arti-cle aims to outline the changes in the costs to farming and manufactur-ing of some farming prod-ucts so we have focused on the input side of the PPI.

In the September 2013 quarter, the input PPI increased 2.2% following a 0.6 % rise in the June 2013 quarter. The latest rise was the largest since the March 2011 quarter (up 2.2 %). Dairy and meat prod-uct manufacturing contrib-uted to 90% of the overall increase.

The input price index for dairy product manu-facturing made the larg-est individual contribution to the rise in the input PPI. It increased 24% in the September 2013 quar-ter, reflecting the latest milk payout forecast and the higher cost manufac-turers have to pay for raw dairy product. The input PPI increased 3.3% in the year to the September 2013 quarter – again the larg-est since the year to the

December 2011 quarter (up 4.2%).

For the year to the Sep-tember 2013 quarter, the dairy product manufactur-ing industry input index increased a massive 45% and the meat product man-ufacturing input index rose 7.5% in the September 2013 quarter. This was the sec-ond-largest contributor to the rise in the inputs PPI, and the largest quarterly increase since the June 2010 quarter (up 8.5%).

Nearly two-thirds of the overall rise in meat product manufacturing came from higher prices for prime sheep and lamb; prime beef prices con-tributed nearly one-third of the overall increase. Higher meat prices have been influenced by strong demand and lower supply.

For the year to the Sep-tember 2013 quarter, the input price index for meat and meat product manu-facturing showed virtually no change (down 0.1%). This compares with a 4.7% decrease in the year to the September 2012 quarter.

Producers price indexInputs

% change from same quarter of previous year

Quarter

2012 2013

Sep Dec Mar Jun Sep

Sheep and beef cattle farming 6.2 0.8 -6.1 -7.0 -6.4

Dairy cattle farming 4.4 2.4 1.8 -0.5 -0.4

Dairy Product Manufacturing -10.6 -10.3 -4.7 8.6 44.7

Meat product manufacturing -4.7 -8.3 -10.4 -4.8 -0.1

Horticulture and fruit growing 1.4 -0.4 -1.1 -2.5 -1.6

Cropping and other farming 3.1 0.4 -3.7 -5.5 -4.9

Forestry and logging 2.5 4.1 2.8 0.9 1.0

Fishing and aquaculture 2.9 0.7 1.6 0.3 2.7

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Page 29: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

AGRIBUSINESS 29Aussie dairy industry needs consolidation

WCB FACT FILE● Australia’s oldest dairy processor,

making dairy products for 120 years

● Listed on ASX since 2004

● Employs at least 480 people on sites in Allansford, Mount Gambier and Port Melbourne, Victoria

● Top brands include Sungold milk, Warrnambool cheese and Great Ocean Road cheese.

FONTERRA CHAIRMAN John Wilson says the Aus-tralian dairy industry needs to consolidate.

Wilson says the co-op is watching with interest the escalating battle for listed processor Warrnam-bool Cheese and Butter (WCB).

Fonterra’s recent small acquisitions in Australia are about alignment, he says. The co-op paid $A46 m for a 6% stake in Bega Cheese, one of three com-panies tussling for control of WCB, and it bought the Tamar Valley yoghurt busi-ness from liquidators for an undisclosed sum.

Wilson points out that the fragmented domestic dairy business in Austra-lia makes it a tough place to do business. Milk pro-

duction in Australia has dropped from 12b L to 9bL and two major supermar-kets chains, Woolworths and Coles, are dictating prices of dairy products. “Therefore it’s important for the Australian dairy industry to consolidate,” he told Rural News.

Wilson says Fonterra’s stake in Bega is a friendly investment. “We have licensing and packing arrangements with Bega Cheese. The small Tas-manian business Tamar Valley aligns with our sig-nificant yoghurt business in Australia.”

Bega Cheese is offer-ing 1.5 Bega shares plus A$2 cash for each WCB share. With its share price hovering at A$4.70, Bega‘s offer translates to A$9.05/share. This is set against a A$9 a share offer from Australia’s biggest milk

processor Murray Goul-burn and a conditional offer of A$9.20 from Cana-dian dairy giant Saputo. All are counting on increas-ing Asian demand for dairy products.

Saputo says it will lift its takeover offer to A$9.20 per WCB share if it attains a stake in Warrnambool of 50% or more. The WCB board, which is backing Saputo’s offer, last week agreed to the conditional increase.

WCB also revoked its intention to declare a spe-cial dividend of 46c/share and an additional divi-dend of 85c/share, which had been subject to Saputo achieving an interest of 50% and 90% respectively.

If WCB had paid the dividends, they would have been deducted from the A$9.00 that Saputo was offering.

WCB chairman Terry Richardson says Saputo’s amended offer “is now very straightforward and compelling”. ”From today it is an unconditional offer of A$9.00 cash per share

with a further 20 cents cash per share if Saputo achieves an interest in more than 50% of WCB shares.

“If this price increase applies, all sharehold-

ers will receive the ben-efit of the price increase regardless of when they accept. Now that the offer is unconditional, all WCB directors and WCB exec-utives intend to accept the amended Saputo offer without delay.”

WCB shares were last week trading at A$9.26. There is media specula-tion Murray Goulburn may increase its offer a third time in a bid to trump Saputo’s offer.

SUDESH KISSUN

[email protected]

@rural_newsfacebook.com/ruralnews

IN BRIEF

Fonterra chair John Wilson says Australia’s fragmented domestic dairy sector makes it a tough place to do business.

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ZELDA DE VILLIERS, currently managing director of DeLaval NZ, will be the Dairy Women’s Network’s new chief executive.

With at least 20 years’ experi-ence in the international agricultural industry, de Villiers has worked for DeLaval International in Sweden and New Zealand where she has been

based since 2009. She takes up the DWN Hamilton role in January 2014.

Prior to joining DeLaval, de Villiers spent the first 10 years’ of her career in the agricultural finance and rural banking sector in South Africa. She holds a B.AgSc (Hons) and a Diploma in Animal Nursing from Pretoria University.

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Page 30: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

30 AGRIBUSINESS

Getting phone smartTHE SMARTPHONE now has more comput-ing power than your aver-age five-year-old desktop computer.

The challenge many of us face is finding useful things to do with a smart-phone that go beyond tex-ting, calling and taking photos.

There are millions of apps to choose from the Apple, Andriod and Win-dows 8 stores. Many are useless, a few are gems. Many smartphones also include apps and there are a variety of map applica-tions that will do a great job of pinpointing where you are and where you want to go. While these are not as accurate as the GPS in your harvester they are close. Google maps is the standout but Nokia, Bing (Microsoft) and Apple all have good maps.

This brings you to the question of which is the best phone, Apple, Google or Windows? That’s a

bit like asking who your favorite child is. Each has benefits and offers a full solution, however they work best when you stick with one flavor, ie Apple and iCloud, Microsoft Phone and Office 365 and Google and Google Apps.

One big challenges with smartphones is actu-ally having a connection so you can do something smart with them. This is a challenge in many areas of New Zealand, but it is get-ting better and many solu-tions exist that will boost your coverage or give you a Wi-Fi network on your farm.

So how do you get smart with your smart-phone? Here are some of our favourite apps:

Maps and navigation Google, Apple and

Microsoft all have good map apps that allow you to save a map online, then read it while you are offline, or you can down-load a map via Wi-Fi. The

satellite view is also great; though you can’t check the crop with it it’s a cheap way to get an aerial view. Sharing maps is also a good way to direct a con-tractor to exactly where you want him to spread or spray.

Find my friends This is a great way to

see where your friends, family or staff are and track them or be alerted when they move. It’s a bit ‘big brother’ and maybe not ideal for tracking your prize bull but it does give you a view of where every-one is.

iCloud, Dropbox and Skydrive and Drive (Google)

All these cloud-based storage options allow you to store a copy of impor-tant documents, photos, etc on your device first and then synchronise them when you are able to use a faster and cheaper internet connection.

Visit www.ruralnews.co.nz• David Jackson, of Canterbury, studied at Lincoln University and has had several years’ agribusiness experience.

Insurer enjoys high client interaction at field days

FARM INSURER FMG is getting ready to welcome as many 50% of its clients to its sites at the sum-mer’s regional field days, says sponsorship and events manager Michelle Stevens.

The field days environment is relaxed and exhibitor staff get to listen to what matters most to the clients, Stevens says.

Next February and March, the folks in Southland, Northland and Wairarapa will pour into their respective field days – Waimumu, Dargaville and Feilding. Crowds up to 40,000 are not uncommon, FMG says.

“Given this kind of foot traffic it comes as no surprise that a great number of rural service providers exhibit at the Southern, Central Districts and Northland Field Days” says Northland Field Days president Lew Duggan.

“Exhibitors literally have half their clientele walking to and through their site all day. It’s a great way for businesses to connect with a lot of customers in a short time.”

FMG has been attending regional field days for some years, Stevens says. “At FMG we put people at the centre of everything we do; so for us field days are a great opportunity to get out and talk with clients and those thinking of joining us.

“Our philosophy is to give rural New Zealand a better deal, and getting out and meeting clients at events like this helps us achieve that.

“We already run a direct insur-ance model, which sees our mobile teams meet face to face with clients, but events like this help to build on that and on our overall brand aware-ness as well.

“Of course there’s a business side to it all and these events do generate leads for us – which is great. But… we like to think those leads have been generated because people have had an opportunity to sit down and talk to us about their insurance needs, giving them a good initial impres-sion of FMG”, Stevens adds.

Given the popularity of regional field day events, Duggan urges business to book sites early so they get a location which suits their needs.

“While organisers will always work hard to accommodate exhib-itors somewhere on the event grounds,exhibitors need to act quickly to get their preferred site and a listing in the programme and that’s where they can make themselves vis-ible to clients” he says.

Stevens says exhibitors must be prepared for all sorts of conditions. “These are outdoor events and you need to plan for both howling wind and scorching sun.

“Having weather contingencies will not only keep your team safe and happy, but offering shelter, water or sunscreen will also be appreciated by those visiting your site too.”Tel. 09 439 8998www.northlandfielddays.co.nz

YES: These ARE a ‘pistol grip’

NO: These are NOT a ‘pistol grip’

www.police.govt.nz

It means any semi-automatic rifle or shotgun that has a ‘pistol grip’ will become a Military Style Semi-automatic firearm (MSSA).

If you have a MSSA under the new legislation, you must:

• Apply to Police for an endorsement specific to that MSSA if you want to keep it

• Dispose of the grip and replace it with an ‘A-Cat’ compliant stock

• Dispose of the MSSA to an endorsed licence holder with a permit to procure.

IMPORTANT CHANGES TO ARMS ACTCheck your rifle/shotgunFrom 11 December 2013, the

Arms (Military Style Semi-automatic Firearms and Import Controls)

Amendment Act 2012 comes into effect.

For more information go to:

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Rural News

Notice of Election2014 Election of Directors to the Beef + Lamb New

Zealand Ltd BoardBeef + Lamb New Zealand Ltd gives notice that elections will be held in 2014 for the following electoral districts:

Eastern North Island One Position

Southern South Island One Position

Invitation for Candidate NominationsNominations are called for candidates to stand for election for these two electoral districts. Nominations must be on the official form, which can be obtained from the Returning Officer on the Election Hotline on 0508 666 336. Nominations must be received by the Returning Officer by 5 pm on Friday 20th December 2013.

ElectionsElection Day will be Thursday 27th February 2014. Elections will be conducted by postal and internet voting and forms will be posted out in January 2014.

To be eligible to vote, a livestock farmer must, on 30th June 2013, have owned at least 250 sheep, or 50 beef cattle, or 100 dairy cattle.

Livestock farmers owning at least the minimum number of livestock in either of the above two electorates should contact the Election Hotline to check if they are on the electoral roll or to get a voter registration form. To vote, you must be on the Beef + Lamb New Zealand Ltd electoral roll by 5pm on Wednesday 22nd January 2014.

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

Election Hotline: 0508 666 336

Warwick LamppReturning Officer – Beef + Lamb New Zealand Ltd0508 666 336PO Box 3138, Christchurch [email protected]

Notice of Election2014 Election of Directors to the

Beef + Lamb New Zealand Ltd Board

Beef + Lamb New Zealand Ltd gives notice that elections will be held in 2014 for the following electoral districts:

Eastern North Island One Position

Southern South Island One Position

Invitation for Candidate NominationsNominations are called for candidates to stand for election for these two electoral districts. Nominations must be on the official form, which can be obtained from the Returning Officer on the Election Hotline on 0508 666 336. Nominations must be received by the Returning Officer by 5 pm on Friday 20th December 2013.

ElectionsElection Day will be Thursday 27th February 2014. Elections will be conducted by postal and internet voting and forms will be posted out in January 2014.

To be eligible to vote, a livestock farmer must, on 30th June 2013, have owned at least 250 sheep, or 50 beef cattle, or 100 dairy cattle.

Livestock farmers owning at least the minimum number of livestock in either of the above two electorates should contact the Election Hotline to check if they are on the electoral roll or to get a voter registration form. To vote, you must be on the Beef + Lamb New Zealand Ltd electoral roll by 5pm on Wednesday 22nd January 2014.

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

Election Hotline: 0508 666 336

Warwick LamppReturning Officer – Beef + Lamb New Zealand Ltd0508 666 336PO Box 3138, Christchurch [email protected]

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Page 31: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

AGRIBUSINESS 31

Sheep jetter maker on top of worldA MONGOLIAN order for Electrodip portable sheep jetting machines has seen this Te Puke company add the Asian country to its list of export mar-kets.

Company owner Martin Carey is just back from Mongolia where he showed sheep farmers there how to use the jet-ters.

“We have been making these jet-ters for 23 years and already have, estab-lished markets in Australia, UK, Ireland, India, Turkey, Uruguay, France and Romania. This was our first delivery to Mongolia,” Carey told Rural News.

The jetters were shipped to China in June, then railed to the Mongolian cap-ital Ulan Bator. They will help improve the welfare and production of the coun-

try’s sheep farmers and their 15 million flock.

Carey says the appearance of other farm machinery he saw there suggests a major effort to improve farming meth-ods.

Mongolia, six times the land area of New Zealand, sits landlocked ‘on top of the world’. It has three million people. Temperatures there range from 40oC in summer to -40oC in winter.

It is bounded by Russia to the north and China to the east, south and west. These countries have long dominated Mongolia, but after it gained inde-pendence in 1990 and established its own constitution in 1992 it has begun moving to a market economy.

Says Carey, “It has a long way to go, but it has started with massive foreign interest in its mineral wealth.

“Now efforts are being made in the agricultural sector, which is develop-ing fast.”

Carey was approached to supply his machines, with modifications, to suit Mongolia and its animals. “We

have always prided ourselves on mod-ifying our machines to suit customer requests,” he told Rural News.

RAW MEAT, unwrapped and in large pieces in an open topped freezer at a supermarket in Ulan Bator.

The customer on the right wanted a smaller piece so it was cut to size on an adjacent bench. In the interest of hygiene the assistant was wearing plastic gloves.

The same supermarket was offering what looked like New Zealand kiwifruit with a Zespri logo.

Closer inspection revealed a Chinese kiwifruit with a rather clever label.

At your service

All Russian to usTHE GER (Russian yurt) has for centuries been the traditional mobile home for the largely nomadic people of Mongolia.

But times are changing. This modern yurt has solar electricity and a satellite dish for television and communications.

But some things never change: on the left of the picture is the traditional alarm clock and security system!

Martin Carey, owner Electrodip, with a delegation representing the importers at the handing over of thejetters.

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Page 32: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

32 OPINION

THE HOUNDWant to share your opinion or

gossip with the Hound? Send your emails to:

[email protected]

EDITORIAL EDNA

32

Same oldYOUR OLD mate was not surprised at serial whingers. Fish & Game NZ greeting with yet another moan the news that Fonterra dairy farmers have fenced 90% of waterways. Bryce Johnson, the head of Fish & Game (better called Bitch & Complain) whined, “excluding stock from waterways is only a small part of the serious problem New Zealand has with intensive dairy industry degrading fresh-water”. It makes the Hound wonder if the folks at Bitch & Complain – sorry Fish & Game – are happy only when they are constantly carping (pun intended) at dairy farmers.

Here’s how….MEANWHILE, THIS old mutt reckons Fish & Game NZ could take a lesson from interna-tional fishing body World Fish Center (WFC) which recently teamed up with global farming body World Farmers’ Organisation (WFO) promote food secu-rity and rural develop-ment. “WFO and WFC join forces to support agricul-tural organisations, in the belief that farmers and fishermen are a funda-mental resource for global food security,” said WFO executive director Marco Marzano de Marinis. Perhaps (Fish & Game) could follow suit and start working with rather than against farming interests!

Change coming?THE HOUND understands that Fed Farmers’ recent national council heard from both David Cunliffe and Russel Norman. Your old mate is not sure if the farmer lobby is betting on a change of government next year by welcoming the would-be PM and his deputy into the lion’s den, but he had heard that neither of the aforemen-tioned lefty politicians garnered much enthu-siasm from the rank and file members attending the meeting. One attendee told yours truly that Cunliffe’s demeanour and smug attitude meant he totally suited the ‘Silent T’ moniker he has acquired.

Dog tuckerYOUR CANINE crusader is watching the current meat industry machinations and politics with interest. While the good folk at MIE are making all sorts of noble claims about returning profitability to the sector, your old mate reckons this could be more pie-in-the-sky talk, following the latest annual results of the big two co-ops. For the year ended Sept 2013, Silver Fern Farms reported a net operating loss after tax of $28.6 million from total revenue of $2 billion, while Alliance Group reported a net profit after tax of $5.6 million from a turnover of $1.4 billion for the same period.

Bruised ego?‘MOUTH OF the South’, the Farming Show host Jamie Mackay, was upset at the Hound’s dig at him in the last issue. Mackay had, it seems, tried to email yours truly to remonstrate with him over his bruised ego, but broadband issues in the kennel prevented the said email from getting through. Mackay accused the Rural News editor of being the Hound and of having a conflict of interest – adding 2 + 2 and getting 6 – due to the editor’s association with a rival radio farming show. The Hound unreservedly apol-ogises to Mr Mackay – for spelling his surname wrong last issue! The Hound also apologises to his editor dragging him into this spat.

HEAD OFFICE POSTAL ADDRESS: PO Box 3855, Shortland Street, Auckland 1140

PUBLISHER:Brian Hight .............................................. Ph 09 307 0399

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CONSULTING EDITOR:David Anderson .......................................Ph 09 307 [email protected]

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AUCKLAND SALES REPRESENTATIVE:Stephen Pollard ....Ph 09 913 9637/021 963 [email protected]

TAURANGA SALES REPRESENTATIVE:Tony Hopkinson .. Ph 07 579 1010/021 949 [email protected]

WELLINGTON SALES REPRESENTATIVE:Mark Macfarlane .Ph 04 234 6239/021 453 [email protected]

SOUTH ISLAND SALES REPRESENTATIVE:Kaye Sutherland Ph 03 337 3828/021 221 [email protected]

RURALNEWS

ABC audited circulation 81,232 as at 30.06.2013

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.

TECHNICAL EDITOR:Andrew Swallow ................... Ph 03 688 2080

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REPORTERS:Sudesh Kissun ....................... Ph 09 913 9627Pamela Tipa ............................ Ph 09 913 9630Peter Burke .............................Ph 06 362 6319

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“Pack your bags! – we’re off to the duck calling champs!”

It’s up to all of usLAST WEEK came a long-awaited – some might say long-overdue – day-long trip by sec-ondary-school careers advisors and science teachers to see something of the technology that helps drive New Zealand’s primary sector.

These secondary teachers, all from urban schools in the Wellington region, were “blown away” by what they saw.

The sight of Bulls farmer Hew Dalrymple starting a large irrigator from the bus using his iPhone was the starting point, perhaps upstaged only by a demonstration of a trac-tor being guided by GPS. At Massey Univer-sity they saw advances in food technology and a milking at No 4 dairy farm with its array of technology.

The agricultural sector has been quick to criticise urbanites and teachers for not direct-ing young people along its career paths. But none of these influential teachers had ever been offered the opportunity of a farm visit like this, and some had never been in a dairy shed.

Granted, much has already been done along these lines, but of course it’s never enough, and some of the effort has gone short of coordina-tion. Similarly, teachers have been undersup-plied with the resources they need to influence young people to make agriculture a career choice.

Government and industry talk a lot about doubling primary exports, but this won’t happen if too few qualified New Zealanders step up to fill new roles and replace those retir-ing.

We need more action and less talk, under-pinned by a smart, high-level pan-industry strategy for new and existing initiatives.

It’s wrong to blame city folk for their igno-rance of rural matters. Rural sector moaning won’t achieve the necessary paradigm shift. Instead farming, in the broadest sense, needs a well-funded, well-run education programme backed by 100% buy-in by all in the ag sector.

– Peter Burke

Rural News Group was proud to support last week’s farm experience trip to the Manawatu

for secondary school science teachers and careers advisors from Wellington and

the efforts to raise awareness of career opportunities for young people in the primary

sector.

Page 33: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

OPINION 33

An end to farming’s golden eraTHE RECENT death of Martin Finlay brings to an end an era that many saw as the golden age of farming.

It was an age that began in the 1970s and lasted into the mid 1980s. It was a period that so many thought – or at least hoped — would last forever. It was fun being a farmer.

During those wonderful times Federated Farmers was an all-embracing organisation. It seemed every little village had its own group. Being part of the Feds was seen as an honour and the top positions were keenly sought, usually filled from the section leadership.

The ultimate honour was to be the president. This usually meant having spent time as a section chairman. Of these the chairman of the meat

and wool section was the one with the most prestige. Holding it all together was a Jeeves-like personality – Martin Finlay.

Solidly built, Martin looked the part, with a full head of hair, a beard and the ever-present pipe (smoking was not then seen as unacceptable). Although he had a quiet dignity about him, Martin Finlay was the ultimate man behind the scenes, never upstaging the ‘boss.’ Especially when the boss changed every two years.

Martin’s great strength was his relaxed, laid-back style. Some felt he was not serious enough, but they soon realised the value of working with someone that was stress-free.

Martin was with Otago Federated Farmers for at least 25 years and during that time ‘looked after’ a dozen

different presidents. All had their idiosyncrasies, but found it easier to work with the Finlay style than against it.

Martin’s role as Otago Federated Farmers provincial secretary was diverse: he was even involved in keeping the peace if things became grumpy.

He slotted easily into the Feds, having previously worked in the wool industry. He became an assistant wool manager with Dalgetys after gaining a wool classing diploma (first class) from

Massey University.The wool industry

in the 1970s was still a dynamic business, sale days were important occasions when growers and families came to town. However, Martin saw a more challenging future with the Feds.

The monthly Federated Farmers meetings were similar to the wool sale days, with family members often coming to town for the day. Back at the conference table the afternoon was devoted to executive business and attracted a large gathering. In fact, there were times when so many past office bearers turned up, spare chairs had to be brought in.

As a former farm editor looking back on those gatherings, I remember them as wonderful days.

Along with the

president and his deputies, there were chairmen of the different sections such as meat and wool, grain and dairy. There were delegates from specialist committees. Usually there were four journalists from print and radio. In the background orchestrating the whole operation was our own Jeeves – Martin Finlay.

His knowledge was sought throughout Otago and Wellington.

Although in the background; he was very much part of the scene. It was almost like a family gathering, with chocolate biscuits at afternoon tea.

The Otago province was where many of the

country’s most important industries evolved. These include Silver Fern Farms, Ravensdown, Farmers Mutual Insurance, hydatids eradication and Telford. It meant that Otago Federated Farmers was at the cutting edge.

But by the end of the 1980s, the free market tsunami changed life as we knew it. Subsidies of any sort would not be tolerated and the Feds enjoyed a small levy from the Meat Board. The direction from the top demanded the levy end.

The new order, along with its user-pays mentality, indicated major change for the Feds. This was not the life that Martin enjoyed so he

resigned, leaving a gap no one has been able to fill. The media reduced to one and inevitably branches closed.

The new-age Federated Farmers was, it seemed, all taken with centralised efficiency and spreading the workforce to where it was needed.

My old mate Ian Bathgate, as president, spent a year with Martin and then a year without him. The difference was stark. Running the office without Martin was a huge, overwhelming task. “I never fully appreciated the workload Martin handled,” Ian said.

Martin is survived by his wife Judy and sons Mark and Jo.

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Page 34: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

34 OPINION

Aussie agribusiness battles against foreign raidersTHE BATTLE for Australian agriculture is on in earnest.

Farmers are digging in their heels as foreign raiders from North America try to buy our fourth-largest milk company and our largest wheat handler.

The decision on who buys Warrnambool Cheese and Butter is now in the hands of the shareholders after

Federal Treasurer Joe Hockey (acting on the advice of the Foreign Investment Review Board) gave Canadian processor Saputo the green light.

At time of print (and details change daily in this fight), Saputo was offering A$9.20 per WCB share. Our largest co-op, Murray Goulburn, and another Australian company, Bega, had

similar bids in play.The heads of all three

businesses have been running roadshows in the WCB heartland of western Victoria to win the minds (and shares) of shareholders.

A similar scenario is playing out in the grain sector, with US company Archer Daniels Midland (ADM), a global food-processing and commodities trading

corporation, offering A$3.4 billion for grain handler, Graincorp.

GrainCorp owns and controls 280 grain elevators and grain storage capacity of 20 million tonnes all along the east coast.

Its marketing arm buys and sells 4.5 million tonnes of wheat, barley, sorghum and canola per year, servicing customers locally and internationally.

Hockey is under pressure from those for and against the sale to make a decision. Those for the sale say Australia needs foreign capital to improve the service; those against it say the shareholder will be king, and those farmers reliant on proper services will come second.

At stake in both potential foreign purchases is who will profit from Australian agriculture. Farmers will continue to farm, but they won’t benefit fully from their work.

A speaker at a recent

information night in Warrnambool told Rural News that the dairy supply chain provides enough profit for two parties, but not three.

With the farmer, the processor and the retailer all wanting their share, it’s often the farmer who misses out, not being paid enough to reinvest in the business. This is certainly the case in our domestic milk sector, where

foreign-owned processors and supermarkets are making profit at the expense of the farmer. Local co-operatives return all profits to the farmer in the form of higher milk prices.

We hear ad nauseum that Australia will benefit from the “Asian food boom”. However, unless an Australian company is responsible

for processing the raw product and value-adding, Australian farmers will be no more than suppliers. They will continue to be paid what the foreign-owned company dictates.

Australia won’t benefit, companies from the US and Canada will. Our agricultural industry will mirror our mining industry – our natural resources will be sold at

a low price for others to capitalise on.

This is at the heart of the battle, which is proving increasingly uncomfortable for a newly elected Government that is already taking a hit in opinion polls because of its diplomatic fighting with Indonesia and casual attitude over certain election promises.

When Hockey announced Saputo could bid for WCB, he declared: “Australia is open for business”. Australia seems to be the only country that likes to engage in the free market. It’s nice in theory, but it hurts our producers in reality.

While Hockey approved Saputo’s bid within a month, Murray Goulburn will have to go through a Government process to ensure a merger would not be anti-competitive. This process could take at least 12 weeks.

“We’re not going to whinge too much about this, but it is disappointing that we find ourselves on an unlevel playing field in our country,” Murray Goulburn MD Gary Helou said.

Some serious thought on the future of agriculture by the Government is crucial – Murray Goulburn must be given the opportunity to compete for WCB; while the decision to allow ADM to bid for Graincorp must consider the grower interest, and not solely be made on “free market economics”.

These two decisions will have massive ramifications for decades.

Some serious thought on the future of agriculture by the Government is crucial – Murray Goulburn must be given the opportunity to compete for WCB; while the decision to allow ADM to bid for Graincorp must consider the grower interest, and not solely be made on “free market economics”.

@rural_news

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Page 35: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

OPINION 35

ag twitsRural News’ irreverent and hypothetical look at

what’s happening in the farming world

Top Bleats view all

jwilsonfonterra: Thanks to Fonterra share-holders for the $1K pay rise which now takes my annual pay to a mere $450k a year and somewhere near that magical ‘living wage’ everyone is talking about #ifeeltheirpain

leonieguineyantitaf: Well, well @jwilson-fonterra I always knew it would be those people with little or no benefit to the co-op who would do well out of TAF. Now we know who that is? #cannotletitgo

jwilsonfonterra@leonieguineyantitaf: And it had been such a quiet year on the TAF front with you away in Ireland for most of it! You haven’t thought of emigrating permanently have you? #onewayticket

johnmcarthymie: Both SFF and Alliance’s boards are set for a shakeup with united and focused MIE candidates standing for election this month. Change is coming! #soischristmas

danjexblakeexmie: Let me be clear: MIE’s position is unambiguous; we either see a merger between the co-ops or it’s all over! #miemessage1

richardyoungexmie: Can I reinforce that MIE is not wedded to the demand that the meat co-ops must merge. A merger is not the be-all and end-all of the meat industry! #miemessage2

eiongardensff: I can now really enjoy my retirement after turning around last year’s disastrous $31 million deficit to a far more respectable $28.6m loss for this year. #get-tingoutontop

johnmonaghanfonterra: I’m keen to be part of a go-ahead, successful, positive, future-assured farmer co-operative. That’s why I’m on Fonterra’s board— so not sure why the hell I put my name up for Alliance’s? #second-thoughts

grahamturleyanz: I disagree with the Reserve Bank claims that growing dairy farm debt is a risk to our financial stability. Even more dairy farm debt means the more stable ANZ’s financial position becomes! #wearec-reamingit

generalmdunnempi: Atten… shun!!! you scum-sucking, bottom-trawling maggots who call yourselves MPI staff. There’s a new general in charge around here. And things are going to change. Left, right, left, right… halt!! #marchingtoanewbeat

bjohnsonfishgamenz: My one-eyed reading of the Parliamentary Commissioner for the En-vironment’s water report tells me dairy farming is totally responsible completely wrecking our environment, our waterways and the kiwi way of life. #wearealldoomed

tmackledairynz: So @bjohnsonfishgamenz, if we follow your demands and don’t double agricultural output by 2025 – completely wrecking our economy – how are we all going to afford to go fishing and pay your taxpayer-funded levies? #fantasyworld

BEING A farmer’s son and a Lincoln graduate (albeit long urbanised), I take a keen interest in New Zealand’s rural sector.

The growth in our dairy sector in the last 20 years is impressive, and we can be proud of the industry’s success and the economic benefits that have accrued. But I’m not sure we want to see the entire country turned into a succession of ‘factories on grass’.

Then there’s the ongoing decline of the meat industry. New Zealand needs and deserves a robust and sustainable meat industry. Do we want New Zealand to be one giant dairy farm?

The meat industry’s biggest problem would seem to be over-capacity – too many meat works for not enough stock. No industry survival plan will succeed without finding a

solution to this. However, as an outsider looking in, I get the impression of the meat industry that everyone wants to go to heaven, but no-one wants to die first.

The industry could go through a US Government-type shut-down/stand-off situation through sheer bloody-mindedness, and the unwillingness of the stakeholders to see the big picture for the indus-

try’s long-term sustainable prosperity.

With the forthcoming co-op elections, share-holders have opportunity to influence the direction of their industry and future. I still know many sheep and beef farmers where I grew up and hope they take the chance to vote and take ownership in that future.Hugh BlaikieHerne BayAuckland

MEAT PRODUCERS MUST ACT NOW FOR INDUSTRY’S FUTURE

THE ITEM on black beetle (Rural News, Nov 19, p33) is interesting, as it shows a long term remedy against black beetle.

I have found much the same applies to grass grub. My observation is that if one has good values of calcium and magnesium in the soil, one has good populations of earth worms. I have yet to see good populations of earthworms with problem levels of grass grubs in 50 years of observation.

One can do something with soil amendment, but one can’t alter the rhythm of the Southern Oscillation.

By my reckoning, the next strong El Nino seasons will be 2020 and 2022. I started taking an interest in weather rhythms 46 years ago for the purpose of making hay in dry weather. Peter BacchusRD1Palmerston North

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Page 36: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

36 MANAGEMENTSimple steps to zone managementThe Foundation for Arable Research held its first major field day of the season late last month, a three-stop tour of its South Canterbury sites. Andrew Swallow reports.

SHOULD YOU be tweak-ing inputs as you, or your machines, traverse your paddocks?

Foundation for Arable Research field day guest speaker Armin Werner, of Lincoln Agritech, suggests three ‘rules of thumb’ to determine whether such zonal management is worthwhile (see box).

“If you have fields that fit those criteria then you should at least be think-ing about trying zoning,” he said, suggesting a high, low and medium zone approach as a simple start-ing point.

That could be done

from yield maps or simply from the in-depth historic knowledge of paddocks most farmers accumulate. Another way might be EM [electro-magnetic] map-ping of soil, which corre-lates with water holding capacity.“It’s a cheap one because it’s very fast,” he noted.

Once a map with zones is produced, it can be used to alter input rates for seeds, fertilisers and other inputs. While low yield-ing areas typically require less phosphate or potash fertiliser because less is removed from the soil with the crop, with nitro-

gen the reverse may be true, and higher nitrogen rates on those areas may go some way to bring-ing yields up, as FAR trials had shown.

However, that would depend on the limit-ing factor for yield, and Werner stressed often that is water. “The phys-ical property that’s the most important and that you can’t change is the soil water storage capacity.”

Challenged on that, he acknowledged organic matter could be increased by management, and hence water holding

capacity, but said at best extra organic matter might add 20% water hold-ing which for a soil with a potential 100mm of plant available water, would still only be an extra 20mm.

In some areas of Ger-many, Werner’s homeland, farmers rely completely on yield maps for their zone management because every year they have dry summers and water is always the limiting factor,

he added.Fellow field day

speaker, North Otago farmer Pete Mitchell, explained why water, or rather variable rate irriga-tion, is where they started with zone management.

Of seed, chemical and fertiliser, water was the greatest cost – about $800/ha if they applied 200mm; and when they investigated the potential

payback from varying irri-gation rates it offered the quickest return.

As such it best fitted their decision ‘tree’ for zonal management, which prioritises projects by the expense of the inputs involved, the likely time to payback on adopting a zoned approach, and pro-ductivity gains that might be achieved.

Mitchell says they’ve

been calculating payback periods purely on savings because while there prob-ably will be yield gains, these are hard to predict and quantify.

EM mapping of the soils under irrigation revealed water holding capacity ranging from 34mm to 114mm, yet they’d been using a uni-form water rate right

TO PAGE 37

ZONE 'RULES OF THUMB'• Is paddock >10ha?

• Does yield vary >30%?

• Will zoned areas be >20% of paddock?Armin Werner (right) discusses his zoning suggetsions with growers at FAR’s field day.

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Page 37: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

MANAGEMENT 37

around the pivot. By tuning irrigation to soil water holding capac-ity they’ve since slashed water take from 3L/second to a maximum 24L/second, a 27% saving, and sometimes as low 11L/second.

Also, by avoiding over-watering, it’s saved labour because pivots no longer get stuck on hills and it’s eliminated the environ-mental, not to mention consent-breaching, prob-lem of run-off.

Based just on that reduced maximum take, the saving is $216/ha, or about $18,000 on the area covered by the modified 510m pivot, Mitchell cal-culates.

With a cost of about $100/m of pivot to fit the variable rate technol-ogy and install the nec-essary control software, the payback will be three-five years based on saving alone.

“But you’ve got to have

someone with a passion for it to drive [the instal-lation] for you because it is quite complicated,” he warns.

Mitchell’s also had soil grid sampled to identify and remedy pH, phosphate and potash variation, in one area saving $170/ha on phosphate fertiliser, though in another an extra $10/ha was needed to raise pH.

Werner stressed that variability within a pad-dock, particularly as pad-docks are made bigger to accommodate modern machinery and increase work rates, can be as great as across 20,000ha. “This we have to face and we have to handle.”

He says in Austra-lia already at least 50% of cereal growers are using variable rate application for fertiliser and at least 30% are varying seed-rate within paddocks, albeit across typically much larger paddocks than New Zealand’s.

FROM PAGE 36

Simple steps

Cultivars and take-all riskWHAT’S THE best cul-tivar to grow as a second wheat? And if you’re going to grow second wheat, what’s the best first wheat to optimise production over the two years the paddock’s down to the crop?

Plant and Food Research’s Matthew Cromey relayed to the field day crowd the find-ings of FAR-lead trials in South Canterbury which are starting to answer those perennial ques-tions, for today’s cultivars at least.

“The difficulty is cul-tivars change quite rap-idly, and take-all is quite a patchy disease,” he told Rural News after the field day.

Results from take-all (guamanomyces grami-nis, var tritici) inoculated plots suggest Consort and Wakanui have some tol-erance to the root rotting fungus so may be good choices as second wheats.

However, Wakanui as a first wheat left the high-est take-all inoculum of

the nine cultivars tri-alled, suggesting that if a second wheat is planned, it wouldn’t be the best choice as the first wheat.

Conquest and Consort left similarly high inoculum so are probably best avoided too if a second wheat is likely to follow.

At the other end of the spectrum, Sage and Oakley left low inoculum, suggesting they could be good first wheats where a second wheat will be the next crop.

The work also indi-cates cultivar choice may be a way to manipulate the phenomenon of take-all decline, where disease severity peaks in second or third wheats or other susceptible cereals, then reduces to a moderate level in subsequent wheats thanks to the natural build up of bacteria in the soil which are antagonistic to the take-all fungus. Cromey found popula-tions of take-all antag-onistic bacteria highest following Conquest and

Wakanui, suggesting that rapid buildup of take-all inoculum in those culti-vars also results in rapid buildup of the bacteria which prey on it, acceler-ating take-all decline.

One of the more visually striking results on view at FAR’s Temuka site was a herbicide and cultivation interaction trial in wheat. For the third year running pre-emergence herbi-cides struggled to control volunteer ryegrass, despite two pre-cultivation applications of glyphosate, in all plots except those ploughed.“What it’s really saying is when you get to the plough, you’ve got no ryegrass,” noted FAR’s Nick Poole.In Western Australia where herbicide resistant weeds are rife growers are using the plough to “reset the clock” on weed control, burying seeds by ploughing once, and then not ploughing again for years, he added.“We’re not immune from getting [herbicide] resistance which is why we’ve tried to build up this database of cultural con-trols for these weeds.”Of the pre-em herbicides used, a coded product from Bayer which, subject to EPA approval, will be available next year, looked particularly promising offering considerably better control than current standard Firebird.

Plough proves place

Page 38: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

38 MANAGEMENT

Boosting beef without

STEPHEN AND Jane Hayes run 348 sheep and 734 cattle on their 583ha property near Kaeo, just north of the Bay of Islands. For the past three years they’ve been Beef + Lamb New Zealand’s Far North monitor farm during which time they’ve lifted gross farm revenue $43,850, not to mention having better pasture covers and stock condition across the farm.

Stocking rate’s been lifted from 8.5SU/ha in 2011 to 9.7SU/ha. That’s despite initial concerns that stock weren’t getting enough to grow properly

as it was in 2011.“I didn’t feel we were

doing a good enough job of feeding the animals we had without adding on more,” Jane commented to the field day.

But with the help of the monitor farm management team, the Hayes have lifted production by subdividing and increasing finishing stock numbers.

While the farm has 400ha in pasture but only a small portion on river flats and a plateau was suitable for subdivision. The couple trialed two forms, one developed by

Kawakawa farmers Geff and Dinah Cookson and another by Arapohue farmer, John Blackwell.

The Cookson system creates 1ha sections with permanent wires, and if necessary, smaller areas with temporary fencing. Stock are moved every one to two days.

Under the Blackwell system small mobs are held on sections of less than 0.5ha. Stock are shifted by temporarily lowering fences.

Hayes says she enjoyed using the Cookson system over the Blackwell model as there was less daily

work.The subdivision

has allowed them to carry more cattle than previously and they’re increasingly focusing on finishing rather than selling store.

In July 2011 they were carrying 44 10-month-old heifers but increased that to 39 spring born R2 and 80 spring born R1 heifers in July 2012. By July 2013 they had 183 heifers and with a range of ages they’re proving a useful pressure valve, keeping pasture quality high but with options to offload throughout the year.

Bulls too are being used as a flexible pasture management tool. The couple carried 65 autumn

born bulls and 65 spring born bulls in July 2013 compared to a respective 24 and 40 in July 2011.

Spring bulls are marketed in November with the remainder being sold in mid-late autumn.

Subdivision has brought one Far North couple improved farm production and increased profit without recourse to borrowing, a Beef + Lamb New Zealand field day late last month heard. Gareth Gillatt reports.

Far north monitor farmers Stephen and Jane Hayes.

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Page 39: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

MANAGEMENT 39

borrowingAutumn born bulls will be marketed in late spring or summer depending on feed.

Hayes says there were some difficulties managing heifers through the drought. They had planned to market 60 autumn-born R2s at the end of autumn but needed to carry them through to spring due to insufficient weight gain. They’ll all be gone this month.

The farm carried 105 steers as of July 2013, 46 more than two seasons ago. They planned to offload them all by the end of last month to make room for bulls.

Heifers get the bulk of the new grass with the 150-head breeding herd tidying up behind. Hayes

say they have done an excellent job, getting rid of pasture problems like carrot weed. However, they found the cows struggled to maintain condition through winter so last season the took the Monitor farm management team’s advice and delayed start of calving three weeks to better match seasonal grass growth.

While most calves won’t be ready for traditional weaner sales in March, Monitor Farm facilitator Gareth Baynham says it will mean the business earns more.

Thanks to subdivision and tighter grazing control the farm’s now producing much more pasture. At the field day they had 14ha

When the Hayes became monitor farmers in October 2011 a goal was to build the business to the point where they could afford an extra full-time labour unit, as a way of future-proofing the business.

However, they’ve found temporary workers fit as well, if not better. For example, they hired a person specifically to shift fences for the

nurse herd on the intensive beef operation. “They had their own bike and they knew exactly what they were doing.”

The couple have also hired gorse sprayers and scrub cutters.

They say the contract approach helps keep tight control of project costs and eliminates the ongoing cost a permanent position creates.

Contract labour solution

shut-up for silage which was due to be cut by the start of this month.

The subdivision and stock increases have been gradual, which Baynham says has met the Hayes’ objective of funding development from

profit, rather than capital borrowing.

The full benefits of the changes will be long-term, he adds.

“It would be interesting to come back to the farm in six years and see how things are going.”

MOB STOCKING pasture is the best way to keep problem weed Pars-ley Dropwort under control, a Beef + Lamb New Zealand study in Northland has found.

Parsley dropwort, or carrot weed as it is commonly known, is found in Northland, Auckland, Waikato and Coromandel. It’s invasive, unpalatable, and prevents stock getting to more valuable feed sources.

A one-year study was carried out on Stephen and Jane Hayes’ farm (see opposite) to see which of the common control methods – spraying, heavy stocking, or topping – is most effective, and whether undersowing with Italian ryegrass could help.

Sections of infested paddock were sprayed in June or left untreated, with drill or no-drill treatments overlayed, followed by further boom or spot sprays, or untreated, in September.

Monitor farm facilitator Chris Boom says hammer-ing infested pastures with stock in September-October proved most effective. Sheep did the best job, but Boom notes cows, especially older cows, ate and grew well off it provided the weed was still growing.

“There’s a huge difference between stuff that’s got a full-blown head and stuff that’s just coming out,” he says. “The young stuff is actually really good quality: it’s just as good as clover.”

The Hayes say an iron-sand paddock next to the trial which was just as infested was completely clear after mob stocking in the same way as the trial. It was used as a birth-ing paddock with 1000 ewes on it.

The study found spray 2,4-D could also help, either boom sprayed in June, or boom and spot sprayed in Sep-tember.

However, there was a marked reduction in the percent-age of legumes in pasture. This was especially noticeable in August where patches sprayed in June had just 7% legume remaining compared to 18% in control plots.

Seeding with Italian ryegrass didn’t seem to help, which Boom suggests was due to a tight sward of other pasture varieties.

GARETH GILLATT

Mob stocking deals to carrot weed

Chris Boom

Page 40: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

40 ANIMAL HEALTH

Antibiotic use in spotlightVETS HAVE called on rural New Zealand com-munities to work with them to ensure antimicro-bial medicines are used wisely.

In a statement to mark International Antibiotic Awareness Week (Nov 18-24) the New Zealand Veterinary Association said it was timely to remind New Zealanders of the threat of resistance.

“After more than seventy years since the first use of penicillin in human medicine there are a number of bacteria in circulation across the world that are resistant to one or more antimicrobial drugs,” says NZVA president Dr Steve Merchant.

“Animal and human health have always been

interlinked, and bacte-ria resistant to drug ther-apy can be passed from animals to humans, and vice versa. Therefore vet-erinarians and human health physicians have an obligation to continue to work together on this key issue.”

Merchant told Rural News a lot more informa-tion needs to be gathered in New Zealand to assess the risk and possible inci-dence of resistance to antimicrobials here.

Besides the potential for resistance to render products ineffective, which raises animal welfare and production considerations, there’s a danger that products effective as animal health remedies may be withdrawn by “the powers that be” if there’s correlation, or even just a concern of a correlation,

between veterinary use and human [pathogen] resistance, he adds.

That’s particularly the case with drugs used in food producing animals such as dairy cows, beef animals and lambs, he notes.

To mitigate those risks, inappropriate use of anti-biotics in farming – either because the antibiotic isn’t the best for that pur-pose, or because alterna-tive methods of treatment or prevention could have prevented the need for the antibiotic – should be avoided.

“For example, using dry cow therapy because of poor hygiene: that sort of thing may mean we don’t have access to products in the future.”

The right product for the right disease is also a key. There have always been antibiotics that don’t

work, or don’t work well, against certain patho-gens. In some cases it may be that an older, proba-bly cheaper product is the best to use, without going to the ‘top-shelf ’ range. Equally, there will be times where the cheapest and easiest-to-use product isn’t the most appropriate.

Merchant stresses the importance of work-ing with the vet, not just asking for the prescrip-tion.

“Consumer demand for antimicrobials to treat

ANDREW SWALLOW

[email protected]

EUROPE NOMINATES November 18 as European Antibiotic Awareness Day and the British Veterinary Association (BVA) issued animal owners a reminder similar to the NZVA’s, with the message ‘Don’t Infect, Don’t Expect, Do Protect’.

Don’t infect – keep animals healthy through preventive treatment, good nutrition and hygiene

Don’t expect – like in human health not every illness requires antibiotics

Do protect – antibiotics must be used according to instructions on the label and a course must be completed even if the animal is getting better.

“Our simple message ‘Don’t Infect, Don’t Expect, Do Protect’ should help owners follow good practice and ensure antibiotics continue to work for all animals and humans,” says BVA past president Peter Jones.

The BVA says the problem of antibiotic-resistant bugs in humans is primarily the result of antibiotic use in people, rather than veterinary use, but animal use is an important factor contributing to the wider pool of resistance.

Don’t infect or expect – do protect

animal disease must be balanced by client/con-sumer education [includ-ing pet owners, as well as farmers and farm man-agers] to protect against poor or ineffective use which can encourage resistance to develop…. Veterinarians play the pre-dominant role here, sup-ported by industry and regulators to ensure con-sistent messages are deliv-ered.”

Dr Steve Merchant

Danes claim diagnosis breakthroughRESEARCHERS AT Denmark’s Aarhus University are claiming a major breakthrough in the battle against overuse of broad-spectrum antibiotics.

They’ve developed tests that cut the time to identify which anti-biotic is best, and at what dose, for a given bacterial infection from 16-24 hours to 2-4 hours, and even less in future.

It means doctors and veterinarians will be better able to target treatments,

helping prevent resistance developing and cutting disease duration, they say.

The tests use Danish biotech research company Unisensor’s 3D micro-scope, the oCelloScope.

“The oCelloScope is undergoing constant development,” says researcher Marlene Fred-borg. “Based on its poten-tial we expect to be able to map the resistance profile

of a bacterium significantly faster than two hours. – Alan Harman

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Page 41: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

ANIMAL HEALTH 41

Mandatory BVD controls unlikelyA COMPULSORY con-trol programme for Bovine Viral Diarrhoea (BVD) in New Zealand is unlikely in the near future despite a growing number of nations, mostly European, adopting such measures, says the chairman of a national steering commit-tee on the disease.

Speaking to Rural News in the wake of Scotland’s move to mandatory test-ing and movement restric-tions related to the disease, Roger Ellison said the focus here remains firmly on voluntary measures.

“At the moment we don’t believe the indus-try appetite for regulatory control is there. If we were to go down that route all the industry bodies like Dairy NZ, Beef + Lamb New Zealand, OSPRI and MPI would have to be on board.”

The measures Scot-land’s introduced (see sidebar) are similar to those deployed on TB here. Ellison notes the TBfree programme is industry funded and so any similar programme for BVD would have to be as well.

“And as soon as you start to talk funding; you have to have a pretty strong case.”

Since the steering com-mittee was formed in 2005, industry knowledge about the disease has improved

considerably with many farms, particularly dairy, now aware of their herd’s status.

“The interest has jumped but there’s still much work to do in terms of knowledge transfer.”

Vets have similarly made “huge gains in their understanding of the dis-ease and knowledge of how to control it,” he adds.

For farmers a key and timely message is to make sure bulls are both tested and vaccinated for BVD before bringing them onto the farm. Ellison explains vaccination is still needed because of the risk of bulls picking up infection before arrival on the user’s farm. Such a recent infection not only risks importing the disease, but renders the bull temporarily infertile so it won’t do its job.

“The number one rule is: test and vaccinate all bulls.”

Nationally, about 15% of dairy herds include ‘persis-tent infectors’ or PIs, while it’s estimated 50-60% of beef herds contain PI cows.

“The key difference with beef herds is the calves are left on the cows, so you can have PI calves running around with adult cows during mating.”

That matters because infection in the first four months of pregnancy is what gives rise to a PI calf, perpetuating the disease’s presence. That is, if it sur-

ANDREW SWALLOW

[email protected]

vives: infection of the cow during pregnancy can also cause abortion and the calves that do survive gen-erally suffer from ill-thrift.

In an average-sized dairy herd, circa 380 cows,

it’s estimated the disease costs about $70,000/year in lost production and calves, while for beef herds it’s “anywhere between $3000 and $9000/year per 100 cows,” notes Ellison.

The Scottish Government, last month, announced it would introduce ‘phase 3’ of its BVD eradication programme, movement controls, from January.

Herd testing for the disease has been mandatory since February 1 with over 90% compliance achieved by that date. About 80% tested negative, indicating about 20% infection – lower than anticipated – which was interpreted as “a strong indication” farmers were already taking steps to eliminate the disease.

Aberdeenshire, on the northeast coast, and the far southwest, a strong dairy region, had the highest rates of infection – with 50-60% of herds infected.

From�January�2014,�moving�a�known�Persistently Infected (PI) or transiently infected (TI) beast in Scot-land will be an offence and declarations of herd�status�for�BVD�will�be�required�prior�to�sales.

Movement restrictions will also be imposed on holdings if the keeper of the animals fails to meet mandatory testing requirements.

Further�movement�restrictions�associated�with�the�disease�may�be�introduced�from�December�2014.

Scots’ BVD moves

Bulls: get them tested and vaccinated for BVD before bringing onto the farm, says BVD committee chair Roger Ellison.

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Page 42: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

42 ANIMAL HEALTH

Ospri changes to clear C2 confusionNEWLY FORMED herds, or drystock herds, are no longer to be classified C2 for TB status, says OSPRI, the body responsible for NAIT and TBfree.

A letter to herd owners last month informed drystock herd owners that their herds were to be classified CM, standing for ‘clear monitored’, from November 25, and new herds classified as S, for ‘suspended’ status.

The exception to S status would be if any animals came from an infected herd, in which case an I – for ‘infected’ – status would apply.

New herds must be tested within a year of registration and once tested clear, will become C2 herds. The exception to that is if all ASDs for stock forming the new herd can be produced, in which case the status will be the lowest recorded on the ASDs. Thereafter status increases numerically, annually, ie C3, C4, C5 etc, assuming tests remain clear.

Previously C2 status also applied to all dry herds, previously infected herds clear of TB for two years, and new herds, which was creating confusion, OSPRI said.

A herd’s clear status will be changed to suspended (ie S) if TB is suspected, until testing confirms infection or otherwise. A herd’s status could also change to suspended due to receiving stock from an infected herd, or if established from sources with an unknown TB status, or if testing obligations are not met.

CM herds will periodically be assessed by questioning owners/managers to establish whether testing is required.

Typically such herds are effectively monitored by surveillance of animals sent for slaughter, but where that’s not the case, such as with dairy grazers, some on-farm testing may be required.

Ospri in a media statement last week outlined the changes and encouraged farmers and lifestylers to get cattle and deer tested for bovine tuberculosis (TB) as soon as they registered with TBfree New Zealand. Even one animal constitutes a herd and needs to be registered, it said.

Ospri’s group manager for programme design and operations,

Stu Hutchings, told Rural News the changes were not a result of recent cases thought to be due to stock movements, such as those in Taranaki and South Canterbury.

While the Taranaki cases look likely to have originated from the Nelson area, no definitive link has been established yet, nor have the South Canterbury cases been proven to have come from the West Coast, as suspected. “At this stage there are indications [of the origin] but these have not been confirmed,” Hutchings said.

The recent Taranaki, Waikato, Northland, and Canterbury cases, plus a new infection at Waiuku, south of Auckland, have pushed the number of herds classified as infected up from a low in the 70s to exactly 100 as of last week.

Hutchings says the status changes will help minimise the risk of buying stock that may not have been TB tested. A C2 status indicates the herd has definitely passed a routine TB test. C1 would indicate one year clear of infection.

ANDREW SWALLOW

[email protected]

KEY POINTS• Drystock herds now CM status• New S status indicates “suspended”,

awaiting testing.• All ‘herds’, even sole animals, must be

registered: call 0800 482 4636 or go to www.tbfree.org.nz

ASD FORM REMINDER

Ospri also reminded herd owners ASD forms must be the new version with a box for NAIT numbers top right (Rural News, Nov 5). New forms may be downloaded or ordered from www.tbfree.org.nzDrystock herds are now CM, not C2.

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

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Page 43: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013RURAL NEWS // DECEMBER 3, 2013

42 ANIMAL HEALTH ANIMAL HEALTH 43

Work out worm strategy nowPLAN YOUR worm con-trol strategy using grazing management, combina-tion drenches, refugia and an exit drench to minimise production losses and resistance risk.

Those were among the key points national Worm-wise spokesman Trevor Cook made to listeners on Beef + Lamb New Zea-land’s latest Scene and Herd conference call.

“Not enough of this is done on farm: sitting down early in the season and saying what expectation [of worm challenge] do we have for lambs, and calves come to that.”

Larval challenge will depend on what, when and where these susceptible classes of stock are graz-ing, he explained. Weaned lambs going back onto paddocks used for lambing will likely face a high chal-lenge; those going onto paddocks grazed by finish-ing cattle much less.

If at all possible, high challenge situations

should be avoided.“Where there is a high

challenge no amount of drenching is going to prevent that impacting on liveweight gain,” he warned.

A good time to faecal egg count is four weeks after lambs or calves go onto feed that’s expected to pose a low challenge, including crop, as a check that the reality is matching the expectation.

For example, on crop, which “does take a lot of the worm challenge out”, lambs and calves will graze grass to the dirt on the paddock perimeter while they become accustomed to the new feed, and in doing so may face a con-siderable challenge.

“So it’s not uncom-mon to see a worm burden establish early on when they go onto crop but as time goes on it should go down and down.”

When drenching, a combination is a must to minimise the rate of resis-tance build up, and a com-bination that is known to be effective on the farm’s parasite population.

The problem is, few farms know the resistance status of the parasites present, says Cook.

“We’d be lucky if 10% of farms have done a faecal egg count reduction test (FECRT). It’s vital when you come to making drench decisions. With-out that information you can’t be making the best choice. You should always be using a combination but you’ve got options and you’ll only know which are the best options if you know what works and what doesn’t.”

For farms buying trad-ing stock for finishing, and consequently at high risk of resistance, he recom-mends a reduction test is done at least every three years. For breeding prop-erties where only rams and bulls are imported, once every five years should suffice.

Whatever the farm type, weaning is a good time to do the reduction test because faecal egg counts are usually high, with most worm species present, whereas later in the season one species or another – which will depend on region – will tend to dominate.

In cattle, go for when rearer calves hit 100kg, or with beef calves on their mothers, when they’re weaned, says Cook. He warns against relying on visual signs of resistance.

“What you don’t realise is that the drench has to be failing badly before you see something by eye that says ‘it’s not working’.”

COOK'S TIPS• Plan grazing to minimise

challenge.• Plan drenching around grazing

and resistance status.• Faecal egg counts to check

plan’s working.• Reduction test to determine

resistance status.

In some cases 50-60% failures haven’t been spot-ted, he notes.

The efficacy of the drench combination used is fundamental in deter-mining numbers to leave untreated to create refu-gia. With fully effec-tive drenches only one or two animals untreated in every hundred will stave off resistance indefinitely, it’s been calculated, but as soon as efficacy starts to slip, the untreated require-ment rises rapidly just to maintain the status quo.

While the refugia prin-ciple has had good uptake on sheep farms, few cattle farmers, including dairy graziers, are deploying it, Cook notes.

That’s despite the

use of pour-ons in cattle hiking the risk of resis-tance developing, if it’s not

already present.“We do know a lot

about worm management

but we don’t have enough farms applying what we know.”

Weaning is a good time to get a reduction test done, says Wormwise spokes-man Trevor Cook.

ANDREW SWALLOW

[email protected]

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Page 44: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

44 MACHINERY & PRODUCTS

More accuracy in fert spreading

Lighter and safer to install

A NEW Bailey Bazooka twin-wall culvert pipe is stronger than most alternatives and gives better water flow, says David Bailey, the general manager of Bailey Pipes, a subsid-iary of Bailey Tanks.

The product is the company’s first move into piping, building on its knowledge of plastics through tank construction.

“Expertise built up over 40 years convinced us we could produce and deliver a better alternative to what is currently available,” Bailey says.

He refers to a migration from concrete to plastic for farm drainage

because plastic is easier to install and more adaptable.

The culverts are made in New Zealand from a mix of new and recy-cled high density polyethylene using European machinery designed for culvert pipe manufacture. The result is culvert pipe “more durable, flexible and affordable than most other twin walled culvert pipe on market,” the company says.

The culverts’ flexibility prevents cracking when the ground moves. This flexibility is said to make them easy to install, as does the pipe’s easy jointing system: a socket at the end of each culvert allows one to slide over another without any

other connectors. Shorter (cut) lengths can be

joined using Baileys range of Bazooka fittings.

Even the largest culverts in the range weigh only 70kg, allowing two people to carry one culvert, making installation relatively easy, with less machinery and labor required, and safer.

The culverts are said to be cheaper than most others locally available.

Sizes range from 160-500mm OD. Lengths are 5.5m in the South Island and 6m in the North Island.www.baileypipe.co.nzTel. 09 262 7070

GARETH GILLATT

ELECTRONIC MASS control (EMC) on Kuhn hydraulic-drive Axis fert spreaders, and new GPS-linked technology, raises the machines’ perfor-mance at headlands and field corners, says the New

Zealand distributor.First introduced on

Axera hydraulic drive spreaders, the EMC system is available on Axis models arriving in New Zealand early in 2014.

EMC refers to constant

measurement of mass flow (kg/min) at the point of application, indepen-dently at each disc. This allows the machine to con-tinually adjust its aperture size to maintain a target application rate. This is

achieved on hydraulic drive machines by moni-toring the pressure in each of the hydraulic motors driving the discs, then cor-relating this pressure with the actual mass flow.

Measurements are taken and monitored every second, enabling almost instantaneous adjustment of actuator/aperture posi-tions to either side of the machine in response to changes in fertiliser flow-ability (as may be caused by a partial blockage for example).

Similarly, because application rate is a func-tion of forward speed, disc speed and working width,

any changes to these parameters are managed by the machine’s infor-mation system to allow adjustment on the move and the maintenance of the target application rate.

The EMC system avoids the need for con-ventional static calibration testing, since the machine makes the adjustments

automatically from simple pre-programmed data. Thus 100% of settings are done in the tractor cab.

The advantages of EMC over conventional weigh cell systems is that of pro-viding data on and con-trol of each side of the machine independently, and maintaining accuracy in hilly conditions.

Meanwhile for all Axis models with a GPS link, the new Opti Point system will further improve fert spreading accuracy, Kuhn says.

“Opti Point automat-ically controls aperture opening and closing at the headlands to mini-mise over- or under-appli-cation.”

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Page 45: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

MACHINERY & PRODUCTS 45

Chop quality is better from New Holland’s new FR series harvesters the company says.

Top notch chop!CHOP QUALITY is more uniform and throughput better from New Holland’s new FR series harvest-ers because of an all-new chopper body, says local marketer CB Norwood Distributors Ltd.

The range has five models of 424-824hp. New features include a high performance grass pick-up header. All models in the FR range are compat-ible with a wide range of headers.

“The FR has the latest advances in blower design, which have optimised crop transfer from the cutter-head to the processor and trailer, even when working in the lightest grass crops.

“The paddle type blower has increased the mass of smooth flowing air by 40% to transport higher volumes of crop more efficiently and to reduce the risk of crop accumulation in the chopper body area for much less crop build-up,

reducing maintenance demands.”

Because the opti-mum harvesting window for guaranteed nutri-tious silage is tight, the new 300FP grass pick-up was developed for higher speed, reliable, smooth harvesting in all condi-tions. The 3.0m-wide pickup makes light work of even the widest grass swaths.

The pickup tine reel now has five tine bars instead of four, enabling higher ground speeds, “perfect when working in unstable climatic con-ditions or for operators looking to increase pro-ductivity and profitabil-ity”.

When working in muddy fields, the pickup support wheels prevent bulldozing and maintain uniform header height. Sturdy reinforced steel tines (replacing the rubber mounted tines) reduce tine breakage even in

uneven fields or in stony conditions, the company says.

Cab access is said to be easy and the operator plat-form has been widened with sculpted hand rails for safe entry and exit.

The side panels open wide as a single unit on self-supporting gas struts for easy servicing access.

Daily maintenance has been further simplified by advances in feed roll pack-aging. The entire area has been sealed with the addi-tion of precision placed plates which form a pro-tective seal around the feed roller to prevent the build-up of debris, which can substantially reduce cleaning.

AWARD WINNING IntelliFill technology enables the operator to accurately fill the trailer with minimal losses, even when visibility is limited.

A 3D camera mounted under the spout guides the crop flow into the trailer, ensuring a uniform fill.

This system lifts operator comfort and can boost productivity, CB Norwood says. Operators can concentrate on harvesting without having to contin-ually check over their shoulder to monitor crop discharge.

The automatic spout guidance will consis-tently reduce crop spillage increasing the forage harvesters’ overall quality of work.

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Page 46: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

46 MACHINERY & PRODUCTSWeed-free brassicas leads to better yieldsBETTER BRASSICA yields are result-ing from a “simple weed management system” embodied in PGG Wrightson Seeds’ Cleancrop Brassica System, the company reports.

It set out to deal with prob-lem weeds commonly found in brassica crops. The weeds compete with brassica, decreasing yield produc-tion and choking profits.

Says PGGW, “The Cleancrop Bras-sica System is a traditionally bred her-

bicide-tolerant (HT) cropping system that combines HT brassica seed, Dupont Telar (a broad spectrum herbi-cide) and a best practice guide to maxi-mise on farm performance.”

The system offers a choice of four different brassicas: HT swede, rape, bulb turnip and leafy turnip.

The HT swede was retailed for the first time in spring 2012 and its uptake by farmers prompted Melissa Sowden, from PGG Wrightson Seeds, to run an

HT swede competition.Entries ranged geographically

from Lee Steam, Otago to Te Anau, Southland. The top five entries (four in Southland and one in South Otago) were judged on the yield of the crops by taking wet-weight samples of leaf and bulb, and drying them to ascertain actual DM percentages.

The winners of the competition were Aron and Lisa Perkins, from Iron-wood, located in Waikana, Southland.

They run a sheep, beef and dairy sup-port farm.

“The Perkins had an exceptional swede crop weighing 18 tonnes DM/ha,” Sowden says. “The crop produced fantastic sized bulbs.

“The swede crop was impressive and some of its success was attributed to 200kg DAP/ha banded with the seed at sowing, ensuring the crop got the best start with readily available nutri-ents. In addition, the paddock got 2.5

tonnes/ha of lime and 700kg super 10/ha prior to sowing and 100kg urea/ha in January.”

Sowden adds that the Ironwood property is prone to weeds such as shepherd’s purse, chickweed, spurrey (yarr), fathen and wild turnip.

The Perkins sowed 35ha of HT swede in 2012 and “are planning on increasing the area sown this spring as it’s such an easy system to use and the results speak for themselves,” Sowden said.

Plan now for feedWITH A long hot summer looming, now is the time to start making important decisions on feed supplements for early next year, says Pacific Seeds.

The company reports that last year Central Hawkes Bay farmer Sue Wylie planted Pacific Seeds BMR Rocket with “really impressive results”.

“We planted BMR Rocket in mid-November and were able to put our bulls on it 56 days later,” Wylie says.

“Despite the really bad drought they averaged weight gains of 2kg per day while they were on it and we were able to get them off to the works one month earlier than the previous year. On average they were also 20kg heavier than the previous year.”

Pacific Seeds says its summer forages provide grow-ers with diverse and high yielding quality feed options developed especially for environments prone to extreme summer conditions.

“With our range of maturities, plant types and agro-nomic traits, we have a summer forage solution to suit growers specific needs”, says Pacific Seeds territory man-ager Barry Smallridge.

Pacific Seeds forage options include BMR Rocket, BMR Octane and Sprint.

Rocket, which flowers earlier than Octane, is better suited to intensive management, whilst Octane’s longer growing season provides for greater flexibility. Both these Sorghum x Sudan hybrids have excellent vigor and regrowth rates, with well-balanced energy and protein levels. Each of these hybrids has the BMR-6 gene which provides for enhanced digestibility, palatability and increased ME levels. Both forages suit dairy and cattle.

Sprint – which is a Sudan x Sudan hybrid – is ready for grazing or cutting in 50 days, with rapid regrowth allowing for some farmers to get five grazings from it. It is extremely palatable with fine stems and is ideally suited to shorter seasons, or where it can be well managed. Sprint is suit-able for sheep, cattle and dairy stocks.

“Because Rocket and Sprint are so fast growing they provide farmers with a number of management options,” says Smallridge.

“Firstly, they let growers get an extra rotation out of their grass pasture. On top of that there is also the option of grazing or cutting for hay, baylage or silage.

“They also provide our growers with greater flexibil-ity than they would have with summer brassica,” he adds.Tel. 027 494 7706www.pacificseeds.co.nz

Sue Wylie checking the BMR Rocket crop on her Central Hawkes Bay property.

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Harvest results.

Page 47: Rural News 3 Dec 2013

THE BRANDS YOU TRUST ARE NOW AT

TFM TRACTORSHASTINGS

TFM Tractors1217 Omahu Road, Hastings | Phone: 06 879 7536

ADVERTISEMENT

AGCO Australia are pleased to announce the appointment of TFM Tractors as our new Massey Ferguson, Fendt and Iseki farm machinery dealer for the Hawkes Bay region, effective 1st December 2013.

TFM Tractors is owned and operated by the Tulloch family, led by dealer principal John Tulloch. John has a proud history of supplying quality farm machinery and after sales support to customers in the Wairarapa district.

Announcing the appointment is AGCO Australia’s Managing Director, Warwick McCormick: “AGCO’s plan to increase their representation and support for new and existing customers throughout the Hawkes Bay weighed heavily on the company’s decision

to appoint and support TFM Tractors in their new venture.”

TFM Tractor’s experience, focus on AGCO brands and long term plans to grow their business appealed to AGCO and contributed to the decision to appoint them as the new dealer responsible for the Massey Ferguson, Fendt, and Iseki brands.

Mr. McCormick, along with AGCO ANZ staff, thanked the Deartech company and family, for their involvement in supporting the Massey Ferguson and Fendt brands in the Hawkes Bay over the last 12 years.

John Tulloch thanked AGCO for the confidence shown in their plans to develop a local business,

and for the opportunity to be part of the ever-increasing growth and diversity in products required for modern day farming practices.

“The brands that AGCO offer are all of premium quality and offer one of the most extensive product lines available to professional farmers, large and small alike, and contractors in the region. We have confidence in the agricultural industry and look forward to offering these quality brands to existing and new TFM Tractors customers,” John said.

TFM Tractors will be operating from their new premises at 1217 Omahu Road, Hastings. Their phone number is 06 879 7536.

TFM TRACTORS – “EXPANDING INTO HAWKES BAY”

TFM Tractors is now the dedicated AGCO dealer for Massey Ferguson, Fendt and Iseki in Hastings and the surrounding districts. TFM Tractors invites you to visit their new Hastings premises and experienced team of staff to explore the range of professional mowing equipment, compact and mid- to high-horsepower tractors, and hay tools. Please contact us for all your Massey Ferguson, Fendt and Iseki sales, parts and service needs.

Page 48: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

48 MACHINERY & PRODUCTS

Pluck’s latest offering – a new pond stirrer.

Little maintenance needed

A NEW effluent pond stir-rer to be released soon will require limited mainte-nance and carry a two-year warranty – almost unheard of in the dairy industry, says manufacturer Plucks Engineering.

The company, which invented and developed the cone-shaped ‘enviro saucer’ pond, expects its new offering to impress farmers.

Plucks first introduced its range of effluent pond stirrers four years ago, using only 1.1kW of power for 24/7 stirring to keep

ponds biologically active by supporting oxygen and day light input. By keeping most of the solids in sus-pension all the time, such a pond can be pumped out any time.

The new stirrers retain the low-powered motors and large blade under the surface, as well as the drive system and steady bearings above the water line,

But the new models are now powered through an in-line planetary gearbox/motor combo, supported by two 40mm steady bear-

ings that do not need greasing. They also have a new style of anti-snag blade.

The machines arrive onfarm ready to be assembled and afloat “in just a few minutes”, complete with under frame blade protection to prevent damage to the pond liner.

The new range will be offered in a motor range from 0.75kW for small sumps and tanks to 5.5kW for ponds typically 2 mil-lion litres and bigger.Tel. 0800 PLUCKS

ROUND BALES and four-foot squares are said to be handled with equal ease by Hustler Equipment’s new “low cost” bale grab, the CXR Softhands.

“The CXR has a fixed hand, designed specifically for handling round bales, although the shape also allows four-foot squares to be handled with ease,” the company says.

Going for a cheaper fixed-hand unit pointed to limitations so the company consulted operators during its search for the “ultimate shape”.

Four key aspects of traditional fixed-hand design stood out as needing change: less bale damage to bale shape, wrap and adjacent bales; ease of use when load-ing and stacking; more versatility to handle bales in any position; and tough enough to withstand New Zealand conditions.

“The slim hands make stacking easier, the com-pact design offers unbeatable visibility, and the new patented technology, with details to be released in December, is a major leap in bale handling equip-ment,” Hustler says.

An optional equaliser bar will keep the hands moving simultaneously for extra safety and precise bale control.

The machine carries a two-year warranty.Price $3100+GST including Euro hitch brackets

and free freight nationwide.Tel. 0800 487 853 www.hustlerequipment.co.nz

Hay bales handled easier

THE ARTICLE in Rural News (Nov 19) about strip tillage was excellent except for one mistake that detracted from its otherwise positive impact.

“The advantage over direct drilling is that you get better establishment because you are getting worked soil around a seed, versus dropping a seed into

a hard slot which is hit-and-miss,”… would be factual if it was referring to certain classes of direct drilling machines and their openers, but definitely not all.

It is grossly inaccurate when applied to other direct drilling machines.

There is strong published science and equally strong

field confirmation that when an inverted-T-shaped seed slot is created and covered properly during direct drilling.

The seed and seedling soil environment will almost invariably be superior to that created in tilled soil and strip-tilled soil, and certainly in poorly made, non-inverted-T shapes of direct

drilled slots.That is not an opinion. It is a

verifiable fact, which I would be happy to elaborate on at any time. The addition of the word “some” before “direct drilling” near the beginning of the statement would have rescued the article.Dr John BakerFeilding

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Page 49: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

MACHINERY & PRODUCTS 49

The Wallings feed out 10 tonnes a day.

Abbey’s twin vertical feeder range is designed to handle tough conditions.

Feeding out made easierWAIKATO FARMERS Rebecca and Len Walling are dishing out 10 tonnes of feed daily using an Irish-made Abbey VF (vertical feeder) 2850 mixer wagon, reports the supplier, Farm-gard.

“We feed out 10 tonnes a day, twice a day, so we need a good, reliable machine that is going to last,” Rebecca says. “Our

old mixer wagon wasn’t able to handle a 10 tonne payload when we added molasses so we started looking at new machines.”

The VF2850 is the larg-est in the Abbey range – 28m3. It consistently delivers 10 t on the Wall-ings’ 900-cow farm at Wharepuhunga south of Te Awamutu. They milk twice daily, every day of

the year.“Our old machine was

supposed to produce a 10 tonne payload but this was totally dependent on the sort of product you put in. The Abbey can reach the 10 tonne payload with any feed combination.”

Abbey’s twin vertical feeder range is designed to handle tough conditions, and is constructed using

the highest grades of materials, Farmgard says.

The machines can handle precision-chop silage, large round or square bales of silage, hay, straw and roots. Addi-tional feed products such as maize and meal can be added at any stage of the mixing process.

Wallings mix mainly maize silage, grass silage, palm kernel and molas-ses; sometimes straw, minerals, and kiwifruit, apples and bread when available.

“We mix this up twice a day and feed on the feed pad and into feed troughs all year round. It’s a fairly basic diet but it works for our system and is cost effective,” says Rebecca.

The shape of the mixing auger and tub is said to ensure a “perfect” blend of ingredients.

The machine’s Digi-

Star weighing system allows consistency of the feed ration and lets the operator know “exactly what’s going on”. The mixed feed is then evenly discharged, with the feed flow rate controlled by a hydraulically operated dis-charge door.

The VF2850 has a rear

self-steering axle allow-ing it to turn it in a tight circle without having to manoeuvre and back around.

Rebecca and Len Wall-ing are principals of Wall-ing Contractors, servicing the Waikato district. “We know machinery pretty well and the importance of

it doing the job efficiently and reliably.”

Abbey also makes slurry tankers and muck spreaders.

Wallings bought the Abbey machine from Waikato Tractors.Tel. 09 275 5555 or 03 437 9000 [email protected]

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Page 50: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

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Ph 0800 33 66 66www.powerupnz.co.nz

DIESEL FXDiesel fuel booster

Diesel FX was designed to address the issues of injector fouling and fuel filter plugging common with today’s modern ULSD fuels and biodiesel blends.

Protect Your Pump From Costly Repairs -

Keep Your Water The Best It Can Be

Chlorine Tablet & Dispenser• Prevents most algae build up & blockages

Stainless Steel Screen• Filters your water supply

Dam Weed Guard• Floats in your water supply (dam/creek) • Protects your filter from weeds & floating debris

• Are you having trouble with rubbish getting into your farm pump? • Weeds building up on your water filter? • Algae blocking your water lines?

Contact: Peter and Sheryl TonkinP: 09 4317276 • M: 027 353 7274 • www.damweedguard.co.nz

Dam Weed Guard

Screen Filter with Stainless Steel mesh fits inside Dam Weed Guard

Please add $10 Freight per order

$66 $42$48valued at $200 valued at

$140

valued at $120

Rainwalk Rainwear SALE! Waterproof, Lightweight, Highly Breathable!

Sale Ends15 December 2013(while stocks last)

Buffalo Boot Sale $80!

For details contact: JULIE BEECH

Ph 09-307 [email protected]

YOUR ADVERT HERE

Keep up with the latest stories from by following us atGET SOCIAL WITH RURALNEWS

facebook.com/ruralnews twitter.com/Rural_News

BREAKING NEWS MANAGEMENT STORIES MARKETS & TRENDS MACHINERY REVIEWS

Page 51: Rural News 3 Dec 2013

RURAL NEWS // DECEMBER 3, 2013

RURAL TRADER 51

ONE STOP WATER SHOP

Culvert Pipes Phone 0800 625 826

for your nearest stockistNew Zealand’s CHEAPEST Culvert Pipes!

FREE joiners supplied on request.

• Lightweight, easy to install

• Made from polyethylene

McKee Plastics, Mahinui Street, Feilding Phone 06 323 4181 Fax 06 323 4183

McKee Plastics, 231 Kahikatea Drive, Hamilton. Ph 07 847 [email protected] www.mckeeplastics.co.nz

300mm x 6 metre ................................ $410

400mm x 6 metre ................................ $515

500mm x 6 metre ................................ $690

600mm x 6 metre ................................ $925

800mm x 6 metre .............................. $1399

1000mm x 6 metre ............................ $2175

1200mm x 6 metre ............................ $3475

Joinerssupplied FREE with culvert

pipes

ALL PRICES INCLUDE G.S.T.

Business and extended stay specialists.

Your perfect travel companion.

RURAL NEWS Weekend Special

Only $99.00 per nightOFFER IS FOR FRIDAY & SATURDAY

NIGHTS ONLY

Great Central LocationFor bookings up until January 30th 2014

Tel 04 931 2999 | 0800 50 80 11 www.questonlambton.co.nz

!• Pest Free puts 50Hz pulse along power cables • Rats and mice stress, dehydrate, exit • No harm to humans, pets, computers, etc.• Models to suit buildings/plant 200sq.m to 1000sq.m• NSW-made, patented, science proven• Used in ten countries• Two-year warranty

• 100% 60-DAY MONEY-BACK GUARANTEE

STOP RATSNESTING IN HOMES, BUILDINGS, MACHINERY

TWO WAYS TO ORDER/PAY: 1) POST: cheque to N. Keating telling us the product(s) you want,

plus your name, address and telephone number. 2) INTERNET: direct credit ASB 12 3039 0893559 00

(your surname as reference) PLUS telephone or email us, saying which product(s) you want.

Pest Free Domestic for homes, garages, etc to 200sq,m – $159.90 incl. GST & post.

Pest Free PRO for large homes, small offices & factories, etc to 400sq.m – $399.90 incl. GST & post.Pest Free Commercial for dairy sheds, grain mills, factories, etc – $1800 incl. GST & post.

STOP RATS with Pest FreeBuy with confidence from authorised rural sales agent N + J Keating, 70 Rimu Street, New Lynn, Auckland 0600. Tel. 09 833 1931(cell 021 230 1863); email [email protected]

TOP DOG BOX

Phone 0800 625 826www.mckeeplastics.co.nz

❱❱ Accommodates up to 4 dogs❱❱ 6 individual air vents❱❱ Removable centre board❱❱ 2 lockable galvanised gates❱❱ In-house drainage❱❱ Tie down lugs on each side❱❱ Fits all wellside &

flatdeck utes (2 models)❱❱ Raised floor for insulation

$699 inclGST

$495 inclGST

SINGLE DOG BOXNew

DOLOMITENZ’s fi nest BioGro certifi ed

Mg fertiliserFor a delivered price call...

0800 436 566

0800 38 44 50

22HP 42” / 26HP 48”USA MADE / LOW NZ PRICE FULL RANGE AVAILABLE

NEW

ZERO TURNMOWERS

FROM

$6,590PLUS GST

• The magic eye sheepjetter since 1989• Quality construction and options• Get the contractors choice• Direct from the manufacturer• Efficient application and unequalled cost savings

FLY OR LICE PROBLEM?

Phone 07 573 8512 • www.electrodip.com

Unique self adjusting

sides

• ATV Carrier Mats • Exit/Entry Areas• Calf Trailers • Horse Floats & Trucks

• Weigh Platforms • Bale Mats • Comfort Mats for Wet & Dry Areas

• Utility Deck Matting

Phone: 0800 80 8570www.burgessmatting.co.nz

Rubber Safety Matting

Advantage Plastics Rangiora

call: 0800 668 534 or (03) 313 5750

Get upto date news at www.ruralnews.co.nzLATEST STORIES EVERY DAY

Page 52: Rural News 3 Dec 2013

AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ®Registered trademark. MSD Animal Health. Phone 0800 800 543. SPV-343-2013

ELE-

0093

9A-R

N

THERE’S NO BETTER WAY TO SECURE YOUR RETURNSHigh demand for lambs is expected to continue – and when it comes to improving lamb numbers, one of the best ways is through vaccination. Diseases like Toxoplasma, Campylobacter and Salmonella can cause major losses.

Vaccination helps you protect your ewes and increase the number of lambs born, but you’ll need to plan ahead.

With our range of sheep performance vaccines it’s easy to get the level of performance you want from your flock and secure your returns for next season.

Visit www.sheepvax.co.nz and talk to your vet about a vaccination plan today.