rural news 20 january 2015

40
JANUARY 20, 2015: ISSUE 576 www.ruralnews.co.nz RURAL NEWS MANAGEMENT Lupin gains traction in high country. PAGE 24 MACHINERY Revamped farm bike ticks all the right boxes. PAGE 33 ANIMAL HEALTH Vets’ national body backs animal welfare reforms. PAGE 31 TO ALL FARMERS, FOR ALL FARMERS HIGH AND DRY! Opuha Water chief executive Tony McCormick and local farmer David Williams (front) pictured at the South Canterbury lake last week. The Opuha lake is well below its normal level; meaning irrigation and other restrictions in the area. The prolonged dry spell is starting to bite in the wider South Canterbury region, as well as other parts of the country. For a full report turn to page 6-7 CHAIR BACKS STATUS QUO Feds to revamp fees FEDERATED FARMERS is looking at changing its subscription structure to better reflect the changing nature of farm land ownership. National president William Rolleston says people owning multi- ple farms and corporate farming has reduced the lobby’s membership num- bers. He says Feds is looking at finding a subscription structure that is fair and equitable to all. “If one person has a number of farms it doesn’t seem reasonable that they pay a single farm subscription when some- one has, say, just one 400ha property and is paying the same,” he told Rural News. “We have to package it in a way that the members feel is equitable and they all feel they are getting value. If you own five farms you are getting five times the value from Federated Farmers as opposed to having one – the value is spread across all of those farms.” Rolleston says the Federation has some farmers now paying on a per farm basis and believes this could be way to go. He doesn’t believe the farmer lobby will go the same way as the dairy sector, which levies members on their produc- tion. He says a subscription based on a ‘per farm’ basis is likely, but adds there are anomalies with a person with 5000 stock units paying the same as someone with 30,000 SUs. In the past, the Federation has focused on the number of members it has and Rolleston says such a concept in today’s farming environment is “a bit silly”. He says the Federation has been working with corporate farmers on an arrangement to reflect the benefits they receive from their membership. The Feds board will consider a pro- posal for the national council in June. The council comprises all the provincial presidents and the board. They have the final say on policy issues. PETER BURKE [email protected] SILVER FERN Farms’ chairman Rob Hewett has effectively backed him- self and Herstall Ulrich in the direc- tor election requesting a vote for “no change” to the board. The cooperative’s debt reduction and Plate-to-Pasture programmes are “winning strategies” and it is important they are not derailed, he told Rural News. “We want to invest more in the revenue growth parts of our busi- ness, driving our consumer and hotel-restaurant offers into selected high-potential markets around the world.” The $100m capital raise that Goldman Sachs is scoping for the cooperative would drive such investment, as well as debt reduc- tion, and shareholders will be kept informed and given a clear invest- ment value proposition when appropriate, he says. “Increased equity is investment in growth and at the same time as paying down debt, turbo-charges the business.” Hewett acknowledges industry restructure “remains to be dealt with” and says SFF is committed to “sensible rationalisation discus- sions” with any industry participant. – More on SFF elections page 5 ANDREW SWALLOW That’s what works out here. Unlike them, we know this has nothing to do with a small primate and everything to do with making life on the land easier. Not that it means you can avoid hard work. But what you can avoid is getting stuck with someone who has no idea what you’re on about. So why not talk to an insurer who speaks your language instead. Ask around about us, or for some advice call 0800 366 466. FMG0027_RN Go on, ask your city insurer about your post rammer's monkey.

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Rural News 20 January 2015

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Page 1: Rural News 20 January 2015

JANUARY 20, 2015: ISSUE 576 www.ruralnews.co.nz

RURALNEWS

MANAGEMENTLupin gains traction in high country. PAGE 24

MACHINERYRevamped farm bike ticks all the right boxes. PAGE 33 ANIMAL HEALTH

Vets’ national body backs animal welfare

reforms.PAGE 31

TO ALL FARMERS, FOR ALL FARMERS

HIGH AND DRY!Opuha Water chief executive Tony McCormick and local farmer David Williams (front) pictured at the South Canterbury lake last week. The Opuha lake is well below its normal level; meaning irrigation and other restrictions in the area. The prolonged dry spell is starting to bite in the wider South Canterbury region, as well as other parts of the country. For a full report turn to page 6-7

CHAIR BACKS STATUS QUO

Feds to revamp feesFEDERATED FARMERS is looking at changing its subscription structure to better reflect the changing nature of farm land ownership.

National president William Rolleston says people owning multi-ple farms and corporate farming has reduced the lobby’s membership num-bers. He says Feds is looking at finding a subscription structure that is fair and equitable to all.

“If one person has a number of farms it doesn’t seem reasonable that they pay a single farm subscription when some-one has, say, just one 400ha property

and is paying the same,” he told Rural News.

“We have to package it in a way that the members feel is equitable and they all feel they are getting value. If you own five farms you are getting five times the value from Federated Farmers as opposed to having one – the value is spread across all of those farms.”

Rolleston says the Federation has some farmers now paying on a per farm

basis and believes this could be way to go. He doesn’t believe the farmer lobby will go the same way as the dairy sector, which levies members on their produc-tion. He says a subscription based on a ‘per farm’ basis is likely, but adds there are anomalies with a person with 5000 stock units paying the same as someone with 30,000 SUs.

In the past, the Federation has focused on the number of members it

has and Rolleston says such a concept in today’s farming environment is “a bit silly”. He says the Federation has been working with corporate farmers on an arrangement to reflect the benefits they receive from their membership.

The Feds board will consider a pro-posal for the national council in June. The council comprises all the provincial presidents and the board. They have the final say on policy issues.

PETER BURKE

[email protected]

SILVER FERN Farms’ chairman Rob Hewett has effectively backed him-self and Herstall Ulrich in the direc-tor election requesting a vote for “no change” to the board.

The cooperative’s debt reduction and Plate-to-Pasture programmes are “winning strategies” and it is important they are not derailed, he told Rural News.

“We want to invest more in the revenue growth parts of our busi-ness, driving our consumer and hotel-restaurant offers into selected high-potential markets around the world.”

The $100m capital raise that Goldman Sachs is scoping for the cooperative would drive such investment, as well as debt reduc-tion, and shareholders will be kept informed and given a clear invest-ment value proposition when appropriate, he says.

“Increased equity is investment in growth and at the same time as paying down debt, turbo-charges the business.”

Hewett acknowledges industry restructure “remains to be dealt with” and says SFF is committed to “sensible rationalisation discus-sions” with any industry participant.

– More on SFF elections page 5

ANDREW SWALLOW

That’s what works out here.

Unlike them, we know this has nothing to do with a small primate and everything to do with making life on the land easier. Not that it means you can avoid hard work. But what you can avoid is getting stuck with someone who has no idea what you’re on about. So why not talk to an insurer who speaks your language instead. Ask around about us, or for some advice call 0800 366 466.

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Page 2: Rural News 20 January 2015

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Page 3: Rural News 20 January 2015

HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622

Phone: 09-307 0399 Fax: 09-307 0122

POSTAL ADDRESSPO Box 331100, Takapuna, Auckland 0740

Published by: Rural News Group

Printed by: PMP Print

CONTACTS

Editorial: [email protected]

Advertising material: [email protected]

Rural News online: www.ruralnews.co.nz

Subscriptions: [email protected]

ABC audited circulation 81,188 as at 30.06.2014

ISSUE 576www.ruralnews.co.nz

NEWS�������������������������������������1-13

WORLD ��������������������������������������14

MARKETS ������������������������� 16-17

AGRIBUSINESS ��������������� 18-19

HOUND, EDNA ����������������������� 20

CONTACTS ������������������������������ 20

OPINION ���������������������������� 20-23

MANAGEMENT �������������� 24-27

ANIMAL HEALTH ���������� 29-32

MACHINERY AND PRODUCTS ���������������������� 33-37

RURAL TRADER ������������38-39

RURAL NEWS // JANUARY 20, 2015

NEWS 3

FRESH MEAT!

INDEPENDENT MEAT company Affco’s chief executive Hamish Simpson has become the latest high profile departure from the industry.

He follows former Silver Fern Farms chief executive Keith Cooper and former Alliance head Grant Cuff, who stepped down late last year.

Simpson left last month after eight years at the helm of Affco, owned by South Island-based Tall-eys Group.

Simpson told Affco suppliers it was time for a change; he wants to explore other opportunities.

“I have enjoyed my time with AFFCO and leave with the company in good heart. We are profitable, financially sound, have modern well placed plants and, most importantly, a strong team to carry the business forward.”

At Alliance, new chief executive David Surveyor starts this month after a season as executive general manager of Laminex, a subsidiary of Fletcher Building.

He says he is excited about his new job. “Alliance Group has blazed a trail for New Zealand exporters for many years, not just in traditional markets, but also China and more recently Brazil and India.

“It is a privilege to be leading the business into its next phase. I aim to build on what has already been achieved to further improve the Alliance Group’s performance and returns to the company’s share-holder suppliers.”

At the country’s biggest meat company, Silver Fern Farms, Dean Hamilton is moving into the chief executive role, replacing Cooper, who has resigned after eight years in the top job and a total of 24 years at the cooperative.

Hamilton joined SFF as chief strategy officer in April 2014.

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[email protected]

Beef exports soar!FOR THE first time ever, New Zealand beef exports (October-December 2014) have exceeded lamb exports in value.

Figures just released by Beef + Lamb NZ show that beef and veal exports for the quarter were $599 million – a staggering 47.9% above the same period last year.

In the same quarter lamb earned $526 million – a modest 2% increase on the same period last year.

The unprecedented rise in beef exports has the economist searching the records. BLNZ chief economist Andrew Burt says the tonnage of beef and veal for October-December is

78,000t – up 14.4%.“This reflects record high

international beef prices, driven by a beef shortage in the US and high slaughter numbers in New Zealand partly due to low dairy prices,” Burt told Rural News.

“The additional beef New Zealand exported was essentially directed to North America, particularly to the US. North America accounted for 58% of New Zealand beef and veal exports in the first quarter of the 2014-15 season, up from 45% in the same period last season.”

Also noteworthy is that beef prices for the last five years have hovered about $6000/tonne. But for the first quarter of this year they are suddenly

up 29% higher at $7670, which Burt attributes to the strength of the North American market. For the same quarter last season the price was $5940 a tonne.

Most of the beef going into the US market is for manufacturing. Burt says any farmers selling bulls and heifers will be doing well, but it might be harder for those trying to buy weaners.

Meanwhile lamb exports are making modest increases. The $9140/t for lamb during October-December is 8.7% up on the same period last year, while the tonnage at 57,500 is down 6.2%.

The tonnage of mutton exports for the quarter is also down by 4.4% to 17,200 on last year. The value of mutton exports at $93 million is just over 1% down.

PETER BURKE

[email protected]

THE SLUMP in dairy prices has unsur-prisingly sent confidence crashing down in key dairy regions.

According to Westpac’s quarterly regional economic survey, consumers in Waikato and Southland have fallen back into pessimism for the first time since late 2012/early 2013, when Waikato was gripped by drought and Southland was facing the possible closure of the Tiwai Point aluminium smelter.

But in Canterbury, the second-big-gest dairying region, economic con-fidence rose slightly in the quarter, making it by far the most optimistic.

Westpac senior economist Felix Delbruck says reconstruction activity is helping confidence in Canterbury, though the region’s economic confi-dence has moderated from the dizzy-ing heights of a year ago.

Delbruck says in most other regions, economic confidence has also lost some of its lustre in the last six months, when much of the country seemed to be bask-ing in the prospects of a stellar dairy season.

“Optimists continue to outnumber

Dairy drop takes its toll

pessimists by a decent margin in Auck-land, Wellington and Bay of Plenty, but elsewhere the mood is now fairly sub-dued.”

The last Global Dairy Trade auction resulted in average dairy prices rising 3.6% higher than the previous event.

Compared to the last trading event, all commodity prices firmed with signif-icant movements in butter (up 13.2%) and buttermilk powder (up 10.5%);

anhydrous milk fat was up 6.8%, rennet casein up 4.2%, cheddar up 3.2%, skim milk powder up 2.8% and whole milk powder up 1.6%.

However, Fonterra says the GDT Price Index for the financial year to date was down 45% on the same period last year.

The next GDT auction will be this week.

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Page 4: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

4 NEWS

MORE FIRE BANS LIKELY

AN AWARD winning Waikato sharemilker who copped a $16,875 fine for mistakes made in an envi-ronmental farm clean-up should never have been taken to court, says a Waikato Regional coun-cillor.

Te Aroha dairy farmer and councillor Stu Hus-band plans community meetings to try to change Waikato Regional Council enforcement policy.

Bas Nelis, 2010 Waikato Sharemilker of the Year and winner of an environmental award, is reeling after being hit with the fine in the Envi-ronment Court in Decem-ber for authorising work to dig out what he thought was classed a drain on the Okoroire farm. The work removed pest plants and replaced them with natives.

Nelis was prosecuted for illegally disturbing 1.5km of riverbed and doing earthworks without

PAM TIPA

[email protected]

THE ENVIRONMENT Court judgment shows the regional council recommended that Nelis be convicted and discharged.

But Judge Melanie Harland decided to fine Nelis’ company Hold the Gold for various reasons including Nelis ignoring an ecologist report advising against bulldozing. She accepted he did not intend to cause environmental harm but says he should have known better given his environmental credentials.

Judge Harland gained the impression the inves-tigation officers at the regional council have been unfairly criticised for their actions in relation to the prosecution.

“I recognise that this decision in all likelihood will not be welcomed by all those in the dairy farming industry,” Judge Harland says about fining Nelis.

But this needed to be balanced against community interest and fairness in these cases.

COURT FOLLOW COUNCIL’S CALL

Conservation – minded farmer whacked

THE HOT dry weather has seen total fire bans imposed on many parts of the South Island and Wairarapa will soon have one, says Federated Farm-ers national vice president Anders Crofoot.

Permits are now required for fires in the open in Wairarapa.

Crofoot is the chief rural fire officer at Castle-point, where he farms, and he says Wairarapa is having a typical dry summer. Many farmers moved early to de-stock.

Fire is a real risk for farmers and when things ignite it doesn’t take long for a fire to take off. “In normal circumstances you might have a grass fire which goes on until it hits grazed pasture then it peters out. But when things get this dry it carries on a helluva lot further,” he told Rural News.

“When we have really dry conditions – low humid-ity and hot temperatures – that creates huge fire risks. So the bans are just trying to eliminate initial ignition. We have already seen a couple of fires by the side of the road, where someone was having prob-lems and pulled off into long grass and the hot muf-fler started things.”

Getting adequate water is the biggest problem for rural firefighters. Crofoot says the difficulties occur when a fire starts spreading across big areas and it’s hard to get people and water to them.

“So well maintained pastures are a good firebreak. I’ve seen situations where the fire just came up to the grazed fence and stopped.”

But once a fire spreads into trees or bush the only effective way of putting it out is to use a helicopter with a monsoon bucket or a fixed wing aircraft with a fire retardant.

PETER BURKE

[email protected]

adequate erosion and sedi-ment controls. The ‘farm drain’ was a direct tribu-tary of the upper Waihou River described by Fish and Game as one of New Zealand’s best spring-fed rivers.

Nelis told Rural News the council knew about his plans and didn’t tell him he needed resource consent.

There’s a fine line between what needs consent and what doesn’t onfarm. He can’t understand the heavy handed treatment – including a search warrant and police – when they were cooperating. “They were pretty nasty about it all.”

Nelis, who pleaded guilty but did not expect

to cop such a big fine, says he hopes other farmers learn from his experience. He offered to hold edu-cational meetings at the site for other farmers to understand their respon-sibilities under the RMA but this was rejected by the council.

“The whole process was extremely wasteful and there could be a far more productive way. We are substantially out of pocket now and the water-way hasn’t benefitted. We could have spent all that money we spent on legal fees and fines on planting. We are out of pocket as well with the low payout, so it will cut back on our planting for the next season.”

Nelis put his own money into the environ-mental project although there was no financial gain for him, and farm owner Woodstock invested $84,000 in the restoration work but now also has legal bills, although he was

not prosecuted.Waikato Regional

Council chief executive Vaughan Payne plans to meet with an Okoroire farming leader to discuss setting up a working party.

“I’m keen for the group to come up with sugges-tions for what the regional council needs to do to help build a positive and constructive relation-ship with farmers within the context of our role as a regulatory agency,” he told Rural News.

“We are the only organisation with responsibility for sustainable management of natural resources. This means we can’t, and won’t, ignore actions that significantly damage our environment. Our aim is to work with farmers to make sure they know the rules and get the support and advice they need to look after land and water.”

Meanwhile Cr Hus-band soon independently plans community meet-

ings to get a change in approach. “I am not com-fortable with the policies we have in place, but this action is not pointed at individual staff.”

He wants a more user friendly approach. “That doesn’t mean letting

people pour anything into the drains or doing what they like, but having clearer policy so we can actually work with people. The way the policies are written up they can be interpreted in a million different ways.”

Anders Crofoot

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Page 5: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

NEWS 5

SFF election heats up

IS HISTORY set to repeat itself in Silver Fern Farms’ director elections?

Six years ago, backed by the Meat Industry Action Group (MIAG), Herstall Ulrich ousted then chairman Reese Hart. Now, current chairman Rob Hewett has to seek re-election as his three year term is up, as does Ulrich.

They face a chal-lenge from large-scale West Otago farmer Fiona Hancox, who is backed by today’s equivalent of MIAG, Meat Industry Excellence, so it’s possible the chair could be ousted again.

However, this time the ginger group has said it is not seeking to unseat the chairman, so unless shareholders ignore MIE’s missive, it’s effectively a Hancox versus Ulrich battle for the second seat up for re-election on the board.

Ulrich acknowledges that’s the way he sees it too and while he was

elected on an industry reform ticket, he doesn’t believe his time is up.

“At the outset I said I thought three terms [as a director] is the ideal. It gives you time to learn the complexities of the busi-ness so you can have a significant input but not become stale.”

He also points out industry reform wasn’t the only ticket he stood on six years ago. “I stood on two things, and most people forget the second one, which was the one I spent more time talking about and that was gen-erating consumer pull. It is what Silver Fern Farms now calls Plate to Pas-ture. That’s alive and well and getting traction in the market place. I believe that’s the bit that’s going to change the industry.”

The case for consoli-dation of the sector is still strong from a process-ing and procurement effi-ciency point of view, he adds, but he now ques-

With the company seeking to raise capital, and the meat industry’s performance still a subject of concern for many farmers, this year’s Silver Fern Farms director election is sure to stimulate widespread interest. Andrew Swallow reports.

tions whether building scale would strengthen New Zealand’s market position, as he and his MIAG colleagues once believed it would.

“Look at Fonterra and dairy prices today. Value add is where we have to be.” That said, he believes the ideal meat industry structure would be to have one large farmer owned cooperative processing most stock and running a strongly branded, con-sumer focussed marketing strategy.

Voting in Silver Fern Farms’ director election closes 3pm February 13. Voting papers will be posted to eligible (basically current supplier) shareholders next week but online voting is open. The 2014 annual report will be released online January 30. Election results are announced at or prior to the company’s 2014 annual meeting in Dunedin, February 18.

ELECTION DETAIL

Market before merger: incumbent SFF director seek-ing re-election Herstall Ulrich sees consumer-led value add strategies as the priority.

“Are we going to achieve that in the near future? I don’t know. [Alli-ance chairman] Murray Taggart has made it very clear he doesn’t want a bar of it. We’re probably just as far off achieving struc-tural change as ever…. MIE says time is running out and I don’t totally disagree but you’ve got to have a willing partner.”

Ulrich adds he knows Taggart reasonably well. “So if we were to get into talks that background of a solid friendship and colle-

gial relationship would be useful.”

He also points out he has cooperative merger experience through his time as a director of CRT predecessor, Greenfields.

Another possible reason why shareholders should vote for him, albeit a minor one in compar-ison, would be to retain a regional spread at the board table, he says.

“If I lose, we would have three southern South Island directors, and two North Island.

Even though we got rid of wards there is still a small case for a geograph-ical spread… it does help understand shareholder thinking.”

Reflecting on Silver Fern’s 2014 result, he says the cooperative has “just come out of a couple of years with poor results”. “We managed to turn it around this year but only just. With the interest we’re paying that’s not surprising.”

He’d like to see the $100m of capital SFF is

seeking to raise to reduce that interest cost come from shareholders but even though sheep and beef farmers are “maybe a little more profitable and attitudes have changed” he doubts the full sum could be raised from farmers.

“We are fundamentally a hybrid [cooperative] now anyway,” he notes.

The key to keeping control of such a cooper-ative is a strong constitu-tion and Silver Fern Fars’ is just that, he adds.

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RURAL NEWS // JANUARY 20, 2015

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Winter the worry for South IslandSTOCK PRICES have tumbled and feed values are starting to climb as dry becomes drought in the east of the South Island.

An onshore drizzle brought a few millime-tres of relief last week but after six months with less than half normal rainfall, a serious soak’s needed to get grass growing, not to mention winter feed crops which badly need a drink.

Even those with irriga-tion aren’t immune; water restrictions are spreading and some schemes have stopped already.

One of the worst affected is Opuha Water (OWL) in South Canter-bury with the foothills feed lake at its lowest for January in 16 years oper-ation.

About a quarter of OWL’s 16,000ha is on total stop, some of it since new year, and the bal-ance is on 50% restric-tion. Chief executive Tony McCormick says unless there’s a deluge in Opu-ha’s headwaters soon, with only 25% of lake stor-age left the water will run out for all by February 28.

“In 2001 during the hydro [power] crisis the lake got to its lowest, and there was one other time that it was lower than now but again that was much later in the season.”

Once all irrigation stops, releases from the dam will be matched to inflows, so it’s likely the river downstream will drop dramatically. As of last week it would have been at 2.7 cumecs but for lake reserves augment-ing the flow to 3.5 cumecs, explains McCormick.

He believes a season like this highlights the need for more access to alpine water in South Canterbury; the Waitaki-fed Morven and Glenavy scheme in the region’s extreme south, and the newly commissioned Ran-gitata South in the north, fare much better.

In North Otago it’s equally dry but again the Waitaki-fed irriga-tion schemes have so far avoided restrictions.

Moving south, barring the Clutha, most other out-of-river takes in Otago have been restricted for months, and total stops are imminent if not already in place.

“We’re on a self-imposed one-day-in-four roster so the river doesn’t go below minimum flows,” Lyndon Strang of the Kakanui Irrigators Collective told Rural News last week.

The 30 or so farm-

ers who draw from the river have been on some restriction since Novem-ber and Strang says he can’t recall it ever having been so dry, so early.

“We’ve still got the bigger part of summer to go and February is tradi-tionally a hot month here. Every day that goes by, especially the hot ones, means there’s less coming in the top of the river.”

A cold spring saw a lot less baleage and silage put

away and availability of alternatives such as barley is also a concern. “A lot of dryland crops have not done well at all.”

Federated Farmers North Otago president Richard Strowger echoes that.

“We just didn’t have a spring and there wasn’t a lot of supplement made…. How much this drought will bite will depend on the autumn. Winter feed crops are very poor, especially those which were just sprayed out and drilled and didn’t go through a fallow to accu-mulate moisture.”

Most sheep and beef farmers in the region acted early to stave off the immediate shortfall in feed, offloading cull ewes and lambs, so for now there’s no need for a drought declaration, he believes.

“Just at the moment we’re sitting OK. It’s the long-term effect that’s the concern.”

Strowger’s counterpart in South Canterbury, Ivon Hurst, also believes there’s no need for a ministerial drought declaration yet, even though “most of the criteria for one are already there”.

A drought commit-tee of industry represen-tatives and advisors was formed prior to Christmas and following a meeting circulated advice on miti-gation measures to Feds’ members and posted it in a local newspaper.

Hurst says another meeting is scheduled for January 28 but if need be that could be pulled for-ward. “If we have a week of nor’west then we’d need to step in and call it earlier.”

ANDREW SWALLOWMonth Average rainfall

(mm)2014/2015

rainfall (mm)% of average

July 42 15 36

August 47 14 30

September 37 27 73

October 47 27 57

November 51 29 57

December 57 (281) 16 28

January 54 8 15(to Jan 2014 incl)

Total 335 136 41

Page 7: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

NEWS: THE BIG DRY 7

THE CHANCES of the controversial Ruatani-wha dam irrigation scheme going ahead are still very good, says the Hawkes Bay Regional Council chair.

But Fenton Wilson concedes the High Court ruling in December to direct the board of inquiry (BOI) – which heard the consent appli-cations for the scheme – to review its decision has placed the scheme in limbo.

The High Court ruled that the BOI erred in law in some parts of its decision and directed it to review this.

Wilson’s not sure exactly how many farmers have signed up to buy water from the scheme, but says farmers are still signing up.

“If the final conditions of the consents are workable and the conditions imposed are able to be met then the scheme will go ahead. If the conditions are too tough, I don’t want to spec-ulate on the outcome.”

Wilson still thinks the chances of the scheme going ahead are very good. But the consenting process is taking longer than antic-ipated.

With the consent issue now back in the hands of the BOI it’s too hard to speculate on any timeframe, he says. But if the consents are right this will give farmers and investors con-fidence to support the scheme. – Peter Burke

PETER BURKE

[email protected]

Nervous in the east, west okSHEEP AND beef farmers on the North Island east coast are get-ting nervous about the lack of rain, according to Gisborne-based AgFirst consultant Peter Andrew.

The region has had little rain for a long time, the last big fall being just before Christmas, he told Rural News.

“We had a very dry November/December, but most farmers had reasonably good pasture length when they came into this dry patch. Things were in good order stockwise and in pasture length, but farmers are all getting nervous now.”

The lack of significant rain and a lot of days with temperatures in the 20’s hasn’t helped, he says. Interest-

ingly, there hasn’t been a lot of wind, but the heat has been tough on clo-vers.

Positive for the region has been the good beef schedule. Farmers feared prices would drop and were “proactive” in their beef sales, but with the schedule holding morale is higher.

“Even though it is getting dry, farmers are realistic and positive about the great returns in beef. On the East Coast we run at almost 50% cattle ratios and strong beef prices have put a smile on farmers’ faces.”

Lamb sales are also starting to pick up after what Andrew describes as a “normal” December. The dry, hot weather has forestalled major animal health issues.

“It’s just that we’re running out of clover. We’re getting back to a good old Gisborne summer; this would be about normal for us at this time the year.”

On the west coast, in Taranaki, dairy farmers are having a better than average season.

Stephen Hopkinson of Taranaki Vets, Hawera, says this is despite the fact the region is now starting to dry out. Rain fell on Boxing Day and pas-ture growth rates are good including clover.

“Animal health has been good all the way through and cow condition is also good. Pasture growth in October

wasn’t too flash, but November and December have been really good.”

Hopkinson says maize crops went in late and any grass silage cut now will probably have a lot of seed in it. He says while the amount of silage produced in the region will be down on last year, which was “exceptional”, this season will still be a good one.

FARMERS NEED to be aware of the possible lim-itations of international weather apps on their smartphones, says Phil Duncan of weatherwatch.co.nz.

While not discourag-ing farmers from using the apps, he says the problem is they lack any human input.

“So a farmer can get a lot of false hope from those apps which may say ‘80%

chance of rain for four days’, but in fact you only get a drizzle patch or some-thing,” Duncan explains. “So that’s where you need a New Zealand forecaster to come in and add local

knowledge. Duncan says at pres-

ent there is a touch of El Nino, which is helping to lift the air pressure around New Zealand and the Tasman Sea. Present pat-

terns suggest New Zealand is heading for a ‘spring like westerly’ with showers on the west coast and hot and dry and sunny conditions on the east coast.

– Peter Burke

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Weather apps limited – forecaster

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Page 8: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

8 NEWS

2015’s crystal ball a little clouded

MILK PRICES may have stabilised and will rebound next season, beef prices will hold and horticulture, particularly kiwifruit, could be the star performer this year.

Amid his crystal ball gazing for 2015, ASB rural economist Nathan Penny says the bank is still holding its $4.70/kgMS forecast – which it predicted for this season before Fonterra moved there as well. But the ASB predicts a rebound to $6/kgMS next season, comparing it to a similar cycle in 2010-2012.

“We think things have stabilised and are on the up, given that production is slowing and exports are coming back from the different major exporters. The initial signs are that supply is coming back to meet demand which is bit weak in places like China and now some of the oil producing countries. We will stick with that $4.70/kgMS for now. But we wouldn’t rule out lower.”

With drought risk and beef prices still high, although back from

November’s records, it will make sense for dairy farmers in some regions to dry off early and cull poor performers. Production will slow quickly later into the summer and early autumn.

Penny says beef prices are likely to hold this season and into the next with the US still rebuilding its herd.

He predicts that lamb will probably go sideways this year. Europe and China are weaker on the demand side. Australian’s sheep sector is still struggling so there won’t be much lamb coming through until later in the season. Production-wise New Zealand is only looking at about 1% increase in lamb production.

“Wool prices have weakened this year and may still do so given Europe, China and Japan are all weaker.”

He says horticulture has more momentum, particularly with the Psa recovery. Production is rebounding for Gold and prices are holding up. “Kiwifruit along with wine are probably the areas with the most

momentum.”The New Zealand domestic

economy is good whereas in the world economy China is in a soft patch, and Europe and Japan are still struggling to fix themselves. China’s problems are temporary, the others are longer term. The US is doing reasonably well.

“With the exception of dairy, which is hitting a lean year, domestically things aren’t too bad and activity is pretty strong.

“Some of our exports markets in agriculture are a bit weaker than they have been but medium and long term that story still holds for emerging economy demand,” Penny says.

“We are confident in the medium and long term prospects for agriculture, there are some things to work through this year and dairy farmers particularly will need to be diligent and manage through that and get advice with a view that things will rebound next season and beyond.”

He says the sheep and beef sectors are doing better and the medium prospects are positive.

PAM [email protected]

OK IS ACTUALLY GOOD!ANZ’S CHIEF economist Cameron Bagrie stands by his recent comments that 2015 will be a year of “pure economic expansion” despite the low milk payout.

“I think there is enough petrol in New Zealand’s tank to handle one year of a sub-par dairy payout,” he told Rural News. “I’d be more cautious if it was to be two years of a sub $5 payout.

“At the moment the central case seems to be that we will see a bit of a rebound. If that rebound doesn’t eventuate I will alter my

economic assessment. Outside of dairying our commodity prices generally are doing pretty well.”

Bagrie says New Zealand’s growth is slowing but from a gallop to a canter. He says when the economy falls into a hole as in did in 2009-10, the recovery is called growth but it takes longer for activity to reach a broader level and that’s economic expansion. That’s what he now sees.

“Things out there are still a bit grumbly but if I compare New Zealand to most of the OECD or

across the Western World – boy, we look pretty solid.”

New Zealand’s economy has challenges but those look manageable. Dairy is having a tough time and there are drought concerns in some regions. Retail is another sector that’s not great.

“With the economy in general we are not knocking the ball out of the park but we are doing ok,” Bagrie adds. “And ‘ok’ compared to an awful lot of places around the globe is the modern ‘spectacular’.”

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Page 9: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

NEWS 9Water, rain big issues - FedsLow payout

puts farmers under pressure

THE RISK of farmers suffering depression and commit-ting suicide is greater with the lower dairy payout this season, says Rural GP Network chair Dr Jo Scott-Jones.

At least four farmers are reported to have committed suicide since Fonterra low-ered its farmgate milk price late last year.

Scott-Jones says farmers need to know support and other services are available within their local com-munities.

“The general prac-tices are well aware of this issue and are keen to help people because sui-cide is not an option and being depressed is not something to be ashamed of,” he told Rural News.

“There are services avail-able through the Rural Support Trusts around the country and in many ways these can be the first organisation for farmers who are under pressure to go to. They are run by farmers for farmers and they have links to appropriate services to sup-port people through a whole range of issues – financial, drought and flooding, and mental health issues.”

Scott-Jones, a GP in Opotiki, says there is clearly a dif-ference between health services in rural and urban cen-tres. It’s much easier for people in urban centres where population numbers support higher levels of service.

“But we do our best in the rural community and people shouldn’t feel neglected. Mental health issues are things that people often keep to themselves, fearing they are going to take up people’s time. They think we are terri-bly busy, which we are, but we are open and keen to see anyone facing these sorts of difficulties in the rural com-munity.”

Scott-Jones sees ‘male stoicism’ as a potential problem – farmers revert to a ‘can do, number 8 wire, we can fix it’ approach to life. Farmers may feel they should be able to deal with stuff themselves, but, in fact, mental health issues require that they seek help.

“From my experience, the pressure in rural areas results from things beyond a farmer’s control,” Scott-Jones says. “The weather, price of milksolids, effects of drought and flooding and things such as Psa.

“Many of the things that happen to people in rural com-munities are imposed from without and they don’t have any control over it. There is no element of lifestyle choice in suffering a drought.”

Scott-Jones says his message to farmers is that they need to recognise when they are having a problem. Symptoms include cutting themselves off from friends, becoming angry with their workers or showing frustration towards their animals.

Talk to somebody, he urges – the Rural Health Support Network or the local GP.

For help call 0800 787254

Dr Jo Scott-Jones says farmers need to seek help.

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THE PROSPECTS for 2015 would be a lot better if there was some rain falling, says Federated Farm-ers president William Rolleston.

Rolleston told Rural News the big question mark hanging over the industry concerns the dairy payout. All eyes will be on the global dairy trade auctions in the next few weeks and that result will be “reasonably telling”.

Meanwhile, Rolleston believes the outlook for sheep and beef farmers is not bad, though parts

of South Canterbury are dry. “They’re having to sell early

and that’s not always the best use of prices,” he says.

Another big issue is water and Rolleston says this will play out dif-ferently across the country.

“Decisions on water are being made at a regional level not a national level. Over the next 12 months or so that will be in Waikato, Hawkes Bay, Canterbury and Southland. There is an oppor-tunity for water to be shared more

equitably, particularly as we see things developing here in Canter-bury, and in Waikato. As the water resource gets to its fully allocated state we have to try to think of dif-ferent ways of dealing with the issue of allocation.”

Rolleston says the concept of ‘first in first served’ no longer works and people are beginning to see a need to work out with fellow farmers in their catchment the best ways to deal with water issues.

With the dairy sector having a

high profile and seen by many as dominating the primary sector, Rolleston believes that there needs to be a balance.

“A diverse agricultural economy is a resilient economy and we’d be worried if there was a dominance of any one sector,” he says.

Rolleston points out that in the early part of the last century South-land was full of dairy farms and then became full of sheep farmers.

– Peter Burke

Page 10: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

10 NEWS

Agritech export revenue tops $1.2b NEW ZEALAND agritech exports earned their pro-ducers $1.2 billion in 2013. $1 billion had long been the annual export target of the sector.

Research completed last September for New Zealand Trade and Enter-

prise shows New Zea-land as a leading supplier of products, equipment and services for farming. The research has better defined the sector’s offer-ings and determined its value to the national economy and its compar-

ative strength in an inter-national context

Products include animal and seed genetics, fertiliser and agri-chem-icals, fencing supplies, farm tools, machinery and systems, and pumping and irrigation.

Animal health prod-ucts, medicines and pre-ventative treatments were the largest export earners ($311m), followed by fenc-ing supplies and equip-ment, and machinery and systems (each $307m).

NZTE says demand

is growing for NZ agri-tech products. Australia and the US are the largest buyers of our products. And exports to Canada, China, South Korea and Saudi Arabia are increas-ing.

The research shows agritech R&D is increas-ing, NZTE says. “The research also compares New Zealand’s agritech production with other similar sized agricultural nations including Israel and Ireland. It found that New Zealand’s agritech sector is well positioned to take advantage of increasing global demand

for meat and dairy.”Primary Industries

Minister Nathan Guy says the removal of the dairy quota system is open-ing up opportunities in Europe and the free trade deal with China, along with China’s substan-tial demand for meat and dairy products, is provid-ing local agritech compa-nies with opportunities.

“New Zealand is one of the world’s most effi-cient primary producers, and this report shows our expertise and technol-ogy in this area is in grow-ing demand around the world.”

Economic Develop-ment Minister Steven Joyce notes that New Zealand has historically underperformed in agri-tech exports compared with other advanced agri-cultural nations.

“However our exports are now growing more quickly than our com-petitors’, and opportuni-ties for more growth exist in a wide range of mar-kets. Europe, China and South America stand out as the biggest areas of potential growth.”

The research was com-pleted in September 2014 by Coriolis.

• Animal health – $311m • Fencing supplies and equipments – $307m• Machinery and systems – $307m• Animal genetics – $48m • Plant genetics – $233m

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Economic Development Minister Steven Joyce says that historically NZ’s Agri-tech exports had underperformed compared with other advanced agricultural nations, but these are now growing more quickly than our competitors.

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Page 12: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

12 NEWS

While you were working... or on holiday...A former Rural Women president and a Mata-mata Hereford breeder were among seven people recognised in the new year honours for services

related to agriculture.Made Officers of the

New Zealand Order of Merit were former Rural Women president from 2011 to 2013, Liz Evans,

of Blenheim, for services to rural women; Richard Lucas of Christchurch for services to agriculture and Janette Wills of Matamata for services to the beef

industry.A former journalist,

Evans also served in other Rural Woman positions and in Federated Farmers. Wills was the first woman

councillor then president for the New Zealand Hereford Association board. She was then elected as the first woman secretary-general of

If you signed off from the news over Christmas and new year, here’s a broad roundup of the main news in the ag sector.

the World Hereford Council.

David Willock, JP, of Gisborne, was made a member of the New Zea-land Order of Merit for services to agriculture and the community.

Queens Service Medals went to Douglas Bull, JP, of Whakatane, for services to dairy farming and the

community; John Hard-ing, of Taihape, for ser-vices to agriculture and aviation and Ian Noble, of Kati Kati, for services to farming and the com-munity.

Harding (79) is a former topdressing pilot in the Central Plateau area who was owner-operator of Rangitikei Air Service.

New year honours for ag service

Prices were up 3.6% overall in the first Global Dairy Trade auction for 2015 on January 6.

The rise was across the board but the key product, whole milk powder, had a smaller rise of just 1.6%.

ASB is holding its milk price forecast for the 2014-15 season at $4.70/kgMS – the same level as Fonterra’s cur-rent forecast – but ANZ says the January 6 GDT lift was still not enough to hold that forecast.

ASB’s Nathan Penny says an expectation that dairy prices will rise over 2015 is built into the bank’s forecast.

Milk fat prices (AMF and butter) continued to stand out in the latest GDT on the back of their

exposure to the rela-tively healthy US dairy market, says Penny. Butter and AMF posted gains of 13.2% and 6.8% respectively, while BMP also rose over 10%.

“Overall prices kicked off 2015 46.1% lower than where they started 2014. WMP and SMP prices both sit over 50% lower than a year ago,” says Penny.

The next GDT event is this week, January 20.

Better start for dairy

Beef + Lamb NZ chair-man James Parsons is re-elected unopposed to his board seat in the Northern North Island electorate.

The seat came up for election by rotation; no contenders put their names forward.

Two nominations were received for the northern South Island electorate. The candidates are Nigel Harwood of Takaka and Phil Smith of Culverden.

Election day will be Friday, February 27. The election will be conducted by postal and internet ballot. Voting papers, along with information about the candidates, will be posted to registered voters on February 2.

To be eligible to vote, farmers will come from the northern South Island electorate and must have owned at least 250 sheep and/or 50 beef cattle and/or 100 dairy cattle on June 30, 2014. They must also be registered on the BLNZ electoral roll by 5pm on Thursday, January 29.

Visit beeflambnz.com/register or contact B+LNZ on 0800 233 352.

Parsons holds Beef + Lamb seat

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Page 13: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

NEWS 13

While you were working... or on holiday...Record per-hectare returns for Green and Organic Green kiwifruit are forecast this season as a combination of supply constraint, favourable market conditions and strong end-of-season sales leads to increased Zespri grower returns across all categories.

Per-hectare returns for Green growers are forecast at $52,987 and Organic Green at $42,207.

Zespri chief executive Lain Jager says the overall result reflects some one-off factors.

“Shortages of supply of Green kiwifruit from Chile and constrained supply of Gold kiwifruit from New Zealand have supported pricing,

while Zespri’s foreign exchange hedging policy has mitigated against the strong value of the New Zealand dollar.”

The result is a credit to the hard work and determination of the industry, Jager says.

“Our industry still faces challenges, as we continue the recovery from Psa, but we have much to be positive about.”

Zespri predicts record returns The much hated effluent

compliance monitoring by helicopter looks likely to stop under a new regime planned by the Waikato Regional Council.

Proposals approved in principle by councillors include an end to helicop-ter flyovers and routine visits by inspectors with-out an appointment. The plan was developed by a group of councillors and industry representatives.

Fonterra representa-tive Charlotte Rutherford says she had found the group process “positive and collaborative”.

Group member Cr Alan Livingston says many farmers were doing much better with effluent man-agement. “Significant changes have already been made, and are being made, with farm effluent sys-tems, and at considerable cost.”

End to helicopter monitoring

ASB has agreed to pay a $3.2m settlement over the marketing and sale of interest rate swaps to rural customers between 2005 and 2009.

The settlement will make available $2.7 million to compensate the 40 eligible customers who registered their complaints with the Commerce Commission.

ASB will also pay $250,000 to the commission’s costs and $250,000 to the Dairy Women’s Network.

The smaller settlement amount compared to the ANZ’s $19m settlement is because ASB chose not to increase farmers’ loan margins, meaning that the settlement relates primarily to early termination

fees paid by eligible customers. Secondly, the commission received a much smaller volume of complaints about ASB’s swaps.

Commerce Commission Chairman Dr Mark Berry says it is expected the 40 eligible farmers will be compensated for 100% of their reasonably recoverable losses.

An announcement on the outstanding Westpac case is expected early this year.

ASB to pay $3.2m in swaps settlementSmall profit

for Silver Fern FarmsSilver Fern Farms is reporting a net profit before tax for the year of $1.8 million, a $38.3 million improvement on the 2013 season.

Over the same period the company repaid $99 million debt.

Chairman Rob Hewett says Silver Fern Farms’ shareholders will be heartened to see audited confirma-tion of the turnaround in profitability. “This is a positive result, and confirms that the changes we’ve made to the business are setting us on the right track after two challeng-ing years. “Whilst the absolute level of profit at $1.8 million is unac-ceptable, it is a signpost on the path to where we need to get to.”

New milk sourcing company

A new milk sourcing company – backed by Fonterra but operating as a standalone entity -- is entering the dairy sector to compete with other milk processors for milk supply.

The company mymilk, in Christchurch, will for the first season at least source milk in Canterbury,

Otago and Southland. Chief executive Rich-ard Allen says mymilk is aimed at dairy farms that do not supply Fonterra.

“Farmers who want to supply Fonterra, but are not ready to purchase a shareholding, can apply to supply the co-operative though mymilk for a maxi-mum of five years.”

Lain Jager Mark Barry

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Look out for our Mono™ Longhaul Pumping System - available early 2015!

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Page 14: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

14 WORLD

UK farmers’ milk cheque delayed

IF YOU think New Zea-land dairy farmers are struggling with a low milk payout, then spare a thought for their UK counterparts.

Some UK farmers are not only being paid less for their milk; this month the largest farmer-owned milk proces-sor announced that milk cheques will in future

arrive two weeks later.First Milk, Scotland, is

also asking farmer share-holders to fork out more money to prop up the co-op’s balance sheet.

First Milk chairman and former UK Food and Rural Affairs Min-ister Jim Paice stunned farmers on January 2 by announcing that from February 1 farmers will receive 3c/L less for liquid pool milk and 5c/L less for manufacturing

pool milk.Following a backlash

from farmers and indus-try leaders, First Milk

backed down, revising it to a 3c/L reduction

for manufactur-ing pool milk and a

1c/L reduction for liquid pool.

Other milk proces-

sors have also cut prices; Danish

SUDESH KISSUN

[email protected]

cooperative and the UK’s largest dairy, Arla, is now paying farmers 52/L. In early 2014 milk fetched nearer to 66c/L for UK farmers.

Paice, who remains an MP in UK, says at farmer meetings held two months ago, the First Milk board was open about the losses that were accrued in the early months of this finan-cial year as the company dealt with rapidly falling markets.

First Milk has decided to rebuild the funda-mentals of the business ahead of the spring flush, he says, injecting more cash into the business to strengthen it for the spring flush.

“We understand that the milk payment defer-ral will cause concern for members as direct debits and payments will have been lined up against milk cheques.

National Farm-

ers Union UK president Meurig Raymond says the timing of the announce-ment meant a serious burden for farmers and damage to cash flow at an expensive and demanding time of year for costs.

While it is paramount that the financial sta-bility of First Milk is secured, the co-op must meet farmers and explain the rationale behind the changes.

“Make no mistake, I have heard from NFU members, some who are extremely anxious and I have taken those views to the chairman of First Milk during discussions.

The Scottish Govern-ment says it is watch-ing First Milk’s moves to strengthen its balance sheet.

NFU Scotland presi-dent Nigel Miller says the changes will place extraor-dinary pressure on many dairy farms in Scotland.

FIRST MILK is the UK’s only major dairy company, 100% owned by British farmers, supplying dairy products and ingredients to national and interna-tional markets.

Its products include block cheeses, soft cheeses, raw milk, butter, skimmed milk powder, whey proteins and sports nutrition brands.

It generates annual revenues of $1 billion. Head-quartered in Glasgow it has seven manufacturing sites in England, Scotland and Wales.

FIRST MILK FACTS

With lamb prices strong, major losses of lambs to abortions from Campylobacter and Toxoplasmosis is simply a risk not worth taking.Both diseases are prevalent on New Zealand farms – and potentially on yours. Protect against disease and protect your profi ts with Toxovax® and Campyvax4® this season.Ordering Campyvax from your vet at the same time as you’re ordering Toxovax can help protect your fl ock against the two major causes of sheep abortion.

Your vet will help tailor a vaccination plan that’s right for your farm.

To fi nd out more, check out sheepvax.co.nz

AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ACVM No: A4769, A9535 . ®Registered trademark. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz. NZ/SPV/0914/0003

CONTROL THE RISK OF CAMPYLOBACTER

CONTROL THE RISK OF TOXOPLASMOSIS

CONTROL THE RISK OF ABORTION STORMS, AND MAKE THE MOST OF HIGH DEMAND FOR LAMBS.

With lamb prices strong, major losses of lambs to abortions from Campylobacter and Toxoplasmosis is simply a risk not and Toxoplasmosis is simply a risk not and Toxoplasmosisworth taking.Both diseases are prevalent on New Zealand farms – and potentially on yours. Protect against disease and protect your profi ts with Toxovax® and Campyvax4®

this season.Ordering Campyvax from your vet at the same time as you’re ordering Toxovax can help protect your fl ock against the two major causes of sheep abortion.

Your vet will help tailor a vaccination plan that’s right for your farm.

To fi nd out more, check out sheepvax.co.nz

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Page 16: Rural News 20 January 2015

MARKET SNAPSHOT LAMB MARKET TRENDSBEEF MARKET TRENDS

RURAL NEWS // JANUARY 20, 2015

www.ruralnews.co.nz

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

Check out our websites

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

Meat North Island South Island

c/kgCWTChange

c/kgLast Week

Changec/kg

Last Week

Lamb - PM 16.0kg -10 5.48 -10 5.13

Steer - P2 300kg -5 5.45 -10 5.10

Bull - M2 300kg -5 5.60 -10 5.10

Venison - AP 60kg -10 6.40 -15 6.30

North Island 16.0kg M Lamb Price

$4.0

$5.0

$6.0

$7.0

Oct Nov Dec Jan Feb Mar

5yr Ave Last Year This Year

South Island 16.0kg M Lamb Price

$3.5

$4.5

$5.5

$6.5

Oct Nov Dec Jan Feb Mar

5yr Ave Last Year This Year

North Island 300kg Bull Price

$3.7

$4.2

$4.7

$5.2

$5.7

$6.2

Oct Nov Dec Jan Feb Mar

5yr Ave

Last Year

This Year

South Island 300kg Steer Price

$3.5

$4.0

$4.5

$5.0

$5.5

Oct Nov Dec Jan Feb Mar

5yr Ave

Last Year

This Year

North Island 60kg Stag Price

$6.0

$6.5

$7.0

$7.5

$8.0

$8.5

Oct Nov Dec Jan Feb Mar

5yr Ave

Last Year

This Year

South Island 60kg Stag Price

$6.0

$6.5

$7.0

$7.5

$8.0

$8.5

Oct Nov Dec Jan Feb Mar

5yr Ave

Last Year

This Year

BEEF PRICES

c/kgCWT Change Last Week

2 Wks Ago

Last Year

NI P2 Steer - 300kg -5 5.45 5.50 4.55

M2 Bull - 300kg -5 5.60 5.65 4.50

P2 Cow - 230kg -5 4.55 4.60 3.50

M Cow - 200kg -5 4.25 4.30 3.45

Local Trade - 230kg -10 5.30 5.40 4.50

SI P2 Steer - 300kg -10 5.10 5.20 4.28

M2 Bull - 300kg -10 5.10 5.20 4.18

P2 Cow - 230kg -10 3.90 4.00 3.05

M Cow - 200kg -10 3.90 4.00 2.90

Local Trade - 230kg -10 5.10 5.20 4.30

Slaughter

Export Market Demand

Change Last Week 2 Wks Ago Last Year 5yr Ave

95CL US$/lb +3 2.58 2.55 2.06 1.97

NZ$/kg +6 7.27 7.21 5.50 5.48

Procurement IndicatorChange 2Wks Ago 3 Wks

Ago Last Year 5yr Ave

% Returned NI -3% 77.7% 80.4% 82.66% 76.1%

% Returned SI -1% 71.5% 72.8% 75.9% 69.8%

Demand Indicator - US 95CL Beef

$1.80

$2.00

$2.20

$2.40

$2.60

$2.80

$3.00

$3.20

Oct Nov Dec Jan Feb Mar

Last Year

This Year

Procurement Indicator - South I.

50%

60%

70%

80%

90%

Oct Dec Feb

Last YearThis Year

Procurement Indicator - North I.

60%

70%

80%

90%

Oct Dec Feb

Last Year

This Year

South Island Weekly Cattle Kill

k

5k

10k

15k

20k

25k

Oct Nov Dec Jan Feb Mar

5yr Ave

Last Year

This Year

North Island Weekly Cattle Kill

k

10k

20k

30k

40k

50k

60k

Oct Nov Dec Jan Feb Mar

5yr Ave

Last Year

This Year

LAMB PRICES

c/kgCWTChange Last

Week2 Wks

AgoLast Year

NI Lamb YM - 13.5kg -10 5.46 5.56 5.56

PM - 16.0kg -10 5.48 5.58 5.58

PX - 19.0kg -10 5.50 5.60 5.60

PH - 22.0kg -10 5.51 5.61 5.61

Mutton MX1 - 21kg -5 3.35 3.40 3.40

SI Lamb YM - 13.5kg -10 5.13 5.23 5.29

PM - 16.0kg -10 5.13 5.23 5.31

PX - 19.0kg -10 5.13 5.23 5.33

PH - 22.0kg -10 5.13 5.23 5.34

Mutton MX1 - 21kg -10 2.88 2.98 3.28

Slaughter

Export Market DemandChange Last

Week2 Wks

Ago Last Year 5yr Ave

UK Leg £/lb n/c 1.95 1.95 2.00 1.87

NZ$/kg n/c 8.40 8.40 8.12 8.50

Procurement IndicatorChange 2Wks

Ago3 Wks

Ago Last Year 5yr Ave

% Returned NI -2% 67.9% 70.2% 70.8% 67.6%

% Returned SI -4% 62.5% 66.7% 67.5% 68.2%

Venison Prices

Change LastWeek

2 Wks Ago Last Year 5yr Ave

NI Stag - 60kg -10 6.40 6.50 6.35 6.95

SI Stag - 60kg -15 6.30 6.45 6.40 7.10

Demand Indicator - UK Leg Price

£1.00£1.25£1.50£1.75£2.00£2.25£2.50

Oct Nov Dec Jan Feb Mar

Last Year

This Year

Procurement Indicator - South I.

45%

55%

65%

75%

85%

Oct Nov Dec Jan Feb Mar

Last Year

This Year

Procurement Indicator - North I.

50%

60%

70%

80%

90%

Oct Nov Dec Jan Feb Mar

Last Year

This Year

North Island Weekly Lamb Kill

k

100k

200k

300k

400k

Oct Nov Dec Jan Feb Mar

5yr AveLast YearThis Year

South Island Weekly Lamb Kill

k100k200k300k400k500k600k

Oct Nov Dec Jan Feb Mar

Page 17: Rural News 20 January 2015

NEWS PRICE WATCH

RURAL NEWS // JANUARY 20, 2015

www.ruralnews.co.nz

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

Check out our websites

BEEF

Beef prices start 2015 on softer tone

North Island beef dipped further last week as delays of up to two weeks were reported at some processing plants around the North Island. The growing dry conditions and falling prices are causing the space issues as cattle flood into the plants. 300kg cwt bull prices are back to $5.60/kg while 300kg cwt steer prices have eased back to average $5.45/kg. It is a similar situation in the South Island where beef prices remain under pressure. 300kg cwt bull and steer prices reduced to average $5.10/kg last week. There are reports prices have fallen below the $5/kg mark at some processors. Delays of 10-12 days are common at most processing plants as the dry weather has prompted many to offload.

Have US imported prices stabilised?

After coming under so much pressure in late 2014, US imported prices have quietly ticked higher this week. While the lift is considered marginal, it is certainly a better than the slide in prices we witnessed through late last year. 95CL bull prices were up to US$2.58/lb while 90CL cow prices were US$2.41/lb. US Dom Cow prices on the other hand remain strong at US$2.99/lb. Slaughter rates in the US remain extremely tight adding to already tight supplies. The unnerving fact is how prices react when Australia returns to the market. NZ exports in January are also expected to be stronger than normal given the heavy flow of bull into plants at present. Longer term fundamentals for the US job remain strong and will start to shine through later in the year as imported supplies into the US tighten.

LAMB

Lamb prices take hit

Lamb prices plummeted through the Christmas break with prices in the South Island taking a 20-40c/kg hit. Prices last week were down to an average of $5.15/kg gross. Space issues at processing plants appear to be the main driver of the slumping prices. Spreading dry conditions mean lambs are being drafted down to lighter weights adding to the processing delays which are now up to 10 days long. Prices in the North Island have also eased but generally by only 20c/kg since Christmas. Prices last week were back to an average of $5.60/kg gross. The dry conditions are starting to weigh on farmers minds with many opting to offload now. This has impacted on space at processing plants with delays of up to 7-10 days common. If the dry conditions intensify then expect prices to remain under pressure right through the month.

Thousands of store lambs needing new homes

Store lamb prices are dropping through the week as the volume on sale far outweighs the demand from purchasers. Paddock prices for store lambs in the NI eased to around $2.50/kg last week as lambs pour out of the drier regions and struggle to find new homes. Saleyards are also bursting at the seams as farmers cut stock numbers. The extremely dry conditions in the South Island are also prompting farmers to offload store stock with lambs the first to go. Prices across the board were down to an average of $2.15/kg last week after dropping by 20c/kg during the previous week. The usually active Southland market is still 2 weeks to a month behind due to adverse weather conditions which have limited lamb finishing operations. .

DAIRY

Weak demand from China still impacting WMP

Whole milk powder (WMP) prices look to have stabilised with prices holding into the New Year. This is despite mixed demand from China. While general demand from China remains slow, some of the bigger buyers are once again showing some interest. Interest for WMP from other markets remains active. The sharp lift in the butter market may be fortelling of prices rises in the weeks ahead.

WOOL PRICE WATCH DAIRY PRICE WATCH

Indicators in NZ$ Change 08-Jan 18-Dec Last Year Indicators in NZ$/T Change Last 2

WksPrev. 2

WksLast Year

Coarse Xbred Indic. -15 4.88 5.03 5.03 Butter +247 4488 4241 5241

Fine Xbred Indicator -15 5.23 5.38 5.22 Skim Milk Powder -7 3078 3084 5753

Lamb Indicator n/c 6.21 6.21 5.45 Whole Milk Powder -7 3142 3149 6190

Mid Micron Indic. - - - 7.28 Cheddar -10 4745 4755 5904

Overseas Price Indicators Overseas Price Indicators

Indicators in US$/kg Change 08-Jan 18-Dec Last Year Indicators in US$/T Change Last 2

WksPrev. 2

WksLast Year

Coarse Xbred Indicator -8 3.80 3.87 4.17 Butter +200 3500 3300 4350Fine Xbred Indicator -7 4.07 4.14 4.32 Skim Milk Powder n/c 2400 2400 4775Lamb Indicator +5 4.83 4.78 4.51 Whole Milk Powder n/c 2450 2450 5138Mid Micron Indicator - - - 6.03 Cheddar n/c 3700 3700 4900

Wool Indicator Trends

450

500

550

600

650

Jan Mar May Jul Sep Nov

CXI FXI LI

Coarse Xbred Indictor in US$

250

300

350

400

450

500

550

Oct Nov Dec Jan Feb Mar

Last YearThis Year

Coarse Xbred Indicator

300

400

500

600

Oct Nov Dec Jan Feb Mar

Last YearThis Year

Dairy Prices Trends

3,000

4,000

5,000

6,000

7,000

Jan Mar May Jul Sep

SMP WMPBut. Ched.

Whole Milk Powder Price in US$/T

2,0002,5003,0003,5004,0004,5005,0005,500

Oct Nov Dec Jan Feb Mar

Last YearThis Year

Whole Milk Powder Price (NZ$)

2,500

3,500

4,500

5,500

6,500

7,500

Oct Nov Dec Jan Feb Mar

Last YearThis Year

Wool Indicator in US$

250

300

350

400

450

500

550

Jan Mar May Jul Sep Nov

CXI FXI LI

Dairy Prices in US$/Tonne

2,000

3,000

4,000

5,000

6,000

Jan Mar May Jul Sep Nov

SMP WMP.But .Ched

CURRENCY WATCH

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

US dollar 0.782 0.780 0.778 0.825

Euro 0.663 0.644 0.628 0.606

UK pound 0.518 0.501 0.495 0.501

Aus dollar 0.963 0.954 0.943 0.927

Japan yen 93.58 93.40 92.64 86.53

Euro

0.56

0.60

0.64

0.68

Oct Nov Dec Jan Feb Mar

Last Year

This Year

UK Pound

0.46

0.48

0.50

0.52

0.54

Oct Nov Dec Jan Feb Mar

Last Year

This Year

US Dollar

0.70

0.75

0.80

0.85

0.90

Oct Nov Dec Jan Feb Mar

Last Year

This Year

Page 18: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

DAIRY FARMERS should beef up balance sheets to cope with global milk price volatility, says the head of herd improve-ment company CRV.

Dutch-based CRV Holdings chief execu-tive Roald van Noort says price fluctuations are becoming the norm and farmers must be prepared.

He made the com-ments at the recent open-ing of a new domestic and export-approved bovine semen production and logistics centre for New Zealand subsidiary CRV Ambreed in Hamilton.

CRV, a leading global exporter of semen, also had to cope with erratic milk prices, says van Noort.

“Dairy farmers [must] beef up their balance

sheet like we do as a busi-ness; we also have to cope with the same issues,” van Noort told Rural News. “Fortunately we have a broad portfolio and have business all over the world; that’s how we spread our risk.”

He is forecasting a rebound in dairy prices; demand is bigger than supply and will stay that way for another decade.

However, “unforseen political incidents” are throwing a spanner in the works. “Political issues like the Ukraine conflict aren’t something you can anticipate.”

China has also over-stocked dairy products and this is pressing prices down, he adds.

“I would call for greater transparency in the industry, so that all farmers are connected to world prices on a daily

basis. Stocking practices need to be transparent as well.”

The CRV Bellevue production and logistics centre, on the outskirts of Hamilton, gives the com-pany more capacity in bovine semen products. It has a semen collection

facility, a semen process-ing laboratory, storage for export and domes-tic products, a warehouse with farmer AI banks and 38ha of grazing.

Van Noort says CRV is focused on sustain-able growth, necessitat-ing R&D and innovation

to enable dairy farmers to produce more with less.

“We are proud today to open these premises. In this location we have everything we need to help produce more pro-tein with less resources for the population in 2015 – in a clean, safe and

inspiring way.“We have biosecurity

here that is unrivalled in the southern hemi-sphere, and for CRV glob-ally.”

Primary Industries Minister Nathan Guy acknowledged CRV’s role in improving the effi-ciency of the dairy indus-try in New Zealand and around the world.

The new centre is a vote of confidence in the New Zealand dairy indus-try, he says. “[CRV] has a long-standing invest-ment here in the dairy industry. I believe New Zealand farmers are the

best in the world, and one of the best and big-gest contributors to our increased productivity is indeed genetics.”

CRV Ambreed manag-ing director Angus Haslett says the centre’s open-ing marks the start of an

exciting era for the com-pany.

“The CRV Bellevue production and logis-tics centre was developed to the highest stan-dards required to ensure our business meets its domestic and export compliance, biosecurity requirements and animal welfare standards,” says Haslett.

CRV Ambreed is part of the third-largest artifi-cial breeding company in the world with about 25% market share in New Zea-land. It exports semen to South America, South Africa, Australia, parts of North America, the UK and Ireland.

The company annu-ally distributes about 1.8 million straws of semen in New Zealand and over-seas.

18 AGRIBUSINESS

Beef up to counter dairy dropSUDESH KISSUN

[email protected]

@rural_newsfacebook.com/ruralnews

CRV Holdings chief executive Roald van Noort (left) CRV Ambreed managing director Angus Haslett and CRV Holdings board member Noel van Leeuwe at the new logistics centre in Hamilton.

Call 0800 804 458 to find your local dealer. Or visit our website, www.giltrapag.co.nz

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Page 19: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

AGRIBUSINESS 19NZ COLLECTION KEEPS ON GROWINGMILK COLLECTION in New Zealand is tracking 4% higher than last year.

Fonterra says it has collected 972 million kgMS for seven months to December 31, 4% higher than the same period last year.

But the rate of growth has continued to slow, largely driven by reduced South Island production triggered by dry weather.

North Island collection in December reached 125 million kgMS, 4% higher than December last season. Some rain fell in many dairy regions, supporting grass growth and increased milk produc-tion.

South Island collection in December reached 76 million kgMS, just 1% higher than December last season.

Growing conditions have improved in Southland after a cold start to the season. However, dry conditions are impacting pasture growth across the east coast of the South Island.

Dry weather stems Aussie milk flows

PROLONGED DRY weather is begin-ning to impact milk production in parts of Australia.

Queensland and South Australia are worst hit and production is fall-ing after a strong start to the 2014-15 season.

According to Fonterra, milk collec-tion in Australia for the six months to December 31 reached 71 million kgMS, 6% higher than the same period last season.

But collection in December was 3% lower than the previous December – 12.5 million kgMS.

Following a strong start to the season, production has slowed as dry conditions impact pasture growth across most of south east Australia,” Fonterra says. “Supplementary feed-ing has increased due to low pasture availability and irrigation in Tasmania has commenced earlier than last year.”

Dairy Australia says despite the

onset of dry weather, milk production continues to grow compared with the previous year.

Figures released by Dairy Australia last month show milk production was up 3% in November compared with the previous year; year-to-date production was up 3.5%.

Tasmania again drove much of

the increase with an 11.9% increase in November to take its year-to-date increase to 13.8%.

NSW (up 7.9%), Western Australia (up 5.2%) and Victoria (up 1.9%) also showed growth.

But Queensland (down 5.6%) and South Australia (down 2.4%) contin-ued their downward trajectory.

The tight season in western Victo-ria is also starting to have an impact with production down there 3.1%. Strong growth in Gippsland (up 7%) saw it overtake western Victoria as the biggest Victoria supply region in November. In northern Victoria, despite dry conditions and increasing water prices, production is up 1.8%.

SUDESH KISSUN

[email protected]

Dry weather is starting to impact milk production in parts of Australia.

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Page 20: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

THE HOUNDWant to share your opinion or

gossip with the Hound? Send your emails to:

[email protected]

EDITORIAL EDNA

20 OPINION

“Your mother’s trifle wasn’t up to much this year!”

Marvellous!THE HOUND hears that Richie Benaud, legendary Aussie test cricket captain and commentator, is joining Australia’s annual lamb crusade, which calls on all Aussies to get together over lamb this Australia Day (Jan 26). As one of the great arid continent’s national treasures, Benaud will join Lambassador Sam Kekovich on the meaty mission. “To me, Australia Day is the perfect excuse to get together with friends and family over a BBQ and tuck into some delicious lamb chops,” the beige-suited one said. Your old mate reckons that Beef+Lamb NZ could do worse than emulate our trans-Tasman cousin’s lamb promotion idea.

Xmas presentsYour canine crusader swears every year, as sure as Christmas comes on December 25, there are news releases put out by various compa-nies on December 23 or 24 that smack of the insti-gators trying to bury bad news. Last year’s crop included: ASB’s $3.2m interest rate swap settle-ment, DairyNZ’s toxic swede statement and Silver Fern Farms’ pitiful profit announcement that caught your old mate’s attention. Although – to be fair – the ASB news came from the Commerce Commission, so the timing may have had nothing to do with the bank.

Fiery FrogsFRENCH FARMERS set fire to tax and insurance offices in protest about government inaction over falling living standards stemming from bad crops and Russian food import bans. The fiery Froggie farmers used tractors and trailers to dump arti-chokes, cauliflowers and manure in the streets and they smashed windows in Brittany. The Hound notes that French farmers routinely protest govern-ment’s tax policies and inaction on policies that offer relief for the farming industry and wonders how unpopular it would make their NZ counter-parts in this country if they engaged in similar actions.

Rule Change?THE HOUND under-stands that some Fonterra shareholder/suppliers are less than happy with the co-op’s plan to allow non-members to supply it with milk – sparking fears that it could end up eroding the group’s co-opera-tive base. Late last year, Fonterra formed a subsid-iary – mymilk – to take in more milk without suppliers having to buy shares in the co-opera-tive. Some shareholders believe the co-op has “shifted the goal posts” with mymilk and had not adequately consulted its farmers.

No Bruce!THE HOUND reckons – despite farming being the backbone of the country – the sector does poorly when it comes to people in the industry gaining recognition. A case in point is this year’s new year honours list in which only a couple of people associated with the ag sector received a gong. Your canine crusader wonders why the sector is so neglected for honours when any number of sportspeople, arty-farty types and even current MPs gained recognition this year. Meanwhile, your old mate also questions why former Fed Farmers president Bruce Wills was not recognised.

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RURALNEWS

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Journey aheadA NEW year and a new – while yet familiar – set of challenges face New Zealand’s agricul-tural sector.

Already with 2015 only just begun we see Canterbury and other eastern parts of the coun-try facing a long, dry summer. Meanwhile, Fon-terra is struggling to meet its forecast payout of $4.70/kgMS and the red meat sector – especially sheep – is merely treading water.

As Waikato University’s Jacqueline Row-arth so eloquently puts it in her column on the facing page, water is the burning issue for New Zealand.

So-called environmentalists and other inter-est groups want to stymie almost every pro-posed irrigation scheme. Witness the ongoing battle faced by the proponents of the Ruatani-wha dam in Hawkes Bay.

Remember, the crucial issue in New Zealand is not water, but water storage.

Again, as Rowarth points out, “New Zealand receives 608 billion cubic metres of water annu-ally, but uses only 1.8%. Just over half of that 1.8% is used in irrigation, 23% by industry, 17% in drinking water and 7% is used by stock. It is the 597 billion cubic metres of water currently running out to sea that is of concern.”

The challenge for the agri-sector and those of us reliant on it is to ensure that facts like these are seen and heard by the general popu-lation. Too often the public get to hear only the emotive stuff pushed by groups like Forest & Bird and/or Fish & Game, where often the facts are not allowed in the way of their arguments.

No doubt dairy farmers will have a much tougher season this coming year than the past few. But ill-informed media reports imply the entire industry is on the brink of collapse and the country’s economy not far behind it.

History shows that all commodity sectors experience highs and lows. Unfortunately, dairy is currently experiencing the latter – after a couple of stellar seasons.

Meanwhile, to misquote Mark Twain: ‘Reports of sheep meat prices and the sector rising from the dead have been greatly exag-gerated’. Sure, prices have come up, but this was off an unsustainably low base and some sort of reform/rationalisation for the sector is badly needed.

Like every other year, Rural News will cover the challenges facing the farming sector and continue to inform, entertain and inspire read-ers. Again we look forward to journeying with you.

Page 21: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

OPINION 21

Water will remain a key issue2015 HAS been declared the International Year of the Soil by the United Nations, but for New Zea-land it is water that is the burning issue.

Water quantity and quality have been in the headlines throughout the holiday season. Heavy rainfall in some areas, drought in others and concerns about ‘pollution’ everywhere – valid or not.

Launching the Land Air Water Aote-aroa (LAWA) website in December, Minister Nick Smith pointed out that it was beaches in urban areas that were attract-ing attention over safety for swimming. Early in the new year it was, again, the Piha lagoon that made the news because of high E. coli later tracked to leak-ing septic tanks.

Water quality is a New Zealand issue; national

standards for water qual-ity announced by the gov-ernment last year are designed to improve the way fresh water is man-aged.

In particular, the ‘The National Policy State-ment for Freshwater Man-agement 2011’ requires that councils set freshwa-ter objectives for fresh-water bodies that reflect national and local aspi-rations, and to set flow, allocation and water qual-ity limits to ensure those objectives are achieved. It also requires councils to manage efficiently within those limits, avoid over-allocation and address existing over-allocation. Councils must manage land use and water in an integrated way and involve iwi and hapū in freshwater decision-mak-ing.

Reflecting national and

local aspirations requires consultation and agree-ment but conflicts con-tinue.

The Ruataniwha dam decision hinged on keep-ing nitrate in rivers at or below 0.8 mg dissolved inorganic nitrogen per litre of water. This figure was identified last year by expert witness ecologists as being critical for river health. NIWA (National Institute of Water and Atmospheric Research) scientists, however, have indicated that ‘grading nitrate concentration for

high conservation value systems (99% protection) is 1.0 mg N as nitrate per litre, and for 95% protec-tion is 2.4.

Of further note is that in the UK, the River Thames has a nitrate con-centration of over 6 mg N/L, and is home to over 120 species of fish. These fish have returned to a river that was, due to sewage discharge, con-sidered to be biologically dead at Tower Bridge in 1985.

The Thames is now regarded as healthy at least in part because of the fish population.

The debate on water quality is important in the decisions about water storage and irrigation. Concerns hinge on the fear that increasing irri-gation opportunities will lead to intensification in agriculture, resulting

in more nutrient loss to waterways. What doesn’t appear to have been con-sidered is how irrigation

water is applied on farm – yet research involving the Precision Agriculture Centre at Massey Univer-

sity, with researchers from Landcare, has shown that variable rate irrigation

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Page 22: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

22 OPINION

(VRI) has the potential to reduce nitro-gen loss, reduce energy and water requirements, and increase production.

VRI allows farmers to apply water only where necessary, avoiding leach-ing and surface runoff. Specifying type of irrigation involved in the proposed irri-gation schemes could go a long way to alleviating community concerns about water quality.

The government’s overview of fresh-water reform states that New Zea-land receives 608 billion cubic metres of water annually, but uses only 1.8% (excluding hydro-generation).

It is the 597 billion cubic metres of water that is currently running out to sea (via hydro-electricity generators in some cases) that is of concern. Farmers across the country would be happy to apply it to the land. VRI would allow them to do so efficiently, protecting waterways while increasing production from the soil. The International Year of the Soil can be used to raise awareness of the fundamental relationship between soil and water in agriculture, and allow some progress on managing both.• Jacqueline Rowarth is professor of agribusiness at the University of Waikato.

Water – the new goldControlling what we can

WELCOME TO 2015 and hopefully a busy and profitable year for agricul-tural contractors – and farmers alike – all around the country.

Last year ended with southern regions experiencing a cold and wet season and Canterbury along with other eastern parts of the country facing a long, dry summer. We also saw Fonterra slash its forecast payout down to $4.70/kgMS and the potential rebound in red meat prices.

As new year begins, the good news is that the weather has improved in the south allowing contractors to start catching up on the backlog of agricultural work in the region and meat prices have remained firm. Unfortunately, the news is not so good in Canterbury where the dry period has continued and is now start-ing to bite hard; dairy prices have not yet bounced back over the magical $5 mark.

However, that is the reality of life as a farmer and/or contractor with much of our business dictated by thing we cannot control – such as the weather and markets. All we can do is manage the things we can control.

An issue that gained media trac-

tion last year – thanks to efforts by our asso-ciation – is the con-cerns about the efforts being made to try to encourage and attract young people to make careers in the agricul-tural and horticulture industries.

RCNZ, led by our zone 4 region (Otago and Southland), has developed an initiative aimed at encouraging more workers into our industry. Our guys worked alongside WINZ to organise a day where people interested in working in the rural contracting sector could come along talk to contractors, ask questions and get a look at some of the gear we use.

This initiative has turned out to be a resounding success over the past couple of years, with the induc-tion/open day idea something RCNZ plans to replicate throughout the country and we are working on devel-oping a template as to how this best can be done.

However, despite these initia-tives, we still have a shortage of skilled machine operators within our

industry. This leads to our on-going issue with immigration that has been troubling the rural contracting sector for some years.

We have been unable to convince government that there is a skills short-age within our industry for seasonal employees.

Thus far, government has not been willing to include seasonal machine operators on the skills shortage list – therefore making it much harder to bring these operators into the coun-try.

As an industry organisation, Rural Contractors NZ will continue to lobby government and immigration officials on this matter.

Another big issue for our sector, in the coming year, will be health and safety.

Law changes in the Health and Safety Act and the formation of WorkSafe NZ, along with reports of heavy fines dished out for injuries caused at work, emphasise that employers and employees must know their rights and responsibilities when

it comes to health and safety issues in the workplace.

As a sector, we need to get to grips with changes to health and safety reg-ulations; the wider agriculture indus-try rates poorly in this area. The penalties now for getting it wrong, should anyone suffer a major acci-dent at their workplace, are severe and will impact on rural contractors and farming.

That’s why RCNZ spends a good deal of its time and resources on ensuring we are involved with and working alongside others to improve and enhance the safety of members and staff.

As contractors we are used to facing challenges; many we can’t do much about such as the weather and commodity prices. However, we can – and should – do everything we can to ensure that we and our staff get home safe and sound after a hard day’s work.

Then all we will need is the rain to fall where it is needed, the sun to shine where it is needed and the next GDT auction to go up as well!• Agricultural contractor Steve Levet, Wellsford, is the president of Rural Contractors New Zealand (RCNZ).

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Page 23: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

OPINION 23

Defective RMA used against landowners

ONCE AGAIN Forest & Bird is attacking conser-vation-minded landown-ers (Rural News, Dec 16,

2014 p5). This time it is the

hundreds of landowners in New Plymouth district who have retained native bush on their land who are bearing the brunt of Forest & Birds actions. Many of these landowners will have been unaware that the local council had mapped 363 potential significant natural areas [SNAs] on their land.

Unfortunately these landowners will now be dragged into the costly and time consum-ing Resource Manage-ment Act process. This is through no fault of their own; they have commit-ted no crime, but will be ‘penalised’ simply for choosing to leave native bush on their land. This appalling situa-tion is allowed to happen because of the Resource Management Act.

Putting my views into context, I am an active conservationist and long-time member of Forest & Bird. My business is an environmental consultant/restoration specialist and I have helped hundreds of landowners over the past 20 years with environmental projects, mostly protecting or restoring areas of native bush, wetlands and streams. Through this experience I have gained an appreciation of how critical it is to have the support of landowners when protecting areas on private land.

So when I read that Forest & Bird is taking an enforcement order against the New Plym-outh District Council and landowners I despair. The leadership of Forest & Bird has no recognition of the need to encourage and work with landown-ers when protecting bio-diversity on private land. Forest & Bird is driven by the belief that the way to protect biodiversity on private land is through regulation.

The 24-year history

of the Resource Manage-ment Act has shown that using regulation to try to protect biodiversity on private land doesn’t work. Even the Ministry for the Environment acknowl-edged this when stating in 2000 that “…regula-tion [of biodiversity on private land] is likely to be counterproductive and risks losing many private ‘conservators’ across the country.”

What is particularly disappointing about the enforcement order is that Forest & Bird is seeking that district plan rules override voluntary initia-tives such as QEII Trust covenants. This action will only serve to under-mine the successful volun-tary system that is widely trusted and supported by landowners.

The Forest & Bird enforcement order court case will have repercus-sions for landowners and councils throughout New Zealand. Based on previ-ous case law, it is likely that Forest & Bird’s case will be successful. This is not because its case is the best option, but it is a reflection of how the Environment Court inter-prets the Resource Man-agement Act.

That is a theoretical interpretation of the law rather than what is prac-tical or the most effec-tive option. Typically this involves looking back-wards at what biodiversity has been lost and opting for regulation to stop the loss of any more. Rather than looking forward by celebrating what is left and building on the good-will and generosity shown by those landowners who have chosen to leave native bush/wetlands on their land.

What is likely to now happen to the landown-ers in the New Plym-outh area is that they will be ‘encouraged’ to allow surveys to confirm the presence of ‘significant’ vegetation or habitats and to establish accurate boundaries. On face value this may seem advanta-geous, but based on the experience of landowners in my area of Canterbury it is not safe in the current

JAMIE MCFADDENRMA regulatory climate to allow any surveys on your land.

The RMA is in urgent need of major reform as it is failing to achieve its purpose of sustainable management. In fact it

is doing the opposite – turning biodiversity into a liability and penalising our most conservation minded landowners.• Jamie McFadden is a North Canterbury conser-vationist.

Jamie McFadden warns farmers and landowners to be wary of surveys identifying ‘significant’ vegetation or habitats on their property under the current RMA legislation.

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Page 24: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

24 MANAGEMENT

Lupin gains traction in high countryAN EARLY growing, nitrogen fixing, acid and aluminium tolerant plant is promising to transform productivity of New Zealand’s low fertility high country, with a grower at the forefront of its introduction reporting up to an eighteen-fold increase in stock carrying capacity.

The plant is the lupin, the subject of many a tour-ist’s holiday snaps in the Mackenzie District for decades, but until recently confined to roadsides, riv-erbeds, and trial plots.

Now, largely thanks to the persistence of one particular scientist, the plant is starting to find a place on the lower coun-try of a few of the exten-sive sheep and beef farms

that manage the Macken-zie landscape.

One of them is Sawdon Station, where Gavin Loxton – better known locally as ‘Snow’ – sowed his first paddock with lupin ten years ago. Now, he has 300ha established and is sowing more every year, direct-drilling 2kg/ha into the sparse, erosion prone pasture.

“It’s costing us about $140/ha to develop this ground [with lupin] and then there’s electric fencing and stock water needed so you can make use of it, which maybe takes it to $250/ha.”

Depending on the sea-sons, within two or three years of sowing plants start shedding substantial amounts of seed which, in

due course, perpetuates the stand, but the lupin never completely takes over and grasses, which struggled to survive previ-ously, thrive in the micro-climate the bushy legume creates.

“The leaves keep the soil cool in summer and the residue insulates the ground in winter,” explains Loxton. “It’s the only place on the farm we ever find Italian ryegrass surviving long-term.”

Cocksfoot also ben-efits from neighbouring lupin, extra nitrogen fixed rendering the hardy grass much more palatable.

As for the lupin, sheep “go for the flowers first, then the leaves and gen-erally leave the stalks,” explains Loxton.

He’s found little prob-lem with palatability but is working with lupin guru David Scott (see side-bar) to find, and hopefully develop, a low alkaloid line.

Stock also benefit from lupin’s micro-cli-mate and as the first plant out of the blocks in spring the clumps provide good cover for lambs. Several stations are now lamb-ing Merinos among them, they point out.

In Loxton’s case, lambs on their mothers gained 160g/day on lupin last spring/summer, despite being set-stocked at about 12 ewes/ha, compared to the one ewe/ha they put on unimproved pasture.

“On this dry coun-try that’s a relatively high

stocking rate and the increased growth rate [of the lambs] means we’re able to wean earlier, and heavier. Last year they were about 29kg/ha when we weaned at the end of January.”

This year he’s pushed that stocking rate to 18 ewes/ha but whether the same growth rates are achieved remains to be seen.

His lucerne stands sup-port similar stocking rates and have achieved slightly better average lamb growth, at 205g/day, but lupin’s much lower estab-lishment and maintenance cost more than makes up for the difference, he says.

Not only that, lupin’s early and late growth pro-vides feed for ewes and

lambs when it’s most needed, and it will grow well where lucerne won’t due to low pH and/or high aluminium.

“The biggest prob-lem with lucerne is it just doesn’t grow for four or five months of the year. Where we can grow it,

normally we get about 9tDM/ha/year off it. With lupin we’re getting 15t/ha of drymatter.”

Based on the results of trials at nearby Mt John (see sidebar), a lupin stand is also likely to per-sist for decades with min-imal input, whereas even

Lupin, the picture postcard plant of the South Island’s high county for decades, looks like becoming a common commercial pasture species for low fertility situations before too long. Andrew Swallow reports.

David Scott and Gavin Loxton survey a stand of lupin on Balmoral Station.

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Page 25: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

MANAGEMENT 25

Lupin gains traction in high countrywith good management lucerne is likely to run out in about 10, he adds. “We’re just getting going with lupin after ten years.”

Loxton’s experi-menting with ensiling, with Lincoln Univer-sity helping gather and in due course, analyse, data. He’s also trying sowing lucerne with lupin.

“Leaving the grasses out of the mix means it should be easier to control problem grasses like hair grass.

Experience has shown drilling with urea, DAP and Sulphur Gain down the spout improves establishment, which in turn speeds improvement of the pasture. Only 2kg/ha of seed is used through a conventional Duncan triple-disc drill and within 2-3 years the lupin starts flowering and seeding to fill in the stand. “We just fill the drill with seed and go drilling.”

They’ve found no need

to inoculate seed as the soil appears to contain the right strains of rhizobia to colonise root nodules and fix nitrogen.

“The nodules are perennial and don’t slough off in times of stress like they do with lucerne and clover,” notes Loxton.

Another advantage of the species is its low maintenance and flexibility.

“In a tough year for meat and wool returns we don’t have to put any fertiliser on and we’re not using herbicides either. With lucerne if you don’t keep up the annual management you’re likely to lose the stand.”

A lifetime dedicated to lupin researchRESEARCH ON lupin in New Zealand is dominated by one man’s work: Tekapo resident and former Agresearch scientist David Scott.

His relationship with the colourful legume spans eight decades, starting when his mother, among others, spread seed along a roadside in the Mackenzie Basin in the 1940s.

“I was just going back to boarding school. It can’t have been more than a few hundred yards because we were walking,” he recalls.

The roads were all shingle in those days and over the years graders spread the spe-cies across the basin. Meanwhile Scott studied botany at university and, after a couple of years farming and doing a PhD in the US, he went into research with the Department of Agriculture and Grassland where he was asked to take on the high country programme.

A problem with pasture and crop trials at the time was that they were never big enough to incorporate grazing animals, he says, so in 1981 a site was established at the foot of Mt John with “twenty-seven species sown in one glorious mix with dif-

ferent fertility levels and grazing manage-ment applied.”

He says it was “purely by chance” lupin was included but now “the rest is history” as over the years the crop came to domi-nate the low and medium fertility plots which had 50 or 100kg/ha/year of super-phosphate (ie P and sulphur) applied. With grasses between the lupins benefit-ting from nitrogen fixed, average stock carrying capacity was more than trebled, from 0.8 stock units/ha/year to 2.6-3.1 stock units/ha/year*.

Meanwhile the high fertility (500kg/ha/year super) plots which were also irri-gated became dominated by grasses and increased mean carrying capacity ten-fold, but the considerable cost of such inputs meant the low input lupin approach is likely the most economic, particularly as subsequent research shows that once established, about 50kg/ha of elemental sulphur applied every five years is all that’s needed to maintain productivity of lupin dominated stands.

“Once established it has it’s own means of getting phosphate.”

Asked why the crop is only now start-

ing to gain traction with farmers in the high country, Scott says it is normal for a new crop to take years, if not decades, for farm-ers to become convinced of its benefits. He believes it could transform productivity off not only New Zealand’s low fertility pasto-ral land, but worldwide.

It seems likely swathes of the South Island’s high country will become a whole lot more colourful in years to come.

* Proceedings of the New Zealand Grassland Association 70 (2008).

Large nodules: the lupin’s nitrogen fixing factory, no inoculation required.

Tekapo scientist David Scott has spent his life researching the secrets of the lupin and its suitability for the high country.

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Page 26: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

26 MANAGEMENT

WEBSITE CELEBRATES FARMING STORIES

MANY GREAT farming stories brought to light by the Ballance Farm Environment Awards can now be watched on New Zealand Farm Environment (NZFE) Trust’s website.

NZFE chairman Simon Saunders says the trust recently revamped its website to make the “wealth of educational material and farming stories” easily accessible to farmers and others.

Saunders says the ‘Great Farming Stories’ link on NZFE’s homepage will let viewers see ‘Sustainability in Action’ video presentations and written reports.

Depicting the regional winners of the Ballance Farm Environment Awards (BFEA), the videos show farmers ‘doing the right thing’ in sustainability. Farms, vineyards and orchards are featured.

Site visitors may also see BFEA brochures from past competitions, showing supreme and category award winners

from each region, detailing their farming practices and goals.

While all the featured farmers are at different stages of their farm development, they all intend to farm sustainably and profitably.

Saunders says the website will also interest people who are not farmers. “Urban people will enjoy learning more about what farmers are doing to look after their natural resources while improving the sustainability and profitability of their businesses.”

He says the website is a resource for anyone considering entering the Ballance Farm Environment Awards.

“You don’t have to have the best farm in the district to participate in the awards. Most farmers enter because they want to benchmark their farming operation and build knowledge on how to mitigate environmental issues and lift business performance.”www.nzfeatrust.org.nz

Winning pig farm to host field dayA FIELD day to be run next month by the winner of Lincoln University Foundation’s South Island Farmer of the Year will have relevance for farm-ers, primary producers and agri-busi-nesses, says foundation chair Ben Todhunter.

Patoa Farms Ltd, a free-farmed pig breeding and finishing operation at Hawarden, North Canterbury, won the competition for 2014 and is hosting a field day on Friday 13 February.

New Zealand’s largest free-farmed pig enterprise, Patoa Farms, run by the Sterne family, has gone from modest beginnings to a $25 million per year business in a relatively short time. It now supplies about 15% of New Zealand’s domestic pork market and about 50% of the free-farmed pork.

The farm has 3500 breeding sows and sells 115,000 fat pigs annually. It employs 43 staff.

Todhunter says farmers, producers and agri-businesses will find value in the field day.

“The Sterne family won the compe-tition with impressive growth, technical excellence, efficiency of production and strategic focus,” he adds.

“They demonstrated that it was pos-sible to achieve at the highest levels of farming technology and business man-agement in an outdoor free-roaming stock operation.”

Todhunter also believes their strate-gic thinking and business management ideas, brought through from their expe-rience in other industries, will benefit farmers and agri-businesses.

“The stories that Patoa Farms tell

will resonate with all farmers. There will be some great ideas to take away from this field day. It has potential to inspire others in the development of their own businesses.”

Dairy will also be represented at the field day with runners up Retro Organ-ics providing a display and tasting.

Organic and standard dairy farmers in Southland, Robin and Lois Greer produce organic dairy products for retail. The judges liked the way they added value to their product and were open to innovation and new technology. [email protected]

● What: Patoa Farms, South Island Farmer of the Year 2014, winner’s field day

● When: Friday 13 February 2015, 9:45am to 3:30pm● Where: Hawarden Memorial Hall, 8 Horsley Down

Road, Hawarden● Featuring: Farm tours and topical presentations on

today’s farming issues● Cost: Free (including lunch and refreshments)● RSVP: Pre-registration is preferred.

Th

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Page 27: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

MANAGEMENT 27

Poultry award winner started young‘YOUNG’ ADRIAN Paul, the winner of the 2014 Poultry Trainee of the Year Award, is in fact an industry veteran.

“I grew up in the indus-try,” he says. “My grandfa-ther got our family started in the industry 50 years ago by building one of the first meat chicken sheds in Taranaki. “My father, Terry Paul, took over the business in 1982 and I started work-ing on the farm part-time while completing an IT qualification. After nine months in the UK I started full-time work six years ago.”

Now as farm manager he is responsible for every aspect of running a meat chicken farm. “We raise 135,000 birds in each batch, doing about 6.5 batches per year. My brother-in-law, Stephen Wolfe, assists me with this job.” Paul was the 2014 top-performing trainee in the National Certificate in Poultry Husbandry Cer-tificate course (level 3). Its

standards and qualifica-tions are developed by the poultry industry and the Primary ITO.

The one-year, level 3 course is for people in or heading for supervisory or management jobs. It com-prises a mix of on-the-job training, written assess-ments and attendance at a block course.

“A highly skilled and knowledgeable workforce is vital for the growth and profitability of the industry,” says Michael Brooks, of the Poultry Industry Association of New Zealand (PIANZ). “This award reflects

our commitment to training and education. The poultry sector has more personnel with PrimaryITO qualifications than any other agricultural sector.” As part of his award, Paul was flown from New Plymouth to Auckland to meet the PIANZ Board and attend a lunch as guest of honour. He says he found the experience of studying

and training for the certificate interesting. “I got to learn more about other areas of the industry I wouldn’t normally be involved in during the day-to-day running of the farm. On the block course I also got to meet others involved in various roles apart from meat chicken growing.”

Tanya Ingram, Paul’s course coordinator at Prima-ryITO, says he was a “quiet achiever”. “He completed the on-farm component of the course with commit-ment. He is a valued member of the local Tegel team and his stockmanship and overall ability on-farm is evident.”

Paul’s farm recently built a 2300m2 shed.

FIVE RECENT graduates of Smedley Station (5000ha) at Tikokino, near Hastings, have won scholarships totalling $26,300 are this year starting diploma stud-ies at Lincoln University.

Rabobank sponsors Smedley graduates in relevant diploma and degree courses.

“Rabobank is proud to provide bursaries to cadets graduating from the station to do further studies and build their agricultural careers,” says Rabobank East Coast regional manager George Murdoch.

The cadets who got the bursaries are Philip Cut-bush, Watarawi Ngata, Dean Wardle, Ben Galloway and Jack Virtue.

Smedley Station is held in trust by Public Trust for the Crown, and is administered by Public Trust’s national farm centre managed by Rodd Hutton.

“Smedley Station is grateful for the support given by Rabobank and its generosity in funding further edu-cation for Smedley cadets,” Hutton says. “Cadets get real farming experience and every decision affects the welfare of the station. Cadet training is funded directly from Smedley revenue.”

Smedley is one of 30 farms administered by Public Trust. The farms range from 48ha. Five are in the South Island, the rest in the North Island, mostly in Waikato/Bay of Plenty, Taranaki and Hawke’s Bay.

FARM CADETS’ UNI STUDIES FUNDED

“I grew up in the industry,” he says. “My grandfather got our family started in the industry 50 years ago by building one of the first meat chicken sheds in Taranaki.

Adrian Paul, 2014 Poultry Trainee of the Year (right), receives his award from PIANZ chair-man Adrian Revell.

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Page 29: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

ANIMAL HEALTH 29

Swedes – HT or not – damaged liversBLOOD AND autopsy samples from cows that were sick or died after grazing swedes in Southland last winter have confirmed liver damage but the role, or not, of the HT strain of the crop in the epidemic is still unclear.

“While the study did not allow comparison between swede varieties, the findings indicate that cows experi-enced liver damage after grazing swede varieties other than the HT (herbicide tolerant) variety, regardless of whether there were visible signs of illness,” said Dairy NZ’s regional team leader Rich-ard Kyte in a media statement released December 23.

Last week Kyte declined to reveal the data behind that statement for fear of wrong or invalid conclusions being drawn from what was “just one bit of data” in the ongoing investigation.

“These samples were from just 15 farms late in the piece and we have no further information on these farms at this point so this data really is in isola-tion,” he told Rural News.

It was known which cultivar the ani-mals sampled had been grazing but the differences between them were not sig-

nificant and no further scientific con-clusions could be drawn, he added.

The next step in the investigation is to collate and analyse data from an in-depth survey of 120 farmers and their graziers.

“We have interviewed farmers across the region, those affected and unaffected by the issue, to help us understand whether farm management practices may have been a contributing factor….

“We have also sought permission to access their relevant veterinary records. These could provide a wider dataset and help us understand the ill-ness better and give us valuable insights into what happened.”

Analysis of the survey data has started and findings are expected

in March.Kyte says it’s too soon to say whether

there’s been an impact on reproduc-tive performance, as some feared, as reproductive data isn’t yet complete. Results could also be skewed by South-land having had “a shocking spring”, but analysis of additional blood sam-ples is underway to assess if and how affected cows have recovered. Results are expected by the end of next month.

Analysis of plant samples taken from crops that caused problems, and those that didn’t, should get underway soon, he adds.

“We are working with New Zea-land plant breeders and laboratories to ensure we use a consistent method-ology for the analysis of the plant sam-ples. That’s vital to ensure we get some

robust and useful informa-tion from that work.”

The blood and autopsy sample results indicate liver damage similar to that seen in facial eczema. Visual symptoms in the cow, such as the photosensitivity seen in the swede cases, occur after the liver has been dam-aged, notes Kyte.

“We’ve reviewed the pub-lished scientific data on this topic. It supports the possibility that substances in the swedes caused this disease (see panel)….

“However, we have to be careful

about drawing any major conclusions from these findings. The analysis is based on samples col-lected at a single point in time towards the end of the period when the ill-ness was evident. They were not collected over the whole swede grazing period.

“Additionally, only a selection of swede vari-

eties was represented in the animal samples taken. The possibility of an unknown toxin causing this can’t be discounted.”

ANDREW SWALLOW

All brassica varieties produce a range of sulphur-containing substances (pre-toxins) such as glucosino-lates and SMCO (S-methylcysteine sulphoxide) which are not toxic in themselves, says Kyte. Brassica pre-toxins are changed during rumen

digestion into toxic agents such as nitriles, which are known to cause liver damage in rats. Levels of gluco-sinolates and SMCO in plants can be affected by plant growth conditions and are generally highest in mature plants and flower heads.

BRASSICA POISONING

SWEDE STORY SO FAR• Winter/spring 2014: hundreds of cows grazing swedes in

Southland die, many others sick (Dairy News, September 23)• HT variety implicated, but possibly simply because

it was most widely grown.• Working group formed, including Federated Farmers’,

veterinary, seed industry, and Dairy NZ representatives, formed to investigate incident.

• December 23: first blood and liver sample analysis announced shows liver damage consistent with brassica poisoning but no variety link.

DairyNZ’s Richard Kyte.

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Page 30: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

30 ANIMAL HEALTH

FARMERS will be able to apply all the tags an animal needs with just one tagger, says Leader Products sales and market-ing team member Murray Jacob.

The company has launched Pro Tagger, an appli-cator that works with two-piece tags used on sheep, cattle and goats, says Jacob.

From the start of 2012 NAIT required all cattle and deer to carry EID informa-tion as well as their herd management information and Animal Health Board lifetime tags.

Unlike the thinner lifetime and man-agement tags the EID tag’s bulky trans-mitters required a different retainer for the female portion.

While some tried using adaptors to take the tags, these were often the first thing to go missing, Jacob says.

“When questioning farmers about tagging, the problem of needing two taggers to do EID and management tags arose.”

To overcome this Jacob says they added a second part to the unit’s action and changed the bed shape for the female part of the tag. “To achieve this with the different shapes of EID and management tags available the bed for the female tag has been designed to fit the width of all female tags and the base has been made with a spring release to assist movement for longer tags that may bottom out.”

The Pro Tagger has no pin spring, something Jacob says caused problems for farmers in the past. “Farmers told us that the springs on the flip-out pin of tra-ditional flip-out pin taggers were either too soft on older cattle – which meant the

tagger opened before the tag was applied – or were too hard for deer and younger animals who ended up with torn ears.”

Engineers resolved this by removing the spring from the pin, putting it instead behind a bar which held the pin in place when tags are being applied. “Tags can be mounted on the applicator and free flip-out in closed position, allowing the joined tags to exit the applicator without hindrance.”

Jacob says customers also com-plained about male tags sometimes fall-ing off, resulting in a small retaining clip included in the design.

“The snub nose is a late addition to assist the release of the tags when joined, by nudging the base of the male portion as the pin swings free.”

“We found when using other brands, some male tags were inclined to stick.”

He says they have also attempted to make the use of the taggers safer and more comfortable by making the sup-plied lanyard removable and provid-ing application holes in both handles for left or right handed operation. “The lanyard is designed to pull free for oper-ator safety if the tagger is caught some-way and release is required.” Tel. 0800 242 824www.leaderproducts.co.nz

GARETH GILLATT

IMPROVED TAGGER EASIER TO USE

Ask questions on swede issueIT IS now four months since Rural News first reported on the deaths of Southland cows on swedes so I thought it would be a good time to determine that the investigation is on track and the correct ques-tions are being asked.

Farmers should be asking that the following tests be done:

• trace element levels in soil, plants and animals;

• blood and urine tests for metabolites of chlor-sulfuron and soil tests for chlorsulfuron;

• glyphosate levels in swedes and baleage fed with swedes, given it may have been sprayed before baling;

• comparison of gut biome in affected cows to healthy cows and levels of botulism toxins

The developers of the swedes should also be made to provide all data on the chemically engi-neered lines, including those showing unintended changes. Farmers should also be demanding MPI and the Environmental Protection Authority (EPA) remove these products, HT brassi-cas and all pesticides used in the production of these crops. The should be with-drawn until they have been found to be safe individu-ally and in combination by long-term animal toxicity tests, undertaken by inde-pendent laboratories to ensure there is no hiding of harmful data. As is happening in China, where the chlorsulfuron has been banned, there should be a review of all licensing of pesticides to prevent these kinds of disasters from happening. The health of this coun-try demands nothing less. Farmers must be at the forefront of this demand, and don’t rely on Federated Farmers to do it for them. • Frank Rowson, Matamata

Cows started keeling over after grazing on swede crops in southland last August.

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Page 31: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

ANIMAL HEALTH 31

Vets back animal welfare reformsTHE VETS’ national body says it is looking forward to greater transpar-ency and enforceability of animal welfare standards when the Animal Welfare Act Amendment Bill is passed in mid-2015.

The primary industries select committee recently recommended accepting most of the suggested amendments to the bill. The NZ Vet-erinary Association (NZVA) says it is pleased to see that codes of welfare will be more strictly enforced.

“Public perceptions of what con-stitutes animal cruelty have become markedly more conservative over recent decades, and legislation must reflect this shift in attitude,” says NZVA president Dr Steve Merchant. “Practices once commonplace for companion animals and farm stock are no longer acceptable or tolerable.

“The new legislation includes sub-stantial progress on significant sur-gical procedures (SSPs), which was a major focus of NZVA’s submission on this bill. We lobbied for a clearer def-inition of SSPs and the retention of the current policy that SSPs only be performed by veterinarians or veteri-nary students under veterinary over-sight. Both have been implemented.

“We also supported a list of clas-sifications for SSPs to be included within regulations and for this pro-cess to be driven by NAWAC in consultation with key stake-holders such as NZVA.”

While the act will not specify SSPs, there will be a list of classifications for

SSPs to be developed in the regula-tions after the bill is passed as part of the consultation phase.

The NZVA is also pleased to see stronger regulation of live animal exports. “This should allow veteri-narians to play a more substantial role in the assessment and monitor-ing [assurance] of the export pro-cess and associated animal welfare issues.”

Merchant said that the issue of having the right to seek a second opin-ion regarding eutha-nasia of severely sick or injured animals, as reported back in the bill, will remain a problem for veter-inarians in practice.

The NZVA believes the current process can result in big delays, leading to further harm and/or suf-fering in animals and is frustrating for profes-sionals.

“Another reservation lies in the potential for eco-nomic or practical-ity issues to

override animal welfare when NAWAC develops future codes of practice [for animal welfare],” Mer-chant says. “That said, once the bill is passed into law NZVA will consult to develop regulations.”

Elanco completes Novartis takeoverELANCO SAYS it has completed the takeover of Novartis Animal Health, creating “a new global leader in animal health focused on delivering increased value and innovation to the industry”.

The takeover, announced last April, follows its purchase of Lohmann Animal Health earlier in 2014. The company says it will be able to offer more product diver-sity. It now sells nearly 300 brands including therapeutics, vaccines, parasiticides, antimicrobials, sur-gical, enzymes and food safety.

“Elanco’s acquisition of Novar-tis Animal Health brings together two strong companies,” says Michele Genini, general manager of Elanco for Australia and New Zealand.

“We will continue to offer the products our customers’ trust, while investing in the development

of new solutions to our customers’ greatest unmet needs.”

Genini says Elanco will spend more on R&D. It has 100 product development projects including

protecting livestock from disease and parasites, improving animal wellbeing and reducing the envi-ronmental footprint of livestock production.

“Elanco is also committed to helping producers around the

world produce more food using fewer resources to meet the grow-ing demand for animal protein while protecting the planet and well-being of animals,” Genini says.

“With increased technical ser-vices, that combine our analytic and benchmarking tools with on-the-ground support, we’ll be able to spend more time with individ-ual customers seeking innovative solutions that can make a differ-ence in their business.”

He says the complete integra-tion of the businesses will take time, but Elanco will strive to make the transition seamless.

“For the foreseeable future, business will continue in much the same way, including product order-ing and customer support. Avail-ability and access to products will continue uninterrupted.”

@rural_news

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NZVA president Stephen Merchant.

“Elanco’s acquisition of Novartis Animal Health brings together two strong companies.”

– Michele Genini

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Page 32: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

32 ANIMAL HEALTH

FE REMINDERWARM AND wet weather will raise the risk of facial eczema, a disease that undercuts milk production and animal health, warns Ballance Agri-Nutrients.

Fungal spores in pasture, especially fresh, new grass, cause FE, the spore counts increasing when grass temperature exceeds 12oC for three consecu-tive nights but will vary farm to farm and paddock to paddock.

Ballance Agri-Nutrients agro-science team member Jackie Aveling says dairy farmers should be especially alert and adopt a prevention approach in light of the reduced payout. “It’s a sad fact that often ideal grass growth conditions such as warm wet weather are also ideal for facial eczema spores.”

Aveling warns it is not always easy to detect FE in its early stages.

“Often farmers are unaware of the full extent of a facial eczema problem until it’s too late. For every three in a hundred cows showing clinical signs of facial eczema, that can be the tip of the iceberg with subclinical cases potentially involving up to 70% of the herd.”

The disease can halve milk production so preven-tion is “the best course of action,” she adds.

A popular option is dosing troughs with zinc sul-phate but the bitter taste can put the herd off the water. That’s masked in Ballance’s Zincmax+ with a peppermint taste. It also contains organic copper to offset zinc’s antagonistic affect which reduces copper absorption.

Copper is important for production, immune response and fertility. Low copper can affect growth and fertility in heifers.

FE symptoms include restlessness at milking, seeking shade, udder licking, and the more obvious skin damage of clinical cases.

Southdowns share honours at Canterbury saleTWO SOUTHDOWN rams shared the honours at Canterbury A&P Association’s elite ram & ewe sale last November, both making $14,000.

Of 238 rams offered, 77 were passed but all 24 ewes sold. Rams averaged $1781 and ewes $234 to total $286,725, back on last year’s

$306,120.“While

overall sales are down on last year, the clear-ance rate was good and aver-ages kept up with 2013,” said PGG Wrightson NZ livestock genetics

manager Bruce Orr. The drop in sales was disappointing but a sign of the times and buyers were getting “very good value” with rams, given the number and price of prime lambs they could sire, he added.

“The overall picture for sheep and beef looks pleasing when you consider the global outlook for

dairy farming, particularly taking into account the large disparity in the 2013 and 2014 proposed pay-outs.”

The two sale-topping South-downs were from BC Macaulay’s Maclaka stud, Christchurch, and Chris Medlicott’s Clifton Downs, Waimate.

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Page 33: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

MACHINERY & PRODUCTS 33

Revamped farm bike ticks all the right boxesTHE HONDA XR150L ticks the right boxes for a farm bike – easy to ride, quiet, light and easy to service.

It is an update of the XR125L with a raft of changes, but at the same price as the 125.

The larger updated engine fea-tures an offset crankshaft, roller rock-ers, a lighter piston and a redesigned oil cooling path to increase reliability and power.

Power has been increased to 9.4KW, up from 8.3KW.

It also has a new balancer shaft to reduce vibration. It works well and the 150 is very smooth and quiet.

The extra engine capacity has made a difference, giving more bottom end and mid-range. It is now a more tractable unit that is happy lugging around the farm at low revs with a load on.

Whereas the 125 could occasion-ally be a bit short of breath, the 150 is more than adequate in normal farm

situations.The five speed gearbox is a slick

little unit, shifting easily and accu-rately. Gearing is relatively low but a low or extra low sprocket is available if needed.

The single front and rear drum get the braking done without fuss.

The front shocks are adequate rather than sensational, although this is not a motocross bike and the per-formance of the shocks relative to the price and purpose of this farm bike is acceptable.

The new nitrogen filled rear shock is an improvement, taking the hits without bottoming out too easily. There’s a limit of course and high-flying, Nitro Circus daredevils should look elsewhere.

The short wheelbase makes the Honda XR150L easy to manoeuvre in tight situations, but taller riders may feel a bit cramped. This was the ini-tial impression of the dairy farmer we put in the saddle, but after a couple of days using it on the farm he decided

that overall the bike did the job it was designed to do and it was not uncom-fortable.

The one suggestion he made was to fit a larger, more useable rear car-rier.

Other changes listed by Honda include:

• A more comfortable seat while retaining the XR125L’s 825mm seat height

• A modern new dash unit fea-turing a clearer speedo and warning lights

• Clear indicators front and rear• A new headlight unit in the

CRF250L style and updated body-work and colours

In summary, the XR150L is fit for purpose. It was very easy to ride, a key for a bike that will be ridden by staff with varying experience levels. No drama, just get on and go, time after time.

At $3477 ex GST the new 150 costs the same as the 125 it replaces – a great deal.

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Page 34: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

34 MACHINERY & PRODUCTS

NOT SURE if you are ok to drive? For the first time, Kiwi motorists can do a police grade breathalyser test via their Android smartphone.

The Alcoordi, which has won ‘best invention’ awards overseas, is a compact device that physically plugs into an Android smartphone.

It uses a semi-conductive oxide sensor to record the blood alcohol level on a user’s breath, and that data is sent to, and analysed by, the free, downloadable app on the smartphone.

The sensor technology is used by the Finnish and Korean police and the analysis measures to within two decimal places.

“This is reliable and accurate police grade tech-nology. Each product is factory tested and calibrated before shipping,” says Maurice Wooster, the owner of Robertson Engineering and director of Alcoordi Ltd in New Zealand. “This device will keep our roads safer and hopefully save lives.”

The software can be customised to user preferences, configured for multiple users and is able to calculate recovery times based on measurement history.

“This is the device I want my children carrying because I know it will help to keep them safe,” Wooster says. The device comes with a variety of warning fea-tures designed to discourage over-the-limit users from driving.

“There is the option of having a photo of your part-ner and children appear on the screen if you are over the limit. That should act as a deterrent to driving,” Wooster says. “The app can also be programmed with the phone numbers of taxi companies or other people who can be relied on to help out if you are over the limit.”

Other breathalysers are available in New Zealand, but they are three times as expensive. The Alcoordi is also small enough to carry in a pocket.

Wooster said he’s importing the device because he sees massive demand for something that’s compact, smartphone-friendly and accurate, given the lower alcohol limits being introduced next month.

Smartphone tech to test for drink drive limit

Broadband twice as fastA NEW Zealand internet service provider claims its satellite network is not only taking internet access to all the places traditional broadband can’t reach – it’s now twice as fast.

Wireless Nation says its new increased download speed of up to 10Mbps is much quicker than competing satellite networks and is comparable to standard city broad-band. The increased speed means faster web browsing, quicker down-

loading of email attachments, and it allows video streaming in even higher quality.

The extra speed comes at no extra cost and is available pretty much anywhere in New Zealand.

“Wireless Nation has always been passionate about improving rural connectivity,” says managing director Bill Smale. “Satellite broad-band has come a long way since early expensive versions which pro-

vided very slow download speeds, and is only going to keep getting faster.

“We are continuing to innovate and use the latest satellite technol-ogy to provide the fastest, most reli-able broadband possible to rural New Zealand.”

Wireless Nation says it uses leading technology to get satellite broadband wherever it’s demanded.

The internet feed is beamed

from a geostationary satellite to a dish installed at the customer’s home. Its coverage comes through the Optus Satellite which has ‘hot’ signal strength over New Zealand and is not prone to rain fade.

The company also offers VoIP (Voice over IP) phones, which it says are cheaper and more func-tional than a normal landline. Its satellite network is designed to optimise their performance.

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Page 35: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

MACHINERY & PRODUCTS 35

Dutch mag votes V6 the ‘best’THE NEW Holland T6 Auto Command tractor has won the Boerentrekker of the Year Award 2014 in the Netherlands – ‘Best Farmer’s Tractor’ for the year. It was conferred at the Agrotechniek 2014 trade fair by the Dutch farming maga-zine Boerderij. First published in 1915, this weekly indepen-dent farming magazine counts a readership of at least one million.

Boerderij selected a ‘jury’ of trade journalists and polled some 1000 farmers and contractors via its website. Tractors (70-150hp) bearing 19 brands and launched in 2013 or 2014 were shortlisted. They were rated for key criteria such as comfort, power, affordability and manoeuvrability.

The jury chose the T6 Auto Command as winner based on design, technology, comfort and quality. The T6 range is considered “the tractor of choice for future-focused farm-ers with mixed arable and livestock farms, and for contrac-tors and specialist agribusinesses,” NH says.

“The tractor’s ergonomics, intuitive operation and high level of comfort are thanks to the multi award-winning Side-Winder II armrest, that hosts the most frequently used con-trols, and the Horizon cab, that offers high levels of operator comfort and outstanding visibility.”

This model has ECOBlue SCR technology for Tier 4A compliance to improve productivity and profitability.

“The optional SuperSteer front axle delivers outstand-ing manoeuvrability, while the optional Terraglide front axle (with fully integrated front suspension) makes for smooth driving.”

New Holland is imported in New Zealand by C B Nor-wood Distributors Ltd. Tel. 06 356 4920www.newholland.co.nz

The T6 Auto Command tractor from New Holland Agriculture won ‘best tractor’ at the Agrotechniek trade fair in the Netherlands.

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Page 36: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

36 MACHINERY & PRODUCTS

SOUTH ISLAND Agricultural Field Days (SIAFD) organ-isers say they are well on with shifting the venue of the event from Lincoln to Kirwee.

Late last year the committee took ownership of its new site, 40ha on Courtenay Road near Kirwee township.

Working bees have readied the property ready for the March 25-27 event and sponsors are stepping up.

Committee member Daniel Schat says the event had outgrown its leased site near Lincoln University, prompt-ing a property purchase. “The 2015 event will be bigger and better than ever. It will have the same mix of displays, machinery and fencing demonstrations.

“We will also have the Agri-Innovation competi-tion, with awards for best New Zealand-made machine, best farm invention and best imported farm machine. We expect to see new companies and new technologies this year.”

Volunteers have cleared the Kirwee site, put up fences, prepared the way for water and irrigation lines and planted oats, fodder beet and other crops for machinery demonstrations.

“Vodafone and Spark say there will be good mobile phone coverage and plenty of data available to ensure new technology can perform at its best.”

Power will come from generators but in time the Kirwee site will have mains power.

Eftpos will also be available on-site.SIAFD is a non-profit organisation staffed by volun-

teers. Some of the money it raises goes to scholarships for Lincoln University students.

SITE SHAPES UP Mower cuts clean and conditions quicklyMANAWATU CONTRACTOR Kerry Ploen’s new Lely Splendimo PC 330 mower is cutting cleaner than he has ever seen, says Lely NZ.

Ploen’s Palmerston North business KP Contracting does spraying, cultivation, ploughing, hay, drilling and baling.

Lely says he’s a big fan of its machinery, though he has not owned a Lely mower before.

“We’ve had a lot of Lely tedders and had a good run with them,” Ploen says. “We looked at a few others but I’ve always liked Lely gear so we went with this one.”

The 3.25m Lely Splendimo PC 330 is a larger mower than the one Ploen had before and he likes the modular construction of the bar. “Even years ago when they first came out I liked them. They’re built like a brick.”

The modular cutter bar has the maker’s Quick Switch obstacle safety device. Quick Switch is integrated into the drive of the

mower disc and protects the drive line of the cutter bar against obstacles.

Maximum room has been created by constructing the supporting frame as broad as possible and by placing the wheels on the inside. This allows the use of an exceptionally wide conditioning rotor to optimise crop throughput from the cutter bar.

The large conditioner hoods

benefit from the space above the wheels so that the swath formers are well aligned to the rotor. In addition, they ensure a streamlined crop control enabling narrow swaths and effective wide spreading.

Ploen estimates he’ll do about 800ha with his Splendimo PC 330 this season.

“It’s built well and solid. It’s quite heavy but not noisy. It’s the

conditioner model and the grass seems to dry fast.”

The conditioner model has steel flails, with the swing-over model capable of being mowed on both sides of the tractor. “It’s particularly good that you can go from one side to the other. You can mow on either side. You can switch it over and it’s easy, and you can do it all from your cab just running along.”

An advantage of a trailed mower-conditioner is the wheels running behind and before the machine, which adjust the height of the support frame to the ground profile. This allows even distribution of weight, as the machine’s weight is spread between the tractor wheels in front of the cutterbar and mower wheels behind the cutterbar.

Ploen bought the mower from Country Machinery Ltd, Sanson.Tel. 07 850 4050www.lely.com

Kerry Ploen says his Splendimo PC 330 cuts so well it is like a lawn mower.

Call 0800 804 458 to find your local dealer. Or visit our website, www.giltrapag.co.nz

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Page 37: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

MACHINERY & PRODUCTS 37

Dealer start up prompts tractor purchaseBAY OF Plenty dairy farmer Ross Barker was always keen on Case IH tractors, but needed the support of a local dealer before he bought his Maxxum 125 Silver two years ago.

Barker and his family farm 190ha at Reporoa, milking 530 cows. They ran Case IH tractors a decade ago. Then they heard Giltrap Agrizone was setting up locally.

“You need a good service outlet. I’ve always believed that it’s good having a tractor, but we need someone out here locally to service and maintain it. We decided to look at the Maxxum 125.”

Barker wanted a 125-140hp 6-cylinder tractor with a front-end loader, to tow a 13m3 feedout wagon.

“It had to be a decent size but I didn’t want a beast…. It’s an awesome tractor. It’s manoeuvrable getting into gateways, as it’s not a very long tractor. It seems to be a bit shorter for the same horsepower so it gets around easily. It’s also great for loading silage.”

Maxxum tractors are designed for livestock operations, rowcrop applications and roadside mowing. Features include cab visibility, thoughtfully designed controls and comfort, and good PTO, hydraulics and transport power boost.

Barker says the cab is well laid out, with everything located in a logical place. It is also simple to operate.

The Maxxum Multicontroller provides access to all tractor controls and moves with the seat, allowing better vision and control of the implement at work.

“These tractors are getting quite techno but with farm workers you need something that someone can just jump in and drive. The Maxxum is like that. We have two other workers operating it regularly and they have no trouble with it.”

The Case IH Maxxum 125 is also comfortable to oper-ate. The cab suspension reduces shock loads by 25%.

A power boost of up to 25hp can be achieved with the 6-cylinder Maxxum models, allowing work in tough con-ditions and on steep inclines without losing speed or pro-ductivity.

The engines have a high-pressure common rail fuel system that offers more power, faster throttle response, better fuel economy, less noise and lower exhaust emis-sions due to more efficient and more complete fuel com-bustion.

Ross Barker with his Maxxum 125

“These tractors are getting quite techno but with farm workers you need something that someone can just jump in and drive. The Maxxum is like that. We have two other workers operating it regularly and they have no trouble with it.”

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Page 38: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

38 RURAL TRADER

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Page 39: Rural News 20 January 2015

RURAL NEWS // JANUARY 20, 2015

RURAL TRADER 39

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Page 40: Rural News 20 January 2015

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