rural news #508 feb 7 2011

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fEbRuaRy 7, 2012: IssuE 508 www.ruralnews.co.nz

NelsoN farmers Ian and Barbara stuart couldn’t ask for better friends than Daniel rater and andrew Noakes (right). last week they were among six farmers from the district who ‘downed tools’ on their own properties to spend a day repairing fences ripped by December’s floods and slips on the stuart’s Cable Bay farm.But with several kilometres destroyed over the steep country, the task is far from done. Gavin o’Donnell, provincial president of federated farmers Nelson, mustered last week’s posse and hopes more will come forward.“I’d like to emphasise how great it has been having these guys here, and like to think when we organise another day there may be others with a little more spare time.”the stuarts say they appreciate what’s been done, as it’s “really hard work,” on such country.

Farmers rally to repair wrecked fences

Fonterra tips op2Stop TAF now!

RALLY BEHIND your Shareholders Council and empower it to veto TAF.

That’s the plea from South Canter-bury dairy farmer and Fonterra share-holder Leonie Guiney in the wake of

last week’s 50 meetings on the proposed Trading Among Farmers scheme.

But her reasoning isn’t so much what was said at the meetings, as the content of MAF’s consultation paper on Fonter-ra’s milk price setting, capital restruc-ture, and share valuation which was

released the week prior. “It’s all so com-pletely tied together. Government sees TAF as an opportunity to have an influ-ence on our milk price.”

She urges all shareholders to read that paper, and in particular clause 41a. It states ‘the interests of external

investors to maximise Fonterra’s profit would provide some counterbalance to the interests of Fonterra’s farmer-share-holders, whose interests are primarily to maximise the milk price Fonterra pays them as suppliers.’

“This isn’t about the 5% of milk on the domestic market. This is about all our milk, including the 95% we export,” she warns.

At the TAF meeting she attended Fonterra said Government or Com-merce Commission annual audits of milk price would be ‘frustrating, but we can live with it’.

“If our board doesn’t consider Gov-ernment regulation of our milk price to be a major issue then we’ve got a major governance failing.”

Redemption risk, an argument from TAF, can sensibly dealt with by reten-tions, Guiney adds.

While Guiney is calling for share-holders to throw out TAF completely, Fonterra chairman Sir Henry van der Heyden told Rural News he’s confident farmers will accept the co-op’s pre-ferred option, based on the feedback he received at seven farmer meetings.

“At the end of the meetings I have attended, a vast majority of farmers are telling us to just get on with it.”

Van der Heyden says farmers have been asked to give feedback online this month. “We have left it up to our farm-ers to decide which option they prefer.”

He says farmers are angry with the Government’s proposed changes to raw milk regulations and half the time at the meetings was spent on that issue.

Andrew SwAllow

OF THE three TAF options now on the table, Fonterra is recommending option two, a farmer-controlled trust to hold traded shares.

This option will give farmers “the comfort of direct control and owner-ship of the custodian”, according to Fonterra’s paperwork.

The Farmer Trust Custodian would be owned by a trust controlled directly by farmer shareholders. The other options are a custodian 100% owned by Fonterra, or individual farmers retain-ing legal title to shares they place with the fund.

Fonterra farmers were told they will collectively retain legal title to shares placed with the fund without additional layers of administration that would potentially make TAF too complicated to work effectively.

In contrast, keeping legal title with farmers carries significant downside risk because of its complexities and potential for value destruction, it says.

“The more complicated TAF becomes, the greater the need for detailed explanations as to why TAF needs to be so different to other invest-ment opportunities,” farmers were told.

The co-op says the custodian approach is a straight forward solu-tion that would achieve TAF objec-tives. It admits it’s not been explained as well as it should have in the past but remains confident TAF can be launched in November.

A final TAF package is expected before the board in the first half of this year for approval. The Shareholders Council will get the proposal by August.

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news 3

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issue 508www.ruralnews.co.nz

rural News // fEbRuaRy 7, 2012

landcorp confirms Crafar contractLANDCORP HAS signed a deal to effec-tively become a 50/50 sharemilker for Shanghai Pengxin who are buying the 16 Crafar farms.

The chief executive of the State Owned Enterprise, Chris Kelly, told Rural News the deal could see Land-corp make about $20 million in gross earnings in a good year. After paying its share of costs, the profit will be “in the order of a few million a year” which he believes is still a good deal.

While owning the farms might have

been the ideal situa-tion, Kelly says this arrangement is the next best thing.

Landcorp already manages a large number of farms for private compa-nies and the Crown, including nine dairy farms near Taupo and the country’s biggest farm, Moles-worth Station in southern Marlborough.

Kelly says the deal with Pengxin is a modified 50/50 sharemilking agree-ment and last minute details were still

being negotiated last week.“Pengxin gets roughly 50% of the

revenue. It’s not exactly a 50/50 deal but it’s close to it. Landcorp gets the other half of the milk cheque and both parties split the costs according to a schedule we have, which again is pretty close to a standard sharemilking arrangement.”

Landcorp will only be responsible for costs relating to repairs and maintenance and other operational costs such as feed. Any development costs will be met by Pengxin and this includes an initial injection of $15 million, but Landcorp will manage this

development spend for Pengxin.Kelly says about 70 staff will be

employed across the 16 farms, plus some ‘off-farm’ management.

“Currently there are sharemilking contracts in place for all the farms. We will honour these annual contracts and when they fall due those staff will be offered employment by Landcorp. If they don’t want to join us that’s fine; we will employ someone else.”

As Rural News went to press no date had been set for Pengxin and Landcorp to take over the farms but Kelly expects it will be in about two months.

Chris Kelly

FTa claim doesn’t wash with Parker

CLAUSES OF the Free Trade Agree-ment (FTA) cannot be used as a jus-tification for the Crafar farm sales to Chinese interests, Labour’s finance spokesman David Parker says.

Parker was Minister of Land Infor-mation when the agreement was signed in 2008 and says he checked that New Zealand’s ability to control land sales was not overruled by the terms of the FTA.

“The relevant clause 138 of the trade agreement they inter-

pret as saying you have to let Chinese investors invest on the same basis as New Zealand investors,” Parker told Rural News.

“That is not what the clause means… it means if a Chinese investment is made in New Zealand it must be dealt with under the same rules as [those applying to a] New Zealand investor.

“So you couldn’t apply a different RMA standard to an overseas person on the basis they were from overseas.

It doesn’t say you have to allow that investment in the first place.”

Parker says Prime Minister John Key and Land Information Minister Maurice Williamson have been “loose in lan-guage” over the Free Trade Agreement, following comments that China’s Most Favoured Nation status under the FTA

meant they couldn’t intervene in the deal even if they wanted to.

Professor Jane Kelsey at Auckland University also picked up on the PM’s comments about Most Favoured Nation status, as it was not in the Overseas Investment Office recommendation to the ministers.

She believes further legal advice was taken, that advice being that New Zea-land would face an international law-suit if it prevented the deal – a point she agrees with.

“I’m pretty sure from all the flags the Chinese have been running up over the

past 18 months that they would have taken some kind of action if the appli-cation had been declined,” she told Rural News.

However, Parker is adamant the Most Favoured Nation status under the FTA with China is being misinter-preted and does not prevent New Zea-

land’s control of land sales.“What it means is if you were to do a

trade agreement with the United States that had free investment protocols so they were free to invest in our rural land, then there would be a case for the Chi-nese to have their agreement amended to have the same thing apply to them. But that’s not what is happening here.”

Parker says the Global Financial Crisis has lead to trade imbalances in the world with countries like ours run-ning current account deficits and coun-tries with state wealth like China having huge surpluses. That puts them in the

position to always outbid New Zealand-ers.

Williamson, in background informa-tion released with the Crafar decision, says the FTA did not influence the deci-sion.

“Every application is decided on its individual merits and the outcome would be the same even if New Zea-land did not have a Free Trade Agree-ment with China.”

Kelsey says if the Government had advice other than the OIO’s recommen-dation, it should be released.

“Unless there’s further documenta-tion, we don’t really know what’s going on in Government.”

That could also shed light on why what appeared a relatively straightfor-ward application took nine months for the OIO and ministers to process, she says.

“I think it was about avoiding the electoral fallout. I don’t see any other reason why it should have taken so long.”

PAM TIPA & Andrew SwAllow

“You couldn’t apply a different rma standard to an overseas person on the basis they were from overseas. It doesn’t say you have to allow that investment in the first place.”

– David Parker

David Parker

Jane Kelsey

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NEW ZEALAND’S sec-ond-largest dairy proces-sor says the Government’s proposed regulation changes will stifle opening of new processing plants.

Open Country Dairy (OCD) has consent to build a dairy plant at Moerewa, Northland. But

it says the Government’s proposal to limit the 50 million L allowance of Fonterra raw milk to three years makes the project untenable.

“If we don’t get access to DIRA milk, that site will never be built,” OCD chairman Laurie Margrain told Rural News. “This means there will be no

competition for Northland farmers.”

OCD already operates a cheese plant in Waharoa, Waikato, and milk powder plants in Awarua, South-land, and Wanganui. The company has 500 milk suppliers.

Margrain says OCD will survive without Fonterra milk because it has been

operating eight years and is fully established. At the same time accessing Fon-terra’s raw milk allows it to start a new plant and build a new supply base.

The Government has released for public consul-tation proposals includ-ing a three-season limit for independent proces-sors who source raw milk

directly from farm-ers, and increasing the amount of milk avail-able to independent suppliers to about 5% of Fonterra’s milk supply. These processors are currently collectively limited to 600 million L or about 4% of the co-op’s total milk.

Margrain says newer companies wouldn’t cope. They couldn’t become an effective competitor in the mar-ketplace in the three year period, he believes.

“The purpose of

DIRA is to help inde-pendent processors commence opera-tions and become established. Remem-ber the new compa-nies are pitted against a co-operative that controls 92% of the market. And Fonterra is aggressively working to ensure it retains that dominance. We feel the

three-year period is too short.”

Fonterra says the proposed changes will have New Zealanders subsidising increasingly foreign-owned dairy processors who don’t sell milk in New Zea-land and who send their products and profits off-shore.

OCD is partly owned by a Singaporean com-pany. Other proces-sers with some overseas ownership include Syn-lait, Miraka and New Zealand Dairies Ltd.

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4 news

dIrA plan will stifle competition

SudeSH kISSun

laurie margrain

still open for submissions says ministerWHILE OCD says three years access to fonterra milk isn’t long enough, fonterra protested it’s too long, and that it’s forced to release too much milk.

Primary Industries Minister David Carter told Rural News the three-year period could be reconsidered in the review process.

“There is a possibility we look at transitioning it over three years or we shorten that period of time….

“That is the very reason we have put out a consulta-tion process and are asking for genuine, unemotional feedback so we can establish whether it be three years or whether it be longer or shorter.”

fonterra also slammed the suggestion it will have to supply 200 million L more milk to independent proces-sors over the next three years, saying it would cost the co-op $70m/year, a figure federated farmers inter-preted as a cost to each farmer of $6000-7000/year.

Dairy chairman Willy Leferink says while the three-year proposal is a step in the right direction, it needs to go further.

“If the Government wants new export entrants, then it needs to turn off the tap to those [already] receiving milk at the regulated price. “

submissions close february 24.

Produce processors’ ETS deadlines passLAST WEEK saw the deadline for pro-duce processors and fertiliser importers, among others, to register under the Emis-sions Trading Scheme pass on January 31.

ETS administrator the Environmental Protection Authority says the majority of large agricultural processors met the dead-line but it will continue to contact busi-nesses that haven’t to clarify if they have an obligation to register.

“This includes working with some small businesses that may be unclear whether their production levels reach the thresh-

old for registering for the scheme,” EPA’s ETS general manager Andrea Gray told Rural News.

Anyone unsure of their obligations should contact the EPA on 0800 CLIMATE (0800 254 628), she says.

“Staff are available to answer questions, provide advice and help participants reg-ister.”

If businesses continue to fail to register, EPA may initiate formal non-compliance measures. Maximum penalty for non-com-pliance is $8000 for a first offence.

LasT WEEK’s announce-ment that singapore-based New Zealander Tim bennett is the new chief executive at NZX leaves little doubt the market house has designs on deriving more business from dairy.

“Tim maintains a high degree of connectivity to asian and other exchange operators, and is very familiar with fonterra’s GDT offering, thereby bringing a strong international and domestic focus, particularly with regard to New Zealand’s leadership in agricultural markets,” it read.

bennett reiterated that, saying he’s keen to accel-erate the development of NZX’s markets.

“New Zealand plays a key role in agricultural commodi-ties globally and I’m looking to combine my experience with the foundation NZX has established in dairy futures to grow this area of the busi-ness.”

He takes over from departing chief executive Mark Weldon on May 7.

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news 5

nZ$ rains on beef’s paradeTHE NEW Zealand dol-lar’s strength is throwing a dampener on heady days for beef.

US export beef prices, and cattle futures, are at record highs as the drought in America has brought shortages around the world. And while the drought is over, there’s still a lack of stock because of that, says Beef + Lamb New Zealand chairman Mike Petersen.

“We are strongly influ-enced by US dollar in farm gate returns and that is going to weigh a bit heav-ily on the farm gate price for farmers over next few months. I’m confi-dent about the medium

to long-term outlook for beef but the value of the dollar is impacting at the moment.”

Prices have been coming back quickly. In the North Island, sched-ule prices have dropped to $4.30/kg from $4.90/kg only about three weeks ago, says Petersen.

But Meat Industry

Association chairman Tim Ritchie says “there doesn’t seem to be too many dark clouds on the horizon.”

“Like sheep meat, supply and demand is in our favour. The New Zea-land dollar is always the nasty one – we have seen that in sheep meat. In the last month or so it’s moved about 8-9% and that impacts the farm gate prices.”

Beef+Lamb executive director Rob Davison says the US market looks posi-tive, with low cattle num-bers and high prices. But North America represents about half our beef exports and 35% of export receipts. The position is not so clear with other markets.

The beef market by

PAM TIPA

aNZCo flags procurement issuebaRRING aNy major shock globally, beef prices are in a steady to slightly-upward trend, says Peter Conley, chief executive of the beef division, aNZCO foods.

“support for beef globally remains resilient. some countries are liquidating herds; while it’s putting meat into the market place it’s creating opportunity.

“New Zealand’s position as a lean-beef supplier to overseas markets coming in at the bottom end of the beef food chain is good for us. Even if people trade down within the beef sector they will still eat a lot of ground beef prod-ucts.”

However, volatility in Europe could impact our business there at the high-value end. a 10% movement in the NZ$ since December – up from us76c to us83c at the time of going to print – is hitting processing margins. Market prices have not gone up 10% and procurement costs on average have stayed about the same.

“The signal I would give to any farmer is that pricing here in New Zealand at the farm gate is reflective more of the

current situation where you’ve got processing overcapacity and lack of kill. farm gate pricing at the moment isn’t truly reflective of market returns.

“Pricing at farm gate needs to reflect the movement in the dollar because that hasn’t been reflected over time.

“We can live in the 70s (kiwi against greenback) but as we push up into the 80s it starts to become extremely diffi-cult.”

Conley says processors are chasing what is out there now but as more cattle comes onto the market, procurement prices may ease.

The overcapacity issue is a global one, and there will be consolidation, he believes.

“There’s a report out in the us this week that cattle processors are losing us$125 a body just to run an animal through the plant.

“They are looking for throughput and having to pay the dollar.

“ This reflects the way those interna-tional kills have eased up which creates the opportunity in the marketplace with less supply and more demand.”

volume is North America 49% (within this the US is 42%), North Asia 26%, South Asia 12%, EU 4% and ‘other’ 9%.

Beef+Lamb’s Washing-ton representative Andrew Burtt says in his weekly

report the US Department of Agriculture had released its estimates of cattle on feed (and sheep on hand) as at January 1, 2012. Both were down 2% nationally to the lowest level in 60 years for cattle.

There were marked differences by region, particularly because of the drought in the south-west.

The number of cattle in Texas was down 11% on the same time in 2011.

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Cull cuts geese by a thirdFEDERATED FARMERS High Country estimates Canada geese numbers have been cut by about a third in the South Island control group’s first moult cull of the pest since declassification.

“We estimate about 18,000 geese have been [killed] but private control operations and individuals unconnected to our group would have taken more,” says section chairman Graham Reed.

“We also estimate the South Island population of Canada geese has been reduced to about 40,000 birds. That’s still double what Fish & Game agreed to

in the 1995 South Island Canada Goose Management Plan.”

High country farmers, Christchurch International Airport and others did the cull, with help from DOC.

Reed says Canada geese are an aggres-sive environmental pest, competing with native waterfowl for food and nesting sites, and a danger to aircraft.

Government offered the control group up to $100,000 for a one-off kill to replace F&G’s control obligation. The cull was carried out in the same way as F&G’s, meeting MAF guidelines.

“This trend is expected to result in cattle and beef prices continuing upwards,” the report says.

But he says the US packing industry is suf-fering its most negative margins in many years as it pays higher prices for live cattle while continu-ing to struggle to extract higher prices at the whole-sale level.

Reduced beef supplies – because exports have grown sharply in response to overseas demand – and the weakness of the USD, seem to have had little impact.

Burtt says National Beef Packing, the fourth-largest beef processor, reported a 73% drop in earnings in the last quar-ter of calendar 2011 due to beef sales prices being 16% higher while live cattle prices increased 21%.• Halal opportunities: p15

mike Petersen


news 7

all that will be irrigated...PRIMARY INDUSTRIES Minister David Carter checked out the site of the proposed Ruatani-wha Plains Water Stor-age Project dam last week, with Hawkes Bay Regional Council’s Andrew Newman.

The $170 million project landed the first grant from MAF’s Irriga-tion Acceleration Fund,

$1.67m to be matched by HBRC and used for a feasibility study. The dam on the Makaroro should provide irrigation to 22,000ha in Central Hawkes Bay and improve water quality and summer flows in the Tukituki River and its tributaries.

Carter says climate change will make it more difficult to farm on the

East Coast. “Where we have opportunities to develop water storage, for the sake of future genera-tions, we have an absolute duty to do so.”

Farmer Craig Pres-ton, whose land will be affected by the dam, echoed that. “Imagine if our forefathers hadn’t had the courage to build dams on the Waikato river.”

lessons from uS water woes?

AMERICA’S WATER management is a mess and while New Zealand doesn’t have the population pressures and pollution levels of the US, a world authority on the subject says we risk creating a water catastrophe of our own.

“First in, best dressed’ doesn’t work with water,” Prof Robert Glennon of Arizona last week told a Ham-ilton audience during the first of his four Royal Soci-ety lectures.

Quoting Benjamin Franklin’s 1774 statement “when the well’s dry, we know the value of water”, Glennon forcefully brought home just what can, and is, happen-ing to his country, where water rights have been too freely available to anyone at no cost. He likened the US system to a milkshake, where an unlimited number of straws were allowed into the glass, with no knowledge of the original quantity.

Not only has unlimited groundwater pumping low-ered levels (in some places up to 10m in 50 years), but major aquifers have now been measured at levels up to 150m lower than a century ago.

Also, after building dams in every possible site across the country, they are now removing hundreds of them because of the river pollution caused by slow-ing streams.

There is now a slowly growing movement to reuse and recycle water in a few cities, despite claims by such as Dianne Feinstein of a “God-given right to water gar-dens and lawns” in low rainfall areas such as California.

Sue edMondS

dam plan prompts cost concernsTHE LEE Valley Dam, Nelson, will become a compulsory scheme for all landowners living within its zone of effect, under a draft proposal to be released this month.

The proposal, part of Tasman District Council’s 10-year annual plan, is that rateable land owners would contribute to the $42 million project, even if they don’t have a right to irrigate or have only a domestic bore.

Revised costings presented to irrigators at water zone meetings before Christmas put the indicative capital charge at between $420 and $520/ha/year plus $50-70/ha/year operating cost.

People with land that could be irrigated as a result of the scheme will be obliged to pay, whether they opt to use the water or not. They’ll also pay in their rates an estimated $100/year extra, as will those living in Nelson city, to help finance the scheme. That $100/year is separate from any other rate increases.

Tasman District Mayor Richard Kempthorne acknowl-edges the cost concerns. “But these costs were foreseen.”

If buy-in to the dam were optional it would be more expensive for those using the water, and less certain to go ahead, he adds.

The Waimea Plains are the heart of the region’s hor-ticultural industry and like other areas have had ongo-ing problems with water supply for irrigation, urban and industrial use. Resources are over allocated by as much as 22%.

The dam is seen as vital to alleviate this and ensure an ongoing reliable supply. The aim is for construction to start mid 2013.

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news 9working time changes prove handy

THE SEASON has gone haywire as far as rural con-tractors are concerned.

Roger Parton, Rural Contractors, says the inconsistent weather all around the country is making sowing and har-vesting difficult and work is piling up.

He knows of one cont-ractor with 68 jobs wai-ting to be done but can’t do them because of the weather.

“This situation is cau-sing a huge amount of frustration to farmers and contractors alike. Cont-ractors simply can’t be in two places at once and everyone wants everything done all at once.”

Parton says about 20 contractors have applied for exemptions or varia-tions to the work time and rule book laws which would allow them to legally work longer hours.

“This situation high-lights how dependent we are on the weather. The reality is that when the opportunity presents itself

and the weather is right you just have to go and get the job done otherwise you’re going to lose the crop altogether. It’s a huge problem.”

Some parts of the country have had little rain, others too much and there’s been snow and high winds in other places, he says.

Some crops have gone in late and this may affect them in the long term, but again this depends on the weather.

Meanwhile, progress is being made with the Ministry of Transport to change a suite of rules and regulations relating to the agriculture sector, Parton says.

“The Agricultural Tran-sport Forum, which inclu-des Feds, is working with MOT and we hope to have a solution by early March. At that stage MOT will put these changes out for consultation which will involve holding three or four meetings in April.”

Once this is done and some consensus is reached, MOT will set

PeTer burke in train the necessary changes. These may include legislation, but more likely just rule changes or Orders in Council.

If all goes well, this could be done by the end

of the year, the changes taking effect in April 2013.

uni’s to offer farming 101MANAGERS WORKING in agribusiness who don’t have a farming background are the target of a new joint initia-tive by Massey and Lincoln Universities.

“We’ve heard from human resources managers that there’s a real need to accelerate some of their employ-ees’ ability to understand who they are working for, the objectives of the company and to get a wider understanding of agriculture,” says Mark Jeffries of Massey Univer-sity.

The result is a series of courses aimed to teach the basics of farming and even some farmer lingo, with the first course focusing on ‘conversa-tional agriculture’.

Jeffries says a lot of highly quali-fied, formerly non-agricultural pro-fessionals are being recruited by the likes of Fonterra, Zespri and others.

“The aim is for these people to increase their knowl-edge and for them to become more conversant with the farming seasons, the terminology and the practical aspects of farming.”

Other courses will target those who may have been with agricultural firms for some time but are keen to brush up their skills.

“We believe there is a real market for this type of train-ing.”

Courses will involve about 50 hours of learning: some online, some residential, some on farm. A farm risk man-agement course is also planned.

mark Jeffries

a growthy season in most

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news 11

euro crisis adds to pipfruit painBUSINESS CAN’T get much tougher for Nelson apple growers, and if it does, many of the older ones will quit rather than burn their equity.

Growers and Pipfruit New Zealand told Rural News the hard times in Europe, and the euro at a record low against the kiwi, mean Nelson apples will make their growers little money – if any.

And they cannot simply switch produce into Asian markets; these demand different varieties, and changing takes about three years.

Pipfruit New Zealand chairman Ian Palmer says it’s “dire”. Three years of losses are now com-pounded by recent bad weather and a difficult growing season; late and prolonged flowering will affect fruit volumes, size and quality. Many grow-ers now face the dilemma of losing more money or quitting.

“What we are experi-encing now is unprece-dented. Normally we will have some difficult sea-sons then a good one in the middle to balance things out, but unfortu-nately this time we haven’t had that good one. At the current exchange rate we are definitely looking at a difficult year.

“If returns don’t improve it is inevitable some growers with high debt levels will go under. With the kiwi dollar at 62c against the euro – com-pared with 55c last year – there is no way growers

can make any money; they are losing $6-7 per carton just in foreign exchange.”

Palmer is urging growers to talk to their exporters about the risk of exporting to Europe versus sending at least part of their crops for pro-cessing, to take advantage of a higher fixed-contract price offered by Enzafoods this year.

“I think they have to analyse their crop and where it’s going and see if there is a return in doing so.”

Alan Rowling, Mariri, a grower for 40 years, faces the “toughest economic conditions... in all his years in the business”.

“The industry has always had its ups and downs [in] prices and you need the odd good year to pull you through but that hasn’t happened for a few years.

“We’re trying to get a lot more into the Asian market but it takes time; there is a lot of expense changing varieties and it doesn’t happen overnight, it takes two or three years. “Growers are in a bind because the equity they have built up has been eroded over the past few years and they have little capital to reinvest in plant-ing new varieties better suited to Asia.

“And many growers are getting older – there aren’t so many young guys in it now. A young guy will fight and fight to survive but an older person will say, ‘well I’m just burning up my equity and I may as well get out now’.”

Palmer agrees, saying

bArbArA GIllHAMmost growers have little money to redevelop and must now maximise what they grow, which in Nelson region are Euro-pean varieties.

“It’s a case of getting through this season; farm-

ers are resilient people, our horticulturalists in particular.”

rural support trust at ready for growers

motueka grower alan rowling says times are

as tough as he’s known in 40 years.

THE TOP of the south branch of the Rural support Trust has been called in to help desperate Nelson pipfruit growers, offering counselling and helping organise financial advice and welfare assistance.

It is already working with some smaller orchard-ists and expects numbers will increase as the effects of the dire season kick-in, co-ordinator Ian blair told Rural News.

“The trust is here to help people under stress; we are not here to necessarily save them as we have no money for refinancing but what we can do is give them support; help them talk to their banks or financial advisor, and ensure they access help from Work and Income and the district health board if they are in a really anxious or depressed situation.”

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12 news

Cultivar CROP VARIETY testing systems the world over are inherently misleading and New Zealand’s are no exception, says a leading wheat breeder.

John Blackman, the man behind many top per-forming cultivars over the years, such as Equi-nox, Raffles and Robi-gus, believes trials should include plots grown to the breeder’s prescription.

The problem with the standard treated versus untreated approach is that all varieties on a site get the same management, with nothing tuned to the cultivar.

“We need to rethink the way we trial varieties,” he told Rural News.

Besides the issue of one-size-fits-all agron-omy (same sowing date, seed rate, fertiliser, fun-gicides and pgrs) on trial plots, growing early and late varieties, and short and tall varieties side by side – or however the randomised plot design dictates – also causes problems.

Tall types are favoured because they get more light, and late types because they don’t suffer the same amount of bird damage, he explains.

“Birds only need to take two grains per ear

and that’s a 4% yield dif-ference. But when you look at the plots, most people wouldn’t even notice two grains miss-ing.”

Rain late in the grow-ing season can also skew results, again favouring later maturing types, as it did in the UK’s 2011 har-vest.

Surrounding crops seem to have an influence, boosting the result of the cultivar that’s the same as the crop. “If you want a variety to yield the most in a trial, do the trial in a field of it.”

Site selection is also key, and he’s critical of the spread in New Zea-land where he says there are too few with high yield potential.

“If it isn’t high yield-ing, it’s not relevant. The yield potential of wheat here is 18-20t/ha in the right season, so you need to work with farmers who are regularly achieving 15t/ha. It is crucial to take account of site and sea-sonal characteristics in interpreting variety per-formance,” he stresses.

And where wheat trials are irrigated, managers need to resist the temp-tation to keep topping up the moisture, as do grow-ers with irrigation.

“There’s a tendency to keep the water topped

Andrew SwAllow

No record breakers likely this seasonCONTRaRy TO to comments from some in the industry, this season’s wheat crops do not look world record breakers, says blackman.

“They’ve died from the top, and had too much leaf. The ears are big but that’s a lot of show. They’re quite lax and open and the grain isn’t particularly big.”

Two years ago when there were some “phenomenal yields” wheats were still green in late January, in contrast to this year, he notes. “They were stressed in 2010, but they stayed green.”

No moisture stress during stem extension – leading to lush, leafy growth, and in turn disease – has been the problem this year.

“septoria came in at an early stage and because people aren’t used to it here they went in with their usual low-dose fungicides, and the sprays didn’t penetrate the lush canopy.

“and across chunks of Canterbury there’s ear fusarium too. Even where appropriate controls were applied it’s there.”

That suggests earwash dose rates weren’t high enough, and there’s a possibility of infection occurring post flowering where crops stayed wet for a few days.

Leaf rust, while generally well controlled by fungicide, has been at unprecedented levels in untreated plots, with even stem rust, a rare visitor to New Zealand, seen in some, he adds.

Biodiesel subsidy uncertain, contracts promisedCONTRACTS TO sow oilseed rape for bio-fuel will be available later this month despite the three-year subsidy under-pinning the crop coming to an end in June, says Biodiesel New Zealand.

“We’d like to see a decision as soon as but unfortunately the minister [Phil Hegley] has only just got his feet under the table,” Andrew Simcock, general manager of the Solid Energy subsidiary, told Rural News.

This summer 60 growers with “several thousand hectares from Manawatu to South-land” are harvesting the yellow-flowered,

black-seeded crop. “The yields have been excellent, partly because of the season, partly because of the agronomic support... last year a shade under 3t/ha was the average. This year it’s about 4t/ha with some growers significantly exceeding that,” says Simcock.

When spring-sown yields start to come in they will drop the average, he acknowledges. “But all the same the spring crops are looking sensational.”

Autumn-sown crops, which make up more than two-thirds of this harvest, were con-tracted at $770/t, a price set last year based on

the price of competing crops such as cereals, the price of diesel and feed prices.

“We’ve sold all our meal for this year and we’ve had good acceptance by the farmers who have used it as feed.”

Marketed through Viterra, the cold press process BNZ uses means its meal has slightly higher oil and hence energy content than imported meals, which have typically had the last of the oil extracted using the solvent hexane.

Until June a subsidy of 42.5c/litre of pure biofuel is available.

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news 13

trials flawed here and abroadright up because that’s what the irrigation people tell you to do, and you do need to with potatoes and grass. But winter wheat?

“We don’t really know, because no-one has done the work with these European winter varieties, but I don’t believe you do... winter wheat needs

to be stressed.”When it comes to

interpreting trial results, too much emphasis goes on yield, without taking account of the factors behind that.

“As breeders we have to try to make sense of it all. If we just went on yield this year we’d be likely to

pick a tall, late variety, just like they have in the UK... You need to be [in the trials] earlier to tell any-thing.”

Blackman accepts there have to be some compromises to keep trial design and cost practical, but believes current systems are

over-simplified, and the industry could do better.

However, after decades in the business, he’s philo-sophical about the likeli-hood of change.

“You know my philos-ophy: breed good variet-ies which occasionally, by accident, get recom-mended.”

about BlackmanafTER a long career with uK-based breeder CPb Twyford and the uK’s Plant breeding Institute before that, blackman eight years ago set up his own plant breeding and agronomy business, splitting his time between New Zealand and the uK. He made his first wheat crosses on his own account here in 2004 with a view to producing lines suitable for the New Zealand market and, after the usual six-seven years it takes to produce and trial a pure breeding cultivar by the pedigree system, last year saw the first commercial crops of two sown. “There’s about 600ha of each.”

This year he’s releasing four more, including uK Group 3-type varieties Delphi and Monterey, again through his New Zealand agent, Canterbury seeds.

blackman is guarded about their characteristics and how to grow them – “that’s our usP” – but says they’ve all been trialled here for three or four years and they’re “pretty confident” they’ll perform, provided they’re posi-tioned right. “They’re all different. The problem New Zealand has is that from a breeder’s point of view it’s a niche market. There’s only about 300,000t of wheat grown. That’s not even as big as the uK’s seed produc-tion, yet you need just as many varieties because you’ve got a huge variation in sites and rotations.”

With the exception of his own, none of the mainstay wheats were bred with the New Zealand market in mind, he says.

“Wakanui was bred in Denmark.”wheat breeder John Blackman.

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14 worlduS beef needs traceability

US CATTLE producers are risking a lucrative export industry by dragging their heels on cattle identifica-tion (ID) and traceability systems compared with other beef exporting coun-tries and beef importers.

Kansas State University economist Glynn Tonsor

says the implications of his study are particularly trou-bling. US cattle prices are at record highs because of soaring beef exports, but Tonsor says the compar-ative disadvantage over cattle ID puts these and future export gains at risk.

He says while US con-sumers have largely trusted US beef produc-

AlAn HArMAners and have not pushed for cattle ID, that could change quickly.

The beef indus-try should consider this before a lack of ID and traceability costs busi-ness at home and abroad, Tonsor says.

“As major meat import-ing and exporting coun-tries adopt mandatory animal and meat track-ing systems, the US risks becoming less competitive and risks losing market access.”

To offset costs of expanding cattle and swine traceability pro-grammes (assuming a par-ticipation rate of 20% of production) an increase in beef exports of 1% (8.85 million kg) and pork exports of 0.5% (9.84 mil-lion kg would be required. The US exported 63.5 mil-lion kg and 117 million kg of beef and pork to South Korea, respectively, in 2009.

“Thus, the costs of expanding traceabil-ity could be easily offset by gaining access, or not losing access, to a single country,” Tonsor says. “The costs of implement-ing a 100% participation traceability system in the beef and pork industries could be offset by increas-ing beef exports by 29.5% (259 million kg) and pork exports by 3.4% (63 mil-lion kg).”

In other words, to make full traceability investment economically viable, the US would need to gain (or avoid the loss

of ) market access to one country such as Mexico for beef or South Korea for pork. “Given the increas-ing role of international trade in livestock and meat industries, these findings warrant serious consider-ation by US industry lead-ers and policymakers.”

He points to 2003, when the US exported US$3.14 billion of beef and veal products, but this crashed to US$550 million in 2004 following the dis-covery of a single US cow infected with bovine spon-giform encephalopathy (BSE).

The BSE discovery closed most export mar-kets to US beef for at least part of 2004, but by 2010 total US exports of beef and variety meats climbed back to 83% of their pre-BSE level.

“Cattle traceability, or lack thereof, could… impact market access to particular export desti-nations,” Tonsor says. “Effective cattle trace-ability would likely re-open closed markets more quickly and is also likely to help the US retain market access to a particu-lar import country…. Simi-larly, if an import country imposes traceability as a necessary condition for beef imports, only prod-ucts that are traceable would have access.”

Of the world’s eight largest exporters, Tonsor says, six have adopted mandatory cattle animal identification and trace-ability systems.

World’s 9th warmest yearTHE AVERAGE global surface temperature in 2011 was the ninth-warmest since 1880, and now nine of the 10 warmest years in the modern meteorological record have occurred since 2000.

The US National Aeronautics and Space Adminis-tration’s (NASA) Goddard Institute for Space Studies, which monitors global surface temperatures, released an updated analysis showing temperatures around the globe in 2011 compared to the average global temperature from the mid-20th century.

The data shows how Earth continues to experience warmer temperatures than several decades ago. The average temperature around the globe in 2011 was 0.51 C warmer than the mid-20th century baseline.

“We know the planet is absorbing more energy than it is emitting,” institute director James Hansen says. “So we are continuing to see a trend toward higher temperatures. Even with the cooling effects of a strong La Niña influence and low solar activity for the past several years, 2011 was one of the 10 warmest years on record.”

loss of trade to just one country could outweigh beef traceability costs, warns a us economist.

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world 15

aussies ID lamb tenderness genes

AUSTRALIAN RESEARCHERS have discovered genetic markers for tenderness in lamb, expected to allow pro-ducers to manage their flocks for eating quality, and to increase lean meat yield and productivity.

Sheep Co-operative Research Centre (CRC) meat pro-gramme leader Dave Pethick says the common view that lamb is potentially always tender, juicy and flavoursome is incorrect.

“CRC has found that even with the best meat process-ing techniques, there is a wide variation in lamb eating quality and it is now clear this variation has a significant genetic component.”

Commonly, genetic selection for increased growth and muscling invariably leads to tougher and less flavoursome meat. CRC has linked its genetic testing with consumer taste testing and found the lambs with the tenderness genes come out on top. CRC chief executive James Rowe says the science behind the measurement of eating quality attributes is difficult and expensive. “But recent progress in genomic technologies will enable more accurate selec-tion of young rams with the genes to ensure eating qual-ity and increased productivity.”

CRC has a broad programme to provide sheep breed-ers with the ability to use DNA testing early in an animal’s life to identify a wide range of traits including meat quality and wool length. “This will deliver producers with faster improvements in their flocks and a better balance in their ram selection and breeding programmes,” Rowe says.

AlAn HArMAn

Halal deal opens Muslim marketsTHE BEEF industry is hoping to make new inroads into the tricky but potentially huge halal market this year includ-ing regaining some of its former $31 million trade to Malaysia.

Indonesia is also a potential growth market if consumer demand over-comes recent introduction of interventionist policies.

Meat Industry Associa-tion chief executive Tim Ritchie says in 2005 New Zealand exported 8000 metric tonnes of halal beef worth $31million to the Malaysian market. But after Malaysian inspectors found fault with the New Zealand halal system, our licensed halal meat plants fell from 41 to just two.

Last year only 1600 tonnes worth $11.2 million was exported to Malaysia.

But a framework put together by the MAF in conjunction with the Malaysians will not only see at least some of that trade restored, but could encourage more beef exports to other Muslim countries. Already 14 plants are now approved to export to Malaysia including five beef, five sheepmeat and four multi-species.

“This is the first step. We are looking for another audit of more plants this year. It is important we maintain that momen-tum,” says Ritchie.

Meanwhile Ritchie hopes common sense will prevail in Indonesia which has a rising middle class

with greater demand for beef. It was our second-biggest market in 2010, but “for political rea-sons they started talking about self-sufficiency and the need to create greater domestic production”.

They introduced a quota system last year which heavily cut our halal exports to them.

“But with rising con-sumer prices, and domes-tic consumers unable to access products, we would hope common sense will prevail and they will be more market focused.”

Meanwhile a frame-work for processing and storage of halal products, hammered out by MAF with the Malaysians, could be important in opening up other Muslim markets. The work put into reach-

ing the agree-ment was recognised last year when MAF won an award for best service pro-vider at the World Halal Forum.

“It sets out what we do in the process-ing sense and the storage of product a bit like the meat hygiene regulation,” Ritchie says.

“It’s a framework and a set of rules; this is how NZ will process its halal product and so it’s pro-vided something very tan-gible that can be audited against. “ Several certi-fying authorities ensure processes stick to the stan-dard and can be used when

dealing with overseas halal authorities.

“It’s a really important part of our business, one we take seriously, one we try to get the competitive advantage by doing prop-erly. The world has looked carefully at what New Zea-land is doing in this area. And we are doing it in a way that incorporates our animal welfare consider-ations.”

PAM TIPA

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Lamb Market Trends Beef Market Trends

Lamb Prices

c/kgCWT ChangeLast Week

2 Wks Ago

Last Year

NI Lamb YM - 13.5kg -10 7.16 7.26 6.06

PM - 16.0kg -10 7.18 7.28 6.08

PX - 19.0kg -10 7.20 7.30 6.10

PH - 22.0kg -10 7.21 7.31 6.11

Mutton MX1 - 21kg -10 4.40 4.50 4.00

SI Lamb YM - 13.5kg -10 6.73 6.83 5.86

PM - 16.0kg -10 6.73 6.83 5.88

PX - 19.0kg -10 6.73 6.83 5.90

PH - 22.0kg -10 6.73 6.83 5.91

Mutton MX1 - 21kg -10 3.98 4.08 3.95

NZ Slaughter Estimated Weekly Kill

1000s Change2Wks Ago

3 Wks Ago

Last Year

5yr Ave

Lamb NI -15% 199 233 253 320

Lamb SI -21% 373 472 241 416

Lamb NZ -19% 573 705 494 736

Mutton NZ +45% 224 155 283 205

Export Market Demand

ChangeLast Week

2 Wks Ago

Last Year

5yr Ave

UK Leg £/lb n/c 1.90 1.90 2.45 1.59

NZ$/kg -9 8.00 8.09 11.11 8.54

Procurement Indicator

Change2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI -0% 92.5% 92.7% 54.9% 38.4%

% Returned SI -2% 85.6% 87.1% 53.1% 49.7%

Venison Prices

ChangeLast Week

2 Wks Ago

Last Year

5yr Ave

NI Stag - 60kg -20 7.50 7.70 7.20 6.47

SI Stag - 60kg -20 7.45 7.65 7.35 6.77

NZ Weekly Lamb Kill

0

150

300

450

600

750

Oct Nov Dec Jan Feb Mar

Last Year

This Year

Demand Indicator - UK Leg Price

£1.60

£2.10

£2.60

Nov Dec Jan Feb Mar Apr

Last Year

This Year

Procurement Indicator - South I.

45%

55%

65%

75%

85%

95%

Nov Jan Mar

Last Year

This Year

Procurement Indicator - North I.

50%

60%

70%

80%

90%

100%

Nov Jan Mar

Last Year

This Year

Beef Prices

c/kgCWT ChangeLast Week

2 Wks Ago

Last Year

NI P2 Steer - 300kg -10 4.45 4.55 4.30

M2 Bull - 300kg -20 4.45 4.65 4.25

P2 Cow - 230kg -10 3.55 3.65 3.30

M Cow - 200kg -10 3.40 3.50 3.20

Local Trade - 230kg -10 4.45 4.55 4.30

SI P2 Steer - 300kg -5 4.30 4.35 4.05

M2 Bull - 300kg -5 4.30 4.35 3.95

P2 Cow - 230kg -5 3.35 3.40 3.05

M Cow - 200kg -5 3.25 3.30 3.00

Local Trade - 230kg -5 4.30 4.35 4.00

NZ Slaughter Estimated Weekly Kill

1000s Change2Wks Ago

3 Wks Ago

Last Year

5yr Ave

Cattle NI +15% 38.8 33.8 47.5 42.9

Cattle SI +8% 14.1 13.1 11.7 11.6

Cattle NZ +13% 52.9 46.9 59.2 54.5

Bull NI +14% 18.5 16.2 19.6 18.3

Bull SI +33% 3.6 2.7 3.1 2.9

Str & Hfr NI +24% 15.4 12.4 20.0 16.9

Str & Hfr SI -4% 7.0 7.3 6.1 6.7

Cows NI -6% 4.9 5.2 7.9 7.6

Cows SI +13% 3.5 3.1 2.5 2.0

Export Market Demand

ChangeLast Week

2 Wks Ago

Last Year

5yr Ave

95CL US$/lb n/c 2.13 2.13 2.05 1.51

NZ$/kg -13 5.72 5.85 5.85 4.79

Procurement Indicator

Change2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI -2% 81.3% 82.9% 70.95% 70.6%

% Returned SI +1% 76.0% 75.2% 66.7% 66.2%

NZ Weekly Beef Kill

0

20

40

60

80

Oct Nov Dec Jan Feb Mar

Last YearThis Year

Demand Indicator - US 95CL Beef

$1.70

$1.90

$2.10


Last Year

This Year

Procurement Indicator - South I.

55%

65%

75%

85%

Nov Jan Mar

Last Year

This Year

Procurement Indicator - North I.

60%

70%

80%

90%

Nov Jan Mar

Last Year

This Year

Market Snapshot Meat

North Island South Island

c/kgCWTChange

c/kgLast Week

Changec/kg

Last Week

Lamb - PM 16.0kg -10 7.18 -10 6.73

Steer - P2 300kg -10 4.45 -5 4.30

Bull - M2 300kg -20 4.45 -5 4.30

Venison - AP 60kg -20 7.50 -20 7.45

North Island 16.0kg M Lamb Price

$3.5

$4.5

$5.5

$6.5

$7.5

$8.5


5yr Ave

Last Year

This Year

South Island 16.0kg M Lamb Price

$3.5

$4.5

$5.5

$6.5

$7.5

$8.5


5yr AveLast YearThis Year

North Island 300kg Bull Price

$3.0

$3.5

$4.0

$4.5

$5.0



South Island 300kg Steer Price

$3.0

$3.5

$4.0

$4.5


5yr Ave

Last Year

This Year

North Island 60kg Stag Price

$6.0

$7.0

$8.0

$9.0



South Island 60kg Stag Price

$6.5

$7.5

$8.5

$9.5


5yr Ave

Last Year

This Year

Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted). Note: Freight is paid in the North Island but not by all companies in the South Island.


Beef Knife taken to beef prices in the North Island 300kg cwt bull prices in the North Island were sliced by another 20c/kg last week taking average prices to $4.45/kg. Prime steer prices are also back to $4.45/kg on average. Capacity has been cut back at some plants as they are not prepared to loose any more money on killing. Two short weeks of kill in the last fortnight with Auckland anniversary last week and Waitangi day this week have worked against operating prices. Indications point to an ample supply of stock for slaughter and processing space is now becoming an issue. After these two short weeks its unclear how the kill will pan out. Export cattle slaughter prices in the South Island this week saw 300kg cwt bull and steer prices pull back slightly with both now averaging $4.30/kg. In some areas the cattle are flowing out and this seems to be confined to areas where feed hasn’t been an issue. The cattle through Otago and Southland have hardened off in some cases and still requiring finishing which has tightened numbers in these areas.

US importers hungry for beef The US imported beef market continues to break records with prices remaining upbeat. US imported 95CL bull prices have hit US$2.13/lb already overshadowing last years record price achieved in April of US$2.10/lb. Imported 90CL prices are also tracking higher at US$2.03/lb. Strengthening US domestic cow prices, due to tighter supplies and a lack of imported beef continue to underpin the market which looks set to remain strong throughout 2012.

Lamb Lamb prices feeling the heat The North Island lamb kill is ramping up giving meat companies more room to pull back prices, especially as some deal with short processing weeks. Most meat processors dropped their schedules by 10c/kg last week. A 16kg lamb is now $7.18/kg (net) on average. It was a similar scenario in the South Island last week with export lamb prices also feeling the pressure. Export lamb slaughter prices slipped to $6.73/kg (net) last week. The fall in prices can be attributed to the weak overseas markets, the strong dollar and an increasing kill. Shipping is underway for the Chilled Easter market which is expected to run until the end of February. Indications point to the real pressure coming on operating prices once the Easter Trade period is completed. This is largely due to the overseas market remaining tough going with in-market prices failing to hold up to last year’s levels.

Could the good run be coming to an end? Current lamb prices remain over $1/kg better than this time last year purely on the back of tighter supplies. But as exporters note the overseas markets are less than positive right now. UK market prices for some NZ lamb cuts are down by as much as 55p/lb on this time last year. At the same time a much stronger dollar is further carving into returns. There is still some interest from the UK market but clearly it comes at a price. In the EU market, indicator prices for some NZ lamb cuts are better than a year ago however the stronger exchange rate continues to erode any benefits. Market returns to the US and China are better than 12 months ago but the volumes sent to these two markets hardly warrant the higher schedules.

Venison Venison prices continue to head south Venison prices continue to drop as more deer flow into the processing plants and overseas market demand remains subdued. Some plants particularly in the South Island are reporting delays of up to two weeks. Indicator prices for a 60kg AP stag in the North Island last week eased to $7.50/kg while South Island prices came back to $7.45/kg.

Currency Watch

vs. NZ DollarLast Week

2 Wks Ago

4 Wks Ago

Last Year

US dollar 0.821 0.802 0.778 0.773

Euro 0.626 0.619 0.601 0.564

UK pound 0.524 0.518 0.501 0.486

Aus dollar 0.773 0.771 0.761 0.781

Japan yen 63.53 61.83 59.81 63.92

Euro

0.51

0.56

0.61


Last Year

This Year

UK Pound

0.45

0.50


Last YearThis Year

US Dollar

0.70

0.80


Last YearThis Year

Wool Price Watch Dairy Price Watch

Indicators in NZ$ Change 26-Jan 19-JanLast Year

Indicators in NZ$/T ChangeLast 2 Wks

Prev. 2 Wks

Last Year

Coarse Xbred Indic. -19 5.15 5.34 5.28 Butter -137 4830 4968 6168

Fine Xbred Indicator -10 5.66 5.76 5.52 Skim Milk Powder -123 4332 4455 4742

Lamb Indicator -10 5.33 5.43 5.72 Whole Milk Powder -129 4534 4663 5123

Mid Micron Indic. -2 9.08 9.10 8.13 Cheddar -145 5095 5240 5836

Overseas Price Indicators Overseas Price Indicators

Indicators in US$/kg Change 26-Jan 19-JanLast Year

Indicators in US$/T ChangeLast 2 Wks

Prev. 2 Wks

Last Year

Coarse Xbred Indicator -10 4.21 4.31 4.05 Butter n/c 3875 3875 4650

Fine Xbred Indicator -3 4.62 4.65 4.24 Skim Milk Powder n/c 3475 3475 3575

Lamb Indicator -3 4.35 4.38 4.39 Whole Milk Powder n/c 3638 3638 3863

Mid Micron Indicator +7 7.42 7.35 6.24 Cheddar n/c 4088 4088 4400

Wool Indicator Trends

450

500

550

600

650

700

750

Jan Mar May Jul Sep Nov

CXI FXI LI

Coarse Xbred Indictor in US$

300

350

400

450

500

550


Last Year

This Year

Coarse Xbred Indicator

400

500

600

700


Last Year

This Year

Dairy Prices Trends

4,000

5,000

6,000

7,000

Feb Apr Jun Aug Oct Dec

SMP WMPBut. Ched.

Whole Milk Powder Price in US$/T

3,000

3,500

4,000

4,500

5,000


Last Year

This Year

Whole Milk Powder Price (NZ$)

4,000

5,000

6,000


Last Year

This Year

Wool Indicator in US$

350

400

450

500

550

600

Jan Mar May Jul Sep Nov

CXI FXI LI

Dairy Prices in US$/Tonne

3,000

4,000

5,000

Feb Apr Jun Aug Oct Dec

SMP WMPBut. Ched.

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18 agribusiness

Several factors in nZ’s favourHISTORICALLY, THE commodities New Zealand exports tend to come under pressure during periods of global duress and uncertainty. Based on this, you’d currently expect New Zealand’s key commodity exports to be falling in price. Certainly, the past few months have seen commodity prices ease, but from extraordinary highs, and not as much as other markets.

ANZ’s Commod-ity Price Index shows a retreat in world price levels but it is still above previous peaks. Relative to history, world prices for most commod-ities New Zealand exports are still either at historical records, or not too far off.

There’s a number of factors we see working in favour of the New Zealand commodity prices staying close to his-torical highs.

A weaker global scene is a clear risk, but not yet a reality. Certainly we see Europe slipping into recession, but other pockets are trading okay. How-ever, it is clear the downside risks to the outlook are significant.

The main driver on the demand side has come from emerging market economies as they shift to becoming net importers of protein and other key foodstuffs in many instances. This support is expected to continue.

Worldwide cost of production is up on many fronts via land values, wages, increas-ing food safety and animal welfare stan-dards, oil and energy prices flowing into transportation and packaging, and the introduction of new

technology to increase efficiency and quality of products. These cost increases have been particularly prev-alent in emerging countries.

Weather is also a factor in some key areas for specific commodity produc-tion, such as drought in the southern US states affecting beef and drought in Argentina and Brazil impacting corn and soybeans.

An increase in the global growing area of grains has been on more mar-ginal land, with a more volatile climate;

there are good reasons why many areas have not been cropped prior to now. This increases the marginal cost of pro-duction and provides greater risk of fail-ure.

In many cases where there has been an increase in supply, this has been required to replenish inventory levels at historical lows and remaining so.

Government responses to high food inflation and the civil unrest it has

caused in parts of the globe have sup-ported a softening in prices rather than an implosion, which has been the his-torical experience.

Looking forward, we’ve pencilled in for soft commodity in-market prices to ease from the highs posted early in 2011, but to remain at elevated levels. The first half of this year will see fur-ther softening and is likely to present a number of challenges, particularly

for those industries more reliant on Europe as a market. The buffer for farm-gate returns will be New Zea-land’s floating currency if things become too messy.

Looking beyond cyclical turns, we are optimistic the long-term trend for commodities is up. How-ever, we would caution against exces-sive hype, with the trend likely to be slow moving. There will be con-sumer price resistance, speculators entering and exiting the market, unfriendly government interven-tion, other substitutes becoming viable and a supply-side response to strong prices.

Belarus is a recent example of supply side response, the former Soviet bloc nation emerging as a

major supplier of dairy products. Its share of world cheese exports is now 7% and its growing skim milk powder (SMP) exports stand at 80,000 tonnes – or one-third of US SMP exports.

Any or all of these things can upset the apple cart.• Con Williams is rural economist at ANZ. For more on ANZ’s Agricultural Price Preview email [email protected]

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southern Field days 19

More gear than you can poke a haggis atFARMING FIELD days don’t get much better than the Southern Field Days, the biennial show (Feb 15-17, Waimumu, near Gore) machinery suppliers clamour to get into.

Eastern Southland Young Farmers are the organising core.

Rural News reporters, long-time observers of this event, say the mix of southern hospitality, fired-up machinery (working demonstrations) and minimal ‘townie’ stuff is unbeatable. All the big suppliers are there, at least their dealers are, so the displays are convincing.

Organising chairman Mark Dillon reports a “struggle to fit everybody in,” but they’ll do it somehow. “This is a record, the number of sites we’ve sold and the amount of land we’ve used up.

“We still [had] a lot of people on the waiting list; we’ve managed to jam sites in here and there. We’re going to have to put an extra block in down the end where the tractor

neIl keATInG pull usually is and shift it down a bit.” The south’s buoyant rural economy explains it, Dillon says.

Among the ‘faithfuls’ is Gore tractor and machinery firm JJ Ltd, whose manager Geoff Sadlier says the firm has

attended every event since they started 32 years ago.

Sadlier has seen it develop from 60 sites on 2ha to 600 spread over 60ha.

“It’s gone on from – without being critical – a reasonably amateurish sort of

field day. We were asked to turn up and on the very first field day... I’m not sure if we even had set sites.

“We just took our

machinery out and parked it where we wanted and did demonstrations across the other side of the road.”

Now it’s an outstanding event.

“Remember they’re not actually professionals as such. Exhibitors seem to like it because there’s not too much bureaucracy involved, that’s the nice thing with Young Farmers running it rather than a professional identity.”

One special event loved by visitors is the tractor pull. Organiser Vaughan Coy, Tractor Pull NZ, says he expects a record number of entries – by which he means the

biggest tractor pull line-up New Zealand has ever seen.

And around the sites – new gear and not-so-new. The new includes:

• Robertson Engineering’s Strainrite Mk II Hot Post in which the foot peg is cleverly insulated from the live stanchion.

• Advanced Cow Barns’ latest (pictures thereof ), spearheading the company’s claim that cow housing now must be a ‘given’ in the cold south.

• RX Plastics’ DIY

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irrigation package for small farmers.

• Tracmap’s new “high visibility” internet-based ordering system for fertiliser and spray buying.

• Robertson Manu-

facturing’s option for its Comby feedout wagon, to virtually eliminate wastage.

• Lucas Mill’s portable sawmill for small operators.

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20 opinion

“lot fifty six, Garden manure, by sweeping, out of old Horse float!”

WHAT LESSONS can New Zealand Inc take from the whole sorry saga of the Crafar Farms?

Attention has focussed on the Overseas Investment Act, and whether organisations such as Pengxin should be allowed to buy farms here. It’s been suggested by some that those complain-ing now are only doing so because Pengxin is Chi-nese, and that’s probably true in a few cases, but there have long been rumblings about the steady leaching of land into foreign hands, be they Asian, American, African or European. The scale of the Crafar estate, 16 dairy farms totalling 8000ha, is another factor. Combined with the national-ity issue, it’s proved a lightning rod for a storm that’s been brewing for some time.

With the storm at its height this is not the time to debate reform of the Overseas Investment Act. However, it is a debate New Zealand should have. Our politicians, particularly those in power, will be reluctant to tackle such a hot potato, but they must. Food security is a critical issue and there’s a land grab going on globally. Africa is the main victim, because many of its nations have neither the wealth nor the political fortitude to prevent it; but New Zealand needs to make sure it’s not subject to the same corporate colonialism.

Yes, overseas investors can be very benefi-cial, bringing capital that local economies cannot match. But when push comes to shove, as it will in the not-too-distant future over food, farms owned by overseas corporates (their key stake-holders being customers, shareholders and in some cases governments) will supply their own needs first, and the nations where those farms are situated will have to pay a premium to buy the produce back – if they can afford it.

Such farms are a different proposition from those bought by rich foreigners who want to live here for six months of the year and maybe the Bahamas or Monte Carlo for the rest of the time, just as they are from those bought by immigrants coming here to farm themselves. There’s a spec-trum of overseas investment, and the question is, how and where do we draw the lines and imple-ment the controls, if at all? For a nation that’s nailed its colours so firmly to the free-trade mast it’s a curly question.

Overseas investment aside, there’s another angle to this Crafar saga which has largely been overlooked: the lending which led to the receiv-ership, and such a massive mortgagee sale. Just what sort of checks did the three main creditors – Westpac, Rabobank and PGG Wrightson – do before dishing out the dosh? Those seeking to apportion blame for such a large chunk of land ending up in Chinese hands would do better to focus here, than on the receiver, OIO, or Minis-ters Williamson and Coleman.

Curly questions post Crafar

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wake up ePA!My mates at Rural News tell me an Envi-ronmental Protection agency reminder that agricultural processors, fertiliser importers and various other farming related businesses, must register for ETs by Jan 31 arrived late afternoon, friday Jan 27. Effectively that gave such busi-nesses two days to react, assuming the reminder made saturday’s papers, and was spotted. Okay, so the EPa only picked up the job of ETs admin on Jan 1, but this kind of last minute management doesn’t augur well, espe-cially given the acronym littered complexity of the paperwork.

Milk new Zealand...am I the only cynical old dog out there to read a double meaning into the name of the Crafar farms buyer Milk New Zealand? I suspect the second part of the name of the Pengxin subsidiary has been lost in the transla-tion from the Chinese – it read “...for all it’s worth”.

easy money motiveso southland and Otago Police are targeting motorists speeding past school buses. Good on them, we shouldn’t do it, but your old mate can’t help wondering if it’s as much about revenue gathering as safety. as Rural Women NZ points out, the 20kmh limit past a stopped bus is “almost universally ignored”. The boys in blue down south are targeting the motoring equivalent of the sitting duck, and it’s a fair bet they’ll be using the bus and any other available cover as a mai mai.

new boss, same strategy?Last week’s news that NZX has appointed a new chief executive made your old mate muse as to how much coverage it would command in the agricul-tural press. Is it important to farming? Not really. Will it be well reported in main-stream media? undoubt-edly. so, the answer to the ag media coverage ques-tion should be “not much.” but half the farming papers are owned by NZX these days, so unless the syco-phants have changed their spots, expect to see at least a full page splash saying what great news it is for farming!

Ird txt 4 taxyour old mate isn’t a great fan of texts – the fiddly keypad’s a bit tricky with paws like mine. Incoming ones are fine though, just so long as I don’t have to reply. so last week’s txt reminder from IRD about some tax I had to pay wasn’t a problem, other than the amount. Could have done without that, but then I’d already posted the cheque so felt quite smug. Question is whether NZ Post gets it there in time. IRD maybe needs to txt a few more than four working days before deadline.


opinion 21Science funding impacts impartialityIN THE rural sector, many advisors and representa-tives are rewarded for the custom they bring in and the services/product they sell. Who then is the impar-tial advisor?

In New Zealand the answer is, it is difficult to tell. The Crown Research Institute is involved with land-based production research and gains less than half their income

from the government. In an effort to stay afloat, they have taken on more and more commercially funded projects. So have the universities for a simi-lar reason.

In an attempt to justify existence, research bodies have moved into activities designed to show stakehol-ders they are working with them. Money has been spent on surveys, field days

and conferences at the expense of actual research where results can be trans-lated to the farm and improve the bottom line – maximising the difference between production costs and value of output.

Early press releases about products which ‘could’ or ‘might’ make a difference means agricul-tural research is becoming

like medical research – everything could be a cure for cancer... or cause it... depending how much you

ingest and which week it is. Frequently the expense of the next stage means the research is left at ‘could’ and ‘might’ and sometimes classed as ‘fringe’ or ‘alter-native’.

Sufficient funding should be made available to ensure proof of concept is followed by proof of effi-cacy. It should not be left to the individual to bear

the expense of the testing.Farmers are coping

with an economic, clima-tic and ecological environ-ment which is increasingly unpredictable, within increasing restrictions on tools that can be used to reduce risk. New Zea-land needs a group of top farmers and top scien-tists sorting out research direction – a combina-

tion of common sense and practical understanding identifying where feasi-ble adjustments could be made within the bounda-ries of commercial reality for most farms. Then the government should fund it. Simple.• Jacqueline Rowarth is Professor of Pastoral Agriculture, Massey University

ag twitsRural News’ irreverent and hypothetical look at what’s happening in the farming world

Top Bleats view all

dcarterminofprimaryindustries: So if I force Fonterra to give more milk to other dairy processors – who don’t sell milk in New Zealand and send their products and profits offshore – surely it will drop domes-tic milk prices? #howaboutthatforlogic

henryfonterra@dcarterminofprima-ryindustries: Despite our free-milk-in-schools project and cutting local milk prices you are still screwing us with these new regulations. The sooner you become Speaker the better. #youbastard

lmagrianopencountry@henryfonterra: Henry, your howls of outrage over the proposed raw milk regulations sound about as hollow as Michael Fay’s claims about the evils of selling New Zealand assets to foreigners. #giveusabreak

mikefayfarmer: I’m disgusted my bid for the Crafar farms was turned down in favour of those evil Chinese buyers. Of course, it had nothing to do with the fact my price was $40m lower! #iwantacheapfarm

dshearerlabour: I recently visited a large, green space in the middle of the North Island. Apparently it’s called a farm. I met a nice man called Michael who wants to buy it, but the evil Chinese landlords are stopping him. #desperateforattention

winstonfirstandlast: I am not a racist, but watch out New Zealand as the yellow peril are now taking over all our farmland! #dogwhistlepolitics

johnkeypm: The decision to sell Crafar farms to Chinese interests was a decision made by the OIO and had nothing to do with the Government. #notmyfault

Is the Crafar Farms’ sale to Shanghai Pengxin Group good, bad or neutral for the New Zealand economy? ● Good● Bad● Neutral

Have your say at: www.ruralnews.co.nz

ONLINE POLL


22 opinion

Courts clear on trustee dutiesRECENT COURT deci-sions make it clear our courts are placing a far greater emphasis on trust-ees duties and obligations in relation to family trusts than was once the case.

Trustees hold the assets of a trust for the benefit of the beneficia-ries. Because of this they

owe a number of duties, and are accountable for their performance to the beneficiaries.

At the same time as the courts are bringing a more sceptical approach to family trusts, the New Zea-land Law Commission is undertaking an extensive review of the law of trusts

in New Zealand. Five dis-cussion papers have thus far been issued and can be accessed from the com-mission website. Many consider these discussion papers are a precursor to legislation the commis-sion will soon recommend to Parliament.

It is not possible to

deal with all the issues and insights raised by these papers, but here are some personal observa-tions and interpretations from reading the papers and discussions with other professionals.

The commission appears to be attracted to the US concept of legisla-

tion being able to provide a code, much the same as the Companies Act 1993 does in relation to com-panies.

Nobody has any real idea of how many trusts are out there as there is currently no requirement to register a trust any-where, unless it is a tax-payer and in that event it will be registered with the IRD. Many believe the commission will rec-ommend trusts become registered, the same way companies are registered.

The concept of a trust ombudsmen has been mooted as one means of providing an inexpensive way to deal with some dis-putes over trusts, so avoid-ing the cost of going to the High Court.

Differentiating between paid and non-paid trustees seems to find some favour.

It appears any legisla-tion will focus on trustees duties, rather than benefi-ciaries rights.

This is the same approach taken in the Companies Act 1993 whereby the focus is on the duties of directors of a company.

Clarifying beneficiaries’ rights to receive infor-mation and documenta-tion is a desired outcome. At present there is much uncertainty as to what beneficiaries are enti-tled to.

Knowledge of good trust practices and good administration of trusts is the key to avoid the courts having to intervene in trust affairs.

Although directors of limited liability compa-nies and trustees are very

different and play very different roles, they are nevertheless both fidu-ciaries. Accordingly, the question is why not treat them in the same way? A fiduciary relationship is where one person owes a duty of loyalty to another.

The above are simply a select few observations and the opinion of the writer. Anybody with an interest can visit www.lawcom.govt.nz to read the information them-selves.

As family businesses

play a major role in the New Zealand business landscape, so do family trusts play a major role in the ownership and succes-sion of those businesses. Accordingly, taking the time to understand the changes evolving in the New Zealand trust land-scape is not only impor-tant for advisors in this field, but also the owners of those businesses.

In the same way we have published a free report in both 2010 and 2011, we will be publishing our 2012 report in the first quarter of this year.

The focus of this report will be the changing land-scape for trusts in New Zealand and recommen-dations for prudent trust practices.

For a free copy of this report (when available), email [email protected]. • Owen Cooney is a partner at Tauranga-based law firm CooneyLeesMorgan.The above information is general only and cannot be relied upon as specific advice. Contact your advisor for specific advice before taking any action.

“Knowledge of good trust practices and good administration of trusts is the key to avoid the courts having to intervene.”

Check out our new websiteswww.ruralnews.co.nzwww.dairynews.co.nz

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management 23

The drill does make a differenceCAN A no-tillage drill affect crop yield? Five years of data from the Foundation for Arable Research (FAR) ‘Arable Cultivation Trial’ at Chert-sey, Canterbury, suggest ‘yes’ is the answer to that question.

This continuous trial near Ashburton began in 2003 to compare six differ-ent ways of growing arable crops in Canterbury using common rotations. The most recent five years of results were summarised by FAR’s Nick Poole. The full report is available from FAR, but since this article is about no-till-age, it is appropriate to draw attention to the two no-tilled, or as FAR puts it, “direct drilled” treat-ments at Chertsey since they represent two con-trasting ways (drills) of undertaking no-tillage.

Regardless of drill design, no-tillage, in gen-eral, is known to have a positive effect on soil health and the most recent five years of the Chert-sey trial confirm this. Ear-lier work by Landcare Research showed the soil health of a Manawatu silt loam double-cropped for 20 years using the no-till-age treatment that’s per-formed best at Chertsey, and without any pasture phase, was very similar to the same soil under a 20-year un-cropped pas-ture field alongside.

By contrast, a simi-lar soil in the district that had been continuously cropped by cultivation for the past 20 years had dete-riorated markedly.

People who have already made the change to full-time no-tillage soon find they can employ different rotations and

sowing dates than they might otherwise have chosen under a full till-age regime. The main dif-ference is that under no-tillage it is no longer necessary to periodically include a pasture and/or animal phase in the rota-tion in order to restore soil structure.

But in the Chert-sey trial, an understand-able decision was made to apply a common local rotation to all treatments and this included pastures and/or grazing animal phases. So it could be argued that the no-tillage results from Chertsey are, if anything, conservative.

Interestingly, exten-sive former research has also shown the two no-tillage treatments used at Chertsey represent (on the one hand) the “best” (and on the other hand) one of the “worst” of all no-tillage options avail-able. It is perhaps not sur-prising therefore that the “best” no-tillage treat-ment at Chertsey gave the highest average yield of all treatments and the “worst” no-tillage treat-

same crop-type, different drills: It’s not hard to conclude that drills can influence crop yield, says John Baker. ImaGes suPPlIeD BY BaKer No-tIllaGe.

ment was close to produc-ing the lowest yield of all treatments. There was, in fact, a 22% difference in yield between the two no-tillage treatments and a 30% difference between the “best” no-tillage treat-ment and the “worst’ of all treatments, which was “plough and press”. It’s a clear illustration that not only are crop-establish-ment practices not equal, but no-tillage drills are not equal either.

FAR had earlier grown a 16.8t/ha wheat crop at Geraldine using the same “best” no-tillage treat-ment as at Chertsey. Since

the highest yielding wheat crop in the Guinness Book of Records (also grown in New Zealand) was at that time a little over 15 t/ha, the 16.8 t/ha FAR no-tilled crop may well have been the highest wheat yield ever grown anywhere although it will never make the Guinness Book of Records because it was not grown as a commer-

cial crop.In the 1990s, seven

years of trials at Wash-ington State University, USA, showed that the same “best” New Zea-land no-tillage treatment that was used at Chertsey had out-yielded the “best” no-tillage treatment then available in the USA by an average of 13% – a result similar to the Chertsey result some 20 years later.

Paddock trials in Marl-borough in 2004 (involv-ing 11 different fields) produced an average 51% difference in the yields of brassica forage crops sown with the same “best” and “worst” no-tillage drills used at Chertsey. Another long-term trial in Austra-lia had earlier recorded 12 years of higher soy-bean yields (by an average of 30%) using the same “best” no-tillage treat-ment compared with con-ventional tillage in coastal NSW.

So, when people ask if no-tillage drill design can affect crop yield, even the most conservative answer would have to be ‘yes’. The reasons why have been extensively documented. More of a mystery is why every New Zealand farmer has not already made the change to superior no-till-age practices developed right here.

there was a 22% difference in yield between the two no-tillage treatments and a 30% difference between the “best” no-tillage treatment and the “worst’ of all treatments.

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TransitionNew solutions for transferring farm ownership

The traditional approach to transferring a farm to the next generation no longer applies.

From the work we’ve been doing with farming families throughout New Zealand, we’ve identified some key insights in implementing a generational transfer plan and developing successful family enterprises.

For those interested in understanding some of these keys to success, we have updated our Special Report for 2011. It is free and without obligation.

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24 management

Seeking a better succession

SIMON WALKER and his wife Louise are the fourth generation to farm Ross na Clonagh just out

of Pahiatua in the Tara-rua District. The name of the property dates back to Simon’s great grandfa-

ther who left Ireland aged 17 in the 1880s and soon acquired the property by ballot.

Today, Simon and Louise run 3000 Romney breeding ewes, 100 Angus cows and raise dairy graz-

ers. The place is as beau-tiful as the name Ross na Clonagh sounds, but the road to ownership of the

Transferring the family farm from one generation to the next can be a messy business. A lot has changed from the days when it was automatically gifted to the eldest son. Peter Burke relays one farmer’s story

farm has been far from smooth.

Walker went to Canter-bury University where he gained a BCom, majoring in marketing.

Once out of university he worked for two export-ing companies before deciding to take on the family farm at the age of 30. “In retrospect it was too late,” he says.

He spent many years trying to sort out a deal with his family and while he won’t talk about the details, it’s clear this pro-cess caused much grief and left him wondering whether it was all worth it after giving up “a damn good job” in town. It wasn’t until his father died 10 years ago that the rest of the family were finally forced to talk turkey.

“All this took place during 20 years of the most difficult economic times in the history of farming in New Zealand. We had to front up with a lot of money which added an almost impossible debt

to the farm.”Armed with this hind-

sight, he’s already starting the process of negotiating with his offspring to buy Ross na Clonagh.

“Hamish, who’s 23, is stock manager on the farm; Matt, 22, is work-ing on a nearby dairy farm. Both are living at home after doing time at Lin-coln and are keen to have a role in the farm in the future. So is our daughter Alice, 25, who’s a financial analyst working in Auck-land, but I believe she could also add value to the farm. They are all keen to talk about how we might resolve succession.”

There have been no ‘formal talks’ as such yet, but when the family are together they talk about it informally.

Meanwhile, Walker has talked to many others about succession planning and says from what he’s seen and read, there are no magic formulas.

“While I may not have all the answers yet, I believe my experience has taught me what not to do,” he stresses.

Talking often, openly and honestly about the process is best, he says. He’s aiming to be fair but concedes this almost cer-tainly means the outcome will not be equal in dollar terms.

“The best system I’ve seen so far, where there is limited financial invest-ment or resources out-side the farm business, is where the siblings have debt to the parents which secures the property and also secures a ‘needs-based’ income for the par-ents, rather than market

value rental or interest payments.

“All parties, most especially the aging par-ents, need to ‘give a bit’ to facilitate what has been decided as a combined family wish to avoid the sale of the farm.”

The idea is the next generation buys the farm from the parents for a family friendly price and picks up any debt to the bank plus a debt to the parents. The debt to the bank has to be funded out of farm income. The debt to the parents generates and justifies their income from the farm, and allows them some security over

romney ewes, an angus breeding herd, and dairy grazers are the main enterprises.

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management 25

simon walker (centre) and sons

Hamish (left) who works on the

farm and matt, who works on one

nearby.

the property.“In the end the debt

owed to the parents is shared so when they die the person farming the property gets a proportion gifted to them and may only have to pay the other two their proportions based on the price of the farm at the time the deal was done or market value, whichever is the lesser – not the value of the prop-erty when the last parent dies.”

Such a value is a total disincentive and means the person running the farm is always worried the work they have done and the value they have added to the property and busi-ness will, effectively, have to be paid for twice.

Walker says he’s talked to his sons and suggested to them that if they can work together on the farm it will be more suc-

cessful financially. He also accepts it is desir-able for the family to buy more land to make Ross na Clonagh more viable as more and more people expect something from the business.

He’s a believer in the old adage that the ideal time for a person to take on the farm cheque book is 24, and one of his sons is getting close to that age now. The desire to have a fifth generation run the farm is strong.

“It’s not my right to do this.... I’m essentially a caretaker.”

And he has no inten-tion of just selling up and going to sit on a beach to live off the cash he might make. He wants to give his children a chance to run the attractive prop-erty and to do it with less stress than he had to endure.

strategy

Orchard hygiene key with gold kiwifruitGROWERS OF Psa prone gold kiwifruit cultivar Hort 16A are being warned to keep orchard hygiene as high as pos-sible with a view to regrafting.

Kiwifruit Vine Health (KVH) general manager John Burke says while growers may try to get through 2012 with the cultivar, prompt removal of vines where infec-tion occurs will help protect root stocks.

“Growers need to cut off the heads of vines [with] sig-nificant infection quickly to contain the infection in the orchard but also to keep their stumps healthy.”

Trials with more resistant cultivars grafted onto infected stumps show they don’t do nearly as well as when grafted on to healthy stumps, he explains.

“If they’ve got the infec-tion in the foot stumps it makes it a lot harder to get back on track.”

It’s not yet clear how fast innoculum moves through the vine or how far ahead of visible symptoms.

Burke says KVH is not seeing a lot of new Psa infec-tions, but the disease is advancing in orchards already infected, particularly in 16A.

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26 animal health

Patience pays with uninterested pups

Young dogs might be 10-12 months before sheep work becomes their focus.

A WOMAN phoned the other day worried that a heading pup she had bought off me showed no interest in sheep.

We talked about the pup, its upbringing

and experiences and everything she had done to encourage it to ‘start’ on sheep. She appeared to have done nothing wrong, and the pup had been given several good

opportunities.I wasn’t in the slightest

bit concerned; the pup was only five months old. I told her to be patient, and get back to me in a couple of months if there was still a problem. Funnily enough she rang the next day – sheep were no longer invisible.

I’m often asked about this; people get anxious if a pup isn’t eyeing, or bark-ing noisily, at everything that moves by the time it is six months old. It is quite common for a pup to just want to be a pup, and be more interested in play and exploration, rather than chasing animals of other species.

And if you think about it, Mother Nature wants to protect her young ani-mals, be it in the wil-derness or on a farm. At that age a pup has no chance if faced with elk or cattle, so for their own preser-vation some don’t have the desire to chase larger animals.

Or maybe when a pup first chased something, such as a cat or chicken, it was growled at; or it may have had a fright at an early age by something big and intimidating.

A lot of pups are over-whelmed by noise; shout-ing, whistling, barking, mobs of sheep and cattle, and the tension of a work-ing situation.

Often the pup’s han-dler has unreasonable expectations or a gruff surly manner that is dis-couraging, so look at your-self first.

Consider the pup’s age, its upbringing, expe-riences and opportuni-ties (good and bad) and be prepared to wait a while.

Some of the best dogs have been late starters.

But how long do you wait? If you are not the problem and the pup has had a perfect upbringing with many golden oppor-tunities, when do you draw the line?

I would wait 10–12 months and in that time I will have tried every trick in the book, and some. (More about this next month). It is important to space each attempt as it avoids getting frustrated on your part and possibly taking it out on the unde-serving pup. There is no point trying everything you know when the pup just isn’t ready to start – remember, you can take a horse to water but you can’t make it drink.

Two or three times a month I’ll give pups a safe and inviting opportunity, in a non-work situation, in the sheepyards, on four to six hand-picked sheep that have been pre worked with an older dog. I will have removed any stroppy or flighty escapees; the

last thing I want is for a pup to get frightened or injured. If the pup shows no interest after 10 min-utes we calmly walk away and try again another day.

If you have tried all the tricks, kept calm, done nothing wrong and your pup still shows no inclina-tion whatsoever towards stock, I’d give it to some-one else to try for a couple of weeks. It is important to choose your person wisely; they need to be a calm and capable person with a dog.

Often a complete change of scenery and a totally different person is all it takes. • Anna Holland teaches people dog training. For more information www.annaholland.co.nz

next training daysTaihape february 19: Ph anna (06) 388 1318feilding february 26: Ph Donna (06) 328 9171


animal health 27

Taranaki salmonella spike mysteryVETERINARIANS IN Taranaki are perplexed by an upsurge in the number of cows contracting dis-ease salmonella in the past year. So far 16 cases have been reported in the region and this is the first time the disease has been this widespread in the Stratford area.

A senior vet at Taranaki Vet Services, Craig Has-sell told Rural News it’s the first time in 22 years he’s encountered such a big outbreak around Strat-ford.

“We’ve had the odd case and generally it has affected one or two ani-mals at the most and they have tended to get pretty sick and die. What we are now seeing is a high infec-tion rate, with not such a high mortality rate – although some farmers have lost in excess of 10 cows.”

Hassell says there’s a lot of speculation as to the

causes of the salmonella outbreak. A committee of local vets, MAF, dairy companies, the Veterinary Association and Massey University is gathering information. “The Massey University Epicentre has identified a number of risk fac-tors, and is hoping to extend the survey into the Waikato and Bay of Plenty regions.”

Unusually, it doesn’t appear to be spread-ing from farm to farm. “There seems to be some-thing triggering the dis-ease on a particular farm. Maybe carrier animals on that farm have had their immune systems compro-mised or something hap-pening in the gut of these cows and is triggering the disease. It seems to be farm specific.”

It’s important farmers

PeTer burke recognise infected cows as soon as possible, then iso-late the infected animals and call their vets. Once a widespread Salmonella problem has been iden-tified, the farmer should also tell their dairy com-pany. “Ideally they should contact their neighbours as well.”

Hassell says farmers

worried about their cows getting Salmonella can vaccinate them inexpensively. And hygiene must be watched because of the risk of the disease spreading to people or other animals.

“Washing hands and maintaining good hygiene in the shed is extremely important,” he says.

RAVENSDOWN HAS launched a moxidectin drench, Moximax, which has a seven day withholding period.

That compares with a 10 day withholding requirement for all other oral moxidectins, says the cooperative.

Moximax’s persistent activity allows 4-5 week drench intervals when targeting Barber’s pole worms and it’s effective against all other roundworm parasites.

Ravensdown also says it’s the only moxidectin formula-tion containing all five essential trace elements; selenium, cobalt, iodine, copper and zinc.

“This [product] significantly enhances the Ravens-down animal health range making it easier to order direct,” says Gavin Goble, vet at Ravensdown.

Barber’s Pole is a blood-sucking worm. Parasitised ani-mals, especially lambs, quickly develop anaemia, bottle jaw (swelling under the jaw), lethargy and in severe cases death. Rapid weight loss is common.

These symptoms can occur even before adult worms are mature enough to lay eggs, so may be seen before faecal egg counts indicate a problem.

Moderate to severe infections of ewes at or around mating, while not necessarily leading to deaths, hit repro-ductive performance and rapid increases in faecal egg count, climbing into the thousands, are possible.

7-day withholding with new drench

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28 animal health

new formulation for Fe controlRECENT COOL temper-atures may have kept a lid on the start to the facial eczema (FE) season, but that’s no reason to let down your guard, says

farm nutrition specialist Altum.

It has launched an all-in-one zinc product to prevent the painful, and often hidden, disease.

Zincmax+ has organic copper added to over-come the reduced copper absorption associated with dosing with zinc and consequent depletion of liver copper levels, plus a peppermint flavour to counter the palatability problems of straight zinc products.

Altum’s animal nutri-tion manager Jackie Avel-ing warns just a few cows showing signs of FE can mean a large proportion of the herd are affected sub-clinically.

“Not only can milk production in these cows be depressed by up to half, but slow wasting or sudden death may also occur in cows that have shown no prior symptoms when they are put under stress, often after calving,” she points out.

Reduced drinking with traditional zinc sulphate treatments also impacts production, and there’s the risk stock don’t get enough zinc to combat the FE, which is the whole

reason the zinc’s put in the water.

“Zinc treatment can also have a negative impact on young stock, impacting their copper reserves, which are a key requirement for healthy growth,” she says.

Zincmax+ is metered into the water system in the same way as other zinc products, except at 28g/cow/day rather than 25g/cow/day to allow for the added ingredients.

Late last month cool temperatures were keep-ing a lid on spore counts nationwide but Avel-ing says it is important farmers keep monitoring counts, and have a plan in place to start treatment early before spore counts become high.

Zincmax+ is part of Altum’s OptiMAX range of regionally specific animal nutrition prod-ucts designed to work in harmony with a complete nutrition programme by filling the micro-nutrient gaps.

faCIaL ECZEMa is the subject of a lengthy lead article in Dairy NZ’s latest Technical series publi-cation, covering risk prediction, treatments, zinc toxicity and copper interaction issues, and breeding for tolerance.

“The New Zealand sheep industry has success-fully implemented breeding programmes for fE tolerance, and this is also a heritable trait in cattle... considerable progress could be made to breed dairy cattle with fE tolerance if appropriate selec-tion procedures were developed,” it says.

Research into such breeding is being funded by Dairy NZ, and one breeding company is scoring bulls based on their daughters’ tolerance to natural exposure. However, a DNa marker approach would mean bulls carrying tolerance traits could be iden-tified, and used much sooner, if it were available, it points out.

a paper on zinc sulphate dosing of water concludes it does not provide full protection and other control measures should be considered when risk is high.

Dairy NZ echoes aveling’s warning about subclinical cases, saying only about 10% of affected animals show clinical signs.

Testing blood for gamma glutamyl transferase (GGT) levels helps identify subclinical disease as it correlates closely with liver damage.

In terms of risk, spore counts typically soar after a spell of four or more consecutive nights with grass temperatures holding above 12 degrees C and high humidity.

Breeding facial eczema tolerance

MS1189


animal health 29

Schmallenburg risk ‘under control’MAF SAYS it has considered the risks associated with a new ruminant viral disease sweeping Europe and consid-ers them “sufficiently managed.”

Schmallenburg virus was late last month confirmed on four UK sheep farms and the British Veterinary Asso-ciation is urging “heightened vigi-lance.”

The disease causes congenital deformities and nervous defects in lambs, goat kids and calves. Clinical signs in affected cattle include fever, milk drop and diarrhoea.

Veronica Herrera, MAF direc-tor response, told Rural News, that while MAF doesn’t test for Schmal-lenburg itself, it does test for similar viruses which show they are not pres-ent here, and consequently Schmal-lenburg isn’t thought to be present in New Zealand.

Even if it were inadvertently imported in embryos or semen, it’s likely what’s thought to be insect transmission from animal to animal wouldn’t occur here.

“MAF has assessed the risk associ-ated with semen and embryo imports and found the risks associated with semen are negligible and the risks associated with embryos are very low.

Animal product imports are also considered to be negligible risk.”

As it is, there have been no imports of sheep or goat embryos in recent years and MAF has contacted those who have imported bovine embryos in the past two years “to share infor-mation and ensure heightened vigi-lance.”

“Importers have advised MAF that they have not observed suspect disease in recipient cows or resulting progeny.”

There have been no imports from

Europe of live animals of susceptible species in recent years.

BVA president Carl Padgett says confirmation of Schmallenberg virus in sheep flocks in England is a reminder to vets and farmers across the UK to step up vigilance.

“We understand that in confirmed cases clinical signs occur in clusters and vets should ensure they know what to look for in both adult and perinatal ruminants.

“While the cases in the south east of England suggest the virus is vector-borne, other potential routes of trans-mission are still being considered.”

Meteorological modelling sug-gests that infection on the four farms occurred during summer/autumn 2011, with congenital defects now becoming visible at lambing time.

The risk of transmission to humans is believed to be very low but it has not been ruled out.

Andrew SwAllow

REaDERs CONCERNED by the recent story ‘Moves to reduce resis-tance risks’ (Rural News, January 24) highlighting moves to reduce anti-biotic use in the us and European meat producing sectors should not link concerns about growing antibacte-rial resistance to antibi-otics overseas to poultry industry practices in New Zealand.

Cephalosporins,

the class of antibiotics causing concern in the us and uK, are not used in the industry here and are not licensed by Maf, so the issue is not rele-vant.

In addition, the latest Maf study into antibiotic resistance in New Zealand (released June 2011) found antibiotic resistance in New Zealand among the lowest in the world.

In the New Zealand

poultry industry we are fortunate to be free of the three major avian diseases that plague our overseas counterparts and therefore use fewer antibiotics in general.

Over 99% of antibi-otics used in our industry are from a spectrum that is not used in human medicine and are used to treat flora infections in the gut of poultry.

Only a tiny percentage - about 0.03% - of poultry

antibiotics is from the same spectrum used in human medicine. They are only used when prescribed by vets and there is a withholding period to ensure birds are free of all traces of anti-biotics before they are processed for human consumption.Michael brooks executive director Poultry Industry Association of new Zealand Inc.

US and EU rESiStancE iSSUES not rElEvant hErELetter

the schmallenburg virus has now reached the uK, with infection con-firmed in four flocks.

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30 machinery & products

NEW FROM Robertson Engineering, Upper Hutt, comes a new version of the Strainrite Hot Post, in which the electrified shaft is cleverly insulated from the foot peg (see picture).

General manager Brian Collins says the new design utilises vast field test data gained from the Hot Post’s predecessor, resulting in a superior performance.

The shaft is made of spring steel,

Juice won’t leak to earth

galvanised. Ground holding is legendary and

installation easy.www.robeng.co.nz

Chinese utilities ‘sure to please’FARM UTILITIES new next month include CB Norwood’s CF Moto Z6, a 600cc, fuel-injected side-by-side and a UTV – a utility 4x4 machine with a tipping deck, powered by a 500cc engine.

These will be followed soon after by the CF Moto Z8 (an 800cc side-by-side) and the X8 (an 800cc agricultural ATV).

Established globally as a farm and powersports machine maker, Norwood says, CF Moto came to the New Zealand market in 2010.

Its scooters and ATVs have previously been sold here and in Australia bearing a different name. Now they’re all CF Moto.

The firm, based in Hangzhou, China, has made such prod-ucts for 20 years. It puts 25% of its 1300 workers to research and development. The brand enforces a zero defect policy. It makes 600,000 vehicles annually, selling them in Europe, North and South America, Australia and Africa, as well as in China.

CF Moto ATVs/UTV and side-by-sides come with auto-matic CVT (continuous variable transmission) and selectable 2WD/4WD modes with a low/high range and independent rear suspension.

The farm range of ATVs includes a base model 500cc (the X5) at $9500 incl. GST, the soon-to-arrive X8 (800cc power steer) at $14,999, the Rancher 500cc UTV at $13,999 and the new Z6 (600cc EFI) side-by-side at $14,999. All models carry a 1-year fac-tory warranty.

Two agricultural/recreational models are the CF Moto Z6 (600cc) and Z8 (800cc) with electric winch, tow hitch and alloy wheels as standard.Tel. 06 356 4920www.cfmoto.co.nz

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machinery & products 31

WAIKATO FARMER and contractor Gary Rogerson last year hired four Fendt tractors for a large civil engineer-ing job and their performance reinforced his confidence in the brand, AGCO reports.

Rogerson operates Rogerson Farms Ltd in partnership with his father, Graeme. Together they do dairy and drys-tock farming, breed and train horses, and a variety of con-tracting – earthworks, effluent ponds, drilling, spraying and transport.

Rogerson five years ago bought a Fendt 716, then last year leased four Fendts for a large stopbank project for Environment Waikato. The job was at Mercer and took five months, building up and realigning an old stopbank and reforming its camber to less steep.

The Fendts are two 820s, a 924 and an 818. He also ran three diggers and two bulldozers on the job.

The Fendts did well, he says. “With the Vario transmis-sion they are easy to operate and fuel efficient. We were spending $40,000 a month on diesel with all the machin-ery we used on that job; it would have been more but for the Fendts.”

To rebuild the stopbank they needed tractors with at least 160hp. They were used to pull trailers full of clay from a burrow pit, and had to travel up to 4km off-road on swampy land.

“We wanted that horsepower for the trailers we had. With tractors around 200hp it meant we had a good power-to-weight ratio,” Rogerson says. “The Fendts are brilliant. They did everything we wanted. We trained three new guys up, and they quickly got the gist of driving them. They really rated them.

“We also had two other tractors with gearboxes on the job but no one wanted to drive them. They say you will never go back to a gearbox once you’ve been on the Vario.”

Rogerson says the Vario is the single biggest feature of Fendt tractors.

“Being able to programme in the flow rates, engine revs and oil for the valves to operate the rams on the trailers is great. It makes it easy for the guys to drive. They’re a nice, quiet, comfortable tractor to drive and the cab suspension system works very well.”

His interest in Fendt developed after he met a German man whose father sold and serviced them.

“He always raved about them. I went to Europe in 1992 and looked around the factory. It opened my mind to what was out there. Even way back then Fendt was always ahead of the field. They’re an innovator and there are lots of little things that are better.”

His own Fendt 716 does a variety of jobs in the con-tracting operation: pulling a 14,000 L slurry tanker, two big dump trailers, and cultivation and seeding implements including an aerator, subsoiler and drill.

The tractor has had very few problems in the five years he’s owned it.Tel. 0272 708 [email protected].

Power-to-weight ratio and Vario transmission are two features of fendt tractors that impressed contractor Gary rogerson during his upgrade of a big stopbank for environment waikato.

‘no going back to gear boxes’

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billy-basic farm vehicle comeslots of extras can be added to the basic suzuki farmworker.

ANYONE WHO had an old Suzuki SJ410 or SJ413 – or even a Land Rover – will relate to this version of Suzuki’s offering to the New Zealand market. Built in India, the Farmworker is a ‘descendant’ of those early Suzuki’s that were

a cheaper go-anywhere 4WD much favoured years ago by Kiwi farmers.

The Farmworker comes in three body styles, the cheapest a canvas roofed wellside version (Versatile), a fiberglass roof model with wellside and a flat-deck version – the flat deck built here in

New Zealand. The model we had on

test, the wellside, came with accessories such as seat covers, heater, crate, towbar and bull bars. Lots more can be added, such as half doors and power steering, as they come billy basic and can be specced to what you require. The

first thing I would do is throw out the carpet on the floor and put in some decent rubber mats along with the underseal option.

I didn’t find the manual steering too heavy, and it gives better feedback in a

4WD situation. The heater has all the controls on the dash, but the actual heater is extra. On the model tested, the roof comes off by undoing eight bolts, leaving the roll bar, then the screen can be folded

down; this will appeal to the hunting types.

The billy basic model with the canvas roof and ordinary road tyres retails for $13,995 including the God Save Taihape tax. Compare that to a 400cc

quad, and for an older farmer it could be another option. Even the model we tested at $18,990 is only marginally dearer than a big quad, and for all intents and purposes, more useful. Also it has a

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from favoured stock

Chuck out the carpets; rubber matting would be better.

roof to keep you dry, and if required the radio and heater to keep you enter-tained and warm.

The fuel-injected 1298cc engine develops 80hp (60kW) and 103Nm torque at 4500rpm, but provides the Farmworker with adequate power and performance.

This reviewer found the gearing higher than he remembered in the vehi-cles of old, but then, is this because it is geared for road conditions in its country of origin? Even in first gear, low range in the transfer box it felt high-geared in steep terrain, but to give the machine its due, it was prepared to lug a bit, and I’m told they get better with a few clicks on. My test machine had only done 200 kilometres.

The flat-deck and well-side models come with the excellent Maxxus tyres, which provide sure con-tact with most surfaces, but a replacement set will set you back about $1200.

There are no fuel economy figures quoted, but the 40L fuel tank will provide plenty of hours of use. It can’t be any hungrier than a big quad.

I found lots to like about this machine that weighs less than a tonne. For the money, it beats a UTV and I’d expect

running costs to be less. The ability to tow 500kg as well as put 500kg on its deck is a bonus as well, and we all know that Kiwi farmers abide by the manufacturers recommendations when it comes to towing and loading.

Being cart sprung (leaf springs front and rear) may not give the best ride, but at least we know this system is durable, and our farm tracks would prob-ably mimic roads in India. I found the Farmworker a capable and stable offroader; for most people, it will take you where you wish. Suzuki offers a good two-year warranty.

Perhaps a little high-geared, but prepared to lug a bit.

Hauls more than an atV.

The main drawback is because it doesn’t have compliance it can’t be road registered, but for dedicated on-farm work, I’d take a look.

GOOD: durable and known running gear, no electronics to go wrong, cheaper running costs probably than

ATV or UTV.NOT SO GOOD: poor

steering lock, carpet needs replacing with rubber mat, high gearing.

VERDICT: a strong and capable farm machine that provides all-weather protection with genuine capability at hugely com-petitive pricing.

MS1262



Power in ashburtonSIMON JACKSON is appointed dealer principal of Power Farming’s new branch at Ashburton.

He was formerly national product manager at Landpower Group, respon-sible for a range of machinery.

Jackson, born and bred a Canterbury man, says he is “hugely optimistic about the long-term prospects for farming in the area, and keen to get out and about in the local farming community to show what we can offer.”

The branch is operating in new prem-ises at 233 Alford Forest Road.Tel. 03 307 7154

new standard in moisture testsTRADITIONAL MOIS-TURE measurement tech-niques for seeds, grains and forages are being called into question by the importer of a new state-of-the-art meter.

The problem with heat

lamp and balance sys-tems is they often drive off more than just moisture, while electronic capaci-tance meters are at best an assay dependent on cali-bration, explains Jeremy Talbot, of Talbot Agricul-

faR’s RICHaRD Chynoweth admits he’s impressed with the sinar meter but says like all tests – even ovens – it isn’t infallible.

“you’ve got to [correctly] set the parameters it stops at. It is good, and more difficult to get wrong, but it won’t necessarily give you the right answer unless it’s calibrated right.”

a standard moisture testing method agreed between all seed companies would help growers know what they’re aiming for, he suggests.

far comment

ture.He believes inaccurate

testing is costing growers and/or seed processors, thousands, if not tens of thousands of dollars, par-ticularly with grass seed.

“With a heat lamp test they try to burn the grass until there’s no more moisture, but they’re not just driving off the free moisture, they’re driv-ing off the volatile oils and moisture that should be held in the protein.

“Having the moisture right on the seed test gives a bigger payback than a lot of the chemical and fer-tiliser used.”

Tests that drive off oils and non-free moisture will give a higher-than-actual moisture reading, which could prompt the grower or processor to over-dry seed. In the worst case scenario, that could damage germination, ren-dering worthless what was supposed to be high-value seed. Equally, an under assessment of mois-ture content could lead to costly rejections and/or drying costs at the pro-cessors, or heating in the silo which in turn damages germination.

The meter Talbot’s marketing in New Zea-land, is the Sinar Max50 which uses a halogen light to heat grain. Automa-

tion prevents seed tem-perature rising to a point where anything other than free moisture would be driven off.

“You can’t burn or over dry the seed.”

It also means the oper-ator can put the sample in, then get on with some-thing else without worry-ing about loss of accuracy, results or fire risk should all the free moisture be removed before they return.

There’s no need to weigh or reweigh the sample before or after the drying process, remov-ing another area of human error, and readings are expressed as either mois-ture or drymatter percent-age, with no weight loss calculation required.

“This machine has been shown to meet the ISTA standard of 0.1% accuracy and tests in New Zealand (by FAR) have found it the most reli-able and repeatable. It can also test any crop, even forage.”

At $2800 + GST Talbot admits it’s not cheap but considering the value of the crops involved, he believes it’s justified. “It is a professional laboratory tool but as farmers that’s what we’re supposed to be – professionals.”Tel. 03 741 8187

Easier hay handlingHAY BALE ‘bundling’ (collecting, stacking, tying) is said to be easy with a new machine from Giltrap Agrizone.

The Arcusin B14 multipack stacker, made in Spain, collects 10, 12 or 14 conventional bales and ties them ready for collection. It can gather 500 bales an hour.

“It is fully automatic but can be operated manually from the cab or from the machine when it is stationary,” says product specialist, Greig Singer.

Tied bales can be wrapped or, if necessary, lifted by a Stolle Pro-H attached to a frontloader onto a truck.

Minimum power 95hp.Tel. 027 266 7897

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Ploughing the time-honoured wayA LIFETIME with horses sees Derrick Thornton changing and adapting things to reflect his age and the health of a 70 year old.

“I have recently imported a single furrow plough used by the Amish people for 100 years and it has a seat on it,” says Thornton.

Horse ploughing has traditionally been walk behind with the horses guided by the ploughman’s reins but Thornton has a serious left foot injury that prevents his walking behind a team during a 3.5 hour contest.

He has qualified and will compete in the horse ploughing section of the New Zealand Plough-ing Championships on April 14 and 15 at Cam-bridge. This section will be sponsored by Rural News Group.

Thornton left school in 1956 to help on the family farm at Waeranga, 50km

south of Auckland. With its heavy soils, in wet win-ters the tractor often bogged down during feed-ing out. He acquired two Clydesdales and a sledge, solving the problem, and used them for more farm jobs. So began a life-long love affair with the breed.

“At one stage we had a team of six horses that would tow a three-fur-row plough (900mm) that could really shift some soil.”

He started a farrier apprenticeship in 1957 and worked in the Te Rapa, Cambridge and Te Awamutu areas mainly with thoroughbreds. Still retaining his inter-est in Clydesdales, in 1990 he entered his first horse ploughing competi-tion and has now entered “about 2000” contests since. He has ploughed all around New Zealand as far south as Clinton and at the World Championships at Methven.

His highest placing at a New Zealand champion-

ship has been a third.He and his wife Mar-

garet (aka Jimmie), mar-ried 48 years, now have DT Clydesdales stud on 13ha on the slopes of Maun-gatautari mountain near Cambridge.

His two present plough horses are a full brother and sister that he has bred, broke in and trained: Howie, a six-year-old geld-ing, and Nell, a five-year-old filly.

Tractor ploughmen check the diesel and turn the key; prepar-ing a plough horse is more involved. First there are bridle and bit to which the reins are attached, then the collar is put on and the chains attached. Because he now has a plough with a pole for steering, Thorn-

TonY HoPkInSon

ton puts on a ‘bri-tchon’ which attaches to the pole and

acts as a brake so the fol-lowing implement does not run into the horses’

back feet. A ‘crupper’ fits under the horses’ tails, centring the harness and preventing it from slip-ping forward. Straps from the inside of each horse’s bridle to the top of the collar of the other

horse keep them walk-ing together, along with straps through the collars to attach each horse to the front of the pole.

Chains from the collar go to the ‘swingle tree’ (aka as ‘whipple tree’) and

attach to the plough or implement.

The furrow horse works with its four hooves in the furrow, the land horse’s hooves tred the unploughed ground. Furrow depth is 125 mm.

DerrICK tHorNtoN holds the millar family trophy, awarded to the top point scorer in the horse section at the reporoa qualifying event for the New Zealand Ploughing association Championships. It is awarded only at the reporoa event and presented by the millar family to honour the memory of their father roy who in 1951 settled there on a ballot farm. He was a keen ploughman. the wooden base is made from a totara log excavated on his farm and believed 2000 years old.

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WE LISTENED. ALL OUR GEAR IS DESIGNED TO GET THE JOB DONE WITH ACCURACY, SPEED, AND ONGOING RELIABILITY.

GIL 5944 390x265mm Product Ad.indd 1 15/2/11 12:59:26 PM

rural news #508 feb 7 2011

Documents

milk price fonterra

farmers scheme

farmers ian

vast majority of farmers

farmer meetings

raw milk regulations

fonterras milk price

major issue