taranaki farming lifestyles, october 2015

Normande breakthroughPage 6–7

Striving for self-sufficiency

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FARMING LifestylesTaranaki

2 OCTOBER 2015 TARANAKI FARMING LIFESTYLES

The Taranaki Farming Lifestyles is published with pride by NorthSouth Multi Media Ltd, a privately ownedNew Zealand company.

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Calves collected for fertility research

Hundreds of calves collected from all over the North Island in recent weeks will pave the way for a research programme aimed to lift fertility rates in the dairy industry.

Heifer calves from 619 farms in Taranaki, Manawatu, Waikato, Hawke’s Bay and Bay of Plenty have been collected to be reared and milked together as one herd. The ‘Animal Model’ research herd will comprise equal numbers of Holstein Friesian calves with very high and very low fertility genetics. The calves were carefully selected from contract matings last spring and purchased from farmers by DairyNZ.

Calves were collected within one to two weeks of birth to ensure they are all raised in controlled, identical conditions. The calves are being reared together to around 13 weeks of age on a Te Awamutu property. They will then be moved to a large grazing property further north.

DairyNZ aims to have at least 200 high fertility and 200 low fertility heifers calving in 2017. Each animal will be monitored and tests performed

throughout growth, puberty, and first and second lactations. The research team, led by DairyNZ, will be looking to understand more clearly what drives fertility.

DairyNZ senior scientist Susanne Meier said one of the key objectives of the Achieving Reproductive Targets programme is to discover any new traits that could be measured in heifers, and would be good predictors of their eventual fertility.

“If we have a better understanding of the genetic drivers of fertility in our cows, then we can be more targeted in our breeding selections, and achieve faster gain.”

This could contribute to increasing the heritability of the fertility breeding value (BV).

“There’s potentially a huge financial gain if we can improve reliability and breed more effectively for fertility,” she said.

DairyNZ senior scientist and project leader Chris Burke said this purpose-bred herd will also enable a thorough understanding of why some cows are easy to get back in-calf and why others are a real struggle. “We have a group of world experts in fertility champing at the bit to use this herd to find answers.”

Hundreds of heifer calves will be raised together for fertility research

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Solution reached for rural contracting sector

Following a deal struck between Rural Contractors NZ (RCNZ) and Immigration New Zealand, agricultural contractors nationwide will soon be able to bring in overseas workers much easier than in the past.

CNZ president Steve Levet said a solution has been reached to solve many of the problems that rural contractors currently experience every year and make it much easier to bring in overseas workers.

An estimated 900 temporary, overseas workers are required by rural contractors each year.

Mr Levet said it is often impossible for rural contractors to find skilled New Zealanders to carry out this seasonal work.

“Members who are registered with RCNZ will now be able to apply to bring in overseas workers under our umbrella, rather than go through all the hoops and hurdles they currently have to as individuals.”

He describes the new scheme as great news for the sector and believes it will streamline and simplify the whole process of bringing in overseas workers.

The new scheme will see RCNZ applying for an Approval in Principle (AIP) on behalf of all members of the national body and contractors. Contractors will then be able to apply online for a visa

Rural Contractors NZ (RCNZ) president Steve Levet

for the person being recruited without having to advertise, go to WINZ or any the other requirements currently causing so much difficulty.

“As RCNZ will hold the AIP, there are a number of responsibilities placed on us and it will be important that all those contractors who wish to use this scheme comply with all these conditions and requirements,” said Mr Levet.

A written contract between RCNZ and each member company participating in

the scheme will ensure each knows their responsibilities. It will also protect RCNZ and other member companies.

“If these conditions are not complied with, the AIP can be rescinded.”

“Those applying to the scheme will also have to fully comply with RCNZ’s Code of Ethics and our Code for Employing Overseas Staff,” said Mr Levet.

It is aimed to have the new scheme up and running by June 1 2016.

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STRIVING FOR SELF-SUFFICIENCYBY DENISE GUNN

Organic gardening and teaching horticulture has been a long-standing passion for Dee Turner.

Dee Turner has always been a keen gardener

Dee learnt to garden from a young age. Her mother was a keen gardener and passed her

knowledge onto Dee.“I had been brought up gardening

without the use of chemicals, when I got my first garden, it never crossed my mind to do anything different to my mum” said Dee.

Shortly after her move from the United Kingdom to New Zealand in 2003, Dee bought a 4ha bare block of land at the base of Mount Taranaki.

She put together a permaculture plan for the property, worked out the requirements to live self-sufficiently and off the grid, and set about achieving these goals.

“We sourced a lot of second-hand timber, windows and doors to build a small bach to live in, put a water turbine in the river for power, installed a water tank to catch roof water, and I put in my first vegetable garden within four weeks of moving on-site,” said Dee.

“It was good to have a base plan, but as with all plans, they tend to morph as you get new ideas and find solutions to what seemed like huge problems.”

Years of overstocking had taken its toll on the property and Dee immediately started working to improve this.

“Soil tests showed a lack of just about every single mineral it should have had and a pH of 5.5. I started by putting on the Biodynamic Preparation 500 to get the soil biology working again and left the pasture to fallow for a year to increase the grass seed stock and to reduce the amount of dock in the paddocks.”

Within three years, with additional applications of composts, liquid fertiliser, carbon and nitrogen materials, as well as a muriate of potash and natural phosphate rock, the soil pH had increased to 5.9 and showed the missing minerals were back in medium range quantities. “The worm count when I moved on site was about one

per spadeful, after six years it was 30 per spadeful.”

Dee gained a vast amount of knowledge from developing this property.

“I was a gardener but I learned a lot of farming skills as well and how to garden on a large scale.”

The property became certified organic through Organic Farm New Zealand.

Prior to her move to New Zealand, Dee trained and worked as a teacher.

After developing her large scale garden, Dee decided to pursue her interest in teaching horticulture. She gained further qualifications in organic horticulture, biodynamics and permaculture while continuing to grow and sell vegetables at the local farmer’s market.

“I became convinced that it was much better to teach people how to grow their own food rather than grow it for them.”Dee began teaching the Organic


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A woofer applying biodynamic preparation

Horticulture Level Three night class course for Agriculture New Zealand at the Western Institute of Technology in New Plymouth.

“The night classes run two nights a week now as demand is high, and this year we ran a day course as an experiment which went really well.

“The evening classes are theory sessions, and then one Saturday a month we have a practical session at a property in Taranaki — urban or rural depending on what subject we’re studying.”

Dee generally runs a modular permaculture design course one weekend a month for nine months of the year as well.

“Next year, the demand is for an urban permaculture course so I’ll be running

that over three weekends between February to April.”

Students on these courses learn how to design gardens to grow everything they need to feed their families.

“I also have a productive garden advice service where I go to people’s gardens for a couple of hours and give advice on what they can grow, where to grow it and what infrastructure needs putting in place dependent on the time they have available to garden.”

Giving talks for various organisations in the North Island, covering topics from community gardening to compost making, also keeps Dee busy sharing her knowledge.

Next year Dee takes over a new urban section that she plans to develop into a complete self-sufficient foodscape.


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“I was a dairy farmer originally and had a lifestyle change. I moved careers and became

an Ambreeds district sales manager. In 1989 they offered me the job to set up the international division and I brought the first embryos and semen out of the United States and then the United Kingdom into New Zealand.

“I started my own company, Genetic Enterprises Ltd in 1999 and we are now the biggest importers of semen and embryos in the country for cattle, horse, dog, and sheep — all livestock really.

“Simeon Gethen contacted me as he was travelling to France to find a new breed of cattle to help produce their Mahoe cheese. We put him in contact with Helene Dubarle who is the export manager for Montbeliarde cattle over there. He spent time with her and she introduced him to a Normande cattle

breeder as the milk from these cows is known for making good cheese. Once he found his choice of donor we organised the import of the embryos for him.

“We are the biggest importers of breeds and arranged the permits and port clearance. The family are the first in New Zealand to have pure embryos born — it is very exciting. We implanted the embryos into their stock and will implant the Montbeliarde embryos we imported for them this year.

“There are a lot of people looking for a way to get semen imported. We work very closely with the Ministry of Primary Industries and Port Entry. Our knowledge makes it easier for people to import and it takes a lot of the worry out of arranging things for our clients. Things can go very wrong with importing which can be very costly.

“I enjoy the job and helping people

Allen Donald from Genetic Enterprises Ltd has been an integral part in the success of the first full blooded Normande calf born in New Zealand with embryo’s he helped import from France.

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NORMANDE BREAKTHROUGH

Allen Donald started his company in 1999 and says he enjoys helping people accomplish their livestock goals


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achieve their goals and I like having the contacts all around the world. I have travelled extensively over the years.

“Simeon has done a great job, it is very exciting and the Normande breed definitely has milk qualities which produce specialist cheese.”

There is a lot of Japanese interest regarding the breed and the cheese due to the milk quality which seems to be excellent for boutique type cheese.

“We have a herd of 80 Friesian/Jersey cows and implanted the embryos into some of them. That gives a full blooded calf yet the mother is still in France. That makes it even more special,” said Simeon.

“We supply milk to our Mahoe cheese factory which is next door to the milking shed. The milk from these cows gives us 15-20 per cent extra cheese for the same amount of milk solids to other cows.

“In France they are using this breed to make Camembert cheese. The Normande is used for dairy as it has always presented a strong dual purpose quality and is known for its unsurpassed quality and tenderness of meat and it is known as one of the best meats and the stock are hardy.

“They live in an environment of long damp muddy winters and they breed from the Andes to the tropical coastlines of South America and to the Islands in Canada.

“It was a bit complicated to start with as we have never brought embryos into New Zealand before and using Allen was a huge help to us. He made the transition very easy.

“Our first calf was born in early September and there are three more calving in February. We like to have a variety of stock rather than the same as everyone else and we like to farm

Simeon’s aunt and uncle started the Mahoe Cheese factory with the extended family all being cow and cheese enthusiast

and they farm as organically and environmentally friendly as possible

GENETIC ENTERPRISES WORLD CLASS GENETICS NZ

www.geneticenterprises.co.nzAllen Donald M: 0274 787 173 E: [email protected]

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Simeon Gethen with the family’s first New Zealand born full blooded Normande calf, which is the result of his trip to France

in search of more productive stock to supply milk for their cheesemaking factory

as organically and as environmentally as possible. Our breeds so far include Guernsey, Brown Swiss, Ayrshire, Montbeliarde, Normande and Holstein. We are trialling a wide range of breeds to see which work best for cheese making.

“The Normande’s are really cool cows, they are spotty and look really nice. They have a really good personality and a good character.

“The breed also shows remarkable docility which makes handling the cows really easy.

“When the calf was born I couldn’t sit still for five minutes the first few days, it is such an exciting adventure. We are looking forward to the others being born — having the first full-blooded calf born in the country is something we are very proud of.”

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A new generation of professionalsby Andy Bryenton

It’s a job which many kids profess to desire — the ability to drive those huge machines which shape the soil and make the foundations for our homes and industries. But what does it take to get the ‘right stuff’ in this day and age to become a heavy machinery operator?

It’s a growing industry which requires a high level of skill. In the year to march 2015 the number of trained heavy excavator and Tracks, Wheels and Rollers certed drivers rose to an unprecedented 7,800 nationwide, with no sign of slackening growth.

Of course the massive Christchurch rebuild is part of this figure, but roading and the needs of rural New Zealand make up a huge part of this figure as well. That’s no surprise — increasingly, the farming sector requires big projects

to meet the needs of more intensive agriculture. That means bigger feed pads, dairy sheds, barns, storage facilities, roads and races. And the need for fresh water year round in a changing climate has seen a rise in the construction of dams, while regulations surrounding dairy effluent have required the expansion of ponds and waste systems. Young recruits coming up in the trade must initially earn their heavy vehicle licences, grades 2 to 5 depending on the vehicles they wish to command.

An additional Tracks, Wheels and Rollers certification is also required. That’s before facing the array of

hydraulic controls which allow a seasoned excavator operator to move his machine’s massive boom with surgical precision. To then go on to achieve the required Certificate in Civil Plant Operation level 3 (or the alternative cert to level 3 specialising in bulk earthmoving), those fresh out of high school must have a minimum NCEA english and maths level 2.

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Safety is paramountby Paul Campbell

The farm environment can be a hazardous one, health and safety considerations extend to all personnel involved in agricultural and pastoral activities this obviously includes contractors and subcontractors who play a major role on farms.

Farm owners’ and managers’ responsibilities extend to the health and safety of everyone who works on the farm — full time, part time, casual employees, contractors and their employees, subcontractors and consultants.

Worksafe NZ has laid down guidelines for both principal and contractor.

‘Contractors and subcontractors have the same duty of care to their employees as any other employer. Contractors need to know what the principal’s (farmers) health and safety procedures are so they can assess their employees’ safety on site.

‘Farm owners and managers must work with contractors to make sure they share a common understanding of the hazards that workers face and how the site will be made safe.

Rural Contractors NZ president, Steve Levet says such things as forecast drought and the lower forecast milk price could see some farmers under huge pressure. “However, there are things on farm that have to be done — no matter what — such as supplementary feed and crop harvesting.

“Contractors are professionals and are especially set up to help out when these jobs need to be done on the farm.” Rural Contractors is the only

national association and the leading advocate for rural contractors in the country and while accrediting members to provide assurance to farmers of the qualifications and reliability of its members, the organisation also monitors central and local government policies, plans and proposals on behalf of its membership.

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the fact that the association supports and promotes training and education in the industry.

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Working with natureby John K Morris CEO of Agrissentials

A study of 50 year old United States Department of Agriculture data has disclosed that minerals in 43 different vegetables and fruits, compared to those that were eaten in 1999, found signi� cant decreases in protein, calcium, phosphorus, iron, ribo� avin (vitamin B2) and vitamin C.

According to Scienti� c American, subsequent studies have found a Kushi Institute analysis from 1975 to 1997 showing that average calcium levels in 12 varieties of fresh vegetables dropped 27%; vitamin A 21%, iron 37% and vitamin C 30%. A British study covering 1930 to 1980 found that the average

calcium content of 20 vegetables had declined by 19%, with 14% less potassium and 22% less iron. Yet another study concluded that “one would have to eat eight oranges today, to derive the same amount of vitamin A as our grandparents would have derived from just one orange”.

In 1992 at the Rio Earth Summit it was stated that there is deep concern over continuing major declines in the mineral values in farm and top soils throughout the world, showing mineral levels in the world’s soil falling by 85% in the USA, 76% in Asia and 72% in Europe. Such is the level of annual soil depletion that British farm soils have only 100 harvests left in them. Added to this, not only are the minerals in our soils declining, but toxic additives to the soil are creating unwanted side-effects (Russell, James. 2015, August 31. What Lies Beneath? Does mineral de� cient soil grow nutrient-poor food? Element. p10).

According to Dr Morgan Wiliam’s report to the government in 2004, NZ loses between 200 — 300 million tonnes of topsoil every year, to the ocean. However if you are using Agrissentials best on earth fertilisers the live microbial soil and deep root system will keep your topsoil on the farm. Agrissentials was formed in 1995 to manufacture and

market BioGro certi� ed, multi-mineral, microbial rich fertilisers; remineralising soils and building humus (carbon) in the soil; to rebuild and regenerate topsoil; thus ensuring sustainable farming and an eco-friendly environment.

Agrissentials have forged the way to accommodate the consumer call for safe, certi� ed, nutritiously dense food since 1992 and this call for healthy food is increasing in demand every day. This is the market that New Zealand should be targeting; top quality produce for top quality returns.

While we continue in the commodity markets we will always be struggling to keep ourselves above the breadline. Chemical production, chemical sprays, herbicides, drenches, antibiotics and toxic rescue remedies will only hold us back from lucrative markets.

We desperately need to change our course back onto the natural track, working with Mother Nature rather than against her.

With all the money spent on trying to eradicate pest and disease the only thing that has happened is that pest and disease have become immune to the toxic sprays — what does that tell you? Perhaps pest and disease are part and parcel of the ecosystem and part of Mother Nature’s

plan to keep the system operating. If a plant becomes sick or out of balance, pest and disease will take it out, so that it doesn’t propagate on and weaken the species.

Here, at Agrissentials we have developed a new product called ET 250 which is designed to repel pest and disease. If pest and disease are there for a purpose there’s no point in annihilating them. Just repel them from your property! The ultimate move is to build up the mineral content in your plant, pasture or animals, ensuring a good strong immune system which will naturally protect life, without the need to spray or drench.

Agrissentials specialise in multi-mineral microbial rich fertilisers for better health and vitality, however, if you are having trouble with pest and disease talk to us about our ET 250 repellent. It will rescue the situation until immunity sets in.

Go natural, start a new relationship with your production unit today and reap the bene� ts from working in harmony with nature. Freephone 0800 THE KEY that’s 0800 843 539 today for a FREE INFO PACK or you can contact your friendly representative Adrian Rowe on 021 873 304 to � nd out about the massive sale we have on all fertilisers this month that can make your farm more successful.

ADVERTOR IA L

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Selenium 1mgSelenium 5mg

A liquid form of selenium that issuitable to be drenched to sheep, cattleand horses for the prevention andtreatment of selenium responsive conditions.

Selenium DrenchSelenium Drench

Dose every 3 -4 weeks unless directed otherwise

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Use by oral route only. Dosage is based on supplying 0.1mg selenium per kg of liveweight (1ml selenium drench per 50kg liveweight).

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1 - 1.5 mls2 mls5 mls6 mls

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Selenium 5mg / ml as Sodium Selenate

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What’s causing lameness?Last month I wrote an article on white line disease, the most common hoof problem that we have with dairy cows, and I mentioned that the commonly believed theories are difficult to support and that there has to be an underlying issue.

If stones and pushing were as detrimental to the hooves as what we are led to believe then we wouldn’t be able to farm cows, and deer and mountain goats would have been extinct a long time ago. The underlying issue that we face, with probably 80-90% of our lame cows, is laminitis. Laminitis is by far the biggest cause of lameness and in dairy cows most of the damage by laminitis is seen on the walking surface of the claws, the sole and white line region.

The next biggest cause of lameness is nowhere near as great as laminitis. Not yet at least, even though we may potentially get one if we don’t keep Digital Dermatitis under control. DD is potentially going to be a major problem for you if you don’t manage it well and that should start now.

I will address that more in a future article, but let’s focus on this white line issue first. Laminitis is a multi-factorial disease that basically results in unhealthy live tissue in the hoof — the predominant causes being diet and stress. If the live tissue becomes unhealthy in both claws then the claw that is bearing the greatest share of the weight will struggle more than the claw that doesn’t bear as much weight. For

example, it’s the same as if two people walk along the road — one carrying a 30kg backpack and the other carrying a 10kg backpack. After a 40km walk the person with the 30kg backpack will have to work harder than the one with the 10kg backpack. These two people may be able to handle their individual load for that distance if they have trained for it but when they both come down with the ‘flu’ the difference in weight will be more evident. This explains why we see more lameness in the outer claw than what we see in the inner claw. You will find that the outer claw is usually bigger than the inner claw, and therefore bearing more weight than the inner claw.

Even if the claws were the same height and size the outer claw would still get more fluctuation in weight than the inner claw due to the swaying of the body from left to right to left to right as the cow is walking. So, if the outer claw is becoming bigger than the inner claw it will become more vulnerable as it will be overloaded with every step the cow takes, and even when the cows are standing still in the yard. So, what can you do to minimise lameness?

Well, the answer to that question is to minimise the effect of the factors

contributing to laminitis — namely stress and diet.

If a cow has no laminitis I am convinced you can push that cow as hard as you like on a really rough track and it won’t cause any issue for her. Unfortunately, there are very few cows in New Zealand that do not have laminitis to some degree. Treatment for laminitis is primarily through hoof trimming. When you get a professional hoof trimmer in to do some preventative trimming for you, he or she will not be able to stop the laminitis but the trimmer should be able to trim the claw in such a way that the effects of laminitis are kept to a minimum, and therefore the productivity of the cow is kept high.

These issues are discussed in greater detail on our hoof trimming workshops, so call us if you would like to register on one near you.

Hoof Printwith Fred Hoekstra HOOF TRIMMING SERVICES, EQUIPMENT & TRAINING

Ph 06 761 7265 – 23 Tasman Street, Opunake

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A lot of people in our Recharge ConditioningProgram are getting 8 to 10 years out of their batteries. Just dose them when you buy them, treat them every two years and give them an

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Farmer amazed at battery LifeADVERTOR IA L

Lead acid batteries usually die prematurely from sulphation build-up on internal lead plates.

According to Gerard Anselmi of RECHARGE Battery Revitalizer and Conditioner, sulphation is very easy to treat and prevent premature battery failure with their simple Recharge Battery Conditioning Program.

“We have been saying for years that farmers are getting eight to ten years battery life using our battery conditioning program. These days we meet people using our RECHARGE Battery Conditioning Program with 12 and 14-year-old batteries often still going,” says Gerard.

“Last year we had three farmers with 17-year-old batteries still going strong. The last one was a Canterbury farmer at the Christchurch A and P show — he was very pleased with the results.

“After 17 years on the market in New Zealand and 11 years in Australia I would not be surprised if we bettered that � gure given time.”

A RECHARGE treatment will dissolve the lead sulphate build-up turning those sulphur ions back into sulphuric acid electrolyte holding electrons.

“We are chemically reversing the sulphation build-up process, one chemical reaction to counter another,” says Gerard.

“Once treated, a battery is essentially running at full capacity, provided the lead plates are still in good condition and prevention is the key.

“Treat them early, repeat every two to three years and keep them charged. Yes you can treat sealed batteries simply by drilling into each cell treating and resealing with silicone, sika-� ex or a plastic bung. Recharge

is also great for deep cycle batteries like forklifts, golf carts, scissor hoists and lighting system batteries.” Recharge is available from Farmlands and Auto-One stores. Gerard

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Little � recracker a lifestyle block heroby Andy Bryenton

Mahindra’s range of big, powerful tractors are really making an impression in New Zealand, offering toughness that’s built to tackle the challenging demands of the Indian subcontinent alongside big value-for-money features.

While this is great for farmers and contractors — who can rest assured that after a punishing tour of duty in India, reliability issues are well and truly shaken down — Mahindra are also famous for their smaller tractors too. Coming from a country where many farms are isolated family smallholdings, this has been a key market for the world’s biggest diesel engine manufacturer, and it’s opened a surprising niche here in New Zealand too. Lifestyle block owners have, until now, been forced to make a tough call. Buy a ‘lawn tractor’ for slashing and mowing, adding on a sprayer — or save those pennies for a second hand full sized machine that may be too large to be practical on small acreage.

Then there is the need to fulfill a huge range of little tasks such as fencing and ditch digging, often meaning a call to the local contractors. Now, Mahindra have unleashed their tiny but mighty eMax series for just this niche. These small tractors are a veritable rolling swiss army knife, able to pack attachments usually only found on their bigger rivals.

The eMax 25 is a perfect example. Packing a frugal 3 cylinder diesel, this machine has more than enough get up and go to handle rural chores. Equipped

with a scoop bucket up front, it excels at feeding stock, shifting overburden or shoveling gravel and dirt. But it’s the optional attachments which make the eMax so versatile, such as JCB style backhoe for digging, a 60 inch mower deck to tackle big lifestyle block lawns, and a post hole borer to make fencing and construction a breeze. Add to the list the ability to carry, tow, or even mount a rotary tiller, and this agile little working platform starts to quickly pay for itself. With prices starting at under $20k, it’s also a value for money investment, replacing a host of other tools including your ride-on, auger drill

and mini excavator. For the growing number of lifestyle block owners who want the proverbial ‘good life’ on a sustainable block of land, but who don’t want to buy a whole shed full of separate machines to achieve their dream, it’s just what the doctor ordered and with a tiny turning circle, light weight and grippy, wide tyres, the eMax can go where large tractors may find the confines a bit too tight as well. Not only a good idea for small block owners, then, but also a perfect second machine for orchardists and landscapers who must work around important existing features.

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L I V E S T O C K

Questions for Fonterraby Ian Walker

One of the advantages of a few grey hairs and a long involvement in the dairy industry is a reasonable memory of contemporary history.

From the days of the NZ Dairy Board and nearly thirty dairy companies in the early 1980s to today with a dominant processing and marketing company there have been many promises or predictions made that have not been, or have yet to be, delivered

Being large and dominant can provide opportunities of scale and more efficient decision-making. However, the converse is also true. Companies the size of Fonterra risk diseconomies of scale through poor lines of internal communication and a weak command and control of various business units within the corporate entity. The handling of the recent food safety issues, inflated costs of labour and other overheads, a serious drive for greater milk supply, investment of capital at a rate that some commentators have considered

reckless, and the company’s inability to understand or accurately predict the dynamics of the international dairy trade are all examples that lead to the conclusion we suffer a weakness in governance.

The days of blindly supporting our company because that’s what we do in the spirit of the co-operative has long since past. All suppliers have a serious investment in Fonterra and we need to focus our brains rather than our hearts when it comes to who governs. A board of directors has two main responsibilities. One is to understand and manage risk and the other to add value to the company on behalf of its shareholders.

The Board cannot simply excuse the current low payout and poor company performance as the vagaries of commodity cycle and geo-political events. This has always been the most significant risk to the business and any responsible Board should

have addressed and had a strategy to mitigate this potential threat. Clearly they failed. Those currently sitting on the Board of Fonterra are all successful people in their own right. However, ex-shareholders council members, bankers, accountants, and agricultural academics dominate the Board rather than people with successful experience in large-scale manufacturing and international marketing.

This highlights a weakness that has likely resulted in a serious lack of understanding of business risk and an over reliance on a senior management group that is not well directed.

It is common knowledge that Fonterra has rapidly grown its workforce and overheads including paying well above the market rate for many employees. Why is this? How is this adding value to the shareholders, some of who are now having to ask their bank’s permission to buy weekly groceries?

Market forecasting in Fonterra is deplorable. In recent years we have been continually advised that the world needs increasing amounts of dairy products and we can expect decent returns for the foreseeable future. Shareholders made investment decisions on the advice being given by their company. Clearly Fonterra can’t see very far! Questions need to be asked and answered. The geopolitical events of the last 18 months cannot be used as an excuse.

The auction system is a cheap way of selling commodities. It is not a good

method to build customer relationships or markets.

We are actually allowing the seller to determine the market price rather than controlling it ourselves. If we are to believe that the ‘Clean Green’ and ‘Safe NZ’ stories add value, and we have a strategy of value add, why are we commoditising what we produce through an auction system?

While many farmers will stubbornly stay loyal with the company because historically that is what they do I believe this loyalty is potentially being abused. If Fonterra were a public company the Board and senior management would be under greater accountability.

On July 26 a number of pertinent questions were asked of the new Shareholder Council Chairman Duncan Coull. On August 5 a reply was received that he needed time to give due consideration to the questions. Nearly two months later as yet no reply has been received.

I also sent an email to John Wilson who reiterated he and the Board still believed their strategy was correct and we simply need to work together and basically keep it in the family. These responses, or lack of them, hardly build confidence that we have leaders that are in control.

Fonterra is not a family it’s a business, and we all have a serious shareholding investment. This should be the core consideration when we all vote in October.

1999

2000

2001

2002

2003

2204

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

.40

.35

.30

.25

.20

.15

.10

Building FE Tolerance

Dose (mg/kg)

Wai 152/11 TR

Wai 246/11 TW

Wai 51/09 TR

Wai 364/06 T

Wai 152/09 T

Wai 112/08 T

13/5

7/35/2

Elite Flock Sire - purchased 2014

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27th Annual Ram SaleAuction | 19 November 2015 | 12pmOn farm at Tatu, OhuraTrevor Johnson 0800 390 174 / [email protected] Spence 07 893 8844

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Stock Iodine 10%Stock Iodine 2.5%

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Welcoming TPP conclusion

“We’re confident that New Zealand’s negotiators have secured the best possible deal for Kiwi sheep and beef farmers,” says BLNZ Chairman James Parsons.

“The TPP will have a significant impact on the competitiveness of our exports in TPP markets.”

The sheep and beef sector’s exports to TPP countries were worth more than $2.4 billion in 2014, nearly one-third of the sector’s total exports. That trade incurred about $94 million in tariffs last year.

“New Zealand doesn’t currently have Free Trade Agreements (FTA) with Japan, the US, Canada, Mexico or Peru.

“This deal is particularly important for us in relation to those markets, some of which currently charge very high tariffs on our exports but are highly valuable to the sector,” said MIA Chairman Bill Falconer.

“The TPP will also open the door to addressing some complex and costly non-tariff barriers.”

New Zealand’s FTAs saved $161 million in tariffs on the sheep and beef sector’s global exports last year, and

Beef and Lamb New Zealand (BLNZ) and the Meat Industry Association (MIA) are delighted by the successful conclusion of the Trans-Pacific Partnership (TPP) negotiations, as announced by Trade Minister Tim Groser and his TPP counterparts on October 6 in Atlanta.

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Taranaki Rural Marketplace

the conclusion of the TPP means that number will continue to grow.

BLNZ and MIA work together to improve access for sheep and beef products to overseas markets, including by providing in-depth analysis to support the government’s trade negotiation efforts.

The full details of the TPP, including the specific tariff cuts that will take place in the various markets, are expected to be released by the government soon.


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taranaki farming lifestyles, october 2015

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