COMMENT with FRAN O’SULLIVANOct 30, 2014 · Oct10 Jul11 Apr12 Jan13 Oct13 Jul14 $ /tonne $ / kgM...

THURSDAY, OCTOBER 30, 2014

PLUS: Radio personality DOMINIC GEORGE

COMMENTFRAN O’SULLIVAN

with

2 Te Awamutu Courier Thursday, October 30, 2014

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Firedupoverchallengetothesmoko

Dominic George hostsFarming First,5am-6am weekdayson Radio Sport.

COMMENT

withDOMINICGEORGE

Rural radio personalityDominicGeorge vents his viewshere every Thursday

Workers face fallinginto anabyss of despairwithno time target

TEA BREAKS: Cangive you the chance to freshenup.

I’MMOREmotivated than evernow to form a Farming Showtrade union. Themain reason isto annoy JamieMackay.

Despite theman’s insistence that I’ma left-leaning trade unionist fromwayback, I’ve never been part of a uniondespite having the chance to do so onnumerous occasions. But the plannedchanges to New Zealand’semployment laws have prompted a lotof discussion around this topic and itwould painMackay so deeply that Ialmost can’t resist the opportunity.I tell you, if there was ever a right

donnybrook (I’mwatchingMadMenat themoment) brewing, it’s this. Atthe Farming Show, it’s certainly anoppressive regime, more for the factthat I have to workwithMackay thanfor a lack of toilet breaks. But I guessthis law doesn’t really apply to anoffice setting somuch as a factorysetting, for argument’s sake.Proponents of the law and those

who support it because John tellsthem to, argue it simply givesflexibility to the employer. Opponentssay it will remove guaranteed restandmeal breaks and undermine hard-won employment conditions.I’ve worked inmenial, clock-

watching jobs that suck the life andsoul out of you, hence the reason Idon’t do that anymore. One of thethings employers don’t tend tounderstand is that the workforcethey’ve assembled generally workfrom break to break until it’s time toleave. Take the break away and theworker will suddenly start free-fallinginto an abyss of despair as they haveno temporal target to reach. Theywillbecome pale imitations of their formerselves and youwill gradually end upgetting nothing out of them at all.People have an inherent desire to beincentivised and smoko is themostbasic and accepted incentive there is.Do you thinkwe should change theflag?I know formost workplaces things

will stay the same and, in fact, somenegotiation would be welcomed by theemployee. But as with the 90-day law,there will be a skulduggerous elementwhowill use it for the sheer pleasureit brings them and because they can.Trust me, I’ve worked for this type

of bastard before and they are notpleasant people. One particularcurmudgeon actually compiled alitany of minor offences that he pulledout when the time came to ask for areference. Granted, there was a lot ofcards and cricket played and theaverage break probably went on for alittle longer than stipulated, but thework always got done andmybackyard average crept up to a veryrespectable number.I once worked at a timbermill with

wonderful chaps whowent by namessuch as “Tussock” and “Hogget”. It

wasn’t uncommon for a few fists to flyduring smoko or lunch, but that was agood thing; entertaining for the rest ofus and a goodway for the lads to letoff a bit of steam. Trust me, you didn’twant that tension and anger tosimmer away and end up explodingaround some pretty savagemachinery.The point is we need a new flag . . .

no, wait— Imean regular breaks area good thing. New research shows upto a quarter of dairy farmworkers inthis country are already burned out

by stress, even during quietperiods. Let’s not give theopportunity for more things to betaken away, eh?There’s somewonderful irony in

this story as well. LabourMinisterMichaelWoodhouse is from awell-known South Dunedin working-class Catholic family. In fact, I grewup in the same house he did. I’msure his predecessors are veryproud of his efforts . . . but you can’thelp thinking . . .It’s also ironic that the law is

being brought in around Labour Day,something that’s been a feature in thiscountry since 1890.So I shall valiantly carry on. I’ve

found out in order to pissMackay off,form a Farming Show trade union,you need to be a registered companyfirst . . . all I need is a name.

Thursday, October 30, 2014 Te Awamutu Courier 3

Fran O’Sullivan is abusiness columnist forthe NZ Herald andAlexander Speirs(right) is a businessjournalist for HeraldBusiness Reports

AllbetscouldbeoffforTPPTalksnot deliveringgreat deal of hope forNewZealandagriculture

OPINION

withFRANO’SULLIVAN

Businesswriters FranO’SullivanandAlexanderSpeirs call the shots here every Thursday

THEMARKETACCESSFROMADEALLIKE THISWILLBROADENANDDEEPEN

TRADERELATIONSHIPS.

STICKING POINT: IsTimGroser setting thescene for a less thansuccessful outcome intrade talks?

TRADEMinister TimGroser is back fromSydney after theconclusion of another

round of Trans-PacificPartnership negotiations.While themost recent talks

predictably failed to produce anysemblance of a final agreement—Groser did returnwith a newand public insight— and itwasn’t promising for those in thebusiness of agriculture.While Groser called the talks

the “most significant ministerialmeeting I have attended in thepast three years”, the rhetoric isfar from positive. It could be thefirst signs that the groundworkis being laid to cushion the fall ofa less than optimal result after alengthy and publicly divisivecampaign.Concerns continue to escalate

that private negotiationsbetween the United States andJapanwill bring about a long-awaited conclusion to the talks,but produce a deal that couldcompromise New Zealand’smarket access for dairyproducts.On the face of it that could be

enough for New Zealand tobaulk at the deal on offer andwalk away from any finalagreement.“Wewon't be shut out of any

access that's there,” said Groser.“The question is whether it's abig enough deal for us tomakean overall balanced assessment,to say ‘yes, that's good enoughlet's move ahead'."But the bottom line for New

Zealandwill be that any dealthat fails to provide hugelyimprovedmarket access andtariff reduction for agriculturalproducts (particularly withhopes for phaseouts to zerotariffs over time)misses the goldstandardmark that Groser andhis predecessor, Labour's PhilGoff, set years ago.Japanwas a late entrant to

the talks last year, but has sincebecome a focal point for USnegotiators, who could struggleto gain the necessary TradePromotion Authority fromCongress in the absence of arobust deal with that nation.That’s where the potential

trouble lies for New Zealand.The Japanese have

traditionally been extremelyprotective of their agricultureindustry, imposing high tariffsandmaintaining significantbarriers to entry for exports.The TPPwas never intended

to be a tit-for-tat deal based onindividual trade-offs, but rathera comprehensive agreement tolay the framework for amoreeconomically integrated Asia-Pacific throughout the 21stcentury.The length and depth of the

negotiations to date absolutelyreflect that, but it appears asthough the final framesmay bebeing brought to a rushedconclusion.Kimberley Crewther,

executive director of the DairyCompanies Association of NewZealand, said that in light ofrecent developments, as an

organisation “it’s fair to sayweare apprehensive yet remainhopeful.“Japan have signalled that

dairy is a sensitive item for themin the negotiations but, at thesame time, they did sign up tocoming into a TPP negotiationwhere leaders had agreed to ahigh level of comprehensivenessand ambition, so we’re hopingthey stand by that commitment.“Themarket access from a

deal like this will broaden anddeepen trade relationships.Wesee it as amove to increase theliquidity in the dairymarket,smoothing prices and reducing

volatility while increasingopportunities for trade.”Grosermaintains the negotia-

tions are a “game of two halves”and those issues tend to bediscussed last because of theirsensitivity. But if NZ is relegatedto the sidelines in the closingphases of play – all bets are off.

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BRIEFLYBreast screen

The Waikato Breast Screenmobile unit is currently in TeAwamutu.

Women between the agesof 45-69 are eligible for freescreening at the unit which isbased in Selwyn Park (behindthe Te Awamutu i-Site VisitorInformation Centre).

The unit will be in TeAwamutu until June 14, thenwill return between August 12and September 13.

To make an appointment orfor enquiries phone 0800 270270 200.

Chasing ‘slam’Victory for Andrew

Nicholson at Badminton,starting tomorrow (NZ time),would see him become the firstKiwi and only the second riderin the world to take the RolexGrand Slam.

Kihikihi’s favourite son hastwo of his most experiencedhorses, Avebury and Nereo,on the card.

The rider who winsBadminton, Burghley andKentucky consecutivelypockets $US350,000.

The action gets underwaywith the first horse inspectionon Friday morning (NZ time),followed by two days ofdressage, the cross country inthe early hours of Mondaymorning and finishing with theshowjumping on Tuesday.

Secure homesBurglaries in the Waikato

have soared over the schoolholidays.

Hamilton TacticalCoordinator, Senior SergeantFreda Grace says there havebeen 99 burglaries reported inthe Waikato between ANZACDay and Monday morning.

"In many cases theburglaries involved youngpeople targeting electronics,alcohol or other easilytransferable goods.’’

Ms Grace urges people toget back to basics — securingproperties, making contactwith neighbours, recordingserial numbers of valuablesand reporting any suspiciousactivity.

FINAL PUSH: Downer contractors prepare Alexandra Street outside Te Awamutu College for new seal.

Final stage of majorproject under way

Work has begun on sealing TeAwamutu’s Alexandra Street,the final stage in the upgradeproject.

The sealing work will takeseveral weeks and is being donein small sections to minimisetraffic delays as well as disrup-tion to residents and businesses.

The underground work isalmost complete, with newwater and wastewater pipes nowlaid down most of Alexandra

Street from Tawhiao Street tothe railway crossing outsideFonterra, said Waipa DistrictCouncil service delivery mana-ger Barry Bergin.

‘‘We are pleased with theresult of the work to lay thepipes, and now we are askingresidents and businesses to bearwith us as we enter the last stageof this major project,’’ MrBergin said.

The cost of the $2 million

upgrade has been reduced bycombining the water servicesworks with the road reconstruc-tion.

Sealing work has begun out-side Te Awamutu College to takeadvantage of the reduced schooltraffic during the holidays. Thesection outside Fonterra will bedone last to coincide with thefactory’s quieter period.

There will be some timeswhen homeowners and busi-

nesses face restricted access,and the contractor, Downer isworking with those affected totry and keep disruption to aminimum. Traffic delays arepossible and detours away fromAlexandra Street may also beused during this phase of work.

dents, businesses and motoristsfor their ongoing patience as wec o m p l e t e t h i s i m p o r t a n tupgrade work,’’ Mr Bergin said.

dminton,w (NZ time),ecome the firste second riderke the Rolex

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RURAL

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SUPPLEMENT TO TE AWAMUTU COURIER, TUESDAY, AUGUST 19, 2014

RURAL

ROUNDUP

North Is. Schedule This Last Year Versus$/kg CW net Week Week Ago 5-yr Avg

BEEF GRAIN & FEEDOVERSEAS PRICES FARMGATE PRICES

DAIRY FORESTRYPOWDER PRODUCTS FAT PRODUCTS

GlobalDairyTrade Previous Year VersusUS$/t Auction Ago 5-yr Avg

MORE: The information above is extracted from key reports produced by NZX Agrifax, the leading provider of specialist industry data and intelligence on the New Zealand sheep, beef, dairy, forestry, venison, wool and grain sectors. Please contact us to view the full reports. www.agrifax.co.nz | [email protected]

metservice.com | graphic compiled by

North Is. Schedule This Last Year Versus$/head net Week Week Ago 5-yr Avg

SHEEP WOOLOVERSEAS PRICES FARMGATE PRICES

WMPAMFAverage

P2 SteerM2 BullM Cow

Lamb 17.5kgLamb 19kgMutton 21kg

40

60

80

100

120

Oct�12 Apr�13 Oct�13 Apr�14 Oct�14

NZ$/t

200

400

600

800


NZc/kg

29�Micron 39�Micron Lamb

200

300

400

500


NZ$/t

Milling�wheat Feed�wheat Feed�barleyOct 12 Apr 13 Oct 13 Apr 14 Oct 14

Milling�wheat Feed�wheat Feed�barley

250

350

450

550

Oct Jan Apr Jul

NZc/kg�(net)

5�yr�avg 2013/14 2014/15Oct Jan Apr Jul

5�yr�avg 2013/14 2014/15

Local beef schedules are still on the rise with bull and steer values lifting to $5.70/kg. This now means that a 320kg steer or bull is now worth more than $1800. Cull cows are also making big money for those few farmers offl oading some cows returning $4.50-$4.70/kg.

� �

Dairy commodity prices have steadied in the past week as little has changed in terms of market fundamentals. Supply is strong out of all major exporting regions, and it remains a buyer’s market. China’s WMP imports in September dipped below year-ago levels for the fi rst time this year.

2503 2443 5058 –29% 3346 3117 5007 –20% 2640 2599 4888 –25%

5.04 5.02 4.32 +29%

107.38 107.35 108.62 –2%

5.01 5.01 3.99 +36%

116.76 116.73 117.98 –2%

3.85 3.85 3.04 +39%

61.68 61.68 71.15 –8%

� �

Lamb numbers have been slow in coming forward this spring, with meat companies early season chilled Christmas production running behind schedule. Although more lambs are on the ground, there are more sets of multiples that are slower growing in comparison to last year.

� �

50

75

100

125

Oct Jan Apr Jul

NZ$/hd�(net)

5�yr�avg 2013/14 2014/15

2000

4000

6000

Jun Sep Dec Mar

US$/t

2012/13 2013/14 2014/15

PALM KERNEL DROPS [email protected]

Palm kernel prices have continued declining in the last few weeks with spot prices dropping to as low as $199/t in some parts of the country.

As palm kernel is a by-product of palm oil production, sellers in Malaysia and Indonesia tend to just take the price on the day in order to shift volumes and not let supplies build up. Due to a lack of demand, prices have recently sunk as low as US$85/t. Spot market palm kernel is now available ex-store in the Waikato from as little as $199/t with three month contract rates not much higher.

Weak global dairy prices and falling payout expectations have limited demand. The AgriHQ Farmgate Milk Price Calculator is suggesting a price of just $4.75/kg MS for this season, and most bank economists also expect a drop in the payout.

There is a feeling among importers that there may not be much more easing in price from here though, prices are very low ex Malaysia and there are less downside expected. Despite the lower milk payout, reduced prices are still likely to stimulate demand once dry conditions start to creep in when summer arrives.

Reports suggest that despite prices dropping dairy farmers that had previously signed contracts at $250/t-plus earlier in the year are still following through and taking delivery at the contracted rate. Those farmers that had planned to top up their contract volumes or are willing to increase the quantity used are now entering the spot market in attempt to lower their average cost across the season.

CHRIS TAYLOR – Agriculture Market Analyst

200

300

400

500

Jan 13 Jul 13 Jan 14 Jul 14

NZ$/tonn

e

ASW PK (Canterbury) Feed barley (Canterbury)

Australian Grain vs NZ Feed Prices

4

5

6

7

8

9

100

200

300

400

500

Oct 10 Jul 11 Apr 12 Jan 13 Oct 13 Jul 14

$/tonn

e

$/kgMS

Oct�10 Jul�11 Apr�12 Jan�13 Oct�13 Jul�14Palm kernel Fonterra milk price

Palm Kernel vs Fonterra Milk Price

30Oct2014

15/10/14��

� � �

��

As at October 25, 2014

Last 15 Days

The NZX Pasture Growth Index (PGI) is

an indicator of potential pasture growth

based on three key climatic variables –

temperature, moisture and light.

Pasture Growth Index

Above normal

Near normal

Below normal

NZX DAIRY PGI

NZ Feed Grain IndicatorNZ Feed Grain Indicator

Agrifax Log Price Indicator

Wool Prices

Agrifax WMP Price

North Island Steer Schedule

North Island Lamb Schedule



Wheat harvesting record brokenNo.8 WIREwith DOUG LAING

PASSION: KeithSatchwell is stilltriallingwinningdogsat almost 92 yearsold.

New Holland Agriculture hasreclaimed the Guinness WorldRecords title for harvesting wheatwith a single machine.According to Farming UK, 797.656tonnes were harvested in eighthours on August 15, with the world'smost powerful combine — the 653hpCR10.90. It took just six hours tobreak the previous record of 675.84tonnes.It happened at HR Bourn and SonsFarm in Grange de Lings, nearWragby, Lincolnshire, United King-dom. The target field had been sownwith Santiago wheat last northernautumn, but it was not until Maythat it was chosen for the record-breaker, because it representedreal-world growing conditions.The record-breaking day’sharvesting, which started at11.17am, was characterised bychanging weather conditions, withthe ambient temperature rangingfrom 18-21C and light showers from5.30pm onwards.The CR10.90’s average throughputwas 99.7 tonnes/hour and peaked at135 tonnes/hour in a crop yielding an

average of 9.95 tonnes/ha and anaverage moisture content of 16.2 percent.The record was achieved using amere 1.12 litres of fuel per tonne ofgrain harvested, with the strawchopper engaged throughout theday.

Dogtrialling, at 92

Hawke’s Bay sheep dog triallistKeith Satchwell is planning anotherseason, by which time he will haveturned 92.Satchwell, a Monte Cassino vet-

eran who first competed in thenationals in 1954 and who won anational title at Blenheim in 1960,entered two dogs for the Hawke’sBay Show last week, one being12-year-old Sue, with which he wonthe short head and yard run at theWaikoau club’s trial north of Napierin February. He also has Glen, whichwon a South Island title withRaupunga farmer Tom Manson thisyear.Satchwell, who lives on a small

block near Hastings with his wife,the dogs and a small number ofcattle, turns 92 next month.

Wanted: Investmentadvisors

The Ministry for Primary Indus-tries is seekingmembers for the newPrimary Growth Partnership Invest-ment Advisory Panel (IAP).A partnership between the

Crown and the primary industries,the partnership will invest in pro-grammes to drive substantialeconomic growth and sustainability.Its role is to determine which

proposals should become businesscases, and provide recommenda-tions to the MPI director general onthe investment of Crown funds, andto monitor existing investment pro-grammes.

Young guns’ shearchallenge

Young shearers in the SouthIsland have started a series that willsee two of them winning entry,travel and accommodation for theNew Zealand Championships in TeKuiti in April.The circuit, which is based on

points for placings in the intermedi-ate and junior heats at six compe-titions, started at the Ellesmere A&PShow on October 18 and ends withfinals at Sefton, in Marlborough, inMarch.


Recognition for future leadersYoungMaori need their

rural careers nurtured. Thatiswhat theAhuwhenuaYoungMaori Farmercompetition is all about

THISCOMPETITIONNOTONLYENCOURAGES

DEVELOPMENTBUTHELPSTRANSITIONOUR

YOUNGMAORI THROUGH

AWARDS

GOING PLACES: JordanSmith, 2013AhuwhenuaYoungMaori SheepandBeefFarmer of theYear. PHOTO/ YOUNG COUNTRY

THEIR LEARNINGANDCAREERPATHWAYSTHATREALISESNOT

ONLYTHEIRPOTENTIALBUTTHATOFOURNATION

DOORS ARE opening for anew generation of skilledfuture-focused workers,shepherds, managers and

owners, says the co-ordinator of theAhuwhenua Young Maori Farmercompetition, Peter MacGregor.“Succession planning is a real

challenge for sheep and beeffarmers but doors are opening,’’ hesays.This year, the award targets the

sheep and beef industry andMacGregor, a past judge of thecompetition, says it’s especiallyimportant that youth in this sectorare provided with the opportunityto grow their careers and aredeveloped to their full potential.“This competition not only

encourages development but helpstransition our youngMaori throughtheir learning and career pathwaysthat realises not only their poten-tial but that of our Nation, AotearoaNew Zealand,” he says.MacGregor is the head of Te

Kauta Whakaruruhau MataurangaAhuwhenua (Te Kauta), a partner-ship of Primary ITO and the Fed-eration of Maori Authorities. Thepartnership’s focus is to developstreams of training and learning forMaori and Maori agribusinesses asdetermined by the needs of individ-ual trusts, incorporations, whanau,hapu, iwi, farmer and Maoriagribusiness entities.Sponsored by Primary ITO, Te

Tumu Paeroa, Te Puni Kokiri andAllflex, the competition is aboutcelebrating leadership qualitiesand inspiring young Maori intocareers linked to growing theMaoriasset base.Last year, the Ministry for Prim-

ary Industries reported that aboutone million hectares of Maori free-hold land is under-performing orunder-utilised and that bringingthis land into production has thepotential to yield $8 billion grossover 10 years and create 3600 jobs.The highest value use for morethan 90 per cent of this land isconsidered to be sheep and beeffarming.“We need to place a greater

emphasis on educating young Ma-ori with the skills that are relevantfor our growing base of agriculturalassets. We want Maori to be fullparticipants in mobilising theirland— and this means having moreMaori with the skills and expertiseto farm their lands,” says JamieTuuta, head of Te Tumu Paeroa.“I am very pleased that we have

an award that recognises them, andsupports them in their future ca-reer,” says Tuuta. “The prospectsare great for Maori to take advan-tage of developments in the Maorieconomy — particularly in leader-ship roles.”

■ Entries to the competition closeon February 13, 2015. Aswell as acash prize, each of thecompetition finalists will receivea $1500 training scholarship tohelp their professionaldevelopment. Application formscan be downloaded fromwww.ahuwhenuatrophy.maori.nz.


Feed growers also feel price pinchHopesarehigh thatmaizevariety trialswill identifycost-friendly domestic feedthat canundercut the costof importedGMfeed

DAIRYFARMERSARENOTTHEONLYONESWHOWILLNEED

AGOODSEASONTOCOMPENSATEFORTHEPRICEDROP

COMMENT

withJOHNHODGE

WAIKATO DAIRYfarmers are not theonly ones reelingfrom the dairy price

drop. Dairy support and maizegrowers are worried too.The recent publicity about the

projected milk price for the cur-rent season has focused largelyon dairy farmers but readersshould be aware that this dropalso has a direct effect on dairysupport providers. Supplementfeed for dairy herds, such as hay,grass silage, maize silage andmaize grain, is a big part of thedairy industry and comes fromthe arable industry.Dairy farmers have been told

by bank managers, farm advisersand others to have a good, hardlook at their expenses and to cutout any unnecessary spending.This is astute advice but, at thisstage of the season, the cut shouldnot come at the expense of thecow. Milking cows should be fedto capacity and, through highquality supplementary feed,should gain weight prior tomating.We arable farmers, like dairy

farmers, have been advised tolook at the costs of our productionand, where possible, to cut backon unnecessary expenses. This isnot easy to do with maize as it is acrop that requires high inputs. Iffertiliser and weed spray are cutback production will really suffer.And, after two years of drought,we can’t afford to cut back,especially with contract prices formaize silage and maize graineasing to $410 to $420 a tonne forthe coming season. Dairy farmersare not the only ones who willneed a good season to compensatefor the price drop.Throwing another spanner

into the works, there arereportedly many feed mills in theNorth and South Islands thathave purchased imported grain,which will impact on the demandfor domestic grain. Brewers’ grainis being dumped in New Zealandfrom the US at a discounted price,which is a worry to growers here.A lot of these imports are alsogenetically modified (GM), raisingthe debate for the potential of GMin New Zealand. The varieties wegrow now have been modifiedwhich, in some cases, have taken30 years to do instead of five yearswith GM, but let’s look at it from ascientific point of view ratherthan from an emotional one.In this area, the Dairy Industry

Technical Advisory Group(DITAG) is developing a declara-tion form to be filled in by farmerswho grow feed for sale to dairyfarmers, and by farmers who buyin feed. I have contacted growersfor their response to this proposaland, without exception, they havesaid that they will have nothing todo with this until the feed that isimported, which would includepalm kernel extract, carries thesame declaration.Not all is doom and gloom in

the maize world. The Foundation

for Arable Research (FAR) isexpanding its trials area atTamahere to include independentmaize variety trials this season.Growers have been asking FAR todo this for quite a while. Theycurrently do it in the South Islandwith wheat varieties with excel-lent results for growers downthere.Four locations have now been

chosen with two in Waikato but,

unfortunately, Genetic Techno-logies have pulled out of thistrial, which is disappointing.Nevertheless, we will bewatching this trial with greatinterest.Fingers crossed for the

season ahead.

■ John Hodge is FederatedFarmers’ Waikato Arablechairperson.

COMMENT with FRAN O’SULLIVANOct 30, 2014 · Oct10 Jul11 Apr12 Jan13 Oct13 Jul14 $ /tonne $ / kgM...

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Transcript of COMMENT with FRAN O’SULLIVANOct 30, 2014 · Oct10 Jul11 Apr12 Jan13 Oct13 Jul14 $ /tonne $ / kgM...