Rural News 1 July 2014

JULY 1, 2014: ISSUE 564 www.ruralnews.co.nz

RURALNEWS

DAMN THE DAMNERSFarmers take to the streets in Waipukurau. PAGE 12

SELF-PROPELLED SPRAYERLow hanging fruits, crops on the radar. PAGE 42

TO ALL FARMERS, FOR ALL FARMERSSEE PAGE 8

THREE GOLDS FOR ZESPRI

China exports soar

Simon Limmer, Zespri’s general manager for China, shows off three identical gold kiwifruit. But don’t be deceived by the colour, because the taste of the three are quite different – sweet, sweet-and-sour and very sweet. The new kiwifruit are a sign the industry is now over the hump of PSA and things are looking brighter for growers. See story p9

A NEW era is unfolding for the meat industry with the rapid, unprecedented growth of the Chinese market, says the chief executive of the Meat Industry Association (MIA), Tim Ritchie.

One hundred years ago the focus was on the UK market, but a new era arrived in the 1970s when Britain joined the European Union and New Zealand was forced to diversify into other markets

including more of Europe, North Amer-ica and especially the Middle East.

But with China now taking 40% of New Zealand’s lamb exports the para-digm has changed again.

The China market’s importance to New Zealand is seen in a visit during the past few weeks by a group led by the Meat Industry Association chairman Bill Fal-coner.

Ritchie says this was the highest pow-ered overseas delegation in 40 years. It included chairmen and chief executives

of all the leading meat companies, intent on relationship building with Chinese business people, trade associations and government officials.

“The business in that part of the world has grown very quickly – probably more quickly than the relevant relationships at the regulatory and trade level. Many indi-vidual companies have relationships with their commercial partners there, but we haven’t done that at a whole-of-industry level with regulators and the trade bodies in China. They have associations sim-

ilar to the MIA but with a much broader mandate, and they sort-of act as a bridge between the regulatory authority and the industry itself.”

Ritchie says it was very important that top people from the meat indus-try fronted to demonstrate the supreme importance New Zealand places on that market.

They wanted to tell the Chinese they were in the market for the long haul and wanted to understand their needs and establish good relations with govern-ment regulatory bodies dealing with imports into China. The meetings were very successful and will help develop better long term relationships.

Following their meetings the New Zealanders stayed on for the World Meat Congress in Beijing with a worldwide attendance of at least 1000.

China’s entry into the lamb market is producing excellent benefits for New Zealand. Lamb flaps, once considered low value, are popular in China in a dish called ‘hotpot’. The Chinese now pay more for flaps than they once paid for shoulders.

PETER BURKE

[email protected]

Get off the fenceSHEEP AND beef farmers should stop looking over the fence with envy at their col-leagues in the dairy industry, says Beef + Lamb New Zea-land chairman James Parsons.

His comments follow those in a recent KPMG Agribusiness Agenda, that some sheep and beef farmers are losing self esteem as they see the busi-ness success of dairy farmers.

But Parsons says sheep and beef farmers need to realise that it’s “not all beer and skit-tles” in the dairy sector, where farmers must endure early morning rising, long work hours, moving stock and reg-ularly monitoring such things as pasture growth.

“Sheep and beef farmers must stop looking over the fence at what other people are doing and instead start refin-ing what they do themselves.

“There are three types of farmers: those who look at their boots, those who look over the fence and those who look at the horizon.”

Parsons says it’s a fact that dairy farmers tend to invest more in technology, but con-fidence drives that sort of investment. Many efficient sheep and beef farmers have per-hectare profit up there with dairy farmers.

– Peter Burke

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RURAL NEWS // JULY 1, 2014

NEWS 3

NEWS�.............................. 1-17

WORLD�.........................18-19

MARKETS�.................... 20-21

AGRIBUSINESS�........... 22-25

HOUND, EDNA�................... 26

CONTACTS�......................... 26

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Professor queries uni’s changes

GERMAN COMPANY BayWa says it has no plans to delist fruit and veg-etable trader Turners & Growers.

The company is sticking to the commitments it made to the New Zealand Government three years ago when it bought T&G, saying the company would stay “as a listed company here on the New Zealand stock exchange”, BayWa’s chief executive Klaus Lutz told a func-tion last week.

BayWa always also said it wanted to be part of the consolidation of the industry in this country, Lutz says. Lutz, who also chairs the T&G board, flew to Auckland for the PMA Fresh Connections conference.

Over the last months there had been negotiations for the pur-chase of Hawkes Bay based Apollo Apples. The transaction is still sub-ject to Overseas Investment Office approval. “But we are confident we will get approval finally,” he says.

He says BayWa is happy with the transaction it made three years ago (to buy the major shareholding in T&G) and the results of the last three years. The budget will need to be worked on for 2014 and he is con-fident they can get it under control and “we can go back to the capital market and tell them the invest-ment BayWa made a few years ago was a very positive one”.

Lutz says Jazz and Envy are promising varieties. They are important for T&G and for BayWa and for the future.

T&G chief executive Alastair Hulbert says this year it is succeed-ing worldwide with Jazz and Envy apples.

“It is proving the value of a coor-dinated programme running from the field right through to the con-sumer. It is driving value for our customers and our growers alike. It is continuing to build year on year.”

PAM TIPA

[email protected]

No plan to delist

Council’s $80m tickTHE HAWKES Bay Regional Council (HBRC) has voted for building the Rua-taniwha storage dam and has allocated $80 million towards its construction.

But the project faces many hurdles including obtaining major investors and getting farmers to commit to buying water from the scheme.

The government board of inquiry (BOI) was due last Friday to have declared its final decision on the pro-posal, the day after Rural News went to press. While the BOI granted consents for the building of the dam itself, in its draft decision it imposed major restric-tions on land use in the Tukituki River catchment – known as Plan Change 6.

Farmer groups including Federated Farmers, DairyNZ and Fonterra made

submissions on the BOI draft decision, but as Rural News went to press there was no word on whether these submis-sions carried any weight.

The chairman of HBRC, Fenton Wilson, says the decision to allocate money for the project was important.

“The decision is more than sym-bolic; it’s quite definite and sends a very strong message to the farming commu-nity, to the investment community and to the country that Hawkes Bay has put its money up and is ready for business. Our money is now locked in. We are the cornerstone investor and we’ve allo-cated the funds and it’s in the bank but of course there are a whole lot of other challenges to be overcome before the diggers start going up the road.”

Before the council can hand over ratepayers’ money certain conditions must be met, notably local farmers must sign up to buy some 40 million m3 of water, the investment company responsible for the dam must find at least another $155 million to add to the HBRC’s $80 million, and workable envi-ronmental consent must be gained for the project.

Wilson says the council will require proof that all the conditions it has set are fully met – “condition precedent” is how he describes it. There is no time-frame for this but the opting out by Trustpower and Ngai Tahu poses chal-lenges for the Ruatahiwha Investment Company: it must find other investors. – Peter Burke

THE IMPLEMENTATION of Lincoln University’s new vision is going hor-ribly astray, says its professor of farm management and agribusiness, Keith Woodford.

He told Rural News that he essen-tially agrees with the overall vision but says the way the vision is being imple-mented is crazy. In his area he’s having to shed staff, while student numbers are increasing. His present eleven staff will be reduced to seven.

“This is a debate going on for the heart and soul of Lincoln. Those of us who teach in farm management and agribusiness believe in a ‘pasture to plate’ approach which is integrating commerce and science. The university wants to teach things like farm man-agement from what they call a ‘com-merce plus’ perspective, meaning you have people who have general skills in commerce who then seek out particu-lar applications in agriculture.”

Lincoln University vice-chancellor Dr Andy West declined to comment.

The situation is “driving people to distraction,” Woodford says.

“At this stage I’m still trying to get traction on key ideas such as if you have a farm management course with 180 students that you are taking out onto farms, you can’t do that with one lecturer.

“There is a huge amount more work in teaching a ‘case study’ based course in farm management to these very big numbers, than teaching a generic subject in, say, economics or statistics which comes straight out of a textbook.

“That’s the nub of the issue which we are debating at the moment and which I am not winning.”

Woodford says there are other phil-osophical issues the government has to look at in respect of what’s going on in universities. The government has in place a measure called the performance

based research fund (PBRF).“This encourages staff to publish

in international journals on very the-oretical issues and there is a lot of discouragement of staff taking more practical approaches.

“Fundamental science is really important but, hey, in an institution like Lincoln we need staff who can get out there and talk to farm-ers and deal with issues as

they present themselves on the farm. “[The government approach

affords] no room for staff in univer-sities who don’t have PhDs and who aren’t publishing in international jour-nals. Whereas if you publish work in journals such as Primary Industry Man-agement here in New Zealand or the Proceedings of the Society of Animal Pro-duction you don’t get any credit for that. [But] it’s those sorts of articles in those sorts of journals that get through to the farm. I don’t think we’re getting it right at the moment.”

PETER BURKE

[email protected]

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4 NEWS

'Tragedy of the commons' loomsNEW ZEALAND’S dairy farmers are heading for a ‘tragedy of the commons’ crisis, Dairy NZ’s strategy and invest-ment leader on sustainability Rick Prid-more, warns.

Speaking at last week’s Business SIDE, the South Island Dairy Event’s conference within a conference, he told attendees they’re in danger of crippling the industry for everyone if they don’t act collectively to address environmen-tal issues and perceptions.

“If we all behave independently, in our best interests, and they start imposing environmental limits, we are all shooting ourselves in our collective feet,” he warned.

The ‘tragedy of the commons’ eco-nomic theory was defined by Garrett Hardin in the 1960s as the phenome-non of individuals acting rationally in their own interests, but collectively

those actions spelling disaster for the common resource(s) on which they depend.

Collapse of fisheries is the clas-sic example but dairy farmers seeking to convert every last hectare of land in catchments that can’t cope with the nutrient loading could become a modern day New Zealand proof of the phenomenon.

“The biggest reason we’re over-shooting [water quality limits] in catch-ments is land use change. Second is intensification, and third is poor prac-tice. It’s fantasy to suggest good prac-tice is going to solve all the problems,” said Pridmore.

A few regions and catchments, such as Rotorua Lakes and Taupo, are already in the situation where regional plans designed to give effect to central gov-ernment’s national policy statement for freshwater management are jeopardis-ing farm businesses. “I go to meetings where people end up crying.”

While in an ideal world regional councils would never have allowed such situations to arise, historically science and knowledge was lacking and now they are obligated to sort them out. Pridmore says farmers must work together to find solutions with other stakeholders.

“If you don’t work with your mates to solve these problems you will be hurt, and you could be hurt a lot.”

Constraints on the industry risk sparking infighting and loss of cooper-ation and innovation across the sector – major strengths of New Zealand’s industry to date, he added.

Processors need to play their part too, Pridmore warning that ‘indus-try good’ work appears increasingly to mean what’s good for the dairy com-pany, rather than the farmer.

“Can it be both? Only if you really work together well.”

A couple of examples of that were relayed at the conference during work-

shop sessions.“The first thing is to engage those

people who don’t turn up for meetings and think if they just carry on farming they will be fine,” said Graeme McKen-zie, one of a trio of farmers who spoke about their experience farming in Southland’s Waituna catchment.

The area hit the headlines “out of the blue” in February 2011 with four inde-

pendent scientists warning the lagoon which it drains into was on the point of “flipping” to a eutrophic state.

Working collectively the farmers prevented a knee-jerk reaction from Environment Southland and by making many small changes and, in some cases, considerable investment despite the uncertainty of five-year consents, things appear to be improving.

ANDREW SWALLOW

[email protected]

Ice Maidens: South Island Dairy Event (SIDE) committee members Heather Stevenson and Annalize Du Plessis dish out TipTop ice creams and lollies in Invercargill last week.

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NEWS 5

Opening Fonterra to the worldThe annual South Island Dairy Event last week attracted a record attendance for Southland with its usual mix of first-class keynote speakers, practical workshops and networking opportunities. Andrew Swallow reports on some highlights.

GOODBYE FORTRESS Fonterra, hello globally connected co-op.

That’s Fonterra chief executive Theo Spierings’ goal, judging by his pre-sentation last week to the South Island Dairy Event (SIDE) in Invercargill.

“We need to trans-form the cooperative from a proud New Zealand cooperative to a globally relevant and globally con-nected cooperative,” he told the 546 attendees, a record for SIDE in South-land.

To do that requires focus on things that truly make a difference, and Fonterra’s reputation is a priority. “If your reputa-

tion is doubtful you are not going to win.”

At home initiatives like Milk for Schools and looking after waterways are essential. Overseas it means shifting perception from ‘Fortress Fonterra’ with four distinct divi-sions to one approachable company.

“We have only 3% market share around the world and that is how we have to behave, not like the 90% milk collec-tor in New Zealand with sometimes big, arrogant behaviours.” He conceded there’s “still a lot of work to be done” in getting that across.

Maintaining or growing

market share with global consumption growth of 3% a year and traded volume increasing 6% a year will require more overseas milk.

“If our focus is only on the New Zealand milk pool we’re going to lose market share… We have to be present in other milk pools,” Spierings said, later saying supply would come from six milk pools.

“But our sustainability in New Zealand is essen-tial. That’s out ticket to the international trade.”

China would con-tinue to be a key market but Russia could soon be as important. “The Rus-sian market might even be

bigger in five years than China.”

At present “Fonterra’s pretty good in all geogra-phies except Russia” but “that is going to change,” he added, pointing out Russian president Vladi-mir Putin doesn’t consider as “friends” the European Union and Ukraine, which currently supply 85% of Russia’s dairy imports.

“If that stops, where are they going to get their milk?”

Increasing returns on every litre of milk sold from the current New Zea-land export average of $0.90/L – 30% behind the global average of $1.2/L – to $1.15/L is another aim. “Right now we make everything in New Zea-land. Should we make everything in New Zea-land? Maybe not.”

Traditional cheeses and casein were singled out as “reduce immedi-ately” categories. “We need to shift to what we’re good at, which is making

THEO SPIERINGS’ SIDE presentation came nearly three years since he joined the cooperative.

“It has been three years in the scrum. That’s how it feels,” he admitted, reflecting on the Trading Among Farmers debate that was in full swing when he joined, but not mentioning the whey protein scandal that broke a year later.

However, he did say that looking

at Fonterra from the outside prior to joining he “saw a few issues”, notably the noise about water quality, the perception of a closed circle of farmers accumulating wealth not accessible to others and availability of milk domesti-cally.

“Milk was not accessible to the young. In a country that’s a major exporter of milk to the world that’s not acceptable.”

Three years 'in the scrum'

milk powder products…. It doesn’t mean we’ll not do casein: we might, but internationally sourced, not from New Zealand…. That would mean we can still service our custom-ers.”

Similarly, with reduced cheese making – Fonterra now makes 300,000t and the domestic market is 25,000t – Fonterra would

look to Europe to source whey product, he added.

At least $800m is being spent in New Zealand to deliver on that strategy and avoid the 60-day peak supply problem it faced last year when Fonterra’s “back was to the wall” with no choice about product mix. “We want 10% flexi-bility over that peak.”

That $800m “does not

include Lichfield” Spier-ings said, alluding to investment in a powder plant at the Waikato cheese site, or “a possi-ble next step in the South Island” where supply is still growing “very fast and we will come into capac-ity constraints pretty quickly.”

Theo Spierings@rural_newsfacebook.com/ruralnews

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6 PMA FRESH CONNECTIONS CONFERENCE

Let’s work more closely – JoyceNEW ZEALAND and Australia should align commercially in as many fields as possible, Australia’s Agriculture Minis-ter Barnaby Joyce told the PMA Austra-lia-NZ conference in Auckland.

With 1100 guests from 10 coun-tries it was the largest ‘Fresh Connec-tions’ conference ever held by PMA,

co-hosted by Horticulture New Zea-land, United Fresh New Zealand and the Australian Chamber.

Speaking via video link, Joyce noted that Perth is further from Sydney than Sydney is from Auckland. Melbourne is further from Darwin than from Wel-lington.

“So it makes sense for us to have a close commercial alignment between our two countries on as many fields as

THE MINISTRY for Primary Industries fruit fly plan has been peer reviewed by international experts and reflects international best practice in responding to fruit fly detections, says Primary Industries Minister Nathan Guy.

Since the detections in Whangarei earlier this year, MPI has launched more measures including more traps in and around the Whangarei area, trialling greater use of detector dogs for large vessels, enhanced ques-tioning and risk assessment of passengers arriving from high risk areas and handing out information to yachties intending to sail to New Zealand from the Pacific.

“We also increased funding in Budget 2014 by $17 million with a focus on strengthening core systems to do with biosecurity and safety. The funding increase pays for more MPI staff in overseas markets, strengthening and developing overseas relationships and ensuring on-the ground expertise to help resolve trade issues.”

Guy pushes stronger biosecurity

possible. We also have a complemen-tary position: Australia with a Medi-terranean climate and dry, and New Zealand cold and damp. We have the capacity to have good links.

“It is essential we get a better return back to the farmgate. We [need] those channels – which go from the farmgate to the shelf – well and truly organised. PMA Australia NZ gives us the oppor-tunity to build those relationships and to grow this connection so that we have beneficial relationships between our-selves and South East Asia, and have the capacity to learn from each other and tap into great new export markets. I hope this organisation, with over 160 corporate members, builds those net-works so we can grow as a region.”

Joyce says we need to make sure our parochialisms are not attached to our commercially beneficial arrangement of working to a mutual goal. He looks forward to a strong involvement with PMA in building those networks to get a better return back to the farmgate.

Horticulture New Zealand president Julian Raine said Fresh Connections was the largest horticultural conference ever held in New Zealand.

New Zealand’s horticulture indus-

try enjoys a tradition of strong year-on-year growth fuelled almost entirely by our determination to export our products to the world. At last count we were exporting horticultural products to at least 155 countries. This takes huge effort and dedication.

“We don’t have all the answers. Inno-vation takes time, money and inspira-tion. It is hard to gather all those in one place especially when you are working in your business more often than on your business. That’s why conferences like this are so important.”

PAM TIPA

[email protected]

HortNZ president Julian Raine at the conference.

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PMA FRESH CONNECTIONS CONFERENCE 7Making the sea journey togetherNEW ZEALAND will end up with one or two big ports and a couple of shipping companies that send huge ships when it suits them, not us, says Phil Turner, Fonterra’s director business transformation.

One area in which horticulture and Fonterra could work together is in the supply chain.

“We have a joint venture with Silver Fern farms called Kotahi. We are very interested in doing better for New Zea-land in shipping and transporting.”

There could be better ways of filling up those ships with stuff coming in and stuff coming out, Turner says. “So we got together with the meat guys because it gives us scale we can use to deal with the shipping companies.

“Can we add fruit and vegetables in there as well? We have seasonal complementarity between products: that would be interesting. We have a big milk curve: we fill our ships largely between October and March but not for the rest of the year.

“There are opportunities in working with other com-plementary industries – agricultural exporters and import-ers. We are in fact talking to guys at The Warehouse to put together a deal to keep the shipping companies honest and reduce our costs of getting our goods to China.”

Turner’s remarks were prompted by a question from the floor at the major transTasman horticultural confer-ence PMA Fresh Connections in Auckland last week.

China easier to trade with than US, EU

CHINA HAS an extraordinary number of entrepreneurs: many billionaires in China got there by massive, serial risk taking, says Fonterra’s director business trans-formation Phil Turner.

“They tend to make their money in one industry initially – often real estate or food – then expand rapidly into unrelated areas. It may appear to you or me as a mess. Typically they will have a number of ventures underway at any one time. Maybe seven of those fail – but three hit the jack-pot.

“Compare that with New Zea-land and Australian companies, like mine. We are very cautious, we mitigate risk, we take ages over business cases, we have cautious boards and we concentrate on one or two ventures at a time if we are

lucky. So it’s not really surprising that foreigners are just too damn slow and the prize goes to the fast reacting, high risk taking local.”

He says for every one Chi-nese billionaire there are 100 or so who didn’t make it.

“New Zealand is regarded as one of the least corrupt countries in the world to do business. But it can also make us naïve when it comes to dealing with a country as dynamic and complicated as China.

“Whatever you may think, your counterpart or partner in China is not looking for a level playing field: he or she is looking to make money and be successful and will assess whether you are likely to help them get there or not.

“China’s government is quite explicit about wanting to see Chinese companies become suc-

cessful. It has no hesitation about picking winners. It wants to see Chinese brand names around the world and competing with the famous names of the west. It will

limit the success of foreign companies on the way.

“China is a bit like a teenager wanting to flex

its economic and polit-ical muscles and it has a political struc-ture that enables it to intervene in the

economy of the business world without any embarrassment at all.

“The best response is not to cry ‘foul’. Especially since China joined the WTO in 2001 it has been very respectful of interna-tional law including agricultural regulations.

“China is way more open, con-sistent, easier to do business with and less captured by domestic lobbies than Japan, United States

and the European Union. Enthusi-asm for picking winners is hardly unique to China; here we are in 2014 still talk about New Zealand film subsidies.”

Turner says the key thing is to show respect to China.

All foreign companies no matter how big or small are guests in China, he says.

“To succeed in business there we need to at least be aware of what the government is trying to achieve and at least be aligned to the government’s projectives.

“This does not mean pander-ing to a political agenda but under-standing what matters to China – typically issues like food quality, rural unemployment and building global brands.

“If foreign companies like ours can show we are working to sup-port those objectives officials will not only not interfere, they will let us achieve our objectives.”

PAM TIPA

[email protected]

Phil Turner, Fonterra

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TASTE RATHER than colour is the most impor-tant attribute of kiwifruit for consumers, says Zespri general manger for China, Simon Limmer.

Zespri now exports three varieties of gold kiwifruit, each tasting slightly different and appealing to consumers in different markets.

The taste difference is subtle, Limmer says. “Taste is an incredibly important attribute in sell-ing kiwifruit. Convenience is important but taste is probably the most impor-tant thing people are look-ing for and that drives repeat purchases.”

The new gold varieties are a far cry from the origi-nal green kiwifruit.

“The original gold which the industry has developed over the last decade, Hort 16A, has had phenomenal uptake in the market, particularly in Asia. It is a very sweet, consistently good tasting product.

“The new variety called G3 tends to have slightly more sour after-taste and is a combination of sweet and sour. It’s working well in the market now, in par-ticular our big gold mar-kets Japan and China. But it does differ from the old Hort 16A. The Charm vari-ety is sweeter again.”

Limmer says the G3,

with its slightly more acidic taste, tends to appeal to Europeans whereas the Asians prefer the sweeter tast-ing kiwifruit. Growers are now being incentivised to grow for high drymatter fruit – a key foundation of the kiwifruit industry.

The Zespri stand at the Waikato field days attracted many people

keen to sample differ-ent varieties of kiwifruit. Limmer says the onset of PSA three years ago made for pretty sombre discus-sions with growers at field days, but this year was dif-ferent

“There is a real sense of optimism. Grower returns are probably as good as they have ever

NEWS 9Kiwifruit – gold for some, not for others

PETER BURKE

[email protected]

been despite our foreign exchange rate being a neg-ative for us. Equity has recovered for orchard-ists; most importantly the value of orchards has recovered to pre PSA levels.”

While almost 99% of the kiwifruit grown in New Zealand is exported, Limmer says Zespri is

keen to reconnect with the domestic market. Often lower quality fruit makes it onto the domestic market but things may change, the market seeing a greater presence of the Zespri brand.

There is no evidence of what varieties New Zea-landers prefer, Limmer says.

“Anecdotally we all grew up with the green kiwifruit and so many New Zealanders seem to iden-tify with it. But the sweet gold changes the game. Good green kiwifruit is hard to beat but many like the gold as well and, who knows, we might see other colours in that rainbow in future,” he says.

Meat firm returns to blackAFTER TWO and a half years of “industry turmoil”, Blue Sky Meats is back in the black, and its chairman Graham Cooney predicts its result is a bell-weather for the sector.

“I expect all meat companies should have made a profit this year,” he told Rural News.

However, he say in his report to shareholders that status quo for the meat industry is not a viable option for the future.

The industry continues to be production- rather than market-led and most of its challenges are in New Zealand, not offshore. Cooney says there’s at least $5/lamb to be gained by developing a properly planned processing industry.

However, when asked how that’s to be achieved, he said, “That’s a good question. You need to have a substantial number of meat compa-nies and farmers on the same page. Is that likely? History says ‘no’.”

Transparency at all levels in the industry is a critical culture change needed in an industry that will in future be driven by demand to secure constant supply for interna-tional exporters, he says.

Cooney’s comments were made as the Southland lamb and calf pro-cessor announced on June 20 an after tax profit of $1.95m for the year ended March 31, a turnaround from a $3.88m loss last year.

A dividend of 10c/share will be

paid, distributing 59% of after tax profit.

Cooney, who founded BSM and retains a 9.5% shareholding, says a strong balance sheet and considered approach to the rapidly expanding Chinese market helped the com-pany negotiate the most difficult period in its history. Good people, at Woodlands in Southland and the Auckland Horizons marketing sub-sidiary, also helped the result.

Revenue for the 2013-14 year was down 2.2% on the previous year but costs were cut 9.9%, mainly by paying livestock suppliers prices that reflected the market, which hadn’t been the case in the previ-ous year.

Three varieties of gold kiwifruit taste slightly different.

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10 NEWS

Let’s collaborate, not compete

IRELAND AND New Zealand should collaborate rather than compete in world dairy markets, says Ireland’s ambassador Noel White.

He told Rural News the two countries being competitors makes each a good fit for working with the other. White says there is more to it than just product and markets: Ireland and New Zealand are

similar in size, population, production systems and the farming challenges they deal with. “Grass and rain” are two things that come to mind, he says.

“If you take the examples of the dairy side of things, New Zealand is a global leader and that is highly valued and something New Zealand is clearly to be congratulated for and we recognise it.

“We have a lot in common and can work together on growing our prod-ucts and space in the market together.

There’s lots of space there especially in the emerging markets such as China and Asia.

“There is space for us both and we can actually support and reinforce each other in those markets. To see our rela-tionship solely in terms of competition is to miss a trick – the trick is about col-laboration.”

One initiative taken by Ireland is called ‘Origen Green’ and recently Mike Petersen, New Zealand special agricultural trade envoy noted that New Zealand should take a similar initiative. White says Origen Green is intended to meet the needs of the modern sophisticated consumer.

“Origen Green is a voluntary system that food producers can sign up to which provides for traceability and measurability in the production of food and it gives the consumer a guar-antee that what they are buying lives up to those criteria. It then generates best practice within the industry.

“It’s not just the consumers who are sophisticated; the producers are also sophisticated about what the consum-ers want. The consumers in developed and emerging markets are conscious

and demanding about the quality of the food they want, so it’s important to stay with or ahead of the market you are

trying to penetrate.”

AMBASSADOR WHITE says Irish dairy farmers are excited about the lifting of EU restrictions on how much milk they can produce. The restrictions (quotas) come off in about one year.

White says Ireland hopes as a result of this to increase its milk production by 50% by 2020.

“We are clearly behind New Zealand in production, herd size and so on, but in Ireland I think you are going to see a lot of consolidation and intensifi-cation. A lot of young Irish farmers have grown up with the quota system and now feel they will benefit from the freedom of it being lifted.

“A 50% increase would bring us up to about 10 billion L by 2020. When quotas were imposed in the 1980s Ireland and New Zealand would have been producing about 5 billion L. New Zealand produces 20 billion L now, but there is capacity in Ireland to significantly increase production.”

Excited Irish eye more milk

PETER BURKE

[email protected]

@rural_newsfacebook.com/ruralnews

Irish Ambassador Noel White at the field days in Waikato.

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12 NEWS

Dam supporters take to the streetsGRIDLOCK DOESN’T often happen in Waipukurau’s main street, but on Friday June 20, if you’d been in a hurry to get somewhere, forget it.

Hundreds of people with trucks, quads and tractors gathered for a ‘Don’t damn our dam’ rally, in support of the proposed Ruataniwha water storage scheme (RWSS), then listened to pro-water storage speakers Dr William Rolleston, vice-president of Federated Farmers and its Hawkes Bay provincial

president Will Foley.Central Hawke’s Bay district and the

wider economy could benefit if the $275 million project goes ahead, the propo-nents say.

The rally was timed to remind the community that the dam project is a hot issue: the Hawkes Bay Regional Council (HBRC) is due to vote on June 25 on whether to spend $80 million on the RWSS, and the board of inquiry is due to deliver its final report by June 28.

Hawkes Bay Regional Investment Company (HBRIC) needs commit-

ment by June 30 to a minimum water uptake of 40 million m3. So far, there are 111 non-binding expressions of interest accounting for 42% of available water, or 44 million m3.

Gavin Streeter, one of two local elec-tricians who organised the rally says he was “sick and tired of hearing nega-tive commentary about the RWSS and decided to put a stop to it. I support this project and we need it.”

Rolleston says he attended, “because water is a national issue and I want to bring a message from farmers and fish-ermen of South Canterbury that water storage is good for the economy and environment”.

As a result of the Opuha water scheme South Canterbury is now pros-pering, Rolleston says. “It’s created over 500 jobs and is bringing over $100 mil-lion extra GDP into the region. We have a lake available for recreation – fishing, boating, kayaking and camping – and we have water, which gives reliability to the farmers of South Canterbury. It’s given farmers the options and secu-rity to make the investments they need. For the last decade we’ve been growing above the average GDP. Timaru is in the top three cities of New Zealand in

its growth; this sort of thing can happen with water.”

Central Hawkes Bay District coun-cillor Andrew Watts told the crowd, ”finally the majority is standing up and being counted. The Green anti-progress few have dominated this debate, push-ing misinformation and scaremonger-ing via a complicit press. They’ve had their say, it’s our turn now.

“The RWSS is a once-in-a-lifetime opportunity for the whole province. Today’s turnout indicates there’s over-whelming support for this project.”

Apart from one loud shout of bull***t during the speeches, no opponent was obviously dissenting.

Rural News spoke to Amanda Fraser, CHB Harvesting, which grows contract potatoes. She says, “We currently irri-gate and would love the opportunity to grow more. We will definitely tap into the RWSS.”

Phil King, a farmer who for 40 years has irrigated his cropping and finishing property, says “water storage here is a no-brainer.”

VIVIENNE HALDANE

Farmers came with their tractors to join the protest.

@rural_news facebook.com/ruralnews

The rally through Waipukurau’s main street called for the project to go ahead.

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NEWS 13

Pioneer reaches for global markets

DAIRY FARMERS world-wide are upgrading their milking systems, and New Zealand technology is high on their shopping lists.

Waikato Milking Sys-tems, Hamilton, is install-ing 25 rotaries this year in its major markets US, Australia, UK and China

and has won contracts in Russia. WMS is also a leading supplier of milk-ing rotaries to local farm-ers; here the company will this year install about 75 rotaries.

WMS chief execu-tive Dean Bell says rotary technology has acceler-ated in the past few years “and we are a major player in this space so markets

have come towards us…. Over the years we have matured our relationships around the world and can now send rotaries to coun-tries we haven’t [serviced] in the past,” he told Rural News.

Despite its products being more expensive than competitors’, WMS enjoys the advantage of designing and manufacturing almost

everything; it has factories to make rotaries, stain-less steel components and associated automated technology.

Bell says this makes WMS unique. “Even our bigger competitors don’t have all these services in-house. So we are able to build a much higher-per-forming bespoke offer-ing…. We don’t just build a rotary platform then have someone design a milking machine to fit. We have all our design services inte-grated so when we design a new rotary platform we design a milking machine to fit.

“It’s a whole pack-age and I think we have been able to integrate a lot more technology and make it look very simple… and because of that have

better reliability and lower cost of long term owner-ship.”

In China WMS is sup-plying large milking sys-tems to two of the biggest dairy cooperatives – Mengniu Dairy and Bright Dairy – in partnership with global herd manage-ment experts Afimilk. Two of the milking systems, in Jiangsu Province, north of Shanghai, are counter-rotating 80-bail rotaries set up next to each other to milk 7500 cows three times a day.

“These twin 80-bail rotaries are pretty rare worldwide but are a clear indication of the increas-ing scale of dairy farming in China,” Bell says. “They are impressive to watch in action and their perfor-mance is exceeding cus-tomers’ expectations.”

In Russia, it has sup-plied a rotary milk-ing system to Voronezh, 500km south of Moscow. Russia has an expand-ing dairy market and vast tracts of land available for dairying development. Its

dairy farmers are seek-ing technology that will help them milk efficiently and cost-effectively – a Waikato Milking Systems strength.

The company recently won a tender to supply 15 large rotaries to Russia; the first one has been shipped. To install them two teams are sent from New Zealand, the first working with the local dealer to install the plat-form and the second team arriving later to install the milking machine.

SUDESH KISSUN

[email protected]

DEMAND FOR rotary milking machines will remain high despite volatility in the dairy industry, says Dean Bell. A rotary milking machine is a long term invest-ment for its owner.

He agrees that when milk price softens, farmers are reluctant to spend. But this is a constant in the business, he says, and though “it will not change demand for rotaries, it will mean there

won’t be a linear supply”.Bell says farmers are optimistic

because of the $7/kgMS opening fore-cast announced by Fonterra.

WMS installed a record 100 rota-ries locally in 2008, the first year of the global financial crisis. It will install 75 this year.

But Bell notes farmers are now much more measured in their spending.

Demands remains high

Waikato Milking Systems chief executive Dean Bell (left) and chairman John Anderson.

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NEWS 15‘Don’t ignore massive US meat market’

THE US is one of the world’s strongest markets for meat in terms of price and it faces a tight supply this year, says a vis-iting US expert.

While urging New Zealand to keep developing trade with emerging mar-kets, the New York-based head of Rabobank’s US food and agribusiness research division, Bill Cordingley, warns against ignoring traditional markets such as the US.

“We expect overall meat supply to be flat-to-lower on the basis of rebuild-ing in the cattle herd, a PEDV epidemic in the hog industry and challenges with bird flu in Mexico,” he says.

“Whilst growth is continuing in the US, with a slow but steady recovery in the economy, production is not growing

at all and we are seeing record prices for cattle, hogs and poultry.

“So the demand for imports from New Zealand to satisfy that tightness in the market is going to drive the market this year. Losing focus on the US, which is the largest meat or beef importer in the world, would be a mistake.”

Cordingley acknowledged to Rural News that direct exports to China, particularly beef, have “exploded” in the last 18 months. “First through the door has been New Zealand with great access, the first in the world to the high-est growth market.

“That’s a testament to a range of qualities New Zealand has in terms of its disease status, the quality of its product, the export orientation of the industry, and the long term strategy of bringing down trade barriers and open-ing up good-perspective trade markets

even before they appeared to offer that sort of opportunity.”

Positioning New Zealand for longer term success has been a critical ele-

ment of this. “Free trade agreements with countries that matter in agricul-ture gives New Zealand a head start relative to the competition. That said, a

place like China has enormous demand and New Zealand can’t meet all the demand.”

Australia and Uruguay also have access and, with New Zealand, the three countries are getting the lion’s share of that market but will eventu-ally face more competition.

Putting too many eggs in one basket can be a pitfall, Cordingley says. The search for new market opportunity and the hard work that goes into those markets should not stop. New Zealand should keep looking at emerging mar-kets such as Africa, the Middle East or South East Asia. “You should keep developing those because they will be needed over time.”

Poultry is first up for new consum-ers coming into protein from a grain

based diet. It introduces con-sumers to animal protein and creates a demand for this across the market. By 2020 poultry will be the world’s most-consumed meat. This is competition for red meat, but New Zealand is well placed for the higher end of the market.

“New Zealand with its low cost, highly productive grass based system has a strong opportunity to be in those markets at the higher end. To be in the higher end you’ve got to take care of dis-ease status at a national level but also brand and positioning of the product as a premium item. New Zealand has done well, but will need to continue to focus on those niches in all those emerging markets as they continue to look at higher quality imported product.”

Cordingley was speaking last week at Rabobank seminars nationwide on ‘Raising the steaks – what’s driving the global protein industry?’

TELLING THE story is critical to reaching the high end of the market and ‘Brand New Zealand’ is a critical part of that, says Cordingley.

But health and quality also top the list.

“If you look at some of the issues the animal protein industry has had with disease, and even in the dairy industry with contamination and tainting of products, you understand quickly that consumers are highly sensitive to food safety and percep-tions – not even the reality, but the perception of high quality food safety.

“The real challenge here is for New Zealand to tell the story of clean and green, premium, high quality safe meat positioned for the emerging consumers of the developing world and the developed world.

‘New Zealand has a strong story to tell and will be given an opportunity in the world because of it. Many other players don’t have such a strong track record.

“Quarantine is also critical, so are herd and flock management, traceability and the ability to tell consumers about your product from

a marketing point of view.”Cordingley says the message

from Rabobank is that New Zealand has great opportunity but it will take ongoing work and tapping into and following what’s going on in markets around the world.

“Access is critical: wherever there are barriers New Zealand should continue to bring those down.

“You should also work on the product, making sure it’s posi-tioned and branded as meeting consumers’ needs in those emerging markets.”

Stay on message about premium quality

PAM TIPA

[email protected]

New Zealand’s pasture-based system positions our meat exports well for the higher end of the market, says Bill Cordingley (inset).

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DAIRY FARMERS are growing more sophisti-cated in their business

management practices, says Westpac’s general

manager corporate and institutional, Karen

Silk.After eight years

in Australia she now has a new role at the bank, includ-

ing agribusiness, where farmers need to increase their skills, she says. Ser-vice providers such as banks are focused on this and will help build farm-ers’ capabilities.

Silk has also noticed that “the trend that started ten-twelve years ago towards multiple farm ownership – almost a cor-porate model – has picked up pace,” she told Rural News.

“I saw this trend in the early-mid 2000s. This has picked up in pace and it won’t stop because of the need for increasing pro-ductivity which you get through scale.”

The drop in the Fon-terra payout to about $7.00/kgMS should not present any problems to the majority of farmers, she says.

“We’re picking $7.10/kgMS, still a substantial

payout, so we’re not picking that any real issues will come out the back end of this. With average farm costs, even if you’re running at $4 to $4.50/kgMS there is still a substantial surplus sitting in between the payout number and the net farm input costs.”

Silk comments that though some dairy farm-ers are highly geared, that is their choice and they

16 NEWS

Banker sees more business-savvy corporate dairying

PETER BURKE

[email protected]

can reduce debt by selling assets or with new forms of equity.

On borrowing, Silk says the bank chiefly wants to know a farmer’s ability to make a profit.

And he must be able to manage within new environmental limits, by “quality management”. “It doesn’t matter what business we are lending to, quality of management… and compliance with environmental regulation are fundamental to our understanding of the viability of that business.”

On China, Silk says there is no doubt that demand coming out of there has the potential to create concentration risk.

“The key thing to understand is what’s driv-ing that demand and how sustainable is that posi-tion. New Zealand is not unique; we will see increasing competition from other [countries] in that market…. But with the rate of urbanisation in China and their focus on food safety, you’re not going to see demand diminish for New Zealand products.”

Silk says despite strong Chinese demand the Gov-ernment is right to look for new opportunities for FTAs to diversify our mar-kets.

Karen Silk, Westpac.

Strength / Quality / Performancewww.mcintosh.net.nz0800 622 276 Palmerston north

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NEWS 17

Fashion can ‘make wool cool again’

CHIC BOUTIQUES may be remote from wool-sheds, but head-turning images in fashion “reach urban people and will get the cash tool going in the end,” says a fashion writer and Wool Week organiser, Anna Caselberg.

A passionate supporter of wool and the Prince of Wales’ Campaign for Wool, Caselberg organised New Zealand’s first Wool Week by signing up brand partners in the trendy Auckland Britomart to highlight the wool in shop window collections.

Events like Wool Week, financed by Primary Wool Cooperative, turn people on to the fibre, then they start to notice its qualities in many wool products, she says.

“The rurals know about wool, they know it’s bril-liant, they all wear it. We make a lot of carpet. But there’s always icing on the cake, a platform to engage people. I see that as the arresting images we can make with fashion imag-ery.”

Caselberg thought Wool Week would be small this year – 18 shop windows at Britomart. But social media messag-ing, particularly out of Campaign for Wool’s cen-tral North Island base and through Primary Wool’s network, saw it fan out through the North Island. Then South Island people began contacting her with suggestions of inclusion, but she says she did not have time to get around everyone this year.

The week was preceded by the billboard ‘We’re loving wool”. With pho-tographer Sara Orme, she

wanted to open a conver-sation, “Why are they talk-ing about wool?”

“Because Wool Week was mobilised through-out the country it went beyond our expecta-tions,” says Caselberg. “I had imagined a very small event but it spread out, getting the message out to important people and important media.

“I think it gained more traction in a wool indus-try sense: fashion and the wool industry coming together. It established itself well in that sense. But I had imagined that would happen next year when I was able to bring on some brand partners who would help stage a bigger event with maybe fashion and the wool industry included.

“The fashion compo-nent is important to me because as a stylist I’ve been working with wool forever. I did Wool Board promotions for fashion in my first job as a stylist. Wool is dear to my heart.”

Her daughter Isabella was the face of fashion week on posters and her friends in their 20s have said they have noticed the advertising and billboards. So it was reaching the gen-eration she hoped will “make wool cool again”.

She believes Wool Week next year will be even bigger again. She wants to stimulate retail more next year to get people coming through the door asking for wool.

Campaign for Wool has introduced Wool Week events globally and essen-tially it is a retail event, she says. Rural towns could get engaged in their local shops, Campaign for Wool’s Wool in Schools will get the primary chil-

dren making wool arti-cles and there could be a design initiative for ter-tiary students.

“We want to do ‘yarn bombing’ as they do all around the world. Say it’s crocheting: they take a fire

hydrant or telephone box, and people wake up [to find] it’s covered in cro-chet. That throughout the rural towns in New Zea-land could be really cool.

“It’s engaging people, opening a conversation.”

PAM TIPA

[email protected]

On fire: fashion stylist Anna Caselberg holds a blow torch to Billy Black Woolman to show wool’s fire resistant qualities.

That’s what works out here.

FMG

0546


18 WORLD

Oz meat markets now on app for producers

AUSTRALIAN RED meat farmers have a new market information tool – a smart-phone app.

Developed by Meat & Live-stock Australia (MLA), it provides cattle, sheep and goat producers with live-

stock market information in one convenient location where they need it most.

The ‘MLA market informa-tion’ app enables producers to keep up with news and market intelligence in the beef, sheep and goat industries.

MLA collects and sends domestic and international market data relevant to the Australian livestock industry, which MLA chief economist Tim McRae says is a driving factor in the app’s creation.

“MLA is the largest sup-

plier of market informa-tion for the Australian cattle, sheep and goat industries. We provide reports on price indicators from 90 livestock markets, as well as market analysis services, forward projec-tions and detailed data on international trade flows,” says McRae.

“The app will place all these resources into the hands of producers. They can customise searches for market reports specific to region, detailing price, supply and quality and

buyer information.“Producers often don’t

have spare time to spend in front of a computer, so this app is designed for them to connect from wherever they are.”

Producers’ day-to-day business decisionmak-ing is in view, McRae says. “They can access national indicators, feeder cattle, slaughter levels, over-the-hooks, skins and wholesale meat markets and read market analysis of Aus-tralia’s key livestock and export meat markets.”

Study grants for SE Asian dairy leadersDAIRY AUSTRALIA is bringing up to 15 dairy leaders a year from South-East Asia to study production and manufacturing.

The scheme, which stems from a scholarship scheme with Japan and China, builds on fast-growing demand for Australian dairy produce in the region.

Dairy Australia’s group manager trade and strat-egy, Charlie McElhone, says Australia’s dairy exports to South-East Asia were worth $810 million in 2013 – 29% of its total dairy exports.

“Our goal with the Dairy Scholarship Program is to build deeper relationships in the Asean countries on the ground, create stronger personal links and help spread knowledge and understanding of Australia’s dairy value proposition,” he says.

“This is particularly important if we are to effec-tively counter the intense activity of export oriented competitors already engaged in the region.”

While Dairy Australia runs regular missions and seminars in the region to help its dairy industry capture business opportunities, in-market links and knowledge are crucial in the battle for niche markets.

“The scholarship programme for South-East Asia will be tailored to meet the region’s needs, with a rotating focus on different aspects of dairy practice each year, such as retail, bakery and ingredients,” says McElhone.

One or two scholarships will be available for Indo-nesia, Malaysia, Singapore, Thailand, Vietnam and Phil-ippines, and up to three additional scholarships will be shared among the remaining Asean member states Cambodia, Laos, Myanmar and Brunei.

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WORLD 19

Beef summit calls for plan to break spiralFARMING LEADERS in the UK say a downward spiral of farmgate prices of beef is causing serious damage to farmers’ confidence.

They want retailers, processors and caterers to take responsibility for the decisions they make and the impact those decisions have on the sustainability of the beef sector.

After a “presidential summit on

beef ”, heads of farmer organisations also called for promotion of British beef to the consumer by retailers.

NFU president Meurig Raymond says all involved are determined to work together to resolve the current issues facing the beef industry.

The deadweight price for all finished steers has fallen to $7.03/kg, 82c/kg less than this time a year ago, when it was

approaching a high in the wake of the scandal over horsemeat-contaminated products. And the liveweight price last month dropped to $3.51/kg, down 74c/kg in the same period.

But while farmgate prices have gone down, the cost of beef on supermarket shelves has been creeping up, cutting the farmers’ share from almost 60% in May 2013 to 51.3% in March this year.

There is also concern about rising beef imports, particularly from Poland.

Raymond urged processors to look at what can be achieved by making long term commitments to their suppliers.

“With a reduced beef supply forecast as we reach the end of the year, and with fewer cattle coming forward, there needs to be a change of attitude and a realisation that beef farmers have

no option but to work to a long term plan.

“It’s impossible to work to do that when everyone else is thinking in the short term. It is a cliché that we have used before, but the beef supply is not a tap that can be turned on and off at a moment’s notice.”

@rural_news

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UK sheepmeat prospects highUK SHEEP farmers are expecting a good season for domestically produced lamb, according to their industry-good organisation Eblex.

Favourable weather through the winter and spring lambing season have raised expectations, says sector director Nick Allen.

He says after the losses and bad weather of winter 2012 and spring 2013 made life difficult for sheep and beef farmers, the fortunes

for summer 2014 are in dra-matic contrast.

And the forecasts are for high quality lambs coming forward to supply qual-ity product to the market while offering good value for money for consumers, he adds.

‘’All the indicators [point to] a good lambing season for sheep farmers in terms of healthy lambs born,” says Allen. “The weather has been excel-lent for grass growth so we

can expect some of the best quality home-produced lamb seen on the shelves for years.

“Consumers should take the opportunity to buy a quality product and get exceptional value for money.”

Unlike their beef coun-terparts, sheep farmers expect good returns. Allen says the difficulties now seen in the beef market are not expected in the sheep trade because of the differ-

ent market dynamics. Importantly, producers

should market their lambs at the right time – when they hit the spec proces-sors are looking for, he says.

“We are a major player in the international trade of sheepmeat and there remains strong demand for our product at a time when other sheepmeat exporters are not at the peak of their production.

“This gives us plenty of opportunities to sell our

sheep meat. Consumers tell us they love lamb for its great taste and tenderness so we would expect to see continued robust demand domestically, and quality lamb available at a compet-itive price during the next few months.”

Lamb sales are up 9% on the past few years. Eblex has television advertising due to screen in Septem-ber. And an inexpensive Indian dish – keema – will encourage more adventur-

ous cooking, and will posi-tion lamb as the meat to go with spices.

Marketing projects in

key markets abroad, nota-bly France, are also helping to stimulate demand for UK lamb.

UK’s domestic sheepmeat production is looking up this season.

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MARKET SNAPSHOT LAMB MARKET TRENDSBEEF MARKET TRENDS


Play your part Record all your stock movements in the NAIT system

To find out more go to www.nait.co.nz | [email protected] | 0800 624 843

MatingFarm to farm Events Grazing Gypsy Day From a sale yard

A & PSHOW

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

BEEF PRICES

c/kgCWT Change Last Week

2 Wks Ago

Last Year

NI P2 Steer - 300kg n/c 4.70 4.70 4.35M2 Bull - 300kg n/c 4.60 4.60 4.30P2 Cow - 230kg n/c 3.90 3.90 3.55M Cow - 200kg n/c 3.75 3.75 3.45

Local Trade - 230kg +5 4.75 4.70 4.30SI P2 Steer - 300kg +5 4.25 4.20 4.00

M2 Bull - 300kg n/c 4.10 4.10 3.90P2 Cow - 230kg n/c 3.02 3.02 3.10M Cow - 200kg n/c 2.97 2.97 2.80

Local Trade - 230kg +5 4.40 4.35 4.05

Slaughter

Export Market DemandChange Last Week 2 Wks

Ago Last Year 5yr Ave

95CL US$/lb +5 2.27 2.22 1.90 1.76NZ$/kg +10 5.75 5.65 5.39 5.20

Procurement IndicatorChange 2Wks Ago 3 Wks


% Returned NI +0% 80.0% 79.6% 79.76% 78.6%% Returned SI -0% 71.3% 71.7% 71.8% 71.6%

LAMB PRICES

c/kgCWTChange Last

Week2 Wks

AgoLast Year

NI Lamb YM - 13.5kg +5 6.01 5.96 5.03PM - 16.0kg +5 6.03 5.98 5.05PX - 19.0kg +5 6.05 6.00 5.07PH - 22.0kg +5 6.06 6.01 5.08

Mutton MX1 - 21kg n/c 3.65 3.65 2.90SI Lamb YM - 13.5kg n/c 5.88 5.88 4.86

PM - 16.0kg n/c 5.88 5.88 4.88PX - 19.0kg n/c 5.88 5.88 4.90PH - 22.0kg n/c 5.88 5.88 4.91

Mutton MX1 - 21kg n/c 3.18 3.18 2.80

Slaughter

Export Market DemandChange Last

Week2 Wks


UK Leg £/lb n/c 2.18 2.18 1.82 1.84NZ$/kg n/c 9.40 9.40 8.02 8.55

Procurement IndicatorChange 2Wks

Ago3 Wks


% Returned NI +1% 78.8% 77.9% 72.8% 73.0%% Returned SI +1% 76.2% 75.3% 69.3% 74.2%

Venison PricesChange Last

Week2 Wks


NI Stag - 60kg n/c 6.15 6.15 6.30 7.29SI Stag - 60kg n/c 6.20 6.20 6.52 7.57

NEWS PRICE WATCH


Play your part Record all your stock movements in the NAIT system

To find out more go to www.nait.co.nz | [email protected] | 0800 624 843

MatingFarm to farm Events Grazing Gypsy Day From a sale yard

A & PSHOW

BEEF

Cattle prices lift against a stronger NZD

With cattle slaughter numbers sharply down in recent weeks, reduced shifts haven’t been enough to hold back procurement competition and the subsequent climb of kill prices. In the NI export bull prices were $4.60/kg last week, and export steer $4.70/kg. Cow prices are around $3.80/kg for bits and pieces and $4.00/kg plus for big lines. While prices in the SI remain considerably below the NI, recent weeks have seen lifts and procurement pressure building. Export bull was earning $4.10/kg last week and steer $4.25/kg. Processors in both islands are active in the saleyards hunting down anything killable. Local trade operators are also scrambling to keep their plants fill and are expected to increase prices going into next week. Even given the drop off in slaughter numbers, the continued climb of kill prices is surprising in light of the strength of the NZD, and with the NZD expected to remain strong and cattle availability expected to remain limited for the remainder of the season it will be interesting to watch how processors to choose to play out the final months.

US market rises – but limited NZ product to sell

With little product coming out of NZ, almost ironically the US market has jumped significantly in recent weeks.With an 8c/lb lift in 90CL and a 5c/lb lift in 95CL, prices are well above historical levels, especially considering prices seasonally trend downwards at this time of year. The firm prices were driven by a lifting domestic 90CL prices and significantly lower offerings from Australia as they wait for NZ product to seasonally decline before they re-enter the market. There is a degree of wariness around the sharp rise, but with inventories low, not much meat available on the spot market, and continuing low domestic slaughter, imported prices could find support at this level.

LAMB

Lamb schedules edge higher

Export prices for lamb are working their way up unobtrusively as processors seek to keep plants full. In the NI $6.10-$6.15/kg gross is the range with a few achieving above this depending on contracts and numbers supplied etc. The gap is slowly closing between NI and SI schedules as $5.90/kg gross in the SI was the average last week, but $6.00/kg achievable. The promise of firmer pricing towards the end of the season may see tighter supplies in the short term, as those that are in position to do so, hang on to lambs until then.

Demand for store lambs heating up in NI

Widespread rain across the NI and mild temps have seen store lamb prices continue to firm in the NI last week, and strong sales at auction have helped fuel the strengthening. Paddock prices were largely between $2.75-$2.85/kg for 30-32kg lines, with some variation between whether ewe lines are discounted or not. Lines under 30kg were more likely to make around $2.90/kg last week, although buyers still prefer the shorter term lamb. Prices in the yards have been around 15-25cpk above those in the paddocks, with many easily breaking the $3.00/kg mark. Supply and demand appears well balanced at present.In the SI the wet conditions underfoot have kept the store lamb quiet in both the saleyards and in paddock. 30kg lines are around the $2.75/kg mark, irrespective of sex.

DAIRY

Dairy prices look more promising for Q3

Fonterra reported that its milk collection for the 2013/14 season NZ wide was 8.3% above last year; 8.9% up in the NI and 7.3% up in the SI. Whole milk powder prices increased 2.4% at the most recent GlobalDairyTrade event, however overall trading volumes remain light. Third quarter supplies are being negotiated and are promising firmer pricing going forward. Many in the whole milk powder market are awaiting renewed buying interest from China, however supplies in China appear adequate at present. Demand for butter in the third quarter is firm from Russia and the Middle East as there are concerns around availability from the EU and US. It is believed butter prices will only move upwards from this point.

WOOL PRICE WATCH DAIRY PRICE WATCH

Indicators in NZ$ Change 12-Jun 05-Jun Last Year Indicators in NZ$/T Change Last 2

WksPrev. 2

WksLast Year

Coarse Xbred Indic. -2 5.30 5.32 4.46 Butter -21 4540 4561 5277

Fine Xbred Indicator n/c 5.63 5.63 5.10 Skim Milk Powder -34 4483 4517 5631

Lamb Indicator -8 5.33 5.41 5.07 Whole Milk Powder -51 4569 4620 6113

Mid Micron Indic. - - - 8.56 Cheddar -128 5345 5473 5663

Overseas Price Indicators Overseas Price Indicators

Indicators in US$/kg Change 12-Jun 05-Jun Last Year Indicators in US$/T Change Last 2

WksPrev. 2

WksLast Year

Coarse Xbred Indicator +8 4.56 4.48 3.52 Butter +75 3950 3875 4100Fine Xbred Indicator +11 4.85 4.74 4.03 Skim Milk Powder +63 3900 3838 4375Lamb Indicator +3 4.59 4.56 4.00 Whole Milk Powder +50 3975 3925 4750Mid Micron Indicator - - - 6.76 Cheddar n/c 4650 4650 4400

CURRENCY WATCH

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

US dollar 0.870 0.866 0.857 0.777Euro 0.640 0.639 0.628 0.587UK pound 0.511 0.511 0.508 0.501Aus dollar 0.926 0.920 0.927 0.844Japan yen 88.79 88.20 87.24 75.42

Euro

Mar Apr May Jun Jul Aug

UK Pound

US Dollar


22 AGRIBUSINESS

Avoid paying the taxman’s interest

DAIRY FARMERS need to act now to avoid having Inland Revenue charge high interest on tax owed for the season, says Justin Geddes, agribusiness principal at Crowe Horwath’s Dunedin office.

“With the dairy payout high and stock prices better than last year, there is a good chance farmers will owe tax this season,” says Geddes.

Use-of-money interest is charged at 8.4% from the first provisional tax date until the time the year-end tax is paid, meaning that even though the due date for final payment of the tax will be April next year, IRD will be charging interest on the amount owed in the mean-time. Use-of-money interest is like an overdraft inter-est rate, which the IRD applies where the year-end tax is higher than the provisional tax that has been paid.

That means dairy farmers with a May end of year could be charged interest for 17 months from Octo-ber 28, 2013 until April 7, 2015, and sheep/beef farm-ers, who usually have a June end of year, interest for 16 months.

To minimise interest payments to the IRD, says Geddes, farmers need to keep a good track of how they are performing. If in June or July it looks like the profit will be up on last year, he recommends farmers get their accountant or agribusiness advisor to esti-mate tax.

“If you’ve got cash in the bank earning about 3% in interest, it makes far more sense to pay your tax early to save yourself being charged 8.4% by the IRD.

Wool harvesters earn while they learnPRIMARY ITO has run its first shear-ing workshop, at Brownrigg Agriculture Farm, Hawke’s Bay, following its return to wool industry training.

“It was a full-on day of training [including] gear set-up, a grinding ses-sion and shearing lambs,” says wool train-ing adviser Aria Mullins.

The 17 trainees hailed from Hawke’s Bay region. Three instructors gave the

trainees a good spread of expertise, Mul-lins says.

“They loved it and learnt heaps. They managed to cover all the basics in one day, without everyone leaving with that ‘infor-mation overload’ feeling you can some-times get after a course.”

Primary ITO is now training people who work in wool harvesting, bringing learning to the woolshed with this new on-the-job training model.

On-the-job training – practical, hands-on and done in the workplace –

fits around the work day and the work, Mullins says. Workers earn while they

learn rather than taking time off to attend classes.

Existing off-the-job training will remain or the two models can be combined for flexibility. So

shearers, wool handlers and press-ers can learn on-the-job, off-the-job

or a blend of the two.Management training is also

offered to help shearing contractors develop their business expertise.

www.primaryito.ac.nz .

ABOUT PRIMARY ITO❱❱ Primary ITO provides NZQA-endorsed

training and qualifications for people working in agriculture, horticulture, equine, water, sports turf and food processing.

❱❱ The ITO provides leadership in educa-tion and training, develops national quali-fications, maintains national standards and supports industry trainees and employers.

❱❱ Primary ITO training is subsidised by industry and government.

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24 AGRIBUSINESS

Rural services co now 100% NZ-ownedELDERS RURAL Ser-vices NZ is now 100% NZ-owned following its purchase by the Ashburton family-owned agribusi-ness company Carr Group, effective August 1.

Carr Group bought a 50% holding from Elders Australia Ltd and 50% owned by Sredle Rural Services. The prices were

not disclosed.Elders Australia had

been pressured by its Aus-tralian banking syndicate to quit its non-core assets in New Zealand. It sig-nalled its sell intention in its half-year result released in May.

Sredle Rural Services, of which Elders NZ man-aging director Stu Chap-

man is a shareholder, has Auckland businessman Eric Spencer as its biggest investor.

Chapman told Rural News he was sorry Sredle was selling its stake, but the Carr Group’s full own-ership would be good for the business long-term. “It means certainty and con-tinuity for the business

as there would likely have been a sale of our stake at some stage down the track.”

Carr Group managing director Craig Carr says Chapman will continue to lead Elders NZ; there are no immediate plans to change either business operation.

“It will be business as

Carr Group family and directors (from left), Stacey McKerchar (nee Carr), Craig Carr, Ryan Carr, Paul Tocker, James Carr, Glenys Carr, Ant Grayson, Emmet Hobbs and Greg Carr.

ELDERS NZ, primarily a livestock and wool business,

has 12 branches nationwide.

In recent times the company has trimmed its

farm store retail business and expanded its online

platform www.e-farmsupply.co.nz

It owns 50% of Elders Primary Wool (EPW),

a joint venture with Primary Wool Co-operative.

EPW’s flagship activity is the Just Shorn wool carpet

promotion. This is mainly US-based and does not

have a high profile in New Zealand despite all the

wool being produced and processed in this country.

Chapman is confident this will change: the brand

is now launching in Australia in 46 retail stores and

plans are afoot to launch it in New Zealand.

He says carpet sales in the US, aimed at affluent

consumers through about 500 stores nationwide,

had improved off a low base, with 10-15% monthly

growth each month recently. “May was our best

month ever and all our hard work is starting to pay

off.”

Chapman says the ‘New Zealand story’

combined with wool’s natural attributes are making

an impact in the US market. And EPW is steadily

picking up market share in New Zealand.

Meanwhile, Elders recently launched an advisory

division – Elders Advisory Services. “We have been

speaking to farmers about their concerns, needs

and how an advisory service could work with them,”

Chapman explains.

The advisory service is underway in Waikato and

Taranaki. Chapman believes the new ownership will

help Elders to expand this part of the business.

Elders also has a farm and rural business insur-

ance division.

Wool business prospects good

Stu Chapman

It was 2010, we’d had a high number of empty cows for several years, and we couldn’t understand what the problem was. We just couldn’t make headway. It was pretty distressing. So we looked

at our production, we looked at the fertility of the cows, and we came to the conclusion that we should do blood tests and see what the problem was.

BVD was one of the things in a mix of things it could’ve been. I didn’t know a great deal about it at that time, or how prevalent it was in the area. It was actually my vet who put me on to it and did the testing. We tested 10 or 15 empty cows and… the results came back positive with BVD.

I took it all in my stride; I was just relieved to know what the problem was. The vet recommended that we vaccinate all the cows, but I considered that too

big a hurdle, so in the fi rst year I just vaccinated half the herd, and from then on I’ve vaccinated all the heifers going in.

We used the Bovilis vaccination, and it’s made a real difference. Because we vaccinated at a time when we had the cattle in the yards, we just fi tted it in with our normal programme. I’ve recently had more tests done and the prevalence of BVD in the herd is a lot lower, and we came up with a fresh set of recommendations − to blood test and vaccinate all the heifers going in to make sure no PIs (persistently infected animals) get into the herd.

Now that we know what the problem is and we’re dealing with it, things are looking up. With better feeding levels and better management with the Bovilis vaccine, I reckon we’ll get on top of the BVD problem.

David Williams Beef Farmer, Aorangi

“It was my vet who put me on to it and did the testing. We tested 10 or 15 empty cows and… the results came back positive with BVD.”

AVAILABLE ONLY UNDER VETERINARY AUTHORISATION ®Registered trademark. MSD Animal Health. msd-animal-health.co.nz Phone: 0800 800 543 NZ/BOV/0514/0001

“ I was just relieved to know what the problem was.”

Manage BVD. Vaccinate with Bovilis®

“ It was so frustrating. We didn’t know what the heck was going on − why did we have so many empties?”

David Williams

ELE-

0140

1-RN


AGRIBUSINESS 25

Container collection hits 30,000kgAGRECOVERY RURAL recycling container collections hit 30,000kg during May, the largest monthly volume since the scheme began in 2007.

Marketing manager Duncan Scotland attributes the rise to a big lift in new members, collection volumes and website interest during its annual promotion, a $5000 prize draw.

“The 30,000kg equates to a 20ft shipping container filled with recycled plastic every day of the month, so it was a lot of containers diverted from burning or dumping.”

Scotland says farmers and growers are responding to the changing farming environment, and to such regulatory changes as the ban on burning of farm plastics introduced by Environment Canterbury in January.

“In the first four months after the ban came into force, we saw recycled container collections in the Canterbury region increase by 70%, on the same period last year.

“It’s not all consumer pressure and burning bans though. Farmers and growers, like anyone, find it hard to resist a prize draw. So, over the last couple of years we’ve held a recycling promotion each February and March which rewards ten recyclers for their green efforts.”

During the two reward months, recycling volumes increased 12% on the same promotional period in 2013, while the joining rate for new members doubled.

“We also saw a huge lift in visitors to the Agrecovery website; this… usually translates into actually recycling activity.”

Agrecovery Foundation chair Graeme Peters says the scheme is chiefly interested in increasing the amount of plastic removed from rural areas.

Sixty companies support Agrecovery through paying a levy on plastic containers.

The empty triple-rinsed containers are recycled at plants in Auckland and Christchurch, most of the plastic being used to make underground cable covers.

Agrecovery says the 190 tonnes of containers collected so far this financial year equates to a 15cm wide cable cover reaching from Auckland to Invercargill and back. The amount of energy saved using this volume of recycled plastic versus new plastic equates to 323,000L of petrol.

Rural services co now 100% NZ-ownedusual. As we settle in, we’ll look for synergies between both businesses to ensure we achieve efficiencies and grow the business.”

Carr says the oppor-tunity to return Elders to Kiwi ownership was excit-ing for both companies.

“Bringing together two strong agribusinesses under one New Zealand

entity will not only expand our footprint within New Zealand, but also across the global marketplace where we currently oper-ate and export to more than 40 countries.”

Carr says it is a “good day” for New Zealand agri-culture: the two compa-nies share similar ethics and a desire to improve

farmer profitability. Retaining Chapman as managing director was critical, he says.

Carr says the Elders NZ acquisition will take the group’s annual revenues to NZ$300 million.

“The investment by the Carr Group is a strong endorsement of the Elders business in New Zealand,”

says Chapman. “Clients… will con-

tinue to receive a high level of service, as we focus on supporting their day-to-day needs.”

Chapman agrees the Carr Group purchase and its strong South Island presence is likely to be good for the expansion of Elders’ business in the

region, especially live-stock.

“The 100% New Zea-land-owned story is also likely go down well with farmers because there is concern in the rural sector about foreign ownership of land and businesses.”

No change is planned to the Elders name in the short term.

Carr Group, Ashburton runs various New Zealand agri-business and subsidiary companies. The family owned firm began 40 years ago in Ashburton

Founders Greg and Glenys Carr are still active in the busi-ness with their three sons and daughter. Craig Carr is managing director

Carr Group businesses include Claas Harvest Centre Canterbury, Winslow Contracting Ltd, Small-bone Holden Ashburton and Lely Centre Ashburton

Canterbury Seed Company is owned by Winslow Ltd

Carr Group employs 400 people in New Zealand, Australia, India, Africa and the Middle East

Elders NZ acquisition will take the combined group’s annual revenues to NZ$300 million.

Who is Carr Group?

Craig Carr

It was 2010, we’d had a high number of empty cows for several years, and we couldn’t understand what the problem was. We just couldn’t make headway. It was pretty distressing. So we looked

at our production, we looked at the fertility of the cows, and we came to the conclusion that we should do blood tests and see what the problem was.

BVD was one of the things in a mix of things it could’ve been. I didn’t know a great deal about it at that time, or how prevalent it was in the area. It was actually my vet who put me on to it and did the testing. We tested 10 or 15 empty cows and… the results came back positive with BVD.

I took it all in my stride; I was just relieved to know what the problem was. The vet recommended that we vaccinate all the cows, but I considered that too

big a hurdle, so in the fi rst year I just vaccinated half the herd, and from then on I’ve vaccinated all the heifers going in.

We used the Bovilis vaccination, and it’s made a real difference. Because we vaccinated at a time when we had the cattle in the yards, we just fi tted it in with our normal programme. I’ve recently had more tests done and the prevalence of BVD in the herd is a lot lower, and we came up with a fresh set of recommendations − to blood test and vaccinate all the heifers going in to make sure no PIs (persistently infected animals) get into the herd.

Now that we know what the problem is and we’re dealing with it, things are looking up. With better feeding levels and better management with the Bovilis vaccine, I reckon we’ll get on top of the BVD problem.

David Williams Beef Farmer, Aorangi

“It was my vet who put me on to it and did the testing. We tested 10 or 15 empty cows and… the results came back positive with BVD.”

AVAILABLE ONLY UNDER VETERINARY AUTHORISATION ®Registered trademark. MSD Animal Health. msd-animal-health.co.nz Phone: 0800 800 543 NZ/BOV/0514/0001

“ I was just relieved to know what the problem was.”

Manage BVD. Vaccinate with Bovilis®

“ It was so frustrating. We didn’t know what the heck was going on − why did we have so many empties?”

David Williams

ELE-

0140

1-RN


26 OPINION

THE HOUNDWant to share your opinion or

gossip with the Hound? Send your emails to:

[email protected]

EDNAEDITORIAL

Dead duckYOUR OLD mate under-stands the meat sector ginger group’s plans for an industry summit to discuss reform have come to a dead end. MIE in March called for an urgent summit. But – surprise, surprise – the group’s chair, John McCarthy, says it soon became apparent it was ‘’going nowhere’’. McCarthy and his MIE mates would prob-ably have more success achieving peace in the Middle East than getting agreement from the meat sector on reforms. But good luck to them anyway.

Really?SPEAKING OF useless ideas, the Hound notes that the Labour Party’s big idea for the primary sector, should it win the Treasury benches after the general election, will be to form an advisory board. Labour’s primary industries spokesman Damien O’Connor says his party would set up an advisory group to make recommenda-tions directly to minis-ters, as it seeks to take a greater leadership role in the primary sector. Sorry Damien, but the last thing the farming sector needs is another layer of bureau-cracy.

CarefulACCORDING TO Ministry of Health figures, details on 200,000 hospital discharges nation-wide from July 2011 to June 2012 show people suffering all sorts of misfortune. In one year six people were hospi-talised after choking or suffocating in their beds, and 200 had nasty run-ins with their lawn-mowers. The Hound recommends readers take care out there to avoid being mowed down by an out-of-control lawn-mower.

Top appleTHEY SAY an apple a day keeps the doctor away, so the Hound reckons plenty of medical profes-sionals will be crying into their lattes at the news that New Zealanders have voted the apple as their favourite winter fruit. According to a recent ‘5+ A Day’ survey, about 25% of Kiwis picked apples, followed by avocado (15%) then mandarins (14 %). The charitable trust set up to promote fruit and vege-table consumption also cites oranges, kiwifruit, Nashi and other pears, mandarins, persimmon, parsnips, leeks, broccoli, kumara and cauliflower as good winter fare.

Sensitive soulsYOUR CANINE crusader, who’s been around the traps a wee while, has over the years got used to seeing ruffled feathers at various organisations. But he reckons the sensitivity stakes at OSPRI NZ must right now be at record highs. Some of these supposed guardians against TB are unhappy this fine publication dares to run letters from people criticising OSPRI NZ – more often than not vehe-ment anti-1080 crusaders questioning the ‘guard-ian’s’ methods and use of the poison.

BRUCE WILLS will shortly step down as Feder-ated Farmers president after the normal three years in the job. Let’s be frank, he’s achieved a helluvva lot.

He was elected, with his board, to change the image of the federation. Many members had grown weary of the ‘out there’, somewhat confrontational style of his two predecessors. They wanted change and quite deliberately at Rotorua three years ago a group of them engi-neered this: Bruce Wills, William Rolleston and Anders Crofoot in particular were central to that movement for change.

Wills, the banker turned farmer and now farmer politician, was given a mandate to make Feds mainstream and win back credibility lost with the public, politicians and others in agri-business. This was no easy task: Wills and his team had to walk a tightrope – being seen to advocate strongly on key issues for members, but not to get into unseemly public debates in the media with groups that didn’t share farm-ers vision for the future. Wills came across as a person of reason and willingness to listen and get sensible outcomes.

Wills has done all that was asked of him and more. In three years, Federated Farmers has again become recognised as a well led, credible lobby group capable of significant gains by rea-soned argument. The task is far from complete: only in the last few weeks has the impact of the urban-rural gap been highlighted, and without Wills’ efforts it would have been much worse. There is a lot of ground to regain, but the effort is rightly directed and will likely carry on this way under Rolleston’s stewardship.

In 40 years Federated Farmers has not had a president better than Bruce Wills: he ranks with Sir Peter Elworthy, Brian Chamberlain and the late Alistair Polson. The Federation and New Zealand owe a lot to Wills, a leader worthy of significant recognition.

Wills’ work ranks with the best

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“No – we’re Presbyterian!”


OPINION 27

Farmers ‘heavy lifting’ for all in Hockey budgetIF YOU could invest $1 for an $11 return, would you do so, or would you save the $1?

What if you could spend $1 and receive $12 worth of work free of charge? Would you stump up the cash or keep it in your pocket?

These two questions may seem silly but unfor-tunately they have been posed by our Federal Government. Even more unfortunate for the farm-ing sector has been the answer.

The cuts proposed in May’s Federal Govern-ment’s budget make little sense and will harm Aus-tralian agriculture and regional communities. They include at least $100 million in R&D and $483 million slashed from the Landcare budget. These decisions defy logic.

The Government

wheeled out clichés and platitudes (“we’re all car-rying the load”, “age of entitlement is over”) but cutting funding to pro-grammes that repay the spending many times over is nonsensical.

Agriculture was named one of the pillars in this Government’s five-pil-lar economy, yet cuts to R&D will clearly affect its competitiveness. Agricul-ture needs R&D, which has been reinforced by gov-ernment reports such as the Productivity Commis-sion, the Asian Century report and the National Food Plan.

Despite allocation of $100m to agriculture-spe-cific R&D over the next four years (designed to get a positive headline), it has cut $146.8m from the CSIRO, which will result in 500 job losses.

Funding for the co-

operative research cen-tres programme will be cut by $80 million (20% of the overall programme budget) and $11.5 million of funding was slashed from the Rural Industries Research and Develop-ment Corporation.

The Government in February promised $100m more over four years for agricultural R&D. It didn’t say it would slash other research bodies to fund it.

In February, Fed-eral Agriculture Minis-ter Barnaby Joyce said the $100m was “very impor-

tant, because research and development goes to the crux of how we expand our industry”.

He said $11 was returned for every $1 spent in R&D. He clearly under-stands the value, which is why Treasurer Joe Hock-ey’s decision to kill the goose that lays the golden eggs is so confounding.

One of the most dis-appointing decisions for many farmers is $483 mil-lion cuts in funding to Landcare nationally over the next five years.

In return, the Govern-ment is spending $525 mil-lion on the Green Army, its new model for work for unemployed youth aged 17-24, at below the mini-mum wage. The Govern-

ment claims the Green Army will be “Australia’s largest ever environmen-tal workforce, building to 15,000 participants by 2018-19”.

Landcare members now number at least 500,000, half of them farmers. For every dollar the government spends on Landcare, the community provides at least $2.60 in cash and up to $12 for vol-

untary labour and mate-rials.

Landcare was essentially a means of support for committed volunteers through

providing seed grants and funding co-ordinators. Now that financial support has been slashed, instead used on a work-for-benefits scheme that will prop up unemployment figures.

Minimum-wage work-ers work their hours and head home. Volunteers will continue to give their time and energy for years – if they are supported and encouraged.

We’ll leave the last word to the president of the Victorian Landcare Council, Terry Hubbard: “The expectation is that the farming community should do all the heavy lifting for the benefit of the community.

“There is always a desire to increase and improve food production, there is always a desire to improve the natural envi-ronment; those things are enjoyed by all people yet the farming community’s expected to carry it.”

The cuts proposed last month in the Federal Government’s budget make little sense.

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28 OPINIONRAPS NEED PROTECTINGTHE ARTICLE ‘It’s a RAP- or is it?’ (Rural News, June 27) needs clari-fication.

RAPS are recommended areas for protection and until DOC sits down and negotiates with the landowners, these areas have no legal status. Following negotiations three options emerge:

• The area is registered as PNA (protected natural area) and effectively a reserve

• The landowner can choose to register the site with the QEII Trust

• Both parties walk away and the RAP languishes.

The process was promoted in the 1980s as a voluntary mecha-nism between landowners and DOC to protect significant vege-tation within the newly estab-lished ecological districts of which there are 17 across New Zealand.

The emphasis at the time was on voluntary access, volun-tary discussions and voluntary outcomes. Unfortunately for pastoral leases they had no rights as the landowner was the Crown, administered by Lands and Survey Department.

I recall at the time we in Feder-ated Farmers advised farmers to use the QEII Trust rather than DOC. At the time (1980s) the process seemed straightfor-

ward, as RAP has no legal protec-tion and cannot be registered in a district plan unless the council has a signed agreement with the landowner.

This process has broken down, not because of farmers striving to increase production but because of the poor attitude of DOC and NGOs such as Forest & Bird towards farmers over the past 40 years.John Rowley Turning poo

into pasture: never say never

WITH REGIONAL plans set to place more limits on nutrients like nitrogen, an innovation on its way to being commercialised shows how science can vastly improve agriculture’s environmental footprint.

We seem to be locked into a high/low debate over farming and the environment. To Federated Farmers that seems a linear way of looking at things because it denies the remarkable influence technology can and will play.

At the recent field days, at which I was a judge, one technology that took my eye was the PUER system, in development at The University of Waikato. This can loosely be described as an effluent treatment plant for dairy farm washdown. When you’ve got the herd await-ing milking you collect a heap of poo and urine. That’s cur-rently washed into storage ponds and later recycled back to pasture as liquid fertiliser. Though this may be done well, in many circumstances there’s no margin for error.

Unlike councils, farmers cannot blame bad outcomes on a mechanical breakdown, weather or even carelessness. Get it wrong and you’re talking Campbell Live, fines and possibly a criminal conviction.

What if, instead, you could treat that waste to a level where the liquids could be used again for stock water or for dairy washdown? The leftover solids could then be used to fertilise pasture.

The system I saw may not be the only one in develop-ment, though it is one of the first to break cover. But we are seriously risking the development of these technolo-gies if we race headlong into unrealistically hard nutrient limits. Do that and it means farmers won’t have the means or motivation to invest. The lack of investment means innovators won’t put the legwork in so we enter a vicious cycle. We also run the risk of strangling hundreds of little communities that rely on the dairy dollar.

If instead you’ve got nutrient indicators married to a realistic time horizon then you’re talking about a virtuous cycle. Every kilogram of nitrogen leaching to groundwa-ter is not only just bad for the environment, it’s like farm-ers chucking $2 coins into a rubbish bin.

Any innovation like this must be farm proven – this one is at an advanced pilot stage – and it will demand signifi-cant investment from us to implement. That the company behind PUER has been swamped since the field days shows how prepared farmers are to invest in things that will lower their farm environmental footprint

While this technology relates to just one aspect of our environmental footprint, it illustrates how others will eventually spread out from the milking platform and onto pasture.

By working with science we will get there so this system is merely the entrée. Yet it is one that could build on the great work farmers are doing in catchments like Rotorua. It is also a solid reason why you should never say never.• Willy Leferink is the outgoing chairman of Federated Farmers Dairy section.

WILLY LEFERINK

Willy Leferink


OPINION 29Sidelining ‘big brother’ gives scope for mediationWHETHER YOU’RE communist, socialist, democrat or anarchist, you’re going to have a strong opinion on what level of monitoring and access your gov-ernment has on your home and busi-ness.

I am not one to tolerate a police state, so I commend the Waikato Regional Council’s decision to cease helicopter surveillance of farms for monitoring and enforcement purposes, pending a review.

Orson Wells, in the film 1984, clev-erly encapsulates the feelings Waikato farmers endure in being constantly monitored by helicopter: ‘Big brother is watching you’. Whilst the intention of helicopter surveillance is under-standable the method leaves much to be desired.

Farmers have a great working rela-

tionship with the council and there is already a great deal of collaborative and independent work going on, both sides of the fence.

So whilst the helicopter mon-itoring may be more effective, it is detrimental to the positive and voluntary work already being done. No one likes to work with someone breathing over their shoulder and this is no different.

Farmers are already working hard and under an enormous pressure in meeting the new requirements, so I’m thankful the council has taken off this added pressure, a testament to the council’s constructive approach in working with the community to

improve the environment. Whilst moni-toring and compliance checks are a part of this, the eye in the sky does little for the bank of goodwill and readiness to work together. Why not instead use satellite imaging technology?

On-farm visits and check-ups are important in making sure farmers are complying, but the big-brother approach fails in respect of the ‘big picture’.

The council is also reviewing the way it enforces effluent compliance. I would like to see an accredited system so it’s not ad hoc – a system that has clear timeframes, guidelines and rules to follow.

There is no room for grey for farm-ers spending money on upgrades. We need assurance that the system and standards to be followed will be the same system and standards to be used down the line. We don’t want to shirk

our responsibilities, we just want clear rules with no room for interpretation.

We need a Waikato strategy inclusive of all stakeholders so we can address these issues. We are all in this together, no one or their needs is more impor-tant than the other, and we all need to

be present and heard.Federated Farmers Waikato suggests

forming a working party with the coun-cil to update the current rules so there is better clarity and definitions.• Chris Lewis is Federated Farmers Waikato provincial president.

CHRIS LEWIS

Chris LewisHelicopter flights over dairy farms by Waikato Regional Council staff are irking farmers.


HAVING ALL animals on a farm growing at the same pace could result in big risks for drystock farm-ers, delegates at the final Finished in 20 Months beef seminar in Northland

heard last month.The three-year Beef +

Lamb New Zealand proj-ect ran multiple studies to find techniques which would let farmers get beef cattle to finishing weights

before their second winter, a key aim being to avoid having heavy animals on pugging prone clay soils when it gets wet.

But some in the trial have argued even 20

months is too long and target kill weights need to be hit at 15-16 months so they can be sold before Christmas and the subse-quent slides in schedule prices.

Most of the on-farm work in the project looked at crops and prioritising use of them by feed qual-ity and stock class. Farm-ers using these ‘fast track’ systems have generally carried fewer animals/hectare to achieve faster liveweight gain with ani-mals putting on 1kg/day or more.

Besides the concerns about not achieving kill weights before autumn’s lower schedules, research-ers also acknowledged the need to control pas-ture quality in spring and autumn, particularly with kikuyu which can quickly become unpalatable if it gets away.

AgFirst consultant Gareth Baynham analysed the impact using Farmax

modelling. In one sce-nario, 63 bulls bought at 250kg and run on 30ha (ie 2.1 bulls/ha) were finished at an average of 313kg car-cass weight between Janu-ary and March.

That compares with a slow track system with 100 bulls bought at the same 250kg weight and run at 3.3 bulls/ha to be sold from November through to April after their second winter.

Baynham says that in a year with average weather there is almost no dif-ference in returns: $929/ha from the 63 bulls and $905/ha from the 100 bulls. In years where the farm had a cold wet winter the fast-tracked system did slightly better, making $725/ha versus $605/ha

in the slow track system, but in a good year the fast-track system made $834/ha compared to $1354/ha from the slow-track. The reason was the stock-ing rate in the fast track system meant only 61% of pasture grown was used to produce 381kg cwt/ha while animals at the heavier stocking rate used 78% of the pasture, pro-ducing 533kg cwt/ha. The take home message is that tools are needed to manage feed quantity and quality regardless of whether more or fewer animals are carried, says Baynham. Higher stocking rates carried longer can mean better use of flushes in growth but equally stock can go backwards faster during feed pinches

30 MANAGEMENT

Fast, slow beef finishing assessed in Far NorthBetween 200 and 300 people turned out for the final seminar in Beef + Lamb New Zealand’s Finished by 20 Months Northland beef programme last month. Gareth Gillatt reports

Laurie Copland and consultant Gareth Baynham at the Finished by 20 Months seminar.

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MANAGEMENT 31

A LEADER-follower grazing system could keep kikuyu-based pasture under control and accelerate beef growth rates, judging by a 12ha trial on Geoff and Dinah Cookson’s farm at Kawaka.

Last month’s ‘Finished by 20 Months’ seminar in Whangarei (see main story) heard how cattle maintained liveweight gain at more than 0.6kg/day and kept pasture metabolisable energy level (ME) at 8.9MJ/kgDM even at the height of summer when quality often crashes.

A high priority group got first pick of pasture while another mob went in immediately after to tidy up and hit the target residual pasture cover of 1500kgMD/ha. Liveweight gains were maintained on the priority group while the lower priority mob did the job of maintaining pasture quality.

The trial area was divided into a 0.6ha cells and used for two trial periods: September 2012 to May 2013, and December 2013 to May 2014. In September 2012, Cookson stocked the unit with two mobs of 13-month-old Friesian bulls: a priority mob of 34 bulls to be processed before June and a light mob of 18 bulls to do the cleanup duties and stay on the property until spring. The priority mob averaged 0.75kg/day gain, going from 290kg to 490kg by May

2013 thanks to stock going onto pasture covers of 2100kgDM/ha to 2600kgDM/ha with 10.3MJME/kg DM, made up of 86% green leaf and 13% legume. For the second trial period Cookson tried different ages of stock, leading with 35 R1 bulls and following with 30 older bulls. The R1 bulls gained 0.68kg/day and the R2 mob did 0.46kg/day. The R1s were going onto 2600-3600kgDM/ha covers of 82% green leaf, 18% legume with an ME of 9.7MJ/kgDM.

Mobs were only separated by a single wire but Cookson says they never had a problem with breakouts.

He plans to run further trials to see if giving pasture a short break between the leader and follower mob might improve liveweight gain in the follower mob.

Leader-follower system

Geoff Cookson

Effect of feed quality on liveweight gain in 300kg steer

Fast, slow beef finishing assessed in Far Northif not managed. Using nitrogen, slower grazing rotations and subdivision can help increase pasture availability, and broadcast-ing annual ryegrass is an option to improve pasture quality. When running fewer ani-mals other classes of stock might be needed to manage pastures or speed up the round if grass is get-

ting overly long. If there’s a deficit, PKE or nitrogen might still be needed.

Baynham warned there was no one solution. Find-ing a mix of tools to suit the farm and system is the key.

“Don’t rely on recipes: think about what would work on your own farm.” For example, Hokianga drystock farmer Laurie

Copland, one of the par-ticipants in the trial, runs breeding cows and bulls on his 450ha farm at Broadwood, 65km north-west of Kaikohe. The farm has flats at the front and broken hills to the rear. Copland runs the bulls on the productive flats and moderate hills, using breeding cows to control the steeper country and

deal with any surplus left by the bulls in times of peak pasture growth. He also maintains an exten-sive regrassing programme on the flats which helps keep pasture ME at 9.5MJ/kgDM or above through-out year, even though else-where summer kikuyu pastures can drop below 7MJME/kgDM. The result is summer liveweight gains of 0.9kg/day without use of supplements, rising to 1.38kg/day in spring. Reseearch data on growth rates off ryegrass was also presented at the semi-nar, showing that finishing cattle on 10-11MJME pas-ture will gain 1.25kg/day-2kg/day, given enough of it, but if quality is allowed to slip to 8MJME they’ll actually lose weight given the same amount of feed.

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32 MANAGEMENT

Many markets for miscanthusFUEL, BEDDING, shelter, forage: super-tall peren-

nial grass miscanthus could have markets as all of them, says Miscanthus New Zealand, a Te Awa-mutu-based company pro-

moting the crop.The grass is already

fairly widely used in Europe and the United States as a bioenergy crop

but was only introduced to New Zealand in 2010 with about 40ha now estab-lished in various crops and trials nationwide.

ANDREW SWALLOW

[email protected]

“It’s a triploid hybrid so it’s completely infer-tile,” says Miscanthus NZ managing director Peter Brown.

Vegetative propagation is by splitting plantlets, or cutting out rhizomes from the considerable root-mass the plants develop after a couple of years.

It’s that root mass which gives the C4 grass its ability to regrow to 3-4m every summer. Being a C4 plant, the foliage isn’t frost hardy so when winter comes it dies off leaving dry stems which can be harvested for fuel, or, as Rural News’ sister paper Dairy News reported last week, left as shelter for stock.

Brown says cuts close to 40tDM/ha have been recorded but he works on 20tDM/ha/year as a con-servative yield for his cost-ings.

At 20% drymatter the harvested miscan-thus, which is usually cut and baled in large squares, releases about 15gigajoules/t of energy.

“It’s on a par with low quality coal.”

With every gigajoule worth $5 to $10 depending on market, that’s a gross

STRIPS OF miscanthus have been planted to shelter six paddocks on a dairy farm near Aylesbury, Central Canterbury.

“The reason it appeals is because you can let it grow to its maximum height and the centre pivot just passes straight through it,” Lincoln University researcher Christopher Littlejohn explains.

Shelter for livestock is only part of the equation: increased pasture growth and reduced evapotrans-piration are other known benefits of shelter so the trial is mapping pasture growth to see if there’s a benefit in the lee of the miscanthus.

Permeability is also being measured at various points of the season, as it influences the widthe of shelter a windbreak provides.

“To get that distance effect you want 50-60% permeability. If you’ve got that you should get shelter for 15-20 times the height of the shelter belt.”

The miscanthus strips have been planted in 7m-wide strips on the Aylesbury farm to allow for harvesting while still leaving a width for shelter but if shelter was the only aim a 3m or 4m strip would suffice, Littlejohn suggested.

Harvested green the miscanthus has made a low quality baleage, tests

on November-made bales coming out at 9.1MJ of metaboliseable energy (ME) per kg drymatter, with a 17% drymatter content. Cut and baled in winter, drymatter was 58% but ME tumbled to 4.6MJ/kgDM.

Project supervisor Professor Steve Wratten is looking into other benefits with the crop, such as habitat provision boosting biodiver-sity and improved farm aesthetics.

“We counted up to 13 benefits of this on the dairy farm. That’s quite a good marketing story,” he says.

Shelter trials

Miscanthus New Zealand managing director Peter Brown shows some pelleted and chopped products.

Lincoln University researcher Christopher Littlejohn with a second-year stand of miscanthus at Aylesbury.

TO PAGE 33

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MANAGEMENT 33

return of $1500 to $3000/ha. The higher value would require pelleting, Brown says, but enquiries to Carter Holt Harvey and Genesis Energy show bulk sales of bales at the lower value are possible.

“Carter Holt Harvey are serious enough about it they’ve planted 9ha of their own,” Brown told a meeting in Ashburton last month.

Cutting and baling in July-August would be at a time when such machines are normally idle so getting contractors shouldn’t be a problem and other than harvest-ing there are few, if any, annual growing costs as the grass out competes weeds and to date, hasn’t suffered serious pest or disease attack anywhere in New Zealand or fur-ther afield.

Establishment costs

depend on method, but Miscanthus New Zealand recommends cultivat-ing and applying a layer of residual herbicide simi-lar to the mixes used for maize before planting in a 1m grid. Plantlets come in at 58c each with a mini-mum order of 1000.

“We’ve found people tend not to look after smaller areas,” Brown told Rural News.

Rabbits have also been found to attack small areas of recently planted miscanthus, but larger-scale plantings, or estab-lished plants, haven’t had a problem.

Rhizomes are a cheaper option, at 20-25c each, but are only avail-able for plantings of sev-eral hectares and are a less reliable establish-ment method. To date hand planting has proved best but mechanisa-tion with potato or vari-

ous other vegetable type planters is being investi-gated.

Planted once risk of frost is past, a 1-1.5m tall stand can be expected in the first season, fol-lowed by 2-2.5m in the second year, and the for-ests of 3-4m shoots there-after. Stands elsewhere in the world have lasted decades.

Besides fuel use – there’s the potential for extraction of biofuel as well as simply burn-ing the stuff – harvested green the crop has an ME of about 9MJ/kgDM so there’s potential as a low quality forage.

Harvested dry with a forage harvester, or perhaps baled and put through a chopper at a later date, it can be used as a bedding.

“It’s much more absorbent than sawdust or straw,” says Brown.

FROM PAGE 32

Many markets for miscanthus$500-$600/ha left in paddockHOW GOOD is your pas-ture management? Dele-gates at last week’s South Island Dairy Event were told “it’s not hard to find $500-600/ha left in the paddock” over a season’s production.

And while the mes-sage was pitched at dairy farmers, presenter David Chapman, Dairy NZ, told Rural News the fine-tun-ing required to recover that lost production is the same for sheep and beef as it is for dairy.

“The best pasture for milk production will be the best pasture for pro-ducing beef. For sheep the heights would be a bit dif-ferent but the principles are the same.”

Chapman stressed the two key performance indicators to optimise production off pasture management: pre-graz-ing mass, and post grazing residual.

Hundreds of research projects have shown that for ryegrass a post graz-ing residual of about 1500kgDM/ha is the opti-mum balance between achieving rapid regrowth and avoiding loss of qual-ity next time the pasture is grazed.

Take pasture much below that, and regrowth

will be excessively delayed; leave much more, and quality will turn to custard before the cows get back with consequent produc-tion loss and, if pasture is then grazed hard to get back on track, a regrowth delay because the base of the sward has been exces-sively shaded.

With consistent graz-ing to 1500kgDM/ha – seven to eight clicks on a platemeter – there will always be a little leaf left on tillers which is “critical because that’s where our regrowth comes from,” explained Chapman.

Without that, the first new leaf to emerge is much smaller, and even the second is still some-what stunted. Maxi-

mum average growth rate, regardless of grazing residual, is achieved when the third new leaf is fully emerged, which is when regrazing should occur, if it hasn’t already happened.

Chapman’s Dairy NZ colleague Sean McCar-thy relayed a study of seven dairy farms in the lower North Island which found two farms regularly under-grazing, two reg-ularly over-grazing, and while the other three had a better balance, they still had 30-40% of paddocks which were over or under grazed.

“The four that were regularly under or over grazing were convinced they were doing a better job than that,” McCarthy

ANDREW SWALLOW

[email protected]

commented to Rural News.Chapman noted one

potential benefit of an over-grazing event was a rebound in clover content of the pasture.

SIDE speakers Sean McCarthy (left) and David Chapman, DairyNZ.

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34 MANAGEMENT

Horsetail tipped to be as bad as Cali’s

Craig Davey explaining field horsetail control options.

A PROLIFIC perennial weed invading paddocks, laneways and tracks across the country “is going to be like Californian thistles,” says Horizons Regional Council environmental coordinator Craig Davey.

Davey is talking about field horsetail, an invasive species in New Zealand since the early 1900s but only recently becoming a

serious agricultural issue.He says it was probably

brought here by gold diggers, which points to the source of most problems today: river gravels and silts. With horsetail rampant in some riverbeds, extraction of gravels and silts for roading and laneways has seen it spread to roadsides and farms.

“You’re importing the weed right into the middle of the place it’s going to cause a problem with

gravel for tracks for irriga-tors or races.”

Contractors have been told of the problem and encouraged to ensure extractions from infested riverbeds are used only on land already known to be infested with horsetail.

The weed is poisonous to ruminants and horses, though a Horizons book-let on the weed notes no cases of poisoning in New Zealand.

Horizons now has a website page dedicated to

the weed and its control. However, it’s not just a Horizons issue: a Landcare Research newsletter last year noted infestations in Kawhia (Waikato), Have-lock North, New Plym-outh, Wanganui, Lower Rangitikei, Marlborough, Nelson, the West Coast, Christchurch and Dune-din.

The Landcare newslet-ter notes the total amount of infested land nation-wide is unknown. Davey echoes that, but says it is clearly a serious problem for some farmers in Hori-zons’ region. When the council began to publicise the issue it was inundated with information requests and cries for help. A work-ing group was formed, and now the web pages explaining how to kill it.

ANDREW [email protected]

A combination of chemical, pathway and biological interventions is the best approach, says Davey.

“Landowners need to be determined and per-sistent, spraying the weed three-four times/year if sites are small and the root system isn’t too deep.”

Tackling really bad patches “isn’t viable chem-ically” unless the pasture is taken out too, culti-vated, and then the regen-erating horsetail is tackled during a fallow phase.

In pasture, MCPA or preferably trichlopyr offers some control, but

clover will be sacrificed. During a fallow phase ami-trole, glyphosate, or a combination product such as TAG (terbuthylazine, amitrole, oxyfluorfen and glyphosate), can be used.

Healthy, competitive pasture helps keep the weed at bay and nitrogen fertiliser can give grass an edge over the weed as it is unresponsive to nitro-gen. Mowing, or hard graz-ing, particularly in spring, doesn’t help as it opens the pasture and lets the weed get away.

Horsetail is also known to spoil baleage and hay, points out Davey.

Roadside to paddock

spread is common and Davey urges landowners to check road frontages.

A Horizons, Rangitikei Field Horsetail Group and Landcare Trust Sustainable Farming Fund project is looking at possible insect or disease biocontrols for which some possible species are now in quarantine. It would likely take five years for populations of an approved biocontrol agent to build to a level where impact could be assessed. Nonetheless, long term biological control is likely to be the only cost effective and sustainable option, says Davey.

FIELD HORSETAIL• Spreads from rivers in sands and gravels• Poisonous and unpalatable to stock• Invasive and persistent• Chemical controls limited• Competitive pasture cover helps slow ingress See www.horizons.govt.nz – Hover over ‘Pest plant and animal’ on left of home page, and click on ‘plants’ to pull up tab for dedicated horsetail pages.

Horsetail seedling.

www.ruralnews.co.nz

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MANAGEMENT 35

TECHNOLOGICAL ADVANCES and emerging markets mean farm wood-lot timber is increasingly being used for more than just sawn timber.

On average New Zea-landers use about two cubic metres of wood/person/year – that’s about two tonnes of green wood/year. This may not seem credible but add up the wide variety of wood based products and it clearly is. There are prod-ucts formed from reor-ganising individual wood fibres: things like tissues, paper towels, printing paper, newspapers, mag-azines, cardboard pack-aging, and all manner of wood plastic composites. Wood’s also made into large sheets such as hard-board, Medium Density Fibre (MDF) board, chip-board, plywood. Engineer-ing projects use wood in laminated beams, lam-inated veneer lumber (LVL), and cross lami-nated timber (CLT) while traditional sawn timber gets used in everything from framing and furni-ture to fence posts and sheds.

Such a huge variety of

products means all parts of the log are used, cre-ating stable demand for wood of all kinds, includ-ing bark and sawdust. This demand is symptomatic of a wealthy society that con-sumes a lot of resources as it pursues a high impact lifestyle. Fortunately, most wood is produced sustain-ably from purpose planted forests harvesting sun-light, carbon dioxide and water. Generally, wood products need to comply with green certification schemes before they can be traded and increas-ingly consumers seek such assurances of sustainabil-ity. About 45% of planta-tion forest in New Zealand is certified within the For-estry Stewardship Council (FSC) scheme.

As a tree grows it stores carbon dioxide and energy from the sun. If not burnt or allowed to rot, each cubic metre of wood holds about 650kg of carbon dioxide. If burnt it releases 6.9 Gigajoules of heat energy to heat homes and industrial pro-cesses. To achieve the same heat from electricity costs about $300. Wood provides about 8% of New Zealand’s consumer energy, including heat for

homes, swimming pools, glasshouses, and the wood processing industry itself.

Liquid transport fuels from wood are a new and exciting possibility. A cubic metre of wood can be converted to about 95 litres of biodiesel or 140 litres of ethanol. While these processes are still experimental and too expensive to compete with oil, in the not too distant future this may change.

Chemical extraction may allow wood-derived materials to replace oil-sourced substances such as glues and plastics. Already by-products from pulping wood provide tall oil, cleaning products, disinfectants, inks, fra-grances, and soaps. Radi-ata pine bark’s being used as a source of natural antioxidant and anti-inflammatory bioflavo-noid compounds for the

GRAHAM WEST

New opportunities with woodlotshealth market.

New Zealand is one of few countries with a large increase in mature plan-tation forest looming. We should soon enjoy the ben-efits of a planting boom from investors in the early 1990s. Annual wood har-vest is currently at 30m cu m. That’s expected to increase by 10m in 8-10 years. As the Ministry for Primary Industries 2010, Scenario 2, projec-tion indicates (see graph) the peak harvest could be much greater but it will probably be constrained by infrastructure, avail-ability of logging and log transport contractors, and markets. A significant pro-portion of this peak wood is in small to medium for-ests scattered across farms in all regions of New Zea-land. Used wisely, it’s an opportunity to improve the wealth of New Zea-landers.

Currently more than double the amount of wood consumed domes-tically is exported. Most goes as logs to China but about 2m cu m of sawn timber and a similar volume of pulp and paper are also shipped.

To maximise the ben-efit to New Zealand from the approaching “wave of wood” a significant invest-ment in processing is needed, integrated with markets for by-products

such as saw dust, bark and chips. Behind the peak of the wave is a likely oppor-tunity, a shortage of wood, which planting now could target. Such investment may also be rewarded in the meantime for environ-mental benefits accrued: carbon dioxide absorbed, oxygen released, water filtered. Trees planted now are unlikely to end up as sawn timber or log exports, so it is important not to be blinkered by tra-

dition. When mature, they may well be used for fibre, chemical extraction and energy generation.• Graham West is a Prin-cipal Technologist at Scion, a Crown Research Insti-tute dedicated to forestry, wood product, biomaterial and bioenergy development. Formerly the NZ Forest Research Institute, Scion employs approximately 300 people. Its head office is in Rotorua. See www.scionre-search.com for more

THE UNITED Nations’ Food and Agriculture Organisation (FAO) last week released is biannual flagship publication State of the World’s Forests (SOFO) which this year focuses on socioeconomic benefits, including income and employment, wood energy, forest products in housing, and the need to shift attention from trees to people, both for data collection and policy making.

The release coincided with FAO’s Committee on Forestry (COFO) review-ing forest policy measures that promote sustainable production and consump-tion; ownership and management rights;

access to resources, markets and financ-ing; equitable benefit sharing; and valua-tion of forest products and services.

Prince Laurent of Belgium was appointed Special Ambassador for For-ests and the Environment in recognition of his longstanding efforts to promote global development and sustainable tech-nologies.

Two publications dedicated to family forestry, “A Roadmap on the Way For-ward for Forest Producer Organizations” and “Making change happen: what can governments do to strengthen forest pro-ducer organizations” were also released. See www.fao.org/forestry

Forestry’s benefits focus of FAO report

MPI Forestry Projection, Scenario 2, 2010

Farm forestry plantings now could meet a future market shortage, suggests Scion’s Graham West.

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36 ANIMAL HEALTH

Cow comfort key to stand-off padsCOW COMFORT should be a farmer’s top priority in any decision to install stand-off pads.So says DairyNZ, which did a three-year study of stand-off pads that help pre-vent pasture damage in wet weather. The work is reviewed in Stand-off pads – your essential guide to planning, design and management.

The research looked at eight North Island farms with stand-off pads during May-August. The Northland and Waikato farms were monitored for hours of pad use, pad stocking density, surface material deterioration and cow comfort.

DairyNZ farm systems special-ist Chris Glassey says it used activity meters on cows on a stand-off pad in Northland and found that the cows’ comfort levels were well-maintained over the winter period.

“That’s the encouraging bit, the cows

liked it,” says Glassey. “Their comfort was measured in time spent lying down. Cows need to lie down for at least eight hours a day and will spend time lying in the paddock, instead of grazing, if the stand-off pad isn’t comfortable and spacious enough.

“The key to the Northland pad’s success was designing it correctly with appropriate drainage, then regularly topping up and replacing the surface material (woodchips) to create a sur-face the cows wanted to lie on.”

The new guidelines are to help farm-ers establish and run stand-off pads that keep cows comfortable, fit with the farm system and prevent pasture damage.

“Most farmers are looking for the simplest, most established methods of minimising winter and summer pasture damage,” says Glassey.

“New practices and knowledge gained by farmers over the years… are

included in the new guide.”Glassey says the research showed

that one pugging event during winter can halve pasture production for as much as seven weeks.

“About 40% of the ground was bare after moderate treading in winter and

pasture took two months to recover, during which time pasture growth fell by 600kgDM/ha.

“Through pasture reduction pug-ging can have an impact on milk pro-duction.”

North Island farmers wintering

herds on wetter soil types and upper North Island farmers using on-off grazing to protect summer pasture are likely users of stand-off pads and will find the guide useful, Glassey says.

“Despite standing-off being around for some time, larger herds now make

it more complex, bringing increased costs. Containment of effluent and greater requirements to meet cow com-fort levels are also more important.”For more details see:www.dairynz.co.nz/stand-off-pads

“Cows need to lie down for at least eight hours a day and will spend their time lying in the paddock if the feed-pad isn’t comfortable.”

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38 ANIMAL HEALTH

Aerial TB control operations toutedTBFREE NEW Zealand says farmers and environ-mentalists alike are tout-ing the benefits of an aerial bovine tuberculosis (TB) control operation getting underway in the Rangitoto Range west of Mangakino, Waikato.

The popular hunting area is part of 10 million ha of TB risk area in New Zea-

land where TB-infected wild animals have been found. In such areas, says TBFree, possums cause most of the new herd infections in farmed cattle and deer.

The national pest man-agement plan is to eradi-cate TB from at least one quarter of the risk area by 2026. Waikato TBfree

committee chairman John Bubb says eradicating the disease from the Rangitoto Range would prove TB can be eliminated in extensive forest areas.

“However, the risk remains that illegally introducing wild animals, such as pigs and deer, into the Rangitoto area could cause TB to return after

it has been proven to be eradicated,” warns Bubb.

Such wildlife move-ments are an offence under the Wild Animal Control Act, he points out. “It would be a shame to jeopardise this work through such reckless behaviour.”

Wild animal surveys will be undertaken after

the control operation to check whether disease remains.

As letters to this news-paper in recent issues have shown, the use of 1080 to kill TB vectors remains a controversial issue opposed by some readers.

TBFree’s media release last week on the oper-ation did not mention

the means of killing, but a similar release ear-lier last month quoted Native Forest Restoration Trust reserves manager Sharen Graham saying the trust “actively sup-ports the upcoming aerial 1080 operation” as the Rangitoto area is home to giant totara, rimu and kahikatea as well as native birds including tui, falcon, robins and kaka, all in danger of pest browsing and predation.

“The method has previously proven to leave the ecosystem in a much richer state than when possums, rats and stoats are devouring native wildlife.” Last week’s media release also highlighted ecosystem benefits, quoting Department of Conservation senior ranger for biodiversity Tertia Thurley saying some of New Zealand’s rarest bird and plant species will benefit from the pest kill operation.

“A wide range of native

forest birds, trees and wildlife also stand to ben-efit from the knock back of predators like possums, rats and stoats… DOC is working closely with TBfree New Zealand to ensure the best results possible for native wild-life.”

TBFree says strict reg-ulations must be followed during pest kill operations, including gaining consent from organisations such as Waikato Regional Coun-cil, consulting affected land occupiers and post-ing warning signs at main access points to the opera-tional area.

Bubb says dog owners must be extra vigilant, keeping their animals well away from areas where warning signs are present.

“It will not be safe for your dog to re-enter the area until all signs have been officially removed.”

Dog owners are respon-sible for keeping their ani-mals under control at all times, particularly near operational areas, he adds.

Agchem safety campaign comingA CAMPAIGN highlighting why you should wear the right safety gear when using farm chemicals will be launched this month.

“This campaign gets to the heart of the farm – the family – and why it’s so important to look after your health,” says Rob Forlong, chief executive of the Envi-ronmental Protection Authority (EPA).

About 600-900 New Zealanders die every year from exposure to hazardous substances and the EPA says correct safety measures could prevent many of these deaths. The campaign directly addresses the ‘she’ll be right’ attitude to safety gear with a compel-ling message about what can happen if you’re wrong.

At least 260 rural supply stores will display posters and distribute flyers as will HortNZ, Federated Farm-ers, Rural Contractors and WorkSafe NZ through their Safer Farms scheme; 150,000 flyers will be dis-tributed.

Most infections in TB risk areas are from wildlife, says TBFree New Zealand.

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ANIMAL HEALTH 39

Wormwise revamp relayed to NZVA

• Healthy animals harbour worms and always will – eradication is neither an appropriate goal nor achievable

• Well fed animals are less affected by worms than those under nutritional stress

• Older animals are generally less susceptible to worms than younger ones, and, at times, can be used to reduce the number of infective larvae on pastures

• Animals vary in their susceptibility to parasites (genetic variability)

• Animals can be selectively bred for resistance or resilience to round-worms

• Each farm is unique and effective worm management may be different from farm to farm

• When breeding for a characteristic, increased selection pressure will result in more rapid change being made

(applies both to livestock and para-sites)

• Breeding for a single trait leads to more rapid change than breeding for a combination of traits

• Most of the year there are more worms, in the various life stages, on pasture than inside the animals

• Anthelmintics are a finite resource. The way in which you use drenches and manage parasites can change the rate at which you select for resistant worms

• Long-acting drench formulations may hasten development of drench resistance. Once present on a farm, resistance to anthelmintics can be considered permanent

• Anthelmintics used in combination can delay the onset of resistance

• A population of undrenched worms should be maintained on farm

Updated principles

THE NATIONAL strategy for tackling internal para-sites in livestock, Worm-wise, is getting a refresh.

Workshops, a new web-site and new structure are on their way and princi-ples to ensure a consis-tent approach to parasite management have been updated (see panel).

Simon Marshall, from Vet Services Dannevirke, relayed the changes at last week’s New Zealand Veter-inary Association confer-ence in Hamilton.

“Wormwise strategy is to encourage vets in par-ticular to take owner-ship of the key Wormwise principles,” he said. “The result of [this] will be clear consistent messages being disseminated to farmers.”

The plan is to run a series of ‘train the trainer’ workshops for vets then work with Beef + Lamb New Zealand to organise farmer extension events within its regional work-shops.

“There have been some in the last couple of years but nothing like the roll-out of events there was in 2007-08 when Wormwise was launched,” Marshall told Rural News prior to the NZVA conference.

The structure of

Wormwise has been changed to a charitable trust, so that it is now a contractor to B+LNZ, a move which will make it more autonomous and accountable for its actions, says Marshall.

Funding to date has

mainly been by B+LNZ with in-kind contributions from NZVA, Agcarm and MPI but it is hoped finan-cial contributions from DairyNZ and DINZ can be secured.

“This will have a two-

ANDREW SWALLOW

[email protected]

What’s the parasite plan? The NZVA vet conference heard few farms have one.

TO PAGE 40

www.ruralnews.co.nz

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US PRESIDENT Barack Obama has ordered the US Environmental Protection Agency to assess pesticide impact on bee and other pollinator health and to

take action, as appropri-ate, within 180 days.

“The continued loss of commercial honey bee col-onies poses a threat to the economic stability of com-mercial beekeeping and pollination operations in

40 ANIMAL HEALTH

fold benefit, one being further resources to carry out WW activities plus involvement from other agricul-tural sectors needing support for the control of inter-nal parasitism,” Marshall told the conference.

Wormwise’s website, www.wormwise.co.nz has been reviewed by the organisation’s technical advi-sory group and a new version was due online last week, though as of Wednesday it did not appear to have been updated.

“The Wormwise booklet is also being reviewed and re-written by the technical advisory group during this year and should be ready later this year,” added Marshall.

Vets were also encouraged to work with their cli-ents to produce farm specific parasite management plans, “an essential part of any farming system, but there are few farms that will have one in place…. Once a faecal egg count reduction test (FECRT) has been completed it becomes a great stepping stone to get one done.”

Fellow conference speaker, Richard Hilson from Vet Services’ Waipukurau clinic, who also has a 220ha mixed farm, said it is relatively simple to incorporate Wormwise into the overall management systems.

FROM PAGE 39

Wormwise revamp

Obama orders action for bees

The US is funding conservation reserves to support bees. PHOTO:

CLAY SMITH, IOWA DEPARTMENT OF NATURAL

RESOURCES.

ALAN HARMANthe US, which could have profound implications for agriculture and food,” says the President.

“Severe yearly declines create concern that bee colony losses could reach a point from which the commercial pollination industry would not be able to adequately recover.”

Other pollinator pop-ulations, including native bees, birds, bats and but-terflies, are also dwindling. “The problem is serious and requires immediate attention.”

Managed honey bee colonies in the US have fallen from six million in 1947 to 2.5 million.

Obama has created a pollinator health task force headed by the Sec-retary of Agriculture and the administrator of the EPA made up of represen-tatives of 14 government agencies.

Obama wants a strat-egy from the agencies in the next six months that will protect pollinators by improving their habitat. He wants explicit goals, milestones and a system to measure progress; a polli-nator research action plan; a public education plan and proposals for devel-oping public-private part-nerships to encourage the protection of pollinators and increase the quality

and amount of habitat and forage for pollinators.

He’s given the Depart-ments of Agriculture (USDA) and the Interior 90 days to develop best management practices to enhance pollinator habitat on federal lands and has ordered reserves of native seed mixes, including pol-linator-friendly plants, to be established for use on post-fire rehabilitation projects and other restora-tion activities.

The Council on Envi-ronmental Quality and the General Services Adminis-tration has the same dead-line to revise guidelines for designed landscapes and public buildings to incor-porate pollinator-friendly practices and high quality pollinator habitats.

The USDA is also to spend US$8m help-ing farmers establish new honey bee habi-tats in Michigan, Minne-sota, North Dakota, South Dakota and Wisconsin. It comes on top of the US$3m the USDA gave Midwest states earlier this year to support bee popu-lations.

Agriculture Secretary Tom Vilsack says US$15 billion of agricultural pro-duction, including some 130 fruits and vegetables, depend on the health and well-being of honey bees.

THE LONG: Long-acting clostridial protection – so you can vaccinate earlier and protect lambs for longer.

If you’ve ever had lambs drop dead from diseases like Pulpy

Kidney, you’ll know why clostridial protection is so important.

5-in-1 vaccination at pre-lamb dramatically increases lamb

survival through to weaning. And the more antibodies they

receive, the more protected they’ll be.

NILVAX is a 5-in-1 that contains levamisole, which boosts

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colostrum from one ewe. Clostridial protection is one of

the best things you can do right now to ensure more lambs

survive through to weaning. Pick up NILVAX today from your

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THE SHORT:A short-acting drench.

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WASHING STAND-OFF pads and dairy shed yards with recycled water could cut fresh water usage by thousands of litres every milking, says Houle solutions and field ser-vices technician Murray McEwan.

Even mid-sized yards demand surprising quan-tities of water for each clean, perhaps not a huge concern now but likely to be soon. Hence the appeal

of a yard flushing system which re-uses water from effluent ponds and sumps.

After flushing, the water from the yard is screened for effluent then put into a sump or pond. Come the next wash, the system pumps liquid from the pond, mixes it with fresh water and pumps it back out to the yard via chambers cut into the con-crete surface and covered by metal plates.

Relatively common overseas, this practice

has only recently been considered by farmers in New Zealand, pressured to cut fresh water consumption.

McEwan says he knows of a 1100-cow farm that cut washdown freshwa-ter use (yard and feedpad) to 15,000L/day by using a ‘greenwash’ system pump-ing 120,000L of recyled water for flushing con-crete.

Strict rules govern the use of greenwater on dairy yards. Fonterra for-

bids farmers to use hand-held hoses to green wash yards; its use is restricted to pumping it from an outlet no more than 300mm above ground, with no detectable mist or ‘aerosol’.

The holding area for greenwater must be at least 10m from milk-ing plant if it holds up to 22,500L, or 20m if it holds more. Green water may not come closer than 5m from cups.

The yard must be

washed after every milking and must be free of resid-ual sediment; the water recovery system must have consistent delivery of water free from exces-sive sediment or offensive odours.

No milk produced in a shed with a greenwash system attached may be

used to make unpasteur-ised dairy products.

McEwan says setting up systems right is essential and will make sure washdown runs smoothly.

Product from green-wash systems tends to be more valuable when spread back on a paddock

because it contains more nutrients from multiple washes.

McEwan says Environ-ment Waikato requires farmers to limit water use to 70L/cow/day under resource consents.Tel. 0800 432 3276www.gea-farmtechnolo-gies.com

MACHINERY & PRODUCTS 41

Greenwashing slashes in-shed water use

GARETH GILLATT

Murray McEwan with a screen filter at the Waikato field days.

Drill suits planting high-energy cropTONY HOPKINSON

John Chapman, cultivation and seeding specialist for Power Farming, Morrinsville.

WITH THREE machines already oper-ating here, John Chapman, cultivation and seeding product specialist, Power Farming, sees a growing market for drills able to sow fodder beet.

Chapman, from the UK, saw the potential for fodder beet in New Zea-land as farmers wanted to increase production by feeding their cows this high-energy ration.

He cites a 12-row Kverneland Monopill SE drill owned by Paul and Tracey O’Rourke, Hataikahawai Land Holdings Ltd, Taranaki.

“The most important attribute of this machine is that the maximum seed drop height is 3cm and this guar-antees precise seed placement without bounce or roll.”

Chapman says fodder beet can yield on average 18,000-22,000kgDM/ha – and as much as 30,000kgDM – whereas average yield figure for swedes and kale are only 10,000-12,000kgDM/ha and with potential for 18,000kgDM/ha.

The crop can be grazed in situ or lifted and stored and is highly palat-able.

The drill can be wheel driven or electrically powered, working with geo

control allied with GPS: these prevent double coverage, and seeds in alternate rows are spaced to give optimum grow-ing space for each plant.

It can also be used to plant rape, canola and chicory.

Crops can be planted into pre-pared seed beds or direct drilled into mulch when the front Farmflex wheel is replaced with a double cutting disc equipped with side zero pressure tyres.

The trailing coulter draws a clean seed furrow for precise seed place-ment.Tel. 07 902 2200www.powerfarming.co.nz

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42 MACHINERY & PRODUCTS

One finger startsMACHINERY MAKER Husqvarna turns 325 this year and the company says it is not slowing down on the innovation front.

The Block NZ 2012 winner Ben Crawford, a South-lander just back from a visit to the company’s Swed-ish headquarters, is said to be lauding its new 400 series chainsaws as “the most effortless chainsaws I’ve ever used”.

Features include the maker’s Smart Start technol-ogy which demands minimal starting effort. A single finger is all it takes, Crawford says.

The new machines also have a tool-less chain ten-sioner, 75% lower emissions, increased fuel efficiency that doesn’t compromise power and highly effective anti-vibration dampers.www.husqvarna.com/nz

Low pass means success on Kiwi turfON DISPLAY at the recent field days in Waikato was the Croplands 2000 kiwi self-propelled orchard sprayer, the latest in machines especially for kiwifruit, and for other low hanging crops.

“This Croplands machine is a new design with many new fea-tures,” said upper North Island territory manager Greg Small.

The 4WD machine is 1390mm high when empty and has ground clearance of 220mm. It is pow-ered by a 85hp turbo-charged diesel engine. It has 2- or 4-wheel steering changeable at the flick of a switch.

The cab is constantly pres-surised with a 100% fresh, con-ditioned air. It is fully specced for travelling on the road and has safety cameras for reversing.

The chassis is galvanised and the fuel tank holds 65L.

The spraying pump is a Crop-

lands AR 170 brass which can deliver 167L/min at 2000rpm. It is belt driven from the motor. The fiberglass spray tank holds 2000L and there is a 70L flush tank.

The tank has a electronic tank level indicator with cab readout and a plastic tube indicator for external use.

Spray solutions are agitated

through a bypass with twin ven-turis.

At the rear is a 820 FE Crop-lands Kiwi air control fan with a Croplands soft-start and run-down clutch.Tel. 0800 106 898 www.croplands.co.nz

TONY HOPKINSON

Self-propelled orchard sprayer (above). Right: Greg Small.

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NEW model Fieldmaster mulchers and mowers will come with European drive gear and will carry longer warranties, says deputy general manager Rachel Stock.

New mowers will have Italian gearboxes, cou-plings and extensions, and Spanish mechanical clutches and PTOs, all warranted for two years.

The clutches prevent the gearboxes from damage that can be sustained when they disen-gage then re-engage at excessive torque levels; the clutches ensure re-engagement only at manageable torque levels.

Stock says the new equipment will make the implements more reliable and perform to already proven specifications.Tel. 09 237 71500 www.fieldmaster.co.nz

Mower maker shifts to Euro driveline

Kiwi mower scores hit on birdstrikeTOPPING mower spe-cialist Fieldmaster at the Waikato field days launched a mower devel-oped for one of the world’s busiest and most challeng-ing mowing environments – international airports.

The Auckland mower and farm implement man-ufacturer worked with Auckland International Airport to develop the Air-port Express, capable of mowing large areas quickly without damaging pasture or leaving much litter.

Fieldmaster manag-ing director Myles Cooper says birdstrike is a major problem for airports: 1000 incidents in New Zealand each year, 90% near air-ports as planes take off and land.

Auckland airport has 200ha to mow in only 2.5 hours, and it remains

unmown for most of the year due to poor drainage and flat terrain, Cooper says.

Preferred airport grass length is 150mm, in which birds would find food but nowhere to nest.

The company first looked for a vehicle capa-ble of cutting quickly while moving ‘lightly’ over the ground, finally settling on a 70hp Reform Metrac H7X slope tractor. This weighs 2.3 tonnes, has ground loading of 7psi and can cut at about 20km/h.

The new mower has multiple carbon fibre decks with double chains at front and rear that pre-vent debris flying onto runways; the blades are specially angled to lift grass for a better, more consistent cut.

Deck suspension sys-tems had to be such as to prevent scalping (soil

being exposed) during mowing “because any ground exposed would [yield] worms and attract birds”.

The mower, which allows Auckland Airport to keep grass trimmed for 12

months of the year instead of four, has been in opera-tion for at least a month. Other airports and munic-ipal bodies are showing interest.Tel. 09 237 1500www.fieldmaster.co.nz

GARETH GILLATT

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

Fieldmaster managing director Myles Cooper at the field days.

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KingQuad 500 4X4 AUTO• Liquid cooled fuel injected 4-stroke• CVT transmission with Hi/Lo

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44 MACHINERY & PRODUCTS

A little luxury is nice now and thenAN OCCASIONAL dark chocolate is OK isn’t it? And my cardiologist actu-ally recommends the odd whisky.

For those who like a little luxury, the new Lexus CT200h may fit the bill. Discretion is the key, as the brand is enjoyed by those not happy to be seen with a German badge on the bonnet.

This is the baby of the range, priced from $49,995. Larger top-of-the-line Lexus are so eye-watering expensive that even the distributor lists them as

‘price on application”. If you have to ask, perhaps you can’t afford one.

For this model, a small premium on mainline brands buys you some fairly smart kit.

Power comes from a hybrid 1.8L petrol engine offering frugal 4.1L/100km and emitting only 94g/km of CO

2 emissions.

After a long drive I had a good feel for the car and thought it a bit lacking in performance but hadn’t been using the power setting on the transmission. This neat dial changes the interior lighting to red, the eco-gauge changes instantly to

a tachometer and both the throttle and steering are made more responsive. It made a bigger difference than I had

expected to the drive. This is a great fea-ture that can be used as the road, or your intentions on it, change.

Not a large car, but wonderfully crafted. An uninformed critic – I’ve had to put up with a few with this car – will

say, “Oh it’s just a flash Corolla”. But I spent a week in a Corolla recently and I can assure you that you wouldn’t recog-

nise many features from Lexus’ parent company Toyota’s simi-lar-sized cousin.

The interior has some daring design touches and is beautifully crafted and easy to feel your

way around. The large info and enter-tainment screen is operated by a nice mouse type control and will provide as much information as you will ever need on your trip. I would like the screen to fold away when not wanted, but unfor-

tunately it is a permanent structure. Seating is snug, very comfortable

and adjustable in many ways. Leather is standard in the two top models and an option in the base model and, thank-fully, for long distance drivers there is welcome under-thigh support.

The luggage space is a bit small – 375L. The driving position is excel-lent and all-round visibility is adequate despite the high rear quarters.

The CT200h line provides a well-appointed, well-priced entry to a brand recognised as technically advanced and adding prestige to the owner’s garage.

The new Lexus CT200h.

For those who like a little luxury, the new Lexus CT200h may fit the bill.

MARK MACFARLANE

[email protected]

ACCELERATEGROWTH

Everything starts with a healthy diet. Our mixer wagon will keep you in control of your herd’s weight and health. As they grow, so will you. Make every minute count.

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New Jaguar strong, fast and nimbleJAGUAR HAS unveiled its F-type Coupé, saying it is the best-performing sports car it has ever pro-duced.

The car will sell here in three versions: F-type R, F-type S and the F-type. The F-type Coupé is on sale here now from $125,000, the F-type S will cost $140,000 and the F-type R $185,000.

Jaguar New Zealand sales manager Paul Rick-etts says after the launch of the F-type converti-ble last year it knew inter-est in the coupé would be strong.

“Deposits have sur-passed our expectations and we believe this inter-est will grow as more people experience the F-type Coupé.”

The F-type R Coupé is powered by Jaguar’s 5.0L supercharged V8 engine delivers 404kW/680Nm, accelerates to 100km/h in 4.2-seconds and has a top speed of 300km/h (elec-tronically limited).

The F-type S Coupé and F-type Coupé are powered by Jaguar’s 3.0L V6 supercharged petrol engines in 280kW/460Nm and 250kW/450Nm forms respectively, giving 0-100km/h in 4.9/5.3-sec-onds and top speeds of 275/260km/h.

The F-type Coupé has a “dramatic cabin-rearward stance defined by three heartlines”. “The first two heartlines – shared with F-type Convertible – form the muscular front and rear wings, the third heart-line is the sweeping coupé roof profile which pro-vides an unbroken silhou-ette while emphasising the… tapered cabin sitting between powerful rear haunches.”

The F-type Coupé has a lightweight, extremely strong aluminium bodyshell. Torsional rigid-ity for all F-type Coupé variants is 33,000 Nm/degree – greater than in any previous production Jaguar, this rigidity under-pinning excellent dynamic attributes.

The F-type Coupé’s body side is made from a single piece aluminium pressing, probably the most extreme cold-formed aluminium body side in the automotive industry – no multiple panels or cosmetic joints. The roof panel itself is available in either aluminium or pan-oramic glass form.

The F-type R Coupé has a bespoke suspension set-up and new dynamic technologies. These include an electronic active differential (EAD)

and, for the first time on a Jaguar, torque vector-ing by braking, these sys-tems working in parallel to provide immediacy of response and exploitable handling.

The EAD system auto-

matically redistributes engine torque between the rear wheels; and torque vectoring, by braking intel-ligently, applies precisely metered braking force to the inner wheels as neces-sary during cornering.

• The new F-type Coupé is the best-performing production Jaguar ever made

• Top model is the F-type R Coupé, its 404kW/680Nm 5.0-litre V8 supercharged engine enabling accel-eration from 0-100km/h in 4.2-seconds, and a top speed of 300km/h (limited)

• The F-type R Coupé features Jaguar’s second-gener-ation electronic active differential which works in parallel with a new torque vectoring braking system to enhance agility and exploitable handling

• F-type Coupé is the company’s most torsionally rigid production Jaguar ever made.

At a glance

Jaguar claims the F-type Coupe is the best-performing sports car from the company.

GET MORE TODAY! SEE YOUR NEAREST MASSEY FERGUSON DEALER.

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46 MACHINERY & PRODUCTS / RURAL TRADER

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Feed mixing brings better performanceAN NDE feed mixer is said to be helping a Waikato dairy farmer raise produc-tivity.

Ben Cameron milks 360 cows on a 110ha near Mor-rinsville. In two recently built Herdhomes he feeds his cows supplements through winter.

Feeds like PKE and other supplements are new to Cameron: he began only a few years ago feed-ing supplements other than maize silage, which was fed onto the paddock.

Further supplementa-tion started when he built the cow housing.

The structures helped cut feed waste but he soon noticed the animals took longer than he preferred to eat the supplements.

Cameron feeds a mix-ture of maize silage, palm kernel with hay or straw being added to the mix when conditions are overly wet. Feed was initially put on the pad in layers using a silage wagon.

Laying down the dif-ferent layers took three to six loads but this paled in comparison to the time it took for stock to eat the supplement.

As stock were able to eat through the differ-ent layers, picking out the parts of the mix they wanted, Cameron says it took all day for them to eat through the feed available with bits left over.

This became espe-cially noticeable during the drought of 2012-13 when there was no pasture to feed stock and they needed

to rely completely on sup-plement.

Last year at the Waikato field days Cameron bought an 18m3 NDE mixer from Giltrap and was impressed with the results saying it not only made distrib-uting feed faster, it also improved the consump-tion and palatability of the feed without any other form of additive.

Production on the farm went from 335kgMS per cow to 400-500kgMS per cow with the only major change being the addition of the mixer wagon.

Instead of being able to choose what they wanted, cows had to eat all the sup-plements which had been chopped and mixed with water to be made more palatable.

After the feed was

mixed cows didn’t only eat faster, they ate more, Cameron says. This was especially noticeable over the last two summers when the area suffered its second drought in a row - no noticeable rain from October the previous year till almost the end of autumn. This followed a deep nationwide drought in the 2012-13 season when the entire country missed out on rain for much of the summer.

In the summer of 2013 cows were eating 12kg/head/day of supplement as there was no pasture. However, 12 months later cows were eating closer to 20kg/head/day which all went either onto cow’s backs or into the vat.

While feeding out paid off in better condition

and more milk in the vat, Cameron says feeding out almost year-round wasn’t part of his normal strategy, instead being a tool to get through the summer.

To keep stock out of the heat Cameron left cows in the Herdhomes during the day, putting them out into paddock only during the night.

Grass growth shot away after the early autumn with the farm recovering

well.While Cameron uses

a 140hp tractor to pull his NDE mixer wagon, he says it is only to guarantee he can keep a handle on it when taking it from where feed was kept down to the cow shelters. “I needed the extra weight to keep from being pushed downhill. The tractor doesn’t get out of idle when I’m mixing the supplement.”

While initially a skeptic

on the benefits of mixing feed together Cameron is now convinced it helps stock’s digestibility. “If you mix it together they just eat more.”

“I could have left 20kg/head/day of feed on the yards with the silage wagon and they wouldn’t be able to eat it all; with the mixer wagon they hoover it up in six hours.”Tel. 0800 804 458 www.giltrapeng.co.nz

GARETH GILLATT

Ben Cameron


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Rural News 1 July 2014

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Transcript of Rural News 1 July 2014