Rural News 15 March 2016

STRUGGLING FONTERRA farmers must wait until March 23 to find out what more support they will get from the co-op.

However, farmers who already have an interest-free loan from the co-op should not expect much.

Fonterra chairman John Wilson

says at its half-year result announce-ment the co-op will say how it will assist farmers in “a small way”.

Last week, the co-op dropped its forecast milk payout for the season by 25c, from $4.15/kgMS to $3.90/kgMS. Combined with the forecast earn-ings per share range of 45-55 cents, this means a total forecast available for payout of $4.35-$4.45/kgMS. This equates to a forecast cash payout of

$4.25-$4.30/kgMS for a fully shared-up farmer after retentions.

Wilson says the drop in payout is the last thing farmers want to hear in this challenging season.

“At times like this the business needs to do everything it can to drive every last cent back to farmers.

“Management is focused on reduc-ing cost and generating cash right across the business. The continuing

lift in financial performance and our balance sheet strength will provide opportunities to support our farmers’ cashflows. We will provide an update on this with our interim results on March 23,” says Wilson.

Fonterra farmers are also putting the co-op on notice.

Shareholders Council chairman Duncan Coull says farmers now need

RURALNEWS

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MARCH 15, 2016: ISSUE 603 www.ruralnews.co.nz

FLYING HIGH!Way To Go Heliservices pilot Matt Cruickshank flies his helicopter along the top of farmer Scott Rickett’s crops, near Oxford, North Canterbury.Many arable farmers in the region are doing aerial spraying this season, to combat regrowth encouraged by the rain in January and limit crop damage prior to harvesting. - Photo Richard Cosgrove

Help on the way?

TO PAGE 4

SUDESH KISSUN

[email protected]

TO PAGE 9

STRESS TEST

THE RESERVE Bank will release updated stress analysis of the dairy sector this week.

But even the worst case scenar-ios pose no threat to bank stabil-ity, Reserve Bank governor Graeme Wheeler said, when he reduced the official cash rate (OCR) by 25 basis points to 2.25% last Thursday.

The outlook for global growth had deteriorated since December due to weaker growth in China and other emerging markets and slower growth in Europe, he said. Domesti-cally the dairy sector faces difficult challenges, but domestic growth was supported by inward migration, tour-ism, construction and accommoda-tive monetary policy.

“There are many risks to the out-look. Internationally, these are to the downside and relate to the prospects for global growth, particularly China, and the outlook for global financial markets,” he said.

The dairy sector was among the main domestic risks which also included a decline in inflation expec-tations, the possibility of continued high net immigration and pressures in the housing market.

Wheeler said there was no ques-tion that dairy was a challenging sector -- particularly for dairy farm-ers. Whole milk powder prices were down 60% since February 2014.

The “dynamics were difficult

PAM TIPA

[email protected]

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ISSUE 603www.ruralnews.co.nz

SHEEP AND beef farmers, especially in the South Island, are going to take a substantial hit in their incomes this year as lamb prices weaken.

In its mid-season update, Beef + Lamb New Zealand (BLNZ) says the average farm profit before tax will be $82,400 – down 21% on last year.

But Canterbury/Marlbor-ough farmers are facing a drop of 51% to profit before tax of only $42,700. This con-trasts starkly with Taranaki/Manawatu farmers’ incomes estimated to be $109,500.

BLNZ’s chief economist Andrew Burtt says the drop in the South Island is due to the drought and the higher ratio of sheep to cattle. But the overall situation is simply due to weak lamb prices.

Six months ago BLNZ was predicting the average farm profit before tax would be $109,900 for 2015-16. How-ever, Burtt says those predic-tions were based on better lamb pricing conditions which have not eventuated – hence the $82,400 average.

The report paints a gloomy picture in its prediction that global economic growth will remain at the level of a year ago and that the re-balancing of the Chinese economy will con-tinue. It notes that the value of lamb co-products are expected to fall by 34%, reflecting lower prices for offal and skins.

Overall, sheep reve-nue drops 10%, reflecting a decrease in the lamb price and number of lambs sold. High inventories in China and more

domestic lamb available in the UK (resulting from a lift in UK lamb production and less UK exports to Europe) have depressed NZ frozen lamb export returns this season.

On the beef front the news is a little better. Despite inter-national beef prices being expected to decline this season, a softer $NZ will cush-ion against a drop in the aver-age return for beef and veal products.

Fewer sheep will mean lower wool production this season, but this will be offset by a 6.5% increase in the price of wool selling at auction.

Sheep numbers are 29.5 mil-lion – down 1.1% on last season, driven by a drop in breeding ewe numbers. Sheep num-bers declined less in the North Island (1.3%) than the South Island (3.3%).

The complexities of the market, the weather and the exchange rate all come together at the farmgate and here the hard reality sets in. BLNZ has had to adjust its earlier forecast down and is now saying the average price a farmer will get for an 18kg lamb this season is $95 (525 cents/kg).

For beef the options vary, based on what happens to the exchange rate. However, at a rate of $US0.63, the average cattle price would be down 2% on last season.

As the numbers suggest, much uncertainty hangs over the sector, with the state of the Chinese economy a major concern. • The full report is available on the BLNZ website at: www.beeflambnz.com/economic-reports.

SHEEP WOES CONTINUE ON

PETER BURKE

[email protected]

Wool wows themYOUNG DESIGN and architecture students who spent a weekend in a woolshed in the central North Island have gone away ecstatic about wool, determined to use it in their proj-ects when they go into the workforce.

The NZ Campaign for Wool arranged for the nine students to visit Ngamatea Station, near Taihape, where they spent time with wool experts. They also got around the sta-tion to get an understanding of the wool pro-duction cycle.

The station runs 40,000 sheep and pro-duces 180,000kg of strong wool every year.

Gaylene Hoskings, who arranged the trip, says some of the students had farming back-grounds, others had none.

One objective was to make the students advocates for wool and to encourage their

colleagues to specify wool in design projects. She succeeded.

Comments from the students included:- “I didn’t realise how aesthetically versatile it

is. There are so many scientific reasons why wool works so well but at its core it is simply a beauti-ful thing.

- “It fascinates me that wool protects a living animal but plant fibres don’t; this is why it works so well to protect us in our built environments.

- “The fact that wool absorbs and neutralises harmful volatile organic compounds is so inter-esting. Especially when synthetics are advertising low VOC levels and we have a fibre that actually neutralises them.”

Last year, the Campaign for Wool pro-moted the product to school children.

– Peter Burke

Pass it on – FedsFEDERATED FARMERS has called on banks to pass on interest cuts to customers.

Reacting to the Reserve Bank’s decision to cut the official cash rate (OCR) by 25 basis points to 2.25%, last week, the farmer lobby called on banks to move quickly.

“It’s now up to the banks to pass this cut on to mortgage holders, and we urge them to do so on behalf of all New Zealand farm-ers,” Feds president William Rolleston said.

“Farmers’ cashflow is tight at the moment, particularly in the dairy sector and anything that can ease the pressure on their bottom line will help get as many dairy farmers as possible through the cur-rent season.”

Rolleston added that the OCR drop should also take pressure off the NZ dollar, which he says is vital for farming sector profitability.

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4 NEWS

their co-op to drive the business hard, execute strategy and deliver cash to them.

“In essence, farmers want to see the full benefits the coopera-tive model offers and we will all be watching the March interim results with great interest.

“This environment is placing added personal stress on farmers so it’s imperative we keep in touch with our neighbours, friends and families, and all support each other where we can.”

Federated Farmers Dairy chair-man Andrew Hoggard says more and more farmers will be feeling the pres-sure.

“ This cut, not unexpected given the string of low auction prices, means we need to be even more pro-active in budgeting and scenario planning, and make the most of the support available from DairyNZ, accountants and farm advisors.”

Fonterra says difficult conditions in the globally traded dairy market have put further pressure on the fore-cast.

The co-op is forecasting its NZ milk production to be at least 4% lower than last season as farmers respond to the low prices by reducing herd size and feeding much less sup-plementary feed which is expected to affect autumn production.

Supply v demand

FONTERRA CHIEF executive Theo Spierings says dairy exports and imports have been imbalanced for the past 18 months.

He blames this on European produc-tion increasing more than expected and lower imports into China and Russia, the two largest importers of dairy.

“The timeframe for a rebalancing has moved out and largely depends on pro-duction reducing, particularly in Europe,

in response to these unsustainably low global dairy prices. The long term fun-damentals for dairy are positive with demand increasing at over 2% a year due to the growing world population, increasing middle classes in Asia, urban-isation and favourable demographics.

“Our forecast is based on no signifi-cant changes to either supply or demand globally before the end of the year. How-ever, a reduction in the supply available for export before then could mean prices recover earlier than currently expected,” says Spierings.

Venison a bright spot on horizonDEER FARMERS are enjoying the best venison prices in four years with the schedule up 11% at the spring peak on the year before.

It’s mainly currency driven, Deer Industry NZ (DINZ) chief execu-tive Dan Coup told Rural News. But increased demand particularly in Europe is contributing.

At $8.63, the spring peak of the 2015 veni-son schedule was 11% higher than 2014 and the highest since 2011. The average stag venison schedule now stands at 728c/kg, compared with 630c/kg at the same time last year – an increase of 16%. This reflects an 11% currency gain and a 5% market gain.

“Venison prices peak each year in spring in response to demand from traditional game meat markets in Europe,” says Coup.

“Demand for chilled venison during the 2015 season was solid, with air freight shipments con-tinuing up to Christmas.”

Coup says the New Zealand dollar has weak-ened significantly for a variety of reasons vs the euro, and the market has improved.

“Europe, where we sell most of our venison, has

had serious austerity over the last eight or so years that has hurt us badly, but they are starting to get their heads above water in some places.

“I wouldn’t say it is all honky dory but they are starting to recover which helps with demand. But the currency is the single largest factor.”

The industry is also trying to create new demand in new places.

“Part of that trajectory is demand that is a bit dif-ferent from the tradi-tional seasonal stuff out of Europe. That is all about timing.”

A key objective is to build year-round demand for chilled venison at pre-mium prices in new mar-kets and new segments of existing markets. It is also the focus of the Passion-2Profit strategy, a Primary Growth Partnership pro-gramme between DINZ and the Ministry for Pri-mary Industries.

“At present, the larg-est year-round market for chilled NZ venison is North America, with 600 tonnes worth $NZ12 mil-lion sold there in 2015,” he says.

“Sales there have been under the Cervena pro-

motional banner since the appellation was launched in 1993. This year we will be [doing more] in new Cervena markets like the Netherlands which are part of P2P, as well as existing Cervena markets like North America which are not.”

Digging a little deeper into the figures, Coup says the market price gains reflects a 12% increase in the per kilogram value of chilled venison exports.

“Chilled exports made up 17% by volume and 30% by value of total ven-ison exports in 2015,” he says. “The total value of chilled exports increased by 10% while the volume dropped by 1%. Overall venison exports dropped in volume by 5% to 15,035 tonnes.”

PAM TIPA

[email protected]

Deer Industry NZ chief executive Dan Coup.

SUDESH KISSUN

[email protected]

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SOE confirms move from dairyDEER MILKING, manuka honey, sheep milking and blueberries are among Landcorp’s options for land it had planned to convert to dairy farms.

The state farmer confirmed last week it was revising its land use at the Wairakei Estate, near Taupo. It has signalled it wants to reduce its dependence on dairying there, part of the Upper Waikato catchment regarded as ‘sensitive’.

The decision to downscale follows detailed review and discussions with its partner in the development, Wairakei Pastoral.

Landcorp is already running a pilot sheep milking operation on the land and is talking of doubling and possibly trebling this.

Chief executive Steven Carden says the company will continue its dairy farming but not on the scale originally planned. It will run its dairy support operation on the estate and not move cows to other farms.

Carden says the strategy is to connect the food they produce on their farms with high spending consumers worldwide, offering them produce bearing its new Pamu brand. This requires exceeding consumers’ expectations about how that food is produced, for example in the standard of care for animals, the people who work on the farm and the environmental impact of producing that food.

“Landcorp’s new direction includes a focus on developing new products such as sheep milk. These are niche and premium, and require new farm systems that

meet growing consumer expectations of their food,” Carden told Rural News. “We would like the Wairakei Estate to become the centre of such innovation as Landcorp looks to expand in these new areas.”

He says the company would like to produce a ‘basket’ of different high-value foods and is scrutinising consumer trends and the latest information on nutrition as a precursor to developing new products.

Carden says emerging trends suggest that meat may become a secondary part of a meal and Landcorp will look to see what this might mean for the business. But animals will remain at its core.

Carden says an environmental reference group Landcorp set up to provide it advice has played a part in the decisionmaking process. The business had already been moving in that direction and the reference group helped reinforce its thoughts.

Landcorp also plans to build covered stand-off areas on the Wairakei Estate for wintering cows, to protect them and pasture and to produce year-round milk for its customers.

“This will also protect against over-grazing in the summer, improve the survivability of pastures, provide shade for cows and ensure we can capture more nutrients at key times of the year by preventing it from leaching into waterways,” Carden says.

When the project began there was not the same awareness and knowledge as now of environmental impacts.

“We’re acutely aware that we do not want to create any legacy issues for sensitive

PETER BURKE

[email protected]

water catchments in the communities we operate in, anywhere around the country,” he says. “The expectations that consumers and the public

in general have about how their food is produced are changing quickly, so we need to continually rethink our farming practices to keep

up with them.” Carden believes the

decision to scale back dairying plans makes environmental and economic sense.

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6 NEWS

HORTICULTURE HAS “the brightest future of all” in New Zealand’s pri-mary industries, accord-ing to Mike Petersen, special agricultural trade envoy.

Petersen travelled to India in November with Pipfruit NZ looking at more access for growers. He says there and around the world you could see the demand for apples, particularly because of a small harvest out of the US.

“Have no fear, agricul-ture, horticulture, agri-food -- whatever you want to call it – here in NZ is extremely bright. The fun-damentals are extremely strong.”

Many people had been talking about the need for greater value in the agri sector for a long time. But many companies operat-ing out of NZ are export-ing higher value products than many people give them credit for, Petersen says.

“But there are real bar-riers in getting added value products into mar-kets around the world.”

Tariffs for example: if you want to send a tonne of beef into Korea the tariff is 40%. Beef is priced at about US$5500/t but a 40% tariff adds about US$2200/t before the importer can start sell-ing the beef. Petersen says while the importer pays the tariff – and actu-ally writes the cheque – the producer also pays

towards that cost.He says all the studies

show that the benefits of reduced tariffs into mar-kets are shared equally between the producers and the consumers of a product.

The China Free Trade Agreement (FTA) gave us first mover advantage, though the recent Aus-tralian agreement now has some better access arrangements for some products, Petersen says.

“But we still had first mover advantage. We have had the opportunity to build relationships and partnerships in China that will stand the test of time.

“When we talk about an upgrade it is impor-tant to keep us ahead of the pack. I have no doubt we will see some upgrade,

based on the history, trust and relationship we have developed since the FTA was put in place.”

Petersen believes the Australia-NZ FTA is among the best. And in 12 countries in SE Asia we effectively have tariff-free access into most markets, dropping down over time.

He is big on these SE Asian economies.

“We are seeing many

examples – Vietnam, Indonesia or the Philip-pines – and many other SE Asian nations where there are massive opportunities and they are the right size for NZ companies.”

Petersen has pushed hard for the TPP (Trans Pacific Partnership) because of the need to start looking east again across the Pacific.

“We’ve got to try to round ourselves off across Asia Pacific….TPP does that and some other really good things.”

He says it would have been crazy for NZ to have walked away from the deal.

“Most of the coun-tries in TPP don’t want NZ there because they know we’re competitive, they know we have quality

products, that we want to export, that we have more cross border trade than the other countries. The other 11 would say ‘bye-bye NZ’…. We are actually happier now.

“[If NZ had walked away from the TPP deal] we would effectively have walked away from those markets forever – 40% of the world’s GDP and the fastest growing region on Earth. All those other countries would then have gained the benefits we had walked away from. We would not then have been competitive with any of those other countries in beef, dairy, horticul-tural products and wine.”

In his view the TPP will go through.

PAM TIPA

[email protected]

MIKE PETERSEN will be in Europe this month looking at the Europe free trade agreement.

They are pushing hard for the Europe FTA and the Europeans are also very keen, he says.

“There will be a long series of discussions but the benefit would be another 600 million people, largely affluent consumers. Everyone says Europe is in the doldrums but all we were looking for is a few million of the wealthy they have plenty of to buy our product.”

An India deal is being sought and he supports the need to make sure we have access to Russia sometime in the future.

NZ also wants to push hard on ‘domestic support’ via the World Trade Organisation (WTO).

Trade deals lighting up New Zealand’s brighter future

EUROPE NEXT

NZ special trade envoy Mike Petersen.

@rural_news

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NEWS 7FOOT IN THE DOORFACING CRITICISM on the deal for dairy in partic-ular, Trade Minister Todd McClay said TPP is a free trade agreement in that it frees up trade.

“We were ambitious particularly in the area of dairy and would have seen greater liberalisation and better access for New Zealand dairy farmers into these markets,” he said at the Auckland TPP road-show.

“We didn’t achieve all that…. But we need to remember dairy is still one of the most protected and regulated industries in the world.”

After all these years they are starting to get better access to the US, the world’s largest economy, for dairy and other produce.

“If you are asking whether we think that is it and we don’t have to worry about dairy and other indus-tries around the world, the answer is no. NZ will always argue for greater liberalisation in all these areas.”

But if they don’t go into the TPP agreement, restrictions would be higher on all exporters. Ninety five percent of our exports will be covered by free trade without restriction when TPP enters into force.

McClay says they will use the whole of this year for the parliamentary stage of the process. Previous trade agreements have moved through Parliament much faster.

This was NZ’s largest and most beneficial agree-ment and had two years to enter into force, he said. They have time to work through the legislative stages, which are likely to be quite technical particu-larly on the copyright issue.

TPP delivers big time says negotiator

JAPAN DECLINED to eliminate its tariff on beef, but cut it from the current 38.5% to 9% under full implementation of the Trans Pacific Partnership (TPP), New Zealand’s chief trade negotiator David Walker says.

“That is the lowest tariff NZ has agreed with anyone in a free trade agreement,” Walker said at the TPP roadshow in Auckland

“It will help even up for our meat exporters the current disadvantage they are suffering in Japan against their Australian competitors who already have a bilateral agreement with a lower tariff applying.

“That is a good deal for our meat exporters even though we would have preferred the tariffs were eliminated.”

Walker cited the Japan beef

example as a good outcome for the primary sector, even though dairy and beef were our only export goods which did not achieve full elimination in tariffs in the TPP deal.

The TPP roadshow heard that the deal will take about two years to implement. To proceed, the deal basically needs to be ratified by the US and Japan through their domestic processes.

Walker referred to criticism

that we did not achieve all in the negotiations that we set out to achieve, particularly in dairy.

But even in dairy there are significant outcomes which will benefit exporters, he said. Dairy modelling shows a reduction of $96 million annually in export tariffs when TPP is fully introduced. For meat there is a saving of $84m.

“Those two areas – meat and dairy – were where full tariff elimination was not achieved,”

he said. “On infant formula into the

United States, Canada and Mexico – a high value product a number of NZ dairy companies are looking with interest at – the tariffs will be eliminated.

“There will also be a range of new preferential quotas opened up into the US, Canada, Japan and Mexico markets. At current world prices those quotas are worth a total of about $300m at entry into force and they grow to $600m after 15 years of new preferential quota access.

“Everything else – all our tariffs for originating exports – are eliminated under this agreement if it comes into effect and if NZ is part of it.”

About 50% of those tariff reductions take effect on the first day of entry into force.

PAM TIPA

[email protected]

TPP lead negotiator David Walker (left) and Trade Minister Todd McClay.

@rural_news


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8 NEWS

RURAL CONTRACTORS say Fonterra’s delaying payment to suppliers sends a terrible message to farmers.

Rural Contractors NZ (RCNZ) president Steve Levet says this is not an action an industry leader like Fonterra should be undertaking

“It sends a terrible message to farmers -- that it is ok to delay paying suppliers -- and that is not on,” Levet says.

“We all understand the dairy sector is undergoing a very tough period. But this should not be used as an excuse to not pay contractors in a fair and timely manner.”

Levet believes dairy farmers, many of whom will lose money this year, would not approve of such action and he does not want them taking a similar stance towards their own suppliers.

“Dairy farmers on the whole are good and fair people, but when Fonterra takes a stance like this [the farmers] may think it is ok for them to do the same.

“I can tell you rural contractors are hurting just as much as dairy farmers. The last thing we need is for people to delaying paying us or trying to dictate pricing. We all have to live.”

Levet has called on dairy farmers to pressure Fonterra to treat its contractors fairly.

A TERRIBLE MESSAGE

That’s just business – Fonterra

FONTERRA SAYS its deci-sion to delay payments to some creditors by up to 90 days is nothing new and suppliers should “align”

themselves to it.Only 2000 of its 18,000

suppliers are affected, says chief financial officer Lukas Paravacini.

“We are aligning to a payment condition that always existed, and people

SUDESH KISSUN

[email protected]

should expect in [this time of low payout] to very quickly align.

“We are very conscious of the role we play in the community beyond our farmers. This [slow pay-ment] touches roughly 2000 of the 18000 suppli-ers; we are not touching 16,000 of them because we understand the impact that will have.”

Fonterra has extended by two months the time it takes to pay suppliers, from 30 to 90 days, saying this matches what it does in other countries.

It has also asked some suppliers to cut their charges by up to 20%.

A backlash by some businesses has prompted the Green Party to ask the Government to intervene; the party accuses Fonterra of using its size to bully its suppliers and contractors

in rural areas.Meanwhile, Fonterra

will give an update of its debt level on March 23 when it presents half-year results.

Last year the co-op said its gearing ratio rose to 49.7% from 42.3% a year earlier, but was 46.4% when adjusted for a $900 million advance payment to farmers. The co-op for-merly aimed for a gearing ratio of 40-45%.

Paravacini says the co-op spent heavily on its New Zealand opera-tions last year. It has since decided not to increase its debt levels.

“We made it clear in our Q1 results that we expect gearing ratio to go to 40-45% by the year’s end.”

He says Fonterra remains a very sound business.

Lukas Paravacini

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THE DEER industry hopes its good prices will stem the decline of the national deer herd and even cause a slight increase, Deer Industry NZ chief executive Dan Coup says.

Deer may offer a good alternative to dairy support in the current economic climate.

Coup says the deer herd has been declining for at least 10 years. As with other drystock species, a steady drop has persisted because of expanding dairy support.

“That’s been the story of the last few years but that is obviously changing a bit at the moment.

“This declining herd concerns us because at some point your scale of efficiency on things like processing, market-ing campaigns, research and having an office in Welling-ton all gets marginal.

“Shrinking forever is not a good strategy. We would like to get to the point where people are significantly confident in the future of deer that they go back to growth. Not for the sake of it but to preserve our scale.”

It is stability the industry needs, not big growth swings.“We are not out there selling it to people but we want

existing farmers to feel good enough about deer that they stop getting rid of them, which is what has been happen-ing.

“This season’s prices are pretty reasonable consider-ing the many options they have for their pasture at the moment. The deer at these prices are a reasonable choice.”

Beef is good as well but considering the dairy and the lamb options, farmers are probably happy if they have deer at present, he says.

Hinds made up nearly 55% of last year’s venison kill, which means the national breeding herd and the annual venison kill will continue to decline. The total kill in the 12 months to November 30 (stags and hinds) was 383,740, down 7.5% on the same period in 2014.

“One reason for the high proportion of hinds in the kill is that some farmers are retaining stags to rebuild their velvet herds, in response to a five year run of firm velvet prices,” Coup says.

“All the same, it would be good to see hinds making up a little less than 50% of the total. This would result in a small annual increase in the hind herd, which has to be for the long term good of the industry.”


NEWS 9

internationally” with prices still up overseas, production growth in the US and Europe and the Russian embargo.

The Reserve Bank will release its updated report on stress in the dairy sector in its bulletin this week. Wheeler said they looked at a number of scenarios. After a lot of work with DairyNZ, analy-

sis shows the average break-even price is about $5.30/kgMS.

Under the most stressed sce-nario, they modelled the current price staying there for the next three seasons. Farm prices would fall about 40%. Under that worst case model, 44% of the dairy debt would be impaired and the default rate would be 10-15% of dairy lending.

It is a highly stressed scenario, Wheeler said. Agricultural lend-ing is 10% of bank lending and a lot is dairy.

“Do the banks have the capital reserves to accommodate that? We believe they do.”

Wheeler said China is building up a number of imbalances that are serious but they don’t see a “hard landing” there soon.

“If China had a significant and prolonged deflation it would inev-itably spread deflation around the world,” he said.

Any future cut, or more than one cut, will be based on data.

There were many risks to the outlook but New Zealand was in a better place than three years ago when it had deficits and the pro-jection of debt increasing, he said.

No threat to bank stabilityFROM PAGE 1

Hopes that good prices will stem herd decline

PAM TIPA

[email protected]

“We are not out there selling it to people but we want existing farmers to feel good enough about deer that they stop getting rid of them, which is what has been happening.”

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10 NEWS

Tectonic shift erodes Fonterra’s global influenceFONTERRA DOESN’T believe it will take much to change the global dairy market, but it expects very little change this year.

And therein lies the problem con-fronting the co-op: the days are gone when it could announce a 4% drop in milk production that spooked the world and lifted dairy prices. The abil-ity of Fonterra, the world’s largest dairy exporter, to influence prices has been overshadowed by world economic issues, geopolitical crises and phenom-enal milk production.

Last month, Rabobank analyst Thomas Bailey told the Federated Farmers Dairy council conference in Nelson that historically when NZ milk production dropped, prices shot up. But not this season: despite analysts’ forecast 10% drop in milk production prices kept falling.

Bailey noted Rabobank was forecasting NZ milk production to be down at least 5%.

“But prices did not respond; they continued to drop… because [buyers] knew they could just go to Europe to get that milk now. NZ appears to have temporarily lost the advan-tage of influence on prices.”

Bailey says NZ’s inability to influence prices is one of five “tectonic shifts” happening in the dairy indus-try. Others are the growth in Europe’s milk production, demand slowdown in China and Russia, low oil prices and growing appetite for value added dairy in the US.

Last week Fonterra dropped its milk forecast payout by another 25c/kgMS, blaming imbalance in global demand and supply.

Fonterra chief executive Theo Spier-ings alluded to his ‘two buckets’ theory. He says in one bucket are things Fon-

terra can control – shifting significant milk volumes into higher value added products, keeping costs down and focusing on capital spending and cash-flow.

“All across the business there’s a high focus on these things,” he says.

The second bucket contains what Fonterra cannot control. On the supply side, milk production in Europe is still growing, with limited farmer reaction to lower prices.

Spierings points out that the EU tends to be on longer contracts than

Fonterra’s three-month GDT contracts.

“We can’t really talk for European farmers; we have done some analysis and the longer contracts take more time for milk prices to go down. Potentially, every farmer will react to price signals and that will kick in in Europe as well.”

There is some good news on the US dairy front: the US domestic market is doing well, resulting in more local consumption and less exports.

However, the demand scenario remains fuzzy: China is recovering but more more slowly than Fonterra expected, says Spierings.

“We see growth but not the historic double digit growth; it’s not there, it is growing at 4-5%.”

Russia still has a ban on dairy imports from western countries and demand there has also been hit by lower oil prices.

“In oil producing countries we are seeing stable or lower imports due to low oil prices,” Spierings says.

Add to that the conflict in Syria and the recent lifting of sanctions on Iran, and the uncertainty continues.

So what does Fonterra expect to happen over the next nine months?

Spierings says whole milk powder, hovering around US$1900/tonne, will stay around those levels.

“The price is unsustainable so supply reaction will have to take place,” he says.

“Our forecast is based on no sig-nificant changes to either supply or demand globally before the end of the year. However, a reduction in the supply available for export before then could mean prices recover earlier than currently expected,” says Spierings.

Whatever happens over the next nine months in the global markets, only one thing is sure: it’s out of Fon-terra’s hands.

SUDESH KISSUN

[email protected]

Rabobank’s Thomas Bailey. Theo Spierings

seen livestock mistreated?

mpi.govt.nz/animal-welfare


NEWS 11

How do you like them apples?

SEVERAL YEARS of strategic planning and this season’s excellent weather has the apply industry looking at a “spectacular” $700 million record crop this year.

Last year’s crop was about $620m.

Pipfruit New Zealand chief executive Alan Pollard told Rural News it is like the perfect positive storm, all coming together nicely this year.

But this season’s success has been no surprise, he says. It has been the result of really hard work and good investment over the last seven to 10 years. Key inputs are professional development of varieties the world wants, suitable varieties for NZ, the world’s best-tasting fruit, world-leading technology and sophisticated marketing.

“The marketers have much better information and understanding of what people are looking for in markets, they have very good channels to markets and they are using them very well,” Pollard says.

And NZ is the best place in the world to grow

applies.This season has seen

four weeks of perfect apple growing weather, so the record crop is looking “spectacular” in fruit size, quality and flavor.

“We are already number-one for our international competitive edge and this season is going to be exceptional.

“Global demand is for bigger apples and over this past month NZ’s apples have been feeding off the perfect growing conditions with plenty of sunshine.

“In January we forecast NZ would produce a record export crop of $700m. We were expecting, given the relatively cool spring, that trees would grow slightly smaller apples.

“But a month of perfect growing conditions has seen fruit really come on; it’s going to be an outstanding season and all our growing regions will prosper.

“It’s great news for our apple growing regions of Hawke’s Bay, Nelson and Central Otago, Gisborne, Waikato, Wairarapa and South Canterbury.”

The US in particular likes big apples and this year their crop has been

PAM TIPA

[email protected]

small, giving opportunity to get the larger apples into market there, Pollard says. In Asia they go for taste.

The industry still has some concerns about the availability of enough labour for the bumper harvest, says Pollard.

The season has been later because of the

weather, meaning the apples need to be picked in a shorter time.

Sufficient labour is now probably available for the early harvest, but they are concerned about the second pick.

The industry is working hard with government agencies to make sure they have

enough people. It is working with Ministry for Social Development and Work and Income mainly to get Kiwis into work, in addition to temporary overseas workers under the Recognised Seasonal Employment (RSE) scheme.

PROFITABLE PACKER

KIWIFRUIT PACKING and coolstore operator East-Pack has announced $8.1 million net profit after tax for 2015 – 35% up on budget.

A budgeted profit of $6 million had been indi-cated to grower shareholders early this year. A 5 cent per share final dividend will be paid.

The 2015 profit is a major improvement on the previous year when the company reported its first loss in 37 years.

The profit turnaround was driven by increased fruit volume, improved asset use and a strong oper-ating performance.

In 2015 overall EastPack supply increased 33% as Gold3 continued to lead the recovery from Psa and Hayward orchards achieved record productivity.

Board chairman John Loughlin noted the finan-cial result confirms the company is in a very strong position.

He says after last year’s result the board was determined to return EastPack to profit.

Fruit supply volume industry-wide is expected to significantly increase again in 2016.

Chief executive Hamish Simson says this will put even more pressure on the post-harvest sector’s capacity and ability to maintain fruit quality as the shipping period gets longer.

The 2016 harvest season is starting now and East-Pack expects to pack 40 million trays.

@rural_news



12 NEWS

A PROUD MOMENT FOR AWARDSAHUWHENUA TRUST management committee chair Kingi Smiler hailed the success of the field day.

He says it was very special in light of the 83-year history of the trophy.

“It’s the first time we have had finalists from the South Island. As well as Ngai Tahu, we have the Rakaia Incorporation from Ashburton, so it’s a proud moment for everyone,” he says.

Smiler believes Maori farming has been growing stronger and Ngai Tahu is a good example of that.

“The tribe started development in 2012 and has made amazing progress over three-four years devel-oping the pastures and irrigating the land,” he said. “Its farms are already performing at a high level and I have no doubt it will get stronger and stronger.”

PETER BURKE

[email protected]

Ngai Tahu sets the standardNGAI TAHU Farms Ltd chief executive Andrew Priest says all farmers should be embracing and adopting the sustainability measures his organisation is committed to.

Sustainability practices should not be regarded as a cost, but as a benefit, he says.

He was addressing a field day Ngai Tahu staged recently as a finalist in this year’s Ahuwhenua Trophy competition to determine the top Maori dairy farm in NZ. Ngai Tahu is one of three finalists.

Ngai Tahu’s farms Te Ahu Patiki and Maukatere, located near Oxford, Canterbury, were formerly forest, now cleared. The farms are irrigated from the Waimakariri River.

At the field day about 300 people heard that Ngai Tahu is moving to ensure its dairying farming is sustainable. Its projects include placing lyscimeters around the property to accurately measure environmental factors.

“This is based on a concept of tikanga (culture) which says you can do things well and you can do things right, but there is difference

between doing that and the ‘right thing’,” Priest told Rural News.

“What I mean is we could do our farm environmental plans and we could meet our consents. But we want to go further than that; we want some of these projects onfarm to go above and beyond what we are required to do.”

He believes if the wider dairy industry adopts the sustainability measures developed by Ngai Tahu it will be more competitive and will resonate well with international markets and make the NZ sector more competitive.

Irrigation is the key to the success of Ngai Tahu’s farming operations near Oxford, especially given the land has only recently been converted to dairying and is of poor quality.

Ngai Tahu Farming Ltd chair Gill Cox referred to the business’s profitability, achieved responsibly. It takes marginal land and turns it into productive land. Ngai

Tahu people farm the land as good corporate citizens for NZ and helping NZ’s productivity.

“We harness the water, use it responsibly, treating it as having real value and being a scarce resource we use in the most efficient way,” Cox explains. “Many people, especially those from urban areas, see irrigation water linked to dairying only, and dairying has been linked to the word ‘dirty’. But irrigated land [is not used only] for dairying.”

Ngai Tahu has a lot of land, much of it unsuitable for dairying. For example, it has 30,000ha in high country stations and a new

block it’s developing at Balmoral, likely for beef farming. Long term Ngai Tahu will look at horticulture and cropping options, Cox says.

“[We respect] the land, using it productively for the benefit of Ngai Tahu and other people and for the overall benefit of the NZ economy.”

ABSOLUTELY PROUD!That’s how Sir Mark

Solomon, the kaiwhakahaere (leader) of Ngai Tahu responds to his iwi becoming a finalist in this year’s Ahuwhenua Awards.

He’s been a staunch ‘nagger’ to get his farming people to enter the competition and says becoming a finalist is creating a great deal of pride at Ngai Tahu.

Solomon says his organisation is striving hard to prove they have the best farming practice in NZ.

They are making great use of new technologies, and are educating their young people.

“We see education as the solution for the future. Our children have to be educated to lift their skill base,” he told Rural

News. “I don’t think it’s possible to continue as a first world nation based on a workforce of labourers.

“The whole nation has to lift its game and go to a new level. We don’t want Ngai Tahu people to be just the milking hands; we want then to be the managers and running the farms,” he adds.

NAGGED INTO WINNING

Sir Mark Solomon

Andrew Priest

Cows proudly carrying Ngai Tahu name.

She claims the lobby did not use funds to educate the public, as required to maintain its charitable status, she said.

SAFE’s most recent financial reports show virtually all its funding

-- just over $1 million – comes from donations. If its charitable status was revoked, it would have to pay tax on its donations.

SAFE executive direc-tor Hans Kriek says the claims were unfounded

and he was not worried about losing charitable status.


NEWS 13

MPI LAYS CHARGES

DIRTY TRICKS played on the farming sector by an animal rights lobby could cost the group its charita-ble status.

SAFE has criticised the dairy industry via its highly publicised cam-paigns targeting mistreat-ment of bobby calves.

Last year, it pub-lished a scathing ad in UK newspaper The Guard-ian, describing the “shock-ing treatment” of calves in the New Zealand dairy industry.

In response, outraged farmers described the campaign as “emotional scaremongering” and said it was an attempt to undermine NZ’s economy.

A petition started by Gore dairy farmer Bridget Lowry has reached nearly 11,000 signatures, call-ing for SAFE’s charitable status to be revoked.

The petition has been presented to the Depart-ment of Internal Affairs and is being treated as a formal complaint, which could lead to its status being reviewed. A spokes-woman said the depart-ment had requested information from SAFE about its current activities.

Lowry said she was sick of SAFE’s “slander against dairy farmers”, which she said unfairly portrayed them as cruel.

Charity status no longer SAFE?

Anti NZ dairy campaign advert run by SAFE in the UK Guardian last year.

MPI SAYS it has laid charges against an individual in relation to an investigation of animal welfare offences involving bobby calves.

The investigation began in September 2015 when MPI received many hours of footage containing alleged offences involving bobby calves in Waikato.

Charges were filed last week at the Huntly District Court under the Animal Welfare Act.

Deputy director-general regulation and assurance Scott Gallacher said the investigation had been care-ful, methodical and ongoing.

MPI says its investigators are actively pursuing other lines of inquiry. As the matters are under investigation it declined further comment.

www.ruralnews.co.nz

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14 NEWS

SHANGHAI PENGXIN says its future investment in the dairy industry in New Zealand is being thwarted by the rules laid down by the Overseas Investment Office (OIO).

President of Shanghai Pengxin Investments in NZ, Terry Lee, says the company is keen to expand its dairy and other farming interests, but the OIO – which approves land purchases by foreigners – is the stum-bling block.

He says the rules need to change and be clearer for investors.

Lee says many people misunderstand Shanghai Pengxin’s investment intentions and that there is no fear of the company taking over the country.

“This is a wrong perception about Shanghai Pengxin. There is no other Chinese company coming to NZ and buying dairy farms and we are quite small in percent-age terms, compared with other investors from Europe, America and Australia,” he told Rural News.

Lee says besides dairying his company has invested in real estate and hotels in NZ and is keen to build its relationship with this country.

“We believe NZ is a modern country with a good legal system and very well educated people. I hope, in time, NZ people will understand more about Pengxin and more about our strategy and our contribution to the local economy and society.”

Lee says part of its long term strategy is to look for partnerships and joint venture arrangements.

PETER BURKE

[email protected]

NO FOREIGN TAKEOVER THREAT

Mt Cook Station stays in Kiwi handsMOUNT COOK Station has been sold to a local couple who intend to farm it themselves.

The 2600ha high coun-try sheep station sits at

the head of the Tasman Valley in the Mackenzie Country and is bordered by the Tasman River and Lake Pukaki.

All tourists heading to the Mount Cook village drive past the station.

RICHARD COSGROVEEstablished by Scot-

tish migrants Andrew and Catherine Burnett in 1864, the station stayed in the family for 151 years. Donald ‘Mt Cook’ Bur-nett ran the farm for 69 years till he died in 2010 aged 95.

Burnett was well regarded in farming cir-cles as a sheep breeder and was the inaugu-ral winner of the Merino World Challenge Trophy in 2000.

He set up one of New Zealand’s first private hydro-electric power sta-tions in 1953 and helped with the installation of the famous Mackenzie sheep-dog statue by the Church of the Good Shepherd at Lake Tekapo.

After his death, his sister Catriona lived on the farm until she died last year aged 97. Neither Donald nor Catriona had children and the property was sold by the trustees of their estate.

The station’s terrain

varies from flat to steep hill country and varies in altitude 540-1000m.

Locals Alana and Clint Miles learned recently of their successful tender and will move their by April.

Alana grew up on a neighbouring station and Clint is a helicopter pilot at Tekapo.

Bayleys Real Estate agent Paul Brown said about ten tenders were received, mostly Kiwis and ex-pat Kiwis. Also tendering were ex-pats from America and Australia with NZ connections.

Brown said the tender process went smoothly and with much due dili-gence. Properties like this one had rarely remained in one family for so long and Brown said he felt privileged to help the trustees with the sale.

There had been calls for the Government to buy the property to keep it in Kiwi hands.

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NEWS 15

Event Day TimeLeamington Domain, Cambridge Saturday 19 March Registration from 8:30am

Lake Mangamahoe, Taranaki Monday 21 March Registration from 8.30am

Manfeild, Feilding Wednesday 23 March Registration from 8.30am

EA Networks Centre, Ashburton Monday 28 March Registration from 11.30am

Hamilton Park, Gore. (Southland Farmers Classic) Cycle event

Friday 1 April Registration from 8.30am

Farmers push for greater fitnessDAIRY FARMERS Neil and Glenda Gray are ready to swap the paddock for the tarmac as they prepare for the Farmstrong Fit-4Farming Cycle Tour. The Grays are among 20 riders preparing to join the cycle tour from Ngatea to Bluff from March 18 to April 2.

The tour and support-ing Farmstrong Challenge is to encourage farmers to think about the benefits cardio exercise can have on their overall physical and emotional wellbeing and how this can help with their work onfarm.

Glenda, a keen sports-woman, has recently suf-fered injuries that have slowed her down and severely affected her fit-ness.

“Cycling has been my saviour,” she says. “I enjoy getting off the farm and riding with a huge range of like-minded people.”

Neil, a keen rugby man and tramper, was drawn into cycling by his wife’s enthusiasm for the sport. It’s now an activity they enjoy together, getting them into the outdoors.

“It was an easy deci-sion to say ‘yes’ to tour organiser Ian Handcock

when he asked us to help promote wellbeing to other farmers.

“My family has farmed land in the Hauraki Plains for 100 years, and in the 30 years I’ve been in the agricultural sector I’ve seen big changes in farm-ing practices,” he says.

“Farmers these days are more stressed and face new pressures. To help overcome these challenges it’s critical that farmers place more emphasis on looking after themselves, the better to look after their family, and their business – in short, steps to live and farm well.”

Farm consultant Ian Handcock organised the tour following his research with Kelloggs.

“I thought we farmers were pretty fit, given we’re out and about all day – and some certainly are. But the increased use of farm machinery, and other fac-tors such as poor diet and stress, mean many of us are not in good trim and are at risk of serious ill-ness such as heart disease.

“Adding a jog, walk or bike ride every now and then can have a big dif-

ference on our physical health, and our emotional wellbeing too, and it gives us a chance to get off the farm.”

The Grays, Hancock and the rest of the Fit-4Farming cycling group will host five Farmstrong event days across the country. Local farmers, growers and anyone con-

nected with the primary sector are invited to take part in a small exercise challenge.

Farmers may also take part in the Farmstrong Challenge, a bid to get rural Kiwis to collectively clock up 4 million km of exercise by July 2. www.farmstrong.co.nz/chal-lenge

Neil and Glenda Gray.

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16 NEWS

TYPICALLY IT’S a clear, calm day in Waikato as the Spences arrive at a farm-er’s airstrip. John imme-diately readies his Fu 400 ZK CRF while Janet heads to the loader, getting ready for the day’s work. Yes, John flys the plane and Janet drives the loader.

Unusual? Yes. They are believed to be the only husband-and-wife pilot-loader driver combo in Australasia.

John’s love affair with aeroplanes began at age five when he crawled up a paddock on a farm, near Tirau, to watch a local top-dressing pilot in action. Come lunchtime – when the pilot and loader driver

slipped away – young John Spence climbed up on the aircraft for a closer look and he was hooked. When he left school in 1966 he set out to become an ag pilot. He first worked as loader driver, then got his commercial pilot licence and went looking for someone to train him as an ag pilot.

After several failed attempts in NZ, he headed to Australia where he got the necessary training flying Cessna 180s and Piper Pawnees. He then worked as a both a spray and topdressing opera-tor. That led to his other love affair: he met Janet, then managing a hotel in

Wycheproof, rural Vic-toria, and in 1993 the husband-and-wife team became a reality.

Today they compete against the big players in the industry such as Super Air and Whanganui Aero-work, owned respectively by the fertiliser compa-nies Ballance and Ravens-down. Spence says this is a far cry from the days when there were lots of small-medium size oper-ators such as Robertson Air Services, James Avi-ation and Fieldair, who were licensed to work in quite specific geographi-cal areas.

“Now it’s open slather and there is no such thing

as licensing areas. The two major fertiliser companies thought they would buy the aeroplanes because they felt the guys wouldn’t survive in the industry themselves,” he told Rural News.

“But I reckon this con-cept has been detrimental to the industry: it would have survived with entre-preneurial blokes with experience. There would have been normal culling, and this is why you need business-minded people in the industry.”

Spence says he’s one of the business-minded people who have survived the highs and lows of the topdressing industry –

here in NZ and in Austra-lia, where he worked for many years, running sev-eral successful businesses.

“If you are not busi-ness-minded you fall by the wayside and many blokes have. They are good at flying, but they

can’t run the business,” he says.

Spence attributes their success to the truly family nature of the business, and while not compro-mising on safety they keep their expenses to a mini-mum.

“We run everything ourselves: I do the flying and Janet drives the loader. I’m a bit differ-ent in my thinking from most,” he explains. “I have learned from old masters – some very suc-cessful people in the ag

John and Janet Spence are unique in the agricultural aviation scene in New Zealand. Their owner-operator business is one of few remaining, and their profitable business model is very different from any others. Peter Burke caught up with them at an airstrip near Tirau, South Waikato.

Husband and wife team’s special love of Ag Aviation

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Husband and wife team’s special love of Ag Aviationindustry. The key is not what you do in a day, it’s what it costs to do it. The guy doing lots and lots of tonnes, he’s probably got to do that because he’s got lots of overheads such as wages, etc.

“We don’t ferry the aeroplane around much. We leave it sitting on air-strips and until recently we camped a lot; we still do some, but not as much we used to with the cara-van.”

Spence says ferrying

an aeroplane costs money and restricts its productive hours -- at least $20,000 lost income in the course of 100 hours.

For Janet the tran-sition from hotelier to loader driver was good; she likes the open spaces. But her initiation into the job wasn’t like most other loaders drivers who usu-ally get three months training.

“I was given half an hour’s instruction and told to do it, and I did it,” she says. “I had no mechanical background, but I do know the workings of the equip-ment and when to stop and turn the things off if a hydraulic hose bursts or something like that hap-pens.”

Janet describes her-self as “the understand-ing one” who keeps things ticking over quietly.

“I know intimately every strip we fly from and I know when John could be uptight on cer-tain strips. There are really good strips, there are good strips and there are a few that are marginal in the wrong conditions. But we only work them in good conditions and when we get to the marginal strips my job is to keep him calm,” she says.

To ensure their busi-ness is profitable, Janet has adapted to the almost nomadic, romantic life-style of camping out on

farms instead of flying back to base at night.

“We have slept under the wing and in the fertil-iser bin and cooked there as well. In the early days this was quite common because the aircraft were much smaller and carried less so the job took longer. Today, with the big aero-planes, it’s done quickly and most pilots go back home.

“We are extremely lucky in that we have good clients who have backed

us and stuck with us – even accommodated and fed us; it’s been amazing. In return, John has done an excellent job,” she says.

Janet Spence, like her husband, has seen what has happened to the industry over the years. She shares his concern that it is hard for individ-uals to get into it easily: there are many impedi-ments such as high com-pliance costs and too many rules.

“It’s now at the stage where some of the new rules stress the pilot. John is 64 and he has survived because we are both very safety conscious and have our own safety manage-ment plan,” she adds. “When it’s windy, we knock off because neither of us can afford to get hurt because if we do the busi-ness is gone and we like what we are doing.”

John Spence is critical of some of the comments made by the chair of the Agricultural Aviation Association, Alan Beck, who says the ag indus-try needs to be run by business people and not enthusiastic amateurs.

Spence says he and Janet believe a lack of reg-ulation is leading to people – especially inexperienced helicopter pilots – getting into the business and not doing it profitably, which has the effect of dragging down the whole industry.

He doesn’t buy the notion that it’s easy to get into the industry.

John and Janet Spence are smart, down-to-earth realists with an intimate knowledge of farming and ag aviation. They, unlike many others, have sur-vived physically and finan-cially and have a strong

business. But the era they typify will eventually end and, as with so many small businesses, personal ser-vice will give way to imper-sonal, corporate service. Such a pity.

Janet Spence fills up the plane with another load of fertiliser before husband John takes off to spread it on.

To ensure their business is profitable, Janet has adapted to the almost nomadic, romantic lifestyle of camping out on farms instead of flying back to base at night.

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18 NEWSHigh Court appeal looms over Ecan plans

AN APPEAL to the High Court is looking likely as Mid Canterbury irrigators BCI digest the implica-tions of the Environment Canterbury (ECan) Plan Change 2 – as reported in

the Feb 16 issue of Rural News.

BCI general manager John Wright has met with ECan staff to try to clarify the decision.

BCI is a joint ven-ture between the Barrhill Chertsey Irrigation Board

and Electricity Ashburton; it supplies water to farms in the Hinds/Hekeao Plains south and west of Ashburton.

The area is over-allo-cated for water use and ECan is trying to bring nutrient leaching under

control in this produc-tive area.

One of the Plan Change 2 decisions by ECan commissioners Peter Skelton and David Caygill will prevent BCI from being granted a replacement scheme dis-

RICHARD COSGROVE

charge permit when its current permit expires in 2018 for any land in the Hinds/Hekeao area not irrigated before February 15 2016.

However, farmers are still able to develop irriga-tion under the Rangitata Diversion Race Manage-ment Ltd (RDR) discharge permit.

The Hinds/Hekeao area is one of few places in the country where farmers can choose between com-peting irrigation schemes.

Wright says BCI and ECan are trying to under-stand the commission-ers’ decision. However, he believes that – at face value – it appears a mas-sively unfair and an anti-competitive move by the commissioners.

A 50% shareholder, Barrhill Chertsey Irriga-tion Board chairman Rab McDowell, believes the decision would make its expansion into the Hinds/Hekeao area impossible.

“Why would a farmer sign up with BCI when he would face extra costs of trying to obtain discharge consents from ECan, whereas if he signed up with the RDR he could operate under the RDR consent?”

An irrigation scheme like RDR is able to aver-age its nutrient discharge across the whole of the

scheme whereas individ-ual farmers would not have that luxury.

Under the plan, apply-ing for new water is pro-hibited once the plan change becomes opera-tive, and all farming is required to be using good management practice by 2017.

BCI has spent hun-dreds of thousands of dollars improving its infrastructure in the area with the goal of expand-ing, but that excess capac-ity will go unused if the decision is allowed to stand.

About 40% of the farms in the area are dairy farmers, with cropping and sheep farmers make up most of the remaining agricultural activity.

At the decision announcement Skelton said he was unsure if there would be any appeals, but it appears obvious that BCI will have no option but to look at appealing.

Appeals are limited to points of law and Wright says that being unfair is not a point of law, but they are examining the deci-sion in detail and looking for a strong point of law to appeal on.

Wright says it was BCI’s job to stick up for its shareholders’ rights and that’s what they will be doing.

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AGRIBUSINESS 19

El Nino no-show helps MirakaSUPPLIERS TO Miraka, the Maori-owned dairy company near Taupo, gained respite from the non-appearance of El Nino.

Chief executive Rich-ard Wyeth says, ironi-cally, while production for the season is down, the company has had record milk output for this time of year. People are still cutting silage, which is “unheard of ” in the region.

Wyeth says farmers are doing well for grass, but obviously the payout is “very challenging” for them.

“Suppliers are doing everything they can within their control,” he told Rural News. “I was talk-ing to one recently who told me he was looking to strip costs wherever he can. Obviously they are going to keep farming, but they know the payout will not be great short-term, so they must pull back on any expenditure.”

Wyeth says production

PETER BURKE

[email protected]

is down 7% on budget and he expects this trend to continue into next season, because of reduced cow numbers and lower sup-plementary feeding during the peak.

“There is plenty of

evidence that farmers are going back a more pasture-based system and using fewer supple-ments.”

From a marketing per-spective, Wyeth says Miraka is well placed this

season. His real concern is what might happen next season.

“There is not a lot of good news on the horizon in terms of demand from our customers, and supply from Europe and the US is

still relatively high, so it’s going to be a pretty chal-lenging time.”

Wyeth says Miraka is looking to increase the amount of milk it puts into value-add products. The business is looking to

generate 50% of its reve-nue from value-add prod-ucts by 2020. Value-add helps insulate companies from the ups and downs of the commodity market.

QUIN PULLS PINWESTLAND MILK Products boss Rod Quin is leaving the company later this year.

The West Coast dairy company is New Zealand’s second biggest dairy co-operative.

“Rod has decided that after seven years in the role it is an appropriate time for him to seek a new challenge and for the co-operative to appoint a new leader,” West-land chairman Matt O’Regan says,

O’Regan says Quin has played a critical leading role in developing and implementing Westland’s strategy to move into more profitable added-value products – such as infant formula and UHT milk – and so reduce the co-operative’s reliance on the highly volatile bulk dairy commodities market.

He says the search for a new CEO would begin immediately and Quin has been asked to remain in the role until his replacement has been found.

“This is genuinely my decision,” Quin says. “It’s simply time to go and let someone else bring their energy and style to the business.”

Quin has lead Westland since April 2009.

@rural_news


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LAMB MARKET TRENDSBEEF MARKET TRENDSMARKET SNAPSHOT


20 MARKETS & TRENDS

BEEF: Slaughter prices across NZ have held stable over the past fortnight,buoyed by the gradual improvement in the US beef market. The cow kill is slowly starting to get underway across NZ with dairy farmers beginning to cull dry cows. With dairy payout forecasts set to be very low for yet another season, dairy farmers are looking to cut costs by wintering cows on-farm this year. This will mean many will have to reduce herd numbers, which could lead to another significant cow kill this season. However few unproductive cattle remain on farms after the heavy cull last season, which could limit numbers killed this year. Demand for store cattle remains hot, as dairy grazers look for alternate sources of income this season, due to an inability to find dairy cattle to graze.

INTERNATIONAL BEEF: The US beef market has felt some wobbles recently, and it appears that prices have peaked for the time being. In the last week of February US imported 95CL bull and imported 90CL cow reached US$2.22/lb and US$2.08/lb respectively. However the market weakened in the week following, with prices most recently quoted at US$2.19/lb and US$1.97/lb at the time of writing this article. This weakness has not occurred as a result of any significant change in demand, but rather from the expectation that supply

of imported beef into the US should lift as the NZ cow gets underway. Offerings out of Australia are expected to increase as well, though at this stage there have been no signs of this occurring.

INTERNATIONAL SHEEP: There have been some signals from overseas that the current lamb markets may have already reached their lowest point for the season. Middle Eastern importers have been working there way through their inventories, and now appear willing to re-enter the market for forequarters. It is expected this activity will act to bolster the Chinese market, as these two markets compete for similar cuts of lamb. Demand for imported frozen lamb legs in the UK remains subdued, though there is not expected to be any further downside observed in the short-term. Both the US and continental Europe remain two of the better performing markets for NZ exporters. Conditions in these markets are stable, and there are not any significant movements forecasts for the short-medium term.

SHEEP: Lamb slaughter rates have been moderate over the past couple of weeks. Drier conditions through parts of both the North Island and South Island have drawn more numbers out, but a lack of lambs on-farm for this

time of the year has prevented any major lift. Slaughter prices have held stable lately. Tighter late season supply and the potential for further improvements in overseas markets will likely see some upside in prices through late Autumn and early winter. Much higher numbers of store lambs are becoming available through the South Island as

the dry through Canterbury and northern Otago starts to bite. However demand remains strong, meaning prices haven’t softened as much as would otherwise be the case. North Island store lamb prices have eased a little, but decent demand and soft supply should hold this market up in the short-term.

WOOL PRICE WATCH Overseas Wool Price Indicators

Indicators in NZ$ Change 25-Feb 18-Feb Last Year Indicators in US$/kg Change 25-Feb 18-Feb Last

YearCoarse Xbred +15 5.79 5.64 4.78 Coarse Xbred +10 3.86 3.76 3.71

Fine Xbred +11 6.00 5.89 5.26 Fine Xbred +7 4.00 3.92 4.12

Lamb -8 6.78 6.86 6.25 Lamb -5 4.52 4.57 4.89

Mid Micron - - - - Mid Micron - - - -

450

550

650

750

850

Mar May Jul Sep Nov Jan

Wool Indicator Trends

CXI FXI LI

300

350

400

450

Oct Dec Feb Apr Jun Aug

Coarse Xbred Indictor in US$

Last Year

This Year

400

500

600

700


Coarse Xbred Indicator

Last YearThis Year

350

400

450

500

550

600


Wool Indicator TrendsCXI FXI LI

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

Me at North Is land S outh Is land

c/kgCWTChange

c/kgLast

We e kChange

c/kgLast

We e k

Lamb - PM 16.0kg n/c 4.78 n/c 4.78

S te e r - P2 300kg n/c 5.35 n/c 5.20

Bull - M2 300kg n/c 5.35 n/c 4.70

Ve nison - AP 60kg n/c 7.30 n/c 7.30

$4.0

$5.0

$6.0

$7.0

Dec Jan Feb Mar Apr May

North Island 16.0kg M Lamb Price

5yr Ave Last Year This Year

$3.5

$4.5

$5.5

$6.5


South Island 16.0kg M Lamb Price

5yr Ave Last Year This Year

$3.8

$4.3

$4.8

$5.3

$5.8

$6.3


North Island 300kg Bull Price

5yr Ave

Last Year

This Year

$3.5

$4.0

$4.5

$5.0

$5.5

$6.0


South Island 300kg Steer Price

5yr Ave

Last Year

This Year

$6.0

$6.5

$7.0

$7.5

$8.0

$8.5


North Island 60kg Stag Price

5yr Ave

Last Year

This Year

$6.0

$6.5

$7.0

$7.5

$8.0

$8.5


South Island 60kg Stag Price5yr Ave

Last Year

This Year

BEEF PRICES

c/kgCWT Change Last Week

2 Wks Ago

Last Year

NI P2 Steer - 300kg n/c 5.35 5.35 4.95M 2 Bull - 300kg n/c 5.35 5.35 5.00P2 Cow - 230kg n/c 4.30 4.30 3.70M Cow - 200kg n/c 4.30 4.30 3.70

Local Trade - 230kg n/c 5.30 5.30 4.95SI P2 Steer - 300kg n/c 5.20 5.20 4.58

M 2 Bull - 300kg n/c 4.70 4.70 4.40P2 Cow - 230kg n/c 3.90 3.90 3.25M Cow - 200kg n/c 3.80 3.80 3.25

Local Trade - 230kg n/c 5.40 5.40 4.70

Slaughter

Export Market DemandChange Last

Week2 Wks Ago

Last Year 5yr Ave

95CL US$/lb -2 2.20 2.22 2.18 2.16NZ$/kg -2 7.21 7.23 6.37 5.95

Procurement IndicatorChange 2Wks

Ago3 Wks Ago

Last Year 5yr Ave

% Returned NI +0% 74.2% 74.0% 78.47% 73.5%% Returned SI +0% 65.2% 65.0% 69.1% 68.3%

$1.70

$2.20

$2.70

$3.20


Dem and Indicator - US 95CL Beef

Last Year

This Year

50%

60%

70%

80%

90%


Pro curement Indicator - South I.

Last Year

This Year

60%

70%

80%

90%


Pro curement Indicator - North I.

Last Year

This Year

k

10k

20k

30k


So uth Island Weekly Cattle Kill

5yr Ave

Last Year

This Year

k

20k

40k

60k


No rth Island Weekly Cattle Kill

5yr Ave

Last Year

This Year

LAMB PRICES

c/kgCWTChange Last

Week2 Wks Ago

Last Year

NI Lamb YM - 13.5kg n/c 4.76 4.76 5.01PM - 16.0kg n/c 4.78 4.78 5.03PX - 19.0kg n/c 4.80 4.80 5.05

PH - 22.0kg n/c 4.81 4.81 5.06 M utton M X1 - 21kg n/c 2.50 2.50 3.00SI Lamb YM - 13.5kg n/c 4.78 4.78 4.81

PM - 16.0kg n/c 4.78 4.78 4.83PX - 19.0kg n/c 4.78 4.78 4.85

PH - 22.0kg n/c 4.78 4.78 4.86 M utton M X1 - 21kg n/c 2.18 2.18 2.65

Slaughter

Export Market DemandChange Last

Week2 Wks Ago

Last Year 5yr Ave

UK Leg £/lb n/c 1.60 1.60 1.80 1.93NZ$/kg +5 8.20 8.15 8.60 8.56

Procurement IndicatorChange 2Wks

Ago3 Wks Ago

Last Year 5yr Ave

% Returned NI -0 .4% 59.8% 60.1% 59.9% 66.0%% Returned SI -0 .4% 58.5% 58.9% 58.1% 63.8%

Venison PricesChange Last

Week2 Wks Ago

Last Year 5yr Ave

NI Stag - 60kg n/c 7.30 7.30 6.40 6.64SI Stag - 60kg n/c 7.30 7.30 6.27 6.69

£1.00

£1.50

£2.00

£2.50


Dem and Indicator - UK Leg Price

Last Year

This Year

45%

55%

65%

75%


Pro curement Indicator - South I.

Last Year

This Year

50%

60%

70%

80%


Pro curement Indicator - North I.

Last Year

This Year

k

100k

200k

300k

400k


No rth Island Weekly Lamb Kill

5yr Ave

Last Year

This Year

k

100k

200k

300k

400k


So uth Island Weekly Lamb Kill

NEWS PRICE WATCH


MARKETS & TRENDS 21

BEEF: Slaughter prices across NZ have held stable over the past fortnight,buoyed by the gradual improvement in the US beef market. The cow kill is slowly starting to get underway across NZ with dairy farmers beginning to cull dry cows. With dairy payout forecasts set to be very low for yet another season, dairy farmers are looking to cut costs by wintering cows on-farm this year. This will mean many will have to reduce herd numbers, which could lead to another significant cow kill this season. However few unproductive cattle remain on farms after the heavy cull last season, which could limit numbers killed this year. Demand for store cattle remains hot, as dairy grazers look for alternate sources of income this season, due to an inability to find dairy cattle to graze.

INTERNATIONAL BEEF: The US beef market has felt some wobbles recently, and it appears that prices have peaked for the time being. In the last week of February US imported 95CL bull and imported 90CL cow reached US$2.22/lb and US$2.08/lb respectively. However the market weakened in the week following, with prices most recently quoted at US$2.19/lb and US$1.97/lb at the time of writing this article. This weakness has not occurred as a result of any significant change in demand, but rather from the expectation that supply

of imported beef into the US should lift as the NZ cow gets underway. Offerings out of Australia are expected to increase as well, though at this stage there have been no signs of this occurring.

INTERNATIONAL SHEEP: There have been some signals from overseas that the current lamb markets may have already reached their lowest point for the season. Middle Eastern importers have been working there way through their inventories, and now appear willing to re-enter the market for forequarters. It is expected this activity will act to bolster the Chinese market, as these two markets compete for similar cuts of lamb. Demand for imported frozen lamb legs in the UK remains subdued, though there is not expected to be any further downside observed in the short-term. Both the US and continental Europe remain two of the better performing markets for NZ exporters. Conditions in these markets are stable, and there are not any significant movements forecasts for the short-medium term.

SHEEP: Lamb slaughter rates have been moderate over the past couple of weeks. Drier conditions through parts of both the North Island and South Island have drawn more numbers out, but a lack of lambs on-farm for this

time of the year has prevented any major lift. Slaughter prices have held stable lately. Tighter late season supply and the potential for further improvements in overseas markets will likely see some upside in prices through late Autumn and early winter. Much higher numbers of store lambs are becoming available through the South Island as

the dry through Canterbury and northern Otago starts to bite. However demand remains strong, meaning prices haven’t softened as much as would otherwise be the case. North Island store lamb prices have eased a little, but decent demand and soft supply should hold this market up in the short-term.

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Indicators in NZ$ Change 25-Feb 18-Feb Last Year Indicators in US$/kg Change 25-Feb 18-Feb Last

YearCoarse Xbred +15 5.79 5.64 4.78 Coarse Xbred +10 3.86 3.76 3.71

Fine Xbred +11 6.00 5.89 5.26 Fine Xbred +7 4.00 3.92 4.12

Lamb -8 6.78 6.86 6.25 Lamb -5 4.52 4.57 4.89

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22 AGRIBUSINESS

THE FARM Data Code of Practice defines disclosures and behaviours required of organisations storing, handling or moving data on behalf of New Zealand farmers.

The data governed by the code includes animal, land application, stock reconciliation, feed, grazing, irrigation, effluent, financial and chart of accounts data.

Compliant organisations will receive an annual licence, certificate and use of the Farm Data Code of Practice trademark. Participation is voluntary.

DATA GUARDIANS

Farmers’ data protection moves into gearWHO HAS your data and what are they doing with it?

The question arises because more and more farm data is moving online, and its manage-ment needs to be secure.

Hence, as of early March farm data man-agement firms are being accredited under the New Zealand Farm Data Code of Practice. The code sets the rules for how farmers’ data is handled between

various organisations. Farm management

software company Farmax, Hamilton, was the first company to begin the accreditation process, followed by farm informa-tion hub FarmIQ Systems,

Wellington, and envi-ronmental management information host Gate-way Data Services, Inver-cargill.

The code is one of three interlinked Pri-mary Growth Partnership

(PGP) farm data projects that will help make seam-less data exchange in the agri industry the norm. The other two projects are the Farm Data Standards and Data Linker.

The Farm Data Stan-

Farmax’s Gavin McEwen says farmers are concerned about who has access to their data.

dards project defines the various ways data can be exchanged between differ-ent farm software.

Data Linker, still in development but expected to launch soon, allows organisations to exchange data on terms agreed by both parties. Farmers are asked to give permission before any data transfer occurs.

Farmax general man-ager Gavin McEwen says farmers are rightly con-cerned about who has access to their data and how it was being used.

“Companies able to show their code of prac-tice membership will help demonstrate to farmers that their data is being handled in a responsi-ble and ethical manner,” McEwen says.

FarmIQ chief execu-tive Collier Isaacs says the accreditation scheme pro-vides assurance to cus-tomers.

“FarmIQ has built integration with devices including Tru-Test, Gal-lagher, Iconix and Te Pari products, and has created data links with special-ist software Cashmanager Rural for farm finances and feed budgeting with Farmax. This means users can easily move files and information, avoiding having to enter it twice and assisting accuracy and consistency.”

Gateway Data Services managing director Janet Brooker says accredita-tion had been a thorough

process.“For Gateway Data Ser-

vices accreditation con-firms our investment in high level data encryp-tion, gap redundancy and high end data integrity as the future standard for moving farm data. Excel spreadsheets and CSV files will no longer be acceptable,” she said.

Software development specialists Rezare Sys-tems at Waikato Innova-tion Park, Hamilton, were contracted to develop the code of practice.

It’s one of the trio of related initiatives being worked on by Rezare.

Managing director Andrew Cooke says the code has sparked a con-versation between farm-ers and their providers.

“The actual arrange-ments for rights to data and its use will vary depending on the type of data and who is paying, but clarity for farmers is crucial, because data is becoming essential for profitable farming,” he says.

Federated Famers of New Zealand Dairy chair-man Andrew Hoggard, who serves on the Farm Data Accreditation Board, applauds the first accredi-tations.

“Farmers are tired of having to supply data three, four or five times to different people,” Hog-gard says. “[The code] puts systems in place and gets the groundwork right.”

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WORLD 23

UK farmers fear leaving EULEAVING THE European Union would put the UK’s access to vital farm subsidies and free market trade at risk, prominent British farm leaders are warning.

Forty-two leading figures in UK farming signed a letter published in The Times on March 5 calling for Britain to remain in the EU.

Launching the ‘Farmers for In’ campaign, alongside a host of farmers from around the UK, the signatories argue that leaving the EU would be a “risk we cannot afford to take”.

Led by former NFU president Sir Peter Kendall, the signatories included former EU Minister Lord Plumb, Sir Jim Paice, Scottish MEP George Lyon and Jilly Greed, co-founder of Ladies in Beef.

The letter argues, “The European single market accounts for 73% of Britain’s agri-food exports and gives us access to a market at least twice the size of the US.

“Outside the EU we could keep all or some of this market, but we would have to abide by EU regulations without a say in their formation and pay into the EU budget without receiving EU payments in return. We’d pay, but have no say.”

Former NFU president Sir Peter Kendall said: “Being part of the world’s biggest trading block is crucial to the future of

our farming and food industry.”

It allows direct access to 500 million rich consumers, and to 50 other countries via EU free trade agreements.

The group also argued that “environmental threats cross borders, so do the animal and plant diseases which endanger food supplies, and market volatility isn’t just a problem for British farmers”.

Sir Peter added: “It is pointless trying to tackle these challenges unilaterally, at a country level; only by working together with other member states – with common standards and thresholds – will we give farming the security it needs in today’s uncertain landscape.

“I won’t pretend the EU is perfect but I’m convinced that as farmers we’re stronger, safer and better off inside.”

Former Defra farm minister Sir Jim Paice said, “Farmers have had the certainty of the CAP behind them and while it has many faults it is helping them through the current crisis of falling prices.

“Inside the EU we gain from the strength of farmers elsewhere; outside we would be of little importance in a country where few people and even fewer politicians have links with farming. To pretend as some do that we would get better treatment is cloud

cuckoo land.”The letter warns that

while Britain would no longer be subject to some EU regulations, exit from the EU would not mean rules would not be replaced by UK ones to address the same issues.

“Farmers need the EU not just for support but for free access to our main export market; leaving Europe would put it all at risk.”

Scottish Lib Dem MEP George Lyon, a former NFU Scotland president, said the UK farming industry was much stronger and better off inside the EU.

“The Common Agricultural Policy is far from perfect, but at least it gives us a level playing field on farm support, safety nets at times of crisis, access to markets and the same rules on SPS and marketing.

“An unsupported farming industry would be a disaster for consumers, producers, food processors and manufacturers, with already squeezed farmgate prices plummeting in the struggle to compete with increased volumes of cheap imported food, produced to lower standards of product safety and animal welfare.”

But opponents, including Defra farm minister George Eustice, claim that the UK and its farming industry have nothing to fear from leaving the EU.

Eustice outlined his ideas for a ‘Plan B’ exit from the European Union at last month’s NFU conference.

“We would do far better as a country if we ended the supremacy of EU law and actually shaped new, fresh thinking and created policies that would really deliver for our agriculture,” said the minister.

Ukip’s agriculture spokesman, MEP Stuart Agnew, believes the UK farmers would be better off outside the EU because they would be subject to less red tape.

Agnew has proposed a modified subsidy system with an £80/acre payment to lowland farmers, less pro-rata on uplands, to be capped at £120,000/holding or 1500 acres, if the UK left the EU.

“There will be no more debating on this figure, no greening, no set-aside and no interference in your cropping,” Agnew said.

Last month, Defra secretary Liz Truss told the NFU’s annual conference in Birmingham that leaving the EU would be “a leap into the dark” that would risk £11bn of UK food and farming exports.

But Defra minister George Eustice told the same conference that leaving the EU would result in an £18bn “Brexit dividend” that will allow the UK to continue supporting agriculture.

Former NFU president Sir Peter Kendall fears what exiting the EU will mean for UK farmers.

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24 OPINION

EDITORIAL EDNA

CyclewaysA RURAL mate of the Hound was driving through the country recently when his townie companion remarked on how proactive the local council had been in providing cycleways alongside the state highway. The rural type looked again and then realised that his townie mate had mistaken a dairy race running parallel to the road for a cycleway. Mind you, your old mate reckons it would be a great place for cyclists and they might meet some nice cows and even a farmer and get a better under-standing of the industry.

Feisty FrenchiesYOUR OLD mate reckons French farmers seem to have perfected the art of protesting and getting their Government to fold when things get tough for them, despite the huge subsidies they already receive. Apparently, the Froggy farmers, upset at collapsing milk and pork prices because of Russian trade sanctions, besieged towns and blocked roads with manure and burning tyres in western and northern France. The protests came after dairy, beef and pork farmers suffered a 40% decrease in farm-gate prices in 18 months. True to form, French President Francois Hollande folded quicker than a Ware-house tent when the farmers started whining; he said his government would reduce their taxes. Imagine how the Government and public of NZ would react to similar actions taken by NZ farmers.

Do what?THIS OLD mutt notes that Labour’s primary industries spokesman Damien O’Connor recently told the Primary Indus-tries Minister Nathan Guy to stand up for farmers during tough times. O’Connor claimed that Guy “needed to stand up for farmers during tough times rather than rolling over for banks”. His demand came after Guy said the Government wouldn’t be bailing out farmers who can’t pay their bills following the collapse in the dairy price. Fair enough, but the Hound would like to know exactly what O’Connor would or could do if he were the minister? As a mate of the Hound’s opined: “What would the member of the West Coast suggest; doling out cash, forcing banks to carry bad debts, hugs?”

Testy timesA MATE of your canine crusader reckons it must have been a tension-filled time at the recent Northland Field Days, with competing farmer organisations touting for members. Apparently national farmer body Federated Farmers of New Zealand were on site, just across the lane and four sites down from rebel, Northland breakaway farmer group Farmers of New Zealand. It would have been fun to know just what they were saying about each other to the punters.

LAST WEEK’S ‘Black Tuesday’ announcement by Fonterra that the current season forecast payout will be cut to $3.90 per kg of milksolids poses a number of questions.

Firstly, how are dairy farmers expected to survive on such a low payout, especially when DairyNZ estimates that farmers need a payout of $5.25kg/MS to break even? And if the current world oversupply persists, how long will the sce-nario of low payouts continue?

Farmers and bankers may be able to handle one season of no returns, but the latter, especially, are unlikely to tolerate this if nil or poor returns continue for two or three more years.

But the real question must be, how has Fon-terra managed to make such a hash of predicting this season’s payout? Granted, forecasting is not an exact science, but does the co-op not employ a team of highly paid analysts and in-market experts to provide it with all the necessary infor-mation?

Frankly, these guys couldn’t pick horses, never mind dairy price trends: their record is appalling and not just in this current season. Just how accu-rate were they last season in predicting the $8.40 payout?

For the current season Fonterra’s experts kicked off their market pick at $3.85, then changed it to $4.60, then at the start of the year changed it to $4.15 and now they have retreated to $3.90.

The company has blamed a ‘perfect storm’ of circumstances for the pricing volatility it has experienced. It has pointed to problems such as lower demand from the Chinese and Russian markets as a major factor in the global ‘imbalance’ of the international dairy trade. It also noted the impact of European production increasing faster than expected.

Weren’t we told that one benefit of TAF was the requirement for Fonterra to regularly update the market? One would have thought that with this kind financial discipline in place the dairy co-op would be far better at forecasting prices and international supply pressures. Apparently not!

Chief executive Theo Spierings and his team of international executives can fairly expect tough questions from farmers and others about their performance – or lack of it. While Spierings and Co come under the blowtorch, so too must Fonterra’s board which does after all decide the payout level. They must carry the can for having got it so persistently wrong.

Perhaps the current ‘strategic rethink’ the co-op is undergoing should include a serious look at the make-up of the board and its dominance of farmer suppliers. These guys may be good at milk-ing cows, but they seem to be rubbish at anything else to do with the international dairy market.

How wrong?

“Typical! – just when I get used to something they go and change it!”

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RURALNEWS

ABC audited circulation 81,004 as at 30.06.2015

Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.

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OPINION 25

Landcorp chief executive Steven Carden.

Standing still not an optionTHERE’S NO doubt it’s a challenging time for New Zealand’s rural sector.

The weak commodity prices, in particular milk and sheep meat, demonstrate the extent to which this country’s agriculture is vulnerable to the vagaries of the global market.

This is hardly new news. The vagaries of commodities has been a feature of Landcorp -- and the broader farming sector -- for more than 130 years.

But while that strategy has worked well historically, we recognise the need to continue adapting to a new world where production is not king, a world where there is much more scrutiny of how we are treating our animals, the environment and our people. The expectations of consumers and the broader public on how farmers are stewarding the natural assets they’ve been entrusted to manage has changed – dramatically.

As farmers, we need to work on ways to make our meat, wool and milk even more valuable and desirable than we have in the past.

That is the vision for our Pamu brand, which is just one part of our current strategy for growth and sustainability. Pamu is about directly connecting the food we produce on our farms with high value consumers around the world. To do that, we need to three things:

First, we need to exceed consumers’ expectations about how their food is produced -- whether it is the standard of care for the animals, the people who work on the farm, or the environmental impact of producing that food.

Change is painful. It is more painful when it is resisted. Rather than fighting the minimum standard set by the regulators, Landcorp is

trying to embrace the new expectations of consumers and get ahead of them. Why? Because it’s good business.

So we’re thinking hard about ways to improve animal welfare, enhance our natural environments, and create much safer, happier working environments, as a way of boosting rather than diminishing our profitability.

Second, we are looking at ways in which we can differentiate our products. Because if we can’t differentiate them in a way that consumers value, we can’t expect to get paid a premium for them. So we are looking at organics. We are exploring anti-biotic free and non-GMO product opportunities. We are interested in A2 and winter milk options.

Finally, our new direction includes a focus on developing new products such as sheep milk. These new products are not only niche and premium, they also require new farm systems that meet growing consumer expectations.

While our sector is facing some headwinds at the moment, we remain very confident about our ability to change and adjust to a new way of farming. That’s what NZ farmers are famous for around the world. Landcorp recognises that for its part, it needs to increase its investment in innovation and science. That’s one of the reasons why we’ve appointed our first general manager of innovation and technology to look at new sciences and technologies to help us improve our operations. Landcorp wants to learn from the successes of others and adopt the best ideas from wherever they come -- in NZ and abroad.

Landcorp expects the current financial year to remain challenging for our business, as it will be for other parts of the sector. It’s not an ideal environment to be investing in changing our business. But it is only

STEVEN CARDENwhen the times are tough that the need to change is most apparent.

Our change to a new way of operating is going to take time, energy and

patience. But we have to do it. Because not only will it re-position our company to meet the changing needs of customers, it will also

create real resilience for the future.• Steven Carden is chief executive of Landcorp

@rural_news


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26 OPINION

How do you calculate organic milk value?THE GLOBAL Organic Dairy Products Market 2015-2019 forecasts market growth of approximately 12% by 2019.

This is based on growing health awareness in response to “excessive use of pesticides, fertilisers, ionising radiation and sewer

sludge”, as well as animal hormones and antibiotics. At the same time, however, the report warns that, “the high pricing of organic dairy products is expected

to deter growth during the reporting period”.

Fonterra has responded to apparent demand by paying a premium for organic milksolids in

order to attract more suppliers. In March 2015, it lifted the premium from $1.05 to $1.50. In August, it increased the premium by 25c/kgMS,

to a total of $1.75 on top of the basic price. At the time that was forecast to be $3.85, indicating a 45.5% benefit to organic milk production.

To Fonterra, however, the value of the organic whole milk powder was reported to be $14,600/tonne versus about $2800/t for conventional whole milk powder (520% premium).

The question must be whether Fonterra’s premium to farmers covers the costs.

The challenge in comparing farm management systems is that so many variables change; identifying the drivers for positive and negative results is difficult. In addition, climate variability, and the time for the new biological cycle to reach equilibrium, obscures effects.

Massey University has attempted to isolate some effects through paired farm research. It reported a reduction in operating profit per hectare of 13.6% over the first five years after organic certification, with a reduction in milk of 18.2%. Costs of production were generally higher on the organic farm, particularly in years of drought, leading to increased risks in economic viability.

Often not considered in the cost of production is that the value of stock in an organic system can be eroded. Homeopathic remedies have not been shown to be effective in treatment of mastitis and though incidence of mastitis is reported to be lower on organic farms, research has shown that farmers do not use the same criteria to detect it.

Of further concern is the soil nutrient status.

Associate professor Dave Horne, Massey University, has warned that an organic system tends to focus on micronutrients while eroding the macronutrients (particularly phosphorus) and ultimately creating deterioration in soil fertility and pasture quality. Both take considerable time to re-establish. And though nitrogen loss through leaching might be reduced (depending on management system).

In 2009, following the global financial crisis, premium products took a hit globally and organic farmers suffered. Fonterra contracted 127 farmers to supply organic milk and then cancelled the contracts of 53. Processing of organic milk dropped from 10 million kgMS/year to 6 million.

A mere six years later, Fonterra was reported to be “desperate for high value organic milk”.

Fonterra’s latest announcement is that from June 2016 organic milk payments will reflect the performance of the organics business. Farmers will be able to choose to take the ‘link’ or stick with a fixed price. At $4.15 milk price, the premium of $1.75 appears to cover the opportunity cost. The real cost of change to organics is also unknown, and the risk in operating in a changing climate has been identified.

‘Organic’ dairy production has been identified as an opportunity, but the reason the demand is growing is based on perception of high use of chemicals. New Zealand dairy production systems do not involve excessive use of pesticides, fertilisers, ionising radiation, and sewer sludge, nor animal hormones and antibiotics. Marketing that, rather than taking a punt on ‘organic’ might be more valuable and less risky for everybody.- Jacqueline Rowarth is professor of agribusiness, The University of Waikato.

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OPINION 27

Keeping ourselves well in tough timesIT IS easy to talk ourselves into doom and gloom nowadays, given a push by ill-informed media reporting and commentary on what’s happening in the agricultural sector.

There is no doubt the past 12 months or so have been tough for farming and its related industries. However, those of us who have been around long enough know that, unfortunately, farming has always been cyclical. Much like the climate, ups and downs in commodity prices are a reality in the agri sector.

While the dairy sector’s struggles continue, there are bright spots in other sectors; some are very bright.

According to ASB rural economist Nathan Penny, agriculture as a whole remains strong, non-dairy sectors and horticulture performing well. Penny says beef prices remain excellent, and kiwifruit and wine exports are buoyant. Meanwhile, other sectors such as wool, pipfruit, venison

and forestry are also faring well.

Penny admits that dairy and to a lesser degree lamb are both doing it tough. However, he and the ASB expect prices for these will lift and come back over time. Meanwhile, the ASB also expects short-term interest rates to fall over the next six months, helping to bring the NZ dollar lower this year.

As said often in this column, even given the current lull in commodity prices, farmers and contractors need to keep planning and farming for the year ahead. Crops will need to be sown, pastures renewed and sprayed, and supplementary feed made and stored away for the next inevitable dry spell.

One thing we know about rural contractors and farmers is that they are always looking after their machinery and gear, keeping it in top working condition so they can do the best job possible. But what about the most important asset in their business – themselves?

It is all very well for contractors to have their tractors and machines in great working order, but these are not much good, either to a business or family, if they are not taking care of themselves.

Too often we hear stories about those in the rural sector letting things get on top of them – not asking for help or reaching out for support. We need to change this mindset and let rural contractors

and others in the rural community know that it is much better to get the necessary support and advice when they are not feeling well physically or mentally.

That’s why Rural Contractors NZ believes it is important our organisation is a member of the Rural Health Alliance of NZ (RHANZ),

along with Fed Farmers, Rural Women, Dairy NZ, Beef + Lamb NZ and some rural councils. RCNZ is fully behind the main objective of RHANZ which is to bring a united voice from multiple rural sector organisations, to develop solutions and influence policy affecting the health and wellbeing of rural communities. Also

our RCNZ chief executive Roger Parton is on the board of RHANZ.

RHANZ is now working with the Ministry of Health to get more training for health professionals, business networks and communities to tackle depression in rural communities. The extra training is funded by a $500,000 boost for mental health initiatives in rural NZ, announced by the Ministers of Health and Primary Industries at last year’s Fieldays.

RHANZ is spending this money to co-ordinate the upskilling of rural health professionals, rural business networks

and rural communities in suicide prevention strategies and increasing access to skilled healthcare in the regions of highest need.

To that end, RCNZ board member Helen Slattery and our executive officer Roger Parton will attend the National Rural Health Conference in Dunedin late March and early April. They will observe and speak into the rural health debate on behalf of rural contractors. We see our involvement with RHANZ as important to our contribution to the rural community.

RHANZ is spending this money to co-ordinate the upskilling of rural health professionals, rural business networks and rural communities in suicide prevention strategies and increasing access to skilled healthcare in the regions of highest need.

@rural_news


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28 MANAGEMENT

Farm training free at new academySHANGHAI PENGXIN has set up a new train-ing facility in the central North Island for aspiring dairy farmers, and herd and farm managers.

The academy, on the company’s Ariki farm on the outskirts of Taupo, is a collaboration between Shanghai Pengxin and Landcorp Farming. It meets the conditions imposed on the Chinese company during its purchase of the former Crafar farms.

Six men and four women have begun studies in the inaugural 32-week residential programme, which combines theory and

practical training with onfarm experience. Staff from the Taratahi Training Institute do the teaching. The course is intended to appeal to people with some technical skill or knowledge in the dairy sector.

The graduates will be awarded Massey University’s Diploma in Agriculture (level 5).

The students are housed on the nearby Shanghai Pengxin farms.

The chief executive of the Pengxin Farm Group, Andy MacLeod, says the dairy industry will need leaders to replace the present cohort of farmers as they retire. He says the academy is only a small stepping stone for

the industry, given that it will produce just ten graduates, but there are 12,000 dairy farms in New Zealand.

Good leaders are needed to manage the company’s farms economically and sustainably, and the academy is something worthwhile in the industry to promote young people coming through.

The academy cost $1.1million to build, and Shanghai Pengxin is spending about $350,000 a year to run it. The students’ tuition, accommodation and food are free.

Nothing will change in the venture when Landcorp, in May 2017,

exits its contract as the sharemilker for Shanghai Pengxin. “I guarantee, right now, Shanghai Pengxin will maintain [the academy],” MacLeod says.

A benefit of having the dairy academy based on the farms is that the students get to mix with farm staff and gain a true appreciation of what farm life is all about.

PETER BURKE

[email protected]

LANDCORP CHIEF executive Steve Carden says Landcorp is committed to developing young talent in New Zealand’s agriculture sector.

He says the dairy academy will sit beside Landcorp’s other investments in training across the country.

“There is strong demand for skilled people, particularly in mid-management roles such as herd or

production managers, and we’re proud of our involvement in this initiative,” he told Rural News.

He says when the joint venture with Shanghai Pengxin ends next May, Landcorp will not be directly involved. However, students will have opportunities occasionally to work on Landcorp farms for work experience.

A NEW GENERATION OF FARMERS

FOUNDING A GREAT CAREERALL TEN students in the Diploma in Agriculture course are enthusi-astic about it.

Most have some experience in dairying, for example Jaymee Smith (17), from Waikato. She gain a level three diploma at Taratahi last year, then saw the opportunity this course offered, applied and was accepted.

“For me it is a stepping stone. Ultimately I’d love to own my own farm but I’d also want to progress my studies in animal breeding and genetics because that interests me.

“This diploma will give me... the ability to build and build and build my career.”

Smith says she want to do well and improve what we have already in NZ and make a difference.

“I’d like to give town people the opportunity to see what farms are like because if I didn’t have a family that had a dairy farm I would have

had no exposure to what farming is like. I’d love to give people the opportunity to experience that and see if they like it.”

Jaymee Smith

Penxgin Farm Group’s Andy MacLeod.

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MANAGEMENT 29

PRODUCTIVITY NOT PRODUCTION

JEREMY PACKARD hails from a dairy farm in Golden Bay where his family has farmed for several genera-tions. He applied for the dairy academy because it was a new course, offered a Dip Ag and was free. He also liked the idea of being in the central plateau region.

Packard hopes that when he has completed his year at the academy he’ll get a job on a Landcorp farm to gain more experience, then return home to run the family farm.

He already has strong views on some of the prob-lems facing the dairy industry right now.

“A lot of farmers are still stuck on producing a lot more milk, but it doesn’t come down to that; rather it comes down to how much you produce per hect-are and what you get in your back pocket -- not how much milk you send to the factory.”

Packard believes many farmers in financial trou-ble today do not understand this.

FROM PAGE 28

Back to basics will avert losses

THREE LEADING dairy farmers have told Rural News a back-to-basics approach is the best way to manage the present dairy crisis.

Trevor Hamilton, who owns farms in the North and South Island, says the worst thing that happened to the industry was the $8.40/kgMS payout.

He says in the pres-ent era of market volatility and low payouts, farmers need to check their bal-ance sheets and delve into their cost structures.

Hamilton says farmers need to get costs down to around $3.50/kgMS.“If you take the Fon-terra milk price and aver-age that over the last ten years, it’s about $6/kgMS. So I believe that in the medium term, as long as you have a sound business at around that $6, you are probably ok; but if not you could well do with an assessment of your busi-ness,” he told Rural News.

Hamilton says dairy companies such as Tatua and Westland Milk Prod-ucts, which produce a higher percentage of value add products, are more shielded from the vola-tility of the commodity market.

Former Fonterra direc-tor Greg Gent believes that grass will become fashionable again as the

effects of lower dairy prices persist. This is a positive effect of the cur-rent crisis.

“Our comparative advantage in the world is grass, and not all dairy farmers moved away from that. Many stayed with straightforward farm-ing systems. Moving back to greater use of grass and relying less on sup-plements will make for a stronger industry.”

Gent says in the days when New Zealand was getting $US5000/tonne for milk powder, any farm system could work and make money. But now the fallout from that is start-ing to show.

He says the present downturn will prompt farmers to look at how they handle risk and per-haps to build more resil-ience into their businesses -- a positive consequence.

Another former Fon-terra director, Colin Armer, says clearer market signals would have helped farmers manage their way through the present diffi-cult times.

He says while the low dairy prices can’t be blamed on Fonterra, some clearer signals about what was happening would have been helpful.

Armer says to restore profitability to the indus-try there must be a move back to some basics, such as the volumes of produc-tion coming off farms and

PETER BURKE

[email protected]

the cost of production.“There will have to be

a reset and some costs taken out of the business. We don’t know how long this oversupply situation will last, but in the mean-

time people can’t go on banking losses.”

Colin Amer (left) and Greg Gent say a back to basics approach will help dairy farmers bounce back.

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MANAGEMENT 31

ALERT ON FODDER BEET WEEDCANTERBURY AND Otago farm-ers are being asked to watch for the highly invasive pest weed velvetleaf.

MPI issued an alert early in March after the weed was discov-ered in a few fodder beet crops in North Canterbury and Central Otago.

Velvetleaf was already known to be present in Waikato and South Auckland; now MPI is investigat-ing how it got to the South Island and how widespread it is.

It is a broadleaf weed that grows

1-2.5m high, with buttery yellow flowers between summer and autumn, heart shaped leaves and velvety to touch.

One of the world’s worst crop weeds, it affects many arable crops by competing for nutrients, water and space.

The plant has distinctive seed-pods with 12-15 segments in a cup-like ring; each seed pod is about 2.5cm in diameter.

MPI’s manager of plants and environment surveillance, Mark

Bullians, urges anyone who has sown fodder beet this season to check crops. The plant will sit well above the fodder beet crop and is distinctive.

MPI hopes it can locate and remove velvetleaf plants before their seed spreads. Once seed falls it can persist for decades, making control a long-term process.

Farmers finding this pest are urged to photograph and mark it so it can be found again, then call MPI on 0800 80 99 66.

Regional winners starting to line upTHE 2016 New Zealand Dairy Awards is entering its business phase with the announcement of regional winners.

Taranaki was the first to announce Ben and Belinda Price as the 2016 Share Farmer of the Year; they took home $17,300 of prizes.

Sam Howard was named the 2016 Taranaki Dairy Manager of the Year, and Sam Hughson the 2016 Taranaki Dairy Trainee of the Year.

Regional winners will compete for the national title in Wellington in May.

The Prices say they are ready to open their farm and promote the dairy industry to visitors every day.

“We have numerous open farms with school groups and other visitors,

so every day is show day,” they say.

“We have a passion for what we do, so we love to show that off and hope-fully promote dairy farm-ing as a great industry to be in.”

The Prices, both aged 35, 50% sharemilk 680 cows on 235ha for Dave and Adrienne Hopkins at Waitotara.

They have been share-milking together since 2008, building their herd from 150 cows. They plan to buy a dairy farm within five years and employ a contract milker to run the property while they continue in their current sharemilking position.

“We have strong humble values which align nicely with that of our farm owners. We all care about our business, our industry and the people

around us and we have a passion and a drive to do what we do well.”

They say they have a great team and support network around them, which challenges them and supports their busi-ness growth.

The 2016 Taranaki Dairy Manager of the Year, Sam Howard (27), has a Master of Applied Economics and was an economist for DairyNZ before entering the dairy industry two years ago. He is the production manager on Alan Mills’ Stratford farm milking 312 cows. He won $10,900 in prizes.

“My long term goal is to own a farm that allows me to choose whether to be hands-on farming full-time or pursue other busi-ness interests or lifestyle goals. I see 50:50 share-milking as a strong vehicle

for equity growth to allow me to generate the capital required to purchase land or invest.”

It was the first time Howard had entered the dairy awards. “I spoke to people who had entered and were knowledgeable and they were all overwhelmingly positive about entering. They mentioned the benefits of learning about your own operation’s strengths and weaknesses through your own critical thinking and the judges’ feedback, and the opportunities to progress and get to know other people in the industry.”

Hughson (19) says he enjoys dairy farming and wants to be good at it.

He has been a racing cyclist, which he enjoyed and worked hard at. “It is the same for farming; I

love it with a passion so I want to be good at it.”

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Poole’s 810-cow Hawera farm.

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32 MANAGEMENT

Farmers urged to make seed decisions based on scienceFARMERS ARE being urged to do their homework and look for hard data before buying grass seed, to ensure they make the correct choice.

That’s the message from the DairyNZ Pasture Improvement Lead-ership Group (PILG).

Ensuring farmers get certified, treated seed appropriate for their farm and the right endophyte is para-mount, according to AgResearch sci-ence impact leader and PILG member Dr Warren King.

It is a critical time of year for farm-ers to choose their new pasture culti-vars and King says it’s easy to get the formula wrong.

He says there is conflicting infor-mation in the marketplace and urges farmers to look for good evidence-based information before making a decision. “Beware of farmer testimo-nials; there’s a lot of it around at the moment and it will only get you so far,” King says.

“What farmers need to be saying is ‘show me the money, show me the

data. Where is the evidence that shows me that your cultivar is going to per-form on my farm?’

“The Forage Value Index (FVI) through DairyNZ is an excellent place to get that information. It is based on decades of seed company data, inde-pendently analysed. It is consistent, well measured and the very best source of information.”

He says most reputable seed com-panies give great information on choosing endophytes but because a few companies don’t there is danger of mixed messages.

“In the upper North Island you have to have appropriate endophytes to pro-tect against black beetle, Argentine stem weevil and the root aphid.

“Anywhere above Taupo, it has to be AR37 or NEA2. Anything else and you are taking a massive risk,” King adds.

In 2000, perennial ryegrass with the endophyte AR1 was commercially released to NZ farmers. It provides only limited protection against black

beetle and is no longer recommended in the upper North Island.

King says using no endophyte is extremely risky.

Similarly, he urges farmers buying pasture seed to recognise that it is a perishable product. It’s vital to know that it’s been kept in a coolstore and transported appropriately, and hasn’t been sitting in a hot warehouse or out-side.

“If you are going to pay the pre-mium for grass seed with the best endophyte... get it from a reputable source. In addition, seed treatment is strongly recommended to protect your pastures from insect attack during early establishment.

“Everyone recognises that pasture renewal involves some risk so it’s a case of minimising that and maximis-ing the return on your investment,” says King.

“It’s a big decision and it’s impor-tant to get it right, so make sure you use the very best information avail-able.”

Farmers are being urged to do their homework before buying grass seed.

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MANAGEMENT 33

Much to gain from management programmeManawatu dairy farmer Montie Hare discusses his experiences on the 2015 Rabobank Farm Managers Programme (FMP), a week-long event attended by up-and-coming farmers from New Zealand and Australia. The programme is led by expert presenters and includes interactive presentations, discussions, case studies and a farm tour.

What made you apply for Rabobank’s Farm Manag-ers Programme (FMP)?

I returned to the family farm in August 2014 after several years away. When I grew up on the farm it was a sheep and beef operation, however the farm was con-verted to dairy in 2011. My dad (Bill) was keen to get me to step into a manage-rial role as soon as possi-ble, and having never lived or worked on a dairy farm I had to learn as much as I could as quickly as I could. Dad had attended Rabo-bank’s other business man-agement programme, the Executive Develop-ment Program (EDP), and I witnessed the enthusi-asm that both my parents gained from his attendance at this course and the part it played in encouraging them to grow the business to where it is today. What were the key topics covered in the pro-gramme?

The course covers a huge range of topics includ-ing leadership, communi-cation and development of a business plan. For me, managing staff is where I needed the most devel-opment. The programme offered a great session on this. You left the ses-sion with a good number of ideas and approaches to dealing with staff and get-ting the best out of them. What were the key learn-ings that you took away from the programme?

The key thing I took way was a renewed sense of enthusiasm about working in the agricultural sector. Programme attendance makes you proud to be a part of the industry you are in when you meet a bunch of other passionate farm-ers. You get to hear from some really impressive people who show you what is possible. You also take away quite a bit of content you can refer to later. In particular, I have found the time management and effi-ciency reference materials

really handy.Have you made any sig-nificant changes to your farming business as a result of completing the programme?

One of the small things I did was to look closely at how I was spending my time during the day. When I did this, I found I was spending a lot of time each week paying invoices, pro-cessing bank statements and doing other adminis-trative tasks. As a result, I now set aside some specific time to do all these tasks once a month and this has proven to be much more efficient. This has helped free up time to look for-ward and investigate strat-egies to drive the business forward. What would you say to other farmers thinking of applying for this pro-gramme?

Regardless of which agricultural sector you are in, there is much to gain from attending this pro-gramme. There are people from a wide range of agri-cultural sectors in New Zealand and Australia, and it is surprising to find how similar the challenges are across the board. For me, it was well worth attend-ing just to hear from all the inspiring speakers and to meet and network with such a diverse range of farmers. • Applications for Rabobank’s Farm Managers Programme are open to all primary pro-ducers and close on April 15. This year’s FMP will take place in South Australia from June 5-10. For more informa-tion about the FMP contact your local Rabobank branch on 0800 722 622 or visit www.rabobank.co.nz

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34 ANIMAL HEALTH

TB CASES STARTING TO EASEA DROP in the numbers of farms and herds afflicted with TB is allow-ing OSPRI to ease stock movement restrictions and TB testing require-ments.

From March 1 disease control areas are reduced; they now affect 5.3 million hectares and about 10,000 herds, resulting in 500,000 fewer TB tests, OSPRI says.

Farmers in regions where move-ment controls have been removed will be free to move stock without any pre-movement tests; and they will be subject to fewer TB tests as special testing area requirements are reduced.

OSPRI quotes Tasman dairy farmer Phil Riley as saying he has grown used to pre-movement TB testing after doing it for 22 years, but will be glad to see the back of it.

“A lot of us had got used to it,

and it’s just another job you have to do onfarm. But it’s great to see the back of it, because it makes it that bit more difficult if you happen to be selling your farm or stock.”

Since 2011, OSPRI’s TBfree pro-gramme has eradicated TB from 1.2 million ha and infected herds are down to 35 from nearly 1700 in 1994.

Riley agrees that as we get better at pinpointing where the risk is, movement control areas will shrink.

OSPRI chief executive Michelle Edge explains that as TB is eradi-cated in each area, such areas are reviewed based on detailed scien-tific analysis and data modelling. Accordingly, where TB eradication targets have been met, the testing requirements are reduced.

“The [eradication] is a credit to farmers and the industry and Gov-ernment organisations.”

The plan for how OSPRI man-ages TB is likely to change from July 1 2016 after a recent review of the National Pest Management Plan. A proposal in response to the review was made by stakeholders in the industry and government officials. This process included scientific modelling, a review of operational outcomes and a public consultation process. The review established that eradication of TB is achievable. The proposal is with the Minister for Pri-mary Industries for approval.

OSPRI’s TBfree programme has the country divided into disease control areas, each with different TB testing requirements depending on the risk of the disease being trans-ferred from infected wildlife (mainly possums) to cattle and deer.

@rural_news


CAN WE predict how long a commercial ewe will last in a flock? Does hogget mating affect longevity? And do high-performing ewes die sooner?

These and similar questions have prompted Massey University sheep researchers Drs Anne Ridler, Paul Kenyon and Rene Corner to EID-tag 12,000 commercially farmed ewe hoggets born in 2010 and 2011, and follow them throughout their lifetimes.

More recently veteri-narian Kate Griffiths has taken the project on as a PhD project.

Some of the ewes were mated as hoggets, others were not. While some of those mated were up to ‘target’ hogget mating weight, others were not.

The researchers weighed and body condition scored (BCS) the ewes four times a year, recorded their reproductive performance and noted the reasons for their culling or death.

Funded by the C Alma Baker Trust, the Massey University Research Fund and Beef + Lamb New Zea-land, the project is in its fourth year. While it is still too early for final results, clearly an important reason for premature cull-ing is failure to rear a lamb (wet-dry ewes) or culling by the farmers due to per-ceived poor udders.

Poor or reduced milk production may be con-tributing to ewes being identified as wet-dry, but there is no data available examining this relation-ship. Also there are no

clear guidelines for udder examination that can assist farmers to decide which ewes to cull based on poor udders.

These factors prompted the researchers to begin an udder study. This year 1200 commer-cially farmed two-tooth and four-tooth ewes have been EID tagged and they will be examined four times a year (pre-mating, pre-lambing, docking and weaning).

At each visit, BCS and weight will be recorded and each ewe’s udder willl be assessed, looking at udder and teat abnormali-ties, udder size, shape and appearance, and teat size and placement.

The ewes will be bred and managed as usual on a working farm, but at preg-

nancy scanning in-lamb ewes will have a DNA ear punch sample taken. Any dead lambs will be col-lected, necropsied and have DNA samples col-lected.

At docking the live lambs will have DNA sam-ples collected and will be weighed at docking and weaning. This will enable the researchers to assess the influence of udder traits/scores/lesions on lamb survival and growth.

The first assessment was done in January. Results will be released as the study progresses. Meantime, the longevity study also continues and the ewes in that study will be culled for age within the next two years, after which final results can be analysed.

Udderly fascinating study underway at Massey

Poor or reduced milk production may be contributing to issues around wet-dry ewes.

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ANIMAL HEALTH 3534 ANIMAL HEALTH

Capsule trial stock show their mettleCENTRAL NORTH Island farmer Eliot Cooper had no difficulty telling which of his stock were included in a trial of Alpheus anti-parasitic capsules, says the product supplier.

“Heading into the third month of the trial, condition wise, it was visually quite evident,” Cooper says.

“We were running them down the race and before you scanned the EID ear tag you could say ‘this one’s obviously a capsule animal, and sure enough, it was. It was pretty obvious.”

The four-month trial started in March 2015 using 136 R1 dairy heifer replacements all grazed in Manawatu. Seventy-two of them were given the

Alpheus capsules plus a primer dose, and 64 were given a triple oral drench every 28 days, dosed according to weight. All animals were weighed every 28 days.

On average, the capsule group were 14.3kg heavier than the group receiving the oral drench at the end of the study.

“You could see the difference in the majority of them,” Cooper says. “Not just the weight. Visually, they were in a lot better condition. You could see that their body condition was a lot better than the others.

“But for me, the big attraction is the convenience. It’s a pretty simple product to use; it’s not a biggie to apply. And at that time of the year you’re leading into lots of other issues so the last thing you want to be doing is dealing with livestock.

“You can get these weaners in, give them a capsule, and basically they’re fine for well over three months. That got us right through March, April, May and into June.

“That is what I see as a real strength. And what’s coming out of it, certainly in the weight gains, more than pays for the capsule.

“Plus they took faecal samples on the way through to look for parasite eggs and there was no sign of any worm activity anywhere in the ones in the trial.

“The autumn is always bad for worms, and if you’re not on top of your game it isn’t long before you pay the price – crook animals with worm burdens.

“If you’ve got a capsule that you know is going to last for 125 days, it gives peace of mind.

“And you take that through to winter; it makes wintering them easier as well. You get yourself into winter with good body condition and it means they will winter better.”

Cooper says the capsules can give farmers a financial gain through the time saved and in increased productivity of healthier, heavier stock.

“If you do the numbers – the time you spend getting stock in to drench them, the cost of the drench, one of them would have to be a pour on, and you’d have to be regularly doing oral drenches as well – there’s a good argument that it pays for itself.

“’When you work through it like that, it’s not an expensive product.”

Eliot Cooper (left) discusses the capsule trial with Richard Loe.

“The autumn is always bad for worms, and if you’re not on top of your game it isn’t long before you pay the price – crook animals with worm burdens. If you’ve got a capsule that you know is going to last for 125 days, it gives peace of mind.”

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36 ANIMAL HEALTH

A return to traditionLime hadn’t been applied to Michael Earwacker’s farm in more than a decade, but now it is back on the agenda, reports AgLime.

WHEN SOIL testing revealed low calcium levels on his 260ha Piron-gia, Waikato, dairy farm, Earwacker began looking for solutions.

He’d been battling mediocre production on the property as his 700 cows struggled to cycle and stay in calf. The soil had a sickly pH of 5.5 and Earwacker became con-vinced the health of his farm, and his finances, relied on improving his pasture.

In November 2014, he returned to the AgLime regime his parents Wayne and Jenny had once used on the same family farm. Earwacker and his wife Jo ordered in four tonnes per hectare and by Christ-mas the benefits were evident.

“The pasture contained more clover and it obviously improved in palatability because the cows ate more of it, mowing their way through the paddocks without

having to miss big clumps of sour grass,” he says. “Milk produc-tion surged. The grass developed deeper roots so fewer clumps were torn from the ground during eating.”

This, in turn, cut the grass seed bill considerably.

Despite the drought in the summer of 2014-2015, Earwacker says they emerged from that season with good results. And even though dairying returns are currently in the doldrums, he says they might almost break even this

year.“Graymont AgLime gave us a

boost and by 2015 we were notic-ing pasture growth like I’d never seen,” Earwacker says. “The girls are utilising more of the pasture, so I’m spending less on supple-mentary feed. I used to feed 5kg/cow/day, but now I use 2.5kg and don’t need to start with it until much later in the season.”

Earwacker says they are pleased with their decision. They are now running 800 cows -- 100 more than in 2014 -- but are using much less

supplementary feed. The fertiliser bill has fallen considerably.

“Graymont AgLime has unlocked so many nutrients that a full fertiliser programme is no longer required. Pasture growth is up 30% and production is up 50,000kg, or around 15% (per head).

“I’m not saying AgLime’s the magic bullet but it’s definitely helped us,” Earwacker adds. “We’ll have a yearly application with from now on. Economically, we’re miles better off.”

Michael Earwacker’s return to a lime regime helped improve his pasture’s performance; 14 months on he notes a 15% increase in production and a 50% cut in supplementary feed costs.

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PRE & POST TUPPING

THE HEAT is being turned up under bobby calf welfare.

Eight organisations that formed the Bobby Calf Action Group late in 2015 say they are well on with initiatives to ensure best-practice handling and management of bobby calves.

Group members are DairyNZ, Dairy Companies Association of New Zealand, Meat Industry Association, Federated Farmers, NZ Petfood Manufacturers Association, Road Transport Forum, NZ Veterinary Association and the Ministry for Primary Industries.

Scott Gallacher, MPI deputy director general regulation and assurance, says some proposals are new, while others already underway are being accelerated.

“There has been a significant body of work underway for some time on bobby calves through a range of industry and

government activities and groups,” Gallacher says.

“The action group is ensuring leadership and co-ordination of best practice in bobby calf management is developed and implemented, and that the public can be confident everybody involved with bobby calves takes the right level of care.

“We saw some appalling video last year and while that was not representative of the industry as a whole, all the groups involved are committed to stamping out bad practice and implementing best practice.”

While the wider group co-ordinates a range of activities, each organisation is developing its own initiatives relevant to their part of the supply chain.

Activities underway

include: ■ DairyNZ working with

dairy companies to make sure autumn calving farmers are aware of good practice and have guidelines on the welfare of bobby calves and humane

slaughter ■ In association with

veterinarians, DairyNZ is developing a workshop -- Welfare Matters, Calf Care -- on bobby calf supply chain awareness, responsibilities and good practice, to start in May and June. It is also developing CalvingSmart, to train junior staff and farm

managers. DairyNZ is also working with farmers and trucking operators to develop and agree guidelines and practical advice on how to ensure calves are fit for transport and loading

■ The Ministry for Primary Industries is proposing new regulations on the care and handling of bobby calves. These have been discussed at two workshops with industry and

animal welfare interest groups and should emerge for public consultation in April

■ MPI will this year visit 1200 farms as part of its On-Farm Verification programme to familiarise farmers with their legal responsibilities

■ MPI has spent $250,000 on a

scientific assessment to help it understand the state of bobby calf welfare; it is examining data over 2015-16, to help make evidence based decisions about bobby calf management

■ The Road Transport Forum is developing and updating its guidelines for bobby calf handling and transport

■ The Meat Industry Association is working with processors to ensure they clearly understand their animal welfare responsibilities along the value chain

■ The Petfood Manufacturers Association is reviewing its code of practice.In addition, MPI

has launched an animal welfare awareness campaign encouraging reporting of animal ill-treatment via a hotline: tel. 0800 00 83 33.

Bobby calf planning

“The action group is ensuring leadership and co-ordination of best practice in bobby calf management is developed and implemented.”


ANIMAL HEALTH 3736 ANIMAL HEALTH

World experts join forces on animal healthANIMAL HEALTH and wellbeing requires greater global cooperation than ever before and New Zea-land has the rare oppor-tunity to participate in discussions which will contribute to the health of farm animals.

Delays in urgently needed treatments for diseases are often caused by a mismatch in global regulatory regimes. This increases costs and often leads to the duplication of studies needed for reg-istering veterinary medi-cines.

Bringing a new veteri-nary medicine to market is expensive and time-con-suming. It takes five to eleven years to complete and costs up to $500 mil-lion. To be efficient, the process needs interna-tionally accepted stan-dards amongst regulators and greater transparency.

One way of doing this is by simplifying the regu-latory process to create a universal framework for researchers and develop-ers -- allowing faster, more efficient approval of bene-ficial medicines.

NZ is a global partner in the regulation of vet-

erinary drugs and for this reason Agcarm has taken an industry observer role on the VICH (the interna-tional cooperation on har-monisation of technical requirements for registra-tion of veterinary medic-inal products) steering committee. Agcarm’s role on VICH is to repre-sent the views of the NZ animal health industry at the global decision table.

With greater empha-sis on the quality, safety and efficacy of veteri-nary medicines, VICH is becoming more important as a coordinated means to facilitate the global reg-istration of veterinary medicinal products, while establishing and maintain-ing consumer confidence.

The principal goal of VICH is to harmonise technical data require-ments of participating

MARK ROSS regulatory authorities before granting drug mar-keting authorisation or registration. Most of the technical work is done by expert working groups, who are guided by the

steering committee. Cur-rent goals include reduc-ing animal testing and costs of development, while increasing the avail-ability of new veterinary medicines and accelerat-

ing the development and review process.

There are few indus-tries in NZ that have the opportunity to engage with and influence global regulators, and meet

with fellow international industry groups. With the current strong drive for greater cooperation in animal health, playing our part is more important than ever.

• Mark Ross is chief executive of Agcarm, the industry association for companies which manufacture and distribute crop protection and animal health products.

COW HOOF ISSUEDIGITAL DERMATITIS is the most serious infectious cause of lameness in dairy cattle worldwide, and now affects New Zealand dairy herds, says Richard Laven, associate professor in production animal health at Massey University.

Typically, digital dermatitis is found on the skin just above the interdigital space, and it may also be found along the coronary band. Digital dermatitis is most commonly found on the hind feet; fewer than 3% of affected cattle have lesions on the front feet only.

The classical lesion of digital dermatitis is a moist ulcer, Laven says.

However, digital dermatitis is a cyclical disease with lesions forming, healing and then returning, so it has multiple stages. The most persistent stage (often called M4) is a chronic thickening of the skin with rapidly spreading growths which can often resemble hairs (in some countries these are called hairy hoof warts).

In NZ the most common appearance of digital dermatitis is a small lesion less than 1 cm in size.

Larger lesions, either when they develop into ulcers or when they are growing, tend to be extremely painful

Digital dermatitis was first identified in Northern Italy in 1974, and is now reported worldwide. The first NZ case occurred in 2004, with sporadic reports until around 2011 when the number increased markedly.

Agcam chief executive Mark Ross.

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38 MACHINERY & PRODUCTS

Four into one

Prize-winning Optum due here in June

THE FIRST production models of the Case IH Optum are now coming off the factory lines, the first examples expected to hit New Zealand in June.

This tractor, made in Aus-tria, certainly turned heads at Agritechnica in Novem-ber last year, where it won the coveted Machine of the Year 2016 Award. It fits between the Puma and Magnum ranges, compact in dimensions and lighter in weight.

It is powered by proven FPT 6.7L NEF engines to deliver 270 and 300hp at rated speed. This rises to a maximum of 313hp as the engine comes under load and is complemented by a max-imum torque figure of 1282NM at 1400rpm. The engine meets the latest Tier4B emission reg-

ulations using SCR technol-ogy and is set up to carry 630L of diesel and 96L of Ad-Blue liquid.

The transmission is car-ried over from the LWB Puma range, upgraded with strength-ened castings, a new rear axle and double planetary final drives to handle the increased power.

Speed is steplessly variable between 20m/sec and 53km/h and the Active Stop feature removes the need to hold the tractor on the brakes when sta-tionary.

A load bearing sump assem-bly acts as a backbone for the tractor and keeps tare weight down; it allows operating weights up to 16,000kg, which helps get the additional power to the ground without compro-mising the agility of the tractor.

As part of the package a rear

lift capacity of 11,058kg com-bines with the ability to lift 5821kg up front, and a CCLS hydraulic system gives up to 220L/min output. The steering and transmission systems are separate.

Completing the package, a new reactive steering system sees the steering wheel return to the straight ahead position after turns to make high speed work more comfortable; and a headland management func-tion (HMC 2) takes care of repetitive tasks in the paddock, as well as offering a remote file transfer system. Connectiv-ity with implements is by the Isobus 3 plug-and-play system.

Though this tractor is rel-atively high-spec, operators wanting high-speed transport ability might opt for the ABS or ABS Advanced option.www.caseih.co.nz

FOUR-ROTOR RAKES have become the pre-requisite for satisfying the enormous appetites of the latest self-pro-pelled forage harvesters and large square balers.

So the launch of the Kuhn GA 15131 machine , with a working width of 14.7m, should warrant a closer look.

Using four 3.65m rotors, with the front pair

carrying 13 tine arms and the rear pairs carrying 15, each tine arm is fitted with four tines. These are driven by the Master Drive gearbox, which car-ries a 200 hour service interval.

Rotors are carried on

four pivoting, large diam-eter wheels and com-bine with the Kuhn 3D rotor suspension system to ensure good ground following, stability and a clean raking action over the working width, adjustable from 9.50 out

to 14.70m. The machine also has

the Kuhn Stabilift system that allows individual rotors to be lowered par-allel to the ground, which stops tines digging in and causing soil contamina-tion.

A central windrow can be created with widths from 1.40 to 2.5m, and the VT 50 series control terminal can carry out pre-programmed sequences for effortless headland turns. Additionally, each rotor

can be lifted individually for a clean finish or to achieve extra ground clearance in difficult areas or poor terrain.

In work, the raking height is controlled hydraulically from the integral hydraulic drive

unit, which also drives the four rotors and offers the option to increase rotor speeds by up to 20% in light crops.

Minimium tractor power requirement is 115hp.www.kuhn.co.nz

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[email protected]

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MACHINERY & PRODUCTS 39

Fortuner will find favour with farmers

WITH SUV sales increas-ing by 20% in 2015 over 2014 it’s no surprise to see Toyota NZ increase its offering from six to seven models with the arrival of the new Fortuner.

Aimed at the upper-middle end of the choices, the Fortuner is labelled a ‘medium-rugged’ SUV, costing less than the Land Cruiser Prado but pre-senting as more hard-core than the ‘medium-soft’ Highlander. Toyota expects to sell 600-700 units per year.

Offered in three grades (GX, GXL and Limited) all

models use the new 1GD-FTV engine already seen in the 2016 Prado and the new Hi-Lux. With 1340kw on tap and up to 450 Nm of torque between 1600 and 2400rpm, these motors burn diesel at around 8.6L/100km.

All ranges are available with a super-smooth six-speed automatic trans-mission, or for those with a twitchy left leg the GX model can be sourced with a six speed manual with the maker’s Intel-ligent Manual transmis-sion (i-MT) that matches engine revs to gear shifts.

Three selectable drive strategies offer Eco, Normal and Power set-

tings, and combine with easy-to-select 2WD high, 4WD and 4WD low range, for those in search of off-road adventure. Indeed, with a separate chassis, double wishbone front suspension, and a four link rear set-up the vehi-cles showed optimum handling, great stability and good road handling during our first limited test drive.

A raft of safety features such as reversing camera, vehicle stability control, hill-start assist and down-hill assist will give novices the confidence to take this vehicle off-road and return safely, and its work capabilities see it offer

2.8 tonnes braked towing capacity, including trailer sway control to keep things on the straight and narrow in difficult situa-tions.

High levels of cabin fit and finish, with thought given to storage areas and cubbyholes, will ensure a place for all the ephem-era we seem to carry in

our cars. Passengers are offered three rows of adult size seats to give seven perches in total, although the vertical stor-age of the third row when not in use cuts into the load space and could do with a re-think.

As one would expect of this type of vehicle, elec-tronics play their part:

the steering wheel con-sole has a 4.2 inch screen for trip information, and a centre console contains a 7-inch touch screen with audio, Bluetooth and satnav functions.

The GX and GXL are offered with cloth trim over large comfortable seats, and the top-end Limited gets the bling --

full leather trim, larger alloy wheels and powered seat adjustment.

A neat touch on the GL and Limited is a powered rear door which can be opened without the driver leaving the seat; and it has a memory function.www.toyota.co.nz

MARK DANIEL

[email protected]

The new Fortuner is described as a ‘medium-rugged’ SUV.

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STAINLESS STEEL ADDS A TOUCH OF CLASS

STEEL MAY be the real deal when it comes to tough bars and accessories for protecting a work ute or city SUV, but it’s often the shiny looks that seal the deal.

In spite of the recent popularity of the matt black finish, more utes and SUVs are going onto New Zealand roads sporting brightly polished bars and fittings made from stainless steel than at any time in the past 30 years.

“It’s the perfect way to make your ute or SUV stand out and offers more protection at the same time,” says Best Bars chief executive Stephen de Kriek.“Stainless steel keeps its shine and good looks for much longer than other materials and it’s very robust.”

Best Bars, also known for its towbars, has expanded the range of stainless steel

products offered under the Advantage accessory brand name to meet the demand of the buoyant ute and SUV market.

The latest Advantage stainless steel range now includes a variety of sports bars mounted behind the cab of a ute, cab protectors, front nudge bars, rear protection bars and side bars or pipes.

The stainless steel range differs from similar imported products, because they are designed and manufactured to a high standard, especially match vehicles and their style, and take account of the safety critical components of these products such as nudge bars and their potential interaction with safety airbags.

“Best Bars sources the best grade and thickness of stainless steel possible for automotive outdoor use – the 304 grade,” says de Kriek. “Good quality stainless steel is very resistant to light scratches and knocks and it keeps its appearance.”www.bestbars.co.nz

MARK DANIEL

[email protected]



Bale feeder ups the anteFEEDER SPECIALIST Hustler has launched a three-point-linkage bale feeder that takes conven-

tional design thinking on this type of machine and turns it on its head.

The company says the new SL360X is the result of 12 months in New Zea-land.

This new multi-pur-pose machine is rated at 1.25 tonnes capacity – 8% heavier and 30% stronger than previous models.

The addition of another fence gives it 1 cu. m capacity; it will pit, loose and maize silage, fodder beet and cut grass.

Improvements have been made to the auto connect and release system using a patented

Snaplox coupler. This ensures accurate con-nect and disconnect every time and incorporates a double latching set-up that is stronger and elimi-nates stress on the loading spears.

Its bale spears have forged points for easier bale penetration. This counters the need to push bales along the ground and risk soil contamina-tion, which can be a major problem with blunt tines.

A new thermo-formed floor design increases height around the feed platform. It also encloses the machine driveshafts to prevent crop build up, reducing maintenance downtime. A redesign of the machine’s headstock makes it easy adaptable to fit to high-capacity front-loaders or telehandlers, opening up the possibil-

ity of feeding over barri-ers or into mixer/feeder wagons. An optional side-shift system allows up to 180mm of offset to the left or right and helps ensure accurate placement of feed in all situations.

Other upgrades include bearing covers, motor protection on the head unit and self-aligning bearings used extensively. These require less greas-ing, extending the routine maintenance schedules.

MARK DANIEL

[email protected]

GOING FOR GOLD!THE VALTRA N174 won the ‘Golden Tractor for Design 2016’ at Agritechnica last year.

To celebrate this, the company’s Unlimited Studio has put the finishing touches to a golden N Series trac-tor.

Heading for a number of special events and exhibi-tions this year, the specially equipped N174 can be iden-tified by its bright golden graphics, tinted windows and golden award logos on the side window. The interior of the cab features a brown leather wrapped steering wheel and seats, as well as an exclusive dark grey mat. Introduced in 2013, the Unlimited concept has been a successful one and the Finnish manufacturer reckons around 10% of all new Valtra tractors are sent to the Unlimited Studio, then delivered to more than 20 coun-tries around the world.

This new multi-purpose machine is rated at 1.25 tonnes capacity – 8% heavier and 30% stronger than previous models.

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MACHINERY & PRODUCTS 41

Feeder’s got it ‘beet’

TRAILERS DEBUT AT NORTHLANDMAKING THEIR debut at Northland Field Days was a new range of trail-ers from Dutch manufacturer Zocon, imported by machinery seller Ag Attach-ments.

The 8-tonne capacity trailers on dis-play had a heavy-duty chassis, with hot-dipped galvanising throughout, which should result in a long service life.

The tandem bogie axle layout includes parabolic suspension for good ride quality, is shod with oversize 17 inch tyres and has hydraulic braking on all four wheels.

The package also includes a hydrauli-cally controlled, auto rear door lock-ing system and full lighting kit.

Optional extras include three-way tipping, oversize low profile tyres and full air braking systems.www.agattachments.co.nz

WITH INTEREST in fodder beet crop increas-ing at a rate of knots, it’s no surprise to see feeder wagon specialist Robertson Farm Machinery, of Hinds, offering a beet chopping attachment for its EX and Mega range of wagons.

Available as an extra on new Combi PR, X or XL wagons – or for retro-fit to existing machines in the field – the units fit on the front left side of the wagon and are powered by a direct drive gearbox.

A rotating drum carries 72 blades which chop against three adjustable grates that can move back under hydraulic pressure in cases of block-age by crop or stones, then auto-reset to allow chopping to resume.

Chop length is adjustable from 50-150mm, and rated output is up to 30 tonnes per hour.

MARK DANIEL

[email protected]

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Quad rollover gear back in the spotlight

MARK DANIEL

[email protected]

Get up-to-date news at www.ruralnewsgroup.co.nzLATEST STORIES EVERY DAY

CPDs may be popular with bureaucrats, but manufacturers are less impressed with their effectiveness.

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WITH QUAD accidents resulting in death or serious injury far too often, a recent stance by Worksafe Victoria has led to con-sternation on both sides of the Tasman.

Worksafe Victoria has declared that crush prevention devices (CPDs) are an appropriate means of controlling the risk of rollover, and they are advising employ-ers that it would be appropriate to fit such devices if they are used in situations where there is a like-lihood of rollover.

Interestingly, with no statute for their use in place, Worksafe Victoria says it will under-take a period of con-sultation over 12 to 18 months, encour-aging employers to fit this type of device, to mitigate their risk of prosecution should an accident occur.

This stance is at odds with the man-ufacturers of such machines who cite extensive research, including accident modelling over the last two decades, that indicates that CPDs are largely ineffective in saving riders from death or injury, and in some cases do more damage than they set out to prevent.

They also note that in Australia, where there are an estimated 350,000 quads in use, 99.6% are ridden without incident, and they suggest that whilst 15 deaths in 2015 are regrettable, they represent a very low percentage when compared to other areas of potential accidents or fatalities.

They suggest far greater empha-

sis should be placed on rider training, to ensure that operators fully understand the abilities and limitations of quads, and also that quads need much more rider input that other vehicles.

They also accept that a quad will not always be the best vehicle for a particular job, or difficult terrain, and suggest that the increasingly popular side-by-side style vehicles already address this issue. This type of vehicle offers more protection via seat-belts and a safety structure over the

seating area, which is not possible with a traditional quad.

Rural News sought Worksafe NZ’s com-ment on the Aus-tralians’ stance, but they cited conflict-ing views on the use of CPDs, saying they are “waiting for more detail and empirical evidence before com-

menting”.For the NZ Motor Industry Associ-

ation, chief executive David Crawford commented that the proposed safety recommendations were at odds with the reliable science on the matter, and also conflicted with recent inquests in Queensland and NSW where coroners found insufficient reason to recommend the use of such devices. The coroners said more time and effort should go into prov-ing the effectiveness of the devices.

Crawford said MIA believes good oper-ator training, wearing good quality safety gear including helmet, keeping children off adult machines and only allowing solo riders on single seat machines was the best approach to the problem.

Worksafe Victoria has declared that crush prevention devices (CPDs) are an appropriate means of controlling the risk of rollover...

THE GAME CHAINGER IS HERE.

The all new SL360X is easier to use, more versatile and saves you more time than any other chain feeder on the market today. With six unique features never seen before... 3 point linkage feeders have just changed for good. Learn more online.

Call the friendly team 0800 487 853 or visit www.hustlerequipment.co.nz

UNBELIEVABLE RUNOUT DEALS ON PROVEN PERFORMERS:

WHEN NOTHING BUT THE BEST WILL SUFFICE:

OR

SL350

CHAINLESS X5000

Call for more details >>>>>>>

Go online to learn the reasons why more Kiwi farmers choose Hustler than any other brand. It’s more than just because we listen...

CHAINLESS 4000

KATIPO 1150


RURAL TRADER 43

10 HALL ROAD, RD5, WHANGAREIPhone 09 438 8907

Visit www.lastrite.co.nz for more quality products

FOOTWEAR LTD NZ MADE BOOTS

HUNTER BOOTS Comfortable, durable and stylish. The heavy duty sole construction makes this a robust boot

designed for climbing over rugged ground. This boot has a soft toe and is made from a thick Mad Dog Nubuck Leather, stitched and screwed construction with a rubber,

replaceable sole, that is glued and screwed. Soft padding for ankle support and D-Rings for your laces are an added

advantage. Great fitting boots full of comfort, ideal for those long hunting and tramping trips.

FARMER BOOTS Lastrite’s Farmer boots are made for comfort. Constructed from Reverse kip leather they are an

ideal farmers, fencers and builders boot. Very sturdy and made to last this boot is robust with a heavy duty construction.

It has a leather insole and midsole that is stitched and screwed construction with a rubber, replaceable sole,

that is glued and screwed. Update your old boots now and you will never look back.

TOP DOG BOX

Phone 0800 625 826www.mckeeplastics.co.nz

❱❱ Accommodates up to 4 dogs❱❱ 6 individual air vents❱❱ Removable centre board❱❱ 2 lockable galvanised gates❱❱ In-house drainage❱❱ Tie down lugs on each side❱❱ Fits all wellside &

flatdeck utes (2 models)❱❱ Raised floor for insulation

$745 inclGST

$525 inclGST

SINGLE DOG BOX

tunnel housesGrow vegetables all year round

Very affordable and easy to install

New Zealand designed and made

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Range of models sized from 2m - 8m

www.morri fie ld .com t/f 03 214 4262 | e [email protected]

Free Range & Barn EggsSUPPLIERS OF:• Nest boxes - manual or

automated• Feed & Drinking• Plastic egg traysQUALITY PRODUCTS MADE

IN EUROPE OR BY PPP❖ A trusted name in Poultry Industry

for over 50 years ❖

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Fax: (09) 236 9321Email: [email protected]

DairyFeed Systems

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PoultryEquipment

PO Box 73 Tuakau 1892Tel: (09) 236 8414


Industries Ltd

PO Box 73 Tuakau 1892Tel: (09) 236 8414


DairyFeed Systems

PO Box 73 Tuakau 1892Tel: (09) 236 8414


PoultryEquipment

PO Box 73 Tuakau 1892Tel: (09) 236 8414


Industries Ltd

PO Box 73 Tuakau 1892Tel: (09) 236 8414


DairyFeed Systems

PO Box 73 Tuakau 1892Tel: (09) 236 8414


PoultryEquipment

PO Box 73 Tuakau 1892Tel: (09) 236 8414


Industries Ltd

PO Box 73 Tuakau 1892Tel: (09) 236 8414


DairyFeed Systems

PO Box 73 Tuakau 1892Tel: (09) 236 8414


PoultryEquipment

PO Box 73 Tuakau 1892Tel: (09) 236 8414


[email protected] www.pppindustries.co.nz

0800 901 902

Stainless Structure construction 1,000 + sheep/hr Fantastic Penetration

With Davey Pump & Honda Motor

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Call: 0800 668 534 Rangiorawww.advantageplastics.co.nz

Full Range of Sizes:

From 1,600 L (1 tonne)to

40,000 L (30 tonne)

• ATV Carrier Mats • Exit/Entry Areas• Calf Trailers • Horse Floats & Trucks

• Weigh Platforms • Bale Mats • Comfort Mats for Wet & Dry Areas

• Utility Deck Matting

Phone: 0800 80 8570www.burgessmatting.co.nz

Rubber Safety Mattingon Duals for more traction, stability, flotation, towing power, versatility.

Be Safer With Clic Duals Wheels

www.clicdualwheels.co.nz

Clic Wheel Systems Ltd, ROTORUA Phone/Fax 07 347 2292

FLY OR LICE PROBLEMS?The magic eye sheepjetter since 1989

Quality construction and options • Get the contractors choice

07 573 8512 | [email protected] – www.electrodip.com

Featuring...• Incredible chemical economy• Amazing ease 1500+ per hour• Unique self adjusting sides• Environmentally and user friendly• Automatically activated• Proven effective on lice as well as fly• Compatible with all dip chemicals• Accurate, effective application

CRAIGCO SENSOR JET

P 06 835 6863 - www.craigcojetters.com

DEAL TO FLY AND LICE

• Cost Effective

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• Unbeatable pricing

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NZ’s Premier Rural Health and Safety Provider

FOR PEACE OF MIND ARRANGE YOUR CONSULTATION TODAY

Freephone: 0508 663 276www.onfarmsafety.co.nz

0800 379 247see it now

DIESELHEATER

www.avonheating.co.nz

DOLOMITENZ’s fi nest BioGro certifi ed

Mg fertiliserFor a delivered price call...

0800 436 566

For a special gift for a special person...How about a personal caricature

EMAIL Malcom Evans [email protected]

©2016 Bombardier Recreational Products Inc. (BRP). All rights reserved. ™, ® and the BRP logo are registered trademarks of BRP or its affiliates. Products are distributed in Australia. by BRP AU. Make sure that all laws and regulations, are respected. Ride responsibly. ^3 year warranty covers MY16 Can-Am Defender models only. * Rotax HD10 engine provides up to 20% more torque than the closest leading competitor, the 2016 Polaris Ranger 900 XP.

CHRISTCHURCHDANNEVIRKEDARGAVILLEGISBORNEGISBORNEHASTINGSHIKURANGI

INVERCARGILL KAITAIAMAYFIELDMILTONMOUNT MAUNGANUIMOUNT WELLINGTON NELSON

NORTH CARTERTONOAMARUPALMERSTON NORTHPUKEKHOERANGIORA NORTH CANTERBURYROTORUASTRATFORD WEST

TAPANUITE KUITITHAMESWANGANUIWASHDYKEWELLSFORDWHAKATANE

TOUGH. CAPABLE. CLEVER.

CLASS LEADING TORQUE* 3 YEAR UNLIMITED KM WARRANTY SPEED LIMITING WORK KEY

BECAUSE A JOB WORTH DOING, IS WORTH DOING RIGHT.

CALL 0800 020 074 OR VISIT WWW.CANAMOFFROAD.COM

Rural News 15 March 2016

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Transcript of Rural News 15 March 2016