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Agriculture and Forestry Minister David Carter said today $20 million would be split between the New Zealand Forest Owners Association, the Foundation for Arable Research and the New Zealand Merino Company (NZMC) reports The ODT. At slightly over $15m, NZMC will get the lion’s share of the funding, and with their own funding input included, the three government-industry partnerships will be worth over $45m.The government funds will be received over five to seven years and Mr Carter said the economic spin-offs could amount to billions of dollars “if the proposals’ scientific and market research and product development are brought to fruition”.

“These proposals are of a very high quality, and stand to deliver enormous returns on investment,” he said.”When the PGP was launched in September last year, the aim was to transform great ideas into research, development, and ultimately products, jobs and growth.”Since then, industry participants have been working hard at refining business plans to provide evidence of how their proposals will add significant value to the New Zealand economy.”

Seven other organisations have to date gained funding under the PGP, which was set up after a $190m commitment from the Government in last year’s budget.

He talked to about 100 stud and commercial farmers, as well as beef industry stalwarts, at a Beef Expo celebratory breakfast, in Feilding, last week reports The Manawatu Standard.Professor Goddard said EBVs work, but there are unknown factors.”We know how EBVs work. But the genes that contribute to them – we don’t know.”He said there were many genes that contribute to factors such as growth rate, meat yield, and fertility, for example, but only one for colour.As if that is not enough of a problem, when it comes to beef breeds, markers need to be relevant across many breeds.

“The problem is that we are measuring a marker, not the actual gene that causes the effect. The marker might be a good predictor for the gene in Hereford, but not in Angus.”Prof Goddard said that means markers have to be really close to the causative gene, that way they have more chance of working in other breeds.People buying bulls for commercial use don’t need to know about DNA at all, he said, rather they could just buy based on EBVs as they do now.”But for stud breeders, they have to decide whether it is worth getting DNA tests for their bulls or cows in order to get more accurate EBVs.”

Getting DNA tests could allow breeders to ascertain whether an animal is good far earlier than usual, Prof Goddard said.”If you want to select a bull whose daughters are fertile, for example, at the moment you have to do a progeny test on the bull and that takes years. Whereas the DNA test is available at birth, so if you had a good test for female fertility, you could select bulls for that when they were calves.”"At the moment, tests are about $200. Our calculations say if it was reasonably accurate, that would be worthwhile.”He was hopeful the cost would come down as the test becomes more common in the future.

From the Livestock Improvement Corporation’s (LIC) website, the dairy industry is using DNA results to come up with better dairy cows.

 Yesterday Fonterra startled the industry and financial circles by following up a respectable opening forecast payout of $6.90-$7.10/kg milksolids for the season, which begins next week, with a longer range forecast of a possible $8-plus final season payout – if international dairy prices and foreign exchange rates hold at current levels.The opening forecast, which combines a milk price of $6.60 and a forecast distributable profit of 30-50c/kg, means around $650m more for the economy in the 2010-2011 year – but an $8-plus payout would mean a $2b economic bonanza, says Bank of New Zealand head of research Stephen Toplis.The $8 payout would mean a close to $1m income for a farmer producing the industry average of 120,000kg in the season. Out of this has to come the farm’s running costs, tax, labour, family costs and new Emissions Trading Scheme taxes reports Stuff.

Fonterra heavily stamped its new season forecasts announcement with cautions about market volatility, big swings in foreign currencies and economic turmoil overseas.The expectation in the industry is that farmers will keep their wallets firmly shut while they repair balance sheets battered by the global economic crisis and recent drought in some regions. They would reduce debt run up before the payout dropped like a stone overnight last year on the back of plummeting international market prices.Fonterra chairman Sir Henry van der Heyden said many farmers had suffered financial hardship and would use the higher payout to get their books in order. Mr Toplis said New Zealand farmers would be “wealthier” as a result of the payout hike, but it gave them a choice whether to invest more, save more or spend.”In the current environment one would assume they would probably save more than in past cycles.

“There is a golden opportunity now to get the dairy sector back on its feet, not just on its feet, but sustainably. The choice is in farmers’ hands now. Twelve months ago it was not in their hands because they were in dire straits.”Farmers would want to avoid a repeat of 2008-09 when the payout forecast went to a record $7.90, sparking speculation that it would end the season at $8.50 or $9 and prompting farmers to borrow accordingly, Mr Toplis said.The federation’s dairy chairman Lachlan McKenzie reminded farmers that this time last year the opening forecast was only $4.55.”I should add that current Ministry of Agriculture modelling shows that it costs a staggering $4.88 to produce one kilogram of milksolids …”

 Fonterra said it intended to retain 25 per cent to 35 per cent of the forecast 30c to 50c distributable profit.

AHB chief executive William McCook said the prosecution showed the AHB would take action against farmers who fail to abide by livestock movement regulations. “It is clearly unacceptable that one man put his fellow farmers at risk for his own pecuniary gain. Selling cattle from a herd that is suspected or known to harbour bovine TB could have serious consequences for the national TB control programme. “We know a vast majority of the 73,000 cattle and deer farmers in New Zealand willingly comply with movement control restrictions and expect us to come down hard on those farmers who do not.

“This conviction sends a clear message to the farming community that the AHB will vigorously enforce the rules around the movement and sale of infected herds. “This complements the other methods we use to control the spread of TB such as monitoring compliance by checking animal identification and status declarations at sale yards and shows. “We also audit animal movements out of movement control areas, investigate overdue TB tests, act on complaints and, as with the Muir case, take action through the courts when necessary,” Mr McCook said.

“When it finished, there was a big sigh of relief of not being in the fish bowl and we were quite happy to not have any of that stuff happen for a little bit.” But with the benefit of time, he and wife Stacey realised they had got a “huge amount” out of the Meat & Wool New Zealand scheme, Mr Young said. “It improved our farming out of sight and was worth a lot of money to us.” Their profit more than doubled, he said.

The growth did not just come from a rise in lamb prices – returns were up in the third year even if the lamb price from the first year was used – but from a significant rethink on farm systems and diversifying where the farm income came from.

Many monitor farms had focused on lifting production levels to generate more income, but the Youngs wanted to lift the farm’s profitability by finding other ways of making money from their 460ha. Production was a factor in boosting profit, but a change in the mix of products and the way they farmed helping achieve the most benefits.

Better pasture management did bring production gains, and to a lesser extent a shift in breed from romney to grow bulk ewes, a romney-texel-poll dorset cross. This shift in breed was starting to pay dividends now but it was looking beyond his traditional land- use mix that made the biggest difference.

The lambing percentage did not lift dramatically, with salmonella brandenburg a problem last year, but average growth rates improved. Even though they were killing at the same time, average weights had lifted from 16-17.5kg to 17.5-18.5kg, Mr Young said. They had been understocked and were letting the spring and early-summer grass get too long and lose quality. By getting on top of that feed, they were able to produce better feed through the rest of the summer and that helped keep lamb growth rates up, he said.

A steak from a limousin-angus heifer raised by sisters Kathy Child and Yvonne Hill, of Whangarei, was judged the overall winner while an angus steak from Chef’s Choice, Whanganui, won the overall best of brand section for retail and wholesale butcheries. Angus also took out the first three places in the best of British breeds section. The four-day expo in Feilding is a shop window for many breeders who will be hoping to lure breeders and commercial farmers to their on- farm sales over the next two months reports The Dom Post.

Scottish cattle judges and angus breeders John and Marion Tilson chose a hereford as their champion bull of the sale, with an angus as reserve. The hereford, owned by Charles and Margaret Lee, of Leelands, Elsthorpe, was described as “a powerful bull with a lot of meat on it”, and later sold for $9000 to Bruce Robinson, of Kokonga Stud, Waikato.

When the angus bulls came up for sale the auction venue was filled to overflowing, reflecting the breed’s sudden lift in popularity since its steak of origin success in recent years and last year’s McDonald’s angus burger deal which has seen a premium paid for beef meeting the AngusPure contract conditions. The high point of the angus sale was a line of bulls from an evaluation trial, a group of young bulls gathered from throughout NZ and run together for 12 months while they were weighed, analysed and evaluated. One of the best of these, Turiroa Power, from Rick and Andrew Powdrell’s Turiroa Stud at Wairoa, fetched the sales’ top price of $26,000. The buyers were Colin Williams and Charlie Dowding of Kaharau Stud, Gisborne.

Auctioneer Bruce Orr, of PGG Wrightson, said the bull had good growth figures and was well- muscled, but what most excited bidders was what he described as its x-factor, an air of supreme self- confidence. Nine other angus bulls sold for five figures and the sale average for 34 bulls was $8425, well above last year’s $6650 average.

The expo’s other sales, of shorthorn, murray grey, simmental, south devon and charolais, were tame by comparison. The simmental sale was the most disappointing, with only seven of the 14 animals catalogued selling.

He said two hill country farmers he spoke to said there seemed to be a greater awareness of the erosion problem coming from the hills reports The Manawatu Standard. The sustainable land use initiative (SLUI) programme was developed around voluntary whole-farm plans which assess the farms’ physical, environmental and business resources in a structured way. They are funded by Horizons in partnership with the Government on a dollar-for-dollar deal, through MAF’s hill country erosion fund.

“The two farmers were enthusiastic supporters of the whole-farm plan approach and working with the council to develop planting programmes for the highly erodible country, ” Mr Carter said. He asked the farmers if there was more acceptance amongst the farming community for erosion protection. John Cousins, who farms at Pohangina, where the helicopter landed, said 10 per cent of the property was now planted. But he had not lost any production and carried the same number of stock as he had before the planting, he told the minister. Craig Mitchell, Horizon’s group manager of environmental management, said there are 245 whole farm plans, of which 203 are being implemented. These projects have translated into work on the ground, all aimed at reducing sediment yields from hill country into river systems and include more than 150 kilometres of fencing; 1325 hectares of forestry planted; 19,100 space planted poplar and willow poles; 700 hectares of riparian retirement.

The other 42 which had had farm plans done were on hold, as the farms were on the market or they had experienced a bad year, or other issues, Mr Mitchell said. “We’ve arbitrarily capped whole farm plans at 100 a year and we have no trouble getting that 100 a year because that is what can be managed by the people involved and funded by the community.” He said the idea is that by year 13 or 14, there will be 1500 whole farm plans done and they’ll be implemented.

About 50 people attended the field day, including dairy farmers, biological agriculture staff and Massey University staff. Mr Williams said he and his wife have 400 cows, of which half calve in spring and half in autumn. This autumn is the first season the Williams’ have kept their replacement heifers, and a few calves being raised for beef, on their mothers.

“It’s not new; our grandfathers used to leave calves on the cows. Why have we been rearing calves with all the extra work? Nature designed the cow to look after her calf. And, so far, it’s working really well. The cows and calves seem happier.” The calves were kept on the cow through until weaning, and the cows were also milked during that time.

The few beef calves that were kept were going to a beef rearer in a few days. They had been with their mothers for several days and the beef raisers were happy they were in better health as a result. The field day emphasised to farmers that keeping soil health good was vital for pasture growth.  “Farming biologically meant farming sustainably, both environmentally and economically,” Mr Williams said.  It meant farmers could shift from being “environmental sinners”, to “environmental saviours”, an Abron biological representative said.

Mr Williams said they changed from conventional dairy farming to biological farming two years ago. From five years ago, cow numbers have dropped by 80. “When we went to a biological system, we saw positive differences in six months, such as more even grazing (fewer clumps in paddocks), a complete reversal of mastitis, and last year we had no losses at calving.”

Mr Williams said the dairy industry had become too focused on increasing production, rather than increasing profit. He thought his costs were down by about $1 per kilogram of milk solids as a result of going to a biological system.

Before buying his Agpac bin, he used to throw the wrap in a heap, hoping it wouldn’t blow away. When he went to clean it up six months later, the stinking pile was always full of water. He burned the wrap because he had no other way of getting rid of it.”It didn’t matter what you did, you would still have piles of silage wrap. It’d take a whole  day in spring or summer to clean up. It’s dirty, wet, s….y stuff and it blows all over the place.”

The bin cost him $500, and liners cost $30 each. He rolls the wrap neatly so he can put as much as possible in the liner.  ”I used to just throw it in, but you learn as you go. Now I put it in properly.” A lid prevents  water getting inside the bin, and clips on the side allow the liner to be extracted easily. When the liner is full, he puts it on his ute and drops it at Inglewood contractors Ken G Moratti Ltd.

”What puts you off is the initial $500. But I don’t regret spending the money because of the time I save.”And the farm is much tidier there’s no wrap lying in heaps, and it doesn’t blow around. It’s definitely made my life easier.” He said he hoped that the cost of the liners would fall as more farmers recycled their wrap,  allowing the recyclers to make money from it.