Freezing works in jeopardy
Up to five NZ meat processing plants may close in the next few years, with the loss of thousands of jobs, as the industry is forced into another round of restructuring due to falling sheep and beef numbers. Sources believe up to three sheep processing plants may have to close in the South Island and two or more beef and sheep plants in the North Island. The chairmen of the country’s two largest meat co-operatives, PPCS and Alliance Group, agreed there would be consolidation as farmers reacted to low meat returns by changing land use, but they would not be drawn on which plants they thought would be closed. However, they said it was an industry issue and it should not be left to co-operatives to carry the burden.‘‘Consolidation will happen eventually. There will be rationalisation and all companies have to be involved,’’ PPCS chairman Reese Hart said, when approached for comment.He said the south of the South Island was ‘‘a big worry’’ because of changing land use to dairying, but added nothing would happen for a couple of seasons as the stock balance gradually shifted from sheep to dairy cows. more>>>

Shearers wary of dairy juggernaut
The number of sheep shorn in the south is falling up to 10% a year in the wake of a dairy juggernaut leading farmers to turn their backs on wool, some shearing contractors say.Shearing contractors throughout Southland and Central Otago said because of the good weather work was on schedule as the shearing season geared up but that went hand-in-hand with a drop in the numbers of sheep shorn. The losses were not just down to the number of farms being converted to dairying but also the fact non-dairy farmers were offering their land to the dairy industry for grazing and the growing of feed crops. "I think a lot of it has to do with prices. A lot of them (farmers) are not shearing twice and there is a decline in sheep." Alexandra contractor Peter Lyon said in Central Otago, where the wool industry is mainly merino based, rather than cross-bred sheep, any decline in sheep shear numbers was more a result of economic factors rather than dairying. While returns for fine wool such as merino were stronger, contractors still faced the problem of increasing costs in harvesting a product that was not delivering in terms of price. more>>>

Dairy price holds up rural property sector
Rural properties, particularly those with dairying prospects, appear poised to withstand a softening in the real estate market in 2008.
According to a Massey University survey of rural real estate professionals, most are predicting a moderate to large increase in sales in the three months ending February 2008. Bob Hargreaves, director of the university's Real Estate Analysis Unit, said strong prices for dairy products were bolstering property values. ‘‘Anything that's flat land with either dairy or potential dairy is looking good,'' he said. Of the 35 professionals surveyed - who included realtors, valuers and real estate lawyers - 28% said they expected to see a large increase in sales and 36% predicted a moderate increase. Mr Hargreaves said the same optimism was not reflected in hillcountry properties. ‘‘The outlook for hill country is not so good because the prices farmers are getting have been down. ‘‘In some parts of the country, they've had prolonged dry weather, so the cash isn't there at the moment.'' Looking ahead, Mr Hargreaves said NZ would fare well if global food prices continued to rise. more>>>

Co-op no comparison
Fonterra has labelled a comparison between its plans to list on the stock exchange by 2010 and a German co-operative that went down a similar path as misleading.Tom Hind, chief dairy adviser for the National Farmers' Union in the UK, said the chairman of German co-operative Nordmilch, Stephan Tomat, had resigned earlier in the year following farmer backlash in response to listing 25 per cent of its shares on the stock market. But Alex Duncan, Fonterra's general manager of strategy and economics, said Nordmilch's problems stemmed from lack of performance, rather than changes to its capital structure. "This has no relationship whatsoever to Fonterra which is performing well, is forecast to return a record payout to shareholders this season and has a clear strategy focussed on growth which the capital structure preferred option is designed to support," Mr Duncan said. Fonterra farmers,, will vote, in May, whether to transfer the assets and liabilities of the present co-operative to a new company. The new-look Fonterra could be listed following a second vote, which would require a 75 per cent majority, before 2010, offering 20 per cent of its shares to the public. more>>>

Balancing act for Alliance newcomers
The two new Alliance Group directors are promising to pursue changes to the company demanded by shareholders, but accept they have to work within the confines of collective board responsibility. One of those new directors Mark Crawford said in an interview that while he had to come up to speed with the meat company’s strategic and business plans, he still wanted to advance some of the policies on which he was elected.‘‘We stood on a plank of better consultation and communication with shareholders and we want to see that happen,’’ he said.He also wants to see more transparent livestock procurement policies and the company phase out dealing with third party or stock traders. Mr Crawford and fellow Southland farmer Jason Miller were elected earlier this month to the Alliance Group board, unseating the company’s chairman of the last 10 years, John Turner, and another director, Murray Taggart. ‘‘Having a mandate gives us an opportunity to get some of those changes through.’’ more>>>

Bees to vanquish varroa
NZ researchers say they have bred honeybees which are not only resistant to varroa mites, but fight back by making the mite larvae sterile. Using bees selected from around NZ, Hortresearch honeybee scientist Mark Goodwin and his team have been crossing breeding lines of bees to increase the levels of a natural resistance in the population. "It's a tricky business, requiring the careful artificial insemination of queen bees in the lab," Dr Goodwin said. "We've been able to breed bees whose hives render up to 80% of varroa sterile," he said. "The problem is that the process is expensive and time-consuming. "We could never rely on artificial insemination to supply the amount of bees needed to continuously replenish the resistance genetics of NZ's 300,000 commercial beehives." The idea to breed "resistant" or "tolerant" bees came from overseas research which showed that varroa mites emerging from certain hives were unable to reproduce. This is due to a genetic trait found in a few bees called "delayed suppression of mite reproduction" or SMRD.
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Grass silage production well down on last year
Grass silage production is down by 70% from last season and is expected to put more demand on cereals for whole-crop silage.
Arable growers have told dairy farmers to let them know quickly if they want wheat, barley and triticale crops prepared for silage. Grass growth has been hindered by dry and cool growing conditions and despite showers this week, the long-range forecast is for more dry weather. The Sth Canterbury chair of the Grains Council of NZ, Jeremy Talbot, said growers needed an idea of the demand for whole-crop silage so they could switch from grain production and plan the crop's fungicide requirements. He said more fungicide was required for silage-making to give the crops the maximum "stay-green factor". Crops had a 28 to 42-day witholding period before silage could be cut and to ensure there were no residues, he said."We have only made 30% of our silage throughout Canterbury, and parts have not made any at all. Even the Lincoln University dairy farm is down. The only option for them, and it is not a bad option, is whole-crop silage, but dairy farmers need to make their requirements known." more>>>

Sheep farming in crisis
A stampede to leave sheep farming because of poor returns is as serious as some landholders have seen. Sheep farming now is worse than it was in the crash of the mid-1980s and the exodus from the industry will force meatworks closures, say S Canterbury farmers. "We are going to see works closures," says John Macaulay, from near Otaio. "I don't think I've seen a situation as serious in the sheep industry in my life, even in the 1980s." Then, the removal of subsidies and an economic downturn was compounded by drought and over twenty local farmers took grants to leave the industry. Now it is a third season of poor prices, climbing costs, and demand for dairying or dairy support land that is driving farmers from the sector. M&WNZ forecasts the SI lamb kill will drop from 14.2 million to 13.6 million in 2008/9, but Mr Gregan fears that figure is conservative. "My feeling is it's just huge. I've got six neighbours and five are changing (to dairy or dairy support): only one is staying in sheep." "This downturn isn't just affecting farmers: it's going to affect meatworkers, drafters on the roads, everybody in the industry; that's why we need to look at this together and address it." more>

'Wool price gains can be captured'
NZ Wool Services International is confident long- term price gains can be captured for wool growers if the right infrastructure is implemented. WSI Purelana manager Malcolm Ching says his company recognises there will not be a wool industry in the future if current problems are not addressed. “Everybody in the sheep industry realises the situation for sheepmeat and wool – especially for coarse wool – is in a crisis situation, and has been for some time,” he says. “If we as exporters who are closely linked to the fortunes of wool farmers, do not take some major initiative and try to put some other ways of marketing NZ wool in place, then we won’t have an industry in the future.” WSI is receiving a positive response from growers to its Purelana forward contract initiative, with the first wool already being processed at its Whakatu scour in Hawke’s Bay. “In the long term we are confident if we get the right infrastructure in place, there are excellent price gains to be captured for NZ wool in the future,” says Ching more>>>

Dairy Trust on target for 08
Dairy farmers are cashing up their Fonterra shares and switching to rival dairy company Dairy Trust.Plant manager Mike Butler said the benefits will be huge. With no shares or capital contribution required to supply Dairy Trust, farmers could free up to $1 million in Fonterra shares, he said. "Farmers are using that money to pay off debt or buy that holiday home in Queenstown, but most are expanding. They are investing in land, building another cowshed and buying more cows," Mr Butler said. Dairy Trust's payout won't quite match Fonterra's, but it will be competitive. Mr Butler said suppliers would receive at minimum no less than 25 cents per kilogram of milk solids below their rival. "For example, if Fonterra is paying $6.90 (kg/MS), we won't go below $6.65." There were also bonuses for volume supply, low somatic cell counts and for supplying milk on the shoulders of the season, which would boost the final payout to within a few cents of the Fonterra payout. Mr Butler said a new dairy company in the country's fastest growing dairy region was long overdue. more>>>

Care with body condition in dry
"We get dry periods like this most summers," said Louise Cook, DairyNZ Manawatu/Hawkes Bay. "The difference this year is that it is happening much earlier in the season. Nobody expects summer dry to begin in November!" "The key to minimising the impact this summer and to position farms well for autumn and next season is to focus on cow condition and pasture cover." Minimising body condition loss during this dry period, so that the herd calves in a body condition score of at least 5, is essential for high production next season. Reduce your stocking rate earlier rather than later. Dispose of empties and culls and continue to feed the cows you intend to keep as well as possible. "Don't take passengers through a dry, look after the cows you want to milk next season." Further reduce feed demand by progressively drying off low producers, this will mean you can put some cows on restricted feed levels without losing more body condition. more>>>

Big dry biting at farmers
Store lamb sales have been sticky and some have sold for less than $1 per kilogram. Many farmers are facing tough times as they're forced to offload stock in the continuing dry conditions. Poor store lambs have been hard to sell. But Friday's Feilding stock sale and Dannevirke's Thursday sale saw the market lift a bit with a stronger buyer attendance, say stock agents. Medium lambs made between $29 and $32, while good store lambs made about $45. While that's still not enough to cover the costs of many producers, it beats recent ewe sales in the South Island. Some clearance sales were cancelled because there wasn't any interest in ewes. Conversions to dairying along with poor sheep meat prices have fuelled the lack of demand for sheep. In the southern North Island, many hill-country farmers, hit by the dry conditions, have little lamb feed. And although prices are not good, they have been forced to sell their stock to lighten the load on their dwindling pastures. more>>>

Clover Root Weevil bio-control roll-out gathers steam
Following excellent results from experimental releases at selected sites around the North Island, AgResearch entomologists are busy rearing thousands of parasitised weevils for large scale distribution to farmers, thanks to support from DairyNZ and M&WNZ. The first batches of parasitised weevils were given away at a farmer field day at Heritage Valley Dairy farm, Henderson’s Road, near Hamilton last week. AgResearch Clover Root Weevil programme leader for the North Island Dr Pip Gerard, reported on the progress of the biocontrol agent as well as latest research on how to get better clover establishment and persistence. “The advantages and economic benefits of using a break crop to reduce weed and pest burdens prior to establishment of new pasture are significant,” says Dr Gerard. “We’ve compared pastures sown in autumn 2004 under different establishment regimes and three years later the pasture quality is significantly superior in the ex-crop pastures compared to the grass to grass pasture. In addition, the trial results on this farm indicate further economic advantages would be gained by using clover-friendly tetraploid ryegrasses in dairy systems. more>>>

Rivals praise Turner's contribution
Dumping long time Alliance Group chairman John Turner from the board was done more out of frustration about low returns than with a cool head, says one of his main industry competitors.The frustration was understandable but the industry needed to be careful that it was not pitting one part of the pastoral sector against another, and to make sure it was focusing on fundamentals, said Anzco group chairman Graeme Harrison.The commodity cycle would bring lamb back into favour again, just as it did with dairy products in a sharp turnaround towards the end of 2006, he said. In the meantime, Turner was a victim of circumstances being voted off the board at the annual meeting, after providing "outstanding service'' for Alliance Group. Jim Pringle was chairman at rival PPCS for most of the time Turner was a director of Alliance Group. "I can feel for John because he worked hard for them for 20 years, but the board failed to read the signals from farmers, and the chairman gets the blame for that.'' Pringle, who retired last year, said when PPCS said at the start of this season that it would do away with the third party supplier bias, Alliance had had a chance to follow suit, but missed the opportunity. more>>>

Sheep lifeline critical
NZ’s sheepmeat industry needs a massive capital injection by Govt to kick-start a new single seller marketing lamb under the ‘NZ Incorporated’ banner. And funding of this initiative could come from sale of Landcorp sheep and beef farms, says former NZ Meat Board director John McCarthy, Ohakune. He saidt the crisis facing meat producers is comparable with Air NZ’s situation when it required a huge infusion of Government capital to bail it out of a debt problem. Meat companies’ debt has brought on a crisis that is virtually irrecoverable with current industry models, McCarthy says. But no more money – farmers or Govt – should go to the meat companies under their current arrangements. He says they have proved ‘totally without honour’ in their cutthroat procurement wars. Because it’s all about procurement and not marketing, destruction of the NZ lamb brand is reaching the point where the situation is hopeless. ‘NZ lamb is a sterling product that has been undersold and wrecked.’ He suggests joint ventures between NZ, UK and European lamb producers to make the most of a mature market where lamb is a preferred protein option. more>>>

Wrightson snaps up phone-man
Christchurch's PGG Wrightson has hired highly successful former Vodafone NZ boss Tim Miles to drive a better performance from the rural services company. The appointment follows ex-Fonterra chief Craig Norgate taking the chairman's position at PGG Wrightson after the retirement of Bill Baylis at the end of October. Some regard Norgate as the behind the scenes driving force at the company. Norgate was the deputy chairman after he and Dunedin's McConnon family joined forces to take a controlling stake in Wrightson in mid-2004 in a hostile takeover bid. PGG Wrightson announced yesterday that Miles, a former managing director of the mobile phone company in NZ and the UK, would become managing director at the rural services company from March. PGG Wrightson chief executive Barry Brook will step down and move to group general manager for South America where PGG Wrightson had "growing interests". more>>>

National velvet award results
Winning the prestigious Allcomers Trophy was poetic justice for Winton elk breeder Dave Lawrence.Mr Lawrence picked up the overall award at the National Velvet and Hard Antler Competition in Invercargill last week when his 7-year-old elk bull Kobe cut 17.34kg of velvet. "I'm pretty chuffed," he said. "It doesn't get better than this." Kobe, a home-bred bull, is the great-grandson of Blue 116, a Canadian elk bull imported by Sir Tim Wallis in the early 1980s. Ironically, it was Sir Tim who presented Mr Lawrence with the Alpine Trophy, as winner of the elk supreme section. Competition convener Peter Allan said deer farmers were continuing to set new benchmarks for three-year red velvet. Weights in this section increased by an average 2kg on last year. "It's a strong indication that farmers are utilising the latest genetics," Mr Allan said. The winner of the three-year red section was Regan Blair, of Ashburton, with a 7.1kg head from stag Bobby. Balfour stud breeder David Stevens took out second and third with stags Bonhomme (7.6kg) and 71-04 (6.4kg) more>>>

Johne ’s Disease Research Consortium
A new joint venture aims to help NZ farmers manage the costly effects of the animal wasting Johne's disease, which is estimated to cost up to $88 million each year. The Johne's Disease Research Consortium (JDRC) is a combined industry and Government initiative which will unite and accelerate Johne's disease research. AHB Director and Intervet General Manager, Andrew MacPherson, who has been appointed as the Independent Chair of JDRC, said the aim was to develop and use the most efficient and effective tools to reduce the prevalence of Johne's disease on NZ farms. The JDRC brings together M&WNZ, DairyNZ, DEEResearch, Massey University,Livestock Improvement, AgResearch, the University of Otago and the FRST. “This is disease has a significant impact on animal health and production," Ag Minister Jim Anderton said. "So this consortium is an excellent example of industry and government collaboration to make some serious gains in combating the production losses caused by Johne's Disease". more>>>

Venison: Sustainable positioning of NZ important
Deer Industry NZ welcomes the NZ Trade and Enterprise Report into UK consumer attitudes toward sustainable food production. DINZ is a member of the Sustainable Food Exporters Group which works in partnership with government to address challenges to the environmental credentials of NZ food exports in the international market.DINZ CEO, Mark O’Connor said the report captures the threats and opportunities food exporters face in the rapidly changing global marketplace.“While the UK is a relatively small market for NZ venison, experience shows that trends which emerge among British shoppers often migrate to other European countries, which are more important markets for the NZ venison industry. The report released today provides exporters with valuable intelligence on consumer attitudes to issues surrounding sustainable food production”. more>>>

Alliance shareholders vote for change
Price grizzling has taken its toll, ousted meat leader John Turner says. The Alliance Group's chairman, on the board of directors for 20 years, put his demise down to deep dissatisfaction within the industry. He and fellow board member Murray Taggart were removed by a Southland-driven bloc of voters at the meat company's annual meeting in Christchurch that sent shockwaves through the lamb trade. Turner refused to accept the roll-over was a call for change or that the meat company's trading -- better than its competitors -- was at fault."Farmers are hurting out there and I guess they wanted to kick something. Alliance is the star performer, but we seem to be taking all the flak driven by our own shareholder grizzling by the pricing."He would leave knowing he had always been "frank and open" during his leadership.Since entering the board in the 1980s the Mossburn farmer has seen Alliance grow from a Southland business to a South Island-wide co-operative of $1.1 billion turnover with one northern plant. more>>>

Strong start raising calves
About 5000 calves are being raised at the Sth Island's largest calf-rearing unit in its first year. The Dunsandel business owned by Stu and Nikki Cameron will have sold 3000 of the calves to finishing farms and lifestyle blocks in a six-week window ending next week. Stu Cameron said there was later demand for calves than previous seasons. The business was supplying calves South Island-wide and in the North Island. "Last week we had 10% of our calves go out in a day." At the new operation on ex-forestry land they have the potential to raise production to between 6000 and 7000 calves a year. They are increasing calf numbers when other businesses are downsizing or getting out of the industry. Cameron said the business's economy of scale had allowed them to absorb some price increases. "Our (milk) powder has gone up and that has squeezed a lot of rearers. We are not as powder dependent as other rearers, but it is still squeezing our operation by $7 to $8 a calf." more>>

News even better for dairy farmers
The news keeps getting better for dairy farmers, with yet another increase in their record payout set to put an extra $3 billion in their pockets this season.And the final payout could be even higher. The milk boom could continue its stratospheric run to a farmer payout as high as $8 a kg of milk solids for the 2008-09 season if commodity price rises continue. Yesterday Fonterra increased its payout projection for this 2007-08 season by 50c to $6.90 a kg on the back of record global demand for milk products. Lincoln University agribusiness professor Keith Woodford said the final payout was unlikely to alter greatly because earlier forward sales would influence the end-of-season result. Prices from early in the production year were lower than currently, particularly for cheese and butter. "I am scared to put a number [forward] because it gets a bit unbelievable, but it is certainly not impossible next year to be talking around about $8. But there is a really big `if' in that because nobody is selling that far forward." more>>

Saving for a rainy day
If there's one thing that can rob a calf rearer of a good profit, it's the prospect of a long, hot summer and a dried-up province. Parched pasture and no sign of relief to an early drought had a dampening effect on prices at weaner calf sales in Golden Bay and Brightwater, with farmers unwilling to gamble with the weather. Near Takaka, about 400 calves were penned a couple of weeks ago, with 290 selling at $50 to $100 less than last year, according to veteran calf rearer Duncan McKenzie. Luckily, he sold 140 friesian bull calves that were just over 100kg on contract for $320, but even that is well short of the $400 he was getting for friesian-hereford-cross bull calves last year. "The same calves this year were struggling for $300." Meanwhile, the lower prices at this year's sales haven't put off McKenzie, who says he'll be back rearing calves next year as usual, regardless of the outlook. more>>

Milk safety debate expert paid by Fonterra
A key figure in the milk-safety debate has admitted he was paid by Fonterra to act as an "independent" nutrition expert on the A1-A2 milk issue. In 2005, University of Sydney Professor of Human Nutrition Stewart Truswell wrote what has become a much-quoted research paper concluding that any apparent evidence saying A2 milk had advantages over standard A1 milk - which is produced by Fonterra - was flawed. But he did not disclose he had previously been paid as a consultant by Fonterra, nor that the giant dairy company had used him as a principal scientific witness in intellectual property legal hearings against the A2 Corporation, which owns the licences and patents for A2 milk. Some scientists have since questioned parts of the evidence Truswell used to come to that conclusion on A2 milk, claiming one of the studies he quoted had been confounded because of the contamination of the milk fed to rats and mice. They also say he ignored relevant evidence supporting the A2 case. more>>

High noon today for Fonterra payout
Dairy farmers will be glued to their TV sets at noon today as Fonterra updates its payout forecast. Predictions are that the figure will be up again on August's forecast of $6.40 per kg milksolids, itself a record."From the meetings we've had $7 is probably getting pretty realistic now," said Jim Stevenson, chair of the Sth Canterbury Dairy Farmers of NZ. The extra payout would be good for the industry provided farmers made sensible use of it, he said. Those developing farms would be wise to do their sums with the possibility of a $4 per kg milksolids payout in future in mind, he suggested. Westpac economist Brendan O'Donovan said "It's fantastic news for the economy and farmers are certainly responding to the higher cashflow and prospect of a couple of good seasons. Rural land values are up about 55% on where they were a year ago," he noted. However, global skimmed milk powder (SMP) prices had already gone off the boil."Those high spot prices couldn't be sustained but the main supply response is still 18 months away so we think the price will remain pretty elevated for some time yet," he added. more>>

Fertiliser price rise will sting
The price of fertiliser for the region's farmers has skyrocketed, with two fertiliser companies having raised prices this week and a third set to do the same later in the week. "It's a bloody disaster. This could cripple the hill country farmer," said Taranaki Fed Farmers chair Bryan Hocken. Ballance Agri-Nutrients increased its prices on Monday, while Ravensdown put its prices up yesterday and Summit-Quinphos (NZ) Ltd is doing the same on Friday. Prices for some kinds of fertiliser have risen by as much as 22% this week, while some have risen 36% in the past 11 months. The three companies are blaming the increase on rising international prices for rock phosphate and sulphur and higher shipping charges. While most dairy farmers have already applied their fertiliser, many sheep and beef farmers tend to put it on in the autumn. Mr Hocken says this year has been particularly bad for the sheep and beef farmers. "Hill country farmers are being screwed to death from all angles. "Those selling store lambs for $1.20 to $1.30 per kilo, it is not sustainable. Wool is well under $3 per kilo. "Farmers that haven't been able to apply fertiliser before are not going to be able to afford to put any on now." more>>

Judges 'blown away' by velvet heads
Investing in good genetics is paying off for the country's deer farmers. That much was evident when the 26th National Velvet and Hard Antler Awards were judged at the Ascot Park Hotel in Invercargill yesterday. The 12 judges were "blown away" by the 3-year-old velvet heads of 7kg-plus and hard antler heads with scores in excess of 500 SCI (safari club international). Hard antler judge Alan Stewart, of Waikaka, said some of the best heads in the world are here, Velvet judge John Fogarty, of Wanaka, said the velvet heads were extremely well presented."I've never seen so many 3-year-old heads that exceed 7kg. I'm simply blown away," he said. Production from this age group had doubled in recent years because farmers continued to invest in good genetics, Mr Fogarty said. more>>

Deal signed for A2 milk in south
The battle for the hearts of milk drinkers has begun, with alternative A2 milk poised to flood supermarket shelves around the South Island. Northland milk-processing company Fresha Valley has signed a deal with giant grocery consortium Progressive Enterprises to supply A2 milk to 150 supermarkets throughout the country. The milk, which does not contain the protein in standard A1 milk that some link to illnesses such as type-1 diabetes, heart disease, autism, and Crohn's disease, is expected to be on sale in more than 60 Countdown, Woolworths, SuperValue and Fresh Choice supermarkets in the South Island by Christmas. The deal will see the price of blue-top A2 milk plummet from around $8 for two litres to about $4.50. NZ's dominant milk type, A1, produced by Fonterra, sells for between about $3 and $3.50 for two litres. Demand for previously scarce A2 milk has rocketed since the September release of a book on the issue by Lincoln University academic, Professor Keith Woodford . more>>

AgResearch tests waters on gene study
The public will get a say on AgResearch's plans to expand its Hamilton-based genetically engineered cow research across the country, in a move it describes as "testing the waters" on GE. The research institute has had a herd of transgenic cows at its Ruakura campus for about eight years. The cows contain a human gene that allows them to produce milk with a human protein that could be extracted for use in pharmaceuticals. GM of applied biotechnologies Dr Jimmie Suttie said scientists wanted permission to use genetic material from other species, including synthetic human genes, in cattle, sheep and goats at other sites across the country. The research would mainly be aimed at finding helpful characteristics such as medically important proteins in milk, but would also include disease resistance and altered meat or wool. He described the application as "no great leap" from what AgResearch was already doing, but said the organisation would "test the waters" on genetic engineering with the application. more>>

Search on for tasty and tender NZ lamb
The search for the most tender and tasty lamb in the country has started with entries now open in the 2008 NZ Golden Lamb Awards. The "Glammies" have gone nationwide after a successful pilot programme was held in the South Island earlier this year. In the 2008 challenge, run by the NZ Beef and Lamb Marketing Bureau on behalf of M&WNZ, sheep farmers would vie for the title of grand champion as the producer of the most tender and tasty lamb in the country. The current titleholder is Timaru farmer Peter Irvine. NZ Beef and Lamb Marketing Bureau chief executive Rod Slater said a greater challenge could be expected with the inclusion of North Island farmers. "Not only will this competition confirm what a great product our farmers produce; it will highlight which breeds and regions produce the most succulent meat," Mr Slater said. more>>

New technology lifting production
Mount Linton Station is capturing the rewards for higher meat yield using Alliance's viascan technology.Helping drive these production gains is the station's new sheep genetics manager Hamish Bielski. Mr Bielski manages 1000 texel and 500 suftex recorded ewes and their progeny within the station's 300ha sheep genetics unit adjacent to the Western Southland property.The main role of the sheep genetics unit is to produce top-quality rams to meet the needs of the station's commercial flock and its large client base. The farm provides the texel and suffolk-texel (suftex) ram lambs that were used over the station's romney base flock. The suftex has the growth and length of the suffolk and the meat yield and hardiness of the texel.Mr Bielski said the station, comprising two properties and 100,000 stock units, was gradually phasing out its romney ewes and replacing them with low-input perendale-texels that were to be bred on the genetics unit. more>>

Sheep and beef farmers slip further behind
The growing economic gulf between the dairy sector and sheep and beef has been highlighted in a report which also warns that fortunes for the sheep and beef sectors were unlikely to change in the near future. The MAF’s pastoral monitoring report said the average economic return for sheep and beef farms in the 2007-08 year would be 0.4% compared to 6.5% for dairying. It predicts 200 sheep and beef farms covering 70,000ha will convert to dairying in the next two years, mainly in Southland and Canterbury, resulting in the replacement of 900,000 sheep and beef stock units with 180,000 dairy cows. An economic analysis highlights the interest in dairying. In 2006-07, the economic farm surplus per hectare of a Southland dairy farm was almost 20 times that for sheep and beef and nearly 10 times that for deer. The cost of converting a farm would temper any shift, the report said, with the conversion of a 180ha sheep and beef farm in Southland costing $3 million-$4 million. more>>

Finishing system puts beef farmers in top 20%
Use of the Techno system to finish bull beef on summer-dry Nth Canterbury hill country has put Richard and Jane Maxwell in the top 20% of hill country farmers in Canterbury and Marlborough.
The Maxwells’ 670ha Mt Catherine property inland from Cheviot was on show at a recent M&WNZ Beef Focus Farm field day. While Canterbury hill country is usually the realm of breeding cattle, the Maxwells’ system shows that good returns are possible from intensive finishing once the development work is done. The Techno System is a way of close subdivision using electric fences. The Maxwells have divided 134ha of the hill country into 27 narrow lanes each of about one kilometre length and 5ha in area. The lanes are divided into about 60 distinct cells for intensive grazing, each with access to stock water via a water line and micro troughs.The aim to intensively rearing bulls on this country is to maintain them through winter, and then pack on the growth during the period of rapid grass growth in spring. more>>

Pasture pest control breakthrough
Canterbury-based plant breeding company Cropmark Seeds believes it has made a major research breakthrough which will help control some of NZ's worst pasture pests, including grass grub. The grub is estimated to cost the NZ economy $100m a year in lost production and control costs. Cropmark plant breeder Nick Cameron has been working for about 10 years on strains of the Neotyphodium uncinatum endophyte. The U2 strain of this endophyte, in particular, when bred into ryegrass-like material offers greatly improved insect resistance. Grass endophyte is a microscopic fungus that lives symbiotically within the plant, threading its way between cell walls. Naturally-occurring feral ryegrass endophyte has both good and bad effects on pasture. It gives a degree of insect resistance, particularly to Argentine stem weevil, but it also created toxins that can cause ryegrass staggers in livestock. The challenge for scientists has been to find endophytes for pastures which enhance the positive insect repelling characteristics, but have no toxicity to grazing animals. This has been a priority area for pasture research for more than a decade. more>>

Farmer control non-negotiable
The Chairman of Fonterra Co-operative, Henry van der Heyden, says farmer shareholders will never lose control of the Co-operative unless, at some point in the future, a 75% majority vote of shareholding farmers decides to relax the control mechanisms that are being proposed. But you don’t get 75% of farmer shareholders agreeing to a change unless there are good reasons.” The Fonterra Board put out its preferred option on a new capital structure for consultation with shareholders last month. Mr van der Heyden is urging shareholders to attend a round of farmer meetings this week to “clear the air” around control concerns. Fonterra is holding more than 100 meetings around the country this week as part of a consultation process with farmer shareholders. Mr van der Heyden said the preferred option ensured control would remain in farmers’ hands and included built-in protections to achieve that outcome. more>>

Sweet on the environment
NZ farmers are picking up on the environmental advantages of high-sugar grass, says William Gilbert, head of a nine-generation family seed business in Britain. Gilbert is managing director of British Seed Houses (BSH). He said the farmers had been quicker than NZ scientists to catch on to the potential of high-sugar ryegrass to deliver environmental and production benefits. He said British scientists had authenticated its ability to channel nitrogen into milk and meat production, yet NZ researchers were still debating its science. "We were looking at the increased nitrogen utilisation for meat and milk, and then it became obvious that it logically leads to a reduction of excrement of nitrogen. We were banging this drum five years ago, and now it is more of a hot topic." The Institute of Grassland and Environmental Research (Iger) in Wales maintains that the high-sugar grass it has bred reduces nitrogen excretion in animal faeces and urine and increases nitrogen uptake, for at least 6% more milk a cow over a season, and up to 20% higher liveweight gains. more>>

Lamb plant gets $1m upgrade
The country's biggest meat processor PPCS says it will spend more than $1 million next year upgrading its Waitane lamb processing plant near Gore to boost chilled lamb exports. PPCS chief executive Keith Cooper said it was part of a strategy to align plant capacity to national sheep livestock numbers forecast to fall dramatically. The investment comes in the midst of tough times for sheep farmers with the NZ dollar squeezing export margins and meat company profits. Keith Cooper said lamb numbers were forecast to fall by 3 million in Southland alone in the next three years because of a big shift to dairying. Smaller more modern facilities were likely to be the way of the future. They were more flexible and had less overheads and did not rely on high throughput to be efficient. Cooper said there was no plan to reduce lamb processing at other plants. Rival meat processor Alliance based in Invercargill has said PPCS needed to rationalise its processing plants. more>>

National bank rural report
This issue of ‘Rural Report’ follows up on the September article about capital structures for Fonterra and has our usual December review of the economic outlook and product prices. The capital structure proposed for Fonterra goes a long way to satisfying two of the issues identified by directors of providing a farmer investment choice and access to capital for growth. It is silent on many important issues for the new Fonterra Co-operative (FC) where 80 percent of farmer shareholder investment will (initially) sit. A potential redemption risk still appears to exist for FC (the third issue). The milk price mechanism will be critical. Our dairy forecast for 2007/08 is revised up by $1.90/kg milk solids (kg ms) from $4.85 in May to $6.75 but most other forecast product prices are unchanged. more>>

What if a drought develops in 2008
One of the key lessons learnt from farmers experience in previous drought situations has been making decisions early and setting dates to implement these decisions. Making timely decisions has been a key factor in minimising impact and in speeding recovery following drought, which in turn. This in turn has a huge impact on farm income. While it is too early to determine what will develop in 2008, farmers should be assessing their own feed availability and stocking situation and planning appropriately. There is a lot of useful information available for farmers and their advisers, based on the experience of those who have suffered from very dry conditions in recent times. The 'Guide To Getting Through The Drought' - produced in June 2007 by the Hawke's Bay Regional Drought Committee is easy to read and contains much good advice: more>>

Improve feed planning for sheep & cattle
Run by AgResearch and funded by M&WNZ and Pastoral 21, the FeedSmart workshops will explain pasture measurement techniques, new calibrations for measurement devices for sheep and beef pastures, new feed requirement tables and basic principles of feed planning. “2008 will be the year to start integrating new feed planning techniques and technologies into sheep and beef farming businesses,” says AgResearch Scientist, Dr Annette Litherland. “Every sheep and beef farmer knows how to look at their pasture, judge their own stock, and plan future feed supplies based on past experiences. “However, when faced with change outside the scope of previous experience, for example a new farm in a different area, a completely different class of stock or wanting to be prepared for unexpected extreme weather events, it is advantageous to have the ability to more formally manage feed demand and supply,” says Dr Litherland. While dairy farmers have simplified their systems by using more supplementary feed to fill gaps, sheep and beef farmers are becoming more complex and diversifying revenue streams in the face of lower returns on feed consumed. more>>

Sometimes, they just won't
Farming deer takes patience, and heaps of it. They're nervy and flighty creatures, and jobs take about twice as long as you'd expect and, sometimes, if the animal's not in the mood, you can forget it for today, says farmer Mike Holdaway. He and Jan Holdaway have 247 ha of hill country farmland, which backs on to the foothills of the Ruahine Ranges at the top of the Pohangina Valley. They have about 60% deer, and 20% each in sheep and cattle. It's about not having all their eggs in one basket when it comes to farm returns. It also works in well with the pattern of pasture growth at Umutoi."The ewes lamb first in September and a couple of weeks later we usually get the pasture growth. Then it comes away in time for fawning, which is late November and early December," Mr Holdaway says .Farming deer is not on the agenda for many farmers. There is the cost of fencing and the specialist shed. Patience is the essence and he has the easy temperament deer need. "You need to be quiet around them.. People say if you're excitable, stick to kiwifruit!" more>>

Genetics behind velvet growth
A huge advance in deer genetics for velveting stags has driven the industry forward, Colyton deer farmer Craig Hocken believes. Mr Hocken won the "sire of three" with velvet he entered in the N I velvet championship in Hawke's Bay at the weekend, and came second in the four-year-old red deer section. The central region velvet competition is for deer farmers who put in their best velvet to be judged and the winner goes first to the North Island finals in Napier and then to the national event in Southland. It was the genetics which made the difference, Mr Hocken said. The mild winter and a few universal nuts had also helped his stags. "The industry has come ahead in leaps and bounds over the past 10 years. We used to think cutting 3 kilograms of velvet was really good. Now people are culling deer that only produce at that level," he said. The judges score velvet on weight, the quality and overall look, then take points off for any damage and gauge how symmetrical it is. more>>

Farmers need reality not hype: adviser
Times are tough for sheep and beef farmers and they will have to try to get through the next couple of years with their farms intact, said Wilson and Keeling farm adviser John Stantiall. While the medium- to long- term future might look bright for animal protein, it is the short term which is posing cash-flow problems, he said. Institutions such as banks have concentrated on the longer-term scenario and talked about a very positive future for all types of NZ farms. "I think the hype about the future is starting to wear off now. Product prices last year were below expectation and this year is looking even worse. And if we end up with a dry summer? It's going to be worse again. We're getting a bit sick of the hype and we want some reality in there." People can't live on high expectations for the future, they need good lamb and beef prices now, he said. more>>

Sheep farmers face desperate times
The sheep-meat industry is in desperate need of higher prices to return farms to a financially viable position and ensure that NZ has a sheep-meat industry in the future, said chair of Fed Farmers Meat and Fibre Producers’ Council, Keith Kelly. “Farmers need $100 for high quality prime lambs, with proportionately increased prices for store lambs, in order for sheep farmers to survive. Currently, the depressed store market is reporting returns from some areas of only $20 to $25 per lamb. It is impossible to run a sheep farming business at these levels of return, Mr Kelly said. “There is every confidence that the long term future of the industry is good but, after several years of unsustainable returns, higher farm gate prices are needed now to ensure farmers can remain in the industry. “Sheep farmers recognise that they need to examine their practices and to develop better long-term relationships with their processors of choice and their customers. “Farmers equally need their supply chain partners – processors, exporters and marketers – to step up and ensure that premium lamb products achieve premium prices in world markets. “The sheep-meat sector is a major contributor to NZ’s export earnings and without it all NZers would be worse off. more>>

Most productive dairy region
South Canterbury is the most productive dairy region in the country, according to national figures released yesterday.The NZ Dairy Statistics 2006/7 report, compiled by LIC, showed the region's cows produced an average of 1232kg of milksolids per hectare compared to a national average of 934kg. Sth Canterbury also had the highest average stock density at 3.27 cows per hectare and highest herd size at 692 cows, compared to national averages of 2.81 and 337 respectively. That gave the region the highest per herd output at 251,661kg of milksolids however, with only 171 of the nation's 11,630 herds, the region's gross milksolid production of 43 million kg was just 3.3% of a record 1.32 billion kg produced nationally.The South Auckland region, which includes Waikato, has by far the highest number of cows at just over one million. more>>

Best velvet, hard antler go on national stage
The best velvet and trophy antler genetics will be on display at the 26th national velvet and hard antler competition in Invercargill next week. Convener Peter Allan said the event was a great opportunity for producers to highlight their herd genetics on the national stage. "It's all about showcasing the best velvet and hard antler in NZ," he said. "It's no different, really, to an agricultural show where the best sheep and cattle genetics are on display." Last year Tommy May, of Winton, won the overall competition with a 21kg elk head.Mr Allan said he expected the standard of entries would be high this year, but the cold spring might have affected velvet production. "Velvet is a bit like fruit, it needs plenty of sunshine and heat." There were 12 classes in this year's competition for red, elk-wapiti and fallow deer farmers. Weight for age, velvet production had almost doubled in the past 10 years from 6.5kg to 12kg, as breeders took advantage of the best genetics on offer, Mr Allan said. more>>

Better use of fertilisers urged to reduce costs
High fertiliser prices show no signs of abating, an agribusiness bank says. Rabobank is advising farmers to look for ways to use fertiliser more efficiently to reduce costs.The bank says world fertiliser prices have soared this year, driven by a dramatic upturn in demand in both developing and developed nations. This has been compounded by a limited supply of key fertiliser ingredients - nitrogen, phosphorus and potassium. Rabobank senior analyst Ingrid Richardson said the increased demand was due to a combination of factors, including a demand for greater crop yields as population and economic prosperity grows, high agricultural commodity prices and the emergence of the biofuels industry. "There tends to be a close relationship between high fertiliser prices and high commodity prices as a farmer's demand for inputs is driven by desire to increase yields in a high-commodity environment," Ms Richardson said. more>>

PPCS: No more "special deals"
If anyone has evidence of a 'special deal' involving PPCS this season, I want to hear about it," that's the message from Chief Executive Officer Keith Cooper. Mr Cooper has said his company will not be supporting third-party traders and "special deals" this season. "We're attempting to minimise costs which all farmers share, by not dealing with the dealers. We've said no more deals. We've done that... it's cost us in stock through the winter but we've got rid of the inequality. "The days of paying some farmers more on the back of one-off deals are over. Indirectly we are reducing costs by taking out the middlemen and moving towards having all farmers on the same basis." Mr Cooper said farmers need to work out what adds value... "if no-one dealt with the dealers, if farmers stand up and commit their lambs then there is no void for dealers to fill." "We've stood up and tried to show some leadership and we've said that we are disappointed that some other farmer owned companies are not showing the same level of leadership." more>>

Affco latest meat company to take profit hit
NI meat company Affco has joined its main rivals in revealing that it has taken a big hit from tough lamb trading conditions this year.Its net profit is just $1.2 mill, down almost $12 m on the previous year. All companies blame the difficulty of trading in a highly competitive British lamb market this year. A year of volatile currency exchange rates had also had an impact. However, Affco chairman Sam Lewis was philosophical about the bad year. "You've got to take the rough with the smooth. While the good years seem to be further apart than you'd like them to be, they will come again," he said. The Waikato company, which is now majority-owned by fishing company Talleys after a partial takeover offer last year, had spent four years restructuring and was now "pretty tidy", Mr Lewis said. Affco also chose to make a significant investment in the dairy industry during the year. It set up Dairy Trust to use land near its meat plants to build four dairy factories and it took a controlling shareholding in Open Country Cheese. more>>

AgResearch to look at sheep meat footprint
AgResearch today announced it had, in collaboration with industry partners, won a MAF tender to develop a model, based on Life Cycle Assessment methodology, to estimate the total greenhouse gases (GHG) or carbon footprint of NZ produced sheep meat consumed in the United Kingdom. AgResearch’s General Manager for Agriculture and Environment Peter Benfell said “As global consumers become more aware of the environmental footprint created by pastorally based foods, it is essential that we develop the capability to provide them accurate information. “NZ sheep and lamb have enjoyed an enviable global reputation for quality. Now is the right time to demonstrate their relative sustainability using a robust methodology and cutting-edge science,” he said.Key industry groups including meat processing companies, Ballance Agri-Nutrients, Landcorp, and M&WNZ would also contribute to the project in aspects of model design, data provision, system analysis of the model and technology transfer. more>>

Dairy grazing value queried
A Nth Canterbury sheep and beef farmer, who grazes dairy cows in the winter, wants to see more transparency in how dairy grazing is priced. Dairy grazing is becoming an increasingly important source of income on many non-dairy farms as the dairy expansion continues. However, there is no set formula for establishing fair value, and long-term deals usually depend on developing long-term relationships and goodwill between the parties. Sarah Rodie, who runs stud and commercial sheep and cattle, and deer near Amberley, said she has been grazing dairy cattle in the winter on and off for a long time, but would like to see more openness about the system of payment. Consultant with the Agribusiness Group Geoff Dunham, based in Rangiora, said there were two ways of pricing.The better way was to physically measure the amount of feed on the land at the beginning of the deal. “That way the starting point is fixed. Then it’s up to the cow owner to say how he or she wants the feed allocated to the cow. The grazier then knows, and there is no argument. more>>

Trailblazers challenge meat industry mindset
Traditional thinking in our meat industry is being challenged by two of this year’s Kellogg Rural Leadership participants. Southland farmer Jason Miller and Sth Canterbury farmer Neil Campbell have thrown the spotlight on present cooperative marketing practices and quota management. They, presented their projects to a Lincoln University panel of the country’s leading marketing and commerce academics. Their projects are well timed as, many industry leaders are starting to focus on the on-going poor returns to sheep farmers. Mr Miller, a candidate in the current Alliance Directors elections, has spent the past eight months researching the meat coop marketing models - and then, investigating future initiatives to maximise returns, and put forward an outline of what could be achieved in marketing if the current thinking were to change. Neil Campbell, whose project was focused on quota management, said farmers have formed the view that the number of company players is having a detrimental effect on quota rationing.” The project investigated the areas highlighted as being of concern i.e.; the 2% quota held for new entrants, local consumption impact on quota eligibility and the time frame used to average out current quota allocation. Mr Campbell said undoubtedly he would like to see these issues managed better, but the real issue is actually the 85% of quota held by six of the larger export companies and the behaviour of these six. ‘This is much more crucial.” more>>

Fonterra : The all-important milk price
Having a well understood, transparent milk-pricing mechanism will be a critical element in gaining farmer and investor confidence for the proposed listing of Fonterra. Farmers at the meetings launching Fonterra’s preferred capital structure option were adamant about its importance, voicing their concerns over the tensions they could see developing between the interests of investors in the company and the interests of farmer suppliers of milk. Canterbury dairy farmer Leonie Guiney articulated the mood when she said she was hugely supportive of Fonterra and open to hearing more about the proposal but that she had a fear it could create a situation where there were two organisations with conflicting goals. One where investors wanted to maximise their return by paying a low price for milk and the other, the farmer owned co-operative supplying the milk which watned to maximise that price. more>>

Clean up the farms quick - minister
Farm practices have to improve quickly if NZ is to maintain its clean, green image, Environment Minister Trevor Mallard says. He released two reports yesterday which show that while 60% of the country's lakes have good water quality, about 30% are likely to be in a poor state. Mr Mallard said there was a lot of farming land in the problem areas. "This must be addressed if we want to be a sustainable nation and continue to leverage off NZ's clean, green reputation in international markets," he said. "We all have to make an effort to keep NZ's water clean. One of the biggest challenges is for the agriculture sector to improve farm practices, and to do this quickly." Agriculture takes up almost 40% of NZ's total land area, and has the most widespread impact on water quality because it is the most dominant land use. "Intensified farming is affecting the recreational value and life-supporting capacity of our water bodies," Mr Mallard said. "We have been encouraged that many in the dairy industry are acting to improve their practices. "Now we need to see the whole agriculture sector take greater responsibility for its environmental impacts."
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Website moving in on saleyard activities
A TradeMe for cows-style website has arrived, and its creators say it could help steady overheated livestock prices. Allied Livestock launched its on-line dairy herd listing website www.MyLiveStock.co.nz last week. Waikato livestock manager Bill Sweeney said he expected the ability for buyers to browse herds across the country rather than only regionally would help establish a standard price for dairy cows."The vendor will get a more accurate picture on the value of their stock as they know they are getting maximum coverage and maximum value. Our experience shows a number of people are happy to buy stock sight unseen, as long as they have access to all the relevant herd information and a trusted livestock agent." Cow prices have increased rapidly this season as farmers scramble to increase stock to take advantage of a bumper milksolids payout. Mr Sweeney said good cows were averaging around $2300 a head in the Waikato but had tipped $2700 a head earlier this year. more>>

Draft dairy cattle welfare code raises issues
The NAWAC had a close-up look at a Manawatu dairy farm last week, as the committee works to finalise the welfare code for dairying. It includes a minimum requirement for docking cow tails, feeding and cow condition score, transportation and management of dairy cattle. The code outlines minimum standards of welfare and recommends best practices for anyone responsible for cows and calves. Dairy farmers Jeff and Janice Williams introduced their farm system and cows to the group. But the draft dairy welfare document did raise some issues for Mr Williams, he told NAWAC vice chairman Selwyn Dobbinson. "Docking cows tails and only taking off two vertebra and the switch [as in the draft code] means the tails will be at eye level in the milking shed. It will mean someone will lose an eye - or farmers will have to wear safety goggles and no one wants to have to do that," says Mr Williams. Condition score is another area of concern, Mr Williams says. "A cow with a condition score of three or lower needs veterinary attention immediately, says the code, but there would be lots of herds that have most of their cows at that [score]." more>>

Shearer smashes woman's world record
Waikaretu shearer Emily Welch has smashed the world record for shearing lambs beating the existing nine-hour figure for women of 541 lambs by more than one hundred. The 27 year old shore 648 lambs. She went to lunch at Whitford's woolshed, at Waikaretu south of Auckland, with 394 lambs under her belt and broke the existing record shortly about 3.30pm, shearing at a rate of about 70 lambs each hour. The record attempt began at 5am, and judges from the NZ shearing committee monitored quality and recorded the count. The record was formerly held by another NZer, Jills Angus Burney, who set the mark in 1989, in Bennydale. Welch trained for the high endurance record attempt for six months, after shearing professionally for six years. more>>

Meeting 'last resort' for NZ's sheep industry
Southland farmers will make a stand for a more transparent livestock procurement policy and an end to secret deals in resolutions to be presented at the Alliance Group's AGM next month. MIAG chair Keith Milne said the meeting was the "last resort" for farmers disillusioned with poor lamb prices. "We've had intense discussions with Alliance over the past seven months, but very little progress has been made," he said. Mr Milne and fellow MIAG member David Rose will present two resolutions at the meeting and they urged shareholders to get involved in the voting process. In the first resolution Alliance will be asked to adopt a totally transparent and consistent livestock procurement policy before the 2008-09 season and that all suppliers be treated honestly and equally with no special or secret deals. In the second resolution Alliance will be asked to consult with its shareholders when developing its strategic plan.Mr Milne likened the industry to a train wreck that had just hit a concrete wall and the carriages were about to pile up. "If we don't make some bold changes soon the consequences will be extremely serious. "In four or five years, half of our sheep industry could be gone," he said. more>>

NZ Dairies rejects share transfers
A fracture in NZ Dairies Ltd's ownership opened further yesterday after the company refused to accept proposed share transfers by a former director. The disharmony between present and former directors appears to have deepened further as both sides await a decision from the Overseas Investment Office over the company's ownership and the future of the $100m Studholme dairy plant. Hapuka Trustees Ltd, which is owned by Greg Misson, had submitted the transfers with respect to part of its shareholding. NZDL chairman Peter Lavery said the board has advised those people involved it cannot accept their share transfers at this stage of the company's development. Mr Misson however is claiming that the transfers were valid and the reasons for refusal "illegitimate, contrived and weak." Mr Misson's claims are supported by NZDL's founding chairman Kelly Diprose and former board member and milk supplier Aad Van Leeuwen. more>>

Full reparation sought from govt for breaches
Full reparation sought from the government for their ‘blatant and significant breaches’ in a long-running land dispute case. A court decision has ruled in favour of Canterbury high country farmers Mark and Karen Feary who took on the government in their long-running land dispute. The whole of their 1780ha Mt Oxford land block which has been in their family for 70 years is apparently now under Department of Conservation (DoC) control.The district court decision on Friday dismissed most of the government’s costs application citing that its argument were outweighed by ``the blatant and significant breaches’’ of the timeframe, set out in the December 2005 agreements.’’ ``Naturally we are absolutely stoked that the courts have confirmed that agreement but it goes further and not only finds the government committed a total of five breaches but that each of those five breaches were both blatant and significant,’’ Feary said. more>>

Technograzing In Chile
Hamish Firth, the managing director of Chile Farm Investments heads back to Osorno, Chile today and will give serious consideration to implementing Kiwitech’s TechnoGrazing – a NZ designed pastoral grazing and farm management system.“TechnoGrazing offers an opportunity to manage the pasture to improve productivity and returns – a simple yet effective innovation from Kiwitech that many of NZ’s dairy and beef farmers are adopting making NZ the leaders in low-cost diary and beef production.” Mr Firth goes on to add that Chile has some advantages over NZ in terms of lower land and labour costs. “Coupled with good pasture management dairy production will increase in Chile offering potential returns on dairy farms not seen in NZ for 30 years”. Mr Firth’s Chile Farm Investments aims to purchase 20 farms in the Osorno region over the next three years either progressively converting them to dairy use or leaving them as dry stock farms increasing production by implementing NZ farm management systems. more>>

Number of rabbits on up and up
FARMERS need to be vigilant in keeping up secondary control of rabbits or numbers could ‘‘spiral out of control’’, ORC chief executive Graeme Martin says. The warning came as the council’s compliance committee considered two reports one on Otago’s rabbit population and the other on RHD serum results for 2007. In a report to the committee this week, compliance officer Don Robson said the latest rabbit survey had shown an increase in the amount of land in Central Otago with rabbits exceeding their maximum allowable levels, a trend seen over the past four years. Just over 10,600ha were found to be exceeding maximum allowable levels. All were in Central Otago, apart from 300ha in East Otago and 40ha in North Otago.‘‘It reflects the general consensus that rabbit numbers are on the increase and are currently at their highest levels since the rabbit virus RHD arrived in spring of 1997.’’ more>>

Not all gloom on lamb front
Lamb producers should take heart. Several major drivers for price are aligning to underpin returns at the farmgate this season. M&WNZ chair Mike Petersen told farmers at a Southern North Island Sheep Council seminar in Wairarapa last week there were at least six, and perhaps seven, "favourable fundamentals" lining up for lamb. Petersen acknowledged that farmers needed better prices for lamb than they had received for the past two years. He stopped short of predicting what price farmers might expect to average during the peak kill period (January to March) this season, but supported a view from another speaker at the same seminar who predicted $3.60/kg carcase weight was achievable. Growth of the world economy for 2008 was still expected to be more than 1% ahead of the 20-year average, but developing countries were tipped to grow at double the same average.At the same time, major reform of the CAP in the EU, drought in Australia and parts of the United States, disease challenges like foot & mouth, bird flu, bluetongue and e.coli scares, plus substantial dairy conversion and drought within NZ would all limit supplies of protein on world markets. more>>

First drench to control parasites in goats
The first ever drench for goats and a groundbreaking new parasite control publication were launched in Toowoomba last week.
More than 130 goat producers travelled from NSW and Queensland to participate in the "Going into Goats" event run by Meat and Livestock Australia which focussed on keeping parasites out of goat production. MLA goat industry consultant, Peter Schuster, said the goat meat industry has grown in export value from $18 million in 1997 to $91 million in 2006. He said having access to new information through the MLA Going into Goats guide and an effective drenching option through Caprimec is expected to help boost the value of the industry even further as producers take the next step to lift productivity. more>>

M&WNZ survey confirms fewer lambs
The 2007 Lamb Crop figures have confirmed the predictions of industry commentators – lamb production was well down with 1.7 million less tailed lambs compared to last spring. The 32.4 million lambs is an overall decrease of -4.9%, according to the annual M&WNZ Region Manager survey. Based on the number of lambs tailed, the export availability for 2007-08 is estimated to be down 1.44 million (-5.6%) on last year to 24.44 million. This includes the need for fewer lambs to be kept for replacements due to the expansion of the dairy herd onto sheep and beef farmland, M&WNZ Economic Services Executive Director, Rob Davison said. The decrease in lambs this spring in the North Island occurred as a direct result of the severe East Coast drought from autumn into winter, he said. “The ewes were in light condition in this region and so conception rates were down, and this was compounded by the de-stocking of farms as feed supplies dried up.” more>>

Farmers sign with alternative
Alternative milk processor Dairy Trust says it is benefitting from growing farmer concern about Fonterra’s capital restructuring plans. The company claims to have signed up supply from a quarter of the cows it needs to fill its new Invercargill factory. Chief executive Mark Fankhauser said yesterday the company needed milk from 40,000 cows to fill its new Awarua milk powder plant when its starts production next August, and in the past week it had contracted supply from about 10,000 cows.He said farmers had delayed committing until Fonterra had made its capital restructuring announcement, and some had felt it was not what they expected.‘‘The main one thing farmers have said is ‘there is no pot of gold in it for us, three years is a long time, we’re coming’.’’ Dairy Trust, 44% owned by publicly listed meat company Affco, 22% by Talleys Group and 19% by Dairy Investments with the balance private investors, will have plants at Awarua near Invercargill and at Open Country in the

Prickly job for weed eaters
IT IS an evil-looking little critter and its armour-plated back resembles something dating back to the dinosaur age. But looks do not matter to South Otago farmers Glenn Mead and Kate Hook, provided the green thistle beetle devours Californian thistles as it has shown it can do in its native Europe and the US, where it has also appeared. Landcare Research scientist Hugh Gourlay released 60 beetles yesterday on Mr Mead’s Waitahuna farm, signalling a major milestone in a 10-year push by a group of South Otago farmers to find a biological control for the weed which smothers large areas of pasture between October and April. Mr Gourlay estimated Californian thistles cost Otago and Southland farmers $30 million a year in chemicals, mechanical topping and lost production. Nationally, that figure was closer to $200 mil. But widespread results would not be immediate. Conservatively, I’d say we may start to see some impact on thistle plants in 20 years, but it might be 50 years,’’ Mr Gourlay said. more>>

Chemical 'can halve growth in gas emissions'
The agriculture sector already has technology to nearly halve its growth in greenhouse gas emissions, says an environmental think-tank.Sustainability Council executive director Simon Terry said yesterday a technical report commissioned by MAF shows that a chemical already available from fertiliser companies could slash emissions of nitrous oxide from dairy farms. Instead of taxpayers paying $1.3 billion to buy overseas carbon credits to account for NZ's excess emissions over the next five years, the cost could be reduced by about $400 million if the nitrification inhibiter was used, Mr Terry said. The chemical, known as DCD, can significantly slow the release of nitrous oxide to the atmosphere from cattle urine, and at the same time boost the amount of nitrogen available to pastures as fertiliser. The chairman of Fonterra's sustainability council, Barry Harris, said trials of nitrification inhibitors had shown around 30-70% reductions in nitrous oxide production and also accompanying pasture productivity increases of up to 15%. more>>

Sexual revolution in the dairy industry
In all the hoop-la over Fonterra's plan to bring in outside investment an announcement that could have as big an impact, if not more so, on the future of dairying has been barely noticed.It is a statement from farmer-owned dairy genetics company LIC that it will try the new technique of sexing semen. This allows farmers to choose to produce either female or male calves. Obviously, in an industry that runs on milk, more females are desired. The process that LIC wants to try is called flow cytometry. It uses lasers to determine the mass of dna in each cell and then uses electro-magnetic charges to physically separate the X and Y sperm. The biggest drawback identified in overseas trials so far is that a straw of sexed semen has fewer useful cells, which halves the conception rate. But LIC has developed technology that keeps semen fresh longer and Mr Gatley feels sure this will improve conception. more>>

Beef sector awaits price rebound
Beef export volumes have been hit by the surging dairy sector as cull cows are kept for milking, but M&WNZ chairman Mike Petersen is confident meat producers will have their time in the sun. Petersen said the pastoral sector expects to see higher prices for all commodities. “Everyone is negative at the moment about sheep and beef, and we know it has been a couple of tough years, but it goes in cycles and we’re certainly seeing evidence of better pricing now.” No doubt dairy is having a sustained run of good prices – definitely for this year, and likely to continue for the next two, which will continue to apply pressure on sheep and beef. But the outlook is actually much better for red meat producers: one good news story is from Asia where the meat companies alongside MWNZ have been educating consumers about grassfed beef. NZ has been able to hold onto gains made when US beef was out of the market with the BSE ban. Petersen says this is a big positive, giving consumers their first taste of grassfed product. more>>

Irish eyes on NZ dairy farms
NZ's dairy boom – with the average Fonterra farmer earning more than $700,000 this year – is attracting the interest of Irish farmers.
"We've been pleasantly surprised by the level of interest," said Canterbury real estate agent Shane O'Brien who has just returned from Ireland. A recent seminar in Antrim attracted 50 farmers. "These are all people who are interested in potentially buying rural land here and immigrating." Mr O'Brien said NZ had a very similar style of farming to Ireland and its land was relatively affordable. Northern Ireland real estate agent Stephen Allen said "People seem to have a genuine interest. . .there's a better system in NZ; the government is too involved in the farms here and everybody is fed up," said Mr Allen. "They're looking for a better way of life.” more>>

RMA ‘six pack’ fix released
“’Let’s Make It Work: Why The Resource Management Act Must Change’ is a vital resource for those in local and central government who are serious about finding ways to fix a seriously-flawed Act,” said Bruce McNab, the Fed’s environment spokesman. Fed Farmers launched the booklet at its National Council meeting in Wellington .“The booklet will encourage more debate on the six major problems with the RMA in the context of farming. The 20-page booklet will be sent to all MPs, mayors, key government officials, and the media, along with a pair of ‘RMA socks’. “We compare the 16-year-old RMA to an old pair of socks: worn out and threadbare, with a few patches here and there. We are sending MPs and others a new pair of RMA work socks - to get the RMA working again.The six pack comprises: Compensate landowners when protecting nationally important values. Mandate consultation with affected landowners. Refine DoC’s advocacy role. Streamline resource consents and the plan process. Enable long-term economic viability. Acknowledge the changing nature of landscapes. more>>

Eastern drought will cost $700m
The drought on the N Island east coast will cost the region $700 million and could lead to big changes in land use. Sheep and beef farmers from East Cape to Wairarapa are taking a direct hit of $300 million, and still waiting for their grass to recover. The figures come from an Agriculture Ministry report that went to Minister Jim Anderton yesterday. MAF Hawke's Bay regional team leader Gillian Mangin said the farmers' income would drop by $160 million over three years. As incomes had been predicted to grow by $140 million, given normal weather, in effect the loss was $300 million. The multiplier effect, considering such factors as loss of income in the processing industries, would take the total hit for the region to about $700 million. Mrs Mangin expected most farmers to pull through, however. "They are pretty resilient and most have high levels of equity," she said. The North Island east coast region holds about a quarter of all of NZ's sheep and beef stock. more>>

Spend on animal health lifts markedly
Te Awamutu vet Neil MacPherson of Te Awamutu and Northland vet Don Thomas of Dargaville are at the sharp end of farm expenditure over spring time. Both vets report farmers paying even greater attention to herd health post-calving this year. A recent industry trend for wholesale herd inspections for metritis (uterine infections) has seen a lift in "metri-checking". The simple scoop device provides vets and farmers with an easy way to determine if a cow is infected ensuring antibiotic treatment is delivered before mating starts. He also believes farmers are more proactive in seeking health management plans for herds. With mating kicking off, he also expects to see greater treatment of non-cycling cows earlier in mating programmes, given the value of heifer calves. Don Thomas says more farmers are showing interest in green feed and maize silage for supplement, particularly given the jump in recent weeks of palm kernel prices to $400/t. Waikato maize contractors Gavin Grains are witnessing an unprecedented demand for maize silage planting."The industry needs to be stable and take a long-term view about growing the overall demand for maize silage by keeping prices realistic. Prices are holding steady at 25c/kg DM, but Kevin Taylor has heard of prices as high as 28c/kg DM, a point he believes is too high. more>>

Invermay open day shows world-leading research
AgResearch is opening the doors of its Invermay Campus, at Mosgiel, to the public this Friday, 23rd November from 9am to 4pm. A mainstay of NZ’s pastoral research capability, Invermay is at the forefront of R&D in animal genomics, deer research and environmentally sustainable pastoral agriculture. This year the programme has been designed around activities relating to the five Big Ideas, as outlined in AgResearch’s 2020 Science Strategy – particularly in relation to deer, sheep and the environment. “Of particular interest is the prolificacy gene discovery work we have been carrying out in sheep. These genes increase ovulation rate, which results in increased scanning percentages and litter size at birth. “Our velvet antler research is also of significant interest for human medicine. Deer antler offers a unique opportunity to explore how nature achieves mammalian organ regeneration. Our studies will provide insights that may potentially contribute to human regenerative medicine. Other research will include: a new irrigation calculator for dairy farmers, DNA testing, how bioinformatics can reveal why some animals have different levels of production or disease resistance, lamb survival, and controlling Johne’s disease in deer. more>>

Pair plan South Island A2 milk sales
A Canterbury supply of A2 milk may be only months away as demand soars, prompted by health concerns about A1 milk. The A2 Corporation is talking with the owners of what is believed to be NZ's largest herd of A2 cows about providing a local supply of the milk, which does not contain the protein in A1 milk that some link to illnesses such as type 1 diabetes, heart disease, autism and Crohn's disease. At present, the herd's owners, Pauline and Chris Prattley, of Killinchy, l, supply their A2 milk to Fonterra, which blends it into the country's dominant A1 milk type. A2 has been in demand since the publication in September of Lincoln University academic Prof Keith Woodford's book reviewing the science behind A1 and A2 milk. A2 Corporation chief executive Anthony Lawler said, in a release to the NZX last week, that supply had been unable to keep up with demand in some regions. In Australia, A2 milk sales had increased by an average 80% since Woodford's book was released there, Lawler said. more>>

High country ‘oppression’ continues
The exclusion of 65 properties from the tenure review process is a continuation of the Governments “campaign of oppression” against high country farmers. That’s the angry cry from Fed Farmers and the High Country Accord in the wake of yesterday’s announcement that new measures will effectively lock 65 lakeside high country farms into pastoral leases in perpetuity. Rural Affairs Minister Damien O’Connor welcomes the new changes proposed by Land Information NZ saying they will protect lakeside landscapes in the SI high country from “inappropriate subdivision and development”. “It is imperative that the natural values around lakesides be protected,” O’Connor says. “While that would normally be done by retaining Crown ownership, it is good to see recognition of other ways by which those values can be protected.” Ben Todhunter claims the 5km line around the southern lakes – inside which farms can not be freeholded – is “an arbitrary political device dreamed up in Wellington”. "The unilateral decision by the Govt to change the methods by which high country properties are valued, means that many families on lakeside properties are being squeezed by soaring rents, declining equity and the inability to freehold their properties. more>>

Farmers welcome dairy plan
The dairy farmer owners of milk co-op Fonterra have welcomed the board's plan to list on the stock exchange in 2010. Around 500 Waikato farmers were let in on the dairy industry's best kept secret yesterday, at a meeting at Mystery Creek Events Centre digitally linked to meetings in six other locations across the country. If 75%, or more, of the co-o's 11,000 farmer-shareholders give their approval in two votes over the next two years, Fonterra will change its name to Fonterra Farmers Co-operative and form a new company which would inherit the old one's assets and liabilities. The majority of shares 65% would be held by the co-operative and a further 15% by individual farmers. Twenty per cent of the shares would be offered to the public, raising between $2 billion and $2.5 billion. Fonterra said the listing would be a full one, not partial, since the whole company would be listed, not just one aspect of it. more>>

New weapon against porina and grass grub
Farmers will soon have a new weapon against porina and grass grub, thanks to a groundbreaking discovery by AgResearch. Researchers have discovery a new strain of bacterium isolated from insects known as Yersinia entomophaga MH96 that will kill many insects, once they are infected, within two to three days. AgResearch Scientist Dr Mark Hurst said that globally there has been a push for biological control of insects rather than the use of chemical insecticides. The most common form of biological control to date has been Bacillus thuringiensis (Bt). What makes this latest discovery of such significance is that Yersinia entomophaga is deadly against an impressively wide range of insects including beetles, grass grub, moths and caterpillars which are the major destroyers of agricultural and horticultural crops around the world. more>>

Why sheep and beef farming matters
A British article worth reading.
The production of beef cattle and sheep is one of the most traditional, and enviromentally friendly British forms of farming. It is however, for a whole variety of reasons one of the most threatened. This is not a plea for Govt help, subsidies or special treatment. We have a situation in England and Wales where too little of the value added in the beef and lamb supply is finding its way back to the producer for the sector to be sustainable.
NZ producers will relate to these comments!! (Editor) Read more>>

Hot air over gas count
A leading agriculture analyst has denied that the beef and dairy industries are big greenhouse polluters because of animal emissions.
In fact, eating less beef and fewer dairy products would not necessarily cut greenhouse gas emissions, according to Mick Keogh, executive director of the Australian Farm Institute. Mr Keogh, writing in the institute's newsletter, said calls to cut beef consumption, even to eat kangaroo meat instead, were based on the ruminant, or methane, output of livestock such as sheep and cattle. Animals' high emissions had led to slogans such as "less meat means less heat"."This conclusion, however, ignores the complexity of greenhouse emission accounting rules, and the fact that what is counted as emissions may not necessarily reflect the realities of the carbon cycle," he said. Atmospheric methane emissions had also stabilised since the 1990s. Only the methane emissions from the cattle (and nitrous oxide in animal wastes) are counted in national emission inventories," he said. "The positive side of the ledger – carbon dioxide and nitrous oxide removed from the atmosphere by the growing pasture – is not counted." more>>

Alliance eclipses PPCS with payout
Alliance Group shareholders will receive $7.8 million in pool payments after the co-operative posted a modest profit yesterday.The result was unexpected after Alliance warned at its round of consultation meetings earlier in the year that there was unlikely to be an end-of-year surplus. However, the co-op announced an operating profit of $14.4 million from a turnover of $1.1 billion for the year ended September 30, 2007. This result sets it miles apart from its rival PPCS, which produced a $40 million loss. Alliance chief executive Grant Cuff said shareholders could expect to receive an average $60 a lamb this season if the NZ dollar remained stable at US70c. "If the currency goes back up, it will have an effect on our ability to hold lamb prices up," he said. more>>

FEC halved, big savings
Nelson farmer Peter Moore claims to have halved faecal worm egg counts on his 560ha farm and saved $10,000 a year in drenching costs after buying their first low FEC ram in 1999, and gradually increasing their selected ram-breeding programme. He told farmers at Catapult Genetics WormSTAR North Island launch that his experience with selective ram genetics has proven huge potential savings in annual farm costs and promises an exciting new era in sheep breeding.They’d been regular heavy drench users for years because of their intensive production until they read about Northland ram breeder Gordon Levet’s selection programme for worm-and eczema-resistant and footrot-tolerant rams. They trialled one of his rams in 1999 and bought two in 2002.The resultant ram lambs looked the same on the ground, but the egg counts sired by a top resistant ram averaged 1450 eggs/g, compared with 3110 eggs in their non-selected rams sired by their previous non-selected rams. They continued introducing Levet rams, and heavily cut their drenching programme. more>>

Dairy boom blow-out
Amid record farm sale prices and skyrocketing herd costs, fears for the long-term future of the NZ dairy industry are starting to surface. New Waikato Fed Farmers president Stew Wadey warns of a definite downside to the current dairy bonanza as prospective young farmers have their dream of farm ownership shattered by costs spiralling upward and seemingly out of control. Wadey says in the past it has been these young farmers who have strengthened the ranks of dairy sector leadership but today they are leaving the industry, demoralised by the costs and dispassionate about their future prospects. “We’re part of a dying breed,” he told Dairying Today during at interview at his 93ha Matamata farm. “We’re a family operation and you’ll eventually see this type of situation disappear – that’s a problem. “What we’re finding is that people whose first choice of career was once to be a farmer don’t want to be cup swingers nine hours a day for the rest of their lives.“The problem is they’re the sort of people we need to keep the leadership of our industry strong.” more>>

Westland: Payout may match Fonterra
Westland Milk Products has lifted its payout forecast for this season to between $6.25 and $6.40/kg MS and raised its advance to $4.65/kg MS. Westland chief Scott Eglinton said the company had been able to make early season sales at high commodity prices. With ‘runs of the board’ it was able to more confidently predict this season’s payout. Westland is processing milk from Synlait’s Canterbury farms and for the first few weeks of the season processed milk from N Z Dairies , which had been unable to complete its plant on time for the start of the season.The current dairy commodity price boom works particularly in Westland’s favour as its product mix is fundamentally milkpowders with some butter and fat products. For that reason the coop, which processes around 3% of NZ’s total milk supply, was able to beat Fonterra’s price of $4.46 in 2006/07 by 12c/kg MS. Westland had also retained earnings equating to 10c/kg MS. Westland’s advance for this current season, at $4.65, is already 45c ahead of Fonterra’s advance.
more>>

Supreme Court ruling ends wool battle
A nine-year, multimillion-dollar fight between a group of specialist wool growers and the former Wool Board has ended. The Supreme Court has refused the farmers leave to appeal against a Court of Appeal judgment that overturned a High Court ruling that found the board negligent and liable for damages. The argument goes back to the mid-1990s when a small group of Saxon merino wool farmers sought compensation for levies paid to the Wool Board to recognise the international marketing they did to sell the superfine Saxon wool to high-fashion garment-makers under the Saxmere and Escorial labels. The Supreme Court decision means the winding-up of the former board can be completed. The disestablishment company held back $8.5 million to cover legal disputes and redundancy payouts and now has about $7 million to distribute to farmers. more>>

Fonterra chases Chinese market
An attempt to capture more of the soaring international demand for raw milk is behind Fonterra changing its capital structure. Fonterra has identified access to international fresh milk markets as a key to expansion, but capturing that business comes at an estimated cost of $3 billion, or an extra $3 a share if funded by shareholders.Fonterra is already the second largest player in Australia, has a stake in China’s largest dairy factory, is developing a 3000-cow dairy farm in China and operates joint ventures in the US and S America.While international liquid dairy consumption is growing at 3%, cross-border trade in dairy products is growing at just 1.2%. Demand in China for fresh milk is forecast to grow 22% in the next five years, yoghurt 31%.That new growth is expected to be met by local suppliers, so Fonterra’s strategy is to capture more of that behind-border trade in fresh milk. Given Fonterra’s economic importance, the Government will be watching to ensure a new capital structure will prevent the company falling into foreign ownership and control. more>>

Partial listing for Fonterra?
Farmers and financiers are waiting with bated breath for Fonterra's announcement of its preferred capital structure on Thursday. Though the investment community will be licking its lips at the prospect of Fonterra opting for a partial listing, the co-op's dairy farmers will be worried about the potential tensions if non-farmers can become shareholders and, most importantly, if this will affect the price they get paid for their milk. The co-op will present its preferred option along with several others it has considered at seven digitally linked meetings around NZ. Chairman Henry van der Heyden will make the announcement from Christchurch. On Friday, Fonterra poured cold water on a National Business Review story that claimed Fonterra would opt for a partial listing with two types of shares - one for farmers and one for non-farmers. more>>

Quality pasture and mgt puts farm in top 10%
Mokonuiarangi is Mark and Anne Gemmell's biggest asset. The Rere couple farm Mokonui Station, a 872ha property tucked into the north side of the massive 821m high hill. Mokonuiarangi shelters the farm, much of which faces south, from the direct effects of the southerly, giving it significant climatic advantages over nearby farmland. Mark, who is rather more well-known through Gisborne as a Summit Quinphos field officer, spends 80% of his time in this role. "Working off the farm has given me a great opportunity to see what works on farms and what doesn't. It's like going to a discussion group every day of the week. I really enjoy working with people and seeing their farms develop." Mokonui's sheep returns have averaged almost $90/su in the past five years. They're easily in the top 10% of Gisborne producers based on figures from AgFirst's Rere district farm management groupThe profitability of their system comes from high lamb growth rates of more than 300g/day through lactation, Mark says. High lamb growth rates are a combination of good quality pasture, strategic nitrogen (N) use and good genetics, he says."But pasture quality and grazing management is the driver." more>>

Meat action group endorses two for Alliance
MIAG spokesperson Keith Milne said it offered a unique opportunity for Alliance shareholders and urged them to seize that opportunity. "These impending board of director elections later this month give Alliance shareholders the first real chance in a long time to send a firm message to the whole industry," Mr Milne said. MIAG had given Mr Crawford and Mr Miller its full endorsement. "These two men see challenges where others see hurdles," Mr Milne said. "Their commitment, expertise and energy offers huge potential for the future of Alliance Group Ltd and the opportunity presented here to shareholders, coming off the back of three poor seasons, could not come at a better time."more>>

Confidence fluctuating
A gulf between sheep and dairy farmers is splitting rural confidence, says Fed Farmers leader Charlie Pedersen. He said farmer confidence was up, but it was only a year ago that dairy farmers were "bleeding money" and struggling to carry on at a mid- $4/kg milk payout. "There is a kind of gulf. The sheep farmers are saying it cannot get any worse and can only get better. Dairy farmers are probably saying this is a payout beyond our expectations and it can only get worse. It says a bit about the Kiwi mindset."Pedersen said that 30 years ago the high returns would have led dairy farmers to buy a new car, but today they were more intent on banking money. Rising costs and a period of dairying expansion was probably behind this approach, he said.In the commodity seesaw farmers are experiencing, dairy and arable products would be at the high end, with wool, lamb and pork at the bottom and beef somewhere in between. more>>

Dairying land in demand
Good dairying land has risen in value between 30% - 40% in Canterbury over the last year, to about $35,000 a hectare, in line with increases in the milk payout. Properties suitable for converting to dairying or for grazing cows in the milking off-season and providing feed, was worth just $20,000 to $22,000/ha a year ago. But few operating dairy farms were coming on to the market despite high demand for them, because owners were making the most of the forecast payout of $6.40/kg of milksolids, said PGG Wrightson's South Island real-estate manager, Peter Crean."Dairy-farm purchasers are analytical and they do not go over the top at these levels. These prices stack up and are concurrent with the payout." The company's rural real- estate branch sold a 166ha irrigated beef finishing farm this week near Burnham for $5.625 million, nearly $34,000 a hectare. It will probably be used as a dairy support block or for conversion to full dairying. And a 198ha non-irrigated sheep farm near Methven was sold at auction for $5.3m to dairying interests. It appears destined to be a support block. Both auctions were well attended. more>>

Farmers polled on fertiliser use
Environment Waikato is polling farmers to see how they use fertiliser.
The regional council is conducting a telephone survey this month to find out when and where dairy, dry stock and horticultural farmers use fertiliser.EW environmental services programme manager Ross Wightman said the council wanted to find out whether farmers understood existing rules and how it could support land owners to work within the rules and industry guidelines.The survey follows the release of two quick reference guides for landowners covering the permitted activity rules most farmers in the region carry out, including fertiliser use. more>>

Complacency could risk a rise in bovine Tb
The increase in dairying could threaten Southland's relatively low incidence of bovine Tb. Regional Animal Health committee chairman Mike O'Brien said farmer complacency over stock movement, not Tb vectors, now posed the greatest risk to Tb freedom."There is a real risk that Tb will be brought into the region on the back of a truck with the increase in dairying," he said. Southland remained stable with just three infected cattle and deer herds and no new infections related to wild animal vectors have been recorded for the past two years. Mr O'Brien attributed the "brilliant" result to good vector control in the Hokonui Hills, as a result of the controversial aerial 1080 drop three years ago. National AHB chairman John Dalziell said the continued good results meant the AHB was well ahead of its target of 0.2 percent of infected herds by 2013, with a national incidence of just 0.39 percent. more>>

PPCS announces job cuts
SI-based meat giant PPCS plans to cut 60 jobs closing venison and lambskin processing operations, to improve its troubled business.
Last month NZ's biggest meat processor posted a $40 million pre-tax loss, blaming the tough year on the high kiwi dollar and lower export lamb prices. The Dunedin farmer-owned co-operative has also breached terms of its banking facilities but received waivers from its banks. It had breached its interest coverage ratios regarding interest payments on bonds issued to investors. CE Keith Cooper said PPCS was proposing to close its Te Kauwhata venison processing facility and its Balclutha Windward base, which manufactured finished lambskin products. "The proposed changes are part of the company's strategic change process announced last week which seeks to deliver an improved business model and return PPCS to its traditional profitability over the next two years," Cooper said. more>>

Sheep farmers face another hammering
Sheep farmers fear another season of dismal returns for lamb is on the cards perpetuating the exodus from the sector and exacerbating its problems. A failure to restructure has left the industry carrying unnecessary overheads and powerful international supermarkets again hold the whip-hand in negotiations, they believe."The fundamentals haven't changed," said John Gregan. "The (co-operative) companies had their opportunity; the farmers asked them to look at their structure and to be less fragmented in their marketing, and for one reason or another they decided to go it alone and that's just going to help the supermarkets." Surplus processing capacity needed closing and greater co-operation in marketing lamb, particularly in Europe where over half of NZ's exports end up, was needed, he said. I fear the companies will be tendering against each other, going as low as possible to try to get the volume."At the other end of the supply chain, schedule and saleyards pricing was again being driven by procurement rather than market signals, he maintained, a point fellow farmer Derek Marr endorsed. more>>

Geneticist urges better use of sires
Sheep farmers were losing money by not using their terminal sire rams efficiently, a leading NZ geneticist said. Dr Geoff Nicoll, who heads Landcorp's genetics and nutrition unit, based in Rotorua, said at 130% lambing, or better, farmers could afford to mate half their ewes to a terminal sire ram and still produce enough flock replacements. However, in many cases terminal sire rams were used over only 30 to 40% of a flock. "It's a good business decision to maximise your use of your terminal sires and the number of prime lambs produced. "You don't need as many white-faced rams as you think you do." Dr Nicoll said using a 50:50 ratio of terminal and maternal sire rams meant that for every 100 ewe lambs born 85 could be retained to generate enough flock replacements.While this would reduce selection pressure, extra ewe lambs could be put in to top up the flock if necessary, he said. more>>

Greenhouse gases cutting dairy farms' edge
NZ dairy farmers are being warned to focus on their energy and greenhouse gas efficiency if they want to remain competitive with their European counterparts. An AgResearch-commissioned sustainability study of the country's farms found that while they remained more efficient than their European Union counterparts, the gap was closing. AgResearch principal scientist Dr Stewart Ledgard said dairy farms here were ahead of those in the European Union in terms of on-farm energy use and food miles. However, their "competitive advantage is diminishing", he said. "Farmers need to start using knowledge of the main factors influencing greenhouse gas emissions to improve farm practices or plan intensification options and retain their competitive advantage." Increasing productivity per animal and optimising use of effluent to reduce fertiliser used were two options to decrease emissions, he said. more>>

National deer genetic unit backed
Widespread uptake of a national genetic evaluation system has been a major accomplishment for the country’s deer industry. The deer stud stock industry has undergone major changes in the past five years. Demand for top stags with advanced velvet and hard antler or trophy genetics is high and has been steadily increasing, especially for deer with English or European genetics or a combination of the two. N Z’s national deer genetic evaluation system DeerSelect, launched in 2005, was a major accomplishment for the industry. DINZ, the NZDFA, AgResearch and Sheep Improvement Ltd joined forces to establish the system. It makes across-herd analysis of growth rates and venison production across the country’s top stags available for all NZ deer farmers through the DeeResearch website. DeerSelect steering committee chairman Collier Isaacs said it was a significant milestone for the industry, bringing it into line with other national livestock industries which have been genetically evaluating breeding traits across herds for years. more>>

Farmers sought for worlds priciest steak
One of Australia's biggest beef producers has gained clearance to buy two large farms south of Auckland to farm wagyu beef - the world's most expensive red meat. Trade Lines Malaysian, controlled by Australians, got Overseas Investment Office permission to buy two big land blocks at Orere Pt in Manukau to expand an existing beef and polo pony business. The company said it wanted to farm wagyu beef, which can fetch close to $1000 a kg because it is so tender. The marbled beef has up to 25 per cent fat through the muscle and the meat fetches a premium in the United States, Europe and Asia. Wagyu cattle are genetically predisposed to increased marbling. A special diet which can include sake and beer helps to give the meat a higher proportion of unsaturated fat. Auckland restaurant Jervois Steak House offers wagyu beef for a minimum of $100 per steak. more>>

Discussions from a disgruntled lamb producer
What we don't understand is this: Why suppliers producing $1 billion worth of product are content with no contracts and assuming all exchange rate risks are happy to produce the product hoping someone will want it and accept the unknown price on the day 12 months out? Why we are being paid $1-$3.50 and being asked to be loyal, when we know that our lambs will sell for $6-50/head more at the local saleyards? Why are companies disassembling, repackaging and exporting $1 billion worth of product happy with making just $20 million of profit? Why are we Alliance shareholders more worried about the $1/share on 10,000 shares we are told we might lose from merging with PPCS than the $5 per lamb on 2000 lambs they will make from a merger year on year? Why hasn't someone bought a closed plant or amalgamated with a minor player? Why has PPCS got six and AFFCO two more processing works open than they need and all the overheads that go with them.? Why would they sooner be screwed annually by large farmers, agents, traders, Landcorp and dairy farmers (with cull cows) and be content to undercut each other overseas and force us from economic necessity to convert to dairy or dairy support than: more>>

Doug rattles fertiliser myths
Some of the myths and rumours around fertilisers got a rattling when Waikato-based fertiliser expert Doug Edmeades visited Marlborough for the first time, and was a speaker at the Marlborough Monitor Farm day last week. Dr Edmeades said he started the company because there was a gap between the science and the farmer. He immediately refuted any suggestion that he was "in the pocket of the fertiliser industry", after allegations in the Probitas saga where Ewan Campbell accused him of being in cahoots with fertiliser companies.. Dr Edmeades gave his views on the form of phosphate, such as superphosphate, Reactive Phosphate Rock (RPR), DAP, Triple and Dicalcic, which ranged in cost and value for money. He said it took six years of research into RPR when it first came to New Zealand in the 1980s to find out that not all the phosphate was available straight away. He poured scorn on producers who claimed their lime was so fine only a tenth was needed. Fine material would act faster but that was about all, he said. more>>

Australian lamb slaughter numbers soar
The Australian Bureau of Statistics says the number of lambs killed and processed in September was the highest on record. Latest figures show lamb slaughter numbers increased for the fifth consecutive month to 1.9 million. Lamb meat production also tipped the scales at 38,700 tonnes. Peter Weeks from Meat and Livestock Australia says the numbers reflect little rain, and stretched finances. "It's been so dry and grain prices are now so high that producers aren't willing to keep feeding them this year in the same way as they did through the drought last year", he says. "That does raise issues about lamb supply for the remainder of this production year. "If we've got big numbers now, then it's going to be pretty tight through the summer, autumn and particularly the coming winter". more>>

Tax takes big chunks of dairy payout
A "wonderful problem" presents itself for many clients of Matamata accountant Bruce Harris this year. A veteran of dairy farm accounting and commodity cycles has seen more peaks and troughs in the industry than he cares to count. He offers some sage advice on the first stop for many milk solid cheques this season. The latest payout forecast of $6.40/kg MS is the first truly realistic payment delivering real cash returns to farm businesses, rather than relying purely upon the inflationary nature of land value gains to push returns into double figures. He cautions though the wonderful problem comes in the form of taxation, and most dairy farmers will have already been stung by their first provisional payment on September 7. He takes issue with the Govt's inability to deal with fiscal drag, or the gradual upward creep of incomes meaning even relatively lower incomes get captured in the higher tax bracket. "Talk by National at the last election of raising the 39c in the dollar threshold from $60,000 to $100,000 felt about right to me. This failure to review the thresholds, along with this inflationary boost, is an insult to most people's intelligence. more>>

Grimes floats land tax
Reserve Bank chairman and economist is proposing a $12 billion land tax, higher gst and slashing personal tax rates, but says the idea is "a personal one". A 1% a year land tax to raise more than $12 billion and raising gst to 15% would allow for a cut in personal income tax to just 20%, with low-income earners paying no tax. Dr Grimes raised the idea at the Business Budget summit in Wellington yesterday. Finance Minister Michael Cullen, also at the meeting, questioned how people would pay the land tax if they owned property that was not earning an income, but he would not comment further. The idea to reduce the top tax rate from 39 per cent to just 20 per cent for people as well as companies comes less than a week after Reserve Bank governor Alan Bollard warned the Government against tax cuts. Last week, Dr Bollard held official interest rates steady but targeted Dr Cullen for adding to inflation and risking more through tax cuts. more>>

Red meat in the clear
NZ's are eating beef and lamb in moderate amounts within the guidelines outlined in the new World Cancer Research Fund (WCRF) report published today. The landmark WCRF report, ‘Diet, nutrition, physical activity and the prevention of cancer: a global perspective’ has been five years in the making and is the largest report of its kind, based on 7000 scientific studies of all shapes and sizes. In contrast to the first report ten years ago, obesity and inactivity are now clear leaders when it comes to putting yourself at risk of cancer. Prof Jim Mann, Otago University, said “Obesity and lack of physical activity increase the risk of a whole range of cancers, including some of the commonest cancers we know. Reducing the incidence and prevalence of obesity is an absolutely critical factor in cancer risk reduction.” The first report put single foods, such as red meat, under the spotlight, but not today, according to Mann. “To the best of my knowledge, and to the best of anyone’s knowledge, there is no evidence that moderate intakes of red meat cause any harm in terms of cancer, or indeed I might say, anything else I’m aware of. Indeed red meat is an excellent source of a whole range of nutrients.” more>>

Celebrate Opuha dams success
Fed Farmers joins with the community of Sth Canterbury in congratulating all those that helped develop the very successful Opuha dam project. The dam’s benefit to the community includes hydro electric generation, a community water scheme, a greatly enhanced downstream river system, and assured irrigation to farming.
“We congratulate the South Canterbury community for an outstanding co-operative effort that has paved the way for a sustainable farming system for many years to come,” said Fed Farmers’ national board member Donald Aubrey. “Without the support of key community people the vision of local farmers could never have been realised. This is an example of what can be achieved when a district pulls together, said Mr Aubrey. Partnership company chairman Tom Lambie said: “This is an achievement well worth celebrating. Since the dam opened in the late 1990s, more than 16,000 ha of new irrigated land has added 480 jobs, and injects $145 million dollars into the South Canterbury economy each year. more>>

Cheviots- revolutionize hogget lambing
Hogget lambing is only viable if a ewe's breeding future remains uncompromised, while producing vivacious lambs.
When King Country farmer Bill Balme and his father, George, decided to attempt hogget lambing, it took some time to discover the best breeding cross. They had been buying in store lambs for finishing and thought hogget lambing might be a better option.The Balmes had continued to trial various rams for hogget mating, but struggled with lambing problems and hogget deaths.They decided to try Cheviot rams from Mahoenui breeder John Spellman, initially mated over half the ewe hoggets, and were immediately impressed. "There was very little lambing to be done on the Cheviots and the biggest thing was we didn't get any hogget losses," Mr Balme said. The top 600 ewe hoggets are now all mated to a Cheviot ram. About 80% of those hoggets get in-lamb and one quarter scan in-twin. more>>

Science jobs could be lost
Hamilton could lose up to 60 top dairy scientists unless the Govt comes through with funding for a new research facility, says AgResearch boss Dr Andy West. AgResearch plans to build a $26 million Pastoral Foods research centre at its Ruakura campus. The one-stop research and development shop would focus on turning agricultural products, including meat and milk, into high-value goods. But the Economic Development Ministry is looking at which food research centres to fund, and Ruakura faces strong competition from a Massey University-backed project at Palmerston North. A recommendation on funding is expected later this month.Dr West said that if the Government backed Palmerston North, AgResearch could move its dairy science division there. "Sixty dairy sector staff would be out on a limb if we're not going to get an investment in Pastoral Foods," he said. "We would be shifting a significant portion of our staff to Palmerston North. If there is another centre of food research then we can't leave 60 scientists marooned there (at Ruakura)." more>>

Young farmers see bright future - Education the key
Knowledge, business skills and sharing experiences are vital for success in a volatile agricultural environment according to a group of leading young farmers, who say they see opportunity and a bright future for themselves in the industry. The group was made up of 36 of Australia and NZ’s most promising young farmers, who had gathered in Christchurch, to attend Rabobank’s second Farm Managers Program held earlier this month. Amongst the key challenges that the participants - who came from as far as Port Headland West Australia and Te Anau in the SI - identified as looming large in their futures’ included globalisation, labour management, technological advancement, diversification, the scale of farming and the importance of environmental image. Each of these challenges also presented an opportunity according to the group, providing they had the skills necessary to capitalise on it and a willingness to embrace change. more>>

New genetic marker to help in wormy fight
A genetic weapon has been launched against the $100 million problem of worm resistance in young sheep. Catapult Genetics, a NZ-Australia research venture, has unveiled the latest in its armoury of gene markers to farmers. It's North Island launch was on Friday to 60 people at the Hiwinui Estate near Palmerston North. The audience was mostly made up of ram breeders, but there were also stock agents and scientists. The genetic marker is marketed as Wormstar. It identifies sheep that can both fight off the worm challenge, excrete fewer eggs in their fecal matter and grow well at the same time. Wormstar is a world-leading DNA test for parasite resistance in sheep.It comes at a time when worm resistance to chemical drenches has been steadily rising on sheep farms. Hawke's Bay veterinarian Richard Lee said all indications are worm resistance to chemicals will continue to grow and there could be and exponential growth over the next three to five years. more>>

Semen straw sales hit 100000
In a world first more than 100,000 straws of dairy cattle semen were processed and dispatched in a single day by farm improvement company Livestock Improvement Corporation (LIC). The farmer-owned co-operative has been using artificial insemination (AI) to drive genetic gain in the dairy industry for more than 50 years and breeds four of every five dairy cows in NZ. Mating of dairy cows is currently hitting its peak, with calves due next spring. The dairy industry expansion is driving demand for top-quality genetics to new heights and on one day last week, a record breaking 101,777 straws left Hamilton. The co- operatives best bulls are kept there. Genetics general manager Peter Gatley said no other genetics company in the world even comes close to being capable of processing and delivering that quantity in one day. "This would be near impossible with conventional frozen semen but with our fresh semen technology we can generate ten times the volume. more>>

Farmers must get off their backsides over wool issue
The Wool Equities annual general meeting this Thursday, November 1, promises to demonstrate just how interested in their wool industry farmers really are. For those with short memories Wool Equities was launched in 2003 with great fanfare as being the saviour of our wool industry. Farmers were given shares, each worth $1, according to the number of stock units they had and we all waited in wild anticipation. Since then WEL has given the sincere impression of being a basket case and why anyone would want to invest money in it is beyond me. The balance sheet appears unsustainable and they keep making losses. This year the loss was a mere $1.9 million, despite selling the Wool Testing Authority for $2.04 million. There is a group, however, that thinks WEL can rise again and that is the Wool Action Group (WAG) chaired by Cliff Heath. To say he is passionate would be an understatement. more>>

PM excited by Lincoln dairy farm research
It is important for NZ to stay ahead of the trends in food, beverage and agricultural production, preserving the NZ brand and its markets through science and innovation, said Prime Minister Helen Clark at Lincoln University. Speaking at the University’s state-of-the-art dairy farm (26 Oct.), she said “fortunately Kiwi farmers have always shown an incredible willingness to pick up new technology.” An example of that new technology, the nitrification inhibitor eco-n developed by Lincoln University researchers in partnership with Ravensdown, was described to her by soil scientists Professor Cameron and Dr Clough. They outlined the environmental and production benefits its use can deliver. Environmental benefits include, downwards, a reduction in nitrate leaching from cow urine and the damage it can cause to groundwater and, upwards, a reduction in emissions of the greenhouse gas nitrous oxide. Production benefits include an increase in pasture generation. Prof Cameron and Dr Clough showed the PM projections illustrating that with 100% eco-n usage by the dairy sector NZ’s greenhouse gas emissions could be brought back almost to the 1990 level required under the Kyoto Protocol. more>>

Affco boss critical of meat industry
The NZ meat industry had adopted a "last man standing" mentality and the winner would be the one with the strongest balance sheet, Affco chief executive Stuart Weston said. He said the present model of several big meat processing companies fighting for supply was detrimental to the lamb industry, but he ruled out a single sales channel. Mr Weston said suppliers could expect another $10 a head for lamb this season. While NZ lamb was a "fantastic" niche product, it was stuck on a commodity rollercoaster, Mr Weston said. "If we can stimulate demand then we can reduce the supermarkets gatekeeping power. Supermarkets don't care about farmers' livelihoods but profit per square metre." Mr Weston said meat companies could work closer together to improve returns for lamb, but had adopted a "last man standing" mentality, which he did not support. In the past, Affco had been accused of selling cheap to get a sale, when the opposite was true, Mr Weston said. more>>

PGG Wrightson 'on world stage'
The PGG Wrightson board painted a rosy picture of a company set to reap the rewards of the global protein boom at its annual meeting in Auckland yesterday. The company was on target for a better result than 2006/07, when it posted an after-tax profit of $41.4 million. A full-year forecast will be released when PGG Wrightson's half-year results are announced in February. The dairy boom presented the company with opportunities and PGG Wrightson was working on initiatives around sourcing cows and feeding them well, Chief Executive Brook said. PGG Wrightson's $170 million Uruguayan investment fund – NZ Farming Systems Uruguay – is set to float on the NZX before Christmas. Chairman Baylis described it as the standout initiative of the 2006/07 year. more>>

Dairy Trust may build two plants in south
Dairy Trust hasn't ruled out building a second milkpowder factory in Southland. CE Mark Fankhauser said there had been strong interest from dairy farmers to supply the company's first plant at Awarua, near Invercargill, which cranks up next season. "If we are over-subscribed in Southland, we may announce another factory," Mr Fankhauser said. Dairy Trust has an initial production target of about 35,000 tonnes of milk powder or 200 million litres of milk, and to achieve this requires about 60 farmers milking about 40,000 cows. The company was targeting new conversions and existing milk suppliers within a 120km radius of the plant, Mr Fankhauser said. "There are some big conversions going on and we are keen to get them on board, but really we are targeting anyone with cows." Depending on the size of herds, between 50 and 70 suppliers were required next season. The aim was for milk to be flowing at Awarua by August 4 next year after water tests, equipment testing and staff training had been carried out, he said. more>>

$40 million loss for PPCS
Overview
-Appreciating currency and challenging market conditions affected profits
- Positive trends on all other financial indicators
- market positive, but currency remains an issue
- strategic initiatives completed or underway
- 2008 PPCS will further rightsize the business to the current livestock supply base
- Focus on core business, food
- long term outlook is positive for food protein. more>>

Bitter winds chill prime lamb supply
Recent comments from the meat industry regarding the future value of may be encouraging, if somewhat speculative, but other factors may well have quite a serious effect on prime lamb production. Those winds! All eastern regions of the North Island have been quite seriously effected, especially Hawke's Bay, the Wairarapa, and, to a slightly lesser extent, Gisborne/East Coast and the Bay of Plenty. Reports from senior stock agents across those regions indicate grass production is well behind the normal for October. In Hawke's Bay export-lamb producers are being forced to sell ewes with lambs at foot in an attempt to ensure sufficient feed for those they retain. The returns from doing so have not been great either, with many lines sold between $32-$35 all counted. The reasonable conditions through August and September allowed for good survival rates of lambs born, but now October's cold strong winds have cut grass supplies and this must inevitably lead to irregularities in the supply chain to processors. Sheep and cattle numbers coming to auction are dropping rapidly at most centres, with agents reporting an atmosphere of uncertainty and general dissatisfaction among sheep and beef farmers. more>>

High country headaches
The tenure and pastoral-lease rent reviews are continuing to vex affected parties. One area of uncertainty is over for Geoffrey Thomson, who runs Mount Earnslaw Station at the top of Lake Wakatipu, but another worry is looming. He recently received a letter from Land Information NZ formally advising he had been withdrawn from its high-country tenure-review process. The letter came as no surprise, he said, because of how far apart the parties were. But now he is concerned about what will come next in terms of reviews of his pastoral-lease rent. "The thing that concerns us is they (Linz) put up rents if you're in an attractive area," he says.Through the High Country Accord, which he formerly co-chaired, Thomson is continuing a legal tussle with the Government over rents. His rent will increase by 800% if a government review is adopted. In June, Land Information Minister David Parker and Conservation Minister Chris Carter pulled the plug on tenure-review negotiations with 40 runholders on 200,000ha of prime lakefront land. more>>

Plan to lift flagging strong wool
A blueprint by the Wool Industry Network (Win) to revive a flagging strong-wool industry will be released before the end of the year. Win has identified that the $1 billion wool industry needs a streamlined, market-driven approach, with strong brands and market support to lift wool exports.The devil, however, lies in the detail, and after approaching farmers and industry groups and releasing a discussion document in April, the network's board is refining its "model-for-change" report. The report will include yet-to-be-detailed market and structural initiatives for a wool U-turn, with the emphasis on strong wool sent overseas for carpet and textile manufacturing. Win's chief executive, Mike Jones, said a market and branding-based model to lift wool as a niche product was being fleshed out for release soon. The Beehive-backed network has $2 million in Government funding and $3.175m from MWNZ over the next three years to improve the economic contribution of the wool sector to the NZ economy. more>>

Important primary industries anticipate market changes
The world is changing fast. It is important for countries as isolated as we still are from the mainstream of commerce, that we not only keep up with the changes but also anticipate and prepare for them. With this in mind we have high hopes that next month’s Primary Industries Summit in Christchurch will provide both a vision and a blueprint for the farming sector in a tough and fast-changing global economy. Its objectives are:• to examine the changing trends in consumer demand;• to assess their impact on existing markets and sectors, and • to develop ideas that maintain and extend NZ’s competitive advantage. As the brainchild of Agriculture, Fisheries, Forestry and Biosecurity Minister Jim Anderton, the summit is the largest cross-sector event of its kind in more than 20 years. Mr Anderton says the question is not one of simply selling greater volumes of product but of earning more, explaining: “Only our primary exports have the global scale, sophistication and competitive advantage to compete with other first world countries.” more>>

Confidence returns to deer sector
Confidence is returning to the deer industry after four years of low prices that forced many farmers out. While NZ’s venison production is falling, markets in Europe are expanding and this has resulted in price increases. Livestock Improvement , which launched a deer genetics division three years ago, says insemination volumes rose 70% last season in another sign of returning confidence. Deer NZ chief executive Mark O’Connor says the challenge for the industry is to develop long-term partnerships with venison distributors in Europe. On a rising market it’s easy for traders to buy, hold and sell at a profit. However, O’Connor points out traders have not invested in the promotion of New Zealand venison. “Therefore it is important that companies which are processing and exporting your venison are supporting distributors that are investing in market development and who will be part of the future.” Venison producers have been urged to sell deer to companies that are committed to the future and not just the present. more>>

Author fears inquiry whitewash
The author of a book questioning health benefits of NZ milk is cautious about the latest inquiry announced by the food safety watchdog. Prof Keith Woodford, Lincoln University says the inquiry around the New Zealand Food Safety Authority’s perceived integrity of A1 and A2 milk and “does not seem a good start”. Woodford doesn’t want the inquiry to be a case of “mates reviewing mates”. He would prefer the scientific review to be carried out by someone from either Europe or Scandinavia. “I’m not going to suggest specific people because that would be the kiss of death for their chances,” he says. Woodford also wants the management of both inquiries taken out of NZFSA’s hands and has written to Food Safety Minister Annette King. more>>

Technology shows its benefits for larger dairy farms
The Waikato would be $85 million better off if technology trialled on a Walton farm was used on 600 more farms in the region, says Waikato University. David and Raewyn Bennett's 232ha high performing dairy unit, at Richmond Downs, near Walton, was the testbed for an 18-month Innovation Waikato integrated farm management project that ended recently. The aim was to connect the latest technologies on-farm to help farmers boost profits, productivity and environmental sustainability. The farm milks 1000 cross-bred cows and produced 549,000kg/ms last year. Mr Bennett expected production to rise close to 600,000kg/ms this year as a result of a larger herd. The Bennetts already had a rotary cow shed with Protrack EID (electronic identification tagging) before being approached by Innovation Waikato. "They added other things in the cow shed that would also add value, like milk meters, a weigh scale, and other small bits of technology," Mr Bennett said. more>>

First fawns enter research farm
Deer Improvement Ltd has celebrated the arrival of the first fawns on its Balfour Research Farm. Director Peter Gatley said early fawning had the potential to deliver significant benefits for deer farmers. "We can get weaners to killable weights earlier in the season and get the best prices and get the new crop of fawns off to a flying start," he said.The fawns, which started arriving at the research farm by mid October, were believed to be the first born in NZ this season, a month earlier than usual. Mr Gatley said CIDRs were used to get the hinds cycling early and on February 24, 150 yearlings were inseminated and almost half (49%) got in calf to the single insemination. The rest were then mated to a backup stag. While 70% of hinds would normally be expected to conceive to AI, the result was still pleasing because of the earlier conception date. Mr Gatley said earlier mating and fawning would have a positive spin-off for the industry. more>>

AgResearch and Landcorp Farming sign MOU
AgResearch and Landcorp have formalised an industry good relationship with the signing of a Memorandum of Understanding. Landcorp’s Manager – Corporate Strategy, Collier Isaacs said the MOU will help align the two organisations’ activities around innovation in agriculture with the expectation of mutual benefit. “This will formalise our current cooperative relationship with AgResearch and ensure that we look at where our common interests are,” he said. “Where in the past we’ve done things on a more ‘ad hoc’ basis, this memorandum will bring us into closer dialogue in examining where opportunities in innovation lie.”Landcorp has 104 farms running 1.6 million stock units that are spread across the length and breadth of NZ. It has been in business for 20 years and last year produced 9.3 mil kgs of ms, 2,920t of venison, 8,830t of sheep meat, 10,448t of beef, 3,210t of wool and 14.1t of velvet. The Memorandum will facilitate better access for AgResearch to Landcorp’s large scale farming resource and experience, while Landcorp stands to benefit from leveraging the scientific expertise of the CRI. more>>

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