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Barry Thompson from Pigeon Bay and his dog Ned do battle with some headstrong sheep during the dog trials at the 2014 Canterbury A&P Show. Both competitor and numbers attending the show were up this year mirroring attendances at other regional A&P shows around Canterbury and

the West Coast. Canterbury Farming looks at how the regions A&P shows are garnering more attention on the back of Canterburys dairy boom. See story on page 10

Show time

Mega meat co-op mootedby Kent Caddick

The creation of a new mega meat co-op is vital to the growth of the industry in New Zealand and to stave off foreign ownership of the industry.

That is according to Alliance shareholder and director candidate Russell Drummond, who runs three sheep and beef units in Southland with 22,000 stock units.

If Bay of Plenty Fertiliser and Southfert can become Ballance, if CRT and Farmlands can come together to grow membership and out-perform on merger bene ts, of course the

red meat sector can create a co-operative capable of performing at the highest level.

Mr Drummond said the creation of a new mega co-op is vital to the survival of both

Alliance Group and sheep and beef farming as a land use.

No sheep meat company is in a strong position with declining numbers, and while Alliance group may have

performed better than some an analysis of Alliance Groups nancial results shows that the Co-ops performance remains poor.

continued on page 2

2 November 2014

Alliance shareholder Russell Drummond is calling for a new mega meat co-op

1016 Weedons Ross Road, West Melton, RD1, Christchurch Ph 03 347 2314 Email info@canfarm.co.nz

Canterbury Farming prints material contributed by freelance journalists, contributing columnists and letters from readers.

The information and opinions published are not necessarily those of Canterbury Farming or its staff. Canterbury Farming takes no responsibility for claims made by advertisers.

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Price falling for some fertilisersRavensdown has initiated a price cut for key fertilisers as the dairy and other agri sectors grapple with volatile returns for farm produce on the world stage.

Urea is falling $23 per tonne, while DAP and GAS both drop $35 per tonne and potash drops $55 per tonne.

According to Ravensdowns chief executive of cer Greg Campbell the global trend behind this is a falling demand for ammonia-based products as Brazils market remains depressed.

Its notoriously hard to predict where prices of these global commodities are going to go, but our co-operative will do all it can, when it can to pass on these savings.

He said in terms of expenditure, fertiliser is one of the largest line items for a dairy farmer. Ravensdown chief executive

offi cer Greg Campbell says theres a global drop in demand

for ammonia-based products

Our people are out there now talking to customers about how they can optimise their nutrient investment.

Increasingly, its less about pumping out maximum production and more about far-sighted stewardship of soil fertility based on accurate test results and considered nutrient management plans.

Mr Drummond said a key to moving to a new larger single co-op will be attracting more supply as well as bringing back to the co-op the many shareholders of Alliance Group and Silver Fern Farms who no longer supply the co-ops.

This loss of supply is a result of procurement practices and uneven treatment of suppliers, combined with a lack of vision and plan to improve returns.

Of course we can attract back supply we have to rebuild trust and play fair.

Mega meat co-op mootedFarmers ultimately want to own and share in a winning enterprise.

Mr Drummond said that while it was understandable for some farmers to be a bit cynical, reform was achievable if farmers participated in elections and engaged with their co-ops.

If we dont lift returns for sheep and beef farmers, and for our co-operative, then we may be the last generation to enjoy using the land in this way, and our opportunity to create another strong export pillar for the New Zealand economy will be lost.

H e a c k n o w l e d g e d investment would be needed to achieve the formation of a mega co-op but said if things are left to continue as they are capital

investment in the industry will come from offshore interests and New Zealand farmers and meat businesses will lose control of the industry.

He said while Alliance still has a reasonably good balance sheet at the moment it is particularly exposed to falling sheep numbers, given its lack of a signi cant presence in beef.

Alliance has many challenges to its pro tability as it is largely a sheep meat company and is not highly competitive in beef. The trend line and current pricing points to reducing sheep numbers and increasing beef numbers.

Alliances big catchment areas for sheep in Southland and Canterbury have shown some of the biggest drops in sheep

numbers in New Zealand. Mr Drummond said the key problem faced by beef and lamb farmers is unsustainably low returns from their farms, averaging around just 1.5% as a return on investment, only slightly better than their co-op.

Returns need to be closer to 4% to compete with other land uses like dairy, beef nishing and cropping.

Mr Drummond said the only model capable of sustainably lifting returns is a new entity, a greater co-op capable of attracting 70% to 80% of supply, and of using size and scale to achieve more effective marketing and distribution, as well as rationalisation of over capacity and supply chain inef ciencies.

continued from front page

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Breaking with traditionby Trevor Walton

Deer farmers have enjoyed better prices for their venison in October, the time of the year when chilled venison demand peaks in Europe.

But the industrys real focus is on getting chilled season prices all year-round.

Since early October the national average venison schedule for benchmark 60kg stags has been sitting at around $7.73 a kilo, up from $7.43 last year. Some farmers have been receiving more than $8.00 a kilo.

This is good news, Deer Industry NZ (DINZ) chief executive Dan Coup says.

But once the last chilled season shipment to Europe departs our shores in early November, the reality is that venison prices will most likely ease again.

He says the industry is too reliant on producing venison for the short European game season in the northern hemisphere autumn. Its also frustrating for New Zealand producers to send animals for processing before they have reached their growth potential. In a slow growth spring like this year, many animals fail to make the cut.

Mr Coup says changes in farm production systems and market development are needed to enable farmers to maximise the income potential of their deer.

Farmers need the tools to grow their animals heavier, earlier and faster, so they can make the most of the traditional chilled season. The Advance Parties concept developed by DINZ is an important part of this work.

The second is to boost sales at chilled prices year-round, mainly by developing new markets and market segments.

Exporter Andy Duncan, speaking at the NZDFA branch chairmens meeting, said the industrys goal of diversifying sales away from the traditional game meat market is making steady progress year by year. This, combined with vastly improved pet food returns, has seen a reduction in the industrys exposure to the struggling Euro, with 65 per cent of sales last season in Euro and 35 per cent in US dollars up from 80 per cent and 20 per cent only two years ago.

As the US dollar strengthens against the Euro and Kiwi, this will be re ected in better returns to farmers, once companies work through their hedging positions.

His own business, Duncan and Co, has focussed its market development efforts on the sale

of Cervena in the United States, with considerable success.

Chilled season demand in Europe is for loins and legs during their autumn and winter. The rest of the carcase the shoulders and trim doesnt attract a chilled premium because meat from these cuts is slow cooked in a goulash where tenderness and mild avour are not attributes that chefs pay a premium for.

In the last year, we have been selling increasing amounts of trim into other markets, which means there is less available for goulash, which is a good thing. It puts pressure on prices.

Silver Fern Farms is also looking to move reliance away from Europe.

General manager marketing Sharon Angus told the branch chairmen that the co-operative is developing further the US market and targeted segments in Asia.

A longer-term prospect is China.She says the companys surveys show that consumer knowledge and awareness of venison is near nil in in Beijing and Shanghai. But with the right market positioning it has potential. After all, red wine was virtually unknown in China 10

years ago. Today, China is the worlds biggest red wine market.

Mr Coup says the potential of China is too large to be ignored. At the same time the market development challenge is too big for any individual company, hence all exporters are working with DINZ on a common

strategy. The traditional European game season will always be important, he says, as it will always offer premium prices for premium cuts in the chilled season. Extending the shoulders of the season has long been an industry objective, with modest success to date.

The big prize in Europe is to help develop a new market segment grilling cuts of farm-raised venison for sale year-round.

The concept is supported by food service in the market as well as all ve venison exporters.

Venison marketer Andy Duncan sets up a Cervena display at a trade fair in the United States, where his company successfully

built demand. The deer industry is now looking at another potentially big prize China

4 November 2014

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OConnor Commentswith Damien OConnor Opposition Spokesman on Agriculture

Securing the future of cooperatives

Agriculture in New Zealand has been developed around the co-operative structures formed by farmers to ensure their viability.

The KPMG agenda report released recently referred to cooperatives as the original social enterprises. The participating shareholder owners were concerned with the viability of not only their farming operations but also understood the importance of a wider bene t to their communities and the industries in which they were stakeholders.

Those cooperative structures have evolved and law changes have offered security and flexibility for cooperatives in the modern international environment.

Tax advantages have also incentivised individual business people in many areas of our economy to come together and work under cooperative structures.

For the most part they have been successful, with some exceedingly so such as the dairy industry companies that grew and merged to eventually

form the basis of Fonterra our single largest international and cooperative company. Others such as Alliance, Silver Fern Farms and Ravensdown have grown to serve the needs of their farmer shareholder owners. Commitment to these companies has varied depending on the exposure to risk by the participating shareholders.

Dairy farmers have milk which is a liability after 48 hours and therefore need secure structures and systems to process their milk. Meat and wool farmers have a product that has longer life and value and therefore have reduced risk from delayed processing.

The cultures that have evolved from these different risk profiles have led to variable levels of loyalty to our agribusiness cooperatives. In fact meat cooperatives have been known to offer greater incentives to the disloyal suppliers over their loyal and committed shareholders.

These perverse outcomes have created disloyalty, distrust, and ultimately uncertainty for the meat company supply chain

undermining the development of consistent and efficient processing systems. The dairy industry historically has been disciplined by the obligation to take all milk supplied, but enjoyed the bene ts of geographical dependence and consistent supply to a single company.

With the deregulation of the dairy industry and the emergence of options for dairy farmers to supply different companies, pressure is developing on milk processing companies to ensure a loyal and consistent supply of milk.

The ability to supply non-cooperative companies without the need for share equity, the ability to supply Fonterra under contract without fully paid equity, and the emergence of fixed price contracts are all new systems of supply and reward for New Zealand dairy farmers.

The issue of commitment and loyalty, or lack of, and its effect on the ef ciency of processing, will be a challenge that cooperative dairy companies will need to face into the future.

A Green Perspectivewith Ste an Browning, Green Party spokesperson on Agriculture

Biosecurity is everybodys responsibility

More work must happen at our borders to stop new pest incursions, but prevention, eradication and control programmes nationally, regionally, locally and at our own property boundaries also needs better focus.

There are too many examples of half-hearted attempts by government in managing new pest and disease incursions and in regional responses.

Animal and plant movement controls continue to be limited, even in the face of known threats such as Chilean Needle Grass, or Theileria orientalis Ikeda, a protozoa spread by ticks causing sickness and sometimes death of cattle.

Imports of feed or livestock for our farms, and the development of new pasture and forage plants that may include invasive traits or diseases need more scrutiny and precaution if we are to prevent further costly

biosecurity outbreaks. Chilean needle grass, now the subject of ramped up regional action groups with some Ministry for Primary Industries input, has been consistently spreading in Marlborough, North Canterbury and Hawkes Bay.

Fifteen million hectares are climatically suitable throughout New Zealand, with 0.52% of the area affected in 2010. However, the recent rapid rise in spread of this pest grass species known to exist in New Zealand since 1920 should ring alarm bells about how we have been managing internal biosecurity lately.

The emergence of action groups and local strategies to deal with Chilean needle grass is great news, although the strategic variations range from total control to containment.

Eradication should always be the vision, but MPI is somewhat erratic in its approach and too often has just mapped

the progress of a pest or disease until it is almost impossible to eradicate, becoming a permanent management cost on producers and the community.

To prevent new outbreaks of Chilean needle grass, Theileria, or other new pests or disease, we need to have strict farm gate control. Apart from ying in over the fence, new pests are invariably brought onto property in or on stock, plants, or as part of stock feed, or by machinery, vehicles and clothes.

Weed seed or disease may come domestically from another garden, farm or from imported animal feeds such as poorly screened and treated meal or Palm Kernel Expeller. All have risks and many can be stopped at the farm gate if we choose.

Control by government or landowner? Biosecurity is everyones responsibility.

Biosecurity costs New Zealand millions of dollars in attempting pest eradication and much more in ongoing management of pests in farming, horticulture, beekeeping and conservation, as well as in our own backyards and recreation areas.

5November 2014

Country Matterswith Rob Cope-Williams

The shows do go on

From the MinisterNathan Guy, Minister for Primary Industries

Canterbury show and irrigation

Its been a busy few weeks for me with Parliament sitting again, leading a trade delegation to India and Sri Lanka, and plenty of visits to Canterbury.

It was great to spend a day at the Canterbury A&P Show and catch up with lots of local farmers and growers. Around 100,000 people attend this show over three days, which is a great way of showcasing rural life to our urban cousins.

As Minister for Racing I attended a very successful New Zealand Trotting Cup at Addington. Its a big day out in Canterbury with over 23,000 people attending.

A few weeks earlier I was down in Canterbury checking out progress on the Central Plains Water Scheme. At $409 million it will be one of the biggest construction projects ever in Canterbury.

Stage 1 of the CPWL scheme will irrigate 20,000 hectares and will mean a reliable source of water for local growers and farmers.

Its estimated there will be additional economic activity of over $1 billion, an export boost

of at least $300 million per year, and hundreds of new jobs.

The Government is contributing through the Crown Irrigation Investment Limited, which provides kick-starter funding for projects like this.

They are contributing $6.5 million towards stage one and will be looking for more projects like this to support around the country. So far the Government has allocated $120 million out of a potential $400 million in funding to support irrigation and water storage.

Over the last two years as Minister Ive strongly advocated these projects and I see the election result as a mandate for our approach.

The need for new irrigation and water storage has been highlighted by severe droughts over the previous two summers. Its wasteful that we only capture around two per cent of rainfall in New Zealand, with the rest roaring out to sea.

A good example is the town of Martinborough in the Wairarapa. It can be bone dry in the summer, yet the nearby Tararua Ranges receive over ve metres of rain annually.

Ive seen for myself what a difference irrigation makes to rural communities, revitalising schools and entire towns creating jobs for locals.

There is potential for an extra 420,000 hectares of land across New Zealand to be irrigated by 2025, creating thousands of new jobs and boosting exports by $4 billion a year.

And as we know, this often has real environmental bene ts with more consistent river ows in summer and reduced pressure on groundwater sources.

Central Plains Water is a good example as 7580 per cent of the current groundwater takes in the scheme area will be replaced by surface and stored water once it is operating in late 2015. Replacing groundwater with river and stored water will improve water ows into Lake Ellesmere Te Waihora by an estimated 1520 per cent which will help improve its water quality.

Its great to see Canterbury leading the way and showing the rest of the country how successful irrigation projects can be.

After years of hand wringing, soul searching and brain-storming, it seems the Canterbury shows are back on the must go to list for exhibitors and spectators.

This year the Canterbury A&P is well up on horse, sheep and cattle numbers and despite the weather, the people did come. Visitors from South America and Australia plus other parts of the globe all ensuring their travel plans include the event bodes well.

With more and more positivity coming into the sheep and beef markets there is a feeling of con dence in those areas. New classes aimed at productivity rather than just looks are also helping to attract the commercial breeders into the picture.

For example the Corriedale breeders have a new class for ram hoggets that entails the sheep all being run together for months before the show and therefore not allowing any special feed or treatment for any one animal.

With about four or five categories coming into the mix for the dual purpose animal, the sheep were certainly under pressure to perform.

The result was a very even line with the judges having a very hard task to pick out the top one.

Other shows are also reporting good entries and a swing back to big crowds.

Ellesmere for example, say they had record crowds and a new vitality within their exhibitors.

That of course means that the atmosphere is better and everyone lifts their game.

It also means the networking works better and farmers, who traditionally work in isolation, are nding themselves enjoying mixing with others, chatting about everything under the sun and generally having fun.

It was my task to call the crowd to attention at the Canterbury show Presidents function, and I can assure you it wasnt an easy task, but to feel the comradeship that was owing within the crowd was a great buzz for me to witness.

No-one will be sure what caused the swing back, but like you I am thrilled that the A&P shows are back on the radar and normality rules in at least one area of our lives.

The old saying that the show must go on rings loud and clear as we swing into the spring A&P show season.

6 November 2014 RURAL PROFESSIONALS

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Country Law

with Ronald W. Angland & Son

Likewise, if the deceased did promise you something under their will but then made it up to you during their lifetime you would not be able to claim against their estate.

3) Thirdly, it has to be shown that the promise relates to the work performed or service provided. Great Aunt Doris promising little Beatrice a pony because she has such a lovely smile doesnt meet the legal criteria.

In this sense the law is similar to a contract situation its slightly different because the person providing the work or service didnt have to have expected payment and the focus is instead on whether the deceased said they would provide for them.

The biggest issue in making this kind of claim is that the person one would claim against is deceased. The court would have to look closely at the circumstances and any available evidence before making any award.

An award made under this law will tend to re ect the nature of the work or services provided and all the circumstances including what was promised.

This article has been prepared by Craig Wakelin, a Solicitor with Ronald Angland & Son, Solicitors, who may be contacted on Tel: 03 324 3033 or e-mail craig@anglands.co.nz.

Testamentary promisesIn New Zealand there is

a piece of legislation which allows for people to claim against an estate if they in some way provided work or services for a now deceased person who has said they intended to provide for them later on in their will.

For a claim to be made out under this law the person claiming has to be able to show that they performed work or provided services to the deceased (1), the now deceased person promised to look after them in their will (2), and the promise was in relation to the work or services provided (3).

1) Work or services under this law is quite a broad concept. Work is a fairly straight-forward concept, for example mowing lawns, tailing lambs, or helping put up a fence. Services is a lot broader and the courts have

taken a wide approach, in some circumstances considering friendship to amount to a service.

However, there are limits to this, especially in a family context. Taking time off work to look after and care for elderly relations or living with family and providing mutual support and sharing domestic duties are situations which would generally be considered par for the course.

The more likely claims would come from non-family who have helped the deceased during their lifetime.

2) The second part in establishing a claim is showing that there was a promise made. Only promises about looking after someone once the person promising is gone count if someone said they would buy you a box of beers the next weekend that doesnt count.

Improving economic outlook continuesIts hard to believe that were less than six weeks out from Christmas, although given the mixed bag of weather in the last few days it certainly doesnt feel like November.

Last year, the mere thought of the winding back of the United States Federal Reserves purchases of treasuries and mortgage-backed securities created concern and speculation that higher interest rates might derail fragile economic growth.

Now that the end of the process is in sight, there seems less concern with the weak European economies, higher US dollar and weak commodity prices providing sufficient disinflationary pressure to dampen any interest rate risks. Investors were also reassured when, despite US third quarter growth again exceeding expectations, the Federal Reserve stated that it was in no rush to raise rates.European Markets

Even in the Euro zone, which remains dogged by growth concerns, leading indicators have improved over the quarter to October 31.

Russian sanctions, weaker Chinese growth and the banking sector stress tests, have all contributed to stagnation in European growth.

Germanys slowdown during the third quarter was

also a major contributor to a at last quarter growth rate.

However, industrial production picked up in October and with both the European and Japanese Central Banks launching more aggressive monetary policy measures, the weakening Euro and Yen should bolster growth prospects and help realign global imbalances.Global Equity Markets

Global equity markets were mixed over the quarter to 31 October, with European and Asian equities declining in local currency terms. Japanese equities posted good gains and should bene t following the Japanese Government Pension Fund being directed to increase its asset allocation to local equities.

US equities were the standout performer, helped by another positive reporting season. Currency movements also enhanced returns from all major international equity markets as the Reserve Bank of New Zealand (RBNZ) actively intervened to lower the NZ dollar. US equities provided the best returns given the start of the secular recovery in the US dollar.Australian and New Zealand Equity Markets

The New Zealand equity market returns over the quarter to October 31 have been strong, with the NZX50 up 4.3%.

Electricity stocks drove most of the New Zealand equity market return post the election result, as this ended concerns that a single buyer model would be introduced. Attractive yields relative to cash have

also contributed to the positive movements as investors look for alternative options to generate income.

In Australia positive return contributions were limited, with healthcare and telecoms the main sectors to provide any material advance. Banks came under pressure with expectations increasing that authorities would again increase capital requirements, while weak commodity prices pressured the resource sector.Fixed Interest Market

Despite improving US growth, long-term interest rates continue to hover around their 12 month lows, with subdued global in ation being the cause. This has resulted in the RBNZ softening its stance on future Of cial Cash Rate rises, with no increases now expected before late 2015.

Meanwhile, New Zealands longer term rates look set to be constrained by signi cant maturities in the first half of 2015 and a likelihood of minimal new bond issuance.

For further details contact Andrew Wyllie, an Authorised Financial Adviser with Forsyth Barr in Christchurch. He can be contacted regarding portfolio management, fixed interest, or share investments on 0800 367 227 or andrew.wyllie@forsythbarr.co.nz. To nd out more about Forsyth Barr visit www.forsythbarr.co.nz. This column is general in nature and should not be regarded as personalised investment advice. Disclosure Statements are available on request and free of charge.

Money Talkwith Andrew Wyllie

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by Trevor Walton

The Wood Council of New Zealand says tariffs will continue to restrict trade in processed wood products despite the signing of a Free Trade Agreement with SouthKorea.

The Wood Council or Woodco is the pan-industry body representing the interests of all parts of the forest and wood processing chain.

Council chair Bill McCallum said they know how hard government negotiators have strived to achieve a high quality deal with Korea.

For the forest industry the job is far from nished, but the proposed agreement is a good start, he said. New Zealand exported NZ$503 million of forestry products to Korea in the year ending June 2014. Under the FTA more than 99 per cent of New Zealands current export wood product lines will be duty-free within 10 years.

But 10 years is a long time in business and while a 10 per cent tariff may not sound signi cant, on price-sensitive products it can be enough to eliminate trade. This is compounded by the fact that some other wood exporting countries already enjoy tariff-free entry into Korea.

Mr McCallum said the forestry and wood processing industries on a business as

usual basis will deliver $6 billion a year in export earnings to New Zealand by 2022.

The vision in the Woodco Strategic Action Plan is to double this to $12 billion over the same period, largely by converting a higher proportion of logs to higher value products for sale locally and on world markets.

But we cant do this alone. Only the government can negotiate the tariff-free access we need to compete. Tariffs are generally very low on logs and escalate as value is added effectively shutting our processed wood products out of many markets.

He said free trade agreements between New Zealand and other countries have tended to headline the bene ts for dairy, meat and horticultural exports.

We are currently the countrys third largest export industry, but the industrys common objective is to substantially increase the proportion of wood products that add value on-shore.

Think of the potential for employment, regional

development and national wealth creation that would result from processing more logs into value-added products. We urge

our trade negotiators to work hard to achieve elimination of tariffs on all processed wood products.

Wood Council chair Bill McCallum

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Bill and Geraldine Hassall who have been farming at The Glen in Hawarden, North Canterbury since 1968, have the only exclusively full French Charolais herd in New Zealand.

They made the decision early on to specialise in Charolais cattle which are a beef breed originating in Charolles, in central France and thought to be one of the oldest cattle breeds perhaps dating as far back as 878 AD.

Of cially the breed is traced back to the 16th and 17th centuries.

Improvement through selective breeding commenced early in the nineteenth century, with the rst Charolais semen being imported to New Zealand from Britain in 1965.

The Charolais breed tends to be large muscled, with bulls weighing up to 1,100 kilograms and cows up to 900 kilograms. From 1969 till 1981 sixty-one

bulls and three hundred and two females were imported from England to New Zealand.

Geraldine says the majority of purebred cattle have been bred by grading up using a French Charolais sire over a base Angus, Friesian or Hereford cow through five generations.

In this way a New Zealand Charolais has been developed, still with the Charolais growth rate and muscle, but better

suited to the beef production systems used in New Zealand, Geraldine said.

In 1985 the Hassalls started The Glen Charolais Beef Cattle Stud.

With the purchase of a bull Brook eld Umpire and an in-calf cow with a heifer at foot The Glen Charolais Stud was registered, Geraldine said.

The Hassalls were attracted to the breed because of its longevity, better bone structure and thicker coats to withstand the cold which they say all helps to produce better beef. They decided on a Full French Charolais.

A LITTLE BIT FRENCHBY BELINDA CULLEN-REID

I N N E W Z E A L A N D

The idea of French cows may sound exotic to a lay-person, but to one North Canterbury couple they have become a way of life that has not only provided them with a source of income, but has given them opportunities to travel around the world as well as hosting travellers in their own home.

A farmer checks on his herd, during a visit to see Charolais in Brazil

9November 2014

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Full French is pure original Charolais with no other breeding added to dilute the great features. The Full French are horned which may be seen as a disadvantage but the added bone structure of the horned cattle outweighs the necessity to debud the calves.

The Glen Charolais is the only Full French cattle stud in New Zealand.

It is our preferred choice of Charolais because of better coat, hardiness, purer blood lines, temperament and bone structure. They have a longer coat and cope well with our South Island conditions.

Advancements in farming practices over the years have resulted in improvements in stock production.

Weve seen improved pastures with new grass species and the use of AI (Arti cial Insemination) within the herd to continually improve genetics. We now have winter mating of rst calving heifers for autumn born calves.

Other technological changes to the Hassalls farming practices have happened away from the paddock or stock yards. Several years ago the couple set up a website promoting their stud and the breed in general, including a blog which gives an update on how each season is going.

We started the website because of the international interest in our Stud. We felt it was opportune to have our own

website run in conjunction with the New Zealand Charolais Cattle Societys official website, Geraldine said.

The website has bought them new business and contacts in the cattle industry from all over the world and the couple have enjoyed the worldwide travel that has resulted.

Geraldine who was on the New Zealand Charolais Cattle Society executive for 18 year, six of which she was President, represented New Zealand at the 34th Charolais World Congress in Brazil in 2004.

Whilst in Brazil we were approached by a Canadian delegate to travel to Canada to see rst-hand the preparations that were already under way there for the next World Congress to be held in 2006. We travelled widely within

Manitoba and Saskatchewan, visiting many Charolais studs there, and then onto Edmonton where along with another couple of overseas visitors we judged the inaugural Sir-vivor best in show class.

In 2006 the couple travelled to France to see the birth place of their breed.

We took the opportunity to go to the home of Charolais Optimal a collection centre for bull semen that is exported world-wide. There we viewed several bulls that had progeny in New Zealand.

While we were in France we spoke at an Agricultural College and as a result we have over the years hosted many students from France as part of their training includes overseas farming experience. Most were delightful visitors to

Geraldine and Bill Hassall of Hawarden have the only fully French Charolais cattle stud in New Zealand

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Shows celebratefarming successes

Agricultural shows in Canterbury are proving to be as popular for this generation as they were for their grandparents, with over 100,000 people attending this months Canterbury A&P show held at the Canterbury Agricultural Park in Christchurch.

by Belinda Cullen-Reid

As Canterbury bathes in the dairy industry boom farmers and farming businesses are ocking to events like A&P shows to talk business and celebrate the best about being from the country.

But not all rural shows around New Zealand are seeing such gate sale successes. In fact President of the Royal A&P Society of New Zealand, John Grigg of Hororata says rural shows are only as strong as the farming economy of each district.

There are strong numbers going to shows in Canterbury where dairying has been a big in uence, Mr Grigg said. In

other areas of New Zealand where farming isnt going so well, their shows arent doing as well.

While the Canterbury A&P Show was the shining light of agricultural and pastoral shows, Mr Grigg said the importance of the smaller country shows cant be underestimated saying the bigger shows, such as Canterbury, are reliant on a strong backbone of small community shows.

The country shows feed into Canterbury, he said.

The traditional reasons for people to support agricultural and pastoral shows remain, such

as the opportunity to show prize stock or personal skills, touting your business, networking with others in the industry, and forming and strengthening social ties. But there are new facets to the modern day show.

Mr Grigg says with more lifestyle block owners taking on small scale farming there is a new group of rural show devotees who are interested in both exhibiting at shows and gaining knowledge from others.

Stock competitions have changed also with new technologies in agricultural science resulting in animals being judged not just on how they present and their pedigree, but genetic information also.

The introduction of more user friendly areas for city people to experience rural life has also been necessary. Mr Grigg said the introduction of

animal nurseries, and old steam engines and vintage machinery were examples of how shows were evolving.

Thats what were trying to do. Provide new things and the latest technology as well

as looking back at the old. Its about the past, the present and the future.

Weve got to make shows interesting for rural people and for those from towns and the city.

Desray Geursen (left) and Linda Macmillan from Farm to Farm Tours exhibit their agricultural and agribusiness tours at the Canterbury A&P Show. Based in North

Canterbury the company organises rural tours within New Zealand and around the world. Desray and Linda said the show is an important place to gain new contacts and connect with existing ones

11November 2014

The Taege Engineering crew had a prosperous three days at the show with Trevor Goodeve saying he was happy with how the show had gone for the company. Mr Goodeve said there had been huge interest in the companys agricultural machinery with sales equal, if not better than other years. Talking business in the Teage tent were, from left: Trevor Goodeve, Graham Gibson, Bill Woods, Daz Greenwood and Heath Cullen-Reid

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Taking out the title of best young auctioneer in the country was Cam Bray from Selwyn. Cam works for PGG Wrightson in Darfi eld. The 26-year-old won a trip to the Sydney Royal Easter Show for his efforts.

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Getting Ruataniwha over the lineSome of you may have read in other publications about the meeting IrrigationNZ and Federated Farmers jointly hosted in the Hawkes Bay earlier this month.

Around 300 local farmers and growers turned up to hear Canterbury and North Otago irrigators speak about their personal experiences of irrigation development.

They spoke about not only how their individual farming operations have pro ted but how their wider communities have bene tted as new jobs have been created, school rolls have increased as families move into rural areas to work on farms, the spin-off for local service and supply industries and the increased con dence and productivity for farmers generally that comes with reliable water.

IrrigationNZ believes there is now the momentum in the region to see the Ruataniwha Water Storage Project proceed. But we dont want to be complacent and this is where Canterbury irrigators and farmers can assist.

Theres no denying the payback that long-established irrigation infrastructure has

provided Canterbury. Our regions wealth, diversity of land use and productive enterprise, owes much to the availability of water and more recently to efforts to store it, improve the reliability of supply, and ensure sustainable use so its available for future generations.

In other parts of the country, farmers seeking irrigation water have not been so fortunate.

The meeting earlier this month was not about the merits of the Ruataniwha Water Storage Scheme, it was an information exercise to allow local farmers and growers to concentrate on the economic and social bene ts that more reliable irrigation infrastructure, aided by water storage, delivers. At the same time, Southern irrigators were on hand to talk the locals through their own operations and nancials to show that irrigation, even when highly priced, can stack up.

You may not think the Hawkes Bay situation concerns you. But it does. Irrigating

Hawkes Bay farmers at a recent IrrigationNZ workshop learning irrigation skills. Canterbury irrigators are being asked to support their northern cousins to get the Ruataniwha Water Storage Scheme over the line

farmers need to present a united front and back other farming communities that need help to get irrigation projects over the line.

Theres a strong argument that areas which bene tted from early irrigation development have a responsibility to promote the irrigation story to the rest of the community. That means not just telling your local council, business suppliers and electorate MP what irrigation means for your farming operation and district, but what on a national scale investment in irrigation development means for our nation, through more reliable, efficient and sustainable production.

IrrigationNZ is calling on farmers in this area, and other regions lucky enough to have established irrigation infrastructure, to stand up and be counted.

The main way you can do this is by contacting farming friends, rural sector contacts and industry organisations in the

Hawkes Bay and telling them what irrigation has done for you. Irrigation provides surety of income, enables growers to lock in contracts and diversify land use. In many cases, access to water has been the impetus for succession planning allowing farmers to break away from the store stock trade, beat droughts and make a consistent return on capital for their generation and the next.

Hawkes Bay growers and farmers will need to commit to the Ruataniwha Water Storage Scheme soon because the opportunity for reliable

water wont arise again and the projects backers need assurances of uptake before Christmas. Of course, theres debate about the cost sharing model, the implications of land use change and what nutrient management schemes will be required, but the bigger picture is the opportunity is here now and we dont want to lose it.

Irrigating farmers in Canterbury can help by providing your perspective on how you make the numbers work when irrigating and why irrigation stacks up for you nancially.

If you dont have any contacts in the Hawkes Bay that you can directly approach, IrrigationNZ would be happy to put you onto irrigators who have approached us with questions, wanting real life examples and case studies that tackle the issues they need addressed. Theres no stronger message than one farmer talking to another so please let us know if you can help in any way.

It really is now or never for Ruataniwha and both IrrigationNZ and Federated Farmers believe the economics can be made to work.

The Know to make it Flow Andrew Curtis, Irrigation New Zealand CEO

13November 2014WATER

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Irrigation Issues Dr Tony DaveronSomething new

For Canterbury farmers irrigation is mostly old hat but not for the farmers I am working for in the Ruataniwha Basin area.

For many the decision to irrigate and buy water from the Ruataniwha Water Storage Scheme is like the decision farmers had to make in 1969 for the Lower Waitaki Irrigation Scheme.

No ferry trip while writing an article this time, but another hearing, and still late (both due date and night-time) for the editor. Ruataniwha has little in common with the hearing which is all to do with land irrigation for Te Anau sewage waste water, but one hell of a twilight view to accompany me while I write.

Back to Ruataniwha, in my mind the Canterbury of the North Island typically shallow silt loam soils over gravel (better than Lismore silt loam), hot and windy with the norwesters screaming down off the Ruahines. And like Canterbury, groundwater has reached the point where it cannot sustain much more abstraction if reliability is to be maintained. Water storage has been proposed with a dam (a real dam) on a tributary of the Waipawa River.

So just to put you in the picture, Ruataniwha is in central Hawkes Bay inland from Waipawa, Takapau and Waipukurau, with a couple of notable little towns (Tikokino and Ongaonga). Nothing much in Tiko (a pub, hall and a few

houses) or Onga (pub again, hall again, a store, a church, and quite a few more houses laid out in an historically well-planned but never populated township like Barhill). Waipawa and Waipuk area bit like Rakaia and Ashburton about 2530 years or more ago. Snow on the mountains in the winter, wicked frosts, mixture of agriculture, expanding dairy farming, excellent arable farmers you know just like a mini Canterbury.

What about the scheme then. Interestingly the Ruataniwha Water Supply Scheme has been driven to large extent by the Hawkes Bay Regional Council. Very different to more recent irrigation schemes in Canterbury that have been driven rstly by innovative and entrepreneurial farmers, and the by Irrigation companies.

In RWSS farmers will buy their water from the company and will not be shareholders as they are in schemes like Central Plains Water, South Rangitata and the like. RWSS will be a water supply business that supplies water to users irrigating farms, towns, industry and others. RWSS will own and operate the storage and distribution system/infrastructure.

The users will have long-term take or pay contracts for a volume of water.

In terms of the facts and gures: One large 83m high dam on

the upper Makaroro River Store about 96Mm of water Will generate ~6.5MW of

power With primary distribution

through 16 kilometres of canal and 17km of pipes

supplied to the rst farmers in September 1974 but the scheme was not nally completed till March 1982.

The scheme originally irrigated 16,000 hectares and 170 farms not too dissimilar to RWSS.

The 156 farmers on the Lower Waitaki Plains who voted the go-ahead for the Government to construct the $2.25 million (though the nal cost was nearly $9 million) irrigation scheme were no different to the Ruataniwha farmers now needing to commit to the scheme.

In many ways the circumstances and mindsets are the same the Ruataniwha farmers (like the Waitaki farmers) have learned to, and do, farm for drought. The mind shift is to realise water is about production and not greening the landscape. Unlike the Canterbury market which exists now, the understanding of annual volume required and the importance of reliability is less well understood and appreciated.

Guess they (RWSS farmers) are lucky we (Canterbury) have gone before.

With secondary distribution of approximately 200km in pipe

Distribute water to potentially irrigate 26,00030,000ha although it has been estimated there is about 80,000ha of irrigable land

Will deliver water under pressure of 35m head across the piped network, and

With a system capacity of 0.486L/s/ha or 4.2mm/day (pretty similar to Canterbury schemes)How about the bottom line

then what will it cost to buy the water? Contractually irrigators and other users will: Pay $0.23/m plus an

additional $0.03 cents for the pressurised water

Have the price adjusted by a CPI in ator

Be contracted for 35 year, and

Like Canterbury be required to operate their enterprise with a Farm Environmental Management PlanWhat has all this got to

do with the Lower Waitaki Irrigation Scheme?

Back in 1962 the rst serious attempt to promote irrigation was initiated and nally by November 1969 a scheme was ready to be constructed. The scheme construction began in November 1970 and water

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Weather Watch by Tony Trewinnard

This pattern was due to persistent high pressure systems in the Tasman Sea which were slow to move onto or over New Zealand. Pressures were lower than usual to the east of New Zealand, which helped maintain southwesterly air ow over the region.

Like September, rainfall was below normal, with totals in most areas between 40 and 70% of normal. The number of days with rain was also well below normal. Through the month soils were noticeably drying out, exacerbated by regular periods of the usual spring northwesterly winds.

Temperatures were a little cooler than usual, by about -0.5deg, with night-time minimum temperatures noticeably cold, around -1.0 to -.15 deg below normal with more frosts than usual, while day-time temperatures were a little milder. Sunshine hours were above normal by 10-30%.

In the tropical Pacific a confused picture remains for another month. Many oceanic indicators are continuing to point towards weak El Nino conditions, with regions of warmer than usual water surfacing near the equator.

However, many of the usual trends we expect to see in a typical El Nino event are still not occurring, and this despite nearly eight months now of trying. Many atmospheric indicators are failing to show any signi cant El Nino development. The SOI has trended slightly negative through October, indicating weak El Nino conditions, but fails to indicate a signi cant El Nino development.

The latest computer models continue to suggest a weak El Nino event will remain through the summer months but some suggest the El Nino has peaked at low levels and will decay steadily throughout the summer

period. There are still some suggestions of a signi cant La Nina event developing early next year.

As we are currently in a phase in the Pacific where La Nina events are expected to be more dominant, we too expect this El Nino to be in imminent decline, and likely to be replaced early next year by potentially strong La Nina conditions.

As the El Nino peaks and slowly decays we generally see increased westerly or southwesterly airflow over New Zealand and this spring has shown that pattern so far. We expect this to continue into early summer.

We expect to see pressures generally lower than usual over the seas east of New Zealand, and generally higher than usual in the Tasman Sea and Southern Ocean, resulting in increasing southwesterly air ow over New Zealand through December.

This effect should reduce in January with more anticyclones developing over or near New Zealand.

However, by later in the summer season more easterly air ows may be developing with the possibility of low pressure systems moving near and around New Zealand by about March.

For December we expect to see temperatures still a little cooler than normal in Canterbury with frequent periods of southwesterly air ow. Rainfall is likely to be below normal. Sunshine hours may well be above normal.

For January and February we expect to see sunshine hours continue above normal, with rainfall likely lower than normal, and temperatures near to or a little above normal. By March we may start to see increasing rainfall and cloudiness with higher humidity levels.

Forecast Canterbury

Rainfall Temp Sunshine Airflow

Dec Near normal

Cooler than normal

Sunnier than normal

More SW airflows

Jan Drier than normal

A little milder than normal

Sunnier than normal

More anti-cyclones

Feb Drier than normal

A little milder than normal

Sunnier than normal

More anti-cyclones

Mar

A little wetter than normal

A little milder than normal

Cloudier than normal

More easterly airflows

October was a dry and sunny month for Canterbury with persistent southwesterly air ows continuing on from September and bringing few rainy periods and increasing sunshine hours. Frosts were more frequent and more severe than usual.

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Market coloured with cautionA cautionary tone pervades the log export segment with most commentators suggesting November settlements in China are coming off US$3 to $4 per cubic metre. Meanwhile the New Zealand domestic market oozes business as usual with, if anything, a slightly rming tone in demand and prices.

Domestic log sales are generally in a supply demand balance but the overwhelming commentary from the locals centres on sales being at an okay level, but certainly not record beating. Most sawmillers spoken to recently have indicated sales are better than at the same time last year but lumber from outside the region is hitting the Christchurch market in volume. This appears to be keeping a lid on any signi cant price movements.

In our key export market of China, the big issue at present is credit. While many provincial governments have announced loosening housing lending policies, many traders and sawmills are still reeling from the recent 30% price drop in log prices.

Despite what appears to be a huge market, it is important to realise much of the softwood log trade in China is underwritten by very few companies. These are often very large wholly or majority government owned companies who operate within very strict pro t and margin parameters. They are also the ones who can issue Letters of Credit to traders and factory owners.

Many of these companies lost huge money recently, one company reportedly in excess of US$1 billion. Sawmill owners (often called factories in China) will typically be required to pay a 20 to 25% deposit to open an LC. Large losses by both LC opener and sawmill owner occur when buyers walk away from a sale. When the market drops

suddenly, as it did recently, a buyer will walk away from the deposit rather than lose even more on the log order, leaving the LC issuer holding the baby.

Recently two substantial players in the LC space announced an exit from the log trade quoting substantial losses, price volatility and uncertainty. This has sent shivers down the spine of the market with some vessels leaving New Zealand known not to have LCs con rmed at time of sailing. All of this makes for a jittery trade, high levels of uncertainty and all players scrambling for more margin.

Consumption across the China Eastern Seaboard has remained at about 55,000 cubic metres per day (seven days per

week), off by about 10,000 per day compared to the same time last year. However, inventory levels are falling stubbornly, now just on 3.7 million cubic metres, representing two months supply.

Log supply from the United States and Canada is falling dramatically, indeed by less than half compared to October 2013. For the most part, everyone expects the log inventory level to keep falling but all are eying the New Zealand and Australia supply side.

As indicated last month we saw CIF settlements in China stabilise at around the US$132$134 mark with a suggestion we could see US$2

or $3 per cubic metre declines in November settlements. Indeed this prophecy is being realised at time of writing with most suggesting November settlements will be US$128$130.

Price negotiations in our other key markets of India and Korea are pretty much following the China lead.

India is continuing to show great promise for much larger volumes ahead and prices at wharf gate generally just slightly ahead of China at present. New ports are being reviewed for the log trade in India with congestion and discharging cargo amongst some of the biggest challenges. Certainly

the emails from potential India buyers are a veritable ood, suggesting continued and new interest in developing this trade further.

Shipping costs are softening ever so slightly and it is also great to see some downward movement in the NZ$ against the US$.

Therefore overall we would not expect to see great change in wharf gate prices this month and December looks like more of the same.

Thus, it has never been more timely to remember, the only way forward for climate, country and the planet is to get out there and plant more trees.

Forestry Market Report Allan Laurie MNZIF, Laurie Forestry Ltd

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