WAIRARAPA FARMING FOR PROFIT NEWSLETTER | 28 JULY 2016
FARMING FOR PROFIT
MARCH 2017 — TOPICS —
IntelliSpread fertiliser
diagnostic and spreading
technology
Forage Systems and
Raphanobrassica
Heli-assisted manuka
honey production
WAIRARAPA
SMART FARMING
The venue was the 2550ha
(1760ha effective) Patitapu
Station at Alfredton,
owned by the McKenzie
family. This is a wellrun business that
incorporates some
cutting edge
technology and
innovative practices,
four of which were
highlighted at the
field day.
Carbon trading options
to augment production
forestry and manuka
production
Facilitator
Sully Alsop, BakerAg
Ph 027 4511 407
[email protected]
Extension Manager
Lauren Cameron
Ph 027 431 7626
[email protected]
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WAIRARAPA FARMING FOR PROFIT NEWSLETTER | 28 JULY 2016
IntelliSpread fertiliser programme
The science behind this technology
was outlined in AgLetter 28-5-16
(Ravensdown PGP Fertiliser Project).
High definition aerial scanning is
used to determine the fertility status
across a property. This information
is used to compile a precision
map, which is then used by a plane
fitted with specialist technology
to differentially apply fertiliser
with an accuracy that hasn’t been
possible before. This technology is
still undergoing “ground proofing”
to calibrate the aerial scanning data
with actual soil fertility status.
For the last two years, Patitapu has
been one of Ravensdown’s trial
properties, where this technology
has been developed. The McKenzies
have already seen significant
benefit from having their farm
comprehensively mapped, and from
using the differential application
technology.
Some initial analysis is suggesting that differential
application over blanket (one-rate) application, can yield
savings averaging $43/ha, with a range from $21-$79/
ha. This will depend on the variability of fertility patterns
across the property, and on the amount of waste area
and sensitive areas that can be avoided.
Initial indications are that is might cost $500 to have
precision map prepared using the AirScan technology,
and additional flying costs of $4-$5/ha (+5%),
depending on the product and rate being applied.
Forage systems and Raphanobrassica
Old grass goes into rape in the spring. This crop allows
weeds to be cleaned up with targeted herbicide. Italian
may be sown into this crop for additional winter feed.
Turnips follow for the next summer, which provide the
horsepower for lamb finishing, and/or building up light
ewes. Red and white clovers are then established in the
autumn, providing a 2-3+ year dedicated lamb-finishing
forage.
Patitapu produces around 15,000 lambs a year, but
has only 7% of its effective area cultivatable. While the
property has been able to get lambs up to a forwardstore stage (35 kg+) on hill country relatively easily, it
has had limited capacity to finish lambs.
More recently the McKenzies have been developing
forage systems based around a rape, turnip and red
clover rotation. This has given the business greater
options to either “warehouse” store lambs, to avoid
selling into weak periods of the store market, or finish.
The McKenzies prefer the clovers over plantain/chicory
options because they are “one-dimensional” in terms
of management, easier to control weeds in, and deliver
consistently high lamb LWG results.
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WAIRARAPA FARMING FOR PROFIT NEWSLETTER | 28 JULY 2016
Raphanobrassica
This year the McKenzies were fortunate to
have a limited amount of Raphanobrassica
to trial in their system. This is a new kale/
radish hybrid from PGG Seeds which is
showing some useful attributes. In trials,
it has yielded 14% better than Titan rape,
with an ME value similar to other rapes,
but it appears to be up to 1/3 more
efficient in water-use efficiency (i.e. can
produce 1/3 more DM for the same water
availability).
It’s a bit less susceptible to clubroot,
it matures earlier than other rapes and
is supposed to be more aphid tolerant.
Observations from those that have used it
this year are that there’s a definite grazing
preference for the Raphano, and that
its recovery and regrowth post-grazing
is superior. But you don’t get these
advantages for free. The Raphanobrassica
seed costs about $200/ha more than
other rapes or kales.
Heli-assisted manuka honey production
The McKenzies have been harvesting manuka honey off their property for the last three seasons, in
a partnership with the True Honey Company. It has become a significant part of their business. The
following are key points made by Doug McKenzie and Laurence Burkin of True Honey
When getting into honey production, ask friends and
neighbours about who they have been dealing with in
their honey business and what problems and pitfalls to
look out for. Independent advisors are also available in
some areas.
The beekeeper will be evaluating the quality of manuka
on the property and likely yield potential, the ease or
otherwise of access, and hive site logistics and relative
“security” the harvest in that area (e.g. exclusive rights
or shared rights).
Start with a short-term contract with an operator (one
year). This gives a chance to explore the quality and
likely quantities of honey on the property, and for the
two parties to gain an understanding of each other.
Once the “rules of engagement” have been established,
the relationship between land owner and beekeeper
might graduate into a higher % of the production value,
or in some cases, the land owner may want to own their
own hives and work at a 50/50 JV level. This is how the
business has evolved on Patitapu.
Initial short-term contracts may be either a fixed price
per hive (e.g. $100-$200) or on a percentage of the hive
production value (15-20%).
During this initial stage, the land owner should be
asking a lot of questions around access requirements,
hive placement, timing, how the quantity of production
is measured and reported, how the quality of the honey
is measured and reported, and what the terms of
payment are.
Different beekeepers appear to have different methods
of establishing the honey value. It’s confusing. The
UMF (unique manuka factor) value is still the most
common value used. This measures the concentration
of key compounds in the honey that confer its
unique medicinal value. These compounds include
Methylglyoxal (MGO), Hydroxymethylfurfural and
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WAIRARAPA FARMING FOR PROFIT NEWSLETTER | 28 JULY 2016
Leptosperin. The MGO in manuka honey appears
to confer the non-peroxide antimicrobial activity
(NPA) that makes it unique. The MGO levels tend to
increase post-harvest, but there is a compound called
dihydroxyacetone (DHA) that is a precursor to MGO,
that some beekeepers use as a predictor of the MGO
and UMF levels. So you have to get your head around
how the quality of your honey is being valued.
In Patitapu’s case, sample hives have scales that via
satellite and the internet feed hive weight increase
(or decrease) back daily. The helicopters placing and
removing the hives have load cells on them to verify
the honey yield. The quality is measured on DHA/MGO
content and the product is pooled with other like product,
and tendered for sale in a transparent sales process,
where advice on the sale is provided by True Honey.
The McKenzies also make a point of comparing notes
with fellow honey producers as to relative yields and
prices being achieved in that season.
There are a number of ways that land owners can
cooperate with beekeepers to get a better result for
all. Good access is critical to beekeepers. Information
to the bee keepers on flowering timing and intensity.
Often there’s only a six week window of flowering time
for the manuka, and the optimum conditions may only
exist for two of those weeks. So, beekeepers need
to be able to get hives in and out of a site easily, and
without stressing the bees (heat stress is a major is
issue). So well-formed metalled tracks and the odd sign
post can go a long way. The placement of hives is also
important. Warm, sheltered sites in good proximity to
manuka nectar source will produce better results than
windy, cold sites where bees have a distance to travel.
Reducing or eliminating alternative nectar sources is
another management tool, i.e. if hives are placed on the
edge of bush, in contact with clover pasture, make sure
the clover is grazed off before hive placement. Placing
hives away from cabbage trees, kanuka and other
food sources also reduces the risk of the honey being
contaminated by other nectar sources. Subtle changes
in grazing management also help by nipping off clover
flower at critical times.
There’s another leg of the business opening up around
providing over-wintering sites for hives. Preferred sites
have warm aspects and natural sources of food (e.g.
willow trees). Bee keepers will pay a wintering fee for
well-appointed sites.
The helicopter placement and extraction methods used
by True Honey suit Patitapu because they don’t want to
be bothered with trucks coming and going (and getting
stuck/lost/gates, etc) through the station’s busiest
management period in December and January.
The bottom line is that manuka honey is becoming
a significant revenue source on many hill country
properties, i.e. 100 ha of bush with 100 hives yielding 30
kg/ha of honey at $40/kg @ 30% share = $36,000 p.a.
or $360/ha. This is probably more net income/ha than
the EFS that the farm has produced on clear country
running sheep & cattle.
As the bonanza unfolds, the industry has something of a
“wild west” reputation. It’s very much a “buyer beware”
story for land owners. As with the livestock industry,
greater transparency and sharing of information around
operational reputation and pricing among the market
players would go a long way in building the confidence
of those who want to participate.
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WAIRARAPA FARMING FOR PROFIT NEWSLETTER | 28 JULY 2016
Forestry, Manuka and Carbon
Stu Orme, managing director of Woodnet
(Masterton), outlined the factors affecting viability
of production forestry on hill country, the effects of
proposed ETS legislation on carbon accounting, and
potential this has to improve the cash returns from
both exotic and native forests.
•
•
Log prices are extremely volatile. Since January
2015, the net receipts for a given woodlot
(Pruned stand, 25 years old. Approx. 130 km from
the port) may have varied from $10,900/ha to
$28,500/ha.
Depending on the returns at the time, the amount
spent on the management and marketing of the
logs can be a considerable percentage of what
might have been part the owners returns, so you
need to make sure that your marketing agent is
doing a really good job for you.
•
Financial returns to the given woodlot above,
expressed as an IRR, have been in the range:
3–9%. The current ETS legislation, where the first
ten years of growth (if planted after 2008) that
doesn’t have to be repaid upon harvest, has the
potential to enhance forestry IRR returns by an
additional 6–7%.
•
Proposed new ETS carbon accounting rules that
could allow up to the first twenty years of carbon
sequestered to be benefited from could lift this
return substantially.
•
Manuka plantations that qualify as carbon forests
(post 1989), could also see their annual returns
enhanced by between $80 and $300/ha annually
at current carbon prices. (at an NZU price of $17/t).
Feedback?
If you have any feedback about our Farming for Profit
programme, or any other thoughts about what you
would like to see at future events then have a chat
to one of our committee members, they would love
to hear from you. Our committee includes: Richard
Tosswill (Chairperson), Sully Alsop (Facilitator), Delwyn
Pringle (BakerAg event organiser), Lauren Cameron
(B+LNZ Extension Manager), George Ritchie, Ian
Evans, Ben Johnston, Sam Johnston, Lynley Wyeth,
Lucy Thorneycroft
Our next field day is looking like
it will be held on 1 August at the
Carterton Event Centre.
Facilitator
Extension Manager
Sully Alsop, BakerAg
Ph 027 4511 407
Lauren Cameron
Ph 027 431 7626
[email protected]
[email protected]
0800 BEEFLAMB (0800 233 352) | WWW.BEEFLAMBNZ.COM | BY FARMERS. FOR FARMERS
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