sept 2019 general managers report by steve lee

T H E N U T S H E L L . M P C ’ S N E W S L E T T E R F O R M A C A D A M I A G R O W E R S

The harvest is well and truly coming towards completion and the focus is now moving to the 2020 crop. Most orchards have seen a reduction in crop from the 2018 season, this has been reflected in the recent AMS revision of the Australian crop to 46,000t (10%mc), down from the 52,900t crop produced in 2018. The tough growing conditions have also contributed to lower kernel recovery this season. The combination of the smaller crop and lower kernel recovery means that every nut will count this year for growers and processors.

The nut drop started a little later than normal, but it was very heavy and condensed once underway. With much of the crop on the orchard floor during May and early June, we were extremely fortunate to have good weather for harvest. The soaking rain at the end of June was quite timely, replenishing soil moisture levels and setting up orchards for flowering, which is well underway.

This will hopefully result in a solid nut set heading into the new year.

Whilst the 2019 sound kernel recovery is down, unsound kernel is also running at very low levels. No doubt assisted by the dry weather during growing resulting in low levels of pest and disease pressure and few harvest delays. This is making for quick and efficient processing and allowing us to ship early to customers. An early finish to processing will allow us to start our cracking room upgrades which will see significantly improved processing capacity for the 2020 season and beyond.

Globally, the crop in other major producing countries is also down on early estimates. This shortage has resulted in limited product availability and continued strong demand for MPC’s products. A more comprehensive overview is in the MMI market report later in this newsletter.

Free Electricity

Electricity generation from our Solar system has been one of the benefits of the recent fine weather. Since commissioning, we’ve generated over 360MW and are on track with the projects forecast power generation and savings!

S e p t 2 0 1 9

In this issue General Managers Report 1 Pest and Disease Management Field Day Report 5

MPC AGM Report 2 Items for Sale 15

Marketing Report 5

General Managers Report by Steve Lee

Dear Growers,

Pictured: An aerial view of the MPC factory with the 600KW solar system installed

T H E N U T S H E L L . M P C ’ S N E W S L E T T E R F O R M A C A D A M I A G R O W E R S 2

Receivals

The team at receivals put in another big effort this year and set a record, with 1,060t at 10% mc delivered in a single week (over 1,300t delivered weight). Having the new drying and cold storage building completed in time for this years crop assisted this process. The additional 450t of drying bins were invaluable in ensuring the crop was dried under carefully controlled conditions. As MPC has demonstrated over many years, nut quality is made in the paddock, we can only attempt to preserve it from then. The additional drying infrastructure is an important part of this preservation process.

Annual General Meeting

The MPC Annual General Meeting was held on the 23rd August, there were approximately 50 shareholders in attendance who were given an update on MPC’s performance, the achievement and strategic direction of the MPC/PGM/MMI group and the broader macadamia industry. A separate report on the AGM is included in this newsletter.

Dividend

In August, a fully franked dividend of $0.80 per share was paid to shareholders of ordinary shares. Since 2010,

MPC has paid dividends on ordinary shares totaling $2.85 fully franked which is a reward for those growers who have invested in MPC and goes beyond the benefit of our competitive NIS offer.

Staff Milestone

A business is only as good as the people that it employs and I’m pleased to say that MPC has a dedicated team of hard working staff, none more so than Jane Meeve who this year reached 30 years of service at MPC. Jane, in the critical role of Financial Controller, has seen the highs and lows of the industry and the evolution of MPC as a business. With her strong financial skills, Jane has helped grow the company to where it is today. From all MPC

staff, shareholders and growers (past and present) we congratulate you on this remarkable achievement and appreciate your dedication and loyalty.

MPC AGM Report

On Friday 23rd August 2019 the MPC annual general meeting was held at the Ballina RSL, with approx. 50 shareholders attending the meeting. Chairman, Chris Ford, provided the following address:

Wow what a year!

A record financial result, a record price, a record dividend.

The company has grown in size significantly with the acquisition of the 67% shareholding in PGM that it did not already own.

To top all that, we have also diversified the business with the installation of 605 kilowatts of solar panels which required the company to become a registered power station.

Thank you for your support in the acquisition of the shares in PGM that the company did not already own. The vote of shareholders was practically unanimous in supporting the Pictured: Steven Lee, MPC General

Manager and Jane Meeve

Extraordinary General Meeting

The company has called an Extraordinary General meeting to be held in early October at which shareholders will vote on 3 resolutions. Please refer to the explanatory memorandum that was sent to all shareholders for further information in regards to this meeting.

Date: 2nd October 2019

Time: 18:00 Australian Eastern Standard Time

Venue: Goonellabah Sports Club, 202 Oliver Ave, Goonellabah NSW 2480


transaction. As stated at the time of the proposal, the Board

sees this as an important strategic step in growing the business and in our ability to influence the stable development of the global macadamia market.

The Board and management are currently working on a plan that will see both the business and assets of PGM transferred into MPC as at the end of the current financial year 31 March 2020. Following this transfer, MPC will be a company with two processing factories which internally will be recognised as separate divisions for performance measurement purposes.

The Company

The company returned a record pre-tax profit of $8,540,443. When the results of our two joint ventures are included the pre-tax profit increases to $9,343,764. This strong result was achieved after paying a record price for NIS of $5.60 a kilo.

The profit was an exceptional performance and as a result we have paid a larger than normal fully franked dividend of 80 cents to Ordinary Class shareholders.

The size of the profit, I believe, is the result of many factors of which I would like to list the main ones:

1. The loyal commitment of our shareholders

2. The increasing through put of the factory

3. The strong financial position of the company

4. The many years of investment in the factory to ensure cost efficient

processing and a high quality product

5. The commitment and expertise of our management team and staff

6. A strong focus on minimising wastage

After providing for the cost of the dividend, the groups capital increased by $6,391,600 over the year. With the significant forecast growth in the Australian industry over the next decade it is important to continue to build our capital to ensure we increase our share of the Australian industry and that we continue to be able to influence a stable development in the global macadamia market. This increased capital is required to both fund capital expenditure to increase the capacity of our factories and to increase working capital to fund payments to growers. For example; for each 1,000 ton increase in input to the factories we require approximately $4 to $5 million to fund payments to growers prior to the NIS being converted to kernel and payment being received from customers. Whilst our bank will finance a large share of this through seasonal finance, we must meet our share.

I would like to note the three major projects completed during the year:

1. The installation of the 600 kw of solar panels

2. The new drying building with additional storage capacity

3. The installation of a sprinkler system throughout the factory to meet insurance requirements.

Currently Steve is working on a plan to upgrade our cracking

room prior to next season. The current cracking room has had no major upgrade for many years. As the volume of input to the factory increases, if we do nothing, we would have a bottleneck with our current cracking capacity. This would require both additional expensive storage capacity for NIS and additional finance to fund that NIS as it is held longer before being converted to kernel. Upgrading the cracking capacity will eliminate this bottleneck and enable us to get more kernel to market sooner.

I would also like to welcome our new Chief Financial Officer, Ivan Giuricich, who joined the group in late April. Ivan’s family is extensively involved in macadamias and Ivan brings a lot of relevant expertise to the role.

If I may now comment on the performance of our two joint ventures which as from 1 May 2019, became wholly owned subsidiaries.

Pacific Gold Macadamias

The company had another successful year with an increased pre-tax profit of $3,084,035.

We welcomed Craig Brice to the role of General Manager of the factory last September. Craig brought to the role the benefit of 20 plus years’ experience with MPC which is aiding the process of standardizing procedures between the two factories.

Since last season the company has completed a major upgrade of its cracking room and completed the installation of its Napasol machine. As a result the output of both


factories is now 100% pasteurised.

The factory continues to operate at or near capacity and plans are being developed for discussion with the local council to enable a major increase in size of the factory over the next decade.

Macadamia Marketing International - The marketing company

Firstly I would like to welcome

Peter Costi who took over the role of chairman of MMI three months ago.

MMI continues to play a major role in the success of the group through its successful marketing of both kernel and NIS.

As reported last year a major new processor, Global Macadamias, has been established in South Africa. Its factory is nearing completion and will be operational from next year. This is a substantial factory built with an ultimate capacity of about 30,000 tons. It is proposed that Global will acquire a 50% interest in MMI in October, subject to the signing of an agreement between MPC and Global.

The Board sees this as a very important strategic move for MMI, as it gives both, access to increased supply of product to work with major customers on managing stable growth in markets and prevents Global becoming a competitor.

One significant issue our marketers and Board have been looking at over the past year is the issue of branding. Currently we are a mixture of different names and brands. For example, we process as

MPC and PGM, market through a company called MMI and put all our product in boxes labelled International Macadamias Limited. We also own the names Macadamia Magic and Consolidated Nuts Australia and have used the brands of McAdams and Growers Choice. This is both confusing to customers and fails to provide a solid platform for future development.

Contrast this with the successful local business Brookfarms. Their property is called Brookfarms, the factory is called Brookfarms and their product is marketed under the brand Brookfarms.

Whilst we recognise there is a lot of loyalty to our existing names and they have a proud history, we need to look to the future and are proposing to rebrand the business. This is something that is supported by the company’s founder, Phil Zadro, as I hope it will be by all shareholders.

Larry and Charles will be giving a presentation regarding the proposed new brand later in the meeting. I personally believe that the brand is both distinctive and reflects class. As you will appreciate it is near to impossible to come up with a name that is going to satisfy everyone, and is also not already used by another nut business, I believe that we have come up with a distinctive name, that also looks good, as you will see in the presentation. Even if the new name does not appeal to you, I hope you will recognise the importance of establishing a clear brand.

Over the next month there will be a presentation of the new

branding proposal with an opportunity for shareholders to raise any questions they may have. Following this, an EGM will be held to vote on the proposal. This proposal will require the support of 75% of shareholders voting to be carried.

Current Season

For most growers I believe the extended hot dry season has had a negative impact on their crops with both lower volumes and kernel recoveries. We currently believe the overall crop is likely to be down 20 to 25% on the initial projections.

Our initial price for the season of $5.40 was a strong price. Whilst the lower through puts of our factories will impact our forecast profits, we currently expect that for the eleventh year running we should be able to announce a price increase in December. It is unlikely however to reach the exceptional level of last year.

Acknowledgement

It has been another successful year. Thank you to both you, the growers, for your support and the management and staff for all their efforts over the past year.

We look forward to a challenging, dynamic year ahead.

On behalf of the Board

- Thank You.


Marketing Report Charles Cormack, General Manager, MMI

Despite regular warnings by commentators of a global economic slowdown, all our market intelligence and customer feedback is that retail sales of macadamias and products incorporating macadamias remains buoyant and demand strong. With a very high proportion of our forecast kernel production contracted early in the season, at strong international and domestic prices, it has been a waiting game to see where the full macadamia crop volume ended up and whether we would have more kernel to sell in the second round offers.

As it turns out the hot and dry conditions which have continued unabated through the harvest season in all the major macadamia producing regions of the world, has meant the global crop will come in well below original forecast expectations. This is putting additional pressure on an already tight kernel market. The Australian crop is now officially expected to finish around 14% below the original forecast and with the size of nuts and kernel also being reduced by the dry conditions, kernel production in Australia will be down by at least 20% on last year. Indications are that South

Africa will be lucky if it is on par with last year despite new orchards coming into production and our intelligence is that Kenya will be between 20% and 30% down on last year.

The net result of all this is that our second round offers which are now going to market will be almost entirely devoid of large size kernel and there will only be modest volumes of smaller wholes, halves and chips available to keep the market sustained through until the next season.

The NIS market in China has continued to strengthen since the beginning of the season (after a slow start) and demand has picked up considerably over the past few months with traders, manufacturers and retailers all looking to supplement their early contracts with additional volumes to see them through the season. Again, we will unfortunately only be able to offer very limited additional quantities of NIS into the market and will not be able to fully satisfy demand.

All eyes are now turning to the weather forecast with good soaking rain required in all growing regions to ensure a good nut set and the makings of a more productive season for next year.

MMI will once again be in attendance at the Anuga trade show in Cologne in early March and will be

meeting with some of our regular and loyal customers from Europe and beyond as well as some significant potential new customers, and scoping the market for more future opportunities.

Pest and Disease

Management Update

Meeting Mark Whitten, Agricultural Liaison Officer MPC

To ensure MPC growers have access to the most current information on pest and disease management and are prepared for the fast approaching 2019-20 spray season, MPC in conjunction with NSW DPI held an pest and disease management update meeting at the NSW Centre for Tropical Horticulture on Friday the 19th July. Presentations were targeted to cover both theoretical and practical aspects of pest and disease management. Presentations from Craig Maddox (NSW DPI entomologist), Dr Femi Akinsanmi (QAAFI) and David Elmouttie (BASF) discussed insect, disease and rodent management. Jeremy Bright (NSW DPI) and Matt Moyle (Nufarm) discussed issues around drift management and record keeping. Dan Rollinson (Ace Ohlsson) presented on the safe use of pesticides. I also spoke on issues around tank


mixing of pesticides and handed out an MPC tank mixing guide that is specific to macadamia pesticides. Col Peak (Peak Environmental Monitoring) finished the meeting by discussing weather stations and their application on macadamia orchards.

Drift Management and Record Keeping

Matt Moyle (Nufarm) spoke on drift management. Matt firstly pointed out that drift is a result of small droplets and that droplet size is a function of nozzle type, pressure and adjuvant. While pressure must remain high when spraying macadamias Matt stated that we can reduce the formation of small droplets through better nozzles selection and choice of adjuvant.

In regards to nozzles, Matt recommended the use of Air Induction (AI) nozzles (Figure 1). AI nozzles draw air into the nozzle to produce droplets filled with air bubbles. These droplets are bigger and as a result are less prone to drift. Figure 2 shows the difference in smaller droplets using AI nozzles compared with disc nozzles. Matt recommended that AI nozzles work best up to 15-20 bar pressure. If you need to operate at higher pressures, using nozzles that produce larger droplets (eg cannon nozzles) should be used. AI nozzles will fit easily into standard brass nozzle

caps, but there is a spacer required to ensure the air intake hole is not covered.

In regards to adjuvants, Matt suggested that non-ionic surfactants (NIS) such as Chemwet 1000, Wetter 600 or Agral will tend to enhance drift. As such, he advised the use of low drift, low foaming alternatives such as Activator, Collide 700 (LI-700), oils and or Designer should be used.

When discussing drift management, Matt emphasised the importance of weather conditions during spraying. Matt discussed how Delta T and surface inversions relate to drift. He stated that Delta T measurements (Figure 3) are often misunderstood and that a Delta T value essentially provides a guide to the lifetime of the spray droplet and its dispersal potential. If

it’s too dry, i.e. Delta T value greater than 8, a lot of droplets will evaporate and or turn into smaller droplets, which means reduced spray efficacy and greater drift potential. Conversely, if it’s too cold and/or humid, i.e. Delta T value less than 2, the life of small droplets is extended and drift hazard is increased.

Regarding wind speed Matt explained the best wind speed for spraying is a light breeze (7-10km/hr) and if using low drift nozzles wind speeds up to 11-14km/hr are suitable. However, just as wind speeds over 14km/hr should be avoided, so to should conditions of no wind as droplets are more likely to remain suspended in the air.

Matt finished by emphasising that the potential for spray drift can be significantly reduced through the creation of larger droplets and only spraying within appropriate Delta T and wind speed ranges.

Jeremy Bright (NSW DPI) spoke next about legal responsibilities around application of agricultural chemicals with a focus on record keeping. Jeremy referred to the example spray record form contained in the 2019 Macadamia Plant.

Figure 2: Difference in drift using hollow cone (left) and AI (right) nozzles

Figure 3: Delta T Chart (Source: Crop Smart)

Figure 1: Course AI Nozzle


Protection Guide (0). In regards to the weather details Jeremy reinforced the need to have, at a minimum, records of temperature, relative humidity, Delta T, wind direction and wind speed for the start and finish of the spray operation. Jeremy stated that while weather details can be sourced from the Bureau of Meteorology (BOM), it is preferable to take measurements from your own property. He suggested that this can be done a number of different ways, such as dedicated weather stations or something as easy and inexpensive as a hand held anemometer. Interestingly, local grower John Shirm mentioned that he has been using an anemometer that plugs into his mobile phone (Figure 4) that records all required information, including GPS co-ordinates, which can then be stored, emailed or sent via text. Details can be found at www. weatherflow.com/weather-meter-for-ag/.

Jeremy finished by emphasising the importance of spray records, reading labels and following the mandatory statements provided for each product and directed growers to the

NSW DPI Macadamia Plant Protection Guide 2019-20 pages 64 and 69. For more information on either managing spray drift or legal responsibilities around application of agricultural chemicals visit: www.dpi.nsw.gov.au/agriculture/horticulture/nuts/growing-guides/macadamia-protection-guide

Insect Pest Management

Craig Maddox (NSW DPI) then presented on pest management in macadamias. Craig focused on the four main insect pests that macadamia growers in the Northern Rivers face, which are Lace bugs, Macadamia Seed Weevil, Fruit Spotting Bug and Macadamia Nutborer. For each pest, Craig was able to explain the key points about their lifecycle and ecology to enable better monitoring and control methods. This is a summary of his main points:

Macadamia Lace Bugs Ulonemia decoris, is the main type of lace bug found in orchards with over 14 species having been recorded (Ryan Schofner UNSW).

Life cycle: Eggs are laid into florets, 5 nymphal stages with full wing buds on 5th stage, but only adults can fly. The lace bugs feed on trunks between flowerings. They have a very short lifecycle, averaging 16 days from egg to adult at 25°C. Lace bug populations can be limited naturally by high rainfall over winter, which causes stem flow to drown adults or heavy wind to dislodge nymphs from racemes during flowering.

Ecology: Lace bugs love closed canopy and poor ventilation. They work from the bottom up in trees. If out

of season flowering occurs (eg May) and if left unchecked leading into main flowering in August they can cause considerable crop loss. Flights from external sources each season have been observed (other Proteacea e.g. Grevillea). This makes regular monitoring critical.

Damage: Lace bugs are sap suckers and their saliva is toxic to flower buds. The most obvious sign of lace bug activity is the death of florets on the end of a raceme or dead florets on a raceme.

Monitoring: Block history is critical. Adults are normally found first in out of season flowering areas of orchards or boundaries. These areas must be monitored to see how these populations change. It is critical to check racemes for live bugs and cast skins. The population can build up quickly – over the course of a week you can go from small numbers to significant numbers present. This makes very frequent monitoring and the ability to apply any required insecticides for control in a short timeframe critical. The damage caused by lace bug can be significant, with crop losses of up to 90% being observed.

Control: Use Diazinon as late as possible before main flowers begin opening. Diazinon is HIGHLY TOXIC to bees and other beneficial insects. DO NOT spray trees

Figure 4: Phone linked anemometer

Figure 5: Adult Lace bug


while bees are actively foraging. Apply spray in the late-afternoon or early evening. Diazinon residues on flowers can remain dangerous to bees for up to 1 week post application. If re-infestation occurs or levels exceed thresholds during flowering, only use Trichlorfon (Lepidex) at night for bee safety.

Macadamia Seed Weevil (MSW) Kuschelorhynchus macadamiae

Life cycle: Once nutlets reach 8mm size (often referred to as pea size), MSW starts laying on mass and viable weevils will emerge from these nutlets in approximately 40 days (Figure 6). Adults are long lived (300+ days) and females can lay approx. 40 eggs per week.

Ecology: MSW are good flyers and are normally within orchards on early set nut and in areas with poor orchard floor hygiene. Their activity is restricted to warmer temperatures. In winter adults are active during the middle of the day and will find flowering trees waiting for young nut to breed within.

Damage: To lay the egg the female weevil will bore a hole in the husk through which it lays an egg either into the developing kernel or just above the soft shell. The weevil will then cover over

the newly laid egg with chewed bits of husk it has grazed from around the hole. Nuts are susceptible up to shell hardening.

Monitoring: Infected nuts should be gathered and regularly cut open to gauge the MSW development stage. Monitoring infected nuts should continue until there is a large proportion of nuts with either late stage larvae or pupae. At this point, the orchard floor should be cleared of infected nut and a spray of a registered chemical considered.

Control: Macadamia seed weevil control has improved dramatically since the introduction of the insecticide indoxacarb (Steward). Indoxacarb is aimed at ingestion by MSW before the nuts reach the size when adult start laying (8mm nuts). This application will reduce egg laying and in turn it will help prevent juvenile MSW establishment. With good spray coverage and orchard floor hygiene (i.e. fallen infected nut is removed or destroyed), it is hoped a single spray will be all that is required. Importantly, indoxacarb is not to be used before the main flowering as it is highly toxic to bees.

Fruitspotting Bug (FSB) Amblypelta nitida

Life cycle: Eggs are laid singly. There are 5 nymphal instars with full wing buds on the 5th instar. Adults can live 3 to 6 months. FSB will pulse lay after rain. At 200C FSB will develop into adults within approx. 63 days, while at 250C they will develop into adults within 45 days. FSB will usually pass through 3-4 generations every year, and more heat will see longer and later activity.

Ecology: FSB have many external/alternate hosts. They thrive when there is ample fruit set in surrounding vegetation (wet spring/summer is a problem). FSB are very mobile and will return to previously damaged crop areas or “hot-spots”. They will often appear in earliest set varieties and return consistently to ones that are flowering again. FSB are often very active after storm events in summer and difficult for growers to manage if wet weather persists for long periods. As seen this season, drought will reduce external pressure; however other bugs may fill this void (e.g. Green Vegetable Bug (GVB), Vitellus antemna, Leptocoris sp.).

Damage: Early season damaged nutlets drop from the raceme until approx. 12 weeks post anthesis (up until around mid November). After this time nuts will continue to be damaged by FSB but less and less fall off the tree. The visible symptoms of damage follow this same pattern, with less and less damage obvious until late in the season, FSB damage is only visible in the kernel, which are called ‘blind stings’.

Monitoring: FSB hot-spots will often be located on the edges of blocks and adjacent to forest. Industry thresholds for FSB are 3% infected nut drop in spring/early summer,

Figure 6: MSW life cycle

Figure 7: Adult FSB (Source: good-bugs.org.au)


however, any fallen nut sampled must have recently fallen. Recently fallen nut will tend to have a green gloss as opposed to older nut that will have lost its gloss and be dull. An issue with FSB monitoring is that late season damaged nut i.e. after Christmas will stay in the tree. As such, we need to sample the upper canopy for fresh activity on nut. Potential methods may include the use of a Cherry picker (Hydraladder

®) to get up into

the canopy, drop sheets and trap hedges. NSW DPI are successfully using Macadamia ternifolia and Murraya paniculata trap hedge data to monitor FSB life stages and predict when FSB flights will occur, which is helping to inform spray decisions.

Control: Use monitoring data and well timed sprays to target spring and early summer population build up. There are a number of registered chemicals for FSB; however, for late season FSB spray options, we suggest that Bulldock

® is best at

present.

Macadamia Nutborer (MNB) Cryptophlebiae ombrodelta

Life cycle: After egg laying there are 5 larval instars (can be more), pupae and then moth hatching. Moths need to fly before mating. When laying they will lay 150+ eggs. Eggs hatch within 3 days. The MNB moth fly through and lay on nuts above 20mm diameter usually from mid-November to maturity. The MNB moth likes warmer nights to lay (25-30˚C optimal) with higher humidity increases 1st instar larval survival rates rise. Temperatures above 35˚C or below 15˚C stops laying.

Ecology: Adult flights are from external sources each season (mangroves active all year) from mid November throughout summer and within the orchard when nut is present.

Damage: After the MNB moths lay on susceptible nuts, the larvae will then bore through the husk into the developing kernel. However, if the shell has hardened the larvae will develop between the nut and the husk and lead to immature nut drop if larval feeding gets near the suture line of the nut.

Monitoring: Pheromone traps are used by the NSW DPI to detect the flights and determine when laying has commenced. This monitoring will then signal the need to release the egg parasite Trichogrammatoidea cryptophlebiae. The industry standard spray threshold for MNB in the December period is 1 live egg. However, with the wide adoption of the egg parasitoids the requirement for specific MNB sprays has dramatically reduced.

Control: Trichogrammatoidea wasps have proven to be the most effect control for MNB. The wasps should be released on the onset of egg laying from mid-November on. A point to remember is that while sustained temperatures above 35˚C will stop MNB laying, they will also kill off

the parasitoid wasps. This effect was seen this season during the extended dry and hot summer. As such, re-releases will be required if the weather is excessively hot (e.g. >35˚C for a week).

After discussing management of the four main insect pests in macadamias, Craig then emphasised that monitoring is the key to getting the timing right. He asked growers, “How well do you know your farm? Can you find the hot spots for each pest on your site?”. He stated that every farm benefits from good monitoring and well timed sprays because you are limiting the pressure generating from your orchard. Additionally, if you do it right the first time, you’re reducing the number of spray applications required. This is a win-win.

Craig finished by explaining that effective pest management always requires an integrated approach. The lifecycle and ecology of the pest need to be understood so monitoring can be more targeted to susceptible life stages. Then, based on sound monitoring, it’s then possible to deploy control practices, be that cultural, biological or chemical, that will have the maximum impact on pest populations.

Disease Management

Femi Akinsanmi (QAAFI) was next to present on disease management in macadamias. Femi firstly highlighted the major diseases in macadamia, being raceme blight, botryosphearia dieback, husk spot and husk rot (Figure 9) and explained that the impact of each disease varies, depending on the history of the disease in the orchard, the stage of

Figure 8: Adult MNB Moths


Table 1: Registered fungicide products for husk spot control

flower or crop development when infection occurs and the cultivars and that research has shown that different combinations of climatic conditions are the key to understanding infection and disease development.

Femi, described that an integrated approach is the most effective way of managing diseases. Femi summarises this approach in three steps: prevent, monitor and intervene.

Prevent:

• Understand the different conditions in which different diseases thrive.

• Know your cultivars – some are more susceptible to particular diseases.

• Manage your whole farm in an integrated manner.

• Use cultural practices to

prevent disease (e.g. maintain an open canopy to increase air movement and reduce infection).

Monitor:

• Inspect your trees regularly.

• Get to know where and when disease hot spots occur in your orchard.

• Discuss disease problems with your pest consultant.

• Determine the best course of action.

Intervene:

• Decide what actions are needed and when they are best carried out.

• Plan your intervention strategy – the best time to spray for flower blight is during stage 2 flowering.

• Consider any long-term impacts of your strategy.

Husk Spot Management

Femi, then discussed Husk Spot management, which he stated as the most significant disease of macadamias in Australia. He stated that control is important to avoid significant yield loss and that there are registered fungicides and cultural practices that can effectively be used to control husk spot. Timing of first spray application is critical, at match-head stage. Spray coverage must be adequate to effectively prevent infection of developing nut. In cultivars with no stick-tights or where stick-tights have been removed, spray application of fungicides should be minimized or focused on trees/cultivars with stick-tights in the canopy and/or a history of husk spot.

Figure 9: Diseases in macadamia (Source: QAAFI)

Active Ingredient Concentration Product Example Chemical Group Rate / 100L

250g/L Fluxapyroxad + 250g/L Pyraclostrobin Merivon 7 11 40

250g/L Pyraclostrobin Cabrio 11 40

500g/L Carbendazim Spin Flo 1 50

250g/L Difenoconazole Digger 3 50

200g/L Penthiopyrad Fontelis 7 150

220g/L Tebuconazole + 120g/L Azoxystrobin Custodia 3 11 60

Copper compounds Copper M1 Various


Husk Spot Fungicide Resistance Management Strategy

• Apart from Group M fungicides (e.g. copper), DO NOT apply more than two consecutive sprays (including from one season to the next) of fungicides from the same group before changing to another group.

• The limit of two sprays per season for Group 7 and Group 11 applies to co-formulated products i.e. you can’t make two applications of Cabrio and one application of Merivon because they both have a group 11 active ingredient.

Husk Spot Cultural Practices

• Maintain regular and quantitative assessment of risk.

• Use tolerant and stick-tights-free cultivars.

• Adopt cultural practices that minimize build-up of stick-tights (to reduce inoculum pressure).

• Use tree shaker to remove stick-tights from canopy.

• Monitor kernel maturity (to time orchard clean-up for harvest).

More information on husk spot control can be found on the MPC website: www.mpcmacs.com.au/husk-spot-a-review-of-what-we-know/

Rodent Management

David Elmouttie (BASF) spoke about rodent management and their new soft bait rodenticide Selontra

®. David started by

explaining the traditional rodent management programs have relied heavily,

if not exclusively, on mortality-based approaches (baiting, fumigation of burrows and trapping). However, when you understand the rodent’s ecology it highlights that any control programs must consider complex crop-pest interactions and therefore include monitoring, habitat modification, resource (crop and non-crop) management as well as measured use of mortality tools.

David stated that managing rodents within orchard systems must be a season-long strategy that must aim to reduce alternative food resources and nesting sites. Growers need to pay attention to orchards throughout the season so they can quickly react to rodent outbreaks and manage the populations before extensive damage occurs. David then gave some key recommendations to enable growers to develop their rodent management programs. David did note that the recommendations might not be viable for all orchard systems or every year, however, they are presented as a guide for growers

Season Long

It is imperative that adjacent non-crop habitats are effectively managed and maintained. Riparian zones, headlands, property boundaries and windrows

must be kept void of weedy non-crop vegetation (e.g. grasses, lantana and wild tobacco), which provide essential food and nesting resources for the rodents. These areas can be maintained by mechanical modification (slashed) or revegetated to a forest type known not to support Rattus rattus e.g. rainforests.

The orchard system itself, e.g. inter-rows, must also be effectively maintained to reduce cover and alternative food resources and to encourage natural predators (e.g. owls). This can be achieved through mechanical means (slashing), or by applying a suitable herbicide.

Cultural practices such as insect refuge 'mohawk strips' to encourage beneficial insects can be established and are compatible with rodent management strategies, although they should be maintained and limited to the areas required. If rodent activity is observed, baiting programs (with a suitable registered product) should be undertaken within these refuges. Skirting trees to open up the orchard system to natural predators and reducing canopy access for foraging rodents is also recommended.

Harvest

Harvest should be conducted regularly to minimise the amount of nuts on the ground. This is particularly important from May to September, when rodents have been shown to remove nuts from the orchard floor. At the end of each harvest season, any remaining nuts on the ground should be mulched as soon as practical to ensure the nuts are not left for the rodents.

Figure 10: Rat eaten nuts are lost production (Source: Ohiwa Macadamias)


New plantings

When establishing new plantings growers must consider the possible effects of rodents. Certain tree varieties exhibit traits which make them more susceptible to rodent damage, such as thinner shells and the prevalence of stick tights. Block design and varieties should also be considered, as the inability to harvest and manage blocks resulting from poor weather, is often a precursor to high rodent damage.

Baiting and burrow management

Baiting should be undertaken strategically, targeting known areas of rodent activity within orchards with growers encouraged to focus on key blocks which have suffered rodent activity previously.

Using bait stations is imperative; they are a legal requirement of all registered bait products and are essential to increase bait intake and maintain bait freshness. Baits should be secured within bait stations ensuring they are kept off the base of the bait station using the securing rods provided. In stations where securing rods are not

provided, a wire tie should be used.

Where burrows are observed, rodents should be eradicated before the burrows are disturbed or ripped. Burrow fumigation (e.g. carbon dioxide) and baiting have been shown to be effective. When baiting, use baits that will not fill the burrow entrances as the block baits will be expelled from the burrows and thus made available to non-target species. Using appropriately registered dusts or grain baits is considered the most suitable approach.

Selontra® Soft Bait

Rodenticide

Selontra Soft Bait rodenticide contains a novel naturally occurring active ingredient, colecalciferol. Selontra is a fast-acting acute rodenticide, which can control rodent populations faster than traditional anticoagulant baits and also has a stop feed action once a lethal dose is consumed which ultimately reduces crop damage.

Selontra has a unique, softer, environmental toxicity profile and is neither persistent nor bioaccumulative like other rodenticides. It also has a significantly reduced risk of secondary non-target poisoning so it fits perfectly into on-farm IPM strategies. These unique characteristics have also resulted in a broader use pattern, with Selontra approved for use: in and around buildings, farm sheds, along fence lines and within Macadamia orchards (in-tree, on-ground and within adjacent non-crop habitats).

Tank Mixing for Macadamias

I, Mark Whitten (MPC) then spoke briefly about tank mixing agricultural chemicals. My top tips were:

• Consider water quality and tank pH

• Know the product formulation

• Follow the correct mixing order

• Have adequate water volume

• Have adequate agitation

• Allow sufficient time between additions

• Keep mixes simple i.e. 2-3 products

• If unsure of compatibility, ask your reseller.

I handed out an A3 sized MPC Seven Step Tank Solution Guide. The guide was purposely printed on corflute so it is weather proof and able to be hung at or near tank filling stations.

Early in the season, when rodents are known to be feeding in the trees (January–May), baiting programs should focus on the tree, then as the amount of nuts in the trees decline and become more abundant on the ground (May through to final harvest), baiting programs should target that area.

Figure 11: 5kg Pack of Selontra Soft Bait

Figure 12: MPC Seven Step Tank Solution


Note that within a step where different formulations are mentioned, the order of formulations needs to be followed.

If you missed out on your sign, feel free to drop into the factory or contact one of the grower liaison officers.

Safe Use Handling of Pesticides

Dan Rollinson (Ace Ohlsson) presented on safe handling of pesticides. Dan emphasised that when handling pesticides we need to be conscience of both minimising exposure risk and also minimising risk of physical injury when lifting, decanting and pouring from drums.

To minimise these risks, Dan suggested the simple solution of using drum taps (Figure 13). Drum taps can be fitted onto any sized drum from 20L, 200L or 1000L IBC’s, which allow safe and easy poring of pesticides. Additionally, it means you can use larger containers, i.e. 200L, which are generally cheaper and reduces the number of empty 20L drums on-farm.

For 10 and 20L drums with

an external male thread, a Schutz 15 aero flow tap fitted will fit most situations (Figure 13).

For 200L drums, you will need to quote Dan the code melted into the drum which describes the style of the thread. There are multiple thread types so please check before buying. They also have a range of fittings for 1000L drums that make decanting a lot easier. All of which can be sourced on request.

Feel free to contact Dan for any questions on 0447 498 763 or [email protected]

Weather Monitoring Stations

Col Peak of Peak Environmental Monitoring spoke on weather monitoring stations and the delivery of near-real-time weather data

to smart phone and tablet devices. Col began by explaining that when you’re deciding on a weather monitoring station, you first need to know what weather parameters you wish to measure and how much you are willing to spend. For macadamia spraying, he stated the key parameters are wind speed, direction and delta T values (a function of temperature and humidity). Other sensors such as rainfall and soil moisture are of agronomic value; however, additional sensors add cost and are not critical for spray records. In regards to sensors, Col stated that there is a huge range of sensors available; however, the price of sensors is determined by their accuracy and robustness.

Col stated that their entry level weather monitoring station that would be suitable for macadamia growers would be around $2200 + GST with an annual data service and customer support fee of $150 + GST.

Importantly, Col emphasised the need to install the station in a position so that the most

Figure 13: Drum tap in cap

Figure 14: Example of near-real-time data from the cloudLink website (Source: www.cloudlink.net.au/cloudlink/SprayGuide.html)


representative and reliable data is recorded.

Separate to the physical weather station and recording of weather data, Col described that the most rapidly changing technologies involve how the data is communicated and displayed. To communicate the data, Col explained that communication can be via direct connection to the internet using an inbuilt mobile phone or modem or the data communication can be via a local or wider area Wi-Fi network.

In regards to displaying the data Col, stated that they use internet connected stations

so data graphics can be accessed on any computer, phone or tablet that have an internet connection. In the future, Col mentioned that they will be looking at developing real-time alerts that will send notifications when weather conditions become unsuitable for spraying.

Conclusion

Responsible application of pesticides and keeping both detailed and accurate spraying records is fast becoming one of the most important issues the macadamia industry is facing. As such, MPC fully endorses the use of any technology

that will make it easier for growers to keep better records and also to make more informed spray decisions.

Understanding the pests and diseases is critical to know when the pest is most susceptible and when the crop development stage is highly susceptible to damage. Integrating this with the correct application technology to achieve coverage and keeping accurate records is key to successful management of pests and diseases.

MPC would like to thank all presenters for their time and valuable input into the day.

Pictured: Craig Maddox demonstration how to use trap hedges as part of an integrated monitoring program for FSB.

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Disclaimer

The contents of this publication are subject to copyright and may not be reproduced in any form without written permission

from Macadamia Processing Co. Limited. The publication is intended to provide general information only, and while all care has

been taken to ensure that the information contained in this publication is true and accurate, no responsibility or liability is ac-

cepted by Macadamia Processing Co. Limited or its staff for any claim which may arise from any person acting in reliance on the

information setout in this publication.

Editorial Policy The editorial committee reserves the right to edit, withhold or reject all material.

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sept 2019 general managers report by steve lee

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