Dairy Focus August

Dairy Focus AUGUST, 2014

The new voice of dairying Pages 3-5 Photo Tetsuro Mitomo

Jessie Chan-Dorman, the dynamic new Federated Farmers’ dairy spokesperson.

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Matt Jones talks about staff burnout over calving and the consequences of not dealing with it.

Matt Jones

Grant Davies

Chanelle O’Sullivan

Fred Hoekstra

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STAFF MATTERS

Grant Davies discusses investing in the lucrative a2 Milk Company.

P15

Chanelle O’Sullivan reminds us no child ever remembers that great day they spent in front of the television.

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Fred Hoekstra discusses the importance of dairy cattle having a dry place to lie down.

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A BROKER’S VIEW

FACE TO FACE

COMMENT FROM EDITOR

M

ost dairy farmers will be looking at the tail end of the calving season and looking forward to life on the farm returning to its normal rhythm in a few weeks.

For the most part Mother Nature has treated the newborn calves and their mothers kindly in our neck of the woods, but further south farmers have been dealt a good dollop of the white stuff.

In this issue our employment expert Matt Jones discusses the importance of looking after staff, during this particularly stressful time.

Cold, tired and burnt out workers are more likely to have accidents and succumb to illnesses.

Tempers are also inclined to become frayed, resulting in discord in the team.

None of this is conducive to harmony in the workplace. Cows also become stressed by angry and aggressive workers, resulting in a

Michelle Nelson

RURAL EDITOR

drop in productivity.

No matter how hectic things are, it’s vital to monitor staff and put systems in place to manage workplace burnout, because the cost of not doing so can be significant.

Sleep in rosters, providing a nutritious meal at least once a day, and making time to catch up to identify issues all go some way toward surviving the calving season, with your nerves intact.

We also meet Jessie ChanDorman, Federated Farmers’ new Mid Canterbury dairy spokesperson and take a look at Wim and Carla Verberne’s award winning Thompsons Track operation.

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Chan-Dorman: Every cow counts Jessie Chan-Dorman and husband Hayden Dorman take a look at the next generation of their herd.

Michelle Nelson

RURAL EDITOR

Don’t be fooled

by Jessie ChanDorman’s age or size; this dynamic young woman brings a wealth of experience to her new role in Federated Farmers.

She spoke to Michelle Nelson about where she comes from and where she’s going.

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A new voice in dairying F

ederated Farmers Mid Canterbury has a new voice in dairying.

Jessie Chan-Dorman comes to the chair with a wealth of experience across a wide range of sectors in agriculture.

With her husband Hayden, and 13-month-old son Adam in tow, she farms on 420ha at Dorie, leased from Italian company Berilla Brothers.

Jessie and Hayden got their start in the industry as lower order sharemilkers, working for Willy Leferink – who was also her predecessor as dairy spokesperson for Federated Farmers.

In their second season out on their own, the couple are running 1700 cows through two sheds, in a high input system, aiming to produce 600kg/MS per cow annually.

While Hayden grew up on a dairy farm, Jessie came into the industry through a different door.

She studied animal science at Massey University before completing an honours degree in ruminant nutrition. Tertiary studies behind her, Jessie worked in a variety of jobs

based in Wellington for 10 years, beginning with a stint with the MAF biosecurity team dealing with live animal exports and imports.

Jessie has also worked as a dairy policy adviser for Federated Farmers, where she managed an industry team.

“It was good to learn about the other sectors within Feds,” she said.

Various roles with Meat and Wool New Zealand, DairyNZ and Environment Canterbury followed.

In terms of personal development, Jessie has completed the Fonterra governance development programme at Massey University, been to China with the Food and Agribusiness Market Experience (FAME) delegation, organised by Lincoln, Otago and Massey universities. She’s a graduate of the New Zealand Kellogg Rural Leaders Programme, where she looked at traits other than production in dairy cattle and the impact on longevity, and also been to Japan with an agricultural delegation.

Back on the farm Jessie runs the administrative side of the business.

Despite milk prices sliding backward, she believes the long-term outlook for the industry is strong.

“GlobalDairyTrade is not the only factor influencing the price, the stubborn dollar is having an impact,” she said.

“We know there will be volatility and we need to make our businesses robust enough to deal with it.

“I’m a big, big supporter of co-operative models – I’m a director of ATS. “It’s not a shock – I don’t know why people are surprised when the price moves.

“Dairy farmers need to be smart with what they do with the income from those high pay-out years, so they can ride out the volatility.

“We also need to think smarter about how we do things, especially with regard to natural resources and looking after them.”

In this light Jessie views the regulatory requirement soon to be imposed by Environment Canterbury as an opportunity

to fine-tune systems and put the spotlight on more efficient farming methods.

“We’ve come a long way in the past 10 years – the progress with effluent management is really positive.

We need to make that same progress with nutrient management – we can’t change

the soil type – there’s no easy fix, but it’s not impossible.”

She is philosophical about cow homes, saying while they address some of the environmental issues, they are not for everyone.

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Busy mum Jessie takes time out to play with 14-month-old Adam.

sustainable business.

“For Hayden and I, running a sustainable business means looking after our cows, our people and our land.

“Our philosophy is every cow counts.”

Alongside the dairy operation, Jessie and Hayden have set up the Riverstone

Holstein Stud. “It’s early days – but it’s been Hayden’s dream since his parents bred jerseys on the Coast.

“We have holsteins, but we’ve also purchased some purebred jerseys and we’re doing some embryo transfer work with both breeds.

“We’re not developing

a show herd – we have to produce a profitable milk herd.

“We bred American holstein friesians, selecting strong cows with capacity and good udders – they need to be able to produce 600kg a year, based on a 305-day lactation period, throughout their lifetime – and live a long and happy life.

“If a cow is producing 50 litres of milk a day, they have to be strong enough to carry it around. Our top cow produced 980kg/MS last year, but we want to reduce the variation to get a more consistent herd of animals.

“If they have good confirmation and are well fed throughout their life, cows should still be producing well at eight or nine years old.”

Jessie and Hayden operate a split calving system, so if a cow has good confirmation and produces well they will get two chances of getting in calf, however any animal with fertility problems ends up on the truck. “You have to be quite disciplined in a split calving system, not to keep too many problem calvers.

“Our cows are all body

condition scored at five before they are dried off. We’ve proven the link between that and fertility.”

The couple also depend of state-of-the-art technology on the high production unit.

“Over the years the industry has only looked at herd averages, but technology allows up to focus on each cow.

“We’ve got a lot of technology in the shed – we operate a Westfalia milking system and Dairyplan software with milk meters – it allows us to collect data on each cow’s production and feed her accordingly.

“There are four silos in the shed – wheat, mineral pellets, peas and canola. We ration feed through the shed based on production – it makes feeding a lot more efficient and enables each cow to maximise her potential.”

While the young stock are grazed off farm, Jessie anticipates dairy support will be a challenge for the industry in the future – but again is optimistic, saying each challenge brings opportunity.

“Those 60 days the cows

are dry are critical to the rest of the year – and the highest yielding crops, ie brassicas, are not necessarily the best for the animals.

“You can’t transition cows on to new feed sources in two weeks, without interrupting rumen development.

“That’s why more people are thinking about barns, but cow behaviour and cow comfort are the key to successful barn farming – you need to have people running them that understand cows. You get away with more in pasture systems.”

While Hayden manages the practical aspects of the operation, Jessie concentrates on the office elements.

“I’m conscious that I’ve only been doing it for five years and I’ve got clean hands.

“Right from the start Hayden didn’t want me in the shed – he said my skills were better used elsewhere.

“You need to be incredibly grounded when you’re farming – it’s not only about driving around in the ute with a laptop, the office part is important but it’s not the only part.”

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Promoting excellence in farming

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wide variety of entries has been received for this year’s Lincoln University Foundation South Island Farmer of the Year competition, with meat, wool and dairy dominating the range of farm types competing.

Canterbury, Otago and Southland are particularly well represented among the entries, which include highand low-country operations ranging from a large-scale pig operation to beef cattle specialists, dairy farms, sheep (both meat and wool breeds) and deer farms. Two of the entries include a cropping component in their business.

Lincoln University Foundation chairman Ben Todhunter says interest in the competition has been steadily growing as people realise its role as a promoter of excellence in farming for the benefit of the whole agricultural sector, as well as direct benefits to the entrants themselves in terms of the independent evaluation of their business provided as part of the judging process,

competition as a way of recognising and rewarding excellence in farming in the South Island.

The foundation uses the competition to improve the performance of farming generally by promoting the knowledge and lessons that can be learned from the stories of the finalists and winners.

The overall winner receives a $20,000 travel/study grant to further their business.

Finalists are also up for four $5000 special category prizes: Lincoln University Foundation chairman Ben Todhunter believes the South Island farmer of the year competition is attractive for progressive farmers.

and the publicity that can ensure from making the finals or winning. He expects that this, too, is making the competition attractive for progressive farmers even at the beginning of new business ventures.

“This is a showcase of the very best in farming practices in the South Island,” Mr Todhunter said.

“It says something of the standard of farming, and the competition, that we are now getting such a high level of interest from farmers and/ or their nominees who feel they are at the top of their field in terms of enterprise, leadership, quality, innovation and entrepreneurialism.”

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Recognising commitment both on-farm to building a happy and productive team, and off-farm, through the strength and depth of relationships with suppliers, customers and other people who interact with the farm business.

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Dairying staff hitting the wall?

A

re your dairy personnel about to hit the wall? As we welcome newborn calves unfortunately staff burn-out isn’t met with the same fervour.

Six weeks of hard graft and extended working hours is a challenge for most dairy farmers, no matter how experienced your team is.

During calving season farmers need to cast a watchful eye over their workers to make sure they maintain work-life balance while they’re at it.

Staff burn-out can breed workforce shortages on your farm so please be vigilant to prevent this happening.

Burn-out – is it really a medical issue?

Defined as exhaustion of physical or emotional strength, or motivation, burnout results from prolonged working hours, stress or frustration.

Be aware of reduced output, lack of motivation, negative behaviour and generalised fatigue from dairy staff.

These issues aren’t what you need smack bang in your busy season.

Matt Jones

STAFF MATTERS

“We’re farmers – shouldn’t we just harden up?”

Sure, a small amount of positive stress or a challenging workload enhances short-term physical and mental function, however, ‘distress’ occurs through persistent, unresolved strain that does not help achievement and can result in illness and more sick days for your workforce.

Research obtained from New Zealand dairy farms shows a clear correlation with burn-out, disengagement, exhaustion, anxiousness and depression.

Survey results in one study showed a staggering 65 per cent of respondents had a high or very high burn-out score during this time of year.

We need to be concerned about this and acknowledge that this may be a serious and common issue in the dairy

industry, especially taking into account susceptibility with Health & Safety and animal welfare risks on your farm.

Denial and “soldiering on” when our physical or mental health is compromised during these extremely busy periods just makes us more vulnerable to winter and spring infections, and at worst genuine burn-out.

Staff will often require more than their allocated holiday time to recover properly from illness so prevention is way better than cure here.

Are these factors taking their toll? Dairy farming can be a pressurised environment

renowned for its intensive lengthy days with stressors such as extreme weather, possible isolation, increasing herd sizes, inherent farm hazards and difficult time pressures.

Put wellbeing first and your business will be just as healthy! Drained dairy farm workers could see you being caught on the hop with staff shortages, or an increased risk of frequent accidents or injuries when you least need them.

Tired and irritable staff aren’t exactly conducive to happy cows and maximum productivity. It’s in our best

interest during demanding seasonal periods to take care of our workers.

How can you beat the ambulance to the bottom of the hill? Recognise that persistent negative workrelated stress is much easier to prevent than to treat and that a little praise for work well done goes a long way.

After calving season you could allow staff more sleepins to allow them to recharge.

Also the provision of one nutritious square meal a day is a worthwhile investment to make sure staff don’t cut corners.

You could also give your dairy workers time off after calving so they can replenish their reserves and give it their maximum focus and attention.

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Energy from fodder beet

By Rensinus schippeR

F

odder and sugar beets are gaining in popularity as the crop to have grazing dry cows on over the winter. The crops are yielding in excess of 30 tonnes per hectare and provide a high energy feed. The crop can be grazed traditionally like farmers in the past did with kale. Because of the high yield, the estimated cost in cents per kilo dry matter is reduced to single digits.

Suggested feeding strategies over winter are ad lib fodder beet, with minimal supplements, or alternatively a restricted amount of fodder beet with more supplements.

Calcium and phosphorus deficiencies are recognised and, together with issues surrounding alert downer cows during calving, addressed by adding more phosphorus during early lactation and/or subsequent dry period. We are told that transition strategies are important when moving cows onto fodder beet in order to minimise the risk of ruminal acidosis. Just before

calving it is said to have no negative effect bringing the dry cow back to pasture when still feeding adequate energy levels per day to minimise the risk of lipolysis.

By feeding fodder beet in this way, we expect an increase in body condition gain between 0.5 and 1.0 for the typical 50 day winter period in order to reach the optimum body condition score value by calving time. However, what we find in the field is that rapid gain of body condition is having a negative effect on the cow regarding health and production. Strategies to gain body condition scores of between 0.5 and 1.0 during the dry period are increasing the risk of ketosis during the transition and early lactation period. Although alternative strategies to cope with these issues are out there, it is better to address the cause.

Symptoms of ketosis are: • Reduced feed intake • Lethargic behaviour • Incoordination • Reduced milk production (post-calving)

• Reproductive issues (postcalving) We know from experience that ketosis is happening on most farms to varying degrees. We also know that ketosis caused by mild lipolysis depresses intake, reduces milk production and potentially results in fatty liver syndrome.

If the cow continues to eat little, her nutrient intake will not be sufficient to meet her daily requirements, with milk fever being the result. While treating the cow for milk fever will get her back on her feet, we recognise that milk fever is not the cause, but just the result of ketosis. Therefore preventing or reducing the risk of ketosis is important during the transition period pre and post-partum.

To mitigate these issues, it is important to firstly identify if you have ketosis. This can be done by testing the blood for Ketones, B-Hydroxybutyrate (BHOB) or Non Esterified Fatty Acids (NEFA), which will indicate the level of ketosis in your herd. When you have fed your dry cows fodder or sugar beets, it is recommended

to check your herd for ketosis with a blood test.

If you have recognised that your herd has ketosis, managing this is very important as it will help your cow to cope with the excess fat in her blood and minimise the negative effect it will have on your season. Including the correct additives within the diet, and ensuring daily energy demands are met, will ensure the cow maintains her appetite. In critical cases, a daily oral drench of Mono Propylene Glycol (MPG) should be administered to ensure energy levels remain high until the cow’s daily condition loss is reduced.

Ensuring a cow is fully fed will have an optimum effect on energy absorption in the rumen, resulting in little to no excess energy being allocated or wasted, ensuring a good conversion of energy and feed.

Treatments for cows that have ketosis include an oral MPG drench for critical cases and the right supplements and additives to help cope with minimising ketosis symptoms.

All this effort and attention

is needed when cows are on fodder beet and gain condition too fast. Even though the cost of fodder beet per Kg/DM is low, the extra labour, mineral supplementation and health treatment costs reduce the benefits of feeding the crop.

Feeding moderate amounts of fodder beet with adequate amounts of supplements will have the least negative effect on the cows pre and post-partum regarding health and milk production.

In turn, a combination of fodder beet, kale and straw balances the cow’s demands in fill, energy and protein very well. You should talk to your nutritionist to assess the current state of your herd and how to get the most out of your cow’s lactation.

For more information on the use of supplements, contact the Ruminant Nutrition Consultancy team at Dairy Business Centre (NZ) Limited on 03 308 0094, email office@ dairybusiness.co.nz.

Rensinus Schipper is a Ruminant Nutrition Consultant at the Dairy Business Centre (NZ) Limited.

10

Dairy Focus

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oung Farmers from around the country will be sharpening their agricultural skills as entries are now open for the 2015 season of the ANZ Young Farmer Contest.

The season is set to launch in Taupo Friday October 3, with the first district final, Bay of Plenty, held Saturday October 4 in Tihoi.

District finals run from October to December and are the entry level for the ANZ Young Farmer Contest.

Entry is open and free to all paid members of New Zealand Young Farmers between the ages of 15-31 (entrants must be under 31 years of age at January 1). Competition hopefuls can enter online at www. youngfarmers.co.nz The ANZ Young Farmer Contest is New Zealand’s Ultimate Rural Challenge. It inspires excellence, showcases the innovation and growth in the agriculture sector and helps develop young kiwi farmers become the leaders of tomorrow.

Contestants of all skill levels are encouraged to enter to improve their personal and agricultural skills.

“The District Finals are such a good opportunity to test yourself against your peers, but also in an environment where fun and enjoyment is also high on the agenda,” New Zealand Young Farmers CEO Terry Copeland said.

“I am really looking forward to seeing the amazing array of skills and ability many of our Young Farmer members have during the 2015 ANZ Young Farmer Contest season,” Mr Copeland said.

The top eight district final competitors from each region will go through to their regional final and battle it out for their share of the $14,000 worth of prizes. The top performer at the regional level will earn a spot at the Grand Final where they will vie for the coveted title of ANZ Young Farmer Contest Champion and a piece of the $117,000

Hinds Young Farmer James Davidson competes in this year’s competition.

prize pool.

The seven grand finalists, one from each region, will meet in Taupo July 2-4 for a gruelling few days of competition where contestants will be put through a diverse range of practical, theoretical and technical challenges covering all aspects of agriculture including an HR challenge and a business presentation. The Grand Final culminates in a livetelevised quiz show.

The contest not only offers cash prizes and products from ANZ, Ravensdown, Silver Fern Farms, Honda, Vodafone and Husqvarna there are also several scholarships and awards for career development programs from AGMARDT and Lincoln University.

• For more information visit www. youngfarmers.co.nz Or contact contest@youngfarmers. co.nz

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2 12

Farming Dairy Focus

www.guardianonline.co.nz

Top season at Thompson By cushla Williamson

C

ommunication is the key to making equity partnerships succeed say Canterbury dairy farmers Wim and Carla Verberne.

The Verbernes are this year’s recipients of the MyFarm Farmer of the Year award, for their work as equity managers on Thompsons Track, a 225ha property syndicated by MyFarm in 2012.

The title attracts strong competition amongst the managers of MyFarm syndicated farms, with criteria based on production figures, financial management, communication, innovation and leadership.

As well as acknowledging the couple’s strong communication and leadership skills, MyFarm director Grant Rowan says their prudent financial management has also been recognised.

“They ensure they have secured the best deal for each and every purchase, constantly monitoring their financial

position against budgets and ensure spending requests will give the best return to the syndicate,” he says.

Typically modest in his acceptance of the accolade, Wim says the award is a reflection of the team he has built up, the support he has received from MyFarm and

the respectful relationship between himself and the shareholders and chairman of the syndicate.

“If communication breaks down with any of these three parties, you just won’t get anywhere,” he says.

He meets with the syndicate chair, Malcolm Paterson,

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monthly to discuss budgets, feeding regimes, stock issues and production figures and this information is then fed back to the board.

“We are very fortunate that our board recognises and values our experience and trusts us to make the right decisions.”

Wim says this is particularly important at Thompsons Track, a relatively high input farm, where target feeding is a primary management practice.

MyFarm agribusiness manager Felix McGirr has worked with Wim for the past two years in his role as the syndicate’s dairy nutritionist.

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13

ns Track recognised Top team: Veronika Czech-Fouda, Felix McGirr, Wim and Carla Verberne, Malcolm Paterson and Mark Varias.

Photos Gina Buckley 310714-GB-022

Using herd test results, Wim and Felix separate the cows into six feed groups based on energy corrected milk yield.

Custom blended feeds are then designed for each feed group – with some cows receiving 3.5kg of supplementary feed and others requiring none. At no time does the average for

the year exceed 2.2kg per cow.

The pair meets each fortnight between September and May to formulate new plans based on the individual cow’s milk production.

“We target the cows using the information from the Protrack system and feed extra or less if required,” Wim

said. And they have to get it right.

“You could lose $1000 a day by not utilising the feed correctly.”

The effect of a targeted feeding regime is reflected in Thompsons Track’s production figures – 420,000 kg/MS – a 12 per cent rise on

the previous season. Their 815 cows produced 1961 kg/ MS each for the season.

This season’s total production target has been set at 425,000 kg/MS. “With the current volatility in milk price, this season we are taking a cautious approach and keeping our production

Cows left you in a mess?

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Thompsons Track is the Verbernes third equity partnership and their first within a corporate structure.

Wim says as equity managers they tend to want to outperform regardless and there is certainly a vested interest in making the business profitable.

“We love the industry and New Zealand has certainly provided the opportunities we thought it would when we arrived here from the Netherlands in 1987.

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Farming Dairy Focus

from previous page They began on the traditional path to farm ownership – firstly in the Waikato as employees, then managers, followed by 50/50 sharemilking. In 2001 they made the move south and after a further year 50/50 sharemilking, entered into their first equity partnership in Mid Canterbury.

“But even when we were 50/50 sharemilking we treated the farm as our own – we have always done this.”

The couple work to their strengths. While Wim has his eye on the cows and the financials, Carla’s five years of experience in a legal office is put to good use with reporting requirements. She now works part time at the Ashburton Library, but come calving time she oversees the calf shed.

“We like to keep close to what is happening,” Wim said.

Carla has also implemented Synlait’s Lead with Pride programme, with two senior staff, Mark Varias and Veronica Czech Fouda, who have been empowered to develop and implement the programme from an operational perspective.

Both arrived in New Zealand with extensive experience in intensive, indoor farming systems – Mark in Saudi

www.guardianonline.co.nz

310714-GB-016 Above – Top staff: Veronika Czech-Fouda and Mark Varias.

Right – Top farmers: Wim and Carla Verberne.

Arabia and Veronica in Poland and the US. Wim is full of praise for the pair. “They have embraced what are very new ways of farming – they also have a great attitude and desire to learn.”

He says farm owners have a responsibility to guide, educate and support their staff in the industry – even though it takes time to explain why and how things should be done in a certain way.

“But Carla and I now have a

balance in our lives, through being able to trust our staff and knowing the farm is always in good hands.”

For Wim and Carla, this new season is ‘business as usual’, with Wim firmly focused on the profitability of the business. He says the award has been a great endorsement of what they do.

“It shows we are on the right path regarding the management of the team and the management of the partnership.”

310714-GB-012

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15

Some good news for A2 company

T

his month The a2 Milk Company will release their full year financial results.

Not much is expected in the way of profit, however many will be looking hard at the result to see how a2 is tracking in its key international markets of Australia, the UK and China.

For those unaware, The a2 Milk Company produces a premium priced differentiated milk product that contains only the a2 protein.

The company’s intellectual property enables the identification of cattle and the production of milk that does not contain the a1 protein (the a2 protein remains).

There is mounting evidence that milk without the a1 protein is easier for many people to digest.

The share price for a2 has had a wild ride over the past few years rising from 10 cents at the start of 2011 to peak at 97 cents in February this year.

However, push back from a2’s competitors in Australia and a delay in getting regulatory approval to export to China

Grant Davies

A BROKER’S VIEW

both conspired to damper the growth expectations of the business. This uncertainty saw the share price drop to recently trade at 67 cents.

Australia has been a happy hunting ground for a2, growing their market share to over 7 per cent by value. This has not endeared a2 to their competition who have been fighting back by questioning the science behind a2’s digestive claims.

The a2 Milk Company scored a hit against their competitions recently with the release of a study in The European Journal of Clinical Nutrition providing evidence of the digestive benefits of their product.

This was the first human trial, and although the sample size was relatively small, the

results were positive from a2’s perspective.

Another great positive for a2 was the recent thumbs up they received from regulatory agencies in China, allowing them to resume shipments of their a2® Platinum™ infant formula.

The demand for milk in China has been growing rapidly, representing a huge opportunity for a2, particularly given the differentiated nature and apparent digestive benefits of their product.

Although it can resume shipments, a2 is still waiting for the Ministry of Primary Industries to approve the risk management plan of their production partner Synlait Milk. Synalit expect to have this approval very soon.

Investors looking for exposure to the rapidly growing demand for infant formula in China should have a very

close look at The a2 Milk Company.

Much of the uncertainty over the past few months has abated, although those wanting even more certainty can wait for their full year result to come out later in the month.

• Written by Grant Davies, Authorised Financial Advisor at Hamilton Hindin Greene Limited. This article represents general information provided by Hamilton Hindin Greene, who may hold an interest in the security. It does not constitute investment advice. Disclosure documents are available by request and free of charge through www.hhg. co.nz.

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8/14/14 3:11 PM

Farming Dairy Focus

2 16

www.guardianonline.co.nz

Open day for Synlait suppliers a success

N

early 150 Synlait milk suppliers attended an open day in July to see what happens to their milk once it leaves the farm.

The open day aimed to help those involved in milking understand how milk is processed into a range of specialty powders and exported worldwide.

Michael Woodward, who manages 19 staff across two dairy farms that supply milk to Synlait said it was import that his team understood where they fitted into the process.

“The open day illustrated

that really well, they all commented how worthwhile it was to see everything from where the tankers unload our milk to where the bags of milk powder are put on a pallet, ready to be shipped overseas,” he said.

Suppliers were given a comprehensive tour of the plant and heard from key staff in six areas of manufacturing.

Several capital investment projects, driven by Synlait’s customer demand, proved popular talking points. One interesting project was the construction of a third spray drier, known as D3, which will

expand Synlait’s processing capacity by 50 per cent once operational in August next year.

“Seeing existing infrastructure, as well some projects under construction, is a clear indication of where Synlait is going,” Mr Woodward said.

The recently completed canning and blending facility was also highlight of the tour.

Commissioned to give Synlait supply chain integrity from source to package, the new facility prompted conversations about the importance of food safety and the quality retained

throughout Synlait’s manufacturing process.

“We were amazed to learn that once milk leaves the cow on the farm, it won’t be handled by anyone until a mother opens a can at home.

It’s really sophisticated, I don’t think it gets any better than that,” said Mr Woodward.

“We invest a lot of time learning about our suppliers’ farms and how we can help them produce the best milk possible,” said David Williams, Milk Supply Manager for Synlait.

“Showing farm teams the journey of their milk once it

leaves the farm gate creates an appreciation of why we need such high quality milk in the first place.”

A large focus for Synlait is building strong relationships with suppliers, which is why the recent supplier conference in July concentrated on the destination of milk products in overseas markets.

“We knew our suppliers wanted to learn more about our customers, so we put them in the same room to learn all about the needs of our customers who purchase Synlait products,” said Mr Williams.

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17

Tried, tested and proven B

efore a single Pacific Seeds hybrid makes it through to commercial New Zealand release the company really puts it to the test. Starting with an international selection process that spans the globe – followed by at least three years

of demanding and closely monitored trials within the New Zealand environment.

“So if they are on our commercial hybrid list – you know they’ll deliver,” said Pacific Seeds' territory manager Barry Smallridge.

Pacific Seeds maize hybrids

are bred to deliver strong performance across the following categories.

• Dry matter yields and grain yield/quality.

• Yield stability (across environments and seasons).

• Agronomic traits (standability, drought and

disease resistance).

“That’s why short season hybrids like PAC 065 and 062, which are ideal for the Canterbury region, have performed so well over the last three seasons,” said Barry.

“Both these hybrids have had exceptional endorsement

“If you’re looking for maize hybrids that consistently deliver - whatever the conditions Pacific Seeds has got you covered.”

Tony Schoy

Mid Canterbury

During the past 3 years PAC 062 has proven to be an excellent performer for shorter seasons with yields.

It really suits this region with yields up around 22.8 tonnes/ ha and excellent cob to stover.

TRIED, TESTED, PROVEN: Pacific Seeds maize hybrids are bred to deliver strong performance across the following:

from our growers in this region for yield as well as silage/grain quality.”

PAC O62 is a dual-purpose hybrid that is well suited to cooler environments. It produces outstanding grain quality and High Test Weight.

Tony Schoy has been growing PAC 062 for the past three seasons and it has proven to be an excellent performer during this time.

“It’s a big tall hybrid with good sized cobs and being able to plant it at a lower population rate is an extra benefit,” he said.

“Since we’ve been planting it our yields have been up around 22.8 tonnes/ha, with good moisture content and the high cob to stover ratio that we need for quality silage”.

PAC 065 is a dual purpose, new generation hybrid that produces large cobs with glossy, medium/hard (semident) grain. It has good root and stalk strength and exceptional dry down.

“During the last season, despite the less than ideal conditions, growers were still averaging very good yields from this hybrid,” said Barry.

Pacific Seeds' commitment to New Zealand growers ensures that they are provided with hybrids well suited to meet their specific performance requirements and this season’s range is no exception with proven maize hybrids across all maturities.

• For the full Pacific Seeds range of hybrids visit www.pacificseeds.co.nz or contact Barry Smallridge 027 494 7706.

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2 18

Farming Dairy Focus

www.guardianonline.co.nz

Remember to play occasionally B

usy, so busy.

You know when you get to the stage where you have so many projects on the go, an ever-growing checklist, an energetic toddler and you run around like a headless chook all day from job to job, only getting bits of everything done?

This is how my life seems to be playing out right now, especially on a Monday like today where I’m playing catch up from the weekend (then the washing machine overflows and pours litres of water all through the laundry and kitchen). Oh, and being 28 weeks pregnant hasn’t helped! So with, what feels like an expiry date, approaching, I have 12 weeks to get everything to a place and to a manageable pace.

With calving in full swing, I can guarantee I’m not the only one feeling like this, am I right? What do YOU do to retain some control over everything?

Today I should have gone for a walk. Instead I surrounded myself with paper, pens, a computer, an endless Word

Chanelle O’Sullivan

FACE TO FACE

document and a grumpy wee girl wanting to be entertained.

Tomorrow I’m going to make a conscious effort to step away and do something physical which is therapeutic for me. (Whereas if you are amongst calving I would recommend sitting in front of some TV with a latte).

I am starting with a bank appointment, then to a baby group where my mind is off the farm; followed by a caramel frappe for me and a chocolate frappe for Miss 2.5. Home by lunchtime and ready for a busy afternoon in the garden!

I have onions to start raising, 10 rows of potatoes to dig, four rows of carrots to thin, 40 garlic bulbs to replant and 30 strawberry plants to find homes for.

What I am really trying

Take a break and get off the computer.

to say is, make time to do something you don’t have to think about. Just half an hour.

Before getting pregnant I got up before hubby went to work each day and smashed out a 4km run – No toddler, no husband, no technology, just me, the dog and the sunrise, and boy do I miss that.

So when the house is a mess, the kids are fighting and there

is washing in every stage of completion, get outside!

Raining? No problem – that’s what wet weather gear and jackets are for, take the bikes, the pram or the front pack and get outside! I have said it before and I will say it again, speaking as an ex-Aucklander – make most of your rural setting!

And something else I have

heard numerous times lately “don’t let her grow up too quick” – hang out with your kids. Spend TIME with them and get down to their level – and, in my case, get off the computer!

No kid ever remembers that “amazing” day spent in front of the TV, there is no time like now to make some memories.

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www.guardianonline.co.nz

19

Reminder to women in rural business W omen looking for new ways to promote their small rural business are encouraged to enter the Enterprising Rural Women Awards 2014.

“With the deadline of Friday, September 5, now around the corner, we’re reminding women to send in their entries,” says Rural Women New Zealand national president, Wendy McGowan.

In their sixth year, the awards attract good publicity for both entrants and winners, says Mrs McGowan.

“Rural Women New Zealand’s aim is to grow dynamic rural communities and giving a boost to women in rural business is a very positive way of achieving this.”

Last year’s winner, Diane Coleman of Treeline Native Nursery, urges women to enter, though she says she needed encouragement to do so herself.

“Don’t be afraid to go out on a limb, because that is where the fruit is,” says Diane.

“Winning this award has

Above – Wendy McGowan.

Left – Diane Coleman.

been a once in a lifetime opportunity that was challenging, exciting, scary, fun, humbling and has really put my business on the map.”

The awards attract diverse entries, and past winners include a traditional-style cheese maker, a farm walk and homestay enterprise, a forestry trucking company, and a merino sock manufacturer.The award categories reflect this diversity:

• Love of the Land sponsored by Agrisea – for all land-based business, from animals to agriculture.

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• Stay, Play Rural sponsored by Xero - for businesses engaged in rural tourism or hospitality.

The Enterprising Rural Women Awards 2014 are open to small businesses with 10 full-time staff or less that have been operating for at least two years. If in partnership, women must be an active partner of 50 per

cent or more. Past entrants are welcome to enter again.

Each category winner will receive $1000 and a trophy. They will go on to compete for the Supreme Award 2014, which will be announced at the Rural Women New Zealand national conference in Rotorua on Saturday 15 November.

Entry forms and further information can be found on the website www.ruralwomen. org.nz.

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Farming Dairy Focus

2 20

www.guardianonline.co.nz

Vets passionate about dairy industry T he team at Dairy Vet Services is passionate about the dairy industry.

Nathan Back and Anna Tarver have been in business in Ashburton for about a year and a half now, and during that time their son Henry was born.

“We both grew up with a passion for dairy farming. For me it was a toss-up between farming and vetting when I was young. My dairy farming parents steered me towards vet!

“When I first graduated as a vet I worked in mixed practice for the first few years and then I found my interest for dairy work flourished and I decided to concentrate on that,” Anna said.

Nathan was also interested in dairy farming from a young age, and worked on large dairies in the USA and Australia before studying veterinary science.

The couple chose to settle in New Zealand as a compromise, between Nathan’s homeland Australia, and Anna’s in England.

“Nathan couldn’t hack long

“

cold English winters! Having settled here we couldn’t imagine working anywhere else,” Anna said.

“Working with such progressive dairy farmers makes the job so enjoyable.

Canterbury’s irrigation means a lot of variables are taken out of the equation and farmers can focus on maximizing productivity – this means they have a great attitude to new ideas and different ways of doing this if they can see the

financial returns.

“There are some exceptional farming people and the opportunities within the rural industries around the district are second to none.

“It has been a steep learning curve in terms of running the business – the vet side of the business was something we were used too but we initially had to wear lots of different hats from office admin, reception, stock control, HR as well as be vet technicians and

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do veterinary work! But we felt that that was important to really understand how our business is run. We are now lucky to have some great support staff and have been able to pass on a lot more of that work.

Nathan and Anna’s philosophy is to help farmers maximize the bottom line through being proactive and focused on all the areas of the farm that affect their business.

“In the short term we try

The team at Dairy Veterinary Services have the experience and attention to detail that has proven valuable to our dairy business.

to troubleshoot problems and find practical solutions to the challenges on that farm.

If we do this and have good attention to detail then the rest generally falls into place.”

“We have a low client-to-vet ratio so we have the time to really get to know how things work for that particular farm.

Also by having a small team by default we know what’s going on with clients.”

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“The decision to contract the services of Dairy Veterinary Services has proved invaluable for this business. We are confident that our girls are in the best hands when it comes to veterinary services thanks to Dairy Vet Services.”

Steve Viex, 2000 cows, Dorie

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2 22

Farming Dairy Focus

www.guardianonline.co.nz

Ashburton businesses shine at awards B usiness growth and excellence was recognised and celebrated at the annual Ruralco Supplier Awards in Ashburton recently, with local businesses scooping the pools and taking out the four major awards of the evening.

Around 250 Ruralco suppliers attended the prestigious event vying for a variety of awards. Group CEO, Neal Shaw, said it was a great way to recognise the growth, development and use of Ruralco since it was established just over a year ago. He said despite the growth of Ruralco, which is now South Island wide, it still retains a community focus and continues to add value to farming communities.

The Supreme Supplier Award winner was ElectraServe, which was recognised for its positive promotion of the Ruralco relationship, its strong customer relationships and excellent customer service reports. In accepting the award, general manager Blair Watson said it was a reflection of the company’s great staff

Dean Crossan, Smith & Church + Beds; Peter and Toni May, Peter May Ltd; Neal Shaw, group CEO of ATS and RuralCo NZ Ltd; Allanah and Blair Watson, Electraserve.

that get on with the job and work hard for their customers.

Also highly sought after was the Members’ Choice Award, which goes to the Ruralco

supplier with the most nominations from cardholders.

Smith and Church Appliances + Beds won the award which sales manager Dean Crossan

CONGRATULATIONS

described as a huge accolade.

“It’s the award we wanted – it’s recognition from our customers.”

Last year’s winner of the

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Property Brokers Ashburton Rural team.

BEST IN THE COUNTRY!

Supreme Supplier Award took out the Excellence in Marketing Award, and it was promotion of the previous success which contributed to the win. Canvas fabricator, Peter May Ltd, was commended on its creative flair in all marketing and its willingness to go the extra mile in promoting Ruralco.

Peter and Toni May were delighted to receive the award and said they had a real passion for Ruralco which was easy to share with their customers.

The Emerging Business Award recognised business growth, customer service excellence and forward planning. This year’s winner, Methven Pharmacy, displayed all of these attributes, making it a worthy recipient of the award.

In addition to the four main awards, 17 Business Growth and Development Awards were presented to Ruralco suppliers, representing a wide variety of categories. These awards recognised the highest percentage of growth relative to turnover within their category.

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23

Wagyu ramps up dairy options S trong global demand for premium Wagyu beef has created an opportunity for dairy farmers to share in the returns this spring.

Firstlight Wagyu managing director Gerard Hickey recently returned from visiting markets in United States and Europe, buoyed by the positive feedback and strong sales figures his company’s grass–fed Wagyu is enjoying there.

In response to the positive market conditions, Firstlight Wagyu has ramped up its supply of bulls and semen for artificial breeding (AB) this spring.

The company has built a base of 70 beef farmers who grow and finish the cattle, renowned for their marbled beef and high quality eating experience.

“However every beef supply chain has to start with calves, and we want to get more calves on the ground next spring to meet this growth in the market. The dairy sector is an obvious and well suited means to achieve that relatively quickly,” Firstlight

Firstlight Wagyu supply chain manager Peter Keeling with two–week–old Wagyu cross calves.

Wagyu supply chain manager Peter Keeling said.

Wagyu calves typically have a lighter birth weight and are easier calving than traditional beef breeds, bringing some welcome advantages for farmers seeking a low stress, non replacement breed to put over their cows or heifers.

Mr Keeling said that appeal translated to the back pocket, given Firstlight Wagyu’s guaranteed premium and contract to purchase both Kiwi and Friesian -Wagyu cross calves at four days old.

Last year’s premium price averaged $100 a mixed sex calf from AB mating.

Indications are this year will be similar.

The premium on the calves opened up options for farmers who may want to be selective about what cows they mate to dairy AB this spring.

“You get the chance to have your cake and eat it with the Wagyu calves, focusing on

your dairy genetics, and still having a non-replacement calf that is of value for the cows you may not want replacements from. This is something that a Kiwi cow dairy farmer may not have had available before.”

Synlait Farms has adopted the breed into its mating policy. This spring it has a herd of 800 lower milk producing cows combined into one herd mated to Firstlight Wagyu AB genetics.

Using Wagyu bulls or AB genetics over first mated heifers this spring was another option proving popular with farmers wanting an option to low value “bobbied” calves, and the easy calving attributes added to the bulls’ appeal.

“Our experience has shown dairy breeds including the Kiwi cow cross can produce high quality marbled beef, so mating them with Wagyu sires provides an excellent source of high-marbling beef.

“It also gives dairy farmers a unique opportunity to be part of the Wagyu supply chain, and address calf wastage in the sector.”

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Farming Dairy Focus

2 24

www.guardianonline.co.nz

Oceania Dairy gets first lot of milk O

ceania Dairy’s new $214 million Glenavy milk processing plant has received its first intake of milk from South Canterbury and North Otago farmers.

The milk will be used for the next stages of the plant commissioning as the 14 -month construction programme draws to its conclusion.

The initial plant testing has been completed using water.

The final six weeks of commissioning and performance testing will now be undertaken with milk before the final handover of the factory from construction to production by the middle of September “This is a landmark day for Oceania Dairy Limited, for our supply farmers and for the district,” said Aidan Johnstone, chief executive officer for Oceania Dairy.

“The factory represents the factory is a real milestone million litres in the 2014-15 a significant investment by in the evolution of the dairy season.

Oceania’s owners, Yili, which 20X2 industry in the region,” he At full capacity, the COL will have an ongoing impact (74X200MM) said.

Glenavy processing0% plant SZM0084 KINGQUAD on the rural economy of the A total of 48 suppliers will be capable of processing 2 COL region. have signed contracts with 300 million litres of milk Oceania for the supply of 170 per year, generating 47,000 0MM) “The first intake of milk at

Above – TetraPak process engineer Jasneet Kaur.

Left – Foundation suppliers Aad and Wilma van Leeuwen.

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Oceania Dairy’s staff numbers at the Glenavy factory site have reached 65 as the company moves into the commissioning and testing process.

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25

Pre-season checks worthwhile I

t will not be long before pumps start up and irrigators are set in motion. So if you have not already done so you may want to consider a quick irrigator WOF check to make sure you get the best out of this critical piece of farm infrastructure.

It may also be worthwhile evaluating if your irrigation system can be improved to save on costs such as water or energy.

Simple pre-season maintenance checks are able to be done by farm staff. A basic inspection while the irrigator is turned off can help assess if you will require service work to be carried out. It is recommended to park the pivot in an accessible position and ensure that the electrical isolator switch is locked to prevent accidental starting.

Whoever is carrying out the checks needs to be aware that centre-pivots are generally high voltage electrical systems, so leave all electrical checks to a qualified Service Technician. If there is a need to work at heights make sure you have safe equipment to do so.

A pre-season maintenance check of your irrigator will help avoid costly downtime during the summer. Long term water and energy cost savings are also possible with technologies such as Growsmart Precision VRI, which can reduce nutrient leaching as well.

A walk up the length of the machine will allow you to assess any damage and parts requiring repair. Tighten, replace or makes notes so you can inform your irrigation dealer. Greasing of all the grease nipples as you go is recommended to help reduce problems for the upcoming season, important parts to maintain well-oiled are the pivot point, gear boxes and drive shafts.

The uniformity of a centre pivot relies heavily on the correct sprinklers being fitted

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to each dropper, checking that the sprinklers installed match the sprinkler chart will allow your pivot to apply the specified application rates. Free any sprinklers that have become tangled over the truss rods.

It pays to check that the tyres are pumped up to their optimum pressure rating. As tyre pressure is critical not only for the life of the tyre, rim and gearboxes, but also the application rate.

Once you have made thorough checks with the pivot stationary, providing

there are no required repairs, the next step is to run the pivot. This is ideally done when the soil is not too wet so that you don’t create wheel ruts, or worsen those that need attention. Wheel ruts significantly increase the load and wear on the drive train so should be dealt with when possible. GrowSmart Precision VRI technology can be used to reduce the spray onto the wheel tracks to help minimise wheel rutting.

Obvious checks while running the pivot are leaks, some of these may be able to be fixed with simple repairs such as replacing droppers.

While walking the length of the irrigator listen for excessive vibration or noise that may indicate issues on the towers motors, gear boxes and drive shafts.

Some component wear will depend on water quality as high concentrations of iron, suspended solids and grit can increase degradation of parts.

A yearly check is advised to ensure that worn sprinklers and pressure regulators are replaced to maximise

the efficiency of the pivot.

Common causes to check for are blockages or damages from knocks, missing sprinklers and spray plates.

At the end of the irrigator remove the sand trap cap (with the irrigator turned off) and flush the system to get rid any sediment build up, this is very often common in the overhang. If your water supply has a high level of sediment than it is recommended that this is done regularly.

Reducing the risk of breakdowns during the irrigation season will help avoid production loses due to downtime for repairs. Long term water and energy cost savings are also possible through the installation of technology such as variable rate irrigation, which can reduce nutrient leaching as well.

If you would like more information on recommended maintenance checks for your irrigator or technology to improve water use efficiency call your local GrowSmart by Lindsay Dealer.

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2 26

Farming Dairy Focus

www.guardianonline.co.nz

Irrigatio Y

es it’s that crazy season again – calving – when dairy farmers wonder if they’ll get to have a cup of tea in peace.

But even when it’s busy, farm advisors recommend setting aside regular time to review your operation, including assessing future risks and opportunities.

Irrigation New Zealand is with them on this – you simply can’t afford to stop planning just because calving is here.

To make it easier to work out your next irrigation requirements and identify obstacles, Irrigation New Zealand has created an information and training event called the Great Irrigation Challenge. It came about as a response to farmer and industry requests for greater access to experts to help irrigators respond to increased regulatory pressures and understand new technology and farming recommendations.

The Great Irrigation Challenge caters for both existing irrigators, looking to up-skill and expand, and dairy support and dryland farmers,

Learning new skills at an Irrigation New Zealand workshop.

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27

on workshops return to Mid Canty

“

The Great Irrigation Challenge caters for both existing irrigators, looking to up-skill and expand, and dairy support and dryland farmers covering issues relevant to irrigation development

covering issues relevant to irrigation development. The event has a strong focus on practical and technical solutions to make life easier for dairy managers and farm staff operating irrigation.

So why should you register?

If you are irrigating or considering irrigation, you need to know what’s happening with Nutrient Budgets, Farm Environment Plans and the roll out of regional plans. You also need to be aware of new standards and codes of practice for the industry. The Great Irrigation Challenge covers all these topics and more. As a dairy farmer or industry investor, sharemilker, farm manager or staff member, your livelihood and business continuity more than ever requires a high level of knowledge, expertise and skill.

With the support of principal sponsor Aqualinc the Great Irrigation Challenge

will run over two days – Thursday 2 and Friday 3 October – at the Hotel Ashburton. Expert presenters from across the country will join Irrigation New Zealand staff in presenting the latest technical, environmental and best practice advice for irrigators. There are 16 workshops on offer with topics as broad-ranging as Reducing your Energy Bill, Managing Farm Irrigation Infrastructure, Building Irrigation and Effluent Storage Ponds to Farm Environment Plans. And to make it even easier to get there, you can attend several workshops or just one or two if time is tight.

This is Irrigation New Zealand’s second Great Irrigation Challenge with additional support this year coming from ANZ Bank, Environment Canterbury, Nelson Irrigation Corporation

of Australia Pty Ltd and EECA. Further information including registration details can be found on www. irrigationnz/co/nz/eventsand-training or by phoning (03) 341 2225.

If you can’t get to the Great Irrigation Challenge, two further irrigation workshops are scheduled for Ashburton for October 9 and 10.

Irrigation New Zealand’s Irrigation Operator and Management Training workshops target farm staff managing and using irrigation on a daily basis, as well as farm owners wanting a refresher of the latest irrigation advice.

Combining classroom learning with in the field application, the oneday workshops are both practical and interactive.

Comprehensive resources provided at the end of the day assist further learning.

Irrigation New Zealand CEO Andrew Curtis says the workshops outline the fundamentals of ‘high performing irrigation’.

“Those attending will leave the workshop knowing the core knowledge and skills to help streamline irrigation procedures so that problems can be minimised and farm profitability maximised.”

Four modules are covered on the day including Irrigation Regulation, Scheduling, Operation and Maintenance, and Calibration.

For more information visit www.irrigationnz.co/nz/ events-and-training or phone Irrigation New Zealand on (03) 341 2225.

The Irrigation Operator and Manager Training workshops have been designed by Irrigation New Zealand with support from DairyNZ, Primary ITO, ANZ Bank and Agstaff.

Andrew Curtis

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Farming Dairy Focus

2 28

Laying-down time the health of your T

here seems to be fewer lame cows so far this season compared to the two previous seasons.

Why is that? Some people may be thinking that the money they spent on their tracks over the winter is already paying off.

Maybe it is, but I would like to direct your attention to another possibility.

Last month I talked to you about the effects of the track and how it can put a lot of stress on cows by reducing their resting time.

Let’s go with that train of thought for a bit. Did your cows get the rest over the winter that they needed?

Many of you may think this to be a ridiculous question as all the cows did was spend time in the paddock, so of course they got all the resting that they needed. Is that true?

When cows are in the paddock for a whole day, does that mean they can automatically get the rest they need? I would argue that they don’t.

This is especially true when cows are on winter crops. Have you noticed that cows do a lot more standing in crop paddocks than on dry grass paddocks?

Fred Hoekstra

VEEHOF DAIRY SERVICES

If you drive through the countryside in the winter after a shower of rain, you will see most cows standing up in crop paddocks? Fair enough. I wouldn’t like to lay down in the mud either.

So if you look at this winter where the weather was a lot warmer and dryer, cows would have had more resting time.

Remember that resting time is layingdown time.

Standing time is NOT resting time. So if cows had more resting time over the winter they would be less likely to come in lame after calving. And I believe that this is what we are seeing. So what can we learn from this?

I believe we need to farm in a much more cow-friendly manner. It is my

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vital for cows belief that most farms are not set up or managed in a particularly cow-friendly way. I don’t have a problem with feeding cows winter crops.

They are probably good food for them and cheaper for the farmer, but we do need to keep the basic needs of the cows in mind.

One of the basic needs for a cow is to have sufficient laying down time.

If we have cows on winter crops then we need to be prepared for the times when we do get rain. This may mean that we could harvest some of the winter crops and feed it out in a paddock of grass that is dry enough for the cows to lie down in.

I know it costs more money to dig up the fodder beet, but if that means fewer lame cows in the milking season then that money will come back. Even if it didn’t, is it not our responsibility to look after our cows?

If we want to keep our cows then let’s be proactive in ensuring their basic needs are provided for!

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Farming Dairy Focus

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Getting New Zealand agriculture P

riority must be given to policy and regulatory settings that improve market access for New Zealand exporters, with a heightened focus on the negotiation of Free Trade Agreements and building business-to-business and government-to-government working relationships, according to a new report by global agribusiness specialist Rabobank.

Further leveraging New Zealand’s world class production and supply chain systems is also of utmost importance, the report says.

Releasing the research report, Competitive Challenges – Getting on the global market access ‘VIP’ list – Rabobank animal proteins analyst Matt Costello says improving market access is critical for the future growth and success of New Zealand agriculture, given the importance and reliance on exports across all sectors.

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on the global access VIP list “New Zealand remains the envy of most countries, having already achieved an FTA with China, the world’s largest importer of agricultural products,” Mr Costello says.

“It is important that New Zealand reaches an agreement with Korea and negotiations through the Trans Pacific Partnership agreement progresses.”

However, Mr Costello says improving market access through FTAs is only half of the equation.

“Political and regulatory risks remain in the form of technical trade barriers (TTBs), which are often high for agriculture and can be difficult to resolve,” he says.

“These barriers are also less transparent than tariff barriers and can have a greater impact on trade flows.”

Mr Costello says the successful negotiation of FTAs with emerging markets should be a stepping stone to building and improving relationships in

order to prevent and address TTBs, as having strong relationships on the ground in the market is vital.

New Zealand to target emerging markets

The Rabobank report says that ratifying the Gulf

“

the value of New Zealand’s exports to the GCC has increased over time, with exports in 2006 valued at $NZ653 million and by the end of June 2013, this figure had doubled to $NZ1.3 billion.

“As New Zealand and the GCC progressively introduce lower tariffs, it is likely that

Political and regulatory risks remain in the form of technical trade barriers, which are often high for agriculture and can be difficult to resolve

Cooperation Council (GCC) should be seen as a key priority for New Zealand agribusiness as the growth potential is undeniable. The GCC, led

by Saudi Arabia as the most important trade partner, comprises six member states – including Bahrain, Oman, Kuwait, Qatar, United Arab Emirates. Mr Costello says

this figure will continue to rise, representing an even larger share of New Zealand’s total exports,” he says.

“A large segment of this growth is likely to come from the dairy industry and sheep and beef sectors. Most of the potential surrounds the rising trade expectations with Saudi Arabia, although the flow-

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Mr Costello says the dairy industry would be the biggest beneficiary of a reduction in tariffs, with New Zealand exporting $NZ424 million worth of dairy product to

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Developing future trade opportunities Possible next steps for government, industry and commercial organisations include the removal of technical trade barriers, establishing close working

business relationships and leveraging business opportunities bilaterally with companies that have greater market access.

Mr Costello says it is vital to promote New Zealand’s rigid food safety systems as a means of navigating technical trade barriers.

“Partnering with other companies offshore that have a local footprint to smooth and increase trade flows, prevent TTBs and promote the brand and story of the product is key,” he says.

“A continuing commitment to supply chain integrity and product quality remains the key differentiator supporting trade and global market access for New Zealand’s food and agricultural products.

“In particular, New Zealand’s premium brand of clean, green, disease-free and transparent products alleviates food safety and traceability concerns, which can often lead to trade restrictions in foreign markets, as has been experienced on various occasions by competitors such as Brazil, the US, and India.”

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Farming Dairy Focus

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SC wat T

he community’s recommendations for water quality and quantity in the South Coastal Canterbury area were received

by Environment Canterbury commissioners at its council meeting on August 7.

David Caygill, the Environment Canterbury Commissioner with particular responsibility for water, said the recommendations represented very considerable progress in water management in the area which included Waimate and Wainono Lagoon.

“The Lower Waitaki South Coastal Canterbury zone committee has worked closely and collaboratively with community members over many months to provide more detail on how nutrient limits should be set and allocations decided.”

The addendum aims to

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ater managment proposals improve the health and mana of Wainono Lagoon, increase tributary flows over time, while at the same time increasing the amount of irrigable land.

“The work reflects the need to address not just nitrates, but also phosphorus and sediment issues which are being dealt with through farm environment plans.”

The recommendations are set out in the Lower Waitaki - South Coastal Canterbury Zone Committee’s Zone Implementation Programme Addendum – it covers nutrient limits and freshwater flows in the area from Morven Drain to the Otaio catchment.

“We have been heartened by the level of interest and spirit of discussion during this process and it shows a common ground can be found among the competing demands for water.”

ZIP Addendum – key points

The ZIP Addendum includes recommendations for rules (regulation) as well as for improved land-use practices, which together should improve water outcomes in the area.

In the northern streams the addendum aims to improve flows and habitat over time and protect water quality.

A package of actions to achieve these outcomes have been developed and these include supporting catchment groups, working with the community on sustainable land-use practices, managing water allocation, securing the future of the Waihao Box, and realising gains from the Wainono Project.

The Wainono Project and augmentation of Wainono Lagoon enable land users to

stay within good management practice requirements on their discharges for nitrogen.

Two irrigation schemes are consented in the area (Waihao Downs and Hunter Downs Irrigation) and a nitrogen allocation is provided for both schemes.

During the development of the draft addendum a community-led nitrogen allocation reference group was also formed to develop nitrogen allocation options that provide more flexibility for low-emitting land uses (within the load limit that delivered the water quality outcomes). The framework developed by this group is now part of the addendum.

The addendum will be delivered to the Waimate and Waitaki district councils in September and will then guide the development of the South Coastal Canterbury sub-

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Waimate and Waitaki district councils. It features seven community members, three from local Runanga, as well as council representatives.

The committee completed its Zone Implementation Programme (ZIP) for water management in early 2012 following extensive community and stakeholder engagement. Once this was complete and implementation was under way its focus turned to developing a ZIP Addendum for the South Coastal Canterbury part of its zone.

Once finalised, the addendum sets out both statutory and non-statutory recommendations on how to achieve the outcomes of the Lower Waitaki ZIP. It will inform the development of the South Coastal Canterbury subregional sections of Environment Canterbury’s Land and Water Regional Plan (L&WRP).

Background to the zone committee and process

The Lower Waitaki South Coastal Canterbury Zone Committee was formed in October 2010 to develop community-driven recommendations to deliver the goals and targets of the Canterbury Water Management Strategy (CWMS).

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www.guardianonline.co.nz

Keep close eye on farm costs – DairyNZ

D

airy farmers should pay close attention to farm costs this season, says industry body DairyNZ, in response to the reduced 2014/15 forecast milk price announced recently.

Fonterra’s forecast milk price being reduced from $7 to $6 per kgMS means volatility is part of everyday life and dairy farmers will be conservative when making farm decisions this season.

DairyNZ economists estimate the reduced payout could cut national income by $1.8 billion this dairy season – an average per farm loss of about $150,000 (based on 2013/14 milk production).

DairyNZ chief executive Tim Mackle says for many farmers, $6 per kgMS is a break-even payout, meaning little capital expenditure or principal payments will take place in 2014/15.

“While it is unclear where prices could be at the end of the season, volatility requires farmers to be prepared to react to changes quickly,” Mr Mackle said.

“Now is obviously a good time to look at updating or developing a cashflow budget based on a $6 per kgMS milk price.

“Look at where the fat can be trimmed and where efficiency gains can be made, for instance growing

Regional impacts of reduced milk price The estimated drop in farmer income ($7 down to $6 milk price)*.

Farmers should also look at what contingency plans are in place for a possible dry summer.

and utilising more homegrown feed and looking at where supplementary feed can be reduced.”

Farmers should also look at what contingency plans are in place for a possible dry summer – perhaps early culling and once-a-day milking, rather than supplementary feed. And

with large tax bills looming from last year’s record season, farmers should also contact their accountant to recalculate their tax.

• • • • • • • • • • •

Northland – $100 million Waikato – $484 million Bay of Plenty – $126 million Taranaki – $183 million Hawke’s Bay – $15 million Manawatu – $82 million Wairarapa/Tararua – $60 million Canterbury – $353 million Otago – $92 million Southland – $218 million New Zealand – $1.825 billion

*Based on $1 drop multiplied against estimated regional production.

• For more information on budgeting, visit www.dairynz. co.nz/budgets.

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Teaser bulls, influencing your herd’s reproductive performance

T

easer bulls look like, behave like and have the same effect as bulls but they have had a surgical procedure to make them infertile (vasectomy), so won’t get your cows pregnant.

Teaser bulls are becoming more common as a valued part of many mating plans. Why use teaser bulls?

A Canterbury trial demonstrated the effect of running teaser bulls with non cycling cows for the first 3 weeks of mating: 7% more cows came on heat in the first 21 days when running with teasers compared to the control groups.

6% more cows were in calf after 4 weeks of mating when run with teaser bulls.

The time taken to get cows back in calf after calving was reduced on average by 2.7 days in the groups using teasers.

Some farmers already realise these benefits by running entire bulls with their non

cycling cows. This results in white face calves born at the start of calving, meaning you miss out on valuable replacements. Because teaser bulls don’t get your cows pregnant, they will enable non cycling cows to be seen on heat and inseminated, so you won’t miss out on AB calves.

Teaser bulls can also be run

with the whole herd for the month prior to PSM to reduce the number of non cycling cows at PSM. Teaser bulls will help with heat detection in your herd once AI has started. They will pick up ‘quiet’ cows, and will always be interested in cows that are on heat even when the number of cows coming on

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