August 2005, Issue 153
The story behind J.Swap How politics forced the Anchor sale Great on the paddock ...even better on the pocket!
Used from the start of lactation, NZ trials show that Rumensin: • Reduces the risk of ketosis by 3x1
CASHBACK on Rumensin Drenchable Liquid, Trough Treatment and in-feed Premix • Purchase 2 or more 60-litre å å • Purchase 5 or more bags of å drums of Rumensin Trough å å Rumensin Premix and we will Treatment or Rumensin å å å å give you $20 cashback on å å every bag you buy Drenchable Liquid before the 30th of September and å å Offer does not include we’ll give you $100 cashback å Rumensin capsules on every drum you buy Cashback vouchers are available from participating animal health stockists.
• Preserves cow condition1 in the early stages of lactation by a 1/2 score over next 90 days 1 • Generates 1 litre per cow per day of additional milk1 from the same feed throughout lactation At any stage of lactation, Rumensin aids in the control of bloat2 by reducing rumen gas production. You can trust Rumensin. With over 2300 scientific papers to its credit, it is one of the most researched products in the world.
The Healthy High Performance Herd for Life.
Available in drenchable Liquid, 100 day capsule, in-feed Premix and new Water Trough Treatment from leading animal health stockists. Elanco Animal Health, a division of Eli Lilly and Company (NZ) Limited, 9 Gladding Place, Manukau. Helpline: Registered pursuant to the ACVM Act 1997, No’s. A3553, A5859, A7450, A8278. References: 1. Trial data on file 2. Claims registered for Liquid and Capsules only.
0800 ELANCO (352 626). ELO0003DT
Active Hygiene Solutions FREEPHONE (NI) 0508 732 733 (SI) 0508 737 343
August, 2005
Dairying Today
Reliable Waitaki in doubt
Energy efficiency feature
pg 12
pg 30
News
Opinion
3-19
Agribusiness
Management
23-25
20-22
26-29
3
The J. Swap story Cover Story pg 23 Energy 30-35
Machinery & Products 36-37
Tractors
Animal Health
38-41
Calving
42-45
47-50
‘Politics forced Anchor sale’ Sudesh Kissun A FORMER New Zealand Dairy Group director believes Fonterra was under increasing pressure to bring the Anchor Milk brand back into its fold. Keith Holmes says the Anchor brand had always been more valuable than the Meadow Fresh. Holmes says Fonterra’s decision to pay $750 million for New Zealand Dairy Foods’ Anchor Milk and yoghurt business is “a smart move provided it’s a win-win situation and the price is right”. Holmes admitted that he has “agonised” over the decision made during the merger process to retain Kiwi Dairies’ Meadow Fresh brand and offload NZDG’s Anchor to Graham Hart’s Rank Group, owner of NZDF. “We really had no choice,” he says. “The merger process was fraught with difficulties of personality clash,
politics and personal agendas,” he says. “NZDG was worth more than Kiwi but they were adamant that the merger was on equal terms.” Holmes says the deal to sell Anchor was a “facesaving measure”. “It was easy to ring NZDF and offer Anchor,” he says. “We were the more valuable brand but it was all about doing what was more achievable rather than what was commercially sound. “Looking at the value of Anchor Milk, I think Fonterra was under increasing pressure to bring back the Anchor brand sooner rather than later.” Holmes describes Hart as a “smart cookie”, who got the best out of the situation surrounding the merger. “He knew we were up against the wall and knew he was going to make money.” Holmes says he won’t be surprised if Hart rebuilds
the Meadow Fresh brand and sells it off within the next few years. Holmes supports Fonterra’s push to align the Anchor brand both locally and worldwide and the buying it back is sensible in terms of retaining and promoting brands. He says branding is very important and Fonterra retains the No 1 spot on the domestic market with Anchor Milk. Under a business swap announced last week, Fonterra will also buy the Fresh’n’Fruity yoghurt brand. In return Fonterra will offload its Meadow Fresh brand beverages and yoghurts and Kiwi Meats businesses to NZDF for $ 416m. Fonterra chief executive Andrew Ferrier says the deal will return the “iconic” Anchor brand to its product range in New Zealand, thereby aligning its international brand portfolio.
“Anchor is one of our international power brands and this is a once only opportunity to regain the brand in our home market,” says Ferrier. NZDF says it recognised the logic of Fonterra’s strategy in wanting to align its domestic brands with its international profile. It says while they were acquiring a business with a lower profit base, it considered the Meadow Fresh and Kiwi Meats businesses to be well-run operations and well-positioned in the New Zealand market. NZDF will retain its cheese business and will continue to use the Anchor brand under a 10-year licence. It also retains Puhoi Cheese. Fonterra will retain its Mainland cheese and export businesses. Under the deal, 1500 Fonterra employees and 800 NZDF will swap employers. The two parties have agreed to settle on August 31.
Keith Holmes
Fonterra pays premium for top spot Sudesh Kissun FONTERRA has paid a high premium to reclaim the No.1 spot in the New Zealand milk market. Four years ago, Fonterra sold off Anchor Milk to Graham Hart for
$310 million, only to buy it back last week for $754m. For Fonterra, 2005 has been a roller-coaster ride as far as acquisitions are concerned. The failure to grab National Foods Ltd and the unsuccessful bid
with Pyne Gould Guinness for Williams and Kettle rural stores has left scars. To rub salt into the wound, PGG has announced a merger plan with Wrightson, which swallowed the W&K chain last year.
Minimise the risk of feed shortages
However, Fonterra’s deal with NZDF will be a mini-victory as rivals San Miguel Corporation and Nestle had also shown interest in the business. Christchurch stockbroker Grant Williamson, Hamilton Hindin
Greene, agrees that Fonterra has paid a good premium to get the Anchor brand back but points out that Fonterra “had no choice but to make the move”. “It is a one-time opportunity for To page 4
Get in control of your feed supply with a stack of Pioneer® Brand maize silage. Nothing is certain when you rely on pasture only to feed your cows. Reduce the risk of feed shortages by incorporating Pioneer® Brand maize silage into your farm system. Pioneer® Brand maize silage provides your stock with a consistent, high quality, economic feed source which can be stored and fed out when required. 19 out of 27 regional Dairy Excellence Awards 2002-2005 winners using maize silage can not be wrong. When quality pasture is in short supply make the obvious supplementary feed choice – Pioneer® Brand maize silage.
P7 I4 O6 N 6 E 3 E 3 R
Pioneer® Brand products are provided subject to the terms and conditions of purchasing, which are part of labelling and purchase documents. ®, SM TM Trademarks and service marks of Pioneer Hi-Bred International, Inc.
GTL 7755
0 8 0 0
4
NEWS
Dairying Today
August, 2005
Bonlac restructure on cards Alan Harman BONLAC Supply Co. shareholders voted 94% in favour of Fonterra Cooperative Group’s offer to restructure Bonlac Foods Ltd. which, as a result, will become a wholly owned subsidiary of Fonterra. Fonterra chairman, Henry van der Heyden says that through full ownership of BFL, Fonterra will be in a position to invest in growth of the company’s milk supply, improve its balance sheet and create greater manufacturing scale and efficiencies. “Full ownership of BFL is entirely consistent with our key objectives in Australia and now it is up to Fonterra to go ahead with plans to build more efficient production, a stronger domestic branded business and contribute further to a globally competitive sector.” BSC chairman Noel Campbell says the vote reflected that Fonterra had put a strong and fair offer on the table and that both companies were eager to work together in the future. “BSC shareholders have rec-
ognised that Fonterra’s offer will try here. We see this as a key local provide them with greater security market for Fonterra and we will be and better returns and help to achieve growth and investment that BFL could not achieve if its current structure were to remain in place,” he says. “The result ushers in a new era for BSC farmers that will be defined by stronger returns and an opportunity to be part of a growing business that Fonterra will be investing in. The positive response by farmers also indicates that BSC farmers want to be at the forefront of a dynamic and growing Australian dairy sector.” Fonterra chief executive Andrew Ferrier says the immediate priority would be a move to optimise capacity at BFL’s plants Andrew Ferrier as well as growing milk supply. He also reiterated that the furpart of any further industry changther strengthening of Fonterra’s es,” he says. position in Australia remained a “We’ll also be looking at how key focus. we can further strengthen BFL’s “This is a successful and sig- balance sheet, reduce the costs of nificant step for us in Australia servicing debt, and where we can but we still believe there is further apply new investment to grow the consolidation to come in the indus- business.
“Staff will see very little impact on their day-to-day operations as they will continue to work for BFL and have the same terms and conditions and the same contracts. The transition for farmer suppliers should also be seamless allowing them to continue to run their businesses as usual but, with the added security and stability of Fonterra’s backing.” Campbell says suppliers will be asked to vote on proposed changes to the structure of the BSC board at the agm later in the year. “The BSC board will now be expanded and continue to manage farmer shareholding interests in line with share policies and also to begin to act in an advisory capacity to Bonlac Foods,” Campbell says. “The agreement we have reached with Fonterra requires the agreement of both parties on certain issues such as milk price, incentives and quality standards and the BSC Board will play an important advisory role to BFL in the future.”
Premium paid From page 3
Fonterra to grab the No 1 spot in the local market and they had to pay a good premium for that,” he says. Williamson says that the sale proves that Graham Hart is “a smart operator with anything he buys”. “NZDF has comes out of this extremely well from a profit point of view,” he says. Williamson says Fonterra made a tidy profit by selling its National Foods’ shares and may have used it to fund the NZDF deal. “Fonterra is moving with their strategic plan of making acquisitions in important markets to remain competitive,” he says. Fonterra Brands managing director Sanjay Khosla says the NZDF acquisition
is about achieving “a much stronger alignment of brands”. “It’s also consistent with our strategy to be the number one or two player in all the categories in which we compete in our home market while aligning the global brand portfolio and providing further opportunities for offshore growth,” he says. Buying Fresh‘n’Fruity yoghurt business from NZDF will boost Fonterra’s yoghurt range. “Yoghurt, and cultured dairy products, are one of the fastest growing dairy categories worldwide,” says Khosla. “The Fresh’n’Fruity brand mix has potential to be applied in markets outside New Zealand.”
Nats go to the dogs Benedict Collins
Wash Down Pumps Specials For Your Local Dealer Phone 0800 509 506
THE anti-farmer Labour Government will have cockies thrown in jail or fine them $25,000 if they fail to clean their dogs’ bowls daily…or so National would have you believe. As the September 17 election draws near the main parties are injecting a bit more mongrel into their campaigns as they attempt to cajole voters into siding with them. Last week National MPs Nick Smith and David Carter claimed Agriculture Minister Jim Sutton had introduced “new regulations” that would force farmers to clean food scraps from their dogs kennels daily. Worse still, Sutton had it enshrined in law that dogs’ bowls not only had to be cleaned daily but also dried with “a disposable paper towel”. Sutton had endorsed these measures in a new animal welfare code of practice, they said, and had made it clear that failure to comply could result in legal action. These “stupid requirements” show there is “no limit to Labour’s nanny state policies”, it is “red tape gone mad” and nothing more than “politically correct rubbish” the MPs said in a flurry of press releases.
WHERE ELSE CAN YOU GET 2 YEARS WARRANTY ON AN EFFLUENT PUMP? NOT JUST A FLASH NAME, FERRARI EFFLUENT PUMPS HAVE A FEARSOME PUMPING ABILITY AND DON’T BREAK DOWN! * “Free Murphy NP2 panel with all complete irrigation packages ordered August 10th to Sep 30tt 2005”
PACKAGE 1:
PACKAGE 2:
SMALL-MEDIUM HERDS Ferrari PTO Pump complete kit, 250m Mainline, 200m Dragline Irrimax 12 Irrigator, 25,000 l/hr $12, 999-00 + GST
LARGER HERDS Ferrari PTO Pump complete kit, 500m Mainline, 200m Dragline Irrimax 15 Irrigator, 40,000 l/hr $15,999-00 +GST
PACKAGE 3:
FEED PAD PONDS Ferrari Chopper Pump with complete kit, 500m 110mm Mainline with Flexi Hydrant, 100m x 31/2” high high quality rubber lay flat, effluent irrigation gun on towable sled, 60,000 l/hr $16,999-00 +GST
“Protect your Tractor and Pumping Equipment with a MURPHY NP2 Control Panel. Monitors Tractor oil pressure and temperature and Pump pressure. Very reliable and easy to adjust to suit your conditions”
0800 426 296 Irri MAX Ltd. Dealer Enquiries Welcome
*We have not had a warranty claim on a Ferrari Pump in the last four years!
“It is no wonder kennel clubs and Federated Farmers are up in arms,” Smith told the nation. Unfortunately, Smith and Carter neglected to mention one awkward little detail -- the truth. In fact, just one phone call to Federated Farmers reveals that not only is the organisation not “up in arms” about the code but is actually a willing participant in helping draft the new dog code which is “in its very early stages”. A spokesman for the federation says it is being drafted by about a dozen organisations and is still six months away from going before the National Animal Welfare Advisory Committee (NAWAC). After NAWAC sees the draft, it is subject to public submissions then goes back to NAWAC before finally going to Sutton for signing off. Further, the spokesman says, the requirements to clean bowls daily would be best practice advice and not minimum standard requirements. It appears National has been barking up the wrong tree.
NEWS
August, 2005
Dairying Today
Oil price soars while kiwi climbs Benedict Collins AS fears of terrorist attacks in Saudi Arabia grew and Iran renewed its nuclear work last week the price of oil rocketed to US$64 per barrel. Saudi Arabia is the world’s largest oil exporter, producing 10 million barrels a day, and Britain warned of imminent terrorist attacks there. As foreign governments shut their embassies in the kingdom, Iran announced it was spurning international advice and resuming uranium production at one of its nuclear facilities. Iran is OPEC’s second largest oil producing nation and the twin fears of disruption to oil supplies combined to push oil up by nearly US$2 per barrel to US$64. In today’s money the price of oil during the 1970s oil crisis would have been US$80 per barrel.
Prices at the pump in New Zealand last week were diesel 93.9c/litre and U91 - 139.9/litre. BP New Zealand says that during 2004 the average price of oil rose 33% and that this “trend has continued strongly into 2005�. Despite Finance Minister Michael Cullen’s calculations that petrol prices had peaked when he imposed his 5% fuel tax on consumers in April, the New York Times is quoting analysts saying the price of oil is, without doubt, going to continue rising. Meanwhile, the kiwi has reversed some of its recent downward trend rising nearly two cents during August to be at US69.3c going to press. The rise comes despite the United States Federal Reserve lifting interest rates there again last week and shows the American economy is more affected
than New Zealand by the high price of oil and Middle Eastern unrest. While the kiwi has begun to rise agricultural commodity prices fell for the second consecutive month in July. The ANZ World Commodity Price Index fell 0.5% in July “extending a 0.6% decline in June� which provides “further evidence that a peak in prices was reached in the second quarter of 2005�. The correlation between the kiwi and world commodity prices was also mentioned. “On the way up, rising world commodity prices have been dampened by a strengthening New Zealand dollar, now in the early stages of a correction; a weaker New Zealand dollar has provided an offset to weaker world prices,� the ANZ says. Fear of attacks in Saudi Arabia sparked a price rise to $US64 per barrel.
US relations expendable? Benedict Collins WHILE Labour enjoys renewed success at the polls following its accusations that National’s policies are being formulated in Washington, not Wellington, there is evidence these tactics are ruining trade prospects with the United States. Dairying Today’s stablemate Rural News revealed recently that leading agricultural trade advocates are dismayed that Labour is poisoning trade relations with America in its attempt to be reelected. One agricultural industry leader who travelled to Washington recently for trade talks says senior American politicians are extremely upset that Labour is using them as a political football. “They [the American politicians] told me privately that they are really disappointed and said they wouldn’t do anything that
would help Labour get back into power,� the source says. “All these heat-of-the-moment political comments that are being made here will be remembered there [Washington] for a long time to come -- reports and all the newspaper clippings are being sent back there. “There is no question about it, the Government is doing longterm damage to our relationship.� With each Labour attack on National’s alleged inappropriate relationship with the US, the industry leader says, the odds of New Zealand acquiring a FTA with America lengthen. “The senators told me there are three main issues for them surrounding an FTA with New Zealand: the nuclear-free policy, our dairy industry and pharmaceuticals.� Another apolitical but senior
trade source confirmed that Labour’s tactics in the domestic political arena are detrimental to efforts to expand trade with the United States -- “there’s absolutely no doubt�. There is growing disillusionment within New Zealand trade circles at the attacks on National/ United States, they say. However, a spokeswoman for Minister of Foreign Affairs and Trade Jim Sutton claims he is not aware of any fallout over the attacks which she says are quite clearly not aimed at America. “This is not about them [America] but it’s about certain National MPs behaviour and whether that behaviour is appropriate.� The spokeswoman says there is nothing wrong with having a relationship with America and Sutton has a good working relationship with his United States counterparts.
MAIZE GRAIN SILAGE HYBRIDS
#ORSON 'RAIN $UAL 0URPOSE -AIZE (YBRIDS
#ORSON 4ENDER ,EAFY 3ILAGE 3PECIFIC -AIZE (YBRIDS
0LANTING #ORSON HYBRIDS WHETHER FOR GRAIN OR SILAGE PROVIDES YOU WITH ONE OF THE BEST LAND USE OPTIONS AVAILABLE TODAY "EGINNING WITH ADVANCED SEEDLINES OUR AGRONOMISTS SELECT ONLY THE BEST HYBRIDS AFTER EXTENSIVE TRIALING UNDER .EW :EALAND CONDITIONS 9OU CAN SELECT #ORSON HYBRIDS TO PROVIDE DEPENDABLE YIELDS FAST EMERGENCE OUTSTANDING STANDABILITY LEAF DISEASE TOLERANCE AND IMPROVED STAYGREEN
"QQMF"SU #
YOUR CHOICE TO YIELD MORE .EW :EALAND &AMILY /WNED
FOR THE LATEST HYBRIDS AND HIGHEST QUALITY SEED CONTACT YOUR LOCAL SEED MERCHANT
WWW CORSON CO NZ #/23/.
5
6
NEWS
Dairying Today
High rate burden remains DON Nicolson, vice-president of Federated Farmers, says members are disappointed at a select committee report into last year’s local government elections. “The committee has ruled out a return to fairer representation for groups such as farmers saddled with a disproportionately high rates burden,” Nicolson says. He was commenting on the Justice and Electoral Committee’s report Inquiry into the 2004 Local Authority Elections. The committee chose not to recommend reinstating pre-2001 criteria for fair representation that took account of population and other factors such as rateable value and land area. Instead the committee endorsed using only population for setting local authority representation. In some rural areas, farmers are paying the lion’s share of the total rates bill but make up only a small proportion of the population, which means they struggle to be heard round the council table. “The new arrangements discriminate against people in rural areas, particularly farmers who pay high rates due to the archaic property-value-based way that local government is funded,” said Nicolson. “Farmers aren’t asking for councils to be dominated by farming interests. But they seek fair representation whereby those who fund most council spending should have a fair say around the council table,” Nicolson says. Twenty-eight of 86 councils reviewed their representation arrangements before the 2004 elections, while the remaining 58 must do so before 2007. They will be forced to use only population quotas, further reducing the number of rural councillors.
August, 2005
Westland reviews future Heather Chalmers STAND-alone dairy company Westland Milk Products is reviewing whether its share value of $1.50/kg of milksolids -- which has remained unchanged for years -- is sufficient for future company growth. Consultant Rabobank is reviewing the company’s share structure and is expected to make recommendations to the board, which will put its preferred option to the company’s agm in late October, says Westland chairman Ross Scarlett. “But it will be the shareholders who will make the decision about the capital structure of their company.” Westland’s board was neutral, he says. The company’s strategic plan did not indicate a funding shortage for future processing growth at the $1.50/kg share value, but the Rabobank review would determine that, he says. Westland’s share value of $1.50 has been unchanged since before West Coast farmers opted out of the Fonterra mega-merger to retain their own independent cooperative. In contrast, Fonterra’s fair value share has lifted annually on independent advice since the company formed in 2001 and for the 200506 season has been boosted 75c to $5.44.
Rabobank is reviewing the co-op’s share structure.
“If Westland’s payout is close or better than Fonterra’s, then the $1.50 share value makes Westland an extremely attractive place to come farming,” Scarlett says. Westland paid its suppliers $4.53/kg MS for the 2004-05 season, just short of Fonterra’s $4.59/ kg. Dairy Farmers of New Zealand West Coast chairwoman Katie Milne says a review of Westland’s share value was timely. “We’ve gone through that first phase of going alone. It could be that $1.50/kg is an appropriate level, but unless
we look at it we won’t know.” Dairying on the West Coast continues to move ahead, with an extra 10,000 cows supplying the company milk last season and 8000 more cows this season. Westland general manager operations Hugh Little says over the last 10 years the company’s milk supply has increased an average 9-10% each year. This coming season it is budgeting on a further 13% lift. However, this could be exceeded as farmers recover from a difficult, wet season in 2004-05 when
production was unchanged on the previous year. Increased milk volumes will come from five new conversion farms as well as production lifts on existing properties. Its 336 suppliers owning 386 farms, with Landcorp among the multiple farm owners. Westland continues to invest in new processing at its Hokitika plant, last season spending $9 million on an anhydrous milkfat plant and $38m in casein and whey products manufacture. This year it will invest $34m in caseinate manufacturing.
NEWS
August, 2005
Dairying Today
7
Small companies face transport cost hike Sudesh Kissun SMALLER dairy companies say they face substantial increase in milk transport charges under a draft ruling by the Commerce Commission. The companies oppose the commission’s ruling on milk transport charges levied by Fonterra that will remove the national average price paid by buyers across the country. In their respective submissions to the commission, the milk and cheese companies say if Fonterra implements the draft determination, their production costs will rise. The commission is holding a three-day conference in Wellington this
week to hear submissions on its draft determination released four months ago. The small dairy companies say they are totally dependent on Fonterra for milk supply and prefer the national average transport cost retained. Oamaru-based Whitestone Cheese managing director Bob Berry says the draft determination will increase their transport costs from 22c/kg/MS to 39c/kg/MS during the peak season and to 99c during winter. Berry says based on the company’s projected purchase of 1.5m litres of milk, the company’s annual freight bill will increase by $43,000 and add 24c per kg to the cost
of their finished product. The Whitestone factory is five kilometres from the nearest Fonterra dairy farm. Evansdale Cheese will end up paying Fonterra 31c/kg/MS during the peak season and 75c during winter. “This is a huge increase from the present 22c for the whole of the season that we are being charged now,” says Evansdale director Paul Dennison. “We are a very small cheese factory buying milk from Fonterra and the price of this milk is always a major concern to us.” Fonterra charges dairy companies 22c/kg/MS for transporting milk based on its national average
Bob Berry
transport cost. Following an application from Open Country Cheese, the commission has ruled that the charges are “unreasonable”. It ruled that Fonterra should follow a regional averaging transport cost rather than the national averaging and the charges should reflect Fonterra’s actual costs. Taumaruni Milk
Cooperative chairman Weston Kirton believes Fonterra should have the right to charge a standard transport cost “regardless of the distance actually travelled”. “These standard charges reflect the uncertainty of the source of supply; in some cases it could be close to its final destina-
tion in others it could be many kilometres away,” says Kirton. He believes the commission should uphold the cooperative nature of the milk industry. Fonterra says its cooperative status has been “simply ignored” in favour of the commission’s view. However, Open Country says the draft ruling is
“fair” and should be acceptable to other dairy players. Open Country director Wyatt Creech says his company will still pay Fonterra a higher rate than what a commercial transport operator would charge. The commission is expected to give its final ruling next month.
ORGANIC CERTIFI ED
APPLE CIDER VINEGAR A Quality Natural Supplement tried and proven by Dairy Farmers throughout NZ – Additives available – • Garlic (freshly crushed) • Manuka Honey • Echinacea extract – available in SL to 1000L containers – prompt free delivery nationwide For further inquiries CALL THE STOCKHEALTH ORCHARD - FREEPHONE
0800 313 477
Relief for Takaka
FONTERRA has announced final plans for re-establishing milkprocessing operations at its Takaka site, damaged by fire. Fonterra’s manufacturing general manager Brent Taylor says that the company would spend $30 million to refurbish the site’s milk powder plant so it had sufficient capacity to process milk from the Golden Bay catchment. The company would not be rebuilding the butter hall or the casein plant, Taylor says. The planned changes to the
site’s configuration as part of the refurbishment meant approximately one-third fewer staff would be required at the Takaka site. Fonterra’s human resources team and other support staff were already talking to employees and union representatives and working through a range of options for redeployment opportunities, Taylor says. Taylor says a number of factors had been taken into account in deciding the site’s final configuration.
NEWS BRIEF
Dangerous males MALES are around twice as likely as females to have a claim accepted for work-related injury, say the latest Statistics New Zealand figures. Last year 176 per 1000 male full-time equivalent (FTEs) employees were injured compared with 84 per 1000 females. Males also accounted for three-quarters of all work-related injury claims. In 2004 245,000 claims were accepted, an increase of 2% compared with the previous year. Male claims made up 74% of the injuries from 214,500 workers. As well 73 claims involved fatal injuries, 69 of them males. Northland and Gisborne/Hawke’s Bay had the highest incidence rates with 191 and 187 claims per 100 FTEs respectively. Wellington had the lowest with 77 claims. Claims for work-related injuries incurred costs of $177.7 million to the ACC by March 31, 2005.
“We appreciate what this decision means to the community, and we have taken various environmental, social and economic considerations into account. “We are committed to maintaining a presence in Takaka. Partly that reflected this region’s geography and the difficulties in transporting milk from Golden Bay to be processed elsewhere, but we were also aware of the need to take a broad view of our place in the community in deciding the site’s future,” he says.
for results...
8
NEWS
Dairying Today
August, 2005
Bilateral trade priorities: NZ’s top 10 THE failure of the G8 summit to progress global trade reform means the focus for multi-lateral trade initiatives is back on the Doha Round. More progress is being made through bi-lateral trade agreements. The NZIER (NZ Institute of Economic Research) made the following summations of critical issues New Zealand faces with its top 10 export destinations. The summary was published in a June 2005 NZ Trade Consortium working pa-
per it co-authored. (Export figures (fob) in NZ$ are to December 31, 2003): #1 - Australia Our main market between 1860 and 1870, but not again until CER was signed in 1982. Main merchandise exports by value are timber, gold, crude petroleum and cheese. Total value of all exports, $5.55 billion. Critical issues: the extension of CER into tax and business law harmonisation. #2 – United States of America
Post WWII the US became a major market for NZ. Mainly buy frozen beef, casein, sheep meat and timber—total value, $4.01b. Critical issues: Protecting current access to US markets and a possible FTA. #3 – Japan Became important after 1960, taking mainly NZ aluminium, fresh fruit, cheese and logs—total value, $3.11b. Critical issues: improving access to Japan’s highly protected agricultural markets.
#4 – China Trade began to flourish after 1973 when NZ re-established diplomatic relations with China. Mainly buys milk powder, wool, logs and wood pulp—total value, $1.36b. Critical issues: Negotiations towards a FTA hold big possibilities for exporters. #5 – United Kingdom The motherland: became our largest export market from the late 1870s. Now mainly buys sheep meat, wine, apples and wool—total value, $1.32b. Critical
issues: best chance to improve access to this important EU market is through WTO negotiations. #6 – Republic of Korea Developed as a major export market in the late 1970s, early 1980s. Main exports are logs, frozen beef, wood pulp and sheepskins—total value, $988 million. Critical issues: Achieving a reduction in the high trade barriers to primary exports is the most important issue for NZ’s trade with Korea. #7 – Germany
Became a small but significant market for NZ commodity products in the 1960s. Mainly takes sheep meat, casein, venison and wool—total value, $728m. Critical issues: Reforming the EU’s agricultural policies may allow NZ primary exporters to increase their sales to this large market. #8 – Taiwan Exports to Taiwan grew most rapidly after the mid1980s. Buy mainly frozen beef, milk powder, sheep meat and fresh fruit—total value, $621m. Critical issues: a reduction of high tariffs on agricultural products is the focus of our trade policy with Taiwan. #9 – Belgium An important entry port for our exports in the 1950s and ‘60s, it has consistently been in our top 20. Strategically important as a hub for our major exporters. Big buys include butter, sheep meat, cheese and
wool—total value, $621m, although this figure is inflated because much NZ produce is redistributed inside the EU. Critical issues: Belgium’s importance as a point of entry to the EU will only grow as it expands into Eastern Europe, making it even more valuable to our exporters. #10 – Hong Kong An important and growing market for our exports since mid 1970s. Very liberal trade rules mean agricultural exports face less of the restrictions common in other markets. Biggest buys are crustaceans, kraft paper, milk powder and leather. Total value to NZ, $543m. The next 10 biggest export destinations for New Zealand in descending order are Canada, Malaysia, Philippines, Italy, Mexico, Indonesia, France, Thailand, Singapore, and Saudi Arabia.
Access panel slammed Sudesh Kissun A NEW panel appointed by the Government to lead consultation on improving access along waterways has been labelled “window-dressing” by the National Party. National agricultural spokesman David Carter believes there is no point in setting off another round of consultation. While Carter approves the appointment of some panel members, he rejects the reappointment of John Acland as its chairman. Agriculture Minister Jim Sutton appointed Acland, who chaired the first ministerial group on access. Other members include former Federated Farmers board member John Aspinall, Bryce Johnson (Fish and Game), Claire Mulcock, Maggie Bayfield (Rural Women), Professor Tom Brooking (Otago University), Maori affairs consultant Parekawhia McLean and Opotiki Mayor John Forbes. Carter says Aspinall has enormous experience on access issues and his appointment is a “good thing”. “However, the appointment of the panel is just another stalling mechanism on the radar screen before the election,” he says. “To set off another round of consultations led by same Acland will not achieve anything.” Carter claims that the Government has finalised the access legislation and it will be “pushed through” after the election. Rural Women New Zealand (RWNZ) has welcomed the appointment of Bayfield, its executive officer, to the panel. RWNZ president Sherill Dackers says Bayfield brings to the panel “extensive experience” in working on land management issues and consulting with landowners. Dackers says they have long called for a fair and open process regarding any changes to land access. “We expressed strong concerns over the closed nature of the process in the past,” she says. “We are very pleased the Government has listened and has now established a process to hear the views of interested groups, particularly rural families.” Dackers also welcomed Sutton’s announcement that there will be no imposition of a five-metre walkway. Sutton says the panel will engage in consultations to reach general agreement on what measures could be implemented to improve access to the publicly owned resources of water and fish.
When I need a machine I can rely on
PLUS
Purchase a Honda TRX500FM, TRX500FA, TRX350FM, TRX350TM or TRX400FA and receive a FREE custom designed Honda all-weather oil skin Swanndri vest, worth over $200!* *Applies to TRX500FM, TRX500FA, TRX350FM, TRX350TM and TRX400FA models only. Promotions runs from 1st April to 31st August 2005 at your nearest Honda dealer while stocks last.
For a FREE brochure Freephone 0508 HONDA MOTORCYCLES 4 6 6 3 2
6 BWH 7685
or visit the ‘I SEE RED’ website www.honda-motorcycles.co.nz
10
NEWS
Dairying Today
Vote now NOMINATIONS are now open for Fonterra’s Board of Directors, Shareholders’ Council and Directors’ Remuneration Committee elections. Nominations must be received by the returning officer Warwick Lampp of electionz.com, by noon on Friday, August 19. Candidates for the elections have to be Fonterra shareholders, or a shareholder of a company or a member of a partnership or entity that is. Candidates must also be nominated and seconded by Fonterra shareholders. Nomination forms are available from the returning officer, Election Hotline tel. 0508 666 446. Nominations can be faxed to 0508 666 447 or mailed to the returning officer, PO Box 5252, Christchurch. The Directors and Directors’ Remuneration Committee members will be elected in a nationwide vote. Councillors will be elected by shareholders in 10 wards. Fonterra directors Greg Gent, Earl Rattray, and Jim van der Poel have advised they will stand for re-election in the Fonterra directors election. Three shareholder-elected directors, a third of council and two members of the Directors’ Remuneration Committee retire annually by rotation. There is a by-election in one additional Shareholders’ Council ward because a casual vacancy has arisen.
August, 2005
No easy fix for health issues Ross Annabell NO end of complaints were aired by the nation’s top medicos at the 2005 Rural Health Summit conference in Wellington on July 27-29. Financial and organisational factors hamstringing rural medical treatment were graphically illustrated by doctors’ reports of their experiences treating emergencies ranging from road trauma to heart attack, while facing delays and hang-ups through lack of medical facilities, staff, training, transport, and communications. Doctors presented case histories illustrating discrimination in treatments available to rural communities, compared to urban centres, uncoordinated contact between rural and major hospitals leading to costly and unsatisfactory patient outcomes, and lack of training and inadequate rewards for rural GPs. The brightest outcomes of the three-day summit were the appointment of a working party of 11 rural hospital doctors and GPs to set up a curriculum and training plan for rural doctors. It was generally acknowledged that progress could come from rapid development
and expansion of telemedi- a winding metal road. After cine, using telecommunica- treatment at Whangamata tions, televised operations Hospital, transfer to Auckland and examinations directed by cardiac unit, subsequent colskilled distant surgeons, with lapses and further treatment, faster and better coverage the patient died in his sleep. Molloy says the patient from cellphone and satellite was typical of communicaMaori men, tions. who don’t seek Case histomedical attenries presented by tion early, beindividual doccause preventors during the tive messages conference illusare not getting trate some of the through. This problems. was an imporDr Stuart tant cultural Gardiner, chief barrier for medical officer Maori men at Tokoroa Hos- Paul Worley pa r ticula rly pital, gave debecause mana tails of treatment of an elderly male diabetic pa- and pride come before health, tient with chronic acute renal discouraging them from wantfailure, pneumonia, impaired ing to bother people and make liver, and coughing blood. He a fuss about their illness. “It is costing them their was transferred 90km backwards and forwards between lives. Their attitude is that if Tokoroa and Waikato hospi- you die with your mana intact tals a number of times over your age is irrelevant.” Keynote international more than 50 days, before dyspeaker professor Paul Worley, ing peacefully in his sleep. Dr Tim Malloy, Wellsford, director of the Rural Clinical chairman of New Zealand’s School at Flinders University, Rural General Practice Net- Adelaide, says there is a clear work, presented the case his- message from the case histotory of a 65-year-old retired, ries of different value systems poverty-stricken Maori male operating in the rural commucardiac patient who lived 25 nities, and the way they can minutes from a surgery down often lead to late presentation
of serious illness. “It seems apparent from the presentations that there has been discrimination against the treatments that are available to rural communities compared to those in urban localities, and this needs to be addressed speedily --particularly the issue of acute infarcts [inadequate supply of blood].” There was evidence of inappropriate referrals, of premature death from preventable disease, and of instances where patients can get lost and actually got sicker in an uncoordinated system. “We have to determine who actually is responsible in patient care. Does centralised but uncoordinated efficiency end up actually costing more to the community, the funders and the people involved? A good example was where the last 60 days of a man’s life ended up costing a great deal more because of a centralised but uncoordinated system that was meant to be more efficient.” It was evident that health professionals work in public, unpredictable and uncontrollable environments, and the point came over repeatedly that time, access and highlevel training is absolutely
crucial. “Our policies have to support the high level training that rural professionals have gone out of their way to attain.” He says New Zealand and Australia share serious rural health problems with much of the rest of the world. Statistically, the further people live from cities, the more they are likely to die. Meanwhile, funding is not yet in sight for the main aim of the three-day 2005 Summit Health conference -- giving medical students a year in country practise. The rural health strategy wants qualified medical students to seek jobs in rural areas to help solve what is described as “a career black hole” and help solve the rural doctor shortage. But funding is the problem to get up to 40 fifth-year medical students out into rural areas for a year. Rurally selected third-year students now in training are due to go out in 18 months, but the universities have heard nothing about funding. Dr Pat Farry, director of Dunedin School of Medicine and co-convener of the summit, says universities need $12-$15 million.
August, 2005
NEWS
Dairying Today
11
Massey, Lincoln team up Top honour for Kiwi Zeakand’s best and brightest DAIRY research and manufacture minds, and leading-edge rewill benefit from a joint project search.” newly announced by Massey and Dexcel chairman and Fonterra Lincoln Universities and primary director Jim van der Poel says “for producer groups. New Zealand to maintain its status So far $20 million has been as a world leader it needs a worldgranted the scheme, aimed at integrating the research and educational capabilities of the universities with industry needs. Under a Government “agriculture and life sciences partnership”, the two universities will work with farmer and grower groups “to create the most influential centre of research-led education in the agricultural and life sciences in the southern hemisphere,” Massey University says. Industry partners Dairy research will benefit from the partnership. are Dairy InSight, Dexcel, Fonterra, class faculty and this partnership is Dairy Companies Association of a crucial step in this direction.” NZ, Meat & Wool NZ, AGMARDT, There is significant focus on NZ Fruitgrowers Federation and improving productivity in the NZ Vegetable & Potato Growers dairy industry, and a strategic Federation (Vegfed). framework has been developed to The scheme will promote identify and enhance priority areas “outstanding individuals consistsuch as environmental sustainabiliently upgrading their skills and ty, forage and knowledge transfer, capability, a steady influx of New van der Poel says. The partnership
is well aligned with these industry objectives. Massey University Vice-Chancellor Judith Kinnear says this is a landmark opportunity “enabling the strategic alignment of New Zealand’s $17b agricultural indus-
try with its two leading agricultural universities” and a “powerful catalyst for further engagement and investment”. Lincoln University Vice-Chancellor Roger Field says the two universities “have sought opportunities to work more closely together for some time” and see scope for “real and meaningful collaboration”.
FONTERRA dairy scientist Dr Peter Munro has become the sixth New Zealander to win the American Dairy Science Association’s highest research and development award for his contribution to the industry. Munro, Fonterra’s general manager of planning and integration, was presented the 2005 Danisco (formerly called Marschall Rhodia) International Dairy Science Award in Ohio. The award, established in 1980, recognises outstanding accomplishments in research and development outside the US and Canada in chemistry, biochemistry, microbiology, technology or engineering in the dairy foods industries. Fonterra’s director of innovation Bob Major says the award is a tribute to Munro’s outstanding contribution to the New Zealand dairy industry and to dairy science internationally. “All New Zealanders should take tremendous pride in the achievement of scientists like Dr Munro, who are using their knowledge and skills to drive innovation and increase New Zealand’s value-add capabilities in the global marketplace.” Munro joined the former Dairy Research Institute, now Fonterra Innovation, in 1993 as programme leader in functionality to provide scientific and technological leadership to improve understanding of milk protein and milk powder. Commercial successes included development of a heat stable whey protein concentrate, improvements in instant
whole milk powder functionality and development of a milk protein concentrate for use in cheese-making. From 1998, as general manager of process technology, the work in his development programme on novel cheese flavour technologies, novel whey protein isolate technologies, dehydration technologies, probiotics (beneficial lactic acid bacteria) and other bioactive milk components led to 20 new patents. With the establishment of Fonterra Marketing and Innovation at Palmerston North in 2003, Munro was appointed options manager for new business, with responsibility for evaluating the technical, market and financial feasibility of all projects within M&I. He was recently appointed general manager of planning and integration. Munro says the biggest change in the industry is the approach to R&D, which is much more systematic than it used to be. “Since M&I was formed, there’s better focus on business outcomes from our R&D activities. We look at projects across the whole portfolio and we screen, value and prioritise them through an innovation pipeline. Using this rigorous process undoubtedly results in better allocation of resources and better outcomes.” A graduate of The University of Auckland with a BE with first-class honours)in chemical and materials engineering, Munro completed his doctorate at University College, University of London, in 1976.
12
NEWS
Dairying Today
August, 2005
‘Reliable Waitaki water’ now in doubt Heather Chalmers KELVIN Weir has lived and farmed alongside the banks of the Waitaki River all his life. The massive braided river dividing North Otago and South Canterbury shapes the lives of many who live along it -- whether because of its environmental impact, recreational opportunities, irrigation making farmland productive, and its substantial role in hydroelectric generation. Weir is well aware of the difference irrigation from the river has made to the Waitaki Valley, remembering dust storms and fewer trees as a child. “It’s a
beautiful valley and irrigation has helped that.� Confidence in the river’s ability to supply reliable irrigation water has prompted Kelvin and his wife Debbie to undertake a large-scale dairy conversion development between Georgetown and Duntroon in North Otago. In its first season 200506, the 450ha former sheep and beef farm will milk 840 cows in conjunction with sharemilkers Matthew and Julie Ross. However, a history of virtually 100% reliability of irrigation water from the Waitaki is now at risk from a Government-initiated Waitaki Catchment Water
Allocation Board which is reviewing the balance between the river’s competing uses. In its draft plan the board recommended lifting the river’s minimum flows, which would result in more water flowing out to sea and less being available for irrigation. A further seven weeks of hearings have just been completed and the board now has until September 30 to complete its final plan. Local farmers, like the Weirs, are hoping the board will revert back to the status quo, otherwise they face the daunting prospect of irrigation restrictions, likely to be severe in dry
QUALITY THAT’S PROVEN... ...From years of reliable service
Model 10 & 15 Effluent Machines â—? â—? â—? â—? â—?
Low pressure self travellers Designed to apply effluent at rates down to 7mm. Fully hot dipped galvanised Flexible travel speeds Low running costs.
North Otago farmer Kelvin Weir says reliable irrigation water from the Waitaki River in the background is key to the success of his large-scale dairy conversion.
years, and reduced profitability. Weir says he bought the property because it was part of the Maerewhenua irrigation scheme which takes water directly from the Waitaki River and has a record of no irrigation restrictions. The property also still had 32 years to run on an existing 35-year water consent. “Because of this we paid a high price for the land and have spent a lot of money developing it. It’s a huge investment and without water it just doesn’t work. A key to farming is non-restricted water.�
The Weirs previously lived across the road, converting that property to dairy five years ago, before it was bought by Meridian Energy for the now-abandoned Project Aqua canalbased power scheme. Since moving to the new property, the Weirs have totally redeveloped 150ha of borderdykes on the flats at a cost of $4000/ha to make them more water-efficient. While the old borders only watered 70% and took 106 hours, the recontoured, laser-levelled borders provide 97% coverage and take 90 hours. The new
borders are 80-100m wide compared with about 20m previously, and are shorter in length at 220-230m compared with 400m, providing a quicker, more efficient watering. “The problem with the board’s plan -- in part to encourage irrigators to be more efficient with their water -- is that not everybody can go to spray or centre pivot because of the shape of their land, which is why we rebordered. “It makes farmers stop investing in rebordering and makes their irrigation more efficient, but it may not be worth it if the irrigation
water is restricted.� Weir says there needed to be a balance on the Waitaki plains of border and spray irrigation. Of the borderdyke on the plains, about a third is believed to have been upgraded. As well as the borderdykes, the property also has two 3m bores on the flat. Water from these is pumped to 300ha of hill behind the flat, of which 220ha is K-line irrigated with the remainder dryland. If the borderdykes are not able to be irrigated, then the shallow bores would also struggle to water the hill. As part of its resource consent with Environment Canterbury, the underground water must be tested every four months for nitrate, e-coli and coliforms. Weir says it was ideal dairy country because it had a mix of light ground on the flat and heavier ground on the hill. The property will be run as a self-contained dairy unit with wintering of cows on-farm. The conversion has included regrassing, refencing and new laneways, as well as a 60-bail rotary dairy.
Landowners kept in limbo
Manufactured in New Zealand by
Heather Chalmers
Irrigation Ltd
FARMERS in North Otago and South Canterbury can now only wait to find out whether they face the prospect of irrigation restrictions from the Waitaki River. After 1200 submissions and seven weeks of hear-
4 Robinson St, Ashburton Ph: 03-308-1593 Fax: 03-308-7320
R
FFE / N ) DE A R 4 NG 3PRI /. 7 / .
!RE YOUR CELL COUNTS RISING "Y UPGRADING TO $E,AVAL ELECTRONIC PULSATORS YOU CAN IMPROVE YOUR UDDER HEALTH AND THE THROUGHPUT OF YOUR FARM DAIRY BY QUICK PRECISE AND EFl CIENT MILKING 4RADE )N YOUR OLD PULSATORS AND TAKE ADVANTAGE OF OUR SPECIAL SPRING OFFER &OR MORE INFORMATION CONTACT YOUR LOCAL PARTICIPATING $E,AVAL $EALER
ings, the Waitaki Catchment Water Allocation Board now has until September 30 to prepare its final plan which can only be appealed on points of law. Environment Canterbury will administer the final version. Farmers are hoping the final plan will mark a return to the status quo which until now has enabled irrigators to water with almost 100% reliability from the Waitaki River, by far the biggest of Canterbury’s braided rivers. Irrigation reliability will drop to an estimated 88.5% -- rated as poor or very poor -- if increased minimum flows outlined in the board’s draft plan are adopted. The first of its type, the Government-initiated allocation board was set up to review the Waitaki’s competing water uses in response to Meridian Energy’s now abandoned Project Aqua canal-based power scheme on the river. Lower Waitaki Irrigation Company chairman Chris Dennison told the hearings that its scheme which covers 19,300ha of productive farmland, much of it in dairy, had never faced water restrictions in its 30 years. The scheme had brought prosperity and stability to a district renowned for lingering droughts and unreliable rainfall. Dairy Holdings Ltd general manager Colin Glass told the board that of the corporate farmer’s 44 dairy farms in the South Island and Tasmania, the eight on the Waitaki Plains were the most profitable. Converting the Waitaki plains farms from borderdyke to spray irrigation to meet the draft plan’s efficiency levels would cost the company up to $4.6 million and increase annual operating costs by $300,000 with no additional production, he says. A North Otago Federated Farmers submission to the board says the additional power cost of converting to spray irrigation was estimated at 1000kwh/ha, which for the Morven-Glenavy irrigation scheme in South Canterbury alone equates to an annual increase of 15,776,000kWh. The additional capital costs to landowners in converting are estimated at $650/ha, with an additional annual cost of $150/ha for power and labour. For an average 200ha property, this equates to a capital investment of $130,000.
14
August, 2005
COMMENT
Dairying Today
Transpower issue must be addressed before Kip Bodle is the managing director of Deosan New Zealand. He is also involved in a 1400ha dairy and drystock family operation in the heart of Waikato which is to be traversed by Transpower’s 400-kV transmission line route. Before Bodle became involved with Deosan, he spent time as a planning lawyer in cases involving Designations under the Resource Management Act, and on issues relating to Compulsory Acquisitions under the Public Works Act. He is adamant that Transpower needs to be brought to task over an unsound process for selecting the proposed pylon route. This is the last of a series of editorials in which Bodle has identified some of its fundamental flaws. WITH the election looming, it is an opportune time to highlight the political issues lurking behind the Transpower 400kV transmission line project. It is especially fitting since the Government is doing its best to play down the issue. This must not be allowed to happen for several reasons. First, the election may provide an opportunity to force Transpower’s plans off the books. Second, a decision will be made before 2007 when
the construction of the transmission line supposedly needs to begin. So the incoming party will be the government that makes the final call. And third, once a decision is made that will be it - the line will be around for the next 50 years. We can also be certain that affected landowners will not be on the Labour Party’s election bribery list. Let’s begin with the party policies. Labour’s policies on the matter are, as one would expect, am-
biguous. In a recent speech to the Energy Federation annual meeting, Trevor Mallard touched on the subject of ensuring the future security of electricity supply to Auckland and Northland. He conveniently reminded listeners that the major decisions surrounding the 400kV project would be made by Electricity Commission and Resource Management Act bureaucrats. Images of Mallard dressed as Pontius Pilate, with landowners nailed to
power pylons immediately sprang to mind. It would be interesting to see how many of the sacrificial lambs were voters within National Party electorates. Has anyone compared the number of National seats traversed by the route, to the number of Labour seats? Now these statistics would be interesting reading. Lindsay Tisch, National MP for Piako, expressed party policy views on the 400kV project in a news release on May 15. The thrust of Tisch’s message
was that supply alternatives, namely generation and DC, have not been adequately considered. On the face of it, the party policies are not entirely clear. Despite this, it would seem that Labour is more comfortable with the transmission alternative than National. On the other hand, it may all be a facade with generation in Auckland being the secretly favoured option. My point is, however,
who would know? The only sure thing is that the political parties are keen to postpone the issue until after the election and not otherwise. Listening to Labour politicians gives one the impression that decisions surrounding the 400kV project are politically neutral. This is far from the truth for several reasons. Pylons are in fact a product of politics. If it hadn’t been for Muldoon, pylons might not have
been so plentiful, because generation might have been positioned nearer to the biggest loads (such as Auckland). The rules governing the electricity system (the Electricity Act) have also influenced the rate of newbuild over “green fields” in previous years. The politicians create these rules. But most importantly it must be remembered that the Government owns the country’s pylons. TransTo page 15
COMMENT
Dairying Today
15
the election From page 14
power is a state-owned enterprise, which earns the Government a tidy annual profit. Last year, Transpower pocketed a six-month surplus of $77.3 million (after tax, ending December 31, 2004). More pylons and “pipelines� leading to Auckland will surely equal a fatter Government wallet. So, it is hardly surprising that Labour and National are pledging to retain ownership of Transpower for the coming political term. The Government is in fairly healthy position when one considers that its pylons, insulators and conductors run along easements over privately owned land which were bought (or acquired) based on the farming returns of the day and not the land’s ability to convey electricity successfully. It should also be noted that if Transpower (also known as the Government) doesn’t like a landowner’s asking price, the compulsory acquisition process can be used to acquire easements under the Public Works Act at a very modest price, all in the name of the “public good�. I wonder whether election bribes or third-term ministerial superannuation packages qualify as public good? So how does an Auckland-based generation alternative stand a chance against a transmission option conveying electricity all the way from the South Island? In terms of physical efficiency, it wins handsdown. However, in terms of the fatness of the Government’s purse it is likely to lose outright, particularly if the generator is a privately owned company. On this point, it is worth noting that a number of organisations have offered to build new generation plants in or near Auckland. These “offers� can be viewed on the Electricity Commission’s website page recording the Grid upgrade submissions. With such a huge potential for “conflicts of interest� in the Government ranks, one would expect that this potential was closely monitored and regulated by an independent body similar to that of the Reserve Bank. But alas, this is not the case. We have a body called the Electricity Commission, whose task is to “regulate the operation of the electricity industry and markets [including Transpower], to ensure electricity is produced and
delivered to‌consumers in an efficient, fair, reliable and environmentally sustainable manner�. However, the Electricity Commission is a Crown entity set up under the Electricity Act to oversee New Zealand’s electricity industry and markets. The objectives of the commission, which are in the Electricity Act and its underbody of rules and
higher than in most states in Australia and the US. The mess that we are facing is a direct result of the interventions and experiments by current and previous Governments. The 400kV transmission line project is the negative manifestation and the 600 landowners and townspeople will be the Government’s unwilling sacrifice. The construction of the
4HE DIFFERENCE IS 3OLUTRACEx THE SIMPLEST MOST EFFECTIVE WAY TO OPTIMISE HERD PERFORMANCE
%VEN STOCK GRAZING THE MOST LUSH PASTURES MAY NOT BE GETTING THE ESSENTIAL BALANCE OF TRACE MINERALS THEY NEED TO MAINTAIN PEAK PRODUCTION AND CONDITION "ECAUSE NOT ALL MINERAL SUPPLEMENTS ARE CREATED EQUAL WE BELIEVE YOU SHOULD CONSIDER THE l VE ESSENTIALS TO ENSURE YOU GET THE BEST PRODUCT FOR YOUR NEEDS 4ECHNOLOGICALLY ADVANCED INGREDIENTS n 4HE 3OLUTRACE RANGE OF BLENDS CONTAIN MINERALS IN THE MOST CONCENTRATED AND TECHNICALLY ADVANCED FORM 3OLUTRACE BLENDS SUPPLY A HIGH LEVEL OF MINERAL IN A SUPERIOR AMINO ACID FORM
#OMPREHENSIVE FORMULATION n 3UPPLIES EIGHT ESSENTIAL TRACE ELEMENTS REQUIRED BY DAIRY COWS “Politicians must be held to account before the election. All will be lost in the next term.�
regulation, are determined by the Government. And to assist their cause even more, the Resource Management Act and the Public Works Act also grant the Government strong powers in this regard, which are only checked by the upper levels of the courts. So it would seem that the accused (Transpower), judge (Government) and jury (the commission) are all one in the same and will be well placed to increase their financial take to record highs - unchecked. Now if that isn’t a “conflict of interest�, what is? The Parliamentary Commissioner for the Environment (PCE) paints a similar but subtle picture in a recently issued report. One is left pondering over the adequacy of institutional arrangements that are shaping “our� electricity industry. Another recent report by the PCE highlights more directly, the shortfalls of the Electricity Commission. I strongly recommend that these reports are read and considered in relation to Transpower’s 400kV transmission line project. I have only touched the tip of an enormous iceberg. Just look at today’s average price of electricity at around 18c/kWh, which is
400kV transmission line, if allowed to proceed, will fatten the Government’s purse and deliver a crushing blow to the property rights regime of New Zealand. No wonder Pontius Pilate Mallard is washing his hands. The affected landowners and townspeople only have days rather than weeks to make this a mainstream election issue. I suggest that the attention of the nation be captured sooner rather than later. A political spectacle will be a cheaper and more effective means to promote our cause rather than trudging through the courts until our wallets are empty. The politicians must be forced onto the alter of accountability before the election, whether they like it or not. Otherwise all will be lost in the coming term. I believe a march on Wellington is in order. To Parliament, Transpower and the commission we must go. These will be the places from which we can put fire into the debate and burn effigies of Craven. This is something the media will not be able to ignore. The 400kV pylons must become a pre-election pain and not another product of politics.
7ITH A COMBINATION OF COPPER ZINC MANGANESE BORON SELENIUM IODINE COBALT AND CHROMIUM
%ASE OF USE n 3UPPLIED IN A DRY FREE m OWING POWDER FORM THAT IS READILY AND TOTALLY SOLUBLE IN WATER YOU SIMPLY DROP THE REQUIRED DOSE RATE INTO THE DOSING SOLUTION AND IT WILL INSTANTLY DISSOLVE 6ERY STABLE IN STORAGE KEEP DRY AND THE BLENDS WILL REMAIN USABLE FOR MANY YEARS
6ALUE FOR MONEY n $EPENDING ON WHICH 3OLUTRACE PRODUCT IS USED A FULL DAILY DOSE COSTS BETWEEN CENTS 4HAT S JUST PER COW EACH MONTH #OMPARE THE PRICE AND ANALYSIS WITH ANY OTHER PRODUCT ON THE MARKET WITH OUR 3OLUTRACE FORMULATIONS n YOU LL SEE WE OFFER UNBEATABLE VALUE FOR MONEY
0ROVEN BY RESULTS n 5SED ON SOME OF THE LARGEST HERDS IN .EW :EALAND FOR OVER YEARS AND ON SOME OF THE MOST MINERAL DEl CIENT AREAS OF THE COUNTRY )N EVERY CASE 3OLUTRACE PRODUCTS HAVE PROVED EQUAL TO THE TASK OF BALANCING THE REQUIREMENTS OF EVEN THE MOST MINERAL DEl CIENT HERDS
3/,542!#% !-)./ !BSORBED THROUGH THE INTESTINAL WALL THE !MINO CHELATES TAKE A MORE DIRECT ROUTE TO THE BLOOD STREAM 4HIS FORMULATION CAN BE USED YEAR ROUND IN MANY AREAS OF .EW :EALAND GIVING YOUR HERD THE ULTIMATE BALANCE OF TRACE ELEMENTS
3/,542!#% $!)29 3OLUTRACE $AIRY PROVIDES A TOTALLY BALANCED BLEND OF TRACE MINERALS IN AN EASY TO USE SOLUBLE AND ECONOMICAL FORM 3OLUTRACE BLENDS CONTAIN EVERY TRACE ELEMENT KNOWN TO EFFECT THE PERFORMANCE AND HEALTH OF THE .EW :EALAND DAIRY COW
3/,542!#% #5 :).# 3PECIl CALLY DESIGNED FOR AREAS PRONE TO FACIAL ECZEMA 7HEN ADDED TO THE NORMAL ZINC DOSE 3OLUTRACE #U:INC WILL REPLENISH A RANGE OF MINERALS THAT ZINC DOSING TENDS TO STRIP OUT -INERALS IN THIS PRODUCT WILL NOT INTERFERE WITH THE UPTAKE OR EFFECTIVENESS OF ZINC IN COMBATING THE FACIAL ECZEMA THREAT
#534/-)3% 3/,542!#% 4/ 35)4 9/52 (%2$ "LENDS CAN BE CUSTOM FORMULATED FOR YOUR SPECIl C NEEDS
052#(!3% 3/,542!#% $)2%#4,9 &2/- !'6!.#% 6ISIT OUR WEBSITE FOR DETAILED INFORMATION WWW AGVANCE CO NZ
ENQUIRIES AND ORDERS
"!,!.#%
August, 2005
16
WORLD
Dairying Today
August, 2005
EU expects medium-term agricultural growth Alan Harman THE European Union says the medium-term perspectives for the EU meat and dairy markets appear relatively favourable. “These medium-term projections should lead to a 11.7 % growth in EU-25 agricultural income between 2004 and 2012 in real terms,” a new European Commission report says. The report says the EU meat markets have returned to a more normal situation after the extreme market
conditions of the past few years when they were hit by the second BSE scare, an FMD outbreak in 2001 and avian flu in 2003. The current situation in the beef market -- where consumption is higher than domestic production -- is expected to persist over the 2005-2012 period. EU-25 beef and veal consumption recovered rapidly after the BSE crisis and was higher than production in 2003 for the first time in 20 years. It is expected to remain so over the projection pe-
riod as production would decrease to around 7.6 million tonnes by 2012, in line with the structural reduction of the dairy herd and the impact of the introduction of the single farm payment. A tight domestic supply and a steady demand are projected to keep beef prices at a relatively high level, attracting more imports entering at full duty, notably from South America. The EU dairy sector is forecast to show a decline in the production of butter and SMP over the medium
The EU dairy sector will produce more, in line with quota increases, says a European Commission report.
term as more milk is used for the production of cheese and other high value-added dairy products. The overall increase in domestic milk demand in the form of dairy products should result in lower butter and SMP exports and a limited increase in cheese exports. Milk production in the EU-25 is projected to increase slightly over the medium term, in line with quota increases, to reach the level of 145 million tonnes by 2012. Milk production in the new member states, which account for around 15 % of total EU production, is projected to remain stable at about 22 million tonnes, as increasing deliveries to dairies -- in line with higher quotas -- are offset by the reduction in subsistence milk production. Production of butter in the new member states is forecast to show some short-term growth in response to price increases towards EU levels. Cheese production and consumption are expected to maintain their sustained growth after the slowdown observed in 2002, thanks to the gradual rebound of economic growth. “These projections result in an overall increase
in domestic milk demand in the form of dairy products,” the report says. “As supply remains limited by quotas, butter and SMP exports should shrink and cheese exports show only a limited increase.” The report says the income gain of 11.7% between 2004 and 2012 marked differences between the EU-15 and the new member states. “Whereas agricultural income in the EU-15 would show a rather modest development with a 4% growth over the 2004-2012 period, it has a more pronounced and positive trend in the new member states where it would rise steadily by 50.4% over the projection period.” The report says shortterm developments on world agricultural markets have recently been marked by the wide price fluctuations of 2003 and 2004. “Over the medium term, world agricultural markets are projected to be essentially supported by rising food demand driven by an improved macroeconomic environment, higher population, urbanisation and changes in dietary patterns,” it says. Meat markets, disrupted by trade restrictions following animal diseases -notably avian flu in Southeast Asia and BSE in North America – should expand production, consumption and trade with world meat prices showing moderate strength. “Prospects for rising meat demand would mainly emerge from a favourable macroeconomic environment of sustained income growth, notably in Asia and Latin America,” it says. The EU says the medium-term outlook for the dairy sector is expected to remain dominated by a strong expansion in global demand for dairy products.
NEWS BRIEF
Parmalat recall Alan Harman PARMALAT Australia Ltd recalled thousands of bottles of fresh milk in Victoria and South Australia because of a tainted flavour. It says it was conducting a voluntary recall of the products as a precautionary measure because some of them had a flavour taint from a batch of two litre plastic milk bottles. Dozens of different products, all in two-litre bottles and produced with use by dates between August 6 and August 17, are involved. It is the second recall in two months after milk was contaminated by a cleaning solution containing caustic soda accidentally contaminated in the same two states. A spokesman said the milk in some plastic bottles has absorbed a taint from the plastic containers. The source of the taint was being investigated. Parmalat says there was no health threat to consumers but the voluntary recall was a precautionary measure. Customers were asked to return the products to the point of purchase for a full refund.
NEWS
August, 2005
Dairying Today
17
Farm safety initiatives win awards TWO programmes aimed at improving safety on farms and lifestyle blocks are among the winners of the first New Zealand Community Safety and Injury Prevention Awards. FarmSafe, a nationwide programme aimed at changing the behaviour and attitude of farmers, was the joint winner in its category. A second rural entry from Injury Free Waimakariri was also commended in the awards. The group’s Down the Back Paddock is a programme designed for primary and intermediate schools that highlights the safety dangers of farms and lifestyle blocks. The awards are part of the inaugural Safety NZ Week, (August 7-13) which aims to put the spotlight on New Zea-
land’s injury rates and encourage Kiwis to keep themselves and those around them safe. The winners were announced at a safety expo in Wellington’s Civic Square. They were chosen from 35 entries from all over New Zealand. The main objective of FarmSafe is to change farmer and farm employee attitudes and subsequent behaviour towards safety on farms. More than 14,500 farm owners, staff and their families have been involved in FarmSafe training workshops in the past two years. The Down the Back Paddock programme from Injury Free Waimakariri incorporates classroom teaching and Farm Safety Days. It was piloted in two
schools in the last term of 2004 and has since been implemented at two more rural schools. The aim is to deliver Down the Back Paddock in one school per term. The safety and injury prevention awards were developed by the Safe Communities Foundation of New Zealand in conjunction with ACC. They are designed to recognise, reward and promote excellence in injury prevention and safety promotion. “Getting people to change their behaviour isn’t something that can be done quickly or something that can be done alone,” says ACC chief executive Garry Wilson. “Accident statistics on farms are alarmingly high and it is particularly
encouraging to see these programmes being taken up by rural communities, farmers, their employees and their families.” Dr Carolyn Coggan, director of the Safe Communities Foundation of New Zealand says the awards were an excellent opportunity to reward people working day after day to reduce the number of injuries in New Zealand. “I am delighted with the quality of entries and it is very encouraging to hear about new initiatives and programmes being developed to tackle the unacceptable and unnecessary rate of injuries in New Zealand.” The FarmSafe programme has been delivered to more than 14,500 farm owners, staff and families over the past
two years. The nationwide programme is aimed at the agriculture and horticulture industries where injury statistics are alarmingly high. FarmSafe was set up in response to a drive by ACC and Federated Farmers to reduce injuries on farms. FarmSafe is a consortium made up of three organisations -- Agriculture ITO, Agriculture NZ and Telford Rural Polytechnic. A free one-day introductory workshop, FarmSafe Awareness, received such an overwhelming response that two further programmes were launched. FarmSafe Plans provides the skills and knowledge needed to prepare and action an effective farm safety plan. FarmSafe Skills teaches and assesses competence in practical farming.
Fert payout $20/t BALLANCE Agri-Nutrients increased payout to paid up shareholders by the equivalent of $20 for every tonne of fertiliser purchased, up 8%, after a strong financial performance for the year ending May 31, 2005. The payout is made up of a rebate of $16.42 average a tonne, up $1.42, and a fully imputed dividend of 8c a share, the same as last year. This makes the combined rebate and dividend paid to farmers for the year $20.8 million, up 13%. Ballance reported a higher volume sales, up 5% at 1.5 million tonnes. “All regions achieved the same or better sales tonnage than last year, generating 10% more revenue at $458m.” The operating surplus, at $40.9m, is down 17%, caused by decision in the first six months of the year to absorb additional shipping, fuel and international raw material costs by holding fertiliser prices down. Twenty million dollars went into capital investment, the biggest share towards expanding a national distribution network of services centres and distribution stores, and advanced information technology systems. The cooperative also paid out $48.1m, the 20% shareholding of Ballance held by Yara, returning Ballance to 100% farmer shareholder ownership. Total assets at year end were $360m, up 10%.
"We've been grazing AberDart for 2 seasons now and we record an increase in milk production and milk solids every time the cows graze it. We've also used it on our deer farm and been amazed at the increase in velvet production when the spikers graze AberDart." Harry Koopmans Methven, Mid Canterbury
AberDart
HSG HIGH SUGAR GRASS
Perennial Ryegrass Phone 03-358 9748, Mobile 021-043 0021 Email margmort@ihug.co.nz
Germinal Seeds NZ Ltd
12491
18
Dairying Today
NEWS
August, 2005
Pedersen wants R&D back on priority list THE new president of Federated Farmers has put primary increase its budget to 3% of its massive GDP by 2010. Pedersen argues that while farmers spend a lot of their industry research spending near the top of his wish list as own money in research and development through levy orhe takes the reins from Tom Lambie. Lambie, recently retired president of Federated Farm- ganisations “the public is not investing as much in agriculture as it should be”. ers says it was “an absolute privilege” “We shouldn’t shirk away from it; we to have led 18,000 farmers for the past should not see it as old hat and unfashionthree years. able and should see this is the future.” “When Federated Farmers give you Pedersen has other goals he is deteropportunities in leadership, both in New mined to achieve during his tenure. Zealand and overseas you get exposed One of the biggest challenges facing to a huge number of people with a huge rural New Zealand, he says, is reinforcing number of ideas on a range of issues,” he the importance of agriculture to the mainsays. stream. Nowadays, he says, many people His replacement Charlie Pedersen are embarrassed to be associated with an will bring a different style to the presiagricultural nation. dency. He certainly brings a different To achieve his goals will require a makereputation, but says he is ready to shed over of tactics and style for Pedersen. The his image as a firebrand farmers’ leader. Charlie Pedersen days of shooting off his mouth on issues And he is firm on issues he wants to tackle. Pedersen wants to see more government money concerning farmers and getting away with it are a thing of allocated for spending on research and development in the the past. At the back of his mind will remain his father’s advice that “a person learns more by keeping his mouth sector. New Zealand’s agricultural research and development shut and ears open”. Pedersen acknowledges the criticism he faced for beallocation of $70m makes up 1.1% of the gross domestic ing outspoken and harsh. product (GDP). “As the vice president for the past three years, I was The US spends 2.8% of its GDP on research and development, Australia 1.6%, and the European Union plans to fulfilling a role and I think people will soon notice that I
Far from being a “sun-set” industry, agriculture is New Zealand’s economic present and future. Charlie Pedersen says more should be spent on agricultural R&D.
have changed to a different role.” But can a leopard really can change its spots? And after all, the federation’s relationship with the current government – whose policies they try and influence - can only be described as terse. Agriculture Minister Jim Sutton and the lobbyists have conducted a highly public spat throughout 2005 which stemmed from their acute differences over land access. Pedersen admits the federation’s relationship with Sutton is tense, although the two parties appeared to have called a truce at the recent federation conference. “We would have no trouble working with him should he remain the minister for agriculture in the next Government.” In his acceptance speech before 100 Federation Farmers delegates in Hamilton, Pedersen said he’s looking forward to his traditional three-year term but knows the next three years will be different to anything he has experienced in the 15 years since he started with the federation at Foxton.
‘Keep current driving age’ INCREASING the minimum driving age would disadvantage thousands of responsible teenagers for no benefit, said Charlie Pedersen, pesident of Federated Farmers. “While many New Zealanders’ thoughts are with the families of the Hastings youths killed on Friday [July 29], raising the minimum driving age will not solve the problem of road deaths,” said Pedersen. Federated Farmers strongly opposes the notion that the minimum driving age should rise to 16 or 17. Many rural people rely on the ability of their 15 and 16 year olds to drive themselves and their siblings home from school and extra curricular events, as there is no public transport in the country. “The issue of an appropriate driving age was thoroughly and
calmly evaluated by government in 1998. The evidence was clear – that age alone is not the key factor in road accidents involving young drivers.” International research concluded that age and experience were important and that drivers, regardless of age, were a greater risk during their first few years driving, said Pedersen. “As a result, New Zealand sensibly put in place a graduated driver licensing system with restrictions on newly licensed drivers. “Fifteen year olds cannot gain an unrestricted right to drive. The absolute minimum age this can occur is 16½ years, if they have passed an approved driving course. Otherwise the absolute minimum at which a young person can drive without restrictions is 17 years,” said Pedersen.
20
August, 2005
Dairying Today
Opinion EDITORIAL
Weak at home
Title at risk OWEN McShane, a well-known planning consultant -- among other things -- writes that Transit has embarked on a piece of bureaucratic brilliance that could affect farmers’ property rights. “If you want to get an idea of where our road transport is heading, and have a strong stomach, then go to www.transit.govt.nz/ news/publications and download the document Environmental Plan -- Version 1, November 2004,” he says. This, he claims, shows that Transit will “no longer allow access to state highways between existing settlements (among other things)”. Transit has allegedly told the owner of a Northland property that he cannot convert an old existing building unless he finds an alternative access to the road network rather than use his existing access via the front boundary. This means that he has effectively lost his title because it depends on road access. “And of course he has to pay for the alternative access because he has to buy the land off unwilling sellers,” says McShane. ”I have no idea how many landowners are affected by this policy but it seems to me to be a more serious assault on property rights than the land access proposals or anything else I can think of. ”A huge number of farmers and forest owners, will be affected.” Worth a look.
NATIONAL Party Maori Affairs spokesman Gerry Brownlee seems to be intent on dragging up any red herring he can find to get a rise out of the redneck belt. The latest one has Brownlee asking Parekura Horomia if he plans to fund more Maori surfing with taxpayer money. “Should scarce Te Puni Kokiri money be spent on surfing? Most taxpayers would say no,” thundered Brownlee, commenting after Horomia confirmed that Te Puni Kokiri provided funding from the Whanau Development -- Sport and Culture Fund, to assist in training coaches, judges and other surfing officials. If Brownlee left the lofty confines of Parliament occasionally he might realise that surfing is now a major professional sport that offers international careers for a gifted few, and New Zealand has some fine surfers. In fact, this has been the case for 20 years now. Funding for surfing is just as valid as it is for rugby. By harping endlessly about this type of rubbish, National risk being the “boys that cried wolf” and deafening the electorate to anything worthwhile they may have to say.
Gone to the dogs LAST week, politicians seemed to be devoting more time to dog-related issues than anything else. The Nats and Labour blocked newsroom fax machines with their ongoing argy-bargy about some draft proposal about dog welfare that is nowhere near becoming law, then the Feds started barking about microchipping again. The mock hysteria coming from the Nat’s PR machine was the most laughable, however. They claimed something to the effect that “Labour was going to force farmers to clean the scraps from the dogs’ bowls every day”. Apart from the fact that this is wrong, how many farm dogs leave bloody scraps in their bowl? And you thought tax and race relations were the major election issues!
EDITOR Adam Fricker Ph 09-913 9632, 021-842 226 Email: editor@ruralnews.co.nz
Published by Rural News Group
Head Office... 1st Floor, 4 Fred Thomas Drive, AON House, Takapuna, PO Box 3855, Auckland 1. Ph 09-307 0399. Fax 09-307 0122 Email Editorial: editor@ruralnews.co.nz Email Production: davef@ruralnews.co.nz Website: www.ruralnews.co.nz
Printed by: Times Colour Print
Publisher: Brian Hight General Manager: David Anderson Reporters: Hamish Carnachan, Heather Chalmers, Benedict Collins, Tony Hopkinson, Neil Keating, Sudesh Kissun Sub-editor: Peter Devlin ABC audited 31.12.04
26,446 circulation
Dairying Today is published by Rural News Group Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Rural News Group Limited.
SALES MANAGER Ted Darley Ph 07-839 4958, 021-832 505 ted@ruralnews.co.nz ADVERTISING REPRESENTATIVES: AUCKLAND – Jann Ross jannr@ruralnews.co.nz – Ph 09-913 9626 WELLINGTON – Mark Macfarlane markm@ruralnews.co.nz – Ph 04-234 6239 SOUTH ISLAND – Kaye Sutherland kayes@ruralnews.co.nz – Ph 03-337 3828 ON-LINE ADVERTISING – David Anderson davea@ruralnews.co.nz – Ph 09-913 9623
An offer you can’t refuse AYRSHIRE New Zealand certainly knows how to put a strong case to the media when seeking coverage. Its office manager Pam Allison sent out a press release on the Ayrshire agm and conference held in Taupo recently that concluded, “I thrust that you will find some room to include this in your next edition”. There’s an offer we can’t refuse. Miss one issue of Dairying Today and you miss a lot. Dairying Today readers are the best informed on what's happening on the farm and in the corridors of agriculture power. Dairying Today is posted to subscribers for just $40.00 a year (11 issues) GST included. Fill in and post the form with cheque to: Dairying Today, PO Box 3855, Auckland 1. Name: Address:
✄
Milking it
Red herrings
BASED on its track record downunder, it’s easy to form the opinion that Fonterra is not the world’s greatest deal-maker. It is a commodity trader and very good at it too, but it does not seem to perform well outside that comfort zone, reflected in the poor performance of its “value-add” business. The deal with that king of deal-makers Graeme Hart -- swapping Meadow Fresh assets for New Zealand Dairy Foods assets -- is the latest example. This deal has Fonterra buying back some key brands, like Anchor, which it sold following the merger of Kiwi and Dairy Group. Fonterra is trading a big chunk of Meadow Fresh plus writing Hart a cheque for $338 million. Hart effectively doubles his money -- he bought NZDF for just over $300m -- and, once again, Fonterra’s shareholders are out of pocket. If the Anchor brand is so strategically important, why did Fonterra sell it, along with NZDF, instead of Meadow Fresh? Other blunders at home have included the failure to grab Williams and Kettle, and to do a deal with Pyne Gould Guinness, RD1’s ally in the initial bid for W&K. Wrightson, led by Craig Norgate, gazumped them on both counts. The failed National Foods takeover bid also raised some eyebrows, although Fonterra had its supporters for refusing to overpay for the Australian company. A deal has been struck with Bonlac suppliers to secure control of their debt-ridden company, so Fonterra’s Australian strategy is progressing, albeit it in a more parlous state than would have been the case with the much stronger National Foods. At a much lower level, Fonterra has been criticised for the way it handled the sale of the Dairy Exporter, which it inherited with other ex-Dairy Board assets. A major Australian publisher was among a small group asked to tender for the magazine, but refused because of the way the deal was being handled. In the end, Fonterra did a deal with a publisher, structuring it in such a way that all dairy suppliers were forced to continue subsidising the magazine with a subscription deducted from their payout, while still allowing the publisher to rake in sufficient advertising revenue to pay its bills and then some. Without this very generous commitment made by Fonterra on behalf of all dairy farmers, who had no say in the matter, the publisher would be forced to distribute the magazine free to all farmers in the same way all the other agricultural publishers now do. Industry good content, much of which comes free from the likes of Dexcel, would not be compromised.
Phone:
/
OPINION
August, 2005
Dairying Today
21
City influence inevitable for many I will never forget the look of horror on a girlfriend’s face when she realised that the milk I had put in her coffee had come straight from the cow. Her face turned the same colour as the milk when I asked her where she thought it came from. Of course she was a townie, and we dined out on the story for years. So it came as a rude shock to find myself cast as the butt of the rural joke in Lousia Herd’s article “Sterile new world brings its own problems” (February 2005). It turns out that after years of considering myself as a true blue country girl I seem to have turned into the very thing I used to find so funny. In this case an Amazonian Power Mummy, Queen of the Sidewalk and ferocious protector of my very own designerclad offspring. In my defence, the des igner duds came from my son’s very proud rural grandparents, who after waiting so long for their first grandchild should be forgiven for spoiling him just a little bit. But as for the rest - there it was in black and white. I have become a townie. And I am left wondering how this could have happened to me. It doesn’t seem all that long ago that I was a green, fresh-faced country girl heading off to make a new life in the big city. At the time it was a huge culture shock. Mum and dad, with somewhat damp eyes, dropped me off at the concrete high-rise inner city hostel I was to call my home. After growing up with wide-open spaces and room to breathe it felt like anything but. Although I was looking forward to having some fun out of the watchful eye of our local community (who to my disgust used to report back to mum and dad), city living was harder, faster and crueller than I expected. People seemed to be too busy doing their own thing to be bothered looking out for anyone else. I think the change happened so slowly that I really didn’t notice. Looking back it probably started with dreaded coffee mentioned in Louisa’s article. I never really liked the Te Hana truck stop variety.
Don’t get me wrong, there was nothing at all wrong with it. It was just a bit too straight up for my liking. Didn’t pull any punches if you know what I mean. Designer Coffee was just becoming cool (which is really showing my age) and I was seduced by its sophistication. It started quite innocently with a cappuccino, which in those days was just normal coffee with a bit of fluffy milk on top, bearing no resemblance whatsoever to the smooth creamy things on offer from the professional barista of today. Nevertheless, heady on caffeine my confidence grew and soon I was capable of taking on any snotty Ponsonby pretender who messed with my brew. I liked mine with a dash of arrogance and a little superiority. Sadly, it was the first step away from my country roots and it wasn’t to be the last. Before you flay me alive as a traitor to my upbringing, mine is not a case in isolation. As your well-brought up country kids are faced with the need to go to the cities for work and education, they too are being changed by city living. Many “ignorant townies” are also the children and grandchildren of farmers. Sure they may turn up during the summer holidays and lounge around using up your tank water. They might wax lyrical a bout the idyllic country lifestyle you lead, blissfully ignorant about the realities of starting your day at 4am and the joys of being crapped on by your livestock. But life would be poorer if country and city life didn’t meet up every so often. Life on the land is a good leveller, and it’s worth having your city cousins to stay – even if just for a good laugh. One of our friends is a highflying Manhattan based lawyer, blessed with good looks, loads of money and a great sense of humour. I might just feel a bit inferior to him, if it were not for one memorable visit to the farm when he was about 7 years old. My dad took him down to the cowshed and told him that in order to get milk out of the cow he had to stand on one leg and stick his tongue out while he was putting on the cups. He followed those instructions to the let-
ter and the rest of us laughed until it hurt. Needless to say that no matter how expensive his suit, I still remember
that earnest little boy! But despite my passing resemblance to an Amazonian Power Mummy, it seems I can still admit when I’ve gotten too big for my britches and enjoy a laugh at my own expense. I guess that means I’m still a country girl at heart after all. • Raewyn Hewitt was raised on a dairy farm near Wellsford. After practising law and working in several corporate roles she is now a freelance writer.
“Many ignorant ‘townies’ are the children of farmers.”
Roehl-Acres Loyal Mastery, VG 85
Hosuma Toosje No. 11
Silverlea Faraday #51
RGK Bjorn Bjorne Refsgaard
Dam: Tahora Romeo Tonio EX
22
OPINION
Dairying Today
August, 2005
Let’s Talk Dairying Again - the outcomes Peter Bodeker Dairy InSight CEO MOST of you are familiar with the “Let’s Talk Dairying” public awareness campaign that Dairy InSight has run over the past two years. I can say that with some confidence thanks to the results of the follow-up research we recently commissioned from ACNielsen. The research also confirmed a strong positive response to the campaign amongst both dairy farmers and the wider public. The primary intention of Let’s Talk Dairying was to raise the profile of dairy farming, attract new staff
and young farmers, and remind New Zealanders what an enormous contribution it makes to the national economy and well-being – something an increasingly urbanised population and media has tended to overlook during recent years. Let’s Talk Dairying was developed in response to
public perceptions of dairy farming and falls under the ‘community interface’ platform of Dairy InSight’s Strategic Framework for Dairy Farming’s Future, which guides Dairy InSight’s investments. This platform includes community impact initiatives which aim to ‘positively promote the improved practices and contribution of dairying so that the industry’s social, environmental and economic goals are aligned with those of the community’. The ACNielsen research was particularly encouraging in highlighting the increasing awareness of the campaign and its main themes amongst the key audiences. The three
Reduce costs and farm more effectively with maps from Farm Mapping Ltd. Contact us for a free quote and samples
Phone 0800 433 855 www.farmmapping.co.nz
Quality dairy hot water cylinders 180 litre – 1200 litre available for new or replacement installations. Optional stainless steel case. Stainless steel barrel now available, 600 litre x 1650mm high. Superheat Popular Sizes (measurements in mm) 610 dia x 1330 high 610 dia x 1550 high 610 dia x 1750 high 710 dia x 1350 high 810 dia x 1050 high 710 dia x 1660 high 810 dia x 1400 high 710 dia x 2010 high 810 dia x 1600 high 915 dia x 1400 high 810 da x 1900 high 915 dia x 1500 high 810 dia x 2200 high 915 dia x 1700 high 915 dia x 2050 high 1160 dia x 1400 high 915 dia x 2400 high 1160 dia x 1650 high
3kW 3kW 3kW 3kW 3kW 2 x 3kW 2 x 3kW 2 x 3kW 2 x 3kW 2 x 3kW 3 x 3kW 3 x 3kW 3 x 3kW 3 x 3kW 3 x 3kW 3 x 3kW 3 x 3kW 3 x 3kW
SUPERHEAT STAINLESS SIZES
600 ltr 1000 ltr 1200 ltr
920 dia x 1650 high 1170 dia x 1640 high 1170 dia x 1865 high
3 x 3kW 3 x 5kW 3 x 5kW
Special sizes available on request. Superheat cylinders include elements, thermostats, valve pack, vacuum break and sight tube.
1000 litre x 1160 x 1650 high stainless steel case dairy hot water cylinder.
Available from your local dairy merchant. Manufactured by:
Multi Machinery (Superheat) Ltd www.superheat.co.nz or phone 03-389 9500 for details of your local merchant
Licence 2509
NZS 4604
The research also indicated that public awareness of the dairy industry’s contribution to the economy has increased since the first Let’s Talk Dairying campaign. Respondents were keenly aware that dairying was a ma-
jor export earner, economically important and the industry was a major employer. They also noted that New Zealand is one of the largest dairy exporters in the world and one of the most efficient milk producers.
Capital structure fears overstated
FARM MAPPING
180 ltr 225 ltr 270 ltr 270 ltr 270 ltr 350 ltr 350 ltr 450 ltr 450 ltr 500 ltr 600 ltr 600 ltr 700 ltr 700 ltr 800 ltr 800 ltr 1000 ltr 1000 ltr
main themes of the Let’s Talk Dairying promotion were lifestyle, technology and economy. These were the focus in order to promote dairy farming’s rich and satisfying lifestyle which is becoming increasing reliant on emerging technology, which in turn sees dairy farming as a major contributor to the country. Amongst respondents outside of the dairying community, the research found a good level of awareness around the three advertisement themes. Some of the key takeouts in regards to lifestyle were around dairying being an attractive industry to get into and a rewarding one for families.
DAIRY HEAT sizes
200 ltr 600 dia x 1295 high 3kW 300 ltr 710 dia x 1330 high 3kW 400 ltr 710 dia x 1820 high 2 x 3kW
Valve pack and sight tube extra for DAIRY HEAT cylinders
DEAR Sir Phillip Berry’s letter in your July issue raises concerns that Fonterra’s current capital structure, particularly the fair value share, is a risk for capital in the co-operative and a potential cause of a loss of dairying land. These concerns are not new. They were in fact a significant factor in the recent changes to our capital structure, which received a ringing endorsement from shareholders in May of this year. These changes provide additional flexibility and choices for farmers, including the option to supply contract milk, and were specifically designed to address the issues raised. The main concern appears to be that the value of Fonterra’s shares is presently increasing more rapidly than payout, which may put farmers off entering the industry and discourage existing farmers from increasing milk supply. The other concern is that the high share price may lead to a run on capital. The value of Fonterra’s shares reflects the expectations of the Independent Valuer (currently Standard & Poor’s Corporate Value Consulting) concerning future ‘value-added’ earnings of Fonterra. These are future earnings from Fonterra’s investments in processing plant and in assets such as Fonterra Brands and the
intellectual property attached to our value-added ingredients. The rising share value reflects the valuer’s assessment that these earnings will grow over the next few years. As these expected increased
earnings are realised, they will make a greater contribution to payout. Consequently, it is quite possible for payout to increase faster than the Fair Value Share once these earnings come on stream. That the current share value reflects expected higher future valueadded earnings is a very strong driver of performance. It is important for our shareholders that any future changes to Fonterra’s capital structure do not weaken this incentive. The impact of a reduction in supply will depend on how it affects Fonterra’s value-add earnings. If the milk loss results in significant excess
capacity, then lower fixed cost recoveries would be likely to cut the value of a Fonterra share, rather than stimulate further increases, as is suggested. It is also worth noting that Fonterra’s constitution provides for the board to request a fresh valuation in such a situation. For example, the share price would not reach $10 without Fonterra’s value-added earnings making a much larger contribution to payout than they do now. Shareholders would therefore have to factor in a correspondingly higher payout when deciding whether to leave the co-operative. The breakaway of Synlait is used as an example of how redemptions impose a cost on remaining shareholders. This is simply not the case, as Fonterra typically issues capital notes to fund amounts withdrawn by shareholders. The value-add earnings that would have gone to exiting shareholders are more than sufficient to service interest paid on the additional capital notes, leaving remaining shareholders no worse off. With respect to the potential loss of land to other activities, maintaining and growing the extent of land devoted to dairying depends on returns from dairying remaining competitive. Largely, these returns will To page 24
Dairying Today
August, 2005
23
Agribusiness J.Swap: a growing influence Adam Fricker WATCHING David Swap walking among his cherished Hereford bulls, it’s easy to forget he and his brother Lewis are starting to have a major influence on the transport, contracting and stockfeed supply infrastructure that supports dairy farming—particularly in the North Island. The J Swap signage is common on trucks and heavy machinery in rural areas. Less obvious is the bulk storage capacity the company now controls in strategic distribution points covering the entire North Island, and one South Island location. The huge investment in storage capacity was made to support the latest business interest for the Swap family, transporting palm kernel (PKM), soya and copra meal, in partnership with Hunter Grain. The commodity game is all about price, and he who can ship and store in the greatest quantity, usually wins the price war. The huge growth in palm kernel used by dairy farmers has vindicated Swap’s potentially risky move into the stockfeed game, but it made sense for a company geared up to shift bulk product, especially since the palm kernel peak comes during Swap’s traditionally quiet period. Hunter Grain came looking for a partner with resources, a track record in transport, and good infrastructure, and through Hunter Grain manager Richard Price – who grew up with the Swap family – found J Swap. “In such a capital intensive business, these things are vital,� says David Swap. “They [Hunter Grain] couldn’t have got that level of partnership anywhere else.� Moving into stockfeed has been relatively seamless for the Swaps, who have a long history of working with farmers. David Swap is surprisingly passionate about farming for a contractor – the family collectively owns a reasonable chunk of farmland - and spares no expense on his purebred Herefords. He runs 200 breeding cows and sells steers at about 20 months. “I’ve always been interested in farming,� he says. “We go onto a lot of farms in our line of work, and have made
some very good friends in farming. It’s part of our way of life and the stockfeed business is something I understand.� Swap likes excellence to be rewarded – which is partly why he won’t discount his contracting services: “If a farmer says he can hire a cheaper contractor, I say ‘hire him then’. They might seem cheaper but they will also likely be less efficient, less skilled and end up costing more in the long-run.� He believes the dairy industry’s success is well deserved and says the service industry is contributing to that success by setting itself the same high standards. “The dairy industry is doing well, and we want them to do well. I love to see people succeed; it’s important to me to see a happy family successfully working together.� His own family has prospered on this philosophy. J Swap Contractors is a family-owned company, deeply involved in its Matamata community. The directors are David and Lewis Swap, sons of company founder Joe Swap. Their families also work in the business. David’s sons are Stephen (Transport Manager), Cameron (ISO/ QA Manager) and Morgan, who is part of the supplementary feed operation. Lewis runs the quarries and the workshop. His sons are Andrew, the Transport Maintenance Manager, and Michael, who is a contracting project manager, while his son-in-law Simon Carter is the Quarry Repairs Workshop Manager. Based in Matamata, J Swap is immersed in one of New Zealand’s most productive farming regions. During more than 70 years the company’s services have “responded to the changing needs of its rural clients�, to quote the comTo page 25
David Swap and family are having an increasing influence on dairying.
We supply quality hoof care products: • Hoof cutters • Cowslips • Knives • Aprons • Formalin/Bluestone Mat • Hoof-A-Matic
Ph: 03-302 0884, 027-483 8881 email: veehof@xtra.co.nz
4HE BEST TEAT SPRAY STILL NEEDS EFFECTIVE APPLICATION
IF VALVE YOUR TACH� E D “ IS U ED YO P EQUIP E S U N CA
7E HAVE BOTH 4HE +ONT!#4˜ TEAT SPRAY RANGE THAT OFFERS SUPERIOR SKIN CONDITIONING WITHOUT COMPROMISING BACTERIA KILLING ABILITY !.$ A SPECIAL OFFER ON THE PROVEN 3AFESPRAY TEAT SPRAYER 4HE ONLY THING WE DON T DO IS SPRAY THE TEAT FOR YOU &OR MORE INFORMATION CONTACT YOUR LOCAL $E,AVAL DEALER OR 0H !VAILABLE FROM PARTICIPATING DEALERS AND CONDITIONS APPLY
STEP 1
STEP 2
R
FE /F
IAL C E
STEP 3
3 STEP 4
Available from leading farm supply stores Or call 07 880 9090
P
24
AGRIBUSINESS
Dairying Today
August, 2005
Limestone country produces top cheeses Heather Chalmers THE limestone country of North Otago is the starting point for boutique cheese company Whitestone Cheese’s award-winning range. From humble beginnings almost 20 years ago, the Oamaru business has grown in size and reputation, while still retaining the benefits of a small-scale operation. Founder and managing director Bob Berry says Whitestone Cheese had gradually grown its range and sales, and most importantly its cheesemaking skills. While Berry concentrates on the marketing side of the business its cheesemakers have all made a contribution over the years, culminating in its head cheesemaker Jason Tarrant being named New Zealand’s Champion Cheesemaker at this year’s Champions of Cheese Awards, the first time the title has been awarded. Whitestone now offers 17 varieties of specialty cheese -- three blue styles, four white mould styles,
six semi-soft, including two sheep’s milk, and four fetas. “We’re always experimenting and looking forward to releasing a sheep’s milk blue later this year.” The whole specialty cheese market is growing and Whitestone has had great success with blues in particular, Berry says. Whitestone also offers an AgriQuality organic certified selection, with supply limited to 40% of its production. The milk comes from former Federated Farmers’ president Tom Lambie’s organic dairy farm at Totara Valley near Pleasant Point, South Canterbury. Its sheep’s milk now comes from a property inland from Maheno, south of Oamaru. Product is sold throughout New Zealand at retail and food service level, with 15% of production exported to the US and Australia. “It has taken us a long time to establish our brand in the market.” Initially the cheesemaking venture was a sideline to Berry’s Maheno sheep,
beef, and cropping farm. The cheese business has now outgrown the farm, which has been sold. Berry says he set up the business in 1987 when farmers were going through a difficult time and were looking to diversify. “The wine industry was starting to take off and I saw an opportunity for specialty cheese to tap into changing palates.” Whitestone, which now employs 25 staff, takes its name from the region’s distinctive limestone. A popular café and retail shop was added about six years ago alongside its factory on Torridge Street. Whitestone continues to collect awards, including this year’s champion original cheese award for Whitestone Farmhouse and champion blue-veined cheese for Moeraki Bay Blue. In 2004, it won champion brie. Its Windsor Blue is New Zealand’s most decorated cheese with nine trophies and 10 gold medals. “The key to the whole business is the quality of the milk from this region.
Whitestone Cheese founder Bob Berry with his award-winning cheeses.
There are regional differences in milk, as with wine, influenced by pasture, climate and water. So we’ve got a good raw material.” Whitestone always has a few experimental cheeses on the go, one of the joys of running a boutique cheese factory, Berry says. Its cheesemaking technique is traditional open vat, with three vats processing 1500 litres each. “Our style of cheesemaking is half technology and half craft.” No artificial additives are used and the rennets, starters and cultures are all natural products. “We haven’t tried to clone cheeses, but to make cheeses original to us.” Whitestone also uses local districts where possible in naming its cheeses including Airedale, Totara, Livingstone, and Moeraki Bay.
Capital structure fears overstated From page 22
reflect future commodity prices and exchange rates and changes in on-farm productivity. Many commentators consider that the medium-term outlook for dairying is positive given growing global demand for dairy products and the supply constraints facing producers worldwide. Of course, this confidence over the medium term is also likely to have contributed to firmness in dairy land prices. Changing farm economics have also increased the efficient scale of dairying, leading to farm consolidations and higher average herd sizes. These factors inevitably increase entry costs for new investors. Today, however, increasingly diverse ways for younger farmers to gain a stake in the dairy sector exist. Sharemilking arrangements remain important, but these are being supplemented by new approaches, such as providing farm
managers with profit shares and equity stakes. It is important for dairying’s future that we harness these trends. Even though the valuer forecasts Fonterra’s value-add contribution to payout will grow over the next few years, the largest drivers of farm-gate returns to dairy farmers, and thus of milk growth, for the foreseeable future will be world dairy commodity prices, exchange rates, and what happens on-farm. As I noted earlier, many commentators have a positive view about the long-term outlook for dairy commodity prices given continuing growth in global demand for dairy products. But the New Zealand dairy sector must maintain and increase its rate of on-farm productivity to remain
internationally competitive. And it must do this in ways that are environmentally sustainable. These factors, rather than Fonterra’s capital structure, are the major challenges to maintaining future milk growth and are a significant current focus. That’s not to say, however, that future changes to Fonterra’s capital structure won’t be necessary. Any dynamic business must always be open to ongoing change, and Fonterra is no exception. However, it is important that changes to Fonterra’s capital structure now or in the future retain its most desirable features, such as Fonterra’s co-operative status, while addressing areas of concern. Alex Duncan Director Economics Fonterra
AGRIBUSINESS
August, 2005
From humble beginnings Phil Whyte J Swap Contractors Ltd had its origins in 1934 when Joe Swap went into business selling shingle from riverbeds to Waikato farmers. The company later expanded into swamp drainage and general contracting. Over the years Swap has grown and diversified – into quarrying, transport, civil contracting, plant hire and bulk storage – but agricultural work has remained a core Swap business. Swap has worked on major civil projects including the Matahina Dam construction, Route PJK in Tauranga and other significant roading work for Transit NZ as well as local authority projects. In May the company played a key role in the cleanup of the Matata straights. Swap also has a series of contracts for ongoing forestry roading work. Swap took on a major new direction on acquiring its first quarry in 1969. The company now operates 10 quarries. Directors David and Lewis Swap point to the stability of quarrying compared to the many risks built into the contracting business – quarrying is a land use akin to farming in many ways. Transport has been another major new move for Swaps during the last two decades, and the company is now one of New Zealand’s most significant operators with 60 truck and trailer units, many of which run 24 hours a day. Swap has significant bulk distribution contracts as well as the work its own activities generate. This transport arm is run in conjunction with large bulk storage facilities at Mt Maunganui, Matamata and New Plymouth. Swap’s latest move has been associated with its on farm contracting work – distribution of supplementary feeds (palm kernel meal, copra and soya bean meal) in association with Hunter Grain.
Samen exports to China TRADE Negotiations Minister Jim Sutton last week presented livestock genetics company Samen with a gift from the Fujian provincial government in recognition of the bulls exported there. Sutton presented an elaborate vase to Samen chief executive Cees van Baar in Wellington. A Holstein bull and a Jersey bull were selected in New Zealand earlier this year, and Sutton presented their purebred certificates and photos to Fujian province Vice-Governor Liu at the inaugural Sino-New Zealand dairy seminar in Beijing attended by 185 Chinese Agriculture Ministry officials, Chinese Dairy Association representatives, Chinese businessmen, and New Zealand representatives in June. The animals will go to China in November.
Sutton said there was a strong dairy industry established in Fujian province. “From the trade mission I led there earlier this year, I can see a lot of opportunity for New Zealand companies to sell equipment and expertise in the region.” Sutton said there was no way the Chinese dairy industry could supply all the demand for dairy products within China. “The Chinese economy is growing significantly. As its people get wealthier, their tastes are changing. Dairy products are increasingly attractive. “As well, many local and state governments are introducing school milk programmes in order to improve the nutrition of their young people, and there is a lot of opportunity for New Zealand to supply dairy products in the offseason there.”
CANTERBURY DAIRYING IS ONE OF OUR SPECIALTIES Considering a move south? Want to know what is really happening? Want to be informed as it happens? Need a good contact in Canterbury? Contact... CHRIS MURDOCH • 03-307 9191 (wk) • 03-307 2940 (a/h) • 0274-342 545
A growing influence From page 23
drainage to bring land into production. More recently the rising value of land in the area has meant maximising the farmed area, and many gullies and other ‘dead’ areas have been contoured into production. Changes in dairy farming practice have put more demands on contractors’ knowledge and abilities. For instance, races on larger amalgamated units are no longer tracks – their construction is closer to road construction. Underpasses and bridge construction are also significant projects these days. In turn, the rural work has given Swap a broader base than many contracting companies. The company is among the largest offering contracting services to farmers in the North Island. It can bring whatever equipment is required for any scale of farm project, backed up by a large workshop with mobile
Dairying Today
25
reproduction. However prounits. Of all the components tein supply is hit when pasof J Swap’s latest farm initiature matures after Novemtive – supplementary feed ber each year. At this time PKM has been the most popenergy levels and digestibilular since it was introduced ity are also low, while fibre into New Zealand in 1999. levels are high, leading to Copra and soya bean meal heat stress and loss of apare more specialist supplepetite – and cows then use ments. These imports have up the condition put on over increased exponentially each previous months as a protein year – from 35,000 tonnes in and energy source. 2003 to 90,000 tonnes in Pasture protein can fall 2004 to over 200,000 tonnes to 13% in summer – cows in 2005 – as the farming fraternity has accepted these J. Swap Kenworth hauling PKM out of Port need 17% at this time. Feeding PKM is one option to feeds. Tauranga. maintain cow condition unThis acceptance has been der such circumstances. It helped by overseas practice, ping the ticket. and research in New Zealand. Supplementary feeds supply es- can be mixed with other products Massey University’s dairy units sential nutrients that animals can- such as maize or grass silage or fed are customers for Swap supple- not take from pasture at certain straight from trailers or other portable containers. Because of its dry mentary feeds. times of the year. Swaps and Hunter Grain have Protein is one essential nutrient nature cows do not tend to gorge developed a direct-to-farmers ap- – for muscle growth, repair and themselves on PKM, ensuring that proach, with no middlemen clip- synthesis of body tissues and for every cow in the herd will be fed.
26
WORLD
Dairying Today
August, 2005
Management Plenty to learn from intensive Holland Koos Baars ON A recent visit to Holland I was inclined to think that in another 20 years, the countryside will have been rolled up, as it were, to build and construct more houses, industrial premises and motorways. Walking and cycling through polders [reclaimed land], woods and fields of heather, grateful for what is left: enjoying the last remains of nature and suddenly appreciating that a lot of nature is now recreated from scratch you realise the problems of intensive agriculture in this tiny country. The loss of the Dutch landscape is incurred more or less necessarily with the need to take part in the global economy and earn a living for 16 million people on an area the size of a quarter of the North Island. What is government doing to protect the landscape? Landscape policies
are based on the theme of “making choices”. On the one hand, zones are being defined for intensive farming, for the development of huge industrial sites and for the building of many homes; even completely new cities have been developed. The Dutch Government’s long-term plan for the landscape were recently laid down in great detail in the National Spatial Strategy Summary, a plan comprising the spatial layout of the Netherlands for the coming 25 years. The starting point is that spatial policy must contribute first and foremost to a ‘strong economy, a safe and liveable society and an attractive country’. Who can disagree with such a general statement? But how does this relate to agriculture? There are many factors that impact on a farmer’s business. A lot of rules and regulations now originate from the European Union, as is to be
expected. One of these is that intensive agriculture must not encroach on the vulnerable, natural areas designated valuable by the EU. In this respect there are a number of restrictions on the use of manure and fertilisers relating to the environment, which have implications for farmers. As nitrates and a cap on nitrogen use to decrease inflows of nitrates into Lake Taupo are now being discussed in New Zealand it is interesting to report on what is happening in the Netherlands. The EU’s Nitrates Directive aims to curb the introduction of excessive levels of nitrates into surface waters and groundwater from agricultural fertilisers and wastes. Member States must monitor surface waters and groundwater, identify nitrate-polluted waters, and designate vulnerable zones (i.e. zones draining into ni-
The Dutch experience - improving water quality through legislation - is where New Zealand is headed.
trate-polluted waters). Excessive nitrate levels cause undesirable ecological changes in water, as we are well aware from our lakes and rivers. They are a factor in harmful algal blooms and also have adverse public health implications. In Europe there has been for many years a precautionary limit of 50mg/litre for treated drinking water. The Nitrate Directive to surface and ground water has also applied this limit. Dutch farmers have had to reduce nitrate leaching. For many years Dutch farmers were not allowed to return more than 170kg of nitrogen in manure per annum. Getting rid of manure by applying it to fields
with heavy machinery or selling it to cropping farmers, often at a loss is a big problem. However, a few months ago a committee in the EU proposed to increase this quantity to 250kg per annum. The reason for this exception is that from recent scientific research it was found that, on the Dutch soils, grass is capable of taking up far more nitrogen than was thought in the past. Leaching of both nitrogen and phosphorus was far less than was assumed from earlier trials. On Dutch soils, the European standard of not more than 50mg of nitrate per litre in the upper layers of the ground water can now probably be reached
MIX YOUR FEED MIX YOUR FEED
SEKO MIXING AND CHOPPING WAGONS •• 99.6% 99.6% mix mix in in 5-7 5-7 mins mins •• Independent Independent hydraulic hydraulic system system -- no no hydraulic hydraulic hoses hoses to to plug plug in in •• No No wastage wastage on on feedpad feedpad -- unlike unlike feedout feedout wagons wagons •• Chops Chops all all bale bale sizes sizes •• Get Get more more bre bre into into cows cows diet diet
0800-4-AGNET 0800-4-24638
with an increase of 170 to 250kg of nitrogen from animal dung per annum. However, the European Commission has not yet passed this new standard, which has been accepted by a member committee of the EU states. Decision taking in the EU is often a long drawn-out process. This change has to be incorporated in a model called MINAS (Mineral Accounting System), where quantities of applied nutrient from different sources are considered in their detrimental effects on the environment. MINAS, like New Zealand’s Overseer, is basically an in-and-output model for the nutrient flow for a farm. Hence artificial fertiliser, animal dung and urine, and supplements are inputs. This MINAS, which was introduced many years ago, has the specific objective to restrict nitrogen and phosphorus surpluses in Dutch agriculture. It is a compulsory system for balancing amounts of nitrogen and phosphate that enter and leave Dutch farms. Its inputs take account
of the nutrient requirements for a farm as well as the nutrients supplied from organic manures, soil and fertilisers. It will allow the user to develop a nutrient and manure application plan for different blocks on each farm covering the use of major nutrients. The plan can be modified during the season and actual applications have to be recorded. Many problems with the use of this model have arisen for example how to measure inputs of nitrogen fixation by clover accurately and obviously the science needs updating all the time. The EU has also complained to the Dutch that older versions of this model did not do enough to protect the environment and standards had to be changed. This pressure will result in MINAS itself being discontinued in 2006. While it has been effective the outputs to the environment have been too large. This may be due to bad record keeping and/or deficiencies in the models used. It will be followed To page 28
MANAGEMENT
August, 2005
Dairying Today
27
World of difference between two Canterbury soils flood to low flow within 10 days,” says Spark. Nitrogen goes on at 180kg of N a hectare. To help cut back lameness problems on the stony soil, Spark is moving away from the long-time Friesian stud bloodlines to Jersey/cross cows. “They are lighter on their feet. We have always had Friesians due to the
volume payment for town milk, but that’s changed now.” The move to the stony Lismore soils has enabled the business to expand, but it’s still a tight unit. Only Spark and two staff run the farm, which he believes has the potential to do up to 1600kg MS/ha, all on grass providing the irrigation supply can be maintained.
Paul Spark
E T LY L E N B V O ILA UR A O AV M Y O FR
NO
EW
ND
BL
ZEALA
Optimise Status Minimise Stress Realise More From Less
AVA I L A
E IN N
hectares. While the soil has little water-holding capacity the upside for Spark is no winter pugging after the heavier soils of the old farm, and the ability to grow crops over winter and have all the herd grazing on it. “It is a light soil, but as long as you can put the water on, it will certainly grow grass,” he says. Converting from a sheep property has meant some experimentation with grass types. The feed profile for a town supply property demands good feed levels year-round, and Spark has begun to sort out what can and can’t deliver over the cold winter months. Meridian winter active ryegrass has proved to be a good performer. “It is an older grass now, while long rotation Matrix is proving an effective fescue-rye mix. Longer term Spark can see this and Meridian forming the basis of the farm’s mix.” Bloat has been a big issue in the past, with up to 70% clover, and over three-quarters of the farm now re-grassed. On some days the whole herd had to be bought in and drenched, with more time consumed spraying paddocks with bloat oil. “Last year we used Rumensin Trough Treatment for the first time, and the problem has been fixed. In the past you would be afraid to go away because of the risk, let alone the money and time spent checking and spraying.” He has also had good production gains with TT. Up to Christmas this year he was 12% up on the year before, “with no other real change in what I did.” A dry patch in later summer took the top off that gain, but he still expects to be 7% up on last year. “I can only put it down to the Rumensin. It is not often I go for a new product, but in this case it really has paid off.” Water comes from the Waimakariri Irrigation Scheme, not the plain’s most reliable because of the Waimak’s catchment, but at $60 a hectare a year to run, certainly a cheap one. “Summer can still be a white knuckle affair though…you really have to watch the flow rates from November to April because it can go from
W
FROM the heavy Templeton soils to lighter Lismore gravels east of Rangiora is about as great a contrast you can get on the Canterbury Plains. For the Spark family, moving their town supply operation from one extreme to the other has proved a challenge, but they are turning it to their advantage. Paul Spark and his wife Lisa are equity partners and sharemilkers on the family’s 217ha operation just out of Rangiora. In a region full of recent dairying arrivals the Spark’s are something of a rarity. The family has been dairy farming in the region for 50 years, but only the last four on their present location. “The original farm was on the heavier soils on the other side of Rangiora, quite swampy and wet, and we wanted to expand which was not an option there,” says Spark. The decision was made to buy land on the other side of Rangiora, on the light stony country fed by the Waimakariri Irrigation Scheme. Buying the larger 217ha unit provided the business with opportunity to expand their yearround town supply operation, but it meant a whole set of new challenges on the vastly different soil type. “Basically there are more stones than soil here, and your irrigation system is critical -- you have less than 10 days before you start to dry out if you are not irrigating properly.” On purchase the property had been a sheep farm, using a mainline gun for irrigation. The Sparks started out with five guns, but found they just could not compete with the howling nor’westers that regularly buffet the region. “We would find one side would be completely missed for water, and you would get these big strips of brown. Over a 14-day rotation some bits would be missed altogether.” On soils with minimal withholding capacity the situation was intolerable and two years ago a centre pivot was installed. Now irrigation takes place every four to five days in summer and production has been dramatically boosted. Milksolids have gone from 185,000kg two years ago to 265,000kg this season from the 195 effective
4732
MULTIMIN®+ Se + Cu – Cattle could be the key to unlocking their full potential. MULTIMIN+Se+Cu-Cattle’s unique patented process provides Copper, Manganese, Selenium and Zinc as an easy to administer, under the skin injection for essential mineral supplementation during peak stress periods, pre-calving, breeding and drying off. USA and South African trials* prove the strategic use of MULTIMIN over and above oral trace element supplementation during peak stress periods benefits reproduction and returns cows to milk earlier. Maintaining optimal trace element levels during peak stress periods can also help reduce the incidence of * Retained placentas * Reproductive tract infections * Mastitis * Hoof problems (lameness) MULTIMIN+Se+Cu-Cattle contains active ingredients Zinc 40mg/mL (as disodium zinc EDTA) Manganese 10mg/mL (as disodium manganese EDTA) Copper 15mg/mL (as copper disodium EDTA) Selenium 5mg/mL (as sodium selenite).
Trial results show peak optimisation will occur 25 – 30 days after injection. We recommend injecting 28 days prior to calving, mating and drying off.
Consult your Vet for how MULTIMIN® can benefit your herd. For more information call Virbac on 0800 847 222 Your partner in Animal Health www.virbac.co.nz *Data on file
Prescription Animal Remedy (P.A.R) Class 1. For use only under the authority or prescription of a Veterinarian. Registered pursuant to the ACVM Act 1997, No A9374. See www.nzsfa.govt.nz/acvm/ for registration conditions
28
MANAGEMENT
Dairying Today
‘Maize silage integral’ Adam Fricker FARMERS and contractors have been told at a series of gatherings around the country that maize silage is inextricably linked to the dairy industry. The “Industry Get Togethers” were organised by Pioneer, so you may think “they would say that”, but they make a strong argument. Speakers said demand for dairy products is accelerating at more than 2% per annum -- driven largely by burgeoning wealth in countries like China -- and global dairy production is slowing down. Fonterra’s aim is to be the world’s dominant commodity food ingredient supplier, the success of which depends on milk volume.
To achieve this, its suppliers need to remain the lowest cost suppliers, which in turn requires them to increase performance by 3% annually. To this end, the average input per farm (much of it maize silage) has increased 7.5%, but has delivered better than a 13% output gain. Maize silage is integral to Fonterra’s master plan in another way, said Pioneer. The cooperative also wants to be the leading price and inventory manager, so wants predictable production, hence its efforts to flatten the national milk curve. Pioneer’s message was that maize silage helps the industry manage both goals. The seed company’s overriding message was
that maize silage can and should be used strategically to allow more grass to be harvested. It highlighted an issue facing New Zealand dairy farmers: “We have low variable costs of production but high fixed costs driven by land prices.” The example used was a 185ha, 600-cow farm aiming to produce 400,000kg/MS/ha. The options are invest in a $200,000 feedpad, plus machinery and another 300 cows, and feed them at 2.5 tonne of supplement per cow. Or, buy 185ha at $5.5m plus an extra 580 cows. The former option holds lower risk and emphasises the benefit of shifting emphasis from fixed costs to variable costs.
August, 2005
Lessons from Holland about some of the assumptions. Any model will have flaws that have to be corrected over time by by a much simpler approach where a decent research input. Hence the only the actual inputs of manure and deficiencies in this model have to artificial fertiliser applied will be be carefully explained to farmers or considered. confusion and suspicion will arise. This will mean far easier control Third, compulsory standards or by the authorities and farmers will caps will finally have to be set in have less opportunity to play the many areas for nitrogen and fertiliser system. Even with the compulsory use. MINAS management plans, farmers With the spectacular inhave been fiddling the figcrease in the use of nitrogenous ures, put on more than what was allowed and transferred “If no action is taken problems on a fertilisers, the large increases in numbers of dairy cows over manure between farms. European scale will develop.” a number of years, the call for This may well be a maan increase of 4% in producjor reason to go to a simpler tion, there will finally have to and more effective system to seems to be well overdue. The promreach targets for nutrients in ground ise of the use of N inhibitors with be mandatory standards for nitrogen water, lakes and rivers. conflicting views about their efficacy (and phosphorus) use. These standards may well have to To live and survive with MINAS is another area that deserves more atbe on a national basis, rather than any and the proposed new system and tention. to maintain a fine balance between Regrettably the number of soil sci- disjointed regional standards. If no action is taken at an early standards, levies you may have to entists to study these problems is pitipay. ful after many years of redundancies point, problems on a European scale Optimising agricultural practices and retirements. At Ruakura there is will develop and a serious clean-up is a sensitive and difficult task for only one soil scientist left; luckily he will be required with even stricter rules and regulations. farmers. It goes without saying that is a respected nitrogen scientist. Environment Waikato wants to a number them feel all the rules and Second, the use of models like regulations from milk quota to min- Overseer is essential. However, there regulate nitrogen use around Lake eral bookkeeping are forms of repres- will be problems with the use of a Taupo. While their focus is now on sion and over the years many illegal model like Overseer for the farms Lake Taupo as a national icon, let us practices have occurred. around Lake Taupo because riparian not forget that the majority of lakes in But it all has the aim of maintain- zones and tree belts are not consid- the Waikato and many other areas are far more polluted. ing the “natural” environment in Hol- ered in the model. We all have a stake in keeping New land with its high population density. As the Dutch research shows, usOf course all countries in the EU are ing a computer model that can affect Zealand clean and green. Although forced into similar restraints. decisions on the use of fertilisers and farmers want a voluntary system to As a result of the controls, rules and effluent on any farm, is fraught with continue, the Dutch experience shows regulations, nitrate levels in ground difficulties because of uncertainty that regulation is finally required. From page 26
water have decreased considerably. However, whether the EU’s formulated targets of the nitrate standard of 50mg per litre in the upper layer can be reached by 2009 is a moot point. What can we learn from the European regulatory environment and the Dutch experience? First, a greatly increased research effort on the flow of nutrients and the environmental effects of fertiliser use
Apprentice funding THE Labour Party will create 5000 modern apprenticeship places as part of its election pledge. Prime Minister Helen Clark says industry training and modern apprenticeships have “a vital role to play in ensuring that New Zealand has the skill base it needs to support a growing economy”. “The strong economic growth New Zealand has had during Labour’s first two terms in office has created a big demand for skills. “Labour has been steadily increasing its investment in skills training over its past six budgets. “We are also doubling the Government’s investment in the Industry Training Fund -- up from $56.1 million in 1999 to $128.9m for 2006.” Clark says Labour has placed a huge priority on training during its time in office. “We are committed to further increasing our targets for industry training.” “Employers need an increasingly well-trained workforce to deal with the ever-changing environment in which they operate, and to compete successfully in the global marketplace.”
MANAGEMENT
August, 2005
Taking control of the risks THE recent Feed Pad seminars we held in conjunction with Dexcel were a great opportunity to visit a range of systems and to pick up ideas and thoughts from the more than 1000 farmers who attended the 10 North Island meetings. It became clear after the first few meetings that much of the questioning and discussion ultimately centred on managing risk in one form or another, be it financial, environmental or climatic. Financial The business environment dairy farmers are operating in has changed significantly over the last 10 years. Increasing land and other capital cost has seen term liabilities (debt) increase from $5.44 /kg MS in the 93/94 season to $10.75/kgMS in the 2003/04 season. While liabilities have increased 97% /kgMS in the last 10 years the actual cost
of the weather. Last season was tough all round with many difficult periods of poor pasture growth and low utilisation. Having a supply of feed that is grown in one season to be fed in another does spread risk. Modern farms do have less margin for error now than 20 years ago. Modern cow genetics provide greater production potential but these animals are more sensitive to mismanagement of feed supply. Avoiding pasture damage through winter is crucial to maintain cow condition allowing cows to be fed adequately post calving. Feed pads and supplements were certainly viewed as a tool that had a role in managing climatic risk. Environmental Feedpads have a role in preserving soil structure and managing nutrients. Nutri-
The investment in a feed pad is seen as less risky than buying extra land.
of servicing that debt as a percentage of gross farm revenue has been masked to some extent by high payouts and low interest rates as shown in Figure 1. For some farmers looking to grow their present business, the business risks represented in the graph are too big to justify and they are looking at other options. Off farm investment is certainly one alternative but a growing number are taking the option of intensifying their present operation. A total of $200,000 invested in a feed pad, feed-out machinery and an upgraded effluent system allowing a farm to milk an extra 200 cows is seen as a less risky proposal than spending $1,200,000 on an extra 60 hectares to milk another 200 cows in an all grass system. The success of intensification relies on managing variable costs to ensure they remain lower than the fixed interest costs associated with buying more land. As interest costs increase this is easier to do. At least with variable costs you do have some control over them, interest rates are out of your hands. A comment that came up repeatedly at the seminars was a fear of being “locked into a system� if you invest in a feed pad. I would suggest you have greater flexibility on a more intensive system. If there was a long term shift in the fortunes of Fonterra it is much easier to free up capital on a intensive system by selling cows and shares than having to sell all or part of a farm. Climatic risk Climatic risk was raised by a number farmers. Farms with feed reserves and the ability to feed them when required are seen to be more immune to the vagaries
ent budgets will become a fact of life in the not too distant future and ultimately will save most farmers money. Using a feed pad will allow farmers to capture a higher proportion of the daily effluent produced so it can subsequently be land applied in a controlled fashion. If our nutrient application legislation tightens farmers who are minimising the environmental impact of animal manure nutrients are likely to have greater options when it comes to applying bagged fertiliser, particularly nitrogen. What are the risks to your business in the short and medium term? Only you know what you are comfortable with. Look at all the options available to reduce your risk to a level that you are comfortable with. Time for planning Planting of maize silage crops is not far away now. Whether you grow your own maize silage or purchase from a contract grower, now is the time to start thinking about your requirements. The hybrid planted and the time of harvest will both impact on dairy farm profitability. Did you have enough maize silage last year to achieve your profit and cow condition targets, did the initial maize arrive early enough or could you have delayed harvest and ordered a longer maturing hybrid? Remember that contract growers can be more accommodating of your delivery time and quality requirements if they have a firm commitment in advance of planting.
• David Millar is a forage specialist for Pioneer. Feedback welcomed to dmiller@genetic.co.nz
Figure 1: Change in term liabilities and interest cost as a % of gross farm income
Dairying Today
29
30
August, 2005
Dairying Today
Energy Efficiency Energy conservation coming into focus Adam Fricker POWER costs on a dairy farm average less than 5% of overall costs, or about 8% on irrigated farms. Quite frankly, when it comes to the issue of shaving a bit off the power bill, busy farmers have higher priorities. It’s a hard issue to “get traction on” says Andrew
Barber, a consultant from Agrilink specialising in energy issues. Only recently have efforts begun to get energy conservation into people’s consciousness. But Barber has a way of putting energy conservation into perspective. With our major markets -- particularly EU markets -- becoming increasingly interested in where their
food came from and how it was produced, “everyone involved in NZ Inc. must be on a path to continual improvement across the board”, says Barber. The fact is that power costs are going to keep rising, and that eventually all industries will be hit with a carbon tax, which will add cost at every stage of the supply chain.
Seek shed savings Heather Chalmers A new two-year Southland project will look at energy use in the dairy shed and whether farmers can benefit from new technologies. Venture Southland enterprise project manager Robin McNeill said that while farm energy use has been investigated by other organisations, this was the first comprehensive project of its type in Southland. The project will investigate all aspects of dairy sheds such as water use, milk quality, energy use and efficiency, effluent disposal, and the role of new technology. It was an opportunity to independently assess different manufacturers’ products and gauge what best suited particular dairy farms under different management, such as once or twice-a-day milking. About 10 Southland dairy farms will be involved in the project, with comprehensive monitoring of energy use. Results from each will be posted on the internet so the information is readily available to other farmers. “We want all the data real-time on
the internet.” There will also be field days and a formal report. Canterbury University’s centre for advanced engineering will independently monitor and assess the results. McNeill, an electrical engineer with 15 years’ interest in renewable energy will also take an active involvement as well as Lumsden part-time dairy farmer Wayne Duncan, who also works at Venture Southland. “I’m confident that some styles of dairy farming will suit different technologies better than others. We want the whole thing truly transparent so that at the end of the day the farmer can decide what is the best option for them.” Some technologies may not be economic at an electricity rate of 7c, but may be next year or in five years as electricity prices rise. As well as reducing costs, the project would also look at how to get improved returns for milk such as rewards for milk quality. Funding for the project has come from Dairy InSight and the Sustainable Farming Fund.
The hotly debated Kyoto Protocol has increased interest in energy conservation because, while it doesn’t sound like much, the cumulative cost to an industry chasing incremental productivity gains wherever it can find them is not inconsequential. Diesel has already gone up 6c/litre -- that’s the carbon tax. This will hit farmers in the pocket through their own fuel consumption plus the extra cost their dairy company incurs running a tanker fleet. The average farm used 160kW hours (the unit on your power bill) in the shed, which, at 13c per kWh, adds up to $6m per annum across the industry. Irrigation costs are on top of this. Then add the extra costs imposed by the carbon tax at the factory. Barber estimates that each farm will pay an extra $500 annually plus shed costs, if the carbon tax stays at $15 per tonne which, given the recent Kyoto accounting cockup, now looks low. It is capped at $25 per tonne, but will be determined by the world carbon credit market. And don’t expect a better deal if you live in the South Island where low emission hydropower is king -- the electricity market charges according to the marginal price, i.e. the highest price, which will invariably be a coal-burning power station. “Forget the carbon tax, though,” he says. “The cost of energy is still going up regardless of Kyoto. Awareness needs to be
Andrew Barber, Agrilink
raised across the industry. “Dairy farmers can make gains easily with simple changes like insulating hot water cylinders, variable speed pumps, rethinking their hot washes. “They live in their businesses, so I tell them that if they start by applying a new mindset in the home, that energy-wise thinking will spill out onto the farm.” The dairy shed is the obvious place to make changes, and Barber has worked with Deosan and a group of farmers to trial and prove a new low-dose
acid detergent and new protocol wfor plant washing. The Supernova product is approved for a 1ml rate for cold washes, and requires fewer hot washes. Barber measured energy use on the farms before and after the Supernova detergent and wash system was adopted. The results showed reductions in the real cost of detergent of up to 50%, and reductions in plant washing electricity costs of up to 20% were possible. Barber worked with Deosan to create a model
on which the Deosan calculator is based (www. deosan.co.nz/supernova) - a tool that allows farmers to work out their real plant wash costs using different detergents. “The outcomes of the Deosan trial are interesting,” says Barber. “It’s easy to understand; you use less hot water, you save money. I made the computer model then compared it to actuals. It’s based on simple physics -- it takes a set amount of energy to heat a certain volume of water, so it’s a robust model.”
generating
POWER solutions
SOUNDPROOFED CUMMINS GENERATOR SETS New and remanufactured 6B series available from
+gst
$19775
ENQUIRE TODAY!
PTO
GENERATORS EXCELLENT PRICES
ENQUIRE TODAY!
Ask about our finance and long term hire options Full range available: CAT, Cummins, Deutz, Perkins, MAN, Volvo, John Deere, Iveco, MTU, Scania. New & remanufactured generators available: 0.7 to 2,000 Kva. Prices subject to change, to be confirmed with quote.
0800 679 800
call us today on formerly AB Power Systems
for more information
POWERGen Ltd WORKER ROAD, WELLSFORD TEL: +64 9 423 7667 for great deals - great service
TMBTI
ZPVS EBJMZ TIFE QPXFS DPTUT XJUI s 2EDUCE THE REAL COST OF YOUR CURRENT DETERGENTS BY UP TO s 2EDUCE YOUR PLANT WASHING ELECTRICITY COSTS BY UP TO
& 7 * 4 6 $ 9 & 0%6$5 13 ''&3 Y 0 IME /NL 4 ,IM3EIET EWEDBSITE FOR DPEPTLYA ILS IONS A
#ONDIT
#ALCULATE 9OUR 0OWER #OST 3AVINGS AT
XXX EFPTBO DP O[ TVQFSOPWB
$"-- %&04"/ 888 %&04"/ $0 /;
32
ENERGY
Dairying Today
Online energy calculator GENESIS Energy is helping dairy farmers identify cost-savings with the launch of its online Genesis Energy Dairy Efficiency Calculator. The Calculator, which can be found at www. genesisenergy.co.nz/dairysavings, is designed to assist farmers in identifying areas in their operation where costs can be reduced by being energy efficient. Genesis Energy retail general manager Vince Hawksworth says Genesis conducted a series of dairy farm energy audits to identify where the main areas of energy use were and looked at technologies available to reduce farm energy consumption. “Our audits show that a 25% reduction in dairy shed energy consumption can be achieved by installing energy efficient technology such as heat recovery systems on refrigeration, variable speed drives on vacuum pumps, insulation around milk vats and more efficient lighting systems. “If farm conditions are right, as much as a 38% reduction in total dairy shed energy consumption can be realised,” says Hawksworth. The calculator works by asking farmers to input their energy rates, consumption pattern and other dairy shed information into the online program, which then determines energy usage, identifies savings options and estimates the financial payback of installing selected energy efficient products. The website has information and links to a range of energy efficient products that can be used for making investment decisions based on the savings estimated by the calculator.
August, 2005
Bank takes lead on education WESTPAC has released an education programme for dairy farmers affected by the Government’s climate change policy. The project was established to “increase knowledge of energy efficiency and greenhouse gas emissions in the primary production sectors”. Part of that programme focuses on dairy farming. “New Zealand is in a unique situation in that over half of our greenhouse gas emissions are non-carbon dioxide emissions from agriculture. “Plus, we are about 12% above our 1990 levels, which has direct implications for our customers”, says Karen Silk, Westpac’s head of
agribusiness. “Westpac accepted New Zealand’s ratification of Kyoto as an opportunity to assist dairy farmers to prepare their businesses and look forward positively. “As a result, our senior agri-managers have been trained to fully understand the requirements, implications and effects of climate change and then pass this specialist advice to our dairy customers along with an information toolkit,” says Silk. Energy efficiency on farms will reduce farmers’ costs and greenhouse gas emissions. Westpac says its information tool-kits will: identify immediate cost effective solutions to rising energy costs; identify ways for dairy
Westpac aims to educate its managers and farmers about climate change policy, as part of its corporate responsibility effort.
farms to reduce energy consumption; increase
awareness of incentives and opportunities to
reduce greenhouse gas emissions.
Up to 50% savings on pump costs FARMERS can save up to 50% of the power normally needed to run a
wash-down pump with a variable-speed unit sold by Grundfos. Charlie Kay, Kay Water Services, Te Awamutu, has overseen six installations of the pump, which uses proven technology. “It has been developed from the same type used to supply water to highrise buildings, offering variable flow to save energy and reflect peak demands.”
Using this technology in a horizontal suction pump for farm dairies saves energy in a situation where 90% of the time only one hose is in use. An electronic controller runs the pump only to the pressure required. Once a second hose is activated the pump will speed up to meet the increased demand, but not before. Grundfoss says Kay
ran a 27-day test on a conventional wash-down pump, with a check meter monitoring power use. He then put the same meter in the variable wash-down pump. “Savings amounted to 50% in electricity. I know of one farmer who reckons he has saved $900 in the first year.” Despite costing $5300 versus $2300 for a conventional pump the Grundfos does not
require “soft start” relay equipment, Kay says. “And on a normal 10hp pump you could expect to pay around $2000 for this [soft start] gear.” He says for the duration of most milkings farmers only need a pump drawing about 2kw to do the job, yet with a conventional pump, draw-off is set higher – anywhere from 7kw. Tel. 09 415 3240
ENERGY
August, 2005
Dairying Today
33
Kyoto will further hamper New Zealand’s competitiveness Malcolm Souness Rural Energy WITH land access issues set aside (for the time being), dairy farmers and sharemilkers will be paying careful attention to other election year issues, with a particular focus on high-voltage transmission lines, water rights, and the upcoming carbon charge. While seasoned politicians steer clear of electricity transmission, National has made a point with regard to cancelling the upcoming Kyoto carbon charge (scheduled for introduction in April 2007). Labour on the
carbon credits allocated by the New Zealand Government to Meridian’s Te Apiti wind farm in the Manawatu Gorge. These were sold at NZ$10.50 per tonne of CO2 displaced during the 2008-2012 period, and contribute to Denmark’s commitment to the Kyoto Protocol. The key driver behind uncertainty in greenhouse gas inventory is that most greenhouse gases are produced and absorbed by biological systems, which inherently present significant variance, from variable tree growth (carbon absorption) in geographically different regions, through to genetic
Greenhouse gas
Farm dairy relevance
Global warming potential
Carbon dioxide (CO2)
Electricity and fuel combustion
1
Methane (CH4)
Ruminant animals by-product
23
Nitrous oxide (N2O)
Fertilizer/urea by-product
296
HFCs (HFC134a)
Refrigeration equipment
1300
Table 1: Key greenhouse gases and their CO2 equivalent global warming potential.
other hand appears set to maintain a “Kyoto as usual� approach, having signed the Kyoto Protocol climate change treaty in 2002. Just what does this have to do with dairying? A fair bit given that the carbon charge will directly increase the price of electricity, diesel, petrol, coal and gas, and the cost of anything dependent on energy. The Kyoto Protocol is a United Nations-led initiative with the objective of reducing the effect of global warming and climate change, which is considered to be a result of greenhouse gas emissions. Developed nations that have signed the treaty are committed to reducing their greenhouse gas emissions to an agreed margin of 1990 level for the first Kyoto commitment period (2008-2012). If the 1990 level cannot be matched, carbon abatement credits may be bought from international projects that are Kyoto compliant. An example of this is the Danish Government’s recent purchase of
and feed variance in ruminant (methane producing) livestock. Recent media coverage of New Zealand’s greenhouse gas inventory suggests that some of the land-use changes that initially counted toward carbon sinks (for Kyoto) have been sampled and were actually not as beneficial as originally expected. It is expected that more sampling of physical plots will place greater certainty on the benefit of forest sinks to Kyoto, with more research and analysis expected to enhance the understanding of greenhouse gas inventory and carbon sink benefits. Recently, the US and Australia announced the formation of the “Asia Pacific Partnership on Clean Development and Climate�, in association with China, India and South Korea. The only publicly available information is that it consists of countries that have not ratified the Kyoto Protocol, with the exception of Japan which has commitments during the first Kyoto
commitment period. These countries account for approximately half of global greenhouse emissions and energy consumption, and it will be interesting to see just what eventuates from this agreement. Greenhouse gases make up part of the earth’s atmosphere where they are used to trap energy from the sun to maintain a warm environment on earth. Throughout the last half of the 20th century, the strength of greenhouse gasses in the atmosphere has risen dramatically, resulting in increased retention of energy from the sun. This is considered a key driver of climate change, which has potential to affect everyone in one way or another. The most common greenhouse gas is water; however, water vapour in the atmosphere is not considered subject to influence and is ignored in greenhouse gas inventories. There are several aspects where dairy farmers fit in with regard to Kyoto. Farm dairies are energy-intensive operations. The cost of production will be adversely affected by a carbon charge on electricity. The primary sector accounts for roughly half New Zealand’s net CO2 equivalent emissions from ruminant stock (methane). Application of nitrogen rich urea to land releases nitrous oxide (N20). Refrigeration of milk requires use of HFCs, some of which is released to atmosphere over the lifecycle of refrigeration plant. While the Government has suggested a price bracket of NZ$15 to NZ$25/tonne for CO2 emissions, this could be considered conservative given the recent European prices for carbon credits reaching almost 30 Euros per tonne of CO2. Most New Zealanders wouldn’t know a tonne of CO2 from a tonne of bricks, but what this does mean is that for every tonne of CO2 that is released into the atmosphere, the emitting business will be charged at the market rate for CO2 emissions ($15 to $25 per tonne of CO2). If an organisation abates carbon emissions the,
A carbon tax will directly increase the price of electricity, diesel, petrol, coal and gas – anything dependent on energy. The cumulative cost to dairying will be significant.
'ET MORE OF WHAT MATTERS FROM YOUR FARM
To page 34
Concepts Rural farm management suite Planning, analysis, modelling, mapping & QA software for progressive farmers The Concepts Rural software suite is breaking new ground. From the developers of the highly successful CA$Hmanager Rural program, for complete management of farm finances, comes a powerful new planning and management tool available in four versions. Concepts Livestock helps plan for high performance and maintains accurate records about your animals and paddocks — stock tallies, liveweight monitoring, feed budgeting, job sheets, mapping, planning etc. Concepts Cropping — the perfect tool for all cropping activities. Develop crop plans, keep accurate crop records & QA, analyse harvests, mapping & planning, chemical records, produce worker job sheets etc. Concepts Dairy is for production driven dairy farmers, with daily diary, herd records, feed budgeting and feed records, mapping & planning, worker job sheets, weather records, asset & maintenance records. Concepts Horticulture — plan all aspects of crop management, record activities, keep track of pests & diseases, manage chemical inventories, provide job sheets to workers, monitor crops, etc. All four programs incorporate GPS mapping, quick and easy data entry, twin screen views for instant analysis, extensive reporting options, help system, etc.
3AVE UP TO OF ENERGY USAGE AND IMPROVE YOUR BOTTOM LINE )NCREASED ENERGY EF½ CIENCY ON YOUR FARM WILL REDUCE COSTS 7ITH THE FREE %NERGY %F½ CIENT 7AYS BOOK FROM -ERCURY %NERGY YOU´LL DISCOVER TEN SIMPLE WAYS TO REDUCE YOUR FARM´S POWER USAGE BY UP TO 6ISIT WWW MERCURY CO NZ FARMING OR CALL FOR YOUR COPY )T´S FREE EVEN IF YOU´RE NOT A -ERCURY %NERGY CUSTOMER
FREEPHONE 0800 888 707 for an information pack and learn how to plan for better farm management Concepts Rural Solutions Ltd PO Box 692, Masterton. Ph 06 370 0280 Fax 06 370 0285 Email sales@computerconcepts.co.nz
0AGE %NERGY %F½ CIENT 7AYS OF IMPROVING THE ECONOMIC BOTTOM LINE OF YOUR DAIRY FARM 0RODUCED BY #2, %NERGY ,TD ON BEHALF OF THE %NERGY &EDERATION OF .EW :EALAND )NC %&.:
-%2
(formerly Computer Concepts & Systems)
34
ENERGY
Dairying Today
Cheap cooling GLYCOL chiller systems are among the few means available to dairy farmers for quickly cooling milk before it enters the vat, to ensure proper quality is retained, says Shannon Refrigeration Services, of Auckland. Its Quattro on-demand milk chilling unit “pre-cools” milk before it enters the cooling tank, reducing the load on the milk vat system and the agitation time required. The company says it tested the original Quattro, a 3hp refrigeration unit and glycol chiller on a 200-cow farm dairy at Ngatea. Returns were beginning to show within four months — the desired results in milk quality and electricity savings.
Systems are available to suit four herd sizes: • 180-200 cows: a 3.5hp Quattro refrigeration unit and glycol chiller with a polyethylene plastic inner and stainless steel outer with controls, glycol fluid and an information package, supplied plastic wrapped on a pallet base. • 250-260 cows: as above but with a 6hp refrigeration unit and glycol chiller. • 350 cows: as above but with a 10hp unit; • 500-2000 cows: typically a water chilling system connected to a 40,000 to 50,000 litre storage tank, with a 1525hp Quattro unit. Tel. 09 278 3300
August, 2005
Peak-power server with backup CONTROLLER for electricity generators starts and stops the unit so it runs only at times of peak AC power demand. The device is called GEMset. Alphatronic Pacific Ltd, Auckland, spokesman Jeroen Brand says the result is shorter generator running time, with fuel savings, longer generator life and less maintenance. Moreover, there are long periods of “silent” AC power consumption, because while the generator is running, any power not needed for AC loads goes into battery storage. For further fuel savings, solar modules can be fitted to the GEMset. Says Brand, “Adding an inverter/charger to an AC generator system can have huge benefits such as silent supply, fuel savings, less maintenance and extended generator life.” Calculations based on a 7.5kW AC generator system with a GEMset showed potential savings of NZ$24,750 on fuel and oil over a five-year period.
Taking into account lower maintenance and longer generator life, the savings would be greater, Brand says. To get these benefits, certain features are needed, all delivered by the GEMset, the company says – automatic AC input power control, synchronised AC transfer, unity power factor, power requirement prediction and modularity for scaling. The device packages the necessary hardware and software in a pre-wired and pre-tested unit. Tel. 09 414 5520
We don’t just talk about sustainable dairy farming, we practise it.
Vital Charge
MER 9068
Our energy saving innovations aren't dreamed up in the boardroom. They are learnt through extensive research and testing on our own dairy farms in North Otago. And they're worth a look. Dairy farms use seven times the amount of energy of a residential home in the dairy shed alone. Reducing energy usage can bring huge benefits and improve productivity. Our research into issues like stray voltage, vacuum pumping and hot water heating could save you hundreds of dollars a year and result in healthier animals and improved milk quality. To find out more, and to join an energy company that sees what you see, contact our Business Services Team on 0800 496 777, between 7.30am and 7.30pm, Monday to Friday, excluding public holidays or visit www.meridianenergy.co.nz
www.meridianenergy.co.nz
RECHARGE Battery Revitalizer is heading into Australia. Maker Gerald Anselmi in April took the product to the Gippsland Fieldays, Warragul, 100km east of Melbourne. Says Anselmi: “We wanted to see if they had the same problems there as here, and they do, with batteries lasting two or three years when they should be getting double that. “More people are using Recharge in regular maintenance and dosing their batteries every two years.” Recharge comes in a 100ml bottle, for one truck or three-four car batteries. The more economical 450ml and 2-Litre bottles are also available. Buy Recharge from CRT Farmcentres, Farmlands and Auto–1 stores. www.recharge.net.nz Tel. 09 239 1629
ENERGY
August, 2005
Dairying Today
35
Wireless control at our fingertips TIME and accuracy are critical components of a successful operation. The EDAC SMS 300 Controller gives you a rugged wireless solution to help with your real-time monitoring and control needs. Ideally suited to the farming industry, the EDAC SMS 300 is a communications device that allows wireless remote alarm monitoring and control via GSM (Vodafone) or CDMA (Telecom) networks. Its applications are almost limitless. The EDAC SMS 300 can be applied to many different situations. Temperature, humidity, tank levels, flow and pressure are just a few of the real-world situations that can be monitored. For example, when certain situations are temperature critical, monitoring and
control is a perfect solution to ensure your operations run smoothly. The status of devices such as irrigation pumps, process machinery and thermostats can also be monitored. Equipment such as pumps, heaters and lights can also be controlled remotely. EDAC SMS 300 provide a cost-effective solution for remote monitoring, controlling and interrogating applications. It communicates using SMS (text) messaging via cellular phone networks. If uncertain of the state of a device or sensor, it provides the facility to interrogate system status from a remote location via SMS messaging from anywhere in the world. SMS is used in applications in just about every industry, where traditional
fixed line telephone services are unavailable or not
feasible. The agriculture/ farming industry has real-
SEE US AT WHITE INTERNATIONAL STAND NATIONAL FIELDAYS SITE C74 • TERMS AVAILABLE •
ing and control in a rural setting, especially where traditional phone line services are impractical or expensive to install and
maintain. It eliminates the expense of third parties and enables contact to be made directly with those who need to be informed.
NT24 Pulsator
Cheap chill from tower WATER can be chilled cheaper in farm dairies with a tandem arrangement of cooling tower and refrigerator-type chiller, or an ice bank, says Machinetech Ltd, Auckland. The company supplies industrial cooling towers. The cooling tower will achieve the greatest temperature drop, then the chiller, or ice bank, can be used to bring the water down the last few degrees. The chiller may be smaller than if it were a standalone. An average tower from Machinetech (style MS-25) with a 0.55kW (3/4hp) fan motor will cost about 11 cents per hour, compared with about $1.40 per hour for a chiller, the company says. More savings are claimed possible using a thermostat control or a variable drive. The right-sized tower will deliver water at least 5 degrees below ambient air temperature. The most efficient use of the cooling tower is recirculating the water from the storage tank, or new incoming water, at night while the air is coolest. In winter, tank water temperature, after using the tower, may be only a few degrees, say, 4 degrees C. Maintenance costs are said to be lower than for a chiller. Tel. 09 633 0071
ised the cost-effective solution that can be provided by EDAC products. SMS is an effective platform for essential monitor-
NEW
Split liners or damaged rubberware are no match for an NT24... simply flush out and carry on milking! • Flush the complete pulsation unit by drawing water through the pulse tubing - then carry on milking • A NEW and unique valving system keeps water away from all electrical components •
24 volt DC operation improves electrical durability and complies with accepted international standards NEW
• Still has Waikato’s trademark whisper quiet operation Your future and this quiet achiever go hand in hand
For more information contact your local Waikato Milking Systems™ Dealer Or call 0508 MILKING (0508 645 5464), or visit our website www.waikatomilking.co.nz A 100% New Zealand owned and operated company.
36
August, 2005
Dairying Today
Machinery & Products
Loader joystick ‘saves your arm’ A NEW control on the French-made Manitou loader leaves the operator’s hand free for steering, while his right hand controls the boom and the forward/reverse movements. CB Norwood’s Manitou operations manager, Rob Fuller, describes the JSM
(joystick switch and move) as an “innovative, 100% Manitou solution.” “The design allows better grasp of the lever; the joystick ‘falls’ into your hand.” The design and comfort are confirmed by ergonomic experts, CB Norwood says. “A new wider and more comfortable right-arm console gives restful support, meaning less muscular strain on the wrist. Muscular and skeletal complaints have become the largest category of occupational
diseases, and the best known is the carpal tunnel syndrome affecting a nerve in the wrist.” In 10 years, repetitive strain injuries have multiplied by 13, CB Norwood says. Hence Manitou has adopted ergonomics as a major research and development practice. With a powershift gearbox fitted, the driver changes gear using two controls on the JSM. The power shuttle gear change is by a conventional lever. Tel. 06 356 4920
More traction on slopes for ATV FITTING Clic dual wheels to his Polaris Magnum 500 ATV has brought an “unreal” result, changing the whole bike, says Kaimai Ranges farmer Colin Patterson. At 380m elevation on the Kaimai Ranges, overlooking Tauranga, winters are mean, cold and wet. Patterson chose a heavy ATV with Clic dual wheels fitted to the rear, for more traction through mud and on wet slopes. Towing a quad trailer, with a 600kg load, he feeds out about 150 big square silage bales a year
MUFFLERS Inexpensive replacement mufflers and accessories
to his deer and goats. In a hard year this can last for seven months. With an average of 2600mm rainfall (12-year average), the wettest months, August and September, are yet to come. Patterson daily travels 30km to his day job. He used to go along the road to the top of the farm and work downhill. Now he’s halved the time needed. With dual wheels he works the farm, uphill, downhill, and can now use tracks too slippery before. And
with more stability he can now go off the tracks. His neighbour borrows the machine while its owner is at work. Towing a round bale feeder, the neighbour too, appreciates the extra traction. The maker says duals make for better riding on rough ground, spreading out the bumps and hollows. Tyre pressure makes a difference; too much pressure in the duals and it’s pretty bouncy. Tel. 07 347 2292
Frontage to turn heads Overnight delivery Dealers nationwide All makes and models available
ATVs, Quads, Farm Bikes
Diggers, Tractors, Loaders & Bulldozers Contact MLB Manufacturers now for your closest dealer Ph 06-754 7460 • info@mlbnz.co.nz • www.mlbnz.co.nz
A NEW form of easily erected fencing especially suitable for lifestyle blocks was unveiled by Goldpine at National Fieldays. Lifestyle Post & Rail products are sold in kitset form for one, two or three rail building. They come complete with 1.2m or 1.8m sleeper posts with domed tops. Quarter-round posts to fit between the sleepers and brackets which are screwed to the sleepers and the rail posts are also attached by screws to the same bracket. The brackets are powder coated. Prices: $26/m single rail, $29/m double rail; $39/m three rails. All prices + GST Tel. 0800 465 3826
• Don’t stress out over irrigation and effluent disposal problems – talk to us at HI-TECH. • We offer total solutions – no compromise! • From full parts & service to a design and installation to suit your requirements. • Discuss your current parts or upgrade needs, or your planned system NOW!
MUFFLERS
IRRIGATION SERVICES LTD
Phone/Fax 07-889 7755 Mobile: 025 924 046 1 Anderson Street, Morrinsville www.hitechirrigation.co.nz
Effluent hydrants Features
Electric Sump Pump Features
Legend
• The original hydrant and still the best • Minimal pressure loss • Clean easy access • Eliminates pipeline blockages 4297
• High pressure & volume • Unique mascerating action pump head • Long shaft for large tanks • Up to 60,000 litres/hr A typical installation
Tractor Driven Pump: AFIL 27 Features • • • •
“Chopper” system Auto or manual primer Galv. suction cone Capacity up to 180,000 l/hr
WE RECOMMEND AND USE HIGH QUALITY DODA PUMPS
August, 2005
MACHINERY & PRODUCTS
Dairying Today
37
Innovative Building Systems by Formsteel Many options available Kitset Supply and /or Build...NZ Wide
Ph 0800 800 003 for your information pack
DT
Dairy farmers keen on mixer wagon Neil Keating DAIRY, beef and deer farmers have bought 120 Seko feed mixer wagons in the three and a half years since their arrival here, says distributor Agnet Equipment Limited. The machines are working on dairy farms from 90 to 1200 cows. About 80% have gone to dairy farmers and the rest to beef and deer farmers. Most discover the machines minimise feed wastage on pads, in contrast to feedout wagons, the company says. Seko manufactures a large range of mixers including self-propelled, tow-behind and stationary mixer wagons, capable of chopping/mixing dry or wet products, either baled or loose with a patented chopping-mixing system that uses counter-rotating augers.
The Seko mixers chop all types and sizes of bales. “The Seko ideally suits farmers with feedpads and it’s the next step for a lot of farmers who are trying to achieve higher production,” says Seko sales manager Blair Peterken. “You become more of a professional when feeding cows. They don’t pick at their feed and it allows you to feed/mix straw, palm kernel, grass silage and minerals which otherwise can be difficult to mix/feed thoroughly. The cows eat it all.” Seko machines handle 99.6% mix in five to seven minutes, Peterken says. Each can be equipped with its own independent hydraulic system which means there are no hydraulic hoses to plug in to the tractor. The wagon has its own hydraulic tank, with hydraulic power generated via the tractor PTO. Tel. 0800 4 AGNET or 0274 821821
Feeder, mower updates MORE product developments are reported by the inventive maker of Ewings Bale Buggy and Topper Mowers. The first, basic model had electric clutch and belts. From then on each model has been modified and the design much improved, says principal Michael Wright. A side loading model was tried but heavier baleage demanded rearloading forks and dual side feeding. This model carried two bales, had an adjustable tow bar and came with a 5.5hp Honda motor. “A decision to galvanise the frame
has proved popular and further improvements, such as a hydraulic pump up to 2cc and a 6.5hp Honda motor, have helped increase the Bale Buggy’s popularity,” Wright says. The latest model has even more modifications such as 100mm width increases each side to prevent the machine running over newly fed baleage. Covers on the wheels prevent net and baleage getting into the bearings. The motor is now on rubber mountings and has been taken off the hydraulic tank – no vibrations. Ewings’ topper mowers come in
four models 1m, 1.5m and 2m wide. The company also makes a mower it calls Push & Tow. The topper mowers are made up of 6mm steel plate with steel spindles, two belts and a centrifugal clutch, preventing damage if the blades hit an obstacle. Simple height adjustment is easy to operate, the company says. Power comes from Kohler or Honda motors, 13-20hp. Michael Wright says in choosing a mower to tow behind an ATV, motor size is crucial. For mowing at speed, larger motors are best. Tel. 03 329 5482
The Ultimate Upgrade
DBE - Variable Speed Wash Down Pumps Constant operating pressure Reduced running costs
For more information phone 0800 4 PUMPS / 0800 4 78677 or visit www.grundfos.com
38
August, 2005
Dairying Today
Tractors & Accessories ‘Jump in, drive away’ Neil Keating NO tractor is easier to drive than the New Holland Series TVT, says CB Norwood Distributors. The new Series TVT (five models 137-192hp at 2100rpm) has “variable transmission technology in a package the driver feels comfortable about within minutes of entering the
cab”, the company says. It’s called AutoCommand and is “all new”, CB Norwood says. An “easyto-understand” joystick (AutoController) “takes only minutes to master”, operating the cruise control, rear linkage, remote valves and headland turn sequencing. Auto Command is steplessly variable, with
no fixed gear ratios. At 0-50km/h, on paddock or road, it chooses optimum engine speed and gear ratio. Three cruise speeds and three speed ranges are available, and full manual control if preferred. These settings are easy to adjust and understand, allowing new operators to master the transmission quickly, even with little
experience, CB Norwood says. “Never has seamless access to operating speeds from zero to maximum been so straightforward.” And there are no complex operating menus to set up the tractor. Series TVT tractors can be driven entirely on the throttle using the maker’s Active StopStart. The transmission can progressively slow, stop and then hold the tractor, even on a steep incline, without needing to use the brakes. Heavy loads can be hauled in difficult terrain with complete confidence and safety, the maker says. The 50km/h top speed, regardless of wheel and tyre diameters, keeps revs low (1510rpm) at 40km/h, helping save fuel. All Series TVT models come with TerraGlide independent front suspension and front hub brakes.
Power comes from sixcylinder turbocharged and intercooled direct-injection engines with the maker’s power management and engine speed reduction, exhaust-aspirated air filtration and 500-hour service
intervals. A reversible eco-fan with variable-pitch cooling is available on selected models. The engine’s control and the AuTo page 39
Clean paddock drains for higher profit Neil Keating LOW-pressure cleaning of sub-surface field drains ensures good drainage for maximum production on land increasing in value yearly, says Fieldco Agriculture, Dargaville. Wet hollows that don’t drain as fast as they once did are a sign sub-surface drains are not working, the company says. A key feature of low-pressure cleaning is minimal damage to brittle pipes and clay tiles. Working pressure is limited to 35 bar (507 psi). A rigid plastic hose is pushed up to 300m into the drain. Water from the nozzle cleans the drain, removing dirt, roots and other debris. Three models are available: Junior, Delta and Senior. All have a five-chamber piston diaphragm pump, maximum output 115 litres/min. Working rate is 70-80 litres/min at 50 bar. The operator’s tractor needs single-acting hydraulics with a free return line, or a double-acting system. Tel. 09 439 5545
TRACTORS & ACCESSORIES
August, 2005
Dairying Today
Loader suits driver on learning curve HIGHER lifting and more power are available on new Merlo loaders from Power Farming. And the Multi Farmer Classic is aimed at the farmer with seasonal operators, whose driving skills need not be high. This machine is less sophisticated than the 30.6 Multi Farmer, typically bought by professional farmers and contractors operating the machine themselves. The new Turbo Farmer range has 20 models. Lifting capacities in the rigid chassis range are now 3400kg capacity to 7m with the base model (P34.7 ) and 4000kg to 7m with the P40.7 Top, the top of the range.
Models in the rigid chassis design go up to 3700kg with boom extension to 10m. Models in the frame levelling/side shift range also have been upgraded. Merlo’s patented boom side and chassis levelling models are available from 3600kg with 7m lift (P36.7) to 4100kg with 7m lift (P41.7 Top) and 3800kg with 10m boom (P38.10Top). Electronically controlled front axle suspension is available for maximum comfort. This helps reduce spillage of material from the bucket, and cuts driver fatigue and wear on the machine. Long wheelbase has enabled Merlo to travel at 40kph. Now boom suspension, giving balance and axle loading
“virtually equal” front to rear means no “bunny hop”, the maker says. Standard models have Deutz 102hp turbo water-cooled engines; in the Top range are new Deutz Turbo after-cooled engines developing 140hp. Easy radiator access and removal make grass and dust removal simpler. New hydraulic systems in the Top range deliver 150 litres with flow sharing capabilities to allow more than one function at one time. A newly designed cab has more room and better visibility with the removal of the front top roof cross member allowing unimpaired visibility when stacking. Tel. 07 902 2200
‘Jump in, drive away’ From page 38
toCommand transmission are linked in drive and PTO modes automatically for best performance. In drive mode the engine and transmission keep to a selected forward speed at the most economical engine speed. In PTO mode, engine and
PTO constant speeds are the priority. In manual mode the engine and transmission run independently Closed-centre hydraulics and load sensing are standard. Oil flow is 130litres/m and lift capacity 9.9 tonnes. There are five electronically controlled proportional remote valves with four
valves standard equipment. All valves can be linked to the tractor’s headland turn sequencing to automatically operate in conjunction with auto PTO, engine speed reduction and the eco fan. A front PTO/hitch option (four tonnes) is available on some models. Design features include
a narrow, “curvaceous” engine hood and cab pillars helping improve visibility, a large rear window and fully glazed doors, comfort ride cab suspension, pneumatic seat, integrated performance monitor, power adjusted mirrors, passenger seat and a cooler box. Tel. 06 356 4920
BORN & BRED ALL-ROUNDER.
83 – 185hp
MF5400/6400
EVERY ONE A THOROUGHBRED
Technically superior and mechanically brilliant – the versatile MF5400 and MF6400 Series are built to last. There’s no substitute for a practical and productive machine, which is why the MF5400 and MF6400 Series work hard across a number of tasks. From loader work and ploughing to hauling and baling, these flexible tractors combine the latest engine technology with brilliantly
designed and comfortable cabins. It’s an efficient system – less of your time and energy for a greater output on the land. And when it’s backed by Massey Ferguson’s reliable after-sales support and service, you know this all-rounder will be a winner. MF5400/6400 Series. Efficient. Hi-tech. Flexible. Bred to deliver.
is a worldwide brand of AGCO Corporation NORTH ISLAND Kaikohe Whangarei Hamilton Rotorua Taupo Hastings Feilding
Renton Motors (1976) Ltd Bryant Tractors (1983) Limited Waikato Tractors Limited Piako Tractors Limited Taupo Tractor & Machinery TA Dear Ltd TRC Tractors
SOUTH ISLAND 09 09 07 07 07 06 06
401 438 843 345 378 879 323
0315 1319 7237 8560 4533 5654 4117
Blenheim Nelson Christchurch Ashburton Dunedin Gore Invercargill
Tractor Repairs and Spares Ltd Malcolm Machinery Agrifarm Machinery Agrifarm Machinery JJ Limited JJ Limited JJ Limited
www.masseyferguson.co.nz
03 03 03 03 03 03 03
578 543 341 308 489 208 218
2943 9311 6900 3097 8199 9370 7174
39
40
TRACTORS & ACCESSORIES
Dairying Today
August, 2005
Big sprayer suits ute A NEW 1000-litre GoldAcres trailer sprayer tows behind a 4x4 ute with two-tonne towing capacity. Agrifarm, Ashburton, markets the sprayer, called the Trailing Compact. It has spring suspension, 750x16 Toyota Land Cruiser wheels, inertia cable brakes and tail-lights, enabling road-
registration and towing loaded at trailer legal speeds. It also goes well behind compact tractors. GoldAcres says the unit is a price-competitive option for the growing number of farmers who own 4x4 utes and separate properties and who want to use their utes for a variety of tasks. Features on the top-
of-the-range machine include: 1000-litre UV-resistant polyethylene tank (weight not exceeding 2000kg when full); power from a 5.5hp Honda coupled to a Kappa three-cylinder, 75 litre/min. high-pressure diaphragm pump; 10m boom (twin link levelling) with lead-screw height adjustment (other options available) that
Hay and Fodder Solutions From Start To Finish
LOOKING FOR A FULL LINE OF HAY AND FODDER EQUIPMENT? John Deere can help solve your needs. With a wide range of hay and fodder models and features to choose from - mower conditioners, round balers, forage harvesters, telehandlers - you’ll find the solution you need to boost your operation’s productivity, efficiency and profitability.
provides a level ride over undulating ground; boom sizes from 5-12m. For in-cabin operation the Trailing Compact has two-way electric solenoid controls, so the windows can be kept closed during spraying. Hand-gun work can be done with the unit’s 25m hose reel and gun. To lessen the frustration of blocked nozzles, one suction and two pressure filters are fitted. A chemical probe sucks direct from a chemical container, allowing the operator to remain on the ground rather than climbing on the sprayer to tip chemical into the tank. 45-litre flush and 10-litre hand-wash tanks are standard, as is a 25-litre single-sided standard foam marker. Tel. 03 307 9400
Low-cost entry to min-till seeding From page 41
For more information, contact your local John Deere Dealer. North Island Cambridge Foxton Gisborne Hamilton Hikuai Masterton Pukekohe Rotorua Stratford Te Puke Waipukurau Whangarei
www.machinefinder.com www.deere.com.au
Walsh Motors P & T Holdings Universal Engineering Limited Farm Services Hamilton Prescott’s Garages Wairarapa Machinery Farm Services Pukekohe Farm & Garden Equipment Greenline Tractors Bayquip Agricultural Limited Farmex Hawkes Bay Fieldpower Northland Limited
07 827 5184 06 363 0060 06 868 8129 07 847 0425 07 864 7801 06 377 3009 09 238 6895 07 345 5490 06 765 5690 07 573 6040 06 858 8822 09 438 7228
Drummond & Etheridge Agrimech NZ Limited D & E Christchurch Limited Southland Farm Machinery Southland Farm Machinery Southland Farm Machinery Gordon Handy Machinery
03 308 7169 03 579 1111 03 349 4883 03 208 8203 03 215 9132 03 489 0472 03 687 4005
South Island Ashburton Blenheim Christchurch Gore Invercargill Mosgiel Timaru
The Rabe coulter assembly (above) comprises a scalloped disc with a Suffolk coulter. Rubber buffers on the mounting bar allow the assembly to ride over obstacles. Speed measured by radar sensor ensures seeding accuracy and automated shut-off when lifting. The problem of seed overrun at lift-up is prevented. Control options are a Wizard electronic tramlining/monitoring device, or Artemis GPS. The MegaDrill weighs 1380kg and the hopper holds 1000 litres. Tel. 0800 88 55 624
TRACTORS & ACCESSORIES
August, 2005
Dairying Today
41
Low-cost entry to min-till seeding A NEW minimum-till seeder from Tulloch Farm Machines allows relatively low-cost entry to this technology for farmers wanting to sow virtually any type of seed in high trash conditions, the company says. The Rabe MegaDrill 3000 is new this year from its German maker. It features the latest in coulter technology and electronics already used on the more sophisticated
contractor’s tool, the Rabe MegaSeed. British farmers have given it a good reception, says Tulloch principal John Tulloch. “This is a large-scale farmers tool, especially, but may also suit some contractors. It’s a minimum-till seeder, as opposed to a direct drill, with about 50kg pressure down on each coulter. Press wheels behind the coulters firm the seedbed and mean there’s often no need for
additional rolling.” The design suits New Zealand conditions, given its ability to ride through trash without blocking, even at the narrow row spacing, Tulloch says. And it suits all seeds, regardless of size and depth of planting. The 3m wide, mounted machine plants 24 rows at 4.9 inch (125mm) spacing at a top speed of 15km/h. It needs 105hp. To page 40
No panning
McCORMICK CX 95 ROPS with LOADER • 4.4 ltr 1100 SERIES PERKINS ENGINE • POWERSHIFT TRANSMISSION • FOUR WHEEL DRIVE • FLAT OPERATOR PLATFORM • RADIAL TYRES
EUROLOAD AL1000SL • SELF LEVELLING, 2M BUCKET • 3RD SERVICE & EURO HITCH
SAVE OVER $13,000
LIMITED STOCK McCORMICK CX 95 CAB with LOADER • 4.4 ltr 1100 SERIES PERKINS ENGINE • 24X24 POWERSHUTTLE - POWERSHIFT • FOUR WHEEL DRIVE • FLAT PLATFORM - AIR CON • LOW PROFILE RADIAL TYRES
EUROLOAD AL1000SL • SELF LEVELLING, 2M BUCKET • 3RD SERVICE & EURO HITCH
UT NZs ASK ABO E LOADER U BEST VAL
LIMITED STOCK
OR
POWERFARMING FINANCE 7.95%*
LIMITED STOCK OFFER ENDS 31.08.05
CX105 CAB $80,400+
one name covers it all Call your local dealer today: WHANGAREI WELLSFORD PUKEKOHE HAMILTON MORRINSVILLE TE AWAMUTU TAURANGA ROTORUA WHAKATANE GISBORNE
Ag & Earth Actrac The Tractor Centre PowerFarming Hamilton Maber Motors PowerFarming Te Awamutu Capital Tractors & Machinery PowerFarming Rotorua Jacks Machinery PowerFarming Gisborne
09 438 9163 09 423 8558 09 238 7179 07 847 2195 07 889 5059 07 870 2411 07 543 0021 07 348 1506 07 308 7299 06 868 8908
PRODUCT MANAGER Mark Daniel
021 906 723
HAWERA HASTINGS PALMERSTON NTH MASTERTON MOTUEKA CHRISTCHURCH TIMARU MOSGIEL GORE INVERCARGILL
06 278 0240 06 879 9998 06 353 3805 06 370 8240 03 528 9065 03 349 5975 03 688 2233 03 489 3489 03 208 4681 03 214 1480
PowerFarming Taranaki PowerFarming Hawkes Bay PowerFarming Manawatu James Trucks & Machinery Motueka Farm Machinery PowerFarming Canterbury PowerFarming Timaru PowerFarming Otago PowerFarming Southland PowerFarming Southland
* Some conditions & delivery charges may apply.
‘SPADE’ tines on the Imants Revolution rotary cultivator take up larger pieces of soil, retaining organic material nearer the surface and allowing plenty of air and water movement and faster use of nutrients, says the Dutch manufacturer. The New Zealand supplier is Matamata Ag Centre. The machine allows one-pass cultivation, trash incorporation and seed-bed preparation, and all this more efficiently than ploughs or harrows, the maker says. It is said to cause none of the panning that can occur with down-blade harrows. Working speed can be as high as 6km/h, giving a work rate around 1.5ha/h. Power requirement is 130-140hp. Tel. 07 888 6448
42
August, 2005
Dairying Today
Animal Health
Vets target BVD in breeding bulls A PLAN to control bovine viral diarrhoea (BVD) in breeding bulls is the first national move to tackle the disease, reckoned present in 60% of dairy and beef herds. Other herd control measures will follow later. The plan comes from a
committee drawn from the 100 or so people who attended a Wellington BVD symposium in March. Vets in practice and vets from animal remedy companies, herd improvement groups and regulators were present.
CAI-PAN Mint Natural Udder Care Cream CAI-PAN Mint is an all-natural cream which is applied to the udder before, during or after milking. The application is quick and easy. CAI-PAN Mint contains oil derived from Japanese peppermint plants. There is no need to withhold milk from mint-treated cows. CAI-PAN Mint is available for only $39.95 (inc gst) for a 400gm tube.
Chairing the committee is vet John Pickering, Wanganui Veterinary Services, also a farmer, who says “a lot of farmers don’t know their herds have BVD and don’t know how much it’s affecting their production.” “It’s a hidden disease. In particular it affects fertility including lowering conception rate, increased embryo loss, abortion, stretched out calving, higher empty rates, stillbirths and congenital birth defects.” Carrier bulls are the single biggest cause of infertility when they introduce the infection at mating, Pickering says.
“The plan is to encourage all dairy and beef farmers to blood test all bulls before mating. Blood test-positive bulls will be carrier bulls and should be culled. Negative bulls will be ‘clean’, which should then be vaccinated before mating to avoid them contracting a transient infection from infected cows themselves.” Pickering says it is also important for stud breeders to blood test their bulls before sale so they only sell BVD free-certified bulls. Another priority for the committee will be education. Because BVD is a
complicated disease most farmers don’t understand it. The BVD committee intends to use the media, the NZ Veterinary Association and the allied cattle and sheep and beef societies to help explain it. “Down the track we may be looking at complete eradication. They’ve nearly achieved that in Norway, Sweden, Finland and Denmark. “Other countries in Europe including Austria are looking at it. In the long term if we don’t eradicate the disease we may face trade barriers erected by our trading partners.”
John Pickering, Wanganui
Annual loss $70 per cow
To prevent any chance of contamination of milk, Cai-pan Mint should not be used on the teats.
BVD, a cattle disease caused by a virus, is widespread in New Zealand as in most other countries, says Massey University Epicentre researcher Cord Heuer. Recent estimates for infected New Zealand dairy herds put the annual loss at $70/ cow/year – about a $37 million annual loss to dairy farmers. These costs do not include labour or use of pasture for non-productive cows later culled. The virus persists in the population by two means of transmission: directly between animals through physical contact; and viral invasion of one to four-month-old foetuses. The latter mode causes newborn calves either to develop poorly and die, or grow up normally but remain “persistently infected” (PI), continuing to shed virus in large amounts through their lives. Losses in dairy and beef herds are due to the effect of the virus on the reproductive tract of a cow and on the foetus before birth. The virus causes failure to conceive, embryo death three to six weeks after conception, abortion during three to six months pregnancy, ill-thrift and various diseases
of calves (diarrhoea, pneumonia, paralysis, disorientation, blindness). Apart from high death rates in PI calves, cattle infected for short periods (two-three weeks) suffer a mild illness (during which they can infect others) and develop a lifelong immunity, but during this short period they reduce milk production and are prone to other diseases due to suppression of immune functions. Excellent tests exist to identify infected herds and animals using milk or blood samples: 1.Testing for virus antibodies in bulk tank milk (BTM) indicate whether herds were recently exposed to BVD virus (cost around $40 per sample). 2. Another test finds virus antigen in BTM of up to about 100 cows per sample and is useful to identify herds with at least one lactating PI-cow. The test is expected to be available in New Zealand by late 2005. Livestock Improvement Corporation is able to pool milk samples from herd performance monitoring in clusters of 100 cows per pool to facilitate testing for BVD virus. 3. Antibodies and virus antigen can also
be detected in serum from individual animals at cost around $14-20 per animal. Vaccines available in New Zealand can be effective but they neither provide 100% protection against infection nor guarantee the virus does not invade the foetus and produce new PIs. Moreover, vaccination is considered expensive, needing continuing repetition annually to keep the spread of BVD virus in a herd at bay. To control the disease, PI animals firstly need to be identified and removed from infected herds. Once all PIs are removed and no more virus are present, new virus introductions into the herd need to be prevented. To achieve this, replacement animals and breeding bulls must be tested before they get in contact with herd mates. The fewer infected cattle in New Zealand, the lower the risk of reintroduction. BVD control would be easier if all farmers jointly participated in control efforts. No country deciding to eradicate BVD has failed so far. In all instances, control was primarily funded by farmers with little or no inputs from industries or government.
Animal remedy firm fined, NZFSA ‘comfortable’ Available now at
0800 800 801
Call free to find the store nearest you.
THE New Zealand Food Safety Authority (NZFSA) says it is comfortable the sentence handed down in the Auckland District Court recently reflects the severity of offences committed by VetPharm (NZ) Ltd. and Phoenix Pharm Distributors Ltd and their directors Graeme John Webb, Gary William Gibson, Wallace Bruce Neiderer, and Robert Sadler. Justice Field convicted and
fined the companies and their directors $70,000 plus costs on all charges relating to the importation and sale of two unregistered veterinary drugs over several years. “I’m pleased a lot of hard work by NZFSA investigators has resulted in such a clear message,” says Geoff Allen, director of compliance and investigation. “The message is the importa-
tion and sale of unregistered veterinary drugs seriously risks food safety and trade and will result in significant fines.” The investigation around these illegal activities began in mid 2003 after audits of the companies detected inventory and procedural discrepancies. “This proves the systems that NZFSA has in place are effective, and any illegal behaviour in this
area will be detected and the appropriate action taken.” The two drugs at the centre of the case, Ulcerguard and Pentosan Equine, are intended for use in the protection and treatment of stomach ulcers, and treatment for arthritis, respectively. They had not gone through the risk assessment and management process that is part of New Zealand registration.
ANIMAL HEALTH
August, 2005
Dairying Today
43
Treatment based on best evidence going TREATING animals on the basis of the soundest evidence available has emerged as the guiding principle of veterinary practice, and it is well established in New Zealand, says Animal Health Centre, Morrinsville, chief executive and practice manager Ron Gibson. Vets call it “evidence-based veterinary medicine” (EBVM), a concept brought over from human medicine, where it has developed over 15 years. Britain’s Royal College of Veterinary Surgeons (RCVS) says clinicians, public and policy makers realise that, since resources are inevitably limited, decisions on the most effective treatment must be based on the soundest evidence available. EBVM has five steps: 1) asking answerable questions; 2) finding the best evidence; 3) appraising the evidence;
4) acting on the evidence; 5) evaluating your performance. Graduating vets bring background knowledge into a practice and build on this as they gain experience. On this base they build “foreground” knowledge – evidence that addresses specific focused questions. Ron Gibson says Animal Health Centre started a research group five years ago and now has equivalent 2.5 vets full-time at work largely funded by multi-national companies. Their work is in dairying, specifically mastitis and reproduction. Practically, says Gibson, EVBM means a vet will say “let’s do this treatment/intervention now, and here’s the evidence to support our decision”. “Take at-risk cows – cows that have had calving difficulties or infections following calving. The empty rate of
‘No bowing to legal heavies’ Neil Keating WRITING animal welfare codes with legal force has absorbed much of the energy of the National Animal Welfare Advisory Committee (NAWAC) in 2004, says its outgoing chairman Massey University Professor David Mellor. Some of it was spent fending off critics of gazetted codes who accused NAWAC of bowing to “legal heavyweights” acting for industry groups resisting the imposition of standards, Mellor says. Four codes were completed, David Mellor replacing previous voluntary (but deemed enforceable) codes: layer hens, pigs, zoos and circuses. These took effect January 2005. Mellor says the legal force given to minimum standards in the new codes demanded legally much more robust wording which nevertheless had to be clear to all concerned. Regarding legal challenges, Mellors points to “three fallacies”: Far from “submitting” to legal challenges, NAWAC “welcomed” them as leading to “much greater clarity about the meaning of terms, such as good practice and scientific knowledge…and to legally much more robust minimum standards…which provide better protection for those who comply with them than would poorly expressed standards.” Legal challenges did not “heavy” NAWAC into lowering minimum standards; rather they tightened them, enabling the committee to “get the process right on behalf of those to whom the codes would apply directly -- owners and animals.” “The notion that industries want low animal welfare standards is demonstrably absurd.
Diaries help FMD study FARMERS keeping detailed diaries of movements of people, vehicles, livestock and other items off their farms have helped AgriQuality Ltd, Palmerston North, to model the spread of infectious disease such as foot-and-mouth. R. L. Sanson, writing in New Zealand Veterinary Journal, August 2005, described surveying 217 farmers to investigate and quantify movements off sheep and cattle farms. He found extensive distances were covered in these movements, to other farms directly or via saleyards.“This has implications for the potential spread of infectious diseases such as FMD,” Sanson says. The survey enabled the establishment of movement parameters intended for use in the InterSpread Plus interfarm simulation model of FMD, which will “facilitate the prediction of likely spread and efficacy of controls in the unlikely event of a real-life outbreak.”
these cows is around 28% versus whole herd rates of around 7%. Trial work has demonstrated identifying and treating those cows will improve the empty rate and we have cost efficacy data to support that recommendation. “Similarly with non-cycling cows we will tell a farmer, ‘If you treat at the start of mating it’ll cost you $25 and you’ll recover 300% of that cost. If you wait three-four weeks you’ll break even. If you wait longer you’ll lose money’. “The key is to use the most effective known procedure at the best time.” A buzz-phrase in all this is Ron Gibson, Animal Health Centre, Morrinsville. ‘systematic reviews by teams [of achieve alone is limited. Teams can carry the workloads systematic reviews peers]’, says RCVS, because the amount an individual clinician can share experience and expertise and entail.
44
ANIMAL HEALTH PRODUCTS
Dairying Today
August, 2005
Watch hooves in late spring HOOF problems can rise dramatically in late spring when heavy, consistent rain washes races, exposing the hard rock below, says The Wrangler Ltd, makers of lame cow handlers, Whakatane. After a relatively quiet winter, cows resume walking twice daily to the shed and back. In this season, jostling in the yard to establish pecking order is hard on heifers’ hooves especially. Treatment costs, milk withholding, and wasted labour time are something dairy farmers don’t need especially in spring.
So, when preparing for spring, form a strategy for lame cow treatment, the company says. Who will treat them, when and where? Do you have safe facilities, sharp knives and enough cow slips? Ensure staff know what to look for; early detection and treatment are vital. Often the first sign of lameness is the angle of a cow’s back. Normally cows walk with a straight spine. If they have a painful hoof cows will arch their back as they step. As the problem becomes more severe they will limp and favour another leg.
Treat them early, before they become unwell and have trouble getting in calf. Many empty culls at season’s end will have been lame at mating time. Encourage staff to treat hooves by providing safe facilities like a Wrangler. Staff can take their time examining the hoof without the fear of being kicked or having to struggle with the cow. As they become more proficient the vet will be needed only for very difficult cases. The cow will be safe too and won’t ‘go down’ and break her hip while being treated. Having the
Wrangler hold the cow frees up staff for other jobs done. Check the condition of races, concentrating on those closest to the shed. Stones close to the yard entrance can get flicked onto the concrete and cause problems as the cows wait for milking. Bring the cows up the race at their own pace, so they can choose their hoof placement, and don’t push them too hard in the yard. If it’s a problem suggest that the person moving the gate treat the hooves! Tel. 07 307 8255
Boost hoof strength, hardness Ashley Gibson Nutritionist, VITEC DEFICIENCIES of the trace minerals copper, iodine, cobalt and selenium are widespread in New Zealand soils and pastures. Animal body tissue levels for all or some of these minerals can range from inadequate to marginal with symptoms ranging from clinical disease and depressed health and performance, to subclinical problems causing less obvious depressions in performance, fertility and disease resistance. Traditional preventive measures have included topdressing, drenching, drinking water and feed supplementation using inorganic minerals such as sulphates and oxides. While these salts have been reasonably successful in reducing the effects of deficiency, there is evidence mineral availability and utilisation can be enhanced when the elemental mineral is bonded with organic molecules such as amino acids, the building blocks of protein. The vitamin biotin occurs in small amounts in feed but most of the cows’ requirement is synthesised by rumen microflora. Lush spring pasture can often be a causal agent in reducing ruminal pH, leading to acidosis. This compromises intestinal manufacture of B group vitamins, further exacerbating the requirement for supplementary biotin. For much of the year the rate of biotin synthesis may be inadequate for maintenance of optimum hoof hardness and integrity, resulting in increased susceptibility to lameness, accentuated by long walking distances to and from milking. Zinc has been associated with healthy skin, hair and hoof for decades and although gross zinc deficiency is rarely observed in grazing cattle, improvements in hoof integrity have been observed with daily intakes of organically bound zinc which are not seen with inorganic zinc oxide or sulphate. Vitec Nutrition Ltd has developed two water-soluble powders. The first, Hard-N-Up, supplies zinc and copper bound to the amino acid glycine. Glycine is one of the smallest amino acid molecules, a feature that enhances absorption and utilisation of the bonded mineral. In addition Hard-N-Up also contains selenium, cobalt, chelated iodine and biotin. This combination of nutrients covers the common widely deficient trace minerals, plus the benefits of glycine bound zinc and copper and biotin to improve hoof strength and hardness. The second water-soluble powder developed by Vitec Nutrition is Flush-Up. This contains the same range and form of minerals as Hard-N-Up but biotin is replaced with vitamin E as an aid to enhanced fertility. Tel. 09 273 6318
ANIMAL HEALTH
August, 2005
hicle boot or on an ATV, plug it into a trailer light fitting and turn it on, the maker says. The 12V pump delivers water at 17psi through 10m of hose. A 12-month warranty applies. Price $488+GST Tel. 0800 478 789
A SYSTEM said to quickly and carefully milk a cow, protecting her from overmilking yet waiting patiently for cluster removal without stress on cow or operator, is marketed by Milfos, Hamilton. Pulsation Arrest, the “latest in milking technology”, is based on individual cow flow rate. “We have taken a great idea and turned it into reality,” says Milfos company director Jamie Mikkelson. Sensors determine when each cow has finished milking and the system then stops the milking. “Operators can then remove the cluster knowing that each and every cow has been efficiently milked without the worry of under- or over-milking. With Pulsation Arrest the true efficiency of the swingover milking system is not compromised.” Milk flow from each cow is monitored and pul-
sation is adjusted accordingly to ensure individuals are milked appropriately. At the end of milking, all four liners are closed around the teat, shutting off the vacuum to the teat canal and guarding against bacterial infection and cross-contamination. Milfos says international research points to the dangers to udder health and teat condition associated with over-milking, including the increased incidence of mastitis and teat end damage. The company quotes farm dairy specialist Mel Eden as saying “The benefits of this system are clear in managing over- and under-milking. It’s a practical solution to the problem while making milk time safe for the cows.” Automatic cluster removers (ACRs) often break the efficient routine of the swing-over milking system.
Buttons to press and cords to pull out of rams before attachment to cows, all complicate the milking process. Liner life is extended significantly through the reduction in liner flexing while operator and animal stress is reduced. Tel. 07 874 0734
NEW
The soft tip, no drip calf teat SHOOF INTERNATIONAL LTD 0800 800 801
LY E T ON LABL R VE AI U AV YO OM FR
Use it Any Time,
NilTime LV ®
Reg restored by surgery on leg
Pour-on treatment for lice on cattle EE FR
WITH 2 X5
Until sto ck runs limited n out – umbers* *
Whether used for winter or early spring treatment, NilTime’s nil milk withholding allows you to time your application to best suit the season’s lice challenge. One well timed application takes care of lice for the year*. Best results will be achieved when lice populations peak during winter and early spring prior to calving to avoid reinfestation. • • • •
nil milk withholding suitable for beef, dairy cows and calves over 50kg kills over 99% of lice infestation in one dose suitable for use at drying-off time and during lactation
The clock’s ticking and time is running out for optimum results and for a limited number of purchasers we are gifting a timely reminder with every two 5 litre packs.
* Trial data on file shows NilTime to be efficacious out to 56 days. This means a single application will eliminate the seasons challenge whether animals are treated at drying off in Autumn/Winter or around calving in Spring. Reinfestation is unlikely unless treated animals are cross contaminated by exposure to untreated animals.
0800 847 222 0 8 0 0
V I R B A C
www.virbac.co.nz 4715B
Brown, Taumarunui Vets.” Brown referred Reg to Unitec’s VSG where specialist Richard Jerram (inset above) said while he could operate on and fix Reg’s injury with a new cranial cruciate ligament technique, he did not know whether the ligament would ever strengthen up enough to hunt sheep straight up a hill. Smith said go ahead. “The VSG team treated Reg like a king. When I took him in the staff made such a fuss of him that he just walked away and didn’t look back.” Reg recovered and Jerram liked the results. Post-op care included keeping Reg quiet and fitting an arthritis collar. “We took him home and locked him up for a few weeks. He had to suffer the indignity of walks on a lead in front of his mates. In time he made a full recovery.” Without the VSG things would have turned out very differently, Smith says.
L
A KING Country huntaway dog Reg, owned by Ken and Audrey Smith, Meringa Station, near Taumarunui, is back at work after surgery by the veterinary specialist group (VSG) at Unitec, Auckland. The country is big and steep and moving stock takes a lot out of dogs, Smith says. Reg (above, wearing the tie) and his mate Ben Laden work the station and compete regularly at dog trials around the North Island. Both succeed at club level and the national dog trials. Reg (11) qualified for the national champs again this year but needed surgery to keep him working. Last November, pushing sheep down the side of a basin, the dog pulled up sore. Says Smith “everything looked okay but when he came back up to me he was carrying his left back leg. “Reg is usually as strong as an ox and not inclined to injury so I took him down to the local vet Alan
45
Latest milker kind to cows, operators
Washer suits cows, easy to carry on ute, ATV WASHING down cows before and after calving just got easier, with the EES Washmate, portable pressure wash. It does the job of a high-pressure hose, but anywhere, and with disinfectant in the wash water. Fill the 41-litre tank, cart it in a ve-
Dairying Today
**First 75 will have watch model shown after which an equivalent value alternative may be supplied.
Registered pursuant to the ACVM Act 1997, No A8305 See www.nzsfa.govt.nz/acvm/ for registration conditions.
Your partner in Animal Health
Dairying Today
August, 2005
Calf Rearing
When to wean – the big challenge Leonardo Martinez ONE of the main challenges in calf rearing is to determine the right moment for weaning a calf. The most important criteria to be considered is an adequate rumen development. When liquid feed is taken away, the calf must be able to obtain sufficient nutrients from the dry feed it consumes after weaning. Many of these nutrients are provided and metabolised by ruminal fermentation and therefore the rumen must be developed correctly when a calf is weaned. It is wrong to assume that the age of the calf is the correct measure for adequate rumen development. A calf that has scours or goes off its food will delay concentrate intake and consequently rumen development. A more accurate way to evaluate the rumen development is concentrate consumption. How much starter does a calf have to eat to be ready for weaning? As a rule of thumb, when a Freisian/Holstein calf is consuming 1kg of concentrate or calf starter per day for two consecutive days, then it will be ready for weaning. Jerseys are a little different. They’re ready to be weaned when they consume about 500gm/day of concentrate/starter for two consecutive days. Fresh and clean water must be available with free access. The importance of water is frequently underestimated in the rumen development process.
Computerised feeding systems now allow farmers and professional calf rearers to feed with milk and concentrate simultaneously. This will assist to raise calves that develop healthy rumens, which not only effectively utilise the grass energy, but also set the foundation for a high capacity, top-performing fermentation chamber which is a key player in the future milk production process. DeLaval has developed a calf rearing system (the CF150) that combines electronic identification with individual automatic dispensing of milk or milk replacer and concentrate. The sophisticated yet simple and tough processor manages up to 100 calves and feeds them according to their age while reporting to the farmer when a calf is not drinking enough milk. The CF150 also weans automatically every calf by means of assessing concentrate consumption. That means that by the time the calf is eating 1kg of concentrate (or the amount set by the farmer) for two consecutive days, the milk availability will decrease every day until the calf no longer qualifies for liquid feeding. By weaning based on concentrate consumption and focusing on developing a healthy rumen in your calves now, your future heifers will have the greatest chance of becoming your next top-producing cows. • Martinez is nutrition solutions manager for DeLaval Ltd
Immunity starts with dam CALF immunity is a complex issue, but it starts with nutrition of the mother. Paying attention to feeding and management of transition cows not only improves their own immunity at a time when they are most vulnerable to infections, it can also improve the immunity of the calf at birth, says Nutritech International. Trace minerals are especially important, particularly zinc, copper and selenium, because all three affect immune response in various ways. It’s well-known how important it is to get the proper amount of colostrum into the calf in the first hours of life, but we also need to consider the quality in terms of immunoglobulin content. Recent trials have shown that supplementing with organic selenium in late pregnancy results in higher immunoglobulin levels in
the blood of the newborn and also in the colostrum. Organic selenium also confers more innate resistance to infection in the calf than ordinary inorganic selenium because organic selenium can transfer across the placenta in selenium-rich proteins and is also incorporated into colostrum proteins. Farmers can ensure a good supply of organic selenium in their springers by feeding them Bioplex High Five (available from Nutritech International), an organic trace mineral supplement formulated specifically for New Zealand dairy cows. It has the added advantage of also supplying generous levels of organic zinc and copper. Calf immunity and general ability to handle disease challenges can be helped in other ways. Most vets and farmers will be familiar with probiotics such as All-Lac and Acid-
Pak 4-Way, which supply beneficial gut bacteria to give calves a good start. Nutritech’s Dancalf Plus is a premium calf food supplement designed to give calves the best start in life. It contains vitamins, minerals, trace elements, Bovatec (a Coccidia inhibitor), All-Lac, (which supplies beneficial bacteria), and Bio-Mos (aids in strengthening gastrointestinal defense by blocking pathogens such as E.coli and salmonella and by further enhancing immune response). Dancalf Plus should be fed in the milk from the first feed to weaning. As a result, calves are less susceptible to a whole range of infections and have a consistently better growth rate, getting to target weight earlier with improved feed utilisation. Tel. 0800 736 339
Weaning based on concentrate consumption is a key.
47
48
CALF REARING
Dairying Today
August, 2005
CIDR benefit ‘as high as $60/cow’ THE CIDR intra-uterine device has been a part of reproductive management on New Zealand dairy farms for the past 15 years. While its use is widespread, research comparing CIDR treatment to no treatment has not been available until now. Veterinary researcher Scott McDougall has just completed a large-scale trial on 772 non-cyclers, which came about after herd owners and advisers questioned whether CIDR use was conclusively proven to work. After years of studying various CIDR protocols McDougall wanted to test how the current and accepted treatment regime measured up as well as answer questions regarding effectiveness of the technology. During the two-season trial, two groups of noncycling cows were compared. The first group was treated with CIDR using an eight-day programme and then resynchrony,
while a second (control) group was left untreated. The first year’s research focused on CIDR’s ability to get non-cycling cows cycling earlier. The results showed that significantly more CIDR treated cows were submitted for mating and actually fell pregnant in the first month of calving than the untreated non-cyclers. Overall, the results showed that use of CIDR lowered the median days to conception, conclusively proving that more treated cows did in fact fall pregnant earlier. The results from the second year of the trial showed that CIDR treated non-cyclers were 31% less likely to be non-cyclers in the following year measured against untreated non-cyclers. The results also showed that 42% more AB calves were reared from treated cows, and the median calving date was 17 days earlier for treated animals. The economic benefit of
treating with CIDR is approximately $40 to $60 per cow. McDougall makes it clear that other factors also impact on herd reproductive performance such as calving spread, age, body condition score and postcalving disease. These factors relate to farm management practices like feed quality, disease prevention and early identification of non-cyclers. McDougall says these management practices are becoming even more important as production rates rise causing more pressure to be placed on dairy cows. This independent trial proves that treating noncycling cows with CIDR gets more of them in-calf sooner than if left alone. A cost benefit has also been demonstrated. In conclusion, CIDR improves the reproductive performance and profitability of the herd. “It’s doing what we’ve said it’s been doing for the last 15
Treating non-cycling cows with CIDR gets more of them in-calf sooner than if left alone.
years but now here’s clear information that proves that” says McDougall, “In the end it’s got to be biologically and economically effective.”
Silage less calcium money down drain WITH increasing numbers of dairy farmers turning to the use of maize feed and silage supplements to help achieve production gains, or offset feed shortages, the importance of calcium must not be overlooked, says the maker of Calcimate. As animal health specialist Dr Sue Macky remarks: “In too many cases, much of the money spent on highvalue energy crops such as silage, is wasted because of lack of adequate calcium supplementation. “Calcium is one of the most important nutrients for lactating cows and Calcimate is an ideal product to enable them to properly utilise such high value feeds.” Recent anecdotal research, which shows that the majority of New Zealand dairy farmers may not be using any form of calcium supplementation, is therefore of real concern, the company says. Particularly since lactating cows,
NEW
NUTRI-STIR ANIMAL HEALTH & COLOSTRUM STIRRER Nutri-Stir is designed to mix & stir animal health nutrients, minerals, bloat products etc in the holding container, under your Nutri-Dose or other in line dispenser.
NUTRI-DOSE NZ (Sth Island) Ph/Fax 03 236 8323 • Mob 0274 323 728 Email nutri-dose@xtra.co.nz also at... BIO EQUIPMENT LIMITED (Nth Island) PO Box 4182 Hamilton East Ph 07-838 3932 • Mob 021-954 156 Practical Solutions and Equipment Suppliers
• Ideal for stirring colostrum • Units available for larger tanks or custom-built for your requirements • Constructed of materials that will not be damaged by some corrosive mineral mixtures • Animals receive a consistent concentration of nutrients and colostrum – with no settling in bottom of the drum • Easy to install and use EARLY ORDERS ESSENTIAL TO GUARANTEE DELIVERY ON TIME
subject to their size, can require up to 160gm of calcium per day. Because it is an integral component in milk, proper calcium metabolism is essential for optimum cow health and production. Consequently, insufficient available dietary calcium, which in the worst case can lead to hypocalcaemia, will result in a negative effect on farm economics. Dairy farmers should therefore work closely with their vets or animal nutritionists to ensure that their stock are not calcium deficient. In a large number of cases, and of real significance given recent environmental reports, this may be an important solution to achieving higher production without any need to increase herd size, the company says. Manufactured from high quality calcium carbonate, Calcimate can be used either as a dusting powder with silage, applied directly onto pasture or mixed with water and drenched.
VINK CALVING JACK
Ideal for use on a cold and rainy night, when you’ve got no help available, and were just settling down in front of the fire for a bit of TV, and someone calls to say you’ve got a cow down having trouble calving.
The Life Saver
Best purchased before needed, not after.
Standard model..........................$795 Long-pole model........................$825 Heavy-duty Beef model......$1,045 Prices include GST and Delivery
All Stainless Steel Long pole Calving Jack has pole 20cm longer than standard model. Beef model is stronger construction with a wider frame, and heavier pole.
Available now at Shoof Shop Call free 0800 800 801 to find the store nearest you.
CALF REARING
August, 2005
Dairying Today
49
Don’t let meal price cloud judgement ANY parent knows how hard it is to get their kids to eat Weetbix without sugar on them, and calves are no different when it comes to meal feeds, says NRM’s Rev Crawford. Palatability is absolutely essential to get young calves taking an interest in meal from an early stage in their life, he says. “Basically, the sooner you get them interested, the sooner they will start eating it, providing them with a high source protein and of high digestible energy and excellent springboard for rumen development.” Many “farm-made” meals will include molasses almost as an afterthought to try to increase palatability. However simply adding molasses to increase calf appeal can have a detrimental effect on the feed, by reducing the feed’s protein value even further. Often these farm-made feeds are already too low in optimum minerals and nutrients, with barley only around 10% protein, says Crawford. A truly effective starter feed needs to be high in protein, balanced and contain products with increased digestibility. The high level of protein enables the calves to develop tissue and muscle rapidly, while also assisting the rumen to develop quicker. Crawford says it is easy for farmers to be distracted by the apparently cheaper and plentiful availability of farm ground
meals, yet the components of these feeds can actually have a damaging effect on a young calf’s development. Feeds such as barley contain low levels of calcium, less than .05%, and a phosphate level 10 times higher than the calcium level. The ideal ratio of calcium to phosphorous is 2:1, and clearly not met by barley grain feeds. Many farm-made meals also run the risk of giving young calves acidosis. If the majority of the calf’s energy is coming from the barley starch, the pH will drop rapidly in the calf’s gut, resulting in acidosis and seriously affecting the calf’s growth rates. Commercially available feeds have added buffers that will help counter the effect of acidosis, and also provide the calf with energy from sources other than barley starch. Changing feeds can also result in digestion problems, and feeds such as NRM’s calf range have the Moozlee flavour link formula that ensures calves move through transition feeds without any growth checks. While the cost may seem higher for commercial feeds, the science and formulations behind them ensure that calves maximise the energy contained within those feeds, and move on to pasture at higher weaned rates and better margins to their rearers.
Fresh push for kids’ calf clubs AS calving begins on dairy farms, a website designed to bring children and calves together and foster “a rural institution” has been relaunched. www.calfclub.co.nz was developed by Livestock Improvement to help stem a decline in the number of calf club events at rural schools. LIC’s Clare Bayly says calf clubs, once regular at most rural schools, are declining. “One reason was the need for consistent, farmer-tested guide-
lines on selection, care and training of calves, a job usually falling to busy teachers and/or busy mums and dads. “This website fills that breach by providing information direct to children so they can learn and apply that learning in the paddock with their pets.” The website has easy-to-understand language and illustrations, and a diary for downloading to track progress. LIC writes each year to about 900 rural schools, inviting them
to register their calf club events on the site, and asking them to encourage their pupils to use the site as a resource to help them rear their animals. All registered events receive a ribbon presented by an LIC rep to a winning child/calf combination on the day. “Hundreds” of schools and “thousands” of children have begun using the site for information and letters are coming from schools, teachers, parents and children, the company says.
50
CALF REARING
Dairying Today
August, 2005
New calves persistent NEWBORN dairy calves have shown remarkable sucking persistence during hand rearing by researchers at Massey University’s Animal Welfare Science & Bioethics Centre. The New Zealand Veterinary Journal, August 2005, reports most of 171 calves were found efficient drinkers within 48 hours of birth. Only a small number of slow feeders needed individual feeding up to four days after birth. The calves were fed individually from bottles for four days after birth. Researchers measured the colostrum drunk and duration and speed of drinking. The calves had been separated
from their mothers and brought into a rearing shed in the morning, at 24 hours age. There they were offered two litres colostrum by bottle in the afternoon of the same day, and twice daily after that. The day after birth, 95% of calves drank the two litres colostrum offered during the afternoon feed, and by day four 99% of calves drank the full amount offered. Calves that had inadequate colostrum from their dam were more likely to have drunk all two litres offered after their collection, but a small number of calves that had not had colostrum from their
dams and drank 500ml at the afternoon following collection were likely not to have drunk two litres on the following days. However, calves that did not drink all two litres on day one were not disadvantaged in comparison to those that did, in that they were equally likely to drink two litres on day four. The authors concluded that whilst the majority of calves became efficient drinkers within 48 hours of birth, a small number of slow feeders need individual feeding for at least up to four days after birth if they are to thrive. The original article is available from www.sciquest.org.nz.
Teats open, don’t drip FORTY years work to replicate nature paid off for Excal, the calf-feeder teat maker bought in 2001 by Shoof International, Cambridge. The Excal Big Softy teat for gravity calf feeders has become a standard in its field, Shoof says. “Farmers all over New Zealand and the world grapple with the challenge of trying to replicate nature as closely as possible, by producing the most efficient calf feeder teat,” says Shoof managing director Geoff Laurent. “But some quirks of nature needed to be eliminated. The challenge was to produce a gravity calf teat allowing full milk flow, and com-
Prepare for more milk this season
Paint to win
Bovatec® like Rumensin® is an Ionophore. Bovatec® is a natural rumen modifier for improved milk production and animal health New Zealand research shows Bovatec® aids in: • Improving weight gain and coccidiosis control in cattle • Increasing production of milk solids in dairy cows • Control of ketosis in dairy cattle with subsequent improvement in immune function which can aid in reducing the incidences of clinical mastitis in lactating cows • Reduction in bloat score in cattle on pasture Internationally Bovatec® is the Ionophore of choice due to its superior palatability and wide safety margin: • Bovatec® has a 10 fold higher safety margin for horses and dogs than Rumensin®; and • Feed intake is higher with animals fed Bovatec®
NRM0041
Bovatec® is available as a pellet or premix for adding to feed; a simple and reliable method of application both pre and post calving, or in a liquid for daily drenching.
Registered pursuant to the ACVM Act 1997, A6956 and A4395.
fortable and easy for the calf to use, while not leaking.” The Big Softy has an inverted tip whose vertical slit opens wide as soon the calf closes its mouth on the teat. When the calf releases the teat the gravity pressure of the milk inside the teat tip closes the outlet. No valve system is needed and the Big Softy cleans in place with minimum extra attention. It fits all standard 2022mm pull-through teat holes. A reduced-flange bottom side enables the teat to be mounted low in the milk container for least wastage. Available from rural supplies stores. Tel. 0800 800 801
AN art contest for rural children is being run by Livestock Improvement to promote the company’s calf club website, launched three years ago. www.calfclub.co.nz is a child-friendly website providing farmer-endorsed information on selecting, feeding, caring for and training calves for calfclub contests. Each year the company writes to rural schools inviting them to register their events on the site and encourage their pupils to use the site. Hundreds of schools are reg- The 2004 winning entry from istering events on Emma Brooker (6), Maruia the site, LIC says, School, Nelson. and the art contest “celebrates the bond between children and their pets.” Hand-drawn pictures of calves, using any technique or materials, should be sent to Clare Bayly, LIC, Private Bag 3016, Hamilton, by Friday 16 September. Results will be announced 19 September. The top 10 artists will each win a prize pack.
Your Vet has the answer. A new safer calcium injection ™
Calsafe
Calsafe provides significant advantages over older traditional infusions. 1. No free boric acid, minimal stress on the cardiovascular system. 2. Rapid and simultaneous restoration of Ca, Mg and Phos levels to a healthy 5.6:1 Ca/Mg ratio. 3. Good local and systemic compatibility, even in cases when dosage needs to be repeated. 4. No messing around with flutter valves.
STEP 1
The ultimate Milk Fever prevention and treatment regime
Inject with Calsafe if the cow has no swallow reflex
Registered pursuant to the ACVM Act 1997, No. A8110
Marketed in New Zealand by
Ethical Agents Ltd
ETHICAL AGENT S LTD VETERINARY MARKETING
Phone 0-9-262 1388 Freephone 0800 800 624 E-mail: eage@xtra.co.nz Website: www.ethicalagents.co.nz
72667 Calsafe-Calol Ad.indd 1
Registered pursuant to the ACVM Act 1997, No. A7044
ASK YOUR VET
STEP 2 Administer Calol as soon as your cow can swallow.
7/14/05 2:36:02 PM