Dairy News 11 August 2015

US leadership blamed for TPP failure. PAGE 3 CASH IS KING Breed beef calves PAGE 14

AUGUST 11, 2015 ISSUE 340 // www.dairynews.co.nz ZOE10869 Dairy News - Front Cover Lug - 50x90 - R01.indd 5/08/151 10:06 am

GETTING ALONGSIDE FARMERS “Given the current environment, over the next 12 months the council needs to get close to our farmers.”

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DAIRY NEWS AUGUST 11, 2015

NEWS // 3

US leadership blamed for TPP roadblock PETER BURKE peterb@ruralnews.co.nz

A LACK of leadership within the American dairy industry is one reason why the Trans Pacific Partnership (TPP) talks ground to a halt recently in Hawaii.

That’s the view of DairyNZ chairman John Luxton, one of the industry leaders, officials and ministers at the recent talks. He told Dairy News the stalled talks are not all bad news as it will give the protagonists time to “recalibrate the world dairy issue”.

Luxton says the US, the biggest trader of dairy exports in the group (48% vs NZ at 32%) was effectively trying to have a dollar each way in the negotiations, which would have disadvantaged NZ, hence the negotiations were unsuccessful.

“With a recalibration and a forward-looking approach by the US dairy sector there is a chance we can make more progress before the TPP is finalised.

“Australia and NZ work closely together but it needs the US to come onside now and say their interests are in the original intention of the TPP. This involves a commitment to remove trade barriers rather than erect new ones because there is an element of that going on in this case.”

Luxton says if there was a commitment by the US to take a more liberal approach he’s sure Japan and Canada, with prompting by the US, will see it

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Japanese farmers took to streets of Tokyo last month denouncing TPP.

was also in their interest to do the same. He says the Japanese market is now shrinking rapidly even at the high prices its farmers are paid. Farmers there average late-60’s in age and number only 10,000 – it’s a small industry.

“The point is in terms of the TPP discussions dairy to NZ is the equivalent to the Japanese auto industry. So we have to make sure it is on the table for the TPP region with the long term intention of removing tariffs. Likewise Canada, which essentially sets its own prices which are uncompetitive in the world market. I’m sure Canada realises that supply management isn’t the way of the future.”

Luxton says in some cases tariff protection in Canada is close to 300%. NZ is unique in that 95%

of our dairy exports are traded on the world market.

“The nearest to that is Australia with 50%, so even the Australians have the huge buffer of their local market, and their industry size is about half ours. The NZ dairy industry has a future, but a key thing that must happen with this TPP is long term removal of the tariff protection that currently exists, particularly in the US but also in Canada and Japan.”

Luxton says while Canada’s elections are reported to be affecting position at the talks, he finds it unbelievable that 10,000 dairy farmers there are holding the country to ransom. Likewise in Japan where 10,000 dairy farmers are influencing a nation of 130 million people. @dairy_news

facebook.com/dairynews

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THE LATEST drop in the Global Dairy Trade price index will impact many farmers carrying a lot of debt, says DairyNZ chairman John Luxton.

Now banks must give young farmers leeway as they work their way through the crisis.

“Hopefully in 12 months there will be a much stronger industry going forward,” he told Dairy News.

The price index fell 9.3% in the latest GDT –

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the 10th consecutive fall, bringing it to levels not seen since 2002.

Whole milk powder, a crucial product for New Zealand, fell by 10.3% on average to US$1590/ tonne.

Skim milk powder prices slumped by 14.4% to US$1419/t on average.

Anhydrous milk fat prices fell by 11.7%, butter by 6.1% and butter milk powder by 5.1%.

Luxton says NZ is very exposed to a thinly traded market.

“One outcome of the low GDT is likely to be a rapid lowering of our cost systems and probably some reduction in milk production out of NZ. “When you look at the world market there isn’t a big overhang of surpluses despite what people are saying. The supply and demand is reasonably well balanced.”

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DAIRY NEWS AUGUST 11, 2015

4 // NEWS

Getting alongside farmers is key – new chairman SUDESH KISSUN sudeshk@ruralnews.co.nz

HAVING BEEN raised

on a 70-cow farm in Taranaki, Fonterra Shareholders Council’s new chairman Duncan Coull knows a lot about resilience.

Coull’s parents raised him and his four siblings on the farm and he is thankful for that upbringing. “It taught me about “mucking in and making do to get by – the no 8 wire mentality,” he told Dairy News.

The Otorohanga farmer has put these skills to good use; Coull and his wife Julie started as variable order sharemilkers and today own two farms milking 700 cows.

Last month he took over the reins of the farmer-elected body after serving as deputy chairman for 12 months.

Fonterra’s 10,500 farmers face one of their biggest challenges since the co-op’s formation; the slump in dairy prices has slashed the forecast milk payout to below cost of production. This follows another poor payout -$4.40/kgMS milk price -last year.

Coull agrees most farmers feel very anxious and vulnerable. However, farmers are aware that it’s a wider issue being played out in the global market place over commodity prices. “It’s an issue we have faced as long as this industry has been in New Zealand,” he says.

Coull’s message to farmers is to focus on things they can control on farm.

“This is a time to focus on what we are good at. If we voice our concerns in the public forum, living now in a global village… if we’re crying foul and

struggling to make money and send a message to the market that things aren’t going too well for us, that’s sending a wrong message.

“We need to send a message that we’re resilient and we’re going to get through this and get out the other side.”

Apart from his farms, Coull is a founding shareholder of the consultancy company Rural Business Solutions; he started the business in 2006, following a three-year stint in banking.

He recalls that the consultancy business grew during the last downturn in 2008-09. “We guided a lot of business through some tough times; that experience has also taught me a lot about resilience… and about identifying issues in a business -- working through those issues with a defined plan and getting out the other side.”

Coull, elected to the council five years ago, was shoulder-tapped by his fellow farmers to join.

“I felt compelled out of a sense of responsibility given the industry had been good to Julie and me and it was time to contribute…. I had no aspiration to become the chairman in five years.”

The 35-member council tracks Fonterra’s performance and represents farmers’ views to the board. It has recently been criticised for not taking the board to task over poor performance and low milk payouts.

Coull says the council has been “as visual as we could have been”.

For good reasons discussions should be had behind closed doors.

Coull dislikes the council being called a shareholder watchdog. “I have a real issue with the term watchdog; given that the

New Fonterra Shareholders Council chairman Duncan Coull on his farm at Otorohanga.

council’s role and mission statement is to improve farmer returns through effective representation and monitoring, I see the watchdog tag as quite destructive. I’d rather use the term ‘cornerstone shareholder’ – As a cornerstone shareholder we have to be responsible and accountable for our actions and work to protect and enhance our co-op’s value in the interests of all shareholders through our monitoring and representation function..”

Coull thinks the council has in the past been too inward-focused in its

JOB LOSSES ‘NOT LINKED’ TO PAYOUT WOES FONTERRA IS on notice from shareholders to improve its performance, says new Shareholders Council chairman Duncan Coull.

He says shareholders will need to work with the board and management to ensure this happens.

Fonterra’s performance is based

on two things: the milk price and the dividend from its value added business, Coull says. “It’s well documented by council that Fonterra’s performance needs to improve. It is highly critical in a year such as this that the strengths of the co-op shine through and we see the full benefits of vertical

integration.”

Coull says the Australian business remains an issue for the co-op. “Fonterra has been reasonably transparent about its Australian business which is good.

We have told the board we would like to see clear pathways to resolving those issues.”

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monitoring role and hasn’t fulfilled the representative role well.

He believes the council must focus on connecting with farmers.

“In the past farmers have viewed us as the watchdog and monitor, at the expense of being close to [them] and understand-

ing their views and how they view the co-op.

“Given the current environment, over the next 12 months the council needs to get close to our farmers by whatever means is effective in each ward.” @dairy_news facebook.com/dairynews

LIFT PERFORMANCE RECENT JOB LOSSES announced by Fonterra aren’t linked to the low milk price faced by farmers.

Fonterra Shareholders Council chairman Duncan Coull says the co-op signalled to shareholders in May that this was happening as part of a longer term plan.

“Contrary to some commentary, we don’t feel this is a reaction to a low milk price. It’s about becoming more efficient and agile in the way Fonterra conducts its business.”

The co-op last month said 523 staff would leave this month, and more job losses are on the cards.

Coull agrees there is a personal cost for employees. “In my interaction with employees, I know many are passionate about working in Fonterra; we need to be respectful of that personal cost to them and ensure they get the support required.”

DAIRY NEWS AUGUST 11, 2015

NEWS // 5

Rowan raises hand for Fonterra board SUDESH KISSUN sudeshk@ruralnews.co.nz

MYFARM DIRECTOR Grant

Rowan is considering another tilt at the Fonterra board elections.

Rowan, who missed out last year, told Dairy News he was “seriously considering” standing again.

“I had a reasonable level of support last year; obviously it wasn’t enough to win a board seat and

I’m hoping to do better,” he says. “I never made a secret of the fact that I had interest in standing again.”

The key issue he sees for Fonterra is demonstrating “the compelling long-term benefits that flow from remaining a strong and united cooperative”.

Rowan says Fonterra needs to lift its game – perform better and drive better returns to farmers.

He wants the co-op to reward farmers for their commitment.

‘WE UNDERSTAND VOLATILITY’ FARMERS UNDERSTAND volatility and milk price fluctuations, says MyFarm director Grant Rowan.

He says this season volatility is impacting farmers more than ever.

“Farm budgets are under extreme pressure and many farmers will be losing money,” he says.

But Rowan expects prices to bounce back.

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the results “Farmers undershareholders stand the readeserve.” sons to supply Three Fonmilk to and supterra directors port the co-op; -chairman in turn Fonterra John Wilson, must have farmBlue Read and ers’ best interNicola Shadbolt ests at heart.”

-- retire by rotaRowan also tion this year. wants Fonterra All are expected to improve its to contest the relationship Grant Rowan, MyFarm director. election. with farmers.

Nominations open next month; If elected Rowan says he’ll bring a “commitment to the suc- all candidates can take part in a cess of Fonterra and make it the roadshow to meet shareholders dairy cooperative, milk processor and answer questions. An assessand marketer of choice for all New ment panel will interview candidates and present their report to Zealand dairy farmers”.

“We need to respond to a shareholders before the vote.

Voting will take place until changing world where competition is increasingly tough. Fon- Fonterra’s annual meeting in late terra board and management need November; election results will be to be on top of their game to deliver announced at the meeting.

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For the fifth year running the co-op, with 114 suppliers, has beaten the other processors including Fonterra.

Tatua’s payout is nearly $2 above Fonterra’s 201415 payout announced in May. Tatua is also expected to comfortably beat Open Country Dairy, tipped to pay its suppliers around $4.91/kgMS. Last month, Westland forecast $4.80-$4.90 as its final payout for last

season.

Tatua has also announced an opening forecast of $6/kgMS for this season.

Unlike the other processors, Tatua does not trade in whole milk and skim milk powders, butter and cheese. Its base products include caseinates, anhydrous milk fat and whey protein caseinate.

Tatua chief executive Paul McGilvary says Tatua’s product mix enjoyed better returns last year.

But he points out this has not always been the case.

“There have been times

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when milk powder fetched better prices than our products,” he told Dairy News.

He says the bulk of Tatua’s products are in specialised value added categories – aerosol creams, bio-nutrients and speciality nutritionals; it

cessors. “With DairyNZ putting the average cost of production at $5.70/kgMS, there isn’t much left for our shareholders.”

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DAIRY NEWS AUGUST 11, 2015

6 // NEWS

Co-op’s polluting negligence shows ‘deeper malaise’ PAM TIPA pamelat@ruralnews.co.nz

FONTERRA HAD been “flat-footed”

in complying with environmental requirements and failed to make the necessary investments when the industry was at its height, says Judge J.A.

Smith. Releasing his judgment in the Bay of Plenty case, the judge criticised Fonterra actions as bordering on negligence and deliberateness in not making the necessary investment to comply with consents.

Fonterra should also have been inspecting and advising its suppliers on the steps necessary to comply with

their consents.

Now the company is having to make these investment at a time when the returns are not as high, the judge said.

It was difficult for the court to impress upon farmers their obligations under the act, but when Fonterra “is found to have failed to invest in such a basic way, this task is made more diffi-

FONTERRA PLEADS GUILTY, FINED $174,000 FONTERRA HAS been fined $174,150 in Tauranga District Court for six separate offences under the Resource Management Act. Fonterra pled guilty to all six charges and was sentenced by Judge Smith at a hearing on July 27.

The Bay of Plenty Regional

Council brought the prosecution against Fonterra after four failures of Fonterra’s wastewater (whey) irrigation system at Edgecumbe and two overflows of wastewater to the stormwater system at Fonterra’s Edgecumbe plant resulted in pollution entering the Rangitikei River and other smaller waterways

between September 2014 and April 2015.

During the hearing, regional council staff presented evidence that Fonterra had failed to put adequate systems in place to prevent the overflowing wastewater from discharging beyond the site, into the Rangitikei River and a nearby drain.

Fonterra’s Edgecumbe plant.

cult and this is a significant disappointment to the court,” Judge Smith said.

He said it was “regrettable” a company director or one of the senior managers responsible for capital investment had not attended the hearing. He asked Peter Bird, regional operations management – central North Island, who did attend, to “report his disquiet to the board”.

He warned that if dairying is to continue on the Rangitikei Plans, everyone including Fonterra needs to make sure systems work properly.

Earlier the judge said four of the irrigation offences were, for the purposes of the case, examples of a “deeper mal-

aise in the irrigation application system used by Fonterra” and “representative of a systematic failure by Fonterra”.

Judge Smith said he is now told Fonterra is intending to upgrade irrigators and use cut-off devices, GPS trackers, monitors and other equipment the court routinely requires parties who are charged with offences to install.

“Can I say that I am amazed – and I use the word amazed – that this did not occur 10 years ago when these issues were clearly highlighted by the court in a number of decisions,” Judge Smith said.

“Fonterra should be an industry leader, not a laggard in regard to the adoption TO PAGE 7

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DAIRY NEWS AUGUST 11, 2015

NEWS // 7

Luxton to step down PETER BURKE peterb@ruralnews.co.nz

IT’S TIME for the next generation to

have a go, says John Luxton, reflecting on his decision to step down as chairman of the DairyNZ board.

Luxton told Dairy News that as he nears his 69th birthday the prospect of another four year term on the DairyNZ board seems too much. He will also retire at DairyNZ’s annual meeting in October.

He was the founding chairman of DairyNZ, overseeing the merger of Dexcel and Dairy Insight eight years ago. The merger was a challenge with both organisations resisting change, he says. He was delighted to be a part of that change.

“They were two very good boards and they saw the world slightly differently. So eventually the call came from the industry to combine the two and that’s what created DairyNZ. For me it’s been about the people and building and refocusing the organisation to meet the challenges of today which are different from 40 years ago.

“Though we merged two organ-

isations we have firewall between the investment side and operational side. We contract a lot of the work through CRI’s and universities and I think we have much bigger impact as a result of being able to contract the best in John Luxton the field.”

Luxton was born in Morrinsville, graduated from Massey University then joined the Ministry of Agriculture as a farm advisor in Palmerston North. He and his late wife moved to the Waikato where they took up dairy farming.

“I first came into the industry in 1972, the year the UK joined the then EEC and the battle was on for NZ to maintain access for its butter. We are still trying to get better trading arrangements as we did then, only this time we’re facing the USA, Japan and Canada in the TPP round,” he says.

While farming in the Waikato, Luxton joined the Tatua board. He spent two years as an agricultural con-

sultant in Africa and later on four years in Malaysia in a similar role. But like his father Luxton found the lure of politics hard to resist and he was elected to Parliament in 1987. When National won the treasury benches he was elected to the cabinet, serving under Jim Bolger for six years and Jenny Shipley for three years.

He held a wide range of portfolios – Minister of Agriculture, Minister of Commerce, Maori Affairs, Police and Customs. He retired from politics in 2002 and went back to farming.

While Luxton may soon be gone from the board of DairyNZ, he will maintain a strong presence in the agri sector.

He is a Tatua director, chairs an iwi farming group and retains an interest in dairy farming.

“These are challenging times for the industry but it’s has been through these before and we’ll work our way through this one,” he says.

Co-ops ‘deeper malaise’ FROM PAGE 6

of appropriate technology to avoid environmental effects.”

The judge said he considered the whey-water irrigation discharges are four examples of continuing system failure by Fonterra to address its obligations in respect of its resource consents and its environmental obligations to the wider community of New Zealand.

From 2010 to the start of the prosecutions was “a period of under-investment in the irrigation systems”.

“Fonterra, through counsel, has accepted that they dropped the ball,” he said.

“I think the matter is more serious than that. I think there was carelessness bordering on deliberateness not to spend money on improving systems.”

Judge Smith goes on to say, “I must assume, therefore, that the decision not to invest in bringing their irrigation systems up to speed was seriously careless at best. It was a systemic failure. It related to under-investment in irrigators, in pipelines, in hydrants and retic-

ulation systems.”

Later, addressing permeate discharges, Judge Smith said it was a disappointment for the court, after four years, to still have staff failures as an explanation for a discharge. Partly because of the complexity of the reticulation system on site, staff were not aware where various products were going once they discharged through the sumps.

Judge Smith said he thought this issue was addressed in 2010 – but apparently then Fonterra reviewed only the central sump systems. An entire review of the discharging process was now occurring, he was told.

In general comment Judge Smith says although there is a disconnect between the irrigation offences and those from the plant, “they represent a decision, it seems to me, to prioritise productivity over the environmental consequences of discharge”.

The judge said he hoped he did not have to see Fonterra again in the court.

But he said he thinks he said that last time.

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DAIRY NEWS AUGUST 11, 2015

8 // NEWS

Use supplements wisely Brown PETER BURKE peterb@ruralnews.co.nz

USE SUPPLEMENTS wisely and strategically: that’s the message from DairyNZ chief executive Tim Mackle as farmgate milk prices keep dropping.

One farmer told Dairy News that in July he and many others received no money from the company they supply, as the effects of the dairy crisis deepened.

Mackle says based on a milk price of $4.00/kgMS the average dairy farmer’s deficit will average $250,000 for the current season.

But rather than cease spending farmers must spend wisely and strategically with the goal of returning to their present equity

position as soon as the crisis is over.

Cutting spending that has a marginal benefit must be looked at closely, Mackle says.

“You can waste a lot of money chasing marginal production in a year like this, [so] we are helping farmers think through Tim Mackle the opportunity to cut marginal production that is not making any money and in fact is possibly costing money.

“Interestingly, I have heard that some farmers are worried that cutting production might worsen their overall result. The key message is as long as you are reducing your costs at a faster rate than you are reducing your

milk production then you are going to get a better net result.

The more we narrow the gap the faster a farmer will recover to his current equity position.”

But Mackle does not advise cutting supplements altogether. Right now when many farmers are in a feed deficit situation, it is entirely appropriate to feed out to keep cows in good condition, he says.

DairyNZ has an online supplement price calculator which works out profitable supplement use based on milk price, post grazing residuals and supplement type. Dairy farmers can do the maths online, but with milk at $4/kgMS, farmers hould

spend no more than $100/tonne to feed to cows getting adequate pasture, Mackle says.

“As summer arrives, when farms head back into a feed deficit, it’s time to capitalise on the lower costs achieved in spring. Unprofitable production at this time comes from cull cows eating expensive feed, including maize silage, wrapped bales grown onfarm and bought-in supplement. We are likely to see farmers offload excess cull cows earlier this season, particularly if dry conditions arise – always a risk to manage with an El Niño weather pattern looming.”

The DairyNZ Tactics campaign is this month offering one-to-one and group support to help farmers with pasture management through spring.

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refutes criticism PETER BURKE peterb@ruralnews.co.nz

THE FORMER head of the Fonterra Shareholders

Council, Ian Brown, has dismissed claims about the relevance of the council.

Trevor Hamilton, a large scale family corporate dairy farmer said recently (Dairy News July 7) the shareholders council was weak and would be better replaced by a small group of commercially smart people who could seriously challenge the Fonterra board.

Hamilton also questioned whether the council was adding any value.

But Brown says Hamilton misses the whole point of what the shareholders council does. It is much more than a performance monitoring organisation, though that’s one of its tasks, he says.

“The other task is to represent the views of our farmers to the board. So he’s grabbed one piece, if you like, relating to performance monitoring and suggested there might be a better way to do it. However he’s missed the purpose of what the shareholders council is designed to do.”

Brown says when Fonterra was formed the governance and representation areas were deliberately separated out. This saw nine farmer elected directors plus four independent directors on the board plus a farmer chair.

“So farmers have their peers governing the organisation, making the decisions, setting the strategy and in charge of performance. Then you have a representative body which is absolutely the opposite.

The directors are elected on merit, they are not there to represent anyone or area or group of people.

“But the shareholders council, with 35 members, is regional based so it can capture the unique needs and circumstances of different regions.”

Brown says the regional representation is important because it’s possible the elected Fonterra directors could come from just a few regions and may lack upto-date information about farmer views nationwide.

“Every month shareholder council members are among their farmer groups, having ward events and dinners and interacting with farmers. They quickly pick up the views and sentiments of farmers and these get conveyed to the board by a formal report and by the chairman of the shareholders council being present at Fonterra board meetings,” Brown says.

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DAIRY NEWS AUGUST 11, 2015

NEWS // 9

Big push could see TPP through pamelat@ruralnews.co.nz

ONE BIG push could

see the Trans Pacific Partnership deal through, says trade expert Stephen Jacobi.

The TPP deal is now not likely to see tariff elimination for dairy, but it will open new access which will benefit the New Zealand industry, says Jacobi, executive director, NZ International Business Forum.

Many issues were resolved in the Maui round of TPP talks despite a deal not being reached. Negotiations have now been narrowed down to a few issues, including dairy, motor vehicles and intellectual property, Jacobi told Dairy News.

“It is no secret to anybody that NZ needs to have satisfaction on dairy.

It would be unthinkable… that a country with 25% of

its exports in a particular product would say ‘we don’t need to have that included’.”

And it is not just NZ with an interest in dairy.

“The United States has a very competitive dairy industry; it is a much bigger producer than NZ is,” says Jacobi. “It is also much bigger producer than NZ in terms of exports and it is a bigger exporter to the TPP countries than NZ.” Jacobi says no FTA in the US has been approved without the support of the agriculture industry.

“So while Canada and Japan may not wish to open their markets, it is not just NZ pressing them to do so. It is NZ, Australia and the US. “There is still a lot of scope to get this agreement through. What the Government has suggested is not a goal of tariff elimination for dairy products – and that is disappointing because we

Two top brands team up again ANCHOR MILK and All Blacks are partnering again after 80 years.

More details on the Anchor milk-All Blacks partnership will be released later this month.

On July 31, 1935 the All Blacks and Anchor milk products embarked on the 17,000 tonne ship Rangitiki and set sail side-by-side for England – the beginning of Anchor’s partnership with the All Black’s tour of Britain, Ireland and Canada.

Fonterra Brands NZ director of marketing Clare Morgan says many of those 1935 players came from dairy farms, as many now still do, and it’s the shared values of the two that fuelled the original partnership and remains true today.

“NZ was built on the hard work and broad shoulders of its farmers. They tamed the land and made it productive.

“True grit and determination have always been the making of our dairy industry and our other world famous exports like the All Blacks.

“In partnering with the formidable All Blacks team… they showed what being NZ-made was all about.”

Morgan says the DNA of Fonterra dairy farmers and their local communities have always contributed to the All Blacks’ success.

“The work ethic and hands-on attitude of dairy farmers lends itself to performing well at the highest level.”

wanted TPP to be a high quality, comprehensive and ambitious deal. But short of tariff elimination you can do a lot to open new access which will be beneficial to the NZ industry.”

He says TPP is now simply a matter of staying the course, keeping calm

and negotiating on. There is far too much invested in the deal to allow TPP to collapse. “It is not just NZ’s interests; this is a major policy plank for President Obama who has sacrificed a lot of political capital to achieve it. This is also incredibly important for Japan and

the whole reform of the Japanese economy and it is important for all the other partners who want to see a more seamless trading environment in the Asia Pacific region.

“So everyone has invested enormous amounts of time, energy

and political capital.”

Jacobi believes one last push should move the negotiation forward but it will require everybody to give a little. “NZ has been prepared to give; it has given away its position of tariff elimination for dairy, so others should be prepared to open their

markets.”

But negotiations haven’t worked before.

“Think of the WTO; but my feeling is still that this deal will be done later this year. The longer we leave it the harder it becomes and no one wants to turn this into another WTO, so fingers crossed.”

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DAIRY NEWS AUGUST 11, 2015

NEWS // 11

Buyers dictating terms ANYBODY WATCHING

international dairy markets knows it’s a bad time to try to move product. Buyers are sitting on relatively comfortable stocks, looking to dictate terms, as weakness in GlobalDairyTrade (GDT) results flows readily to other transactions.

Sellers are reportedly receiving off-GDT bids based on anticipated starting prices for the next auction (typically 15% below the most recent average). Milk is being dumped in the US, protests and warnings of a ‘dairy crisis’ are re-emerging in Europe, and New Zealand farmers are bracing for another loss-making season as payout forecasts are cut further.

It all looks dire, especially given that the current six-year low comes only 18 months after record high prices in early 2014. But such is the price cycle for the markets into which most dairy exports are sold, and against which an even larger proportion of production is ultimately priced.

As dramatic and destructive as these swings and roundabouts

can be, for the most part they come back to basic economics: supply and demand. And at the moment supply has overshot demand.

The economic signal to increase production was heard loud and clear in 2013-14, and milk output has been increasing in most key exporting regions since. Only in recent months have lower farmgate prices begun to sound the opposite signal, while lower prices have helped stimulate demand in more price-sensitive markets. So how long will rebalancing take?

With its overwhelming export exposure, NZ is as usual at the pointy end of the market.

Farmgate prices fell from NZ$8.40/kgMS in 201314 to NZ$4.40/kg MS in 2014-15, but that – and a South Island drought – didn’t prevent the Kiwis from producing a record volume of milk last season – almost 22 billion L (up 2.8%).

After initial hopes of a recovery, the price outlook for this season is marginally worse, with the bulk of recent forecasts close either side of $4.00/ kgMS. These are lossmaking numbers for many, but as local analysts put it, “NZ dairy farmers are

renowned for milking their way out of trouble”.

If the weather is favourable through spring (while variable costs are low), farmers will be looking to produce as much milk as possible to cover the higher proportion of fixed costs built into many NZ operations. It will be later in the season, when pasture becomes limiting and ‘feed versus cull’ decisions are to be made, that any substantial slowdown is likely.

In parts of Europe farmers have taken to the streets as the effects of quota removal, Russia’s import embargo, favourable seasonal conditions and a bearish market more broadly, begin to show up in farmgate pricing.

Data from statistics agency Eurostat shows

PUMPS

milk production expanded 2.4% in April, and around 3% in May – the first two months following the abolition of milk production quotas.

Average farmgate prices are 20% lower than the same time last year and likely to fall further as contracted pricing follows spot prices downwards.

After months of speculation, late in July the first skim milk powder (SMP) was sold into the European Commission’s intervention buying scheme. Manufacturers had been selling product on the spot market below the support level, reportedly to cut stocks and get payment more quickly. While the €1698/ tonne (US$1850/tonne) intervention price will prove increasingly attractive to European sellers and see product

STIRRERS

Sellers are reportedly receiving off-GDT bids for dairy products.

taken off the market in the short term, NZ and US volumes will maintain pressure on markets.

There is also the question of when skim milk powder (SMP) will reappear – possibly slowing the eventual price recovery. Despite the protests, without quotas constraining the fastest growing regions, and in the absence of severe weather impediments, it’s likely to take some months

PONTOONS

HYDRANTS

production will ultimately slow, bringing supply and demand back into balance.

The problem however, is that this adjustment is proceeding particularly slowly. In the absence of a dramatic supply shock (a drought, for example) or a significant upturn in demand, the international dairy market will remain a difficult place to do business for some months.

• John Droppert is a senior analyst at Dairy Australia.

for production to slow substantially.

A strong domestic market has largely kept the US dairy industry in its own bubble in recent months, with cheese and butter prices coasting along well above international benchmarks.

Overall, from a supply perspective, there is light at the end of the tunnel. Market signals are being passed back to the farmgate, and

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DAIRY NEWS AUGUST 11, 2015

12 // NEWS

LIC earnings rise

LIC chairman Murray King.

LIC SAYS its full-year results reflect the resilience of farmers and their commitment to herd improvement.

The farmer-owned co-op total earnings for the full year ending May 31 reached $232 million, 10% ahead of last year. But its net profit after tax was $13.7m, down $4.4m from

the previous year.

The co-op says this largely reflects continued spending on core technology and infrastructure to ensure its technology is up-to-date.

Net profit after tax for LIC includes the annual revaluation to fair value of the biological elite bull team which this year was

an increase net of tax of $2.7m vs a decrease of $0.57m last year.

Chairman Murray King says the results are also testament to the value they place on services and solutions from their co-op.

During the 2014-2015 year, LIC had high demand for its core artificial breeding and herd testing services, with a record number of semen straws (at least 5m) processed during the spring mating period.

Farmers also kept buying new technology from LIC; especially, many used short gestation genetics to improve their herd’s reproductive performance, reduce their reliance on inductions and get more days in milk.

Orders for short gestation semen were double that of the previous season.

Farm automation and sensor technology systems were in steady demand, as was the co-op’s GeneMarkTM DNA parentage

testing service.

A new MindaTM mating app was launched, plus new web-based management tools at Minda. co.nz.

A new automated heat detection system for herringbone sheds (Protrack EZ HeatTM) was installed on more farms; this will be fully launch next season.

R&D spending for the year totalled $16.9m (7.4% of revenue); capital spending on new product development was also high. Combined spending on R&D and new product development represented 11% of revenue.

Work in 2014-2015 included research to improve the accuracy of genomic predictions, a new Johne’s disease breeding value estimate, and investigations into new technology to measure pasture covers, potential new animal health diagnostics tests and automated body condition scoring.

EXTENDED CREDIT LIC SAYS it understands what a challenging time this is for shareholders and is standing firm with them.

The board says it will help farmer shareholders by extending credit with interest free periods for AB products during the peak spring mating season, and with interest-free periods on automation and DNA parentage products.

This should underpin good genetics, as a key driver for the prosperity and productivity of farming businesses.

The co-op will also watch its discretionary costs without impacting service to farmers.

IN BRIEF Airport biosecurity upgrade NEW BIOSECURITY measures will make it tougher for air passengers to bring goods into New Zealand that could carry pests or diseases.

The measures, to be introduced by the Ministry for Primary Industries, are the result of new biosecurity funding from the government’s 2015 budget.

Expected to be in place by December for the busy summer season, the measures include the introduction of 20 more biosecurity detector dog teams, more x-raying of baggage and more targeting of passengers likely to be carrying risk goods.

One of the plans is to use detector dogs to screen passengers much earlier than before in the arrival process for international passengers, says Steve Gilbert, MPI border clearance services director.

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DAIRY NEWS AUGUST 11, 2015

14 // NEWS

Breed beef, boost calf cheque – rearer THE MOST surprising factor, when entering Mark and Michelle Bocock’s calf shed, isn’t the number of calves but the silence. There isn’t a sound.

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one year rears 4000 fourday old calves to 12 weeks.

The Bococks have been rearing calves for 21 years, fine-tuning a formula which obviously favours the calves and suppliers, many of whom have stuck with them all that time.

“In the 1990s I ran a home-kill business and started rearing calves. The first year I reared 100, then 200 the following year and slowly built up to 4000 per season,” Mark says.

As the numbers grew, so did the need for more land with Mark and Michelle eventually settling on 24ha south of Cambridge where shedding was designed and built to enable today’s through-put of calves.

“Over 21 years we’ve reared 60,000 calves, a mix of dairy replacements and dairy/beef bulls, steers and heifers.”

Mark Bocock says that, over recent years with the high payout, calves have tended to be Friesian heifers with a declining number in dairy beef, but he expects this to change.

“When the payout was high farmers could afford to rear extra heifers to either add to the herd or be sold as dairy heifers, but the reduced payout will prompt some farmers to bring heifers home from grazing and they will rethink their calf strategy.”

Bocock said this changing demand has led to recent contacts from dairy grazers wanting to buy quality dairy/beef calves to grow in place of dairy heifers.

“The problem is finding those calves when farmer focus has been on breeding dairy calves. We do 1700 beefies with demand outstripping demand.

This situation will change though, especially if dairy farmers review their mating plans this year.

“The buoyant beef market and demand for quality table beef means there’s a premium offering for quality dairy/beef.

“Beef + Lamb NZ is running a dairy beef integration programme with AgResearch which has highlighted the potential for dairy farmers to treble their income from calves by breeding the tail-end of the herd (after replacements) to proven beef genetics. This means that, this time next year, there’ll be more dairy/beef calves on the ground.”

Doug Lineham, the project manager for the dairy beef integration programme, gives the example of a 300 (Friesian) cow dairy farm, for example, mating 100 cows to high BW sires for replacements and the remainder to proven beef.

“There’s the potential to increase the calf cheque by $14,000 to $20,000 (based on the resulting Friesian/beef calves being worth $70 to $100 each more than straight dairy).

That’s a nice Christmas bonus from a simple change in mating plans,” Lineham said.

With calving underway, Bocock is picking up around 800 calves per week from clients. “Most calves are reared on contract although we also rear calves which are onsold, as 12 week old/100 kg calves.”

Bocock recommends that farmers wanting to take advantage of the potential to increase earnings from calves in 20162017 should be talking with their AB companies or stock agents now.

“You need to ensure you’re breeding the balance of the herd to proven beef genetics, that is bulls registered and with economic breeding values giving you assurance on short gestation, easy calving, temperament, etc.

There are lots of options out there – from breeds to access to proven bulls.”

Based on feedback to date, the number of calves in the Bocock sheds next year will be the same, but the composition might be different.

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DAIRY NEWS AUGUST 11, 2015

16 // NEWS

No-one plays God on milk supply turn, milk returns to farmers. Then comes more delay before the milk supply slows – usually something to affect cashflows onfarm such as drought and/or higher bought-in feed costs.

Once milk producers have set up their production systems – cows in place, and abundant and cheap feed -- the buyers of milk brace themselves for the gush of milk.

The juggernaut can’t be quickly stopped once set

the closure of Russian markets to cheese and butter supplies from the West. Both developments took hold at roughly the same time when farmgate prices were strong and production was gearing up. The strong growth in milk output is the now biggest issue ahead.

Such are the workings of the dairy supply chain that it takes time for big changes in markets to translate into product prices achieved by dairy manufacturers and, in

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The short-term outlook is grim. The world is awash with milk; supply chains are clogged with milk powder in the sheds of big producers in New Zealand, Europe and the US, and in buyer warehouses in the big markets.

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and running, regardless of what milk prices are doing.

When the market is clearly going pear-shaped you will rarely, if ever, see a concerted effort, a ‘God call’ for farmers to slow production. It’s every man and woman for themselves in the farm sector, to optimise their farm enterprise as they see fit. The supply chain deals with the consequences and sends the messages slowly back in the mail.

We’re in a classic, deep market cycle. The theory goes that the best cure for low prices in such a cycle will be low prices – farmgate prices eventually falling enough to dry up milk supply and rebalance the market, driving product prices back up. A change in market dynamics has to come from a slowdown in Europe, the US and/ or NZ. With only 7% of global trade Australia is smallfry.

So, given international prices for commodities have been sliding for 16 months, how’s the milk supply response going? Not well so far, in fact, hardly at all. By our reckoning, the big export producers will collectively add nearly 4 billion L of milk in 2015, two-thirds in the second half of this year.

Can this milk output be slowed?

Farmgate milk prices adjust to market realities in a wide range of

The world is awash with milk and prices are crashing.

timeframes given their different exposures to world markets and the prevailing production, political and corporate environments. NZ exports 95% of its milk, and we’ve seen the bluntness of the message passed to Kiwi farmers.

Despite this savage cut in prices, any NZ supply response in 2015-16 it will be driven by weather and cashflows rather than the season’s milk price.

But for those with large, stable domestic or home markets, the effects of a weak world market are shandied.

Europe sells 13% of total milk output on export markets, but that varies widely across that region. Internal wholesale prices in Europe are affected when world prices change, as trade affects product availability in milk powders, fats and commodity cheese.

EU milk prices have been cut: most are now in a range of 27-30 euro cents/L, one third lower than last year. Local

Also buffering the farm sector is the prevalence of co-ops, reciting their mantra to protect their owners from the ravages of the marketplace and take any milk produced.

Co-ops collect most of the milk in the big producing countries of Europe and the US; they have mastered the art of the cross-subsidy within their pricing policies, allowing stable domestic markets to cushion producers, and putting a base under all prices.

You’ll search hard to find any co-op newsletter that says producers should take opportunities to slow or cut their output.

Given these settings, for faster change in this cycle we should be looking for the next drought, because that’s what it will take. As long as it happens to someone else, right?

• Steve Spencer is a director of Victoria-based consultants, FreshAgenda. @dairy_news facebook.com/dairynews

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analysts reckon a further 10-15% cut will be needed to cause a slowing of output, given the good production conditions prevailing.

There has been no unilateral call for a curbing of post-quota enthusiasm. French, Belgian and British farmers may be jostling politicians with their tractors, and more protests are planned, but Europe’s milk flow is rising. Politicians will react with band-aid cash but the underlying behaviour and market denial won’t change.

The US seems immune to this global cycle, even though weaker export demand has cut milk values.

The US also sells 13% of its milk on export markets, and some regions, e.g. the southwest, are exposed to commodity markets.

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DAIRY NEWS AUGUST 11, 2015

NEWS // 17

Teaser bulls spawn award SUDESH KISSUN sudeshk@ruralnews.co.nz

LEASING TEASER

bulls to farmers has earned Waikato dairy farmer Jennie Macky the best agri-businesswoman of the year title.

Macky who started the Teaser Bull Company two years ago, took out the award at the recent Fly Buys Mumtrepreneur Awards.

The company leases 15-month old sterile bulls to farmers; the bulls help farmers identify cows on heat, improving submission rates in herds.

Once the lease is over, the teaser bulls are sold to freezing works.

and got people talking about the value of using Teaser Bulls.”

Macky, who has five children, believes women can help keep up morale on farms, especially during the dairy downturn.

Mistakes and accidents happen when we are not in the right frame of mind, she says.

“Try to keep the financial stress at home and when out working be as organised, efficient and as positive as you can.

“The welfare of stock, staff and your own self is paramount to running a good business.”

Macky says women should not be afraid to ask advice from “positive people” around them.

a positive.

“So we might make a loss this year but how can we minimise this loss and create opportunity for when the industry

improves? Finally take time with your family, and when you do, sit back and take stock of what is really important in life.”

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“The welfare of stock, staff and your own self is paramount to running a good business.”

Macky and her partner James Kinston are 40% equity partners on a 1000cow farm at Parawera, near Te Awamutu; she is also sharemilking 230 cows on a nearby farm at Kihikihi.

Macky told Dairy News that she was “pretty stoked” with the win.

Judge, Stephen England-Hall described Macky as “innovative, strategic and showing great marketing nous”.

“Teaser Bull is a brilliant concept with a captive market.”

Macky says the award is reassuring.

“It gives reassurance I have started a sound and viable business and at times when I question myself – stick to my guns and make it happen.

“For the business it has created amazing publicity

“No one is immune in the current situation and everyone has a different approach to dealing with it - some good and some not so good.

“Don’t make quick knee jerk reactions that could be detrimental to your business, sit on a decision for a few days and if it still seems right them maybe it is.”

Macky says the beef schedule is good at present; rather than dropping feed and putting cows on the typical NZ controlled starvation diet, maybe it’s more profitable to drop stocking rate a little and capitalise on great cull values?

“For those at home staring at the accounts in dismay, that’s me, get a reality check, do realistic budgets, accept the inevitable and turn it into

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DAIRY NEWS AUGUST 11, 2015

WORLD // 19

Chinese investment in Oz co-op to open doors A CHINESE e-commerce giant has bought a A$20 million stake in a new unit trust launched

by Australia’s largest dairy company.

JD.Com’s investment in the Murray Goulburn Unit Trust has been welcomed as a vote of confidence in the Australian dairy industry.

The international interest came as MG raised its target A$500 million to fund capital investments.

Rabobank International dairy and farm inputs senior analyst Michael Harvey said the investment was a win for both companies.

“We’re seeing strategic partnering becoming more common in dairy and other food and agricultural industries,” Harvey says. “It’s a good thing.”

He says the China market offered a great opportunity for Australian exporters and having a local partnership would help MG to avoid fallout from regulatory changes.

“It’s a huge import market and it’s growing, but it’s very complex,” he said. “Regulatory change and distribution are problematic from time to time so partnering with someone in the market is a winwin.”

Harvey says the JD.Com connection would help Murray Goulburn reach consumers in the market and navigate China’s complexity.

“It’s a wise move,” he says. “Having a partner from China is seen favorably by the Chinese Government and you’re more likely to have access no matter what.”

Dairy Australia analyst John Droppert says the 4.6% stake claimed

by JD.Com was not surprising. “JD.Com has an interest in promoting and selling Australian dairy products into their market, and having an interest in Murray Goulburn aligns well with that,” Droppert says. “They are familiar with the products and well placed to make that investment.”

Droppert says the buy-up was another sign of international interest in Australian dairy products.

“It’s not the first sign.

We’ve seen all sorts of international investment and this is another sign of that.

“The unit trust has been another option for international investors, and it shows there is confidence out there.”

A spokesman for Murray Goulburn says the cooperative was “pleased that high-quality investors have chosen to invest in MG and endorse our strategy.” “Large institutions in Australia, Asia and China have shown strong support.”

The MG Unit Trust will contribute about A$438m though the issue of units; A$62m has been raised via

SIXTH-BIGGEST HOLDER WITH A 4.6% stake, JD.com has become the sixth-biggest holder in the Murray Goulburn Unit Trust behind the Chinese investment company China Resources Ng Fung, which has 4.9%.

A spokesman for JD.com, owned by billionaire businessman Richard Liu, said the investment followed meetings with Murray Goulburn officials.

“The demand in China for imported agricultural products, particularly from Australia which enjoys an outstanding reputation here, is growing rapidly,” the spokesman says.

“We were impressed with the management during our meetings and decided to invest. We sell sub-brands of Murray Goulburn on several of our platforms, including our cross-border JD Worldwide platform and our direct sales channel.

“Devondale long-life milk has seen encouraging growth as Chinese consumers look to buy more imported milk.”

The spokesman would not comment on speculation about further investments in Australian dairy.

shares issued to suppliers.

The new units and shares have started trading on a conditional and deferred settlement basis.

Managing director Gary Helou says: “Many investors share our enthusiasm for creating value

by furthering MG’s strategic shift towards premium value-add dairy foods and reducing our exposure to the volatility of the dairy commodity price cycle.”

MG’s annual results will be announced on August 21.

Murray Goulburn’s Unit Trust has attracted major Chinese buyers.

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DAIRY NEWS AUGUST 11, 2015

20 // WORLD

False botulism scare still haunting sales

Danone is offloading its troubled Dumex infant formula brand in China.

SUDESH KISSUN sudeshk@ruralnews.co.nz

FRENCH DAIRY processor Danone is still feeling the after-effects of Fonterra’s false botu-

lism scare in the Chinese market.

The world’s second largest dairy player says sales of Dumex infant formula has failed to reach pre-2013 levels; it has decided to sell the busi-

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sales. This is because Chinese consumers are buying more foreign-made infant formula due to concerns over the safety of locally produced baby food following health scares.

Danone, which competes globally with Nestle and Unilever, has been rebuilding its position in China after an infant formula product recall in Asia in 2013. It is also battling Fonterra over compensation relating to the recall.

Sales in its early life nutrition business were up, the company says.

“In the Chinese market, the division is seeing a boom in online sales and our Aptamil and Nutrilon brands, generating double-digit growth for European sales.

“Despite this… Dumex brand products remained well below levels of early 2013, hit hard by the false alert raised by Fonterra and by the shift in consumer preferences from supermarkets to online sales and specialised distribution.

“Danone has decided to reallocate resources in this market, and subsequently to revise downward longterm sales projections for Dumex in China.”

Danone chief executive Emmanuel Faber says in China it is strengthening the Early Life Nutrition business, building on the success of its international brands and reinforcing partnerships with Mengniu and Yashili.

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ness to Chinese processor Yashili.

Announcing its 2015 half year results last month, Danone revealed it had struck a preliminary deal to sell Dumex to local partner Yashili International Holdings Ltd and would take a $663 million impairment charge that limited profit growth in the first half.

Danone will use proceeds from the sale, expected to close by yearend, to deepen ties with one of the country’s biggest dairy firms, raising its 9.9% stake in China Mengniu Dairy Co Ltd, Yashili’s indirect parent, by around 2%.

The company says it remains on track to achieve its full-year goals despite a still difficult global economic climate and weak sales of Dumex infant formula.

The company, the world’s largest yoghurt maker, whose brands include Actimel and Activia, posted higher first-half operating profit via cost cutting and lower milk prices.

Its core dairy division is however grappling with weak consumer spending in Europe and Russia; Danone expects the division to stabilise its sales by the end of 2015.

In China, which contributes 7% of group sales, Danone continued to benefit in the first-half from Chinese imports of western European infant milk formula and strong online

Arla’s new front in Asia

0800 665 277 37 or 03 326 6089

EUROPEAN DAIRY co-op Arla Foods last month opened its new Asian regional office in Malaysia.

Danish Crown Prince Frederik was the chief guest at the opening; the Kuala Lumpur facility will be the main office for all of the company’s activities in Asia.

Arla’s senior vice president for the Asian business unit, Jesper Colding, says the new office signals the company’s ambitious plans for the Asian market.

With a population of 2.3 billion, Asia is crucial to Arla’s growth, and the region has a large raw milk deficit and strong demand for dairy products.

China has been a strategic growth market for Arla for many years, and South East Asia has potential to become a new strategic growth market. Hence Arla will first focus on China but will exploit the many similarities between Asian markets.

DAIRY NEWS AUGUST 11, 2015

22 // OPINION RUMINATING

EDITORIAL

Now get back to work

MILKING IT...

Mainlanders’ treat in store

Courage to dangle?

More help to save Earth

A not-so-ill wind

THE WAIT is over for South Island: the chocolate drink that has taken the North Island by storm will soon arrive.

Lewis Road Creamery says it will be in South Island stores from September 2, the same day as it launches two new milk flavours nationwide.

Launched in the North Island last year, the milk drink is a runaway success, riding on a blend of Lewis Road’s whole milk and Whittaker’s five-roll refined Creamy Milk chocolate.

WHEN THE Shanghai Stock Exchange plunged last month, Chinese authorities moved quickly to suspend trade.

With Fonterra’s Global Dairy Trade auction suffering 10 straight price drops some industry leaders are calling for similar radical action in the hope this would arrest the decline in prices.

It might work but the damage to GDT’s reputation as the global benchmark for dairy prices would be tarnished. Are Fonterra directors bold enough for such a move?

A FOOD supplement could reduce cows’ farting and burping by nearly one third and help save the planet.

At least one third of all emissions of methane, a potent greenhouse gas, comes from cows, goats, sheep, etc – ruminant animals.

Over 12 weeks, cattle that consumed the chemical 3NOP also gained 80% more body weight than those given ordinary feed.

The 3NOP (3-nitrooxypropanol) compound was developed by DSM Nutritional Products, a Dutch supplier of feed additives.

The product seems safe and effective.

But note, in cows that ate the supplement there was no decrease in feed intake, fibre digestibility and milk production.

If regulators approved it and farmers began using it this methane inhibitor could cut greenhouse gas emissions from livestock.

RUSSIA’S BAN on the West’s dairy, meat, fruit and vegetables is heaping high the ‘tables’ of that country’s nine million cows.

From last week the cows have been dining on brie, camembert and chorizo -- all foods which fall foul of the ban.

Until now, food found by government inspectors to be from Europe and North America was simply returned to its country of origin.

But now authorities in Russia are planning to turn the produce into “high-protein flour” for livestock. A spokesman for the agricultural safety regulator says meat and dairy products can be used as raw materials for highprotein flour to be added to food for livestock.

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IT’S NOT our preference to kick someone when they are down.

But Fonterra’s appearance at Tauranga District Court relating to six illegal wastewater discharges at its Edgecumbe plant leaves us little choice.

Fonterra and its 10,500 farmers are facing tough times; the diminishing payout is causing anxiety. And at a time when many farmers are vulnerable, the 14-page ruling by Judge Smith will offer them little comfort.

The judge is scathing to say the least and he wants the message to be relayed to Fonterra directors and management.

“When Fonterra, who has taken it upon itself to be responsible for improving farm operations through its farm advisors and audit systems for ecological reasons, is found to have failed to invest in such a basic way, this task is made more difficult and this is a significant disappointment to this court.”

“I hope you will communicate that to the directors and the management team,” he told a Fonterra representative in court.

Fonterra and its farmers are under close scrutiny; most environment groups are watching the dairy industry like hawks. The co-op is blamed for everything from polluting waterways to the high price of milk on supermarket shelves.

This conviction and the strong judgement gives the greenies more ammunition to attack farmers.

Fonterra says as part of an annual audit of irrigation operations at Edgecumbe it identified a list of equipment needing repair or replacement. The work was underway at the time of the discharges and has since been accelerated -- replacing worn and aging irrigators and pipes, strengthening and relocating hydrants, better inspecting irrigation and stormwater systems, and doing more staff training.

Fonterra has accepted the judgement and the $174,000 fine, apologised to the community and its farmers, and said it will not repeat the offences.

Fonterra takes its obligations under the Resource Management Act seriously and acknowledges the need to increase controls on irrigation operations and stormwater systems. It continues investing in these systems and the people that manage them to ensure it meets environmental best practice.

At a time when farmers are under the pump, facing budget blowouts and cashflow issues, the last thing they need is public humiliation. Now let’s see the co-op put this sorry saga behind it and work to quickly regain the top environmental credentials it is known for.

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DAIRY NEWS AUGUST 11, 2015

OPINION // 23

Chicory, plantain can carry you through SNOW CHUBB

THE NORTH Island does not have enough groundwater to irrigate, as does the South Island. Even if it did, given the dairy payout, irrigation is unaffordable.

Planting crops is expensive: spraying out pasture, tilling the soil and drilling in new crops, all cost money and time. Both are in short supply.

In the last seven-eight years in Waikato we have had five droughts. We need to plant pasture species that can thrive without a lot of summer rain. But all this still costs money. In addition, you have to move stock from your pasture paddock to your crop paddock on hot summer days, not enjoyable for stock or farmer.

Three years ago I managed a farm with a history of high nitrogen inputs and years of annual ryegrasses.

There was little clover left and what was left was struggling.

And I observed some years later, while I did a season of planting maize on high input farms, there was almost no clover on these farms. This concerned me because clover contributes $2 billon to New Zealand agriculture every year at a cost of zero.

NZ agriculture has relied on this from the start.

Clover has thrived here and in other countries for 4.6 billion years and now modern agricultural practices have shut it down.

Ryegrass is a cool climate plant; it does not like hot weather. But clover will grow when soil temperatures are 9 degrees plus, and it grows in summer heat.

About 20 years ago, I was in Southern California in mid-summer and as usual it was hot and dry.

Southern California has an annual rainfall of about 225mls, most of it falling in winter. I saw an empty suburban section where the native grasses had grown to about 1m. They had died off for the summer.

It was so dry it would have burnt like a torch. But then I noticed a plant I recognized – chicory, which grows wild in some parts

of America. This lone chicory plant stood about 1.2m high, living off the night dew. I had planted chicory on my dairy farm two years earlier.

Now, given the challenge of low payouts, dry summers, cropping, changing weather patterns and trying to survive in an ever-changing world – here’s what I’ve done over the years to help introduce different pasture species.

My first approach, 20 years ago, was simply sprinkling clover, chicory and plantain seed on top of two truckloads of fertiliser in the spring, which worked really well.

Then 15 years later on a Waikato farm I managed that had high inputs of nitrogen, I spread chicory at 0.5kg, red clover at 2kg, white clover at 1kg and plantain at 1kg. I mixed the seed with calcium and magnesium, and dusted this on the paddock before stock grazed it in mid September, here in Waikato.

If you live in Northland, you could do this early September. If you live in Southland, you could do it mid October. Hopefully the frosts have finished for the season.

Speed up the grazing rotation in the low 20 days for three rotations. Do not graze pasture below 1800kgDM. Watch that the existing pasture does not shade out young seedlings.

This seed mix will cost you about $84/ha. Within two months you will see your farm change to a multispecies crop. This will halve your nitrogen leaching.

Chicory and plantain are high in tannins, a natural anti-bloating agent. It also helps control gut worms. Talk to an old school sheep farmer and he will tell you of putting late lambs on a paddock of dandelions after hay was cut. Within days, the lambs’ bums dry up and they start putting on weight. These old plant species produce tannins for free. The clover will give hundreds of kilograms of natural nitrogen in a plant and animal friendly form for free.

How do you achieve this when money is tight?

Here is an example: a 100ha will cost $8400 (10-15 cull cows) to fund new pasture mix. Chicory will last three-five years under grazing and plantain, given a chance to reseed, will replenish itself.

Waikato has suffered five droughts in the last eight seasons.

Start enjoying what Mother Nature gives you free and stop polluting your most important resource – water.

• Snow Chubb, Cambridge, is a sustainable management consultant.

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DAIRY NEWS AUGUST 11, 2015

24 // AGRIBUSINESS

Dairy women now better helped to develop skills PAM TIPA pamelat@ruralnews.co.nz

DAIRY WOMENS Net-

work (DWN) is a “bottom up” organisation helping women develop skills for community leadership and career development, says chief executive Zelda de Villiers.

It has been doing that for some time but de Villiers says that has now been better defined and developed. Formerly managing director of DeLaval NZ, de Villiers took over as DWN chief in January last year.

“DWN is focused on the business of dairy, inspiring women in the industry at the grass-

roots level. That makes us unique and important in the industry. It is grassroots organisation - so we must never lose sight of supporting and inspiring dairy women on farm.”

Women who join the organisation learn by doing. “They learn practical skills at our courses or by being a volunteer. The leadership development is also often learning by doing.”

The network provides “career opportunities” in a wider sense, she says.

“As a member you come to days, rub shoulders with the other women in similar positions, learn new skills and that provides opportunities. For our volunteers we invest in train-

ing and learning by doing opportunities to build leadership skills.

“Women who volunteer for the conference committee get significant exposure as leaders with developing workshops, liaising with keynote speakers, developing marketing plan or networking to expand and get sponsors for the conference.

That provides great opportunities to develop skills in a number of important business areas.”

Regional convenors develop and facilitate innovative local events not only developing significant learning opportunities for other women, but also developing their own marketing, event man-

agement and networking skills.

“We developed this concept called dairy modules, so women volunteer to help develop a learning module; they make sure the training is geared to what farmers need because they are farmers themselves.

“In the process they part of a cross functional team including subject matter experts led by an experienced project leader.” Commercial partners and DairyNZ often offer specific experts to the teams. DWN volunteers are also taught to be trainers or presenters on these days.

“The leadership development in the process

provides the opportunity of either ploughing those skills back into their business or starting a little business on the side offfarm.

“At times like these that can be important – to have the opportunity to earn off-farm. We have seen this happen with great success.” Or they move on to other community leadership roles.

In the last year the organisation became clearer around the “leadership by doing” concept and the opportunities it can provide for women.

With the conference, regional groups and

module development, up to 140-150 volunteers are involved at any one time.

“We have been doing this for years but now we have verbalised this clearly for the first time, shared it with others and they bought into that.”

De Villiers says she quickly realised when she came into the job that financially DWN needed to expand its partnership model with commercial companies.

“Because I come from a commercial agribusiness background I knew how much skills, knowledge and goodwill there is in commercial compa-

nies and how keen they are to share their skills and knowledge for industry good. I think that we have managed to harness that in a good way. Like SealesWinslow working with us in calf rearing days, or Trutest on automation days or Ballance on nutrient days.

“Commercial companies offer skills and expertise for relationship development and to support the industry not just to sell products or promote the brand. These partnerships have had very good outcomes, for all concerned,” she says. @dairy_news facebook.com/dairynews

Network focusses on social support DAIRY WOMENS Network (DWN) will focus on networking and social events to support its 7600 members through the tough season, says chief executive Zelda de Villiers.

Some women may be returning to sheds or calf rearing barns after not working onfarm in the recent past, she says. Some farms have had to let staff go.

Although the “penny has dropped” on how difficult the season will be, members now have their heads down for calving.

“In the next few months DWN will focus on social and supportive events to get people off-farm to talk to one another and form those effective rural

communities that we know are more resilient at times like this,” she says.

Through the calving period social days are held – sometimes called Moo Moans – where members meet with other women away from the farm.

“Often it’s at the local café, with a cup of coffee and a muffin, and you get off-farm and have the opportunity to talk to other women who are facing the same daily challenges At times it is just what one needs.”

For a number of months people had realised that the season will be tough but after the recent pay out announcements “the penny has really dropped”, de Villiers says.

“There is a huge realisation in the

dairy industry that this is significant and probably prolonged.

“Depending on where you are in the dairy industry you might be impacted differently. If you are at the start of your career, when you have to invest and take decisions that are a bit more risky, you will be higher geared. This is a factor of where you are in your career, not necessarily due to your risk profile.

“Highly geared young farmers will be really impacted. Other farmers have been in the dairy industry for a long time and have seen this before and so they are probably more equipped to deal with it.”

While DWN is a big organisation (7000+ members) it doesn’t have a

huge amount of surplus funding, says de Villiers.

“So our response to the difficult times farmers are currently facing is more grassroots networking, supporting connected communities, providing people with the opportunities to meet up, supporting each other, talking to each other… that is what connected rural communities are all about.

“We are putting our weight fully behind Farming in Tight Times (DairyNZ), the Farmstrong campaign (FMG) and other initiatives geared to supporting farmers.”

DWN will offer training on budgets, starting in October.

Farmers now have their heads down

for a few weeks doing calving, says de Villiers.

“They will come up for breath in October and will need to look at budgets. We will roll out training on budgets, such as understanding the financial impact of the volatile pay-out environment on their farm profitability and financial position and implementing practical timelytimely steps to ride out the tough times.

In October DWN will train its volunteers to help support members.

Pressure on some women to return to onfarm work will diminish their time available for volunteer work, and this will affect DWN, de Villiers acknowledges. – Pam Tipa

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DAIRY NEWS AUGUST 11, 2015

AGRIBUSINESS // 25

New scheme to give farmers better advice FARMERS MAY soon expect to get better advice from dairy farm consultants, says the NZ Institute for Primary Industries Management (NZIPIM), which launched a certification scheme last week at its annual conference in Ashburton.

The Dairy Farm Systems Certification Scheme is the work of DairyNZ, dairy farm systems consultants and NZIPIM, which will develop and test the scheme’s assessment methods and offer training to ensure the material stays current and relevant.

The scheme will recognise and promote the competency of consultants working on DairyNZ’s sustainable milk plans, whole farm assessments and interpretation of DairyBase benchmarking reports.

NZIPIM chief executive

Stephen Macaulay says dairy farmers need to be sure about the advice they receive, especially at this time of “price volatility, and scrutiny by consumers and communities to ensure food is produced to a high standard and sustainably”.

“To become certified, consultants will have to pass a competency assessment in all aspects of farm systems, complete an ethics module, receive positive feedback from farmer clients on their knowledge base and communication skills, and provide evidence of ‘in the field’ work such as whole farm assessments.”

These report on farm systems, identify risks and opportunities and make recommendations in line with a farm’s business strategy.

“The scheme recognises the competency and capability of farm

consultants and provides a level of certainty for [farmers] about the quality of the advice they receive. In time it will give regional councils, banks, accountants and

milk companies greater confidence in making referrals.”

Nine consultants have so far begun their assessment; most practicing consultants will

work to get certified in the next few years. Certified consultants will be named on the NZIPIM’s website and promoted via other industry websites. www.nzipim.co.nz.

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CB NORWOOD Distributors Ltd has become a sponsor of the Ballance Farm Environment Awards (BFEA), run by the New Zealand Farm Environment Trust.

Norwood chief executive Tim Myers says the competition’s vision and values closely match those of CB Norwood. “We wanted to support this valuable initiative for NZ agriculture.”

He says the company has a strong sustainability ethos and environmentally friendly products such as low-emission diesel engines, precision farming technology (such as minimum tillage and advanced seeding) and efficient grassland, forage harvesting and nutrition-feeding practices.

“Sustainability onfarm is a function of various inputs, including farm machinery. We manage our product range to ensure our machinery delivers the most efficient on-farm solution possible to our customers.”

CB Norwood decided to become involved after attending the NZFE Trust’s National Showcase in June, Myers says. “The energy and enthusiasm was incredible, and that is something we want to be part of.”

NZFE Trust chair Simon Saunders says the trust will develop a long-term relationship with the company.

“CB Norwood Distributors is a well-respected NZ agribusiness with a rich history and a strong national footprint, so the trust is delighted to welcome the company as a sponsor.”

Saunders, a Southland farmer, says a farm machinery company as a sponsor is “a good fit” because the increasing use of precision farming technology and lower emission engines are helping to make agricultural and horticultural operations more sustainable.

NZIPIM chief executive Stephen Macaulay.

Talk to your local DeLaval dealer about putting the Plus+ in your farm. Call 0800 222 228 or visit delaval.co.nz

DAIRY NEWS AUGUST 11, 2015

26 // AGRIBUSINESS

Rotary meets all the needs WAIKATO FARMER

Waikato farmer Malcolm Jones.

Malcolm Jones’ 450 crossbred cows were milked three times a day in a herringbone shed until last year.

The shed, on an adjacent family property on the outskirts of Matamata, served two herds, “my brother-in-law’s which went through in the morn-

ing and mine in the evening,” says Jones.

“While this worked well for both of us, it wasn’t sustainable long term and so in 2014 we decided to build a 54-bail rotary on our 150ha farm.”

The existing herringbone was from Waikato Milking Systems (WMS) so the Jones knew the company, its products and service. Jones says WMS sheds are known to be well designed, robust, easy care and don’t need much servicing.

“We wanted to have only one person in the dairy so we opted for a 54-bail Orbit rotary platform with SmartECRs (automatic cup removers) and SmartSpray (teat spraying).

“The new dairy was commissioned in November 2014 and we were pleased with how quickly the cows settled to the rotary platform.

“The new rotary has made a huge difference to the ease of running this farm. The automatic cup removers and automatic teat spraying allowed one person to comfortably milk 450 cows for the balance of the 2014 season and it will easily handle 550 in 2015-16.

“You have high expectations of quality and service when you invest in a new dairy,” Jones says.

“WMS has delivered on both counts: their products are well designed, price competitive and robust.”

Calving raises risk of farm injuries DAIRY FARM injuries rise during calving and Work-

Safe is reminding farmers of the risks posed by livestock and vehicles.

Though relatively few injury-causing incidents occur in June, this number doubles in July and at least doubles again in August, when dairy farmers are more likely to be injured than at any other time.

Most injuries are to the lower back and neck, from being kicked, stood on or bitten by animals, or from muscle strain from lifting or carrying.

Also, uneven ground, sharp objects, motorbikes and quads, and fences or railings are involved in injuries to necks and shoulders. And farmers suffer back and ankle strains and eye injuries.

Al McCone, WorkSafe agriculture manager, says the calving season means dairy farmers are working long hours in the dark, cold and wet.

“Farmers are dealing with stroppy animals and doing lots of lifting and carrying. With this comes a lot of risk. We encourage farmers to think about the things that cause injury during this time and about how to deal with them before they happen. It’s a good idea to ensure everyone on farm does the thinking.

“Check everyone involved is capable of working with cows, or is partnered with someone who has good stock sense and experience. It’s far better to prevent an injury than to cope with the loss of a worker or family member for a few weeks. A worker sent home with a back injury means someone else has to do that job. This could mean hiring extra staff, or getting your existing staff to work longer hours to get the job done.”

People can practise good lifting techniques -- picking up calves, or buckets, or bags of powder. And it is good practice to minimise the distance when carrying heavy loads across uneven ground. People doing the same tasks over and over need to take a break and stretch back, shoulders and neck.

DAIRY NEWS AUGUST 11, 2015

MANAGEMENT // 27

Oz visionary sees dairy nudging out sheep, crops AUSTRALIAN FARMER Travis Thomp-

son has a clear vision for the sheep and cropping country surrounding the dairy farm he manages in the New South Wales Riverina.

He sees opportunity to develop a sizable dairy industry based on the type of large-scale feedlot system more common in parts of the northern hemisphere.

“That model says ‘you don’t have to be the ridgy didge dairy property to milk cows’; it could be any property that houses a cow,” says Thompson.

“There’s opportunity for that and it will happen, because of overseas investment and Australia’s appeal…. We are a pretty big grain belt so grain is available all year and the transport is fairly easy.”

Ample local supply of grain and strong interest in feedlotting has guided the rapid expansion at Binnowee Dairy overseen by Thompson since he relocated from Victoria three years ago. Stocking has risen from 300 to 650 cows and milk production has doubled on the 1400ha property at Oura, east of Wagga Wagga.

The herd is now 70% Friesian plus Brown Swiss, Jersey and crossbreeds. In

But expanding the dairying is Thompson’s main concern, provided they can acquire more land. “With our 650 cows

Australian farmer Travis Thompson thinks feedlotting is the future for dairy around Wagga Wagga.

it is probably maxed out, so to grow we would look at purchasing some more property and setting up another dairy.”

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three separate herds they produce 5 million L of milk a year averaging 4.2g/L fat and 3.4g/L protein.

Each cow is removed from the milking herd at 218 days pregnant and is put on pasture for five

milk averages 34L/cow.

“We try to feed our best quality feed to our most productive cows,” Thompson says.

In winter the high production herd is fed on pasture once a day and then

wheat.

Lucerne, annual ryegrass and corn are grown on the property with 900 megalitres of irrigation and 530mm average annual rainfall.

Thompson calcu-

“That model says ‘you don’t have to be the ridgy didge dairy property to milk cows’; it could be any property that houses a cow.” weeks.

The dry herd remains steady at about 150 head with calving occurring at an average of 60 a month for the entire year. The remaining 500 head are separated into two groups milked twice a day.

Pregnant cows in milk for at least 200 days are kept in a herd that averages 18L/cow.

A higher performing herd that has done no more than 200 days in

put on a feedpad directly before and after milking.

In the summer cows are fed mostly on the feed pad.

“We’ve changed our thinking a couple of times on feedlotting cows but we use the feedpad quite a bit,” Thompson says. “We may go 100% feedlot and grow as much feed as we can then feed it to them there.”

The feedpad mix is citrus pulp, corn silage, oat, hay, canola meal and

lates feed costs fluctuate between A20-26 cents/L of milk produced.

“The cost of milk production here is obviously higher than in Victoria,” he says. “If you’re a pasture based dairy farm [you will produce milk cheaper than we do] and we can’t grow pasture at certain times of the year so we’ve got to grow crops and feed them on a feed pad.”

The farm’s rapid expansion is prompted partly by

a desire to offset the risk of dairy farming in a region with just one processor -Fonterra’s Wagga Wagga fresh milk factory.

“We’d like to have a bit of pull: if a milk processor wants your milk and you can produce up to 10 million L you would think you would be wanted,” says Thompson. “And… we have to make enough milk and money to be profitable.”

With Thompson as manager are four fulltime staff. The farm is jointly owned by two families more or less involved in running things.

The farm also runs some beef. Bull calves are kept and grown to 400500kg then sold to an abattoir. The annual sale of up to 200 grown Friesian steers allows the business to capitalise when the beef price is strong.

121674

LOGUE 2015 FARMER’S CATA NEW ZEALAND

April 2016 01 May 2015 to 30 Twenty Fifth Edition

CONTENTS

Pages ...2-15 Calving & Rearing .............

-23 Dairy & Beef ......................16 .....24-36 Milking .......................... .....37-47 Hoofcare Large Animal ....48-50 Marking & Identification 59 Drenching & Injecting ........51.....60-68 Sheep & Goats .............

-77 Pig & Poultry......................69 78-85 Grooming & Show .............

6-97 Companion Animal ............8 15 Home & Farm ..................98-1 INDEX AT BACK

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DAIRY NEWS AUGUST 11, 2015

MANAGEMENT // 29

Lower nutrient losses from wintergrazed crops GRAZED WINTER

forage crops raise the risk of nutrient losses to water, but with careful management, sediment and phosphorus losses can be reduced during grazing.

This showed up in AgResearch trials in South Otago as part of the Pastoral 21 project.

DairyNZ developer Maitland Manning says strategic grazing and careful management of wet areas such as gullies and swales in winter forage crops can reduce losses of sediment and phosphorus (P) to surface runoff by 80-90%.

“Gullies and swales are where overland flow and seepage converge to form small channels of running water, which may then flow to streams and rivers. By minimising stock movements and soil treading damage in these areas, any rainfall and runoff that occurs is more likely to infiltrate the soil, reducing the amount of runoff and loss of sediment and P,” says Manning.

“Simple changes in grazing management of winter crops can result in huge benefits for farmers as well as the environment.”

Strategic grazing means letting cows graze the drier parts of

the paddock first and the wetter parts last.

This usually means the cows start at the top of the catchment and graze their way downhill towards the gully or swale. The uneaten crop acts as a buffer to minimise the runoff risk.

“If it needs to be grazed at all, the break nearest the gully or swale should be grazed at a time when the soil moisture content is not too high.

“Back-fencing as much as possible will minimise soil pugging and compaction damage, and will also help reduce volumes of surface runoff,” says Manning.

Southland farmer Geoff Baldwin says he has noticed an improvement in sediment runoff since he made changes to the way he winters his stock on swedes and kale at his Riverton property.

“Wintering can be a mission here with wet soil, so anything we can do to mitigate sediment losses is beneficial.

“We have identified and fenced off swales and we leave a three-four metre boundary along the fenceline which is kept in grass and not ploughed. Sediment is washed into the swales and settles in the grass, so sediment from the

REDUCING SURFACE RUNOFFS Work out a grazing strategy before putting up fences. Think about stock water sources, i.e. do you need portable troughs?

Use a winter crop calculator dairynz.co.nz/ wintercropcalc to work out feed requirements to achieve body condition score (BCS) targets at calving.

Ensure cows begin grazing the least risky parts of the paddock first to minimise the period of runoff risk. This usually means that cows should enter at the top of the paddock and graze their way downhill.

On-off graze any crop left in the gully or swale at a time when soil moisture content is not too high.

Fence gullies or swales to provide a buffer zone.

crop is reduced. We always graze the crop in front of the cows so the

swale is the last place the cows get to.” www.dairynz.co.nz/p21

Trials suggest winter management can cut runoff losses.

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DAIRY NEWS AUGUST 11, 2015

30 // MANAGEMENT

Environment work o Farmer Colin Guyton didn’t receive a milk cheque last month – the first time since he started farming.

PETER BURKE peterb@ruralnews.co.nz

THE LOW payout

doesn’t necessarily mean dairy farmers will stop work on environmental projects on their farms.

That’s the view of Reporoa dairy farmer Colin Guyton who believes that many things can be done at no cost whatsoever.

Guyton, chair of Federated Farmers dairy section for Rotorua/ Taupo, has, apart from a spell as a policeman, spent his life on his parents’ dairy farm and now owns his own

dairy farm, 2km from Fonterra’s Reporoa factory beside the Waikato River.

In this sensitive catchment, in the spotlight, Guyton and his wife Shelley are

committed to running a sustainably profitable farm. He disputes the idea that the present

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Colin Guyton believes Fonterra should be producing the right amount of milk for the right profitability.

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COLIN GUYTON says for the first time since he’s been farming he didn’t receive a milk cheque in July, in common with almost everybody and a cause of stress and concern.

Dairy farmers must now keep an eye on others because some are vulnerable and may need help, he says. All the news he hears is negative.

“There hasn’t been a lot of positive stuff. All we get is negative stuff at the moment, some about how long this downturn will last. You hear rumours that interest rates will fall and that would be a positive move. My gut feeling is they will come down more

but it’s still going to be pretty tight. [We have to] sharpen our pencils over costs, which were getting a bit out of hand.”

Guyton says New Zealand farmers were the envy of the world with their low cost production. But he and many others installing feeding systems now have higher costs.

He’s not sure what effect the present low payout will have on the dairy industry, noting that a sudden upsurge in the GDT price could see people go back to the status quo.

“But I think Fonterra’s policy on growth growth growth may be wrong. We need to be producing the right

amount of milk for the right profitability.

“Fonterra slightly led us astray…. I’m not suggesting this was deliberate but we were told China is growing and there’s huge gap with no milk and the next ten years will be great. All of sudden we have a milk lake they should have been able to see coming.”

But Guyton is complementary about the response and communication he’s received from Fonterra on issues he’s raised with chairman John Wilson, who personally emailed a response to him and arranged for someone from Fonterra to talk to him.

DAIRY NEWS AUGUST 11, 2015

MANAGEMENT // 31

k on despite downturn economic struggles of the dairy industry will cause farmers to pull the plug on spending on environmental work.

“While there may be the odd farmer who says that, in reality there are things we can do that don’t cost money: lowering our stocking rate, better utilisation of pasture to avoid feeding PKE, etc. There is truth in the saying ‘it’s easier to be green when we are in the black’, but that’s not to say that farmers haven’t done a lot over time and will continue to do so.”

Farmers in upper Waikato catchment are waiting to learn from Environment Waikato what new rules they will face on N leaching. Guyton and others in the EW region are watching what is happening in Rotorua where Environment Bay of Plenty is imposing new rules making some farmers unhappy.

Guyton hopes his stakeholder group will influence the outcome in his area. “We hope the decisions will be sensible, to keep farming profitable and help the river. [That would be] the best outcome. We want both.”

He says he’s been told by DairyNZ that 647 sustainable plans have been completed in the Waikato catchment, probably covering most farms, he says. And farmers have taken “5932 actions” aimed at improving their farm

environment, debunking the unfair notion that farmers are doing nothing.

“Most farmers in fact have done a lot and spent a lot of money to try to do something positive.

We are trying to get ahead of the rules and do something positive. We are better off to frontfoot the regulations than be told what to do.”

Guyton was born on his parents’ dairy farm at Reporoa and did all his schooling there.

After his ten years in the police his parents offered him a sharemilking role on their farm which he took.

In 2002 he and Shelley bought their own farm.

They milk 560 Friesian cows on 218ha and last year produced 242,000kgMS. They also have a 65ha (eff ) run-off on which they winter their stock and produce grass silage in summer. They milk in a 44-aside herringbone shed. Guyton this year has employed a contract milker so as to devote time to Federated Farmers work.

Guytons joined the Tomorrows Farms Today project to benchmark themselves against other farmers, to see how they perform in profits the environment. They do well, he says.

“The main thing we did was reduce our stocking rate which is relatively low at 2.6/ ha and we used less than 80 units of N. We are also keeping fewer Farm assistant Taylor McDonald.

replacements which is an environment gain.”

The farm operates as ‘system three’ and last year about 82% of its feed was grass. He uses some PKE but says the low payout may change that.

Also of concern to dairy farmers in his region are the new

health and safety regulations, thought to be made by people in Wellington who don’t necessarily understand the local circumstances of farmers. He hopes the bureaucrats in Wellington will listen to what’s being said in the provinces.

Dairy farmers are not stopping work on environmental projects despite the downturn.

DAIRY NEWS AUGUST 11, 2015

32 // ANIMAL HEALTH

Calving – prime time for mastitis

Most new mastitis infections in the calving period are likely to be environmental.

ROD DYSON

FOR COWS, the calving

period (2 weeks before calving until 2 weeks after) is the highest risk period for new mastitis

infections, and wet conditions significantly increase that risk.

Most new mastitis infections in this calving period are likely to be environmental (commonly Strep

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uberis), and for this infection to occur, the teat must come into contact with contaminated material (generally mud and/or faeces).

The cow’s natural defence mechanisms are already compromised in freshly calved cows and heifers by swollen, hard teats, and are then further compromised in wet conditions by mud and faeces on these teats.

While working with our clients to develop strategies to reduce this risk, two key risk elements have cropped up regularly that we think are worth thinking about on any farm.

1. Hygiene at the first milking While pre-milking teat preparation is not routinely used in most Australian herds, there is good evidence that targeted use can be of significant benefit.

One such case is in freshly calved cows and heifers, especially in wet, muddy conditions.

Washing and drying all fresh cows’ and heifers’ teats at the first milking achieves several goals: Removal of contamination from the teat surface before milking.

The washing action contributes to much better “let down” in both cows and heifers.

Post milking teat spray will be better able to contact and kill bacteria on the teat surface immediately after milking.

The emollient in your teat disinfectant will be able to get direct contact with teat skin to aid skin condition in these fresh cows and heifers with sensitive, swollen skin.

Drying teats after washing is very important, because cups going onto wet teats will likely lead to cup crawl and teat congestion – just what we don’t want!

This short routine will take less than a minute for most cows, yet will result in these fresh cows milking quicker and cleaner, and will also substantially reduce the

risk of infection.

2. Milking routine If you milk fresh cows “on the bucket”, then unless your dairy is already a low line, you will have “converted” it to a low line for these cows.

This means you will be milking them at a higher vacuum than normal often significantly higher.

We recently measured the difference in one dairy, where cows “on the bucket” had a mean claw vacuum more than 8 kPa higher than cows being milked normally. We see a difference of up to 6 kPa quite commonly.

Which cows would you least like to milk at a much higher vacuum than normal?

The fresh cows and heifers, of course.

Two options to consider are: Milk these cows last in the normal fashion (i.e. without “the bucket”) when the vat has been disconnected. Flush and disinfect the cluster after the main milking and prior to cupping up a fresh cow.

As a compromise, if you do use “the bucket”, make very sure that you do not over-milk these cows. Don’t wander off to do other jobs whilst they are milking – stay close enough to remove cups as soon as they have finished.

While these practices are relatively simple to implement, there are likely to be a number of other factors that could also be significantly increasing the risk of mastitis at and after calving on your farm.

Speak to your vet/ mastitis adviser about a detailed management strategy for mastitis control at calving. It is likely to cost less than one typical clinical case of mastitis – and preventing at least one case shouldn’t be hard to achieve.

• Rod Dyson is principal veterinary consultant and team leader of Australian consultants, Dairy Focus, based in Tongala Victoria. @dairy_news facebook.com/dairynews

DAIRY NEWS AUGUST 11, 2015

ANIMAL HEALTH // 33

For hoof health and increased immunity…

Tim Horsbrugh, Zoetis (left) with Glen McKay, Milligans.

‘Hidden’ calf disease easily managed Deccox included, like Milligans Classic milk powder. CMR’s containing Deccox will prevent coccidiosis during the prewean stage.”

Milligans North Island regional manager Glen McKay says, “The price of bagged CMR has this year dropped under the whole milk price. Based on a $5.25 payout, whole milk will cost about 45cents/L to feed to calves and premium milk powders will be down to 42c/L.” Once calves are close to weaning they should be eating close to 1kg meal/day, Horsbrugh says.

“If the meal contains a coccidiostat like Bovatec 20CC these calves can be comfortably weaned off milk and will remain protected from coccidiosis post weaning.”

Farmers feeding whole milk can work out how much is being fed each day and add Deccox soluble premix daily to this ration.

“This cost of 5-7c/calf/day for Deccox is [cheaper], by preventing coccidiosis, than the cost of treating sickly calves that have lost live weight.”

Deccox is a broad spectrum anti-protozoal, non antibiotic feed additive containing Decoquinate. It is sold in 1kg containers at rural outlets and vet clinics. A 1kg container will treat 100 calves at 40kg for 25 days.

Reduce teat care costs MILK QUALITY company FIL says its

new teat spray calculator can cut up to 50% of the cost of teat spraying per cow.

And it is more effective.

National sales manager Colin May says many farmers are spending too much on teat spray – $20-25/cow annually.

“That’s extremely high and [usually a cost of] an automatic teat spray system.

Managed well, an automatic system should average $12-13/cow.

“Manual teat spray costs should average only $7/cow.

“FIL’s new teatspray calculator… can help farmers manage cost, while matching mix rates to climatic challenges, making more effective and economical

any teat spray programme.

May says the annual cost of teat spray divided by the number of cows will quickly show the cost per cow.

“Cost per cow is based on dilution rates and application rates…. The calculator quickly works out how much active ingredient is being applied per cow and its cost.”

The calculator breaks the year into three periods, enabling FIL area managers to cost out mixes for farmers to account for climatic challenges in the different periods of the year. It also helps to economise use rates and get better results by, for example, adding a teat conditioner.

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alent diseases affecting calves in New Zealand, says animal health company Zoetis.

It is a ‘hidden’ cause of slow growth, poor development and sometimes even death; very few infections ever show clinical symptoms, the company says. But it can be managed.

Transmission of coccidia occurs when stock ingest the parasite eggs (oocysts) from contaminated water, feed, bedding and pasture. Oocysts are hardy, surviving in the environment, including calf pens, for a long time.

Clinical signs of Coccidiosis are poor appetite and reduced feed intake, watery diarrhoea, and blood and/or mucus in the faeces. “Coccidiosis both pre- and post weaning can dramatically reduce calves’ ability to utilise feed effectively, resulting in poor weight gains and wasting heifers,” says Zoetis spokesman Tim Horsbrugh.

“The problem is 95% of these infections result in no visible signs of illness, so farmers may not see ‘sick’ calves even though calves will not be growing as they should be.”

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DAIRY NEWS AUGUST 11, 2015

34 // ANIMAL HEALTH

Concerns over new national TB plan PAM TIPA pamelat@ruralnews.co.nz

WAIKATO REGIONAL

Council (WRC) says it is concerned that proposed changes to the national plan for managing tuberculosis (TB) in cows don’t pay enough attention to the possibility of the disease being transported into the region.

Comments arose as the council finalized a submission on the proposed changes.

Speaking afterwards, chief executive Vaughan

Payne said the council recently extended for another year its rate collection for OSPRI, which manages bovine TBrelated possum eradication.

“Yet the proposed changes to the national plan suggest a greater focus on [killing pests] in areas known to have TB, rather than continuing [eradication] in a wider range of areas,” says Payne.

“The council sees a high likelihood this approach will result in a withdrawal of OSPRI pest

[kills]… north of Taupo.”

The submission also reflected farmers’ belief that TB was not prevalent in the region and that outbreaks may be the result of infected stock being trucked into or through the region.

Much more effort needs to go into making sure stock trucking is not putting Waikato at risk of TB, Payne says.

“An effective national TB pest management strategy is vital… to limit production losses and the associated [costs] of the disease on our cattle and

Waikato Regional Council and OSPRI are at loggerheads over the national TB plan.

deer industries.”

Peter Alsop, OSPRI group manager, told Dairy News they are talking with WRC about their recent comments on the TB plan review and pest eradication in their region.

OSPRI will keep at pest eradication in Waikato during 2015-16, and

appreciates the council’s funding on behalf of landowners, Alsop says.

“The outcomes of the review of the TB plan… are not yet decided. Consultation… closed on July 31 and feedback is now being assessed by the plan governance group (PGG)….

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longer be asked to [pay] on behalf of landowners from July 1, 2016…. The council’s [payment under] the current plan is only for the 2015-16 year.”

GOOD NURSING care is the key to successfully treating a downer cow and having her return to your milking herd.

Australian Downer cow expert and practicing veterinarian, Dr Phil Poulton, advised farmers at a series of animal health sessions run by DairyTas in Tasmania last month, how to get the best results from nursing a downer cow.

Poulton has spent many years researching which practices provide the best outcomes for downer cows.

“Nursing a downer cow is quite labour intensive and time consuming, however good nursing practices dramatically increase the chance of your downer cow returning to the milking herd,” he said.

Poulton who has just completed his PhD on downer cow management, said best management practice for a downer cow involves a multi-pronged approach with good sheltered housing for the cow, the use of 4 in 1 and anti-inflammatory drugs, as appropriate and a lot of TLC (tender loving care).

Poulton has learnt over the years that once cows are down for any reason they are very susceptible to secondary damage, which is often the reason that they don’t recover.

Excellent nursing care is vital to increase the chance of recovering from the primary cause and reduce the chance of secondary damage occurring.

Downer cows are an important animal welfare issue from the individual cow perspective but also for the industry as a whole so it is vital that all stakeholders manage them utilising ‘best practice’.

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DAIRY NEWS AUGUST 11, 2015

ANIMAL HEALTH // 35

Phosphorus vital for health TRINA PARKER

PHOSPHORUS, VITAL in maintaining

optimum animal health, is commonly overlooked

by New Zealand farmers, though they display good understanding of the benefits of mineral and vitamin supplementation.

Phosphorus accounts for 30% of the mineral component of the animal and is essential for growth, energy, bone development, blood formation and nutrient metabolism. Phosphorus leaves the farm ‘on the tanker’ every day, so it needs to be replaced effectively.

Deficiency has negative effects on animal performance, fertility and bone mineralisation, causing reduced feed intake, poor growth and milk production, reduced fertility and impaired digestion.

And it causes ‘creeper cows’ – cows down but alert (unlike milk fever where they are sleepy) and perhaps showing red urine if post parturient haemoglobinuria (PPH) develops. These cows won’t respond completely to intravenous calcium/ magnesium injections; phosphorus seems to be the only way to get them up and stay up.

Phosphorus is a hot topic. Farmers seem to be encountering more metabolic issues than ever, and ‘creeper cows’ is a common condition. There’s an obvious trend emerging in various regions and feeding systems. Clinical symptoms also appear to be ‘sudden’, between one year and the next.

Phosphorus ‘awareness’ is rapidly spreading, although diagnosis, prevention and treatment options have been limited until now.

To save a lot of stress, unproductive time and treatment costs, and to avoid unproductive animals, the focus now needs to move quickly to prevention from cure.

Fodder beet Traditionally, phosphorus has been taken up from the soil into the grass, but changing fertiliser and feeding practices mean

farmers can no longer rely on adequate phosphorus levels being fed.

Depending on the proportion of the diet, whole crop cereal silages (maize, barley, cereal straw) may not provide adequate phosphorus levels. In particular, the sharp rise in the use of fodder beet as a winter feed crop (and increasingly through milking) is cause for concern.

On the positive side, fodder beet has high yields, high energy content and low cost ($/kg DM), yet it offers one of the lowest concentrations of phosphorus in any feed delivered in NZ; so mineral deficiencies must be identified to avoid serious metabolic issues.

Spotting deficiency Cows deficient in phosphorus may try to get it by eating soil and rocks (known as pica).

Diagnosing phosphorus deficiency can be problematic because of the animal’s ability to regulate minerals from the bones. A low phosphorus blood level is often the last stop before the deficiency is critical. It’s the hard-todiagnose sub-clinical symptoms that are often missed, which is why our company encourages farmers to be aware and ask questions where phosphorus is concerned.

Prevention Until recently, the only practical way to supplement phosphorus for dairy cows grazing fodder beet has been DCP (di calcium phosphate).

This is high in calcium (24%) yet offers a lower level of phosphorus (18%) compared to calcium.

But the availability of phosphorus from DCP is variable, and highly dependent on the quality, manufacturing process and source of the product. Another downside of feeding DCP is its high cost as a source of calcium (often problematic precalving), especially where limestone is readily available and used postcalving.

In Australia and Europe, phosphorus supplementation is well-

understood and widely practiced. Fortunately, products developed and proven in these countries are now available for the first time in New Zealand.

BEC Feed Solutions’ products Bolifor MGP+ (magnesium phosphate), in lick blocks, provides a rich and available phosphorus source for

grazing cattle, and this is the easiest way to supplement herds while they are on crops.

Unlike DCP, Bolifor MGP+ boosts the phosphorus in cows’ diets without added calcium pre-calving (which needs to be managed carefully), and it contains significant levels of magnesium.

ZOE10869 Ultravac 7in1 - Dairy News - 28x5 R01.indd 1

These products are formulated to mix into daily feed rations, or basic feed blends, making them suited to many systems including mineral dispensers. www.becfeedsolutions. co.nz

• Trina Parker is country manager for BEC Feed Solutions.

Trina Parker, BEC Feeds.

5/08/15 10:09 am

DAIRY NEWS AUGUST 11, 2015

36 // MACHINERY & PRODUCTS

No-cups rotary milks 400 cows in two hours MARK DANIEL markd@ruralnews.co.nz

THE WORLD’S first fully automated rotary platform, with 40 milking stalls, needs no routine ‘cups-on’.

Launched recently by GEA Technology at Teichroda, south-east Germany, the Dairy Pro Q is described by GEA spokesman Steve Pretz “as a game changer”. Four prototypes are running in Germany and two in Canada.

Says Pretz, “With customers seeking efficiency and profitability, bringing young people into agri-

culture needed a change in mindset from ‘live to work’ to ‘work to live’ and needed to be attractive and exciting; we believe automation is the key.”

The new unit has 40 stalls each with a robotic arm. Cows are brought into the collecting yard, and enter the rotary platform in the normal manner before the technology takes over.

Teats are cleaned and dried, fore-milk stripped and are post dipped within the liner.

One employee is responsible for overseeing the robot and attaching any liners that need to be fitted manually. The

system currently milks 400 Holsteins in around two hours.

The platform is running on the Blottner family farm (1740ha) which also stocks pigs, beef, fowl and deer. They sought less dependence on labour, consistency of milking and improved efficiency by increasing production.

Using automation increases efficiency without relying on staff, cows are stimulated properly for rapid milk let-down, teats are accurately dipped and the performance never waivers.

The system has already shown tangible benefits:

GEA says its Dairy Pro Q is a game changer.

production is up on average from 8kg/cow/day to 33kg; high yielders are topping 42kg. And somatic cell counts are down from 260,000 to 90,000, partly attributed to the cows being housed in a new building.

From a service perspective, the system allows individual stalls to be closed off if any faults are found, the milking con-

tinuing in the remaining stalls and the offending unit quickly removed for repair off-site.

Units are available from 20 to 80 stalls, and with capacities of 120 to 400 cows per hour, so there should be a system to suit most enterprises, GEA says.

Each robotic arm is much cheaper than a single stall robotic system.

www.gea.com

Each of the 40 stalls has a robotic arm.

DAIRY NEWS AUGUST 11, 2015

MACHINERY & PRODUCTS // 37

Making muck moving more manageable WITH LEGISLATION

highlighting that farm yard manure (FYM) needs to be dealt with properly comes rising understanding of the value of returning organic matter and fertiliser to land.

Hence importers marketing products from Europe, where understanding and practical knowhow on dealing with FYM have been around for a lot longer.

One such company is CB Norwood, importing the Pichon Muckmaster range from NW France. With a range from 8 to 24m3 there should be

a machine to suit most enterprises, though the 10-12m3 machines (M8M12) are proving the most popular.

A key point of difference is the galvanised frame and body which should result in a long life in this harsh environment.

The body is designed narrow with high sides, allowing a high rear frame with oversize beaters that give a superior spread pattern. The configuration also allows large diameter wheels with less rolling resistance, making fully laden units easier to pull.

A PTO drive from

the tractor directly takes power to the shear bolt protected rear beaters, and the floor chain drive is powered hydraulically with a variable rate motor.

The floor chain is made from 16mm marine grade steel and carries ‘oversized’ 70 x 40mm slats to move product to the rear beaters. Interestingly the

chain is fitted with heavy duty protection plates that allow lime spreading and increase the versatility of the machines.

The package also includes a guillotine style door, with front mounted indicator, in front of the beaters that allows a clear start-up, and controls the flow of looser slurry-type

Pichon muck master.

materials onto the spreading elements.

To aid travelling and operator comfort a sprung drawbar is standard, and commercial grade axles withstand the high loads placed on these machines.

Safety features include a full lighting kit, rotating beacon at the highest point and a hydraulic brak-

ing system. A park brake is included for safe storage when not in use and an access ladder aids entering the body of the machine.

Other features: mudguards, air brakes and flow meters that combine with GPS signals for traceability where required.

Paul Collins, Norwood agriculture manager says,

“When we saw the Pichon Muckmaster we knew it would be a good fit for the NZ market. With the use of galvanised steel and commercial grade axles they are built for the long run”.

Kiwi users will want to put on some deeper ‘greedy’ boards to further increase the capacity.” www.norwood.co.nz

SAME AGAIN PLEASE GAVINS LTD provides a range of agricultural services from its base at Gordonton, north of Hamilton.

With increasing demand for cleaning out herd homes and goat barns, and a general interest in manure spreading, the company bought two Pichon Muckmaster 8 around two years ago.

On the choice of Pichon, Gavins spokesman Ron Voschezang says they “researched the machines available and Pichon caught our eye.

We liked the heavy duty construction and that all the main components were galvanised and bolted up for easy replacement when required”.

“We spoke to a number of users around the country who gave us valuable feedback.

We bought two machines that have worked extremely well, with a great spread pattern in a range of manures, and also able to deal with foreign objects such as stones, rocks and fence posts.

“The only modification for us has been adding man sized ‘greedy’ boards to increase capacity.”

Would they buy the brand again?

“Without a doubt,” says Ron. “They’ve performed well, been reliable and given us good service.”

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DAIRY NEWS AUGUST 11, 2015

38 // MACHINERY & PRODUCTS

Rules tighten on drone use MARK DANIEL markd@ruralnews.co.nz

DRONES’ (UAV) rising popularity has pointed to an inevitable tightening of the rules for their use as they evolve from remote control helicopters to sophisticated work platforms – especially in farming.

This falls to the Civil Aviation Authority (CAA), which until recently had in place Part 101 rules that gave guidelines for safe operation: a maximum operating ceiling of 400ft, flying only during daylight hours and within line of sight, and staying clear of other

aircraft, people and property.

There were also ‘no-fly’ zones such as military areas, schools or within 4km of airports.

As the uses of UAVs have expanded, new rules applied from August 1 to enable operators to move outside the remit of Part 101 while maintaining safety standards.

Part 102 requires operators be certified by the CAA and demonstrate they can identify potential hazards while operating, and maintain the highest safety standards achievable.

The CAA will look case by case at each applicant’s request to operate outside Rule 101 as the requirements

of, say, a Southland farmer wanting to fly over his property after dark will be totally different from a filmmaker wanting to fly over downtown Auckland during the day.

The CAA also recommends talking to landowners about the right to fly over their property, always better with mutual agreement. But if it is not granted, a proposal under Part 102 can be looked at by the CAA. Steve Moore, general manager aviation for the CAA, comments, “the new Part 102 rule will give operators a much greater freedom to fly their machines and ensure the highest standards of aviation are met”.

Spreader takes award FRENCH FARM machinery maker Kuhn has won an AE50 Award from the American Society of Agricultural and Biological Engineers (Asabe) for its Axis 50.1 H EMC W fertiliser spreader.

Features cited were the machine’s ability to precisely regulate and spread a range of fertilisers.

The 50.1 uses patented technologies such as coaxial distribution adjustment (CDA) and electronic mass control (EMC) for regulating and weighing the product: CDA uses a pivoting hopper and contoured outlets to ensure constant flow and the drop point of the product onto the spreading discs; EMC measures load on the spreader discs, and adjusts their speed individually to remain constant.

The machine can hold 30004000L and spread from 18 to 50m width depending on material, and the unique feature of its hydraulically driven spreader discs – maintaining

Kuhn spreader.

their target speed irrespective of tractor engine revs.

The unit has two weigh cells that display the amount of material spread and the weight of fertiliser remaining in the hopper.

Other features include on-themove adjustment of application rates, and adjustment of spread patterns catering for borders or irregu-

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lar field shapes.

The machine is extremely flexible with minimum spread rates as low as 3kg/ha and up to 500kg/minute at speeds of up to 16.5km/h.

Control is via an ISOBUS system that can perform variable rate applications when used with a GPS system. – Mark Daniel www.kuhn.co.nz

DAIRY NEWS AUGUST 11, 2015

MACHINERY & PRODUCTS // 39

Easy does it MARK DANIEL markd@ruralnews.co.nz

WITH THE increase of standoff pads and wintering barns, the amount of slurry being stored for distribution is soaring.

Effluent traditionally spread on paddocks around cowsheds now needs spreading further afield as storage ponds increase in size. Until recently tankers have filled that role, but large volumes have pushed up the time and cost of doing this.

Webbline Agriculture now distributes the Slurry Quip umbilical system developed by Irishman Richard Fitzpatrick, involved there in slurry for 15 years.

Says Webbline sales manager Glen Malcolm, “We could see Slurryquip leading in effluent distribution. In the last 18 months we’ve sold 14 Slurryquip units, with several large contractors achieving outstanding results and performance.”

“Feedback from clients was on the ability move 200-300m3/hour of slurry,

using a Bauer pump, operating at 6.15 bar pressure, which easily outperforms a tanker.”

Slurry Quip offers an optional 7.5 or 9.5m dribble bar which helps reduce losses of N from 80% to 20% versus a standard splash plate system.

This helps reduce odour because less ammonia is lost to atmosphere, it keeps the tractor a lot cleaner and minimises pasture contamination and re-grazing cycles.

Riversdale, Southland, contractor Waimea Contracting bought a system last spring and now can pump up to 2500m using a combination of 6in. supply hose and 5in. delivery hose.

Manager Jason Hawker comments, “Having the ability to pump over a long distance, it allows our clients to get their effluent to areas on farms that were previously uneconomical to reach with a tanker”.

“At 2500m pumping distance over flat terrain, with thick slurry, we still average 120-140m3/hour discharge rate. On the shorter jobs, say, 1000m distance we see 200-

The dribble bar helps reduce N losses and reduces odour.

300m3/hour depending on consistency of the effluent.”

He says clients prefer the system to tankers as they see less damage to gateways and races, which occurs with repetitive movements in the same areas.

Tel. 0800 932 254 www.webbline.co.nz

PASTURE

THE CHEAPEST FORM OF FEED.

‘Peoples tractor’ on debut IF THE workhorses on New Zealand’s paddocks and

boat ramps are an indicator, the humble Massey Ferguson MF 35 was built to last. So it’s no surprise AGCO has launched a new model for the Kenya market.

Offering more mechanisation to the African subcontinent, the MF 35 – ‘the people’s tractor’ – should prove a great choice for first-time owners or those keen to develop existing businesses.

Based on the machine sold in the late 1950s and early 60s, the tractor has a 36hp engine, 6 forward and 2 reverse speeds and a rear lift capacity of 1100kg.

Compact size and manoeuvrability make it ideal for the small plots typical in Kenya’s food cultivation, planting, livestock and tea and coffee enterprises.

Richard Markwell, vice president and managing director of AGCO, noted “the model will be a great fit for this emerging market, and introduce a generation of farmers to mechanisation who probably never thought they would drive a new tractor out of a showroom”.

– Mark Daniel

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DAIRY NEWS AUGUST 11, 2015

40 // TRACTORS & MACHINERY

Getting tractor ballast right MARK DANIEL markd@ruralnews.co.nz

SETTING UP tractors for best performance relies, in large part, on getting the ballasting right, to achieve weight distribution and maximum traction in the paddock, or to create balance, and for safety when using frontloaders.

Loader specialist MX has introduced a modular, progressive ballasting system that should ensure tractors can easily be set up for differing tasks. The base unit uses four base weights 600-1500kg and the facility to add two extra weights of 400kg each to give 12 possible

combinations in the range 600-2300kg.

The system can be used on tractors with Cat 2, 3 and 4 linkages, and rear or front mounting. The base units incorporate MX’s patented quick attach system, with deep arm guides, that allows three point or two point mounting depending on the frequency of removal.

The design ensures the load is distributed throughout the structure; it offers impact resistance and should ensure a long service life.

A red removable indicator for sighting during front mounting attachment enhances the system’s usability.

Optionally the con-

markd@ruralnews.co.nz

PRE-RIPPERS

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Your greatest asset is the soil you farm DON’T DESTROY IT • Independent trial results available •

CONTACT US FOR YOUR LOCAL DEALER

~ SOIL AERATION SPECIALISTS ~ Maitland RD5, Gore • Ph/Fax: 03-207 1837 or 027-628 5695m • www.james-engineering.co.nz

cept also offers a Multibox that fastens to the front of the unit, giving 168L of closed storage space for

tools or medicines. It has purpose-designed holders for chainsaws and shovels, and a drum holder.

www.m-x.co.nz @dairy_news facebook.com/dairynews

Cheaper hot water on tap MARK DANIEL

Drainage and soil aeration pay big dividends.

Best performance in tractors relies on getting the ballast right.

AFTER THE recent cold spell, few dairy farmers will be wondering why they still milk in an open sided shed, exposing them to fickle New Zealand weather.

Cleaning the plant, they dream about getting their hands in hot water, traditionally heated in dairy sheds by electricity. But in the last eight years power prices have doubled.

As an alternative to electricity, or to upgrade an existing plant, look at the Longveld dairy hot water system (DHWS).

This portable, all-in-one gas hot water system incorporates a horizontally mounted and insulated cylinder, a dump tank,

controller, water pump and – the heart of the unit – a Bosch commercial grade gas boiler.

All the components are mounted in a stainless steel frame that comes ready for connection to water and gas. Systems are also available to fit over existing dump tanks or water cylinders.

The nature of the construction – within a stainless steel frame – allows easy removal to new sheds, and it suits to low buildings because of the horizontal cylinder.

Gas fired systems have advantages over electric, not least the potential to save at least 40% in water heating costs, since the plant can heat 600L to 85oC per hour. To do this using electricity would require three cylinders running all day.

A programmable controller

can be set to heat the required volume as many times daily as needed.

An extra bonus is instant hot water (55oC) from a tap – not available with an electrical system; safer when carrying open buckets of water for cleaning or, say, vet procedures.

Capacity range is 400, 600 or 1000L. www.longveld.co.nz

COSTS DROP KAIPARA DAIRY farmers Bruce and Rosie Sandford needed to replace a worn out electrical system and chose a Longveld DHWS. The system cut their water heating costs from $8000 to $4600 – around 46%.

Bruce commented, “the time had come to replace our old system. The Longveld unit takes no more than 35 minutes to heat our 400L to 80oC and the automation makes vat and plant washing a breeze”.

DAIRY NEWS AUGUST 11, 2015

TRACTORS & MACHINERY // 41

Designed and built for the operator MARK DANIEL markd@ruralnews.co.nz

THE FOURTH generation of the Valtra T series offers models of 155-250hp with up to 1000Nm torque – lots of power to take on demanding tasks.

They come in two transmission variants: Versu and Direct.

The Versu models have the AutoTraction automatic clutch function for its powershift transmission which allows shifts automatically by monitoring travel speeds, unlike competitor systems that look at engine speed.

Additional features such as hill-hold and hydraulic assistant, aid the driver during transport and frontloader operation.

The powershift operates with five steps in four gear ranges, plus 10 speeds in the creeper ranges, giving a total of 30 forward and 30 reverse speeds.

The Direct transmission, built in-house by Valtra, offers three driving modes. The default mode is pedal (automatic): the driver sets the target speed with the drive pedal.

In lever mode (automatic) the driver sets the target speed by the drive lever. In manual mode the driver can separately set the engine revs and manage

the driving speed independently with the drive lever.

T series models are powered by AGCO Power engines displacing 6.6 or 7.4L. Exhaust emissions are minimised by a Tier 4 Final, SCR system. Torque is excellent, even at low revs. The SCR system and optimised turbo and engine package results in excellent fuel efficiency and eliminates the need for an exhaust gas recirculation system or diesel particulate filter.

The T174 model comes standard with Valtra’s EcoPower feature. When the driver presses the Eco button the nominal engine speed drops to 1800rpm and torque increases. This reduces fuel consumption by 10%, lowers the noise level and extends engine life. In addition, the Sigma Power feature, standard on all models, increases engine output by 15hp when the PTO is under sufficient load. The transport boost function in turn provides an extra 15hp in the C and D ranges.

The most striking feature of the fourth generation T Series is its new cab – stylish, spacious and quiet. Pillars that curve outwards maximise interior space for the driver and keep the external dimensions compact. The cab is now

20cm wider by the driver’s seat than the previous generation, for plenty of room.

Electrically heated front and rear screens, a front windscreen wiper sweeping 270 degrees, fac-

Valtra T series tractors come with extra power.

tory-fitted parking cameras, LED working and rear lights, and 6m2 of glass offer unsurpassed visibility if optioned. The optional roof window helps when operating a front loader.

A N E W A P P R OAC H T O F U E L EC O N O M Y

More farm apps than you can count WHILE YOUNGSTERS glue their faces to the latest social media apps on their smartphones, remember there are a lot more apps out there with potential to add value to tech-savvy farm businesses.

Case IH’s recently introduced mobile app gives users of the company’s Advanced Farming System (AFS) products access to a plethora of information, explaining the basics and how to get the best from the systems.

The app contains 100 or so tutorials, in PDF or video format, on such topics as installation, set-up and calibration of automated steering systems, and best use of mapping software. More will be added.

Freshly loaded on the system is a guide to the newly launched AFS Connect Telematics function.

The app can be downloaded free for smartphones and tablet PC’s with Android, or from Apple IOS via the normal channels. Search for Case IH AFS Academy.

0800 801 888 | deutzfahr.co.nz

POW0451C

www.caseih.com

The price you pay for a tractor is one thing, the price you pay to operate it is often quite another. By combinin combining legendary fuel economy and innovative engine technology we have had customers who have repo reported savings of up to 15% on diesel consumption. Backing this up in recent independent profi tests, the Deutz-Fahr 630 TTV’s fuel efficiency excelled, proving 11% more fuel efficient than the average of others in its class. To get the full details and to start saving on fuel today visit your nearest Deutz-Fahr dealer.

DAIRY NEWS AUGUST 11, 2015

42 // TRACTORS & MACHINERY

Mowers save time at headlands MARK DANIEL markd@ruralnews.co.nz

CENTRE PIVOT

mowers have a loyal following of farmers who

want to achieve high daily outputs and eliminate ‘dead’ time on headlands when mowing in lands.

Mowing on either side of the tractor cuts headland travelling time by

THE ALL NEW

REAL dEAL

as much as 15%, reduces risk of soil contamination and swath disturbance, and lessens soil compaction.

Two new machines from Kuhn, the 3.1m FC 3160 TCD and the 3.5m FC3560 TCD, use the company’s Gyrodine swivel hitch system to transmit PTO power from the tractor, while ensuring the shaft stays straight, promoting reliability and reduced maintenance.

Available with 540 or 1000rpm input speeds, the unit also allows the tractor to make high speed turns under full power on headlands and get back into work quickly.

The FC series uses the Kuhn Optidisc cutterbar with Fast-Fit knives, combining adjustable suspension and the above headstock to give excellent ground following characteristics. Large diameter wheels ensure stability, particularly on hillsides.

The unit also has an articulated hood which can be set for windrow formation or wide spreading, for greater adaptability. www.kuhn.co.nz

ALL-N SE EW-

Tractors are hitched quickly and safely with Safehitch.

RIES

Safehitch hits the mark THE SIMPLEST ideas can be the most effective, and

MF5600 SERIES | 85 – 120 HP THE ULTIMATE LOADER TRACTOR

Fully integrated loader system from factory Unrivalled visibility due to the steep nose bonnet design and Visio roof option Proven Dyna-4 transmission with Autodrive allows automatic shifting from 1st to 16th gear Unique Power Control Lever for full transmission control on the shuttle

Brake to neutral and shuttle sensitivity adjustment for customised operation Fuel efficient and powerful AGCO POWER engines

CONTACT YOUR LOCAL MF DEALER FOR A REAL DEAL MASSEYFERGUSON.CO.NZ | FREECALL 0800 825 872

MASSEY FERGUSON®, MF®, the triple-triangle logo® is a worldwide brand of AGCO. © 2015

one such item from Ireland bears this out in hitching implements quickly and safely.

Many operators will have discovered, in backing up to an implement, that a lower link slides past the pin on the implement, requiring a repositioning of the tractor, getting off the tractor to reposition the link arm or -- inherently dangerous -- getting someone else to guide the link arms into position.

The Safehitch, designed to solve this problem, was designed by engineer Jim Cassidy and part-time farmer Pat McKenna. The unit comprises a zinc plated bar with an adjustable length that connects both lower links via a set of brackets. A graduated scale on the bar corresponds to the width of the lower link pins on an implement.

For initial setup the operator measures the range of implements to ascertain the lower link spacing, and records this with a number on the headstock, which will match a position on the Safehitch.

In use the operator checks the number on the implement, sets the Safehitch to the same number, then backs up the tractor to hook up first time.

This saves time if frequent implement changes are made during a day, and improves safety: it protects the operator from risk of injury while trying to manhandle a machine into the correct position, and makes it unnecessary to enter the ‘crush zone’ between tractor and implement. And no need to rely on another person during hitching up. www.gethitched.ie

The NexT GeNeraTioN of farm DeTerGeNTs has arriveD. easy To Use, easier oN The eNviroNmeNT.

at ecolab we’ve been taking another big step to reduce our environmental footprint.

In addition to Optimum2, Optimum we have added Aquaklenz HV Concentrate at a low 0.5mls per litre*. All concentrates are now available in 200 litre MEGA packs equivalent of up to 400-600 litres of traditional formulations. Making them easier to handle, easier to store, and reducing the environmental footprint.

Contact one of our 27 Ecolab Territory Managers to find out more about the new concentrated products and a new wash programme.

We work harder so you can work smarter.

NorTh islaND 0508 732 733 | soUTh islaND 0508 737 343 | WWW.ecolab.com *On good water conditions

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Helping grow the country