Dairy News 22 July 2014

Fonterra board to review payout next week. PAGE 6

SEE PAGE 12

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PLEA FOR FEED Submerged farms leave Northland short of feed and grazing paddocks. PAGES 3, 4, 5

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DAIRY NEWS JULY 22, 2014

NEWS  // 3

Feed, grazing highest priority for Northland GARETH GILLATT

FEED, GRAZING and roads are the highest pri-

ority in Northland say farmers and rural support workers after the region was hit with possibly its worst storm in 70 years. The likely repair bill to roads, power lines, fences, milking sheds, hay barns and calf sheds comes in at $80million plus the infrastructure rebuild. Dairy farmers on the Hikurangi Plains, Mangakahia and parts of Tangiteroria still had flooded pastures one week later. Farmers in Hikurangi feared the flood waters could remain for up to two weeks, killing pastures that had just been re-sewn from June floods and destroying their feed reserves. Farmers on plains lost maize silage and supplements at sea level. Most lost access to pasture which Northland Rural Support Trust coordinator Julie Jonker says is the most common way Northland farmers set aside feed for winter. “In most cases winters are so warm in Northland that farmers store feed as pasture. “This has especially been the case this season after farmers needed to use supplements nor-

Aiming to join the elite. PG.28-29

Auto feeder makes it easy. PG.37

Newly-sown pastures and feed reserves have been wiped out by floods.

mally saved for the winter to get through summer droughts.” The flood couldn’t have come at a worse time as most of the region’s farmers are either in the middle of, or had just started, calving, says Jonker. Farmers in flood prone areas were scrambling to contact everybody in their network to secure grazing. Jonker says communities have worked together to find temporary homes for in-milk cows.

Call for grazers

Machinery co-op turns 10. PG.44

THE NORTHLAND branch of the Federated

NEWS ������������������������������������������������������ 3-21 OPINION ���������������������������������������������22-23 AGRIBUSINESS �����������������������������24-27 MANAGEMENT ������������������������������28-30 ANIMAL HEALTH �������������������������� 32-36 CALVING ��������������������������������������������37-40 MACHINERY & PRODUCTS ���������������������������������������41-46

Farmers is asking Northland farmers with available grass to let the Rural Support Trust know. The Northland Provincial Federated Farmers president, Roger Ludbrook spoke at the Kaikohe Sale, July 16, to see if anybody could offer grazing for young stock for those farmers still dealing with flood affected farms. Getting young stock off properties would relieve a lot of pressure and many of the floodaffected would also be likely to be able to pay

for grazing, says Ludbrook. “If anybody has the potential to take on grazing it would really help farmers out. “We are initially trying to find grazing in Northland to cut logistical challenges.” Feds plan to travel to as many other saleyards as possible in Northland this week with Ludbrook suggesting anybody with grazing get in touch with the Northland Rural Support Trust; telephone 0800 787 254 or website www. northland.rural-support.org.nz

As of Thursday last week 100 people had contacted the trust through the hotline with half offering help and half asking for help. Jonker was impressed by how quickly the trust sourced two shiploads of feed from the Eastern Bay of Plenty to Lyttelton. All feed is welcome, especially in places where waters on farms have not receded. Another growing issue was the debris on the farm. Wind has blown down sheds, knocked over trees, leaving farms covered in rubbish while owners are trying to deal with cows and calves. Dairy NZ Northland regional leader Tafi Manjala says Project Green workers would be helpful in relieving stress by clearing debris. “Adrenaline only carries you so far and then it can really bear down on you.” About 5000 ha of farmland was still under water a week later, with a significant part in the Hikurangi plains. Many parts of Northland were hit by multiple heavy dumps of water over the seven-day flood with most severe fall being 100mm of rain that fell on the Hikurangi Plains on Friday, July 11, with more falling at Mangakahia. @dairy_news facebook.com/dairynews

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DAIRY NEWS JULY 22, 2014

4 //  NEWS

Two months of horror on new farm GARETH GILLATT

A NORTHLAND family

has had a horror two months of flooding on a new Hikurangi dairy farm. Geoff and Jo Crawford purchased three Hikurangi properties and combined them into one dairy farm at the start of June, milking 400 cows in a split calving system. With a home farm only 20km from their Hikurangi dairy operation they didn’t go into the business with their eyes closed. But Crawford says nothing could have readied them for the winter they have endured so far. Since setting up the property they have had

plan ahead of time which that didn’t stop some two floods; a smaller neighbours from being flood which left 100ha of they were able to enact. incredibly generous. Crawford started their farm underwater in A neighbour offered June and the most recent calling people in his to take 30 head of dry network to see if any one, which completely stock off his property for dairy farmers had space covered the entire nothing. “I was blown for milking cows. property. away, I had “It’s like only talked being in a race to him once and being “It’s like being in a race but he tripped up at and being tripped up at the before still offered the starting starting line.” space on his line, it’s very farm. hard to win “It’s times the race from like these the community The first called was there.” really pulls together.” The flood hit when the Andrew Kirk, from The couple also run Landcorp, who agreed couple were a quarter of a hilly beef farm where to take 100 cows, before the way through spring they can keep springing calving, with 100 of their shifting another 45 onto and dry cows till they another farm in his cows having calved and calve. operation. more coming in every What is especially The ability to offer day. frustrating for Crawford However, knowing the a loan of other cows as milkers meant that more is he has already propensity of the area to people were likely to take undertaken a massive flood, the couple were regrassing project after careful to develop a flood them says Crawford but

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Geoff Crawford (right) with wife Jo (middle) and daughter Kaiti on their flooded farm.

the last flood event. Crawford undersowed 100ha at a cost of $50,000, an exercise which he says is now completely futile. “At that level my wife and I could have flown business class around the world.” Once floodwaters have dispersed the couple will again regrass and hope to have stock come back to the

property in October or November in an attempt to salvage some of their season. Crawford also hopes to salvage his 150 tonne maize silage crop which is stored in concrete bunkers on the new farm. “If we open that stack up now water would still get in and ruin it. “I also had palm kernel delivered on Friday morning, that’s

probably a total write off.” However, Crawford says the farm will continue to need staff and resources to run. “There are still fixed costs there, like mortgage payments to make, and wages to pay.” “You can’t stop paying people just because you don’t have an income.” @dairy_news facebook.com/dairynews

DAIRY NEWS JULY 22, 2014

NEWS  // 5

Support for stricken farmers THE BANKING and agribusiness sec-

tors are offering support to flood-hit farmers in Northland. ANZ says to meet the short-term needs of farmers, it will offer a capped interest rate at 5.95% for the first 60 days on the additional seasonal limit; this compares to the usual base rate of 8.15%. To get farms back to full production, ANZ would make $10 million in pasture productivity lending available to Northland dairy farmers to help them re-establish damaged pasture. The loan was originally designed to ease the financial barriers to investing in pasture for red meat farmers, says ANZ Bank’s managing director commercial & agri, Graham Turley.

“Given the severe weather impacts in Northland in recent weeks, we will make it available to Northland dairy farmers for the first time,” he says. Ravensdown has donated $20,000 to Rural Support Trust Northland to assist with the distribution of emergency feed and the provision of counselling and advisory services; it is also providing a series of support packages. Ravensdown’s northland regional manager Mike Wilson says the $20,000 donation and the accompanying relief packages are vital, especially when the floods have come on the back of a significant drought earlier in the year. “It has been a very hard year for the Northland rural community and, as a farmer-owned co-operative, we want Aerial view of damaged paddocks. PHOTO: KRYSTAL NEWBY

to help them get back on their feet as quickly as possible,” he says. Dairy farmer Graham Beatty says the floods have been a “kick in the teeth” to the local community and to the farming sector. The one-year-old 44-bale rotary shed on his 350ha farm between Dargaville and Whangarei was knee-deep in water; cows are calving on the surrounding hills to avoid the flooding. “Everything has gone into survival mode,” he says. “We’re feeding out supplementary feed and hoping for the best.” Ravensdown farmers in the Northland region are being offered three relief packages to assist with feed and regrassing options, and help with access to supplementary feed. Wilson says the packages are

Nathan Guy visits Northland.

designed to meet the immediate and medium term needs of those hit by the floods.

“We want to make sure we are able to provide effective support as quickly as possible.”

Govt funding for roads, clean-up GOVERNMENT AND New Zealand

businesses are pulling out the stops to come to the aid of Northland farmers and the rural community. Transport Minister Gerry Brownlee last week announced an injection of capital into the repair of State Highway I. He then promised the Government would fund 90% of Northland flood repairs after prompts by Northland Federated Farmers president Roger Ludbrook. Primary Industries Minister Nathan Guy last week announced on a flooded Hikurangi farm, 30 minutes north-west of Whangarei, that the region would be declared as a medium-scale adverse event. This would make it possible for farmers to apply for tax holidays and open up the potential for Taskforce Green workers to clear debris

from farms and businesses, he says. Northland MP Mike Sabin and Civil Defence Minister Nikki Kaye put $100,000 into a mayor’s fund for the Far North, Kaipara and Whangarei districts which will assist with house repairs for lower decile ratepayers. Fertiliser companies were also doing their bit; Ballance is selling nitrogen rich fertiliser products for $75 a tonne to get reseeding and pasture re-establishment underway. Ludbrook says Westpack Bank has also donated $20,000 towards transport costs with several logistics firms offering their services for free to get feed to cattle in need. “New Zealand’s rural sector is going out of its way to help which is really heartwarming,” Ludbrook told Dairy News.

A flooded dairy shed in Hikurangi.

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DAIRY NEWS JULY 22, 2014

6 //  NEWS

Payout review next week likely ANDREW SWALLOW andrews@ruralnews.co.nz

ANOTHER SHARP drop in dairy markets makes a reduced payout forecast from Fonterra’s board meeting next week less a question of if, but by how much? Analysts say current prices and exchange rates wouldn’t justify $6/ kgMS but currency hedges, forward sales at better values, and the prospect of firmer markets in the second half of the season mean the cooperative won’t go that low yet. Buyer reticence and surging supply was blamed for the 8.9% overall fall on GDT’s auction last week. Fonterra New Zealand product was particularly hard hit, whole milk powder (WMP) falling 10.9% and anhydrous milk fat (AMF) 10%, both exclusively NZ-origin offerings. WMP, which made up 60% of the sale, averaged just US$3080/t, its lowest since September 2012 when the New Zealand dollar was at US80c, compared to US88c last week. Since GDT was launched six years ago, WMP has

only been lower October 2008 to October 2009, April 2012 to September 2012, and for one sale in August 2010. During those periods the dollar ranged US49c73c, US76-82c, and US73c respectively. “The currency will undoubtedly have a big impact in New Zealand terms,” Rabobank senior analyst Hayley Moynihan told Dairy News. She says availability of supply is probably the main reason prices dived again last week as buyers held back bids. “It’s further evidence of sentiment on the buying side that recognises there’s a lot of product available and they can take their time to purchase it and see how low prices will go.” China is still largely “out of the market” having filled order books earlier in the year. Whether or not a more normal buying pattern resumes in September or October will be critical to the outcome of the 2014/15 season, says Moynihan. Weaker prices will slow supply growth and aggregate availability from exporters across the globe is expected to grow at only 1-2% for the second half of the year, back from 5-6%. The exception is the US where Moynihan says a

Fonterra’s skim milk powder still enjoys a US$500 premium over WMP but prices are dropping.

lift in production growth is likely, falling prices for key feeds corn and soy helping offset lower milk prices. Futures market curves suggest the margin of milk income over 16% protein feed costs will stay at or above US$10. “About $8 is the breakeven for most US producers,” she points out. ANZ agri-economist Con Williams also notes “the US has only just started to pump out more milk”, which perhaps

explains the “very unusual” US$500/t premium that’s developed for skim milk powder (SMP) over WMP. However, the 1.5-2% growth in US production now is only in line with the long-term trend so isn’t exceptional, he adds. He too points to the interaction of New Zealand supply and Chinese buying as the main driver for the market shift. Reselling of product from

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traders in China is mopping up some of the “latent demand” of buyers who missed out on orders earlier in the year. The impact of the May 1 infant formula plant approval deadline is also coming to light, as buyers who stock-piled ahead of the deadline to avoid uncertainty of supply now offload product. In terms of EU production, quota restrictions coming off next April is “more of a long-term influence” though the block has been producing a lot more milk in the run-up to that, and in response to high prices. A more immediate concern is what would happen if the EU is shut out of the Russian market which has been taking 21% of its exports. Williams says at last week’s prices and exchange rates even ANZ’s recent payout forecast revision of $6.25/kgMS looks vulnerable. “It would be well below $6/kgMS at the moment. But you’ve got to remember dairy prices are extremely volatile and they can bounce just as hard as they fall.” Fonterra will also have hedged the currency and will be averaging more like US83c/NZ$ on sales rather than last week’s US88c/NZ$ rate, he adds.

DAIRY NEWS JULY 22, 2014

NEWS  // 7

Co-op keeps expansion plans under wraps ANDREW SWALLOW andrews@ruralnews.co.nz

FONTERRA IS keeping its expansion plans close to its chest despite a strong hint from chief executive Theo Spierings recently that there’s something big on the drawing board for the South Island. At the South Island Dairy Event, Spierings said more than $800m is being invested in New Zealand to raise the value of exports and avert last year’s 60-day peak supply problem when Fonterra’s “back was to the wall” with no flexibility in product mix. That $800m “does not include Lichfield” he added, alluding to a consent application for a massive dryer at the Waikato cheese site, or “a possible next step in the South Island” where supply is still growing “very fast and we will come into capacity constraints pretty quickly.” Projects already in progress include $235m on a 2.4m litre/day dryer at Pahiatua, Manawatu, and a $72m expansion of the C21 mozarella plant at Clandeboye, South Canterbury, both due to come online in September 2015.

A milk concentration plant is being built at Longburn, just outside Palmerston North to facilitate transfers from the North Island to the South, and a milk transfer station is going in at Ashburton to consolidate collections for the Darfield and Clandeboye factories. But beyond that, the cooperative isn’t letting on what might be on the table other than to say it is “looking at a range of options in the South Island.” “I’ve no specific comments to make on any particular site other than to say we look at all sites as to what are our future options,” director of New Zealand operations, soon to be managing director global operations, Robert Spurway, told Dairy News. Spurway conceded the cooperative does hold a consent for a fourth dryer at Clandeboye, and has consents in place for expansion at various other plants, but would not go into detail or be drawn on whether another Greenfield development could be on the cards. He’s previously said $400-$500m of capital investment is being “brought forward” over the next three to four years to build capacity ahead of increases in production, including the

Lichfield proposal which is budgeted at about $300m. “We expect that if our plans to expand [Lichfield] were to proceed we’d be looking at building a dryer similar in size to Darfield’s

second dryer, capable of processing up to 4.5 million litres per day.” When Darfield 2 was commissioned in Central Canterbury at the start of last season it was the

largest dryer in the world, just exceeding Southland’s Edendale 4 which came on line September 2009. @dairy_news facebook.com/dairynews

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NORTH AMERICAN analyst Jerry Dryer told Dairy News the growth in US supply is set to continue with corn prices below $4/bushel. “We’re expecting a fairly significant increase in the milk supply in the USA through the end of this year and into the next. Dairying has been very profitable for the past few months and will remain so with corn prices below four dollars. “The supply response will vary by region in the United States, but in total we are forecasting that output will be up between 3% and 4% year-over-year by the fourth quarter of 2014.” Dryer says typically an income over feed cost (IOFC) of US$7 or more triggers expansion. “IOFC has been over $12 for several months. Four dollar corn and $17 per hundredweight milk gives milk producers IOFC of more than $7.” Jerry Dryer is chief market analyst and editor of Madison (Wisconsin) and Delray Beach (Florida) based business Dairy & Food Market Analyst.

Theo Spierings

DAIRY NEWS JULY 22, 2014

8 //  NEWS

Fert co-ops Dam project still hangs in the balance report lift in membership

THE FUTURE of the proposed Ruataniwha dam in Central Hawkes Bay still hangs in the balance. Hawkes Bay Regional Council chairman, Fenton Wilson, has made a plea for farmers in the area to sign up for the scheme. They need to have a commitment for 40 million cubic metres of water from farmers. Once this is achieved, he believes major investors will come on board. But there are still a number of hurdles to overcome. As Dairy News went to press, the deadline for lodging appeals against the scheme had not passed and it was unclear whether there would be any. The Hawkes Bay Regional Council and the Hawkes Bay Regional Investment Company Ltd, which is running the project, have stated they

won’t appeal. Other farming groups have also said they won’t, but there was no final word from environmental groups. The other challenge is investors and recently the Central Hawkes Bay District Council announced it won’t be investing in the scheme. Despite that uncertainty, Wilson believes the final decision handed down by the government appointed Board of Inquiry would enable the scheme to go ahead. He says the final plan saw the ‘dissolved inorganic nitrogen’ (or DIN) limit of point eight changed from a limit to an aspirational target to be achieved by 2030. “So the point eight DIN limit has now become almost a guiding principle and just one of the 40 objectives we have with the plan change. “The issue now is to get a good

healthy in-stream environment and DIN is just one of the measures to get us there. “It’s more about the micro and invertebrate community and its health and well-being rather than just focusing on the DIN,” he says. Wilson says there is also the option for the DIN to be reassessed at some stage in the future. He was also heartened by the Government’s new National Objectives Framework that was recently released. This is designed to set ‘bottom lines’ for water quality in rivers and lakes. Wilson says by these standards the Tukituki catchment is in quite a good state. While the project is challenging he believes there is the head room for intensification in the area serviced by the Ruataniwha Dam. – Peter Burke

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GOOD FARM returns, and possibly

demands for nutrient budgeting services, have seen farmers joining fertiliser cooperatives in unprecedented numbers. Tauranga-based Ballance says it signed nearly 1000 farmers in the year to May31 and Ravensdown is also reporting an upturn in membership. Ballance chairman David Peacocke says the feedback is that its customers like what the cooperative is doing and want to be part of it. “The influx is quite a step change from prior years, and nearly double the amount of new shareholders compared to last year. Interest has certainly picked up and we think this reflects our stable financial performance over recent years and our consistent performance with rebates.” For a “relatively modest” initial outlay shareholders get access to those rebates, effectively reducing fertiliser costs, he says, though rebates are used to fund shares until holdings match purchases. “We have also looked at how we can add more value to being a shareholder as part of our approach to complete farm nutrient management,” says Peacocke. “For example, our shareholders have free access to a base package of our Ag Hub online farm management system including GIS interactive farm mapping, access to farm nutrient budgets, soil tests and fertiliser plan histories, and online ordering for Ballance products.” Ballance shares are currently $8.10. The price is regularly reviewed and the board recommends to shareholders if a revaluation should take place, which has happened three times in the past six years.

David Peacocke

The last increase of 60 cents was voted in by shareholders at the September 2013 annual meeting. Ravensdown chairman John Henderson told Dairy News he didn’t have an exact number of shareholders signed this year but feedback from the allocation committee is that “we’ve had a healthy year for new shareholders too”. “We’re chuffed that people are seeing the value in being part of a cooperative.” Sales of Ravensdown’s Australian ventures have been “quicker and for better value” than anticipated and an increased tonnage has been sold in New Zealand. While figures for the year are unaudited and provisional at this stage, Henderson said profit should be up and shareholders should get a rebate again. Last year was the first time in the company’s 35 year history it failed to do that.

DAIRY NEWS JULY 22, 2014

NEWS  // 9

How has your region cashed in? REGIONAL DAIRY EARNINGS Northland Waikato Bay of Plenty Taranaki

DAIRYNZ CHIEF executive Dr Tim

Mackle says the New Zealand dairy industry has to be competitive at both home and abroad. His comments follow the release of data from DairyNZ that shows in the past year the sector has increased its earnings by 40% to $14.3 billion and the total value of dairying to the New Zealand economy is $17.6 billion. The figures also show some regions have done exceptionally well. Not surprisingly there are big gains in the Waikato and Canterbury but all the others are up as well. The largest dairy producing region is the Waikato followed by Canterbury, Southland and Taranaki. The most notable increases comes from the West Coast, Tasman, Nelson and Marlborough regions which have almost doubled the value of earnings

Estimated 2013-14, payout ($7.85/kgMS) $million

576.43

790.76

2763.55

3800.00

672.66

991.92

1042.03

1442.73

92.06

123.95

477.78

643.31

Wairarapa

351.84

473.73

West Coast-Tasman, Marlborough-Nelson

487.16

841.78

1983.53

2771.48

535.43

727.73

Southland

that some of their most from the sector. Mackle competitive dairies over says dairying is now a there are comparable major industry in those with some of ours. regions. “So that’s something Mackle says the dairy we have to keep our eye industry must make sure on. It’s about having our it gets things right from cake and eating it. And both value added and how we enjoy this great profitability perspectives demand for dairy and and also from an environremain highly competimental point of view. He Tim Mackle tive globally in the way notes the work Fonterra and Tatua are doing to develop new we farm and getting product to conproducts and the support given to the sumers. We must at the same time industry by Primary Growth Partner- address environmental issues,” he says. ship grants. Mackle says dairying is important “There are two pressures. There are other suppliers coming in and to many regions and there is still room there is the pressure we put on our- for growth. But this must be managed selves by adding extra costs. Right so it takes account of the economic, now we are looking at the US export- social and environmental aspirations ing more dairy products and we know of the local communities.

NZIER 2012-13 $million

Manawatu

Otago

Regional cash cow

Value of production

Hawkes Bay

Canterbury Dairying’s benefits have flowed through to all regions, says DairyNZ.

Value of production

Total

1262.26

1715.58

10,244.73

14,322.97

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DAIRY NEWS JULY 22, 2014

10 //  NEWS

Greens water policy ‘pandering to voters’ NEWLY ELECTED Fed-

erated Farmers Dairy chairman Andrew Hoggard says the Greens policy on rivers smacks of pandering to voters and is “pretty unrealistic”. And he accuses the Greens of focusing too heavily on dairying and not enough on the general environment. Decisions about the state of rivers should be left to communities, not imposed on them at a national level, he says. If environmental ‘bottom lines’ are set too high they remove the right of communities to control their own destinies. Some may be happy to have their rivers at a ‘contact recreation’ level rather than a ‘swimming’ level. “The cost of getting a river to ‘swimming’ may be

Andrew Hoggard

too high a burden in rates. I was told by a farmer in Waikato that part of the problem with the Waikato River was the level of arsenic coming from geothermal sources. How is any anyone supposed to remove that if it results from a natural process?” Hoggard says it’s accepted that changes can be made on dairy farms to improve their environmental footprint. Research

done several years ago was based on data from Overseer 5.4, but now that Overseer 6 is the accepted model, the previous data is out-of-date. Now an accurate picture is needed of dairy farmers’ situation regarding the environment, to find out what is achievable. Hoggard favours a catchment-by-catchment approach and says every catchment and commu-

Large-scale water storage needed

nity is unique and need their own specific solutions. He points to his own particular situation. “Oroua River at the bottom of my farm is swimmable. But on the same river south of Feilding’s sewage discharge you probably wouldn’t want to swim. Feilding is making efforts to clean that up. But if the policy were to come in that said you must have swimmable water for the length of the river there would be a high cost to the Feilding community. Would they want to swim below the town or would they rather do their swimming above the town?” Hoggard says it’s not a decision for someone in a leafy suburb in Auckland who has probably never visited the Manawatu.

IRRIGATION NEW Zealand (INZ)

says there is some merit in the Green Party’s environmental policy relating to water but is concerned about its economic and social impacts. INZ also questions how the Green Party will achieve its outcomes. It agrees dams must not be built on New Zealand’s pristine rivers and where possible new dams should be located off-river. It also agrees ‘no go’ areas should be identified. But INZ does not agree dams and irrigation destroy rivers or add to pollution if they are designed and constructed properly. “The reality is New Zealand needs large-scale water storage. This is essential for town and city drinking water supplies, as well as to produce fresh food,” says Andrew Curtis, chief executive of INZ. “Without water storage we would have to explore other expensive options to cope with population growth. These might include intense food price hikes, importing fresh produce and building

desalination plants. “Irrigation schemes are also key to fixing up problems of the past by storing high winter flows and using these for irrigation during the summer which prevents rivers being impacted by irrigation takes,” says Curtis. INZ agrees with the Green’s proposed collaborative approach to setting water policy, but INZ says New Zealand must realise the complexity of its water issues. “The government’s NPS is actually one of the toughest pieces of environmental legislation anywhere in the developed world and people need to understand the legislation in detail,” says Curtis. “The NPS policy states that river water quality in New Zealand cannot get worse and it provides a minimum level for rivers in a poor state to reach. “I is unrealistic and prohibitively expensive to have swimmable rivers everywhere – particularly in towns and cities where water quality is by far the worst,” Curtis says.

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NEWS  // 11

Govt sees red over Greens policy PETER BURKE peterb@ruralnews.co.nz

ENVIRONMENT MINISTER Amy Adams has

lashed out at the Green Party’s environment policy, labelling it “a nonsense”. She told Dairy News the Greens’ ideas are “simply not viable”. In announcing their policy recently on the banks of the Waikato River, Greens co-leader Russell Norman claimed a crisis is unfolding over New Zealand rivers and that inten-

sive dairy farming and rising cow numbers have been the driving force of their deterioration for ten years. Every dairy cow produces 14 times more waste than a human, he says, therefore 500,000 extra cows equates to seven million people doing their thing directly onto our rural land. Norman also pointed to rising fertiliser use adding to pollution run-off into streams and rivers. But Adams says it’s well known the Green party

hates farming – dairy farming in particular. She says she finds this hypocritical because they are happy to spend the money those industries earn for New Zealand. “The reality is that the most polluted waterways in New Zealand are urban and… the whole of society has to take responsibility for their share of water quality. To suggest it is all the fault of one sector is, frankly, unacceptable ste-

reotyping and an unjustified attack on farmers who are doing a good job to reduce their environmental footprint.” Adams points out New Zealand has 425,000km of rivers and waterways and to suggest every centimetre of every drainage ditch should be maintained as if it’s a swimming pool will impose a massive cost on consumers, councils and the community. “That would cause the

loss of potentially thousands of jobs and billions of dollars in value to New Zealand. So if any individual community should decide their waterway is something they want to swim in then that is appropriate. But to have a blanket imposition handed down from on high in Wellington that every centimetre of waterway in the country must be maintained as a swimming pool is nonsense.”

Environment Minister Amy Adams describes the policy as “a nonsense”.

URBAN DWELLERS ALSO TO BLAME LABOUR’S PRIMARY industries spokesperson Damien O’Connor says dairying is an easy target and a more “sophisticated conversation” is needed on this issue. “The region with the worst quality water is Auckland. The liberal urban voters need to appreciate they too are contributing big-time to water degradation. [But] the dairy industry would be stupid to ignore the increasing scrutiny of their operations and their impact on waterways.” O’Connor says the Greens policy is an “objective every New Zealander would want for our waterways”. But the scientific debate about nitrogen and phosphorous levels in our rivers is “still a bit confusing” for most people. The approach to cleaning up rivers – rural or urban – needs to be the same, he says. “Some of the big polluters are our urban centres with stormwater run-off and inadequate sewerage systems. [Meanwhile] the intensification of farming, especially dairying, has led to a big increase in nitrates in many of our waterways.”

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Collect as many tokens as you can from Dairy News during June and July and send them in to win. Entrants will receive one entry per unique token code submitted online or by post. BONUS CODE ISSUE 314 June 10

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NEWS  // 13

Fonterra operates dairy farms in two Chinese provinces.

Fonterra teams up with Abbott FONTERRA AND Abbott have formed a strategic alliance to develop a dairy farm hub in China. If approved by Chinese regulators, Fonterra and Abbott will form a joint venture to invest $342 million into the farm hub; made up of five dairy farms and more than 16,000 dairy milking cattle in production, producing up to 160 million litres of milk annually. The companies say the JV will leverage Fonterra’s expertise in dairy nutrition and farming in China and Abbott’s commitment to business development in China. “This would be Fonterra’s third farm hub in China and will complement our existing farming operations in Shanxi and Hebei Provinces that have been very successful,” says Fonterra chief executive, Theo Spierings. “Farming hubs are a key part of our strategy to be a more integrated dairy

business in Greater China, contribute to the growth and development of the local Chinese dairy industry and help meet local consumers’ needs for safe, nutritious dairy products.” Abbott chairman Miles D White says it is pleased to partner with Fonterra, a global leader in dairy science, on this alliance to build dairy capacity in China. “This is a very important step in our growing commitment to Chinese consumers,” says White. “Our goal is to help people live healthier lives; that means investing in the countries where we live and work. We’re committed to using our science, our product quality and educational efforts to raise the level of health in China and around the world.” The herd for this hub will comprise animals either imported, or sourced

from Fonterra’s existing farm hubs. All dairy cattle will have genetics traceable to New Zealand, Australia, USA or Europe. As the world’s largest global milk processor and dairy exporter, Fonterra brings industry-leading dairy standards and practices to farm operations. The Fonterra-Abbott joint venture will operate the farm hub in China to these same standards to produce high quality dairy. Pending regulatory approval, the first farm is expected to be completed and producing milk in the first half of 2017 and the remaining farms will start production in 2018. Fonterra and Abbott have a long history in China and have each made substantial commercial and social investments in the country; Abbott has 4000 employees in China.

Future milk for niche products not ruled out PETER BURKE peterb@ruralnews.co.nz

NEW ZEALAND Animal Eval-

uation Ltd (NZAEL), which runs the national breeding objectives, says the present breeding values are still focused on producing milk for powders and other commodity products. But Dr Jeremy Bryant, manager of NZAEL, a wholly-owned subsidiary of DairyNZ, says there could be future changes to produce milk for certain niche products. Dr John Lucey, from the Wisconsin Centre for Dairy Research, who was in New Zealand recently, predicts major changes to way cows are bred over the next 10 years. This will produce a new, innovative range of dairy products based on selecting specific genetic traits in cows.

“The trouble is when you bring Bryant says this is already happening to some degree in New in these exotic breeds they don’t Zealand with Synlait offering an necessarily stack up in other areas,” he says. incentive for farmers “So you might to produce milk with a get them producing higher lactose content. slightly more of a par“They have gone ticular product but more down the Friethey don’t stack up sian route which economically for other will naturally prothings. duce more of a lac“But I think there tose product or more is a move towards the lactose in their milk. more detailed milk From a breeding perJeremy Bryant, NZAEL components. There spective we might prois work being done at duce a breeding value for these milk component traits Massey where they have looked at and then the farmers could use that different components in milk and information to tailor to what their over the next 10 years we’ll increasingly look at that. It’s certainly on processor is demanding,” he says. In some other major dairying our horizons but we don’t have any countries, such as Ireland, new solutions at the moment.” exotic breeds have been introduced, @dairy_news but Bryant is sceptical. facebook.com/dairynews

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DAIRY NEWS JULY 22, 2014

14 //  NEWS

Farm consultants need to be Farm consultant John Stantiall.

PETER BURKE peterb@ruralnews.co.nz

A LEADING Manawatu farm consultant, John Stantiall, says dairying is now a complex industry and consultants need to be up with the play. His comments came during a visit to Massey University’s No 4 dairy farm where a trial on the economics and environmental benefits of cow houses is taking place. About 60 members from the Institute of Primary Industry Management attended a briefing on the trial. Members include private farm consultants, farm managers and consultants from organisa-

tions such as DairyNZ. The trial comes under the umbrella of Pastoral 21 – a collaborative project co-funded by government, DairyNZ, Fonterra, DCANZ, and Beef + Lamb NZ. The trial looks at the whether cow houses can reduce the environmental footprint and increase production and profitabil-

ity on a dairy farm. The cows still get their main food intake from pasture and are only housed indoors for a limited time each day. Stantiall says the Massey scientists have indicated this is a very complex trial. “Our people have heard a little bit about this trial but it’s not until you get

here and look around and talk to the people and listen to the scientists that you know what it’s about,” he says. “If the people at Massey want these ideas to get out into the farming community there’s got to be a connection somewhere along the line. Rural professionals really help to facilitate that sort of infor-

GROOMING THE COWS ONE OF the treats for cows at No 4 Dairy farm are four ‘grooming areas’. You could call them the ‘beauty salon’ of the cow shed. A large brush, when touched by the cow will rotate and give them a comforting scratch that perhaps years ago farmers might have done. Dr Jean Magerison who is in-

volved in the trial from an animal welfare perspective says the cows love to have a bit of a groom. “Animals will naturally groom each other and groom themselves and it is high on the list of showing that cows are really very happy and it’s very positive in terms of welfare indication,” she says.

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NEWS  // 15

up with the play mation to farmers but we also need to know ourselves so that when people are talking about it, at least we are aware about what’s going on.” Stantiall sees the interaction with the Massey scientists as an opportunity for consultants to asks questions and give their views. In the past large field days were held for farmers at both Ruakura and Massey, but Stantiall sees real value in smaller specialist groups which open new networks to spread the message and keep as

many people as possible in the loop about the changes taking place. “In the past 10 years we have gone from people thinking they want to put effluent on the smallest possible place of their farms so that it didn’t create too many problems. Now they want to spread it as far and as wide as they can because they realise that it’s got value,” he says. Meanwhile Institute of Primary Industry Management chief executive, Stephen Macaulay, says visits to places like Massey help upskill members by

expanding their knowledge base. When they visit farming clients they can better advise them on best practice and innovation coming from leading researchers and scientists. “We hope that this day will generate momentum to organise other events

that are relevant and pertinent to rural professionals. Sixty is a good turnout rate and it shows that there is a thirst for knowledge out there. It is more and more important particularly with so many more innovative things happening out there with the primary industry,” he says.

Stephen Macaulay at the No4 dairy farm.

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Massey sees benefit too BRIEFING DAYS for rural professionals and others also benefit Massey University, says Professor Mike Hedley who is leading the project. It’s good to have farm consultants seeing what they are doing and understanding the “nuts and bolts” of how these systems are run. Hedley says there were plenty of questions ranging from feeding cows, the type of cow beds and the cost of running the operation. “These meetings are really good in getting that detail over to, in his case, farm consultants that want detail. There is a lot that is often said in these meetings that doesn’t appear in articles…. It’s good from Massey’s point of view getting them up onto the farm to see how we are investing in agriculture,” he says. Hedley says the project at No 4 Dairy is innovative and notes people dairy must move forward both with production and the environment. The cow house at Massey provides a way of reducing the environmental footprint of a farm. But everybody is scared about the financial costs of putting up a building like this. “They are very interested in the dollars and because of the drought in the first year we haven’t achieved the economic financial return that we hoped to make even in the first year so this next season is very important. Ideally we’d like a wet cold winter to see whether the cow house can pay for itself,” he says. Hedley says interestingly they don’t need a lot of extra labour to run the operation. The system is much easier for managing morning milking with the cow only 50m away from the shed. Hedley says they are getting a lot of requests to see the work at No 4 Dairy so generally they will only take groups of people to minimise the effect on staff time.

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DAIRY NEWS JULY 22, 2014

16 //  NEWS

Fonterra to help Japanese farmers FONTERRA IS seeking four Hokkaido dairy farms to take part in a study to increase the efficiency and profitability of grassland dairy farming in Japan. The study, beginning December, will collect and monitor physical, production and economic performance data from

four leading Hokkaido grassland dairy farms. It will run for one production season, collecting data during summer outside grazing periods and indoor winter housing. Run with the New Zealand government and Japanese farm equipment firm Farmage, the study

is aimed at helping lift the efficiency of pasture utilisation by grazing cows, improving milk production and quality, and increasing economic productiveness. The president of Fonterra Japan, Yasuhiro Saito, says knowledge sharing between the Japan and New Zealand

dairy industries is crucial for the affordability of dairy products and choice to local consumers, and to strengthen confidence in dairy for good nutrition. “Our project in Hokkaido is dairy farmers helping dairy farmers. New Zealand and Japan share strong

agricultural bonds, and we see working with other pasture-based dairy industries keeping grassfed dairy production at the forefront of global dairy innovation and supply. “At a local level, dairy is growing in Japanese diets, but for the Japanese dairy industry to support

Dairy is growing in Japanese diets but raw milk production is falling.

its own consumer base it needs to address falling raw milk production and high production costs pushing smaller operators out of the industry. “We look forward to working with Hokkaido dairy farmers to improve

farming experience including time spent in Japan on pasture research and understanding the effects of continental climate on grassland farming. Betteridge and his colleagues will shortly

“Knowledge sharing between the Japan and New Zealand dairy industries is crucial for the affordability of dairy products.” their efficiency and productivity,” says Saito. Fonterra has appointed Keith Betteridge to lead the project. He has 42 years of grassland dairy

speak to Hokkaido dairy farmers to find the four who will participate in onfarm data collection. @dairy_news facebook.com/dairynews

IN BRIEF Effluent pioneer wins THE OWNER of a software company that sells an effluent management tool to dairy farmers has been named Mumtrepreneur of the Year. Bridgit Hawkins owns Regen Ltd, which helps farmers to manage effluent. Its software turns data on soil moisture, temperature and rainfall into a simple, daily recommendation sent to the farmer by text message. The company launched in 2010 and is said to have hundreds of customers. The competition is sponsored by Fly Buys, whose chief executive, Stephen England-Hall, says the Mumtrepreneur Awards recognise Kiwi women who run a business while raising a family at home. “Any business owner will testify that launching a company involves a tremendous amount of hard work and mumtrepreneurs are balancing this with bringing up children.” Hawkins’ also took home the title of Best Agribusiness and will get 40,000 Fly Buys points.

Say cheese! NEW ZEALAND Cheese Month is making a return in October. Kicking off on October 1, Cheese Month is a 31 day celebration of New Zealand speciality cheese – the perfect excuse to buy, eat and love all Kiwi cheese. It is organised by the New Zealand Specialist Cheese Association – regional and national events nationwide, as well as tastings, demonstrations and in-store promotions. “New Zealand Cheese Month celebrates our country’s unique and diverse range of delicious cheese made from fresh, good quality milk.” www.cheeselovers.co.nz

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DAIRY NEWS JULY 22, 2014

18 //  NEWS The environmental footprint of different dairy products will be finalised by 2016.

Environment footprint mapping underway FONTERRA HAS

joined other major dairy players in a project to map the environmental footprint of different dairy products. The Dairy Environ-

mental Footprint Pilot, known as Dairy Pef, will give results for products by mid-2016; it will include a specific methodology – known as product environmental footprint

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project as having the same pro-active approach as emerged several years ago in the GDAA (Global Dairy Agenda for Action) and its follow-up initiatives driven by the global dairy industry. “The project will start by assessing existing footprinting methodologies in the dairy sector and identify their limits and differences, in order to develop a single set of rules covering the entire life cycle of dairy products. “This methodology will then be tested on existing products on the market by some of the participating companies.” The final step will be to develop and test communication tools on this footprint, business to business and with consumers. According to EDA, it will be important to ensure that the methodology is scientifically robust, the data used is of good quality, and that the communication tools will translate the science and methodology into easily understood messages.

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DMK, Fonterra, FrieslandCampina, retailers, government agencies and industry organisations, all intent on indepth and high quality coverage of the practical issues and reality of the dairy sector, says FrieslandCampina. The public will be consulted. The project includes a huge array of environmental issues including water use, other different emissions, land use change and allocation questions. The framework of the pilot is given by the European Commission’s DG Environment initiative for a “single market for green products”. A three-year pilot phase began in 2013 for non-food products and now in 2014 for 11 food and drink pilots. The European Dairy Association (EDA) and several parties in the dairy and environmental fields have submitted a joint project application and are committed to work together. The project is officially recognised as an EU framework project. EDA commends the

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expert Nigel Patterson has been appointed field consultant for CRV Ambreed, managing the Nelson, Marlborough Murchison area. South Island sales and services manager Mark Duffy says the company welcomes someone with such a strong background in dairy. “Nigel has 26 years experience in the dairy industry, including running his own pedigree Jersey herd, share milking, providing testing services and supporting farmers through artificial insemination. His knowledge of dairy cattle genetics will add value to [farmers’] breeding programmes.” Patterson has long links with CRV, having bred bulls that have appeared in CRV catalogues. He is an experienced AI technician, and will train and certify AI technicians and monitor and supervise the AI programme in the South Island. “Nigel… will offer a new approach to looking at our clients’ farming businesses, particularly in the Tasman and Marlborough region,” says Duffy. “Because he’s bred his own bulls for CRV, he has an enormous amount of knowledge to share.” Patterson says he is passionate about herd management and breeding, and wanted to share his experience.

DAIRY NEWS JULY 22, 2014

NEWS  // 19

Give me the best start The full impact of water quality regulations by regional councils on milk production is yet to be quantified, says Rabobank.

Environment rules favour innovative farmers A NEW report says farmers face a hefty challenge in having to comply with environmental regulation while maintaining profitability. The Rabobank report Competitive Challenges – Environmental Regulations are Changing the Rules of the Game calls for increased research and innovation in farming systems to overcome the challenge. Rabobank New Zealand chief executive Ben Russell says regulation was essential to protect the environment, but the report shows it has implications for international competitiveness in agriculture. Increasing environmental regulations challenge agricultural exporters worldwide, impacting competitiveness by increasing costs and restraining production growth. The report examines the regulatory approaches taken to protect the environment in New Zealand, California and the Netherlands and the impact on their respective dairy industries. For New Zealand – where regional councils are at varying stages in the regulatory process relating to water quality under the Resource Management Act’s National Policy Statement for Freshwater Management – the full impact on agricultural production and competitiveness is yet to be quantified, Russell points out. “However it is clear that environmental regulation affecting agricul-

ture in New Zealand is at an earlier stage than in California and the Netherlands, and therefore the costs of compliance have yet to be fully built into the cost structure of the New Zealand dairy industry.” Russell says more fundamental research and innovation about how to retain and use nutrients within farming systems in cost-effective ways – rather than having them leave the system where they become problematic for water quality – was essential for New Zealand to maintain its competitiveness among dairy exporting countries. “The best possible outcome for New Zealand is the development of farming systems and technologies that allow farmers to continue to increase productivity in a cost-efficient way, while meeting community standards for freshwater quality. “This is the ‘holy grail’ that is important, not only to maintain water quality, but also to protect the significant contribution agriculture makes to the New Zealand economy.” While the report focuses on the dairy industry, similar challenges exist for farmers in all agricultural sectors in New Zealand, he adds. The report co-author, Rabobank director of dairy research, New Zealand and Asia, Hayley Moynihan, says for New Zealand, regulators are largely adopting an ‘effects-based’ approach, focused on setting stan-

dards or limits on emissions that must be met, but primarily leaving the individual business owner to determine the most efficient or effective way of complying. Moynihan says the New Zealand approach to environmental regulation brings challenges and opportunities for local dairy farmers. “The effects-based model being implemented here has disadvantages in that it can create considerable uncertainty for producers, as they are unsure exactly what changes need to be made to meet standards. “Whereas under the more prescriptive, inputs-based approach, it is simply a case of farmers doing what the rules say they are allowed to do. “The great opportunity is that controlling effects rather than inputs creates incentives for innovation. Farmers in New Zealand have the opportunity to determine the most efficient, cost-effective means of meeting or exceeding requirements. ”And the most competitive and successful producers will be those who can best adapt to the new regulatory environment. Those who are willing to develop their understanding of environmental issues, innovate and take a whole-ofbusiness approach by progressively incorporating environmental management into their day-to-day farming practices, will be the most successful.”

UNDERSTAND YOUR FARM’S NUTRIENT PROFILE THE FIRST important step, the report says, is for farmers to understand the environmental ‘profit and loss’ of each farm. In particular, for dairy this means it is important for farmers to understand their farm’s nutrient profile and then to plan and budget for future required compliance with the regulations, says Hayley Moynihan. Many farmers collect this information already as a requirement of their dairy company.

“Farmers who need to reduce their nutrient leaching levels to comply with the future regulations need to understand their position sooner rather than later, and make long term plans on how to achieve compliance. “The particular farming system changes, if any, a farmer adopts will depend on their individual circumstances. Factors such as farm location, soil type, financial situation, management capability and

individual preference will all play a role in influencing that choice. “An obvious challenge for many farmers is that specific regulatory requirements in many regions remained uncertain as regional councils undertake consultation and planning according to different timetables. However it is likely that limits on nutrient leaching will in time be a fact of life in most regions, and certainly by 2025,” Moynihan says.

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DAIRY NEWS JULY 22, 2014

20 //  WORLD

Scholarships show Chinese the best of Oz dairying THE AUSTRALIAN

dairy industry is bracing for a growth in demand for its dairy products from greater China in the coming years. To promote Australian dairy, Dairy Australia runs the Greater China Scholarship programme, which involves Chinese dairy industry leaders and workers visiting local research centres, factories and farms. Participants gain insight into why Australia’s dairy is known for quality and safety, says Charlie McElhone, group manager trade and strategy, Dairy Australia. This year’s participants in the programme hailed from some of the largest dairy companies in China, Taiwan and Hong Kong. McElhone says the

Dairy Innovation Australia’s Geraldine Walker (centre) with Chinese visitors looking at cream cheese functionality. PHOTO: SARAH XU, DAIRY AUSTRALIA

taste for Australian dairy – a prestige product in China – is likely to grow in the coming years. China (including Hong Kong and Macau) is the world’s largest importer of dairy products and in 2012-13 Australia exported 129,000 tonnes of dairy products there worth US$437 million. During the programme the delegates did training on cheese and functional dairy ingredients at CSIRO, Dairy Inno-

vation Australia Ltd and the National Centre for Dairy Education Australia. They visited seven dairy plants, two farms and several exporting companies. They also tasted milk, cheese, butter, yoghurt and ice cream. “For me, the most valuable aspect of the programme is the face-to-face communication,” says Zhiyong Wang, factory manager, East China central factory, Bright Dairy. “The experience of being here

will help me explain the unique aspects of Australian dairy to my colleagues and customers.” “This trip has helped me to understand Australia’s industry and the products on offer and will build a stronger relationship between Australia and China over the long term,” says Lirong Wang, deputy secretary general, China Dairy Industry Association. “Not only have we already started to explore

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MANUFACTURE AND DESIGN

Irish Agriculture Minister Simon Coventry at Thiel Cheese R&D Centre in Wisconsin.

Irish cheese plant opens in the US THE IRISH Dairy Board has opened a US$12m

cheese plant in Wisconsin. The new facility, at Thiel Cheese & Ingredients, is part of a US$80m expansion investment made by the IDB in their US food ingredients business; production capability has increased 40%. IDB acquired the Thiel business in 2011 and the business has since grown strongly with sales rising to US$80m in 2013, up 13%. Thiel supplies cheese and cheese-based ingredients to some of America’s largest food companies. Irish Minister for Agriculture Simon Coveney, who opened the plant last month, says it will further strengthen the positioning of Ireland and Irish agribusiness expertise in the US and support the economic prospects of Irish dairy farmers. “The opening represents the kind of investment which will help the sector realise its true potential.” The Irish dairy industry is to launch a major expansion, starting in April 2015, when the European Union abolishes quotas that have limited the amount of milk produced in Europe for decades. The Thiel development includes a customer innovation centre intended to develop new products and functional dairy solutions. The factory also has some of the most advanced cheese processing equipment in the US dairy industry. IDB is Ireland’s largest exporter of dairy products. Founded 50 years ago, IDB is best known for its Kerrygold and Dubliner brands. It entered the US market in 2008. Ireland, like Wisconsin, is known worldwide for top quality dairy produce.

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DAIRY NEWS JULY 22, 2014

WORLD  // 21

Oz farmers welcome chemicals law repeal AUSTRALIAN FARMERS are

welcoming the repeal of legislation that would have required them to periodically re-register chemicals to verify they were safe to use. The legislation – Agricultural and Veterinary Chemicals Legislation Amendment (Removing Re-approval and Re-registration) Bill 2014 – was passed by the Senate with cross-party support. National Farmers Federation (NFF) says this eases the burden of rules imposed on Australian farmers. The ruling Coalition and

effective regulation is necessary,” Kidd said. “It safeguards businesses, our environment and our communities. But poorly designed regulation can act like a tax on business, raising costs and stifling innovation.” Kidd thanked the ruling Coalition and Labour for supporting the repeal. “We have been clear in calling for a streamlined approach to regulation, including the removal of mandatory re-registration. The new laws are a win for the NFF and its members, as we push for sound public policy and removal of red

“In Australia we are proud to have a farm chemical regulatory system based on science.” – Reg Kidd the NFF argued the re-registration laws could cost the agriculture sector an extra A$2 m to A$8 m per year. Proponents of mandatory re-registration had argued it would shift the onus onto chemical companies to prove the products they sell remain safe for humans, animals and the environment. However NFF agricultural and veterinary chemicals taskforce chairman Reg Kidd says it would have led to more regulation and higher costs for producers. “Farmers understand

tape. “Under this legislation, we will see farmers continue to have access to affordable chemicals that are proven to be safe and effective. At the same time, regulators can now focus on managing real risks to human and environmental health, without getting bogged down in bureaucracy.” Australia has a strong, robust chemical regulatory system. It already includes a chemical review programme to assess any chemicals worrying the public. The amendments will help simplify and

LICENSE TO USE Approvals for chemicals will no longer end after a particular period and registrations may be renewed perpetually. The legislation removes redundant provisions that allow applications to re-approve and re-register active constituents and chemical products. The legislation also improves the Australian Pesticides and Veterinary Medicines Authority’s ability to secure information about the safety of chemicals supplied in the market and streamlines the process companies have to go through to vary an approval or registration. The authority will no longer have to make an unnecessarily costly and lengthy assessment of simple changes to chemicals, such as the name of the chemical, its pack size or name of manufacturer.

enhance the existing programme, not duplicate existing functions. Says Kidd, “In Australia we are proud to have a farm chemical regulatory system based on science.” Australian Agriculture

Minister Barnaby Joyce says the legislation is a victory for common sense. Australian farmers don’t have to re-register chemicals, thanks to a new law passed last week.

DAIRY NEWS JULY 22, 2014

22 //  OPINION RUMINATING

EDITORIAL

Welcome to the silly season

MILKING IT... Sorry Sir, you’re wrong SIR RICHARD Branson is entitled to his own opinion, just not his own facts. Branson, the British billionaire entrepreneur, says, according to Grazing the Net, he’s given up eating beef and wants you to do the same. Why? For your health and to save the planet, of course. He believes you should do so to reduce your carbon footprint. Seriously? That advice from a guy who owns an island in the Caribbean? That carbon footprint lifestyle must be off the charts. But wait, Branson cites some of his “facts” to support his proposition. Like, “it’s estimated that 14.5% of global man-made greenhouse gas emissions come from livestock—which is more than the contribution from all forms of transport.” Sorry, Richard, that claim (from the UN report Livestock’s Long Shadow) was thoroughly debunked seven years ago.

Silver lining?

TPP push

A SILVER lining in last week’s dairy market dive could be a better appreciation among townies of what this sector does for the economy. Last time prices tumbled to these levels and dairy belts were pulled in several notches, the finger was pointed at the global financial crisis more than the downturn in the nation’s biggest industry. This time, with economies elsewhere slowly starting to recover, if the downturn persists and dairy sector spending is ruthlessly reined in the penny might finally start to drop with dairying’s deniers. While we’d all rather not go there, in the long run it might actually be a good thing.

FONTERRA IS doing its bit to push the TPP trade partnership negotiations along. The co-op’s decision to help Japanese dairy farmers lift milk production may raise a few eyebrows. However, the co-op is out to prove that TPP will not be a one-way street; Fonterra will be pushing its products into the lucrative Japanese market but at the same time, helping the ageing farming population make more milk (and more money). One can only hope Fonterra’s gesture will make an impact; right now Japanese farmers are in no mood to open their borders.

Dogfight over milk IN WESTERN Australia, the state’s major dairy processors are going to great lengths to sign new contracts for access to the state’s limited milk. Media reports claim new dairy farmers signing with WA’s largest dairy processor Brownes are being paid more than existing suppliers. It is understood newly signed producers are receiving A55 cents-a-litre for their milk, while existing suppliers are earning less than A50 cents-a-litre; farmers are reportedly unhappy. Brownes, which was sold in 2010 by Fonterra, is fighting for raw milk with Harvey Fresh, a company recently bought by Parmalat. Fonterra will be glad to be out of this dogfight.

IT’S THE silly season – when political parties turn to their favourite whipping boy in a desperate bid to win votes. Predictably the Green Party has made the dairy industry that whipping boy for the all the woes in the country’s waterways. The party’s environment policy says the equation is simple; more cows equals more pollution therefore cow numbers have to be reduced. Equally predictably the Greens have refrained from saying that the most polluted waterways are actually in our urban areas – like Auckland. There might be some Queen St farmers there, but we can’t ever recall seeing cows on Queen St, let alone Cornwall Park; just stormwater run-off and sewerage treatment plants. It’s hard to argue with John Key and his ministers when they say the Greens hate farming and in particular dairying farming. It’s also hard to fathom why the Greens never seem to acknowledge what wrecked at least two lakes – Rotorua and Horowhenua. The local authorities at the time used these lakes as de-facto sewerage systems. There is still no mention of the problems that seem to occur in our rivers just below the discharge points for stormwater, sewage and industry. Take the Waiwhetu Steam in the Hutt Valley – highly polluted but not a cow in sight. The Greens ‘one-eyed’ approach is a nonsense. On a daily basis its ideas are becoming more draconian and silly. The party is destroying its credibility with sensible thinking people who want a comfortable, sustainable lifestyle. The party’s goal of making all rivers swimmable might be aspirational and sound great. But without a strong dairy industry to earn the dollars, how will it all this paid for? One has visions of ‘funny money’ being re-invented. Dairy farmers and the various groups that underpin their industry are proactively working to solve a myriad of issues that face the rural sector. It’s about balance – and there are rural communities whose survival depends on the dairy sector and who would rather have jobs than a pristine river. Aren’t the Greens meant to be all for collaboration and giving communities a say in their destiny? Their environment policy is dictatorial, and who is to say that they know best. If by some miracle they get into power, the worry would be that Labour wouldn’t have the balls to blunt the Greens crusade and that the primary sector would be thrown into chaos.

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DAIRY NEWS JULY 22, 2014

OPINION  // 23

Good signs for FTA with India Trade Minister Tim Groser spoke at the recent India-NZ Business Council meeting in Auckland. He spoke about an FTA with India. Here’s some of what he said; NEW ZEALAND would be a more than useful partner if India decides to pursue a trade liberalising agenda as a means to economic competitiveness. Our size means we are an ideal test-case for a progressive approach to liberalisation and explains our strategic role when China was looking for its first outward-looking FTA partner. The India-NZ FTA was launched by Prime Minister Key and then Prime Minister Singh in 2009. We have made progress but are not yet where I would like us to be. New Zealand is committed to rapidly progressing the FTA negotiation to its conclusion if the Indian Government desires. However, if we receive the green light from New Delhi, we will come hard up again on the central problem New Zealand has not only with India but with every country we negotiate with: agriculture liberalisation, without which New Zealand cannot enter into any FTA. Somehow, we have yet to convince some of our negotiating partners that there are not secret convoys of New Zealand milk tankers, hidden behind the Bombay Hills near Auckland, and just waiting to flood their country with milk, given half a chance through trade liberalisation. Many abroad do not realise that New Zealand only accounts for 3% of total milk production. We simply do not have the land to produce the projected global increase in dairy demand over the coming decades. Increased demand for dairy is a global phenomenon, but applies equally to the rapidly growing Indian middle class. Indian dairy farmers have a central role to play in satisfying that demand. Many do not realise that India is a larger producer than New Zealand, accounts for 14% of world dairy production, and with efficiency gains could increase that production considerably. New Zealand companies could play a role in the process of modernisation of Indian agriculture. We have already seen New Zealand companies

play this role in China. The stark reality is that New Zealand’s local production cannot keep up with Chinese demand for safe, high quality milk. That is why a commercial decision has been made by Fonterra to invest in Chinese farms on the back of the strong commercial interest they have in the Chinese market through the FTA. Undoubtedly, rural modernisation and building rural incomes is critical for India. The agriculture sector is India’s largest employer, a critical support structure for the poor and a key component to food security. Negotiating a balanced and liberalising FTA with New Zealand offers opportunities for both countries in this regard. I am therefore convinced that we can chart a pathway through the agricultural political minefield to conclude an FTA with India that includes agriculture. We have already had some preliminary and friendly conversations with the new Indian Government on these matters. Believe you me, I would not be making the quite blunt views I have already expressed in this speech about competition and the need for new thinking on trade policy if I thought such views were completely out of tune with emerging thinking in New Delhi. I am not that reckless. Having said that, we fully understand that the new policy of the Government is not yet settled. Important industry still needs to better understand the benefits of FTAs and their link to economic growth. There is also an internal review of trade policy taking place in New Delhi that needs to be completed. What is clear is that the prospects for the NZ FTA will not be determined in a policy vacuum. Any reconfigured Indian position will reflect a broader strategic appraisal of FTAs and the role they might play in achieving the broader policy goals of the new Government. And that takes you all the way back to the core question of competitiveness.

For that reason, we are optimistic that India’s political leadership will ultimately give the green light for its negotiators to conclude the FTA with New Zealand. Our Chief Negotiator will go to New Delhi later this month and I

am already looking forward with enthusiasm to my own first opportunity to have informal discussions with the new Commerce Minister on this important negotiation for New Zealand and the Indian economy.

India-NZ Business Council chairman Sunil Kaushal (left), Sir Richard Hadlee and PM John Key with the Cricket World Cup.

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DAIRY NEWS JULY 22, 2014

24 //  AGRIBUSINESS

Genetic gains for bull teams HERD IMPROVEMENT company Liberty Genetics says ten years of breeding worth (BW) statistics on its Jersey, Friesian and Crossbred bull teams released last month show that the BW values of its bull teams are ranking well against the other top sire teams in the country. Liberty Genetics manager of genetic development Dave Hayman says on average, across its three sire teams, there is only about five BW difference between the sire team and other top performing teams; this includes NZ Animal Evaluation’s adjustments for young bulls.

land ranks dairy bulls Hayman has overseen and cows based on their the company’s breeding expected ability to proprogramme since 2006. duce profitable and He says the most impresefficient replacements. sive statistics are for LibThe traits included in erty Genetics’ Jersey bull BW calculations are team, which show an averprotein, milkfat, milk age annual BW gain of $15 volume, liveweight, feryear-on-year over the past decade, a gain of 146 BW in Dr David Hayman, Liberty tility, residual survival Genetics and somatic cell count ten years. (source: www.nzael. “Our team is right up with the top Jersey teams in New Zea- co.nz). Hayman says Liberty Genetics’ BW land with the average BW for our 2014 improvements are impressive because Jersey bull team sitting at $243.” BW is the basis on which New Zea- its breeding programme is young com-

pared to the industry; it was formed only in 1998. “When it comes to BW gain, the cow population lags behind the bulls. Cow population gains have typically been about nine-ten BW per year for the past ten-fifteen years. Whereas the New Zealand sire population has typically gained about twelve-thirteen BW per year over that period. “Liberty Genetics’ average BW gains of our bull teams continue to follow the bull population, gaining about twelvethirteen BW year-on-year. However, since we got started only 16 years ago, Liberty Genetics’ bull team look to be

improving at a faster rate.” In addition to its BW gains in its Jersey team, the BW statistics released by Liberty Genetics also show gains for its crossbred and Friesian bull teams over the past decade. Its crossbred bull team has had an average annual year-on-year BW gain of $12 with a total gain of 121 BW. The average BW of its 2014 crossbred bull team sits at $242. Its Friesian bull team has had an average annual year-on-year BW gain of $13 for ten years with a total gain of 131 BW. The average BW of its 2014 Friesian bull team is $228.

Technology, innovation lead to win EARLY ADOPTION of Ag Hub farm management software was a winning ingredient for a Tikorangi dairy farm in the recent Ballance Farm Environment Awards. Ballance says judges described the farm as an outstanding example of best dairying practice. Taranaki’s first supreme title was presented to Gavin and Oliver Faull, Faull Farms Ltd, and their sharemilkers Tony and Loie Penwarden. The Faull Farms Limited-Trewithen Partnership also collected the Ballance Agri-Nutrients Soil Management Award, the LIC Dairy Farm Award, the Massey University Innovation Award and the PGG Wrightson Land and Life Award. The judges were impressed with the deter-

mination of the partners to achieve best practise in all areas, noting the outstanding adoption of technology and innovation. Faull Farms director Oliver Faull says the partnership took a long-term approach to minimising the farm’s environmental impact. In an effort to better understand the farms’ soils and how they impacted the business, they had implemented Ballance Agri-Nutrients’ Ag Hub at Faull Farms. Ag Hub is a modular online farm management system that collects and displays automated data, so that farmers have just one place to go for information and insight about their farm. “We identified that, as our operation grew, small changes could result in material gains. Ag Hub

Farm owner Oliver Faull (right) with Loie and Tony Penwarden.

helped us to become more ‘scientific’ in the management of the farm and minimise guesswork. “Ag Hub has helped to reduce our fertiliser application through more tailored applications to paddocks. It also enables us to accurately record effluent redistribution onto pastures by tracking the rates, duration and concentration of application from our efflu-

ent smart hydrants. This means we can maximise effluent redistribution onto pastures responsibly, which has reduced the need for application of fertiliser,” says Faull. As a director of Faull Farms, Faull believes Ag Hub’s cloud-based platform was helping the partnership make management decisions based on transparent, up-to-theminute information.

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DAIRY NEWS JULY 22, 2014

AGRIBUSINESS  // 25

Fonterra retains global ranking FONTERRA HAS

maintained fourth place in Rabobank’s top 20 dairy companies. Chinese giants Yili and Mengnui outperformed their peers with 14% and 20% sales growth respectively. Otherwise, the largest dairy companies are “reasonably entrenched,” Rabobank says. Switzerland’s Nestle retains number-one spot followed by French companies Danone and Lactalis. Nestle had a 2013 turnover of US$28.3b, Danone US$20.2b, Lactalis US$19.4b and Fonterra US$15.3b. Yili, with a turnover of US$7.6b, entered the top 10 for the first time, jumping to 10th spot from 12th last year on the back of market share gains, price increases, product mix upgrades, and/or acquisition. Mengniu pushed up to 14th place boosted by the acquisition of Yashili. Dairy Farmers of America saw a 22% expansion in dairy sales on the back of firm milk prices, and mergers and acquisitions. Canada’s Saputo continues its march up the list to eighth place, previously ninth, partly due to several acquisitions including Australia’s Warrnambool Cheese and Butter. Rabobank says the

last 18 months have seen most of the players battle challenging conditions with weak economies and supply constraints undermining sales growth in key markets. “Against this backdrop, mergers and acquisitions have become an attractive route to growth and profitability,” Rabobank says. “But with billion dollar deals increasingly hard to come by, dairy giants will need to acquire or tie up with more companies to sustain the same rates of growth in the future. Those adept at acquiring and embracing new businesses will remain well positioned to survive and thrive.” Rabobank analyst Tim Hunt says despite the increase in transactions the dairy sector had no billion dollar deals in the 12 months to June 2014. “While underlying growth will pick up in coming years, many markets will not return to the rapid growth rates seen before 2008. In this context, mergers, acquisitions and joint ventures will remain a key avenue to growth and profitability. “However with attractive targets sinking, dairy giants will need to acquire or tie up with more companies than in the past to sustain the

TOP 20 ■■

Nestle (Switzerland)

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Danone (France)

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Lactalis (France)

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Fonterra (New Zealand)

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FrieslandCampina (Netherlands)

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Dairy Farmers of America (USA)

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Arla Foods (Denmark/Sweden)

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Saputo (Canada)

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Dean Foods (USA)

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Yili (China)

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Unilever (Netherlands/UK)

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Meiji (Japan)

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DMK (Germany)

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Mengniu (China)

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Sodiaal (France)

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Bongrain (France)

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Kraft Foods (USA)

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Muller (Germany)

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Schreiber Foods (USA)

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Morinaga Milk Industry (Japan)

same rates of growth.” Sales volumes in most OECD dairy markets have been stagnant with better growth in emerging markets, but these markets have also slowed and are generally harder to access.

Standing tall: Fonterra remains the 4th largest dairy player in the world pictured here is the co-op’s Whareroa plant, Taranaki.

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DAIRY NEWS JULY 22, 2014

26 //  AGRIBUSINESS

German co-op joins GDT PAM TIPA pamelat@ruralnews.co.nz

EUROPEAN DAIRY

companies joining the Global Dairy Trade (GDT) auction reflects that Europe is an expanding market focusing more on exports, says GDT director

Paul Grave. This is accelerating with CAP (EU common agricultural policy) reform and farmers’ quotas lifting in 2015. German cooperative Molkerei Ammerland is to become the third European seller on GDT. The move is welcome as it further cements the

online dairy auction as the key platform for international dairy trade, says Grave. “It deepens the liquidity of the market – the number of people and the volume going through. It improves price transparency and recognises the growing importance of

Paul Grave

GDT in international trade in price setting.” The other Europeans in GDT are Arla, Denmark, one of the first to join, and Euroserin, France. Molkerei Ammerland will join an overall existing seven sellers from the beginning of September, bringing sweet whey

powder to the auction for the first time. Whey powder is new to the GDT – it comes out of the cheesemaking process which is bigger in Europe than Australia and New Zealand. “It’s a non-Fonterra product so it makes the market more credible again.” Molkerei Ammerland, one of Europe’s leading dairy cooperatives, gathers milk from 2000 farmers in northwest Germany, and processes 1.5b kg of milk for sale to 50 countries worldwide. The co-op makes cheeses, butter, whey powders, milk powders and fresh dairy products, and has 125 years experience. Grave says GDT wants to add more sellers and everyone joins for different reasons. “It is a great window into the global marketplace, it enables a lot of them to transact and grow their market presence and grow their visibility in a way they haven’t been able to do before – forge their own way into the market-

place.” GDT enables participants to do business for themselves rather than use traders or third parties. “It is a good price reference so it enables them to determine what the market price is on the day and have a more independent, trusted, transparent reference price. Over the last year $5b was traded through the platform and one million metric tonnes, which is huge, says Grave. With eight sellers from seven countries and 650 buyers from 90 different countries, it has gained huge momentum since launching in 2008 by Fonterra with one product, one seller and 100,000 t of product. The introduction of sweet whey powder extends GDT’s offerings to nine product groups. Molkerei Ammerland chief executive Ralf Hinrichs says “exports already make up 49% of our sales, and will become increasingly important as we increase our production capacity.”

40% N efficiency figure floated WHAT’S YOUR nitrogen conversion efficiency?

A dairy farm with a figure of about 40% is probably doing fine but much below that and there may be room to improve, says Waikato Regional Council’s sustainable agriculture coordinator Bala Tikkisetty. “If it is 30% I would say there is still room for management criteria to contribute to an improvement,” he told Dairy News. Tikkisetty floated the 40% figure as a closing comment in an article circulated last week by the council “for farming/rural pages”. It said: “Winter is a time when farmers should take special care to protect profits and the environment from the effects of increased nitrogen leaching” and that “applications of nitrogen fertilisers in winter are generally least effective for promoting grass growth.” Taking account of response rates, which in turn depend on factors such soil temperature, plant growth, soil moisture, deficiency of available nitrogen in the soil and rate of nitrogen fertiliser applied, is important, he added. “Timing of nitrogen fertiliser application is paramount. It is good to apply nitrogenous fertiliser when the pasture cover is 1500 to 1800kg DM/ha. This ensures sufficient leaf area for photosynthesis leading to good pasture growth.” Profitability of applying nitrogen depends on utilisation of extra feed grown “therefore nitrogen needs to be strategically applied to fill genuine feed deficits…. “The best response to N fertiliser occurs on fast growing pasture, when other factors such as moisture and soil temperature are not limiting growth.” – Andrew Swallow

DAIRY NEWS JULY 22, 2014

AGRIBUSINESS  // 27

Testing 30 years take lab owners to great heights IN JULY 1984 a young Waikato scientist left a small soil testing laboratory in Cambridge to launch his own in Hamilton. Roger Hill and his wife Anne’s initial business intention, he says, was simply to “have a go” on their own. Three decades later their Hill Laboratories is the largest privately owned testing laboratory in New Zealand. “When Anne and I established Hill Laboratories, all we wanted was to create an income equal to what we had in my previous job. To our surprise we achieved this in the first 12 months. “Since then Hill Laboratories has gone from being a solely agriculture focussed laboratory with two full-time staff in Hamilton to an internationally recognised laboratory with three major testing divisions and about 330 staff nationwide. “Never in our wildest dreams could we have predicted this success.” For its first two years the business

focussed on agricultural testing. In 1986 it branched into environmental testing and in year 2000 into food and bio-analytical testing. Today, agriculture, environmental and food and bio-analytical remain Hill Laboratories three key testing areas. It is the inclusion of these three markets that has diversified the company, “contributing hugely to our success.” The company now has four sites in Hamilton and two in the South Island – one in Christchurch and one in Blenheim. It also has an office in Japan for overseas samples. Its work is mostly routine testing for domestic and international markets, and occasional emergency testing. “Such a size [means] we are not only engaging in routine testing, we are also agile and able to respond to unforeseen emergencies.” Success has attracted ownership interest from international parties but the Hills intend to keep the business

Hill Laboratories founder and managing director Dr Roger Hill with a photo of him at work in the business 30 years ago.

‘home grown’. “We enjoy being an independent privately owned business. We first involved employees in ownership in 1990, and to this day we are 100% owned by people working here. We anticipate remaining this way.

“The second person we ever employed, Ron Lindsay, had remained with us for the last 30 years and resigned only last month.” In 2010 Hill Laboratories attained the Enviro-Mark Diamond certification

for its Clyde Street lab, the Deloitte Fast 50 award for fastest-growing mature business in the central North Island, and the Westpac Waikato Business of the Year supreme award. Steady growth and success have stemmed from three things. “Firstly we are fortunate to have committed and enthusiastic staff; secondly we maintain a willingness to invest in the latest technology; and thirdly, we have been in the right place at the right time.” “People seem to be increasingly interested in seeing what is in their food and the environment. So I believe we will continue to enjoy growth because of that.” To celebrate the 30 year milestone, the Hills will visit each of the company’s national branches, taking food and festivities with them. Hill gained his PhD in chemistry from the University of Auckland. He was awarded an honorary doctorate from the University of Waikato in 2012.

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DAIRY NEWS JULY 22, 2014

28 //  MANAGEMENT

Aiming to join the SUDESH KISSUN sudeshk@ruralnews.co.nz

HAURAKI CONTRACT

Michael and Megan Webster.

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At a field day on the farm this month the Websters explained their strategy to 100 Hauraki Plains farmers. Michael and Megan co-own Webster Farms Ltd with his parents Richard and Gillian Webster. The farm’s statistics are already impressive: in 2012-13 it produced 967kgMS/ ha, rising to 971kgMS/ ha. This season’s target is 1082kgMS/ha. The P3 Trust says Webster Farms is a financially sound and profitable business, with stakeholders keen to attain the next level of profitability. “They are hardworking, inquisitive, intelligent, well-educated and articulate. These are useful attributes when one is seeking to be in the top 5% profit/ha band.” Megan Webster says they accepted P3’s invitation to become the focus farm for the next three years because of their desire to do better. “You get into the routine of doing the same thing; while things are

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running smoothly on the farm right now, we were keen to give ourselves a challenge and push ourselves,” she told the farmers. The farm’s mission is to “generate a profitable, efficient and sustainable business which maximises shareholder wealth from the production of milk,” she says. The Websters see four key areas – people, feed, profit and animals – needing attention for their vision to become a reality. People come first. “All four areas work in harmony and there are challenges in every area,” Megan says. “However, the foundation is having a great team who will help drive the farm operations from pasture to animal health.” Webster Farms runs as two neighbouring farms, one milking through a 26-aside herringbone, the other a 32-bail rotary. Two dairy production managers and a relief milker are employed. Farm employees have job descriptions.

Rationalising the number of paddocks is on the things to do list.

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THE P3 Trust has identified some areas on the Webster Farm that could be improved; ■■ Consider lowering stocking rate to increase per cow production and feed conversion efficiency and increase profit by about $80,000 (at $7/kgMS payout). This will take more managerial skill and application, but could be financially the most rewarding course. It will have negative consequences if not done properly ■■

Attempt to increase the supply of homegrown feed; alternatively, import more feed if it can be bought at a profitable price. Some infrastructure may be required to allow this

■■

Improve accuracy of pasture monitoring and allocation

■■

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■■

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DAIRY NEWS JULY 22, 2014

MANAGEMENT  // 29

top 5% on the Hauraki Plains it may be considered practice policies onfarm, But no formal outdated due to its age”. a formalised health and orientation has been They plan to document safety plan, six monthly done onfarm in recent performance reviews and animal health policies years because four years and procedures then formal training for staff have passed since a new stick to them daily, and to are also on the list. employee started. create an animal Now the health calendar Websters aim including to write clear “Our aim is to create vaccination job descriptions an environment protocol. for all direct onfarm where wastage The Websters stakeholders. have also set Recruitment is minimised and new targets for and selection opportunities captured.” reproduction: policies will be they aim to lift complied with the six-week when considering On animals, the farm’s in-calf rate from 70% to new team members and 78%, and raise the BCS goal is to lift production formal orientation of target in heifers from 5.0 from 330kgMS/cow to new employees will be 380kgMS/cow. Four areas to 5.5. done and recorded when They acknowledge for attention are animal completed. cash is king; a strong, free health and welfare, They also plan to hold cash flow lessens risk and reproduction, genetic regular staff business gains and quality of young opens opportunities. meetings and to include “To adhere to this all stakeholders; staff will stock grown. principle we are required Michael says the farm be encouraged to actively to evaluate actual results now has a simple animal participate in these and benchmark against health policy that “needs meetings the best,” says Michael. to be expanded on, as Creating best-

Farmers at the Webster Farms field day, Ngatea.

“Our strategic directive in all the following is to be in the top 5% on the Hauraki Plains… creating an

environment onfarm where wastage is minimised and opportunities captured.” Neighbouring farmers

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us”. “By just doing the farm walks with them, we’ve learnt a lot in a short time,” says Michael.

DAIRY NEWS JULY 22, 2014

30 //  MANAGEMENT

Bio-farmers to showcase success at field days Lindsay Road Dairy owner Paul Ashton with his granddaughters Lily Ashton, and Charlotte Ashton on the farm.

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LINDSAY ROAD Dairy, based in Hawkes Bay, is New Zealand’s largest producer of raw milk, selling direct from the farm to 1400 customers. Owners Paul and Christine Ashton ceased supplying Fonterra five years ago and say every year their customer base increases. The Ashtons are a finalist in the Green Agriculture Innovation Awards (GAIA). The winner will be announced in Rotorua on August 6. The Association of Biological Farmers, which runs the awards, says they will showcase how producers around the country are supporting the environment while creating businesses that work. The Ashtons run their farm under a Probitas system, applying trace minerals and bio-inoculants to balance the soil. The pasture management has changed markedly with longer rotations and higher grazing residuals improving plant health. As the natural carbon recycling kicks in, less fertiliser is needed (30% less on this property) and weed and pest issues have reduced. Longer rounds mean standing feed reduces the need for supplementary feed. The cows are no longer drenched or vaccinated, they have free access to minerals and are treated homeopathically when possible. Paul Ashton says milking once a day means the cows have little or no stress, supporting his principle that happy cows produce healthy milk. With raw milk legislation again in view, the Ashtons stand by a regularly tested product they say is shown to be good for human health. The conversion from ‘chemical’ to ‘natural’ faming has required a great depth of knowledge, says Christine Ashton. “This is our passion and love and the more we know the better we get at producing a supreme product for people.” Lindsay Road Dairy produces 5000L per week, supplying 1400 customers direct and supporting three families on the farm. The Ashton’s next step is to support other farmers to follow their lead

so the raw milk market continues to grow, and to help others develop a belief that a sustainable lifestyle can be rewarding and profitable. The Association of Biological Farmers is bringing Australian grassland scientist Dr Christine Jones – ‘the carbon goddess’ – to speak at the field days and awards nights at Rotorua on August 6 and Christchurch August 8. Event organiser Nicole Masters says this is a good opportunity to network and celebrate New Zealand agriculture at its best – “farmers applying good old number-eight thinking and commonsense practices, of the kind our country was founded on” The awards are the first of their kind in New Zealand. Masters says the award judges are impressed by the variety of entries from large scale sheep and beef farmers, beekeepers, grape growers and dairy producers. “The judges noted a common theme among entrants: passion and determination to make a difference.” Producers who have changed from conventional farming are said to be pleased with the results. Pastoral winner David Crutchley, Shortlands Station, has seen profits triple as nutrient efficiencies and animal health have risen, Masters says. Producers find that a focus on soil and pasture health leads to multiple bottom line benefits, “relevant in this age of intensive farming with high demand put upon the land and water”. “The benefits of farming for the soil’s health far outweigh any skepticism. [Producers see] far greater nutrient content, better quality stock and crops and fewer negative inputs to the environment, all with financial gain to the producers. “One farmer has seen young cattle deaths drop from 15-20 per year to fewer than one per year. Others reap the rewards of reduced water run-off and the elimination of routine drenching. Consultants have growing client bases and ever increasing demand on their skills,” Masters says.

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DAIRY NEWS JULY 22, 2014

32 //  ANIMAL HEALTH

Key dairy cattle coded GROUNDBREAKING RESEARCH into Hol-

stein Friesian, Jersey and other cattle has discovered a “perhaps surprising” amount of genetic variation given the selection pressures breeders have applied over centuries. An interim report on the 1000 bull genomes project released this month in Nature Genetics relays findings from sequencing 232 bulls and 2 cows, including 129 “key ancestors” from the global Holstein Freisian population, 47 Angus, 43 Fleck-

viehs and 15 Jerseys. “A large proportion of the chromosomes in modern dairy cattle populations can be traced back to these ancestors—72.3%, 43.3% and 55.3% of the chromosomes in the modern Australian, French and Danish Holstein populations, respectively,” the authors note. A total of 28.3 million variants were found among the 234 cattle sequenced. “This large number of variants is perhaps surprising given the recent

Bevin Harris, LIC.

reduction in effective population size in the B. taurus indi­viduals sequenced here,” they add, alluding to the contraction in bulls

used since artificial insemination became widely used. The 1000 bull project and similar work, including in New Zealand, promises to accelerate the rate of genetic gain in dairying and help weed out rare recessive disorders that cause animal health and welfare problems. “It’s an important paper demonstrating this can be done,” LIC’s science leader genetics and genomics Bevin Harris told Dairy News. While it appears no

A report says a large proportion of the chromosomes in modern dairy cattle can be traced back to some ancestors.

New Zealand bulls were among the Australianlead work giving rise to the Nature Genetics paper, Harris says LIC will be

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providing some germplasm to the project as it continues. Meanwhile, with the help of PGP funding, LIC has just finished a similar sequencing of 550 New Zealand sires, though it will probably be a year before all the data from that has been analysed to the level of the work reported in Nature Genetics.

made in selection for the trait. “And sometimes those associations get broken. With sequence data if you’ve got the source of a trait, you’ve got it: there’s no association to be broken, or strength of association to be worried about.” It will mean greater certainty and accuracy in bull selections, but for

The 1000 bull project and similar work, including in New Zealand, promises to accelerate the rate of genetic gain in dairying and help weed out rare recessive disorders that cause animal health and welfare problems. The sequencing is a step forward from current SNP Chip techniques because it details every part of the DNA as opposed to blocks of it, Harris explains. “Now you get the entire three billion pieces of information in the bovine genome in front of you.” With SNP chips, traits are “associated” with the chip and the strength of that association will dictate the rate of progress

farmers to reap the benefits they will need accurate records of their herd’s parentage too, Harris stresses. CRV Ambreed’s genetic strategist Phil Beatson told Dairy News he too expects the research is “likely to be influential in years to come” given the authors “are a large group of eminent scientists from several key research institutions and universities” and the work is published in Nature Genetics.

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DAIRY NEWS JULY 22, 2014

ANIMAL HEALTH  // 33

Accurate and quick test for oestrus THE RELEASE around the world of an accurate test for oestrus (or bulling) in dairy cows heralds a major advance for dairy farmers’ breeding programmes, says distributor Farmtest Ltd. The test known as P4 Rapid is a simple milkbased test that indicates whether a cow is cycling. This test takes five minutes, or the time a cow takes to milk. Farmtest says the test measures the presence or absence of the hormone progesterone. The absence of progesterone indicates the cow is in oestrus and can be mated. Insemination by AB when a cow is not in oestrus wastes the insemination, can cause infection or in the case of a pregnant animal, abortion. “The test entails taking a small sample of milk in a palm of a clean, gloved hand and using the small pipette supplied with the test to transfer a defined quantity of milk to a small test tube,” it says. “The dipstick, after being identified with the cow number and date, is inserted into the tube. After five minutes, the dipstick indicates with one line that the test is working. If a second line is present and at the same intensity as the test line, no progesterone is present and the cow is in oestrus and can be mated. Used dipsticks can be kept as a record.” Farmtest Ltd is a new company formed by animal health entrepreneur Colin Harvey. Harvey says the test will only be sold by veterinary practices and farmers are encouraged to discuss P4 Rapid test kit.

with their vet its use in mating programs. He says use of the test in research at Massey University has shown it is a simple aid to assist confirmation oestrus by other methods of detection. It also aids detection of animals that do not show strong behavioural signs of bulling when in oestrus. The test, when used by milkers aids judgement, and the quick feedback trains staff in being able to reliably detect when cows are bulling. It is best used with a planned approach to mating. With veterinary advice the test may also be used access the status of cows that have not been detected in oestrus, or may not have started cycling. After the first round of mating, cows that have not shown oestrus can be tested. A retest every second day for four days or after 10 days, will show whether oestrus is occurring or not. This will allow decisions to be made if treatment is needed for non-cycling cows. Also cows that have been mated should be observed after 21 days for return to oestrus. If there is doubt, the test can be used to detect if the cow is cycling or is pregnant. This avoids presenting cows for AB when insemination may cause damage and also confusion over parentage which can lead to costly genetics tests. The test is also a useful aid in artificial mating programs to confirm that drugs are having the required effects. The P4 Rapid comes in boxes of 25 tests with

pipettes, test tubes and dipsticks. The kits have a shelf life of two years at room temperature. The test kits of 25 tests will retail for around $7 per test, meaning if less than 10 inseminations are saved

Colin Harvey says P4 Rapid is a simple milk-based test.

a year, the kit is paid for. Supplies of the test will be limited this season due to the demand internationally. An early order placed with your vet will avoid disappointment. Tel; 021952988

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ACROSS 1 Quickly 4 Lessen 6 Slip back 10 Measurement of size 12 Proven Oral Calcium name 13 Intestines 15 Hypocalcaemia 16 Oil in water 17 Ability to take in 21 Impediment of disease 23 Soft actions 25 Well being 27 Dracula’s main food 28 Cautious 29 Danger 30 Cow shed

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DAIRY NEWS JULY 22, 2014

34 //  ANIMAL HEALTH

With nutritionals ANDREW SWALLOW andrews@ruralnews.co.nz

Keeping it simple: DairyNZ’s John Roche handles a mineral supplement question from a SIDE delegate.

TAKE YOUR vet’s advice on mineral needs for your herd but push back if they start peddling pricey products. That was the typically blunt advice from Dairy

NZ principal scientist, animal science, John Roche, at last month’s South Island Dairy Event. “If they say ‘use a chelated or hydroxy product’ you push back and say ‘No thanks, I’ll use inorganic’,” he told delegates during a workshop headed ‘Mineral

Supplements – The KISS Principle’. By way of introduction, Roche had quipped the KISS acronym – Keep It Simple Stupid – was probably directed at him. “Do cows need minerals? Overwhelmingly the answer is yes. But as with all things nutritional the devil is in the detail,” he warned. Of 25 minerals known to be essential to animal production, 18 are considered trace elements and seven macro nutrients (see sidebar).

copper so cows on winter crop eating a bit of soil can become copper deficient. Similarly molybdenum and sulphur form insoluble complexes with copper affecting uptake. “All your pasture will have over 0.3% sulphur and one part per million molybdenum (sufficient to cut copper absorption) and are your cows eating any soil? Of course they are!” Consequently Roche and Dairy NZ’s advice is to routinely supplement with copper sulphate at

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“Test the cows you’re keeping, not the ones that are going to the works.”

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“I shall focus on the trace elements because that’s where most of the confusion and complexity seems to arise.” Part of the problem is there is “virtually no independent research done on minerals now. Almost every paper written is funded by a company selling minerals,” Roche said. That doesn’t mean the science can’t be trusted – “a lot of the research that is commercial company funded is very, very good,” – but it’s what does and doesn’t get published that’s the problem. “You really, really struggle to publish papers that show their product in a negative light. They’ll let you do it but they make it very hard to do.” Much of the research presented to support mineral sales is done on cows fed total mixed rations so extrapolating results to pasture is also questionable, Roche added. Of the 18 trace minerals, only five are likely to be deficient in pasture-based diets: cobalt, copper, iodine, selenium and zinc. Deficiency may simply be due to not enough in the diet, but interactions with other minerals and vitamins can mean animals can’t absorb enough from what appears to be an adequate amount in a diet. For example, iron blocks absorption of

1-2g/day/cow through water in early lactation, or with a 20g copper oxide bullet, or an injection. But of all the traces, copper is the one most likely to become toxic in excess so care is needed to take account of all sources of the mineral: feed (notably PKE), water (some sources are naturally high copper), and fertilisers, when working out if and what to supplement with. Cobalt is more contentious, as very little is needed for rumen microorganisms to produce enough vitamin B12, which is the main use of the mineral. However, higher intakes than required for B12 production can enhance fibre digestion, hence Dairy NZ’s recommendation is to supplement with 8-10mg of cobalt/day. Iodine is vital for energy (via the thyroid), the immune system and reproduction but it is highly soluble and pasture content is very variable. Goitrogens in crops such as brassica prevent iodine uptake and put cows at particular risk of deficiency so supplementing during wintering and the first four months of lactation is recommended. “You can put it into the system very cheaply,” Roche noted. Simply spraying the sides of each cow once a week when on crop

DAIRY NEWS JULY 22, 2014

ANIMAL HEALTH  // 35

the devil is in the detail with 7ml of 5% iodine solution is enough precalving. Post calving supplementing with 10mg/cow/day is recommended, though it’s possible enough may be absorbed from iodine teat sprays. The two traces Roche expressed “real doubts” about supplementing with were selenium and zinc. “New Zealand studies indicate 0.5mg/day of selenium is enough to

maximise production but in the northern US they’re recommending 5mg/day.” But many areas of New Zealand are known to be selenium deficient and, unless using an organic source, the mineral is very cheap “so do it,” he added. The exception would be on high selenium soils, especially where higher selenium feeds such as brewers’ grains or oilseed by-products are being fed. Cereal by-products

are also high in zinc, and PKE is reasonably high too, so must be taken into account when looking at that mineral. Pasture content is very variable farm to farm and paddock to paddock but testing can be worthwhile to find potential problem paddocks/areas. Supplementing with 500-750mg/cow/day of zinc is recommended – about 1g zinc oxide or 2-3g zinc sulphate – but the

caveat is to beware of the high zinc feeds mentioned and risk of inducing copper deficiency. Overall, and in general, Roche and Dairy NZ’s recommendation is to supplement pasturebased diets with these five key trace elements for the first six months of lactation when they’re in highest demand and to replenish cows’ stores. “There are some very

good trace element mixes that can be put in for 2-3c/ cow/day.” Work with your vet, and if taking liver tests to check copper status, “test the cows you’re keeping, not the ones that

are going to the works,” he stressed, as the latter could have abnormal levels for a whole host of reasons which may not be typical of the herd. Bloods give a pointin-time picture but won’t

tell the whole story with copper and selenium, he added. “Use your vet to diagnose and make a plan but what product to use is where you have to be strong,” Roche says.

TWO, MAYBE FOUR, MACRO NUTRIENTS ROCHE’S SIDE paper also covers the macro nutrients, calcium, chlorine, magnesium, phosphorus, potatssium, sodium and sulphur. Sodium can be short if a third or more of feed is a low sodium source such as cereal grain, and dietary phosphorus may be inadequate on fodder beet, but other than that calcium and magnesium are the two macros to watch. “Magnesium is probably the most important mineral in the diet of the grazing dairy cow,” states the paper. “It is essential in almost every biochemical reaction in the body, not to mention its role in

nerve and muscle function and bone development.” Dairy NZ recommends magnesium is supplemented at 20g/cow/day from 2-3 weeks pre-calving to four months into lactation. That’s provided by 40g/ cow/day of mag’ oxide, 200g/ cow/day of mag’ sulphate, or 140g/cow/day of mag’ chloride. The paper says there’s little research on chelated magnesium and while it probably is absorbed more quickly and may be excreted slower, “the amount of magnesium supplied by these products is unlikely to protect a cow during

early lactation,” it warns. As a rule, calcium should be supplemented during the colostrum period with up to 300g/cow/day of limeflour dusted on pasture or through a molasses lick. Lower level supplementation through in-shed feeding “may not be sufficient to prevent milk fever, particularly in at risk cows, ie old, jersey or jersey cross, and cows at >BCS 5.5.” Once into lactation calcium supplements are only likely to pay if large amounts of low calcium feed such as maize silage or cereal grain are used.

Trace element recommended intakes and sources

Element Cobalt Copper Iodine Selenium Zinc

Total intake mg/day

Possible supplements

% mineral content

10 350*

Cobalt sulphate Copper sulphate Copper oxide Potassium iodide Sodium selenite Sodium selenate Zinc sulphate Zinc oxide

25 25 80 70 46 40 30 75

10 5 750

* NB figure for Holstein-Friesians. Jerseys more prone to toxicity so cut dietary copper intake to 250mg/day. Source: adapted from Roche J, SIDE 2014, Mineral Supplements – The KISS Principle.

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DAIRY NEWS JULY 22, 2014

36 //  ANIMAL HEALTH

Supplements and CSR COMPARATIVE STOCKING rate (CSR) provides a useful means of assessing the balance between feed supply and demand for a dairy farm. It is calculated as: Comparative stocking rate = Average liveweight (kg/cow) x No of cows/ ha/Total feed (t DM/ha). Average liveweight is the average weight of all cows (including first calvers) two months prior to calving, and total feed includes pasture, crops and bought-in supplements (including off farm grazing). To optimise profitability, research suggests farmers should run a CSR of 75-80kg liveweight/tDM offered1. If CSR is too high then cows are underfed, a large proportion of feed goes into maintenance rather than milk production and per cow costs are high relative to per cow returns. On the other hand if CSR is too low, feed supply is too high relative to cow demand. In this situation, cows may eat supplements at the expense of

pasture which results in the quantity and quality of pasture harvested falling. While CSR is a useful measurement, one of its major limitations is the fact that pasture supply, one of the key drivers, can vary significantly between years. Measured pasture yield from a Waikato dairy farm averaged 14.6 t DM/ha/year but varied from 11.5 to 18.6 t DM/ha/year2. If we assume a stocking rate of 3 cows/ha, an average cow weight of 500 kg and a supplementary feed input of 5 t/ha, CSR would vary from 64 -91 between the highest and lowest pasture growing seasons. This example illustrates that while your average CSR can be ideal, variations in pasture production mean you can be seriously under- or over-stocked in some seasons. Some farmers do a feed budget at the start of the season and work out how much supplementary feed they require. However, this does not solve the problem of getting the right CSR

Pasture Production Year High

Average

Low

Cow weight per hectare (kg)

1500

1500

1500

Pasture yield (†DM/ha)

18.6

14.6

11.5

5

5

5

23.6

1.96

16.5

64

77

91

Supplement input (†DM/ha) Total Feed CSR (kg liveweight /†DM offered)

Table 1: Estimated CSR for a Waikato dairy farm for a high, average and low pasture production year.

Some farmers do a feed budget at the start of the season and work out how much supplementary feed they require. because of the potential variability in pasture growth. In a very dry year, if a farmer was targeting a CSR of 77, he would have needed an extra 3.1 †DM/ha supplements (above the 5 †DM/ha already planned) to make up for the shortfall in pasture growth. For a 140ha farm that is a massive 434 †DM of extra feed. Most farmers buy in additional feed on the spot market when the grass

doesn’t grow. This approach has a few potential pitfalls. Supply can be short, delivery is often slow and inevitably the price rises especially if the feed shortage is widespread. A better approach is to carry a buffer of stored feed on-farm. Maize silage is the ideal option because it can be grown cost-effectively and stored until it is needed. In most situations the interest cost of carrying-over maize silage for

two years is about 2 cents/kgDM. So as we kick off the 2014-15 season, I urge you not only to do a feed budget and calculate your CSR, but also to consider how much additional feed you will need if the grass doesn’t grow quite as well as we all hope it will. 1 DairyNZ 2013. Farmfact 1-4a Comparative Stocking Rate (CSR): Definition and link to farm performance and Operating Profit. 2 Pasture growth data provided by Wayne Reynolds. • Ian Williams is a Pioneer forage specialist. Contact him at iwilliams@ genetic.co.nz

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DAIRY NEWS JULY 22, 2014

CALVING  // 37

Auto feeder eases stress, saves time MATAMATA FARMERS Simon and Joanne

Belton feed their calves with a Lely Calm Vario+ two-station automatic calf feeder, and they say it saves them time and gives their calves all the nutrition they need for optimal growth. Beltons run a 73ha (eff) farm, with 330 cows calving twice yearly, once in autumn and once in spring. They raise 30 replacements in each calving; the Calm Vario+ can feed up to 45 calves per station. It was instaklled in 2013. They previously fed using calfeterias either hanging in the sheds or taken to them in the paddocks. Joanne says changing to twice yearly calving prompted them to switch to the automatic feeder. “Rearing calves was a big time commitment. I work off-farm as well, so time is important and making sure all the calves were getting their ration is imperative. “With the automatic feeder, every calf will get their entitlement of milk and those calves that gorge will not benefit from another calf’s entitlement. The system even warms the milk for the calves so it always gives the calves a consistent nutritional feed at the correct temperature. “These features should give us the ability to raise a more even line of animals. With the manual systems

the older calves are quite a bit bigger than younger ones, as they tend to get the bigger and better feeds by either pushing the smaller animals around or just being greedier.” Joanne says the calf feeder has produced more even growth rates in the calves this year, and this was the main reason she and Simon bought the system. “Through the first calving using the calf feeder they went through less milk powder as there is less wastage. “We only mix portions at the time the calf registers for a feed, and her portions are only mixed 500ml at a time. “Because there is a more even growth amongst the calves, we will end up feeding the later calves for a shorter period than usual to get them up to size, as the earlier calves don’t have access to the later ones’ feed with this system.” The reduced labour demand has been a huge bonus. “The time it takes has reduced dramatically,” Joanne says. “It took only a day or two to get the calves used to the system and now it is just a matter of checking the alarms and entitlements for any irregularities, sorting out any issues and topping up milk powder or colostrum, whatever your choice of feed is. “I can now call into the

sheds in my office clothes at the end of the day and check everything is okay. If it is, I can go home for the evening. No need to get changed into farm clothes and go out. “This isn’t to say that I

don’t spend time with the calves. I still have contact with them when putting other supplements out to them, and they are just as friendly as they were on the more manual system.” www.lely.com

Simon and Joanne Belton with their Lely calf feeder.

The Lely Calm Vario can feed up to 45 calves per station.

DJ2891_SW_dairy_news_280x187_v2_ol.indd 1

2/07/14 9:05 AM

DAIRY NEWS JULY 22, 2014

CALVING  // 39

Good nutrition tips to help calving season WITH CALVING

season underway, the Dairy Women’s Network (DWN) and SealesWinslow have teamed up to educate dairying women on good calf nutrition. Ballance AgriNutrients, through its animal nutrition business SealesWinslow, is running interactive calf nutrition days in various locations. Mike Stephens, dairy category manager for Ballance Agri-Nutrients, says the sessions are aimed at practical, hands-on skills to raise healthy calves and, in the long term, build healthier and more profitable herds. “As part of each session a nutritionist will talk about achieving

genetic potential and profitable replacements in order to get the most out of animals in a herd,” says Stephens. “They will also talk through successful rumen development and

contamination, watching calves’ navels ( joint ill), how different types of electrolytes work, what vaccinations actually do and the importance of hydration during scouring.

“We know that calving is typically a stressful time on a farm.” early weaning, targets and growth rates, and what makes a good calf feed.” A vet will present some of the more common problems experienced during calving and how these issues can be avoided. These include hygiene of the pens, stopping cross

“We also know that calving is typically a stressful time on a farm, so we’ve put together a package of support to help dairying women get through this time. “The female business partner generally plays an important role during calving, so we see this as an important way

we can add value to dairying women. This is a great opportunity for DWN members to use the experience and expertise of trained animal nutritionists, and re-look at what can be done or done better to improve calf nutrition,” said Stephens. Dairy Women’s Network chief executive Zelda de Villers says the network is pleased to be part of this initiative. “This is a great way to support our members. It will set them up to be well prepared for the upcoming calving season.” The workshops started on June 26 in Te Aroha and finish July 29 in Invercargill. Tel. 0800 396 748 www.dwn.co.nz

The workshop will include hands-on skills to raise healthy calves.

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DAIRY NEWS JULY 22, 2014

40 //  CALVING

Give her the best possible start TO SET a dairy cow up for a long, productive life you must give her the best possible start, says DairyNZ. Extra effort now will pay dividends through-

out her milking life; well grown heifers make much more successful milking cows and growing them well starts from the day they are born, it says. In the first few hours

(replacements and bobby calves) calves need to be fed high quality colostrums; all calves, including bobby calves must receive adequate fresh colostrum within the first 12 hours

of life and should be fed colostrum, or a colostrum substitute, for at least the first four days of life To get enough antibodies, calves should receive at least 12% of their live-

Calves should be kept in a safe and sheltered enclosure.

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ing sharp objects.” Regular health checks are also a good idea. Calves must be checked twice daily for signs of ill-health and treatment given if any fall ill; have a health checklist and recording sheet available. Ensure good routine hygiene practices; scrub all feeding equipment well with hot water and detergent daily. Each farm must have a biosecurity plan for the calf shed. Calves are vulnerable to disease and need regular health checks, including navels; the isolation or sick bay area should be well separated from other pens with separate access to reduce cross-contamination. Each calf shed must have its own recording system. DairyNZ recommends having a system to track individual calves that need extra checks, and sick calves being treated e.g. a whiteboard or blackboard; all treatments must be recorded.

FEED YOUR CALVES WELL In the first few days and weeks (replacements): ■■ Feed calves well to rapidly achieve weaning weight with a well developed rumen ■■ Calves should be fed at the same times each day to minimise stress ■■ As well as milk, or milk replacer, always have grain-based meal available as this helps speed the maturity of the rumen and allows earlier weaning. Provide good quality hay as well (not essential but it helps). ■■ Ensure your calves have access to clean drinking water at all times.

Check out our websites

EVOLVE.

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weight in good quality colostrum within the first 12 hours of life, preferably in the one feed (that is 3.5L for a 30 kg calf). DairyNZ says calves must be handled gently and with care at all times. “Do not allow anyone to throw, hit or drag a calf at any time; electric prodders must not be used on calves. Calves should also be provided with shelter, it says. “All calves, including bobby calves must be protected from extremes of weather, especially wind, rain and cold at all times. “Calves that are not with their dams must be provided with shelter so that they can stay warm and dry. They should be moved to a dry, clean and sheltered enclosure as soon as practical after birth “Keep calves in a safe and sheltered enclosure at all times. There should be minimal risk of injury to either animal or human e.g. from slipping or strik-

www.ruralnews.co.nz www.dairynews.co.nz

innovators in agriculture

DAIRY NEWS JULY 22, 2014

MACHINERY & PRODUCTS  // 41

Feed wagons get smarter, harder Marcus Grenell with the new feed wagon.

GARETH GILLATT

A NEW generation of SAM feed wagons are smarter and tougher than ever, says Coombridge and Alexander Operations Manager Marcus Grennell. The Hamilton farm machinery maker unveiled its new logo and a series of improved feed-out wagons and fertiliser spreaders at the recent field days. Grennell says the new models raise the bar on feed efficiency and durability. Tongue and groove timber floors have given way to 22mm Trans-Tex plywood sheets, a type of plywood used in the marine and truck industry known to handle high-

impact drops and to resist bending. The company’s fertiliser spreaders include an arc-spray galvanised chassis - this improved paintwork, together with the use of more stainless steel and ‘hot dip’ galvanised material, helps to provide end-users with an extremely durable machine. Optional remote

axle greasing on all SAM machinery improves grease point access and maintenance. SAM has “stuck with what it knows best” – building feed-out wagons, trailers and fertiliser spreaders, and adding improvements gradually based on customer feedback and on-farm research. Some customers are

known to have owned the same one or two SAM Feed Wagons throughout their entire farming careers, Grennell says. Buyers can choose between a belt sidefeed conveyor, ideal for maize and palmkernal or chain side-feed conveyer, the chain option reducing maintenance requirements whilst improving flow with longer cut feeds. Other options include weigh scales with frontmounted Iconix display units providing the operator with simple and accurate electronic weighing of feed quantities. Tel. 07 847 8492 www.sammachinery. co.nz

George Fleming (left) and David Williams at the field days.

Partnership works NORTHERN IRELAND machinery maker Fleming Agri-Products Ltd hung out its shingle at the recent Waikato field days, joining forces with local importer Toplink Machinery Ltd. Fleming, in the business 150 years, is said to make 140 different products for export to UK, Europe, South Africa, North America, Australia and now New Zealand. The range includes tipping trailers large and small, frontloader attachments, yard scrapers, tub feeders, effluent handlers such as muck spreaders, and shear grabs and rakes and windrowers. An 8 tonne tip trailer on the site is available on single or double axles. Optional extras include hydraulic brakes, swivel draw bars and auto latch

tail gates with spreading chains. Sides fold down and a deck extension is available for carrying round and conventional bales. Trailer sizes of 2, 4, 6, 8, 10 and 12 t are available in New Zealand. Fleming spokesman George Fleming, said “Working with David Williams and Toplink we are building up our stock range and increasing our reach so we can give prompt delivery which we pride ourselves on in other markets.” Good value for money and performance are the distinguishing marks, he said. Toplink Machinery national sales manager David Williams pointed to Fleming’s five stage, oven baked painting as evidence of its concern for quality. Tel. 07 871 7395 www.toplink.co.nz

DAIRY NEWS JULY 22, 2014

42 //  MACHINERY & PRODUCTS

Scales, data collectors lock in weights super-fast THE LATEST versions

of Gallagher’s W610 and W810 weigh scale and data collectors offer faster livestock weighing and improved connectivity, the company says. Product manager Dan Loughnane says the new generation models are better designed and more user-friendly because of customer feedback where the work is done. “The W610 and W810 are tried and proven products, but we are always on the lookout for ways to make yard

work more efficient and effective.” He says the newversion models lock in weights much faster. Both have a ‘maximum speed’ option relevant especially to the sheep market, enabling weights to be locked in three times faster than the standard weigh option. “This feature especially suits the growing number of sheep operations using automated drafters. It enables farmers to more

Animal weights are locked in much faster.

quickly weigh large numbers of stock.”

The weigh scales’ connectivity is also

improved, allowing connection to an android

device via Bluetooth. Using Gallagher’s free animal data transfer (ADT) app, farmers can extract session files from the scale and send EID data directly to NAIT. They can also attach the full session data to an email or upload straight to a web-based database system such as AgHub. The ADT application is available from the Google Play store. Both models come with Gallagher’s Animal Performance Software (APS Standard), with a largely icon-based menu system that speeds viewing, evaluating and sharing current

and historical animal information. Operating features include backlit screens, raised keyboards and ergonomically operated switches and buttons. These units can connect to any brand of EID reader and are capable of storing weight readings from many thousands of animals. Additional livestock management information, such as average daily weight gain and carcase weight, can also be calculated and displayed automatically when an animal is weighed. Tel. 07 838 9800 www.gallagher.co.nz

Backlit screens and raised keyboards are some of the new features.

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DAIRY NEWS JULY 22, 2014

MACHINERY & PRODUCTS  // 43

The TSi 2 is ideal for sending information to third parties.

Livestock data gets turbo boost in touchscreen unit GALLAGHER SAYS its new TSi 2 Livestock Manager is faster and smarter than its ground-breaking SmartTsi launched in 2008. The only touchscreenoperated integrated weighscale, computer and animal management system on the market, the TSi 2 Livestock Manager has a processor twice as fast as the previous unit. Product manager Dan Loughnane says the company talked at length to farmers in developing the TSi 2. “It has much more memory and power and this means it can quickly store, analyse and transfer animal data in the yards.” It also locks in animal

weights much more quickly send information directly during weighing sessions. to third parties such as “For example, the new fast NAIT.” Higher processing speed weigh feature is designed specifically for weighing and memory make it easy for farmers to find sheep and enables information weights to quickly and be locked with miniin 2.7 times mal fuss. faster than The in stanTSi 2 can dard mode. store at least This allows big The TSi 2 can store 1 milincreases in million animal records. one lion animal stock throughrecords, allowing the entire put.” Another key improve- life history of animals to be ment in the TSi 2 is WiFi saved for on-farm viewing. It is supplied with connectivity, allowing Animal animal data to be imme- Gallagher’s Software diately transferred to the Performance web. “This is ideal for farm- (APS Professional valued ers who want to quickly at $1378 inc GST).

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Like the SmartTSi, the TSi 2 is ruggedly constructed. It can be integrated with loadbars, EID readers, auto drafters and other management software. It has an outdoor-readable touchscreen with large buttons and an intuitive user-interface. Gallagher marketing manager Mark Harris says the TSi 2 helps farmers take the guesswork out of major farm policy decisions. “It’s a simple way to comprehensively monitor animal performance under different feeding and treatment regimes.” Tel. 07 838 9800 www.gallagher.co.nz

DAIRY NEWS JULY 22, 2014

44 //  MACHINERY & PRODUCTS

United we stand FARM MACHINERY

Pottinger Novacat disc mower. One of the many machines distributed by the Origin Agroup.

co-op Origin Agroup is celebrating its tenth anniversary. Set up in 2004 by independent farm machinery retailers, it imports and distributes gear to its member shareholders. Its ten years have seen “formidable growth and

firm positioning of itself and its products in the market,” says managing director David Donnelly. This rapid growth and expansion would not have been achieved by any other business model, he says. “We knew we needed this point of difference. Quite simply our success

PPP Feed Systems are specifically designed to handle PKE - guaranteed PPP have Installation Agents from Northland to Southland offering a full back up service Silos Grain silos from 6 tonne to 250 tonnes PKE vibrators – money back guarantee to work! Suitable for PKE, dairy meals and grain Mineral & liquid additive system Utility Augers

Herringbone Feed Systems Stainless steel ensures hygiene is excellent One dispenser per cow, clear dispenser allows plenty of light in shed Non-breakable drop tubes with no blockages in drop tube Sheds from 10 aside to 73 aside, using PKE to dairy rations Feed rates as low as 0.5 kg upwards

Rotary Feed Systems Stainless trays, anti-robbing bars Single or multiple auger lines Liquid injection Mineral additive line suitable for EID systems

Press Screw Separators A simple solution PPP installed NZs first separator in 2002 Clarifiers available for extra screening down to 80 microns

is because we adopted a cooperative business model with cooperative principles and ethos which fairly represents the shareholder members and their customers’ interests. “Cooperatives are founded on strong values, and we put them into practice every day. With relationships built on trust, co-ops enable the member owners, customers and suppliers to work together to serve everyone’s needs.” Donnelly believes that trust is the glue that holds the member owners together. “It’s vital to the success of Origin Agroup as we create and develop

products directly from overseas manufacturers on exclusive market distribution agreements. The pricing is competitive and the products good quality, Donnelly says. Its European brands include Pottinger cultivation, seeding and harvesting equipment; Alpego power harrows, rotary hoes, mulchers, seed drills and subsoilers; Dal-Bo Cambridge rollers and disc harrows; Manip tractor front end loaders; Bogballe fertiliser spreaders; HatzenbichleR air seeders and harrows; and Tatoma mixer wagons. Donnelly says the

“With relationships built on trust, co-ops enable the member owners, customers and suppliers to work together to serve everyone’s needs.” long-term relationships with our customers and suppliers from around the world. “Our objective is to ensure New Zealand farmers and contractors get the best possible equipment, that the machinery they need will be available when they need it, and that they will be well looked after by the members of the cooperative with service and parts when they need them most.” The group imports its

group is poised for further product and distribution expansion and is here for the long haul, Donnelly says. “It was a logical decision to provide the industry with an alternative supply of products and services… which could look after its retailers, with exclusive products, more fairly. The co-op structure is a proven business model which achieves this. Tel. 07 823 7582 www.originagroup.co.nz

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Origin Agroup managing director David Donnelly says its co-op model has boosted growth.

DAIRY NEWS JULY 22, 2014

MACHINERY & PRODUCTS  // 45

Cow rumen modifier ticks all the boxes SUDESH KISSUN sudeshk@ruralnews.co.nz

A UNIQUE COW rumen modifier, Rumenox, has completed its first year on the market, and its manufacturer is overwhelmed by the reception from farmers. Glenmark Veterinary Ltd managing director, Derek Moore, says farmers asked for a product that was easy to use, minimised wastage and did the job; Rumenox ticks all the boxes, he says. It works with the microorganisms in the cow’s rumen, allowing more efficient diges-

to digest their feed more efficiently. It does this by producing more energy from the feed consumed. This provides bloat control, reduces ketosis and increases milk protein production, says Moore. GVL was set up in 2012 by Moore, scientist Dr. John Munro, who is the technical director and was already working on this technology, and South Island-based General Manager, Aaron Gill. The company started by looking at similar products in the market. “There weren’t too many new products; there were only tweaks

Derek Moore

John Munro

tion of feed. Launched in July last year, Rumenox is a dry flow granule product containing the active ingredient monensin - a common ingredient used successfully in global agriculture, especially in cattle. Moore says GVL has used a highly purified form of the active ingredient, which is produced through fermentation. “It’s not a new ingredient; what we have done with it is new,” he says. Rumenox adjusts the rumen’s microbial population by allowing cows

and slight differences between the available products,” says Moore. “We were excited because our product was new and patentable.” One of the important discoveries during development, and an element of the patent was that Rumenox is more soluble in water than any other product in its class. The company received funding from Callaghan Innovation, then known as Ministry of Science and Innovation. Moore says this was a nice tick from an outside organisation. Moore says when GVL

went out to meet farmers, they were told that other products to improve cow rumen functions were lower concentration liquids. “And there were fundamental difficulties around measuring, mixing and dosing them,” he says. “We went out and asked farmers what they wanted; the answer was ‘we want something easy to mix, that doesn’t waste and does the job for us’. That’s how Rumenox evolved.” Rumenox is used in two ways: it can be orally drenched or given to cattle through metered dispensers in water troughs. It is designed to suspend in water very rapidly and remain stable in solution; the granules allow for clean mess-free dosing with nil wastage. “The effects of Rumenox continue in the rumen for more than 24 hours, so it provides continuous protection for bloat,” he says. “Also, the way it assists rumen fermentation makes more energy available to the cows; that’s where the ketosis control plan comes in.” “In springtime when cows are fundamentally short of energy, they get more energy out of the feed they consume by using this product. This reduces instances of ketosis quite effectively. From a disease control point of view that’s a real benefit. “The other effect of producing more energy is a precursor to more protein production, so you end up getting increased protein production from

cows as well.” Rumenox is only available to farmers through veterinary practices. Moore says this was a conscious decision. “Vets have the ability to expertly assess these products. They don’t accept any-

thing technically average,” he says. Moore says sales from the first year have been excellent. “It has exceeded our expectations. It is a product that does what it says it does, and farmers have confidence in it.”

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DAIRY NEWS JULY 22, 2014

46 //  MACHINERY & PRODUCTS

Electric heart for new Kia Soul KIA MOTORS’ second

electric car – the Soul EV – is good for 212km on one charge, 60% greater than some competitors’ vehicles, the company says. Now in volume production, it will at first sell in a left-hand-drive version, the first Kia electric on sale outside Korea. The company chose to install an electric motor in an existing vehicle – the Kia Soul. Power comes from a 192-cell, 27kWh lithium-ion polymer battery pack. It plugs into any household power point for recharging in five hours for a fully depleted battery, using a 6.6 kW AC slow charger. An 80% charge can take 25 minutes with

a 100kW charger or 33 minutes with a 50kW DC charger. The first Soul EVs will go on sale in selected European markets, then more widely in the second half of this year. Currently it is available only in left-hand drive, but should a right-hand-drive version become available, Kia Motors New Zealand says it would be “very interested” in bringing the Soul EV here. “The technology employed in the all electric Soul is industry-leading… and we’d love to be able to bring it to New Zealand,” says Todd McDonald, general manager of Kia Motors New Zealand.

“It’s the first practical all-electric vehicle for use in everyday life in New Zealand without being seriously constrained by the range available on a single power charge. Until now, electric vehicles have been mostly of academic interest, but the Soul EV could turn out to be a game changer.” Price-wise it is expected to be competitive against other electric vehicles. The Soul EV is made at Kia’s Gwangju factory in Korea; intended output is 5000 units. It is being launched as part of Kia’s ‘Clean Mobility’ programme. Kia Motors has for three years sold an elec-

tric vehicle called Ray EV in Korea. The new electric Kia Soul EV has gone into production at Kia Motors in Korea.

HITS 100KM/HR IN 11.2 SECONDS KEY COMPONENTS in the Soul EV are 200Wh/kg cell energy density, a new heat pump, ‘smart’ air intake control system and a new individual ventilation system that ensures maximum driving range without losing energy for heating, ventilation and airconditioning. The Soul EV uses regen-

erative braking to capture and recycle into the battery the kinetic energy generated while the car is coasting and braking. The battery pack is mounted beneath the cabin, ensuring a low centre of gravity and contributing to the car’s good ride, handling and refinement. The 81.4kW electric motor has 285Nm torque, driving the

front wheels via a constantratio gear reduction unit. Acceleration to 100km/h takes 11.2 seconds; top speed is about 145km/h. The Soul EV is said to be notable for containing 23kg of bio-based plastic, 10% biobased organic carbon content and newly developed anti-bacterial materials and paint.

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