Dairy News 23 September 2014

SEPTEMBER 23, 2014 ISSUE 321 // www.dairynews.co.nz

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SEPTEMBER 23, 2014 ISSUE 321

// WWW.DAIRYNEWS.CO.NZ

MOVING COWS INDOORS “If you give cows choice, they will often choose shelter.” - Dr Andy West, former chairman of HerdHomes. PAGE 4

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DAIRY NEWS SEPTEMBER 23, 2014

NEWS  // 3

Few answers on Swede sickness ANDREW SWALLOW andrews@ruralnews.co.nz

Botulism scare left behind. PG.09

Old dog, new tricks. PG.37

Simple and spot on. PG.50

NEWS �����������������������������������������������������3-23 OPINION �������������������������������������������� 24-26 AGRIBUSINESS ���������������������������� 28-33 MANAGEMENT ����������������������������� 34-40 ANIMAL HEALTH ���������������������������41-45 MILK QUALITY ������������������������������46-48 MACHINERY & PRODUCTS ������������������������������������� 49-54

AT LEAST two months since cows started keeling over on swedes in Southland the causes are still unclear. And judging by comments following a crosssector crisis meeting last week it will be some time before answers are forthcoming. The death toll seems certain to be in the hundreds, with probably thousands more cows across the region affected clinically or subclinically. Financially the impact will likely be millions. PGG Wrightson’s HT swedes are a common, though not universal, factor behind the photosensitivity, weight loss and/or ill-thrift symptoms being seen. Many cows have either died or had to be euthanased. Autopsies have revealed liver and in some cases kidney damage, say vets. A warmer than normal winter is a suggested factor, the thinking being it advanced crop development and produced unusually leafy stands, raising levels of toxin-inducing glucosinolate compounds in the crops. However, at this stage that is just a theory and DairyNZ was out last week sampling five stands of HT swedes where cows had been affected, five where they hadn’t, and five non-HT swede crops. “We’ve got to look at the MetService data for the weather and not just go on what people feel,” DairyNZ’s regional leader, Richard Kyte, told Dairy News. Exactly how and where the samples will be analysed was still to be determined so they were being frozen in liquid nitrogen for testing once a lab that could do the job had been found. Kyte acknowledged testing for glucosinolates in brassica seed is routine in Europe and North America with crops such as oilseed rape or canola but it seems protocols for forage testing are less well established. “It doesn’t look like the science will be at a

Cows started keeling over on swedes two months ago.

point where we have answers by the time people are putting next year’s crops in,” he admitted. Challenged on why the problems with cows on swedes hadn’t been publicised sooner, Kyte said DairyNZ put out an advisory “within the week” of the issue coming to its attention, which was only when cows started coming home for calving and “a lot of noise” about problems on swedes was generated. New Zealand Veterinary Association representative in Southland, Mark Bryan, says clinics in the region noticed unusual signs of liver disease in autopsied cows off swedes in July. “We then started to go back and look at unusual cases in winter prior to that, and work forward collecting more bloods and post mortem samples to complete the picture. We have been finding significant liver and sometimes kidney damage.” Huge amounts of data from over 40 farms has been collected and vets are helping DairyNZ get a better handle on the extent of the problem and details behind cases. To date the work has all been

at vets and farmers’ expense. “The majority of cases are in central Southland. There’s about 40 case farms and a similar number we’ve heard about anecdotally,” he told Dairy News. Besides the photosensitivity, weight loss and/or ill thrift symptoms, cows seem more susceptible to other diseases with increased mortality. “We are monitoring farms to determine any chronic or long-term subclinical effects. If symptoms appear we encourage farmers to stop feeding swedes, provide an alternative feed, water and shade, and to contact their vet. “We are also suggesting that if farmers are concerned, they get a proportion of their cows blood sampled to determine the extent, if any, of liver damage.” Bryan says information from PGG Wrightson confirmed veterinarians’ initial suspicion HT swedes linked the majority of cases. @dairy_news facebook.com/dairynews

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DAIRY NEWS SEPTEMBER 23, 2014

4 //  NEWS

Debate looming on housing cows – West SUDESH KISSUN sudeshk@ruralnews.co.nz

NEW ZEALAND is

warming to the idea of housing cows but a debate looms on the issue, says the outgoing chairman of HerdHomes, Dr Andy West. West, vice-chancellor of Lincoln University, resigned last month from HerdHomes board after four years. He says farmers and scientists are becoming more ready to accept the need for cow shelters. The debate will be whether or not cows should be housed 365 days yearly, 24 hours daily. “The public has wanted chickens out of cages and pigs out of crates, though of course often both of those species remain permanently housed,” he told Dairy News. “Will the NZ public want cows to spend at least some time of a day or a season on grass, and if so how much? That is a yet-

to-be-answered question. “Cows are permanently housed in some parts of the world and goats are often permanently housed in New Zealand. “It will be interesting to see if 24 hour/365 day housing of cows will ultimately be acceptable in New Zealand. We often like to market our food as produced from animals that thrive out in pastures and imply this is natural, thus so too by implication is our food.” West says he cannot say whether the public and the Government will allow the country to move away from that market positioning. HerdHomes founder Tom Pow believes cow shelters accessible to animals most of the year will be common; full-time housing or full pasturegrazing will also be practised. Pow says cow shelters will allow flexibility: cows can be inside 24/7 for short periods or just stroll back from the paddock for shade and a feed top-up.

COWS SAVE ENERGY ANDY WEST says cow shelters help cows save energy. HerdHomes shelters protect cows from extreme cold and hot weather, he points out. “One reason farmers can record up to 25% increase in profitability after about three years of effectively using a HerdHomes farming system is that cows put less energy into staying warm or cool and more energy into producing milk.”

“Also for managing environmental caps it is easy; don’t drop stocking rates or production limits, just de-stock at pressure times. “That could be twohour, twice-a-day grazing to reduce nitrogen from urine or a similar time on paddocks during high rainfall. Even the collected effluent can be used as offfarm fertiliser applied to a neighbour’s farm to keep under controlled levels of N and P.” Critics of housing cows say it is a step closer to ‘factory farming’ and a move away from pasturebased farming, the cornerstone of dairying in New Zealand. But West points out the “total package” of cow shelters. “In the case of HerdHomes this partial housing system of farming was invented by a New Zealand dairy farmer to protect soils from compaction and pastures from overgrazing. “Other benefits were then developed such as using the HerdHomes shelters to protect cows from conditions too hot or too cold, for calving, feeding, effluent capture and, later, sophisticated environmental management. So there is no obligation to use a shelter or barn for what is still rather quaintly termed supplementary feeding.” West says he thinks shelters are the future of dairy and aspects of beef farming.

Debate on whether cows should be housed is coming, says Dr Andy West.

Cows don’t have to be on a pasture for 24 hours a day to eat enough, he adds. “So having them off pas-

tures and in barns for part of the day – and at times in winter maybe all day – provides significant benefit.

“If you give cows a choice they will often choose shelter. Moreover, barns that efficiently cap-

ture effluent [are important for managing] within increasingly precise environmental regulations.”

WEST VACATES THE CHAIR LINCOLN UNIVERSITY vicechancellor Dr Andy West has stepped down as chairman of HerdHomes. West says he has enjoyed four years of chairing an agribusiness developed using New Zealand science. “Demand for HerdHomes is high and growing rapidly, so I am satisfied with my contribution to this impressive, 100% New Zealand agribusiness,” he told Dairy News. West says changing commitments in his personal life and ongoing commitments in professional life led to his decision. HerdHomes founder Tom Pow says West has been a great leader, but “due to his

Andy West

commitments to the wider agri-business sector and the strong position of HerdHomes this was the right time for him to step down.” Pow says West’s science

background and drive to better New Zealand’s agriculture section has been impressive. “Blend his science with the inventive nature of our clients, many of whom lead sections of our industry, then success and new inventions flowed. “It is this combination of inventions and then science that has always lead major change in industry. “Behind all successful inventors are successful investors; we now have strong working relationship with banks since they have identified our clients’ many successes. Our working relationship with AgResearch scientists grows as we try to understand new outcomes from our inventions.”

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DAIRY NEWS SEPTEMBER 23, 2014

NEWS  // 5

GDT unchanged but banks cut ANDREW SWALLOW andrews@ruralnews.co.nz

TWO MORE banks have

cut their milk price predictions for the current season in the wake of last week’s GlobalDairyTrade event. ASB and Westpac are both now at $5.30/kgMS and tip Fonterra to follow suit when it announces its annual result this week [September 24]. “We cut our milk price forecast really to reflect what’s been going on in recent sales rather than that last sale specifically,” ASB senior economist Chris Tennent-Brown told Dairy News. Had last week’s sale seen another drop it might have seen an even lower prediction, he adds. “If we see price and currency conditions continue as they are now, or worse, then the payout could start with a four,” he warned. However, that’s not what’s expected at this

stage, hence the $5.30 prediction. Looking ahead ASB remains positive about the outlook, albeit the recovery will start from a lower base, largely due to market weakness induced by Russia’s ban on EU product. “Factoring in some residual weakness from Russian dairy market developments, we have pencilled in a $6.50/kg milk forecast for the 201516 season,” the bank’s latest economic update states. “For the 2016-17 season and beyond we assume an average milk price of $7.00/kg as further income and protein consumption growth continues in markets, particularly such as China, helping keep prices high by historical standards.” Westpac is similarly optimistic for next season, saying it is “at this stage… still comfortable with our forecast of $6.60/kgMS milk price payout for 201516.” While the Chinese

economy is in a soft patch, that isn’t expected to last because policymakers are likely to step in with support if growth targets are threatened. “This, combined with the usual seasonal lift in Chinese demand and the rundown of stockpiles built up earlier in the year, should drive an improvement in dairy prices. However, that pickup is now expected to be slightly later than in previous forecasts.” The no-change result was welcomed as a sign markets might be bottoming out, by Federated Farmers Dairy chair Andrew Hoggard. “With peak milk about four weeks away we could do with some good news and while steady-as-she-goes isn’t a plus sign, at least it’s not a negative.” Hoggard said it was “great to see” milk powders up, albeit offset by falls in other commodities. “The last two auctions have been for over 50,000 t of product and both have

had over 150 winning bidders. The last four trading events have seen two falls, one very minor fall and today’s no change. “While global milk production is still feeding into the market I have a hunch we’re close to or at the bottom but there’s a lot of uncertainty out there. The Russian situation and dislocation of European milk is still playing out.” Hoggard made a plea to media to refrain from referencing prices to February’s peak. “Going back to February has absolutely no bearing on the 2015-16 season we are currently in. The only GDT auctions relevant to this season’s payout are those starting June 3, 2014. “Going back to February may make for a more dramatic story but it’s wrong if you’re talking about the current season’s payout. “Federated Farmers advice remains to budget conservatively.”

ANOTHER AUCTION, ANOTHER PRODUCT LAST WEEK’S GlobalDairyTrade event saw sweet whey powder (SWP) sold for the first time, offered by market debutant Molkerei Ammerland. The northwest German cooperative has 2000 suppliers and processes 1.5 b kgMS for export to 50 countries. Chief executive Ralf Hinrichs was pleased with its first online auction result and is looking forward to using GDT to grow its export markets. “Through

GDT we have been able to extend our reach to a larger number of customers and to transact with them much faster.” GDT director Paul Grave says a credible market benchmark of US$1295/t for globally traded SWP was set. “Today’s auction has given sellers and buyers of SWP an open-market price point for the first time. I believe the industry will benefit from the improved price transparency

that GDT offers. “We’re pleased to have a leading European dairy company introduce SWP to GDT as we move towards meeting the strong demand for whey powder on the platform.” Fonterra chief executive Theo Speirings has previously indicated (Rural News, July 1) the cooperative will increasingly look to Europe to meet its whey product needs as it reduces cheese production here.

Milk powder prices rose slightly in the last GDT auction.

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DAIRY NEWS SEPTEMBER 23, 2014

6 //  NEWS

Swede whistle needed sounding sooner ANDREW SWALLOW andrews@ruralnews.co.nz

THE DELAY between problems first emerging with cows on HT swedes and it being publicised has left north Southland sharemilker Allan Bain asking why the alarm wasn’t sounded sooner. “We’ve lost 12 cows in the last couple of weeks and we have another 50 visually affected, so that’s over 10% of our herd.” Bain says he noticed problems as cows started calving in August. “But we didn’t know there was a wider problem until we got the DairyNZ e-mail.” Had he been alerted to the possible problem in July, when the first cases surfaced, he says he could

have avoided putting cows returning from elsewhere onto his HT swede crop, and taken those that he’d been wintering on the crop off it. He estimates production losses this season alone will run into hundreds of thousands and with affected cows unlikely to get in calf, there could be a considerable knock-on impact next season. “To save this season we really need to replace those affected cows but that’s a big cost for a sharemilker. Even to find them at this time of year is a struggle.” Bain says the main symptom he’s seen is photosensitivity, causing peeling udders. “After that, it’s becoming very agitated, and you can

sometimes see their feet go red just above the hoof. We had three with neurological issues too. They were completely losing it.” While they weren’t dangerous, they appeared to have gone blind and would blunder into things, or wander off in a different direction to the herd. “You couldn’t move them.” The visibly affected cows have had little or no milk. How many of his herd are impacted subclinically won’t be known until results from blood tests taken from every cow last week are available. If there are subclinical problems, most likely with liver function, he fears their conception rates could be hit too. Another sharemilker,

Richard Jones, Dipton, had 450 of his 900-cow herd on HT crops. Three became sick, two to the point where they had to be euthanased. “The vet examined them and they were into organ failure.” Having seen photosensitivity in cows on summer brassica in the past, Jones says it’s strange the problems with the cows emerged late in winter. “It’s usually when you transition them onto the crop.” Federated Farmers Southland Dairy chairman Allan Baird says a key point to establish is whether glucosinolates were elevated in all swedes this winter, or whether it was, as people suspect, a particular problem with HT.

Reproduction impact hard to predict A LACK of recent research into photosensitivity and liver damage, be it on brassica or due to other causes, means the reproductive impact of the swede problem is hard to predict, says a vet at the centre of the crisis. “We really don’t know at this stage,” Mark Bryan of VetSouth’s Winton clinic told Dairy News. “We don’t know enough about it. We’re using the analogy of facial eczema but there’s not a huge amount of recent data on that either. It’s mostly from the 1970s and ‘80s.” Facial eczema causes severe liver damage similar to that seen in the casualty cows coming off swedes. FE can also cause reproductive problems, hence the concern there will be an impact from the swede syndrome. “Autumn calvers with facial eczema struggle to get back into calf more than spring calvers. That’s why this concerns us. There’re only two or three months from the [swede] disease incidence to mating for the cows to recover.” Bryan says cases to date are being

analysed under five broad categories. Firstly, simple mortality rate on swedes. “There’s no question it’s been higher on HT.” Secondly, there’s the incidence of photosensitivity. While it’s a recognised potential problem with brassica, if it’s going to happen it usually happens when stock go onto the crop. When and how photosensitivity has developed on swedes this winter needs to be analysed. Thirdly, there are reports of general ill-thrift in cows on swedes this winter. While it’s likely they’re associated with the problem, that needs to be established scientifically. “Fourthly you’ve got cows coming home and going onto HT swedes. This isn’t going well at all. It’s late season for brassica, these are transition cows: everything’s against them,” notes Bryan. Finally there’s the ‘what next?’, he says. How long will cows be affected? @dairy_news facebook.com/dairynews

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DAIRY NEWS SEPTEMBER 23, 2014

NEWS  // 7

HT still on sale PGG WRIGHTSON Seeds’ gen-

eral manager New Zealand, David Green, says there’s no plan to pull HT swedes, or any other HT brassica, from the market at this stage. “We think we’re dealing with 1-2% of the area sown in HT swedes and a lot of growers that use them see it as a valuable technology. That said, we can’t ignore what’s happened, so if we do sell, and we intend to, it will be with a specific and transparent education process,” he told Dairy News. He declined to comment on whether PGW would be paying compensation to affected farmers, but likened the stock problems seen to other enviro-agronomic impacts such as nitrate poisoning. He also notes photosensitivity symptoms in stock on brassica are not new but they haven’t been seen on this magnitude before. Four years’ testing HT brassicas, and thousands of hectares of commercial area in 2013, hadn’t indicated there would

David Green

be any particular problem with the varieties. A milder than normal winter is probably a key factor, he says. “HT has a propensity to grow more leaf and I understand that’s where the glucosinolate accumulates…. Some swede tops this year are up to my waist.”

Green says no problems have been reported with other classes of stock on HT forage and PGW was first made aware of the problems with cows in Southland about three weeks prior to talking to Dairy News last week. – Andrew Swallow @dairy_news facebook.com/dairynews

World summit knocked by unrest THE ANNUAL world dairy summit planned for Israel next month has been cancelled due to civil unrest in the region. International Dairy Federation president and Fonterra executive Jeremy Hill says some participants were struggling to get travel insurance for the oneweek event. “We are extremely disappointed having to make the decision,” Hill told Dairy News.

The summit is jointly organised by IDF and the host country; this year’s event was to be held in Tel Aviv. Hill says the decision to cancel was made after teleconferences between IDF officials and organisers in Israel. In a joint message on the summit website, Hill and organising committee president Michal Kraus say the committee values and guarantees the security

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of summit participants. “The unrest in the region prevents us from conducting this event in the appropriate manner.” Hill says the IDF general assembly, which meets annually at the summit to elect officials, will meet in France early December. However, the business sessions, including the annual dairy industry leaders’ forum, have been cancelled.

“We are grateful to the French Dairy Association for stepping in at such short notice and accepting to host our meetings.” Last year’s summit was held in Yokohama and was attended by Fonterra chief executive Theo Spierings, DairyNZ chairman John Luxton and other industry leaders. Next year’s summit will be in Lithuania. – Sudesh Kissun

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DAIRY NEWS SEPTEMBER 23, 2014

8 //  NEWS John Key at Danone’s plant in Auckland last week.

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NZ dairy surfing the wave of change in Asia A ONCE in a generation change is

happening in Asia and New Zealand needs foreign investment to take advantage, says John Key. Debate about foreign investment had been quietly running through the election campaign, Key said at an Auckland event last week celebrating the merger of infant nutrition company Danone Nutricia with New Zealand company’s Gardians and Sutton Group. Key said there is a certain amount of capital in New Zealand but saying ‘yes’ to foreign investment provides jobs and makes New Zealand wealthier. “If Danone wasn’t investing in New Zealand, that slack would not be picked up by somebody else. There is only so much Fonterra can invest, there is only so much other companies can invest. We have a clear choice: do we want to encourage investment from foreign players with global distribution and add value to our country, have them paying taxes and creating jobs, or do we want to have a lower level of economic growth? I think we want to have the former.” If companies are going to add value, employ people and be good corporate citizens, they should be welcomed. “We have a once-in-a-generation change happening in Asia: it is going to happen over the next 10-15 years and either New Zealand goes out there and grasps that with both hands and says ‘yes our country is going to

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by bigger players. Danone will be an important part of that.” Key said another debate during the election campaign has been about whether New Zealand is a commodity country and whether we are diversified enough. “New Zealand is always going to succeed where it has a competitive advantage and there is no question that agriculture and dairy are areas where we have competitive advantage. “We have good rainfall and arable land and we are good at what we do. What is not true is that we remain a commodity based player. We are rapidly moving up the value curve. So the value added to New Zealand by adding the value of infant baby formula is significantly greater than if we just sell bulk milk powders to China.” The more products we sell, such as Danone Nutricia’s, and the less milk powder we sell, the wealthier New Zealand can get and the less susceptible it is to volatility in commodity prices and exchange rates. “The long term pitch for New Zealand has to be continuing investment in science and innovation to continue to open up markets and continue to sell these products. That is what the Government is doing.” We also have to have continued investment to make our testing regimes and quality assurance first rate, Key said. @dairy_news facebook.com/dairynews

OK IF THERE’S YOGHURT IN THE FRIDGE PRIME MINISTER John Key says he is happy his art student daughter Stephie is a Danone consumer. “Every so often, because my daughter is at university in

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become wealthier and do better’ and re-rate ourselves as a wealthier nation or we’re going to say ‘no….’, and in the end someone else is going to fill that void.” One thing is for sure: consumers in China, Korea, Malaysia or anywhere else are going to buy infant formula. “They’re going to [want to] buy it from New Zealand; the question is whether we want to supply it to them or not. Even though the public is sometimes uneasy about foreign investment, in their heart of hearts they understand the good it is doing.” There is a large consumer base already in Asia and we know the single most important issue for parents anywhere in the world is the quality and safety of food for infants, Key says. “We certainly know from all the consumer evidence we see, particularly in Asia and in China that as soon as those consumers get a little bit wealthier they will make all sorts of other sacrifices to buy a New Zealand sourced baby formula because nothing is more important to them than the safety and health of their child.” That market will grow “exponentially”. New Zealand has a dominant position in infant baby formula – about 80% of the imports into China. “Those consumers are never going to go away from wanting to have that quality and in fact with the changes China has been making, what you’re going to see is consolidation of the industry and a lot of it dominated

France, I make her open the fridge on Skype and show me that she has something half decent to eat, as opposed to the bottles of wine you would expect of university students,”

he joked. “There is always Danone yoghurt, so trust me she is a consumer. I take that as proof there is something healthy about what she is doing.”

DAIRY NEWS SEPTEMBER 23, 2014

NEWS  // 9

Formula makers leaves botulism scare behind PAM TIPA pamelat@ruralnews.co.nz

DANONE NUTRICIA

estimates 60,000 more cows will be needed to meet the growth projection of its company in New Zealand by 2020, says Nutricia’s managing director ANZ, Corine Tap. The company held a function attended by Prime Minister John Key last week to mark the amalgamation of Gardians and the Sutton Group into Nutricia’s NZ operation. “This acquisition is a strategic move to support our business in New Zealand, Australia and Asia,” Tap told Dairy News. “This is to support long term sustainable growth both from a milk supply perspective as well as from a manufacturing perspective. “We already have production facilities, we were one of the first to get approval from the CNCA (Chinese accreditation authority) – Danone standards are the highest in the world. However we were looking to expand our capacity in this part of the world and Suttons and Gardians opportunity matched exactly what we were looking for. “The intent is to continue to invest in the two sites we have acquired to support the growth and demand coming from New Zealand and Australia and the rest of the region, therefore we envisage by 2020 we will need approximately the supply of more 60,000 cows. It is a journey.”

Danone Nutricia already has agreements with farmers and “we will continue to have more agreements with more farmers”. “We are supporting nutrition in the first 1000 days… the move is supporting the brands we already have but with new product lines with more nutritional products that support the first 1000 days.” Tap told the launch event held at its newly acquired Auckland facility that merging operations will provide additional infant formula blending and packing facilities at that site, a large milk drying capacity in Balclutha and long term fresh milk supply. Danone intends to double the capacity of the plants. “We will be supporting not only Karicare here and other brands in New Zealand but also Australia, Hong Kong, China and many more countries in Asia. This is a truly strategic location to support our growing business in this region. “It is also a sign of our commitment to New Zealand and the talented New Zealand workforce. It means opportunities for more than 200 employees we have welcomed across two new sites and now we begin a new mission to transition into a unified team in all the different Nutricia locations, combining skills resource and capabilities.” The development comes after a “very tough year” following the Fonterra botulism false alarm.

NEW FACILITY ■■

The can forming plant can produce 50 million cans per year.

■■

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■■

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Product produced at the plant will be used for the local market and export.

“That Fonterra scare caused considerable trauma to our customers, our staff and to our industry. Yet our commitment to never compromising safety and quality meant we complied with the extensive and expen-

sive recall that proved unwarranted. Today is further proof that despite that considerable upset Danone Nutricia will continue to build on our commitment to innovate.” @dairy_news facebook.com/dairynews

Corine Tap, Danone Nutricia, and John Key.

DAIRY NEWS SEPTEMBER 23, 2014

10 //  NEWS

Milk surge would give Oz front running SUDESH KISSUN sudeshk@ruralnews.co.nz

AUSTRALIAN DAIRY

industry needs to lift milk production before it can become a world leader

Murray Goulburn chairman Philip Tracy (left) with Ling Qin at the Dairy Australia investment forum.

in exports, says Dairy Australia chief executive Ian Halliday. Speaking at the investment conference, he said Australian dairy can become the undisputed world leader in exported

cheese, yogurt, specialty powders, infant formula and liquid milk drinks. “These are the products that deliver the greatest premiums and [for which] a growing middle class is ever hungrier,” he says. “But for this medium term goal to be realized, in partnership with our processors and manufacturers, we must increase the national volume of milk.” In 2000 the industry produced 11 b L of milk a year. This season it will produce about 9.3 b L. Yet we have the resources, skill, land and water to produce far more, says Halliday. More milk will help everyone: farmers, processors and consumers, “to ensure Australian consumers receive what they need… and ensure our exporters have the sheer volume of dairy product to lessen their exposure to being price takers, and thus improve the situation for farmgate milk returns.” To lift the national milk yield, greater capital inflows to the dairy sector generally and dairy farms specifically are vital, Halliday says. Confidence in the Australian dairy industry is up; farmers are now clearing debt and looking at their business

with optimism and renewed confidence. Machinery upgrades and improved irrigation systems should result in richer pastures and better yields. “And it is now that we should see more farm businesses sharing equity, benefiting from capital injections and growing their performance. “All this will prompt greater milk production in Australia.” Hallidays says investors – local or international – will play an important role in the industry reaching its potential. On the question of how much capital is needed, Halliday pointed to work by Port Jackson Partners in 2012. In their ‘Greener Pastures’ report, their analysis was that for the Australian dairy industry to attain a level of growth equivalent to New Zealand’s industry between 2002 and 2012, an extra A$10 b capital on-farm would be required by 2020. This same analysis also found that for the Australian dairy industry to regain its share of global dairy trade lost since 2002, a further A$6 b capital onfarm is required by 2020. • Sudesh Kissun attended the investment forum courtesy of Dairy Australia.

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AUSTRALIAN DAIRY industry leader Ian Halliday says its “perfect mix” of domestic supply and exports is a competitive strength. “With roughly half what our farms produce ending up overseas, and fully exposed to the prices of Global Dairy Trade, this keeps us market-exposed and match-fit,” he says. “But with roughly half our milk staying for consumption here at home, we benefit from some insulation from global volatility – unlike, say, New Zealand where 95% of what they produce heads off to the international marketplace.” Halliday, chief executive of Dairy Australia, was speaking at an investment conference organised in Melbourne. The one-day event was aimed at boosting investment in the dairy sector. Halliday told the 300 attendees, including Chinese dairy stakeholders, that global dairy prices had tumbled over the past six months. The volatility of dairy, like all commodities, is a fact of life, he said. “But a competitive strength of Australia’s industry is that we present something of a perfect mix between domestic market supply and exports. “So despite significant global volatility now, the long term opportunity of investment in our dairy farms remains compelling.”

DAIRY NEWS SEPTEMBER 23, 2014

NEWS  // 11

China FTA will level the playing field – Robb SUDESH KISSUN sudeshk@ruralnews.co.nz

AUSTRALIAN TRADE

Minister Andrew Robb has promised the country’s dairy farmers “at least a New Zealand-equivalent” trade deal with China. Robb says it’s time to have the courage and decide to complete a free trade deal with China Speaking last week at an investment forum organised by Dairy Australia in Melbourne, Robb warned that any delays in a FTA with China will exacerbate the advantage New Zealand farmers enjoy over their Aussie counterparts. New Zealand was the first OECD country to sign a comprehensive trade deal with China, something Australia has unsuccessfully pushed for years. But the latest round of negotiations has senior ministers believing the deal can be clinched by the end of the year. Tony Abbott and Chinese President Xi Xinping are due to meet twice in November, when a deal could be signed. They will meet at the Asia-Pacific Economic Co-operation forum in Beijing and in Australia, where Xi will attend the G20 and address parliament. Robb told Australian dairy industry leaders that New Zealand was their most serious competitor; the FTA with China gave New Zealand farmers and processors a major advantage. “The inability of our predecessors to conclude an agreement with China during six years

undermined our competitive position against our friends across the Tasman.” Robb told delegates that since concluding their agreement New Zealand’s dairy trade revenue from China increased by A$3.7 billion to the end of 2013; Australian dairy revenue from China has increased by $173 million during the same time. But he urged caution: trade negotiations are tough. “My starting position is to seek full liberalisation across every sector, but these are negotiations. There are always sensitivities on both sides and you rarely get everything you want.” He assured the industry that Australian dairy will continue to feature prominently in trade deals. “Each free trade agreement we can secure is like a brick in a wall, providing new levels of opportunity and market access and forging valuable relationships “From the most humble beginnings, literally involving seven cows and two bulls brought ashore from the first fleet to feed in pastures around Parramatta, Australian dairy today is a A$13 billion farming, manufacturing and export industry.” Farmgate value alone is A$4 billion and in 2012 Australia’s share of world trade was 7%. The industry has about 1.65 million cows and 6700 dairy farmers producing about 9.5 b L of milk annually. It directly employs 43,000 people and 100,000 more indirectly in related services. Australia exports 40% of its milk to China, Japan,

MORE TO GAIN THAN NZ AUSTRALIAN EXPORTERS stand to gain more from a trade deal with China than their New Zealand counterparts have, says Trade Minister Andrew Robb. Australia’s economy and export capability is of course more diverse than New Zealand’s so gains from an FTA will be more widespread for us,

he says. “For example, Australia’s two-way trade with China is worth A$150 billion, compared to New Zealand’s two-way trade of A$19 billion. “In 2013, New Zealand sent A$9 billion of goods to China in total, which included A$3.6 billion of milk powder, a record level.

“Our services exports to China alone are worth about A$7 billion and our merchandise exports about A$95 billion. “I am not diminishing the importance of dairy, but simply illustrating the more diversified nature of our economy compared to that of New Zealand.”

Australia Trade Minister Andrew Robb.

Singapore, Malaysia and Indonesia as its biggest markets; the Middle East is also shaping up as important. Robb says with rapidly increasing global demand, Australian dairy offers strong prospects for international investors looking to capitalise on export growth. In 2013-14, Australia exported A$3.21 billion of powders, proteins, cheeses, and other milk products. Overall value of its dairy exports grew 22% on the previous year, he says. “Milk powder was the strongest achiever, increasing by almost 50% on the previous year. Demand from China in particular will continue to grow, especially for fresh milk. “Infant milk powder can retail for almost four times as much in Shanghai as in Australia. “Fresh Australian milk retails for at least A$7/L on the shelves of Chinese supermarkets. This shows Asian consumers are prepared to pay a premium for safe, high-quality Australian dairy products, and the same applies to beef, fruit and vegetables.” • Sudesh Kissun attended the investment forum courtesy of Dairy Australia.

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DAIRY NEWS SEPTEMBER 23, 2014

NEWS  // 13

Set to zero and start again PETER BURKE peterb@ruralnews.co.nz

‘RE-WORK YOUR

budget’ is the key message for dairy farmers from DairyNZ general manager of extension and engagement, Craig McBeth. He told Dairy News that given a likely further drop in the payout for this season, farmers should completely re-work their budgets for this season with a particular eye on costs. “It’s a case of taking

your budget, putting all the numbers at zero and asking ‘how much do I need to spend on animal health, feed, fertiliser, repairs and maintenance?’ Then rebuild the budget with a new set of eyes.” The context is from the perspective of the payout, McBeth says. This will be “biting more” through next winter, requiring that farm systems are set up so that costs next season are relevant to the payout during that season. Today’s decisions are critical, especially regard-

ing grazing management and pasture condition. Farmers must be thinking ahead and have in mind what pasture will be like in a few weeks time and when cows start to mate. “After Christmas will come decisions critical to the next season’s production such as cow body

condition score and the amount of supplement required to bridge any feed pinch. Also think about the number of cows to be wintered next year and be prepared to cull earlier bearing in mind that the meat schedule is pretty strong but the milk payout is less strong.”

A slightly lower-thannormal stocking rate may help reduce cost of supplements. McBeth advises confidence in, and a focus on, the grass growing on paddocks because it is the best and cheapest feed source. And a focus on good pasture utilisation is essential.

Craig McBeth, DairyNZ.

Weather takes turn for good THE WEATHER remains the big talking point for dairy farmers, all hoping for a good season given the lower payout. Unusual weather in parts of the central, western and lower North Islands and the West Coast of the South Island has caused an unseasonal dry patch, some farmers even running irrigators. But Far North and the East Coast of the North Island have had plenty of rain. West Coast dairy farmer and Federated Farmers board member Katie Milne says the situation on the West Coast has eased in the past week with the arrival of much-needed rain. The grass is now taking off and farmers hope there will be no weather upsets. Meanwhile DairyNZ’s Craig McBeth says many farmers in Northland remain challenged as they work to repair pastures damaged by floods. But other farmers there who were not hit by floods are having a good season. “And in Waikato it’s been a good season and calving has gone well. It’s been drier than we’d normally expect at this time of the year, not a bad thing, but they have now had good rain and some farmers have been setting up silage to prune back on supplements fed. “Coastal Bay of Plenty is much the same and irrigators have been turned on in some cases. The trick there now is to manage those excessive grass growth rates to maintain quality. Taranaki was also pleased to see the rain as it was getting pretty dry there, and it’s been a similar story in Manawatu and Horowhenua where the rain has been a welcomed.” In Canterbury lack of rain and low temperatures have forced farmers into juggling to get their pastures moving. And in Southland the wet, warm weather seems to be the cause of toxicity in swede crops which has affected cows there. “The theory is the lack of frosts has led to less sugar in the bulb of the plant which has made it less palatable for the cow to eat. The plant has grown more leaf on the top where the chemical compounds accumulate and the cows eat more of the green leafy top and less of the bulb. We believe the warmer season has contributed to that, causing the toxicity problems.” Also confronting some dairy farmers is further clinical signs of theileria in some herds.

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DAIRY NEWS SEPTEMBER 23, 2014

14 //  NEWS

Motions defeated at fert co-op agm ANDREW SWALLOW andrews@ruralnews.co.nz

CALLS TO revise share

redemption, research and annual meeting policy at fertiliser cooperative Ravensdown were “emphatically” voted down at its annual

meeting in Marton last week. The meeting also saw two new directors join the board, which has been reduced to ten seats, completing a two-year restructure. Board vice-chairman Chris Dennison, a cropping and dairy

Kate Alexander

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farmer from North Otago, was a victim of that process which he had championed, losing out to Southland agribanker and dairy farm owner Peter Moynihan in the director election for the new southern ward. “We’d been trying to make the board smaller

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and one of us had to go,” Dennison told ]after the meeting. Prior to the meeting Dennison was director for Ravensdown’s Otago ward, and Moynihan for Southland. The new southern ward, Ravensdown’s ‘area 1’, covers Southland, Fiordland, and coastal Otago. Central Otago is now part of ‘area 2’ east of the main divide to the Rangitata River. Takaka dairy farmer Tony Reilly was re-elected for the enlarged area 4 (West Coast, Tasman, and Kaikoura District) and dairy farmer Kate Alexander, from Dargaville, beat a strong field of candidates for the new area 8, north of a line roughly from Tauranga to Raglan. Jason Dale joins as an independent director after the resignation of Liz Coutts. “We’re delighted to have the calibre of people like Pete and Tony, and now Kate and Jason as part of the Ravensdown team as the company enters an exciting new phase of development based on its core strengths,” said Ravensdown chairman John Henderson after the annual meeting. The board now has eight farmer-elected directors, four from each island, and two independents. That’s down from ten farmerelected New Zealand directors, two Australian directors and two independents. Senior management also used to sit in on board meetings. “It was like going

to a convention, not a board meeting, and a lot of people never got to have their say or gave up on what they had to say. I felt the board had lost its effectiveness,” Henderson told Dairy News. With the board structure sorted, a constitutional review is underway. Henderson says he’s “canvassing views” from Ravensdown’s areas and collating a “schedule of topics” to tackle. A consultant is being sought to help with the review and from there a timetable and programme of work will be drawn up. “When I set about the exercise I thought it would take about 12 months to have something to put forward for shareholders to consider but the more we get into it, the more complex it becomes. But I want to come up with a real restructure rather than a tinker, which is what we’ve had in the past.” Henderson says the annual meeting was positive and professional, and the four motions tabled by South Canterbury shareholder Jeremy Talbot were “emphatically” defeated, both on a show of hands and proxy votes. Talbot told Dairy News he was congratulated by many shareholders on the night for raising the motions he did, but few voted for them because they’d been told not to by the board. @dairy_news facebook.com/dairynews

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KATE ALEXANDER owns and operates a 240ha, 700-cow dairy farm at Dargaville. Following her election she acknowledged her fellow candidates, thanked those who voted for her, and said efficient use of fertiliser “is a huge issue for New Zealand. I believe the expert advice Ravensdown gives to its customers is vital in this area.” Jason Dale says Ravensdown is “moving in the right direction” with a strategy that’s working but still has some distance to go. “It is an ideal time for me to join.” Besides his Ravensdown role, he chairs LIC’s audit committee and is an independent director of Taranaki Investments Management. He’s had senior finance roles at Sealord, Auckland International Airport and Fonterra, and has worked with KPMG.

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DAIRY NEWS SEPTEMBER 23, 2014

NEWS  // 17

How not to manage a food-safety crisis ANDREW SWALLOW andrews@ruralnews.co.nz

THE SAGA of Fonterra’s WPC80 botulism scare last year holds lessons in communication and management for the whole food sector, say marketing and communications academics. Dr Chris Galloway and Dr Doug Ashwell, Massey University, are studying the timeline of events and consumer perceptions of that timeline. While their paper is a work in progress, they recently presented preliminary findings at a Society for Risk Analysis conference in Palmerston North. “It’s understandable that in a complex company like Fonterra it can take time to establish if a risk exists or not, but one

should be developed at the governance level, says Galloway. However, he acknowledges that systems must be in place all the way down to the shop floor to ensure effective and timely internal communication should a food safety issue arise. Without that, the communication strategy at senior management and board level cannot be deployed. Galloway notes there was also confusion and delayed communication with other parties, such as ministry and government officials, during the WPC80 scare. “In any crisis management situation there is a crisis of information. Decisions have to be made in the absence of complete data. How that is communicated to the public is

the risk analysis conference presentation titled ‘A formula for confusion: New Zealand’s 2013 botulism botch-up’, and the paper they are working on, are not “having a go” at

Fonterra. “We are seeking to pull out the lessons for future approaches to such issues not only in Fonterra, but in other food producers.” For a country like New

Zealand, with so much of the economy dependent on food exports, the lessons are of national importance, he adds. @dairy_news facebook.com/dairynews

Chris Galloway

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“There’s a feeling among consumers that they have the right to know if there could be a safety risk as soon as the producer knows there could be a risk.” important.” Some consumers and media organisations expect instant answers to every question but “not everything consumers expect is reasonable,” says Galloway. The nature of science means some tests take time. A company having to do such tests must be able to explain to the public why the answers are not yet available and what steps have been taken in the meantime. “Best practice in other crisis communication studies is that a company should be prompt in revealing an issue to any affected stakeholders. ‘Tell it early, tell it yourself’ is the mantra.” Galloway notes Fonterra had a crisis management plan, but an independent report to the Fonterra board stated the plan was not sufficient for the scale of the crisis the company faced. However, he stresses

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thing clear last year was that consumers and other stakeholders sometimes have a different view as to the acceptability of that timeline,” Galloway told Dairy News after the conference. “There’s a feeling among consumers that they have the right to know if there could be a safety risk as soon as the producer knows there could be a risk. “Organisations that might have to handle such food safety issues in future should think about the consumer perception of the time it takes to test for a potential problem and have a strategy in place to manage that [timeline] risk, with a suitable narrative for the timeline.” From a business perspective, a failure to effectively manage communication of such an issue is a risk to the company’s reputation and future business, so a communications strategy

9/5/14 4:25 PM

DAIRY NEWS SEPTEMBER 23, 2014

18 //  NEWS

Formula makers b SUDESH KISSUN sudeshk@ruralnews.co.nz

INFANT FORMULA

exporters and manufacturers are backing new regulations proposed by the government. A spokesman for MPI says 20 submissions were

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“Of the submissions received to date, most submitters are broadly supportive of the proposals in principle, with comments focusing on the detail and implementation of the draft standards,” MPI says. MPI will update the regulations and discuss the proposed final versions with industry working groups that have helped develop the standards. A transition period will be provided to enable businesses to understand and adopt any new requirements. The MPI spokesman says it is seeking feedback from industry on appropriate transition times. “During this transition period, MPI will work with industry to implement new requirements and processes.” Auckland infant formula manufacturer and exporter GMP Dairy welcomes the proposed changes. GMP is one of a handful of New Zealand manufacturers approved to export infant formula to China; the company was the only one to clear the initial Chinese audit. GMP deputy general manager Ravinesh Kumaran says the proposed changes will improve our standards further. “GMP has voluntarily adopted pharmaceutical standards and we have been audited and received HACCP and GMP (Good Manufacturing Practices) certification in addition to RMP (Risk Management Program). Our factory and in particular the building, machinery, layout, people, documentation, validation and traceability systems

have been continuously developed over the last few years and are based on pharmaceutical standards. “While we don’t want MPI to make pharmaceutical standards compulsory, lifting the standards is good for the industry.” Kumaran points out that most of MPI’s proposals are already implemented at GMP. “They are a part of our standard operating procedures.” MPI agrees the proposals are intended to fine tune our existing system to take account of the rapid growth in infant formula manufacturing and exporting. They consolidate requirements already in place and set out new provisions to strengthen requirements for infant formula exporters. The proposed infant formula manufacturing standard aims to reduce variation in the application of risk management measures by manufacturers. “MPI considers most manufacturers would already substantially comply with the proposed standard,” the spokesman says. The changes will also boost traceability which, for regulatory assurance and recall purposes, is already provided through the dairy supply chain in New Zealand. However, there are a few markets, such as Hong Kong, that do not require official government assurances for infant formula exports and the proposed changes will ensure that MPI has comprehensive information about these exports. MPI says the proposals

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DAIRY NEWS SEPTEMBER 23, 2014

NEWS  // 19

s back proposed export rules include a requirement for export declarations on infant formula destined for those markets. “This will enable MPI to hold information about all infant formula products exported from New Zealand and the businesses that are

involved in the export of those products. “The information can be used for compliance monitoring and to speed up response times in the event of product withdrawals and recalls that affect export products to those markets. This also

supports New Zealand’s official assurance framework by enabling MPI to, among other things, respond to overseas regulator requests for information about New Zealand products that may enter their market through another market.”

MPI is proposing a manufacturing standard for infant formula.

FORMULA FOR BABIES DESERVE HIGHER STANDARDS CHINA HAS signalled that it wants the highly regarded pharmaceutical systems for infant formula manufacturing. GMP’s Ravinesh Kumaran says China insists on good manufacturing practices and these are typically found in pharmaceuticals operations. “That’s why we decided to undergo a voluntary audit for Good Manufacturing Practices for production of Formulated Milk Powder and Infant and

Young Children Formulated Milk Powder.” He says the changes proposed by MPI will be received positively in the world’s largest market for infant formula. Infant formula has a sensitive market – babies – and this is an important issue for China. The improvements initiated by MPI and the industry in New Zealand are in the right direction and China will appreciate and place more confidence in our systems and high standards.”

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DAIRY NEWS SEPTEMBER 23, 2014

20 //  NEWS

Calf could be king

Farmers have been told to get their heads around the calf as king.

PETER BURKE peterb@ruralnews.co.nz

THE FUTURE of a ‘by-

product’ of the dairy industry is looking up, says one of this year’s Kelloggs leaders. Alan Cook is a banker, dairy grazer and Hereford

stud breeder watching the opportunities presenting to dairy farmers by the volatility of the milk price. Last week he spoke at a dairy beef integration day, raising the issue of the potential value of dairy calves. He says it’s important in years when the payout

is low that dairy farmers look at diversification options. Even when in good years farmers should also grab the opportunity of making extra cash by getting the best value from dairy calves as long as this complements their main activity, Cook says. “The export heifer

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market has developed and grown but it hasn’t been stable. There’s been a difference between supply and demand in different years, however it’s proven to be a valuable use of livestock from what we have seen. “It doesn’t matter whether you measure it on a cents/kg of feed basis or on a livestock value basis, it has proven to be a profitable way to take animals that are essentially a byproduct and turn them into something that has a use somewhere else.” The game changer for heifers for the export market is sexed semen, Cook says. This benefits dairy farmers and it also can produce more calves suitable for beef rearing. Cook says the work he’s seen suggests every animal born from the dairy industry is a potential beef animal. Some have greater potential than others. “New Zealand does not have the resources to be able to take all the calves from the dairy industry and graze them through to an age of two years or so because there is not the land area or the capacity in any of the steps along the value chain to allow that. But there is the potential ability rear more and we are producing animals more suitable for the beef market.” The challenge is to break down the stigmas and perceptions many farmers have towards certain breed types instead of focusing on the actual

Alan Cook

qualities of the animal and not the myths. “One of the myths is that animals that have dairy ancestry – particularly Jersey – don’t produce good quality meat. There is a perception that they don’t grow a suitable or a valuable carcase for meat processing and that they lack the growth-rate efficiency beef animals have.” Such perceptions need to be broken down; Cook can find no evidence to support them. Another misconception is that beef cattle are better converters of feed to meat than dairy animals. Again he says he can find no evidence to support this claim; rather the evidence suggests the opposite. Dairy farmers need certainty in rearing calves, best achieved by developing a close relationship with someone in the beef industry – someone reliable who will take the calves and pay on time. The greatest driver of all this is the dollar, Cook says. It will change behaviour and motivate farmers to change their thinking. Plenty of good research data is readily available to help farmers make profitable decisions.

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ALAN COOK says the dairy goat industry is facing an issue similar to that of dairy cow industry. Goat farmers chiefly produce milk solids but they also have by-products to deal with and the opportunities that go with those. “Goat meat is the most eaten meat in the world, so they have goats that come out of their industry at the end of their lactating life and they have to be disposed of somehow. They also have lots of kids born each year which present an opportunity to develop a meat industry.” They are looking to develop a stronger goat meat industry and seeing where that can take them. Exports seem most likely because apart from Auckland’s goat meat consumers there is little demand for the product. Worldwide the goat meat market is huge; the challenge is how to break in.

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DAIRY NEWS SEPTEMBER 23, 2014

22 //  WORLD

Oz farmers look abroad for staff AUSTRALIAN FARMERS are welcoming a

revamp of the 457 visa programme, used by businesses to employ skilled people for up to four years. The National Farmers Federation says the new

measures will help address a skills shortage in rural and regional Australia. A four-month review of the visas by four people recommended, among other things, abolishing labour market testing,

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relaxing English language requirements, reviewing fees and streamlining the processing of applications. About 150 stakeholders made 189 submissions. The review followed a crackdown on the scheme

by former Prime Minister Julia Gillard, who argued that temporary visa numbers had outstripped employment growth. Overseas workers play a small but important part in Australian farm-

Brent Finlay, NFF president.

ing. Many farmers rely on these workers to do essential tasks the locals cannot do. NFF says the proposed reforms would reverse onerous labour market testing rules and adjust market salary rates and minimum income threshold settings. New concessions could address acute skills shortages in some regions. Importantly, the report calls for changes to the list of eligible skilled occupations so that it more accurately reflects jobs in the Australian labour market. NFF president Brent Finlay says many farm businesses struggle to find local workers with the right skills. “Australian workers are the backbone of the agricultural sector. Recent experience with the mining boom shows that Australian agriculture

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faces strong domestic competition for labour from other sectors of the economy. This makes it hugely important to be able to bring skilled workers in from overseas. “Australia needs a competitive agricultural sector, one that delivers greater returns to the farm gate. Recent reports confirm the untapped potential of Australian agriculture. A key priority for us is attracting, upskilling and retaining a workforce with the capacity to unlock that potential.” Immigration Minister Scott Morrison says the 457 scheme “came under direct attack” by Labor. “They attempted to suffocate the programme with unnecessary regulation.” Morrison says the review found no evidence to back claims of widespread rorting of the scheme, as alleged by Labor.

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DAIRY NEWS SEPTEMBER 23, 2014

WORLD  // 23

Euro co-op revamps global branding EUROPEAN DAIRY

co-op Arla Foods is relaunching its global brand. A new slogan, ‘Let in the Goodness’, will be the co-op’s largest-ever international marketing campaign, underlining Arla’s prominence, says chief executive Peder Tuborgh. “There is a global demand for milk, and dairy is an integral part of the everyday life for most

of us. There’s great potential in this campaign. We have a strong dairy tradition and… among the best in the world. “We want to strengthen global knowledge of Arla as a company which provides healthy and natural products.” Preparing for the launch Arla has surveyed people in many countries and cultures to find out what dairy prod-

ucts mean to them in their daily life. People in developing countries see milk as improving their health, the co-op says. In Europe people want taste, enjoyment and “good moments” when serving dairy products. “In Europe, we probably tend to take milk and its importance for our health for granted,” Tuborgh says. “Our ‘goodness’

slogan… replaces the former ‘Closer to Nature’ slogan with its focus on the environment and natural products. The ‘goodness’ campaign has begun in Denmark, Germany, the Netherlands and Sweden. Arla’s logo is unchanged but the advertising and packaging design is new. Some small brands will be re-named or sold under the Arla brand.

Dairy is an integral part of the everyday life for most people, says Peder Tuborgh, Arla Foods. Rural Newsgroup_fix.pdf

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Egypt, bidding for a majority stake in Arab Dairy Products Co, a listed company based near Cairo. Due diligence is underway; Arla is bidding for up to 100% of Arab Dairy shares. The co-op says it has access to details of sensitive aspects of Arab Dairy’s business not published in its annual reports. Arla’s senior vice president Middle East and Africa, Rasmus Malmbak Kjeldsen, says its bid is non-binding but has now become official because Arab Dairy is listed on the Egyptian exchange. “The company seems wellaligned with our ambitions in Egypt, and we are looking at details before deciding whether or not to purchase a share of the business.” Arab Dairy is said to be strong in retail and food service, which suits Arla’s focus on these sales channels.

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An acquisition could place Arla in the top six suppliers to Egypt’s dairy sector and win it 13-15% of the cheese market. “Arab Dairy’s local production is based on recombining – adding water to milk powder then processing this into cheese,” says Kjeldsen. “About 80% of this milk powder is imported to Egypt. So there is a lot of potential

for using milk supplied by owners in value-added products which we can sell in a growing market.” Egypt is among the biggest dairy markets in the Middle East and North Africa, with 90 million people. Many are switching from home- or locally produced dairy products to those made and packed at commercial dairies and sold in shops.

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DAIRY NEWS SEPTEMBER 23, 2014

24 //  OPINION RUMINATING

EDITORIAL

A time to think creatively

MILKING IT... ‘Auction’ at last

Troops rallied

Retail power

Dairy envy

AFTER SIX years of studiously avoiding calling the online sales platform GlobalDairyTrade an auction – instead referring to the fortnightly sales as “events” – it seems Fonterra has finally conceded it is an auction. “Today’s auction has given sellers and buyers of SWP an open-market price point for the first time,” said GDT director Paul Grave, reflecting on German co-op Molkerei Ammerland’s debut on the market with a sweet whey powder offering. Only time will tell whether this was a one-off slip from the man who, to his credit, has driven GDT from the outset, or whether it is a turn of “events” into “auctions”.

RAVENSDOWN’S ANNUAL meeting saw a motion calling for share redemption reform soundly defeated. Hardly a surprise, given the sabre rattling by the board that the motion would undermine the financial security of the cooperative. No doubt there was serious rallying of the troops behind the scenes too, just to make sure the three-year staged redemption proposal didn’t pass. It shouldn’t be forgotten though, and with a constitutional review underway, that Ravensdown has an opportunity to address an issue common to many farmer cooperatives. If it does, it could for once steal a march on its arch rival Ballance. Now that would be a change.

AUSTRALIAN FARMER lobby National Farmers Federation has secured Coles as main sponsor of its annual congress in October. Coles, one of the two big Australian supermarket chains, was behind the A$1/L milk which caused a lot of angst among farmers. The Oz farm advocacy group Farmer Power argues the NFF faces a conflict of interest. “They are representing the agriculture sector and they should be fighting a lot harder and not going to bed with [Coles],” he said. Farmer Power was formed 18 months ago as an alternative to existing farm lobby groups and is lobbying for a better deal for dairy farmers who supply supermarkets like Coles.

WE ARE the envy of Aussies: a recent Dairy Australia conference on attracting investment to the sector heard a lot about the successful New Zealand dairy industry. One speaker said not many Aussies talk about the Australian dairy industry, whereas the NZ media feature dairy almost daily. In Australia it’s the mineral sector that gets all the attention. He says the only time dairy is knocked off the pages in NZ is when the All Blacks lose, and this doesn’t happen often.

WITH THE payout for the season looking likely to be below the six dollar mark, many dairy farmers need to be concerned. Six dollars was probably ok for many, but any less will see the hair going greyer and the worry beads being fingered. The banks have long cautioned that a six dollar payout was optimistic and we have seen Westland go the way of the banks. Though things could change for the better, there is little support for this. The real financial pinch won’t come until next year, but the decisions made by dairy farmers now could influence their ultimate financial position at the end of the season. DairyNZ has long urged farmers to revise their budgets, talk to the banks and carefully monitor spending. A two-pronged attack will make a serious difference: cull poor-producing cows, maximise pasture and look carefully at supplementary inputs. First question all spending, then look creatively at ways to make extra money. Last week there was an excellent seminar in Manawatu on dairy beef integration. Creative options canvassed at that seminar are mentioned below and detailed on other pages; they make sense. Calves should no longer be seen as a by-product of the dairy industry, especially when beef prices and demand internationally is rising. There are opportunities for dairy farmers to apply science that is readily available in genetics and general management. It’s time to look at the real data and not fall back on old myths and prejudices. Maybe this crisis will see the dairy industry look more closely at the beef industry and maybe beef farmers will learn a thing or two from dairy farmers. The natural synergy between the two sectors has never been fully exploited. Time for a change.

GOT SOMETHING ON YOUR MIND? GOT SOMETHING on your mind about the latest issues affecting our dairy industry? Put your pen to paper or your fingers to your keyboard, and let our readers know what you think. Contact us by either post or email. Don’t forget to put your name and address. Note: Letters may be edited. POST TO: LETTER TO THE EDITOR PO BOX 331100, TAKAPUNA, AUCKLAND 0740 OR EMAIL: dairynews@ruralnews.co.nz

Publisher: Brian Hight ...................... Ph 09-307 0399 Head Office: Top Floor, 29 Northcroft St, Takapuna, Auckland 0622 Phone 09-307 0399. Fax 09-307 0122 Postal Address: Published by: Printed by: Contacts: Advertising material: Rural News on-line: Subscriptions:

PO Box 331100, Takapuna, Auckland 0740 Rural News Group PMP Print Editorial: sudeshk@ruralnews.co.nz davef@ruralnews.co.nz www.ruralnews.co.nz subsrndn@ruralnews.co.nz

ABC audited circulation 27,726 as at 31.12.2013

ISSN 1175-463X

Editor: Sudesh Kissun ................ Ph 09-913 9627 Reporters: Neil Keating .................... Ph 09-913 9628 Tony Hopkinson ............. Ph 07-579 1010 Peter Burke....................... Ph 06-362 6319 Andrew Swallow ............ Ph 021-745 183 Pamela Tipa...................... Ph 09-913 9630 Subscriptions: Julie Beech ...................... Ph 09-307 0399 Production: Dave Ferguson ............... Ph 09-913 9633 Becky Williams ................ Ph 09-913 9634 Website Producer: James Anderson............. Ph 09-913 9621

Dairy News is published by Rural News Group Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Rural News Group Limited.

NATIONAL SALES MANAGER: Ted Darley ........................... Ph 07-854 6292, 021-832 505 ted@ruralnews.co.nz AUCKLAND: Stephen Pollard................... Ph 09 913 9637, 021 963 166 stephenp@ruralnews.co.nz WELLINGTON: Mark Macfarlane ............... Ph 04-234 6239, 021-453 914 markm@ruralnews.co.nz SOUTH ISLAND: Kaye Sutherland ..............Ph 03-337 3828, 021-221 1994 kayes@ruralnews.co.nz

DAIRY NEWS SEPTEMBER 23, 2014

OPINION  // 25

The right people trained the right way CRAIG LITTIN

FEDERATED FARMERS’ recent manifesto

talks about building a sustainable farm system giving us the collective means to progress as a nation. We can and we will be more than we are today, but to do that we need the right people trained the right way. Firstly we need to look at what we are trying to achieve. We need to have the young people of New Zealand believing that farming is the attractive career option it truly is. We also need to put our money where our mouth is by investing in education, science, research and innovation. There are great stories of highly skilled people who have worked through the agricultural industry who now run multimillion dollar businesses on attractive salaries. These opportunities are available to anyone with the enthusiasm, intellect and disci-

tions to be able to handpick suitable candidates through an interview process so that we get people with the right motivation from the start. Primary ITO offers courses that need to be taught by qualified instructors and be matched to the levels of job descriptions as defined by Federated Farmers, Beef + Lamb NZ and DairyNZ. For example, levels 1, 2 and 3 could signal competence to farm assistant level, then level 4 could match basic herd manager and level 5 farm manager. Forecasts are that by 2020 two-thirds of primary industry roles will demand a tertiary qualification. The challenge the figures throw up is how? Right now there is a fundamental misalignment between where opportunity is and the courses we are graduating. Last year we graduated 20 more people with degrees in music than people with degrees in a

“There are great stories of highly skilled people who have worked through the agricultural industry who now run multimillion dollar businesses on attractive salaries.” pline required to make it in the dairy industry, but we need sound education to get the right people into the industry. To do this we need to align the requirements and standards to fulfil job roles with the qualifications offered by primary industry training/ education institutes. Dairying offers a structured career path with clearly defined job descriptions and titles – farm assistant, herd manager and farm manager, to name a few. Few other industries are set up as well as dairying to offer support and salary packages for its workers to get ahead. Under the old cadet scheme we had the benefit of supporting the employers and employees onfarm through their first three years in the workforce. We need training organisa-

primary industry discipline. Primary industry courses need to culminate in a more attractive and respected qualification to attract students as well as employers. The courses need to have a definitive pass/fail so that employers have confidence in the qualification, and the pass/ fail must be made on the basis of a test rather than an open book assessment. As a final check, the farm employer can sign off the student/employee on practical aspects relating to their farm work/skills. Achieving this will restore faith to farm employers in the training delivered and will bring integrity back to the system. Dairy farms are multimillion dollar enterprises and cannot be a dumping ground for those who cannot find employment

elsewhere. While dairying offers a structured career path to become your own boss, not everyone will achieve or want to achieve this, so dairying also needs

to be an attractive career for those who don’t want to be their own boss. The right people trained the right way is what the dairy and other

primary industries need. • Craig Littin is Federated Farmers Waikato Sharemilker chairman. @dairy_news facebook.com/dairynews

Federated Farmers wants farming to be made attractive to young people.

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DAIRY NEWS SEPTEMBER 23, 2014

26 //  OPINION

A farmer’s plea for business-age internet CHRIS LEWIS

FARMERS AND

rural households are sick of inferior internet connectivity. Speed and reliable connection

Chris Lewis

are imperative for rural productivity and for empowering rural households. Farming generates 73% of New Zealand’s merchandise exports, so you would think the

GOODBYE NON CYCLERS

‘powers’ and investors would recognise a gaping hole when they see it. What is not ok is that while rural businesses and households are paying for the same services as urban dwellers, we are not getting the same results. Market research proves rural New Zealand is neglected. We are equipped with the latest devices – on average nine connectable devices per business and five-six of those connected at one time – but have limited infrastructure to use them. Chorus recently went to the rural market through Colmar Brunton to find out exactly what we are dealing with, and it should come as no surprise that they found we have the

as IRD reporting and payment, and reporting to regional councils on water use, we need to have confidence in the reliability and speed of our internet and mobile services. If not, we may as well delete the apps that keep cutting out on us and retire our latest technology to the back shed. We are playing a catch-up game, but the investment and work to date does not show a full grasp of the necessity for reliable broadband and mobile services to rural New Zealand. Reliable speed was at the top of the wish list for rural businesses and households in Chorus’s Colmar Brunton research; almost half of the respondents were

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same level of needs as urban businesses and households. Let me paint a colourful picture for you. You are paying your bills online with your preferred device, and the internet cuts out mid transaction – again! Did it go through? Now you have to log in again, which takes time, to check if it did; it could be another two days before you can rest assured you have paid your bill. Most frustrating for me is when I want to download data for farm programs, such as NAIT or an LIC herd program, but the internet doesn’t feel like it. Rather, it decides I must wait several hours or try again at 2am when the internet is running a bit faster? There I sit at my laptop pondering the reliability of the data being ‘sent’. Business, education and social development are online, but where is the capability for rural New Zealand? If we are required to do more compliance online, such

willing to pay extra for infrastructure. If that doesn’t scream ‘we need better connectivity, and we need it now’, then I don’t know what will. You wouldn’t catch someone from a large city saying ‘Oh yes I’ll pay extra for you to make that happen’, because they expect, and rightly so, to get what they pay for. Rural kids far from town need to do more learning online, but if the internet speed, or lack thereof, hinders their learning it affects their future. The next generation of farmers must become internet savvy to take farming into the next century. The enthusiasm is there and with the No 8 wire mentality there is no limit to what agriculture could achieve. All we need now is government and telecommunication companies to open the doors. • Chris Lewis is Federated Farmers Waikato provincial president. @dairy_news facebook.com/dairynews

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DAIRY NEWS SEPTEMBER 23, 2014

28 //  AGRIBUSINESS

Iwi raising sights on Waikato farming TONY HOPKINSON

A MORE aggressive approach to onfarm and off-farm investments by Tainui Group Holdings (TGH) is behind its February 2014 purchase of shares in Waikato Milking Systems, says chief financial officer Chris Joblin. (Tainui, Ngai Tahu and Pioneer Capital jointly hold a majority stake in WMS.)

The company holds all the commercial assets of the Waikato-Tainui iwi, reinvesting all earnings and dividends in the iwi. “The iwi of Tainui have a huge affinity with the land, it is part of our DNA, and from there we export through our fisheries, farms and forestry interests which form a large part of our portfolio,” Joblin told Rural News. Other investment opportunities get the onceover as they present them-

selves, even if not directly farming related. The land division has 3000ha: five drystock, five drystock and cropping, and two dairy farms, mostly in Waikato, one at Taupo. The dairy farms milk 1000 cows, one with a lower-order milker, the other on a 50:50 contract. When this contract ends it will be replaced with another lower-order milking contract, giving TGH more direct control over its properties.

UP FOR MORE CHALLENGE IAN MATHIESON and his wife Petula, who hail from Ruatoria, have managed Hangawera Station for TGH for eight years. He revels in the challenge of his recent promotion to rural operations manager, with its extra responsibilities. “I had been doing a little extra on the other farms and I like a challenge and I have enjoyed working for TGH.” The station is at Tauhei near Morrinsville an area of 700ha (eff) of rolling to hilly country, prone to

summer dries. For the past six years they have held an annual Polled Hereford bull sale selling up to 150 bulls annually. They are aged 30 months, 24 months and 18 months. All stock are pure bred, about 30% bred on the farm. The station has a policy of buying back all 18 month animals

when they have finished service. “We pride ourselves on the quietness of our stock and that they are easy to handle,” says Mathieson. The next sale will be on October 6 on the station at Tauhei where they will again be selling 150 mixed aged Hereford bulls. TGH offers free delivery until October 10. Tel. 027 287 7522

“We have a lot of land leased out and as they fall due we are going to take direct management and will integrate them with our present operations,” says TGH property manager Mark Jackways. Tainui wants to play a bigger part in Waikato farming, he says. The cropping land grows maize and barley, most of the maize going to TGH dairy farms and the balance sold. If the ground is too wet the crop is sold for grain. The cattle operation is evolving under the recently appointed rural operations manager Ian Mathieson. He manages Hangawera Station, the focal point of the cattle operation, and oversees the cropping programmes – arranging contractors, soil testing, and marketing and selling maize and barley from all the cropping farms. Mathieson liaises with staff, and arranges rearing contracts for young stock and buying and selling the animals on all the properties. TGH originally had a South Devon stud but the business now concentrates on Herefords. “I have an empathy and love for the breed… so the change was easy to make, and in the middle of Waikato the Here-

70%

Chris Joblin

fords always get a premium.” The dairy farms on Tainui Road will be changed to Friesian cows and the surplus progeny will be sold as fourday-olds at local stock sales or reared under contract and sold at 100kg, with the aim of TGH making more money from its own stock. One farm at Huntly runs 100 Hereford bulls through to two-year-olds and the other runs 200 stores and heifers. For six years TGH held an annual sale at Frankton stockyards to sell surplus store stock. After advice from selling agents Wrightson PGG this is now held at Te Kuiti, attracting premium prices.

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CueMate Full page ad FINAL ART.ai

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30 //  AGRIBUSINESS

Farmers, investors swoop on Northland dairy units PAM TIPA pamelat@ruralnews.co.nz

‘CHEAPER’ NORTHLAND dairy farms are

contributing to a surge of buying interest from dairy farmers looking to buy their first farm or investors extending portfolios, some from central North

Island, others from the South Island. Tony Grindle, Bayleys Northland rural manager, says it’s the biggest shakeup in the sector in 50

years with 50% of farms sold last year to buyers from outside the North. “It’s a big thing. Normally it is our farmers who go elsewhere,” Grin-

dle says. “But, put simply, people can’t afford to pay $50,000-60,000ha [for dairy land] unless they are in a privileged position. We have good farmland

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that will sell at $25,000/ha. That puts us back in the limelight.” Grindle told Dairy News he had hosted three different groups from Taranaki in the previous seven days looking at farms. That’s early in the selling season. “We are still emerging from winter and we don’t normally start showing farms until everyone has tidied up their calving and got their farms in order. So to have three groups up here from Taranaki in the same week shows us the trend will continue for those guys to come up here and buy our properties.” Outside buyers over the past two years include first time dairy farm owners from areas such as Otorohanga, King Country, Taranaki and Westland. They have also included corporate investors, ‘Auckland type’ investors and farming families “looking at selling some of their $10m-12m farms and buying similar production in the north for half that price”. Potential buyers are a mix, but so are farm prices in Northland. “The one thing in Northland that for people outside is a challenge is that our soil types vary massively. There are 17 different soil types through Northland and you could find farms that have two or three different soil types on the one platform. We have only pockets of very good dairy land and it’s spread out. “Prices vary massively from $30,000/ha to $10,000/ha.” The outside interest gives vendors the opportunity to sell to some higher net worth people than they might otherwise do, Grindle says. He plans to lead a roadshow taking a portfolio of 10-12 Northland farms to Waikato and Manawatu on October 15 and Taranaki on October 16. Bayleys did a similar roadshow last year selling 12 Northland farms. PGG Wrightson Real Estate’s rural sales manager in Whangarei, John

Bayley’s Tony Grindle says it’s the biggest shakeup in 50 years.

Duder, says there’s greater interest in dairy farms earlier in the season than usual, coming from outsiders and locals. “We probably sold the most dairy farms last year but to say they were all from outside is probably wrong. We did see a big influx into Ruawai of Ashburton people… because of the prices. In Northland we’ve seen good activity because of our land prices.” While many farms would not be as productive as further south, the good ones stack up. “There has been extra activity from outside the region but we’ve also seen local and younger farmers coming into smaller farms. The dairy scene has been particularly busy but so have support blocks and runoffs and interest is increasing in sheep and beef.” The interest in dairy farms has been across the board – farmers buying neighbour farms to expand, syndicates and first farm owners getting onto their own farms “which is awesome”. “Our prices range from $12,000/ha up to $25000$26,000/ha. In Ashburton for instance they are paying $50,000-60,000/ ha. Outside interest is great but we still have to get good local interest.” Duder says it is decisionmaking time for many, watching where milk prices will go. “The payout was good last year and that’s spurred things along. Hopefully if it’s above $6/kgMS we will see people interested in coming north.” @dairy_news facebook.com/dairynews

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32 //  AGRIBUSINESS

App gives farmers more insight

CRV Ambreed says its new app gives farmer herd mating data anytime.

WHOLE-HERD MATING data on hand,

via a mobile app from CRV Ambreed, helps farmers manage their herds anytime, the company says. CRV’s Insight-Mobile, said to be the first of its kind in New Zealand, is reckoned easy to use, convenient and smoothes data management. West Coast farmer Esther Sullivan says it is a faster and more practical way to handle

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information. “I have all mating information on hand so I can tell immediately by the calving date the sire of a calf, instead of the old system of stickers in notebooks with the cow’s last recorded mating and due date. “Also, as I do my own AI with InsightMobile, I can input all information at the shed as I inseminate. I can also dry off my herd (as a whole, in groups or

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individually), tag my heifers (or any other animal) and record empty cows in the shed as the vet pregnancy tests.” Sullivan says if she is outside the coverage area – and most of her farm is – all the information she records is saved ready to sync when she’s back on wi-fi. CRV Ambreed product manager Henk Huurnink says 130 farms now use the app.

Myob has begun running data feeds from Miraka Ltd, the Taupo dairy processor that produces whole milk powder for sale in Vietnam, China, Middle East and South America. The secure data feeds enable accountants to provide Miraka shareholders with year-on-year cashflow reports. “As part of the service, Myob will provide an electronic copy of the monthly statement, which includes milk production information,” says the general manager accountants division, Adam Ferguson.

Miraka chief executive Richard Wyeth says enabling data feeds for its shareholders heps with sound financial management. “Since Miraka began production in August 2011, we’ve gone from strength to strength, and we’re pleased to work with Myob in providing data feeds for our shareholders.” Myob also runs data feeds from Fonterra/RD1, Open Country, Tatua, Westland, CRT Cooperative, Farmlands Cooperative, PGG Wrightson, Ashburton Trading Society and New Zealand Farmers Livestock. And it runs data feeds from all trading banks.

Test-a-bull, move-a-bull, trace-a-bull

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STORAGE TANK maker Tasman Tanks has appointed Craig Hemmings, BAgSc, as dairy effluent sector manager. Hemmings, who has worked ten years agricultural companies, will run the company’s dairy effluent division in New Zealand. It started in 1996, designing, making and installing certified tanks. Hemmings has worked in start-up companies linked to onfarm waste treatment and waste to energy. Tasman Tanks has made tanks for many industries, and is now growing its dairy effluent storage tank operation. It built its first onfarm effluent tank in March 2012.

DAIRY NEWS SEPTEMBER 23, 2014

AGRIBUSINESS  // 33

Visionary’s trust LIC’s mobile app for gives $800k for herd mating ag studies LIC HAS launched an app that allows

MASSEY UNIVERSITY has received

$800,000 donation for agricultural research and scholarships. Venture Trust, set up in 1986 by the late Dr Eric Ojala, has been disestablished, the remaining cash being gifted to the registered charity Massey University Foundation, which will invest it in perpetuity for annual disbursement. The trust was holding $837,202. Ojala in 1941 graduated MSc at Massey, where he was the student association president. After military service in the South Pacific he was an agricultural officer in the Solomon Islands, then graduated BA in economics from Auckland University in 1945 and PhD in international agricultural economics from Oxford University in 1948. Massey conferred on him an honorary doctorate of science in 1977 and a Sir Geoffrey Peren Distinguished Alumnus Award in 1988. He was made a Companion of the Queen’s Service Order in 1986. He died in 2002. Professor emeritus Allan Rae, a foundation trustee on Venture Trust, worked with Ojala in the Centre of Agricultural Policy Studies. Rae says Ojala had “deep commitment to the development of agriculture. Ojala donated generously to the Venture Trust over the remainder of his life and this new sub-trust will pursue the same objectives he first established.” A sub-trust of the foundation has been

Eric Ojala

created in Ojala’s name. Its inaugural chair is Massey’s agrifood business director, Professor Claire Massey. It will support scholarships, research and projects that develop New Zealand land-based sciences, agricultural policy, strategy, trade, economics, farm management, food technology, production and innovation at Massey. Professor Massey describes Ojala’s work as visionary. “He set up Venture Trust to contribute to a better understanding of New Zealand trade in agriculture and food products and this objective remains as relevant now as when Ojala established it.” Foundation director Mitch Murdoch says the investment should return about $40,000 annually for disbursement.

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farmers to record key mating events from a mobile device. Minda Mating is the fourth app in the co-op’s series, designed to free farm records from the office so farmers can access and update more information in real time. Rob Ford, LIC’s general manager of information automation, says the app allows farmers to record premating heats, DIY inseminations and any natural matings they see, from at home, shed or onfarm with no internet connection. “Recording can be done on the spot, in real time. No need to carry a pen and paper, and no need to update the records back in the office later.” When the app is open and in range of internet, information will automatically upload to the farm’s web-based records at www.minda.co.nz for the farm manager to approve. “Pre-mating heats… can help farmers to pick cows on heat during AB, identify any non-cycling cows

Minda mating app.

before mating starts and ultimately lead to improvements in the herd’s 3 week submission rate and 6 week incalf rate. “Recording pre-mating heats [may not get done] because it often means more time sitting in front of the computer…. With the app, it will be quick and easy.”

Minda Mating is available for the latest Apple and Android mobile devices, with free download from the app stores. Its use is at no extra charge for farmers subscribed to LIC’s MindApro software, no matter how many staff download it. @dairy_news facebook.com/dairynews

DAIRY NEWS SEPTEMBER 23, 2014

34 //  MANAGEMENT

Putting a spring into production BALA TIKKISETTY

SPRING IS a key time for fertilising pasture and farmers need to take a considered approach to help protect the environment and their profits. Too much fertiliser, or fertiliser applied at the wrong time or in the wrong place, can end up detracting from the health of waterways via run-off or leaching. Such losses also mean the hard cash spent on fertiliser isn’t yielding the maximum economic reward. But too little fertiliser can compromise production. Use of a sound nutrient management plan can help avoid these sorts of problems. Before buying fertiliser, I recommend farmers look at their nutrient budgets and talk to a fertiliser reps about their individual properties. But there are general strategies farmers can use to help avoid problems such as nitrate (N) leaching to ground water, excessive phosphorus levels in soil (measured by Olsen P) and stock poisoning. While stock urine is the main contributor to nitrate leaching, losses can

DP0009 Harmony 200x265mm.indd 1

also be markedly increased if too much N fertiliser is applied. Losses to groundwater are likely to be highest during times of excess rainfall and low soil temperatures that limit pasture growth and N uptake – autumn, winter and early spring. So farmers can reduce the amount of N leaching and runoff from pasture by not applying fertiliser when plant Bala Tikkisetty uptake of nitrogen is low, such as when soils are saturated, during heavy rain, colder periods and when soil temperatures are low. Other measures include: ■■ Applying N fertiliser in split dressings (a little and often) ■■ Making sure farm dairy effluent is applied at low rates and to a large enough area ■■ Adjusting fertiliser policy for effluent irrigated areas to account for the nutrient value of effluent ■■ Standing cows off pasture during wet weather and capturing their effluent for later application

Fencing off wetlands and open drains. On the other hand, phosporous (P) is not a significantly ‘leaky’ element leaching through soils because it binds tightly to soil particles. This means P gets into waterways mostly as a result of erosion. So any bare soil on sloping land creates a risk of P transport to water bodies. Tracks and races can also be a source of P runoff to water. The risk of such runoff is obviously higher if Olsen P is excessive. Farmers can reduce the amount of P running off by ensuring they don’t apply phosphate fertiliser when heavy rain is forecast. Farmers should also: ■■ Apply fertiliser when the grass is in an actively growing phase ■■ Make sure fertiliser isn’t applied near waterways ■■ Leave a grassed buffer strip between paddock and waterway – the strip helps to filter out some ■■

Dairy effluent should be applied at low rates.

of the nutrients before the runoff reaches the water ■■ Control runoff from tracks, races, feed and stand-off pads. Also remember fertiliser can be poisonous to stock if ingested directly. Make sure animals don’t have direct access to fertiliser bins or other storage facilities and don’t graze pasture if fertiliser particles are visible; it’s best to wait until sufficient rain has washed the particles into the soil.

Voluntary guidelines and codes of practices, developed by the farming industry are helpful in managing nutrients. These include the Code of Practice for Nutrient Management, Fertmark and Spreadmark. • Bala Tikkisetty is a sustainable agriculture co-ordinator at Waikato Regional Council. bala.tikkisetty@waikatoregion. govt.nz @dairy_news facebook.com/dairynews

17/09/14 10:23 AM

DAIRY NEWS SEPTEMBER 23, 2014

MANAGEMENT  // 35

How high is your water cost? Water quality: some issues worth taking a look at include;

NATASHA MAGUIRE

THE RECENT crackdown on water exclusion penalties

has highlighted the need for good quality shed water. Consumer awareness is driving a demand to know where food comes from, and the integrity of food supply chains. That said, penalties applied now for water exclusion are able to be claimed back, provided approved measures are in place before the end of the season. It is worth seeking good advice and taking time to find a reliable long term solution that will work on your farm without causing other problems. Water onfarm goes beyond regulation of water quality at the shed. Poor water quality silently taxes production where animals are involved: for many it’s an opportunity to come clean with your water. Whilst some farms are blessed with beautiful spring/ bore water, this may not benefit your production at all. Is your farm water of sufficient standard? What do your stock drink? If you have E. coli in your farm dairy water, your supply is likely to be contaminated with more than E. coli, which is simply an easy of faecal matter in water. Other organisms from surface water contamination include other gut organisms such as salmonella, giardia and viruses more difficult to test for. It is important that you use a legal and approved means of chlorination. Tri-chlor, trichloroisocyanuric acid and pool chlorine tablets are not suitable or permitted for farm dairy water. So how do you get off water exclusion? To ensure you can do this repeatedly – including on a ‘bad’ day – you need: ■■ Clarity requires removing sediment. Sediment in water gets you a ‘fail’ in the clarity test, and it wrecks stuff. Your farm needs filtration that meets pressure and capacity demands. Sediment will lead to leaking trough valves, sand in pumps and vacuum pumps, etc. ■■ E. coli treatment. Treatment of water ensures water won’t harbour pathogens. While a variety of treatment options exist, only chlorination ensures a residue that persists for stored water. Consistent dose and contact time are important, so ideally this would happen prior to tank storage. Not all chlorination is equal. Be sure to use an approved product, as swimming pool products are not only full of harmful UV stabilisers, they are also generally more expensive to use. ■■ Mineral removal. Colour in water can be due to minerals or tannins. In the case of river or creek water, tannins from decaying leaves may be an issue at certain times of the year. For shed water, it may be best to use an alternative source. Where minerals are implicated, removal of minerals such as manganese, iron and copper will give you unexpected benefits.

ISSUE Water Quality (shed and stock) Farm Dairy Water Exclusion (E. coli, clarity, colour) Shed staining brown, blue or black staining or bad detergent action Insufficient water

Dirty Troughs

SOLUTION Identify source/s. Test plant and stock water to identify issues. Water treatment and chlorination. Keep lids on tanks and clear vines and trees around tanks. Ensure bores are cased and cannot be contaminated by surface water. Seek professional advice.

Know your issues. This will help in resolving them. Removing sediment and minerals as well as bacteria from water saves on penalties as well as improving animal health and hidden costs. Removal of minerals causing staining, improved plant wash, reduce or eliminate line blockages and increased stock water intake and milk production.

Water treatment. More troughs, more tanks, bigger water lines, better pumps and infrastructure. Ensure reservoir volumes, watering points and recovery is sufficient for stocking rate. Clean troughs. Trough plugs for feed pads. Chlorinate water. Trough covers during effluent irrigation.

reliable milk cooling, production gains from stock being watered, less hidden costs e.g.: broken fittings. Stock consumption increases and milk production increases.

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Talk to your local DeLaval dealer today and start imagining more. Call 0800 222 228 or visit www.delaval.co.nz Natasha Maguire, Farm Medix, testing shed water for mineral contaminants.

BENEFIT

DAIRY NEWS SEPTEMBER 23, 2014

36 //  MANAGEMENT

Farmers in it for love, not money Environmental stewardship or quality of life are important to many farmers.

FARMERS ON properties with a net annual profit less than $50,000 say that ‘minimising pollution’, ‘improving the condition of the property’ and ‘ensuring employees enjoy their job’ are more impor-

tant than ‘expanding the business’ or ‘making a comfortable living’. This showed up in research by Lincoln University senior lecturer in farm management research Dr Kevin Old and

research fellow Dr Peter Nuthall, who asked farmers about farm succession and governance. The researchers say the less-profitable farmers may have largely dismissed as impossible

making more money or growing the business. Instead their ‘job satisfaction’ or ‘meaning’ comes from notions of environmental stewardship or quality of life. Notably, farmers on properties with lower returns also gave a low priority to ‘attending field days’. Topping the list for higher-profit farmers (net annual profit of $100,000$150,000) was ‘important to make a comfortable living’. And they ticked ‘minimise pollution’ just below ‘ensuring employees enjoy their job’. Bottom-ranked – a big to the researchers – was ‘it is important to pass the farm to family’. Two surveys covered the entire country and all farm types. One survey was done in 2006 (700 replies analysed), the other in the latter half of 2013 of 2000 farmers with a response rate of 36% (805 farms). New Zealanders have always leaned towards family farms, the university says: ownership systems were simple, and most farms kept one or two people fully occupied. Likewise, their leaning was to farming ‘as a way of life’. The research sought to show whether this traditional model has changed and by how much. Kiwi farmers are ageing, the surveys showed: the average age in 2006 was 50, but in 2013 this was 53. The average farm size has risen from 557ha in 2006 to 591ha in 2013. The average number of people working on the farms has also increased. In 2006 it was 2.05, in 2013 it was 2.76. Changes in employment levels per farm are most pronounced in the dairy sector. This is no doubt due to sector growth: dairy production increased from 951.5kgMS in 2006 to 1134.3kgMS in 2013 (compared with a drop in lambing productivity from 130.3% to 127%). The South Island in particular has seen a notable increase in average farm size, underscoring

that 3.2% of all NZ farms (all dairy operations) now have eight or more people working on them. Across all farm types, 25% are run by a single person. Farms with two people make up a further 41% and three person farms a further 13.5%. Almost 80% of NZ farms are still low labour operations. Farmer ownership duration “is probably increasing,” the researchers say. Average duration of ownership is now 25 years. Likely also changing is the number of farms each farmer has an interest in. Nearly 60% of farmers are involved with only one farm, but the average across all farm types is 1.75 farms. This number is increasing, however, largely due to the growth in dairying: some farmers hold an interest in at least seven farms. Family farms have a variety of ownership systems: private companies are on the rise – 14% of respondents have such a company. Other ownership systems may include a trust; infact, trusts factor into 47% of all properties in one form or another. Family ownership systems have the farmers themselves as the chief decisionmakers, as seen on 71% of farms, though they often consult other family members before acting. While farms are getting larger and farmers are staying longer on their farms, ownership systems largely remain relatively simple, and farmers continue to make most of the decisions on their own. Likewise, farmer objectives probably haven’t changed much, although the extra emphasis on the environment and sustainability was surprising. “If you believe all you read you would get the impression New Zealand farming is going corporate,” says Peter Nuthall. “But, while it is true that some corporate or quasi-corporate family arrangements exist, [most] farms are simple family affairs.”

DAIRY NEWS SEPTEMBER 23, 2014

MANAGEMENT  // 37

New tricks no problem for mature innovator TONY HOPKINSON

JOHN GUY, of Hamilton,

shows you can teach an old dog new tricks. At age 66, recently laid up after ankle surgery – “there are 32 screws in there” – he bought and learned a new laptop computer then devised a novel dairy shed effluent system. This system has the goahead from the regional council. Guy is project development manager for a family group with nine farms on the outskirts of Hamilton running 2500 dairy cows. They also have a drystock farm at Whangamata with

an Angus stud that provides service bulls for the various farms. There are seven dairy farms with lower order milkers and two with 50:50 sharemlkers. All young stock on all farms are grazed off. Guy left school aged 15, farming all his life and working the past 26 years for his present employer. He is also a competitive ploughman to New Zealand finals level. His job entails all general management of the farms, doing minor repairs and organising any major repairs including cowshed and milking machine repairs.

When two of the dairy farms recently needed upgrades to their effluent processing and disposal, to council specs, Guy used his laptop and his savvy to ‘look outside the square’, devising and installing new systems, one now running, the other soon. “It is weeping wall system with my improvements I thought were important: I wanted the material to go through the system slowly and I wanted to use gravity as much as possible to avoid the use of electric pumps to shift material.” Effluent travels to a storage pit and enters at a midway point. The pit

with the weeping wall is 28m long with an 8m ramp for emptying; 20m is level. The pit is 8m wide. Guys first innovation is a 20m weeping wall opposite the entry point, with all the green water falling into a 20m long, 80mm wide channel, 150mm below the screen’s base, emptying to a pumping station. “By the time the material gets to here, 80% of the solids are retained, leaving 20% green water.” This is then pumped around the farm through travelling irrigators or to a storage pond holding 4 million L, to be irrigated when the weather is suit-

John Guy

able. Long-term plans are to return some of this water for hosing down the yard and adjacent feed pads. The weeping wall panels are Guy’s own design. They are 1390mm square, galvanised and set between RSJ galvanised uprights. The pipes in the panel are 12mm apart which Guy believes is the optimum distance. “I have made the panels

square so a farmer can choose to have the pipes horizontal or vertical so they are easily lifted out with a frontloader.” Also needed was a dry storage area adjacent to the liquid effluent pit. Both sheds have adjacent feedpads, each for 500 cows. During scraping, if the material is wet it can be put into the weeping wall area or if dry can be put in the storage area

to be disposed of later. Any solids removed from the pit will also be placed here. “I have achieved what I wanted, containing all the effluent from the dairy yards and feedpads, processing it for later disposal as solids to all the farm or when the weather is OK using our normal irrigators.” Each farm now has storage for three months. Tel. 07 829 4761

DAIRY NEWS SEPTEMBER 23, 2014

38 //  MANAGEMENT

OAD, young stock care lift herd reproduction GARETH GILLATT

STRATEGIC USE of once-a-day milking (OAD) and careful treatment of young stock enabled a Northland farm to maintain 80% six-week in-

Jason and Karen Bradley

calf rate over the last four years through two droughts and one exceptionally wet winter. Jason and Karen Bradley produce 71,300kgMS from 200 cows on their 100ha (eff) farm northwest of Maungaturoto.

They won this year’s Northland Repo Rock contest for best herd reproductive performance. The Bradleys told 40 people at a field day on their property that taking care of young stock and their proactive approach

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to managing cow condition have made a big difference. They have been dairying for 20 years – 10 years on this property – but tend to have a young herd: 50% are 2-3 years old, and a lot of their effort goes into replacements to allow for some selling for extra income. They rear 40-50 calves every season, meaning calves need to get the best start they possibly can. The calves get as much milk as they can drink – young stock 7L/day average from entering the calf shed to weaning. While it is common to base rearing on an average weight, Karen says they aim to have all young stock at the same level and will put smaller animals on a combination diet of milk and meal while others are weaned off to make sure they hit their production weights. “If animals aren’t fully grown out when they go back into the heard they are harder to get into calf and take longer to meet their potential production.” Making sure calves aren’t affected by a worm burden is also crucial. The calves are usually moved once a day ahead of the cows and are regularly drenched for worms. Correct drench choice is critical: the Bradleys switch between different products depending on the time of year, using a triple-action or dualaction formula to avoid drench resistance in worm populations. Drenching continues long after stock go to a grazier in December, transitioning to a pour-on product every two months. Light Jersey bulls are put in with heifers in October to make sure calving goes smoothly for the first calvers. In fact calving was so smooth with the progeny from Jersey bulls that Bradleys put them over the entire herd in 2010, especially after noticing a lot of difficult births from Hereford bulls. A major change happened in 2010 in the way the couple handled reproduction management: Karen’s father died in the build-up to mating, making it difficult for

them to focus on the farm. He was important to them both, Jason said, and they ‘dropped the ball’: stock lost condition and the feed wasn’t there to get them on a rising plain of nutrition ahead of mating. Their vet Brian Lowe, a senior vet at Dargaville Veterinary Centre, pointed out during their metrocheck, “the cows were still milking well, we just didn’t see it”. “Brian asked us what we were going to do. There was no feed and he suggested putting them on OAD instead.” They decided OAD milking the entire herd was the solution, enabling them to keep their calving pattern tight, Jason said. Cutting that to young stock only during the past two seasons gave them flexibility in how they handle the herds, but is now leading to tough management decisions. Maungaturoto area has had a wet spring – 150ml in August and 200ml in September – resulting in a hole in the farm’s pasture wedge and average cow condition of BCS 4.5 for cows four years and older, especially given the operation’s nine week calving spread. They could put the entire herd on OAD but that could cause more problems as they intend doing that in December to get through summer. “I don’t want to put the cows on OAD, then TAD, then OAD again, but if we don’t get sunshine and grass growth in the next 10 days I’ll have no choice,” Jason said. “Tight calving patterns cause their own problems when there is no grass, its wet and there’s not the feed there to feed the stock.” DairyNZ Northland regional manager Tafi Manjala, chairing the day, commended the Bradleys on their focus on reproduction, noting how good they are at picking when to put cows up. They tailpaint cows before they go from the colostrum mob into the main mob, observing the herd three-four times a day to make sure they don’t miss a heat.

DAIRY NEWS SEPTEMBER 23, 2014

MANAGEMENT  // 39

Taskforce Green workers invaluable in clean-up PAM TIPA pamelat@ruralnews.co.nz

FARM HELP teams from a Work and Income scheme have been doing an “amazing” job in Northland helping farmers hit hard by winter floods, says Northland Rural Support Trust coordinator Julie Jonker. Those farms include at least 100 dairy farms with half experiencing medium to high impacts, according to DairyNZ. Milk production is down only 1% in Northland, however, which means farmers “are doing all the right things,” says Jonker. Feedback from farmers about workers in the

Enhanced Taskforce Green scheme is “they are an awesome bunch of guys working really hard, and happy to use their initiative when they need to”. The scheme has three teams from Kaitaia to Whangarei making a huge difference, says Jonker. “I can’t speak too highly of them… they have worked so hard, these guys. They have been trustworthy, hardworking, and keen; the feedback has been absolutely positive.” The crews have been repairing fences, clearing trees and debris and cleaning out water troughs. The crews are helping under a scheme organised by the Ministry for Social Development

(MSD) through Work and Income. The Northland Regional Council is acting as the employer and the help becomes available when an event is classified as medium scale. The Rural Support Trust, DairyNZ and Beef + Lamb NZ had to convince MSD of the need. Some dairy farms have struggled putting back damaged pastures. “Some have sent cows off; they’ve sent them away for grazing; that impacts heavily because it means they aren’t milking,” says Jonker. DairyNZ is urging farmers to act to reduce financial impacts, she says. They need to talk to their banks about making sure

the cows are as well fed as possible so that body condition scores are high enough for successful mating in October. Otherwise some will have a double whammy because they would have been mating in July when the floods hit. The Rural Support Trust will officially be involved with the event until November. The trust is encouraging farmers to make contact if they need help. “Everybody is so busy reacting to the events and getting things done. Afterwards, with something like extra rainfall, they’ll suddenly find they are stressed because they think ‘oh no not again’. Or

More than 100 Northland farms are still impacted.

often people won’t even know why they’re feeling stressed. If people are getting to the stage where stress is an issue and they’re having trouble making decisions they would normally be able to

make, just give us a ring. “Our ag facilitators are able to come out; they’re a person to talk to, they’re available to bounce some ideas off. It may just need ratification that what they’re doing is right.

“When you’ve have been hit this many times in one year you begin to doubt yourself. “It has been a very difficult year, testing farming skills to the max.” Tel. 0800 787 254

DAIRY NEWS SEPTEMBER 23, 2014

40 //  MANAGEMENT

Heat detectors challenge traditional offerings

Heatmark Ero application block system.

TAIL PAINT may no

longer be the cheapest means of heat detection, says Rurtec principal Ian Carr. The company makes heat detectors which it says close the cost gap:

its Heatmark Ero costs $1+GST per cow vs tail paint, including touching up during the round. Says Carr, “Any spending to get cows in calf early and tighten up the calving pattern is well

worth it. Because of the importance to profitability of getting them back in calf, many farmers use heat detectors and tail paint together to help detect all cows when they are on heat.”

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When hair falls out as it does during the spring moult, getting heat detectors to stay on the animals can be challenging. Getting adhesive all the way to the skin certainly helps. “Traditionally this has been done using caulking gun glue. But there are many stories of the mess people have got themselves into doing this and it’s not a job people look forward to. Now you can have heat detectors that stick around without getting yourself covered in glue.” The new application block system together with the spray-on glue raises the bar for cost effective heat detection, Carr says. Rurtec’s Heatmark ERO involves a spray-on adhesive then applying

the detector with an applicator. When the detectors are loaded into the chamber, the applicator block picks up the top detector and it’s shaped for easy, mess-free applying of the detector across the backbone. This combines the convenience of a quickcure adhesive with the proven scratch, or rub-off, system for detecting heats. The glue cures quickly. The company says the detectors give better differentiation between activation by a true standing heat and other rubbing: the detectors require a lot of rubbing from a true standing heat to fully activate. Heatmark selfadhesive detectors are also available. Tel. 0800 RURTEC

Short gestation shortens calving interval FARMERS WITH a lot of calving still to do after 10

weeks should put the tools in place this mating period to get back on track next season, LIC suggests. The co-op cites, as an example, Takaka farmer Corrigan Sowman, who is reportedly “surprised by the power of LIC’s short gestation length semen in its ability to compact a calving interval within a season or two”. Entering his sixth week of calving on September 4, Corrigan was 88% done, having calved 720 of his 820 KiwiCross cows. The farm had calved 120 more cows than on the same date two years before; Sowman predicted he’d be 100% calved by September 26. LIC quotes him as saying short-gestation bull semen was a good alternative to live bulls. “It’s going to be a valuable tool. We’ve seen plenty of instances of cows calving in 265-268 days, substantially earlier than the standard 282.” But farmers must appreciate there is a risk that replacement calves would be mixed in with shortgestation newborns, straining feed supply. “We used short gestation length semen for three weeks last year. Because it was our first year, we didn’t appreciate how early some of these [cows’ calvings] were going to be.” Corrigan had DNA-profiled his herd using GeneMark several seasons ago, confirming that stock had been accurately assigned. The early calvings from the short gestation product pressured the feed situation, Sowman says. “If I’d understood what short gestation might do for my calving spread I’d have calved with another 50, 70 or 100kg of average farm cover. So I’d have manipulated that feed supply on start date.” Sowman says the short gestation suits anyone wanting to allow their cows more time to recover before the next mating period, and the trickle-down effect of a better six-week in-calf rate could be expected. “We’ve got 12% of the herd left to calve, so the beauty is we’re now doing other things on farm.”

DAIRY NEWS SEPTEMBER 23, 2014

ANIMAL HEALTH  // 41

Short-gestation semen does the trick PETER BURKE peterb@ruralnews.co.nz

DAIRY FARMERS

stand to gain large benefits from using short-gestation semen: increased days in milk, more time between calving and planned start of mating, and no looking back to routine inductions (banned from spring 2015).

That was the message from LIC’s farm solutions manager in Whanganui/Rangitikei/ Northern Manawatu, Sam Tennent. She told a Beef + Lamb NZ dairy integration seminar near Marton last week that short-gestation semen is one way for dairy farmers to increase financial gain and create long term benefits in a herd.

Sam Tennent

Short-gestation semen also allows more time between calving and planned start of mating.

Research into short-gestation semen has been going on for about ten years at LIC, across all the dairy breeds and Hereford and Angus bulls. Tennent says research into short-gestation semen has been going on for about ten years at LIC, across all the dairy breeds and Hereford and Angus bulls. Gestation

is about 40% heritable and LIC has emphasised breeding bulls with shorter gestation breeding values. A good example of the benefits of shortgestation semen is a farmer with 500 cows who chooses to extend the AI period by two weeks using LIC’s ‘Marker’ product. This dairy cross Hereford sire is designed to produce marked offspring highlighting the end of replacement calves being born. “If normal submission and conception rates are assumed, this farmer could mate about 130 cows to this marker semen and have them calve on average five days earlier.

“This equates to 360 more days in milk for this herd. If we predicted the cows were averaging 1.5kgMS, and on a $6 payout, the farm could expect just over $3000 extra income, not to mention the increased time the cows have to get back into cycle before the next mating period.” Tennent cites, as a good example, a farmer who regularly uses shortgestation semen, doing six weeks AI to premier sires, generating his replacement calves, followed by three weeks natural mating with the bull. “He then he pulls the bulls out and tails off with a further two weeks AI to short gestation Jersey semen. He claims he is mating over 11 weeks to calve in nine

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weeks and enjoys how well those tail-end calves recover from calving – a lot better than using an induction.”

Tennent says shortgestation semen is popular in her region, giving farmers another option to improve profit.

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DAIRY NEWS SEPTEMBER 23, 2014

42 //  ANIMAL HEALTH

Teat washing helps milk quality TEAT PREPARATION

before milking can involve the cleaning (and/or massaging) of teats before the cups are attached. It guards against compromising milk quality – imagine the effect of attaching cups to dirty teats – and it helps the cow produce oxytocin, the milk let-down hormone. Stimulation of the let-down reflex results in a quicker milk flow. For teats to be cleaned it must be done correctly: teats need washing with water and drying with individual paper towels. The NZCP1 ‘Code of Practice for the Design and Operation of Farm Dairies’ states: “Animals’ teats must be clean and should be dry before

applying the clusters. Teat washing facilities must be available for this purpose and must be adequately maintained.” Muddy tracks and races cause muddy teats. Most New Zealand dairy farmers wash only those teats that are visibly dirty. Teat washing has the following benefits: Prevents milk quality issues. Ensuring teats are clean before attaching the cups will maintain milk quality. Reduces animal health issues. Ensuring teats are clean before attaching the cups will also: ■■ Reduce risk of teat damage ■■ Reduce mastitis associated with teat damage

or excessive dirt on teats. ■■ Reduces the time spent teat washing and the time spent milking by preventing dirty teats to begin with. In New Zealand there are two teat washing practices: ■■ Universal washing, where every teat is washed. ■■ Strategic washing, where only those visibly dirty are washed. Strategic washing is most commonly practiced in New Zealand. Strategic washing of dirty teats will save time, but means that an opportunity to stimulate the udder through handling/massage – one way of encouraging milk

let down – is lost. Drying of teats after washing is essential as it reduces the chance of mastitis, and the risk of milk contamination. Dry teats also interact better with the teat cup liner resulting in better milking and less harm to the teat itself. Neither of these practices should be

confused with bulk washing (washing cows and teats with a pressurised wash-down hose on entry to the bails or in the collecting yard). Bulk washing of udders is not an acceptable practice as it can compromise milk quality by washing bacteria off the flanks and udder into the cups. – DairyNZ

Clean teats guard against compromising milk quality.

PREVENT, TREAT TEAT DAMAGE TEAT DAMAGE refers to teat sores or teat end damage, and it is a major cause of mastitis. It is usually caused by faulty milking machinery, overmilking, exposure to mud and water, or injuries. Teat damage can make milking a painful process for cows, and steps should be taken to prevent it, but if it is present it should be treated.

Animal welfare considerations mean that it is important that teat health is monitored and any issues resolved. Visually checking teats during milking will alert you to any problems. Although it is not always practical to check teats when clusters come off, many conditions will be more obvious at this stage.

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DAIRY NEWS SEPTEMBER 23, 2014

ANIMAL HEALTH  // 43

Look out for theileriosis THEILERIOSIS IS

now widespread in the northern half of the North Island. DairyNZ says the Hauraki Plains, south of Auckland, around Hamilton and the west coast north of Raglan are “hot spots” for the disease. It has also been seen in Northland, Bay of Plenty and the wider

The signs of the disease are those of anaemia due to the damage theileriosis causes to the red blood cells. Cows will have yellow ( jaundiced) or pale mucous membranes; check by looking inside the vulva. Other signs include lethargy, dull/depressed appearance, hollow sides from not eating, loss

associated with anaemia in cattle in Australia and Asia but has not been detected in New Zealand prior to 2012. Most animals carrying Theileria will not show any signs of illness. Tell tale signs include cattle straggling on the walk to

the shed, pale vulva and pale udders noticed at milking. Stress and movement of affected animals should be minimised as their reduced capacity to transport oxygen around the body can lead to collapse and death.

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There are a number of causes of anaemia and its signs can be similar to those of other diseases. Farmers who suspect they have animals with anaemia should contact a veterinarian for advice.

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PREVENTION AND CONTROL ❱❱ Ticks are the main means of spreading Theileria. Biting flies may also spread the parasite between cattle. ❱❱ Tick populations have increased over the mild winter. ❱❱ Farmers in affected areas should be regularly checking their stock for ticks and treating animals as necessary. ❱❱ Killing ticks is strongly advised. When applying tick products use according to label instructions. ❱❱ A combination of tick prevention and pasture management is the best way to reduce numbers of ticks exposed to cattle. ❱❱ Risk of the disease is minimised by good general stock management and applying tick products when necessary, especially when moving cattle to new grazing.

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DAIRY NEWS SEPTEMBER 23, 2014

44 //  ANIMAL HEALTH

BVD can be costly BOVINE VIRAL diar-

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rhoea virus (BVD) is a costly infection. DairyNZ says it may affect up to 60% of dairy cows and 90% of herds; estimated annual cost of BVD infection to the New Zealand dairy industry is $23m, or $11,334/herd BVD limits production, causes reproduc-

tive losses and may lead to death; effects include diarrhoea, impaired reproductive performance, reduced immune function and mucosal disease Control includes removing infected animals, vaccination and closed herd. DairyNZ says this disease can be transmitted

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vertically, i.e. between generations, so management starts with the planning of breeding – only to breed, especially replacements, from cows in good health. The BVD virus can cross the placenta to the foetus so an infected dam will produce an infected calf. The health status of all cows should be considered in herds where BVD has been found or suspected. An added complication is that any cow or heifer with a new infection during the first 150 days of pregnancy will produce a calf with an immune system tolerant of the virus. It will be persistently infected, ill thrifty and secrete viral particles, so it is a significant source of infection of other naive

comingled, as happens when calves and heifers are pooled from different farms in commercial rearing enterprises. Management of BVD requires good biosecurity practices and a robust herd health record system. Bulk milk can be screened for presence of the virus or antigens to indicate relative risk in a herd whilst individual animal tests are valuable in identifying carriers. For problem herds, vaccines are available. BVD has become endemic in many cattle populations around the world but it can be managed successfully. In Scandinavia and the north of Scotland total eradication campaigns are underway with some success. For the individual New Zealand farm, having a

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animals. Infected heifers that survive long enough to calve have been shown to have lower rates of growth, produce only half the expected milk in the first lactation, suffer multiple other infections and have a shorter lifespan. The virus is transmitted via many body fluids so horizontal transmission to naive herd mates is a risk especially when animals from different sources are

closed herd policy, screening the milk vat annually, only accepting animals tested free of the virus onto the farm (including bulls) and home rearing all replacement stock are essential components of a control strategy to remain BVD free. The runoff, where contact with other animals can never be excluded, may be the weak link in the chain, says DairyNZ.

GOOD PRACTICE: Good practices for animal health must include: ❱❱ Manage the herd to resist disease ❱❱ Prevent entry of disease onto the farm ❱❱ Isolate sick animals ❱❱ Have an effective herd health management programme in place ❱❱ Practice good hygiene and pest control ❱❱ Use all chemicals and veterinary medicines as prescribed ❱❱ Train people appropriately.

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DAIRY NEWS SEPTEMBER 23, 2014

ANIMAL HEALTH  // 45

Breed of choice for mating decisions WAIKATO DAIRY

farmer Doug Courtman believes Holstein Friesians offer all-round profitability for dairy farmers, including their milk, domestic-market beef and for live export. The breed offers any dairy farmers what they require, from the smaller framed cow for pasture consumption to the larger, high producing cow for high feed input systems. “Holstein Friesian herds are amongst the most profitable in the country,” he says. The breed’s milk has a high protein-to-fat ratio that helps raise its value. Courtman says in the 2012-13 season the breed, on average, earned 5 cents more per kgMS than the Fonterra average of $5.84, based on seasonal production statistics published by LIC and DairyNZ. He says, based on figures from Fonterra in July 2014, the breed could earn 8 cents more than the $8.40 payout for the 2013-14 season – applying the 2012-13 production statistics. “The value of protein

in type assessments the fewer animals to the was almost double that animals that are too tall hectare, so not as much of fat in Fonterra’s milk are being knocked back. damage to land. payment for last season Fertility is also a Liveweight is not [2013/14].” Courtman says misnomer that follows the really an issue, he insists. the valued component breed, particularly when “Bull breeders and ratio (VCR) was 0.51, overseas bulls are used. meaning the fat was worth breeding companies are “Fertility in the breed breeding bulls to suit 51% of the protein. is improving “Fonterra has worldwide. set the VCR for the “Bull breeders and The bulls 2014-15 season at breeding companies are brought [into 0.43, which means breeding bulls to suit New Zealand] that protein is are selected worth even more.” the New Zealand dairy carefully. As Even going into a industry including a with any breed potentially low milk smaller, efficient animal or cross, make payment season, the value of protein with a lower liveweight to sure the heifer or cow is in is at least twice suit pasture farmers.” that of milk fat. – Doug Courtman good condition and she will High volumes of have a much protein will ensure better chance of getting the New Zealand dairy the Holstein Friesian in calf.” industry including a breed maintains an above Courtman recalled smaller, efficient animal average payout, he says. US-bred bull O-Bee with a lower liveweight Arguments against the to suit pasture farmers. profitability of Holstein Manfred Justice-ET Alternatively, farmers can Friesians include that it (also known as O-man) have the larger-framed takes more energy (food) as an example. Not only to produce milk and being animal that produces did O-man make it onto more milk if they use heavier the cows can do the New Zealand RAS a high input system of more damage to land. (ranking of active sires) feeding. “Fewer cows, fewer list with a high breeding “The extremes [of feet, same production,” worth, he also had high size and liveweight] Courtman says to fertility breeding values at are no longer there,” detractors of the breed. the time (mid-late 2000s) The income from the milk he says, noting that in and he retains a fertility North America breeders produced outweighs the breeding value of +9.1. His cost of feeding the animal, acknowledge the cows are New Zealand-bred sons getting too big and that he says. More milk means include Oakura Oman

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Overdrive marketed by CRV Ambreed with a fertility BV +5.8 and Kailey Oman Kracka-ET marketed by LIC with a fertility BV +6.2. The live export of Holstein Friesians to Asia is still buoyant. LIC and Fonterra are contract mating for heifer calves, using sexed semen, which they buy for $500 at four-days-old for export. Courtman cautions that it is still important to keep the best genetics in New Zealand and farmers should take careful note of what animals they are sending overseas for a quick buck. “In the long term, it could be to the detriment of the national dairy herd if the best purebred animals are sent to China and substandard genetics remain in New Zealand.” Other sources of income from Holstein Friesians are the sale of bull calves that often make it into the national beef herd, and heifer calves crossed with beef. Bobby calves and cull cows also fetch more than smaller breeds or cross-bred animals.

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Doug Courtman on his Waikato farm.

DAIRY NEWS SEPTEMBER 23, 2014

46 //  MILK QUALITY

Machine can clean cleaner MACHINE CLEANING systems maintain milk quality by removing milk residues from the plant and destroying resident bacteria, says DairyNZ. They affect milking efficiency as they vary in their labour requirements and ease of use, it says. Automating the cleaning process offers the advantage of consistency, eliminates human error and prevents safety and health issues associated with handling strong chemicals and hot water. Automation requires the operator to periodically check that the plant is cleaning properly. The benefits of selecting the right cleaning system include increased milking efficiency; installing a well designed system will ensure efficient operation. Costs are also reduced; installing the right system will keep operating costs to a minimum. A cleaning system should have the following features: ■■ Adequately sized and configured wash line. ■■ Minimum flow rate of 3L/min per cluster. ■■ Flow rate through the first jetter should not greatly exceed the last.

A flushing pulsator/air injector may be installed at the end of the milk line to ensure it is cleaned effectively. If the milk line is a loop line then a tap is installed near one of the milk line entries to the receiver with a flushing pulsator/air injector installed before the tap at the top of the milk line. During washing the tap is closed and the flushing pulsator/air injector turned on. Cause minimal liner stretch and distortion. A high flow, rapid dump hot water service to save time filling drums. Ensure liners and jetters are compatible. An easy-to-operate method of cleaning the pit and milking platform is essential. Some larger dairies are installing automatic washing systems on their milking platforms. This is especially useful if the dairy is used for long periods of time. At the completion of milking, the clusters are connected to ‘jetters’ that are in turn connected to a wash line. When the milking plant is turned on the vacuum created by the plant draws water from the wash tub through the wash line. During hot washing the water should

be circulated through the plant for 5-7 minutes, or until it reaches the minimum dump temperature (about 55°C), and this is done by connecting a recycle line from the delivery line to the wash tub. To ensure effective cleaning a minimum water flow of 3 L/min is required through each cluster. Also, to clean the milk line effectively a flushing pulsator/air injector is normally needed. The flushing pulsator injects air and water into the milk line every 30-45 secs.

This injection of water and air creates a turbulent flow of wash water through the milk line which helps to effectively clean the line. www.dairynz.co.nz

A well designed cleaning system will get rid of milk residue and bacteria from the plant.

KEEP IT HUMMING ■■

■■

Check that your machine cleaning routine suits the system. Check the milk dockets and if any bacterial alerts/grades show on the docket then complete a full plant/vat inspection.

■■

Perform a monthly check on your machine cleaning system to make sure it is working correctly.

■■

Use any spare time while the

wash is going through to: ■■

Check that all of the clusters have water going through them.

■■

Check the wash line injector or flushing pulsator is working (you should be able to see turbulence in the receiving can).

■■

Time the recycle time of the alkaline washes on the plant and vat and ensure the washes are being recycled for at least 5 mins.

■■

Check initial hot water wash temps are 80-85oC in the tub and when recycling the wash solution ensure it is dumped before it reaches 55oC.

■■

Check that the chiller in the milk silo is on and working.

■■

Hose the dairy and yard areas.

■■

Update animal health records and transfer any information from whiteboards etc.

■■

Plan the effluent irrigator runs and update records.

DAIRY NEWS SEPTEMBER 23, 2014

MILK QUALITY  // 47

New way to deal with contamination in water WAIKATO COMPANY

Longveld has launched filtration “guaranteed” to remove iron from water so that it meets quality requirements. Longveld sales manager Les Roa says the Iron Out technology, new to New Zealand, “will continuously process water 24/365 without expensive chemical dosing or constant maintenance. All processes are controlled and driven by the filter system itself,” says Roa. Iron Out filtration units have flow rates of 12,000 to 200,000L/day. The technology uses a floating polymer filter media said to be better than sand or chemical filters. It requires little maintenance, no scalping and the filter media lasts 15 years with an occasional top-up. Features include high reliability; no chemicals; continuous removal of iron, dissolved gases and suspended solids;

adapts to changing iron loadings; automatically

back washes; and no shelter required.

Automatic backwashing is triggered

by an increase in resistance through the float-

Longveld’s Iron Out removes iron from water.

ing polymer filter media as the iron and other contaminants are being removed. So the system self-adjusts to changing iron loads in the feed water to give stable, repetitive results.

heating is a natural follow-on. It cites the example of Waitoa farmer Carl Steiner who has installed Iron Out and gas hot water, the latter supplied by the company.

The technology uses a floating polymer filter media said to be better than sand or chemical filters. Iron Out is designed for the non-chemical removal of high levels of dissolved iron (up to 50 mg/l or 50 ppm), dissolved gases and suspended particles. The company also says that once iron contamination is addressed, gas water

Faster Milk Cooling At A Lower Power Cost

✓

IN WITH THE NEW OUT WITH THE OLD

HOW? Replacement of the traditional (and old technology) Thermostatic Expansion Valves (TEV’s) with Carel Electronic Expansion Valves (EEV’s) provides outstanding superheat control of your refrigeration plant. This in turn maximises the cooling in the milk vat. By also installing Carel FCP Condenser Fan Speed Controls you can further maximise the plant potential.

✓ Time to cool milk significantly reduced ✓ Improve milk quality due to quicker cool down ✓ Reduce power costs ✓ Suitable for existing or new installations ✓ Pay-back in first year depending on vat design and refrigeration plant condition

Ask your Refrigeration Technician or contact Eurotec for more information. Phone us on 0800 111 990

Head Office: Auckland: Tel. 09-579 1990 Wellington: Tel. 04-499 3591 | Christchurch: 03-366 0017 Email: sales@eurotec.co.nz | Web: www.eurotec.co.nz

“We quickly saw the economics of it,” Steiner is quoted as saying. “Once we had processed all the information and analysed the nuts and bolts of it all, it was a no brainer.” Tel. 0800 566 483 s.wilkinson@longveld. com

DAIRY NEWS SEPTEMBER 23, 2014

48 //  MILK QUALITY

Managing the trade-off between milking capital and labour THE MILKING routine is the way in which milkers do the tasks required in the milking process. The aim is to have a constant flow of cows into and out of the dairy, to have clusters attached to cows as soon as they are in the milking position, and to have clusters removed as soon as possible after cows are milked out.

With larger herds and limitations on capital, time spent in the dairy is getting longer, harder on people and harder on stock if they have to wait around. An efficient milking routine is important. Its benefits include: Increase milking efficiency. Use work methods which are efficient and

which will speed up the milking process. Decrease stress on people and animals. Reducing the time spent milking will decrease milker fatigue and the time stock wait to be milked. The tasks a milker must complete for each cow at milking (from entering to exiting the dairy) make up the work routine time.

info@farmmedix.com www.farmmedix.com

CHECK-UPTM Mastitis Diagnostic Tool

Measured in seconds per cow these tasks determine how many cows a person can milk in an hour. Reducing the work routine time can lead to gains in efficiency. The difference between milking in a rotary dairy vs a herringbone is a good example of how reducing the work routine can lead to increased efficiency. In a rotary dairy the milker does not have to spend time rowing-up cows or moving up and down the shed to cup them, thus decreasing the work routine time. In large herds reducing the work routine time can lead to significant reductions in milking time due to the large number of cows being milked. For example, taking 3 seconds off the work routine time in a 1000 cow herd saves 50 mins per milking. Few gains in efficiency will result from upsizing to a larger dairy with more milking units unless

it results in a reduction in the work routine time. The installation of larger units can often cause inefficiencies to appear in the work routine such as: increasing the time required to row-up or requiring an additional milker who is not fully utilised. They can also result in detrimental animal outcomes, such as over-milking. Gains in efficiency may be obtained by examining the milkMilking time is an opportunity for identifying any cows ing routine for with health problems. Be aware of any changes in udder shape or cows which are agitated or displaying abnortasks that can be mal behaviour. reduced or elimiKeep the tools of the trade handy e.g. handheld hosnated. Substies, teat spray, and spray-on raddle to cope quickly with a tuting labour problem that otherwise holds up the whole milking. with automaConsider the impact of activities not core to the milktion, such as ing process, and try to streamline them. Think about ACR or an how : automatic ■■ To manage multiple herds so that getting them in is teat sprayer, an efficient process. may also ■■ Managing milk for calves can be streamlined. increase effi■■ To organise effluent spreaders and irrigators so that ciency, although moving them will not have to occur during milking. the trade-off ■■ To organise colostrum cows, cows with mastitis, lame between capital or other sick cows into separate mobs so that they input and labour can be managed efficiently. costs must be manwww.dairynz.co.nz aged.— DairyNZ

TIME TO WATCH AND ACT

ACTIONS TO TAKE

Increase Production, Reduce Animal Health Cost, Get off Water Exclusion

FARM-CHLORTM Farm Water Chlorination Systems

■■

Farm Water Testing and Solutions

Telephone Leon 021 440 575 Natasha 021 440 444

The backing gate should be used effectively, so that milkers are not required to go into the yard to bring cows into the dairy; little and often is best. If milkers are regularly entering the yard, review use of the backing gate and check to see there are no issues in the milking area which may be causing

dairy farm workers have worked on other farms and can bring skills and fresh ideas to your business.

cows discomfort. ■■

Don’t let slow-milking cows slow down the milking routine. Have a plan for managing these cows.

■■

Train your staff properly. It is essential to maximise the effectiveness of your workforce.

■■

Talk to your workers. Many

■■

Take time to calculate the work routine time in your dairy and consider options for reducing it. For large herds a small time-saving per cow can be a large timesaving over the whole herd.

“Help keep our milk clean this season! Beat the threat of thermodurics with Silclear Fittings and Tubing. It’s guaranteed not to perish – you won’t be disappointed.” Reasons to choose Silclear... HYGIENIC Silclear does not crack, erode or perish. or become porous, and does not support bacterial growth. Silclear is a totally different material to conventional rubber. It is not degraded by light, air, dairy cleaning chemicals, or milk-stone remover. Silclear meets all EC and international hygiene standards. The smooth internal and external surfaces are easy to clean and sterilise, helping to reduce your Thermodurics.

QUALITY SILICONE FOR LONG LIFE Silclear blend and process specially formulated high grade medical silicones optimised for maximum strength, tear resistance and optical clarity. Different formulations are used for different Silclear products, which means that each product has the best possible material properties for the job. Careful control of all manufacturing parameters, and good production practices ensure that all Silclear products are of the highest quality. The visual clarity enables monitoring of milk and vacuum lines for cleanliness and milking equipment maintenance.

Genuine product ex UK

Silclear tubing after 54 months use FLEXIBLE AND STRONG Silclear is flexible, easy to install and does not become stiff or brittle, even below freezing to minus -70˚C! it is not ORDER deteriorated by UV light, ozone or temperatures up to NOW FOR NEW 170˚C. As Silclear tubing is lighter than conventional rubber SEASON tube, pull on the cluster is lessened, reducing slippage, and improveming teat contact. The proven durability means that Silclear will give you a host of benefits at a lower overall cost. Rubber tubing after 12 months use

Call Free: 0800 92 92 98

DAIRY NEWS SEPTEMBER 23, 2014

MACHINERY & PRODUCTS  // 49

Concept baler never stops or slows A NEW-CONCEPT

baler that does not need to stop or slow down in any type of crop is being tested by Lely. A commercial product is some years away. The Lely Welger CB Concept ties a bale while simultaneously starting the next one – “a true continuous baling concept, a true yellow revolution,” the company says. Continuous motion

makes the operation more efficient and comfortable. More high quality bales can be made as no time is lost waiting for tying and releasing. Maintaining speed is better for driver comfort, cuts fuel consumption and minimises wear and tear as frequent braking is no longer required. When the desired bale size is achieved, a mechanism moves the bale within the belt to the

ROUND BALING THE WAY TO GO

extended back of the baler, making room for a new bale to start immediately in the front. After the first bale is tied by the net wrap system, the tailgate opens, dropping the bale on the go and the baler resumes its compact position ready again to finish the bale now being made in the front. During this continuous process, a belt buffering and tensioning system maintains consistent

Lely Welger CB Concept ties a bale while starting the next one.

tension on the belt, resulting in high density bales. Lely says its continuous innovation makes life easier for farmers by bringing “great advantages in quality, comfort and capacity”. The Lely Welger CB Concept is the company’s ninth ‘yellow revolution’ in nine years. For a picture visit www. continuousbaling.com Tel. 07 850 4050

co mp E t i t i o n

ROUND BALING is the development focus, “making farmers and contractors happy” with high capacity, high comfort and high quality, the company says. Round balers in silage are less sensitive to crop conditions. Extensive field research is said to have shown that in wet conditions round bales reach the correct pH values sooner than square bales. Round bales also show more consistent density than to square bales and they need less wrapping because of their more ‘efficient’ shape. The surface contact area is much smaller on round bales than square, allowing less oxygen intrusion.

Win a STiHL MS 251 CHainSaW & SafeTy paCkage We have a STIHL MS 251 CBEQ Chainsaw plus a safety package, total value of $1337, to give away in celebration of the Canterbury A&P Show, to be held Wednesday 12 to Friday 14 November 2014. Simply answer the question below, and we’ll put you in the draw! Where will the 2014 Canterbury A&P Show be held?

Enter at www.ruralnews.co.nz/stihl-competition

WWW.SUZUKI.CO.NZ As if ruggedness, reliability and the backing of Suzuki’s extensive dealer network wasn’t enough – now you can throw a $500 cash back onto the list of why you should buy a brand new Suzuki Mudbug or Trojan this August or September. Plus – we’ve got a special shipment of Trojans in BLACK. But you won’t have long to grab those so get in quick.

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Offer valid until 30 September 2014 or while stocks last. Not provided in conjunction with any other promotional activity. Price shown excludes GST, Cash back amount is inclusive of GST. Only at participating dealers. Cash back paid by dealer at the time of sale.

DAIRY NEWS SEPTEMBER 23, 2014

50 //  MACHINERY & PRODUCTS

App-operated dairy autodrafter has own wi-fi SIMPLICITY AND

speed for on-the-spot decisionmaking is the key to the app-operated MilkHub dairy automation autodrafter module, says Tru-Test. “Entry-level pricing and simple EID drafting

functionality merge with smartphone technology all packaged with first-rate draft gate hardware.” A core function of the Autodrafter is that it can set drafts using any Android or Apple smartphone or tablet, making

the gate “particularly attractive for farmers wanting to set up drafts while walking the cows into the shed, during milking or anywhere in the dairy shed area”. The smartphone app functions via wi-fi built into the

The MilkHub Autodrafter can set drafts using Android or Apple Smartphones.

drafter so neither internet nor a PC set-up is needed at the shed. Tru-Test product manager Josh Baker says on farms without reliable internet coverage or a PC in the shed “smartphones and mobile devices are coming to the fore… for all sorts of activities. And it makes sense to utilise hardware the farmer already has and uses on his farm every day”. The Autodrafter’s built-in 3G modem gives farmers the option to set, record and review drafts remotely via MilkHub’s cloud-based MiHub online herd management tool. All farm and cow data, reports and management tools can be accessible through

Phillip Taylor – Kiwitahi – 4953m 3

Pondco

Effluent Ponds

IN SHED FEED SYSTEMS FIRST SYSTEMS INSTALLED IN 1967

0800-901-109

Check out our websites www.ruralnews.co.nz www.dairynews.co.nz

www.pondco.co.nz

Winners of the 2013 IAGI Installation Small Project Award

DISC MILL – LATEST BREAKTHROUGH IN MILLING

Industries Ltd

MiHub. Tru-Test’s MilkHub dairy automation modules include electronic identification herd tracking, walk-over weighing, feed control, heat detection, in-bail identification and in-line milk sensors in conjunction with the MiHub online herd management. Watch the MilkHub Autodrafter launch video on www.youtube.com/ watch?v=N41R2tBm42Q.

EFFLUENT SEPARATOR – FIRST INSTALLED IN 2002

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DAIRY NEWS SEPTEMBER 23, 2014

MACHINERY & PRODUCTS  // 51

Italian feed mixer wagons new to NZ AGTEK TRACTORS & Equipment will distribute Italian-made Zago mixer wagons in New Zealand. The maker’s marketing managing, Alberto Zago, visiting NZ recently, said the time is right to launch the product in New Zealand. “We are committed to this part of the world, our product is first class and we see great potential for growth here. We are a specialist manufacturer… building nothing but mixer wagons.” Zago was formed by Alberto’s father, Lino Zago, almost 40 years ago; he earlier was co-founder and designer engineer of another mixer wagon company. Lino Zago still heads the family-run company with three sons and a daughter; the firm has 60 employees. Zago makes various feed mixer models – vertical and horizontal, animal feed and composting/recycling. The Zago King horizontal mixer has a patented ‘free flow mix, four auger system’. The company works with the University of Bologna where feed mixer research began in 2007 aimed at improving Zago’s feed mixers and “giving new breeding solutions with a scientific basis”.

Zago mixer wagons are being launched in New Zealand.

KILLER DEALS

POWER FARMING

FLEXI-FINANCE

ROPS TRACTOR SPECIALS S KIOTI RX7620 - 76hp • • • • • •

Tel. 07 573 8132 www.agtek.co.nz

• RATES FROM 1.99% * • TERMS UP TO 5 YEARS YOU CALL THE SHOTS

76hp Common rail turbo Daedong engine 24 x 24 Power Shuttle transmission Creep Box Power steering 4WD with diff lock 4 year powertrain warranty†

TRACTOR AND LOADER

46,990*

The EzyGrip bike racks can be fitted to a wide variety of vehicles.

$

+G GST T

**

Racks for most bike preferences TRACTOR AND LOADER

CYCLE RACKS for cars are as varied as their cargoes,

www.ezigrip.co.nz

53,990*

$

+ GS GST G

**

KIOTI PX9020 - 90hp • • • • • •

90hp Perkins Diesel engine 16 x 16 fwd/reverse shuttle transmission Creep Box Power steering 4WD with diff lock 4 year powertrain warranty†

CALL YOUR LOCAL POWER FARMING DEALER OR VISIT kiotideals.co.nz POW0400

says Best Bars Ltd, which markets the EziGrip and Advantage bike rack ranges. “The days of a one-size-fits-all bike rack are long gone,” says John Frear, sales and marketing manager. “Just as there are many types of bikes… we have developed a wide range of racks that will match individual requirements and even vehicles.” The EziGrip modular series is well-engineered and has design-led style and features. EziGrip pioneered modular design, which makes fitting and transporting almost any make or model of bike easy, the company says. An array of modular bottom sockets enables them to be adapted to suit virtually all vehicle types with a towbar, and they are come in 2- and 4-bike folding hanger options: no more need for separate racks for different vehicles. An EziGrip option allows easy access to the lifting rear door of a hatch/wagon, SUV or a ute drop-down tailgate without having to remove the bikes and/or rack. Designed for vehicles with a square hitch receiver towbar, the EziGrip Outrigger swings the rack and bike/s away from the vehicle to provide access to the interior when the rack is in use. Meanwhile the Advantage series, a cheaper option, has many features found in the EziGrip Series, including folding arms for easy storage, along with a cradle and upturned ends, offering greater protection than some towbar-mounted racks. Even vehicles without a towbar can accept a rack – one that’s designed to mount on a hatch tailgate or the boot lid of a sedan. These trunk-mounting EziGrip racks can carry three bikes.

* Normal lending criteria applies. Contact your Power Farming dealer for specific rates and terms. ** All loaders come with 4in1 bucket. Loaders pictured may vary from those supplied. † Conditions apply.

DAIRY NEWS SEPTEMBER 23, 2014

52 //  MACHINERY & PRODUCTS

Farmer edition comes with free accessories ADAM FRICKER

TO HELP convince

farmers that the Sportsman Ace makes as much sense on the farm as a quad Polaris have created a Farmer Edition that comes with free accessories worth $2,380. Dairy News has spent some time in the Ace now. It is more stable than a quad due to the lower centre of gravity of the seating configuration – more like a car than a quad with level floor, proper seat, foot pedals and steering wheel. Add the roll cage and seatbelt into the equation and the Ace does seem a sensible option. But can it really do the grunt work? Well, it is mechanically very simi-

lar to the Sportsman quad that farmers might usually consider. It has a 32HP liquid cooled, fuel injected engine, on-demand AWD, low range, independent suspension with 24cm of travel and can tow up to 680kg. The undersides are fully protected with bash plates. The Farmer Edition adds $2,388 worth of free kit to the $11,995 standard price. The only extra you’ll pay is the labour to fit the farm kit, which includes Smith Attachment bull bar and mud flap kits, a Redline 55-litre spray tank, a tailpipe extension (to reduce noise), and from the Polaris accessory shop, fender kit, rearview mirror, sports roof, mesh rear cover, doors, screen

Nevada pond stirrer.

It pays to stir the pond

New Polaris Sportsman Ace Farmer Edition.

and tow hitch. All practical additions that make it good value for money. And yes, it can do the hard yards on farm. The flat floor makes it easy to get in and out of (no swinging the leg over), the seat height is such that you don’t have to lower

yourself in or hoist yourself out, so getting in and out to open gates etc is not a problem. It can tow and it is as tough as any Polaris quad. The roof and low screen add a degree of comfort that you might appreciate on those long, wet days.

Rethinking applied. Introducing the expanded range of Hustler spray equipment. Now equipped with new Hustler features for greater ease, precision and speed.

WHY DO we have to stir effluent ponds?

Midwest Machinery, importers of Nevada stirrers, says there are four main reasons. It maintains maximum storage capacity; this is achieved by mixing all the product thoroughly so that the effluent cannot fall out of suspension and sit on the floor of the pond thus building up over time and using up the pond’s storage capacity. The stirrer also increases service life of the effluent pump; within effluent there are solids that can consist of the likes of sand which is abrasive. When mixed effectively with the liquid it lessens the abrasion on the pump as the ratio of solids to liquid has become more

consistent and even. It also keeps the pond looking tidy; with all the effluent being stirred little and often it doesn’t allow for sludge or crust to build up on the surface. The stirrer allows for an even spread of dairy effluent nutrients when applying to pasture; if the pond is not mixed it gives certain paddocks a high loading of nutrients and others next to nothing. It has been proven that even application while irrigating is a key to greater returns. Nevada sells electric and tractor driven pond stirrers to suit different operations. Tel. 0800 464 393 www.nevadanz.co.nz

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DAIRY NEWS SEPTEMBER 23, 2014

MACHINERY & PRODUCTS  // 53

Correct licences needed for coming season RURAL CONTRACTORS New Zealand

(RCNZ) is urging its members to ensure they have all the correct transport licences for the coming season. RCNZ president Steve Levet says with the new season fast approaching it is timely for rural contractors and their staff to check to see they have the correct licence and a ‘wheels endorsements’ if required. “It is incumbent on rural contractors to ensure both they and their staff have all the correct licences when moving their tractors and machinery around the country,” he says. “There are no excuses for not having the correct licences and/or wheels endorsement. If contractors are not sure they should find out; all the nec-

essary information is under the members section of our website – www.ruralcontractors.org.nz .” Levet says the different types of licences rural contractors may require include: ■■ Tractor up to 18t or in combination (towing a trailer) up to 25t ■■ Under 40km/h, Class 1 (restricted or full) licence or overseas tractor licence ■■ Over 40km/h, Class 1 plus wheels endorsement ■■ Self-propelled agricultural vehicle (eg combine harvester) ■■ Under 40km/h, Class 1 plus wheels endorsement ■■ Over 40km/h, Class 2 plus wheels endorsement. Rural Contractors NZ

Irrigator will pump grass for field days

is offering training workshops run by long-time member Noel Blackwell, the next lot due in October. Contractors interested in attending – or having their staff attend – one of these training courses can contact RCNZ. Meanwhile, Levet is

reminding rural contractors to be courteous to other road users. “Remember you are often pulling big gear and going slower than normal traffic, so keep an eye out for traffic and pull over where safe to allow cars to pass when on the road.”

RCNZ president Steve Levet says staff licences also need checking.

Trusted - Dairy Effluent Equipment

Pond stirring made easy.

A LEESTON, Canterbury irrigator firm will supply,

install and maintain an irrigator on the new South Island Agricultural Field Days (SIAFD) 40ha site near Kirwee. The 2015 SIAFD will run from March 25-27 with plenty of grass for harvest equipment demonstrations, says the irrigator supplier Think Water Leeston. It will install the half-circle centre-pivot irrigator by December 19 and maintain it for 20 years. SIAFD chairman Alastair Robinson says work on the site will get into full swing on November 1 when the property title transfers to the organisation. “We have agreed to give the current leaseholder access to the property so he can take advantage of the spring flush,” Robinson says. “Meanwhile the committee has… removed 1.5ha of vineyard, replaced a gorse hedge along the roadway with deer fencing, and has all but finalised the site plan. Once we assume full ownership the pace of work will speed up several notches.” Robinson says the committee is delighted with the irrigator Think Water Leeston has donated. It will irrigate about 8ha and will showcase its technology, says project engineer Sam Broomhall. Think Water Leeston, family owned, has been in pumping and irrigation equipment in Canterbury for 25 years. The field days deal “fits right in with what we do with irrigation and pumping,” Broomhall says. “It will showcase the latest technology and we’ll be able to upgrade it as time goes on.” He says the many centre-pivot irrigators in Canterbury are the ‘gold standard’ of irrigation. “It’s the most efficient and cost-effective way to irrigate your land. We think we have a few design advantages over other brands in construction and stability. Our machines are solidly built and can handle the wind issues in Canterbury.” He expects strong interest in irrigation at the field days, especially with the coming Central Plains Water Scheme. SIAFD’s Courtenay Road neighbours Don and Tony Redman will supply water for the irrigator, Robinson says. “Unfortunately, given the tight timeframe, this time we will have only irrigated grass for the machinery demonstrations. In future we will have different crops such as fodder beet and maize available for harvest demonstrations.”

rida Free Maein bike mounitth every w r tanker. stirrer o etails.

Get dairy effluent back onto you farm every day - giving back the best nutritional value as quickly as possible.

for d *Phone

For dairy effluent equipment or complete dairy effluent systems to suit your farm requirements, phone 0800 464 393 now to talk with your regional representative.

Electric Pond Stirrers

PTO Pond Stirrers

Pond Booms (Pump Pontoons)

Fertigator (Portable Irrigators)

Slurry Tankers

Trusted for Safety & Reliability.

Phone 0800 464 393

to be connected to your local dealer.

www.nevadanz.co.nz

DAIRY NEWS SEPTEMBER 23, 2014

54 //  MACHINERY & PRODUCTS

‘Clean sheet’ design helped get it right MASSEY FERGUSON

MF 9407S telehandler.

says its new MF 9407S telescopic handler specifically suits farming. Visibility, patented cab design, manoeuvrability

and performance are all a farmer could want in such a machine, says Agco. The company says it talked to many farmers in Europe while drafting

the spec’s – starting with a ‘clean sheet’ design, and presenting new technology and features from the axles upwards. “The design of the

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Fieldmaster 0800 445 554 • fieldmaster.co.nz

MF 9407S offers the best visibility on the market through the curved rear screen. It is also compact, agile and manoeuvrable,” says Massey Ferguson’s general marketing manager Fergal Meehan. “The short, wide chassis provides exceptional stability, while the laterally, sidemounted engine offers great access for service.” New boom design and mounting pivot along with powerful new hydraulics mean the MF 9407S offers lift capacities and heights suit many applications, while the new boom and mounting further improve loading efficiency. An innovative and patented curved side and rear window fitted into the new cab, coupled with the low (1.75m) boom mounting position, offers an unrestricted view to the rear right-hand side. This design means there is no cab pillar to obstruct the view, offering the best vision in the industry. The cab is 900mm wide, plenty of shoulder room for the largest operators. A curved front windscreen – which extends from the front right over the roof – also increases space and leg room. This makes it one of the largest handler workplaces on the market and, at 75db(A), it’s also quiet, Agco says. Air conditioning and pneumatic seat

suspension come standard. Inside the dashboard is located in the right corner, leaving an unobstructed view of the boom carriage and attachment. The simple dashboard layout is easy to read and is mounted just in front of the new joystick, which provides proportional control. A shuttle reverse lever is mounted on the left, within a finger’s reach of the steering wheel. A separate button is used to place the boom into the float position. Access to the Perkins engine and cooling package is easy. Mounted on the right of the machine, the engine is fitted lengthways parallel to the boom, which makes everything easy to reach. The hydrostatic and hydraulic pumps, fitted to the front of the engine, are also easily accessible. The MF 9407S has a 130hp, 1104D-ETA engine, which provides extra power often required for straw merchants and other contractors, particularly for road work and towing trailers. A cooling pack, which folds up for cleaning, is mounted at the front of the engine compartment, above the hydraulic pumps and the fan can be reversed for cleaning. The radiators and oil coolers have ample capacity. @dairy_news facebook.com/dairynews

BOOM BENEFITS THE MF 9400 series benefits from a new boom, with low 1.75m pivot point, engineered to high specifications for heavy farm work. As a tool carrier, it can be customised to fit existing attachments, to help reduce costs. The new 190L/min closed centre, loadsensing (CCLS) hydraulic pump provides best-in-class flowrates for a fast and powerful response to improve loading cycle times. Operation of all boom functions is by a new proportional joystick, which is also equipped with buttons for operating ancillary circuits. A new boom float function for scraping floors and loading off uneven surfaces is engaged at the touch of a button. There is also the option of boom suspension to protect the machine and operator from jarring, particularly in transport www.masseyferguson.com.au

RAV23SEP14-DN

Maximise Animal Performance Ravensdown has a range of products to help you increase spring pasture growth and maximise feed utilisation by preventing internal/external parasites from robbing animal production. Express® gibberellic acid • Express® is a soluble form of gibberellic acid • Gibberellic acid is best applied with nitrogen fertiliser • Research shows that Express® Cow Drenching with Abamectin™ Pour On gibberellic acid + N gives the • Pour-on with nil milk WHP biggest increase in spring • Highly effective against worms pasture production (64%) and lice Calf Drenching with Combo™ Low Dose • Double combination oral drench • Especially effective against Cooperia

FREE PLANT MINERAL ANALYSIS for every $1000 spend

on Animal Health and/or Agrochemical products! For more details, simply scan our QR code or go to www.ravensdown.co.nz!* *Terms and conditions apply

Leading the way in agriculture 0800 100 123 www.ravensdown.co.nz

Purchase Ballance Agri-Nutrients fertiliser this spring to earn $$$ for your local community. We’ll donate $1 for every tonne you buy!* Nominate your cause at www.cashforcommunities.co.nz Over the past four years the farming community has raised more than $320,000 for schools and community organisations around New Zealand with PGG Wrightson Cash for Communities. This year for the first time we’re running Cash for Communities during spring, giving you another opportunity to earn cash for your local community!

Simply purchase Ballance Agri-Nutrients fertiliser on your PGG Wrightson account, between 1 September and 30 November 2014, and you can start earning cash for your local community, school, St John or Rescue Helicopter.* If you signed up to our recent autumn Cash for Communities programme there’s no need to sign up again. We’ve automatically registered you for the spring programme.

*Open to PGG Wrightson account holders only. $1 per tonne of Ballance Agri-Nutrients fertiliser purchased (excluding Lime, Gypsum and Hatuma), between 1 September and 30 November 2014, will be donated to your nominated cause. See full terms and conditions at www.cashforcommunities.co.nz. Minimum donation per cause applies. The 2014 Spring Cash for Communities programme runs in place of a 2015 Autumn Cash for Communities programme.

Freephone 0800 10 22 76 www.pggwrightson.co.nz

Helping grow the country

SIMPLE. profitABLE. sustainable.

mORe MAIZE ™ MORE MILK FARMER SUccESS: MORE MILK™ 1999 SEASON

2013 SEASON

MAIZE GIVES ME MORE MILK

leon smets, waikato DAIRY FARMER

Since purchasing their 63 ha farm in 1999, Leon and Pauline Smets have increased farm production from 50,000 kgMS to114, 000 kgMS (518 kgMS/cow or 1,809 kgMS/ha) while keeping their herd size static at 220 cows.

114

50

THOUSAND

kgMS

THOUSAND kgMS

220 COWS

220 COWS

See my story at www.pioneer.co.nz or on

MORE MAIZE $$$ DECREASE NITROGEN LEACHING

reduce your feed costs

AVAILABLE WHEN YOU NEED IT

The maize plant removes excess nitrogen, decreasing the risk of excess nitrogen leaching.

Home-grown maize silage is a very cost effective feed.

Know that when the unexpected occurs, you have a feed that is not only there when you have to rely on it, but one that can take your production and profit further.

INCREASE HEIFER WEIGHTS

improve POOR PERFORMING PASTURES

REDUCE MILK FEVER

Feed maize silage to maintain steady weight gains and help meet mating and calving weight targets.

Grow maize as part of a pasture renewal programme and feed maize silage to prevent overgrazing and maximise your pasture.

Maize silage crops grown on effluent paddocks will decrease soil potassium and feeding maize silage and magnesium to dry cows will reduce the risk of milk fever.

www.PIONEER.co.nz 0800 PIONEER 0800 746 633

PIONEER® BRAND

MAIZE SILAGE

2,169 hybrid comparisons can’t be wrong SEE THE RESULTS for yourself

SOME REASONS TO CHOOSE PIONEER GIVING YOU THE ADVANTAGE Industry leading maize hybrids Our extensive trialling programme means we have identified, tested and proven the highest performing maize hybrids for New Zealand farms. Superior seed quality Our New Zealand produced Pioneer® brand seed is amongst the highest quality in the world. Grow it with confidence! More choice No two farms are the same and no two farmers have the same requirements from their maize silage crop. With 25 unique, high yielding products, the Pioneer® brand range of maize hybrids offers the right product for every paddock on your farm. Sharing your farming risk Every bag of Pioneer® brand hybrid maize seed you plant is covered by our Seed Replacement Replant Risk Cover. If in the unfortunate situation that your crop needs replanting for whatever reason within two months of planting, we will provide you with replant seed at half price3.

at www.PIONEER.Co.nz

Our people, our experts together with merchants and contractors can help you get the most from your maize silage investment. This policy is for planting within the same season and applies to any brand of hybrid maize. Seed treatment will be as per your original order.

3

the numbers stack up, so do the REASONS TO CHOOSE PIONEER.

1,828 kgDM/ha

Average yield advantage to Pioneer® BRAND hybrids4

$1,142

Average milk profit advantage to Pioneer® BRAND hybrids4

All figures are calculated using statistically significant (P<0.05) data collected from 2,169 side-by-side comparisons of commercially available Pioneer® brand versus competitor hybrids of similar (+ or – 2.5% DM) silage harvest maturity and at least 20 trials. In addition, average milksolids profit advantage assumes a milksolids response rate of 100g milksolids per kg of maize silage drymatter fed and a milksolids price of $6.25. Source: Pioneer® brand products New Zealand Research Programme. See http://www.pioneer.co.nz/maize-silage/national-hybrid-comparisons

4

VISIT OUR WEBSITE www.PIONEER.CO.NZ

TALK TO THE TEAM 0800 PIONEER (746 633)

REQUEST a publication

Whether you are new to maize or already using it, our online resources will help you maximise your investment.

Feel free to talk to your local Pioneer Representative about the benefits of maize without any pressure or obligation.

Our publications are great tools to help integrate maize into your system. Simply go online or call us to receive your free copy.

PIONEER® BRAND

MAIZE SILAGE

www.PIONEER.co.nz 0800 PIONEER 0800 746 633