No more new coal-fired boilers – Fonterra. PAGE 7
TOP COW COCKY Organic champions PAGE 11
JULY 23, 2019 ISSUE 427 // www.dairynews.co.nz
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DAIRY NEWS JULY 23, 2019
NEWS // 3
Emissions target ‘not grounded in science’ PETER BURKE peterb@ruralnews.co.nz
DAIRYNZ HAS voiced strong $8.35m sale. PG.16
TBfree pioneer retires. PG.23
Robotic Bobcat. PG.32
opposition to some aspects of the Zero Carbon Bill. Especially it opposes the proposal to reduce emissions of biogenic methane to within a range of 24% to 47% below 2017 levels by 2050. DairyNZ was last week among thousands of groups and individuals lodging submissions on the Bill. Parliament’s environment select committee will hear the submissions and report in October. Chief executive Dr Tim Mackle says it agrees with much of the Bill, eg five yearly review of targets and the setting up of an independent climate change commission. He says DairyNZ accepts the 10% target for 2030 as a big challenge but doesn’t necessarily support it.
OPINION ����������������������������������������������18-19 AGRIBUSINESS �����������������������������������20 MANAGEMENT ��������������������������������21-22 ANIMAL HEALTH ��������������������������������� 23 CALF REARING ������������������������������� 24-31 MACHINERY & PRODUCTS �������������������������������������� 32-34
but the economic, social and cultural wellbeing of NZ,” Mackle says. DairyNZ has looked long at the science of climate
change of which the Zero Carbon Bill is a part, Mackle says. Related to this are essential fresh water, animal care, looking after people and pursuing a competitive, profitable industry. A single focus is unhelpful. It must all be integrated in a farm systems context. The conflict of various scientific views is being raised regarding the Zero Carbon Bill and other climate change issues. “Scientists don’t always agree,” Mackle says. “As a former scientist myself I can tell you that. They are just like politicians and others. That is the nature of the beast.” He wants to see change in the talk about emissions in volume terms. Instead he wants the narrative to change to the topic of reducing emissions warming, which is the desired outcome.
MAJOR CHANGES TO BIOSECURITY LAWS BIOSECURITY
NEWS ������������������������������������������������������ 3-17
“Regarding the 2050 targets of 24 to 47 %, this number is not grounded in science or economics in the NZ context. This range for methane, combined with reducing nitrous oxide to net zero, goes beyond expert scientific advice for what is necessary for New Zealand agriculture to limit global warming to no more than 1.5°C. “It is very important to get the range right. If we get this wrong it will have significant impacts on not just the Tim Mackle dairy sector,
MINISTER
Damien O’Connor late last week unveiled big changes to New Zealand’s biosecurity system. These include law changes to strengthen animal tracing and details of a Biosecurity Act overhaul. He says biosecurity is fundamental to protecting the environment, economy, cultural and social wellbeing.
O’Connor says the overhaul will strengthen the Biosecurity Act and the National Animal Identification and Tracing Act (NAIT), to meet future needs. “The Biosecurity Act is now 26 years old. We’re operating in a different world than in 1993. Tourism, imports and the rise of online shopping have brought a corresponding increase in biosecurity risk. “The last few years have seen
more big biosecurity responses -Mycoplasma bovis, bonamia, myrtle rust and Queensland fruit fly. “As the climate warms we face a greater threat from exotic insects and pests to our primary industries.” O’Connor says the M. bovis outbreak is the single biggest biosecurity event NZ has faced and it highlighted flaws in the NAIT scheme and the Biosecurity Act.
“We’re putting that right”, he says. The changes to the Act will be staged with the issues that relate to response: GIA’s on farm biosecurity practices and the payment of compensation immediately, resulting in a Bill before parliament in about one year. Other aspects will be seen to one year later. O’Connor says there will be widespread consultation.
DAIRY NEWS JULY 23, 2019
4 // NEWS
Making history in unraveling emissions PETER BURKE peterb@ruralnews.co.nz
IN AN historic move, 11
primary sector groups have agreed to work with the Government to tackle climate change. The groups include DairyNZ, milk processors, Federated Farmers and Beef + Lamb NZ. Fronting a joint media conference at Parliament, Climate Change Minister James Shaw, Agriculture Minister Damien O’Connor and primary sector group representa-
tives explained how they will work together to reduce agricultural emissions. The 11 groups make up nearly half NZ’s total emissions and jointly are the largest contributor to our greenhouse gas emissions. Shaw noted the remarkable shift in the agriculture sector in the last few years, especially the last few months, and he says this has resulted in the parties striking a deal to work together. “I’m happy with the agriculture sector saying it wants to lead on climate
Tim Mackle and Andrew Hoggard in Wellington last week.
change and on reducing emissions. Leading farmers have long been putting
LEVY TO RAISE $47M THE NZ Government’s view is contained in a 144-page report by the Interim Climate Change Committee (ICCC). The ICCC, an independent expert body, was asked to map a pathway to deal with emissions from electricity generation and agriculture. The committee says no policy exists to deal with agriculture emissions, so such a policy is needed to motivate farmers to play a part in reducing emissions. To achieve this the ICCC proposes
levying $47 million a year to spend on developing skills and technologies to help farmers deal with emissions, effective 2025. Farmers would receive a 95% discount on emissions in line with other industries. Somewhat controversially, the ICCC proposes collecting the $47m levy at ‘processor level’, ie dairy factories or meat processors. This resembles the levying of, eg DairyNZ. The levy proposed is 1c/kgMS on dairy, 1 cent/kg on beef and 3 cents/ kg on sheepmeat.
in place incredible innovation... to increase efficiencies on farm.” Shaw said the new agreement will take these farmers’ good practice and roll it out NZwide. To achieve this will require a roll-out of new infrastructure and technology, some of it yet to be invented. O’Connor also noted the significance of farmers and the Government working together. He says consumers know NZ produces the world’s finest food and they demand to know how food is produced and the animal welfare and
climate change aspects of the story. “We now have competitors claiming zero carbon beef and other food so we must step up and match their expectations in the market place. “We have made huge steps in working with farmers and industry leaders to... get a system that will incentivise more efficient production of food. “My concern is to give the right signals to the right people to get the right change in practice and the correct balance in getting profitability and change in on farm practice,” O’Connor said.
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DISAGREEMENT ON LEVY SOLUTION ON THE proposed levy the agriculture sector group parts from the Government. They unveiled their own paper -- He Waka Eka Noa (Our Future in Our Hands) -- which proposes that the industry-good organisations themselves lead the change. While all the groups support change in principle, they argue that a levy at processor level will not incentivise farmers to change. Andrew Hoggard of Federated Farmers says the levy approach could encourage the wrong sort of behaviour. “For example, the levy might incentivise farmers to go out and buy more PKE to produce more milk to pay the levy or tax,” he says. Hoggard says farmers need knowledge about emissions on farm and new technologies to help them. The industry proposal to have the sector’s groups working closely with farmers is the best option for cutting emissions, he says. Hoggard insisted that farmers are not sitting on their hands doing nothing, and do not lack of willingness to change – they simply lack the tools to do it. “Unlike for a fossil fuel-powered vehicle there is no ‘electric sheep’ equivalent for farmers. But there is potential for methane inhibitors or a vaccine, albeit some years away from proof and coming to market,” he says. DairyNZ chief executive Dr Tim Mackle says the dairy industry understands that it operates in a context of all NZ and there is work to do. The whole sector working with the Government would be special and it agrees with the ICCC on the need for change at farm level. “Generally we want to move in the same direction but we disagree with the ICCC on the levy solution which farmers will see as a blunt instrument and a broad based tax,” he says. As an alternative DairyNZ proposes a five year effort to build an enduring farm-level emission reduction framework and work with farmers and the wider rural sector on real options to reduce emissions. “While appropriate pricing mechanisms for incentivising emissions reductions at farm level can have an important role to play in incentivising change, creating an environment that enables and supports farmers and growers to make changes on the ground is equally important to prepare for farm based pricing from 2025,” Mackle says. Interestingly, O’Connor noted during the media conference that he sympathises with farmers’ views, and he said diluting of signals to farmers may not encourage them to change. The Government’s and agricultural sector’s documents are now out for consultation and will be decided on in a few months.
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DAIRY NEWS JULY 23, 2019
NEWS // 5
Ruralco turns 25 NIGEL MALTHUS
STEADY BUT prudent expansion is the key to success at the Ashburton Trading Society (ATS) in MidCanterbury. The farmer co-op owns and runs the Ruralco rural supply store chain, set up in 1963 as a buying group to get members better deals through strength of numbers. Now it has 3000 shareholders, runs stores in Ashburton, Rakaia and Methven and has an online store that delivers NZ-wide. Its Ruralco dis-
count card is accepted by at least 3000 retailers and service providers. The Ruralco branding was launched three years ago. Its popular annual Instore Days have been going 25 years, celebrated recently. These have the suppliers and partners set up trade stalls in the stores for two days of specials. A prize draw this year offered $250,000 of prizes including a Ford Mustang and other vehicles and home appliances. Respect is the mark of Ruralco in the market, says the co-op’s chair, Methven dairy farmer Alister Body.
Hence the many suppliers and partners at the Instore Day with so many prizes. The business broadened its strategy with the Ruralco branding, Body says. “More and more we’re growing into other areas. And although we don’t have retail stores in [faraway] areas we’ve put a fair bit of time and effort into our website and online shop. “So no matter where you are -North Cape to the Bluff -- if you ring up and want a drum of drench we’ll deliver it to you at a competitive price.”
Ruralco chairman Alister Body.
CO-OPS NOT IN QUESTION DESPITE THE sale of Westland Milk having raised a question about the cooperative model, Alister Body says it is a great business structure, although nothing magical. “You’ve still got to observe the standard business rules: profit, liquidity, a balance sheet that suits your business and reinvestment in it for the future. “All those things are no different from any other business. And if you overreach -- you might have too much debt or your profit’s too low -- just because you’re a cooperative won’t save you from that.” He says margins “can be pretty thin” in rural retail. “You’ve got to be sensible about what you’re doing, and we will close the books again with no term debt in our co-operative. “We’re growing in shareholder numbers and our turnover is growing so we want to continue to develop that.” Body says it is obvious that web-
based shopping and e-commerce is growing. “We’re very aware of that. We’re always trying to work out what rural retail might look like in 10 years and how best to serve our members. It’s a matter of putting business structures in place which enable us to make changes as we go. “That’s one of the reasons why we’re not rushing out there and acquiring a whole lot of bricks and mortar.” Body says it would be too easy to “throw stones” at Westland. “I can’t make much comment on it, other than they found themselves... with a lot of debt and so unable to reap the benefits of their strategy and pay a competitive milk price to their farmers. It’s just unfortunate that’s where they got to.” But he points out that a huge portion of New Zealand’s GDP comes from co-ops, many of them among NZ’s top 100 companies,
including the biggest, Fonterra. He says a co-op structure particularly suits Ruralco as a farm supplies business. Body farms the property he grew up on, owned by the family since 1925 and originally a traditional Canterbury arable farm. He and his parents converted it to dairy in 1981, well before the region’s big conversion push. Regarded then as large-scale dairy, the 184ha property with 600 Jerseys is now below average size for the region. Body has chaired ATS for two years and was previously a director of DairyNZ for ten years. He is a director of the Pastoral Genomics research consortium investigating genomic selection in ryegrass and white clover, and chairs the Dairy Environment Leadership Group (the governance group for the Sustainable Dairy Water Accord). Body says that voluntary accord has been highly successful.
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DAIRY NEWS JULY 23, 2019
6 // NEWS
Go with the ‘official scientific advice’ FONTERRA SAYS the 2050
methane target should be based on “official scientific advice”. It also suggests the target should be set at the lower end of the proposed range and regularly reviewed against the science and options available to farmers. The Climate Change Response Amendment Bill proposes that gross emissions of biogenic methane be cut within a range 24% to 47% below 2017 levels by 2050. Fonterra and the Fonterra Shareholders’ Council last week released their submissions to the Bill. The co-op says it intends doing its bit in New Zealand’s transition to a low carbon future and will work with the Government, researchers and the wider agriculture industry to get farmers practical help to meet new targets. Fonterra chief executive Miles Hurrell says Kiwi farmers are already among the world’s most emission efficient producers of milk, but nearly half of NZ’s greenhouse gases come from the wider agriculture sector. “Our actions today will keep NZ at the forefront of sustainable food production. We know this means some of the ways we farm will need to change. “Fonterra farmers are adaptable
Miles Hurrell
and resourceful people. Once set a clear science based target, they will want to get on with the job and the co-op will support them. “It’s not going to be easy. It will require farmers, industry, the Government and researchers to all pitch in and jointly develop innovative yet practical solutions for NZ’s emissions reduction challenges. “The increased investment in R&D signalled by the Government and industry is the key to bringing new innovations to life.” The co-op agrees with DairyNZ that the 2030 methane target, though ambitious, could be reached with new ideas and tools put in farmers’ hands. The 2050 target should be
based on official scientific advice, the co-op says. “Climate change is a challenge for every NZer. Collectively we must examine our use of fossil fuels in transport and manufacturing, and find a way to manage and mitigate animal emissions. “Agriculture depends upon a stable global climate, so there’s no shortage of motivation for us. Fonterra has a strong appetite to do its bit alongside the rest of NZ to reduce climate pollution,” says Hurrell. The co-op also acknowledges the Government for supporting the agriculture sector’s proposal to set up an emissions pricing system by 2025, funded through levy organisations like DairyNZ.
Fonterra Shareholders’ Council chairman Duncan Coull says farmers are naturally apprehensive but are up for the challenge. They “have a proud history of being at the forefront of innovation and won’t shy away from this”. “Business as usual is not compatible with NZ’s commitments under the Paris Agreement and dairy farmers need to contribute their share to the efforts of the wider economy,” Coull says. “This is the beginning of a process. NZ has a scientifically advanced agricultural economy and the world will be watching us. But regulations must be fair and drafted with care not to jeopardise our comparative advantage in global export markets. “I’m a firm believer that science and technology will provide solutions over time. So it is imperative that regulation doesn’t get too far ahead of the scientific solutions.” Coull called for a joint industry effort to look after farmers’ interests. And he cautioned against industry politics getting in the way. “I urge all farmers to engage with the industry... to tackle this issue head on to capture more opportunities as the lowest emitting, most sustainable producers of nutrition in the world.”
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AG SECTOR’S VISION HE WAKA Eke Noa (Our Future in Our Hands) is the agri sector’s blueprint and commitment to dealing with climate change. Uniquely all 11 partners from the livestock, processing, horticulture and arable, Maori, apiculture and irrigation sectors, and Federated Farmers, have signed this document which is unprecedented. Squabbling is often the norm. The 14-page document outlines their collective commitment to working with the Government in ‘good faith’ on the challenging issue of climate. It acknowledges the need for change and that they want to share in the Government’s aspirations to shift to producing higher value products. It says urgent action is needed but points out the obvious -- that few farmers know what practical actions they can take to meet some of the broad objectives set by Government. “If NZ is to make a difference in climate change we need to stand shoulder-to-shoulder under a common set of values and principles,” the document says. The document is both aspirational and pragmatic, because by uniting to face the Government they make it harder for the latter to ignore them. Divide and conquer is no longer an option. Some important milestones are proposed over five years, as signalled in the report. For example: 2021 - the proportion of farmers who understand the actions they can take in respect of greenhouse gases (GHGs) will have increased from 50% to 90% 2022 - farmers will know their farm emission numbers 2025 - a system of farm-level accounting and reporting of agricultural emissions will be in place. All farms will have a farm environment plan in place, and 70% of them will agree they are managing their GHGs in accordance with their farm plan. The report also acknowledges the present work done by many groups including DairyNZ with its Dairy Environment leaders programme, Miraka’s Te Ara Miraka scheme which rewards farmer excellence, and Fonterra’s recognition and reward scheme. It notes the value of competitions such as the dairy industry awards, the Ballance Farm Environment Awards and the Ahuwhenua Awards, all promoting industry role models. It also notes that DairyNZ has reprioritised its research funding into sustainability initiatives and has been spending on GHG mitigation initiatives. It mentions similar initiatives by other members of the group. Overall the document stated the parties’ intentions and the representatives at Parliament talked up the positive points. – Peter Burke
DAIRY NEWS JULY 23, 2019
NEWS // 7
No more new coal boilers
Government welcomes Fonterra move THE GOVERNMENT has welcomed Fonterra’s plan to speed up its move away from coal. “To have this from Fonterra, on top of them and other primary sector organisations [agreeing to] farm-level emissions pricing, shows that business and the Government can work together... to tackle climate change,” said Minister for Climate Change James Shaw. “Fonterra is among the largest users of coal, after the Huntly power station, so not installing coal boilers and converting existing boilers to renewable energy is a great step,” Shaw said. Fonterra is a member of the Climate Leaders Coalition of 100 major companies. It plans to cut emissions in line with the Paris Agreement goal to prevent catastrophic climate change. “Fonterra’s [move]... shows real leadership and acknowledges that industry has a major role to play in helping New Zealand... become a clean, green carbonneutral economy,” Minister of Energy and Resources Megan Woods said. “Process heat is the second-highest source of energy-related greenhouse gas emissions after transport.”
“We know we can’t do it alone. More can be achieved in partnerships and business working together, like the Climate Leaders Coalition and Sustainable Business Council, to find ways to achieve a zero carbon economy.” Fonterra’s plants are
on track to meet its targets to reduce emissions by 30% across all operations by 2030 and achieve net zero by 2050. Fonterra has 32 sites NZ-wide, with about 40% of processing energy from coal. The rest is from natural gas, electricity and wood.
About 40% of Fonterra’s processing energy comes from coal.
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we do”. “As part of this, we want to step up our efforts to help New Zealand transition to a zero carbon economy.” Spurway says getting out of coal is not as easy as flicking a switch but requires a “staged approach”. “We’re determined to go as fast as we can but there are practical challenges to overcome. “For example, NZ’s energy infrastructure in some regions isn’t set up to handle our requirements. “Either there aren’t alternatives to coal available or, if there are, they are not at the scale needed. “There are also cost challenges. Transitioning to cleaner fuels will require more investment.” Spurway says Fonterra needs to balance this with remaining competitive and its “staged approach”.
STEP 2
FONTERRA SAYS it will not install any more coal boilers or increase its capacity to burn coal. The co-op said last week that it will reduce its reliance on coal as a target in its bid for greater sustainability. These targets include reducing emissions by 30% across all plants by 2030, achieving net zero emissions by 2050 and reducing water use by 20% across all sites by 2020. The co-op also wants each of its farmers to have a farm environment plan by 2025 and 100% recyclable, reusable and compostable packaging by 2025. It will also power its Stirling site in Otago with electricity rather than coal. Robert Spurway, chief operating officer for global operations, says sustainability “will be at the heart of everything
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DAIRY NEWS JULY 23, 2019
8 // NEWS
Green light for Westland sale NIGEL MALTHUS
THE OVERSEAS
Investment Office has approved the sale of the Westland Co-operative Dairy Company to the Yili
subsidiary Hongkong Jingang Trade Holding Co. It leaves only a High Court ruling -- pending as Dairy News went to print -- as the final hurdle to the sale, which was approved by nearly
94% of the co-op’s farmer shareholders earlier this month. Yili Group chief executive officer Jianqiu Zhang welcomed the OIO decision. Farmer shareholders
will receive an immediate cash payment of $3.41 per share, and a ten year guaranteed competitive milk payout. “Our goal is to become the most trusted health food provider in the
Westland Milk has been sold to Chinese company Yili.
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world,’’ Zhang said. “We are very hopeful that our offer will be accepted by the High Court so that we can work towards creating a strong and secure future for one of New Zealand’s most trusted brands.’’ Meanwhile, a group of
spondence provoking a response. “If we hadn’t gone to them we wouldn’t even have known that we just rolled over to become an unsecured creditor of Yili.” Under the Overseas Investment Act, the OIO
Farmer shareholders will receive an immediate cash payment of $3.41 per share, and a ten year guaranteed competitive milk payout. former Westland shareholder farmers still owed money by Westland is hoping Yili will now “do the right thing” and pay them promptly. They are among former shareholder farmers who sold out before the sale process but have yet to be paid for their shares under a clause in the co-op’s constitution allowing payment to be delayed for up to five years. They had asked the OIO to block the sale until they were paid, on the grounds that it was not in NZ’s interest for an overseas company to retain the benefit of that debt -- about $11 million. Group spokesman Pete Williams said Yili does not need the money. “It’s negligible for them. “I would have thought they would do the moral and decent thing. Obviously the Westland board aren’t prepared to do that.” Williams said there are now 12 former shareholders in the group and they will try to contact the rest of the creditors making up the $11 million. “The problem is that we don’t know [who they are]. We’ve never been able to see the information from Westland. The only correspondence we’ve had back from Westland is our corre-
could apply a NZ interests test to the sale of farmland but that does not apply to the Westland sale. “As Shane Jones said, the way the Overseas Investment Act is set up at the moment it allows certain things to happen that are not in NZ’s best interests,” said Williams. In its ruling, the OIO noted that Westland owns two milk processing plants, in Hokitika and Rolleston. It also owns small portions of residential land adjacent to those factories, used primarily to buffer noise from the plants. “The residential land is sensitive under the Overseas Investment Act 2005 and requires consent. The processing plants are not located on sensitive land and are not subject to consent. “The applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The applicant has also demonstrated financial commitment to the investment. “The applicant has also satisfied the OIO that the residential land is likely to continue to be used for incidental and non-residential use, being a noise buffer and accommodation for factory workers.”
DAIRY NEWS JULY 23, 2019
NEWS // 9
Bobby calves now better treated PETER BURKE peterb@ruralnews.co.nz
BOBBY CALVES are showing up
at processors in much better condition than before 2016 when the new handling rules took effect. MPI’s director of animal welfare, Dr Chris Rodwell, says the new regulations prompted farmers to a sudden improvement in bobby calf care, pre works. He says farmers have told him they are positive about the new regulations and the clarity these give on animal handling. Before the new rules, videos released by animal rights groups showed bobby calves had been badly treated. With the calving season now starting, Rodwell says farmers should ensure their facilities for handling bobby calves are in order. “Check loading ramps and make sure they are compliant and undam-
Bobby calf holding pen.
aged and don’t have loose nails. “MPI will have veterinarians at processing plants looking at the state of bobby calves coming through. If we detect calves that are unacceptable this triggers a process to issue an infringement notice. Last year we issued 148 notices -- not huge.” Rodwell says MPI will also spot check loading ramps then “follow the tracks”. An MPI staffer will go with a trucker checking facilities on farm
and spreading the message about compliance. “We stress the main thing: calves must be kept warm and dry until aged four days. They need good timely feeding including colostrum and they must be fit for transport. If not they should stay on farm.” A farmer who doubts an animal is fit to transport should err on the side of caution and keep the animal on farm.
MAKE YOUR VIEWS KNOWN – MPI WITH EXPORTS of animal or animal products valued at $28.6 billion (year to June 2018), MPI says New Zealand needs high animal welfare standards to protect our reputation worldwide. MPI and the SPCA mostly enforce the rules under the Act. They jointly investigate about 16,000 complaints each year. NZ Police also has power to enforce the rules. Fines for infringement can be up to $50,000 or up to 12 months in prison for individuals, and fines up to $250,000 for a corporate. The 1999 Act was amended in 2015 to improve the enforceability, clarity and transparency of the animal welfare system. Those amendments have progressed in three lots: ■■ The first, in 2016, covered bobby calves and the export of livestock for slaughter ■■ The second, in 2018, was on the care and conduct of animals ■■ The third and final lot, now being discussed, looks at ‘significant surgical procedures’, i.e. who may do procedures on animals and in what circumstances.
The proposed changes will, if adopted, take effect on May 9, 2020. MPI says the regulatory proposals build on submissions received in 2016, with 26 proposals either new or markedly different from the 2016 starting point. The proposals are in six sections: ■■ Section A - animal husbandry, affecting cattle, sheep, pigs and goats ■■ Section B - equids such as horses and donkeys ■■ Section C - poultry and game fowl ■■ Section D - animals in research, teaching and testing environments ■■ Section E & F - electric prodders, pain relief and ‘competent persons’. Some proposals are on farmers giving animals pain relief or local anaesthesia for, say, disbudding or de-horning as authorised by a vet. Deadline for submissions: July 24, 2019. Feedback can be made via an online survey accessed at www.mpi. govt.nz/animal-consult, or by e-mail to animal.consult@mpi.govt.nz – Mark Daniel
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DAIRY NEWS JULY 23, 2019
NEWS // 11
From left: Colin May, FIL, Jenny and Ray Ridings and ODH executive director Sharon Shannon.
FARMERS GET AWARDS FOR QUALITY MILK
Grant Ridings on Jenerayations Farm, Kerepehi.
Organic co-op set for expansion SUDESH KISSUN sudeshk@ruralnews.co.nz
NEW ZEALAND’S only
organic dairy cooperative is ready for its next phase of product development and growth. Organic Dairy Hub Cooperative NZ (ODH) has appointed a new chief executive and is looking to expand its product range this season. Clay Fulcher, until recently the national sales manager at Fonterra subsidiary NZ Agbiz Ltd, was introduced to ODH farmer shareholders at its annual meeting in Taupo two weeks ago. ODH executive director Sharon Shannon told Dairy News that Fulcher has an extensive background in the dairy industry and is pleased to lead the co-op into the next phase of development and growth. The 100% farmer owned ODH supplies organic milk to local dairy processors including Goodman Fielder, Green Valley Dairies, Lewis Road Creamery and Kawerau Dairies. It also produces a range of organic milk powder from A2 cows for domes-
tic and export markets. Shannon says ODH is “very clear on strategy and where we are looking to take this business, for our shareholders”. “ODH is providing the whole package for shareholders -- a true co-op that prides itself on looking out for each other. “Our farmers all have farm gate numbers but no one is just a number. All shareholders personally know each other. “Directors and senior management are accessible and available to all our shareholders. “We live and breathe our culture and our values, we provide organic practical support and we support our in-conversion farmers through the process of conversion. We provide shareholder buying power for organic products and we form longstanding business relationships that provide stability for our business and our shareholders.” While ODH is currently at full capacity, it has a waiting list of farms wanting to supply the co-op. Shannon says ODH is interested in talking to any farmers already organic or interested
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in changing their farming system to a biological organic system. “For us it’s about building the relationship with them and understanding what they need from us as much as what we need from them.” ODH fully supports farms changing from conventional farming practices to organic farming.
Shannon did not divulge the milk price paid to its farmer suppliers but says ODH is “just not about the milk price”. “It’s about how we can wrap our co-op arms around all our farmers and make them highly efficient on farm and in their business to drive profitability. “ODH has the coun-
try’s most experienced and successful biological organic farmers, from in-conversion farmers to farmers 25 years into organics. “We have some of the most forward thinking farmers and business people in the country who had the passion and vision to create a true co-op out of real collaboration.”
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AT ITS recent annual meeting in Taupo, Organic Dairy Hub (ODH) gave out the inaugural Farm of the Year awards. A special trophy, made from recycled scrap metal, was donated by Adrian Worsley Art. Prizes were donated by FIL. Kerepehi-based Jenerayations Farm, owned by the Ridings family, won the top award, for supplying ODH the finest grade milk all season. Farrand Farms, Northland and Roydon Phillips, Taranaki came second and third. ODH executive director Sharon Shannon says the co-op is proud of the quality of milk supplied by its farmers and its shareholder achievements. “ODH farmers understand the full journey of milk from the time the shed lights go on in the morning to the consumer enjoying the end product.” Farms supplying are located in most regions of the North Island: from Northland to South Wairarapa, and from Taranaki across Waikato to Bay of Plenty. “We have a nice spread of farm which allows us to service all areas of the North Island,” says Shannon.
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DAIRY NEWS JULY 23, 2019
12 // NEWS
GDT price jump surprises economists PAM TIPA pamelat@ruralnews.co.nz
THE 2.7% jump in last
week’s Global Dairy Trade overall price index – with a 3.6% bounce in whole milk powder – was a surprise, economists agree. All eyes will be on China demand and New Zealand spring production in the coming months. The theme of tight milk supply from the main exporting regions is still an underlying factor, says RaboResearch dairy analyst Emma Higgins. Whole milk powder (WMP) average price nudged over the $US3000/t mark. Skim milk powder (SMP) prices also saw a 3.8% rise, lifting the average price to $US2505/t. Higgins told Dairy News these were pleasing – and surprising – results
for this time of year, held up by robust Southeast Asia demand. “We have seen extraordinary volumes shipped from New Zealand to China over recent months,” she says. “NZ exports to China for the last three months have been at record levels.” But it seems clear there is stock building in China, based on RaboResearch modelling. “Based on the prolific Chinese import volumes in 2019 to date, we anticipate some price weakness to eventuate over the coming months as inventory pipelines recalibrate over the short term.” Westpac senior economist Anne Boniface says this was the first lift in WMP prices since March. Smaller improvements occurred in fats prices. “Global growth in milk
Whole milk powder prices rose 3.6%.
supply is still expected to be relatively modest over the second half of this year,” she says. “While much will depend on pasture condi-
tions in NZ, it’s unlikely that last year’s exceptionally strong growth in milk production during spring will be repeated. “And with the national
herd likely to be static, or even contract a little, further growth in the national milk supply will hinge on incremental productivity improvements.
“Buying from the North Asia region (dominated by China) has been strong through the first half of the year. Most recently, the proportion of GDT sales to the North Asia region has been notably higher than usual through June and July. “This suggests that consumer demand for dairy products in China seems to be holding up well, despite growing headwinds for the Chinese economy and trade tensions.” While last week’s GDT was a little stronger than they had pencilled in, Westpac is holding its $6.90/kgMS forecast for the current season. ASB rural economist Nathan Penny says last week’s results were better than the bank’s expectation of no change and better than futures market pricing, which indicated a
circa 1% rise. WMP prices still remain about 7% lower than their 2019 highs, with the six auctions during April, May and June all posting falls. SMP prices led price gains last week and milk fat prices stabilised after recent large falls, with butter and anhydrous milk fat prices increasing 1.7% overnight. “In our view, this result does not change the outlook for global dairy markets,” says Penny. “The result, if anything, is a function of prior price weakness rather than a signal of renewed price strength. With this in mind, we continue to see global dairy markets, as on the whole, tight.” ASB is holding its forecast at $7/kgMS, but so early in the season that it comes with a wide range of error of $1/kgMS each way.
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DAIRY NEWS JULY 23, 2019
14 // NEWS
Helping lift dairying’s environment footprint RODENTS ARE cop-
ping it on an 8ha bush block on a farm owned by BEL Group near Waipukurau, central Hawke’s Bay. This area is known to attract ferrets, stoats, weasels, rats, mice and occasionally possums, which prey on the birds and their eggs. The block, under a Queen Elizabeth II Trust covenant, has about a dozen traps and “an extensive trapping programme,” says Robert Barry (27), the head of environmental work for BEL Group. He uses traps made by NZ Autotraps. The traps reset and re-bait themselves, improving the kill rate. “The great thing about these traps is that they aren’t labour intensive and they kill a range of predator species,” says Barry, a Tikokino Young Farmers member. Barry’s passion for the environment has won him several accolades and landed him the job. He and his wife Alison were finalists in the 2018 Ballance Farm Environment Awards for East Coast,
GOVERNANCE EXPERIENCE ROBERT BARRY was recently elected to the NZ Young Farmers board. “I thought about standing for the board for two years,” he said. “To be elected and have the backing and support of my fellow members is awesome.” Nine people sought two positions in a hotly contested election. Barry saw joining the NZ Young Farmers board as a way to get governance experience. “Not many boards set the criterion of being under 31 years of age, so it was an opportunity I had to seize,” he said. Barry will be on the NZ Young Farmers board for two years.
winning the Predator Free 2050 and DairyNZ Sustainable Farming Award. BEL Group was started by Barry’s mother Andrea and his late father Peter in the 1990s. It now employs 70 fulltime staff. The business milks about 9000 cows on nine dairy farms. It owns or leases eight dairy support blocks. Before his new job, Barry was second-incharge on one of the dairy farms. “This job is a great fit for me,” he says. “I’m passionate about improving dairying’s environ-
mental footprint. I was always suggesting ways to improve our practices.” Quitting the daily milking routine has enabled Barry to start implementing his ideas. The business overhauled its wintering practices this year, aiming to cut nitrate and sediment loss from crop paddocks. “It’s something everyone can do,” he said. “Being smart about where you plant winter crops and how you feed them can lead to a big reduction in sediment runoff. “It can often be as simple as putting up a
Robert Barry monitors his local stream using water testing kits funded by Fonterra.
back fence or using a portable water trough to help reduce soil damage.” Grazing sections of crop growing near waterways or at the bottom of slopes last helps trap suspended contaminants. About 50 employees feed out to cows and young stock over the winter and shift crop fences. Two fulltime fencers work at fencing off small drains.
“Legally we don’t need to fence them off. But they’re areas that get wet and boggy in winter, and reducing the number of cows walking through them can help the water quality.” Most of the farms lie in the Tukipo River catchment which has poor water quality. “The river doesn’t have the benefit of a large volume of fresh water flowing through it,” Barry
said. “It’s fed by springs on surrounding farmland. Keeping livestock out of those springs makes a difference.” Students from the local school are helping to grow native plants and trees for the newly protected areas. BEL Group gave $4000 to help the school extend its shade house which can now produce 1000 riparian plants a year.
Barry chairs the Tukipo Catchment Care Group he founded in February 2018. The farmer-led group aims to improve water quality, biodiversity and their greenhouse gas footprint. “This year through the group I have applied for and received $32,000 from Fonterra to buy water testing kits and to find potential wetland sites,” he said.
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DAIRY NEWS JULY 23, 2019
NEWS // 15
Fonterra overhauls election process The committee says farmers want the election process simplified as much as possible, with independence and transparency of process.
do not exceed vacancies) candidates must still gain at least 50% support to be elected. If one or more candidates in an uncontested election fail to achieve that threshold, a second election will not be held. The board retains its power to fill any such vacancy by appointing a farmer director for the
period up to the end of the next annual meeting. To ensure that only farmers have the power to remove a sitting director standing for re election, board endorsement of incumbent directors seeking re election has been removed. Now, incumbent directors seeking re-election who go through the
assessed candidates process will automatically proceed to the ballot, regardless of the independent selection panel’s assessment of them. The names of the 35 shareholders supporting non assessed candidates will no longer be published. The Shareholders Council retains responsibility to run the director elections as required by the Fonterra constitution. A stand-down period for sitting Shareholders Councillors will prevent them from standing for the board in the same election cycle in which they exit the council.
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value” information about the skills and attributes required by the board, the committee said. Farmers also insisted that only they should be empowered to remove a sitting director standing for re-election. The committee says “to better characterise” the two different ways available to farmers to stand for the board, the independent nomination process and self nomina-
tion process have been renamed, respectively, ‘independently assessed candidates’ and ‘non assessed candidates’. All candidates recommended by the independent selection panel will go directly to the ballot without further review or nomination by the board and its nominations committee, which is to be disestablished. To provide farmers with a choice of candi-
dates, the independent selection panel will now put forward candidates numbering, at most, the vacancies to be filled plus two. No limit is imposed on the number of farmers who may stand as non assessed candidates. The 50% support benchmark for contested elections is removed from such elections. For an uncontested election (when candidate numbers
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FONTERRA HAS overhauled its farmer-director election process. This follows last year’s muddle where only two candidates crossed the 50% vote threshold in the first election, forcing the Shareholders Council to hold a second election to elect a third director. Changes include removing the board’s power to decide which incumbent directors may stand again. Also gone is the 50% threshold candidates must pass to succeed in contested elections. And the directors will now not need to hold a second election. Instead they are empowered to appoint a farmer director to a vacancy, effective until the end of the next annual meeting. The co-op in March set up a director election review committee to review the process and recommend improvements. It is made up of directors and Shareholders Council reps who consulted widely with farmer shareholders and told them of the changes this week. The committee says farmers want the election process simplified as much as possible, with independence and transparency of process. Farmers “strongly
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DAIRY NEWS JULY 23, 2019
16 // NEWS
$8.35m farm sale could strike a match NIGEL MALTHUS
PGG WRIGHTSON
says the recent sale of a Lower Waitaki dairy farm for $8.35 million could “re-ignite” the market for dairy property. Dave Heffernan of PGG Wrightson Real Estate, Oamaru, who marketed the 178ha farm at Hilderthorpe, south of the Waitaki River, said few dairy farms have sold in recent months. “Although recent transactions have been rare, the sale value of about $47,000 per hectare is close to what this farm would have made two years ago.”
While many vendors seek $50,000 a hectare, few are selling at that price, Heffernan said. The farm was listed in January and sold in June to a local buyer. “We also received interest from several other parties, indicating that farms with low cost reliable water, good soils and proven production should achieve values that satisfy realistic vendors,” he said. The farm produced 250,000kgMS from 580 cows in the 2019-20 season. The sale did not include plant and equipment but the buyer has bought the herd (in a sep-
arate transaction) and a contract to supply Oceania. Heffernan said because would-be Oceania suppliers do not need to buy shares or join a supply waiting list, the supply contract was a big incentive for the sale. Oceania, owned since 2013 by the Chinese dairy giant Yili, is awaiting regulatory approval of its proposed purchase of Westland Milk Products. Yili says it has invested $650m in setting up milk powder, infant formula and UHT production lines at the Oceania plant just north of the Waitaki River, and that it is paying suppliers above the industry
Hilderthorpe dairy farm which recently sold for $8.35 million.
average. PGG Wrightson Real Estate North Otago branch manager John Sinnamon said the Hilderthorpe sale was a positive signal to a stalled market. “Several factors, including Mycoplasma bovis and banks adhering to tighter lending criteria, have increased recent levels of buyer caution. However, this sale shows them more attuned to current market expectations, while vendors are
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willing to take innovative steps to achieve the best outcome. “In the current market you have to be more innovative to achieve a sale. For example, vendors
might opt to retain a proportion of equity in a farm for a limited term. “This sale proves that realistic vendors can reach agreement with motivated purchasers,
which is necessary for the rural property market to remain active. It also shows purchasers remain interested.” @dairy_news facebook.com/dairynews
FARMER FINED, BANNED FROM OWNING LARGE HERD A NORTHLAND farmer (62) has been fined $5000 and banned from owning more than 70 cows for two years after being found guilty of animal welfare offences. MPI says animals suffered unnecessarily because the farmer failed to provide for his cattle’s physical, health and daily needs. Kenneth Charles Wood was sentenced recently at the Whangarei District Court. As well as the fine and ban, he was ordered to pay court costs of $130 and veterinary costs of $525. MPI brought a prosecution against Woods because of a complaint about the condition of some of his cattle on his Oruawharo property. He owns a 64ha block of which 36.4ha is effective grazing area.
MPI told Dairy News that animal welfare inspectors visited Wood’s farm and found about 80 cattle of mixed age, sex and breed. The cattle had free range over the entire property where internal fencing and infrastructure were derelict. Pasture cover was uniformly low, estimated at 1000kg/DM/ha or less across the farm, and there was no evidence of supplementary feed being provided. The inspectors saw cows in poor body condition, especially two emaciated Jersey cattle. Wood was found to have failed to ensure sufficient food was available to his cattle as outlined in the Sheep and Beef Code of Welfare and they were underfed for a long time. Wood claimed it had been a wet winter and feed was short. – Pam Tipa
DAIRY NEWS JULY 23, 2019
WORLD // 17
More Euro cows enjoy sun, grass SUDESH KISSUN sudeshk@ruralnews.co.nz
MORE EUROPEAN
dairy farmers are choosing to put their cows outdoors to graze. Dutch co-op FreislandCampina says 248 farmer shareholders opted for outdoor grazing, so increasing the percentage of farms doing this from 81.2% in 2018 to 83% in 2019. “As from 2015, the farms of member dairy farmers meadow grazing their cows has risen annually: 2015, 77.9%; 2016, 78.2%; 2017, 79.4%; and 2018, 81.2%. “The final percentage will be determined in December at the end of the outdoor grazing season,” the co-op says. “This makes the dairy sector visible to the people, and the char-
acteristics of the Dutch landscape -- cows in green meadows -- are preserved.” The cow in the meadow is part of the Dutch landscape. FrieslandCampina encourages farmer shareholders in the Netherlands, Belgium and Germany to put their cows and young cattle outside. The co-op says not all dairy farmers can graze their cows outside. Some lack enough land for grazing, and land may be too far from the farm. FrieslandCampina offers financial incentives to encourage farmers to graze cows outdoors and it acknowledges outdoor grazing requires cows get a lot of attention. Dairy farmers who graze their cows outside at least 120 days per year for a minimum of six hours per
day receive an allowance of $NZ2.50/100kg milk on top of the milk price. If only some of the cows go outside for grazing, this “partial outdoor grazing” will get farmers NZ.77c/100 kg milk on top
European farmers are being paid for keeping their cows outdoors.
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COW COMFORT WHILE A cow in the meadow is always a beautiful sight, FrieslandCampina says a cow in the shed also has a good life. “Our member dairy farmers make sure that the shed offers everything the cows need -- room to move, space, light and air, soft bedding, clean drinking water and feed. “Everything must be focused on proper housing and the cow feeling comfortable.” FrieslandCampina helped farmer shareholders to keep their cows alive six months longer in 2020 than in 2011. In 2011, the average cow lifespan in the Netherlands was five years, eight months and 11 days. At end of 2018 that had dropped on average to five years, six months and 14 days. The co-op says the cows’ eight fewer days was because of phosphates legislation. But “the longevity of the cows is expected to increase from 2019 as the impact of the phosphates legislation is passed”. “We are working together with other parties in the sector to increase the longevity of the cows,” the co-op says.
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Positive Oz THINGS ARE looking up for Australian dairy farmers after a challenging season of sustained dry. Dairy Australia’s June 2019 Situation and Outlook report paints a better picture for an industry reeling from lower national milk production, farm profits and farmer confidence. Despite higher costs for grain, hay and water, Dairy Australia sees a better outlook for the new season which started on July 1. Global commodity markets remain well balanced, with global dairy demand up 3.2% in the past year and growth in key markets Greater China and Southeast Asia.
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DAIRY NEWS JULY 23, 2019
18 // OPINION RUMINATING
EDITORIAL
A united primary sector – at last
MILKING IT... A fair shake?
Full credit
MEDIA BIAS against farming isn’t new in this country, but the level of ignorance among journalists is off the charts these days. The recent release of the ICCC’s recommendations on how to tackle climate change -- including taxing agriculture -brought all that bias and ignorance bubbling to the surface. Stuff, which last year abandoned rural publishing, showed its true colours with the pejorative intro, “Agriculture, the most polluting sector of the economy…”. TV One basically turned its report into an attack ad for Greenpeace, going off on a tangent that led to the “evils” of PKE, complete with images of destroyed rainforest and sad orangutans. The link with the ICCC report was tenuous at best. And our old mate Jack Tame couldn’t suppress his disappointment, lecturing Minister James Shaw about going too easy on farmers.
CREDIT WHERE due though, NZ Herald at least reported that agricultural leadership had pitched in to do its bit. Even Fish & Game had the good grace to admit this consensus between the Government and industry was good. And RNZ acknowledged that there is no technology to measure emissions at farm level, quoting Dr Harry Clark, “Only 2% of farmers know what their greenhouse gas emissions are but there is no single technology yet to measure them.” Newshub risked bringing the whole of Grey Lynn and inner-city Wellington down on its head by publishing Peter Williams’ comment that anyone daring to question the legitimacy of the ‘climate emergency’ narrative risks being labeled as ‘in denial’ and much worse.
Factory closures?
Fighting fake milk
AUSTRALIA HASN’T been a happy hunting ground for Fonterra in recent years thanks to increasing competition among processors and supermarkets pushing their weight around. Add that to a drop in milk production due to extreme weather this year and the co-op is facing a dilemma of overcapacity. Processing 20% of Australia’s total milk, the co-op suddenly finds itself with more stainless steel than it needs. Rumours are rife that Fonterra will close one or more of its processing plants there. Fonterra will announce its annual result on September 12. Watch this space.
BELEAGUERED AUSTRALIAN farmers are facing a fight on a new front. They have begun campaigning to ban plant based product makers from promoting ‘milk’ on their labels and in marketing. Australian Dairy Farmers (ADF) claims the term gives a misleading impression that plant based products are nutritionally equivalent to dairy milk. Australian dairy farmers have struggled with low production and a poor milk price for several years. A 2017 survey by Dairy Australia showed 54% of respondents bought plant based milk alternatives because they perceived them to be healthier than cow milk.
THE UNITED and unprecedented stand taken last week at Parliament was historic. It brought together farmers, growers and other related sectors seeking to solve the vexing problem of agricultural emissions. Eleven different groups, including Maori, took a united position on climate change, even daring to challenge one recommendation by the Independent Climate Change Commission (ICCC) set up to advise the Government. Faced with a hijacking of the climate change issue by greenies and others, the agri sector got its act together in style. They produced the document He Waka Eke Noa – Our Future in Our Hands, which fairly summarised their intent. They stated their collective commitment to working with the Government in good faith to deal with climate change. They acknowledged the urgent need for change and pointed out that farmers, horticulturalists, processors and others have not been idle but have spent huge sums of money and much time on searching for solutions to the many challenges. Given that the sector intends to be part of the solution, we hope the Government will sensibly listen to its suggestions. They have quite rightly given a thumbs-down to the ICCC rather bluntly recommending an arbitrary levy on farmers at processor level – meat and dairy companies and the like. This would be too disconnected from farmers to effect the behaviour changes needed on farm to deal with emissions, they said. The groups instead favour developing closer relationships with farmers so as to bring them onboard as part of the solution. Climate change is complicated, and for farmers to buy into the solution they need coaching and helping on a personal level. The Government may be wise to accept this offer if they are serious about working with farmers.
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
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:
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DAIRY NEWS JULY 23, 2019
OPINION // 19
How do riparian strips fare long term? Riparian strips are correctly
Are our riparian systems overloaded and therefore useless?
promoted as useful tools for reducing environmental pollution, especially for their ability to filter out faecal bacteria and sediment before these enter streams. But there is much more to it, Bert Quin comments. MANY FREQUENTLY made claims for the ability of
riparian strips to improve water quality are based on very short-term studies only. This is particularly true of phosphorus (P) and nitrogen (N) removal. Unfortunately, we are now in the days of emphasis on short-term, quick-results trials that lend themselves to publication in many different journals to ensure more cash from equally short-sighted funding organisations and companies with vested interests. In-depth studies of the longer-term change in effectiveness of riparian strips, development of optimum management plans for them and how to pay for these, are few and far between. Instead of long-term trials of actual riparian strips, where cause and effect can be clearly assessed, we just monitor river and lake water quality. Reductions in levels are presented by fertiliser industry funded scientists as ‘proof’ that the ‘mitigations’ the authors and funders of the research are promoting are the cause of the reductions. And they are implied to be a permanent fix and supposedly safe for continuing application of high rates of the fertiliser N and soluble P. Nothing could be further from the truth. Entry of the ‘big four’ (ie calcium, magnesium, phosphorous and boron) into riparian strips certainly results in less loss direct into the waterways they border. But we have to keep in mind that the quantities of the ‘big four’ being released from intensively grazed pastures are massively greater – typically by one to two orders of magnitude -- than those that enter water from native vegetation. So the two most important questions should be, what management needs to be done to ensure riparian strips do not become overloaded and therefore useless, and, who should pay for this management? A promising sign of increasing understanding is a recent article in Dairy News (June 25), sourced from the Waikato Regional Council publication ‘The condition of rural water and soil in Waikato region’. The article repeats the WRC’s advice that riparian strips and drains must be ‘very well maintained’ to be environmentally effective, but neither get into the detail and long-term costs. But the magazine article is poorly headed ‘Plants, fencing keeps nasties out of water’. A far more relevant title would have been ‘Riparian strips and drains must be well maintained to be effective’. The article states, “In ideal conditions, fenced grass riparian strips can reduce sediment entry to streams by 80%, dissolved P by at least 50% and nitrate-N by at least 60%”. It doesn’t define ‘ideal conditions’ or make any comment on how quickly the P and N loss reductions can diminish. Let’s look at the effect of different losses, short and long-term, and consider the two ‘elephants in the room’ -- the continuing overuse of fertiliser N and soluble P fertilisers. To be continued in Dairy News, August 6. • Bert Quin is the managing director of Quin Environmentals.
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DAIRY NEWS JULY 23, 2019
20 // AGRIBUSINESS
More Miraka farmers win for excellence MIRAKA’S INSISTENCE on
sustainable farming practices has shown results in more farms winning honours in the recent Te Ara Miraka farming excellence awards. “Since establishing the awards four years ago we’ve started to see significant change in on farm practices,” says Grant Jackson, general manager milk supply. “We’re not just meeting the regulations, that’s mandatory for us. Rather we’re going over and above, to achieve excellence in animal welfare, sustainable land management, looking after employees and premium quality milk.” Seventeen of 104 participating farms scored 90% or more and Te Raparahi Lands Trust took won the top prize with 100%. Only 10 farms reached 90% when the awards began four years ago. Mandatory and optional excellence criteria apply to farms. Achieving the optionals will gain a farmer points
and a payout higher than a market competitive base milk price. “When Miraka first brought out the standards I thought they looked pretty challenging,” says top award winner Tracey Simpson of Te Raparahi Lands Trust. “I was worried it was too much pressure for farmers and that we would never be able to meet all of them. But there’s a real change in the farming community, and we know strong environmental practices are good for the land and they make financial sense.” The team at Te Raparahi Lands Trust have worked on a holistic farming approach for 10 years, says Phillip Samuels, Te Raparahi Lands Trust chairpman. “For us it’s having shared goals and pushing ourselves to do more. Last year we used our incentive payment to purchase a new Halo monitoring system for our farms, which has been a great investment. “Miraka’s approach is helping create a paradigm
Ecolab territory manager Jeremy Raines ‘cupping up’ at the Spedding’s dairy farm.
Miraka Excellence Awards 1 Certificate Holders - representatives from Te Raparahi Trust including Phillip Samuels, Murray and Tracey Simpson, Craig Walker & Dave Bajoyo.
shift within New Zealand farming, to encourage farmers to start making positive changes.” Each year Miraka is seeing more farmers grow and accelerate change within the programme, says Murray Hemi, Miraka’s Kaitiaki and GM environmental leader. “At Miraka we value kaitiakitanga, we support decisions with a long term view, we build resilience into our business and live our values while creating top quality dairy products. “Our farmers are starting to see the value
in our approach. It’s exceptional to have so
many of our farms hitting high targets.”
Relief at weekend on the farm NIGEL MALTHUS
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Murray Simpson on his Te Raparahi Trust farm in Waotu, South Waikato.
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industry, but Southland farmers David and Angela Spedding recently enjoyed a weekend away as winners of Ecolab’s inaugural ‘What a Relief’ programme. Ecolab aimed this at enabling two winning dairy farmers to get off their farms for a weekend of mental and physical relief. Four staff from Ecolab’s Invercargill office – with 67 years combined dairy farming experience – took over the Speddings’ owner operated farm near Winton while they enjoyed their break. Ecolab ANZ’s Sydney-based senior vice president and general manager, Jan Pacas, expressed surprise at the hundreds of entries, just from radio ads. Entry was not restricted to Ecolab customers. “As breeders and milkers we are on site 24/7, tending to our animals and ensuring high quality milk production all year round,” said Angela Spedding. “I was so pleased for my husband and I to win ‘What a Relief’, which enabled us to take a break knowing our facility was in safe hands. Without Ecolab it would have been many more months before either of us would have had a chance to relax.” The couple – just the two of them – enjoyed a weekend at a plush hotel in Queenstown in late April, their first break from milking since the season began. She said Ecolab’s care of the farm was “absolutely wonderful”. Pacas called the programme a great way of engaging with the community. “Given that dairy is an important business for us we’ve always been supportive. To succeed in business you’ve also got to support local communities, which Ecolab has done over many years.” Pacas said Ecolab has sponsored the NZ dairy community for many years by supporting rural schools, community and sports clubs and industry awards. ‘What a Relief’ may become an annual event, he said. “It’s a beautiful way of giving back.” The US-headquartered multinational operates in hygiene, sanitation and water treatment in many sectors including dairy where it markets teat sprays and other products for dairy shed sanitation. In NZ it has about 300 employees and $100 million revenue. Its product innovations during the last year included Hibitane 2 hard water teat spray for areas with hard water.
DAIRY NEWS JULY 23, 2019
MANAGEMENT // 21
Managing the risk of soil erosion ble erosion stand out as aspects of soil sustainability and the economics of farming. Erosion is the wearing down of a land surface by the action of water, wind or other geological processes. The resultant displaced material is known as sediment. Sedimentation is the depositing of this eroded material. The main factors influencing soil erosion are climate, soil characteristics, topography, ground cover and evapotranspiration. Climate affects the likelihood of erosion directly and indirectly. The direct relationship arises from the action of rain – a driving force of erosion – where raindrops dislodge soil particles and carry them away. Soil characteristics are important in determining soil erodibility. Good soil structure increases water permeability and water holding capacity. Soil permeability refers to the ability of the soil to allow air and water to move through the soil. Soils with a higher permeability produce less run off at a lower rate than soils with low permeability. When soil surface is compacted or crusted, water tends to run off rather than infiltrate. Erosion potential increases with increased run off. Topography is also critical in erosion. Slope length and slope angle play a large part in determining the velocity of run off. Soil erosion can be managed by mechanical and biological methods. Mechanical measures such as terracing, debris dams and other engineering structures have an immediate effect and operate at maximum efficiency, but their construction and maintenance costs will be high. Biological methods, such as use of live vegetation planted from cuttings, rooted plants and poles, are relatively cheaper but their immediate effect is smaller. However, once established the vegetation is self-perpet-
Karāpiro. If you are planning to attend, please let us know. • Bala Tikkisetty is a sustainable agriculture advisor at Waikato Regional Council. Contact him on 0800
uating and permanently effective. Waikato Regional Council’s catchment management officers can advise on soil conservation, riparian management and other good land management practices. We can also advise and help you in planting willow and poplar poles/bare rooted plants, including various aspects of planting to ensure the best possible strike and survival rates. Poplar and willow poles are ideal to plant on erosion-prone hillsides as their extensive root systems bind and hold the soil in place. Some varieties also suit shelter and windbreaks. Successful establishment of poles requires careful handling, storage, siting, planting and follow-up management. When transporting poles, make sure the bark is not bruised or damaged in any way which would allow diseases to strike. When securing loads, use straps or ropes and protective pads rather than chains. If planting is to be delayed more than a day after delivery, cut the poles diagonally on the butt end with a sharp axe or slasher, to give two slicing cuts about 15cm long. This will facilitate water uptake. Then place the poles in clean, well aerated water, or keep moist under a sprinkler, to assist future root and shoot growth, and to increase survivability. Some varieties are susceptible to over soaking. We can advise on correct handling. The council is organising a field day on sediment loss mitigation and pole planting on October 24 starting at 9.30am at Sir Don Rowlands Centre,
800 401 or email bala.tikkisetty@waikatoregion.govt.nz Once established, vegetion on farm is self-perpetuating and permanently effective.
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DAIRY NEWS JULY 23, 2019
22 // MANAGEMENT
Christchurch water will stay safe – irrigator NIGEL MALTHUS
NITRATE LEVELS in Christchurch drinking water are not expected to exceed safe drinking levels in the future, says Waimakariri Irrigation Ltd. The company has stepped into a debate on nitrates in underground aquifers following recent media coverage. WIL chief executive Brent Walton says it will be an important issue with local and regional elections coming up but the focus must be on science. A 2017 Environment Canterbury investigation of potential groundwater flows under the Waimakariri River into Christchurch aquifers had predicted a long-term increase in nitrate levels. But two key points made in ECan modelling seem to have been overlooked, Walton said. “The first is that any future nitrate increases in the Christchurch water supply are not expected to exceed safe drinking limits. Christchurch water will remain safe to drink. “ECan’s report says that while it is possible, during the next 50 to 100 years, that nitrates in aquifers below the main part of Christchurch
might increase, the levels are predicted to remain below the maximum acceptable value [based on recommendations from the World Health Organisation].” “The second key point is that ECan’s modelling is based on the premise of current land use continuing into the future, when we know that land use is already undergoing a change. “Extensive environmental mitigation continues by Waimakariri farmers and, with rapidly advancing technology, nitrates and other environmental management can only improve.” Further, the Ministry of Health has rejected calls for more research into a 2018 Danish study that reported possible links between the presence of nitrates in drinking water and colorectal cancer. The ministry said the Danish data did not take into account other colorectal cancer risks such as smoking, diet and obesity. Walton said some groups in society would pooh-pooh whatever facts were put in front of them, but a big middle ground of people would be looking for balance. However, WIL was not running away from any responsibility and farmers
accepted they had a key role to play in reducing nitrate levels. “There is not one WIL shareholder or farmer in this catchment who wants to see, or be responsible for, increased nitrate levels,” says Walton. All WIL farms that irrigate 20ha or more (about 108 properties) are required to have a farm environment plan (FEP), independently audited each year. Walton said every farm will be at good management practice (GMP) by 2020 and most will have either a B or an A audit by
September. “Our shareholders have invested heavily in infrastructure, including introducing modern irrigation systems, sophisticated effluent systems, fenced-off waterways and riparian plantings to improve water quality and reduce their environmental footprint.” Flowmeters, weather stations and telemetry monitors are being installed on all WIL properties to ensure efficient water use, by applying precisely the right amount of water at the right time. Farmers are provided with
Ground water flows under the Waimakariri River into acquifers, increasing nitrate levels long-term. Inset: Brent Walton, WIL chief executive.
daily, weekly and monthly recommendations on whether to irrigate via a mobile app. “We can now demonstrate that virtually every irrigation event is justified, and nitrogen leaching events caused by irrigation have been significantly reduced.” Walton says that farm-
ers are part of their community too. “They have children and wider families. They are concerned for the future wellbeing of their society, culture and environment. They take far more than their own economic wellbeing into account when they’re making decisions about the future operation of
NUTRIENT DISCHARGE LIMITS MEANWHILE, ECAN says it will notify Plan Change 7 to the Land & Water Regional Plan (LWRP) and Plan Change 2 to the Waimakariri River Regional Plan. Public submissions were due on July 20. The proposed changes build on the operative Nutrient Management and Waitaki Plan Change (Plan Change 5), which sets industry agreed good management practices as the minimum standard for all farming activities. Plan Change 7 includes proposed rules for the whole region and others only for the Orari Temuka Opihi Pareora and Waimakariri zones. “Something so wide ranging will certainly have an impact on people and communities throughout the region, particularly in South Canterbury and Waimakariri,” said ECan chair Steve Lowndes. The Waimakariri part of the plan change has provisions to limit nutrient discharges from farms progressively over decades. “Without taking away from the rest of the
plan change, these are particularly important proposals because they place new scientific modelling on nitrate within a planning framework and focus on managing the possibility of this contaminant heading towards groundwater under Christchurch city,” said Lowndes. “Let’s remember that in respect of nitrate concentrations, for example, we’re dealing with the impact of generations of land-use change. Even if we put in place rules and see land use change, it can take many decades for nitrate to move through groundwater. “The scientific modelling on nitrate suggests possible issues in the distant future for groundwater under Christchurch. “While we know from modelling studies that increasing nitrate levels under Christchurch is a risk, there is currently no measured evidence of any increase in nitrate in the aquifers under Christchurch. “We will be working very hard to keep it that way,” he said.
their farms. “The sector has made massive improvements in the past five years, and there is clear motivation to keep that momentum going into the future. “We are putting forward a solutions package as part of our submission to the Waimakariri zone implementation programme addendum (ZIPA). “WIL shares the same aim as the ZIPA, that is to develop a package of freshwater management solutions which best deliver community outcomes. “We are very clear that improvements can only be brought about by a combination of reduction in farming nitrogen losses and wider catchment interventions. “Our shareholders are here for the long term. I can assure the public that farmers are not sitting around waiting for the magic wand to appear. Rather than a cause, we want to be seen as part of the solution,” says Walton.
DAIRY NEWS JULY 23, 2019
ANIMAL HEALTH // 23
TBfree pioneer started at ground zero THE CANTERBURY
TBfree committee chair Malcolm Gilbert has retired after 15 years in the role. Gilbert, who farms deer and goats in North Canterbury, says the committee has helped grow awareness of wildlife disease vectors and their potential to spread bovine tuberculosis (TB) rapidly. “It’s been a big part of my life. I got involved in 1992, when it was the Canterbury regional animal committee.” He recalls the early TB control effort was ad hoc and depended on local farmers. “There was no national strategy, so we started voluntary farmer vector control groups which encouraged herd owners to manage and control their own properties. At its peak about 40
Malcolm Gilbert
farmer voluntary groups were involved.” Gilbert oversaw 21 of these groups. “It was only circumstantial evidence we had at the time, but the
Animal Health Board (AHB) backed us and provided resources and funding for toxins and traps.” The farmers persuaded the AHB to research the impact of the large ferret
population on the TB cycle in arid North Canterbury. In 2000 the AHB planned a regional strategy, blanking out areas from the coast to the hinterlands, after which live-
stock infections fell as more farmers killed vectors and promoted TB management in their areas. “We targeted hunters as we discovered pig
waste was another route for ferrets to get infected and this was a threat to the blocks of land we had under control. “We supported pig hunts and informed hunt-
ers about wildlife vector control and how they could help.” “There used to be 167 infected herds in our region, so we’ve progressed.” Still, we have a way to go nationally. It’s important not to forget the “hard times” so that the younger generations stay on track to reach those milestones and objectives. “That’s the challenge, as farmers tend to focus on the here and now.” Gilbert says the Mycoplasma bovis response could benefit from following the model of the TBfree committees. He says farmers should help make decisions. Gilbert is a salmon fisher and hunter and will continue deer velveting for a few years. @dairy_news facebook.com/dairynews
M.BOVIS REVIEWS TO BETTER SYSTEM ALMOST ALL the recommendations
from two reviews of the Mycoplasma bovis programme have been accepted, after the ‘surge in activity’ leading up to this year’s moving day. The surge arose because of a backlog in tracing animal movements, which had gone essentially unnoticed and was not fully realised until April. The reviews were commissioned to look into the cause and possible impacts of the backlog, and recommend how the programme could improve its systems and processes. One was done by MPI’s chief science advisor Dr John Roche. The other was an independent review commissioned by DairyNZ and done by South Australia animal disease management expert Dr Roger Paskin. The independent Technical Advi-
sory Group has also been asked to consider the impact of the backlog and is expected to report back soon. Roche’s review found that the backlog, although smaller than first thought, was due to issues with managing the flow of information between functions, and in the disease management team’s structure and resourcing. While it may have allowed some further spread of the disease, Roche did not believe it had harmed the chances of successfully eradicating M. bovis. Paskin identified issues related to the programme structure, staffing, training, management and supporting tools. He said the primary issue was an accumulation of traces to and from infected properties which had not been followed up, in some cases, for about seven months. – Nigel Malthus
RECOMMENDATIONS TOGETHER, ROCHE and Paskin’s reports made 43 recommendations to improve the systems and processes within the M. bovis programme. These include greater regional decisionmaking, the importance of farmer involvement and improving structures, systems and resourcing. Many of the suggested changes are already underway, e.g. enabling greater regional decisionmaking and better data management systems) and almost all the other recommenda-
tions have been accepted. MPI director-general Ray Smith said the two reviews had provided concrete ways to improve the programme’s systems and processes. “We’re very sorry for the impact this has had on affected farmers, and that we had to take the action we did at a busy time of year for many of them. “The programme is working hard to implement the recommendations of the reviews, starting with enabling more regional decisionmaking.”
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DAIRY NEWS JULY 23, 2019
24 // CALF REARING
Read the label PAM TIPA pamelat@ruralnews.co.nz
WHEN DEALING with
calf feed products it is important to read the labels, go online or ask your supplier for instructions and information, says Natalie Hughes, nutrition and quality manager at SealesWinslow. Incorrect mixing of calf milk replacer may undermine its nutritional quality or even make calves sick, Hughes says. Best practise is for farmers to choose products that deliver the correct nutritional components to support liveweight gain and rumen development. “We typically look at
the cost per tonne or the cost per kilo,” Hughes told Dairy News. “We need to look at the whole product. We need to consider the best way to use each product and what is actually in it.” This was one focus of a Dairy Womens Network ‘Successful Calf Rearing’ workshops run by Hughes with Fonterra FarmSource. “We talked about the importance of looking at the mixing ratios for different calf milk replacements,” she says. “And looking at what the ingredients are in different calf milk replacements and the ingredients in different calf meals.” Among other key takehome messages empha-
sised at the workshops was the need to carefully read the bag label. “Because everyone is so busy and frantic at this time of year, which is totally understandable, we are probably not taking the time to read the labelling,” Hughes said. The label on some milk replacer packs may say ‘mix 150gm of calf milk replacer with up to 1L of water’. What it actually means is add it to 850ml, she says. “Otherwise it will say add to 1L. Then you take 1L of water and you add your 150gm of calf milk replacer.” Getting the ratios wrong can have consequences. “From a digestion point of view, we
want to make sure that when calves drink milk or calf milk replacer, the oesophageal groove within the calf acts like a drafting gate to divert the milk down in the abomasum rather than the rumen. Otherwise the milk can ferment when it is in the rumen. “If we are diluting the calf milk replacer too much, ie if we are adding 1L of water instead of 850ml of water, we might find that we are diluting the amount of milk proteins present in the calf milk replacer solution. “It can end up going into the rumen because there are not enough milk proteins to create that diversion. “The consequences
Incorrect mixing of calf mix replacer could make calves sick.
can be poor growth and this may also make calves sick because they are unable to digest it properly because it is essen-
tially going into the wrong stomach. “So a key message is to read the bag labels. “If we want to double
check how much to feed or what the ratio is, then call the people you bought it from. We want to support farmers.”
WHAT’S IN THAT CALF MEAL? ON A calf meal bag the label may promote the dry matter and crude protein content, Hughes says. “To find out more information, look at your feed supplier’s website. This will typically give you the most up-to-date specifications on other feed components such as starch, fibre and fat levels. Hughes says everyone -- not just people in agriculture -- looks at and compares the cost of the weight of product. “We don’t dive deep into understanding the difference in value of what goes into a product. “It is the same as with a bag of chips. We look at the cost per bag. We don’t, for example, wonder about the amount of nutritional value in the chips. We look at it from a price view of things.” To understand the numbers
behind “what good looks like”, the National Research Council (NRC) is a global organisation which looks at the research on, metabolically, the best possible way of feeding an animal. “With calves, they talk about the amount of energy required for a calf. For a young new calf, the desired energy level is 13MJME/kgDM of meal. This decreases to 12.5MJME for
a 6-week-old calf. Taking time to find out what the specifications are allows better understanding of what is being purchased. “We work hard to grow the best calves we can, including having an economical system to develop the rumen as quickly as possible. “The reason for reading the label is the many products that, say, meet
the protein requirement. If a farmer is looking for 20% protein calf meal they may see mention of the 20%, but then the product varies in energy or starch content. “You could be buying product ‘A’ at $900/tonne, and you have product ‘B’ at $950/t, but they both list 20% protein. Automatically we go for the cheaper one instead of taking time to note that the $950/t product may contain more energy or a higher starch content.” Looking for good calf feed requires looking at all aspects, Hughes says. “If we want high energy, what is the price per unit of energy? We also want good vegetable proteins, such as canola, cottonseed and soy. “When we talk about having no fillers, it’s due to the size of the calves’ rumen. It is very restricted on space, so every mouthful needs to count.
Products such as palm kernel help in diluting the price but supplies only about 4% starch. A really good calf meal has ideally about 35-40% starch. “If we are aiming to meet the ideal starch percentage by feeding palm kernel then we need to feed 10 times more to achieve the starch percentage.” Hughes says the overall message is to take time to read about what the product contains. But if you are stuck or don’t understand – for instance there may be acronyms on labels – then ask the questions. “Ask what the acronyms mean, or what the raw ingredients are, or what impact it all has on the product, and why it is in there. It’s best to do all your product research before the season begins. Then you know what you are doing and why you are doing it.
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DAIRY NEWS JULY 23, 2019
CALF REARING // 25
Spring 2019 – are you ready? WITH SPRING just around the corner for many, it is time to recap on some rather sobering facts that highlight the importance of being prepared for the busy season. Firstly, in dairy cows, 80% of financial losses due to disease are incurred in the first month following calving. Unfortunately, in addition to disease further losses are common through involuntary culling and cow deaths and shown by researchers to be as high as 4% in the 2 weeks post calving. Heifers representing the herds best genetics make up a big proportion of these losses. Information sourced from the NZ dairy industry (2003) showed 1 in 5 maiden heifers entering the milking herd in their first season were absent by
their second lactation. This loss of heifers from the herd prior to making the second lactation is financially devastating as economics show that unless heifers complete a second lactation they have failed to cover their own cost of rearing. Both personal experience and information from industry highlight two of the major issues regularly causing big problems are; Clinical and Subclinical Milk Fever - failure to meet the cow’s require-
ment for calcium through the transition leading to low serum calcium Clinical and Subclinical Ketosis - failure to lessen the impact of fat mobilisation on liver function post calving leading to high serum ketones These metabolic diseases as I have mentioned in previous posts are considered ‘gateway diseases’ (especially Milk Fever) and set the stage for many downstream issues such as: ■■ Lowered Dry Matter Intake ■■ Increased chance of Displaced Abomasum ■■ Increased risk, duration and severity of mastitis ■■ Lowered Neutrophil function (leading to greater susceptibility to infection) ■■ Increased chance of
Optimise aninmal health and minimise disease in your herd this spring.
being Anoestrus at the start of mating ■■ Increased chance of Metritis So based on all of above, it is pretty important to ensure your bases are covered providing you the best chance to optimise animal health and
minimise disease in your herd. One way of ensuring the herd is firing on all cylinders is to perform an early lactation ‘Metabolic check’ on cows where up to 10 cows 4 – 5 days into lactation can be tested for BOH (Ketones) and
HAVE YOU DONE THE MATH?
Serum Calcium. If abnormal, appropriate management ‘tweaks’ can be made to rectify the situation. If in doubt, it pays to check it out! There is a lot at stake. Talk to your Veterinarian to determine if you
would benefit from such tests. • Greg Jarratt is a vet and director of Matamata Veterinary Services This article is brought to you by
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Whey protein for faster digestion
Number Calves
100
# Days Feeding CMR or Vat Milk
42
CMR BAG PRICE Sprayfo Blue CMR 20kg $78.00 ex GST Sprayfo Red CMR 20kg $72.00 ex GST
Dairy Payout
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Cost Vat Milk
$2.21
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Milk Solids % (FAT/PROTEIN)
8.70%
Cost Sprayfo Blue
$1.95
per calf/day
Cost Sprayfo Red
$1.80
per calf/day
Feed Rate Vat Milk (usually 5-6L)
4
L per day
Total Dry Matter per Calf/Day
500
g per day
Feed Rate CMR
4
L per day
Concentration CMR (can be 125-150gms)
125
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Total Dry Matter per Calf/Day
500
g per day
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Sprayfo Blue CMR
$0.49
Sprayfo Red CMR
$0.45
NOTE that this does not take into account dry matter content or feed rate required. See below for comparison.
Difference per day vs Vat Milk
Can be fed to calves from 4 days’ old
# Calves
Cost/Calf/Day
Total Cost per day
Total Cost All Days
Vat Milk
100
$2.21
$220.98
Sprayfo Blue CMR
100
$1.95
$195.00
-$25.88
$8,190.00
-$1,091.16
Sprayfo Red CMR
100
$1.80
$180.00
-$40.98
$7,560.00
-$1,721.16
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Difference All Days vs Vat Milk
$9,281.16
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DAIRY NEWS JULY 23, 2019
26 // CALF REARING
New-born need fresh colostrum ALL CALVES, including
bobbies, must get adequate fresh colostrum in their first 24 hours of life. And in their first four days, or more, feed them colostrum or a colostrum substitute. Calves should drink about 4-6L of fresh colostrum in their first 12 hours to get protective antibodies. To achieve this, pick up calves twice a day and give them gold colostrum as soon as possible. DairyNZ says farmers can test the level of antibodies in a batch of colostrum using a Brix refractometer, available from the vet, farm supply store or a home brew shop. Brix higher than 22% is best for newborns. Gold colostrum is best fed fresh but may be frozen for up to six months. Thaw/heat in warm water, do not microwave. Store colostrum in a lidded drum or vat and stir regularly. Colostrum should be refrigerated (at 4°C) or preserved using a chemical preservative such as potassium sorbate. It is crucial that calves receive colostrum after birth as they are born without an active immune system, making them highly vulnerable to infection. Calves should receive 10% of their body weight
of colostrum in the first 10 hours. Colostrum is important because it is a rich source of: • Fat and lactose: this provides energy as the newborn calf is born with low energy stores and poor insulation • Protein: for protein synthesis and muscle growth • Immunoglobulins (antibodies) provide passive immunity and help fight infection • Vitamins and minerals which provide high levels of vitamins A and E for health and immunity Early feeding of colostrum is essential because although when a calf is born its intestines are able to absorb the antibodies in the cow’s colostrum, the cells mature
rapidly and lose their ability to absorb these antibodies. After 24 hours only a small percentage will reach the calf’s bloodstream so will provide less immunity. The calf should receive colostrum soon after birth to have the best chance of absorbing antibodies. Tube feed calves colostrum if necessary. Colostrum should be good quality and from the first milking, as later milk production contains lower antibodies and nutrients. The quality of colostrum is affected by the number of pregnancies the cow has had. Because older cows have been exposed to more infections than heifers, they have higher
levels of antibodies in their colostrum. A supply of frozen colostrum should be kept on hand for feeding when fresh colostrum is not available. Take care to thaw it gradually. Overheating the colostrum will destroy the antibodies and supply lower immunity to the calf. Colostrum should be good quality, fed in sufficient quantities and fed quickly. Without this passive immunity from colostrum, calves are much more susceptible to disease and have a higher risk of dying. Colostrum should be fed for the first three to four days after birth before changing to whole milk or milk replacer.
Watch, crack down on scours SCOURS IS a nasty disease to watch
for in calves. There are two types of scours: nutritional and infectious. Nutritional scours occurs when unclotted milk enters a calf’s small intestine due to stress, overfeeding or poor quality milk or milk replacer. To prevent nutritional scours do not overfeed calves. Make diet changes slowly and use good quality milk/milk replacers. Feed calves at the same time each day and by the same person. Consistency is the key to reducing stress. Infectious scours can be caused by bacteria (E-Coli and salmonella), protozoa (coccidiosis and cryptosporidia) and viruses (coronavirus and rotavirus). Consult your veterinarian when calves start scouring. The vet will have the scours diagnosed by laboratory analysis, rather than by scour colour, so that scours can be treated promptly and effectively. The first treatment for both types of scours is similar. Remove calves from milk and feed them electrolytes. These will provide the calf with energy and water and replace body salts lost via scouring. Provide calves eight litres of electrolyte daily in several small feeds. During scouring, calves may die from dehydration and lack of energy, but not from the scours themselves. During serious infectious scours the vet may need to prescribe medication extra to electrolytes. Coccidiosis, another prevalent disease, is caused by protozoa that destroy the finger-like villi in the small intestine that absorb nutrients. The worst cases of coccidiosis will have bloody scours, but most calves
won’t have any visible signs, they will just grow more slowly. Calves going onto grass should be on clean pasture to keep their worm burden low. De-worm them every three to four weeks from weaning to winter.
It is cheaper and easier to prevent disease than cure it, so biosecurity and hygiene are important. Control the flow of people in and around the calf barn and only allow access to essential people. Keep visitors away from calf barns. Have dedicated equipment for the calf barn and ensure that it is kept clean. This includes wearing clean clothing and boots. Always wash hands with soap and warm water before and after handling calves, feed and feeding equipment. Keep sick calves in a separate pen away from the others. Keep handy a safe, quality virucidal spray. Locate the calf barn away from cows and dairy effluent. Cows can carry disease, and calves do not have the fully developed immune system of a cow so they will get sick more readily than cows. • Source: CRT Calf Rearing Guide
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DAIRY NEWS JULY 23, 2019
CALF REARING // 27
Keep diseases away from sheds IF YOU’RE buying or
selling calves or milk, take these simple steps to reduce the risk of spreading Mycoplasma bovis and other diseases. M. bovis is a bacterial disease that can cause serious illness in calves and adult cattle. DairyNZ says calves can contract the disease by direct contact with infected cattle or by consuming milk from infected cows. About 80 to 90% of infected cattle show no clinical signs, making it nearly impossible to detect a cow suffering from M. bovis by looking at her. Testing herds for M. bovis is complex, which means negative results are a good sign, but not definitive proof that a herd is completely free of the disease. And M. bovis is shed intermittently by infected cattle. Shedding and clinical disease typically occur in times of stress, such as at calving. It is important that every precaution possible is taken to prevent M. bovis from spreading. This includes precautions when buying
or selling calves or milk, when it’s vital to take biosecurity practices and animal health history into account. When buying calves, stock movements are the highest risk for spreading M. bovis. Buy them from as few sources as possible: deal directly with the source farm or via an agent. Don’t hesitate to ask about any M. bovis test results available from the farm. Also ask if the farm has been subject to any M. bovis tracing by MPI. Ask about the stock trading practices of the farm and also if all stock movement records are up to date and recorded in NAIT. Get a picture of cow and calf health on the farm for the past two seasons, and use the pre-purchase checklist available at dairynz.co.nz/mbovis. Avoid buying from saleyards because of the cattle mixing that occurs there. Buy only calves with NAIT tags and promptly record all movements. Ask your trucker to avoid mixing calves with other cattle in holding
yards or on the truck and keep bought-in calves isolated from your main group for seven days and monitor them for signs of disease.
Find a buyer now for your future weaned calves, if possible, and tell buyers about your efforts to reduce risk of M. bovis exposure.
SELLING CALVES?
All calves must be registered in NAIT within 180 days of birth, or before their first movement off-farm, whichever comes first.
DON’T FEED BAD MILK FEEDING INFECTED milk is the second-highest risk of spreading M. bovis. Milk at lowest risk of containing M. bovis bacteria comes in these forms: calf milk replacer powder, acidified milk, or pasteurised milk. If you’re using milk replacer powder, order now to avoid problems with supply. If you’re feeding whole milk, consider the following: ■■ Do not feed milk from cows under treatment for mastitis or other illnesses. This milk should be discarded. These cows are more likely to shed M. bovis into their milk than healthy cows. ■■
Acidification with citric acid to a pH 5.0 or below for at least eight hours will kill M. bovis, but below a pH 4.0 the milk will be unpalatable and the calves will refuse to drink it. DairyNZ’s recommended target is pH 4.5.
■■
Pasteurisation will kill M. bovis if the machine is working correctly and the proper procedures are followed. A pasteurising machine is a big expense.
■■
Addition of yoghurt to milk is a less reliable way to reduce the pH, as this process takes more time and is temperature dependent to get the culture growing. If the pH doesn’t drop below 5.0 for at least eight hours, M. bovis will not be killed.
Help build animal traceability and support disease management
NAIT is an OSPRI programme
Need help? 0800 482 463 7am-8pm (Mon-Fri), 9am-1pm (Sat)
ospri.co.nz
DAIRY NEWS JULY 23, 2019
28 // CALF REARING
Avoid spreading M.bovis CALF CLUB organisers must take extra biosecurity steps this spring to avoid the spread of Mycoplasma bovis, says MPI. The ministry has created a poster and a teacher pack with basic biosecurity tips, to help keep calves healthy on the day. Packs have been mailed to 1000 rural schools. They tell how to transport and hold calves (separate pens, at least 2m apart, own water and food), being registered with NAIT, and ensuring a safe environment for calves and people. Bringing together animals from different herds poses a relatively low risk of disease spread, but precautions minimise the hazard risks. “Calf club is part of rural life,” says MPI. “But in the wake of the M.
MPI poster sent out to rural schools.
bovis outbreak, some events have not gone ahead. “MPI is supporting clubs to ensure good bios-
ecurity, so that risks are minimised and calf club is fun for everyone.” Keeping calves separate is the key, as M. bovis
is mainly spread via long nose-to-nose contact. Holding pens are the best way to keep individual calves separate from each other. Calves should not share milk. Calves from different herds or farms should be transported to and from calf club separately, and kept separate at all times. If calves are sick they should stay on the farm. To help reduce contact between calves while they’re parading, calves should wear a halter at all times. MPI says someone must supervise calves while they’re being led around, to control them and keep them apart. Full NAIT compliance is also essential -- keeping complete and accurate NAIT records. This means all calves attending calf
Calf club organisers are being urged to be wary of M.bovis.
club must have a readable NAIT ear tag. MPI says it has seen no evidence that M. bovis survives for long once exposed to air and UV
light, so the risk is low of it spreading via effluent. But in the interests of general hygiene and biosecurity it’s a good idea to lay down straw to collect
effluent. “Regularly remove faeces from the ground. Use hand sanitiser to minimise risks of transmitting.”
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DAIRY NEWS JULY 23, 2019
CALF REARING // 29
Waste milk as a feed? Waste milk has traditionally been fed to calves as it can’t be sent for supply. But is this a good idea? DairyNZ senior scientist Jane Lacy-Hulbert investigates. THE INCREASED focus
on responsible use of antibiotics has raised a question about waste milk’s value as a feed source for calves, and the risks this practice might pose to the wider environment. Waste (or ‘red’) milk is produced by lactating cows when they’re sick and receiving antimicrobial treatment for diseases such as mastitis. It also applies to the milk produced in the withholding period, which can be three to four days after treatment. Exposing a bacterial population (such as the calf’s developing digestive tract) to low concentrations of antibiotics may encourage bacterial growth with existing resistance genes. It could also lead to other bacteria mutating and developing new ways to resist antibiotics. The risk is that calves consuming this milk will shed antibiotic- resistant faecal bacteria into the environment. This could have unintended consequences for your calves and for the future usefulness of the antibiotic. This is backed by a substantial review pub-
lished in the European Union in 2017. The review found that shedding was more pronounced by younger calves (two to three weeks old) than by six- to seven-week-old calves. Fortunately this shedding wasn’t observed in calves fed colostrum from cows previously treated at dry-off with long- acting dry cow antibiotic products. Unfortunately pasteurising waste milk won’t deactivate the residues as most antibiotics are heatstable. Although there are few studies on this aspect, it’s likely that antibiotic residues would interfere with calves establishing good gut bacteria, or that pathogens and viruses from older, sick cows could infect the young calf. If there were more antibiotic resistant bacteria present in the gut these issues would be harder to control. Although waste milk may be a convenient feed for calves, is it worth risking the health of the replacement calf or the environment? One thing is certain: it cannot be fed to bobby calves, as
the calf’s gut is likely to absorb the antibiotic residues and cause the carcase to be rejected. • Find out more about calf care at dairynz.co.nz/calves
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DAIRY NEWS JULY 23, 2019
30 // CALF REARING
Be NAIT ready IF YOU are selling calves
this winter, first register them in the NAIT online system, says Southland dairy farmer Nigel Johnston. The law says calves must be tagged and registered in NAIT before they are moved off farm. “Remember too, if
you’re rearing calves, any future movements they make off farm must be recorded in NAIT and confirmed by the farmer at the other end,” Johnston says. “This builds animal traceability and supports disease management.” Saleyards may record
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NAIT account regularly to ensure animals have been registered and movements recorded. Managing and moving calves is a critical factor in animal health. About 1. 5 million calves are reared annually in New Zealand. Not tagging and registering calves in NAIT affects the accuracy of the system and undermines lifetime animal traceability, a basic aspect of NAIT. If you don’t you could be fined or prosecuted if caught. Johnston says dairy farmers and lifestylers can also help improve tag retention by correctly tagging newborns. “Tag your calves to the right ear, the inner centre, between the two veins for better retention.” More information: www.ospri.co.nz/tagandregisteryouranimals
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movements to their yards on behalf of farmers, but farmers must tag and register calves before moving them off farm. Farmers buying calves should request an animal status declaration form (ASD) from the seller. This tells the calves’ health status and confirms where the animal originated from. If you use an information provider such as LIC (Minda), CRV Ambreed or Farm IQ to register your tagged calves, you must ensure the registration has synchronized through to your NAIT account before the animals move off farm. OSPRI advises farmers to contact their information provider to check they are meeting their NAIT obligations. If you use Minda or Farm IQ software, check your
ALL CATTLE and deer must be tagged with a NAIT approved RFID tag and registered in the NAIT online system within six months of birth or before they are moved off farm, whichever comes first. Once NAIT animals are tagged, animal registration must be completed within seven days, or before their first off farm movement, whichever comes first. ■■ NAIT tags may not be removed without permission from NAIT ■■
NAIT tags may not be reused for any reason
■■
NAIT animals may not be moved to a different NAIT location without a NAIT tag (exemptions apply under the NAIT Act, see below)
When tagging NAIT animals, we recommend that you follow the tag manufacturer’s instructions for maximum tag retention. Also, record the tag number(s) or the tag sequence range used when tagging animals to make it easier to register the animals in the NAIT online system, or to locate the tag numbers in your NAIT account when re-registering the animals if they have lost their original RFID tag.
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DAIRY NEWS JULY 23, 2019
CALF REARING // 31
Transition period critical for stock GRAINCORP FEEDS
is offering dairy farmers advice on transition feeding for their calving season as a means of improving cow health and lifting milk production, reports general manager Daniel Calcinai. He says the transition period covers the four weeks before and after calving and is a critical time for the dairy cow. “The transition period is a brief but critically important time when as much as 80% of disease costs are generated and an average 4% of animals have to be culled from the herd,” Calcinai says. “Farmers know their cows’ demand for nutrients is high at this time of the year. It’s important to set up animals well so they have a smooth calving and minimise the risk of milk fever and other metabolic diseases. That’s what transition feeding is about.” While it’s a relatively
new concept to the industry, Calcinai says, getting transition nutrition correct helps enhance rumen function, improve metabolism, boost immunity and reduce the incidence of milk fever. “It can also help prevent other metabolic diseases such as ketosis, retained foetal membrane and lameness, which in turn reduces cost and lifts seasonal profitability. “In respect of financials, we often refer to the return on [spend] from feeding the right feed at the right time, and this is particularly relevant for transition feeding. “Based on DairyNZ data, the direct cost of milk fever alone can be $8000 per 100 cows. On a 300 cow farm this equates to $24,000. For a small [spend] on the right transition product these costs can be slashed. “Getting milk into the vat earlier to reach high peak milk and holding it
for longer starts during that transition period.” Recently, GrainCorp and animal nutrition specialist Nutritech held a seminar for Taranaki farmers on the benefits of Transition feeding. “Farmers enthused about the potential of transition feeding for their herd’s health and for saving time and money,” says Calcinai. “Reducing your number of down cows logically means less time spent lifting animals and administering costly drugs.” Graincorp Feeds has developed products to help farmers get their transition nutrition right, Calcinai says. “Every farmer has a different feeding set-up. We have a loose product mix that can be added to feed-out wagons or mixed with dry blended feeds on farm. DCAD (dietary cation anion difference) is a
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DAIRY NEWS JULY 23, 2019
32 // MACHINERY & PRODUCTS
Robotic Bobcat works tight spots MARK DANIEL markd@ruralnews.co.nz
A REMOTE control
Bobcat enables the popular machine to be worked in the usual tight spots -with nobody in the operator seat. The manufacturer is reckoned the first to introduce such a system as original plug and play equipment, and it’s compatible with the company’s selectable joystick controls. Remote control especially suits extreme environs where a machine-bound operator would otherwise be at risk, eg in flood, mud, rockslide or forest fire. Doosan Bobcat loader project manager Jiri Karmazin says the system can be used in many applications.
“It allows users to focus on visibility and communicate with their surroundings without being in the cab. “There are also obvious benefits for workers in situations where noise, vibration or dust may bring harsh risks.” As well as allowing direct sight of the work, the system increases the loader’s versatility with attachments like angle brooms, breakers, buckets, snow blowers, tren-
chers or wheel-saws, where the operator have to work in reverse for much of the job. The controller is easily portable and quickly mounted or dismounted from the loader in a few minutes, leaving the machine in its original form. Remote control kits are housed in a rugged waterproof enclosure, and have a 20 hour battery, a dedicated access password and a 9cm colour LCD
display that can show fuel level and temperature and other key data.
The operators has control of all key functions including the throttle,
creep and float controls, speed management and, of course, the emergency
stop button. @dairy_news facebook.com/dairynews
MTF MAKES CALF FEEDING A BREEZE MARK DANIEL markd@ruralnews.co.nz
BIGGER AND better, says Stallion
chief executive Grant Allen describing the company’s largest MTF mobile calf feeder, the Mixer Tanker Feeder. Designed to feed 60-65 calves on the 80-teat feeder, the largest MTF is for farmers wanting to save time and energy, Allen says. “People are buying larger mobile units to raise calves in bigger mobs, saving time and reducing the number of trips”. The MTF is easy to use for trans-
porting and mixing colostrum, milk powder or any other calving supplement for feeding. It comes in 50, 60, 70 or 80 teat configurations and can hold 1000L. It has a robust galvanised frame and a tandem axle layout. Its standard single cylinder Honda four stroke engine powers the pump, and the engine can be optioned with electric start, making the process of mixing and distributing milk as easy as turning a key. The 1000L tank is easily filled using a camlock fast fill connection. Its rear mounted hose and dispenser nozzle allow a seamless, easy switch from paddock to pen feeding.
Easy cleaning starts with a quickfit hose connection at the rear of the unit. When the operator fills the tank to about one quarter this starts the pump which activates self cleaning that takes about three minutes. Also, the easy clean manifold design allows fast draining of residual rinse water. Stallion has designed and manufactured calf feeders and transport gear for 30 years. Allen has good advice for calf rearers: “Don’t skimp on the number of teats on the feeder. Calves grow rapidly so always aim to see 10-15% of the teats free to avoid overcrowding and bullying.” www.stallion.co.nz
DAIRY NEWS JULY 23, 2019
MACHINERY & PRODUCTS // 33
Two-wheeler gives the best of both worlds MARK DANIEL markd@ruralnews.co.nz
REGARDLESS OF the debate about quads versus side x sides, two-wheelers remain crucial to many livestock farmers. Honda’s latest CRF 250F takes such machines to another level, with Blue Wing Honda claiming this one is equally great on farm and off the property for weekend fun. Dairy News spent a couple of weeks riding one in Waikato just as the cold and wet set in, plus the start of the calving season for good measure. First impressions are of a machine slightly tall for some riders, but not
so for this 1.8m reviewer. It has a seat 88cm high, firm yet comfortable and long enough so that the rider can move back during acceleration to get weight onto the rear wheel. Power, and there’s plenty of it, comes from an all new 250cc single cylinder, SOHC unit with fuel injection and electric start. The engine mates with a five-speed gearbox that sends the final drive to the rear wheel with an O-ring sealed chain, so no maintenance worries. The newly designed frame uses a lightweight, twin spar set-up with manufacturing quality and finish you’d expect from Honda. In use it proved
stable and easily moved between the rider’s legs to adapt to changing terrain and angles. Up front, a 21-inch wheel is held in 41mm front forks with long travel, excellent damping and controlled rebound over all surfaces. At the rear, the preferred choice is an 18-inch wheel working with the central Pro-Link single shock configuration that is smooth, progressive and controlled in all situations. A well engineered side stand completes the frame detail. Noticeable on the CRF 250F is the lack of any excess controls, so it’s easy to operate and has
Honda’s latest CRF 250F.
less to go wrong. Other than a headlight, there’s an ignition key, kill switch and electric starter button – that’s it. No speedo, no fuel gauge, although the 6L fuel tank warning light shows when its down to the reserve. Add to that an hour meter next to the head-
stock for routine servicing intervals, then you’ll get the idea. Performance is impressive across a broad spread of engine speed, with smooth delivery. Clutch and brake levers are light to operate, with the latter easily giving a controlled stop by
‘wave style’ discs at front and rear. Living with the machine was easy given its simplicity, and it felt well engineered and put together. Are there any negatives? It might be a little ‘tall’ in the gearing for following a dairy herd along
a race, but that’s easily fixed with a sprocket change. And the seat may be too high for a short rider. A neutral light would be nice, as would a small rack to carry a few electric fence standards, but overall an easy machine to live with.
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DAIRY NEWS JULY 23, 2019
34 // MACHINERY & PRODUCTS
It’s a family affair ADAM FRICKER
TIME WAS when a Holden Kingswood was a staple car for the larger New Zealand family. Ours was a dark green HX sedan and it carried six people plus luggage, no worries. Things have changed and Holden is going where the family buyers are now shopping -- the SUV segment, leaving the NZ Police and rental car companies to soak up most of the local supply of Commodore sedans. We’ve recently sampled the core of the Holden SUV range: the small Trax, the mid-size Equinox and the large Acadia to see how these new Aussies handle the modern Kiwi family lifestyle. The Trax competes in an increasingly busy part of the SUV spectrum, vying with the Mazda CX3 and Hyundai Kona, to name just two. Compact SUVs offer a lot more utility than hatchbacks and you now see them everywhere. Holden’s contender, the Trax, isn’t the newest or most sophisticated in its class but it’s good value. It surprised with more interior volume than expected, longer legs on the open road and better performance than you’d credit a 1.4L four cylinder with. The turbo does its best work in the lower revs making real world driving effortless. No point revving it out beyond 4000rpm where it gets a
From left to right: Holden’s Trax, Equinox and Acadia.
bit harsh. It’s only a 2WD but that’s all most people need with this sort of car and the extra ground clearance comes in handy on occasions, going where a normal hatchback would fear to tread. A bit small for some families though,
which brings us to the Equinox. This replaces the Captiva and looks and drives a lot better, especially with the 2L turbocharged petrol engine with 188kW of power and 353Nm of torque – figures the old Kingswood could only have dreamed of. Performance is effort-
less and the Equinox is among the fastest in its class. Pulling power is more relevant in a family car, of course, and peak torque is available from a very useable 2500rpm. Tested in LTZ-V specification, our car came fully loaded with leather, full
length sunroof, active safety like lane keeping, heated front seats and heated steering wheel to name just a few of the features. Currently on offer for $46,990, the LTZ-V is good buying as a competent and spacious 4WD family wagon. The ride is a bit firm in town but comes into its own on the open road with assured handling. In the ‘good old days’ if your tribe needed more seats than a sedan, you might have looked at a Premier station wagon with a dickey seat in the massive boot. Today’s equivalent is the seven seat Acadia, coming to you from America with a 3.6L petrol V6, loads of chrome and room for the larger family. We’ve driven this a few times now and remain impressed with its ride and performance, at least in the top spec LTZ-V model which has adaptive shock absorbers. The V6 engine and 9-speed automatic are a good combination, although many revs are required to shift this much bulk, so fuel economy takes a hit. But that’s no worse than others in its class. Add to the Holden SUV line-up the off-roadable Trailblazer and the Commodore based Tourer wagon and you’ve got plenty of choice from the Australian stalwart. Not Aussie made anymore but that’s not necessarily a bad thing.
POWER WITH CLEVER NEW TRAILER SOCKET MARK DANIEL markd@ruralnews.co.nz
NARVA HAS released a seven-pin flat
trailer socket with a heavy duty battery connector that makes it extra versatile. The product suits drivers who regularly tow and who need battery maintenance on a trailer with powered equipment.
The 7-pin trailer plug delivers power to operate the standard stop, tail, reverse and licence plate lights, and it has a connector that delivers up to 50A of power to the battery to charge, maintain or power equipment. The new socket and connector allow equipment to be powered while being towed, making sure its ready for use at a destination. This socket and connector comprise
a moulded hard plastic housing for reliability, and its low profile design makes it easy to mount and compatible with the standard mounting plate on most common towbars. When not in use, it fits into a rubber tab. Side tabs make the spring loaded cover easy to open. The product has silver plated copper contacts to suit 8mm² (8B&S) cables. www.narva.co.nz
INCREASE PRODUCTION AND PERFORMANCE Hundreds of users of HerdHomes® shelters agree, an investment in HerdHomes® Shelters is an investment in the on going productivity of your farm The future of productive farming www.herdhomes.co.nz M + 64 27 499 0123 P + 64 7 857 0528
NZ Patent Numbers: 521150, 544190, 550635, 545042. Further patents pending. International Patent Numbers: 2003267874, 03748807.9. Further patents pending
INTRODUCING
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Everyone knows that iconic Red Band gumboots are durable and hard-wearing. And now, with the addition of a brand-new safety boot to the range, they’re tougher than ever before. Combining proven construction with a sturdy cotton/canvas lining, a steel safety toe cap and an all-terrain nitrate rubber outsole, Red Band Safety gumboots are perfect for pretty much any undertaking.
SPECIAL INTRODUCTORY OFFERS AVAILABLE AT LEADING RURAL RETAILERS SKE_DN_2307
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Behind New Zealand Dairy See the video at JohnDeere.co.nz
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