Dairy News 14 June 2022

Former co-op chair humbled by honour. PAGE 10 ALL IN THE FAMILY Contest heats up PAGE 15

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JUNE 14, 2022 ISSUE 496 // www.dairynews.co.nz

FARMLEVEL LEVY PLEASE! DairyNZ chair Jim van der Poel says during the He Waka Eke Noa consultation, 99% of farmers opposed agriculture being included in the ETS and 86% supported the farm-level proposal.

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DAIRY NEWS JUNE 14, 2022

NEWS // 3

Farmers propose farm-level levy PETER BURKE peterb@ruralnews.co.nz

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approach.”

That’s how Michael Ahie, the chair of Primary Sector Climate Action Partnership – He Wake Eke Noa (HWEN) describes the group’s much anticipated report to Government on the system it wants them to adopt in respect of reducing agricultural emissions and sequestering carbon on farm.

HWEN comprises thirteen primary sector groups including Māori agribusiness and was set up in 2019 in a bid to stop government lumping agriculture into the Emissions Trading Scheme (ETS). Since then it’s been developing an alternative approach and has consulted widely on this.

Ahie says it’s important to remember that New Zealand has a biological economy and that the ETS is not the answer to dealing with agricultural emissions.

The main recommendation of the 80-page report is that a farm-level, split-gas levy with built-in incentives to reduce emissions and sequester carbon be adopted from 2025. During the recent consultation with farmers, this was the favoured option, rather than the levy being collected at the processing level. The farmlevel concept is seen as the more forward looking approach because it rewards, by way of a reduced levy, individual farmers who reduce their

He Waka Eke Noa chair Michael Ahie believes their proposal is the best approach.

emissions, while those who don’t will be required to pay the full levy.

The other key element in the report is a proposal to set up an oversight board and a Māori advisory board to ensure that the interests of farmers and Māori are considered during the implementation phase.

It is proposed that the oversight board would have a role in setting strategy and direct investment from the farm-level split-gas levy, a governance role and work closely with the Māori advisory board.

Ahie, a dairy farmer himself, says the recommendations enable sustainable food and fibre production for future generations, while playing a fair part in meeting the coun-

try’s climate commitments. He says the recommended approach would enhance NZ’s reputation as world leaders in low-emission food production and keep us ahead of competitors.

“I believe that HWEN is the right answer and we have worked through this with farmers; I am hopeful the Government will support our proposals,” he says.

Ahie says there is seriously good science behind the recommendations and the collective has worked hard over the past two years, engaging some very bright people to give advice.

“To the critics, I say – what is the alternative? If you can come up with

one that is going to be better for NZ, let me know. Our partners consider the recommended approach is robust and credible, delivers on farmer feedback and meets the Government’s environmental outcomes.

It sees the sector investing its own funds in incentivising and supporting farmers and growers to take up practices and technologies,” he says.

Ahie says the farm-level system being recommended would enable each farmer and grower to clearly see the direct impact of their onfarm decisions and would give them incentives for using new technologies and practices as they become available and financial recognition of on-farm carbon sequestration.

He says the cost impact will vary from farm-to-farm. He says their modelling shows the proposal will have no impact on farm profit on some properties, but for some it could be up to 7.2%. He says he’s confident the sector is up for the challenge and already 60% of farmers know their on-farm emissions.

Ahie says the message to farmers about the proposal is the same one he would give to his aunties: “Here is the simplest, best system by which we can meet the emission reduction targets and be good to the whenua.

We have worked hard, listened to farmers, listened to everybody and put together a very good system.”

The proposal is now in the hands of the Government who have until the end of the year to decide whether to accept, reject or modify the recommendations.

DAIRY NEWS JUNE 14, 2022

4 // NEWS

DairyNZ backs HWEN proposal PETER BURKE peterb@ruralnews.co.nz

DAIRYNZ CHAIRMAN Jim van der Poel says the He Waka Eke Noa (HWEN) climate proposal is a win-win for all New Zealanders.

Speaking to Dairy News at the launch of the HWEN proposal last week, he noted that while it was not easy to reach a solution, the actual outcome is fit for purpose.

He says, during the HWEN consultation programme, 99% of farmers opposed agriculture being included in the ETS and 86% supported the farm-level proposal.

“This is because farmers want to be recognised for their own emissions, not just an industry average, and if they have some behavioural change or if they do something on farm to lessen their emissions, they want to be recognised for that,” he says.

Van der Poel says under

the HWEN proposal there is an opportunity for levy funds to be recycled back to fund new research and tools to further help farmers reduce their emissions. He says the consultation process, although run at a difficult time during the pandemic, still saw 2,600 farmers engage by attending workshops or tuning into webinars. He says that feedback helped shape DairyNZ’s position.

“Unlike the ETS, the HWEN system will actually reduce emissions, and will recognise and incentivise on-farm actions. It will invest in R&D to find new solutions, building on the already significant primary sector investment – including by dairy farmers – via DairyNZ,” he says.

He says the proposal is expected to reduce methane emissions by between 4 to 5.5%.

He says alongside other actions underway to reduce emissions, HWEN would help achieve methane emission reductions of 10%, in line with the legis-

lated reduction target.

“Crucially, the He Waka Eke Noa system would enable farmers to continue running successful businesses, which means we continue contributing to our families, the economy and local communities,” he says.

Van der Poel says DairyNZ fought really hard for an opportunity to develop a better solution after the Government passed legislation to say it would put agriculture into the ETS. He says there is an proposal, given that they have gone into this process in good faith. He says they will work with government to get their support.

As for the critics, Van der Poel had this to say: “There are always parties who are going to play politics around this – that is to be expected.

“But now our objective is to put something in place that works for farming, helps NZ meet its commitment to the Paris Accord and is enduring… so that it sits out of the threeyear political cycle.”

DairyNZ chair Jim van der Poel says farmers want to be recognised for their own emissions, not just an industry average.

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DAIRY NEWS JUNE 14, 2022

NEWS // 5

Proposal will resonate with our global markets – DCANZ PETER BURKE peterb@ruralnews.co.nz

THE CHAIR of the Dairy Companies Association (DCANZ), Malcolm Bailey says a key outcome of He Waka Eke Noa (HWEN) is that it will resonate with our markets and customers who are saying they want to see our emissions coming down.

Bailey was at the launch of the HWEN report. He says NZ is already in a good position globally and we want to do our bit for the climate change challenge. But he says, at the same time, we have to recognise that farming has got to be viable in order to produce enough to feed the world.

“So we have got a lot of almost conflicting pressure in some ways, but

The HWEN proposal is now with the Government, who will decide by the end of this year whether farming will be part of an ETS.

DCANZ chairman Malcolm Bailey says global customers want to see our emissions coming down.

that has already been recognised in the Paris Agreement of 2015. NZ is walking the line and in fact is doing more on this than our peers in other

countries. We are proud to be doing something that will really take the world forward,” he says.

To the critics who say farmers have been let off

the hook, Bailey says, “no way”.

He says the fact that a lot of farmers are very apprehensive about what the future looks like,

because of what we are recommending, says that real change is going to occur on farm. He says some of the best farmers are already dealing with reducing their emissions on farm and the hope is that HWEN will help lift up lesser performing farmers to a higher level

and be part of the solution.

“We hope that there will be new technologies that will enable us to make further cuts but we can’t just naively assume that we are going to find a silver bullet. It doesn’t work like that – there will be a range of things

that will bring our emissions down. But its got to happen in a way that maintains our competitiveness.”

Bailey says NZ is already the best in the world in terms of emissions per kg of output and it’s about staying in that leading position.

CAREFUL CONSIDERATION – GOVT THE GOVERNMENT says it will take time to carefully consider the report from the He Waka Eke Noa partnership.

Agriculture Minister Damien O’Connor says advice from the Climate Change Commission will be sought on the proposals.

He thanked HWEN partners for their work, which has been under way since the Government, farming lead-

ers and Māori agreed to a world-first partnership to reduce primary sector emissions in 2019.

“The sector and the wider public will have the opportunity to provide their view before Cabinet makes final decisions towards the end of the year on how to effectively price emissions,” O’Connor says.

“We are all committed to pricing agricultural emissions to ensure their

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reduction from 2025, and reiterate that commitment today.

“It’s really important that we get this right. Customers around the world are demanding higher levels of sustainability in the products they buy, so there is the potential for real competitive advantage here if we can get this right and continue moving to sustainable farming systems that are ready to respond to a warming world.

O’Connor says the Government committed almost $380 million over four years in Budget 2022 to accelerate efforts to lower agricultural emissions.

“It sees us establishing the new Centre for Climate Action on Agricultural Emissions as a joint venture with business to accelerate the product development of tools for farmers to reduce emissions.

“We’re also developing specialised climate-focused extension services and expanding our support for Māori agribusinesses,” O’Connor says.

Climate Change Minister James Shaw says the agriculture sector has a crucial role to play in meeting the recently set emissions budgets.

“We need to urgently cut emissions across all sectors of the economy – and that includes agriculture.”

DAIRY NEWS JUNE 14, 2022

6 // NEWS

Fonterra shares rise as buyback plan unveiled kgMS they supply to the co-operative, rather than the current one-for-one ratio.

McBride says, in making the decision to buy back shares, the board considered prevailing prices in the Fonterra Shareholders Market (FSM), alongside the co-op’s strategy and overall business performance.

“When assessing the value of Fonterra shares the board considers a range of factors, including the strong industry fundamentals and the co-op’s long-term strategy and performance targets.

“We also consider the merits of a buy-back alongside other investment opportunities we have in the pipeline.

“These have a range of

FONTERRA SHARES

recorded a jump last week after the co-operative unveiled plans of a $50 million share buyback scheme.

The shares, which can be owned only by farmers, closed last Wednesday at $2.85, up from their record low on $2.22 late last month but down from $4.56 on May 5, 2021.

Chairman Peter McBride said Fonterra has “looked at prevailing prices” alongside the cooperative’s strategy and overall business performance.

“The co-op considers the prevailing price, particularly since late April, has undervalued Fonterra shares, which is a key reason for announcing this buyback,”

Fonterra shares have plummetted in recent months.

is separate from Fonterra’s plan to spend $300m on supporting liquid-

McBride says.

The buyback may run for up to 12 months. It

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Fonterra chairman Peter McBride says the prevailing share price prompted the $50m share buyback.

risk and return profiles, but overall we believe there is room in our portfolio of investments for buying back shares at a price that we consider to be undervalued. Once purchased by the co-op, these shares will be cancelled, which means

future earnings are distributed amongst a lower number of shares.

In an email to farmers, McBride says the co-op will report how many shares it buys and the average price the day after, “so you will know what we have bought”.

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PETER MCBRIDE notes that Fonterra is preparing to implement the Flexible Shareholding structure but has not yet set a date for when it will be effective.

In April, the Government announced its support for the structure and has signalled that it expects the amendments to progress through Parliament this year.

“We remind shareholders that even though share compliance obligations remain on hold until at least 6 months after the new structure is effective, shareholders can still buy or sell

shares within Fonterra’s current constitutional limits (which is generally 1x – 2x a supplying shareholders’ three-season average milk supply).

“Shareholders should seek advice from their financial advisor, accountant, lawyer, or rural professional before making any decisions,” says McBride.

The maximum number of shares that may be acquired pursuant to this buyback programme and the Transitional Buyback (should that also proceed under section 65 of the Companies Act) taken together

over the next 12 months is 80,667,893 shares.

This number of shares is set in accordance with section 65 of the Companies Act and represents 5% of Fonterra’s shares on issue 12 months prior to the acquisition of shares.

The number of shares purchased under the buyback from time to time, and the average price, will be notified to the NZX and ASX on the business day following the date on which those shares are bought back. @dairy_news facebook.com/dairynews

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DAIRY NEWS JUNE 14, 2022

NEWS // 7

A victory for rural health PETER BURKE peterb@ruralnews.co.nz

IT’S FANTASTIC and

positive news for rural health and rural communities.

That’s how Dr Fiona Bolden, the chair of Hauora Taiwhenua Rural Health Network which represents all rural health groups, describes the decision by the Minister of Health Andrew Little to have a separate and legally binding rural strategy in the new health reforms.

Initially a special strategy for rural sector was in the bill, along with strategies for Maori, Pacifica, women and people with disabilities, but ‘rural’ was taken out by the labour majority on the select committee.

Bolden strongly criticised the omission of ‘rural’ saying it was outrageous and left 750,000 people enrolled in rural practices out in the wilderness.

But when the bill was brought back to Parliament, Minister Little announced that rural would go back into the bill, citing pressure from Labour’s rural caucus.

Bolden told Dairy News her organisation is so pleased that the health of rural communities will now be prioritised in the legislation. She says its inclusion will mean that rural health will have its own strategy developed, health outcome data tracked, and government agencies held accountable for those outcomes.

“Rural communities, many with high percentages of Māori, can now have some surety that they will be visible and front of mind among government agencies when these health reforms are implemented come 1 July,” she says.

Bolden says a lot of

Dr Fiona Bolden, chair Rural Health Network.

work was done behind the scenes to get the Government to change its mind about making ‘rural’ a priority.

“It was a multi-tiered thing involving a lot of people over the long period of time to get the change. It involved a lot of meetings with key people and MPs from other parties did good work in Parliament,” she says.

According to Bolden, having a rural strategy will have more long-term rather than short-term benefits and she hopes it will encourage young doctors and health professionals to see a future working in rural health.

She says there are a number of issues to be tackled in terms of rural health: namely, having a workforce plan to create a well-trained, supported rural workforce across all specialities, acknowledging the huge gap around the clinical workforce at the moment. Dr Bolden says more funding is needed to address the pay anomaly which sees primary health care workers paid less than those in hospitals.

“This is well known issue that needs address-

ing if we are going to attract people into rural.

It seems that Minister Little does have an interest in addressing inequity wherever it is,” she says.

Bolden says there has been some criticism about the need for reform in general practice, but rural general practice is very complex because there are a large number of different models operating. She says some practices are privately owned, some are owned by DHBs and others by PHOs and many operate in very low income rural communities and don’t make a profit.

Dr Bolden says, in some places, things aren’t working well.

“But there are some places where it is working really well. People have been innovative and have found solutions, and we certainly don’t operate from antiquated model.

That doesn’t happen in rural because people there tend to be more innovative. You have to, in order to survive,” she says.

Bolden says, with the passing of the new bill and with rural having its own strategy, she is hopeful that some of these long-standing issues will be addressed.

DAIRY NEWS JUNE 14, 2022

8 // NEWS

South Island dairy farmers embrace a dynamic future OVER 420 dairy farmers

gathered in Oamaru last week for SIDE 2022, with a focus on building skills and discussing solutions to challenges facing the farming sector.

The SIDE theme was dynamic and event chair Anna Wakelin opened the event by saying that farmers across New Zealand are taking control of their futures and standing up for positive change.

“We’re on the right track. It’s tough, but we can be proud of our low carbon footprint, our innovation and progress, and our work which supports communities through the bad times and the good.

“It’s staggering that just 11,000 dairy farms contribute almost $21 bil-

SIDE 2022 MC Sarah Perriam (left) with keynote speakers Geoff and Justine Ross at Oamaru.

lion to New Zealand’s economy,” she added.

The first keynote speakers, farmers Geoff and Justine Ross of Lake Hawea Station, shared their story of how they became New Zealand’s first carbon positive certified farm.

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The couple developed 42 Below vodka, then later left their Auckland home to farm in Otago.

They applied their knowledge of marketing and branding to their farming businesses and visited their international customers to understand their needs.

“We saw an opportunity to create carbon positive wool produced to the highest animal welfare standards, using a new shearing model based on

care for the sheep, which fashion brands would be prepared to pay a premium for,” Geoff explains.

“Having to reduce greenhouse gas emissions is creating a lot of anxiety amongst farmers, but we can also see this as an opportunity.”

The couple are excited about the opportunities to reduce emissions by using voluntary native carbon credits, asparagopsis seaweed, vaccines, selective breeding, changing stock

Halter founder Craig Piggott talking about technology and innovation at SIDE 2022.

diets, and other emerging technologies.

Justine finished with the message that farmers can contribute to finding climate solutions, and that they should be brave and share their stories with the world as their customers want to hear them.

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Craig Piggott discussed how technology was driving change in the farming sector and enabling farmers to become more profitable, improve animal care and reduce workload on farms.

Craig is the founder of Halter which uses software and solar powered cow collars to guide cow movements.

This technology allows farmers to use virtual fencing and remove fence lines, schedule cow movements on the farm, and draft herds in a paddock.

“Farmers tell us that Halter allows them to look after their land and animals better, and be more profitable too,” Craig says.

“We want to build a product which helps keep

cows happy and healthy.

Moving herds virtually helps keep cows really calm, as it’s not stressful.”

Craig says the company is innovating fast to respond to farmer needs by developing new tools, and he expects the pace of change will continue to increase rapidly.

“You have to think outside the box to become better. One of the strengths of the New Zealand dairy industry is also that everyone works together and you need to be able to do that to innovate.”

Over the two-day event, farmers also participated in practical workshops on topics including wintering, milk futures, reproduction, plantain and reducing greenhouse gas emissions.

DAIRY NEWS JUNE 14, 2022

NEWS // 9

‘Expect dairy prices to rise’ DAIRY PRICES are

expected to recover more lost ground, says Westpac senior agri economist Nathan Penny.

He made the comment as Global Dairy Trade (GDT) recorded its first rise in the price index after five consecutive declines.

Last week’s GDT saw the price index rise 1.5%, while key whole milk powder (WMP) prices were down 0.3%.

But Penny says the headline price index hides a lot of detail, especially as not all products and contracts are offered at every auction.

Digging into the details and looking at the weighted average price for all products reveals a much stronger picture, with prices up 5.1% at this auction, he adds.

Moreover, that price

strength was broad based.

Five out of the six products that they monitor posted price gains. WMP prices (up 5.7%) posted the largest gain, but butter prices were a close second (up 5.5%). Only cheddar prices fell.

“This result was also stronger than expectations,” he says.

“Immediately prior to the auction, the futures market had indicated a circa 4% rise in WMP prices, while back on Friday we had pencilled in a 2% price rise.”

The auction price rise follows the easing of Covid restrictions in China, particularly in Shanghai, Penny notes.

“That coupled with the lower auction volumes on offer, compared to surge we saw in May, are the likely catalysts for the price strength.

FOOD, FIBRE EXPORTS SOARING EXPORT REVENUE from New Zealand’s food

and fibre sector is expected to reach a record $52.2 billion in the year to June 30, 2022.

Dairy export revenue is on track to reach a record high of $21.6 billion, 13% higher than the previous year.

Agriculture Minister Damien O’Connor says the latest Situation and Outlook for Primary Industries (SOPI) reports, released last week, shows that this will be the first time we’ve hit more than $50 billion in food and fibre exports, an increase of almost 10% on the previous year.

“This is a tremendous result for the sector as farmers, growers and others in the supply chains who play such a critical role in our economy.

“They have continued to deliver quality products for Kiwis and overseas consumers while navigating global disruption and uncertainty.

“Our markets abroad are demanding high-quality products that are made with care, and this report indicates our exporters are responding to these market signals.

“To that end, the Government is investing to support farmers and growers to deliver food and fibre with low emissions and high sustainability, which will provide us economic security.”

Damien O’Connor said the SOPI, released by the Ministry of Primary Industries (MPI), forecast significant growth across the majority of our food and fibre exports.

“From here, we expect prices to recover more of the lost ground.”

Penny says WMP prices still remain 12.6% lower than the recent

peak in March. “We assume that Covid restrictions in China will ease further over coming weeks, taking dairy demand higher as a result.

At the same time, we expect global dairy supply to remain very tight, further underpinning prices.” @dairy_news facebook.com/dairynews

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Westpac senior agri economist Nathan Penny expects dairy prices to regain lost ground now China’s lockdowns are easing.

DAIRY NEWS JUNE 14, 2022

10 // NEWS

Former co-op chair accepts award on behalf of farmers SUDESH KISSUN sudeshk@ruralnews.co.nz

FORMER FONTERRA

chairman John Monaghan says he’s quite humbled to make the Queen’s Birthday and Platinum Jubilee honours list.

Monaghan, who stepped down as the cooperative chairman in 2020, was appointed Companion of the New Zealand Order of Merit (CNZM).

He was one of a handful of recipients associated with the agriculture sector.

Monaghan told Dairy News that he received an email a couple of weeks ago confirming his

“’I’m quite humbled by it: made me take out time to reflect. It was a call-out for the dairy industry and I’m proud to accept it on behalf of the industry.”

CNZM honour.

He couldn’t tell family until Monday morning, the Queen’s Birthday public holiday. The award coincided with another happy occasion – his

Former Fonterra chair John Mongahan says he’s quite humbled by the appointment.

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ding over the long weekend.

Monaghan says the award was unexpected. “’I’m quite humbled by it: made me take out time to reflect. It was a call-out for the dairy industry and I’m proud to accept it on behalf of the industry.”

Monaghan says the dairy industry keeps on delivering for everyone.

“It starts on our farms, goes through our staff and plants and across the global markets and it keeps on delivering.”

Monaghan, who now

lives in Martinborough, still owns a farm in Eketahuna and farming interests in Otago.

He remains very proud of the co-op and these days keeps “a close eye on the co-op from the back paddocks”.

“Fonterra is showing good results and good leadership,” he says.

Monaghan has been associated with Fonterra since its formation in 2001.

He was an inaugural Fonterra Shareholders Council member and

served as the council chairman from 2004 to 2007.

In 2008, he joined Fonterra as a director. He chaired the co-op board from 2018 to 2020, overseeing a reset of the cooperative’s strategy and culture, and a global change management process.

He was a director of Wellington Centrepoint Limited. Within his community, Monaghan chaired Eketahuna School’s Board of Trustees and is former club

captain and junior-side coach of the Eketahuna Rugby Club.

Minister for Rural Communities Damien O’Connor extended his congratulations to the rural New Zealanders recognised for their service.

“I’m so pleased to see the recipients recognised for their contribution to rural communities, and to Aotearoa New Zealand more widely,” O’Connor says.

“John Monaghan, appointed as a Companion of the New Zealand Order of Merit, has been influential in the dairy industry through his work with Fonterra since its formation in 2001, supporting the company to become one of New Zealand’s top performing international companies.”

Taranaki farmer Bryan Hocken and veteran agricultural journalist Hugh Stringleman also received honours – both appointed as a Member of the New Zealand Order of Merit (MNZM), Hocken, who has had a farming career of more than 50 years, was president of Taranaki Federated Farmers from 2006 to 2008.

RURAL INSURER IS TOP WORKPLACE RURAL INSURER FMG has been named one of 40 Gallup Exceptional Workplaces from around the world.

According to Gallup, winners of the Gallup Exceptional Workplace Award consistently put people – both employees and customers – and their values at the center of their decision making.

As an award winner, FMG ranks among a select group of organisations around the globe, as well as being the only one from New Zealand.

The nomination of Matt Harvey, its head of national advice and service centre, as one of just 10 finalists worldwide in the Manager of the Year category is another feather in FMG’s cap as a workplace that puts its people first,

the company says.

Chief People Officer Pete Frizzell says the recognition shows a focus on wellbeing drives better outcomes.

“It also speaks to the importance of a strong values-led culture for overall performance, even more so in a tight labour market. It’s so critical to be a great place to work.

To value your employees and their wellbeing so they bring their whole selves to the job and feel supported so they can thrive.”

Frizzell says the company is reaping the rewards from having a highly engaged workforce.

“FMG is going from strength to strength as a New Zealand owned and operated business that recognises the importance of putting people first and supporting our

rural communities. As a mutual we don’t pay a dividend to shareholders – 100% of our profits go back into the business.”

He says FMG’s balanced approach establishes relationships between profitability, customer loyalty, employee satisfaction, loyalty, and productivity.

“Profit and growth are stimulated primarily by client loyalty.

Loyalty is a direct result of client engagement. Client engagement is largely influenced by the value of services provided to customers. Value is created by motivated, loyal and productive employees,” says Pete.

“This recognition from Gallup shows how effective this strategy is. Everybody wins when employee wellbeing is made a top priority.”

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DAIRY NEWS JUNE 14, 2022

NEWS // 13

THINKING MONITORING? THINK ALLFLEX Fonterra Co-operative Council chair James Barron says a diverse range of products and markets has allowed the co-op to respond to disruptions around the globe.

Co-op’s product range, global reach pays off SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA’S COUNCIL chair

says the co-operative’s third quarter results show the benefits of having a business of scale.

Fonterra Co-operative Council chair James Barron says a diverse range of products and markets has allowed the co-op to respond to disruptions around the globe.

“The results show again the benefits of joining together to form a cooperative of scale,” says Barron.

“Utilising all of our diverse range of products and markets to respond to disruptions across the globe continues to underpin our co-op’s performance.”

Fonterra’s third quarter result was a mixed bag: for nine months ending April 30, total normalised EBIT was $825 million, down $134 million, reflecting lower sales volumes, continued pressure on margins from the significantly higher milk price, on-going Covid-19 disruptions and the rapid decline of the Sri Lankan Rupee.

This was also reflected in Fonterra’s net profit, down $131m to $472m.

The co-op’s businesses in Greater China and Asia Pacific suffered due to Covid and Sri Lankan unrest. However, its Americas and Middle Eastern business performed very well.

The co-operative copped an $81 million hit in the key market of Sri Lanka, which has been facing political turmoil.

A rapid decline of the Sri Lankan rupee means it takes more Sri Lankan Rupee to pay for Fonterra product purchased from New Zealand, which is sold in US dollars.

Sri Lanka is one of the few countries in the world where Fonterra collects and processes milk.

According to its website, since 1997, Fonterra Brands Lanka has been collecting milk from its local farmers for set and stirred yoghurt, drinking yoghurt, fresh milk and flavoured milk.

Currently, milk is collected from 4,500 local dairy farmers. Sri Lanka is also a key market for milk powder from NZMP. While Sri Lanka impacted Fonterra’s APAC business, the co-operative’s Africa, Middle East, Europe, North Asia and the Americas division (AMENA) continued to deliver a strong performance.

Normalised EBIT for AMENA

was $406 million, up 30% due to improved gross margins in the ingredients channel, and a strong performance from the Chilean business.

However, Fonterra also took a hit in its Greater China divisions, thanks to Covid lockdowns in key cities.

In Greater China, ingredients continued to benefit from increased sales of higher margin products. However, normalised EBIT was down 17% to $317 million, due to continued pressure on margins from the higher milk price, particularly in foodservice, as well as the Covid-19 lockdowns.

Hurrell says he expects the impact of the lockdowns to show up in our fourth quarter results.

“Aside from some supermarkets, all restaurants and other food outlets were closed in Shanghai in early April to contain the Omicron outbreak.

“While restrictions have started to ease, a number of food outlets remain closed, while other cities across China are facing Covid-19 restrictions.

“The impacts of this, and the disruptions to supply chains, have been felt across the market and are reflected in our Greater China sales volumes which are down on the same time last year.”

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Fonterra shares bounce around est level in over three months. Its share price has dipped since the co-op started consulting on its capital structure review and liquidity in the FSM has been low.

“We know there is concern about the decline in our share price over recent weeks and the impact this is having on your balance sheets,” McBride told farmers in an email.

“As set out in the capital structure consultation and voting documents last year, we will be putting in place additional arrangements to

support liquidity in the FSM when we transition to the new Flexible Shareholding structure, including through arrangements with one or more market-makers.

“While those arrangements are still being worked on, Fonterra will on an interim basis be providing additional financial support to the current registered volume provider to more actively support liquidity in the FSM.” @dairy_news facebook.com/dairynews

NZ-NON-220500003

FONTERRA’S SHARE price jumped on the news that the co-op will provide financial support to improve liquidity in its share trading platform – the Fonterra Shareholders Market.

After the co-op’s share price plummeted to $2.29/share, compared to trading at $3.15 just three months ago, chairman Peter McBride wrote to farmer shareholders advising of the move.

Last week, Fonterra’s share price reached $3.09/share, its high-

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DAIRY NEWS JUNE 14, 2022

14 // NEWS

A herd to suit all systems MAXIMISING PERCOW production has

always been an interest of Manawatu dairy farmers Craig and Raewyne Passey – and Holstein Friesian cattle have proven the ideal breed to achieve this.

Milking 500 cows on 180ha effective at Kairanga, just outside of Palmerston North, Craig and Raewyne have 348 registered Holstein Friesian cattle under the Aron-Amy Stud.

Named for Craig’s grandparents, the farm was originally a 1919 settlement farm of 19ha when his grandfather returned from World War I. Craig grew up on the farm, after his father took over from his own parents, and in 1978 Craig started work on the family farm.

“Farming was something I always wanted to do,” he says. “In 1981 I started as a 39% sharemilker of 96 cows for my parents. At that stage the farm was 44ha, of which 12 was leased. I then went 50/50 sharemilking in 1983.”

Craig met Raewyne through a mutual friend; she was the daughter of an Army Major who had travelled internationally with his family. They married in 1989.

Sheer hard work and consistency has been the foundation of the Passeys’ success. The couple bought their first block in 1991, while they were sharemilking. Bit by bit, land was purchased until

PUREBRED HERD THE ARON-AMY herd is purebred Holstein Friesian except for the yearlings, which are mated to crossbreed bulls for ease of calving.

“When choosing genetics, BW and PW are still important to us, but are not the be-all and end-all,” Craig says.

“I’ve tried to build the herd so if it was sold one day, it would be suitable for all levels of feed systems from 1-5.”

He says they are focused on achieving good protein and fat percentages in their milk. The temperament of the current herd is fantastic and this is due to prior focus on breeding for it.

A former AI technician for LIC, Craig uses 70% nominated semen, which is a mix of genomic and proven sires, and 30% premier sires.

Craig Passey believes in maximsing production per cow.

the farm reached its current size of 202ha (180ha effective). The Passeys ended up purchasing seven blocks in total from neighbours to create the farm.

Craig says when their three children were small, they had a 12-a-side herringbone dairy shed and 200 cows to milk, with no labour.

To add fuel to the fire, their three children are triplets Tyler, Kaitlin and Jenna.

“They arrived when we were just starting our business,” Craig says.

“Milking took a long time and I worked very long hours.”

When they went on to milk 320 cows through a 16-a-side shed, they ended up splitting the herd into two mobs – two/threeyear-olds and four years

The herd averages 500kgMS/cow.

and older; the herd is still split today, although they built a new 44-bail rotary dairy in 2004.

“Having a split herd really suits the farm,” Craig says. “The farm has been added onto so many times. Also, the two-yearolds do so much better on their own, without the competition.”

In 1995, the Passeys

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employed their first staff member; today, they have three, including Tyler.

“We are very lucky to have Tyler working for us,” Craig says. “He has been working on farm for 14 years and has a great knowledge of the farm, managing for us until Hayley came on board.”

Hayley Hoogendyk is the Passeys’ farm man-

ager. She has been with them for five years and is a valuable part of the farm team.

“Having Hayley is great – she is so good with the cows and has a great interest in the breeding side of things,” Craig says. “We are very fortunate to have settled staff in Hayley and Conrad Schrieber, who has been

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The herd has a lot of Fairmont Mint-Edition daughters, and more recently, they have used San Ray FM Beamer-ET S2F. “Beamer daughters are excellent production cows and often come out on top,” Craig says.

The Passeys have a good worklife balance, enjoying going away to their lake house, spending time with their grandchildren, and following their racehorses.

“It is important to us that the on-farm team is also able to enjoy a good work-life balance, which the altered milking times after Christmas assists with,” Craig says. “We will also continue to focus on improving the herd overall and would like to increase per cow production while maintaining the current feed system.”

with us for the past three years.”

The herd, which sends 500 kgMS/cow to the factory annually, is milked twice a day. Instead of moving to once-a-day milking before Christmas, milking times are adjusted: cows go through the shed at 5am and 11.30am, meaning they are in the paddock, not the shed, during the hottest parts of the day.

“We don’t lose any production and we are done by 2pm, which is great for both the cows, and team wellbeing,” Hayley says.

Craig says when trying to achieve his goal of maximising per-cow production, Holstein Friesian is an obvious choice.

“To get more milk production from fewer cows is a trademark of the

Holstein Friesian breed,” Craig says. “They have always been a preference of mine. The breed produces bigger cows, with good capacity and better milk production.”

Craig says his father had a good herd when he purchased it.

“Our herd code is 744 – not many herds would still have a three-digit code these days!” he says.

“When I started sharemilking, I did have crossbred cows in the herd, but I was never sure of how their daughters would turn out. With the Holstein Friesians we have today, we are reasonably sure that a good cow will produce a good replacement.”

The herd calves August 1, and from October 20 and the farm undertakes six and a half weeks of AI.

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DAIRY NEWS JUNE 14, 2022

NEWS // 15

SETTING THE BENCHMARK

Chris Poole (right) and Tim Dangen are two of the finalists for the FMG Young Farmer of the Year title.

Brothers-inlaw go head-tohead in final WITH 100KG of bricks stacked

on top of a homemade sled hurriedly built out of a pallet, brothers-in-law Chris Poole and Tim Dangen take off in a timed race.

As 2022 FMG Young Farmer of the Year Grand Finalists, it was part of their preparation – all under the watchful eye of Emma Poole, nee Dangen.

The pair will go head-to-head in July representing their regions – Waikato Bay of Plenty for Chris Poole, 28, and Northern for Tim Dangen, 30.

Emma herself was a 2019 FMG Young Farmer of the Year Grand Finalist and wants to make sure her big brother and husband are prepared for the grueling three-day event in July.

“It was hilarious watching them go against each other. Tim looks a lot more physical and stronger than Chris but I saw Chris motor past him while they were doing the running and Tim looking out the corner of his eye thinking ‘what the hell’,” she laughed.

Emma reckons the pair are competing ‘with’ each other, rather than ‘against’ each other.

“They seem to be helping each other out a lot and hopefully that’ll be an advantage to them doing it together, rather than doing it separately,” she said.

Chris agreed saying the pair have been sharing study notes and giving

each other advice where they can.

“We’re not just brothers in law, we’re really good mates so it makes it a bit more fun than it usually would be,” he said.

“Regardless of the result, we’ll both be happy for whoever comes out on top and it’ll pretty fun doing it together.”

Despite jokes of sabotage from Dangen, he hopes one of them will give it a good nudge and take out the FMG Young Farmer of the Year title.

“It’s going to be fun, I’m excited to compete with Chris. We’ll push each other, I know that, but at the end of the day I’ll be just as happy if he won, to myself winning,” Dangen said.

“The competition deserves respect in itself; when you look at past champions you want to be able to stack yourself up against them with the knowledge you’ve tried as hard as you can.”

Emma and Chris are based on his family dairy farm near Pirongia which they’ve bought into.

She juggles her time being a new mum with their four-month-old son Beau, a veterinarian, rearing calves and building a house on the farm – all while ensuring the boys are prepared.

Having done it before, she said she understands the challenge and is able to be there to push the boys a bit more when they don’t feel like it.

“It’s quite a challenging thing to

go through and it’s hard to motivate yourself every day you come off the farm to do more study and practice,” she said.

Chris said she’s constantly in his ear reminding him to practice, and Dangen said the two speak most days as she’s one of the main people in his support network.

“There’s a fair bit of knowledge there to draw on and a different train of thinking which is what you need in this – diverse minds coming together to try and tackle all the challenges,” Dangen said.

Asked who she’s backing, Emma’s answer was “no comment”. Upon reflection, she said, “actually a new New Holland tractor might be nice”.

She predicts each competitor will be stronger in their respective fields: Chris a dairy farmer and Tim a beef farmer.

“I think it’ll end up being what modules on the day show up and it’ll randomly swing one of their ways,” she said.

The three-day Grand Final is a great opportunity for both families to come together, something she’s really looking forward to.

“I don’t know if I’ll be able to watch though,” she laughs. “I’ll just be happy to see them both finish with a smile on their face.” @dairy_news facebook.com/dairynews

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DAIRY NEWS JUNE 14, 2022

16 // NEWS

Silage wrap maker joins scheme A MAJOR manufacturer and distributor of silage wrap has joined the Plasback agricultural plastics recycling scheme.

Integrated Packaging general manager Mark Bunt says his company is

the only local distributor of silage film that manufactures its products in this country.

“The technology used in silage balers and wrappers continues to advance and that means we have

to continually innovate to improve our products. The same applies to how we deal with plastic waste,” Brunt says.

“As a company we are committed to being environmentally responsible.

Because we are a local manufacturer, we are in a unique position to ‘close the loop’ and help create a circular economy in which silage waste is reused on a sustainable basis here in New Zealand through our

Intergrated Packaging says as a company it is committed to being environmentally responsible.

Plasback commercial manager Neal Shaw.

manufacturing process.”

Brunt says Plasback provides a viable model for collecting farm waste.

“In its product stewardship guidelines, the government wants to see products recycled into like products, which means waste silage wrap turned back into silage wrap. We also want to see this happen, and our relationship with Plasback creates an opportunity to do this.”

Integrated Packaging is a division of ProPac Group Pty Limited.

Its sister company Astron already uses some of the plastic that Plasback collects to produce Tuffboard, a UV-resistant plastic plywood.

Plasback’s commercial manager Neal Shaw says this is another step forward as New Zealand’s farm plastics sector continues to reduce its environmental footprint.

Shaw says it is important that silage wrap distributors lead by doing rather than wait for the government to impose measures on the industry.

“After a thorough review of the options available for recycling silage wrap, Integrated Packaging determined that Plasback’s on-farm bin and liner collection system offers the most efficient way to recover waste plastic.

“It is good to see Kiwi silage wrap distributors taking the step to support the scheme rather than have the government legislate mandatory fees, which could ultimately cost the industry more and be less convenient for farmers.”

Shaw says there is one manufacturer and about 12 distributors of silage wrap in New Zealand and now nine of them have joined the Plasback scheme.

“This represents more than 90% of the national silage wrap market by volume, which is fantastic.

“We welcome others to join the scheme and demonstrate their commitment to managing the waste produced by the products they put into the market.

“We believe it is a winwin for companies that join Plasback because their customers can see they are doing the right thing and taking a responsible approach to waste management. We are stronger as an industry when we work together.”

He says, given its status as a manufacturer, the addition of Integrated Packaging to the silage wrap recycling effort is an important advance in the efforts to create a true product stewardship scheme.

DAIRY NEWS JUNE 14, 2022

AGRIBUSINESS // 17

“Our somatic cell count was sitting at 150,000.

Since installing the iSPRAY4, it’s settled at 90,000”.

Holstein Friesian breeders will gather in Palmerston North later this month for their annual conference.

Holstein Friesian breeders to gather for annual conference IT WILL likely be a case of second – or third – time lucky for the winner of the 2022 Valden Cow of the Year, with five of the six finalists of the prestigious Holstein Friesian cow competition having been nominated at least once before.

The 2022 Valden Cow of the Year trophy, to be presented at the 2022 Holstein Friesian NZ annual meeting and conference in Palmerston North from later this month, acknowledges the cow that has completed at least four lactations and is deemed to have, or have the potential to, contribute to the Holstein Friesian breed on a continual basis.

All eligible cows are automatically entered with the finalists sorted from the 2020/21 production season.

Cows bred by Stephen and Judith Ray of Raymac Holsteins, Balclutha, have won for the past two years: Raymac ME Expresso VG87 5* SP in 2021, and her dam, Raymac Justice Esonny EX 20* ET, in 2020.They have a third cow, Raymac ME Orace VG87 3* SP in the top six this year.

The 2022 Holstein Friesian NZ conference is a highlight on the association’s event calendar, with members converging on the Manawatu this year for four days of networking, awards dinners, herd visits, sightseeing, an elite genetics sale and youth auction.

The HFNZ AGM will be held on Monday, June 20.

The Manawatu region boasts some of the top Holstein Friesian genetics seen in the show ring. The Conference programme includes three farm visits where elite stock from studs around the region are transported to one location so members can see them in one place.

Studs showcasing animals include high-achieving bull breeders Lightburn Holstein Friesians, who have had 78 bulls enrolled with NZAEL since 2007; Joyclas Friesians, owners of Joyclas Sammy Moo S3F EX, winner of the 2022 NZ Dairy Event Holstein Friesian Supreme Champion Cow title; and the Rowe family’s Maire stud, three-time winners of the Mahoe Trophy.

In addition to the herd visits, attendees will be taken on sightseeing tours that include the Greenhouse Gas Research Centre, Te Apiti Wind Farm, Tui Brewery, Massey University Veterinary Teaching Hospital, NZ Rugby Museum and Valhalla Seed Treatment.

Awards ceremonies throughout the week include the 2022 HFNZSemex On-Farm Awards and the HFNZ Awards night, which presents awards such as the 2022 Black & White Youth Awards; 2022 Valden Cow of the Year and 2022 Mahoe

Trophy; 2022 HFNZ-Boehringer Ingelheim Animal Health Progeny Competition; 2022 Nutritech Performance Awards; 2022 World Wide Sires Protein Awards; 2022 Verwaayen Farms/Weatherbys Scientific Genomic Awards, and the 2022 HFNZ-DeLaval All NZ Photo Competition.

The ever-popular Black & White Youth Auction will be held on the evening of Tuesday, June 21; last year the auction raised $13,485 for the HFNZ Youth and Young Breeder programmes to continue annual awards and events such as the Arapeta, Kingsland and Pitcairns Trophies; NZ Black & White Youth Show Trip and National All Dairy Breeds Youth Camp.

This year, an Elite Genetics Sale will take place at Manfeild, before the Conference is rounded off with a Your Favourite Kiwi Icon-themed dinner and dance.

HFNZ president Doug Courtman says the annual Holstein Friesian NZ Conference is a time of celebration.

“It is a time when the host branch can highlight their breeders and local attractions,” he says.

“We will celebrate, at a national level, the winning breeders and animals that contribute to making our Holstein Friesian breed so successful.”

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How can you reduce your reliance on imported feed?

MAYBE THE ANSWER IS SIMPLY TO GROW A BIT E With the air of uncertainty around imported feeds in both the short and long term, now is a good time to explore alternatives. And you don’t have to look far. Planting an extra paddock in maize at home, or ordering more maize silage in, may be all that’s needed.

Maize silage is the ideal supplement to pasture. The cows love the stuff, it helps you maintain high production and milk quality when your feed levels dip (and will keep for years if they don’t). To find out about adding more maize to your farm system, contact your local Pioneer representative, call 0800 PIONEER or visit pioneer.co.nz/maize-silage

DAIRY NEWS JUNE 14, 2022

AGRIBUSINESS // 19

A guide to assist farmers design, operate wetlands DAIRYNZ AND NIWA have joined forces to help farms with wetland design and performance.

The new Wetland Practitioner Guide – Wetland Design and Performance Estimates was recently launched at a Waikato dairy farm which features as a case study.

DairyNZ’s Waikato Dairy Environment Leaders joined the launch to learn more about the benefits of wetlands.

DairyNZ general manager for sustainable dairy, Dr David Burger, says as farmers increasingly look to protect and develop wetlands, advice is often sought on how to design wetlands to maximise their performance.

BETTER DESIGN AND PERFORMANCE The guidance covers: ■ wetland performance, design, sizing, siting, and costs ■

selecting and establishing plants, and wetland maintenance

■

wetland case studies from across New Zealand.

■

The guidance is supported by twelve regional councils, Fish & Game NZ and the Waikato River Authority. It can be downloaded at www.dairynz.co.nz/wetlands

“With more farmers looking to reduce their environmental impact, there’s growing interest in re-establishing and constructing new wetlands,” says Burger.

“We know wetlands

can significantly reduce nutrient and sediment losses on farms. They also provide habitat for birds and fish, improve biodiversity and help create an attractive farm environment.”

In 2015, with funding from the Waikato River Authority, Gray and Marilyn Baldwin developed a wetland on their 713 hectare, 850 cow dairy farm near Putaruru in South Waikato.

The Waikato River Authority, DairyNZ, NIWA, Opus, Hill Laboratories, and Waikato Regional Council worked together with the Baldwin Family Trust on the project. The aim was to improve knowledge of wetland design and performance and share this with Waikato farmers and the community.

Over 12,000 native plants were planted at the site by local community groups.

EXTRA

Dairy NZ’s David Burger speaks to the group at the Baldwin Family Trust’s wetland in South Waikato.

Gray Baldwin presenting to guests in front on the constructed wetland.

Main people involved in the project, from back David Burger, DairyNZ; James Sukias, NIWA; Aslan Wright-Stow, DairyNZ; Chris Tanner, NIWA, Craig Depree, DairyNZ. In front is farm owner Gray Baldwin.

“Our farm is located in the Upper Karapiro catchment, which is one of the more sensitive ones in the Waikato region, as it drains into the Karapiro,” says Gray Baldwin.

“We want to improve local waterways and we see the wetland as being important to the whole catchment. It is a taonga.”

The family are pleased to see biodiversity in the area improving and native birds flourishing.

With funding from DairyNZ, NIWA scientists monitored water flows and contaminant concentrations to assess the Baldwin’s wetland performance.

Despite its relatively small size (around one percent of the farm catchment area), good design and extensive planting means the wetland removes around 60% of

nitrogen, 70% of sediment and 20% of phosphorus from the water it receives.

The new guidelines highlight that as wetlands increase from one to five percent of a catchment area: ■ sediment removal typically increases from 50 to 90% ■ nitrogen removal increases from 25 to 52% in warmer zones of New Zealand ■ nitrogen removal increases from 18 to 38% in cooler zones of New Zealand ■ phosphorus removal increases from 25 to 48%.

The guidance is the result of a four-year project between DairyNZ and NIWA, with input from many other organisations, including regional councils and Fish and Game NZ.

NIWA’s principal scientist - aquatic pollution, Dr Chris Tanner says the guidelines are designed for practitioners, but also provide evidence for farmers and councils of wetland effectiveness in removing contaminants.

“The estimates are based on over 20 years of New Zealand study and international field-scale monitoring and modelling studies.

“Estimates were then refined, tested and endorsed by a technical advisory group supporting the project.”

Burger says farmers who are interested in constructing wetlands can contact an environmental consultant to work through the new guidance. Farmers should also seek regional council advice on consents and any assistance available.

DAIRY NEWS JUNE 14, 2022

20 // OPINION RUMINATING

EDITORIAL

A win for rural – just

MILKING IT...

Sour taste

Change of heart

HATS OFF to the agriculture industry for some consensus on the He Waka Eke Noa report released last week.

Not every farmer will agree with the farmbased split-gas levy but the industry is putting a strong case to the Government to keep agriculture out of its Emissions Trading Scheme.

While the sector has been praised by most stakeholders, including the Agriculture Minister, one committed anti-dairy outfit remains unconvinced.

The lobby has dubbed HWEN’s proposal as a lemon that will fail to cut emissions.

It seems the consensus among industry stakeholders that selfregulation is the way to go rather than being in ETS has left a bitter taste in Greenpeace mouths.

AUSTRALIA’S NEW Labour Government has recorded its first backdown, just two weeks into office.

After speaking out against livestock exports while in opposition, Prime Minister Anthony Albanese has revealed Labor will not ban the live sheep trade in this term of government.

Weeks before the federal election, Labor confirmed its plan to end Australia’s A$92 million live sheep trade.

Now Albanese is quoted by ABC Rural as saying that “no one was envisaging a phase-out in this term of government”.

“We recognise that the farmers who might be listening to your program work hard and they need to be respected.”

Calm cows deliver

Baby formula bounce back

DO CALM cows produce more milk?

A recent “personality test” for cows by AgResearch and DairyNZ may have the answer.

The study, Toward on-farm measurement of personality traits and their relationships to behaviour and productivity of grazing dairy cattle, was published in the Journal of Dairy Science.

There was growing evidence that a farm animal’s personality was linked to its productivity, researchers said.

The study found that calmer and more curious cows grazed for longer and researchers concluded this probably contributed to more milk production.

Based on their findings, researchers could suggest which personality test would be the most practical on-farm and this allowed farmers to make tailored plans for managing individual cows.

THE US infant formula crisis may be coming to an end.

The baby formula sector suffered a double whammy: supply chain problems have affected all manner of goods since the onset of the pandemic, then in February 2022 the U.S. Food and Drug Association shut down Abbott Nutrition’s factory in Michigan over health concerns.

But three things are helping the US recover: the domestic production of baby formula has improved; imported formulas – part of the Biden Administration’s Operation Fly Formula mission – have helped supplement the domestic brands; and lastly, there seems to be anecdotal evidence of less hoarding by panicked parents.

Most of the overseas formula was flown in from Europe and NZ manufacturers.

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THE LAST minute decision by Health Minister Andrew Little to give the rural community some status in the new health reforms bill – Pae Ora Health Futures, is a victory, but there never should have been a fight over this.

The Pae Ora Health Futures Bill, which takes effect on July 1, is hugely significant. It is the first major reform for nearly two decades and the goal is to try and fix some of the enormous problems the sector is facing. Rural communities are seen as the poor cousin to urban people in terms of health services, facilities and the lack of access due to their isolation. Urban people have these on their doorstep, but even they endure long waiting lists for ‘elective surgery’.

The bill was based on a series of reports, most notably one by Heather Simpson who was Helen Clark’s formidable former chief of staff. It was Simpson who recommended that the rural community should have legal status in the bill along with Māori, Pacifica, women and people with disabilities. But in the debate in the select committee reviewing the legislation – the committee dominated by Labour and Green MPs – a bizarre decision was made to strike out ‘rural’.

This rightly drew immediate outrage from the Rural GP’s Network with their chair, Dr Fiona Bolden, calling it outrageous and saying it left nearly a million rural people out in the wilderness. National’s Dr Shane Reiti and Act’s Brook van Velden added their voices to the outcry and outrage over the select committee decision.

The reasons why the committee made such a decision is puzzling although there are several theories which are best left unsaid.

In the end, and to his credit, Andrew Little read the political landscape much better than his colleagues in the select committee and reinserted ‘rural’ into the bill. That there was a debate on this issue reflects badly on Labour and reinforces the view that rural is a low priority for them. It shows that some people in the Labour caucus don’t understand what is happening outside Wellington and are fixated on urban social issues.

This is a victory for rural NZ and a terrible outcome has been avoided by a senior politician finally seeing reason – albeit at the last minute.

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DAIRY NEWS JUNE 14, 2022

OPINION // 21

An opportunity to connect!

The 2021 NZ Dairy Industry Awards (NZDIA) Farm Manager of the Year Christopher Vila spoke at the 2022 awards night held recently in Christchurch. Here’s his speech…

IT’S SUCH an honour to be back, here on this stage. And be given a moment to share with you the amazing experience and journey I’ve had in the past year, since being chosen as the NZDIA National 2021 Farm Manager of the Year.

knowledge and knowhow. I fully appreciate the support I got from my set of judges from last year.

The guidance and morale that I received have spurred me on and pointed me to the right direction as I take the steps to attain my goal.

Each day that we show up and choose our mind-set and consciously strive towards being industrious, motivated, passionate and forwardthinking individuals, we win.

Instead of detailing to you an account of each and every activity I’ve done, I would rather share with you the things I’ve discovered, enjoyed, and look forward to. My NZDIA experience has taught me the importance of “connecting”: ■ to one’s self, knowing who you are, having the confidence that we all have a “masterpiece” inside of us waiting to be uncovered, and striving to bring out the best version of us and utilising that for a higher purpose; ■ sharing and being of service to others.

I enjoyed and relished every activity, assignment, participation, or job that came along with winning the title.

Not because of the fame – certainly no fortune or piles of gold – but because I felt deep within myself that this is my opportunity: to connect with others, to influence people in a positive way, and to give value to others.

I feel an overwhelming satisfaction to know that I can focus and give my best in what I do, put myself out there, and in the process grow while fulfilling my higher purpose.

I would like to take the time to acknowledge the judges who have given their valuable time, effort and their technical

To the organisers and all regional committees who toiled with enthusiasm ceaselessly behind the scenes and to all the national and regional sponsors who continue to believe in the advocacy of this program – a big thank you!

To my family who encouraged me to come to New Zealand and start a career in the dairy industry, thank you for inspiring me and motivating me to reach for a brighter future.

I hope that the New Zealand Dairy Industry Awards continues to provide opportunities and acknowledgement to industrious and enterprising migrants, like me, who take part in contributing to the industry’s success.

Each day that we show up and choose our mindset and consciously strive towards being industrious, motivated, passionate and forward-thinking individuals, we win.

And each individual win adds up and has an exponential contribution to a world-class winning dairy Industry.

Each day presents a new challenge. Each day also presents a new opportunity to learn, grow, and rise-up.

And in the midst of chaos, uncertainty and unrest that is happening all around us, it would do everyone some good to

be kinder and to pause, appreciate, and celebrate the triumphs and

positivity around us. @dairy_news facebook.com/dairynews

2021 NZ Dairy Industry Awards Farm Manager of the Year Christopher Vila says the industry has allowed migrants like him to start a career.

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DAIRY NEWS JUNE 14, 2022

22 // MANAGEMENT

Grow another paddock FARMING IS becom-

ing increasingly complex.

Until recently, farmers had relatively few issues to focus on: feeding cows, producing milk and hopefully making enough money to feed their family and pay off their mortgages.

Things are very different now. The historical issues remain but added to these are increased compliance requirements, regular staff shortages, more demands from milk and meat processors, climate change and of course, global supply chain issues brought about by war and pandemics.

This increased complexity results in increased risk. Until this season, payout has been relatively stable, sitting between $6.12 and $7.54/ kgMS.

The biggest business risk has been around the variable climate and trying to produce enough milk to generate good profit.

With the lure of a record payout and the hope of healthy profits, this season has been incredibly frustrating for many farmers.

The excitement of generating big profits due to the record payout has been somewhat dampened by a cold wet spring in some areas, an extended dry period in

It is times like these that the extra stack of silage or the extra paddock of maize silage prove to be very valuable.

others and rising input costs across the whole industry.

It is times like these that the extra stack of silage or the extra paddock of maize silage

prove to be very valuable.

Stored forages like silage and drought tolerant crops like maize are great risk management tools.

The advantage of an extra stack of silage is that is

available for seasons like this, when it can be used to keep cows in milk and take advantage of a great payout. And if it’s not needed, it can be left in the stack for when it is

needed. The advantage of growing a paddock of maize silage during these periods of summer dry is that as a drought tolerant, warm loving plant, maize will produce up to three

times more dry matter per hectare than pasture.

To save cost even further, consider growing maize silage grown on an effluent paddock. It is unlikely to need any fertiliser, and the maize is extremely good at mopping up excess nitrogen and potash, reducing risk to both animals and the environment. Yields also tend to be higher on effluent paddocks. As a result, maize silage grown and harvested from effluent paddocks is a cheap source of drymatter, ranging between 13-17c/kgDM depending on the yield.

There is no other stored feed on the market that comes anywhere near maize silage at this price.

• Ian Williams is a Pioneer forage specialist. Contact him at iwilliams@genetic. co.nz @dairy_news facebook.com/dairynews

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DAIRY NEWS JUNE 14, 2022

MANAGEMENT // 23

Smart ways to lower working hours on dairy farms SEONAID AITCHISON

WITH MILKINGS typ-

ically taking around 17 to 24 hours a week per worker, many farmers have been focusing on milking smarter to reduce hours and creative ways to shorten the working week – like the 22% who report they are using flexible milking.

One of the main reasons for a shift to flexible milking is to reduce hours, make rosters more flexible and improve work/ life balance for their team.

For Taranaki farmers Daryl and Karyn Johnson, using 3 in 2 milking has seen their team’s working week shortened by six hours each per week. Many farmers are

One of the main reasons for a shift to flexible milking is to reduce hours, make rosters more flexible and improve work/ life balance for their team. Inset: Seonaid Aitchison, DairyNZ.

also having success with a 10 in 7 milking schedule that maintains traditional morning and afternoon milking times

but frees up a few afternoons each week.

Milking smarter has seen some operations introducing a maximum

milking time (MaxT), which can reduce milking times without compromising production or udder health. Interest-

ingly, leaving some milk behind in slow milking cows can increase the flow rate in the next milking, improving milk-

ing efficiency.

Fonterra suppliers recently received Insights reports showing their milking efficiency compared to similar operations, and how much time they could save by reaching 80-100% milking efficiency. The average possible saving at peak was 8 hours per week.

Align Farms in MidCanterbury allow their team to pick shifts, with the first pick rotating between staff, usually with the most popular shifts being morning and midday, leaving afternoons free.

Flexible rostering means the team control

their working week, allowing them to pick shifts around other commitments and hobbies, while also allowing Align Farms to take on people looking for work opportunities, including part-time positions. They describe these workers as some of the smartest people, and the farm benefits from having a diverse and interesting workplace.

Reducing the hours your people work to 50 hours or less a week reduces stress, fatigue, and the risk of accidents, and helps you attract and keep good employees.

For more information visit www.dairynz.co.nz/ milking • Seonaid Aitchison is DairyNZ solutions and development specialist

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DAIRY NEWS JUNE 14, 2022

24 // MANAGEMENT

Knowing your colostrum powder NATALIE CHRYSTAL

PROVIDING A newborn

calf with colostrum within 12 hours of birth is vital, we know that. And if maternal colostrum

is unavailable or poor quality, a colostrum replacer can provide an essential alternative.

So, how do you go about selecting the right product?

Price is always a factor

but remember that a product selected on price may not give a newborn calf the start it needs.

Consider these points when selecting a colostrum powder: ■ Is it a colostrum

Price is always a factor but remember that a product selected on price may not give a newborn calf the start it needs.

replacer or a colostrum supplement?

Although very similar, it’s important to note the difference between a colostrum replacer and a colostrum supplement.

A colostrum replacer

Products listed as “whole colostrum” are just that; made from colostrum collected from dairy cows. The colostrum must be heat-treated (pasteurised) to eliminate any potential diseasecausing agents.

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is designed to completely replace the first feeding of colostrum – most often when high-quality colostrum is not available.

A feed of colostrum replacer will provide at least 100g of Immunoglobulin G (IgG) which is essential for achieving passive transfer in a 40kg calf.

A colostrum supplement, on the other hand, is designed to be fed in conjunction with maternal colostrum. On its own, a colostrum supplement cannot replace high quality colostrum.

Depending on your requirements, both options provide different benefits. However, a colostrum replacer is more cost-effective; it can be used as the sole source of colostrum or to enrich maternal colostrum.

■ Have the vital immunoglobulins been protected during pasteurisation?

Products listed as “whole colostrum” are just that; made from colostrum collected from dairy cows. The colostrum must be heat-treated (pasteurised) to eliminate any potential disease-causing agents, such as Johne’s disease or M. bovis.

Heat treatment is key here. Where standard pasteurisation involves high temperatures which can reduce IgG content and damage growth factors, whole colostrum is pasteurised through carefully timed heating and cooling cycles with regular testing to preserve the natural ratio of all ingredients, keeping key colostral components intact.

It’s not only about IgG Whole colostrum products provide a valuable source of nutrients, in particular fat – which provides a highly digestible and readily available source of energy for the young ruminant.

These products also contain non-nutritive (growth) factors which support early growth and gut development as well as the establishment of the microbial population in the gut.

A whole colostrum replacer is high fat and high in IgG while many colostrum powders sacrifice fat for a high IgG content, or vice-versa.

The reason for this is that in some processes, they ‘de-fat’ the product to increase the IgG concentration.

In taking out the fats, an important energy source for the newborn is gone.

Other products are ultra-filtrated to achieve higher IgG concentration.

While this helps to ensure a high intake of IgG, the ultra-filtration process can remove many of the important hormones and other growth factors usually found in colostrum.

In the case of low IgG products (with high fat content), you must feed considerably more colostrum to achieve passive transfer of immunity (100g IgG/calf).

When it comes to colostrum replacers, your decision is an important one - you only get one chance to start an animal off well.

Article supplied by AgriVantage ■

DAIRY NEWS JUNE 14, 2022

Make sure your feed is FeedSafe NZ accredited

ANIMAL HEALTH // 25

Uni farm’s variable mixing plan deliver mixed results

Do you know if your f Find out at the

NZFMA Fielda

NIGEL MALTHUS

THE FIRST full season

of ten-in-seven variable milking on the Lincoln University Dairy Farm (LUDF) started well but the “then wheels fell off,” the farm administrator, Jeremy Savage, revealed at the recent farm focus day.

Under the new regime, that our cows stop getting in calf and our empty rate the farm milked twice a day, three days a week but starts going off on a tangent.” only once a day for the Benchmarking against rest. the Rakaia farm of Liam Variable milking is Kelly, a member of the expected to break-even financially, small losses in LUDF management advisory group, showed the production being offset by various gains including farms were very similar in most respects but Kelly energy and labour costs.

But it also expected to achieved empty rates of only 10%. bring significant gains in They were now reachstaff and herd welfare. ing out to South Island At the spring update Dairy Development in October, Savage had said the regime was going Centre (SIDDC) partners for support and funding surprisingly well and he for an intensive testing believed it was also helpprogramme comparing ing with reproductive the two farms “just to try performance and getting and drill into what’s going cows back in calf. on for that week four to However, the season’s six mating,” he said. in-calf rate was on target They hoped to test at three weeks, but fell such factors as nutriaway to about 68% at six tional parameters of the weeks. pastures, neospora levels “We were hoping in the herds, and blood this 10-in-7 was going to ketones to assess the help us out and get us a cows’ energy balance. bit higher than that and “This isn’t just unique improve our in-calf rate,” to LUDF and that’s why said farm manager Peter we’re keen to do it.

Hancox.

“The empty rate for “We ended up at 21% Canterbury last year was empty. It’s probably the the same as New Zealandhighest we’ve ever had. wide, which was 16.3% We don’t know why.” and that’s the average.”

Savage said it was Savage, a consultant about the 15th or 18th with Macfarlane Rural year running that the Business, Ashburton, said farm has recorded a high empty rate and they were that about 20 to 25 of “scratching our heads” to their client dairy farms had gone to a variable work out the cause. milking regime and they “It’s consistently about Do you know if your feed is FeedSafe accredited? were evenly split between Findof outNovember at the NZFMA Fieldays stand the sixth feedsafe-15x11.pdf

1

20/04/21

5:09 PM

LUDF administrator Jeremy Savage and manager Peter Hancox speak at the farm’s recent Autumn Focus Day.

those who’ve “nailed it” and those who’ve struggled.

Many started the season on twice a day then changed over to 10 in 7. On some farms it was pretty obvious when they made the change because of a 5% to 10% drop in production, but on others he couldn’t spot it just from the production figures.

Savage said the key was keeping the feeding regime and feed management the same.

“Where it goes wrong is when people try to work out and allocate feed based on nine or eighteen hours or 11 hours, or 12 hours or five hours, and they try and work out how much grass that cow’s going to need for the break.

“The problem is that your feeding regime and profile changes during the day based on the time of the day, so if you’re trying to do that, the odds are you’re going to muck it up.”

Hancox said LUDF would definitely continue with 10 in 7 next season and try to sort out the problems.

“I’m pretty gutted this season, to be honest. I thought we’re going to get some benefits with the 10 in 7 around cow condition, lameness and in-calf

NZFMA Fieldays stand number AG 7C

Do you know if your feed is FeedSafe NZ accredited?

rate, but we haven’t ticked any of those boxes really at this stage.

“The people side of it has definitely been ticked, but the others haven’t.”

Savage added that the farm had been “checking a lot of those boxes” around low cell count, low lameness, and cow condition but “the wheels

Resting cows on the LUDF farm during a hot summer day.

fell off” around midNovember.

Meanwhile, another setback for LUDF is the return of Johnes, which Hancox blamed on having to bring young cows into the herd, to make up for a high empty rate when using only AI at the height

of the M. bovis epidemic.

The farm now has a number of Johnes-positive cows, but this season’s empty rate means they can’t afford to cull them all.

A couple were “definitely light” and won’t make it to next season

but the farm will hang onto most of them, said Hancox.

“We will obviously identify them at calving.

They’ll be separated and we’ll just make sure we don’t feed their milk anywhere close to the heifer calves.”

DAIRY NEWS JUNE 14, 2022

26 // ANIMAL HEALTH

Benchmark in teat spraying AUTOMATIC TEAT

spraying is no longer just about labour savings, says dairy automation company GEA. The company claims

its new on-platform teat sprayer, the iSPRAY4, offers unrivalled teat care.

Already, the system has proven to reduce somatic cell count (SCC) and

improve teat condition, it says.

Taranaki dairy farmer Andrew Pritchard says the iSPRAY4 is a gamechanger. Eighteen months

ago he installed a 50-bail iFlow Rotary Platform, a one-person operation milking 460 cows.

Initially, he was working with the old model

GEA claims its new automatc teat spraying system helps reduce somatic cell count and improve teat condition.

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2-nozzle iPUD automatic teat sprayers.

“I was never happy with coverage (of the teats), the leg spreading ability or hygiene – it was hard to keep clean.

“The new 4-nozzle (iSPRAY4) has been an exceptionally good change.

“The design makes it easy to cup, with the cups hanging better. The leg spreader caters for big and small cows, and there’s a bigger range of coverage with the 4 nozzles.

“Our cell count has dropped since the day it was installed and teat condition is the best it has ever been.”

The farm’s SCC season average has gone from 150,000 to 90,000.

According to GEA Product Manager Ben Morris, the new iSPRAY4 sees the iPUD redesigned to target full barrel coverage.

“Installing the iSPRAY4 will see farmers taking a big step forward in terms of teat-spraying accuracy and better efficiency in the milking process,” says Morris.

Designed with 8 nozzles, the iSPRAY4 offers 4 post-spray nozzles which apply teat spray using crossfire technology for full coverage.

Although not yet adopted in New Zealand, there are also 4 pre-spray teat nozzles in each unit.

The leg separating capacity results in great cluster alignment.

A deep groove through the centre ensures the cluster and milk tubes hang freely for an unobstructed milking routine for all cows, while the units are much easier to clean-down.

GEA says combining this system with its FIL Intelliblend creates further labour savings and better consistency, automating the mixing of teat spray concentrates and delivering programmed ratios to the spray units.

Pritchard says with Intelliblend added, we don’t have to do anything.

“From concentrate to spraying, it’s all taken care of. It provides consistency and reliability,” he says.

GEA says the iSPRAY4 (and Intelliblend) is a simple to install ‘plugand-play’ solution for any rotary platform.

Because the system has proven to perform best with FIL teat spray products, GEA is offering to extend the standard 1-year warranty to a 3-year warranty for any farmers who purchase the units with a 3-year FIL teat spray supply commitment.

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■ AND MUCH MORE...

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DAIRY NEWS JUNE 14, 2022

MACHINERY & PRODUCTS // 27

Pasture mowing, topping help lift farm’s bottom line At the heart of each machine, a 4-spindle layout and screw adjusted side skids offer adjustable cutting heights from 20 to 160mm, with typical outputs of 1.39 and 1.64 ha/ hour at a typical 6km/h forward speed.

The four-rotor layout, combined with high spindle speeds, delivers a greater number of cuts per metre travelled, resulting in a finer cut and neater finish. This is also helped by the fitment of the company’s Lazerbladez, manufactured from heavy-duty spring steel and featuring a fling tip that is easier to fit and less expensive to maintain than typical full-

MARK DANIEL markd@ruralnews.co.nz

MOWING OR topping dairy grazing pastures can improve pasture quality and increase cows’ productivity by simplifying pasture management, speed up regrowth for a consistent supply, allow increased stocking rates and reduce the reliance on bought-in feeds.

With all these facets likely to prove advantageous to a farm’s bottom line, it’s obviously important to choose a machine that’s up to the job.

Trimax Mowing Systems is a New Zealand company that designs, manufactures, and distributes premium commercial mowing equipment around the world.

Founded in the Bay of Plenty in 1981, the company recently celebrated 40 years of business at its headquarters in Tauranga.

Trimax suggests machine choice should be governed by the cleanliness of cut across the leaf, the dispersal of clippings and the ability to travel without scalping.

They also say it is sensible to look at a wide range of cutting heights, allowing mowing and topping, ease of maintenance and good aftermarket support for parts and operational support.

Their topping solution,

Trimax suggests machine choice should be governed by the cleanliness of cut across the leaf, the dispersal of clippings and ability to travel without scalping.

STANDARD FEEDER (C6 Pinned) • 1 x 6 foot bale • 2m diameter • 15 feed positions • 15 - 30 animals

The Trimax Topper, was developed on a Waikato dairy farm in 1993 and has become a mainstay for many operators.

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width designs. They are also tilted forwards at an optimal angle to ensure better grass lift and rearward discharge.

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DAIRY NEWS JUNE 14, 2022

28 // MACHINERY & PRODUCTS

Kubota earnings boosted by farming, construction MARK DANIEL markd@ruralnews.co.nz

JAPANESE COMPANY Kubota

Corporation has reported that a solid performance by its farm and construction machinery divisions in both domestic and export markets was largely responsible for the 18.5% increase in revenue last year to ¥2,196.8b (US$19b) during 2021.

Nearly 85% (¥1,864.8b/ US$16.1b) was generated by tractors, farm equipment brands including Kverneland and Great Plains, which alongside engines was up 23.6% on 2020.

Revenue at home in Japan increased by 1.3% from the previous year to ¥602.8b (US$5.2b), while ag and construction machinery export revenue increased 27.8% to ¥1,554.3b (US$13.4b).

Export sales were driven by the strong demand for tractors and

construction machinery in North America, Europe and Australia, while farm equipment sales were strong in India.

While the domestic farm and construction machinery market is expected to remain static during 2022, exports are forecast to increase with continued solid demand in North America and Europe, likely to drive a further increase in consolidated revenue for 2022 to ¥2,450.0b (around US$21b).

In other Kubota news, the manufacturer plans to launch the world’s first hydrogen-powered fuel cell tractor in 2025, initially for the European and American markets. Reports suggest that progress is well advanced in developing tractors ranging from 50 to 100 horsepower, with a prototype ready by 2023. Prices are expected to be around 40% higher than current diesel-powered alternatives.

Kubota’s farm machinery sales soared in the past year.

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DAIRY NEWS JUNE 14, 2022

MACHINERY & PRODUCTS // 29

Innovation boosts cow comfort MARK DANIEL markd@ruralnews.co.nz

KEEPING COWS off pasture during the winter months can be a challenge for some Kiwi farms.

The challenge looks to have been met, thanks to new barn surfacing/matting that should help protect paddocks as well as delivering exceptional cow comfort.

Fresh thinking and new products from Numat are helping farmers effectively innovate their operations and increase animal safety without compromising everyday efficiency and productivity.

Delivered by the Oamaru-based company Numat Agri, continuous research and development has delivered several agricultural surfacing products over the years, resulting in the recent introduction of Siesta mat, a durable but markedly softer and comfier matting ideal for New Zealand’s standoff pads.

Numat director Mike Judd says nothing stands still in this business for long but, “if we do our job right, the cows will stand still and rest comfortably”.

Siesta is said to differ from existing products due to the innovative waffle pattern underneath, which provides superior air-cushioned comfort for cows while also being warm and hooffriendly.

“The cushioning factor is huge,” says Judd.

“Farmers want to see cows arrive on the matting and quickly make themselves comfortable, lying down and resting quickly. And, as everyone knows, relaxed cows are happy, productive cows.”

The company notes that many mats on the market feature hard, unyielding rubber edges.

This tends to make them hard and uncomfortable for the cow to lie down on.

The Siesta mat is structured uniformly and is comfortable evenly across its whole surface.

Other key features include a new surface profile, said to provide more grip compared with other options, leading to reduced slips, injuries and hassles.

Having recently purchased Siesta, Bradley Cook of Milk It Farms in Southland says, “We have dealt with Numat Agri in the past and their service is second to none, so when they showed us the new Siesta matting it was a relatively easy choice for one of our units. We’ll certainly put it to the test, as we’ll use it for a feed pad and stand-off area for 400 cows and as a finishing area for around 70 Wagyu beef cattle.”

Looking at the mats in more detail, original material is imported from Germany, before being custom cut at the Oamaru factory using precision water jets to ensure tighter interlocks between adjoining mats. The overall profile of the mat, at 16mm thick at its thinnest point, is said to be around 60% thicker than competitive products, leading to increased cow comfort, while also making it suitable for mechanical scraping and flood washing.

While some brands of matting are laid loose over the loafing area, Siesta is recess anchored, meaning users can drive heavy vehicles over the matting without worrying about movement or damage, while a ten-year

warranty also provides peace of mind.

“Cow comfort is front of mind for many farmers and their animals’ health starts at ground level,” says Judd.

“Knowing how impor-

tant it is to our customers makes us all here (at Numat) passionate about what we can do, but at the heart of Siesta’s success is the level of rest and relaxation it delivers to cows.”

Siesta mat is a durable but markedly softer and comfier matting ideal for New Zealand’s standoff pads.

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DAIRY NEWS JUNE 14, 2022

30 // EFFLUENT & WATER

Water quality – a long-term plan to turn big ship around SUDESH KISSUN sudeshk@ruralnews.co.nz

ENVIRONMENT CANTERBURY is reject-

ing Greenpeace’s latest claims on nitrate leaching impacting the region’s water supply.

EC says it has always acknowledged the extent of the water quality challenge in its waterways.

Science director Dr Tim Davie says it is Environment Canterbury science that has recognised the scale of the problem, which has led to significant investment from the regional council and the community to improve the situation.

He says there’s no simple, quick fix solution.

“We have called on a vast range of scientific expertise to help us navigate the issue. All this work has been captured in the Canterbury Land and Water Regional Plan to which the whole community has contributed and is continuing to implement.

“This is a long-term plan that is gradually turning a very large ship around,” Dr Davie said.

Greenpeace claims

Environment Canterbury says it has always acknowledged the extent of the water quality challenge in its waterways. Inset: EC Science director Dr Tim Davie.

that research conducted by dairy industry critic Dr Mike Joy found that up to 96% reductions of nutrient leaching are needed to reduce elevated groundwater nitrate concentrations.

“Unless this environmental degradation is reversed and current dairy farming significantly reduced and/or replaced by low-nitrate emission non-pasture grazed systems, dairy farming on

the Canterbury Plains will remain unsustainable and seriously damaging to the local freshwater environment, including local drinking water sources,” the research claims.

“This degradation could continue to pose a significant human health risk and threat to our global market for dairy products.”

But Davie says it is ironic that the latest Greenpeace salvo against

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the Canterbury community stems from a research paper that relies heavily on Environment Canterbury scientific publications for its technical analysis.

“Those Environment Canterbury publications clearly point to the scale of the water-quality problem and the amount of remediation required.”

EC chief executive Dr Stefanie Rixecker said $60 million in ratepayer

money had been invested over the last decade in a framework to improve water quality throughout Canterbury.

“Limits on the amount of nitrogen farms can leach have been in place since 2012,” Rixecker says.

“With the input of our water zone committees and local communities, these limits have been tightened further in particular catchments – for example, a

30% reduction in nitrogen losses from dairy farms in Selwyn Te Waihora by 2022.

“Farmers are required to work to industryagreed good management practices and to have auditable farm environment plans. We work closely with the rural community and carried out a successful land use consent to farm campaign to ensure farmers understand and can implement

these requirements.

“As well as regulatory measures, there are many non-regulatory actions that farmers are taking to make a difference to the environment such as stock management, precision irrigation, riparian planting, and restoration of wetlands.

“We often hear that nothing is being done.

This is insulting to the many people in our communities, farmers and others, who are working hard to improve things,” Rixecker said.

EC chair Jenny Hughey says that over the last three years council had successfully built on the water quality improvement platform.

“We are working with farmers to help them understand and adhere to the rules in our own plans as well as the regulations in the Government’s Essential Freshwater package,” she said.

“Farmers who are actively working to reduce nutrient losses will be well positioned as we move towards implementing Te Mana o te Wai through an integrated plan for Canterbury.”

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DAIRY NEWS JUNE 14, 2022

EFFLUENT & WATER // 31

Feds give cautious approval to water services working group report Feds agrees with the report’s recommendation that rural service users should generally not be subsidising urban service users.

Also, that consultation with rural users on the water entities’ funding should start before the new entities ‘go live’ and before domestic volumetric pricing is introduced to new areas.

The recommendation that new water quality regulator Taumata Arowai should provide costeffective ways for schemes to comply that recognises their uniqueness, offers options to not chlorinate

FEDERATED FARMERS is giving the thumbs

up to a report released this month by the Rural Supplies Technical Working Group on water services.

Federated Farmers president Andrew Hoggard sees positives in the report, in particular, rejection of inflexible ‘one size fits all’ approaches to rural supplies.

“Many of the findings raised by the group look sound,” he says. “The report appears to be a tiny sliver of common sense in amongst a pile of water policy decision-making we are struggling to explain to our members.”

The technical working group chaired by Clutha Mayor Bryan Cadogan has recommended all councilowned mixed-use rural supplies should transfer to the new water services entities because they will

Federated Farmers continues to analyse and submit on the vast array of other regulatory changes proposed in the water management area.

have the people, resources and expertise to operate these schemes into the future.

However, Federated Farmers still has major concerns about the set-up of the ‘four entities’

themselves.

“But we like the recommendation that there should be the option for the rural community to take back water assets with shared ownership or maintenance agreements,”

Hoggard says.

“It would depend on capacity, finances and capability, the predominant use of the scheme and other factors.

But the community should decide.”

RURAL DRINKING WATER SCHEMES CRITICAL THE RURAL Supplies Technical Working Group (RSTWG) has made 30 recommendations in a recent report to Department of Internal Affairs (DIA), including that the country’s 100 or so council-owned rural water supply schemes be transferred into the four new co-governed water entities.

It adds that tens of thousands of privately-owned rural water supply schemes are not included in Three Waters reforms.

RSTWG chair and Clutha District mayor Bryan Cadogan says rural drinking water schemes are critical to the health and livelihood of rural communities, and each scheme is unique.

“We recognise that rural drinking water schemes often provide water for farming as well as for people to drink.

There are distinct differences between rural and urban water – and it’s not one size fits all.”

Cadogan claims his group has listened carefully to the concerns of rural communities.

“The RSTWG agrees that, in general, council-owned rural drinking water schemes should transfer to the new water service entities,” he says.

“But we also recommend that there should be a pathway for some council-owned rural supplies to revert to ownership

by their users. This would apply to schemes that are critical to farming and whose users have the capability and resources to operate them without support from councils or water services entities.”

Meanwhile, in terms of the privately-owned rural drinking water schemes, which are not captured by reform and so do not shift to water service entities, Cadogan says for most it will be several years before they need to register as a supplier with drinking water regulator Taumata Arowai and “demonstrate compliance with it requirements to provide safe drinking water”.

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WATERMETRICS APPOINTMENT WATER DATA service provider Watermetrics has appointed Lee Hart as its sales engineer for lower Southland.

Watermetrics says it has significant clientele in the Southern Regions and Hart’s appointment recognises improved technology and increasing demand for water and irrigation management tools.

Hart has worked in water automation and instrumentation and also has over 10 years experience in pump sale and flow meter installation and verification.

The company says Hart understands irrigation and efficient

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Hart will be responsible for liaising with cli- Lee Hart ents, sales and servicing in Central Otago and Southland area.

Watermetrics says water use and storage has to be monitored for compliance purposes and increasingly to prove efficiency for Farm Environment Plans (FEP). Watermetrics supplies, installs and ser-

vices all related equipment.

The collection of data from this equipment and its presentation for easy management decisions ensures the best use of water.

An example is combining rainfall and irrigation in graphical displays to show the effect on soil moisture.

Such displays provide accuracy in soil moisture management and it’s clear every situation has different responses.

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in certain drinking water supply situations, and closely involves rural stakeholders in designing and implementing regulatory requirements, are “spot on” Hoggard says.

Federated Farmers continues to analyse and submit on the vast array of other regulatory changes proposed in the water management area.

“Sadly this is just a small piece in the much larger puzzle we are trying to put together properly for our members right now,” he says. @dairy_news facebook.com/dairynews

DAIRY NEWS JUNE 14, 2022

32 // EFFLUENT & WATER

Max spec makes the most of effluent MARK DANIEL markd@ruralnews.co.nz

WITH EFFLUENT

becoming a more important part of farm management, particularly for its value as an alternative to bagged fertiliser, it is timely for the Power Farming Group to be introducing the Fliegl range of tankers.

Offering a range of sizes up to 27,500 litres, the German-built machines also offer tandem and triple-axle layouts in the Maxx Line Plus and Alpha Line models. Maxx Line Plus is equipped with tandem axles and available in 12,000, 14,000, 16,000, 18,000 and 20,000 litre capacities, while the triple axle Alpha Line is offered with 23,000, 25,000 and 27,500 litre sizes, meaning that the two ranges can be towed with tractors from 100 to 250hp.

As the tankers are expected to carry large weights, suspension systems are an important consideration, so 12,000

Final application is taken care of by dribble bar, trailing shoe or disc injection set ups.

and 14,000 litre Maxx Line Plus units are fitted with Fliegl’s Giant assembly, utilising springs and HD bearings to offer individual wheel guidance.

The Giant Plus format, used on 16,000 to 20,000 litre machines, is maintenance-free, using rubber mounts and designed specifically for high axle loadings, using trailing arms for high speed and cornering stability.

On larger tankers of 23,000 litres and above, the Jumbo Giant Plus assembly features para-

bolic springs that help lower the centre of gravity by around 20cm, making them particularly suitable for hilly areas. As an option, customers can specify air or hydraulic suspension that allows lift axles and helps reduce ground compaction.

Standard tyre equipment on the Maxx Plus Range is 750-60R 30.5 profile, each rated to 6,740kg capacity at 40km/h and are also recommended as an upgrade for the Alpha Line Series.

Likewise, forced steering

upgrades help manoeuvrability, particularly when reversing, and help to reduce tyre wear. At the heart of the system,

K50 ball joints are connected to link arms situated on each side of the drawbar and connected to the tractors hydraulic system. The pressurised system forces the oil displaced to turn the steering axles in opposing directions, meaning the machine track closely follows that of the tractor.

At the rear of the machine there is a move away from traditional splash-plate designs to placing effluent directly on or in the ground, helping to reduce nitrogen losses and odour. All ground distribution systems start with a unique screw type delivery manifold that serves to remove

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foreign objects into traps at the end of the distribution trough, with benefits said to be reduced wear compared to bladed macerators and a uniform flow of material to the outlets.

Final application is taken care of by dribble bar, trailing shoe or disc injection set ups.

The former is available in operating widths from 6 to 18m, with 24 to 72 outlets respectively. The units fold to a compact 2.6m for transport and offer slope compensation and over-pressure functions.

The Skate trailing shoe configuration features spring loaded injection

shoes with an 8kg blade pressure, mechanical or hydraulic section control and an outlet spacing of 250mm. Offered in working widths of 9 to 21m, with 36 to 84 outlets, booms fold to less than 3 metres for transport.

The Vario Disc injection system is said to be capable of placing effluent between 5 and 10cm below ground level, using 530mm diameter angled discs spaced at 25mm across operating widths of 3 to 7.5m with 11 to 28 discs respectively. A range of options includes foam separators, suction nozzles with docking stations, turbo fillers and discharge accelerators.

The latest nozzle from Numedic could be worth a closer look for farmers.

EFFECTIVE WATER USE AT A time when the rising cost of inputs like fuel, transport and fertiliser are putting increased pressure on profitability, smart farmers are realising that effective use of yard washings, dairy effluent and farmyard manures can play an important role in replacing inorganic fertiliser.

Rotorua-based effluent and water specialists Numedic have built a range of innovative, high quality and reliable solutions for the sector, along the way developing levels of trust only achieved by operating for more than fifty years in the industry.

Numedic pumps are a popular choice amongst farmers and industrial customers, proving reliable, easy to service and well-built.

Planning, operational and service advice is a phone call away.

The latest shore-mounted designs, offered in HS, HT and the progressive-cavity HP versions take away the need for floating platforms. Featuring self-priming and a suction lift to 8m, the range can

deal with solids to 35mm, making them ideal for pumping raw effluent from any ponds.

Clever design and attention to detail during manufacturing results in trouble-free operation, with maintenance costs reduced by around 20%, while servicing is simple, meaning less downtime.

Water has always been, and continues to be a hot topic, so its effective use will become a higher priority over time. Dairy farmers will know that washing down yards and dairy sheds post-milking consumes large volumes of water, so the latest nozzle from Numedic could be worth a closer look.

The Hydrofan nozzle delivers a wide, fan-shaped stream of water which uses high impact to shift dirt and debris and most importantly decrease water usage. Manufactured from stainless steel, the units appear to be made to last, incorporate a swivel at the hose tail, and are available in 32 and 38mm sizes to fit existing pipework. One Central Canterbury operation, milking

850 cows through a 54-bail rotary shed, complemented by a 30m diameter collecting yard with an automated backing gate, gives an idea of what savings can be made.

A four-month trial in conjunction with ECAN indicated that the average daily usage around the shed and collecting yard was around 61,000 litres, using washdown hoses in the milking shed and eight hockey-style nozzles fitted to the backing gate. Switching to Hydrofan nozzles, and reducing the number of nozzles on the backing gate from eight to five improved the cleaning effect without the need for supplementary action, but more importantly, reduced water usage by around 12,000 litres per day, resulting in a saving of 3.2 million litres over a 9-month milking period. Additionally, there was a reduction in electricity costs as the 20% reduction in water use meant less effluent needed be sent to the travelling irrigators. info@numedic.co.nz or 0800-686334

DAIRY NEWS JUNE 14, 2022

EFFLUENT & WATER // 33

Umbilical system provides best transfer of effluent to pasture MARK DANIEL markd@ruralnews.co.nz

MASTEK UMBILICAL

effluent systems provide a cost-effective, efficient method of distributing effluent onto the pasture without the need for permanent pipework that can be capital intensive and locked to specific areas.

Umbilical systems are extremely mobile and flexible, as well as allowing a controlled spread of effluent in the paddocks. Because umbilical systems allow you to spread where and when you need it, distribution can be tailored to suit the operation, as well helping to reduce leaching into waterways, ponds and streams. Umbilical systems also help reduce damage to races and farm tracks caused by heavily laden slurry tankers.

In operation, effluent is pumped from the storage pond to where it’s needed via delivery hoses carried on reels mounted on the front and rear of a tractor, often over distances that can exceed 1km.

At the pond, a stirrer is required to agitate the contents before being pumped through a large, flexible hose to a macerator unit on the tractor. The Mastek SuperCut macerator features a series of blades that can chop slurry with a high fibre content, creating a homogenous liquid that is pumped to the dribble bar distribution through the delivery hose and drib-

The Mastek dribble bar and reeler doesn’t require permanent pipework locked to specific areas of the farm.

pliance strategies being increasingly implemented, the optional SmartSpread Live system automatically records the amount of liquid spread and tractor forward speed. The rate of spread can be adjusted

The integral blades of the macerator are easy-to-change, but customers are reportedly pumping more than 120 million litres through their systems without need for attention.

ble bar.

The integral blades of the macerator are easy-tochange, but customers are reportedly pumping more than 120 million litres through their systems without need for attention. In the paddock, the ‘spreader’ tractor moves across each area towing the umbilical hose, while effluent is distributed through individual hoses

mounted below the dribble bar.

Offering spreading capacities of up to 200,000 litres per hour, 1 million litre days are easily achievable; the typical output of a 20,000litre tanker would only be around 60,000 litres an hour.

Additionally, with a fully loaded 16,000litre tanker and tractor

weighing in at around 32 tonnes, compared to a tractor with reelers and dribble bar toping only 12 tonnes, soil compaction is reduced considerably. Also, there will be significantly less damage in gateways as the heavy loads move onto the paddock repeatedly during the day.

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to suit target rates. The system also records spreading date and location, providing proof of placement to regulatory authorities.

Application via dribble bar places effluent directly

on the ground rather than spraying in the air, thus reducing odour and wind drift, and ensuring more efficient uptake of nitrogen.

“Spreading effluent using the Mastek system makes sense,” says Webbline Agriculture’s effluent management expert, Scott Malcolm.

“Rather than effluent being a waste product, it becomes a valuable resource that offers measurable positive results on-farm, in improved pasture, nutrient-rich land for arable cropping and a major reduction in the amount of artificial fertiliser needing to be brought onto the farm.” www.webbline.co.nz @dairy_news facebook.com/dairynews

DAIRY NEWS JUNE 14, 2022

34 // EFFLUENT & WATER

Setting bar high for effluent application MARK DANIEL markd@ruralnews.co.nz

DANISH MANUFACTURER Samson Agro

has introduced its new Samson PGII Genesis Series slurry tanker series to complement the existing PGII series that have been produced and well received since 2013.

Available in two versions, the twin-axle PG1118 and PGII20 Genesis offer capacities of 18 and 20 cubic metres respectively, while the triple-axle PGII28, PGII31 and PGII35 Genesis models deliver capacities of 28, 31 and 35 cubic metres respectively. Final capacities will depend on the options selected for each tanker.

The twin axle models are designed to accommodate low-pressure tyres up

Samson PGII Genesis Series slurry tanker.

to 1.95m in diameter and 800mm wide, while the triples are restricted to tyres up to 1.85m in diameter and 800mm wide.

The configurations are designed to allow optimal distribution of ground

pressure on the soil during slurry application.

Tyre pressures can also be inflated or deflated when driving on differing surfaces, for example from road to field, underlying soil composition or crop

type, using automatic, fast action tyre pressure regulation system.

The Genesis series is also available with the newly developed Samson Hydraulic Power Drive (HPD) or the exist-

ing, well-known Hydraulic Wheel Drive (HWD) wheel drive. Both offer hydraulic power transmission from tractor to tanker to provide traction at one of the tanker’s axles. The drive systems

ensure maximum traction, even in difficult terrain such as hilly or wet ground conditions, and contributes to reduced pressure, wheel slip and driving damage in the field.

In addition to the dynamic driving functions, the company has also improved the tanker’s implement-carrying properties: axle positions and weight distribution have been optimised to allow the selection of injector or boom configurations depending on a given application, without compromising travel or operator comfort.

Application with the Genesis is, like the PGII, controlled with Samson’s SlurryMaster 8000 control unit that, in combination with the tough unloading pump and built-in flow control system, ensures efficient and accurate dosing, and placement of the slurry to benefit the crop, yield and the surrounding environment. @dairy_news facebook.com/dairynews

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REMOTE-CONTROLLED SLURRY HOSE TRAILER UK MANUFACTURER Tram­

spread has launched the first contractor trailer to feature its Teletram GSM remote control system.

Aimed at achieving single operator use via remote control, the design also incorporates a 200mm wider chassis to allow it to carry more equipment.

Cleverly, the control system doesn’t rely on radio connectivity, but instead can connect a mobile device, using its 2G to 5G data connection, for control of one or more engine-driven pumps.

The company says that communication is not compromised by distance and multiple pump units can be controlled by a single device.

This, combined with pressure sensors and a flowmeter, allows the entire umbilical system to be operated and monitored by one person.

The remote control offers a 7” colour screen that can be operated using a mobile device. The configuration also includes Tramspread’s mapping and recording technology that can generate reports that prove placement, area treated, and volume applied.

Power is provided by a 175hp Iveco engine that drives a Bauer SX2000 pump, said to be capable of pumping up to 300m³ an hour, depending on distance and hose diameter.

Elsewhere, up to 2,000m of drag

hose is carried on two galvanised, detachable spools located at the front of the trailer, while an additional 1,000m of hose would typically be carried on the tractor front linkage, delivering a system capacity of 3,000m.

Detail changes see a longer drawbar, allowing an applicator, such as a dribble bar, to be carried on the tractor’s rear linkage while towing the trailer. A 900-litre fuel tank is positioned over the twin sprung axles with a remote-controlled compressor mounted above.

There is also a storage provision for several suction hoses, and a pair of handy toolboxes. www.nevada.co.nz

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