Dairy News 11 June 2024

SYNLAIT WOES MOUNT

Synlait chief executive Grant Watson believes

$130m ‘not enough to stabilise Synlait’

SUDESH KISSUN

sudeshk@ruralnews.co.nz

A $130 MILLION loan from its biggest shareholder won’t be enough to stabilise the struggling milk processor Synlait, according to Forsyth Barr senior analyst equities, Matt Montgomerie.

While the loan is helpful for Synlait in terms of providing evidence behind Bright Dairy’s previous verbal support, Montgomerie says the key stabilisation step for the listed milk processor would be its North Island asset sale or an equity raise.

He told Dairy News that the sale of Synlait’s Pokeno plant and a canning facility is the key driver. An equity raising exercise maybe a step too far for Synlait.

“We think it is unlikely an equity raise will be sufficient to alleviate balance sheet concerns given the depressed share price, 20% shareholder a2 Milk Company’s likely lack of participation, and possible challenges in getting other shareholders to provide more equity.

“That said, we are not ruling out Bright Dairy becoming more active.”

But he warns that the situation remains precarious as operational performance continues to worsen, debt reduction is slower than previously expected and the balance sheet needs a near urgent injection/repair.

“Without a Pokeno asset sale, debt and earnings alleviation, it is

possible Synlait will not reach its covenants in financial year 2025.”

Synlait provided a market update last week, piling more bad news on shareholders and sending its share price to a new low of 39c.

The company is now forecasting that it’s unlikely to meet three of its current banking covenants as at 31 July 2024, the interest coverage ratio, leverage ratio and senior leverage ratio.

“This reflects the timing of Synlait’s deleveraging and further weakening in its financial performance,” it says.

The company has also been unable to find a buyer for its Dairyworks cheese subsidiary and signalled a further drop in operating performance: its earnings before interest, taxes, depreciation, and amortisation (EBITDA) is now expected to be on the lower end of the previous forecast range of $45

million to $60 million.

At the same time, a significant majority of farmer suppliers have issued cessation notices that come into effect in two years.

Montgomerie says the cessation notices from farmers pose a significant risk.

“It definitely implies an acceleration in cessation notices over the past two to three months,” he says.

However, Montgomerie points out that Synlait does have time to prove itself to farmers as the cessation window is two years, thus it shouldn’t have a material impact on the company and its customers performance until financial year 2027.

“The acceleration in cessation notices is hardly surprising, given Fonterra’s (and others’) strong competitive positioning through superior advance rate payments, superior balance sheet, superior dividends,

plus the lure of a capital return in the case of Fonterra and similar milk prices.

“This would only start to have a material financial impact from FY27. It is important to emphasise that it is just a notice at this stage and SML does have time to improve the situation. Once supply exits, it will prove very difficult to get it back.”

Synlait chief executive Grant Watson believes that Synlait presents an excellent value proposition to farmers, “with our best-in-class Lead with Pride programme and attractive speciality milk premiums [being] stand out features”.

“We are pleased to confirm a competitive advance rate profile for the 2024/2025 season, with an opening advance rate of $6/kgMS,” he told Dairy News

“The new profile accelerates the proportion of the full season milk price paid throughout the season.”

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Synlait says it presents an excellent value proposition to farmers, with its best-in-class Lead with Pride programme.

Taking heed of good advice

A TOP farm accountant says in the present downturn, it’s vital that farmers take heed of all the good advice on offer.

Speaking at a SMASH event in Palmerston North recently on farm finances, Pita Alexander says in his experience farmers often don’t listen to people who are trying to help them the most. He says in his years of trouble shooting financial problems on farm, 30% of the farmers who failed to take his advice went to the wall.

He says some farmers won’t listen to farm advisors and bank managers. The latter, he says are highly qualified people who have seen a lot of pain and can give good

advice.

Alexander says when there is a downturn, some farmers ‘turn out the lights’, go into a cave mentality and lose interest and don’t concentrate on running their farms properly, which is absolutely the wrong thing for

them to do.

If they are staring down a loss, he says they must take it on the chin and focus on limiting any loss. And he adds some of the best advice they can get is from their wife or partner.

“Maybe she doesn’t

know all the intricacies of the farm, but she knows the weakness of her husband or partner. Knowing a man’s weaknesses is a hell of an important thing,” he says.

Alexander says partners are worth their weight in gold in a down-

Dairy prices on the rise

DAIRY PRICES have risen for five consecutive Global Dairy Trade (GDT) auctions, which augurs well for this season’s milk price.

Westpac senior economist Michael Gordon notes that gains in powder prices last week were broadly in line with what futures markets had anticipated.

“In contrast, milkfat prices held up better than the futures market had signalled, with anhydrous milkfat (AMF) setting another record high and butter closing in on its previous

peaks. As we’ve seen in recent auctions, China was a significant buyer, although less present than they have been in past years. Buyers from Southeast Asia and the Middle East increased their share of WMP purchases, while Chinese demand was more notable in butter,” says Gordon.

Westpac is forecasting a milk price of $8.40/kgMS for this season. Fonterra has taken a more conservative route, opening with a range of $7.25 to $8.75, giving a midpoint of $8/kgMS.

Gordon notes that Fonterra’s fore-

DAIRY ON THE MEND

THE DAIRY industry is much improved compared with what it was 18 months ago, according to Pita Alexander.

He says Fonterra has made some major changes which he thinks are going to be productive, but he says the future of the NZ dairy sector is all about China.

“That is imponderable; you can’t guess what’s going to happen. China has been good for us, and you could argue we should have diversified more, but their prices were so much higher than the others that you would be a fool not to take it,” he says.

Looking to the 2024/25 season, Alexander believes farmers need a payout

cycle and says in his experience as a trouble shooter, it was the wife who was the realist.

“He was worried about not being able to go the pub, the football match and was feeling that he’d lost a lot of mana. But she always faced reality

cast is a relatively conservative view compared to its existing forecast of $8.40/kgMS – a view that they’ve held since March, when GDT auction prices were somewhat lower than they are today.

“Futures markets are closer to our view, currently pricing a return of $8.55/kgMS. Indeed, Fonterra acknowledged that they’ve taken a cautious view at this stage, citing uncertainty around key factors such as the strength of Chinese consumer demand.”

of at least $8.40/kgMS. He says a lot of people will survive on less but believes a typical payout should be $8.40.

Finally, Alexander has some special advice for dairy farmers: above all, get your kids well educated because not all will come home to the farm. He says education has never been so important and there is nothing wrong with the $40,000 student loan which can be paid back over time.

His other piece of key advice is to attend seminars, conferences and field days where farmers can pick up invaluable knowledge to help them through a crisis.

and was more concerned with what was happening daily such as the kids and their schooling,” he says.

Alexander says, in a downturn, the farmer should be focused on sorting out cashflow and ignoring the temptation to spend up on large cap-

Explaining the bank’s forecast, Gordon says they are assuming that milk powder prices hold at around their current levels on average over the season.

“That’s a reasonable baseline given that powder prices are around their long-term averages at the moment –so they’re neither looking particularly stretched nor unsustainably low.

“What’s more, the global milk market seems to be reasonably balanced as the new season begins, and both demand and production

ital items such as farm machinery, which have a high capital cost plus ongoing costs such as interest and depreciation.

“If you can’t afford something then you can’t afford it and in a downcycle you must face reality,” he says.

are expected to record only modest growth in the year ahead.”

But there’s one clear area where upside risks to the bank’s milk price forecast are emerging.

Gordon says milkfat prices have surged in recent months and are at or near record highs.

“Our farmgate price forecast assumes that this isn’t going to be maintained, and that milkfat prices will ease back over the course of the season.”

Accountant Pita Alexander.

– Sudesh Kissun

Banking issues impacting mental health – Feds

and this is a huge issue for farmers.”

FARMERS’ RELATION-

SHIPS with their banks are “absolutely” having an impact on their mental health.

That’s according to Federated Farmers domestic commerce and competition spokesperson Richard McIntyre.

McIntyre says that 42.3% of respondents to the Federated Farmers Banking Survey said they felt their mental health and wellbeing were impacted by banking issues.

“That’s nearly half of farmers feeling as if their mental health is suffering as a result of their relationships with banks,” he told Rural News

“The struggle is real,

He says a significant issue is that farmers do not receive enough support from their banks.

According to the banking survey, one in five farmers felt their banks were doing enough to support them during periods of high interest rates.

“In addition, the number of farmers feeling undue pressure from their banks has gone from one in 20 farmers in 2015, to one in four farmers today,” McIntyre adds.

“The pressure farmers are facing from their banks is real and is rapidly becoming the number one issue facing farmers today.”

He says that farmers have accepted that mar-

gins on their loans are “a bit higher” than home loans, as there is more risk associated with running a business.

“However, we think this margin is higher than

it used to be, and higher than it needs to be,” McIntyre says. “The difference seems to be getting larger.

“The core issue is that banks seem to be pricing

Richard McIntyre says that 42.3% of respondents to the Federated Farmers Banking Survey said they felt their mental health and wellbeing were impacted by banking issues.

for risk, but not actually taking it,” he explains.

“In many cases we’ve seen millions of dollars in equity that should cover the risk of the loan completely, but banks still

RECORD ORGANIC MILK PAYOUT

FONTERRA HAS announced a record opening forecast milk price for organic milk this season.

The co-operative says this reflects a strong sales book and an encouraging supply and demand picture.

For the new season, which started June 1, the co-op announced a range of $9.25$10.75/kgMS, with a midpoint of $10/kgMS.

The co-op has also announced

a record final organic price of $10.80/kgMS for the season that’s just ended.

The co-op is looking for new organic milk suppliers. A team will be at the Fonterra tent at Fieldays this week to chat with farmers and answer questions.

Farm Source milk supply director Lisa Payne told Dairy News that the co-op’s organics programme has been running since 2002 and it currently includes more than 100 farms.

“Demand for organic products continues to grow and to keep up with this we are looking to further expand the programme.

“We’ve been encouraging farmers to get in touch with us if they want more information about the process and support available to convert their farm to organic.”

Fonterra also announced its advance rate for organic milk supply this season. For the first

seven months, farmers will get an advance rate of $7.50/kgMS. It lifts by 15c for milk supplied in January next year.

Meanwhile Fonterra’s Organic Farmer Conference was held in Taranaki last week. The co-op says the conference was a great opportunity for farmers to learn more about the market and the key factors driving the milk price, as well as connect with fellow farmers and the Farm Source team. – Sudesh Kissun

charging high interest rates.”

McIntyre’s comments come after a Primary Production Select Committee hearing late last month which saw committee members ask for their perspective on the issue of rural bank lending.

ANZ managing director business and agri Lorraine Mapu told the committee that there has been “a lot of discussion” surrounding the cost of borrowing for farmers.

“Interest rates for agri customers are influenced by economic conditions, regulatory settings, and monetary policy,” Mapu says.

She says the higher

interest rates farmers have experienced in the past two years are largely due to a combination of the Official Cash Rate (OCR), wholesale rates, and funding costs.

“So, the increase in the amount of capital banks must hold against the lending also has an impact. Risks around the sector impact the amount of capital banks must hold against the lending and therefore the interest they charge.”

Mapu says these risks include volatility in the export market, farmgate prices and inflation.

She says ANZ remains “committed” to supporting farmers.

JESSICA MARSHALL

M.bovis response levy cut ‘warmly

“When the sector works well together, we get results,” says DairyNZ chair Jim van der Poel.

A 66% REDUCTION in the dairy sector’s biosecurity response levy will land well with farmers, says Federated Farmers dairy chair Richard McIntyre.

“Things are still tough on farm and anything that takes some cost out of the budget will be warmly received,” McIntyre told Dairy News DairyNZ announced last week that thanks to a national effort from New Zealand dairy farmers in response to M. bovis, the levy will reduce from 2.4c/kgMS to 0.8c/ kgMS at the start of next month.

“The 66% reduction in the levy dairy farmers pay reflects the good progress made in response to M. bovis. While we may still see a few more cases, we are now approaching the surveillance phase and costs have reduced, thanks to a combined effort.”

The M. bovis programme is now six years into a 10-year eradication plan with currently no active, confirmed properties. DairyNZ is a partner in the programme, with the Ministry for Primary Industries (MPI) and Beef + Lamb NZ.    DairyNZ director

received’ – Feds

Chris Lewis says the decision to reduce the levy was made with confidence.

“We’re in a good place right now and this levy

reduction will be some relief to dairy farmers, ensuring they do not pay more than is required. The programme to eradicate M. bovis has been at

a huge financial and emotional cost to New Zealand farmers, yet the cost of letting it spread would have been much higher.”

The M. bovis eradica-

tion programme has cost around $722 million to date.

It was estimated the cost of letting it spread would have been $1.3 billion in lost productivity in the first 10 years alone.

The agriculture sector’s cost share for the biosecurity response levy is 32% with the Government funding 68%.

Of the industry cost, DairyNZ contributes 94% while Beef + Lamb NZ funds the remaining 6%.

The levy is managed by DairyNZ and paid to MPI. Levy funds can only be spent on response to an incursion, therefore the levy is adjusted to meet the dairy response cost obligations.

It is separate from

the DairyNZ milksolids levy.

Lewis says that around 98% of New Zealand dairy farmers have helped the 2% of farmers affected by M. bovis.

“The biosecurity response levy has been invaluable in the response to M. bovis. Without the collective effort of dairy farmers pitching in, we wouldn’t be where we are today with a stronger, more resilient biosecurity system.”

Lewis points out that this is an important time too to highlight that good biosecurity practices and keeping NAIT records up to date will ensure the risk of M. bovis and other livestock diseases are minimised.

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Dolomite provides magnesium found at the center of the chlorophyll which is essential for photosynthesis, turning sunlight into plant growth. Dolomite is a locally sourced, cost-effective fertiliser—insoluble yet plant available so it doesn’t leach your investment.

Dolomite not only overcomes magnesium soil deficiencies, it also:

Lifts pasture magnesium levels Decreases animal metabolic problems

DairyNZ director Chris Lewis says the decision to reduce the levy was made with confidence.

King’s birthday gong for King

Tasman district.

THERE’S A real need for people to push for, and on behalf of, New Zealand agriculture, says a farming leader recognised in the recent Kings Birthday Honours List.

Murray King, of Nelson, has been named a Member of the New Zealand Order of Merit for his services to the dairy industry.

“It’s great actually to see that there are a number of people from the farming world on the list, for a change.”

King told Dairy News the award was unexpected and he was just one of many people “out there doing our thing”.

“But it’s nice to be recognised and it’s a big honour.”

Describing himself as “easily bored,”

King said he would continue to work across a big range of interests in the agriculture sector, “from water management and storage through to development of rural leaders and things like that”.

The citation notes that King has helped promote and develop New Zealand’s dairy sector through multiple directorships, particularly in the Nelson/

A co-founder of the Appleby Farms ice cream brand, King and his wife farm several dairy properties in the North Canterbury and Nelson regions. He has championed innovation and collaboration through his directorships in several organisations, including board chair of LIC from 2009 to 2023, the Cawthron Institute, and chair of Waimea Irrigators Limited since 2016.

He has supported a number of industry initiatives, including the ‘To The Core’ and Fonterra governance development programmes, environmental sustainability programmes, and the rapid response to the 2017 Mycoplasma bovis outbreak.

In 2001 he attended the Kellogg Rural Leadership Programme and was a recipient of the Nuffield scholarship in 2003. Cooperative Business NZ named him Co-operative Leader of the Year in 2018, and awarded him a Lifetime Achievement Award in 2023, for his leadership of LIC.

Also, in 2023 King became a Trustee of the New Zealand Rural Leadership Trust and Nuffield New Zealand, supporting the ongoing development of leaders for rural New Zealand.

NIGEL MALTHUS

Murray King says his NZ Order of Merit award was unexpected.

Better genetics equals better beef calves

Better genetics hold the key to better beef calves from dairy cows. That was the key message from a series of workshops by Beef+Lamb NZ to increase the overall value of beef exports to NZ. Two thirds of NZ’s beef kill is from the dairy industry but calves from dairy farms have in the past been seen as more of a by-product. Peter Burke reports.

THE OLSEN’S dairy farm in the settlement of Opiki in the Horowhenua was the setting for the workshop which was attended by about 40 people.

Dr Christine Christensen, the chair Western North Island Farmer Council, says the objective of the day was get dairy farmers, calf rearers and finishers in the same room and show them the benefits of working closely together and highlighting the benefits of this. The idea is to eliminate the potential risk

of calf rearers buying at a sale where there is no certainty of the quality of the calves.

“You could almost call it a form of rural speed dating. It’s about getting all three groups to see the benefits of working together for themselves and the beef industry as a whole,” she says.

Christensen says there are a whole range of issues around dairy beef production, including the fact some buyers of calves don’t like the particular colour of a calf.

But she rightly points out that that once the skin is taken off, all animals look the same – so colour should not be an issue.

She says they held a similar workshop in Taranaki a few months ago and all parties were excited about the opportunities that the use of better genetics can bring.

At present around 20% of dairy progeny are sired by beef-type bulls, the majority of which are unrecorded sires.

The leading expert in improving dairy beef

genetics is Professor Rebecca Hickson who says the real value of using quality genetics in

the dairy industry is not widely understood. She says the challenge comes down to the fact that the

person buying the straw is not the person who gets the value from the growth genetics. She says

the dairy farmer is rightly concerned about gestation and easy calving rather than the buyers of that calf.

“At the moment, the calf is produced with an emphasis around what the dairy farmer needs, and so that’s what the beef industry gets, rather than giving benefits to the industry further down the line which is the growth the industry needs,” she says.

But Hickson says dairy beef progeny tests show that it’s possible with good genetics to deliver what the dairy farmer wants and what the beef industry needs and that no compromise is needed.

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Dr Christine Christensen, B+LNZ Western North Island Farmer Council chair.

Tactical use of AI

A MAJOR player in this project is LIC with Beef Genetic Product Lead, Paul Charteris pointing out his organisation have the majority market share in terms of inseminations of dairy cows. He told the workshop that that their goal is to deliver the very best beef genetics to dairy farmers. This means having genetics that fulfill dairy farmers’ requirements for easy calving and short gestation, but with genetics

that lead to beefy meat carcasses.

“The thing with dairy beef is the eye muscle has to be rounded so that it can be used by chefs. So we are selecting bulls that have got a very high eye muscle area and also good marbling so that when we cross over dairy cattle they can also produce an acceptable carcass for the processor,” he says.

Charteris says interest is now high in pro-

THE BULL MYTH

REBECCA HICKSON says no one breed of bull is better than the other – it’s the traits and the genetics that counts. She says there are good and poor performing bulls in every breed, so understanding the traits of any bull should be the focus.

“When you look at the question of should you use a bull or a straw, there’s a whole lot of things at play. I believe that if you use a straw, use a good one that will deliver for you and for the most part won’t cost more,” she says.

But she adds, if a farmer is going to use a bull, they should use a good one. Hickson says farmers have told her they don’t need genetics because they feed their calves well. But she notes that while better feeding will always give you a better animal, even on a lower nutrition plain, better genetics will always outperform lower genetics.

When rearers are selecting calves, Hickson says there is sometimes a tendency to select the bigger calf over the smaller one. But she says there is no guarantee that

ducing better dairy beef and LIC is seeing growth of beef insemination into dairy cows and believes this is going to rise in the future.

One of the key messages from Charteris to farmers is to use AI tactically. He notes the obvious that traditionally beef bulls have been mated over dairy cows at the end of the mating season.

“Tactical AI use means identifying those cows with the lowest BW and

mating them on day one of the mating season with the right semen, at the right time of the mating season, so that you get big, strong early season calves that are well marked and that are salable,” he says.

Like Hickson, Charteris emphasised the importance of selecting bulls for their genetic traits and not because of their breed. He accepts that in some parts of the country, farmers may

a bigger calf will grow into a bigger animal and there is data to suggest that the small calf may in many cases be the best bet.

“This is because the beef breeders have done a phenomenal job of creating ‘curve bender bulls’ – meaning that while a calf may be born small, it will grow fast, will calve easily, but is at least, if not more valuable than the larger calf,”

she says.

Hickson says farmers, calf rearers and finishers who have long standing, close relationships do their best and this is the pathway to producing better beef animals. She says she’d encourage farmers when they are picking the straw for their dairy cows to not only look after their own needs, but to think about others down the value chain.

have a certain market for some breeds or they may have a buyer who is set up to, say, take only Charolais or Hereford cross calves. “That’s fine, but remember you can find vastly superior bulls within a particular breed,” he says.

Professor Rebecca Hickson says that no one breed of bull is better than the other – it’s the traits and the genetics that counts.

LIC’s Paul Charteris says their goal is to deliver the very best beef genetics to dairy farmers.

DWN trustees to step down

TWO LONG-SERVING

Dairy Women’s Network (DWN) board trustees are stepping down.

Edgecumbe dairy farmer and accountant

Donna Smit and Mark Heer, a consultant and former head of rural banking at ASB, will be stepping down at DWN’s annual meeting in October. Both have served on the board for nearly 10 years.

DWN board chair

Trish Rankin says Heer and Smit have been invaluable on the board.

“Their multiple-terms as trustees have added significant value, insights and thinking to make sure we keep on track and deliver for our members.

“We’ve just celebrated 25-years of DWN excellence, and we are poised for even greater impact

and growth. Mark and Donna have been an important factor in helping us take the next step”.

DWN will miss having them around the board table as a dynamic duo, she adds.

“They may approach ideas like chalk and cheese but are fantastic to watch together as they work through how we achieve our purpose and manage our finances and operate as a not-forprofit.

“They have a special balance of personal knowledge and unique abilities that cannot be replicated. Mark is always thinking with an organisational heart and about our people and Donna is amazing at making sure the numbers work, which together with the other trustees have enabled the organisation to be hugely

successful,” says Rankin.

Heer has 30 years’ experience in business across rural and corporate banking, manufacturing, wholesale and retail SMEs. He has also held governance roles across these sectors both as a shareholding director and an independent director.

He reflects that his motivation to initially join the DWN board was to role model to his work colleagues and daughters

that championing diversity and being prepared to step forward into the unknown is a worthwhile endeavour and not one to walk away from.

DO IT!

BOTH MARK Heer and Donna Smit’s advice to someone considering applying to the board is ‘do it’.

“Take the opportunity to gain learnings, perspective and insights through an action-orientated organisation. DWN lives actions over words every day and this will be the secret to DWN’s ongoing success. As a non-political, action and outcome focused organisation, DWN is increasingly seen as the industry connector to bring people and ideas together to make things happen,” says Heer.

Smit adds that it’s a great place to develop governance skills.

“The culture is awesome, and you will be energised. Today’s dairy farmers are skilled in multiple disciplines and who cope with change at a rapid pace DWN helps connect, build and celebrate our industry’s professionalism, and what’s exciting is its being noticed by other industries and other countries who want to emulate what we have.”

“The opportunity to give back to the dairy industry through an industry good, not for profit organisation, was also a key factor. I have learnt through my life that the only important thing is what you do, actions rather than words are heard the loudest. My nine years have been full of learning and gaining new perspective and insights and it’s been a privilege and honour to serve on the board,” Heer says.

Smit has significant experience as a chartered accountant as well as having, with husband Corrie, built up a successful family farming

Double Stud Pallet Deal

business, owning seven farms in Edgecumbe and Oamaru, and investments in kiwifruit.

Smit believes that there is a lot of talent behind the farm gate and DWN is instrumental in making sure New Zealand dairy farmers succeed.

“DWN run professional workshops, conferences and webinars for all at the lowest cost with the greatest reach and this is something I respect immensely,” says Smit.

Applications for DWN Trustee positions have opened and DWN are looking for people passionate about championing diversity, empowering individuals, and shaping the future of the dairy industry to join our board of trustees.

@dairy_news

Donna Smit

Mark Heer

Stockfood prices settle down after recent years of volatility

AFTER THE volatility of recent years, stockfood prices and availability have now stabilised, according to J Swap

Stockfoods general manager Morgan Swap.

Two major external factors – Covid-19 and then the Russian invasion of Ukraine – drove the grain market sky high, but the market has now settled, says Swap.

“Generally speaking, feed prices didn’t move much during the first 6-12 months of Covid, then we had that bit of a sugar rush. Initially Covid didn’t have much impact on prices, then prices started to go up as freight and logistics costs started to rise.

“And then we had the second big surge in prices of ag commodities when Russia invaded Ukraine, which drove everything ballistic. So we had that double surge in prices, but since then, things have been sinking back down to more normal levels.”

At the peak, palm kernel went to over $500/ ton but it’s now in the mid $300’s and Swap says it has been even lower than that.

“Palm kernel was one of the ones to come down first, and there’s a reason for that. It went

up like a sky rocket, post the invasion; the EU is still the largest market for palm kernel. Russian grain is very important, the invasion sent grain prices through the roof and the traders all looked to everything else and thought ‘we’ve got to get covered real quick’, which drove up all grain prices.

“So it’s sort of settled back down since, across the board. Your co-products like tapioca, NZ maize, Australian wheat, DDGs – they’re back to multi-year lows. A lot of the other products are settling down also. Things like soya bean meal are always volatile, but our core products are definitely more stable now on price.”

Swap says, while J Swap Stockfoods haven’t imported any more palm kernel over the last year than normal, as a percentage of what’s being fed to cows, the proportion of palm compared to co-products has increased, just through straight economics, because it was cheap compared to everything else.

“As much as people – consultants and the like – talk about palm kernel being ‘old hat’, if the other co-products are more expensive, and the gap between them is big enough, they do flock back to palm kernel.

“So, what we’ve seen in the last 12 months is, the farmer that was feed-

ing 60% palm and 40% co-products, went to 70%-30% or 80%-20% to bring the average price down.

“This is the first season for 5-6 years when the co-products part of the mix didn’t grow, and that was just economics. It could now drift back in the direction it was heading.

“Palm kernel you could buy for under $300 and all the co-products were still up in the $500600 range or higher, then the dairy payout went down, which exacerbated the trend. Farmers were definitely watching their spend.”

On the availability front, Swap says there certainly don’t seem to

be any issues. “It doesn’t appear that there’s any great shortage of any of the main products. Price will come into it, and some products may not always be available at the price some farmers may want, but supply is okay.”

The mix of what farmers are ordering comes

down to the total price of the ration, he says.

As for regional demand, he says J Swap’s sales data, by region, closely tracks areas where feed has been short. “As a generalisation, central North Island, encompassing the Waikato, BoP and the King Coun-

try, has grown a reasonable amount of grass this season, but pockets of NZ have suffered. North Canterbury has been under the pump and having to buy in more feed. South Taranaki and parts of the Manawatū have had a bit of a tough end to their season too.”

ADAM FRICKER

Thank goodness for milk

FONTERRA MAY be planning to sell its Anchor brand but it’s continuing to promote milk. In their latest advertisement, Anchor and TBWA\New Zealand have reimagined what the world would be like without milk – to remind Kiwis to celebrate World Milk Day.

Anchor’s new ads shows what a melancholy place a milkless world would be: committing cookie sacrilege by dipping delicious biscuits into tall glasses of water; starting the day off with bowls of water-soaked cereal; and causing grumpy cats everywhere to get even grumpier with Anchor’s Zero Lacto milk nowhere in sight.

These dystopian, devoidof-dairy scenes coupled with the simple statement ‘Thank Goodness for Milk’ remind viewers to remember the pivotal role milk plays.

Super cow

BRAZIL HAS hundreds of millions of cows (234.4 million head at the last census) but one is extraordinary. Her massive, snow-white body is watched over by security cameras, a veterinarian and an armed guard.

Worth US$4 million, Viatina-19 FIV Mara Movéis is the most expensive cow ever sold at auction, according to Guinness World Records. That’s three times more than the last record holder’s price. And at 1100 kilograms, she’s twice as heavy as an average adult of the Nelore breed.

Viatina-19 is said to embody Brazil’s ambition to raise meatier cows, something breeders have pursued there for years. Billboards were put up to encourage ranchers, locals and vet students to go see the super cow.

Oat dear!

A GLOBAL plant-based milk company has confirmed it is not going ahead with its first UK factory.

Sweden-based Oatly was due to build its first production facility for the country in Peterborough, a move it initially said would create 200 jobs.

But, as first reported in the Peterborough Telegraph, the company has withdrawn its plan because it says it has identified new ways to serve the UK market by utilising existing facilities across Europe.

Previously, the vegan food and drink products maker said the UK factory would have capacity to grow and produce up to 450 million litres per year using locally sourced oats.

The company sells its products in more than 20 countries across Europe and Asia. Plant-based protein companies have been struggling in recent years due to poor sales.

Rural travel

IT SEEMS ‘rural travel’ is getting very expensive these days. Milking It notes that Rawiri Waititi, chief co-agitator for Te Pati Maori, has done us all a favour by highlighting this overlooked fact: His Q1 travel expenses of $31,653 were the highest for MPs (excluding Ministers). A spokesperson says Waititi lives in a rural area some 250km from the closest airport in Rotorua. All the same, that doesn’t explain his air travel costs last year.

In 2023, he incurred $59,847 on air travel and $43,262 on surface travel costs - a total of $103,109. By contrast, Act party leader David Seymour incurred $31,706 on air travel and $15,184 on surface travel - a grand total of $46,890 or 45% of Waititi’s costs.

EDITORIAL

Time running out for Synlait

A $130 MILLION loan from major shareholder Bright Dairy will only keep the lights on at Synlait for so long.

The listed company urgently needs to sell off its under-utilised assets in the North Island, notably a $260m processing plant at Pokeno, to meet banking covenants and reduce debt.

Synlait’s share price dropped to around 38c/share last week, valuing the company at only $85 million. This means there will be little appetite from shareholders – including a2 Milk Company which holds a 20% stake in the company – to take part in a capital raise.

Now Synlait faces a new problem: many of its farmer suppliers want to walk away. They have issued cessation notices. A silver lining is that farmers need to give Synlait two years notice. While this buys the milk processor time to steady the ship, some think it could be too little, too late for Synlait.

The company says the cessation to supply notices from a “significant majority” were not a surprise given its current performance.

“Farmer suppliers have signalled they want to see Synlait’s balance sheet deleveraged so advanced rates can be lifted further, and submitting a cessation notice provides an option, rather than a clear intention to sign with other processors,” it says.

The next few months will be crucial for Synlait. The short-term outlook isn’t looking great. In April, Synlait reported a $96 million half-year loss. Last week it signalled full-year earnings will be at the lower end of its $45m-$60m range, before expected oneoff charges.

Synlait has been hit by high costs, falling sales, the need to repay debt and a row with its major customer A2 Milk, as well as being unable to sell its consumer dairy products business Dairyworks, which it has valued at $120m. The board and management remain confident of steering the company through the current storm.

However, things look to get worse before it will get better for Synlait.

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The farmers’ scientist will be sorely missed

part of that change is genetics – genetics that were driven by Jock.

FEW PEOPLE have any idea of the huge contribution Jock Allison made to agriculture and to science.

Jock, who passed away recently, had international status in sheep breeding. His contribution as the Director of the Invermay Research Centre and later in the private sector is legendary. No scientist has contributed more to the increase in genetic merit of the New Zealand flock.

Jock’s early work focused on improving fecundity lifting the ram to ewe ratio. He found that given sound fertility with the right rams, one ram could service 250 ewes without any statistically detrimental effect on conception rates. It didn’t make him popular with ram breeders, but Jock was never deterred by popularity or lack of it. He was focused on quality science and results that improved the industry’s performance.

Through his tenacity and foresight, Invermay was transformed from a few dilapidated buildings to a modern research facility. When Wellington bureaucrats wanted to take a pruning knife to the staffing and activity at Invermay, it was Jock who battled for its retention. He was loyal to his staff and loyal to the needs of the region.

One of Jock’s significant accomplishments as an AgResearch director was convincing the then Meat and Wool Boards in 1997 that Genetics nProve should be developed using the animal model BLUP. This doubled the rate of genetic change in the sheep industry.

He also advocated a central progeny test.

Again, it had a major impact and increased genetic gain by a further 50%. Lamb production per ewe has increased by 114% since the 1990/91 year, which on a kg of dry-matter basis is a gain more than 30%. A major

Another of Jock’s most remarkable achievements was getting the dairy industry, the meat industry and AgResearch into the same room in 2002 and having them fund, along with other countries, the sequencing of the cattle genome. That commitment meant the cattle genome was prioritised for sequencing as the first farmed animal species.

Jock made the transition from government servant to the private sector, forming his own business focused on importing new sheep breeds that made a huge and lasting contribution to the sheep industry. His company LambXL, imported new sheep breeds, including Texel, Fin, Oxford Down, East Friesian, Beltex, and Awassi.

In 2000 he received the NZ Society of Animal Production’s Sir Arthur Ward Award and was made an Officer of the NZ Order of Merit for services to agriculture – a rare accomplishment for a rural focused person.

In 2003 he received the Bledisloe Medal for distinguished contributions to NZ’s land-based industries.

Jock was a scientist who believed extension was as important as research. He was a ‘farmer’s scientist’, not an ivory tower theorist. He was happiest at field days or out on a farm explaining his findings. While sometimes blunt and terse, Jock was actually a warm, helpful person with a great sense of humour. Nothing was too difficult or too much trouble if it helped the cause.

In later life Jock took a strong interest in climate science. He attacked the issues with his characteristic fervour. He devoured difficult scientific papers on all sides of the debate. He reached out and traded thoughts and ideas with the world’s

leading researchers. They held Jock in high regard. His published paper with Dr Tom Sheahen is highly acclaimed as comprehensive, detailed and very

readable.

Jock Allison was a great New Zealander whose contribution and commitment to science will be missed.

OWEN JENNINGS

• Owen Jennings is former national president of Federated Farmers.

The late Jock Allison was happiest while out at field days or explaining his findings on farm.

B IS FOR BEING A LEADER.

FMG is proud to lead the way as the first B Corp Certified General Insurer in New Zealand. We’ve joined the growing ranks of other progressive businesses that adhere to some of the highest standards in verified social and environmental sustainability, transparency and accountability. To put it simpler, we’re committed to making a positive difference for the communities our clients are part of, and the environments they live in. Because at the end of the day, we want to create a stronger future together. And as we’ve often said, we’re here for the good of the country.

We’re here for the good of the country.

Science helping prevent mastitis, reduce emissions from cows

BUILDING ON their

groundbreaking work in mastitis prevention, FIL, a subsidiary of GEA Farm Technologies New Zealand, is collaborating with Farm Medix to introduce innovative solutions to enhance milk quality, improve profitability, and combat anti-microbial resistance (AMR).

“Over the past six years, FIL and Farm Medix have recognised and addressed the challenges farmers in New Zealand face with managing mastitis within their herds,” says Colin May, FIL’s national sales manager.

Central to this initiative is Farm Medix’s inhouse laboratory at the Waikato Innovation Park, the only facility in New Zealand solely dedicated to mastitis testing and prevention. It is operated by a team of highly skilled microbiologists, including chief scientific officer Natasha Maguire, and supported by senior vet Jess Shelgren.

The scientists meticulously analyse milk samples from farms across New Zealand. Through advanced pathogen identification techniques, they partner with FIL to create targeted strategies, effec-

LOWER SCC, LESS ANTIBOITICS

FIL SAYS Stephen Begbie’s story is a testament to the effectiveness of its approach to mastitis management.

His experience shows that with the right support and strategies, it is possible to significantly reduce mastitis cases, improve milk quality, and achieve substantial cost savings.

Statistics show that mastitis control, including dry cow therapy, accounts for about 85% of antibiotics used on dairy farms in New Zealand (source DairyNZ). In the United States, mastitis affects approximately 38% of the 9.4 million dairy cow population.

While comparable data specific to New Zealand may vary, this highlights the global significance of addressing mastitis through innovative solutions like those offered by FIL and Farm Medix.

Reducing mastitis, in addition to improving animal welfare, also helps the industry reduce emissions. Healthy herds increase milk production and reduce the overall footprint of dairy farming. A healthier cow translates to increased efficiency, decreased antibiotic usage, and less use of resources.

This shift towards proactive health management enhances farm profitability and mitigates on-farm emissions, aligning with New Zealand’s emission reduction goals.

“Dairy companies are realising that preventing mastitis, not just treating it, results in more milk in the vat,” says Colin May.

“Lowering somatic cell counts and reducing antibiotic usage helps reduce emissions and hit targets. It also has a positive impact on the industry.

“We’ve truly shifted farmer thinking about mastitis through our dedication to innovation and environmental responsibility.

Through evidence-based interventions, we are improving milk quality, increasing herd productivity, and supporting sustainable agricultural practices, both within New Zealand and globally,” says May.

tively lowering somatic cell counts and reducing clinical mastitis. This scientific precision distinguishes their approach, delivering bespoke solutions the company says are unmatched in accuracy and efficacy. Farm Medix also export their products around the world.

The engagement of FIL’s 19 area managers is pivotal. They collect milk samples and collaborate closely with Farm Medix’s laboratory to developed customised mastitis management plans tailored to each farm’s unique needs and goals – so every

farmer receives personalised support to help them to manage and prevent mastitis.

Stephen Begbie, a dairy farmer from Paeroa, credits FIL’s service and support for the significant reduction in mastitis cases on his farm.

“I had been grappling with a significant mastitis problem, the somatic cell count was spiking up and down, reaching as high as 380,000,” he says.

Begbie decided to have his whole herd tested by Farm Medix after a discussion with his FIL area manager. Out of his 320 cows, 30 were identified

as having Staph aureus. By segregating these cows from the rest of the herd, milking them last and supplying milk without the Staph aureus cows in the vat, he was able to reduce the somatic cell count from 380,000 to 85,000 in just one day.

This intervention led to a significant reduction in mastitis cases over the last three years.

Last year, Stephen only had six cases of mastitis and by taking a selective approach to drying off, he only had to dry cow 10% of his herd.

Begbie strongly believes in the value of

lab testing: “It is a more effective approach than herd testing, which only provides results on the day of the test. Lab testing, on the other hand, allows for ongoing monitoring and targeted interventions.”

The cost savings from this approach have been substantial. Stephen estimates that he saved $2,000-$3,000 on dry cowing last year alone because his cell count was so low. He also notes that having fewer mastitis cows in the herd balances out other costs, such as treatments and additional labour.

Dairy companies are realising that preventing mastitis, not just treating it, results in more milk in the vat,” says Colin May, FIL.

Farms need tech experts, not just more staff that can milk cows

THE NEW Zealand dairy industry needs more technology managers as much as they need staff on the ground who can milk cows, says a leading Waikato dairy farming family.

Morrinsville farmer and former Fieldays

New Zealand chair Lloyd Downing says technology being introduced to New Zealand dairy farming can revolutionise efficiency, but the industry needs tech experts, not just more staff that can milk cows.

“Technological innovation across dairy farming has moved hugely in my family’s three generations of farming. We now have access to data generating tools and automation that creates efficiency in all areas of dairy farming, but the industry needs more staff proficient in tech to really drive it forward,” says Lloyd.

“Industry bodies and training organisations need to be thinking about how we upskill our future generation of farm leaders, so the industry can really capitalise on the technology available.”

On his own farm, managed by his son Justin, they have moved to SenseHub Dairy collars, and they credit the technology in part with halving their empty rate. In the first season of using the collars their empty rate fell to 6.9%.

Justin manages the

200ha farm milking 510 cows near Morrinsville.

A highly skilled staff member who was key to picking the herd’s in-heat cows retired from the industry last season and Justin was left struggling to replace him.

“He was instrumental for us during mating season and highly skilled at picking in-heat cows. I realised that finding and training a replacement staff member in the current labour market was going to be tough. That’s when we decided to investigate the SenseHub Dairy collars,” says Justin.

While he was sceptical if the technology would work as well as his staff member, the impact on the farm was almost immediate.

“We would usually need three staff in our shed at mating. SenseHub Dairy collars have removed the need for that many people and our empty rate dropped this mating season to just 6.9%. We haven’t had it that low for about six years. It usually sits anywhere between 8% and 12%,” says Justin.

“This is just one example of how technology is driving efficiency on dairy farms, it’s just about farmers harnessing it,” says Lloyd.

He says the SenseHub interface and support has made using the technology simple.

THE TECHNOLOGY means Justin Downing can also monitor what’s happening on the farm even when he’s not there.

“You get a sorting report and while I’m sitting drinking my coffee, I can see the cows getting drafted out of the herd in the shed.”

The team can also automatically sort cows as they are bringing them into the shed.

“If we’re getting cows into the shed and there is a lame cow lingering at the back of the herd, we can punch her number into the system and it will draft her out once she gets to the shed,” says Justin.

“It’s amazing being able to ring someone up and they know your

farm and can help you trouble shoot any issues.

The support from MSD Animal Health in relation to the SenseHub technology is great. These collars have proven to be a real game changer on our farm,” says Lloyd.

The Downing farm covers rolling to steep terrain which can make managing the herd a challenge. The family decided to shift to technology, not only to accurately identify cows ready for mating, but also to reduce staff workload and manage

herd health and productivity.

“Technology has come such a long way. We can now turn electric fences on and off without having to be anywhere near the energizer. We have technology like SenseHub software that can provide us with data that can be used to support the health of your herd every day. Weighing and EID technology can drive critical decision making on farms. Farmers are doing

well but staff skilled in driving this technology could lead to even greater gains,” says Lloyd. Alongside improving their empty rate, the SenseHub technology alerted staff to specific animals at risk, triggering human intervention and a diagnosis of mastitis or milk fever, along with alerting staff to the increased risk of heat stress by identifying increases in herd level heavy breathing.

Morrinsville farmer Justin Downing credits technology in part with halving their empty rate.

The quest for quality

PAT AND Shelley

Schnuriger’s resolve to reduce their Holstein Friesian herd to 100 cows has proven its worth, with an exceptional percow production backing up their decision.

Based at their 80ha property in the Waikite Valley, the Schnurigers reduced their cow numbers to lower input costs this season on the back of the forecast lower payout. In doing so, they had the opportunity to feed their cows substantially better, and as a result, they are estimated to produce a total of 64,00065,000 kgMS on a predominantly pasturebased system, with some in-shed feeding and grass silage.

Pat grew up on a dairy farm with his parents, which is how his passion for milking cows began. As an adult, he worked through the contract to share milking system before finally purchasing the Waikite Valley farm in 2001.

Shelley’s passion for farming stemmed from growing up on a sheep and beef farm, and then the dairy farm her parents sharemilked on.

The Raetea stud was first established around 16 years ago when Shelley bought her first show cow, Tahora Nelson Lark VG85, from the Tahora Topshelf Sale.

Shelley always loved the idea of showing cattle after helping her friends show their Brown Swiss cows.

“I always had the idea I wanted to get into showing cows myself,” she says. “I had an eye for Holstein Friesian cows, and so my dad helped me buy a couple of Holsteins. I really didn’t have anywhere to put them because I didn’t own a farm.”

Pat and Shelley met 14 years ago, when Shelley was looking for someone to take care of her cows. Shelley was encouraged by friends to ask Pat to do so, and the rest is history.

Once Shelley’s Holsteins arrived on the

NO ‘BLANKET BULL’

PAT AND Shelley Schnuriger don’t “blanket bull” their herd, they look at “each and every one” of their cows.

traits need to be improved on each cow, and then look at which bulls will fit what they want to improve, production being their top priority.

Shelley says. “We couldn’t do this if we had a bigger herd; it would take forever. At the moment, our biggest problem is finding bulls that are good enough to meet our criteria.

His calves are quite nice show types, and we are excited to start milking about five of them this coming spring.”

34 and an udder overall 1.89.

makes it a struggle to find bulls who are polled and good enough to use,” Shelley says.

farm, they made their way into Pat’s crossbred/Hol stein Friesian herd.

“I changed Pat’s out look on pedigree Hol steins and what they’re capable of,” Shelley says. “That’s how our stud has evolved over the years; because of my passion for showing these pedigree cows.”

land Breanna S3F VG88 5*, purchased from a local breeders Rachel and Andrew Burke.

The first cow Pat and Shelley bought together was Fantastic Lartst Like S2F EX4, purchased from the 2011 Waipa Club sale.

“She has been a massive foundation cow in our herd,” Shelley says. “We bought her as a rising three-year-old and showed her until she was nine or ten. She won many of the local championship shows, and she passed away at fourteen years old.”

The Schnurigers are

Breanna was sired by Comestar Leader, and her best production was as an 11-year-old when she milked for 265 days, producing 8830 litres of milk (421kg fat, 314kg protein).

“She has been another significant cow in our herd, particularly for breeding,” Shelley says. “Her family line has had a big influence on our herd.”

Breanna has had six Raetea heifers, and four of these have classified

WHEN:

ANNE BOSWELL

The first cow Pat and Shelley Schnuriger bought together was Fantastic Lartst Like S2F EX4, purchased from the 2011 Waipa Club sale.

Innovation, probiotics deliver results

IN 2018, faced with a Salmonella outbreak among his calves and the effects of the subsequent vaccination, Waikato dairy farmer Cole Townsend turned to social media for a solution.

Witnessing his calves’ poor recovery and lack of desire to drink, he administered Probiotic Revolution’s probiotic additive Calf Xtreme. Within days, the calves recovered, surpassing his expectations in just 30 days to become the healthiest batch he had ever reared, Townsend claims.

Since then, Townsend has integrated the product into his yearly calfrearing routine, using higher rates of milk than he had ever used.

Townsend says recognising the importance of a strong start for his calves, he administers BioRescue paste initially,

followed by a gradual increase in milk on once a day feeding, to 7-8 litres by day 10.

The results have been remarkable, he says, effectively eliminating nutritional scours and helping Townsend decide he didn’t need to vaccinate the herd for Rotavirus, easily offsetting the cost of the product.

“Calf losses are negligible, heifer calves reach target weaning weights two weeks earlier and by calving they are 20-30kg heavier. There has also been a significant turnaround in fertility of first-calving heifers with empties falling to 3-4%,” he says.

Emboldened by these successes, Townsend ventured further, introducing SuperStart Lead Feed for springers in 2019 and Rumicell for milkers in January 2020.

These innovations aimed at enhancing feed conversion efficiency and bolstering herd immunity yielded impressive results. Cows are presenting better at calving.

“We used to assist 10% of the herd whereas now it is only 3-4%. The quality of colostrum is better, there is a rapid increase in milk and cows are getting to peak pro-

duction 10-14 days earlier,” he says.

Results with mastitis have also been impressive. Cell counts in the first season halved from 120,000 and have generally been below 80,000 ever since. There has also been noticeably less mastitis with annual cases dropping from 15% of herd numbers to 6-7%, except in wet summers.

Townsend says his experience during a drought with the herd on OAD milking provided compelling evidence that daily Rumicell feeding translates into increased milk production.

“Ceasing Rumicell supplementation led to a drop in milk production and a noticeable decline in cow temperament and manure quality.

Production lifted again when it was reintroduced. I’m convinced and have been using Rumicell ever since.”

Matt Collier of Probiotic Revolution points out that in the shortterm different herds can respond differently.

From a trial done at Lincoln University there was a 22% increase in acetate levels from Rumicell indicating a substantial improvement in feed conversion especially from fibers in the diet.

“We see better rumination and cud chewing because of blood sugars rising, triggering the part of the brain responsible for cud chewing.

While around 50% of herds may experience an initial production boost, factors such as stage of lactation, feed availability and body condition can influence outcomes.

Sometimes extra energy is redirected to body condition or when feed is abundant more grass is left behind.

“We like to work with our farmers so that they get a highly profitable outcome.”

Townsend says his journey exemplifies the transformative power of innovative practices and probiotic solutions in dairy farming.

“From overcoming calf ailments to optimising herd health and productivity, each step reflects a commitment to excellence and a willingness to embrace new approaches for sustainable and efficient farming.

“I hope my story serves as a beacon of inspiration for dairy farmers navigating the evolving landscape of agricultural practices and technologies.”

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Waikato dairy farmer Cole Townsend (middle) lifts performance of calves and cows, improving health and production.

Registrations filling up fast for largest dairy conference

REGISTRATIONS ARE quickly filling up for the South Island Dairy Event (SIDE), New Zealand’s largest dairy conference.

The event, established in 1998, provides South Island farmers with a platform to enhance their knowledge and skills crucial to their businesses.

ABOUT SIDE

The South Island Dairy Event (SIDE) was established in 1998 as a platform for South Island based farmers to evaluate knowledge and skills relevant to their business. Over the past quarter-century, SIDE has grown into New Zealand’s largest dairy conference tailored specifically towards empowering farmers through education and networking opportunities.

An extra session has been added this year, featuring SIDE Breakfast with Cameron Bagrie, an independent economist. He will offer his expertise on the issues and opportunities facing the dairy sector. Attendees will have the opportunity to engage with Bagrie in an intimate setting, gaining valuable insights and asking questions directly.

Event chair Jonathon Hoets is excited about the upcoming conference.

“This is an invaluable opportunity for our

KEYNOTE SPEAKERS LINED UP

SIDE 2024 organisers have secured some key speakers for the event. Here are four of the keynote speakers:

DAN PRONK –

Inspirational Speaker AFTER FAILING dismally in his first career dream of being a professional triathlete, Pronk studied medicine on an army scholarship. After passing the punishing Special Air Service Regiment (SASR) selection course, he then served on over 100 combat missions in Afghanistan as a frontline special operations doctor. His casualties included fellow SAS soldiers, commandos, local civilians, and even the enemy.

The thrill of adventure and the challenges of battlefield medicine gave him a sense of purpose in testing his skills to the limits, but the despair of being helpless to save his friends in their final moments haunted him. His journey back to a fulfilling life began when he moved into medical leadership roles, using the medical skills honed

in Afghanistan to save civilian lives.

Pronk is just a small average guy who pushed himself to perform in complex environments, and will share with you his tales of adventure, resilience, and give you the tools to thrive.

JEREMY HILL –Fonterra

JEREMY HILL has worked for Fonterra and its predecessor companies for over 30 years, the last 17 as Fonterra’s chief science & technology officer and has held executive leadership roles in science, technology, regulatory and food assurance across the entire farm to consumer value chain.

Hill is an inventor of 20+ patent families covering different aspects of dairy science, technology, health, nutrition, and sustainability, and has published over 100 scientific papers. He has invented or co-invented IP used to create four start-up companies, all still operating.

He is a graduate of the New Zealand Institute of Directors company directors’ course

and has held numerous governance positions in the boards of NZ and global organisations including president and chairman of the board of the International Dairy Federation. In 2018 Hill co-established the Sustainable Nutrition Initiative based at the Riddet Institute, Massey University, where he was a director on the Riddet Board 2009-2012. He was made a Member of the New Zealand Order of Merit for services to science and the dairy industry in the 2020 Queens Birthday Honours.

SIOBHAN O’MALLEY

– Dairy Farmer

SIOBHAN O’MALLEY

IS a dairy farmer living on the West Coast, near Hokitika at Pukeko Pastures. From an urban family growing up in Christchurch, she and her husband Christopher and their three children sharemilked for 10 years in North Otago, Mid-Canterbury and the West Coast until buying a 180-cow farm in 2022. Christopher and Siobhan won the NZ Sharefarmer of the Year in 2017. Siobhan is the co-

founder of farmer charity Meat the Need and co-founder of luxury knitwear e-commerce brand, Hemprino. She works full-time off farm as a secondary school English teacher and strongly dislikes gardening and housework.

CAMERON BAGRIE –Economist

CAMERON BAGRIE IS a leading independent economist, with extensive experience in business and agriculture and brings a local and international flavour to his conversations. Bagrie’s ability to take complicated and complex information and data and make it accessible and meaningful for his audience sets him apart. Bagrie also runs two other businesses besides Bagrie Economics and sits on a couple of boards so is a business honed economist.

Join Bagrie as he takes SIDE participants through the issues and opportunities for the dairy sector, provides commentary and analysis on what the present and future holds and how the sector can thrive in these uncertain times.

attendees to gain insight into navigating uncertain times within the dairy sector,” said Hoets.

“We are dedicated to empowering individuals within the industry through education and networking opportunities.”

In addition to

Breakfast with Cameron Bagrie, SIDE offers a research farm field trip, three high profile keynote speakers, 12 workshops with Q&A sessions, a celebration dinner marking SIDE’s 25th anniversary milestone, and the BrightSIDE programme for dairying

been empowering

for over two

by providing valuable insights on how to adapt and manage change within their businesses. www.side.org.nz.

future decision makers.

The South Island Dairy Event has

people in the South Island dairy sector

decades

SIDE 2024 event chair Jonathan Hoets with wife Stacey and their children.

Get the odour in order

ODOUR FROM farm

dairy effluent is increasingly an issue as herd sizes grow and urban boundaries get closer to operating farms.

Odour issues can also be a regional coun-

cil compliance concern if offensive or objectionable odours are detected beyond the property boundary.

Management of odour is often referred to in effluent consents.

Odour is generated during the incomplete anaerobic (low/ no oxygen) breakdown of organic matter in effluent. Sources of odour include ponds, tanks, solids separation systems,

NEVADA BLADDER

TANKS

”As the rules change, we’ve had to change with them. And we’ve changed to a system which we believe is the right one to use”

CAUSE OF SMELL

ODOURS FROM ponds are caused by a mixture of gases. The type of pond and the way the pond is operated and maintained impacts on odour production. These gaseous compounds are produced all the time but usually at low levels that are not an issue. However, occasionally they get out of balance and produce an ‘odorous’ episode.

The main gas that is likely to cause many issues for dairy effluent ponds is hydrogen sulphide with ammonia gas more of an issue with large volumes of effluent solids. Hydrogen sulphide comes from the anaerobic (no oxygen) layer of ponds produced by bacteria that reside there. In a healthy pond, hydrogen sulphide moves from the anaerobic layer to the aerobic layer and is changed by a different bacteria into sulphur oxide gases (not quite as smelly), which are then released to the atmosphere. This process can go wrong, resulting in the release of odorous hydrogen sulphide to the atmosphere.

sludge piles, feed pads, and silage stacks. Effluent application, the de-sludging of ponds and muck spreading operations also release odour.

For this reason, it is sensible not to construct ponds, yards, pads, stock housing or other odour generating facilities near property boundaries. Many district and regional councils will have minimum distance requirements, however you should also note the direction of the prevailing wind and what will be ‘downwind’ of your pond or facility.

If a neighbour complains to the regional council about an odour the council will come out to your farm and assess the situation for frequency, intensity, duration, offensiveness and location of the odour. Infringement /abatement notices may be a potential consequence.

Keeping the neighbours happy

If you are planning an activity you know will generate some odour, such as spreading a large solids pile or desludging a storage pond, consider these handy tips:

• Schedule effluent activities from Monday to Thursday to avoid odour

immediately before the weekend.

• Spread effluent in the morning to take advantage of warming conditions which help disperse the odour.

• Avoid spreading when the wind is blowing towards the neighbour

• Let the neighbour know when you are planning some activities. If they know they are likely to be more accommodating (and appreciative of your thoughtfulness). They may be planning an outdoor event in which case you might be able to reschedule spreading to another day.

• Note, it can take a couple of days for the odour to disperse after spreading.

If a neighbour complains about an objectionable odour or you notice some issues yourself you must investigate further. This is not generally a problem that disappears quickly.

What is the problem? Often the main culprit is the effluent storage pond although it does pay to check that there’s not a problem with effluent stored in the mainlines. This can happen if it’s been a significant time since you last irrigated. Article - DairyNZ

Odour issues can also be a regional council compliance concern if offensive or objectionable odours are detected beyond the property boundary.

Don’t apply effluent to saturated soils

APPLYING EFFLUENT

to saturated soils is prohibited, and if a farmer is found to be in breach of this rule, they could face enforcement action.

When the soil is saturated, the pores within it (gaps between soil particles) are filled with water.

Any effluent applied during these conditions is likely to pond and run off or leach through the soil or into tile drains, rather than being absorbed and taken up by the plants.

So, how do you know if the soil is saturated? A simple squelch test can tell you, according to Otago Regional Council.

• Step on the soil. If your boot mark fills with

water, the soil is saturated.

• Check your council website to see if you have a monitoring site nearby.

• A hand-held moisture meter is useful. However, you need to

test it in the soil in a range of conditions (dry–wet) so you see what reading to use for saturation.

Ponding occurs when the effluent, solids, and liquids that are applied

to land stay on the surface as a pond or puddle rather than being rapidly absorbed into the soil.

Ponding of effluent results in runoff and leaching into waterways and groundwater aquifers

and is a prohibited activity in the Otago Water Plan.

What causes ponding?

• Too much effluent is applied to land, or it is applied too quickly for the soil to absorb it.

• Effluent being applied when the soil is saturated.

Once the soil is squelchy under foot or at saturation point, it’s too late to avoid ponding and runoff. Irrigate only when there is enough soil water deficit to absorb the applied effluent.

If ponding or runoff occurs when there is a soil water deficit, it means you are applying too much effluent or applying it too quickly.

Applying solids, sludge, muck and slurry to paddocks must be treated the same as liquid effluent.

The same goes for effluent being applied

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Good practices include timing: Do not apply sludge, muck and slurry solids to soils that are at or near saturation. Apply it to land when the grass or crops are able to take it up quickly and use it when soil moisture levels are low, and soil temperatures are warmer. Keep the application well away (at least 50 metres) from waterways. Apply it as thinly and as evenly as possible. Do not dump large piles of muck onto paddocks. This creates a concentrated patch of effluent, or ponding, which is prohibited.

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Freshwater crayfish still around

THE PRESENCE of koura (freshwater crayfish) in the Kakahu River, South Canterbury, was one of the highlights of eDNA monitoring and biomonitoring (periphyton, macroinvertebrates and fish) carried out in the Kakahu River in March 2024.

Opuha Water Ltd has just published its most recent quarterly water quality report which focuses on eDNA sampling and biomonitoring undertaken in the Kakahu River in January.

In the report, Opuha Freshwater Specialist Dr Jared Panther says the finding koura eDNA is significant as local anecdotal reports had suggested the threatened species was no longer present in the Kakahu.

“But it was found upstream and downstream of the Opuha Water discharge point into the Kakahu River, including upstream and downstream of the gorge. Kōura are more active at night and usually seek shelter from predators during the day, which is one reason why they are not easily observed in waterways during daylight hours.”

Panther says that eDNA for freshwater mussels, longfin eel, shortfin eel, upland bully, common bully, Canterbury galaxias, torrent fish and brown trout was also detected upstream and downstream of the discharge point.

Opuha Water publishes its quarterly water quality reports for Lake

Opuha and the wider scheme catchment to share with the community the results of the company’s extensive water quality monitoring program.

Key findings of the March Kakahu River studies included: eDNA monitoring

• Kōura, freshwater mussels, longfin eel, shortfin eel, upland bully, common bully, Canterbury galaxias, torrent fish and brown trout were all detected in the Kakahu River using eDNA.

• The ecological health of the Kakahu River was rated as either average or poor using the eDNA method.

Biomonitoring

• Macroinvertebrate community index (MCI)

scores in the Kakahu River were similar to the eDNA findings, with waterway ratings of good and fair.

• The quantitative macroinvertebrate community index (QMCI) scores in the Kakahu River were higher upstream of the discharge point compared with downstream, with waterway ratings of good and fair.

• Longfin eel, shortfin eel, upland bully, common bully and trout were caught in the Kakahu River. These fish were identified upstream and downstream of the discharge point.

• SLR Consulting concluded that the collective biomonitoring results from the survey and previous surveys do not indicate any consistent patterns or significant adverse effects of the consented discharge on the freshwater communities of the Kakahu River.

Panther says the three main ecological aspects of the survey investigated to determine if a measurable impact of the discharge could be discerned were: periphyton (material that grows on the surface of rocks on the bottom of a stream or river which provide habitat and food source for macroinvertebrates), macroinvertebrates and fish.

“The levels of periphyton cover in the Kakahu River in March 2024 remained below guidelines set by the Ministry for the Environment and Environment Canterbury

for thick mats and long filamentous algae.

“There was an increase in periphyton cover at the sampling site immediately downstream of the discharge point, relative to other sites, which could be due to a localised effect of the discharge but could also be due to other factors such as river works undertaken at the start of the irrigation season.

“However, there were no patterns evident in periphyton cover at the other downstream sites, which indicates there are no wider impacts of the discharge on the periphyton community.”

There were no significant statistical differences in the MCI scores between the site immediately upstream of the Opuha discharge and all downstream sites in the Kakahu River.

“Comparing the 2024 survey with the previous two surveys, there are no consistent patterns in macroinvertebrate community diversity, abundance or quality that would indicate any significant adverse effects of the discharge.

“Attributing a discharge effect is difficult, as different habitats in the Kakahu River will naturally give rise to different macroinvertebrate scores.

“High abundance and diversity of fish at sites downstream of the discharge indicate that the discharge is not adversely affecting the fish community.”

Surveys do not indicate any consistent patterns or significant adverse effects of the consented discharge on the freshwater communities of the Kakahu River. eDNA for species like longfin eel, was detected upstream and downstream of the discharge point.

Lifting water quality part of sustainability fund

THE A2 MILK Company (a2MC) is providing $440,000 to 18 farms across Southland, Canterbury and the Waikato in the third round of its a2 Farm Sustainability Fund in New Zealand.

Established in 2022, the New Zealand section of the Fund is a collaboration between a2MC and Lincoln University supporting farm projects that demonstrate an integrated approach to a sustainable future and have a meaningful impact across the community and environment.

Applications were open to farmers supplying A1 protein free milk to Southland-based Mataura Valley Milk, which is 75% owned by a2MC or Synlait Milk, which is 205 owned by a2MC.

Applications for the

current round of funding closed at the end of March and successful applicants were notified in mid-May. All applications to the Fund are evaluated by an independent Investment Committee, with each successful application able to receive funding of up to $35,000.

The independent Investment Committee is comprised of industry experts in regenerative agriculture, soil health, animal health and wellbeing and farming systems.

Evaluation was based on criteria aligned to The a2 Milk Company’s sustainability objectives and key priority areas including:

■ Lowering greenhouse gas emissions

■ Increasing on-farm carbon sequestration

■ Improving farm system resilience

■ Improving water quality and efficiency

■ Enhancing on-farm biodiversity

■ Improving animal wellbeing/health

■ Managing and improv-

ing soil health

The Fund received a record number of highquality applications, reflecting strong interest from farmers across New Zealand. Grants in the

current round have been made to projects including diverse riparian planting, alternative fertiliser use, diverse pasture implementation, wetland restoration and planting of trees to enhance biodiversity and provide shelter for animals.

Jaron McVicar, chief legal and sustainability officer at The a2 Milk Company says they are pleased that round three of the fund in New Zealand attracted so many applications from farmers to support their high impact projects.

“It is important to us that we continue to support dairy farmers in New Zealand through this initiative.”

Bevan and Jackie Jones, who farm in Southland and supply milk to Mataura Valley Milk have thanked the

fund. “We can now fasttrack initiatives that we’ve been wanting to progress for years.”

Their funded project involves planting native species and building a sediment trap to enhance water quality, promote biodiversity and sequester carbon; to provide shelter for the animals; and to create a picturesque landscape.

Eion Young, who also farms in South Otago, says they are pleased to receive a grant for an extension of a project that they received an award for in the previous round.

“Our project is a trial using alternatives to nitrogen fertiliser. We’ve engaged contractors to help implement and measure the changes to pasture and their impact on the farm business.

“We’re excited about the positive results from the first year and look forward to continuing the project to understand the long-term trends and how this could benefit our farm.”

Investment committee member John Reid says it’s an honour to be involved in a fund that can truly make an impact across dairy farming in New Zealand.

“The quality of applications and the deep interconnected nature of environmental function across a number of the projects serves as a testament to farmers and their long-term vision for enhancing the sustainability of their farms.”

Reid is a Senior Research Fellow at the University of Canterbury’s Ngāi Tahu Research Centre.

Bevan and Jackie Jones, Southland, say they can now fast-track initiatives that they’ve been wanting to progress for years.

Sustainability remains a focus

A MAJOR focus for Fieldays in recent years has involved responding to the agricultural sector’s pressing challenges of environmental sustainability, climate mitigation and food production.

Along with providing a platform for showcasing innovations and critical conversations to tackle

these issues, this week’s event will see the return of the Fieldays Sustainability Hub.

The Hub aims to provide easy access to information about sustainability, with engaging activities and sessions to stimulate conversations about better environmental outcomes.

Waterways and water quality will be a key feature of the Sustainability Hub.

“We are excited to see the evolution of the Fieldays Sustainability Hub for its second year,” says Steve Chappell, Fieldays programme manager.

“We’re asking our visitors to stop by and we’re

posing everyday questions, such as, do you know where your household chemicals end up or how to protect your planting from predators? We will also have experts on hand to answer those questions”, says Chappell.

The ‘Talk to an Expert’ sessions feature specialists in the sustainability field sharing their experience and advice on a range of different topics including waterways, soil health, predators, biodiversity, land-use, power usage, agri-finance and much more.

“We are collaborating with new supporters such as Waikato Regional Council and mana whenua Ngāti Hauā Mahi Trust, who are helping to welcome and converse with our visitors. Our Land & Water, AsureQuality, Lincoln Agritech, QCONZ, Predator Free NZ Trust, Tyre-

wise, Powerhouse Wind and Rural Energy are new to the Hub this year. They join returnees’ eClean Envirotech and Instep Carbon and Sustainability Programmes to showcase real-life solutions and answers to sustainability questions our Fieldays visitors might have,” says Chappell.

The Hub will also feature virtual reality experiences and interactive activities to educate visitors on environmental sustainability topics to encourage discussions and influence positive changes in the sector with the future in mind.

Alongside the hub, the Fieldays Sustainability Trail, accessed via the map on the Fieldays App, will lead visitors to nearly 40 other Fieldays exhibitors demonstrating their sustainability practices, products, and initiatives.

Fieldays is also con-

tinuing its own work with New Zealand-based company instep, which has supported a sustainability programme to reduce Fieldays’ carbon footprint since 2012.

“Careful messaging and eco-friendly initiatives help educate our visitors on waste recycling, and our partnership with Closed Loop helps us collect and separate waste streams,” says New Zealand National Fieldays society community & sustainability executive Janine Monk.

In the lead-up to this year’s event, Monk has also worked directly with exhibitors to set sustainability goals and educate them on waste reduction methods.

“I held an online educational session with our food vendors. It was a chance to share waste reduction ideas and work together to get everyone

on board our sustainability journey,” she says. Sustainability is front of mind in the Exhibitor Site Awards with the judges looking for businesses who demonstrate environmentally responsible behaviour.

Previous winners of the Commitment to Sustainability Award and returning food vendor Deejays Gourmet Griller has praised Fieldays for its proactive approach to event sustainability.

The returning Fieldays Sustainability Hub is joined by the new Fieldays Rural Advocacy Hub, and other returning favourites - Fieldays Innovation Hub, Fieldays Careers Hub, Fieldays Hauora Taiwhenua Health & Wellbeing Hub, Fieldays Forestry Hub, and Fieldays Digital Futures.

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Blender backs agri-tech startups

PRODUCT DESIGN and development consultant Blender says as part of its commitment to fostering innovation in agriculture and technology, it’s sponsoring the prototype category of the Fieldays Innovation Awards for the third year in a row.

“New Zealand is globally recognised as a leader in agriculture and technology, known for our problem-solving ingenuity and sustainable practices,” says Oliver McDermott, co-founder of Blender.

“We saw an opportunity to help innovators in this space take their ideas from prototype to market. Our goal is to support the commercialisation of New Zealand’s rich IP, putting it on the world stage.”

Blender says its involvement in Fieldays underscores their passion for supporting agri-tech startups.

“We believe in the power of New Zealand’s agri-tech sector to solve big problems relating to our food systems and climate,” McDermott says.

“By supporting the Innovation Hub, we aim to provide a platform for entrepreneurs and innovators to showcase their solutions and receive the support they need to succeed.”

Throughout Fieldays, several experts from Blender will be available at their stand in the Innovation Hub to offer advice, discuss ideas, and provide insights into the product development journey. Visitors

will have the opportunity to consult with Blender’s team, which specialises in everything from product strategy and innovation consulting to design, engineering and manufacturing.

Bovonic will be showcasing their product at this Fieldays after more than two years of development with support from Blender – an inno-

AUTO CALF FEEDERS SET FOR FIELDAYS LAUNCH

JFC AGRI, the family-owned manufacturer of agricultural products from Galway, Ireland, used Fieldays to launch its innovative Evolution range of automatic calf feeders, including the state-of-theart Evolution S4 Automatic Unit.

The Evo S4 Automatic offers advanced features and userfriendly technology, including a dual hopper system, each with a 30kg capacity, and dual mixing bowls. This allows the dispensing of two different types of calf milk replacers simultaneously, offering the flexibility to ensure each calf receives the precise nutrition needed for optimal growth and health.

Able to feed up to four calves simultaneously, with individual calf registration via RFID technology, the Control Unit manages each calf’s feeding schedule, with each animal able to be assigned one of seven predefined feed curves tailored to their nutritional needs and rearing objective, while also ensuring no calf exceeds its allocated feed amount.

Calves are monitored through a traffic light system, with any deviations in feed consumption highlighted for immediate inspection and historical feed performance recorded and displayed via dynamic charts on a 7-inch touch screen display, online or via the

Evolution App.

After attending Fieldays last year and hearing the insights of farmers from across New Zealand, JFC have adapted the Evolution for New Zealand farms and launched it at this year’s show.

“We’re thrilled to introduce the JFC Evolution range to the New Zealand market,” said Damian Concannon, evolution manager at JFC Agri. “It’s more than just a feeding system; it’s a game-changer for farmers looking to optimise efficiency, improve animal welfare, and achieve better results in calf rearing.”– Mark Daniel

vative solution for detecting mastitis in dairy cows. Developed by Liam Kampshof, Quadsense uses advanced sensors to measure milk conductivity from each teat, providing precise health insights. Initially showcased at Fieldays, the prototype is said to have received overwhelm-

ing interest from farmers, validating its market potential.

Partnering with Blender, Bovonic transitioned from a crude prototype to a polished, market-ready product.

Blender guided them through design, testing, and manufacturing processes, ensuring the device’s reliability and usability in real-world farm conditions.

“Blender had the manufacturing and production capabilities, as well as the expertise we needed. I had no idea how to even begin contacting manufacturers around the world, let alone ask the right questions or negotiate terms on minimum order quantities and pricing,” says Kampshof.

“The idea of having a partner that can guide you from start to finish has been a huge positive.”

With Blender’s sup-

port, Quadsense is now poised for a broader market release, bringing a transformative tool to dairy farmers.

Blender Design supports the Fieldays Innovation Prototype Award, given to applicants with early-stage prototypes that address potential agricultural market issues and have a solid business plan.

The award includes $10,000 cash, a machine learning kit, and $5,000 worth of product design and development services from Blender.

“To us, Fieldays is not just about showcasing what’s new in the market; it’s about peeking into the future of agriculture and technology,” McDermott says.

“We invite everyone to visit us in the Innovation Hub to explore the cutting-edge solutions being developed right here in New Zealand.”

Throughout Fieldays, several experts from Blender will be available at their stand in the Innovation Hub to offer advice.

Keeping a spring in farmers’ steps

AS CALVING season approaches, so does the increased risk of sprain and strain injuries for dairy farmers.

However, scientists and farmers have joined forces to find ways of avoiding these common injuries during spring, to help farmers keep farming when they are at their busiest.

DairyNZ’s three-year Reducing Sprains and Strains project set out to

understand the common causes of injuries and work with farmers to develop practical solutions to reduce them on New Zealand dairy farms.

At the Fieldays this week, DairyNZ stand will

be showcasing popular innovations from the Reducing Sprains and Strains project which were co-designed with farmers.

The Easy-Entry Calf Trailer Gate and Easy-

Access Calf Pen Gate prototypes which are now being produced by Kea Trailers and Gallagher, respectively will be on display at the DairyNZ site PC44.

Dr Callum Eastwood, DairyNZ senior scientist, explains that the overall aim was to reduce lost time and productivity and support farmers’ wellbeing, especially during calving.

The physical nature of farming means that even when health and safety is prioritised, preventable sprains and strains can happen. In 2022 and 2023, there were about 1500 claims, totalling $5-6 million to ACC each year.

Most injuries were to the back, often from calfrelated activities, including lifting heavy objects like calves, buckets, or bags of meal.

“Research has shown that sprain and strain injuries make up around 40% of dairy farm injuries, with the highest risk period during the spring calving season,” says Eastwood.

“We were focused on working directly with farmers, every step of the way, to understand the issues, and together innovate, design, test and refine product designs that were easy to use and worked for current farming practices.

“Our workshops involved farm owners, employees, health and

safety experts, engineers and other professionals with insights and experiences to help develop solutions that reduce risks around essential tasks.”

Following the initial designs, DairyNZ has worked with manufacturers to help develop and produce some of the successful solutions. This includes Kea Trailers who are now selling the popular Easy-Entry Calf Trailer Gate, and Gallagher who are taking expressions of interest for the EasyAccess Calf Pen Gate.

“The successful workshop concepts were built into physical prototypes with the manufacturers, and then tested and refined based on farmer feedback. It includes the calf trailer gate, which was intensively tested by farmers last calving season, then refined to ensure it is farm ready,” says Eastwood.

“New Zealand has many different farm types and so the solutions aren’t a one-size-fits-all. However, the project’s co-design approach, with farmer testing, feedback and refinement, meant the creation of tangible options for farmers to reduce these injuries onfarm.”

The project was funded by ACC’s Workplace Injury Prevention Grants programme, with co-investment from DairyNZ.

The Easy-Access Calf Pen Gate will be on display at Fieldays this week.