Dairy Farming into the Future

FEATURE SUPPLEMENT 25

www.age.co.nz Thursday, June 23, 2022

2022DAIRY FA R M I N G INTO THE FUTURE

Strong global dairy prices are expected to result in a record high farmgate milk price

Record high farmgate milk price predicted A record high farmgate milk price is likely this season, says the Ministry for Primary Industries in its latest six monthly report Situation and Outlook for Primary Industries June 2022.

Strong global dairy prices are expected to result in a record high farmgate milk price and strong dairy farm proÿ tability this season, the report says.

New Zealand’s all-company average milksolids payout for the 2021/22 season is forecast to be $9.30 per kilogram of milksolids.

This would be the highest farmgate milk price on record, bettering the previous highest farmgate milk price in 2013/14 by $0.83 per kilogram of milksolids.

The timing of this payout is crucial due to the challenges that dairy farmers are facing, the report says.

These include regulatory compliance costs, constraints around labour availability and, most importantly, increasing input costs, especially feed and fertiliser costs. Despite the high and rising input costs, dairy farm proÿ tability is estimated to be strong this season, the report says.

For a modelled average dairy farm producing 169,400 kilograms of milksolids in 2021/22, the $9.30 milk price will o° set the impacts of rising input costs and result in

operating proÿ ts of around $3.32 per kilogram of milksolids.

This is an estimated increase of $0.70 per kilogram of milksolids over the previous season.

It is important to note that, despite the milk price increasing by over $1.50 per kilogram of milksolids, operating proÿ ts are likely to have increased by only $0.70, the report says.

The high payout is likely to enable farmers to pay down debt and make investments needed for improving on-farm productivity and sustainability.

Next season’s farmgate milk price is forecast to be lower but still at elevated levels.

This is due to an expected decline in prices of the main reference dairy commodities that inform the milk price.

The farmgate milk price for the 2022/23 season is forecast to be in the range of $7.90 to $8.90 per kilogram of milksolids. As input costs are likely to continue increasing, the lower forecast payout puts greater pressure on farm proÿ tability next season.

In response, farmers are likely to have a strong focus on controlling costs and be extra cautious with their expenses next season.

The full report can be found at https://www. mpi.govt.nz/resources-and-forms/economicintelligence/situation-and-outlook-for-primaryindustries/

EFFLUENT - CUSTOM DESIGNS - Your Needs - Our Solutions - IRRIGATION

Irrigation/Solutions

All Pumping Solutions

Water Filtration/Pumps

Effluent Design/Ponds/ Storage Tanks

FOR All ENQUIRIES CONTACT US ON: FOR ALL YOUR ELECTRICAL AND PUMPING REQUIREMENTS Rural, Domestic, Industrial, Commercial

PH 06 379 7953

148 BELVEDERE ROAD, CARTERTON

Installation/Maintenance

26 FEATURE SUPPLEMENT

2022DAIRY FA R M I N G INTO THE FUTURE

Thursday, June 23, 2022 Wairarapa Times-Age

Farmers continue to deliver, despite the odds The lastest MPI primary sector report shows New Zealand dairy farmers have overcome the odds – despite rising input costs, labour shortages, fewer cows and less production they have still delivered for our national economy.

DairyNZ chief executive Dr Tim Mackle say MPI’s Situation and Outlook for Primary Industries report projecting the dairy sector will be worth $21.6b this year – trending toward $24b by 2026 – is a signiÿ cant milestone for farmers.

“Farmers really are being challenged right now. Input costs and sta° shortages are testing our farmers as we head into the busiest part of the year, when the impacts of stress will be felt the most.

“Farmers are also delivering on environmental work and implementing policy changes on

DairyNZ Chief Executive Dr Tim Mackle farms too,” said Dr Mackle.

management practices.

“So to hear that their work is truly delivering for New Zealand – and there’s a bright future for our food products – will buoy farmers as they reÿ ne their farm systems to continue delivering product that’s in demand.”

“Importantly, this bodes well for work to be done for climate change solutions. We are actively exploring technology solutions and today’s report sends a positive message just how well our sector does that.”

The report says farm management and advancing technology will help deliver increased on-farm productivity.

More importantly, Dr Mackle says the report is a reminder of the value of New Zealand’s primary industries to our national economy.

“Cow numbers are falling but the work being done by farmers to improve dairy cow genetics and adopt new technologies is expected to pay dividends.

“It’s a signal that our on-farm productivity can continue to thrive, thanks to advances in farm

“The work our farmers do daily to deliver a world-class product that is low carbon footprint continues to be sought-after.

“We know the primary sector is important to New Zealand communities and as a nation for

FEATURE SUPPLEMENT 27

www.age.co.nz Thursday, June 23, 2022

our quality of living. Our food and fibre products are in demand – and today’s report suggests this will only increase.”

Among the predictions in the report are:  Export revenue is forecast to increase 13 per cent and reach a record high of $21.6 billion in 2021/22 due to strong global demand and reduced supply from other key dairy exporting regions.  Milk production for the 2021/22 season is forecast to decrease 4 per cent and reach 1869 million kilograms of milksolids due to unfavourable weather conditions, rising input costs and labour shortages.  Strong Chinese demand and a reduction in milk supply from key dairy exporting regions, including New Zealand, are keeping prices high.  All dairy product categories except infant formula are forecast to outperform their five-year average in terms of export earnings.  Total dairy export volumes are forecast to decrease by 7 per cent for the year to 30 June 2022, driven primarily by a decrease in milk production.

The full report can be found at https://www. mpi.govt.nz/resources-and-forms/economicintelligence/situation-and-outlook-for-primaryindustries/

DairyNZ calls on young kiwis to grab their gumboots & ‘godairy’ Kiwis are being encouraged to join the dairy sector, as one-third of dairy farms seek to fill vacancies ahead of a busy calving season which begins in July.

Through a new GoDairy campaign, DairyNZ is looking to help recruit young Kiwis into dairy farm roles. Most young people enter the dairy sector in a farm assistant role and the campaign connects job seekers to the latest farm assistant vacancies across New Zealand.

DairyNZ strategy and investment leader Nick Robinson says the dairy sector offers job security and good career progression opportunities.

“Many existing skills are transferable to dairy farming and we welcome new people to consider a dairy career.

The dairy sector currently has around 4000 vacancies,” says Robinson.

Bay of Plenty farm manager Dayna Rowe started as a farm assistant in 2020 and quickly progressed to now lead a team of four.

Bay of Plenty farm manager Dayna Rowe.

“I love the flexibility of life on the farm and working with animals but mainly I’m motivated by the ability to problem solve and feel I’ve accomplished lots at the end of every day,” says Dayna.

“It has taught me so many practical skills and developed my leadership. I work with fantastic people and every day brings something new – it’s not just milking cows! I am excited to see where my career takes me next.”

Robinson says farm employers have taken a range of steps

to continue lifting the salary package and working conditions for their staff.

For more information about dairy farm assistant roles, visit www.godairy.co.nz/ gonow.

“That’s because they want to recruit good people but they also want to retain those who are committed to succeeding in our largest sector.”

FACTS ABOUT NEW ZEALAND DAIRY FARMING

The current staff shortage offers plenty of opportunity for young Kiwis to start on a good salary and be promoted into management roles. Farm managers can earn over $100,000. Becoming selfemployed as a farm owner or sharemilker is another option on the career ladder.

Many farms offer reasonably priced on-farm accommodation, which means no commute to work or daily travel costs, helping them save for future goals.

Farms in Otago, Canterbury and the top of the South Island/West Coast face the highest staff vacancy rates, according to DairyNZ data.

Dairy farm teams work closely with animals, help protect the environment, contribute to their local community and are making a difference to the future of New Zealand.

 Dairy makes a critical contribution to New Zealand and in 2021/22 is forecast to contribute approximately $47 billion of direct and flow-on income to the economy.  The sector employs 50,000 people. Of those, around 37,000 work on farms.  Kiwi dairy farmers already have the world’s lowest carbon footprint for onfarm milk production and are working to continue reducing their emissions footprint.  Over 6000 dairy farms have a Farm Environment Plan and are implementing strategies on the farm to reduce their environmental impact. By 2025, all farms will have a plan.  New Zealand is recognised for its strong reputation for animal welfare and farmers are focused on continuing to improve practices.

COTTER & STEVENS Trusted since 1949

Sharyne Wimsett Senior Associate, B.B.S., C.A.

( WON’T GIVE YOU THE RUNAROUND )

at MCI & Associates,

we’ve trained to help you reach your best

• • • •

Electricians Water pumps Water treatment Milking equipment

35 Jellicoe Street, Martinborough Phone: 06 306 9491 | office@cans.co.nz

Did you know?

We do Plumbing AND Electrical Residential and Rural, Wairarapa-wide

FARMS/ LIFESTYLE

HOUSEHOLD

•

Talk to us today or visit us at:

w w w.mcia.co.nz

Dannevirke: (06) 374 7059 Pahiatua: (06) 376 7476

• • •

Gas hot water installs Hot water cylinders Woodburner installs Electrical

• • •

Water tanks & Troughs Pumps, UV systems & Water treatment Irrigation

06 379 5239 | sales@cooperfs.net 12 Broadway Carterton 5713

DAIRY SHEDS

• • •

Cup removers & Swing arms Effluent designs Full dairy shed installs (platforms included)

28 FEATURE SUPPLEMENT

Thursday, June 23, 2022 Wairarapa Times-Age

2022DAIRY FA R M I N G INTO THE FUTURE

He Waka Eke Noa a better solution to reduce agricultural emissions The primary sector’s recommendation to government, through the Primary Sector Climate Action Partnership – He Waka Eke Noa (HWEN) – is a better solution to pricing agriculture emissions, according to DairyNZ. DairyNZ is one of 11 primary sector and M˜or i farming organisations involved in HWEN, which this month (June) released its recommendations report outlining a credible pricing system, as an alternative to the NZ Emissions Trading Scheme (ETS).

“The HWEN partnership recommends a farm-level split-gas levy with built-in incentives to reduce emissions and sequester

DairyNZ chairman Jim van der Poel. carbon, starting from 2025. It’s a win-win that will achieve the best outcomes for farmers and New Zealand,” says DairyNZ chairman Jim van der Poel.

“As a sector we fought really hard for this opportunity to develop a better solution after the Government passed legislation to put agriculture into the NZ ETS. “Unlike the ETS, the HWEN system will reduce emissions, and recognise and incentivise on-farm actions. It will invest in R&D to ÿ nd new solutions, building on the

already signiÿ cant primary sector investment – including by dairy farmers, via DairyNZ.” The HWEN system is expected to reduce methane emissions by between 4 to 5.5 per cent.

Alongside other actions under way to reduce emissions, HWEN would help achieve methane emission reductions of 10 per cent, in line with the legislated target.

“Crucially, the He Waka Eke Noa system would enable farmers to continue running successful businesses, which means we

G N I T R A E R T T N URAY S I N YOOD W O IS OOKO T M H B EM E D T D Aaron George Dealer Principal / Sales 027 205 6732

Graeme Garrity Construction / Sales 027 208 2664

Zac Chandler Sales 027 883 8976

Wairarapa 307 High Street 06 370 8240

FEATURE SUPPLEMENT 29

www.age.co.nz Thursday, June 23, 2022

Deadline nearing for submissions on dairy animal welfare

continue contributing to our families, the economy and local communities,” says van der Poel.

“A collaborative governance structure will give our sector representation in levy price setting, where the goal will be prices kept as low as possible while still meeting our commitments, and adjusted as needed.”

Dairy farmers have until at 5pm on Thursday 30 June to provide DairyNZ with written feedback on key proposed changes to dairy animal welfare.

Special thanks go to the thousands of farmers who engaged with the process and gave robust feedback during our roadshow meetings, says van der Poel. “We have a stronger proposal as a result.”

HWEN takes a split-gas approach, which farmers asked for. It will apply different levy rates to shortand long-lived gas emissions recognising that methane, as a short-lived gas, has a different warming impact than long-lived gases such as carbon dioxide.

Unlike CO2, methane only needs to reduce and stabilise, rather than go to net zero.

A wider range of on-farm sequestration will be recognised than the ETS. And there is an option for early adopters to be recognised for sequestration established pre-2008, if adequate evidence is provided.

“Pricing under HWEN doesn’t start till 2025, so we have time as a sector to prepare.”

The National Animal Welfare Advisory Committee (NAWAC) has reviewed the existing code of welfare for dairy cattle and is consulting on updated minimum standards and best practice guidance as well as recommendations for regulations.

Fewer southerlies predicted for over winter Above average temperatures and less cold spells are predicted for Wairarapa this winter.

In NIWA’s seasonal climate outlook for June to August, it says temperatures are most likely to be above average (55% chance). A predicted lack of southerly winds will likely reduce the frequency of cold spells, although NIWA did predict a colder-than-average period in mid-June.

Rainfall totals are about equally likely to be near normal (40% chance) or above normal (35% chance). Seasonal rainfall patterns may be irregular with longer dry spells interspersed with heavy rainfall events, the latter possible during July.

The key areas of change include (but are not limited to) body condition score, intensive winter grazing, shelter, provision of lying surfaces and limiting time on hard surfaces, calf rearing and end-of-life management. Some of the changes proposed could be significant for our sector.

DairyNZ is reviewing the proposed changes, considering the relevant science along with practical implementation on-farm, and has been working closely with farmers and dairy stakeholders in developing its positions to make a submission. It has been welcoming farmer input including with their written feedback on the key proposed changes until June 30.

DairyNZ also encourages farmers to make their own submission, and has been working on a template that farmers can use in a submission to MPI. It will be available to all farmers no later than two weeks before the deadline. To view the proposed new code of welfare for dairy cattle and the regulations, and to make a submission, visit the MPI website www.mpi.govt.nz Source: https: www.dairynz.co.nz

Soil moisture levels are most likely to be above normal (50% chance) while river flows are equally likely to be near normal (45% chance) or above normal (45% chance).

B.W. O’BRIEN & CO. LTD. Refrigeration Air conditioning & Heatpumps For all your Farm Refrigeration Needs On Farm Vats, Walk-in Chillers & Freezers, Dairy Refrigeration 138 Dixon Street, Masterton Ph: 06 378 2288 | Mobile: 027 442 5022 Email: office@bwo.co.nz www.heatpumpswairarapa.co.nz

SUBSCRIBE AND

SAVE Delivering you local news, opinion & sport.

6 days a week with free home delivery.

Call 06 370 0975 or email circulation@age.co.nz

Your locally owned newspaper

30 FEATURE SUPPLEMENT

Thursday, June 23, 2022 Wairarapa Times-Age

2022DAIRY FA R M I N G INTO THE FUTURE

Joint dairy research facility in Manawatū boosts on-farm research Work is close to completion on Massey University’s Dairy 4 Farm, after the university partnered with AgResearch to boost on-farm research capability and facilities in the lower North Island.

The facility will enable greater interaction between sta˜ and students of Massey and AgResearch, while also providing scope for a range of independent trials to operate at any one time.

The Dairy 4 Farm, adjacent to Massey’s Manawat° campus, has approximately 600 spring calving cows and is the largest of the university’s two farms.

Professor Paul Kenyon, Head of Massey’s School of Agriculture and Environment, says the new facilities will enable detailed research projects on the farm to be carried out at the same time as usual operations.

“The new facilities will boast two rotary milking platforms which will allow detailed research projects to take place alongside the farm’s daily operations.

“Other new facilities include a covered veterinary area for individual cow measurements and a multi-lane feed pad to enable di˜ erential feeding to various

MF GLOBAL SERIES

LOAD UP & POWER ON WITH HUGE SAVINGS.

The new Dairy 4 Farm facility groups of cows. There will also be an e˛ uent treating system, a data centre within the shed to store and manage research data, a teaching room and a biosecurity station.

“The partnership with AgResearch will help Massey build on its reputation of contributing worldleading pure and applied research, in partnership with industry, on matters that are of national and international interest including environmental impacts of climate change, biosecurity issues, animal welfare issues and economic threats posed by innovations in food production,” Professor Kenyon adds.

AgResearch Science Objective Leader and Principal Scientist Dr David Pacheco says it is rewarding to see the progress at the farm after the decision several years ago to invest with Massey in its development.

“With the expanded facilities available to us at the Dairy 4 Farm, we will be able to grow our science in critical areas such as greenhouse gas research, animal nutrition and health, through to

ÿ nding ways to increase the value of New Zealand’s dairy products,” Pacheco says.

“Our partnership with Massey means we can make the most out of combining our resources and expertise, while the close physical proximity of the farm to our respective facilities in Palmerston North makes everything simpler and more e˙ cient.

“That close collaboration also means together we can develop the next generation of researchers to tackle the complex issues that New Zealand and the globe is facing. All of this beneÿ ts our dairy industry in New Zealand, and ultimately New Zealand as a leading international dairy producer.”

The Dairy 4 Farm is well known for its research into nutrient losses on heavy soils and collaborative work on partial housing systems for dairy cows.

It has been operating for approximately 46 years and complements Massey’s Dairy 1 Farm - a 260-cow farm beside the Manawat° River.

AV DYN AIL A 4 AB TR LE AN IN SO SMIS ME SIO MO N DE LS

!

FINANCE FROM

0.99%

*OFFER ENDS 30 JUNE 2022. conditions apply CONDITIONS APPLY

A utility tractor like you've never known before. The MF Global Series has been re-engineered to meet the needs of present and future farmers.

With the Global Series, Massey Ferguson has listened to you at the heart of the design phase and taken the concept of a utility tractor to redesign and re-engineer from the ground up. Manufactured to exact standards, MF Global Series tractors are purpose built in the latest state-of-the-art facilities, combining the very best of today's technologies with comfort, simplicity, reliability and quality. No other range on the market today offers such an array of build specifications and accessories, all designed to help tailor your machine exactly the way you need it for your farming operation.

300 High Street, Solway, Masterton Shorty 027 294 5010 • James 027 307 2158 06 370 0390 •

www.tfmtractors.nz

GREEN HARVEST