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We’ve got you covered june 10, 2014 Issue 314 // www.dairynews.co.nz

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Industry needs better qualified people. Page 5 fed’s new top dog

Graham Smith takes over Page 6

See page 14

june 10, 2014 Issue 314 // www.dairynews.co.nz

CARBON TAX Greens under fire for proposing tax that will put farmers out of business . PAGE 3

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Dairy News june 10, 2014

news // 3

Greens tax plan rebuffed peter burke peterb@ruralnews.co.nz

Dairying a clear winner over hort. PG.35

Dung beetles are coming. PG.38-39

THE GOVERNMENT has rebuffed a Greens claim that the country cannot subsidise the dairy industry’s greenhouse gas emissions. Even the Greens possible coalition partner Labour is concerned that dairy farmers are being singled out. Green Party leader Dr Russell Norman told Dairy News the industry is big enough and strong enough to pay its own way without being subsidised by taxpayers. His comments follow the release of the Greens climate change policy in which they propose to charge dairy farmers $12.50 for every tonne of carbon dioxide they produce. But the Minister for Primary Industries Nathan Guy has described this as a “mad cap scheme” – a

tax for being successful. “The Greens plan for reducing emissions will put farmers out of business. New Zealand is the most carbon efficient dairy and pasture based economy in the world and we are investing $45 million out to 2016 in the Global Research Alliance which is what New Zealand proudly set up,” he told Dairy News. “A huge number of countries have signed up to this and we are working on a lot of projects together to do with pasture based livestock systems, soil carbon and nitrogen cycling.” Norman says the country’s greenhouse emissions are expected to increase by 50% over the next 10 years, that climate scientists say New Zealand needs to dramatically cut its emissions and that economists say the best and cheapest way is to put a price on greenhouse emissions. “Our policy… is $25 a tonne for everyone except dairy which is half that at $12.50 a tonne…. Emis-

mixed message for farmers – feds

Mixer wagons gaining ground. PG.56

News ��3-23 Opinion �� 24-25 Agribusiness �� 26-31 Management �� 32-41 Animal Health ��42-48 south island dairy event �� 49-50 Machinery & Products ��52-58

FARMERS WILL be confused by the Green Party’s decision to abandon “the world’s most stringent emissions trading scheme” in favour of a carbon tax, says Federated Farmers climate change spokesperson Dr William Rolleston. The Greens are sending mixed messages to the primary industries, he says. While it is true that biological emissions account for half of our emissions, we must note that some 90% of the food we produce is exported, says Rolleston. “Climate change does not end at New Zealand’s borders, yet New Zealand’s role as a net exporter of food in a world of increasing food shortage rates barely a mention. “Penalising our farmers for being the world’s most carbon-efficient will only reduce production and that production will

be picked up by less productive farmers offshore. This apparent paradox is a concept the Greens are struggling to grasp: penalising New Zealand farmers will increase global biological emissions.” Rolleston says while the Greens say sheep and beef biological emissions will be initially excluded, that seems like a sweetener. It may be designed to drive a wedge between the farming sectors. “The reality is sheep and beef farmers would still pay what they are paying now under the ETS; making them pay later would only be a matter of twiddling the regulatory knobs. “As it stands, they are telling us ‘you will be taxed for being successful but given a break if you are less so’. “That is not a good aspirational message to send,” Rolleston says.

Greens leader Russell Norman says dairy should pay for greenhouse gas emissions but he’s getting little support from other politicians.

sions from dairy have doubled since 1990 so there needs to be price signal because currently there isn’t one. As for sheep and beef, we have left them out for the moment because emissions from them have dropped significantly from 1990 and because they are economically vulnerable at the moment.” Norman says the cost of the carbon tax is 8c/ kgMS which, based on the $8.40/kgMS payout is just 1% of the total payout. He denies the Greens are picking on dairy farmers and says they are treating them better than ordinary families. Labour agriculture spokesman Damien O’Connor says while he has yet to fully study the Greens policy, he is concerned dairy farmers are being singled out. He says if anything the proposal should be spread across the whole agricultural sector so as not to give distorted signals. “It’s their proposal policy-wise and of course any policies would be open to discussion and negotiation at the point at which a coalition might be arranged. The reality of MMP is that nothing is absolute in terms of policy. In the next few months there will be many proposals put out and there is no point in getting too excited about them.”

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Dairy News june 10, 2014

4 // news

AgResearch ‘not bleeding talent’ peter burke peterb@ruralnews.co.nz

AGRESEARCH CHIEF executive

Tom Richardson denies claims that his organisation is “haemorrhaging scientists” as a result of a massive restructuring to locate most staff at campuses near Massey and Lincoln universities. Richardson told Dairy News such claims have no basis in fact and AgResearch has low staff turnover. He says in the last three years staff “voluntary” turnover has not exceeded 10%. However he concedes that in the next three-four years, as the restructuring takes effect, more people will leave, though he predicts other scientists will be attracted to facilities to be built at Massey and Lincoln. According to Richardson, the long lead time into the final changes taking effect, and some flexibility within that time frame, will help retain scientists who might otherwise leave. He says having such a large window of time gives families more flexibility about when might be their best time to move. AgResearch will accommodate those who want to shift before the final move

AgResearch chief executive Tom Richardson says the SOE is not losing scientists.

date in 2017, he says. “But this is not going to work for all our staff. 24% of staff proposed for relocation are over 55 now and 10% are over 60. For some of those staff, moving at this stage of their careers is really tough and we are working with those guys and others for whom the move simply won’t work. “We know some people will leave

and what we have to do is make the best use of this long window to make it work for as many of our people as we can.” Richardson says the long lead time means AgResearch has been able to take into account other changes taking place in the ag science arena such as the restructuring of LIC and Lincoln University and the results of recent science funding policy changes. AgResearch is now working on the plans for its new facilities and at Lincoln a collaborative approach has been taken with other partners, Richardson says. “At Lincoln there are a large number of scientists and we’ve got a chance to do something different for onfarm agricultural science…. Lincoln facilities are in an appalling condition and we have a desperate need to rebuild. But rather than rebuilding in our own style and patches we committed over a year ago

to the five core partners – DairyNZ, Landcare, Plant and Food, Lincoln and Agresearch – investing in that campus in a joined-up way.” Richardson says the other hub at Massey also offers new opportunities with the emphasis on food, and the vet school with animal health and welfare work. “Farmers should expect a couple of things from AgResearch. We know what science should be done and increasingly we are getting good feedback from their sector representatives – that our strategy reflects their strategy…. “Increasingly we are hearing that

[the emphasis] is not so much genetic science or nutritional science or animal welfare science, but how these things might roll up into a farm system that I as a farmer can do something about, especially given the new environmental drivers. “So Agresearch needs to pull together better so that when we go to farmers we’re not just talking about the latest forage or sheep geno, but rather we are thinking more systemically – does this work on a farm? The big message for us is collaborate much better across the sector because it needs to work on farm.”

flock house farm sold AGRESEARCH HAS sold its Flock House farm near Bulls to Rangitikeibased Iwi Nga Wairiki - Ngati Apa for an undisclosed sum. Settlement was made on May 30 and new managers have taken over. The 1100ha property has a 332ha dairy unit and a 768ha sheep and beef unit. Flock House was a training farm until the late 1980s, and the central campus was subsequently sold. The farm has been used for science purposes by AgResearch, but chief executive Tom Richardson says much of it is now surplus to requirements except for 88ha to be retained for research.

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Dairy News june 10, 2014

news // 5

Better-qualified people needed on farms

New mobile spectrum good for farm data

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do business in emerging markets. Food safety, risk management, farm systems, IT, financial skills and environmental management will also be at a premium. DairyNZ chairman John Luxton says the dairy industry’s lack of ‘mainstream appeal’ must be turned around. He says action is now being taken to meet the skills shortage challenge highlighted in MPI’s report. DairyNZ and its partners are going out to schools to encourage young people to choose agriculture as a career, Luxton says. Scholarships for university graduates and support for other training schemes are in place and there are schemes to help farmers plan their careers. “It’s not just the numbers that will challenge us but the big lift in skill levels we’ll need to drive our sector forward. “What’s new in this report is the evidence of a big lift coming in employment in the agribusiness service sector and the processing

PONTOONS

The dairy industry is seeking more better qualified people on farms.

side of dairy. “The qualifications most in demand are likely to be in agriculture, environment, engineer-

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A WAIKATO dairy farmer and three service providers are using high speed 4G data connectivity to sample efficiency and innovation gains attainable using mobile communications, reports Telecom. All are accessing Telecom 4G on a 700 MHz spectrum in a trial the company started late last month with Huawei Technologies. New Zealand is one of the first countries to use the 700 MHz band freed up by the switchover to digital television, reallocating it instead for mobile broadband usage. Though the Government has not yet finished auctioning the 700 MHz spectrum, the Ministry of Business, Innovation and Employment has approved temporary use of the spectrum for trial purposes. Involved with the farmer, Bruce Thomas, are LIC, Anexa Animal Health and QCONZ. Their role is to help him with animal health, pasture conditions and farm dairy compliance. Telecom reports Thomas as saying it will save him time especially during calving. “LIC’s pasture app saves us about 15 minutes each walk. The opportunity to enter data once is pretty appealing. The new phones are faster at uploading and downloading, meaning we can do this on farm.” Thomas is trialling three LIC Minda mobile apps to access and record farm and herd data. LIC chief executive Wayne McNee says Telecom’s new 4G network will support the technology LIC is developing to suit farmers’ needs for information, compliance and reporting. “Our software and app developments’ success will depend on rural access to fast data and broadband. The 700MHz spectrum will [help provide] this access.” Anexa Animal Health head vet Andy Collier is trialling Telecom’s 4G over the 700MHz spectrum. He is reported as saying on-farm wireless broadband will help vets in their day-to-day work. “Access to client records and data from Minda and Fencepost will enable vets to retrieve important herd information to assist with treatment decisionmaking and [herd performance planning].

THE DAIRY industry will need 2300 more, and better qualified, workers by 2025, says the Ministry for Primary Industries. In a report on the capability of the primary sector, including dairying, MPI stresses there will be more jobs – fewer for the unskilled and more for people with higher qualifications. Jobs which once required no formal qualifications will in future. MPI says dairying now employs 48,000 and by 2025 will employ 51,100, of whom 29,100 will need formal qualifications, compared with 20,800 now. Dairying’s move to larger dairy farms accounts for the higher forecast numbers. The number of dairy farmers and farm managers will increase only slightly, but the demand for non-farm managers will increase by 15%. In sales, 20% more people will be needed. Dairying will need more skills in marketing, consumer branding and foreign languages to help

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Dairy News june 10, 2014

6 // news

‘Farmers first’ new rallying cry at LIC peter burke peterb@ruralnews.co.nz

FARMERS FIRST is the key outcome of LIC’s restructuring, says chief executive Wayne McNee. Changes to LIC’s senior leadership will see four senior managers exit the team and two new appointees from outside take up new and expanded roles. The team is cut from eleven to eight positions McNee says 58 roles in LIC were affected by the restructuring but 78 new roles will increase staff numbers by 20. The strategy that drove the staff changes is intended to put farmers at the center of the business while it grows, focusing on genetics, information, onfarm hardware and international business. “It’s a long time since LIC has had a good look at the way it is structured. Most of the changes

have been at the senior level of the business though some others were affected. We have given a lot more decisionmaking closer to farmers. So decisionmaking on product development is more focused on our teams that work with farmers – called territory management. We are trying to bring more of a solutions approach to the way we work with farmers rather than selling a series of different products.” McNee says LIC also plans to build its presence in the South island, recognising that there are now many more dairy cows there. “We have another eight roles in the South Island and we will put more in when the Lincoln hub is up and running. We are looking at having some R&D capability at Lincoln as well as at Newstead.” Of the two new senior managers, Simon O’Connor has been recruited from Fonterra to take over the new role of general man-

ager emerging markets and innovation. David Willis, formerly in sales and marketing roles internationally, will be general manager New Zealand markets. McNee concedes the changes have caused uncertainty among sales staff. But he believes most of those people were unaffected by the change and damage will be minimal. “Most of our business takes place starting a little later when the AB season starts, so the teams are relatively quiet at the moment. That’s why the changes were made to the business during the period when we are not so busy. The R&D teams weren’t affected to any great extent so those parts of the business working most directly with farmers weren’t impacted by the change. Most of the changes are at the head office side of the business.” McNee says farmers have told

Feds appoint new ceo

Wayne McNee

him they think LIC has a good range of products but he does not see the co-op taking full account of the types of farming systems the clients are operating.

FEDERATED FARMERS has appointed Graham Smith chief executive, succeeding Conor English, who has held the role for six years. Smith was chief executive of the Crown Research Institute ESR (Environmental Science & Research) between 2011 and 2014 and was general manager marketing at AgResearch from 2001 to 2004. Smith, an Australian has lived 13 years in New Graham Smith Zealand. Feds president Bruce Wills describes Smith as a highly accomplished chief executive who understands the context Federated Farmers operates in and is no stranger to the primary industries, having been a general manager at AgResearch. “The board is especially impressed by Graham’s commercial and people leadership skills and his background in science and innovation. He has managed an international technology commercialisation organisation and worked for several overseas food companies. He also has relationships across the political and primary industry sectors. This extends across the Tasman.” Smith will formally take over the role in July.

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Dairy News june 10, 2014

news // 7

Surprise at GDT price drop ANDREW SWALLOW andrews@ruralnews.co.nz

LAST WEEK’S 4.2% fall in dairy prices on the Global Dairy Trade platform surprised many analysts and disappointed farmers following signs the market slide was slowing. “It was a bit disappointing: I thought we’d turned the corner,” Federated Farmers Dairy chairman Willy Leferink told Dairy News shortly after the result was announced. Whole milk powder in particular was marked down, all but the near contract (July) falling between 6% and 12% to average US$3594/t. At that, Fonterra’s opening forecast

of $7/kgMS for next season looks vulnerable unless there’s a rally in markets, or the New Zealand dollar takes a dive. “At the current milk powder price and exchange rate it would go to under $6.50/kgMS,” Leferink commented. Provided it was still above $6/kgMS most farms should still make a profit, he added, but there would be an impact on the wider economy as discretionary expenditure would be reined in, if not stopped. “If you budget on over $6/kgMS I don’t say you’ve got rocks in your head but you are playing with fire if there’s not a lot of margin left for yourself at anything over $6/kgMS.” Westpac senior economist Anne

Boniface admitted the extent of the fall, particularly in whole milk powder, wasn’t expected. “There can be some volatility fortnight to fortnight between GDT events. Perhaps what we’re seeing is a bit of seasonality,” she suggested. A similar discount for forward positions – July wholemilk powder was up 6.5% at US$4103/t but December shipments were down 9.2% at just US$3616/t – was seen at this time last year, she pointed out. A possible explanation is buyers are waiting to see what the new southern hemisphere season will bring. “Perhaps they’re expecting New Zealand production to start increasing by then.” How China’s season is going, as well as Europe’s and the US’, could

GDT result summary

Ave price June 4

% change on previous

% change since Feb 4 peak

WMP

US$3,594/t

-8.5%

-28%

SMP

US$3,863/t

+2.1%

-18.6%

AMF

US$4,058/t

-5.0%

-27%

GDT average*

US$3,756/t

-4.2%

-24.5%

Commodity

also be having an impact, she said. Westpac still has a $7.10/kgMS forecast for next season “pencilled in” but last week’s result puts a “downside risk on that”.

Boniface says that forecast is based on whole milk powder averaging US$4000/t so there will have to be a lift in markets in the coming months if that’s to be achieved.

top terms of trade NEW ZEALAND’S terms of trade in the quarter to March were the highest since 1973, and dairy was “the top contributor on price,” Statistics New Zealand said last week. However, while dairy prices were up 2.3%, seasonally adjusted volume was down 4.3% to give a seasonally adjusted drop in dairy export values of 2.5% compared to the quarter ending December. Meanwhile, meat prices managed a 2.1% rise with volume also up 6.6% to lead the rise in export values. Meat volume shipped is at a new high,

5.3% above the previous peak which was in the September 2006 quarter. Contributing to the favourable trade balance was a 1% fall in prices for imported goods following a 2.7% fall in the previous quarter. Cheaper crude oil saw petroleum and petroleum products down 3.5%, the biggest contributor to the overall decrease. Import volume was up 2.3% following a flat December 2013 quarter but the trend is up, six consecutive quarters accumulating to a 14% rise in imports.

*Weighted average winning price of all commodities traded, not just WMP, SMP and AMF.

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Dairy News june 10, 2014

8 // news

Ice cream award winner a big hit in Muslim countries pam tipa pamelat@ruralnews.co.nz

STRICT MUSLIM countries are

among markets where the premiumbrand ice cream New Zealand Natural, made from Fonterra milk and cream, is a big hit. In Muslim countries where alcohol is banned, the New Zealand Natural parlours are meeting places, says Shane Lamont, executive director of the Emerald Group which makes New Zealand Natural. “We find the product does well in strict Muslim countries such as Bangladesh or Saudi Arabia where a lot of the entertainment is in shopping malls,” Lamont told Dairy News. “There’re no bars or the like so the young, affluent community congregate in shopping malls. New Zealand Natural can be a pastime and entertainment option.” They are also building their first site in Pakistan, due to open in October. “That’s exciting because we have been waiting a long time for the environment to become settled enough to make a start. We have had a partner there for three or four years.” New Zealand Natural English Toffee won the supreme award for a large manufacturer in this year’s New Zealand Ice Cream Manufacturers’ Association Awards. Emerald Foods also won the export ice cream category, with Private

Label Japanese Vanilla Ice cream and several other category awards. Lamont says New Zealand Natural ice cream is made solely from Fonterra liquid milk and cream. “Fonterra is our largest supplier for all our business needs. The milk comes from the South Auckland region, straight from the farm to us. We take fresh cream from Fonterra factories to bring up the cream content to make ice cream.” Emerald Foods, which also has five other ice cream brands, exports products to 32 countries; 25 buy the New Zealand Natural brand and that is “growing steadily”. Most of the growth is in China and South East Asia. The company opened a second parlour in Taiwan another is under construction. “The New Zealand Natural brand is in various products; in New Zealand we are in parlours and supermarkets. In Vietnam the bigger part of the market is supermarkets and in Fiji we are in a lot of five star resorts.” In Denarau the product is sold in all the five star resorts and in a retail complex. “In P&O cruises out of Australia we are on three ships, with more to come… into the Australasian market. They now have New Zealand Natural parlours on board which is pretty cool. “We continue to grow strongly in China. We are in 300 five-star hotels and still growing that channel well. We have not entered the supermarket channel in China yet. But that is a big opportunity.”

The brand’s appeal is “the clean green imagery of New Zealand”. “We are lucky enough to have New Zealand in our brand and that brings a lot of great connotations. It has obviously had a couple of bumpy spots recently with the goings on, but… long term our brand is strong, well supported and believed in.” Tourists in Australia and New Zealand discover the brand and want to take it to their home countries. “Bangladesh is an example of that: last calendar year some young entrepreneurs, MBA graduates, wanted to take New Zealand Natural to Bangladesh and that’s open

Shane Lamont with this year’s award haul.

and thriving now.” New Zealand Natural is set up in China as an infant formula under that name. They have an office in China which represents ice cream and infant formula, about 40 people working the ice cream and two working the formula. There’s a lot riding on the current situation for infant formula to China, Lamont says.

Food technologists develop the new flavours – an important aspect of being a premium brand. “They are always working on various new products and ideas from current customers, particularly in Japan. People like to see new product but it is balanced against the fact that in New Zealand vanilla, chocolate, hokey pokey and strawberry will still tend to be 80% of sales.

Technologist shortage strains capacity NEW ZEALAND needs more food technology graduates, says Shane Lamont. Higher value markets like Japan require a high level of technical development and input. A Massey graduate with a food technology degree, Lamont says not enough food technologists are graduating. Massey has the only pure technology degree in New Zealand and the graduate numbers are small, he says. “It is great for young people to do a degree that has opportunity immediately. The industry tends

to squabble over the graduates every year.” Emerald Foods has four food technology graduates and another who has worked with them in holiday periods is due to join them once she graduates. Such an intern system helps the graduates and the business and he is a “big fan of that”. “We have so much development on the go at one time it is always a stretch for us technically. “We put a lot of energy and resource into developing the Japanese market and Japan is technically demanding, precise

and challenging. But it is rewarding in the long term; once you get a customer started, you tend to stay with them for a long time. “It works in both directions: you need to be accommodating on the fluctuating costs we have in the dairy industry here. Sometimes you need to take a longer term view and margins will drop, then hopefully the dairy commodity cycle swings around and maybe you get to return to some healthier margins. “Japan is a long-term game and we are focused and dedicated on it.”

Dairy News june 10, 2014

news // 9

MPI on the right track - raw milk firm MARK HOUSTON, the

chief executive of South Island raw milk retail franchise Village Milk, says he supports MPI’s tiered approach to regulating farm sales. “MPI is on the right track,” he told Dairy News. “They’ve listened from last time and come up with a sequence of options.” Village Milk’s stringent testing means its franchi-

sees already go beyond what MPI is proposing, says Houston, who is keen to distance Village Milk from ad-hoc farm gate sales. It routinely tests for coliforms, E-coli, salmonella, lysteria, campylobacter, inhibitory substances and aerobic plate count (APC). “Everything that has issues for a human, we test for it.”

El Nino likely for winter NIWA IS forecasting El Nino weather for June to August, in which above-average rain would be more likely in the eastern North Island, but average or below-average more likely in the west of the north and the south and west of the South Island. Now is too early to say how strong the El Nino will be, NIWA says, because of equatorial Pacific conditions during May being borderline neutral to weak. May weather was particularly sunny in most of the North Island. Whakatane has so far recorded the most sunshine hours nationally. In the South Island many areas were much wetter than normal and, apart from a cold snap last week, they were much warmer. Most of the North Island was also warmer than normal but here rainfall was generally below par, though Hamilton was the wettest main centre for the month. www.niwa.co.nz

Village Milk’s Timaru franchisees, Stu and Andrea Weir, were recently blamed for an outbreak of campylobacter. Houston says while he accepts it was “reasonably probable” there was a link, he’s still not convinced, as only seven of 30 cases reported in the outbreak had drunk milk from the Weirs. “Only seven people affected out of 158L sold, which would have contacted about 400 consumers, so if it was the milk I’m surprised there weren’t 400 cases.” The 23 cases during the outbreak without a link to the Weir’s supply suggest another cause in the environment, he suggests. “It could have been some chicken, fish or the water supply,” he says.

Also, two weeks of milk tests at Weirs found no sign of campylobacter. “With hindsight I should have said ‘no way, it’s not us’,” he told Dairy News. Rubbing salt into the wound were media reports of a second milk-related food scare four days after the campylobacter story broke. These obscured the fact that Timaru school children who became sick – two severely enough to be hospitalised – had drunk raw milk from a regular factory-supply farm, not a Village Milk outlet. “The bottom line is that people get sick from [factory supply] milk because it’s full of cow shit.” One of six franchisees appointed during Village Milk’s two years of operation has already quit because it could not con-

Village Milk has five outlets selling raw milk.

sistently meet the company’s standards, Houston says. Now, only one of the five remaining franchises is a dual-purpose supplier, retailing through Village Milk and supplying a processing factory. “I’d be hard pressed

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news // 11

Lock it in! FONTERRA IS again inviting farmers to lock in a price for a percentage of their 2014-15 season milk. Furthering the guaranteed milk price (GMP) pilot scheme in the 201314 season, Fonterra is now offering farmers more flexibility to counter the effects of commodity price volatility and to give greater income certainty. For the 2014-15 season the co-op now offers a GMP on 60m kgMS: up to 40m kgMS is available in June, and up to 20m kgMS in December. There is also a new approach to determine each GMP and allocate the available volume. The co-op in late May forecast an opening payout of $7/kgMS for the new season which started June 1. Director of milk supply Steve Murphy says farmers looking for a GMP can now offer a percentage of their estimated milk production at one or more of five prices ($6.60, $6.70, $6.80, $6.90 and $7) at and below the forecast farmgate milk price. “The pilot last season attracted [so many takers] that we had to scale offers

back to 40% of the original applications. At the time, many farmers were disappointed that their quantity was reduced. “In the event of oversubscription this season, applications will not be scaled back pro-rata for all volumes of milksolids. Instead, we have introduced a new process so that farmers… can now have the flexibility to weigh up how many milksolids they are willing to offer at one or more of the five prices.” Once the applications close, the total kgMS offered by all applicants at each price will be totalled. Allocations will be made based on the prices at which milksolids were offered from the lowest price up and the GMP will be determined at the highest price at which the total quantity of milksolids offered reaches the specified limit. All accepted applications will receive the same GMP, the June GMP or the December GMP. However, even with this new approach, depending on the total milksolids offered at each price,

some farmers may not get all or any of the volume they offer. For applications made in June, farmers can apply to fix a GMP for between 10% and 75% of their estimated milk production for the 2014-15 season. Farmers have until 20 June to apply.

The second GMP opportunity will be available in December for production supplied December 1, 2014 to May 31, 2015. Applications can be made online via Fencepost or by phoning 0800 65Fonterra 65 68. director milk supply Steve Murphy.

LOOK FORWARD TO ANOTHER YEAR OF HEALTHY CALVES. (AND MORE MONEY IN YOUR POCKET.)

New website serves data to tablets A NEW DairyNZ website allows farmers access via

smartphone or tablet to data that can help raise farm performance. Eight websites have been merged to achieve this. “60% of farmers now have smartphones and want technical farm information while on their farmbikes or tractors and in the dairy shed,” says Andrew Fraser, DairyNZ brand marketing manager. “This comprehensive farming site can now be instantly accessed and easily used on a phone.” It allows ranging across, eg how to manage mastitis to getting employment contracts right for farm staff. DairyNZ’s latest dairy farmer survey indicates at least 30% of farmers use tablets. About 20% of the site’s traffic is via mobile devices, and the new website adjusts its layout to the screen size it is viewed on. “It gives access to decades of research and solutions or information for farm systems,” Fraser says. The consolidation of www.dairynz.co.nz has been huge and took 12 months. Last year it had 395,000 visits and 1.7 million page views. Features include calculators and filtering templates, seen in its bull search and cultivar selector tools. “Making these work for large and small screens required a total redesign of how they were presented.” Along with the improved look, a key change is the site’s navigation. “The site hosts information on every category of dairy farming. This adds complexity. So the new navigation means finding content from a smartphone or office will be more logical and intuitive.”

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Dairy News june 10, 2014

12 // news

Gong for top farmer PETER BURKE peterb@ruralnews.co.nz

Mike Barton

A FARMER who changed his farming system so as not to pollute Lake Taupo has been awarded a Queens Service Medal in the Queens Birthday honours.

SEE THE ALL

Mike Barton and his wife Sharon farm near Tihoi, west of Lake Taupo. They sought a way to reduce the leaching of nitrogen into the lake, yet still farm profitably. They ceased running breeding cows and finishing the progeny, instead taking in Charo-

lais Angus-cross weaners and producing their own branded ‘Taupo Beef’. They recently won the Ballance Farm Environment Award in Waikato for their efforts. Mike Barton told Dairy News of their surprise and delight at gaining a QSM. “The fact it was for

farming and the environment was the most satisfying aspect because we have tried to work on both issues and find common ground. You do this because you think it’s necessary or you want to do it and we did it for those reasons… to interrogate the costs of capping nutrients going into Lake Taupo and see if we could come up with a business plan at the end of it all.” Barton worked with

local farmers, Waikato Regional Council and scientists from AgResearch and Landcare Research to come up with a viable option. He is seen as role model for other farmers who must farm within environmental limits imposed by central and local government. Barton is in demand as a guest speaker at farming and agribusiness events.

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Dry cow applicator device tops A DEVICE that enables dairy farmers to more efficiently apply intramammary dry cow medications has won an award for its design. Simcro, in Hamilton, and Merial Ancare, in Auckland, jointly designed the device, a multi-dose intramammary applicator and magazine system. Merial Ancare launched it in New Zealand this year, getting positive feedback, it says. Simcro head of business development Rod Walker says the company is “delighted to receive this prestigious award. Innovative design gives our customers a commercial edge in challenging world markets”. The two companies says they challenged the design of traditional intramammary syringes, unchanged from their basic form in 30 years. “The design brief for this project was to develop a better, faster, more comfortable system for farmers to treat dairy cows with intramammary dry cow medications,” Walker says. The designers spoke to many farmers, learning that they wanted a complete cow treatment in a single magazine – a marked change from typical single-shot syringes. Instead of having to insert and depress a single syringe into all four quarters of each cow, Simcro has incorporated the cow treatment in a single, fourdose magazine. The companies say farmers find the multi-dose system reduces discomfort and stress for animal and operator, and that it improves treatment efficiency. “This is because it employs the whole hand in a natural squeeze of the handle, greatly improving mechanical assistance…. [Many] animals can be treated in a comfortable action that reduces repetitive strain injury. “Once the magazine is inserted into the applicator there is no further handling required. As the magazine is advanced, the caps are automatically disengaged.”

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1. COLLECT THE CODES & ENTER TO WIN

Collect as many tokens as you can from Dairy News during June and July and send them in to win. Entrants will receive one entry per unique token code submitted online or by post. BONUS CODE

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A bonus token and code will appear intermittently during the promotional period on Facebook, Twitter and in our e-newsletter. To get access to this bonus entry code: Like us on Facebook: www.facebook.com/DairyNews And/or, follow us on Twitter: www.twitter.com/Dairy_News And/or, sign up to our e-newsletter: www.ruralnewsgroup.co.nz/newsletter And/or, visit the Mahindra stand at Fieldays

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Dairy News june 10, 2014

news // 15

Top Maori dairy farm to be announced BY THIS Friday night the winner of this year’s Ahuwhenua trophy for the top Maori dairy farm will be known. Some 800 guests at an awards dinner at Tauranga will hear the news. Attending will be dignitaries and agribusiness leaders including Governor-General Sir Jerry Mateparae who will present the winner with the Bledisloe Cup. Also there will be the Minister of Maori Affairs, Dr Pita Sharples, the Minister for Primary Industries, Nathan Guy and the Chinese ambassador to New Zealand. Earlier this year three Maori trusts were selected as awards finalists, each facing rigorous judging including staging a field day to show the judges and other farmers their achievements. Two finalists – Putauaki Trust Himiona Farm and Ngati Awa Farms Ltd Ngakauroa Farm – are located near Whakatane; Te Rua o Te Moko Ltd is near Hawera. Ahuwhenua chairman Kingi

success in this area should not surSmiler says all the finalists show the prise anyone. However not too many fruits of working together. All have New Zealanders, including Maori, worked with smaller trusts to create are aware of the exciting developlarger and more economically viable ments taking place. We as Maori farms. This strategy will unlock vast and others who know about this tracts of Maori land that until now success need to get out and sell have not realised their potential. the message of our success.” “Maori agribusiness is now The Ahuwhenua Trophy a powerhouse of the New Zeawas first awarded in 1933 by land economy and has come of the Maori leader Sir Apirana age. Proof of that is that every Ngata and Governor-General day trusts and incorporations Lord Bledisloe. The inauguare besieged by an army of consulral 1933 competition was open tants, advisors and investors wantto individual dairy farmers in the ing to be part of the action. Waiariki land district and was won “Government itself has set high by William Swinton from Raukokore, expectations of Maori agribusiness Bay of Plenty. as part of its goal to grow the econThe competition has over time omy. The Ahuwhenua Trophy has undergone many changes been a significant catalyst in including having separate the growth and success of Awuwhenua chairman Kingi Smiler says all the finalists show the fruits of working together. cups for dairy and sheep Maori agribusiness.” and beef, the two being run Maori are now highly in alternate years. respected in the business commu- reckoned with, Smiler says. “Maori are very much at home nity locally, nationally and inter@dairy_news nationally and are a force to be in the agribusiness space and our facebook.com/dairynews

Repeat offender fined A COROMANDEL dairy farmer has been

fined $52,500 for illegally discharging effluent for three years – his second conviction for such offending. The latest case, brought by Waikato Regional Council, concerned events between May 2010 and May 2013, at a farm near Tairua, owned by Mark Fielden Ofsoske. Council staff inspected the farm on May 6, 2013 and discovered an effluent pond discharging dairy effluent directly into a waterway that ultimately leads to the Tairua Harbour. The farm was found to have been doing this since May 2010. Ofsoske had a conviction for similar offending from the mid-1990s. Hamilton District Court judge Melanie Harland, announcing her decision recently, said “given he had previously been prosecuted for similar offending (albeit some time ago) I am satisfied that his approach was lax to the point of showing a real want of care”. Council investigations manager Patrick Lynch says, “It is rare that we see offenders prosecuted more than once under the Resource Management Act. “We are using regulatory tools, including prosecution, to change unacceptable behavior,” he said.

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Dairy News june 10, 2014

16 // news

‘Stop treating us as environmental terrorists’ SUDESH KISSUN sudeshk@ruralnews.co.nz

Chris Lewis, new Waikato Feds president.

DAIRY FARMERS are not environmental terrorists, says Federated Farmers new Waikato president Chris Lewis.

The Pukeatua farmer, appointed last month, says most Waikato farmers are doing an outstanding job of environmental management, but sadly without due recognition. “No doubt some need to improve, but there

Are you prepared to take a hit?

needs to be better recognition that farmers are not environmental terrorists,” he told Dairy News. Lewis sees the environment as a big issue facing Waikato farmers, but they must balance environment, production,

profitability and farm management. “If you want to be still farming in 20 years you should be ticking all the boxes. Like me, other farmers are upgrading their effluent systems, undertaking nutrient budgeting and making farm environment plans; these will pay huge dividends. “But sadly the urban population doesn’t understand…. Five or 10 years ago we were probably not doing things as well as we should have been but there has been lots of infrastructure going up on farms in recent years.” On his farm, Lewis spent $200,000 on a screw press that seperates the solids from effluent, allowing him to fully use the effluent as a fertiliser. Effluent goes into a sand trap, then stirred in a 150,000L concrete tank before being pumped into the screw press separator; the liquid going to a holding pond for irrigation to paddocks close to the milking shed, and the solids scattered by tractor on 60ha further away. Lewis, who supplies Open Country Dairy, says the recycled effluent provides fertiliser for 220ha; the remaining 100ha gets fertiliser bought from Ballance. He opted for the solids separator because the effluent pond was filling with solids which blocked his sprinklers. He hopes soon to precision spray the

effluent. Riparian planting and fencing of streams are also on the agenda; last year he planted 880 native plants and this year plans 1800 plantings. “We have worked out what works and what doesn’t work well on the farm from the last planting,” he says. “It will take us up to five-seven years to get our streams fenced and fully planted but we are on the journey; 99% of drains and major swamps are fenced off. It’s the same as effluent management: every year we put aside money for upgrading until we have got best practice on the farm. “I couldn’t put my hand on my heart and say I have best practice but that’s our end goal…. It’s a journey, a five-year plan, but doable in three years allowing for a couple of years of bad payouts.” Lewis believes the focus on environmental issues will increase, especially by the regional councils. He agrees tough environment rules are necessary and points out the councils take to task those farms flouting the rules. But most farmers comply, he says. In Waikato only a couple of the region’s 3500 dairy farmers are prosecuted each year. “The bad apples get caught but let’s give credit to the majority of farmers who are compliant and respect the environment.”

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CHRIS LEWIS is “pretty excited” to be appointed head of Waikato Federated Farmers. The Pukeatua farmer says he enjoys representing farmers and ensuring they have a say at the decision-making table. Lewis has been a member of Waikato Feds for nine years, doing stints as Otorahanga dairy rep and vice chairman and chairman of Waikato dairy section. “I have farmed for 22 years and I’m passionate about all things farming. I am also passionate about the work we have achieved in Waikato to date and am looking forward to continuing the work as the provincial president. “I have a great relationship with the past three provincial presidents and know I have a wealth of knowledge and support to refer to. I greatly respect these guys and am grateful for the position they have left our province in.

Dairy News june 10, 2014

news // 17

Co-op champion takes the reins andrew swallow

FEDERATED FARMERS’ new

provincial president for Nelson, dairy farmer Martin O’Connor, says the region is well-placed on environmental issues but that doesn’t mean they’re off the agenda. Rivers in the region are “all fairly pristine” with no sign of degradation due to dairy farming and the only place where there is an issue, the Waimea Plain, has few dairy farms. “Obviously there are other sectors of industry that have a footprint.” Augmentation of the water supply to the Waimea Plain, and to the city of Nelson and Richmond town by way of the Lee Dam proposal, is one of the big issues, with the community split on whether it should go ahead. That includes some farmers and lifestylers in the catchment who are opposed as they do not believe they can justify the cost.

being an election year it will O’Connor’s own farm is be ‘bash the dairy industry’: 60km west of there in the it’s already started.” Motueka River valley where Linked to that industry he and wife Vicki milk image are staffing issues. 500 cows near Tapawera. He says he always tries to They’ve worked at all employ New Zealanders but levels in the dairy industry, finds it harder and harder including herd manager, lower order sharemilk- Martin O’Connor to find good people. “I’m not sure if it’s an industry ing, then 50/50 and, in 2007, ownership. “It was about the problem or simply that people aren’t time everything crashed,” comments brought up to work anymore.” In some areas the industry needs O’Connor ruefully. Budgets had to be reworked to “get its act together”, a few farms with the bank and while they “came “treating staff like a commodity” through okay” he says they’re only which does no-one in the sector any now getting over that and starting to favours. He says he’s “very much a co-op move ahead again. Helping this is capital left in the farm by way of a loan person” and is concerned at the number of non co-op competitors from parents. The dairy sector’s image concerns to Fonterra popping up all over the O’Connor. “We have a battle ahead country with no interest in paying to gain some measure of public con- farmers any more than the absolute fidence. We are often seen as being minimum they have to. “If we’ve not on the back foot the way we are por- got a strong cooperative like Fonterra trayed in the media and with this then we’re stuffed.”

Engaging with country, town NEW

FEDERATED

Farmers Manawatu-Rangitikei president James Stewart is keen to put the rural voice out there and tell the good stories of the industry. “We have a positive impact on New Zealand’s economy and its environment, which is often left untold,” he says. “As stewards of the land there is a lot of positive work that goes unseen and we need to cherish and celebrate it.” Stewart, elected three years ago as Feds Manawatu-Rangitikei’s dairy chair, replaces Andrew Hoggard. Before Stewart joined the Feds he was as a Fonterra networker. “I am a fifth generation farmer and have farmed on our family farm for the

farm the land. past 20 years,” he “I also want to says. help link the two “Originally parts of the comthe farm ran munity, urban sheep, then I and rural. There converted part are environmenof it to dairy, foltal meetings I’d lowing a brief stint in the tour- James Stewart like to be a part of, and host some ism industry as a commercial jetboat driver. of these onfarm so we can “I acknowledge the provide a better underincredible job Andrew standing of what is going Hoggard has done for the on in our backyard. “As the population province, and thank him for the his tireless service increases we are losing touch with the urban envito the community.” With the Horizons ronment and the younger Regional Council’s One generation. It’s hugely Plan at “a manageable important to keep them level”, he intends to main- educated about where tain communication and their food comes from, keep farmers up-to-date and community engagewith the bureaucracy they ment is where it starts. “I’m open and easy to face. “My job, as provincial engage with, and I’m keen president, is to help them to meet with anyone who do what they do best – wants to discuss issues.”

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Dairy News june 10, 2014

18 // news

Raw milk sale debate andrew swallow andrews@ruralnews.co.nz

MORE TALKS on the sale of raw milk to the public are underway, with MPI seeking feedback by July 8 from “anyone who has an interest in raw milk sales to consumers”. It follows a similar exercise in 2011 that attracted 1685 submissions and found a sector of the community wants to be able to buy raw milk for drinking, but more research was needed into the risks of illness from milk-borne pathogens. The latest consultation document highlights those risks, and an apparent rise in raw milk consumption. An MPI commissioned telephone survey of 1010 adults in April this year found one in twenty

currently consume raw milk and 57% had drunk it at some time. Nutritional survey data 19972009 indicates 1% of the population consumed raw milk regularly, up to half of those living on farms. MPI deputy directorgeneral Deborah Roche says urban people are five times more likely to develop campylobacter from drinking raw milk than those living on farms because they are less exposed to pathogens that occur naturally in a farming environment. However, as a result of the 2011 consultation MPI has ruled out prohibiting raw milk sales. “It’s clear there is still a demand for raw milk and that more and different options for its sale need to be considered,” says Roche. “It’s important that

people have the opportunity to comment on this matter so that MPI can consider all viewpoints before making any recommendations for change.” MPI says the status quo, which permits anyone to buy up to 5L of raw milk at any one time, with no limit on the amount of raw milk a farm may sell in such quantities, is not an option because it does not meet its policy objectives (see panel). Similarly, non-regulatory controls and/or sale at retail outlets or farmers’ markets have also already been ruled out. It is now proposing three options to allow farm-gate sales only (see panel). Roche says an MPI scientific assessment shows that although on-farm

Scott Rielly, Kairanga, fills raw milk at a vending machine on Arran Farm, Feilding.

practices can reduce the risk of illness from drinking raw milk, there are no hygiene practices that

guarantee raw milk will be free of pathogens. There’s also a rising trend in raw milk related

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illness, Ministry of Health data for 2013 showing it was a reported risk factor in eight reported out-

breaks of foodborne illness, affecting 33 people. In the three years 20072009 just five food-borne

Dairy News june 10, 2014

news // 19

rumbles on illness outbreaks identified raw milk consumption as a risk factor; in 20102012 there were 16 outbreaks which did. However, MPI also notes that for most foodborne illnesses consumption of an individual food such as raw milk is not the only risk factor identified; for the cases mentioning raw milk, contact with farm animals and consuming untreated water were also often risk factors. Federated Farmers has put out a member advisory notice saying it will be submitting on behalf of members and inviting members’ input to “help inform our submission”. Dairy chairman Willy

Leferink told Dairy News that Feds’ position at the last consultation was that raw milk sales from the farm gate should be permitted, but with protocols to ensure, as far as possible, minimal risk. “There has to be a strict protocol around it that people have to follow to make sure we don’t end up in the same situation as they did in Australia where a lot of people got really sick [from drinking raw milk]… We don’t want to destroy all we’ve worked hard for.” But Leferink has firsthand experience of why some people swear by raw milk: since moving off-farm in 2004 he’s suffered stomach upsets

which appear to be related to drinking bottled milk, whereas he hadn’t noticed any problems when it was taken from the vat. Feds notes the Food Bill, which has had its third reading in Parliament and now just needs the Governor General’s signature

Willy Leferink has first-hand experience of why some people swear by raw milk.

to pass into law, is driving the review of rules on raw milk sales. Besides the consultation, MPI is also running an anonymous online survey of people’s experiences with buying, selling and/or drinking raw milk, says Feds.

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Options and objectives MPI says the objectives for the policy on sale of raw milk are to: ■■ Reduce illness related to the consumption of raw milk. ■■

Maintain existing access to raw milk.

■■

Ensure consumers receive accurate, easy to understand information on the health risks of consuming raw milk.

■■

Develop law that is unambiguous and clearly sets out the obligations of buyer and sellers of raw milk.

■■

Encourage compliance and have the ability to monitor and act on non-compliance.

■■

Protect New Zealand’s reputation as a supplier of safe food.

■■

Regulate in a way that is consistent with the approach used for other uncooked foods that can potentially contain pathogens.

■■

To meet these objectives, it considers the following are viable options:

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Dairy News june 10, 2014

20 // news

Grassroots moving to trade in dung beetle pam tipa pamelat@ruralnews.co.nz

A WHOLE-farm package of dung beetles will cost about $10,000, says Dr Shaun Forgie, who has been project leader for the New Zealand Dung Beetle Release Strategy. The project, supported by MPI through the the Sustainable Farming Fund, has Landcare rearing beetles and carrying out trials. That Government-driven process is winding up at the end of the month and a company, Dung Beetle Innovations, is now being formed for the commercial release of dung beetles, with orders being taken for a waiting list. Dung beetles help to break down animal manure into a sawdust-like material by using it for food and reproduction. This has also been shown to improve soil health and pasture productivity,

reduce water and nutrient runoff, and reduce parasitic infections in livestock. Andrew Barber, managing director of Agrilink, involved in the strategy, told Dairy News Dung Beetle Innovations is talking to private investors. The company will continue the work started by the strategy group. The company’s mission is “to rebalance New Zealand’s pastoral farming systems through the sale, management and research of dung beetles”. Forgie, who will be a key employee in the new company, told a Warkworth workshop that commercial delivery should start sometime next year. A $10,000 package includes six colonies of about two or three species, with a total of 3000 beetles. “We reckon that is what is required for you to put on your average farm [for year-round] dung beetle presence.” Full carrying capacity will take 9-12 years.

There’s also a single-colony farm package costing $2000 (one species) and a lifestyle block package costing about $1200.” Defending the cost of buying dung beetles, Dean Blythen, Warkworth, told a workshop on May 31 at his farm that he still feels “the pain in pocket from one can of drench for doing our livestock: it costs $1360. When you start getting a bigger operation – $10,000 is only sixeight cans of drench”. Blythen and his wife Marjorie have been ‘gold’ sponsors of the Dung Beetle Release Strategy, belonging to the end-user group since it was first formed. Forgie says the beetles should be seen as an investment because once established they are always there. Dung Beetle Innovations will now look after mass rearing and ongoing research. Four species are now under commercial development and other beetles are in the

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pipeline, some with various specialties. Blythen told the workshop they had been in the programme pretty much since it began. With farming being blamed for a lot of things, he sees the dung beetle programme as “accepting ownership of some of the problem and an opportunity to be seen to be doing something about it and at the same time making a contribution back to the industry itself”. More on pgs 38-39.

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Resurgence in dairy FONTERRA’S DIRECTOR global brands and Nutrition, Jacqueline Chow says dairy has experienced something of resurgence in the past decade as increasingly sophisticated consumers look to naturally functional and whole foods for their nutritional needs. “The benefits of milk are well known. Regular servings of dairy nutrition helps maintain healthy bones, ensures children get the right amount of many essential vitamins and minerals they need for growth and is a good source of high quality protein – which our bodies need to build muscle, repair tissue and fight infection,” she says. As one of the best sources of calcium, a single glass of milk contains around a quarter of an adult’s daily calcium needs – equivalent to as much as four cups of broccoli and 16 cups of spinach. Chow says the rise in consumption is underpinned by a number of global trends including a burgeoning middle class in emerging economies, aging populations, a move towards natural, high protein food sources and scientific innovation in dairy. “Milk’s recognition as a natural, trusted and affordable source of protein and calcium is an important driver of its popularity in new markets. Scientific advances in dairy nutrition and manufacturing have also allowed increasingly larger amounts of protein to be packed into low-volume drinks, yoghurts and other foods, and this has seen dairy become a convenient food choice for all life stages,” she says.

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Dairy News june 10, 2014

world // 21

US farmers, processors threaten TPP walkout THE US dairy industry is

threatening to withdraw support for the pending Trans Pacific Partnership (TPP) trade deal if other countries continue to block access for their products. In a letter to ambassador Michael Froman, the US trade representative, US farmers and processors accused Japan and Canada of playing hard ball. And they called for “addressing the lingering impacts of New Zealand Government dairy policies that have intentionally advantaged a single national champion at the expense of other competitors”. The farmers and processors claim Fonterra’s status as the largest processor under DIRA amounts to monopoly in the sector. The National Milk Producers Federation (NMPF) and the US Dairy Export Council (USDEC) threatened to withdraw support from the pending trans-Pacific trade agreement if Japan and Canada refuse to follow through on pledges to provide comprehensive market access for US dairy products “It is clear, however, that Japan, and Canada, continue to strongly resist living up to the ambitious trade goals [required] upon joining TPP negotiations,” the letter says. NMPF and USDEC say the letter intends “to underscore the need for comprehensive market access for all dairy tariff lines into both nations to ensure TPP negotiations

result in a high-standard trade agreement that can be held up as a model for future agreements”. “USDEC has been one of the most vocal champions of the importance of including Japan and Canada in TPP since these markets offer strong opportunities for our members to expand US dairy exports,” says Tom Suber, USDEC president. “However, it is critical their participation in TPP be meaningful and comprehensive across all dairy products. It is unacceptable to have such sizable, sophisticated economies refusing to undertake the necessary openness they agreed to upon entering TPP.” Jim Mulhern, president and chief executive of NMPF noted that, “as we have made clear in our letter to ambassador Froman and secretary Vilsack, we want to see strong outcomes on market access with Japan and Canada, and our industry remains prepared to match the level of ambition of those countries. To be successful, any eventual TPP agreement must result in more open dairy markets in Japan and Canada.” Negotiations between the 12 countries involved in TPP are stalled: market access for agriculture and intellectual property remain key sticking points. New Zealand is banking on TPP to open access for its agricultural produce to lucrative markets like Japan and the US. How-

ever, both the Japanese and the US governments are facing growing political pressure at home. Japan’s reluctance to fully open five of its key agricultural sectors – rice, beef, dairy, pork and wheat

– to international competition remains a stumbling block. New Zealand International Business Forum chief executive Stephen Jacobi is not sure that a deal is imminent. Address-

ing the recednt Primary Industry summit, he noted “a lot more water needs to flow under the bridge before the negotiation is completed”. Politics is a complicating factor, he adds.

Jim Mulhern, chief executive National Milk Producers Federation.

Imagine if breakdowns and milk losses only happened on other farms

In the talks are Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietman. So far the talks have run to 19 rounds of formal negotiations, countless inter-session gatherings of thousands of officials, at least four separate ministerial meetings and annual get-togethers by TPP Leaders, the last one chaired by Prime Minister John Key at APEC in Bali last year. Some TPP economies have already departed from the consensus on these issues: Australia and Japan have concluded a bilateral FTA that sets a low benchmark for liberalisation, and the US and Japan appear to have agreed some tariffs will remain.

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Dairy News june 10, 2014

22 // world

Cottage cheese sales up in EU DAIRY CO-OP Arla

Foods is revving up cottage cheese production to meet growing demand in Europe. Its production of cottage cheese alone has risen 110% in five years and the co-op is going “all-in” to open Europe’s largest cottage cheese dairy. In nutrition, cottage cheese – once a product of the leftover milk in the butter making process – is

becoming a superstar of the dairy world. Hence Arla’s plans to open later this year a dairy at Falkenberg, Sweden, that will ship 29,000 tonnes of product annually in Europe. The cottage cheese boom is said to reflect a recent focus on healthier, higher-protein diets. American Journal of Clinical Nutrition last year carried an article saying that

a high-protein breakfast can discourage the intake of unhealthy snacks in the evening. Cottage cheese is promoted as a fast, convenient protein for breakfast. Because it can be eaten throughout the day, cottage cheese became popular first with health enthusiasts, then with other consumers. Convenience is a key: eat it straight from the con-

tainer or mix it with fruit, vegies or even spices. “Whether a consumer is looking for high protein products good for a low fat diet, or for muscle recovery, cottage cheese and other high protein dairy products are becoming more popular,“ says Lise Larsen, nutrition specialist at Arla’s strategic innovation centre. Cottage cheese was once made by household-

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Dutch co-op to feed more poor DUTCH DAIRY cooperative FrieslandCampina is to donate dairy products to food banks that help feed many poor in the Netherlands. The co-op will supply members of the Association of Dutch Food Banks with one million dairy items a year. And it will pay for better distribution of products to food banks nationwide, and share its expertise in food safety, quality assurance and nutrition. About one million people in the Netherlands live below an agreed poverty line. The Association of Dutch Food Banks, with 149 member food banks, gives food parcels to a small

proportion of this group – about 35,000 families. About 70% of food bank clients do not get enough food or have a nutritionally poor or monotonous diet. FrieslandCampina Netherlands managing director Bas van den Berg says it aims to make available dairy products containing important nutrients to broad sections of the population. “By meeting the logistical costs of this operation and offering our logistical network, we can ensure that more people who have to use food banks can be reached.”

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Dairy News june 10, 2014

world // 23

Farmer confidence up in Oz CONFIDENCE IN Australia’s dairy sector is improving- thanks to a higher payout and good weather. Dairy Australia’s 2014 Situation and Outlook Update Report last month showed farmers more confident in six of the nation’s eight dairy regions. They are bolstered by strong overseas demand for dairy and a drop in the Australian dollar. The latest National Dairy Farmer Survey shows 75% of dairy farmers are positive about their industry’s future compared with 43% this time last year. Dairy Australia managing director Ian Halliday says better farmgate milk prices in export oriented regions and resurgent business profitability are driving this change with 79% of farmers nationally saying they will make a profit in 2013-14 compared to 57% in 2012-13. Moreover, 58% of dairy farmers say their profits should be higher than the average for the past five years. “The number of farmers who also say they will invest on farm this year has increased notably with 62% feeling confident to do so compared to 42% last year. This senti-

ment is particularly strong in the Murray Dairy and Gippsland Dairy regions,” says Halliday. Sub-tropical and western dairying regions report much smaller improvements. Sentiment in sub-tropical dairy remains low (33%) as the region copes with the aftermath of poor weather and the flow-on effects of low supermarket milk prices and high input costs. “The domesticfocussed northern regions have not seen the same farmgate benefits of high international commodity prices brought about by the Asian dairy boom,” says Norman Repacholi, commercial and research analysis manager at Dairy Australia. According to the National Dairy Farmer Survey, farmgate prices for milk and milk solids remain the strongest drivers of farmer sentiment and for those feeling more positive about the industry’s future 40% attribute their attitude to improved milk prices. Milk price remains the greatest concern for Australia’s dairy farmers. “The Australian market is favourable for dairy with Australian Bureau

tasmanians doing best DAIRY FARMERS in Tasmania are more confident about the future of their businesses than those elsewhere, according to the National Dairy Farmer Survey. It shows 68% of Tasmanian dairy farmers made a profit in 2012-13 and 84% expect to make a profit this year; 66% of those expect to receive higher profits than their five year average. The survey also reveals 45% of DairyTas farmers intend to invest in their business in the coming year and that milk production is anticipated to increase 9.2%. “Rises in farmgate milk prices and improved profitability have nearly doubled positive farmer sentiment in Tasmania to the highest level since 2008 with 91% positive about their business this year compared to 50% last year,” says Norman Repacholi. “Tasmania’s dairy farmers are reaping the benefits of high international commodity prices brought about by the Asia dairy boom and they are among the most likely to be in an expansion phase,” he says. While low farmgate milk prices are still a concern for Tasmanian dairy farmers, labour, high input costs and the prospect of poor weather loom even larger for those interviewed, the survey says.

of Statistics March data showing total retail sales up 5% and retail prices up 8% with café, food and restaurant spending the major contributors,” says Repacholi. “Looking ahead to 2014/15 all producers are predicting growth in milk production in Tasmania

and the southern production regions and the focus will be on incentivising ‘new milk’ with price and co-investment initiatives. “But easing international commodity prices will likely apply pressure to base export milk prices and possible El Nino weather conditions could

dampen growth,” says Repacholi. “While the global economy is looking better this year, unease over the Ukraine crisis and latent debt issues in China and Asia generally could produce unwelcome demand shocks which could negatively impact Australia’s

modest recovery,” cautions Repacholi. Dairy Australia’s initial forecast for 2014-15 is for national volumes to reach 9.3 to 9.4 billion litres, an increase of about 2% on the expected 2013/14 season total. Ian Halliday

Dairy News june 10, 2014

24 // OPINION Ruminating

EDITORIAL

Let’s call it a jealousy tax

milking it... Gutting skills WAYNE MCKNEE might better be known as Wayne ‘McKnife’ in the halls of LIC, MPI and the former Ministry of Fisheries. In his latest purge he’s slashed seven senior positions at LIC, replacing them with six somewhat similar posts. Several senior LIC managers have gone. McNee’s moves at LIC follow similar ‘restructuring’ during his ministry roles. What’s the betting he learnt his departmental gutting skills at the Ministry of Fisheries?

No joy for farmers

Autism from milk?

Udder foolishness

FARMERS, DUCK for cover – Mike Joy is coming to a town near you. The Massey lecturer, who cherishes every opportunity to unfairly accuse dairy farmers of polluting waterways, is also targeting politicians in his latest crusade. Joy will tour for two months, lecturing on The demise of New Zealand’s freshwaters: politics and science. Chances are dairy farmers will feature prominently in the lectures, but not for their riparian planting, fencing of waterways and other great environmental work, for sure.

ANIMAL ACTIVIST group PETA is at it again, pushing its agenda by misleading consumers into thinking that drinking milk leads to autism. PETA has a slogan ‘got autism?’, based on studies done nearly 20 years ago. PETA has tried before to discourage milk drinkers from their cartons. In 2008 its ‘got autism?’ billboards were removed when The Autistic Self Advocacy Network pressured PETA. An old dog like PETA will always try the same tricks.

IT MAY seem udderly ridiculous, but only an airlift could save eight young cows trapped recently in a river in eastern Switzerland. The herd left the safety of their meadow in the Canton of Graubunden and headed for the water. It quickly turned into a drama when they decided to go to the other side of the river where the grass was, of course, greener. Halfway across they were marooned on a sandbank when the river rose in a downpour. The rescuers put their folly down to their youth.

ELECTION YEARS are traditionally labeled the ‘silly season’ by the media, but this year it’s quickly developed into a year of madness, even downright stupidity. The mudslinging in Parliament is unbecoming of adults – even children. Silly, petty name-calling shows a lack of maturity on the part of all concerned. Worse, the supposedly serious policy debate is already descending into madness, the Greens saying they want to slap a tax on dairy farmers. There must have been something weird – but not wonderful – in the potato wine the Greens sipped at their conference for that idea to have taken root. Call it a jealousy tax as much as a carbon tax because the Greens seem to think dairy farmers are rich folks who can afford to pay a few thousand dollars more to build more cycle tracks around the country. They seem to forget, as do other so-called environmental groups, that the relatively high standard of living most New Zealanders enjoy is funded by farming – not by building bicycle tracks or writing crazy policy papers. And they forget that many rural towns depend on the dairy industry for their economic survival. Not long ago Dannevirke residents turned out in droves to protest at the impact Horizons Regional Council’s One Plan would have on the dairy industry and their town. To their credit, Horizons listened and acted in a positive way to the arguments. Reducing the profitability of dairy farmers is dumb. Not all dairy farmers have a lot of cash to spare and some are struggling to survive even in good times. Dairy farmers have come a long way in a short time, mending their ways and reducing their environmental footprint. Now simply because they own cows they could take another hit in the pocket? Such a policy must be a worry to Labour which sees the Greens as a logical coalition partner. It will also make farmers wary of voting Labour if that sort of policy is on the table.

Got something on your mind? GOT SOMETHING on your mind about the latest issues affecting our dairy industry? Put your pen to paper or your fingers to your keyboard, and let our readers know what you think. Contact us by either post or email. Don’t forget to put your name and address. Note: Letters may be edited. post to: Letter to the Editor PO Box 3855, Auckland 1140. or Email: dairynews@ruralnews.co.nz

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Dairy News june 10, 2014

opinion // 25

Pre-election jitters KPMG last week released its Agribusiness Agenda ‘Facilitating Growth in an Uncertain World’. Head of agribusiness Ian Proudfoot says 150 industry leaders have disclosed to the firm their concerns about the September election outcome. Report excerpts follow. THE WORLD we live in is changing at a staggering pace. Some commentators suggest we are in the most significant period of change in the global economy since the industrial revolution, when automated production triggered the growth of dense urban populations. The centre of economic power is shifting, wealthy people proliferate and formerly dominant cultures and religions are diminishing. Technology is disrupting established business models, product lifecycles are shortening, and concerns grow about global climate change. The fundamentals underpinning 150 years growth of New Zealand’s primary industry could change quickly. Against this background we ran roundtables for the 2014 KPMG Agribusiness Agenda. Almost every conversation was on how the primary sector can deliver high yield, high protein nutrition to a changing world from a truly sustainable production base, while creating value for all stakeholders. Clearly many leaders are approaching the election with some trepidation. Any change in government brings uncertainty as the new administration implements its policy platform. In recent decades, the approach to key areas of primary sector policy – such as securing export, market access, biosecurity, food safety and core science funding – has been broadly consistent, regardless of the party controlling the treasury benches. That is not to say the political approaches are indistinguishable. The current Nationalled Government has placed a greater priority on the development of water infrastructure than the previous Labour-led Government, for instance, while the latter had a generous R&D tax credit scheme relatively easy for companies to access for cash refunds. Both policies had direct, positive benefits to the primary sector. Should National be unable to form a govern-

ment after the 2014 election, the composition and policy position of any potential left-of-centre coalition towards the primary sector is a top-ofmind issue for industry leaders. The result of the 2014 election will influence the potential of the primary sector. What could impact the industry’s ability to grow? The need for the primary sector to continue to improve its performance on core sustainability issues, such as water quality and nutrient management, is not disputed. However it was recognised during the discussions that while significant investment has been made to address these issues, the benefits are not immediately apparent. As a result, there is a concern that the ‘lack of runs on the scoreboard’ may result in a new coalition government increasing the regulation of the industry, and imposing charging mechanisms for the use of ‘natural capital’. The industry has much work to do towards a sustainable future, and time is needed to progess towards this goal. A key concern is the possibility that the time the industry needs to resolve its challenges may be reduced or denied. Concerns were also expressed that a new coalition government could adopt a different policy stance on market access. Whereas trade policy has historically been an area of cross-party cooperation, there are signs this may no longer be guaranteed. The Trans Pacific Partnership (TPP), in particular, could have a complex and significant impact on many aspects of the New Zealand economy. It has attracted more opposition than other FTAs, due to concerns it could diminish New Zealand’s sovereignty. Election outcome uncertainty aside, industry leaders have identified some policies an alternative coalition government could adopt that would have real appeal. One positive expectation is that a new coalition government will

much more actively promote sustainable business, especially increasing R&D investment in activities to address environmental issues such as greenhouse gases, nutrient leaching and water quality.

Industry leaders believe it is critical these important streams of scientific research take place. They expressed concern that there is currently insufficient support to enable this research to happen

fast enough to provide farmers and producers with the tools they need to truly transform into sustainable businesses. The view was expressed that more funding of these core research areas must

counterbalance any tightening of environmental regulation.

Ian Proudfoot

Hamish Logan, New Plymouth

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Dairy News june 10, 2014

26 // agribusiness

Sticky questions to be answered at council site FINDING NEW and creative ways to keep Waikato’s environment healthy while growing the region’s competitive edge is the focus of the regional council’s stand at this year’s Fieldays. “We urge people to take ownership of the issues and come to our stand to share their thoughts on how we can best provide for a better future for Waikato – environmentally and economically,” says council chair Paula Southgate. “It’s by working together on developing fresh ideas that we can best protect our natural resources and boost our competitiveness as a region.” Southgate sees Waikato as a “naturally competitive region” with great natural resources and products and smart, hard-working people. But it faces “relentless challenges”. “Storms and droughts have affected us in recent years. Environmental performance is under

scrutiny at home and abroad. Water resources are under pressure, and plant and animal pests are a threat. “We need people and organisations to respond to these challenges and any opportunities to do things better… to give us our best shot at keeping the environment healthy, the economy stronger and communities resilient.” A hot topic on the site Waikato Regional Council will be the need for farmchair Paula Southgate. ers to obtain consents for dairy farm water takes. before the end of the year. Under Variation 6 to the regional About 60% of farmers who plan, dairy farmers need a con- need such a consent have already sent to take more than 15m3/day of applied. Staff at the Fieldays stand water for dairy sheds. Under spe- will be able to provide advice cial “grandparenting” rules, they for any farmers who haven’t yet are guaranteed the same volume applied. The council has been keeping of water they were taking for their dairy sheds prior to October 2008, costs for these consents down by provided they apply for a consent group processing of applications

in catchment-related batches. To be included in the last such batch, for the Piako River catchment, farmers will need to apply before the end of July. The council recommends that farmers needing a consent, or wanting to take advantage of the group processing arrangements, should not leave things till the last minute as it can sometimes take time to get together the information required (for example, proof of how many cows were being milked on a farm prior to 2008). “We want to make sure that no farmer is left behind in this consenting process,” says Amy King, project manager for the council’s farm water team. “We know how essential this water is to farm businesses, and have a team ready to answer any questions.”

Bull leaves great legacy A DECADE of outstanding dairy progeny is the legacy of CRV Ambreed’s top bull Okura Manhatten which died in May. Manhatten’s stud owners Bruce and Ngaire Cutforth, Okura Stud, Northland, were compelled to euthenase 14-year-old Manhatten 18 months after he returned to the stud, after ten years on CRV Ambreed’s Jersey sire team. Cutforth, a former president of the Jersey New Zealand Council, says the bull’s 44,000 daughters and genetics were a “game changer” for the Jersey breed in New Zealand. Manhatten was notable for his high protein component, said to have helped take the Jersey breed to a new protein level, with a gene that “was out of the blue”. “We have been fortunate to win the JT Thwaites Sire of the Season award with four bulls, but I wanted a bull that was a breed changer; we got that with Manhatten,” Cutforth says. Manhatten is from a stable of exceptional bulls bred from the Okura stud, says CRV Ambreed. The most recent is Okura KRC Iceberg, the latest to claim the JT Thwaites Sire of the Season award. Other previous Okura winners included Okura Doyles Imran, and Okura Lika Murmur. Murmur presently sits at number three on the ranking of active sires list produced by New Zealand Animal Evaluation.

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Dairy News june 10, 2014

agribusiness // 27

Paying farmers not to pollute GIVING INCENTIVES to farmers

not to pollute could be more effective than fining them when they do, says University of Waikato economist Les Oxley. Farming should not have to bear all the costs of managing freshwater when the benefits flow more widely through the community, Oxley says. He will talk about this on Friday at a public seminar at National Fieldays. One way to tackle freshwater pollution would be to create incentives encouraging people not to pollute waterways, he says. “Rather than simply punish farmers for polluting, let’s consider paying them not to. “Retain the fundamental environmental law principle of ‘polluter pays’ if they do pollute, but let’s give them an incentive not to… rather than punish them for doing the things they may decide to do because they’re interested in production rather than profit.” Incentives can help achieve certain actions by encouraging people to do things we want them to do, rather

than telling them ‘do this’ or ‘don’t do that’, Oxley says. “Economists try to find solutions where there are fewer or even no losers.” Water differs from, say, petrol or electricity, he says, “because these things have a price you pay when you want more, and you can identify what your preference for these things is by how much you’re prepared to pay for it”. With water, it is effectively a free resource for many people (aside from a fixed annual charge), Les Oxley and they can use as much as they want. “Not surprisingly, people’s use of water reflects the price they are actually facing when they want more – in this case zero. Where’s the incentive to economise on water use here?” However, when there are water shortages, “it leads to some sort of dictate from the regional council: a hose pipe ban. What do your neighbours do? They turn their hoses on at

night when no one is watching”. Telling people to do the right thing doesn’t necessarily always work. “In the water market, understanding why we have supply constraints, understanding the effects of urbanisation, understanding the costs of infrastructure on that supply, and its interaction with those living in the cities and working on the land, and with those creating output for us to share – those interactions are ‘markets’. “If it’s profitable for [farmers] not to pollute and we made it even more profitable by giving them a subsidy, then that solution is both radical and different, but the reality is it’s incentive-compatible with what we want farmers to do. Punishment is ex-post (and we would still have this for those who do offend) whereas these are ex-ante attempts to change behaviour.” Oxley will speak on Friday at 12:45 – 1:30pm.

2014 Dairy Award winners in Auckland last month.

Awards entries top 7000, surprise organisers ABOUT 7000 entries are in for the New Zealand Dairy Industry Awards, say the organisers. “It’s a pretty impressive number,” says national convenor Chris Keeping. “When we started to look at the figures and add up those that have entered over the years we were surprised. “And the number of people involved or touched by the awards is many more times that.” Many of the entries are from couples supported by farm owners, farm staff and families. And sponsor representatives nationwide support the awards

and encourage their clients to participate. Others have attended winners’ field days or regional and national awards dinners. Many volunteers help run the regional competitions, including convenors, judges and coordinators. “The number of people involved in the awards in one way or another [adds up to] tens of thousands. “And… there are people at the top of the dairy industry who are past entrants, winners, judges and sponsors.” The awards scheme now includes three competitions: Share-

milker/Equity Farmer of the Year, Farm Manager of the Year and Dairy Trainee of the Year, attracting “at least 500 entries annually and playing a key role in motivating and highlighting career opportunities in the industry.” The awards programme is continually evolving to ensure it offers relevant contests with enough incentives. The sponsors are Westpac, DairyNZ, Ecolab, Federated Farmers, Fonterra, Honda Motorcycles NZ, LIC, Meridian Energy, Ravensdown, RD1, Triplejump and Primary ITO. www.dairyindustryawards.co.nz

Dairy News june 10, 2014

28 // agribusiness

Innovate, don’t stagnate – SMASH organisers ORGANISERS OF the fifth smaller milk and supply herds (SMASH) annual conference are promising “something for everyone”. SMASH chairman Noldy Rush says it is the final stages of putting the programme together. “The committee, who are all farmers themselves, have enjoyed putting this year’s programme together. From HR through to farming innovation it has something for everyone.” The SMASH conferences – ‘Innovate or Stagnate’ – will be held in Palmerston North, Rotorua and Cambridge on June 23, 25 and 27 respectively. For openers Geoff and Bev Laurent will tell how they developed Shoof International. They had $400 set aside for a lounge suite but instead launched a business, many

Participants at the 2013 SMASH conference in Cambridge.

of whose dairy innovations are sold worldwide. Doug Avery, owner of Bonavaree Farm and 2013 Landcorp Agricultural Communicator of the Year, will tell how he and his family

turned a drought-stricken property into a successful business. Malcom Holm and Jenny Wheeler, from Victoria, will speak about dairy farming in the extremes.

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tility dairy cows could profit the industry by $500 million annually. The research study also seeks to help farmers take advantage of the cows’ better genetic makeup. DairyNZ senior scientist and project leader Dr Chris Burke says the study requires 700 purposebred Holstein-Friesian heifer calves with low and high fertility attributes, created from selected contract matings in spring 2014. “[At least] 2800 contract matings will be required and we need the support of dairy farmers to achieve the required number of animals.” LIC and CRV Ambreed are supporting the establishment of the herd. LIC is managing the contract mating, having first contacted 1000 dairy farmers last month. The aim is to lift the six-week in-calf rate from the current average of 65% to 78%. Achieving this would increase industry profit by $500 million. “This challenging target cannot be achieved using current knowledge and technologies alone,” says Burke. “A biological breakthrough is required. “The research herd will help us unravel the underlying biology that differentiates genetically fertile cows from infertile cows. Some of the best scientists in New Zealand and Australia will work together with this research herd.” The biggest challenge is to reduce the apparent 30% of conceptions occurring in the first 35 days after insemination that are not sustained as a pregnancy. The magnitude, timing and possible reasons for pregnancy failure in commercially operated herds will be measured. This has not been done before. It will involve collaboration by DairyNZ, AgResearch and Fonterra. The project is also aimed at increasing the power to select for improved fertility genotypes through use of novel phenotypes (new ways to measure fertility for selection purposes), improved recording and enhanced statistical analysis models. Helping fund the project are DairyNZ, the Ministry of Business, Innovation and Employment (MBIE), AgResearch, Fonterra, LIC and CRV Ambreed.

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Dairy News june 10, 2014

30 // agribusiness

Dairy’s changing landscape John Droppert

DAIRY AUSTRALIA’S

recently released May Situation and Outlook report comes amid another year of intense change within the industry and the broader economic environment. Australia’s economy is transitioning from a prolonged period of intensive mining investment, while the global economic picture is broadly better than even 12 months ago. The dairy industry’s corporate landscape is also changing: the sales of Warrnambool Cheese and Butter, United Dairy Power and Harvey Fresh have proven once again the level of investment interest that exists. As the short term expansionary cycle

of global supply catches up with growth in demand, dairy commodity prices are transitioning from a period of near-record highs. Nevertheless, the current season has reminded many of the rewards that dairy markets can deliver in the longer term. Strong farmgate pricing signals have been reflected in confidence levels across most dairy regions in Australia: according to the latest National Dairy Farmer Survey (NDFS), farmer confidence has improved significantly in most regions over the last 12 months. Seventy-five percent of farmers are now positive about the future of the dairy industry, compared to a low of 43% this time last year. Big jumps

have been seen in six of the eight dairying regions, with at least 70% of farmers in each now feeling positive about the future. As gauged by the NDFS, positive sentiment in these six regions is now at 10-year highs. Improvements to sentiment have been more subdued in Queensland and northern New South Wales (Subtropical Dairy), and Western Australia (Western Dairy). According to the 2014 NDFS, 33% and 60% of farmers in these regions are now feeling positive, respectively. Having less of an export exposure, low farmgate milk prices remain a key source of negativity amongst farmers in these two areas, along with cost pressures and the ongo-

ing impact of supermarket milk pricing strategies. At the national level, improved profitability compared to 12 months ago has bolstered the outlook for many farmers. In 2012-13, 57% of farmers reported making an operating profit, whereas the latest data reveals 79% expect to do so in the 201314 financial year. In turn, confidence to increase on farm investment has increased notably since 2013, with 62% now feeling confident compared to 42% last year. Improved margins, better weather and a boost in confidence have seen Australia’s milk production recover from early season sluggishness. After several months of strong growth, 2013-14 output

Warrnambool Cheese and Butter was recently bought by Canadian processor Saputo.

is now expected to finish between 9.1 and 9.2 billion litres, a modest lift from Dairy Australia’s last production estimate, and roughly on par with 201213. Looking ahead to 201415, margins are likely to be leaner as easing international commodity returns see a moderate reduction in farmgate milk pricing, along with the possibility of El Niño-induced weather challenges keeping pressure on input costs. Measured growth in milk production across southern regions (led by Tasmania) will be partially offset by continued challenges in northern areas. Dairy Australia’s initial forecast for 2014-15 is for

national volumes to reach 9.3 to 9.4 billion litres, an increase of around 2% on the expected 2013-14 season total. More rapid growth is possible should the current level of positive sentiment continue, margins remain more profitable than anticipated, and if the current expansionary trajectory has carry-over effects for next season. Similarly, several factors could see the outlook deteriorate. These include further significant falls in international commodity prices with flow on effects to farmgate pricing and margins. Non-irrigated pasture production, purchased feed costs and reduced on-farm

investment could all suffer from the effects of an El Niño weather pattern (although a strong outlook for irrigation allocations provides some mitigation potential). Ongoing developments in the Ukraine and Thailand add a further level of uncertainty to the outlook for global dairy, grains, energy and currency markets. In any case, most of Australia’s dairy farmers will finish the current season in a much stronger position than they started it, in both sentiment and financial terms - good foundation from which to tackle 2014-15. • John Droppert is industry analyst with Dairy Australia.

Dairy News june 10, 2014

agribusiness // 31

Limited investment stifles growth jo bills

HOW DO we invest to

keep up? For the past few years dairy has been a good news story for global agriculture and trade. The rise of China as a serious dairy consumer and importer, steady demand from SE Asia and the Middle East, the increasing needs of Russia, fed by increased supplies from New Zealand and the US have resulted in a significant expansion in dairy trade. With the likelihood of continued demand growth, and parts of the EU gearing up for post-quota exporting strategies, dairy trade will expand in coming years. For a number of reasons, Australia hasn’t played a major role in this good news story. Flat-

lining milk production and a strong currency have hampered our ability to grow our exports in line with an expanding global dairy market – our share has declined from around 17% in the early 2000s to just 7% in 2013, placing us fourth behind the ascendant US industry as a dairy trader. As a result, there has been relatively limited local investment in processing capacity, as dairy companies have focussed on right-sizing capacity, with limited ability or requirement to invest in new stainless steel. This has not been the case with our competitors. Freshagenda has analysed overseas dairy investments as part of our Global Dairy Directions analysis for clients. Our estimates indicate that completed

and planned investments in dairy processing by our export competitors between 2012 and 2017 totalled well over US$6 billion, as they attempt to seize opportunities offered by expanding dairy trade. Cooperatives lead in terms of processing investment, accounting for about 48% of expenditure across the major dairy exporting regions (New Zealand, EU, US and South America). Fonterra alone has invested or will invest close to US$1 billion in additional capacity. EU-based cooperatives Arla and FrieslandCampina have also invested heavily in processing infrastructure, while completing a number of cross-border mergers within the EU. While much of the New Zealand investment focus

has been on building plants to cope with the growth in output, more of the focus in EU investments has been to extract greater unit value from milk solids. All of these cooperatives have much larger membership bases than our own in Australia, but even that has not been sufficient to provide the capital required to fund the investments required. All have had to evolve their structures to access to capital well beyond the capacity of their current membership base. In the case of Netherlands-based FrieslandCampina, the cooperative owns 100% of the shares in the company Royal FrieslandCampina NV. Capital instruments are tradeable amongst the 19,000 suppliers as well as former suppliers, and

there are arrangements in place to ensure a high level of profit retention to enable the company to maintain a permanent and building capital base. The Danish giant Arla has 12,000 members across six countries. To supplement the contribution of its members, Arla issues external bonds to access funds. It has also sought to significantly expand its membership base through acquisitions, and also retains a high level of profits to ensure it can fund its investment requirements. The structures of these two large entities have slowly evolved, with the benefit of EU’s soft competition laws which favour farmerowned aggregations. With a smaller membership than its EU competitors, and

a growing need for expansion investment, New Zealand’s Fonterra established Trading Among Farmers (TAF) and the Fonterra Shareholders Fund in 2012 after several earlier steps to facilitate change to a more flexible cooperative model. The scheme was designed to reduce redemption risk to the cooperative, allow non-members to invest in investment units listed on the Australian and New Zealand stock exchanges but retain full farmer control of the cooperative’s assets. This has arguably been the most revolutionary change to a cooperative structure that is designed to retain farmer ownership of all assets into the future. It has required – by law – the development of a number of instruments

designed to increase the transparency of price setting and discovery for farmers and investors alike. Each of these cooperatives has had to adapt its approach to evolving its ownership and governance structures against backdrops of different policy and market settings each faces to ensure it is able to continue to pay a competitive milk price, retain farmer control and access sufficient capital to invest, compete and grow. No specific model works in all cases, nor can be generalised as a preferred approach. • Jo Bills is a director of Freshagenda, a Melbournebased consulting and analysis firm that provides food value chain insights and solutions to a wide range of clients from farm to retail.

Dairy News june 10, 2014

32 // management

Quiet season good time to plan peter burke peterb@ruralnews.co.nz

WITH COWS on most farms now dried off, it’s a time for farmers to relax and prepare for the busy

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time ahead, according to DairyNZ’s Craig McBeth. Ideally they should be going into calving in an “excited frame of mind,” he says. Now is a time when farmers should keep an

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farmers can concentrate eye on animals off grazon “animal stuff” including to make sure they ing good feeding manachieve the targets aimed agement and animal for. Farmers should be husbandry. working with the grazers “It’s also a time for to keep strategies in place owners or managers to that respond to whatever spend time with weather arises. new staff and “If it stays acquaint them dry and cold that with all aspects would be good of the farm and for winter grazset out what ing because the is expected of utilisation of Craig McBeth them. They the crops will be not only need to know high. But if its gets cold at the physical layout of the home then the growth of farm, but also the way feed there might be a bit the farm has to operate compromised. including such things as “So there’s a need to supplementary feeding monitor your farming practices and systems. system to ensure it’s on “Health and safety are track to have animals in also important: making the right body condition sure people new to the score at calving and the farm know where the risks pasture cover at the right are on the property.” level come calving.” McBeth emphasises This is a good time of being mentally fit and the year for dairy farmers ready for the start of the to take a break and go on new season, a time to maxholiday for a week or two, imise production at the McBeth suggests. start of the season and get For those who stay a good head start. Being on the farm it is a time well set up helps avoid for maintenance so that mistakes which can result everything is shipshape in lost production. for calving, at which time

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UREA, DAP and superphosphate prices have been cut by cooperatives Ballance and Ravensdown. Both now have urea at $605/t, but Ballance is a dollar cheaper for super at $315/t while Ravensdown has a $2 edge on DAP at $773/t. Ballance made the first move, on May 30, with general manager sales Andrew Reid saying high global inventory of urea, particularly in China, and increased international manufacturing capacity of DAP lead to the lower prices. International prices for phosphate rock have also softened, as have most trace elements, the exceptions being boron, magnesium and sulphate sulphur. Reid says Balance will be reviewing prices quarterly. Ravensdown followed suit last week with chief executive Greg Campbell stressing the cooperative’s role in ensuring responsible use of fertiliser. “As a farmer-owned cooperative, we help farmers put on only what they need. We achieve this using accurate soil test data, sound advice from certified advisors and interactive maps of fertiliser placement. “Over the winter months, our team will be sitting down with shareholders to prepare budgets and plans based on the new pricing and that includes how to improve financial and environmental performance.” Campbell says the lower prices and solid payouts from dairy cooperatives mean aerial and truckbased spreading operations are straining to keep up with demand.

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Dairy News june 10, 2014

34 // management

Irrigated corn cuts grain use on Oz farm GORDON COLLIE

Aaron Clews focusses on the farming side of his family business.

A CENTRAL

QUEENSLAND farming family is taking proactive

steps to ensure a viable future in dairying for the next generation. Ray Clews says he was hopeful that higher milk prices would eventually

flow through, but in the meantime the family was putting the business on a better footing with a modified farming system to reduce costs and

improve yields. Ray and his wife Ailsa have just enacted their succession plan with sons Aaron and Michael taking over the business. But they will continue to be closely involved, helping out with milking. Ray’s family operated a traditional cream dairy for years when most of the Rossmoya district north of Rockhampton was dairy country. They switched to pork production, building up a 100 breeding sow enterprise, before deciding to recommit to dairying in the early 1990s with a future for their family in mind. They invested in a new 15-a-side herringbone dairy, bought milk quota, and built a 300 megalitre ring tank to provide irrigation security. The storage captures runoff-from the local catchment and they also pump overland flow after heavy rain. “We can get dry spells, although in recent times the problem has been too much rain. We’ve had more than a metre in the last three months.” The continuous wet poses herd health challenges and has disrupted their farming program. The milking herd has been built up to 290 cows all either Swiss Brown or infused. “We are right on the Tropic of Capricorn and we have found the breed is best adapted to handle the climate,” Ray says. They have a two million litre contract to supply the Parmalat processing plant in Rockhampton which needs all the milk it can get with farmers leaving the industry. “The factory is pulling milk from a wide area, but it has no certain future. They really need about 30 million litres a year, but at the moment they are getting more like 20 to 25 million,” Ray says. Their herd is continuously calved to help flatten the year round production cycle. With an automated calf feeding system they raise all their own heifers. This gives them growth

options if and when milk prices pick up and in the meantime they are culling heavily to improve overall herd performance. A computerised milking and herd management system with automatic cup removers was installed two years ago and this has been a big help in monitoring performance on an individual animal basis. To improve their feed security, the family have extended their irrigation with three centre pivots covering 10 ha, 25ha and 50ha. They have traditionally relied on winter ryegrass with clover and chicory for strip grazing from about June until the middle of October before switching to tropical summer grasses with some silage made from dryland dolichos pasture. Aaron Clews who is focused on the farming side of the enterprise, says the family had been doing some pad feeding for several years, with a mixed ration containing up to 5kg of grain. About 1.4kg of wheat is fed in the bails at each milking. Aaron says the family was moved to step up the pad-fed ration, growing corn under the pivots for silage. “The heat and sunlight is good for growing corn and we’ve had some very heavy yielding crops which are harvested at the milky grain stage.” Moisture probes placed at different soil depths help make optimum use of irrigation. They have pit storage capacity for about 3500 tonnes of silage and are building up reserves for feed security. “We hope to get to the stage where our grain ration is nearly cut in half, replaced by the starch in the corn silage.” The cattle will still have access to ryegrass grown under pivot for night grazing. Cover crops of barley or triticale will give them the flexibility of making silage or green manure, depending of seasonal conditions.

Dairy News june 10, 2014

management // 35

Rangihamama farm manager Mike Jensen.

Dairying a clear winner over hort gareth gillatt

A NORTHLAND dairy farm will bring stakeholders more returns than horticulture, say Northland farmer trust members. Jointly owned and run by Omapere Taraire E & Rangihamama X3A Ahu Whenua Trust and Te Tumu Paeroa, the Rangihamama dairy farm is a recently converted 220ha, 500-cow dairy farm on the outskirts of Kaikohe. The farm was originally a drystock unit, but the trust converted the property to dairying to get the most out of the rich volcanic soil, says Omapere Taraire E & Rangihamama X3A Ahu Whenua Trust member Bruce Cutforth. The trust eventually decided to set up a dairy farm, but not before it had examined the benefits of market gardening and dairy farming with the MPI, having developed feasibility plans for both possibilities. Farming far outstripped horticulture or market gardening, Cutforth says. “The trust required something which provided a reliable income and we recognised the horticultural industry wasn’t going to offer as many employment opportunities as they thought it would.” The trust leased out the Rangihamama property to help cover some costs of previous bad decisions, then took the lease back three years ago to begin the process of dairy conversion. While leasing out land did bring in some of the funds necessary it wasn’t enough to cover the full cost of conversion especially as the trust believed any dairy farming operation needed to be self sustaining. To get enough to pay for infrastructure the trust set up a partnership with Te Tumu Paeroa, originally the Maori Trustee who is now focused on Maori land development. Once the grazing lease expired, Cutforth says, they needed to move quickly to get infrastructure built. “Once the lease had finished the pressure was on to get the conversion finished in time. We had to put a lot of infrastructure into place in a short time.” Infrastructure included almost 60km of

fencing, waterways and subdivision, 6km of raceways, an effluent pond with 120 days of storage, a 40-aside herringbone shed, a house and a four bay implement shed. The trust has also adopted an aggressive stocking and regrassing strategy, cultivating large parts of the farm as maize before planting it with high-performance pasture species. 110ha of the dairy platform was initially cultivated in a maize crop, with the ground being worked up and planted in a high performance rye cultivar. Stock feed company North Country Grains harvested 10.2 tonnes/ha of maize grain with profits going towards farm conversion costs. “It was great: they cultivated the land, threw a bit of fertiliser on the ground for us and we got a little cash out of it. It was a worthwhile exercise.” So well has it worked that the farm management plans to crop around 30ha of the property per season to renovate the pasture, says Cutforth. Maize is fed on a 120m x 30m feed pad using a mixer wagon. The feedpad is an integral part of the operation, says Cutforth. The farm is a system four business. Cutforth says this will offer ‘insurance’ for a property in a region where summer drys can be just as much a challenge to manage as winter wets. With 25% of the property being in grass, clay pugging is a big concern and Cutforth says staff will use the feed pad as a standoff during winter and spring when conditions are wet. With the trust having access to 2000ha of cropping land, Cutforth says using a system four programme makes sense as all the farm’s supplement needs can be grown inexpensively within the scope of the trust’s larger operation. The trust has budgeted for animals to produce 180,0000kgMS/year this season with production eventually growing to 230,000 kgMS/year. The farm bought 450 cows in the autumn of 2013 with 310 mated to calve in autumn and the balance mated for a spring calving.

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management // 37

Mark, measure policy revitalises struggling Northland farm GARETH GILLATT

A MARK and measure

policy has helped renew the fortunes of Northland College’s teaching farm at Kaikohe, 100 attendees at a Lincoln University field day heard in late May. The organisers announced the setting up of a Northland forestry and farming learning hub at the school. The event also reviewed the progress of a joint Lincoln University/Northland College farm advisory group. The farm is operated on part of a 500ha plot of dairy, drystock, scrub and forestry land gifted to the school in the 1940s. The advisory group, with farm manager Loretta Smyth and herd manager Ken Romney, have participated in lifting production 38,226kgMS to 88,675kgMS this season, just 2848kgMS short of a farm record of 91,523kgMS for half the cost of the previous five years and with 95 fewer cows. The farm has made a profit for the first time in five years. The 143ha dairy farm ran at a loss between 2008 and 2013, costs climbing as high as $11.0/kgMS in the 2012-13 season with the 275-cow herd while only producing 50,499kgMS. No fertiliser had been applied for two seasons,

Lincoln adviser Murray Jamieson says. Some 85% of pastures had pugging damage and only 30% of fences worked. Smyth says the biggest challenge she faced as farm manager was the lack of records of herd or pasture management. “We had to guess what type of grasses had been sown on

PKE/cow/day all season, and 2kg extra meal concentrate in October and November to make sure stock went into mating in good condition. Cow condition went from BCS 3.9 to 4.5 with early calving and empty rates improving quickly as a result. Empties fell from 20% in the 2012-13 season

“If the pasture is performing poorly then you need to find out what’s wrong before looking to replace it.” – Graham Kerr the farm previously.” She started weekly pasture walks of the whole farm, recording all possible data including meticulous records of average herd condition. Managers and the farm advisory committee used this to plan pasture renovation, supplement production and use, and fertiliser use. This was especially handy when preparing the herd for mating. With an average BCS 3.9, Smyth knew stock had to get extra feed ahead of mating to cut a 20% empty rate and cut the calving duration. She also knew from pasture walks that paddocks weren’t growing enough feed to help stock reach that level. Smyth and Romney offered stock 3-3.5kg of

to 12% this season and Smyth says the six-week in-calf rate went from 56% to 78%. While PKE was used throughout the 201314 season, the team has decided not to use it as much in 2014-15. As the farm’s prime purpose is as a training facility and most dairy businesses in the region work as system 3 farms, where just 10-20% of daily feed is supplemented, Smyth says grain and PKE will only be fed at mating,

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Farm manager Loretta Smyth (left) and herd manager Ken Romney.

it doesn’t make economic sense to replace it. “If the pasture is performing poorly then you need to find out what’s wrong before looking to replace it; there’s no use throwing good genetics into the ground if that’s not the reason it’s failing.” Kerr recommended watching data before deciding. Cow and pasture performance will be

carefully monitored, says Jamieson. Extra tools will be added to the property to better watch conditions and progress and to help local farmers with research relevant to their area. Two weather systems are being built on the farm, with Lincoln also providing the school with pasture DM measurement tools which Jamieson says will prove invaluable in management’s goal

to develop a complete picture of what works and what doesn’t. “We’ll record what paddocks are heavily grazed, which ones are grazed during the day and which ones are grazed at night.” Farm information will be available to the public via a website from early 2015. Farmers and farm workers are invited to take part in farm walks on Wednesdays.

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summer crops getting the herd through feed pinches. Because of extensive pugging much of the pasture needs to be replaced. Sixteen hectares (10%) was cropped this year, and kale, turnips and chicory trialled as summer crop options. Yield was 8t/ha, low because two years of zero fertilizer had resulted in a severe nutrient deficit. Still the crops were handy during summer when growth rates fell to a low of 10kgDM/ha/day and pasture cover as low as 1784kgDM/ha. Smyth sees cropping growing in importance as the region’s summers get hotter and drier. While other members from the steering committee feel the entire farm should be regressed, Agriseeds pasture systems manager and farm advisory group member Graham Kerr advised against it at the field day, suggesting instead a focus only on paddocks that are actually under-performing. “If the pasture is performing well

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Dairy News june 10, 2014

38 // management Beetles fly to wherever they smell fresh dung.

Dung beetles will PAM TIPA pamelat@ruralnews.co.nz

WITHIN 50 years dung beetles will inhabit the whole country, says Shaun Forgie, the Landcare Research scientist working with the Dung Beetle Release Strategy

Group. Among their many benefits they can cut nematode reinfection rates by 76% and cut reliance on chemical drenches, he says. His research in New Zealand supports this, as does extensive overseas research, he told a

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Warkworth seminar the use of dung beetles onfarm. “Because of what they do ecologically, for us they are the most highly studied of all insects. So if I go on about their benefit it’s not because of hooha…. It’s based on studies done comprehensively all over the world.” Some drenches will affect dung beetles – slowing them down or even killing them, he told the farmer workshop. “But there are ways around that and establishing dung beetles can knock the heads of the nematodes you are drenching for. Your reliance on chemicals will drop through the floor and you won’t rely so much on that process.” But there are also dung beetle-friendly drenches. Beetles will fly to wherever they smell fresh dung: smell is the key, he said. They are remarkable at tracking down where fresh dung is. “They will fly to wherever that smell is whether it’s a kilometre or several but [they prefer not] to fly that far because that uses lots of energy.” Rotation should be adjusted to bring fresh dung within range with every rotation, when establishing dung

beetles on a property. You can also establish a “fresh dung island” to ensure there’s always a supply. In answer to a question, Forgie says the ability of dung beetles to use cowshed effluent had not been studied properly but could be part of future study. But if the effluent was laid on pasture dung beetles would consume it. “I have seen liquid dung come out of a cow and as soon as it hits the ground the beetles are flying in.” Untouched dung can sit on a paddock for foureight weeks, contributing to compaction which reduces soil health and causes problems of surface runoff. And production is lost because of forage fouling: the animals do not want to eat around a cowpat – the ‘zone of repugnance’ around a pat, about five times its size. If a cow excretes about 11 times a day and each pat takes four-eight weeks to break down, the cows avoid that area, wasting the productiveness of a lot of land area. Break feeding may deal with forage avoidance but it is not good for the animals because of increased transmission of nematodes and other pests and disease,

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NEW ZEALAND has only a few native dung beetles probably because there were no mammals in early New Zealand, says Shaun Forgie, an invertebrate ecologist who has extensively studied the beetle, particularly in South Africa. Our native dung beetles are not useful for farming as they live in native forests, have no wings and few migrate to pastures. “Australia brought beetles in during the 1960s for a project which finished in the 1980s and is being rekindled.” Now two commercial operations supply the whole of Australia. New Zealand as an agricultural nation has introduced livestock, fertilisers and pasture species but has not brought in dung beetles which “evolved to deal with the dung”. Other agricultural nations such as the United States and Australia had realised they had to. One tropical species, a Mexican dung beetle, was brought into New Zealand some years ago from Western Samoa and released in paddocks in Whangarei and Nelson. “They have been thriving; it is a tropical species living in a subtropical climate so has adapted well.”

Dairy News june 10, 2014

management // 39

cover the country Forgie says. Cowpats also eventually reach waterways and contribute to soil degradation. Dung beetles can consume a cowpat in 24-48 hours. As for farming’s reliance on the $700m chemical drench industry – and chemical dependency because of resistance problems – Forgie says many studies support killing nematodes naturally using dung beetles. “If we take an integrated approach, with drenches used a bit more wisely, and dung beetles and pasture rotation, you’ll break the back of dependency on chemicals.” Dung beetles will increase levels of plant nutrients because dung is full of phosphates and nitrates. Studies show that the nutrient levels under one cowpat worked

on by dung beetles last two years or longer. Their work reduces compaction, brings subsoils to the surface, increases organic matter in soil, cycles nutrients and brings a five-fold increase in earthworms. They also improve water infiltration into the soil, reducing ponding and helping inputs enter the upper soil level, so reducing the contaminants in the waterways. The studies have shown increases in root biomass, plant height, protein levels in the grass, nitrogen content and grain production. Forgie referred to his own studies and to significant documentation overseas of up to 76% reductions in reinfection of animals with nematodes because

of the action of one species of dung beetle. An 84-day experiment Forgie did in New Zealand supported the results of overseas studies which showed a significant reduction in nematode third-stage larvae in untreated cowpats using dung beetles as compared to cow pats from animals treated with drenches. They believe the dung beetles act in three ways that affect nematodes in cowpats: aerating and dessicating the eggs; physically damaging the eggs as the dung is moved; and burying or accidentially eating them. Adults suck up nutrients including eggs, and dung beetle larvae chew them. Dung beetles also bury the dung too deep for the nematodes to survive. The Environmental Risk Management

Authority (now the Environmental Protection Authority) in February 2011 approved the importation and release of 11 species. Risks were rigorously assessed as negligible, Forgie says. Eleven species of beetles have been brought in to cater for different conditions such as soil and climate. The project has been working with four of those reared at Landcare Research. This is expandable to commercial scale with hundreds of thousands of beetles. Dung beetles supporters are said to include Bruce Wills, Beef + Lamb NZ and Landcorp. Forgie likens the situation with dung beetles to that of the car industry – resistant to looking at other technologies until public pressure forced

Dung beetles can consume a cowpat in 24-48 hours.

the industry to develop electric cars. Farmer pressure will underpin a move to dung beetles and within 50 years they will be on most farms in New Zealand.

He told Dairy News dung beetles are not the only solution to problems facing the dairy industry, but they are one important solution. Significant effects

have been shown on nematodes, for example. “It is one of the things that could help you; it is not the overall solution but it is one of the better solutions you could use.”

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Dairy News june 10, 2014

management // 41

Storm-hit farmers Workshops to reduce pressure at calving bounce back RAPID RESPONSE – even on Easter

Friday – by council staff and contractors is said to have helped storm-hit Waikato farmers quickly get back to normal. The region on April 17 copped the tailend of Cyclone Ita, especially badly in the Kaimai ranges from Waihekau Road through to SH29. Heavy rain from 4am didn’t tail-off until 2pm that day. Landowners reported 250385mm and the river flow at the Shaftesburys Bridge recording site went from 29 to 160 cubic metres/second. Water in 18 swollen streams damaged farmland and farm assets. Slips sent debris downstream, blocking streams and causing water, silt and debris to flow on to paddocks. Farm fences and bridges were wiped out. Kym Davey, who farms between Te Aroha and Matamata, suffered two damaged bridges and lots of stream bank

damage. Rainfall was at one-in-100 year levels in places. Council staff and local contractors on April 18 began putting the streams back in their channels, repairing badly eroded areas and removing trees and debris from stream beds and paddocks. Some $180,000 has been spent so far, from a fund set up for such events. “It has taken four weeks to get… streams back in their channels and the more serious erosion repaired,” says the council’s Hauraki area manager Jason Roxburgh. “Up to eight diggers have worked up to seven days a week to complete this work…, a fantastic effort by the machine operators, local landowners and council staff. Manawaru farmer John Magill saw stream work start on Easter Friday, saying he was “very happy with the speed with which the council responded and the help given”.

DAIRYNZ WILL run 19 StockSense events in June and July to help farmers prepare for the calving season. The two workshops – one for junior staff and one for senior – are to develop skills to help the calving season go well and reduce stress. Humane slaughter on-farm and udder health will be the focus of the senior level workshop. DairyNZ’s animal husbandry and welfare team manager, Chris Leach, says humane slaughter is a timely topic due to expected change in the animal welfare code and the implications for farmers. “Farmers need to understand what’s expected of them,” Leach says. The senior workshop will guide owners and managers on how to reduce stress for themselves and their staff, to help calving go smoothly. “The workshop will provide tips

and tricks to stay healthy during the busy period… to ease stress and make for an easier spring.” The junior workshop ‘Get ready for calving’ has hands-on training for junior or new staff. “Participants will learn to identify the signs of calving, stages of labour, normal and abnormal calf presentation and when to call for help. “Participants will [learn] how to handle newborns safely, the importance of feeding colostrum and how and why to record calvings. “Even those who have grown up on a farm or worked for a season or two will benefit from the junior workshop.” North Island events will run from 10am-2pm and South Island events from 11am-3pm. All include a free barbecue lunch.

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June 10 Stratford June 12 Edgecumbe, June 18 Morrinsville June 19 Wellsford June 23 Ngatea June 25 Norsewood June 26 Masterton June 27 Palmerston North June 30 Te Awamutu, July 1 Putaruru July 1 Ashburton, July 2 Reporoa July 2 Papakaio July 3 Culverden July 7 Piopio July 8 Winton July 9 Milton July 9 Mangakino July 10 Gore

A raging Waipupu stream in Waikato on April 17 this year.

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Dairy News june 10, 2014

42 // animal health

MPI slaps ban on blunt force to kill calves peter burke peterb@ruralnews.co.nz

THE GOVERNMENT

has banned the killing of calves by ‘blunt force trauma’ – killing calves with a hammer blow to the head. The law will take effect on June 13. Public outcry erupted when film was shown of calves being killed this way on a New Zealand-owned farm in Chile.

Public consultation Immediately the Minister for Primary Industries, by NAWAC drew 357 submissions, most favouring Nathan Guy, instructed a ban. NAWAC the National then endorsed a Animal Welban. fare Advisory The chairCommittee man, Dr John (NAWAC) to Hellstrom, said review the he “didn’t think practice. The using a heavy intention was Nathan Guy hammer as the to amend the standard way of dispatchAnimal Welfare (Dairy ing bobby calves in the Cattle) Code of Welfare shed was very desirable”. 2010 to ban the practice He preferred ‘captive bolt’ except in ‘emergencies’.

shooting as “more acceptable”. Guy told Dairy News he didn’t think the use of blunt force trauma was widespread. But clearly there was a lot of support for a ban, he said. Other methods were available – captive bolt or rifle shooting, or euthanasia by a veterinarian. Guy says he made the decision now so the new rules could be in place for the new season and

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New laws banning killing calves with ‘blunt force trauma’ come into effect this week.

so that MPI and DairyNZ could offer information to farmers at the National Fieldays. The new rule is important to protect the image of New Zealand farming, Guy says. “We have

a world-leading animal welfare reputation and we want to be sure we are living up to that. It matters to New Zealanders, farmers and our consumers in some 200 countries that we are doing everything

right in animal welfare.” Guy says an emergency provision in the new law allows a farmer to use blunt force trauma on an animal discovered, say, in a back paddock, needing to be killed.

DairyNZ backs changes DAIRY INDUSTRY organisations support the Government’s decision to ban blunt force trauma as a routine way of killing calves. DairyNZ and the Dairy Companies Association agree blunt force suits only emergencies where better alternatives are unavailable. Dr Rick Pridmore, of DairyNZ, says the changes to the code of welfare for dairy cattle, outlined by the Minister for Primary Industries, clarify the matter for farmers. “Most dairy cattle, including calves, are generally not slaughtered on farms by farmers anyway, but are sent to processing facilities. However, the move to amend the code of welfare [clarifies] emergency and acceptable practice on farms…. Farmers need to be trained and

competent – an entirely reasonable expectation.” DairyNZ is working with MPI to make available training and support for farmers in, eg captive bolt shooting, Pridmore says. “We have 21 training workshops planned for June and July that will cover humane slaughter onfarm, and we will partner with veterinarians on more workshops.” Dairy Companies Association executive director Kimberly Crewther says the change aligns with international research-based recommendations and will underpin New Zealand’s reputation for high standards of animal welfare. “Consumers and the public can be confident our standards are robust for the care of cattle including calves,” says Crether.

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Dairy News june 10, 2014

Ensure your production is no fluke

animal health // 43

High performers to speak in Northland Repro Rock is part of DairyNZ’s focus on

ers Ashley and Karen Cullen helping Northland farmers. will tell how they improved their herd’s reproductive performance when they address a DairyNZ seminar near Whangarei on June 18. The event, Repro Rock, is part of DairyNZ’s focus on helping Northland farmers improve their herd reproductive performance. DairyNZ Northland regional leader Tafi Manjala says work on improving herd reproductive performance is time well spent. “Ashley and Karen are a great example of what is possible,” says Manjala. “They gained an estimated $50,000 in operating profit by improving their herd’s reproductive performance and they are keen to share their experience with other farmers at the Repro Rock seminar.” If Northland farmers achieve Tafi says the best indicator of overall herd reproductive per- the industry target six-week informance is the six-week in-calf calf rate and empty rate, this is rate. The industry target is 78% worth up to $60,000 per farm but data from the last New Zea- business, he says. “For dairy farmland Dairy Statistics shows the ers, better results mean more cows six-week in-calf rate about 63% in in-calf early, more days in milk, more replacement AB heifers and Northland. LIC will present more data spe- streamlined calf rearing. This is cific to Northland herd’s perfor- the basis of genetic gain and herd mance. “Come and hear how your improvement.” Industry experts will also speak herd compares,” says Manjala.

Efficacy 4 weeks after experimental infection1 100

and answer questions at the event. $7000 in prizes will be awarded for the best and most-improved herd performances of the farms that entered the ReproRock challenge. The ReproRock venue is the Fonterra conference room, 10.30am-1.40pm, 259 Jordan Valley Road, Hikurangi. @dairy_news facebook.com/dairynews

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Dairy News june 10, 2014

44 // animal health

Protocols can save calf losses Rob Bonanno

THE SUCCESSFUL

rearing of calves is an area where your veterinarian should be one of the key members of your team, yet often we are called in, like the fire engine, to put out blazing problems when the losses reach some

critical (yet often entirely random) threshold. The fact is that your veterinarian could have used his or her skills to help to prevent many of the calf rearing problems from occurring in the first place. Calf rearing success is all about having a strategy and system that identifies

areas where problems can occur, and how we can prevent or treat those problems. I have written before, and will continue to do so, that a calf induction protocol is a very worthwhile thing, especially on farms where multiple people may be responsible for aspects of

that calf’s care. A good calf induction protocol will include aspects of colostrum management, umbilical care, timely removal from the mother and attachment of a permanent ID and also some record of the ease of calving etc. Identifying the calf is

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In addition to this, if any quantitative testing (like blood protein or IgG levels) is being done to actually measure whether the passive transfer of immunity has been successful, it can also be recorded on Rob Bonanno the calf health card. strategy. Treatments or signs As I write this, one of illness can also be particular client of mine recorded for each calf in springs to mind. She is the pen which can help absolutely fastidious with other workers to know her calf rearing and is whether there is any extremely invested in the relevant health issues outcome of every calf. She to monitor and also to monitors the health of the maintain compliance calves very closely and with treatment plans reports and reacts quickly and withholding periods to any calves that skip a which will reduce the meal or look unwell. risk of antibiotic or other For that reason, she residues. often worries that she has Rearing healthy calves more calf diseases than is all about ensuring that “other” farmers. What I their basic needs are pointed out to her is that being met. It is essential she might treat more that after managing the calves than some others, transfer of antibodies to the calf via the colostrum, we might diagnose some pretty out there issues that the other critical requirements are also met. in her calves, but guess what…. They lose about 1 Calf housing is a huge variable that can influence calf per year. Some farms have the success or otherwise losses that exceed 10% of your calf rearing and yet if you asked them enterprise. if they have a calf rearing Broadly generalising, problem they would the aim should be to probably say no! provide a warm, dry, Keeping your calf draft free environment, rearing in perspective, with sufficient bedding and monitoring the to maintain cleanliness morbidity (sickness) and and allow for normal mortality (deaths) and behaviours. Air quality benchmarking that against issues must be addressed your previous results and to prevent respiratory those of other farms of disease similar size is a very useful But having good (or exercise. bad) facilities alone is Developing protocols not always the most that ensure vaccinations significant factor. I have are given at the right seen farms that have spectacularly good results time, weaning is done in a smooth and consistent in what I would consider manner and heifers are quite poor facilities and others with good facilities monitored to ensure that have poor calf rearing that they are hitting all their targets are all things outcomes. that your local dairy The critical difference veterinarian can help you is often the “care factor”. to develop to ensure the This includes things best results with your calf like hygiene, feeding rearing. consistency, feed quality, • Rob Bonanno is a former attention to detail and president of the Australian early recognition of illness, making a thorough Cattle Veterinarians Association and is a director diagnosis and following of the Shepparton Veterinary up with the appropriate Clinic. treatment or prevention

Dairy News june 10, 2014

animal health // 45

Reducing risk of infected colostrum Gorae West farmer Geoff Fleming uses the Perfect Udder bag to feed colostrum.

gemma chuck

IT IS widely known that feeding good quality colostrum to calves as soon as possible after birth helps provide immunity to disease in the first 4-6 weeks of life. However, colostrum can also be a source of some major infectious diseases to calves such as E. coli, Salmonella, Bovine Johne’s Disease and Mycoplasma. These pathogens can be shed directly into colostrum from an infected cow or can be a result of faecal contamination during the collection and storage process. Along with the direct diseasecausing effects of these pathogens, their presence interferes with the absorption of colostral antibodies by the calf, thus reducing their immunity to disease. The hygienic collection, storage and subsequent feeding of colostrum to newborn calves is a multistep process. This process is time-consuming and allows many opportunities for contamination of colostrum. Typically on farm, colostrum is collected from freshly calved cows and stored in buckets. But there may be many more steps before this colostrum is actually fed to the calf such as the transfer to other buckets, smaller containers, tube feeders and teat feeders. Research has shown that very little bacteria is present in colostrum taken directly from the udder. In one study, there was nearly four times the bacteria present in colostrum from the dairy-floor bucket compared to that taken directly from the udder. Possible sources of contamination include the teat skin, milking cup liners, hoses or the bucket itself. Suboptimal cleaning of collection buckets will exacerbate this problem. When collecting colostrum, the first milk produced in the udder, it is essential that cups are put on clean dry teats. Stainless steel collection buckets are preferable to plastic ones as they are easier to clean and do not become scratched. Daily washing of all collection (and feeding equipment) is vital to prevent the accumulation of pathogens. Colostrum and milk residues should be washed off with lukewarm water first. Then add 60ml household bleach per 20 litres of hot water and a ‘squirt’ of detergent and thoroughly scrub all

surfaces. Allow buckets and feeding equipment to dry upside down. Over the past decade, colostrum and waste milk have been the topic of much research looking to reduce bacterial content and improve transfer of immunity to calves. Various processes have been described from traditional pasteurisation to treatment with UV light. In the early days of this research, traditional pasteurisation produced a product that was thick in consistency and too difficult to feed. In addition, the pasteurisation process destroyed antibodies to unacceptable levels. However, researchers continued to develop and refine the heat-treatment process and have established a method that kills the major pathogens in colostrum but also maintains antibody levels. It is important to emphasise that this process is referred to as ‘heattreatment’ as opposed to ‘pasteurisation’ because the temperature and duration of treatment do not meet the specifications of traditional heat pasteurisation. Independent research has shown that compared to other processes, such as UV treatment, heat-treatment of colostrum offers superior killing ability of E. coli, Salmonella, E. coli, Bovine Johne’s Disease and Mycoplasma and has significantly less impact on antibody levels. A study in the US showed that calves fed heat-treated colostrum had better transfer of immunity at 24 hours of age compared to calves fed

fresh, raw colostrum. The same calves had a significantly reduced risk of scours or any other illness in the preweaning period. A shortfall of fresh colostrum may arise at the beginning of calving. Storage of colostrum, either in the refrigerator or freezer, allows convenient availability at all times but is not without its challenges. Dairy farmers commonly say that the collection of colostrum, transferring into a container, freezing, defrosting and then transferring into a tube feeder, is a slow and inefficient process. All these steps increase the risk of contamination. The Perfect Udder colostrum management system allows colostrum to be transferred directly into one bag, which can then be refrigerated, frozen, thawed, reheated or even heat-treated before being fed directly to the calf. There is no need to transfer colostrum between containers, improving efficiency and biosecurity. The Perfect Udder bags are single-use and come in two sizes: 3 litre and 4 litre allowing colostrum to be delivered in a single feed for larger calves. Smaller calves may need this volume split between two feeds. Heat-treatment of colostrum can be done as a batch prior to filling the bags or within the bags themselves. The design of the bags allows rapid and efficient thawing after freezing. • Gemma Chuck is a veterinarian with The Vet Group, based in western Victoria. www.thevetgroup.com.au

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Dairy News june 10, 2014

46 // animal health

Solving mastitis puzzle WESTERN VICTORIAN dairy

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Stephen and Tania Luckin at their dairy.

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this year. They milk 500 cows near Heywood, employing two permanent full-time staff and one relief milker. The Luckins milk on a 50-unit rotary dairy, fitted with DeLaval harmony clusters with 2x2 pulsation and automatic teat sprayers (on both cups on and cups off

position). They do not have automatic cup removers. In the first few months of 2013 there were increasing numbers of clinical cases of mastitis and it was difficult for the herd to stay in the premium range (<250 000cells/ml). The Luckins had

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organised two full plant tests by milking machine technicians and had reconditioned the pulsators without any effect on the bulk milk cell count (BMCC). They then engaged the services of John Penry to help them overcome the challenge. The farm team has excellent recording processes and this allowed the investigation to progress and swiftly move to improving the situation. To help with defining the problem, Tania Luckin organised a backup file from EasyDairy (their dairy management software). This was then used to create a Mastitis Focus Report (MFR) to quickly give Penry a sense of what cows were involved with the problem, as well as the scale of the problem. In this case the MFR provided excellent information that was then followed up with two milking time visits. Samples were taken from cows with elevated ICC (individual cell count) and from cows with previous clinical mastitis, to generate critical information as to where the main spread of infection was occurring. Milking time observations included teat scoring and assessment; cow behaviour; milking times; completeness of milking; frequency of cup slip; cluster alignment; assessment of milking hygiene; and routines and assessment of teat disinfection process. From observing two milkings, and reviewing the culture results, the Luckins and Penry found: ■■ Strep uberis and other teat skin pathogens. ■■ Teat end damage (due to inferior liners and increased working vacuum) ■■ Poor teat disinfection coverage with automatic teat sprayer ■■ High challenge of mud and manure onto teats ■■ Some overmilking ■■ They were able to rule out Strep ag and Mycoplasma (using PCR testing). Once the investigation had taken place, some meetings were held with the Luckins and then the

milking staff. The changes required for improving the milk quality were discussed and tasks assigned to different people. Some time was taken to discuss the reasons why changes were being made to improve staff implementation. In this case, some of the changes included putting different liners in, lowering the vacuum, moving the cups on position to 6-8 positions from the bridge, increasing platform speed, re-introduction of manual teat disinfection, shortening of dropper tubes to improve cluster alignment and changing the feeding practices to reduce the exposure to dirt and manure. Through this process, the Luckins and their staff were able to see how the information they had entered was being used and the way in which it can be used for monitoring milk quality in a proactive way. Continuously enforcing correct milking procedures with keeping the platform moving and excellent post milking teat disinfection have been instrumental in maintaining results. The Luckins are continuing to regularly generate Mastitis Focus Reports, also utilising the Countdown app (in particular using the test assessment calculator), herd testing and their computerised herd management system. Through using these tools they are able to monitor milk quality more closely and keep it as a focus of their business. The herd’s New Infection Rate is now at 2.4%, well below the trigger point of 5% average. BMCC for December was less than 160,000 and teat health has improved markedly from 24% rough or very rough teats to 13% rough or very rough teats. The Luckins were happy their information recording systems had allowed Penry to quickly investigate and improve the situation but noted engaging him earlier would have led to less clinical cases of mastitis and less culling of cows.

Dairy News june 10, 2014

animal health // 47

Calves should be given the best possible upbringing.

Simple changes help calf growth RICK BAYNE

AUSTRALIAN

FARMER Jess Fleming likens her calves to babies and like any proud mum she is determined to give them the best possible upbringing. The Flemings’ Gorae West farm in south-west Victoria already had a low sickness and death rate but Jess wanted to strive for even better results. With husband Geoff and his parents Peter and Gloria Thomas, Jess called on Gemma Chuck from The Vet Group, western Victoria, to tighten their routine and introduce an accelerated calf rearing program. The changes included a stronger cleaning and hygiene protocol, new flooring in the shed, vents in the back walls and plans to add whirly gigs in the roof for increased ventilation and more natural light. There has been particular focus on feeding and although the program was introduced only this calving season, the benefits are already clear. “The calves are big and strong,” Jess says. “We’ve got one-monthold calves that look like they’re two months’ old. They drink their feed and then it’s straight into the hay. We’re topping up the hay and grain at a record rate which is brilliant because they are developing this lovely healthy rumen which is what we want.” Overall calf health is better and the Flemings expect to see more improvements as further changes are implemented. “We weren’t financially able to build a new calf shed and do a complete change; we had to work within our financial restraints and make small changes. We were doing things

the right way but just not 100%,” she says. The changes were designed to improve calf health and growth, introduce labour efficiencies and reduce the weaning time. “The average weaning age was about 16 weeks, based on weight. We had calves still in the shed when we had the next lot calving. It was getting messy and drawing out,” Jess says. “We had heifers on milk for a long time and were weaning at big weights, 120-160 kgs. We were looking for ways to tighten that up and to reduce the time we spent lugging buckets,” Jess says. The accelerated calf rearing program of putting powder into whole milk is labour intensive but having good results. They are also using Perfect Udder colostrum storage bags imported from America and they test the colostrum with a refractor meter to ensure it is top quality. “With the nozzle at the top, all you have to do is connect the tube feeder and feed directly from the bag, preventing cross contamination and handling. It’s reducing the risks.” Jess is a strong advocate of refractor meters – even going as far as buying two as birthday presents for friends and family. “If I can encourage better colostrum management and healthy calves not only on my farm but others, that’s great,” she says. “It is very affordable and takes about 20 seconds to test colostrum to know that it’s good. People say it looks like good colostrum but you can’t tell by looking at it. “Geoff and I make a game out of it - we have a go at judging it ourselves before getting the scientific data from the refractor meter.”

“All anecdotal claims are out the window when you have the results in front of you.” Apart from one calf with a random e-coli disease that survived and is healthy, the only illness this season was identified in three calves that accidentally didn’t receive their colostrum. “There are 50 calves in the shed and the only ones that got sick didn’t get colostrum – that’s good enough for me,” Jess says. Jess describes good colostrum feeding as “calf care 101”. “A lot of people think they don’t have the time but studies show heifers that receive adequate amounts of colostrum grow better and we all know the old adage that big heifers excel…50kg extra weight at calving is 800 litres more milk over a lactation. It all ties in.” The farm has adopted a new cleaning and hygiene protocol and used a mini digger to remove the previous floor and install a new bed of scoria, shade-cloth and woodchips, along with vents in the back wall. “Straight away the calves seem to be happier,” Jess says. “Calves are born with no immune systems and giving your feeders a good scrub once a week isn’t enough. You wouldn’t feed your baby out of a bottle that was only cleaned once a week. They are valuable and you have to look at them like little babies and be very spot-on in sterilising and being clean and doing what you can, especially with the value of them at the moment. “At the end of the day we’re doing this because we want big happy healthy heifers that are going to milk well, get back in calf and put milk in the vat. That’s what every farmer wants.”

Dairy News june 10, 2014

48 // animal health

Maintaining the right diet of ‘elite athletes’ AUSTRALIAN DAIRY

farmer Dianna Ferguson describes her cows as “elite athletes”, and like any elite athlete, they need the right diet.

Dianna and her partner Steve Shipton milk 180-200 Friesians on their 263ha farm at Coolagalite, near Cobargo, in NSW supplying Bega Cheese.

They have been involved in dairying full time since 2000 and remain passionate and committed to the industry. “Steve loves grow-

ing grass, I love seeing the cows kept in good order,” Ferguson says. Her great grandparents started milking on the farm about 70 years ago.

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Gorae West farmer Geoff Fleming uses the Perfect Udder bag to feed colostrum.

She and Shipton started working on the farm in 2000 and bought into the property in 2004, firstly through purchasing cows, plant and equipment and

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then buying the property in 2010. They milk off less than half the dryland farm, the rest is used for dry cows and heifers and some cropping. Ferguson grew up on the coast at Tathra and studied and worked in Canberra for six years before meeting Mr Shipton, who was a diesel mechanic and had come off a beef farm. From age eight most of her school holidays were spent at the Cobargo farm. “Some of my fondest memories are there,” she adds. In 2000, the couple was returning to the farm to help out which solidified their passion. “That became our number one. We both love the cows and the land and work well together,” she says. “Whether it’s the cows and their genetics or a passion for working with the soils, there is a lot of reward in what we do on the dairy. It gives you a lot of fulfilment.” Since taking over the farm they have concentrated on increasing production. The farm today has a strong in-calf rate and a peak of 33 litres per cow in spring and averages of 28-29 litres across the year. “When you work hard

and get cows in calf and produce milk like that, that is one of our proudest moments,” says Ferguson. “We like to maintain their condition and have good feed throughout their lactation,” she says. The farm uses some purchased high quality tested concentrate and fodder feed, but aims to make as much home-grown feed and silage as possible depending on conditions. She admits the intensity has been challenging but at the same time rewarding. Dairying remains the predominant farming practice in the region, with about 80 local farms supplying Bega, and Ferguson is confident about the future. She represents her area on the Far South Coast Dairy Development Group which likewise has gained momentum in recent years as optimism grows in the industry. Their farm has been involved in succession planning and an environmental program with Bega Cheese that has led to new laneways, biodiversity areas, creek crossings and revegetation works. “When it rains and you’ve got grass and cows in good order, it is very rewarding. That’s what keeps you going,” she says.

correction: UNDER THE ECan Act Environment Canterbury’s Land and Water Plan is only subject to appeals to the High Court on points of law, not to the Environment Court as stated in Dairy News May 27.

Dairy News june 10, 2014

south island dairy event // 49 Farmers at last year’s SIDE.

Key challenges for business DAIRY FARMERS must be think-

ing now about how to reduce risk and future-proof their businesses, given that the ten-year horizon shows vast challenges facing the industry. Key challenges is one topic being discussed at the South Island Dairy Event (SIDE), this year in Invercargill from June 23-25. It revolves around three days of presentations, this year incorporating 30 practical workshops and attracting speakers including Olympian rower Rob Waddell talking about the importance of preparation, motivation and a team approach. Rick Pridmore is the strategy and investment leader for sustainability at

Dairy NZ and leads the sustainability portfolio which covers environmental management, biosecurity, animal welfare and community impact. He will be fronting an interactive session on key challenges for dairy businesses, outlining what the big issues are, and encouraging discussion on some options for facing these changes. It’s important dairy farm owners look at their competitiveness on a global scale, and engage in meaningful debates on the big issues facing the dairy industry such as retaining a skilled workforce, environmental constraints, resource allocation, and production prices.

Pridmore says too many people have a limited understanding of how to manage risk, and need to update themselves more on specific trends and issues to be able to adequately take control of their own fate. “Knowledge is power and the more we can help farm business owners to be forewarned, the better prepared they will be to react. Putting the time in to understanding and discussing risk helps the dairy business owner to maximise their influence on the outcomes.” He’s wanting to help owners step away from the day-to-day operations for an hour or two to see the bigger picture, and to ask questions.

New app to make more of SIDE (SIDE) has launched a free smartphone app to make the event more accessible to attendees, says committee chairman Paul Marshall. “The app will enable farmers to quickly and easily access the conference schedule and view it by day, topic, speaker or activity. “Attendees can also bookmark presentations they want to see and create a personal schedule for each day. For networking, attendees can see who is

at the conference, share contact information and connect with one another. “It will help farmers get more out of SIDE than in previous years by being able to connect with other attendees, provide workshop feedback and share their experiences. And it will be easier having the schedule on a phone rather than a folded piece of paper.” A map feature will show the way to the Stadium Southland venue. Also included are speaker and exhibitor

information, businesses at the event and note taking. The SIDE event offers 30 practical workshops. Speakers will include Rabobank director of dairy research Hayley Moynihan, 2013 Dairy Woman of the Year Justine Kidd, Landcorp chief Steven Carden and New Zealand Olympic rower Rob Waddell. Download in the iTunes and Google Play app stores. www.side.org.nz

HEALTH AND motivation guru Ed Timings believes health and wellbeing are the key to realising potential for business and personal goals, something he will be outlining at the South Island Dairy Event (SIDE). His keynote address will be motivational and practical, focusing on the tools necessary to keep life in balance and to live better and smarter. Timings stresses that taking control of workplace issues starts with people taking responsibility for their personal health and wellbeing. “If someone is routinely stressed, it will have an impact on their decision-making ability, affecting the business

helps them to examine as well as the individtheir life, and to impleual’s health. I want to ment some smart steps teach farmers firstly how for change.” to recognise the signals The SIDE sesthat they are sion will be a stressed, and reminder of how then what to do important it is about it. that dairy farmers “I want farmtake time out for ers and their themselves, and spouses at my if they aren’t, to presentation Ed Timings put some actions to understand in place to balance work, the chemical and physifamily, relationships, ological aspects of good health, a 10 point list that money and personal interests. includes the basics like “The result will be diet, exercise, relationhealthier, more producships and fun. tive lives enriched with “I want to empower more fun.” Timings, who people to recognise what has 20 years of experitheir problem is and to ence in the health field is take action; it’s about in demand as a keynote personal responsibility. speaker. Farmers will leave with a 30-day challenge that www.juggler.co.nz

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Dairy News june 10, 2014

50 // south island dairy event

Accurate fix on good governance GOOD GOVERNANCE is as important

in a dairy farm business as in a corporate boardroom, says Justine Kidd, a keynote speaker at SIDE. Kidd, the NZ Dairy Woman of the Year in 2013, and an avid promoter of the value of governance in business, plans to explain how good governance produces resilient and sustainable businesses. “Governance is not solely for boardrooms. Governance is leadership and involves disciplines like direction setting, performance monitoring, risk management and planning. It provides a structure for day-to-day operations and a framework for future plans. “What that looks like will be different from one business owner to the next, depending on size, scale and aspirations. But the result of good governance in any organisation is a resilient business delivering planned results.” “It means having a business that can deal with whatever life throws up, whether that’s big opportunities or sudden loss.”

DairyNZ chairman John Luxton addresses last year’s South Island Dairy Event. Justine Kidd

She intends to use her SIDE session to help farmers examine the sorts of governance structures and processes dairy farm businesses could have in place to provide this leadership now and in future. At the same time, she will raise the wider issue of who will lead tomorrow’s dairy farm businesses. “The industry is changing significantly, and I’m keen to start a discussion on how we manage industry governance into the future to make the most of new opportunities. “We need to start the process now, by asking what skills and capabilities we need to see in our future business leaders, where they are going to come from and to dis-

cuss what sort of help they might need. How do we best empower tomorrow’s leaders?” For the first time a phone app will be available for SIDE delegates to track the programme and help to view workshops, maps and speakers. To find it, enter ‘South Island Dairy’ on the app store of your Apple or Android phone or tablet. Kidd works with BEL Group as business manager She worked with DairyNZ in 2013 on developing governance in dairy farm businesses. She was chief executive of Equestrian Sports NZ between 2004 and 2007 and managed the New Zealand equestrian team to the Athens Olympics.

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registered? Don’t miss SIDE 2014 New Zealand’s premier dairy event

23-25 June 2014 Stadium Southland, Invercargill REGISTER NOW Go to www.side.org.nz to check out the full programme and register.

Riding the wave, minding the trough DAIRYING IS has peaks and troughs, and while the industry’s record payouts mean it is riding a wave, this will not last, the stalwarts point out. So the SIDE organising committee chair Paul Marshall urges farmers to focus on building a resilient enterprise weather the lows as well as the highs. ‘Riding the Wave’ is the theme of this year’s SIDE from June 23-25 in Invercargill, the aim being to help equip dairy farmers with knowledge and skills of good management practices and the personal attributes needed to maintain a sustainable longterm business. “Peaks and troughs are

the nature of our business, but we can choose how to approach these cycles. “Resilient businesses are built around resilient people, so we’re focusing our programme on

speakers to delve deep into the important issues for dairy farming. “We’re particularly looking forward to hearing from New Zealand Olympian Rob Waddell about

“Resilient businesses are built around resilient people, so we’re focusing our programme on the people aspect.” the people aspect – how to build and retain better teams, what makes good governance and, importantly, what farmers need to maintain their own wellbeing. “We’re planning to cover a lot of ground in this year’s event, so as well as technical workshops, we’ve attracted top guest

sustaining high performing teams and achieving ambitious goals.” Issues will include global dairying trends, the industry growth potential, environmental issues, and a series of risk and reward workshops looking at recognising risks to the farm business. There is also a strong focus on

succession planning. Farmers are expected to flock to sessions on how to make a mobile phone into an on-farm support tool. Marshall said SIDE helps farmers to learn, and to discuss and debate issues. “It’s just as important that farmers network, talk and enjoy the event, as it is they listen to the experts.” A phone app will be available for attendees to track the programme and help to view workshops, maps and speakers. To find it, go to your app store and search for ‘South Island Dairy’ on your Apple or Android phone or tablet. www.side.org.nz

Building a runway for the next generation HOW WILL a new generation of farmers get into dairy farming? This is one of the bigger issues young dairy farmer Simon Topham is hoping will be debated at this year’s South Island Dairy Event, in Invercargill from June 23-25. Topham, on the organising committee, hopes for a good turnout of the younger generation wanting to take in the bigger-picture issues as well as technical aspects of dairying. He is a Lincoln graduate in his fourth season of sharemilking, running 500 cows on his parents’ farm in Hedgehope, Southland. “As a sharemilker wanting to own my own farm I’m particularly interested in hearing about and discussing what I see as the two big issues of my generation – farm succession and environmental issues.” Until now there has been a clear pathway into farm ownership via

sharemilking, part ownership and making use of capital gains, but Topham believes that is starting to change. “The opportunities for good 50:50 sharemilking jobs are decreasing, mainly because farm owners are saddled with debt and have to focus on cashflow, therefore can’t afford a sharemilker. I see farmers in the future having to be more creative, with sharemilking contracts or joint ownership arrangements, otherwise the next generation of Kiwi farmers will not be able to buy land. “If nothing changes, the pathway is only going to get less clear, and more land is going to be sold to overseas buyers or corporate farms. This will prove to be a big issue for the dairy industry.” He’s keen to hear more about succession planning during several sessions.

“Almost all the forward thinkers in the dairy industry will be in the one place at the one time so it’s a good opportunity to hear their views, their stories and methods for getting into farm ownership, and to examine the options.” The technology focus for SIDE 2014 is also likely to be a drawcard. One interactive workshop will help dairy farmers make their smartphones work harder for them on farm – being connected with the practical and industry information they need to access quickly will help improve productivity. Another workshop bound to be popular is the OneFarm presentation by Tom Phillips, who has been looking at farm business management tools and phone apps that help dairy farmers better connect with practical everyday tasks such as feed calculators.

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Dairy News june 10, 2014

52 // machinery & products Ngahinapouri farmer Cherie van der Poel demonstrates a Check-Up test kit with veterinarian Ursula Bruce (left).

Win this beaut! Dairy News is giving readers the

Screening kit a new move in mastitis testing A SIMPLE, accurate and low-cost onfarm diagnostic kit is said to allow farmers to swiftly identify common mastitis pathogens without a microscope and further testing. The kit, called CheckUp, is made by Biofilm Research Laboratories, Auckland, for an associate company Farm Medix Ltd. Once the pathogen is identified, the treatment and potential sources can be established, reducing the likelihood of more cows being infected. The kit allows farmers to screen cows at drying-off and use teat seal rather than dry-cow therapy for cows with no infection. The kit is also seen as

useful for vets. It reduces overhead costs, saves time and usually makes further testing unnecessary, the company says. The kit has been evaluated by DairyNZ and has attracted interest from the international dairy industry, says Leon Spurrell, a co-director of Biofilm Research Labs. The company says it asked a selected sample of farmers nationwide for milk samples from sick cows, or their worst 10 results from regular somatic cell count herd tests. “What we found was startling,” says Spurrell. “Some cows had been infected with contagious

pathogens which could rapidly spread through the herd during milking. In other cases, the infective agents were Testing Kits organisms that cation of their animals’ will not respond general health, the comto antibiotic treatment, pany says. But they lack such as fungal mastitis, information about the algal mastitis, Pseudomocause of infections. nas and yeast. “Check-Up allows a “Treating cows with diagnosis onfarm; control pointless antibiotics is back in farmers’ hands.” wastes money for drugs, The product developin lost milk when mastitis persists, and during the ment was helped by a ‘Getting Started’ grant from milk withholding period, Callaghan Innovation in not to mention labour 2013. This contributed costs.” towards the trial. Standard testing of herds and daily milk supTel. 021 440575 plies gives farmers an indi- www.farmmedix.com

chance to win a brand new Mahindra Pik-Up single-cab 4x4 ute. Complete with flat deck tray, our Mahindra Pik-Up single cab prize is valued at $32,440 including on-road costs. Mahindra started making vehicles in 1947 with the iconic Willys Jeep. Today it is a US$16.2 billion company that makes utility, commercial and passenger vehicles and is the largest manufacturer of tractors by volume in the world. Mahindra utilities and SUVs, designed to tackle tough conditions, are fitted with a tough 2.2L common rail turbo-charged engine designed for Mahindra by Austrian diesel engine specialist AVL. The Pik-Up is a tough truck with Eaton

locking differential, low-range transfer case and the 2.2L diesel, which produces a decent 280Nm of torque. Dairy News will have a full review in an upcoming issue. Mahindra vehicles are big sellers in overseas markets but are relatively new here. Observant attendees of any of the 2014 regional field days earlier this year will have seen various models on display. The Mahindra team will have the prize ute vehicles on display at National Fieldays, June 11-14. As well as entering using the entry form on page 14 of this issue, Dairy News readers will get a bonus entry if they visit the Mahindra site (sites I5, I7, I9, I11 and J42) and note down the bonus code that appears on the Pik-Up single-cab displayed there.

Batchelor finalists EIGHT FINALISTS will compete to be Fieldays Rural Bachelor of the Year 2014 – and one is an Aussie. The competition takes place this week at the Fieldays, however the action kicked off on Monday June 9 when the bachelor finalists set off on an ‘Amazing Race’ to Fieldays from a mystery location, completing several rural activities and tasks en route. The fun and games get serious at Fieldays when the eight rural guys battle it out to win the glory, the title, a huge prize pool worth $23,000, and more importantly the coveted Golden Gumboot Award. During Fieldays the final-

ists will compete in heats over four days which test their agriculturally derived skills, No8 wire innovative attitude and allround charisma. Fieldays spokeswoman Vicki Annison says, “This is the opportunity of a lifetime for these rural blokes, who not only get to enjoy an all-expenses-paid trip to Fieldays, but, with all eyes on the guys, will receive a lot of female attention. “We will see a great contest as they compete and showcase their skills, strength and character, as they try to prove they have what it takes to win the title 2014 Rural Bachelor of the Year.”

QUALITY DAIRY HOT WATER CYLINDERS From 180 litres to 1500 litres

mains Superheat estic m o d pressure now rs e d n li y c available

Superheat Popular Sizes (measurements in mm)

Available from your local dairy merchant. Manufactured by:

Superheat Ltd

Licence 2509

www.superheat.co.nz or phone 03-389 9500 for details of your local merchant

NZS 4604

STANDARD RANGE AVAILABLE WITH COPPER BARREL, GALVANISED OR STAINLESS CASE 180 ltr 610 dia x 1330 high 3kW 200 ltr 600 dia x 1295 high 3kW 225 ltr 610 dia x 1550 high 3kW 270 ltr 610 dia x 1750 high 3kW 270 ltr 710 dia x 1350 high 3kW 270 ltr 810 dia x 1050 high 3kW 300 ltr 710 dia x 1330 high 3kW 350 ltr 710 dia x 1660 high 2 x 3kW 350 ltr 810 dia x 1400 high 2 x 3kW 400 ltr 710 dia x 1820 high 2 x 3kW 450 ltr 710 dia x 2010 high 2 x 3kW 450 ltr 810 dia x 1600 high 2 x 3kW

500 ltr 915 dia x 1400 high 2 x 3kW 600 ltr 810 da x 1900 high 3 x 3kW 600 ltr 915 dia x 1500 high 3 x 3kW 700 ltr 810 dia x 2200 high 3 x 3kW 700 ltr 915 dia x 1700 high 3 x 3kW 800 ltr 915 dia x 1900 high 3 x 3kW 800 ltr 1160 dia x 1400 high 3 x 3kW 1000 ltr 915 dia x 2400 high 3 x 3kW 1000 ltr 1160 dia x 1650 high 3 x 3kW SUPERHEAT STAINLESS SIZES WITH PLASTIC CASE 600 ltr 920 dia x 1650 high 3 x 3kW 1000 ltr 1170 dia x 1640 high 3 x 5kW 1200 ltr 1170 dia x 1865 high 3 x 5kW 1500 ltr 1170 dia x 2180 high 3 x 5kW

NEW SIZES AVAILABLE Now with stainless steel inner barrel and stainless outer case 350 ltr 400 ltr 450 ltr 500 ltr 600 ltr 700 ltr

710 dia x 1670 710 dia x 1860 710 dia x 2010 810 dia x 1690 810 dia x 2100 810 dia x 2370

2 x3 kW 2 x 3kW 2 x 3kW 2 x 3kW 3 x 3kW 3 x 3kW

Special sizes available on request. Superheat cylinders include elements, thermostats, valve pack, vacuum break and sight tube.

Put some bling into your dairy shed. Order your dairy cylinder with a stainless steel case.

Dairy News june 10, 2014

machinery & products // 53

Seamless, innovative milking on show FARMERS INTERESTED in seeing the

latest and best dairy technology from Waikato Milking Systems are invited to visit the company’s stand at Fieldays this week. All WMS products are designed to improve efficiency in the dairy, raising milk quality, farm productivity and profitability, says chief executive Dean Bell. All are designed to be easy to use and maintain, saving time and money. “Our design philosophy is to engineer any complexity out of milking

equipment. Farmers tell us they want products easy to use but providing sophisticated outcomes; that’s what our products do,” Waikato Milking Systems is the largest 100% New Zealand-owned dairy technology designer and manufacturer. Its New Zealand roots have enabled it to develop dairy equipment that withstands the rigours of intensive operations, Bell says. Its large-scale and integrated milking systems, available in almost any

configuration, are strong enough to withstand 24-7 milking environments. Notable products are rotary and herringbone milking systems, devices that improve and simplify the milking routine, and those designed to improve animal health and herd management. An example of its innovation is its Centrus composite rotary platform – a world-first using ultrastrong and lightweight materials. The use of Kevlar makes the Centrus five times stronger and

A handy tool to have WITH GOOD returns for dairy produce and lamb prices on

the up, 2014 is shaping up as the year to buy a Handypiece portable trimmer, says its distributor. New Zealand and Australian farmers now own about 4000 of them. They will be on sale at Fieldays. Farmer Max Houghton says he tried one – after having owned a different such tool – and was impressed. “The Handypiece was easy to operate, quiet, quick and it didn’t matter if the tails were a matted mess. We did all our heifers (about 150) and the battery was still going strong. “I’ve heard farmers get 300 cows trimmed on one battery charge. The other nice thing is that because the Handypiece uses standard sheep combs we could sharpen the blades on an old shearing grinder down the road. “We also have a couple of sheep running around the house so I can also keep them cleaned up” www.handypiece.co.nz

Max Houghton using a Handypiece.

80% lighter than a concrete platform of comparable size. Its design reduces load weight on the drive gear and rollers, saving time and money in maintenance. The company’s integrated technology range works together seamlessly, while keeping milking routines simple for operators. All products integrate with the milking system and external herd management systems, such as LIC’s Protrack and Minda and Afimilk’s herd management systems.

Centrus rotary milking machine.

Electronic milk meters are available that provide reliable and accurate information to improve farm business decision making beyond the milking machine. www.waikatomilking. co.nz

Birds spread diseases! Keep your dairy shed clean of pest birds with successful bird control solutions.

Cows are regularly infected with diseases carried by birds in farm sheds. Don’t risk animal ill-health and milk contamination. learn how you can prevent this at: www.pestgard.co.nz/dairy-sheds

PestGard

Need advice? Contact us now!

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NEW PRODUCTS!

INTRODUCTORY FIELDAY PRICES! TARAGATE IS LAUNCHING SOME EXCITING NEW PRODUCTS

• HOT POST • CATTLE CRUSH • DRIVEWAY ENTRANCE GATES • FENCING TOOLS and more! VISIT TARAGATE AT SITE E15-17 AND SAVE! GET YOUR FENCING SORTED! TARAGATE – the ORIGINAL Multi Strand Electric Gate

The preferred choice for over 20 years! – Taragate 4 Strand – Taragate 2 Strand – Taragate 4 Strand ‘Lifestyler’

Four Strand $58.00 Two Strand $39.99

Visit our website to view our full range or give us a call to discuss your fencing needs.

Taragate Ltd

RD2 Hamilton, New Zealand Phone 07 843 3859 Fax 07 843 3952 Email info@taragate.co.nz Web www.taragate.co.nz

Dairy News june 10, 2014

54 // machinery & products

Soft plastic milkerware ‘cuts bacteria, cell counts’ A SOFT plas-

DairyFlo plastic liners at work.

MT MIXER/TANKER A Mobile Mixer/Tanker built on a strong galvanized steel frame can carry and mix colostrum, milk powder or any other h calf lf supplements l that you want to feed out. Models include: MT800 - 800L tank MT450 - 450L tank

Powerful P f l Honda H d Petrol Motor

Si l Cli Simple Click k and d Clean System

Mi /di Mix/dispense 320 Litres Per Minute With Easy Use Dispenser Gun

C lib Calibrated d Floating Level Indicator

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tic milking liner and tubing system on show at Fieldays helps cut the risk of bacteria and minimises cell counts in milk, says the developer, DairyFlo, Hawkes Bay. The company, part of Polymer Systems International Ltd, the liner and tubing system from thermoplastic elastomer (TPE) made by Bayer. Bayer MaterialScience New Zealand business development manager Justin Gleeson says the dairy industry has had a “huge problem worldwide for 50 years with the continued use of rubber liners and tubing in milking sheds”. “Bacteria enter via the porous rubber, and the milk is exposed to lipids, cleaning and disinfectant agents and other chemicals.” DairyFlo general manager Eddie Crawshaw says using a plastic liner and tubing in dairy sheds is a better choice than rubber products for the environment, farmers and the livestock. “The benefits of plastic as opposed to rubber in the dairy shed are not only a more sustainable operation due to its recyclable nature, but [greater] cost effectiveness and time saving.”

Polymer Systems International managing director Steve Crawshaw says liners and tubing are a natural progression for the company from calf feeding teats it is already producing. “Modern materials such as TPE are replacing rubber in many applications. “For dairy farmers, replacing rubber with a soft plastic liner means they are changing the liners less frequently. Our testing and trials on farms have seen the DairyFlo liners last three times longer than the average 2500 milking lifespan of a rubber liner.” This saves money and time in a shed. The plastic is 100% recyclable, ending up in, eg surfboard ropes and playground mats. Some dairy shed matting is made from recycled plastic milking liners. The products will be shown in the Fieldays Innovation Centre. DairyFlo says its client Craig Alley, a dairy farmer in Central Hawke’s Bay, has trialed DairyFlo alongside his existing rubber

Soft plastic dairy piping and liners.

liners for the equivalent of 5000 milkings. “A number of the rubber liners were breaking and so needed changing early on, whereas the DairyFlo liners came through the entire time trial unscathed,” the company reports Alley as saying.

“My staff liked working with the DairyFlo gear because it was light to lift and the tubes didn’t get caught up in knots like the rubber is inclined to. The DairyFlo tubes also stay on the stainless steel much better than rubber, which can slip off, especially from the air tube.”

new-age liners, tubing ■■

■■ ■■

■■

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Resists microbes, lipids, cleaning agents and disinfectants. Impact resistant, hygienic, easily cleanable. High tear, wear, impact and abrasion resistance. High strength and elastic properties even with minimal wall thickness. Elastic memory maintains tension, minimising risk of leaky joints. Transparent, allowing view of milk flow. Kink resistance helps prevent tube blockage. 10% lighter than rubber. At least double the life of rubber liners. Passed by AsureQuality; certified by FDA for milk contact.

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

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

Genuine product ex UK

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

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Dairy News june 10, 2014

56 // machinery & products

Mixer wagons gaining ground TWO MORE dairy farm-

60 Litre & 100 Litre Teat Sprayer S/Steel pressure tanks

Quality

GLOBAL STAINLESS

Phone 06 272 8544 info@globalstainless.co.nz www.globalstainless.co.nz

• Priced from $1419 + GST plus courier charge

• Also high pressure s/steel water cylinders

ers are extolling the benefits of BvL V-Mix mixer wagons, says the distributor, Webbline. The company quotes Ferdinand Vries and his partner Stacey Young, of Southland, and Andy Story, of Te Awamutu, as saying they haven’t looked back on the decision to move on from “normal” silage wagons. According to Webbline, Vries “hadn’t planned on adding a mixer wagon to the operation” when he erected a Redpath herd shelter to winter 450 cows on their farm at Wreys Bush, near Winton. “However in December 2013 we were having an issue with lack of fibre in the diet and the cows were very loose. Webbline hired me their demonstrator

mixer for a week, from which I fed about 0.5kg of straw per cow, plus silage. The cows firmed up and at that point I decided a mixer was a wise investment”. And Story “purchased a new 20m3 BvL and haven’t looked back since. “The auger and bin design are excellent. “Most recently we have been feeding some bales to young stock and the mix included three bales of balage, palm kernel and maize silage. “We are able to put in three bales one after the other with no issue and the BvL will process in no time. “This last season we have increased our milk production by 100kgMS/ cow from 380-480kgMS.

Webbline says farmers like its mixer wagons.

I can’t say that is solely because of the BvL, but it played an important part…. “We have noticed since purchasing the BvL that the cows just stand there and eat, whereas they used to fight and push each

other around trying to get all the best bits of feed…. Feeding is a lot more even now and they clean up everything.” Webbline sales manager Glen Malcolm says as farmers aim to improve cow health and production

they see effective, consistent feed mixing as the way ahead. After harvesting “we focus on livestock feeding as the next most important part of the stored forage cycle,” Malcolm says.

A feature of the company’s Fieldays site will be offering visitors the opportunity to win the use of one of two BvL machines for a year at no charge. Tel. 0800 932 254 www.webbline.co.nz

Coming to a port near you

PLAN FOR THE WORST PREPARE WITH THE BEST

WINTON STOCK Feed now sees itself as the biggest independent importer of molasses, landing product at eight ports from Bluff in the south to Marsden Point in the north. “We sell direct to farmers so they benefit by dealing directly with the importer so we can give them better service,” says operations manager Paul Jackson.

New and Used Doosan Generators From 20kVA to 500kVA CONTACT

029 295 4403 or 09 262 8276

Controlling the entire supply chain enables the firm to give a reliable service and keep prices down, it says. A notable item of plant operated by Winton is a Conedose, used to batchmix liquid or powdered mineral supplements including non water-soluble products such as Mg Oxide into molasses. The system mixes

11419

with vigorous air agitation, then the minerals are held in suspension with a lower rate of agitation. Any minerals at present being added to water can be mixed in a Conedose. Dosage rates can be

changed daily. Products are mixed in daily batches prior to feeding to cows, ensuring animals get seasonal minerals. www.wintonstockfeed.co.nz – Tony Hopkinson

Innovative Design Improves Efficiency Ezi-flo pit gates completely clear exit ways and cannot be touched by cows leaving the milking area. MS1152

The fully galvanised gates are available in kitset for speedy installation

0800 226974

2 C OW S H E D

www.jfstoll.co.nz C B Norwood Distributors Ltd

Ph Jim 07-850 5971 Mob. 0274 936 693 Ph Chris 07-849 3630 Mob. 0274 936 692 P.O. Box 10 188, Te Rapa, Hamilton www.dairybuilders.co.nz

ezi-flo

PITGATES

Dairy News june 10, 2014

machinery & products // 57

Neighbours will stare only six times AN “EXCLUSIVE yet affordable sports car” released by Peugeot will be at home on sporting circuits and equally suit everyday use, says the distributor. Only six Peugeot RCZ R cars are destined for the New Zealand market. The Peugeot RCZ R is a product of the brand’s racing division, Peugeot Sport. It set out to develop a “more intense” version of the RCZ that offers ultra-high performance for sporting use on a circuit, but still good for everyday use, and with “benchmark” fuel consumption and CO2 emissions. Compared to the standard RCZ, the RCZ R has upgrades to the chassis, brakes and interior and has a handbuilt engine that produces 199kW / 270bhp and

330Nm – making it the most powerful production car in the history of the marque. Says Peugeot New Zealand divisional manager Todd Groves, “the quality of the RCZ R cannot go unnoticed and there are only 6 destined for the NZ market.” The car comes in 6-speed manual and has sat nav, JBL sound system and carbon roof. The RCZ R accelerates from 0 to 100km in 6 seconds. It has CO2 emissions of 145g/km, said to be a benchmark in the category of sports coupés. The new 270hp THP engine (1.6L) sets a specific power record in the category, with nearly 170hp/L making it one of the best in the world for a production vehicle and complying with the new

stricter Euro 6 emission standard. Aerodynamics work has increased the rear down-force of the vehicle thanks to a new spoiler, which favours stability at high speed without reduc-

ing the drag. The car is 17kg lighter than the 200hp RCZ. Weighing 1280kg it has a weight:power ratio of 4.7kg/hp. Price is from $77, 490 inc GST.

Only six RCZ R cars are available in New Zealand.

A N E W A P P R OAC H T O F U E L EC O N O M Y

The interior has also been upgraded.

‘Glued’ to the road NOTABLE DESIGN features of the RCZ R include matt black arches and headlamps and a titanium tint. The 10mm lowered ride height coupled with the wider 19 inch wheels with greater offset, benefit grip and traction give the RCZ R the appearance of being “glued” to the road, says Peugeot. Its special wheel rims – two-tone diamond/ matt black – have an ‘R’ milled in the alloy. The rims optimise the cooling of the new larger brakes. The red callipers at the front are signed ‘PEUGEOT Sport’. The fixed rear spoiler (integrated) “guarantees improved aerodynamic down-force while extending the silhouette from the rear view”. “The special rear diffuser conforms to the sleek effect which characterises the rear of the RCZ and incorporates two imposing exhaust tailpipes, chromed and symmetrical.” The car is available in four colours: Moroccan Red, Nera Black, Mercury Grey and Opal White.

The price you pay for a tractor is one thing, the price you pay to operate it is often quite another. By combining legendary fuel economy and innovative engine technology we have had customers who have reported savings of up to 15% on diesel consumption. Backing this up in recent independent profi tests, the Deutz-Fahr 630 TTV’s fuel efficiency excelled, proving 11% more fuel efficient than the average of others in its class. To get the full details and to start saving on fuel today visit your nearest Deutz-Fahr dealer.

0800 801 888 www.powerfarming.co.nz

Get upto date news at www.ruralnews.co.nz

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