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‘Conservative’ opening milk forecast. PAGE 4 FIELDAYS FEATURE Bonus pull-out site map inside PAGE 29-51

COW VALUES Herd scheme analysis PAGE 16

MAY 31, 2016 ISSUE 357

// www.dairynews.co.nz

WHY AREN’T WE MILKING ORGANICS? Overseas buyers are screaming for premium organic products from New Zealand but we are turning them away – Bill Quinn. PAGE 3

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DAIRY NEWS MAY 31, 2016

NEWS // 3

Processors behind the eight-ball in organics SUDESH KISSUN sudeshk@ruralnews.co.nz

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THE DAIRY industry is not cashing in on global demand for organic milk products. Local processors have been slow to embrace organic milk, despite organic whole milk powder prices having topped US$14,000/tonne, versus US$2200/t for conventional whole milk powder. Organic Dairy Hub, a co-op set up one year ago to organise organic dairy farmers, says international buyers with orders for organic products are being turned away. Chairman Bill Quinn says as a result foreign companies are partnering with local businesses to set up processing plants. These companies are talking to the Hub about supplying organic milk. This season (ending on May 31) 14 farmers have supplied 10 million L of organic milk to the Hub, whose turnover is $8 million; its average payout to farmers was $7.20/kgMS. It hopes to supply next season at least 20m L of organic milk to processors. The Hub sold all its milk this season to Green Valley Dairies, a South Auckland processor; it was processed into liquid milk and ice cream for the local market. Organic Dairy Hub has announced a forecast payout of around $8.50/kgMS for next season. Quinn says the Hub is ready to supply organic milk to processors. “We have farmers out there wanting to be organic -- system 1 and 2 farms who are already pretty much organic.” He says New Zealand is missing out on lucrative payouts by major processors by not giving organic milk enough importance. “We are missing out on a market opportunity; overseas buyers are willing to pay for it. We, as a nation, are going to miss out on part of that rich reward because they have come here and put their own capital into the plant… because our processors are saying ‘we don’t handle organic milk, we only

Organic Dairy Hub chairman Bill Quinn.

handle conventional milk’.” Quinn says for a country that prides itself on its ‘clean and green’ image it’s behind the eight-ball when it comes to organics. “We are turning people away at the border who are asking for organic milk products.” Demand for organic products is coming from the US, Asia and in particular China. Young mothers are keen to give their children organic milk, free of herbicide and chemical residues. People with rising incomes in developing countries are willing to pay more for safer products. Quinn says with better taste and great environmental credentials, organic milk products have great marketability. “There is a story and provenance around it, and it can be marketed in different ways to different people.” He says while organic whole milk powder fetches a 500% premium over conventional WMP,

NZ cannot quote a price for some organic products on the commodity markets, simply because there are no products available. Quinn says organic cheese buyers in the US are seeking NZ products. “Organic butter... one customer wants a 100 tonnes of butter as a start up order, another wants 300t. “And we say, ‘we have the milk but not the space in the processing [plants]’. That’s why foreign investors are coming in and setting up new plants because our existing [companies] either cannot or will not entertain doing organics.” Quinn is aware of at least 15 projects at various stages of design. “Not all will get through but those that will are keen to link with farming groups frustrated with the current processing system.” @dairy_news facebook.com/dairynews

DAIRY NEWS MAY 31, 2016

4 // NEWS

Supply horizons brighten, brakes remain on farmgate milk price PAM TIPA pamelat@ruralnews.co.nz

FONTERRA’S NEWSEASON forecast

farmgate milk price is “conservative” but the co-op expects the market to rebalance within 6-12 months, says Fonterra chairman John Wilson. Global milk production is at last responding to price signals, he says. The farmers were expecting a number like the forecast $4.25/kgMS – up 35c from last year, Wilson told Dairy News. The milk price is just part of the payout. “Our focus is to maximise the total payout,” he says. Fonterra is required under the Dairy Industry Restructuring Act to forecast the milk price at the beginning of the season and it is important to give

American milk production is down, US growth is now down to 1%, and the forecast for Europe is 1.2-1.4% growth higher than last year -- significantly down on the last few years and below global dairy demand growth which is at 2.3%.” Wilson says NZ milk production is expected to come back again; it was about 3% down this year. “It has been a tough year with facial eczema across much of the country, particularly in the North Island and even parts of the South Island,” he says. “Stocking rates are also forecast to be lower this season than they were last season.” Wilson says they anticipate the market will rebalance over the next six to 12 months. “This [farmgate] forecast of $4.25/kgMS is a conservative view for the year

farmers that signal for budgets. “However at the end of July we will update our forecast dividend for the year and that informs the total payout. Our focus is always on total payout and that will be announced at the end of July for the year ahead,” he said. Federated Farmers dairy chairman Andrew Hoggard says farmers were hoping for a figure more like $4.50/kgMS and will be disappointed. But they are resigned to another tight season. He says the milk price is still likely to be below the break-even price for most farmers. On the positive side, Wilson says global supply growth is really starting to come back. “New Zealand is down, Australia is down and forecast to drop quite a bit into the coming season, Latin

LONG-TERM LOOKS GOOD growth remains positive and its demand for imports has been steady over recent GlobalDairyTrade events. “We expect these drivers to result in the globally traded market rebalancing. “We will remain focused on securing the best possible returns for our farmers by converting their milk into high-value products for customers around the world.” There is no change to the current 2015/16 season forecast farmgate milk price, which is being held at $3.90/kgMS.

with some caution over the next 15 months.” Fonterra’s total focus is how to get increasing volumes of milk into higher value products, he says. “We are doing that successfully and that will inform the dividend announcement we make at the end of July for the season ahead. Our focus is on total payout to farmers and how we maximise that.” Farmers are resigned to another tight season after Fonterra confirmed its milk price at $4.25/kgMS for the coming season, says Federated Farmers dairy chairman Andrew Hoggard. “Many were hopeful of a price in the vicinity of $4.50, so optimistic farmers will be feeling disappointed,” he says. “We have seen the opening forecast price change quickly as the

Fonterra chairman John Wilson says the opening forecast is “conservative”.

market has changed. Unfortunately it has changed for the worse in the previous two seasons. Hopefully with this conservative forecast we won’t see any further drops, especially as there are more positive signs out there in the markets presently.” Hoggard welcomes Fonterra bringing forward the advance rate payments, however farmers are still

dealing with a low milk price -- below the breakeven price for most. “The DairyNZ economic survey showed that in the 2014-15 season, average farm working expenses were $4.07/kgMS and the breakeven price was $5.77. Figures are still to be crunched for 2015-16 but we can assume the breakeven price is now somewhere in the low-mid $5 range.”

Tough number to hear IT’S A tough number for farmers to hear but it’s the reality of where the market is at present, says Shareholders Council chairman Duncan Coull. “The signal farmers have received from their board is that while there are encouraging signs and the market should move in a positive direction over the next 12 months, it will be slow to do so. “However, we farmers are well tuned to volatility... and will have this front of mind as we work through our budgets for the coming year.”

Coull says the $4.25/kgMS is a forecast for a season not even begun. “So, as we move through the year it is vital that farmers continue to read the signals being delivered by the market and our co-op, and act appropriately. “Fundamental to this is Fonterra communicating any significant pricing shifts to our farmers in a timely and transparent manner.” Coull also acknowledged that the opening advance rate of $3.0/kgMS indicated the strength of the co-op’s

balance sheet. “Farmers can look to this as an indication that their business is in a strong position, and that their board is aware of the current situation onfarm and has a desire to relieve cashflow pressure where possible. “However, the current environment is placing additional stress on us all, so [we must] continue to stay engaged in our communities and support our friends and neighbours.” @dairy_news facebook.com/dairynews

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FONTERRA CHIEF executive Theo Spierings says the long term fundamentals for global dairy remain positive. Demand is expected to increase by 2-3% a year due to the growing world population, increasing middle classes in Asia, urbanisation and favourable demographics. “In addition to global supply growth slowing, we are seeing imports into major dairy markets improving compared to a year ago,” he says “China dairy consumption

ahead. The reality is that global oil price is low, grain price is low, there is global fragility in financial markets and importantly we still have a stubbornly high US/NZ dollar exchange rate(67.5c at the time of interview). That is having a big impact on our milk price announcement.” Consumer demand growth in China is strong and over the last three months Fonterra has seen ingredients demand rise 30-40%, says Wilson. But although underlying consumer demand is good, the situation in Russia is not changing and there has been a period of significant supply growth. “We have inventory levels up reasonably in Europe at the moment but globally we don’t see significant buildup in commercial stocks. These are all the factors we look at when we are forecasting,

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DAIRY NEWS MAY 31, 2016

NEWS // 5

Dairy did NZ proud in tough era – English SUDESH KISSUN sudeshk@ruralnews.co.nz

DEPUTY PRIME Minister Bill English has acknowledged the dairy industry’s contribution to pulling New Zealand out of the 2008-09 recession. Speaking at the recent DairyNZ Farmers Forum in Hamilton, he recounted how the dairy industry propped up the economy for five years. NZ went into recession at the beginning of 2008. Then along came the global financial crisis, plunging the country deeper into recession. “When [National was] elected it all looked grim,” he says. “But in the five year period when the payout peaked at over $8/ kgMS the dairy industry was part of the economy

generating the revenue, paying the tax, helping us stave off pressure on the government books and in particular generating confidence in rural NZ. “It’s something of an untold story.” He agreed the record payout in 2013-14 brought a few “structural issues” which the industry is now trying to adjust to. But he says NZ benefited enormously from the dairy industry at a time of need. English, who is from Southland, says he has seen the development of the industry in his home region. Smart Waikato and Taranaki farmers turned up 20 years ago and transformed the landscape. And the difficult days faced by sheep and beef farmers have turned around. “We are in the situation

where most other primary production industries are doing very well and the dairy industry is under a bit of pressure.” English was recently in the UK and Europe for meetings with their finance ministers and central bank governors. He came back glad “we have our problems and not theirs”. Europe is under pressure from low growth, negative interest rates and unwelcome migration. “Back here we have a

more solvable set of problems,” he says. “The culture of our politics and dairy industry is such that people can get on with solving the problems.” English says though the dairy industry is down, the beef, kiwifruit and wine sectors are doing well. In 2015 dairy exports were down by $3 billion; total exports went up $2b. English says the Government thinks the dairy industry will remain an engine of growth.

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6 // NEWS

James Allen, AgFirst consultant.

What’s the future for sharemilkers? PETER BURKE peterb@ruralnews.co.nz

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ownership as their ultimate goal – down from 70% two decades ago. He told Dairy News that the goals and aspirations of herd owning 50/50 sharemilkers is changing.

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He says it could be argued that many 50/50 sharemilkers see the goal of farm ownership as unattainable because of the volatile state of the dairy industry. “But the flip side is that some people out there are quite happy with their position as sharemilkers building up equity. Take the variable order sharemilker milking 1500 cows: most are making a good cash return. Do they want to slip to owning a 300 cow farm and being back in the shed fulltime, probably in an older shed and on a farm not as well set up as the one they are now on? They are making a career choice to stay where they are.” Having delved into industry statistics, done a nationwide survey and run workshops around the country, Allen has discovered little change in the number of sharemilkers on NZ dairy farms over many years. He says 32% of farms are run by a sharemilker of some description but the number of 50/50 sharemilkers is in decline. “As of 2015 there were 2050 50/50 sharemilkers out of a total of 3879 sharemilkers. If we go to 2010 there were 2300 50/50 sharemilkers and in 2005 there were 2700 herd owning sharemilkers,” he says. Allen says the reason for the decline in 50/50 sharemilkers is twofold:

on many farms the debt levels are too high, and corporate farming -- on the increase -- offers no opportunities for sharemilkers. This is particularly so in the South Island where just 13% of farms are run by sharemilkers versus 18% in the North Island. “Despite this there is still a lot of industry support for herd owning sharemilkers, much of it based on the tradition that sharemilking is a pathway to farm ownership. A lot of people want to support that. The industry has a lot of potential for young people looking for careers.” Traditionally there is stronger support for sharemilkers in Taranaki and Waikato, he says. Allen’s research shows a huge variation in sharemilking agreements. He says the volatility of milk prices season by season, and within seasons, needs taking into account when drafting sharemilking agreements to ensure sharemilkers don’t get short changed. He says the present agreements are not broke, they just need to be modified to meet the changing times. Allen says the modernday sharemilker has to be more business savvy with good financial, human resource and up-to-date farm management skills. HR skills are particularly important for today’s sharemilkers.

IN BRIEF Animal welfare submissions THE MINISTRY for Primary Industries has received about 1500 submissions on the proposed new animal welfare regulations; submissions closed two weeks ago. Just on 8% (119) relate to the contentious issue of ‘young calf management’ -- code for bobby calves. The proposed regulations could stipulate better feeding, better shelter while they wait to be transported, and limits on how long they can be on a truck. MPI will spend the next three-four weeks summarising the submissions and will post them to its website. Some submissions are as large as 700 pages and these await analysis. As part of the submission and consultation process MPI ran regional public meetings that attracted about 500 people.

DAIRY NEWS MAY 31, 2016

NEWS // 7

Fonterra playing catch-up – Quinn SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA THIS month announced a market-based payout for organic milk of $9.20/kgMS for the new season, up from the $5.65/ kgMS it currently pays for organic milk. The co-op says the new price “reflects consistently high prices for organic milk products in its global markets”. And Bill Quinn, Organic Dairy Hub, says its presence in the sector is raising awareness and the validity of organic milk. He points out that in March last year, Fonterra’s organic milk suppliers were paid the farmgate milk price plus $1.05 premium for every kgMS; the premium was later raised to $1.50, then $1.75. In February this year, Fonterra announced it was going to a

market-based payout. “The question is, would that have happened if the hub was not there. I put it down to competition; it is healthy for the industry.” Quinn says Fonterra is playing catch-up to the Hub. ODH pays its suppliers 90% of the milk price within one month and the remaining 10% within three months; all payments are finalised by June 20 of each year. All its trade is done in New Zealand and in NZ dollars. He says the Hub is getting enquiries from Fonterra organic suppliers and other farmers. “We are inundated with farmers willing to supply, from North Island and South Island. As a serious option corporate farms and iwi group farms are now looking at it, so we are talking big farms.” Organic farm numbers have declined from 127 five years ago to 70. However, for the first time in

Organic milk back in favour FONTERRA SAYS the marketplace for organic milk

Organic Dairy Hub’s milk has ended up in the domestic liquid market.

five years, applications for organic certification have grown. Quinn says says he expects to

see 100% growth in farms under organic certification in the next 12 months.

is very competitive and the market-linked organic milk price will help the co-op to secure a steady stream of organic milk. The growth of the organics business is good news for the whole co-operative, says Paul Grave, head of co-op affairs for Waikato. “Organic farmers actively participate in creating value by providing Fonterra with a certified organic milk stream, and all farmer shareholders share in the value created by the organic business through dividend payments.” Increasing demand for organic milk products, and organic food in general, is leading to high prices for these products in international markets. While global milk prices have been volatile recently, prices for organic dairy ingredients have remained at the same relatively high levels since 2013-14, says Grave. “Organic milk prices are high because consumers’ appetite for organic milk products is growing faster than supply.” The margins the cooperative is achieving on its organic milk products are similar to some of its highestearning consumer and food service products. “By selling higher-value products at premium market rates, the long-term organics strategy reflects Fonterra’s priority to drive more value from every drop of milk,” says Grave.

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DAIRY NEWS MAY 31, 2016

8 // NEWS

‘Bolder’ board would cut director numbers SUDESH KISSUN sudeshk@ruralnews.co.nz

FORMER FONTERRA

director Colin Armer is voting against the co-op’s governance and representation proposal, which causes him some worries. “I don’t want to be negative; there are really positive [elements] in the final proposal,” he told Dairy News. For example, he backs the development of a skills matrix for choosing

directors, and strengthening farmer representation on the nominations committee. But he says the board could have been “much bolder” in cutting the number of directors. He says farmers are being asked to give increased responsibility to the Shareholders Council before a review of the council’s performance. He is also concerned that Fonterra shareholders must pay a lot of money to

GOOD CONVERSATIONS FONTERRA HELD meetings over the last two weeks to discuss the final proposal. Chairman John Wilson says it is a good opportunity to get farmers focused on what the board is putting in front of them. “We are having good quality conversations, feedback has been strong and we think our farmers are listening to the voice of the expert panel we have,” he says. “We’ve got global cooperative leaders on that panel... Chris Moller who is a highly respected governance expert and Dame Therese Walsh. They unanimously support what we are putting forward to our farmers and many of our farmers support it. “It is a change from what we have today. But our farmers are recognising [the need to get] our most capable people onto our board as we look out over the next 10 years or so.”

buy shares to obtain the right to supply milk to the co-op and to choose directors. Armer and Greg Gent rocked the co-op last year by proposing the board be cut to nine; 54% of shareholders supported their proposal, well short of the 75% needed to force constitutional changes. Armer says if Fonterra fails to get 75% support for its proposal on June 10 it won’t be a vote of no confidence in the board. “What farmers will be saying is ‘go back to the

drawing board and put together something more acceptable to us’.” Armer says farmers have been calling him and Gent to get their views on a proposal, released two weeks ago, suggesting significant changes to a draft proposal released two months ago. It now recommends a board of seven farmerdirectors and four independent directors, instead of six farmer-directors as proposed last month. It brings forward a formal review of the farmer coun-

cil to this year, from next, and strengthens the scope of this review. It further proposes that a second farmer council observer be added to a director-nomination committee, but the board/ council review group is sticking with its earlier recommendation that farmers choose director candidates nominated by a selection process which would replace the current single transferable vote system for farmer directors. There would be

DESPITE THE low milk

price there was a positive vibe among the 33 finalists competing for the NZ Dairy Awards this year. Awards general manager Chris Keeping says the finalists are looking to progress and grow their equity and position in the industry, “exciting to see and great to witness”. Share farmer head judge and DairyNZ senior consulting officer Abby

Scott says the economic climate has prompted finalists to change some practices to ensure they better manage available resources. “People were focusing on growing grass and supplements within their farm boundary and making sure they used it. And they were more interested in profit per hectare than benchmarking milk production per cow. We

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Winning line-up... Nicholas Bailey, Jaime and Mark Arnold, and Thomas Chatfield.

An extended bobby calf season

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an equal number of independent and farmer directors on the nominations committee, and a 75% majority would be required for decisionmaking. The revised proposal

Positive vibe at awards

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Your Calves. Our Service.

Colin Armer (left) with Fonterra director Malcolm Bailey at last year’s annual meeting.

North Island tel. 0800 356 357 • fax. 0800 376 156 bobbiesni@silverfernfarms.com South Island tel. 0800 SFF CALF / 0800 733 2253 • fax. 03 474 9901 bobbies@silverfernfarms.com www.silverfernfarms.com

also saw innovative ways of reducing costs,” Scott says. “They were all positive about the industry, their business and their equity growth. Their positivity... was infectious. There’s no doubt they’re in the industry for the long haul.”

people. “We are surrounded by people who have great influences; our staff make us who we are. We call our farm owners our farm partner and appreciate their support.” The Arnolds took a huge pay cut when they launched their dairy

“They were all positive about the industry, their business and their equity growth.” Share Farmers of the Year Mark and Jaime Arnold are 50% sharemilking 500 cows for Mike and Sherynn Harold and Stuart and Sandra Cordell at Dannevirke. It is their fifth season on the farm and a great relationship with the farm owners led the owners to partner them as they progressed from lower order to 50% sharemilking. Jaime says their farm operation is all about

farming career eight years ago. The former logging crew manager and teacher went on a single herd manager’s salary when they stepped onto a dairy farm for the first time. Thomas Chatfield became the 2016 New Zealand Dairy Manager of the Year and Nicholas Bailey was announced the 2016 New Zealand Dairy Trainee of the Year.

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DAIRY NEWS MAY 31, 2016

10 // MAORI DAIRY AWARDS

Must be something in the Westport water day job, began to enjoy it and then started studying peterb@ruralnews.co.nz two years later and came on from there,” he says. “Winning this award IT FEELS great to be is really big and while I acknowledged in this way am not much of a public and a huge honour. speaker I have had to deal That’s how Jack with that in the last twelve Raharihi (24), (iwi Ngati months and probably will Kahu), feels about being have to for the next twelve named the Young Maori months.” Dairy Farmer of the Year. Raharihi says over Raharihi, who hails the years he’s developed from Westport, was a passion for training presented with the award other young workers and by the deputy Maori helping them carve out trustee, Tiaki Hunia, at viable career paths. Seeing last week’s Ahuwhenua his peers progress to good Trophy Awards dinner in results and getting higher Hamilton. positions elsewhere is The other two finalists satisfying. were Harepaora Ngaheu, “Education is a big from Te Teko, Bay of thing these days. To get Plenty, and Ash-Leigh a manager’s role now, Campbell, Canterbury. qualifications are a Raharihi says he necessity. If I can train had a troubled past as a my guys up to that level teenager and left school and know they have at 15. Though he had the certificates to back no experience of the themselves up, I feel dairy industry he started positive about having working on Landcorp’s helped them get there. Bassets dairy unit at Dairy farming got me in Cape Foulwind. Now he line: I had no time to go manages that farm and oversees five staff. Bassets out and get into trouble. Visit Fieldays Now IGate have a 1 fiancée and farm us is a at 450ha propertyopposite two children.” running 1100 cows. At the Ahuwhenua “I started in a day-toPETER BURKE

Awards was Raharihi’s boss Rebecca Keoghan, recently named Dairy Industry Woman of the Year. She is in charge of all the dairy farms in the Westport area and is proud of Raharihi’s achievement. “I am over the moon and really stoked for Raharihi. What sets him apart is his innate leadership style and passion for his staff and his own development. It’s great for Landcorp and two West Coasters to

FOR THE first time in the 83-year

history of the competition, a South Island dairy farm has won the prestigious Ahuwhenua Trophy for Maori dairy farming. Rakaia Incorporation was chosen from two other finalists –Ngai Tahu Farming Ltd, also in Canterbury, and Tewi Trust, South Waikato. The chairman of Rakaia Inc, James Russell, put the win down to hard work by a diligent team. He says it’s often said that a first time competitor never wins the trophy.

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“We have shown that first time entrants can win and I am proud for Ngai Tahu as a whole,” he says. Rakaia Inc’s 216ha farm Tahu a Tao, near Ashburton, runs about 830 Kiwi-cross cows and is managed by a 50/50 sharemilker. Kingi Smiler, Ahuwhenua Trophy management committee chairman, says it amazes him that every year they find another group of outstanding finalists and ultimately a winner who joins the ever expanding alumni who personify the success of Maori agribusiness

and its valuable contribution to Aotearoa. Rakaia Inc won $40,000 in prizes, and they and the other finalists won prizes to the value of $20,000. Principal sponsor BNZ’s head of agribusiness, John Janssen, says once again the standard of this year’s finalists was outstanding. He says in a year when dairy farming is facing challenging times, it is great to see three outstanding finalists and a very worthy winner. He also says it is great to see two

Maori farms in the South Island make the finals of the 2016 competition. “BNZ is proud to be the principle sponsor of this competition and to be a part of the movement that is raising the standard and profile of Maori agribusiness. All New Zealand farmers can look at the systems Maori farmers have developed and take valuable lessons. There is no doubt that the Ahuwhenua Trophy competition is a catalyst for much of the success of Maori farming,” he says.

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win major awards, which shows that our region punches above its weight,” she says. The head of the Landcorp dairy farming operations, Mark Julian, who was at the awards, also paid tribute to Raharihi, describing him as a great individual. “He’s always had the right attitude and we are proud to have him as part of our business.... But regardless of that he deserves this prize for himself.”

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playing a role in advancing Maori farming interests, says chairman John Wilson. He says the co-op is proud to acknowledge that all three finalists in this year’s Ahuwhenua Trophy awards were Fonterra suppliers. Rakaia Incorporation this month became the first South Island dairy farm to win the Ahuwhenua Trophy; the other finalists were Ngai Tahu Farming Ltd in Canterbury and Tewi Trust in South Waikato. Rakaia Inc runs a 216ha property near Ashburton with 830 cows and has a strong focus on the environment: all farm and household waste is recycled. Speaking at the awards, Wilson pointed out that the three businesses had stepped up during very challenging times. “I acknowledge the leadership shown in your farming businesses; this competition brings together large number of industry leaders.

DairyNZ chairman Michael Spaans presents a medal to finalist, Tewi Trust chair Tuhi Watkinson.

“The common desire is to support Maori in the dairy industry; every two years we are reminded of the great stories of achievement in Maori dairying. “The challenge is how we maintain the momentum after this evening, how we build on the relationships that have been developed.” Wilson says the industry needs to work together to attract more Maori into dairying. Fonterra remains committed to playing a significant role in that, he says. DairyNZ chairman Michael

Spaans told the 700 guests at the awards night that 130 Maori dairy farms are now in the DairyNZ DairyBase programme, which offers a wide range of benchmarks for farms. He also announced the pilot of a Maori dairy cluster initiative where participants will focus on issues most relevant to them and deal with common issues facing the industry; the initiative begins in Bay of Plenty this year. He also reaffirmed DairyNZ’s support for getting more young Maori into dairying.

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DAIRY NEWS MAY 31, 2016

12 // NEWS Partnership sessions at Bank of China conference, New Zealand companies got to pitch their products directly to Chinese companies.

Kiwis matchmaking with Chinese partners PAM TIPA pamelat@ruralnews.co.nz

NEW ZEALAND agri-

cultural companies were able to pitch their products and services directly

to potential China partners in Auckland last week. Dairy companies Auscow Dairy NZ Ltd, Fresco Nutrition and GMP Dairy Ltd were among 120 domestic businesses able

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to talk one-on-one with trade delegates from 55 Chinese agribusiness companies. The Bank of China organised the inaugural China-New Zealand Agribusiness Investment and Trade Conference last Wednesday at the Viaduct Event Centre on Auckland’s waterfront. The 120 domestic agribusinesses sought to matchmake with their Chinese counterparts to discuss opportunities in the fast-growing Chinese market, including trade partnerships and joint ventures. The Kiwis came from a variety of sectors including farming, health supplements, agricultural machinery and farming technology. Bank of China (NZ) chief executive officer David Lei Wang says NZ companies here need the right partners to support them in taking first steps into the Chinese market. Part of Bank of China (NZ)’s role is to act as a bridge linking local companies to the right kind of Chinese business partners -- distribution, strategic investment, production or marketing. Bank of China vicepresident Gao Yingxin told the conference that NZ agribusinesses lead the world in dairy products, stock farming, meat and fruits. Those companies need to greatly increase their shares in emerging markets, he says. “China has huge market capacity for farm

products and needs to import a large number of high quality and healthy agricultural products from NZ.” The Chinese government is vigorously modernising the agriculture sector, encouraging agribusinesses in going global and focusing on making Chinese agricultural enterprises more competitive globally. “Therefore the cooperation of the two countries in agriculture boasts great prospects and potential, capable of breathing new life into their economic and trade exchanges,” says Yingxin. The Bank of China has launched the cross-border investment matchmaking service for small-medium enterprises worldwide. Before coming here it held dozens of similar conferences in the US, Germany, France, Britain, Australia and other countries. At least 4000 SMEs participated in those events and reached 3500 cooperative agreements; at least 70% of the matchmaking efforts proved successful, the bank says. Primary Industries Minister Nathan Guy, who accompanied Prime Minister John Key on a recent trip to China, saw many examples of NZ businesses strengthening their ties in China. Fonterra held a ceremony to celebrate its partnership with Beingmate and the development of its Anmum brand in China. @dairy_news facebook.com/dairynews

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NATHAN GUY was impressed by a presentation in China by magnate Jack Ma, of the Alibaba Group. The group signed a memorandum of understanding (MOU) with New Zealand Trade and Enterprise (NZTE) to support the growth of NZ brands in China. “There are 207 million consumers in China who choose to shop online,” says Guy. “We have an opportunity via the MOU signed between NZTE and Alibaba to do more. “The biggest e-commerce users in the world are in China. They are hardened researchers online. When they discuss NZ 70% of what they discuss online is to do with food and beverage.”

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DAIRY NEWS MAY 31, 2016

NEWS // 15

Eat dairy in healthy breakfast – Olympians PAM TIPA pamelat@ruralnews.co.nz

STARTING THE day with a healthy breakfast, including protein, is a key to performance and stamina, say Olympic athletes headed for Brazil. Dairy is one of those key proteins particularly because it is easy to eat at breakfast time. Fonterra hosted New Zealand Olympic Committee (NZOC) officials and some elite athletes at its Fanshawe St premises to mark the sponsorship of the NZ Olympic team to Rio de Janiero by the Anchor brand. Rio-bound athletes pole vaulter Eliza McCartney, Olympic gold medallist sailor Polly Powrie and trampolinist Dylan Schmidt, plus 2012 Olympics heptathlete Sarah Cowley, all spoke about nutrition and in particular the need for healthy breakfasts to help power their training and peak performance. Some of the athletes not only ate milk and yoghurt but added milk

powder for an extra protein boost. will find out whether he will join the Also speaking was the NZ Olym- squad of 16 travelling to Rio. pic committee chief executive Kereyn “Nick, we are proud you are one of Smith and High Performance Sport NZ us,” Clement said. “We know how much nutritionist Jeni Pearce, who reinforced work goes into being an elite athlete and working for us at the same time.” the message. The fit between the McCartney whipped Anchor brand and the up a chocolate smoothie NZ Olympic team felt and some of her breakright from the outset, fast recipes being used said Clement. in Anchor promotions “Anchor... provides were available to sample. strength and leads to Fonterra research self-belief and the willshows most Kiwis ingness to give anything understand the impora go. That attitude is tance of a good breakhard-wired into the Kiwi fast but only 25% get a psyche.” good nutritional start Leon Clement, Fonterra. It is seen in sport, each day. Leon Clement, managing director in farmers and in the ways we express Fonterra Brands, says being associated ourselves in our communities and on with the Olympic team to Rio is a great the world stage. The breakfast with the NZOC was to celebrate this mindset. partnership for Anchor. “Olympic athletes need to hard-wire A Fonterra employee, Nick Smith, is also on the cusp of joining the Olympic an excellent breakfast into their training team. He is in the men’s hockey team, regime... that will lead to great perforhas made a squad of 25, and this week mance. Unfortunately this same aware-

Rio-bound pole vaulter Eliza McCartney enjoys breakfast at Fonterra head office last week.

ness isn’t hard-wired in the minds of all Kiwis. Fonterra Brands is... promoting the importance of breakfast and in particular dairy as a perfect way to get the nutrition we need,” said Clement.

Recent research by Fonterra Brands found 11% of people said breakfast was not important, that 20% eat breakfast only sometimes, and people under 35 are less likely to always eat breakfast.

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DAIRY NEWS MAY 31, 2016

16 // NEWS

Cow values take a tumble CORAL PHILLIPS

sions regarding the possibility of changing valuation methods. If the NSC value is close to the current herd scheme value, this could be a good time to change because the tax implications will be minimal. Livestock can be transferred from NSC to herd scheme at any time as long as IRD is notified of the change. As the reverse is no longer possible, if you were thinking of changing valuation methods the strategy must be well

RECENTLY THE Inland Revenue Department released the national average market price (herd scheme value) for livestock to be used when preparing 2016 annual financial statements. Dairy cow values have dropped substantially from 2015. On the other hand, other livestock types including dairy bulls, beef “The herd scheme value of a cows, beef bulls, sheep, pigs, milking dairy cow is now only $83 more goats and deer have increased from last than for a beef cow.” year. In the last three years, from 2014 to 2016, the herd scheme value for dairy cows has thought out for the long term. For farmers ceasing ownership of livestock fallen from $1963 to $1655 to $1356. In fact, the herd scheme value of a dairy cow there could be significant tax implications is now only $83 more than for a beef cow. In 2012 exaggerated by the large decrease in values this the value of a beef cow was $1025 versus $2155 year. Also very important is whether the farmer for a Friesian cow. This significant trend down- retains any livestock at all, because this could ward affects dairy farmers as their equity in live- influence which years herd scheme values are stock drops, and there are tax consequences and used in the tax calculation at disposal. Also, if you are thinking of selling the herd in cashflow implications. In a continuing status quo operation, if live- the next few years this could be a good time to stock is already valued on the herd scheme basis switch to the herd scheme. Potentially, values will have increased by there will be no tax consequences following the then and even if the change now results in a decrease. Dairy farmers with stock valued on national small amount of taxable profit, this is likely to standard cost (NSC) may have to make big deci- be offset by 2016 operating losses, as well as

resulting in less taxable profit at the time of sale. This is a similar scenario to last year, but will the values drop any further? No one will know whether we have seen the bottom of the trough until we are climbing out the other side. However, we have until March 31, 2017 to make the decision -- the deadline for filing 2016 tax returns. The final 2016 provisional tax payment for May balance date farmers is June 28. As 2016 has brought a drop in income for most dairy farmers, a review is needed before then of the financial situation. If tax is paid according to what the IRD is expecting it is likely that it will have been overpaid. At CooperAitken, the livestock valuation method will be considered as part of this review. Every farmer’s situation is different, and this is a complex area. Ensure you get the best financial advice available or the consequences could be substantial. • Coral Phillips is an Associate at CooperAitken Ltd Accountants, Morrinsville, Matamata and Thames, email coral@ cooperaitken.co.nz . www.cooperaitken.co.nz

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DAIRY NEWS MAY 31, 2016

18 // WORLD

$600m help for hardpressed Oz farmers SUDESH KISSUN

Australian Deputy Prime Minister Barnaby Joyce says it will help farmers return to profit.

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AUSTRALIAN DAIRY

farmers are to get $600 million taxpayer money to help them endure the slump in farmgate prices. The federal government will provide $58m immediately as recovery loans to suppliers of Murray Goulburn and Fonterra. Both processors recently slashed their farmgate milk prices. Another $530m in concessionary loans will be paid over the next two seasons; the recovery loans will be for terms of 10 years. The lending will be funded by expanding the drought loan scheme to include dairy-specific criteria. Deputy Prime Minister and Minister for Agriculture and Water Resources Barnaby Joyce says the Coalition will immediately help dairy farmers in hardship to enable them to endure these difficult times and return to profit. The Australian dairy industry suffered a jolt last month when the country’s largest dairy co-op Murray Goulburn slashed its farm-

AUSTRALIAN BANKS have thrown their support behind dairy farmers hit by the low milk prices. The Australian Bankers’ Association says the changes to farmgate prices coincide with many dairy farmers facing drought and higher business costs. ABA executive director retail policy Diane Tate says this mix of problems strains incomes and cashflows. “We urge dairy farmers worried about their financial situation to contact their bank, the earlier the better, to see what help is available,” she said. “Banks understand the agricul-

gate milk price to A$5.47/ kgMS, down from the original forecast of A$6.05/ kgMS. Fonterra suppliers were next to reel in shock when the company reduced its payout from A$5.60 to A$5kg/MS. Australians go to the polls on July 2. Joyce says the Coalition is helping farmers now under the Caretaker Conventions, not waiting until after the election. The Government has also announced $21m to fast-track the upgrade of

ture industry is heavily impacted by seasonal factors and price fluctuations. That’s why banks take a longer-term view in agricultural lending. They work with farmers who may be experiencing financial difficulties and can put in place special loan arrangements.” Assistance offered may include: ■■ Deferral of scheduled loan repayments ■■

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the Macalister irrigation district in Gippsland. And it will supply cash for rural financial counsellors and a ‘tactics for tough times’ scheme. Minister for Human Services Alan Tudge emphasises that the Coalition is not delaying help. “We’ve ramped up the number of staff processing farm household allowance claims. An extra 18 people have been brought in to process claims and work directly with farming families on their individual cases, with a special

focus on people in financial hardship,” Tudge says. “Where a farmer is facing real hardship and we have received the full

details, a decision can be made almost immediately. If there is any difficulty obtaining the information we need to assess a claim, farm household case officers can talk to the farmer’s accountant or financial adviser to help get the information needed.” The Government’s one-stop-shop mobile service centres are touring the hard-hit dairy areas of regional Victoria and

gate milk prices late in the season, a re-elected Coalition government will work with the dairy industry to establish a commodity milk price index. “The index would introduce greater transparency and market signals in domestic and global milk prices. The Coalition will consult with the industry on the design of the index that would provide dairy farmers with valuable information.”

Co-op offers premium for GM-free milk EUROPEAN DAIRY

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South Australia. They are staffed by people who can answer farmers’ questions. Tudge says the Coalition will appoint a dedicated dairy industry liaison officer who will work with dairy farmers and local communities to coordinate support and services. Joyce says to help ensure the domestic dairy industry avoids a situation where processors unexpectedly reduce farm-

Arla’s move results from German retailers saying they will pay a premium for products from cows fed non-GM feed. The trend is seen as likely to spread to other markets and Arla wants to move now to add value to its farmers’ milk. Chairman Åke Hantoft says Arla is well prepared to meet the growing demand for GM-free feed. “We own the biggest organic milk pool in the world, for which the feed is by default GM-free. Our Swedish farmers have always used GMfree feed. This means about 20% of Arla’s milk pool already meets this market demand. “There is commercial potential here for us to capture and build on immediately by attracting more farmers willing to convert to GM-free feed,” says Hantoft. He underlines that the decision is based on the commercial opportunity and does not indicate that Arla’s owners are taking a new stand on GM.

“We welcome innovative solutions and new technology which can improve farming and help feed the world’s population in a sustainable manner. We are not closing a door on GM and we will continue to monitor the scientific research into the pros and cons of GM.” Converting to GMfree feed will be a cost for the farmers, but the price premium is prompting Arla to plan to compensate farmers as they convert. This model driven by market demand is also used for organic milk, for which farmers are already paid for the extra feed cost. “Our immediate demand is up to 1 billion kg extra milk during the next 12 months and we expect to be able to pay an extra 1 eurocent/kg milk. The market driven compensation will also be paid to all our Swedish farmers, who already use GM-free feed. We do not know exactly from when, but we are working fast to unfold the details,” says chief executive Peder Tuborgh.

DAIRY NEWS MAY 31, 2016

OPINION // 19

It all starts at the top KEN HAMES

POOR QUALITY

directors around the board table are one of the biggest risks to us as Fonterra shareholders. Directors hire/fire the chief executive, set the strategy, hold management to account and have oversight of the company. Thus the quality of the directors we elect impacts greatly on our co-op’s direction and performance. Having the most capable people improves the quality of the discussion and decisionmaking around the table. But when it comes to voting time, shareholders tend to vote for the candidate they know -not always but usually. It’s

independent directors have been recruited for the board since day one. Anyone who comes forward is assessed by an independent panel, and those who pass muster go forward to the nominations committee. Then it’s up to us as shareholders to vote ‘yes’ or ‘no’ on the prospective directors put forward. We’ll get the opportunity to meet and question them and we’ll get good information on their experience and skills. As shareholders in Fonterra, ownership and control are fundamental to us. In this new system we still have control. The only change is in how we exercise this control: we get to vote ‘yes’ or ‘no’; it’s our say who goes on the board and if we don’t want a candidate we can reject

the table and who is less capable. In future if a sitting director is viewed by the board to be not up to standard then they will not be endorsed and will drop out of the process. As shareholders we have to decide two things and then vote accordingly: 1. Is this a better

him/her. What I like about the appointment process is that candidates are assessed against the skills matrix. This enables directors to be selected to align with the strategic direction and governance needs of Fonterra. It should also encourage good people to come forward. While I personally enjoyed the Fonterra election process and getting around the country meeting shareholders, I understand it’s not for everyone. Apparently, it has put some people off standing. I was a little sceptical of this view until I was talking to a farmer with governance experience and business skills at the recent Networkers conference. He said that he would not have stood under the current system but would consider it under the proposed new system. So I’ve had to change my view. What I also see as positive is the process for weeding out nonperforming directors. Currently as shareholders we have no idea who makes a strong contribution around

not perfect in my view, but it goes a long way to improving performance at Fonterra’s board table. And for me as a shareholder and owner, that’s what matters. • Ken Hames milks 970 cows near Wellsford in two equity partnerships and is a Fonterra supplier.

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What I also see as a positive is the process for weeding out non-performing directors. human nature to support who you know, but does this achieve the best results? I stood for Fonterra in 2011 and have had appointments to other New Zealand boards. I’ve been through election and appointment processes and I’ve been a keen observer of elections and results, so I feel I can make some comments on the choices in front of Fonterra shareholders. We want the best directors. We’ve made it plain in the governance and representation review feedback and at the meetings I’ve attended. The review committee has kept its ears open and come out with its final proposal which acknowledges that. A fundamental change is that future potential directors will be selected and elected on the basis of having the required attributes and skills needed. This isn’t a vague list. It’s a checklist of skills, experience and attitudes considered essential for directors in a business of our size. Essentially this proposal is an ‘appointment’ process in a similar way our

process? 2. Will it give us more capable directors to govern our business? I believe the proposed changes will achieve these two things, so I’m going to get in behind them and vote ‘yes’ to better governance of our cooperative. Sure, it’s

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DAIRY NEWS MAY 31, 2016

20 // OPINION RUMINATING

EDITORIAL

Give bobby calves their due

MILKING IT... Forget the names

And polish the letterbox!

Help where it’s needed

DEPUTY PRIME Minister Bill English admitted he isn’t a regular speaker at dairy events; mostly this falls to Primary Industries Minister Nathan Guy and Science Minister Steven Joyce. So during the question and answer session at a recent DairyNZ Farmers Forum in Hamilton, English faced some questions he found curly. Asked one farmer, “Mr English we know you are one of the three men who make all the key decisions in the Government...?” Replied English, “Who are the other two?”

STATE-OWNED FARMER Landcorp also came under the microscope at the DairyNZ Farmers Forum. English described the SOE as a poor investment that returns little, if anything, to the state coffers. One farmer said despite Landcorp’s financial shortcomings its farms are easily identified -- fancy signage, immaculately kept entrances and paved driveways.

FONTERRA SUPPLIERS in Australia can dip into a $600 million aid package announced last week by the Federal Government. ‘Soft’ loans, repayable over 10 years, are designed to bring relief to farmers facing massive cuts to the farmgate milk price this year. It’s not happy reading for Fonterra shareholders in New Zealand: they have faced low prices for two seasons, with the prospect of a third season looming. Yet there has been no state support. Instead, Fonterra farmers are still forking out money to supply milk to schools and breakfasts for needy children.

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Tastes like pea MILK HAS another competitor on the supermarket shelf. Pea milk, a liquid derived from yellow split peas, is the latest non-dairy milk to turn up on grocery shelves in the US. It joins hemp milk, brown rice milk and cashew drinks on the growing list of alternatives in the now-booming business of dairy alternatives. Nondairy milk sales rose 9% in 2015 to US$1.9bn, while dairy milk sales fell 7% in 2015 to US$17.8bn; and they are expected to drop another 11% through 2020, according to a study released in April by market research firm Mintel.

IT MAY be the ‘quiet’ time of year for dairy farmers, but clearly most are not sitting relaxing in their armchairs. Many are preparing their farms for the onslaught of calving in the cold and wet for what will seem like endless hours. And they need to have all their farm equipment in top working order and new staff briefed on what is expected of them and how best to manage this annual major event. But this season a raft of new regulations are coming into force on health and safety, environment and animal welfare. A major issue for dairy farmers is the handling of bobby calves. DairyNZ has been proactive in this, working with the Ministry of Primary Industries and the New Zealand Veterinary Association to run farmer workshops to make sure they clearly understand their obligations under the new regulations. Vets run them and they’re a smart move because farmers will get informed, practical answers. According to DairyNZ, the workshops give farmers confidence to risk-proof their farm, fine-tune calf care processes and train their teams. They also confirm fit-for-transport requirements, identify good calf loading facilities and help refine communications between farmers and truckies. Also, health and safety seminars run by Beef + Lamb NZ are proving popular with dairy and sheep and beef farmers. Come late June, BLNZ will have run about 70 seminars nationwide – double the number they intended, such is the interest. That wretched video shown by the animal rights group SAFE has sparked serious action, though to be fair new regulations were even then in the pipeline. The new laws are explicit about handling bobby calves, sheeting home the responsibilities to farmers, truckies and processors. For example, no longer can bobby calves be simply manhandled off a farm and onto a truck. Proper shelter and loading facilities must be provided and there are laws requiring bobby calves to be fed close to the time they are picked up. There is no excuse for farmers saying ‘we didn’t know’, given all the publicity in the media and by dairy companies, DairyNZ and others. Bobby calves may be a by-product of the dairy industry but until they are slaughtered they must be treated humanely. The new regulations are good and the vast majority of farmers clearly agree with them.

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DAIRY NEWS MAY 31, 2016

OPINION // 21

Director selection too important to neglect STU TAYLOR

WHEN I interview for a new team member on our farm, we go through an extended process. It takes a while. You want to get a feel for the person, their experience, whether they’ll be a good fit in the team. A good hour can go by, and then a bit more work goes into checking references before making a choice. Often we have a second interview to get a real feel for the person. It all takes time but it is important; it’s time well spent. Compare that to the process we use to select our Fonterra directors. The process is totally unsatisfactory. We read their ‘job application’ in their candidate profile. We listen to them speak for two minutes, then we ask questions for 10 minutes with a group of other people. It’s just not working: we are using a broken process to select our representative. The skill and ability of a person on the Fonterra board has a major influence on all our businesses’ success and is arguably one of the most important roles in the country and in New Zealand’s success. How can we properly understand the skills, ability and character of a person who is going to be our leader and representative on the Fonterra board? It is too important a decision to leave to such an inadequate process. I wouldn’t use this process to select people to join my team so why use it to select a person to lead our co-op? We need directors with the skills to create a dynamic and skilful management team and they need the skills to be able to direct that team. They need the skills and experience to understand our customers. They need to understand it is a dynamic world and our customers will change. We need to be ahead of that change, not behind it. They need the market knowledge to know who our customers will be in

the future. They need the vision to see what our competitors are doing, and be there before they are. They need to lead NZ’s most successful organisation and industry. They need the skill and integrity to make us proud and, most important of all, they need to be able to take us, the Fonterra farmers, with them. I’m not knocking the current line-up, but we need to do it better. Repeating the process from the past will get the same results. We have to look forward and make it better, for ourselves today and for the next generation who will thrive off what we do. The governance talk seems like an unimportant side-line matter -- more of a power play between the old guard and the new; but it is more than that: it is setting up this co-op to perform in the future. In this tough year everyone has more important pressing needs. But we need to address this now. We owe it to ourselves and all the farmers before us to be involved. Over 150 years has gone into building a great industry by working together in a cooperative. We have seen our parents and grandparents work and struggle to see their farms succeed and our cooperatives grow. Would we tell them change now for the better is too much trouble? What we and they have created is worth protecting. Times are changing fast. The question is, what are we going to do? Staying put now is not going to propel us into the future. The leadership and the skill of our directors today are not what was needed 50 years ago, or even 10 years ago. We need great leaders who to represent this industry we have created -- leaders and directors who represent us and make us proud. They need to have the skill to represent us at home to the rest of NZ, and overseas, to make us proud and successful. I support changing how we choose our direc-

tors. This is the ultimate job interview for a serious position in our co-op, one of leadership designed to take us forward. It should be measured, thorough and able to match skills

and qualities with the job at hand. Remember we still will have the final say on who gets selected as our directors. We have the power to veto a selection. Just

vote; it is too important to not care. • Stu Taylor is a Rangitikei farmer, milking 900 cows and is a Fonterra supplier. Stu Taylor

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DAIRY NEWS MAY 31, 2016

22 // AGRIBUSINESS

Talk to your bankers, accountants PAM TIPA pamelat@ruralnews.co.nz

IT IS amazing how people

don’t ask questions of their accountants, says Craig Sanders, principle of Craig Horwath, Te Awamutu. “You are the boss, you are paying the money for the fees, so you need to ask the questions,” he says. Many people struggle with change and when they are told things aren’t going right they struggle to come to terms with that. “A larger percentage than you would think would be in that camp,” he told Dairy Womens Network. “Sit down with your bankers and accountants and use them as part of your team because they are there to help.” Don’t put your head in the sand if things are not going well, he says. You

need to be upfront and talk to people about it. “If you are having trouble paying the bills don’t leave it too late and say ‘I need an increased overdraft’. If you get in first life is a lot easier. “A lot of people, when they get into financial difficulty, like to pretend it is not happening. “That is the worst thing they could do. You need to be upfront, to talk to your bank.” It is better to ask for money ahead of time than turn up saying you have $200,000 in overdue debts, he says. Sanders says accountants traditionally have talked to clients when things go wrong rather than beforehand. “We need to change our relationships to being more forward thinking. We need to be on the front foot and talk about

Craig Sanders, principal of Craig Horwath, Te Awamutu.

things before they happen rather than afterwards.... Accountants generally tell you after 12 months how much your costs were.

How useful is that to you?” In a presentation ‘Riding the Milk Price Roller Coaster’ Sanders said farmers should focus

on controllables in their businesses. Farmgate milk price, stock prices and fuel prices are not controllable. But they have some control in dealing with seasonal conditions, legislative changes in health and safety and environmental matters, interest rates and feed prices. They could hedge or mitigate risks around loss of key personnel, fertiliser, repairs and maintenance, tax and drawings. Sanders says drawings is the toughest issue to discuss with clients and the biggest thing husbands and wives fight about. Yet drawings are among the few things a farm business can really control. In prioritising risk he advises farmers to handle those with the greatest loss or impact and the greatest probability of occurring first, including interest rates. He personally favours fixing interest rates because you then know what your position is and can go forward. Sanders says the dairy industry is praying for a rise in commodity prices. “[But] you really need to say, ‘let’s budget for it not increasing and work out how we can change our businesses to meet what the prices are now’.” You need to assess the value of the resources used against the value of risk (loss) being mitigated. “You could talk about life insurance, for instance, which can be

really expensive. You might be insuring mum or dad and it’s a very high cost because they are getting into their late 50s or 60s and it is costing $10,000-20,000 to insure them; but you have to work out whether they are worth $1 million to you; is it a good scheme? “We can look at the cost of things or the value of things; you’ve got to put it into perspective.” Farmers need to review their debt risk. “If you have a debt-tovalue ratio of 45% and if your drawings and farm working expenses will be more than a $2/kgMS loss -- which is what I am seeing out there – that means you will be going backwards a couple of hundred grand a year. “If the commodity prices don’t change and you don’t change the way you do things, you could go from a healthy loan-tovalue ratio to a ratio where you might need to talk to credit [personnel]. Your bankers might have you talk to the credit teams in Auckland or similar. “You could be only a few seasons away from [switching] from being quite healthy to being unhealthy from a risk point of view. “I am seeing systems where they are losing $2/ kgMS via farm working expenses -- before drawings. You can’t rely on the price going up and the banks can’t back your losses forever. You need to

look at your business and where the costs are.” Three major credit risks to consider: ■■ Your underlying rate moving up ■■ Your credit costs increasing due to changes in your creditworthiness or a bank’s credit appetite ■■ The risk that you cannot access cash to fund losses or future growth. Underlying rate: “At the moment the interests rates are working out well for us but if they go up sharply.... When you are used to paying 5-6% interest and it goes to 9% that makes a big difference.” Credit costs: “As your equity decreases the banks might want more margin. You don’t want to find yourself all of a sudden [unable] to pay your creditors. It has happened in the farming sector before.” Options: ■■ Products – fixed rate loans, derivatives such as swaps and options ■■ When considering products think about what you are hedging, i.e. underlying vs total cost. ■■ Management decisions: additional security to improve credit margin. Clarify how you will improve credit margin, i.e. no surprises, no excesses, sticking to budget. Risk should be a standing agenda item as part of your annual and ongoing review process.

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KIWI MEN are the worst procrastinators in the world, and that is seen in succession planning, says Sanders. “I am nationally getting involved in succession planning and I am seeing some good, bad and ugly stuff,” he says. “For example, the son has been milking in the shed with dad for 20 years and dad says ‘it’s all going to be alright’. He has worked for a minimum wage and he has two sisters and a brother who work off the farm. “Suddenly Dad dies and it all has to be cut into fours. There is no acknowledgement of the guy who has been working in the shed, doing all the work and living on a minimum wage while his brothers and sisters were out earning hundreds of thousands of dollars. He gets

shafted. “In your business you need to get that sort of stuff sorted out.” Sanders has worked in Europe and the US where they book their holidays a year in advance; Kiwis do it two days before. “Kiwi men like putting stuff off, they don’t like acknowledging it…. I am the same, I admit it.” He now makes a tactical move in approaching succession planning for clients: he phones when the husband is out milking, about 3.30pm. “You get hold of the wife about succession planning and it starts happening.” He remembers one client he talked to for five years and couldn’t get him over the line; he talked to his wife once and the man came in the next week.

DAIRY NEWS MAY 31, 2016

AGRIBUSINESS // 23

United workforce could be a key to success PAM TIPA pamelat@ruralnews.co.nz

A KEY attribute of suc-

cessful leaders is they unite people, says the chief executive of Ballance AgriNutrients, Mark Wynne. How dairy farms today unite their workers could be a key to their success, he says, sharing advice on how his company unites its workers. “If a fertiliser company can unite people, surely farmers can do it in their businesses,” he says. “We all live in a very hungry world: there are about six billion people globally and growing every day and they have to be fed

High performing teams in sport have the same drivers as high performing teams in business, says Wynne. “Does everyone in your team know where you are going? You will know where you are going yourself, but do your team or workers know where they are going?” he asks. “The next thing is, what is my role? Job titles mean nothing: people need to know what their role is. Can your workers answer the questions, what is my role, what are the expectations? “You [answer] that by writing down objectives that are crystal clear about what is expected [of

“Every one of the All Blacks knows his role in set play, let alone how he is to play in free flow.”

every day.” If there was no fertiliser in the world right now, 50% of the population would starve to death. That provides a ‘higher purpose’ for a fertiliser business. “Our dusty pile of fertiliser which eventually comes onto your farm actually plays a key role in uniting our people,” Wynne told the Dairy Womens Network conference, which had the theme ‘Unite to Succeed’. Ballance Agri-Nutrients is a sponsoring partner of the network. “The one thing we have in common with all our shareholders and customers is that 15% of Earth is topsoil, plus the little bit that grows on top. When we look after that, you are successful in your businesses,” he says. “We have worked this up with our team to ask ‘how do we make this our purpose, what is our purpose? “It comes down to a sustainable future: our purpose is creating the best soil and feed on Earth together. This is for farmers’ productivity and also for the next generation and the generation after.”

people] in their role.” This happens in successful businesses and sports teams. “Every one of the All Blacks knows his role in set play – let alone how [he is to] play in free flow.” And they spend days, months and years practising and they understand exactly their role. The third part is, ‘how am I performing’? Every worker, every sports players needs to know how they are performing. “Positive feedback – we are all into that one,” Wynne says. “What about destructive behaviour: are you nipping it in the bud? High performing teams address good and bad performance in real-time; not at the end of the year at a performance review, but in realtime. “These are the three things on the success side: uniting your team then driving to success. [Ask] where are we going, what is my role and how are we performing? “If your team can ask those three questions there will be a very high chance they will be a high performing team. “It is not all just about hard work; you need to

celebrate successes... and best practice. Spread those stories across rural New Zealand and hopefully into urban NZ as well; celebrate success internally and externally. [Then]... when you have

bad days, those celebration moments will carry you through. “So unite your team, your company with a higher purpose. Drive your team for success through those three things: where

Mark Wynne, Ballance chief executive.

are we going, what is my role, and how am I performing?” Last but not least, have fun, says Wynne. @dairy_news facebook.com/dairynews

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DAIRY NEWS MAY 31, 2016

24 // MANAGEMENT

Farmers give the thumbs up to bobby calf rules DAIRYNZ IS running

seminars nationwide on caring for bobby calves to raise farmer awareness of new animal welfare rules. In Levin last week about 16 farmers attended a day-long seminar run by local vet Janine Barber, herself a dairy farmer in partnership with her husband. The seminar covered all aspects of caring for bobby calves and even tested the knowledge of farmers, asking such questions as, how many bobby calves are produced (about 2 million), what are some products made from bobby calves (a few said lipstick) and what percentage are made into petfood (2.5%)? Most farmers attending said they had a good handle on the new

regulations. But Cam Lewis says he’ll probably have to build a new facility for loading bobby calves onto trucks, given that the new laws will prevent people from carrying bobby calves from the calf shed to the truck. Otherwise, he says, the new laws are pretty much common sense. Doug Easton says he will also have to look at this matter; Megan Kernohan, a calf rearer, says the laws are straightforward. Much of the discussion was about handling bobby calves before and when they leave the farm: the need to feed the calves as near as possible to their departure time, and making sure animals are fit to be transported. Farmers were shown

an eight point compliance checklist prepared by DairyNZ, MPI and the NZ Veterinary Association. Barber says many of the farmers were unaware of the time lapse between calves leaving a farm and

being slaughtered, hence the need to feed them as close to pick-up time as possible. The new regulations will also incentivise farmers to improve their onfarm processes,

Levin vet Janine Barber.

she says. “I can give you a personal example: my husband used to do all the

calf rearing on our dairy farm and I took that over about five or six years ago. “I had this massive

LEGISLATION TO KICK IN NEXT MONTH DAIRY FARMERS in the lower North Island are using the lull between drying off and calving to learn more about the changes in new regulations that will kick in with the new season. Dallen Olsen, Fonterra’s manager for cooperative affairs in the region, says many dairy farmers have attended the seminars on the new health and safety regulations being run by Beef + Lamb NZ. And they are swotting up on new nitrogen management issues and the new animal

welfare rules on bobby calves. Olsen says this is a good time of the year for farmers to examine the regulations and think about compliance. He says the seminars run by DairyNZ and BLNZ are well attended. “Fonterra is doing all it can for farmers. We have launched a support package, so over the next seven months timely deals will be introduced in our Farm Source stores. These deals will coincide with particular activities onfarm, such as calving, and help support our suppliers,”

he says. Olsen says Fonterra staff are talking to farmers, telling them about the co-op governance and representation issues they will have to vote on soon. Farmers must get engaged in this process, he says. And now is the time for farmers to prepare budgets based on good and not-so-good scenarios. Olsen says cows in the lower North Island are in good condition and he hopes the weather won’t cause problems in the lead-up to calving.

argument with him because I wanted to set it up so that I could feed the calves really fast. I told him, ‘I can do this in 90 minutes but I need this amount of money to invest in the system to make more money’. “He said ‘ok, try it’. “At the end of the first year I made him $35,000 and only spent 90 minutes a day feeding calves and lost three calves out of 150. The year before they spent 2.5 hours on feeding the calves, lost 40 and didn’t make any money. “How you run your processes and how you use them makes it better for you and the calves,” she says.

DAIRY NEWS MAY 31, 2016

MANAGEMENT // 25

Critical season for guarding soil health BALA TIKKISETTY

WINTER IS a critical

time for livestock farmers, with increased risk of erosion and sediment getting into waterways. Stock compacting wet soils can reduce pasture growth and productivity, and bare soil caused by heavy grazing can be washed into waterways. So it’s a good time for dairy, beef and deer farmers to consider the impact of stock wintering on soil health and water quality. This should include livestock density, site selection and management of wintering systems. Feed pads and standoff pads are options for protecting soil physical structure over wet periods

combine a feeding platform, stand-off facility and animal shelter. Sheltered feeding is done on slatted concrete floors. As the cows stand on the slatted floors, their effluent drops through the slats and into a concrete lined bunker beneath. When building a wintering pad allow for solid and liquid waste disposal. Design the pad so that the contaminants run into your effluent management system. Locate the feed pad or stand-off pad well away from any waterway. Sediment ponds can be placed downstream of wintering areas to contain peak storm flows. These ponds can capture sediment and particulate phosphorous. Soil particles need time to settle. Get professional

Stock compacting wet soils can reduce pasture growth. by preventing stock trampling pasture so heavily. The feed pad is a dedicated concrete platform where supplementary feeds are fed to stock. Besides protecting pasture, higher feed efficiency is achieved as the wastage is reduced to about 5% as against about 20% and more when silage is fed in paddocks. A stand-off pad is a dedicated loafing area for stock, with a softer freedraining surface of, say, wood chips. Since stock may be withheld from pasture for longer periods, the area required per cow has to be bigger, say, about 8 sq m. Capture of effluent is an important aspect of stand-off pads. It requires that the humped and hollowed base is sealed underneath with compacted clay, an artificial liner or concrete, and the effluent directed into suitable sealed storage. Animal shelters are an expensive wintering option but increasingly popular for convenience, animal welfare and productivity. They

advice on the right amount of settling time for your situation. Sacrifice paddocks can be used when other options are not available, as a last resort, to stand animals off usual pastures when it is very wet, or as an area to feed animals hay and silage. The disadvantages of sacrifice paddocks include soil structure damage and possible animal health problems such as lameness and mastitis. If soil potassium levels become too great (potassium is excreted in urine) it may also predispose the calving cow to metabolic problems. In summary, it’s suggested farmers focus on the following for soil and water protection: Graze wettest paddocks in drier periods. Plan your stand-off strategy – especially if you have no constructed standoff facilities. Strip graze from the back of the paddock. Remediate winter-damaged areas through summer cropping. Leave good covers going into winter and leave buffer strips along drains and watercourses.

Maintain races to reduce contaminants and make cut-offs to divert sediment into paddocks. Do not feed out supplementary feeds

in areas where runoff water may reach any water body. If possible avoid feeding out in these paddocks altogether. • Bala Tikkisetty is a

sustainable agriculture advisor at Waikato Regional Council. Contact him on 0800 800 401 or email bala. tikkisetty@waikatoregion. govt.nz.

Waikato Regional Council’s Bala Tikkisetty is urging farmers to consider the impact of stock wintering on soil health and water quality.

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DAIRY NEWS MAY 31, 2016

26 // MANAGEMENT

Industry’s next superstars ready for action SEVENTEEN BULLS

have hit the big time and are set to become household names. After a rigorous fouryear process, these young superstars graduated this year as CRV Ambreed proven sires, which means they are considered to have the highest genetic merit. CRV Ambreed’s proven sires feature in the herd improvement company’s annual catalogue. Global product manager Peter van Elzakker says they are sought after by dairy farmers in New Zealand and overseas, and their production and performance traits make them an essential part of the success of NZ’s dairy industry. “The genetic merit of these elite sires will ultimately ensure dairy farm-

Zen F9J7... the highest crossbred graduate.

ers’ herds will be easy to manage and efficient,” says Elzakker. The selection process starts each year when CRV Ambreed’s sire analysts travel the country to find NZ’s best cows that will produce the next ‘super bull’. Farm visits in 2011 led to the new graduates being 17 of roughly 1600 bull calves nominated that year for consideration in CRV Ambreed’s progeny test programme. “Our breeding team

also use their specialist knowledge of cows and their families to assess the potential of each bull calf. We ended up selecting 150 bull calves to be part of CRV Ambreed’s progeny test programme that year,” van Elzakker says. Semen from each of the 150 progeny test bulls was distributed to contracted progeny test herds around NZ. Their daughters were herd tested to measure their milk production and type, and they were evaluated for

their suitability in different farming systems and environments. The very best 17 bulls have now graduated – the absolute cream of the crop in the industry. Van Elzakker says the new graduates add to CRV Ambreed’s already strong genetic offering for dairy farmers this year. “In the Friesian lineup we have a good balance of bulls fitting into all farming systems, from high efficiency bulls who will do a great job in the lower output category, to high production bulls that will fit into higher input systems. “Our Jerseys stand out with a line-up of bulls that will produce a good size cow with exceptional protein and production, great conformation and superb udder traits.”

Make sure to clean machinery before setting off on Gypsy Day.

Don’t carry pests, pollute roads GYPSY DAY is here and farmers are

urged to take extra care. With velvetleaf wreaking havoc in many regions, farmers are being urged to protect farms from pest plants by ensuring machinery, vehicles and equipment are clean in the lead-up to gypsy day. Waikato Regional Council says recent investigations confirmed unclean machinery caused the spread of velvetleaf infestations between some farms in the region. “Over the past month we’ve investigated pathways to velvetleaf infestation in Waikato,” says council biosecurity spokesman Patrick Whaley. “It’s been a complex task, but we’ve been able to link the spread of velvetleaf to infested maize crops and silage, and unclean machinery. “It’s clear that farmers and contractors have a role to play in preventing the spread of pest plants and weeds by good onfarm biosecurity practices. “Machinery hygiene is especially important with gypsy day coming and the movement of stock, machines and vehicles between farms.” Machines must be cleaned any time they are moved between properties. Any form of plant or soil can harbour pests or weeds. Ideally, machinery wash-down should be done on the property prior to movement, containing any problems at source. Alternatively it may be cleaned in a purpose-built facility, but with care taken not

to risk pest spread during transport to that facility. “Pest plants such as velvetleaf can have a massive impact on the productivity and profitability of farm businesses, so farmers and contractors need to be extra vigilant when moving between properties,” Whaley says. Gypsy day occurs in the week leading up to and immediately following June 1 each year. The council also reminds farmers to stand stock off green feed before trucking them, to cut the effluent mess on roads. “Farmers have a vital role to play in this,” says the council’s stock truck effluent coordinator, Isy Kennedy.

LAST-MINUTE TIPS The regional council recommends that farmers: ■■ Confirm stock pick-up times in advance to avert confusion ■■

Move stock close to the loading ramp the day before, when possible

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Stand stock off green feed for a minimum of four hours (with water)

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Use dry feed before transport because it results in less effluent.

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DAIRY NEWS MAY 31, 2016

28 // MANAGEMENT

Safety culture on farm a key aim PAM TIPA pamelat@ruralnews.co.nz

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THE NEW workplace health and safety legislation is trying to engender in farming a safety culture, says Kevin Johnstone, of safety and risk management company QSI International. Johnstone spoke at a recent a Beef + Lamb NZ farm safety workshop at Helensville. There are three components to this: a safety management plan, safe work procedures (written), and the necessary ‘tools’ and forms, he says. “I can hear you saying straight away ‘yeah I know all this but the fact is you can’t legislate for everything, you can’t write everything down, you can’t mitigate everything’. Of course you can’t… and you will see the new act takes account of this,” he says. Risk and hazards are two different things. Risk is the possibility of harm – what might happen to a person, such as death or injury, should they be exposed to a hazard. For example, a hazard is electricity, the risk is electric shock. “The level of risk is determined by you assessing the likelihood of something happening. “The act also talks about what is reasonably practicable: is it reasonably practicable for you to be expected to do something about a risk?” Safety management systems The purpose of these is to ensure everyone on the farm is thinking about safety. Key components are: ■■ People know what they’re meant to be doing ■■ They are trained for the job ■■ The hazards are identified and risks are managed ■■ Equipment is safe ■■ Visitors and contractors are made aware of relevant hazards and risks ■■ Contractors have their own safety management systems in mind for their work ■■ People’s wellbeing and the environment is monitored. It includes the safety management plan, safe work procedures and tools and forms. He says many farmers may think they are already doing those things and that may be true. The legislation has moved away from being prescriptive, e.g. do this, don’t do that, to more flexible and intelligent risk management by the operator. “That is not putting all the weight on your shoulders or finger pointing; it is trying to get you to grow the safety culture. “It is a good idea to sit down and review this annually, and have on record your annual review of objectives, incidents, changes in farming operation, changes in legislation or recognised good practice.”

Kevin Johnstone

Risk management The risk register should reflect the main risks on your farm. “It is understood that a farm has many hazards and you are not required to document them all -- only the essentials.” A risk register should not exceed two pages. “The business of managing risks has three steps: identifying hazards, testing the risks, and putting in place [ways] to minimise and bring those risks under control. Your workers are integral to this process.” You should assess the likelihood of harm and any likely consequences. For instance, riding a quad or a 4x4 on a steep paddock may be medium risk in summer but high risk in winter, so you probably wouldn’t do it then. A bridge which needs repair will be low risk if it spans only a 30cm drop but high risk and needing immediate attention over a high drop. Control measures include looking at whether there is another way to do a high-risk job, moving it away from people at risk, safe work procedures and further training, warnings or protective equipment. Dynamic risks Some risks crop up unexpectedly and no procedure or control exists for these, says Johnstone. The term ‘common sense’ is frequently used but Johnstone warns that one person’s definition of common sense is not necessarily another’s. He gave an example of working overseas where he was encouraging workers to use their initiative more – until they ‘fixed’ their water supply by filling with fresh water a truck used for emptying the latrines; then they hitched it to the drinking water system. He learnt from that incident that some people need closer supervision. Farm inspections Johnstone says farmers do farm inspections in their heads whenever they move about their farms or businesses. “It doesn’t need to be a great formalised checklist. If somebody asks ‘when did you last do a farm inspection?’, the honest answer would probably be ‘about an hour ago when I drove around in the ute’, because you are assessing the safety and operation

of your farm and your undertaking.” Such an inspection should include looking for any new hazards, hazard controls that aren’t working and confirming that workers are following farm safety rules. Safe work procedures These are the primary means of managing key risks in key activities. A farm should have bullet point guides to how you want these operations done -- a good guide to new workers and others on how your farm operates. Roles and responsibilities A ‘person conducting business or undertaking’ (PCBU) is likely the farm company or owner. Under the terms of the act he is expected to provide or maintain a safe work environment. Directors and trustees also have a responsibility. “The days of being a remote owner – sometimes even in a neighbouring country – don’t get you off the hook in respect of your responsibility. You have a responsibility to make sure the PCBU is meeting their obligations. Employee management Employees should have a job description, should have supervision until competent to do a task safely, should have training and there should be two-way communication. Johnstone says a job description of only a few short sharp sentences describing the role is sufficient. You have to ensure workers are competent for a job. For instance, if you are fencing in a remote area you might send ‘Fred’ who has been doing it for 40 years and you know he is fine. If you have a new 17-year-old you need to know he has had training and practice; you would probably send someone with him and you would check on him. Emergency management What does the act expect of you? You should have first aid equipment and it should be appropriate to the risk. A first aid kit with one Band Aid and a kid’s aspirin is “not much use to man or beast”. In an environment with risk of serious injury you need an adequate first aid kit. Maintenance Vehicles, machinery and equipment must be maintained in safe working order. “The act is quite clear about this; you cannot operate dodgy gear.” Notifiable event reporting A fatality, notifiable injury or illness or notifiable incident must be reported to WorkSafe NZ by the fastest means. The site should be preserved for a major incident only. Notifiable injuries and illnesses are those requiring immediate hospital treatment, exposure to a substance which requires medical treatment within 48 hours, and specific notifiable illnesses.

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DAIRY NEWS MAY 31, 2016

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TOY5025_RN Q2 TDA Fieldays_390x265mm_v3.indd 1

19/05/2016 12:15 pm

DAIRY NEWS MAY 31, 2016

NZ NATIONAL FIELDAYS // 33

Business as usual at Mystery Creek WHAT DOWNTURN? asks National Fieldays chief executive Peter Nation. About 95% of sites at Mystery Creek were pre-sold by November last year; there is a waiting list of businesses keen to exhibit at the 2016 Fieldays. Nation says the Fieldays has longstanding exhibitors, most turning up every year since its inception 48 years ago. “They take the long term view; we all see downturns,” he told Dairy News. “They come here to to realign themselves with existing customers, and they come to show off their brands and show all their new innovation and products. “We have 300-400 media people attending, so the exhibitors get great exposure. “Our exhibitors also come to entertain their guests, inviting them to their marquees to entertain them and thank them for their business. “There is a whole lot of stuff going on here that is not visible; it’s not just people standing a stand and doing a brand.” To meet the growing demand from exhibitors, the National Fieldays Society spent $8 million last year, filling a

lake and creating 174 new sites. Nation says the Fieldays remains a melting pot for urban and rural dwellers -- the objective of its founders. “We are focussed on keeping it real to its roots. When six people founded this organisation 48 years ago the founding objective was to bring town and country together and advance agriculture. We are careful to maintain focus on that.” Nation took over as chief executive this year, after 11 years as a board member. One of his first official tasks

was to launch the Fieldays at a breakfast in April. “For the last 47 years we have reached June and opened the gates after sending out a few media releases. This year we decided on a launch, to get

people talking about it.” About 100 Waikato agribusiness leaders attended a breakfast with Primary Industries Minister Nathan Guy. The four-day event opens on June 15. Nation expects 120,000-140,000 vis-

itors through the gates, including about 3000 overseas visitors. Mystery Creek will be transformed into “a little city” for four days, he says. About 10,000 staff will work at exhibition sites and the venue.

TALE OF THE TAPE ■■

1100 exhibition sites, 95% sold by November last year

■■

The four-day event pumps $370 million into the national economy and $140m into Waikato

■■

3000 international visitors

■■

120,000-140,000 visitors expected

■■

10,000 exhibitor staff

■■

300 media registrations expected

■■

During the event Mystery Creek’s daily power usage is the same as Te Awamutu’s

■■

Mystery Creek also hosts Equidays, conferences, weddings and scout jamborees.

Fieldays chief executive Peter Nation.

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DAIRY NEWS MAY 31, 2016

34 // NZ NATIONAL FIELDAYS

Celebrity chefs ready to cook up a storm Brett McGregor will be at the Fieldays.

THE FIELDAYS Kiwi’s

Best Kitchen will be a hub of delicious creativity during the four-day event. Celebrity chefs Neena Truscott and Belinda MacDonald, Brett McGregor, Michael Van de Elzen and Chelsea Winter will take the stage in the Kitchen Theatre to show visitors how the masters do it. Allyson Gofton will make a special appearance. A popular Fieldays event, Kiwi’s Best Kitchen shows exclusive Kiwi fare from well-known and emerging brands, says head of events Lee Picken. “We’re thrilled with our selection of chefs this year, and excited that Allyson Gofton will make a guest appearance,” she says.

“Every year we look to who is popular with our visitors and who is doing something different in the kitchen that particularly

relates to good, wholesome Kiwi food. “Seating in the Kitchen Theatre is always full so we recommend people

get to the demonstrations early so they don’t miss their favourite cooking celebrities.” On Wednesday, 2015 My Kitchen Rules winners Belinda MacDonald and Neena Truscott will open the demonstrations in the Kitchen Theatre. With a holistic approach to their cooking ethos, the Cambridge locals have a focus on nourishing and delicious seasonal foods, while also keeping their recipes gluten and refined-sugar free. Thursday will welcome 2010 Masterchef winner Brett McGregor for his second year in the Kitchen Theatre. A well-seasoned traveller, McGregor’s passion for trying new flavour combinations translates to

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CAREERS AND education in farming and other primary sector industries will get a push at Fieldays. The Fieldays careers and education hub will be peopled by leaders in these fields. Would-be students will get to hear ‘career champions’ stories and panel discussions and debates; they will also be able to speak with farming and rural businesses to find out about study opportunities and career paths within such businesses. Fieldays, supported by its principal partner The University of Waikato, and GrowingNZ, NZ Young Farmers and St Paul’s Centre of Excellence in Agricultural Science and Business, will give young people opportunity to explore a future in agriculture and other aspects of the primary sector. “Fieldays is pleased to provide an interactive space dedicated to education,” says Lee Picken, Fieldays head of events. “It’s through increasing the awareness of agri education and careers that we will advance agriculture. The Fieldays careers and education hub facilitates interaction between those wanting to find out more about ag careers and established agribusiness and education programmes.” GrowingNZ will be in the hub to showcase the myriad pathways for young people in horticulture.

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tasty and easily accessible meals. Judging the Fieldays Rural Bachelor culinary efforts will give him his first challenge before he demonstrates his own distinctive cooking style. New Zealand Hospitality Hall of Fame inductee and multiple award winner Michael Van de Elzen will be onstage on Friday. Saturday sees one of NZ’s favourite chefs and 2012 Masterchef winner Chelsea Winter take over the Kitchen Theatre to share her ‘simple made special’ philosophy. Gofton will take the stage on Saturday at 2.15pm in a special guest appearance, thanks to Fieldays Society partner Hyundai.

Careers and education hub

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Visit us at Fieldays 2016 June 15-18 SITE: F30

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DAIRY NEWS MAY 31, 2016

NZ NATIONAL FIELDAYS // 35

Innovators to rub shoulders with investors THE FIELDAYS

Innovations Centre should be at the top of visitors’ lists this year, say the organisers. This is where inventors – from backyard to established companies – present their latest innovations on a global stage. Fieldays has announced a new element to the 2016 Innovations line-up – the Fieldays Innovations Capital Event, partnered by Enterprise Angels. Entrants will get to network with industry influencers, investors and agribusinesses in an effort to connect them with their targeted markets, says Gail Handricks, innovations event manager. “Fieldays Innovations enjoys a high-level of exposure during the four

days and the Capital Event will enable entrants to connect with investors to gain an understanding of what is required to attract investment.” Enterprise Angels executive director Bill Murphy says bringing innovators and investors together in the Capital Event is an opportunity for both sides. “Innovations entrants seeking capital to drive their innovation forward will be given the opportunity to meet with experienced agribusiness investors at the event, and depending on investor interest shown, entrants will be invited to pitch for investment later in the year at the Fieldays Innovations pitch event.” The Capital Event will be held on Thursday

June 16 from 4pm in the Innovations Centre. www.fieldays.co.nz/ innovationscentre

Fielday Innovations enjoy a high level of exposure during the four days.

Lely Astronaut robotic milking system

Eight rural bachelors set for battle EIGHT FINALISTS have been named for the Fiel-

days Rural Bachelor of the Year contest. This year, two Australian and six Kiwi bachelors will battle to win the Golden Gumboot. The finalists are Brandon Sayliss (Taupo), Gus Thomas (Rakaia), Kaleb Foote (Tuakau), Oscar Smits (Reporoa), Paul Olsen (Manawatu), Peter Damen (Kindred, Australia), Jamie Havill (Ahaura) and Rob Ewing (Cape Paterson, Australia). During a whirlwind week they will leave their comfort zone and challenge themselves, says Lee Picken, Fieldays head of events. “We have a lot of talent in the young agri sector in New Zealand and Australia and this is an opportunity to showcase the future of the industry. These guys are passionate self-starters looking to upskill and progress their careers in an industry they’re extremely proud of.” The competition starts with a road trip on June 13-14 from Auckland to Fieldays, completing challenges by NZ Young Farmers and Rural Women NZ and spending the night on a farm with a difference at Lavalla Estate in rural Tuakau. Arriving at Fieldays, the Bachelors will have their skills, attitude and all-round charisma tested in competitive challenges such as speed fencing, blind dating, log splitting and building. A few fun twists will test the character of these rural men. From Wednesday to Friday there will be four challenges a day, and a winner announced at the official prize giving on the Village Green on Saturday at 12pm. Two titles are in contest: Rural Bachelor of the Year and People’s Choice, and a prize pool of $20,000.

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*Terms and Conditions apply and are available from your local Lely CenterTM. Prize does not include installation or shipping.

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innovators in agriculture

DAIRY NEWS MAY 31, 2016

36 // NZ NATIONAL FIELDAYS

Fresh take on our history HISTORY WILL come alive in a fresh way at the Fieldays Ag Heritage Village. Visitors to the village can travel back in time on an interactive scavenger hunt and see views of farming life as it was for the pioneering families of New Zealand. Educating youth about their agricultural heritage is the focus of the village, emphasised by the recently refurbished barn; heritage co-ordinator Alan Reilly is putting together pieces of the past for younger generations. “The land that we live, work and farm

on holds the stories of our history, and these shape who we are today, whether we realise it or not. Opening our heritage buildings during Fieldays will help us to share some of these stories with our community,” says Reilly. He wants to tell the stories in a way that will educate and encourage children to look closer at everyday items and think more about their history. “All these stories will soon be lost, which is why it’s important to share and record them.

A volunteer driving visitors around with a vintage Massey Ferguson tractor.

“During Fieldays we’ll have handson challenges, puzzles and ag heritage activities in all our heritage buildings.” This year the vintage tractor parade has had a revamp and will be bigger and louder than ever. Tractors from the Waikato Village Tractor and Machinery Club will park

Vintage tractors on display at the Fieldays.

around the heritage village lake and complete a vintage tractor parade twice daily at 10am and 2pm. Signalling the Fieldays society’s commitment to the heritage village, the barn got a facelift earlier this year and now houses a collection of items that illuminate Waikato’s rural past.

The next village project will be to create a space where people can record and share their own stories about the artefacts on display, eventually integrating these stories into the education experiences on offer. For more info, Waikato Village Tractor and Machinery Club tel. 07 883 1103.

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DAIRY NEWS MAY 31, 2016

38 // NZ NATIONAL FIELDAYS Cropland spray equipment will now be distributed by Norwood Farm Machinery.

European sprayer secures marketing deal NORWOOD FARM

Machinery Centre has been appointed the exclusive distributor of Croplands spray equipment in New Zealand. Norwoods will handle sales, service and parts

support, while Croplands provides extended technical and sprayerspecific expertise. Aimed at developing the higher-end market in agriculture, where emerging technologies are bringing benefits

Meet the team with the knowledge in forage at the New Zealand Agricultural Fieldays.

in application, product usage and ultimately cost reduction, the partnership will cover all Croplands products from knapsack to self-propelled machines; but the deal will exclude some viticulture-specific machines subject to a separate agreement. Sales and service training are now complete and plans are in place to visit supplier factories in Europe later in the year to investigate customisation of large mounted and trailed machines specifically for the NZ market. Greg Small, area sales

manager for Croplands, comments, “Norwood and Croplands share a common cultural identity and have similar visions, which starts with openness, which has already seen us share details of the 35+ development projects we are currently working on. “The agreement will give Croplands a level of consistency across the country and will allow us to offer higher levels of service and an increased product range.” www.norwood.co.nz or www.croplands.co.nz

Nozzle cleans up the bottom line MARK DANIEL markd@ruralnews.co.nz

WITH WATER a finite resource under the spotlight,

When it comes to forage equipment, don’t buy blind! The benefits of having gear that is compatible with your farming operation, are endless. With over 50 years experience selling equipment to New Zealand farmers the team at Webbline understand agricultural harvesting more than most. Modern farming methods demand the most modern technology available to ensure the job gets done under pressure. To get the right equipment for your operation, ‘forage knowledge’ is key. Webbline’s commitment is to advise and supply the right equipment, backed up by highly trained technicians with premium parts and service.

savings are always welcome. The new Hydrofan wash-down hose nozzle newly released by Numedic has been tested on DairyNZ research farms, and found able to save at least 1 million L of water annually on a typical 400 cow farm. Water emerges from the nozzle as a fan jet, and the rotary union in the nozzle body allows the user to clean the cowshed yard in a sweeping motion, saving water and cost. Manufactured from high grade stainless steel, each nozzle is supplied with a swivel hose-tail in 32mm or 38mm sizes. Hefty power savings are also possible, says Numedic: less water needs pumping and effluent volumes are lower after wash-down.

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DAIRY NEWS MAY 31, 2016

NZ NATIONAL FIELDAYS // 39

GEA floats cloud data MARK DANIEL markd@ruralnews.co.nz

DATACORE, A cloud

software programme, is GEA’s innovation showpiece for launch at Fieldays, which expands the iCore milking point management system to allow farmers to remotely control the system and in due course access herd management data. GEA dairy farming R&D team leader Mark Jones explains, “we want farmers to be able to record information on a cow when they notice it in the paddock, have this alerted when entering the shed and automatically have it drafted all via iCore”. Farmers will also be able to access milking information such as flow, yield, conductivity and milk analysis with all the information stored in one central place, via a smartphone/ tablet web browser device that will offer a better visual display of the data than that available in bail.

Feeding using the KISS system GEA’s ICore milking point management system.

Limited internet access is no barrier to using the system as it is platform independent and can run on any device. DataCore would simply store the data until it has internet access to upload to the cloud, while continually using safeguards to protect data and maintain functionality for farmers in all situations. While the initial release will have basic functionality, i.e. control over iCore, future upgrades, such as integration

with herd management systems, will mean a simple upgrade to the existing software. In the near future the system will integrate with GEA’s iDentity herd management software. There are plans to enable farmers to pass on information to third party herd management systems LIC Protrac, DairyPlan C21 and Farm 360. @dairy_news facebook.com/dairynews

WHILE NEW Zealand is the land of the bale feeder that cleverly unrolls a bale in the paddock, much feed is wasted when stock trample it on the ground. So there’s a place for simple, low-tech stock feeders, as made by QC Engineering, Napier, and sold under the AgBrand and Red Barns brands. The company offers a broad range of styles from basic 1.6m diameter units, with 12 positions and capable of feeding 30 animals, to larger units of heavier construction and wider access points, that can accommodate bull beef animals over 24 months of age. A range of rectangular and oval feeders will suit larger mobs, can hold up to three large round bales, and suit feeding out hay or silage as supplements for animals feeding on break

crops such as fodder beet or kale. The company also manufactures modular feed fences useful for constructing feed pads, and accessories such as liners for round units, allowing meal, pellets or nuts to be fed efficiently, and covers for feeders used in inclement conditions. All construction uses heavy gauge steel for the framing, and quality galvanising for a long, trouble-free life. Units are easily broken down for movement or storage and use a bolt or removable pin system to fix panels together. The modular design can be extended to meet changing situations or number changes, and is easily customisable around farm buildings and feed-pads. – Mark Daniel

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DAIRY NEWS MAY 31, 2016

42 // NZ NATIONAL FIELDAYS

Free fencing tips FOR A third year, Taragate offers

visitors its Fieldays fencing demonstrations on an expanded site. The idea is free and interactive fencing advice for all, visitors being welcomed onto the site from 10am until 3.30pm each day. Live and interactive demonstrations are run continuously by three top professional fencers and fencing instructors.

Taragate will demonstrate fencing everyday for visitors.

Visitors can get up close to the fence line and demonstrator in a relaxed interactive environment that promotes watching and learning. “A solution to every fencing requirement will be demonstrated,” the company says. Fences will be seen under construction using tractor driven postdrivers from Fairbrother

Industries and Fence Pro, and fencing materials suppliers Farmlands, Eurocorp and Permapine will take part. Visitors can enter a draw to win a Husqvarna chainsaw (value $800) by answering three simple fencing questions. @dairy_news facebook.com/dairynews

Cattleyards can be dangerous places on farm.

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WHY A DCS MILK COOLING SYSTEM IS THE BEST INVESTMENT IN YOUR FARM European design and quality - Over 50 years experience in developing milk cooling tanks and one of Europe’s leading Dairy Cooling Systems producers for the needs of farmers around the world – from Mexico to Japan, from Russia to South Africa, Australia and New Zealand.

Horizontal Milk Cooling Tanks with Iced Water Cooling – 50% more effective in cooling the milk compared to standard direct expansion systems without any risk of freezing the milk due to the water temperature of +0.5 > 1.0degC.

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Energy Saving with Packo Ice Builders (PIB’s) – thanks to the ice energy store build-up during night time hours, a smaller refrigeration unit can be installed plus the potential savings of off-peak power rates. Water Saving with PIB’s – bore water pre-cooling is not necessary with the correctly sized PIB. This is ideal for drought prone regions or where water supplies are restricted.

Be careful in the yards MARK DANIEL markd@ruralnews.co.nz

‘FARMER FIGHTING for his life after being gored

by a cattle beast’ is not the news anyone wants to hear. Cattleyards are dangerous places onfarm, ranking second on ACC’s list. Yarding maker Te Pari Products says it has come across hundreds of yards not entirely safe, and with the potential to allow serious injury or even death to farmers. So it set out to do something to make operators aware and able to identify problems like pinch points, protrusions or poorly locking gates. The company has developed a website to help famers assess the safety of their yards via an easy-todo online questionnaire; this asks 15 thought provoking questions and helps the user identify dangerous areas in their yards. Upon completion the company emails the respondent a single page report prioritising issues that need addressing. The site is free to use and contains useful links to health and safety information provided by the government and other industry providers. Take the test now at www.yardsafe.co.nz

Improved Milk quality through Snap Chilling = potentially a higher return adding PROFITS to the farm.

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DAIRY NEWS MAY 31, 2016

NZ NATIONAL FIELDAYS // 43

Granules dissolve in cold water on way to paddocks ammonia, or leaching beyond the plant’s root markd@ruralnews.co.nz zone or escaping to atmosphere in the form of nitrous oxide, would TECHNOLOGY be cut drastically because DEVELOPED in the urea would not enter Dannevirke is becoming the soil but be directly disruptive in pasture absorbed by plant leaves. grazing markets beyond Metalform developed New Zealand. Tow and Fert, a fertiliser Tow and Fert, designed applicator, to quickly and manufactured by dissolve normal Metalform, has the Metalform developed granular urea in ability to either cold water on the reduce fertiliser Tow and Fert, a way to the paddock, input costs without fertiliser applicator, thereby turning impacting pasture urea into a dissolved yields, or maintain to quickly dissolve normal granular urea foliar spray quickly, fertiliser inputs conveniently, and improve dry in cold water. cheaply and in matter and protein an environmentally ha six times a year would production. responsible way. equate to about 72 tonne Norco Rural, a dairy With specific agitation of urea, costing $43,000. co-op in NSW, is the But if it were dissolved and patents and boom latest company to prove recirculation technology, applied as a foliar spray, the efficiency of nitrogen the Tow and Fert dissolves the cost would be around when applied in a foliar soluble products and can $18,000, saving $25,000 form. keep insoluble products annually. During trials it applied From an environmental like fine lime or RPR in nitrogen at only 42% of the suspension; this allows an viewpoint, N escaping typical rate – 21kg/ha of operator to make one-pass into the environment as foliar-applied urea versus MARK DANIEL

50kg/ha of granular urea. Measurements were taken over nine grazing cycles; the DM/ha yield during seven of those cycles showed an increase in yield from the lower application of nitrogen. Profitwise, on a 150ha farm milking 400 cows, a typical application of granular urea at 80kg/

Metalform’s Tow and Fert fertiliser applicator.

applications of, say, weed spray, humates, gibberellic acid and even small seeds.

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DAIRY NEWS MAY 31, 2016

44 // NZ NATIONAL FIELDAYS Wairarapa farmer Phillip Engel says rinsing cups and plastic liners have helped keep mastitis at bay.

Rinsing cups, plastic liners bring reprieve from mastitis GARETH GILLATT

A WAIRARAPA dairy

farmer has virtually eliminated clinical mastitis in his herd by rinsing cups between cuppings and turning to plastic liners. Phillip Engel milks 400

cows through a 50-bail rotary shed on his family farm south of Carterton. Engel says he has lowered his herd’s somatic cell count scores from the previous season and slashed the number of cows in the farm’s hospital mob from 12 to one or two.

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The breakthrough came after testing revealed that all the clinical cases on his farm had been caused by mastitis in and around the teat area. “We ran dozen of tests on clinical cases in the herd and in every case the reason for the mastitis infection was a teat infection caused by cow effluent getting into the teat canal.” While Engel and staff had always kept a clean shed he says they lifted their game further by beginning a strict regime of rinsing each cup with fresh water before each cow. While milkings now take longer, Engel says improved milk quality and fewer cases of clinical mastitis more than make up for it. “It adds 15-20 minutes to milking but you don’t have the issues of the drug mob coming after us.” While rinsing cups before applying isn’t new, Engel believes it’s important to get back to basics. “I believe the New Zealand dairy sector has lost a lot of skills.” DairyFlo milk liners are now used on the milking platform. Made from a soft, smooth plastic, the liners are non-porous, reducing the risk of contaminants getting into the milk and lasting longer. Inflations withstand at least 5000 milkings before needing replacement, which Engel says is already paying off. “They’ve already completed well over 2500 milkings and still have a good level of elasticity.” Engel noticed that some milk was always left over in cups after washing

Liners, made from smooth plastic, reduce the risk of contaminants getting into milk.

due to their design. While the plastic liners were an improvement, this problem still existed. “There was always residue left on the cups which could result in cows with mastitis infecting other animals in the herd,” he says. “One cow can infect eight other animals.” Engel suggested a concave design to help drain water freely. Rubber liner manufacturers weren’t open to adjusting their moulds, but DairyFlo was. He installed two of the new cups recently and says results were impressive: the cups show residue milk was reduced. Milking with the new cups takes a little getting used to: the somewhat rigid nature of the cups makes it important for operators to change the way they hold the cluster when cupping up. “The big difference is during washdown, as jetters need to align with the inflations correctly to create a vacuum.” Ultimately Engel says the new inflations and milking method have allowed him to adjust the way the business runs, also using the DairyFlo milk and air tubing which will eliminate rubber from the platform to the cow. “This product will outlast rubber and maintain a bug free environment inside and out.” The other bonus feature: “This product is totally recyclable; liners and tubing can be made into anti-fatigue matting,” explains Engel. “The numbers thing dawned on me,” he said. “I believe I can do a whole lot better with a lot less waste.”

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DAIRY NEWS MAY 31, 2016

46 // NZ NATIONAL FIELDAYS

Where there’s a chill, there’s a way MARK DANIEL markd@ruralnews.co.nz

Steve Corkill (left) and Brad Sulzberger.

THE SIMPLEST ideas are often the best, and so is the case with the CSL Chillboost, with poten-

tial to save dairy farmers money as they strive to meet the new milk cooling rules. Milk in the vat must now be cooled to 10 degrees C or below within four hours of the start

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of milking, or down to 6 degrees C or below within six hours, and within two hours of completion of milking. The milk must be held at 6 degrees C or below until collection or the start of the next milking, and must not exceed 10 degrees C during subsequent milkings. The Chillboost device designed by Brad Sulzberger, a dairy farmer from Urenui, Taranaki, is aimed at this last point -- the 10 degree C threshold when adding fresh milk to the vat. Typically milk already held in the vat will be between 4 and 6 degrees C at the start of milking, with 4 degrees C being the switch-off point, and 6 degrees C being the cut-in point for the chiller system. In effect the device is a waterproof timer, encased in a module, which uses a shunt to connect to a thermo-couple that can be set to activate the chiller system around 30 minutes before the start of milking; this ‘tricks’ the chiller unit into registering the milk as being warmer than it really is. This allows the chiller to bring the contents of the

vat down to 4 degrees C or below prior to milking, and goes on to repeat this cycle every 30 minutes, and as milk is added it keeps the ‘blend’ temperature lower than normal. In practice this means the chiller will never wait to see the cut-in temperature of 6 degrees C, and will have the overall effect of reducing the blend temperature by around 2 degrees C, which for a large number of dairy farmers will allow them to stay under the 10 degree C blend temperature, as required under the new rules. The unit can be retrofitted to existing chiller systems and offers the advantage of using the milk already in the vat as a cold storage ‘bank’ to help lower the blend temperature as it enters the vat. It is easily adjustable to cater for different systems or regimes and lends itself well to two-day pick up cycles. The unit also enhances the existing chiller performance by maximising its output, delaying the need for an upgrade. Price: around $200+GST. www.corkillsystems. co.nz

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IRELAND, AN exporter of many well-known machinery brands, is home to Abbey Machinery, in Tipperary. This company makes muck and slurry handlers, diet feeders and grassland management gear. It dates back around 110 years. The present business was formed in 1947. In early May the company opened a new, purpose built factory, costing Euro 10 million, on a 12ha site. The 10,000 sq.m plant houses new production lines and manufacturing areas using laser and plasma cutting, semi-automated robotic welding stations, sandblasting and painting plant. The company expects to be well placed for an upturn in the market. Abbey Machinery is distributed in New Zealand by Farmguard Equipment. www.farmguard.com.au

DAIRY NEWS MAY 31, 2016

NZ NATIONAL FIELDAYS // 47

Cool milk faster and save on power costs PENDING REGULATIONS on cooling milk

are prompting many farmers to look at upgrading or replacing their chiller systems. ACR Agri Ltd, Hawera, whose equipment can lift the performance of dairy refrigeration units, says some farmers will need to upgrade their chillers or risk not having their milk collected. The company offers milk chiller systems that cool milk efficiently and save up to 80% of the power usually required for this task. “These are based on cooling the milk faster and saving on power,” the company says. Greater chiller efficiency is obtained with ACR’s DairyChill Enersol Boost system which sends

THREE PRODUCTS ON OFFER ■■

The DairyChill Enersol Boost system which ensures that hot water enters the cylinders at 85 degrees, for new or existing sheds.

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OptiChill, which ensures that milk enters the vat at 8 degrees C in one pass. This is claimed to save 50% on power over the standard chiller unit and electric water heating.

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CoolJect Plus+ is a system which involves replacing existing thermal expansion valves with valves which are electronically controlled. The chiller fans are also replaced with long-life electronic fans.

water at 85 degrees C to the vat. The system can be fitted to new or existing sheds and will increase the lifespan of the existing chiller unit, the firm says. Under the new specifications raw milk must:

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Be cooled to 6 degrees C within two hours of the end of milking or within six hours of starting milking Be cooled to 10 degrees C or below within four hours of starting milk-

New regulations on cooling milk means farmers need to upgrade their chillers.

ing Be held at or below 6 degrees C until collection or the next milking ■■ Not exceed 10 degrees C during subsequent milking. According to MPI, milk collected from a farm must be cooled according to new rules or it will likely not be collected; it

costs.

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would then have to be dumped. Research shows that cooling consumes about 30% of the total energy in operating a dairy. Meeting the new specification may markedly reduce energy

South Taranaki farmer Murray Phillips says the DairyChill unit has worked on his farm. “The system works, easily meeting Fonterra’s milk temperature criteria. It has changed my struggling milk chilling unit to a well performing unit;

there’s a cost recovery and a finite payback period. “This isn’t a case of ‘going broke to save money’; it really works the chiller unit to its maximum ability.” Taranaki farm manager Peter Robinson says the Coolject System cools the milk a lot faster. “Our milk chiller unit works a lot better.”

Visit RX Plastics at Mystery Creek Fieldays Site D83/D85

DAIRY NEWS MAY 31, 2016

48 // NZ NATIONAL FIELDAYS

Final send-off for funky cruiser LOVE IT or hate it, the Toyota FJ

Cruiser is different: it’s been called weird, wacky, funky and retro and hasn’t ever been a shrinking violet. Now it’s over. Toyota New Zealand says the FJ Cruiser, an SUV model that’s been in its New Zealand line-up since 2010, will end production in August. The retro-styled FJ Cruiser was launched in homage to the pioneering FJ40 that lay the foundations for the now world-renowned Land Cruiser. “The FJ Cruiser was a special model introduced as a testament to the original FJ40 and to ride on its legendary namesake,” says Spencer Morris, Toyota New Zealand’s general manager of product. A memorable FJ Cruiser moment was the 16-day Top to Bottom chal-

Free kits help farmers with health and safety MARK DANIEL markd@ruralnews.co.nz

FARMERS INTERESTED in learning to

lenge that saw Kiwis follow television presenter and Toyota ambassador Marc Ellis on an epic off-road journey from Cape Reinga to Bluff meeting locals and national legends along the way. This helped

celebrate the 60th anniversary of the Land Cruiser and its high regard in NZ. A total 299 units have been sold to date with firm dealer orders available until production ends.

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reduce the risk of accidents with machinery are encouraged to visit the WorkSafe team at Mystery Creek. Many accidents with machinery can be simply avoided, says Al McCone, WorkSafe’s programme manager for agriculture. “WorkSafe will provide free kits designed to help farmers [manage] risks onfarm, including machinery-related hazards. “Machinery accidents can be down to operator error, misjudgement, inexperience or inadequate maintenance.” Unguarded machinery parts present a serious risk of injury. “These include belts and pulleys on vacuum pumps, milk pumps and auger motors, generator flywheels and gear wheels. Take care around shafts and spindles

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on vacuum pumps and milk pumps, and also on the tractor power take-off when you’re using a tractor as a power source. “Dangerous machine parts include drawing-in points or nip points: these occur when a belt contacts a pulley. They grab at fingers, clothing or hair and draw the operator in, causing serious injuries.” Impact and crushing areas can also be dangerous, he says. “These points crush limbs or people, like rotary platform rollers (where people can be caught between fixed rails) and the moving stalls on rotary, hydraulic

or pneumatic gates (like cow entrances and exits). “Easily seen and used emergency stop equipment is vital in large machinery, and good design in machines like log-splitters will mean the operator is well away from the impact points. “Problems can be there even before a machine gets through a farm gate. Manufacturers and retailers need to be aware of the safety and usability of the product they are designing or selling.” Farmer and former All Black Richard Loe will join the WorkSafe team at Mystery Creek.

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DAIRY NEWS MAY 31, 2016

NZ NATIONAL FIELDAYS // 49

Super smart ‘dashboard’ to monitor effluent MARK DANIEL markd@ruralnews.co.nz

TWO RESPECTED

suppliers to the dairy industry have united in a joint approach to ‘super smart’ effluent monitoring and control. Tag I.T., with its Halo brand, and Reid & Harrison, with the Yardmaster brand, are setting out to supply an effluent management solution tailormade for customer needs. Reid & Harrison in December 2015 ran a workshop with eight customers, intending to clarify the key issues dairy farmers face in effluent management. These were cited as removing the guesswork from effective effluent control; the

amount of management time soaked up by compliance; and the need for portable, real-time oversight of effluent systems. Reid & Harrison recognised Tag I.T. as competent in these areas with its Halo range that monitors effluent, water, milk and weather via one ‘dashboard’ to cover most of a farm’s needs on one display. The company knew that ‘cloud’ computing allowed portable visibility and cost effective control of technology. But something was missing: enhanced control of equipment – the ability to use the IT based technology to run a pump at different flows and duties. The Halo solution allows functions to be

controlled from a phone, tablet, computer or the onsite control unit itself, while monitoring and recording what is happening at all times. Says Keith Cooke, chief executive of Reid & Harrison, “We are excited that

Halo range dashboard cover most of a farm’s needs on one display.

we have a customer driven solution that gives control back to the person who needs it most -- the farm owner/manager. “Tag I.T. has a similar culture to our company making the joint project a real collaboration.”

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NH T7 series gets revamp THE NH T7 series has been restyled for an aggressive new look. The hood now has extended blue side panels giving more protection from dirt and debris, and the roof has adjustable LED working lights that enable operators to work into the dark comfortably, safely and productively. The T7 series has a 6-cylinder engine that meets Tier 4B emissions standards without the need for exhaust gas recirculation or a diesel particulate filter; and its after-treatment system maintains combustion efficiency while reducing emissions. This has allowed New Holland to increase the upper power levels of both wheelbase versions of the T7 while further improving fuel efficiency. A new headland turn sequencer (HTS II), controlled through the maker’s standard IntelliView IV touchscreen, allows complex headland turns by recording a turn ‘live’ or creating one from a menu. Such tasks as selecting the target speed of the Auto Command transmission and switching to an implement camera view are programmable and editable, under the control of a single button. With the new T7 comes Isobus Class III architecture which allows a compatible implement, i.e. the New Holland BigBaler, to control the tractor. The updated eight-model range includes a new standard wheelbase model with peak power of 225hp, delivering more power and offering productivityboosting features.

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DAIRY NEWS MAY 31, 2016

50 // NZ NATIONAL FIELDAYS

Gallagher innovation on display Flashmate electronic heat detector.

MARK DANIEL markd@ruralnews.co.nz

S20 portable solar energiser.

interested in the simple, multi-purpose applications for the high visibility Sighter, capable of use on bungy cord or steel wire and to highlight specific hazards onfarm. “Their ability to be fixed in a number of ways adds to their adaptability and suitability as low cost hazard identifiers,” Jones says. Dairy farmers may also see the company’s recently launched Flashmate electronic heat detector, claimed a game-changer in lifting herd mating performance. Its simple flashing light warning system identifies cows on heat, helping farmers improve cow submis-

sion rates by detecting cows that may otherwise be missed; farmers are also reporting lifts in their six-week in calf rate through more accurate heat detection. The site’s equine fencing display will show Gallagher’s long-developed sys-

“Designed by a Farmer for Farmers”

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PHONE 0800 4 AGBITS | 0800 4 242 487 WEBSITE www.agbits.co.nz

tems for containing valuable horses. And visitors may be able to catch up with celebrity siblings. As NAIT compliance becomes a ‘must do’, Gallagher staff will help with specific software and hardware support for stock ID and weighing systems.

“This is a great chance for farmers to have a chat about the equipment, maybe find out more about something they already have, or are interested in investing in, without the usual distractions and chores… at home on the farm,” says Jones.

Calf rearing easier with mobile feeder THE ANNUAL toil of calf rearing just got easier with the launch of a premium mobile calf feeder range designed to save time, money and effort. The new 2020 MG and OT mobile feeder range from Stallion Plastics makes the back-bending, timeconsuming work of calf rearing easier, and gives a break to the time-challenged farming women heavily involved in rearing calves and cleaning feeding equipment. The company says key points identified by farmers during discussions were increased stability, strength, greater tank capacity, accessibility and easier cleaning.

The range has eight different models. Key points include 500 and 1000L tanks mounted low in a heavy duty galvanised steel frame to reduce the centre of gravity and increase stability. The units have a new outer plastic coating to repel dirt and make cleaning easier a ‘click and clean’ washing system with easily turned Hansen taps will be welcomed by cold, tired hands. For easy operation the feeders have better, lower inspection visibility and re-positioned side access; larger tank lids use a new three-way locking system which makes access easier and high wind less of a problem. www.stallion.co.nz

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THIS YEAR’S Fieldays theme ‘Collaborate to accelerate innovation’ is a near-perfect fit with the vision of New Zealand’s most enduring and iconic agri-tech company Gallagher. The complete range of products resulting from Gallagher’s innovative, collaborative approach to development will be on display at Mystery Creek. National sales manager Darrell Jones says all the equipment has come from listening to farmers and developing products that do the job better, safer and simpler. It will include breakthrough fencing technology such as the S20 portable solar energiser, the high visibility Sighter and the dual purpose portable handle. Jones says, “the S20 energiser has all the key features of the popular S10 model, but with twice the power. It’s ideal for farmers wanting to push their strip grazing that little bit further.” With health and safety requirements tightening, farmers will also be

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DAIRY NEWS MAY 31, 2016

52 // ANIMAL HEALTH

Farmers, vets gang up on scours PHIL STEWART

NEONATAL SCOURS

can badly affect dairy calves and make it difficult for herd owners to raise enough healthy replacements. Guy Oakley and Sarah Procter, Coastal Vets, Taranaki, worked with Pauline Calvert and Robyn Hirst of MSD Animal Health to help a farming couple identify and manage the risks involved in problems with scours caused by rotavirus. An outbreak of neo-

natal calf scours can be challenging and labour intensive, and requires a rapid response from the farmer and vet. In a severe outbreak, calves’ response to treatment can be poor and many die; those that recover may have lower productivity because of permanent damage to their gut lining. Brendan and Megan Forsyth run a familyowned milking herd of 270 crossbred cows on 80ha at Awatuna, Taranaki. They also have a 26ha runoff nearby. For several years scours have recurred spo-

radically among their calves, consistently caused by rotavirus. With their vet they elected in 2014 to begin vaccinating. Before calving, the milking herd -- not including the heifers -- were vaccinated with Rotavec Corona. (It is not unusual for heifers to miss rotavirus vaccination, as they are often being grazed away from the farm at the time; and they are naturally mated, their calves not being required as replacements.) Vaccination boosts the dam’s lactogenic immunity. This

Guy Oakley of Coastal Vets, Taranaki (centre) with farmers Megan and Brendan Forsyth; a successful collaboration helped them overcome rotavirus scours.

and good colostrum management and neonatal care is critical to managing this common pathogen. Rotavirus did not appear during the first four–six weeks of calving in 2014, but cases then started to appear and became particularly severe. About ten calves died and the Forsyths struggled to raise enough replacements that season.

Farmers Trust One dose, job done!

MSD Animal Health and Coastal Vets, with the Forsyths, investigated the cause of the outbreak, which occurred despite vaccination. They concluded that overall farm and herd management were good, the owner– operator enterprise being managed efficiently by a husband-and-wife team. Faecal screens from severely scouring calves confirmed rotavirus as the cause. Despite evidence confirming adequate passive transfer (based on GGT concentrations in tested calves), the outbreak was severe and affected many groups of calves. During the dry period, the farmers, vets and the MSD Animal Health technical team reviewed all the farm practices and facilities that could affect the prevalence of neonatal diarrhoea, looking to make realistic onfarm changes in 2015. They saw several possibilities for improvement: 1. Calf pens and group management Simple, practical changes to the calf pens were recommended. These included use of solid partitions and an all in/all out policy, with calves remaining in set groups of similar age during their first three weeks of life. Once old enough, the calves from

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Hygiene in calf pens must be maintained at all times.

each pen were shifted across the road to a larger facility for the remainder of their rearing. 2. Hygiene Bedding in the calf pens was replaced with clean wood shavings, a disinfection regime was established for the upcoming season and the disinfectant used was changed to a broad-spectrum product with antiviral properties. 3. Colostrum Colostrum storage and utilisation were reviewed. First-milking colostrum was kept separate and used only for new-born calves for their first two feeds. The transitional milk from milkings twoeight was used for subsequent feeding of the calves. Tubing all neonates to ensure they got at least one colostrum feed, while still able to absorb crucial antibodies, became standard practice. 4. Calving pickups Ideally pickups are done twice daily, but with no extra help over the busy calving period it was impossible on this farm. This placed calves at risk of not receiving the highvalue colostrum from vaccinated dams shortly after birth. Once-a-day pick up remained for most calves during peak calving – but tubing calves with colostrum (taken from vaccinated cows’

first milking) in the paddock was adopted when pickup was not possible within 12 hours of calving. This provided the extra security that new-born calves could maximise their absorption of protective colostral antibodies shortly after birth. Stored transition milk continued to be fed to calves in their first three weeks of life to maximise the protective properties of the antibodies. 5. Vaccination protocols Split vaccination to cover the entire nine-week calving period was recommended to continue. The whole herd – including heifers, kept on the runoff – were vaccinated in 2015 with Rotavec Corona. This was to ensure that as cows came into the milking herd all colostrum collected and fed to calves contained boosted antibody concentrations against the neonatal scour pathogens. This reduced the likelihood that poorly protected calves entering the calf pens would increase the risk of disease challenge to the other calves. Following the interventions described above, the Forsyths had a much better calving season in 2015. Only two cases of calf scours were found, and neither was caused by rotavirus.

DAIRY NEWS MAY 31, 2016

ANIMAL HEALTH // 53

Keeping Johne’s at bay Be vigilant when buying new stock to guard against introducing Johne’s disease to your herd. “The tests are useful in notifying high risk animals and ‘super shedders’ – these animals are high transmitters,” Corbett says. “The super shedders

(cows with advanced Johne’s disease) will excrete copious amounts of the bacteria into the environment; if they are pregnant, chances are their offspring will also be born with Johne’s disease, thus continuing the cycle. “Removing them reduces the transmission to other animals. The

objective of the testing and management regime is to break the transmission cycle and infection of young stock. “Successful management of Johne’s disease won’t be an overnight process, but vigilance with the principles in the management guide and appropriate testing will work.”

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most susceptible to infection. With other management interventions, regular testing and culling can protect replacement heifers against Johne’s disease and immediately reduce losses due to clinical Johne’s disease among an adult herd. If farmers screen and cull in autumn before calving they can minimise the number of cows dying from Johne’s disease during and after calving -a big benefit. It removes cows that will become clinical before they do so, and it protects the calves being born. The JDRC developed a guide for farmers containing the latest and best advice on managing the disease. It is available from DairyNZ’s website and has been distributed to many vets. “Using the measures in the guide in conjunction with testing will help farmers reduce the impact of Johne’s disease in their herd and bring it under control,” Corbett says. The guide tells how to recognise the disease, what causes it, how it is transmitted, which animals are most at risk and what to do about it. It includes the following: ■■ Develop a practical long-term Johne’s disease risk management plan with the help of your vet ■■ Test the herd and cull high risk cows and heavy shedders before calving. This will reduce exposure of calves to Johne’s bacteria at birth. Note that the stress of calving and milking will often push cows with advanced infection ‘over the edge’ to become clinically sick and die. Johne’s testing herdtest milk sampling is a simple and efficient option to screen the milking herd ■■ Limit calves’ exposure to faecal matter, including keeping them out of effluent paddocks ■■ Limit calves’ exposure to adult cows because these pass on the disease (e.g. send your replacement heifers to a rearing unit with no adult cows or other adult ruminants as soon as possible after weaning)

I P IM AP or OW N

HELP IS at hand for dairy farmers facing Johne’s disease in their cattle, says LIC. The co-op offers them help in managing the disease, including diagnostic testing and a comprehensive Johne’s disease management guide developed by experts. “We know Johne’s disease can be a stressful and frustrating challenge for many dairy farmers,” says LIC general manager biological systems Geoff Corbett. “We want farmers to know there are tools available to help them manage the disease in their stock.” While there is no cure for Johne’s disease in cattle, testing and managing it can help reduce cow losses and the longer-term health of a herd, Corbett says. “We have had a lot of success in New Zealand with this approach. LIC has screened at least 100,000 animals a year with its Johne’s disease diagnostic testing.... This supports farmers with a Johne’s disease problem to identify and remove problem cows with advancing infection that are shedding the bacteria, before they develop clinical disease.” In recent years a joint venture including LIC and DairyNZ -- the Johne’s Disease Research Consortium (JDRC) -- has developed disease management tools for farmers. The consortium has funded a study by the animal health laboratory at LIC, and research into approaching Johne’s disease from a genomics standpoint. This has included creating a testing regime -- available now to farmers -- which uses milk samples from the herd testing process run by LIC. “This testing is popular with farmers, with the ease of being able to use the herd test milk sample. They need only schedule Johne’s disease testing for the same time as herd testing and the LIC diagnostics laboratory does the rest. Vets follow up with results and help with ongoing management plans for the farmer,” Corbett says. While clinical Johne’s disease mostly affects older animals, it is calves and young stock that are

Geoff Corbett, LIC.

DAIRY NEWS MAY 31, 2016

54 // ANIMAL HEALTH

Low cell count should remain high priority PHIL FLEMING

COMMONLY I hear farmers say, “Why bother with low cell count when there are no financial incentives from my dairy

company to maintain a low bulk somatic cell count?” This may be so and you may not be getting grades, but there are still many financial advantages to maintaining a low cell

count. Apart from the obvious advantage of less veterinary care and antibiotics for uninfected cows, infected quarters produce less milk. DairyNZ’s farm fact

sheet, 3-10 Somatic Cell Counts, says that cows with high somatic cell counts usually produce less milk than those with lower counts (up to 8kgMS/lactation for every increase of 250,000 cells/

Phil Fleming, LIC

ml in the range 100,000600,000). Most mastitis prob-

lems are either calving related environmental problems, characterised by a high number of clinical cases in the spring, and/or contagion which usually results in a rising cell count later in the season. The contagious form of bacteria is Staphylococcus aureus which is easily transmitted from cow to cow via milkers’ hands and liners, so as the season progresses the number of

this essential information and is an easy and accurate way to identify cows for dry cow treatment and possible culls. The drying-off process requires good management in order to mitigate mastitis issues arising the following season. If the herd is producing more than 10L/cow/day at drying-off, feed supply will need to be actively managed to help the process. This can be a balanc-

There are many financial advantages of maintaining a low cell count. infected cows goes up. Some good tips for keeping this form of bacteria at bay are: ■■ Teat spray every teat, every day and every milking ■■ Wear milking gloves ■■ Avoid hosing down around cows when cups are off ■■ Where possible, milk high cell-count cows at the end of the milking. Keeping a low cell count in the autumn can be difficult because as volume drops cells become less diluted and cell count rises. There is no benefit to treating high cell-count cows in late lactation; they should be dried-off early and treated with dry cow therapy. Some chronically infected cows cannot be cured. These are cows which have had three or more cases of clinical mastitis during the season, and cows which have been high over consecutive seasons despite using dry cow therapy. They should be considered as culls and removed from the herd. Herd testing will provide

ing act as too much feed will make it difficult to dry off and too much restriction can result in stress, downer cows and weight loss. Low protein feeds such as maize, hay or straw can be put to good use to reduce milk volume. Alternatively, reducing feed intake to 66% of the milking diet for around three days will produce the same effect. Metabolic problems at drying-off can be mitigated by provision of magnesium and calcium. It is important not to restrict cows’ water intake over this period. Strategies to combat mastitis in the herd are a complex issue. Every situation is slightly different and on any given farm many factors will affect the outcomes. Consult annually with your vet: explain your particular situation and help choose which treatment or dry cow therapy approach will suit your farming practice. • Phil Fleming is FarmWise consultant.