All Black’s lock fronts campaign. PAGE 9 RED DEVIL
Thai farm invasion PAGE 30
LESS IS MORE
Studying feed habits PAGE 24
AUGUST 16, 2016 ISSUE 362 // www.dairynews.co.nz
ANGEL DIRECTORS OFFER HOPE “Some think it’s about handing over control. It’s not, effective governance is about gaining control,” – Grant Coombes, Taupiri farmer . PAGE 4
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DAIRY NEWS AUGUST 16, 2016
NEWS // 3
Grinning Gecko on global stage. PG.05
Landcorp’s Rangitikei farm snowed out last week.
‘Kidneys’ help water quality. PG.12
Snow brings exhaustion for Rangitikei farmers PETER BURKE peterb@ruralnews.co.nz
IT’S A rebuild, not a repair job. Could your cows eat less?. PG.24
NEWS ������������������������������������������������������ 3-17 OPINION ��������������������������������������������� 20-21 AGRIBUSINESS �����������������������������22-23 MANAGEMENT ������������������������������ 24-26 ANIMAL HEALTH ���������������������������27-29 MACHINERY & PRODUCTS ��������������������������������������30-32 TRACTORS & MACHINERY ������������������������������������ 33-34
That’s how Allan Wills, Federated Farmers’ Rotorua/Taupo president, describes the disastrously heavy snowfall that cut power to farms high up on SH5 – the Napier Taupo Road. One farmer in the area for 33 years says it’s the worst snowstorm he’s encountered. Among those hit were a few large dairy farms around the settlement of Rangitikei. DairyNZ, Federated Farmers, MPI and the Rural Support Trust were among many working with the
power company Unison to help farmers without power. Up to 70cm of snow fell, but there was no wind, allowing the snow to settle on the powerlines, its weight causing wires to snap and at least 200 power poles to break. A lot of damage was where access is difficult, and new poles, wires and other equipment had to be found. Fonterra’s head of co-op affairs for Bay of Plenty, Lisa Payne, says four days passed before milk tankers could get to some farms. Two farms are in the middle of calving and Fonterra has worked with them on collections. “Most farms have generators so they can still milk, but it’s taken
time to clear tracks to milking sheds to allow tankers through.” The issue there was not so much keeping milk cool, but a shortage of milk storage, she says. Things were far from normal but people were coping as best they could. It’s understood farms in the midst of calving are struggling to cope. Fences are believed damaged but until the snow thaws the full extent of this won’t be known. Duncan Klaus, owner of the Rangitikei Tavern, says the pub has been the rallying place for people restoring power and helping farmers deal with stock. He believes nearby Lochinvar Station had at least 100 power poles
down. Many affected dairy farms are large ones and they had problems getting cows milked and stock watered. As Dairy News went to press many houses were still without power and Unison was trying to set up a generator to serve clusters of houses, including Landcorp which has a large sheep, beef and deer farm at Rangitikei. Landcorp had to get its stock to lower ground, but sent staff to help other farmers struggling to clear tracks and look after stock. One farmer says people are exhausted, living on adrenalin and have problems that are far from over. • Canterbury gets off lightly - p25
DAIRY NEWS AUGUST 16, 2016
4 // NEWS
Taupiri farmer Grant Coombes.
Farmers need an angel at the table A TAUPIRI farmer is making a case for
his counterparts to adopt ‘good governance’ practices to avert stagnation and promote long-term prosperity. Grant Coombes says the rural sector could do much better in governance. He milks 2200 cows on five farms, is involved in equity partnerships, is a company director and a candidate in this year’s Ballance Agri-Nutrients director elections. And he recently became the only farmer listed as a director and shareholder of a new organisation called Directors Inc Ltd, in Waikato. Coombes hopes the group, a national first, will be a means of encouraging farmers to ‘govern’ better for greater long-term benefits and to more easily solve problems unique to farming. However, he accepts some persua-
sion will be needed. The term ‘governance’ has not traditionally been linked with farming, he says, and the idea can intimidate people who believe it fits better with the commercial sector. “People don’t fully understand it. Some think it’s handing over control. It’s not, effective governance is gaining control, and Directors Inc can help to get their heads around it.” Governance in the rural sector is needed in, for example, financial reporting, risk management, human resources, environmental issues, health and safety, and strategy and succession planning. Without formal governance disciplines farmers are more at risk, says Coombes. “Family businesses and complicated family dynamics further increase that risk and raise the stakes.”
Governance is seen as desperately needed in New Zealand’s agriculture sector, as evidenced by Simon Arcus, chief executive of the NZ Institute of Directors, saying last year that the term needs to be “demystified”. Coombes agrees. Many NZ farms are in family hands and they take a somewhat informal approach to discussing issues. That is where change is needed, says Coombes. “Farmers will look at the governance option and say, ‘[Oh no], we’re going to have to hold formal board meetings’.” But though governance will demand more structured planning, it doesn’t need to be daunting. “It is simply to bring together the wealth of knowledge individuals have and apply it to long-term strategic planning for their business. It is looking at
the bigger picture. “Farmers inherently have multifaceted skills – dealing with human resources, environmental solutions, pasture management, animal health and wider community issues. With some fine-tuning these skills can be valuable at a governance level.” Directors Inc offers solutions customised to each client, the overall aim being to help build on established practices and set long-term goals. “The concept moves the business towards setting up a board and perhaps appointing an independent chairperson,” Coombes says. A more formal governance template keeps owners’ eyes on the overall wellbeing of a business and its direction. Directors Inc offers an ‘angel director’ service: for six months a farmer can
retain an angel director – a qualified, independent and experienced advisor to offer perspective and guidance. The client chooses a director who best fits their business. After the first six months the business may bring that individual onto the board. It’s a bit like ‘try before you buy’, Coombes says. He uses the Directors Inc model in one of his businesses run by a family member. “Independence at the chair level is great to keep a level of formality that can sometimes drift away when operating a business with family.” He lists two advantages: banks look more favourably on an organisation with a functioning board and an independent director; and farmers can retain access tools to improve their operation after the angel director assignment ends.
What goes on between board and council? FONTERRA
FARMERS want clearer guidelines on how their councillors interact with the co-op board. Proposals to update the group’s governance to make the council’s role clearer, explain how it works with Fonterra’s board and management, and improve communication with farmer shareholders were put to shareholders this month. In the discussion document, Fonterra and the Shareholders Council say farmers have asked for better information about the formal working relationship between the council and board.
“This information is important to farmers as it will help to demonstrate the constructive tension that exists between the council and board,” the document says. “Feedback from members of the council and board indicates that the interface document needs to be revisited and revived and that the working relationship could be improved.” The proposals include allowing greater awareness of the mutual respect in the relationship between the council and board, a more proactive agenda planning/sharing of ideas,
feedback and meetings, and the council being able to test the board’s decisions on activities as they reflect co-op principles. There is also a proposal for the board to better utilise council as a sounding board for wider farmer sentiment. The discussion document also states that there needs to be more clarity on the role of the shareholder councillor and council, including their role as the cornerstone shareholder. “This will lead to a more accurate perception of individual councillor
performance and their collective ability to effectively represent farmers’ views to the board and management.” The discussion document is based on farmer feedback from the special meeting last year and shareholder meetings around the country. In a letter to farmer shareholders Fonterra chairman John Wilson and council chairman Duncan Coull said a working group has interviewed current and ex-directors and councillors to get their insights into how our cooperative’s representation function could be further improved.
“This work is summarised in the discussion document; it is designed to give you a view of the direction of travel the review is taking,” they told farmers. Farmer discussions are being facilitated this month on the discussion document. At the end of next month, Fonterra directors and councillors will hold farmer meetings to update them on progress. A special meeting will be called in mid-October to vote on any changes to governance and representation.
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DAIRY NEWS AUGUST 16, 2016
NEWS // 5
Grinning Gecko on the global stage SUDESH KISSUN sudeshk@ruralnews.co.nz
WINNING MEDALS has been normal at Grinning Gecko Cheese Company, Whangarei, from day one. Owners Catherine and James McNamara entered their first national competition within a month of starting their organic cheese business in 2013. They submitted the only cheese they had ready then – a ricotta – and it won a bronze medal. Catherine told Dairy News that since then three golds, two silvers, two bronzes and two category championships have come their way at the New Zealand Champion of Cheese Awards. Then last week came the icing on the cake: a bronze medal at the 2016 International Cheese Awards in Natwich, UK. This was for a Brie, entered in the category ‘soft cheese with or without rind’. Akin to the ‘Olympics of Cheese’, Nantwich is the world’s biggest and best cheese contest, McNamara says,
attracting this year a record 5000 entries from 31 countries. The firm’s “amazing” win brings “huge credit to the hard work and dedication of the whole team,” she says. “Winning a medal in our first international competition, and at such a prestigious show, is mind-blowing. We are thrilled and proud to put Northland on the world cheese stage. “We have won the title NZ Champion Soft White Rind Cheese two years in a row for our Brie so we wanted to see how it rated against cheeses from other countries.” But they endured nervous moments, being required to send the cheese to Sydney, to a consolidation point for all NZ and Australian entries for shipping to the UK. “We couldn’t justify the $750 shipping cost to send it by refrigerated freight for this leg of the journey so we sent it over by international courier, in a polybin with ice. It was a bit nerve-wracking as it took three days to get from Whangarei to Sydney and we kept imagining it ripening too
CHOCOLATE OR CHEESE? IT WAS either cheese or chocolate making for the McNamaras. Catherine says they wanted to launch a business in which they could work together. “I had always fancied the idea of becoming either a cheesemaker or a chocolatier. I didn’t have the artistic flair required for fine chocolate work so I learned how to make cheese and I loved it. “I made it at home then did commercial courses, mortgaged the house, bought a building in town and we began setting up our little factory.” James has an engineering background, Catherine human resources. “We have complementary skills which helps a lot,” she says.
quickly and not being able to breathe.” Supporting organic farming is important to Grinning Gecko Cheese, so-named for the green geckos living in manuka on the property. “Organic farming involves extra effort and cost but we believe this is the way of the future for all NZ. As awareness grows of the dangers of chemicals in our food and long-term damage to soil, waterways and our environment in general, the organic movement is becoming much more mainstream. “We have a finite amount of land in NZ, so we can’t just increase dairy production to compete on the world stage; we have to look at offering the best and healthiest option and increase value that way. This makes sense economically and environmentally.” Last year Grinning Gecko made 6.5 tonnes of cheese and sees scope for growth. Organic milk for cheese making is sourced from a local certified organic dairy farm. McNamaras see a future for organic dairy products in NZ. “For a country that trades on being ‘clean and green’ we need to walk the talk and nowadays more people are making a conscious decision to choose organic over non-organic products when given the choice.” The company is looking at exporting Grinning Gecko Cheese, and China is on its radar. James McNamara went to China in June and saw interest in their products. “We are not in a position to do large scale exporting, but the Chinese are interested in small, family run businesses with an exclusive selection of quality organic cheeses,” says Catherine.
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DAIRY NEWS AUGUST 16, 2016
6 // NEWS
Stay peoplefocussed as calving kicks in PETER BURKE peterb@ruralnews.co.nz
A CAUTION for dairy farmers: keep a close eye on the people aspect of your business. DairyNZ’s general
manager extension, Andrew Reid, says many farms will likely have to cut staff to reduce costs, so the fewer staff remaining will be under greater workload pressure. He says farmers
should not only take care of themselves and their staff, but also check on how their friends and neighbours are coping. “We talk often about stresses on animals and pastures at this time of the year, but we must be
aware of the stress on the people side as well and not take that for granted.” Reid says many dairy farmers will be pleased to see the end of July, in which the wet has made calving very difficult. Many farmers have Dr Nita Harding, DairyNZ.
CARING FOR NEWBORN CALVES THE NEW bobby calf regulations are very much in the minds of farmers as calving gets into full swing, says Andrew Reid. For most farmers the new regulations simply re-inforce the good management practices they have always adhered too, he says. “So it hasn’t really caused any consternation. Obviously what happened last year with bobby calves being in the public eye has made farmers very conscious that everything is under scrutiny, but good farm managers have nothing to worry about.” Dr Nita Harding, involved in promoting good bobby calf care,
says there is heaps of advice on the subject on the DairyNZ website. Bobby calves must be cared for to the same standard as all other calves onfarm, she says. This means giving bobby calves sufficient good colostrum and farmers looking for and treating problems, especially scours. “Weather plays a big part in animal welfare because it is more stressful for animals when it’s muddy underfoot and cold. “Animals need more energy just to keep on top of things. This also applies to cows that face the risk of metabolic diseases. So making sure animals are well
fed and that stress is minimised during bad weather is a big help.” Shelter is important, and Harding says under the Animal Welfare Code all calving cows should be checked at least twice in 24 hours. Farmers normally pick up calves daily, but in cold wet conditions they should consider picking them up more often and ensure they don’t get cold and wet and have colostrum. “Calves need to be kept in good dry, draught free shelters. A cold draught coming up through a floor or a gap in the wall will make conditions much colder for calves, so pay attention to calf shelter.”
been literally up to their armpits in mud and that, with long days and general stress, has taken its toll on people. Similar comments are heard from DairyNZ’s technical veterinarian advisor Dr Nita Harding. She says ideally farmers should have been set up before calving started, with good systems in place and staff well briefed on what is expected of them so they can virtually switch into autopilot mode and do the job with ease.
“The other thing is to make sure staff get a bit of time off and have a chance to rest and eat properly. It can be easy just to snack on things and not have a proper meal, which doesn’t help. “It’s important that staff are fit and able to do the job and are awake enough to think properly, rather than being unable to think logically any more. “Managers should also make sure they are in a good place so that staff manage the animals
Now for some sunshine PETER BURKE peterb@ruralnews.co.nz
DAIRYNZ’S GENERAL manager extension Andrew Reid says before it rained in many regions about three weeks ago feed supplies were looking reasonably good, but more sunny days are now needed to dry the soils. Wet, cold weather has made many farms vulnerable to pugging, especially when covers are low, he says.
“Its a judgement call as to how long to keep the stock on pastures. But it’s important the dairy sector sticks to predetermined pasture rotation so they don’t run out of feed in September, and be mindful of conserving pasture. “They also need to be aware of longer term damage from pugging at this time of the year.” Reid says recent big frosts in some regions haven’t impacted soil temperatures; he notes that it would take a string of frosts to restrict
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Calves need to be kept in good dry draught-free shelters.
pasture growth. “But a lot will depend on what happens in the next few weeks,” he says. Cow condition nationwide is generally good, Reid says. But farmers will have to watch their animals closely through to balance day. In late autumn and early winter, facial eczema hit many dairy farms, especially in Taranaki, the lower North Island and Waikato. Reid says it’s too early to tell what effect this has had on cows.
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DAIRY NEWS AUGUST 16, 2016
8 // NEWS
State farmer eyes PKE-free products PETER BURKE peterb@ruralnews.co.nz
LANDCORP CHIEF Landcorp chief executive Steven Carden.
executive Steven Carden says its decision to stop using palm kernel expel-
ler (PKE) may enable it to develop new products such as PKE-free milk. Landcorp says it will not feed PKE on any farms from the end of this financial year; all farms will switch to alternative feed
supplements by June 2017. A point of difference for New Zealand farming is its ability to grow grass and produce grass-fed animals, he says. “There is growing interest in this food globally.”
“Our shift to remove PKE from our farms is expected to be virtually cost-neutral; and we see significant longer term gains in being able to attract new premium customers. “Landcorp wants its partners and customers to know they can trust that we farm sustainably and care for the environment. We need to anticipate shifting consumer expectations of how their food is produced and change how we farm accordingly.” Carden says the move away from PKE will support Landcorp’s Pamu high value brand based on feeding animals natural grass. The use of PKE was not consistent with the Pamu positioning, which is about developing high value products. Being PKE-free adds to the value of the Pamu proposition. Landcorp decided some time ago to drop PKE from supplements, then it had to ensure it had alternatives to fill the resulting feed gaps. But PKE does not exceed 6% of total feed used -- less than 1kg/cow/day. “The first thing is making sure we get our stocking rates and pasture utilisation working effectively. There has been a lot of the criticism that having PKE on hand can make farmers a little imprecise when it comes to pasture management.
“We are looking at planting alternative pasture species such as chicory where summer dry conditions prevail and where PKE might have been used in the past. This includes such areas as the central plateau in the North Island. We are also looking at cropping options and maize and grass silage as the other primary alternatives.” Carden says like many other farmers Landcorp has found PKE an effective supplementary feed but it has something of a bad press. “There is a lot of concern about deforestation in South East Asia where our PKE comes from. Greenpeace and others have been giving Fonterra a hard time about PKE and Fonterra has come out and said it would like to see farmers use less and that’s a good thing.” The other serious issue raised about PKE is its potential to bring foot and mouth disease into NZ. “A number of people” have expressed concerns about the biosecurity risks of PKE. Carden says Landcorp is not the first NZ farmer to come out and say they won’t use PKE. And while some farmers will still see PKE as a viable supplement he believes Landcorp has decided correctly and hopes others will follow the example.
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FEDERATED FARMERS is backing the proposed national biodiversity forum. Feds spokesperson for biodiversity Chris Allen says we now have opportunity to come to a common understanding of the pressures and priorities for biodiversity, on land and in water. “From here we chart a way forward. Part of this will be agreeing on a national policy statement. Alongside that we have opportunity to look at how we can upscale ‘action on the ground’ partnerships,” says Allen. “The vision and thinking on the recent predator-free New Zealand announcement is an excellent start for tackling key issues for native biodiversity on land and water.” Environment Minister Nick Smith announced the biodiversity forum at the Environmental Defence Society conference in Auckland last week. Allen says the ‘Cape to City’ project in Hawke’s Bay is an example – killing predators and restoring plants and wildlife on 26,000ha between Hastings, Cape Kidnappers and south to Waimarama.
DAIRY NEWS AUGUST 16, 2016
NEWS // 9
All Blacks’ lock fronting for farmers’ wellbeing NIGEL MALTHUS
ALL BLACK Sam Whi-
telock has joined the rural wellbeing scheme Farmstrong as an ambassador. Whitelock, from a farming family and a lock in the All Blacks, Crusaders and the Canterbury provincial team, is fronting a Farmstrong campaign fittingly called ‘Lock It In’. This news came at a community day at Hurunui Rugby Clubrooms, Culverden, that included a barbecue and Whitelock coaching a game of touch rugby with children from the Amuri area primary school. ‘Lock It In’ will feature Whitelock in a series of short videos, sharing his personal strategies for
maintaining wellbeing and managing stress, to encourage others to find out what works for them and ‘lock it in’. Farmstrong also has a contest on its website to “win Sam for a day,” inviting rural folk to submit proposals for an event for Whitelock to attend. Farmstrong was begun about a year ago to promote personal wellbeing in rural communities in the face of difficulties such as the dairy price slump and the long-running East Coast drought which is badly affecting the Amuri district. “I’ve been really impressed with what Farmstrong’s achieved in its first year, so when the opportunity came for me to get involved I jumped to it,” Whitelock says.
“The issue of wellbeing in the rural community is hugely important, and very timely right now. Also important is knowing there are often simple steps we can all lock in to help us get through our day-to-day challenges. “Personally, things I do at home and on the rugby field help me, and I know these also cross over into farming. I’m looking forward to sharing these and helping Kiwi farmers to live well and farm well,” he says. Farmstrong spokesperson Gerard Vaughan says Whitelock’s tips on managing physical and mental fitness are right in line with what farmers want to hear. “We know having him on board will go a long way in helping farmers to keep
investing in themselves and in turn their family, employees, community and businesses. “Having Sam join Farmstrong is the icing on the cake of a great first year, with on average 1000 people a week engaging with us. With Sam’s support we’re excited about seeing that number lift so we can support more people farming in New Zealand,” said Vaughan. In its first year, Farmstrong has had at least 51,000 website hits, run 31 Healthy Thinking workshops in a programme led by Dr Tom Mulholland, sponsored a touring comedy show, and run the Fit4Farming cycle tour from Ngatea to Bluff alongside a physical fitness challenge for individuals.
Wastewater turned into fert NEW WASTEWATER treatment technology at Fonterra’s Edendale site is turning dairy waste into fertiliser, helping local pastures flourish. The co-op’s southernmost site is making a fertiliser product from its microbial treatment of wastewater, and it is said to be showing good results on pasture.
In fact, it is found to be amongst the most nutrient-rich dairy-derived fertiliser in New Zealand, the co-op says. Fonterra environmental manager Ian Goldschmidt says the plant uses microbes to consume the dairy solids contained in wastewater and this in turn produces a dense liquid.
S A L E ON N O W !
“New technology in the plant enables us to decant that liquid into a rich fertiliser that is producing exceptional results on pasture,” Goldschmidt says. The plant technology – also in use at Fonterra’s Stirling, Pahiatua and Lichfield sites – is helping the co-op achieve planned sustainability.
All Blacks’ lock, Sam Whitelock at the campaign launch.
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DAIRY NEWS AUGUST 16, 2016
10 // NEWS
One-stop shop for farming data FONTERRA AND LIC
are developing online technology to give farmers a one-stop view of their operations. The idea is to bring together data on a farmer’s milk production and quality, herd and pasture, local weather forecasts and more into one easyto-use online portal. The two co-ops will get farmers’ feedback on what they would like included: 50 farmers nationwide will be invited to trial a prototype this month and give feedback. The aim is a tool available for all farmers, for first release by late this year. Fonterra chief operating officer Farm Source Miles Hurrell says the tool is in response to what farmers want – one place to access
Miles Hurrell
all data sources to improve onfarm performance. “Farmers now have lots of data sources, all developed in isolation, and have asked for a way to bring all those data sources together. This would reduce the need for double entry of data, and enable
them to benchmark their farm against others using aggregated data, leading to more productivity and profitability. “The technology is aimed at helping farmers trim costs and utilise their resources as efficiently as they can.”
LIC chief executive Wayne McNee says farmers have lots of information to try to consider, and an ever-increasing range of technology on offer. Both can add huge value to a farming business, to support more informed decision making and improved profitability, but accessing and using the information to make decisions can be difficult. “Farmers have told us they want simplicity, one place to see all their records and information, and in real time.” LIC’s link with Fonterra is expected to reduce duplication and capitalise on existing expertise and resources. The co-ops are looking to work on the project with others in the industry.
Good 2016 arable harvest, much of it sold THE 2016 arable harvest has gone well despite challenges, according to survey results released by the Arable Industry Marketing Initiative. Federated Farmers arable vicechairperson grains Brian Leadley says drought-like conditions leading into harvest had many farmers concerned with how and what yields may look like this season. “Survey figures show that while yields were slightly down in places, there were still some exceptional yielding crops. “Feed wheat yields (343,700 tonnes) were up 7% on last season with 70% sold so far; sales are well ahead on previous years,” says Leadley. “Arable farmers have responded well to market signals and are well placed to provide domestically grown feed to assist in drought recovery. “Dairy farmers signalled they didn’t want feed barley, so the area planted has reduced by 22% on 2015. It is fore-
cast to drop 41% on 2015 for the 2017 season. This planned reduction shows that current barley sales are more about moving product than returns. Milling wheat (101,800t) was up 30% on last year with 90% of the wheat sold so far. “Although there is a bit of domestically produced grain available on farms, a lot of the harvested product is sold,” says Leadley. “Domestic grain is competitive against imported products and is quality assured and traceable through the United Wheat Growers QAGrainz scheme. “Unless buyers communicate with arable farmers on next year’s feed it may not go in the ground and may not be available when they want it in 12-18 months,” says Leadley. “Long-term relationships with arable farmers will help them plan their crops and assist them to produce for other demand, like pork or poultry for grain.”
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DAIRY NEWS AUGUST 16, 2016
12 // NEWS Slit traps on Waikato peat lakes help improve water quality.
Artificial kidneys help lift water quality the Land Environments of New Zealand threatened environments classification, peat lakes are globally rare ecosystems. Waikato region has at least 30 in its peat lakes area, one of five catchments where Fonterra and
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DOC work in their Living Water partnership. This works with farmers, iwi, hapu, community groups and others to improve the abundance and variety of native wildlife and water quality. The Waikato peat lakes catchment includes three lakes where Living Water does its work. Fonterra’s North Island project manager for the scheme, Tim Brandenburg, says the peat lakes are integral to NZ’s landscape, and the silt traps are crucial to restoring lake water quality. “Most pollution comes from sediment and excess nutrients that drain off cleared lands surrounding the lakes. Silt traps are like a vital organ the ecosystem needs to recover; they act like a kidney. “We’re artificially creating what would happen in nature, when a stream meanders through a wetland and filters out
silt coming downstream.” DOC Living Water Waikato site leader Mike Paviour says the project has given the lakes the equivalent of a kidney transplant. “On top of that, we’re planting the silt traps and lake edges with thousands of native wetland plants to provide habitat for native wildlife. “The native species thrive as habitat becomes established, and we’ll improve public access so everyone can enjoy it.” The other Living Water catchments are Kaipara Harbour’s Hikurangi catchment; Takapa Moana (Firth of Thames) Pakorokoro/ Miranda catchment; Waikato peat lakes – especially lakes Areare, Ruatuna and Rotomanuka; Te Waihora (Lake Ellesmere) in Canterbury – especially the Ararira catchment; and Awarua -Waituna in Southland, especially Waituna catchment.
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has scooped its third big industry award for the year. The top-selling spread brand won gold and silver medals at the 2016 Dairy Industry Association of Australia (DIAA) Queensland Dairy Product Competition. Western Star is Australia’s best-selling spreads brand and has won industry awards over the years. The latest win follows recent honours at the 2016 Grand Dairy Awards where Western Star was voted ‘best original butter’. Fonterra Australia regional manager west, Andrew Nooy, says these awards are great recognition for the people at its Cobden site and local dairy farmers. “Western Star has been a family favourite for generations. To maintain that reputation comes down to our high quality standards, ongoing innovation and superior cream from farmers. “Made with only three natural ingredients, it is Western Star’s simple recipe that makes it a winner. “We’ve seen tremendous growth in past years for our Western Star brand, helped by the advent of cooking shows and more Australians cooking and entertaining at home.” Western Star will celebrate its 90th anniversary in October.
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DAIRY NEWS AUGUST 16, 2016
NEWS // 13
Excellence earns an extra 20c/kgMS PETER BURKE peterb@ruralnews.co.nz
FARMERS SUPPLYING Maoriowned dairy company Miraka stand to get a bonus of 20c/kgMS this season if they adhere to an incentive scheme newly introduced by the company. Te Ara Miraka Farm Excellence is a scheme Miraka chief executive Richard Wyeth says is designed to make sure its suppliers are world class and run businesses that are resilient. He says the scheme has five pillars: people, environment, animal welfare, milk quality and prosperity. Within these are 31 criteria of which 13 are mandatory. These in turn are extrapolated
out into a points system – all told 100. “If they pass the mandatory ones they will get some sort of incentive, but if they get the full 100 points they will get the extra 20c/kgMS at the end of the season,” Wyeth says. “The scheme runs over 12 months so it’s over the entire season, from now to next June, after which payments will be made.” The scheme is open to all suppliers and is voluntary and farmers may decide whether or not to take part. Miraka has 107 suppliers and those who join the scheme will be visited regularly by an external auditor who will track their progress. Among the mandatory criteria is one relating to health and safety. It requires a farm to have a health and safety policy
Richard Wyeth, Miraka.
for all staff and visitors. “It’s setting the benchmarks that ensure our farmers are the best in the class. It’s Miraka showing the way we
support and encourage a culture of excellence across the entire supply chain. It means we can talk to our customers and tell them our farmers are world class and that adds to our story as well,” Wyeth says. Aspects of Te Ara Miraka are not unlike the Irish farming excellence scheme Origen Green which incentivises farmers who comply with a range of criteria, with emphasis on the environment. Wyeth says there are some similarities to Origen Green, but the criteria are different and much aligned to Miraka’s corporate values which have a special link to whanau. “Ours are a bit different in that we are looking at the environment, people.... For example we want to make
Regions fine-tune riparian efforts NEW ZEALAND has reached a
major milestone in its campaign to keep the country’s waterways clean. Every region now has its own tailored riparian management plan to promote stream health and water quality. The milestone was reached recently when regional plans were completed and accepted by Taranaki, Auckland, East Coast and the Top of the South, says DairyNZ sustainability and land management senior developer Matt Highway. The plans and associated planting guides and planners for individual farms are part of the dairy industry’s commitment to the Water Accord and were devel-
oped under the Transforming the Dairy Value Chain (TDVC) Primary Growth Partnership programme, a seven-year, $170 million effort including DairyNZ, Fonterra and MPI. The aim is to create new dairy products, increase on-farm productivity, reduce environmental impacts and improve agricultural education. Other TDVC initiatives supporting the Water Accord include better data collection for nitrogen reporting and improvements to nutrient and effluent management by training and certifying farmers, rural professionals and suppliers to the industry. Highway says the plans have been developed with regional
councils. “This allows us to get regionally relevant information on plants that will work in each region; it highlights weed varieties to look out for and identifies funding or advice opportunities,” he says. The plans also include advice and guidance from farmers in the region. “Guides all have a local farmer case study. They give tips and tricks and valuable info that will hopefully inspire others to do the same.” Highway says the work on the plans highlights the variety of conditions in each region. “A range of climatic conditions exist throughout the country so different plant species that are suited to these climatic and environmen-
sure farmers have proper timesheets for their staff and proper contracts in place.” The idea of Te Ara Miraka was discussed for some time. The scheme effectively sees farmers having a stake in the Miraka culture. Wyeth says farmer compliance with the scheme will add value to the Miraka brand, and with the company payout range of $4.00-$4.30/kgMS an extra 20 cents is good incentive. “We have been out talking to farmers and some were initially a bit apprehensive. But they realise in the current tough environment the prospect of an additional payment will strengthen the resilience of their businesses,” he says.
Every region now has its own tailored riparian management plan.
tal conditions need to be selected,” he says. “Often management of riparian areas will differ also. For example, in the southern South Island we recommend plant protectors around trees to help plants grow in cold and windy conditions, whereas in the warmer regions these are not as important.” Logan Brown, Horizons Regional Council’s (HRC) freshwater and partnerships manager, says the plans and guides help to get relevant information out to farmers. The HRC covers the ManawatuWhanganui region. “These resources are used dayto-day by Horizons teams when discussing riparian management with landowners,” he says.
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DAIRY NEWS AUGUST 16, 2016
14 // NEWS
Dedicated advisor a mentor to many LIC FARMWISE consultant Brent Boyce has beaten six other finalists to claim the DairyNZ Dairy Consultant of the Year award. Boyce, the consultant for Nelson, Marlborough and Tasman, was one of three category winners announced at the 2016 Farmax Consultant of the Year Awards in Rotorua last week. He wins $4000
towards a professional research project and a Windows tablet. The judges say they were extremely impressed with the endorsement in Boyce’s nomination and that he had an excellent grasp of what it took for a farm business to be successful. “He has had a positive influence in his local community, is an influential
role model for his peers in the FarmWise group and is a regular speaker at industry events,” said the judges. “His passion and customer focus showed in his nomination. We can clearly see he is an ambassador for his industry.” His nominator said Boyce had made “significant contributions to the dairy industry as a grass roots dairy farm consul-
tant over many years, working in a challenging, non-traditional dairying area at the top of the South Island.” The logistics of visiting 70 regular clients in the Nelson, Marlborough and Buller regions mean Boyce typically travels 80,000km a year. Boyce, a farm consultant for at least 20 years, is known for his dedica-
Dairy Consultant of the Year Brent Boyce (right) with Farmax chief executive Gavin McEwen at the awards.
tion to clients and to rural communities. “His ability to mentor young sharemilkers and farmers has been greatly appreciated by many in the region,” said his nom-
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inator. Boyce has also written and presented papers on farming topics and has organised field days to help educate and connect the local farming community. Applicants had to say how they would use the prize money and the judges were impressed with his “very specific, relevant project”. Boyce plans to investigate the effects on milk production of changing milking frequency during the latter half of a seasonal lactation. The judges said: “we feel that knowledge gained from this project could deliver something of real value to the industry”. Farmax chief executive Gavin McEwen says he was impressed with the excellent standard of nominees in all categories. “The judges had a tough job as the finalists were all impressive. The winners have gone above and beyond to make a difference to their clients and the industry. These rural professionals demonstrate commitment, innovative thinking, passion for farming and are all working hard to advance the industry and better their communities. We congratulate
them for their drive, effort and vision,” says McEwen. New Zealand Institute of Primary Industry Management (NZIPIM) partnered with Farmax on the awards this year and chaired the judging panel. NZIPIM chief executive Stephen Macaulay said: “NZIPIM is proud to be associated with the Farmax Consultant of the Year awards which recognise and promote excellence in the rural profession. As expected this year’s awards were tightly contested in the three categories. The role these rural professionals play in the agricultural industry is significant, especially given current challenges facing the rural sector in NZ.” From 2017 NZIPIM will take over running the awards, although Farmax will continue to sponsor the Emerging Rural Professional category. McEwen says the change makes sense and “we are excited to be supporting NZIPIM as they take on the Consultant of the Year Awards next year. Sponsoring the Emerging Rural Professional of the Year category aligns closely with our strategy.”
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DAIRY NEWS AUGUST 16, 2016
16 // NEWS
Kiwis need Frenchman’s passion – about milk PAM TIPA pamelat@ruralnews.co.nz
ward,” Proudfoot says. “We spend an awful lot of time slagging off the French; I am from England so I probably spend more time slagging off the French,” he joked. “But [though] French
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Ian Proudfoot
THE NEW Zealand dairy farmer is passionate about his farm and how much milk goes into the tank,
but not the product the milk is made into, says Ian Proudfoot, KPMG global head of agribusiness. “We need to be foodies. We need to have the passion of foodies to ensure we take our industry for-
dairy farmers may be the world’s most inefficient dairy farmers, get half their money from the government and may go and protest down the Champs Elysees when something annoys them, they are passionate about their milk, where their milk goes, what cheese it becomes and what food experience they deliver to the people who eat that cheese. “Contrast that with NZ dairy farmers: they are passionate about their farms and their businesses, they are passionate about how much milk they put in their tanks. But what happens to the milk after collection by Fonterra and taking to the dryer is not something they really engage with. “Think about the implications of that: the French are world famous for their cheeses, we are famous for rugby. And that to me says it all.” Proudfoot made these observations on the dairy industry at a Horticulture NZ conference in Nelson early this month. “We are not famous for food in this country although we are the only developed country that relies on the production of food to support our economy. What has to change? A lot, and it’s going to be hard.” The value sitting along the value chain grows exponentially: the closer you get to the consumer the more value is available to be captured, he says. An estimated 30% of the retail price comes back to the farmer. Zespri does well at about 27% for Gold; some wineries do even better with high-end products. But dairy probably does around 10%; some other sectors 10-15%. “But generally not much of the retail value is coming back. Why is that? There are a couple of reasons. The major reason is we have been incredibly good at investing in stainless steel and capital fixed assets -- the stuff that enables us to process our products…. We’ve had a production focused industry, that is the way it has been created. “But if you look at how
you are going to create value in the markets I have described -- where you have consumers with expectations -- we actually need a very different skill set.” Four key attributes are needed: spending on significant R&D; the right people; people who can engage with customers and understand who they are; and brand experience. “You could say it is hard to get a brand experience when you are selling agricultural products,” Proudfoot says. “It’s not. “Think about Beaujolais nouveau [wine]; when a new Beaujolais comes out there are celebrations all over the world. It is a deliberate brand experience similar to an Apple iPhone or whatever; you get the excitement of something new coming onto the market. “[But] when we get spring milk you definitely don’t see queues anywhere. The reality is we haven’t got that brand experience, that excitement of a new product in the market.” Proudfoot says we need to build that and ensure every time someone experiences our products they get a consistent experience. “Our folks need to be innovative, better than everyone else and hugely involved to meet the needs of consumers,” he says. “They need to reflect on how consumers are living.” Proudfoot spent time recently with chief executive Aidan Cotter who designed Ireland’s Origin Green. “The key thing that resonates with me about Origin Green is everything in it has been designed to meet the needs of the consumer. “How do they know what consumers want? They put chief executives in people’s houses to live with them for weekends, to eat with them and shop with them; they have got incredibly close to their consumers.” That’s how you better understand what products are going to be needed; it’s not cheap and it’s not easy, but it’s what we need to do.
DAIRY NEWS AUGUST 16, 2016
WORLD // 17
Whiff of optimism in tight times JOHN DROPPERT
INTERNATIONAL DAIRY markets are
beginning to show early signs of a turnaround. A whiff of optimism is there to be caught as the fundamentals of supply and demand slowly respond to the prolonged downturn. This will ultimately be good news for farmgate prices, but we’re still a long way from a decent boost to farm incomes. Evidence is mounting that the commodity price cycle will deliver some dividends very late this season or into 201718, but 2016-17 is going to stay brutally tight in the interim. Not surprisingly, this season’s low farmgate prices have severely undermined farmer confidence, coming after a tough season in 2015-16 capped off by late-season step-downs covering around half Australia’s milk. The situation in Western Australia, where booming production has given way to some farmers not having supply contracts renewed, hasn’t helped. With many farmers under the pump -- and fed up with losing money – the question regularly asked by those within and outside the industry is, ‘what does this mean for milk production?’
Although it has medium and longer term implications for manufacturing investment and our industry’s place in the world, total national milk production isn’t of huge relevance in the short term at the individual farm level, especially for those in export-focused regions. But it’s seen by many as an indicator of industry ‘health’, and the current squeeze is prompting vigorous debate. A few years ago when markets peaked, some in the industry suggested growth to 16 billion L -an increase of about 66% -- was possible in the medium term. Now there are suggestions that the industry could rapidly contract to the extent of no longer producing an exportable surplus -- implying a 33% fall to around 6 billion L. Within that range, it’s about 400L for every Australian consumer. There will always be a wide range of numbers and commentary on the subject, and most views fall well within the extremes. The forecast for 201617 adopted by Dairy Australia is now based on a 5% drop in the national total, implying around 9.1 billion L for the full season. As a number, 5% doesn’t sound like much, and for many farmers it doesn’t seem to reflect the full magnitude of the current
squeeze. But if realised, it would be the second-largest year-on-year drop in 15 years -- surpassed only by the horror season of 200203 (down 8%) and equal to 2006-07 (down 5%). Things could be that bad and worse; as mentioned milk prices and confidence are at rock bottom in many regions. Cull cow prices are booming, which could encourage farmers to cull harder (small operating margins and good realisation of capital) or potentially cull less (fewer cows need to be sold to plug the cashflow gap). To date, it looks like the former, but in many respects 2016-17 is looking increasingly a ‘mixed bag’. The mud in which southern Australian farmers are now slogging around follows a healthy autumn break and good follow-up rains. Whilst there’s now a risk of damage from flooding and waterlogging, a full soil profile will help drive pasture growth when the weather warms up. In addition, winter grain crops are looking good in many regions, and fodder production is expected to be strong. Quality will, of course, depend on curing conditions at harvest. Pricing for grain has already begun to reflect this; so has international market pressure. Fertiliser prices remain subdued, as do interest
Milk Production Report (Litres '000s) National
Month
June-15
NSW
VIC
QLD
SA
WA
TAS
Australia
90,156
438,399
32,102
40,488
31,149
47,701
679,995
June-16
82,593
398,703
32,040
35,797
31,758
39,009
619,899
-8.4%
-9.1%
-0.2%
-11.6%
2.0%
-18.2%
-8.8%
June-15
13.3%
64.5%
4.7%
6.0%
4.6%
7.0%
100.0%
June-16
13.3%
64.3%
5.2%
5.8%
5.1%
6.3%
100.0%
NSW
VIC
QLD
SA
WA
TAS
Australia
% change Region Share
Year To Date
Region Share
Total
2014/2015
1,159,725
6,390,036
410,554
516,489
363,522
891,353
9,731,679
2015/2016
1,164,545
6,186,157
404,975
513,680
387,058
882,969
9,539,384
% change
0.4%
-3.2%
-1.4%
-0.5%
6.5%
-0.9%
-2.0%
2014/2015
11.9%
65.7%
4.2%
5.3%
3.7%
9.2%
100.0%
2015/2016
12.2%
64.8%
4.2%
5.4%
4.1%
9.3%
100.0%
NSW
VIC
QLD
SA
WA
TAS
Australia
2014/2015 Region Share
6,390,036
410,554
516,489
363,522
891,353
9,731,679
11.9%
65.7%
4.2%
5.3%
3.7%
9.2%
100.0%
Average Milkfat & Protein (%)
Milkfat
NSW
VIC
QLD
SA
WA
TAS
Australia
June-14
3.99%
4.23%
4.09%
3.92%
3.99%
4.56%
4.19%
June-15
4.05%
4.27%
4.17%
3.79%
3.94%
4.72%
4.22%
June-16
4.10%
4.24%
4.19%
3.98%
3.96%
4.59%
4.21%
1.2%
-0.6%
0.4%
5.1%
0.5%
-2.8%
-0.2%
NSW
VIC
QLD
SA
WA
TAS
Australia
June-14
3.33%
3.43%
3.35%
3.29%
3.28%
3.58%
3.41%
June-15
3.36%
3.45%
3.40%
3.33%
3.32%
3.61%
3.44%
June-16
3.36%
3.44%
3.36%
3.31%
3.30%
3.61%
3.42%
% change 15/16
-0.3%
-0.3%
-1.3%
-0.8%
-0.5%
-0.1%
-0.5%
% change 15/16
Protein
1,159,725
New data series from 1/7/2006. Produced by Trade and Strategy, Dairy Australia Limited. Source: Dairy manufacturers
Australian milk production is falling.
rates. Irrigators are seeing water prices tumble as inflows surge. None of this should be taken as suggesting that all is well. Financially, 2016-17 will be a tough
season for most farmers, and hard decisions will be made out of necessity. With no margins and few profits nobody is expecting growth. But while the financial situation is on
a scale between manageable, bad and ugly, good weather and some cost relief present a wider set of strategies to handle it. The bottom line is that the outcomes for milk
production are less than assured, and Dairy Australia will be regularly updating the outlook with this in mind. • John Droppert is an analyst with Dairy Australia.
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DAIRY NEWS AUGUST 16, 2016
20 // OPINION RUMINATING
EDITORIAL
Passion for food
MILKING IT... More jobs
NZ FIRST leader Winston Peters takes exception to a new dairy factory in Southland because it will majority owned by Chinese. Another example of one of China’s largest state-owned enterprises gaining more control in the economic affairs of this country, he charges. But is there a local company that can fork out $200 million for a new factory. Not only is Southland’s economy gaining an investment of $200m, local farmers will hold 20% stake in the company. And the business will create 100 jobs.
Don’t sniff
YOU MAY never have to give your milk the sniff test again. Millisecond Technologies has discovered it can make refrigerated milk last two months by rapidly heating and cooling it after pasteurisation. The method -- ‘low temperature, short time’ -- could help combat the problem of food waste. Scientists found that heating pasteurised milk to 10oC for one second eliminates 99% of bacteria that pasteurising didn’t kill. This increased the milk’s shelf life to 63 days from the 14-35 days normal for pasteurised milk. “The treatment takes out almost everything,” says Bruce Applegate, associate professor of food science at Purdue University and coauthor of the study. Test participants found no differences in color, smell, taste or aftertaste between regular pasteurised milk and the newly treated milk.
Hit on revenue
EMBATTLED AUSTRALIAN dairy processor Murray Goulburn has recently faced more bad news. It lost to Bega Cheese a A$108 million contract to supply Woolworths’ private label cheese, UHT milk, adult milk powder and cheese. Despite this hit to its annual revenue the coop remains positive. It has retained the private label contracts for mozzarella shred cheese and private label butter. Murray Goulburn says this butter contract has grown to include extra products and increased ranging.
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More PKE grumbles
GREENPEACE CLAIMS Landcorp’s decision to stop feeding its cows PKE is a big deal for the New Zealand farming landscape. It now wants Fonterra to follow suit. PKE use on farm is an economic issue for farmers; right now it’s very cheap food. PKE use on dairy farms should not be curtailed; after all, it’s another option for farmers managing feed.
THE WORD ‘foodie’ has got about, and not just to denote a small niche group. Someone who loves to cook, or try out eateries. Reality TV cooking shows are part of it, so are foodie movies. That’s a lot of people. And, says KPMG’s Ian Proudfoot, there is a standout foodie nation – the French. Haven’t we always known that? Yes, but Kiwis haven’t yet seen the power of ‘foodyism’ to promote export trade, he says. Proudfoot’s argument is simple: the French love food, are passionate about the whole value chain– ‘gate to plate’ – and it shows in all they do, right to the consumer’s plate. Kiwis take note, he says. “We need... the passion of foodies to ensure we take our industry forward.” Like French farmers. “They are passionate about their milk, where it goes, what cheese it becomes and what food experience the people have who eat that cheese. The French are world famous for their cheeses, we are famous for rugby.” He argues, the Kiwi dairy farmer’s passion is the farm, the herd and the economics of getting more milk into the tank. Then he watches the tanker carry it down the drive and that’s it. Could he be right? OK, so we get passionate, but it needs to be about the food the consumer wants. Are the Irish showing us a way forward? Their Origin Green national strategy has them sending CEOs of food companies into consumers’ kitchens, dining rooms and lounges for whole weekends, to discern what they want to eat. The value sitting along the food value chain grows exponentially: the closer you get to the consumer the more value is available to be captured, Proudfoot says. You can’t get closer than a consumer’s dining table. What responsibility do dairy co-op executives carry here? Where does the balance lie for them between welding stainless steel and front-footing better market intelligence gathering? If farmer-directors are bent on welding more stainless, they may frustrate executives with their eyes properly on the markets. This spring’s lower milk flows, and the sharp rise in dairy futures seen last week, looks like the time to ask, how are we to create more value and get customers excited by their ‘brand experience’ with milk-derived products from New Zealand?
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DAIRY NEWS AUGUST 16, 2016
OPINION // 21
Steady ‘knitting’ is what we propose MURRAY KING
DAVID WALLACE commented in detail on proposed changes to LIC’s capital structure (Dairy News, July 12). This followed eight meetings – the ‘thinking out loud’ shareholder roadshow – where the board shared its early thinking on changing LIC’s capital structure. The LIC board agrees with much of Wallace’s thinking, valuing his and all shareholders’ opinions. Our proposal to separate the company into two is in part to allow the cooperative to ‘stick to its knitting’. Where we appear to disagree is the definition of the ‘knitting’. He refers to farmers having “little appetite for LIC investing in technologies other than components of herd improvement”. We agree; farmers have told us this for some time, hence the proposal to separate out items such as automation and devices. We consider technology in dairy farming is changing faster than is acknowledged in Wallace’s commentary. As an offshore investor, he well knows of some of the changes in the industry, but he is less informed on the rate of technological change in herd improvement. While the fundamentals of herd improvement remain – namely accurate identification, per-
formance recording and using that data to generate superior livestock then disseminating that through the national herd – the technology to enable this is changing more quickly than ever. LIC must position itself to exploit new emerging technologies. As noted in the Ministry for Primary Industries’ 2012 consultation document (‘The New Zealand Dairy Herd Improvement Industry: Transfer of the Core Database and Review of Regulatory Settings’) the success of NZ’s dairy industry can be directly attributed to, among other things, NZ dairy farmers’ historic commitment to: 1) generating and recording information on the efficiency with which their dairy cattle produce milk; and 2) using this information to breed selectively to improve the genetic makeup and therefore productivity of their herds. As also noted in the same document, recent industry studies show that the past decade has seen significant growth in milksolids per cow, and that about two-thirds of the improvement in cow performance over this period can be attributed to the genetic improvement in the cows. LIC and its farmer owners have contributed much to that improvement. To briefly recap on the LIC board’s capital structure proposal (see www.lic.co.nz for more detail):
Firstly, in its simplest form the proposal ringfences core components into a true dairy herd improvement cooperative – namely genetics and the database. ■■ Secondly, items such as automation, devices and software are to be established in a separate agritech company still wholly owned by the cooperative. If there is a proposal to introduce external capital, shareholders will have opportunity to vote on that. Here are some key issues raised during the shareholder roadshow. Minda: where does it belong? The technology to collect and use information is changing rapidly. LIC’s herd management software Minda does much more than record basic herd improvement information. It is a comprehensive tool to help farmers manage their herd and farm. LIC has spent a lot of money developing and improving Minda, but the way software is developed is changing rapidly. There is a very high risk, if LIC does not continue to spend heavily and develop improved versions of Minda, that we will be disrupted by a competitor. Many start-up companies worldwide are developing competitors to Minda. To remain competitive it must be upgraded substantially and often. ■■
At present our 10,500 shareholders pay for the development of Minda; the proposal we recently put to farmers is to allow LIC to share that cost of development with other customers around the world. That said, the board notes the concerns farmers expressed during the roadshow, and we are considering ways to retain ownership of Minda while allowing the proposed agritech company to develop it in a modern, competitive way. What about herd testing? It appears to make sense to leave herd testing in the cooperative. Herd testing as a service loses money, but it is provided to farmers to ensure LIC can collect the information it needs for its breeding programme. Again though, the technology is changing rapidly. In our view, in-line meters such as LIC Automation’s YieldSense and CellSense will replace traditional herd testing within five years. As for LIC’s goal to become a billion dollar company, this was set when the fortunes of the dairy industry were much more favourable. This now appears unattainable in the short term and our current focus is on transforming the business. We will further update shareholders at our annual meeting in October. • Murray King is the chairman of LIC.
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DAIRY NEWS AUGUST 16, 2016
22 // AGRIBUSINESS
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Europe, NZ key to price lift STEVE SPENCER
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milk prices are happening now in Europe and New Zealand. Changes in total milk supply are tipping the market balance towards a net demand situation. If that trend stays, farmers’ milk prices will go up. Mild excitement can be seen amongst dairy analysts working on the supply side of the global industry, because of last month’s European data. For the first time since March 2015, milk output in total in the EU fell, versus the same time in the previous year. That comparison is somewhat artificial as, in early 2015, EU dairy farmers realised their surge in output in 2014 was going to incur a quota fine for over-production, so they went into damage control to curb output for the first quarter of the year. Looking further into the past, note that the EU had effectively been lifting output since mid-2012. The decline now seen will not be shortlived: the fall in total milk output by major European producers will keep sliding. The volumes of milk in regions now shrinking (France and Germany) outweigh the effects of the expansive Dutch and Irish producers. So the declines will deepen. Cow culling has picked up as producers face unsustainable milk prices. And the European Commission is going to make it more interesting for farmers. In the last quarter of 2016, producers will get paid €0.14/L to reduce output. While that won’t work for everyone, it will make sense for some to either send a few more cows to the chopper, or to hold back on the grain lever. There’s an irony here. The strategy of the commission has been to take their farmers further into market reality by removing quotas, removing export subsidies and increasing the barriers to get-
ting access CAP payments. But within 15 months of removing the cap on production the commission has resorted to a notorious old European favourite -- paying farmers to cut production, as in the good old days. More importantly, with Europe’s production now in decline, total milk output by major exporters (EU, US, NZ, Australia and Argentina) has also dipped into decline, enough perhaps to explain why more buyers showed at the latest GDT event, where whole milk powder prices rose nearly 10%. But while the slowdown is encouraging, it must long persist to make a material difference to the payslips of Australian dairy farmers. Figure 1 shows the rolling 12-month total output by major exporters compared to dairy product prices. It shows the experience in 2012 and 2013, when it took an extended flattening and then a fall in total supply to help spur dairy prices – helped by panic buying by Chinese buyers fearing an extended global shortage. So in 2016 the global milk supply worm has only just steadied. The season ahead in New Zealand plays a big part from here on. While Europe’s milk output will keep falling by our reckoning, a global slowdown will be hastened if NZ output shrinks, as expected by Fonterra and Australian processors. The supply side story is the beginning of the fix; demand has to reignite as well. Figure 2 shows a more complete story of the drivers of product and therefore milk prices. This shows the change in the overall market balance – import demand versus available supply of product from exporters. That takes account of households in the EU, US and Australia consuming most of the milk output in each of those countries, leaving only a portion for export. Product prices are sensitive to changes in that overall balance. • Steve Spencer is a director of the Australian food consultancy firm Fresh Agenda.
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DAIRY NEWS AUGUST 16, 2016
24 // MANAGEMENT
Could your cows eat less? LESS IS more: the New
Zealand dairy industry is finding out if that’s true. Researchers on a DairyNZ farm near Hawera are studying a small section of the nation’s cows to track down which ones eat the least while maintaining good performance in milk production. Their work could be a big win for the country’s farmers, perhaps returning many millions of dollars each year to the industry. DairyNZ, LIC, CRV Ambreed and AgResearch are working jointly to find out whether this feed conversion efficiency -residual feed intake (RFI) -- is in the genes and could become a breeding value for the national dairy herd. The project is part of the Transforming the Dairy Value Chain (TDVC) Primary Growth
Partnership programme, a seven-year, $170 million effort led by DairyNZ, Fonterra and the Ministry of Primary Industries. It is aimed at enabling the creation of new dairy products, increasing onfarm productivity, reducing environmental impacts and improving agricultural education. Jeremy Bryant, manager of New Zealand Animal Evaluation Ltd, says the RFI work could return $5 million to $10m to the industry each year. In the trial, calves are on a consistent diet of lucerne cubes, says DairyNZ scientist Kevin Macdonald. “When the calf puts their head into the feed bin the ear tag is electronically recorded by a reader,” he says. “The bin sits on load cells to measure how much the calf is eating and
how long it takes to eat it.” Researchers measure the weight of the animals and take blood as part of identifying different genetic markers. “We are looking for phenotypic markers in the blood samples,” says Macdonald. They are also monitoring the heat of the animals using thermal images. “Overseas studies have found that animals that are less feed efficient lose more heat from some parts of their bodies.” He says previous research revealed some animals are greedier than others. “The most efficient calf ate 10% less than the average cow in the group and the least efficient ate 10% more – that’s about a 20% difference between the two extremes,” he
DairyNZ scientist Kevin Macdonald.
says. “This would be worth $10 million per year across the industry as a whole.” Previous work has been done with heifer calves (6-9 months of age), whereas this work
is being done with heifers and bulls from the same sires. This is aimed at trying to identify if the trait is an inheritable one. Researchers are analysing the data and hope to know
more by the end of the year. “If we found that information from the blood tests or thermal images is useful in predicting the RFI of
an animal, then these measures could be used alongside feed intake versus performance testing to create more accurate breeding values,” says Macdonald.
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DAIRY NEWS AUGUST 16, 2016
MANAGEMENT // 25
Canterbury cows, farms get off lightly in snow NIGEL MALTHUS
WHILE SOME of the central North Island regions struggle with deep snow and fallen power lines, Canterbury dairy farmers have successfully weathered the big cold snap moving up the country in the middle of the calving season. Apart from its high country, Canterbury got only a relatively light dusting of snow. North Canterbury Federated Farmers dairy chairman Michael Woodward says the cold snap was short and sharp and farmers had plenty of warning. Those doing extra pick-ups to get calves into sheds promptly
had no real problems. And it helped that the cows were generally “in good nick” after a good winter, Woodward says. Mid-Canterbury (south of the Rakaia) dairy chairman Nathan Currie says the region got off lightly, the snow “melting so fast we were able to dodge a bullet, really”. “The biggest problem we’re having now is cowsheds freezing up so it’s taking a bit longer to get milking done. So there’s a bit of frustration there. But as far as the herds, cows and calves go, we’ve been fortunate we didn’t end up with too much snow.” With temperatures still very low, calves had to be brought into sheds
NZ honey bee numbers rising NEW ZEALAND’S honey bee population is growing, not declining, as reported recently, says Apiculture New Zealand. The industry body was responding to comments by Lincoln University that imply honey bees are under threat in NZ. The university says NZ agriculture stands to lose $295-$728 million each year if our local honeybee population continues its “current decline”. Not so, says ApiNZ chief executive Daniel Paul. “I’m pleased to say hive numbers are growing rapidly. We are nearing 700,000 hives, up from 300,000 hives 15 years ago. Hive numbers grew by nearly 70,000 in the 2014-2015 year alone. “There are close to 7000 beekeepers in NZ and that number continues to grow each year as well.” The honey bee does face challenges from the varroa mite and other endemic viruses and bacteria, but beekeepers have managed these successfully for many years. Overseas research continues on how to address the problem of resistance to the treatments for varroa. Says Paul, “We are always vigilant and concerned about a future biosecurity breach and the impact new pests and diseases would have on the industry, but I think it’s misleading to suggest that honey bees in NZ are under some kind of near-term threat as Lincoln seems to be suggesting. “That sends entirely the wrong message to our agriculture and horticulture partners who rely on bees for crop pollination.” He says a recent bee-loss nationwide survey showed that annual hive losses in NZ are only about 10% vs 17%and higher elsewhere. NZ’s bee population contributes about $5 billion to our economy annually and they support about one third of everything we eat. NZ’s manuka honey is highly valued worldwide.
quickly, but farmers were able to get around their paddocks and Currie had not heard of any problems. “If we’d had two feet of snow... different story altogether.” Burnham farmers
Peter and Adele King were already half-way through calving, with about 300 calves so far of an expected 650. They had recorded a couple of stillbirths, but no weatherrelated losses.
Their biggest problem was persistent light showers over many days keeping paddocks wet, so the cows cut up pasture more than they would have during one large rainfall.
Dairy farmers Adele and Peter King feed a pen of four-day-old bull calves on their farm near Burnham.
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DAIRY NEWS AUGUST 16, 2016
Innovation in formulation links the range.
26 // MANAGEMENT
English, maths and cities key to a smarter industry
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DAIRY WORKERS will need to be better at English and numbers to enable the industry to innovate and achieve, say experts. And it must work harder to recruit people from the cities. Research done for the Ministry for Primary Industries, DairyNZ and Beef + Lamb NZ shows the dairy industry needing 2300 more people by 2025, extra to the 23,400 who will ‘naturally’ leave the industry. Many new roles will not be in traditional areas. Ten years ago four out of five dairying jobs were onfarm, says New Zealand Young Farmers (NZYF) chief executive Terry Copeland. By 2025 a third of roles will not be tied to the land; instead support-service jobs are tipped to make up 34% of the industry. The industry will have to promote itself more to city people, and lift literacy and numeracy to create a more qualified workforce, Copeland says. “As dairy farmers take on more complex business owner/manager roles, they must stay competitive by getting specialist advice and services,” he says. Those services will include precision agriculture, robotics, environmental science, genetic selection, business modelling and financial management. NZYF and other groups are working to grow the workforce, many funded by the Transforming the Dairy Value Chain (TDVC) Primary Growth Partnership scheme, a seven-year, $170 million effort led by DairyNZ, Fonterra, MPI and others. The aims are to foster the creation of new dairy products, increase farm productivity, reduce environmental impacts and improve farming education. “We need to win the hearts and minds of school students to make
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able,” says Somerville. PICA makes presentations to teachers, publishes a scholarships directory and a careers poster and coordinates industry stands at events. Its GrowingNZ brand promotes the diverse careers offered by primary industries. Somerville says people are often surprised by the range and sophistication of jobs in the sector. MPI director-general Martyn Dunne supports the cross-industry efforts to boost capability and grow the industry’s workforce. “People are our most important asset in ensuring the future success of our dairy industry and our wider primary industries,” says Dunne. “There’s opportunity to attract people to dairying by building awareness and understanding about the diverse and interesting nature of jobs and cutting-edge work nationwide. “The Primary Growth Partnership is one way MPI is enabling this to happen, supported by, for example, MPI’s Primary Industry Champions initiative.”
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them aware of the benefits, career opportunities and subject options in the primary industries,” says Copeland. Cities will become important places for recruiting dairy industry workers, he says. “There will not be enough farm workers available in the traditional rural pool because of the changing location of secondary students -- 36% in Auckland and 30% in rural NZ, with the gap forecast to widen.” The future dairy marketplace will be more consumer-driven and will rely on new technology, better nutrient management, animal welfare and environmental sustainability. Training must improve for NZ to produce the world’s best milk-derived products, Copeland says. “We simply won’t cope with the current low levels of numeracy and literacy amongst onfarm staff.” The schemes AgriKids and TeenAg are enabling NZYF to engage with primary school students, showing them how they can progress through high school and beyond into the industry. “Half of the 90 NZYF members of the Lincoln University Young Farmers club were TeenAg members from around NZ, including Iona College, Hawke’s Bay, and Northland College.” TDVC helped set up the Primary Industry Capability Alliance (PICA), with DairyNZ and BLNZ. It now has 10 member groups. PICA chief executive Andy Somerville says primary production businesses are now larger and more complex, needing expertise in science, engineering, farm systems, business governance, resource management and IT. That means a lot of new roles beyond the farmgate. “They need to innovate and add value to their products and meet the increasing challenge to be sustain-
are crucial to safe production of milk and dairy products, says Shoof International. Without milking gloves, microscopic pathogens which cause mastitis can spread through herds from milkers’ hands, the company says. Shoof, which says it sold the first milking gloves to Kiwi farmers in 1995, declared July
25-31 ‘milking glove appreciation week’, trying to counter resistance to wearing them. On NZ’s 12,000 farms, with five million dairy cows, gloves are worn by only 80% of milkers, claims Shoof chief Geoff Laurent. But industry milking guidelines say gloves are essential and Shoof wants 100% compliance. So it is selling gloves online, delivered to farm gates.
“Each milker will go through about 1000 gloves a season,” Laurent says. “Used carefully one pair will last a full milking. “Milking gloves also protect animal welfare and help minimise risk in our food-chain safety. Gloves help prevent bugs from being transferred from cow to cow in small cracks and fissures in a milker’s hands.” Shoof recommends
nitrile gloves because they are non-allergenic and don’t cause skin irritation or rashes. Nitrile also adopts the shape of the hand so they’re comfortable to wear, are three times more resistant to punctures and better resist chemicals than latex. www.milkinggloves. com @dairy_news facebook.com/dairynews
DAIRY NEWS AUGUST 16, 2016
ANIMAL HEALTH // 27
Down cows no longer a fact of life DEATH, TAXES and down cows need not all be certainties in a dairy farmer’s life, says a nutritionist working with a New Zealand animal health company. Dr Joe McGrath, technical manager for nutrition company DSM, has been working with Sollus NZ. He urges farmers to work harder to strike out down cows, rather than “accept down cows like it is just part of dairying life. It does not have to be that way”. McGrath lectures in ruminant nutrition at The University of New England, NSW, and has studied mineral utilisation and deposition in cattle. He says unfortunately the acceptance of down cows is reinforced by their prevalence during spring – so common they have become a self-fulfilling prophecy. “I challenge anyone to drive the back roads of Waikato in July and not see at least one down or dead.” DairyNZ reported about 2% of NZ cows go down during calving, McGrath says. “That is 50,000 cows in Bay of Plenty and Waikato alone... the tip of the iceberg. For every one that goes down there are at least 10 times more sub-clinically suffering the same problem. In fact DairyNZ suggests 33% of cows in NZ are affected, resulting in further problems with calving, milk production, fertility and mastitis through the season.” Not to mention cost, the impact of milk fever (hypocalcaemia) adds up to losses the industry can ill afford. “DairyNZ says in 2012 milk fever will cost farmers about $400 million for treatments resulting from calcium deficiency; however these are treatment costs, not prevention. Often the cow is already damaged.” The $400m includes calcium treatments for down cows and fertility treatments for retained membranes, non-cycling cows and treating cows
with calving difficulties – all the ‘usual’ conditions and costs farmers now accept as normal at calving time.” Also, poor cow health during calving is estimated to cost $1 billion dollars per year, McGrath says. “And anyone who manages a herd will [recognise] time lost in managing these down cows at a busy, stressful time of year.” But he estimates an effective prevention strategy using low cost calcium based supplements would be only $8 a head. “By supplementing large amounts of magnesium prior to calving – by dusting, drenching, water dosing and using anionic saltbased springer diets – we enable the cow to get her required calcium from her skeleton; [but this at calving], though well practised and often successful, is likely to lead to calcium deficiencies later in life.” He says this method of keeping cows healthy at calving is antiquated and risky, relying on the cow having a healthy skeleton prior to calving and requiring it to be replaced during the following lactation. But this ‘mining’ of the skeleton is why the incidence of milk fever increases as cows get older, and is worse in better producing cows. McGrath has been working with Sollus NZ to develop nutritional systems to help address calcium and phosphorus deficiency issues in NZ cows. “We know now how to incorporate calcium into pre-calving diets, which leads to healthier cows now and in their future”. But he cautions the utilisation of calcium within the cow’s diet preand post-calving should be part of a nutritional programme because other nutritional imbalances in grass diets need to be fixed first. McGrath says in the lead-up to calving farmers tend towards ‘calving checklists’ containing post
down-cow treatments. Instead, he says, the animal health industry in NZ “should be focusing on prevention, not costly cures, as the damage is largely done even if a cow does get up”.
“The farmers we have worked with don’t fear calving; they often get to the point where a down cow is unusual, not expected as normal.” @dairy_news facebook.com/dairynews
Dr Joe McGrath
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DAIRY NEWS AUGUST 16, 2016
28 // ANIMAL HEALTH
Better microbes, fitter calves WORK BY scientists at AgResearch is providing a better understanding of the complexities of the digestive tract of ruminants and could help lead to more productive, efficient and healthy animals.
Researchers Eric Altermann (left), Adrian Cookson and Sinead Leahy.
Ruminants have evolved an efficient digestive system which relies on a complex microbial community to break down and ferment plant fibre and provide products and nutrients for growth.
As you focus on increasing your return per cow...
EVERY DOLLAR YOU SPEND NEEDS TO WORK HARDER.
Freeing your herd from parasites for longer can increase milk production, shorten conception intervals in heifers, and improve the health and liveweight of your stock.1, 2 The returns add up with Cydectin.
COST TO TREAT 420 COW HERD:
$
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EXTRA REVENUE PER COW:
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ZOE1304 ZOE 1304
which can cause diarrheal disease (scouring) during their first months of life which can severely affect growth. The idea that Bifidobacterium could be used to benefit young livestock during a time when the risks of morbidity and mortality are high is attractive.” The research showed that Bifidobacterium can be easily isolated from young calves and three species of Bifidobacterium had their genomes sequenced to get a clearer idea of what they are and what they do in the GIT.
“Current rearing strategies for dairy and dairy-beef calves typically disrupt ‘mother nature’s’ coordinated functional co-development of the microbial community and the calf because it is removed from its mother at a very early age”.
POTENTIAL RETURN ON INVESTMENT:
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Calculate your R.O.I when using Cydectin Pour-On at www.cydectin.co.nz DISCLAIMER: The extra revenue calculated is based on a pay-out value of $4.25 and 4.5kg milk solids per cow increase when treated four days after calving1. The cost of treatment is based on a 500kg cow and retail price of $1,799 for a 15L + 2L Bonus. Actual results may vary. Zoetis New Zealand Limited. Tel: 0800 650 277; www.zoetis.co.nz. CYDECTIN is a registered trademark of Zoetis Inc. or its subsidiaries. ACVM No. A6203. 1. A.W. Murphy; The effect of treatment with Moxidectin, a long-acting endectocide, on milk production in lactating dairy cows. World Buiatrics Congress Sydney 1998. 2. The Impact of Eprinomectin Treatment on Dairy Cattle Reproductive Performance. McPherson et al Proc. DCV NZVA, 2000.
ZOE 1304 Cydectin Spring 2016 280x187_ƒ.indd 1
However, Dr Sinead Leahy from the rumen microbiology team at Grasslands, Palmerston North, says little is still known about how the complex relationship between the microbes and the gastro-intestinal tract (GIT) in young ruminants develops. The result of the latest step in this work is now published in Scientific Reports. The paper looked at a subset of microbes – Bifidobacterium, a microbe which dominates the GIT when a neonate is fed a milk diet.
7/6/16 11:58 AM
These microbes are considered highly beneficial and the paper looked in detail at how they may be adapting and interacting with the calf GIT. “Current rearing strategies for dairy and dairybeef calves typically disrupt ‘mother nature’s’ coordinated functional codevelopment of the microbial community and the calf because it is removed from its mother at a very early age”, Leahy says. “Of course, it’s not possible to keep the calves with the mum under a dairying system, but it’s certainly different from what is recommended for humans, from a nutritional point of view.” Researchers were interested in seeing what the impact on microbes would be, under those calf rearing systems, starting with Bifidobacterium. “In humans, these microbes have a versatile and important role in infant gut development. They do a lot of useful things, including preventing the establishment of pathogens and production of beneficial metabolic substrates,” Leahy says. “Like their human counterparts, young ruminants are often susceptible to microbial pathogens
At the US Department of Energy Joint Genome Institute the genomes were sequenced through the Hungate1000 project, a New Zealand-led initiative to generate a reference set of rumen microbial genome sequences. Using the genomes the researchers were able to predict the genetic strategies these microbes use for carbohydrate metabolism and host colonisation and persistence. For the first time, this provides insight into how these important microbes have adapted to the calf GIT. Leahy says this raises more questions. “In instances where young animals can’t be fed their mothers’ milk is there a way we can replenish their digestive tract with these beneficial microbes? For example could they be used with calf replacement formulas?” The long-term purpose of the research is to identify beneficial microbes important as a neonate for protection against disease and important for normal metabolic and immune development, normal maturation of which are likely to be key to the long-term productivity of the animal.
DAIRY NEWS AUGUST 16, 2016
ANIMAL HEALTH // 29
THIS SHOULD SETTLE THINGS once and for all
Colostrum is key for healthy calves.
Profit spin-off from calving demands wise spending FARMERS MUST keep an eye on
the future, as the decisions made today will have a spin-off this year and for many more, says a Ravensdown animal health advisor. “Pre-weaning nutrition for young calves is where foresight can literally pay off,” Paul McKee says. “Taking the time to ensure young stock are reared well is particularly important for dairy farmers, as the future productivity of these heifers is closely related to their weight at first calving.” Research carried out in New Zealand shows heifers produced an additional 0.12 kgMS in their first lactation for each additional kilogram of bodyweight at first calving. Australian researchers reported an increase of 8.7, 4.1 and 4.4L for every kilogram increase in live-weight of heifers at first calving and by the third lactation it had increased to 23 and 21L in two of the studies. A recent review in Journal of Dairy Science reported on an investigation of the effects of pre-weaned calf nutrition and growth on first lactation. The authors found a synergistic relationship between pre-weaning liquid and starter dry matter intake and future milk, fat and protein production. They also reported a positive relationship between first-lactation performance and pre-weaning average daily weight gain. The review says, “Taking the time to ensure that the calf is well cared for between birth and weaning is vital if she is to play a productive role in the herd. Ensuring sufficient intake of high quality colostrum in the first few hours of life is essential as colostrum contains vital antibodies the calf needs to absorb to protect it from disease. The ability of the calf to absorb these antibodies declines rapidly in
the first 24 hours after birth.” Colostrum is a rich source of readily digestible nutrients including fats and sugars that provide a critical source of energy for the calf in the hours following birth. Additionally, colostrum contains many proteins that provide the amino acids essential for the development of muscle tissue, vitamins and minerals, which play an essential role in many physiological processes including immune function, growth and development. “Both colostrum and subsequent milk or Ravensdown calf milk replacer can be a predominant source of nutrients young pre-weaned calves require until their rumen is functioning and able to digest solid feeds. Stimulating the early development of the rumen is an important factor in minimising stress at weaning, ensuring calves do not suffer a growth check when milk is removed, and supporting weight gain before and after weaning.” McKee says that encouraging the consumption of a high quality grain based feed, such as those in the RavCalf range, from four days of age, supports the development of the rumen papillae, responsible for absorbing the volatile fatty acids, and helps to maximise the surface area available for absorption of volatile fatty acids in the mature ruminant that is predominantly fed pasture. “Products in the RavCalf range also contains a coccidiostat, which helps protect calves against the debilitating disease coccidiosis. Severely infected calves will show symptoms such as bloody and/or watery diarrhoea, depression, dehydration and weight loss. Even if clinical signs are not present, the destruction of the gut lining resulting from the infections has a negative effect on calf performance, with a reduction in feed
Paul McKee, Ravensdown
efficiency, where calves continue to consume feed but just don’t grow at the expected rate, or eat less due to feeling unwell. Using RavCalf will help to control coccidiosis infection and ensure calves remain protected until they have the opportunity to develop their own immunity.” Adequate water intake is also essential for rumen development and growth, so it is essential that clean fresh water is always available for calves. After weaning, growth rates can be maintained while calves transition to a grass based diet by continued feeding of a nutrient dense finishing feed such as the RavCalf16 or RavCalf14 Grower and Finisher feeds. Encouraging good growth and development through the first two years of the heifer’s life will help to ensure that she gets in calf by 15 months of age, optimises milk production in her first lactation and is likely to survive longer in the herd. “If you are under pressure to reduce the cost of rearing calves this season remember that calf feed is only a small component of the cost of rearing a heifer to first calving, estimated at $1400. In other words, the investment you make in your calves in the first few months of their lives will pay dividends in years to come.”
RUMENSIN MAX Showed no significant settling or layering after 3 12 hours
GENERIC. A Showed significant fallout, with approx 11%4 of the active ingredient as bottom sediment
GENERIC. B Showed significant fallout, with approx 13%5 of the active ingredient as bottom sediment
When it comes to suspendibility, independent tests have shown that Rumensin Max is the Gold Standard. After 12 hours in a solution tank Rumensin Max had no significant settling compared with two generic brands which had up to 13%5 of the active ingredient as bottom sediment. Rumensin Max really is the Gold Standard in suspendibility, giving accurate dosing and a proven benefit package. Rumensin has been a trusted partner to New Zealand dairy farmers for over 20 years, no argument. Talk to your veterinarian or animal health stockist about a Rumensin programme to suit your system.
B L O AT • M I L K P R O D U C T I O N • K E T O S I S 1 2 COW CONDITION • FEED EFFICIENCY References: 1,2,3,4,5 Elanco data on file. Registered pursuant to the ACVM Act 1997, No’s A010731 © 2014 Elanco, a division of Eli Lilly and Company. Elanco, Rumensin and the diagonal colour bar are trade marks owned or licensed by Eli Lilly and Company. NZF RSettle 0714
DAIRY NEWS AUGUST 16, 2016
30 // MACHINERY & PRODUCTS
Red devils seen on Thailand farms MARK DANIEL markd@ruralnews.co.nz
JAPANESE TRACTOR maker Yanmar will
market a limited edition tractor, a joint effort with English Premier League football team Manchester United. Bearing the team’s logo, the 51hp EF514MU model will go on sale in Thailand. It will have a ‘premium’ red body, gold wheels and the all-important Manchester United logos on the hub caps and floor mats to distinguish the limited edition from the standard range. Fitted with the maker’s direct injection diesel engine, a transmission
with 9 forward and 9 reverse speeds and a 1.35 tonne rear hitch, the tractor will suit field work or market gardening. So frenzied are Thais about football that Yanmar set up its own team in 1957 and from 2012 it has been an Official Global Partner of Manchester United. The
limited edition tractors will help raise brand awareness through sports commu-
nication and share the passion and spirit of challenge football inspires in enthusiastic fans in the region. What next, Waikato farmers painting cows in Chiefs colours?
Terry Rennor works on the boundary fence.
Fired up, built to last
Yanmar’s limited edition tractor in Manchester United colours.
FARMING NEXT to a train track or a state highway is not without its challenges: stock wandering onto either, and fires sparked by vehicles, trains or their passengers. After one such fire south of Blenheim, on a property beside the train track, parallel to SH1, a local fencing contractor went straight for Waratah galvanised steel products to forestall all risks. Terry Renner erected the 3km, 1150mm high boundary fence using Waratah Jio Star and Jio MaxY posts at a
4:1 ratio, holding pre-fabricated wire and topped off with two strands of barbed wire. The posts were driven with a pneumatic hammer, Renner insisting the posts be positioned accurately before driving because “once they’re in, they’re in (mate) and almost impossible to shift”. He says the Jio clips make it surprisingly easy and fast to fix the wires to the posts. A pleasing result that will endure for many years. www.waratahfencing.co.nz
Let there be light
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A SIMPLE way to increase the performance of your vehicle’s headlights and make night driving safer comes from auto lighting company Narva. New here, the new Platinum Plus 130 globe out-shines traditional globes or bulbs – 130% more light than a typical standard globe in a car or commercial vehicle and 20% whiter light (3750°K). The longer beam is said to increase
visibility by 40m, and the whiter light can reduce driver eye fatigue and so improve safety. The performance gains are endorsed via ADR approval and are certified street legal. Power draw and heat displacement are no greater than in the older lamps, so the globes suit headlamps with polycarbonate lenses.
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DAIRY NEWS AUGUST 16, 2016
MACHINERY & PRODUCTS // 31
Good-value spreaders MARK DANIEL
THE LATEST fertiliser
or seed spreaders from Croplands look to offer great value for money to small agricultural or turf
growing operations. The model 150 trailed unit holds 140L, has a galvanised steel hopper, uses a ground wheel drive and sealed gearbox to power the spinner and agitator, and is supplied with a
clevis hitch for easy set-up behind a quad or LUV. Meanwhile the model 300 and 500 units have three point linkage mounting and hold 250 or 350L in their galvanised steel hoppers.
Drive is via a conventional PTO system, and the spreading disc has four vanes for setting in one of five positions to achieve three easily selectable spread patterns. www.croplands.com.au
Croplands 150 model trailed spreader.
Dairy Cooling Solutions A Division of Eurotec Limited
Chopped forage maize.
Forage specialist buys Shredlage ONE YEAR after a licensing deal with the US owner of
Shredlage maize harvesting treatment, forage specialist Claas has agreed to buy the company outright. The Shredlage system is based on chopping forage maize to a longer 26-30mm, then having rollers tear it in pieces longitudinally. This increases ruminal action, allowing the release of starch from all the plant components, with potential to increase milk yields and improve animal health. Claas director Hermann Lohbeck says “we are convinced Shredlage offers clear benefits to our customers, so by taking over this well-known brand we are able to add the finishing touches to our forage harvesting technologies”. Shedlage rollers will be manufactured at the Claas Padderborn factory in Germany. – Mark Daniel
Welger has all tied up
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.
Highly suitable for AMS (Robotic Farming Systems) with low milk flows – Packo Milk Tanks
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.
CONVENTIONAL BALERS have been around since
the 1940s and anyone with grey hair will remember – not always fondly – blistered hands and getting spiked by thistles during the manhandling of hundreds if not thousands of packages in the harvest season. The 1980s saw round balers come to the fore, because of their output and ability to be mechanically handled. However, manufacturers report that small square conventional units are still selling in New Zealand at the rate of about 25 machines per year. The Welger AP 730 shown on the Lely Fieldays site is a case in point: it has been sold largely unchanged over the years –100,000 units. After the drive to the flywheel and main gearbox, the machine uses a shaft drive layout to drive the packer, knotter and pick up, which ensures accurate synchronisation of each, and the elimination of any chains or belts on the machine. To help achieve high bale densities, a heavy duty chassis and longer bale chamber combine to produce bales of 360 x 490mm section and from 0.50 to 1.20m long, with clearing from the swath being taken care of by a 1.74m wide pickup. The packer mechanism is protected from overload by packers. – Mark Daniel www.lely.co.nz
no risk of freezing the milk.
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.
Improved Milk quality through Snap Chilling = potentially a higher return PIB 25-160
adding PROFITS to the farm.
For 30yrs Eurotec has been supplying the NZ Refrigeration Industry with leading Global Brands. The only NZ supplier of this technology providing nationwide coverage and After Sales Support with branches in Auckland, Wellington and Christchurch with over 30 Approved Refrigeration Installers throughout the country from Invercargill to Whangarei. Check out the DCS website www.dairycoolingsolutions.nz or talk to your refrigeration contractor.
PIB 230 - 370
Find us on Facebook too, www.facebook.com/DairyCoolingSolutions
Dairy Cooling Solutions Tradition meets Technology
www.dairycoolingsolutions.nz
DAIRY NEWS AUGUST 16, 2016
32 // MACHINERY & PRODUCTS
Fastrac turns 25, turns more heads MARK DANIEL markd@ruralnews.co.nz
EXPERTS RECKON a tractor typically spends at least 60% of its time on haulage work, so little surprise the early innovators developed tractors with a high speed option. German giant Mercedes Benz developed the Unimog and its close cousin the MB Trac, and in the UK the Trantor gained a niche following, but none of these ‘tractors’ were much good for draught work in paddocks. Then came the JCB
Fastrac with speeds of up to 75km/h, all-round suspension, load platform and in-field performance that took this type of machine into a new era. Said to be the idea of Anthony Bamford, from a ‘vision’ while on holiday, prototypes were secretly built in the basement at JCB’s transmission factory in Wrexham, North Wales. After proving the concept with select farmers and contractors, the 12 million pound Project P120 went public at the Royal Smithfield Show, Earls Court, in December 1990.
Early machines had 120 or 140hp engines, then came upgrades to twostage powershift, then 150 and 170hp units in 1993. In 1995 a smaller, lighter tractor arrived – the 1115 – restricted to 50km/h so as to run on standard tyres, to be followed by the 135hp model 1135. Fast-forward to 1998, when a long wheelbase Fastrac, the 148hp, 2150 model, arrived with engine upgrades, a new auto-shift gearbox with 54 forward, 18 reverse speeds and three stage power-shift; this found favour with
operators of high capacity sprayers and fertiliser demount rigs. In 2005 JCB, wanting to play with the ‘big boys’, launched the 8250 with 250hp and a Fendtsourced constantly variable transmission. Then in 2008 the new 7000 series added appeared with JCB’s own semi-powershift setup, the P-Tronic, with 24 forward and 9 reverse speeds. In 2013, the current 4000 series was launched, the most advanced Fastrac yet, with engines from 175 to 235hp, CVT transmission, self-levelling
The JCB Fastrac has speeds up to 75km/h.
front and rear suspension, multi-mode steering and a centrally mounted cabin. Farmers and contrac-
tors consider the Fastrac in a Vegemite sort-of way – love it or hate it; but with high speeds, load carry-
ing platforms and draught capability, the Fastrac has changed the way we look at tractors.
World’s largest robotic farm
FEED SYSTEMS SINCE 1962
A DAIRY farm in Chile milking 6500 cows looks set
to become the world’s largest robotic dairy farm, says the equipment supplier, De Laval VMS. The farm recently ordered 64 more robots. Fundo El Resquillo, 500km south of Santiago, owned by Agricola Ancali, has run 16 robots since late 2014. The first eight milked 500 cows, a further eight milked 420 more cows. The cows were found to yield 45.2L daily via the robot – 10% more than via the farm’s four rotary platforms. The farm owners saw scope for slashing labour and stress in the herds. About 4500 cows will be switched from conventional milking to robotics using the 64 VMS units, all aimed at start-up by early 2017. One rotary platform will be retained for fresh calvers and cows needing any special attention.
Supreme quality stainless steel feed trays / Exceptional back-up support / Easy to use and maintain First class installations / Robust construction / Skiold Disc Mills Grain Holding Silos / Utility Augers / Mobile Auger
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DAIRY NEWS AUGUST 16, 2016
TRACTORS & MACHINERY // 33
Sure to excite redand-silver crowd MARK DANIEL markd@ruralnews.co.nz
THE 80-100HP tractor
remains the workhorse in New Zealand, especially on dairy farms, and similarly in world markets. Hence designers at Massey Ferguson starting with a clean sheet and $350 million to design the Global Series which took all the best points of utility tractors and updated them
for the 21st century. The results of this project, seen in the 4700 series in 2014 and awaited in the imminent arrival of a brace of new 5700 models, will get the red and silver tractor fans excited. The new 5709 and 5710 offer 92 and 102hp from 4-cyl, turbo-charged AgcoPower engines displacing 4.4L litres and developing 410Nm torque at 1500rpm.
Deutz Fahr’s proposed plant.
Made in Germany plain to see RECENT RELEASES of the Deutz Fahr 9 series and high-power T4 6 ranges show this European manufacturer intends to carve a slice of the high tech tractor sector and to push a ‘made in Germany’ message. This new product will soon be rolling out of the new Euro 90 million DeutzFahr Land tractor plant being built on at Lauingen, Bavaria. And there’s more to come there, on the left bank of the River Danube -- a facility called the Deutz Fahr Arena. This high-tech visitor centre, being
built on an old factory site, will have 3800sq.m of product exhibition hall, museum, on-site catering, a cinema, training rooms and the obligatory souvenir shop. The two storey layout will accommodate up to 10,000 visitors each year, and training for up to 3000 importer and dealer staff. An extensive test track will allow customers or staff to drive the machines in lifelike conditions. Construction began in May and is expected to finish by March 2017. www.deutz-fahr.com
PRODUCTION ORIENTATED FARMERS... Are you suffering from:
• Surface ponding of pastures? • Hay & silage being tramped into pasture and wasted?
Pugged paddocks can reduce pasture growth up to 60% DON’T PUT GOOD FERTILISER ON COMPACTED SOIL WHICH CAN’T ABSORB IT If your soil can’t support 15cm root growth and good worm population check for compaction. You could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover?
AERATORS
HEAVY DUTY AUTO RESET
The engines are mated to a 12 x 12 transmission with six speeds, two ranges and a wet clutch/ power shuttle operated by a lever under the left side of the steering wheel. As on the larger series, this lever controls forward/ reverse direction changes and includes controls for aggressiveness of drive take-up and a de-clutching action for making speed changes, all without declutching. Levers on either side of the seat control speeds and hi-lo ranges, acting directly on the gearbox selector rails for simple, easy and reliable operation. 4WD front axles have 55 degrees of steering angle for tight turns and a 100% locking differential ensures positive traction in tough conditions. The rubber is ‘meaty’ radial tyres of 540-65R34 at the rear and 440-65
Massey Ferguson 4700 Series released in 2014.
R24 at the front. At the business end of the tractor a heavy-duty rear axle can lift 3300kg, and there is an open centre hydraulic system with a flow of 98L/min via twin gear pumps, the first powering the three point linkage and two rear remote valves, the second for power steering, 4WD engagement, diff-lock and PTO. A six-spline PTO is fitted with 540 or 540E speeds. NZ spec tractors are offered in Essential Specification which means a semi-suspended, flat operator platform, levers on either side of the driver’s seat for speed and range changes, pendant pedals suspended from the underside of the centre console, and hydraulic wet brakes. www.masseyferguson. com.au
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DAIRY NEWS AUGUST 16, 2016
34 // TRACTORS & MACHINERY
Biggest JD ever prompts long look NOT LONG ago everyone thought 200hp was a big tractor, but for a
decade we’ve seen growth in demand for dual-purpose medium-weight
tractors with high powerto-weight ratios, able to play hard in the paddock
The latest mega offer from John Deere.
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Performance of a large tractor with the size of a small tractor for all round versatility – perfect for dairy units, mixed farms, arable enterprises and contracting businesses
Excellent implement functionality with 3 valves as standard and a high lift capacity from a dedicated 110 litres per minute Closed Centre hydraulic pump – enough for any job
CONTACT YOUR LOCAL MF DEALER FOR A REAL DEAL MASSEYFERGUSON.CO.NZ | FREECALL 0800 825 872 * Offer ends 30 September 2016, while stocks last. Loader offer refers to MF6612 tractors with MF951 or MF956 Standard loader. Consult your local Massey Ferguson dealer for full terms and conditions.
MASSEY FERGUSON , MF , the triple-triangle logo is a worldwide brand of AGCO. © 2016 ®
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or clock up the k’s on the road The latest offering from John Deere is its largest row-crop tractor yet – the 8400R, on sale from August 1. It has 400 engine hp – 313hp at the PTO shaft – provided by a Tier 4 Final set-up using SCR, DOC and DPF for emissions clean-up; the latter two features are designed to last for the life of the tractor. The 9.0L PSS engine has EGR and twin-turbos to deliver high torque and instant engine response. Intelligent Power Management (IPM) can provide a 35hp boost in difficult PTO applications over 0.5km/h forward speed, and in transport work at 23-28km/h. A variable-speed cooling fan (VariCool) keeps temperatures in check, Automatic Engine Monitoring looks after temperature, oil pressure in the engine and transmission, and autoshutdown if any problems occur; a Field Cruise System allows a constant engine speed at 11002100rpm and optimum fuel efficiency in changing conditions. On the transmission front, the latest e23 powershift has 23 forward and 11 reverse speeds, 40 or 50km/h options and reduced engine revs at speeds to 23km/h to save fuel at speed on roads. Included in the package is an Autoclutch function that cuts the drive when the brake pedal is applied, with drive taken up upon pedal release, and the ability to move to a pre-set forward/engine speed as set in the Field Cruise system. Up front a standard or ILS suspended axle is the choice, with the latter a must-have for 50km/h; automated 4WD engage/ disengage is controlled by speed, braking or steering
angle. Active Command Steering reduces steering effort in the field or on the road, dependent on forward speed. The Cat4N linkage uses twin external 115mm lift cylinders to hoist 9100kg at the ball ends, and can work with the optional, Laforge sourced front linkage system which can lift a respectable 5.2 tonnes. Hydraulic power sees a closed centre, poweron-demand set-up with a standard output of 227L/ min, and up to six rear remotes, or the option to upgrade to a 321L/min spec, sufficient for the largest cultivators or airseeders. As would be expected, options available include power beyond, dual motor returns and hydraulic trailer brakes. PTO for large rotary hoes or popular folding power harrows sees a standard 1.75 inch shaft with 20 splines and 1000rpm speed, with adjustable start-up modulation to protect tractor and implement drive lines. John Deere shows its dominance in cabins by knowing how to keep operators happy. The CommandView 3 cabin has industry standards: CommandArm console, active air suspension seat, climate control and laminated glass, adding up to a great place to spend a long working day; and 360 degree lighting should bring ‘day to night’. Weighing 15 tonnes in the flesh, this new addition to the range should prove popular with large scale farmers or contractors who run mixed operations and don’t need the outright tractive force of an articulated equal 4WD layout. www.deere.com.au – Mark Daniel @dairy_news facebook.com/dairynews
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PLUS P SED AS
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NPE FREE Hibitane 2 Plus is a NPE free chlorhexidine formula with high levels of emollient. It goes further and meets ‘EN 1656’ testing standards. Call your local Ecolab Territory Manager or phone 0508 737 733 for more information. Packs available: 5, 20, 100, 1,000 litre ACVM Registration No: A11303
Are you ready for calving? At PGG Wrightson, we’ll help you with the right range of products, competitive prices and expert advice. Talk to the team about your calving requirements today.
25% off Purchase 2, get
33% off Purchase 3, get
0% off 5 t e g , 4 e s a h c r Pu
Power Whey Calf Milk Replacer 20 kg
Reliance Calf Milk Replacer 20 kg
Reliance Calf Milk Finisher 20 kg
High quality, easily digested ingredients combined with prebiotic, probiotic and organic acids to help reduce the incidence of scours and encourage hard feed intake. Formulated specifically for calves from day five.
An all milk powder blend produced using a range of high quality milk powders. Incorporates a specialised blend of vitamins, minerals and Bovatec® for optimum health and growth in calves. Formulated to meet the needs of young calves after the initial colostrum period.
Made from a blend of whole milk powder, skim milk powder, whey powder, vegetable fats and soy protein. Contains coccidiostat, Bovatec® and a range of minerals, trace elements and vitamins. Designed to be fed to calves from day five onwards.
NZAgbiz Supacalf™ or Ancalf™ Calf Milk Replacer with Deccox 20 kg
SealesWinslow Calf Pro1® 20% Muesli 25 kg
SealesWinslow Calf Pro1® 20% and Calf Grow® 16% Pellets 25 kg
Premium curding Calf Milk Replacer. Contains Actigen® for gut health and Deccox™ to help prevent coccidiosis. Designed to be fed to calves from day four onwards.
$
Applies to McKee Plastics Pen Meal Trough 20 L, Fence Mounted Hay and Grain Feeder Mini, Water Trough 12 L, 5 Teat Calf Feeder and 6 Teat Compartment feeders. Limited to maximum of four stated items. Discount is off the PGG Wrightson standard retail price. Must be purchased in one transaction.
$
5
$
Ideal starter feed. Highly palatable to encourage early feed intake and promote rumen development.
26
Promotes optimum intake and rumen development. Contains coccidiostat, minerals and additives.
10%
OVER
5%
AHD Colostrum Preserver 20 L
Calf Scour Paste 30 g
Calf Electrolyte 3.6 kg
Normally $125
Normally $29.99
Normally $74.99
2699
99
$
$
30
Nil meat withholding
OVER
25
6999
$
OVER
25
%
OVER
40%
%
Shoof Obstetric Lubricant 5L
Virkon® S 2.5 kg
MetaBoost 4 in 1 Injection 500 ml Pillow
MetaBoost CBG Injection 500 ml Pillow
Pro-Cal Oral 500 ml
Normally $34.99
Normally $199
Normally $18.99 ea
Normally $17.99 ea
Normally $21.99 ea
2999
$
169
$
$
254
$
234
$
7499
Terms and Conditions: Offers and prices valid from 1 July 2016 to 30 September 2016, or while stocks last. Prices include GST and are subject to change. Some products may not be available in all stores but may be ordered on request. Prices do not include delivery, delivery costs are additional. Images are for illustrative purposes only.
Freephone 0800 10 22 76
www.pggwrightson.co.nz
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