Dairy News 27 August 2013

Co-ops deal with new nitrate contaminations. Page 3 advocating for farmers DairyNZ’s new policy chief Page 27

classic cars up for grabs Enter and win! Page 41 august 27, 2013 Issue 297 // www.dairynews.co.nz

ready for a new challenge MPI’s goal is to double exports for New Zealand and I decided LIC would be a great place to support the dairy sector to do its part towards that goal. – Wayne McNee LIC chief executive PAGE 5

Dairy News august 27, 2013

news  // 3

Nitrate finds deliver further blows ANDREW SWALLOW andrews@ruralnews.co.nz

Farmers join river clean-up. PG.11

No room to cut corners. PG.29

Fieldays chief turns hand to demolition. PG.39

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WHEN THE balloon went up on Fonterra’s whey

protein problem, fellow cooperative Westland was investigating a contamination incident of its own. Meanwhile Westland’s announcement has flushed out reports in the China Daily that Fonterra had a similar, much larger, problem in May. Westland, Hokitika, was notified August 1 by a Chinese client that found an “elevated nitrogen result” in a batch of protein product lactoferrin. Fonterra announced its clostridial contamination just after midnight, August 3. “What people need to recognise is, we’re not dealing with a notifiable pathogen,” Westland chief executive Rod Quin told Dairy News. Westland’s quantity of product affected – 390kg compared to Fonterra’s 38t – is also an order of magnitude less, and the lactoferrin hasn’t been further processed so there’s no scaling of volume up the supply chain. All of Westland’s two batches affected are now accounted for and “quarantined” in customers’ warehouses, says Quin. The 18-day delay from ‘enquiry’ by the Chinese customer to last week’s announcement was necessary to establish the facts and trace and lockdown product, he adds. “The challenge was to… see where the product had gone in a market as large as China.” Direct sales were made to two customers but they had on-sold to distributors and end users. “We’re confident of our ability to trace product that’s within our control. After that it [depends on] customers’ ability to trace product. Most are fairly good.” Whether the incident – believed to have been caused by incomplete flushing of a production line following cleaning – will have a wider impact

on Westland than the direct costs, for which it has insurance, remains to be seen, says Quin. “That’s something to be monitored and it’s probably too early to say. What we have seen is a easured response in China… we’ve had no cancelled orders and we are still doing new contract business into China despite the wider issues in the industry.” Changes to Westland’s cleaning, sampling and testing systems have already been made in light of the incident. Previously composite samples made up from several batches were tested to ensure products were within limits, as permitted by MPI regulations. The composite sample which included the two batches found to have elevated nitrogen levels – 610 parts per million and 2198ppm respectively – had tested within the 150ppm limit when produced in March but the customer had tested individual batches. Westland is now testing “batch by batch” for nitrates and a range of other components, says Quin. What the interim measures the ministry is considering would mean for Westland he couldn’t say

Rod Quin

last week, as they’d only just been revealed. “I’ve not had time to digest those yet. We’ve been focussing on our own issues.” Meanwhile Fonterra appears to have kept quiet over a much larger nitrate problem in May. On July 29 China Daily reported 42t of Fonterra whole-fat milk powder that was to be imported by two companies was stopped from entering the country in May by Shanghai’s entry-exit inspection and quarantine authority. Labour primary industries spokesperson Damien O’Connor is now calling on Primary Industries Minister Nathan Guy to reveal whether he knew about the incident and, if he did, why he kept the knowledge from the wider dairy industry. “Revelations about this ban on Fonterra milk powder come at a time of intense international scrutiny of our dairy industry…. New Zealand’s reputation is at stake,” says O’Connor.

Product passed NZ test FONTERRA LAST week told Dairy News the

42t of product “mentioned” by China Daily and O’Connor was tested in New Zealand and met New Zealand specifications. It was then shipped to China, where it was tested again and did not meet their testing specifications “This can happen, for example, when different laboratories and testing methodologies are applied,” a spokesman said. “In this case, we chose to accept the Chinese laboratory results and implemented the necessary processes and documentation required for

advising regulators in both China and New Zealand of non-compliant product. “The product was 100% within Fonterra’s control the entire time and none of the product had crossed the border into the market.” Fonterra was unable to respond to Dairy News’ questions as to why the rejection wasn’t made public at the time, what the cause of the excess nitrate was, whether changes to procedures had been implemented as a result of the incident, or how many similar product rejections it had experienced in the past year.

Dairy News august 27, 2013

4 //  news

Botulism scare a wake-up call – Kaye PETER BURKE peterb@ruralnews.co.nz

FIND OUT what happened and restore and build confidence in New

Zealanders and its trading partners. Those are the outcomes Food Safety Minister Nikki Kaye wants from the ministerial inquiry into the whey protein contamina-

l part and parce be C of the inquir y will WHILE PARTS B and ion rat du the s, ee month completed within thr n. of Part A is less certai to chair the Part A Miriam Dean, QC, is mbers are still to be inquir y; two other me Deariat will work in the appointed. A secret MPI. in t no , IA) (D s air Aff partment of Internal e. cid l be for Dean to de Venue and timing wil the s say ye Nikki Ka Food Safety Minister rt A will depend on Pa for line ad de reporting liance investigamp co the duration of MPI’s I indicated last week tion of Fonterra. MP x n could take three-si that their investigatio months.

tion disaster. The issue is a wake-up call for New Zealand, she says, but better, stronger food safety systems will result. The inquiry will be in

three parts, the last two looking at regulatory, legislative and best practice requirements; Part A will be wider and is likely to draw on material and evidence from other investigations by Fonterra and MPI. Kaye told Dairy News she sees parts B and C as an independent check on our food safety systems and the whole supply chain, including processes for testing and reporting. She expects this part of the inquiry to be completed within three months. “The reason Minister Guy and I put a threemonth deadline on that is that we recognise all those farmers and food businesses out there can’t wait and have this lingering. We’ve got to get on and restore confidence in our trading partners and New Zealanders.” Given that New Zealand exports millions of food products each year,

there always have been and will be quality assurance issues because “you can’t have a perfect system,” Kaye says. “I’m hoping the second part of that inquiry will [set the event] in the context of comparable jurisdictions and [show] where we have been in our food safety systems and what is the error rate. I want… advice on where there needs to be strengthening. I am working on areas where I think we can do better but I am not prepared to say until we have the evidence.” Currently the Food Bill, which contains some changes, is before a select committee and Kaye has written to the chair about possibly delaying the bill pending the outcome of the various inquiries, then perhaps making changes. An event such as this must be seen in perspective, Kaye says. It is disappointing but the inquiries

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will get to the bottom of the problems. “There will be a check on our food safety systems because we have high standards. We then need perspective and context in respect of what other countries do and the potential natural error rate: that’s the balance we are trying to achieve. “My role as Minister for Food Safety is obviously to see that we have high standards and to understand and be able to present the fuller picture of how we sit com-

Nikki Kaye

pared to the rest of the world. The inquiry is an opportunity to show

that,” Kaye says. @dairy_news facebook.com/dairynews

mpi ups assurance MPI IS beefing up its monitoring of food safety regulations. Acting director-general Scott Gallagher says from now MPI will lift the regulatory presence in manufacturing premises and the level and nature of testing in dairy production, to improve the identification of non-compliance issues. MPI will also run tracing systems to test the capability of the dairy industry to rapidly track and

trace product through their supply chains and will increase the reviews of the risk management plans dairy producers have for manufacturing facilities. “At the same time, MPI is increasing the level of analysis it routinely undertakes of regulatory non-compliance in the dairy sector. We will look for trends that help us identify any further interim measures that may be required.”

rumours run wild RUMORS ARE running wild on what happened at the Hautapu dairy factory to cause contamination of 38 tonnes of whey. Dairy News understands the Hautapu plant had been shut down – but not washed down – when it received a late order for whey. Then, so we heard, the order was understood to have been for use in animal feed, not for human consumption. Speculation is that a ‘jury rig’ system was used to produce the product, involving alkathene pipes

plus the usual stainless steel pipes. We further understand that when a problem was discovered, some of the whey was disposed of and some kept. Dairy News questioned Fonterra on these points but they declined to answer specifically, saying instead, “As part of the review findings we will be specifically addressing what went wrong at the plant and at that time we will be able to talk about this in more detail. We won’t be commenting or be drawn into speculation until the review is complete.”

Dairy News august 27, 2013

news  // 5

Talking with farmers priority for new LIC chief THREE WEEKS into his

role as chief executive of LIC, Wayne McNee says he is impressed by the passion and enthusiasm of staff. “You could argue they’d naturally show a good face with a new boss on the scene but this commitment runs deeper than the desire to impress. The drive to deliver excellent service to our farmer shareholders runs deep and has underscored everything I’ve experienced in my first few weeks on the job.” It’s too early for McNee to comment on his vision for the organisation or its strategy; a short term priority is “to get out and meet our owners and customers to understand what they need from LIC, now and into the future.” These visits with shareholders will be an enduring feature of his leadership. “I plan to get out of the office at least one day a week to talk with farmers. There’s no better place for a chief executive than talking with the owners and customers of the business. In our case they are one and the same.

“I’m looking forward to regularly meeting a crosssection of our farmers – from those starting out to the large established farmers – with corporate owners and with iwi. I need to understand the range of needs so I can come back and discuss how LIC can help them achieve their goals.” LIC Newstead staff are said to have found McNee open and direct; many are surprised to find the bloke who’s arrived in their office or sat beside them in the cafeteria is the new boss. McNee says LIC has a clear strategy, vision and purpose for the next few years but thought needs to be given to the strategy beyond that. “I’m looking forward to working with the executive team and board to understand the areas of potential and growth so we can develop a strategy which will deliver greater value to customers and owners.” McNee came to LIC from the public service, most immediately as chief executive of MPI. He was 14 years in head public service roles – including Ministry of Fisheries and

MAF, which he merged with the Food Safety Authority to create the Ministry for Primary Industries. “In that time I’ve enjoyed and been privileged to lead talented teams doing great work for New Zealand but the time came, last year, when I sat down with my wife and decided that my next role would be in the private sector and, hopefully, in primary industry. “From an MPI perspective I thought it’d be another 18 months before I’d move on, but then I was approached about this role with LIC and it was simply too good to miss. MPI’s goal is to double exports for New Zealand, and I decided LIC

would be a great place to support the dairy sector to do its part towards that goal. “LIC is a very good business but it has the potential to be a great business. I couldn’t resist the opportunity to lead this organisation.”

LIC chairman Murray King (right) with new chief executive Wayne McNee.

The fact LIC is a farmer owned cooperative was, McNee admits, an added bonus and something which attracted him to the position. “You think differently about how and why you

do things when your customers are also your owners. You can’t think about the profitability of the business without also contrasting this with the quality of service you’re providing and the price

you’re charging for that service. “As owners, our farmers have a vested interest in what we do, they have every right to expect a level of insight into what we’re doing.”

From Oamaru to Oxford WAYNE MCNEE grew up on a drystock farm near Oamaru. His father was a sawmiller (as was his father and his father before him) and keen for his only son to follow in his footsteps. However, the younger McNee had his sights set on university and completed a pharmacy degree at Otago University. He worked overseas as a hospital pharmacist then back in New Zealand for Pharmac (the Government agency managing prescription pharmaceutical subsidies), where he became chief executive.

After nine years in that role (including 18 months seconded to the Department of the Prime Minister and Cabinet) he was appointed chief executive of the Ministry of Fisheries, then the Ministry of Agriculture and Forestry, before leading the integration of the Ministries of Agriculture, Forestry and Fisheries and the New Zealand Food Safety Authority into a single agency. McNee studied leadership and strategy at Mt Eliza, Oxford, Stanford and Insead business schools.

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Dairy News august 27, 2013

6 //  news

Quality boost will start at problem plant pam tipa pamelat@ruralnews.co.nz

FONTERRA IS boosting its qual-

ity assurance, starting this week at the Hautapu plant – the site where the contaminated whey was produced. This news of extra quality assurance for nutritional plants comes hot on the heels of MPI saying it is “exploring interim measures to strengthen consumer assurances on New Zealand’s dairy production”. Those interim measures include lifting the regulatory presence in manufacturing premises and lifting testing across dairy production. And it will run tracing simulations to test the capability of the industry to rapidly trace product through supply chains and increase reviews of the risk management plans dairy producers have for manufacturing

facilities. In response, Fonterra group director of communications Kerry Underhill told Dairy News that Fonterra is committed to working with MPI to safeguard the reputation of New Zealand’s dairy exports. “We are happy to co-operate with the interim measures they propose. We are also focused on product testing and quality control standards as a key part of our operational review.” Shortly afterwards Fonterra announced its own programme for greater quality assurance. Chief executive Theo Spierings says it is important Fonterra gives its customers, consumers, regulators, farmers and its own teams the confidence that the co-op is going above and beyond world-best quality and food safety systems and processes. “Fonterra will check, double check and triple check, if neces-

sary. The additional quality assur- nutritional plants. Spierings says ance at Hautapu and our five other Fonterra must get the basics right, nutritional plants over the coming “taking a hard look at all aspects of our processes and months will encomthe way we currently pass further checkoperate, and making ing and servicing of the changes necesall equipment and sary to build a stronprocesses to ensure ger Fonterra”. they continue to In announcing meet the highest the MPI initiatives, possible internaacting director-gentional standards. eral Scott Gallagher “Every year, each says our dairy sector of our plants under- Theo Spierings trades on New Zeagoes thorough maintenance and review during winter, land’s reputation, built on the before being re-commissioned for strong assurances our regulatory the new season. They are also rou- system provides and the quality of tinely cleaned, tested and main- New Zealand’s products. “The reality is the convergence tained throughout the season. This year – in light of the precautionary of events over the last six months recall – we are going one step fur- has sparked debate about some elements of our food system. We need ther.” The programme will begin at to respond to that.” Fonterra’s Hautapu site this week, @dairy_news before starting in Fonterra’s other facebook.com/dairynews

in brief Compromise on underpasses DAIRY FARMS in Waimate District, South Canterbury, won’t have to install underpasses on every road their cattle cross following a successful appeal of the district plan by Federated Farmers. A concession on the location of new milking sheds or cattle housing was also gained, the proposed set-back from boundary or road requirement being reduced from 200m to 100m. A requirement for 500m separation from existing dwellings or public reserves on neighbouring land has also been cut to 400m, or, if neighbouring parties sign an agreement to it, 300m.

GDT prices up LAST WEEK’S Global Dairy Trade auction was up 2.3% overall at an average of $4,941/t with most commodities where Fonterra is the main seller leading the way. Anhydrous milk fat leapt 7.1% to average $4,931/t, butter gained 3.3% to $3614/t, wholemilk firmed 2.7% to $5,124/t, rennet casein climbed 1.9% to $10,085/t, milk protein concentrate added 1.5% to $7828/t, and cheddar edged up 0.9% to $4375/t. Skim-milk powder, where Dairy America was also a seller, eased 0.7% to $4,426/t, and butter milk powder, where Fonterra was the only seller this round, was down 3.3% to average $4,689/t. The numbers seem to refute one commentator’s suggestion the WPC80 scare has hit New Zealand’s usual market premium, as does a comparison of skim-milk prices.

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Dairy News august 27, 2013

news  // 7

Glyphosate and botulism link ‘lacks logic’ ANDREW SWALLOW andrews@ruralnews.co.nz

REPORTS BY some

news media that glyphosate use might be behind Fonterra’s whey protein botulism contamination have been slammed by scientists. Blogs on the subject by university academics labelled the reports by Straight Furrow, Radio NZ and others as “highly questionable” and “wildly speculative”. Meanwhile Waikato University professor of agribusiness Jacqueline Rowarth says the suggested link lacks logic and the German research behind it is far removed from New Zealand farming. “The problem is some people pick up these things and report them at face value instead of saying ‘is this logical?’,” she told Dairy News. The research, by Kruger et al of Leipzig University, found glyphosate wiped out normal enterococcal gut bacteria in laboratory conditions, but was less damaging to the clostridium botulinum pathogen even at higher concentrations, prompting the suggestion ingestion of glyphosate-laden feed could be having the same effect in cows’ guts. The paper says the

research was prompted by an increase in botulism in cattle in Germany during the past 10-15 years but Rowarth says she’s not aware of any such increase here, and we’ve been using glyphosate since the 1970s. “Spraying out pasture with glyphosate and grazing three days later is our standard technique for pasture renewal, so why don’t we see problems here? Because clostridium botulinum is a pretty rare species in New Zealand!” The German work was also done on strains of the bugs found in poultry, not those from cattle; was in the lab (in vitro), not in animals (in vivo); and used extremely high rates of glyphosate.

Jacqueline Rowarth

“The logic of [a glyphosate – botulism link] just isn’t there. We would have noticed a problem with botulism before.” Heather Hendrickson, a molecular bioscientist at Massey University, blogged that the research paper was interesting but seemed to have little to do with the recent Fonterra case.

“While the use of glyphosphate in agriculture here has quadrupled since the 1960s, I have not found any indications in the literature that C. botulinum infection in cattle is on the rise in New Zealand, as has been noted in Germany,” she wrote. Auckland University microbiologist Siouxie Wiles noted the Irish Department of Agriculture, Food and the Marine says disease-causing C. botulinum in cattle are strains C and D which do not cause disease in humans, but Fonterra still hasn’t released information on which strain it found.

butt covering exercise strain Fonterra’s failure to identify the ROWARTH IS also scathing of incident. le who the of g dlin han its of the c.botulinum involved, and has come out with incomplete “The main problem is Fonterra lem was.” statements about what the prob using spores, rather than the toxin-ca with ling dea was it said Had it was risk e it would have been clear the bacteria itself, at an earlier stag perceived, she says. considerably less than initially nificance compared to the four insig into s pale But that delay a probcommunicate that there was months it took to confirm and ut it being abo n clea ing com and uct lem, instead of withholding prod investigated in April. ple…. without really frightening peo “They could have done it then ion.” municat This is a systemic failure in com ’s enquiry team is laden with She also questions why Fonterra really een’s counsels) when what it board members and QCs (Qu all steps at look ld wou processors who needs are scientists and food ht mig ion inat tam con the ate how of production and rigorously deb have happened. be a butt-covering exercise.” “[The enquiry] is guaranteed to

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Vet stands by his assertion RETIRED MATAMATA vet Frank

Rowson told Dairy News he stands by his comments that there could be a link between glyphosate use and increased incidence of botulism in cattle, though he admits he’s not aware of any cases of botulism in New Zealand cows. He also says with New Zealand importing nearly 200,000t of soy/year, most of it likely to be GE and grown using glyphosate, some will be finding its way into cows’ diets. Massey University vet and NZVA spokesperson Jenny Weston confirmed to Dairy News that botulism is unheard of in New Zealand cattle. “The only animals I’ve found it in

in the literature are numerous cases in waterfowl such as ducks, shags and other birds…. If cows in New Zealand were suffering from botulism we would be seeing cases.” Overseas, botulism in cattle tends to be associated with feed contaminated with carcase remains. In Australia it’s often due to cattle being phosphate deficient and chewing bones as a result. “It’s the toxins in the feed that usually cause the botulism rather than the bacteria itself.” Symptoms in cattle are paralysis, difficulty eating and drinking, and recumbancy. “It looks a lot like milk

fever but tends to happen in summer whereas milk fever’s at calving.” The NZVA slammed initial reports of Rowson’s comments as “speculation and not helpful” to investigation of the whey protein incident. Rowson is no longer a vet or a member of the NZVA and does not represent the views of the veterinary profession, the association said. “We are dealing with a complex scientific issue and we need to bring together the relevant scientific expertise in New Zealand to ensure the investigation leads to a successful resolution,” said NZVA president Steve Marchant.

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Dairy News august 27, 2013

news  // 9

Tail-breaking condemned – again andrews@ruralnews.co.nz

A FOURTH tail-break-

ing conviction within a year has been widely condemned by industry representatives. The Ministry for Primary Industries last week said herd manager Kevin Craig Smith (38) was convicted in Ashburton District Court after pleading guilty to wilful ill-treatment of 154 dairy cows by breaking tails and failing to provide treatment. He also admitted striking animals with a plastic pipe. “The defendant didn’t accidentally break the tails trying to force the cows into the milking shed; they were deliberately broken after he lost his temper,” said MPI compliance manager for Canterbury/Westland Peter Hyde. “This sort of behaviour is totally unacceptable to MPI and the wider farming community. If animal welfare abuse of this nature is detected it will almost certainly result in prosecution.” Hyde told Dairy News he believes the trend to larger dairy farms, with more staff and less involvement of the herd’s

owner(s), is a factor. “If you’ve paid $4000 for a cow you’re not too inclined to damage it.” Greater awareness of ill-treatment and consequent reporting may also be a factor in what appears to be a rising trend of cases, this latest case being the fourth he could recall within a year. “Owners are checking cows, as they should do because they are liable too if there’s ill treatment.” Suspicions about Smith’s behaviour were raised in April by an AI technician who heard a loud noise and sounds of distress from a cow on the farm. When she went to see what happened, she saw Smith looking angry and a cow with blood coming down its tail. A veterinary inspection ensued, finding 154 cows among the 640 Smith managed had fractures in their tails that were clearly man-made. During MPI’s investigation Smith admitted to wilfully breaking the tails of a number of cows and said he was “sickened” by what he had done. He will be sentenced on October 14. The maximum penalty is imprisonment not exceeding 5 years or a fine

not exceeding $100,000. In February a Waikato herd owner was jailed for two years and one month for breaking 115 cows’ tails. Last week, following Smith’s conviction, Federated Farmers, DairyNZ and the New Zealand Veterinary Association, released a joint statement condemning such behav-

iour. “We’ve seen several instances of this unacceptable practice as of late and it defies logic and stockmanship,” said Feds Dairy chairman Willy Leferink. The pain and distress caused would cut cows’ production and make them harder to work with and the perpetrator would

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likely lose their career in the dairy industry, he said. “If you are hot-headed and prone to lashing out, can I suggest the dairy industry is not the career for you.” Leferink highlighted Federated Farmers’ recent notice to members about employer rights in animal welfare cases. “If you have missed this, visit www.

fedfarm.org.nz or telephone 0800 327646.” Dairy NZ animal welfare and husbandry team leader Nita Harding encouraged farmers to access the levy-body’s resources and events on stockmanship.

Willy Leferink

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Feds back RMA changes FEDERATED FARMERS says it supports the

changes the Government is making to the RMA because most of the changes are in line with the federation’s own policy views. The Feds spokesperson on the RMA, Ian McKenzie, says he’s impressed by the understanding the Minister for the Environment, Amy Adams has of the RMA and her moves to unblock things of concern to farmers. The changes proposed will clarify, give certainty and streamline consenting. “The critics of these changes say it’ll encourage degradation of the environment. But those same critics now trying to defend the existing RMA [concede]… the RMA wasn’t working particularly well for the environment.” McKenzie says the biggest gain for farmers will be certainty when they apply for resource consents, especially on which natural landscapes and waterways need to be protected and which can come up for development. And likely rules will force district and regional councils to align their plans into what he calls a ‘one plan’ concept. McKenzie is pleased at Adams forcing regional councils to produce more robust and detailed ‘section 32’ reports, designed to analyse the impact of plans on the community. Under the new law, ‘section 32’ reports will have to be done earlier in the planning process to give citizens more information on which to base submissions on a plan.

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10 //  news

Hike in farm sales figures FRANCIS WOLFGRAM

THE LATEST REINZ

figures show that for the three months ended July 2013 the median sales price per hectare for dairy farms was $34,882 (47 properties sold), compared to $29,555, for the three months ended June (66 properties sold), and $22,679 (29 properties sold) for the three months ended July 2012. The highest median price per hectare was in Taranaki at $47,319, followed by Canterbury $38,967, Southland $37,663, Auckland $37,109, Bay of Plenty $34,966, Waikato $26,467, Otago

$25, 215, Nelson $23,247, Wellington $21,798, West Coast $17,021, Hawkes Bay $16,476 and Northland $12,105.

down from January 2013 which was 1047kgMS – the highest ever recorded by REINZ in a month. On an annual basis,

“This growth in the dairy sector is being reflected by farmers and investors actively looking to buy existing dairy units, dairy support units and farms with potential for conversion.” The median dairy farm size for the three months ended July 2013 was 147ha with a range from 64ha in Waikato to 525ha in Hawke’s Bay. Median production per hectare across all dairy farms sold in July 2013 was 861kgMS,

2012 sales activity levels rose in 11 of the 14 regions measured by REINZ. Sales numbers were greatest in Canterbury which has led the trend to dairy conversions and where 239 sales were reported, up by nearly 30% on 2011.

While well up on the 126 sales recorded at the trough of the market in 2009, sales volumes are still significantly below the average of just over 340 per annum which prevailed in Canterbury between 2000 and 2008. The Waikato region experienced the second highest volume of sales in 2012, at 174, up from fourth place in 2011. The Waikato region’s climb in the rankings was due to a sharp increase in the sale of dairy farms, with transactions doubling from 28 in 2011 to 57 in 2012. This growth in the dairy sector is being reflected by farmers and investors actively

Sales of dairy farms are picking up.

looking to buy existing dairy units, dairy support units and farms with potential for conversion. Southland, big in dairy conversions, was the third most-active market with 151 sales in 2012, followed by the Manawatu/ Wanganui region with 137. Cow numbers reached 4,634,226, over the 201211 period, an increase of nearly 21% since the 200506 season when the total stood at 3,832,145. Most

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growth in cow numbers has been in the South Island where conversions have resulted in herd numbers rising sharply. The spike in conversion activity has reversed the trend of falling herd numbers brought about by farm amalgamation which had been a near constant theme for nearly 40 years. In 1974-75 there were 18,540 dairy herds in New Zealand but herd

numbers fell as low as 11,436 in the 2007-08 season. Since then they have increased to 11,798 as dairy farm development in the South Island has led to 500 herds being added there. The sharp increase in farms has seen the South Island share of herds increase from 20.9% in 2007-08 to 24.5% in 201112 while the share of cows has increased from 31.3% to 37.1%.

Dairy News august 27, 2013

news  // 11

Farmers queue to lift river health AT LEAST 300 dairy

farmers in the Upper Waikato catchment will contribute to improving the health of the Waikato River, in a project said to be the largest of this sort ever for the dairy industry. A further 220 farmers have signed up for it. The Upper Waikato Sustainable Milk project is intended to reduce the nutrient and sediment loads in the upper Karapiro catchment – from Huka Falls, Taupo, to Lake Karapiro, near Cambridge – and encourage more efficient water use. Tighter compliance requirements look possible in Waikato, says Waikato Regional Council. A recent study refers to “serious declining trends in nitrogen content, clarity and turbidity” in the Waikato and Waipa rivers. The report from council water scientist Bill Vant covers trends from 1993 to 2012. It is expected to heavily influence change to a regional plan for the health of the rivers. Runoff and leaching of nitrogen from farming areas can probably be blamed for the deterioration, says Vant. But the report showed a “mixed picture”, including some improvement. Levels of chlorophyll,

arguably a proxy for algal abundance, were either better or stable in the Waikato River, despite the poorer nitrogen levels situation, says Vant. Meanwhile the Upper Waikato Sustainable Milk project, launched last year, allows for free one-onone advice to 700 farms from Huka Falls to Karapiro Dam. The resulting ‘Sustainable Milk Plan’ is a farm-specific plan of steps to improve environmental performance. DairyNZ environment policy manager Dr Mike Scarsbrook said one year into the three-year project, 300 farmers had completed Sustainable Milk Plans and 220 more wanted to get started. “It’s not compulsory but farmers know being involved will pay dividends for their farm, the river and the wider catchment. They also know it will give them a head-start in coping with changing regulations.” Farmers involved promise specific environmental action. Many exceed the requirements of the new ‘Sustainable Dairying: Water Accord’ or milk supply companies. Of those farmers already in the project: ■■ One third have agreed to reduce nutrient losses from stock and

■■

■■

fertiliser One third have committed to planting waterways or to other types of riparian management One quarter have

■■

promised to better manage effluent storage. One third are looking to reduce water use or improve water efficiency.

Farmers are joining forces with Waikato Regional Council to improve the health of Waikato River.

science dialogue SCIENCE DISCUSSION will guide Waikato Regional Council’s approach to deteriorating trends in the Waikato and Waipa Rivers, says council water scientist Bill Vant. Identifying what the data is saying, and talking about it, will help decide on a plan change for those rivers, and other catchments after that, says Vant. “The council is pleased at how its partner iwi and others in the region, including [farmers], are working together on these issues. “There is clear evidence in this report of actual and potential problems for our waterways.”

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Dairy News august 27, 2013

12 //  news

Nutritionist flies into WPC80 storm andrew swallow andrews@ruralnews.co.nz

FONTERRA AND gov-

ernment agencies have lots to learn about food scare crisis management, based on the experiences of a New Zealand-based nutritionist who found herself centrestage in

China when the WPC80 contamination case broke. Dr Lucy Waldron, of LWT Animal Nutrition, Feilding, was in Qingdao as a speaker at a poultry industry symposium during the first week of the Fonterra crisis. “I arrived there Monday morning to find Fonterra all over the

news,” she told Dairy News. She was there to speak about consumer evolution, functional feed ingredients and the growing focus on animal welfare, food quality and safety in the poultry industry. But as the “token New Zealander” at the event, she quickly realised

Lucy Waldron

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she would be quizzed about the WPC80 incident regardless. “I knew it was going to come up so I started phoning various contacts to get the official information about what had happened.” No one could tell her. “I was in a horrible position. You want to be

loyal to your home agricultural industry but when you have no information that’s very hard. All I could do was try to deflect the questions as best I could, saying it was all being investigated.” It wasn’t as though she needed answers that morning either: she was speaking on the Thursday, but even after three days there were still no further announcements, and contacts in the political sphere and in the dairy industry were still unable to help, she says. A fellow speaker at the conference, who has been involved in resolving many food scares in the UK, had given a presentation about crisis management in the food industry – which was timely but added to the discussion among Chinese delegates on the milk issue. He warned of the risk of companies having “skeletons in the closet” which would inevitably come out at some point. “Hopefully any other issues that may arise relating to dairy production in New Zealand will be dealt with appropriately and in a timely fashion,” comments Waldron.

Another speaker, from Nestle, asked delegates what they thought her company sells. The speaker’s answer was “trust”. “The biggest problem is [losing] overseas trust in New Zealand products. The attitude in China was ‘it’s a good job we’re becoming more self-sufficient in food production’. They have the capacity to do that in a matter of months, with their high levels of investment in home industries.” Delegates even asked Waldron how New Zealand could justify charging the Chinese people a premium for its product when it could no longer guarantee its safety. “I didn’t know how to answer that one” she says. “But we do have good animal scientists within New Zealand – maybe not in the public eye – who have the experience at home and overseas, to be instrumental in building value-added, quality brands which have the level of food safety needed to secure lucrative overseas sales. That is something we do have in our favour, and something I am proud to be involved in,”she says.

Horizons lauds farmers’ efforts

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HORIZONS REGION farmers have spent a lot of time and money on reducing the effects of dairying on local waterways, says the regional council’s chairman. Bruce Gordon says this is contrary to claims about ‘dirty dairying’ in the region; farmers’ efforts are too often overlooked. His comments come as Horizons begins its annual survey of dairy farms’ compliance. Statistics last season showed a record 93% compliance by farms and Gordon says the council is hoping for the same or better this year. “We appreciate the efforts farmers made last season across the board. These improvements are from increased diligence by farmers, industry and council staff to achieve best practice effluent management.” Last season just over 50% of the 920 dairy sheds in the region were inspected, of which 93% were graded as ‘compliant’, up 2% on 2011-12, and a vast improvement over the last two years, Gordon says. “This is further reinforced as last season we prioritised monitoring the most at-risk sheds only and the compliance rate still improved. The efforts made by the industry have also seen the number of infringement notices issued in the past two seasons drop from 38 to five and the number of abatement notices from 12 to four. And only one case was prosecuted for dairy effluent offences in 2012-13, further signaling farmers’ commitment to improving our waterways.”

Dairy News august 27, 2013

news  // 13 DairyNZ chief executive Tim Mackle (right) with MPI Minister Nathan Guy and ANZ’s Graham Turley at Parliament recently.

‘Diversify economy in tandem with dairy’ PAM TIPA pamelat@ruralnews.co.nz

KICK-STARTING INNOVATION

to diversify the economy can be done in tandem with the dairy industry, says DairyNZ’s chief executive Tim Mackle. He joined DairyNZ’s chairman John Luxton in defending the dairy industry in the face of a barrage of criticism and calls to change the country’s export focus in the wake of the Fonterra contaminated whey recall. Luxton says New Zealand likes to knock tall poppies. While the “poorly handled” precautionary recall is ‘a wakeup call’, it gives some a great opportunity to take pot-shots at this country’s only substantial internationally competitive industry, Luxton says. “We are lucky to produce high quality foods in great demand by the growing middle classes of Asia and the Middle East. This has meant our New Zealand economy has not suffered like many others as a result of the global financial crisis.” Meanwhile, commenting on a new book, Get Off the Grass: Kickstarting New Zealand’s Innovation Economy, by Shaun Hendy and the late Sir Paul Callaghan, Mackle says dairying in New Zealand has not been ‘backed’ at the expense of other sectors. “Its export value has grown by 83% in the last 10 years because our industry is innovative, resilient and highly competitive,” he says. Mackle says he agrees diversifying our economic base is important. “Some of the research I’ve seen points to the importance of cities and regions being powerful drivers of knowledge economies,” Mackle says. “They are associated with significant productivity gains and innovation and high densities of businesses in related industries. The new Lincoln Agri Hub that DairyNZ is a part of is an agricultural response to that for Christchurch and Canterbury. There is a food one in Palmerston North and we are looking to develop a hub in Waikato too. “DairyNZ has also co-operated with Auckland University in a partner-

ship to drive the connections between the highly skilled and globally mobile workforces in our largest city with the agricultural economy. It’s about leveraging off each other – not getting out of one and into another to kickstart innovation, as the title of this new book suggests.” Mackle says we need better collaboration between business, industry, education and research organisations. We also need co-ordinated planning and investment to address the growth needs in areas of competitive advantage. DairyNZ is working hard in that area by aligning the dairy industry more closely with the Crown Research Institutes, universities and other education facilities. “I think we can use the strength of the dairy sector to drive better connections and diversification between regional and city economies. Hamilton, for example, is an important centre for commercialising innovations because of its private and public research and development, particularly in agri-bio and science technology. “Local firms have also built expertise in steel manufacturing for the dairy industry that they are now transferring to aviation and other sectors. “Through the strength and growth of the dairy sector, metals manufacturing activity in the Waikato is now serving both the national and inter-

national markets, having developed from support activities serving dairying and milk production.” Luxton says at least 25% of New Zealand’s exports now come from dairy farms. New Zealanders’ standard of living would be third-world without our dairy industry. High-tech is not guarantee of export success. Nokia, a high-tech company with 20% of Finland’s exports a decade ago, has struggled to remain competitive against Apple and Samsung, and has posed a risk to that economy. “It is not for our dairy sector to be held back to reduce New Zealand’s dependence upon dairying, rather it is for us to continue to improve productivity and sustainability on the basis of good scientific research, development and continually improving systems.” New Zealand’s dairy industry has grown because of massive investment in new science, new technologies and sophisticated farm systems by 10,000 mainly New Zealand-owned family businesses, so that we now lead the world in the production of long-life dairy products, Luxton says. “Many of our second tier exporters have made their mark by providing our farmers with new technologies. Milking systems, electric fencing, security systems and specialised dairy products are exports growing out of New Zealand on-farm success.”

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genuine authenticity AREAS OF “authenticity” have the greatest potential for diversifying the economy, says Professor Grant Guilford, dean of science, University of Auckland. “A diversified export economy will assist future economic resilience,” he says. “However, in my view, successful diversification is much easier in areas of genuine authenticity. “That is, where you have genuine strengths recognised by your export market. For this reason, leveraging off our global reputation in sustainable agriculture into such areas as agri-technology, biotechnology and enhanced-value foods makes sense and is the thinking behind the university’s recent partnerships with DairyNZ.” The university set up a joint graduate school in dairy late last year aiming to educate postgraduate students in fields relevant to the dairy industry and increase collaboration between the partner organisations. The school’s disciplines contribute to sustainable productivity onfarm – genetics, agricultural technology, environmental science, and those that add value beyond the farmgate, such as food science and business.

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Dairy News august 27, 2013

14 //  news

Feds in the loop peter burke peterb@ruralnews.co.nz

NEW ZEALAND dairy products are safe: that’s the message Federated Farmers president Bruce Wills will push to other farming leaders when he attends three big international conferences leading up to the year’s end. He will point out that though contamination issue was most unfortunate, in fact the quantity of whey involved was minute – and this was a one-off incident. The conferences don’t have dairying specifically on their agenda but he plans to “tell the New Zealand story” just the same, he says. Feds has been kept well ‘in the loop’ about the contamination scare, Wills says. “Feds’ dairy chairman has been in regular contact with the board and senior management of Fonterra. The other week I… met

up with John Wilson and Theo Spierings and spent time with Tim Groser, Nathan Guy and others. We have been in the loop but it’s a Fonterra and a Government issue and does not directly involve Feds.” While the dramas are playing out in the media, dairy farmers have their heads down dealing with calving and other issues associated with spring, Wills says. Farmers are focused on producing high quality milk. He still sees a question mark over the long-term financial impact of the botulism scare, but he hints the news may not all be bad: prices in last week’s GDT auction were up 2.3%, and the New Zealand dollar is now higher on average against most currencies than before the botulism problem surfaced. “The Fonterra shareholders fund has largely recovered from the drops we saw a day or two after the event was revealed. The financial markets are telling me ‘yep, there are issues –

“Fonterra could have handled the issue better.” especially short term. There is some brand stuff to sort through, but this is not going to have a serious impact on Fonterra’s balance sheet long-term’. We can take some comfort from the fact that worldwide dairy supplies are tight. Yep, it’s going to be tough to work through and it’s unfortunate…but we are going to get through this.” In hindsight, Wills says Fonterra could have handled the issue better, but he is full of praise for Fonterra chief executive Theo Spierings’ handling of the crisis. “He has been very open and transparent. As soon as they got a hint of potential risk in a very small quantity of product they went public…

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Bruce Wills

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ulism crisis will be very small, says Federated Farmers Dairy chairman Willy Leferink. He told Dairy News any losses that might occur will be shared equally by everybody and farmers will not feel the full impact of any change in financial circumstances by Fonterra. Many people don’t realise just how big Fonterra is as a company, he says. No other company can so meet the world demand for dairy products. If it were cars or meat products, the situation might be different. “What has happened is irreversible; now farmers will deal with the consequences, he says. “They’ll hammer the board on it… when we have our account meetings and the hard questions will be asked but it will

never be in the media. “My personal advice would be not to burn off people but to get the best people on the job. If farmers think the best people are not on the job they have full right to deal with it, but for the rest I would advise leaving people where they are because there’s a limited number who can take up that role.” “Fonterra is ringing the bell on Fonterra,” Leferink says. “In due course when we start talking to our customers it will be reiterated that Fonterra has never taken a risk with customers.” The issues will surface in the media in coming months. “It might not be beneficial to the branding of Fonterra and Fonterra products but in the end inquiries are launched because there was a reason and those inquiries won’t all be on the same level. “There’ll be different aspects of the process and the chairman assures me the outcome will be a new and better Fonterra doing things differently and better.”

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Dairy News august 27, 2013

16 //  news

Council ‘misleading’ over lake water quality – Feds BAY OF Plenty Regional Council has omitted important facts and made misleading statements in a recent media release on the quality of the water in Lake Rotorua, says Federated Farmers policy advisor Gwyn Morgan. The release, ‘Rules for Lake Rotorua catchment a step closer’, “is disingenuous in its statement about reaching the “sustainable water quality target set by the community for Lake Rotorua”, and in direct conflict with the council’s own monitoring data, which shows the lake quality has already exceeded the community target,” Morgan says. “What I think the release meant to say was, ‘between the proposed

rules and incentive fund, Bay of Plenty Regional Council is confident it can reduce nitrogen leaching into Lake Rotorua where necessary by 2032’.”

reach its goals over the last seven years”. Isn’t a significant improvement worth celebrating? he asks. “There are already

“Farmers and industry bodies such as AgResearch, DairyNZ and Fonterra have been working hard in achieving a considerable reduction in nutrient loss and corresponding positive water quality concerns for several years.” Morgan says Federated Farmers is “disappointed the council seems unable to celebrate collaborative success, which has enabled the community to

rules for the Lake Rotorua catchment, such as Rule 11, which is a key rule in the Regional Land and Water Plan. Farmers and industry bodies such as

AgResearch, DairyNZ and Fonterra have been working hard in achieving a considerable reduction in nutrient loss and corresponding positive water quality outcomes for many years. “The agreed water quality target for Lake Rotorua has just been met, as measured by Bay of Plenty Regional Council. The target trophic level index (TLI) is 4.2 and Lake Rotorua is sitting at

Gwyn Morgan

4.08 so it has exceeded its target. “TLI is a measure of

Taranaki Regional Council Environmental Award winners for sustainable dairy farming, from left, Trevor and Teresa Hurley, with Ravensdown sales manager Mike Davey and Ravensdown account manager John McFadgen.

A TARANAKI dairying couple gung-ho about native planting and fencing streams have seen stream water quality rapidly improve, says fertiliser supplier Ravensdown. Trevor and Teresa Hurley have so far planted 6000 native plants and fenced 9km of streams on their 141ha

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years up to 2032 to ensure only necessary change is imposed on landowners and the community. Targets such as nitrogen reduction can be reviewed through this process and adjusted where appropriate.” Morgan says Federated Farmers insists any nutrient management is “appropriate and accountable to the best science and actual data of the day”.

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lake health and water quality and should not be confused with a nitrogen reduction target as set out in the Bay of Plenty regional policy statement. Nitrogen is only one of four parameters that make up TLI. They are nitrogen, phosphorous, turbidity (water clarity) and chlorophyll A (algae). “Scientific reviews [will be done] every five

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Awatuna farm near Mt Taranaki. Soon they noticed the difference planted riparian margins made to the waterways, he says. “I have noticed one stream is already cleaner.” The native boundaries, or ‘’buffer zone’’, filter potential run-off from pastures flowing into streams, and they give shade, create biodiversity and keep water temperature down. The couple’s Trevor Hurley Trust recently won the Taranaki Regional Council Environmental Award for Sustainable Dairy Farming. Ravensdown sales manager Mike Davey says the duo are worthy recipients, “doing an outstanding job, and I’m delighted their hard work and careful environmental management has been recognised.’’ Hurleys support the local Kaponga Lions Club by paying them hourly to plant the riparian margins as a fundraiser. They began planting in 2007, as part of the Clean Streams Accord between Fonterra, regional councils, Ministry for the Environment and Ministry of Agriculture and Forestry. They are working with the Taranaki District council to complete riparian planting by 2015.

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Dairy News august 27, 2013

news  // 17

2013 Sharemilker/Equity Farmer of the Year Don and Jess Moore.

Dairy awards gain new major sponsor THE 2014 NEW Zealand Dairy Industry

Awards has secured 12 major sponsors. National convenor Chris Keeping says the level of sponsorship and good relationships with the sponsors help the awards’ success. A record 566 entrants contested the 2013 scheme. “Our sponsors, some backing us since our inception 25 years ago, have played a critical role in driving interest from farmers keen to progress in the dairy industry and in providing incentives for them to enter.” The newest national sponsor, Triplejump, markets risk management for farmers, businesses and individuals. It has been a regional sponsor for three years. “We know farms rely on the expertise of their people,” says general manager Kerry Forde. “Our expertise is in developing

robust plans to manage the risks to farm productivity and performance from the unanticipated loss of key people. “As the awards are centred on celebrating farmers who are leading the way and on sharing knowledge to help make farming more successful, we believe our sponsorship of the awards aligns with our aspirations in the farming sector.” Planning is now in train for the 2014 awards New Zealand Sharemilker/Equity Farmer of the Year, New Zealand Farm Manager of the Year and New Zealand Dairy Trainee of the Year. Other sponsors are Westpac, DairyNZ, Ecolab, Federated Farmers, Fonterra, Honda Motorcycles NZ, LIC, Meridian Energy, Ravensdown and RD1. www.dairyindustryawards.co.nz

Ball to celebrate 25 years of awards THE 2014 NEW Zealand Dairy Industry Awards will celebrate the 25th anniversary of the sharemilker competition with a special launch event and celebration ball at its annual awards dinner. National convenor Chris Keeping says the anniversary creates an opportunity to delve into the sharemilker competition history and to celebrate its success. “It’s amazing that over those years thousands of sharemilkers have competed, relishing the opportunity to have their business analysed and enhance their progress in the industry while having some fun and meeting lots of people.” Keeping says the competition has affected many winners and entrants. “In a strange way it impacts on all those involved. My association has been about 15 years and it’s satisfying to see how the competition affects the personal devel-

opment of the participants and lifts their confidence to take on new challenges and opportunities.” She says the 2014 awards – New Zealand Sharemilker/Equity Farmer of the Year, New Zealand Farm Manager of the Year and New Zealand Dairy Trainee of the Year – will be launched in Taranaki on October 22. The sharemilker competition began in Taranaki and the first national winners, Kevin and Diane Goble, represented Taranaki. A 25th anniversary ball will be held during the national awards dinner at Auckland next May. The New Zealand Dairy Industry Awards are supported by national sponsors Westpac, DairyNZ, Ecolab, Federated Farmers, Fonterra, Honda Motorcycles NZ, LIC, Meridian Energy, Ravensdown, RD1, Triplejump and Primary ITO.

Dairy News august 27, 2013

18 //  world

Telco pledge music to farmers’ ears THE AUSTRALIAN Opposition Leader has pledged $A100 million to address mobile phone black spots if his party wins the general election next week. Tony Abbot says $A80m of this money would pay for mobile network expansion along major transport routes, in small communities and in locations prone to natural disasters. Australian farmers have welcomed the pledge, the National Farmers’ Federation (NFF) saying it would improve the lot of farmers in rural and remote communities. Farmers have called for improvements in mobile coverage for years, says NFF president Duncan Fraser. This is the first pledge of big investment in rural mobile coverage at a federal level in years, he says. “For farmers, mobile phones are integral to business operations and personal safety. [This would help] farmers participate in the digital economy. “Farmers spend most of their day outdoors, often far from their homes

Powering on: Australian Opposition Leader Tony Abbot on the campaign trail.

and landline phones. Access to secure mobile phone coverage means they can conduct their basic business from the paddock and get immediate assistance in, say, bushfire or accident.” Australians will vote on September 7. Abbot is the leader of the Coalition – the Liberal Party he leads and the Nationals, who represent rural Australia. The Labour Government is launch-

ing the National Broadband Network (NBN) to improve telecommunications. Abbot says he won’t abolish the NBN. Fraser says both major parties, through the NBN, have committed to improving conditions for rural and regional communities through fixed, wireless and satellite broadband services.

I can’t take risks here..

Cautious welcome for Green policy AUSTRALIAN FARMERS are

cautiously welcoming a Green Party policy on food security. The Greens want $A300 million set aside for R&D to protect land and water and help farmers. It says many farmers are struggling to make a living. “We’re losing precious agricultural land to mining, and we’re not prepared for the impacts of climate change,” says Greens’ leader Christine Milne. “ ‘Our Food Future’ is a roadmap for making Australia’s food system healthy, prosperous, fair and sustainable.” The policy proposes a $300 million boost for farming R&D and other measures designed to keep farmers on the land, produce good food and protect land and water. “Farmers’ markets, café culture and cooking shows on television show that Australians love food,” says the Australian Greens leader, Senator Christine Milne. “We’re lucky to have abundant and diverse

fresh food, and our farmers are renowned for their resilience and innovation,” But NFF president Duncan Fraser says the policy is “an adhoc approach to the farming community”. “While we cautiously support a range of measures in the Greens plan for food security, there are fundamental issues we are opposed to.” The NFF welcomes the R&D pledge but says the Greens still do not truly understand the farming community and the importance of issues such as the live export trade, the moratorium on coal-seam gas development or the potential implications of a water trigger in the EPBC Act (environment protection and biosecurity conservation). “Some measures proposed by the Greens are simplistic solutions to complex issues like trade agreements, land use and more broadly nutritional issues,” Fraser says. We are interested in real solutions that will work, not measures that look good on paper, he says.

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Dairy News august 27, 2013

20 //  world

Gloom lifting as Oz dairy confidence up Rick Bayne

THE GLOOM which has enveloped some parts of the Australian dairy industry appears to be lifting and is being replaced by a cautiously optimistic outlook as milk prices rise and seasonal conditions become more favourable. Farmers are saying they believe the worst of the tough season is behind them and that a higher opening price and a mild but relatively wet winter should set the springboard for a better season. Some winter pasture growth has eased fodder shortages and contributed to the more buoyant outlook. Cow prices are also moving up and are being pushed by more enquiries from interested buyers. While there are mixed outcomes and some farms are still struggling with equity, debt and feed issues, others are starting to build herds in anticipation of improved conditions in spring. There is also a move

back to dairy in some regions as farmers and investors see opportunities to capitalise on lower land prices. United Dairyfarmers of Victoria President Kerry Callow says most dairy farmers are starting to see a light at the end of the tunnel and were looking forward to a brighter season. Callow recently toured farms along the Princes Highway in south-west Victoria and found that while farmers were still concerned about economic pressures and apprehensive about spring weather, there was generally a more optimistic outlook than a few months ago. “By far the most serious concerns expressed to us came from the south-west because of the long hot summer, economic conditions and feed shortages,” she says. “In the north it’s still economically tight but most have been learning over the past 10 years to better manage risk and are coping okay.

“The economic conditions are also tight in Gippsland and because of the feed situation production has been quite a bit lower but it is picking up and farmers are generally feeling more comfortable with the milder winter.” Callow says there were still pockets of farmers across the state having difficulty managing the conditions. “The overarching problem is still the economic hit they’ve been through which dents the confidence of the industry. However, quite a few farmers are sick of the negativity.”

Victorian farmers Garth and Kelvin Wifen, bought three Holstein cows at Echuca recently for an average $A1400. The pair sold cull cows for $A800 and bought replacements ready to milk so they could capitalise on improved milk prices.

general feeling is that with the early price rise and the weather, as long as we get good rain in August and

There is also a move back to dairy in some regions as farmers and investors see opportunity to capitalise on lower land prices. Callow says that production levels have been lower than last year due to the feed shortage and economic conditions which had negated the effect of the milk price rise, “but the

autumn, things are looking up.” Callow added that the industry would learn from the tough season and develop better risk management practices. “Vol-

atility is always going to be with us and we have to learn to better manager those risks,” she says. Rural financial counsellor for the Kerang area in northern Victoria, Dominic Baxter, agreed that farmer sentiment was picking up. “The new milk price is a welcome lift and the season is encouraging,” Baxter says. “It has probably been the best winter rainfall for a few years. Fodder is growing a bit which has eased the feed shortages.” Baxter says some farm-

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ers were considering applying for the Federal Government’s concessional loan scheme and were still hurting from last year’s low milk prices and tough season. “But it’s a mixed bag…there is also a good deal of optimism and some talk of re-starting some former dairies,” he said. Baxter’s counterpart in south-west Victoria, Vince Thorne, says farmers seemed to be “past the worst of it”. “Farmers are sensing that the season is going their way which they look at as a positive,” says Thorne. “Milk production is still lower than last year but it is picking up and they see the rain and look forward to a good spring.” Thorne says more hay had been released in the area; farmers had taken advantage of alternate feed options and were growing more pastures due to the mild conditions. “A lot of farmers still have problems with trade debts and lower equity, but they are in a better situation looking forward than they were a few months ago,” he says. Thorne added that not many dairy farmers were taking up the Federal Government’s concessional loan scheme as it didn’t address their trade and working capital debt issues and because they wanted to keep a close relationship with their primary bank. Gippsland-based consultant John Mulvany from OnFarm Consulting says the general feel-

ing was of relief that there are some positive signs with the milk price finally getting into a range where there could be a reasonable return on assets and effort for dairy business operators. However, he added that in southern Victoria there would be “a lot of catch up” for many dairy farmers. Mulvany says any descriptor of a ‘typical’ dairy farm in 201213 was nonsense. “Some farms have returned very substantial losses while others have taxable profits despite harsh seasonal conditions,” he says. “The same issues of cost control, debt management and season mean that some will barely survive while others will thrive.” Mulvany says that for any growth to occur in the industry there needed to be two or three years of milk price in excess of $A5.80/kgMS “which is unlikely given historic volatility”. South Australian Dairyfarmers’ Association president David Basham says farmers had more confidence than a few months ago but many were still carrying a lot of debt. “There have been some mild feed shortages in certain areas but it was pleasing that hay exporters made hay available at reasonable prices to fill the gap,” Basham says. “It has been a mild winter generally with good rainfall and the crop outlook is also looking good which gives us more confidence.”

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Dairy News august 27, 2013

22 //  OPINION Ruminating

EDITORIAL

A whopping wake-up call

“Watch him! - he’s trying to cut out the AI man!”

milking it... Reckless Aussies

WE ALL know the saying ‘when you’re in a hole, stop digging’. But it seems one Australian-owned and controlled publisher hasn’t heard the saying; it continues to publish scare stories about the botulism problem at Fonterra – stories slammed by the Veterinary Association and others as unscientific and unhelpful. What the industry needs now is a rigorous and scientific self-examination to restore its image. Potty stories with no foundation have the opposite effect and help no-one.

Pure manure

YOU’VE GOT to hand it to the British tabloids: they’re the masters of the headline. Unfortunately New Zealand was on the receiving end in the wake of the Fonterra whey protein scare, The Daily Mail slamming our ‘clean green’ claims as “pure manure”. Jill Brinsdon, of Auckland brand strategist Radiation, was quoted as saying “it was only a matter of time before our dirty little secret came out.” Massey’s Mike Joy came in down page bemoaning lack of regulation of the dairy industry. With friends like Jill and Mike, who needs enemies?

Glyphosate link long bow to draw

TALKING OF pure manure, in science it pays to consider all the ‘what-if’ scenarios, and side-effects from widespread use of glyphosate are no exception. But when research into such possible sideeffects bears little or no relation to New Zealand’s farming systems, it also pays to exercise some judgement before using it to set hares running about such a controversial issue as milk contamination. Milking It suggests some rural journalists need to exercise similar judgement before reporting every conspiracy-theory story that comes their way, even if it does fit their personal anti-GE, anti-irrigation or antidairy agenda.

A little cabin in the (financial) woods?

RAVENSDOWN’S POLICY, like those of many farmer cooperatives, is to rotate its annual meetings around the regions and alternate between islands: New Plymouth last year, Nelson before that. Some shareholders grumble such locations are harder to get to than main cities. Ravensdown’s choice of town this year, Ashburton, has the advantage of being close to the cooperative’s South Island roots and only an hour from Christchurch airport. With the poor financial results just reported, what’s the betting the board are wishing they’d booked a cabin for 12 in the farthest corner of Fjordland.

NOW THAT the hype over the Fonterra whey contamination has died down and the mainstream media have flown off to another ‘dramatic event’, we begin the serious business of finding out exactly what happened at Hautapu and within Fonterra. Fonterra is looking at itself twice, MPI is looking into the co-op and, as part of a ministerial Inquiry someone else will look into MPI. In the meantime MPI has decided to up the ante and do more compliance checks right across the dairy industry, so has Fonterra and no doubt Westland is doing the same. There is a flurry of activity as everyone seeks to reshine tarnished images. The challenge is time. John Key says he wants to go to China soon to tell the politicians and people what happened and why, and what’s being done to prevent a recurrence. Interestingly the independent ministerial Inquiry has effectively been divided into two parts though the news release says three. Parts B and C are essentially technical inquiries looking at food safety systems, regulations, policy and processes, whereas it seems Part A will be a wider, more encompassing inquiry with access to the MPI compliance investigation into Fonterra. MPI says this could take three-six months – hardly a deadline, but then a time constraint could compromise the investigation. Food Safety Minister Nikki Kaye has a big issue to deal with; so far she has dealt with the matter in a professional and logical way. She has ideas about what needs doing, but has also said she has an open mind and would be receptive to any ideas that might improve the food safety regulations or processes. She, like John Key, wants answers soon but is careful not to push too hard on timing for fear something important could be overlooked. Undoubtedly the various inquires will again attract the vultures of the mainstream media for another feeding frenzy, but hopefully a sensible perspective will get equal prominence. On the face of it we’re seeing a genuine attempt to put things right and learn from this whopping wake-up call.

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

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Dairy News august 27, 2013

opinion  // 23

Act but don’t panic over abatement notices Treat abatement notices with the respect they deserve, says lawyer Hans van der Wal, in this second in a four-part series. IF AN abatement notice from the council arrives in the mail, what should you do? Don’t panic, but don’t ignore it either. If you ignore it, things could get unpleasant. An abatement notice is intended to be a loud, clear message that the council thinks your farm has a compliance problem serious enough for it to

Hans van der Wal

take formal action. If there is a compliance problem and you do nothing about it, you are likely to be prosecuted for on-going non-compliance. Worse still, any fines will be higher because of the notice and any statutory liability insurance you have may be worthless, as insurers are unlikely to pay out when an abatement notice is breached. An abatement notice will always require you, by a certain date, to stop doing whatever the council says is unlawful (such as discharging effluent in a way that results in ponding) or to do something it believes is necessary for you to become compliant and to deal with adverse effects on the environment – such as fencing a stream to prevent stock getting into it. These notices should not be considered as ‘angry letters’, but they are formal legal documents with real legal consequences and must be taken seriously. If you fail to do what is required within the timeframe outlined in the

abatement notice, that in itself is an offence likely to be seen by the courts as having made matters worse than the non-compliance which led to the abatement notice in the first place. This will be reflected in the penalties imposed. Further, these notices do not expire on the date by which you have to comply, but will live on until they are cancelled. So you can be prosecuted for breaching an abatement years after it has been issued. Since an abatement notice is a binding legal document and breaching it is illegal, there are strict legal requirements on the council, which it has to meet to make the notice valid. If it has not met these requirements, you can appeal the notice to the Environment Court and apply to have the notice suspended (‘stayed’) until your appeal is heard. If the court agrees that the council has not complied with the necessary requirements, it will throw out the notice. Even if the notice was valid, and you have fixed the problem that led to it being issued in the first place, you can apply to the council to have it cancelled. If you can show that the notice is no longer required (or if it was wrong in the first place), the council has little choice but to cancel it. If it doesn’t you can lodge an appeal through the Environment Court. Once the notice has been cancelled by the council or thrown out by the court, it is ‘dead’, as it were, and you cannot be prosecuted for not doing what it required. Nor can it be used by your insurance company as a conclusive reason for not paying out on a statutory liability claim for a subsequent prosecution. • Hans van der Wal is a spe-

cial counsel at Duncan Cotterill Lawyers, with expertise in resource management and

related prosecutions. Email: hans.vanderwal@duncancotterill.com

If there is a compliance problem and you do nothing about it, you’re likely to be prosecuted for ongoing non-compliance.

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Dairy News august 27, 2013

24 //  opinion

Tax changes to hit herd values tony marshall

INLAND REVENUE (IRD) has announced it will make fundamental changes to the national standard cost (NSC) valuation method for dairy cattle that will increase livestock values from the 2014 income year. Various livestock valuation methods are available to farmers, but the valuation methods most commonly used are NSC and the ‘herd scheme’. As a result, the changes will have wide impact on dairy farmers. Should you care about a change in valuation methodology? Yes. It is important for dairy farmers using the NSC valuation method because any increases in value arising under the NSC valuation method are taxable income to the farmer. The change in methodology is likely to cause increases in livestock carrying values for farmers using NSC of about $400 per head for rising two-year-old livestock. This will also have a flow-on effect on the value of mixed-age cows in future income years. For a dairy farmer with 100 rising two-year-old heifers on hand at balance date, an extra $40,000

of income will arise solely from a change in the valuation methodology in the 2014 income year. The fundamental driver of the change is that the existing NSC methodology had not kept up with current New Zealand farming practices in respect of the costs incurred by a farmer in growing a rising one-year-old animal into a rising two-year-old animal during the course of that year. In the 2013 financial year, the NSC of growing a rising oneyear-old animal into a rising two-yearold animal was $119.20 per head. Under the revised methodology, it is likely to be about $500 per head. To understand why the change has been made, it is important to understand the methodology behind the NSC valuation method. NSCs are calculated using an approved methodology where direct costs of ‘breeding’, ‘rearing’ and ‘growing’ immature livestock are taken into account to determine a national average cost of production for each type of livestock. The NSC figures are supplied to the IRD under contract with Beef + Lamb New Zealand’s economic service, using actual on-farm cost data from representative sources. Where the existing methodology fell

down is that it has not changed to take into account the trend of dairy farmers treating the dairy farm solely as a milking platform with replacement stock being predominantly reared off-farm. Previously, replacements were more often reared on-farm or on a run-off block owned by the dairy farm operator. It is the inclusion of the extra grazing costs in the NSC valuation methodology that will result in the sharp increase in value. NSC was designed to ensure each individual farmer would not need to suffer the high cost of doing their own full-scale cost allocation accounting system to value livestock. NSC generates values acceptable to both farm business and the IRD, except for anomalies that have developed over time, such as the one being addressed with these changes. The IRD has recognised that such a fundamental change, which will bring with it increased income for dairy farmers, cannot be brought in in one fell swoop. Accordingly, the change will be phased in over three income years commencing with the 2014 NSC determination. Farmers valuing dairy cattle using

NSC will see increased values and increased taxable income over the next three years as a result of the change. As such, it may be an opportune time to reconsider what valuation options you will use, and in particular whether it is an opportune time to enter the herd scheme, particularly given the drop in herd scheme values for the 2013 year. Farms should bear in mind, however, that once they have chosen to value their livestock under the herd scheme, this is an irrevocable election following changes to that valuation method as a result of changes introduced as at 18 August 2011. • Tony Marshall is a tax advisory principal with Crowe Horwath, Dunedin. Tony Marshall

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Naturally ahead

Malcolm Ellis – Bull Acquisition Manager

As a farmer making breeding decisions I always wanted the best, and Premier Sires gave me the top ranked LIC progeny tested bulls. With the advent of genomics, there was a need to consider the issues of risk and reward. Reliability has been an issue, and some of the early results from young sires did not meet expectation. With the lessons learned over the past several years LIC has taken the opportunity to review the structure of the Premier Sires teams. The Daughter Proven option remains unchanged, and there is still an alternative for those wanting to access the cream of the young sire crop. This is called the Premier Sires “Forward Pack” and it is comprised of the top ranked bulls from both categories – the best Daughter Proven sires complemented by a selection of young sires that we think tick all the boxes – outstanding ancestry, proven cow families, depth of pedigree and genomic evaluation. I always demanded the best, now I’m going to deliver it.

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Dairy News august 27, 2013

26 //  agribusiness

Focus on good time management A STRUCTURED

approach to time management and its role in maximising farm business capability gets comparatively modest attention in farming. This contrasts with the emphasis on time recording and a measured approach to achieving productivity evident in many other businesses sectors.

It’s relevant at this time of year as gearing up for the new season presents physical challenges to farming teams. Effective time management relies on best practice management in such areas as planning, selected use of the latest internet technologies, commitment by manag-

peaks. It empowers them to think ahead of the game so they can prepare the team and their systems for what lies ahead. There are three key areas to focus on: First, commitment to transformational leadership by growing capability within the team. Top teams are dedicated to

ers to a transformational approach to team leadership and continuous focus on proactive communication. The benefits are consistent with the long-recognised principle that it is timing that drives top 10% performance. Such strategies enable managers to stay ahead of seasonal

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team informed while minimising the time consumed in doing so. They also work hard to communicate day-to-day targets and ensure performance is monitored so they can be confident key components of farming systems are being delivered. Options can range from getting photographic evidence of completed tasks to systems or using check lists and sign-off by staff to confirm tasks are complete.

Time spent in training and development must be recognised as an investment rather than a cost. It increases the potential for delegation so supervisors and leaders can focus on management and delivery of targets.

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training, development and understanding of systems so that when pressures come on everyone knows what is expected and how to respond. Time spent in training and development must be recognised as an investment rather than a cost. It increases the potential for delegation so supervisors and leaders can focus on management and delivery of targets rather than getting caught up in day-today operational tasks.

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Effective leaders ensure their personal time management is driven by commitment to activities that increase productive capacity and reduce their involvement in day-today operations. This way they leverage their skills and know-how to get the timing right for key activities. I’ve noticed managers who excel at this can make things look deceptively easy. They seem to be less stressed and, like talented sports people, always seem to have extra time to react. Second, effective communication. When workloads increase there can be temptation to postpone staff meetings and the one-on-one ‘checkins’ that help maintain relationships. This is usually counter-productive as reduced communication increases the risk of error and misunderstandings. In times of extra workload smart operators find more efficient ways to maintain communication. They make use of short and frequent briefings to communicate the plan and keep people informed, while deferring more detailed consultation meetings which require more feedback and dialogue. They use e-mail, whiteboard agendas, breakfast meetings and other creative approaches to keeping the

Third, increase capability by taking advantage of new technologies. The combined availability of GPS, smart phones and apps (applications) to support planning, communication and logistics management has opened new horizons. These include remotely monitoring the location of staff members, exchanging images or video through e-mail, diagnosing and resolving on-farm problems, and sharing electronic ‘to-do’ lists with team members to keep everyone working to priority. These depend on access to the internet, but this will continue growing as telecommunications and satellite systems become more sophisticated. Teams that use a structured approach to work to priority, provide feedback on performance against expectations and continually build personal and IT capability are the ones that cope with peak workloads. The benefits of reduced stress, greater sustainability, minimised risk of accidents and increased job satisfaction make it well worth the effort. • Kerry Ryan is a Tauranga agribusiness consultant available for face-to-face or online advice and ideas. Contact him at www.kerryryan.co.nz

Dairy News august 27, 2013

agribusiness  // 27

Road from Paris leads to Otaki PETER BURKE peterb@ruralnews.co.nz

THE NEW head of

DairyNZ’s policy and advocacy group says with the growth of the dairy industry globally, the challenge for New Zealand is to work out how to harness that opportunity while still looking after our resources and maintaining them into the future. Kimberly Crewther (36) has just taken over this role previously held by Simon Tucker who’s now New Zealand High Commissioner in Canada. Crewther heads a team of 12 which includes water quality scientists and

Crewther spent two years working for Meat New Zealand (Beef and Lamb NZ) in the trade policy group before moving to Fonterra where she became their policy and advocacy manager for Europe, based in Amsterdam. “I led Fonterra’s relationship with European governments and industry, to grow and protect access and opportunity for Fonterra products in Europe. It was a big, exciting job to represent New Zealand dairy and Fonterra, and of course I travelled around Europe. The trip between Wellington and Hamilton each week is a little different from Amsterdam and Paris.”

Dairying is in Crewther’s blood. other specialists devoted to ensuring government and the private sector are engaged and informed about DairyNZ’s policy positions Crewther says the other big issue for the dairy sector is the Resource Management Act (RMA) reforms, which DairyNZ would like to see developed so that science, economic and social considerations drive the policy. “DairyNZ made a big investment over the last two years and in part of the team I lead within DairyNZ is a group of five water quality specialists whose job is to provide that scientific expertise that helps inform the policy processes.” Dairying is in Crewther’s blood. Her parents were dairy farmers north of Wellington but they later moved to the Manawatu where her elder brother Andrew Hoggard now runs the farm. She studied agriculture at Massey University and decided during a lecture by Alan Rae that she wanted to work in trade policy. “Allan Rae was talking about the Uruguay Round of trade talks and I decided I wanted to be involved in the next WTO round which would bring further benefits to New Zealand agriculture.”

The excitement of Europe was punctuated by another adventure – this time prompted by her husband, a professional rugby coach, Kane Crewther. He was offered a coaching role in Chile for two years just before she gave birth to twins. “Fonterra was good enough to provide a flexible working-from-home relationship for me which enabled me to go with him there for two years. I was Fonterra’s manager for sustainable dairy strategy at the time, working on issues including the ETS, biosecurity related policy and other topics. It also involved determining how Fonterra reacted with other organisations globally on sustainability. I was involved in the development of the global dairy agenda for action on climate change.” Today Crewther works in the Wellington CBD close to other industrygood organisations such and Beef + Lamb NZ, HortNZ and Federated Farmers, plus government departments and agencies she must interact with. The challenge is to inform and persuade central and local government policy makers to back policy with robust science. She also has another role –executive director of the Dairy Companies

Association of New Zealand (DCANZ) which represents all the nation’s dairy companies to government. But for Crewther, home is in the country about

70km from the capital on a small lifestyle block near Otaki. A far cry from the glamour and glitz and high-stakes politics of Brussels, London, Paris and Amsterdam.

Kimberly Crewther

Dairy News august 27, 2013

28 //  management

Gas halves dairy’s hot water bill TONY HOPKINSON

A NEW dairy shed hot water system running since June on a Bay of Plenty farm is reducing costs and ensuring adequate quantities of hot water are available when needed. The system was installed at the beginning of the season at Rowe Farms Ltd, Pongakawa, near Te Puke. So far the owners, Grant and Ngaire Rowe, are satisfied. “It is working well and I am amazed how quickly it can heat 600L,” Rowe says. The Rowes, Fonterra suppliers, have farmed here for 25 years, on 140ha (eff.) flat land. The soil is peat over ash which “hangs on well over the summer”. They have a 52ha run-off

6km from the farm that grazes young stock and is used for winter grazing for the herd. They recently bought the 120ha (eff.) farm next door, to run as a separate unit. Both farms will be managed by the same lower-order sharemilker. “At present I am helping with calf rearing, overseeing and filling in where necessary,” says Rowe. The combined farms will milk 830 kiwi-cross cows mated to LIC bulls and tailed off with Hereford bulls. Rowe says the season has started well with great weather, plenty of grass and the cows

calving quickly. The home farm has not had grades but Rowe knew he

needed to improve his water heating for the CIP system in his 40-aside herring bone shed.

Grant Rowe (right). Heating times are set on the control panel (left). Gas is supplied from a 210kg cylinder (below).

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a Bosch 32 LPG continuous-flow commercial water heater in a package, engineered and installed by Longveld On Farm, Hamilton. Longveld is now offering the system to all dairy farmers. Longveld managing director Les Roa says the system is capable of cutting dairy shed water heating costs by up to 50%. “It can heat 600L to 85oC in 60 minutes and is totally automatic.” Gas is supplied from a 210kg cylinder adjacent to the shed. Space is available there for a second 210kg cylinder. The gas is piped underground to the water heater mounted on the outside wall of the shed for venting. Heated water is circulated by a pump to and from a new 400L storage cylinder adjacent to the CIP and vat wash tank. Heating times are set at an adjacent control panel, with a manual override. The heater is thermostatically con-

trolled. Following each wash the cylinder automatically refills. The heater is set to switch on automatically in time to heat water for washing following morning and afternoon milkings and again if needed for a vat wash. With night-time pick-up the water can be available to clean the vat before the morning milking and set to reheat for the post-milking wash. Says Roa, “When we were investigating the benefits of the system we monitored electric water heaters and saw that in many cases the electric meter for the heater hardly stopped. With gas the water is heated only when the farmer needs it.” The system can be retrofitted to existing water heaters. Longveld claims such a refit can be completed during two successive days between milkings, depending on the required site work. Tel. 0800 566 483 www.longveld.com

Dairy News august 27, 2013

management  // 29

No room to cut corners “You need to ensure good coverage about 70% of dairy farmers preferring to use it, especially during early lactation of all four teats including the ‘face’ of the when wet, muddy conditions create front teats, which often get missed but an ideal environment for bacteria to are the ones most prone to becoming flourish. He adds that All four teats must be well covered with spray. chlorhexidene teat sprays have their place and are often used by farmers who have sensitivity to iodine in their herd, or simply just prefer that product over others. He says the best products kill bacteria and improve teat health. FIL says it has the only teat care range on the market that uses manuka honey in some products; this has proven anti-bacterial and healing properties. “The inclusion of manuka honey helps the spray adhere to dry and cracked.” Dirty equipment, using the wrong the teat surface itself, thereby improving teat condition generally, ensuring they dilution rate and using a spray mixture remain soft and supple,” says Gulliver. more than seven days old will jeopardise “Teat care and udder health [demand] the effectiveness of the teat spraying. “The cleanliness of your equipment is coverage, coverage, coverage.

critical to the effectiveness of your teat spraying programme.” Gulliver advises farmers to regularly wash and scrub spray and mixing containers regularly with only warm water, and to never use the same jug for measuring teat sprays and detergents. He says the same rule applies to farmers using iodine and chlorhexidene sprays because it is extremely important to clean equipment thoroughly when switching from one product to another. “Use different containers and mark them clearly, for example teat spray only or detergent only, or chlorhexidene or iodine only.” Incorrect dilution also changes a spray’s effectiveness and mixing requires particular care to make sure the right amount of water and solution are used. He adds that dilution rates may differ depending on the time of the season and weather conditions. “FIL has teat spray dilution charts to assist farmers to ‘get it right’, showing the different dilution

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rates for both types of sprays and what rate should be used throughout, early, mid and late lactation. “We can’t stress enough the importance of reading the instructions and carefully measuring the quantities – there is no room for guesswork.” Research shows that farmers who use the early lactation dilution rate (4:1) throughout the entire milking season will reduce the rate of clinical mastitis in their herd the following season as well as a reduction in the bulk somatic cell count. Cutting corners by mixing a big batch of spray to use over a week isn’t advised because the solution will lose effectiveness over time. “We recommend mixing new solutions regularly; the trick is to keep it fresh so no more than a couple of days supply at a time.” Tel. 0508 434 569

1. A Joe, S Cranefield, I Hodge and T Clarke. Summary of problems identified in 200 milking assessments from mastitis problem herds during 2008/ 2009 in two regions of New Zealand (Waipa and South Canterbury). IDF Mastitis Conference 2010.

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WITH RESEARCH indicating only 12% of teat spray applications are done correctly1 , says GEA Farm Technologies, farmers must choose the right products and perfect their application, to maintain udder health and prevent mastitis. GEA subsidiary FIL markets teat spray products. Mastitis costs the New Zealand dairy industry about $200m each year in lost earnings, the company says. The cost to individual farmers can include lost days in milk, milk quality penalties and culling of stock in acute or repeat clinical cases. Sanitising teats after milking has been a key component of mastitis control programmes worldwide for many years, and trials have consistently shown effective teat spraying significantly reduces the presence of mastitis-causing bacteria. FIL business and new product development manager Trevor Gulliver says the most commonly used teats sprays in New Zealand are iodine and chlorhexidene. While both are fit for purpose, iodine is currently the favoured sanitiser with

Dairy News august 27, 2013

30 //  management

Getting best bang for your fertiliser buck BALA TIKKISETTY

GETTING THE best bang

for your buck spent on fertiliser, while considering economics and the environment, should be a key goal for farmers. Finding a balance can be tricky for farmers. It requires advice from fertiliser reps and consultants as it’s technical: soils are a dynamic mixture of minerals, organic residues and living micro and macro organisms, all supporting farm production. So clear assessment of fertiliser requirements will improve economic returns from pasture and help avoid contamination of ground and surface water with nutrients, particularly nitrogen and phosphorus. Various tools can help

in this assessment. Nutrient budgeting is widely accepted as the appropriate first step in managing nutrient use and it’s the preferred tool for evaluating the environmental impact of farm management practices. Overseer, a computer decision support model, is used to advise on nutrient management and greenhouse gas emissions. It predicts what happens to the nutrients brought on to a farm in the form of fertilisers and supplementary feed, in the same way that a financial budget can track money. A nutrient management plan builds on the budget and identifies what the farmer will do to improve the efficiency of the farm nutrient system and minimise losses to the envi-

ronment. Various options can help reduce losses, depending on individual situations; many of them can be found in the ‘menus of practices to improve water quality’ on the Waikato Regional Council website. An understanding of the behaviour and fate of nutrients in the soil-plantanimal system helps in preparing a nutrient management plan, as does a plain-English knowledge of important terminology when using the Overseer model. Mineralisation involves conversion of soil organic nitrogen into plant available forms. Mineral N stands for nitrogen fertilisers used to directly supplement the nitrate and ammonium pools in soil.

Ammonification is the breakdown of organic nitrogen (from dung, urine and dead plant material) into ammonium ions. These ions are subsequently nitrified in the presence of a good oxygen supply to nitrate ions. Ammonification is carried out by a variety of soil microorganisms. Nitrification involves the biological conversion of ammonium to nitrate. Nitrate concentrations in aerobic, warm and moist cultivated soils are normally higher than ammonium concentrations, so in such soils the main source of nitrogen taken up by plants is nitrate. This is because in warm aerobic soils the rate of nitrification is rapid. In acidic soils nitrification is slow and ammonium is proba-

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Clear assessment of fertiliser requirements will improve returns.

bly the main plant nitrogen source. Immobilisation is the conversion of plant-available nitrogen into organic form. If the mineralisation rate is less than the immobilisation rate, then net-immobilisation occurs and pasture and crops growing in such a soil will become nitrogen deficient. Whether net-mineralisation or net-immobilisation occurs depends mostly on the carbon-to-nitrogen (C:N) ratio in the organic substrate added to the soil. Ratios of C:N less than 20:1 may result in net-mineralisation of N. De-nitrification involves microbial reduc-

tion of nitrate to nitrous oxide and nitrogen gas. This process requires, in addition to soil microorganisms, a source of nitrate and decomposable organic matter, and anaerobic conditions such as waterlogged soils. Volatilisation is conversion of ammonium to ammonia gas. This commonly occurs in animal urine spots and after urea application during high temperatures. In New Zealand, the common nitrogenous fertilisers are urea (46% N), ammonium sulphate (21% N), DAP (18% N) and calcium ammonium nitrate (27% N).

CONNECTING RURAL NEW ZEALAND

The form of nitrogenous fertiliser best used depends on the cost per unit N and the overall efficiency of the fertiliser N. The efficiency of fertiliser N varies between the fertiliser forms, which is attributed to the difference in the effects of fertilisers on the rate of uptake and assimilation of N, the losses of N through ammonia volatilisation, de-nitrification and leaching and the acidifying effects of N. • Bala Tikkisetty is a sustainable agriculture coordinator at Waikato Regional Council. Email bala.tikkisetty@ waikatoregion.govt.nz or tel. 0800 800 401

Dairy News august 27, 2013

management  // 31

Grass galore for cows pam tipa pamelat@ruralnews.co.nz

EACH MOUTHFUL a cow eats has 20% more nutrition than is usual at this time of year, says DairyNZ regional team manager Craig McBeth. The grass now available to cows is almost as high as a Red Band gumboot in Waikato, Taranaki, Manawatu and Canterbury. And it’s dryer than normal so the grass isn’t

spring rotation planning, he says. A paddock might look like it has about 2800-3000kgDM/ha cover, which usually means a cow needs about 2-3kg of supplement. “But really they won’t because of factors of high utilisation and high drymatter in the grass. It’s a great problem to have. “But as we always keep saying to farmers: look at the residual grass when the cows come out of the paddock and make sure you graze residuals down

“It is a different August from what we are used to – good pasture cover and very dry underfoot so there is less wastage of the grass that is there.” getting trampled. “It is a different August from what we are used to – good pasture cover and very dry underfoot so there is less wastage of the grass that is there,” McBeth told Dairy News. The cows aren’t trampling the grass into soft mud. “So there’s higher grass in the first place, the cows can eat more of the grass and the dry matter content is also a bit higher. “In relative terms, that is like a 20% increase in the actual amount of feed per mouthful of grass. If a cow comes along and gets a mouthful of grass today she is probably getting about 20% more dry matter than in a normal August.” Farmers need to take this into account in their

to 1500-1600kgDM/ha. If the cows are producing well and are content then that’s probably telling you they are being adequately fed even if the maths doesn’t add up for you. “What is happening is the cows are getting more feed than your normal calculations would indicate. “You are better managing 90% of your farm really well and shutting up 10% for silage at some stage or grazing it off for dry cows. Every farm is going to be different… but don’t lose quality across your whole farm which is easily done at this time.” McBeth says the risk to cutting silage at this time of year is the moisture content will remain high because you haven’t got good drying conditions.

in brief Director nominations open NOMINATIONS ARE open for two directorships on the DairyNZ board. Farmer-elected directors Barbara Kuriger and Alister Body, retire by rotation in October. Farmers paying a levy on milksolids to DairyNZ may stand for election, as may retiring directors, says returning officer Anthony Morton. Nominations must be received by noon on Friday August 30. “If more than two nominations are received, we will hold an election by postal, fax and internet voting using the single transferable voting method. Votes will be weighted by annual milksolids production,” he says. Voter packs will be mailed September 17 to all levy payers. “Internet, fax and postal votes must be received by noon Wednesday October 16 and the results will be announced at the DairyNZ annual meeting.” The DairyNZ annual meeting will be held on October 17 at Hawera.

“So wilting the silage down to a good moisture level to make good quality silage is a bit of a risk. If farmers are making silage as a management strategy, they probably should think about using inoculums to speed up the process and ensure a good ensiling process takes place.”

McBeth says it is a busy time of year with multiple mobs of stock, but farmers need to be thinking about their farming systems because they are dealing with conditions now which are similar to late September or early October. If they don’t manage the farm a bit differently

they will end up with pasture quality issues in September-October. That will affect the nutritional quality of the grass and the amount of milk that can be produced. Options for farmers include speeding up the rotation, using less supplement and nitrogen.

DairyNZ regional team manager Craig McBeth says too much grass is a good problem that needs managing.

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Dairy News august 27, 2013

32 //  animal health

Easing the spring calving load CALVING DIFFICULTY

(dystocia) is a common cause of economic losses on a farm. It can be prevented by strategies like ensuring that heifers are well grown prior to and after joining, making certain that cows and heifers calve in good condition, neither too fat

or too thin, managing the calves’ birth weights by using calving ease or sexed semen is a valuable tool, and ensuring supervision of calving cows is important. Knowing what is “normal” and when to assist a calving cow is extremely important. Both

front feet, followed by the head is a normal presentation. The quicker that you are able to identify that the delivery is not progressing, or that the calf is malpresented or oversized, the better the chance of a successful delivery. Vets have a few things in our bag of tricks that are

useful for the really difficult deliveries, but the large majority of calves that require assistance can be delivered without any special equipment. Calving jacks, pulleys or a variety of contraptions are great as a calving aid, though it must be remembered to use force judiCalving assistance is as much art as science.

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ciously. Just because you can pull that hard, doesn’t always mean that you should. A question that I am frequently asked is: “How do you know if a calf can be pulled?” Generally speaking, if a calf can be pulled up into the birth canal, and I can slide my arm down beside the head and shoulder, I would consider that I have a good chance of delivering that calf. I prefer calving ropes or lo-trauma calving straps to chains, but chains are more hygienic and are easier to keep clean. I frequently find that by simply using a soft head snare to keep the head up and the neck extended, I can easily deliver otherwise ‘unpullable’ calves. Another frequent error that I see farmers make is not using lubricant. Once the calf is dry, or if the cow’s birth canal is tight, trying to pull the calf without enough lubrication will cause tearing and bruising. Obstetrical lubricant is inexpensive and makes the process better for the cow and the operator. Cleanliness is another real deficiency I observe in many cases of calving assistance. Using clean water, with a non-irritating disinfectant agent to clean around the back end, tying the tail to the side, (or having an assistant hold it for you), and wearing disposable AI gloves whenever possible will dramatically reduce the amount of contamination of the birth canal with dirt and faeces and greatly reduce the risk of Metritis. Calving paralysis is a serious complication of either overly vigorous assistance or a hiplock occurring in an unobserved calving. Hiplock can often be prevented or

relieved by rotating the calf by 90 degrees to present the narrowest profile of the calf’s hips to the cow’s pelvis as the calf is delivered. Whenever a lot of manipulation of the calf is required, it is usually best to call the vet sooner rather than later. Once the calf is dead and the reproductive tract is contaminated or damaged and is swollen and dry, the job is much harder, and the outcome poorer. The best advice that I can give regarding a calving cow is this: Remember the ‘20 minute rule’. If you have been working on a calving cow for 20 minutes, and have made no progress, stop, reassess, call for assistance or try a new approach. Ensure that the cow is safely and adequately restrained. Never pull on only one leg, never pull harder than is necessary; patience and lubrication will prevent injuries. Promptly treat any maternal tears or injuries and providing excellent nursing care in addition to anti-inflammatories when cows have maternal paralysis will give the best welfare and economic outcomes. Calving assistance is as much art as science, Experience is the greatest teacher, but sticking to the ‘20 minute rule’ will mean that even an inexperienced operator will slowly improve their skill level without too many disasters along the way. Veterinarians have access to uterine relaxants and epidural anaesthesia that makes the process safer for the cow and the operator. • Rob Bonanno is a partner in the Shepparton Veterinary Clinic, Victoria, Australia and a past president of the Australian Cattle Veterinarians Association.

Dairy News august 27, 2013

animal health  // 33

Flood of challenges comes with big wet organisms and parasites increases. In many instances the animals can cope, although in severe circumstances, changes to their routine, management and environment can lift disease levels. This particularly applies to, for example, young stock, calving cows and those in early lactation. “And farm labour is often stretched at these times so the options for housing and caring for sick cows is limited. Measures to prevent disease are a high priority for staff.” Mastitis and lameness pose the most immediate health risks. And there are other stressors and environment related diseases more prevalent in the wet, affecting people, livestock, the environment and milk quality. To manage the risks:

■■

■■

■■

■■

■■

■■

Ensure staff are trained and facilities are adequate for handling stock safely Practice good hygiene after handling animals Consider the biosecurity implications before moving stock (and feed) on, off and around a farm Make provisions for disposal of dead stock to limit disease and environmental contamination Record the details of all treatments, including the cow ID Wet conditions and applicable withholding stress cattle. periods stock paint Use weather/mud-proof ■■ Seek vendor declarations when methods to identify treated cattle, i.e. tail tape may be better than buying in feed, seeking information

RAPID CHANGES to livestock diet need to be carefully managed to avoid health issues. ■■ Avoid rapid changes to ruminant diets. Introduce livestock to new diets slowly over 7-10 days ■■

Work with a nutritional adviser to check the new diet is balanced (energy, protein, fibre)

■■

Consider magnesium supplements for lactating stock if feed is in short supply

■■

Monitor feed intakes, the vat, milk test and dung when changing rations.

Take particular care with the transition diet for heavily pregnant cows. Cows undergoing a poor transition will suffer more animal health issues at calving, be less fertile and produce less milk during the following lactation. ■■ Heavily pregnant cows are more vulnerable to environmental stresses and feed deprivation

Extra support for mating than the milkers ■■

Ensure adequate (energy) intake to avoid pregnancy toxaemia

■■

Use a balanced transition diet to manage the risks of metabolic problems at calving. Downer cows are difficult to manage in wet conditions.

Toxins produced by moulds and fungi in poorly stored grain and hay can lead to abortions or liver damage in cattle. The toxins may still be present even if the feed is dry when fed ■■ Avoid feeding mouldy feed to livestock, particularly to pregnant and young stock ■■

Seek information through vendor declarations to manage the risks of buying in feed containing mycotoxins

■■

Arrange for suspect feed to be tested.

EXTRA STEPS may be needed to support cows getting in calf if mating coincides with wet conditions. Poor reproductive performance will severely limit recovery in the medium term. ■■ Feed cows well to limit body condition losses, especially in groups approaching mating ■■

Use aids to improve heat detection and reapply them frequently in wet weather

■■

Plan strategies with an InCalf adviser or vet for dealing with higher numbers of empty cows, e.g. extended lactations, extra bull power, early pregnancy testing and rejoining empty cows,

synchronisation programs at re-joining, etc ■■

Plan strategies for cows that will calve late next season such as milking them through or culling and ensure the farm has enough replacements

■■

Don’t forget the yearling heifers: make sure they are well fed and on target for joining and well maintained till they calve

■■

Plan ahead to provide plenty of bull power

■■

Minimise lameness in the bull team by frequently rotating bulls and keeping them off laneways and concrete yards, e.g. leaving them in day/night paddocks.

As the dry flow granules poured into the dispenser, I relaxed, knowing the herd was being looked after.

N

EW

T E

NZ

G Y

Dietary health issues

about growing and storage conditions. Also seek information on previous chemical treatments.

O

EXPECT MORE animal health issues in animals during prolonged wet weather, says Dairy Australia. Wet conditions stress cattle and tend to increase microorganisms in the environment, so herd managers can expect more animal health problems then. Dealing with large numbers of cows with health problems is time consuming and can be overwhelming. But most animal health problems that arise during wet conditions can be manageable if recognised early and addressed quickly. Wet conditions lead to stresses which can reduce cattle’s resistance to disease, such as changes to feeding practices, disrupted milking routines and exposure to wet and mud. And the challenge from disease-causing micro-

C

H N OL

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Dairy News august 27, 2013

34 //  animal health/feed

Drought-tolerant lucerne study wins grant SECOND YEAR Lincoln

University PhD student Geoffrey Smith has won a $5000 scholarship from Farmax to advance his research into the strate-

gic use of the drought-tolerant species lucerne as an alternative or complementary forage to ryegrass for Canterbury dairy farms. The inaugural scholar-

ship was open to all people eligible to do postgraduate research at Lincoln University whose research used Farmax software. Farmax general man-

ager Gavin McEwen said Smith’s research stood out because, though focussed on Canterbury it had the potential to help all New Zealand pastoral farmers.

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will examine the effects of different feed allowances of lucerne on milk solids production. All the results will be used to model animal and economic performance under different whole farm system scenarios, including the amount of lucerne in the milking platform pasture, with adjusted stocking rates, calving dates, supplement and nitrogen use. He says this would not be possible without the modelling capability of Farmax, which will be specifically used to model the economic effects on the base farm in the different scenarios. He expects to finish his research in 2014 and his PhD in 2015. He will seek to have his research published.

Calf-rearing challenges ease

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Stephen and Kerry Hickey (right) with Agri-feeds representative, Mark Benns.

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individuals and the country. Smith thanked Farmax for its support in furthering his research, which he hopes will one day translate into farm extension. Lucerne has been widely used on South American farms, on its own and within pasture mixes to provide quality feed to extend lactation and increase milk production, Farmax says. Smith says because Canterbury farms need irrigation in summer, and because water access, supply and irrigation grow more costly and unreliable, drought tolerant species can be used to make farming systems more sustainable and productive. His research project is in the second of three years. A farmlet study last season examined milk production, urinary nitrogen excretion off lucerne and ryegrass, and monitored the seasonal growth rates of lucerne versus ryegrass pastures. This summer Smith

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BELLOWING, SCOURS and thieving birds – all are history on a sharemilker’s farm where 120 Jersey calves are now fed RumenX calf feed, says distributor Agrifeeds. Sharemilkers Stephen and Kerry Hickey, at Te Kauwhata, began feeding the product in 2012, since when their calves have “thrived”, Hickeys were the first in their area to try it, after being told it would “increase farm productivity, save time and money, and improve calf development and health,” Agri-feeds says. They found it an easy feeding system to use, spend less time on feeding and are noticing more milk in the vat. “We no longer need to dip into our milk supply which means we are sending more milk to the factory and making savings of 200-300L of milk every day,” Kerry says.

Dairy News august 27, 2013

animal health  // 35

HIGH LEVEL DISINFECTION FOR ON-FARM USE

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Careful management of late dry cows can greatly reduce the risk of milk fever.

Reducing risk of milk fever MILK FEVER is a met-

abolic disease caused by low blood calcium levels. In New Zealand about 2% of cows go down with milk fever each year1 but there is a higher incidence on some properties and in some seasons. This year has been particularly bad in some districts. There are many risk factors for milk fever including: ■■ Genetics. Jersey cows are much more likely to get milk fever than Friesians. ■■ Milk production level. High producers are more susceptible because the fall in their blood calcium level is greater. ■■ Age. Older cows produce more milk and are less able to replace blood calcium quickly. Heifers are rarely affected. ■■ Diet. Feeds containing high levels of potassium and phosphorus reduce the cow’s ability to absorb calcium. Most milk fever cases occur within a day of calving. The birth process and colostrum production requires a lot of calcium and to meet the demand, cows must mobilise calcium from their bones and increase the amount of calcium they absorb from the diet. Magnesium is required for the production of hormones that control these processes and therefore supplemen-

tation of magnesium is critical in milk fever prevention. Late dry cow management Careful management of late dry cows can greatly reduce the risk of milk fever. Springing cows should not graze high potassium pastures (e.g. effluent paddocks or those recently fertilised with potash) or be fed pasture silage or hay made from these paddocks. The amount of high phosphorus supplements (e.g. palm kernel, broll or distiller’s grains) in the diet should be limited. The current DairyNZ recommendation is to feed 20g magnesium per cow per day from two to three weeks prior to calving until there is enough magnesium in the diet. This normally occurs somewhere between early November and Christmas2. Magnesium sulphate and magnesium chloride are more effective at preventing milk fever than magnesium oxide (causmag) however

they are less palatable. Keep to the recommended magnesium feeding rates. Too much magnesium can cause scouring and impact the uptake of other minerals including calcium. Also remember that although cows have significant stores of magnesium, they can only access what is provided in feed, so it is important to supplement magnesium on a daily basis. Management of calved cows Supplement cows with calcium (e.g. ground limestone) immediately after calving and as required throughout the lactation. The best way to determine calcium requirements is to test all feeds. While cows being fed low calcium supplements (e.g. maize or cereal silage or grains) are more likely to require higher rates of calcium, many high producing herds fed pasture-based diets are also calcium deficient. Keep dietary drymatter intakes up and continue to supplement magnesium until at least early November. The role of maize silage in reducing milk fever Maize silage has an important role to play in decreasing milk fever risk: Growing maize decreases soil potassium levels. Maize produces high yields and has a high potassium requirement. Research has shown maize

can be grown in high fertility dairy paddocks (including effluent paddocks) without the need for extra fertiliser. This produces low cost maize silage and drops soil potassium levels, reducing the risk of milk fever. Feeding high rates of maize silage to late dry cows reduces milk fever risk. Maize silage contains low levels of potassium and phosphorus. It can be used to help increase calcium absorption and decrease the risk of milk fever at calving. Maize silage is an ideal carrier for minerals. Maize silage is an ideal carrier for magnesium (pre and post calving), calcium (postcalving) and other minerals. Mineral wastage is much lower than for pasture dusting. Careful dietary management of cows in the late dry period and early lactation can reduce the risk of milk fever. Consider growing and feeding maize silage as part of your milk fever management plan. 1 Roche, DairyNZ, Preventing milk fever – are all magnesium sources equal? http://www.dairynz. co.nz/file/fileid/27279 2 DairyNZ Farmfact 3-1: Magnesium supplementation http://www.dairynz. co.nz/file/fileid/36336 • Ian Williams is a Pioneer forage specialist. Email; iwilliams@genetic.co.nz

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Dairy News august 27, 2013

36 //  mating management

Challenge sets up farmers to succeed A SCHEME to help farmers boost profits is said to be gaining support. The ‘6 Week Challenge’, developed by LIC, DairyNZ and other industry partners, equips farmers to improve their herds’ reproductive performance

and increase their 6 week in-calf rate. LIC reproduction solutions manager Greg McNeil says many farmers have registered, “for a range of reasons: some want a tool to train younger staff and more

experienced farmers want to brush up on skills. That’s great, because whatever they’re trying to achieve on-farm, the 6 week in-calf rate will contribute to their success. “It’s one of the most important measures,

Newborn calves at your place? Tag your animals All newborn cattle must be tagged with a NAIT approved RFID ear tag before they are six months old, or before they move off farm – whichever is soonest. Bobby calves going direct to slaughter are exempt. Register your animals Once tagged, you must register all your calves in the NAIT system within one week, or before they move off farm – whichever is soonest. Registration links individual animals to tags in the NAIT system so they can be traced.

To find out more go to www.nait.co.nz or call NAIT on 0800 624 843

and farmers are open to improving their herds, especially because there could be more money to make as a result, without having to increase cow numbers or land area.” The average New Zealand 6 week in-calf rate is 65%, whereas the industry target is 78%, this gap representing an opportunity for many farmers. McNeil says getting more cows in-calf in the first six weeks of mating can generate more profit through increased milk production, fewer empties and tighter mating and calving periods. “It also allows farmers to get more from their genetics and artificial breeding, with more cows carrying high BW calves; this increases selection pressure on replacements reared and increased culling option which speeds up genetic gain. “Whatever the farm’s

focus – growing, higher BW, more days in milk or selling stock – you’ll get there quicker by getting more cows in-calf in the first six weeks.” McNeil says the ‘6 Week Challenge’ was developed because research showed reproductive performance to be a top concern of farmers, in which they want more help. Seasonal in timing, it supports the DairyNZ InCalf Programme and encourages farmers to make incremental changes throughout the year to ultimately get more cows in-calf quicker at mating time. Opportunities each season include heifer rearing, body condition and nutrition, heat detection and bull management, all of which can set the cow up and give her the best possible chance of getting in-calf quicker. www.6weeks.co.nz

Check out our websites www.ruralnews.co.nz www.dairynews.co.nz

Greg McNeil

Heat detection workshops coming WITH MATING pending, now’s the time to refresh heat detection skills, says DairyNZ. It will run practical heat detection workshops next month on the skills and processes to ensure successful mating. The workshops cover: benefits of improved heat detection; motivating staff to detect heats; tools and resources to lift performance. “Whether you’re an experienced farmer looking to refresh your heat detection skills or wanting to equip your staff with the required skills, come to a workshop,” DairyNZ encourages.

Venues and dates Northland: Kaitaia, September 3; Kerikeri 4; Kokopu 4; Tangiteroria 5; Tomarata 5; Maungaturoto 6.

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CRV Ambreed has a series of heat detection training stops throughout the country. NORTH ISLAND Grab the opportunity for you and your staff to get cows into calf more easily by brushing up on cow health, nutrition, heat detection and mating management strategies. DATE Other South Island roadshow stops will be in Murchison, Grey Valley, Culverden and Oxford. Find all the details online at www.getyourcowsincalf.co.nz.

LOCATION

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Waikato: Morrinsville, September 3; Ngatea 4; Pukekohe 5; Matamata/Te Aroha 6; Gordonton/Taupiri 13; Putaruru, September 10; Te Awamutu 11; Tokoroa 12; Otorohanga 18; Bay of Plenty / Central North Island: Whakatane September 12; Waihi 13; Tauranga 19; Opotiki 20; Waikite/Rotorua 24; Reporoa/ Taupo 26. Taranaki: Opunake, September 4; Hawera 5; Stratford 18; Tikorangi 19. Lower North Island: Masterton, September 17; Woodville 18; Manawatu 19. Top of South Island: Havelock, September 23; Takaka 24; Murchison 25. Westland: Atarau, September 17; Kokatahi 18; Hari Hari 19; Westport 20; Te Kinga 26; Karamea 27.

Dairy News august 27, 2013

mating management  // 37

Hectic schedule of 85 calves a month RICK BAYNE

MOST DAIRY farms

plan their calving season: the Leppington Pastoral Company, New South Wales, plans its calving year. The farm has an extensive reproduction schedule which isn’t dictated by the season. Instead, about 85 heifers are reared each month for an average annual total of 1020. It’s a big undertaking but they are reaping the rewards. The farm doesn’t follow the traditional patterns of most Australian dairy operations – it also milks three times a day – but the USA-style and ‘think big’ formula is working.

used to identify success. The farm achieves a 24% pregnancy rate, well above the US average of 17%. Average conception rate is about 35% and average calving interval 13½ months “which we are comfortable with”, Perich said. Newly-born calves are tagged for monitoring and fed 2L of colostrum within the first four hours and a further 2L within 12 hours to increase immunity to disease. The calves are fed 6.5L of milk per day in split feedings. Baycox Cattle is also used to stop the coccidian parasite which causes coccidiosis. “We’ve been using that for years and it works well. You only have to give it to them once and

is worth it. “We’re getting about 38L out of them at the moment. That will go up to 41-42 litres later in the spring.” Perich says the farm concentrated on Holstein

Director Michael Perich says milking three times a day was based on US and Middle East systems.

cows producing A2 milk. “We produce for the fresh liquid market and find we get a better return with Holsteins,” he says. The farm supplies seven different processors, most of them with A2 Milk.

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“Our system may not suit smaller seasonal farms, but we have fixed costs and need the higher production.” it prevents the disease.” After being weaned off milk the calves have access to grazing land and are also fed a supplementary ration developed by a nutritionist. At about 12 months they are transported to the company’s 1200ha property, 7km south of the main dairy farm and then bred via FTAI. The dairy platform, a 36-a-side herringbone, was built 13 years ago and works 24 hours: three shifts of seven hours milking and one hour of cleaning. Perich says the decision to milk three times a day was based on USA and Middle East systems and while not common in Australia it is working well for the Leppington Pastoral farm. “We do it to get increased productivity but it also results in better cow health. Milking them more reduces pressure on the udder and lessens mastitis and cell count, currently averaging 130,000.” The intensive milking operation incurs increased costs in feeding and particularly labour but Perich says the higher production

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Director of the family-owned company at Bringelly, near Leppington, Michael Perich, says the emphasis on high levels of production works for the 600ha property which has 28 staff and milks 2000 Holstein cows. “Our system may not suit smaller seasonal farms, but we have fixed costs and need the higher production,” Perich says. The milking herd is averaging 12,000L/lactation, annually producing about 24 million L. Leppington Pastoral produces A2 milk and aims to keep all A2 producing heifers. The reproduction system is based on artificial insemination. “We want better genetics and see A.I. as the best way to achieve this,” Perich said. Leppington Pastoral is using more fixed-time artificial insemination (FTAI), particularly on heifers. As part of a Prosynch FTAI program, the Bayer Cue-Mate helps cows struggling to cycle. “We have good success with that,” Perich added. Pregnancy rates – again based largely on USA systems and calculated on heat and conception rates – are

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Dairy News august 27, 2013

38 //  MATING MANAGEMENT

Pleasant surprise in fertility benchmarking AUSTRALIAN FARMER Sophie

Hester was pleasantly surprised when she saw the first Genetic Progress Report for her herd. Sophie and her brother, Alistair Harris, help run the Larpent property of their parents, Phillip and Kate Harris, milking 550-600 cows depending on the season. The herd, which she describes as “commercial Holsteins, with a pinch of cross-breds”, averages 9000L/year from a predominantly pasture feedbase. A self-confessed ‘cow-person’, Hester manages the herd and the breeding program. Each season she uses up to 25% progeny test sires as well as six or seven proven bulls. “In the long term we are aiming to improve overall type but particularly rumps, udders, longevity, feet and legs. Our cows do a lot of walking – the fur-

thest paddock is 1½ km each way – so they need good feet and legs. I visited America recently and noticed how little walking their cows do, so it is definitely something to look for in the bulls we choose,” she said. Hester was pleasantly surprised by the results in the herd’s Genetic Progress Report. It showed steady improvement for all traits over the past 10 years, with the herd tracking on or above the national average for all seven traits. Strong gains in genetic merit for profit (APR) have been seen in recent years. This is hardly surprising: her Genetic Progress Report shows that 87% of cows born in 2010 were from bulls listed in the Good Bulls Guide or progeny test. So, even with a focus on type, all bulls used ranked well for Australian Profit Ranking. The Good Bulls Guide ranks bulls

on profit (APR) and then re-ranks bulls on key breeding objectives. This means bulls can be selected for a particular breeding objective, without compromising profitability. “Our Genetic Progress Report was a bit of an eye opener; to see just how much progress we’ve made. It confirmed that our approach in selecting for type, has also achieved steady progress for other traits, especially profit and longevity.” She was particularly pleased with the herd’s genetic progress for fertility. Since 2004, the herd’s genetic progress for fertility has steadily improved and is now sitting above the national average. Michelle Axford from the Australian Dairy Herd Improvement Scheme says “this is no easy feat and it shows Sophie’s long term commitment to fertility.”

Hester says she had looked at daughter fertility when selecting bulls for the past couple of years. “It’s in our top four or five priorities. And it’s pleasing to see that has made a difference,” she says. The herd’s graph for mastitis also shows strong improvement in the past few years. “The mastitis improvement was a surprise because we haven’t paid a lot of attention to mastitis when selecting bulls. Now that I’ve seen the graph, I will probably pay a bit more attention to that in the future.” Hester was interested to see the year to year fluctuations in the herd’s graphs for fat and protein production. She puts the variation in fat and protein down to using certain bulls that rated very highly for type but were negative for components.

“Now that I can see the impact on the herd, I’ll be a more wary of those sorts of ‘risky’ bulls in the future. And once I short-list bulls for type, I’ll take a closer look at their ABVs for components.” Hester is looking forward to receiving a Genetic Progress Report for the herd each year. “It is the first time we’ve had a tool to track genetic progress at the herd level. Herd recording gives us lots of information at the cow level, but when you have a big herd it’s good to be able to see the bigger picture.” “I will be really interested to monitor the impact of our selection decisions from year to year.” Axford says that a Genetic Progress Report was derived from herd test data.

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Sophie Hester on her family’s Larpent property.

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A NEW tool enables dairy farmers to track the impact of breeding decisions and changes in their herd’s genetic merit over time. Developed by the Australian Dairy Herd Improvement Scheme (ADHIS), the Genetic Progress Report also allows dairy farmers to compare their herd’s genetic merit with the average and top 10% of their breed in the country. The report includes a summary of 10-year trends, including traits that have improved, remained stable and reduced in the herd. It also includes indicators of the herd’s genetic merit for profitability and its rank out of all Australian herd recorded herds for the breed. Seven graphs track changes in the herd’s genetic changes since 2001 for profit, type, longevity, mastitis resistance, fertility, protein and fat. ADHIS extension manager Michelle Axford says farmers were using the report to identify breeding areas that have performed well and those they wish to improve. Once they have identified the traits they want to improve through breeding, The Good Bulls Guide can be used to identify suitable sires. “This is the first time Australian dairy farmers have had an independent, science-based assessment of genetic progress, drawing upon the herd’s own data.” ADHIS is running workshops and attending many field days in dairying areas. www.adhis.com.au

Dairy News august 27, 2013

MACHINERY & PRODUCTS  // 39

Fieldays chief turns hand to demolition TONY HOPKINSON

A FEW swings with the digger and National Fieldays president Lloyd Downing began the old Mystery Creek admin building’s descent into oblivion. The 15-year-old building’s demolition on August

15 followed the June 2013 opening of the society’s new headquarters. “It had served its purpose after having a floor added and being swapped and changed around over the years,” says Downing. “And it had recently developed some special ‘water features’.” Photos, memora-

bilia and historic wooden panels and features were removed and will go to a new Fieldays museum. The adjacent Interlok building will stay. “The building’s removal makes way for the next stage of development in the ‘master plan’, a 20-year blueprint for the Mystery Creek Events

Centre,” says chief executive Jon Calder. The society plans to expand the Village Green area during the next five years and to build new exhibition space.

National Fieldays Society president Lloyd Downing (right) and chief executive Jon Calder at the demolition site. Lloyd Downing kicks off the demolition (above).

‘Bullet proof’ machines do the job TONY HOPKINSON

RITEWAY CONTRACTING may be

somewhat new in town but owner Allen Wright

Allen Wright

has all the experience it takes, he says. “I had done a lot of driving for big contractors in Waikato and Bay of Plenty and thought ‘If I want my own business,

now’s the time to start’.” Now in its third season, operating up to 20km from Hikutaia (PaeroaThames), Wright majors on soil preparation for crop planting, grassing,

mowing, and bale trucking and stacking. His main machine for ground preparation is an Alpego KP Rotopick with a Delta 2-300 pre-ripper on the front. This has four legs with delta wings for lifting and shattering subsoil and preventing panning. “With this machine I can get into ground a lot earlier and it is a single pass unit so crops such as maize can be planted immediately.” The earlier start puts crops up to two weeks ahead of other ground cultivation methods. It works well in heavier clay and into sprayed out pasture, doing less damage to soil than power harrows, Wright says. After doing 300ha last season he has now bought a second

machine. Following maize crops he uses Alpego Maratona discs to incorporate trash and cultivate soil usually to about 50mm depth. He uses a Duncan roller seeder for planting grass seed, chicory, turnips and other small seeds.

the time Dairy News spoke to him. “I looked at several different brands but these had all the features I wanted.” On the MF7615 Wright ordered front suspension, linkage and PTO. It has a Datatronic monitoring system useful for mea-

“With this machine I can get into ground a lot earlier and it is a single pass unit so crops such as maize can be planted immediately.” He started the business using a tractor leased from Osborne Sales and Lease, Morrinsville. Now he owns two Massey-Fergusons: an MF6475 (165hp) he’s had for a year, and an MF7615 (174hp) new at

suring ground covered and, most importantly, for checking fuel consumption. “Running costs such as diesel are going through the roof so I have to monitor its use.” Both machines are low users of fuel even

under load, he says. The latest model is fitted with a Dyna6 Transmission with a road speed of 40km/h. “I generally work only a short distance from base so this is all I need.” He has one full time woman driver and employs casuals when necessary. Because tractors are easy to drive staff do a better job and training casuals is easier. “The machines are bullet proof and doing everything I want them to do.” Wright buys his tractors and contracting equipment from Piako Tractors, Paeroa, and appreciates the service of manager Graeme Pedersen. Tel. 027 487 6510 www.piakogroup.co.nz

Dairy News august 27, 2013

40 //  machinery & products

Teat spray photo bags silver award A PHOTOGRAPH of a WETiT teat sprayer has won Tuakau photographer Jan Maree a silver award. “I shoot WETiT’s new technology for marketing and advertising purposes,” she says. “We ended up having to shoot this at night to get the spray to pop. It was worth the long, cold hours and difficult lighting setup to achieve this image.” WETiT Teat Sprayers, at Onewhero, has won several business awards over the years. Maree says she is “passionate about commercial work being more than just an accurate rendering of an object”. Australian judge Kylie Lyons, one of five judges, says the work was technically strong, showed creative flair in the use of lighting and was a great interpretation of an item equipment one may find covered in manure in a cow shed. Maree won the silver award in the commercial category at

The competition is to further improve the standard of auctioneering.

the national New Zealand Institute of Professional Photography (NZIPP) Iris Awards held in Auckland recently. NZIPP is the qualifying body for professional photographers in New

Zealand, covering wedding, portrait, and commercial disciplines. It watches members’ adherence to high standards of creative and business practices. The Iris Awards are an annual event.

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Young livestock auctioneers try themselves out FOLLOWING A successful inaugural event, the Heartland Bank Young Auctioneers Competition returns to the Canterbury A&P Show in 2013 with entries now open. The competition is to showcase and develop young livestock auctioneers and improve the standard of auctioneering. Judging includes a test of auction rules and a mock auction, each entrant being required to sell three lots of heifers/bulls. Entrants get notice of lots to sell and access to the breeder. Judging includes their voice, diction, manner and values. An interview evaluates their communication skills and knowledge of the terms and conditions relating to livestock auctioneering. Competition convenor Mick Withers says that the competition has gone nationwide. The inaugural event last year was for South Island entries only. “All entrants from 2012 [were pleased with] the competition including the opportunity to sell in front of a large crowd, iden-

tifying their core strengths and improving their understanding of auctioneering law. All [want to take part] in the 2013 event.” Last year’s winner, Glenn Peddie, of Peter Walsh & Associates, travelled to the 2013 Sydney Royal Easter Show to see the finals of the Australian Young Auctioneers Competition. “The Australians enthuse about pushing young people to succeed in the industry. I got heaps out of the competition…. It’s made me look at auctioneering differently and given me a new focus for improving my skills. I have had positive comments that my auctioneering has improved as a result.” Entrants will be competing for the New Zealand Stock & Station Agents’ Association (NZSSAA) Young Auctioneers Trophy, $2000 in travel from Heartland Bank to enable the winner to attend the Young Auctioneers Competition in Australia and a $500 Swanndri clothing voucher. Entries are now open. Tel. 03 343 3033

Best animals on show SHOWING ENTRIES are open for the

2013 Canterbury A&P Show, with 3000 animals and close to 1000 competitors expected to compete in 1700 classes including sections for beef and dairy cattle and other animals. Dog trials, shearing and wool handling, woodchopping and vintage machinery are also on the agenda. The event is a showcase of New Zealand’s best animals and talented competitors. Exhibitors will compete for $100,000 in prize money. Canterbury will subsidise exhibitor subsidies, offered to North Island and

Southland exhibitors who have to travel great distances to attend the event in Christchurch. “We consistently attract about 7000 livestock and equestrian entries each year. “Coming off our 150th anniversary celebrations in 2012 we are keen to increase entries. “Our aim is always to exceed the previous year’s entries and with the development of new classes and competitions offered this year, we are on track to achieving this” says Canterbury A&P Association president Mark Fleming.

Dairy News august 27, 2013

machinery & products  // 41

Classic Cars up for grabs DRAWING ON two decades of involvement with the local classic car scene, NZ Classic Car has selected 30 gorgeous classic cars to feature in a “best of” book by the same name. Celebrating the passion Kiwis have for their classic cars, this new book features a breadth of cars including Kiwi favourites like the Ford Zodiac, Morris Minor and Holden

Monaro, as well as modern classics like Ferrari’s stunning F40 and marques such as Aston Martin, Alvis, Alfa Romeo, Lotus, Alpine and Triumph. Plenty of pages are devoted to US cruisers and the mighty V8 engine as well, including the iconic split-screen ’63 Sting Ray, the Cadillac Coupe de Ville and Ford’s famous Skyliner — all lavishly photographed.

Combine the photography with authoritative text and you have Classic Cars of New Zealand — a celebration of Kiwis and their classic cars. Dairy

News has three copies to give away for Fathers’ Day at www.dairynews.co.nz

A Holden Monaro featured in the book.

Help to decide which calf to put on show is available at www. calfclub.co.nz

Calf club help only a click away MANY RURAL children are now deciding which calf to take to Calf Club, says LIC, whose dedicated website helps them to decide. The co-op’s website www.calfclub.co.nz also includes details of the annual Calf Club art competition for rural primary schools and children with calves. Prizes include iPads, calf care hampers and a Stallion mobile feeder worth $6500. Entries close October 14. Since its launch in 2003 the website has shown how to select, train and show calves. Thousands of students visit the site each year, LIC says. “Teachers and parents simply don’t always have the time… when their children have questions about calves or lambs,” says spokeswoman Clare Bayly. “The website provides the kids with the answers they need… to apply their learning in the paddock with their pets.” LIC has written to rural schools encouraging them to use the website with their students and to add their event. LIC staff can then attend and present a champion ribbon. “Calf Club is a rural tradition in New Zealand, and although it now tends to be known as ‘livestock day’ or ‘pet day’, the objective and popularity of the events remain in rural communities. “The events celebrate the special bond that develops between children and young animals and helps foster life-long values such as motivation, commitment, responsibility and compassion.”

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Dairy News august 27, 2013

42 //  machinery & products

SatNav offers live traffic updates as you drive THE AWARD-WINNING Kia Sportage SUV has arrived in the form of European-built 2L models – the first from the company’s factory in Slovakia to be sold in New Zealand. Kia Motors New Zealand is also looking at other products. The Sportage Euro is largely the same as used to be made in Korea, but with changes and additions, notably factorysupplied SatNav for the first time in any new Kia sold in New Zealand. It will be standard on the Sportage Limited diesel model and available on other Europeanbuilt models to order. SatNav gives the driver access to the SUNA Live Traffic Update – real-time traffic information in the Auckland, Wellington and Christchurch regions. SUNA monitors roads via the SatNav system and provides alternative routes. Says Todd McDonald, general manager of Kia Motors New Zealand, “SatNav and the SUNA [is] an additional benefit [to] improve the driving experience and shorten journey times.” SUNA last the life of the Kia SatNav

system; the navigation maps will be updated and supported by Kia New Zealand free for the first three years of ownership during the vehicle’s annual service. SatNav in the Sportage Euro has a 7-inch touchscreen, said to be one of the easiest factory-installed systems to use. Other new features on the Sportage Euro include smart cornering lamps, aero blade front wipers and an Active ECO mode on the diesel automatic to economise on fuel. The rear reflector cluster has twin fog lamps and there is a slight variation to the lower rear bumper design. Interior variations include a new leather seat stitch pattern and colour for the Limited diesel model, new headrest design, central locking button on both driver and passenger doors, lockable glove box, a digital clock now incorporated into the audio display, more soft-touch materials and airconditioning giving hot and cold air from seven vent modes. The Euro Kia has a 2L petrol engine or 2L R-series diesel unit, driving via a 6-speed automatic transmission, and a

The Kia Sportage Euro – the first Kia in New Zealand with factory SatNav and SUNA.

2.4L petrol engine and 6-speed auto in the Korean-built models. The Sportage Urban models will also continue to be front-drive only, whilst

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The driver can also choose to lock the two axles 50:50 on the AWD models, to increase traction. Price: from $34,240 plus on-road costs.

Fit a camera, save a child A REVERSING camera is now available for retrofitting to used cars. Most cars in New Zealand don’t have such safety features, the distributor says. The Gator reversing camera is described as affordable and easy to fit; it is stocked by auto retail outlets nationwide. “This child life-saving technology has been

“Our cows can be inside sometimes for 24hours a day when the weather is bad. They are quite and happy. There is no waste of feed, and they need less food, because they are not using energy to keep warm and the pasture is protected.” Dairy Farmer Quote “We’ve got virtually no pugging damage and we’ve got more grass now than I think we’ve ever had” Beef Farmer Quote

restricted to buyers of new cars or has been an expensive after-market option,” says the supplier. Models are available to suit 12V and 24V electrics. The miniature all-weather camera mounts behind the rear number plate or onto a bumper or tailgate. The images can be transferred via a wire connection or a wireless system.

Vehicle owners can either choose a model with a free-standing 3.6” monitor with a suction mount for windscreen or dashboard, or a model with its screen in a rearview mirror that clips over the vehicle’s existing mirror. The rear-view mirror model has a 4.3” display about the same size as many portable GPS units.

Power can come from a cigarette lighter socket or other outlet. The driver switches on the system prior to reversing. The monitor provides a view up to 120-degrees behind the vehicle. Reversing camera can now be fitted in old cars.

FREESTALLS

SHELTERS

FEEDPADS

Low maintenance

Low environmental impact

Low cost flexibility

The future of productive farming www.herdhomes.co.nz M + 64 27 499 0123 P + 64 7 857 0528

NZ Patent Numbers: 521150, 544190, 550635, 545042. Further patents pending. International Patent Numbers: 2003267874, 03748807.9. Further patents pending

E YOU PLAY IT R R U S E I K GHT A M

AT DRENCHING Q: Why should I choose an oral drench instead of a pour-on?

5

A:

Pour-on drenches are often used for cattle because they’re easy to administer. But the way the drench is delivered can have a significant effect on how well it works.

DRENCH ORALLY

We recommend using orals for as long as you can do so safely.

5 Oral drenching is the best way to kill worms in cattle. That’s why we recommend drenching calves orally to optimise growth rates. Trials1,2 have shown the absorption of pour-on drenches across the skin can be affected by temperature, licking, moisture, dirt in the coat, rain and application technique – and all these factors can undermine the effectiveness of the drench.

Q: When should I start drenching my calves?

A recently published New Zealand trial3 found that the efficacy of moxidectin was significantly lower against Cooperia worms when the active was administered by pour-on or injection, compared with oral dosing.

Rumen bypass occurs where a suckling calf drinks milk, and the suckling stimulates a valve-like mechanism in the gut to take milk straight to the true stomach (abomasum). If calves are drenched while they’re suckling, drench is likely to be delivered straight into the true stomach as well, where it will be absorbed faster than intended. Rapid absorption of drench is one of the risk factors for toxicity. If a calf’s diet does not consist of enough grass/meal, the rumen may not be developed. The thin wall of an immature rumen will absorb drench faster than intended.

As well as the risks associated

Q: Is it safe to drench while calves are suckling from the milk-feeder? A:

with rapid absorption, if you drench calves while they’re suckling from milk-feeders you risk dosing some twice and missing others out completely. This could result in overdosing

No!

some calves and leaving others

The practice of drenching calves as they suckle from a calfeteria or milk feeder (i.e. pulling them off the teat one at a time and drenching orally) is common but not advisable. With the ML/mectin drenches in particular, this puts calves at risk of toxicity. These drenches are designed to be delivered into the rumen where they can be absorbed slowly.

undrenched.

A:

Calves don’t need to be drenched until they’re likely to have a worm burden. That isn’t likely to happen until pasture has been their main feed source for at least three weeks. Until then, you’re likely to be wasting your drench on calves with no worms!

Deal to worms in your dairy calves. Drench right. Choose COOPERS. For advice on best-practice drenching, visit www.coopersonline.co.nz or scan the code to take you straight there.

References 1. Forsyth, BA et al. Seasonal variation in anthelmintic response by cattle to dermally applied levamisole. AVJ60, (5), 1983. 2. Sargison, N et al. Relative inefficacy of pour-on macrocyclic lactone anthelmintic treatments against Cooperia species in Highland calves. Veterinary Record 164 (2009) 19, 603. 3. Leathwick, D M & Miller, C M. Efficacy of oral, injectable and pour-on formulations of moxidectin against gastrointestinal nematodes in cattle in New Zealand. Veterinary Parasitology 191 (2013) 293-300. Registered trademarks. Phone: 0800 800 543. CALF-256-2013. CAUTION: Do not use ALLIANCE or CONVERGE in calves less than 100kg liveweight. Do not drench with milk or milk-feeders, or while calves are suckling.

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