Dairy News 10 Sept 2013

Kiwi infant formula makers struggle in China. Page 3

passion for friesians Cow care vital Page 40

rising to the occasion Fencing floats clear of floodwaters Page 54

september 10, 2013 Issue 298 // www.dairynews.co.nz

super spring Phenomenal pasture growth, strong milk flows make great start to 2013-14 season PAGES 5, 6, 13

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Dairy News september 10, 2013

news  // 3

Kiwi value added products risks failing in China pam tipa pamelat@ruralnews.co.nz

HIGH PROFILE media coverage is

A2 milk unaffected by botulism scare. PG.11

Kiwi entrepreneurial spirit lures research. PG.20-21

Bumper crop of heifers. PG.38

News �����������������������������������������������������3-26 Opinion ��������������������������������������������28-30 Agribusiness ������������������������������31-32 Management ������������������������������34-42 Animal Health ��������������������������43-49 Effluent & Water Management ������������������������������ 50-61 Machinery & Products ������������������������������������� 62-66

needed in China to get the message out that infant formula products are safe, says Chris Claridge from the NZ Infant Formula Exporters Association. The New Zealand Government needs to take the lead and Prime Minister John Key should visit soon, with industry people, he says. Claridge is highly frustrated that he cannot seem to get his message heard in New Zealand: our products are still at high risk because the Chinese consumer still thinks New Zealand infant formula is poisoned. Meanwhile New Zealand’s competitors are cashing in. Claridge made the comments to Dairy News from a mother-and-baby store in Guangzhou province where he was hearing first-hand the concerns that remain about New Zealand products. He had met with 50 retailers the night before. Carrickmore Nutrition, of which

Claridge is managing director, faces a to have industry people involved othloss on sales of at least 30% over the erwise it just becomes a general discussion about New Zealand; it has to next three months. “What is clear is all New Zealand specific about products and infant brands are affected. The subtlety formula. Claridge says the issues of prodof Fonterra, wpc, botulism is completely lost on the Chinese. All they hear is New Zealand, infant formula poison. “I don’t know how I communicate back to New Zealand – I have been trying – this affects our ability to sell in China.” In New Zealand everyone understands it was a false alarm, but not so in China. “All they hear is our infant formula Chris Claridge is contaminated. The distributors and the retailers are starting to uct being unduly held up at Chinese understand it was all a false positive, ports seem to have resolved itself. but the consumers have not heard “The issue here is to keep selling. The main purpose of my trip to China is that message. “It is the same story – bad news to assure our distributors and retailgets publicity, good news doesn’t. ers that our product is safe and it isn’t We need the Government to take the contaminated. “I am meeting my retailers and lead in China and get media coverage distributors, we’re in 2100 stores in that our infant formula is safe.” The offer from John Key to visit China. I am standing on a street in China should go ahead. But it needs China going from city to city to try

to explain to all our retailers and distributors in the period I am up here that there is nothing wrong with our products. “Meanwhile all the other international brands – France and Australia – are busy trying to capture this market. On September 23 a French label in association with the French Government are flying 20 or 30 journalists from Shanghai specifically to show them their infant formula industry.” Claridge asks, “Does New Zealand understand what its lack of coordination and coherent approach means? It means our capacity to sell is reduced. Sure we can sell bulk powders to the market but our ability to sell added value retail products in this market is at high risk. “China is a huge place: just because we publish a few articles in the New Zealand media that it was a false positive, does everything get changed to normal? The answer is ‘no’. That message is not out in the media in China.”

Fonterra’s top brass in damage control FONTERRA’S CHIEF execu-

tive Theo Spierings and the directors are in China this week to start trying to repair the company’s reputation following the botulism food safety scare. Meanwhile the operational review on the precautionary recall released in New Zealand last week has been translated into Chinese

in-house, in an attempt to ensure the correct information comes out in China. Spierings says they are translating it into Chinese themselves “because we are seeing over the last events that once we issue things in English and they get translated on the other side of the ocean, possibly different meanings are introduced

in the Chinese translations”. The translation was due to be completed early this week. Meanwhile Spierings, the directors and the chief financial officer, Jonathan Mason, were due late last week to leave for a week-long visit to China. They are spreading out into three groups, one each for the

north, east and south to talk will local authorities, customers and consumers, says Spierings. “We will make ourselves available to start our reputation strengthening.” The co-op’s operational review was completed and a report released last week. @dairy_news facebook.com/dairynews

Dairy News september 10, 2013

4 //  news

‘Perfect storm’ flips Fonterra’s boat PAM TIPA pamelat@ruralnews.co.nz

FONTERRA WAS hit by

a ‘perfect storm’ of unrelated events and mistakes leading to the recall of whey product potentially contaminated with a lethal bacteria. This turned out to be a false alarm. These included a missing piece of plastic which initially lead to the reprocessing of WPC80, the use of non-standard equipment for that reprocessing, and a one off delay in information sharing which lead to a delay in testing. Computer systems in Australia had just been upgraded when the recall was launched and staff lack of experience with the system lead to delays in tracing the product once the recall was underway. “Global recalls are never related to one event,”

says Spierings. “This is the result of a number of separate and unrelated events occurring in an unforeseen sequence. When you compare it to other crises this is always the case – there are always four or five events related to a crisis.” However, as pinpointed in the operational review by group director of strategy Maury Leyland, the issue was not reported to the chief executive early enough. Spierings was told at 11pm on August 1, 24 hours after the AgResearch results indicated a potentially lethal clostridium botulinum and a month after that testing was commissioned. Spierings said he should have been told at the latest when the sample went to AgResearch to test for botulinum in June, and arguably earlier than that when elevated readings indicated there could have been a

problem. “I am not saying I have the wisdom, but what you normally do is sideline the product which is in the pipeline, you call your customers and say ‘park it for now’. You do further testing and because it was such a rare example of botulinum in this part of the world you would have got the results from AgResearch and you would

have got a second opinion. “Because it is so rare, it’s so unique in this part of the world, you would have asked the question ‘should we have a second opinion?’. That’s the end of June, not the end of July.” Fonterra has now created a new role, group director of food safety and quality, reporting directly to the chief executive;

strengthened the remit and scope of the co-op’s food integrity council; and launched an internal food safety and quality hotline for staff and contractors to report concerns about potential food safety risks. It has also completed quality audits at sensitive nutritional plants, including Hautapu, the source, the scare.

Fonterra chief executive Theo Spierings (left) and communications director Kerry Underhill front up to the media.

Hats off to a better co-op – Leferink FEDERATED FARMERS Dairy chairman Willy Leferink says he is “heartened” by the findings of Fonterra’s operational review in the wake of the WPC80 contamination scare. “Fonterra will be a better cooperative for it,” he told Dairy News. He applauded the promise to increase transparency, internally and externally, to improve information flows and the speed of

escalation of such incidents. “What worked well in this was the product recall. I take my hat off to Fonterra for that. At the time all the focus, the media speculation, was on the dirty pipe, not the recall, but that was the really important bit.” Leferink says he doesn’t expect heads to roll as a result of the findings. “I’m totally opposed to that. There aren’t enough people in this

industry as it is and people learn from their mistakes. Experience is hard to replace.” During last week’s media briefing on the operational review findings, Fonterra chief executive Theo Spierings said the future of the two managers put on leave shortly after the contamination crisis became public was a separate issue from the operational review. They would remain on leave until the

outcome of the directors’ review due late September. However, on the issue of escalating food safety issues to the right levels, “there are definitely certain questions around people and they are on leave until the review is concluded” he added. Leferink says everyone will await the outcome of the three remaining reviews. – Andrew Swallow

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Dairy News september 10, 2013

news  // 5

Handle early silage with care andrew swallow

TAKING EARLY silage

this spring may help avoid a costly long-term loss of pasture quality, say rural professionals, as pasture covers nationwide reach unseasonably high levels. But extra care’s needed in ensiling to ensure what’s conserved is worth keeping, they stress. “The first thing to check is whether there’s a genuine surplus,” says Dairy NZ’s productivity team leader, Rob Brazendale. “Those who monitor pasture growth will be able to identify that with their feed wedge.” Any pasture heading for a cover exceeding 3200kgDM/ha before the next grazing is a likely candidate for taking out of the round and cutting when there’s a good forecast. “One of the advantages at this time of year is the feed quality doesn’t deteriorate so quickly so you can be a bit more patient waiting for the weather.” Another advantage is contractors are likely to have less work, so should be more flexible with timing, he adds. “You really need three days of clear weather forecast.” Cutting a smaller area at any one time is advisable to reduce risk, but

with smaller areas, filling pits completely may not be possible so making baleage and leaving the pit to the main cut may be a better bet, he suggests. He also recommends using an inoculants – “one tested and proven in New Zealand conditions.” Independent nutritionist and silage specialist Trish Lewis says the inoculant should be a fermentation enhancing one, as opposed to a stabilising type product. “You want an inoculant that’s got lactic acid producing bacteria in it that speeds up the fermentation.” Whether to make pit or bale silage depends on what can be made best, she suggests. “Pit silage can go in slightly wetter, though modern balers are better at handling wet material.” As always, rolling the pit to get air out, and sealing it well, is essential, but with wetter material care needs to be taken not to over pack it, she adds. Taking silage now will not only start to rebuild feed reserves raided during last season’s drought, but will protect production down the track. “If you don’t [cut it], next time it’s grazed the pasture ME’s going to be down and the fibre up, and recently calved cows are already challenged with

the amount of dry matter they’ll eat, so their energy intake ■■ Identify looming surplus with feed wedge. will be even less.” ■■ Contact contractor in good time. An option for ■■ Shut up driest paddocks. those still calv■■ Raise mower – easier wilt and less soil ing is to give newly contamination. calved cows the first bite at any lon- ■■ Use fermentation enhancing inoculant. ger-than-ideal pad- ■■ Bales are a better bet than part pits. Pasture covers around the country have reached unseasonably high levels. docks, then bring has already taken two cuts. the remaining dry cows in If it’s under the grass you health and safety. Make plating shutting up padTalking to contracto clean up. But for many docks for silage at this time sure you tell the contractor can’t see it.” tors in good time is vital, that opportunity is almost A forgotten waratah about any hazards there of year, make sure they’re past and ensiling surplus is a point echoed by Rural stake or hot-wire stanmight be in the paddock… your drier ones,” he told Contractors Association now the way forward. dard can seriously damage stumps, tomos, lumps of Dairy News. president Steve Levet. Lewis says she has one concrete, holes, wet spots. machinery, he adds. “The other thing is “If you are contemclient, in Northland, who

handling grass

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Dairy News september 10, 2013

6 //  news

How much grass is there? andrew swallow andrews@ruralnews.co.nz

A QUICK check of monitor and demonstration farms shows how far ahead spring growth is on some farms. DairyNZ’s Farmwatch data shows Scott Farm, near Hamilton, grew nearly 80kgDM/ha/day in the week to August 30 – twice that in the same week last year – taking average pasture cover to 2460kgDM/ha compared to 2230kgDM/ ha last year.

Most other Farmwatch farms in Waikato also had covers ahead of last year, though the odd one, such as Hauraki, was behind. DairyNZ data from other regions in the North Island, when this article went to press, was limited. The figures presented are farm averages, so some paddocks would have far more grass. DairyNZ productivity team leader, Rob Brazendale, says he’s seen a pre-graze cover in the Manawatu up to 5000kgDM/ha, way beyond the target 3000kgDM/ha.

“It’s very hard to get effective utilisation of it at those covers and you’re not growing any more grass.” Cutting for silage, even if it has to be fed out in a just a month or two, is a better bet to maintain pasture quality, he stressed (see main article). In the South Island, mid-last week, Lincoln University Dairy Farm’s average pasture cover was 2560kg DM/ha, down just 114kg DM/ha from the previous week following 46kg DM/ha/day growth. “This gives us an estimated 21 tonne feed surplus,” say the farm walk

warmest winter in a century NIWA LAST week confirmed what most farmers already suspected: it’s been the warmest winter on record since 1909, based on NIWA’s seven station temperature series. Nationally, it was 1.2oC warmer than average and in the South Island record-high mean temperatures were widespread. August was a record or near-

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record warm one everywhere, with many locations at least 2oC above average. The exception areas were Northland, Auckland and western Waikato where temperatures were only in the ‘above average’ range, at 0.5 to 1.2oC above. Nationally the mean temperature for the month was 1.9°C above average, another record since 1909.

In most areas August was drier than normal too, with less than half the average rain for the month in parts of Southland, Otago and inland Canterbury. Hawkes Bay and Gisborne bucked the trend, with over 150% of average rain. Wetter weather earlier in the winter left most areas with normal soil moisture levels as of September 1.

notes on www.siddc.org.nz LUDF’s round was down to 33 days as a consequence — three days faster than planned, with the first round expected to finish at the end of this week. “Our plan is to continue using available feed on the platform in the first round, without silage, and if required top up with silage in the second round,” wrote the management team. Continued growth of 45kgDM/ha/

day or more will mean there’s enough grass to feed the herd pasture only during the second round, they calculate. In Southland at the start of the month the demonstration farm average cover was 400kg DM/ha ahead of the long-term average but growth-rate, at 20kgDM/ha/day, had slipped behind the norm for the time of year. @dairy_news facebook.com/dairynews

Dairy News september 10, 2013

news  // 7

Not just world-class, but best in class – Spierings pam tipa pamelat@ruralnews.co.nz

IF FONTERRA holds its confidence in the next few months it will come out of the food safety scare not only world class, but best in class globally, says Fonterra’s chief executive, Theo Spierings. “I am convinced we will all come out strong – not only Fonterra but New Zealand will come out stronger. We have to make sure we are a great, strong team – Fonterra and New Zealand.” “We need – as a co-op – and New Zealand needs, absolute stability in the coming two, three months. We have to have a lot of confidence, not only Fonterra but the entire country of New Zealand, to bring New Zealand up to the level where it should be – not only world class but best in class.” Spierings was speaking last week at the release of the company’s operational review, commissioned to look at the precautionary whey product recall, what happened, why it happened and what actions should be taken. “I can assure you with my experience in dairy this is very comprehensive,” says Spier-

Fonterra says its farms and ings referring to the action plan. “What factories are world class but it you see here is lifting the standard from wants to lift stnadards higher. world class – from what New Zealand and Fonterra is already – to being best practice or best in world because that is our next aim. We will really drive this to the highest possible standard. “There are a number of innovative actions here which are very uncommon in other dairy operations. We are going to lift the bar to the highest possible level.” New Zealand and Fonterra are world class in dairy, he says. It has efficient and world class farms and world class factories. Darfield has the biggest and most modern drier on the planet. “We have global reach, we operate in more than 100 countries, we have a strong customer and consumer base, and we run strong and robust quality and food safety systems. We are still The season was kicking in and the industhe leading player in dairy nutrition around try had to get into action mode. Conditions the world. “We are well placed – no reason for arro- are good for farmers, milk is coming in faster gance – but we have to focus on getting best than last year and they have had three strong GDP auctions. in class in the field of food safety.”

Good reviews will alleviate concerns EVEN BEFORE the outcome of the operational

review was known, independent milk product marketer John Shaskey told Dairy News he believes international customers will “generally see the Fonterra response as a positive indication that irrespective of the short term costs and damage to reputation, Fonterra acted quickly at the first signs of a serious problem.” That action will help ensure the market sees the botulism event as just that, and not a reason to doubt the ongoing John Shaskey integrity within the New Zealand industry’s quality systems, he says. “Good robust reviews of what went on and transparent disclosure of the learnings will help further in alleviating any concerns in the market.” Shaskey warns of a risk of reviews becoming politically driven and of a desire to “throw a few good people off the train” in order to demonstrate accountability for performance. “The key is to focus on what happened and what changes in business process should occur as a consequence. It would be unfortunate if one of the outcomes was that… the people looking for the dangerous bugs didn’t speak out quickly when they found signs of something because they were concerned about becoming one of those good people ‘thrown off the train’.”

8/28/2013 12:00:50 PM

Dairy News september 10, 2013

8 //  news

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confused communication in food safety issues such as a Fonterra botulism scare will be addressed in the inquiries, says Steven Joyce, Minister for Economic Development and for Science and Innovation. Joyce agrees food safety issues have big potential for confusion. “Every decision will

get tested from beginning to end and every player,” Joyce told Dairy News. “It hasn’t been a good experience but out of it may come some clearer understandings – in the public mind and companies’ and regulators’ minds – as to exactly what happens when. “As we move further up the value chain with our foodstuffs and into areas that are high value and sensitive, like infant formula and formula for the elderly, having clear

understanding of what happens when is really important.” Market jitters are dying down with the negative test results for the life-threatening botulism in Fonterra’s recalled whey product – but many questions are yet to be answered. “The uncertainty will fade now that the tests have come back false, which is good for everybody,” Joyce said. “It will provide some instant reassurance to markets that

there is no food safety issue. “But there are obvious questions about notifications, timings, research results – all those things have got to be answered. But… in a methodical and proper way, because that’s what our markets and New Zealanders will be expecting.” Asked about his understanding as to why Fonterra received a positive result for botulism-causing bacteria clostridium botulinum but the subse-

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quent independent test by Minister for Primary Industries did not, he says “it is one of those tricky situations”. “My understanding of it is – and I’m not a professional – in that case they identified some early markers, which could have been things (clostridium botulinum) or not. “The question becomes, ‘when do you go to market and when do you withdraw the product?’ That’s something every company has to work through. “One of the things that

will get tested through inquiries is ‘did they go soon enough?’. I don’t think people will say they went too soon, given the information they had, but did they go soon enough, did they do enough tests – all those sorts of things? “There are too many questions for me to start offering an opinion.” Asked why Fonterra did not appear to have been told of the MPI test results before the ministry went public (August 28), Joyce says “the results went out the day they came though”.

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Dairy News september 10, 2013

news  // 9

Welfare cases sign of system andrews@ruralnews.co.nz

AN APPARENT rash of animal welfare cases in the law courts does not reflect an increase in abuse on farms, says Federated Farmers. Rather, it is the result of MPI bringing closure to a backlog of cases dating back several years, dairy chairman Willy Leferink told Dairy News. Ideally, he says, the law should be changed to allow substantial spot fines to be imposed on animal welfare offenders, as happens in Europe. Only if the offender refuses to pay the fine would the case go to court. Feds’ calls for such a change have fallen on stony ground, but MPI has agreed to close the gap between investigations and prosecutions so the whole process is dealt with faster, he says. “This case was all over the Ashburton Guardian a couple of years ago, and

dealt with, and now here we go again,” he said after hearing of the latest MPI media release. This told how a local dairy farmer (61) pleaded guilty in Ashburton District Court last week to nine serious animal welfare charges brought against him by MPI. The offences date back to June 2011 when MAF, as MPI was then, was alerted to serious animal welfare concerns at the farm. DairyNZ had been working with the farmer to try to improve conditions on the farm but after seven months and no improvement it called in MAF. Ministry inspectors and a veterinarian found about 70% of the herd in poor condition with no feed available. The vet’s opinion was that all cows were at least 100kg underweight for the time of year, and given imminent calving, were in an unacceptable condition and distressed state. Over the next month MAF, vets and a farm con-

sultant visited the farm many times to try to persuade the farmer to take steps to improve the herd’s condition. But he would not cooperate and the herd’s condition kept deteriorating. On July 14, 92 of 124 cows on the farm were found in very poor condi-

tion: two were euthanased immediately and the farmer ordered to send the remaining 90 to the closest slaughterhouse within a week. This was not complied with, and the farmer was served with an order pursuant to sections 133 and 134 of the Animal Welfare Act enabling MAF to

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enforce destocking. “The key message in all of this is… doing nothing is not an option,” MPI Canterbury/Westland district compliance manager Peter Hyde told Dairy News. If the farmer in the Ashburton case had listened to the advice offered by MPI and industry sup-

port groups, the condition of his herd would have undoubtedly improved and the case need never have gone to court, he adds. “Even when animal welfare inspectors arranged for a vet and an expert farm consultant to provide advice, this was

once again ignored.” Hyde acknowledged Leferink’s explanation for the rash of welfare cases in the courts. It has also been a good winter in that MPI hasn’t had any big welfare cases to deal with, It’s been able to clear up cases on the back burner, he added.

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‘Boots’ kicks off kids art competition ENTRIES FOR the big art contest for rural children are pouring in, headed by a “cool” calf named Boots, from Canterbury. The annual LIC competition, supported also by Stallion Plastics, encourages rural children aged 5-13 who are rearing calves for Calf Club to paint and draw their pets for worthhile prizes. Jade Williams’ (9) entry was first in. Her picture of calf Boots, chosen from her mum and dad’s Waimate dairy farm, was named for the white ‘boots’ on its back feet. The Williams family are getting ready for her school’s Pet Day next month, and Jade entered the art competition to try to win a new cover to keep Boots warm, and a $6000 Stallion calf feeder for her parents. Her picture took “about two days and half an hour” to complete. LIC communications manager Clare Bayly says she is amazed by the creativity of children entering the contest.

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Dairy News september 10, 2013

news  // 11

A2 mik not affected by botulism scare pam tipa pamelat@ruralnews.co.nz

PRAISE FOR Fonterra and the Government’s handling of the falsealarm food safety recall has come from an unexpected quarter – A2 Corporation which is launching its own infant formula brand in China in November. A2 managing director Geoff Babidge told Dairy News they will not be directly affected by the Fonterra scare and the launch is going ahead as planned – with their infant formula brand A2 Platinum on shelves in China in November. It is also being launched in Australia and New Zealand, and should start appearing on shelves here in early to mid-October. “Obviously anyone in the industry should be concerned about potential impact on brand New Zealand,” says Babidge. “But we have been satisfied with how all parties have reacted – the company and the Government – in addressing the matter.” A2 had its people in China immediately following the announcement of the quality issue. “There has been a lot of communication and a responsible position taken by the various parties. We are of the view that it will mitigate any on-going issues relating to the matter. We are not forecasting any change to their current plans because of the issue.” The first A2 Platinum left New Zealand in June and is completing the processes through Chinese authori-

A2 managing director Geoff Babidge with Xu Jun, chairman of China State Farm Holding Shanghai Company (CSF), A2’s distributor in China.

ties and working its way through the supply chain. A2 Corporation appointed State Farm Holding Shanghai Company (CSF) in late 2012 as the exclusive distributor of A2 infant formula in Greater China with a joint marketing structure. A marketing committee is comprised of A2 and CSF representatives, with Babidge as chair. A2 has a strategic supply agreement with Synlait Milk, with 12 accredited farmers in Canterbury supplying A2 milk for infant formula. Support for A2 milk in Canterbury is strong and building, says Babidge, with more farmers wanting to sign up. The company has established a new management team with experience in infant formula marketing, quality processes and supply chain and appointed an in-market manager located in Shanghai. This team will

also develop further growth opportunities such as UHT milk and, in time, infant formula products in other Asian markets. “We are putting some new effort into identifying opportunities particularly for UHT and subsequently yoghurt. We see UHT as being very complementary in taking infant formula into China,” says Babidge. In New Zealand A2 Platinum will be launched nationally. They are looking to broaden an initial arrangement with Foodstuffs. For fresh milk in New Zealand, Babidge says they are continuing discussions through the year with the non-exclusive licensee for fresh milk in New Zealand – Fresha Valley. “We are continuing our discussions on whether there is a way for us to get more involved and participate with them in the sale of fresh milk in New Zealand.”

Full tilt in Australia, UK A2 BRAND fresh milk is the fastest growing dairy brand in the Australian grocery market, says A2 Corporation in its annual report to June 2013. It estimates the market share of A2 brand milk at 7.4% by value during the last quarter of the financial year. Australia sales were up 48% on the previous year. Overall, A2 Corporation’s group sales increased 51% to $94million for the year ending June 2013. Net profit after tax was $4.120 million, higher than company and market forecasts, the report says. A2 brand fresh milk was launched in the UK market in June 2013, and in the same month supplied to the Chinese

Infant formula brand A2 Platinum will be on shelves in China in November.

distributor. The Australia-New Zealand launch is imminent. Babidge says the above-expectation trading performance in Australia helped increase funding to set up an a2 brand milk business in the UK. “The focus in the first half of

the year in the UK was on completing the establishment of the business and launching our brand into the UK retail trade,” the annual report says. “A small team near London manage sales, marketing and health care professional activities. Other support functions are outsourced to our joint venture partner.” A strong farmer supplier base is yielding commercial quantities of a2 milk for the UK. A one-off incentive scheme was initiated to support aggregation of a2 herds by a number of farmers by 2014. The product launch started October 2012 initially with three retailer groups and about 700 retail outlets from January 2013.

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Dairy News september 10, 2013

12 //  news

Payout up across the board andrew swallow andrews@ruralnews.co.nz

WESTLAND AND Synlait have followed Fonterra’s lead and raised their forecasts for this season’s payout. Canterbury-based Synlait Milk last week hiked its predicted milk price to $8/kgMS and lifted its advance 50c to $5/kgMS. Managing director John Penno said higher than forecast revenue from high commodity prices and extra processing volume made the firm confident of achieving earnings targets for the year to July 2014 at the increased milk price. Some of that extra volume will come from Fonterra in the form of DIRA milk, Synlait Milk having announced August 30 that it would take a “significant allocation” under Dairy Industry Restructuring Act rules. Synlait says it needs the DIRA milk because further planning and a small investment in plant and equipment has created opportunity to increase production of ingredient products without impacting infant formula or nutritional product business.

Asked by Dairy News if there were other drivers for the uptake of DIRA milk, such as a drop in farm supply, it said there weren’t. Intake will now be at least the 46.4 million kgMS indicated in its Initial Public Offering prospectus ahead of its partial listing on the New Zealand Stock Exchange in July. As for the transport John Penno charge dispute with the Oceania group of suppliers in South Canterbury (Dairy News, July 23), that remains as detailed in the risks section of the prospectus. That said a new price formula and distance surcharge introduced to certain suppliers whose contracts were novated to Synlait from Oceania Dairy Limited was regarded by some of those suppliers as a breach of contract. Synlait said it believes it is entitled to introduce the distance surcharge but the matter “may ultimately need to be determined by a court.” Westland, which took DIRA milk for the first time last season, told Dairy

News it has budgeted on taking 36 million litres this season but “at this early stage” it could still take the full 50 million litres if sharebacked supply dropped. “DIRA is only available for the next two seasons so we will phase it out and replace it with share backed milk,” says chief executive Rod Quin. Westland revised its payout forecast for the current season shortly after Fonterra’s August 27 announcement (see sidebar), and before Synlait’s, adding $1 to make its range prediction $7.60-8.00/ kgMS, with the advance also increased to $5/kgMS. All three firms compete for supply in Central Canterbury. Quin says firm international prices, no backlash to the botulism scare, supply already 5% ahead of budget, and Westland’s strategic move into higher

value nutritionals are behind the “confident pay-out forecast.” “We’ve had a successful launch of our new Westpro Nutrition products in China recently, and fully expect the new nutritional products plant in Hokitika to be working to capacity this season. All this is good news for our shareholders and the local economies.” The NZ dollar dropping a few cents had also helped support the higher payout. Westland says it has at least 300 shareholders on the West Coast and, in

its third season of taking milk over the Southern Alps to Hokitika, 34 in Canterbury. A business case on whether to build a processing plant at Rolleston, which it has consents for, is still being prepared, says Quin. “Any investment in Rolleston or Hokitika will be announced to shareholders when approved by the board,” he said. “Right now the Hokitika site is preparing for the new 30 megawatt boiler build which will be commissioned September 2014.

Fonterra adds 30c/kgMS FONTERRA ANNOUNCED a 30c increase in its farmgate milk price forecast for 2013-14 on August 27, taking it to $7.80/kgMS with estimated dividend unchanged at 32 cents/share. Chairman John Wilson said the higher forecast reflected continuing strong international prices and market views that commodity prices will remain at historically high levels longer than previously predicted. Substantial volumes of product have been sold on recent GlobalDairyTrade auctions, with prices holding, but remaining uncertainties mean no change to the current advance of $5.50/kgMS as announced July 30. Fonterra will announce its result for 2013 on September 25.

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Dairy News september 10, 2013

news  // 13

Milk starts to flow peterb@ruralnews.co.nz

MILK FLOWS nation-

wide are mostly up on last year, but dairy industry managers are not forecasting a record season. Craig McBeth, DairyNZ, says the regions’ milk flow increases are ranging from zero to 10% on last year. But forecast percentage increases are based on very small actual volume increases. “By February your season-to-date figure becomes more enduring… [relative to] to a previous year’s production at the same of year. But so far such a small amount of production has been sent to the factory that any increase can show up as a high percentage increase. “It’s not necessarily

going to result in that good start carrying on for the rest of the season, so there is still a lot of uncertainty where it will end up.” McBeth says Southland has been slow getting going, probably because of later calving there. “Some cows have come back lighter from grazing because winter crops [suffered because of the dry autumn]. “They also had a couple of snow events making it harder to get feed into the cows, so that’s probably impacting early season production. Northland on a daily basis is doing well but on a seasonto-date basis is not as a strong as might have been expected.” Fonterra says overall the milk flow is about 4% up for the month to date, but 1% up on the season

to date. Much depends on how calving has gone, McBeth says. “The good story is farmers have plenty of feed growing and there’s been a great bounce back. They are feeding home grown feed more than is usual for this time of the year… saving money by

reducing the use of supplements. These can now be available for other times of the season when they’ll generate more response. Resulting savings can be used to repay short term debt incurred in the [summer] drought.” McBeth says the mild winter has helped pasture

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Craig McBeth

THE BRILLIANT ALL ROUNDER.

Great start but still early days A MILD winter has got milk flows 5-6% ahead of budget at Westland Milk Products Chief executive Ron Quin told Dairy News that while the season is growing and up on budget “it’s early days yet”. “There is always a danger of looking at the start of the season and expecting the weather conditions will be as mild as and as conducive to pasture growth as through early spring. So… a note of caution, but at this stage it’s a great start.” Quin says the impacts of the drought on pasture and cow condition are largely over, but the financial impact Rod Quin of lost milk production and the extra feed required during the drought are still being felt. “So on the surface it looks like they have moved through the problems of the past and they recognise the future is looking a lot better, but there are still constraints and overdrafts that will cause concern for some during the next few months.” The mild winter has meant West Coast farmers haven’t had to feed out silage and some farmers now have the luxury of this as a backstop in case the weather turns. “Our forecast payout is $7.60 to $8.00 and we have signaled we see the market holding reasonably firm for the season based on the lack of global supply of milk. But I… caution these prices and the exchange rate can be volatile.” Miraka, Taupo, says milk flow has been up 10% for August. Chief executive Richard Wyeth says the amazing autumn and a mild winter has caused grass growth to exceed expectations. “We are looking strong at this stage, but we expect that tens figure to drop back to single figures in September and October.” Wyeth says the challenge for many farmers in the region and elsewhere is managing their pastures so that the quality of the grass doesn’t deteriorate.

covers to respond and cow condition to rebuild. “A lot of cull cows ended up in the freezing works earlier than normal so when the grass started to grow there were fewer mouths to feed and that helped the recovery.”

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Dairy News september 10, 2013

14 //  news

Election season in full swing AS IF spring wasn’t busy

enough on dairy farms, the annual bombardment of ballot papers looms as Fonterra, DairyNZ and others get elections underway. Aspiring Fonterra directors or shareholder councillors have until noon this Friday to get

nominations in. One of the three directors’ seats will feature a new face because of Henry van der Heyden’s retirement from the board earlier this year. In previous years such a vacancy has prompted a spike in nominations. Whether that happens

Malcolm Bailey

Ian Farrelly

this year will become clear on October 1 when Electionz releases candidate names, following completion of the optional candidate assessment panel process. Candidates may choose to withdraw their nomination following that process. Electionz said it

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Tom Walters (Te Puke). Levy payers get voter packs this month and all votes – internet, fax or postal – must be received by noon October 16. Votes are weighted by milksolids produced in 2012/13. Meanwhile DairyNZ has appointed two dairy farmers as associate directors, a new position designed to build governance skills in the sector. Elaine Cook and Grant Wills will each sit for sixmonth consecutive terms in the non-voting position, Cook from September to February, and Wills from March to August. “We wanted to give aspiring directors the chance to build experience and confidence, learn from others and ensure we have a pipeline of people available for boards,” says DairyNZ chair John Luxton. “We had a great response… 30 people applying. It was heartening to see the talent that came forward.” Luxton says Cook and Wills will be great additions to the board of eight. “They are both award-winning farmers who have already served in governance roles in the sector and in their communities.” Cook is a Waikato business coach, Southland dairy farm owner and a director of the Southland Demonstration Farm. She and her late husband Wayne won NZ Sharemilker of the Year in 2006. Wills is a Waikato dairy farmer and Fonterra Shareholders’ Councillor. He was supreme winner of the Ballance Farm Environment Awards in 2013 and is a former Piako Sharemilker of the Year winner and Dairy Farmer of the Year finalist.

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couldn’t comment on whether current Fonterra directors Malcolm Bailey and Ian Farrelly, retiring by rotation and eligible for re-election, would be seeking re-election. Two positions on Fonterra’s directors’ remuneration committee are also up for election – one on the Fonterra Farmer Custodian Trust, and 14 on the Shareholders Council. For the directors’ remuneration committee, Scott Montgomery and Gerard Wolvers are retiring by rotation and are eligible for re-election, as is Fonterra farmer custodian trustee Paul Todd. The 14 Shareholders Council ward elections include three new positions, in Wards 31, 32 and 33, to better represent the distribution of herds. These new ward positions will be for one year (as opposed to three), pending the outcome of a complete ward boundary review and appropriate amendments to existing wards for the 2014 election cycle. For all Fonterra’s elections a single transferable vote system is used with voting by internet, fax and post. Nomination papers and candidate handbooks are available from Electionz: tel 0508 666 446; e-mail elections@electionz.com. Meanwhile nominations for DairyNZ’s board are in, with four candidates vying for two positions. Two directors are retiring by rotation and standing for re-election: Alister Body (Ashburton) and Barabara Kuriger (New Plymouth). They are up against candidates Kevin Ferris (Te Awamutu) and

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FONTERRA HAS resumed trading in Sri Lanka after a state order preventing the co-op from selling its products was overturned in the Gampaha District Court. The co-op suspended its operations two weeks ago citing security concerns. Chief executive Theo Spierings says its management decided there is no risk to Fonterra staff and that the situation has stabilised. The co-op suspended operations to protect its people and shareholders’ assets, Spierings says. “I am now confident our people are safe and the business is ready to resume operations.”

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Dairy News september 10, 2013

16 //  news

Fertiliser losses seen at a glance A NEW tool from Ballance Agri-

Catto says about 80% of nutrient Nutrients will soon enable farm- losses are from 20% of farmland. “It is far more cost effective to ers to discover which paddocks are losing nutrients and what to do direct mitigation and management to the key areas, rather than work about it. The tool is MitAgator, a com- across the whole farm. That’s why Ballance has focused puter programme that proon developing a preciduces maps showing which sion model that works areas are at risk of high N in conjunction with and P loss. It is the product Overseer and uses of research by Ballance Agriother data on soil and Nutrients and AgResearch, topography to give an co-funded by the Governobjective result. It will ment’s Primary Growth PartWarwick Catto help farmers to mininership (PGP). mise losses while getUser testing and validation is now underway for the “preci- ting better use efficiency from their sion decision” model, which will tell phosphate (P) and nitrogen (N) ferhow to reduce nutrient losses while tiliser. “MitAgator generates maps getting the best response from fertiliser, says Ballance’s R&D manager, showing the areas that are at high risk of N and P loss, as well as sediWarwick Catto. MitAgator takes data from Over- ment and bacteria losses to the enviseer files and links this with a geo- ronment. Once the base risk maps referenced farm map, a soil map and are developed, mitigation and management strategies can be modelled, a digital elevation model.

and can be targeted to an individual paddock, or even part of it.” The modelling selects from a range of possible mitigation options by cost and effectiveness, and the technology allows for mitigation options to be applied to the map, such as fencing off a wetland. “What we’ve got now is a prototype model which will map where nutrient, sediment and e-coli losses are occurring,” says Catto. “This has great potential benefit in helping farmers to continue farming within nutrient-restricted catchments. “The next step is to integrate MitAgator with other data sources to create a model which enables realtime risk management. For example, a farmer could then use MitAgator to access soil moisture data and forecast rainfall before deciding whether to graze stock or irrigate effluent. “This is part of the vision for the Ag-Hub farm management information website Ballance owns.”

Rural Women members want your votes A RECORD number of 14 Rural Women NZ (RWNZ) members are standing in local government elections. Three are unopposed. RWNZ says they are motivated by the need for councils and district health boards to better understand the challenges facing rural communities. Rural rates are the hottest issue for many candidates, especially because they see farmers paying a disproportionate share of rates. Sharyn Price, a Kauru Hill RW candidate in Corriedale, Waitaki District Council, says rates fairness and value for money are essential. “Rural ratepayers have seen much larger percentage increases in rates than the council’s averages, thanks to farm development increasing capital values, while town values fail to keep pace. Paying ever more for a shrinking share of services is not reasonable.” Associate RWNZ member Geoff Evans, a councillor in Wairau/Awatere, Marlborough District Council, agrees. He says in his first term of office he was distressed by huge property revaluation-driven rate increases. “Over 40% for some rural people…. individuals cannot afford increases of this magnitude.” Transport and roading are also an issue. Selwyn mayoral candidate Olive Webb says rural roads are fast and deadly if not well maintained. “The intensification of land use means hundreds of milk tankers, logging trucks and more cars are thrashing the roads.”

Middlemarch RW member Kate Wilson, standing again for Mosgiel/Taieri, says certainty of water management in the next 10 years is a priority facing Dunedin City Council. Getting the silent majority excited and engaged in these elections is vital, says first time candidate for the Waikato District Council, Jacqui Church, a member of Onewhero RWNZ. Her ward stretches from south of Auckland to the Waikato River. “Have we women, and particularly our younger women, forgotten how we fought and won the vote? How we were the first women in the world to vote? This is a precious gift to honour.” For women standing for DHBs, prime rural concerns include access to healthcare and retention of services. Top of the South RW national councillor Pam Thomlinson is standing for the Nelson/ Marlborough District Health Board. She would like to see elderly rural people get the same access to in-home services as urban people do, meaning travel for carers must be paid at realistic rates. Ainsley Webb, chair of the Central Otago Health Inc board that runs Dunstan Hospital at Clyde, says inequitable funding for rural areas and the inability of townie administrators to understand problems facing the rural sector – including isolation and distance to services – are the top challenges. Unopposed, she will serve a fourth term. This year the board bought a CT scanner for the hospital, paid for by the community.

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Notice of Elections Fonterra Co-operative Group Limited Board of Directors, Shareholders’ Council, Directors’ Remuneration Committee and Fonterra Farmer Custodian Trust Notice is hereby given that the following four elections will be held concurrently in 2013 for Fonterra Co-operative Group Limited. Board of Directors: Shareholders’ Council (14 Wards):

Directors’ Remuneration Committee: Fonterra Farmer Custodian Trust:

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Election of Three (3) Directors Election of One (1) Councillor in Wards 3, 6, 8, 9, 12, 15, 18, 21, 24, 27 and 30, an extra Councillor in Wards 31 and 32 and Two (2) Councillors in Ward 33 Election of Two (2) Members Election of One (1) Farmer Custodian Trustee

Invitation for Candidate Nominations Nominations are called for candidates to stand for these four elections. Fonterra shareholders are eligible to stand for all four elections. Nomination forms and candidate handbooks can be obtained from the Returning Officer. Nominations must be received by the Returning Officer by 12 noon on Friday, 13 September 2013. Elections for Shareholders’ Councillors To ensure a more accurate representation of Shareholders (based on the number of farms and Milk Solids produced) an extra Shareholders’ Councillor will be added to Wards 31, 32 and 33. These terms will be for one year by which time a complete ward boundary review will have taken place and appropriate amendments to existing wards implemented in time for the 2014 election cycle. In the case of Ward 33 where there will be two vacancies (one due to retirement by rotation and one via an extra position) both terms will be for one year. The term for Ward 8 will be two years. Further details on this will follow in the coming weeks. Elections will be held in the following 14 Wards for the Shareholders’ Council: Ward 3 Northern Wairoa Ward 6 Hauraki Ward 8 Hamilton Ward 9 Morrinsville Ward 12 Cambridge Ward 15 South Waikato Ward 18 Otorohanga Ward 21 Coastal Taranaki Ward 24 Southern Taranaki Ward 27 Southern Manawatu Ward 30 Northern/Central Canterbury Ward 31 Mid Canterbury Ward 32 Southern Canterbury Ward 33 Otago Warwick Lampp, electionz.com has been appointed as the Returning Officer for the 2013 Fonterra Elections. For further details, call the Election Hotline on free phone 0508 666 446 or contact the Returning Officer at elections@electionz.com. Warwick Lampp Returning Officer – 2013 Fonterra Elections Email:elections@electionz.com Election Hotline: Free Phone 0508 666 446

Dairy News september 10, 2013

news  // 17

Food safety behind $220m plant PAM TIPA pamelat@ruralnews.co.nz

CONCERNS ABOUT

food safety in parts of the China market underlie a plan by the Chinese infant formula maker Yashili to build a $220m plant at Pokeno, just south of Auckland. The company explained this to an independent commissioner, Michael Savage, appointed by the Waikato District Council, which late August granted consent for the plant. The consent is subject to a 15-day appeal period which finishes early this week. Yashili NZ Dairy Co is a wholly owned subsidiary of a Hong Kong listed

company Yashili International. China Mengnui Dairy, of which the Chinese Government is the biggest shareholder, currently has a deal to buy a majority stake in Yashili International – worth about $2billion – as part of a plan to expand its milk powder business. Yashili is ranked about eighth in the China milk formula market and China Daily says the acquisition would be the largest single deal in the Chinese domestic dairy industry. It is expected to lead to further integration in China’s milk powder business, the newspaper reports. General manager of Yashili NZ, Yingxiang Zhao, told the hearing for the Pokeno infant

formula plant that Yashili International is based in the Guangdong Province in China and it has plants there, and in two other locations in China.

Established in 1983, Yashili has since 1998 focused on making infant milk formula and nutritional foods products. Its infant formula brands

are Scient and Yashili. It has a research and product development centre in China employing 32 scientists. Yashili International is experiencing strong consumer demand for safe nutritional products for infants and young children, Zhao told the commissioner. This demand, and concerns about food safety in some parts of the China market, has lead the company to decide to establish a manufacturing operation in a suitable offshore location, Savage says in his report.

Yashili already sources milk powder from New Zealand and first imported New Zealand products to China 10 years ago. The premium end of Yashili’s product line has been based on New Zealand ingredients since 2010. The Pokeno plant will employ 120 people and the company is in discussion with potential partners and suppliers to source about 60 million litres of local milk each year and about 6000 MT of whey

protein concentrate from New Zealand suppliers. Zhao told the hearings that Yashili was committed to being a good corporate citizen in New Zealand. Its brand reputation is a valuable asset which is does not want tarnished. About five staff will be brought from China who will be specialists in product formulation and import/export regulations. The rest are expected to be locals, including 75 staff on shifts 24/7.

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anz business tour A GROUP of Kiwi food and beverage processors just home from a 10-day ANZ tour to China have new insights, links with potential partners and new business leads. The 20 businesses, including dairy producers, visited Hong Kong, Guangzhou and Shanghai. They met prospective buyers, customers and business partners, and attended workshops organised by ANZ, with representatives of NZ Trade and Enterprise, KPMG, Redfern Associates, TNS and PwC. A highlight was the Hong Kong Food Expo, where 11,000 food and beverage exhibitors from around the world showed products to 400,000 visitors. “The goal was to give customers a better understanding of how to do business in Hong Kong and China and connect them with ANZ’s on-the-ground networks to help them expand their business into these markets,” says Graham Turley, managing director commercial & agri for ANZ Bank NZ.

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Dairy News september 10, 2013

18 //  news

Can we feed our cows better? peter burke peterb@ruralnews.co.nz

CONCERN IS being

expressed in the dairy

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says in recent years much less funding for science – in New Zealand and globally – has gone into animal nutrition, whereas animal genetics have had ground breaking technological advances. The advent of genome mapping and subsequent developments have made this less expensive, and science funders have largely ignored investing in nutrition research, she says. “In New Zealand, farmers have been increasing the genetic merit of their herds, and BW and PW gains have been consistently improving the national herd by an average of 12.5 points per year. A lot of that has been driven by people selecting cows that are more productive and then feeding these cows more supplements.” Margerison says it’s important to select cows that best suit their particular farming system or the farmer’s resources and skills. Much of the change taking place is driven by milk price, and more regular droughts in traditional milk producing areas. When prices are high, more supplements fed and when milk prices are lower the cows are effectively put out to pasture. “Farmers change genetics or buy cows that have better genetics and breed cows that have better genetics in order to have animals that are more responsive when they are fed more nutrients. When the ‘genetic merit’ goes up the amount of nutrients a cow apportions to milk yielding increases: that’s what a major part of genetic merit describes.” However Margerison points out that regardless of their genetic makeup some cows perform better in different systems. For example, some cows may

be suited to a system-one regime, others to system five or even once-a-day milking. Longer term we have to change the genetic merits of the cow to suit the system, and change the feeding to suit the genetic makeup of the cow, otherwise it’s inefficient, she says. “I once heard a geneticist at a dairy conference [draw an analogy] which I thought was very sensible: ‘are you, say… driving a [fourwheel-drive] or a sports car?’ They are quite different and so are cows within a breed type. You could say the sports-car cow is top of the range and can feed as a systemfive cow, whereas at the other end of the scale the 4WD could arguably be a system-one cow that essentially gets fed on pasture.” Margerison says farmers should focus on springer cows to minimise metabolic disorders – especially milk fever – and cows in early lactation. That’s when a cow is most responsive and how it’s managed in this period dictates how much milk it’ll produce during the rest if it’s in lactation and this is when it needs to get pregnant. “Looking at the actual lactation cycle of the cow – the lactation curve as we call it – means that early lactation management feeding is really important for the rest of lactation. “It’s also important for reproduction and if you don’t get your cows pregnant, in whichever system you are in, it’s not cost effective so we have to sometime focus on short term goals and feeding strategies to keep the cow healthy and get the cow pregnant – that’s a big priority.” @dairy_news facebook.com/dairynews

Dairy News september 10, 2013

news  // 19

Miraka eyes Asian business deals peter burke peterb@ruralnews.co.nz

THE CHIEF executive of Miraka, the

Taupo Maori dairy processor, is in Asia this week following up on business deals the company has there. Richard Wyeth will initially go to Vietnam to meet with the senior executives of the local dairy company Vinamilk, a shareholder in Miraka. “This is part of an annual trip I do to catch up with Vinamilk to see how their business is tracking and see if there is

anything we can do from a New Zealand perspective to help provide them with product. It’s to explore other opportunities they may be aware of because they are right in the market, and to see if we can fill the gap with product from New Zealand.” Wyeth will also visit China for talks with executives from Shanghai Pengxin. Miraka has a joint venture with Shanghai Pengxin to produce UHT milk from farms the Chinese company owns here. “There is still quite an opportunity to build on the UHT deal we’ve signed with them and they want to grow the

volume. So we are working with Shanghai Pengxin to see what we can do with them in China. “I will also be talking to other whole milk powder customers in China.” Wyeth says the Fonterra botulism scare has created problems and added costs for Miraka. They have had to do additional product testing. “That’s led to delays in getting some products through the borders in China, but most of that is worked through now and I’d like to think in the next two to four weeks it should be business as usual,” he says.

Miraka’s Taupo plant.

Wyeth gains PM scholarship RICHARD WYETH has won a Prime Minister’s scholarship. He’s one of ten “of the brightest business minds” in the country to win a scholarship to study at a worldleading business school. He will do a four-week advanced management course next March at the INSEAD International Business School, Singapore. Miraka nominated Wyeth for the scholarship, awarded via a se-

lection process. relationships with other “There were a business executives. number internation“We do most of our al business schools business through Asia so all around the world, I thought Singapore was but I wanted to do the right place to do that an international as opposed to London or course because Europe.” we are an export Wyeth, who has a Richard Wyeth focused business. BComm and BA, says it’s I thought Singapore would offer a long time since he’s done any me the best opportunity to build other formal training.

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Dairy News september 10, 2013

20 //  news

Where would they go but pam tipa pamelat@ruralnews.co.nz

THE ENTREPRENEURIAL spirit of its

researchers and their closeness to customers – in particular dairy farmers – is why Bayer is keen on doing R&D in New Zealand. The “can-do” attitude is one of the reasons the German global animal health giant spends $10 million in R&D in New Zealand, with dairy an important part, says Bayer’s head of global animal health development Dr Douglas Hutchens. Bayer’s Centre for Innovation and Development (CID) has just opened a new research facility at its North Shore, Auckland, site. This replaces a smaller laboratory at its Manukau pro-

duction site. The new, larger facility will make veterinary medicines more effective as it develops new formulations for the local market and region. Bayer’s CID head Wayne Leech says dairy is a big species for them with key development areas in mastitis and reproduction. “We are doing a lot of dairy innovation in New Zealand that goes out to other countries,” Leech told Dairy News. “We have at least three projects now that have gone on to become global projects.” They have gone back to Germany now, and are in development stages for worldwide launch. Hutchens says one of the keys for Leech and his group of 35 specialists in New Zealand is “this entrepreneurial spirit on how to solve problems and

Bayer’s head of CID, Wayne Leech (left), ANZ chief executive Dr Jackie Applegate, head of global animal health development Dr Douglas Hutchens and Science Minister Steven Joyce.

really get close to the customers”. “Why do we invest

here? What is so special about New Zealand? It isn’t close to Germany.”

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He says this former group of researchers and innovators from Bomac (pur-

chased by Bayer in 2011) and the New Zealand people in general “really

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have a can-do attitude and an entrepreneurial spirit”. “In drug develop-

Dairy News september 10, 2013

news  // 21

New Zealand ment we have lots of failures and few successes; it is easy to say ‘no’. But the people here usually find a way to say ‘yes’, and find a solution to a problem that helps our animals and customers. “Through this group Bayer is much closer to the customers. Where would you go if you wanted to do a dairy study or wanted to get the insight from customers for dairy? You have way more animals than people,” Hutchens joked. Being so close to customers was “a bit unique around the globe”. Leech heads a team of 35 specialists, all Kiwis, including veterinarians, pharmacists, pharmacologists and analytical chemists. They collaborate closely with universities. “We are pushing them into our areas of research. They come up with the academic ways to solve problems, we apply it to our industry.”

Hutchens says the group is already expert in applied research. Their ability to collaborate with world-class universities in New Zealand enables them to solve industry problems and leverage that globally. Bayer was keen to invest because of those capabilities here. “Having people imbedded in university helps idea generation. A significant amount of money is with contract research organisations in New Zealand to evaluate efficacy and safety of new products.” Minister for Science and Innovation Steven Joyce, who holds a zoology degree, says Bayer’s new research facility opening was in line with the Government’s business growth agency. He believed the Bayer remarks about how New Zealanders innovate were “spot on”. “We have people who

Cross-industry expertise makes a difference BAYER HAS appointed a new New Zealand managing director, Dr Holger Detje, who heads Bayer’s New Zealand agriculture business, known as Bayer CropScience, a role in which he will continue to perform. Detje succeeds outgoing Bayer New Zealand managing director Patricia Castle who will continue to head the company’s New Zealand finance and administration department. The change is part of a move to rotate the managing director role between members of Bayer New Zealand’s senior leadership team. Originally from Germany, Detje is well aware of the power of business to drive economies. An agricultural scientist, he has worked in several international marketing and senior management roles throughout the world. At the end of 2010 Detje took over the position as country manager for Bayer CropScience in New Zealand. He also represents Bayer as a board member of Agcarm, the industry association for crop protection and animal health businesses. “We’re in a unique position as an international company because we simultaneously work in the areas of pharmaceuticals, agriculture and animal health. Plus we have a MaterialScience sub group focused on high-tech materials,” says Detje. “With New Zealand being an agriculture based economy, our operations are particularly important for New Zealand, but New Zealand is also important to Bayer.” Detje points to Bayer’s multi-million dollar investment in its New Zealand animal health business and the creation of the Auckland Centre for Innovation and Development. “With the centre we’re able to develop new animal health medicines here locally, for the New Zealand market and for export.” Detje is a dual Australian-German citizen and is married with three children.

can cross discipline, think how they could solve a problem – work out how we can make it practical for people. “I have lost count of people from America, Europe and other parts of the world through this job saying it is amazing what we do with such a

small group of people. We need to hang on to that and develop our skills base here.”

Science Minister Steven Joyce and Wayne Leech, head of the Centre for Innovation and Development, at the new laboratory on Auckland’s North Shore.

Dairy News september 10, 2013

22 //  news

World’s largest milk powder drier start-up Fonterra has invested $500 million in Darfield over the last three years.

THE WORLD’S largest milk powder drier, at Fonterra’s Darfield site in Canterbury, started production last month. Whole milk powder made at the plant will be exported to 20 markets including the Middle East,

China and Southeast Asia. Fonterra’s director logistics network, Robert Spurway, says at the peak of the season, the drier will run 24/7. It will produce at least 700 metric tonnes – the equivalent of 45 shipping containers – each day.

“The demand for dairy nutrition around the world, especially for whole milk powder, is still strong. Drier Two will ensure Fonterra has the capacity to meet this demand and to process ongoing milk growth in Canterbury, the fastest growing dairy region in New Zealand. “The new drier will help the cooperative meet the growing demand for dairy nutrition globally and will play an important role in Fonterra’s strategy to optimise its New Zealand milk business. “With Drier Two now

online at Darfield we are taking fresh milk from farms up to 65km from the site, and have successfully completed our first production run of whole milk powder.” The drier’s first production run marked the completion of Fonterra’s $500 million dollar development of its Darfield site over the past three years. “Seeing the second drier up and running after Drier One’s successful first season of operation is testament to the co-op’s manufacturing capabilities,” Spurway says.

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• Darfield’s Drier Two is the world’s largest milk powder drier. • The drier has the capacity to produce up to 30 metric tonnes of whole milk powder per hour, and 700 metric tonnes per day. • Drier Two produced 100 metric tonnes of whole milk powder during its first production run. • 1500 staff and contractors worked 700,000 man hours to deliver this world class milk processing facility. • Milk is collected from Fonterra’s farmer shareholders up to 65km distant, trucked to Darfield, then processed into whole milk powder and packed into 25kg bags.

Free milk flows into Manawatu FREE MILK for school students has now been extended to Manawatu and Wanganui. About 100 schools in the region with primary-aged children (years 1 – 6) have signed for milk each school day by the end of term three. Fonterra director of social responsibility and sustainability, Carly Robinson, affirms the momentum. “We are proud to work with and have the support of schools in the Manawatu and Wanganui to bring Fonterra Milk for Schools.” One of the first schools, Riverdale School, hosted 26 children from 12 schools in the region for a morning of Fonterra Milk for Schools themed activities. Riverdale School principal, Debra Peck, says the children enjoyed a tour of one of Fonterra’s farmer shareholders farms to learn about where their milk comes from, did riparian planting, and took a trip to Fonterra’s R&D centre. “Signing up for Fonterra Milk for Schools [means]… we now have 360 students… in the programme.” The scheme will soon open in Hawke’s Bay. It is expected to be complete nationally by the end of term one 2014. About 750 schools are now signed up.

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Dairy News september 10, 2013

24 //  world

Chinese appetite growing for Oz milk GLEN FISHER

AS WIDELY reported,

the combination of lower milk prices, higher input prices and adverse seasonal conditions meant that the total production volume for 2012-13 finished down 2.9% on the prior season. Lower total production cut milk supplies to manufacturers, but with healthy – albeit relatively low – growth in dairy production and consumption outstripping domestic requirements, the industry still relies on export growth to drive farmgate returns. We collate our figures on the prior season, as the data comes available, including estimates of how milk was utilised.

A first glance at the export figures might suggest no truly significant year-on-year shift. This is not unexpected, given generally stable, established product mixes and relationships in export markets. So, the 201213 figures reveal export volumes were up, about 5% to 800,000 tonnes and export value was marginally down (0.1%) to A$2.756 billion. Higher cheese volumes and the higher Australian dollar were primary drivers of these data. Overall the pattern depicting the value of Australian exports by destination region in 2012-13 confirms that the industry’s returns are linked to Asia. Close to 75% of the total value has gone to Asia over the last three

Glen Fisher

years, up from 65% in the early 2000s. Exports to Europe and the Americas has declined over the same period. The share of total value going to South East Asia and Japan has remained stable dor ten years at about 30% and 20% respectively. A more recent trend is the growth in the share going to ‘Other Asia’ (including 10 Asian countries outside SE Asia and Japan): this was 15-18% for

much of the 2000s, but has been 25-27% over the last three years. The 2012-13 figures provide evidence of a notable year-on-year shift: in 201213, though Japan remained the top export destination by value, Greater China (China, Hong Kong and Macau) became the top export destination by volume. This was due largely to the year-onyear growth specifically in China-bound exports of fluid milk and whole milk powder (WMP). OECD-FAO forecasts are for Chinese consumption to grow 38% by 2022, plus China is facing serious challenges in growing dairy supply domestically. Its domestic production for the first half of 2013 reflects this—reportedly already 5-10% down.

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China-based researchers BSNABC estimate UHT milk accounts for 60% of the Chinese liquid milk market and consumption is growing at about 10% per year. • Glen Fisher is industry analyst with Dairy Australia.

WCB profit falls LISTED AUSTRALIAN dairy processor Warrnambool Cheese and Butter maintained sales in the last financial year but its profit fell by 50%. Total revenue was $A496.5 million, much as last year, but after-tax net operating profit fell 50.7% to $A7.5 million. Chairman Frank Davis said the 201213 financial year had been “difficult and disappointing”. He attributed the lost profit to a persistently high Australian dollar and high raw milk cost relative to market conditions. “However WCB has [set out to maintain] its long term revenue base and [underpin overseas] commodity revenues. A late surge in international powder prices and the depreciation of the Australian dollar was insufficient to wholly compensate for the depressed trading

conditions and outcomes in most of FY2013.” WCB’s balance sheet remains strong and gearing at 31.8% is well within policy range, Davis says. Working capital debt increased temporarily as WCB took advantage of the improved powder prices and lower exchange rates late in the year. At the same time Warrnambool’s situation improved slightly with an uptick in international powder prices and a depreciating Australian dollar. The company expects prices to help profits for 2014. A weakening Aussie dollar has expanded margins, and Warrnambool continues improvements. The directors have declared a fully franked final dividend of A11 cents per ordinary share, payable on September 27.

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Dairy News september 10, 2013

world  // 25

Badger shoot divides UK THOUSANDS OF badgers are being shot in Britain in a trial to tackle bovine TB. Culling has begun in Gloucestershire, Somerset and Dorset. The National Farmers Union is backing the shoot, but anti-cull protesters plan disruption. A High Court judge last month has granted the NFU and other claimants an interim injunction to protect farmers in and around

the pilot cull areas from unlawful actions by cull opponents. NFU president Peter Kendall welcomed the decision. “This injunction is to stop people intent on harassment and threats against farmers and landowners in Gloucestershire, Somerset and Dorset. “For beef and dairy farmers dealing with TB on their farms, these badger culls are an essential

Businesses should get on board MORE AUSTRALIAN dairy farmers are turning to

a board structure to govern their businesses, seen as a means of bringing greater professionalism and scrutiny to their operations. Consultant Mike Weise of Client Victoria, Warnambool, says many farms are realising the benefits of such a move. “There definitely seems to be an increase in the number of farming companies, family and corporate, establishing boards and then inviting an independent director to help them professionalise their multi-million dollar businesses. “The management decisions are still kept within the family but the board uses the independent director to advise on how improve the way the farm business governs, set strategy, achieve agreed decisions, plan for succession and follow legal and compliance regulations.” Weise recently attended an Australian Pacific Extension Network (APEN) conference in New Zealand entitled ‘Change: Chosen or Unchosen’, where the increase in larger family farms creating boards was hotly discussed. Weise, a professional director and member of the Australian Institute of Company Directors, says many farming families had not taken time to work strategically on their businesses. “A lot of families don’t sit down in a management team meeting and don’t have a governance structure to assess how well the team is executing the business plan. “With a formal series of meetings, some farms do decision making on the run and don’t set aside enough time to plan as a team and then review how the plan is tracking.” Weise says structures being adopted by dairy farms were either a board or a board/management hybrid. Farms looking to use an independent director often want someone experienced in governance, excellent at strategic thinking, has good business process and facilitation skills to help the board come to consensus, has corporate legal risk management and compliance knowledge and is impartial, says Weise.

in brief Beqa revenue touches $A1b AUSTRALIAN DAIRY processor Bega Cheese increased revenues in last financial year by 8.3% to $A1 billion and profit after tax by 24.6% to $A25.4 million. The company’s share price rose to a record $A3.09 following the announcement. Earnings per share grew 30.8% to 16.76 cents per share while dividends grew 15% to 7.5c/ share. Net debt was cut $A20 million to $A87 million and capital spending was relatively flat while production volumes rose from 203,765 tonnes to 210,052 tonnes.

part in the fight…. While we recognise not everyone agrees with the government’s TB eradication policy, and the need to cull badgers to start to reduce this disease in cattle, we acknowledge their legitimate right to peaceful protests. “But we cannot condone actions by extreme activists designed to harass, intimidate and threaten others.”

Kendall says many farmers will be glad something is at last being done to stem the TB cycle of infection. “We cannot go on culling tens of thousands of cattle every year because of TB while knowing the disease exists in wildlife uncontrolled. It is why the NFU will be working with the pilot companies to ensure successful pilot culls in the coming weeks.”

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26 //  world

Arla poised for more owners eUROPEAN DAIRY co-op Arla Foods is offering full

An Arla tanker collecting milk from a farm in Sweden.

membership to 1200 UK suppliers. If the offer is taken, Arla Foods will be owned by 14,000 farmers in Denmark, Sweden, UK, Germany, Belgium and Luxembourg from next year. Arla already has 1600 UK farmer owners. Under a plan announced last month, Arla’s board is proposing that its British supplier group, Arla Foods Milk Partnership (AFMP), through its investment arm Milk Partnership Limited, should become co-owners of Arla Foods from January 1 2014. AFMP, the supplier group, already supplies milk to Arla

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in the UK, and the group owns part of Arla’s UK business. Arla Foods chairman Ake Hantoft says over the years it has enjoyed a good partnership with AFMP. This group has expressed its wish for co-ownership and has shown it is willing to be owners “with all that this entails”. “The Arla board is convinced that having AFMP as part of the owner group will strengthen Arla considerably,” says Hantoft, It will cost an AFMP farmer 15c/L of supplied milk to gain access to Arla and payment will be spread over two years. Hantoft believes AFMP farmers are ready to make the investment “because fundamentally Arla and AFMP share the same view of the future: we believe that, as dairy farmers, a growing farmer-owned cooperative can give us the greatest security.” AFMP chairman Jonathan Ovens says the offer from Arla Foods presents its members “with an unrivalled opportunity to become an owner of Europe’s largest, and most progressive, farmer-owned dairy cooperative”. “Arla Foods amba’s mission is to secure the highest possible value for its farmers’ milk, while creating opportunities for their growth. The company’s track record and determination to continue to develop on the global stage leaves me in no doubt that this mission lives and breathes within Arla. “Quite simply Arla Foods amba is a business owned by farmers for the benefit of farmers. There is natural alignment of our interests as UK dairy farmers with the existing dairy farmers who own Arla Foods amba.” The new membership boost will not initially lift Arla’s milk supply, as the co-op already buys AFMP farmers’ milk. But the agreement will increase Arla’s stability and opportunities in the UK market, which Arla Foods chief executive Peder Tuborgh says this is important. “Arla’s strategy is based on growth and the road to growth is more milk. We need milk to continue to meet our customers’ requirements, grow with them and be efficient. All this is a prerequisite in order for us to be a stable partner for our owners and pay them a strong milk price. A stable raw milk supply is crucial for creating growth and profitability: this applies not only to Arla in the UK, but to the whole company,” says Tuborgh. A final decision on the membership will be made by Arla Foods next month.

9/3/13 9:23 AM

the first half of 2013, thanks to an upturn in global dairy prices. The European co-op’s total earnings for six months reached $8 billion, compared to $6.7b last year. The 19% increase is being driven by organic growth in Arla’s core and growth markets in addition to the effect of last year’s mergers and acquisitions in the UK and Germany, it says. Net profit for six months topped $240m, double that delivered for same period last year. The co-op says this is in line with its aim to maintain profit at 3% of revenue. “Arla has delivered a strong performance in a global market which, generally, has been characterised by higher prices due to milk production being unable to match the growth in demand,” says chief executive Peder Tuborgh. “We have adhered to our corporate strategy inside and outside Europe, and in the first half of 2013 this has enabled us to increase the milk price paid to our owners three times, which has increased earnings for farmers.” Last year, Arla underwent two mergers that have made it the largest dairy company in the UK and the third largest in Germany. The benefits of the mergers are now including increased production efficiencies and enhanced product portfolios, both strengthening Arla’s position in Europe.

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Dairy News september 10, 2013

28 //  OPINION Ruminating

EDITORIAL

Where’s the good news?

milking it... A sad tale

AN AUSTRALIAN boy (7) was reportedly at the centre of a courtroom drama recently when he challenged a court ruling over who should have custody of him. The judge, after considering who in the boy’s immediate family could take custody, and learning that domestic violence was common in the family, took the unprecedented step of allowing the boy to name his custodian. After two recesses to check legal references and confer with child welfare officials, the judge granted temporary custody to the Australian rugby team, whom the boy firmly believes is not capable of beating anyone.

A reasonable question

FEDERATED FARMERS has asked Northland councils a reasonable question: regarding regulation of genetically modified organisms (GMOs), is it right for Northland councils to spend money and time trying to regulate something already heavily regulated by the taxpayer-funded Environmental Protection Agency (EPA)? The question was posed by the Feds’ local government spokesperson, Katie Milne, who was subsequently “swamped by emails” from the righteous anti-GE pack, despite this question having “nothing to do with the debate on GM” and everything to do with best use of public funds. Milne notes that in 2012, councils collectively overspent by $700 million. Councils taking on the EPA’s role makes no sense.

Full-time cow housing

IT SEEMS New Zealand’s pasture-produced milk is not under threat from Northern Hemisphere farmers. A new study by a Dutch university predicts no more than 5% of dairy cows in northwest Germany and half of all cows in Northern Ireland will have access to grazing by 2025. The researchers, at Wageningen University, Netherlands, found grazing was in rapid decline in Europe. Grass-based milk production is in decline because it is linked with lower milk prices due to the seasonality of milk production, as well as lower yields and profits per cow and per hectare.

Long live the cows

A RECENT conference on cow longevity has heard there’s no one ‘magic bullet’ for keeping productive cows in a herd; instead, it comes down to a number of things. The Cow Longevity Conference, sponsored by DeLaval, was told cow comfort is important -- bedding animals, cooling cows, milking procedures, high-quality forages. The conference heard the oldest cow on record lived to be nearly 49 years old. Big Bertha, a cow from Ireland, is also famous for having produced 39 calves. No one expects you to keep your cows around that long, even if you could. But it would be nice to keep the good ones longer if they stay healthy and productive.

DAIRY FARMERS have been on a rollercoaster of late – especially given the daily misfortunes of Fonterra and its botulism debacle. To see their industry ‘in lights’ in the international media, and being described as less than perfect, has been distressing. Few will disagree Fonterra has botched its public relations response, not to mention serious mistakes at the Hautapu factory that started it all. Sadly the bad publicity is far from over: the various inquiries will be rolling it out for months. Right now we’re seeing a phenomenon you could call the ‘race to China’. Fonterra is sending a delegation there, MPI is sending its man there and John Key is planning a visit there too. With bags packed with humble pie they are hoping to placate the Chinese for their stuff-ups. No mention yet about the impact on other dairy companies and others tainted and affected in various ways. But amidst all the Fonterra turmoil is a spark of good news on the home front for dairy farmers who have kept their heads down and focused on their farming. Early indications are that the drought’s effects are being overtaken by the mild winter, and that production is now roaring away in this early spring. It might be too soon to lay bets, but hope is there for a good season. The other good news is the global milk price holding up and the good payout announcements by all dairy companies. One has to admire dairy farmers for their resilience during the Fonterra crisis. They have remained calm and focused on the issues on-farm, doing what they do best – producing high quality milk. They have been badly let down by Fonterra, whose directors and senior managers ought to be extending apologies to their shareholders, not just to Chinese customers.

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 september 10, 2013

opinion  // 29

Council’s final warning a prompt to action What should you do if the council sends you an infringement notice? This is the third of four articles by Hans van der Wal. BE SURE you will have

to part with cash if you get a letter from the council headed ‘Infringement notice issued under s343C of the Resource Management Act 1991’. But fear not, things could be a lot worse. Such a notice signals that the council suspects non-compliance, rendering you liable for prosecution under the RMA, conviction and a fine of tens of thousands of dollars. Your offence could be, for example, ponding of dairy effluent or allowing stock to access rivers in breach of a rule in a council plan. The notice is the lesser of two evils, but you should not ride your luck because, unless you take the right action quickly, you could still end up with a conviction and a much higher fine. An environmental infringement notice is the RMA version of a traffic offence notice, but with bigger fines – anything from $300 to $1000, depending on the magnitude of non-compliance. Like traffic fines, these notices are ‘instant’: unless you challenge them in court, you have to pay them even though you have not been convicted or sentenced by a Judge. You have 28 days from the original notice and if you do not pay that, a further 28 days under a reminder notice. If you do not pay within the further 28 day period, the fine will be collected by the court, just like an unpaid traffic fine. That will include the infringement fee and a collection fee. On the upside, like traffic fines, if you pay them on time, this is not counted as a conviction or a formal admission of guilt, but it does mean you cannot be prosecuted for that particular incident. That is always better than a conviction and a fine where the maximum is $600,000 for a company and $300 for individuals, trusts and partnerships. Although you can fight

an infringement notice in court, this is generally not worth it because the cost of the court case is invariably much more than the fine itself. Further, you can pay the fine under protest – by accompanying the payment with a letter you did nothing wrong. This is best drafted by a lawyer familiar with environment infringement notices, because if it is not done right it can make matters worse. Also, if the court finds that the council was right to issue the infringement notice, the fine could be higher than the original infringement notice. Paying the infringement fee is not enough, though, because if you have a similar non-compliance again you are likely to be prosecuted. The council would likely argue that the infringement fine was not high enough and a conviction and stiff fine were necessary to ensure you changed your ways. It would be likely that the court would agree. Worse, if you have statutory liability insurance your insurer could refuse your claim for the prosecution on the basis that you were reckless in ignoring the notice. The key is to fix the source of the non-compliance and then get the council to confirm in writing that you have done so. For example, for a ponding incident caused by an irrigator breakdown, this may involve repairing the irrigator and installing a fail-safe device that shuts off the irrigator if it fails. You would then want to get written acceptance from the council that the problem had been fixed. So if you receive an infringement notice under the RMA, you can do one of two things: (1) pay it, fix the cause, obtain the council’s written confirmation that you have and then breathe a justified sigh of relief that you did not end up with a conviction and a fine in the tens of thousands of dol-

lars; or (2) ignore it or just pay it but do nothing else, and then wait for the next non-compliance, result-

ing prosecution and extra high fine (probably without insurance cover). • Hans van der Wal is a

resource management lawyer at Duncan Cotterill. email h.vanderwal@duncancotterill.com

Hans van der Wal

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Dairy News september 10, 2013

30 //  opinion

Botu-geddon no more In the wake of the Fonterra botulism scare, Federated Farmers Dairy chairperson Willy Leferink reflects on the episode and where it leaves New Zealand’s international reputation. IMAGINE YOU are an executive in a

middling sized food manufacturer. Just as you sip your soy flat white, a technician calls up saying: ‘boss, we’ve got a problem.’ Do you: (a) do the right thing and initiate a recall, even though it risks a tonne of media bricks falling on your head? Or, (b), shrug your shoulders and reply: ‘she’ll be right’ and shred the results? To Federated Farmers, this is the biggest risk from the overreaction to Fonterra’s recall, in what has been a ‘mensis horribilis’ (horrible month) for the Kiwi dairy industry. It seems ages ago now, but on the last day of July Fonterra shareholders got a welcome uplift in the current season’s dairy payout. About 72-hours later we were plunged into ‘Botu-geddon.’ Editorials and venal* commentators questioned whether farmers had the nous to run New Zealand’s largest and most successful company. Those sorts of comments made my blood boil. We even got a few hotheads from inside our industry who wanted a firing squad.

Given the 180 degree turnaround few places on earth capable of confirmwhen we got the welcome all-clear last ing these things for sure. Finding and week, I am glad most dairy farmers, but confirming C.botulinum really is neeespecially Federated Farmers, kept their dle-in-haystack material. While Fonterra adopted safety first heads. Bizarrely, almost exactly a month and got roasted locally for it, the co-op will emerge with later, the events its reputation from late July and enhanced, as will early August were In a crisis, remember New Zealand. That reversed. Fonterra said, there’s still again revised its who kept their heads plenty for Fonterra forecast upwards, under pressure and and the rest of the then, a day later, we who panicked. Some industry to look got the best possiwill have the gall into, from quality ble news: the conassurance to the tamination wasn’t to show 20/20 public handling of Clostridium botuli- hindsight; they need the presumptive num. The Ministry to be called on it. test results – which for Primary Indussaw the cooperatries had sent samples for definitive testing by the United tive lose the media initiative from the States’ Centres for Disease Control start. Some will say the Government (CDC). They were able to confirm that the whey protein concentrate was botu- hopped into this too publicly and blew linum-free, lifting a huge albatross from it up more than was warranted. Frankly, they helped us out of a potentially our collective neck. As it turns out, the CDC is one of the deep chasm that had horrendous con-

sequences. Federated Farmers was plugged in from start to finish and I know President Bruce Wills is again making key points for New Zealand in the ChiWilly Leferink nese media. In a crisis, remember who kept their heads under pressure and who panicked. Some will have the gall to show 20/20 hindsight; they need to be called on it. With three inquiries to report plus MPI’s recommendations for quality assurance, we can look back on this with some perspective. Since Fonterra initiated a precautionary global recall that was successful, can anyone tell me why the word ‘scandal’ was used so much? I even heard it used during the press conference which confirmed there was no C. botulinum. Memories seem to be short these days about what a scandal is and is not. What of this year’s European ‘equine beef’ scandal? What about

Germany’s E coli infused killer organic bean sprouts from 2011, which killed 31 people? What happened in Germany in 2011 was a scandal in every sense of the word. There was official misinformation before the truth came out, by which time people were dead and sick. Against these two scandals, was Fonterra’s precautionary recall really in the same league? Our global customers will now see how seriously we take food quality and safety and compare that to the cavalier approach shown by other countries. Talk is cheap but we showed by our actions our assiduous approach to food safety. That won’t be lost. * Venal: open to bribery, selling influence as a service.

Dairy News september 10, 2013

agribusiness  // 31

Farm investment offers ownership pathway young farmers owning farms, and delivering regular cash returns to investors, launches this month. RBS Invest director Paul Schuler, Cambridge, says this scheme differs from typical farm equity investment schemes in several respects. Ownership of the land by investors is to be fully funded, with no reliance on debt by the investment group, and the property is held separately from livestock, plant and dairy company shares. RBS Invest’s first foray sees it seeking investors and farm operators for two Otago dairy properties. The investors in the land company receive a return from the lease, typically based on a percentage of the milksolids income relative to the land’s productive capacity and payout. It will typically equate to a return of 4-5% a year, received as a steady cash return paid monthly. A farmer operator Paul Schuler signing onto an RBS Invest property will own the livestock, plant and shares required, and pay a lease to the land investors. They will also progressively buy out the investors’ ownership of the land, ultimately owning the property themselves, typically in about 10 years. Schuler says the scheme differs from most existing equity ventures where the operator owns a share of the entire business including the land from the outset, and carries significant debt levels to do so. “The problem we have been seeing is the development of a progression bottleneck. Those operating partners wanting to get ahead in such ventures are unable to go forward, but are also unable to get out of the arrangement, often due to those big debt constraints.” The first two farms offered for syndication by RBS Invest are near Milton, Otago. ‘Circle Hill’ is 205ha dairy unit with a 119ha support block; the other, ‘Clarendon Farm’, is a 249ha dairy unit nearby. Schuler says part of the motivation for setting up the investment model was recognition by the RBS Invest board that the usual pathway to dairy farm ownership through 50:50 sharemilking was rapidly drying up. Sharemilking positions are estimated to have decreased by 1000 in the past decade. Schuler says there is no ‘rocket science’ in the scheme, one that is not unusual in many family farming operations. It allows the operator to progress to whole-farm ownership – “ultimately what motivates anyone who goes farming.” The company’s modelling indicates an operator with about 20% equity share in the farm business could achieve sole ownership in about 10 years. “For that operator, it also enables him or her to choose their own management system, company structure and operation style. They stand alone within the business, subject of course to performance reviews every year.” The company calculates that after 10 years an operator on one of the Otago properties, starting off with $2 million equity, could expect to have doubled that equity, and be able to shoulder the debt required to buy the entire operation. Unlike some schemes, RBS Invest does not impute capital gains into returns, and leaves that to individual investors to determine when assessing the farm investments. RBS was set up in 2006 by Duncan Coull, the 2000

Taranaki Sharemilker of the Year. Other partners include Dave Kilbride, Schuler and Rob Macnab. All have worked in banking and the dairy industry, and own farms.

Circle Hill dairy farm in Milton, Otago.

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Dairy News september 10, 2013

32 //  agribusiness

Wider role for Mikkelson Jamie Mikkelson

GEA FARM Technologies has appointed New Zealand managing director Jamie Mikkelson vice president area Australasia. He will head sales and operations in New Zealand and Australia, and remain MD in New Zealand. GEA Farm Technologies is owned by the GEA

Group, in 2012 earning EUR $5.7 billion. Mikkelson (40) was born in Matamata and has spent most of his life in Waikato. For 20 years he has worked at Milfos, Hamilton, where he helped grow the business from a start-up, alongside its founder, the late Philip

Locke. Mikkelson was a shareholder and the managing director of Milfos when Locke died last year. When GEA Farm Technologies bought Milfos in late 2012, Mikkelson became managing director of its New Zealand operations. He is now one of eight global VPs, respon-

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sible for sales and performance of 190 employees and 50 service partners. Mikkelson says the acquisition of Milfos by GEA completed the companies offering of a ‘total solutions provider’ for pastoral dairy farmers. New Zealand is being positioned by GEA as a ‘world hub’ for pastoral farming. He says business is about people first and products second. “My role is aligning people and the business to a common strategy and helping them deliver on that strategy.” The challenge of managing Australia was not dissimilar to the challenges of managing the differences between farming in, for example, the North and South Islands. “While New Zealand and Australia are similar,

they are also very different – I don’t expect to take a NZ approach in Australia and likewise what works in Tasmania will not necessarily work in New South Wales. It’s about understanding in real detail the drivers, challenges and where we can add value,” says Mikkelson. Ownership by GEA Group allows for products made in New Zealand, such as FIL and Milfos, to be marketed elsewhere in the world. In New Zealand GEA Farm Technologies owns and markets milking machine and farm management equipment from Milfos and WestfaliaSurge, dairy hygiene and animal health supplies from FIL, effluent handling equipment from Houle and barn equipment supplies from Norbco.

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Kerikeri High School student Jesse Prendergast, 17, with his winning science project showing duckweed can reduce nitrogen concentrations by 95%.

Duckweed study wins award A NORTHLAND student’s study of using duckweed to reduce nitrogen in dairy effluent runoff has won the 2013 Northland Regional Council ‘Excellence Award’. Kerikeri High School student Jesse Prendergast’s project ‘CleaN2’ took 100 hours over six months. He added nitrogen to water samples until levels matched those found in dairy farm effluent ponds. He then experimented with duckweed, finding the small, freefloating plant, which grows on the water’s surface, reduced nitrogen concentrations by up to 95%. He experimented on samples containing nitrogen in various forms including ammonia, urea and nitrate. Generally, he found 10g duckweed/L water reduced the quantity of nitrogen compounds by 550mg. Now he wants to do more on-farm research with dairy farmers, to prepare for his ‘Realise the Dream’ nomination to be sent to Wellington next month. 20 students are selected nationwide from science fairs to attend the weeklong event. The Northland Regional Council prize is $1000 for the winner’s university studies and must be used within three years. Jesse, a year 13 (seventh form) student, will use his award in 2014 towards a four-year BE (Hons) in engineering science at the University of Auckland. He began entering science fairs at age 10, and hopes to work in science, creating waste-reducing products for environmental sustainability.

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Dairy News september 10, 2013

34 //  management

Wintering subject of study andrew swallow andrews@ruralnews.co.nz

WHAT MAKES a wintering deal work, and what causes problems? DairyNZ regional leader Canterbury/North Otago, Virginia Serra, aims to find out in a study she’s doing as part of a Kellogg’s Leadership Programme. “I talk to a lot of dairy farmers and there’s always this issue that they may not get the results they want,” she told Dairy News. “It can be quite a frustrating issue and I want to hear what people on the other side are saying.” Consequently she’s surveying dairy farmers, graziers, consultants, and stock agents, to find out what factors in wintering relationships produce a win-win for dairy farmer and grazier, and what’s different where things don’t work out so well. “There are some very successful relationships. What do they do to make them work?” One factor she’s already noted is how late prices are sometimes negotiated. “There has to be a better way to set the price.” Not many wintering deals include

a written contract, she’s finding, but where they are used she’s hoping to identify the best format. “Wintering is quite an important aspect for the dairy farmer but it is also important for the grazier because they can make good returns.” Where things don’t go to plan dairy farmers may take things into their own hands, with a run-off block, only to find that proves to be an even more expensive option. “Paying someone to do it is probably cheaper if you get a good result.” Also, many run-off blocks end up being converted to milking platforms so contracted out winter grazing makes a comeback. To keep the project manageable within the Kellogg’s course timelines – she has to write it up by November – she’s focussing on her region but says she’s happy to send survey forms to farmers outside that area. If enough responses are received the data may be analysed for a report to the likes of the New Zealand Institute of Primary Industry Management and/or the South Island Dairy Event. E-mail: virginia.serra@dairynz.co.nz Responses will be strictly confidential.

Watch out for machines MOTORISTS ON rural roads are warned to watch for rural contractors and their large machines as the hay and silage season starts. Rural Contractors New Zealand (RCNZ) president Steve Levet says with spring here and grass growth starting to peak “contractors will be cranking out their gear, getting ready to hit the roads with tractors, balers and silage wagons.” “So there is going to be more and larger machinery on our roads than normal as contractors’ travel around the country.” Levet is advising motorists to be extra vigilant and patient when approaching rural contractors and their machinery. “Some of our gear can be pretty big and it may sometimes be hard for operators to see prevailing traffic approaching them. The last thing they want to do is hold up traffic and they’ll make every effort to ensure motorists can pass them in a safe and timely manner. “All we are asking is that motorists exhibit patience and understanding.” And take a wide berth when passing machinery, he suggests. Meanwhile, with new rules for agricultural vehicles having come into force on June 1, RCNZ is reminding contractors to familiarise themselves with these new regulations. www.ruralcontractors.org.nz

Virginia Serra

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Dairy News september 10, 2013

36 //  management

Heat detection easier with automation Heat detector patch

BIG LABOUR efficien-

Heat scanner installed over race. It can also be installed over bail in rotary.

cies and more accurate heat detection are achievable by automation, says TruTest Group. This was a prompt in the company’s development of its MilkHub heat

detection system, says group product manager Shane Dooley. TruTest says that, whereas current methods of heat detection rely heavily on staff knowledge to spot the signs of heat

– with a risk that many heats will be missed or AB straws waste on no-heat cows – infra red scanning and self-adhesive reflective patches raise detection to a new level. The company’s

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MilkHub heat scanner (infra red) and heat detectors (the patches) “improve on the benefits of using heat mount detectors by minimising the requirement for visual assessment during milking”. “Pressure from a mounting animal reveals a highly reflective layer. While still visually detectable, when a cow walks under the MilkHub heat scanner the infra red beam detects the extent the patch has been rubbed and indicates whether the cow needs to be checked or AB’d by a flashing light

and audible beep,” Dooley says. The Milkhub heat scanner can also be integrated into the MilkHub rotary system (through in-bail identification), enabling automatic drafting of cows on heat. Says Dooley “staff need not do a thing: cows on heat will be automatically detected and drafted and waiting in a pen after leaving the shed. Also, the drafting data will be automatically captured in the MilkHub online management tool, providing a record of cow EID, heat detection timings and date, allowing closer management of breeding.” The MilkHub system suits herringbone and rotary systems. Tel. 09 978 8888 www.tru-test.com

Right staff, education help curb animal abuse FEDERATED FARMERS says hiring the right staff

and better education will help curb animal abuse on farms. Employment spokeswoman Katie Milne says losing your temper and injuring animals costs a farm in lost production and vet help later. “We have had a few cases due to the calving season. This is a time for farmers to assess who they are hiring and whether they are hot-headed and prone to lashing out. “All staff need education on how to handle animals because animal abuse is inexcusable. We recently surveyed members regarding the issue, and hope to [learn] how we can better inform them.” Farm worker Saul Beaumont was recently sentenced to four months’ home detention and disqualified from working with cows for five years. He had pleaded guilty to 46 charges of animal cruelty after breaking the tails of 200 cows on a dairy farm in Taranaki. Judge Peter Spiller, Hamilton District Court, had considered a jail term of one year, but Beaumont’s early guilty plea, remorse and anger problems caused the penalty to be reduced to home detention. The case was brought by the SPCA after Beaumont’s employer reported him. Federated Farmers Dairy chairman Willy ;eferink says the sentencing shows animal cruelty will not be tolerated. “Rather than hanging the individual out to dry, we need to learn from these issues and minimise the opportunity of this happening again. We feel this sentencing has got the balance right and by no means undermines the seriousness of the crime.”

Dairy News september 10, 2013

management  // 37

Russell Napper

Tree planting helps pasture growth AUSTRALIAN DAIRY farmers Russell

and Maxine Napper believe trees make a better dairy farm. Reducing salinity, keeping cows warm and cool, encouraging pasture growth and making it a better place to live and work is a decent short-list of reasons. The Nappers run 200 cows on 70ha in the Macalister Irrigation District in Sale, Gippsland, Victoria. “I like trees and I could see the reaction of the dairy cows,” Russell says. “On a stinking hot day in a paddock without trees they’ll all crowd around the trough. The dominant cows will get in, whereas the heifers won’t get anywhere near it. “Whereas when you have trees, the dominant cows might take all the shade but at least then the younger ones get access to water.” The Nappers, mindful of animal welfare on their farm, say trees are the single most important factor in maintaining a happy herd. “On a very hot or very cold day the cows are clearly happier in a paddock with trees in it,” says Russell. Having contented cows, however, hasn’t meant a drop in production. Instead the cows cope better with extremes of temperatures, while pastures thrive in the shelter of planned plantings. “You see a cow on a hot day standing there panting and you wonder how much energy she is using trying to stay cool. But if she’s feeling comfortable she will go out and have a bit of a graze then come back.” Giving land over to trees has caused pasture – and potential profitability – grow significantly. Since starting planting he has noted a threefold increase in dry-matter

consumed per hectare. Better care of the land has lifted milk production. “We produce 1.5 million L off 60ha.” In the early 1990s a routine inspection of a bore revealed the water table had risen dangerously high. He had seen it before and knew that if nothing was done the land would soon become barren. “I remember in 1961 the paddock over the road from my school turned black after we had a wet winter. In the 1950s irrigation was extended to Nambrok for soldier settlement and within three years the water table rose 20 feet. The bottom end of Nambrok just turned black.” Indiscriminate land clearing and irrigation on farms was causing salinity. Now, Napper says, reintroducing trees is allowing the land to heal itself. “There was a problem here and the question, was what we are going to do about it? We knew getting some native vegetation back would be helpful.” A salinity trial (Joint Action Salt Action) prompted Nappers to begin many tree plantings that have transformed their farm. After patchy early results, Russell helped form the Clydebank Landcare Group and started to get the right plants for his property. “We did some first direct seeding trials in the area. And that was quite successful in 1991-92.” With the growing trees sucking up water, the water-table started to recede. Adding a groundwater pump (one of several in the area) has helped turn vast areas of formerly unproductive land into good dairy pasture. The government helped pay for the pumps, which are maintained through a levy on irrigation water.

Trees help make a better dairy farm, according to Australian farmer Russell Napper. 3599 Metabolizer halfpg vert.ind1 1

9/11/08 9:20:42 AM

Dairy News september 10, 2013

38 //  management

Bumper crop of heifers TWO YEARS ago, Rotorua dairy farmer Therese Phillips started planning for a bumper crop of heifer replacement calves, and this year, that’s exactly what she got. “Three weeks into calving we had just over 250 cows in and 120 heifer replacements born; that’s way up from last year when we only had about 85 in total.” With 420 cows on 205ha, the lower order sharemilker says their season is off to a good start, because they chose to make their herd’s reproductive performance a year-round focus, not just something to think about at calving. “By lifting our 6-week

in-calf rate from 54% to 74%, we’ve seen huge benefits this season already and not just with replacement numbers: calving was faster, easier to manage, and August production was up 18% from having more cows calved and back in the shed earlier.” When Phillips returned to run the family farm in 2011, she arrived just in time for a “long and hectic calving” after only 50% of the herd got in-calf from the first six weeks of mating the year before. She could see the problem, and went to the farm’s LIC customer relationship manager, FarmWise Consultant and vet, for a solution.

“We went through every report we had on the last mating including the Fertility Focus Report which shows whether you’ve been bad at detecting on-heat cows, or if they just aren’t coming on at all. “It was clear we had a few issues, so I asked lots of questions… and we identified what changes we could make straight away and what could take a bit longer. “First we split the herd into two mobs after calving – one with young and skinny cows, and the other with old and fats, and we saw a big improvement in the young ones; they weren’t getting bullied out of feed.

“We increased the in-calf rate by 4% that season, but the big jump came in this last season just gone.” She puts the jump down to cows being in great condition all yearround, and the support she received from the farm staff and her dad, the farm and herd owner. “We split the herd as quickly as we could after calving again too but the cows were definitely fed better because we’d lengthened the round by 10 days as well, so they were always going into good feed and getting a bit of PK biscuit too.” For mating, they used CIDRs, but only on the cows that would pay off,

Therese Phillips

including younger cows and the ones in better condition, and made a plan to take care of all the small details that can make a big difference at mating. “We monitored premating heats closely, Metrichecked everything, and spent heaps of time seeing if they were on during AB. The biggest thing for me is the heifer replacement numbers because once we hit 100, I get anything over that for my own herd, and I’ve done pretty well with that this year.” Mating starts on October 20 and it’s much the same plan for the farm, with a few extra strategies and a goal to hit the industry 6-week in-calf rate target of 78%. “I’m confident we’ll

hit target this year, and hopefully next year we’ll go up again. “We split the herd 10 days earlier this year, since we had more cows in. We’re piling the feed into them and we’ve got a good plan sorted for mating too with 6 weeks of AB and

then short gestation bulls for some of the later cows, because there’s still a huge difference between calves born day 1 and day 42. “Then the bulls go in the paddock but hopefully they won’t have much work to do.” www.6weeks.co.nz

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Starts as soon as cows calve Pile feed into colostrum mob, health treatments and minerals as required Split milkers into mobs ASAP, so young ones and late calvers are looked after Tail paint 35 days before PSM Metricheck every cow CIDR anything that still has paint on at 10 days before PSM Heat detection aids from PSM “If in doubt, draft her out” during AB

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Dairy farming has its fair share of risks, many of which are beyond our control, however when it comes to maximising genetic gain, I appreciate having the opportunity to make a choice on the balance of risk and reward. Genomics has given us many beneďŹ ts but evaluations have not always met expectations. Because of this we took a fresh look at how we think we can best deliver value from our elite young sires. Premier Sires Forward Pack provides access to our top ranked Daughter Proven bulls in combination with the very best Genomically Selected sires supported by solid pedigrees, strong cow families and outstanding ancestry information. The science of genomics is continually evolving and there are risks with any new science but we are delighted to offer you the choice. Forward Pack is what I am using on the LIC dairy farm.

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Dairy News september 10, 2013

40 //  management

A passion to see Friesians achieve Jason Halford, passionate about dairying and his herd of 265 Friesians, cares well for his animals, a hallmark of his highly successful career. Reporter Peter Burke met him on the Horowhenua farm where he sharemilks. years ago he won the title Kiwi two-year OE in the of ‘farm manager of the UK, working in a bar. 91ha near Opiki, north of year’ in the national dairy At age 25, realising he Shannon. It’s excellent Industry awards. dairy country and a potato needed to upskill to go “I now understand places in the dairy indusgrowing area. The farm what I thrive on is owned by John and that is on Seymour and is “We tend to wanting to win beautifully set up. underestimate how and aiming to Milking is through and wanting to a modern herringmuch a cow can eat be the best I can bone shed and the given the opportunity. be. I realised in tanker turnaround They can eat a lot of food that first attempt area is neatly landafter calving.” at the awards scaped. The farm’s that I needed to utility sheds are better undernew and modern. stand dairying and agritry, he went to Massey Jason and his wife culture. It made me look University, taking a bachNikki moved here three hard at myself and what’s elor course in applied years ago after managing important to me in farmscience, majoring in agridairy farms in Manawatu. ing. culture. Jason (35) was born in “Other people who Armed with a degree Pahiatua, a sort of townie and passion for the indus- have been through the who began in dairying try, Halford began to start dairy industry awards say when he left school. He it’s helped them too. It’s to set goals and made a also worked in a butter not rocket science, it’s just factory and did the typical plan to succeed. Three

THE FARM is not large:

Jason Halford says he never accepts a drop in milk production.

focusing on your goals and making them achievable because you have to realise you’ve got a short time in dairying because it so hard

it’s a matter of feed feed feed . We tend to put our cows into winter grazing and we spend a lot of money on that and then the cows come home and we feed them a little bit less because it’s spring and we are a bit tight. But we shouldn’t do that; we need feed our cows and frontend our milk production.” Halford says he never accepts a drop in his milk

tive and solution focused and develops strategies to deal with problems on the farm. And he is driven by the excitement and desire to see his animals perform to their potential and to give them whatever it takes to be the best. “We tend to underestimate how much a cow can eat given the opportunity. They can eat a lot of food after calving. I think

on you.” Halford is goal focused. He has long and short terms plans and makes sure they’re always there in front of him. He goes as far as making up passwords to remind him of the goals every day. He makes lists and ticks off what he’s achieved and he constantly sets new challenges for himself. He sees himself as posi-

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Dairy News september 10, 2013

management  // 41

their potential

New arrivals: calves on Jason Halford’s farm

production. “If I peak at 2.8 I’m not accepting a drop of 7-10% a month. I am challenging myself to a drop of only 2-3% a month.”

Feeding his cows well is one of Halford’s key goals. He believes cows can be so much more productive if they are fed better. “If the BW and PW

is increasing, our cows are becoming more efficient. That’s fine, but are we producing any more milk from those efficient cows? I don’t know. I tend

to think we may be missing the boat a bit when it comes to getting the best out of our cows.” @dairy_news facebook.com/dairynews

A key strategy is the feeding regime for cows.

Feeding more supplements JASON HALFORD operates on system five and that means feeding a lot more supplements – mainly grain and PKE. “What’s really important is to understand what your system is and not deviate from it. Up to 32% of their diet is supplements. I see PKE as offering a great return as a supplement. I have used it in the past and it’s a good product and my cows like it and they produce milk off it. It’s financially viable and readily available.” A key strategy is his feeding regime for his cows, especially their daily intake. “I am always calculating that the cows get the same amount of feed each day. So the cows are not getting fed 15kg one day and 20kg the next: every day is the same. That means the cows are always full

and don’t gorge themselves. They are my asset and they can produce so much more milk,so I have to give them the opportunity to prove themselves.” The feeding policy is paying off. Three years ago his cows were on average each producing 596kgMS; this season he is targeting 625kgMS. Over the herd this equates to 165,652kgMS per annum, a big lift in production. He applies the same philosophy to feeding calves. He weans them at 8-10 weeks and gets them onto solids as quickly as possible. His goal is to breed strong animals that can come into the herd and compete with the cows producing 600+kgMS annually. He’s also focused on feeding cows that have just calved. The cows’ body condition is changing

and they need to get all the feed they need to settle into being milkers. Halford and wife Nikki now have a baby son and now are challenged to get their work/life balance right. They accept this is a busy time of the year and that long hours and hard work go with the territory. Says Halford, “I love my cows. They are enjoyable to be around especially when they have got weight on them and don’t look like toast racks. “System five is still profitable; it’s a matter of staying on track and I can’t see myself in a great hurry to move on. I want to grow this herd so that it’s a really saleable item. I want cows that are two to six years old, with sound quarters and producing high.”

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Dairy News september 10, 2013

42 //  management

Learn it online LIC HAS launched an

‘online learning centre’ to help farmers to update skills and knowledge without leaving the farm. LIC’s general manager of farm systems, Rob Ford, says the pace of technology improvements is rising in dairying. “We introduce new and

LIC’s online learning centre helps farmers update skills.

improved systems every day…. All these things are logical and easy to use but the challenge is to deliver the information in the right way, and at the right time, to match the demands on farm. “We wanted to give farmers an online resource which would be fun to

use and accessible around the clock. Currently the centre contains 48 interactive audio and video learning modules and over time we’ll add more modules.” Modules on the new centre, which is free to LIC farmer customers, help farmers get more value, easily, from their LIC animal recording. It also contains a module on tagging management. LIC is finding more farmers are opting to

install a farm automation system. “We’ve now got a range of Protrack farm automation systems which cater to the size of the herd and the needs of the farmer, and the learning centre contains insights and tips for getting more value out of the system. “ And the centre is accessible 24/7 – “whenever farmers want to find out something, either for themselves or their staff.”

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AT LEAST 3000 dairy farmers have this year done training courses run by LIC. HR general manager Megan Scott says farmer training has “has changed dramatically in recent years”. “Farming today is complex. Many farmers manage larger properties and herds than their predecessors did, and doing this well means they need to utilise the best technologies…. “We develop training on topics which most appeal to farmers, and deliver them in their communities at times which fit in with the farming calendar.” In the last 12 months LIC has run 300 training modules in class-rooms and on farms. “We look at the locations for training to ensure it’s easy for farmers to attend: in the last year Waipapa, Te Puke, Papakaio, Horsham Downs, Ngatea, Ashburton, Gore and Morrinsville.” Scott says some modules are aimed at helping farmers get maximum value from their Minda herd records. “There is huge interest in going beyond the basic functions to understand how to tailor reports so, say, they can monitor the reproductive performance of the herd. The same approach applies to extending the use of our Protrack farm automation systems. “The important thing is that the information is delivered when farmers need it – ie calving information in the lead-up to calving. When NAIT compliance was introduced we also developed a special module to help farmers understand what they needed to do – and how we could help make it easy.” Scott says farmers can tailor courses including group class-room sessions (free), one-on-one tailored training and now online with the launch of the ‘learning centre’.

Dairy News september 10, 2013

breeding / animal health  // 43

Data helps fine tune herd WITH BETWEEN 600 and

700 cows in herd recording, Australian farmer John Lillico, has plenty of data. He recently discovered the Genetic Progress Report makes that data work for him as a management tool. Drawing upon his herd recording data, the Genetic Progress Report shows the impact of Lillico’s breeding decisions and tracks his herd’s genetic improvement over time. Lillico, and his wife Vicki, dairy near Smithton in northwest Tasmania, with help from two to three employees. About 75% of the herd calves in spring, the rest in autumn. Production averages 90009500 L/cow/year from a mostly pasture-based feeding system. Cows get about 2.5 tonnes of concentrates in the dairy each year.

Although Lillico has always taken a strong interest in breeding and genetics, it has been in the context of operating a commercial dairy business. The herd’s Genetic Progress Report shows it ranks in the top 10% for Australian Profit Ranking and well above the national average for type, longevity, fat and protein. The results confirmed that Lillico’s breeding strategy over the years has worked. He selects bulls based on high APR and type. “We have always believed in the science behind the APR system. We’ve always selected from the top bulls for APR while paying close attention to their ABVs for type. And our report confirms our experience: that following the APR for selection delivers us the most profitable

bulls.” Lillico uses a combination of bulls bred in Australia and overseas. “When we are looking at bulls from overseas, I’ll use their ABV(i) if they are available. We find them more reliable than the breeding values from their country of origin.” The Lillicos have traditionally used progeny test straws over a small portion of the herd but in the past 12 months have begun using genomically tested young bulls instead. “We are looking forward to seeing the full proofs from these bulls when their daughters come into production,” he said. Lillico’s main interest in the report was the traits it highlighted for improvement. “My initial reaction to the report was that it highlighted the traits we need to keep focussing on, par-

John and Vicki Lillico at their Smithton dairy property.

ticularly mastitis and daughter fertility. It also showed how mating decisions from year to year can quite dramatically affect the herd’s overall genetic trends and therefore profitability. It certainly puts a new perspective on the data from our herd,” he says. Lillico says he was surprised and disappointed by the herd’s graphs for mastitis resistance and fertility, although both sat

at about national average. “Daughter fertility has become a big focus for us because we don’t want to cross breed. “I think genomics will help us identify young bulls that rate well for both profitability and daughter fertility.” Like many herds, Hindlee’s graph for genetic progress for mastitis resistance fluctuates from year to year.

“The mastitis graph made us step back and look at what might have contributed to the curve going up and down. I think it may be due to using some promising young bulls that didn’t have a lot of daughter data and a couple of them fared quite badly for mastitis resistance. That dates back to the pre-genomics years and I’m hoping genomics will help us avoid those sort of mistakes in the future,” he says.

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Dairy News september 10, 2013

44 //  animal health

Plan now for foot and PAM TIPA pamelat@ruralnews.co.nz

EVERYBODY NEEDS

a plan for foot and mouth disease (FMD), says Livestock Improvement Corporation (LIC) bull farm veterinarian Ken Cottier. It was the one major take-home message he wanted to give from a briefing session on LIC’s preparedness to respond to an outbreak of an exotic animal disease (like FMD). “Everybody that trades or has anything that can pass on the virus, that is cattle, or germplasm or any other animals that are susceptible to FMD, must have a plan,” he says. “One of the hardest things to do in an emergency is to think of what to do immediately. With

an FMD outbreak in New Zealand, the most important part is you do the right thing to try and stop it or limit the spread.” In 2004 LIC produced

Industries, says Cottier. “They will dictate everything. They will issue a control area which gives them the legal right to stop people moving cattle,

“One of the hardest things to do in an emergency is to think of what to do immediately. With an FMD outbreak in New Zealand, the most important part is you do the right thing to try and stop it or limit the spread.” a 40-page plan – in 2005 there was an FMD scare on Waiheke Island and they used the document to dictate what LIC would do to protect its germplasm and animals. In the event of an outbreak LIC first must take instruction from the Ministry for Primary

germplasm, or anything else that might harbour FMD. “We don’t know how big the control area would be – if it was up north it might be north of Auckland, if it was in central North Island it might be right through the North Island and if it’s near Wel-

lington, they might say the whole of New Zealand. “There’s a national standstill period for however long it takes to delineate the extent of the outbreak. That could be anywhere from a week to a month. “Everything stops moving and there’s a period of investigation to delineate the boundaries of the outbreak and then restrictions will be put in place.” The first requirement is to follow what the ministry says. But secondly, “we have to look after ourselves, protect our livestock, protect LIC semen stocks and maintain enough stocks of quarantine semen to maintain our national dairy herd if necessary”. Those things that can harbour FMD on the

Ken Cottier, LIC

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team samples received from vets. FMD can last in a frozen sample indefinitely. It is very contagious and can last outside the host animal for up to a couple of weeks. What LIC would do

immediately on the first day is straightforward and simple: lock all farm gates, stop all semen collections, cease all stock movements and farm visits. All those procedures are aimed at protecting its bulls.

Dairy News september 10, 2013

animal health  // 45

mouth – vet HIGH LEVEL DISINFECTION FOR ON-FARM USE

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After a FMD outbreak, farmers must do the right thing to try and stop it or limit the spread.

“On our farms, all our animals are behind double fences and all our fences are at least 2m apart. You never get nose-to-nose contact but because FMD can remain outside the host for quite a long time, faeces on boots or tyres can bring it in.” Any farm staff who have contact with animals outside LIC are sent home. “During the Waiheke scare, that is what happened – guys went home for three days. The other staff stayed and they are the only ones that go

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on farm.” The disease can be brought on to a site on “two legs or four”. But with a lock-down management plan in place, the only way the virus could enter would be through ‘pluming’, which is far less likely. This is when you get large amounts of virus at any one spot, usually only in pig farms. “If there are a lot of pigs all infected they produce a huge amount of virus and it can plume like a cloud and go by air movement.”

Cottier says with an FMD outbreak, all services will stop during the standstill period which would probably be two weeks. “Nothing will happen including mating even if it’s in spring. All techs have got to home and lock up their tanks of semen, and equipment and vehicles.” They will need to wash clothes and disinfect equipment before they attend to any of their own animals. “All herd testing will stop, all equipment on farm stays there, all vehi-

cles are secured and disinfection procedures follow. Milk samples will be disposed of but chemically disinfected first and there are further procedures for that.” To make sure semen is safe, all semen is quarantined for 60 days as a standard practice. This is based on an assumption the disease could have been present in New Zealand for up to 30 days before detection. In reality it is likely to be detected a lot sooner than that.

precautionary steps part of daily operations at lic PRECAUTIONARY STEPS in case of a disaster such as an FMD outbreak are part of everyday operations at LIC, says AB manager Scott Ballinger. Those steps double the amount of handling required for each straw and come at a cost. But they both protect LIC genetic stock in the face of an outbreak and ensure it will never pass on the disease in its products. Ballinger says on site there are several tanks with several hundred thousand straws containing stock going back to the 70s, called genetic insurance. They take 80 straw from every bull to put aside for DNA which doesn’t get used. With every batch off a bull, four straws are put aside for museum stock. All the semen is packaged, frozen and comes into the warehouse, says Ballinger. There’s a series of tanks, each

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holding about 200,000 straws. A tank is filled and it’s locked down for 60 days. “So if there is an outbreak and we catch that with clinical signs in our animals, we will know our stock is not clean so it is discarded. “By going through this process we have to handle each straw eight times. If we were just processing the straws to send out to the field we would have to handle it four times. The labour itself is a huge cost and tanks cost $20,000 each.” After the 60 days all stock goes into “quarantine” in the bulk warehouse. At present it holds about 2.4 million straws. All that stock has been through the process and is sitting there in a clean state. Virgin nitrogen is used and the stock only moves in one direction. LIC also has 1.5 millions straws sitting at Christchurch.

All have gone through same 60 day process. “With a disease outbreak, if it knocked out the North Island it is likely to stop us processing liquid semen. We have to have stock somewhere else and it’s ideal to have it in the South Island, so we can continue to distribute semen for insemination during the season. “It seems a funny place to have it, in Christchurch with the earthquakes, but it’s out at Hornby which is pretty stable. With the earthquakes, and also the ash clouds a few years ago, we had to use that stock and distribute it out to technicians.” At peak times LIC distributes 100,000-120,000 straws a day so in an FMD outbreak logistics would be “horrendous”. But they believe with their management plan in place, staying operational would be achievable.

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Dairy News september 10, 2013

46 //  animal health

UV milk purifier outs disease in Oz calves CHRIS DINGLE

A MILK purification Calf manager Barb Habner and James Mann inspect this year’s calves.

system has overcome calf health problems in a large dairy near Mt Gambier, South Australia, reports

the supplier, WestfaliaSurge. James and Robyn Mann run Donovan’s Dairy, at Wye, milking 2200 cows at peak time on a 116 unit rotary platform. “Some time ago we

could not get on top of salmonella issues,” says James Mann. “Every time we vaccinated, we got another strain. It was a massive drug cost, so we decided to go with a UV Pure purifier system. It was the logical next step – we weren’t getting anywhere with vaccines.” The WestfaliaSurge UV Pure ultraviolet calf milk purifier is a modular unit built around stainless steel UV turbulators. The UV lamp is inserted into a quartz tube allowing the light to penetrate the milk as it passes over the tube and into a separate calf milk vat. A hot water circuit allows cold milk to be brought up to feeding temperature. The flexible system is scalable depending on the size of the installing dairy operation.

that time. Barb Habner has been managing calves at the farm for 10 years and says sick calves have been minimal since the new system was started. “Now, if any calf gets sick, it’s one course of antibiotics and they’re fixed.” All the mastitis milk goes into the 1000L tank and Habner tops it up with fresh milk for the required amount. “We purify what we need for the calves that day, and tip out what’s left.” The UV Pure is automated and easy to use with minimal training required for operators. It will start automatically at pre-set times and calculates the required process time for the amount of milk, reducing time and energy. It incorporates an automatic clean-in-place wash pro-

“It is easy to use, giving us healthy calves where it was previously hard work…. This is so much better than mixing powder. Life is easier and the UV Pure works in well with the daily routine.”

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Waste milk from mastitis cows is often discarded, but if treated properly to lower bacterial or pathogen levels,it can replace milk sources that calf-rearers would otherwise need to buy. The ultraviolet light in the UV Pure system penetrates bacterial cells in the milk, destroying their DNA bonds, killing the bacteria and eliminating their ability to reproduce and grow. It kills the bacteria without affecting the nutrient value of the milk, and the immune factors and proteins remain unchanged. Vitamins A, B6, B12 and C remain intact and there is an increase in Vitamin D, which does not occur with traditional heat pasteurisation. The milk is never heated above feeding temperature, helping to preserve its beneficial immunoglobulins. Donovan’s Dairy installed the UV Pure system a year ago and it has worked during two calvings, totalling 1050 calves with just 15 losses in

cess after every batch. “You select how many litres are in the tank, press ‘go’ and it does the process and shuts off when it’s finished,” explains Habner. “When we have colostrum milk in, we show it as twice the actual volume.” The colostrum milk is purified and fed separately at the calving pad. They clear the pad three times a day during calving, when they have 40 cows calving per day at peak time. “From the purifier the milk goes into a cooling tank to maintain it at 14°C if we need to store it otherwise it comes out at 20°C – or whatever we set it at – and straight to the calves. “It is easy to use, giving us healthy calves where it was previously hard work…. This is so much better than mixing powder. Life is easier and the UV Pure works in well with the daily routine.” All the calves get 4L/day and are weaned at 110kg. While they are in the calf shed, they get ad lib grain and hay and access to water.

Dairy News september 10, 2013

animal health  // 47

Bryan Dickson

Top-ranked Oz breeder rick bayne

AUSTRALIAN DAIRY farmers and Holstein breeders Bryan and Joanne Dickson have had their herd ranked as the best in Australia. It is the first time in ten years that a south-west Victoria breeder has topped the Australian Profit Rankings. The feat is even more remarkable as the Dickson’s Emu Banks stud herd of 728 is double the average size. The Dicksons, at Terang, have also bred two heifers in the top 20 rankings. The number one ranking has been revealed in the August release of Australian Breeding Values (ABVs) by the Australian Dairy Herd Improvement Scheme (ADHIS). The Australian Profit Ranking (APR) is the main breeding index available for Australian dairy sires and is based on a series of nine production and non-production traits. Dickson says the selection of highly ranked APR bulls and strict culling of lesser performing cows had led to the national success. “It’s all in the genetics. Breeding with good bulls is the top of my list,” he says. ABVs express a sire’s genetic potential for a single trait such as milk protein content or milking speed. A breeding index reflects a sire’s genetic potential for a combination of several traits, making it easier for dairy farm-

ers to compare the suitability of different sires for their herd. The APR, the main breeding index available for Australian dairy sires, is a single index that reflects nine traits that influence net farm profitability, including production (milk, fat and protein yields) and non-production traits. Non-production traits include survival (longevity), fertility, mastitis resistance, liveweight, temperament and milking speed. The contribution of each trait towards the final APR value is ‘weighted’ according to its relative contribution to profitability. Michelle Axford from ADHIS says the Dickson’s top ranking is an even bigger feat when the herd size was considered. “Bryan and Jo’s result is special because they have such a large herd. Most near the top are much closer to the average size of 250 cows,” she says. Axford says that to achieve the number ranking proved the Dicksons are “very careful breeders”. “They use genomic technology well and are careful in their bull choices, and how they mate and how they decide which cows should be bred and which ones culled.” The Dicksons have been moving up the rankings for several years and were number two for the Holstein breed in April this year. The herd has an APR of 113 and an ASI of 92, the second best in Australia. It has a protein ABV 16kg above aver-

age, the best in Australia, 470 L milk, and 14kg fat. Dickson says the use of genomics had helped in the herd development. “More than 30% are genomically tested, with more testing being undertaken each year,” he says. “A key part of our success is that we herd test and we don’t milk lower performing cows,” he said. “We cull the low performers even if they look good. It’s hard but that’s how we got to this level.” Genomic bulls dominate the top bulls in the latest list of ABVs. Axford says half the Holstein bulls in the latest Good Bulls Guide were young genomic bulls. “Genomic – or DNA – testing is having a major impact on dairy artificial breeding in the two years since the technology was introduced in Australia,” she said. The Dickson farm is maintaining good production with almost 9000L/ cow and 630-640kgMS. Dickson says he had aimed for a top 10 ranking but once he achieved that he set his sights on the top. “Once we got in the top few I started thinking about reaching number one. It’s nice to get there.” Emu Banks sells 50-60 bulls each year to Genetics Australia and other AI, companies, by exporting to China and to the local market. 90% of the bulls sold have been genomically tested.

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Rurtec says when cow hair is all falling out as it does in the spring, the sure way is to get adhesive all the way to the skin. It says the new Heatmark Ero is the best in heat detection, well bonded for under a dollar a cow. Rurtec has marketed heat detectors for 12 years. Now the company believes it has a breakthrough product with convenient application and much lower purchase price. Available in limited quantities

for the coming season, new Heatmark Ero is set to revolutionise heat detection, it says. “The “quick cure” Ero aerosol adhesive offers the convenience of press button administration. And it allows bonding to the skin without the messiness of having to spread the glue yourself, as is the case with Kamar detectors. “Incorporating scratch indicator technology, Heatmark detectors

give better differentiation between activation from a true standing heat and from other rubbing. Dye bubble type detectors may be fully activated by other pressure such as from low branches or head resting by herdmates. Heatmark detectors however, require significant rubbing from a true standing heat to fully rub all the silver coating off the detector.” Tel.0800 RURTEC

Dairy News september 10, 2013

48 //  animal health

Watch where cows must walk ANNA IRWIN

LAME COWS in spring Money spent on track and lane upgrades can be wasted if key principles are not met.

can be frustrating, costly and harm staff morale. A lot of effort goes into

transitioning the calving cow, avoiding metabolic disease and keeping mastitis low. So how can farmers prevent lameness? Money spent on track and lane upgrades can be

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wasted if key principles are not met. A track or lane should: ■■ have a camber of 3-5% ■■ be an appropriate width for the herd, especially near the dairy shed ■■ have a gradient not more than 10%. Consider constructing steps if you have a steep section close to the shed or at an underpass ■■ have a well-formed and compacted base, with suitable top-surface i.e lime rock. If sections of the track become boggy during wet periods these can be addressed with shingle. Another potential problem zone is the transition between the track and concrete race or yard. Ensuring good drainage, compaction of material and an appropriate nib wall can help. Sometimes the only permanent solution is to concrete this area and ensure the transition is on a flat, straight section, away from the shed. Taking the time to address issues in the yard area can help to prevent lameness and improve cow flow. ■■ Is the yard big enough? Larger cows need 1.5m2 and smaller cows 1.3m2. ■■ Are there stones on the yard or feed-pad? Use nib walls and transition surfaces such as lime to prevent the migration of stones onto concrete.

Eliminate slippery surfaces by grooving or scabbling concrete and using rubber mats at entry/exit areas. In wet conditions, the usually soft, fine surface layer of tracks will offer less protection to cows’ hooves. This, combined with the increased moisture in cows’ feet, means the chance of sharp stones from base material causing bruising will be greater. Later in the season, the soles of cows’ hooves become thinner and are even more susceptible to physical damage. Good stockmanship from early in the season will combat these issues and prevent lameness. This should include: ■■ a ‘no-heads up’ policy. Seeing cows with their heads up on the track or yard is a sign of too much pressure ■■ allowing cows to walk at their own pace ■■ using backing gates correctly – to take up space, not push cows ■■ using the top gate the same way every time to ‘sweep forward’ batches of cows ■■ ensuring everyone in the team treats the cows with the same care everyday. Tel. 0800 4 324 7969 www.dairynz.co.nz/ healthyhoof • Anna Irwin is DairyNZ animal husbandry extension specialist. ■■

Don’t let BVD undermine your profitability this season The cost of BVD on your farm can be substantial and on-going. The key to controlling it is protecting the unborn foetus to prevent Persistently Infected (PI) calves from being born. Bovilis BVD is the only BVD vaccine that helps achieve this by providing foetal protection. You should also keep infected animals or those of unknown BVD status from coming into contact with your herd. Your vet has all the information, talk to them today about a BVD management plan for your farm.

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Dairy News september 10, 2013

animal health  // 49

Research shows: hit lepto before it’s too late FARMERS ARE urged to vaccinate their young stock earlier against Leptospirosis to better protect themselves, their staff and their animals from the disease. Animal health company Zoetis is also working with Leptosure to promote the need for earlier vaccination this spring, and a road show is aimed at veterinarians, to lift vaccination programme awareness. Leptospirosis is often mistaken by farmers for a bad bout of flu, but it can be almost entirely avoided if effective vaccination of livestock takes place. Dr Roger Marchant, veterinary advisor to the New Zealand Veterinary Association’s (NZVA) Leptosure programme, is urging farmers to head off the risk of leptospirosis infection – for themselves, their family, their staff and their animals – by vaccinating animals at the right age. “The typical pattern for leptospirosis vaccination has not changed much over the years. That’s been to vaccinate calves at about six months of age. However we can now be more specific about the timing and vaccination needs to be earlier than this to be fully effective.” Farmers and veterinarians are in the front line for infection risk with about 120 reported human cases in New Zealand each year. However, as reported at the recent NZVA conference, estimates of under-reporting may mean the number of cases could be up to 40 times greater. This rate puts New Zealand in the top bracket globally for serious human leptospirosis infections. It is also a disease with insidious downstream affects through the rural community beyond the farm gate. Back in 2008 a meat worker died from the disease, and process workers have a 1:20 chance of contracting the disease through infected carcasses. The estimated annual incidence in veter-

“An animal may well be infected with leptospirosis prior to that, and even if it does get vaccinated, that will not eliminate the infection.” inarians is 3%. The Leptosure programme has previously recommended the practice of vaccinating at three to six months. However a revamp of the Leptosure guidelines is underway, with new ‘best practice’ vaccination standards coming out later this year. A key aim is to get vaccinations completed earlier before calves become infected, but not too early since maternal antibodies may interfere with the vaccine. Concern over the mixed messages behind vaccinations prompted the NZVA to initiate a review by Massey University Epicentre on leptospirosis disease incidence. This work reported on the possibility of increased risk of leptospirosis infections in herds where calves had not been vaccinated until six months of age. A small pilot study by Massey showed 30% of apparently vaccinated herds sampled tested positive for leptospirosis, and 13% of cows in these herds could have been shedding the bacteria. The risk of having a herd with one or more cows shedding leptospirosis bacteria appeared to be associated with the age at which calves were vac-

Roger Marchant

cinated for the first time. Marchant said the ‘window of infection risk’ was there when vaccinations were not done until six months of age. “An animal may well be infected with leptospirosis prior to that, and even if it does get vaccinated, that will not eliminate the infection.” From the Massey review the Leptosure ‘best practice’ advice now is earlier vaccination than previously recommended, but not too early: for the average mob age of dairy calves the first vaccination needs to be about seven weeks of age on a farm with a high leptospirosis risk. For a typical dairy farm that equates to 10 weeks after the seasonal start of calving as the earliest time, with a second shot administered four-six weeks after the first. Even on low risk properties, farmers should aim to complete these two shots before 6 months of age.

What makes farm high-risk? A HIGH-RISK farm is one that experiences high rainfall in spring and summer, flooding and water-logged paddocks, maybe has a history of leptospirosis infection, has a rodent population, and livestock that may have contact with unvaccinated animals, especially when grazing off-farm, or with bought in seasonal grazing stock. For beef farmers the principles remained the same, vaccinating calves before the risk of exposure to infection develops.

Ideally dairy grazers coming onto a beef property should have full proof of vaccination prior to arrival, and all beef stock on the property should be vaccinated. Zoetis market development manager and veterinarian Dr Wayne Clough says research has shown leptospirosis vaccines were effective in preventing leptospire shedding when administered prior to infection. “But these are bugs that do not play by the book, and the longer an animal has not been

vaccinated, the more likely it will become infected and shed leptospirosis bacteria. “Then vaccination is simply too late.” Zoetis has recently completed trials that confirm the efficacy of Ultravac 7 in 1 when administered to calves at six weeks of age. “This is to dliver better protection to your stock, yourself and your staff; it’s a nasty disease we have effective vaccines for; it just needs to be headed off earlier,” Clough says.

Dairy News september 10, 2013

50 //  effluent & water management

Use accredited system designers FARMERS SHOULD choose range of choice of accredited designers accredited builders of dairy effluent so there is no excuse to end up with a and irrigation systems to ensure quality system that’s not right for your farm. plant that complies with regulatory The consequences of poor design are far reaching particularly in terms of requirements, says IrrigationNZ. “We’re still seeing too many systems compliance and regulatory penalties,” not up to scratch,” says chief executive says Curtis. Launched not long ago was the Andrew Curtis. “The nutrient loading aspects of designs are improving, Irrigation Design Accreditation but pump selection is still often poor, either resulting in insufficient pressure to “We realise accreditation run the effluent applicator is quite a hurdle and each or excessive energy application requires a lot of consumption. work. But it’s one of those “Hydraulic design is also still deficient; proper designs things where critical mass require head loss to be is now building. Being understood – a combination accredited will become the of friction loss in the pipe and norm soon.” elevation. Companies aren’t always getting it right and it’s costing farmers Programme, which integrates with the money and time to resolve, while also Farm Dairy Effluent System Design exposing farmers to compliance risk.” Accreditation Programme. Two For two years, 13 dairy effluent applications, both high standard, have design companies have been through been submitted and a decision on these accreditation, and two more promising is likely during September. “We’re really happy with progress,” applications are in process. “Dairy farmers now have a wide says Curtis. “We’ve also been promised

standards does the same for effluent. While both are only voluntary at the moment, Curtis says they have already helped lift the performance bar, standardise designs and improve production and environmental outcomes. “The codes of practice work hand in hand with accreditation. Both give farmers certainty they will have a system enabling them to correctly manage irrigation and effluent. Andrew Curtis

applications from all the major irrigation design companies prior to Christmas.” “We realise accreditation is quite a hurdle and each application requires a lot of work. But it’s one of those things where critical mass is now building. Being accredited will become the norm soon.” The updated design code of practice and standards for irrigation forms the basis of the irrigation accreditation programme, whilst the recently reviewed dairy effluent code and

“Combined with the industry code of practice, standards and training, an accreditation programme is the best way of improving skill levels and ensuring consistency. ‘Managing within Limits’ means [a lot of speanding] will be needed for on-farm irrigation and effluent infrastructure in the next five to ten years. Without a quality assurance system we may not meet the performance standards required,” Curtis says.

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Dairy News september 10, 2013

effluent & water management  // 51

Take your Effluent Pond from this …

Solids separator light on storage, fresh water usage GEA FARM Technologies (GEA) supplies the range of Houle equipment, including solids separators, pond pumps and agitation systems. Solids separation technology, especially, meets the need for managing the effluent that results from intensification. The extra challenge is to deal with greater volumes of solids coming from feeding areas. Solids in a pond (or tank) may be difficult and costly to manage and, over time, may accumulate to a point where a pond’s storage capacity is limited. This raises the case for separating solids from an effluent stream before they enter a storage pond – an obvious application for the Houle slope screen separator. The screen is passive and particularly effective in combination with GEA’s sand sedimentation pit, where it results in virtually all solids being removed from the effluent stream. The slope screen comes in two sizes depending on effluent volumes and processing requirements. The larger 2.4m model can process

up to 140m3 per hour, meaning greater processing efficiencies for the larger farms. The processing rates depend on effluent consistency. Yards, feed pads or barns that are flood washed result in effluent typically thinner; this processes faster over the separator. For heavier applications where the effluent is in more of a slurry form, the XPress (roller press) separator is recommended. The Xpress, claimed to be unique in New Zealand, is efficient and has low maintenance technology that can produce solids up to 28% dry matter. Another key benefit of solids separation is the ability to reuse the liquid (green water) for washdown, helping conserve fresh water. GEA’s Houle flush system is designed to clean a washdown area by maximising the flush volume over a defined area to effectively clean this every time. This involves a 300mm valve installed at concrete level which is air operated to start and stop the flush

to this …

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This pond took only eight weeks to go from crusty and stagnant to aerobic and biologically active. The EPS Stirrers come in a number of different Hp sizes and all of them are very low kW/Hr, starting at .75kW.

Houle slope screen separator.

cycle. The valves operate at 7000L/min, a sufficient flush for proper cleaning. The air operation allows a system to be automated, making it a one push button operation, or allowing the flush cycle to be pre-programmed to

suit a specific wash area. Two flush cycles are typical with automatic start up and shut off. The first step involves a prewet cycle where the valves will all open briefly to wet the area, which minimises manure sticking to con-

crete, especially during hot weather. The next step is the main flush cycle; this cleans the area by alternating flow through the valves and maximising the volume available for each. Tel. 0800 432 327

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Dairy News september 10, 2013

52 //  effluent & water management

Fence post moves with the flow WHEN TOM Pow from

HerdHomes caught up with Kerry Powell from Taragate at Central District Field Days, he was on a mission to deal with the problem of floods washing away his fencing. As a long time ‘greenie’, Tom was keen to protect the waterways from

The Flo-Post is designed to bend over during flooding and not wash out into the waterways.

livestock but was aware that what farmers were being asked to do made no sense as when floodwaters arrive they wash down big drifts of debris that either break or wash out steel posts along with the high tensile wire, taking them into the waterways where they form large

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unmanageable balls of debris. These become both an environmental hazard and endanger kayakers, swimmers or other river users. Ignored, they can end up on beaches. Pow and Powell decided a system was required with posts that could move like reeds in the water so debris could not attach; where the wire used would not allow debris to accumulate to a dangerous size; and where if the wire was to break free, it would be easy to deal with and not cause a long term environmental risk. Further to this, the fence had to be cost effective and quick and economical to maintain or reinstate. Taragate developed the system and materials and HerdHomes did the trials. The new system is robust, withstanding river damage and livestock wear and tear, and it meets all Pow’s environmental and practical concerns. It comprises of two new posts: a new polywire and a special ‘tie’. The backbone of the Flood Fence is a flexible Flo-Post designed to bend over during flooding and not wash out into the waterways.

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When clear of debris, the Flo-Post will spring back to its original position. A more rigid, but still flexible plastic post is used where anchor points are needed. A conductive polywire is attached to these posts by a UV resistant cable tie with a measured breaking strain. While these will hold firm during flooding, they will snap if a large object snags the polywire. This prevents any major damage to the rest of the fence and eases the task of making repairs. The system is also very quick to install, no tractor or special equipment is needed to drive posts, just a hand held post driver, making it easy and extremely cost effective to erect fences in difficult areas The system also uses a specially developed highly conductive but biodegradable polywire with a planned limited lifespan. It comes with coloured tracer strands which fade during its lifetime to indicate when the polywire should be replaced. Tel. 07 843 3859 www.taragate.co.nz

Dairy News september 10, 2013

effluent & water management  // 53

Oz water tour reinforces need for certainty WATER WILL, over time, contribute to New Zealand’s farming and growing industries raising export earnings from $30 billion a year $60 billion. But this reliance on water also creates tension, says IrrigationNZ. “To develop agriculture and horticulture and truly realise their potential, we need a more certain investment environment. Farmers, their related industries and the bankers that support them, need clarity on our national and regional management of water.” About 30 irrigation representatives on an IrrigationNZ tour of Australia in July heard this message. Helped by sponsors GHD Ltd and BNZ, the irrigators journeyed along the Murray River to understand the Australian irrigation scheme modernisation process. “We wanted to observe how the Australians were tracking, as far as irrigation infrastructure is concerned. The most telling observation was on the need for certainty. For the agriculture industry to prosper, we need reliability and confidence in our regulatory environment.” IrrigationNZ says with new schemes like Central Plains Water, Ruataniwha

and Hurunui Water Project’s Waitohi irrigation and hydro scheme underway, the irrigation industry requires long term and strategic policy decisions to support these long term investment decisions. The intergenerational nature of irrigation schemes must be recognised and provided for.

“Take the Murray Darling Basin, where water availability is highly variable. Water entitlements have been unbundled into permanent rights for water access and delivery. The delivery right allows water to be supplied to a property and is site specific. The access right is the amount that

“We wanted to observe how the Australians were tracking, as far as irrigation infrastructure is concerned. The most telling observation was on the need for certainty.” “The Australian water market model is frequently held up as the future of water management. However, when you look closely, the success of Australia’s water market has only been made possible by the introduction of water permits in perpetuity, the subsequent restructuring of these and storage. “In Australia, water permits come with different security levels (high, general and low) and have been unbundled – which means the site-specific take component is separated from the use volume. This allows greater flexibility in permit changes and transfers.

can be used. However this changes on an annual basis according to the water available.” IrrigationNZ says there are also different levels of security for access rights. For example in NSW, high, general and supplemen-

tary levels exist. These effectively give a priority of access to water. This gives farmers flexibility. For example, Coleambally is a low cost irrigation scheme relying on open canals and gravity fed irrigation. As a result most of their farmers are annual cropping enterprises and this have a higher proportion of general security rights in their portfolio. In wet years this allows maximum irrigation but in dry times more money may be made from selling what water they have to higher value land use activities such as permanent horticulture. If New Zealand is serious about creating an enabling environment for water management, then permits in perpetuity and unbundling must be on the table, it says.

The main irrigation channel in Colleambally, Australia, under repair. A more certain investment environment has aided irrigation development there.

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Dairy News september 10, 2013

54 //  effluent & water management

Fencing floats clear of floodwaters A NEW flood fence from McInnes

Manufacturing Ltd helps to effectively fence waterways or land at risk of flooding, the maker says. The fencing allows fence wires to rise and float well above flood waters, preventing the wires catching debris and sustaining damage. Clear of the water, electric fences will not short out, so fences in non-flooded areas of the farm will maintain full current. The flood fence comprises a 1.1m plastic sleeve which slips over the post. The sleeve has an adjustable stop to prevent it from coming off the post. The sleeve fits a post up to 125mm diameter – a number 2 or a small number 1 post. (Sleeves for half round posts and steel standards will be available later in the year.) At the base of the sleeve an elliptical 20L float gives the required floatation to keep the wires above flood level, but offers minimal resistance to the current, the maker says. The float has a fin which rotates with the flow of water to keep the wires taunt and pre-

Cavity pumps offer ‘huge’ efficiencies vent sagging into the waters. Attaching the wires to the sleeve is simple, and as the entire flood fence is made of polyethylene it provides excellent insulation, no insulators required. The product suits fences with 1 wire or up to 7 wires. For best results use a low resistance polywire. In many situations there are dips in the terrain. Typically there will be a post at the bottom of the dip and one

on either side. The post at the bottom of a dip will be floating first, so use a bungee or a spring to keep the wires tight as the bottom flood fence rises. There is also a bung in the float so that where necessary water can be added to give extra weight to keep the bungee tight as the flood recedes and posts in dips drop back to their normal level. Tel. 0800 104 119

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CORRECT CHOICE of an effluent

pump demands scrutiny of a machine’s reliability, repeatability, efficiency, ease of maintenance and cost of ownership, suggests pump maker Pump and Valve Specialities. The company has developed Sabre progressive cavity pumps to suit dairying applications. “Our standard range of pumps are available for flow rates from 10m3 to 37m3/hr. And they offer huge energy efficiencies over centrifugal pumps,” the company says. Sabre cavity pumps are said to give a fixed flow rate regardless of pressure. And irrespective of whether a farm’s irrigator is next to the pond or 400m away, the application rate will continue to be accurate. This eliminates the need to throttle the pump back when spreading close in, or the need to have an oversized pump to cater for long mainline runs. Being of fixed displacement also makes them an ideal choice for injecting green water into a centre pivot. Pump and Valve Specialities says its

pumps’ protection ensures years of reliable operation. “Our dry run protection (DRP) module monitors the pump housing temperature, and any aincrease in temperature caused by dry running will trigger a cutout before damage occurs. “Also, Sabre pressure protection offers a safeguard to prevent the main line against over-pressurisation during an irrigator blockage or valve closure. Low pressure protection eliminates the risk of flooded paddocks in the event of hydrants being left open or reticulation failing.” Sabre pumps have universal joints encased in grease filled boots, much like the CV joints on a car. These carry a twoyear warranty. Purchase options range from a basic package (pump, drive and protection module) to turn-key packages including control panels. Pump and Valve Specialties have four offices nationwide, supporting a dealer network experienced in the supply and installation of Sabre effluent pumps.

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Dairy News september 10, 2013

effluent & water management  // 55

Effluent value, fert price rises keeping pace – council DAIRY FARM effluent is growing in value as its nutrient value keeps pace with rising fertiliser prices, says Waikato Regional Council. Treat effluent as a fertiliser, the council is urging farmers, but manage it carefully because it is not a balanced fertiliser, being high in potassium. This can lead to higher leaching levels of magnesium and animal health problems if potassium soil

test levels are high, it says. “You can manage this risk by increasing the effluent area or by making silage on the effluent area and feeding it out on non-effluent areas of the farm. Applying shed effluent at light rates will ensure stock feed intakes are not adversely affected. “Managing dairy effluent is also necessary for the health of waterways and groundwater,

“Managing dairy effluent is also necessary for the health of waterways and groundwater.” so knowing the regional council’s rules for effluent management is important.” Under the Waikato regional plan a farmer may not exceed 25mm per application and 150kg of N from effluent/ha/year. So a farmer must know how much an irrigator is applying and how

Test your effluent for nitrogen, phosphorus, potassium and sulphur.

■■

Check irrigated performance by measuring the application depth.

■■

Adjust irrigator speed to ensure good pasture uptake of applied effluent nitrogen.

■■

Run irrigators as fast as possible so that effluent application is light.

and runoff is high. This substantially reduces the risk of overflows to surface water. Increasing effluent irrigation area means a farm can: ■■ Better manage applications to ensure the

■■

■■

■■

nitrogen loading rate is not exceeded Achieve better nutrient uptake Spread nutrients further, reducing fertiliser requirements and associated costs Slow the build up of

■■

potassium in effluent paddocks, reducing risk of animal health problems in early spring Have more flexibility in grazing around effluent applications and safer withholding periods prior to grazing.

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Soil test the effluent area separately from I like the Nevada PondBoom because it’s safer and easier the rest of the farm. ■■

to manage the pump than having it on a floating pontoon. ■■ Regularly maintain the irrigator, pump and pipes.

■■

Expand effluent area if possible.

■■

Have holding facilities for effluent so that it can be applied to land at optimal times.

■■

Divert rainwater from the farm dairy before it reaches the effluent system.

■■

Reduce effluent volume with efficient wash down.

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Dairy News september 10, 2013

56 //  effluent & water management

Hitting the target IT’S ALL very well insist-

ing an irrigator spreads effluent uniformly over the farm when the mixture you send to it varies wildly in its consistency. If your aim is to grow grass and use the nutrient resource effectively, then overall uniformity of application is your target. Some of you will be discovering that unmixed or poorly mixed effluent ponds simply guarantee a gradient of effluent nutrient across the farm depending on whether you were pumping a strong brew or a weak brew at the time. It is a pity the industry didn’t recognise this earlier when we were preparing the FDE Code of Practice. However, that shouldn’t stop you from

At last:

should be appropriate to the soil type, the crop, the soil moisture deficit and the strength of the effluent. You should choose mixers that homogeneously mix your effluent storage, pumps that deliver the same flow to each hydrant (so that irrigator performance is the same at each hydrant), hydrants that keep effluent in the pipes when they are disconnected, irrigators that spread effluent uniformly and monitoring equipment that watches over the whole operation, and which keeps you advised of what is or what isn’t going on. The planned warrant of fitness should take all these factors into account. What about sand traps? Put a lot of thought into a good, easy-to-use and effective agitated sand

fulness. The important issue is not whether your designer has achieved pass marks in a course of study, but whether the effluent system you installed meets the required standards. It is the effluent system that actually needs to be reviewed, examined and accredited. This is where a planned ‘warrant of fitness’ will be more important than whether you’ve used an accredited designer. It will give you useful yardsticks by which to measure your design success. The ultimate test of your system is that it lets you keep all the effluent on your farm and then uses it to grow grass. You should be able to apply effluent to soils that can absorb it when they are able to absorb it. The amount applied

trying to achieve thorough mixing and good spreading uniformity when you plan a system. When the pond is full, aim to mix it well during pump-out, and when the pond is empty make sure that all the solids have gone to grass. You don’t want islands of solids left to hijack pond volume or to leave you with another solids recovery or spreading task. Factor these points into your list of requirements when you are choosing a design. There is a tussle going on behind the scenes regarding the accreditation of designers. You can see from the relatively small number of accredited companies that uptake is slowish. Some of this is expense; some of it is to do with doubts about its ultimate use-

STUART REID

removal system. Sand and grit is a small component of effluent but causes nearly all the wear and subsequent maintenance. Your grit removal device should leave you with almost clean grit and sand which can be spread back on to race potholes On top of these matters, you should strive for equipment that has a guarantee of success with low

labour input and a low capital cost. (But here you should carefully balance your labour, risk and maintenance costs against capital. Low cost often means high labour and higher risk, with many regular, irritating, time consuming tasks.) There are many good individual components you can use to achieve your aims but they don’t

all interact together to produce an integrated system that reduces risk, which uses the resource effectively and which monitor the situation while growing grass. Examples of a fully integrated installation can be found at www.spitfire. net.nz • Stuart Reid is managing director of Spitfire Revolution.

A Traveling Effluent Irrigator …

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The ultimate test of your effluent system is that it lets you keep all the effluent on your farm and then uses it to grow grass.

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Dairy News september 10, 2013

effluent & water management  // 57

Embedded pods irrigate tricky paddocks then are run automatically from the house or wherever the computer controller is located, meaning AN EMBEDDED irrino additional labour is gation system launched required to shift or turn at Fieldays this year by them on and off.” RX Plastics fits a specific Each of the G-Set pods gap in the market for such is set in the ground and equipment, says the comprotects a sprinkler and a pany. control unit, which may The G-Set irrigation system, prompted by feed- be battery, solar powered or mains supplied. back from dairy farmers, offers a “functional system The pods are made of the same rotomoulded more chal- because I likethat the irrigates Nevada PondBoom it’srobust safer and easier to manage pump than it on a floating pontoon. as K-Line, but are lengingthe areas,” says RXhaving plastic coloured blue – easily seen sales and marketing manin a paddock. ager Phil Gatehouse. “Farmer enquiries The system can be have been about difficult installed anywhere delivareas, and they have comery pipe can be run, mented on the low labour making it suitable for input needed as once the more difficult terrain, G-Set is installed they hill slopes and irregular are remotely controlled.” shaped pastures. These controls cause the “G-Set is ideal for irrigating pivot corners,” says system to work as proGatehouse. “The pods and grammed, minimising the human error factor. pipe can be installed and tony hopkinson

Each sprinkler operates sequentially so in 24 hours the complete area is covered and there is no need for a large delivery line. Hedges or fences do not need to be removed, and the system works on rolling ground in areas not suitable for boom travel. “This is a significant innovation for New Zealand farms, given the reliance till now on large and

expensive installations of centre pivots or travelling irrigator systems,” Gatehouse says. RX Plastics is gearing up as the irrigating season gets closer. www.rxplastics.co.nz Tel. 03 307 9081

RX Plastics marketing manager Phil Gatehouse with the G-set irrigation system.

The king of pond stirrers Only from your Nevada NZ distributor. Think your crusted dairy effluent pond is unmixable? Think again. The TurboStir 7000 with Typhoon propeller technology will demolish crust and quickly get the whole pond swirling.

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Dairy News september 10, 2013

58 //  effluent & water management

New stirrer to get monster crust test GARETH GILLATT

NEVADA’S well proven effluent

Travelling irrigator ‘changes the game’ THE

‘COBRA’ travelling irrigator, new from Hi-Tech Enviro Solutions, Morrinsville, stems from “customers’ requests for a raingun that could move itself,” says general manager, Brian Nicholson. It’s a game-changer, he says. “After a lot of R&D including sourcing parts from overseas, and

then extensive trialling and getting feedback and suggestions from farmers, we knew the Cobra was special.” The design is a world first, the company says, and enables farmers to put on dairy effluent at extremely low depths and rates. And it incurs none of the

problems inherent in long boom arms on normal travelling irrigators. It has a wide range of travel speeds, can do full or part circles, and can vary its performance to suit different parts of the farm. Tel. 07 889 7755 www.hitechenviro.co.nz

stirrer will be put through its paces this month in a study involving very large and heavily crusted ponds, says Midwest Machinery. The company says it has identified “some of the country’s most crusted up effluent ponds” to test its new TurboStir 7000 PTO pond stirrer. It says there will be some big challenges for the machine. The pond dimensions range up to 60 metres square some with crust. No sweat, it says. The 7.4 metre stirrer will do it thanks to the high performance Typhoon propeller design. “It has the most efficient power-to-output ratio of any unit on the market.” “This stirrer is an ultimate contractors machine and suits tractors from 70hp and upwards.” One of the

ponds likely to be used is about 2500m2 on a dairy farm with approximately 500 cows. The pond hasn’t been pumped or stirred for quite some time. “This farm has a high input feed system so there’s a lot of dry matter entering the pond – thousands of dollars’ worth of nutrients….. “But by efficiently agitating the pond, the farmer can utilize this valuable organic fertiliser by spreading it evenly over the pasture in addition to tidying up the pond. “When you’re only pumping and not stirring, you won’t get a consistent and even spread of nutrients on to the irrigated area.” The company will consider even more serious challenges. “If you think you’ve got a pond with a thicker crust we’d love to hear from you.” A report on the experiments will be available in late October. Telephone. 0800 464 393 www.nevadanz.co.nz

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Dairy News september 10, 2013

effluent & water management  // 59

Irrigating effluent TREVOR FOLEY

TRAVELLING IRRIGATOR application depth

varies according to the speed they travel (faster speed = lower depth applied). Good practice is to run the irrigator on its fastest setting and to ensure the drag hose is laid out correctly for optimal travelling irrigator performance. Travelling irrigators are not recommended for use on slopes greater than 7˚, as these soils are categorised as high risk. Low application systems such as sprinklers are preferred

to cover these areas. The drag hose can be very heavy, especially if it is too long; this can cause excessive wear on the gearing and the winch wire and over-application of effluent. Keeping the hose loop tight behind the irrigator will reduce drag. See the sidebar for additional tips. Tips for operating low application sprinkler systems Low rate systems such as sprinklers and pods suit a wide range of situations, and are particularly useful for irrigating on high-risk soils because low rates of effluent can be applied

more often. Sprinkler systems usually have fixed application rates. The application depth is controlled by the length of time the effluent is applied. Sprinkler systems with a timing control can be pulsed, e.g. 15 minutes on and 45 minutes off, giving control over the total depth applied and the hourly rate. Spacing and pressure must be correct with these systems. Any reduction in pressure at the irrigator can result in effluent being applied at higher application depths and rates. This can result from: Low pump capacity or

poor pump performance • Trevor Foley is Dairynz environmental extension specialist. This article first appeared in Getting the Basics Right 2013 issue. @dairy_news facebook.com/dairynews

Travelling irrigators are not recommended for use on slopes greater than 70.

quick tips for applicators ■■

■■

■■

Ensure the pressure is correct and consistent at the irrigator to achieve correct application depth and rate along the whole run and at all points of the farm. Don’t cut any nozzles. Replace them when they are damaged and use Camlock fittings for easy removal. It is good practice to change the nozzles on the travelling irrigator when you change the rubber ware in your farm dairy. If you are getting blocked nozzles, the issue starts at the inlet. Good practice is to ensure no rubbish enters the system. Screening through a well-designed sand trap is a good measure. Clean the sand trap regularly.

■■

Maintain and service the irrigator regularly including greasing weekly, covering all nipples on the applicator. Hose the traveller regularly with clean water.

■■

Anchor the irrigator correctly e.g. to a strainer post and away from waterways. Set the irrigator at the fastest

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Devise an irrigation and maintenance plan.

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Correctly inflate wheels to reduce drag on the irrigator.

■■

Visual checking of systems is important: check for leaks or damage by walking along the lines. Repair damage immediately.

■■

Feed the winch rope (dragline) onto the winch drum from the sides, not the centre. A wire winder fitted to the irrigator is a good optional extra.

Drag hose and layout Lay out correctly: check that the gap between the dragline and drag hose is less than 3m.

■■

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■■

speed to reduce application depth and rate.

■■

Ensure the drag hose isn’t too long because greater length creates weight and therefore greater drag, reducing pressure at the irrigator. 150-200m long is good.

■■

Avoid snags and don’t allow the drag hose to rub against sharp objects.

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Dairy News september 10, 2013

60 //  effluent & water management

Practical tips to make irrigators work TREVOR FOLEY

ANALYSIS OF signifi-

cant effluent non-compliance information from regional councils has highlighted the importance of correct effluent irrigation. All people in the farm team are responsible for ensuring the effluent system is operated successfully including the owner, sharemilker, manager and staff. A detailed analysis of the reasons for significant non-compliance by Nicola Waugh, from AgFirst Waikato, identified ponding as a major issue. This study, funded by DairyNZ, collated the compliance data from regional coun-

cils nationwide. Ponding, and the causes of ponding, such as lack of sufficient storage or over-application of effluent, accounted for at least half of significant non-compliance across many regions. The report highlights the importance of carefully managing the process of applying effluent to land. Is the irrigator well maintained? Does everyone in the farm team know when to irrigate and where? Applying effluent Application depth is the amount of effluent applied at one time. This is the same as measuring the amount of rain e.g. 20mm. Applying to the appropri-

ate application depth depends on a range of factors including nutrient content of effluent, regulatory conditions and soil and landscape features. It is good practice to apply lower depths more often, for example 10mm in one application. It may help if you think about application rate as like a summer shower or as a thunderstorm. If 20mm is applied in 20 minutes it’s more likely to be a thunderstorm compared to a

A typical spray pattern from a travelling irrigator

Trevor Foley

20mm application over four hours. Adjust your application rate for site-specific conditions to lower the risk of ponding and runoff.

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For example, a lower rate would be more appropriate on slopes and ‘tight’ soils, and rates should reduce when soils are wet. Above is the typical spray pattern from a travelling irrigator The irrigator in this graph has applied effluent over a run, with buckets below it, to capture efflu-

ent application depths on two irrigator settings, a slow speed (in red) and a fast speed (in blue). The increased speed (and pressure) of the fast run has had an influence on the application distribution uniformity – meaning the distribution was more even across the buckets.

Distribution uniformity is very important. An application depth of 40mm on the outside of the wetted width will cause ponding and waste valuable nutrients. • Trevor Foley is Dairynz environmental extension specialist. This article first appeared in Getting the Basics Right 2013 issue.

GET SOCIAL WITH DAIRYNEWS Keep up with the latest stories from by following us at facebook.com/dairynews

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r Self cleaning ponds r Effluent is clean enough to be pumped into a pivot system if required r Screens out everything bigger than 1 mm

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Dairy News september 10, 2013

effluent & water management  // 61

Farmers in Horizons Regional Council zone face effluent irrigator inspections this season.

Council signals irrigator checks HORIZONS REGIONAL Coun-

cil staff will inspect effluent irrigators this spring, a move supported by Federated Farmers. Regulatory manager Richard Munneke says the council aims to help farmers achieve an even application of effluent to land, and to point out the productivity gains that result from correct spreading. “The team aims to encourage and promote best industry practice. Duriing trials last year we noticed that irrigators were not always spreading the effluent as well as they could be. “Often with relatively minor and inexpensive adjustments this can be rectified to enable better nutrient utilisation.” Munneke says at times during the trials an irrigator would exceed the 40mm threshold, which is three times the consented limit. “Where we find gross over-applications like this it will be recorded as non-compliant. “But even then the farmer can work with the dairy team to remedy the problem and get their irrigator

working as efficiently as possible without a large cost. “There should be few gross overapplications beyond this threshold; 12 to 14mm has been identified as industry best practice.” Manawatu-Rangitikei Federated Farmers president Andrew Hoggard says irrigator efficiency is the key to further improving water quality in the region. “I support Horizons in its move to look into irrigator efficiency. Since moving from the old two pond system to spreading to land over a decade ago, we’ve seen an improvement in water quality across the region, and we will see an equally good improvement by a gradual change to newer modern spreaders capable of achieving lower application depths.” Hoggard says on his own farm he noticed improvements when he replaced an old spreader five years ago with a new spreader capable of achieving 8mm application depths. “I’m using nutrients much more efficiently, with a cost saving, by not needing to import nitrogen onto the

effluent area, and the paddocks are ready for grazing much sooner. Our spreader has paid for itself many times over. “Farmers wondering whether their spreader is up to the standards should take up the services offered by DairyNZ, Fonterra or Horizons, to check your system before inspection day. “ Though the council will not issue a significant non-compliance notice for a spreader that doesn’t make the grade, it will nevertheless issue a noncompliance and associated costs, Hoggard says. “But if you put your hand up first you’ll get a helping hand and suggestions as to how to improve. If your spreader’s marginal, swap to a newer generation effluent spreader; you won’t be disappointed. I say this from practical experience.” Munneke says because farmers last season achieved a 93% compliance rate, the council will move further into an advisory role, rather than simply a monitoring role. Tel. 0508 800 800

How good is your effluent system? Phone us on 0508 476 278 to register for your free site visit and evaluation.

For more information phone 0508 476 278 or visit www.smartfarmsystems.co.nz

Dairy News september 10, 2013

62 //  machinery & products

No netwrap in new film-onfilm wrapper BALER AND wrapper specialist

McHale says its new Fusion 3 Plus balerwrapper with ‘film-on-film’ technology makes better silage than conventional balers and saves time and money. The brand is distributed in New Zealand by Power Farming. The company’s sales and marketing manager, Paul McHale, contrasts the new machine with conventional balerwrapper technology, in which the bale is first secured with net or string then transferred to a wrapping table for sealing with plastic for fermentation. The McHale system eliminates the use of netwrap, instead applying plastic directly to the bale in the bale chamber. New Zealand was a critical testing ground for the new concept baler, Paul McHale says. The company’s manag-

ing director, Padraic McHale, and engineers, spent 12 weeks on farm in New Zealand trialling and refining the preproduction versions of the new concept machine. Several Kiwi contractors ran prototype machines last season. “These machines worked well and have since been put into production,” McHale says. “Now 20% of the new Fusion 3 machines working in Europe this season are being supplied with filmon-film instead of net wrap. “We have been working on our filmon-film system for four years and once farmers have experienced the increased quality that our system delivers, they do not want to return to more traditional methods.” Power Farming machinery division general manager Graeme Leigh says

when a traditional baler applies net or twine, the bale expands by a couple of inches before the plastic is applied. “When the plastic wrap is applied in the bale chamber, it does not stretch so the bale does not expand. The bottom line is that more air is excluded, the bale is denser and the quality of the silage is significantly better. Depending on the number of layers you can apply, you could save $1.00-$2.00 per bale. “Without netwrap, feed out is easier and faster, especially if you are using one of the new bale slicers, and you only have one form of waste to deal with, which makes recycling easier.” Paul McHale says the company’s engineers had to make several technical innovations so that the Fusion 3 Plus could effectively and consistently apply

The McHale Fusion 3 Plus film-on-film wrapping system delivers higher quality silage and makes recycling easier.

net replacement film. “The Fusion integrated baler wrapper can deliver 10% more output than other baler wrappers on the market. It was important for us to get the film working well so that it was reliable and did not reduce the baler’s output as it passed through different crop types and as the temperature changes over a day’s work. “The Fusion 3 Plus offers contractors a new service they can provide to differentiate themselves from their competition.” It also gives farmers

and contractors who need to bale hay, straw or other stalky crops the option to use netwrap because the chamber is designed to handle net or plastic. Power Farming expects half its McHale orders for the 2013-14 season will be Fusion 3 Plus machines. Leigh says McHale is also about to release its new variable chamber baler/ wrapper in New Zealand market. A demonstration version of the Vario machine will be working this summer. Tel. 07 902 2200 www.powerfarming.co.nz

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Dairy News september 10, 2013

machinery & products  // 63

Small, medium tractors work harder with more comfort NEW SMALL and

medium-frame tractors from the John Deere 6R series tractor range are now available in Australia and New Zealand. Including these, nine models are now available sized 78-154kW (105210hp). All 6R models offer new levels of power, performance and operator comfort, including improved suspension and cab visibility, more powerful hydraulics and increased lift capacities. The small frame 6105R, 6115R and 6125R models are equipped with a Stage IIIB 4.5L 4-cylinder John Deere PowerTech Plus engine rated from 78-154kW. The maker’s fuel efficient dieselonly PowerTech engines meet the latest emission standards. The medium frame 6130R model is powered by a 96kW 4-cylinder engine mounted on a 6-cylinder frame; the other two medium-frame models, the 6140R and 6150R, are powered by Stage IIIB 6.8L 6-cylinder John Deere PowerTech Plus engine rated at 103kW and 110kW, respectively. These new tractors also have a longer wheelbase to provide improved stability for loader applications. In addition, a higher permissible weight and payload allow bigger and heavier implements to be carried.

“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

An integrated front hitch with a lift capacity of 4000kg and a new front PTO are also available exfactory for the first time on 6R series tractors. The front hitch is compatible with the new John Deere H Series front loaders, designed for maximum visibility and to match the new tyre sizes and tractor chassis dimensions. Transmission options include the newly designed 24-speed DirectDrive, which combines the handling comfort of a steplessly variable shift transmission (IVT) with the power efficiency of a mechanical unit, but saving fuel – up to 10g/ kWh compared to an IVT. The new 6R ComfortView cab has 20% more space and a similar increase in visibility. It offers a new level of operator comfort, with features such as the full-colour GreenStar 3 CommandCenter display with optional touch screen and video capability, integrated climate and radio controls, Bluetooth connectivity with SIM card access and an optional panorama roof. The display is compatible with ISOBUS and tractorimplement automation (TIA) applications. Further options include the new adap-

tive hydropneumatic cab suspension (HCS), plus Triple Link Suspension (TLS) for the front axle, to provide optimum traction and operator comfort. A new versatile lighting system also delivers 185% more light than previous models. www.JohnDeere.co.nz

John Deere’s new 6R series offer new levels of power.

Refrigeration Control Technology from Eurotec ✓ Optimise the refrigeration capacity of your plant ✓ Reduce energy costs ✓ Reduce milk temperatures faster (and improve quality) ✓ Payback on investment on a typical dairy vat installation is less than 12 months!

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technology) Thermostatic Expansion Valves (TEV’s) with Carel Electronic Expansion Valves (EEV’s) provides outstanding superheat control of your refrigeration plant. This in turn maximises the cooling in the milk vat. By also installing Carel FCP Condenser Fan Speed Controls you can further maximise the plant potential. Eurotec Dairy Vat Control Panels can easily be upgraded to EEV versions and we now offer panels complete with valve drivers installed as an option for new installations. Ask your Refrigeration Technician or contact Eurotec for more information. Phone us on 0800 111 990

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Dairy News september 10, 2013

64 //  machinery & products

Scalable design inspires elegance THE FIRST of three

uct architecture’ (SPA), “revealing design possibilities,” the company says. The new Volvo Concept

‘concept’ cars from Volvo springs from the company’s new ‘scalable prod-

Coupé “showcases how design builds emotion into the Volvo brand and points towards the next genera-

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tion of Volvo models, starting with the forthcoming XC90 in 2014. “The Volvo Concept Coupé is no futuristic dream car. It [shows off] our new architecture: the confident stance, the proportions and the most prominent design signatures.” Developed in-house for Volvo Cars only, the SPA “liberates Volvo’s designers and engineers from the limitations of previous cross-brand platforms”. “The new Volvo Concept Coupé reveals how we could shape our cars from now on…. We add

emotional value to the Volvo brand.” Visual impact is greatest when viewing the Volvo Concept Coupé from the side, a spokesman says. A low bonnet, roof, and fivespoke, 21-inch wheels resemble an elegant Gran Tourer. Other design features include new topography on the bonnet and the ‘floating’ grille, flanked by headlights featuring new T-shaped DRL light guides. The DRL lights are distinctive elements in the new design direction of Volvo Cars.

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Echoes the iconic P1800 THE CONCEPT Coupé has elements that echo the design of the Volvo P1800 from the 1960s. “It is a car designer’s duty to reflect and incorporate design signatures that are vital parts of the company’s heritage,” says a spokesman. “The P1800 is an iconic Volvo, renowned for its beautiful forms and detailing. However, using elements from the P1800 exterior and interior has nothing to do with being retro. We are using these subtle links to create a future where beauty becomes a recognised part of Volvo’s identity.” Inside, refined, handcrafted elements such as a leather instrument panel, inlays made of naturally aged wood and the dark blue woven carpets are blended with machined metal details.” “Handcrafted crystal is one of the finest examples of high-quality Scandinavian design and I love the idea of bringing it into the car. The prominent position of the gear-leaver is the perfect place for this sparkling sensation,” says Robin Page, design director interior at Volvo Car Group.

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Dairy News september 10, 2013

machinery & products  // 65

Mixer works faster, gives better results THE FEED mixing task

that once took a Canterbury farmer 35-40 minutes to do with a paddle mixer is now taking only 10 minutes, says Webbline Agriculture, the supplier of the farm’s new machine. Mid-Canterbury farmers Ross and Trent Hibell milk 940 cows on 200ha near Ashburton. A mixer wagon they hired for six months last year proved unequal to the task – improving production, but

comparing the BvL to several mixer wagons used in recent months, Hibell has noticed a difference. Says Trent Hibell, “The smaller 15m3 mixer Webbline loaned us before this BvL was available, took more power and didn’t mix anywhere near as well. Especially when mixing straw, it wanted to throw it out the top… which proves not all vertical mixers are created equal. A fuel

struggled to get a consistent mix, whereas with the BvL we are comfortably mixing 8.4 tonne, mixed more consistently and in quarter the time,” Hibell says. BvL was among the

first companies making mixers in the 1970s and the brand is now a leader in Germany, says Webbline Agriculture sales manager Glen Malcolm. Tel. 0800 932 254 www.webbline.co.nz

Easy to drive… the JD 6530 can mix 8.5 tonnes of feed, no problem.

“We are feeding about two loads a day with the BvL: a mix of maize, grass silage, palm kernel and ryegrass straw.” running only slowly and struggling to mix bales. When the pair saw a BvL mixer at Lincoln Field Days they ordered a 27m3 model. While awaiting its delivery the farm is using a 20m3 BvL mixer, and it’s impressive, says Trent Hibell. “We are feeding about two loads a day with the BvL: a mix of maize, grass silage, palm kernel and ryegrass straw. “We are doing a complete mix in no more than 10 minutes versus our old paddle mixer’s 35-40 minutes, and it produces a mix inferior to that from the BvL.” Hibells are powering the BvL with a 120hp John Deere 6530. Webbline says that,

consumption meter on the tractor showed that with the 15m3 machine we were burning 16-17L of diesel an hour versus the BvL with 5m3 cubic metres more capacity using 14L per hour.” Straw bale processing was said to have been fast. “We load in two big squares of straw and after about two minutes it’s broken down enough to start loading the silage. The auger design of the BvL means the mix is constantly being drawn down instead of trying to boil over the top.” The BvL capacity is said to be a big time saver. “With the paddle mixer, even though it was the same volume as the BvL at 5.8 tonnes of feed, we

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Dairy News september 10, 2013

66 //  machinery & products

Sporty hatch uses less fuel THE KIA Cerato sedan

has been joined by a 5-door hatchback model in New Zealand, adding more practicality, as well as sports-oriented design flare, says the company. The Cerato 5-door is larger than the model it replaces, sitting on a 2700mm wheelbase. It also has features including

New Kia Cerato

SatNav for the first time in this model, a more comfortable ride, adjustable steering and new 1.8L and 2L engines . The smoother, more aerodynamic shape has cut wind drag and therefore fuel consumption and wind noise at higher speeds. Since the sedan was

On our way to a new season

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launched on world markets in the second quarter of this year, sales of the Cerato (also known as Forte in the US and Canada) have lifted. International sales for the first six months of 2013 show the Cerato/Forte is 13.7% ahead of the same period last year “That’s an extraordinary result when you consider that the 5-door model had practically run

out during the last couple of months and we could only offer the sedan,” says Todd McDonald, general manager of Kia Motors New Zealand. “That demand indicates the high level of customer acceptance for the new Cerato and bodes well for the 5-door model.” McDonald puts the demand for new Cerato down to design and price: it starts at $29,990 + ORC.

New arrival has wider appeal THE KIA Cerato/Forte has achieved 2.6 million sales since its 2004 launch, including 445,000 in 2011 when the second-generation model made up 18% of Kia’s total worldwide sales. And the all-new Cerato/Forte sedan, launched this autumn, has further raised sales, lifting 13.7% for the first six months of 2013, compared to the same period last year. Now a 5-door model has joined the Cerato sedan that arrived in New Zealand in May and will be followed by the 2-door Koup later this year, or early in 2014. With a sportier profile and European-inspired styling, the new Cerato 5-door hatchback is longer and wider than the current model, with an extended wheelbase. It has a re-engineered body shell structure and better quality, upgraded equipment, more convenience and safety features, a more spacious cabin and an upgraded powertrain said to give class-leading fuel economy. “This couldn’t have come soon enough,” says Todd McDonald, general manager of Kia Motors New Zealand. “We have experienced unprecedented demand for the sedan model since it was introduced in May and there is high expectation for 5-door Cerato, a volume seller for us in the C-segment of the market.” The result of 42 months of design, engineering and development work and a spend of 300 billion Korean Won (NZ$320 million), the third-generation Cerato model is made at Kia’s Hwasung factory in Korea. “We are confident that the new Cerato… will attract existing and new customers,” says McDonald. “It’s roomier, more practical and has some great features.” The new Cerato has been created to appeal to current Cerato owners and people down-sizing.

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and earn you more? It’s not easy to see exactly what’s going on inside your cows and whether their gears are in order or are at risk of being infected with endometritis. This infection remains hidden and animals can show little or no external symptoms. Up to 20% of your herd are at risk of developing endometritis post calving, leading to reduced conception rates and therefore fewer days in milk and increased culling. This means a potential loss of revenue of thousands.

To avoid endometritis becoming a costly issue on your farm, the best practice is: A. Identify, Record, Metricheck™ and Treat all of your ‘at risk’ cows B. Have your veterinarian Metricheck™ your whole herd in 2-weekly batches from 2 weeks post-calving, C. Your veterinarian will treat all cows that show any signs of pus with METRI-CLEAN which is introduced by passing a pipette into the infected uterus of the cow. METRI-CLEAN is made in New Zealand and is the only intra-uterine treatment available in both a single syringe treatment and multi-dose presentations. If you’re looking for an endometritis treatment that delivers benefits to your farm speak to your veterinarian about METRI-CLEAN.

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