Dairy News 25 November 2014

Co-op moves closer to another payout cut. PAGE 3

CHILLING HISTORY

Tractor maker’s polar expedition. PAGE 45 NOVEMBER 25, 2014 ISSUE 325 // www.dairynews.co.nz

BATTLE FOR CHINA Any suggestion that Australia would displace New Zealand in the Chinese market is ridiculous. – Trade Minister Tim Groser PAGE 4

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DAIRY NEWS NOVEMBER 25, 2014

NEWS  // 3

GDT slips and dips disappoint Skim milk power prices dived almost 6% last week.

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‘DISAPPOINTING’ WAS economists’ key word last week as GlobalDairyTrade resumed its slide, falling 3.1% overall with powders plunging 5-6%. All now predict a payout starting with four and a fall in Fonterra’s $5.30/kgMS forecast, possibly even before its board meets in December. “It’s disappointing,” BNZ senior economist Craig Ebert told Dairy News. “We had wondered if we’d see a bit more stability given the previous auctions were more flat.” BNZ didn’t immediately revise its prediction of $4.90/kgMS for 2014-15 but “downside risk” in New Zealand, but across before the auction GDT Nov 19 summary the world including had increased, said ● Average US$2561/t; index down 3.1%; China where production Ebert. “We want to 39,613t sold. problems 12-18 months revise it down but ● WMP down 5.1%, range US$2353/t ago sparked a scramble it’s just a question January shipment to US$2709 May for product that spiked of the timing and movement. prices but ended up in to what extent.” ● SMP down 5.7%, average US$2299/t, stockpiles. Others moved range US$2230-2741/t. Supply would evenimmediately, ASB ● AMF up 6.1% averaging US$3,490/t. Source: www.globaldairytrade.info tually ease in response to slashing 40c/kgMS lower prices but the signals off its estimate for are slow to reach producers in 2014-15 to $4.70/ kgMS and putting its $6.50/kgMS forecast for some countries and milking cows cannot be turned 2015-16 “under review”. It noted markets hadn’t “on and off” quickly so price recovery could be “a responded to Fonterra’s 14% reduction in its auc- bit longer coming than people think,” he warned. “We hope it does but we need to be conscious tion offering since June and with the cooperative’s intake up 4% to date on last year, and national pro- there might be a second year of ungenerous payduction 6% ahead, “there is is still plenty of milk outs… The message is we’d be reluctant to assume there’ll be a natural bounceback as soon as 2015to go around”. “The lift in supply may create a headwind to 16.” ASB economist Christina Leung pointed out prices recovering later in the season,” its Novemthat low grain prices have kept US and Eurober 19 economic update stated. Ebert also noted the supply increase, not just pean production growing and while there’s been

MIXED-BAG RESULT

a modest rally in corn and wheat values in recent weeks, “if they remain low it will continue to encourage [milk] production in these markets.” “A lot will depend on where the New Zealand dollar goes as well. We are factoring in a further moderation which in turn will support prices,” she added, noting the Kiwi was down about 1 cent against the US dollar on Wednesday morning after the GDT result. However, that wasn’t sustained, with the Reserve Bank’s Trade Weighted [currency] Index and 11am mid point against the US$ showing virtually no change from the previous day. Ebert pointed out the exchange rates were actually stronger than at the previous sale a fortnight earlier (US79c v US77c). “A while ago we thought [the NZ dollar] was on a roll good and proper but we went into this auction with it higher than it was a fortnight ago.” What it really shows is the difficulty in forecasting milk prices given the volatility of both commodity and currency markets. “There’s a huge range possible with any forecast.”

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4 //  NEWS

FTA good for Aussies and for us – Groser ANYTHING GOOD for Australia is in the long run good for New Zealand. That’s the reaction of Trade Minister Tim Groser to the news that Australia has signed a free trade agreement with China, and to speculation that their FTA with China is better than NZ’s, especially regarding dairy products. Grosser told Dairy News that the final details of the Australia/China FTA haven’t been revealed and won’t be for several months. He says once the political announcement has been made, the lawyers from both countries go over the agreement in detail to make sure the agreement in Chinese matches the English text. The process is called ‘legal scrubbing’. From what he has

gleaned so far, Groser says there is a degree of similarity between the New Zealand FTA with China and the Australian one. But he says it appears the Australians may have made some gains in the phasing out of tariffs – a point he will take up with the Chinese. But Groser says any suggestion Australia would displace New Zealand in the Chinese market is ridiculous. “The Chinese market is expanding so rapidly that Fonterra reached the conclusion five years ago that there was no possibility of a New Zealand based production system keeping up with demand. “That is why Fonterra is investing $1 billion in producing milk in China. And the New Zealand dairy industry is twice the size of

the Australian industry. “We were the same size 15-20 years ago but we now produce about 19 billion litres of milk and they produce 9-10 billion. So this idea that there is not enough room for us in China now that Australia has negotiated this good FTA deal is not based on any numerical analysis.”

Groser says a strong Australian economy is good for New Zealand and if their FTA strengthens their economy it will have a positive flow-on effect for New Zealand. “Specifically anything good for the Australian dairy industry is good for New Zealanders because the 10,000 Fonterra share-

Done deal: Australian Prime Minister Tony Abbott and Chinese President Xi Jinping in Brisbane last week.

holders own 20% of the Australian dairy industry. It’s an interesting paradox, it’s not a win-lose thing at

all. New Zealand has a slice in the success of the Australia deal.” Groser says key Aus-

DIFFERENCES WILL EVEN OUT OVER TIME DAIRY COMPANIES Association of New Zealand (DCANZ) executive director Kimberly Crewther says the deal is a good one and differences between the Australian and New Zealand FTA’s will even out over time. “It’s a case of swings and roundabouts,” she says. Under the Australian FTA, the tariffs on dairy products will be phased out in 4-11 years. This means the tariffs on

New Zealand product will be phased out sooner than Australia’s. However under the New Zealand FTA there are limits on the percentage of goods admitted tariff free every year; this is called a ‘safeguard’ clause and it appears Australia may not have such a restriction in its FTA. “Over time it will even itself out. With infant formula, for example, we have achieved zero tariffs now and there is no volume restriction. The Australians are

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tralian products such as sugar, wheat, rice and cotton are not included in the FTA.

going to take another four years to get to their own tariff rate cut. For butter we are under a safeguard provision and the Australians will have small tariff advantage once we hit the volumes.” Crewther says it’s probably too early to predict how the two FTAs will compare. But there are positive messages for farmers. “In the global context it is another step towards liberalisation for dairy products.”

DAIRY NEWS NOVEMBER 25, 2014

NEWS  // 5

Uncle Sam closing fast on cost ANDREW SWALLOW andrews@ruralnews.co.nz

OUR COSTS are going

up as US dairy producers’ come down, delegates have heard at a series of workshops on investments in off-paddock facilities. Setting the scene for the workshops, DairyNZ’s Kim Mashlan outlined the trend to “mega-dairy” feedlot systems in the US and how competitive they are. “We’re seeing the cost of production in New Zealand increasing while the cost of production in the US is decreasing,” she told about 20 farmers at Hinds, Canterbury, last week. A decade ago megadairies accounted for about 10% of US production. Today it’s 40% and increasingly they’re targeting export markets as domestic consumption declines, said Mashlan. “They’re actually building dairy facilities to capture customers in the export market.” Five years ago the average cost of production there was US$38/100kg milk equivalents. Now it’s US$35 “and there are farms in the US achieving better than this.” Meanwhile, New Zealand’s average cost jumped from US$28/100kg equivalent to US$33, albeit the

$33 figure was from the drought-affected 2012-13 season, so lower production may have inflated the figure a little, she acknowledged. In New Zealand dollars/ kgMS, some Californian and Idaho mega-dairies are at $6/kgMS and while the average in New Zealand is “still quite a bit lower”, some are already over that. While fellow speakers stressed the workshops were not to persuade people whether they should or shouldn’t invest in off-paddock facilities – be it a simple stand-off pad or fully automated freestall barn – it was made clear the data to support such systems is limited despite some of the marketing claims being made. “We’ve seen advertisements that say if you put on a barn you’ll grow another 2t/ha of pasture. What we’ve seen is you might increase pasture production 2-10% at most,” warned Mashlan. In some cases off-paddock facilities reduce pasture production as managers let grazing principles slip, added colleague Chris Glassey. “Probably under-grazing is the biggest risk from having offpaddock facilities.” Barns and feed pads in New Zealand generally cost more than in the

US too, it seems, as many of the mega-dairies are on dry otherwise unproductive land with thousands of cows on a few hectares. The land costs as little as NZ$500/ha and open lot systems cost about NZ$650/cow to build, and freestall barns NZ$1100. “That’s quite a lot cheaper than we are seeing here in New Zealand,” noted Mashlan.Only in the hot states such as New Mexico, where cool-

ing systems are essential, do housing costs equate to New Zealand’s, at NZ$3000-4000/cow. Feed for the megadairies is imported, often cheaply thanks to the scale of the operation, nearby cropping land and easy bulk storage in dry climates. Labour is cheap too, and facilities such as sheds run 21 hours/day, only stopping for cleaning. And as one delegate at

a Canterbury workshop noted, from what he’d seen in the US, farms do not provide staff housing. “Look at all that cost we’re carrying in comparison!” DairyNZ regional consulting officer leader Virginia Serra said she fears that if too many New Zealand farmers move to “these types of systems we’d be competing with the US.” @dairy_news facebook.com/dairynews

Kim Mashlan, DairyNZ.

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DAIRY NEWS NOVEMBER 25, 2014

6 //  FEDERATED FARMERS NATIONAL COUNCIL MEETING

Strategy refresh for farmer lobby PETER BURKE peterb@ruralnews.co.nz

FEDERATED FARMERS is

undergoing a ‘strategy refresh’ – discussions with all provincial presidents, facilitated by a

good days of looking quietly inwardly at their strategy”. The gathering was the new board’s first formal meeting with the national council since the Feds’ annual conference in July. The board has new elected members at provincial and

“We have a lot of capable people across the country so we need to be well coordinated with our messaging and how we service everybody.” management consultant. Feds president William Rolleston told Dairy News at the national council meeting in Wellington last week that the council and board had had “two

sector levels, including a new dairy chairman, Andrew Hoggard. Rolleston says a strategy refresh is “always an appropriate thing when you have a new chief

executive and chairman. The federation is in good heart, but what we are doing is looking at how we can work better as a team across the provinces. We have a lot of capable people across the country so we need to be well coordinated with our messaging and how we service everybody.” The ‘refresh’ is not a radical shift within the organisation, Rolleston says. The present staff structure is appropriate, built up over years. Feds is identifying key policies to examine: water, climate change, health and safety, and science and innovation. Human capability is a big issue in the science and innovation slot, Rolleston

says. “Is the right training being done? Do we have the right capabilities in science? Are we producing the right graduates? Are we communicating the message not just about science but also about agriculture?

“In the schools a lot of teachers don’t understand agriculture [or] science, and where they fit in society. We need to lift that messaging so that young people can see there are worthwhile careers in farming and

Dr William Rolleston

agribusiness.” Because agriculture is becoming so technical the sector must ensure it has

the skills to be able to stay ahead of the world. @dairy_news facebook.com/dairynews

THE COWPAT PROBLEM A SINGLE cowpat can contaminate enough water to fill 30 milk tankers, Feds national councillors heard last week. That water would be unsafe for humans to swim in. AgResearch microbiologist Richard Muirehead told the meeting a single

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8 //  FEDERATED FARMERS NATIONAL COUNCIL MEETING

Grinning O’Connor comes out swinging peterb@ruralnews.co.nz

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to lead discussions on key issues of interest to their members, such as science, water quality, local government and the political scene. O’Connor launched into a good-natured, provocative address saying of the election “we lost, you won”— a clear reference to his pre-election claims that the Feds were backing the National Party. O’Connor claims there are many leaders in the agribusiness sector now, but an overall lack of leadership and cohesion. He says New Zealand needs people who will ask hard questions about what the country is doing, what it needs to do and how to achieve this. “New Zealand is a small country with valuable but limited resources and huge opportunities for success. But as a society we have become a bit selfish, deciding to work on our own individual opportunities and losing sight

of the broader vision. The National government is happy to be market led but not be market leaders.” O’Connor says people have traditionally looked for governments to show the necessary leadership, but to be fair this shouldn’t all come from government. “The Federation, [as] the organisation that represents farmers, [needs] a wider industry perspective…. I look forward to engaging in a less partisan way with Fed Farmers so that they appreciate it is vision that is needed, not just a certain government.” O’Connor says Labour has its work cut out to reconnect with farmers and must discuss waterrelated issues and capital gains tax. He bemoaned Labour being seen in a less favourable light by many farmers, given the many good things successive Labour agriculture ministers have introduced.

Lift yield but don’t trash us PRIME MINISTER John Key says a bottom line for the public is that farmers may increase production provided they don’t harm the environment. Speaking at Federated Farmers national council meeting, Key says this is a challenge for farmers and the public will not take any excuses. “In recent years Federated Farmers has taken a responsible view of that issue. Dairy companies such as Fonterra have been in the forefront of that by encouraging farmers to fence 23,000km of waterways with dairy cows next to them. It will be compulsory to do that come 2017 and I’m confident farmers will get there before then.” Key says he believes that the public understand the importance of agriculture and are mostly hugely supportive – but not if they see farmers trashing the environment. The public must realise farmers are spending their own money to improve their environmental footprint, “driving up onfarm costs”. “It’s much more expensive to produce a kilogram of milk solids today than five-six years ago because you are forced to incur significant costs. “So the people who argue that farmers don’t do their bit in caring about the environment need to get out onfarm and look at what farmers have to do now compared with six years ago. Regulations have toughened up.” The Prime Minister also touched on foreign ownership of land. He says the perception that the Chinese are buying up large areas of land is not the reality. The purchase of the Crafar farms by Shanghai Pengxin was the first time a Chinese buyer had bought farmland in New Zealand. To date the big land buyers have been Americans, Australians, Germans and some big overseas pension funds – but not the Chinese. Key says the likes of Shanghai Pengxin seem to be more interested in the production side of things.

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DAIRY NEWS NOVEMBER 25, 2014

10 //  NEWS

Let’s lead the way in payouts SUDESH KISSUN sudeshk@ruralnews.co.nz

FORMER FONTERRA

director Jim van der Poel says the co-op should be setting the benchmark for milk payouts. In his farewell speech at Fonterra’s annual meeting in Palmerston North this month, van der Poel called for the co-op to deliver “a really competitive milk price”. “With our scale and capability we should set the benchmark for milk in New Zealand,” he told 250 shareholders. Van der Poel says other competitors should be struggling to keep up with the co-op. “A high milk price is not just good for our farmer shareholders… [it’s] good for New Zealand. For New Zealand milk to be seen as a pre-

mium product and being valued as such it is good for our country and our GDP.” Fonterra last year paid a record $8.40/kgMS milk price and a dividend of 10c/share, but the small Waikato processor Tatua paid $10.32/kgMS before

retentions to its 109 shareholders. Its farmers got $9/ kgMS as the final payout. Tatua also beat Fonterra in the 2012-13 season. Van der Poel says it’s critical for Fonterra to set the benchmark because its future prosperity depends on it, and its global busi-

nesses benefit from a good milk price ultimately flowing into them. Van der Poel, who has farming interests in Waikato and the South Island, stepped down after 12 years on the board. He enjoyed the stint there, including the chal-

CLEAR-SIGHTED EVOLUTION THE FORMATION of Fonterra and TAF are the standouts for former Fonterra director Jim van der Poel. He says many people underestimate the work that went into forming Fonterra 12 years ago. “There were three strong legacy companies competing with each other, in tension with each other at times. All of a sudden those people [came] together for a board and management point of view and were expected to work hand-inhand.”

He described TAF as a huge commitment from everyone involved with Fonterra. “It was untested ground but we have done it well; it’s doing everything we expected it to do.” Van der Poel believes TAF should evolve but he warns “we should be clear about what outcomes we are looking for.” He also urged Fonterra to continue investing at home and overseas to benefit shareholders.

Former Fonterra director Jim van de Poel (right) shares a light moment with new director Leonie Guiney and chief executive Theo Spierings at the annual meeting.

lenges, “the journey and process, and the relationships with the people… who make up this business. We farmer shareholders should be happy the co-op has a capable group led by chief executive Theo Spierings.” Van der Poel says he will watch with interest Fonterra’s growth, as it “aspires to become a globally relevant cooperative… well and truly on its way there.” Fonterra chairman John Wilson paid tribute to van der Poel. “I have personally known Jim as a farmer

and director for more than 20 years,” he says. “In the early years Jim was well known as a passionate and highly successful farmer who challenged boundaries: that bit has never changed. “And more recently as a conscientious and hardworking director who has used his deep knowledge of the business to help drive our co-op’s success.” Van der Poel served on many Fonterra board committees and played a lead role in its international dairy farming strategy. Wilson says van der Poel was known as a

strong ambassador for Fonterra, in New Zealand and globally. South Canterbury farmer Leonie Guiney has replaced van der Poel on the board. Van der Poel has also stepped down from the Fonterra Shareholders Fund created under TAF; another Fonterra director Nicola Shadbolt has joined the FSF board. Van der Poel was last month elected to the DairyNZ board. Asked if he was in line to take up the DairyNZ chairmanship he said, “I couldn’t possibly comment on that.”

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DAIRY NEWS NOVEMBER 25, 2014

NEWS  // 11

A2 baby formula sales boom in Oz PAM TIPA pamelat@ruralnews.co.nz

THE A2 MILK Company (a2MC) believes a lot of its new a2Platinum infant formula could be finding its way from Australia into China on the ‘grey market’ – though regulation changes have hampered its launch of the product there. Sales in Australia have exceeded projections since its launch in September 2013, the company says in its annual report. The Auckland company, which operates mainly in Australia, made sales of $106m in Australia in the last financial year and only $126,000 in New Zealand. Sales of a2Platinum in New Zealand have been hampered by limited distribution, the annual report says. “While sales are strong in the Australian domestic market, it is assumed a proportion is being purchased and subsequently shipping to consumers in China relying on an assurance of an Australiansourced product. Whilst it is not possible to determine sales in this grey market, this further confirms our confidence in the China market opportunity.” The a2Platinum launch into China was hampered firstly by its New Zea-

land manufacturer Synlait not initially gaining China registration under new rules; it now has registration after its canning plant opened. It is now also dealing with regulations on proving “close relationship” with a manufacturer. The company says it is confident of gaining necessary approvals and it plans a renewed marketing strategy in China early next year. a2MC launched a2Platinum in Australia and New Zealand in September, 2013. Sales have grown well in Australia where it has a strong relationship with several supermarket groups and other outlets, a spokesman told Dairy News. New Zealanders are much less aware of the a2 brand because of the low profile of a2 fresh. Dairy News understands the company is considering taking over distribution of a2 fresh milk in New Zealand when a licence agreement expires in 2017. Australia represented $106m of $110m sales worldwide with China sales at $2.7m and UK at $1.1m. The company’s overall operating revenue for the year to June 30 was $111m, up 17% from the previous year. It says the net after tax profit of $10,000 was hit by the New Zealand dollar rising against the

ASX LISTING COMING THE A2 Milk Company Ltd (a2MC) is applying to list on the Australian stock exchange ASX, likely in the first quarter of 2015. The company will stay listed on the NZX main board. Managing director Geoffrey Babidge says, “With a significant part of our earnings and growth coming from Australia, seeking an ASX listing is a logical strategic move for the company. “Listing on ASX will enable more Australian investors to participate in the company’s growth and will increase the attractiveness and liquidity of its shares. The board believes that this will benefit all shareholders.” Babidge confirmed a2MC would not seek to raise any new capital in its ASX listing. a2MC has appointed Goldman Sachs New Zealand and DLA Piper Australia to advise on the ASX listing.

Check out the latest news and information at www.dairynews.co.nz

Australian dollar, reducing operating revenue by $14m over the previous year. Plans for 2015 include an imminent launch of a2 Milk brand in Sainsbury’s and Wholefoods supermarkets in the UK and resumption of infant formula sales to China. It also

plans a trial shipment of a2 UHT milk into China, and a launch of a2 Milk into the US West Coast in the second half of the financial year, costing $20m over three years, according to the annual plan.

A2 says the success in Australia has not been replicated across the ditch.

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DAIRY NEWS NOVEMBER 25, 2014

12 //  NEWS

Drones tipped to fly food from farm to town

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FARMERS OF the future will build

drone stations on their land and deliver fresh food to urban consumers by the flying robots, says Dutch entrepreneur and IT guru Danny Mekic. As a consumer he envisages using an app to decide what to eat at night, with the fresh product drone-delivered to home directly from the land. That future is not far away, with drone delivery in the US likely within five years, he says. Just as we now have coffee choices from machines using disposable cups, he envisages food produced and manufactured by farmers made available to consumers through machines. Mekic, who is chief executive of New Team, urged 650 farmers and agribusiness representatives at the Rabobank F20 (Food) Summit in Sydney this month to embrace technology and social media advances – and he warned that industries that do not adapt will face crisis. “The world we constructed on the steam engine is entering a new era: social media, wireless technology and very powerful computers, and being connected with everybody in the world, is the new order.” Examples he gave of adaption

within agriculture included a Dutch dairy farm which partly financed an onfarm processing investment with internet crowd funding. He cited animal selfie campaigns which engaged consumers with farms, a Tasmanian export company which ran a real-time dashboard on its products and a strawberry producer who, tired of explaining his products, started an online strawberry academy. The Rabobank F20 focused on global food security challenges ahead of the G20 Leaders’ Summit. Mekic says he fruitlessly searched for apps relating to food security issues such as farm succession or labour. “I decided all those tech guys, including me, are busy with the wrong things. We are not solving real problems; we are creating apps, fun apps ‘liking’ each other all day … “I have bad news, we’re not going to solve the food security issues, you have to do it. You have to find a way to use social media and technology to make sure in the next decades everyone will get food and that food stays safe.” Farmers usually buy what they can hold in their hands, he had been told. “That’s a problem – if you want to do something with social media and the internet you need to invest in things you cannot hold in your hands. This is the new world. In the past you could

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look each other in the face across kitchen table…. this is the new society.” Google has 7.2b-plus interactions a day, Facebook owns 35% of the world’s pictures, You Tube has four billion requests a day and 4500 Tweets per second are shared on Twitter. Students around the world who were asked not to use their smartphones for 24 hours said, “I felt like a drug addict” or “I felt so lonely”. Organisations, farms and food and agribusinesses needed to adapt for new generations and redevelop a vision using social media for service and sales, e.g. drone delivery. With more and more people shopping on the internet it means anyone can supply. Supermarkets should be worried. Farmers need to connect with consumers directly. Some apps were available but farmers needed more control, to answer questions directly. “We need to think about how to become more transparent, how to educate the world about what we are doing and how to attract and educate a workforce.” Mekic says data is the new order but he sounded a warning. “Data is like teenage sex: everyone talks about it, no one knows how to do it. Everyone thinks everyone else is doing it.”

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emerges as the cheapest feed source, says fertiliser company Ballance Agri-Nutrients. The co-op says getting the best grass for the least cost can be achieved with a hand from science. Ballance science manager Aaron Stafford says the growyour-own approach of using nitrogen fertiliser to boost pasture growth provides the most cost-effective supplementary feed, but with cash-strapped farmers working within very tight budgets, they want to be confident of a good pasture response to money spent on nitrogen. “There is nothing more frustrating than seeing a poor or variable pasture response to nitrogen fertiliser…. We can help farmers get the best results by enabling them to tailor application rates to areas likely to produce the highest pasture response.” Application rates can be tailored using Ballance’s N-Guru, a software tool developed with AgResearch through Ballance Agri-Nutrients Clearview Innovations Primary Growth Partnership programme. Based on a soil ‘total N’ test that has been calibrated with pasture nitrogen response, N-Guru can help to improve efficiency of nitrogen fertiliser use, by linking data from the farm with a nitrogen response database.

DAIRY NEWS NOVEMBER 25, 2014

NEWS  // 13

Poor people skills worry Feds PETER BURKE peterb@ruralnews.co.nz

SOME FARMERS struggle to

recruit good staff because they lack the skills required of employers, says the head of Federated Farmers Dairy section. The issue worries Federated Farmers.

Andrew Hoggard told Dairy News there is a perception some staff are not treated well by dairy farmers – a reality on too many farms. Farmers need to acquire better people skills and not just do things as in the past, he says. There is no reason why farmers cannot change their ways. Farming’s workplace environment was discussed last week

at Federated Farmers’ national council meeting in Wellington, Hoggard says. “There is clearly a need to provide support in human resources and health and safety. It’s becoming more of a challenge and… we’re looking at it and coming up with smarter solutions in providing those skills to farmers. It’s still in draft stage.” Farmers are generally good at

looking after their cows and they need to look after their people equally well. “If they don’t manage the people well there will be no one to milk the cows.” The dairy industry needs short courses for now herd managers and looking at soon making the next step up in management, Hoggard says. Weeklong courses or courses to be done at home would be acceptable.

Andrew Hoggard

Laura Barr serves A2 milk to visiting teachers.

Teachers see top farm FORTY CAREERS advisors, science and commerce teachers recently visited a top-performing dairy farm in Manawatu during a one-day trip to see job prospects in farming. The teachers visited Stephen and Mary Barr’s farm near Feilding. The Barr’s produce A2 milk and sell some direct to the public from a vending machine at a ‘milk bar’ on their farm. Stephen Barr told the teachers of the importance of getting highly skilled, well trained people into the primary sector. The teachers had the opportunity sample the A2 milk. The teachers also visited a big asparagus farm in Horowhenua, a Massey University sheep and beef farm and the Agricultural Greenhouse Gas Research Centre at Palmerston North. Their day ended with an informal meeting at Parliament with the Associate Minister for Primary Industries, Jo Goodhew. The trip was organised by Dairy News reporter Peter Burke and DairyNZ industry education facilitator Susan Stokes. It was the second such trip and had a waiting list of teachers wanting to go. One teacher described the day as outstanding, another as inspirational. Massey University chancellor Chris Kelly went on the trip to provide an overview of the primary sector and to highlight the huge range of highly paid jobs available in the wider agribusiness sector.

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DAIRY NEWS NOVEMBER 25, 2014

14 //  WORLD

German buys UK processor, signals more to come

Dairy Crest delivers 1.3 billion litres of milk annually to UK supermarkets.

THE UK dairy industry

looks set for more consolidation as farmers and processors struggle to make ends meet. This month Germany’s Theo Muller Group bought Dairy Crest’s dairy

division for $154 million, its second big British buyout in two years; in 2012 it bought Robert Wiseman Group for $540m. Dairy Crest’s dairy business processes and

delivers 1.3b L of milk a year to big UK supermarkets; it also owns FRijj flavoured milk and sells bulk butter and milk powder. The deal, which will merge Dairy Crest with a Theo Muller operation

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to give a 30% share of the UK fresh milk market, is still subject to approval by antitrust authorities. However, Ronald Kers, chief executive of Müller UK & Ireland Group, warned about a threat to the UK market without further consolidation. “We are concerned that the dynamics of the UK fresh milk market are unsustainable for dairy processors in the mid to long term. This acquisition will allow us to reduce our costs, increase our efficiencies and invest in the future.” His comments are seen as leaving the door open for more acquisitions. Other UK dairy tie-ups include the 2012 merger of Milk Link into Arla, the Nordic-based dairy. Dairy Crest says that by combining its dairies business with those of Müller Wiseman Dairies (the fresh milk, cream and butter business owned

by Müller) it will further improve efficiency. “It will help to create a more sustainable UK dairy sector by delivering economies of scale and cost efficiencies that will underpin investment in the industry. “This in turn should help the UK to compete more successfully in global markets, which is essential for British dairy farmers. “Dairy Crest believes the transaction to be in the best interests of consumers, customers, dairy farmers, employees and Dairy Crest’s shareholders. It will create a stronger business that protects long term employment and has the potential to help reduce costs and increase efficiency.” Dairy Crest brands include Cathedral City, Davidstow, Country Life and Clover. In the year ended March 31, 2014 Dairy Crest’s Dairies operations had sales of $1.8b.

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DUTCH DAIRY co-op FrieslandCampina is spending $172 million to boost the capacity of its plant in Leeuwarden to meet growing demand for dairy from Asia, Africa and the Middle East. FrieslandCampina also expects the amount of milk supplied by member farmers to increase after the milk quota is abolished in 2015. The Leeuwarden plant in the northern province of Freisland will make extra evaporated and condensed milk for export. This month three new evaporators were lifted into the highest building. Each weighs 67.5t and is 28m long. In mid March the first pile was sunk for the 44m high building. The first phase will be ready late 2015 or early 2016. In 2017 the second phase will be operational.

Legend joins legendairy THREE-TIME AUSTRALIAN Olympian Michael Klim, has joined Dairy Australia as its Legendairy Ambassador, encouraging Aussies to think beyond their morning ‘splash’ of milk. Klim admits the partnership, which coincides with Dairy Australia’s latest campaign to encourage Australians to start and end their day with dairy, is one that’s been years in the making for the swimming champ. “Since my early Olympic days I’ve always thought a partnership with a dairy brand makes sense for me; not only do I love the stuff, my surname spells milk backwards – surely it’s a nobrainer fit! “Now, almost 20 years and my own Milk & Co skincare business later, I’m personally and professionally chuffed to align with Australia’s industry peak body for dairy,” Klim says. Eight out of ten Australians and six out of ten kids are not meeting the recommended serves from the dairy food group each day, and many parents don’t realise that as children grow their requirements grow too.

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DAIRY NEWS NOVEMBER 25, 2014

16 //  OPINION RUMINATING

EDITORIAL

Good to see neighbour succeed

MILKING IT... Come on Manawatu!

WHERE ARE all the sharemilkers in Manawatu? A tweet last week from NZ Dairy Awards said “No entries yet in Manawatu Sharemilker/ Equity Farmer of the Year contest. Hmmm. Come on.” Entries close November 30. Surely there’s at least one sharemilker in Manawatu proud of milking cows.

No bull

LABOUR SPOKESMAN Damien O’Connor had some advice for farmers last week. At the Federated Farmers national council meeting in Wellington, O’Connor passed on advice he got from his father many years ago. “When you go to buy a bull, check the breeding of the person selling it, not the breeding of the bull, because in the end you have to trust the person that sells you the bull.”

Windy meeting

THERE’S NOTHING wrong with Fonterra holding its annual meeting in a marquee. Except the Palmerston North weather was not onside: rain, wind and hail buffeted the big tent. Of the 250 farmers attending, only one complained about being unable to hear proceedings. The others just carried on. After all, these farmers go out to milk their cows at 4am every day – rain, hail or snow.

Under lock and key

MILK REMAINS a precious commodity for many people, including the UK Chancellor of the Exchequer George Osborne. He has been accused by his own deputy of being so tight-fisted that he keeps his milk in the Treasury fridge “under lock and key”. Danny Alexander, the chief secretary to the treasury, said the Chancellor refused to share his refreshments and that he has a padlock on his “double-size” office fridge. The Lib Dem minister offered the gem about his Tory senior at a Westminster lunch for political journalists, saying he attributed Osborne’s behavious to his having attended St Paul’s public school in London. “We do share things, but not the milk, which to my amusement he still keeps under lock and key.”

IT IS great to see Trade Minister Tim Groser and DCANZ executive director Kimberly Crewther taking a positive stance on the news that Australia and China have signed a free trade agreement. It would have been tempting to cry foul and to take on the Australians, some of whom are openly gloating – or are they merely happy – about what they see as a good deal. Let’s be frank, New Zealand would probably have put the same spin on such news. Groser and Crewther are experienced in the global minefield of trade negotiations and have an excellent handle on what this latest FTA will achieve. As Crewther points out, a key message is that China is continuing down the road of trade liberalisation and that is good news. China and Australia should be congratulated, not castigated, for what they are doing. This FTA will hopefully give greater world-wide impetus to trade liberalisation which will benefit us as a major agricultural exporter. Even if Australia has made some short term gain by this deal, it should not be seen as problem, rather an anomaly which gives Groser the perfect excuse for quietly persuading the Chinese to give a little more to New Zealand by way of tariff reductions. Groser points out that a strong Australian economy works in New Zealand’s favour; after all they are a major trading partner and the last thing we need is a flat Australian economy. This FTA will put spring into the step of the Australian economy, especially its ailing dairy industry. As the old saying goes, a rising tide lifts all boats. With our mates across the water, we simply need to keep rowing.

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 331100, TAKAPUNA, AUCKLAND 0740 OR EMAIL: dairynews@ruralnews.co.nz

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DAIRY NEWS NOVEMBER 25, 2014

OPINION  // 17

Meeting farmer expectations Fonterra chairman John Wilson spoke at the co-op’s recent annual meeting in Palmerston North. Here are excerpts from his speech. WE FORMED Fonterra on a firm belief that cooperatives are about unity and collective strength. We have that strength and this year we challenged ourselves to come up with ways we could use it more effectively for you. We are aware of the increasingly diverse expectations you as farmers have of your cooperative, and the changing demands for information. We have worked to provide significantly more support at a community leadership and on-farm level in the environmental area, working with Dairy NZ and other providers. We have made good progress but we recognise we can do more, as we strive to balance our aims to provide high levels of service to our owners while also addressing compliance responsibilities.

ties is ensuring everything we do ties back to our core values and the reasons we created Fonterra. One of our core values is ‘do what’s right’. We did that at the beginning of August 2013 with our precautionary recall of WPC80. We had a potential food safety problem and we were not prepared to take even the slightest chance with the safety of consumers, especially infants. While we received the all-clear on the safety of the product, it was also crucial that we conducted a thorough review of the events which led up to the recall, as well as the way we handled it. The board’s commissioning of an independent inquiry and the open way in which its findings were released, were vital to rebuilding confidence in our cooperative.

We have come far and now we need to go further. Recently, we announced Farm Source. It is designed to support you to succeed and grow so our cooperative can increase milk supply here in New Zealand: that is core to our business. Let me be clear – this is not just a rebrand. We would not waste farmers’ hard-earned money in that way. It is a total re-look at the way our cooperative supports you as owners. Farm Source connects our farmers to the full strength of our cooperative through a coherent package of service, support, rewards, online and financial options. It is a significant step up in the way we will work with you. We are bringing our farm support focus directly into the regions to better meet your requirements. Providing timely information is a priority. Today we as farmers get a much wider range of information from our cooperative. This includes on-farm data, fortnightly GDT results, the monthly Global Dairy Update with its analysis of production, pricing, market supply and demand trends, emails, and your monthly Farm Source magazine. Another of my priori-

The recommendations made, and the findings of management’s own review, took a lot of work. The finding that we have robust safety and quality systems meant we could focus on strengthening them and raising our sights to a goal of becoming a global benchmark for food safety and quality with a four-year programme now underway. The independent inquiry committee’s July review acknowledged and commended our progress. It is worthwhile reflecting on what we have achieved together. We set out to create a cooperative that would deliver for our farmers first, and also for our country. Dairy is the important mainstay of our economy, contributing 33.5% of New Zealand’s total merchandise exports in 2013. Since 2001, our revenue has grown from $12.5b to $22.3b. Our consumer and foodservice sales have risen from $4.6b to $6.3b. Our ingredients revenue has increased from $7.9b to $16b. We have succeeded in our aim to have a strong, competitive cooperative, making our way in the world, bringing the returns home.

An interesting measure is that at Fonterra’s formation our farmgate milk price was at a 37% discount to that in the United Kingdom. Today there is no discount. The value of your shares has grown from $4b to $10b.

We have come far and now we need to go further. By 2025 we want to be a globally relevant cooperative with $35b in revenue and with access to 30b L of milk from New Zealand and strategic geographic milk pools. The over-riding priority

is to ensure that over time we grow pay out from a well-executed strategy. As a country, as well as a cooperative, we must continue to take the long view. Our volume and value strategy works for Fonterra and it works for New Zealand.

Fonterra chairman John Wilson (right) with newly-elected board member Leonie Guiney at the AGM.

DAIRY NEWS NOVEMBER 25, 2014

18 //  AGRIBUSINESS

Precision ag can help face the pressure PAM TIPA pamelat@ruralnews.co.nz

TECHNOLOGY TRANSFER to help

farmers face economic and environmental pressures is a key challenge facing the Precision Agriculture Association of NZ and one reason the organisation wants to attract more farmers. Precision Agriculture holds tools to help farmers face regulatory and economic pressures including the current payout, claims chairman Craige Mackenzie, a partner in Three Springs Dairy, Methven, milking 1150 cows, beside his 200ha arable cropping farm. “It is very hard to be

green when you are in the red,” MacKenzie concedes. “So if farmers are not profitable they will not invest in technology so we are trying to help put information in front of people… to offer a profitable solution for them. “We know from our own farming businesses that we have been saving 30-40% on our fertiliser and 30% on our water. So if you can save money without impacting on production and be more site specific about application, it has to be good for your bottom line.” Three Government ministers have recently visited to understand what is happening in precision agriculture and they see the benefits, environmen-

tally and in respect of their mandate for NZ to double agricultural production by 2025. Mackenzie believes the Government should back more studies into how some international techniques may suit the NZ environment. Some work is being done through Massey, MBIE, PGP and the Sustainable Farming Fund. “But there’s no point having research sitting on the shelf; we haven’t done a good job in communicating how it is best suited to the farming community.” Mackenzie says he recently talked to a new group called the Strategic Primary Partnership, with representatives from MBIE, MPI, SFF and PGP, which is looking at

tech tranfers and the tendency for organisations to work in ‘silos’. “But you can’t just throw money at it. You’ve got to have a plan. There is reasonable funding available but the key thing is to put it in the right place.” Precision agriculture is taking root in various countries and situations. “We have to see which ones fit in New Zealand… in broadacre, i.e. more intensive agriculture. We fit well in this space because we have high production in New Zealand… so we can produce a lot in a small area with a lot of high inputs. So you are probably over-applying in some areas and in other areas maybe you can ramp it up.”

Mackenzie attended a conference in Sacramento in July to speak on variable rate irrigation in which New Zealand is a leader. The ‘number 8 wire’ mentality is useful. “We can adapt some of the best technology in the world and develop our own and turn it into something useful. That is the challenge and it will come from a combination of practical leading farmers, good open-minded scientists that work in CRIs and other groups prepared to work alongside and listen to some of the leading farmers. “Sometimes the best farmers have the most innovative ideas. We need the scientists to… prove it is robust and sustainable.

Craige Mackenzie.

So we need everybody.” Precision agriculture is about the right product, placed in the right place, at the right time, in the right manner and in the right amount, he says. “We talk about the five ‘r’s. People will say they do that on a paddock basis and they probably do, [but] they don’t do it on a spatial basis. Not until you understand your spatial variability do you get your head in the game. It’s not difficult to step to the next level and start to spatially apply products.”

To help with tech transfer Precision Agriculture plans events to raise its profile, further case studies on the website and support others in their conferences through presentations such as the Spacially Enabled Livestock Management Symposium held in Hamilton last week. “We want to work with DairyNZ, Fonterra, FAR and Beef + Lamb NZ and a range of organisations to support them.” www.precisionagriculture.org.nz

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DAIRY NEWS NOVEMBER 25, 2014

AGRIBUSINESS  // 19

Sharemilker gets to live his dream LOUISE HANLON

MANY BELIEVE that

using sharemilking as a stepping stone towards farm ownership is becoming a thing of the past, but Irishman Bernard Kelly and his Kiwi wife Jo are following this path to achieve their dreams. Bernard manages Noldy Rust’s farm, milking 200 cows, at Te Pahu, Waikato, but by hard work and a strong network of contacts

chairman of SMASH, a farmer group which supports smaller herd farmers, and he tapped into his contacts to find Bernard and Jo their next job. Jo says, “There are not many bosses who would have been like Noldy, knowing Bernard wanted to move on with his career and helped him get a job. Networking is important, if you want a job you need to get yourself out there. “For a young person SMASH events are great.

Zealand has been a positive experience from day one. We have been helped out by a lot of Kiwis and they have opened doors for us. Everyone is supportive as soon as they see you

are keen.” To find out more about SMASH and upcoming events see www.smallerherds.co.nz • Louise Hanlon is a SMASH committee member.

Bernard Kelly (left) with farm owner Noldy Rust.

Imagine a milking system you grow into not out of

they have landed a sharemilking job milking 180 cows near Cambridge next season. Bernard migrated to New Zealand six years ago, lured by the vibrant dairy industry and the chance to progress. He grew up on a farm, but after ten years bricklaying his dream of getting back into farming in Ireland seemed unachievable. “I saw I wasn’t going to get anywhere farming because it is all locked up in family farms; there is never any chance of progression. The next step was leasing a farm and you could never get the money behind you to get there. Here there were jobs all over the place, including the possibility of sharemilking. The best options were here, and even before we left we had a job lined up.” Jo agrees they made the best choice, with the extra bonus for her being the return home to Waikato. “Brett Worth, who farms near Putaruru, was willing to give us a job without even meeting us, a worker from Ireland with a young family, and he made us a part of his family.” Bernard and Jo agree networking is the key to landing a good job, especially a sharemilking job. Jo says, “If it wasn’t for Smaller Milk and Supply Herds (SMASH) we wouldn’t have had the opportunity to go sharemilking.” Noldy Rust is the

If you are looking to farm a smaller herd, you get to know other like-minded farmers. You can go to discussion groups, but they can be huge farms, and Bernard knew he wanted to go small, so he needed to go and network with other small farm owners and workers. “SMASH gets you off the farm as well. Sometimes being at home on the farm on your own all day can be lonely. With SMASH you are talking to lots of other people.” Bernard agrees, “It gives you other ways to think. Through hearing about different systems, talking to other farmers and seeing how they farm, you can gain new ideas.” Bernard is keen to stick with smaller herd farming. He says, “I don’t want to be a staff manager, I just want to be a good farmer. Doing it by yourself you get the variety of jobs, you don’t do the same stuff all day. I like focussing on my own game and bettering myself. “As a small farmer you have the passion for the land and the animals. We want to own our own cows, our own machinery. If it is your own it makes such a difference, you have pride in it, you look after it more, and you put more effort in as you are doing it to improve your own equity.” For Bernard and Jo their shift to New Zealand has been the right move for them, Bernard says, “New

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DAIRY NEWS NOVEMBER 25, 2014

20 //  MANAGEMENT

Reaping the rewards of strict f Kieran and Leonie Guiney entered the Dairy Business of the Year competition to prove a point. And at a field day earlier this month they made it. Andrew Swallow reports. LOW INPUT systems are highly profitable and more resilient in the seesaw world of modern dairy markets, say the runnersup of the 2014 Dairy Busi-

ness of the Year. Kieran and Leonie Guiney run four dairy farms and 2800 cows near Fairlie, South Canterbury: two irrigated, two dryland.

They own two outright, two in partnership and have a 400ha hill block run-off. It’s a business they’ve built from nothing in just

CAREER PATHS KIERAN GREW up on a small dairy farm in Ireland and trained as an industrial electrician. He met Leonie in New Zealand on an OE, and again later in Ireland when Leonie was working there. Leonie was raised Wellington, went to Massey University and became a consulting officer in Taranaki and Canterbury before going to Ireland to help farmers get back to grass. In 1999, after five years there, she and Kieran returned to New Zealand, Kieran recruiting staff for farms and Leonie working for FarmRight and at Lincoln Uni.

They went contract milking in 2002 and by the time they bought their first farm in 2005 they had two 50/50 sharemilking positions on the go, including the farm at Fairlie which they bought. They’ve since converted three more farms nearby, one irrigated, two dryland, with contract milkers on their home and other irrigated farm and lower order sharemilkers on the dryland farms. Both sharemilkers started on the Guiney’s farms on wages and have been offered 50/50 positions in future.

over a decade on the dairy ladder with strict pasture management and rigid return on capital criteria. In 2012-13, the season on which they were judged for the 2014 contest, their cost of production on their home farm, Oak Park, was $2.86/kgMS, the lowest of all finalists. With a $5.84/kgMS average Fonterra payout and 1377kgMS/ha, that left an operating profit of $4607/ha compared to a Canterbury average of $2137/ha and Canterbury top 10% of $4029/ ha in Red Sky’s database. Nationally those benchmarks were $1997/ha average, and $3825/ha. For Kieran, benchmarking against the best was a key driver for entering the competition, but as Leonie explained at the field day earlier this month, she had a broader

Kieran and Leonie Guiney

agenda: showing that simple pasture systems, executed well, are what make New Zealand internationally competitive. “We entered to try to win and we nearly did,” she

told the field day crowd. Competition scoring is 70% on financial performance, as analysed by Red Sky, 15% on human resource management, assessed by No.8 Wire HR,

and 15% on environmental management, scored by Intelact subsidiary Headlands. Oak Park’s return on capital (ROC) was 7.2%, third best overall, coming

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MANAGEMENT  // 21

farming rules in behind Supreme winner Longland Dairies, Canterbury, and the best medium/high input system winner, Stolte Dairy Farm, Manawatu. They both did 7.5% ROC, though the latter’s operating profit was lower at $3708/ha. A field day will be held at Longland Dairies on December 1. Leonie later noted the competition’s “very generous” valuation of the farm, pricing it as an irrigated dairy farm on the Canterbury Plains, where the climate isn’t nearly so harsh as the Fairlie Basin. “So it’s for sale if anybody wants to pay us that,” she quipped to the field day crowd, though without mentioning the figure. The implication was the competition ROC calculation was lower than reality. ROC when they bought the farm was 11%, she pointed out, and as their equity is only a proportion of that capital, it met their investment threshold of 15% return on their equity, without counting capital gain. “When we were sharemilking our return on equity was ridiculously high – 70, 80%.... If you invest in a farm and you are only paying the inter-

est rate you’re just very busy and buying yourself a job.” For years they’d resisted buying a runoff block for that reason but last year “caved in”, buying a nearby 400ha hill farm which they budget will make 7% return on capital, but should boost returns on the dairy platforms. “We’ve justified it on taking control of our young stock,” Guiney explained. They do have a couple of excellent graziers but returning heifer weights from some had disappointed them and the business was “exposed”. Asked what they’d do if starting out now, they said they wouldn’t change a thing: get financially literate, find a good employer, and “be prepared to be in the cowshed with your babies for a time of your life.” Guiney said contrary to many comments, she believes there are still opportunities to make the career progress they’ve had. “Kieran finds an opportunity every week. I just have to keep him under control.” Kieran brought it back to the strategic plan or mission statement they opened the field day with,

which includes having the time to enjoy their lifestyle, which was why they’d not acted on recent “opportunities” on the West Coast. He also stressed the importance of not overdeveloping a farm. “Take it to 80% then use the capital you’d need to get that last

20% of potential on the next farm. For example, we could spend a million putting in a rotary here but the return on investment would be dismal.”

Farmers attend a field day at Oak Park Dairy.

"Now it's time to sit back and relax..."

Graham Barlow - Waikato

NO KNEE-JERK TO ENVIRO RULES AT 60%, Oak Park’s environmental score was third-lowest among the eleven DBoY finalists. That’s despite lining effluent storage with three months’ capacity and installing effluent lines on pivot irrigators to reach 80% of the farm, eliminating travelling spreaders. All waterways are fenced, including a 35ha bush margin along one creek, and riparian planting elsewhere is underway. An underpass keeps cows off the road. Nitrate leached was calculated at 62kgN/ha for 2012-13. A field day visitor asked what could be done if that was capped at 35kgN/ha/year. Presenting the environmental session, Joe Edlin of Headlands said 62kgN/ha was “not bad”. “Some [dairy farms] are at 100 to 120.” The biggest driver is urine patches and best management practice could only achieve a 1520% reduction. “If a significant drop is required then drastic changes are needed,” he said, suggesting de-stocking and stand-offs. Leonie Guiney said they would take further action, if need be, when they had good, realistic data. When first modelled with Overseer, the farm had come out at 32kgN/ha/year losses, then 95kg following a revision of the model, and now 65kg. “We need to respond to good data, not farcical data, which is where Overseer is at the moment.” Guiney says she believes in time it will be shown that simple pasture systems, responsibly managed, do not lose a lot of nitrogen.

THE LELY ASTRONAUT ROBOTIC MILKING SYSTEM HAS TAKEN ALL THE PRESSURE OFF! Graham Barlow is remaining at the forefront of the dairy industry with his latest project - the installation of 4 Lely Astronaut A4 robots in February earlier this year. He was born and bred on his Gordonton farm in the Waikato, and is currently milking 310 cows through the Lely Astronaut robotic milking system. After seeing Lely robots in action on another local Waikato farm, Graham decided to pursue options for his farm. "I chose Lely due to the high level of service back-up and the machine itself". Previously, Graham was milking through an existing herringbone shed, and as no resource consent was required for a new shed, he filled in the pit and installed the robots on top.

start until 7.30am in the morning and have less workers on the farm saving in labour costs". The Lely robots are set up with an ABC grazing system & feed pad, where fresh grass is available three times in a 24hr period, improving the well-being of the cow. "The robots work brilliantly in a grazing situation" he adds. The Barlow's are also kept well informed about the herd and milk performance with the Lely T4C management system. "I love the data coming off T4C, from cellcount, to milk production, to knowing definitely if the cows are on heat or not, it's fantastic" says Graham. Call Lely today on 07 850 4050 to see how you can get more out of your farm and to visit a Lely Astronaut robotic milking farm near you.

"The cows are now very happy and relaxed, it takes a lot of pressure of the farm", Graham explains. "I don't

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DAIRY NEWS NOVEMBER 25, 2014

22 //  MANAGEMENT

Retaining crucial carbon in soils BALA TIKKISETTY

RECENT RESEARCH

shows some pastoral soils lose more crucial carbon and nitrogen than others. The reason isn’t known

Cultivating and overgrazing can cause carbon losses in soil.

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precisely yet but it could be important. Research continues. What is known is that pastoral farms on certain soils (allophonic and gley soil orders) have lost an average of one tonne of

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soil carbon per hectare a year in some parts of the country. Soil carbon is found primarily in organic forms, which make up soil organic matter (SOM), which includes other important elements such as calcium, hydrogen, oxygen, and nitrogen. SOM, made up of plant and animal materials in various stages of decay, helps maintain soil structure, retain soil moisture and prevent erosion. It can also act as a reservoir for nutrients and as a source or ‘sink’ for carbon. Increasing levels of SOM is likely to enhance soil biological processes and soil sustainability. A soil is carbon-positive if the amount of carbon sequestered (added or held) is greater than the amount of carbon lost through decomposition, leaching and volatilisation (nitrogen loss to the atmosphere as ammonia gas). Determining the amount of soil organic carbon in soil is particularly important for understanding soil health and knowing the type of organic carbon present is also important as this can greatly impact soil productivity. The amount of organic carbon in SOM varies significantly across soil types and the amount can be altered by management practices. In good soils organic carbon can be about 10% or more of SOM, while in many soils which are heavily exploited, levels are about 5% or less.

As indicated, soil management practice can affect these percentages. This is important as this can have an impact on the health and productivity of the soil. That’s because of their impact on losses of carbon from soil due to decomposition, and the conversion of carbon in SOM into carbon dioxide. Cultivation and overgrazing in particular can both cause carbon losses. Soil organic carbon inputs are controlled by the type and amount of plant and animal matter being added to the soil. Any practice that enhances productivity and the return of plant residues (shoots and roots) to the soil opens the input flow, and increases the amount of carbon in the soil. Also, most carbon enters the soil as plant residues. A variety of management practices, such as crop rotations and improved cultivars, can increase soil carbon levels. Reduced tillage or no-tillage management practices can increase soil carbon levels as well because carbon in the crop stubble is left to return to the soil. For farmers, therefore, learning about the factors that influence soil carbon levels of their properties can benefit short-term productivity and longterm viability. Tel. 0800 800401

• Bala Tikkisetty is a sustainable agriculture co-ordinator at Waikato Regional Council. @dairy_news facebook.com/dairynews

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IN BRIEF Spotlight on growing heifers DAIRYNZ IS setting up heifer-rearing focus farms to help graziers. Located in Waikato, Northland, Manawatu, and North Otago, the farms are to provide graziers with the knowledge and resources to grow dairy heifers more effectively. DairyNZ is organising open days at each farm over the next four weeks and encourages graziers and dairy farmers to attend. Topics will include target weights, feed planning, animal health, managing grazier-dairy farmer relationships and setting up calves for a run-off.

DAIRY NEWS NOVEMBER 25, 2014

MANAGEMENT  // 23

Farming in a low payout season A BIG drop in the milksolids price has left many farmers wondering how they can make a profit – or at least minimise their loss – in what promises to be a financially challenging season. Profit is the difference between income and costs. There are essentially three ways to increase profit: increase income, decrease costs or do a combination of both. Cutting costs which do not affect production (e.g. deferring the purchase of a new ute) will automati-

cally improve profitability, however the reality is that many farm costs (e.g. depreciation and labour) are semi-fixed. Reducing inputs such as feed, fertiliser or animal health is likely to have some impact on production, either now or in future seasons. This is where budget slashing gets a whole lot trickier. In a paper titled ‘Smarter spending for a low payout’ presented at a recent Southland Demo Farm field day, Howard de Klerk (Dairy Nutrition and Management Solutions)

Table 1: Total production cost of an average NZ dairy farmer.

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shows that the biggest cost to the average NZ farmer is interest (Table 1). De Klerk points out that while it is not included in farm working expenses, and therefore the net profit per hectare, interest has a major impact on the amount of cash the farm generates. Changing production per cow will not alter interest (assuming no extra shares are required or sold), but as production rises, interest per kgMS drops. Diluting interest costs by keeping production up is important, especially for farms with higher debt loadings. The key, according to De Klerk, is to find the level of production where operating costs are controlled, but the farm is producing enough milk to dilute interest and other semi-fixed costs. At this ‘sweet spot’ profit is maximised; production below this level is not optimum and production above this level is simply buying production. So what are the keys to farming profitably in a low payout year? Good farm management practices should apply whether the payout is low or at record levels. The key difference is that in a high payout year you can make more mistakes and still be profitable. Three things to consider are: Reduce costs carefully Before cutting any input ask yourself, what will be the impact on production, and will the saving outweigh any potential loss in income? Reducing feed input usually reduces milk output. Be realistic

about how much supplementary feed you need. Don’t assume you can make it through with a lot less than previous seasons unless you can see realistic opportunities to increase pasture and/or supplement utilisation, or are happy to accept a drop in production. Make sure your comparative stocking rate (CSR) is in the correct range. DairyNZ recommends a CSR around 80 to maximise profit. This means that for every tonne of feed offered there should be about 80kg of cow liveweight to eat it. See http:// www.dairynz.co.nz/feed/ feed-management-tools/comparative-stocking-rate/ to calculate your CSR. Purchase supplements wisely and use them strategically. The main aim of feeding supplements is to fill feed gaps, and therefore produce more milk. It will always be uneconomic to feed supplements and waste pasture, or to waste supplements. Think about what you are trying to achieve with your feed, and compare bought-in supplements on a c/MJME basis. Look for opportunities to reduce your supplementary feed spend by switching to a higher proportion of lower cost, home-grown supplements such as maize silage. As de Klerk points out, profit will already be down this season due to the lower milk price. Reducing production could reduce profit even further so think carefully before you make any decision to cut costs which will drastically affect your production. For a full copy of ‘Smarter spending for a low payout’ visit http:// www.siddc.org.nz/assets/ Stlh-Demo-Farm-FocusDays/Handout-Focus-DayOct14-2.pdf. • Ian Williams is a Pioneer forage specialist. Contact him at iwlliams@genetic.co.nz

LATEST STORIES EVERY DAY Get upto date news at www.ruralnews.co.nz

DAIRY NEWS NOVEMBER 25, 2014

24 //  ANIMAL HEALTH/BREEDING

Top performer keeps at it HERD IMPROVEMENT CRV Ambreed’s top bull Aljo TEF Maelstrom.

company CRV Ambreed says its top-performing bull Aljo TEF Maelstrom

continues to show strong genetic value. The bull has broken the 300 mark on the breeding worth (BW) and New

Zealand merit (NZMI) indices, a first for any CRV Ambreed bull. Managing director Angus Haslett says the indices are nationally recognised – BW as an economic index and NZMI as a desired gains index. They are useful guides in developing a breeding programme, he says.

America. Maelstrom is the son of renowned bull Firenze, one of CRV Ambreed’s most productive HolsteinFriesian sires, who retired in 2014. By 12 years of age, Firenze, had produced 643,000 doses of semen sold in New Zealand, Australia, South Africa, Chile, Philippines, Mexico, USA, Malaysia,

“He ticks many boxes that dairy farmers in New Zealand can utilise to improve their herds.” “We’ve had a great run - thanks to our vet support, and the proven performance of Eprinex®”

“NZMI was created by CRV Ambreed to help us breed what we believe to be more desirable traits for economic benefit, creating a long-lasting and productive herd for our customers. “Only the top five bulls of any breed in the country are at or above the 300 mark – so this milestone means Maelstrom is part of an elite level of genetics. Maelstrom entered the market in 2013, and throughout 2014 he has been top of the CRV Ambreed list for both NZMI and BW indexes. “We have sold every dose of semen this bull has produced… over 130,000 doses in his two years of being marketed,” in New Zealand, the US, South Africa, Australia, Ecuador and South

Tom Goodwright, 2nd generation dairy farmer, Waiuku

Fiji, Ecuador, Uruguay, Argentina, Coasta Rica and Thailand. Haslett says in New Zealand alone Firenze is recorded as having 47,805 daughters in 3683 herds. “Of his sons, 67 have been enrolled on the animal evaluation database for herd improvement in New Zealand.” Maelstrom’s breeder, Alistair Megaw, West Otago, says his strengths are protein, fertility, longevity and udders. “He ticks many boxes that dairy farmers in NZ can utilise to improve their herds. “We have a number of Maelstrom’s daughters in the herd. They have great production, temperament, fertility and no mastitis. They’re also of good stature.”

Maelstrom’s daughters boast great production and have little animal health issues.

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DAIRY NEWS NOVEMBER 25, 2014

ANIMAL HEALTH  // 25 CRV Ambreed managing director Angus Haslett (right) and operations manager Andrew Medley in the new facility.

World-class semen collection centre to open next month ANIMAL BREEDING company

CRV Ambreed says its new bull centre in Hamilton will provide a world-class facility for farmers around the world. The new CRV Bellevue production and logistics centre will be opened next month by Primary Industries Minister Nathan Guy; CRV’s Netherlands-based supervisory board and executives will also attend. The facility will house bulls, and collect, process and store their semen, distributing it to domestic and international markets. CRV Ambreed operations manager Andrew Medley says a world class logistics division of the business will also ensure orders are delivered in time and in full. Medley says the aim is for the centre – capable of housing 200 bulls – to become “a world class export approved bovine semen production

and logistics centre,” he told Dairy News. “[It meets] the highest standards required to ensure the CRV business meets its export compliance

“Export compliance standards are continously being scrutinised by Government authorities so we had to improve our bull facilities to continue to supply export markets.” requirements, biosecurity requirements, animal welfare standards and a safe working environment for staff and bulls.”

The centre will supply to 30% of the market in New Zealand. At least 1.4 million straws of New Zealandproven genetics are now distributed from the centre – 400,000 straws to international markets. The centre has merged three operational CRV Ambreed locations into one; up to 20 staff will work each year at the centre. Medley says the amalgamation was needed “to protect our right to stay in business”. “Export compliance standards are continuously being scrutinised by Government authorities, so we had to improve our bull facilities to continue to [supply] export markets. “The CRV business has also grown over the last five years and being on the one location will help to enhance our efficiency.” @dairy_news facebook.com/dairynews

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DAIRY NEWS NOVEMBER 25, 2014

26 //  EFFLUENT & WATER MANAGEMENT

The value of a well-designed storage pond A WELL-DESIGNED and managed

effluent pond is efficient and reduces risk to a farm, says DairyNZ. It also increases flexibility: you can determine when to irrigate at a time that suits. It allows more effective utilisation of nutrients and water and reduces risk of effluent non-compliance, protecting the environment in the process. DairyNZ urges farmers to keep three things in mind when designing a pond: a sealed pond avoids leakage to ground-

water, a well designed structure allows for operation and maintenance, and such a pond will meet regional and district council and Building Act requirements. Planning is a critical stage, DairyNZ says. “Poor information now will compromise the whole project and your effluent pond may never meet your needs. To ensure your designer and contractor has the right information… you will need to tell them about your intentions and design preferences.”

GET IT RIGHT When making the decision to install a new farm dairy effluent storage pond, consider: ❱❱ Planning ❱❱ Working with consultants and contractors ❱❱ Design options.

A well-designed pond is efficient and reduces environmental risks.

Future-proofing is also important. “You do not want your new pond to be inappropriate or unable to cope in five years.” Good workmanship is also critical – using the right persons for the job. Designing and constructing FDE ponds is a technical job and requires specialist knowledge, DairyNZ says. “Get a suitably qualified person to design your pond… for assurance that

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it will be appropriate for your farm and farming system. It must comply with regional council requirements and be designed with an understanding of the current research and best technology options available.” Earthworks contractors and equipment/service suppliers may both be involved at different stages of the construction process e.g. excavation, liner installation.

Choose contactors experienced in building ponds and showing industry and farmer references. A suitable contract is critical before design or construction begins, to ensure both parties are clear about expectations. A written contract will protect your interests and set out your rights and obligations. It also gives your engineer/contractor an incentive to get things right first time.

DAIRY NEWS NOVEMBER 25, 2014

EFFLUENT & WATER MANAGEMENT  // 27

Plain-sailing pond job pleases farmer, wins business award AN AWARD-WINNING

effluent pond on a North Canterbury dairy farm is meeting its owner’s needs and satisfies the requirements of the regional authority, reports the contractor. With Environment Canterbury increasing pressure on dairy farms, Swannanoa farmer Brian Tinomana saw the need for more effluent storage on his 300ha farm. His search for a contractor led eventually to a contract with Worthington Contracting, which managed the entire project from resource consent requirements and design to construction and reinstatement. “I looked around a few years ago, then [Worthington Contracting] came and saw me,” Tinomana says. To comply with his current Environment Canterbury resource consent, he needed increased effluent storage and effective irrigation systems. Tinomana already had effluent distribution across his farm via a centre pivot irrigation system, helped by relatively free draining silt loam soil. He had very little storage capacity however which meant risking saturation problems during periods of heavy rain. Any release of effluent waste could then have caused pooling in which the waste water sinks below the

grass root level, contaminating the environment. In this event the stagnant water can prevent surrounding grass and plants from receiving nutrients and can directly affect milk yield, since cows will decline to eat grass covered in effluent. Worthington completed the design and excavation while subcontracting the transfer systems, electrical work and pond lining to Plucks, Nairn Electrical and Viking Containment, respectively. The completed pond measures 72m x 32.5m with a 6,454m3 volume. Anticipating the effects of flooding, the pond batters were built 500mm above ground level. To save time and costs, the soil cut from excavation was used to build the batters. Geotextile was installed to protect from rough ground conditions before a 1.5mm HDPE liner was installed to achieve the resource consent conditions of less than 1x 10-9 m/s permeability. The pond was constructed precisely between the wheel tracks of Tinomana’s centre pivot irrigation using GPS, helping to maximise the pond size while minimising the area of favourable grazing paddock it occupied. The completed pond now gives Tinomana the sufficient amount of storage he needs to satisfy

Brian Tinomana’s effluent pond under construction.

Environment Canterbury. He can store at least 6.5million litres of effluent and stormwater run-off before having to disperse it across his paddocks.

Tinomana was satisfied with the overall project and his new pond. “I’m very happy. As far as a turn-key operation is concerned, from resource

consent through to turning the key everything has run smoothly.” Most recently the Effluent Pond won the 2014 New Zealand Contrac-

tors Federation (Canterbury/West Coast Region) award for contracts up to $250,000. It was also the key project in Worthington’s prize-winning entry

in the Enterprise North Canterbury Business Awards, agribusiness category. Tel. 03 313 5615 www.worthington.co.nz

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DAIRY NEWS NOVEMBER 25, 2014

28 //  EFFLUENT & WATER MANAGEMENT

Weeping wall joy TONY HOPKINSON

Farmers study the weeping wall effluent system on the farm.

TOTAL CONTROL of the effluent process is the key benefit of an Archway weeping wall effluent system, says the company owner Matt Hodgson. “The success of the Archway weeping wall

system is that all material is totally contained until the liquid is sprayed and the solids are spread on suitable pasture or cropping ground,” says Hodgson. He and his wife Amanda own Archway Construction and its subsidiaries Archway Environment and Tri Block.

The whole weeping wall system can be built in no more than one week. Of modular design, its walls and ends are erected quickly, the floor poured and the outside backfilled. The concrete floor, the panels and the sealant between the panels are treated to withstand the corrosive effect of effluent. Dairy News attended an open day on a farm with an Archway weeping wall. The Tauwhare, Waikato farm is owned by Trish and Paul Jones and has been sharemilked eight seasons by David van den Beuken and his partner Jenny Buckley.

struction weeping wall system that separates the solids from the liquids, the liquid green water transferring to a lined holding pond 45 x 45 x 3m with six weeks storage capacity. From there it is pumped back to holding tanks and used for flood washing the feedpad. The surplus is pumped to pasture via a low application-rate spraying system. “The big advantage on this site was that the shed is on a small hill, so gravity took the liquid all the way to the pond,” says van den Beuken. Neilson told the field day audience of the

The whole weeping wall system can be built in no more than one week. The farm carries 540 Jersey and Jersey-cross cows, milking in a 36-aside herringbone dairy. Adjacent to the shed is a feedpad, 100m x 20m, that can hold 300 cows. The farm’s milking platform is 170ha, flat to rolling and centrally raced to 80 paddocks with 50ha available for spray irrigation. The farm is a seasonal supplier to Fonterra. Fonterra told the Jones three years ago that the farm’s effluent disposal system, largely dependent on spraying, no longer complied with co-op standards. They began building a large holding pond to contain all effluent for spraying, but “something was telling us this option was not the best, so we called a halt to give us time to explore other options,” says Trish Jones. The project was suspended for 12 months, during which they contacted Agfirst Engineering, Te Puke, dealing with Geoff Neilson. Agfirst designed and managed the building of the cowshed and effluent systems. “We had special problems with this project because of the high-risk soils with impervious clay areas and low-lying areas prone to ponding,” says Neilson. The solution was to install an Archway Con-

need to build ‘future proof’ effluent systems rather than accept stopgap solutions. Fonterra compliance rep Abigail Silvester endorsed this view, reminding the audience that the co-op has advisors to help suppliers get the right compliance advice. The Archway weeping wall system has two parallel pits 39 x 6 x 1.5m. “We believe each pit will only be cleaned every six months, just before the second pit is full, so it is very solid material,” said Archway’s Hodgson. The pits are designed to be cleaned from either side by a 12t digger and the material dumped in an effluent trailer for spreading on pasture. All speakers commented on the effluent’s fertiliser value and the resultant cost saving for farmers. Each Archway weeping wall system comes with a free Hills Laboratory nutrient testing kit for testing raw effluent leaving the yard, solids nutrient content and the content of the spray. Farmers then know the value of the spread material and their compliance levels. DairyNZ says one cow produces $25 of nutrients annually. Tel. 0800 272 4929 www.archway.co.nz @dairy_news facebook.com/dairynews

DAIRY NEWS NOVEMBER 25, 2014

EFFLUENT & WATER MANAGEMENT  // 29

Yardmaster buys stainless range executive Keith Cooke says they had to act decisively when the opportunity to buy ISD arose. The deal was done, plant and stock was moved to Matamata and the separators were back in production, all within five weeks from go to whoa. They had recently bought a large factory in Matamata and had space, so it made sense to consolidate all manufacturing, including the ISD stainless steel production, on that site. While the integration has been necessarily rapid, it has gone remarkably smoothly, says Cooke. The separators complement the existing range of Yardmaster pumps, stirrers and other effluent equipment, and Cooke says they can now offer a complete suite of effluent

ADAM FRICKER

YARDMASTER IS syn-

onymous with effluent equipment but has only recently added stainless steel manufacturing to its resume by buying the assets of Whangarei company Industrial Stainless & Design Limited (ISD). ISD was a well established company with a reputation for making quality stainless steel products, including effluent separators. By buying the assets of ISD and taking on some of its key engineering staff, Reid & Harrison, owner of the Yardmaster brand, has scaled up the output of its factory and rounded out its engineering ability and product range in one bold move. Reid & Harrison chief

solutions, all now carrying the blue Yardmaster livery and name. He says working with stainless steel is not something Reid & Harrison had much experience with, so bringing five skilled guys across from ISD was critical. “These guys are real craftsmen.” Among the ISD technical team is Angus McLean who is going to front operations in the South Island for Yardmaster, boosting the brand’s presence in the south – one of many spin-off benefits from this acquisition. Another spin-off benefit is stainless steel contract work in Waikato, which is not well serviced in this regard, according to director Seaton Dalley. They have recently won a major contract with Fon-

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Keith Cooke and Seaton Dalley, Yardmaster with an effluent separator that now complements their range and a new separator (right) added to their product list.

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DAIRY NEWS NOVEMBER 25, 2014

30 //  EFFLUENT & WATER MANAGEMENT

IS COMPLIANCE AN ISSUE ON YOUR FARM?

Treat effluent as fertiliser but apply carefully.

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DAIRY FARM effluent grows in value as fertiliser prices rise, says Waikato Regional Council. In its publication ‘Effluent management; for the health of our waterways and groundwater’, the council urges farmers to treat effluent as a fertiliser, but carefully because it lacks balance, being very high in potassium. “This can lead to higher leaching levels of magnesium and subsequent animal health problems if potassium soil test levels are high. 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 nec-

low rate of application low maintenance

essary for the health of waterways and groundwater, so knowing the regional council’s rules for effluent management is important. Under the Waikato Regional Plan farmers cannot exceed 25mm per application and 150kg of nitrogen from effluent per hectare per year. “So you need to know how much your irrigator is applying and how concentrated your effluent is,” the council says. Dairy effluent must not discharge into surface water or contaminate groundwater. Farms able to store effluent before it is applied to land means effluent doesn’t have to be applied during wet periods when the risk of surface ponding and run-off is high. This substantially reduces the risk of overflows to surface water and plant nutrient uptake is maximised.

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EFFLUENT STORAGE facilities should be correctly sized for a farm’s systems and management, and they should be sealed. Having adequate storage allows a farm to: ■■ Defer irrigation in wet weather ■■

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Irrigate when plant uptake is maximised

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Irrigate in dry weather

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Store effluent during mechanical breakdown

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Endure less stress during busy times, e.g. calving.

Increasing a farm’s effluent area allows the farmer to: ■■ Spread nutrients further, reducing fertiliser requirements and associated costs ■■

Slow the build-up of potassium in effluent paddocks which can lead to animal health problems in the early spring

■■

Have more flexibility in grazing between effluent applications and safer withholding periods prior to grazing.

DAIRY NEWS NOVEMBER 25, 2014

EFFLUENT & WATER MANAGEMENT  // 31 Numedic’s horizontal effluent pump.

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DAIRY NEWS NOVEMBER 25, 2014

32 //  EFFLUENT & WATER MANAGEMENT

Water consent application deadline looms

Waikato farmers have until December 24 to apply for shed water-take consents.

ABOUT 90% of Waikato’s 2600 dairy farmers have lodged dairy shed water-take consent applications. The Waikato Regional Council is urging the remainder to apply before the December 24 deadline. Under the council’s Variation 6 rules, dairy farmers can still take up to 15m3 per day from bores or waterways for dairy shed use, subject to water availability, but need a consent is needed to take more. Though they must apply for a consent, farmers are assured of ‘grandparented’ access to the level above 15m3

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per day they were using at October 2008 provided they meet the deadline for applications. Those who don’t meet the deadline can’t be guaranteed access to the ‘grandparent’ rules. The council campaigned to educate farmers; DairyNZ, dairy companies and Federated Farmers were supportive. The council says its special group consent processing scheme also encouraged early applications en masse to help keep down processing costs. “We have almost the expected number of applications,” says farm water project manager Amy King. “We urge remaining farmers wanting a grandparented consent at 2008 levels to meet the deadline.” Farmers not covered by the ‘grandparent’ provisions should contact the council to discuss their individual circumstances so they can explore options to gain lawful access to water if they need a consent. The contact number is 0800 800 402. Advice on consenting is also available from dairy companies or by visiting www.waikatoregion.govt.nz/watertakes King says Variation 6 itself was a response to the environmental pressure resulting from increased demand for water. And the new National Policy Statement for Freshwater Management also reflects the increased pressure on water resources. King says the need for enough water in the ground or in waterways, to sustain their uses means there is a risk of restrictions on access to water. But farmers with limits to their water may improve water use efficiency, transfer water permits between parties and/or collect and store water at high flow times for use at other times. “We are aware there are farmers who have reduced their water usage in the dairy shed through a variety of efficiency gains which has enabled them to milk more cows but with no increase in their overall shed water needs” says King. “DairyNZ in particular has looked into and provided advice to farmers about such options.”

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DAIRY NEWS NOVEMBER 25, 2014

EFFLUENT & WATER MANAGEMENT  // 33

Efficient water use in dairy shed GETTING THE basics

right on water use requires each farm to manage water resources legally and efficiently, to make best possible use of this valuable and precious resource. For dairy farmers, secure and reliable access to water is an essential to operating a milking shed. In Waikato, home to 4000 dairy farmers, many also need a consent to legally take this water. The Waikato Regional Council rule framework under which farmers need this consent was confirmed in the wellpublicised ‘Variation 6’ process. Setting these rules involved public and stakeholder participation, and ultimately the Environment Court. Out of this came ‘the rules’ aimed at striking a balance between managing the adverse effects of too much ground- and surfacewater use, and enabling people to use water in an environmentally sustainable way. Variation 6 ultimately acknowledged that many dairy farmers were using water in the shed but did not have the required resource consent from the council, and that they needed consent to use more than 15m3 per day for this purpose. Consents will also be needed for lower takes in particular circumstances. Special rules were included which guaranteed that a water consent would be granted to any dairy farmer for the amount they were taking prior to October 15, 2008. These are generally referred to as ‘grandparented’ water takes. About 3500 consent applications are expected. To take advantage of this grandparented allowance, farmers must apply for consent by January 1, 2015, or risk missing out if they miss the deadline. They must also remember that if they don’t have the necessary consents for their water take they face a follow-up from the council. To help avoid such

risks, the council is making the consenting process as easy as possible through a ‘catchment group processing’ approach to receiving and processing the thousands of applications expected. This is designed to streamline things and keep costs down for farmers. More detail on this grouped catchment process is available at www. waikatoregion.govt.nz/ watertakes or on Waikato Regional Council’s freephone 0800 800 402. A key detail is that, in the absence of widespread water use records, assessments of entitlement will be based on herd size prior to October 2008 and a figure of 70L/cow/day. Meanwhile, as the actual consent granted will be based on water volume not cow numbers, there is an opportunity for smart operators, whenever they started their business, to make more profit by being more efficient. For example, a farmer with a consent for 21m3 could milk up to 300 cows on 70L/cow/day. If he improves water use efficiency to 60L/cow, he could milk 350 cows with the same volume of water. But if cow numbers have increased since 2008, or conversions to dairying have happened since then, the water needed to maintain current operations may not be available. If farmers anticipate any problems, they must start thinking outside the square now and talk to the likes of DairyNZ, their milk company or the regional council. Many farmers are taking the opportunity under Variation 6 to think about managing their water use more efficiently, to benefit their pockets and the environment. Potential exists for farms to share water resources under Variation 6. Transfers of allocation rights are possible, though they need to be assessed on a case-by-case basis for potential environmental effects. It may also be possible to store water not needed immediately, for use at a time of maximum advantage, or it may be transferred to another user. These options can be discussed with the council

or DairyNZ. Another efficiency tool is water metering which can, for example, help detect leaks and save energy. Other simple and efficient ways to reduce water use include: ■■ Making sure the flow rate on the milk cooler

■■

■■

■■

is right, and recycling cooler water for shed wash down Using a scraper or a chain to scrape the yard before washdown Making sure hoses have efficient nozzles and/ or reducing the number of hoses Putting a timer on the

Use water wisely in the milking shed.

yard washdown pump www.waikatoregion. govt.nz/watertakes

• Amy King is leader, farm water consents, Waikato Regional Council. Electra Kalaugher is environmental farming systems advisor. • This article first appeared in Getting the Basics Right 2014.

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DAIRY NEWS NOVEMBER 25, 2014

34 //  EFFLUENT & WATER MANAGEMENT

HDPE liner keeps leaks at bay ONFARM EFFLUENT

systems must comply with council regulations and safeguard the environment, says pond liner supplier Viking Containment (formerly Skellerup). A reliable liner for containing dairy effluent depends on pond system design, material selection and quality installation, the company says. Swannanoa, North Canterbury dairy farmer Brian Tinomana commissioned Viking Containment to supply and install the liner for his new dairy effluent pond. The liner material selected was Agrishield 1.5mm high density polyethylene (HDPE) geo-

membrane; it is extremely tough, durable and compatible with animal fats. The 1.5mm HDPE liner at 1 x 10-14 also exceeds resource consent permeability requirements of 1 x 10-9 m/s. Thus it prevents effluent leaking and contaminating the environment. 1.5mm HDPE has a long history of proven performance and reliability and is often specified for wastewater applications for council and large civil applications. Safety also features prominently on Tinomana’s farm. Because the side slope surface of a lined pond is very slippery, especially when wet,

Geoladders were installed to allow safe access for emergency evacuation of the pond, and they can be used during maintenance, when servicing pumps or control equipment. The Geoladder has a colour coded depth indicator which relates to the DairyNZ pond calculator volume gauge. Says Viking, “Before commencing the liner installation it was important that the subgrade surface and compaction met the specification. The pond design and earthworks construction was completed by Worthington Contracting Ltd. A protection geotextile between the liner and the

A reliable liner prevents leaks and contamination.

Geoladders being constructed in the pond.

sub-grade was also utilised to cushion the liner.” For liner installation and testing the

same exacting standards required for municipal wastewater treatment ponds also apply to dairy

effluent applications. Liner installation undergoes comprehensive quality control and assurance including subgrade acceptance, manufacturer’s material data, panel layout, liner deployment, seaming, testing and warranty information. To collate and record all the results and data, Viking has gone ‘paperless’ and developed a new electronic quality assurance system for geosynthetic liner installations. Quality assurance and health and safety data are recorded in real time in

the field on a tablet, ensuring accuracy and complete capture of data. The program is structured to cover all steps of the installation with key elements that must be completed before progressing to the next section. This ensures the required data is recorded and that the project meets the specification. And it enabled the company to promptly present the farmer with a complete QA report at the end of the project, which was used for compliance. Tel. 0800 454 646 www.containment.co.nz

James Green is ‘Absolutely Rapt’ with his Abbey Slurry tanker,

and he’s spreading the news! Taranaki agricultural contractor James Green is “absolutely rapt” with the Abbey 2500R Slurry Tanker that is about to complete its first full season in his fleet. “The quality is right up there. It is a strong, wellbuilt machine and is extremely reliable. This is the first year I have run it for a whole season, and I haven’t had to do a thing to it.” James’ company Campbell and Green Contracting provides a full range of agricultural services in the Taranaki region. He says effluent management is a growing part of the business given the need for dairy farmers to meet tightening regulations around effluent storage and disposal.

“I got into effluent spreading around three years ago, but hired a tanker in the first year to make sure it was something I wanted to continue with. Now it’s a big part of the business. We do a lot of pond emptying and effluent spreading onto pasture paddocks, and are particularly busy around cropping time, spreading slurry onto cultivated paddocks when the maize and turnips are going in.” At the beginning of 2013 James started “shopping around” for a new slurry tanker, and settled on the Abbey after researching numerous makes and models.

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“A friend of mine works at Power Farming Taranaki, and he recommended I take a look at the Abbey brand. After reading some information I became highly interested, so he organised a meeting with the guys at Farmgard to discuss the best options for my operation.” After discussing the finer points of the Abbey Recess Tanker range with Farmgard, James decided on the single axle 2500R, with 11,350 litre capacity, six inch autofill and six inch turbofill. “I was a bit unsure at the start about having a big wheeled machine with recessed axle but now I’m extremely happy with it.” James had seriously considered buying a 10,000 litre tandem axle machine from another brand before deciding on the Abbey, but says a recent “Big job”, where his Abbey worked alongside two of these other machines in wet conditions proved he had made the right decision

“The double axle on these machines was like a big boat anchor and they seemed to spend more time getting stuck and having to be pulled out by a tractor and chain than they did working. We were able to drive straight in behind with the Abbey, load up and drive back out under our own steam, all day. ”James says the Abbey’s ability to work under any conditions is a big plus. “It doesn’t make a mess in wet ground and is extremely stable on the hills. The Abbey tanker also travels well on the roads whether it is full or empty and doesn’t bounce around.” A filling speed of just over three minutes depending on the thickness of the slurry is another positive that makes the process, “faster, easier and more cost effective for the client”. The Abbey Recess Tanker Range comes in five different options from 7,000 up to 13,500 litres. Along with the standard Abbey specifications in the barrel construction, the recess range has some class-leading qualities, including full length chassis construction; a weight-sensing sprung drawbar, anti-movement internal baffles, and more. James says he would have no hesitation recommending a machine from the Abbey Recess Slurry Tanker range to other contractors or farmers. “I’m rapt with it and with the big increase in effluent work definitely plan to buy another one in the next couple of years, hopefully sooner.”

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For more information call Farmgard on 09 275 5555 or 03 437 9000 or visit their website: www.farmgard.co.nz

DAIRY NEWS NOVEMBER 25, 2014

36 //  EFFLUENT & WATER MANAGEMENT

Dilute, well-mixed dung, urine and STUART REID

DARE I say it? If you are aged 29 or over you can stop reading this message (about effluent) right now, because you’ll either know it all, or have made up your mind about it and be inflexible in your thinking. Younger minds when reading this will get an inkling of the underlying message and start to see the light. Here’s the message: dilute, well-mixed dung, urine and wash water applied to pasture at the right time (and in the right quantity) is very good for the farm. It grows grass. Grass produces milk. Pasture becomes more fertile and soil condition improves. The effluent stays in the root zone on your farm and if it’s on your farm it’s not caus-

ing trouble elsewhere. The “water effect” itself (from collected rainwater and wash water) has a payback effect and the added nutrient reduces up the payback period. These are the essential reasons for you ‘do effluent’ properly. Another important factor is to design a way to apply the good stuff with least labour, with no (or few) solids spreading chores and of course low capital cost. (Although if spending capital is going to make the job easier and more foolproof, then go that extra distance to create a simpler, more reliable and safer system.) So here’s the challenge: You are going to store effluent, so that you do not waste it by trying to apply it in the wet season when the pasture doesn’t need it and when irrigating

effluent in the wet means it will simply get washed into streams and drains. You are going to thoroughly mix the wash water, manure and collected rainwater that falls on the yards and the pond before you send it to the irrigator. This prevents your irrigating a ‘thin’ mixture initially which ‘thickens up’ as the pond level falls. You want the pasture to receive the same concentration of nutrient and water over all the irrigated paddocks. You are going to spread the effluent evenly – to get the best value -- at the right time and in amounts appropriate to the soil moisture levels, while grass is growing. You are going to put in place controls that allow monitoring which prevents the waste of water and nutrients; which pro-

tects pumps, pipelines and hydrants from damage, and which prevents ponding and unwanted discharges in the paddock. This is a broad outline of what your effluent irrigation system should achieve. The next section gets down and dirty. Forgive me for having to drive the message home, but I want you to understand it. It would not surprise me to find that you’ve bought the effluent pump first and now you’ll create your effluent scheme around that. Right? I hope not. You’re starting at the wrong end of the process, and yes, there is a process. The starting point of the design process is reviewing your point of view. Do you want to keep this effluent on your land (for your advantage) or are you happy enough to see it slide off your prop-

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Stuart Reid

and nutrient, the potential for irrigated liquid to run off the land, and the style of irrigator that best fits the soil and your operations. And you should even consider neighbours and the houses of farm staff. Notice that we haven’t yet got to even deciding on effluent storage or pump size. To sum up this section, let’s just say we are focused on the irrigation zones and the irrigation means. Notice that we should not apply effluent when the soil is wet and has no capacity to soak up and retain it. There is a wet and busy season at the time of calving, and if you irrigate effluent at this time it is bound to run off your land taking the nutrients with it. So if you shouldn’t irri-

gate in the wet, then you will have to store the stuff until the day arrives when the soil can happily hold the effluent. This is where we have another review of your view. A small storage pond will usually mean that irrigation will have to be fitted in more frequently and carried out onto soils with smaller moisture deficits. You will probably have to apply small amounts of effluent over larger areas whenever there is a small soil water deficit. Of course this may also be at a cold time of the year, so that while you park the effluent in the soil satisfactorily to retain it, it may not be the best time to assist plant growth. Your irrigation equipment must also be able to

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erty (to your disadvantage and loss)? Furthermore, do you want it to grow grass, or do you just want to dispose of it on your paddocks and hope the applied concentration doesn’t smother pasture and choke essential soil organisms? As you find answers to these questions you will see that you have already begun the decision-making design process. Let’s assume you’re a reasonably able farmer who acknowledges that plants need water and nutrient and like it dished up to them as a dilute consistent mixture at the right time in their growth cycle. You’ll also acknowledge you want the benefits of the proper use of effluent but you don’t want the application process to be fiddly and laborious. You might be prepared to invest capital to reduce the continuous annual chore factor. Finally, let’s assume you realise that if effluent stays on your property doing ‘good’, then it’s not going somewhere else doing ‘bad’. These decisions lay the foundation for the new system or an upgrade of the old one. The next step is choose the area of the farm where you irrigate this stuff. You’ll need to decide on the required area, the soil type, when in the season the soil is ready for liquid

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EFFLUENT & WATER MANAGEMENT  // 37

d water work well apply these small amounts of liquid. If storage capacity is larger, you can usually wait until soil water deficits are greater; the grass is more actively growing and the effluent can be applied in larger quantities. In this case irrigation takes place at a “cruisier” time of the year, and the growth benefits are more obvious. So when we summarise this part we conclude that smaller storage means applying smaller amounts more frequently earlier in the season. Larger storage means you can apply larger amounts later during the growing phase of the season. There is a range of choices between these extremes, but the most important determinants are the irrigation zones and the irrigation equipment you want to use. Small nozzles may be needed for the smaller ponds and more frequent irrigation onto damper soils; larger nozzles and application amounts will probably suit larger ponds and dryer soils. By now we are ready to ascertain the size of your storage pond and the pumping plant and we can also begin to size pipelines and draw the irrigation plan. From now on it is just straightforward engineering design where we go through all the steps. However, there is still a lot of blindness out there: don’t close your eyes to the problems that arise from solids, sludges, solids spreading and unnecessary chores. You may forget that sludges and solids in the effluent have to be dealt with either by separating them from the mix in separators which

can be active (mechanical) or passive (weeping walls, wedgewire screens). Separation is really only needed if irrigation nozzles are small. Larger nozzles on the irrigator mean you can apply all the liquids and solids together via the irrigator. This avoids having to spread solids later. While we are on the subject, I have to mention what I perceive to be ‘the attitude’ problem. You members of the older generation want to carry on farming as you always did and often resent change. You have probably forgotten that change has sneaked into your methods without you noticing. Look at the electronics in your car (engine management, stability control, automatic braking systems, transverse engines, turbochargers) and also in your farm operations (instant tanker printouts of milk receipts, automatic vacuum pump control, electronic cup remover, electronic herd testing and mastitis detection, temperature control, vat washing, your farm computer.) So why, when you deal with 50,000L of yard wash water each day, do you wince when someone suggests automatic control to remove the chore of distributing this stuff? Or when they suggest that the electronics will protect equipment from glitches and protect you from fines? There is good value in these devices but I often see farmers trying to save money at the wrong end of the process for the wrong reasons. You have a choice: a simpleto-operate system with good controls that make the job easy and painless, or a system where you are

always on tenterhooks waiting for some sort of failure. So here’s the message again: dilute farm dairy effluent is good when it is kept on your farm, in the root zone, to grow grass. A good system will have a financial payback period,

and the peace of mind factors of a good system will have a value well beyond payback. • Stuart Reid is managing director of Spitfire Irrigation. • This article first appeared in Getting the Basics Right 2014 issue.

Effluent helps grow grass and grass helps produce more milk.

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DAIRY NEWS NOVEMBER 25, 2014

38 //  EFFLUENT & WATER MANAGEMENT

Future-proof your system MURRAY MCEWAN

NEW ZEALAND farm-

ers face constant pressure to minimise their impact on the environment and to reuse, recycle and take responsibility for their

farming ‘footprint’. This is an area of farm management increasingly in the compliance spotlight. Sustainable management practices play a key role; particularly maximising the return from

effluent. Three key components are: ■■ reducing fresh water use in the dairy shed ■■ keeping appropriate amounts of nutrients within the root zone of pasture ■■ keeping nutrients away

from waterways and water tables. But there’s a bunch of considerations when it comes to the performance of your effluent management system. Making sure it’s designed for the best outcome for your farm

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now and in future is one of the most important. For example, not all dairy farmers separate effluent solids and liquids. This can have a significant impact on how you then store, distribute and apply effluent on your farm. Separating has the potential to reduce fresh water use by recycling liquid for yard or pad wash down. It can also provide another source of organic matter and nutrients, beyond the designated effluent application area, that has already been paid for, and is highly valuable to your farm. Getting back to basics Let’s get back to basics and briefly overview the effluent management system. Catchment Catchment is the where and how much part of your effluent equation - in the cow shed, on the dairy yard, feed pad and silage stacks. The quantity of effluent from each catchment will depend on fac-

tors such as rainfall, water diversion, stock numbers and time spent in the area. Processing This is where the separation of liquids and solids occurs before the effluent enters your pond. Waste is made up of water, manure and grass fibre (organic matter) and inorganic matter such as light and heavy contaminants, including animal hair, silage, palm kernel, sand, stones and rubbish etc. Storage and distribution All the contaminants of effluent should be removed before large volume storage. Your pond sizing and type, and pump size, type and performance fall into this category. These are basically determined by: ■■ the size of your farm ■■ herd size and farm management ■■ the region and its environment ■■ whether solids and liquids have been separated

the area to which effluent is applied ■■ effluent application method. Application This is the method of applying effluent to the farm such as travelling irrigators, pump and carry methods or low application methods. Written in a list like this, it’s easy to assume effluent management is a linear process – and that catchment, first on the list, must also be the most important factor. But that’s not the case at all. How you apply effluent determines many of the other decisions about the design of your effluent system, and each part of the system impacts on the performance of the others. Effluent system design Effluent management is increasingly under the compliance spotlight. Regulations from regional councils vary and in some areas district councils also have rules that need to be checked. ■■

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EFFLUENT & WATER MANAGEMENT  // 39

m for high returns Irrigation NZ, NZ Milking and Pumping Trade Association and DairyNZ recently launched an Effluent System Design Accreditation programme to make sure service companies are working to a code of practices and standards. The goal is to ensure all New Zealand dairy farmers have systems that can achieve dairy industry and wider community expectations for the land application of dairy effluent. It is concerned with keeping all untreated effluent out of surface and groundwater; keeping land applied effluent nutrients in the root zone to capture their nutrient and economic value; and ensuring all systems are compliant 365 days a year. Only a group of companies in New Zealand have achieved accreditation, including GEA Farm Technologies. This programme signals the direction in which the industry is moving and the importance of viewing your effluent management system as one rather than separate processes. It is increasingly important to ensure you get the best advice from an accredited company that understands the industry’s standards and how to meet them when developing or changing your effluent system. Accredited companies have been put through their paces, and will consider a broad range of factors when assessing and designing effluent management requirements including land typography, soil types, nutrient status, farming systems and water use. Separation There are valuable benefits from separating solids from liquids in effluent, such as improving effluent application and storage in a number of ways. The liquid component contains only miniscule particles which can improve the efficiency of your pumps. This means you can pump the liquid further to extend your coverage area and there’s less risk of pumps, pipes and irrigators becoming blocked. You can extend nutri-

ents beyond the existing pump area by carrying solid organic matter to other parts of the farm that your pump doesn’t reach. You can create cost efficiencies by using the solid matter on areas where you would otherwise apply a purchased fertiliser. Pond management is improved with less solid settling and surface crusting. Reducing fresh water use Separation creates a source of recycled water, reducing dairy shed fresh water use by at least 50%. In some regions this can keep fresh water usage below levels where consents might otherwise be required. For example, the liquid from some separators can be recycled and used to wash down the yard, particularly if your separator has been tested for the small particulate size left in the resulting liquid (the amount and size of solids left after the separation process). The Houle slope screen separator has been used and tested for more than 30 years. It is proven to leave only miniscule particles in the liquid effluent – making it a great substitute for fresh water when washing yards. Results achieved from some farms using this practice have been impressive – with one large farm we know of reducing its fresh water use from 70 litres per cow per day to <30 litres per cow per day. What makes a good separator? There are two types of separators: mechanical and passive. Farmers need to be aware of all the pitfalls and benefits of any separation system. Some are expensive to maintain in dollars and time. Some are complicated, require power and need servicing by tradespeople. Some don’t actually perform as they were sold. Passive separators don’t require a power supply, have a relatively low maintenance cost and are easy to maintain considering the high rates of effluent they process. No ‘moving parts’ also means minimal wear and tear. It is recommended to

get advice from a company accredited in effluent system design and backed by extensive local industry experience and comprehensive support. Today, simply selling a pump and burying a pipeline is no longer servicing the farmer or industry to an acceptable level -

let alone into the future. There is no such thing as an acceptable short cut. Most importantly, consider any compliance the minimum standard and exceed it. Future proofing the design of your effluent management system will deliver a range of benefits to your farming busi-

ness now and in future – economically, environmentally and in practical, everyday efficiencies. • Murray McEwan is the Houle Solutions and field services technician for GEA Farm Technologies • This article first appeared in Getting the Basics Right 2014 issue.

Make sure your effluent system is designed for the best outcome for your farm.

DAIRY NEWS NOVEMBER 25, 2014

40 //  EFFLUENT & WATER MANAGEMENT

Sustainability; the capacity to endure DARREN SUTTON

IN ECOLOGY, the word

sustainability describes how biological systems remain diverse and productive over time; it requires the reconciliation of environmental, social equity and economic demands, also referred to as the three ‘pillars’ of sustainability, or the three ‘Es’. In other words, it means the capacity to endure, and that’s relevant for all New Zealand dairy farmers, as we all have a responsibility to ensure milk production is sustainable. As the world’s population continues to rise, as does the demand for agri-

culture and safe food, sustainability has never been more important. There is now much closer scrutiny on farmers to show that the use of resources (land and water) is done in a sustainable way, as communities around the country watch and question whether we are doing everything we can to protect the environment for future generations. Most farmers see themselves as custodians of the land, but are also well aware of the need to maintain profitability at the same time; so a careful balance is required, particularly when it comes to nutrient management and water use. Water

The National Water Policy statement (2011) directs all regional councils to ensure water quality is maintained or improved and to manage catchments that are currently overallocated in water use. Different regional councils are tackling this in different ways, but previously water that was often taken as being a ‘right’ is now being measured to ensure that over-allocation does not continue and processes are in place to decide who gets the water within a catchment and how much. This is being worked out by: ■■ Consent and application processes for new dairy conversions ■■ Re-assessment of cur-

rent dairy farms water use in over allocated catchments ■■ Requirement for water plans and metering of water use on-farm. Water quality within the dairy sector is set out in the ‘Sustainable Dairying: Water Accord’ 2013 which aims to “enhance the overall performance of dairy farming as it affects freshwater by committing to good management practices of all dairy farmers in NZ.” This is worked out through: ■■ Fencing of all waterways and protection of significant wetlands ■■ Riparian planting along water ways to catch nutrient run-off ■■ Better application of

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All New Zealand farmers have a responsibility to help keep waterways clean and safe.

effluent and fertilisers Research into best management practices of winter grazing and crop management. Nutrient management Nutrient management is directly related to water quality as it is the escaping of key nutrients such as nitrogen (N) and phosphorus (P) that leads to reduced water quality. N and P attributes to the growth of algae and other water living plants that can affect drinking water quality and safety for recreational use. ■■

Nitrate in drinking water is also a major health hazard, and the Ministry of Health drinking water standards (1998) set the maximum acceptable level of nitrate in drinking water as 11.3ppm. The ‘Sustainable Dairying: Water Accord’ has also set targets to better manage nutrients on dairy farms. Dairy companies have signed up to this accord and will start working with farmers by: ■■ Modelling N loss and N conversion efficiency ■■ Provide N loss and N

conversion efficiency performance information back to farmers ■■ Engage with regional councils to reduce nutrient losses where losses are deemed to be too high ■■ Engage in catchment programs that improve good management practises on farm • Darren Sutton is LIC FarmWise consultant, Waikato. This article first appeared in Getting the Basics Right 2014 edition. @dairy_news facebook.com/dairynews

DAIRY NEWS NOVEMBER 25, 2014

EFFLUENT & WATER MANAGEMENT  // 41

Helping farmers get ready for changes CANTERBURY WILL

host two EnviroReady field days this week to help farmers prepare for changes under Environment Canterbury’s Land and Water Regional Plan. The field days, at Hinds (Nov 25) and Dunsandel (Nov 27) will help farmers identify and manage environmental risks, and improve their management practices. DairyNZ catchment spokesman Tony Fransen says the aim is to help farmers make systems changes that ensure their farms meet regulations. “Farmers will receive practical solutions to take home and implement on their farm.” Sessions will cover nutrient management, research and development, soils, effluent and irrigation, and land man-

agement. The nutrient management session will focus on the nutrient budget as a tool for understanding nitrogen movement through a farm system and the key drivers for nutrient loss. Options to reduce nutrient loss and the financial implications of changing systems will be covered by DairyNZ scientist Dawn Dally during the research and development session. Paddock sessions will include understanding soil type and moisture levels, managing effluent and irrigator systems efficiently, the benefits of onfarm planting, waste management and identifying highrisk areas onfarm. Certified professionals will be available on the day to provide one-on-one

GET READY FOR ENVIROREADY Registration is not required and a barbecue lunch will be provided. Hinds ■■ Tuesday, November 25 ■■

9.30am-2pm

■■

Golden Dairies, 104 Winslow Willowby Rd, SN 2252

Dunsandel Thursday, November 27

■■ ■■

9.30am-2pm

■■

Synlait farms – Tapatoru, 250 Waikimihia Rd, SN 1104

IN BRIEF Water watch online BALLANCE AGRI-NUTRIENTS has joined forces with NIWA to bring hi-resolution weather, climate and environmental forecasts to farmers via the co-operative’s Ag Hub online farm management system. Announcing the partnership, Ballance general manager aginformation Graeme Martin says farm profitability and sustainability are increasingly affected by variable weather patterns, growing conditions and the availability of water. “Farmers are looking for the best possible support to make operational decisions. NIWA’s advanced forecasting systems and its national climate station network are at the leading edge of weather and environmental information. “Our agreement with NIWA enables us to put the best weather, climate and environmental information in front of farmers through our FarmMet forecast package. The power lies in coupling this with our Ag Hub farm information systems, providing a rich source of data available for farmers to tap into and use to make the most profitable and sustainable decisions for their operations.”

advice to farmers. These will include effluent and irrigation designers from accredited companies, effluent WOF assessors, nutrient management advisors, soil specialists, native plant suppliers and

recycling depot representatives. A list of staff training courses will also be available. DairyNZ’s sustainable milk plan has been approved by Environment Canterbury.

DAIRY NEWS NOVEMBER 25, 2014

42 //  MACHINERY & PRODUCTS

More wheels for rural helpers VOLKSWAGEN NEW

Zealand has further thrown its support behind the IHC Calf & Rural Scheme. The sponsorship, started in late 2011, will run for three more years. Volkswagen will supply two new Amarok utes for scheme staff to use in attending calf sales and visiting farmers and truckers. Volkswagen and IHC

have a long-standing deal: IHC uses Volkswagen Caddy and Transporters in its work in communities. The IHC Calf & Rural Scheme involves farmers and PGG Wrightson in raising funds for New Zealanders with intellectual disabilities. Launched in 1984, the scheme encourages farmers to donate a weaned farm animal to be sold, the proceeds going to IHC.

At least 5500 calves are donated annually, raising about $1.5m. This year IHC is celebrating 30 years of the scheme, says IHC national fundraising manager Adele Blackwood. “Generous support… means we can help people with intellectual disabilities through… a wide variety of initiatives – free information and resources through our library; help

The IHC Calf & Rural Scheme raises funds for people with intellectual disabilities.

with education, health and legal rights through our advocacy team; and coordinating friendships and skill based-learning through our volunteer programme.” Tom Ruddenklau, Volk-

Amorok utes to visit rural areas will be used by staff.

swagen general manager, says, “Our support of the IHC Calf & Rural Scheme helps us give back to the rural community and supplying two Amarok utes for the team helps them get out and about.”

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DAIRY NEWS NOVEMBER 25, 2014

MACHINERY & PRODUCTS  // 43

Key Euro award for tractor THE CASE IH Magnum 380 CVT tractor has won Tractor of the Year at EIMA International in Bologna, Italy, as judged by 23 expert journalists from European trade publications. Case IH says the Magnum 380 CVT won the title thanks to features such as continuously variable transmission (known as CVX in Europe), multicontroller armrest, new LED lighting and its Rowtrac combination of rear tracks and low pressure front tyres. This gives greater traction with min-

imal soil disturbance compared to standard single-track machines. “We are honoured to have received the Tractor of the Year 2015 award,” said Matthew Foster, vice president Case IH EMEA (Europe, Africa and the Middle East) at the awards ceremony. “27 years of Magnum tractors means 27 years of approval by the toughest group of testers you can get: farmers in their daily work.” Launched in 1987, the Magnum has had many improvements to increase performance and produc-

tivity, cut fuel consumption and emissions and improve operator comfort. Case IH is imported in New Zealand by C B Nor-

wood Distributors Ltd. Tel. 0800 CASE IH www.caseih.co.nz Case IH Magnum 380.

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Volvo unveils sports wagon VOLVO CARS last week unveiled a cross-country version of its V60 sports wagon at the 2014 LA Motor Show. It will go on sale in New Zealand in the second half of 2015. “Cross country variants have been hugely successful for us in New Zealand,” says Steve Kenchington, general manager of Volvo Cars New Zealand. “The V40 Cross Country accounted for half of all V40 sales since it was introduced last year, and the XC70 has become an icon since it opened up the cross over wagon segment in 1997.” The company says its Cross Country brand has a “long and distinguished heritage”. “Volvo Cars was the first premium brand to offer increased all-road capability and styling on its wagons as far back as 1997 when it introduced the V70 Cross Country, creating a whole new type of car experience that has since captured the imagination of the motoring public and industry,” says Kenchington. “Reflecting Volvo’s Scandinavian heritage and love of nature and adventure, the V60 Cross Country brings together the best of both worlds – a sporty, connected, yet comfortable driving experience with the freedom to explore new horizons. “With increased ground clearance of 65mm compared to the current V60, the Cross Country’s construction offers unparalleled control on and off the beaten track, coupled with an enhanced sporty driving experience thanks to torque vectoring technology and corner traction control.” Canter Tipper FEA55T1 Advert_280x187_3.0.indd 3

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DAIRY NEWS NOVEMBER 25, 2014

44 //  MACHINERY & PRODUCTS

Cheers to 40 years of round balers FORTY YEARS of

making its Roll-Belt balers, and sales of 235,000 machines, is prompting manufacturer New Holland to affix a ’40-year’ decal to a new variant of this globally popular machine, the company says. The latest generation Roll-Belt is said to “redefine” round baling, with technology that can improve capacity by 20% and density by 5%. New Holland introduced the Roll-Belt variable chamber baler series

in 2013, with customised feeding systems like the SuperFeed and CropCutter rotor options. The new ActiveSweep crop processing solution also offers “tailored” baling. Now new Roll-Belt variable-chamber round balers are replacing the BR7000 series, with 20% greater capacity. Many features will enhance productivity, the company says. “The Roll-Belt baler enables operations to specify the baler that suits their needs,” says Greg Moore, New Holland hay and harvest product specialist. “The standard rotor SuperFeed and professional CropCutter variants enable tailored baling. “The all new pick-up, dual density system and

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endless belt design will deliver significant productivity gains.” The pick-up is redesigned to boost capacity by up to 20% in silage. Buyers can choose between 1.8m and 2m configurations. The standard heavy-duty, five solid tine bar pick-up with reinforced rubber tines – 10% stiffer laterally and lasting five times longer – maintain pick-up performance in difficult, uneven and stony terrain, says the maker. The new standard feedassist roll transfers the crop from the pick-up to the rotor while simultaneously merging the flow of the crop to ensure it matches the exact width of the bale chamber. The folding castoring gauge wheels make changing from transport to field configuration simpler. The wheels swing up and round, and are locked

in the transport position without having to be removed. The SuperFeed standard 455mm rotor, with New Holland’s ‘W’ pattern fingers, maintains high throughput of all crops. The CropCutter variant delivers the densest bales, with 15 integrated knives for fine chopping. The maker’s DropFloor function is designed as a time-saver to be operated from the cab. When large wedges of crop block the rotor, the floor is lowered

New Holland crop cutter.

to provide more space in the feeding zone and baling can continue. The Roll-Belt baler has four 273mm wide belts which prevent losses and improve tracking performance. The increased belt stability ensures a large contact area with the crop to improve reliability and bale formation. Endless belt technology ensures the

belts are strong as there are no joints. This eliminates stretching for uniform bale formation. And the belts’ texture makes cleaning easier.

New Holland is imported in New Zealand by C B Norwood Distributors Ltd. Tel. 06 356 4920 www.newholland.co.nz

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DAIRY NEWS NOVEMBER 25, 2014

MACHINERY & PRODUCTS  // 45

Off to the south pole – again is at it again: its 2014 Antarctica2 mission will bring back memories of Sir Ed Hillary’s 1958 trek to the south pole using ‘Fergie’ TE20 tractors. This month, 56 years since the launch of the Massey Ferguson brand, an MF 5610 tractor (110hp) will make a similar trek. The 5000km return journey will begin at Novo Base late November and reach the geographical south pole about mid December. The aim is to highlight the need for technologies and services to enable farmers to produce more food. During its few weeks on the ice the MF 5610 will clock up as many hours operation as an average year’s work on many farms. Also supporting Antarctica2 are Trelleborg, Castrol, AGCO Finance, AGCO Parts and Fuse Technologies. “Antarctica2 is a bold and exciting mission full of exceptional challenges and we are proud to be part of it,” says Warwick McCormick, vice president and managing director for AGCO-Massey Ferguson. “It reflects the spirit of our brand and our desire to achieve, no

matter how difficult or demanding the path.” The MF 5610 has been prepared by Massey Ferguson at AGCO’s Beauvais tractor plant in France. Expedition ambassador and lead driver is Manon Ossevoort – ‘Tractor Girl’ – who once drove a tractor from her childhood home in the Netherlands to South Africa. Also in the party are seasoned polar explorers Matty McNair (lead guide) and her daughter Sarah McNair-Landry (guide and audio-visual support), Nicolas Bachelet (lead mechanic) and Simon Foster (creative director and audio-visual lead). Expedition specialists Arctic Trucks will provide guidance and safety support. “It was my dream to drive a tractor to the end of the world, and I was inspired by Sir Edmund Hillary’s mission,” Manon says. “My journey has inspired other people to talk about their dreams, so I set about collecting these dreams with the goal of taking them to the South Pole.” The MF 5610 has been cold weather tested under the supervision of Massey Ferguson engineering project manager Olivier

Hembert. “The polar environment demands the kind of straightforward, dependable engineering for which MF machines

are famous,” he says. “Our tractors regularly work in very low temperatures on farms inside the Arctic Circle, for example.”

Lead driver Manon Ossevoort with a MF5610 during trials in Iceland.

MS1523 - Imported by C B Norwood Distributors Ltd

MASSEY FERGUSON

ICY CHALLENGE TEMPERATURES DOWN to -40oC, altitude of 3400m and deep soft snow will challenge the tractor. Its 3-cylinder engine remains unaltered but the cab, electrics, air intake and filtration are adapted to withstand the freezing conditions. Key partner Trelleborg worked with MF to develop multi-purpose tyres for maximum traction and safety. Tyres are more efficient for this kind of expedition than tracks because they are capable of higher speeds, use less fuel and provide suspension. The tractor will run on Jet A1 fuel. The expedition also calls on AGCO’s parts supply and technical capabilities. Parts will be carried and maintenance done twice daily. The AgCommand telematics system will relay performance data to a 24-hour support team at the tractor factory in Beauvais and enable them to monitor progress across the ice. A special version of AgCommand will allow the engineers to regularly analyse data on fuel consumption, forward speed and oil temperature.

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DAIRY NEWS NOVEMBER 25, 2014

46 //  MACHINERY & PRODUCTS

Massaging liner wins top prize DELAVAL’S CLOVER

milk liner has won a top prize at Euro Tier in Germany. The liner won the DLV innovation of the year award 2015 in the category milking technology. The product exemplifies form following function, the company says. The design ensures the

liner stays in the proper milking position and has a massage effect, ensuring the cow’s comfort without compromising milking performance. As a result teat health improves and mastitis cases are reduced. The DLV innovation of the year awards have ten categories including feeding technology, animal

welfare, software and milking technology. “We are honoured to win this award,” said JeanJacques Dreier, portfolio director liners and tubes at DeLaval. “It is great to be accredited by DLV for… products that enhance animal welfare, reduce costs and increase productivity for our customers.”

The company’s Clover liner 20M suits cows with average teats, the liner 20M-EX suits cows with average teats but wide udders, and the liner 20S-ST is for cows with average-to-short teats. Combining the DeLaval Clover liner with its Harmony cluster is the perfect match to ensure milking

performance and udder health, the company says. DeLaval also won a silver medal in the category for its InService Remote. Criteria for selection included optimising labour management, facilitating work safety and reducing energy costs.

DeLaval’s Clover milk liner has a massage effect.

The system monitors milking solution equipment remotely, ensuring optimal performance and productivity 24/7/365, enabling farmers to manage their dairy operations from their smartphone. “It shows that we’re on the right track with our innovations,” a spokesman said. “[The remote] supports our customers in increasing throughput and yield while keeping udder

health under good control.” EuroTier is said to be the world’s largest innovations marketplace for machinery, installations and farm inputs for professional animal husbandry. There were 270 innovations submitted by 156 exhibitors from 19 countries to the EuroTier organizer. The four-day event attracted 2360 exhibitors from 49 countries.

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Retro-fit tank agitation system to prevent sludge and solids build up for trouble free spreading without constant clearance.

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MS1486 - Imported by C B Norwood Distributors Ltd

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DELAVAL SAYS the Clover liner, launched last year, is milking at least 500 000 cows worldwide. The liner has thin, concave side walls and smooth, rounded corners that deliver a firm, yet gentle grip of the teat throughout the milking cycle, the firm says. “This design ensures the liner stays in the proper milking position and provides excellent massage, offering cows maximum comfort. “Additionally, it provides a low and stable mouthpiece vacuum and avoids the typical clogging and hygiene issues related to the use of air vents on vented liners. As a result teat health improves and mastitis cases are reduced.”

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1. Prioritise pasture, it’s the cheapest form of feed 2. Check soil fertility with soil tests and consider all-paddock testing 3. Protect establishing pasture with an integrated approach (fertiliser, pest/weed control, seeds) 4. Plan early for summer/winter forage Talk to your Ravensdown Agri Manager about the tools to help you get the best out of your pasture or crop. Or call our Customer Centre on 0800 100 123. RAVNOV14-DN2-OPTIMISE

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