Issuu

Prices tipped to firm early next year. PAGE 5

UNITED WE STAND

TAKING CHARGE General is coming PAGE 31

One branding in China PAGE 9

NOVEMBER 24, 2015 ISSUE 347

// www.dairynews.co.nz

‘DON’T PUT OUR CO-OP AT RISK’ Former Fonterra director Mark Townshend hits out at remit to reduce the size of board. PAGE 3

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DAIRY NEWS NOVEMBER 24, 2015

NEWS // 3

Too much risk in remit to downsize SUDESH KISSUN sudeshk@ruralnews.co.nz

Toy tankers bring cash. PG.06

Maize planting down. PG.14

A FORMER Fonterra farmer director is warn-

ing that moves to downsize the co-op’s board is fraught with risk. Mark Townshend, Ngatea, says a strong vote this week for the remit by former directors Colin Armer and Greg Gent could destabilise the co-op. “It could also reignite the whole political stuff around the co-op,” he told Dairy News. Armer, a corporate farmer, and Gent, a company director, have put a remit to this week’s annual meeting in Waitoa, asking shareholders to vote to reduce the size of the board, currently 13 directors -- nine elected and four appointed. Fonterra’s board and the Shareholders Council have rejected the motion. Gent, who chaired Kiwi Co-op before it merged with NZ Dairy Group to form Fonterra, served as deputy chairman for the co-op under Henry van der Heyden. Gent retired from the board in 2011.

When van der Heyden retired in 2012 John Wilson became chairman, beating Armer in a close contest; Armer subsequently resigned from the board. Townshend says while the old Kiwi Co-op/Dairy Group politics has “pretty much broken down”, the Armer/Gent resolution could re-open political divides on different lines. Townshend is voting against the remit but he’s worried it might get sufficient support from farmer shareholders to make a more balanced and communicated governance review proposal over the next months, led by the board and council, difficult to attract the required 75% support. Townshend

CURRENT BOARD IS FARMERS’ DOING

Canterbury A&P Show wrap-up. PG.34

NEWS �� 3-10 OPINION ��12-13 AGRIBUSINESS �� 14 MANAGEMENT ��16 ANIMAL HEALTH ��18-19 EFFLUENT & WATER MANAGEMENT �� 21-30 MACHINERY & PRODUCTS �� 31-34

MARK TOWNSHEND says farmers have only themselves to blame for the current makeup of the Fonterra board. “It’s a bit rich blaming the directors when shareholders themselves voted in the board. Over the last six years shareholders have voted in a new director each year; only one of those had a really good candidate assessment score (under the candidate assessment panel process). If farmers had supported the CAP process recommendation over recent years, only 4 or 5 of the current 9 shareholder Directors would be sitting around the Fonterra board table today.

“We need to look at how we get the right people onto the board; using a beauty contest to reduce the current board from nine to six elected directors is fraught with risk.” “There is no doubt that a board of nine in a perfect world would be better than 13. But what will happen if, of the proposed six shareholder directors, one is so inexperienced they add little value, one is there by past reputation and is just warming a seat, and one is some firebrand voted in by shareholders who will have zero impact around the table if they cannot work as part of a team?”

says he does not think the Armer/Gent resolution has “a hope in hell” of getting 75% support, but even at 40-50%, when proposed at an opportunistic time when farmers are financially hurting, just makes a more thorough and thought through governance review proposal a little harder. “I’m worried they will get more support because people are angry with the company; they would vote for it because they could put one up the company.” Armer and Gent are unhappy with the Mark Townshend performance of the co-op and want a leaner board to change its fortunes. Townshend agrees Fonterra’s financial performance and shareholder relations leave much to be desired. He also agrees that whatever Fonterra comes back with in its governance review, it is likely to have some elements of overlap with the Armer/Gent proposal. “Fonterra looks in a bit of a bind in several ways; it does not have forever to sort it out,” he says. “They are actually spending a lot on pie-day Fridays and putting extra people in jobs to try to communicate, rather than solving the core root of the problem of having a real group of people running supplier relations – both governance and management.” Townshend says the resolution smells of politics despite what Armer and Gent are saying.

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4 // NEWS

Blitz brings energy efficiencies they make dual use of water already heated. Tony Ooston, also a co-op energy manager, says on the boilers at Pahiatua, built last year, and Lichfield, under construction, they have installed high-efficiency economisers that extract every last bit of heat. The economisers are the biggest in New Zealand for the size of the gasfired boilers. That heat extraction also cuts gas consumption. The plant achieves 93% energy efficiency vs 87% in a typical boiler. They are now looking at retro-fit possibilities at other plants, starting with cost-benefits. Longburn, Tuamarina and Culverden are concentrate plants where water is extracted from milk before it is sent to manufacturing plants, thus saving energy in transport. The water is reused. Oosten says the Edendale plant has expanded production, but by raising energy efficiency they haven’t had to increase boiler capacity. “All we’ve had to do is balance the heat load at

PAM TIPA pamelat@ruralnews.co.nz

ENERGY BLITZES

at Fonterra’s 36 sites identified 900 initiatives for energy efficiency, says Fonterra energy manager, Linda Thompson. The ongoing energy programme began in 2003, cutting the co-op’s ‘energy intensity’ by 16.8%, calculated on the gigajoules of energy per tonne of product made, says Thompson. That saving is equivalent to two years’ annual household use by all Wellington houses. The sites are audited against best practice and on the principles of the ISO 5001 standard for energy management, covering, for example, energy consumption, contracts and management. From those blitzes about 900 initiatives were identified, implemented at the sites and ranked from the biggest benefit down. Last season they took a slightly different approach and looked at target plants including Te Awamutu and Te Rapa. At Te Awamutu

“All we’ve had to do is balance the heat load at the site and utilise existing assets.” the site and utilise existing assets.” Mark Leslie, Fonterra director, NZ manufacturing, says there is not one big ‘silver bullet’ for energy efficiency; instead lots of little things stack up. The concentrate sites are one example: concentrated milk requires less fuel to move it. Tuamarina and Culverden are 250km from the nearest plant so it creates energy efficiency. Last year they concentrated milk at Longburn then railed it south across Cook Strait to Clandeboye. Lighting design also raises energy efficiency. Thompson says computer analysis determines the most efficient routes for milk collection; since 2010 they have cut diesel use by 10% per 100km tanker running. The schedules are optimised every 12 hours using a predictive analysis of the volumes produced at each farm. Oosten says 40% of

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the milk is picked up in the three peak months, this season 87 million litres, equating to a farm collection every eight-nine seconds. Leslie says they ship products to China and 146 other countries as energy efficiently as possible. Fonterra has 2500 inspections a year by regulatory authorities and customers, and energy efficiency is an increasingly hot topic.

Young to develop new business models PAM TIPA pamelat@ruralnews.co.nz

FONTERRA IS setting up hubs of entrepreneurial young people to develop new business models, says Fonterra chief executive Theo Spierings. He says even he is too old for the kind of thinking needed: it requires 20-25-year-olds. Three hubs have already been set up in Asia, and he plans another in Auckland via their graduate programme. “You see the entrepreneurial mindsets kicking in big time,” Spierings told Dairy News. “You need to disrupt your own system… If you want to develop a good commerce strategy you need to think differently. “I’m too old; you need young people like my kids, they don’t watch TV, they watch YouTube. They are constantly connected in social media. So it is a completely different world. We have no clue

what it means. “We need these people with brains to develop the business models for the future. If we don’t get these people in, these youngsters with brains from a high level, we cannot follow China because the transformation is going so fast.” Spierings says China does not have a vested interest – as does US or Europe – in massive infrastructure or distributors and retailers. So China can shift from the traditional sales channels to the new sales channels much faster than anybody else. “They can shift the game from here to there and it is scary because it is a 1.4 billion people shift.” Fonterra’s hubs of young people have already been set up in Malaysia, China and Indonesia, reporting to the managing director, Spierings says. He wants another in digital and e-commerce in Auckland via the graduate programme. “We push them to come up with the best possible business models and the best get rewarded. We tell

them you get NZ$5m to invest in the business model and come back in a year and show that it works. These are peanut investments but you can get huge results.” Earlier he told a China Business Summit in Auckland these groups of 20-25-year-olds are like Dragon’s Den – a television programme where people with a business idea pitch to potential investors. He said in his previous company in 2008 they used the same approach for a baby food brand. The successful model got 10m euros to invest; now it is a 1b euro business with a 200m euro profit. China’s demographics are changing: they have a 1-2 child policy and 400-500m middle class people with good income but technology and e-commerce may be the biggest disruption. “If we’re not as fast as China and China’s consumers we will lose market share.” @dairy_news facebook.com/dairynews

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DAIRY NEWS NOVEMBER 24, 2015

NEWS // 5

Good reasons to expect early dairy price lift SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA CHAIRMAN John

Wilson says dairy prices are expected to firm up early next year. Speaking last week at the release of the co-op’s first quarter results, Wilson said inventory levels in New Zealand are low and China is re-entering the market. This should help push prices up in the new year, he adds. Last week’s GlobalDairyTrade (GDT)

auction saw the price index down 7.9%, its third consecutive drop. Worryingly, milk powder prices tumbled: whole milk powder was down 11% to US$2148/tonne and skim milk powder down 8% to US$1851/t. Fonterra said it was increasing its forecast earnings per share range for the current financial year to 45-55 cents. With a forecast farmgate milk price of $4.60/kgMS this lifts the total available for payout to $5.05-5.15/ kgMS and would currently equate to a total forecast cash payout of $4.95-5.00 /

kgMS after retentions. The co-op also said it was increasing the rate at which farmers are paid the cooperative support of 50c/kgSM, with the total amount paid up to December rising from 18 cents to 25 cents. Wilson says performance in the period August 1 – October 31, 2015 built on the strong second half of the 2015 financial year. “While it is tough on farms due to low global milk prices, farmers will welcome the ongoing improvement in Fonterra’s performance

delivering increased returns. “Performance is well ahead of last year and we are hitting our targets on gross margins and operating and capital expenses. “At the same time, [business overhaul] is generating significant cash savings. We are… therefore able to lift our forecast earnings per share range.” At this stage of the season, based on the dividend policy, management would recommend at the end of the financial year an

Fonterra chairman John Wilson expects dairy prices to firm.

annual dividend of 35-40 cents per share, subject to board approval. This would equate to a total forecast cash payout of $4.95-5.00/kgMS. “The performance and business [overhaul] savings mean we are also able to increase the December co-operative support payment and those payments will now be completed by April,

Board remit a distraction MATAMATA FARMER Adri-

enne Wilcock says she is opposing the remit to reduce the size of Fonterra’s board. Wilcock, who is chairman of AgRecovery Foundation, says it’s “another unnecessary distraction” for the co-op. “I’m extremely concerned how

this will play out if the motion is passed or is supported by a good number of shareholders,” she told Dairy News. “I fail to see how the board can function effectively.” Wilcock says she supports having a re-look at governance but it has to be done in a proper way;

with robust discussion among shareholders. On board composition, she says there needs to be discussion on what’s too many and what’s too few. While any shareholder can put a remit before the AGM, Wilcock questions whether Colin Armer

and Greg Gent went about it the right way. She points out the board is reviewing the governance structure but other important issues like the WPC80 false alarm and low payouts took precedence. Wilcock and husband Warwick milk 480 cows.

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giving farmers access to more of that support earlier,” says Wilson. Fonterra is still forecasting a 5% reduction in milk collections in NZ for the current season, equivalent to around 150,000 MT of whole milk powder. Since August the co-op has reduced the amount of product it expects to offer in the GDT auction during the year by 146,000 MT. “In addition, more product is being sold through bilateral customer agreements for a premium on prices achieved

on GDT. Ingredients inventory levels for the first quarter are in line with the same period last year,” says chief executive Theo Spierings. “We are benefiting from the investment in new plants in NZ, which is improving our manufacturing options and reducing peak costs. Our strategy is moving greater volumes of milk into higher-returning products to take advantage of improved prices relative to whole milk powder.” @dairy_news facebook.com/dairynews

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DAIRY NEWS NOVEMBER 24, 2015

6 // NEWS

Toy tankers raise cash

Matt Shirtcliffe, creative director Shirtcliffe & Co (right) and Michelle Thompson, chief executive RHANZ, with the mini tankers at the Fonterra Farm Source Store in Cambridge. PHOTO: CRAIG BROWN

THE SALE of milk tanker min-

iatures by Fonterra Farm Source stores is generating cash to help support rural mental health projects run by Rural Health Alliance Aotearoa New Zealand (RHANZ). From September 1 each mini Fonterra tanker sold has yielded $10 for RHANZ community projects. RHANZ chief executive Michelle Thompson says improving mental health in rural communities is a priority for its 38 RHANZ member groups.

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Landcorp has achieved the almost impossible by turning bare pasture north of Taupo into one of the world’s most high-tech sheep milking operations. Dairy News last week saw some of the state owned farmer’s flock of 2700 East Friesian milking ewes going through the new state-of-the-milking shed.

Spring Sheep Dairy, as it is known, is a joint venture with the agribusiness investment company SLC Group to produce high quality milk for mostly Asian markets. Thomas Macdonald (22), a Landcorp business manager, has managed this $3.9 million Greenfield project which included building the shed, buying stock and recruiting a manager, five full time staff and 20 casual staff. The first milk flowed

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for making this partnership a reality.” The Mini Fonterra Tankers – available through Farm Source stores and online are limited edition diecast replicas. “They are cool collectables and would make perfect Christmas presents,” Thompson says. RHANZ chair Dr Jo ScottJones commented that with soggy milk prices and difficult weather causing farmers so much pain, it is great to see Fonterra Farm Source helping out. www.store.nzfarmsource.co.nz

Sheep milk flows PETER BURKE

“There is increasing concern about the pressure building on farming families and the health providers who look after them. So when Fonterra Farm Source said they would give us $10 from each mini tanker sale, we were delighted. “The partnership was announced yesterday at the Fonterra Farm Source Cambridge store and particularly we thank Shelley Cresswell, category marketing manager Farm Source and Matt Shirtcliffe, from Shirtcliffe and Co,

into the vat at St Kilda farm on September 15 and every three days a tanker takes it to Waikato Innovation for processing. Unlike a typical cowshed, the sheep milking shed is quiet, uses less water because there is less effluent, and sheep is milked in just a couple of minutes. The shed can milk 1000 sheep an hour; milking is twice a day. But it’s the array of technology that catches the eye of first time visitors. “This parlour was built from the ground up with technology in mind,” says Macdonald. “We have individual metering of animals per day: we are the first in the world to measure fat protein per animal per day.” The data gathered in the shed will later to be

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Landcorp’s Steven Carden and Thomas Macdonald in the milking pit of the new shed.

used to select the best animals to breed from. At present about 50% of the milking flock are pure East Friesian; the remainder are crosses. Milk production varies between these, the pure-breds producing about 2L per milking and some of the crosses about 500ml. The aim is to produce a higher yielding flock and to send surplus lambs for meat. Landcorp chief executive Steven Carden says while this is in some ways a pilot project, the company aspires to grow a substantial business and an industry in its own right. The plan is to start another such operation in the region within three years. • Read more about Landcorp’s sheep milking venture in next week’s Rural News.

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DAIRY NEWS NOVEMBER 24, 2015

8 // NEWS

Tier three and four cities focus for co-op’s China strategy PAM TIPA pamelat@ruralnews.co.nz

FONTERRA WILL focus

on ‘tier three’ and ‘four’ cities in its bid to double sales in China in the next five years to $10 billion per annum, chief executive Theo Spierings says. This would be twice the 2014 sales in China of $5b. Most of the growth

in the past five years has been in tier one and two cities, which the main players are focussed on, Spierings told a China Business Summit in Auckland. Tier three and four cities have had big growth and present a huge opportunity, but will be a different ball game. Social media e-commerce has 650m internet users and

e-com is growing very rapidly. China is Fonterra’s number-one market but the outright growth of the last five years will not continue into the next five years: 5-6% per annum growth is optimistic in dairy. Fonterra’s ingredient business is a stronghold and has grown in five years from a NZ$1b to a NZ$4b

business in 2014; it was NZ$1b less in 2015. Food service has grown from $600m to $1.5b in five years and it is going quickly to $2b. “To put it in context, people have told me that is the entire wine industry of NZ – that is food service only.” Fonterra didn’t really have brands such as Anchor, Anlene and Anmum present in China

MARKET SHARE’S KEY FONTERRA CHIEF executive Theo Spierings says he welcomes competition from Chinese players investing in New Zealand, but he is also concerned about them. “Should we be concerned about Chinese companies investing in NZ because of brand NZ – because of the premium prices they can achieve in their market? I don’t think we should be concerned,” he told a Chinese Business Summit in Auckland, in answer to a question. He is more concerned about Chinese customers for ingredients and infant nutrition shifting towards Europe. “Europe is gaining share. If

Europe gains share, that means all of NZ is losing share. So Chinese players investing in NZ because of Brand NZ and food safety and quality is a good thing. “What should not happen is a lot of capacity being built… that appears to be idle capacity in five years from now.” When asked about Synlait selling milk powder at about a third less than Fonterra’s price, Spierings said those developments were wrong if you wanted to drive value for your country and a premium for the NZ brand. He had not heard of a third less, but had heard various prices. He could not tell competitors

what to do “but it is not doing us any favours as a country”. Spierings was asked whether Chinese consumers in China could know that what they were buying really was a Fonterra product rather than a copy. The 1080 scare made Fonterra speed up technology to guard against this, he said. Tamper-proofing on the can will be crucial and they have fast-tracked large investments into pharmaceutical grade resolutions for tamper-proofing. They will also use two dimensional barcodes as used on AirNZ boarding passes so the consumer can scan with an iPhone and it tracks the product back to the factory.

Theo Spierings at the Chinese Business Summit.

in 2010. Anchor is now in the top five e-commerce milk brands in China. It is early days for brands, he said. They had launched Anmum and bought it into the partnership with

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Beingmate. Fonterra has 10 farms which created a turnover this year of at least NZ$300m. “We want use that milk for partnerships and to connect into our brand business. We want to capture end-to-end value,” Spierings said. Strategic partners who are customers in ingredients knock on Fonterra’s door because using Chinese fresh milk will become policy. “If you have access to safe, fresh milk you are a strong partner,” he said. “For the investor the Chinese journey is really about ‘can we lift Chinese businesses from strong Chinese players to global players?’ and therefore you need win-win partnerships.” China will become a global player with global companies. “The government has been implementing adjustments very fast; if we lose speed and build walls we are not going to be part of the game.” In the agenda to double the 2014 $5b footprint in China to $10b in five years, ingredients will, percentage-wise, be a lesser part of the equation; it will still be a massive part, given

the $6b target. Twenty percent of the targeted business will be from consumer and that involves e-commerce and digital. “All players have invested in tier one and two cities; we will go tier three and four,” Spierings says. The farms will grow from 400m L to 1b L but those will connect to partners and Fonterra brands. The global milk pool strategy for Fonterra is connected to Beingmate in China, but also connecting NZ, Australian and European milk pools and building the Chinese milk pool will provide options. “That’s a stronghold and unique in the world.” Their strategy will be to adapt very quickly, reflect so that they are not always reacting and to adapt. “Then you make sure you have disruptive people in your organisation because if you don’t have disruptive people I don’t think you’re going to win in China,” Spierings said. “Once you have disruptive ideas you need to innovate very quickly.” @dairy_news facebook.com/dairynews

DAIRY NEWS NOVEMBER 24, 2015

NEWS // 9

Branding crucial in China PAM TIPA pamelat@ruralnews.co.nz

SEVERAL YEARS ago

New Zealand had a 20% market share of infant formula in China and now that has dropped to under 10%, says Keith Woodford, agri-food systems, Lincoln University. Just about every valueadd product is currently losing market share in China. If we don’t collaborate for online marketing under a New Zealand Inc brand then we will remain in the commodity business, Woodford told a recent China Business Summit in Auckland. “I am a proponent of online marketing of our food. We have one big company in NZ and we have lots of smaller companies,” he said. “Nearly all our smaller companies if they try to go it alone in China will fail. If they try to go the supermarket way they will get lost in that jungle. But if they try to go the online way by themselves they will get lost in that jungle too.” He cited over a million products on one popular site. “There is only one way for NZ to capture valueadd with its agri food in

China and that is to capture an integrated NZ Inc approach,” he said. “Just talking clean and green isn’t going to get you far but at least if we work together in an integrated NZ framework we have a chance to be on the same standing, the same level, as the big international companies we are trying to compete with. “The priorities are food quality, food safety and, even more, food products. “I have a vision for a NZ portal: it would have all NZ products there; any Chinese consumer would go onto that site and know they were all NZ guaranteed products with appropriate authentication. “Their purchases would go into the online cart and within 24 hours would be delivered to their house.” Woodford said all the bits of the system are already there. But the overall integration will cost money to set up. One company he has spoken to was spending a billion dollars on its digital and IT system. “We don’t need to spend that much, but this is the billion dollar opportunity for NZ,” Woodford said. “It is actually the multi-billion dollar opportunity and it is multi-billion for each and every year. The demographic we

are interested in is essentially the same demographic that travels to NZ.” He said there would soon be 100 million Chinese in the high income bracket. To capture the value add with our agri food we must all work together. “I would like to see

this as a government-private partnership. I first did some work on this four and a half years ago for New Zealand Trade and Enterprise but it got lost somewhere in the bureaucracy because of changes,” he said. “I then thought maybe it can be led by private enterprise but most of the

private firms have enough issues of their own rather than trying to pull the whole thing together. “So I am back trying to talk to some senior Government ministers about whether they can help with the initial facilitation of this.” It would be hard, but the opportunities are huge.

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DAIRY NEWS NOVEMBER 24, 2015

10 // NEWS

Our 5-millionth cow, for the moment at least PETER BURKE peterb@ruralnews.co.nz

SOME MAJOR milestones for the dairy industry: it now has 5 million cows and last season milk production hit a record 1.89 billion kgMS – up 3.6% on the previous season. According to DairyNZ senior economist Matthew Newman the increase was due to more cows and the production per cow. NZ now produces 56%

more milk than a decade ago. But Newman warns that the records set out in DairyNZ’s and LIC’s annual statistics report are likely to be shortlived due to the lower payout this season. “We also know the numbers will come back from the downturn in milk prices which has seen 240,000 cows culled over the last 12 months. Farmers are concentrating a bit more on their better producing animals and ensuring they are fed well. That means more

TALE OF THE TAPE ❱❱ 5 million cows ❱❱ 11,970 herds

❱❱ 67% of herds run by owner operators

❱❱ 419 (average herd size)

❱❱ 32.4% of herds run by sharemilkers

❱❱ 146ha (average farm size)

❱❱ 2.87 cows/ha

poor-producing cows will be culled this season.” Newman says the industry’s forecast of a 5% drop in milk production this year signals a drop in cow numbers and probably a drop in the use of supplements. Other sources have told Dairy News they believe milk production will be down further. The 50-page report contains a wealth of interesting data about the expansion of the industry and its trends. Take herd size: just over 50% of herds have 100-349 cows, 29% have 500 or more, 12% 750 cows and 5% 1000 cows or more. On herd locations: 74% are in the North Island vs 26% in the South Island; but in respective milk volumes the gap is not so pronounced: 60.2% of all milk is produced in the North Island (especially Waikato) and 39.8% in the South Island (mostly North Canterbury followed by Southland). This is backed up by the statistics on herd sizes in the regions. In Taranaki,

for example, the average herd size is 291 cows vs Waikato’s average herd size of 335. In the South Island, the North Canterbury herd size is 808 and Southland 590. The report also highlights the move to Kiwi-cross cows. “We now have 45% cross-bred cows in the national herd vs about 28% a decade ago. The cross-bred cow is well suited to NZ conditions because they are a bit smaller than Holstein Friesian so there is less damage to wetter soils, They are very efficient at converting feed into milk,” says Newman. The statistics also reaffirm that though Holstein-Friesian cows produce more milk, the beloved Jersey, linked closely to Taranaki, produces the highest percentage of milk solids – 9.87% versus the Holstein-Friesian 8.18% and the Kiwi-cross at 8.92%. Newman says the report highlights how good and efficient the NZ dairy industry is, its work in producing better

Matthew Newman, DairyNZ.

cows and feed having paid off. “NZ dairy cows are very efficient producers of milk because of concentrated genetic gain over a long time and the emphasis on quality feed from pasture. The improved cows are turning that pasture into milk and that’s NZ’s competitive advantage.”

Check out our websites

www.dairynews.co.nz

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BREAKING NEWS MANAGEMENT STORIES MARKETS & TRENDS MACHINERY REVIEWS COMPETITIONS AND MUCH MORE...

These are not called testing times for nothing. When the weather’s getting drier and you’re managing limited feed, the decisions you make now are important. And this is where herd testing proves its worth.

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Testing through summer allows you to determine candidates for early dry-off, and gives you options for culling your least productive cows and redirecting feed to your most efficient producers.

And because drier weather can lead to lower volume and a higher Somatic Cell Count, testing is a good way to keep tabs on udder health, as mastitis costs you money. At LIC we’re committed to helping you get the best from your herd, and the season. And to help you with your herd testing this season we have two special offers:

• an InvestaTest discount that kicks in after just three tests, and • 2 months interest-free spread payments. If you’d like to find out more talk to your FSM or, call us on 0800 264 632 and we’ll be pleased to help.

DAIRY NEWS NOVEMBER 24, 2015

12 // OPINION RUMINATING

EDITORIAL

Co-op at crossroads

MILKING IT... Misery guts politician

Disappointed in war

Better bottles weigh less

Cows fly to their death

WINSTON PETERS’ office loves to bag the dairy industry and Fonterra, mostly for all the wrong reasons. Last week, three days before the GDT auction, the party issued a statement predicting the GDT price index would drop 10%; it dropped by 7%. We wonder what Peters’ crowd is trying to do, but we’re certain that inaccurate predictions about GDT and heaping more misery on farmers are helping no one.

A WAR is brewing in the flavoured milk sector: Goodman Fielder has released a Puhoi Valley range of flavoured milks – Belgian chocolate and a caramel and white chocolate. These are Goodman Fielder’s response to Lewis Road Creamery, whose Whittakers chocolate milk remains a phenomenon. Lewis Road founder Peter Cullinane is said to have found it “very disappointing” that such a big company as Goodman Fielder, the country’s second biggest milk processor, is “so bereft of ideas” as to resort to “blatant copying”.

A US company, Milacron Holdings Corp, of Ohio, says its Uniloy business and Consolidated Container have together developed a lightweight range of retail milk packs in gallon, half-gallon and other sizes – called DuraLite. Dura-Lite containers are strong, appealing and compatible with the supply chain, its makers say. They have radiuses, symmetrical ribs and angles that work together to reduce weight without sacrificing bottle performance or aesthetics. The containers will hit retail shelves in early 2016.

SOME AUSTRALIAN cows are taking 13-hour flights to China before ending up on a plate. Chinese demand for beef, which used to be called ‘millionaire’s meat’, has grown fourfold since 2000, putting beef prices there among the most expensive in the world. Hence Elders’ decision to fly the cows and milk the fresh beef market for all it’s worth. Crated and loaded onto the main deck of a Boeing 747 cargo plane by hydraulic lift, the 150 beasts this month were on Australia’s first live flight to central China. Destination: the abattoir.

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FONTERRA SHAREHOLDERS will be watching hawk-eyed this week’s annual general meeting in Waitoa. They will be keen to note the reception given the remit is calling for a cut in the number of directors. The remit, moved by former directors Greg Gent and Colin Armer, calls for a nine-member board – six elected and three appointed directors. A 75% ‘yes’ vote is widely expected to be out of reach, however it is possible the remit could garner 50% support. This would throw the co-op’s governance in turmoil. The remit has exposed a divide in Fonterra – a division among directors and shareholders. During the 14 years since Fonterra’s formation, the days of Kiwi Co-op and Dairy Group politics may have been forgotten. But farmers feel that not all is forgiven. When the chairmanship changed in 2012, it was a close contest. Armer missed out by one vote and resigned; some farmers believe he is seeking vengeance. Gent also missed getting the chair when Fonterra was formed; he was chairman of Kiwi Co-op and Henry van der Heyden, as chairman of Dairy Group, got the nod. Gent served as vice-chairman but never held the top job and retired in 2011. Some farmer-shareholders feel these two men have chosen this era of dairy downturn to put the boot into their co-op. But some agree with Gent and Armer that Fonterra looks in a bit of a bind in several ways. And time is running out for the co-op to sort out its woes. Does the answer lie in altering the board? This means there will be wholesale change to management also. And if the number of directors were to be reduced – which probably makes sense – then the way Fonterra shareholders elect directors would need to change. One shareholder commented on the ‘raffle’ by which the shareholders now struggle to get quality at the board table. The gloomy fact is that 10,500 farmers geographically far-flung across the country haven’t much hope of accurately assessing who are the best candidates. Also, many – probably most – shareholders know very little about the skills, experience and character needed in directors charged with running their co-op – the world’s biggest dairy exporter! This prompts the question whether Fonterra’s director election system needs an overhaul. The candidate assessment panel, whose job is to advise farmers on the qualities of each candidate, should also be up for review. But before these questions can be dealt with, there’s the ‘small’ matter of dealing this week with this resolution.

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DAIRY NEWS NOVEMBER 24, 2015

OPINION // 13

Improved technology, products on way for farmers MARK ROSS

NEW ZEALAND farm-

ers and growers are one step closer to accessing new, improved technologies and products to keep them internationally competitive. A new bill introduced to Parliament will address NZ’s woeful data protection regime – one of the worst in the developed world – which causes many problems for farmers and growers unable to get fit-for-purpose products needed to farm productively. Farmers of minor species such as goats, and growers of minor crops, are most affected. The change will also go a long way to replacing older chemistries with more environmentally friendly options. With the phasing out of some products the pressure is on farmers and growers to find alternative ‘softer’ chemistries. In many cases these chemicals exist but are less likely to be marketed in NZ. Diazinon is one example: the insecticide is used to kill grass grub and is due to be phased out in 2028. Grass grub, which attacks the root systems of plants, is estimated to affect almost half NZ’s productive land – about 17.5 million ha. Grass grub incurs production losses of up to $90m a year. If there are no registered alternatives to Diazinon by 2028, many hectares of pasture could be lost or unregistered chemical products could be used instead. Extended

data protection will go a long way to encouraging the development of replacement insecticides. In the goat industry, the most commonly used veterinary medicines are

Mark Ross

drenches. Many anthelmintics have to be used ‘off label’, because there is no registration for these products to be used for goats. They have been tested and registered for use on cattle, sheep or horses – but not goats. Growers of minor crops including citrus, squash, sweet corn, kumara, tamarillos, field tomatoes, avocados, berry fruit and stonefruit often ask Agcarm member companies to introduce products their companies have available overseas to NZ. Despite the demand these products aren’t being introduced because our market is very small and developing new technology is expensive due to the cost of assembling thousands of pages of data proving that a product works, is safe for people and the environment, and that residues in produce are well within acceptable limits. Manufacturers need to

Comparison of global data protection regimes

Country Japan Korea EU Members Chile Colombia US Brazil Singapore Australia China New Zealand Mexico

Number of years 15+ 15 10 + 5 10 10 10 10 10 10 6-10 5 5

provide this information in order to get approval from two regulators – the Ministry for Primary Industries and the Environmental Protection Authority. The data pack-

age that must be supplied in support of an application costs hundreds of thousands of dollars to assemble. Often this data is not protected from competi-

tors. So there is no incentive for companies to invest in researching solutions for NZ pest and diseases. Ten to 15 years of data protection is common in

other developed countries. So while the Government is taking a step in the right direction with an increase to eight years, 10 years protection would enable NZ farmers and growers to

access products similar to their international counterparts. • Mark Ross is chief executive of Agcarm, the organisation representing agricultural and horticultural chemicals.

DAIRY NEWS NOVEMBER 24, 2015

14 // AGRIBUSINESS

Maize planting down as lower payout bites PETER BURKE peterb@ruralnews.co.nz

PLANTINGS OF one

the dairy industry’s most popular supplements is way down right across the country. So says the president of Rural Contractors New Zealand, Steve Levet, who reports that one major contractor has planted 50% less maize this season than last. In Manawatu the weather has been wet and cold and contractors have been unable to plant crops on some farms. Levet says while the weather has squeezed some maize plantings, of greater effect is the lower payout which is forcing farmers to cut costs: maize is one casualty. “Farmer confidence has taken another hit. I was asked by a government official if farmers were planting more crops to help cope with El Nino and my answer was ‘no’. They are unloading any stock that won’t make them money and with the beef price up, until recently this strategy has worked. But the price has now dropped. Yes crops are going in but I wouldn’t say there is more going in: maize in particular is down.” Levet says in Northland the weather has been good enough to sow crops, but he’s heard some farmers don’t have the money to

put down a crop. In Southland a record amount of fodder beet is being sown, but in Manawatu a cold spring has made it hard to establish crops. Meanwhile DairyNZ’s senior developer for feed and farm systems, Kim Marshlan, says she’s not surprised at the reduction in maize plantings, especially that grown by contractors. With the lower payout they are probably banking on less demand as many farmers focus on growing grass and relying less on supplements. Marshlan says a key DairyNZ messages to farmers in areas likely to be hit by dry El Nino weather is start planning now. DairyNZ has met with farmers in Wairarapa, eastern Bay of Plenty and Northland to get them thinking about making an action plan. “By planning now what their decisions points will be if things get really dry, it takes a lot of stress out of the situation. We are encouraging farmers to complete a summer management plan and there are resources to help them do that. Hopefully by sitting down and planning ahead now they can work out what they can afford to do and what their options are.” One option is summer crops and Marshlan says even though sowing time is nearly over there is still time to plant crops for a valuable summer feed

Some contractors are planting 50% less maize this year.

CRV Ambreed’s old bull farm.

Key piece of dairy history for sale CRV AMBREED is selling its 13.7ha bull

buffer in some areas. “Some crops can still be planted until early December. Sweet sudan grass, sorghum-sudan grass hybrids and greenfeed maize maintain relatively high levels of production during hot and dry conditions and can reduce the risk of having inadequate forage during the summer,” she says. Marshlan says sudan grass and sorghum-sudan grass hybrids are primarily used for grazing and cutting because of their high regrowth potential. They regrow faster than forage sorghum and recover quickly after grazing or cutting. Sorghums are known for being drought tolerant, she says. “They absorb water more efficiently because they have twice as many secondary roots per unit of primary root as maize

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and have half as much leaf area and a waxier leaf surface – traits that help withstand drought and provide feed during summer pasture shortages. Sudan grass and sorghum-sudan grass can be grazed 35-45 days after planting.” Marshlan says greenfeed maize can yield larger quantities of green fodder per hectare than most other alternative summer fodder crops and summer pasture. She says it can be cut and carried to the herd or break fed. But she points out that the summer greenfeed option is not suitable for silage. She says nitrate poisoning may be an issue with any crop that grows rapidly, has been drought stressed or has been frosted. Crops should be sampled and analysed before grazing/cutting if nitrate buildup is suspected.

farm in Waikato. At least 3000 bulls have been housed there since it was set up in 1969. At the company’s peak production 200 bulls were housed on site at any one time. Farm manager Dave Smith has worked on the farm since 1990 and speaks fondly of the bulls. “I have a passion for the production side of our business and the semen collection work our team performs. I get a buzz out of ensuring we have the healthiest and most productive animals possible…. The move to a new facility will add to the credibility and achievement of this aim. “Legendary top sires… come to mind that breeders will no doubt remember as well: Magley, Manhattan, Murmur, Banquet, Amadeus, Extasy, Firenze, Pierre, Skelton and Paladium. “These were top sires on the RAS list and many remained productive beyond their second crop of daughters.” The company has moved to a new production, distribution and logistics centre, hence the selling of the former bull farm. CRV Ambreed operations manager Andy Medle says the company achieved several New Zealand firsts in at the old

centre. “We were the first company to export live bulls for sexed semen production from our centre to America. Their semen was collected in the US, sexed and imported back into NZ for sale to local farmers.” Medley remembers the company holding a bull parade while hosting the 2010 World Jersey Conference. “The old site became an EU approved collection centre in 2008. “This allowed us access to sell our semen throughout the EU, a milestone for CRV.” In December 2014, CRV Ambreed opened its new export-approved CRV Bellevue production and logistics centre near Cambridge. Over the past year CRV Ambreed has moved its distribution to the new facility. All remaining bulls will be moved to the new site when facilities are built before the end of the year. Medley says the new property “futureproofs our company with additional capacity to meet market demand”. The firm’s Bellevue centre has a semen collection facility and processing laboratory, storage space for export and domestic products, warehousing for 6000 artificial insemination banks and 38ha of grazing paddocks.

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DAIRY NEWS NOVEMBER 24, 2015

16 // MANAGEMENT

Bigger heifers, more milk PAM TIPA pamelat@ruralnews.co.nz

NORTHLANDER DAVE Gray wants to grow

Northland farmer Dave Gray.

better heifers to improve herd fertility and production, and to milk fewer cows. The dairy farmer of 34 years, with wife Heather,

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has 240ha of flat land at Awanui with 730 Jersey and Jersey-cross spring calving cows, producing just under 300,000kgMS. He runs a system 3 farm using palm kernel supplement, silage and chicory grown on 10% of the farm. “What makes our farm different is we have measured our grass with a

plate meter every 10 days for the past eight years. We have used that to focus on maximising grass growth and utilisation,” Gray told a DairyNZ heifer grazing project field day at Hikurangi. “One of the big challenges is to grow bigger heifers to improve our herd fertility and improve

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performance. With 730 cows through a 40-aside herringbone shed – 19 rows – that’s a lot of cows to milk so that’s another good reason to grow bigger heifers. We want to run the same liveweight per hectare but a lot fewer cows.” The farm’s cows average 430kg; they should be 480-500kg. Ideally they would be milking 650 cows which is two rows fewer. Rearing bigger heifers and improving herd reproduction would allow them to select the best genetics to achieve their breeding objectives. Gray says he wants their herd to be in the top 10% for BW. Dairy heifers should calve at 90% of their genetic potential mature liveweight, an ambitious target requiring effort and focus, says Gray. Northland suffers wet winters and dry summers, facial eczema, it has low energy grass, variable pasture growth, copper and selenium deficiency and calves there wean too small. Four years ago he was disappointed in the size of the heifers coming into the herd. With his team he formulated a plan. They own a separate calf block of about 30ha of sandy peat. The R2 block is heavy wet clay. Italian ryegrass has been very important, doubling their carrying capacity and giving a much better winter and spring performance. They looked at their grazing management and worked with a vet on a health plan. Out of this came a policy and procedure to achieve it. “We want good healthy well reared calves weaned at their target weight by 10 weeks with well-developed rumen function,” says Gray. “Be wary of rearing small or sickly calves; they are much harder to rear and often a challenge to get to target weight. Late calves kept six weeks from start of calving have to grow nearly another 100g a day, so early calves are best. “We wanted our calves shifted daily onto good quality pasture. Residuals are maintained with empty cows or a mower. These are young animals; they need to choose

what they eat, you can’t make them clean up pasture. Good sub-division with bay sized paddocks is ideal.” Young stock are weighed every month and entered into LIC Minda Weights program. Handling calves every month picks up problems early. Calves were falling behind growth rates in their first summer because of dry conditions and low ME grass. They feed palm kernel and silage through the summer – especially the first summer. They have a regular drenching and health programme. When they weigh the calves each month they drench a triple combination down the throat. They supplement with selenium and copper, monitor for facial eczema and use zinc at risk periods. They watch carefully for things like theileria or woody tongue or other problems that can retard growth. Much effort is put into avoiding pasture damage in wet periods. In April ‘something’ happens all over Northland – as suggested by other Minda Weights records in the region to which Gray has access: all show the same challenge – heifers look well fed but show up as having lost weight. Now he provides PK and silage even though grass is available. Results of their improved heifer raising programme have shown heifers born in 2012 calved almost 50kg heavier on average than previous heifers. The Jersey, Jersey-cross 2012-born heifers calved at an average of 450kg. In previous years they would have been about 400kg, says Gray. “Those heifers are going into the herd bigger than the cows so the cows aren’t going to boss them around too much. Those heifers will be around 480500kg as mature animals.” “We are learning… we aren’t right all the time but we’re improving with the information from the weigh-ins and analysis charts from Minda.” Results show lactation to March 16 of the 2012born heifers produced an average 367kg – 92% of the production of the mature cows.

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DAIRY NEWS NOVEMBER 24, 2015

18 // ANIMAL HEALTH

Ading BCS to BW THE ADDITION of body condition score to breeding worth in February will accelerate the rate of genetic gain in New Zealand dairy cows, says DairyNZ Following ten years of research, body condition score (BCS) will in February be incorporated into breeding worth; it recognises the value of a cow’s ability to hold onto body condition into late lactation. New Zealand Animal Evaluation Ltd (NZAEL), a wholly owned subsidiary of DairyNZ, did research in late 2014 which determined this value to be $107 per late lactation BCS. This research project followed a 2013 review of the national breeding objective (NBO) where farmers indicated that they saw a cow’s BCS in late lactation as an important trait. The economic value is driven by the remedial actions a farmer needs to take with lighter cows through autumn and winter, to get them up to BCS 5.0 before the start of calving. Achieving BCS targets is important because cows that calve in poor condition will be compromised for the subsequent season. This change to BW is estimated to result in only minimal shifts for most herds and bulls ($0-$15). It is predicted that the new eight trait BW index will lead to faster genetic gain in the national herd. DairyNZ’s latest monthly news-

Following 10 years of research, BCS will be incorporated into breeding worth in February.

letter Inside Dairy reports Waikato lower order sharemilkers Shane and Lynda Campbell saying they have been ahead of the curve in recognising the value of BCS in the 450cow herd they milk near Matamata. They have local veterinarian and accredited BCS assessor Katrina Roberts visit once a month. She reports on the spread of cow BCS and the changes since her last visit, and makes recommendations for the coming months. The Campbells run almost half the herd as a separate mob containing the heifers and thinner cows. When cows’ BCS is recorded as falling to 4.0 or below they are drafted out of the main herd. In the second mob they are fed an extra 2-3kgDM/ day.

Campbell says he is looking forward to seeing the BCS trait incorporated into BW and believes it will confirm much of what he has witnessed in past years of recording BCS in their $132 BW herd. “The top cows’ condition seems to fall off a lot quicker over lactation. By putting the BCS trait into BW, that puts a value on their ability to hold that condition, especially later in lactation. If you can get a cow that can milk well, and hold BCS, it has to be a worthwhile trait to consider.” They aim to get 300 days in milk, but he says they also want to be realistic about the cows being up to BCS 5.0 for the start of following season. He acknowledges the cost of drying off early or getting a lighter

cow up to condition through winter. Last season they had 20 cows at less than BCS 4.0 in February that needed drying off. “We have established that those 20 cows cost us $12,500 in lost production and extra feed.” His calculation is based on a milk price of $5.50/ kgMS and a feed cost of $250/t of dry matter. With several years of BCS history behind his herd, Campbell is also interested in the heritability of BCS from mother to daughter. He notices that cows that lose their weight quickly tend to produce heifers that do the same. “It will be good to see the BCS numbers in the BW backing up what we are observing in the herd every season,” says Campbell.

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Farmers, vets must tackle antibiotic resistance VETERINARIANS ARE urging farmers to work with them to address antibiotic resistance in dairy cattle. In a message last week to mark World Antibiotic Awareness Week, Dr Jenny Weston, president of the New Zealand Veterinary Association’s dairy cattle branch, says the effectiveness of essential medicines for animal health and wellness must be preserved. “Globally, few issues are of greater importance to society than antibiotic resistance and the threat this poses to modern medicine – veterinary and human. “There is growing concern in NZ and internationally about the use of antibiotics in food animal production systems and how this will impact the effectiveness of antibiotics. Many bacteria and diseases are shared between humans and animals so the use of antibiotics in animals can affect how medicines work in humans and vice versa. “Veterinarians and everyone involved in livestock farming are responsible for improving disease control and putting the focus on preventative health care so that we reduce, replace and refine our use of antibiotics.” She says effective disease control includes vaccinations, high standards of hygiene and husbandry, disinfection procedures, biosecurity measures, good animal nutrition, appropriate housing and close monitoring of livestock. “We also need to advance innovative therapies to develop alternatives to antibiotics. Weston reassures farmers that veterinarians will continue to responsibly prescribe and administer antibiotics as required, as part of an integrated disease control programme, not a replacement for one. “And we need to make sure the antibiotics we use are effective. For example, if administering antibiotics it’s important this is done correctly, including completing the dose of antibiotics and storing them correctly.” Weston says NZ is well placed to lead in addressing antibiotic resistance as we are one of the world’s lowest users of antibiotics in animals. “Our livestock also have a high health status due to our pastoral based farming systems and strict biosecurity measures at the border.” This year the New Zealand Veterinary Association launched its vision for the future: ‘By 2030 New Zealand Inc will not need antibiotics for the maintenance of animal health and wellness.’ Veterinarians, working where animals, humans and the environment meet, are leading the way in the responsible use of these medicines in animals and aim for a future where antibiotics will not be routinely needed to maintain animal health and wellness. Weston says the NZVA backs the World Health Organisation’s view that antibiotics critical to human health must have limited use in veterinary medicine and be reserved for occasions on which they are the only appropriate therapy. This will be one of the veterinary profession’s early targets as it progressively seeks to reduce, refine and replace antibiotic use. Veterinary clinics NZ-wide are supporting Antibiotic Awareness Week and promoting preventive health care and responsible antibiotic use, including information on their websites and Facebook pages.

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DAIRY NEWS NOVEMBER 24, 2015

FEED / ANIMAL HEALTH // 19

Crop options for late planting THE GRASS has never

really fired this spring and as I travel around the country it appears many farmers will have little surplus for silage. If you are in a warmer district and your feed budget shows a summer or early autumn feed deficit, it is not too late to plant forage sorghum x sudan grass, or maize for silage or greenfeed. These crops are also great options if you have encountered establishment issues and have patchy brassica or fodder beet crops. Forage sorghum x sudan grass hybrids (eg Pioneer brand Bettagraze) are an excellent option for summer feed in warmer districts, producing good yields of moderate quality feed in a relatively short time even under dry growing conditions. Because they grow rapidly, crops

grass has good energy and protein levels. Maize is also an excellent late planting option producing high yields of quality drymatter even under dry growing conditions. The method of planting and maize seed choice will be determined by how you

plan to use the crop (See table 1). The feed value for greenfeed maize is in the range 10.3 - 10.8 MJME/ kgDM with higher energy levels achieved as the grain content increases. Greenfeed maize can be chopped and fed in the paddock or break fed.

Feeding behind an electric wire reduces crop wastage from trampling. Care should be taken when green-feeding crops that have high amounts of grain present as excessive grain intake can lead to acidosis (also known as grain overload). Maize silage crops

mature according to heat unit accumulation, resulting in later planted crops maturing in fewer days than earlier planted. Throughout the North Island it is possible to plant maize crops until the end of November and still have silage harvested before the end of the first

week of April. (Table 2). *Based on long range weather data collected from Whangarei, Whakatane, Tauranga and Palmerston North airports. Harvest dates are estimates only. • Ian Williams is a Pioneer forage specialist. Contact him at iwilliams@genetic. co.nz

can be grazed or harvested (at 80 - 100 cm in height) as little as 35 - 45 days after planting. Unlike many other crops which must be grazed when they are mature, forage sorghum x sudan grass hybrids are versatile. Though they can be grazed, if the feed is not required, they can be harvested as silage or hay and stored for feeding later when there is a genuine feed deficit. When harvested at the optimum stage (80 - 100 cm in height) sorghum x sudan

Table 1: Maize seed and planting options

Method of Planting Conventional Greenfeed only seed drill (15cm rows) Greenfeed Conventional with remaining seed drill crop made into (15cm rows) silage Crop end use

Maize silage only

Seed Option

Forage King hybrid maize seed blend Pioneer® brand maize hybrid – please contact your local Pioneer representative Maize precision for a hybrid planter recommendation

Table 2: Recommended Pioneer brand maize silage hybrid and approximate harvest date (in brackets)* for late planting in a range of dairy regions

Area

Northland

BoP

Waikato

Manawatu

Planting Date 15 November 1 December 34P88/P0791 (26-30 March) P9911 (1-5 April) P9911 (20-24 March) P8805 (22-26 March) P8805 (10-14 March) 34P88/P0791 P9911 (4-8 April) (3-7 April) P9911 (27-31 March) P8805 (29 Mar - 2 Apr) P8805 (17-21 March) P9911 (3-7 April) P8805 P8805 (1-5 April) (23-27 March) P9911 (3-7 April) P7524 P8805 (25-29 March) (2-6 April) P7524 (23-27 March)

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DAIRY NEWS NOVEMBER 24, 2015

EFFLUENT & WATER MANAGEMENT // 21

Plan to get most from farm irrigation WITH STRONG indi-

cations of an El Nino this summer, farmers are being urged to plan how they will use their seasonal irri-

gation volume. IrrigationNZ says a severe El Nino could mean many farmers will run short of water half way

through this season. INZ chief executive Andrew Curtis was responding to NIWA’s prediction that the current El

TIPS FOR SUMMER ■■

Calibrate your irrigator: knowing exactly how much water your irrigator is applying is essential for making good irrigation decisions

■■

Minimise off target application: look at where your irrigation is landing

■■

Identify your soil types and estimate water holding capacity, field capacity and irrigation trigger points: knowing how

much water your soil can hold is the key to successful irrigation scheduling ■■

■■

Schedule your irrigation: using soil moisture sensors or soil water budgets to understand when plants need irrigation and how much to apply is essential Adopt deficit irrigation practices: deficit irrigation is a scheduling practice that keeps the soil

water above the irrigation trigger point but does not fully recharge the soil to field capacity ■■

Re-nozzle your irrigator: reducing the nozzle sizes on your irrigator is an easy way to reduce application depths and tailor applications to a restricted water supply

■■

Prioritise crops or paddocks to be irrigated.

Nino pattern is on track to be “the second most intense since 1950”, with soils around the country drying out fast and irrigation in full swing as temperatures rise. Guidelines released recently by the government urged farmers to use irrigation water efficiently and plan for water restrictions as they prepared for El Nino. MetService says the pool of abnormally warm seas centred on the equator now extends right across the Pacific Ocean from South America to Vanuatu. Sea temperatures in August across the central Pacific exceeded 2 degrees above normal. It is the strongest El Nino since 1997-98, by all indicators.

Curtis says the focus for irrigators needs to be on spreading their water allocations further this season. “Timing is everything in a marginal season. Irrigators need to start the season well and maintain consistent performance. Inefficient irrigation now will have a huge impact on whether your irrigation volume will see you through to March. “Irrigation scheduling is central to this, particularly now irrigators are limited in the water they have in seasonal volumes. With water meters in place, irrigating farmers

should be watching closely what they are using, regularly reviewing soil moisture levels and crop requirements and applying water as efficiently as possible. Following the dry winter there’s no room for waste or poor performance as every drop of water will be needed this summer. We recommend sitting down and planning your water budgets.” Appropriate irrigation scheduling, maintaining irrigation equipment and keeping it performing to specification will minimise down-time, leakage or delivery problems,

Curtis says. “Ensuring irrigators are working as they should guarantees you’re getting the best from the water you apply. Simple earlyseason calibration checks can save a lot of water over the season and are a nobrainer to do. Some systems may be 20-30% out and using more water than you need will shorten your irrigation budget significantly.” As the season goes on, regular maintenance will be essential, says Curtis. “Checking pressure and sprinklers is recommended. www.irrigationnz.co.nz

DAIRY NEWS NOVEMBER 24, 2015

22 // EFFLUENT & WATER MANAGEMENT

Cheap Oz water a money spinner THE FLOOD irrigated pastures of Mike MacLaughlin’s Western Australian farm are a “real money spinner” despite the salty water. The farm’s irrigation water dam has high salt levels, consistently above 1100 ppm. Anything over 600 ppm is said to damage clover pastures but with water being cheap it’s working out well. “Our milk price is 30% higher during December-May, making the flood irrigated pastures a real money spinner,” MacLaughlin said. The water is cheap because nobody wants it. “I recently bought 180 megalitres of extra permanent water allocation for $180,” MacLaughlin says. “We pay around $60/ ML for water delivered on farm.” The salt content of the water was analysed and found that it applies 2400kg of sodium chloride and 700kg of magnesium chloride per hectare

each year. “We over-water at each application to remove any soluble salts that have accumulated on the soil surface when water evaporates,” MacLaughlin says. The farm applies five tonnes of gypsum/ha each year to reduce the damage caused by excess magnesium. The applied sulphur converts magnesium to highly soluble Epsom salts which washes out of the soil and the released calcium helps to balance the calcium/magnesium exchangeable cation ratio. “We then only need to apply potassium to grow huge volumes of pasture,” he said. The pastures are mostly self-sown kikuyu and white clover with a good dose of fiddle dock and perennial rye. The 30ha of irrigated pasture is divided into 36 fixed paddocks, one being grazed each day of the year in a fixed rotation. Milking cows graze in summer and

then young stock graze in winter to prevent pugging. The herd is offered the whole paddock each day close to midday when sugar levels in the plants are highest. They remain on the same pasture for 24 hours to take advantage of the higher sugar content of kikuyu stems that fill with mobilised reserves in preparation for new leaf growth. Nitrogen applications are kept to a minimum, giving the clover a head start with its own N fixing process and forcing the kikuyu to scavenge for any surplus N being excreted by the cows. MacLaughlin says the long grazing interval forces the kikuyu to lift its growth points above the ground as it starts to shade itself – something clover never does – causing maximum damage to the kikuyu plants when grazed. Last December, near the peak of the growing season, MacLaughlin said

Mike MacLaughlin on his farm in Western Australia.

he measured the pasture at 36 days regrowth and found it had grown 3.4 t DM/ha with an average crude protein content of 24.9% and metabolisable energy level of 12.1 MJ/kg. Measured again at 42

days they had grown 4.4 tonnes of DM/ha with an average crude protein content of 15.6% and metabolisable energy level of 9.8 MJ/kg. They can run six milking cows and followers per

hectare on the irrigated pasture and harvest 2t/ ha MS. “We have measured 22t DM growth per hectare and at the same time harvested 25t DM when measured at the vat outlet,”

MacLaughlin says. He attributed his ability to harvest more than they grew to feeding at peak pasture sugar levels and having efficient feed conversion through the cows.

Rising phosphorus levels have a significant impact on NZ waterways & your fertiliser and effluent dispersal strategy. Annual soil analysis (pH, salinity, chloride, phosphorus etc.) is the key to devising effective salt reduction strategies. Realise your irrigation targets by annually applying Gypsum across the entire farm to combat sodium and improve soil structure. Talk to your farm advisor to learn more about the benefits of Gypsum.

DAIRY NEWS NOVEMBER 24, 2015

EFFLUENT & WATER MANAGEMENT // 23

Know the soil, run effluent systems well BALA TIKKISETTY

KNOWING THE soil has always been the basis of good farming because the soil is the foundation of the production system. And for modern dairy farmers a good understanding of soils is even more important because the soil is also the basis of the effluent treatment system. Knowing the soil conditions and how they vary during the year can help deliver practical benefits including maximising the use of nutrients in effluent and preventing contamination of groundwater and waterways. Soil properties such as texture and structure determine the amount of water and nutrients that can enter and be retained in a particular soil, and the rate at which excess water goes through that soil. Infiltration rates, water retention, drainage characteristics and consequent leaching losses of nutrients from effluent depend much on these properties, and they vary over time as a result of weather and farming activities. The risk of surface runoff will be significant if application is not matched to infiltration rates or if a farm is irrigating onto already saturated soils. Treading damage during grazing, especially in wet conditions, can affect the effluent infiltration rate. So it is best to take extra care with winter grazing in your effluent area, and avoid irrigating a paddock that has been damaged until the soil recovers. If in doubt, dig a hole before irrigating and check whether the soil is loose and open or dense and compacted. Especially regarding runoff: suspended solids in farm dairy effluent can accumulate on and just below the soil surface, creating an organic layer that temporarily acts as a surface coating. Although infiltration rates are then reduced to very low levels the effect is generally transient, lasting about a couple of days. Using low application rate equipment will help to reduce this risk. Once again you can check this by digging a hole and looking closely at the soil

condition. Another issue is that relatively dry soil contains large pores open at the surface. When irrigating in these conditions, effluent can be rapidly transported below the root zone by a phenomenon known as ‘bypass flow’. This type of bypass flow can occur especially in soils that undergo shrinkage and fissuring during drying, especially when these soils have been compacted by treading. High leaching losses of nutrients can result from this. That’s one reason why the regional council has rules limiting effluent application depths. Farmers should therefore protect soils from grazing damage in wet conditions, especially in the effluent block, and check the soil condition by digging a few holes as the effluent irrigation season begins. Then you can schedule effluent irrigation to suit soil and climatic conditions. To achieve this, storage facilities with enough capacity are needed. Minimise the risks of drainage and runoff by applying small depths of effluent. Irrigators with low application rates will help reduce these risks. There are some important rules to follow on land application of farm dairy effluent: ■■ Untreated effluent should not be discharged or allowed to run into a drain, stream or river ■■ Effluent ponds, storage facilities, feed pads and standoff pads must be sealed to prevent seepage ■■ Feed pads and standoff pads must be at least 20m from surface water Irrigation must not exceed a depth of 25mm per application or result in more than 150kg of nitrogen being applied per hectare per year. In my experience, farmers have been taking a real interest in understanding their soils more to help them manage effluent better. We all win if they’re successful at that. • Bala Tikkisetty is a sustainable agriculture advisor at Waikato Regional Council. Tel. 0800 800 401.

Soil is also the basis of effluent treatment system.

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Shirley and Tony Brown own a 550 cow farm out in Pirongia, Waikato. When it came time to build a new pond, the question they asked was: how do we keep the costs down? Effluent machinery is expensive, but is there an alternative way to manage effluent solids? CAUSE vs SYMPTOMS: Through a chance meeting in 2012, the Browns met Liz Russell, the founder of EnviroSystems in the UK. They learned that pond crust and sludge are merely the symptoms of the real problem and that the cause of these

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solids are microscopic creatures living below the surface. These anaerobic bacteria separate the effluent fibres and send them to the surface to form the crust and to the bottom to form the sludge. How do you beat these solid-causing bacteria? By putting counteractive bugs into the pond. These corrective micro-organisms are called Aerobic Bacteria – SLURRY BUGS. Slurry Bugs eat effluent fibre – it’s their food. And if sufficient numbers of Slurry Bugs are in a pond eating the effluent fibre, the raw materials needed to make the solids are removed. That means no crust/sludge can develop. It’s a “prevention is better than cure” approach. The Browns decided to put Slurry Bugs into their new pond from the outset. The result? After 5 months, the Brown’s effluent pond remained crust-free and sludge-free. Before you buy expensive machines, read more about the Brown’s success with Slurry Bugs. Go to www.slurrybugs.co.nz

DAIRY NEWS NOVEMBER 24, 2015

24 // EFFLUENT & WATER MANAGEMENT

Gypsum helps mitigate flow of nitrates into waterways.

New from Plucks Engineering One of our latest model Pond Stirrers V Only 1.1kW driving a 1.0 M Ø blade V Two year warranty on the new type of motor and planetary gear box V New to the world of agriculture – the latest in five-lip sealed bearings V No greasing required – ever! V All bearings and seals above the water line

Gypsum can help mitigate losses in runoff GYPSUM CAN at least partially address

many hydrological and chemical factors that influence the loss of phosphorus and other nutrients from farms to waterways, says a Canterbury company. Centre for Sustainable Agricultural Technologies Ltd says gypsum has shown efficacy in phosphorus mitigation over a range of soil types and conditions. It says attention should be paid to applying sufficient gypsum, allowing sufficient time for it to take effect, mimicking realistic rainfall conditions and to establishing sensible criteria for soil, slope and waterway characteristics when choosing appropriate study sites.

The company quotes Winstone, an importer of Australian gypsum, as saying the benefits of gypsum in soil treatment go beyond the above points. Gypsum also helps mitigate the flow of nitrates and phosphorus in waterways and can be used to address the issue of sodium from applied effluent, the company says. It also helps reduce surface runoff and drainage loss, reduces preferential flow of water run-off in soil, and assists with addressing high soil potassium levels. “Rates vary per farm and soil type; applications can last for up to three years and can be used as a base layer in stand-off pads,” the company says.

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GYPSUM HAS long been used as a soil conditioner and fertiliser but only recently has gypsum’s potential for reducing farm runoff to waterways been researched, says Centre for Sustainable Agricultural Technologies Ltd. Gypsum (CaSO4.2H2O) can improve soil aggregation through calcium induced flocculation of particles and sulphate induced leaching of excess sodium. Such effects can reduce surface runoff volume by improving water

Best of all, the price is still the same!

Before

infiltration into soil. Improved stability of aggregates reduces the potential loss of soil particles to waterways over and through soil. The calcium ions can also increase precipitation of phosphate ions either directly as calcium phosphate or indirectly by increasing availability of aluminium ions. Increased ionic strength of soil solutions due to dissolution of gypsum may also increase adsorption of phosphate ions and organic matter to soil particles.

After

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DAIRY NEWS NOVEMBER 24, 2015

EFFLUENT & WATER MANAGEMENT // 25

Solar power within reach of Queensland farmers RICK BAYNE

USING SOLAR energy

to partly power farm irrigation systems may be now within the reach of Australian dairy farmers, according to a new report. Commissioned by Queensland Dairyfarmers and completed by The Energy Guys, the report is said to show that solar photo-voltaics (PV) can pay off depending on a farm’s cost of electricity and pattern of demand. The report is called ‘Feasibility of Alternative Energy in Irrigation Systems’. The solar system would need supplementing by grid power and its success may also depend on farmers changing how they irrigate. The results were revealed at an alternative energy field day at John Bradfield’s dairy farm on the Southern Downs near Allora in Queensland. Bradfield’s 27ha centre pivot irrigator was used in weighing up solar PV as an energy source. Energy Guys’ spokesman Nick Bullock says the technology and systems are there for solar PV to be used. “We wanted to get figures to see if it is way off the scale, but it’s not far off. PV with grid is out there and within the realms of realism. The key is having the confidence to change the way you irrigate and still achieve the water requirements. “We’re not talking about a small investment, but if you look at it as the long-term power source for your irrigator, and the kilowatts it is going to use, it can be attractive.” Bullock says the use of solar PV – plus the grid –

for irrigation systems will be fairly common within 10 years. “There will be systems out there, not fully replacing but offsetting some costs of irrigation. We’ve got to break through people’s perception that it’s not feasible.” The trial compared the energy use of Bradfield’s irrigation system with using solar PV. Bullock says if Bradfield continued to irrigate as he does now – 24-hour pumping four days on/ four days off over summer – solar PV wouldn’t be economical. “But if he changed the way he irrigates, and if he irrigates when solar PV is available and can be supplemented by grid power, then the project stacks up much better and is probably worth doing. If he continues to irrigate overnight it won’t work.” Bullock says many farmers have tried to use off-peak power for irrigation. “If you’re using more overnight power the payback will be longer. Anyone interested would have to look at their own set-up and costs. [By using it] you’re hedging your management costs by investing in your own power plant which is going to cost 6-12 cents over 25 years.” But solar PV could not work alone; it must be connected to the grid. “We looked at it as a standalone operation, but on the ‘shoulders’ morning and evening it’s not going to run the irrigation plant on its own.” The other option investigated was solar PV with batteries but the cost would be

POWER BILL ■■

$70,000-$90,000 to install a 45kW PV system (average Australian household system is 3kW)

■■

Payback period: 6.5-9 years (depending on power tariffs and irrigation practices)

■■

Cost per kilowatt hour (kWh): over 25 years the energy generated would cost 6-12 cents/kWh compared to 43c/kWh and 15c off-peak (Bradfield’s current rates).

$300,000-$350,000 with a payback up to 15 years – unreasonable at the moment. “It would be a stand-alone system offgrid so you’d need a bank of batteries and a bigger system – probably a 99kW peak system.” Bullock says sunny

Solar power can be a cost-effective way to offset energy costs, providing you can make the initial investment.

Queensland is ideal for solar PV. “There would still be some offset in southern states, but the total kilowatt hours generated there is less than Queensland. The biggest difference is the substantial reduction in generation over winter.”

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DAIRY NEWS NOVEMBER 24, 2015

26 // EFFLUENT & WATER MANAGEMENT

Liquid gold deals to fertiliser bill EFFLUENT, PROPERLY used, can wipe thousands off the annual fertiliser bill, observes the distributors of Slurryquip – Webbline. For years seen as a nuisance, the contents of an effluent pond are now recognised as valuable nutrient, the company comments. It cites the experience of Ikawai Dairies, near Waimate, which bought a Slurryquip umbilical system and soon could see a “huge benefit” – present and future. Farm spokesman Ben Smith says before they bought the system they were discharging effluent via pivots and K-Line pods. But blockages took time to fix and grass growth suffered. Webbline sales manager Glen Malcolm claims that compared to other methods of effluent discharge the Slurryquip can move large amounts of slurry in a short time. Take a 20,000L tanker for example: at three loads per hour this equates to 60,000L/hour discharge, versus the Slurryquip’s discharge rate in excess of 200,000L/h. Ikawai Dairies tractor driver Perry Henriksen agrees. “I’m amazed at the

The Slurryquip umbilical system can move large amounts of effluent quickly.

The Slurryquip on Ikawai Dairies is set up with nearly 2km of hose.

volume we move with this unit,” he says. “It’s taken me a few days to get the hang of the process. Because this block hilly I’m learning to use it mainly on the hills, which is more difficult than operation on the flat. “We have five ponds between the farms, collecting effluent from 4000 cows so that is serious volume of effluent. The Slurryquip is set up with nearly 2km of hose (6 inch and 5 inch) then discharged out through a 9m

dribble bar. “Recently we’ve been discharging on steep hills and I’ve been pumping about 1.5km with a lift from the pump to outlet of up to 100m, and even then we’re still achieving nearly 200,000L/h discharge. Compare this to applying on the flat: we’re getting more like 230,000 – 250,000L/h. This is impressive when we’re running the pump on a 150hp John Deere 6920.” Also impressive, Perry says, is the

thickness of the product they can pump. “One of the ponds had a crust thick enough to walk; we put the NC stirrer from Webbline into the pond and were able to stir up everything and pump it out.” Says Malcolm, “You can add to a Slurryquip system at any time. For example, we can set up a basic unit with a 800m hose for no more than $100,000, so a dairy farmer or contractor can lease a basic system for a little over $20,000 per season. Then as time or funds permit you can add to

it – more hose, GPS systems for proof of placement, etc. “If you need more hose you buy another reel to carry it on as the reel lifters are interchangeable, so you can be running several reels of hose and need only one lifter. And distance is no problem: we had a client who earlier in the winter had set up with two pumps – one at the pond and one pump inline – and he was pumping 3.5km from the shed to the runoff block and still discharging 100,000L/h. Tel. 0800 932 254 www.webbline.co.nz

CONTROLLED. SUSTAINABLE. COST EFFECTIVE. A Mono™ HSE dairy effluent pump can offer considerable cost savings by eliminating the need for a series of pumps when pumping over a long distance or high head. In some situations it can also mean not having to go to the expense of upgrading the existing power supply, with the potential to save you thousands.

HSE Animal Effluent pumps – the very heart of your effluent irrigation system. For more information visit your local Mono dealer or call Mono Phone 0800 659 012

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DAIRY NEWS NOVEMBER 24, 2015

EFFLUENT & WATER MANAGEMENT // 27

Floating hose buoys EFFLUENT HOSES

are made easier to drag around by Hose Buoy (right), an NZ-made gadget that clamps to the hose. It is made by CeeMee, a maker of plastic barrier systems. The buoy also prevents hoses snagging on trees

and posts. Fitted near cam-locks it protects them by keeping them off the ground and it acts as a guide to the whereabouts of hose joints – handy for visiting fert spreaders and contractors. The buoy fits 50mm effluent drag hose and is made from the same high

density material. It serves as a highly visible indicator that can be seen from a distance. Each unit comprises a two piece shell 360mm long and 180mm diameter at its widest point, with each half secured by 50mm zinc plated nuts and bolts. www.ceemee.co.nz

Go with the flow Liner Systems for Dairy Effluent and Irrigation Ponds

GLOCKEMANN PUMPS provide an

easy way of moving water where there is no power, or where the need for monitoring stationary engines is a headache, because they use the water itself to do the job. With a design that only needs around a half metre of head, the pump is placed in a stream or river, and collects water through a drive tube and delivers it into the diaphragm chamber, and then exits via an exhaust valve. The water pressure against the valve slams it shut, allowing the water pressure in the diaphragm chamber to increase, which distends the diaphragm and moves the piston forward in the piston bore, which forces water through a nonreturn valve, and up the delivery pipe. At the end of the push stroke, and when the energy is spent, pressure drops in the chamber, and the exhaust valve springs

open, and a strong return spring pushes the diaphragm back to its original position. The piston returning in the bore draws in water via the lower non-return valve, and the cycle repeats itself. Construction of the main housing is cast iron, with remaining components being stainless steel, and a diaphragm made from a piece of tractor inner tube type material. Dependent on the amount of head required to push the water to the storage tank a range of interchangeable piston tubes are available, with the narrowest delivering up to 200 metres head. The product is low

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DAIRY NEWS NOVEMBER 24, 2015

28 // EFFLUENT & WATER MANAGEMENT

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SMART & RELIABLE PERFORMANCE SMART REEL COMBINES ALL THE ATTRIBUTES THAT SURPASS OTHER EFFLUENT IRRIGATORS ❱❱ Computer controlled diesel drive for exact speed and application rate. ❱❱ GSM connection available for remote monitoring and control. ❱❱ Low operating pressure possible due independent drive. ❱❱ ‘Zero Pressure’ drop slurry boom option. ❱❱ Constant applications below 6mm possible. ❱❱ Small enough to operatre with 4WD ute. ❱❱ Max irrigated width 75-80m with gun. 50m @ 3bar gun pressure. ❱❱ Hose coiled on drum at run end for easy shifting. ❱❱ Excellent for growing crop or minimising damage on new pasture.

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THE MANAGEMENT of dairy effluent provides many opportunities for dairy businesses in Australia. The Holman family of Gippsland, Victoria, has met the challenge of effluent application on a steeper property through expanding their application area by installing a mainline last year, and are starting to see the benefits of improved pasture growth. The Holman property is located at Loch in the Strzelecki Ranges, and has some steep slopes across part of the farm which makes the pumping of effluent particularly challenging. The dairy operation milks about 400 spring calving cows. Manure from the yards is collected into a solids trap and a 50,000L sump. The sump is pumped daily to pasture using an effluent pump via a 1300m mainline and a gun irrigator. Expanding the effluent application area has enabled better use of the nutrients in the effluent, particularly potassium and nitrogen. The gun irrigator is moved around every couple of days and Holman has noted: “I’m able to apply nutrients now to areas of the farm that were difficult to drive over and apply fertiliser to and we’re really able to see a response.” The effluent was tested and in one megalitre contained 232kg of potassium, 95kg of phosphorus, 22kg of sulphur and 200kg of nitrogen. This is equivalent to around 0.46 tonnes of potash and 0.43 tonnes of urea and 1 tonne of single superphosphate with an approximate value of A$1015 per megalitre (prices are a rough guide to illustrate value of effluent). Each year approximately 7.4 megalitres is generated on the property with a fertiliser equivalence value of around A$7511. Reducing the on-going maintenance cost of the effluent system is also needed to gain the most value from the nutrients in the effluent. Management challenges for the Holmans’ effluent system include

Farmer Andrew Holman, Gippsland, Victoria.

being able to generate enough pressure at the irrigator and managing solids so they don’t create blockages in the pipes. Holman used a plumber to size the mainline to ensure it was the right pressure rating for the steeper property to ensure pumping efficiency and reduce the risk of splitting pipes. Solid material from the effluent is removed by a trap but some solid material does enter the sump which gets agitated and applied daily to pasture. He notes that having the ability to flush the mainline is important to remove solid material if it does get pumped through. Placing hydrants at 50m intervals for the first 200m of the mainline then 100m after that is something he would do differently next time to enable ease of flushing. Holman also removed the foot

valve on the effluent pump (which is immersed on a pontoon) to allow effluent in the line to drain back to the sump when turned off to flush the pipe. The mainline has also been buried to protect it from stock trampling, and to help reduce blockages by keeping the pipe cool over summer, reducing the baking of manure inside. Two posts and horizontal rails have been placed around the hydrants to protect them from stock and machinery. He prefers managing the effluent on a daily basis. “At the end of each milking the effluent is gone; it’s not another job that I have to do. There are no excavators, tankers or weeds on dams to deal with later.” These are the benefits of a direct application system; however it can be difficult to manage these systems when conditions are wetter.

DAIRY NEWS NOVEMBER 24, 2015

EFFLUENT & WATER MANAGEMENT // 29

Savings from prized Oz effluent rig FAR NORTH

Queensland dairy farmer Dennis Byrnes expects a new effluent irrigation system to pay off in a variety of ways. Byrnes, from Yungaburra on the Atherton Tableland, has connected his liquid effluent to a solid set irrigation and travelling irrigator. Already he’s seeing the benefits it’s having on his pastures, enjoying a reduction in his fertiliser costs, and reducing the risk of nutrients building up in the soil potentially leaving the farm and entering the local waterway. On top of that he’s won a Reef Programme award for his initiative. The work was done as a subsidised project with the Reef Programme which integrates incentives and agricultural extension to improve adoption of agricultural practices that deliver water quality benefits in the Great Barrier Reef Lagoon catchment. It cost A$23,000 and Byrnes expects to recoup his costs within three years. “We’ve got solid set irrigation and with a bit of modification we were able to put the effluent through. It worked quite well,” he said. “We had most of the infrastructure there; it was just a matter of putting in some pipework and connecting it and changing some sprinkler and nozzle sizes to suit.” Byrnes said the effluent was a wasted resource if it couldn’t be utilised. “It’s better than just flooding the area and we’re already getting benefits from it. It’s only been a couple of months but we’ve seen a difference in the pasture growth. The benefit of putting it directly on your pasture is outstanding. We expect over 12 months we’ll see an increase in production.” The reduction in fertil-

iser costs is already starting to kick in. “We worked out we’ll save A$7000 a year on bought-in fertiliser,” Byrnes said. “Prior to putting it in we used to get a contractor in to pump it out, and that came at a cost. It won’t take long to pay it off.” The farm uses tropical pastures suitable for the local environment, including clover, ryegrass and chicory. He milks 430 mainly Holsteins off an effective dairy area of 160ha with three-quarters of the land irrigated. About 25ha is being covered by the new effluent system and will be targeted for intensive production. The family has been on the land for 60 years but like many farmers in the region Byrnes is battling low prices that he says restrict the ability of farms to upgrade facilities. “There were 200 farmers here before deregulation; now we’ve only got about 48,” he says. “We’ve always gone with the theory that it should get better as we go along. Things weren’t too bad until they introduced the $1/L milk. Because we’re a fresh milk supplier it really affected us. There’s no real chance of getting any decent price increase while that’s happening.” Byrnes added the subsidy through the Reef Programme had helped to make the infrastructure upgrade possible. It’s been a timely addition that should lead to better production, which is already going well. “At the moment they’re averaging 28L,” he says. “We calve year-round so that’s pretty good. “This is our peak season and we’re going okay. We had a bit of a slow start and didn’t get much rain until February. It’s been reasonable up till

now but we’re coming into our dry time until November.” Byrnes admits he’s “pretty chuffed” about the award. “We supply Lion and we’ve won a few quality awards over the years,

but nothing like this.” The Reef Programme awards acknowledge land managers who implement innovative or best management activities to enhance water quality for the Great Barrier Reef.

Queensland farmer Dennis Byrnes.

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DAIRY NEWS NOVEMBER 24, 2015

30 // EFFLUENT & WATER MANAGEMENT

Dig deep to sort water supply integrity NATASHA MAGUIRE AND LEON SPURRELL

MPI demands farm dairy water meets set standards.

Pluck’s Traveling Effluent Irrigators: r Meet even the toughest New Zealand Effluent Enviro Standards

Applied Depth – No Overlap Test 1

Test 2

–20

–16

–12

–8

–4

Distance (m)

human poo (eg E. coli) – should be numbered. This issue is like those faced by grubby food take-aways and restaurants. The consumer can’t be there to see how clean your shed so it makes sense to reduce risks to human health from nasties such as E. coli in water. • The authors work for Farm Medix Ltd

REMEDIAL FACTORS method can empty a drum of chlorine in a few hours. To comply, the method used must comply by dosing the water and have a means of measuring; it must also include all water in the shed, including hot water, not just the tub.

Consider each factor to help in your water exclusion remediation. ■■ Supply: is your supply worth treating? Can you use an alternative source of water? Is the supply contaminated? ■■

Sediment can be a big problem in river and dam takes. A settling tank can help remove heavy sand and reduce cost of filtration.

HIDDEN COSTS ❱❱ Obvious costs – monthly penalties - $ price set to rise.

■■

E. coli: consider your options; the treatment method of the oxidant should involve minimal operator intervention and the handling of chemicals is a factor. UV light is seldom effective in high volume applications, where colour is an issue or where water is stored. Consider costs in event of a water leak: a liquid chlorine dosing

■■

Contact time: treating water takes time. Size the tank after treatment to suit your plant use. The tank should be big enough to complete all operations during milking. There is merit in treating all shed water (rather than just plant wash water).

■■

Integrity of water storage: ensure your storage tanks cannot be contaminated by birds, runoff or rain after treatment. Secure all lids and repair cracks.

■■

Point of use: perished rubber hoses harbour bacteria. Replace rubber hoses at point of use.

Test 3

•••• •• • • •• •• • • • • • • • • • •• • • • • • •

Depth 4 0 –5 32 mm 01

For many years you have got away with some aspects and the fines imposed have meant it was cheaper and easier to pay fines than to fix problems. But the sustainability of NZ as a world class dairy producer – making a premium product used in human (including baby) foods from water containing bacteria found in

It also prevents damage from silt and sand in lines, trough valves and taps.

❱❱ Hidden Costs - Wash down water containing high levels of bacteria increases mastitis cases by providing nutrients for flies and bacteria that cause the disease.

r Have a Rain Rate of 5mm or less across total wetted width, not just the centre area. (please see in the independently proved graph)

turbidity (haze, sediment or cloudiness in the water) or colour (could be from leaves and dirt in streams or iron in water). In some cases your water source is considered a risk (due to open surface water takes or water from natural sources such as rain, streams, or dams, even where no E coli is found).

■■

❱❱ Penalty Grades for Bactoscan/E coli/ Thermodurics - 20% for first level gradeincreased grading risk by using bad water.

r Have the Most Even Rain Cover over wetted width in New Zealand by far

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IMAGINE YOU are new on a property and your dairy inspector has tested your farm dairy water and placed you on temporary water exclusion, or perhaps you have been on water exclusion for years. Monthly fines are adding up; you know you have to do something about it, but what? Or maybe you’ve tried but have failed your test? A sustainable solution to your water quality issues may begin with revamping how you collect and store water for the house, dairy shed and stock, but where do you

start? It’s worth getting it right; failure to comply means more monthly fines and retesting costs. You can’t make a ‘sow’s ear into a silk purse’ and shortcuts or tricks will cause you to fall short of what’s required and force you to revisit the problems. Also, the extension of penalty reimbursements makes this a great time to sort things out: you may be able to do it more easily than you think. MPI demands that water meets farm dairy water standards because of food safety imperatives. Your water may fail because of E. coli (bacteria from the poo of warm blooded animals) clarity/

•

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DAIRY NEWS NOVEMBER 24, 2015

MACHINERY & PRODUCTS // 31

General set to take charge MARK DANIEL markd@ruralnews.co.nz

POLARIS INDUSTRIES,

the specialist in off-road vehicles, has added to its side-byside product range the Polaris General. The vehicle, best described as multi-purpose, is powered by a 1000cc ProStar engine offering great performance for trail and sport riding, and its payload of 498kg gives it class leading ability onfarm. A new cabin design sees factory-fitted half doors with armrests offer better shelter from mud, overall protection and easier access for the driver; dual bucket seats are comfortable and give plenty of legroom. Thin-film technology under the seats keeps the driver dry, and all floor seams and channel runs are sealed to keep water out of the cabin area; removable

plugs in the floor pan aid easy washing out. The instrument binnacle moves with the steering column, and storage for tools extends to 23L in the dashboard and centre console. The latter doubles as an armrest, provides storage and carries the obligatory pair of cup-holders. For overall comfort and performance the vehicle offers an 81 inch wheelbase, dual front ‘A’ arms with

31cm of travel and rear suspension with 33.5cm travel. Impressive ground clearance of 30.5cm allows access to the toughest terrain and is enhanced by a full underbody bash-plate To

Multi-purpose Polaris General.

keep the vehicle moving, close ratio all-wheel drive kicks in instantaneously as required, reverting to 2WD when no longer required. This combines with the EBS engine braking system for coping with descents, and a close ratio electronic

power steering system comes as standard on all models. Thirty new items designed for the General include windscreen, roof and rear panels, and clever attachment systems for tools. The Polaris General is offered in three specifications from the base model in Indy Red to the Velocity Blue with low profile bumpers, HD winch and 14 inch aluminium wheels. The range topping Deluxe Orange Burst mirrors the Velocity Blue, but is further enhanced by Fox adjustable shocks, a sports roof and high end sound system with eight speakers. Expect deliveries from the second quarter of 2016.

Tractor sales dip THE NEW Zealand tractor market

remains affected by the depressed dairy economy: overall sales are down about 14% on the same period last year. Tractor and Machinery Association (TAMA) president Mark HamiltonManns says “certainly dairy payouts have impacted traditional sales. However, many customers are now choosing tractors with less-expensive options to ensure plant replacement continues”. Dairy-dominated markets have seen fewer tractors sold: Waikato was down 19%, Taranaki 36% and Southland 31%. Says Hamilton-Manns, “Although we expect tractor sales will lag behind last year, we are confident the buoyancy in viticulture, beef and sheep and contractors will ensure we finish the year strongly with around 3200 unit sales. “Marlborough’s booming viticulture sector alone has created industry growth of 7% and we expect this will mean demand for tractors.” He says despite the reduction in overall numbers TAMA member companies keep introducing new products and investing in parts support and technician training.

www.polaris.co.nz

Effective effluent dispersal for enhanced sustainability Our slow-absorbing sewage treatment tanks and irrigation systems help improve soil, reduce pollutants, and decrease the costs involved in running your farm. To find out more contact your local merchant or visit rxplastics.co.nz

DAIRY NEWS NOVEMBER 24, 2015

32 // MACHINERY & PRODUCTS

Global baler maker on a roll

New Roll-Belt series has 20% greater capacity than previous models.

MARK DANIEL markd@ruralnews.co.nz

NEW HOLLAND clearly

knows how to produce variable chamber balers: it has at least 235,000 machines worldwide. Its new Roll-Belt series replaces the BR 7000 series, from which experience it claims capacity increases up to 20% and bales with density higher by around 5%. The Roll-Belt 150 and 180 models have 1.5 and

TR AILED PL ANTER 8-ROW NX WINGFOLD • A folding, pull-type frame – The advantage of the pull-type frame is that it can be used with lower powered tractors. • Four wheel units – This pull-type frame is equipped with 4 hydraulic wheel lifts. • High capacity fertiliser attachment with FertiDriveVM – for easy and rapid adjustment. • Easy adjustments and operating – All planter functions operate from the tractor cab using a function selector.

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1.8m maximum bale diameters respectively, and can be supplied with the standard SuperFeed or CropCutter rotors. Up front the 2.3m pickup area is completely redesigned, using five solid tine bars carrying reinforced rubber tines said to be 10% stiffer laterally; they last up to five times longer and help increase working capacity by up to 20%. At the rear of the pickup a new feed assist roller clears the area and merges the crop centrally to match the width of the bale chamber. Users can specify the non-chopping SuperFeed rotor with a 455mm diameter and ‘W’ shaped feeder fingers or the 15 knife CropCutter variant for fine chopped bales.

and the belt surface is selfcleaning in difficult conditions. Bale density has been increased by adding a second hydraulic density control cylinder, which results in up to 5% greater density than the previous series machines. All models are supplied net-only as standard, though they can also add twine to increase versatility. The twine feed system has been improved to include a twin feed layout said to help maintain bale shape, and CropCutter models now have a repositioned net feed for faster cycle times; the machines can carry two spares rolls of net. Control of the machine is ISOBUS compatible which should allow fin-

Bale density has been increased by adding a second hydraulic density control cylinder, which results in up to 5% greater density than the previous series machines. New to the Roll-Belt series is a drop down floor under the rotor area which allows the clearance of any blockages from the tractor seat so baling can continue unhindered. The variable bale chamber is made up of four belts 273mm wide, which create a large contact area for optimal bale formation. The absence of belt joiners precludes stretching and ensures good bale shape,

gertip control of set-up, operation and bale count management. Completing the new look are single-piece side panels which are locked for safety, but open wide for easy access and maintenance. A power cut-off switch fitted to the drawbar allows shut-down of the baler’s electrical system to ensure safe net change or maintenance. www.newholland.co.nz

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DAIRY NEWS NOVEMBER 24, 2015

MACHINERY & PRODUCTS // 33

Swather’s rotors are electric powered MARK DANIEL markd@ruralnews.co.nz

PREMIUM TRACTOR

maker Fendt used Agritechnica ’13 to show its X-concept tractor with conventional hydraulic and pto systems, but an electric generator delivering 130kW to the rear of the machine to power implements. So no surprise that visitors to the 2015 event heard of Fendt’s plans to produce a four-rotor swather that could make the most of this new power source.

With a 12.5m clearing width, the Former 12555X is unique in having each of its four rotors powered by an electric drive unit – no need for gearboxes and driveshafts and with advantages over mechanical or hydraulic systems. The system has the potential to individually adjust the speed of each rotor irrespective of engine revs or groundspeed, or perhaps increase the speed of, say, just the front rotors only. The system is said to be quiet, it needs less maintenance as there are fewer

greasing points, and it can cut fuel use by 10-15% compared with conventionally driven machines.

Except top see pre-production machines in late 2016. www.fendt.com

Fendt’s planned four-roto swather.

40,000 cows say they prefer a Redpath clear roof shelter … if cow’s could talk

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DAIRY NEWS NOVEMBER 24, 2015

34 // MACHINERY & PRODUCTS

Town meets country as 100,000 flock to Canterbury A&P Show MARK DANIEL markd@ruralnews.co.nz

THE ANNUAL Canter-

bury A&P show is seen as the gateway to summer,

so it’s good to see there’s still a place for town meets country and this year was no different with 100,000 people passing through the turnstiles over the three day event.

Even the weather couldn’t stop visitors; a bone-chilling 9oC on Wednesday was followed by rain on Thursday, before Friday showed signs of summer and the

Vintage tractors made an appearance at the show.

carparks began looking full. Given that the region’s north is enduring a drought it was encouraging to see livestock numbers holding up; cattle entries were up 10%, giving plenty of work for the handlers washing, blow-drying and primping their charges for the show ring. The heavy metal fans weren’t forgotten either; a multitude of local machinery dealers showed high tech items with a lot of zeros on the price tickets, and low cost items that make life a bit easier onfarm. General feeling amongst the trade was business had been good so far with tractor sales holding up, though some dairying areas had showed

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Stock being groomed before the parade.

Canterbury A&P is staffed by 550 volunteers who keep people, livestock and exhibitors on track throughout the day. One such stalwart, president Nicky Hutchinson, scored a double by becoming the show’s first female leader

Farmers were interested in implements on display.

since the show began in 1863, and she was honoured by Christchurch City Council with a civic award for her work over the years in helping to put this event on the to-do list of many people – town or country.

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