We could have done better – Fonterra. PAGE 4 ALL-ROUNDER Handles many tasks PAGE 33
MARCH 29, 2016
BACK TO BASICS Pasture is king PAGE 24
ISSUE 353 // www.dairynews.co.nz
ON THE ROAD TO RECOVERY Fonterra bosses say EU milk production is slowing, giving hope to a bounce back in dairy prices. PAGE 3
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DAIRY NEWS MARCH 29, 2016
NEWS // 3
EU milk seen to be slowing – Wilson SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA CHAIRMAN John Wilson says he
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is absolutely confident dairying will recover back to sustainable pricing levels for farmers. However, he says the recovery is taking longer than everyone anticipated. The key factor remains the extra milk coming out of Europe. But Wilson told Dairy News that there are signs Europe’s milk growth is slowing. Fonterra has been talking to European dairy co-ops and agri analysts, Wilson says. Over the last two years milk production has ramped up in the EU, backed by higher prices and new investment on farms. According to Fonterra’s latest global update, production in the EU in December increased 5% over the same month the previous year. The EU has seen growth in milk production in each of the nine months following the removal of quotas on April 1, 2015. Production for the 12 months to December increased 2% compared to the same period the previous year, or an increase of 3.2 billion litres. Over this period Ireland was up 13%, Netherlands 7%, Poland 3% and the UK 2%. The EU is also pumping most of the extra milk into export markets. EU exports increased 10% in November compared to the same month the previous year. Increases were seen in most of the major dairy categories with only SMP decreasing over the month. Exports have increased 7% for the 12 months to November, largely as a result of fluid and fresh dairy up 15%, whey powder and SMP up 9%, and infant formula up 7%. But now it is becoming uneconomical for farmers in some regions. Some EU countries are introducing caps on stocking rates to minimise damage to the environment. Wilson says Fonterra now supports analysts’ view that Europe’s milk production growth will slow to 1.5% compared to global demand rising by 2-3%. Demand for more milk will come from China, Asia and Africa. “Once we reach a position where demand is greater than supply, prices will improve,” Wilson says. However, he is unable to suggest a timeframe.
Fonterra chief executive Theo Spierings makes a point to journalists while chairman John Wilson looks on.
“We are still confident prices will rise but picking the exact time period is hard.” Wilson says other factors, such as US milk production and geo-political events, are also impacting milk prices. According to Fonterra’s global update, US production in January was in line with the same month
last year. While the rate of milk production growth has continued to slow, for the 12 months to January it remains up 1% on the same period last year. But most US milk is used in the burgeoning local market. @dairy_news facebook.com/dairynews
NZ MILK PRODUCTION DOWN TOTAL MILK production in New Zealand decreased 2% in January compared to the same month last year, says Fonterra. Milk production for the 12 months to January is down 2% on the same period the previous year. It says for the remainder of the New Zealand production season production will continue to be influenced by changes in farming systems, such as decreased stocking rates and supplementary feeding, as farmers respond to the low milk price environment. Australian production in December decreased 4% on the same month the previous year. Production for the 12 months to December was up 1% on the same period the previous year. However, the rate of growth continues to slow as pasture growth conditions have deteriorated due to dry weather in many dairying regions. NZ exports increased 6% in December
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compared to the same month the previous year, with increases seen in most major dairy categories, excluding WMP and SMP. Exports for the 12 months to December increased 4% on the same period the previous year. An increase of around 117,000 tonnes for the 12 months was largely driven by cheese up 18%, SMP up 7% and AMF up 5%, but partially offset by butter down 5% and WMP down 3%. Australian exports increased 1% in December on the same month in the previous year. Significant increases in cheese, up 26%, and fluid and fresh dairy, up 6%, were almost fully offset by WMP, whey powder and SMP, which were all down. Exports for the 12 months to December remain strong, up 7% on the same period in the previous year. This is largely due to SMP being up 23%, cheese up 14%, and fluid and fresh dairy up 9%.
DAIRY NEWS MARCH 29, 2016
4 // NEWS
Shareholders stand with suppliers in payment stoush SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA CHAIRMAN John
Wilson says changes to its vendor payment system could have been handled better. Wilson told Dairy News that Fonterra shareholders have brought the issue up with him. “Farmers are very aware we are trying to get all the money we can into farmers’ hands,” he says. “But they acknowledge the significant input Fonterra has across the wider New Zealand community.” In November Fonterra
wrote to about 1000 large suppliers in NZ, asking for term of payment to change from 20-30 days to 60 days. Wilson says this policy is appropriate and reflects the reality of the business. He says Fonterra has 20, 000 suppliers globally, of which 8,200 were in New Zealand. “We have asked about 15% of our vendors to change from 20 to 30 payment term to a 60-day payment term.” But he says it was never the intention of the co-op to treat any vendors unfairly. “It’s about ensuring that we run the business
Frank Scrimgeour
as prudently as possible and get the best return for our farmers. But we never intended to put these small businesses in a
difficult situation.” Waikato University professor of economics Frank Scrimgeour says it’s an appalling move and he
Fonterra has 20,000 suppliers globally, of which 8,200 are in New Zealand.
was disappointed with the country’s largest company. Speaking at the Future Farms Conference in Palmerston North recently, Scrimgeour said in the past he had not made negative comments about Fonterra but he was speaking out now. Scrimgeour says Fonterra should treat its suppliers with respect and follow standard commercial processes. “I observe people in Waikato who have supplied services to Fonterra for more than 20 years and they get ‘a Dear
John’ letter; it’s not even personalised. “They get told the bills are not going to be paid for 90 days and they face a demand to cut their price by 10%. But that’s not the way you do business; if you want to renegotiate a contract you face up to them and talk to them face-to-face. This is very bad modelling, very unhelpful for the cause of dairying, very unhelpful for the reputation of Fonterra.” Scrimgeour says the dairy industry has to face many challenges not of its
own making. Life’s already difficult but Fonterra must play the tough game and within the rules. Wilson says Fonterra has started one-onone discussion with the vendors concerned. “Yes, we could have rolled it out better; right now we are in discussions with our vendors. And our people having those discussions are being supported with better information so that there is a better understanding of what we have done.” @dairy_news facebook.com/dairynews
Earlier dividend not signalling things to come FONTERRA CHAIRMAN John
Wilson says farmers are very grateful to the co-op for bring forward dividend payments. The co-op plans to make payments in April, May and August, with the two latter payments subject to final approvals at the time; the early payments are designed to ease cash flows on farm. Fonterra usually pays dividends in April and
October, and the change this year does not signal a long-term change to that normal practice. Wilson says farmers have been in touch after the announcement expressing their gratitude. “They are happy we are trying to put money back to our farmers,” he told Dairy News. Wilson says the forecast total dividend for the current financial year
is 40c/share. The board last week declared a 20c interim dividend to be paid in April. “We intend declaring the remaining 20c/share in two dividends of 10 cents in May and 10 cents in August,” Wilson says. “The timing of these payments will help farmers’ cashflows at the time of the season when they need it most; it is a specific response to the
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challenging financial conditions our farmers are facing.” May to August are typically the most difficult financially for farmers, with lower forecast milk payments in these months, he says. “We looked carefully at the support options available to us and bringing forward payment of the total forecast dividend is the best way we can support our farmers while continuing to retain the financial strength of Fonterra.”
The two dividends in May and August are still subject to the board’s approval at the time. They are also subject to Fonterra’s financial performance continuing to support its forecast earnings per share of not less than the current 45-55 cents forecast range per share. The payments do not signal any intention to move away from Fonterra’s normal practice of twice-yearly dividends paid in April and October. They are also consistent with
$383 million by April 2016. But based on the solid performance of the cooperative in the first half it felt paying the final dividend earlier was the better option. “This approach is directly related to the solid performance being achieved by the business.” Fonterra will also continue to competitively price stock in its Farm Source stores and pass on discounts secured on necessities such as fuel and power.
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Fonterra’s dividend policy. “We are firmly on track to achieve our forecast earnings of 45-55c/share, ahead of the 40-50c/share we indicated at the beginning of the season,” says Wilson. “We are backing ourselves to support our farmers and confirmation of the first payment will be made in May.” Wilson says they had considered an extension to the support loan provided early in the season which will total
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DAIRY NEWS MARCH 29, 2016
NEWS // 5
Ingredients, added value and lower costs lift profits FONTERRA EARNINGS and profit are well
up for the first half of this financial year – based on efficiency, sales, value added to products and financial discipline, says chief executive Theo Spierings. The co-op has announced normalised earnings before interest and tax (EBIT) of $665 million, up 77% on the comparable period and net profit after tax of $409 million up 123%. Spierings says the cooperative’s strong performance reflected a sustained effort in three main areas. “We focused on the efficiency of our ingredients business and capturing demand for ingredients in a wide range of markets,” he says. “We aimed to make the most of global consumption growth by building demand for higher-value products in our consumer and foodservice markets.” Spierings says working capital improved significantly, and inventory levels are lower than in recent periods for this time of year. They are down 9% in volume due to
strong sales. Free cashflow for the six months to January 31, 2016 was $2.1 billion higher than the first half last year, with gearing at 49% down from 51% in the previous year. “We maintained strict financial discipline to keep lifting our return on capital; and our strong cash flow has enabled us to strengthen the cooperative and reduce gearing,” says Spierings. The ingredients business achieved normalised EBIT of $617 million, up 27% on the first half last year. This resulted from improved product mix returns, and the increased production and cost efficiencies from investments in plant capacity in New Zealand. “In consumer and foodservice we have delivered very good growth, with normalised EBIT increasing 108% to $241 million,” Spierings says. “We remain focused on growing demand, especially in the eight markets where we currently hold or want to gain leadership or a very strong position: NZ, Australia, Sri Lanka, Malaysia, Chile, China,
Indonesia and Brazil. These are well established markets for Fonterra, so we are working off a strong base. “The additional 235 million litres of milk we converted into higherreturning consumer and foodservice products in this six month period built on the additional 600m L last year.” Spierings says Fonterra’s farms in China are a key part of its integrated dairy business. “We are achieving operational efficiencies on the farms which are helping offset the current low domestic milk price in China.” Current global economic conditions remain challenging and are impacting dairy demand and prices. Chairman John Wilson says the supply and demand imbalance in the globally traded dairy market has brought prices down to unsustainable levels for farmers around the world, and particularly in New Zealand. The strong NZ dollar has also had a negative impact on the milk price. “The low prices have
placed a great deal of pressure on incomes, farm budgets and our farming families. “Our priority is to generate more value out of every drop of our farmers’ milk by focusing on the areas within our control,” says Wilson. “We aim to efficiently convert as much milk as possible into the highestreturning products. “Our management is aware of the need for strong performance to ensure we get every possible cent back into farmers’ hands during a very tough year. “We have lifted profitability from last season to this season, resulting in higher earnings per share to help offset low global dairy prices. As a result, we have delivered an interim dividend of 20c/ share, up from an interim dividend for last year of 10c/share. “Our forecast farmgate milk price of $3.90/kgMS reflects low global dairy prices, with whole milk powder decreasing around 17% this season to date.” The forecast total available for payout of $4.35$4.45/kgMS currently
equates to a forecast cash payout of $4.30/kgMS after retentions for a fully shared-up farmer. “The balance between available dairy exports and imports has been unfavourable for 18 months following European production increasing more than expected and lower imports into China and Russia,” says Wilson. “This imbalance is likely to continue in the short term, with prices expected to lift later this calendar year. “The long term fundamentals for global dairy are positive with demand expected to increase by 2-3% a year due to the growing world population, increasing middle classes in Asia, urbanisation and favourable demographics.” Wilson says the cooperative’s solid performance was set to continue. “The business will continue to work on capturing demand and margins in the second half of the year, just as it did in the first half, by focusing on our consumer and foodservice volumes and those of specialty ingredients. “We remain firmly on track to achieve our forecast earnings of 45-55c/
Fonterra is converting more milk into higherreturning consumer and foodservice products.
share, ahead of the 40-50c/ share we indicated at the commencement of the season. “Our net debt is $6.9 billion and we are expecting this to reduce significantly in the second half of the year. We are on track to reduce gearing to 40-45% by the end of the current financial year.” The record date for the
interim dividend is April 8, and the payment date is April 20. The cooperative will continue to offer a dividend reinvestment plan, at a discount of 2.5% to the strike price. Eligible shareholders who want to participate for the interim dividend need to submit a notice of participation by April 11.
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DAIRY NEWS MARCH 29, 2016
6 // NEWS
Working to achieve more with less TIM MACKLE
RIGHT NOW many
dairy farmers are looking at their costs line by line.
B&DEL0026A
Tim Mackle
delaval.co.nz
Where can they make further savings? The latest re-forecast milk price from Fonterra now puts this season’s farmgate milk price at
$3.90/kgMS. DairyNZ’s breakeven figure for the average New Zealand dairy farmer is $5.25. That’s a big gap to bridge. Around 85% of the
14,000 owner-operators and sharemilkers affected by the low milk price are not making money this season. They are forced to build up more debt and erode their equity to get through another season of looking after their cows. The situation will impact on the people they employ and the rural businesses they support. At times like these DairyNZ has to deliver more value than ever for farmers. Our industry’s heritage of pulling together and taking a co-operative approach to challenges gives us a strong mandate, as did our last levy vote in 2014. But it comes with the need to stand alongside farmers and deliver real and tangible value that makes a difference to their businesses, individually and at an industry-wide level. To help farmers we’ve been running our Tactics campaign and other key events for some time, designed to home in on cost creep and provide access to tools and support to make changes in their business. DairyNZ has always maintained that the ability to efficiently harvest pasture is the best determinant of profitability across all farm systems. Pasture still provides the least expensive feed for dairy cows and remains the foundation of our farm systems. That has been our constant message and is at the heart of our advice to, and research for, farmers. It will continue to be our message. Pasture and the ability to turn off supplement use is also the foundation of how we are able to manage volatility and farmers are using this mechanism strongly. Farmers are using the obvious levers at their disposal to manage volatility in milk price – culling cows instead of using supplementary feed to maintain cow condition. In terms of our long term research and science
objectives we can’t just turn off the tap. Two of our most important research projects, for example, are seven-year investments – one focused on developing forages for reduced nitrate leaching to future-proof our industry. The other is researching cow fertility and lifetime productivity. Taken together, these are estimated to cost the dairy industry $1 billion annually. The profitability of dairy farming could be increased by $500 million per year if industry targets for reproductive performance were achieved. These targets will not be achieved using current knowledge and technologies alone. A biological breakthrough is required. The aim of this project is to accelerate genetic gain in fertility and manipulate the biology that underpins cow fertility. But as stated above, we cannot easily switch research on and off, given our requirement to keep achieving results for farmers. If we do, the Government will also stop funding us. However, we are looking at what research projects can be pared back for now, so as to reduce our costs. I am accountable to our farmer-led board for how $67 million of levy funds from dairy farmers delivers value for the investments the board prioritises and approves. Farmers are also keen to hear the value they get from this large sum of money. As production drops, so does our own income, although not to the extent of farmers. The levy is not a fixed cost; it is pegged to farmers’ business in terms of milk production, being set at 3.6 cents per kgMS. The board has not relaxed any of our targets. It is expecting more from less, as I know farmers are too. • Tim Mackle is the chief executive of DairyNZ. @dairy_news facebook.com/dairynews
DAIRY NEWS MARCH 29, 2016
NEWS // 7
Jail time for 1080 scaremonger DAIRY INDUSTRY
leaders have welcomed the successful prosecution of a businessman who threatened to spike infant formula with 1080. Jeremy Kerr, the owner of another pest-control product, Feratox, mixed highly concentrated 1080 with baby milk formula and posted them to
Fonterra and to Federated Farmers. Included in the package was a letter demanding the country stop using 1080 or he would release poisoned infant milk powder into the Chinese market and one unspecified market. He was jailed last week for eight and a half
Canterbury farmers Brent and Sharon Trafford.
Suppliers eye added value ON THE Canterbury plains there’s a sea change
underway in dairying, a challenge of something new that has led Mid-Canterbury dairy farmers Brent and Sharon Trafford to join the revolution and become a2 milk producers for Synlait. At the end of this season the Trafford’s will join 200 other suppliers to Synlait’s Dunsandel factory Farmers supplying only a2 milk are growing in number: three years ago Synlait had three suppliers who were a2 only; in the new season that will rise to 65. When a2 began to attract public attention a few years ago the Traffords were interested in it, but with no incentive for farmers to produce it, a2 lost momentum – though the Traffords remained keen. With Synlait offering a premium of 20 cents extra per kgMS, all that has changed. By the start of the next season the Traffords will have around 750 a2 only cows on their 225ha farm. Synlait’s Mark Burnside says a2 milk demand is growing; most of Synlait’s production goes to Australia and the company is planning to sell directly to the US and China. All Synlait’s a2 milk is powdered for its export markets in products like a2 Platimum Infant Formula. All mammal milk is a2 milk, so it is more naturally structured to match human milk, which is perceived to be more tolerable to humans. The benefits of a2 milk are yet to be clinically proven, but word of mouth has driven impressive demand Burnside says. In Australia it commands about 10% of the liquid milk market. Synlait is doing long-term research on the benefits of a2 milk. It gets LIC to DNA test all cows in the a2 programme, and all progeny, getting a test result in four-six weeks. So far LIC has tested 60,000 cows. Synlait also randomly tests the milk to make sure there are no mix-ups and to ensure the integrity of the product. The company organises annual get-togethers of all its a2 farmers so they can meet and share ideas. About 43% of the New Zealand dairy herd are naturally a2 cows so becoming an all a2 farm is not as difficult as it would first appear, and cows only need be tested when a farm is about to start production. Brent Trafford says they are excited about the change, having found Synlait good to deal with and believing in what they are doing. – Richard Cosgrove
years by Justice Geoffrey Venning, who said the potential impact of his actions on New Zealand’s trade relationship with China and others was “extremely serious”. The threat is believed to have cost Fonterra nearly $20 million and cost Federated Farmers nearly $100,000.
In his victim impact statement, Feds chief executive Graham Smith said Kerr’s actions were “a direct threat to the very fabric of society”. The threat could have led to an international ban on NZ food products, he says. “The 1080 threat had the potential to devastate
our ability to successfully operate within these markets and would have cost the country billions of dollars. Customers would have stopped buying and using our products due to their immediate safety concerns.” There was a potential threat to all sectors of society, given NZ’s
reliance on primary industries, Smith says. Fonterra chairman John Wilson said Kerr’s actions were deplorable and had a huge impact on the cooperative and other food firms. Fonterra’s Maury Leyland says the threat had a big impact on Fonterra and it staff.
“It’s hard to imagine a worse threat to children and families, or to the viability of our co-operative, the wider dairy industry and our country,” said Leyland, who is Fonterra’s outgoing managing director of people, culture and safety. @dairy_news facebook.com/dairynews
DAIRY NEWS MARCH 29, 2016
8 // NEWS
Newcomers scoop award RELATIVE NEWCOMERS to farming have
scooped the big prizes at the 2016 Hawkes Bay/ Wairarapa Dairy Industry Awards. Mark and Jaime Arnold were named the 2016 Hawkes Bay/Wairarapa Share Farmers of the Year at the region’s annual awards dinner held at Masterton War Memorial Stadium last week. The other major winners were Lance Graves, the region’s 2016 Dairy Manager of the Year, and Nicholas Bailey, the 2016 Dairy Trainee of the Year. The Arnolds have no farming background and first set foot on a dairy farm in 2008. Mark (48) managed a logging crew and Jaime (35) was teaching. They have been 50% sharemilking 500 cows on the Dannevirke farm owned by Mike and Sherynn Harold, and Stuart and Sandra Cordell since 2011. The couple, who had entered the awards twice previously and finished runner-up last year, won $11,600 in prizes. “Dairying is such a supportive industry, so it is great to be a part of it,” Mark Arnold said. “From entering the dairy industry awards we know exactly what drives our profitability and how our low-input system is
resilient. It has made us focus on our goals and how we can achieve them and it has helped us to highlight what we are driven by. “We also see the benefits of networking and getting our name out there to build a good image for ourselves so that it could open up job opportunities.” Their goals are to continue farming in the Tararua district, to reduce debt and start buying equity in a dairy farm, and to achieve a healthy work and life balance. “In later years, we want to give our four children the opportunity to grow in the industry and to buy shares in our business.” The region’s Share Farmer runners-up are Carterton contract milkers, Adam and Rebecca Giddens, aged 27 and 25 years, and who won $8000 in prizes. The New Zealand Dairy Industry Awards are sponsored by Westpac, DairyNZ, DeLaval, Ecolab, Federated Farmers, Fonterra, Honda Motorcycles, LIC, Meridian Energy, New Zealand Farm Source, Ravensdown and industry partner Primary ITO. Entering the awards has helped the 2016 Hawkes Bay/Wairarapa Dairy Manager of the Year, Lance Graves, to grow his business – Graves Grazing.
Joe and Suz Wyborn.
Hawkes Bay/Wairarapa Share Farmers of the Year, Mark and Jaime Arnold.
Graves (26) buys 100kg calves to rear and then sell as in-calf heifers. “This business is important to us in assisting us to reach our goals in the near and distant future.” Employed by Willy and Sally Bosch as a herd manager overseeing 315 cows on the Martinborough farm owned by Jenny Tucker, he won $7500 in prizes. His first goal is to go lower order sharemilking or contract milking by 2018 and to progress to 50% sharemilking by 2021. His ultimate goal is farm ownership. This is only Graves’ second season in the industry; he was formerly an auto mechanic. He is focused on operating a low cost profitable dairy business. “What is the point of being in business if you are not making a profit?
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Having low operating costs allows you to make ends meet and ensure the business continues to progress regardless of the payout.” Maraekakaho farm manager Lewis Knauf (29) was second in the Dairy Manager competition, winning $4900 in prizes. Third place went to Waipukurau farm manager Ray Johnson (34) who won $6050 in prizes, as he also won three merit awards. The 2016 Hawkes Bay/ Wairarapa Dairy Trainee of the Year, Nicholas Bailey (21) is hardworking and outgoing and likes to achieve results. “I also like to help others to reach their potential and learn more so they can progress in their career.” He is assistant manager for Robert Hartley on Bryan Tucker’s 950-cow Greytown farm. He won
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$7050 in prizes. His short term goal is to progress to a farm manager or contract milking position; longer term he plans to go sharemilking or enter an equity partnership. Bailey is a New Zealand Football accredited referee and oversees Wellington regional games and games in the national youth league. He is also involved in Young Farmers. “Entering the awards has helped me to get some new experiences, especially in the interview, and enabled me to meet new people and test my knowledge.” Second place in the 2016 Dairy Trainee competition went to Carterton herd manager Ben Bosch (19) who won $4300 in prizes. Pahiatua farm assistant, Logan Mott (21) was third, winning $3700 in prizes.
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Winners show how well it can be done GERALDINE SHAREMILKERS Joe and Suz Wyborn are the supreme winners of the 2016 Canterbury Ballance Farm Environment Awards. They also collected a string of category awards, including the WaterForce Integrated Management Award, LIC Dairy Farm Award, Massey University Innovation Award, Hill Laboratories Harvest Award and the Environment Canterbury Water Quality Award. Described by BFEA judges as representing “everything that is positive about the New Zealand dairy industry,” the Wyborns have been 50:50 sharemilking on Grantlea Dairy No 1 – a 253ha irrigated property east of Geraldine – since it was converted by owners Leighton and Michelle Pye in 2009. The Wyborns had been dairy farming together for only three years when they started on Grantlea, but the Pyes’ confidence in the couple had been fully justified, BFEA judges said.
“They are extremely focused on developing and articulating processes and systems that allow the farm to run efficiently.” While each partner has defined roles – Joe oversees day-to-day operation of the farm and Suz is in charge of calf rearing and finance – the Wyborns work as a team and their prudent financial management and strong production have helped them build their business remarkably quickly. “They are extremely focused on developing and articulating processes and systems that allow the farm to run efficiently,” judges said. Up to 910 cows were milked on the 220ha (effective) farm last season, producing 411,000kgMS using a system 3 regime. Driving this is sound pasture management and efficient use of water. Two centre-pivot irrigators service all but 4.5ha of the farm. A lot of vegetation was removed during the conversion but the Wyborns and Pyes worked hard to mitigate this loss by shelter planting. Originally from England, Joe first worked for the Pyes in 1998 as a driver in their agricultural contracting business. In 1999 he took over management of the contracting operation and this experience has helped shape how he and Suz now run the farm. Judges said the Wyborns demonstrate excellent staff and people management skills. Health and safety is a priority, and a detailed farm operating manual allows staff to run the farm “safely and effectively unsupervised”. Judges also noted the couple’s “outstanding adoption of technology and web-based tools to assist in farm management”. “They monitor and measure, but most importantly they make full use of data in their decisions.” Judges also praised the Wyborns’ industry and community involvement. A BFEA supreme-winner field day will be held on Grantlea Dairy No 1 later.
DAIRY NEWS MARCH 29, 2016
NEWS // 9
$77m formula market beckons co-op FONTERRA IS eyeing a slice of the $77 million infant formula market in New Zealand. The co-op this month launched its Anmum infant formula through Pak n Save and New World stores. Fonterra Brands NZ managing director Leon Clement says Anmum is a $200 million brand in Fonterra’s Asian markets with a track record of quality and trust among parents. “Anmum draws on Fonterra and its legacy companies’ 50 years of experience in dairy research and in producing paediatric formulas for third parties. Bringing Anmum to NZ families means we are now providing nutrition for key life stages,” he says. Fonterra says it sees breastfeeding as the best source of nutrition for babies, but also recognises that families may need an alternative. “The Anmum formula range will provide
that,” says Clement. “It is a trusted brand internationally… and we want it to be one of the top three brands in the $76.9 million formula market in NZ.” Fonterra paediatric nutrition staff developed the products. The co-op’s R&D centre in Palmerston North is home to expertise in probiotics and lipids in infant development and the management of digestion in infants. Fonterra Brands regulatory and nutrition manager Cherry Barker says the Anmum formulation includes Fonterra’s own patented Bifidobacterium lactis DR10TM cultures, and the Anmum PediaPro toddler milk has no added sugars. “Breast milk is the gold standard for developing alternative nutrition products, when necessary, for infants. Formulas for 0-12 month old babies are subject to clear regulations. This includes ensuring that the sugar content, needed for energy, reflects
the natural lactose levels found in breast milk,” she says. “Anmum formulas only use lactose, the sugar naturally present in all milks, in the formulations for this age group. We do not
add any sugars to our toddler milk and believe that this is something that is important to parents.” Clement says paediatric nutrition is the fastestgrowing dairy category in the world and developing
leading positions in paediatric nutrition is one of Fonterra’s seven strategic paths. The range will be blended and packed at Fonterra’s Canpac site in Waikato.
Fonterra Brands NZ managing director Leon Clement with Anmum infant formula now available here.
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cows may soon be available on farm. LIC Automation says it is trialling and early results are encouraging. The co-op’s automation chief executive Paul Whiston says data obtained from cows via camera imagery can be added to the herd recording service Minda. “We hope to release the new technology at the National Fieldays; the LIC stand will be busy this year,” he told Dairy News. LIC Automation was formed in June 2015 follow- Paul Whiston ing the co-op’s takeover of milk sensor technology firm Dairy Automation Ltd in February 2014 and a decision to merge it with the co-op’s automation business Protrack. LIC Automation makes integrated and innovative systems, aimed at improving productivity onfarm, says Whiston. It recently bought 75% of Beacon Heat Detectors Pty Ltd, Australia, a maker of heat patches to help farmers identify cows on heat. @dairy_news facebook.com/dairynews
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DAIRY NEWS MARCH 29, 2016
10 // NEWS
Focus on cows and save money TOUGH ECONOMIC
times are causing farmers to analyse every aspect of their business, right down to the performance of individual animals.
Zelda de Villiers
And Dairy Women’s Network (DWN) and LIC are working together to host free workshops to help dairy farmers learn how to make better herd
management decisions. Dairy Women’s Network chief executive Zelda de Villiers says the partnership with LIC is a first for the organisations.
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“Those attending will be given tools to help them make more informed decisions and save time, and will get to share their dairy farming experiences with other women on the course and enjoy learning from them. LIC national solutions manager Michelle Adam says farmers are set on making efficient decisions about their individual cows and their herds as a collective asset.
the second on April 13 in Ashburton, Canterbury. Each runs for four hours. They will cover ‘understanding your herd’ and ‘reviewing your herd’s reproductive performance’ using LIC’s Minda herd records service. Ninety per cent of New Zealand dairy farmers use Minda for management reports to maximise the benefits of their herd improvement. The first workshop
“Those attending will be given tools to help them make more informed decisions and save time.”
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“Having access to timely information and reports on animal and herd performance, and knowing how to analyse and use the information, can make all the difference to improving productivity and decision making. We are looking forward to working with farmers to help them master these vital skills.” LIC is coordinating the 10 workshops nationwide in April, May and June with DWN. The first will be on April 12 in Inglewood, Taranaki,
session will explain core principles of breeding and help demystify key industry metrics. The second session will give an overview of the Minda reports and tools that help farmers analyse their herd’s reproductive performance. Registration on the day is from 9.30am; the workshops start at 10am and finish at 2pm. Morning tea and lunch are provided. www.dwn.co.nz @dairy_news facebook.com/dairynews
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This is what a late lactation herd test can save you. It can save you giving supplementary feed to cows that would be better dried-off. It can save you treating low-producing cows that you will end up culling. It can save you treating healthy animals with antibiotics that they don’t need. It can save you having good cows with high SCC going untreated into dry-off. It can save you guessing and it can save you time. But above all it can save you, in very real terms, money. Which is probably no bad thing these days.
If you want to find out more on how herd testing can help you save, talk to your FSM.
DAIRY NEWS MARCH 29, 2016
12 // NEWS
Nothing is getting simpler STEVE SPENCER
PROFOUND CHANGES in the overall
structure of dairy markets and trade could have lasting effect. It might not be the greatest time to focus on this – just while we’re bouncing around at the
bottom of a deep commodity pricing cycle, or ‘super-cycle’ as it is now being called. But it’s worth spending time considering whether the dairy industry is merely travelling though the roughest parts of a deep trough that will slowly right itself, or whether these are
early days of fundamental change in the structure of the global industry. There’s been a quick reshaping in the imbalance of trade. In the past two calendar years major exporters clocked a surplus of 2.5b litres, and 2016 will see only a small part of that surplus eroded unless
Steve Spencer
some major weather or market shocks occur. But behind those numbers, some of the fundamentals are shifting, with biggest changes on the supplyside. It is naive (and really early) to pass off the effects of removing the quota cap from European dairy farmers as a subtle
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adjustment in volumes as has long been forecast by the EU’s own ag officials. Competitive farmers in several countries with pent-up productive capacity are unleashing their potential and moving to more efficient operating models. Their companies have laid down the stainless steel ahead of the surge, because no-one expects it to be temporary. EU processors and traders have muscled up with higher volumes of ingredients to market into the world. The product volumes from the additional 7b litres of exportable milk supplied in 2015 and likely in 2016, added to the loss of the Russian market, have encouraged the Europeans to be more aggressive, expanding their market share elsewhere. But there will be plenty of casualties within the EU in the massive adjustment to come. Small uncompetitive processors without a spread of markets and products – and their suppliers – are already doing it tough and that will get worse. Many small traditional farmers will painfully subsist, burn a lot of tyres and drive their tractors large distances, and get cash out of frightened politicians, but gradually exit under the stress of volatile margins and rising compliance costs. But the net effect, at least in the short-term, will be that Europe’s milk supply will expand. Meanwhile NZ dairy’s ability to sustain the faith of bank and equity investors will be wearing thin with a third poor price year next season. Growth was projected on the back of a Chinese appetite that was expected to roar on for a decade or more. Many of the recently established, highly geared farms carry the greatest exposure to the cycle, but while banks would be unwise to call their debt in, it means further investments in farm expansions or conversions will be harder to finance. While Europe is likely to expand to its natural physical limits, NZ may struggle to grow and, sadly, some efficient operators might go out during this phase. If banks act on conventional non-ag priorities, land values are at risk
and a deeper problem for the industry will develop. Not much to see in the US in comparison, as it will probably chug on and keep expanding. But with a flat home market, all of the growth has to find markets elsewhere. The profound change going on within that industry is one of reskilling and retooling plants to get more value out of every litre, and producing products that meet customer rather than regulatory requirements. They’ll keep getting better at that game. The composition of the demand side for traded products has rapidly restructured. South East Asia, the Middle East and North African are the largest export regions. They might in the past have plodded along with growth tracking changes in regional GDP, but in 2015 these countries collectively bought four times more product than China. China is now a vastly different prospect to what it was. Long gone are the days of a market where overall dairy demand was growing at 6-10% per annum; now growth is reported to be less than 2%. Important niches are developing in that market. Chinese consumers who can afford higher priced nutritional dairy ingredients are seeking greater access to imported finished product. Other changes are also shaping demand and supply. If Russia comes back from the chill to buy Western foods any time soon, it will be a much smaller buyer with poorer consumers and dodgy credit. Latin America once played a much bigger role in trade – balancing product needs across the continent and gradually increasing exporters. But three major countries – Brazil, Argentina and Venezuela – are now politically and economically more turbulent than ever, sure to discourage significant inward investment. Nothing is getting simpler out there. Buckle up. • Steve Spencer is a director of Fresh Agenda, a Victoria dairy consultancy.
DAIRY NEWS MARCH 29, 2016
NEWS // 13
Is that a market recovery looming? JOHN DROPPERT
RECENT GUIDANCE
suggesting that farmgate milk prices for those in southern export regions are likely to remain around the A$5.60kg/MS opening price mark have confirmed what many farmers had quietly suspected. With dairy commodity prices around 30% lower than prior-year levels and 7% below where they were at the start of the season, the market recovery required to meet some of the more optimistic forecasts still appears some way off.
Australian grain farmers has accelerated in recent weeks as growers look to generate cash to cover seasonal interest and fertiliser payments. With the international market considered likely to remain depressed, reduced export pressure will help moderate any price rebound once this period passes. With dry conditions and expensive irrigation water contributing to lower pasture production on many farms, hay demand has been higher than usual for most of 2014 and 2015. With supplies (particu-
Given the likelihood that farmgate pricing will remain under pressure, it’s worth taking a look at the situation for inputs, to assess whether any margin of relief is on the horizon on the cost front. Given the likelihood that farmgate pricing will remain under pressure, it’s worth taking a look at the situation for inputs, to assess whether any margin of relief is on the horizon on the cost front. Let’s start with grain. Feed grain represents around 30% of the average southern exporting region farm’s total costs, according to the Dairy Farm Monitor Project. Grain prices tracked above the five year average for most of 2014 and 2015. Smaller Australian harvests combined with strong export demand to tighten supplies. The first months of 2016 have seen grain prices falling however. This is likely due in part to the effects of record global wheat stocks weakening global prices; however Australian grain has been trading at a premium to the world market for some time now, suggesting local factors are also in play. The most recent crop estimates by the Australian Bureau of Agricultural and Resource Economics and Sciences put total wheat production for 201516 up 5% compared to the previous season, at 24.2 million tonnes, and barley up 4% to 8.5m tonnes. In addition to weak global prices and increased production, selling by
larly of protein hay) under pressure and stocks tight for much of this period, prices have remained above the five year average. As has been the case with grain markets, some relief for buyers has been noted at the start of 2016, as milder weather and rainfall in many regions boosted pasture availability. Many farmers have also completed stocking their sheds for the season, and others stopped buying as higher prices proved uneconomic. Tasmania and Gippsland have been among the exceptions; fodder demand in these regions remains strong. Assuming average rainfall for the autumn period, fodder is likely to be less of an issue through the remainder of the season, as top-up purchasing occurs in a market where increased pasture production weighs on demand and prices. According to the Bureau of Meteorology, the December-February period has seen a gradual decrease in rainfall deficits across many dairying regions (southwest WA has seen much more rain than average). Northeast Tasmania, south-west Victoria and west and south Gippsland remain drier than average,
incurring the attendant extra fodder and water costs. The outlook for the coming three months suggests further improvements are likely, with the chance of exceeding average rainfall around or above 50% for all dairying areas except for central and northern Queensland.
John Droppert
El Nino is well past its peak, and climate models predict that a neutral pattern will resume in late autumn or early winter. In the meantime, El Nino could still contribute towards the expected below-average rainfall across northern Queensland. On the other hand,
warmer-than-average sea surface temperatures may result in localised warmer weather and increased rainfall, particularly in Tasmania. For those in irrigation areas, water pricing and allocation has been a further significant source of cost pressure this season. This looks set to continue
in the short term, with fierce competition keeping the average price for temporary water high. However, low availability and reluctance to sell is being indicated by relatively few parcels (mostly of small size) being traded. • John Droppert is a senior analyst with Dairy Australia.
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DAIRY NEWS MARCH 29, 2016
14 // NEWS
Don’t plan a move to sheep milking PETER BURKE peterb@ruralnews.co.nz
A WARNING to dairy
farmers: a move to sheep milking is probably not an option. An organiser of a recent sheep milking conference, associate professor Craig Prichard, of Massey University, says sheep milking is never going to come anywhere near replacing the bovine industry. He says a Taranaki farmer called asking what sort of sheep milking oper-
ation he could run on 100ha. “I said ‘you’re asking me the wrong question’. I asked ‘where is your market, where is your processor and who are you going to sell your milk to?’ Often people in the bovine industry are so used to having someone take their milk. This farmer was asking the wrong question. “Everyone in the sheep milking business has to solve the market and the producer problem first. They must ask, ‘where is my market and who am
Sheep milking is never going to come anywhere replacing the bovine industry, says Craig Prichard.
Craig Prichard
I going to sell to?’ That drives the production process. In the bovine industry they do not think market first; they are a supplier driven industry.” Prichard says every bovine dairy farmer in NZ struggles to see their market; it’s an institu-
tional problem. He says he knows of many dairy farmers who say the industry is not connecting with customers. “On the other hand the sheep milking industry is putting customers right at the core of it and they are the ones who are going to
drive this sector.” Prichard says the sheep milking conference had good science presentations and showcased where the industry has got to in a relatively short time. @dairy_news facebook.com/dairynews
Synlait has taken in more suppliers.
More suppliers join Synlait CANTERBURY MILK processor Synlait has taken on 28 more milk suppliers to meet growing demand for its value added milk products. “The calibre of new suppliers is impressive and complements our existing supply network,” says managing director John Penno. With 201 suppliers now, Synlait says greater customer demand for nutritional products and more production capacity with a new large-scale spray dryer has created the opportunity. The business could not accept everyone who wanted to be a supplier and now has a waiting list. Since production began in 2008 at the Dunsandel site eight suppliers have left, four because of a change in farm ownership. “We have one contract for all milk suppliers that is a rolling three year agreement, providing certainty to ourselves and our suppliers. Our relationships are sustainable because we’re all focused on making more from milk and offer everyone the same terms,” Penno says. Synlait’s Lead With Pride and Special Milk programmes (which create products like the a2 Platimum Infant Formula ) reward suppliers for differentiating their milk and creating value on farm through a premium payment in addition to Synlait’s milk price. Synlait says the premiums aren’t a solution to the current pricing pressures, but they help. “We expect around $6 million in premium payments will be made this season. More than 50% of our suppliers will be paid a premium,” says Penno. “If you take an average of that payout at $60,000, all of it will be welcome to any dairy farmer in the current climate.” – Richard Cosgrove
New sales head at Gallagher’s MARK DANIEL markd@ruralnews.co.nz
DARRELL JONES has been appointed national sales
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manager of Gallagher Group’s New Zealand animal management team. He has worked 14 years with the company. He started in 2001 as a territory manager for Bay of Plenty and South Waikato, and became regional sales and key account manager in 2013. The company says Jones sees enduring partnerships as critical to the animal management division’s success. He knows that long term relationships with customers cannot be taken for granted. “Trust is a Darrell Jones long time earned but can be lost overnight, so we strive to act integrity and respect every day,” Jones says. Despite the effect of the Global Dairy Trade price index on the rural economy, Jones remains positive. “It’s definitely not all doom and gloom. Three regional field days have clearly shown that other farming sectors are performing well. “We also showcased our Flashmate heat detection device to the dairy market, highlighting the financial benefits to farmers in tough times.”
DAIRY NEWS MARCH 29, 2016
NEWS // 15
Northland water quality ‘good news story’ PAM TIPA pamelat@ruralnews.co.nz
INVESTMENT IN
dairy farm effluent systems and stock exclusion have shown good results in Northland and are a good news story, says the Northland Regional Council. The council has recently analysed Northland’s water quality data which shows steady improvement over the past 5-10 years. Colin Dall, manager regulatory services, says the council has reviewed three regional plans – air quality, coast and water and soil – analysing historical water quality data. “This information has helped us to consider new policy and rules or changes to existing policy and rules on discharges/ water quality and water takes.” At the recent Northland Dairy Development Trust Conference, council staff outlined its proposed approach to the updated regional plan. They stressed that, though the water quality results are promising, there is still room for improvement, especially in reducing sediment and pathogen levels in rivers and estuaries and nutrient levels in some lakes. The council may change some rules on dairy farm discharges – specifically minimum pond sizes if discharging to land. The requirement to divert roof water away from effluent systems is also being considered in order to minimise untreated and poorly treated effluent discharges to water, particularly during winter. Council staff told Dairy News at this point there is no real shift proposed in the rules, just a tightening up of some conditions. They believe 75% of dairy farmers in Northland are performing well but about 25% may be affected by this particular rule. Staff acknowledged there is a lot of community pressure to implement stock exclusion rules.
They advised that the current water and soil plan is silent on stock exclusion and there are few restrictions on stock access to Northland’s water bodies. Rather than creating a new set of rules, the council will look at including the rules of the Sustainable Dairying Water Accord in the new regional plan. Another initiative being looked at is phasing in stock exclusion requirements on drystock farming in intensively farmed lowland catchments. This is consistent with the recent recommendations of the Land and Water Forum. The new regional plan is also required to include limits on water allocation (in accordance with the National Policy Statement for Freshwater Management) – the total volume of water that can be extracted from a water body. The new regional plan may mean some farmers may require resource consent to take water for dairy shed use. The current requirement in the regional plan is you can take up to 10m3 per day during summer and up to 30m3 per day during winter as a permitted activity. But council staff say they may look at adjusting those volumes in some areas to help to protect reliability of supply for water users, and to protect the environment. These new rules will be tested in a draft regional plan before moving into the formal submissions process. Just as importantly, the council will be looking for comment on areas it is not intending to regulate, including: Not including limits on nutrient inputs or losses from farms, as the issue with nutrients in Northland water bodies does not appear to warrant such an approach Not limiting animal numbers on farms, as there is no clear environmental or financial justification to do that. The council is also looking to
continue to provide the taking of water for reasonable stock drinking needs Not prohibiting discharges of treated effluent to water altogether, but at certain locations and under some circumstances
there may be a need to be more restrictive rules. As in any RMA process, the Environment Court or a higher court could overturn a council decision. However staff say they
are working with DairyNZ who are helping test the science that will underpin the plan, which will be backed-up with robust monitoring and reporting. A draft regional plan will be released soon.
Improvements to effluent systems in Northland have helped lift water quality.
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DAIRY NEWS MARCH 29, 2016
16 // NEWS
Corporate farmers scoff ‘rumours’ THE OWNERS of one
of New Zealand’s largest dairy operations, the Van Leeuwen Dairy Group, say the operation is alive and well. Adriaan and Wilma van Leeuwen told Dairy News by email from overseas
that the South Canterbury business is not in receivership, as rumoured. They also had heard this rumour, on RNZ National radio, but say it is “false”. The group has 12 holdings and 12,000 dairy cows, and is the
world’s largest robotic milking farm. Last year it expanded by installing 24 Lely robots in three barns of 500 cows each. Adriaan and Wilma also made the Rich List last year with wealth estimated at $65 million.
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Velvetleaf is causing concern in some regions.
Aad and Wilma van Leeuwen
Pest weed wreaks havoc THE FIGHT is on against the pest velvetleaf.
Considered a serious cropping pest, velvet leaf has been found in fodder beet crops in Marlborough, Waikato, North Canterbury and Central Otago. The Ministry of Primary Industries is investigating how this has occurred; it appears likely to have come from imported fodder beet seed. “All farmers who have planted fodder beet seed should check their crops carefully for signs of velvetleaf,” MPI says. “Those who have planted Kyros or Bangor varieties should be particularly vigilant. Potentially contaminated seed has been sold all around New Zealand.” The Waikato Regional Council says it’s working with MPI on the containment and eradication of two new outbreaks of the pest plant velvet leaf in the region. The new Waikato outbreaks, at Matamata and Piopio, have been linked to possibly contaminated imported fodder beet seed, which is believed to have led to a number of velvetleaf finds in the South Island. “We became aware last week of the new infestation sites in Waikato and we’re supporting the ministry in its efforts to respond to them,” says the council’s pest plants team leader, Darion Embling. The first time velvetleaf was discovered in Waikato was in 2011 when the pest was found in maize on farms mostly in Matamata-Piako district, and one find each in Waikato and Waipa districts. The source of this outbreak is unknown. The regional council has contained this outbreak and is working towards eradication. “We’re keen to help ensure the new outbreaks at Matamata and Piopio also don’t lead to widespread problems,” says Embling. Farmers are also advised to photograph any plants and mark their location so they can be found again easily. The ministry warns against pulling up plants and says a technical expert will visit and carefully remove any plants to make sure velvetleaf seed, if present, is not spread. Velvetleaf seeds are particularly hardy. They can persist for up to 50 years and can survive digestion and silage production. Sightings of this weed should be reported to MPI on 0800 80 99 66.
NUF0033DN
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A broad-leafed weed that grows to between 1m and 2.5m (usually higher than crops)
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DAIRY NEWS MARCH 29, 2016
NEWS // 17
Aerial campaign saves crops, lifts yield RICHARD COSGROVE
AT DAIRY farmer Scott Ricketts’ Oxford farm, there’s a war going on: his crops are under attack from white butterfly so he’s called in air support to gain the upper hand. The air support is a spray boom-equipped helicopter from Way To Go Heliservices, Rangiora, flown by Matt Cruickshank. Dairy News joined the team from Way To Go as they mounted an early morning attack on the ravenous caterpillars chewing through the crops. With dairy farmers facing a tough time, every expense has to be justified and every dollar spent maximised. Though there is a perception that getting a helicopter is an expensive way of dealing with these pests, in fact it’s not true: more and more farmers are turning to the skies to optimise their returns from their crops. Ricketts says “It’s a no brainer to get the choppers in. You spend a lot of effort getting your crop to where it is, so why would you drive over it?” The non-invasiveness of aerial spraying is a key advantage over groundbased spraying. Ground sprayers and spreaders damage 5-10% of crops; some grain farmers report that up to 12% of crops sustain damage. Not so with a helicopter, and there’s no soil compaction and no risk of disease spreading from other crops as the chopper moves from paddock to paddock. You can therefore use the full growing area of your land whether you own it or lease it. Aerial spraying allows a larger area to be covered faster, and specific areas and obstacles like centre pivot irrigators present no problem. Way To Go chief pilot and chief executive Rob Kittow provided figures to show the advantage of aerial work. Taking a typical fodder beet crop that will generate $6000/ha, if
ground spraying damages 5% of a crop, that costs $300/ha. With an aerial application costing $50/ ha, and allowing for four applications per year, the cost is $200/ ha. In contrast, a ground application costing $25/ ha, for four applications, would cost $100/ha. The difference between aerial and ground appears to be $100/ha in favour of ground operations. But when you factor in an increased yield due to aerial application not damaging the crop, this shows a $100/ha advantage for the aerial operation. Other economic advantages of aerial operations, e.g. full utilisation of land, no soil compaction, no disease transfer, no plant damage to upper plants from vehicle undercarriage, at 2.5% that gains another $150/ha. Therefore a $250 gain per hectare for a 100ha crop gives an increased return of $25,000; a 200ha crop would increase this to $50,000. Back at Oxford, Kittow’s pilot and ground crew work to minimise the aircraft’s time sitting on the ground. The speed of the operation means Cruickshank can complete all Ricketts’ and his neighbours’ tasks in about two hours then head off to another spray job in the hills above Oxford. Baydon Phillips saw a major fire rip through his property late last year and has called in Way to Go to nail the weeds that have sprouted all over his land. Around 30 minutes of flying later the task is over; “job done” Philips remarked with a smile on his face. Cruickshank showed the skills and the utility of the Robinson R44 he was flying: he selected one spray boom and flew along the top of a deer fence, enabling him to get close to the boundary. Demand from Mid Canterbury farmers for the Way To Go service has led to Kittow deciding to base a machine near Ashburton.
The results for farmers have been spectacular: potato farmers report crop yield increases of 25%. Aerial work has traditionally been seen as an option only for steep hill country or hard-access areas. But flat land farmers
like Ricketts, looking at every dollar spent and keen to maximise the benefits of that spend, are realising the benefits of having a helicopter do spraying and fertilising operations on their properties.
Way to Go Heliservices pilot Matt Cruickshank in action at Scott Ricketts farm.
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DAIRY NEWS MARCH 29, 2016
18 // NEWS
Protecting peat land pays in many ways BALA TIKKISETTY
PEAT SOILS are a fragile
and important part of our lowland ecosystems that regulate water flows and quality. When managed properly, peat soils can also be a valuable, productive resource, but it must be acknowledged that use of these soils inevitably leads to peat loss and shrinkage through oxidation. A key to successful long-term farming on peat soils is finding the right balance between keeping the water table low enough for production but high enough to minimise peat loss. The Waikato region has about half of New Zealand’s peatlands, with about 94,000ha of peatlands containing about 2.7 billion cubic metres of peat. Drainage has greatly improved our ability to farm these lands but too much drainage can lead to increased shrinkage of peat soils and other environmental consequences. When peat is drained, the carbon in the soil is exposed to air. The carbon is then able to bind with oxygen in the air to form carbon dioxide, a noted greenhouse gas. It’s estimated that developed peatland releases about 1.3 million tonnes of carbon dioxide each year. Drainage of peatlands for production can also cause a reduction of water levels in neighbouring wetlands and peat lakes, which are at-risk natural ecosystems. And as peat shrinks the depth of fertile topsoil also decreases. This means that further drainage, cultivation and pasture renewal are needed to maintain productivity, increasing the cost to farmers and the impacts on the environment. If we don’t manage our peat carefully, it will continue to shrink until eventually there will be no peat left; a unique and valuable resource will be lost forever. In some areas, the underlying soils that land-
owners will be left with may have poor fertility, requiring high inputs to maintain productivity. The flood risk and pumping costs in the low lying areas may increase substantially. So how can we best strike a balance between keeping the water table on peatlands low enough for production but high enough to minimise peat losses? The right drain depth is one of the keys. Deep drains in peat cause over-drainage and rapid subsidence of peat soils. As the peat dries it shrinks and cracks, making soils difficult to re-wet. Rainwater flows down into the subsoil through cracks in the peat. When peat dries it becomes waxy and doesn’t reabsorb water easily. By keeping drains shallow, we can keep the water table high enough to protect the peat soil. Keeping the water table high in drier periods is important for pasture growth and maintaining soil quality, for peat and mineral soils. This can be achieved by putting weirs or stopgates in the drains. Better water table management will minimise shrinkage, allowing for extended summer grass growth and profitable farming of peat soils for longer. Controlling weeds in drains and fencing them off to exclude stock reduces the cost of machine cleaning drains, which can also lead to them deepening. Most silt in drains comes from stock damaging the drain banks. By fencing off your drains you’ll greatly reduce the need to machine-clean them. Keeping cultivation of peat soils to a minimum is also important. Peat is naturally anaerobic (has no oxygen present) and is very acid (soil pH <4.5). Cultivation creates a surface layer of aerated peat which accelerates oxidation and loss of the soil. The pH can be corrected by adding lime, but cultivation causes peat to shrink twice as fast as
it does under pasture. So the less cultivation you do, the longer your peat soil will last. The peat farmers’ group, with AgResearch
and other stakeholders, is organising a field day on peat soil management on April 12 at Orini, north of Hamilton. Waikato Regional Council will pro-
vide further details on this soon. • Bala Tikkisetty is a sustainable agriculture advisor at Waikato Regional Council. Tel. 0800 800 401
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DAIRY NEWS MARCH 29, 2016
NEWS // 19
New worker’s rostered time off: figure this JOHN BROSNAN
AT EVERY interview
for a farm position, a key question for an applicant is, “How much rostered time off do I get?” Your
answer can influence the job’s appeal. This is a big issue in the farming sector in today’s climate. Under the spotlight is hours worked versus the minimum wage. Time off is a key issue
facing the dairy industry in trying to attract and retain quality staff. In the past rural employers offered a weekend off every month; this at the time was considered the norm for dairy
farming. On occasions this would be offered as a three-day weekend, with one of the days designated as the rostered day, to cover any time in lieu or for any statutory holidays worked. Over time
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the rostered time off has headed towards being every second weekend. This, in part, has been due to farm workers now comparing themselves with workers in other industries. The compar-
ison often is, farm staff have 70-90 days leave per annum, compared to 110135 for employees in other industries. It was common to hear it said that the lack of time off onfarm was more than compensated by the lifestyle, but this is not always the case these days. Today farms are typically much larger concerns with far more going on – feed supplements being used, technology advancements and far greater emphasis on health and safety. Many workers may not be able to have their families onfarm so that the farm meets its obligations under the health and safety regulations. The ‘lifestyle’ aspect of farming has in many cases been eroded by mandatory business practice compliance, the introduction and enforcement of performance key performance indicators and the yearly demands of busy schedules for farm employees. So what do you do? Budget more for relief staff; how do you find regular, reliable quality relief staff? Or do you budget for additional permanent staff for onfarm simply to cover all leave contingencies? How will this work in seasons with low payouts, negative cashflows or the onset of drought conditions, which potentially can all be added into the
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mix? It’s a very tough decision and a hard question to answer! Staff costs are often seen as something the employer can have more influence over, but in reality only to a degree, as the work needs to be done, and having tired, stressed or over-worked staff and bosses helps no one. Wages are not always the largest expense, compared to some of the other essential operating costs. Having good staff can make a huge difference to how your farm runs, therefore being able to attract and keep good staff is vital, notwithstanding that having to continually recruit and train new employees also has its costs and its frustrations. The bigger picture is that attracting and retaining good people in our rural communities is crucial for New Zealand’s provincial growth. It’s not straight forward: striking the ideal balance between cashflow, operating budgets, farm productivity and maintaining an engaged motivated team is a daily challenge. In short, there is no easy answer. • John Brosnan is a human advisor at CooperAitken Accountants, Morrinsville, Matamata and Thames. Contact him at 07 889 8838 or email john@cooperaitken.co.nz. www.cooperaitken.co.nz
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DAIRY NEWS MARCH 29, 2016
20 // OPINION RUMINATING
EDITORIAL
No place for bullies
MILKING IT... Quietly quietly to Viaduct FONTERRA STAFF has moved without fanfare into its new head office on the edge of Auckland’s glitzy Viaduct area. The silent move is unsurprising given the hardships faced by farmers after three consecutive seasons of low payout. The office in Fanshawe Street brings together staff from four locations. It is leased by the co-op, having been planned several years ago when the payout was favourable.
Sign of things to come?
US RETAIL giant WalMart Stores says it will build a dairy processing plant in Indiana to supply in-house milk to about 600 stores. It is the retailer’s first foray into food processing in the US. This is bad news for US processor Dean Foods, which supplies Wal-Mart’s in-house milk. Wal-Mart confirmed that Dean Foods would continue to supply some of its in-house white and chocolate milk to other Wal-Mart supermarkets and Sam’s Club membership-based wholesale stores. The retail giant is the largest grocer in the US with at least 5000 locations. Australian supermarket giant Woolworths will be sitting up and taking notice.
Farm squeeze affects vets
THE PROLONGED low dairy payout is affecting rural vets; some are reporting 25-30% reduction in income. The fall comes as dairy farmers cut budgets, have fewer lame cows, and as more cows get culled, leaving fewer animals for vets to treat. In the past two months, work has picked up as farmers spend on pregnancy scans for dairy cows, but this is expected to drop off again. Vets say they are cutting back: stripping printing and stationery costs, pulling back on continuing education for staff, watching phone costs and even scrutinising their giving to local charities and farming groups.
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Raw milk, raw deal
NEW RULES on raw milk sales are causing an angry reaction by sellers, but the Ministry for Primary Industries says the rules are needed because of the risk raw milk poses. The rules have put several raw milk retailers out of business in recent weeks. They come into full force on November 1. Meanwhile MPI is holding workshops to help farmers comply. The rules have been subject to consultation and strike a balance between the increased demand for raw milk and its risk to human health, MPI says.
FONTERRA AND its farmer shareholders did not need this. Times are tough on farm but Fonterra farmers are ploughing on, keeping a close eye on things they can control. What they don’t need is to be bailed up at the local pub or golf club by an irate contractor eager to gripe about Fonterra’s bullying tactics. In November Fonterra sent a generic letter to about 1000 NZ contractors, asking for more time to pay its bills. But suppliers have complained of bullying, after having their payment times extended to 61 days after the end of the invoicing month. The suppliers got strong backing from many quarters; some business commentators who usually refrain from bashing Fonterra could not resist having a go at the co-op. Speaking at the Future Farms Conference in Palmerston North, Waikato University professor of economics Frank Scrimgeour said the co-op’s move was appalling and disappointing given it is the country’s largest company. Scrimgeour made it clear that in the past he has withheld negative comments about Fonterra but was speaking out now. “I observe people in Waikato who have supplied services to Fonterra for more than 20 years, then they get ‘a Dear John’ letter; it’s not even personalised. “They get told the bills will not be paid for 90 days and that the co-op demands a price cut of 10%; that’s not the way you do business. “If you want to renegotiate a contract you face up to the supplier and talk face-to-face; this is very bad modelling, very unhelpful for the cause of dairying, very unhelpful for the reputation of Fonterra.” Scrimgeour says the dairy industry has to face many challenges that are not of its own making. Life’s already difficult but Fonterra must play the game within the rules. The message got home: at last week’s half-year results announcement the Fonterra chairman read a prepared speech at the opening. He admitted Fonterra could have done a better job. “We could have had better discussion with our vendors; we never intended to put any of our small businesses in a difficult situation.” But the damage is done; this is another clear example of Fonterra failing to get its message across to the masses. Farmers want their cooperative to be a good corporate citizen. Such a heavy handed approach does little help to Fonterra’s reputation. Fonterra and its farmers prop up economies in regions and small towns nationwide; as the world’s largest dairy exporter Fonterra has around 16,000 contractors worldwide. It has a social and moral responsibility to the country; bullying small rural contractors isn’t the way to go.
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DAIRY NEWS MARCH 29, 2016
OPINION // 21
Get down and dirty, you dumb critics JAMIE FALLOON
IT’S BEEN a good summer in Wairarapa with rain at the right times to keep grass and crops going. January’s rain turned up in February but the March trend of autumn coming early hasn’t eventuated. Hot dry and dusty, all good if you own a water tanker business. Production has been good, some products
Jamie Falloon
having their best year, especially beef and wool. This and a snapping shut of wallets should keep most Wairarapa farmers in a reasonable position. Farmers need to put all this into perspective after being warned this season would be like summer 1998 – the mother of all droughts. These forecasts came from weather experts and highlight the challenge of predicting seasonal trends. You would’ve had to live under a rock, or spent the last five days in Whangamomona, to have not seen, heard or read all expert opinion on the dairy industry. Its a media trend nowadays to roll out a spokesman or consultant, usually academic, to make sensational predictions of dire consequences, but it is frustrating for farmers and creates more pressure. We’ve been blessed with these unique visionaries recalling how they warned us all, sharing their
profound industry wisdom while imparting dramatic summaries on farm viability. Many of these selfappointed philosophers can’t tell the difference between a cow and a bull, let alone know the inside of a dairy business. One ‘expert’ was promoted as having worked for New Zealand’s major dairy businesses, and then had to correct the statement about not having worked for Fonterra, which is 85% of the industry. Such people should talk only about what they know and if pursued by the media for comment, should give only constructive, unbiased commentary. A case in point: the Wairarapa Water Use project and speculation on dairy farmers’ financial viability, which would lead to banks foreclosing on many clients. The argument was that because irrigation is used for dairying, then irrigation must be stopped because dairy farming is no good. This misses the point and shows a fair degree of ignorance as irrigation is used for many land uses and where one is unprofitable another will take its place. Often overlooked too is our dairy farmers’ ability to be innovative and adaptable, hence the shift to rearing beef animals as well as milking. So a message to the ‘experts’: please refrain, this does not help farmers’ or their families’ mental state. Come to a farm instead and do a few days work milking cows. Talk to real farmers who use water and see the difference they can make rather than taking potshots from Wellington. We know how tough it is: we are living it – paying bills, complying with laws,
paying staff, spending time with family, looking after our animals and trying to keep it all together. Farmers need support more than ever; it gives us a glimmer of light at the end of a long, dark tunnel. Acknowledgement of
the effort that goes into our industry would be appreciated rather than scrutiny without regard for one’s feelings or livelihood. • Jamie Falloon is Federated Farmers’ Wairarapa provincial president.
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Rain has kept grass growing in many parts of the country.
DAIRY NEWS MARCH 29, 2016
22 // AGRIBUSINESS
Time in gumboots gives new perspective FRESH FROM two
years in the paddock as a dairy farm manager, Josh Verhoek is now back on the Ballance Agri-Nutrients science extension team. Based in Fielding, he is now Ballance’s science extension officer for the lower North Island, using his experience and onfarm insights to help farmers best use farm nutrients. “Working as a dairy manager was a challenging and eye-opening experience,” says Verhoek. “It was mentally and physically exhausting work, with a vast scope of things to understand. It puts the demands of farming into reality.” Now back on the technical side, Verhoek enjoys working with farmers to maximise the value of the
Josh Verhoek
products they use, and to introduce ideas and products from Ballance. He has a lead role in farm systems knowledge and developing Ballance’s links with sheep and beef farmers. “My time as a farm manager has helped me when advising farmers, as they know I’ve ‘been in the
gumboots’, having lived and breathed what they do, and that’s a perspective you can’t buy. “We want to give farmers every advantage we can, advising them on how to increase production by more efficient resource management.” Verhoek knows how
important it is for farmers to have confidence in an adviser. “For most farmers, working on the land means balancing production and economic priorities with regulatory requirements and a desire to protect the environment,” he says. “There is sometimes a misconception outside the agricultural community that farmers aren’t always environmentally conscious but for the vast majority of farmers that’s not true.” A graduate of Lincoln University’s agricultural science and Massey’s nutrient management programmes, Verhoek recognises the challenges farmers face in balancing livelihood with looking after the environment.
Passion for soil “They are accepting and welcoming GROWING UP in urban South Auckland seems a world apart from working as an industry and community. Farmwith South Island farmers, but for Bal- ers love sharing; you learn so much by asking them”, Robinson says. lance Agri-Nutrients’ Aimee RobinNotwithstanding ribbing by son that’s where she wants to be. farmers about her Auckland Robinson is the upper origins, Robinson finds South Island representathat her education backtive for Ballance’s science ground, industry experiextension team, working ence and interest in the with farmers in Cantercommunity has helped to bury, Marlborough and establish a great rapport. the West Coast. She “If you’re honest and advises them on raiswilling to put in time ing onfarm productivto understand their ity by more efficient and particular situations, effective nutrient mangoals and challenges, agement. For Rollestonthen they respect you based Robinson the role Aime Robinson for that. If they trust you, they’ll trust is a good fit. “Everything on Earth relies on soil; your advice.” She works with individual farmers it’s the basis for agriculture and human society. So it’s incredibly rewarding to and runs education workshops, some work closely with farmers, who are so for people working in farming, some for knowledgeable already, to continually school-age children and people in urban areas. She works to present an accurate improve the way we use the soil.” A graduate of Lincoln University, view of farming and to challenge the Robinson is MSc in soil science and BSc misconception that farmers don’t care in environmental science. She loves about the land and environment. “When you talk to farmers, it’s immeworking in the farming industry and feels welcome in the farming commu- diately clear that looking after the environment is important to them,” she says. nity.
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DAIRY NEWS MARCH 29, 2016
AGRIBUSINESS // 23
NZ ticks the boxes for Brits peterb@ruralnews.co.nz
MARK AND Julie Cressey say they have the best sharemilking job in New Zealand. They are now into their ninth season as the sharemilkers on the Rakaia Incorporation’s Tahu a Tao dairy farm, a finalist in the Ahuwhenua Trophy competition to determine the top Maori dairy farm. When the job was advertised the shareholders then on the farm told them it was the best sharemilking job in the country; the Creeseys agree. They have spent 11 of the last 12 years in NZ working on Maori farms. Their story starts in England where Mark was running the family dairy farm; they had reached a crossroads because it wasn’t sustainable and there was family politics. “We were looking at where we could further our dairying career. Dairy was what I knew and enjoyed but we didn’t fancy Europe because of all the bureaucracy and subsidies. We researched NZ via Dexel and we thought it was pretty good there and that the average operator was doing a good job. “We didn’t want to be average so we backed ourselves to be better than average; we came to NZ for six days to see what it was like.” Julie says she instigated the change. “As a family we needed to look to the future, and I got us looking overseas. We looked at Canada and were going to look at the US, then a neighbour pointed us towards NZ.” Mark says they were determined to be objective about the options but when they came to NZ they knew straight away this was the place for them. So we decided to come here. “The family didn’t take it at all well. Julie’s family were a bit disappointed to lose their daughter, but my family… had a dream of the sons being on the farm and I was the last son on
the farm. “So all the cows were sold in September, my father died in October and we left on November 1, so it was a tough time.” The first job they landed was with Wairarapa Moana, at Mangakino, a trust chaired by Kingi Smiler. The Creeseys wanted to find people who could teach them the NZ pasture system. They spent a season on another nearby farm in the King Country before applying for and getting the job at Rakaia. At the same time they sold their house in England and made NZ their home. “We love it; this is home now,” says Julie. For Mark, working for Rakaia is the perfect job. He says the Incorporation has been supportive, doesn’t interfere on day-to-day issues and has acted on their recommendations to improve some farm infrastructure including staff housing. “The support they give us, in the sense of welcoming us into their family, is absolutely great,” says Julie. “We see them only once a year, but we have always had a great day with them and a great relationship. It’s nice that they have opened their farm to us and accepted us. It works both ways because they are dealing with our culture as well.” Arriving in NZ, Mark wondered how he would motivate himself, having come from a farm that had crops and pigs as well as cows. But he says the challenge of managing pasture is great, as is seeing the bank balance grow. The Cressey’s have not stopped at their 50/50 sharemilking role at Rakaia. “We bought a farm three years ago and we have lower order sharemilker on that; they are finding it really tough. Our daughter is a lower order sharemilker at the moment. “If you understand financial aspects of the business and you are financially savvy you have to accept it – life’s tough.
We have a helluva lot more debt than we had and life’s a lot tougher for us now but you have just got to understand that.” The answer, says Julie,
is being proactive and making good decisions. The Cresseys have four years left on their contract and want to see it out. Mark and Julie Cressey.
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DAIRY NEWS MARCH 29, 2016
24 // MANAGEMENT
Farmers must learn to manage r PETER BURKE peterb@ruralnews.co.nz
A SOUTH Island farm
consultant says dairy farmers must learn to be better risk managers. John Donkers says ironically dairy farmers face up to and manage cli-
matic uncertainty pretty well, but must apply these principles to other aspects of their business. His comments came at a field day run by the proprietors of the Rakaia Incorporation, one of
three finalists in this year’s Ahuwhenua Trophy competition to find the top Maori dairy farm. “There is a school of thought that says dairy has had a pretty good run and that essentially it will be alright at the end of the day. Dairy farmers don’t seem to have been proactively managing their busi-
ness to make sure they’re alright. They need to be more active in that area and adapt existing skills to advance their business.” Donkers says farmers must manage the cost of production every day and decide whether to spend money on any given project. This includes capiTO PAGE 25
Farm consultant John Donkers.
VISIONARY EYES ON THE FUTURE THE FIELD day at Rakaia was another great event, says Kingi Smiler, chairman of the Ahuwhenua management committee which runs the trophy competition. About 200 people attended the day. Smiler says Rakaia Incorporation has huge local support and a wonderful story to tell about the history of the farm – one it tells beautifully. The story tells how they took back control of their lands after suffering during the colonisation process. The decision to convert the land to dairying was a brave one at the time and the whanau has a great sense of pride about its achievements. “Tahu a Tao is like many Maori farms which are managing the volatility in the dairy industry and still making a profit while most other dairy farms will be making losses this season. “There are a couple of key reasons for that. Maori farming is focused on intergenerational outcomes so they are not farming for capital gains and are not looking at the property market. Instead they are working and sustaining the land and deriving a yield so that they can
support each generation of shareholders so that all get some benefit from the property. “It’s a completely differently philosophy and therefore their onfarm focus on performance is there every year, not just when prices pick up.” Smiler says Rakaia Incorporation has been tight on farm working expenses and has done a wonderful job getting high productivity at low cost – superior to most farms in this region and nationwide. Low debt enables them to manage well. Maori farms generally have good sustainable farming systems which clearly work, and in these tough times Smiler expects other farmers to start adopting some of these practices. At least 800 people have recently attended the field days of the three Ahuwhenua Trophy finalists, an excellent turnout, Smiler says. The competition instills pride and mana in whanau directly involved and in Maori generally. He hopes this will help motivate them to pass this on to successive generations. An awards dinner and ceremony will be held on Friday May 20 in Hamilton. About 800 people are expected to attend.
DAIRY NEWS MARCH 29, 2016
MANAGEMENT // 25
e risk better FROM PAGE 24
tal structure and buying big assets such as tractors, cows or farms and making sure they don’t pay too much for them. “People get excited about the dairy industry when the milk price is $8.40/kgMS. Now they should be getting excited about the industry because there will be lots of opportunities. Land values are going to decline slightly and that will give sharemilkers an opportunity to buy in. It will give Rakaia Incorporation the
opportunity to buy a third or fourth farm.” Donkers sees a need for a ‘reset’ in the dairy industry – getting back to the basics of low cost production which is essentially producing grass efficiently. He says based on his 40 years in the dairy industry, he can see the farmers who are the most resilient and profitable are those doing this well. “I don’t knock supplements because they have a place. What matters is how you use them and in what quantity; not stock-
ing your farms up high and using lots of supplements, but instead optimising your business in such things as stocking rates.” Donkers, an advisor to the Rakaia Incorporation, says they take a conservative approach to their business, and have a strong balance sheet with little debt.
Visitors at the field day on Rakaia Inc farm.
THE PROPRIETERS of Rakaia Incorporation say the business will make a profit this year despite the low dairy payout. The chairman, James Russell, says this is because the farm does not hold a lot of debt and manages its operation carefully. The incorporation’s Tahu a Tao farm runs about 830 Kiwi cross cows on its 216ha property near Ashburton. The cows produced 371,294kgMS last season. The farm was converted to dairying in 1996 and has always operated with 50/50 sharemilkers. The current sharemilkers are Mark and Julie James Russell Cressey. Russell has been involved in the farm since the idea of converting the land to dairying was first raised. He says the move to run cows was a big leap of faith for the whanau of Rakaia and now he’s extremely pleased with the outcome. “I’ve been involved for 23 years. I was the deputy chair and I proposed we move into dairy. The chairman at the time passed away and I was elected chairman at the time of the conversation. It was a big leap but my family had a small dairy farm on the West Coast during my younger days and I was in another incorporation on the West Coast called Mawhera, near Greymouth.” Russell says the effort on the present farm has paid off and the incorporation has bought another farm near Culverden and is looking at buying a third farm. The management committee works hard at communication, every year inviting shareholders to a day on one of the two farms. Russell is full of praise for the farm staff – supervisor John Donkers and sharemilkers Mark and Julie Cressey – who have made the farm profitable. And he applauds the role of the Ahuwhenua competition. “The Ahuwhenua trophy is portraying that more Maoris will go into farming, be it dairying, sheep and beef or horticulture. The success of Maori agriculture is not widely known and it is up to the Maori organisations to promote that. They are not promoting it as well as they should be.” Russell says he was delighted with the turnout to the field day: it was better than they had expected.
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DAIRY NEWS MARCH 29, 2016
26 // MANAGEMENT
Making a good maize silage crop MAIZE SILAGE harvest-
ing is now underway in most regions. Most of the costs of growing a maize crop are fixed, so the higher the yield per hectare, the lower the drymatter cost and the greater the potential return from your maize silage crop. I’ve seen bumper crops this year,
but also paddocks where farmers have lost yield potential for a number of reasons. These include: Hybrid choice It seems obvious that choosing a high yielding hybrid is one of the first steps in ensuring a high yielding maize silage crop, yet every season I run into a handful of farmers who
are prepared to sacrifice yield to get cheap maize seed. At a $4.25 payout, assuming a milksolids response of 80g/kgDM fed, it adds up to paying an extra $100/ha (including seed treatment) for a hybrid which will deliver you just 295kg more drymatter yield. A hybrid which delivers 500kg
more drymatter is worth $170/ha more. Pioneer brand maize hybrid yield is increasing by an average of 311kgDM/ha per year. Newly released hybrids will almost always deliver a significant yield advantage when compared to older hybrids. Seed quality Not all bags of maize
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seed are created equal. There are significant differences in the quality of maize being sold in New Zealand. Seed which has poor germination and/ or vigour will result in uneven stands with lowerthan-ideal plant populations. An optimal plant population is critical to ensuring high maize silage yields. Genetic purity Hybrid maize seed is produced by crossing two purebred parent lines. Planted in an even paddock, genetically pure hybrid seed will produce plants which all look the same and have the same yield poten-
maize plants for sunlight, nutrients and water. Weedy crops produce less and the impact is even more marked in moisturelimited environments. The good news is there are a wide range of herbicides for controlling weeds in maize. If you are planting your paddock in maize silage again next season, spray it out with glyphosate prior to planting your winter pasture or crop. For paddocks coming out of pasture in the spring, implement a good preemergent weed control programme. Walk your crop regularly in the first few weeks after planting and be prepared to apply
Mamyzin®’s unique production process coats each particle of penethamate with an emulsifier, while our specialised manufacturing technique provides consistent, fine and high quality particle size. So Mamyzin® dissolves quickly, mixes easily and effectively crosses the blood-milk barrier for high penetration into udder tissue. Ask for Mamyzin® by name on your script… and you can confidently forecast reliable performance.
A Pioneer hybrid showing an even plant stand and good genetic purity.
Weathering the mastitis storm
tial. This season we have seen plenty of non-Pioneer crops which have poor genetic purity. Plants are variable in height and flowered at slightly different times. This impacts silage yield, grain yield and even harvest timing. Always look for a hybrid which delivers an even plant stand as it’s critical
post-emergent herbicides where necessary. Fertiliser Research has shown that maize silage can be grown on most high fertility dairy farms without the need for additional fertiliser. As long as weed control is good and moisture is not limiting, it is relatively rare to see nutrient
A non-Pioneer crop showing the impact of poor genetic purity.
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to achieving high and consistent yields. Seed treatment In achieving high silage yields every plant counts. Insecticide coating is vital, especially for silage crops planted into pasture paddocks. Pioneer’s Premium Seed Treatment offers a number of industry-leading fungicide, insecticide and bird repellent options to control soil borne diseases, insects and birds. Weed control Weeds compete with
deficient crops on dairy land. That said, always take a soil test and apply nutrients when needed. As your maize comes off this autumn, look at the crop and see if there are ways you can improve management to get an even higher yielding maize crop in 2017. Remember more yield means lower cost drymatter and higher returns. • Ian Williams is a Pioneer forage specialist. Contact him at iwilliams@genetic. co.nz
DAIRY NEWS MARCH 29, 2016
ANIMAL HEALTH // 27
Autumn damp may bring disease in young stock GEMMA CHUCK
AUTUMN IS here and with it come diseases associated with damp conditions. One such can be coccidiosis during the post-weaning period. Coccidiosis is a disease of young stock that causes big losses economic losses in dairy and beef industries worldwide – estimated to be US$400 million per year. Coccidiosis is caused by a parasite (Eimeria bovis and Eimeria zuernii) that infects the intestinal cells. The life cycle of these parasites is complex. Single cell oocysts (eggs) are passed in the faeces of cattle and can remain in the environment for a long time, where they can remain infective. This is especially true in moist, shady areas. The oocysts are ingested by susceptible cattle and after many stages of transformation and replication another generation of oocysts are produced and passed in the faeces of the infected animal. The multiplication rate of these parasites is phenomenal, with one ingested oocyst producing as many as 23 million oocysts in the next generation. This helps explain why coccidiosis outbreaks can quickly get out of control. Oocysts mature within the intestinal cells of the animal, leading to rupture of the cell; this is what is responsible for the disease and the clinical signs that develop. The severity of disease is directly related to the number of oocysts ingested. In mild infections, there is minimal damage to the intestinal cells as they can rapidly be replaced and the damage can be quickly repaired. It is estimated that 95% of coccidial infections are subclinical where the animals do not show any obvious signs of disease. However, while there is often no sign of disease these mild infections can cause a reduction in
growth rates. Low exposure to coccidia will result in development of immunity to that particular species to coccidia. In severe infections, most of the intestinal cells are infected which, upon rupturing, results in severe intestinal damage and blood loss in the faeces.
ferent groups of calves reared in the same paddocks from one season to the next. Paddocks should be managed to reduce the
environmental exposure to coccidial oocysts. This can be achieved using an ‘all-in all-out’ system with rotation of smaller paddocks or use of moveable
hot wires in larger paddocks. Reducing the stocking density will reduce the risk of disease during ‘at-risk’ times of the year.
The use of in-feed coccidiostats such as monensin (Rumensin) and lasalocid (Bovatec) can help prevent coccidiosis. The ration (grain, pellets)
should be checked prior to feeding to determine the level of coccidiostat. • Gemma Chuck is a member of the The Vet Group, Victoria, Australia.
Gemma Chuck
As few as 50,000 infective oocysts are required to cause severe disease in a susceptible young calf. Coccidiosis primarily occurs in susceptible young stock when there is crowding, stress and high environmental exposure. Stress such as transport, weaning, dietary changes, management procedures and other health problems can precipitate an outbreak of coccidiosis. The clinical signs of coccidiosis can include diarrhoea (which may contain blood), straining, loss of appetite, weight loss and even death. Severely affected animals often have faecal staining around their tail and hind legs and may stand away from the mob. Your veterinarian will make a diagnosis of coccidiosis based on clinical signs, faecal samples and sometimes post-mortems of affected animals. Diagnosis is essential for prompt and specific treatment to enable the best prognosis. Recovery can be slow and some animals remain permanently unthrifty. There is a high risk of coccidiosis in dairy heifers where the same ‘calf paddocks’ are used year after year. Coccidial oocysts can survive in the environment for up to two years in optimal conditions. Outbreaks often occur in dif-
0025 OPS Benefits_Selwny Dairy (280x187)_FAmm.indd 1
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DAIRY NEWS MARCH 29, 2016
28 // ANIMAL HEALTH / PASTURE
Pasture management lifts profit, c about 580kgMS/ha and 260kgMS/cow which is pamelat@ruralnews.co.nz typical for that area, Baynham said. Pasture was 8tDM/ha and the key goal GOOD RESULTS have was to lift that to 10tDM/ been seen in boosting ha. profitability from pasThe initial plan was to ture management on two increase equity for Tony Northland ‘partner farms’ and Briar to $500m and – but there’s still plenty of lift milk production from work to do, says farm cona total of 600,000kgMS to sultant Gareth Baynham. 90,000kgMS. Baynham is facilita“We were going to do tor of the Northland partthat through ner farm project pasture manfor DairyNZ and “Based on that result agement – the Northland Dairy we came up with a plan. feed wedge, Development spring rotaTrust (NDDT) This was a good lesson tion plan, rotaand gave a recent to learn. We thought we briefing on targets tion length wanted more days in and results on the targets, a milk and we’d do that by farms. nitrogen plan Following on and good use calving five days earlier. from the DairyNZ of suppleWhat we should have focus farm of Aliment when it done – LIC pointed out to ster and Lyn Candy is profitable (2010-2015), Bayn- us – was tighten up the to use it,” he ham said they were calving; that would have said. excited about what given us the same effect.” They happened there planned to and thought they increase the ich joined the partner farm 240 cows to nearly 300. could do something simiprogrmme in 2014 with lar at partner farms. Also Over time they planned support from a manageNDDT was looking for an to bring forward the calvextension to the principles ment team who have given ing date from July 25 to their time, and sponsors. of its trial farm near DarJuly 10. Tony and Briar are gaville. Another target was to 50/50 sharemilking for “We’ve got ‘pasture’ reduce whole farm expenDon and Linda Lunjevich, diture, not just the sharefrom Profit from Pasture Tony’s parents. The farm as our catch cry: it was milker, to $3/kgMS. before they started was a at our focus farm and we “They were running a 107ha milking platform; are carrying that through pretty tight ship and we Tony had just bought a to our partner farms. We needed to keep it tight. kikuyu runoff and parts want to demonstrate how They also wanted to move all farm management, and of that are now coming to twice-a-day milking.” into the milking platespecially pasture manIn year one milk proform. There’s a long walk agement, can increase duction ended about (2.4km) to the furthest profitability.” 673kgMS/ha up so “that paddock and the contour The two focus farms was a bit of a win”. “There is challenging in places. are run by Tony and Briar was good early season Tony had been doing three stuff but we really fell Lunjevich at Takahue, milkings in two days, with away in late lactation. Pasnear Kaitaia, and Innes 16 hour milking of 230-240 ture eaten went from 8t Anderson and Tania Dropulich, with contract milk- cows. to 9.2t – again a good win The big move was to ers Philip and Pia Rockell, but 10 was our three-year increase stocking rate. near Kaiwaka in the lower target.” The farm was producing north. The spring rotation PAM TIPA
All the ‘heavy lifting’ is done by the management team of farmers. “We meet the farmers and have an initial whole farm assessment using the DairyNZ tool. We meet monthly for six months and then we go to quarterly… a bit different from the focus farm where we meet monthly for three years.” Tony and Briar Lunjev-
Farmers attend a field day at the partner farm.
Milk production graph
and farm walks worked well but pasture quality suffered in spring and autumn. Reproduction at 39% six week in-calf rate was pretty disappointing (78% is the industry target). “Based on that result we came up with a plan. This was a good lesson to learn. We thought we wanted more days in milk and we’d do that by calv-
ing five days earlier. What we should have done – LIC pointed out to us – was tighten up the calving; that would have given us the same effect.” Lameness was a major issue. Baynham said so far this year (2015-16) there have been big changes. Land area has increased to 124ha, some of the runoff is being milked off. The
stocking rate is 2.4 cows/ ha and 14ha of chicory was grown for high value feed through the summer. Milk production is on track for 84,000kgMS – up on 72,000kgMS last year and 62,000kgMS the year before. This is about 700kgMS/ha so “not a disaster but not quite where we were trying to get to,” Baynham said. All the cows were on 16
hours and 36% were first calvers. With pasture management there was low cover in the spring and mulching continued too late in May last year. “That was a massive concern that put the farm under pressure all year. The big focus this year will be getting the mulching done earlier.” Reproduction this year
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DAIRY NEWS MARCH 29, 2016
ANIMAL HEALTH / PASTURE // 29
, cow health was 41% six-week in calf rate. “That was really disappointing: we hoped to pick up some gains from the three milkings in two days. Cow condition was a bit light so that is a big focus for us next year.” Summing up this
year, he said they had had a good peak right on target then pasture quality bit during summer and autumn. The first year they milked twice a day, this year three times in two days.
“It didn’t quite peak as high but that drop-off has been a lot lower this year through aggressive pasture management.” By moving to 16 hours, when a worker quit they were able to get away with not replacing him.
Expenditure graph for partner farm.
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THE LOWER North Island partner farm is run by Innes Anderson and Tania Dropulich, with contract milkers Philip and Pia Rockell, and once again supported by a great management team and local sponsors. Innes and Tania lease the farm from Innes’ parents. There’s a 211ha milking platform: “That’s what happens when you GPS your farm – it shrinks; it was 220ha, all our numbers were based on that,” Baynham says. The farm has 140ha irrigated. Before the partnership started they were milking 470 cows (2.2cows/ha) doing 160,000-170,000kgMS. That was probably a fraction above average for the area. That equated to 780kgMS/ha or 315kgMS/cow. Pasture and crop eaten was just under 10t DM/ha and the goal is 11.4t DM/ha by 201718. “We wanted to increase the surplus by $180,000 and that would come from producing another 30,000kgMS and holding costs. “It was a good worthwhile plan; it was going to come from pasture management, spring rotation plan, rotation length targets, nitrogen. Nothing is new there, but those are some great tools. “They planned to oversow and mulch annual rye into kikuyu – that’s worked really well for them.” They planned to lift the stocking rate from 2.2 to 2.6 cows/ha and hold farm expenditure at $700,000 so the increase in milk should dilute the costs from $4.24/kgMS to about $3.50/ kgMS. “That is going to come from Tania being mean and stingy when she is budgeting and we are helping her out with that,” said Baynham. “We on track for about 900kgMS/ha which will be about 190,000kgMS, up from about 160,000kgMS last year. Tactical once-a-day is being used to manage cow conditions and feed deficits. “We are pleased with the milk production gains: 30% of the herd are first calvers and quite a bit of the milk went out of the vat for [beef] calf rearing. “The negatives have been that feed deficits have had a bit of an impact on production. “Pasture was low at calving: Philip used the spring rotation plan well but we found at the higher stocking rate the margin of error [is thin] and you have to respond quickly to deficits. “Last time I checked the financials were tracking to about $3.80/kgMS. So we’ve got work still to do there. The big goal there is to use the grass we grow. “The management team are excited about the milk production and a few of them are thinking maybe we didn’t set the targets quite high enough for year three.” A couple of feed deficits occurred. “Year one is a tough learning curve for everyone.” The team had done a great job “but we are all thinking there is room to make milk production a lot better next year.”
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DAIRY NEWS MARCH 29, 2016
30 // MACHINERY & PRODUCTS
Green German offers more choice MARK DANIEL markd@ruralnews.co.nz
POWER FARMING
recently introduced a number of new models and upgrades to the Deutz Fahr tractor ranges for the 2016 season. In the all-important 100-130hp sector, the introduction of the new 5G series will complement the existing 5120 and 5130 models, and offer buyers more choice in an attractively priced package. The 5105.5 and 5115.4 are 100 and 109hp respectively and the first DF models to use the new Farmotion engine which is built in-house and specifically designed for agricultural work. The units meet Tier4i emission regulations by using high pressure common rail with fuel injection, and exhaust gas recirculation (EGR) and diesel oxidisation catalyst (DOC), which is said to be a simpler and more effective solution than diesel particulate filter (DPF) and Ad-Blue, and requires no maintenance through its operating life. A heavier engine block is also said to reduce vibra-
Optum CVT wins coveted prize THE CASE IH Optum certainly turned
tions by up 25% and noise levels by 4%. Coupled to the new motor is a choice of 40 x 40 transmission in the 5105 or 60 x 60 in the 5115, both with wet clutch/ power-shuttle and either 2- or 3-speed, on-the-go powershift. As part of the overall package the tractors are well equipped, using the D2 four post cab, the Stop and Go system – which cuts drive by using only the brake pedal – a true 4-wheel braking system with axle management for the diff lock, and electronic hitch control. Both models have an
open-centre hydraulic system with 55L/min flow, and either two or three remotes as standard. The 5115 also has increased lift capacity at 4855kg – its sibling’s maximum is 3600kg – and it has the SDD steering system that engages a second, switchable steering pump to reduce the number of turns of the steering wheel to go from lock to lock. At the upper end of the stable the wellknown Agrotron range now includes the Evolution series, cosmetically upgraded to bring the look of the tractors into line
with the higher spec 6 and 7 series; there are some specification changes to the various models. All models now have mechanical cab suspension; and the M600 Summit EVO has front axle suspension and 50km/h transmission. Completing the package is a new cost-effective loader option, the Agrilift 4020, made from high grade steel and with mechanical self-levelling, third remote function and shock absorber to lift 1720kg to 4m. www.powerfarming. co.nz
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heads in November at Agritechnica 2015, where it won the coveted Machine of the Year 2016 Award. First production models are now coming off the factory lines and the first examples are due to hit New Zealand in June. Fitting between the Puma and Magnum ranges and offering compact dimensions and lighter weight, the Optum CVT is produced at the St. Valentin factory in Austria. It uses the proven FPT 6.7L NEF engine to deliver 270 and 300hp at rated speed. This rises to a maximum of 313hp as the engine comes under load, with maximum torque of 1282NM at 1400rpm. The engine meets the latest Tier4B emission regulations using SCR technology. Tankage is 630L of diesel fuel and 96L of Ad-Blue liquid. The transmission is carried over from the LWB Puma range and has upgrades such as strengthened castings, a new rear axle and double planetary final drives to handle the increased power. Speed is continuously variable
between 20m/sec and 53km/h, and the Active Stop feature removes the need to hold the tractor on the brakes whilst stationary. A load bearing sump assembly acts as a backbone and keeps tare weight down; it allows operating weights of up to 16,000kg, which helps get extra power to the ground without compromising the tractor’s agility. A rear lift capacity of 11,058kg combines with the ability to lift 5821kg up front, and a CCLS hydraulic system has up to 220L/min output; steering and transmission systems are separate. Completing the package, a new reactive steering system has the steering wheel returning to the straight ahead position after turns, making high speed work more comfortable; and a headland management function (HMC 2) handles repetitive tasks in the paddock, and offers a remote file transfer system. Connectivity with implements is via the ISOBUS 3 plug-and-play system. Though the tractor is relatively highspec, operators contemplating highspeed transport work might prefer the ABS or ABS Advanced option. www.caseih.co.nz
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MACHINERY & PRODUCTS // 31
Auto loader has the job wrapped up MARK DANIEL markd@ruralnews.co.nz
RECENTLY LAUNCHED by
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130 years old and still going strong MARK DANIEL markd@ruralnews.co.nz
WARATAH HAS designed and developed fencing prod-
ucts for 130 years, always going for fencing easier to install, simpler to maintain and performing better over the life of a fence. The manufacturer accepts that farmers are traditional about fencing and timber will remain a popular choice of material, but believes steel fencing products have a lot to offer. At this year’s Southern Field Days at Waimumu, Waratah’s galvanized Jio Star and the bigger Jio MaxY were popular and the newly released 2.7m Jio MaxY post was welcomed by industrial contractors and deer farmers, who noted that with 30+ holes along its length, there were plenty of wire attachment points for using the Jio clip for high fencing jobs. In lots of cases a bigger strainer is needed for high fences, so Waratah also released a 3.25m Ezypipe strainer post which goes in the ground about 1.2m and works with the steel Waratah Adjusta-stay for a complete strainer assembly. Wire tie-off is easy for professionals, but not everyone can tie a neat knot and indeed don’t want to. For these individuals the Gripple T-clip is available; it brings each line wire around the strainer post, hooking the legs of the T-clip onto the line wire, pushing the wire through the one-way hole to complete the join. The T-clip has been around for nearly eight years – a simple and effective way of preventing sore hands suffered in tying-off line wires. Also for wire joining and tensioning, the Gripple Plus range is available in small, medium and large sizes; The Gripple tool can be used to join two wires or to tension each wire. Tel. 0508 927 2824 www.waratahfencing.co.nz
Wire tie off with Waratah Gripple T-clip.
grassland specialist Kuhn, the SW 4014 wraps square or round bales, notably using the unique AutoLoad function. Awarded a silver medal at the 2015 Agritechnica Show for its ability to allow fully automatic wrapping of squares or rounds without the need for driver input, the system is said to improve output while minimising stress for the operator during long harvest days. In operation, the driver approaches a bale, which the system detects, then it scans the bale for length and sets the loading arms to a pre-set lifting position. Heavy duty construction incorporates a hydraulic sliding frame, offers a wide track for stability, while the ‘drive through’ layout allows easy loading and good visibility of the wrapping cycle. In operation in the paddock the width is 4m which closes down to 2.5m for road transport. The machine can wrap large
square, medium-square or round bales up to 1500kg and 200cm long, and rounds up to 140cm diameter without any mechanical adjustment; the system can store multiple format and bale dimensions within the control terminal. The layout and operation allows loading from the front or rear of the machine, which allows the retrieval of poorly dropped bales from difficult locations, and placement of wrapped bales back to ground level without any damage. Shorter patented top rollers allow film roll holders to place film on the bale close to the centreline, resulting in less wrinkling
The SW 4014 wraps both square and round bales.
and better oxygen exclusion; the IntelliWrap system allows accu-
rate control of the number of wraps for best coverage, while the ISOBUS control system can be used to reposition bales in the preferred manner such as ‘knots up’ or ‘drop on short side’. Power requirement allows a range of tractors to be used, though a prerequisite is 45L of oil per minute. An optional PTO driven system can be specified which drives a closed circuit system, which reduces fuel requirement and any risk of contaminated oil getting into the wrapper system. www.kuhn.co.nz
DAIRY NEWS MARCH 29, 2016
32 // MACHINERY & PRODUCTS
Taking guesswork out of silage making MARK DANIEL markd@ruralnews.co.nz
SILAGE ADDITIVES
have long been promoted as a means of producing higher quality winter feed, and while the composition and efficacy of the various products have been argued, one key point applies to all, to ensure the correct amount of product is used for the prevailing conditions. Quite often the calculation about the amount required is based on guessing the output of the forage harvester, guessing the weight of the crop in the trailer, and sometimes guessing the output of the additive pump. Of course this
guesswork is further compromised during the harvesting day by changes in dry matter, grass species and changing trailers weights. The SilaScale system invented and developed by Andy Strzelecki and UK specialist Kelvin Cave Ltd aims to remove all the guesswork with a system that continuously updates application rates throughout the day by monitoring the fresh weight of forage being delivered to a trailer. Key to the system is a robust set of load cells fitted to one trailer, the ‘master’ in a fleet of silage trailers. The master trailer continuously monitors the fresh weight of forage being harvested and com-
municates the results to the flow meter that is part of the harvester mounted applicator via a Bluetooth connection. Crop weights are measured 60 times per second and data is transmitted every second. The data received allows the flow meter to recalibrate second-by-second. When the master trailer moves away from the harvester to empty, the flow meter ‘fixes’ the average flow rate for that load and continues to apply this rate as subsequent trailers are filled. When the master returns the wireless connection is re-established and the flow meter re-calibrated as the trailer is filled. The key benefit is
accuracy of application and the avoidance of under- or over-delivery; the former compromises forage quality and the
The SilaScale monitors the fresh weight of forage being delivered to a trailer.
latter provides little or no benefit except for increased costs. Once installed the desired application rate is selected, the system is fully automated and it then needs no operator input. Strzelecki notes “a farmer or contractor who is certain that the right additive is being delivered at the right rate can be more certain of the final result, and is also likely to benefit from substantial cost savings”.
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OFF-ROAD SPECIALIST Polaris is about to add to its side-by-side offering. Its new Polaris General combines the rugged practicality of the Ranger model with that of the championship winning RZR, and is said to be aimed at the growing recreational, hunting and outdoor market. The Ranger DNA sees the carry-over of the 272kg rated dump box and the 680kg rated towing capacity, along with standard fitment of electric power steering, engine braking and all-wheel drive, which combine to allow seamless operation across any terrain. The RZR pedigree takes the standard
Ranger suspension with travel of 254mm and raises this to 311mm on the front and 335mm on the rear; independent double wishbones at each corner give ground clearance of 305mm, and front and rear sway bars allow high speed travel over rough terrain. Safety is assured by a full length underbody skid plate and half doors. Two versions will hit the New Zealand market in late April, in premium and deluxe designations; both have 4500 pound winches, low profile front bumpers and 14 inch alloys fitted with 8-ply Dirt Commander tyres. The higher spec deluxe machine also includes uprated Fox performance shocks, a sports roof, convex mirror and a premium sound-bar with Bluetooth connectivity. www.polaris.co.nz
DAIRY NEWS MARCH 29, 2016
TRACTORS & MACHINERY // 33
New flagship model in all-rounder series MARK DANIEL markd@ruralnews.co.nz
SINCE THEIR launch,
John Deere’s 6M series tractors have earned a reputation as great allrounders, able to handle a range of tasks from grassland to cultivation or frontloader duties. The choice for 2016 will get a little broader with the upcoming introduction of the new flagship 6195M. Equipped with the latest spec PowerTech PSS engine to Tier 4 final emission regulations, they have a 6-cylinder, 6.8L block pushing out 195hp at 2100rpm, climbing to a maximum output of
205hp when it hits a tough spot. With a wheelbase of 2800mm and a full frame chassis, stability in the paddock and on the road are assured, and the latter is designed to take a range of transmissions including the Command Plus quad option. Further options might include mechanical cab suspension and triple link system (TLS) on the front end, enhancing the ride for the operator; the latter can be seen to improve performance in the paddock also. At the rear a beefy three point linkage picks up 8500kg, and hydraulic flow is via a pressure flow compensated pump
system which can deliver 114L on demand to power the likes of frontloaders or external services. As part of the JD Integrated Farm Sight Solutions package, a range including AutoTrac
assisted steering and ISOBUS single screen integration releases the operator from repetitive tasks and makes the most of the tractors’ capability. Visit www.johndeere. co.nz
John Deere’s 6M series.
Prepare to be impressed
Effluent design nod for Numedic DAIRY TECHNOLOGY company Numedic Ltd has
PAY AS LITTLE TLEE AS TL
TERMS UP P TO O
*
INTEREST RATES RA R ATES EES S FROM AS LOW O AS OW S
**
The new 5-Series G tractors from Deutz-Fahr deliver unparalleled on-farm productivity with industry leading features such as true four-wheel braking, Stop & Go, double-displacement steering, a 100% locking diff, and a super quiet, ergonomically designed cabin. These new four-cylinder models (105hp and 115hp) provide the benefits of a big tractor in a compact, muscular workhorse ideally suited to New Zealand farming. Call your local Deutz-Fahr dealer for all the details and prepare to be impressed.
POW0575A
gained farm dairy effluent (FDE) design accreditation. The accreditation programme provides a new way forward for effluent system design in New Zealand, says Cathryn Reid, a Numedic director. She has been a member of the design standards steering group since the initial development of the concept. Its goal is to ensure all NZ dairy farmers have effluent systems that can meet dairy industry and wider community expectations for the land application of dairy effluent. This includes keeping all untreated effluent out of surface and groundwater, keeping landapplied effluent nutrients in the root zone to capture their nutrient and economic value, and ensuring all systems are compliant 365 days a year. Accredited organisations have had their design skills and workplace systems assessed by an independent panel and have met the accreditation standard. Companies have been assessed for their competency and skills in regulation and legislation, soils and climate, effluent block allocation, pond storage calculations, hydraulic design and quality assurance management systems. Says Reid, “We had always planned to complete the accreditation, as we see it having benefits for our customers and dealers.
* Conditions apply. Contact your local Power Farming dealer. ** 5105.4G tractor and Trima X46 self-leveling loader with 3rd service. Offer available for a limited time only.
DAIRY NEWS MARCH 29, 2016
34 // TRACTORS & MACHINERY
Flagship depot opens in Feilding FARM MACHINERY
dealer Cervus knows a thing or two about selling tractors and machinery, no doubt helped by its running 42 John Deere dealerships globally. In Australia it runs six outlets in Victoria, and in New Zealand its nine depots cover the North Island from Waipapa to Gisborne in the east to Stratford in the west. Its new showcase depot in Feilding was opened during the recent Central District Field Days after seven years operation in the area. “The new outlet will allow Cervus to expand its local operations and add value to our customers’ businesses,” says branch manager Dan Clavelle. As part of the proceed-
ings led by pseudo-farmer Te Radar, and attended by Cervus and John Deere staff from around the world, Minister for Primary Industries Nathan Guy cut the symbolic green ribbon to open the depot and noted “agriculture is a long term investment, and those with foresight look at the broader picture when making investment decisions”. He said Manawatu is the agri-hub of NZ with diversity encompassing dairy, beef, cropping and vegetables; 50% of the total NZ lamb kill happens within two hours of Feilding. Guy asked people to remember that though the dairy sector is going through tough times, other sectors are positive in the
overall picture: beef is up about 33% with sales of $3.2 billon, horticulture is delivering $4b and wine $1.6b. Reflecting on calls by Labour leader Andrew Little to hold a ‘dairy crisis summit’, Guy commented “the Opposition appears to have very strong ‘anti’ views on many topics affecting agriculture, be it the TPP agreement, water storage or RMA reforms, and while appearing to make a lot of noise, they fail to come up with viable alternatives”.
Hustler ups the ante MARK DANIEL markd@ruralnews.co.nz
FEEDING SPECIALISTS Hustler have
recently introduced a three point linkage bale feeder that looks to take conventional thinking
Primary Industries Minister Nathan Guy (right) at the opening.
Cervus Manawatu’s new flagship depot in Feilding.
on design for this type of machine and turn it on its head. The new SL360X is the result of an extensive 12 month testing programme here in New Zealand, and sees a new machine with a rated capacity of 1.25 tonnes; it is said to be 8%
Loading with 3 point hitch.
E A S YCU T DISC MOWERS KRONE EasyCut disc mowers have proven exceptionally well around the world. Delivering perfect results, these mowers feature genuine and exemplary KRONE innovations including: • SafeCut disc protection system - prevents damage to the spur gears and neighbouring discs • Quick-change blades • Fully welded cutterbar • DuoGrip centre-of gravity suspension
www.tulloch.co.nz
0800 88 55 624
DEALERS NATIONWIDE
heavier and 30% stronger than previous models. Described as multi-purpose, the machine has another fence that allows it to contain up to 1m3 of feed. It can feed pit, loose and maize silage, as well as fodder beet and cut grass. Improvements have been made to the auto connect and release system using the patented Snaplox coupler that ensures accurate connect and disconnect every time, and incorporates a double-latching setup said to be stronger and to eliminate stress on the loading spears. Bale spears have forged points that make bale penetration easier, and counter the need to push bales along the ground, risking soil contamination which can be a major problem with blunt tines. A new thermo-formed floor design sees an increase in height around
the feed platform, and encloses the machine drive shafts to prevent any crop buildup and reduce maintenance downtime. A redesign of the machine’s headstock now sees it easily adapted to fit to high capacity frontloaders or telehandlers; this opens up the possibility of feeding over barriers or into mixer/feeder wagons. An optional side-shift system allows up to 180mm of offset to the left or right and helps ensure accurate placement of feed in all situations. A further series of upgrades sees the use of bearing covers, motor protection on the head unit, and self-aligning bearings used extensively, which are said to require less greasing, extending the routine maintenance schedules. www.hustlerequipment.co.nz
New
Cattle Fodder Beet Block Palatable, convenient and cost-effective, New Cattle Fodder Beet Block, is a molassesbased supplement to help prevent phosphorus deficiency and balance other minerals lacking in your herds’ diet. To order today or learn more, phone 0800 287 325 or visit sealeswinslow.co.nz
TOUGH. CAPABLE. CLEVER.
CLASS LEADING TORQUE*
3 YEAR UNLIMITED KM WARRANTY
SPEED LIMITING WORK KEY
BECAUSE A JOB WORTH DOING, IS WORTH DOING RIGHT. CALL 0800 020 074 OR VISIT WWW.CANAMOFFROAD.COM CHRISTCHURCH DANNEVIRKE DARGAVILLE GISBORNE GISBORNE HASTINGS HIKURANGI
INVERCARGILL KAITAIA MAYFIELD MILTON MOUNT MAUNGANUI MOUNT WELLINGTON NELSON
NORTH CARTERTON OAMARU PALMERSTON NORTH PUKEKHOE RANGIORA NORTH CANTERBURY ROTORUA STRATFORD WEST
TAPANUI TE KUITI THAMES WANGANUI WASHDYKE WELLSFORD WHAKATANE
©2016 Bombardier Recreational Products Inc. (BRP). All rights reserved. ™, ® and the BRP logo are registered trademarks of BRP or its affiliates. Products are distributed in Australia. by BRP AU. Make sure that all laws and regulations, are respected. Ride responsibly. ^3 year warranty covers MY16 Can-Am Defender models only. * Rotax HD10 engine provides up to 20% more torque than the closest leading competitor, the 2016 Polaris Ranger 900 XP.