Dairy News 11 October 2016

Calls to send palm kernel expeller shipment back. PAGE 3 GRIZZLY WITH GOOD MANNERS

TACTICS PAY OFF

Tackling terrain PAGE 28

Looking after each other PAGE 19

OCTOBER 11, 2016 ISSUE 366 // www.dairynews.co.nz

CHEERS TO RAW MILK

Mark Williams, Canterbury set to launch own brand, as momentum grows despite stricter new regulations. PAGE 5

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DAIRY NEWS OCTOBER 11, 2016

NEWS  // 3

‘Rules are not made to be broken’ A file picture of MV Molat, caught up in the PKE shipment saga at Tauranga Port.

SUDESH KISSUN sudeshk@ruralnews.co.nz

TPP optimism rises. PG.04

‘Wandering Willie’ in trouble. PG.09

Calving info on tail. PG.28

NEWS ������������������������������������������������������ 3-17

RULES ARE there for a reason and

importers must abide by them, says Federated Farmers Dairy chairman Andrew Hoggard. He says a robust process is in place for importing palm kernel expeller (PKE) and all importers seem to follow them. He was commenting on 23,000 tonnes of PKE sitting on a ship at Tauranga Harbour since early last month; the Ministry of Primary Industries has blocked the vessel MV Molat from unloading the cargo because it came from an unapproved facility. MPI says the importer is prepared to have the PKE heat treated but there are calls to send the ship back. Hoggard likened the shipment to cases on the TV show Border Patrol, where people bring in meat without declaring it. “It’s pretty stupid for people to do

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assessing a proposal from the importer to have the product heat treated. “The final decision has yet to be made.” Primary Industries Minister Nathan Guy is backing MPI’s response. He says New Zealand has a stringent border security system; it has strengthened under his watch. He says PKE must come from a certified plant. “It is an important feed source for the dairy industry.”

Kiwi farmer ineligible for Oz funds

OPINION ����������������������������������������������18-19 AGRIBUSINESS ����������������������������� 20-21

that; we have strict rules in place for a reason.” The shipment, believed to be owned by ADM, came to MPI’s attention on September 2 when it applied for biosecurity clearance. “On examination of the paperwork, MPI found that a Malaysian facility where some of the PKE was produced was not approved under MPI’s current import health standard,” a MPI spokesman told Dairy News. At the time of writing MPI was

Labour has pounced on the shipment and is calling for it to be sent back. Labour’s biosecurity spokesman Damien O’Connor says the PKE is from an unregistered supplier in Malaysia. “Unregistered suppliers do not have to meet the stringent safety checks applying to registered suppliers, to ensure there is no biosecurity risk to New Zealand. In this case, we do not know what checks were applied. “In previous cases, huge biosecurity risk from possible foot and mouth contamination have been identified from PKE imports not up to standard. The risks are high and we should take no chances. “If National and MPI are considering letting this shipment into our market, it shows they still do not understand the enormous risk biosecurity hazards pose to our economy and communities,” says O’Connor Greenpeace has questioned why the MPI decision is taking so long.

MADY BRENNAN

VICTORIA DAIRY farmer Ian

Goodin spent countless hours preparing a 100-page application for the Australian Government’s farm household allowance (FHA) only to

be told he is not eligible. Goodin and wife Lisa are New Zealand citizens who have owned and operated their dairy business in Yarraweyah since 2008. Goodin says he was told on the phone by Centrelink that he may be eligible for the FHA and should

apply. But a letter confirmed he was ineligible as he was “not an Australian resident”. He says the process wasted his time and he thinks it “pretty unfair” he cannot be considered after eight years in Australia. “We’ve been here a while, we’ve

integrated into society pretty well, we’re involved with the community, on the school council, the local soccer club and all that stuff, as well as paying our taxes, but we’re not treated the same at the other end of it,” he says. TO PAGE 4

DAIRY NEWS OCTOBER 11, 2016

4 //  NEWS

A bit more optimism over TPP SUDESH KISSUN sudeshk@ruralnews.co.nz

THE GOVERNMENT is feeling a bit

more optimistic about the future of the Trans Pacific Partnership (TPP) agreement. Primary Industries Minister Nathan Guy, who recently visited the US, says there is a move to push the TPP deal through the Congress ‘lame-duck session’ (December-January). Guy met with his US counterpart, Agriculture Secretary Tom Vilsack , who is strongly pushing for the TPP deal. “During my visit to the US [I found] a bit more positivity than I felt a month ago,” he told Dairy News. “They are getting ready to get it through a lame-duck session; I’m a bit

more optimistic now but it will be a very big challenge.” Guy reiterated Prime Minister John Key’s warning that the US must sign up to the TPP deal to ensure continued leadership and influence in the Asia Pacific region. Guy says Japan is moving towards ratifying the TPP and the New Zealand parliament is a long way through endorsing it. “This is sending a pretty strong message that key countries are making progress.” If the US does not endorse the TPP others will set the rules in the region. Guy points out that the Asia-Pacific region will be the major driver of economic growth for the foreseeable future, presenting enormous opportunities.

Nathan Guy with his US counterpart, Tom Vilsack (left) and Argentinian Agriculture Secretary Ricardo Negri in Nebraska recently.

“TPP is not perfect and I think some agricultural industries, including both [the NZ and US] dairy industries are well aware opportunities have been missed. “Overall though it will create jobs, raise standards of living and enable our

agricultural businesses to capitalise on huge opportunities. “It will provide better access for goods and services to more than 800 million people in the TPP countries, which make up 36% of global GDP.” Guy addressed the Global Leaders

Ineligible for OZ funding FROM PAGE 1

The Goodins oversee four farm businesses in the region, and as suppliers to Murray Goulburn were hit hard by the recent price drop. “You can build equity for sure and we have, but then Murray Goulburn dropped the ball on us,” he says. “The fact they were preaching A$6/kgMS right up until the last days was really what got us into trouble.” Working off farm to supplement income is not an option

because they had to reduce staff until February 2001, met the defnumbers. So they are manag- inition of an Australian resident if they lived here. ing by borrowing more, But a February 2001 cutting costs and doing rule change assigned most of the work themnon-resident status selves. to Kiwis who had He says they are arrived after 2001. grateful the season has Jenni Clark, of the been good so far and Northern Victoria they won’t be buying Ian Goodin Farmer Relief Drive, water over summer. A spokeswoman for Centre- is calling on NZ and non-Auslink says New Zealanders who tralian-citizen dairy farmers to arrived in Australia before 2001 contact her via Facebook. She is were considered protected spe- collating information to present cial category visa holders and, to the government.

“It’s a bad situation that definitely needs changing,” Clark says. Goodin says he and his wife and sons Hunter (12) and Luke (10) intend to stay in Australia and will look to becoming citizens in time. “My kids are raised as Aussies, they play AFL and they call jandals ‘thongs’,” he says. “They love New Zealand too, but if they ended up playing rugby they’d be more likely to play for the Wallabies than the All Blacks.”

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Forum in Nebraska and spoke about NZ’s transition from protectionism to the open market -- how NZ farmers are now world leaders in agricultural exports. “Our experience is that open, rulesbased trade has made NZ richer, more innovative and more secure, with trading ties strengthening relationships with partners in all areas. US membership of the TPP is vital, especially for Nebraska: it has the country’s second-largest number of cattle and calves -- nearly 6.4 million. “The TPP will see tariffs drop significantly for other exports produced in Nebraska – soybeans, corn, pork and veal. Over time it will also see tariffs eliminated on dairy products including ice cream, infant formula, skim and whole milk and cheese.”

Trust restoring lakes, livelihoods LIVING WATER, the partnership between Fonterra

and the Department of Conservation (DOC), has called on charitable organisation Te Whangai Trust to help restore part of New Zealand’s threatened peat lakes system. Te Whangai Trust people last week did extensive planting at Lake Ruatuna, part of the Waikato peat lakes network (described by Land Environments NZ as ‘acutely threatened’). Trust founders Gary and Adrienne Dalton say that to them as Fonterra farmers it means a lot to be part of this restoration project. “We’re grateful for Fonterra and DOC’s support of Te Whangai’s vision and our mutual passion for social and environmental good.” Living Water site leader Mike Paviour says Te Whangai’s work in the restoration achieves much. “We’re thrilled to have Te Whangai out here on the peat lakes. We get a buzz out of working with these guys… especially because of the whole social factor,” said Paviour. Te Whangai Trust, the Pakorokoro Miranda charitable organisation, trains people in sustainable agriculture, horticulture and environmental management, preparing and helping them to get full time work. “It’s not just the environmental restoration and biodiversity aspect we like, but the holistic view of what Te Whangai stand for and what they’re doing to help people,” says Paviour. By the end of the project, the team will have planted 20,000 natives including on newly formed silt traps, which help prevent sediment entering and polluting the lake. “Engaging the same people who raise and care for the plants to also invest their time in the restoration work connects all the pieces -- people, place and environment. “It’s good business. You get a good job done at a good price and all parties gain in many ways, including future generations who’ll get to visit and enjoy these conservation areas,” says Paviour.

DAIRY NEWS OCTOBER 11, 2016

NEWS  // 5

Stricter raw milk rules fail to curb demand NIGEL MALTHUS

THE RAW milk move-

ment is gaining momentum despite facing stricter new regulations, according to raw milk advocates Village Milk, Motueka. Among other changes, the new regulations require individual producers to register under a regulated control scheme. Village Milk, which had set up a small network of franchises, is no longer offering franchises because it can no longer take

responsibility for individual farmers’ compliance. However, it will now act as a consultant to help farmers meet the regulations, advise on and install the specialised vending equipment and set up under their own branding. The new regulations took effect from March 1, with existing raw milk providers given until November 1 to comply. Village Milk managing director Richard Houston

Mark Williams has picked a small herd of nine cows for his raw milk venture.

says many people around the country were concerned they would not be able to get supplies after that time but he says the new rules are “good for the product and good for the consumer”. Houston says the main requirement is that farmers must adhere to strict monitoring, testing and hygiene protocols. While responsible raw milk suppliers will already be maintaining good hygiene,

Village Milk can provide formal management plans for them to put into practice, he says. With guidance from Village Milk, Mark Williams, of Aylesbury, 30km west of Christchurch, is about to launch his own raw milk under the Aylesbury Creamery brand and hopes to be selling in a week or two. His main herd of about 500 will continue supplying Fonterra, but he has chosen nine young cows for raw milk supply and is

OF FOFER R E OC XT TO EN BE D R ED

Aylesbury Creamery’s signage is already tempting consumers driving past the property.

already milking them separately under the stricter protocols. He has bought new testing equipment and refrigeration plant and two Italian vending machines, one to sell reusable glass bottles and the other to dispense the chilled milk. Both will accept cash or a preloaded loyalty card. One of the new regulations requires bottles to be labelled with health warnings, and Williams’ branding will be carried on dishwasher-proof labels on the bottles, which customers can date with a whiteboard marker and bring back to the farm for refilling. A staunch advocate of raw milk, Houston says its value lies in the natural flora it contains. Customers believe raw milk helps dispel ailments such as asthma, excema and psoriasis. As long as proper

hygiene is followed, dangerous bacteria such as E Coli should not be present, he says. “We’ve come a long way from the day when we had to start pasteurising milk.” Houston says pasteurisation kills all bugs in milk, but the dead bacteria stay in the milk and will eventually rot, making it rancid. But the natural flora of raw milk maintain a balance, so instead of going rancid the milk will naturally turn into a kind of cheese after a couple of

weeks. Houston says cleanliness in the milking shed is “massive.” “Probably half of the milking procedure is preparation before you even put the cups on.” Cows that appear offcolour will not be used, and all cows’ teats are carefully inspected and manually cleaned with water and antiseptic iodine sprays. The milk itself is checked for the clumpiness that may indicate mastitis, before the cups are applied.

MPI REGULATIONS ■■

Only farmers meeting the requirements may register to sell raw milk

■■

Off-farm collection points are not allowed

■■

Raw milk must be labelled with use-by dates, information on refrigeration, contact details of the farmer, and specific warnings for consumers in high-risk groups such as the young, pregnant, elderly and those with weakened immune systems

■■

Consumers may buy as much as they like for their own consumption but it cannot resold in any form

■■

Farmers must keep a register of customers – albeit voluntary.

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DAIRY NEWS OCTOBER 11, 2016

6 //  NEWS

Markets take a breather PAM TIPA pamelat@ruralnews.co.nz

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holidays could have affected last week’s Global Dairy Trade auction, in which the overall price index was down 3%, say economists. Nevertheless the market was probably taking a breather after dairy auction prices jumped 10% in September, adding to August’s 20% rise. ASB’s rural economist Nathan Penny says September may have been the month when dairy farmers put the dairy downturn to bed. But his forecast of $6/ kgMS is not yet matched by other economists, who are sticking around the early $5/kgMS mark. BNZ is forecasting $5.30/kgMS and Westpac’s forecast is $5/kgMS. At last week’s auction whole milk powder (WMP) fell 3.8% to an average price of US$2681/t and skim milk powder

(SMP) was down 3.9% to US$2209/t. BNZ senior economist Doug Steel says China’s Golden Week holidays may have dented demand, especially for WMP. The mid-October auction may help shed some light on whether this was the start of a bigger unwind of the strong gains. “In context, it is only a small GDT price pullback following a very strong run,” he says. “We see the early-October result as consolidation following previous gains. Prices are 38% higher than six months ago.” Nevertheless prices could well ease a bit further near term, especially if milk production surprises on the high side. “We say this with an eye on NZ production,” he says. “We think production for the season as a whole will be down around 2% (on fewer cows, less supplementary feed).” This is a smaller reduction than some forecasts, but last year’s September production was abnor-

Nathan Penny

mally down because of bad weather. “But the bigger picture – milk production – has been generally falling in many key areas, including NZ, Australia and the EU,” says Steel. “Chinese demand remains important as ever, so too the large stockpile of SMP in Europe which, at least, has stopped growing. A recent push higher in oil prices is a plus for dairy prices at the margin.” A key factor to watch is international grain prices which remain weak, which may mean more milk supply in the US. Rabobank dairy analyst Emma Higgins says there were fewer participating bidders at last week’s event – 166 versus 175 at the last event.

Given the national holiday in China, it was not surprising that SMP and WMP moved lower. Fats and cheese have moved lower and these products may face some pressure due to the excess stocks held in the US and Europe. The result reinforces that it “may well be a wobbly road on the recovery”. Westpac senior economist Anne Boniface says much will depend on how the NZ production season progresses. Pasture conditions will be the key as many NZ farmers have taken a back-to-basics approach as they look to cut costs. “For now, we continue to assume some further moderation in world dairy prices over the coming months.” Penny says dairy markets had got a little ahead of themselves. “The auction price correction over August and September was rapid and large,” he says. “And now it also seems a touch overdone.

Global milk production tumbles GLOBAL MILK production has

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fallen faster than expected in recent months, with the resulting rally in global dairy markets expected to be sustained into 2017, according to Rabobank. In its latest Dairy Quarterly report, it says dairy export surpluses are expected to reduce by 3.4 million tonnes year-on-year, more than at any time since the global financial crisis. This comes at a time when dairy demand in domestic markets has been remaining firm and when dairy farmers will struggle to grow production – resulting in farmgate prices rising in most export markets.

Rabobank dairy analyst Emma Higgins says while last week’s Global Dairy Trade event had seen the index retreat by 3%, it was still up 21% for the year to date. Difficult conditions and low/ negative farm margins have led to a decline in milk production around the globe in Q3 2016, the report says. “At the same time, demand for dairy products, particularly butter and cheese, has remained strong in the US and has strengthened in Europe,” Higgins says. “Combined, the effect has been an even more dramatic reduction in surpluses available for export on to global dairy markets than had been expected just

a quarter ago.” Higgins says these recent market developments had renewed hopes of a sustained recovery in global dairy prices, however, headwinds still existed for further price increases. “The world’s dairy farmers, including those in New Zealand, will struggle to lift production in response to rising prices and this is expected to lead to a sustained price recovery into 2017,” she says. “But the price recovery is being driven by falling supply rather than by demand factors, so price increases will be limited by still weak global demand, a significant stock overhang and the strength of the US dollar.”

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DAIRY NEWS OCTOBER 11, 2016

NEWS  // 7

Your vote matters – Guy SUDESH KISSUN sudeshk@ruralnews.co.nz

PRIMARY INDUSTRIES Minister Nathan is

urging Fonterra farmers to go out and vote on the coop’s governance and representation plan. Guy says Fonterra has listened to farmer feedback and made some changes. “I would urge farmers to go out and vote,” he told Dairy News. Fonterra will hold a special meeting in Palmerston North on Wednesday (October 12) for a fresh vote. In November last year the co-op did not get the 75% support required and is now keen to gain farmers’ approval of the revised structure for electing directors and vetting board candidates. Chairman John Wilson is also urging farmers to back changes, intended to maximise the co-op’s production from farmers’ milk and grow their wealth. “Over the past eight months there has been a lot of good discussion on the unique governance structure of the cooperative. We have considered the different governance and representative roles including the process for

electing directors, the size of the board and the defined role of the Shareholders Council. The recommendations being put to the vote reflect those discussions. “There has been good feedback and acknowledgement that we have listened to our farmer shareholders and have adjusted the proposal where there were concerns, while still retaining the strong points of the original proposal. “This is a big step to ensuring we have the best people to lead our cooperative into the future. Now it’s up to farmers to have their final say so we can move forward and give our full attention to making the most of improving global markets,” says Wilson. The main variation to the recommendations put before farmers is a new election process for farmer directors. The earlier recommendation remains that candidates are selected by an independent selection panel, then approved by the nominations committee of the board and by the Shareholders’ Council before they are put forward to shareholders for their vote and support. In addition there is

now a path where candidates can stand outside this process and self-nominate. A first-past-the-post majority voting system will mean all director candidates now need at least 50% farmer support. The new recommendation addresses choice by including the option

for any eligible farmer to be able to stand outside the independent selection panel process and to be considered by farmers. Wilson says there is strong agreement that it is time to move Fonterra forward and for farmers to vote to improveme the election process.

The proposals put to farmers have the unanimous support of two independent expert panels, the unanimous support of the board and the backing of 33 out of 35 councillors. Postal balloting closed on October 10 but shareholders can vote in person at the special meeting.

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begun their bio-security work at the country’s main international airports and will help prevent congestion in the busy summer months, says the Ministry for Primary Industries. The new officers were among 40 MPI frontline staff who graduated recently in Auckland after seven weeks training. They were employed as part of MPI’s annual intake to ensure maximum capacity, says Steve Gilbert, border clearance director. They will work at the border to halt risky goods that may carry pests or diseases. The new staff will help reduce waiting times at airports for arriving international passengers by providing more help to search baggage for biosecurity risk goods. “The tourism boom is bringing in more travellers unfamiliar with NZ’s strict biosecurity requirements,” Gilbert says. More baggage searches are affecting queues at peak times. “The new staff will help alleviate the congestion, as will a new queue line at Auckland Airport this summer. The queue line will allow low-risk Australian and NZ passport holders to pass through MPI’s biosecurity controls more quickly.

DAIRY NEWS OCTOBER 11, 2016

8 //  NEWS

Sentiment drives rebound JOHN DROPPERT

INTERNATIONAL DAIRY commodity prices John Droppert, Dairy Australia analyst.

have staged a remarkable recovery in recent months, as global supply and demand slowly return to a more balanced outlook. In a familiar pattern, sentiment has raced ahead

of the fundamentals, with price increases occurring earlier and more rapidly than expected. With this in mind, caution is advisable, as current pricing remains vulnerable to reverses in sentiment until the fundamentals catch up. Nonetheless, the oversupply issue that has

maintained downward pressure on commodity pricing for so long looks to be receding, as New Zealand, Australia, and, increasingly, Europe are seeing milk production track below year-ago levels. Demand is presenting a mixed picture, with China returning to growth, while

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other markets are more sluggish. Buyers have been more actively seeking product as prices rise, but resistance to further increases is building. In Australia, the 201617 milk production season has begun with two months of significant yearon-year declines (averaging 9%) in milk intakes. Whilst enormous variation exists between regions and processors, margins are tight or negative for most farmers, and combined with the ongoing impacts of the 2015-16 price step-down, are likely to keep production constrained through 2016-17. The milk volume impact is expected to moderate as the season progresses and the benefits of higher rainfall and lower costs accrue, equating to a 5% fall over the full season. Weather conditions are providing some relief, though rainfall has exceeded useful levels in many regions, and is impacting farm operations, fodder conservation, and causing damage via flooding. The Australian domestic market remains characteristically steady, albeit with notable changes in key categories. While total milk sales volumes have grown moderately (increasing by 1.5% to 1,358 million litres over the 12 months to September), fresh white full cream milk sales have increased their share, up 7% in volume and 9% by value. This reflects an ongoing shift by consumers away from modified (reduced fat) milk varieties, which fell 6.7% in volume and value. Full cream now accounts for 61% of the fresh white milk category, up from 54% only three years ago. As widely reported in this column and elsewhere, branded milk has regained market share from supermarkets’ private label fresh white milk category, with branded milk sales volumes increasing by 7%, while private label fell by nearly 2%. The apparent reversal of the long term trend of increased private label share stems from con-

sumer responses to the media coverage of the 2015-16 milk price stepdowns. Cheese volumes have grown steadily over the last 12 months to April 2016, increasing by 2.2%, while cheese values have grown by 1%. Growth in sales of deli cheese have outstripped those of chilled cheese, increasing 5.6% in volume and 3.8% in value. This is a continuation of a trend observed over the past five years, where deli cheese growth has repeatedly outpaced that of chilled cheese. Growth in butter sales has slowed, but remains notable at 3.6% in volume and 3.8% in value. As part of -- and despite -- a tumultuous few months, various things have happened in the corporate sector. Fonterra will spend another $4.3 million in its Wynyard (Tasmania) cheese plant, streamlining its warehousing operations, and it will sell its Wagga, NSW, Riverina Fresh milk business. Midfield Group’s new powder dryer at Penola, South Australia continues to take shape, and the group has an agreement with Louis Dreyfus for it to market the finished product in the US, Middle East and southern Asia. Camperdown Dairy International is shelving its planned $500 million vertically integrated milk powder operation, and Murray Goulburn has reiterated plans to build a new nutritionals plant, originally flagged for Koroit, Victoria. As the returns from international markets recover, an active processing sector will once again be seeking extra milk to capitalise on renewed export opportunities. The capacity and inclination of processors to pass market upside through in the form of higher farmgate prices to offset this will also be influenced by the inherent risks in a largely sentiment-driven recovery. The market is in a much better place than this time in 2015, but downside risks remain and nobody wants a repeat of late 2015-16. • John Droppert is an analyst with Dairy Australia.

DAIRY NEWS OCTOBER 11, 2016

NEWS  // 9 Waikato Regional Council’s Whitianga pest plant officer Benson Lockhart releasing the beetles.

For hoof health and increased immunity…

‘Wandering Willie’ meets its match WAIKATO

REGIONAL Council, Thames-Coromandel District Council and Forest & Bird have released 400 beetles to combat a weed in New Zealand’s oldest arboretum. The beetles have been specially bred by Landcare Research to tackle tradescantia – aka ‘wandering willie’ – in the William Hall Arboretum and Walk at Thames. The beetles were released last month by the regional council’s pest plant officer Benson Lockhart, staff from Thames-Coromandel District Council and Forest & Bird, and community volunteers. “We’ve released three different types of beetle, each one attacking different parts of the plant – the leaf, stem and tip,” says Lockhart. “These beetles have a big job, because tradescantia is thick in the arboretum.” Landcare Research supplied 200 tradescantia tip beetles and 100 tradescantia stem beetles for release. “What’s exciting is that I was able to harvest about 100 leaf beetles from a site in Hahei where they’ve been doing great work in recent years to combat the tradescantia problem there,” he says. Tradescantia smothers the ground, preventing native tree regeneration. The plant

is also a nuisance for home gardeners and causes allergic responses in dogs. It is so widespread in NZ that manual or chemical control on a large scale is not feasible. “That’s where biological control comes in,” says Lockhart. “It uses a living organism to control another, very successful in NZ since the 1920s to safely control different weeds.” The tradescantia beetles are expected to support pest plant control work now done by TCDC, Forest & Bird and community groups in the arboretum. Ken Clark, from Forest & Bird in Thames, and his weekly working bee group work on the weeds in the arboretum. At Hahei, where the beetles are well established and working together, tradescantia is knocked back and karaka seedlings are growing. “The beetles have had time to get established at Hahei and it’s awesome to see some good results. We’re hoping to see the same here at the arboretum,” says Lockhart. Landcare Research does rigorous testing to ensure biocontrol agents are hostspecific in NZ conditions. The tradescantia beetles have been approved since 2011.

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extra restrictions for land use intensification ■■ additional requirements for forestry harvesting ■■ management of direct discharges to the rivers ■■ targeting particular catchments for special attention ■■ nitrogen discharge benchmarking and requirements for high emitters to reduce discharges ■■ requirements for greater planning of land use activities. Council chief executive Vaughan Payne acknowledges that suggested new land use restrictions – which would make it harder for people to more intensively farm land – had caused concerns, as will their taking effect as soon as the plan is publicly notified.

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DAIRY NEWS OCTOBER 11, 2016

10 //  NEWS

Top ten ways to profit against the odds New Zealand’s best dairy farmers tick? DairyNZ summarises the top 10 attributes of farmers who have shared their budgets online in its Tactics campaign. Tactics, seeking to help farmers succeed despite the low milk price, persuaded 18 dairy farmers with low production cost ($/kgMS) to make their budgets available online at dairynz.co.nz/tactics. The online visitor gets to see where these farmers are spending their money and the reasons for key management decisions. These farmers, around the country, achieve impressive results with

average farm working expenses of $2.99/kgMS for farm owners and $1.49/kgMS for 50:50 sharemilkers. How are they doing this? An intense focus on a few high priorities enables them to excel: these farmers are generally excellent business managers, have developed simple farm systems that can be profitable at very low milk prices and work with positive people. Below is a summary of ten management practices and farming philosophies common to most of these farmers. Sit down with your family, business partners or advisors and discuss each

area to identify which ones you can focus on to improve your business performance. 1. Longer term goals are essential ■■ A clear vision for the future and understanding of why they are farming. ■■ Short- and long-term goals are regularly reviewed. ■■ Good positive people surround the business, information is shared, and a good team of professionals like bankers and accountants are used to discuss farm performance and longer term strategies. 2. Farm systems are profitable, replicable

and simple ■■ Key farm management decisions revolve around profit. ■■ The farm system doesn’t change significantly as milk price changes – being profitable no matter the

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The online visitor gets to see where these farmers are spending their money and the reasons for key management decisions. milk price is important. This applies to all farms from systems one to five. ■■ The farm systems are simple and easy to operate and describe. This also made it easier for many of the farmers to eliminate marginal expense items that did not have high enough returns. 3. Very strong on financial management ■■ Aggressive debt repayment is practiced during higher payout seasons to reduce risk. ■■ The farmers generally prepare their own budgets and have full ownership of them. Monthly cashflow budgets are monitored very closely. ■■ Adjustments are made to budgets as milk price changes e.g. repairs and maintenance or fertiliser expenditure. ■■ Detailed benchmarking is undertaken: these farmers know how they perform from season to season and against their peers. 4. Pasture management is a top priority ■■ Pasture is the absolute priority and maximising the growth and utilisation is a key to their success. ■■ Very regular farm walks are completed to measure grass; the data is used in a range of feed budget tools. The

spring rotation planner is seen as essential in most cases. ■■ Pasture cover at calving is seen as critical and long rotation lengths are utilised to build pasture cover from late summer. ■■ Pasture damage is minimised with on/off grazing when required. 5. Cow condition at calving critical ■■ Achieving target cow condition at calving was a common theme with defined drying-off dates, once-a-day milking plans and in some cases crops and supplements used to achieve these targets. ■■ Winter feed is not wasted on fat cows: regular drafting of cows is practiced, based on cow condition. ■■ Young stock are well grown so they can compete in the herd. 6. The farm team is valued, recognised and included ■■ Staff are valued and recognised. ■■ The current economic situation is well communicated and farmers seek ideas from the staff on ways to improve the efficiency of the farm. ■■ Sharemilkers have open communication lines with farm owners. ■■ The farm plan is easy to communicate with staff and therefore easy to

implement. Staff must take holidays to ensure they get rest and minimise liability. 7. Soil fertility is monitored closely ■■ Soil fertility is very important and paddock soil testing is common, however where phosphate levels are higher than recommended levels, inputs are reduced in most cases. 8. Feed is imported based on price ■■ Imported feed is kept to a minimum on many farms. Those farmers that did buy higher levels of supplement used cost/kgDM or MJME as the main purchase criteria and wastage was minimised as much as possible. 9. Around 4-10% of the farm is sown in a variety of crops ■■ Given the farms are located from Northland to Southland, a variety of crops are grown on most of the farms including turnips, oats, barley, maize, swedes and fodder beet. ■■ High yielding crops are a focus, minimising the cost per kgDM. ■■ Crops are used effectively for re-grassing and to shift high energy feed to times of pasture deficit. 10. Repair and maintenance contractor spending is reduced ■■ Farm is well maintained in good years so spending can be reduced in very low payout seasons. ■■ Where possible, the farmer does repairs and maintenance. ■■ Machinery is well maintained. ■■

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DAIRY NEWS OCTOBER 11, 2016

12 //  NEWS

Southland hub to supply Fonterra THE NEW Southern Dairy Hub in Invercargill will start milking cows next season. The 349ha property will run 640 cows next season but plans to increase cow numbers to 800. AgResearch and DairyNZ have each paid $5 million towards the venture and the Southern Dairy Development Trust, made up of farmers, has

put in $1.25m. AgResearch chairman Sam Robinson says the organisation has played a key role in developing the property at Makarewa, 15km north of Invercargill. The new facility will be made up of two independently owned adjoining beef and sheep farms. “The plan is to convert the existing farm operation into a dairy

farm this season and then supply Fonterra at the start of the 2017-18 season. It will initially milk 640 cows but that will increase to around 800 cows,” Robinson says. “It will further the science developments in the sector.” DairyNZ chair Michael Spaans says its investment in the hub reflects the importance of dairying in the south

and is a prompt for innovation, industry-led research and education. “The hub will provide relevant, up-to-date local research for Southland dairy farmers. [Now comes] the development phase, and farmers will see research getting underway next season. “This is a key project for DairyNZ and Southland dairy farmers will gain a lot of value

from it.” The hub project recognises that dairy farming techniques used in other parts of New Zealand are not easily adapted in Southland, given its unique landscape, climate and soil types, DairyNZ says. Matthew Richards, chair of the Southern Dairy Development Trust, referred to the region’s long dairying history and

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Yoghurt maker cuts sugar A CHILDREN’S yoghurt made by Fonterra – Anchor Uno – has had its sugar content slashed (per 100g) to the lowest level of any such product in New Zealand. It contains 40% less sugar than the original Uno formulation. Anchor cultured brand manager Nicola Carroll says Anchor has cut the added sugar but kept the quality, taste and texture. “We are always working on our product formulations, fine-tuning, reviewing and improving our products,” Carroll says. Anchor Uno once had as much added sugar as competitors’ products but now contains only sugar added during the fruit preparation. It has no artificial colours, flavours or sweeteners. The company says sensory research has shown the new recipe is equally or more preferred than the previous one. The product has 52% share of the children’s yoghurt segment. Fonterra general manager nutrition Angela Rowan says Anchor understands the importance of quality dairy nutrition for children, “in line with recommendations from public health authorities such as the World Health Organisation”.

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Correction A STORY in Dairy News, September 27, p18 (‘Feed value booster keenly priced’) referred to J. Swap Stockfoods supplying dried distillers grain (DDG) in pellet form “which would usually add $50-60 to the price of 1 tonne of PKE”. This was incorrect. It should have read: “Products like dried distillers grain (DDG) in pellet form require extra milling and handling by the companies that make and distribute them. In the case of DDG pellets this usually adds $50-60 per tonne to the price.” The company is selling blends of PKE and products like DDG from $265 per tonne.

DAIRY NEWS OCTOBER 11, 2016

NEWS  // 13

Tighter belt keeping things trim – DairyNZ SUDESH KISSUN sudeshk@ruralnews.co.nz

DAIRYNZ HAS tightened its belt while working hard to deliver more value than ever for farmers, says chairman Michael Spaans. In his 2015-16 annual report, Spaans says lower milk prices have meant reduced milk volumes and, therefore, reduced levy income into DairyNZ. “But in spite of lower income, the DairyNZ board and management have been committed to ensuring we still achieve our longterm strategic plans, while continuing to deliver immediate support for our farmers. “We have also maintained a deficit over the last two years in a deliberate tactic to be more efficient with farmer money. Rest assured, we will continue driving

for outcomes according to our industry strategy.” According to DairyNZ’s annual report, it collected at least $67 million in levies from farmers last season: Fonterra farmers paid $56.3m, Open Country Dairy $4m, Westland $2.4m, Synlait $2m, Miraka $760,000, Tatua $561,000 and other dairy companies $900,000. In 2015, DairyNZ collected $68m from farmers. DairyNZ’s spending included R&D to create practical onfarm tools, onfarm adoption of goodpractice farming, promoting careers in dairying and advocating for farmers with central and regional government. Biosecurity, farm profit and R&D took up 64c of every dollar spent and again this year will account for most of the spending; environmental work and people will also absorb about $20m.

AGM in Ashburton DAIRYNZ WILL hold its annual general meeting in Ashburton

on October 27. Farmers are invited to come along and hear about DairyNZ’s investment priorities for the coming 2016-17 dairy season and where the levy is being utilised to help farmers through the current low milk price. Voting packs were sent to levy paying farmers last month. The DairyNZ AGM will be held at Hotel Ashburton from 11.00am; a light lunch will be provided at the conclusion of the meeting.

DairyNZ chairman Michael Spaans.

Spaans says this year DairyNZ will refresh the Strategy for Sustainable Dairy Farming. During the process, farmers will give their feedback on the future direction of the industry. Several key initiatives, including the Southern Dairy Hub in Southland and the Lincoln Hub in Canterbury, are also in the pipeline. They will contribute to innovation, industry-led research and education. “Even though farming has become more complex, the need to be competitive and farm responsibly remains the firm focus of DairyNZ. The goal to support profitable farm systems has not changed.

“Being more efficient and utilising pasture is the key to locking in gains in operating costs, as milk price moves to a more sustainable level. “We need to ensure consumer expectations are met and exceeded, including farming responsibly by maintaining high animal welfare standards and farming within environmental limits. “We must also attract talented people to our industry and provide positive work environments.” Spaans says the long period of low milk prices has not been seen in recent times, but DairyNZ has remained purposeful, determined and unwavering. “Farming has always been cyclical, but in today’s world farmers need to ensure their farm businesses are set up to cope with greater price volatility. “Even with lifts in the milk price, volatility will no doubt continue to be a risk. We have been encouraged to see, yet again, that farmers can and do adapt, and as an industry we remain competitive internationally. “We are long-time players in the global industry, with a wellestablished dairy infrastructure. We must stay internationally competitive and be more productive and profitable, so when we get out the other side we will be in better shape,” Spaans says.

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DAIRY NEWS OCTOBER 11, 2016

14 //  NEWS

Climbing back up the hill STEVE SPENCER

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farmers focussed on the big wet across the country’s south, let’s look at the background -- how the dairy market is behaving, and what it means for farmgate prices. Before this season began, we predicted a milk price range of $4.80-$5.20/ kgMS in southern states and that still looks good based on announced opening prices and step-ups. But as part of that, we estimated the commodity value at $4.10/kgMS. So how are we tracking on that front? Based on spot prices at the end of September (Figure 1), the weekly spot commodity value reached $4.70/kgMS. That’s good news, right? Yet does that mean a strong price rise? Not so fast. Our spot milk value is

a lead indicator of actual achieved prices. It is based on spot quotes that on our analysis over time lead actual prices by three to four months. That means the relevant period we should focus on in the current season is from March 2016 through to the end of the first quarter 2017. As you can see in the chart (Figure 2), the spot value took a long time to climb back up the hill towards $4/kgMS. In that time, the value of the A$ was virtually unchanged; the uplift has come mostly from improved prices of cheddar, skim milk powder and butter, as shown. There’s recently been a sudden jump in spot prices. Between midAugust and mid-September our spot milk value jumped quickly as successive strong GDT results pushed market expectations higher, as some

buyers came back to the market, partly because they feared that supplies may get harder to obtain later in the year. But our spot value did not go past the forecast average until the second week of September and has held its ground since. Based on how long the spot value sat below the $4/kgMS mark, in order for our full-year forecast to be met, the weekly spot value has to stay about $4.50/kgMS for the rest of the season, and obviously higher if full-year prices beyond our range are achievable. The world market has to keep firming if that higher value is to be realised. So what could get in the way of that? The global picture is looking better for the next six to nine months as the effect of the milk supply slowdowns in Europe and NZ combine to reduce

The global dairy picture is looking better for the next nine months as milk production slows in Europe and NZ.

the expected tonnages of product available for export. The EU is the most important of these and its output is expected to shrink in the December quarter of 2016 by close to 3% versus last year. Milk output in the final

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quarter of last year was stunning, so this is not a major cutback, and creative policy measures are being used to achieve that result. Not only is the European Commission kicking in 14 euro c/kg for every kilogram of milk cut from production, individual countries are also chiming in, e.g. France, as are some companies. At least 50,000 farmers have applied to take EU taxpayers’ money and are promising to cut output. Dutch co-op FrieslandCampina is also paying 6-10 euro c/kg for reductions in milk over the next six months. However, other factors are in play. Farmgate prices are again rising and this will persist given the recovery in EU wholesale product prices in recent months. Feed input costs remain low, so black ink

may not be far off for many farmers. Milk prices have been low for months, and milk supply was in steady decline before these incentives took effect. Because the intervention system is taking a lot of milk powder off the market, milk is scarce in some regions, creating other tensions. For example, the spot market for raw milk in the Netherlands is this week offering 40 euro c/kg. It’s worth more for some to actually increase output. The net effect of these competing influences on milk supply will be interesting. The more complex piece of the puzzle is how EU processors use their milk. As milk supply slows, and a massive stockpile of skim milk powder sits in warehouses around the region, processors will

seek other uses – most likely in more valuable cheese lines. Meanwhile New Zealand’s season is finely poised. Most Kiwis forsee less milk over the season, to help with the global rebalance. But milk prices for the season will now easily exceed NZ$5/kgMS which, coupled with a good season for many farmers, may encourage more to increase milk flows. Once a cash break-even is reached, every kg helps restore cashflows. The overall picture is improving nicely for the second half of this season, but many local producers who have culled cows may not have enough milk to take advantage of the turnaround. • Steve Spencer is a director of Australian food analysis and consulting company, Fresh Agenda.

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DAIRY NEWS OCTOBER 11, 2016

16 //  WORLD

Global ice cream, chilled dairy plan NESTLÉ IS teaming up with a big European ice cream maker, R&R, to set up a global dairy business called Froneri. It will make and sell ice cream, frozen food and chilled dairy, combin-

Nestlé’s Australian ice cream business is now part of Froneri.

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frozen food business and its chilled dairy business in the Philippines. In Australia, Froneri owns Peters Ice Cream, once owned by Fonterra and later sold to Nestle. Froneri expects sales of $3.8 billion in 20 countries; it will employ 15,000 people and will be headquartered in the UK. R&R and Nestlé have worked together for 14 years, initially in the UK and Ireland and more recently in Australia and South Africa where R&R licences Nestlé brands. Nestle chief executive Paul Bulcke says this is an exciting growth opportunity. “Froneri will capitalise on complementary strengths and innovation expertise, combining Nestlé’s strong and successful brands and experience in out-of-home distribution with R&R’s

competitive manufacturing model and significant presence in retail.” Ibrahim Najafi, R&R Ice Cream chief executive, applauds the potential of Froneri and the opportunity for R&R to combine with the biggest and best food business in the world. ‘R&R has gone from strength to strength in the last few years and the blend of people from the two organisations will create a leading team.” Luis Cantarell, Nestlé executive vice president Europe, Middle East and North Africa, will chair Froneri’s board of three Nestlé executives and three appointed by private equity firm PAI Partners, R&R’s owner. Ibrahim Najafi will be Froneri’s new chief executive. Nestlé and PAI will have equal equity interests in the venture.

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AUSTRALIAN DAIRY farmers have been lining up for Dairy Australia’s free one-on-one Taking Stock sessions with experienced dairy advisors. To date 695 dairy farmers in Victoria, Tasmania, South Australia and southern NSW have registered for the three-four hour sessions at their kitchen table, at which a farming family and an advisor analyse the business, look for options and create an action plan for the season. Farmers’ strong demand has been met in reasonable time, and 65% of sessions are now completed. In Victoria, 541 dairy farmers registered; demand was about the same in all regions. Participating farmers surveyed say they are well satisfied with Taking Stock, managed by Dairy Australia’s regional development staff. At least 90% of farmers say they are confident to go ahead on their action plan. Dairy Australia spokesman Chris Murphy says the farmers asked for it. “Taking Stock… gives the opportunity to take time out from the business for three or four hours and have a meaningful discussion about the current situation and plans for the future,” Murphy says. The type of analysis that Taking Stock offers includes: ■■ Understanding and managing your budget ■■ Identifying cost-saving options ■■ Calculating pasture consumption ■■ Managing debt and your balance sheet ■■ Working with the people in your business ■■ Understanding extra support services that can be accessed, including counselling and health services ■■ Creating an action plan.

Dairy Australia’s value to farmers DAIRY NEWS OCTOBER 11, 2016

The current farmers to a single in which milk levels while the the Productivity WORLD  financial interest in ON BEHALF of //trend 17 meeting! production has fallen profit margins of Commission for a for farmers to exit Farmer Power, which the outcome. Since its formation, from 11 billion litres the manufacturers truly objective review the industry (by The last levy poll, represents dairy Dairy Australia has to just over 8 billion increase. of Dairy Australia and selling their farms which reportedly farmer members received around litres (while New This has led the value it delivers to to other producers cost Dairy Australia in the south-west $500 million from Zealand’s production to significant farmers as well as the or converting to around $750,000, of Victoria, we government. resulted in only applaud the stand more profitable beef What farmers an estimated 600 taken by Senator production) should “What farmers witness are their funds witness are their David Leyonhjelm in dairy farmers ring alarm bells for funds (typically opposing the changes attending workshops being spent on lavish events and offices, the government, $5,000-$7,000 per to the five year poll of nationwide. annual forecasts consistently predicting but instead Dairy farm) being spent Dairy the dairy levy.*MILK processorAustralian improved milk production with no at our site in AUSTRALIAN Lion milk from WA farmers Australia spreads the on lavish events who howeverstrategies We are concerned we... decided to is resuming the sale of whiteFarmers, milk in Bentley; for achieving this, and a message that all is and offices, annual all licensed our white milk range under Western under the contacted Masters relaunch that thisAustralia is just the failure to advise the government about the Masters brand. forecasts consistently well. dairy farmers callingbrand. There will be some latest illustration of the true state of the industry.” Pura branding to help consumers in the Lion Dairy & Drinks managing As the number predicting improved for farmers to how Dairy Australia director Peter West says the Masters transition.” milk production support these change, of farmers declines fails to represent Also to be launched will be a new brand is what its dairy farmers and the with no strategies for a limited the interests offor. dairy did so with further, Dairy compulsory levies on has doubled over the disillusionment Masters Extra Creamy milk for coffee; community asked achieving this, and a budget of around farmers and is an farmers in addition same period) and amongst the Australia will “We listened to what the WA it has improved stability and frothing, failure to advise the $3,000-$5,000, attemptsupplying to eliminate contenttoand standardised farmers our dairy milk 4.3% fatwhich around $300m the number of dairy remaining dairy presumably need to to removein seasonal variances. and WA people wanted and have a protein government about elicited response farmer’s democratic government farmers has shrunk farmers about how continually ramp up has said it will spend $43 million responded. from only a Lion small rights to have a say. funding (with no from 23,000 to 6,500. their industry is run, the true state of the the levy even more “Masters has... been produced over three years on modernising and industry. minority of farmers. The panel direct financial The board of as is well illustrated in order to secure its locally at the Bentley site for 50 expanding its Bentley milk plant in Australia’s dairy We believe they do that developed Dairy Australia by the fast declining its growth in from the years, so we understand the strong Perth to underpincontribution own survival. exports used to reflect the views the proposals dairy manufacturers appears to be heavily membership of the Western Australian market. community connection to thenot brand.” Chris Gleeson, account for about of the majority, forWest changing the had repeatedly their presence influenced by dairy Australian Dairy “Thisand signals despite our commitment says farmers Western Australia dairy for the asked Japanese-owned company to to are 50% of milk produced Crossley VIC the results tainted levy the process was on the board). manufacturing Farmers as well as On behalf of term,” West says, “for profitable resume making but this has fallen by a the failedlong process. Far from advancing interests, and has state bodies. dominated bywhite milk under Home-made Masters range of milk is Masters brand, and WA consumers said growth in milk-based beverages, Farmer Power to around 25%, and Farmer Power, which the interests of watched farmgate We repeat our people who are not preferred by Westthe Australians. they didn’t think Lion’s Pura White white milk and our other key dairy *Ed note: The changes dairy farmers, price for milk previous calls made Australia could well independent of Dairy has no funding categories.” Milk was locally made. have beenpublished passed Dairy Australia hasmarketbeing at well to the Minister for of 54.7c/L. be a net importer has been Australia whomilk soldbase, Lionable will have 29 dairy farms supply at thekept Bentley site. It will pay average milk price dairyoffarmers thesince highest “All freshand white under overseen an industry below sustainable Agriculture and milk in 10 years’ time. into law. to attract over 600 therefore have a “We are proud to be paying our price in Western Australia,” West says. the Pura brand in WA was made using milk for products made for the WA these suppliers a competitive weighted

Public pressure forces Aussie processor to backtrack on brand

Bega to retire GOThead SOMETHING ON YOUR MIND?

BEGA CHEESE chief executive Aidan Coleman will retire in January 2017. Coleman, a former Fonterra GOT SOMETHING on yourBrands mind about the latest issues affecting Australia executive, served Bega’s chief our dairy industry?asPut your pen to paper or your fingers to your executive for five years. keyboard, and let our readers know what you think. Bega executive chairman Barry Irvin Don’t forget to put your name and address. says Coleman has done a wonderful job. Note: Letters may be edited. “His focus on business and people can be witheld from publication on request.) development(Names has been a great asset to the company. Everybody who knows and works with Aidan respects his leadership skills and personal qualities. “We wish Aidan all the best in his retirement. Bega Cheese is well advanced in the recruitment process and Aidan will work Aidan Coleman. with us to ensure the transition to new leadership is seamless.” Six weeks ago, Bega announced its 2016 respond to volatile market circumstances results; net profit rose 132% A$29 million. reflected our values and strategy [in maintaining] commitments to our dairy farmers Revenue was up 7.5% to A$1.2 billion. The company says big increases in while achieving strong revenue and profit global dairy production, softening in growth,” Irvin says. Bega Cheese produced 238,000 tonnes demand in China, sanctions in Russia and a highly competitive Australian market chal- of dairy products in 2016, a 6% increase on lenged dairy farmers and companies. This the previous year. The company operates in four market all turned tumultuous when Fonterra and Murray Goulburn announced retrospec- sectors: dairy ingredients, food service tive price cuts to their suppliers, says Irvin. and consumer packaged goods, nutrition“Bega Cheese’s... stability and ability to als and bio-nutrients. EDITOR@DAIRYNEWSAUSTRALIA.COM.AU

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DAIRY NEWS OCTOBER 11, 2016

18 //  OPINION RUMINATING

EDITORIAL

Lame-duck effort

MILKING IT... Pesky beef calves

IT SEEMS Fonterra has been caught flat-footed over the supply of milk powder for calves. Calf rearers are reporting a shortage of the coop’s Ancalf powder; the co-op is reporting unusually high calf numbers this season -- nearly double those of last year. The problem, it seems, is higher numbers of beef calves being reared -better than milking calves because of the lower milk payout. The shortage is expected to persist for a few weeks, prompting suggested alternatives such as Brown Bag product, early weaning and shifting calves onto meal.

Train journey turns sour

A BIZARRE passenger train crash into a herd of cows sparked mayhem for travellers in England, leaving a gory trail of dead livestock, with many cows unaccounted for. At least 11 cows died and 15 were missing after they wandered onto train tracks and were hit by a southbound train near Peterborough, northwest of Cambridge. Among the disrupted travellers were many Arsenal fans on the northwards line, who were unable to make it to their team’s clash with Burnley. Tim Stillman tweeted, “Our train’s turning back to London. First game I’m missing in nearly 15 years and it’s cos a train hit a cow.” On the bright side, Arsenal beat Burnley 1-0.

Radioactive cows?

IN AN abandoned Japanese village, cows grazing lush green plains begin gathering when they hear the familiar rumble of the ranch owner’s mini-pickup. This isn’t feeding time, though. Instead, the animals are to be measured for the effects of radiation 15 times above the safe benchmark. The cows’ pasture is near Fukushima, a name synonymous with nuclear disaster. This former agriculture haven once had 3500 cattle and other livestock. Farmers who defied a government order to kill their cows continue to feed and tend about 200. But the herds won’t be used as food; now science is their mission. Researchers every three months test animals within a 20km radius of the Fukushima plant, where three reactors suffered core meltdowns after being swamped by a tsunami in 2011. It is the first study of the impact on large mammals of extended exposure to lowlevel radiation.

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Too much of a good thing

AN INSECURE barn door proved costly for a French farmer when half his cows gorged themselves to death after escaping from their pen. Coueron, western France, farmer Anthony Vaillant left the door insecure, allowing 46 cows to wander out. The animals made their way to a nearby food store holding all their winter rations -- a high energy supplement harmful if consumed in large quantities. They ate the lot. “It’s like an overdose,” Vaillant told the local newspaper.

IT’S ALL happening on Capitol Hill. US lawmakers are bracing for a charm offensive from the White House. President Obama is using the last days of his presidency to pass the Trans Pacific Partnership (TPP) agreement in Congress, a tough task given that most politicians on both sides of the aisle in Washington are against the deal. There is talk of the White House tabling the TPP legislation during the ‘lame-duck session’, so lawmakers are bracing for calls from the White House. Connecticut Democrat representative Rosa DeLauro told a news conference the White House would do “virtually anything they need to do to get the votes”. ‘We should anticipate more free rides on Air Force One, visits to the White House, special events in members’ districts to try to gain favor for the deal. The administration will be relentless.” US dairy farmers are backing the deal: National Milk Producers Federation president Jim Mulhern says although TPP “achieves less than we wanted in terms of throwing open new markets in Japan and Canada, I am particularly pleased that we did not concede to a huge surge in new imports”. So, why is President Obama struggling to garner support? It’s election season in the US and both Donald Trump and Hilary Clinton oppose TPP. Bernie Sanders is credited with having helped shift Clinton’s position during their primary battle. She had backed the deal while serving as President Obama’s Secretary of State. The TPP is enormous: the 12 countries involved account for 36% of the global economy; the US is the world’s biggest economy and Japan is the third-biggest. For New Zealand, tariffs on our exports to TPP countries would be eliminated, except for beef exports to Japan (where tariffs will fall markedly) and a number of dairy exports into the US, Japan, Mexico and Canada. On current trade volumes, this amounts to tariff savings of $259 million a year once TPP is fully implemented. Prime Minister John Key recently warned the US: the region will not wait for you. Asian countries are determined to grow, with or without the US. Primary Industries Minister Nathan Guy recently returned from the US feeling slightly more confident about TPP clearing the hurdle on Capitol Hill. But his message to farmers and business leaders in Nebraska was clear: if TPP fails it will disadvantage both NZ and the US. It will mean others in Asia will set the rules for trade. President Obama is facing one of the toughest tests of his presidency: an uphill battle to woo lawmakers and ensure the US doesn’t miss the TPP boat. Failure in the US could spell the end of TPP and give birth to a new agreement that excludes the world’s largest economy.

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DAIRY NEWS OCTOBER 11, 2016

OPINION  // 19

Going the extra mile is getting us through DairyNZ chief executive Tim Mackle has thanked farmers for helping each other during the downturn in dairy prices. In DairyNZ’s 2015-16 annual report Mackle spoke of the team effort in the industry. Here is Mackle’s report. AS ALWAYS during challenging times in our industry, farmers have stepped up to be their best and many have helped others get through. This year DairyNZ boosted the Tactics programme, immediately visiting farmers to make sure they were aware of, and had access to, the right support. During these visits we came across farmers going above and beyond to help each other out. We also provided more support for new farm owners and new sharemilkers, as they have more debt to manage. More than 420 dairy farmers volunteered as short-term mentors to provide support and advice on many subjects including animal management and personal wellbeing. Throughout the Tactics campaign, we continue to work with the dairy companies, rural professionals, banks and other key groups like Federated Farmers, the Dairy Women’s Network and Rural Support Trusts. We must maintain our competitive edge as an industry to drive efficiency throughout our businesses. To help meet this objective, DairyNZ refreshed its focus on pasture as the main feed source and our key competitive advantage. Whether a low, medium or

high input system, homegrown pasture is the largest and most important feed resource a farmer has. A focus on pasture is the key to helping get through this prolonged low milk price, as it has in past downturns, and to underpin our future global competitiveness. Our successes in the past year have included the two-year report on the Sustainable Dairying: Water Accord. The report proved that despite tough seasons, dairy farmers have made significant progress on meeting their environmental commitments. More than $1 billion has been spent over the past five years in environmental actions, including the biggest highlight -- 96% of dairy cattle being fenced off from waterways on farms; that equals 25,656km of waterways fenced. Other highlights for DairyNZ this year include: ■■ the Forages for Reduced Nitrate Leaching project has identified that alternative pasture species and cover crops can achieve substantial reductions of nitrate leaching ■■ enabling 750 sustainable milk plans or consent process support for farmers from Northland to Southland ■■ helping 12,600 children visit dairy farms

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■■

and learn how milk is produced through the Rosie’s World Find a Farmer programme 800 dairy farmers attended our biennial Farmers’ Forum at

Mystery Creek, while 450 attended SIDE in Invercargill. I acknowledge the significant effort of our dairy farmers in lifting performance to keep up with

All the latest stories and more at www.dairynews.co.nz

Tim Mackle

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DAIRY NEWS OCTOBER 11, 2016

20 //  AGRIBUSINESS

Calm down over healthy rivers – realtor RECENT COMMENTS by BNZ agri-

business head John Janssen about risks supposedly posed by Healthy Rivers plans to rural land values are questionable, says Bayleys country manager Simon Anderson. There is no need for nervousness, Anderson says. The Healthy Rivers plan – the latest one is for the Waikato and Waipa rivers -- requires rivers, and the lakes within their catchments, to be swimmable and fishable within 80 years. The plans result from the government’s National Policy Statement on Freshwater Management. They are prompting changes in how farms will operate in coming years, e.g. tighter controls on key nutrients such as nitrogen and phosphate, and on bacteria levels and sediment losses. But Anderson says the plans have lengthy timeframes so that, realistically, farmers – and communities -- can work to improve water quality.

“The Waikato plan has an 80-year timeframe to bring that goal to reality. These changes will not come overnight, and they are being clearly signalled.” And extensive consultation periods are allowed: the Waikato plan allows 80 working days for submissions, pushing the closing date well beyond the standard 20 days, into next autumn. “With one million hectares in the Waikato catchment… its communities deserve that sort of time to consider how to respond to such a far reaching plan,” Anderson says. A report earlier this year by dairy consultant Phil Journeaux is shows that moves to reduce farming’s environmental footprint could somewhat depress land values over coming years, Bayleys says. Journeaux reckons the national impact of environmental constraints on farm production could depress farm land value by $16.8m. His work shows that a farm’s location in regard

to community and recreation facilities and schools can more strongly affect its value than can its profitability. But there’s a catch in a farm’s proximity to rivers and lakes: this could harm its value as time goes by. Waikato registered valuer Byron Gray, of Curnow Tizard, says it is too early to say whether the Healthy Rivers plan is affecting property values. The proposed rules may cause some properties to rise in value, including those limited in scope for conversion to arable use. “For example, growth in Pukekohe is causing growers to look for [cheaper] land elsewhere; this is particularly evident in Matamata and Pukekawa,” says Gray. “A restriction on land-use changes may lead to increased competition for arable land in the medium term.” He says properties where the farmer is working on environment issues, for example, planting waterways, and those

The Healthy Rivers plan should not affect nearby land values, say Bayleys.

already compliant with the proposed rules, are likely to be more valuable than properties needing work to comply. “More farmers are planting riparian strips to absorb phosphate losses, and native trees and wetlands to soak up nitrogen loss, and they are fencing around waterways… adding aesthetic

and economic value.” Bayleys North Canterbury rural specialist Dean Pugh says buyers of rural real estate know about the nutrient regimes in different regions, and the need to take specific catchment regulations into account when making land use and value decisions on properties.

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DAIRY NEWS OCTOBER 11, 2016

AGRIBUSINESS  // 21

NZ, Sri Lanka join forces on farm pilot PRIMARY INDUSTRIES Minister Nathan

Guy is applauding the news of a FarmIQ technology pilot in Sri Lanka, announced recently by Prime Minister John Key and Sri Lankan Prime Minister Ranil Wickremesinghe in Auckland. “The FarmIQ management system has been developed through the Primary Growth Partnership (PGP), and is cutting edge technology that can be applied to a range of farming activities,” says Guy. “It works by capturing and analysing data throughout the value chain so farmers can better link onfarm practices to farm outputs and revenue. “The Sri Lankan FarmIQ pilot will specifically measure the impact of dairy farm inputs and practices against milk

output, quality and profitability, and will help support overall dairy sector development in Sri Lanka.” The joint initiative between New Zealand and Sri Lanka is another activity under the Dairy Cooperation Arrangement signed between the two countries and has been extended to 2018-19. “I visited Sri Lanka in 2014, and got a good understanding of some of the challenges their small-scale dairy farmers face,” says Guy. “While we export milk powders to Sri Lanka, Fonterra also has in-country facilities that process Sri Lankan milk, benefitting farmers from both countries. “NZ has a lot of valuable expertise to share with the Sri Lankan dairy industry, and officials from both countries

Overseas visitors flood Taratahi AGRICULTURE TRAINING provider Taratahi last

week hosted visitors from eight countries. Chief executive Arthur Graves says Taratahi is seeing an increase in demand from all over the world for its “authentic agricultural onfarm education model”. Visitors from Cambodia, Laos, Vietnam, Myanmar, Timor Leste, Indonesia, China and the Solomon Islands visited the Wairarapa campus last week. Recently, Taratahi was visited by five Indian MPs, all with interests in agriculture and education, who saw business opportunities in working with Taratahi, Graves says. “The visitors are here for a range of different experiences, including short visits to understand what we do and can offer in New Zealand and offshore. In the case of the Solomon Islands, a group of 10 teachers will learn various aspects of dairying over four weeks. “Taratahi is recognised as expert in its field, delivering the latest in information, best practice and practical skills. We are also leaders in providing other countries with skills and expertise to create institutions and deliver courses that mirror what we do in NZ.” Sixty students and seven staff from the English Language Training Organisation (ELTO) arrived last Thursday; this was the organisation’s second visit this year. They came from Cambodia, Laos, Vietnam, Myanmar, Timor Leste and Indonesia, looking this year at sales and marketing, agricultural/horticultural practices and technology.

believe FarmIQ will make a difference to the performance of local farmers. “The pilot could also lead to further opportunities for the FarmIQ system, such as those

occurring with other PGP programmes like Steepland Harvesting which is exporting forest harvesting machines to British Colombia. “The two-way trade

relationship between our countries is now progressing well, especially with the commitment the Sri Lankan Government had made with respect to dairy tariffs.”

Sri Lankan Prime Minister Ranil Wickremesinghe visited Auckland last week.

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DAIRY NEWS OCTOBER 11, 2016

22 //  MANAGEMENT

Variable-rate fert spreading takes wings RAVENSDOWN IS

taking variable-rate fertiliser spreading research to new heights in a spreading plane. The co-op says the Primary Growth Partnership

programme ‘Pioneering to Precision’, now in its third year, is beginning to pay off in spreading accuracy. Pilot Grant Lennox is a member of the research team, spreading fertiliser

on research farms. He says timing is important in aerial spreading. “You’re travelling fast so you need lead-in time to open and shut the

Ravensdown pilot Grant Lennox.

hopper doors. Before this programme [pilots] had to anticipate when to do this, which means you’re not always able to give your full attention to flying the plane safely. “The programme has removed the guesswork for me, with the GPS computer automating the hopper door, so now I can just focus on flying. It also is satisfying to see the consistency and how tidy every boundary can be because the doors are working with the scientists’ ballistic modelling and shutting the doors more accurately than I ever could.” Because fertiliser travels fast and takes a while to slow down, the science behind the particle movement is being tested by placing bins across varying topography to catch samples of the drops. “It’s a little bit like throwing a ball. The research is improving the accuracy substantially and is making my life a lot easier. “The farmer is also getting a better result because we’re not wasting fertiliser; it’s going exactly where it’s supposed to.” Lennox says it’s been great being a part of the research. “I’ve learnt a lot about the GPS technology and fertiliser properties and

how it is all connected through the Smart Maps system. It has given me more of a general overview and made my job more enjoyable.” He believes the quality and accuracy of spreading is better because of the research. “In the field projects we are getting better results than before. There is growing interest in the technology; it’s just a time thing until the science can be proven. “When I saw the catching trays being unloaded I could see the cover was even.... But I’m not a scientist and I’m only looking at it with the naked eye; the scientists may be seeing something different when they measure the sample spread and rate.” The computer programme in the plane interacts with Ravensdown Smart Maps, using soil test results to determine the required variable rate of spreading, instructing the GPS in the plane to spread just that and then showing exactly where it lands with the placement verification technology now being developed. “I’ve been aerial spreading for 11 years and this is the way things are going; if Ravensdown can make the whole PGP thing work then it will be a game changer.”

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

All the latest stories and more at www.dairynews.co.nz

DAIRY NEWS OCTOBER 11, 2016

MANAGEMENT  // 23

Lock in grass-fed gains – Mackle DAIRYNZ IS encouraging farmers to lock in gains achieved in the past two seasons, as pasture-first farming pays off with the rising milk price. Chief executive Tim Mackle says the increase to $5.25/kgMS for the forecast 2016-17 Fonterra farmgate milk price is terrific news. “This brings many farm businesses to around the 2016-17 break-even milk price of $5.05/kgMS, once retrospective payments and dividends are taken into

account. This means fewer farmers will need to borrow extra funds this season,” says Mackle. “Retrospective payments for next year have also been boosted by 20-25 cents in this announcement, to over $1/kgMS. “Farmers will therefore look at the advance rates and test the effect on their cashflow budget, and winter 2017 will look more promising as the retrospective payments come through.”

DairyNZ’s Tactics campaign continues to work with farmers to improve business returns despite the reduced milk price. “Many farms have developed a disciplined approach to their farm system, having reduced costs and maximised the amount of pasture eaten. “Now is the time to continue that focus and regain some lost income,” says Mackle. “Making maximum use of pasture is

the key to any farm’s profitability. With this price increase, it’s important to take the opportunity to lock in the gains made over the recent couple of seasons. “Most farmers who have debt have added to that debt following the successive cash losses. It’s crucial they keep a focus on generating cash to pay that back.” Farmers are encouraged to re-run cashflow budgets, talk with their bank and reforecast overdrafts and cashflow

for the season. The Tactics campaign has helped farmers control costs, make timely decisions, utilise pasture and focus on cost-effective systems during the low milk price. Budget case studies are available online, detailing the spending of topperforming dairy farms and helping farmers identify ways to minimise the impact of lower milk prices. www.dairynz.co.nz/tactics.

Woman contractor first to the top A RURAL Contractors New Zealand (RCNZ) board member and partner in the Matamata firm Slattery Contracting, Helen Slattery, has penetrated the ‘glass ceiling’ to be the industry’s first woman to gain a national certificate in infrastructure works supervision Level 5. The qualification covers core management skills including scheduling infrastructure works project resources, health safety and environment, monitoring project quality assurance and documenting infrastructure works projects. Specialist skills in civil plant management, civil works, pavement surfacing (multiple sites supervision), road marking, road works and rural contracting (management) can also be covered. This qualification is achieved by working through unit standards and evidence required. Each unit is assessed by an Helen Slattery industry-approved assessor. “What Helen has achieved is not only great for her, but the whole rural contracting sector,” says RCNZ trainer/ assessor Noel Blackwell. He says he has evaluated many training achievements over the years as RCNZ’s trainer/assessor and found Slattery’s work professional and easy to assess the evidence she supplied. “In this modern world of professional business, what Helen has achieved has put a sign out there that says, ‘Rural Contractors are professionals’,” Blackwell adds. “Helen has led the way and I know there are other rural contractors who are doing many of the Connexis (the ITO for infrastructure industries) national certificates. This will help the rural contracting industry.” Helen and husband Roger run Slattery Contracting in Matamata, which offers hay, silage, cultivation and other rural contracting services. She is also a board member of RCNZ. RCNZ chief executive Roger Parton congratulated Slattery on her achievement and says it is a testament to her commitment to the sector to be the first woman in the rural contracting sector to gain a Level 5 Certificate. “This goes to show that Helen is truly outstanding in her field and a role model to male and female rural contractors.” More information about RCNZ membership and qualifications can be found on the RCNZ website.

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DAIRY NEWS OCTOBER 11, 2016

24 //  MANAGEMENT

Women dominate Young Farmer comp NIGEL MALTHUS

NEW ZEALAND Young Farmers is applauding women outnumbering men in the annual FMG Young Farmer of the Year contest for the second consecutive year. In the first event of the 2017 round, at Ellesmere in early October, farm environment consultant Megan Hands (26) took third place in the Christchurch district contest and skills day on Saturday; she will contest the Tasman regional final on the West Coast next March. Hands was one of 14 women and nine men to compete in the Christchurch event, the second time women have outnumbered men in the district. The top three will contest the Tasman regional final and another five will go through from district events in North Canterbury, West Coast and Nelson/Marlborough until early December. Similar events will be held in the next few weeks in 20 districts and

seven regions nationwide. First and second places in the Christchurch event went to men – first-time competitor Simon Ferguson (27) and Robin Hornblow (28). Originally from Waikato, farm consultant Ferguson did not grow up on a farm but says he loved being connected to the land; he worked his way up to herd manager on a Landcorp dairy farm before studying agri-science at Massey University. Hornblow, a dairy farm manager at Te Pirita, is chairman of Dunsandel Young Farmers and competed in the Tasman regional final in 2014. It is a busy time for Hands, who works as a farm consultant for the Irrigo Centre in Ashburton, a joint venture by several mid-Canterbury irrigation schemes to provide technical support for local farmers. And she is campaigning for election to the Malvern Community Board, a west-side ward of the Selwyn District Council. Hands says she will work hard to get into the grand final in Manawatu

in July. She has already started listing things she must work on, including physical fitness, and is swotting up on farming knowledge to handle the quizzing. “The regional final is a big step up from the district final, I’m well aware. There are a few practical things… onfarm work, I need to work on, so I’ll be tapping the shoulders of a few people and saying ‘hey, can I come out to your farm and give it a go’.” Hands says contestants were not given scores for the individual modules but she believes the more technical modules were her strength at the district event on Saturday. These included firearms -- air-rifle target shooting and a gun safety -- AI, crutching, ram judging, foot trimming, driving a digger, erecting electric fencing, and interviewing. In 49 years only three women have contested the grand final: Denise Brown, seventh in 1981; Louise Collingwood, second and third in 2003 and 2001; and Katherine Tucker, seventh in 2012.

Bluestone Stud’s Yvonne Lee with Hereford bulls

Dairy beef genetics get a nod THE USE of easy-calving beef genet-

ics at the tail-end of the mating season is endorsed by an independent study led by AgResearch, says CRV Ambreed. Preliminary results of a five-year study released on September 13 say dairy farmers can produce calves with minimal calving problems by breeding their dairy cows with semen from proven beef sires, the company says. Bluestone Stud, 30km from Timaru, supplies its Fertabull short gestation Hereford dairy beef genetics. Stud owner Ben Lee says dairy beef is rapidly growing, “because it considerably increases the value of the resulting calf”. “Hereford beef is in demand and there’s a shortage of such animals in New

Zealand,” says CRV Ambreed marketing and sales manager Mathew Macfie. “Fertabull semen straws… contain semen from multiple sires, giving a cow a greater chance of getting in-calf. “The short gestation of the product gives farmers four or five extra days of milking per cow because the calf arrives earlier…. This means the cow’s return rate improves because she’s calved earlier, giving her body time to recover before insemination. These genetics calve easier and produce excellent meat growth quality.” “Farmers have a range of genetic options they can consider at the tail-end of mating. Easy calving beef genetics is one of them.”

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DAIRY NEWS OCTOBER 11, 2016

ANIMAL HEALTH  // 25

Pinkeye likely as Oz warms up THE SCIENTIFIC name

for Pinkeye seen in cattle is infectious bovine keratoconjunctivitis (IBK). The primary bacterium responsible for IBK is Moraxella bovis but more recently other pathogens have also been implicated. For clinical signs to develop, the bacteria first need to bind to the surface of the eye (the cornea) before releasing a cell toxin which causes ‘punch-like’ holes to form in the corneal surface. What are the risk factors? There are a number of contributing factors for Pinkeye which can lead to outbreaks on some farms. Anything causing irritation of the eye and damage to the corneal surface creates a favourable environment for Moraxella bovis. Ultra-violet (UV) radiation is a significant risk factor and helps explain why pinkeye is more common in the summer months. At this time other factors such as dust, pollen and seeds are also increased, causing mechanical irritation to the eye and subsequent corneal damage. Nuisance flies peak in the summer months and promote the spread of infection between animals. White-faced cattle or those with protruding unpigmented third eyelids are more prone to pinkeye infection. Some previously infected animals become carriers in the herd, shedding the bacteria in their tears from season to season and allowing spread of infection to susceptible individuals. What are the consequences of Pinkeye infection? Pinkeye tends to be more common in young stock, affecting up to 80% of some herds. The disease is very painful and can cause blindness which is temporary in most cases. Severely affected animals may have permanent loss

of sight. There are economic losses associated with decreased feed intake, poor growth rates, reduced production in lactating cows and potentially reduced value at market. Untreated pinkeye can also become a welfare concern. What does Pinkeye look like? Initially there may only be wetting of the face due to excessive tear production from the affected eye. This may be on one or both sides, from the affected eye down the animal’s cheek. The eyelids will be closed; the animal may blink excessively and/or seek shade to avoid sunlight. As the disease progresses, the surface of the eye becomes cloudy in the centre, often followed by formation of yellow pus surrounded by a characteristic pink ring. Ulceration of the cornea is common and in severe cases the eyeball may protrude and change shape. Treatment of pinkeye Early and prompt treatment results in the most favourable outcome. Topical antibiotics are required in most cases to enable a prompt recovery with minimal pain. In some cases an antibiotic is injected into the conjunctiva of the eye by a veterinarian and a course of injectable antibiotics may be prescribed. Eyepatches to cover the affected eye are useful to avoid sunlight during recovery. In extreme nonresponsive cases, surgery may be required to remove the damaged eyeball. Prevention and control of pinkeye Fly control is essential to help reduce the spread of infection and pour-on products registered for use in dairy animals can be used. It is important to always read the label carefully and check for any withholding periods. Avoidance of dusty paddocks with long grass, paddocks near bushland

and excessive yarding in dry, dusty conditions will help decrease the risk of pinkeye. Early identification, prompt treatment and segregation of affected

animals will help limit the spread of infection within the herd. There is one registered vaccine for the prevention of pinkeye in Australia (Piliguard, Coopers).

Early and prompt treatment of pinkeye results in the most favorable outcome.

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DAIRY NEWS OCTOBER 11, 2016

26 //  ANIMAL HEALTH

Avoid blues of second round down, dead cows A SECOND grazing round on North

Island dairy farms this spring is causing more down and dead cows than last year, says DSM ruminant technical manager Joe McGrath. This problem has occurred before, he says, “but perhaps, as farmers get better at managing their grass, cow milk production increases and the knowledge of health problems increases and the second round [of down and dead cows] becomes a bigger issue”. But it may not be occurring only during the second round. “It can also occur at the start of rapid spring growth and we sometimes see it during early autumn breaks.” McGrath says rapid grass growth is the main cause of the problem. “At this time of year the weather has changed from cold and wet to warm and sunny and growth rates are very fast. Grass protein, sugar and potassium

levels can cause problems you don’t find during the first round of grazing post-calving.” In contrast, saved winter grass is high in fibre, lignified, high in calcium and low in potassium, McGrath says. “It is great food for cows, but not great food for milk production, and thanks to its high fibre level it promotes salivation. Cattle consuming dry roughages are reckoned to produce at least 70L of saliva per day.” Saliva contains high levels of sodium and phosphorus which interact in the rumen with magnesium and potassium ingested in the feed. “But cattle grazing young lush protein-rich forages will have limited saliva production, resulting in inadequate levels of sodium recycling to the rumen. The rumen fluid will also be slightly acidic due to low levels of sodium bicarbonate entering the rumen.”

There are many consequences for the cow, chiefly a lack of absorbed magnesium. “This causes lack of energy and poor nerve control and is a requirement for the active absorption of calcium from the diet. This results in cows going down, sudden death and a drop in production and immunity.” Adequate blood magnesium is important to prevent milk fever because the mineral acts as a co-factor in the use of calcium, and it converts vitamin D to an active form that increases calcium absorption. “Therefore the down and dead cows may present themselves as calcium or magnesium down cows, and occasionally as phosphorus downs.” High protein grasses, especially those containing low levels of dietary fibre, can also predispose an animal to rumen bloat, McGrath says. This disor-

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der is frequently seen in cattle grazing young lucerne and clover but it is not exclusive to these forages. It is often associated with young grass of low fibre content. McGrath advises, “before the start of the second round ensure there is magnesium oxide (MgO) and salt in your cows’ diet. Typical rates are about 40g of MgO and 20g of salt/milking cow/ day -- higher than the usual amount of magnesium and salt already prescribed in their diet.” Seek advice from a qualified nutritional adviser, he says, and see the DairyNZ website for useful information on magnesium supplementation.

He cautions that feeding MgO can cause other health issues. “But at this time of year it is the magnesium of choice as it becomes highly available in the low rumen pH caused by second-round grass. “MgO also has a useful secondary effect at this time of year. MgO is a strong alkali and will help buffer the rumen against the low pH produced by second-round grass. Buffering can help reduce the negative effects of sub-clinical and clinical acidosis such as bloat.” The sodium from the salt can also help offset the excessive potassium from the grass and increase uptake of magnesium from the diet.

DAIRY NEWS OCTOBER 11, 2016

BREEDING/ANIMAL HEALTH  // 27

Kiwi-bred polled bulls guaranteed

CRV Ambreed polled heterozygous bull calf.

FROM NEXT dairy season CRV Ambreed will offer

genetics that will guarantee the birth of polled calves. The company reports the recent births of three homozygous polled bulls as part of its genetic development programme – the culmination of several years of controlled breeding. R&D manager Phil Beatson says the goal was to “breed bulls that had two copies of the polled gene”. “When the bull has two copies of the polled gene, you are guaranteed the bull’s progeny will all be polled, as all get one copy of the poll gene. Conversely, bulls with only one copy of the polled gene are referred to as heterozygous and their progeny has only a 50% chance of being polled.” The progeny of the polled bulls will not need disbudding – a costly and time-consuming intervention increasingly under scrutiny. For instance, 200 replacements in a herd may cost as much as $1400 to disbud. “Farmers also require their dairy cattle to have reasonably high indexes. Our three polled bulls, just born, are high indexing. Breeding polled cattle while at the same time having acceptable index is the trick,” Beatson says. Tokoroa organic dairy farmer Ged Goode started using semen from polled bulls on his 750 Kiwi-cross herd this dairy season. He is looking forward to CRV Ambreed’s offering next season. “The aim is to have the whole herd polled and producing A2 milk,” Goode says. “Horns are a health and safety issue as far as the staff and animals are concerned.” Two of CRV Ambreed’s polled bulls are HolsteinFriesian/Jersey crossbreds and one is a Holstein-Friesian bull.

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ings saw 265 bulls sold for an average of $2500 per head, and a top price of $3000. The sale was held on October 3 at Hangawera Station, Tauhei, north-east of Hamilton Rural operations manager Ian Mathieson says 95 registered bidders attended. “Our result in selling 100 more bulls than last year shows the confidence in our sale model which includes fertility testing, double vaccination, free delivery and finance packages.” Finance plans helped attract prospective buyers. “We had more positive feedback on the finance plans available this year,” Mathieson says. “We worked hard with our agents PGG Wrightsons and Farm Source Livestock to make buying easier. This was the seventh annual Hangawera bull sale.

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DAIRY NEWS OCTOBER 11, 2016

28 //  MACHINERY & PRODUCTS

Grizzly has bite and good manners MARK DANIEL markd@ruralnews.co.nz

WHILE THE debate

goes on about safety and whether to stick with a quad or switch to a sideby-side, the former still has a place with riders who need to tackle tricky terrain in the backblocks of New Zealand. The Yamaha Grizzly series has a history dating back to 2008, when it was released in the USA, where it is built. The machine is aimed at farmers, lifestyle block owners and recreational hunters who are looking for high levels of comfort and high end technology such as electronic power steering,

the Ultramatic CVT auto transmission and On-Command 4WD and diff lock systems. The heart of the machine is a singlecylinder 708cc engine with four valves and electronic fuel injection, said to push out 9% more torque and 6% more power than previous models. Dairy News tested the machine on rolling country in the heart of Waikato dairy country and found acceleration smooth and linear, and when pushed hard the machine certainly picked up its heels while having lots of power in reserve. The Ultramatic CVT transmission offers easy selection of park, reverse,

neutral, forward high and forward low via a stubby lever to the left of the rider’s seat, and uses a wide reinforced drive belt kept tensioned at all times, thereby suffering none of the free-wheel effect of other machines on slopes which requires throttle input to keep things under control; no such problem here. Rider comfort and safety is taken care of by a wide, comfortable seat and wide, deep foot wells which keep the riders feet planted and unable to be placed on the ground before the vehicle is stopped. Double wishbone suspension front and rear soak up changing terrain

with ease and offer up to 232mm of travel; 26 inch tyre equipment combines with this setup to offer ground clearance of 288mm. Kerbing that power and bringing things to a safe stop is taken care of by dual hydraulic disc brakes at front and rear, which proved capable of towing fully loaded PKE trailers during our test ride. With work in mind, the front rack has a 50kg rating, the rear 90kg, and the towbar is rated to a healthy 590kg. Completing the work-related package is a LED headlight, auxiliary work light and 12V powering day-to-day accessories. The company’s

Yamaha’s Grizzly set to tackle tricky terrain.

confidence in the machine is bolstered by the use of stainless steel for the exhaust system, and there’s a nod to its marine

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Moocall sends a message to the farmer an hour before calving.

Calving info with a flick of the tail CALVING COWS means late nights

and early mornings, and statistics point to around 18% of heifers needing assistance and 7% of calves dying at birth. So a new device launched at Fieldays should be welcomed by farmers looking for a few more hours sleep, but more importantly confidence that all is well in the calving shed or paddock. The Moocall device came about after farmer/inventor Niall Austin had a heifer that was experiencing calving difficulties, that resulted in a dead calf; the heifer had to be put down because of paralysis, all leading to a financial loss of around NZ$3300. The device, which mounts on the cow’s tail, contains a motion sensor that analyses the tail’s movement by referring to around 600 pieces of data per second, comparing to an algorithm, and predicting the onset of calving. This triggers an internal GSM device that sends a SMS text to the farmer or stockman’s mobile device, normally around an hour prior to the event. Messages can be sent to two different phone numbers, and the device’s status,

and that of others, can be viewed from a computer based dashboard that records any activity including calving Launched in 2015 after four years of testing and development, the device has been sold to at least 10,000 farms in 25 countries. It has ‘overseen’ 90,000 births, and along the way picked up many awards for technical expertise, design and construction, the maker says. Powered by an internal rechargeable battery which is capable of running for up to 30 days, the unit is attached to the cow’s tail opposite the vulva with an integral ratchet strap; its shape resists removal by rubbing or knocking off; and it is water resistant. Depending on calving patterns, the manufacturer suggests one unit can be used to monitor 30 cattle. It especially suits early- or late-calvers, heifers, animals calving at night or pedigree animals that might need a vet’s assistance. It should also suit stockmen working away from the farm, or in situations where the farmhouse is a distance from the calving area. – Mark Daniel www.moocall.co.nz

DAIRY NEWS OCTOBER 11, 2016

MACHINERY & PRODUCTS  // 29

Variable-chamber round baler stands out from the crowd LELY’S NEWEST vari-

able-chamber round baler certainly stands out from the crowd. The Lely Welger RP 160 V variable baler is a guarantee of a nicely shaped, high density bale, the company says. With a newly designed bale chamber using four endless belts, a five-tinebar camless pick-up of 2.25 m, and a 13 knife chopping unit, the designers have clearly been busy.

The bale geometry of the Welger RP 160 V has changed dramatically, with the bale formation enhanced from the start, with rollers positioned further into the chamber, ensuring better contact and bale rotation, which results in a high density bale with a good shape. As the bale grows, the tailgate moves downwards, forcing the bale to move in a rearward-direction, so reducing the pressure on

the feed-intake area of the baler. Four endless belts made of layers of synthetic and rubber offer optimum grip on the crop and can exert an impressive pressure on the bale. The belt layers are securely manufactured with a large overlap and are independent of each other; they carry a 20,000 bale warranty, although endurance testing has seen items last beyond 50,000 bales with

minimum stretch. All Welger variable balers have the constant pressure system (CPS) that increases pressure when the surface of the bale grows, so delivering consistent density throughout the bale. Hydraulics work with a mechanical spring system, building pressure until the pre-set density is achieved. The unique design of the belt tension system and the position

Lely Welger RP160 V variable baler.

of the CPS rams ensure the tension on the belts increases proportionally to bale circumference. The Varionet net wrapping system ensures net wrap is evenly applied across the bale, eliminating unwanted air pockets before wrapping and helping to improve feed quality. Replacement net rolls are easily loaded from ground level, saving time

and effort for the operator, and easily opened side doors allow quick access to a second storage location and increased access to the machine for maintenance and inspection. Central greasing banks and an automatic chain lubrication system, using foam pads as opposed to traditional brush systems, means all drive chains are constantly lubricated,

guaranteeing a longer life. The E-link Pro terminal is standard on the RP 160 V models for New Zealand. The large touch screen display provides all the relevant information required to ensure efficient baling and data analysis. The system is ISObus compatible, so any tractor can be easily connected, allowing you to use its own terminal. www.lely.nz

Extreme proof of toughness AFTER SIX years experience using the technology, Canterbury agricultural contractor Martin Bruce (M.A. Bruce Ltd, Darfield) vouches for the durability and reliability of the new Claas Max Cut cutter-bar. Commercially released in New Zealand in 2015, Max Cut has an award-winning one-piece, wave-shaped design that protects the knives and ensures maximum overlap for optimal cutting quality, efficiency and durability. Compared to the previous P-Cut cutter-bar, the cutting disc modules are set further forward, creating an enlarged cutting area; they have wear inserts with differing geometries, optimised as each pair of blades passes each other.

The cutter-bar has high torsional flexibility achieved by a special bolting process that matches the strength of welded seams, and the drive train is designed to be run from 850rpm, reducing fuel consumption by up to 20%. Extra-wide skids guide dirt and foreign material backwards and guarantee a clean finish, minimising wear and protecting pasture cover. MA Bruce Ltd contracts throughout central Canterbury, operating Claas harvesters and triple mower combinations; the firm was invited to participate in Max Cut pre-launch trials in 2009-10. Based on the results of two season’s trialling, Bruce went on to buy its first Disco 9200 with the new bars in 2012-13,

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followed by a second unit; each rig averages around 2000ha per season. Bruce comments, “Although they are starting to show a bit of wear and tear, they’re still pretty tidy machines for their age and I’d have no hesitation in running them for another couple of years.” Max Cut uses the Claas existing ‘active float’ hydraulic suspension, Safety Link safety module and quick blade change system. In the event of a collision, the module shears at a predetermined breaking point; and the mowers also have a ‘break back’ safety system that allows the mower to pivot backwards and upwards if an obstacle is encountered.

Claas Max Cut cutter-bar.

“The country we work in is rough on our gear and hitting things is a regular occurrence,” Bruce says. “Auto-swathing allows us to avoid having to use rakes, which can bring foreign objects into the swath, but over time we’ve hit irrigation anchors, posts and rocks but have never broken a Max Cut bar on the rear mowers.”

Bruce notes that though the Safety Links do not activate very often, the working conditions and terrain have the machines getting through 2000 blades a year; these are changed in around 30 seconds with a simple lever tool that releases the spring plate under the disc. – Mark Daniel www.harvestcentre.co.nz

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DAIRY NEWS OCTOBER 11, 2016

30 //  MACHINERY & PRODUCTS

Smarter than Kylie MARK DANIEL markd@ruralnews.co.nz

Pocket rocket: JCB 516-40 telehandler.

THINK OF the term ‘pocket rocket’ and Aussie songstress Kylie Minogue is probably the first image that comes to mind, but in the words of her song “I should be so lucky”, the JCB 516-40 telehandler is probably going to be more productive and require a lot less maintenance, while keeping the same nickname. Compact in dimensions – measuring only 1.56m wide and 1.8m tall – the 516-40 is big of heart, lifting 1.6 tonnes to 4m, as well as being able to lift 1000kg at 2m forward reach. This makes the machine particularly suitable to the likes of poultry farms, horticultural enterprises or agricultural situations where access is limited and high-end lift capacities are not required. A one-piece, single spine, fully welded chassis is durable and reliable and, like other key components, such as the boom and cabin, is dipped in an electrophoretic alloy solution, for superior protection against corrosion, before being powder coated for chip resistance and a long service life.

Motive power is delivered by a 2.2L, Tier 3 emission spec, Kohler engine making 47hp at 800rpm and 130Nm torque at 1600rpm, while a 2-stage hydrostatic transmission offers a maximum speed of 26km/h, and features a transmission dump system on the brake pedal to allow multi-functioning during loading and re-handling without sapping engine power. The main boom is a heavy duty construction with a minimum of 0.5m overlap between sections and hydraulic pipework routed through the boom section for protection and superior load visibility. Control is by single lever joystick for all functions, including forward and reverse, as well as flow rates for the auxiliary circuit, which has a maximum output of 56L/min. An adaptive load control system also serves to prevent overloading, while lock-out check valves ensure all main hydraulic cylinders lock out if there are any catastrophic hose failures. The cabin is mounted low, and offers easy access through a ‘stable door’ layout, leading to an air suspended seat and an area of about 0.9m wide. The upper door can be

pinned back to promote air-flow or the machine can be specified with air conditioning. Ergonomically laid out controls help during long hours, while backlit instruments take care of late nights or early winter mornings. A large forward windscreen, large side windows and oversize roof screen promote visibility for all loading functions, while the cabin is fully certified for ROPS and FOPS protection, ensuring the operator is protected at all times; bystanders should hear the reversing alarm. The manufacturer claims that the 500hr service interval for engine oils and boom wear pads is double that of competitors, that all daily checks and grease points can be accessed from ground level, and radiator hygiene can be taken care of by an optional hydraulically driven reversible cooling fan. As would be expected, a wide range of options can be specified including road and work lights, front screen guards and sun blinds, safety beacons, battery isolation and a fire extinguisher. @dairy_news facebook.com/dairynews

Kubota’s new zero-turn mower.

Kubota ZD series arrive KUBOTA’S ALLNEW ZD series zero-

turn mowers, the ZD1000 and the ZD1200, come with 54, 60 and 72 inch wide decks, 21 or 29hp Kubota diesel engines, hydrostatic transmission and pivoting front axles. The new series has the latest patented innovative

Aerodynamic Cutting System, which provides for more efficient use of power, resulting in better fuel efficiency and faster cutting. Key features are lowprofile tyres combining with an aerodynamic deck design to reduce rolling resistance, while

newly designed blades allow the mower to cut faster with less power requirement. Operator comfort is enhanced by premium high-back suspension seats; additionally, the ZD1200 comes with a 3.5-inch LCD display screen to allow closer

monitoring of vehicle functions. The ZD Series offers a reduction in steering control-lever resistance for easier manoeuvrability. The machines are on sale at Kubota dealerships from this month. www.kubota.co.nz

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ANY JOB YOU’RE READY

ZEA

OFFER ENDS NOVEMBER 30 TH DEFENDER HD8

OUTLANDER 570

$2000

$500

GENUINE PARTS AND ACCESSORIES*

FACTORY REBATE*

DEFENDER DPS

OUTLANDER 650 +

HD8 & HD10 MODELS

650cc MODELS AND ABOVE

$1000

$1500

GENUINE PARTS AND ACCESSORIES*

FOR MORE INFORMATION PLEASE CALL

OR VISIT

WWW.CANAMOFFROAD.COM

0800 020 074

ALEXANDRA BLENHEIM CHRISTCHURCH DANNEVIRKE DARGAVILLE FRANZ JOSEF GLACIER

GISBORNE HASTINGS HIKURANGI INVERCARGILL KAITAIA MILTON

FACTORY REBATE*

MORRINSVILLE MOUNT WELLINGTON MOUNT MAUNGANUI NELSON NORTH CARTERTON OAMARU

PALMERSTON NORTH PUKEKOHE RANGIORA NORTH CANTERBURY ROTORUA STRATFORD WEST

TAPANUI TE KUITI WANGANUI WASHDYKE WELLSFORD

©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 New Zealand by BRP NZ. Make sure that all laws and regulations, are respected. Ride responsibly. *Can-Am ready to ride offer valid untitl November 30th at participating dealerships only. Includes MY14, MY15 and MY16 models only. Outlander 650cc and above models eligible for $1500 rebate at time of purchase. Outlander 570 models eligible for $500 at time of purchase. Defender HD8 non power steer models receive $2000 RRP genuine parts and accessories at time of purchase. Defender HD8 DPS and HD10 DPS models receive $1000 RRP genuine parts and accessories at time of purchase. Defender Max Models not eligible for a rebate. ^3 year warranty covers MY13/14/15/16 Can-Am Outlander and Renegade, and MY16 Can-Am Defender models only. 2 year warranty covers MY13/14/15/16 Commander and Maverick models only.

We’re open for business, just up the road.

Wherever you are and whatever you’re farming or growing, you’ll never be far from one of our stores. We welcome farmers and growers from all walks of life and offer the same great service and value to everyone. 160 years of experience has taught us that being local counts. So when you need to down tools and go looking for the products you need to keep things ticking over, we’re just up the road.

There’s only one name you need to remember. PGG Wrightson.

Freephone 0800 10 22 76

www.pggwrightson.co.nz

Helping grow the country