Dairy News 14 February 2017 by Rural News Group

Banks support drought-stricken farmers. PAGE 3

STOP THE DROP

SMART BALER

Milk production tips PAGE 9

Designed for better yield PAGE 25

FEBRUARY 14, 2017 ISSUE 372 // www.dairynews.co.nz

TOURIST DRAWCARD “There are a lot of requests from off-shore to come and look at our calf rearing operations.” – Ian Farrelly PAGE 4

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DAIRY NEWS FEBRUARY 14, 2017

NEWS // 3

Banks supporting drought-hit farmers PAM TIPA pamelat@ruralnews.co.nz

Where’s Westland Milk heading? PG.05

Kudos from Fish & Game. PG.19

Big tick for drill. PG.24

NEWS ��3-13 AGRIBUSINESS �� 14 OPINION �� 16-17 MANAGEMENT ��18-20 ANIMAL HEALTH �� 22 FENCING & FARM BUILDINGS �� 23 MACHINERY & PRODUCTS ��24-27

MOST MAJOR banks are offering some assistance for drought stricken farmers. ANZ Bank was first off the blocks, announcing an assistance package for Northland farmers after the drought declaration. “This is the fifth drought in the last eight years for Northland, and while the recent boost in dairy payout has assisted cashflow, our priority is to make sure farmers can manage financially through this extreme weather event,” says Penny Ford, general manager Auckland & Northland, commercial and agri. The ANZ Assistance Package invites affected customers to talk to their banker to: ■■ Apply for short-term funding to assist them to cope financially with unexpected costs arising from extreme weather ■■ Suspend or reduce loan principal repayments ■■ Waive notice period requirements and avoid interest rate recovery costs associated with accessing funds on term deposit ahead of maturity date. ■■ Waive fees associated with restructuring business loans. ■■ Waive fees for term finance and investments which have the potential to improve performance in future. ANZ customers affected by the Northland drought are encouraged to contact their relationship manager. The package took effect on February 4. ASB’s Steve Jurkovich, executive general manager business banking, says ASB is monitoring the effect of dry conditions on its farming customers in Northland. “Each farming customer will be experiencing different impacts from the dry conditions based on their unique farming business,” he says.

Drought conditions evident on hills in Helensville, north of Auckland.

“Our rural managers are contacting customers to discuss ways ASB can assist, including interest only loan terms and additional working capital. “We encourage customers to talk with their rural manager if they have any concern about their financial arrangements or just need an understanding [person] to talk with.” Westpac says it is reviewing Northland farmer customers to ascertain what their individual needs may be. “Our agri managers have the capability to provide immediate financial assistance for those in need, with options including repayment holidays for lending, and business and personal financial assistance,” a spokersperson says. BNZ’s head of agribusiness John Jannsen says when lending in volatile climate areas, e.g. Northland, banks need to take a pragmatic and flexible approach to working with farmers to minimise unnecessary financial pressure when these events happen. “The majority of our clients in the area have businesses which reflect the volatile nature of the region.”

Rabobank’s northern North Island regional manager, Bruce Weir, says the bank is working with its affected Northland customers “to mitigate the impacts of the drought and ensure farmers are well positioned to rebuild production and their financial position when seasonal conditions improve”. “Rabobank takes a long-term view and understands that climate extremes, like the current drought conditions, are part of the business of farming,” he says. Rabobank will work case-by-case to assist farmers facing problems resulting from these events. “Our rural loans are specifically designed for farmers and offer financial flexibility to help manage through times of difficulty.” Weir says Rabobank employees have been contacting clients in drought-affected areas to offer the bank’s assistance. Affected clients who have concerns and who have not yet spoken to the bank are urged to contact their local rural manager or branch. @dairy_news

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DAIRY NEWS FEBRUARY 14, 2017

4 // NEWS

Synlait payout hike INDEPENDENT MILK processor Synlait has increased its 2016-17 forecast milk price by 25c to $6.25/kgMS. “International dairy commodity prices have improved further since our last announcement in November and although prices have eased slightly in early 2017 we believe $6.25/kgMS is now a realistic estimate for the current season,” says Synlait Milk Graeme Milne. Milne says global dairy production, except in the US, has kept falling, following the trend of previous months. “The industry still needs to work its

way through existing inventory in the supply chain, which has remained higher than expected,” says Milne. Synlait managing director John Penno says the return to a financially sustainable milk price after two challenging seasons is good news for Synlait’s 200 milk suppliers in Canterbury. “Our milk suppliers will soon be turning their attention to the off-season and this announcement will give them confidence in their cashflow planning,” says Penno.

Ian Farrelly believes there is potential for tourism on his large-scale calf rearing operation in the Waikato.

Large-scale calf rearer eyes tourism SUDESH KISSUN sudeshk@ruralnews.co.nz

AFTER 23 years of rearing calves, Ian Farrelly is ready to take the successful business to another level. With the 485ha farm nestled at the base of Mount Kakepuku, an old volcanic cone, tourism is on the mind of the former ASB banking executive and company director. Farrelly Calf Rearing is a thriving business; 10,000 calves are reared annually and sold to farmers throughout the country. Week-old calves are bought from saleyards; they are fed milk for six weeks and then introduced to pasture and grain for another six weeks before being offloaded. Farrelly, who stepped down from the Fonterra board last December after a nine-year stint, was planning on a more hands-on role on the farm this year. However, another Fonterra director Michael Spaans stepped down due to poor health and Farrelly was parachuted by the board to cover for him until the annual meeting in December. Farrelly believes there’s a real opportunity for tourism. “There are a lot of requests to come and look at our calf rearing operations; lot of requests from offshore,” he told Dairy News. The sprawling farm already has three large specialist calf sheds; Farrelly is planning on building a fourth specially to cater for tourists along with a large café where visitors can come by buses or cars. The adjoining Mount Kakepuku, with stunning views across the Waikato, provides another attraction for bus tours. “I’m keen to take the business to another level; rear more calves and keep reinvesting in the business with tourism being one of the opportuni-

Milk is bought from farms in the Waikato to feed the calves.

ties.” Farrelly Calf Rearing started as a small business and had its early challenges. Farrelly recalls buying 70 calves and losing about 20% of them during the first year. He says the company resolved not to expand until it had mastered the art of calf rearing. For the next five years 200 calves were reared annually; no calves were lost and top quality animals left the farm. “The mistake many tend to make is that we try to grow to get away from the problems; we stayed put, learnt from our mistakes and then expanded from 200 to 1000 and bought more land” Farrelly handles calf sales, leaving the running of the farm to his farm manager and 11 staff. Calves start arriving April and the last batch arrives in October; they are sold allyear round. Milk is bought from farmers around Waikato to feed the calves. The calves go through 5000 bales of hay and 800 tonnes of meal during the year; half of which is made on the farm and rest bought-in. Farrelly says the key in the business is ensuring calves arrive on their new farms ready to grow. “So we prepare the calves very

well for sale; they are weaned off milk at six weeks but they are only fed once a day milk and that encourages them to develop the rumen quite a bit earlier than they normally would.” Having lots of land means calves on the farm are exposed to pasture early. “So once we have weaned them off milk after six weeks they are predominantly eating grass; supplemented with grain and hay right through.” Farrelly’s farm also sells 2000 dairy heifers annually; some of these heifers have ended up in China. The dairy downturn over the past two seasons hasn’t impacted the business; it has remained profitable by buying and selling at a margin. Farrelly has continued to re-invest in the business over the years; buying seven adjoining farms planting 1000 native trees annually and in the last 12 months putting in a $50,000 effluent system. Farrelly still has a penchant for serving on boards; he remains a director of five other companies, including Spectrum Dairies, a dairy farm operator. Farrelly has shares in the company which produces 3.5million kgMS in both Canterbury and the Waikato.

DAIRY NEWS FEBRUARY 14, 2017

NEWS // 5

Where’s Westland Milk heading? WEST COAST MP

Damien O’Connor says though he is unable to say exactly what’s gone wrong with Westland Milk Products (WMP), he believes the two pronged approach to development and growth could well be a factor. Recently the new chief executive of WMP, Toni Brendish, said she is further reviewing staff roles in the holding company and its subsidiaries. She seeks to restore the company to an industry competitive position and

warns some staff redundancies are likely. The review is scheduled to be completed by the end of this month.

He hopes that while Brendish does her review the WMP board is looking at its overall strategy. He says they can’t bury their

“I hope the losses are not on the West Coast where we need every job.” – Damien O’Connor O’Connor says the two pronged approach of WMP expanding into Canterbury and building a plant to produce high value products was expensive and untimely from an international market perspective.

heads in the sand and not answer the tough questions that are going to come from shareholders and other people in the dairy industry. The present chairman, Matt O’Regan, is due to stand down in March and

a new chairman will be elected; the other week a recently elected new director, Sven Koops, resigned for ‘personal reasons’. O’Connor says the company’s people are its greatest asset and he feels many corporates and co-ops in New Zealand don’t value their people. “I hope the losses are not on the West Coast where we need every job. The division of the company between Westland and Canterbury in my view was always the

West Coast MP Damien O’Connor.

Rain wreaks havoc on the Coast PETER BURKE peterb@ruralnews.co.nz

DAIRY FARMERS on the West Coast are having one of their wettest and worst summers for 20 years, says the chairman of Westland Milk Products, Matt O’Regan. He told Dairy News that most of the Coast from Karamea in the north to Fox Glacier in the south have had a whole season of dull wet days. O’Regan says only some of the inland areas have escaped the big wet. Coupled with the rain and cloud, the temperatures have been cooler, affecting pasture growth. “The wet weather has affected pasture quantity and quality and a lot of farmers are having to buy in feed or put their cows on

Matt O’Regan on his West Coast farm.

once-a-day milking. It’s probably one of our worst seasons for the length of the time it has gone on. It’s now getting close to autumn and quite honestly much of the Coast has not seen any summer,” he says. O’Regan says because of the

lack of sunlight, the value of the grass being grown is poor and its metabolisable energy is low. This is affecting production which on average is down by 5-6%. But on some farms badly affected by the wet summer, production will be much lower, he says.

“Some farmers are seriously affected, coming out of two years of the low or just breakeven payout and although the payout has lifted a bit they are unable to produce the milk solids they would normally produce. So it is very tough for some farmers.” O’Regan says while some farmers on the West Coast will feed supplements such as PKE in summer, this wet summer is forcing them to do this just to keep their herds milking. They are also buying in baleage and things don’t look good going into winter. “Some farmers have struggled to get quality and quantity feed grown onfarm, but again it’s a long time until we get to winter and the Coast can correct itself quickly.”

wrong one and it presents challenges operationally and culturally. I hope the company can work through that because it’s a great company and we desperately need it to succeed on the West Coast. I offer my support for them in any way I can,” he says. O’Connor also observes that the season has been bad for dairy farmers and he hopes

the company can quickly get back on track. He has always supported WMP and says the Coast made the right decision to set up its own company and not go with Fonterra. He hopes the slump in milk production does not lead to procurement wars in the dairy industry, such as occurred in the meat industry, to get milk into plants not operating at capacity.

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DAIRY NEWS FEBRUARY 14, 2017

6 // NEWS

Stay positive, keep farming PAM TIPA pamelat@ruralnews.co.nz

FARMERS NEED to stay positive; dealing with drought is part of the challenge of farming, particularly in Northland, says Okaihau dairy farmer Roger Hutchings. “It will rain, it’s just a matter of when,” he says. The positive attitude is despite Hutchings’ estimate the drought will cost his farm about $200,000 in lost production this year – and that’s counting on rain in February and March. Minister for Primary Industries Nathan Guy made the drought declaration for Northland on February 3 at Hutchings’ farm, a Fonterra supplier. “We haven’t had any significant rain since the end of October. We have had little bits but not a lot,” Hutchings told Dairy News. Persistent wind has been equally as damaging as lack of rain. About January 10 his farm made the decision to move all the herds to oncea-day milking. They peak milk 700 cows but also decided to do some early culling and drying off to reduce the feed requirements, so they dropped the cows to 620. The main reason was to conserve the bodyweight, Hutchings says. They have fed maize silage and palm kernel. They have had chicory crops to help them through the dryer summers but

they are “not flash” because they too have not had much moisture. “Probably two-thirds of their diet is other than pasture,” he says. “But the cows have maintained body weight and we haven’t dropped significantly in production although we are lower than we would have been last year. “We will probably drop about 25,000kgMS on last year. “There are extra feed costs because we have brought in some baleage and palm kernel and the like. “So the cost of the drought would be about the $200,000 mark. That is a significant cost.” That estimated level of lost production would be counting on some autumn rain. He has little kikuyu on his farm. “Even kikuyu around the north is not really coping because it is too dry. Kikuyu likes moisture and temperature to perform to its best but there hasn’t been enough moisture for even that to fire up.” The improved milk price does make it “a little easier”. “But a lot of farmers are still tight financially because of the last two years. They planned to use this year to pay back and catch up on deferred maintenance. The two previous years we were holding our costs right back to the bare minimum and there are lots of things that probably weren’t being done that should have been. “With the higher payout it was time

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to do those jobs. But the drought has put a hold on some of that work as well.” Most of the other farmers he speaks to in Northland are in the same boat and adopting the same approach. “We’ve still got to stay positive. Now the drought has been declared there will be support in helping to source extra feed, and groups will be getting together to manage the drought and monitor farmers’ mental health. “People are under a lot of pressure in these sorts of conditions. Farmers are quite a tight knit community. We talk to each other and help each other out. Facilities will be available to do that more and keep everyone positive.” The social events such as the barbecues planned by the Rural Support Trust are helpful. “They are a boost to everyone’s morale…. And at dinners at local community halls people get out and talk to everyone. “A problem shared is a problem halved. You feel a lot better when you feel other people are going through the same sort of scenarios on their own properties. It helps everyone cope.” Farmers must try to stay positive, he says. “We will recover. Part of the challenge of farming, particularly farming in the north, is that we get adverse weather extremes – whether it is big dries or extreme wets. We try to be resilient, cope with it all and manage through them.”

Okaihau farmer Roger Hutchings (left) with Minister for Primary Industries Nathan Guy on his farm.

Northland farmers upbeat despite drought PAM TIPA pamelat@ruralnews.co.nz

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NORTHLAND DAIRY farmers are still “amazingly upbeat” despite the drought declaration, says Northland Rural Support Trust secretary/ coordinator Julie Jonkers. “But we want to be there because we know if it goes on longer it will be harder to maintain that resilience,” she says. She was pleased to see a timely drought declaration. “We discovered when we did our reviews that if you wait until you’re in a desperate situation it is a lot harder to react quickly,” she says. “It does not mean we haven’t been doing anything leading up to it; the rural sector groups and the rural support trusts have all been out there making sure things are in place. “But for the Rural Support Trust the drought declaration means we are able to act that much more quickly.” Dairy farmers are coming out of

a period of low payout. “They don’t have the reserves they would have after several good seasons or even several average seasons,” Jonkers explained. “It must be the same for farmers in other areas, like Hawkes Bay. They are all in the same boat. We try to more quickly get packages in place.” One young couple she spoke to said they were hoping to pay off debt this season, but they have had to use reserves to buy in feed. But they were still upbeat. The Rural Support Trust is starting weekly teleconferences to keep ahead of the situation so if things get worse they are front-footing it. The Northland trust has 10 drought barbecues coming up from February 20-28. There has not been a big reaction to the drought declaration. “It is not as if there is suddenly monetary help – the only thing that will help is rain – significant rain for a period of time,” she says. But with the declaration she knows that the banks, service indus-

tries and other service providers will give what assistance they can. With some contracts the drought clause can be invoked which gives them a little leeway so they can better talk with the contractor. “Those sorts of things help. Other than that there is the underlying support we hopefully can give – one-on-one support; people are bit overwhelmed.” Drought declaration “is not a magic bullet” says Jonkers. “But it allows us hopefully to do some extra work. It is the signal that we recognise it is not just a normal dry summer in Northland, that it is over and above a normal dry summer. “It is this jolly south-westerly wind which just keeps blowing – even at night-time. It is drying out so quickly.” If farmers are unclear about anything they should give the Rural Support Trust a ring “because hopefully we will have that information at our fingertips,” she says. It is also setting up a feed register with Federated Farmers.

DAIRY NEWS FEBRUARY 14, 2017

NEWS // 7

State’s close watch on dry regions PAM TIPA pamelat@ruralnews.co.nz

MINISTER FOR Primary Industries Nathan Guy says several regions -- in addition to Northland – are under close drought watch. Guy earlier this month declared Northland a medium scale drought area. Also under watch are Gisborne, Hawkes Bay, Bay of Plenty, North Waikato, Wairarapa and North Canterbury. Hawkes Bay had a regular climate briefing recently, Guy told Dairy News. Comments he heard back were “yes it was a generally dry summer but they are generally coping”. “The group agreed the region is not near the threshold to deem it a drought as they are coping and have options available to them,” he says. The Gisborne group is meeting this week. “We are keeping a close watching eye on those as areas of some concern and we are keeping a close eye on parts of Wairarapa, Bay of Plenty and obviously with North Canterbury recovering they are dealing with the aftermath of the earth-

quake as well, so we are keeping in touch with that community. “Northern Waikato is also of concern; parts of that are very dry.” Northland is very dry, he says. In 2013 the west coast of Northland was affected. This one is more prolific on the East Coast, although it is drying out in the west also now. Soil moisture deficits are about 110ml across Northland, “so that is a real concern”. The Rural Support Trust, councils, Fonterra and Beef + Lamb NZ worked with NIWA and MPI to look at the science and the forecasting. “As a group they collectively decided to seek some government support. MPI appraises that, puts a recommendation to me and that met the medium scale adverse drought event criteria,” he says. With that declaration the focus will be on the coordination role by the Rural Support Trust, rural assistance payments for farmers in hardship and taxation flexibility through IRD. “Some of the banks have come on board with a package deal to support farmers through,” he says. “The Rural Support

Trust will be watching closely the mental wellness aspect; we have put more money into that -$1.1m in the last couple of years -- to make sure

we are working constructively with the Ministry of Health, Rural Support Trusts and the Rural Health Alliance. “There is a huge

amount of work happening and farmers should realise they should pick up the phone and talk to their neighbours. Call 0800 RURAL HEALTH.

MPI is monitoring the region coloured in yellow.

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POTENTIAL FOR IRRIGATION NATHAN GUY says he has been in Northland during several droughts and he has seen a massive flood. “We are investing, have invested and in due course will invest more on a scoping study to do with irrigation potential up there,” he says. Two studies costing $240,000 have shown potential for 90,000ha in Northland to be irrigated. Areas around the mid north have potential -Kerikeri, Kaikohe, Kaipara and Ruawai. MPI, the Crown Irrigation Investment Co and the Northland Regional Council are doing a lot of work looking at water storage options for Northland. “We only collect and store about 2% of the rain that falls in this country: we don’t get the right rain falling at the right time in the right place so we need to store water over the winter and use it strategically over the summer months,” Guy says. “In some cases farmers have done their own small onfarm storage schemes. I went onto a farm in Dargaville where they have about 35ha on about a 12 day round. It was keeping his dairy farm going.”

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DAIRY NEWS FEBRUARY 14, 2017

8 // FERTILISER & LIME RESEARCH CENTRE WORKSHOP

Underground probe to help scientists mitigate leaching PETER BURKE peterb@ruralnews.co.nz

TECHNOLOGY USED

by archaeologists to find artefacts in the ground is now being trialled by New Zealand soil scientists to see if it can help mitigate nitrogen leaching on farms. Dr Carolyn Hedley, a soil scientist from Landcare Research, presented a paper on the use of ground penetrating radar (GPR) at last week’s annual Fertiliser and Lime Research workshop in Palmerston North. She and other scientists have adapted GPR

used by archaeologists to get a better and clearer picture of soil structure and where water goes. The GPR produces images, and scientists are able to take this information and data gathered from spirometers and lysimeters to get a clearer picture of the flow of water into the ground water. By using all the data, she says, they should be able to get a much clearer picture of what is happening below the ground. “The key is to get these pretty pictures which are imaging the soil and material below that and link that to management.

The sort of things we see when we see with the GPR and other imaging equipment is the depth of gravels where the ground water is. That helps us to know where the deeper soils are so you can potentially irrigate more. It will also help us to better understand and manage high yielding soils and identify the soils that are more prone to leaching,” she says Hedley says the GPR also helps see the spatial variability of soil depth and gravels. She says in the past, GPR like lysimeters has been bulky and not portable, but this has now changed and the GPR

is now mounted on a trolley, connected to GPS and simply pushed around a paddock. The end result is a series of images which scientists can analyse and interpret to give a more accurate picture of the soil structure. Hedley says the work is still in a trial stage, but if it is successful it will be another valuable tool for getting more accurate science on leaching so that better models can be produced. She says it will help inform existing models such as Overseer which is widely used to determine and regulate nitrogen leaching on farms.

Dr Carolyn Hedley, Landcare Research at the workshop.

“The key will be to relate the images that the GPR sensor gives us to the other data we are collecting by soil sampling and by modelling to try

to tie it all together so we can improve our understanding of the soils and improve our models and our prediction of where leaching is likely to

occur,” she says. Hedley’s paper was one of many at the workshop on applying new technologies to improve onfarm sustainability.

Technology allows efficient fert application MORE PRECISE aerial fertiliser modelled scenarios. Farm economist spreading has already proven to give Phil Journeaux reviewed and supplied greater environmental gains than blan- the Overseer nutrient budgets and proket topdressing, says fertiliser company ductivity weightings. “What we have found over the four Ravensdown. But new research will further econometric scenarios we analysed improve the productivity of New Zea- is that within 10 years all farms were more profitable using land’s hill country the variable rate ferfarmers, the comtiliser strategy,” says pany says. White. Presenting their “On average, the findings at the 30th farm scenarios were Annual Fertiliser $43/ha better off in Lime and Research that timeframe than Workshop recently, they would have Michael White, been using a blanket Ravensdown develspreading strategy for opment manager, a typical North and and Dr Ants Roberts, South Island farm. It chief scientific offialso proved more suscer, outlined results Michael White, Ravensdown. tainable, when tested from 40 commercial fertiliser applications that have used the against volatile returns for farm profitability over the ten years.” variable rate technology. The variable rate spreading technol“On the 40 farms an average of 9% of the land has either been environmen- ogy is an ancillary programme funded by tally sensitive or non-productive, which Ravensdown in support of its joint Priis well above what we expected. Being mary Growth Partnership programme able to avoid such land during fertiliser with the Ministry for Primary Industries application brings environmental gains -- called Pioneering to Precision, which is aiming to develop aerial soil testing and may save money,” says White. “In fert spreading precision, pilots technology using hyperspectral imagery. Now in year four of its seven-year and aerial spreading operators have for years done the best they can with the programme, Ravensdown is identifying considerable productivity potential technology they had. “Only now are technology develop- between differing land management ments emerging that allow hill coun- units on hill country farms. “It’s important that our research is try farmers to begin to pick and choose where to apply, or not apply, their fertil- going to be economically viable for it iser. If of sufficient size, a stream, some to be adopted by farmers. What this scrub or a sacred site can be mapped research proves is that farmers can have and avoided more easily, cost effectively confidence in the technology right now, in its early stages, knowing all the while and safely,” says White. Using AgResearch’s PKS lime that further technological advanceeconometric model, they then comments in GPS guidance and automapared a variable rate application to a tion will allow greater efficiencies and blanket fertiliser strategy on four farm- effectiveness down the line.”

DAIRY NEWS FEBRUARY 14, 2017

NEWS // 9

Warning on complacency PETER BURKE peterb@ruralnews.co.nz

THE HEAD of global agri for KPMG, Ian Proudfoot says he has concerns that the apparent fast recovery in dairy prices is leading to complacency which is a problem. He has found in recent

year a strong correlation between better prices and complacency and he says farmers need to keep watch on their cost of production or be caught out financially. Proudfoot says because of the fast recovery, some farmers who had been planning changes suddenly put these on

hold. And he says the dairy industry faces new challenges caused by the breakdown of the relationship between the US and Mexico and further uncertainty caused by Donald Trump’s election. “Mexico was the

largest buyer of American skim milk but they now appear to have reduced their buying which will mean the US will have to find different markets for some of that product and SE Asia is one of the potential markets. “This means they would compete with New

Zealand products destined for that market so we could see changes here in NZ quickly over the next couple of GDT auctions,” he says. Proudfoot says NZ doesn’t have a special trading relationship with Mexico, but was relying on the TPP to deliver that

which he doesn’t believe will happen. He says NZ now needs to urgently work on building special trading relationships with Mexico and Japan. Meanwhile Proudfoot says overall American milk production is up and there are no signs of a reduction in Europe.

Meanwhile he’s not sure NZ milk production will be down as much as predicted a year ago. Though some farmers are suffering from drought and wet, many had a better November and December and this may reduce the drop in production.

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due to difficult production conditions, coupled with increasingly dry ground conditions in the north and east of the country, farmers looking to offset the summer milk production drop need to act now with strategic pasture management and high-energy supplements. Paul Sharp, SealesWinslow animal nutrition specialist, says seasonal milk production decline is due to a variety of factors which include physiological changes in the cow, reduced pasture growth rates and seasonal decline in pasture quality. “If we look at the numbers associated with each of these factors, we see that a 4-6% production decline per month results from the seasonal physiological changes in the cow,” says Sharp. “Yet the average production decline on New Zealand dairy farms is close to 15% per month. The difference between these figures – 9-11% – comes from the impact of the feed quality and quantity.” Right now with reduced pasture growth rates, the limiting animal factor is sufficient drymatter availability and the composition of this pasture for maintaining milk production and cow condition. “The more we can offset the impact of falling pasture quality and quantity, the more milk we’ll be able to produce through summer,” says Sharp. “Ideally, we only want to see a 5% drop in production each month.” He notes that to achieve this it is paramount to manage grazing to optimise pasture quality. “Adjust the rotation so that you’re grazing pastures when the plant is still young. That way there will be less seedhead and stem – and therefore less fibre in the feed. For those areas where there is still moisture, pasture growth can be promoted by the use of regular, light dressings of nitrogen fertiliser and just 15-18kg N/ha should be enough to encourage high quality leaf growth. “At the same time, you can increase the energy density of the animal’s diet by using high-energy supplements,” says Sharp. “These can just be used strategically to fill that energy gap and keep milk production levels up. SealesWinslow’s Kick Starch or Home Run pelleted feed is ideal for this use.”

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DAIRY NEWS FEBRUARY 14, 2017

10 // NEWS

Co-ops dominate agri food sector – report A REPORT into New Zealand’s cooperative sector shows the top 30 members are very strong in agri-foods. Led by Fonterra, they account for 65.2% of rev-

Craig Presland

enue, 67.6% of assets, and 82.8% of employment in the cooperative economy. The report is the joint work of Cooperative Business NZ and researchers at Massey University and

the University of Auckland. The report finds the cooperative sector contributes revenues of at least $42.3 billion per annum and NZ’s top 30

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co-ops and mutuals have 1.4 million members, employ 48,500 people and have a revenue-to-GDP ratio of 17.5%. Lead researcher Dr Elena Garnevska of Massey University says the results show a sector of significant economic and social importance and help us better understand and promote the cooperative business model to policymakers, consultants and others. “With 1.4 million memberships the results show how much the cooperative economy is woven into the everyday lives of NZers.” Cooperative Business NZ chief executive Craig Presland says the agrifood sector continues to dominate NZ’s exports and remains the backbone of the NZ economy with profits being retained here. “Within this sector the cooperative business model, with full ownership and control being

provided to members on the basis of supply and/ or patronage each year, has proven successful going back to NZ’s first dairy co-op set up in 1871. These co-ops have demonstrated strong endurance and sustainability.” Of CBNZ’s 60 full members, 40 are now 25 years or older, and of the remaining 20 half are 10 years old. Presland says four of its members -- SBS Bank, Fonterra, Tatua Dairy Co and Farmers Mutual Group – are over 100 years old. Presland says the report reflects favourably on the NZ agri-food sector as sustainable economically, socially and environmentally over a long time. “It shows cooperative organisations have been able to thrive and flourish internationally and endure and survive through difficult times. @dairy_news facebook.com/dairynews

Tough contest for industry scholars DAIRYNZ HAS awarded 55 scholarships to Lincoln,

Massey and Waikato university students, to support young talent seeking to enter the dairy industry. The money – up to $6325 per year – helps fund university study until course completion, providing grades remain acceptable. It is awarded to students in degree courses in agriculture or related fields, with a particular interest in the dairy industry. The students are mentored and supported while they study, often continuing when they get jobs on farms or in other sectors of the dairy industry. Susan Stokes, DairyNZ industry education facilitator, says the quality of applications this year was exceptionally high and bodes well for future talent coming into the dairy industry. “This support is for… the industry’s future research scientists, farm advisors, farm managers, farm owners and rural professionals,” says Stokes. Twenty-five students at Lincoln University, 27 at Massey and three at Waikato will receive a DairyNZ scholarship, funded by the levy money dairy farmers pay to DairyNZ. “We received applications from 131 students from 80 schools, in addition to last year’s scholars continuing their studies. The high standard made our selection process challenging; some very good students missed out this time,” says Stokes. The closing date for 2018 scholarship applications is December 7, 2017. For information on the scholarships, application process and criteria to qualify, see www.dairynz.co.nz/scholarships.

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DAIRY NEWS FEBRUARY 14, 2017

12 // NEWS

Fonterra lifts Aussie milk price FONTERRA SAYS

René Dedoncker

improving global dairy prices and a revamp of its operations have enabled a rise in the farmgate milk price to Australian suppliers.

Fonterra Australia last month increased its Australian average farmgate milk price to A$5.20/ kgMS, bringing it in line with the forecast closing price for the 2016-17

season. Individual suppliers’ milk prices will vary between Fonterra’s supply regions depending on the individual farm’s milk profile, regional produc-

A good start goes a long way.

tion factors, milk quality and farm management systems. Fonterra Australia managing director René Dedoncker says this revised price reflects improvement in the global commodity markets and progress on key initiatives for the Australian business. “Production has fallen in the major exporting regions, particularly Europe and New Zealand, and we’ve seen a significant decline in Australian milk supply. “This has helped to rebalance global supply, while demand has remained firm. As a result there has been a steady improvement in global dairy commodity prices and this is reflected in our farmgate price. “Our strategy continues to progress, helping us to rebalance our product mix into products generating those higher returns, which we’re able to deliver back to farmers at the farmgate,” says Dedoncker.

Over the past six months Fonterra has achieved a number of key initiatives: ■■ Strong growth in the ingredients business, with almost 1000 containers of cheese, whey and nutritionals exported to key global customers in December and January ■■ The construction of the multi-million dollar Stanhope cheese plant and expansion of the Cobden coolroom are also going well: Stanhope is on track for completion in mid2017, and the Cobden coolroom is ready for growth in Western Star from April ■■ The Beingmate joint venture at Darnum is under way, and the first product made under the JV is now in production, destined for China. “The progress we’ve made on our strategy, coupled with improvements in the global dairy market, has enabled us to raise payments to our farmers,” he says.

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is seeking market share in the $10 billion sports nutrition category for a new protein ingredient said to have 10% more protein than other standard whey protein products. Designed for use in sports drinks and energy bars, the ingredient is claimed faster acting, and lower in fat, sugar and carbohydrates than other similar protein products. Fonterra lead technologist Neil Fraser says some protein ingredients have been made from cheese whey. But the co-op claims a world-first: lactic casein whey is used to make the protein ingredient. “As people’s... awareness of the benefits of protein goes more mainstream, sports nutrition is no longer just for exercise fanatics,” says Fraser. “Protein... is needed for growth and maintenance of all cells in the body, especially muscles. Proteins are believed to support athletic performance, but are also important for healthy ageing.” NZMP says it offers the largest range of dairy protein ingredients in the industry, marketed under the NZMP SureProtein brand. “The protein has been developed and launched in a year by Fonterra’s R&D centre and operations teams... getting more value out of milk.” The US leads the way in the protein boom in sports nutrition and orders are in from a big producer of sports nutrition drinks in the US. The Japanese are also keen to get in on the action.

DAIRY NEWS FEBRUARY 14, 2017

WORLD NEWS // 13

Oz dairy consolidation SUDESH KISSUN sudeshk@ruralnews.co.nz

MORE SIGNS of consol-

idation in the Australian dairy sector. Canadian dairy giant Saputo is poised to take 100% control of Victoria processor Warrnambool Cheese & Butter, Australia’s fourth-largest dairy producer. Warrnambool’s board is recommending an offmarket A$8.85/share cash offer from Saputo in the absence of a better one. Saputo now owns 88% of Warrnambool; Japanese-owned Lion Dairy & Drinks owns 10.2%. Lion bought its stake in Warrnambool in 2014 after Saputo beat Bega Cheese and Murray Goulburn to the control of this company, whose brands include Coon, Cracker Barrel and Great Ocean Road.

Bega Cheese last month brought most of the Australian and New Zealand grocery products under the control of US-based Mondelez International, making the Vegemite brand fully Australian owned for the first time in 80 years. Bega paid A$460m, and is entitled also to make Kraft cheese and spread under licence as part of the deal. Australia’s dairy industry remains fractured, with several international dairy processors in the mx. Fonterra is the second biggest dairy processor in Australia, Canada’s

Saputo has locked in WCB and Japan’s Kirin bought National Foods, merging it with Lions Dairy & Drinks. Parmalat Australia is part of the Italian company Parmalat, majority owned by French family owned company Lactalis since 2011. Murray Goulburn, the biggest dairy processor, is a co-op owned by Australian dairy farmers. Warrnambool’s independent board committee, made up of non-Saupto directors, is recommending the offer. It says the offer represents a substantial pre-

mium to recent trading prices, including: o a 24.8% premium over the closing price of $7.09 per WCB share on January 27, 2017, the last trading day before the offer was announced. It says there appears to be very little prospect of a superior proposal from another bidder given the composition of the WCB share register. The offer will allow WCB shareholders to sell their holding for cash at a substantial premium to recent trading prices, free of brokerage; and given the lack of liquidity in WCB shares, it may remain difficult for WCB shareholders to sell their shares other than by accepting the offer. Lion sold its everyday cheese business to Saputo in 2015 for A$138m, which effectively ended its commercial relationship with Warrnambool.

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says. “I’m not saying everyone is in a great position, but the majority I’m dealing with are saying it’s not quite as tough as we thought it would be and that’s been because of the planning through Taking Stock. “What’s interesting is the transition of farmers before October to after October. I’ve dealt with just as many after October and they are much more strategic in their thinking and looking at where their business is heading. “It’s much more of a big picture attitude now and this planning approach that DA has rolled out has taught farmers something more for next time. It has placed another level of decisionmaking in the business.” Northern Victorian farm consultant Tom Farran, from Farmanco, says initially there was a lot of stress and panic because farmers assumed their incomes would be low. “But then many started to realise the cost of production was coming down and by doing Taking Stock they had a much better understanding of how the business had been performing and what areas they could look to address,” he says.

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DAIRY NEWS FEBRUARY 14, 2017

14 // AGRIBUSINESS

Eager for NZ farm development help PAM TIPA pamelat@ruralnews.co.nz

OPPORTUNITY FOR

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products and services, particularly dairy, is presenting in a number of developing markets, says NZ Trade and Enterprise customer manager Lisa

Marcroft. It is often driven by their governments. “They are looking to increase their own self sufficiency and in some

places there are growing middle classes,” Waikatobased Marcroft told Dairy News. “Led by governments, people are seeing more

could be done to increase the productivity of their farms. “They might have a lot of farms. But they are not producing much milk

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NZTE’s Lisa Marcroft.

or there’s not much milk going into the formal supply channels.” Corporates too are recognising opportunities to establish farms in places where historically large commercial farms have not existed. “Many places are quite fertile; there is water available in places like Tanzania and Kenya,” says Marcroft. “There is no reason they can’t have sustainable, profitable, productive farms there with some outside help from NZ.” Agritech is products, technologies and services used onfarm to help the farmers become more productive, sustainable and profitable. Most opportunities for NZ companies are in the livestock sector. Central and South America, parts of South East Asia, parts of the Middle East, Turkey and East Africa are markets where some agritech companies which Marcroft works with are looking at projects and opportunities. “The Turkish government has identified farming, food and agriculture as one of its key priority sectors,” she explains. “In these markets you see a small number of very large farms and then you have lots of small farms.” Opportunity exists in both types of farms, she says. Private agritech companies trying to enter emerging markets tend to target those larger corporate farms. “In Turkey there is a large farm of 330,000ha with thousands of dairy cattle,” Marcroft says. “They have spoken to one of my colleagues in Turkey about increasing the productivity of their dairy cattle. They have asked if there is anyone in NZ who can help them do it. “I have a company that will be visiting Turkey to meet with this Turkish entity – a bit like our Landcorp – next month to have a look at that opportunity.” On the flip side in East Africa she helps companies

working with organisations who have funding from the Gates Foundation. “They are looking to support smaller farmers and help smaller farmers produce more milk and support better lifestyles for those farming families – more milk but also better quality milk,” she says. “This opportunity is working through a philanthropic organisation which is supporting these million dollar projects lasting several years. “There is the opportunity to sell products into these markets such as the stainless steel for milking, electric fencing, scales and feedout wagons.” But opportunity also exists for knowhow and services which could include onfarm audits -- the type of work AsureQuality does. “The quality of the milk in NZ is exceptional,” says Marcroft. “We have good systems to support the production of that high quality milk, whereas in a lot of these emerging markets the quality of their milk isn’t anywhere near the standard in NZ. “So there is the opportunity for us to do things like audits on farms to understand what is going on and give recommendations on how that quality might be improved.” NZ enterprises can also help train farmers. “Fonterra does a lot in Sri Lanka, spending time trying to understand how their farming systems work and putting together training to help overcome the barriers they have with their climates, labour or animal husbandry techniques.” Finding people to work on our NZ farms can be a challenge at times, she says. “We can bring in people from some of these markets where they can learn how to do better and then take that knowledge back to their homes. While here they can do courses through Taratahi, Massey or Lincoln.”

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DAIRY NEWS FEBRUARY 14, 2017

16 // OPINION RUMINATING

EDITORIAL

How will Westland Milk rise again?

MILKING IT... Rescuers rescued

IT’S NOT every day that a helicopter lands in a paddock near you. A family of south Auckland farmers came to the rescue of an Auckland Westpac Rescue helicopter crew when bad weather stranded it in their paddock. The Wood family ventured out to the chopper and invited the five crew members home for tea and cheese toasties. Farmer Tim Wood, who runs his elderly parents’ dairy runoff in Ararimu, says he thought the helicopter had broken down when it landed on the property on Friday morning. But the crew explained that blustery winds made flying unsafe so they aborted their mission to a nearby car crash.

Luxurious Black Cow

GET READY to taste Black Cow, a brand of vodka made in Dorset, England, by dairy farmer and distiller Jason Barber. His first attempts to make vodka from potatoes and apples proved unsuccessful, but instead of giving up he decided to use whey left over from his cows milk, usually treated as waste and fed to pigs. He used a special strain of yeast to convert the lactose into milk ‘beer’ and then distilled the liquid into vodka. Says Barber, “it tasted so good we decided to go into production.” It takes 20L of milk to produce enough whey to make 1L of vodka. Cofounder Paul Archard says they’re turning whey “into a luxury product”.

Holsteins cruise Skittles for away cows THE CATTLE carrier Awassi Express is on its way to China with 4500 Holstein cattle. MPI officials issued an animal welfare export certificate to allow shipping from Napier to China. The Awassi Express is owned by Saudi businessman Hmood Alali Al-Khalaf, who has been involved in several international animal welfare debacles. At least 5000 sheep died aboard another of his livestock ships in 2003 and in late 2014 hundreds of sheep died at his farm in the Saudi desert after the New Zealand government flew them there. MPI officials say they issued the certificate after “an extensive assessment to ensure animal welfare requirements were met”.

WHEN A ute carrying a large box of red candy Skittles spilled them on a Wisconsin, US, road last month, it brought to light a bigger issue—the candy’s destination. On January 17, the Dodge County sheriff’s office said on Facebook its officers found hundreds of thousands of Skittles on a county highway. Mars, the maker’s parent company, confirmed the Skittles would not have been packaged and sold because they were missing the classic letter ‘S’ marking each piece of candy. Instead, the sheriff’s office said the candy was going to be added to feed for cattle, a decade-long practice. The Skittles on the truck in Wisconsin ended up on the ground because rain soaked the box they were in, causing it to give way.

THE BIRTH of Westland Milk Products was an appealing story for all New Zealanders, not just West Coasters. It spurned the overtures of Fonterra and did it the West Coast way. WMP was built by fiercely independent, resilient, hard working Coasters who live in isolated communities far away from the ‘suits’ of Wellington and Auckland. The Coast has its own tough culture where jobs have always been scarce, the climate challenging and a feeling that the rest of NZ doesn’t understand their unique ways. Former PM Helen Clark found them hard to deal with and called them ‘feral’. For many years WPM had been a successful dairy cooperative -- small, innovative and seemingly doing its shareholders proud. But in recent years, WMP extended its tentacles over the main divide and into Canterbury to capture some of the white gold that flowed from the advent of large irrigated dairy farms in that province. At the same it adopted a seemingly logical and commendable strategy to move away from the production of basic milk powders into higher value-add products. Unfortunately the growth spurt of WMP coincided with the slump in the global dairy market and it seems the company is in financial strife and needs to quickly restructure its operations. There is a lot of behind-the-scenes finger pointing as to why this happened. The previous chief executive and chief financial officer have gone and so have some board members who supported the earlier strategy. Chairman Matt O’Regan also steps down in a few weeks. It seems the expansion has not gone to plan and it’s being left to the new chief executive, Toni Brendish, to get things back on track. This will not be without financial pain to shareholders and staff and the pride of all West Coasters. While staff will likely suffer the consequences of this mess, the board of WMP needs to take a hard look at their role in this because the buck stops with them. They after all approved the strategy. Big is not always best: take the likes of Miraka and Tatua. A more conservative strategy, some hard-nosed decisions, downright honesty and the putting aside of egos and ambition by the board are required to restore the health of WMP and the confidence of West Coast dairy farmers.

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DAIRY NEWS FEBRUARY 14, 2017

OPINION // 17

Stretching the value of mozzarella ANDREW FLETCHER

FONTERRA IS set to become the largest maker of mozzarella in the southern hemisphere. The co-op’s new $240 million mozzarella plant at Clandeboye, near Timaru, is the biggest investment in foodservice product manufacturing in New Zealand’s dairy industry history, and worldwide in new dairy processing technology in the past decade. The regional economy will benefit from 100 permanent new jobs and the national economy from greater export returns. But it could have been a different story and a lost opportunity. The co-op had commercialised the core of the new mozzarella technology some time ago but didn’t fully understand how the different stages of the process contributed to the structure and performance of the final cheese, so there were quality problems with product from the original factory. There was a risk that the first plant would be the last. We realised that to take the technology to a commercial reality on a large scale required that we better understand the fundamental structure of the cheese. We needed to link the changes that occur during cheese making to the performance of the cheese on a consumer’s pizza.

That required a partner able to see the opportunity and support and pay for the science and technology the co-op needed. This support came via the scheme known as the Transforming the Dairy Value Chain (TDVC) Primary Growth Partnership. It is funding a seven-year, $170 million project led by partners including DairyNZ and Fonterra, and the Ministry for Primary Industries. This has allowed the co-op to look into the science of mozzarella and stretch the technology to its fullest extent. It has enabled us to bring people with expertise in material science and polymer physics alongside people working in dairy chemistry and food engineering. Some of that work is done in universities and research institutes in NZ and other countries, much of it by researchers at the Fonterra R&D Centre (FRDC) at Palmerston North. They have focused on the design of the commercial scale plant, combining scientific and technical insights with experience from the existing factory to develop a commercially viable process. The performance of mozzarella on a pizza is typically judged by subjective criteria – how much the cheese stretches before it breaks, and the number and colour of the blisters that form on the top when the pizza is cooked. Treating mozzarella as

That science has helped the co-op take a bigger slice of a growing global market, to the benefit of the dairy industry and national economy. The scientists, researchers and technologists at FRDC and further afield are looking beyond the current capital project to future product

enhancements. Studying the role of fat in producing the baking and sensory properties has helped us to see how we might reduce or replace fat with other dairy components to create lower-fat mozzarella. Further studies of the interactions between the structure, process and

product make up the core of a food material science approach to innovation in other food products, including UHT whipping creams. These need to be stable in liquid form along the supply chain, be easily and quickly whipped to incorporate a large volume of air, and then

remain stable as cake decorations for at least 24 hours. These and other products will be developed and created as part of the coop’s plan to grow a $5 billion food-service business by 2023. • Andrew Fletcher is Fonterra general manager of external R&D.

Andrew Fletcher

a physical material and applying tensile tests has enabled us to see how the structure changes when force is applied and what structure leads to the best stretch. Using mathematical models and smallscale equipment we have been able to predict how the design and operation of mixing equipment will impact the finished cheese. From this we have been able to determine the optimum operating conditions for a plant making many tonnes of cheese per hour, benefiting the performance of the current plant and the design of the new one. Thus, in-depth scientific investigation and practical application has proved powerful. This has been a notable success: recently an international panel of global dairy science experts, including Allen Foegeding from North Carolina State University and Erich Windhab from ETH Zurich, said the food structure design work at FRDC was “one of the top three and possibly the top programme in the world”.

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DAIRY NEWS FEBRUARY 14, 2017

18 // MANAGEMENT

Turning problem effluent into profit MARK DANIEL markd@ruralnews.co.nz

AGRICOLA ENTERPRISES at

Ohaupo, southwest of Hamilton, is an equity partnership farmed by Joe McDonald and wife Lynaire, with his parents Terry and Carole. The operation milks 560 Friesians on 140ha,

producing 250,000kgMS/ yr, and grazes 160 young stock and rising heifers at Pakatoa, Hawkes Bay. Over the last 15 years stock numbers have doubled but little thought has been given to rising volumes of effluent. The farm has had no effluent pond, instead pumping from a sump to a travelling irrigator after each milking.

Numedic tank mixer.

Joe McDonald comments “whenever it looked like rain we lived on our nerves and hoped we could deal with the problem, but hoped even more it wasn’t the local authority coming up our drive”. In 2015 they decided on a new system, took expert advice, and settled on a system centred on a 5 million litre aboveground reservoir 2.7m high and 52m diameter, reputed to be the largest of its type in New Zealand. Made from galvanised steel with a polypropylene liner, the vessel gives up to four and a half months storage, based on effluent production of 20m3/day. Though coy about the

total cost, McDonald did disclose the groundworks for the tank cost $100,000; they had to excavate to 2m depth to avert risk of subsidence under the tank. Some 12 months on, the system has been performing faultlessly and exceeding expectations. In practice, yard solids are scraped into a bunker for application by a rotary spreader, while liquids move through a sand trap to a 100m3 holding tank before automatic transfer to the main tank. Spreading on about 100ha of the total area is controlled by a Pro-Logic system via a positive displacement pump and 90mm or 110mm delivery lines to the furthest point

Farmer Joe McDonald (left) with Trevor Foley, Numedic on his farm.

1.1km away. The controller currently switches the system on for a set period of 140 minutes, in which time the readout indicates it delivers about 80m3. Integral to the system is a Numedic tank mixer with twin opposed propellers and a rotating lower unit gives 360-degree coverage, removing the need for multiple mixers that would otherwise be needed in such a big tank. The propeller angles

are said to deal with the thickest effluents to create a homogenous mix easily distributed over long distances. The lower rotating unit automatically moves to one of eight different positions every three minutes, agitating all areas of the perimeter to minimise sediment build-up – a big advantage over units with static propeller positioning. Looking back on 12 months use, was the

investment worth it? Yes: McDonald has peace of mind that the business now meets or exceeds current and likely future requirements. It also allows the family to take breaks from the farm and know the system can deal with unforeseen weather events. And more important are the nutritional benefits from the efficient use of what was once a “problem”. www.numedic.co.nz

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MANAGEMENT // 19 Balanced trace element formulation

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Phil Musson fenced off a wetland with mixed native and exotic planting.

Bouquet from Fish & Game NIGEL MALTHUS

DAIRY FARMER Phil Musson, from Springston, south of Christchurch, has won the annual Working With Nature Environmental Award from North Canterbury Fish and Game. Especially noted was his “environmental investment” in a large wintering-over feed barn now in its third season. The barn improves animal welfare and pasture health by keeping the herd off the land in the wet winter months. It also allows better control of nitrate leaching. With 380 cows, Overseer nitrogen discharge has been recorded at 10 units per hectare, versus 14/ha from only 320 cows prior to the feed barn. Fish & Game called that “a fantastic result” and a rate of discharge seen more on a dryland farm than dairy. With no direct animal discharge onto the land in winter, the collected effluent can be discharged onto the land in spring when it is best used in grass growth. Musson keeps the herd in the barn 24/7 in winter, and uses it to feed supplements year-round. It is popular with the cows -- cool and airy in summer -- and they practically queue for the rotating brush back-scratchers. A robot sweeps the feeding lanes to

pile feed in reach of the cows, and DeLaval scrapers collect the waste for pumping into the 7 million litre effluent pond. On the day Dairy News visited, Musson was feeding a supplement, largely because recent harvesting “to get on top of our seed heads” had left the grazing a little short. Overall, however, Musson says the farm is producing more of its own feed because of the lack of winter pugging. Meanwhile, he is having concrete pads installed in front of his silage bins to also trap the leachate and add it to the effluent pond. He has also fenced a spring at one corner of his land as a wetland with native and exotic plantings. Musson’s farm has the Days Road and Powells Road drains on the boundaries, both feeding the LII River which drains into Lake Ellesmere. Musson is the fourth generation of his family to farm the area, and remembers as a schoolboy when a section of the LII would regularly have about 74 trout redds (spawning beds), but in the past two seasons it has gone down to 13 and then only six. He is trying to get other farmers in the area “onside” in joint efforts to repair the streams. @dairy_news

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DAIRY NEWS FEBRUARY 14, 2017

20 // MANAGEMENT

Shred of evidence points to more milk MARK DANIEL markd@ruralnews.co.nz

CONTRACTORS AT

Roger Olson, Wisconsin

a recent meeting held in Waikato by Claas Harvest Centre got insight

into a new forage maize technique now gaining momentum in the US and Europe. Speakers included product specialist Jorg Wesselmann from Claas Germany; Roger Olsen,

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nutritionist, dairy farmer and inventor of the new Shredlage system; and Adam Clay, ruminant and technical services manager from Nutritech International Limited. Wesselmann talked about the different markets worldwide for selfpropelled harvesters (SPFH), comparing India -- which recently took delivery of its first SPFH -- to Europe where the market is mature and branching in different directions. In Germany for instance, harvesters work on traditional forage crops for part of the season then move to producing biomass to power anaerobic digesters (AD) which need very short material (down to 4mm chop length). By contrast, Roger Olson, a native of Wisconsin -- where cows are said to be thicker on the ground than in Waikato -spoke of the new Shredlage system, which has seen higher feed intakes and subsequent increases in production over a long time. Wearing his nutritionist hat, Olson saw the development of forage maize feeding from the early days when chop length needed to be about 9mm to smash kernels, and the introduction of kernel processors which allowed chop lengths nearer 20mm; he said he always felt there were benefits to be had from chopping even longer. He experienced a ‘eureka moment’ when a customer showed him a sample quite different from the norm. He had bought a wornout chopper with blunt blades and a well-worn shear-bar, and was using brute force, i.e. high power, to force the crop through the machine. Instead of chopping the crop to precise lengths, the sample was largely crushed and the stems were split longitudinally to produce flat thin pieces. A new processor was designed -- starting with wooden mock-ups and launched in 2010 -- which

effectively crushed the kernels and split the stem pieces longitudinally while squeezing them flat, delivering more physically effective fibre at chop lengths of 26-30mm. The system uses two Loren Cut rollers with 145 and 110 teeth respectively, which run at a 50% speed differential. This raised daily output in the field because of the extended chop length, and more importantly increased the effective fibre in the sample. This was achieved by increasing the surface area of the maize pieces, allowing greater microbial activity in the gut and raising yields by up to 5L/ day, and allowing the cow to produce at peak for longer. From a rationing point of view, Shredlage is said to help save costs by removing the need to add large amounts fibrous material like straw, hay or alfalfa to help digestibility, and focus on the maize which is the lowest cost ingredient. As with any system, the harvest must be done at the optimum time, which Olson suggests is when a target of 32-34% dry matter is achieved and a milk line is seen halfway up the kernel from its base. Chop length should be about 26-30mm and the processor gap set to about 1.75mm. Some in the audience expressed concern that longer chop lengths would result in difficulty compacting the stack, but it was suggested that because the crop pieces were soft, flat strings there would be no problem. Tests had shown that consolidation was at least on par with traditional chop lengths where density was typically 18.5 lbs per cubic foot, though if DM increased there might be a need to chop shorter and tighten up the processor gap. Olson said US farmers’ take-up of the system, now owned by Claas, represented 50% of all custom harvester purchases. www.claasharvestcentre.co.nz

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DAIRY NEWS FEBRUARY 14, 2017

22 // ANIMAL HEALTH

Trace minerals: how much is enough? SUE MACKIE

EVALUATION OF

what is an adequate level of trace minerals is generally based on population in sample analysis of large numbers of animals not dead or dying, and the resultant levels are deemed adequate. In other words, the lower levels recorded on your laboratory tests mean you will not die of deficiency diseases. In cattle testing, the lower limits are the minimum needed to avoid severe disease or death by deficiency. Today most farmers have moved beyond this and are looking for more – better production and/or

better growth rates. Not surprisingly, better inputs of relevant nutrients are required to achieve these outcomes. In more recent times, better understanding of the mechanisms of best immune function and the relevance of different forms of each mineral is again changing what is regarded as optimum blood or tissue levels for specific nutrients, especially trace elements. Consequently, there is no one right answer for any individual farm at any given time re the ‘correct’ level. In fact, for many of the current recommendations for upper levels of certain trace minerals, there is no scientific basis for the numbers given, as

we live in a changing world. Eliminating disease due to inadequate inputs was easy; moving on from there depends on expectations of performance, and health. No trace element is a magic bullet; they are part of a complete diet. Supplementing extra product ‘A’ will not produce additional output if something else (e.g. drymatter or energy intake) is limiting, i.e. being used to the max already. No animal can make meat or milk from air; it is the total that is important. Similarly, the form of the mineral, e.g. sulphate or proteinate, will greatly influence outcome and safety. Many of the upper limits

of safe supplementation were based on the use of mineral forms of elements; much more effective and safer forms are now available which provides greater opportunity to enhance outcomes. Efficiency of use will differ for different forms and different farms. The most effective method of administration is the one that is most practical and is going to be done properly on any particular farm. However, the nearer we can mimic animal requirements and use, i.e. constant small amounts all the time (at a minimum, daily) without compromising some other nutrient

Does your herd have adequate levels of trace minerals?

(e.g. unpalatable water, complexing minerals etc.) the more effective the use and the best outcomes. Increasingly animal welfare and comfort should also be a concern; constant injections will be difficult to justify to consumers when other methods are available. For animals not able to receive daily supplements, especially those not handled daily, intra ruminal boluses

are an excellent option. Young animals on grazing properties are obvious candidates, especially if the initial treatment can be given before they leave the home farm. While treatment has benefit for growth and health, part of the response to supplementing replacements is to optimise immune function not only while away but potentially right through their first calving.

Breeding bulls are often the forgotten group that also have requirements for semen quality, not just for health and growth. While treating mature bulls is fraught with risk, weaners and yearlings would benefit from better attention to nutritional detail, and intra ruminal boluses are ideal. • Sue Mackie is principal dairy consultant at Dairy Production Systems Ltd.

UK vets worry over Brexit BRITISH VETS are nervous about

changes that may arise from Brexit, says British Veterinary Association (BVA) president Gudrun Ravetz. Speaking at BVA’s annual London dinner in Westminster last week, she said many members are concerned about the threat Brexit poses for UK animal health and welfare. “Yet we can also see the opportunities Brexit presents, and BVA is determined to work with the Government to seize these opportunities, where they exist, to improve standards. “The veterinary family – which is my focus as BVA president – is part of the international scientific community, and we are a diverse profession with far-reaching influence and impact in many areas of political and public life .... A healthy veterinary workforce is vital for UK animal and human health.” The residence or working rights of UK-based EU vets will be a ‘top five’ priority for the profession in forthcoming Brexit negotiations. The UK veterinary profession relies heavily on EU graduates. Ravetz says many have felt the impact of the EU referendum result

BVA president Gudrun Ravetz.

since day one. “In the meat hygiene sector alone, some estimates suggest 95% of veterinary surgeons graduated overseas. “That’s why our first action after June 23 was to call on UK governments to protect the status of EU veterinary surgeons and veterinary nurses now living

and working in the UK. It was encouraging to see some of these key priorities… make it into the Prime Minister’s list of negotiating priorities. “But we have said from the outset that our members need certainty and reassurance, so we urge the Government to make that firm commitment now.”

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DAIRY NEWS FEBRUARY 14, 2017

FENCING & FARM BUILDINGS // 23

Fencing enhances freshwater in many ways FENCING WATERWAYS protects

freshwater from nutrients, effluent and sediment by excluding stock and creating a buffer between water and the land. Fencing will help to maintain and improve water quality and create a habitat for birds and freshwater species. Fencing waterways is a priority under the Sustainable Dairying Water Accord, as follows: ■■ All stock must, by May 2017, be excluded from permanently flowing rivers, streams, drains and springs wider than 1m and deeper than 300mm ■■ All lakes must have all stock permanently excluded by May 2017 ■■ Any significant wetlands, as identified in a regional plan or policy statement, must also have all stock permanently excluded by May 2017. Planning your fencing Waterway fences must be far enough back to allow for movement/ flooding of the waterway. Start by mapping your waterways and create a fencing plan. Consider the overall layout of your farm; along with protecting waterways, new fencing can improve grazing management and stock control. Plan out fence

lines and crossing points. Determining where your fence should go The area between the fence and waterway will slow runoff to filter out bacteria, phosphorus and sediment before it can enter the waterway. Choose your fence setback depending on how you are going to manage the area. There are four main ways to manage your riparian areas as outlined below. All have the benefit of excluding stock and reducing phosphorous and sediment entering waterways. Additional benefits and limitations for each option are listed below to help you decide on the fence setback that will best suit your needs. 1. Grass filter strip between fence and waterway

Additional benefits ■■ Low cost ■■ Small loss of grazing land ■■ Limitations ■■ Weed control required ■■ No shading of stream ■■ Minimal habitat for bird and aquatic life ■■ Minimal bank stabilisation without deeper rooted vegetation 2. Low planting between fence and waterway

Additional benefits ■■ Stream bank stability

■■

■■ ■■ ■■

Small loss of grazing land Can make use of sprays targeted to broadleaf species Helps control weed growth Shade and cover for fish and insect life Limitations Weed control required Minimal habitat for birdlife

WORKING IN FLOOD-PRONE AREAS ■■

Use fewer upright posts and less wire; this way less debris will catch on the fence. Do not use netting as it will trap debris.

■■

Put wires on the downstream back side of posts so the staples can pop and the wire drop rather than pulling out the posts and strainers.

■■

Use non-barbed staples so wires can pop off

more easily. ■■

Erect fences parallel with the way the stream floods so the fence does not collect debris.

■■

Set fences further back where active erosion is occurring

■■

Construct separate ‘blow-out’ sections across flood channels.

3. Full planting between fence and waterway

Additional benefits ■■ Reduced drain maintenance ■■ Attractive asset for your farm ■■ Provides shade and keeps water cool ■■ Increased habitat for birds ■■ Limitations ■■ Higher cost ■■ Larger loss of grazing land ■■ Needs weed control for at least two to three years ■■ May require animal pest control

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4. Extend fenced area to include seeps, wetlands, swamps and springs

Additional benefits ■■ Reduces stock losses ■■ Provide habitat for bird life ■■ Limitations ■■ May result in loss of grazing land ■■ Needs stringent weed control ■■ Higher cost if planting required

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Build an electric fence that can be dropped or removed to allow access. e.g. use pinlock insulators so the wires can easily be lowered for machinery to cross.

■■

Position the fence so that a long-reach digger can reach over the top.

■■

For wide waterways, place a fence far enough back to allow a digger to work between the fence and the bank. This still allows for a wide grassy margin and you can plant low growing plants on the waterway margin if you wish.

■■

Do not cut off gateways that give diggers access to neighbouring paddocks.

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DAIRY NEWS FEBRUARY 14, 2017

24 // MACHINERY & PRODUCTS

Big tick for bigger drill MARK DANIEL markd@ruralnews.co.nz

WAIRARAPA DAIRY farmer Bill Patrick’s new Duncan Renovator AS5300 drill allows him to cover more ground faster and deal comfortably with trashy conditions on the family’s 2000-cow dairy farm in Wairarapa, east of Masterton. They bought the machine last year to replace a Duncan Renovator MK3 drill, they had run for seven years. The key reason to upgrade was to get more work done at the same till and row spacing. Having drilled 700ha in the past year, Patrick and his brother have planted cereals, oats and barley directdrilled and into cultivated ground, and

have drilled summer and winter brassicas and grass pasture mixes, also in direct-drilled and cultivated ground. Results have been good in both ground types; the only issue was some poor germination in drier country, blamed on the exceptionally dry autumn and no reflection on the drill. The Duncan Renovator AS5300 is a 5.3m tine drill that folds down to 3.1m for transport and should prove to be ideal for contractors and large farming operations. It is designed for work in directdrilled or worked ground. A 2000L capacity split hopper for both seed and fertiliser allows the optimum set-up for changing situations. Patrick says several aspects of the drill make it more productive and user friendly, not least its greater clearance

Bill Patrick, Wairarapa, with his new Duncan Renovator drill.

than the Mk3, which allows it to deal with trash more easily. Output is also helped by a simple calibration set-up and easy change between seed types.

The business has retained the older machine for the very steep areas. Despite its 5m width the machine follows the ground contours well, Patrick says. He likes the strength and

manufactured quality of the AS5300, including its 25mm coil tines and Duncan T boot with tungsten tile on the leading edges. www.duncanag.co.nz.

Bring home this bling MARK DANIEL markd@ruralnews.co.nz

THIS NEW year might

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just be the time to buy a new vehicle. That’s because Toyota has announced a limited TRD (Toyota Racing Development) Special Edition Hilux which went

on sale on January 1. Based on the company’s Hilux SR5 double cab diesel, the 2017 Hilux TRD will be a limited run of 300 examples in 2WD or 4WD, manual or auto transmission and a pick of seven different colours. Creating a bold visual difference from the base

turn a few heads at the beach. And at the rear of this classy ute is a remote controlled, motorised ABS plastic, hard lid system that will get people talking. Underneath is an anti-slip deck liner, LED interior lighting and antijamming technology. www.toyota.co.nz

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EUROPEAN FARM machinery maker Amazone has added the Vogel & Noot brand to its green-andorange lineup after buying the well-known Austrian company. Cayros mounted reversible ploughs are available in five series. The M series comprises three or four furrow ploughs for tractors up to 120hp. Standard features include a 120 x 100 x 8mm beam, a 780mm beam clearance and interbody clearances of 95 or 1020mm. This layout uses a 80mm diameter turnover shaft and stepless furrow width adjustment. The larger XM, XMS and XS series, suitable for tractors of 140, 200 and 260hp, respectively, has even stronger components and construction. The top-of-the-range Cayros XS Pro series comprises three models with four or six furrows said to be suitable for 380hp tractors, with a 200 x 150 x 10mm beam, 900mm beam clearance and an interbody clearance of up to 1050mm; it uses a 120mm diameter turnover shaft, www.claasharvestcentre.co.nz

DAIRY NEWS FEBRUARY 14, 2017

MACHINERY & PRODUCTS // 25

Baler upgrade MARK DANIEL markd@ruralnews.co.nz

NEW HOLLAND Agriculture has upgraded its Roll-Belt variable chamber balers for better performance in silage; its new IntelliBale system is said to raise performance and efficiency. NH has about 235,000 Roll-Belt units in use worldwide; its ability to work in all types of crops explains its success. A new dual-follower roll sledge assembly replaces the single-looped follower roll with the scraper of the previous models. The smooth front roll and looped rear roll rotate together, preventing crop accumulating on top of the scraper, and behind the belts in the follower roll area from wrapping on the rolls, which can lead to

belt slippage or stalling in difficult silage conditions. This eliminates the need to stop and clean crop from the roll and scraper, increasing the baler’s productivity. In addition, the single looped nose roll with scraper in the tailgate has been replaced in the new models with a smooth front roll and spiral looped rear roll. The rotating action of the latter prevents crop from wrapping at the nose, and a gap in the tailgate side sheet allows crop to be expelled from this area. This eliminates the need to clear crop from the nose roll and improves the tailgate. The IntelliBale system, which can be specified on ISOBUS class 3 compatible T6 and T7 AutoCommand tractors automates the control functions,

reducing operator fatigue and fuel consumption. This technology enables the baler to control the tractor’s forward motion: it brings the tractor to a stop when the pre-set bale diameter has been reached, wraps the bale, raises and closes the tailgate when the bale has

been ejected, then gives the operator the signal to cycle the FNR lever forward and back to neutral to continue baling. The system also ensures uniform bale size, as diameter is automated, and doesn’t rely on the operator’s reaction time. www.newholland.co.nz

New Holland’s Roll-Belt variable baler.

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DAIRY NEWS FEBRUARY 14, 2017

26 // MACHINERY & PRODUCTS

Drill’s name says it all BAY farmer Hugh McDonald farms 500ha near Waipawa, describing 80% of his property as rolling country. In spring he sows summer crops such as forage brassicas, and in the autumn he sows grass and oats, in all amounting to 100ha per year. Mc Donald originally ran a Duncan Renovator Mk3 for a decade, but changed to the company’s TFD (The Farmer’s Drill) in November, and so far seems pleased by its reliability, which he suggests results from simple design and strong components. The change of models brought a switch from 6-inch spacings to 5-inch (125mm), which suited McDonald

HAWKE’S

as he was looking to achieve more coverage The machine has a 3m working width with 24 rows, with a hopper configuration that can be used solely for seed or divided into two with one section for fertiliser. McDonald favours the latter set-up, normally carrying about 500kg of fertiliser. The TFD has heavy-duty S tines, three delivery shoots for seed, fertiliser and material from an optional third box, and uses electricdriven distributors activated by ground-following radar. Calibration is said to be simple, taking about five minutes to check, as are seed or fertiliser rates which

Hugh McDonald

can be adjusted on the move, with any changes stored in the control monitor for future reference. McDonald uses the TFD as a direct drill in sprayed-out pasture or after oats, and to drill into cultivated ground. The strike rate is typically 90% as a direct drill, so long as the weather plays its part, but it is closer to 99% when it’s working in cultivated paddocks. The TFD works well on rolling country and copes well with rocks. Each coulter is individually sprung which allows good ground following on the typically rolling country, while easy adjustment maintains penetration of the coulters.

Drilling at 8-9km/h behind an 115hp tractor is said to give a work rate of about 1.5/hour including

loading time; bags are carried up to the platform. @dairy_news

facebook.com/dairynews

Compact X4 packs big tractor punch MARK DANIEL markd@ruralnews.co.nz

THIS SMALLEST farm

tractor in the McCormick range, the new X4, from manufacturer Argo

Tractors, should appeal to those looking for low weight and compactness before power. Using Deutz Tier 4 engines with 4 cylinders and 2900cc capacity, the X4.20, X4.30 and X4.40

deliver 64, 69 and 74hp respectively, while the odd man, the X4.35, uses a 4400cc, 4 cylinder Perkins engine to pump out 75hp to Tier 3 standards, and is said to be price competitive.

Features and specifications include 2 or 4WD, flat platform ROPS or modern cab versions, and a choice of transmissions with 12 x 12 or 16 x 16 speeds with creep, and a final choice

McCormick’s new compact X4 range.

FOR MORE GROUND-BREAKING FARM MACHINERY STORIES...

of dry clutch, synchro shuttle or the wet clutch, power shuttle version. Hydraulics are provided by an opencentred, gear pump set-up delivering 49L/ min, and a separate, 28L/ min unit for the power steering, braking and gearbox lubrication. Lift capacity is 2700kg as standard, although this can be boosted to 3400kg with option assistor rams installed. On the cab versions, designers appear to have managed to fit a fullsize cab on this compact unit, to give space, comfort and excellent

visibility. Forward vision is enhanced by a slim header rail and a deep screen, while the fourpost design, and the lack of ‘B’ pillars allows easy access through full width doors. Controls are grouped logically in the righthand console, and angled towards the operator for easy access. Clever installation has the air conditioning filters built into the rear cab pillars, reducing overall height to 2.4m on 30 inch tyre equipment. www.agtek.co.nz

NOW READ IT ONLINE WWW.DAIRYNEWS.CO.NZ Designers have fitted a full-size cab on the compact unit.

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DAIRY NEWS FEBRUARY 14, 2017

MACHINERY & PRODUCTS // 27

One-terminal control of tractors.

Getting smart with Isobus MARK DANIEL markd@ruralnews.co.nz

CLAAS HAS updated the S10 terminal used in its Arion, Axion and Xerion tractors to become fully ISOBUS-compatible, allowing it to simultaneously operate the tractor’s steering and ISOBUS-compatible implements. Available with all 2017 delivery

machines or as a retrofit option for existing terminals, the upgrade allows one-terminal to control the S10 and can also control cameras, implements, and for the first time can offer section control and task management features. The former prevents overlapping by automatically controlling sections during spraying, spreading or drilling, and it allows adjustments to deal with odd-shaped

paddocks or features like ponds or lakes. The task management function, with TC Basic or TC Geo options, should interest contractors and large scale producers, allowing detailed operating orders for individual sections to be created using the program on an office computer, before being transferred to the tractor. In use, TC Geo can be used for variable rate application

of fertilisers or sprays, and once a job is completed, proof of placement data can be transferred back to the office. The S10 has a 264mm touchscreen capable of displaying multiple application screens as required, and a ‘favourites’ menu allows users to create a personal access screen that displays up to 12 commonly used functions.

2 million milestone JOHN DEERE’S Waterloo engine plant in Iowa US

recently produced the 2 millionth engine since the factory opened 40 years ago. And the link with engines in the area goes back even further, when JD bought the Waterloo Gasoline Engine Co. in 1918, so just short of its centenary. Back to the present, engine number 2,000,000 was installed in an 8345 tractor built across town at the JD Donald Street plant. The tractor’s production was watched by the eventual owner, AgriNorthwest, a large potato farm in Washington State. The plant also makes engines for John Deere Power Systems, which supplies many OEM customers worldwide in agriculture, industrial and marine applications.

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