All eyes on our emissions plan. PAGE 6 TECHNOLOGY PAYBACK
Old shed gets revamp PAGE 26
AUGUST 14, 2018 ISSUE 406
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DIRA MUST CHANGE “Open-entry and open-exit provisions of DIRA well past its use-by date.” - John Monaghan, Fonterra chairman PAGE 3
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DAIRY NEWS AUGUST 14, 2018
NEWS // 3
Stop forcing co-op to pick up milk SUDESH KISSUN sudeshk@ruralnews.co.nz
NEW FONTERRA chairman John Fonterra/a2 tie up. PG.04
Valued staff call the shots. PG.29
Monaghan says regulation forcing the co-op to pick milk from farmers is past its use-by date. Speaking to Dairy News two weeks after his elevation as board chairman, Monaghan singled out the need to secure changes to the Dairy Industry Restructuring Act (DIRA) as the biggest challenge for the co-op. He says the co-op is looking forward to working with the new Government and Agriculture Minister Damien O’Connor on the DIRA review underway. “We will push to get rid of the open-entry and open-exit provisions of DIRA; it’s well past the use-
by-date.” Fonterra believes open-entry provision is no longer needed because the industry has become competitive. Monaghan points out that main purpose of DIRA was to promote competition and to give farmers and Kiwis choices: today New Zealand farmers can choose from roughly 10 independent processors, only five of which are New Zealand-owned. “Competition is a good thing for Fonterra and we believe competition is here to stay; Fonterra’s milk share has dropped from 91% to 82% because of competition.” Monaghan says if the open-entry provision is left in place it will “wipe out the progress that’s been made.’ “Because once you have a few processors who’ve made inefficient investment decisions that
only stack up with open entry, it has the potential to lead to significant excess manufacturing capacity in the industry. “This creates a risk of a downward spiral of low-margin competition that will hold back moves up the value chain and ultimately result in business failures.” Fonterra also points out that it can’t refuse a farmer joining the co-op based on environmental or animal welfare
NO APOLOGY FOR DELAY Old, grey and loveable. PG.34
NEWS ����������������������������������������������������� 3-22 OPINION �������������������������������������������� 24-25 AGRIBUSINESS �����������������������������26-27 MANAGEMENT ������������������������������� 28-31 ANIMAL HEALTH ���������������������������32-33 MACHINERY & PRODUCTS ��������������������������������������34-36 TRACTORS & MACHINERY ������������������������������������ 37-38
FONTERRA CHAIRMAN John Monaghan is making no apology for the time taken to appoint a new chief executive. Before his election as chairman, Monaghan has been closely involved in the process to appoint a new chief executive; he’s now leading the process with full involvement of the board. Monaghan told Dairy News that appointing the new chief executive is “a big decision”. “We have had strong external and internal candidates,” he says. “We are taking our time and make no apology for this.” He says a decision will be made by the end of this year. Fonterra chief executive Theo Spierings announced in November 2017 that he would step down this year.
John Monaghan, Fonterra chairman.
issues. Monaghan also wants a review of the raw milk regulations, where Fonterra has to supply raw milk at a regulated price to other independent dairy companies. Companies buy milk from Fonterra at a ‘subsidised price” before processing it and then using it to compete with Fonterra and other New Zealand-owned dairy businesses in export markets. Monaghan, who took over the chairmanship from John Wilson, has been on the board since 2008. He grew up on a dairy farm and has current farming interests in the Wairarapa and Otago; he served as Fonterra Shareholders Council chairman before being elected to the board. Monaghan says the unanimous backing from fellow board members and calls of support from farmers had energised him for the role. He says serving on the council and Fonterra’s board have helped him develop strong networks both domestically and internationally with key stakeholders. Over the years Monaghan has also taken been taken a lead role in representing Fonterra’s interests on customer visits and global trade issues. @dairy_news facebook.com/dairynews
s last.
DAIRY NEWS AUGUST 14, 2018
4 // NEWS
Fonterra, a2 Milk tie-up SUDESH KISSUN sudeshk@ruralnews.co.nz
A2 MILK market leader a2 Milk Company (a2MC) is eyeing a joint infant
formula production facility with Fonterra in New Zealand. The company has an exclusive infant formula deal with Canterbury processor Synlait; last week
a2MC increased its stake in Synlait to almost 18%. Managing director Jayne Hrdlicka told Dairy News a2MC is talking with Fonterra “about potentially establish-
A2 MILK SUPPLY BASE TO GROW FONTERRA SAYS A2 milk for recently launched Anchor a2 fresh milk is from a farm it owns in Manawatu. However, to bridge the gap between now and the start of the season, the co-op is sourcing milk from a winter milker near the Longburn site at the normal farmgate milk price. The co-op will look at growing its A2 milk base as demand grows, says Fonterra Brands New Zealand acting sales director Grant Watson. He says farmers interested in supplying A2 milk to Fonterra should tell its subsidiary Farm Source. “As we understand what demand is over time, we can work with those
farmers to bring them on board,” Watson told Dairy News. “The process will take some time but we expect our farmer base to grow over time for A2 milk.” Asked about the milk price for A2 milk, Watson says it is the same as conventional milk but will be “reviewed in time by Farm Source”. He says Fonterra will know more about the demand for A2 milk once Anchor a2 milk is marketed from early October. Anchor a2 milk is important to the value-added business that contributes to farmer shareholders’ dividends.
Fonterra’s Grant Watson and a2MC chief executive Jayne Hrdlicka at Anchor a2 milk launch.
ing another production facility to give us greater capacity”. “We have a great and longstanding relationship with Synlait, a partner of a2MC from the very beginning. “We are impressed with them as a company; they continue to grow from strength to strength,
very innovative and high quality. “That partnership will continue to grow and develop in the future as well.” With Fonterra, a2MC is also looking at cheese and butter made from A2 milk. But Hrdlicka says the most important thing is to
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get a2 fresh milk off the ground in New Zealand. Fonterra and a2MC this month launched Anchor brand a2 fresh milk in Auckland. It is now sold in Pak ‘n Save and New World North Island stores and will go national by October. Fonterra Brands New Zealand acting sales director Grant Watson says the co-op is “very confident” that Anchor a2 milk will do well. “Firstly, we believe it will be helped by the strength of the a2 brand along with our distribution network through NZ,” Watson says. “Secondly, looking to the success of a2 milk in Australia, that’s a lead indicator as to what could play out in NZ.”
In Australia, a2 Milk is said to be the numberone premium brand fresh milk, with 10% of the total market share. Watson says Anchor is set to give consumers more choice beyond its present ten varieties of milk. “Anchor will continue catering to a variety of diets, ages and stages so that as many people as possible have the option to consume milk products,” says Watson. Hrdlicka says the company is pleased to be finally providing its own brand of a2 milk to New Zealanders for the first time, “especially given this is where our company was founded”. @dairy_news facebook.com/dairynews
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NEWS // 5
No change to seed reps’ pullovers NIGEL MALTHUS
NEW ZEALAND farm-
ers will see no immediate difference onfarm from the sale of the PGG Wrightson Seeds business. PGW said on August 1 it had agreed to sell PGW Seeds to the Danish seeds giant DLF pending shareholder and regulatory approvals. This ended weeks of speculation over a likely sale, with Australia’s Elders or Holland’s Barenbrug tipped as possible buyers. Under the agreement, PGW will sell 100% of PGW Seeds for NZ$421 million. DLF Seeds will also assume or repay PGW Seeds’ net debt at June 30 of about NZ$18m. PGW chief executive
Ian Glasson said a lot of work had gone into ensuring a close working relationship between PGW and PGW Seeds under its new ownership. PGW provided a critical retail outlet for PGW Seeds, and similarly PGW needed seeds as part of its offering to farmers. “So it’s a good synergistic and strategic relationship and that’s what we’ve spent a lot of time locking in.” The PGW Seeds brand will be licensed to DLF so the company will operate as before, even the reps still wearing the familiar PGW blue pullovers. “You will see PGW Seeds people in the paddocks alongside PGW Livestock reps or real estate reps or whatever
PGW chief executive Ian Glasson.
else is there.” They would continue with the Wrightson name “for some time,” he said. “On the farm, nothing changes as far as the farm is concerned other than the seed business is now
owned by a group of seed growers in Denmark.” Glasson said it is important that DSL is a cooperative of seed growers who “really get” the seeds business. The offering of seed varieties will
The largely Chineseowned Agria Asia owns 50.2% of PGW; and Glasson pointed out that Ngai Tahu owns 8% of Agria Asia so the majority shareholding is indirectly NZ-based. It has corporate and mum-anddad investors, including many rural shareholders, he said. The proposal will probably be put to shareholders at the annual meeting in October.
holders in an essentially tax-free capital return. “Then the question is, do you use the rest to repay debt or grow the business?” Glasson said DLF’s compelling offer would be good for all stakeholders -- “a substantial amount of cash and it’s a good price for the business”. PGW with a good rural services businesses with sales of $800m of the $1.2 billion total.
grow. “Farmers will not see any change on the field; hopefully we can improve, give a broader offering of seeds and increase the rate of development of new offerings.” Glasson said all this was decided after a review last year before he arrived at the company in November. The board is yet to decide where next to take the review but it has options including repaying $290m to share-
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DLF ALREADY has a small presence in New Zealand -- a Christchurch subsidiary, DLF Seeds and Science with a dozen staff, set up in 2004. General manager Tom Bruynel conceded that from NZ vantage point, DLF buying PGW Seeds looked like David taking over Goliath. “But looking from a global point of view, as you have to, that’s not the case. DLF is easily the biggest grass seed company in the world with dominant market share in the northern hemisphere, 50% in Europe and probably 25% worldwide.” Under the proposed deal, DLF will also buy PGW Seeds’ branding so farmers dealing with PGW Seeds
will notice no difference. Bruynel said decisions on the existing DLF branding are yet to be made. It could be six months before the deal gets all the approvals. “Clearly the DLF brand here has good equity with fantastic varieties in forage grasses, fodder beet and turf grasses. “That has to continue.” Bruynel said DFL’s local business had been growing “quite nicely”. “Part of the game-plan of DLF worldwide has been to look at acquisitions in the southern hemisphere, and the opportunity to look at Wrightsons Grain and Seed was something we couldn’t pass up.” DLF has been looking at it “diligently” for the last four or five months and is happy with progress,
said Bruynel. DLF chief executive Truels Damsgaard said in a statement that DSL had come to know PGG Wrightson Seeds and its management, headed by group manager John McKenzie, as true seedsmen with a philosophy compatible with DLF’s. DLF got unwelcome publicity in 2016 when a velvetleaf incursion here was blamed on contaminated fodder beet seed imported from DLF’s Danish factory. Bruynel said then that it was due to undetected contamination in the fields where the seed was grown in Italy and France. The factory’s protocols were “considerably tightened” to prevent a recurrence. – Nigel Malthus
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6 // NEWS
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All eyes on NZ emissions plan PAM TIPA pamelat@ruralnews.co.nz
NEW ZEALAND has the
highest agricultural emissions of the 170 countries that have ratified the Paris agreement, says DairyNZ’s Nick Tait. This is why many countries are watching to see what NZ will do over the next 10-20 years, he says. The dairy industry contributes 22.9%, or just under a quarter, of NZ’s emissions. About 49.2% of all emissions come from agriculture, of which dairy is about 46.5%. “For a developed country we have a unique profile. The closest one to us is Ireland where about 30% of emissions come from agriculture,” Tait told the NZ Institute of Primary Industry Management conference in Hamilton last week. A lot of work is occurring together, he says. The NZ Greenhouse Gas Agricultural Gas Research Centre and the Pastoral Greenhouse Gas Research Consortium are research streams closely linked. Within the last two years BERG (Biological Emission Research
Group) has been set up ‘’to quantify what we can do to reduce emissions and what that is going to cost us’’. Reports from that are imminent. “There are lot of work streams all trying to work together and that includes
platform to look at what we can do in the context of a profitable and sustainable dairy industry. “This is due to finish in November this year.” First came building a foundation, including workshops for rural
Nick Tait, DairyNZ
being part of the Global Research Alliance,” Tait says. “After the Paris agreement was signed we were asked as an industry ‘what are you doing to help the farmers to reduce emissions?’ ‘’As of June last year we launched the Dairy Action Climate Change. That was an industry/government agreement with Fonterra as a partner and supported by the Ministry for Primary Industries and the Ministry for the Environment. That tried to set the steps for building a
professionals in September last year, for farmers in June this year and other roadshows for farmers and dairy environment leaders. Secondly they set up a couple of training courses with AgResearch and Massey University to try to seed the market to train rural professionals. And they went to dairy environment leaders’ groups and asked ‘who would like to become climate change ambassadors?’ “[These represented] farmers who can speak for the industry so
it doesn’t look like it is coming from us all the time. ‘’Another component due to start shortly is ‘Steps to a Lower Emissions Dairy Sector’. This is real cases with real partner farms where we can track a journey and see what emissions reduction and nitrogen leaching reduction would actually look like. ‘’We want to quantify the effect on production and profitability and the feasibility of some of these mitigations options. “It is all very good to model a reduction, but actually to quantify that onfarm is where we want to go.” The last component is the onfarm recording Fonterra has implemented to set up -- similar to the nitrogen programme -a report pathway to 100 farms as a pilot to look at what their actual emissions would be and what information they would want on those emissions. ‘’They looked at that in Overseer and as part of a life cycle analysis and a national inventory. They will provide information back to farmers on what their footprint would actually look like.’’
METHANE NOT OFF THE HOOK PROMPTED a number of questions from rural professionals to experts last week, but none of the answers gave any joy to those who think methane should be a special case among greenhouse gases (GHG). “Unfortunately the science is pretty solid: methane is a GHG and accumulation of methane warms the earth,” says Professor Mark Howden, Climate Change director at the Australian National University. The standard view on methane is that it is shortlived compared to, say, carbon dioxide, but nevertheless it has a net warming effect on the globe, he told the NZ Institute of Primary Industry Management conference. “That has been established very well.” Methane from a cow contains some biogenic carbon (from the
METHANE
grass) that goes into the atmosphere and then gets oxidised and forms carbon dioxide and then goes back into the grass. However a study by Howden in 1990 showed that to be a very small amount – no more than 10%. DairyNZ’s Nick Tait, who helped set up Dairy Action on Climate Change, says methane gas is short-lived: about 12.4 years is its residence time in the atmosphere. But it can capture energy so under the 2007 IPCC report on which the Paris agreement is based it is 25 times more potent than carbon dioxide. ‘’There has been a subsequent report which says it is higher than that, but that is not in the agreement.’’ That is the game we have to play internationally and to change that metric would mean a lot of political manoeuvering among the 127 coun-
tries that signed the agreement. Explaining what it meant by methane being a flow gas, Tait said methane is treated as about 25 times more potent than carbon dioxide. But it doesn’t live in the atmosphere as long as other gases. The residence time is about 12.4 years but there is still some flow-on effect after that of 50-70 years. “But it is obviously quite different from a gas like carbon dioxide; when you put it into the atmosphere it stays there. Then you put another bit on and it adds on top. That is what we call a stock gas; it ramps up over time. “But methane, because it is only a short-lived gas, as you put more in, as long as you don’t increase the concentration over that 60-70 lifetime, what you put in eventually will be coming out and sequestered back.” – Pam Tipa
DAIRY NEWS AUGUST 14, 2018
NEWS // 7
D-day for M.bovis PETER BURKE peterb@ruralnews.co.nz
THE MYCOPLASMA
bovis outbreak is heading for its first real crunch point in a couple of weeks with the start of the next round of bulk milk tests. According to the head of Biosecurity New Zealand, Roger Smith, the results obtained from the bulk milk tests will be a telling moment in knowing the spread and nature of the disease. Smith last week met with the chief executives of DairyNZ and Beef + LambNZ and other industry reps to discuss how the eradication is tracking; so far there are no surprises with just three more herds confirmed as infected. As of last week 59 farms are confirmed as having M.bovis and 37 more are ‘active’ (having more tests). Smith is not surprised that more herds are confirmed as infected because they were seen as likely to be. But it’s the results of bulk milk tests that will give a much more accurate onfarm picture. “We would know the results the day after the first test, but it is comprehensive testing so
there are six rounds. The final results will be out in November but we will have the North Island results in early-mid October and the South Island results after that. “The results will give us a good view of whether things have panned out the way we expected with just a few farms infected. But if we get a lot more infected farms or farms where we cannot trace back where the disease came from, that would raise questions for us.” Smith says a ‘dropdead’ point would be the sudden discovery of strains of M.bovis different from those so far found. Everything is being examined and the team will set up ‘technical triggers’, essentially asking if the strategy of eradicating M.bovis is still feasible and acceptable to industry. These things need to be done with the backing of industry, Smith says. “The position has always been that this is being done for the industry and in the end if eradication is not the right thing for the industry then a decision would need to be made and that would be a decision of the Government,” he says.
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NO MORE APATHY MEANWHILE A change of heart is seen about M.bovis among North Island farmers. DairyNZ’s Andrew Reid says at one stage many North Island dairy farmers regarded the disease as a South Island problem, but he says this is no longer the case. “The sense of apathy we might have found across the North Island this time last year towards M.bovis has disappeared. We are seeing a lot more interest in onfarm biosecurity across the country. “Questions are being asked about the use of service bulls, about mating policies and trading stock, and a lot more due diligence is being done on farms to make sure stock being brought onto farms are free of M.bovis or whether they may have been exposed to the disease,” he says. Reid says farmers are now more perceptive and aware of their responsibilities to look after their farms and themselves.
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DAIRY NEWS AUGUST 14, 2018
8 // NEWS
Finding the last M.bovis farm PAM TIPA pamelat@ruralnews.co.nz
MOST FARMS infected with Mycoplasma bovis may already have been detected but you must be confident you have got the last one, says MPI veterinarian epidemiologist Andy McFadden. Studies at this stage also indicate that the M.bovis incursion is a one-off that occurred in late 2015. Personally he is confident not many infected properties are yet to be found, he told the NZ Institute of Primary Industry Management conference in Hamilton. Asked for his personal opinion on what stage the eradication process had reached, he sounded notes of caution and patience.
IT ALL POINTS TO CHANGE ON VERY large farms with different ownership models today many veterinarians have limited contact with the animals, says McFadden. That affects our surveillance ability: “What worked in the past – an eye on new incursions – won’t work now. We need to understand that and work out other solutions.” He suggested legislation may be needed for greater oversight of animal welfare and a review of veterinary contact with farms and biosecurity risk behaviours.
“When you are talking about eradication you have to find the last farm, and even that is a simplification. If the last farm is a dead-end host all the animals [will be] going to the slaughterhouse and it is not a forward risk. “But in talking about the last farm where there is a risk of forward transmission… it is not a case
of ‘we’ve got 99% of the infected properties’ because we’ve got to find that last farm.” Being confident you have found the last one is the difficult bit, he says. Work on improving testing for the disease is ongoing. “At the end of the response we are going to have more tests and more confidence that in
fact we are free.” To be asked what stage the eradication process is at is a difficult question because it is not linear, he says. McFadden suggests we have a ‘social media instant-gratification’ approach to eradication -- wanting to get rid of a problem in a very short time. Disease control programmes, such as hydatids, have historically taken decades but NZ has succeeded in eradication when other countries haven’t. “We still have a difficult disease; the tests are time consuming. It needs working through over time and we need patience.” Earlier he told the conference that the infected farms are well and truly connected. Understanding an infec-
Andy McFadden, MPI
tion network in an outbreak is almost unheard of at this level of detail. “In this particular outbreak they are almost all
connected and we have an understanding of how that connection has occurred.” A group of individu-
als got together from government and industry to try to work through where the M.bovis came from. A number of scenarios were looked at and genetic testing of the bug was carried out. This testing ruled out imported cattle from Australia as a pathway. Germplasm is the most likely pathway, but none of seven pathways looked at seemed particularly likely. He referred participants to the pathway report on the MPI website. They are assuming a one-off event that has resulted in this outbreak. Looking at the rate of mutation and the different strains they can work out how long it is likely to have been here. All the information supports that late M.bovis first arrived in late 2015.
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DAIRY NEWS AUGUST 14, 2018
10 // NEWS
GDT price falls end PAM TIPA pamelat@ruralnews.co.nz
WEATHER-RELATED RISKS in the northern hemi-
sphere looming on the horizon may have triggered some buyers to secure extra inventory cover at last week’s Global Dairy Trade (GDT) event, says Rabobank senior dairy analyst Michael Harvey. Exporters would be encouraged by the overall price index remaining unchanged, an end to the four consecutive falls of previous events. “Weather risks continue to be a key watching brief at the moment across global markets,” says Harvey. “The European Commission (EC) has announced measures to assist European farmers dealing with drought in several member states.” Some parts of northwest Europe are very dry and production growth in Europe was
Michael Harvey, Rabobank
already slowing before this, says Harvey. Earlier estimates put Irish dairy production up by 5% in 2018 but a report from the Irish dairy industry this week showed it is now unlikely to be up on 2017 levels. Ireland has had a prolonged winter followed by drought.
“In the US, the impact of a heatwave on milk supplies is also dominating conversations. Again, it is early days to see the real evidence but fat levels in milk have reportedly decreased due to high temperatures.” Results were mixed across the complex at last week’s auction, he says. Whole milk
powder (WMP) prices were flat, with the WMP price index lifting just 0.1%. According to the data, volumes sold at this event jumped 34% on the July 18 event. ASB’s Nathan Penny notes over the past five auctions overall dairy prices have fallen 9% with WMP down 8%. Butter is down about 17% over this period. Penny says there is a downside risk to ASB’s 201819 milk price forecast of $6.50/ kgMS and Fonterra’s $7/kgMS forecast. The Chinese yuan has fallen against the US and the NZ dollar. “The falling yuan has stinted Chinese buying power and lowered demand from our number-one dairy market. Moreover, as the US-China trade tensions drag on, the more likely the yuan is to stay at this lower level, with Chinese dairy demand likely to remain lower too.” @dairy_news
FONTERRA JV IN INDIA FONTERRA IS entering the Indian market in a joint venture with a massive retailer. The partnership with Future Consumer Ltd will operate as Fonterra Future Dairy Partners. Future Consumer’s owner Future Group is present in 26 of 31 Indian states with 2000 trade outlets, 5000 retail outlets and nationwide cold-chain and non-chilled distribution. Fonterra’s chief operating officer global consumer and foodservice, Lukas Paravicini, says the venture will launch Fonterra in India. “It will allow us to prepare the groundwork and make the most of our expertise as we enter the world’s largest and fastest growing dairy industry. Consumer demand for dairy in India over the next seven years is set to increase by 82 billion litres – seven times the forecast growth for China. The partnership will be driven by growth through profitability.” The venture will begin with product development and marketing, and sorting capital investment. The first consumer products will be launched by mid-2019, using locally sourced milk and dairy products from New Zealand. “We will also use this time to settle in the partnership infrastructure, learn the market and prioritise geographies.” Paravicini said the venture coincides with the Indian dairy industry transforming itself. “This has resulted in a big shift away from traditional locally based dairy businesses with limited product and brand differentiation, to a new era where value-added and innovative dairy products are in high demand.”
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DAIRY NEWS AUGUST 14, 2018
12 // NEWS
Robot-led cows tell their story SUDESH KISSUN sudeshk@ruralnews.co.nz
Amy Gemmell’s new book to counter negative publicity around dairy farming.
AS A dairy farmer, how do you respond to neg-
ative comments about farming in the media? Write a book; that’s what Manawatu sharemilker Amy Gemmell did. A former school
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teacher, Amy and her husband Greg are herd owning sharemilkers, milking 240 cows on her parents’ farm; the robotic milking shed with three Lely robots can milk 240 cows three times over 24 hours. “We have some OAD cows, with the rest milking twice or three times a day particularly in early lactation; we split-calve and milk year round,” Amy told Dairy News. The farm began running farm tours for local and tourist groups and the idea of writing a book came after many positive comments about the dairy farming system. “I had also taken umbrage at many negative comments about dairying on social media and in the media in general. Like most dairy farmers we are proud of what we do and take good care of our animals.” The book, On the Free Range, Robotic Dairy Farm -- Midnight Mooovers, is about two of their cows
-- Tinkly and Smoochy -and their discovery that they are no longer shut in the paddock. They sneak out in the middle of the night and find they can milk themselves and enjoy a midnight molasses snack before moving to a fresh paddock. They are a bit worried that Farmer Goat might tell them off for being sneaky but he and Mrs Farmer Goat are very happy that their clever cows have worked out this new system all on their own. The book is illustrated by a South Island professional cartoonist Rick Menard. Some profits from book sales will be donated to their local rural schools, Amy says. “It’s a great NZ story for anyone aged 2 - 102 who loves farming, cows or technology.” Books are priced at $13 each or $12 each for two or more. Email orders to robotfarmnz@gmail.com
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FONTERRA HAS been voted top graduate employer in New Zealand by university students and recent graduates. So says the Talent Solutions and Nxtstep Student Pulse Survey, run since 2014, which this year drew at least 1500 responses. In the survey’s top eight were, first, the co-op, and PwC, ANZ, Deloitte, Tonkin & Taylor, Treasury, EY, KPMG and Vodafone. “This helps to show how highly regarded we are as an employer,” says Mark Van Zon, acting managing director people and culture. “It’s a credit to everyone making Fonterra a great place to work, especially the teams who recruit and support our graduates. And the graduates themselves do an incredible job of cultivating a fun, welcoming environment.” Fonterra’s graduate programme (with business, technical and agri-businessstreams) has run for 40 years. It is said to have helped many employees succeed and contribute to the co-op, including management staff.
from parasites for longer, improving the health and performance of your stock and all with the added flexibility of nil withholding periods.
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DAIRY NEWS AUGUST 14, 2018
14 // NEWS
Nifty electrical work reduces energy losses SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA AND
global energy management company Schneider Electric have teamed up to improve electricity use at the world’s largest milk powder dryer. The Darfield Dryer 2 in Canterbury, opened in 2013, produces 30.5 tonnes of whole milk powder per hour. Schneider Electric’s general manager partner projects, power solutions and industry, Steven
Gallagher, says large users of electricity often generate energysapping harmonics that compromise the performance of the very network on which they depend. Fonterra’s Darfield plant could have been a culprit if not for harmonic filtering equipment supplied by Schneider Electric, he says. Unlike a traditional system, the set-up at Darfield now reduces heat losses by about 20kW/ hour. “The new system has
been very successful, and exceeded all expectations and targets for the project,” Gallagher told Dairy News. At the Darfield site most motors are controlled by variable speed drives, essential for precisely matching AC motors to process requirements but with much less energy consumption, especially by pumps and fans. Gallagher says as a side effect they also represent a non-linear load, contributing to harmonic distortion in the electricity
supply. “Harmonics cause transmission losses across New Zealand’s national grid, wasteing energy by generating excessive heat. This in turn requires electricity suppliers to build more, bigger power stations with higher-capacity power lines and much larger electrical equipment to offset the losses. “Eliminating harmonics not only greatly improves power quality and the grid’s efficiency, it also helps to contain the overall cost of electricity.”
Fonterra Darfield boasts the world’s largest dryer.
A conventional harmonic filtering solution for Dryer 2 (twice the size of Darfield Dryer 1) would have doubled the cost, Gallagher says. “But between Fonterra and our Schneider Electric designers we developed a much more cost-effective option using phase-shifting transformers. “Despite the slightly more expensive phaseshift transformers and the cost of relocating the filters from Dryer 1, the cap-
ital expenditure for Dryer 2’s harmonic mitigation came in at less than 10% of the Dryer 1 spend.” The new system exceeds all expectations and targets of the project, he says. Fonterra group manager electrical engineering Glenn Sullivan says a single-provider approach with Schneider Electric allowed the engineers and designers to view the overall project as a whole and select the most appropriate equipment.
“ Schneider Electric’s clean power specialist, Marc Marchal, did an exceptional job to help design a harmonics solution. “Harmonics can be trimmed by smarter, improved designs for our plants,” says Sullivan. “While design alone won’t entirely eliminate the issue, it can reduce harmonics to a point where the filtering solution won’t be as expensive. Darfield is an excellent example.”
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DAIRY NEWS AUGUST 14, 2018
16 // NEWS
Warnings on China PETER BURKE peterb@ruralnews.co.nz
THE LAST decade has
been littered with unsuccessful joint ventures in China and we’ll probably see more, says Tim Hunt, Rabobank’s general manager food and agribusiness research in New Zealand
Tim Hunt, Rabobank
and Australia. He says an enormous amount of due diligence is required by companies planning to go into joint ventures in China. They must understand the market and what might happen later as the venture proceeds, he says. The market can offer great value if a NZ com-
pany gets the right business partner. But many unsuccessful attempts at JVs were made by people and companies in the dairy sector. “We could all do well to learn what went wrong from the mistakes made by the dairy sector. It is also fair to say that a lot also went right. “Imports were the balancing act for the Chinese market, which left the production here hugely exposed to rises in the demand for product but also reductions in demand. Volatility became a huge problem and choosing the right partners became an issue and a lot of people didn’t get this right. “And a warning: while being first-mover in the market has an advantage, it’s important to realise that the competitors arrive soon after and that’s made China bit more challenging in recent years.” Understanding the business culture of China is important, and to us in the west it is different and complex. But the Chinese find our business culture difficult to understand. “They talk a lot about the culture of the west and how new that is to them. In the last decade we have seen huge numbers of Chinese dele-
gations of executives travelling around NZ, Australia the US and Europe learning how industries work, who are the key players and how they operate in these markets. Our market is as foreign to them as their’s is to us,” he says. Much has been said about NZ risking overdependence on the Chinese market, much as it was on the British market in the 1960s and 70s and on Iran in the 1980s, Hunt says. But the risks in China are greater than was the risk of NZ’s reliance on Britain at the time. “The risks are different: China has certainly become like Britain was in that it’s become clearly the leading market for NZ agricultural products and that reliance on one market brings its own risks. “But the China situation is different from Britain in several ways: the Chinese market is far more opaque than Britain and it’s harder to ascertain what’s going on than it was with Britain.” Hunt says the big difference was the close political alignment between Britain and NZ which, however, also brought complexities to light when Britain joined the EEC.
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THE MIDDLE East is touted as a re-emerging market for NZ, but with Donald Trump now imposing sanctions on Iran this option is seen as rapidly disappearing. Tim Hunt says the recent rises in oil are increasing the purchasing power of the Middle East and they will become more important in the next year or two “But I don’t think we will see the Chinese sun dim anytime soon. It is extremely unlikely that the Middle East will ever rise to rival China again in the future of the NZ food industry.” Hunt sees swirling winds in international trade that may bring short-term gains for NZ, but also long-term pain. The gains are the fall in the NZ dollar and Chinese tariffs on US beef possibly presenting opportunities for NZ. But he warns that the US may assemble a coalition of nations to pressure China to drop these tariffs, and that NZ could get caught in the cross-fire of any trade war. There has also been talk about the US making soundings to join the CPTPP and Hunt says this may see the US gain in dairy trade, but he forsees this as a much better long-term outcome than not having them in this alliance. “NZ would rather have the US engaged in multilateral trade deals than running rogue and doing bilateral deals.”
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DAIRY NEWS AUGUST 14, 2018
18 // NEWS
Fert co-op raises profit 24% FERTILISER CO-OP
Ravensdown has posted a 2017-18 pre-tax profit of $63 million, up 24% on last year. It paid shareholders a rebate of $47 per tonne, and saw its value rise $50m over the year: equity rose from $379m to $429m. The result was not a one-off and not just seen in financial indicators, said chairman John Henderson. “The key thing is everything we’ve been focusing on and investing in for the last four years has been delivering returns for shareholders and building the value of the company along the way.” “While this is a very strong financial result, Ravensdown is not here to maximise profit at the expense of our natural
environment, safety or our local communities. “Returns for shareholders take many forms including new products, expertise and technology that help them reduce environmental impact and optimise value from the land. “Continued financial strength gave us the confidence to pay an interim cash rebate for the third year in a row and reinvest in the business to support our smarter farming purpose,” he said. For those who bought solid fertiliser before May 31, $17.50/t of the total rebate was paid on June 8 and for fully paid-up shareholders the remaining $29.50/t will be paid in cash by the end of August. Operating cashflow of $98m ($60m 2017) and balance sheet strength allowed the co-op to
Ravensdown chair John Henderson (left) with chief executive Greg Campbell.
invest in the business. Chief executive Greg Campbell said he is keen on the developments affecting the environment. “We are determined to help... farmers manage their nutrients and we encourage good farm-
ing practice. Our aim is to help others reduce their environmental impact so we must lower our own. Being welcomed into the Sustainable Business Council, joining the Climate Leaders Coalition and reporting our carbon
emissions for the first time is just the beginning. “Society is rightly expecting more and we are expecting more of ourselves,” said Campbell. The co-op increased its spending on R&D, including launching the ClearT-
ech effluent treatment system which it says could reduce dairying’s fresh water use by 42 billion litres a year. It continued its farm environmental consultancy, further developed its nutrient management advisory service and deployed its HawkEye mapping software that helps farmers comply with environmental rules. The co-op further grew in its coated urea product N-Protect which keeps more nitrogen available to plants with less loss to the atmosphere. Ravensdown spent $8.7m on finishing a new New Plymouth store, $5.3m on new loaders in stores and manufacturing, $2m on removing asbestos and $2.3m on health and safety. Its Primary Growth
Partnership programme, which is investigating more precise aerial spreading, is three-quarters complete. Its aim is to avoid spreading fertiliser on land where that would be ineffective, culturally insensitive or harmful to the environment. And the scheme is intended to raise pilot safety. The Ministry for Primary Industries endorses the scheme and agrees with extending its coverage to possibly 90% of hill country which could be soil-tested from aircraft. “I’m proud of Ravensdown’s contribution to premium food creation in New Zealand, the way we are preparing for the future and the efforts of all the team in another great result,” said Campbell.
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DAIRY NEWS AUGUST 14, 2018
20 // NEWS
M.bovis dents hope PETER BURKE peterb@ruralnews.co.nz
DESPITE A rise in
payout and profitability, dairy farmer confidence in Waikato and Bay of Plenty is relatively subdued. AgFirst economist Phil Journeaux, in his annual financial survey of dairy farmers in these regions, says while the good news of Fonterra’s $7/kgMS forecast payout is welcome, this is overshadowed by Mycoplasma bovis. M.bovis has been a huge jolt to the industry and farmers are concerned about how they might manage it and biosecurity in general. He notes that farmers are using AB where possible and not using service bulls. “They are looking at double fencing or the use of outriggers along their boundaries and being very cautious about rearing extra calves. Most are now
AgFirst economist Phil Journeaux.
duction fall in a climate season of two halves. Farm working expenses were higher than in the previous season, says Journeaux. “Expenses are now at what I would call full maintenance level and you are seeing farmers spending more on capital items [they need] such as effluent systems and cooling systems for vats. “They are having to pay more tax and are starting to pay back a lot
very careful about NAIT and tagging and tracing stock movements.” Also dampening dairy farmer confidence is the “ever-increasing compliance issues and cost”. The report notes that net cash income for dairy farmers in the two regions for the past season rose 24% to $901,901 despite their lower milk solids production, though this is expected to rise in the current season. The weather caused this pro-
of debt. Remember when we had the $3.90 payout, farmers had to borrow about $130,000, part of which was a Fonterra loan and the rest was from the bank.” He says assuming a $7/ kgMS payout this season, farmers will have repaid that debt, having taken three years to get back to square one. The report notes that, on average, farmers are planning this season to slightly drop their stocking rate as they more closely watch per cow production; this is related to reducing environmental impacts. “There is a subtle trend and I can’t see the stocking rate reducing significantly. “We don’t see the mood for expansion that we saw some years ago. They are now saying, ‘well, I have my farm and I will do my best on that and not worry about buying the neighbour’s place 10km down the road’.”
NEW PROCESSOR UNAFFECTED BY BUILDER’S CRASH NIGEL MALTHUS
NEW ZEALAND’S newest milk processing plant is on track to start accepting milk for full commercial production on August 20, unaffected by the sudden receivership of its building contractor, Ebert Construction. Auckland-based Ebert went into receivership on August 1, bringing work to a halt on projects nationwide. However, Mataura Valley Milk’s $240 million factory at McNab, near Gore, is so close to completion that it will not be affected. MVM general manager Bernard May said some Ebert staff remained on site completing “minor work”. “We are very fortunate that we weren’t exposed to their receivership because largely all the building works have been finished.” The Mataura venture, spearheaded by local farmers and businessmen, took off in 2016 with investment from the China Animal Husbandry Group, a large China state-owned enterprise in agriculture. Hamilton-based BODCO,
itself partly owned by CAHG, also has a small shareholding and will do the canning of some of MVM’s product. The plant was planned as the first in Australasia to be certified to MPI and USFDA standards. Farmer suppliers are expecting to be paid a premium in return for meeting more stringent farm practices including refrigerating milk to lower temperatures. May said the number of suppliers is confidential. “But we have farmer shareholders in our business who have joined to supply milk, and they are shareholders. We will be processing at full capacity at peak, predicted to be about October 24.” Mataura Valley Milk will run as a business-to-business operation, making a range of dried milk powders as bulk ingredients for other manufacturers of food products. At full capacity the plant is expected to process about 500,000L of milk a day, producing about 30,000 tonnes of infant formula a year, with 80-85% exported. It will have about 65 fulltime employees.
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DAIRY NEWS AUGUST 14, 2018
22 // NEWS
Abundant water thanks to irrigation NIGEL MALTHUS
Canterbury regional councillor and dairy farmer John Sunckell talks about the Central Plains Water Scheme during Dame Patsy Reddy’s visit.
THE LOWER Selwyn Te Waihora catchment’s aquifers and waterways have enjoyed “incredible recharge” since the
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environment. He said stage one had transferred about 80 million cubic metres of water from groundwater to surface water and saved water takes. “That’s the equivalent of two Wellington Harbours of water that was not extracted from the ground. And our monitoring at the bottom of the catchment was showing that we had an immediate effect on groundwater. “And with the last couple of years we’ve had, we’ve seen our springs flowing, our streams flow-
“We have the environmental outcomes of restocking those aquifers, boosting them up, getting our open streams and springs running. We have the environmental impact of planting and riparian management.”
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said the third-generation dairy farmer. Lowland streams are back up, and Sunckell said bores on his farm were flowing in March, which he had never seen before. Although recent weather had been a big factor, Sunckell believed the Central Plains scheme would have done the job, albeit more gradually, had the weather stayed on the dry side. “We’ve got those groundwater aquifers back up to where they should be and if all our science is correct we should now hold, with Central Plains coming into gear.” The Governor-General, Dame Patsy Reddy, recently toured the district with stakeholders including tangata whenua, ECan and Lincoln University academics. Her visit ended with presentations at Lincoln’s Ashley Dene dairy research farm, where speakers outlined the district’s environmental challenges as well as research developments especially in monitoring and mitigating farm pollution. Sunckell told the gathering that Central Plains had become a cornerstone of the community’s move towards improving the
ing, and all those things we were looking to achieve we are beginning to achieve. “So there’s a message from me in this: irrigation is painted as bad by some; for us there is a whole bunch of benefits,” said Sunckell. “We have the environmental outcomes of restocking those aquifers, boosting them up, getting our open streams and springs running. We have the environmental impact of planting and riparian management. “When we talk about irrigation it’s not just irrigation for productive values, it’s for total environment.” Sunckell served on the local zone committee before his election to the council. He said the committee always recognised two options for getting streams flowing again: augmentation from the Central Plains scheme or a 75% reduction in irrigation takes which would have decimated the whole rural economy. “When I started on the zone committee the target was to restore the mauri of Te Waihora while maintaining the prosperous land-based economy and thriving communities.”
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DAIRY NEWS AUGUST 14, 2018
24 // OPINION RUMINATING
EDITORIAL
Break the ties that bind Fonterra
MILKING IT... Not milking it IT SEEMS Fonterra is well behind in extracting value from milk: the International Farm Comparison Network research ranks Fonterra 17th of the top 20 companies in value extraction. While Fonterra collects the secondlargest amount of milk, it accounts for only 2.8% of world production and has estimated turnover per kgMS of only US60c. By comparison, the French company Danone is the 11th-largest milk processor, but it turns over US$2.40/kg, making it the best performer; Nestlé is next at US$1.90/kg. Fonterra’s product mix remains dominated by lower returning commodities.
Massey not so bad
Another PETA fallacy
Sack that worker!
FORMER ACT MP Deborah Coddington has jumped to Massey University’s defence as it comes under fire for barring Don Brash from taking part in a debate. Coddington tweeted that she disagrees with “some of the sniffy comments about Massey being an ‘inferior’ university” and “tarnishing all Massey cos of the VC’s stupidity”. “For example, the vet school has given us outstanding veterinarians over the years, for which our animals can be very grateful.”
ANIMAL WELFARE lobbyist PETA is at it again with a video asking “what would happen if parents told their children the truth about dairy?” The short piece by PETA’s French arm highlights its view that the dairy industry is secretive. It shows a young girl asking her father how milk is made, then he describes artificial insemination, the removal of a cow’s calf, and the animals’ eventual slaughter after years of exploitation. The girl is horrified.
US DAIRY company HP Hood LLC is voluntarily recalling 145,000 halfgallon cartons of its Vanilla Almond Breeze almond milk because a batch was tainted with cow milk. “Employee error” was blamed for spoiling the non-dairy drink, says the company, which issued the recall late this month. Critics have seized on the news, claiming the mix-up spilled the bitter truth about the almond beverage’s production – processing in the same plant as cow milk. Will this revelation leave a sour taste on some palates?
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FONTERRA FARMERS have been unhappy with aspects of the Dairy Industry Restructuring Act (DIRA) for some time. In many respects DIRA still makes sense, but the farmers point out, quite rightly, that a lot has changed since DIRA came into force 17 years ago and now two issues need urgent attention. DIRA was designed to promote competition, to give farmers the choice of who should get their milk. And today there are about 10 independent processors, about half of them overseas-owned. Competition has been achieved: Fonterra’s market share has dropped from 91% to 82% and now the co-op must compete for milk. For example, Waikato can have tankers from as many as four different companies travelling its roads -- from Tatua, Fonterra, Synlait and Open Country Dairy. DIRA now requires Fonterra to collect milk from any farmer who chooses to supply it. And that farmer may quit the co-op at will. Similarly, new dairy companies may pick and choose which farmers they sign up. This has seen new companies enter the market so that their suppliers, knowing that if it didn’t work out they could return to Fonterra, had the confidence to move their supply. Fonterra argues that this means there’s no longer a need for open entry and that if it continues too long it will wipe out the progress made. Also needing review are DIRA raw milk regulations that require Fonterra to supply raw milk at a regulated price to independent dairy companies. That makes sense in the domestic market, but when overseas-owned independent processors buy subsidised milk from Fonterra and then use it to compete with the co-op in overseas markets, something isn’t right. Fonterra farmers correctly insist we need to be giving New Zealand-owned dairy companies a fair go, rather than see NZ dairy farmers subsidising foreign-owned companies. Fonterra farmers want to see as much value as possible captured from NZ milk for Kiwis. Parts of DIRA need changing because times have changed. When Fonterra was formed it was nearly a monopoly, but now it must compete for milk. Private companies get to choose their suppliers and Fonterra must be free to do the same.
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DAIRY NEWS AUGUST 14, 2018
OPINION // 25
Media spin could hit beef industry NEIL SANDERSON
THE MEDIA spin on the distribution of M.bovis infected herds in New Zealand and the origins of these infections is misleading and could damage the beef industry, especially the seedstock industry. Recent reports say more beef than dairy farms are infected, a worry because to date the only infections in beef herds are believed to be in trading herds where imported dairy sourced animals have tested positive. These also have all been identified via trace forward pathways from infected dairy farms. Currently there are no known infected beef breeding herds or cow/ calf operations without links to infected dairy farms. We also know of no reported evidence of infection spreading to beef breeding cows or other base stock on these allegedly infected beef farms.This is not to say
Canterbury farmers with milk testing kits at a recent meeting.
no beef breeding herds are infected, just that no evidence of this has been seen to date. Most of the infected dairy animals that were moved onto beef fattening farms were likely infected by being fed M.bovis contaminated milk from affected dairy cows on the dairy farm of origin rather than from direct contact. The practice of feeding mastitic milk to young calves on dairy farms is
likely the most effective way of spreading this disease. The limited evidence to date so far also is highly suggestive that the disease entered NZ in legitimately imported European frozen germplasm and this may never be confirmed. DNA sequencing is highly suggestive that the M.bovis strain is of European origin. The infected farms also seem to be mostly Holstein based. Histor-
ically, MPI has been warned of such risks by the germplasm industry but were ignored. The risks associated with germlasm and M.bovis have always been there and certainly with embryos there was never any requirement by MPI or their predecessors to test donor cows for M.bovis. There is also evidence for M.bovis transmission in frozen bovine semen. Compelling anecdotal information suggests M.bovis has been in NZ much longer than the date MPI is touting but its apparent reluctance to backtrace is of concern, especially to the owners of herds now killed or to be killed before a definitive date and method of entry is identified. The fact that the TAG group of advisors to MPI over the M.bovis incursion was split on the decision to manage or eradicate should concern NZ farmers given the lack of conclusive information relating to this disease which is prevalent worldwide.
If it turns out that legitimate germplasm imports are implicated as the source of the M.bovis incursion, then that opens a minefield for NZ agriculture in general. Historically MAF was warned about weaknesses in its oversight of biosecurity related to germplasm and other imports but political pressure from within NZ and our trading partners has taken precedence in decisionmaking on risk to our economy. Is it time our whole biosecurity risk analysis process was overhauled, especially now that industry has been dragged into paying for these horrific incursions as they occur? If it is ever proven that legitimately imported germplasm is the incursion pathway, then the question that is surely raised is whether unwitting beef and dairy farmers should be expected to help foot the bill for the cleanup. • Neil Sanderson is a veterinarian and director of Advanced Genetics Ltd and director of Fossil Creek Angus Ltd, Otago.
DWINDLING EU PEST CONTROLS and political pressure for more sustainable agriculture in Europe is causing concern for local farmers. Restrictive regulatory processes and political decisionmaking based on gaining votes, rather than good science, means very few new active substances are introduced. A gradual loss of these substances will see farmers struggling to control pest populations in coming years. Trade barriers, threats to intellectual property, hazard-based assessments and politi- Mark Ross cal change are all causing regulatory uncertainty. With these drivers, an uncertain future prevails. Recently adopted European Union standards on endocrine disruptors resulted in complaints to the World Trade Organisation from Canada, Australia and the US. The criteria are deficient due to being based on hazards, without considering exposure – ignoring the principal of sound risk assessment. As a result, more substances could be banned, leading to restrictions in trade. Some of New Zealand’s fresh produce exported to Europe could come under greater scrutiny, due to a reduction in maximum residue levels (MRLs). It is critical that decision-making on MRLs and import tolerances are based on complete risk assessments. Currently, if a compound is identified as an endocrine disruptor or meets other hazard-based cut-offs, such as for reproductive toxicants, the classification decisions trigger regulatory nonGROWING REGULATORY
approval and default MRLs, regardless of the actual risks. Farmers support strict pesticide regulation and are well aware of the need to adopt measures to discourage the growth of pest populations. This keeps pesticides and other interventions to economically justified levels and minimises risks to people and the environment. But taking valuable tools away from farmers without sound risk-based science is ludicrous. Withdrawing products is sensible when it’s due to outdated chemistry, but not when it is brought about by political pressure, media ‘untruths’ or misinterpreted assessments. Regulation needs to focus on science and safety, not political popularity. Europe’s conservative approach to approving new agrichemicals is longstanding, but the current regulatory environment is out of control. A major concern is NZ regulators adopting EU practices for assessing products. Agcarm and its member companies are watching this. We remain focused on stewardship and ensuring that regulatory processes and decisions are sensible. Sensible regulatory systems allow the use of agrichemicals that are proven to be safe, environmentally friendly, effective and targeted. This allows a variety of new products that offer pest control solutions for farmers now and in future. • Mark Ross is chief executive of Agcarm. @dairy_news facebook.com/dairynews
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DAIRY NEWS AUGUST 14, 2018
26 // AGRIBUSINESS
Technology’s fast payback a big draw MORE FARMERS are buying dairy technology that gives them a fast payback, says Waikato Milking Systems. Automatic cup removers are a case in point: more farmers are installing them in outdated sheds to reduce labour costs and increase efficiency. “Automatic cup removers have an instant payback,” says Campbell Parker, chief executive NZ of Waikato Milking Systems. “They reduce overmilking of cows and so shorten the time you are
in the shed.” Parker said the trend for farmers to look at “getting more out of what they have by the simple addition of technology” was to the fore at Fieldays. “We still had farmers coming in to talk to us about new rotaries and herringbones but an increasing number wanted to look at technologies which would help them get more value and profit out of what they have. “Many have sheds which are no longer efficient and which, during
the growth years of the industry, would have been demolished and rebuilt. Now, however, there is a noticeable preference for optimising what they have and technology is the way to do that. “Automatic cup removers are a very popular option but we also had a lot of interest in the components within our dairy management system. Farmers tell us they have improved milking speed, cow flow and comfort and udder health by retrofitting our clusters. “Our modular compo-
Otorohanga farmer Vernon Corbett.
nents can be retrofitted into any milking system and immediately give benefits.” Otorohanga farmers Vernon and Theresa Corbett chose to retrofit an old shed. They sharemilking in Matamata when the option to lease 80ha next door to the family drystock farm in Otorohanga came up. “We already owned 24ha which I’d been leasing off my family so the opportunity to lease the neighbouring 80ha dairy farm with a 10 year option to purchase was
the opportunity we’d been waiting for,” Vernon Corbett said. The family moved back home in 2007, Vernon recalling the farm’s 18-year-old 21-aside herringbone shed had grown over the years. It started life as a 16-aside with room for 21 bails. “We were milking 186 cows when we came here and planned to gradually increase numbers to the 380 cows we’ll milk in 2018-19,” he says. “Right from the start we decided to utilise the length of the pit by
adding cups to make it 21 aside and, as I’d be milking on my own and drenching and applying teat spray, we’d add cup removers. I’ve been milking in herringbones with cup removers for 15 years and wouldn’t milk without them.” He says the plan was to build equity over the 10 years until their right to purchase came up. “We built the herd up naturally with our own stock, avoiding the need to borrow a lot of money
in those 10 years. We just reduced the mortgage to get to the point where it is now.” Throughout the years herd numbers increased from 180 to 260 and it was at this point that Vernon employed an assistant. “I’d milk the first herd and the worker would bring in the second herd and milk while I did other things. That worked well. We then added in-shed feeding so we didn’t have to drench.”
RIGHT TO BUY AT THE end of 10 years Vernon and Theresa Corbett exercised their right of purchase and bought the farm. Achieving our goal of milking 380 cows in a 21-aside was always going to a stretch, says Vernon. “It needed to be around 32-aside to minimise rows and milking efficiency, so we compared the financial and operational benefits of a new build with extending and retrofitting
the existing shed. “We looked at possible sites for a new shed but the cost of rebuilding just didn’t stack up. The construction of the current shed was sound, it was in a good position and it was relatively simple to extend the pit from 21 aside to 32.” Rebuilding the shed was the right thing to do. They had been milking cows for 25 years on their own, he adds. “We didn’t have a big cheque
book and so we had to create a dairy which fitted our budget and achieved our production goals for the farm. “Construction time was tight. We dried off the herd on 10 May leaving 8 to 10 weeks to rip the old shed apart, extend the pit, build new yards and install the new technology before calving started. As it turned out, we easily achieved that. “When it came to choice of technology, we went with
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Waikato Milking Systems. I’d used their gear previously and it’s value for money; we got everything we wanted at a good price and it’s efficient and easy to use.” The Corbetts are now one season on in the refurbished shed and it’s gone well. They plan on calving 380 cows in the 2018-19 season and will milk with two people in the shed in the mornings and one in the afternoon.
Rebuilding the existing shed was the right thing to do, says Vernon Corbett.
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DAIRY NEWS AUGUST 14, 2018
AGRIBUSINESS // 27
Upskilling helps tackle HR issues THE 2007 national
Farm Manager of the Year award winner Emily Woolsey (32) and her husband Daniel, of Southland, had a good grasp of dairy farming, says Primary ITO. But wanting to upskill she enrolled in a Primary ITO diploma course in agribusiness management. She was working as an occupational therapist in Invercargill and raising two sons; she had never worked on their farm fulltime. Then they moved back to a familyowned property in Gorge Rd to become equity managers. Their role was to oversee two dairy units (1300 cows) and work in a second equity partnership with a 400-cow property. Hence her management course. “I wanted to know more about operating an agribusiness,” she said. “I’ve learned a lot from other people over the years but I’ve also had to teach myself along the way. So I was aware of gaps in my knowledge and I thought the diploma could help fill those gaps.” The course human resources module has helped streamline the couple’s own human resources dealings with their six fulltime and two
part-time staff. “I put together a folder for successful recruitment and managing an effective onfarm team. I’ve been able to tweak certain areas of our HR practice and tailor resources to suit our business, notably the interview process. “What questions should we be asking in an interview. The success of your business all starts from the recruitment process and finding the right person to hire. The diploma’s HR module looks at all the critical areas to consider when employing someone.” Soon she will start performance reviews to keep staff motivated and help them develop and improve. “Farming often seems to lack a formal process where people can look at their strengths and weaknesses. Having a proper review helps people with their industry progression.” And the course finance module is also useful, she says. “I can now sit down and look at budget figures and understand what they actually mean and what impact they will have on our cashflows. “And I’m more confident in talking about these with our bank manager and accountant
because now I understand all the terminology.” The diploma course is specific to agriculture rather than a general business course. “I can directly relate it to our farming business. I’m an examples person so I love the fact all the examples relate to our agribusiness.” She attends classroom lessons once a fortnight and enjoys contact with fellow students to discuss
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what systems and ideas they use on their farms and what challenges they face. “Our tutor has been very good. If you get stuck you can easily contact him for help and motivation. He’s also good at challenging our ideas and thoughts about why we do what we’re doing and looking at the big picture.” The dairy industry appeals to Emily for its
From left: Emily, Carter, Jack and Daniel Woolsey.
progression pathways. “There are ways to improve yourself, grow your business and enjoy your lifestyle. We’ve got two young boys who love being out on the farm
with us. There are not many jobs where you can take your kids to work with you.” She finds many positive people in dairy farming, willing to share their
knowledge and experience to help others. She’s been heavily involved in the Dairy Women’s Network in recent years and finds plenty of opportunities to extend her skills.
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DAIRY NEWS AUGUST 14, 2018
28 // MANAGEMENT
Pasteuriser unit holds off disease A LARGE calf rearer has bought an $80,000 pasteurisation unit to protect his business from Mycoplasma bovis. Mark and Michelle Bocock annually rear about 4500 calves, all from dairy farms, and recognising milk as among the “biggest risks of spreading the disease” Mark said they had no option but to buy the unit. “Some rearers I’ve talked to won’t be rearing calves this year because it’s simply too difficult in this M.bovis environment -- having to keep mobs separate and the added cost of feeding milk powder from day one because you can no longer, safely, feed raw
BRIGHT FUTURE DESPITE THE hefty cost and extra work, Mark Bocock (a member of the Beef + Lamb NZ Dairy Beef Integration Project) remains optimistic about the dairy industry as the source of quality table beef. “The dairy industry is the engine room of the country’s beef industry and in recent years more farmers have bred the balance of the herd – after replacements – to proven beef
farm milk.” Bocock admits he has had to rethink every aspect of his business. “We will only be buying from known herds that we have dealt with for a long time and won’t buy any stock from saleyards. “All our farmers have
sires to produce calves in demand by rearers and ultimately by finishers and processors. “My advice to farmers is to… increase their calf cheque by breeding the balance of the herd to quality proven beef genetics. “DairyNZ and MPI have developed clear informative advice to guide you through calf rearing and mating to keep your farm safe.
high biosecurity and run effectively closed farms with few stock movements on and off, but we will also seek reassurance about test results for the [supplying] farm and/or whether it has been subject to M.bovis tracing by MPI. “We pick up and trans-
port all calves, and keep each mob separate for a time to observe and have confidence in their health status before they join larger mobs.” The Bocock purposebuilt calf transporter will be strenuously cleaned before and after each calf pick-up, “as much to pro-
Mark Bocock
tect our business as those of our farmers. They need to know we’re not going to compromise their biosecurity.” Most of the 4500 calves reared at the Bocock operation are Friesian bulls, with the balance white-faced dairy/ beef calves. All are reared to 100kg and then on-sold to finishers. NAIT compliance is strictly adhered to both with bought and sold animals, with the Bococks doing all the transfers so
they [and their farmers] ‘know it’s been done.’ ” They feed calves a mix of farm milk and milk powder. Starting this spring, raw milk will be pasteurised then stored in two new 20,000L stainless steel vats and fed to the calves. “Milk is the biggest risk of transmitting M.bovis; it only takes one cow in a herd to shed the organism to contaminate an entire vat of milk. If you fed that to calves it would effectively pass on
the organism. “We traditionally pick up farm milk in our own truck in the early days of calving – before the farm has built up sufficient volumes for the tanker to call – and should any contain M.bovis it will be killed by the pasteurisation.” Michelle Bocock has developed a comprehensive overview of the farm’s biosecurity standards, for the rearing operation and what they expect and need from their farmer clients.
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SEE SUCCESS IN CIDR TREATMENTS With calving now in full swing it’s time to start thinking ahead to mating. Planning ahead is essential for a successful mating period so we need to start preparing now. One way to tighten calving patterns and get more days in milk is to treat non-cyclers with a CIDR® programme. Treating these cows early provides the best return on investment compared to waiting for them to start cycling on their own, often many weeks later. By tail painting your herd 35 days before mating and recording heats, you can have a very good idea of the number of non-cycling cows in your herd before mating starts. A large scale Waikato trial of reproductive treatments for anoestrus cows has proven the economics of using CIDR® Cattle Inserts to improve herd reproductive performance at the start of the mating period. The trial involved
2,222 non-cycling cows in the Waikato, from 12 herds averaging 510 head that were due to begin mating in early October. Non-cyclers treated with a CIDR® program had significantly higher first service conception rates than untreated non-cyclers and non-cyclers treated with the OvSynch program. CIDR® treatment of non-cyclers has a positive return on investment, and the nett profit increases with higher milk price payouts. This is mainly because a CIDR® program advances the conception date of non-cyclers by 10-16 days, meaning they calve earlier next season, delivering a benefit between $80-$128/ cow before treatment and feed costs. Non-cyclers are best prevented by proactive management of body condition, feed, calving spread and other factors that impact fertility. However, those changes need to be made well
Zoetis New Zealand Limited. Tel: 0800 ZOETIS (963 847). CIDR is a registered trademark of InterAg. ACVM No. A4559.
in advance of mating start date, and some of those factors are difficult to control every year. When you need to treat non-cyclers, evidence shows that CIDR® treatment of non-cyclers before the planned start of mating is the most cost effective option. CIDR® treatment buys you 10-16 days extra milk for next season, improves calving spread and is cost effective even in a low pay-out year. Talk to your vet early about planning your repro programme for this season. For more information download the CIDR® Return on Investment Calculator from the App Store or Google Play to see what this means for your farm.
DAIRY NEWS AUGUST 14, 2018
MANAGEMENT // 29
Where valued staff call the shots peterb@ruralnews.co.nz
DAIRYNZ DIRECTOR Ben Allomes believes every day should be worker appreciation day. He was commenting on Monday, August 6 being designated ‘farm worker appreciation day’. The idea, seemingly from the US, caught on with DairyNZ which suggested workers could be offered, say, a special lunch or an early knock-off that day. Allomes admits he did nothing in particular for his staff that day -- no
muffins in the milking shed at 5am -- but he is one of many farmers well known for good, innovative employment practices. He likes the idea of the day as a prompt for employers to stop and check whether they appreciate and value their staff. Allomes and his wife Nicky take an unconventional but effective approach to being employers -- and it works, he says. “We have the philosophy that our team are our customers and that our whole staffing structure is customerled. So the team takes the lead on how they want to be rostered and organised.
THANKS FOR JOB WELL DONE DAIRYNZ’S PEOPLE team manager Jane Muir says any employee, in no matter what business, will feel more valued when they are paid fairly and have good work-life balance; “and quite simply when their boss says ‘thank you’ for a job well done.” Recent statistics show 36,000 people working on NZ dairy
farms: about 50% employees, 45% business owners including farm owners, sharemilkers and contract milkers, and the remainder unpaid family members. Muir says employers should take active interest in their staff and know what appeals to them and motivates them.
“I know how many hours I need [worked] on the farm and then it’s up to the team to work out who does what hours, when, and how many different people we need to make that work.” Allomes says some people want to work 45-50 hours out of choice while others who can’t or don’t want to work longer hours are quite happy to fill in the gaps. He points out that NZ has fairly low unemployment but notably high underemployment. “Many people in our community, for whatever reasons, can’t work full time but want more part time opportunities.... On farms we have an amazing opportunity to package our jobs up in much smaller ‘bites’ that can make jobs more available.” Employers today must pay some heed to the needs and aspirations of young people, he says. They want to feel part of a business and have some responsibility. So he has stripped out the standard hierarchical method and moved to a system where everybody has direct responsibility for some part of the farm business -- more experienced staff have greater responsibility and
Nicky and Ben Allomes
newer staff less. “A farm assistant can still be responsible, but it’s just that their area is quite narrow. They can be the boss in the area they are responsible for and the others in the team answer to them,” he says. “It may be as simple as being in charge of the water system, or power or mating -- something narrow but also with important implications for the farm. As they gain more experi-
ence the breadth of their responsibilities increases.” Allomes says this means that from day one even the most junior person is a boss and they like it and so do all the staff. But he cautions that in this busy time of the year on dairy farms, this should not be used as an excuse for slack care of staff. “Adequate staffing structures go hand in hand with profitability,” he says.
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Q: What publication did you see this promotion in? Answer: .......................................................................................................................... Name: .............................................................................................................................. Address: ........................................................................................................................... ......................................................................................................................................... ...................................................................... Phone: ...................................................... Email: ............................................................................................................................... Terms and Conditions: Information on how to enter the competition forms part of these terms and conditions. Entry in to the Win a Suzuki Kingquad competition is deemed acceptance of these terms and conditions. Entry is open to all New Zealand residents except for employees of Rural News Group and their immediate family. Each entrant may enter more than once. To be valid, each entry must contain the correct answers as determined by the Rural News Group. The competition opens on Monday August 6, 2018 and closes Friday November 2, 2018 at 11pm. The prize winner will be drawn on Monday November 5, 2018 and will be contacted by phone and email by Wednesday November 7, 2018. The winner will be announced via email by Friday November 9, 2018.The promoter’s decision is final and no correspondence will be entered in to. By accepting the prize, the prize winner consents to the promoter using his/her details, photographs and recording of the prize acceptance for promotional and media publicity purposes. There is one prize of a Suzuki Kingquad 500 XE ATV. The winner may be required to pick up their prize from their nearest Suzuki dealer. The prize is valued at $16,995. The prize is not transferable or redeemable for cash. All insurance and any on-road costs are at the winner’s expense. All entries become the property of the promoter. The promoter is Rural News Group, First Floor, Bayleys Building, 29 Northcroft St, Takapuna, Auckland 0622
DAIRY NEWS AUGUST 14, 2018
MANAGEMENT // 31
Traditional path to farm ownership LOUISE HANLON
MIKE AND Debi Fichtl, of South Waikato, believe farm ownership is still an admirable, and achievable aim. A smaller-herd farm was the affordable option for the them and they now farm in spectacular countryside dotted with volcanic outcrops at Wharepapa South, near Te Awamutu. They have owned their 52ha farm, milking 131 crossbred cows, for six seasons, working hard to progress their farming careers the traditional way. Fichtl didn’t start out farming; he had a variety of different roles -- forestry, kiwifruit and working for a silage contractor whose son encouraged him to try dairy farming. “An ad for a farm worker came up in Taupo and I went for it,” says Fichtl. “It was on a 400ha conversion and I stayed there three years. That was a wake-up call, my first real introduction to farming.” Debi didn’t start off farming either. “I trained as a radiation therapist and practised for 14 years before having our boys. I then joined Mike on farm.” The Fichtls have followed the traditional path -- farm assistant, management, 50:50 sharemilking and finally farm ownership. “Our parents weren’t able to help us into a farm,” says Fichtl. “So the only option we had was to do it the traditional way, which we did.” The encouragement of one their bosses was crucial. “The person who influenced me to go 50:50 was Malcolm Ellis at Ngutunui,” says Fichtl. “I was on his farm for two years and he liked to see people move, so we went 50:50 after that. Right from when we got there he was pushing, schooling us to go 50:50. He mentored us through there.” “We bought two houses in Hamilton to increase our equity and then sold them to buy our first herd,”
says Debi. “I still think the goal should be farm ownership,” says Fichtl. “Not everyone will get there. I suppose a lot of people are happy to be a big sharemilker and then exit the industry. But if you are talking about a career, then owning your own farm is the pinnacle. It is an achievement to come through the ranks, and smaller herds are the only way some people will get there.” Money can be made out of a smaller herd farm, he says. “A smaller herd, about 350 cows, can still be profitable for a husband and wife team with a worker. You have to be creative; perhaps one of the partners has a good job in town, and the other partner is on the farm, and then they can afford a worker and will get ahead a bit quicker. “There are many ways to farm ownership. Unless you are on a very big 50:50 job it is difficult to go to a 400-500 cow farm, so we still need stepping stones. This farm is our stepping stone.” Their off-farm work is an essential way of generating extra income. “For the past three years I have teat sealed for local vets, reared calves at AgResearch Tokanui and had an AB run,” says Debi. “That takes care of eight months of the year and we both relief milk alongside our own farm duties.” The Fichtls have regularly attended SMASH (Smaller Milk and Supply Herds) events for several years. “You need to take time off the farm: it is running a business,” says Fichtl. “If you are having a problem, say with heifer grazing or what to plant, and something comes up, you should go along. Farming is ever-changing and you need to keep up. “We first came to SMASH during our first year on this farm, and got good information there. Sometimes information can be muddled at industry events, but coming through SMASH it is pretty direct; they choose
their speakers well. It is relevant to either what is happening internationally or on-farm. “For example, when we came to one of their recent field days there was so much information,
Mike Fichtl on his South Waikato farm.
we were thinking ‘wow’ there was a lot of new stuff, and it all made you really think. • Louise Hanlon is a member of the Smaller Milk and Supply Herds (SMASH) national committee.
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DAIRY NEWS AUGUST 14, 2018
32 // ANIMAL HEALTH
Raising calves to full potential In a three-part series, veterinarian Olivia Sutton, Vetlife Omaru, looks at optimising future heifers with calf rearing. THE BUSYNESS of
calving time, with cows calving, mastitis, down cows and sometimes managing new workers,
can make it easy to overlook those tiny critters that aren’t yet producing you any money. But the best genet-
ics in your herd are sitting right there, so try to raise them to their full potential. What is the use of all those early morn-
For calves to reach their full potential, keep them hitting their daily growth rates. Inset: Olivia Sutton
ings in October staring at rub marks if you weren’t going to get some genetic gain. For our calves to reach their potential we need to keep them hitting their daily growth rates, and have them well grown in height and weight before the planned start of mating. A heifer needs to reach puberty to ensure she is cycling before we can even think of mating her, and puberty is reached at about 50% of mature adult live weight. The following will cause calves born this season to fail to reach their growth targets before their planned start of mating in 14 months. 1. Calf was born late in the season: a calf born on day one of calving and one born in week 6 both have the bull put out on the same day. 2. Disease 3. Failure of passive transfer (FPT): in this condition calves don’t get enough colostrum 4. Parasitism
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5. Nutrition Today, we will look focus on the first two management aspects that impact their future growth. Next issue, we will delve deeper into preventing these issues looking into colostrum management, nutrition and parasitism. Calves born late in the season Tackling this one involves working closely with your veterinarian to improve your 6-week incalf rate and conception rate. We want to maximise the heifer replacements born early in the season so that they can all have the same chance when the bull goes out. Those born later will need to have higher daily weight gains to ensure they catch up to the rest. Disease When a calf is suffering from disease, whether it is scours, pneumonia or even a navel infection, its energy is used for fighting this, not for growth. Most of the disease that we see is within the first 4
weeks of life, and we will discuss why this is in the next article. Prevention of disease is a balancing act between the calves having a healthy immune system (discussed in next article), and ensuring the environment is favourable to reduce stress and have a low contamination of the pathogens that can cause them sickness. The principles to achieve this are: 1. Do not overcrowd your pens a. Calves require a minimum of 1.5m2 per calf for first two weeks and 2.5-3m2 after 2. Good drainage 3. Adequate ventilation 4. Ensure all calves have water 5. Solid partitions between pens to decrease disease spread 6. If calves are going outside early ensure they have shelter available (adverse weather conditions cause them stress) 7. Ensure all feeders and utensils are disinfected daily 8. Keep a clean calf
trailer 9. Spray calf navels with a spirit-based iodine solution (products above 7% will dry out navels faster) a. Preferably spray them before they enter the calf trailer as this can be a contaminated environment 10. Monitor your calves for early signs of disease and if you suspect it, clean yourself and your gear before changing pens. The calf rearing process can be time concerning but rewarding when you get it right. Remember that one day the oldest cow in your herd will be the calf born this season, so it is never too late to make a difference. Brought to you by
DAIRY NEWS AUGUST 14, 2018
ANIMAL HEALTH // 33
Don’t let weight loss post-calving break down cows weight loss is a normal biological process and follows extensive mobilisation of the cows’ body reserves to supply vital nutrients (energy, protein and minerals) to support milk production. Unfortunately, as cows have been continually selected for higher production, they have simultaneously increased their risk of becoming ‘overcommitted’ in terms of meeting the demands of lactation. The comparison can be made; a modern dairy cow which is bred to perform is not too dissimilar to a high performance sports car. Both are capable of extraordinary performances in their own right, but just as capable of breaking down if not managed appropriately or supplied with the correct fuel! Examples of this ‘break down’ in cattle are the two ‘metabolic diseases’ Subclinical Ketosis (SCK) and Clinical Ketosis (CK). These both arise when the cow has not successfully adapted to the negative energy balance of early lactation. CK is relatively easy to recognise (smelly breath (sweet – acetone), rapid weight loss, anorexia, milk drop, neurological signs (aggression, licking bars, stupor). On the other hand, as the name suggests SCK does not have any obvious signs and therefore
‘quietly’ goes unnoticed ultimately costing farmers significantly. SCK while invisible has been linked with the following. ■■ Increased chance of suffering a displaced abomasum (4th chamber of the forestomach). ■■ Increased chance of developing metritis (uterine infection) if SCK occurred in week 1 of lactation. ■■ Increased chance of developing CK (clinical signs described above). ■■ Increased chance of having subclinical metritis 28 days after calving. ■■ Increased duration and severity of mastitis. ■■ 180% increased chance of being culled within the first two months of lactation. ■■ Increased chance of failing to cycle after two months of lactation. ■■ Reduced chance of becoming pregnant at first AI. All of these factors combined together very quickly translate into significant economic losses and have been estimated
to amount to approximately $400 per individual case! The good news is, there are relatively inexpensive ‘cow-side’ testing methods that can identify if SCK is an issue. Testing should be done within 14 days of calving on a minimum of 10 cows. From the results obtained management decisions around amount of feed offered, types of feed offered and milking frequency, can
be made. Most herds respond extremely well to remedial changes in management following identification of this relatively common early season metabolic disease. Please note, while the impact of this relatively common but ‘invisible’ disease seems daunting, the actual detection and treatment of this disease (largely management based) is not overly ‘resource hungry’. So, it makes very good sense to
go looking if you believe there could be an issue. If you suspect you are suffering the ill-effects of SCK (as listed in the bullet points above) contact your farm advisor, nutritionist or veterinarian to discuss further. • Greg Jarratt is a vet and director of Matamata Veterinary Service. This article is brought to you by A high-performing dairy cow can break down if not managed properly.
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DAIRY NEWS AUGUST 14, 2018
34 // MACHINERY & PRODUCTS
Old, grey and loved by all MARK DANIEL markd@ruralnews.co.nz
MOST PEOPLE who
Chris and Susan Wollerton with their MF2615 tractor.
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know today; the latter was made from 1964 to 1975. Interesting then, that although these tractors have been out of production for 62 and 43 years respectively, many thousands are still earning their keep. The MF2600 series tractors from global giant AGCO looks to capitalise on this heritage and the
Woolerton, Taupiri, in the Waikato dairylands. They grew up on farms and have been in their present place for 15 years. Chris says he has always had an affinity with the MF brand. They set out to look for a utility tractor 14 months ago after years of running quads. Says Susan, “After
“It’s easy to drive, with power steering and a tight turning circle, it runs on the smell of an oily rag, and is light and nimble, so doesn’t mark the ground in wet weather.” enthusiasm of its customers in a modern equivalent of the old-timers. They come in four models designated 2605, 2615, 2625 and 2635, with engines producing 39, 48, 63 and 75hp respectively. Power is derived from a Simpson engine built under licence to Perkins since 1951; the two smaller units have 3 cylinders and 2500cc and the larger units 4 cylinders and 3600cc; the 2635 also has a turbocharger. The well-proven engine is mated to a transmission with 8 forward and 2 reverse speeds (4 speeds/Hi-Lo) that in turn feeds a HD transaxle that means you’ve just about recreated a MF135. Open centre hydraulics with twin-pumps can deliver a maximum output of 62L that is fed to one or two rear remotes, while the 3-pt linkage is good for around 2 tonnes. Add to this, mechanically selected 4WD and diff lock, independent 540 PTO and wet disc brakes, and this tractor is a little honey. One couple driving such are Chris and Susan
three years the quads were knackered and landing us with service bills of $1500 a year”. They were also mindful of health and safety obligations to their workers and themselves, so wanted a more suitable vehicle. Twelve months on, with 200 hours on the clock, the little 2615 is a hit with everyone on the farm. It’s used every day and gets called on to mount the Carryall tray to move milk for calves and carry feed, tow a meal trailer and a Calfeteria, and moving the effluent irrigators. Chris Woolerton says “it’s easy to drive, with power steering and a tight turning circle, it runs on the smell of an oily rag, and is light and nimble, so doesn’t mark the ground in wet weather.” Susan sums things up as we leave: “Everybody loves it because it just works, and it makes you smile. “Add to that, it only costs the same sort of money as a mid-spec sideby-side, and I expect to see my grandchildren still driving it in 20 years”.
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DAIRY NEWS AUGUST 14, 2018
MACHINERY & PRODUCTS // 35
Holden goes easy on fuel MARK DANIEL markd@ruralnews.co.nz
HOLDEN HAS released details of the first-ever diesel Commodore, launching it alongside the first diesel-powered version of the new medium-size SUV, the Equinox. The company believes the diesel Commodore, available in a liftback form or as a sport wagon, will find favour with fleet operators who want a large, comfortable vehicle with allround drivability.
Their engines are rated at 400Nm torque from 1750rpm driving through eight-speed automatic transmission. Fuel efficiency compared to the 2.0L petrol Commodore LT Liftback sees the diesel win by almost 2L/100km (5.5L versus 7.4L). The Equinox diesel is a more family-orientated proposition in a threemodel range, all powered by a 1.6L engine mated to a six-speed automatic transmission. Like the diesel Commodore, the Equinox has fuel-saving auto stop/start technology as standard, and many pas-
charging, front and rear seat heating and a Bose premium audio system. The top-spec LTZ-V ups the ante with a huge twopanel panoramic sunroof,
sive and active safety aids which contribute to its five-star
Holden Equinox
ANCAP safety rating. The Equinox line-up starts at the LT, moves to the LTZ and through to the range-topping LTZ-V, the former as a two-wheel drive, whereas the LTZ and LTZ-V are both all-wheel drive. The Equinox diesel models replicate their petrol siblings in specifications, including heated front seats, built-in sat-nav, remote engine start
Holden expects its diesel Commodore range to appeal to fleet operators.
and front park assist as standard, plus one-touch folding rear seats and four USB charge points throughout the vehicle. The LTZ steps up specification with 19” alloys, LED headlamps and tail lamps, hands-free power tailgate, rain-sensing wipers, wireless phone
power passenger seat, ventilated front seats and heated steering wheel. The Equinox and Commodore come with the distributor’s Complete Care package which includes three years free certified servicing, three years roadside assistance and three years warranty.
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DAIRY NEWS AUGUST 14, 2018
36 // MACHINERY & PRODUCTS
Canadians are good at offroad vehicles MARK DANIEL markd@ruralnews.co.nz
WITH A history that
dates back 75 years to its formation, and 20 years since it introduced its first quad, the Canadian company BRP (Bombardier Recreational Products) knows off-road vehicles. In New Zealand we readily recognise the brand Can Am, with model names such as Outlander, Defender and Maverick, so an offer to ride a Maverick for a week in the Waikato had us keen to see what it was all about. Our ride was an Outlander 570 PRO, a high-spec machine offering plenty of grunt,
go and carrying and towing capacity. That grunt is delivered by a V-twin, liquid-cooled Rotax engine, sporting 4 valves per cylinder, fuel injection and 48hp on tap. Offering smooth power delivery from tick-over and throughout the rev range, this engine was never wanting during solo riding, carrying small square bales or towing a meal trailer. Interestingly, the Outlander is supplied with a speed-limiting safety key, limiting top speed to 40km/h but with maximum engine torque, so ideal for novices or onfarm speed control, while a performance key allows maximum output and speed at all times.
BRP profile ❱❱ Founded in Canada in 1942 ❱❱ Factories in Canada, USA, Mexico, Finland, Austria ❱❱ 10,000+ employees ❱❱ 40%+ of output is quads or side-bysides ❱❱ 33% of production exported ❱❱ 4% of total sales revenue spent on R&D. Towing and carrying capacity, important onfarm, particularly with livestock farmers, gives a useful 590kg at the tow bar and a combined rack total of 163kg -- 54kgs up front and 109kg at the rear. Mated to the engine is a CVT drive system that offers smooth, progressive
build-up of speed, is very quiet, and importantly offers engine braking on downhill sections when the throttle is released. Suspension takes the form of a double A-arm set-up at the front, offering 230mm of travel, whereas at the rear, a clever torsional trailing arm layout is
Can Am Outlander
fully independent, with 220mm travel and five adjustable pre-load settings. This latter feature, dubbed TTI, is claimed to eliminate tyre scrubbing caused by changes in camber angles as the suspension works; in practice this means the suspension and wheels move straight up and down as terrain changes. During our test, we
SEE FURTHER ON NIGHT DRIVES DRIVING AT night on twisting rural
highways and byways in New Zealand, it isn’t too hard to ‘out-drive’ the light beam from ordinary headlights. Getting more light from original headlamps is a great way to improve night vision and raise safety on the road, so fitting Narva’s new Plus 150 globes is a quick and easy way to upgrade. These offer 150% more light volume than a standard globe, and a longer beam penetration that extends forward visibility by up to 60m.
And the ‘whiter’ light output (3700°) more closely resembles daylight, helping reduce driver eye fatigue for improved night vision and added safety. The lights use the same amount of power and generate not more heat, meaning they can safely be used in polycarbonate headlamp assemblies. E-marked, ADR-approved and street legal, the Plus150 globes suit all sorts of autos -- passenger cars, SUVs and commercials -- in 12V H4 (60/55W) and 12V H7 (55W) configurations.
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encountered paved rural roads, metalled tracks, farm races and sticky paddocks, but can confirm that the ride quality was excellent, remaining neutral always, probably helped as well by a beefy anti-roll bar. Stopping the khaki green machine -- it weighs 320kg -- was never an issue, with a twindisc set up at the front end and a single disc at the rear, combining to deliver good stopping power in a straight and uncomplicated manner. Hitting difficult terrain was also easy with a choice of 2 or 4WD select via handlebar switch, and very sticky situations taken in the machine’s stride with the ViscoLok QE auto locking differential up front. Contact with the ground comes from aggressively-treaded 25-inch tyres mounted on 12-inch cast aluminium wheel rims, said to reduce weight, whilst improving
durability. The electrically actuated DPS power steering system has three modes, all offering increased assistance at low speed and diminishing as speed increases. Heavy-duty front and rear bumper bars take care of day-to-day knocks from immoveable objects, a heavy-duty seat cover keeps thing tidy, and highgrade plastics make the machine easy to clean and durable. Given that information is the key to most things, a multi-function digital display gives clear visibility of speed, engine revs, odometer, time, fuel, gear selection and the 4WD status. Add to this a useful, watertight storage bin of 12 litres under the rear rack and pre-wiring for retro-fitting of a winch, and the Can-Am Outlander looks a useful package well worth a closer look.
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DAIRY NEWS AUGUST 14, 2018
TRACTORS & MACHINERY // 37
Cultivator suits tractors 75-130hp FOLLOWING THE suc-
cess of the Kuhn Cultimer L with three rows of tines, the company has launched the Cultimer M 300 for tractors of 75 to 135hp. The new ‘M’ version has two rows of tines and a fixed 3m working width, making it suitable for smaller tractors and operations. A multi-purpose machine for shallow, medium and deep stubble cultivation, the M300
derives its versatility from the diversity of its wear parts that comprise 480mm fins and 80mm or 50mm shares. The NSM tine, with double springs and 600kg share pressure, ensures good penetration in difficult conditions, while a traction bolt safety tine version is also available for stone-free soil, with a 3000kg share pressure. Said to be quick and easy to adjust, the implement’s working depth
and roller can be adjusted mechanically using spacers or hydraulically from the cab. The levelling discs can also be centrally adjusted. To adapt to light soils
Kuhn Cultimer M 300
and dry conditions, the Cultimer M 300 can alternatively be equipped with levelling blades instead of levelling discs, or a wide range of rollers. www.kuhn.co.nz
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WELL KNOWN in Europe and the UK, Welsh
trailer manufacturer Ifor Williams, is also building a reputation in New Zealand with distributors in both islands. Set up in in Corwen, North Wales in 1958, the company is this year celebrating its 60th birthday but more importantly its 750,000th trailer from its production lines. It employs 500 people at its original Corwen site and three other facilities in the region; 30% of production is exported to Russia, Japan, Africa, Australia and NZ. The company makes 600-700 trailers each week -- an extensive range for livestock, general purpose, tipping, plant, flat-bed, car-transport, box vans and horse floats; about 1000 variants make up the offering. All units are fitted with beam axles and leaf spring suspension layouts, for carrying ability and durability; the company says it offers back-up for all its products regardless of age. Ifor Williams also makes specialised and customisable trailers for transport, notably for shipping rally cars. For example, the rallying specialist M-Sport, which runs the Ford World Rally Team, moves its cars in Ifor Williams-supplied Transporta Range trailers. Towed by 28 tonne trucks, the trailers are used to ship cars and spare parts to all parts of Europe, e.g. testing in the Arctic Circle and The Rally of Corsica in the Mediterranean.
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DAIRY NEWS AUGUST 14, 2018
38 // TRACTORS & MACHINERY
Valtra does it all MARK DANIEL markd@ruralnews.co.nz
GRAEME SAVILL’S
JD TRACTORS HIT 100 NOT OUT A CENTENARY is special for any business; this time its the global giant John Deere, founded in 1918 when it bought the Waterloo Gasoline Engine Company, Waterloo, Iowa. By then Deere and Co had existed for about 70 years, making cultivation and harvesting equipment which even in 1913 had sales of US$30 million (US$750 million at today’s prices). With mechanised tractors just starting to gain interest, Deere and Co initially thought about acquisition, but in 1912 developed its own ‘tractor plow’, and set an initial budget of US$6000 to complete the task. Tractor makers at that time sold 14,000 units in 1913, rising to 63,000 units in 1917. Then two of JD’s leading
designers, Charles Melvin and Joseph Dain, died, which stalled the launch of the company’s tractor. So it bought the Waterloo Gasoline Engine Co, in Iowa, for US$2.1 million, hence the arrival of the iconic green, yellow and red Waterloo Boy Tractor sold in the same guise until 1923. The Waterloo Boy brand was superceded by the John Deere Model D then many other models. Today, Waterloo is still the home of green and yellow tractors, such as 7R, 8R and 9R tractors in wheeled and track-laying configurations. To mark the centenary, a Waterloo Boy is displayed at the Smithsonian National Museum of American History (pictured above). – Mark Daniel
DRAINAGE AND SOIL AERATION PAY BIG DIVIDENDS Don’t put good fertiliser on compacted soil which can’t absorb it. If your soil can’t support 15cm root growth and good worm population check for compaction. You could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover?
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Valtra T174 has made difference to his Bay of Plenty forestry contracting business since arriving in January and is handy on his dairy farm. Made in Finland, where forestry is a major earner, the 190hp Valtra T174 has proven ideal because its heavy-duty rear transaxle can tow trailers loaded with up to 15 tonnes of logs. Savill has also attached two winches to haul logs: the 180m front unit is the main hauling winch, and the 500m rear winch is used to drag the main winch out to hook onto logs. Both units are PTO
Valtra T174
driven and can move 30 tonne items. Savill says he is likely to fit a 6-tonne log hoist to load trailers quickly. Besides hauling timber, the T174 is used to power a MeriCrusher mulcher that clears sites when log-
ging is finished The Valtra also helped out over easter period with silage duties on the 260ha, 250-cow dairy farm at Katikati, run by Savill’s daughter and son-in-law. Graeme points out the 174 has a particularly com-
fortable cab that can be optioned to a customer’s own preference including a 180-degree swivel seat, armrest, air conditioning with automatic climate control, mechanical cab suspension and two safety cameras.
All-purpose machines MARK DANIEL markd@ruralnews.co.nz
MASSEY FERGUSON has launched three tractors in its new MF 6700 Global Series, soon to arrive in the Australian and New Zealand markets. With power up to 132hp, these are the largest, most powerful models in MF’s Global Series -- sturdy, straightforward, all-purpose tractors in three variants in the 70-130hp sector. The MF 6700 Series has a 2.5m wheelbase and 5.2t linkage capacity, making them ideal loader tractors capable of handling heavy loads; they suit livestock and mixed farming, or could serve as a second or third main tractor on arable farms. Power comes from an AGCO Power 4.4L, four-cylinder Tier 2 mechanical injection engine, which enables low cost operation and maintenance, excellent power and torque, and low maintenance. All models have a 12 x 12 synchronised mechanical transmission, with six synchronised gears in two ranges and a top speed of 40 km/h. Direction changes are made simply using the standard power shuttle, providing fingertip forward/reverse shifts without using the clutch as well as a button on the gear lever for clutch-less shifting on the go. In the paddock the gearbox has seven gears in the important 4-12km/h field working range, and a practical overlap of speeds to ensure it is possible to pull away with a laden trailer without the need to change ranges. A high-pressure gear pump sup-
plies 57L/min hydraulic flow for the rear linkage, with a second 41L/min pump dedicated to the auxiliary spool valves. A separate pump delivers 27L/ min for auxiliary circuits including the steering, 4WD, diff-lock engagement and PTO control. When extra flow is required, perhaps when using a frontloader, the primary and secondary pumps can combine their flows to provide 98L/ min to the auxiliary system. Two double acting spool valves with float are fitted as standard and a third spool with flow divider is optional. The three-point linkage has a maximum lift capacity of 5200kg, using linkage arm sensors to achieve accurate draft and position control through Massey Ferguson’s electronic hitch control (ELC) system. A choice of three PTO speeds (540/540E/1000 rpm) is standard, with engagement via independent PTO (IPTO) multi-disc clutch engaged electro-hydraulically to ease driveline stresses by taking up the drive gradually. In the cab, controls are grouped
logically, with the right-hand console housing the throttle and spool valve controls, while a small ‘mouse-like’ control fits into the operator’s hand to control the electronic linkage. At the rear, a range of sockets are provided to power auxiliary control boxes and equipment. The operator’s dashboard presents a mix of analogue and digital displays, showing all essential information including a performance monitor to provide information on work rates and area worked, as well as advanced diagnostic capabilities. A degree of automation to make life easier, includes electro-hydraulic activation of the differential lock and 4WD. To complete the package, a range of frontloaders, including the MF 900X and MF Professional series loader ranges, are standard with mechanical self-levelling, and a range of non-self-levelling loaders are also available for New Zealand, all with a choice of lift capacities and reach, and control via the integrated Massey Ferguson joystick.
SILLY COW.
IT HAPPENS MORE OFTEN THAN YOU’D THINK. When you’ve been a rural insurer for as long as we have, you’ve seen most things before. Which is why at FMG, we recommend Liability cover* that protects you against damage to other people’s property – like when your stock gets onto public roads and causes chaos. It’s the kind of advice that really makes a difference in the country. If you’d like to know more about it, go to fmg.co.nz. Or better still, call us directly on 0800 366 466. *See fmg.co.nz for product terms & conditions
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It’s Vera’s Milking System When Vera put the new DeLaval VMS™ V300 to work for her, the smooth, fast attachment made possible by the DeLaval InSight™ allowed her to increase production whilst delivering healthier, calmer cows. Visit DeLaval.com to hear more from Vera about how she made the new VMS V300 her Milking System, and discover why you should make it yours too.
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DeLaval VMS V300 ™