Fonterra farmers say DIRA has done its dash. PAGE 4
TRADE DEAL EU chief optimistic PAGE 10
MILK QUALITY
Cold keeps bugs away PAGE 25
FEBRUARY 26, 2019 ISSUE 417 // www.dairynews.co.nz
FIRES FORCE EARLY DRY-OFF “The infrastructure’s so damaged that we can’t be walking cows to the shed every day and trying to repair the farm at the same time,” – Michael Shearer, Tasman sharemilker. PAGE 5
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DAIRY NEWS FEBRUARY 26, 2019
NEWS // 3
Endorse M.bovis levy or pay more NIGEL MALTHUS
Milk plant nearing completion. PG.08
Saved by the sun. PG.20
A cutter for all surfaces. PG.32
NEWS ������������������������������������������������������3-15 OPINION ���������������������������������������������� 16-17 AGRIBUSINESS ������������������������������18-19 MANAGEMENT ������������������������������ 20-22 ANIMAL HEALTH �������������������������� 23-24 MILK COOLING ������������������������������� 25-31 MACHINERY & PRODUCTS �������������������������������������� 32-34
DAIRY FARMERS could end up paying more for the Mycoplasma bovis eradication effort if they do not endorse the proposed Biosecurity levy. The proposed levy would keep them ‘a seat at the table’ to have a say in managing the continuing response. Those are the key messages dairy farmers are hearing at DairyNZ consultation meetings nationwide; they are asked to endorse a levy of up to 3.9c/kgMS under the Government Industry Agreement for Biosecurity Readiness and Response (GIA). Otherwise, the Ministry for
Primary Industries would implement a levy under the Biosecurity Act rather than the GIA and the amount and payback period would be at their discretion. “That’s certainly what we’ve been advised by the Government,” DairyNZ chief executive Tim Mackle said after a meeting at Darfield last week. “The general feeling of those who turn up... is that they now better understand the issue and what’s being asked. It’s not about whether
or not you want to pay it, it’s how you want to go about paying it.” The consultation period ends on February 28. Farmers are asked to vote either in writing or online, with the results to be collated on March 8. DairyNZ expects to confirm its approach with MPI on March 29 and the levy could take effect by June 1. Asked if the farmers’ vote would be binding, Mackle said it would be “in the sense that if the minister is satisfied there’s enough support, then yes”. “But we’re 100% owned by farmers so if farmers aren’t happy [to see this enacted] then we need to change it.” Some farmers are unhappy with the 94% : 6% split decided between dairy and beef but Mackle said a review clause built into the operational agreement could see it change.
DairyNZ board member Colin Glass told the Darfield meeting that a biosecurity levy is already in place under the GIA, which DairyNZ signed up to last year. It is now set at a maximum of 0.26c/kgMS -- appropriate for a “small scale foot and mouth incursion” -- but has not yet been incurred.
The GIA also gives a seat at the table with Government in managing response, said Glass. “The key point is that without GIA the industry has no involvement and no governance role at all in handling biosecurity incursions and the Government can levy whatever it likes.” Glass said the DairyNZ board isn’t happy with the dairy/ beef split but it is justifiable because of the disease’s economic impact on the dairy sector. Eradication
would not have been pursued had only beef been affected. Dairy was effectively asking
beef farms to depopulate “for us,” said Glass. Farmers attending the Darfield meeting said that if MPI had been doing its job in the first place the disease incursion would not have happened. Glass said DairyNZ is “absolutely clear” there has to be a review into how it was handled.
DairyNZ chief executive Tim Mackle takes questions from farmers in Darfield last week.
DAIRY NEWS FEBRUARY 26, 2019
4 // NEWS
DIRA has done its dash SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA FARMERS says
the Dairy Industry Restructuring Act 2001 (DIRA) has achieved its purpose. In its submission to the DIRA review, the Fonterra Shareholders Council says it’s time move forward with “a new Dairy Industry Act”. “The status quo will not suffice. The New Zealand dairy industry no longer needs a ‘Restructuring’ Act - or an Act that focuses on Fonterra alone, if the Government is looking to shape the entire industry for the future,” the council says. The submission, signed by council chairman Duncan Coull, wants the open entry provisions of DIRA to go. It also wants an end to access to regulated milk by export processors. Goodman Fielder should not be entitled to regulated price milk for its export products and there needs to be a clear pathway to de-regulation, the council says. Fonterra farmers point out that DIRA enabled New Zealand’s
STATUS QUO NOT GOOD FONTERRA FARMERS say DIRA incentivises inefficient entry by large processors. “Whilst establishing a plant requires capital and longterm investment, and businesses seek to generate sufficient returns to recoup that investment, the reality is that the majority of processors are backed by foreign capital and large global businesses,” the council says. The farmers say it’s time to shift the narrative and focus away from today and the past, from Fonterra alone and its dominance, to the wider industry, the future and value creation for New Zealand – “for our people, communities, land and economy”. “The status quo will not suffice; DIRA needs to become a dairy industry Act. When considering the options for change, the council encourages MPI and the Government to be ‘NZ Inc’ focused, to ensure NZ reaps the rewards of its dairy industry; and be future focused: don’t be constrained by what exists today, anticipate future trends and advancements.”
dairy industry to evolve by facilitating the merger of Kiwi Cooperative Dairies and NZ Dairy Group. “That, together with the end of statutory control of export marketing by the NZ Dairy Board, has contributed to a competitive domestic market and has enabled the merged entity (Fonterra) to compete strongly in international markets and as a result make a
significant contribution to the economy. “In 2019 a majority of NZ’s dairy farmers have choices as to who they supply their milk to and the public has wide choice in the dairy products they buy. “It is imperative to now refresh DIRA’s purpose, recognising the current environment but with the future top of mind.” They want the industry to
regions increasingly rely on the focus on the future. The global environment is dairy industry for its economic changing at a rapid pace and is and social contribution. The council warns that if overimpacted by a wide range of factors; domestic environment also capacity led to plant closures the impact on some regional commuis vastly different from 2001. What hasn’t changed is that nities would be hefty. A Ministry of Prisustainable dairy mary Industries disfarming has a critcussion document ical role to play in on DIRA notes flatNZ’s future prostening milk supply perity and economic growth and anticiand social wellbepates more intense ing. competition for The council farmers’ milk. says DIRA needs to The council says evolve in response Duncan Coull the dairy industry is to changes in the domestic market, where milk now in a new phase. “There is volumes have plateaued; limited an existing footprint of stainless land remains that is suitable for steel processing capacity with conversion to environmentally limited potential to grow the sustainable dairying and com- raw milk pool to flow through peting processors have emerged [the plant]. “More inefficient capacin number since 2001. Processors compete vig- ity [through additional new orously for farmers’ milk in entrants] will lead to heightened Waikato, Canterbury and South- risk of stranded assets, to the land – Fonterra is not dominant; detriment of the entire indusand a marked reduction has try and [the NZ] economy; this occurred in Fonterra’s national could [adversely affect] rural communities with lower milk market share. There is also significant risk volumes and / or older, smaller of industry over-capacity, and processing facilities.”
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ASB HAS set its first 2019-20 milk price forecast at a bullish $7/kgMS. This is after last week’s very modest 0.9% gain in the Global Dairy Trade price index. Senior rural economist Nathan Penny believes we are entering a new dairy price cycle. It will be more moderate than the previous ‘super cycle’ but more amplified than the recent price calm, he says. “The conditions for the start of a new cycle have begun to emerge,” he says. “Essentially those conditions
boil down to supply growth increasingly lagging behind demand growth, with little prospect of catch-up in the short term.” The bank also sees a possible upside to its forecast $6.25/kgMS for this season. Last week’s GDT result was the sixth consecutive gain, but nowhere near the hefty 6.7% increase at the last auction two weeks ago. The key product, whole milk powder (WMP), was up just 0.3% to an average price of US$3022/tonne. – Pam Tipa
DAIRY NEWS FEBRUARY 26, 2019
NEWS // 5
Fire-affected farmer forced to dry off NIGEL MALTHUS
THE SEASON is over for the only dairy farmer directly affected by the huge wildfire that blazed for several days in the hills southwest of Nelson. Sharemilker Michael Shearer runs 360 cows on a property in the Teapot Valley, west of the town of Brightwater. The fire broke out the day before Waitangi Day and grew to cover an estimated 2300ha of largely forestry land; hotspots were still being damped down two weeks later. It did not get onto Shearer’s farm but came right up to the tanker track on the boundary and could have spread further but for 25ha of firebreaks. He says the farm is now “a mess”. Pasture, fences, irrigation and water lines are damaged and he doesn’t expect to be able to milk again before next season. “A lot of it is unknown damage until you turn things on. It’s going to take till winter to get everything back in order.” Shearer is temporarily milking on the property of Brightwater farmers Bruce Ealam and his son Cameron, who he says had been “nothing short of amazing, helping us out”. The fire started on Tuesday February 5 in Pigeon Valley, a few km south of Shearer’s farm. Shearer said that by Thursday the fire was raging all around. With a state of emergency already declared, they moved his herd about 9pm across the Waimea River to a block leased by the Ealams. Then about midday on the Friday they moved again, to the Ealams’
Michael Shearer says drying off early means a production loss of about 40,000kgMS.
hop farm between Brightwater and Wakefield, where the cows could be milked. The property is a recent conversion from dairy to hops, with a still-workable dairy shed. But Shearer said he would probably dry the cows off and move back to his farm as soon as he had access. The growing regional drought which contributed to the fire meant the Ealams were on allocated water with little to spare and would soon be starting their hop harvest. “I don’t think we’ve got too many options,” he said. Drying off will mean the loss of about 3.5 months production or about 40,000kgMS. “The infrastructure’s so damaged -- laneway and paddock-wise -- that we can’t be walking them to the shed every day and trying to repair the farm at the same time. So it’ll just take the pressure off from walking them and it’ll be one less job to do.” How much of the firebreak
damage and production loss would be covered by insurance remained “up in the air,” said Shearer. He had received loads of baleage and hay from the convoys of donated feed trucked in from the south, and said the Ealams had also opened their silage for his cows. Fonterra had supplied him with some water. Shearer said drought had been the big problem for the region “and quickly that problem got forgotten”. The Thursday night evacuation was “the worst,” and his cows were “pretty spooked by the whole situation”. “On the Friday when we milked them it took a long time.” They had since settled into their temporary home. Shearer is an award-winning young farmer, as a winner or placegetter in a variety of trainee and farm management awards since 2012. He is now staying in Brightwater with his wife Cheryl and three children aged five, three and four months.
FIRES HAY Convoy organisers Barry HIll and Paule Crawford at the Richmond A&P Showgrounds with two truck and trailer loads of donated baleage for stock affected by the Tasman fire. The friends, from Ashburton and Geraldine, set up a Facebook page and were quickly swamped with offers of feed and trucks, eventually managing to get 12 truck and trailer loads from Canterbury up to Nelson. Counting the feed, donated time and labour, and road user charges and fuel for the convoy, Hill estimated the value of the effort at about $100,000.
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DAIRY NEWS FEBRUARY 26, 2019
6 // NEWS
Hoping rain will head-off drought NIGEL MALTHUS
FARMERS ACROSS
the top of the South Island are pinning their hopes on forecast rain to
ease a drought some say is shaping up as the worst since 2001. Pastures were tinderdry across the top of the South, contributing to the huge wildfire near Nelson.
Irrigators’ allocations are cut, townies are conserving water and travellers are getting ‘sorry’ notes about their unwashed rental cars. “It’s not yet an official
drought but it won’t be long before we’re starting to have those talks,” said Takaka dairy farmer and Golden Bay Federated Farmers president Wayne Langford.
Golden Bay Federated Farmers President Wayne Langford says the top-of-the-South drought is starting to bite.
Local farmers have already had one drought meeting with DairyNZ and another is scheduled for February 28. “We’re all hoping [for] rain before then. If [not] we won’t have seen rain all month,” said Langford. “That’s when pretty drastic decisions will be made; we’ll start talking about drying-off early.” But as Dairy News goes to print fronts are seen as possible from the west and tropical cyclone Oma could bring rain from the east.
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Golden Bay; we haven’t had one of those since July.” Amanda Tait, sharemilking 340 cows with her husband Richard just north of Takaka township, says they hope to keep milking “at the moment” but are expecting a huge loss of production. “There’s just no grass. I went walking around yesterday and it just shocks you; even the weeds are dying.” Tait said they had decided to let a worker
“It’s not yet an official drought but it won’t be long before we’re starting to have those talks.” – Wayne Langford
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Langford, from a longestablished Golden Bay farming family, milks 250 cows on his unirrigated 93ha a few km south of Takaka. The last rain it had was just 6mm in January. He uses a summer crop of lucerne as a way of “putting green in front of the cows” but even lucerne is struggling in the heat. Langford said most of the district’s dairy farmers are already on once-aday milking. The only farmer at the meeting still milking twice a day is on irrigated land but irrigation was close to shut-off as the Takaka River flows dwindled. Langford noted the district’s good spring, but even so the ground was only wet on top with nothing underneath. “The fortunate thing about our spring was we continued to get small rain events -- 20-25mm -almost weekly or more. But we didn’t get the 100 - 200mm rain common in
go, and she will go back to work to make ends meet. “We have to do something.” They were also culling their empties far earlier than usual. “We sent 25 cows away yesterday, so that’s pretty heartbreaking because we don’t send them till the end of the season. We don’t send them all in one go.” The Taits have some irrigated paddocks but they are just “keeping green” and not growing. “We’ve got 40ha irrigated but the council shut us down to 50% the other day so that’s dire.” Paddocks that haven’t responded well have been shut off to keep remaining water for the paddocks that appear to be doing OK. Their last rain was Christmas day “and that wasn’t really rain,” said Tait. Even with rain it will take at least a month for things to start growing again.
DAIRY NEWS FEBRUARY 26, 2019
NEWS // 7
OCD plant opening a big milestone SUDESH KISSUN sudeshk@ruralnews.co.nz
THE COUNTRY’S
second-largest dairy processor will showcase its newest factory to farmer suppliers on March 7. Open Country Dairy’s Horotiu plant has been producing milk powder since August last year. OCD chairman Laurie Margrain told Dairy News that the plant has been operating at full capacity since August. “On March 7 we will have an opportunity for our suppliers to see and have a look around the plant – their first opportunity to see where
their milk gets processed.” OCD, which exports to 60 countries, now owns four processing plants: Waharoa, Awarua, Wanganui and Horotiu. It is majority-owned by the Motueka agribusiness Talleys, the owners of meat company Affco. OCD’s new Horotiu plant is next to Affco’s meat processing plant and headquarters. Chief executive Steve Koekemoer said in the company’s January newsletter to milk suppliers that the new plant opening is a “big milestone”. He also cited as highlights the new division Open Country Brands and the launch of an organic programme.
“We also launched our 12-month rolling milk price forecast with 4 settlement periods payment system and our new annual fixed milk price scheme,” he told suppliers. “These have all been to ensure our competitiveness and to
add value to the business. “Most of these initiatives are still in their infancy but as we evolve as a business we will expect all our stakeholders to benefit from these changes and we will continue to innovate.”
The new OCD plant at Horotiu is next to a major freight hub being built by Ports of Auckland to transfer goods by rail to its port. Last year OCD was announced as the first major freight customer of the Waikato freight hub.
OCD will open the doors of its new Horotiu plant to suppliers on March 3.
Koekemoer noted the huge advantage of having their warehouse located between NZ’s two dominant ports -Auckland and Tauranga. “Strategically the new
Waikato hub will allow us to continue our export growth while lowering our costs and environmental footprint through greater use of rail,” said Koekemoer.
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OPEN COUNTRY Dairy recently exhibited at the week-long annual Gulfoods show in Dubai. It had two stands, one of them developing sales channels for its branded AwaRua Organics products OCD chief executive Steve Koekemoer attended the show and visited key clients in the Middle East. “The Middle East is an important export region for us and has become strategic over the years as we’ve diversified our product mix and markets,” he said.
DAIRY NEWS FEBRUARY 26, 2019
8 // NEWS
Geothermal milk plant nearing completion SUDESH KISSUN sudeshk@ruralnews.co.nz
NEW ZEALAND’S second Maori-
owned dairy plant project is on track to start producing in July. The $33 million plant in Kawerau is a joint venture: 11 Maori entities, including Poutama Trust. Between them they hold a 67% stake in the company and Cedenco Dairy Ltd, owned by Japanese company Imanaka holds 33%. Poutama Trust chief executive Richard Jones told Dairy News that export grade products like organic whole milk powder, milk protein concentrates and butter will be produced at the plant. Kawerau Dairy will process up to 30 million litres of milk in its first year; 12 farms will supply milk. “We expect the majority of farms supplying Kawerau Dairy in the initial start-up phase will have Maori ownership,” he says.
New Maori-owned dairy plant, Kawerau Dairy under construction.
The plant, located at the foot of Pūtauaki, a volcanic cone in the Te Moana o Toi region, will be geothermal powered. The combination of a focus on the people, land and customers will give Kawerau Dairy a point of difference and enable it to be a value-add niche producer rather than a commodity seller.
Jones says there’s a strong sense of pride and self-determination among the owners of the dairy plant. “There’s also a strong drive to create employment for their shareholders. Quality employment where there is opportunity for advancement is one of the main drivers for the owners.
“Also it’s not just about the factory being geothermal: our Kaitiaki Incentive programme also focuses on sustainability on the land.” Kawerau Dairy products will be exported mainly to Asia and the Americas; Imanaka’s NZ subsidiary Cedenco Dairy will also help market products.
SECOND PHASE KAWERAU DAIRY is already looking at expansion plans. Richard Jones says right from the beginning of the project it was always intended that it would be done in two stages. “We believe there are some emerging opportunities for a processor of our size to look at specialist milk types – sheep and goat and plantbased ‘milks’. We expect to be seriously considering further expansion of our drier facility within three years.” Jones expects Kawerau Dairy to be different from most other milk processing plants in NZ. “Its smallness, and the fact it will eventually consist of two driers processing cow, sheep, goat and plant based milks, will enable flexibility and adaptability “Flexibility and adaptability are key enablers in a fast changing world. They allow for innovation and disruption and the ability to move away from just being another commodity producer.”
DAIRY NEWS FEBRUARY 26, 2019
NEWS // 9
Creating value from loss streams
GOING CIRCULAR THE NZ AGBIZ model was commended at the 2018 NZI Sustainable Business Network Awards in the popular ‘going circular’ category. ‘Going circular’ refers to designing products to help create a circular economy in New
SUDESH KISSUN sudeshk@ruralnews.co.nz
NZAGBIZ IS a Hamil-
ton-based company whose business model has been circular since its inception in 2008. A Fonterra business unit, NZAgbiz manufactures livestock nutrition products using primarily Fonterra ingredients and has recently won a Commendation at the
lar economy’. Each year it gets assorted dairy products no good for human consumption and from this makes milk replacers for calves (Ancalf), pigs, sheep and goats. Ancalf is NZAgbiz’s biggest seller. Some cheese and butter loss streams are sold to pig farmers. “We take this material from Fonterra and other dairy manufacturing plants and re-work it into useful, high-quality
“By recycling dairy industry products we reduce the amount of material going to landfill and maximise the life of the dairy industry’s downgrade product.” prestigious 2018 NZI Sustainable Business Network Awards for its work. General Manager Greg Cate says from the beginning the NZAgbiz aim was to better use Fonterra’s loss streams for the benefit of farmers and the co-op, and avoid sending it to landfills. Loss streams include materials such as oversized sifter particles, fine powder particles and cheese trims. Because the material is not suitable for human consumption, it would normally end up as landfill waste. The Waikato company works on a ‘going circu-
animal nutrition products such as calf milk replacers (CMRs), pig products and animal health supplements such as probiotics, colostrum powder and electrolyte replacements,” says Cate. “By recycling dairy industry products we reduce the amount of material going to landfill and maximise the life of the dairy industry’s downgrade product.” Any product NZAgbiz cannot re-work is onsold as ingredients for stock feeds, soaps and bio fuels. An important aim was to enable farmers to feed
Ancalf milk replacers, made from loss streams, ready for delivery at NZ Agbiz warehouse.
calves without using the more valuable milk from their vats. About two million calves have been raised on NZAgbiz CMRs. Quality control is
important, says Cate. “We test for things similar to a Fonterra factory but using different thresholds for animal versus people. “We have a good rep-
utation for consistent high quality. People know what they are getting and can trust us; and we are audited by an external party.”
Zealand. As one of 11 finalists in the category, NZAgbiz beat nine finalists and lost to one -- the ethical beauty brand Ethique.
DAIRY NEWS FEBRUARY 26, 2019
10 // NEWS
EU chief talks up free trade deal PETER BURKE peterb@ruralnews.co.nz EU Commissioner for Agriculture and Rural Development Phil Hogan.
AN INFLUENTIAL
European Union diplomat
is optimistic that a quality free trade agreement (FTA) with New Zealand is possible before the end of 2019. The EU Commissioner
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for Agriculture and Rural Development, Phil Hogan, visited NZ briefly last week to talk to government ministers and officials about current FTA negotiations. Hogan, an influential official, is responsible for the agricultural dimension of any FTA negoiated. He told Dairy News that progress is good in the negotiations; three more formal rounds are scheduled up to the midyear. “I am optimistic that not only can we do a deal, but a quality deal,” he says. Hogan, from a family farm in Ireland before entering politics, says agriculture will always be a sticking point with NZ because it is a sensitive issue with European farmers. But he is confident a deal can be negotiated and that 98% of the tariffs and other impediments to trade can be lifted, leading to greater trade liberalisation. Two major issues are of concern to NZ: tariff rate quotas (TRQs) which affect access of sheepmeat to the EU and the UK, and geographic indicators (GIs) which mainly affect the dairy industry. Hogan says TRQs
are more related to Brexit and are an issue for the World Trade Organisation (WTO) to deal with. And the issue of GIs can be resolved. An example of a GI is the name given to a particular cheese such as gouda, which refers to a specific town or region. “Geographic indicators I suppose can be described as rural intellectual property in the EU. They are well accepted [in NZ] in the wine industry but I know there are one or two names in the dairy sector that we are worried about; but I think we can resolve those.” On a positive note, Hogan refers to a great deal of goodwill at the FTA negotiating table. “It would be unthinkable in an era of so much global disturbance on many issues, that the values and objectives of likeminded countries like NZ and the EU couldn’t bring about a deal. “If Mr Trump wants to remain protectionist we have to remain open for business and we are strong supporters of the multilateral trading system. As a result of this I think NZ and the EU will come to an agreement.”
BREXIT DOUBTS
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PHIL HOGAN hopes Brexit will end up as an ‘emergency landing’ rather than a ‘crash’. This depends on whether British politicians can reach agreement by the end of March, when Britain is scheduled to leave the EU. “When you read the papers it doesn’t look like it’s going to happen, but I remain optimistic that some deal will ultimately be reached. It would be unthinkable for UK industry, agriculture, jobs and financial services if Britain crashed out. It would be a major blow to them.” Hogan says the UK Prime Minister, Theresa May, understands the Irish backstop issue which is proving to be a major sticking point in the negotiations. But he says the behaviour of some ‘leave’ campaigners in the House of Commons shows a lack of interest in the fragile peace in Ireland. “The island of Ireland needs to be protected from the worst excesses of Brexit,” Hogan says.
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DAIRY NEWS FEBRUARY 26, 2019
12 // NEWS
High debt, stocking rates worry expert An Irish dairy researcher says despite admiring New Zealand’s dairy industry he has concerns about it, as discussed with Dairy News reporter Peter Burke at the recent Australasian Dairy Science Symposium in Palmerston North. LAURENCE SHALLOO is a scientist at Teagasc, the Irish research and advisory service where he is expert in benchmarking farming systems to determine their profitability. He says Ireland and NZ have much in common, especially their pasture based dairy systems. But he is concerned about NZ farmers’ high debt levels and their stocking rates – higher than in Ireland. He wonders whether both contribute to NZ dairy’s problems, especially the environmental costs it must now bear. “The one thing we in Ireland look on negatively is high levels of debt,” Shalloo says. “In Ireland the average debt onfarm is about 80,000 euros (NZ$130k).
Dr Laurence Shalloo.
“You need some debt for expansion but the levels of debt in the NZ industry seem strong. High debt and high-cost production
™
plus a volatile milk price are not a good mix.” Shalloo contrasts NZ’s 2.9/ha stocking rate with Ireland’s mere
2.0/ha. This worries him, although he admits that stocking in Ireland will rise as dairy keeps expanding as a result of the EU lifting milk quotas in 2015; milk production has since risen markedly. But Shalloo says Ireland’s farmers are getting the message that an increase in stocking rates must be linked to increased production. “For us profitability is everything. In 2017 the average profitability on Irish dairy farms with 80 cows was about 90,000 euros (NZ$148,000) with little debt. That profit has grown substantially in the last few years to be well ahead of tillage, where average profit is 35000 euros (NZ$57,000). In all the discussions at farm level the focus is on profitability.”
DEALING WITH BREXIT OF ALL the EU countries, Ireland faces the most challenges from any sort of Brexit – be it hard, soft or in between. Laurence Shalloo says any sort of Brexit will be a disaster for Ireland, Europe and the UK. He says for the last two years Ireland has worked on plans to lessen the impact of Brexit on its agricultural sector. “About 50% of our cheddar goes to the UK plus a large proportion of our other agricultural products. And Ireland is taking an aggressive approach to diversify into other markets such as China, the Middle East and Africa. We have a strong focus on the US and are now the second-biggest exporter of butter into that market.” The large Irish food company Glambia is selling to the US, including ‘grass fed’ products. NZ is also doing the same. Shalloo notes that consumption of dairy products generally is rising in the US. Shalloo says Ireland’s successful Origin Green campaign has positioned the country’s agricultural food products as environmentally friendly and sustainable. Under Origin Green every farm in Ireland has its environmental footprint audited every 18 months. And the Irish Food Board – Bord Bia – is collecting and collating scientific data to support claims to Origin Green’s environmental strength.
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DAIRY NEWS FEBRUARY 26, 2019
NEWS // 13
Weather boosts state farmer’s milk yield PAM TIPA pamelat@ruralnews.co.nz
PAMU FARMS’ dairy production has gone well in the first six months of the 2018-19 season, says the general manager dairy, Mark Julian. Until the end of December it was about 6% ahead of the previous 2017-18 season, like for like, excluding one additional farm, he told Dairy News. “Climatic conditions have been favourable in most regions with Central Plateau having great conditions to mid year. However Northland started with a wet, cold spring then flooding before Christmas.” His comments follow the release of Pamu Farms’ (Landcorp Farming) half year results to December 31, 2018. It has declared a net profit after tax of $29 million for the half year versus $21m for the half year ended December 31, 2017. Chief executive Steven Carden says the $5m increase was mainly due to a $4m increase in milk revenue and small increases in livestock and forestry. Julian says in the dairy division about 50,000 cows were milked and produced 10M kgMS to the end of December. They are targeting 17.5M
kgMS for the season. Julian says Pamu seeks ways to increase revenue from its farms, “including options for creating quality dairy beef calves for the Pamu livestock business; we are succeeding in this using Focus Genetics Stabiliser sire.” The company sells its Pamu brand organic milk powder in New Zealand and China and is looking to sell a milk powder branded ‘One Farm’, made from its exclusively grass-fed farm Achilles near Taupo. “We will also expand our organics, winter milk and A2 farm footprint in the coming season,” he sais. “And this season over 30% of our farm systems [have quit] conventional spring calving. “Pamu is also [achieving] best standards in milk production, for example, Pamu’s five Canterbury farms were the first multifarm business to achieve Synlait’s ‘Lead with Pride’ standards.” Pamu sees its Spring Sheep business meeting its targets and the company is creating substantial demand in international markets for this alternative dairy product, Julian says. Pamu said in 2015 that it would proceed with only 19 dairy conversions
$116,000 fine for rampant pollution
and one sheep milk farm on the Central Plateau instead of the 40 farms it had first envisaged. Pamu and the Hauraki Collective will at the end
assets and take over managing the farms. Pamu will then be milking about 45,000 cows in the 2019-20 season.
of this season reach the end of their agreement covering the milking of 4500 cows near Ngatea, Hauraki Plains; the iwi will then buy the Pamu
Mark Julian, Pamu Farms.
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A WAIKATO farming company, Nagra Farms Ltd, and
its director Naginder Singh, have received five convictions each and been fined a total of $116,000 for unlawfully discharging dairy effluent into the environment. At the time of the offending, in late 2017 and early 2018, Nagra Farms Ltd owned five Fonterra supply farms at Gordonton, near Hamilton. Offending was identified on two of the farms by Waikato Regional Council staff inspecting the farm’s effluent systems for compliance with environmental regulations. A farm manager on one of the farms, Nikolai van den Einden, was also convicted for breaches of the Resource Management Act. He was sentenced to 12 months’ supervision and ordered to attend a dairy effluent management course. The convictions and penalties were imposed by Judge Melanie Harland in the Hamilton District Court on February 18.
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DAIRY NEWS FEBRUARY 26, 2019
14 // NEWS
Discuss whether employee wants to stay or go MARK DANIEL markd@ruralnews.co.nz
THE SCALE of the New Zealand dairy industry is seen in the numbers: revenue of $14 billion, 12,000+ farmers and 34,000+ employees. Then look at the negative side of the ledger: the industry is consistently 7% understaffed and has about 900 vacancies at any time. So why do employers pay insufficient attention to retaining the employees they have for the next season? This and other questions arose at recent ‘Chew the Cud’ meetings
at Ashburton and Te Awamutu, run by the recruitment company NZ Dairy Careers and supported by DairyNZ, Federated Farmers and Fonterra Farm Source. The aim was to encourage dairy employers and employees to start talking about the following season much earlier in the preceding season rather than just before Gypsy Week, so removing uncertainty – for both parties – about whether an employee would stay or go. Employers are often afraid to broach the stay/ go issue, the anecdotal evidence showed. And a typical worker review might go something like,
“How ya doing?”, bringing a response, “Yeah, good.” The ‘Chew’ meetings urged employers, especially, to start talking sooner rather than later. An employer might say, “Have you thought about next season?” or “We’re keen to have you back next season” or “Let’s do some planning before gypsy week.” The employee then hopefully responds, “I’m keen to come back for another season” or “I’m looking at next season already.” NZ Dairy Careers managing director Matt Jones says many employers feel awkward about initiating conversations about where employees are
heading, so they keep putting them off. “We understand that starting a conversation may be difficult, more so if it’s about an employee staying or leaving. The fact is, the management of your business needs plans to be made early because in April/May the best employees have been snapped up or someone you are happy with has arranged to leave, solely because nobody’s discussed it.” Facilitators at the ‘Chew the Cud’ meetings proposed a framework of relevant questions that both parties should be asking to ease everyone into conversation. Typical subjects could
Matt Jones, NZ Dairy Careers managing director.
be career development for an employee or areas of weakness needing work, with help from the employer or outside agencies.
Salary or remuneration packages, often a difficult subject, shouldn’t be overlooked, especially given that an employee may find it more difficult
to discuss this with a current employer than with a prospective employer. Diary those talks for the early part of the year, was the advice.
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DAIRY NEWS FEBRUARY 26, 2019
WORLD // 15
Oz supermarket ends $1/L fresh milk sale SUDESH KISSUN sudeshk@ruralnews.co.nz
AUSTRALIAN DAIRY
farmers are welcoming the end of A$1/L fresh milk at Woolworths. The chain last week ceased selling milk at that price nationwide; 2L and 3L packs of Woolworths branded fresh milk now sell for A$2.20 and A$3.30 respectively. Every cent of the increase will end up with Australian dairy farmers. Australian Dairy Farmers chief executive David Inall described the move as a game-changer in the fight against discounted dairy that has long frustrated the industry. “It is reassuring that Woolworths [will pass] the full A10 cents increase back to the farmers who supplied the milk in that product category. “Removing A$1 milk is not just intended to restore farmers’ financial confidence, but it will also boost confidence in regional communities and small businesses that rely on the industry. “Consumers can buy fresh milk from Woolworths knowing they are supporting the Australian farmers who supplied it.” Woolworths’ decision follows the success of the Drought Relief Milk range on the eastern seaboard, where it has generated A$5.8 million in relief
to 285 dairy farmers since September 2018. Woolworths was the first Australian supermarket to launch this milk in September 2018. The extra A10 cents customers pay on each litre of the ‘drought’ milk is now being distributed to dairy farmers by processors in line with the usual payment cycles. Woolworths says as the price change goes national it will pay higher milk prices to 450 dairy farmers supplying its branded fresh milk. Chief executive Brad Banducci says the long term sustainability of the dairy industry and farming communities is important. “We’ve heard the outlook will continue extremely tough for dairy farmers right across the country. This is affecting milk production and farm viability, which is devastating for farmers and the regional communities in which they live. “It’s clear something needs to change and we want to play a constructive role in making this happen. “The Drought Relief Milk payment model has worked on the eastern seaboard and is the most effective way to guarantee price increases end up in the pockets of Australian dairy farmers.” The distribution of the additional funds raised
$13m/day bill WEEDS ARE costing Australian farmers on average
A$4.8 billion a year, according to a new report. The report by the Centre for Invasive Species Solutions puts the average daily loss at $13 million. National Farmers’ Federation chief executive officer, Tony Mahar says the figure was up 20% from the last comprehensive national economic analysis carried out in 2004. “The cost of weeds to farmers’ back pockets is growing and we need smarter, more strategic national investment in research, development and extension solutions to manage them,” Mahar says. Centre for Invasive Species Solutions (CISS) chief executive officer Andreas Glanznig says weed biocontrol was one such example. “To build on the $10 billion worth of benefits weed biocontrol RD&E has delivered to agriculture to date, Australia needs a new 10+ year national program to generate an on-going pipeline of biocontrol agents after current key major projects wind up in 2020,” Glanznig said.
by sale of Woolworths fresh milk will continue overseen and be independently audited. Woolworths says it will keep talking to dairy industry bodies on longerterm reform and payment mechanisms.
“We’re acutely aware of the budgetary pressures facing many of our customers and have not taken this decision lightly. We believe it’s the right thing to do and a key step in shoring up fresh milk production in Australia.”
Woolworths has stopped selling milk at A$1/L.
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DAIRY NEWS FEBRUARY 26, 2019
16 // OPINION RUMINATING
EDITORIAL
Thanks for helping
MILKING IT... Not feeling the ‘wellness’
Magical thinking
AN EXPORTNZ survey shows exporters concerned about the industrial relations reforms planned by the Government. Over 400 exporters responded -- “a good mix of small, medium and larger exporters”. Their number-one concern was “domestic regulation, e.g. upcoming changes to the industrial relations laws”. Farmers expressed similar concerns in the Federated Farmers January Mid-Season Farm Confidence Survey. In both cases, creeping unionism and knock-on effects from hikes in the minimum wage were considered a worry. It seems the PM’s fluffy talk about this as the year of ‘delivery’ and ‘wellness’ isn’t hitting the mark; exporters are feeling anything but ‘well’ about what the Government intends to ‘deliver’ in 2019.
WHILE WE’RE on the topic of a higher minimum wage, Horticulture NZ chief Mike Chapman is a clear thinkers on this, cutting through the bulldust coming out of Wellington. Obviously, the horticulture industry, like dairying, is hard-hit by labour shortages, so if Chapman believed a higher minimum wage would help address the shortage he’d be in favour. However, Chapman says the Government line that lifting the base wage is going to create a high wage economy is faulty thinking. “It’s pure economic fallacy that driving up wages will magically transform NZ; that it will get rid of low paid and what they see as ‘unskilled jobs’, so creating a highly paid work force that does not have to do what [the Government] considers to be unskilled work”. The theory goes that higher wages leads to increased labour productivity therefore the employer recoups the higher wage cost.
Pig of a claim
Who’s right?
FONTERRA FINDS itself at the centre of a row between two Sri Lankan cabinet ministers. Its Deputy Minister of Industry and Commerce Buddhika Pathirana told Parliament two weeks ago that instead of 100% natural milk, the respective imports from New Zealand were suspected of containing mainly animal fat extracted from pigs and cattle, plus palm oil and lactose. But the Deputy Director-General for Environmental Health, Occupational Health and Food Safety at Sri Lanka’s Health Ministry, Dr Lakshman Gamlath, said the claims were baseless. Gamlath told a news conference in Colombo that a certificate issued by Minister of Primary Industries Damien O’Connor proved that milk ingredients are derived only from animals of New Zealand origin. Health Minister Rajitha Senaratne also denied all allegations made against Fonterra by his colleague. The co-op says it is aware of misinformation recently shared in Sri Lanka.
DID MINISTER David Parker say it? Opposition’s Nathan Guy thinks so. National’s agriculture spokesperson Guy alleged in Parliament that Trade Minister Parker told the EU Agriculture Commissioner and his trade delegation that “hungry sharemilkers screw everything out of their cows and allow them to s*** in our rivers”. Guy asked Parker at a meeting in Wellington last week whether he had said that. Parker said he had not, but Guy said his sources said that the Minister did say that. Parker charged that Guy was “misinterpreting comments that I think he’s heard third- or fourthhand”. “The meeting with the European Commission included the issue of nutrient pollution,” Parker said. “Some of the farm groups at the meeting, I think, were somewhat shocked to hear the European Commission say that the commission had required the Netherlands to cull 100,000 cows because they exceeded their nutrient pollution guideline.”
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FARMERS ARE expected to finalise a Biosecurity Levy of 3.9c/ kgMS this week. After a round of meetings run by DairyNZ most farmers are expected to say ‘yes’ to the deal negotiated by DairyNZ on their behalf. The funds would go towards eradicating Mycoplasma bovis from NZ farms. The levy would be imposed even if dairy farmers voted against it. MPI would implement a levy under the Biosecurity Act, rather than the GIA, and the levy amount and payback period would be at their discretion without input from DairyNZ. Under the deal between MPI and the sheep and beef and dairy sectors, 32% of the contribution would come from the industry; dairy would meet 94% of that. The levy will be reviewed annually and, once the costs of the M. bovis response are recovered over two years, the levy will reduce significantly (unless there is another biosecurity response required). For example, an average farm milking 430 cows will pay a maximum of about $6100 per year, for two years, for the M. bovis response. The biosecurity response levy is permanently in place, but the levy amount will be substantially reduced once the M. bovis response costs have been paid. DairyNZ acknowledges that the financial contribution to the M. bovis response, via the levy, will be challenging for some farmers. However, it believes it was the correct decision to eradicate rather than let the disease spread through our stock -- a more serious challenge with much higher and longer lasting costs. Farmers support the programme to eradicate M. bovis and are vowing to continue to advocate for, and assist with, achieving an efficient, effective programme that works and provides equitable compensation. It’s clear the 3.9c levy hasn’t gone down too well with farmers. “When I heard the exact levy amount of 3.9c/kgMS, I got a little shocked myself,” Federated Farmers dairy chair Chris Lewis told the Feds dairy council meeting earlier this month. “I was led to believe it would be around 1.6 – 2c/kgMS. Obviously they are front-loading the costs for three-plus years.” The Government estimated the total expected response cost over 10 years to be $870 million. The Government will pay $591m, the dairy sector $262m and the beef sector $17.4m. Eradication is looking achievable and this is a great outcome for New Zealand. Partnering with the Government has significantly reduced the costs of managing the M. bovis response for farmers, something they will be grateful for.
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DAIRY NEWS FEBRUARY 26, 2019
OPINION // 17
DIRA must be modernised
Fonterra has submitted to the Dairy Industry Restructuring Act (DIRA) review, wanting an end to open entry provisions of DIRA and restrictions on other processors accessing regulated milk. Here are excerpts from Fonterra’s submission, signed by chief executive Miles Hurrell. DIRA HAS been critical of the performance of the New Zealand dairy sector since its passage in 2001. The formation of Fonterra has created wealth for NZ and for NZers. It has improved social and economic outcomes for NZ’s dairy farmers and their communities. The evolution of the industry since 2001 has had a significant impact: dairy exports grew from $6.3 billion in 2001 to $17.1b in 2018. The legislation has achieved what was intended -- to create competition. Farmers now have choices in whom they supply their milk to and NZ consumers have many choices when purchasing dairy products. Since the passage of the legislation, our cooperative has created a transparent milk price calculation that is the envy of farmers the world over. Through our cooperative and a strong transparent milk price the entire NZ dairy industry has benefitted. Whereas Kiwi dairy farmers were once paid about half that of their European or US peers, NZ farmers are now consistently paid at parity or more. Fonterra farmers are paid the maximum sustainable price for their milk by their cooperative. Fonterra remains a NZ owned co-op. The money our farmers are paid for their milk and the profits their cooperative makes remain in NZ. Most of it goes into our rural communities where our farmers spend roughly 50 cents of every dollar they earn. DIRA has the dual objective of establishing a strong, large scale exporter taking NZ’s products to the world and protecting NZ dairy farmers and domestic consumers. It is critical for the evolution of the legislation that both are kept in focus and that neither is prioritised over the other. Our cooperative
continues to work to develop a modern, worldleading dairy sector where our products are desired in markets worldwide and where consumers are prepared to pay a premium for NZ products. We also want domestic consumers to have choices when feeding their families. Fonterra’s performance is not solely driven by DIRA, however a modernised DIRA will contribute to achieving our shared vision for the future of the industry. Our cooperative wants an industry that promotes investment in regional NZ and where profits are kept at home for the benefit of all NZers. We want an industry which pays farmers good money for their milk and which helps protect and enhance the unique attributes of NZ’s environment. NZ farmers also want certainty about the future of their industry so they can make informed investment decisions and be able to determine their own destinies. It’s difficult for NZers to achieve scale when marketing their products to the world. The Government helped to achieve this by allowing the formation of Fonterra. It recognised the value it could bring NZ. But it also recognised that certain safeguards were needed. Some safeguards are still critical today, and they should be expanded to be a requirement of every dairy processor. Others are inadvertently tipping the playing field in favour of foreign exporters at the expense of Kiwi farmers. For the dairy industry to continue to succeed some aspects of DIRA must be modernised. We look forward to working with the Government over the coming months as the review progresses and to supporting a fair outcome in the interests of all dairy farmers and NZ.
Fonterra’s submission on DIRA can be found here; https://www.fonterra.com/
content/dam/fonterrapublic-website/fonterranew-zealand/documents/pdf/
Fonterra-DIRA-Submission8-Feb-signed-by-MilesHurrell.pdf
Fonterra chief executive Miles Hurrell.
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DAIRY NEWS FEBRUARY 26, 2019
18 // AGRIBUSINESS
Co-op butter melting Aussie hearts SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA’S WESTERN Star
butter has been judged
Australia’s champion butter for a seventh time. Western Star Original Salted Butter took the crown at the Dairy Australia Grand Dairy Awards 2019 in judging
that includes a blind tasting to assess texture, smell and appearance. Now Australia’s most awarded butter, it was described by judges as “fresh and sweet with just
the right salt balance” and “perfect for cooking or simply spread on fresh bread”. Western Star Butter is Australia’s no1 selling butter brand; nearly two
Fonterra Cobden butter makers celebrating the win.
packs are sold every second and it’s retail value is A$205 million a year. Fonterra’s Cobden site in Victoria has made butter for 90 years and production manager Samir Suri says the team is thrilled at its seventh win. “Our Western Star Original Salted Butter is testament to the consistency of the butter we produce, the expert craft of our team and, of course, the quality of our farmers’ milk. It helps explain why one pack of Western Star is sold every
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second.” Andrew Sharp, a butter maker at Cobden for eight years, said how special it was to win a contest with 50 finalists. “I’ve always believed the butter we make is the best, so it’s great to be recognised for it.” The Australian Grand Dairy Awards celebrated its 20th year this year, raising awareness of the quality and versatility of Australian dairy products. To enter the national contest, a dairy producers must win a gold medal in a state-wide heat.
IN BRIEFS New OSPRI chief OSPRI HAS appointed Steve Stuart as its new chief executive. Chairman Barry Harris says Stuart has a wealth of experience in regulatory and compliance roles, especially in fisheries, biosecurity and most recently immigration. Stuart says he is pleased to join OSPRI, “to lead the organisation important in the primary sector as the management agency for the TBfree and NAIT programmes”. “I see potential to contribute to the future of New Zealand’s biosecurity and traceability frameworks and position OSPRI for the future.” Harris acknowledged Dr Pim Borren as acting chief executive for the last six months. Stuart will start work on March 25 in Wellington.
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Feds/Gallagher tie-up
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HAMILTON AGRIBUSINESS Gallagher Ltd and Federated Farmers are joining forces in a business partnership. Gallagher marketing manager Darrell Jones said, “We believe in the power of technology solutions to transform the lives of farmers.” The partnership aims to better align innovative solutions with what’s happening onfarm. “We want to help Federated Farmers members in compliance and legislation. And we see value in Feds providing us with insights into farm legislative updates and changes.” Bill Gallagher (senior)’s famous 1930s electric fence sparked innovation in fencing. Gallagher technology mainstays include EID (NAIT) tag readers and insulated line posts. Feds general manager commercial Graham Hill says Gallagher’s long history with the rural sector and its focus on improving life onfarm aligns with what Feds does every day. “Our partnerships are an important part of our business and we look for like-minded culture and values for our partners. Gallagher clearly fits this profile.”
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DAIRY NEWS FEBRUARY 26, 2019
AGRIBUSINESS // 19
Tiller Talk promotes pasture PAM TIPA pamelat@ruralnews.co.nz
NORTHLAND ‘TILLER
Talk’ farmers Don and Kirsten Watson took a leap into farm ownership in 2017-18, moving to South Head (Kaipara Harbour Edge). Before they took on the farm, the Watsons had trained and worked as vets before working up the sharemilker ranks (King Country and Central Plateau). The Watsons share responsibility for different areas of the day to day management and Kirsten is responsible for the administration and accounts. Tiller Talk is based on the progress of 19 key farms across New Zealand as they receive expert advice and support. Local like-minded farmers then work together with the key farmer to improve farm profitability through better pasture management using small onfarm groups and social media. Tiller Talk farmers are supported by an agronomist from the seed companies partnering with Tiller Talk. The Watsons are the Northland Tiller Talk farmers, supported by
Kyle Gardyne, area sales agronomist for PGG Wrightson. A case study of their farm was presented at a recent Northland SMASH field day in Kawakawa. The Morelands Farm (Kaipara Harbour/South Head) is 115ha effective which is 80% marine clay flats and 20% sandy loam rolling. They lease 90ha to grow maize and rear heifer replacements and surplus calves. With a 32-bail rotary and feed pad they peak milk 270 cows (2.4 cows/ ha) with 16 hour milking. Calving started on July 16, spring mating on October 7 and March 10, and autumn mating on June 1. The pasture was previously 100% kikuyu but they now have 20% Italian ryegrass. They have summer crop of chicory mix and supplement with maize silage. Their aim in the short term was to build a farm with a cost structure under $4/kgMS FWE and producing 120,000kgMS. To do that they aim to increase home grown feed eaten and reduce supplements. Their goal is production of 12tDM/ha from the pasture and crop eaten. In their first season (2017-18), paddock contour and drainage
GETTING COWS TO EAT MORE GRASS 1. Have goals and set a KPI baseline to monitor improvement ■■ Clear goals on pasture eaten and financials ■■
Calculate pasture and crop eaten
■■
Use DairyBase to benchmark
■■
Use other farmers’ data from other regions to benchmark
2. Measure monitor and tweak Monitor pastures weekly
■■ ■■
Use a feed wedge
■■
Feed budgeting
■■
Don’t be afraid to adjust rotation length to manage APC
3. Understand the system ■■ Analyse your system ■■
Match feed supply and herd demand as close as possible without over reliance on imported feed
■■
Understand what doesn’t work/risk areas and look for opportunity e.g. use crop.
4. Incremental gains Keep getting the little things right
■■ ■■
Grow more pasture (adjust rotation, optimise N)
■■
Utilise more pasture (reduce supplement, manage pre-grazing height)
■■
Successful pasture renewal ‘four pillars’
5. Innovate and challenge ■■ Be confident to try new things ■■
Use data and evaluate
■■
Examples 2 in 3 milking, chicory, new cultivars
6. Use advice Tiller Talk – advice & recommendations from Kyle Gardyne
■■
■■
Local knowledge
■■
(planning/ implement best-practice)
■■
Challenge the ‘status quo’.
Don and Kirsten Watson.
improvements were done to increase pasture utilisation, and they focused on increasing summer feed quality with clover and crops. The season started as spring calving (under a system 4), with the first autumn calving in March 2018. They produced 91,578kgMS from 290 peak cows. Pasture eaten was 8t. In the 2018-19 season to date, pasture and crop eaten has already exceeded last year’s total pasture and crop eaten. They are on track for about 11tDM/ha eaten. Milk production at the time of presenting to the SMASH field day on February 7 was 88,000kgMS on $4.2 FWE
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season to date. Each extra tonne of DM pasture and crop eaten produces an extra $300/ha profit, the field day heard. They have revised targets and their 3-5-year
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DAIRY NEWS FEBRUARY 26, 2019
20 // MANAGEMENT
Savings showered by the sun A Woodville, Tararua dairy farmer is halving his dairy shed power bill with a solar power system he will pay for in six years. And it has no batteries. Peter Burke reports.
IT MIGHT be called a ‘blue skies’ solu-
tion and in a way it is. Eight months ago Matthew and Suzanne Jackson boldly decided to install 66 solar panels capable of generating some – but not all – of the power to run their 27-cup herringbone shed. Milking shed power had been costing them $2000 per month; since their solar power start-up it does not exceed $1000/month. The Jacksons run 250 Friesian cows on their 100ha farm and on average they produce 120,000kgMS/year. They have owned the farm for four years after contract milking there for the previous four years. Matthew has worked on dairy farms since he left school at 16 and before that he milked morning and afternoon while still at college. The rising cost of electricity was the prompt for the Jacksons’ switch to solar power. “It didn’t seem to matter how much we did, such as using power between 10pm and 4am, the power bill was essentially the same,” Matthew said. “So we looked into solar power and in the end it ticked all the boxes; we were surprised at the returns we were
“It didn’t seem to matter how much we did, such as using power between 10pm and 4am, the power bill was essentially the same.” told we could get out of it.” The panels power the shed only from sunrise so, because the Jacksons have no storage batteries, they must buy power for the early-morning milking from their power company. In the afternoon, when solar power is at its peak, the roof panels entirely power the afternoon milking, Matthew says. “About 5pm the sun goes off the panels but we are well finished by then; and a lot of milk chilling is also done by the panels. “Our hot water cylinders are now solar powered so we have two hot washes a day just because we can – the hot water is there. “Overall we get about 55% of our electricity from the panels.” Only in July, when the cows are dry, is there
Woodville farmer Matthew Jackson says his solar powered milk shed has cut his power bill by over 50%.
no direct benefit from solar.” During the day, the panels produce more power than the shed needs. “Surplus power goes back into the grid, for which the power company pays us 8c/kWh. It costs us 30c/kWh to buy power from them, so the credit we get from the power we generate comes off our power bill; even if it is only 8c/
kWh it helps.” The Jackson have also installed ten panels on their house roof, using the power to heat water for the washing machine and dishwasher – small but useful savings. Maintenance is low: the panels need an annual clean and are expected to last 25 years.
The system cost $43,000 but Matthew says the economics stack up. Since start-up last July he reckons he has saved nearly $6000. He and Suzanne are happy with their decision, “and we’ll be even happier in six years when it’s all paid for”. @dairy_news facebook.com/dairynews
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DAIRY NEWS FEBRUARY 26, 2019
MANAGEMENT // 21
Exploring new ways to make a dollar NIGEL MALTHUS
A DAIRY farmer who was told his 37ha north Waikato farm was uneconomic when he took it on in 1988 is still on the property, enjoying several income streams and still looking for new ways to make a dollar. Graham Smith was the main speaker at a recent pair of Tasman district field days aimed at encouraging smallherd dairy farmers to diversify. Dairying remains Smith’s primary business but he has added several other ventures: farm forestry (growing, milling and timber sales) plus tourism accommodation. The centrepiece of Smith’s forestry venture is paulownia, a tree which produces a valuable hardwood and a spectacular spring display of mauve flowers. Paulownia is regarded as a pest in some places because it tends to spread by suckers, but Smith grows them in rows in his dairy pasture. He says the cows love to eat the suckers – so preventing their spread – and the leaves when the trees are pruned. He once gained a windfall from felling a pre-existing pine plantation on the property and selling the trees at an unexpectedly high price. Then rather than reduce debt he reinvested in the farm, fixing infrastructure to get all the fundamentals right, and spent the remaining $50,000 $60,000 on tourist accommodation. “In all the businesses I’ve added to the farm my basic criterion was that they should not detract from the cows. So the cows carried on and kept producing at the same level. “All the trees, the tourists and everything else – I wouldn’t allow them to detract from dairy cows because basically that’s where my cashflow is coming from.” Serendipity is one
of Smith’s catchwords. When a young man came to him for paulownia timber for surfboard manufacturing, Smith learned that the man’s partner was a web designer willing to remake his website at a quarter of any other price he had been quoted. The redesign doubled his business overnight “and she is still my web manager,” he said. Serendipity also played a part the day Smith stopped to chat to a man fishing in a nearby river and discovered he was a wealthy Singaporean who had flown in that morning and would fly out that night, just for a day’s fishing. That signalled an opportunity to market his accommodation internationally by highlighting the excellent local fishing. Smith also emphasised the need to know when a venture is not working. He had tried farming ducks, first for meat, then for eggs, but found he could not make either pay and was happy when he found someone willing to buy the whole operation. Smith spoke at two field days in the Tasman region organised by SMASH (Smaller Milk and Supply Herds). A SMASH national committee member, John van der Poel, explained that the organisation was set up about 10 years ago to help address the concerns and challenges of dairy farmers with smaller herds. At the time, the industry was changing and going to larger herds. “It’s us putting up our hands up and saying, ‘Hey, we’re still here and we’re still going to be around’,” he said. However, a lot of the challenges were the same as for the owners of larger herds, said van der Poel. A big theme of the field days was that farmers must know where they stand now, where they want to be in 10 - 20 years, and the choices they must make to get there.
Some people feel they are stuck in one position, he said. “SMASH is here basically to get these people thinking.” Van der Poel agrees there is a perception that dairy farms are
uneconomic below a certain number of cows, but DairyNZ numbers show there are both profitable and unprofitable small herds. SMASH runs about 20 events a year NZ-wide.
Farm forestry and tourism are blending well with Graham Smith’s dairy business.
DAIRY NEWS FEBRUARY 26, 2019
22 // MANAGEMENT
Planning prevents poor maize AS I write this, I look out on blue sky and brown fields (except for the maize paddocks) and listen to the deafening sounds of cicadas. The predicted dry patch, which in November seemed impossible to envisage, has arrived. While many greatlooking maize crops are growing across New Zealand, we are starting to get reports of crops NZ-wide beginning to show moisture stress. Hopefully by the time you read this the rains will have come and we will end up having another good autumn with high yielding, high quality maize silage. Good quality maize silage results from a series of good choices
– not by accident. So before harvesting a crop most farmers can do a few things to ensure they make the best quality maize possible. These are as follows: ■■ Check your crop now to see when it is likely to be ready to harvest. ■■ Contact the company that sold you your seed and ask them to have a look at your crop. They should be able to give you an
approximate harvest date simply by looking at the plant’s stage of growth. Harvesting the crop The aim is to harvest at 32 - 38%DM. Any earlier than this will likely cause some yield loss and bring potential for leachate losses. Any drier than this, unless there is a lot of starch, will mean that the crop is relatively difficult to stack and therefore ensile. Crops badly affected by disease or drought are likely to be ready earlier than those which are healthy and green all the way to the base of the plant. Crops in hotter regions are also more likely to be ready sooner than crops in cooler regions.
Great-looking maize crops have been growing across the country.
Tell your contractor when the maize is likely to be ready; this will
enable him to plan the work schedule and put you in a work queue. If
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the crops in your region get affected by dry or by disease, everyone will likely want their maize silage harvested at the same time. Better planned farmers usually get their maize silage harvested on time.; poorly planned farmers usually miss out. Get the person harvesting and stacking your maize to come out and look at where you are planning to stack it. They will look at site access; closeness to drains, sheds and fences; and possible health and safety hazards (e.g. overhead powerlines). You may need to drop some fences to ensure safe and efficient access to your stack site Bait for rats Pre-bait the stack site for at least three weeks prior to the maize being stacked to slash the local rat population. Rat bait is cheap compared to the damage that they could do. Check your stock of tyres
Check how many tyres you have available and get the local tyre supplier to deliver more if you think you will be short. The aim is to have tyres touching across the whole stack. Buy inoculant that works Order your inoculant – one that is proven effective, trialed by independent organisations (e.g. universities), carrying label claims on the number of bacteria contained, and coming with after-sales service you can trust. My experience is that things are usually cheap for a reason: cheap inoculants usually have no data to back up the claims of the salesman. Don’t be caught out this year; being well planned usually means you end up with great maize silage to feed to your cows. Feel free to contact me with thoughts/ questions at iwilliams@ genetic.co.nz Ian Williams is a Pioneer genetics specialist.
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DAIRY NEWS FEBRUARY 26, 2019
ANIMAL HEALTH // 23
Demand lifting milk fat value A STEADY rise in the value of milk fat in recent seasons is due to strong consumer demand for milk fat products, says DairyNZ. The rise is seen in the updated economic values used to calculate dairy cattle breeding worth (BW) released this month by New Zealand Animal Evaluation Ltd (NZAEL), a subsidiary of DairyNZ. Economic values (EVs) are an estimate of a trait’s value to a NZ dairy farmer and contribute to an animal’s BW – the industry index which ranks cows and bulls on their ability to breed profitable and efficient replacement dairy heifers. DairyNZ’s strategy and investment leader Dr Bruce Thorrold says the update reflects higher global demand for high fat dairy products; the milk price and the relative value of fat and protein are key factors in calculatiing dairy cattle BW. Dairy farmers were told of this update last September and it is now in effect. “This rise in milk fat value is now reflected in BW so, for BW in 2019, milk fat and protein have almost equal weighting,” said Thorrold. Farmers can expect that the cows bred from high ‘BW2019’ bulls will
have an increased ratio of fat to protein in their milk. The price changes for fat relative to protein have caused large shifts in BW, between and within dairy cattle breeds. Breeding decisions have a permanent and compounding effect on dairy herd profitability and the aim of NZAEL is to identify animals whose progeny will be the most efficient converters of feed into farmer profit. BW is the index used to rank cows and bulls according to their ability to meet this objective. “This information gives farmers insights into which bulls can add the most value to their breeding programme in a market where fat is a high value component. Ongoing development of our breeding programme is essential to improving our national dairy herd and the genetics behind how our cows produce milk, profitably and efficiently.” Economic values are updated by NZAEL every year to reflect changes in values, ensuring BW remains relevant in an ever-changing market environment. Calculations of economic values account for milk production; historical, current and forecast milk prices; income from culls,
surplus cows and bobbies; the cost of generating replacements; and general dairy farm expenses. Of the top 200 bulls ranked by BW in 2019,
70% are Jersey, 25% are crossbred and 5% are Holstein-Friesian. Farmers can see the ranking of active sires list at www.dairynz.co.nz/ras.
Jersey bulls domninate the top 200 rankings.
NAIT feedback OSPRI IS inviting NAIT users to give their feedback during standards consultation. Three standards are being revised to ensure the NAIT system is fit for purpose; many proposed changes result from a review triggered by the Mycoplasma bovis outbreak. The standards affect NAIT device manufacturers, accredited entities and information providers that manage NAIT accounts on behalf of farmers. Two technical guidelines are also proposed for the manufacture and performance of NAIT devices such as RFID tags. Head of NAIT Kevin Forward says the consultation enables farmers to comment on the revised standards before they are finalised and come into effect. “Based on feedback received from farmers and the wider industry during the NAIT review and lessons learned from the Mycoplasma bovis response, there is a need to update the NAIT standards and guidelines. The consultation, managed by OSPRI, will run for six weeks and close on March 29.
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DAIRY NEWS FEBRUARY 26, 2019
24 // ANIMAL HEALTH
Trace elements essential for peak livestock performance – vet
Richard Sides, Boehringer Ingelheim Animal Health NZ technical veterinarian.
‘bush sickness’ that afflicted sheep better understood now, and failing benign climate lending itself well to early-mid 20th century prompted to address one can put stock on a pastoral farming, its soils can hide the mass plantings of pine trees as slippery health slope to be afflicted chronic mineral deficiencies that an option to pastoral farming. Many by the other. “Selenium plays a key role in helpcan undo the efforts of the best farm other pockets of NZ are almost as ing maintain the animal’s immune managers as they try to get the most low. Testing for deficiencies can be as system and [a deficiency would out of their stock. That’s the view of Richard Sides, simple as taking blood tests to detect make it] more vulnerable to worms’ Boehringer Ingelheim Animal Health levels of minerals or, going one step effects. In turn, the gut becomes NZ technical veterinarian; he urges further, liver biopsy from several live inflamed by parasites, reducing its farmers to look harder at what may animals can even more accurately ability to absorb trace elements and so it becomes a vicious circle of infecbe holding back their stock’s perfor- indicate selenium levels. “The results in a mob are consis- tion and deficiency.” mance, and says the answer may be Conducting blood/liver tests with easier to find than they first thought. tent for selenium, so you only need faecal egg counts (FEC) “It could be easy to s to get a handle on the spend five seasons and level of worm infections a lot of money chas- The link between trace will integrate the two big ing the wrong soluelement deficiencies and challenges of worms and tion to the problem minerals, ensuring one is you see in your stock, parasites is also better understood working with the other when spending just a now, and failing to address rather than expecting one few hundred dollars on one can put stock on a slippery to deal with the symptoms advice and blood tests health slope to be afflicted of the other. could reveal a simple “The beauty is that you trace element defi- by the other. can pursue this integrated ciency.” approach, once you have Typically in NZ, selenium and cobalt can be the two about four animals in your sample for identified the deficiencies, through the use of a mineralised drench treatmost common deficient minerals, an accurate indicator.” Sides says the outcomes of rela- ment. Eclipse with vitamin B12 and because of this country’s relatively young, ash type soils predominating. tively simple tests can also be sur- selenium is a good example of a twin active drench delivering both minerBoth these trace elements play a prising. “We have had cases where in one als in an easily administered product critical role in animal health and proyear the copper levels were low and to cover your bases.” duction performance. Sides points to the relatively low Selenium is responsible for main- selenium was high, and the following taining a healthy immune system, year they had completely reversed; information cost that goes with fertility and muscular development had my client assumed this year was acquiring blood tests, as opposed and about 30% of NZ’s grassland area the same as last he would have not to the high cost business of trying provides insufficient selenium levels. only wasted money on the copper to boost lowered stock productivity Cobalt is critical for the synthesis treatment but missed out with lower through crops and supplements. “That is a lot of money to spend, of vitamin B12, important for energy production thanks to the comproover what may often be an already and protein metabolism (and healthy mised selenium levels. “It is worth testing each year to stressful time for the animal, when growth rates). A deficiency in cobalt is typified by poor growth rates, a loss see where your stock are at, and the solution may be far closer to of appetite and higher death rates in to build up something of a history home, and fixed much more costto learn from and see where your effectively, with ongoing benefits into lambs. the following season.” The North Island volcanic plateau money is best spent.” The link between trace element has the greatest natural deficiencies @dairy_news in these vital trace elements, and the deficiencies and parasites is also facebook.com/dairynews
DESPITE NEW Zealand’s relatively
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DAIRY NEWS FEBRUARY 26, 2019
MILK COOLING // 25
Choose the right cooling system MILK COOLING affects
milk quality: the quicker the milk is cooled after milking, the better the quality when it is collected from the farm. Choosing the right cooling system for your farm has many good results. Lower energy costs: milk cooling accounts for about 30% of the total energy costs of operating a dairy. Energy demand and farm dairy running costs can be cut by heat recovery from your cooling system. Less risk of penalties due to milk temperature: raw milk grows bacteria rapidly above 7°C. Meeting the new milk cooling standards (in force from June 2018) may mean changes are required for your system. New milk cooling standards: the MPI ‘NZ code of practice for the design and operation of farm dairies’ contains the new milk cooling standards. The rules state that
raw milk must: a) be cooled to 10°C or below within four hours of the commencement of milking; and b) be cooled to 6°C or below within the sooner of: i) six hours from the commencement of milking, or ii) two hours from the completion of milking; and c) be held at or below 6°C without freezing until collection or the next milking; and d) must not exceed 10°C during subsequent milkings. Continuous or extended milking systems (AMS): in situations where there is continuous or extended milking, such as automated milking systems, the milk must enter the bulk milk tank at 6°C or below. ‘Continuous or extended milking’ is defined as milking for six hours or longer from the time the milk first enters
any bulk milk tank. Do you meet the new standards? Check the performance of your current plate heat exchanger. Consult with your milk company to determine if
your current system will meet the new milk chilling requirements. Fonterra has a tool to estimate your vats; other milk companies may have similar resources.
Milk cooling accounts for 30% of total energy costs of the dairy.
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DAIRY NEWS FEBRUARY 26, 2019
26 // MILK COOLING
Why energy efficiency matters ENERGY MANAGEMENT is a
key way dairy farmers and sharemilkers can cut costs and improve profits, says the Energy Efficiency and Conservation Authority (EECA). Improving the energy efficiency of your farm will reduce operating costs and greenhouse gas emissions, and build a more sustainable business long term. It will also improve returns for investors, improve productivity, free-up cash to re-invest in the business, add value for the end consumer and be better for the environment. Taking a proactive approach to improving efficiency puts more control in the hands of the farm owner who can make cost savings and better overall decisions about energy use. The main electrical loads on dairy farms are hot water heaters, rotary milking platforms, lighting and pumps (vacuum, water, precooling, wash-down, milk, effluent). Before considering specific components of farm energy efficiency, consider these simple energy savers that often get overlooked. 1. Turn off all machines, monitors, equipment and
$
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lighting when not in use; preset switch timers can assist. 2. Use energy efficient light bulbs, and fluorescent instead of incandescent lights. 3. Use natural light where possible (e.g. clear
pipe together. 6. Check that every ICP number on electricity invoices matches with a real meter on the farm. 7. Take your own meter readings from time to time and match them to the invoiced reading.
An audit is a snapshot of your energy expenditure at a fixed point in time and is the first step to planning improvements. Perspex corrugated sheets). 4. Ensure cow comfort in and around the milking shed to reduce effluent discharge which costs money to remove. 5. Bury or insulate coldwater pipes from pump to refrigeration unit. Don’t lash a cold and hot water
8. Know what tariffs you are on and, where possible, feed energy loads into offpeak tariff times. The first step in reducing onfarm energy use is to understand where the energy is being used. Nearly 90% of dairy
REFRIGERATION IS generally the thirdhighest energy user on a dairy farm.
sheds’ energy use goes on refrigeration, pumps and water heating.
The energy challenge REFRIGERATION IS generally the third-highest energy user on a dairy farm. Although chilling the milk prior to pickup is essential for food safety and quality, the energy saving measures listed below show where savings can be achieved. Refrigeration is often an important aspect of many industrial processes so measures developed in other industries can often be adapted to the dairy farm. Benefits
include less likelihood of grades due to plant machinery failure and possibly large energy savings. Optimising refrigeration plant performance is a specialised skill. While service companies may need to do certain tasks, you can schedule regular system checks, do regular maintenance (e.g. cleaning condensers and evaporators) and challenge the service provider on issues like vat and pipe insulation, plant room ventilation and refrigerant charge.
Irrigation systems, when used, typically account for at least 70% of electricity usage. Having a clear picture of what energy is being used and where, and how much it costs, enables two key things: being able to monitor, measure and show savings, and being able to target energy saving efforts in a prioritised and structured way. A dairy shed energy audit is a good way to start. “Trying to improve energy efficiency without understanding the current situation
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BENEFITS ■■
An audit draws a picture of energy use and costs that allows you to plan changes with a strategy in mind.
■■
Documentation makes measuring savings and ongoing monitoring easier and more accurate than relying on invoices alone.
■■
External consultants can offer specialist knowledge (including payback periods, challenges and supplier information) and have a wide knowledge of available and emerging technologies.
■■
Local advisors or contractors appreciate the constraints and complexities of your farm and region and are often farm managers themselves.
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is like trying to reach a destination without knowing where you’re starting from,” says EECA. “An audit is a snapshot of your energy expenditure at a fixed point in time and is the first step to planning improvements. Without an audit, whatever good strategies you put in place, it will be hard to measure their success.” At its most basic, energy use in the dairy
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■■
Whether to invest in a whole farm audit or solely the milking shed.
■■
Whether to do the audit yourself or employ a contractor / energy consultant. Available solution / technology
■■
A consultant will usually list his recommendations and associated costs for you to consider.
■■
Smart meters may be fitted to monitor how much energy is being used by individual components.
DAIRY NEWS FEBRUARY 26, 2019
MILK COOLING  // 27
Options that could work on your farm THERE ARE many ways to cool milk: pre-cooling features prominently. You can efficiently cool milk before it enters the vat using reliable, costeffective systems to chill milk quickly. Plate coolers, water chillers, ice and glycol systems and cooling tanks are among the options and these can be configured to meet any farm’s needs. Why pre-cool your milk? Through the season, herd size, flow rates and water source temperatures change; you need certainty that your milk will be down to temperature before the tanker comes to collect it. Pre-cooling the milk before it reaches the vat is often the best way to confidently achieve low milk temperatures. In your choice of the best cooling method, several factors come into play: site constraints, power reliability, size of herd, water availability and variable costs. Selecting the right precooling system can help you to reduce energy costs by reducing peak power loads and shed operating costs. The colder your precooling water, the more
you save; because the milk flows into the tank pre-cooled, the cooling unit can be smaller, saving capital and electricity costs. Pre-cooling can be retrofitted into an existing milk cooling system at any time. Milk is refrigerated to maintain its quality and to reduce the growth of bacteria. A farm can reduce costs by pre-cooling milk using well water through a heat exchanger before the milk enters the tank for cooling by refrigeration. Both these cooling stages must work efficiently to maintain maximum milk quality. High-volume milking demands high-capacity cooling; compact chillers have been designed to meet these demands. They provide powerful cooling and precise temperature control to lock in milk quality before it goes into the storage tank. Compact chillers, because they enable the fastest method of cooling milk, are ideal for any dairy where the highest milk quality is required and traditional in-tank cooling is not sufficient. The compact, robust, one-piece design of the chillers gives you the flex-
ibility to locate them wherever it suits you best – away from high-traffic areas or even outside.
Since you have to do it You may as well do it right
VAT INSULATION WORTH DOING DURABLE, HIGH quality vat insulation will save power by reducing the effects of ambient temperatures and will help milk to chill faster. If you are only marginally compliant, vat insulation may save you from having to spend more on costly cooling systems. Trials have showed that vat insulation gave a 25% reduction in the cost of running the chiller.
B&DEL0361/A
With the new regulations, in most cases doing nothing is not an option. Rather than settling for any solution, why not take the opportunity to get the best solution. With a DeLaval chiller you can actually reduce your current electricity bill which will help you get payback even faster.
delaval.com | 0800 222 228
T H G I R DO IT BE RIGHT’ L L ’ E H S ‘ NOT quipment e g n li o co k il m e th s ons ha Dairy Cooling Soluti ly with the new regulations. to help you comp
WHY A DCS MILK COOLING SYSTEM IS THE BEST INVESTMENT IN YOUR FARM Over 200
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European design and quality - Over 50 years experience in developing milk cooling tanks and one of Europe’s leading Dairy Cooling Systems producers for the needs of farmers around the world – from Mexico to Japan, from Russia to South Africa, Australia and New Zealand. Horizontal Milk Cooling Tanks with Iced Water Cooling – 50% more effective in cooling the milk compared to standard direct expansion systems without any risk of freezing the milk due to the water temperature of +0.5 > 1.0degC. Highly suitable for AMS (Robotic Farming Systems) with low milk flows – no risk of freezing the milk. Energy Saving with Packo Ice Builders (PIB’s) – thanks to the ice energy store build-up during night time hours, a smaller refrigeration unit can be installed, plus the potential savings of off-peak power rates. Water Saving with PIB’s – bore water pre-cooling is not necessary with the correctly sized PIB. This is ideal for drought prone regions or where water supplies are restricted. Improved Milk quality through Snap Chilling = potentially a higher return adding PROFITS to the farm.
TESTIMONIALS
For 30yrs Eurotec has been supplying the NZ Refrigeration Industry with leading Global Brands. The only NZ supplier of this technology providing nationwide coverage and After Sales Support with branches in Auckland, Wellington and Christchurch with over 30 Approved Refrigeration Installers throughout the country. Check out the DCS website www.dairycoolingsolutions.nz or talk to your refrigeration contractor, and come and see DCS/Packo milk cooling technologies operating at the;
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DAIRY NEWS FEBRUARY 26, 2019
MILK COOLING // 29
Keep bacteria out RAW MILK grows bac-
teria rapidly above 7˚C, so adequate milk cooling is essential for ensuring quality milk is supplied. The following time/ temperature requirements are a minimum standard for the cooling of milk; dairy operators should be striving to cool their milk to standards better than the rules. Unless used immediately for further processing, milk must be primary cooled after filtering, cooled to 18˚C or less at the completion of the
Corrective action must be taken if these standards are not being met at any time. The milk cooling curve (figure 1) can be used as a guide for compliance for the first and subsequent milkings into the vat. It is recommended that the temperature of the milk be maintained at 4˚C - 5˚C, and the temperature of any stored milk be checked prior to each subsequent milking. Any system is acceptable if it can be seen to meet the regulatory and
milking; and d) must not exceed 10ºC during subsequent milkings. In situations where there is continuous or extended milking, such as automated milking systems, the milk must enter the bulk milk tank at 6°C or below. Think about how to
Cool milk keeps bacteria at bay.
Freeze your power bill at the same time
Figure 1: Milk cooling curve.
first milking into the bulk milk tank, and should not exceed 13°C at the completion of subsequent milkings. It should be cooled to and maintained at 7˚C or below within 3 hours of the completion of milking and kept at or below 7˚C until it is collected or the next milking. In the case of automatic milking systems (robotic milking systems) milk must be cooled to 7°C immediately after harvesting and held at 7°C or below until collection. Documented milk cooling checks must be done at least twice per season to demonstrate compliance with the above standards.
improve the cooling performance of existing equipment. Farm dairy operators should consider an upgrade to primary cooling or secondary bulk milk tank refrigeration; discuss options with your dairy company, farm dairy assessor or refrigeration before spending capital.
company’s requirements for cooling. A record of milk temperature at collection or use must be available for independent confirmation. The following raw milk cooling standards apply; Raw milk must: a) be cooled to 10ºC or below within four hours of the commencement of milking b) be cooled to 6ºC or below within the sooner of: i) six hours from the commencement of milking, ii) two hours from the completion of milking; and c) be held at or below 6ºC without freezing until collection or the next
DeLaval chillers use snap-chilling technology, which unlike other more basic methods, makes it possible for you to actually reduce your power bill. In addition to this, for every litre of milk chilled, a DeLaval chiller can also produce 0.7 litres of hot water. And because they only run during milking you save on electricity costs at both ends of the process.
NOW READ IT ONLINE READING THE PAPER ONLINE HAS NEVER BEEN EASIER
Since you have to do it You may as well do it right
■ BREAKING NEWS ■ MACHINERY REVIEWS ■ MARKETS & TRENDS ■ MANAGEMENT STORIES ■ COMPETITIONS
All the latest stories and more at www.dairynews.co.nz
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■ AND MUCH MORE...
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DAIRY NEWS FEBRUARY 26, 2019
30 // MILK COOLING
Device ‘tricks’ cooler across the line SUDESH KISSUN sudeshk@ruralnews.co.nz
TARANAKI FARMER
Grant Gopperth was at a crossroads: new milk cooling regulations required that he upgrade his milking shed. Gopperth faced spending thousands on a new chiller or ice bank. But this cloud had a silver lining: the farm was just keeping its head above water in meeting the new regulations. Two seasons earlier Gopperth had combined his two farms and began milking 340 cows. He had also spent money on a new and bigger 11,500L milk vat, building an underpass for stock, two small bridges and upgrading his milk shed into a 32-a-side herringbone unit. Gopperth says he began looking at his options; his farm had an old chiller that “was just doing its job”. “I always knew it was
BAND-AID SOLUTION GRANT GOPPERTH says some might call his investments “band-aid solutions” but they are working fine. “I’m really happy with what Chillboost is doing,” he says. “I might look at a new chiller down the line.” Gopperth says Fonterra, which picks up his milk, is happy with the milk temperature. He says the new milk cooling regulations are necessary. “There are a lot of compliance costs we can argue about. In our case we have spent a lot of money redoing the cow shed and the farm. “If I can get another three years out of this chiller with the help of Chillboost, I’ll be happy.”
going to be touch-andgo; the bigger vat and the size of the chiller unit were always going to put a bit of pressure on the system.” Gopperth hired a company to take readings of his milk cooling system; after a week’s monitoring he was told milk was going into his vat at 11.5 deg C, especially after the second milking. Under the new regulations the milk in the vat has to be cooled to 10 deg
C or below within four hours of the start of milking, or down to 6 deg C or below within six hours of milking starting and within two hours of completion of milking. And the milk must be held at 6 deg C or below until collection or the start of the next milking, and must not exceed 10 deg C during subsequent milkings. Gopperth settled on a two-pronged solution that was unlikely to cost
over $1000. Firstly, he upgraded the water reticulation system in his milking shed. His shed water wasn’t connected to the mains; water filled slowly into a black tank on the farm and when the washdown pump was turned on, it recycled the water through a plate cooler. The re-circulating water warmed up in the tank. Gopperth says this water was tested and found to be about 21 deg C and “wasn’t helping our cause either”.
Taranaki farmer Grant Gopperth.
With the help of a plumber he ran a 63mm pipe into the shed, bringing cooler water from the main line. This helped him bring down the milk vat temperature to
about 10 deg C after the second milking. Gopperth realised he “needed to do a little more”. “I didn’t want to spend $15,000 on a new chiller and that’s when Chill-
New milk cooling regulations came into effect last year.
boost came into play,” he says. The device, made by Corkill Systems Ltd, is essentially a timer encased in a waterproof module. It connects a shunt to the existing vat thermostat at preset intervals; the timer is set to activate the chiller system about 30 minutes before the start of milking. It ‘tricks’ the chiller thermostat into thinking the milk is actually warmer than it really is. This causes the chiller to bring the contents of the vat down to the normal cut-off point (usually 4 deg C) or just below prior to milking. It repeats this cycle every 30 minutes. Gopperth says Chillboost has cost him $410 to install and has helped cool his milk temperature by another 1.5 deg C. “It won’t work for everyone, but in my case these two small investments have combined to get milk below the cooling threshold,” he says.
Cool your milk instantly!
with the revolutionary and efficient Haye Snap Chiller
MILK CHILLED INSTANTLY TO 4-5 DEGREES PRIOR TO ENTERING VAT This single large refrigeration system accommodates growth in milk volumes... ➤ Efficient ➤ Superb milk quality ➤ No risk of milk freezing ➤ Industry proven NZ & Australia ➤ Provides lower stresses on milk ➤ Fully installed and peformance guaranteed ➤ Compatible with Mahaha Blue & Desuperheater heat recovery systems DAIRY COOL LTD Lee Gilbert : Ph 03-307 8903 : 027-334 4365 email : lee@dairycool.co.nz • web : Dairycool.co.nz
DAIRY NEWS FEBRUARY 26, 2019
MILK COOLING // 31
Keeping records FARMERS MUST
confirm periodically that their farm’s milk cooling system is performing to the standard set by the new rules. Farm dairy operators must keep records to confirm that milk cooling requirements are being met and to confirm the capability of milk cooling equipment. Milk cooling performance should ideally be monitored monthly, but as a minimum must be monitored and recorded about the time of the expected peak milk production and in February. Each performance check must cover at least two consecutive milkings and the records must include the temperature of milk in each bulk milk tank immediately prior to the start of milking, the times milking starts and is completed, and the
temperature of the milk in the bulk milk tank at the completion of milking. Temperature measurements and recording can be done using several options: an electronic monitoring system, a chart recorder or manual measurements. The accuracy of the temperature measurement device must be known because the data collected is an official record. The dairy operator must move smartly to correct milk cooling performance if the information collected shows that milk is not being cooled according to the rules. In such cases the milk cooling performance checks must be repeated to confirm compliance with the rules. Milk not cooled according to the rules must be withheld from supply unless the milk
has been assessed and confirmed as fit for purpose by the operator and/or dairy company.
DISPOSAL OF MILK A PROCEDURE must in place for the disposal of milk. Farmers can face prosecution under the Resource Management Act 1991 if they discharge milk directly into water or if they allow milk to flow into water. Milk is a potent pollutant -- 1000 times more potent than farm dairy effluent. So if it gets into waterways it will have a serious impact. The following are possible methods for disposal of milk on farm: a) discharge into effluent ponds b) spray irrigation c) waste pond or trench d) sacrifice area e) feeding livestock. Farmers should check with their regional authority before disposing of milk onto land.
We don’t just snap-chill your milk. We’re also freezing our interest rates at 0% on any purchase of a DeLaval chiller for the next 24 months. This is a deal that will be hard to beat. Visit your local DeLaval dealer to put the best chiller on the market, onto your farm.
NOW READ IT ONLINE
Since you have to do it You may as well do it right
■ BREAKING NEWS ■ MACHINERY REVIEWS ■ MARKETS & TRENDS ■ MANAGEMENT STORIES ■ COMPETITIONS ■ AND MUCH MORE...
All the latest stories and more at www.dairynews.co.nz
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DAIRY NEWS FEBRUARY 26, 2019
32 // MACHINERY & PRODUCTS
Better cutting on farm, park or roadside JOHN DEERE has introduced a new line-up of rotary cutters in the form of the E, M and R series, with a new deck and cutting chamber design. Varied working widths and machine configurations allow users to deal with grass, pasture, crop residues and roadsides; they’re good for farm and commercial work. Much of the redesign is to get better cutting performance: a
reshaped chamber design increases volume, better airflow around the deck improves the quality of cut and material distribution under the deck, and less material accumulates above. At the front, a suspended front mount helps improve stability by isolating movements between the tractor and the implement and vice versa. New torsional rear sus-
pension is optional for the M-series but is part of the base package of the highspec R-series. This configuration helps machine stability and gives a more consistent cutting height. E-series machines have a 75hp rated gearbox and Category 4 driveline. The 100hp/Category 5 is the base for M-series, with the option of an upgrade to 125hp/Category 6. All R-series machines are equipped with the 125hp/
Category 6 configuration to achieve greater capacity, improved durability and increased output. Working widths: first, the new 3.6m (12-foot) cut E12, then the 4.5m (15-foot) cut E15; in the M-series the choice is the 4.5m M15 or the 6.1m (20-foot) cut M20; the top-of-the-range R-series contains the 3.5m R10, 3.6m R15 and the 6.1m R20. Mark Daniel
John Deere’s new Rotary-Cutter.
New cab key to redesign
JCB shows off its new agricultural Loadall in the UK.
DEMAND FOR a retrofit option for its older loader
models has prompted Quicke to develop ‘Q-companion’, a unit that fits the 350,000 Dimension and Trima Plus loaders made 2005 - 2017. Launched in 2017, the Q-companion is used for load weighing and safely storing weighing data in the Q-companion app. Magnus Sundell, product manager at Ålö, says the Q-companion is “accurate, affordable and intuitive, so adapting it to fit older loader models was a natural step”. The product makes it easy for users to document yield and time spent loading, and get an overall view of the material flow in their business. The retrofit kit for the older loader models comes as a package containing all the necessary parts for installation in a few hours, either by the farmer himself or by a dealer mechanic.
Loader maker launches retrofit option
Q-companion box.
EasyCut R Series Mower
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Increase your work rates and productivity with this ver y capable machine.
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DEALERS NATIONWIDE
MARK DANIEL markd@ruralnews.co.nz
JCB HAS given fans a glimpse of its new-spec agricultural Loadall at the recent LAMMA UK show. The company says the new series 3 range brings together product upgrades from the last six years. Key to the redesign is a new cab – Command Plus – claimed 50% quieter than the current model; and it’s longer and wider, has better layout, more storage space and much better forward visibility to the wheels and beyond, achieved by fitting a new low-slung dash panel. Upward visibility to raised forks, buckets or grabs is also 15% better, by virtue of uninterrupted glazing up and over the operator’s head. Other new features include optional Chassis Sway hydraulic levelling adjustment on the front axle, in-cab and external pressure relief when changing implements and an updated colour scheme. Now in its fifth decade since being launched, the series 3 will have four new models with 200kg greater lift capacity than the current offering. Models will be designated 538-60 (3.8t/6m lift), 532-70 (3.2t/7m), 542-70 (4.2T/7m) and 536-95 (3.6T/9.5m). The high capacity, heavy-lift, bulk-handling 560-80 (6t/8m) will remain unchanged, as will the 537-70LP (3.6t/7m Low Profile) that uses a low-profile cabin for restricted height operation. Variants will include Agri, Agri-Plus, Agri-Super and Agri-Pro options as previously offered with 4.4L and 4.8L JCB EcoMax motors delivering 75, 109, 125 and 145hp.
DAIRY NEWS FEBRUARY 26, 2019
MACHINERY & PRODUCTS // 33
Keeps water use on the level RURAL FOLKS wringing their hands about tank water levels
will welcome a device from Davey Water Products. Household tensions rise as tank levels fall and rain holds off, so you give up and order a tanker-full that usually arrives just before the heavens open. Davey’s new TankSense allows real-time monitoring of tank levels; it plumbs into the delivery feed from the tank with a single ¼-inch BSP fitting. The TankSense works via a smartphone app to the householder informed of tank levels; it delivers alerts as levels get low, predicts rainfall based on weather forecasts and is customisable to individual households or businesses. The system also tracks monthly water use and predicts how many days supply remains in the tank. Compatible with iOS and Android devices, the system has a 50-100m working range via a Bluetooth connection, pressure accuracy of +/- 1% and a battery life of 24 months. – Mark Daniel
TankSense allows real time metering of tank levels.
POSTDRIVER SPECIALS SERIES 5 200° ROTATIONAL INCLUDES New spray to boost udder health.
Spray boosts udder health LELY HAS launched a sprayable barrier against bac-
teria to boost the udder health of cows. The Quaress Barrier is a spray especially for use with automatic milking. Lely calls it a ready-to-use udder-care product. “After every milking, the robot sprays the product directly onto the teats of the cow, ensuring direct protection by applying a barrier layer. “This physical protection closes the teat sphincter and protects against environmental bacteria until the next milking; it is ideal for use on dairy farms where challenging environmental conditions make well-protected udders essential.” The product allows dairy farmers to broaden their interpretation of udder health.
• 3.1m-5m Expanding Mast -No Hinge to lower • 200 degree Rotation • 340Kg Lead hammer – Over 25,000 kg of Driving force • Two Hydraulic legs • Rock Spike and Auger Kit compatible • Simple, Strong, and Fast – Designed by fencing contractors • Plastics Slides and Fully adjustable wear pads • Can be rotated from the Tractor cab
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DAIRY NEWS FEBRUARY 26, 2019
34 // MACHINERY & PRODUCTS
Is someone taking the piss? FOLKS IN the Netherlands are liberal, right? And they like to smoke aromatic tobacco with hallucinogenic properties? OK, but this Dutch company is really taking the urine. Hanskamp, a dairy equipment maker, is developing The Cow Toilet, designed to separate urine from manure and so to reduce ammonia emissions. The EU has directed emissions cuts and each country has an individual target. The University of Wageningen has calculated that 90% of ammonia emissions result from farming. When manure and urine mix – the norm in housed cattle – ammonia is produced, released into the air, then precipitates on the ground as nitrogen, creating the well-known run-off issues. The Hanskamp cow toilet, developed since 2016, is an automated urinal a cow uses on visits to an in-shed feeding station. The system relies on the nerve reflex in cows that, when stimulated, causes the animal to urinate immediately. The toilet is placed against the cow’s suspensory ligament, moving in unison with the cow. The technique locates the nerve that, when stimulated, triggers the start of urination; the urine is collected in a container then goes by suction line to a separate storage tank. The result is a big cut in ammonia emissions and a better shed environment for animals and workers, less need for effluent storage space and lower costs. Hanskamp says the collected urine has potential for another income stream – a high-quality raw material for precision fertiliser. – Mark Daniel
The cow toilet developed by a Dutch company.
Workshop audio lamp.
Work on with light and sound MARK DANIEL markd@ruralnews.co.nz
“Designed by a Farmer for Farmers”
PHONE 0800 4 AGBITS | 0800 4 242 487 WEBSITE www.agbits.co.nz
LED AUDIO lights new from Narva bring a white light and quality sound to work-
shops, and portability for listening to music and seeing better under a vehicle hood or in a dark corner. Three models produce 600, 2000 and 5000 Lumens, respectively; the audio lights have COB LEDs and Bluetooth speakers to link to a smartphone or tablet. Maximum volume is 84dB. The audio lights have a Bluetooth range of 20m, and they ‘remember’ the last device they were paired with. The rechargeable hand-held 71400 model produces 600 Lumens and has a 90-degree rear bracket and magnetised base. At full power it will shine brightly for two hours or if used as only for audio the battery will last 15 hours. The larger 71404 audio light has 2000 Lumens output; it can be run corded or as a rechargeable, with a 10.8V 6000mAh Li-ion battery. Depending on the light output selected via a dimmer control feature, this audio light will illuminate for 2.5 - 12 hours and fully charge in 4 - 5 hours, either by USB cable or 5m 240V AC power cable. The top-range 71406 unit has 5000 Lumens bright light output, the battery lasts 1.5 - 17.5 hours and it’s adjusted via the same dimmer and battery life indicator as the 71404. Charging time, either by USB lead or 5m 240V AC power cable, takes 3-to-4 hours. It uses the same lithium battery as the 71404.
WE’RE BUILT
FOR THE LONG HAUL
PAYLOAD
CAPACITY 680KG
TOWING
CAPACITY 1134KG
1
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SIDE BY SIDE IN NEW ZEALAND
SERVICE
INTERVALS 200 HOURS
We’re built for New Zealand. For dry dusty days, torrential rains and howling blizzards. For endless forests, flooded river plains and grassy paddocks. For steep hills, treacherous rocks and deep muddy creeks. For carrying, hauling, mustering, fencing or any other job you can think of. So visit your nearest dealer and see how a Can-Am Defender is built for you.
CALL NZ 0800 444 475 OR VISIT WWW.NZ.BRP.COM/OFF-ROAD/ FOR MORE INFORMATION © 2018 Bombardier Recreational Products Inc. (BRP). All rights reserved. ®, ™ and the BRP logo are trademarks of BRP or its affiliates. Always ride responsibly and safely. Always wear protective gear & approved helmet. BRP reserves the right to change the promotion at any time.
WE’RE BUILT FOR THIS.
WE’RE MAKING SOME CHANGES TO IMPROVE THE NAIT SYSTEM. Help build NAIT’s capability and protect New Zealand’s primary industries. Confirm or update your NAIT account Identify the land you manage animals on Need Help? Call 0800 482 463 7am–6pm (Mon-Fri)
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