Dairy Focus
NOVEMBER 2019
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EDITORIAL COMMENT
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It surprises me not that Brent and Rebecca Miller are at the top of their game (see Heather Chalmers’ story in this edition). They were joint runners-up of the 2019 Dairy Business of the Year competition and judged the best Canterbury farm. They milk 2375 cows over two properties for Andy and Rachele Morris at Carew. They both come from farming families and have worked on dairy farms all over New Zealand. I had the pleasure of interviewing Rebecca in 2012 when she was involved in the Mid Canterbury Dairy Women’s Network. Back then the industry had identified it needed 600 new people in central Canterbury to keep up with growth in the region. There were challenges
PAGES 3-5 to be both profitable and environmentally sustainable. Change was inevitable, they reckoned. The couple were up for all those challenges and have clearly dealt with them, remaining sane and being good to the people they work with. Their “farmily”. It’s been a tough time lately, but cows wait for no man (or woman) and the daily milking operations must carry on. The UV is rising. Put on the sunscreen.
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Meet the Millers’ happy ‘farmily’ People are just as important as cows in the dairy farming operation of Mid Canterbury couple Brent and Rebecca Miller, who have trademarked the term “Farmily”. “A farmily is an intentional community on farm who look out for one another,” Rebecca Miller said. The Millers, of River Terrace Dairy at Carew, were joint runnersup in the 2019 Dairy Business of the Year (DBOY) and judged the best Canterbury farm, with their low-cost, high-production performance. The Millers, who are lowerorder sharemilkers, were first-time entrants. The farm, owned by Andy and Rachele Morris, is this season milking 1150 cows on 318 hectares. The awards used data from the 2017-18 season when the Millers milked 925 cows on 273ha. In addition to this farm increasing in size and cow numbers, the Millers have also this season taken over the Morris’ second farm, a 398ha property carrying 1450 cows. The farming business recorded the lowest cost of production in the competition, at $3.84kg of milksolids, and judges said running a tight ship with good cost control ensured the win in that category. Operating expenses were contained
Heather Chalmers
RURAL REPORTER
at 45 per cent of gross revenue and River Terrace had a good pasture harvest of 15.5 tonnes of drymatter/ ha, with pasture being 78 per cent of all feed consumed. Production was 495kg/MS/cow, with the business achieving a return on capital of 7.5 per cent compared with a Canterbury average of 4.7 per cent. River Terrace’s conversion to dairy was completed in the 2014-15 season, with the Millers starting in June 2015. Previously it was used as a dairy support block for the larger partnership that was Ealing Pastures. For its conversion, the irrigation system was upgraded and the whole farm redeveloped The property is a system four, with about 600kg of supplementary feed (grain and palm kernel) supplied in the shoulders of the season to extend lactation and transition cows to fodder beet for winter.
A Fonterra tanker collects milk at River Terrace Dairy.
The couple run a stocking rate of 3.42 cows/ha, slightly lower than the Canterbury average, to provide more grass availability to fully feed their cows and deliver a high per cow production. “Our main focus is keeping our cows at optimum health and fully fed throughout the season,” the couple told a DBOY field day on the property. “We believe getting the cows to maximum intakes as soon as possible and maintaining high quality feed will get the cows to peak faster and hold the peak longer.
PHOTO HEATHER CHALMERS
Keeping the cows fully fed will mean more days in milk and result in a higher cow production. “The more days in milk the cow has through the season the less she is costing the business. “We plate meter twice a week from October to get a better understanding of what the grass growth rates are doing and make timely decisions on increasing or decreasing round length, reducing nitrogen, shutting silage up and when to introduce supplements.” Continued over page
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From page 3 Cows are given an adequate pasture cover after afternoon milking, so they have plenty to eat without the need for staff to check pasture residuals in the evening. Pastures are closely monitored during the day so that cows graze down to a 1600kg of drymatter residual. Cows are wintered on an adjacent support block on fodder beet, kale, baleage and straw. The couple questioned all spending, with budgets developed and monitored closely. “Tactics for tight times never left us and it is important that we are always thinking about cost versus value. “Timing is just as important as making the decision and acting, as making the decision too late may cost more money. For example, the timing of when to bring the feed in the shoulders.” Brent Miller said they treated each year as a low payout year. Their approach was to have below average spending on everything, rather than a particular thing, and this all added up. The couple benchmarked with DairyBase and Macfarlane Rural Business and analysed their operation to find where they could improve. “For opportunities, we are looking at the whole business, not just our own sharemilking operation. If we are in synergy with each other, we all have the chance to progress,” Rebecca said.
Left – The couple run a stocking rate of 3.42 cows/ha, slightly lower than the Canterbury average, to provide more grass availability to fully feed their cows and deliver a high per cow production. Right – From left, Brent and Rebecca Miller with their River Terrace Dairy team: Roel Serrano, Jessie Dela Cruz, Renee Hart and Graham Hart.
PHOTOS HEATHER CHALMERS
River Terrace Dairy also won the business resilience and best people leadership awards. The people performance award showed the Millers had been able to achieve their financial results while caring for their people, the judges said. Rebecca Miller said that how they treated people was important. “Our reputation is gold. “We live in a small village called New Zealand and it takes years to build a reputation and minutes to break it. “We view our relationships with all people as important to our business, whether they are delivering to the farm, or have worked in our business for many years.” Rebecca grew up in a North Island dairy farming family before working
in sales and marketing, tourism and administration roles, while Andy grew up in Christchurch until his teenage years when his parents bought a small farm in North Canterbury. The couple met when Brent was at Telford, with Rebecca’s brother, completing a Diploma in Agriculture. Initially dairy farming in the North Island and climbing the ranks from farm assistant to second in-charge, they then looked for opportunities in Canterbury. About 10 years ago they approached the Spectrum Group “who took us under their wing and taught us about budgets and financials and how to run big dairy operations”. They then moved to the Morris property, River Terrace Dairy, on the
north bank of the Rangitata River, progressing from management and contract milking to lower order sharemilking and from one to two farms, now milking 2600 cows. An emphasis on a good team culture meant that in five years only one staff member has left, to take on a second-incharge job on another farm. The Millers train and empower their staff with the ability to make decisions on feed quality, problem solving and prioritising multiple jobs to be done within the team. The team have chosen a six-days-on, two off roster with light duties on the weekends. People can swap and change days off to suit their needs. Using the “farmily” approach, the farming operation extended to also
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include the teams’ family. “If there are school events or appointments, then the team can decide what can be done to accommodate this, so that no one misses out. “It’s being good to your people, good to yourself and giving staff the tools, time and space to do their job well,” Rebecca said. “Safety is not just a physical thing, but a mental thing.” Timesheets are actioned every fortnight. “We monitor everyone’s hours closely to ensure that hours worked are in alignment with our values of work-life balance.” In addition to running two farms and managing eight staff, the Millers are also involved in several other farming
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activities. Rebecca was the local convener of the Women’s Dairy Network for four years and last year completed the Kellogg rural leadership course. This led her to develop a website called Land Events, expected to be available by the end of the month, aiming to lift the profile and stop the duplication of rural events by putting all the information in one place. Her Kellogg research showed that 81 per cent of people were missing out on farming events because they were unable to reorganise their work commitments. The website will also be a job portal for primary industries. Rebecca is also writing a book titled Embrace the Intangible, which will
cover their people-first management system. This was about the attitudes and behaviours of people and how her principles can be applied to manage dairy teams. “We love this industry and the people. People are what drives us,” Rebecca said. The couple also want to set up a consultancy business. Environmentally, the property has an effluent system with 60-day storage. Effluent is applied to 188ha, 60 per cent of the farm, at low rates through pivot irrigation with proof of placement through telemetry. Water-activated nitrogen (coated urea) is used at a rate of 275kg/ha. Use of water-activated nitrogen
meant less evaporation and wastage of nitrogen into the environment, with the farm considering the use of liquid urea. Following conversion, the whole farm is now one-hectare grid soil tested every three years, to identify base fertiliser requirements. “From this and variable rate application of fertiliser, we have decreased our overall base fertiliser usage, having a huge impact on cost savings,” Brent Miller said. Owner Andy Morris said that when the farm was converted, a lot of potash and lime was applied, but not as much superphosphate as he would have traditionally expected, using the precision technique. Asked about tightening environmental requirements, such as proposed freshwater nitrogen limits, Morris said there was room to improve, but the farm was already operating at best management practice and graded A for its Farm Environmental Plan. “The worry is what is the next stage and we are looking at science, the Hinds managed aquifer recharge project and potentially genetically-modified grasses to solve problems, rather than unachievable limits.” Morris said he was involved in research on effluent and the growing of algae for feeding cows. Judging for DBOY has a 70 per cent weighting on financial performance, 15 per cent on people leadership and productivity and 15 per cent on environmental performance.
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Dog whistle politics don’t work I was less than enthusiastic at the thought of attending National MP Todd Muller’s water meeting in Ashburton last month. This wasn’t through any fault of Muller, National’s spokesperson for agriculture, but rather his party’s approach to the raft of challenges farmers are currently facing. National’s proxies have been advocating for public protest - both openly on social media and behind closed doors with industry groups. Protest was a disaster for farmers at the last election and, no matter how good it may have been for the National Party, I still don’t see it as a constructive or useful tool. Another reason for my antipathy was the recent policy announcement coming from the National Party leaders; the dog whistling has been so loud my Labradors are in a constant state of confusion. Even if there was evidence unvaccinated children of solo mums had caused the measles outbreak in Auckland, and there isn’t, cutting the benefits of those parents still wouldn’t have prevented it. Of course dog whistle politics isn’t confined to the Nats, at the last election Labour plumbed new depths with their “Chinese-sounding names” housing attack and immigration policies across the spectrum seemed to be a race to see who could be most xenophobic (the Greens, to their credit, pulled out of that race and Labour won by a nose). I did attend the meeting though. The fact that Muller had drawn a line in the sand and committed to ending DIRA played almost as big a part in my decision to go as the message from a twitter friend saying they’d be there and were looking forward to meeting me. I’m glad I went. I was expecting a partisan call to arms and an exhortation to drive my tractor to Parliament in protest at the oncoming new regulations. Instead I got reason, pragmatism and encouragement to respectfully engage with the process. It was obvious Muller had been giving it his all, fresh off a North
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Island tour he was in Ashburton after speaking in Timaru earlier in the day and Oxford the day before. Barely able to speak above a hoarse whisper he regularly sipped from a glass of water, joking at one point that it was a delicious 2.5 per cent nitrate. I couldn’t imagine David Parker getting away with a comment like that, let alone getting a laugh from the 70 or so people that had come to hear him speak. The meeting wasn’t strictly about water, it was meant to address the many issues facing rural New Zealand today, but if a politician is going to address a crowd of Mid Canterbury farmers there’s little doubt it will become a meeting about water. Muller set the scene by harking back to Helen Clark’s statement some 20 years ago that agriculture was a sunset industry and built on this theme the idea that the current Labour Government does not like farming and want to see it gone. Whether that’s accurate or not, it was an idea the crowd was receptive to. He lamented that the progress made by farmers had not been acknowledged and congratulated the room on the way farmers around the country had engaged on the proposed freshwater regulations in a respectful and informed manner. This, he said, was the way forward; engaging with facts and science, not pitchforks. Leaning in, he called it. My friend and I looked at each other when he said this because this was astounding. This is a radical departure from what I had been seeing in public until very recently and it is a philosophy that I could get behind.
Todd Muller.
PHOTO ASHBURTON GUARDIAN
National, Muller said, would not be put in a position where they oppose the freshwater proposals simply because of their economic impact. This would be just as wrong as the situation we currently find ourselves in where targets are being set with no regard for their social OR economic consequences. A balanced solution must be found that takes everything into account. He’s right of course, I just hadn’t heard National say it out loud until now. ECan currently have a nitrate target of 6.9mg/litre, and shifting
that target to 1mg has a diminishing positive effect on the environment while the economic and social costs increase exponentially and potentially catastrophically. I’ve said before that farmers just want to be left alone, but barring that we want certainty which is why a bipartisan agreement on water policy must be reached. I’m very glad to see National are taking this approach and are there fighting for the economic and mental wellbeing of farming communities. I look forward to seeing them apply this approach to all communities.
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M. bovis aid trial extended The Farmer Assistance Programme (FAP) set up to help dairy farmers under active surveillance from Mycoplasma bovis has been extended to North Canterbury. The programme has been trialled in Mid Canterbury over the past six weeks, with good results. It involves farmers working with farmers to help them through the M. bovis process in the early stages. It is funded by MPI but under the direction of Federated Farmers. Only a small percentage of farms under active surveillance go on to be identified as having the cattle disease, but stress levels are high in the group because of the unknown. Tineka Johnstone is one of five women in the FAP, qualified to help answer questions and guide farmers. “We can answer any questions the farmer may have about active surveillance and the process. We also have direct lines into MPI so we can follow up testing scheduling or if test results have taken longer than expected.” Johnstone said team members could also help the farmer get NAIT records in order. They also keep in touch via phone or text during the process (or farm visit if required) until the farmer either comes out clear or moves onto a NOD.
The Farmer Assistance Programme helping farmers under active surveillance for Mycoplasma bovis has been extended to North Canterbury. PHOTO ASHBURTON GUARDIAN
Ninety-five per cent of farms under surveillance come out clear. “If they move onto a NOD we recommend they opt into the Rural Support Trust services and we would do a handover to them.” She said the group had had a positive response so far to those farmers that they had called in the Mid Canterbury region. “Over half of them have asked us
to follow something up for them or answer questions. “MPI have been helpful in getting us trained up and working with us in helping the farmer, and at the same time being open to feedback to enable them to improve their systems.” FAP was a much-needed link in the chain for farmers and provided clarity over the testing process, factual information to make decisions with,
and next steps info. Johnstone is joined on the FAP by Jodie Loos (Hororata), Emma Bedford (Dorie), Monica Mattushek (Te Pirita) and Katie Flett (Temuka). To contact the FAP group, the farmer either needs to opt-in when rung by the Active Surveillance Liaison team or ring Tineka Johnstone on 027 404 6383 or email tineka.johnstone@gmail.com
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Data will show water improvements I’m sure you would have noticed more irrigators going around the country as temperatures have been getting higher. They definitely have been here in Canterbury, just a few weekends ago we experienced one of the hottest November temperatures on record. These variable spring and summer climatic conditions, coupled with market supply and value-add processing requirements, mean irrigation especially at this time of the year is essential for consistent and quality food production around New Zealand. However, as we get into the full swing of the irrigation season and the end of another busy year, agriculture and the environment is at the front of mind for many. Most, if not all Kiwis have some sort of connection to the environment and many people’s antennas pop up when the word environment is mentioned around the table. Many policy proposals, government and independent reports, and public discussion in recent times reflect this. First, there was the Action for Healthy Waterways discussion document in early September which is something I’m sure you’re all probably tired of talking about. However, I hope this conversation
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IRRIGATION NZ
encouraged you to contribute a submission. Secondly, it was announced that agriculture had been pulled from the Emissions Trading Scheme – for now. Thirdly, the Zero Carbon Bill (ZCB) was passed through its final reading in parliament with unanimous support, which will shape how the country prepares and adapts to climate change. Last but not least, the latest report of the Parliamentary Commissioner for the Environment (PCE) was released, which highlighted gaps in the data and information relating to the environment in New Zealand. Both myself and IrrigationNZ (INZ) support the PCE’s recommendations as we hope this report will lead to improvement in data collation and use to demonstrate water quality improvements and support a unified vision for the environment. It is well known that we have patchy environmental data in New Zealand
but it is important to have this highlighted by an independent body like the PCE, which will hopefully trigger investment into beefing it up. Considering many individual irrigators and a majority of the large schemes have been following good practice for a number of years, it is frustrating not to have comprehensive data to back this up. It is encouraging that this report puts pressure on decision makers – across the political spectrum – to look at our environment holistically, to find a unified and clear goal for what we want to achieve across land and water, and develop cohesive metrics
and mechanisms to measure progress toward this. It is positive to note the support for passing the ZCB in Parliament – which shows the country can unite on environmental issues. At INZ we have prioritised development of a robust database of information for our sector. We have recognised the gaps that exist so we are committed to working with central and local government to address this. Unless we do, the lag times between action and effect will become longer and therefore the consequences more difficult to address.
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Right plant, right place helps farmers Fonterra has announced a new initiative called Plant for Good that will help farmers reduce the cost of on-farm native planting. Plant for Good is a partnership between Farm Source and ecological consultancy Wildlands to deliver an end-to-end planting service nationwide at a discounted rate. The aim is to provide the right plants suited to the different regional conditions, ensuring a high survival rate. The service includes site assessment, eco-sourcing of plants, planting, maintenance and monitoring. There are a number of planting options including riparian, indigenous, shelterbelt and forestry/woodlot – all providing positive benefits. Fonterra chairman John Monaghan said planting was an important part of the solution to the environmental challenges faced by dairy farmers. “But it’s estimated that nearly half of what’s planted doesn’t survive because they aren’t the right plant for the region, climate or soil. “Plant for Good guarantees a survival rate of at least 90 per cent for the first 24 months, achieved through expert plant selection, regionally sourced plants and ongoing maintenance.” Rangiora Fonterra farmer Sam
Spencer-Bower said farmers planting was good for the environment and for farms, and farmers needed to front foot the issues facing them. “Planting is about doing the right thing. “All farms are different in terms of how they are run, how much time they have. “Some farms will struggle to make it happen and this is a good way to get it done. “Unfortunately, not enough thought goes into what’s being planted. “A lot of people throw things in, but if you don’t do it properly or have the right spacing – it’s money down the drain. “I’d recommend chipping away at it every year and when you do it, do it right.” Wildlands would help ensure that the right plant was in the right place, for the right purpose. Plants are eco-sourced regionally to ensure they are suited to cope with climatic conditions. The company will monitor and maintain plants at appropriate levels over 24 months post-planting. Farm Source director Richard Allen said farmers were increasingly being asked to do more when it came to improving water quality, combating climate change and reducing
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emissions. Plant for Good aligned with Farm Environment Plans. The co-op had already launched Co-operative Difference, which brought together existing on-farm requirements and made them easier to understand. It also gave farmers clear guidance on likely future requirements and supports them with regional advice
and industry partnerships. “Plant for Good is in addition to the on-farm tools, services and solutions that the co-op already provides to help farmers run healthy and sustainable businesses.” Fonterra offers free Farm Environment Plans to its farmers and nationally 23 per cent of farms have one. In Canterbury, 69 per cent of their farmers have FEPs.
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ENERGY FEATURE
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Environmental management helps Improving the environment one step at a time is a focus for the Everest family on their dairy farm near Ashburton. The farm is managed by Paul Everest, and owned by Phil and Jos Everest. Phil has worked as a farm consultant and works part-time on the farm. They milk 750 cows on Flemington Farm - a 221 hectare milking platform. The family have a commitment to creating an attractive environment for staff, animals and the community. “We also want to provide a friendly and co-operative work environment, and to focus on achieving the best milk production we can – predominantly from grass,” says Phil. Flemington Farm has been a certified ‘Lead with Pride’ supplier for Synlait for over four years. Suppliers must have a Farm Environmental Plan and report on animal welfare, milk quality, social responsibility (people) and the environment. The programme and plan indicate that small changes in on-farm practices or weather conditions can change their nitrogen loss profile. It is one of 30 farms participating in a DairyNZ project in Selwyn and Hinds which is working with farmers to identify options to help reduce nitrogen losses to meet local zone requirements. The farm is located on heavy clay soils that are tile drained. The Everests have installed three centre pivots and one of their irrigators uses water efficient variable rate irrigation. Effluent is injected through two of the pivots at a 10 per cent rate, equivalent to an effluent application of 1-2mm/day. Efficient water use and minimal drainage mean that Flemington’s nitrogen losses were only 22kg of nitrogen per hectare in 2015/16. “Being involved in the Selwyn Hinds project has given us the opportunity to carefully review our options,” says Phil. “We are prepared to give different things a go. “We introduced a 10-year programme to incorporate plantain, chicory and Italian ryegrass into our pasture mix,” he says.
The Everest family are committed to caring for the environment and people.
Just over 60 per cent of Flemington’s paddocks have now been sown with this mix. Phil says this could significantly reduce their nitrogen losses, but they will have to wait for Overseer modelling to be updated in 2020 to see the impact of these changes. The Everests have also been using N-protect Urea in late spring and summer. This reduces volatilisation in warm weather and can reduce nitrogen losses by up to 10 per cent. Another way the Everests plan to reduce their nitrogen losses is by improving their in-calf rates. They have been working with their vet and LIC to improve breeding performance so fewer replacement cows need to be introduced to the farm. Phil says that this strategy will take time to achieve results. Although the farm used more fertiliser this spring than planned due to challenging conditions, Phil says the changes they have introduced mean the farm is largely on track to meet its 2025 nitrogen leaching target. However, they will be looking for some new science-based options to help them meet their 2035 nitrogen
loss reduction targets. The government’s proposals to introduce new bottom line targets for nitrogen in water is also a concern for Phil and other local farmers and it has caused a lot of uncertainty in the community. “As farmers, we care for the
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www.veehof.co.nz
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environment and we can make good progress through steady, incremental improvements where everybody does their bit,” says Phil. “But we need to strike a good balance between social, economic and environmental concerns.” – DairyNZ