Dairy focus march 24, 2015 by Ashburton Guardian

Dairy Focus MARCH, 2014

Business as usual for the Graylings Pages 3-4

Will Grayling talks about farming in tough year.

PHOTO DONNA WYLIE

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Farming Dairy Focus

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INDEX

COMMENT FROM EDITOR

Profile – equity farmer Will Grayling

Invercargill student Maria Burnett takes farm safety seriously

Chanelle O’Sullivan talks autumn colours and cheeky stags

Nils Macfarlane discusses employment visa variations

IrrigationNZ has a series of workshops in the wings

Matt Jones looks at sexual harassment in the workplace

Grant Davies discusses sharemarket strategy

Murray Hollings talks about changes to cooling regulations

Fred Hoekstra says nutrition is the key to hoof health

DairyNZ answers common questions on drought survival

CONTACTS We appreciate your feedback. Editor Email your comments to michelle.n@theguardian.co.nz or phone 03 307 7971.

Advertising Email emma.j@theguardian.co.nz or phone 03 307 7936. Post Ashburton Guardian, PO Box 77, Ashburton.

It’s been another tough month for those in the dairying industry, with threats of eco-terrorism and the bottom dropping out of the market again last week. The debate surrounding the use of 1080 certainly stirs up emotions, on both sides of the fence – but in threatening the lives of babies it has hit an all-time low. I don’t get it – there has been no suggestion that either Fonterra or Federated Farmers are universally behind the use of the poison. I’ve met farmers who don’t want a bar of it. While the threats appeared to be the work of some deranged individual, it had the potential to derail the country’s export earn. Even environmentalists opposed to the use of the controversial pesticide have condemned the threats. The fact that whoever is responsible has access to the poison is equally concerning, and should serve as a wakeup call to authorities. Last week’s 8.8 per cent drop in milk prices didn’t do much for farmer confidence either. Even Federated Farmers dairy chairman Andrew Hoggart was taken back, saying all indicators pointed to a supply issue. On a brighter note, it’s certainly been good to see some rain across Mid Canterbury. Even though we need much more of it to shake off this persistent

Michelle Nelson

RURAL EDITOR

drought, it was refreshing to wake up to rain on the roof on several occasions over the past two weeks. While irrigated winterfeed crops have held up, those on dryland farms have been severely stunted by the prolonged dry spell. With winter on the doorstep, farmers will be hoping the clouds can deliver enough water in time to revive them. Other people who have been waiting patiently to get crops in the ground will also be relieved. For months industry spokespersons have been warning dairy farmers to crack on with the business of organising sufficient feed supplies to get through to spring. At this point in time, those who have been putting this off may have missed the boat. There are a lot of cows to feed across Canterbury, and with many herds expected to dry off earlier than usual, winter feed is likely to be in high demand.

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Where there’s a Will, there’s a way Michelle Nelson

RURAL EDITOR

science four years later. After a stint working as a farm consultant Will decided working behind a desk was not for him, and returned to his dairy-farming roots – taking up a job in the Tasman District, before coming to Mid Canterbury as a farm manager in 2009. Across the two sheds they employ 13 people, and looking after them is a priority. “We have good guys that have been here for a while – we’ve had a big push over the past six months to retain good staff,” Will said. “We provide good working and living conditions – and the work has to be challenging and financially rewarding.

Mid Canterbury equity sharemilker Will Grayling at work in the Singletree Farm shed. PHOTO DONNA WYLIE 160315-DW-229

continued over page

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In the midst of what has been described as a shocking year for farmers on the South Island’s east coast, it’s business as usual for Seafield equity sharemilkers Will and Kim Grayling. The couple are not letting drought, low milk prices or 1080 contamination threats get in the way of their business goals. The Graylings milk 3100 cows in five herds through two rotary sheds on 800 hectares near Ashburton, in conjunction with former Fonterra director Jim van der Poel as part of his Spectrum Dairies portfolio. They own 9 per cent of the property, and 30 per cent of the stock. Kim works in the Ashburton District Council’s human resources department four days a week, leaving time to put her skills to good use in the couple’s own business. Will came south from his home in the Hamilton area, to attend Lincoln University, leaving with an impressive academic record and a master’s degree in applied

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From P3 “We are now looking at offering the opportunity for workers to buy some cows and lease them to the business for next season. “They deserve the chance – everyone who works hard deserves it.” “We started here two years ago with 1600 cows in equity, and a couple of opportunities opened up, which we took advantage of. “We bought some land and we took over the farm next door – we wanted to create opportunities for ourselves which would also be good for Jim (vander Poel) – it’s important to us to keep the partnership running smoothly.” Will is confident of riding out the current tight times in the industry, and has managed to keep most of the cows on twice daily milking, at a time when many Canterbury herds have already been cut back to once-a-day or 16 hour rotations. The property is irrigated by ground water, which has held up through the big dry. “We had a very kind spring which can be the biggest pinch around here; if we get a tough spring, we are in for a hard year.

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Looking after good staff, like Tony and C. J. Reyes is an important aspect of Will and Kim Grayling’s PHOTO DONNA WYLIE 160315-DW-291 business.

“It’s been a bit dry and it’s cost us in buying in imported supplements, but generally the production has been okay. At this stage we’ve only got 15-20 per cent on once-a-day milking.” On average the cows are producing around 435 kilograms of milksolids annually, but the goal is 450kg/MS. They have chewed through a lot of palm kernel extrude, and at $260 a tonne, and each cow consuming 3-4kg a day the costs soon mount up, but there’s not a lot of options at

the moment. “You can’t let the last six months get you down, as long as we can produce milk cheaper than other countries things will come right. “It’s a matter of sticking to the plan but also being flexible enough to adapt when you have to.” Plans to dry off completely by May 25 are still on track, after which the bulk of the stock will be wintered off the milking platforms, within 10km from the gate. Calves tagged as herd replacements are raised on a

property the Graylings’ hold a share in, in Southland. They will be trucked back in calf at the end of May. Last spring 660 calves were raised across both farms, but Will hopes to ramp the number up to at least 800, and will be hiring a fulltime calf-rearer for the first time this year. With routine inductions off the table, plans are in place to milk a herd of about 150 cows over the winter this year, to accommodate late calvers. “It’s a way to retain the

good cows, but we will only be keeping the very best of them.” The prospect of life without inductions doesn’t faze the Graylings either. “It’s a good thing they’ve gone – I don’t like them and the staff don’t either, it’s a horrible thing to deal with.” At this point in their career the Graylings are working hard to reduce debt, and have no plans to expand the operation. “We are about at capacity here now, we can’t cut too many corners otherwise we will end up having to buy stock in. “There’s still plenty of room to increase efficiency here though. We’ve expanded very quickly, so now we are concentrating on increased efficiency rather than increased scale.” Will has reached a number of milestones in his career, not the least winning the 2011 Young Farmer of the Year contest. Last year he was one of six young Kiwi farmers selected to join a group of 40 emerging farm leaders from around the world in the Netherlands to participate in the inaugural Rabobank Young Farmers Master Class.

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College student aims for safety

Maria Burnett with her father Graeme at the Realise the Dream PHOTO SUPPLIED award ceremony.

An Invercargill secondary school student is already making inroads into farm safety. Maria Burnett has designed a device to protect tractor operators from the power take off shaft (PTO). The Smart Switch PTO guard is the result of a school project, undertaken at James Hargest College last year. Maria received the NZAS Premier Technology Award for her project, along with six other accolades at the Southland Science and Technology Fair, and was selected to participate in the National School Science and Technology Fair, Realise the Dream. There she gained the Royal Society of New Zealand Peter Spratt Memorial Award and Scholarship. “PTO shafts are a rotating device on all tractors which link the tractor and implement together. “The PTO shaft powers the implement and does this by rotating at fast speeds of up to 16.6 times per second. “There are lots of incidents

where farmers have become entangled in these shafts, often resulting in severe injuries, such as missing limbs, brain damage, spine damage and scalping or in death. “The shield I have created is U-shaped and sits on the tractor master shield, protecting the operator from the most dangerous part of the PTO. Two micro switches are used so if the operator contacts the shield in any way – for example, trips and lands against the shield immediately disengaging the PTO. The idea is that it is used in conjunction with the patented PTO guard which must legally be used in New Zealand.” Maria has grown up on her parents’ farm in Dacre, surrounded by farming activities. “Living on a farm has given me a huge advantage with this project as I’ve had access to my dad’s tractors and his workshop while carrying out my project. Also, my Dad has been my main stakeholder throughout the project, which

is really advantageous as it’s important to know exactly what the clients themselves want. “I’ve also constantly communicated with neighbours and family friends who are farmers or PTO victims.” She was inspired to enter the Southland Science Fair after hearing about her PE teacher’s idea for a sport science related project. After dismissing an initial idea as too time consuming, Maria turned to her father, asking him to identify a problem on the farm. “The first thing he came up with was the danger of PTO shafts. This was really relevant to me because my dad, grandfathers and brother are at risk of serious injury or death when they’re working with PTO shafts and I wanted to find a way to lessen this risk.” A micro switch in the rotary cowshed triggered the concept of a device which would stop the PTO on contact. continued over page

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OBJECTIVES Using young achievers and their achievements to promote science and technology to other young people and the community is one of the most powerful ways of encouraging them and others with potential. ■■ enable the recognition and celebration of excellence and achievement in the area of science research and technological development ■■ provide further learning for these talented students ■■ promote outstanding students for New Zealand and international honours ■■ give scientists and technologists opportunities to inform and enthuse about their work ■■ support scientists and technologists to present their work as champions/role models to the youth sector and their parents ■■ develop and build links with, and networks for, excellent undergraduate and postgraduate students ■■ use our talented students in leading and inspiring others

Above left – Maria Burnett works on her Smart Switch design and, right, the Smart Switch turns PHOTO SUPPLIED off PTOs on contact.

from P5 “There is a hose attached to the rotating platform. After milking has been completed and the platform has stopped rotating the hose is connected to the wall to transfer the milk into the tanks. There is a micro switch which doesn’t allow the platform to rotate if the hose has not been placed back on to the platform, preventing the hose from being ripped off the wall and becoming damaged. I used the concept of this and applied it to the situation I was dealing with.”

Maria’s future plans include marketing the Smart Switch. “I’m ... in my last year of high school at James Hargest College and as the year goes by I’d like to work on promoting my product, Smart Switch, as well as continuing my research,” she said. “I want to carry out more testing ... on stakeholders’ tractors and ask for feedback from their experiences with my product so I can learn what I need to improve. Next year I’m planning to go to university and I’m ... interested

in studying a conjoint BSc/ Law, however, I’m still in the decision process and this seems to change every couple of months.” As a Realise the Dream ambassador Maria has the role of spreading the word about the opportunities she came across by chance. “It was a very spontaneous decision for me to enter the Southland Science Fair because it’s not something students generally do voluntarily, but it’s one of the best decisions I’ve ever made and it’s really

opened doors for me. “Realise the Dream was an all-expenses-paid-for trip worth over $10,000 per student and we were given $500 just for attending. “Besides the money, I’ve gained so many different skills from Realise the Dream including communication skills and the ability to network with others including adults with ease ... “It’s made me realise I want to pursue a science-related career.” The Royal Society of New

Zealand, who manages Realise the Dream are rebranding and renaming the event this year. Realise the Dream – The National School Science and Technology Awards is a national event which acknowledges and celebrates New Zealand’s finest examples of science research or technological development undertaken by secondary school students. It is an integral part of the celebration of science and technology excellence in New Zealand.

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Winter is on the way 8.29pm: It’s getting dark far too early these days, not to mention the distinct autumn chill in the air each morning and evening. Lucky for me I happen to love autumn; oranges, ambers, yellows and crunchy browns, (though with this drought I have seen more than my fair share of crunchy brown) beanies, scarves and time to brush last winter’s mud off the knee-high boots. It also means preserving and homebrewing time around here! Elderberry and apple jam, crab apple and mint jelly, 6l of plum wine in the first stages of ferment and hundreds of figs near ripe! I write this sitting amongst a paddock of at least 60 fallow stags, hinds and fawns on dusk while waiting for the pigs to finish their tea. Why wait I hear you ask? Well I’ve been wondering why two fallow stags have been hanging around within 10m of me while I feed the pigs each evening. At first I thought they must just be getting a bit curious about me and the dog – but no.

Left – A cheeky fellow stag on the hunt for supper. PHOTO SUPPLIED

Chanelle O’Sullivan

FACE TO FACE

It’s not me they are interested in at all. After walking out of the paddock one night last week I confirmed my suspicions by taking up a higher vantage point to watch what goes on. Stag #1 climbs up the pigpoo-pile, scopes out the area and, “pop”, over the 100-yearold limestone pigsty he goes. Straight in, head down and dives into the food trough for a belly full of grain, pig fattening pellets and scraps. What the? Stag #2 pokes his head through too and joins in while others wait their turn! These two stags are certainly in top form and have got so cocky that as I sit in the near dark, they are just 3m away from waiting for

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me to leave. The vizsla pup has decided she is definitely genetically predisposed to be a hunting dog and keeps close watch on them, pointing

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and giving them a wee hurry along when they get too close. Her recall is getting rusty as her hunting instinct grows (watch this, potentially messy,

space!) 8.40pm: It’s lucky I am scribbling away on white paper as everything is quickly tuning into many (not 50) shades of grey. The elk stags are trumpeting in the paddocks behind me, reminding me that the roar is just getting under way, the fawns are calling out to mum like squeaky dog chew toys, the vizsla has given up on chasing stags and has decided to take on the white butterflies and the pigs are finishing their tucker while the stags are still harmlessly circling me. 8.44pm: My page is near unreadable, but this kid-free, husband-free bit of fresh air was much needed. Then “pop” without even needing to leave the area, stag #1 is in the sty, head down enjoying supper. I give up, I’m coming back with reinforcements and I’m going to do my darndest to outsmart the wee buggers.

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Farming Dairy Focus

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Variation of Conditions Looking for a new farm worker? Looking to go to a new farm? Look at variation of conditions! In the dairy farming industry there can be a lot of change and workers are quite often one of them. If you employ staff from another country it is important that you know what changing farms means and what needs to be done. If a migrant is on a working holiday visa then the move will be straightforward as they can move to different farms throughout the currency of this visa. However it is important to note that different countries have different restrictions on their working holiday visa and some countries only allow the visa holder to work for the same employer for a specific amount of time. An essential skills work visa holder does not have it so straightforward and they will have to apply for a variation of conditions or possibly a whole new visa. If the migrant holds an Essential Skills work visa they may be able to vary

Nils Macfarlane

RURAL IMMIGRATION

the visa, but only if they’re staying in the same region and keeping the same job title. If the migrant were to change regions (such as moving from Southland to Canterbury) they must apply for a new work visa. Depending on the position held, and the migrant’s qualifications and experience, you may also be required to show evidence of advertising to prove that no New Zealanders are available for the role. Most of the time advertising would not be required as a variation of conditions only allows the visa holder to change within the same location and same position so the Labour Market test has already been met. Although this is an easier

process then completing a whole new work visa, it will not give the visa holder a longer visa then their original one and would only be valid for the remainder of the currency of their previous visa. By completing a new work visa the new farm would have to show evidence of advertising but would get their farm worker for the whole year. Heartland Immigration

is made up of a strong team of Immigration Advisers who all come from a legal background, and can work on any issues whether it is for farms, or the Canterbury Rebuild. Your Adviser will be with you for the whole visa process from start to end. Heartland Immigration can help out employers and employees with all their immigration concerns, whether it is changing

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Test analysis, mating results and culling By Dairy Business Centre (nZ) LimiteD In late February and early March there are several things happening on the farm; the pasture growth slows down, reducing the available amount of pasture for the milking cows. Milk production is dropping steadily depending on the quality of the pasture available and the quality and quantity of supplements fed. The pregnancy scan is done to see which cows are in-calf or empty. With all these things happening during this period the challenge lies in making the right choices by either reducing stocking rate or feeding more supplements. Because less pasture is available we need to replace this with quantity and quality, minimising the milk production drop as much as possible. Unfortunately that can mean we need a lot of supplements during this period until the end of the season, which is hard on the cash-flow and reduces profitability when fed to low producing cows.

The information we need to make the right choices comes from the production performance. However using the latest herd test information and only looking at production performance is not enough to conclude the potential production of the cows. The information that comes from a herd test can offer so much more than the average production and cell count of the herd. Analysing the combination of all the herd tests in depth

for the season provides a more robust individual performance ranking in the herd. We then can extrapolate the information to obtain a predicted season production for individual cows. We can also look into the decline of each animal to predict which cows have got the most to offer in the coming two and a half months. This is where the results from the herds’ pregnancy scan can be used to further analyse the list of cows to be dried off

or potentially culled. With these strategies we minimise our losses and optimise the profitability of the farming operation. Reducing the stocking rate will reduce the amount of supplement needed and increase the amount of pasture per cow. A better quality feed in the diet means holding a higher milk production in this later stage of the cow’s lactation, reducing the drop in production and drying off at

a higher seasonal production level, which prepares her for greater potential in the next lactation. At Dairy Business Centre we analyse herd tests to show what the production breakdown is in the herd, group them according to their production value, corrected for components so we can evenly evaluate different breeds and calculate their projected production for their 305-day lactation. We identify the cows that need more attention and those that need to go as soon as feed supply is reduced. Evaluate your herd test today to show what can be done to improve the performance in your herd, not just by feeding more but by feeding smarter to achieve the production your cows are bred for. For more information on evaluating your herd tests or our monthly weight targets, please contact the Ruminant Nutrition Consultancy team at Dairy Business Centre (NZ) Limited on 03 308 0094, email office@dairybusiness.co.nz Advertising Feature

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Drought reflections The drought has created a lot of food for thought. To date, IrrigationNZ has identified three key issues. The first is the need to “get on with” alpine water storage. We’ve been banging on about this for months so won’t belabour it here. The point is it needs to be done and soon! Secondly we need to take a look at the water management system in New Zealand. It is dated and clunky when we need dynamic and innovative. Initiatives such as global consents or water sharing arrangements need to become the norm so we can better utilise the available resource. Temporary transfer also needs to be split from permanent transfer and become a real-time transaction. Finally irrigation efficiency is a priority. Irrigators that ran out of seasonal allocation prior to early March need to look at what can help them more effectively use their water;

particularly on the shoulders. Spring 2014 was cold but also dry. Analysis of IRRICALC seasonal volumes for an 80 per cent efficient irrigator show most irrigators should have been hitting their mark in early March. This is the one area we can exert some control over and IrrigationNZ is responding to this need with three free workshops at the South Island Field Days. Come and see us at site 474 to hear practical advice about what you can do to better prepare yourself for future droughts. Soils Essentials workshop will start at 9.30am each day, Irrigation Development at 11.30am and Maintenance of Irrigators at 2pm. And yes they are all FREE! Just turn up on the day. IrrigationNZ is also offering a new members’ deal. Sign up to IrrigationNZ at South Island Field Days and get a membership and irrigation training day combo deal for $315 plus GST.

This includes one year’s membership and a registration for an irrigation manager training workshop, which also includes the Irrigation in a Box resource kit valued at over $100. Another event to watch out for is next month’s OVERSEER workshops. A new version of OVERSEER will be released late April in which the irrigation module has been overhauled. The update will enable the range of irrigation systems and management practices to be better accounted for, which is a good thing. It will, however, cause some pain because nitrate loss numbers will change so we’re urging irrigating farmers to get up to speed with the details. One of the best ways to do this will be attending one of the workshops planned to outline the changes. The provisional dates and venues for these are listed on page 11. Check on the OVERSEER website for confirmed times.

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WORKSHOP VENUES Date Time

Venue

2 April

1-3pm

Lincoln University

7 April

1-3pm

Elwood Function Centre,

Otene Road

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9 April

1-3pm

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19 Centennial Drive

Palmerston North

10 April

1-3pm

Greyway Lounge

Pharlap racecourse,

13 April

Timaru

10am-12pm

Dunedin

venue TBC

15 April

8.30-10.30am

Ruakura Campus Club,

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2 12

Farming Dairy Focus

www.guardianonline.co.nz

Prevent potential harassment issues Rural women were often once confined to housework, but in this modern era they are now working on the land and increasingly running multimillion dollar businesses from the office. Despite the value of women to our agribusiness, do you hesitate when hiring female employees due to possible sexual harassment issues? Perhaps it’s fitting to take a good hard look at preventing any potential harassment complaints on our farms so worries about hiring women can be easily dissipated when recruiting female farm staff. With more and more women now holding agricultural degrees, they are furthering their careers in farming helping to drive our exports that are the backbone of New Zealand’s economy. Women now represent an increasing proportion of the agricultural sector and sexual harassment can be very real in rural workplaces. Employers need to know that this is unacceptable and it can be easily prevented if clear boundaries are set in place at the time of recruitment and

Matt Jones

STAFF MATTERS

during development of staff contracts. As bullying, sexual harassment and discrimination are all illegal in New Zealand you, as the employer, need to take responsibility to ensure your workplace is safe and respectful towards all staff members, including women. So what exactly is sexual harassment? It is any unwanted behaviour of a sexual nature. Under the Human Rights Act 1993 the following types of sexual harassment are prohibited: ■■ Any request for sexual activity together with an implied or overt promise of preferential treatment or a threat of detrimental treatment. ■■ Any physical behaviour, language or visual material of a sexual

“

Women now represent an increasing proportion of the agricultural sector and sexual harassment can be very real in rural workplaces

nature which is unwelcome or offensive. If a female staff member reports to you any sexually offensive behaviour, open talks with all parties need to begin immediately. If found to be at fault, the perpetrator needs to be severely disciplined and the female worker has a right to pursue a personal grievance. For clear breaches of the Human Rights act, they can also approach a union representative. If no resolution is met with their employer or the union they may take their complaint to Mediation or the Human Rights Commission. It is important to note that some female staff may not wish to complain about behaviour they are uncomfortable with. They might want to avoid

confrontation or a potential backlash against them by others by staying silent, just to keep the peace. Farmers have a duty of care to all staff and need to let women know that they can be approached at any time to discuss any problems they have regarding sexual harassment. More subtle levels of harassment can also cause unrest, some male workers may not actually realise they’re offending anyone. A few innuendos and suggestive banter here and there may be just the way they converse with the opposite sex at the local pub! Women in the rural workplace need to speak up if they feel a line has been crossed and notify management immediately. As an employer you may want to revisit your ‘reading’ material floating around

the smoko room, or the provocative calendar on the dunny wall! In this day and age these things now need to be viewed from a new perspective. At all times your farm should be seen to be a professional workplace. It may be wise for your female staff to get extra support by joining a multitude of women’s rural support groups throughout New Zealand. These involve meeting up for networking, friendship, events and fundraising. Others are more focused on farm education and upskilling, and the facilitation of training days and workshops. Agstaff take sexual harassment matters seriously and remind farmers to be more aware that this can become a potential problem in a mixed gender workplace. We advise that you have strict, clear policies and procedures in place regarding sexual harassment issues to help attract and retain our valued female staff. Matt Jones is managing director of AgStaff

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2 14

Farming Dairy Focus

www.guardianonline.co.nz

Get precooling right The warm, dry summer has highlighted the challenge for precooling. The first stage of cooling milk, ‘primary cooling’ uses standing water and is by far the most cost-effective form of pre-cooling. This season, with little or no rain, peak milk volumes have coincided with warmer groundwater drawn from rivers and bores. If warm incoming water sits around 23 to 24°C, which it does around many areas, the resulting milk temperature fall will only bring milk down to around 27°C. Without some sort of secondary precooling, farmers struggle to bring vat milk temperature to an acceptable level by the end of milking. It is possible for farmers to achieve a temperature fall of nearly 30°C entirely through with heat exchange before any cooling from the vat floor has kicked in, but the flipside is that farmers can also risk overcapitalising on precooling gear in preparation for the NZCP1 milk cooling standards.

some form of secondary cooling which will depend an the farm size, budget and any water and power constraints. It is worth noting, just as chiller units need to be sized right to the vat size and the herd size, plate coolers will work best if sized to the right water flow rate. The recommended waterto-milk flow ratio for an industrial plate heat exchange is 2L water: 1L milk; older type plate heat exchange is 3L water:1L milk.

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Farming Dairy Focus

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Spectacular sharemarkets The sharemarkets in New Zealand and internationally have only known one direction over the past few years. In fact the NZX50 index is was up 24 per cent in 2012, rising 16 per cent again in 2013, before growing another 17 per cent in 2014 and 6 per cent already this year. This has seen news of the sharemarket hitting new highs to fall off the mainstream radar, such is its commonality. There are a multitude of reasons for the sharemarketsâ&#x20AC;&#x2122; impressive performance, including the solid, if unspectacular, growth in the world economy. However, the key to the current bull market is the historically low interest rates around the world. This includes central banks setting negative interest rates in parts of Europe, and the United States Federal Reserve setting the federal funds rate at 0.25 per cent. The Reserve Bank has set the New Zealand Official Cash Rate at a historically low 3.5 per cent for the moment (rates were raised from record lows of 2.5 per cent last year).

Grant Davies

A BROKERâ&#x20AC;&#x2122;S VIEW

There are many reasons why low interest rates can push the market higher, including their ability to stimulate growth through increased borrowing, but today weâ&#x20AC;&#x2122;re going to boil it down to the basics. When faced with low interest rates on deposit, investors look elsewhere for returns they deem acceptable. This has seen many turn their back on term deposits and look to the sharemarket for their income requirements, taking extra risks to bump their yield up from a miserly 4.5 per cent on term deposit to 7 or 8 per cent which is still achievable on the NZX. So, if low interest rates have helped to push the sharemarket to all-time highs, what happens

when interest rates start to go up? Clearly, ignoring all other factors, higher interest rates will have a negative impact on the sharemarket. If fact, higher interest rates are seen as such as risk to the sharemarket that often the US sharemarket will react negatively to seemingly positive news as it is this positive news that will one day lead to the Federal Reserve increasing interest rates. Expectations are for the Federal Reserve to do just that by the end of this year. There are many ways investors can protect themselves from the prospect of higher interest rates in the long run. Key among them is diversification, i.e. not having all your eggs in one basket. Increasing your income is all well and good, but protection of capital is all the more important. Along with being diversified, one avenue that investors could have a look at is the slew of resettable fixed interest instruments that trade on the NZX. These instruments come in many shapes and sizes, with

varying levels of risk, but the advantage they offer investors is exposure to higher interest rates should they go up (bear in mind that interest rates are actually expected to go down in NZ before they go up). These instruments could offer a good hedge as they are likely to be one of the few investments that perform in an increasing interest rate environment. This is because they have periodic rate resets so that as interest rates go up so does the income generated from the investment. As mentioned above, these instruments can be complex, so it is important to do your research, talk to your advisor and understand the risks. Written by Grant Davies, Authorised Financial Advisor at Hamilton Hindin Greene Limited. This article represents general information provided by Hamilton Hindin Greene, who may hold an interest in the security. It does not constitute investment advice. Disclosure documents are available by request and free of charge through www.hhg.co.nz.

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Let Bowden Environmental lend a hand Kaiapoi based Bowden Environmental was established in 1997. The company specialises in all aspects of groundwater and surface water consents, effluent discharges and storage, gravel extraction, management plans, bore and aquifer testing, resource management, site investigation, feasibility and due diligence. It has broad experience in council and environment court hearings, compliance and environmental monitoring programmes and reports; and has undertaken several high profile commissioner appointments on behalf of a number of South Island regional and district councils. Bowden Environmental is one of several Canterbury firms working with DairyNZ in the SMP rollout in the region, delivering one-on-one advice to farmers and helping them to create farm-specific plans. SMP templates have been developed by DairyNZ specifically for dairy farmers to meet land and water regional plan requirements.

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Environmental consultant Christine Mawhinney says “we’ve been implementing the plans gradually with farmers. Over the next couple of years it will become mandatory for all farmers to have completed an SMP (or Farm Environment Plan for non-dairy operations)”. “In addition to new clients, we’ve been working with a lot of our existing clients on the

SMP and FEP rollout. It works well as we are already very familiar with their operations.” Environmental Engineer consultant John Talbot says assisting farmers through the resource consent process to achieve a successful outcome is very satisfying. “It can be quite confusing and stressful for people to meet the requirements of the

Resource Management Act and Environment Canterbury, especially now the rules are becoming more complicated, with more assessments required. We have the expertise and understanding to ease them through it.” Bowden Environmental’s other highly experienced consultant, Erin Harvie, says “we also have significant

expertise in field data collection and analysis which is often called on to provide aquifer testing, surface water gauging and water quality testing. When farmers take water from a well, we need to test its capacity and what affect this will have on neighbouring wells. We do a lot of these sorts of tests and calulations.” Although the company works predominantly with rural clients in the south, it also takes on some commercial projects. “One of our recent major commercial projects was to assist engineering firm Uretek with the consents for the redevelopment of the earthquake-damaged Christchurch Art Gallery. This was another interesting project for our team,” says Mr Talbot. Director Maureen Toland manages the company. She has been responsible for the day-to-day running of the consultancy practice since 1998. Advertising feature

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Challenges around regulation changes installed in a limited timeframe to get all farms up to speed and both equipment and installation suppliers do not have the resources to do this quantity of work within the timeframe available.

The changes around the new milk cooling regulations create a number of challenges and considerations and I will run through a few thoughts on the subject.

Changing farmers’ expectations

Milk cooling has been traditionally completed using refrigeration operating on a special pad on milk silos over time and this has always been the accepted way of cooling the milk (in the milk silo). New requirements and techniques necessitate cooling milk as it is flowing through the milking pipes. The cost of this equipment is somewhat higher than that traditionally used as they utilise two sets of heat exchangers to achieve their purpose

Dairy company buy-in

Not all dairy company representatives see the need to utilise these techniques to cool milk and they don’t always look at the bigger picture. In time we believe the farmers

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looking ahead will have a significant advantage over those who have winged it or opted to ‘just achieve’ the new regulations. In addition to quicker milk pull-down times milk quality expectations are likely to be tighter and cooling milk quicker always lowers the risk of grading even where other aspects of the dairy operation are not perfect. Also more new and existing farms will be utilising warm irrigation scheme water in future necessitation much higher refrigeration cooling capacity.

Capital expenditure

Snapchilling prices ranging from 25k to well over 100k are being experienced and while it may not be necessary to spend large amounts of capital

Glycol system.

in many cases it is a good investment. Storage systems cost more than Demand cooling systems although these will sometimes be more economic where there is limitation on the available power supply and the upgrade cost is high. Also, storage will provide maximum opportunity to gain the maximum benefit from heat recovery systems (low cost hot water heating utilising the waste heat removed from the milk). Generally the most costeffective way to cool milk is to

install demand chilling thereby eliminating the in-between milkings’ operational losses.

Resources and production capability

As 2018 is the deadline for compliance with the new regulations and that lower payouts are placing pressure on farmers to avoid expenditure, we are predicting two main issues as time progresses towards this deadline.

Resource limitations

Due to the huge volume of equipment to be manufactured, the limited trade labour available and the lower exchange rate, the installed price of milk cooling equipment is likely to be much higher than at present. Indeed suppliers are already indicating they will be taking more of a piece of the pie as demand increases. Our advice is to get in now as equipment pricing is currently at the lowest level you will see and you can take the time to purchase the most suitable equipment for your own situation. When the bottleneck comes it may be a case of who can install something within a certain timeframe. You need to be in control.

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Two secrets to healthy hooves We all know that having a healthy herd is paramount to good business. There is also the feel good factor knowing that you are looking after your animals. A key part of herd health is the hoof. We all know that a cow with a damaged hoof can spell disaster. So how do we combat this? The answer is to take a holistic approach to healthy hooves. Below are two important points that help avoid lameness. Firstly, nutrition is a key element in the equation. We have all heard the saying “you are what you eat”. Well this is not quite the same with dairy cows, but you could say that the better the food (or nutrition) the healthier your dairy cows will be. This in turn means that your cow’s hooves are also going to be healthier. There is common perception that hoof damage is caused by rough tracks and constant walking to and from the milking sheds. However, we now know that this is incorrect. Hoof damage starts from the inside out - not from the outside in. This is where nutrition comes

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into play. If your dairy cows are in optimal condition then their hooves will be strong and healthy and be able to resist the normal wear and tear of everyday walking. This is not to say that having good, well maintained tracks and sheds doesn’t aid in the prevention of lameness. Research shows that tracks with a higher crown through the middle help to reduce the amount of lameness. A holistic or combined approach is always best. However, the main point is, proper nutrition is very important. The best method of feeding is one that avoids rumen upset. Careful phasing of the herd between feed types will help to avoid this problem. continued next page

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from P20 Secondly, curbing excessive hoof growth is also a key element in the equation. Let’s face it, a dairy cow weighs a lot. Each hoof has to hold a lot of weight. On each hoof the weight burden is spread between the two claws. You can imagine that if one claw becomes higher than the other then the weight will be unevenly distributed -the higher claw will carry more weight. And what happens when that single claw starts to be put under more pressure? It grows even more ... to try and cope with the extra weight. Eventually the higher claw will start to buckle and falter under the extra weight resulting in lameness. This is where hoof maintenance comes into play. We call it preventative trimming. Hoof trimming ensures that both claws on each hoof are even and in the best shape for distributing the weight equally. Without correct trimming lameness can be rampant amongst dairy herds, leading to lots of lost production. In summary it is important to remember that correct nutrition is very important in order to keep the cows in optimum health and to avoid rumen upset. This coupled with preventative hoof trimming will significantly reduce the amount of lameness in your herd.

Left – Uneven claws result in poor weight distribution and eventually lameness. Centre – Trimming can help redistribute weight. Above – Hoof maintenance pays dividends.

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Common questions answered on Extremely dry conditions have hit Marlborough, Canterbury and North Otago. While some areas have been more affected than others depending on the availability of irrigation, most of the dryland winter and young stock grazing has been affected and as result there will be some challenges that farmers will need to manage proactively. Below are answers to questions that farmers have asked about managing through the current dry conditions.

Should I be trying to produce any milk from now to “normal” drying off ? Probably not. Each individual farm should assess and plan their own feed supply and feed demand situation and weigh up the probabilities. Continuing milk production with suitably priced supplement is risky and its profitability is highly dependent on how soon it rains to restore available water levels, and therefore how many days in milk can be

created by using feed grown by this rain. There is now very limited opportunity for this to happen during this lactation. The longer the water restoration is delayed, the more any feed grown (or purchased) will be required to underpin next season’s production. All these decisions must be related to expected cash flow for the next six to 12 months. While there is potential to produce and be cash flow neutral in the short term, can this be sustained through the winter and into next spring?

days brings 21 tonne DM of feed into the feed supply. The belief that empty cows produce more milk than a pregnant cow is a myth. Extra energy requirements for pregnancy are not significant until day 280 (for a July calving cow this is about April 1). Any difference in milk production between empty and pregnant cows is not apparent until day 250 of pregnancy.

When is it too late to go to OAD milking?

Should I be trying to milk my empty cows?

It may already be too late to make any gains in body condition score. Over 50 days only small gains in BCS (0.1) can be expected from OAD even when milking cows are well fed. However, it’s never too late to go to OAD if you have already made the decision to dry off your cows. Switching to OAD milking has the benefits of taking the pressure off cows and staff as well as giving you more time to plan and manage. Somatic cell counts (SCC) can, however, be an issue.

No. At a $4.70 milk price reducing the milking herd size by removing the empty cows is a critical first step towards rebalancing feed supply and feed demand. The feed they would eat can be redistributed to the cows being retained in the herd and compensates you for any milksolids the empties would have produced. Not having 50 cows eating 14kg DM for 30

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If I do dry off, how much do I need to feed my cows until it rains?

At the very least enough to maintain current liveweight (see DairyNZ Facts and Figures P11) and prevent any further weight loss. Each individual farm needs to assess their feed resource and prepare a timeline for restoring BCS before next calving.

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the South Island’s dry summer BCS at calving from 5 to 4.5. This is based on the following:

PHOTO ASHBURTON GUARDIAN

If the feed and cash resources allow for BCS gain to be made using supplements be aware that feeds differ in their efficiency to restore body condition scores. PKE has some advantages over some other feeds in this respect. (see Table 6, P49 of the DairyNZ BCS

reference guide).

What would be the impact of calving my cows at BCS 4.5? It’s estimated to be $38 less income per cow at the current milk price for reducing the herd

■■ An increase in calving BCS from 4.0 to 5.0 increases milksolids production by 12kg/ cow. ■■ Therefore 4.5 BCS at calving = 6kg MS/cow x $5.00 = $30/ cow loss compared with calving at BCS 5. ■■ Plus reproduction impact next mating estimated to be worth approximately $8/cow across the whole herd at current milk price. ■■ It requires 125kg DM of PKE eaten above maintenance to gain 1 BCS. ■■ 125 kg DM PKE landed on farm for 30 cents/kg DM =$37.50. There are additional costs associated with feeding and wastage. ■■ The feed cost of restoring BCS by 1 unit using PKE is close to the benefits that can be gained. ■■ An important principle is to target the feed (and therefore any cost) towards cows where this benefit will be larger, namely those cows likely to calve at less than BCS 4.5. ■■ The benefits will also be greater for rising two year heifers because of their greater lifetime production

potential if you can keep them in the herd for additional lactations.

Should I try to lift protein in the diet of milking cows? If the diet contains a high proportion of low protein feeds (such as grains at less than 12 per cent) crude protein content can drop below the recommended values for a midlate lactating cow of 14 per cent crude protein. Adding in a protein supplement such as soyabean or fish meal may increase MS production; however, even if there is a MS response, the extra milk revenue does not always outweigh the cost of feeding the high protein supplement. With the current milk price, in most scenarios it would be uneconomical to buy in expensive protein supplement. Important factors to consider are the increase in milk revenue and the true cost of feeding the protein supplement (feed price, wastage and non-feed costs).

For example in a research experiment, cows were fed a diet containing 50 per cent summer pasture and 50 per cent maize silage (crude protein = 11 per cent). When 1.8kg of the maize silage was replaced with 1.4kg DM soyabean meal (so that energy intake remained the same), the crude protein content of the diet increased to 16 per cent and milksolids increased by 80g MS/kg DM soyabean meal. However, the increased milk revenue (ie $0.40 at a milk price of $5) and the savings from maize silage (approximately $0.39), did not offset the cost of the soyabean meal ($0.99). Therefore, when it comes to supplementing with protein, profitability depends on: ■■ the base diet being fed, ■■ the protein supplement used, ■■ the cost of feeding the supplement, ■■ any increase in milk revenue.

See: Should I supplement with protein in summer? Inside dairy February 2015, P26 continued over page

Farming Dairy Focus

2 24

from P23

How do I avoid overgrazing (and implement zero grazing)? Overgrazing is defined as grazing below target residual (1500-1600kg DM/ha, or 3.5-4 cm) in summer dry conditions more than once. Zero grazing (a total supplement diet) can be considered where there is a risk of causing damage to the pasture recovery due to repeated over-grazing. For zero grazing identify paddocks on your farm that could be growing crops for the next season and also have shade and adequate water supply. Feed out supplements in these paddocks on a daily basis. A variation from zero grazing is when cows are given access to allocated pasture for limited periods of time and returned when they have grazed the paddock to target residuals. This confines the overgrazing to paddocks that are about to be renovated.

What crop options do I have now for

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winter feed if I’m going to be short? Establishing a crop in the months between now and winter is a potential option but only if it rains soon and the crop can be established while temperatures are still adequate. The establishment opportunity is now very short. Most crops need 60-90 days’ growth before grazing. Cereals (oats and ryecorn) and short rotation ryegrasses can be established during March and in early April. Establishing perennial ryegrass on the milking platform is an option before March 31 (after a crop or sacrifice paddock (see Q6). One advantage of this is that it will continue to provide feed in the spring without any other cost of intervention. Suggested brassicas are: Giant kale (Spitfire, Goliath, Titan) up to March 21.

I’ve made my crop decision. Do I plant now or wait for the rain? Having seed in the ground ready to grow when moisture arrives has several advantages. If using contractors you are ahead in the queue of others

who have waited for the rain event Establishment will be quicker so the crop will produce more DM and have more growing days before winter. This strategy is not without its risks. Germination followed by little rain is a risk. As the autumn proceeds dew and cooler temperatures reduce this risk

Can I feed my fodder beet early or are there issues with withholding periods? It’s best to leave the grazing of already established crops to maximise their growth. While conditions currently may not be ideal for crops, these could quickly change. Grazing early would mean that potentially you could end up with bare ground growing nothing when moisture levels change. A fodder beet crop which is less than 100 days is probably best left to grow. There is one herbicide, Betanal Quattro from Bayer, that we know of that has a 100 day withholding period (ie do not graze stock on treated areas or feed stock for 100 days after spraying).

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How much PKE can be fed to my cows?

PHOTO ASHBURTON GUARDIAN

Although PKE is high in fibre, it contains very little “effective” fibre so you cannot feed an entire diet of PKE. You need to feed some type of forage (ie pasture, silage, hay) with PKE. Milking cows PKE could make up to 60 per cent of the diet, if the remainder is pasture, grass silage, hay, or straw. In general cows, milking or dry, will struggle to eat more than 5kg DM of PKE a day. PKE while containing approximately 18 per cent crude protein, it is low in the amino acid lysine. This means if PKE was fed at more than 50 per cent of the diet, a lysine deficiency may limit milk production. Dry cows 125kg DM of PKE is required to be eaten above maintenance to achieve a gain of one BCS in a 500kg cow. If a 500kg cow is eating 10kg DM/day and the diet is 50 per cent PKE and 50 per cent forage of an equivalent energy value, then 2-3kg of the energy from PKE is being diverted into BCS gain. It will take 42-62 days for a cow to gain 1 BCS on this

diet. Cows gain very little in the first week after dry off and in the last month before calving, so this adds up to about a 90-day period to gain 1 BCS unit. PKE should be used with caution in the weeks prior to calving due to the high phosphorous content (0.6 per cent DM). Although milk fever is caused by many factors, the recommended dietary phosphorous level around calving is about 0.3 per cent DM, so in milk fever prone herds PKE use should be restricted to about 3kg DM. Young stock PKE shouldn’t be more than 30 per cent of the diet of young stock. This will not, however, provide enough protein for growing calves. At least 50 per cent of the diet needs to be made up of reasonable quality forage, with 25 per cent as PKE, and 25 per cent soybean/canola meal mix (to make up protein content). What we don’t know is what may be happening to ruminal development. PKE fibre is poorly digestible, which means it won’t be producing butyrate and stimulating rumen development. We don’t

know if this will lead to a check in growth when animals are returned to another feed or not. We also don’t know if there is any impact on other tissues. Check your water supply A consequence of high supplement diet is the high DM per cent of the diet. Cows need to drink more water. Be sure your water supply is up to it. There are risks of cows becoming dehydrated on some of these diets.

What minerals should be used with supplements? When feeding out high levels of PKE over long periods you may need to reduce the amount of copper supplementation to your cows. Seek advice from your veterinarian before doing this.

Feeding of willows and poplars Poplars and willows planted on farms for soil conservation and shelter are also potential sources of supplementary forage. The objective of this paper is to provide information that assists in the estimation of the

value of poplar and willow forage. The quantity of forage in trees and branches was measured and non-destructive methods for estimating forage yield were evaluated. The edible forage dry matter (DM) of five to10-year-old trees ranged from 2–22 kg DM/ tree. The edible forage yield of poplar and willow branches with a basal diameter (BD) up to 100mm was shown to be estimated from kg DM = 0.04 BD – 0.6. The nutritive values of poplars and willows were found to be similar, but the concentration of condensed tannins was usually higher in willows. Tree bark was found to have sufficient nutritive value to be stripped from trees for its feed value by livestock. Cattle were observed to be able to browse willows to a height of 2m and to eat stems with a diameter from 2.7 to 7mm. The forage value of poplars and willows P. D. Kemp, A. D. MacKay , L. A. Matheson and M. E. Timmins Institute of Natural Resources, Massey University, Palmerston North P.Kemp@massey.ac.nz NZ Grasslands Association, Vol 63 P115-119, 2001 continued over page

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Farming Dairy Focus

from P25

What are my options if I can’t get as many cows as planned to winter grazing? Should I feed them less kg DM/cow or take less animals there? What are my options to fill the feed gap? There’s no one easy answer here. The principle should be to feed the cows to their daily dry cow requirements. This could mean having fewer cows to match the lower feed supply. The question then is what are the options for the remaining cows? How much will the alternative for them cost and how this equates to keeping them and the losses from feeding all cows a bit less. Scenario is winter crop yields reduced by 40 per cent. For a herd of 500 cows this could mean 200 fewer cows on a winter grazing block. These cows might have to be transported to alternative purchased feed for 6 weeks at a

cost of $200/cow (Total cost of $33/week incl transport) = $40,000. If they were kept at the planned grazing and all 500 cows calved 0.5 BCS lighter the expected loss of milksolids would be 6kg x 500 cows = 3000kg MS x $5=$15000 + reproduction losses. In addition it may be possible to purchase additional supplement such as PKE to help restore feeding levels. (see Q5). In this instance it appears to be better to keep the 200 cows and sacrifice 0.5 BCS at calving.

When it does rain what are the options around building up pasture cover? When it rains hold, or lengthen your rotation. Do not speed up just because the grass starts to grow. When moisture is restored pasture plants need time to recover to reach their full growth potential. As much as possible limit the area of pasture grazed per day for the next 30 days to allow a high proportion of the farm to reach its growth potential. This will require a substantial amount of supplement reserved for this purpose.

www.guardianonline.co.nz For example: 30 days x 5kg DM/day of supplement = 150kg DM/cow. This assumes pasture intake is limited to 3-4kg DM/day for dry cows. Initially the stocking density could result in pasture being overgrazed if cows are left on pasture for 24 hours. This is why a separate area for feeding supplements (see Q7 avoiding overgrazing) might be necessary. Regularly monitor the build-up in pasture cover. This will allow fine tuning of the balance between supplement and pasture allocation, and determine if the rotation needs to be faster or slower.

When it rains do I put on nitrogen (N) straight away or wait a couple of weeks? If there is a big deficit in the feed budget then adding moderate amounts of N fertiliser (30-40 kg/N/ha) will be a cost effective, and a speedy way of helping reduce that deficit. Don’t worry too much about the subtleties of how accumulated soil N behaves after a drought. If an N response of 8kg DM to 1kg

N is obtained, then the cost of feed is less than 20cents/ kg DM (assuming N applied at $1.50/kgN). There is an accumulation of soil N during drought due to no N uptake by pasture, no drainage and cows still depositing it.

Despite this, after moisture arrives there is usually a response to N fertiliser (usually a lower response than normal). This response will be worth having from a feed budget point of view as N fertiliser is still one of the cheaper ways of getting extra feed on to the

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farm. If moisture allows take advantage of the higher soil temperatures earlier in the autumn. As soil temperatures decline through autumn there are fewer opportunities for fertiliser N. Applying fertiliser N in the

autumn at soil temperatures lower than 7°C is not good practice. Following good practice is important to the industry as it demonstrates attempting to reduce its nutrient loss to water.

What actions do I need to take after the rain does come? Slow the rotation Pasture plants need time to recover from drought, and restore leaf area to reach potential growth rates.

A minimum of a 40 day rotation (1/40th of the farm) is required for rotation length by mid-April. Use available supplements to help achieve target DM intakes if the area offered still restricts intake. Feed supplement It’s vital to have 100 to 150 kgDM/cow of supplement earmarked to feed when it rains. This is mainly for keeping adequate intake levels while rotation length is increased. The pasture is now in transition from being dry pasture to green and growing autumn pasture. Past experience indicates that this transition time is when cows are most underfed during a drought. Apply N fertiliser Start applying N fertiliser, (30-40 Kg N/ha), especially to pastures that are not expected to be grazed in the next 14 days. In addition apply to paddocks after they are grazed over the next 14 days. Thus after 14 days the bulk of the farm will be covered. For more information on applying N fertiliser see Farmfact: Nitrogen use after a dry summer (7-17) Assess and prioritise pastures

Walk your farm to assess paddock by paddock how badly your pastures are affected and how likely they are to recover. Develop detailed actions for each paddock. For more information on pasture recovery see Farming out of the drought; The brown paddock recovery plan (InsideDairy April 2013 p25). Check your budgets Check and update your cashflow budget and budget for 2013/14 to make sure they reflect any changes resulting from the drought, e.g. higher winter grazing costs and/or cost for additional supplements. Feed budget Complete a feed budget to spring balance date and secure supplementary feed to fill any gaps – review weekly any assumptions already made to keep the budget up to date and to achieve the BCS gain needed or at the very least maintain cow condition. Additional information and resources: Rural Support Trust website Income equalisation scheme – Inland Revenue website MPI Dealing with drought conditions MetService NIWA Climate Explorer

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Farming Dairy Focus

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Cutting costs in a low pay-out season Howard de Klerk

RURAL

There have been a plethora of articles recently warning farmers to cut costs, with particular focus on cutting feed costs. A more responsible approach would be to focus on cost-effective expenditure rather than simply cutting costs. Financial discipline and control is an important part of any business and should not vary depending on milk price. This discipline will be required to survive high levels of volatility which is now part of dairying. For long-term survival, it is essential to develop the most profitable system. Modelling different options is a useful

tool. Chopping and changing systems between years is the worst thing a farmer can do. What makes money in good years usually saves money in poor years, but it may be prudent to do some fine tuning and refine the system. Determining total farm profit is the difference between the selling price and the total cost of production per kg MS multiplied by the number of

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not include interest, which is now the biggest single cost item for the average dairy farmer in New Zealand. The lower the production, the higher the interest per kg MS. Besides interest, a number of other items are fairly fixed for the season. For example, it costs the same to winter a cow producing 300 kg MS as it does a cow producing 500 kg MS, but the wintering cost

lowering costs. The importance of diluting overhead costs must not be under estimated. Consideration must also be given to long-term effects any cost cutting may have on the business. Under feeding cows this season could transfer problems to next season, for example, more empty cows or lower body condition and less milk

If cutting feed costs reduces production, as would likely happen, ensure that the saving will be greater than the lost income, before you “save”

milk solids for sale. Both cost per unit and number of units are important. Using a metric like lowest farm working expenses can be very misleading, as lowest farm working expenses does not necessarily equate to highest farm profit if less milk solids are produced. Farm working expenses do

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per kg milk solids will be 40c/ kg MS cheaper for the higher producer. The same principle applies to other overhead costs. If expenditure is costeffective, simply lowering farm working expenses at the expense of production will be detrimental to the business, as it can lower income faster than

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next season. The focus must be sustained profitability and costeffectiveness, as opposed to cost cutting. Cost-effectiveness needs to be designed into the farm system, starting with growing and utilising as much home grown feed as possible. This determines the optimum

stocking rate and ensures any supplements are used to improve production rather than carry more cows. The feed to milk price ratio and response rates, determines the viability and pricing of supplements. Purchased feed should be economically assessed and bought on cents/MJ of energy basis, considering any increased associated feeding costs. Focus on improving efficiencies and diluting costs. If cutting feed costs reduces production, as would likely happen, ensure that the saving will be greater than the lost income, before you “save”. Your consultant needs to develop a farm system that is financially robust and delivers maximum profit. If your system is optimised annually to maximise your profit, it may just be best to stick to your system and maintain good financial discipline every season. Advertising feature

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Providing accurate pasture management The new pasture meter released at National Fieldays 2013 is highly automated and comes with a state of the art console, which can also be used on C-Dax Smart Control spreaders and sprayers. C-Dax Pasture Meters were commercially released back in 2006 after some refinements from the original prototype, which was designed by a team at Massey University led by Professor Ian Yule. Pasture Meter + packs in a number of additional features and functions over the other two C-Dax Pasture Meter models. Although it carries out the same basic function of measuring pasture, it uses dry bearings, an uprated actuator, and a considerably more feature-rich controller. This provides a lot more information to the operator, such as the ability to display and follow a prior ride trail while also giving paddock, farm, or live pasture covers on the go. Many farmers are time-poor, and this is one area where C-Dax Pasture Meters can help reduce the workload.

Each Pasture Meter from C-Dax has advanced sensor technology, which enables measuring speeds of up to 20 kilometres per hour while taking readings at 200

measurements a second. So not only can you cover more ground, you can measure that ground more accurately and will get the same result no matter who is operating

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the unit, or what the weather conditions are. All C-Dax Pasture Meters are fully integrated with C-Dax SmartMaps. Through SmartMaps,

farmers are able to access imagery of their farm and then draw in their paddocks, view feed wedges, and review application history. Historically this was a costly exercise that often had to be done by a contractor. Farmers have enjoyed greatly increased pasture use using a C-Dax Pasture Meter, and that trend is set to continue as the new pasture meter and high-tech console can also be used on C-Dax spreaders and sprayers. If an area of the farm has been spread or sprayed in a given operation, the machine will automatically shut off when it enters that area; likewise, when it leaves that area it will start up again. Not only does it make spraying and spreading easier, but the new technology will help dairy farmers comply with new environmental rules by recording proof of placement, what was spread (or sprayed), and how much was applied. The Pasture Meters’ price starts from only $3945+gst. Advertising feature

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Farming Dairy Focus

Health & Safety

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Keep curious minds safe Dairy, sheep and agricultural farms are great places for children to grow and develop. It teaches them basics about living from the land and provides an endless adventure playground for discovery and entertainment. Because of the vast amount of land a farm can cover, farm owners face unique challenges not only to keep their workers safe, but also to keep members of the family safe. Children, particularly around the age of three to five, are most at risk due to not having a fully developed sense of fear. Their curious nature mixed with their ability to move means they can be unpredictable with their actions, and should be placed somewhere safe at all times. Young teenagers from age 12 to 14 are also at risk, as this is the age where they begin to push boundaries, without fully understanding potential consequences. It’s important to take a range of safety precautions to protect children from harm, as a farm can contain a number of potentially fatal hazards.

Hazards

Animals can be unpredictable, and their sheer size can harm a child, particularly if the animal is startled. They can also carry a number of diseases which can be passed on to children through contact. Heavy machinery, both in operation and stationary, can be fatal. Other vehicles such as quad bikes, motorbikes and utes can also cause harm. Water holes, irrigation ponds, creeks, rivers and lakes all pose danger to children. Chemicals used in farming operations, including cleaning and maintenance, can cause harm when in the hands of children.

Top tips for creating a safe farm

Children need to have an ingrained respect for the dangers on a farm and this should start at a young age. It’s different for every child, when and how they begin to participate in different activities on the farm. Parents know their own children’s

limitations and how well they can handle responsibility at different ages. •

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Identify hazards with children and set boundaries about which parts of the farm are off-limits. For young children, put in place a safe area, an area they can run and play which is fully enclosed so they can’t run loose around animals and equipment. Lead by example by always wearing a helmet on any sort of bike. Always remove keys from vehicles and equipment and place them in a secure area not able to be accessed by children. Keep all hazardous liquids, powders and chemicals well away from the reach of children. Create a specific area where these can be kept, under lock and key. Teach children to wash their hands after

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playing outside and after interacting with animals. Ensure heavy items, such as tractor tyres, are lying flat so there is no chance they can fall over and crush someone. Where possible, fence off water hazards and educate your children on the dangers of water.

Make it a habit that they take an adult each time they want to visit a creek, and that they never go swimming without permission. All farm injuries are preventable. Being aware of some of the key risk factors for children around the farm is an important first step. Advertising feature

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Agri-food degree opens new doors Developed to meet the needs of an industry decrying a lack of graduates prepared for careers in the agrifood supply chain the Bachelor of Agribusiness and Food Marketing degree (B.AFM) has gone from 20 students in 2014 to 50 students this year. It is one of the success stories at Lincoln University’s Te Waihora campus which has seen good growth in new student enrolments in 2015, both for domestic and international students. Senior agribusiness management lecturer Nic Lees says the degree was a unique course in New Zealand, in that it is an integrated course that includes both commerce and science papers. “The mix of business, food quality and safety, supply chain management and marketing is what differentiates the programme.” Mr Lees, who is the director of Lincoln’s Agribusiness and Food Marketing programme says the degree was developed in conjunction with leading agri-food companies. “They have been saying that there is a lack of graduates prepared for careers in the agri-food supply chain beyond the farm gate. New Zealand has traditionally been good at producing food but there is a lack of expertise in marketing and value adding.” Mr Lees said the degree equips students with a sound

applied knowledge of core business concepts and the unique commercial considerations of the international agrifood industry. Students gain a contextual understanding of the global agribusiness and food marketing sectors. This year 40 domestic students and 10 international students have enrolled for the degree. Around half are from urban backgrounds and two thirds are female. Student numbers are expected to increase even more and the degree will become a flagship programme complimenting the Lincoln Bachelor of Commerce (Agriculture) and Bachelor of Agricultural Science degrees. Graduates will have career opportunities in many areas including food marketing, product development, packaging, sales, promotion, advertising, business development, retail management, brand management, global food security and transport logistics, Mr Lees said. Agribusiness is New Zealand’s largest industry producing 66 per cent of New Zealand’s exports and 18 per cent of New Zealand’s GDP and the largest part of the industry is the downstream processing and value adding activities. These activities are responsible for more than 13 per cent of New Zealand GDP with on farm production responsible for only 5 per cent.

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THIS IS ONLY A SAMPLE OF OUR PRODUCTS. FOR A FULL RANGE OF PRODUCTS VISIT US AT THE FIELD DAYS Crop Storage Specialists Tel:

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