Df dairy focus july

Dairy Focus JULY, 2015

Milking gold Pages 3-5 Synlait area manger Andy Fairweather, farm manager Blair Smith and farm owners Pauline and Barry Quigley are celebrating.

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Farming Dairy Focus

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INDEX

COMMENT

Land values holding

P7

Cutting costs might backfire

P8

Fred Hoekstra, Veehof Dairy Services

P11

Easy meals for the calving season

P12-13

Training the next generation of irrigators

P14-15

Photos from the Filipino mid-winter ball

P18-19

Enterprising Rural Women Awards

P22

Falling dairy price starts to bite

P24

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.

To o s TOTAL SOIL FERTILITY SOLUTIONS

While the figures might be disparaging this year, the message coming through is not.

From bankers to farm consultants, farmers are being urged to weather the storm and think of their farm in terms of a rolling five-year average.

One such consultant told me recently how Chinese businesses budget on a 10-year cycle. They don’t burrow too deeply into one season’s discouragement. That same consultant stressed the need to concentrate on efficiencies – something we are all being forced to do.

Using that model a dismal global trading market becomes not as important as the overall performance of your farm in the medium term.

Sometimes it’s easy to hunker down and shape our mentality around dayto-day running of our farms and how we are going to pay the bills next month.

But many are warning of the pitfalls of shuttering our vision.

While we might want to employ slash-and-burn strategies to input costs, there is almost always inevitably a longer term negative consequence.

We might get through this season – but what will happen next season?

Nadine Porter

RURAL REPORTER

Tweet us @farmjourno

For any farmers struggling to find the right balance between meeting cashflows versus production goals, don’t be tempted to slash spending on advice.

In a year like this one, consultants should be considered as a fixed cost.

Sometimes we just can’t do it all on our own.

Against this PGG Wrightson rural real estate manager Robin Ford sees positivity in how land prices in our region are holding up. He believes we will be the last to slip into recession should that happen elsewhere because, unlike other provinces, our farmers have options on their land.

Mid Canterbury might be swallowing a bitter pill this season but all in all it’s not an overdose and the headache could soon be gone.

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Passionate farmers lead with pride

By Nadine Porter

Nadine.P@theguardian.co.nz

Westerfield dairy farmers Barry and Pauline Quigley are one of Synlait’s newest Lead with Pride Gold Plus suppliers – earning them a premium and the knowledge that they are among the very best at what they do.

Awarded recently, the certification comes 12 months after the couple began accreditation on the Lead with Pride programme on their second farm.

Thought to be the only system of its kind in Australasia, Lead with Pride was launched by Synlait in 2013 and aims to recognise and financially reward certified milk suppliers for achieving dairy farming excellence.

Independently audited by AsureQuality, suppliers must meet and in some cases exceed industry best practice across four pillars of dairy farming including environment, animal health and welfare, milk quality and social responsibility.

Continued P4

You’re not just a number at Synlait, according to Pauline and Barry Quigley.

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From P3 The Quigleys and their 24-year-old farm manager Blair Smith have now received the second level on the programme and will receive a premium of up to six cents per kilogram of milk solids.

They hope to achieve Gold Elite status (the highest level) in 12 months’ time and that will add on up to 12 cents per kilogram.

The couple have come a long way since converting their second generation 320ha beef and sheep farm in 2009.

Irrigation development and the costs associated with it led to the biggest change in their farming career - although not an easy one.

It was to be a difficult entry into the industry with dairying prices plummeting to a forecast $3.50 payout and Fonterra changing the rules thereby virtually eliminating the possibility of the Quigleys becoming suppliers.

Pauline remembers the decision to supply the unproven Synlait Milk in only its second season well.

“Choosing who we would supply to was not an easy decision at the time.

“To share up with Fonterra we would have had to ask the bank for another one and a

soon got their heads around what was required and both say the biggest change was making sure they recorded all data.

Pauline believes the programme has been particularly helpful in the area of social responsibility, especially with staff and employment matters.

Synlait milk supply manager David Williams said while it was the area that generally caused the most disruption, the social responsibility pillar did offer helpful approaches to recruitment, management, training and health and safety.

“It has been a big change to what farmers were doing before and makes people more disciplined.”

And it’s an approach that makes sense, according to Pauline.

“Especially around orientation of staff. When you have new staff there are things you don’t tend to think about that you need to tell them but now we’ve got it written down, ticked off and the employee signs off on it.”

Auditors ensure farmers cross the ts and even talk to staff to make sure employers have met their obligations under the programme.

At the Quigleys’ latest acquisition, a 120 hectare dairy farm with Gold Plus accreditation are (from left) farm manager Blair Smith, Synlait Rakaia south area manager Andy Fairweather and owners Pauline and Barry Quigley.

half million. It wasn’t a good look.”

But a decision based purely on an inability to secure a large chunk of capital has led to them being proud Synlait suppliers, milking 1050 cows, as well as advocates and leaders in the specialist milk programmes the company promotes.

Last year the couple took

on another challenge with the purchase of Vulcanfields – a 120 hectare block with 450 cows just six kilometres from the home farm. It was around the same time that the couple attended initial meetings where Synlait’s Lead with Pride programme was launched.

Putting the two together seemed an easy synergy and

meant systems were correct from day one. Coupled with the promotion of Blair from 2IC on the home block to farm manager on the new acquisition, and an intent to produce A2 milk, the Quigleys were well able to begin the accreditation process.

Although beginning the Lead with Pride system was daunting, Pauline and Barry

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Because of this David believes new Worksafe regulations will not be an issue to Lead with Pride accredited farmers.

By the end of the 2015/16 season Synlait hopes to have 30 farmers working towards or achieving Lead with Pride full accreditation. By the end of this month, 17 will achieve the same Gold Plus status as the Quigleys.

Despite not having a customer base to sell to, Synlait made the brave move to offer the programme and its associated premiums, believing it was the “right thing to do”, according to David.

“I think it was visionary and a bold thing to do…we made an active decision on paying out money that we may not have got a return on. Now we are sure we have customers for this programme.”

Initially milk produced from the Lead with Pride programme has been sold into the Chinese infant formula market but David expects demand to blossom from the United States – where consumers are becoming far more interested in supply chain integrity.

In the medium term he hopes that people in the community will see the Lead

5

with Pride accreditation sign on a dairy farm entrance and recognise the particular farmer referred too looks after their animals, people, milk quality and environment to an excellent standard.

Pauline thinks accreditation will lead to the Quigleys being able to attract great staff because potential employees know that an accredited farm means they will be trained and

treated properly.

It’s been a tough season with a diminishing pay-out but Pauline and Barry Quigley are still passionate about the dairy industry and the company they supply their milk too.

Pauline says she remains proud to be working with Synlait - even in a difficult year.

“You’ve got to stay optimistic and control the

controllables. Just do the best you can do…that’s what Lead with Pride is all about.”

And it’s about profit with data showing the programme has financially benefitted those that have signed on - beyond the contract premium price.

For Pauline it all adds to a mutually beneficial relationship.

“You’re not just a number at Synlait.”

Pauline and Barry Quigley are passionate about the dairy industry.

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Transparency needed in GE debate

By Nadine Porter

Nadine.P@theguardian.co.nz

If genetic modification can ensure better quality food with less fertiliser, chemical and water inputs, New Zealand must consider it but only after our Crown Research Institutes become more transparent, according to a Lincoln University professor.

Animal breeding and genetics Professor Jon Hickford said New Zealanders can’t live in a fortress with their heads stuck in the sand as the issue of genetic engineering (GE) would not disappear.

“We owe it to ourselves.”

The intense discussion surrounding allowing GE in New Zealand has been ongoing since 1999 and was re-ignited recently when Treasury and the Ministry for the Environment called for the Government to relax the rules on GE. Treasury said the rules were costing New Zealand millions and the country was missing out on agricultural and environmental gains.

Prof Hickford said it was appropriate that GE was back on the agenda and he also wanted Government to address the Hazardous Substances and New Organisms Act (HSNO), saying it was overly cautious and poorly drafted.

“It over-litigates the things that are not dangerous and under-litigates the things that are.”

New Zealand has a piece of legislation in place that has been “prescriptive” and an obstacle to any reasoned or sensible development particularly in relation to GE, he said.

“It’s become prohibitive.”

However, the anti-GE lobby has gained traction because New Zealand’s science system

GE could offer dairy farmers increased production through better pastoral systems.

lacked transparency, he said.

“Our Crown Research Institutes (CRIs) cannot really be called public good organisations. They are sufficiently behind closed doors and it drives mistrust.”

Prof Hickford believes New Zealand’s science system has been geared around neoliberal economic values from the Roger Douglas era and CRIs have been geared mainly by making a profit.

“We are still running a free market system driven by profit motive. The problem with that is the general public think they don’t own them any more and the science system is stuck in a rut.”

While some commentators have argued science should be a business, Prof Hickford did not agree and said science should be for the public good.

“We have to be sure the public have confidence that

scientists are working for the benefit of New Zealanders and I don’t think we can say that.”

Science agencies must be able to go under the public spotlight and come out shiny, before the country can consider GE and that currently does not exist.

“We have, more than anyone, gone towards a neo-liberal policy where we think we can capture immediate commercial benefit from science.

“Even the United States has peeled back from that… it’s a New Zealand specific problem.”

He cited examples of where science was working well including in China where the Government has been “throwing money” at science with very few strings attached.

Other countries like Australia and Scandanavia had a good record when it came to public

good science as well, he said.

Prof Hickford believes GE could be specifically utilised to increase production in the dairy industry through better pastoral systems if ryegrasses were developed to have increased energy values and higher resilience to certain diseases.

However current regulations had been unnecessarily prohibitive with the Government being slow, overly cautious and cumbersome in making laws around science and technology.

HSNO was an “ass”, he said.

In the meantime New Zealanders must not deteriorate into “shouting from the ridgelines over the valley at each other”, but any changes to legislation should be led by scientists – not treasury, he said.

“We need to discuss it.”

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Government-owned science agencies need to be more transparent before New Zealand can look at genetic engineering, according to Lincoln University Professor Jon Hickford.

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7

Land values hold, despite payout

By Nadine Porter

Nadine.P@theguardian.co.nz

Mid Canterbury will be the last to go into recession should the economy decline in the face of a poor dairy payout because of the variety of land use options available to farmers, according to a local realtor.

PGG Wrightson Mid and South Canterbury rural real estate manager Robin Ford said land values in the area were “holding up” because the major trading banks had supported dairy farmers and would take them through to next June.

“For the next 12 months Mid Canterbury is extremely stable.”

He believed dairy farmers had enough reserves to farm comfortably at the moment but said if the low payout continued for a third season it would put pressure on farming families and could lead to sales.

However that was not the case this season with dairy farmers that might have been thinking about selling their farm not doing so now unless something occurred beyond their control – leading to a current lack of rural real

estate listings.

Arable farmers on good soils have been holding the market up at present, he said, negating much of the negative affect of the dairy slump.

“Mid Canterbury is very lucky because half of the farms here can do other things. Even on good soils dairy farms could cut 100 cows and put that area into spuds and when it comes right they can go back into cows again.”

Provinces like Otago/ Southland and Waikato did not have the same options and would suffer more than Mid Canterbury in the downturn.

“We’ve got a strong arable base here that makes up between 35 to 40 per cent of sales.”

In 2013, 13 or 14 dairy farms were sold locally, but last year that number had reduced to just three, he said.

However demand was good with Mr Ford having buyers waiting for 100 to 200 ha spray irrigated, rotary shed dairy farm opportunities.

Buyers were looking to spend $50,000ha, he said.

“I have some Southland farmers who have suffered a wet 12 months waiting for the

spring and some opportunities in Mid Canterbury.”

Mr Ford also believed Mid Canterbury may have increased interest from English farmers should the pound continue to drop.

“It’s around 44 to 45 pence now and if it drops to 38 pence we will see them come again.”

Although demand was good, the proposed ECan Canterbury land and water regional plan could have a significant effect on future land values in the area, he said.

“If it gets approved, farmers that are under irrigation schemes like BCI should see their property values firm and they will have an advantage.”

Two grazing properties that sold recently in Mid Canterbury illustrated that point with both fetching excellent prices because they were under an irrigation scheme and would be able to change land use.

“But if you are an individual conservatively farming sheep and crop and want to go dairying, it could be difficult.

You might have a baseline of 12kg/n/ha but you might need 27 to 28kg/n/ha.”

Whereas those on schemes

would only have to meet the overall average of the catchment area, he believed.

“Those on the scheme will have an advantage as the rules stand now…but it’s not in gospel yet.”

Land values are holding up, according to PGG Wrightson Mid and South Canterbury rural real estate manager Robin Ford.

Arable farmers are holding land values up in Mid Canterbury.

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Cutting costs might backfire

By NadiNe Porter

NadiNe.P@theguardiaN.co.Nz

Cutting costs on an ad hoc basis and hoping income is not affected is not a realistic approach to a low milk payout, according to a dairy consultant.

Dairy Business Centre ruminant nutrition consultant Rensinus Schipper said minimising costs can be good as long as it does not reduce income at a greater rate than the reduction of costs.

“There is no point in spending one less dollar if that means you get one less dollar in income.”

Based in Ashburton, Mr Schipper warned farmers that for every action there will be a result.

Not having enough grass for cows to consume can lead to less energy in the total diet, he said, which could make successful mating difficult and leave cows short of energy required to produce milk in the coming lactation.

“Dairy Business Centre has always said that grass down the cow’s throat is the cheapest source of feed and

that is as much about stocking rate as it is about grass grown.”

Farms in New Zealand tended to be overstocked so now was the time to recalibrate in order to achieve the ideal balance between grass per cow and dilution of working expenses, he said.

“In a low milk payout year the need for efficiency and profitability analysis is very important.”

Accuracy was critical and farmers needed to make sure they got the best out of the things they can control.

“We totally understand the coming year is going to be extremely tight on cashflow, but farmers need to remember, for every action there will be a result – good or bad.”

Federated Farmers Mid Canterbury Dairy chairperson Jessie Chan-Dorman recently urged farmers to make sure they have done their cashflow budget and got a “handle” on the critical parts of the budget that works.

“Talking to banks early will help smooth the negative cashflow situation and also

help you sleep at night,” she said.

A sound financial budget should also be accompanied by a sound feed budget, she said.

“Plan early and take action now if you are short.

Communication with your farm staff, grazers and bank are essential.”

Cutting costs can have longer term repercussions, according to consultant Rensinus Schipper.

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9

Balanced approach the key

By NadiNe Porter

NadiNe.P@theguardiaN.co.Nz

Albrecht soil guru Neil Kinsey believes there is more of a push towards sustainable agriculture than ever before but farmers are still making a minimal difference.

The United States soil scientist was in Ashburton last week teaching a large number of farmers how to correct soil fertility problems using the Albrecht base cation saturation theory.

Mr Kinsey said there was “so much more” to be accomplished in terms of sustainable agriculture particularly in learning the reasons for soil and plant problems. “And what you are doing to solve the problem ... if a problem keeps coming up there must be something else that needs to be done. It’s not just a matter of testing for potassium or phosphorus.”

Developed in the United States by Dr William Albrecht from the 1930s to the 1970s, the Albrecht system espouses a balanced approach to soil chemistry. In his research Dr Albrecht tested soils in the

United States that consistently grew the highest quality crop yields and found they all had a similar chemistry of calcium between 60 to 70 per cent, magnesium between 10 and 15 per cent as well as definite levels for nitrogen, phosphorus, potassium and sulphur (N, P, K, S) and trace elements.

Mr Kinsey studied under Dr Albrecht and now talks around the world about the theory, educating farmers on how a balanced soil chemistry can improve productivity and plant and animal health.

He has been coming to New Zealand for five years and has seen a rapidly increasing base of farmers interested in practising the Albrecht principles.

The rapid uptake by New Zealand farmers has been due to famers frustrated at problems they were having under the standard N, P, K, S soil testing system, he said.

“So many people have been told all you need is a simple little programme. That may work when you start out with nitrogen, phosphorus

and potassium until there are limiting factors.”

Mr Kinsey said farmers needed to learn the reasons behind soil and plant problems especially if they kept occurring. “It’s not just a matter of testing for potassium or phosphorus.”

However well-known New Zealand agricultural scientists Doug Edmeades and Jacqueline Rowarth have previously criticised the Albrecht theory.

Mr Edmeades’ criticisms included that plants don’t need sodium and that there was no calcium deficiency in New Zealand soils. He has also stated that our soils are different to the United States, implying the theory would not work the same under our conditions.

However Mr Kinsey said not one farmer in New Zealand had the same soils as each other and many soils varied within their own farms.

“But basic chemistry doesn’t change.”

He said although numbers of farmers implementing the Albrecht system had grown

Albrecht soil guru Neil Kinsey was in Ashburton last week educating farmers on having a balanced approach to soil chemistry.

world-wide it was still a “drop in the bucket” overall – a fact he contributed to farmers’ apathy towards their production.

“Most farmers are not disgruntled with what they are doing. They just figure they are doing the best they can. The places where you get change remains with farmers who want to do better and those that have a problem and want to do something because

they won’t stay in business if they don’t.”

He was impressed by the level of co-operation between farmers and fertiliser competitors in New Zealand and the will to put those conflicts aside to educate themselves and said the farmers who were converting to Albrecht were the “thinkers and doers” in agriculture.

“We feel like we get to work with the cream of the crop.”

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ADVERTISING FEATURE

Less cows, better efficiency and more milk

By Dairy Business Centre (nZ) LimiteD The start of the new milking season is here. The payout presents a stark contrast to last year’s opening price and this year we haven’t got the luxury of favourable retro payments to help the cash flow through the spring and early summer. We have all heard about the lack of cashflow for the dairy farmer this year, but it is how we react and deal with it that will dictate how well we come through these challenging times.

A lot has been said lately about lowering the stocking rate per hectare to help minimise supplement purchases. This is music to our ears at DBC. We have been saying for the past nine years that we should be milking fewer cows but producing more milk. “Less cows more milk” has been our slogan from day one. However it has been hard to get this message across when there has been such financial buoyancy in the dairy sector. A desire to increase cow numbers in order to dilute down working expenses by increasing milk solids per hectare has been a common strategy.

The fact is that increasing stocking rate per hectare puts unfavourable pressure on grass harvested per cow therefore the gap needs to be filled by some other feed source. Hence supplemental feeding costs go up and therefore so do farm working expenses. The crazy thing about the increased stocking rates in previous years is that it hasn’t on average diluted farm working expenses. In fact, in the past nine years working expenses excluding feed supplements have nearly doubled in Canterbury.

From 2006/2007 core costs

(working expenses excluding supplements) have gone from $900 per cow to $1600 per cow. Adding more cows hasn’t diluted anything down.

For every kg DM grass taken from a cow because of competition, it either needs to be replaced by something else, or the cow goes hungry and becomes less efficient at converting feed into milk.

Therefore it is very important to understand how much grass is being harvested per cow and then optimise it with the right supplement, as the choice of supplements is also important.

Much has been made of the cheap palm kernel meal in the market at the moment. The majority of dairy farmers are looking at this supplement instead of using grain based supplements, as they would have in previous years. But be wary of this change. Palm

kernel meal is an excellent grass replacer. When you haven’t got those last few kilos of grass for the cow, put the palm kernel in. This is where it works best. Palm kernel meal in the rumen is very similar to the fibre fill of good quality pasture. Therefore when you have plenty of grass, feeding palm kernel meal is only going to push grass out of the diet.

It has been said by some farmers that they have seen a response in milk yield, from feeding palm kernel. What is more than likely happening here is that the cows may have been underfed in the first place, so adding any extra energy would help lift production. Palm kernel is easy to measure and its DM is very consistent. Grass, however, can vary greatly in the spring, which can make

measuring the amount of grass per hectare and its quality difficult through the season.

As Canterbury farmers, we are lucky to have great access to grain. Grain will lift the total DM intake of a cow, if grass intake is not restricted (if there’s not enough grass add palm kernel) as it does not substitute much grass out of the diet. In a recent trial at Lincoln University a grain concentrate pellet was fed to grazing cows and results showed a response of 140gms of Milk Solid per KgDM of concentrate fed (average for the first 90 days post calving).

So even in a lower payout year, grain at a $0.43 / kg of DM, will still yield a margin over feed cost of 30 cents per kgDM concentrate fed ($5.25 x .140= $0.73). Not to mention the other benefits

from grain feeding such as a better in calf rate.

The “In Calf programme” which is run by Dairy NZ shows that conception increases as the protein in the cow’s milk gets higher. Grain will help increase the protein test in the milk. Also of note when thinking of supplements is the protein to fat ratio of the milk you supply to the factory. You get paid for both protein and fat. The higher the protein/fat ratio the more you get paid for your milk, because you get paid more for protein.

Palm kernel meal usually increases milk fat which will bring down you ratio, while grain helps to lift milk protein and will increase your ratio. So if you have fed grain last year and are going to replace all your grain requirements with palm kernel this year, then be prepared for a drop in your farm’s payout as a result.

Don’t get me wrong, palm kernel has a place, but so does grain even if the price differential is up to $200 per tonne. Our suggestion is to seek advice. This is going to be a very stressful time for many farmers and any money spent on supplements is going to hurt cashflow, so make sure you get the biggest bang for your feed buck.

DBC has invested in its Milk Map software. This is a tool that gives highly accurate financial planning, alongside integrated rumen nutrition budgeting to help clients maximise their grass to make the right supplement choice.

If you wish to discuss your supplement options and what is best for you and your farm call and ask for one of our consultants to come and have a chat about your property.

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11

When does more becomes less?

A new milking season is looming with some farmers having started milking already! The milk price is not looking too good for this season either, so how do we get the best out of our situation?

The answer is quite simple.

Make sure you look after your cows. Do not compromise on animal health and do not compromise on their basic needs - things like food, water, rest, etc.

You may get different advice from bank managers and the like. Some bank managers want you to milk more cows and have less staff.

They see some farmers running four or more cows to the hectare and seem to think that that means everyone should be able to do the same.

Even though this seems to make sense, I don’t believe that this is the right approach.

Milking more cows does not automatically equal more milk.

It may do in some circumstances but if milking more cows means underfeeding them then this will not be of any benefit to

Fred Hoekstra

VEEHOF DAIRY SERVICES

you, and you should not go for it. I have seen too many examples where people are milking too many cows.

So often I drive past a herd of cows not long after milking and there isn’t much grass left in the paddock. If cows are not fully fed they will not produce to their potential, animal health issues will become a bigger problem and lameness will increase. You may not believe this but it is true.

If you or your bank manager wants you to milk more cows then there are other things that will have to change as well.

That may be different for each farmer depending on their situation.

It may mean you have to

Don’t compromise on animal health.

upskill yourself in pasture management or you may have to improve the fertility of the soil or improve grass species.

You may need to get better irrigation systems.

If you don’t know what you can improve then you should not consider milking more cows.

Another way of putting it is that milking more

BY BYLINDSAY LINDSAY

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cows should be a result of better management rather than having to improve management because you want to milk more cows.

I would say that in many cases farmers are better off milking less cows rather than more. I know that there are many more reasons why cows are under producing other than under feeding

but underfeeding is quite a widespread problem.

When cows are not producing to their optimum they are not their most profitable. If they are more prone to animal health issues they become less profitable again.

So be careful when considering milking more cows.

Farming Dairy Focus

2 12

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Meals on the run for busy people With calving coming up, we’ve come up with a few easy, precooked options for meals on the run.

mixture should be thick enough to spoon rather than pour, but add a little extra milk if necessary.

Put dessert spoonfuls into a greased medium-hot fry pan, turning when bubbles appear on top and the bottom is golden.

Serve with golden syrup, maple syrup or honey.

Any leftover mixture can be poured into an airtight container and stored in the fridge for up to three days.

Breakfast

Porridge will keep for up to a week in the fridge, with only one pot to wash – so cook up a batch and heat serving-sized bowls in the microwave.

As a general rule, cook one cup of porridge oats with 2½ cups of liquid – using water, milk or coconut milk, or a mixture of all three. Put the oats in a saucepan and pour in the cold liquid.

Add a pinch of salt, mix and heat slowly.

Simmer for five or six minutes stirring constantly to stop mixture sticking on the bottom of the pot.

Add a mix of dried fruit and pumpkin/sunflower/ linseed/chia seeds, according to your tastes, to the porridge as it cooks for an extra health boost.

Cool and store in an airtight container in the fridge.

Serve with milk or yoghurt, honey or brown sugar.

container in the fridge or freeze.

This easy nutritious vegetable soup keeps well in the fridge or can be frozen.

Lunch

Thawed frozen berries or stewed rhubarb can be added for extra zing.

Porridge can also be made in the microwave, using the same method.

Oatmeal hotcakes are a delicious alternative to porridge. This mixture will also store in the fridge for several days.

This mixture can be doubled or tripled depending on the servings required.

■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■

1 cup of rolled oats 1 cup of milk ¼ cup of flour 2 teaspoons baking powder 3 tablespoons brown sugar 1 egg 50gms melted butter ½ teaspoon salt.

Soak 1 cup of rolled oats in 1 cup of milk for 10 minutes.

Mix in sugar, egg and melted butter, then the flour, baking powder and salt. Stir well to get rid of any lumps. The

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Stock is easy to make, a great way to use up leftovers and freezes well.

Make a stock using bacon or beef bones, or chicken carcasses (all available from supermarkets or butchers).

Put the bones in a large soup pot, pour boiling water over, cook for 10 minutes and discard water. Cover with boiling water again and simmer on a low heat for several hours. Onions, garlic and clean vegetable peelings can be added for extra flavour.

Strain. Store in an airtight

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■■ 1 cup of lentils/split peas/ pearl barley or a mixture of all three. Alternatively premixed soup mixes are easily found.

■■ 5 cups of stock, either homemade or bought. Pour over dried ingredients and bring to the boil and simmer for 30 minutes before adding 5 cups of finely chopped vegetables – any mix of onion, carrot, leeks, parsnip, capsicum etc. Frozen vegetables can also be added. Keep simmering on medium heat until the grains are soft. Add salt and pepper to season.

■■ Serve with toast or bread rolls.

Cheat’s dahl is a great winter warmer and stores well in the fridge. It can can also be frozen.

■■ Soak two cups of dahl lentils in six cups of boiling water, with 2 tablespoons of dried

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■■

■■ ■■ ■■

chicken stock. Alternatively, use three cups of homemade or bought liquid stock and three cups of water.

Put 2 tablespoons of vegetable oil into a fry pan. Add a large onion, chopped, 3-4 cloves of chopped/crushed garlic, 1-2 tablespoons of curry powder depending on taste and 1 teaspoon of cumin seed. Cook over a medium heat until the spices are fragrant. Add chilli flakes or chopped fresh chilli if desired.

Add spice mix to lentils and simmer on a low heat until lentils are tender – about 40 minutes.

Ladle into a soup plate and sprinkle with chopped coriander leaves.

Serve with naan/roti/chapatti bread, found in most supermarkets.

Dinner

Both these recipes can be prepared ahead of time, frozen in serving-sized containers and reheated as required.

This chicken casserole takes just 15 minutes to prepare and will serve up to five people.

■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■

Four chopped carrots Two stalks of thinly sliced celery One chopped onion ¼ cup of plain flour, seasoned with salt, pepper and dry chicken stock.

8-10 boneless chicken thighs Toss the vegetables and chicken in the seasoned flour and place in slow cooker.

Cover with a cup of water or stock and cook on low for 5-6 six hours or on high for 2-3 hours.

About 10 minutes before serving

13

stir through a cup of frozen mixed vegetables and half a cup of cream.

■■ Serve with mashed potatoes or rice.

■■ Cooking rice: Boil two cups of water for every cup of rice – this will give you two cups of cooked rice.

■■ Pour the boiling water in a pot, add salt then the rice and stir once. Boil steadily with the pot lid off for 10 minutes, turn the element off and put the lid on the pot. Allow to steam for 10 minutes.

Try this old-school sausage casserole.

■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■

■■

■■

6 good quality sausages 5 or 6 apples, peeled and sliced.

4 onions, chopped 1 cup each of grated carrot and parsnip ¼ cup of cider vinegar ¼ cup of brown sugar 2 tablespoons of flour 1 tablespoon of mustard powder (optional) 2 cups of vegetable or beef stock Salt and pepper to taste Poach sausages in water until cooked.

Cool, peel and slice into thick chunks.

Toss in flour and mustard powder, add apple slices. Add sugar, cider vinegar, grated vegetables and seasoning.

Put everything into the slow cooker and add 1 cup of stock. Cook on low for 3 hours, or high for about 1½ hours, until apples are tender.

Serve with baked potatoes. Prick washed potatoes with a knife before heating in a microwave for about 3 minutes per spud before transferring to a hot oven (200 degrees) for 1520 minutes to finish. This will save cooking time.

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2 14

Farming Dairy Focus

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Training the next generation to be sm Three new irrigation qualifications IrrigationNZ has been developing since 2012 are now ready to be launched.

The first qualification, Irrigation Performance Assessment, is scheduled for three days in September 2015. This level four qualification has involved a major overhaul of the previous irrigation evaluation qualification, so it is now consistent with the new performance assessment code of practice.

It is particularly suited to consultants and service industry personnel that specialise in identifying and resolving issues with irrigation systems, but also suited to irrigators that want to grow their understanding of irrigation systems.

The second qualification, Irrigation Manager, is scheduled for two days in November 2015. This is a level four qualification designed for workers and managers at the coal face of irrigated properties.

The qualification’s focus is on practical application and on job learning. Those that complete the qualification will be able to schedule and make irrigation decisions that optimise

Andrew Curtis

IRRIGATION NZ

production – in essence become SMART Irrigators.

The Irrigation Manager qualification comes at a time when there is a need for greater accountability. The next generation of irrigators being trained and qualified will demonstrate to the regulator and public alike that the irrigation industry is serious about lifting its game. Becoming SMART Irrigators with increased knowledge and ability will not only lift irrigation efficiency, but will improve the environmental performance, and productive and financial performance of irrigation.

The third qualification, a revamped Irrigation Designer qualification has been split into three training modules, which will run in January, February and

March in 2016.

All three qualifications have been welcomed by regulators and primary industry alike and will further enhance the irrigation industry’s proactive stance on improving performance – the move to SMART Irrigation. Go to our website www.irrigationnz.co.nz for more details and to register.

And don’t forget bookings for the SMART Expo at IrrigationNZ’s 2016 Conference and Expo next April are now on sale. The expo is an ideal opportunity for companies and businesses that have an irrigation focus to showcase products and services to delegates and other industry clients who visit the expo.

Network Waitaki has joined Anderson Lloyd, ANZ Bank and Waterforce as principal sponsors of this event. Our conference programme is now almost finalised with international speakers confirmed. There will be a mix of presentations and workshops all relevant to the issues irrigators currently face.

Make sure you diary April 5-7 now and we look forward to revealing more details of the conference programme soon.

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15

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2 16

Farming Dairy Focus

www.guardianonline.co.nz

ADVERTISING FEATURE

Firstlight brings opportunities to calves Strong demand for quality Firstlight Wagyu beef is driving the company’s efforts to build dairy farmer support for the breed this spring.

Firstlight director Gerard Hickey says market demand for Firstlight grass fed Wagyu is gaining momentum every year as the brand continues to quietly establish itself at the premium end of the beef market.

“We now have our own global sales force in place, with staff in the United Arab Emirates, California and the United Kingdom.”

The Firstlight Wagyu “story” of absolute premium quality, antibiotic free, and grass-fed is meeting strong demand among high income earners in the United States.

To meet that demand Firstlight Wagyu wants to get more dairy farmers to consider using the beef breed genetics through AI in cows that are not being mated for replacements this mating season.

Gerard Hickey says

Firstlight Wagyu supply chain manager Peter Keeling with spring born Wagyu calves.

the company’s offer of a guaranteed price of $150 per mixed sex four day old calf generated from AI this spring with a guaranteed purchase will hold strong appeal as farmers look for means to make the most of their whole calf crop.

“We are keen to talk to dairy farmers who want to generate more cashflow and who

may enjoy being part of an exciting, established premium beef brand,” he says.

Payment premiums are typically up to five times what calves would get as Kiwi-cross bobbies, with collection at four to seven days, and payment within 21.

The breed is gaining in popularity as a means of getting greater non

replacement calf income, and has also been an option for farmers wanting an easy calving breed to mate with their first calving heifers.

Synlait Farms was an early adopter of Wagyu genetics, opting to use Wagyu semen over an entire herd last season.

Gerard Hickey says Firstlight has started to gain a solid foothold in the highly

competitive, top quality Los Angeles beef market, with premium supermarkets like Bristol Farms enjoying strong demand for the beef.

“Not a week goes by when we don’t have buyers or consumers tell us this is the best beef they have ever tasted. It is easy to market a product as good as this,” he says.

To add to the appeal of having higher value calves born next spring, Firstlight is giving dairy farmers who purchase Wagyu semen through Firstlight the opportunity to go into a draw to win a box of high value Wagyu steak.

“We are confident about the opportunities that lie out there in the market, and want to work with the dairy sector, giving farmers the opportunity to share in those opportunities,” says Gerard Hickey.

To learn more call 0800 4 WAGYU. www.firstlightfoods.co.nz

Get added value AI calves from your dairy herd this spring

To get the benefits in your pocket and on your plate.

Using Firstlight Wagyu AI genetics in your dairy herd will deliver high value non replacement calves next spring.

Firstlight Wagyu AI genetics provide an easy calving option with added value non replacement calves for dairy farmers.

0800 4 WAGYU (0800 492 498) info@firstlightfoods.co.nz www.firstlightfoods.co.nz

We have Wagyu AI straws available this spring for mating with Kiwi Cross and Friesian cows and heifers.

Firstlight Waygu offers $150 per mixed sex AI calf this spring.

Sign up between now and September 1 and be in the draw to win (1 entry per 50 purchased straws) a box of high value Wagyu steaks, valued at $500!

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17

3 year visas for all!

This month I have some exciting Immigration policy changes that I want to share with you all.

That’s right! From the 1st of July it will be possible for migrant workers in the Canterbury region to obtain work visas for up to 3 years at a time, even if they are working in what Immigration New Zealand consider to be the “low skilled” occupations.

And it isn’t just a benefit that is being extended to those working on the Canterbury Rebuild, despite that being the driver behind the change in policy. When we say 3 year visas for all, we mean for all.

That means that all truck drivers and caregivers, farm and retail workers, who until now have had to renew their visas annually, can now apply for 3 year visas instead. If you work in the Canterbury region, you can apply for a 3 year visa.

But wait, that’s not all!

Immigration New Zealand have brought in another great change at the same time…any work visas that are issued in Canterbury from the 1st of

Nils Macfarlane

RURAL IMMIGRATION

July will also allow workers to move between employers without varying their visa, so long as they remain working in the same type of position and within Canterbury.

And for those of you already on visas? You can now apply for a variation to remove the specified employer from your visa so that you too can move between employers with ease.

Of course, the above changes don’t affect the requirement to meet all other general criteria required for the granting of a 3 year work visa. This means that you will still need to show the potential to work for a full 3 years, meaning you will still need to present an offer of employment from an

employer in a role relevant to your skills and experience, and that job offer must be for a term of at least 3 years.

You may also need to provide police certificates and medical certificates (as the need for these is determined by your total intended stay in NZ).

And if your employer usually needs to provide evidence of advertising for your type of position, they will still need to do so under the new policy too.

Just one other thing to note…these are only temporary changes to the policy, to accommodate the unique situation in Canterbury at the moment. The above changes will only be in place for the next 18-30 months.

But that is still plenty of time to get your applications in for 3 year visas!

If you want to take advantage of these great changes in policy, get in touch with us now, and we can help you get your variation or new work visa sorted.

Heartland Immigration is made up of a strong team of Immigration Advisers

who also 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 farms,

work visas or even residency.

If you have any questions about your obligations, or those of your workers, feel free to contact one of our team. Immigration can be a challenging and time consuming process for anyone, so take the aggravation out of Immigration and give Heartland Immigration a call today on 0800 INZ VISA.

Nils Macfarlane New Zealand Immigration Adviser IAA License No 201401035

Servicing the South Island Farming Community

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2 18

Farming Dairy Focus

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Filipino ball fosters community ties The Filipino community got together for a talang-gunita in Ashburton recently.

The mid-winter ball and cultural extravaganza was aimed at recognising the efforts of employers, and introducing them to Filipino culture, Filipino Dairy Workers in New Zealand (FDWNZ) project co-ordinator Ida Casipit said.

FDWNZ is based in Ashburton and supports more than 300 members and their families.

The group conducts free immigration and progression seminars, stages productions and organises a basketball league.

It was the first time the FDWNZ group had staged the ball, but members hoped it will become an annual event.

Mrs Casipit said it was an opportunity to thank employers, foster understanding and strengthen the Filipino-Kiwi relationship.

The event also offered an occasion to showcase Filipino talents in Mid Canterbury, with an evening of music, food and companionship.

Photos by Joseph Johnson

Bryan Doyayag and Candice Tao-ey.

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19

Vince Apolinio, Bryan Dalvidau, Mark Bravo, Dillinger Layno, John de Guzan.

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2 20

Farming Dairy Focus

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Refrigeration start up routines Starting up your refrigeration systems is generally a straightforward operation.

Some dairy companies recommend having your refrigeration equipment serviced prior to start up and while there can be faults develop over the off season, certain aspects often can’t be checked accurately and we would recommend also doing a routine service over the main operating period of the season.

Milk silo refrigeration systems

In the absence of a winter service we recommend the following for milk silo refrigeration systems to be done two days prior to storing milk: Put water in the milk silo to cover the agitator paddle.

The water will need to be above 6 degrees Celsius on the temperature display to operate - if not you may need to put some hot water in to achieve operational temperatures.

Switch on the base refrigeration unit (it would

Heat recovery systems/ Mahana Blue

Murray Hollings

COOLING OFF

normally need to be switched on for the temperature to display. The unit should run and pull the display temperature down to around 5 degrees Celsius where the refrigeration unit should switch off (it may overshoot by up to 1 degree - this is normal).

While the refrigeration unit is running, listen for any unusual noises.

Water chillers

Generally it is best to leave these off until there is a reasonable load on the chiller as they will be less efficient (using more power) on low loads and some system types may also be susceptible to frost damage.

Where water chillers have

It’s time to get your refrigeration serviced.

been drained of water over the winter, I recommend they are only re-commissioned after the end of August where any frosts are less severe.

Glycol systems

Glycol systems differ from water chillers in that they are designed to operate at lower

temperatures and in so doing are not susceptible to frost damage in the main cooling circuits.

They may be operated safely and unless they cool the milk silos also, they do not require earlier operational testing as the milk silos will have separate refrigeration units cooling them.

Most heat recovery systems and Mahana Blues will have automatic drains on them and can be operated without the threat of major frost damage. Some earlier models do not have this as the heat exchanger configuration did not allow draining to be effective, although the heat exchangers in these models tended to be more robust than later models. The water supply pipework to all heat recovery systems is vulnerable and for this reason and the fact low milk volumes produce very little hot water we recommend leaving the systems until late August (ideally with the supply pipework drained) before commissioning them for the season.

If you would like some free advice feel free to call us.

Dairycool is a locally owned and operated firm specialising in dairy farm milk cooling products and services

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21

Heartland gains depositors’ trust Heartland Bank has not put a foot wrong lately, upgrading earnings forecasts on numerous occasions. Their third quarter result was their most recent, with the company noting that net profit after Tax for the year will be “at the upper end” of the previously advised $46 to $48 million range. The run of positive results saw the share price hit all-time highs of $1.42 in February; however since then we have seen a 20 per cent drop in the share price, recently touching $1.14.

At current prices Heartland has a gross dividend yield in the range of 8 per cent; fairly attractive in this low interest rate environment. These low interest rates have no doubt helped Heartland’s cause as borrowing is encouraged, and savers are forced to scratch around for reasonable returns.

Heartland have traditionally offered investors higher deposit rates than their banking peers, although, according to their half year result presentation, this margin has dropped from over 70 basis points (bp) in

Grant Davies

A BROKER’S VIEW

December 2011 to under 10bp in December 2014 (i.e. going from a 0.70 per cent premium to just 0.10 per cent). This lower premium suggests higher trust from depositors, as we have also seen retail deposits increase over this period.

The margin over their peers has contracted as Heartland has ticked off many regulatory and capital adequacy barriers. This includes gaining their banking licence (with conditions), having these conditions lifted, and maintaining capital well in excess of regulatory minimums.

The capital adequacy ratios required by the Reserve Bank are part of a wave of new

regulations introduced around the world in the wake of the Global Financial Crisis. These are designed to limit the chances of banks defaulting by requiring them to keep certain levels of equity and reserves.

Heartland sits well in excess of these at the moment, although as we have seen in the past, this is no guarantee of safety. One aspect that could work in Heartland’s favour is its limited exposure to international credit markets. Many larger banks rely on these markets for cheap short term funding, whereas Heartland receives

most of its funding from local term and cash deposits, meaning Heartland should be less affected if international credit markets seize up.

In addition, Heartland has a 10 per cent shareholding in peer to peer lending company Harmoney, as well as investing and looking to grow its Home Equity Release (or reverse mortgage) business which it purchased last year. Both have a degree of execution risk attached, but should help cultivate long term earnings.

With growing earnings and an attractive dividend Heartland is still looking reasonably attractive,

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particularly given the low interest rate environment. The company has not put a foot wrong recently, so is gaining respect in the market, which should help the share price appreciate in the future.

Written by Grant Davies, Investment 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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2 22

Farming Dairy Focus

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Enterprising Rural Women Awards Entries have opened for the 2015 Enterprising Rural Women Awards (ERWA) offering women who run their own rural businesses the opportunity to boost their profiles and gain recognition for their achievements.

“This year is very special as we have a lot of interest in the awards and we’re already fielding enquiries from women keen to enter,” says Rural Women NZ national president, Wendy McGowan.

Last year’s supreme winners, Keri Johnston and Haidee McCabe from Irricon Resource Solutions have come on board as sponsors. They are enthusiastic about the awards and want to encourage other women in rural businesses to have an opportunity to get the benefits that their business has gained since winning in 2014.

There are four award categories in 2015: Love of the Land – for land based businesses.

Help! I need somebody – for businesses providing any type of service, from retailers to agricultural contractors.

Making it in Rural – for

businesses that involve manufacturing or creativity.

Stay, Play Rural – for businesses engaged in rural tourism or hospitality.

To enter the awards, women have to own and operate a

small business with less than 10 full-time equivalent staff, based in a rural area. The business must have been running for at least two years.

If in partnership, women must be an active partner of 50 per

cent or more in the business.

Entries close September 18. The awards will be presented at the Rural Women NZ national conference in Nelson on Saturday, November 21.

Last year’s winners, Irricon Resource Solutions’ Keri Johnston (left) and Haidee McCabe with Wendy McGowan.

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23

Employment feeling the freeze?

A recent survey reports that lower dairy earnings are clamping confidence within the labour market. Will we have to like it or lump it - or is it not so dire in MidCanterbury?

Recent deterioration in employee and employer optimism seems to be more apparent in the key milk-producing regions of New Zealand. The June Westpac McDermott Miller Employment Confidence Index is down to a two year low which has unsurprisingly evoked some despondence from our farm workers and businesses.

Employment confidence fell in nearly all regions but most sharply in the rural ones, including Canterbury, the Waikato, Northland and Southland.

The obvious driver for our fall in regional optimism appears be the sizeable reduction in dairy earnings which has cooled business and staff sentiment in general.

Some also believe that the Christchurch rebuild has hit its peak and is also a

The glass of milk isn’t exactly half full for farm owners either.

Matt Jones

STAFF MATTERS

contributor.

So what’s giving our employees the shivers?

It appears from recently surveyed workers that fewer have received a pay increase lately, the lowest since 2010. Even those workers who had received a wage rise said they had been ‘’pretty modest’’.

Minimum growth in wage inflation due to lower dairy payouts also makes it harder for workers to negotiate wage increases.

Dairy workers are getting more nervous about job security and employment prospects across the board. In light of this, Agstaff are still seeing plenty of employment opportunities locally.

On the other side of the fence though, we have to have some empathy for the farm employers who are equally feeling the pain with lower dairy payouts. It is just sensible business practice for dairy farm owners to hold off pushing the button on pay rises and employing more full-time staff while the financial pressure is on. While the domestic economy may have lost its shimmer, and the dairy industry has felt a serious blow, we need to focus on our strengths and look after the key staff who form the back-bone of our farms.

Are you seeing darkening clouds or greener pastures?

It’s clear that increased negativity has percolated through to New Zealand consumers, and business expectations reflect this.

Agstaff are finding that the

work is still out there, and there is still a lot of optimism from our clients in the dairy sector. We still have plenty of job orders, and maybe it’s

“

or don’t hang around for long. If you can’t offer pay rises, look after your staff by being flexible with holidays and consider enabling them

Dairy workers are getting more nervous about job security and employment prospects across the board.

just that our Mid Canterbury farmers were wise in the way they planned for the inevitable drop in dairy prices.

We feel that the less positive among us are outnumbered by those who still have faith in our industry. Despite global financial challenges I think we will gradually bounce back and start moving towards better times ahead.

How can you work smarter with your staff through tough times?

Make sure you recruit well from the get-go, this saves your business money rehiring new staff that aren’t ideal,

opportunities to upskill and attend new training.

You can also hire shortterm contract staff for your busy times so you don’t have to invest more heavily in hiring full-timers. High staff turnover can damage your bottom line so be sure to look after the ones you have – give them some reassurance that their job is secure so they’re not frequenting job sites!

Feeling the brunt of softening dairy payouts? We can help you work smarter with your farm recruitment.

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2 24

Farming Dairy Focus

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Falling dairy price starts to bite Hundreds of Fonterra employees and thousands of the dairy giant’s farmershareholders were hit with a double whammy last week with news of impending job losses and the outlook of much lower farmgate milk prices.

The co-operative aims to axe 523 jobs in the first phase of restructuring of its finance, human resources and information systems departments, with round two set to start in August.

The news came on the back of the GlobalDairyTrade auction, where prices plunged 10.7 per cent, following on from a 5.9 per cent decline at the previous sale, and continuing the steep slide which started in March.

While farmer optimism has been shored up by hopes of a recovery, last week’s news hit home.

It became clear the reality of free-falling global dairy prices had set in motion two years of pain.

And this will not only hurt dairy farmers – entire districts will suffer.

ANZ bank responded to

Michelle Nelson

RURAL EDITOR

Tweet me @ladyinredbands

the news by revising down its Fonterra farmgate milk price to between $3.75 and $5, well below the $5.70kg/ MS DairyNZ estimates as the break-even point for most farmers.

As a rule of thumb, $1 per kg drop in the milk price equates to approximately $2 billion less income for dairy farmers.

Ashburton mayor Angus McKay said local businesses across the board were seeing a change in spending patterns.

On-farm production would also drop this season with the increased cow cull. Most farmers opted to kill lower performing cows to capitalise on high beef prices and cut

back on farm costs.

Despite all the doom and gloom, Mr McKay doesn’t believe the Mid Canterbury economy will plunge into the negative growth experienced in the 1980s.

Dairying is a significant contributor to the Mid Canterbury economy, but it is not the only arrow in the quiver.

There is a strong small seed industry and the outlook for beef is positive.

In contrast to other parts of Canterbury the district was

also spared the agony of last summer’s drought – thanks to investment in irrigation infrastructure.

Mr McKay said for savvy business people with cash to invest, now would be an ideal time to invest in dairying because there’s really only one way the industry can go at this point.

Political pressure is mounting on Fonterra chairman John Wilson who comes up for re-election as a director at Fonterra’s next annual meeting in November.

Farmers are rightly concerned the co-operative’s dividend has failed to provide a sufficient buffer to absorb some of the impact of the slump in milk prices.

Granted little can be done about international dairy prices, but Fonterra does have control over the manufacturing and dividend-paying side of its business.

Fonterra’s group director of co-operative affairs, Miles Hurrell, said the company’s moves were not confined to a headcount, but rather an end-to-end evaluation of the business to generate more value for shareholders.

The latest round of job cuts would shave up to $60 million a year off the payroll.

Chief executive Theo Spierings said the news had been unsettling for the people affected but the co-operative had to change if it was to remain strongly competitive in the global dairy market.

Whether that change has come in time to ease the plight of Fonterra’s farmer shareholders remains to be seen.

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