Dairy Farmer December 2023

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CONTENTS NEWS 7

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New milk chilling system unveiled in North Otago

16 Milk monitor – Cautious outlook for 2024 dairy returns 24 Western Bay of Plenty dairy and drystock unit transforms to low-input farm 26 Irish-made hoof trimmer does the job for Taranaki farmers

ON FARM 8

A business partnership built on honest communication

FARMING CHAMPIONS 18 Dairy Champion – Mitchell Coombe, the man behind a farm business that runs 13 dairy farms across Waikato

FEATURES 34 Dairy Women’s Network celebrates its 25th anniversary 40 Special Report: Samantha Tennent reports from the International Dairy Federation World Dairy Summit in Chicago

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COVER STORY Return on capital key driver for Waikato sharemilkers

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NEWS

The PAUS that refreshes

By Neal Wallace

After a hard slog, the journey of an innovative milk-chilling system for dairy farms picked up a burst of speed with a special offer for farmers.

I

t took 10 years for an idea that sprouted in a hotel in China to materialise.

It took another eight for Allan Steele to finally see runs on the board.

Steele was installing milkchilling systems on dairy farms that Fonterra owned at the time in Yutain, China, when he started thinking about the role of variable-speed compressors in refrigeration.

A decade ago the first units started appearing in sheds and last month it all came together for Steele’s CoolSense company with the launch of Pay as You Save (PAUS), a joint venture with Fonterra that allows dairy farmers to lease the new variable milk-chilling systems.

The Varicool system uses variable rates of electricity as is required, instead of a constant flow. The fourth-generation coolants it uses replace hydrofluorocarbons (HFCs), which are being phased out around the world.

Steele says the units reduce greenhouse gases by up to 80% compared to older units, and use 30% less electricity.

The system recovers hot water for use in dairy sheds.

In those initial years, Steele began sourcing components to turn his idea into something tangible, driven by the need to replace HFCs with something less environmentally harmful and also aware of the efficiency and versatility of using compressor technology in the refrigeration process.

Steele knew the system had to snatch chill milk to 6degC or lower, then maintain the

DAIRY FARMER

December 2023

CoolSense technical director Allan Steele has spent 18 years developing a new milk chilling system.

“When we built it, we felt we were building the space shuttle.”

Allan Steele chilled milk in multiple vats at a constant temperature. It can chill up to five vats.

Ten years ago the first Varicool unit was built.

“When we built it, we felt we were building the space shuttle,” Steele said at a function launching the PAUS system on Joe and Becky Laming’s North Otago farm in early November.

The key – and CoolSense’s intellectual property – is the background software, which allows the units to function as well as being managed and maintained remotely.

The Lamings installed their first Varicool unit six years ago but added another through the PAUS lease system after buying an adjacent farm a few months ago.

In the 30 days from early October, they saved $1100 in electricity costs. The lease cost of the Varicool units over that period was $1260.

Becky says they hadn’t thought about the impact of HFCs on the environment, but once they learnt about it they were relieved to be using something less harmful.

A bonus is the hot water by-product. They use about 2000 litres of hot water a day, all supplied through the heat recovery system.

Steele says typically electricity savings from the units equate to about twothirds the lease cost.

As the first units started to roll off the production line 10 years ago, every cent they earned was going back into the business. It had to.

“It’s not easy raising capital for a technology company.

Homegrown self-generating capital makes people tired and poor,” he says.

Steele finally got a break.

About two years ago social and environmental investor

Purpose Capital bought a $3 million stake in the business, attracted by the positive impact the Varicool units were having on the environment but also by a two-year exclusive joint venture supply arrangement with Fonterra.

Bill Murphy, the executive director of Purpose Capital, says the link between Fonterra and its shareholders will help promote the installation of the units, which is ideal for farmers and the environment.

“It’s a very strong proposition, which has given us a lot of confidence in the company,” he says.

As the link with Fonterra was bedding in, the New Zealand Green Investment Finance (NZGIF) fund became the final piece of the PAUS project.

NZGIF funds the production of each unit, which investment director Waruna Karunaratne says helps the fund’s mandate of funding technology to accelerate the decarbonising of the economy.

NZGIF recovers its investment from the lease paid by farmers, which is deducted from monthly milk cheques. Farmers have the option of extending the lease when it rolls over or purchasing the unit.

The PAUS arrangement includes full servicing of the chilling units and the safe disposal of old systems.

Eighteen years after Steele began his project, he has about 500 units installed and employs 21 staff.

He hopes to increase production to about 300 units a year. n

7

ON FARM

A fair share Two Waikato couples are proving that, with a shift in mindset, a sharemilking arrangement can be a true business partnership.

Brian Basi and Rachel Bunnik are in their second year sharemilking on John and Maria Numan’s farm in Cambridge.

Photos: Stephen Barker 8

DAIRY FARMER

December 2023

By Gerald Piddock

Honest communication and financial facts underpin the profitable arrangement on this Cambridge dairy farm.

B

rian Basi and Rachel Bunnik are more than just 50:50 sharemilkers for John and Maria Numan.

They are one half of a business partnership with the farm owners that encompasses the whole farming business for both parties.

It’s built on a foundation of open, honest and accurate communication around financial numbers – knowing those numbers and not making any assumptions, Basi says.

“Any decisions that we make are ‘What’s best for the business?’ rather than ‘What’s best for us?’”

It is their second year as 50:50 sharemilkers for the Numans, running a high input farming system that focuses on maximising pasture utilisation firstly, followed with optimal and profitable usage of supplementary feed.

The couple hosted a field day on their farm organised by the Smaller Milk and Supply Herds group, focusing on how they use home-grown feed in their system.

The farm system is typically a high-input System 4, but

last season was a System 5, using 42% of imported feed.

Basi says they use this system for the simple reason that it’s profitable.

The farm produced just over 150,000kg MS last season, above the three-year average of 145,000kg MS. The farm is prone to wet weather and last season was extremely challenging with some areas having to be re-grassed at least four times due to flooding damage.

“Any decisions that we make are ‘What’s best for the business?’ rather than ‘What’s best for us?’”

Brian Basi “The main goal is to provide a good return on capital for us as sharemilkers and for the farm owners as well. As you can see, it’s a pretty nice farm and we were fortunate enough that John and Maria put this up as a sharemilking farm instead of a contract-

milking farm,” Basi says.

Mindful of that, it is important for Basi and Bunnik that the Numans get a return on their investment as it keeps sharemilking as a farm progression tool alive.

They moved to the farm in June 2022, operating it together with Bunnik also working part time for LIC as an artificial insemination technician.

Before that they contractmilked for two years in Putāruru for Dick and Liz Johnson.

The Johnsons’ farm was similar in size, system and herd numbers to the Numans’. It was during the 2021-2022 season that they entered the Dairy Industry Awards and won the Share Farmer of the Year title for Waikato along with four merit awards for 2022.

The couple – both in their mid-20s – saw the awards and its judging as a way to get feedback on their business and goal setting, and to build their networks.

“It was a great journey and although it’s been almost two years since we won the award, it has certainly helped us with our progression and we now assess opportunities

FARM FACTS • Farm owners: John and Maria Numan • Staff: None • Location: Cambridge • Farm size: 74ha effective • Cows: 280 crossbred • Production: 2022-23: 150,108kg MS • Production target: 20232024: 150,000kg MS • System: 5 – 42% imported feed

with a different mindset. It is forever giving back to us and in turn our business thrives,” Basi says.

They purchased 90% of their herd from a large herd in Morrinsville, selecting black-looking cows from

Continued page 10

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Brian Basi and Rachel Bunnik are former Share Farmers of the Year for the Waikato region.

Entering the awards was a way to get feedback on their business and helped with goal setting and building their networks, they say.

a Jersey herd, focusing on cows with a good somatic cell count, confirmation, BW and PW. At the time of purchase, the cows were averaging 410kg MS/cow.

The main attraction of the Numans’ farm was the highinput system, due to the Basis’ understanding of potential profitability and improved return on capital as opposed to just focusing on low cost.

“We understand the value of putting feed into our system and the returns we can generate out of it and making our cows perform all year round.

“Our business goals with what we want to achieve on farm and how we think a farm should run align exactly with what the Numans’ goals are, focusing on total operating profit and sustainability.”

The day-to-day running of the farm is largely left to the couple, who consult the

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“It’s a pretty nice farm and we were fortunate enough that John and Maria put this up as a sharemilking farm instead of a contractmilking farm.”

Brian Basi Numans when required.

The farm system is still very much pasture-focused despite the high levels of inputs.

Farm walks are carried out every 10 days and they use a feed budget to help decide when inputs are used, and how much.

“The bottom line is all driven by pasture first and we aim not to waste anything whether it’s the pasture or the inputs going in,” Basi says.

Those inputs include 5.3 ha of maize grown on farm – yielding 22t/ha in 2022.

Weather damage reduced the yield after it was on track for 26-27t.

They also bring in 516t DM of PKE, 102t DM of imported

The farm system is still very much pasture focused despite the high levels of inputs used, with farm walks carried out every 10 days and a feed budget used to help decide inputs use.

maize, 63t DM of kiwifruit and 24t DM of golden dried distillers grain (GDDG).

All up, the farm used 22.8t DM/ha in 2022-2023 – including 8.6t DM/ha of imported feed.

They use very little fertiliser

to establish their maize crop, preferring to rely on effluent and muck from the feedpad.

This reduces costs, with last season’s crop costing 27 cents/ kg DM in the stack.

The paddocks get sprayed, ripped, power harrowed and

Brian Basi starts preparing a paddock for maize planting. The farm grows 5.3ha of the crops, which it uses for supplementary feed.

DAIRY FARMER

December 2023

planted with 200kg/ha of DAP down the spout.

They also calculate any supplements going into the feed system. If, for example, the budget shows a feed deficit, they will look at what the costs and returns will be in meeting that deficit, Basi says.

“What we are trying to achieve there isn’t maximum profit per cow – because then we could run a lower stocking rate; it’s definitely focused on enhancing the profit per hectare.

“We look at that all year round and that’s what our decisions are based on. We do a calculation and whatever makes the most money, that’s what we go with.”

To ensure they do make money from their supplementary feed, they first ensure that cows reach their residual targets daily when grazing.

They feed maize and palm kernel on the feedpad all year round, with larger amounts of maize being fed through the

Continued page 12

11

Last year, the Numans’ farm had a return on capital of 7.2%, and 9.6% the year before that – significantly above the Waikato average based on DairyBase data, which is 3%.

winter and summer months.

They will also feed out GDDG, but only if they feel the cows have a severe protein deficit.

At the time of the field day in late October, the maize had been reduced back to 0.7kg DM/day per cow and 3kg DM/ day/cow PKE as they try to use pasture as much as possible.

That feed cost equates to 46 cents for the maize and 36 cents for PKE on a per kilogram dry matter basis when 95% is utilised. The cows are also consuming 16.3kg DM of grass a day, which is

IS

budgeted at 20 cents.

“At the moment, there’s $4.66 going into the cows, including grass at 20cent/kg DM, and [it’s] coming out at just under $9.00/cow profit – and with a stocking rate of 3.8, we’re making about $34/ha of profit per day and that’s for the whole business.”

They base their calculations on a $7.15/kg MS payout.

Their cows 24-hour graze the paddocks. Basi says they aim for a pre-graze of around 2800kg DM. From calving to December they try to aim for a consistent

target residual of around 1600kg DM. For the rest of the season, they aim for 1500kg DM and use supplements as a way of looking after their grass if residuals get below that 1500kg target.

For Basi and Bunnik, keeping the grass’s base, where it stores its energy, allows it to re-grow postgrazing – and that’s key.

“It just keeps that little energy battery pack at the bottom of the grass so as soon as it’s chewed off, it can capture the sunlight and bounce back.”

I T T I M E TO

For the first half of the season supplementary feed is used as a tool for looking after the grass and ensuring peak production consistency longer through the spring.

If they followed a more conventional regime of using all grass through this period, Basi says, it would cost them more once supplements are re-introduced into the feeding system.

“On the flipside, it helps our reproduction side too. Empty cows are a huge cost to us, especially as sharemilkers as surplus cows are money, so we try to ensure they are well looked after and get in-calf, especially the heifers.”

Their 95% supplementary feed conversion rate is much higher than the industry average and Basi bases that on being frugal around the feedpad. Their grass utilisation calculation is 80% and last season, the cows ate 11.1kg dry matter per kilogram of milk solids.

To make it work, Basi and Bunnik must always be on top of their numbers because they feel they owe it to the Numans to make sure they are getting a viable return on their investment.

“I just don’t see how we can spend money in the system and not ensure we’re getting a return. It’s just wasting money because every dollar we spend of ours, we’re spending a dollar of the Numans.”

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Brian Basi and Rachel Bunnik purchased 90% of their herd from a large herd for sale in Morrinsville, focusing on cows with a good somatic cell count, confirmation, BW and PW.

saw them having to stand the cows on the feedpad for most of the day because such a high percentage of the paddocks were waterlogged.

The cows were well fed on the feedpad, and this ensured when they went to the paddock at night, they rested rather than looked for food. It also reduced possible pasture damage.

The downside of this policy is that it resulted in higher lameness issues, with 26% of the herd requiring treatment.

However, this is in line with the region’s average over the past 12 months with the wet weather causing major foot problems on many farms last season.

Despite its efficiencies, one potential challenge the farm system may face will be lowering its total methane emissions.

The farm currently emits 14.8t eCO2/ha, well above the

DAIRY FARMER

December 2023

“The herdowning sharemilker is getting a 30% return, and I don’t think its unreasonable to expect them to do a little capital work when they are getting a good ROC.” John Numan Waikato average of 8-8.5t eCO2/ha. However, the farm’s methane emissions per kilogram of milk solids is 7.3kg eCO2, well below the Waikato average.

John Numan chairs the National Federated Farmers Sharemilkers Owners’ section and has been actively involved

in the group’s appeal of Plan Change 1, which has just completed a hearing in the Environment Court.

At the field day, he told farmers of the reaction he got from the judges and commissioners when he was questioned on his submission that despite being an efficient producer, the farm system could potentially get penalised because of its high N surplus of 118kg/ha.

He called this “a kick in the guts” due to the potential erosion-discouragement of substantially profitable systems returning better than the cost of funding. This could potentially reduce progression pathways and encouragement of farm purchases by successive generations.

When the judge asked him to elaborate, he said: “We believed we were good farmers, and we believe we have tried to promote

longevity of staff, growing pathways for other people to get ahead in the industry and provide sharemilking opportunities.”

Changing their farm system would mean a reduction in farm operating profit.

Last year, that return on capita was 7.2%, and 9.6% the year previous, well above the Waikato average of 0-5% across five years as measured

by AgFirst’s annual financial survey of 25 Waikato and Bay of Plenty dairy farms.

It is also well above the Waikato average based on DairyBase data, which is 3%.

Numan has no issue using PKE as a feed supplement.

“We are using a waste product that historically was dumped. Instead, we are taking that and using it to create a food source.

“I’ll be disappointed if,

Continued page 14

13

“We understand the value of putting feed into our system and the returns we can generate out of it and making our cows perform all year round.”

Brian Basi

The feedpad is a key piece of infrastructure on the farm and it is used to feed out maize, palm kernel and GDDG when required.

environmentally, we are not allowed to keep doing what we are doing. If we need to change our system and drop our return on capital, we would have to question ourselves (and I hate to say this): Do we want to keep the land and keep farming if our ROC is not better than the cost of funding long term?”

He does not believe the farm system can be changed and retain profitability.

“That’s the kick in the guts for me because I hope that we can continue.”

The alternative would be hiring a contract milker, which would be a blow to the sharemilking industry where it is increasingly challenging to find good jobs that offer genuine progression opportunities.

Basi backed Numan’s comments while remaining hopeful that new technology around feed additives that reduce methane levels could be a future option.

“If they drop our return, how are we supposed to afford land where Waikato is $55,000-$60,000 a hectare?”

Their whole system approach also helps with their mating performance. Mating

14

goes on for 11 weeks with four weeks of AB using nominated Semex genetics on their cows.

Bunnik does the insemination herself.

Following this they will be inseminating using beef bulls for 10 days and finally they will use short-gestation genetics for the rest of the period.

Last season, the farm had a six-week in-calf rate of 74% and their empty rate was 8.6% without intervention and well below the Waikato average of 17%.

This season they installed

Cow Manager on June 30 to help them fine-tune their system and assist with heat detection of the herd, with mating getting underway at the start of October.

They have still tail-painted the herd as they transition to Cow Manager so they can compare it to their heat detection and monitor the accuracy of the technology.

So far, Bunnik says, they have been super impressed with Cow Manager and the data it provides.

“We have had eight cows

Calving gets underway around July 10 for the 280 cow herd.

that we would not have picked on heat that it’s picked up. It’s a game changer.”

Calving gets underway around July 10.

Basi and Bunnik’s sharemilking contract with the Numans is slightly different to a standard 50:50 contract.

They pay 100% of grazing costs when the calves leave the farm on December 1. It is structured this way so there is a good return for the farm owners.

“We’re still making a 30% return on capital by doing that and we do that by utilising all of the efficiencies in the system,” Basi says.

The agreement also has the option for them to rear more heifers to grow their herd if they wish to move to a larger sharemilking job. This in turn helps grow their equity.

At a 7% interest rate over a 10-year period, if they re-invested their cash and stayed on the current farm, they would be well placed to purchase a small farm similar in size to the Numans’. They aim to shorten this time period by moving to a larger sharemilk position and fasttracking their equity gain.

Numan says the emotion needs to be taken out when looking at contracts and it needs to be looked at from a business perspective.

He shows the prospective sharemilker how their employment affects his business and the return on capital for both parties.

DAIRY FARMER

December 2023

Their herd of 280 cows 24-hour graze the paddocks and Basi and Bunnik undertake a farm walk every 10 days to update their feed budget and monitor growth.

“We need to ensure that the owners are getting a better ROC and while this means that a herd-owning sharemilker might lose 3-4% return, they’re still getting a 30% return on capital for money they’re borrowing at 8%. It’s a no-brainer if you understand finances.

“I’ve encouraged outside-

the-square thinking when speaking to National Feds and the national sharefarming sector for the wider-industry benefit of maintaining a viable use of progression pathways.

Often owners comment that engaging a herd-owning sharemilker is not viable.”

Basi and Bunnik also treat the farm like it is theirs

– an attitude that Numan supports because it means they take ownership of any maintenance issues rather than treating them as not their responsibility.

“The herd-owning sharemilker is getting a 30% return, and I don’t think its unreasonable to expect them to do a little capital work when

they are getting a good ROC,” he says.

It’s that kind of attitude in sharemilkers that farm owners want. It improves their reputation and ensures ongoing employment from farmers and contributes to the ongoing viability of the sharemilking and contractmilking industry. n

THE SECRET

TO MATING Unlock your best mating season 07 280 5798 www.senztag.co.nz

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MILK MONITOR

Spring kicks into gear

By Gerald Piddock

Each month the Milk Monitor delves into the dairy industry and gives us the lowdown on the good, the bad, the ugly and everything in between.

T

he year is winding down, with three more Global Dairy Trade auctions left for 2023 at the time of going to press.

Prices dipped 0.7% following the November 8 auction and 2.7% for whole milk powder, ending the run of four consecutive lifts.

Westpac senior agri economist Nathan Penny says from that perspective, prices were due for a break.

WMP prices had lifted 20% over that period, albeit off a steep fall. Following the November 8 fall, they tempered that lift to 17%.

Penny says there are signs that demand in China is picking up.

Recent economic data has been more positive than expected so this may translate into higher demand over time.

Also, WMP Contracts 4 and 5 (for delivery in four and five months’ time) were 8% and 9% higher, respectively, than Contract 1.

“This is the clearest sign to date that the removal of the 10% tariff from January will boost Chinese demand,” he says in the bank’s Agri Update.

Fonterra left its 2023-2024 forecast unchanged at its midNovember annual meeting – $6.50-$8/kg MS with a midpoint of $7.25/kg MS. This reflects ongoing reduced demand for whole milk powder, although there has been a strengthening in prices recently as supply and demand dynamics improve, Fonterra chief executive Miles Hurrell said in his speech at the meeting.

16

“On the demand side, it is not yet clear whether the stronger demand seen in recent Global Dairy Trade events will be sustained so we are cautious in our outlook.”

Miles Hurrell Spring production has started on a firm note with output up 1.3%.

“New Zealand’s milk collections are forecast to be slightly lower than last season, while aggregate milk growth in key export markets is also expected to be below average.

On the demand side, it is not yet clear whether the stronger demand seen in recent Global Dairy Trade events will be sustained so we are cautious in our outlook.”

He acknowledged that the strong financial result posted by the co-op was on the back of a falling milk price due to reduced demand and that farmers are facing pressure from continuous high input costs.

“On the demand side, it is not yet clear whether the stronger demand seen in recent Global Dairy Trade events will be sustained so we are cautious in our outlook,” he said.

Eyes will be now turning to how dry the country will get through December. It’s been a reasonably decent latish spring so far, with rain coming

along at the right moments to keep the grass growing after the cold and wet winter.

Penny says spring production started on a firm note, indicating it may explain the recent price fall with production up 1.3% compared to September last year.

“Dairy markets previously had been factoring in drought risk on the back of the El Niño weather pattern. In our view, this has been overdone as New Zealand water tables are generally very high and most farmers have ample feed on hand. This will help mitigate or dampen any drought impact. Moreover, we expect ongoing firm production in annual change terms over the remainder of spring,” he says.

There’s also a positive sign for fertiliser prices with price stability expected into the early New Year, albeit with a warning about the conflict in Israel.

Rabobank agricultural analyst for farm inputs Vitor Pistóia says in the bank’s

November update that there is small bearish potential in this market, assuming there is no disruption of supply chains or crude oil prices from the Israel-Hamas war.

“For the next five months we forecast international urea prices to be down 11% in US dollar terms compared to the period between November 2022 and March 2023, with DAP prices down 26% and potash down 41%.”

In NZ dollar terms that amounts to 4%, 19% and 35% for urea, DAP and potash respectively, he says.

But critical to these prices staying low is what will happen in the Israel-Hamas war. The conflict is far from where Israel mines phosphate and potash and there has been no suspension of port activity so far, he said.

“Not only is the fertiliser supply under threat but also crude oil and natural gas and thus nitrogenous fertilisers.

Egypt is a heavy player in this sector. A conflict escalation involving Egypt would flip the market.” n

DAIRY FARMER

December 2023

Continue doing what you do best

You’ve already made great genetic gains. You’ve improved your milk production, built a better herd, and are on track for further improvements.

Now’s the time to keep up the good work.

KINGST_2231_DF_C

Continue driving your genetic gains with superior genetics. Continue knowing you’re making the right selections with GeneMark® testing and keep your data accurate with MINDA® herd records. Continue herd and animal health testing to support your on-farm decisions, and eliminate surprises.

And we’ll continue supporting you every step of the way.

There's always room for improvement

DAIRY CHAMPION

Mitchell Coombe created TCG Agriculture, a farm business that offers staffing and management services on dairy farms where the owners are no longer wanting to run or manage the business, but do not wish to sell.

Farming it out

By Gerald Piddock

A Waikato agri-business offers a one-stop farm management shop for those who can’t, or don’t want to, farm their land themselves.

M

itchell Coombe could have been a dairy farm consultant.

It’s a profession the Waikato-based agri-business owner certainly has the skill set and know-how for.

But most advisers tend to supervise rather than get involved in the day-to-

18

day management of a farm business, which he enjoys.

Instead, he created and founded TCG Agriculture, a unique farm business that offers staffing and management services on dairy farms where the owners are no longer wanting to run or manage the business, but do not wish to sell.

“I like to be in the nittygritty, get involved in the operational stuff and see the results – and so does my team, they like to get a positive result,” he says.

He says TGC brings professional staffing and management to farms at scale while providing progression pathway options to contract

or sharemilkers that they may not have necessarily had.

He established TCG Agriculture in 2016-17.

“I saw a need in the industry – we established a name for ourselves, and it grew from there.”

Today it runs 13 farms, ranging from 140-cow herds to those of over 1000,

DAIRY FARMER

December 2023

TCG Agriculture employs staff across its business, including farm support worker Hagen Penny seen here speaking with Coombe.

supplying Fonterra, OCD and Tatua across Waikato and Bay of Plenty.

The farms vary both in system type and business arrangements, and produce an estimated 1.4 million kilograms of milk solids.

Coombe works out of one of the dairy farms his business supervises, a Tatua-supplying farm that is owned by a family trust.

From there, he runs a team of 19 full-time staff, not including contract staff or farm staff who were already employed by the farm owner when TCG was contracted in a supervisory role, such as contract milkers or dairy assistants.

His grandparents ran a farm

DAIRY FARMER

December 2023

in the Morrinsville district that has been passed on to his uncle. As a child, he spent many hours, weekends and holidays on the farm despite his parents not being farmers themselves.

After school he did an OE and returned to New Zealand, working as a contract milker.

For the next four years he combined dairy farming with being the chief executive of a flying school before setting up TCG. He started noticing an increase in farms where the farm owner was getting too old to run the farm and there was no natural succession plan because their children or relatives did not want to be involved.

Many of these farmers did not wish to sell up – they wanted the family to remain attached to a million-dollar asset they have worked so hard to develop. But in many cases, the children had established careers outside the farming industry and had no interest in taking over.

Often, they are small-scale

at around 80-100ha with infrastructure issues. The owner is debt-free but is reaching or is at retirement age and is looking at options.

TCG runs the farms in a variety of different ways, depending on the farm owners.

“Here I get paid effectively to manage everything. We employ the staff, we own the machinery, we do the rostering and we get paid a fee to do so.”

In some cases where there is an elderly owner, TGC enters into a lease on the farm and runs it as such with a manager or contract milker employed

by Coombe.

In others, including the farm Coombe lives on, TGC

is paid a management fee and employs all the staff in a system similar to contract milking.

That farm is a $30m asset, but none of the trust members have any interest in running the farm on a day-today basis, he says.

“Here I get paid effectively to manage everything. We employ the staff, we own the machinery, we do the rostering and we get paid a fee to do so.”

The third option is farm supervision, where they get paid 25 cents for every kilogram of milk solid produced.

On the smaller farms, Coombe looks at instigating an equity partnership with the farm owner by employing a manager.

The manager is also given skin in the game via options to build equity to allow for industry progression, such as the opportunity to buy cows.

“We’re trying to bring young people up the ranks and

Continued page 20

19

“We’re trying to bring young people up the ranks ... we’ll try and leverage some equity for them and the chance to raise some capital.”

Coombe lives and works out of a Tatua-supplying farm that TCG Agriculture runs with dogs Daisy and Buddy (not shown). The farm is one of 13 the business runs across Waikato and Bay of Plenty.

instead of them having this massive wall of banks saying ‘No’, to every young farmer that doesn’t have Mum and Dad backing them, we’ll try and leverage some equity for them and the chance to raise some capital.”

There are farm owners out there struggling to wrap their heads around the reality of the farm environment planning now required for farming, he says. Employing that young manager who understands this compliance de-risks the farm.

Coombe keeps in touch with the farm owners on all of the farms via monthly reports that assess all of the farm’s operational issues and aspects, including production, animal health, human resources, effluent and presentation. He also manages the relationship between the farm owners and the manager or contract milker.

Inputs such as supplementary feed or fertiliser are set as part of the farm’s annual budgeting.

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Anything on top of that, Coombe will speak to the farm owners, who make the ultimate decision. This usually occurs if there is an issue such as a drought and extra feed is required across the farms.

In seasons such as the current one, where an El Niño summer is expected, the farms plan accordingly and have a good policy and budget in place, he says.

“You then know where your limitations are.”

He also meets on farm with his staff semi regularly to discuss any operational issues. Over the busy period of calving, his PA turns into a full-time baker and food delivery driver to support the farm staff, taking on the role of “Camp Mother”, he says.

“She’s very instrumental in the mental health check-ins.”

In situations where the milk price falls, such as the current season on the lease farms, TCG takes a financial hit because the lease farm arrangements have the farm owners ensured a guaranteed income.

It is demoralising for those farm managers whose efforts are not being adequately rewarded, he says.

On the lease farms, he sits down with the senior management teams and works through a plan and a budget for those farms.

On the supervised farms, he meets with the owner and together they work through a budget.

If it gets to the stage of having to meet with the farm’s banker, that is what they do and that relationship management sometimes extends to those conversations, he says.

He has also helped out the Rural Support Trust on occasion. On one such occasion, the farm owner had dementia and the contract milker had walked off the farm.

The trust, along with the farm’s adviser, asked if he could step in and keep the

DAIRY FARMER

December 2023

farm going and ensure the cows were milked over the short term while they found a solution.

“On those occasions we have provided emergency farm management because we have a big team.”

The experience taught him the necessity for farmers to have a “what if” plan.

“A lot of farm owners have heart attacks or break legs and we are finally getting there with health and safety, but we are not with contingency plans.”

That plan could be using the services of a company like TCG, or be as simple as having an agreement with a neighbouring farmer to manage the farm if they fall ill.

Such plans were utilised during the covid-19 lockdown but Coombe believes they have to be part of any farm business. Such a plan is more of a farm continuity plan than a succession plan and is becoming a prerequisite for banking relationships.

“A lot of farm owners have heart attacks or break legs and we are finally getting there with health and safety, but we are not with contingency plans.”

“I have two businesses where owners are at that stage of life,” he says.

He also has stepped in when a farm owner has mental health issues, saying they were burnt out and needed a break from farming.

“It was awesome that he made the phone call because a lot of people don’t.”

It was a story with a good ending after the farmer came back after a two-week

Continued page 22

Mitchell Coombe and Buddy check out the herd on the dairy farm near Morrinsville he works out of.

break and happily continued farming.

These plans are also needed on farms where the sons or daughters were not interested in taking over the business.

On the trust-owned farm where he lives, the trust members have five children between them, and none knows how to operate the farm.

“That’s a danger point for any business,” he says.

A large part of his role is also relationship management between the farm owner and staff. TCG puts systems in place that bring that ownermanager level up so both are happy, he says.

“That’s what our suppliers actually want, for these to be professionally run businesses.

“I say to every farm manager, ‘You are the CEO of a multimillion-dollar company running this farm – act like it’.”

TCG’s services are open ended. If a farm feels it no longer needs them, it can opt out, he says.

“To us that’s never a problem because these

22

farm businesses are always evolving.”

At the end of this season he may be exiting an iwiowned farming trust after he was employed to bring some stability into the farm business.

“We have been there three seasons and spent almost a quarter of a million dollars on infrastructure and now they are at the point where they can employ a sharemilker.”

This was always the trust’s plan to help get whānau into

the farm progression journey.

At the same time, TCG’s door remains open for them, he says.

“It would be a really good outcome for us. We have done our job and made some money over the three years.” n

Coombe keeps in touch with the farm owners on all of the farms TCG Agriculture operates via monthly reports that assess each farm’s operational issues and aspects including production, animal health, human resources, effluent and presentation.

DAIRY FARMER

December 2023

NEWS

Battle stations The struggle against the devastating pest that is fall armyworm has entered a new phase.

A

co-ordinated effort from industry and farmers will be needed to minimise the impact of fall armyworm in New Zealand.

Nations that are succeeding in beating back this devastating pest use two key strategies.

Firstly, they have designated bodies devoted to examining and testing options and disseminating key information to farmers.

The other strategy is the widespread involvement of crop growers, the Foundation for Arable Research’s Ashley Mills says.

Mills has been given the job of co-ordinating the fightback.

One tool that is in development to fight fall armyworm (FAW) is predictive technology that would alert farmers of FAW’s arrival.

Mills says the modelling needed to alert farmers is still being built.

The crucial thing required is data on the ground – the predictive system runs on information consistently supplied by farmers.

“In countries that are

A united approach from farmers and industry will be needed to tackle fall armyworm.

winning the war, farmers have bought into the ‘We’re all on the same team’ idea.

“Their growers have purchased lures and strategically placed them around their crops to trap moths – that’s Part 1. Part 2 of their success is that these farmers regularly crop-scout and check their traps.

“When they discover larvae and moths, they report their data to a centralised body that runs the numbers through predictive modelling software. It’s like weather forecasting. If enough of our farmers consistently do this, the modelling software we possess can create predictive maps of where the pests are heading and the timeframes

in which they’re likely to land.

“Monitoring isn’t the entire answer, but it’s absolutely crucial if we’re going to fight back.”

There also needs to be a united approach from farmers, Mills says.

“We’re reaching out to farmers because having a network of pheromone traps down the length of the country allows us to take captured moths as data points. The more data points we have, the more accurate our prediction model will become, which will help all New Zealand growers.”

If FAW is found on a crop, the options for farmers are not straightforward.

There are insecticides that

have been effective against FAW around the world, but certain strains of the pest have developed resistance.

Mills says this is another reason for widespread trapping and data collection.

“When a farmer traps a moth and submits the data, we’ll seek to identify the species and match it to its origins. If we can do that, we’ll be able to see what resistances it has acquired along its spread, and that will help us avoid using impotent products.”

Other defences being developed are biologicals, a range of species-specific viruses that can infect FAW larvae and be passed on generationally.

Mills is also hopeful biologicals could play a vital role in keeping FAW under control.

“The thing to grasp is that there is no silver bullet, no single weapon that will protect New Zealand farmers from fall armyworm. My job is to co-ordinate an army of good people and show them a range of resources to fight the good fight.” n

NEWS

Fewer cows, brighter farm future

By Richard Rennie

This Western Bay of Plenty dairy and drystock unit – in a particularly sensitive part of a sensitive catchment – has undergone a transformation in the past three years.

C

utting back your milking herd by 40% in two short years may not be for the faint-hearted, but it is a leap now starting to pay dividends for Pongakawa couple Ann and Will Nettleingham.

The couple’s Western Bay of Plenty dairy and drystock unit has undergone a transformation in the past three years. That is from a high-input farm system pushing hard on 250ha of country that includes about 60ha of Land Use Capability (LUC) 6 with slopes over 30 degrees, some facing in a southerly direction.

They opened their farm up for some close scrutiny on a field day run through the Wai Kōkopu catchment group, a farmer-led initiative that covers 35,000ha of land between the Waihī estuary and the hill country separating Bay of Plenty and Rotorua Lakes district.

As members of the catchment group, the Nettleinghams are in the midst of a land use transition held up as an example of how such moves can be made to lower farms’ environmental footprint in the catchment, while they still remain economically viable.

“We were milking twice a day, over two cows a hectare, no youngstock and the only environmental pressures all those years ago were limited to having a resource consent

24

The Nettleinghams say the Wai Kōkopu catchment group has helped them set their farm business on a more sustainable pathway.

for your effluent discharge and keeping stock out of waterways. There was no limit on nitrogen, and ‘more milk’ was the catch cry,” says Ann Nettleingham.

Over the years the stocking rate increased and nitrogen was used to fill feed holes on country that was very susceptible to summer dry conditions.

“It worked when the planets lined up – it required a high payout, rain, and good interest rates. It was high pressure a lot of the time, on the cows, the people, and the environment.”

Five years ago an unplanned move to oncea-day milking in springtime prompted them to re-evaluate the farm operation, and take a more holistic view of how

they could continue in a more sustainable fashion.

They were introduced to the Wai Kōkopu catchment project. It now has 69 dairy farms and 220 orchards in its catchment area, which drains into the environmentally degraded Waihī estuary near Maketu on the coast.

“The Wai Kōkopu project really started us on a journey and a heightened appreciation of what we could be doing in our environment,” says Ann. Their farm is in a particularly sensitive part of a sensitive catchment, alongside the Pongakawa River, one of three that flow into the damaged estuary.

With about a quarter of their farm on steep land

classed as fragile LUC 6, they could see the benefits of retiring that country and just focusing on the higher quality top and valley country for milking.

Wai Kōkopu operations manager Alison Dewes says the steep, vulnerable land was only harvesting about half what the better flatter land was doing.

“They knew that as a result they would to better to constrain their milking platform to probably about two-thirds of the area, make more profit, have it easier on the cows, the people and themselves and at the same time retire that most vulnerable land, which was going to help the estuary and the Pongakawa River.”

Drawing on Wai Kōkopu’s access to a range of experts meant they could use the skills of long-time forester Graham West to help determine the “right tree in the right place” within the boundary.

This now includes 32ha of pine, 8ha of redwood, 8.5ha of planted native and 18ha of existing native, in total 67% or 20% of the farm’s total area.

West’s input has meant the pines have been planted in a more aesthetically pleasing contour-matched pattern, in contrast to the ridge-tovalley approach commercial foresters usually adopt.

He says were it not for constant government meddling and adjustments

DAIRY FARMER

December 2023

to the Emissions Trading Scheme, more farmers would be inclined to pick up on plantings the way the Nettleinghams have.

The natives have been planted using the “Timata” planting method, which emphasises good ground preparation, intensive weed control and planting forestry

grade mānuka or kānuka at lower-than-usual densities of about 2500 stems a hectare.

This is about a quarter of the usual density, lowering the cost of planting and encouraging rapid growth, subject to good ongoing weed and pest control.

With the valley milking areas now very clearly defined

The Wai Kōkopu catchment group includes some well-known names leading farm environment transitions. From left, BoP farmer John Scrimgeour, farm environment consultant and vet Alison Dewes and Katikati farmer John Burke.

SUPER

DEAL

against the fenced tree areas, the couple say they are aware of the shading effect the pine plantings are likely to have in coming years, and the impact this may have on future milking viability for those paddocks.

Their future planting plans include more native plantings.

Far more frequent sightings of native birds including the native falcon is a strong incentive, says Ann. “We have been dropping the cow numbers from over 700 to 450, and basically reinvesting the cow dollars back into the trees.”

Economic modelling by agricultural economist Phil Journeaux shows the transition will deliver a positive outcome.

Total milk solid production drops from about 215,000ha off the original 308ha and 740 cows to 154,000kgMS off 238ha, milking 450.

Against the original milking platform, average earnings before interest, tax and depreciation is up 33% a hectare to $1359, while greenhouse gas emissions have been modelled as declining by 33% to only 5.2t/ ha. This compares to most systems emitting about 12t/ha.

Similarly, nitrogen losses have also dropped, down by 35% in leached N per hectare.

Dewes says the Nettleinghams have managed to define their farm’s “sweet spot”, stepping back from the higher input, high-pressure system that still relied on favourable conditions to fully hit its optimum, meaning the risk of carrying higher marginal input costs was always hanging over the farm operation.

“This challenges farmers to reconsider if putting stock on steep country like this was the right thing to do.” n

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NEWS

Best hoof forward

By Ross Nolly

These Pīhama farmers didn’t let a little thing like global supply chain disruptions stand between them and a better hoof trimmer.

P

erforming hoof work on lame cows is never a favourite farm task, and anything that can be done to simplify the process and make it safer for the cow and the farmer can only be beneficial.

Over two years ago, Pīhama farmers Kieran and Claire Bourke decided they needed new hoof-trimming chutes for their two farms.

Their contract milker milks 700 cows on their 270ha Manaia farm, Kaupok, and 500 cows on the family’s 115ha Pīhama homestead farm, Bourke Clonlara.

The farm is named after the Irish village in County Clare from which Kieran’s greatgreat-grandfather emigrated to New Zealand.

Their herds are predominately Holstein, but they’re also Jersey and Ayrshire breeders and have 30-40 cows of each breed.

Looking to find those chutes, the Bourkes visited the New Zealand National Fieldays with that in mind. They viewed a number of different

The Bourkes and the Ekochute in their rotary cowshed

brands before returning to the Ekochute site.

They felt that the heavily built, Irish-manufactured chutes had features that set them apart from other brands.

These include the fully opening, self-catching front gate, two 16cm-wide belly bands, ergonomic front leg support and a back leg system that leaves the foot in a perfect trimming position.

“We ended up ordering two chutes; one for each farm, But then covid-19 occurred, the ships stopped arriving, and the New Zealand importer stopped importing them,” Kieran says.

Two years later they had planned a family holiday to Europe, so contacted the Ekochute factory and told them that they would visit them when they were in

Ireland. The factory was only an hour away from one of the families they were staying with.

“When we were talking to the factory owner in Ireland I said, ‘I tell you what; we’ll come over in early January and see you.’ The phone immediately went silent. He didn’t know that we were going over there anyway,” Kieran joked.

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They visited the factory, bought two pre-made Ekochute Manual chutes and shipped back another three broken-down chutes packed around the assembled chutes to sell in New Zealand.

“The chutes are built by an Irish hoof trimmer who has visited many farms and experienced many types of chutes. So they’re built from a hoof trimmer’s perspective,” Kieran says.

“The chutes are built by an Irish hoof trimmer who has visited many farms and experienced many types of chutes. So they’re built from a hoof trimmer’s perspective.”

Kieran Bourke

“The support pillars are placed much further back than other chutes, which gives the cow’s rear legs more support. It’s those little things that that show they’re designed by a hoof trimmer with practical experience.”

A fully enclosed base stops the cow’s feet from sliding out and prevents the cow injuring herself or the farmer, and helps keep the cow calm.

The two belly straps are winched up underneath the cow. If a cow is held securely she becomes more comfortable and there’s less chance of her flailing about.

“The auto-shutting head bail was a big thing for us. As the cow walks through the chute her shoulders push the gate forward and closes it into a locked position. There’s no need to pull on a rope at the front to do it, which makes it easy and speeds up the process,” Kieran says.

DAIRY FARMER

December 2023

“The front hoof supports act like a chute. It has a winch and plate system that rolls underneath the leg and holds it securely so the cow can’t move while you’re working on it.

“Usually, you have to manually pick up the cow’s foot and strap it to a block.”

The Bourke’s old system required the use of a leg rope, a potentially dangerous operation.

Recently this has become even more concerning due to the difficulty of finding experienced staff as it is a potential safety hazard for the inexperienced. It’s also harder to attract good staff if a farm has poor facilities.

He said the farms’ contract milker “has worked with many chute models. His output and enjoyment through this machine is outstanding. He likes its user-friendliness and operating speed. He recently did all four feet of eight cows in an hour,” Kieran says.

“Our shed manager does most of this farm’s milkings and hoof work, and loves the chute because it’s so user friendly.”

Very few farmers enjoy doing cow hoof work, but an efficient, high quality facility makes it far more enjoyable.

Hooves that can move freely and steel pipes aren’t a good combination for fragile human hands.

A farmer is far more inclined to get in close and get the job done quickly when they know that they’re not at risk of being kicked and potentially getting injured.

“We used to do the hooves in the exit race, but we’ve put the new chute inside the cowshed so we can do feet undercover during milking,” Kieran says.

“If we see a lame cow, we draft her out and I spend five minutes doing her feet straight away, and then let her go down the exit race. With the other chute we had to wait until after milking to do the job.” n

Kieran Bourke demonstrates the front hoof mechanism that holds the hoof very securely.

INDUSTRY GOOD

Curbing costs is key Felix RodriguezFirpo

Pasture and crop harvested is a clear driver of profit and accounts for 22% of the difference in operating profit per hectare between more and less successful farms.

DairyNZ farm system analyst

T

he summer period is a good time to consider your farm financial returns for this season and whether there are any changes you can make as you look ahead.

The milk price this year from Fonterra of $7.25/kg milk solids (October) is in the bottom third of inflation-adjusted prices over the past 15 years and many farm businesses will make no financial progress this season unless the milk price increases.

With that in mind, DairyNZ has analysed 15 years of DairyBase data at a national and regional level, looking at the key performance indicators and relationships between the top 25% and bottom 75% of farms ranked by return on assets.

Our analysis set out to answer the question, “What are some of the key metrics to assess how a business is performing and is there potential to increase profit?’

The key finding was that lower cost of production is key. The top 25% of farm businesses produce milk for $1/kg MS less compared to others, with the top quarter’s operating expenses sitting at $5.25/kg MS compared to $6.25/kg MS for the remaining farms.

This shows a significant difference in the way that some farms manage their businesses, including controlling their expenses in relation to milk output.

The analysis also found that operating profit showed a $1600 difference per

“The key finding was that lower cost of production is key.

The top 25% of farm businesses produce milk for $1/kg MS less compared to others.” hectare between the top 25% and other 75%, which could equate to an extra $240,000 for the top group, assuming a typical 150ha farm.

We also saw the operating profit margin is 13% higher for the top group, meaning these farms can maintain profitability when milk price drops or climate impacts production and costs.

Regarding imported feed and pasture, more feed doesn’t necessarily increase profit.

Our analysis showed that the quantity of imported feed was similar between the two farming groups.

However, there are high input farms that do make high profit, but generally they source their supplement relatively cheaply and have very low wastage and pasture substitution.

Pasture and crop harvested is a clear

with DairyNZ driver of profit and accounts for 22% of the difference in operating profit per hectare.

Considering the importance of pasture, we looked at extra operating profit per ha for each extra tonne of pasture eaten.

We found the previous guideline of $300 of extra profit per tonne of pasture eaten has increased to $350 extra, when incorporating recent seasons. This applies to both the top 25% group and remaining 75% group.

We encourage you to look to use this summer period to review your farm system and expense structure.

Consider comparing what you have achieved compared to similar farms in your region, using DairyBase. Since pasture and crop harvested have been shown to have significant impacts on profit, these are good focus areas. n

MORE:

Budgeting advice and templates are available at dairynz.co.nz/budgeting, and you can find our DairyBase data at dairynz. co.nz/dairybase.

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28

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DAIRY FARMER

December 2023

NEWS

Cow by cow

AgResearch geneticist Roy Costilla is part of an international team focusing on identifying the cows with the best milking genes in small herds.

By Richard Rennie

AgResearch scientists are contributing to a programme that aims to lift the productivity of India’s millions of dairy farms, one cow at a time.

P

icking the best cow to breed from with only two in your herd is being made more considered than a toss of the coin, thanks to work that includes input from AgResearch scientists in India.

In a country of 75 million dairy farms averaging 1.7 cows per farm, the push is on to lift cow productivity to keep the country self-sufficient in milk production.

Despite the country being able to claim that it is the world’s largest dairy nation, India’s dairy cows are relatively low producing, typically averaging only 6-8 litres a day.

But AgResearch scientist and geneticist Roy Costilla has been part of an international team focusing on developing a means of identifying the cows with the best milking genes in small herds, to select for breeding future higher producing offspring.

The work is funded through the Bill & Melinda Gates Foundation to develop models that use genomic selection to identify the DNA markers for cows with a higher potential to deliver improvements in herd production.

The international team working on the project includes Professor Ben

DAIRY FARMER

December 2023

Hayes from the University of Queensland (Australia), as well as researchers from the University of New England (Australia), INRAE (France) and the BAIF research foundation (India).

Costilla says the challenge for researchers in such small herds is to identify which cow is best selected, something the team’s genomic selection model – developed specifically for small-scale Indian herds – is proving effective at.

The selection model has proven to be accurate when calibrated against data from 4650 cross-bred cows.

The model’s strength also lies in its ability to control the influence or the “nurture” side of the nature-nurture impact on production.

“Our model uses random effects for herds which allows us to circumvent the problem, one that is impossible to get rid of entirely when assessing, but you can get a good idea of its proportion of contribution.”

The model is also significant in that it is not generated by artificial intelligence, and uses real breeding data, something never done before for smallholder systems.

“Our simulations are using real genotype data from animals with known

phenotypes and all their known genetic effects. And we have shown that, using our model, we can identify the breeding values for cows with good accuracy when you have at least two animals per herd.”

The heritability of the milk production trait in India has been estimated at 16%, higher than Africa’s 12% but lower than New Zealand-Ireland’s 20-30%.

“Over time with breeding we would expect to see that figure increase.”

He emphasises that genetics are not the silver bullet for India’s dairy productivity gains.

“Nonetheless, they help.

When you have good genetics, the nurture side of things also improves – the stock are valued more, looked after even better.”

The results of identifying cows with the best milking traits will feed back to better bull selection, and thanks to an extensive AB system in India the genetics can be distributed quickly and widely.

“In some respects, it is a system more advanced than NZ. India has had affordable, accessible sexed semen for several years ahead of NZ, for example.”

He says the diverse nature

of India’s dairy sector is also a bonus, with breeds and bloodlines around that are specific to different states’ conditions.

Future work will include expanding the model to allow for “genotype by environment” interactions – that is, the genetic differences that result from an exposure to particular environments.

“We are looking for the best genetics for the particular environment, based on stateby-state conditions.”Because the work is for the BAIF research foundation, an Indian NGO backed by the Bill & Melinda Gates Foundation, there is no intention to commercialise the model.

However, it is set to play a big part in helping India’s national effort to lift dairy herd productivity in coming years.

“The next phase involves working together with BAIF and the National Dairy Development Board of India to implement the breeding values in the field.”

The researchers also intend to focus on the implementation of genomic selection on India’s large buffalo population, which also supplies about half of the country’s fresh milk. n

29

TECHNOLOGY

A better read on pasture

By Sam Jaquiery

New tech could make the weekly farm walk a thing of the past.

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arm walks are notoriously timeconsuming and demanding, deterring many hardworking farmers from reaping their benefits.

Recognising the opportunity, Jeremy Bryant and the team at Aimer Farming have been working on a new tool, AIMER Vision, that utilises a smartphone camera to read pasture cover.

It was launched in Te Awamutu recently and farms are trialling it across Waikato.

In the next phase it will be expanded to read pasture all over New Zealand.

“We want to make the information as accessible as possible to farmers. There’s a lot of value in having pasture data on farm, but the time to do farm walks can be a major barrier for many farmers,” says Bryant, who is Aimer Farming’s founder and chief technology officer.

“We already have AIMER, an artificial intelligence-enabled digital assistant and operating system which speeds that process up, allowing farmers to walk a portion of the farm

Aimer Farming founder and chief technology officer Dr Jeremy Bryant.

and derive estimates for the rest, and AIMER Vision drives even more efficiency.”

The new tool has the potential to replace a plate meter and the goal is to eventually link it to a drone to reduce the labour component even further.

“Farm walks can take four to five hours easy and that’s a lot of time out of the week, where utilising AIMER and AIMER Vision could reduce walks to

45 minutes to an hour, which makes it so much easier for a farm to manage.”

Farmers who have been using AIMER shared their experience at the AIMER Vision launch. Among them was Charles Sanson, who looks after two farms near Otorohanga.

He struggled to fit in his weekly farm walks, which was what attracted him to AIMER in the first place, and he has found the biggest cost saving is the time it has freed up. It has also enhanced his decision-making ability.

“When I do a part farm walk I pick a random selection of paddocks with different growth rates and after the walk, I am able to play out grazing scenarios to see how the feed wedge will look in a couple of weeks so I can make decisions in a timely manner,” Sanson says.

He has been able to use the modelling from AIMER to help him make more accurate decisions with supplement use.

“Going from a pretty tough spring where we didn’t have

a lot of grass and fed a lot of supplement, we’re now pulling back the supplement to see how that fits the round length and optimisation score.

“It’s helping make decisions rather than being a little bit off the ball and maybe keeping that supplement going on for a little bit too long.”

Bryant grew up on a dairy farm and sharemilked for three years after school before heading to university, so he knows first-hand how improving pasture intake and quality drives productivity – but also how challenging it can be to collect sufficient data.

“Time is precious, it takes a lot to keep a farm running and most of the tools available were hindsight tools where data is entered and you look back to see where things went wrong,” Bryant says.

“But AIMER saves time and provides foresight into the coming weeks to help farmers decide what to do next.”

It takes four full farm walks to train the tool and from there it can generate pastures estimates from partial walks,

Steve Chappell from the New Zealand National Fieldays Society giving AIMER Vision a test run on the launch day.

saving significant amounts of labour.

It then uses the information and artificial intelligence via models Bryant and the team have built, to identify issues and make plans for the farmer.

It has been designed with the broader farm network in mind and will drive efficiency for farm advisers too.

“It’s helping make decisions rather than being a little bit off the ball and maybe keeping that supplement going on for a little bit too long.”

Jeremy Bryant Rather than spending time out on the farm obtaining pasture data, the farmer will already have pasture covers and details about mobs so it shortcuts the conversation and subsequent advice.

Bryant has a PhD in genetics and farm system modelling and several years of experience working in agritech.

The Aimer development team has expanded to eight

DAIRY FARMER

December 2023

and they have begun to take the concept internationally with farms in Australia and Chile already using the tool.

“We’re getting great feedback from farmers. The biggest is the time-saving factor and having grazing and supplement feeding plans automatically generated.

“The tool also provides an optimisation score as average cover can hide a lot of things, which allows farmers to truly understand what is happening in their paddocks.”

On their website there is a tool that farmers can use to estimate the opportunity to increase profits by focusing on pasture management. It breaks it down into increasing pasture eaten, improving pasture quality and reducing labour.

Bryant and the team will evolve the environmental aspects, so rather than simply quantifying methane or nitrogen the tool will provide recommendations that could reduce a farm’s environmental impact.

They are also adapting it for beef farming.

“It’s exciting to see the concept grow. What started as an idea in the back of my mind has now come to life and is helping farmers save a lot of time and drive productivity from a tool they can have in their pocket at all times.” n

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ROAD TO DAIRYING

From high heels to Red Bands

By Samantha Tennent

Hashini Cooke has gone from wanting to be off the farm to longing to be on one of her own.

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tepping out of a clean car in high heels and a skirt, Hashini Cooke quickly felt overdressed when she was greeted by a farmer fresh from the cowshed.

That first farm visit was a real eye-opener. Cooke had no idea what she had gotten herself into, taking on an agri manager role for ANZ in Danneverke.

But it was a pivotal move that led her to discover her true passion, dairy farming.

She is now back in Manawatū working with her dad, Sanath Samarawickrama, who is contract-milking 350 cows in Rongotea, and she has aspirations to join forces with her parents to buy a farm together.

“It’s been a big change going from wearing heels and dresses in the office and now I wear Red Bands every day,” Cooke says.

She had spent time on the farm when her family first moved to New Zealand, but she did not enjoy it and longed to live in town.

Cooke was born in Sri Lanka and moved to NZ with her parents in 2010 when she was 15. They came over for her mum, Gayani, to do her PhD in microbiology at Massey University.

Her dad had been in the army for 20 years back in Sri Lanka and went straight into farming when he got to NZ. “Back then I hated it, I never went near the shed or cows. I just wanted to be in town, so

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she got an itch to get involved with farming somehow.

“I spotted a rural banking role in Dannevirke and was fortunate to get it, so I moved over the hill and had 200 farms to look after and I loved it.

“I really enjoyed working with farmers, so much more than numbers. They really are the best people.”

“It was full-on.

I had to learn how to drive a manual and a tractor, I had never milked a cow before, and I went straight into calving.”

Hashini Cooke

Hashini Cooke started her working career in banking and accountancy before switching to dairy farming.

when I was 17, I moved into town boarding while I finished school and then carried on to study at Massey too.

“But I had no idea what I wanted to do, I just googled what jobs make the most money and accounting was right up the list, so that’s what I studied.”

She had a partner at the

time and together they had a daughter, Arya. After she finished studying, they moved to Feilding, where she worked as an auditor for Audit NZ. She audited government ministries and councils, checking that they were doing their accounts right. She also started working towards her chartered accountancy, but

After falling in love with the farming community, Cooke decided she would like to go farming herself so she reached out to a friend to ask if they knew anyone who would take on a complete newbie.

She secured a fixed-term role on a System 5, split calving farm starting in February this year.

“It was full-on. I had to learn how to drive a manual and a tractor, I had never milked a cow before, and I went straight into calving.

“But I realised I really liked farming and knew that’s the industry I want to be in.”

Now back in Rongotea,

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December 2023

looking back at her attitude as a teen makes her laugh.

“It’s been a big turnaround from hating the farm as a teenager, just wanting to be closer to my friends in town, and now I can’t think of anything better than living on the farm.

“And out here doing it is such a change from the bank, where I would see a farmer for half an hour in a meeting room most of the time. It’s a real eye-opener.

“Farmers have so much on their plate, they need to be electricians, vets, pasture managers, they have to know everything and I have so much respect for their knowledge.”

She has enjoyed getting involved with the community too. After the floods in February she became involved with the community during the clean-up. She has been dabbling in the local New Zealand Young Farmers events and is a member of the

hunting and fishing club at Massey.

She is keen to enter the New Zealand Dairy Industry Awards and has immersed herself in studying for a Master’s in Agribusiness.

“I’ve got a lot going on but I love not being stuck in an office. My favourite part is driving the tractor and feeding the cows and I love milking. I know it’ll be worth it.”

She owns a house in town and her parents have some rental properties that they plan to sell to buy a farm together somewhere around Manawatū eventually.

Cooke cannot imagine doing anything else and Arya loves it too – she gets a calf every birthday and enjoys getting out in the fresh air.

“I’ve learnt that whatever you do, you really have to have a passion for it and farming is mine. It’s what the country is built on and the people are amazing.” n

Hashini Cooke works for her father, Sanath Samarawickrama, who is contract milking 350 cows in Rongotea in Manawatū.

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Hashini Cooke’s transition to a dairy career has led to her becoming more involved in her local community, dabbling in local New Zealand Young Farmers events and become a member of the hunting and fishing club at Massey.

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December 2023

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DWN 25 YEARS

Opening doors for dairy women The Dairy Women’s Network marks 25 years this month with events around the country to connect with as many members as possible.

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or a quarter of a century the Dairy Women’s Network has been a haven for fostering education, connection and leadership opportunities in the dairy sector.

Its focus has always been on people and connecting and empowering those in the sector.

Dairy Farmer asked four agribusinesswomen throughout New Zealand what the DWN and its 25th anniversary means for them.

Barbara Kuriger has had a longstanding involvement with DWN. She is a regular at the Network’s conferences and functions. Kuriger also knew the DWN’s founders and served on the DWN board.

She still keeps in contact with DWN and just last month met up with members in Te Awamutu for coffee and a chat.

“I’ve kept that relationship pretty strong,” she says.

The MP for King Country/ Taranaki says it is great that the DWN is celebrating 25 years because of the impact it has had on women in the sector and how it has strengthened the dairy industry.

“They have touched thousands of women across the country in 25 years and I find that women in farming like to get together and discuss options that they may not want to do in a mixed [sex] group and that has given heaps of women the opportunity to learn new things but more importantly make new friends.”

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Kuriger congratulated DWN for reaching the 25-year milestone and predicts it will only get larger.

“If you look at the wellbeing of people and farmers, women play a big role in that wellbeing and having a connected network certainly helps because 25 years ago, we weren’t dealing with the issues we are dealing with now in terms of regulations and the expectations around climate change and the environment and all of the things people are dealing with on a day-to-day basis.

“It’s so important to have friends and networks to be able to cope with that.”

Kuriger was the inaugural Fonterra Dairy Woman of the Year, winning the title in 2012. It gave her the confidence to enter national politics.

Along with the subsequent programme she did with 24 other women, it helped lay the groundwork for her parliamentary career.

“It shaped me into the person I needed to be to go into politics.”

For Kuriger it was more than just a prize, it was a message.

“There was an opportunity to do something with this, and what it did was that it gave me the courage and confidence to stand up and go, ‘I’m going to have a go at parliament’.

Kuriger says she recalls being in board meetings for the organisations she was involved with, and thinking how few people in Wellington understood what was going on in rural NZ.

Northland hub leader Sue Skelton is one of seven hub leaders nationally for Dairy Women’s Network.

“If you look at the wellbeing of people and farmers, women play a big role in that wellbeing and having a connected network certainly helps.”

Barbara Kuriger “It was the Dairy Woman of the Year that launched me into the political space.”

Another former Dairy Woman of the Year is Katie Milne, who received the gong in 2015.

Milne is also a former

national president of Federated Farmers and Ag Communicator of the year and has been the Oceania representative on the World Farmers Organisation board for the past six years.

She says winning Dairy Woman of the Year opened many opportunities for her.

“I really encourage anyone who gets the opportunity to take it up, certainly involvement in Dairy Woman of the Year raised my profile, and opportunities arise.”

Over the past decade Milne has been shoulder-tapped for a number of key leadership roles.

“I’ve felt very humbled at the notice that’s been taken, opportunities that have evolved that I never really thought about, but that have

DAIRY FARMER

December 2023

given me great satisfaction in making a difference and not just in farming.

“There are a whole range of other things around food producers and in the community in general, it’s not just about farming, even though it’s been farming, I guess, that has initially brought me to the fore.

“People are not aware of who is out there and there are opportunities and approaches that have come completely from left field.

“For me it really has surprised me how many other entities are seeking not just necessarily a farming voice in leadership and directorships, but also rural community representation.

“So many things can fall in your lap through recognition and they may often be humble, under the radar, but they are making a big difference for New Zealand.”

The Westland dairy farmer is currently on the board of West Coast Conversation, Predator Free 2050, Asthma NZ and the Todd Foundation.

“Rural representation is not just about agriculture but what you can do for wider society from a rural perspective.

“When you’re in the throngs of doing the business, you

sometimes forget how important that is.”

Dairy Women’s Network Northland hub leader Sue Skelton says DWN is more valuable now than it was when she joined over 10 years ago.

That is because many more challenges face DWN members, who have a greater need for informed decisionmaking.

Skelton has a contract position as Northland hub leader and a voluntary position as the coast-to-coast business group leader with eight members.

She looks after three Northland regional leaders: Dianne Wright of Matakohe, Kylie Beatty at Tangiteroria, and Robyn Wilderman, Maungakaramea.

Further regional leaders are needed in the Far North, the Mid North and in the RodneyHelensville districts of greater Auckland.

Business group leaders co-ordinate each small group, prepare the agenda and encourage shared facilitation.

Skelton said the events are a mixture of practical, financial and social catch-ups, such as a recent Paint ’n’ Sip gathering.

The Northland yearly plan, to be discussed by the regional leaders in

DWN trustee Jenna Smith says the DWN will have to look to keep evolving over the next 25 years if it is to stay relevant to match what ever changes occur in the dairy industry.

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December 2023

Katie Milne says winning Dairy Woman of the Year in 2015 opened many opportunities for her.

late November, contains approximately five events per region in regions that have a leader, and they are both selforganised topics and network partner events.

Events can be full days, half days, evenings or webinars, most of which are recorded so members can watch at their convenient time.

Skelton and her three leaders are working farmers, therefore events are not scheduled for the busiest times of the dairy season.

“DWN is open to everyone, and values inclusivity, and so we have sheep and beef farmers and lifestylers as members along with rural professionals.”

Pouarua Farms chief executive Jenna Smith was appointed as a DWN director in 2020.

Smith says one of the reasons she feels so strongly about the Network’s role in the dairy industry is that she wishes she had known about it earlier.

“I wish I had known about that network or that group of people that was out there with that support.

“It’s why I want to now champion the network but also give my time back too, so

if there are women out there who are starting their careers, there is someone there to help them with support.

Smith describes DWN as a network that wraps around you. It’s inviting and warm and full of like-minded people championing other women in the industry.

Smith, who is a current trustee on DWN, says it is a huge accomplishment to reach 25 years.

It is a testament to the need for the Network in the community that it has evolved and stayed relevant for 25 years.

“That need from the community has changed over the years, but the fact that it is still needed speaks volumes to the dedication of the team.”

Looking ahead, Smith believes DWN’s core purpose will stay relatively the same, connecting and empowering women, but the opportunity for the next 25 years will be to evolve to stay relevant to match what is a fast-paced industry.

“What dairy means is ever evolving – does it mean dairy sheep, dairy goats, synthetic dairy? Those are all things we need to consider going into the future.” n

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DWN 25 YEARS

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Fonterra DWOTY nominations open

ominations are open for Fonterra Dairy Woman of the Year as the 13th year of the awards gets underway.

Each year, women from across New Zealand’s food and fibre sector, and who are part of the Dairy Women’s Network (DWN), are nominated for this prestigious award.

DWN CEO Jules Benton says these incredible women have a commitment, drive and passion for the dairy sector as a whole and are positive role models for women in dairying.

“We encourage our dairy women across Aotearoa New Zealand to put themselves forward for this award. They can either be nominated or apply themselves. Every day I meet women doing amazing things for their community and country and this award goes a small way to recognising their efforts.”

Donna Cram was named 2023 Dairy Woman of the Year. She says she has been overwhelmed by the difference winning this award has made in my life.

“Not only does the Fonterra Dairy Woman of the Year achieve the coveted title, but this year the recipient will

“Every day I meet women doing amazing things for their community and country and this award goes a small way to recognising their efforts.”

Jules Benton 36

receive a scholarship to the Kellogg Rural Leadership Programme, which includes the programme fee, travel, and accommodation, mentoring and access to DWN and Fonterra platforms to share their research,” Cram says.

Last year Vanessa Thomson, a Te Awamutu sharemilker, mum and full-time contracts and commercial adviser, received a scholarship to the programme. She called it a life-changing opportunity.

“I am so grateful for the network that I have made through Kellogg, and the tools that it has given me. I am excited for the future, and what my leadership journey might bring.”

Benton says a recent study showed that 960 Kellogg alumni have served in over 26,858 leadership roles, playing a direct role in creating an estimated 33,600 full-time equivalent roles.

At 28%, there is a high rate

Donna Cram was the 2023 Fonterra Dairy Woman of the Year.

of self-employment in the dairy sector compared to New Zealand as a whole.

Over the years, the judges have had strong criteria to assess the applicants as the nominees are of such high calibre.

The selection panel is led

by DWN trustee Donna Smit,

Dairy Women’s Network chief executive Jules Benton says the Fonterra Dairy Woman of the Year goes a small way to recognise the efforts of women involved in the dairy industry.

and consists of five judges, including representatives from DWN, Fonterra, Ballance Agri-Nutrients, Rural Leaders, and a previous Fonterra Dairy Woman of the Year.

“Our Fonterra Dairy Woman of the Year needs to be a strong performer who is recognised by her peers as a potential leader and who demonstrates leadership within her community and further afield.

“She is influential in the dairy sector, holding or having held leadership positions on regional or national dairy organisations. Ultimately, she has a vision to add value to the dairy sector’s future and is actively working towards achieving that in her leadership aspirations”.

All finalists will have a professional video recorded and have conference costs, travel and accommodation paid to attend the 2024 DWN conference and gala dinner.

The location and date of this event have yet to be announced. n

DAIRY FARMER

December 2023

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ANIMAL HEALTH

The hidden FE Clinical facial eczema presents with physical signs, but subclinical FE does not.

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aking a proactive stance on facial eczema management is the best defence against the condition.

Every dairy farmer is aware of clinical facial eczema and the potential for harm, but there’s a general lack of awareness of the prevalence of subclinical facial eczema (FE), and the harm this does to herd and farm productivity.

The disease is caused by a toxic fungus called pithomyces chartarum, which grows on the dead plant matter at the base of summer pastures. The fungus spores produce a toxin that damages the liver and bile ducts, which in turn causes toxins to build up in the body.

While clinical FE presents with physical signs – skin reddening and/or peeling, drop in production, restlessness – subclinical FE does not. However, liver damage will be present. There is no cure for facial eczema and recovery is dependent on the level of liver damage.

A 1998 study estimated an

average loss of $6180 per dairy farm due to just clinical cases of facial eczema.

Taking into account that DairyNZ estimates subclinical FE cases to be as high as 10 times those of clinical FE cases within the herd, that cost quickly climbs.

A 2019 study run by VetEnt showed FE can cost farmers 0.14-0.35kg milk solids per cow per day, with one farmer in the study losing $125,000 in milk production.

Understanding the signs of subclinical facial eczema and the risk levels on the farm goes a long way to establishing a comprehensive FE prevention plan.

An effective facial eczema prevention programmes takes a multipronged approach, including zinc supplementation, along with safe feeding and grazing.

While zinc supplementation is currently the main way of treating facial eczema, a 2014 study of 1200 cows across 105 North Island dairy farms found that 70% of cows weren’t getting enough zinc to provide protection.

There is no cure for facial eczema and recovery is dependent on the level of liver damage.

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A proactive approach to managing facial eczema can minimize its impact.

“Investing in a robust prevention plan will go a long way to reducing your herd’s risk this summer.”

This was primarily due to underestimating liveweights, inaccurate dosing, or incorrect product usage.

Zinc supplements work by disrupting the production of liver-damaging toxins and, to be successful, supplements must send zinc directly to the liver. This is best achieved when zinc supplements are in sulphate or oxide forms, and is one of the few situations where chelated forms may not be as effective.

Zinc can be supplied as part of a balanced formulation that can be dosed through drinking water, or as part of a mineral prill form that can be fed in the shed, blended into

feeds, or layered into silage wagons or mixer wagons.

Certain antifungal sprays can be valuable in pasture treatment. However, timing these spray applications around changing weather conditions can be tricky.

Getting the spray timing wrong can be catastrophic as there will be no control of the spore development and toxins can be formed very quickly.

Determining paddocks with high spore counts and avoiding these during high-risk periods helps in protecting your cattle against FE. In the same 2014 study, 98% of herd managers had access to regional spore count data, but only 33% measured spore counts on their own farms. Investing in pasture sampling with your local vet is the best way to determine spore counts on your farm.

There is no one way to completely guard against facial eczema, but investing in a robust prevention plan will go a long way to reducing your herd’s risk this summer. n

DAIRY FARMER

December 2023

ANIMAL HEALTH

Healthy beasts, healthy planet Animal health can contribute hugely to emissions reduction and global food supply, according to new research.

Samantha Tennent

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etter animal health leads to reduced emissions, a worldfirst report has

revealed.

Exciting messaging about the direct relationship between animal health and emissions was announced during the 2023 World Dairy Summit and builds on our work here at WelFarm.

The report was produced for HealthforAnimals by Oxford Analytica and analyses the relationship between animal health and the economy, environment and society.

Not surprisingly, it highlighted that, globally, animal disease significantly reduces productivity.

Estimated livestock disease costs are upwards of $600 billion in lost production every year.

But the exciting statistics showed that scaling up existing practices in animal health and husbandry means livestock could potentially serve more than nine billion people in 2050 without increasing emissions.

The report also showed a 10% fall in disease levels could decrease greenhouse gas (GHG) emissions by an impressive 800 million tonnes globally.

This is equal to the average annual emissions of 117 million

DAIRY FARMER

December 2023

Europeans, based on the European Union’s estimate of 6.8t of CO2 emitted per person each year.

The effect of disease on GHG emissions is most pronounced in low-income countries.

An outbreak of cattle disease affecting 20% of a herd is associated with an estimated 60% increase in GHG emissions in low-income countries compared to 42% in high-income countries.

Oxford Analytica built a model from 180 countries’ worth of data collected between 2005 and 2022, which was sourced from the World Organisation for Animal Health and United Nations Food and Agriculture Organisation.

The model used a robust multiple regression analysis to find meaningful connections, or “associations”, between factors such as vaccination, disease levels and productivity in livestock species.

It is also worth noting that associations can also reflect complementary, external factors as well. For example, vaccination data may also reflect the effect of an overall increased investment in veterinary care.

The final results also estimate the collective impacts of disease and vaccination rather than for individual illnesses.

The results showed, economically, that for every one percentage point reduction in global livestock disease levels, $6.3bn additional revenue is

A new report shows that a 10% fall in disease livestock levels could decrease greenhouse gas emissions by an estimated 800 million tonnes globally.

“The results showed, economically, that for every one percentage point reduction in global livestock disease levels, $6.3bn additional revenue is generated across the dairy industry.” generated across the dairy industry.

A case study analysis by Oxford Analytica found that livestock disease reduces global production by 80 billion kilograms of meat and 179.5 billion kilograms of dairy each year, reducing producer revenue by nearly $600bn.

For every 1% reduction in dairy cattle disease rates, there would be an increase in production enough to meet the average dairy needs of 80.5 million people and increase producer revenue by $6.3bn. Current dairy production losses due to disease are 180 billion kilograms, equal to the annual consumption needs of 2 billion people.

The release of this report aligns perfectly with Fonterra’s recent announcement regarding its emissions reduction targets.

In light of their commitment, Fonterra discusses the potential to lower emissions by increasing

production efficiency through higher kilograms of milksolids per cow, while ensuring stable inputs.

This approach not only supports better animal health, as emphasised in the report, but also contributes to the overall reduction of emissions.

To further optimise your herd’s health, we recommend consulting your veterinarian.

They can provide valuable insights into areas where improvements can be made.

Consider leveraging tools such as WelFarm, which employs benchmarking techniques to help you gauge your herd’s performance compared to other farms in your region and across the country.

By utilising such resources, you can better understand your herd’s standing and identify areas for improvement. n

Who am I?

Samantha Tennent is the general manager of WelFarm.

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SPECIAL REPORT

WORLD DAIRY SUMMIT

Dairy’s decade ahead The International Dairy Federation’s 2023 World Dairy Summit took place in Chicago in October. Samantha Tennent shares highlights from the conference.

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he world is preparing for a significant shift in agriculture, as the goal to sustainably feed a growing population takes centre stage.

At the International Dairy Federation’s 2023 World Dairy Summit in Chicago in the United States in October, leading analysts unveiled a long-term outlook on dairy markets, shedding light on the fundamental drivers of dairy supply and demand.

According to the 20232032 Agricultural Outlook report of the Organisation for Economic Co-operation and Development and the Food and Agriculture Organization of the United Nations, global agricultural and food production is set to grow over the next decade, albeit at a slower rate compared to the previous period, largely due to ongoing demographic trends.

OECD trade and agriculture directorate Lee Ann Jackson said the report highlights the peak and subsequent slow decline in international dairy prices since mid-2022 and the 2.2% surge in milk production during 2022.

The report also shows that fresh dairy products were the most consumed dairy products across various regions with projections indicating a 0.8% annual increase in dairy consumption, expected to reach 15.7kg per capita by 2023.

This growth rate is lower than the 1.3% per annum projected for all commodities covered in the outlook. However, global milk production is expected to surpass other major agricultural commodities, with

40

Global milk production is expected to surpass other major agricultural commodities, with an annual growth projection of 1.5% according to a global report

“NZ is predicted to maintain its position as the primary exporter of butter.”

Agricultural Outlook report an annual growth projection of 1.5%.

She explained India and Pakistan are expected to contribute significantly to this increase.

The European Union, the second largest dairy producer globally, is predicted

to witness a slight decline in production, because of both the way demands are changing and the expected move toward more sustainable agricultural policies.

Leading exporters including the EU, the US and New Zealand, are projected to account for 65% of global cheese exports, 70% of whole milk powder exports, 70% of butter exports, and 80% of skim milk powder exports by 2032, she said.

The EU is expected to remain the main exporter of cheese, followed by the US and NZ, which is predicted to maintain its position as the

primary exporter of butter, with a forecast market share of 40% in 2032, and a 60% share in whole milk powder in the same year.

While price volatility remains a pertinent issue in dairy markets, fluctuations are predominantly influenced by shifts in export and import behaviours, coupled with energy and fertiliser costs.

Despite nominal price increases, adjusting for inflation reveals stable or marginally decreasing real prices, highlighting the importance of keeping an eye on market fluctuations.

Acknowledging the assumptions underpinning

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December 2023

the report, Jackson emphasised the significance of monitoring evolving factors, including shifting consumer trends towards plant-based alternatives and climate-conscious production practices.

She emphasised the need to stay on top of these issues, especially with global uncertainties such as ongoing conflicts and possible changes in trade agreements, which can have a big impact on the dairy industry.

Building on the projections from the outlook, Rabo AgriFinance global sector strategist Mary Keough Ledman addressed the global demographic shift and its implications for the dairy industry.

Consumer behaviour is also changing with more shopping taking place digitally.

Promotions at a retail level are not as effective as they have been previously, she said.

She emphasised the projected growth of the global population by 705 million over the next decade, with substantial concentrations in Africa, India and Pakistan.

With India and Pakistan striving for self-sufficiency, China and the US are expected to emerge as the two primary growth markets for dairy, but they get there in different ways.

The US already consumes large amounts of dairy per

The EU is expected to remain the main exporter of cheese, followed by the US and NZ.

The European Union, the second largest dairy producer globally, is predicted to witness a slight decline in dairy production because of the way demand is changing and the expected move toward more sustainable agricultural policies.

“With India and Pakistan striving for self-sufficiency, China and the US are expected to emerge as the two primary growth markets for dairy, but they get there in different ways.”

Mary Keough Ledman capita, but its population growth will drive further dairy consumption, whereas the forecast for China is that there will be a decrease of 9.3 million people over the next decade.

Per capita consumption will drive its increase.

The population in China under 20 years old will decline by 61 million and the population over 50 will increase by 100 million, and this trend will continue in the following decade.

Ledman said there is a

need to redirect focus toward catering to the dietary needs of an aging population.

She encouraged a forwardthinking approach and stressed the significance of considering consumer demands in the form of functional ingredients to meet the evolving needs of the demographic landscape.

Other drivers influencing consumption were also discussed. As incomes rise, dairy consumption tends to increase, and dairy products

have been occupying a larger share of overall diets. While taste remains a significant purchasing factor globally, health considerations are also playing a crucial role.

There has been an evolution of protein awareness among consumers, and protein is going beyond athletes and nutrition support.

In China, the government has actively promoted milk consumption due to its nutritional value. And although the Chinese government is trying to increase milk production, China will not stop buying milk from the rest of the world; the mix is just likely to change.

There is confidence in the rapid growth of Chinese consumption beyond fresh dairy products and the domestic supply base.

The removal of trade barriers has the potential to increase overall milk consumption.

Unfortunately, NZ does not currently have a choice in this matter, which is driving extensive research and development efforts to identify future opportunities in the industry. n

MORE:

Samantha Tennent attended the event with support from WelFarm and the International Dairy Federation.

DAIRY FARMER

December 2023

41

SPECIAL REPORT

WORLD DAIRY SUMMIT

Global industry, local challenges

By Samantha Tennent

The head of the United States Dairy Export Council takes a worldwide view of the sector’s opportunities and threats.

D

airy farmers worldwide face similar challenges, whether it’s handmilking two or three cows in Africa or the rise of larger dairy farms in the United States and China.

To beat these obstacles, farmers are embracing innovative solutions and opportunities on a global scale, United States Dairy Export Council CEO and president Krysta Harden says, speaking to Dairy Farmer on the sidelines of the World Dairy Summit in Chicago.

“They may be farming in different ways, different sizes of farms, different locations [but] they have much more similarities than differences.

“These farmers encounter numerous common challenges, such as grappling with labour shortages, navigating environmental concerns, adapting to changing climatic conditions, contending with urban encroachment, and managing financial constraints.

“Ensuring they maintain adequate profit margins to sustain their farms and pass them on to the next generation is an enduring concern that arises frequently, irrespective of their location in the world.”

She highlights the vulnerabilities that the pandemic has exposed in the supply chain, noting the challenges faced by the US in transporting goods to and from Asia, as well as the

42

domestic struggles with land freight logistics.

“Farmers encounter a multitude of logistical hurdles, regardless of their geographical location, while also striving to foster global consumer understanding and appreciation for farming practices and the origins of their food.”

She identifies the shifting climate as one of the foremost challenges confronting farmers, who are having to adapt how they manage.

“In the United States, we are witnessing increasingly severe and erratic weather patterns, a trend mirrored across the globe.

“There’s such an instability of weather and farmers are trying to figure out how to deal with it.

“We are actively investing in scientific research and technologies to aid farmers in adapting to and mitigating these challenges, thereby playing a proactive role in the resolution process.”

She sees farmers adopting diverse seed varieties, contemplating alternative practices, and actively seeking solutions to mitigate the challenges at hand.

Energy-saving possibilities are being explored more frequently, with many farmers investing in electricitysaving technologies. For example, solar energy is being used for well operations across Africa.

The prevalence of methane digesters is on the

rise globally, and Harden anticipates a heightened emphasis on addressing water-related challenges in future.

Despite the challenges, she sees immense opportunities for dairy, and the nutritional benefits were a clear message that came through at the International Dairy Federation’s 2023 World Dairy Summit in Chicago in October.

“I believe we need to establish more effective means of connecting with our consumers. We seem to have assumed they understand that there’s no direct substitute for dairy in terms of calorie-to-calorie nutrition.

“We need to find a way to meet them where they are and listen to learn from them and make sure we are approachable as an industry.”

She gives the example of famous YouTuber MrBeast working in collaboration with the US dairy industry’s National Dairy Checkoff to build awareness of dairy.

In the Undeniably Dairy campaign, he is helping to reach Gen Z audiences.

In one video, MrBeast highlights dairy facts and challenges viewers to have a photo shoot on a dairy farm.

“Examples like MrBeast are innovative ways to connect with consumers and raise dairy’s profile, in a good way,” Harden says.

Harden has seen a lot of change throughout her career, particularly in the US, which

United States Dairy Export Council CEO and president Krysta Harden says farmers are embracing innovative solutions and opportunities on a global scale to meet the challenges facing the dairy industry.

is maintaining cow numbers but increasing production and reducing the number of farms.

Concepts such as the National Dairy Farmers Assuring Responsible Management programme, known as FARM in the US, give consumers assurance about of how milk is being produced.

“Animal care is critical irrespective of the size of the farm. Farmers care about their cows first, recognising their animals as essential to their livelihood.

“I strongly believe that the sector should collaborate in seeking solutions that equip farmers with more tools, advocating for incentivebased systems over regulatory frameworks to provide comprehensive support for both farmers and the industry as a whole.” n

MORE:

Samantha Tennent attended the event with support from WelFarm and the International Dairy Federation.

DAIRY FARMER

December 2023

WORLD DAIRY SUMMIT

SPECIAL REPORT

The heat is on

By Samantha Tennent

Taking proactive measures to combat heat stress is a crucial part of making sure dairy farming remains sustainable in the face of climate change, summit is told.

I

t is estimated that the global impact of heat stress will cost the dairy industry $50 billion by 2050 – as well as bringing about a 137% increase in carbon dioxide emissions compared to 2020.

The figures could be higher depending on the milk price and effects on cow mortality.

The data was presented by the International Farm Comparison Network – Dairy Research Network chief executive and founder Torsten Hemme during a session at the 2023 World Dairy Summit on managing heat stress in dairy cattle.

His team built a model based on 15 studies from 12 countries and used more parameters than previous methods for analysing heat stress.

The model estimates production loss and CO2 equivalent emissions and builds profiles for farms across the globe.

The losses estimated for 2020 equated to about $22bn, with tropical countries suffering more than temperate countries.

Carbon dioxide emissions were estimated to increase up to 3% per herd due to heat stress with a lower impact in Europe but higher in emerging countries such as Brazil, India, Pakistan, China and Kenya.

By 2050, there are likely to be seven to 10 more heat stress days on average around the world in comparison to 2020. Productive herds in California may expect 45 more hot days and 32 more

DAIRY FARMER

December 2023

It is estimated that heat stress will cost the global dairy industry $50 billion by 2050.

in Wisconsin. Europe and Japan will have 22-30 more hot days and Russia, Australia and South Africa will be the least affected by the changing climate, according to the modelling.

The cost of heat stress goes beyond production, with impacts seen on health, somatic cell count, reproduction efficiency, lameness and dry matter intake.

Heat stress is widely measured in livestock by the temperature humidity index (THI), which is a bioclimatic index that combines temperature and relative humidity.

A THI of 68 is considered mild, and research suggests a THI of 65 to be the new threshold for high-producing cows, although there are challenges with determining THI measurements accurately in pasture-based systems.

Data extracted from a scientific review conducted by the International Dairy Federation’s scientific team delves into the critical milk yield threshold for Holstein Friesian cows raised in various countries. The findings reveal that the breakpoint appears to be influenced by latitude, with lower latitudes correlating to higher THI values and higher latitudes associated with lower THI. Looking at today’s climate, there is a widespread risk of heat stress for cows everywhere, especially in tropical areas. How bad it gets depends on how well we can cut down on greenhouse gas emissions. If we stick with the usual way of doing things, there is a growing risk of heat stress globally, even in colder places.

But the good news is that even a slight reduction in heat has a significant and

positive effect, as explained by Dr Mario Mondaca Durate, a senior research engineer from VES-Artex.

During his summit presentation, he said that cooling methods should be employed when temperatures start to hit 20degC. When it comes to keeping cows cool, various methods were discussed.

Ventilation, which removes heat, moisture, and gases, proves effective. Using airspeed to cool cows not only boosts milk production but also increases their lying times.

Another method is water cooling, commonly employed in New Zealand dairy sheds, where water is used to create a cooler environment for the animals.

The most cost-effective way to cool is in the yard where cows stand before milking, especially since their body temperature rises if no cooling is provided.

Ensuring the wellbeing of dairy cows and the long-term success of the global dairy industry in a changing climate involves practical steps like using ventilation and water cooling.

These strategies are important not just for the economy; they are essential for keeping the cows comfortable and ensuring the industry can adapt to a warmer world. n

MORE:

Samantha Tennent attended the event with support from WelFarm and the International Dairy Federation.

43

SPECIAL REPORT

WORLD DAIRY SUMMIT

Dairy builds the future

By Samantha Tennent

US Secretary of Agriculture Tom Vilsack says it was the dairy industry in the US that first encouraged a voluntary and market-based system that would reward farmers for addressing the climate.

T

he wellbeing of his country’s dairy industry is front of mind for United States Secretary of Agriculture Tom Vilsack as its farmers battle the impact of climate change and farm consolidation.

A staggering 92.5% of dairy farmers collectively share only 11% of the total income derived from dairy operations in the US, underscoring the immediate need for attention and support.

Speaking at the International Dairy Federation’s 2023 World Dairy Summit in Chicago, Vilsack shed light on the proactive measures the US is undertaking to safeguard the long-term sustainability of agriculture.

“Farmers have told us they want a voluntary system that is incentive-based and understands and encourages the market to recognise the contribution they’re making.

“They want to make sure that there is a strong and valid method of recording, measuring, and monitoring as well as verifying results so we can assure consumers that the items they’re purchasing have been sustainably produced.

“And they want it to be a collaborative partnership, so we have established the climate-smart partnership initiative.”

Under the Partnerships for Climate-Smart Commodities, the US Department of Agriculture announced it would finance partnerships to

44

US Secretary of Agriculture Tom Vilsack says American dairy farmers want a voluntary, incentive-based system for protecting the long-term sustainability of agriculture.

support the production and marketing of climate-smart commodities via a set of pilot projects lasting one to five years.

In the first pool, 70 projects were selected to receive an investment of up to US$2.8 billion (about $4.75bn), which increased by another 71 projects and a further US$325 million investment at the end of 2022.

The projects that will receive funding include precision agriculture, biofuels, marketing and education programmes.

“We recognise the opportunity to create a value-add commodity so that farmers not only are paid to do the climate-smart practices that we think will be beneficial to the climate, but they’re also rewarded in the marketplace with a value-add proposition.”

He believes consumers in the US are interested in and willing to invest in sustainably produced products, but they need proof that these products are what they say.

He knows the deep care dairy farmers have for their operations, the environment, and their communities.

“I think it’s up to us in the policy-making arena to ensure that we’re taking the appropriate steps to create a programme that understands and appreciates all types of farmers.

“That’s why I’m excited about this opportunity to create an entrepreneurial model that complements our production agriculture model.

We’re going to continue to need strong production from American agriculture to feed the world and we’re also going to need to make sure

we create that opportunity for small to midsize business so we retain the vibrancy of our rural communities.”

Vilsack does not like it that 57 million hectares of land in the US is no longer used for farming. That land mass equates to the entire states of Florida, Georgia, North Carolina and South Carolina combined, which is a tremendous loss.

Vilsack spent four years in the US Dairy Export Council before returning to the USDA. He said he is keen to protect US agriculture by supporting sustainability and achieving fair market value.

“My four years in the dairy industry allowed me to learn of the potential. It was the dairy industry first and foremost that saw the capacity and opportunity to essentially get to a net zero future.

“It was the dairy industry in the United States that encouraged a voluntary and market-based system that would listen to farmers and reward farmers for addressing the climate.

“I’ll be forever grateful to the industry for doing that and I think this industry can take pride in the fact that you’ve already started that effort, to tap the boundless potential and endless possibility of not just the dairy sector but of all agriculture.” n

MORE:

Samantha Tennent attended the event with support from WelFarm and the International Dairy Federation.

DAIRY FARMER

December 2023

SPECIAL REPORT

Twenty-nine delegates from New Zealand attended the World Dairy Summit in Chicago.

Driving global dairy

By Samantha Tennent

The organisation behind the World Dairy Summit has some serious worldwide dairy credentials.

F

rom “grass to glass” is how Sharon Mitchell describes the work of the International Dairy Federation.

Serving as the national committee secretary for the IDF in New Zealand, Mitchell has been actively involved for over 20 years and was recently appointed to the IDF board, one of only four people from NZ in the 120-year history of the IDF. “IDF offers substantiated scientific evidence and guidance for establishing standards and regulations, fostered through collaborative partnerships and relationships with a multitude of organisations,” Mitchell says.

“Globally, our efforts revolve

around unifying milk and milk production standards, encompassing every facet of the supply chain.

“And it’s crucial for New Zealand to be at that table to influence our position since we’re pretty unique with our pasture-based farming.”

Established in 1903, the IDF covers over 160 different projects, touching all aspects of the supply chain.

The NZ national committee prioritises work relevant to the country’s system and is chaired by Dr Jeremy Hill, chief science and technology officer at Fonterra.

National committees are the backbone of IDF and the board of directors contributes to the development and

in PODCAST

achievement of IDF objectives.

The IDF boasts a membership of over 40 countries, collectively representing more than 74% of the world’s milk production, each with its own national committee. NZ’s membership is supported with farmer levies through DairyNZ. Each year the IDF hosts the World Dairy Summit. Twelve hundred people from all over the world attended the event with the theme of Boundless Potential and Endless Possibilities.

Discussions underscored the importance of addressing consumer apprehensions regarding animal welfare and other potential challenges.

The next summit will be held in France next year

and the 2025 event in Chile.

NZ has secured the hosting of the 2026 World Dairy Summit, with planning already underway.

“People value coming to IDF events in New Zealand.

The summit we hosted in 2010 attracted 2500 attendees from all over the world,” Mitchell says.

“So it’s exciting we are hosting again. It will be in Auckland and there’s a lot of work to be done over the next three years but it will certainly be a great event.” n

MORE:

Samantha Tennent attended the event with support from WelFarm and the International Dairy Federation.

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NEWS

Managing risk

There are multiple ways to manage milk price risk, says HighGround Dairy global market insights senior manager Stu Davison.

By Stu Davison

N

ow that it’s early December, half of the 2023/24 season will have been written into the history books, from the volume of rain that fell in each month to how many kilograms of milk solids you have sent to the factory.

What does not get written into the history books until well after the season has ticked over on the calendar is the actual price you will be paid for the milk solids supplied to the factory.

Agriculture is built on the premise of producing something from the land under the expectation of being able to sell the produce at a profit.

Other businesses outside of agriculture operate under very similar conditions, with a price expectation built into every operation within. But for most, the determination of price achieved happens a lot faster than it does in the dairy industry.

We think that we have to carry this risk each and every day, leaning on the “it’s just how it works here” mentality.

The financial instruments aptly named “futures” were developed to trade the future risk of wheat prices between all users of wheat, from the farmers selling their produce through to grain merchants selling wheat to the end user – these financial instruments

provide the ability to transfer risk from one person to another, and thus creating some certainty.

You are already managing all the costs and inputs on farm, so why not look to manage the revenue aspect of your business at the end of the season?

There are multiple ways to manage milk price risk

in NZ, from Fonterra’s Fixed Milk Price offerings through to engaging a futures broker to help you understand the milk price market that exists to help you remove risk from your business. n

Who am I?

Stu Davison is senior manager, global market insights for HighGround Dairy.

Empowering you to thrive in dairy From Risk Management Services to Global Dairy Market Intelligence - We Deliver the Advantage You Need Using our team’s decades of dairy industry experience, we deliver unparalleled global market intelligence, opinion, strategy, and execution in a relentless pursuit of customer success.

Our reports provide clear insight into the global dairy market and how it might affect your business’s profitability. Empowered with critical data, you can develop custom hedging strategies that fit your company’s unique risk profile. And we can help!

Scan the QR Code to Learn More Futures and options trading involves substantial risk and is not suitable for everyone.

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December 2023

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One last word …

I

t’s been another challenging year in the New Zealand dairy industry as it navigates a falling milk price, high input prices as well as some awful weather events in some regions.

For those affected by the damage from cyclones Hale and Gabrielle, it’s a much tougher journey ahead.

Fortunately, Fonterra came to the party and kept paying those farmers who had to dry off their cows as a result of the damage from Cyclone Gabrielle.

As we get to summer, hopefully everyone, including these people, have the chance to get off the farm for a while and put their feet up and relax and unwind.

There’s been a change in government – but what that actually looks like, and what it will mean for the agricultural sector, is still an unknown at the time of writing.

While there are now more people with farming backgrounds in Wellington, it might not necessarily mean the new government will immediately tear up the new regulations that have hit the industry over the last six years.

It’s more likely there will be tinkering, with maybe a few tweaks to some rules and small changes to others, particularly in the emissions space.

Lingering ahead is the nagging question of an El Niño summer drought.

It’s been talked up so much that unless a farmer lives on Mars, it will be hard to believe they are not getting ready if it really does happen.

50

Perhaps the biggest news as the end of the year approaches was Fonterra finally released its Scope 3 emissions targets, targeting a 30% intensity reduction in onfarm emissions by 2030.

This is a collective target across all its supplying farms. Broken down, it says it will achieve this through a 7% reduction through farming best practice such as feed quality and improving herd performance.

A further 7% will be reduced via new technologies, 8% is to be reduced through carbon removals from existing and new vegetation and 8% will also be reduced from historical land-use change conversions to dairy.

Rather than caps or limits on feed or cow numbers, in the short-term Fonterra will support farmers in the shift to more sustainable practices and work with industry partners as they develop tools farmers can use – no doubt it was one of the issues that sparked the negative response from the usual suspects at Greenpeace.

Rather surprisingly, it opted not to create financial incentives for paying farmers who do lower their emissions, either through a premium or some kind of incentive in its Co-operative Difference programme – although this has not been ruled out further down the track.

Instead, it relies on farmers getting on board and being open to making changes where they see fit.

Critically, Nestlé has supported the plan.

It also finally puts all the speculation about what and how to bed and puts into place the chance for farmers to start looking at actions they can do. Many have already begun this and are recording their emissions whether they are a Fonterra supplier or not.

Fonterra chair Peter McBride said at the release of the plan that there is no one solution to reducing on-farm emissions.

“It will require a combination of sharing best farming practices and technology to reduce emissions – it’s both our biggest opportunity and our biggest challenge.

“We have deep empathy for the challenges our farmers are already dealing with. The co-op’s approach will be to work alongside farmers, not against them, as we collectively make progress towards our target, including investing in methane-reduction technologies.”

Hopefully he is true to his word as there will be unexpected roadblocks as this is put into practice inside the farm gate over the next year.

From everyone at the Dairy Farmer team, we wish you all season’s greetings, Merry Christmas and a happy New Year.

See you all in 2024.

Gerald

Read us anywhere: farmersweekly.co.nz

DAIRY FARMER

December 2023

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DAIRY DIARY December 2023 How to be a successful candidate DairyNZ is holding a series of workshops throughout the South Island this month for job seekers looking for employment next season.

Whether it’s your next sharemilker or farm assistant position, come along to this workshop to get tips and tricks to become the most attractive candidate.

The workshop will involve: • What job to apply for • CV and cover letter • Recruitment process • Due diligence Feel free to bring your own CV and cover letter and we can give you some feedback.

December 5 Hurunui Rugby Club, School Road, Culverden 11:15am-1pm Contact: Ross Bishop - Ross.Bishop@dairynz.co.nz Dunsandel Community Centre, Tramway Road, Dunsandel 11:15am-1pm Contact Alex Perrott - alex.perrott@dairynz.co.nz December 6 Oxford Town Hall (A&P Room) 34 Main Street, Oxford 11:15am-1pm Contact: Alex Perrott - alex.perrott@dairynz.co.nz December 7 Ashburton, Ashburton Community House, 44 Cass Street, Ashburton, 11:15am-1pm Contact: Alex Perrott - alex.perrott@dairynz.co.nz bit.ly/466WGIs Dairy Women’s Network turns 25 Dairy Women’s Network is celebrating its 25th anniversary with a number of events around New Zealand: December 6 Manawatū-Tararua 23 Gordon Street, Dannevirke, Manawatū-Wanganui, 12-2pm Price: $30 Mid-South Canterbury The Lake House, Lake Hood Drive, Lake Hood, Ashburton, 12-2pm Price: $30 December 7 Northland - Quail Café, 37A Russell Road, Kensington, Whangārei, 10-12pm Price: $15

Southland - The Green House Eatery, 232 Great North Road, 12-2pm Price: $30 December 8 Taranaki Taranaki Pioneer Village, Main Road South, Stratford., 11:30am 1:30pm Price: $30 December 13 Central Plateau 1110 Tutanekai Street, Rotorua.

Mac’s Steak House, 12-2pm Price: $30 Registration and further details are available at: https://www.dwn.co.nz/events/ events@dwn.org.nz MilkSmart workshops The first step to milking smarter is an efficient milking routine, and DairyNZ’s MilkSmart tool can support you to do this.

Learn more about the small changes you can make at milking times for significantly improving efficiency, milk quality and farm profitability, at this event delivered by Dairy Training Ltd, suitable for all dairy farmers.

This event will cover: • Benchmarking your current milking performance • Principles of maximum milking time (MaxT) • How to simplify your milking routine December 13 Waipu Citizens & Services Club, 18 Nova Scotia Drive, Waipu 10-2pm December 14 Meeting room of Fonterra Jordan Valley Farm, 259 Jordan Valley Road, Hikurangi SN 17063, 10am-2pm Contact for both workshops: Ronda Ridsdale - ronda.ridsdale@dairynz.co.nz Registrations available here: bit.ly/466WGIs Smaller Herds Group Dylan Lynch and Natasha Maybee have kindly offered to host our next on-farm smaller herds event looking at the detail behind their Allflex cow collars investment, data, and performance they are driving from the system.

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