NZ Dairy Exporter December 2018 by NZ Farmlife Media

Learn, grow, excel Unlocking heifer PERFORMANCE PAS T UR E SUM M I T: Pasture first

DECEMBER 2018

$12

$12 incl GST

Support blocks Benefit or cost?

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

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AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ACVM No: A8237. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz NZ/BOV/0918/0009 ÂŠ 2018 2 Intervet International B.V. All Rights Reserved. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

CONTENTS

LUSH LANDS OF TOWER PEAK 56 ONLINE 10

Dairy Exporter’s online presence

MILKING PLATFORM 11

Christmas is coming and Sam Sherrard’s rellies are coming to stay

James Davidson has thoughts on keeping your farming mojo alive

Frances Coles outlines the family’s scholarship programme

NOTEBOOK 15

It’s showtime

DIVERSIFYING WITH PRIME CUTS 32

UPFRONT 14

Michael Murphy’s law: Focus on the grass

MPI reviews herd improvement law

Dairy consultant Chris Lewis on the challenges ahead

Market View: Pressure on markets may ease

GLOBAL DAIRY 24

Ireland: Farmers carry on milking inside Brexit bubble

BUSINESS

Grappling with a low payout on the West Coast

Land use suitability ahead

Diversifying with prime cuts

CO Diary: Challenges or opportunities facing dairy?

Steve Carden: New model for dairy

Greenhouse gas challenge for dairy

SEEDS FOR THE FUTURE 45 OUR COVER: English import Kathryn Hutchings is relishing her 2IC role on young stock support farm Tower Peak in Southland, with Tick, Ash and Meg, three of her five dogs. Photos: Megan Graham. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

SYSTEMS 40

Simpler system delivers results

Seeds for the future

Efficient feeding in the Netherlands

SPECIAL REPORT | SUPPORT BLOCKS A LITTLE PIECE OF PARADISE 74

Lush lands of Tower Peak

A question of control

Securing supplement supply in the Waikato

Weighing the factors

That extra effort in North Canterbury

ENVIRONMENT

Support blocks

A little piece of paradise

Ecologically Speaking: Healthy ecosystems and

healthy people 81

Benefit or cost? 56 61 62 67 70

STOCK

Lush Lands of Tower Peak A Question of Control Securing Supplement Supply Weighing the Factors That Extra Effort

Getting a buzz out of dairying

For the love of cows and science

COLUMNS 23

Market view

CO Diary

Vet Voice

DAIRY 101: Climate change

FARM GEAR: One man went to mow

RESEARCH WRAP: Kikuyu management

GETTING A BUZZ OUT OF DAIRYING 88

Irrigation in the land of the pivot

guide updated 100

DIRECTORY

DAIRY SOLUTIONS 102 Colour coding to prevent accidents on farm 103 Plan your last fence post

PROPERTY 104 Overview: Sellers outnumber buyers 106 Self-contained near Hokitika Dairy Exporter | www.nzfarmlife.co.nz | December 2018

DAIRY DIARY

BROUGHT TO YOU BY FONTERRA FARM SOURCE

NZFARMSOURCE.CO.NZ/STORE | 0800 731 266

DECEMBER December 12 – Taranaki Organics Group visits the Flemings farm to discuss summer management and other issues. More? visit www.dairynz.co.nz/events/taranaki/taranaki-organics-group

JANUARY January 16-17 – The 2019 Positive Farmers Conference in Cork, Ireland, focuses on building a profitable farming business together with a high quality of life. More? www.positivefarmers.ie January 20-24 – Australia’s International Dairy Week is a forum to showcase the latest developments in the country’s dairy industry, from farming practices and technology to genetics and environmental management. The event is held at Tatura Park in Victoria. More? visit www.idw.com.au

January 30 – Biz Start events are being held again in Canterbury and North Otago. This DairyNZ session focuses on the various business structures, considerations around taxation, personal budgeting and cashflow budgeting for a business. It is aimed at building business skills to equip people for senior level management positions, plus owning or running your own farming business. Dates/locations: January 30, Temuka; January 31, Dunsandel.

FEBRUARY February 4 – Amberley. For further information visit www.dairy.co.nz/events February 12 – Gaining control of infectious diseases is the focus of a West Coast workshop run MSD Animal Health in conjunction with Dairy Women’s Network. The series of workshops are being held around the country during the next couple of months. The main disease focus will be Mycoplasma bovis, BVD and Johnnes disease. The workshop runs between 9.30am and 12.30pm. Other dates/locations: February 13, Nelson; March 5, Central Otago; March 6, Western Southland; April 10, Rodney; April 11, Whangarei. More? visit www.dwn.co.nz/event/gain-control-of-infectiousdiseases-on-farm-nelson February 12-14 – The Fertiliser and Lime Research Centre holds its 32nd annual workshop at Massey University which is aimed at transferring information among industry, science, policy and regulatory sectors. The 2019 workshop focuses on

nutrient loss mitigations for compliance in agriculture. For more on the workshop and to register, visit www.massey.ac.nz/~flrc/workshops/19/workshop2019.html February 14-15 – Federated Farmers Dairy Council meeting in New Plymouth. Visit www.fedfarm.org.nz February 22 – The regional Ballance Farm Environmental Awards begins in the Bay of Plenty with an awards evening. From there, the other regions will follow through to the National Sustainability Showcase on June 6. For full details about the awards visit www.nzfeatrust.org.nz February 28-March 2 – The Northland Agricultural Field Days feature the most recent farm innovations and technology. The field days are held on the outskirts of Dargaville and open between 9am and 4.30pm each day. Tickets can be bought online. For more information visit www.northlandfielddays.co.nz

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Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Editor’s note

Pasture first, profit always

asture first, pasture only? Profitability first and foremost…what, even, is production? This was the thrust of the very successful inaugural Pasture Summit held in late November in both the North and South Islands, with almost 500 farmers at each event. The message was clear, concentrate on matching as closely as possible the pasture growth curve to cow demand and keep the system simple, repeatable and profitable. That is New Zealand’s true advantage and the way to maximise profitability. Speaker after speaker talked about rising dairy debt levels, infrastructure creep, farmers putting palm kernel and other supplement into the system and then not taking it out and the effect of pasture substitution on pasture production and quality. The science is clear, and the economics totally back it up: simple repeatable grass-based systems with strict cost control is the way to survive low-payout years and thrive in high-payout years. Irish dairy farmer Michael Murphy brought a group of Irish dairy farmers down for the Summit, and incorporated farm tours to some of NZs best grass-system farmers. Read about his presentation on page 15. Being right on deadline we only managed to squeak one of the Pasture Summit stories into this issue – but January will be packed with more of them. The Pasture Summit organisers plan to have a follow-up event in Ireland in 2020, with trips to Moorepark, (one of Ireland’s dairy research facilities) and tours to see their top grass farmers. The Dairy Exporter will be there too, and will take a tour party of NZ farmers – put it on your calendar and start saving! For next year, we are working with Farm to Farm Tours

to start running an annual Dairy Exporter Technical Dairy Tour with our first foray to Victoria and South Australia in May 2019 to look at leading and innovative dairy farms and research institutions there (along with some stunning tourist sites). We are just nailing down the visits and details and will be launching the itinerary in January. It will be tax deductible and very informative – so save the date if you are interested. In our special report this month we look at support blocks – is yours a benefit or a cost, and how are farmers using them to get best value out of them? Canterbury farmer and accountant Mel Slattery says it depends what your drivers are, the numbers often come out negative or breakeven for buying over using a grazier, but it depends how much control you want to have (P61). Tower Peak station in Southland’s Takitimu Mountains has got to be one of the most scenic support blocks, Anne Lee found out what it adds to their dairy operations (P56). Enjoy your summer read, hope you get a break over Christmas to enjoy the season.

Jackie

Sneak Peek - Next Issue: • PASTURE SUMMIT: How the numbers stack up, what the science says and how you can rewind yor system to maximise pasture utilisation and profitability. SPECIAL REPORT: • FARM SUCCESSION: how to start planning early, strategies for making it work and keeping everyone talking.

NZ Dairy Exporter

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

@YoungDairyED

@DairyExporterNZ

Milk vats get a makeover We thought it was time that the unsung hero of the milk plant, the stainless-steel milk vat, had a makeover. So, Tru-Test Dairy Solutions is pleased to announce several practical and technical improvements to our range of farm milk holding tanks (vats). A lot of thinking has gone on behind New Zealand-made milk vats. Tru-Test Dairy Solutions is New Zealand’s largest manufacturer building around 90 percent of all farm vats sold throughout New Zealand.

“the modern milk vat now needs an additional 30-40 percent more cooling capacity” The newest evolution of farm milk holding tanks (vats) are now being manufactured and rolled out of our specialist production plant in Normanby, South Taranaki. Why are we doing this? Demands from international trading partners for raw milk to be cooled faster on farm to preserve quality means the modern milk

Find out more at tru-test.com/dairy

vat now needs an additional 30-40 percent more cooling capacity to comply with the new MPI regulations. (MPI milk cooling regulations require milk must be cooled to 6°C within two hours from the end of milking.) What’s more, the move toward greater operational efficiencies on farm and in the plant, such as larger herds, larger sheds and shorter milking times combine to mean much higher flow rates into the vat. Surely we could give this steadfast guardian of milk a boost? The research and development team at Tru-Test Dairy Solutions began to look at ways in which innovations to the standard vats might better meet the demand of increased flow as well as assisting with milk cooling in the face of tighter regulation. Without a doubt, getting milk to a low temperature quickly is now more critical. Unfortunately, increasing refrigeration capacity alone is not the ideal solution. As milk approaches 4°C any extra cooling can cause ice to form. So, challenged with removing heat from milk inside the vat faster, we wanted to make sure all cooling surfaces work as efficiently as possible.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

So, what is new? Agitator paddles have been redesigned, including changes to the paddle diameter and shape of the leading edge have shown significant benefits ensuring the flow of milk is better directed across the cooling pad. A great deal of effort has gone into making sure hygiene is maintained and that the new design cleans just as well as the old design, it can also be retrofitted into older vats. Cooling pads are bigger. We have increased the cooling pad size for the sidewall of 21,000L and 29,000L vats by 25 percent. This provides a greater amount of refrigerated surface or heat transfer area to cool milk on contact. Suction line heat exchangers can be installed below the vat to improve the efficiency of the refrigeration process. (The suction line heat exchanger is an additional component in the refrigeration system which manages the flow of liquid gas and vapour around the system.)

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Factory-fitted Polar Wraps can be secured snugly with a simple, ingenious stainless steel lip to hold the Polar Wrap in place and prevent moisture build up between the vat surface and the Polar Wrap on new 7,500L, 9400L & 16,000L vats. All these changes tie up as a package to help farmers keep up with the ever-increasing cooling demands. As always, our vats are made from quality T304 stainless steel with laser-welded base using direct expansion refrigeration pad technology. If you are wanting reliable on farm refrigeration, pre-cooling, new or quality second-hand vats, suited to your farm and your budget talk to Tru-Test Dairy Solutions on 0800 500 387.

How are you tracking? Letâ&#x20AC;&#x2122;s talk. 0800 TRUTEST (878 8378)9

NEW ZEALAND

Learn, grow, excel

ONLINE New Zealand Dairy Exporter’s online presence is an added dimension to your magazine. Through digital media, we share a selection of stories and photographs from the magazine. Here we share a selection of just some of what you can enjoy. MEET OUR TEAM:

NZ Dairy Exporter is published by NZ Farm Life Media PO Box 218, Feilding 4740, Toll free 0800 224 782, www.nzfarmlife.co.nz Dairy Exporter Editor Jackie Harrigan P: 06 280 3165, M: 027 359 7781 jackie.harrigan@nzfarmlife.co.nz Deputy editor Sheryl Brown, P: 021 239 1633 sheryl.brown@nzfarmlife.co.nz Lead sub-editor: Andy Maciver, P: 06 280 3166 Reporters Anne Hardie, P: 027 540 3635 verbatim@xtra.co.nz Anne Lee, P: 021 413 346 anne.lee@nzfarmlife.co.nz Karen Trebilcock, P: 03 489 8083 ak.trebilcock@xtra.co.nz

COW TO CONE A pair of Nelson dairy farms are adding value to their milk with prize-winning ice cream that’s set for export. See Dairy Exporter YouTube channel.

Kate Robinson, P: 021 358531 kate.robinson@farmside.co.nz Senior designer: Joanne Hannam jo.hannam@nzfarmlife.co.nz Junior designer: Cassandra Cleland Social Media::Charlie Pearson, P: 06 280 3169

Brad Hanson Photographer Brad Hanson is a freelance photographer based in Fielding, Manawatu. He was formerly an Air Force photographer who carried out photographic duties for the New Zealand Defence Force for nearly 15 years. FLORAL HARVEST John Evans, an arable farmer from MidCanterbury, flew his drone over his sunflower crop before it was harvested for silage. Here’s the beautiful result. See Dairy Exporter Facebook page.

Connect with us online: www.nzfarmlife.co.nz NZ Dairy Exporter @DairyExporterNZ

Brad’s career started in the dark room, drinking fixer and processing negatives and has evolved with the digital revolution in photography. His overseas assignments included the Middle East, Europe, Antarctica and various trips into the Pacific documenting the efforts of the NZDF. After leaving the defence force to spend more time with his young family he started a photographic business and is branching out into telling stories with video. “I grew up in a rural area, did a couple of years milking when I was younger and still enjoy going out on farms. Fast forward 15 years I am now a specialist in taking photos of people in their environment so shooting rural editorial work is a good fit.”

Partnerships Managers: Janine Aish Auckland, Waikato, Bay of Plenty P: 027 890 0015 janine.aish@nzfarmlife.co.nz Tony Leggett Lower North Island P: 027 474 6093 tony.leggett@nzfarmlife.co.nz David Paterson South Island, P: 027 289 2326 david.paterson@nzfarmlife.co.nz Subscriptions: www.nzfarmlife.co.nz subs@nzfarmlife.co.nz P: 0800 2AG SUB (224 782) Printing & Distribution: Printers: PMP, New Zealand Distributors: Gordon & Gotch (NZ) ISSN 2230-2697 (Print) ISSN 2230-3057 (Online)

NZ Dairy Exporter Sign up to our monthly newsletter www.nzfarmlife.co.nz/e-newsletter

Contact: Check out some of his recent work on his website www.bradhansoncreative.com

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

MILKING PLATFORM SOUTH WAIKATO

Making the most of the hash browns Christmas day strategy: ‘Discover’ a water leak, ideally at the back of the farm. Again, this is a job that needs to be done properly and should not be rushed.

Christmas is coming and it looks like Sam Sherrard’s having all the rellies coming to stay at Ngaroma.

othing stays the same around here. Recently we had the opportunity to join a local dry-stock discussion group. Perfect timing as we start our dairy beef operation. The group is funded through the Red Meat Profit Partnership. Along with a huge number of acronyms and jargon the group can attract $34,000 of government and industry funding to cover guest speakers, convenors and analysis. It seems a great scheme for the farm consultants who often convene the groups and fees once pre-visits are accounted for can run into the thousands (two to three). The first day was very good and we all learned something from the excellent speaker. However, what was really sheeted home to us is the huge value that Dairy NZ discussion groups provide, effectively for free to levy payers. We particularly value the special interest groups that Dairy NZ runs, for example the excellent Once a Day groups. The odds and ends of potato chip production are recombined to create one of life’s real indulgences, as a friend so eloquently puts it “Hash Browns truly are the food of the gods”. In the same way that Mr Wattie is able to perform this alchemy, we need to be more

proactive with how we deal with bobbies, a co-product of our dairy production system. I wonder how long it will be acceptable to truck four-day-old animals long distances to slaughter. An increase in minimum age for transport would have significant impacts on the facilities required for calves onfarm. Longer-term will we end up with a system that demands these animals are carried to six months or older? An update to the current DIRA rules could give processors wide ranging powers over onfarm operations. Sexed semen offers a beacon of hope, but the decrease in conception rates compared to conventional semen mean a technology breakthrough is required. Alternative production systems (being explored by Massey University) will also be required to figure out a way to accommodate the additional animals. I am a little hesitant to jump straight into the zero bobby movement but I do believe that this is the way we are heading. Like it or not we need to turn our scraps into metaphorical hash browns. Christmas can be a stressful time and I would encourage you to keep an eye on your friends and neighbours. Make sure they don’t fall victim to predatory family members who will take advantage of our

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

need to be home to milk the cows and decide that Christmas ‘will be at your house this year’. My family was planning to have celebrations in Hawke’s Bay, too far for us, so we said we will have a quiet day at home – after our usual pre-Christmas visit to the in-laws. It was not too be, as one by one my family members declared that they would in fact be spending the day in Ngaroma. Now first I will say, obviously, I am very pleased to be seeing most of my family at my small house, miles from anywhere, with little chance of escape. For others though you may find these handy tips useful for getting through the big day. 1. Make sure the irrigator needs to be attended to, preferably a paddock shift – not only is this time-consuming but the nature of the task means you are unlikely to have any pesky in-laws or out-laws wanting to tag along. 2. ‘Discover’ a water leak, ideally at the back of the farm. Again, this is a job that needs to be done properly and should not be rushed. Pro-tip: a shaded water trough can keep a six pack of beer at a very drinkable temperature – a nice IPA suits this job perfectly. 3. If things get really desperate (I would only use this measure in a dire situation), you could milk in the afternoon. I hope everyone has time to spend with their family and if you need to milk, consider going once-a-day if only just for the big day. Better living everyone! 11

MILKING PLATFORM CANTERBURY

Keeping your farming mojo alive

Despite feeling his farming mojo is under attack, James Davidson is relishing the prospect of his milk bottling project.

houghts of a 40-hour week with every weekend off, no care and no responsibility, occur. We’ve all had those days when we’ve thought bugger it, I’m done. But for some reason we just keep pushing on, pushing for various reasons to do what we love doing every day, that is farming. Many a man and woman have been and gone from the industry we all call our own. Any farmer reading this should pat themselves on the back. Farming is hard yakka and tests us in so many areas but we’ve stuck at it. To fight through those sh*t days you have to pick out the good days, find the things that keeps you excited, I like to call it your farming mojo. Keeping your farming mojo alive and kicking can some days be tough. When the going gets tough you need to remember why it is you wake up every day to be a farmer, sometimes it’s farm-related or for some the farm is a tool to leverage other activities. We all need some mojo now and then, whether it’s a love for your genetics, chasing the dream of farm ownership or even knowing at the end of the day you’re only 10 minutes away from having that new boat in the water. A positive farming mojo makes the sh*t days fewer and keeps farming exciting. What gets your #FarmingMojo cranking?

I would be the first to say my #FarmingMojo has lessened over the last six months. It’s probably a direct result of a burnout, too much time at the coal-face onfarm and not enough time looking over our business, or as my wife would say, just having a day off! What seems to be giving my #FarmingMojo a boost of late is our milk bottling project. I’ve visited a few similar operations over the last month and it’s an absolute buzz to see something you’ve been dreaming about for so long in operation. I’m like a kid in a candy shop every time I walk into a processing room. It’s definitely what gets me out of bed in the morning, and I’m excited about the adventure ahead. When asked what the future of the adventure might hold, I say to most people, ask me in 12 months because we are definitely venturing into the unknown. From buying processing equipment from the other side of the world to learning the ins and outs of converting to organic farming we are definitely well outside our comfort zone and I couldn’t be more excited. We are hoping to have milk flowing into our bottles by early 2019.

When asked what the future of the adventure might hold, I say to most people, ask me in 12 months because we are definitely venturing into the unknown.

Angus absolutely loves his little sister – and the farm bike.

The rest of the farm I now refer to as the “big farm” is ticking along well. A very fortunate spring has left little need for the New Central Plains irrigation scheme, however I can’t see that lasting. With 200mm above our annual rainfall, Canterbury is likely to be destined for a hot and dry summer. In family news, we are very excited to announce the safe arrival of our little girl Margot Isabel Davidson! She arrived very speedily on October 24, weighing in at a healthy 8lb. Angus absolutely loves his little sister, as do we, and she is the perfect addition to our family. We can’t wait to watch our little pigeon pair grow up together on the farm and get into mischief at every turn.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

MILKING PLATFORM SOUTH CANTERBURY

We all need to start selling ag to youth

South Canterbury’s Coles family are doing their bit to encourage local young people into agricultural careers. Frances Coles outlines the family’s scholarship programme and relates the stories of some of the recipients.

uch is made of the lack of young Kiwis choosing to follow our footsteps into agriculture. In recent years the face of the dairy industry in many parts of the country has changed considerably, with a large number of migrants being employed to ‘fill the gap’. Back in 2012, Aaron and I decided to try and do our bit at a local level to lift the profile of farming and associated professions, by launching the Coles Family Agriculture Scholarship at our local high school. It offers $2000 to a school leaver who is continuing into study or work in the wider agricultural field and can display a real passion for farming. Over the years many have applied with aspirations ranging from equine studies, to rural banking, vet nursing and beyond. Recently I took the opportunity to talk to a couple of our past scholars about what they were up to now, find out what they still enjoy about agriculture, and seek their opinions on what we need to do to make ag appealing to young people. Valerie Hendriks was our first ever scholarship recipient and has been travelling the world since completing her vet technician studies four years ago. “I’ve travelled and worked in four different countries, but it’s nice to be back home now,” she says. From a dairy farming family on the outskirts of Geraldine, Valerie is proof that farming offers skills that are transferable to other locations and professions. She still enjoys the opportunity to work outdoors, relating daily to other farmers as she works for the local vets, being exposed to a variety of experiences daily.

Valerie thinks there is still more work to be done in changing many secondary students’ attitudes towards farming. “Dairy farming is not for ‘dropkicks’ and even though there are some repetitive tasks involved in the job sometimes, people need business skills too as they progress to management and beyond.” She also believes ‘media bashing’ dished out from both some elements of the mainstream and social media is not helpful, tarring all in the industry with the same brush when a small few behave negatively.

‘Dairy farming is not for ‘dropkicks’ and even though there are some repetitive tasks involved in the job sometimes, people need business skills too as they progress to management and beyond.’

The key, in her mind, is giving more students a chance to get out and experience farming for themselves through initiatives such as the Gateway Programme. Bailey Chisnall, our 2015 scholar, agrees the perception of agriculture needs to change for students, from ‘just farming’ to ‘running a business’. He says a stronger focus on the business management aspect of agriculture subjects at secondary level could help widen the appeal. In China with the Prime Minister’s

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Bailey (far left) on

his scholarship tri

p to China.

Scholarship Group doing a paper on Chinese agribusiness, Bailey has completed his tertiary studies and is planning on completing six months’ work fencing before travelling to England to work on an arable farm for the remainder of 2019. “I find there are good opportunities and livelihood in ag,” he says. Talking with these two confirmed what I personally suspected – that there is still a way to go to sell the appeal of farming to many young people at a pivotal point in their education. And as always, the best approach for us is likely to be a grass-roots one. That’s why we’ve made the commitment to our Coles Family Scholarship, and why many other farmers take the chance to get involved with programmes like Fonterra’s Open Gates and the DairyNZ supported school visits to farms. Many young New Zealanders are now two or three generations removed from any familial tie to farming and we need to each ask ourselves, what are we doing to bring these people into contact with our way of life? How can you share your passion for ag with a potential up-and-coming young farmer today? 13

Focus on the grass

INSIGHT

UPFRONT PASTURE SUMMIT

Words by: Sheryl Brown

had less research funding available to them and the potential to increase production ew Zealand and Irish dairy was limited, he said. farmers need to focus on These systems had about $7.5 billion in low-cost grass systems to be their research pot and with an average of competitive in the future, Irish 3% increase in productivity every year it and NZ dairy farmer Michael Murphy says. had the potential to double productivity in “Only NZ and Ireland live or die on 24 years, (using the Rule of 72). pasture-based systems. We That was compared to should be very mindful of the grass yield which only WHAT DRIVES increased by 0.2% a year, competitiveness of the grassPROFIT based industries as against the and would take 360 years confinement industries over to double its yield. time.” “Grass systems are NZ and Ireland had similar highly competitive now. dairy industries and together The question is will they supplied 4.2% of the world’s be competitive in 10, Low cost milk. 20, 30, 40 years. It’s a Both countries were question NZ and Ireland seasonal calving, grass-based should always be mindful and low cost and both had of.” MS/ha to be globally competitive in To remain competitive their niche, because the rest of grass-based systems must the world’s milk supply came remain low-cost and from grain-based confinement sustainable. Yield/cow systems (80-85%) or a hybrid Farmers in Ireland grain and grass system (10and NZ had focused on 15%). production per cow or per hectare to the In comparison to grain-based detriment of their profitability, Murphy confinement systems, grass-based models said.

55% 33% 17%

GRASS%RICH OR%GRASS%POOR?

%%Grazed%Grass%in%the%Dairy%Cow’s%Diet Adapted%from%Dillon%et%al,%Moorepark

Michael Murphy – NZ farmers need to focus on low cost systems to remain profitable and competitive in the future. Photo: Stephen Barker

That focus on production had led to more intensification to drive more production which had in turn lifted expenses. In NZ for every $1 of boughtin feed the farm working costs had increased by $1.64 (Waikato) and $1.77 (Canterbury). Farm working expenses in NZ lifted significantly after the payout lifted in 2007/08 and farmers responded by increasing the feed and subsequently costs. The farm working expenses had not really come back down since then, he said. “That has led to much lower profitability and much higher debt on farms.” Findings in NZ and Ireland showed the stronger correlation to profitability lay in focusing on low-cost systems. Low-cost systems correlated to 55% of profit in NZ, while focusing on production/ha was 33% and production/cow was just 17%. “Yet people focus on increasing milk yield not dropping cost. And that is, I’m suggesting, the very wrong focus.” Some farmers could go down the route of intensification and could achieve very high profit, but it’s only 3-5% of farmers that could make it work, he said. “For 95% there is a cost to it and the cost is more capital, more complexity, more work, more stress, more risk, less profit, less time with the family.” Alternatively, increasing the percentage of grass in the cows’ diets meant more profit, more free time, more family time, better business options and more wealth creation. The key was to keep the focus on profitability not profit, he said.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018 19

NOTEBOOK FARM CHAT

SHOWTIME New Zealand agriculture comes to town in December at the following regional A&P shows: Whangarei Agricultural & Pastoral Society, December 1, 2, Barge Showgrounds. More? www.whangareishow.co.nz Te Kauwhata Agricultural & Pastoral Association, December 8, Te Kauwhata Domain. More? tekauwhatashow@gmail.com Feilding Industrial Agricultural & Pastoral Association, November 30, December 1 Manfeild Park. More? feildingshow.co.nz Taranaki Horse & Pony All Breeds Show, December 2, Stratford A&P Showgrounds.

More? mousejt@xtra.co.nz Motueka Agricultural & Pastoral Association, December 1, 2, 62A College Street, Motueka. More? motuekashow. co.nz Tokomairiro Agricultural & Pastoral

Society (Milton), December 8, Tokomairiro A&P Showgrounds, Milton. More? tokoap@xtra.co.nz Wyndham Agricultural & Pastoral Society, December 1, 16 Balaclava Street Wyndham, gav.fi.mccabe@xtra.co.nz

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INSIGHT

UPFRONT ANIMAL HEALTH

Herd improvement regulation to generate environmental and animal health benefits. he Livestock Improvement In a discussion paper on the issues under Corporation, a cooperative review, the MPI says the dairy industry’s with 10,377 dairy farmer future ability to achieve optimal rates shareholders, sits in one camp of genetic gain depends on an ongoing on a key data-gathering issue being supply of, and access to, essential data. examined in a Ministry for Primary The review’s key objective is ensuring the Industries review of regulations governing regulatory regime ensures the industry has the livestock improvement industry. the data it needs and that the availability Federated Farmers sits in another. of data for industry-good purposes keeps Both acknowledge dairy herd pace with changing needs and technology. improvement adds substantial value to the The discussion paper says the regulations national economy by contributing to the have not kept pace with modern animal breeding of more evaluation productive dairy requirements The review’s key objective animals through and cover only herd testing, herd part of the data is ensuring the regulatory recording, animal needed for animal regime ensures the industry evaluation, and evaluation. has the data it needs and artificial breeding. Supply of the that the availability of data DairyNZ estimates remaining data for industry-good purposes the genetic relies on voluntary keeps pace with changing improvement of arrangements New Zealand dairy and the mix of needs and technology. cattle contributes regulated and $300 million a unregulated data year profit to dairy creates difficulties farmers and over a 10-year period would for people accessing data. add $257,730 to the bottom line of an The current prescriptive approach, individual farmer with an average-sized specifying a list of data to be provided dairy herd. by herd testers, does not accommodate Herd improvement also has the potential changing needs or farming practice and

Words by: Bob Edlin

is not readily updated, the paper says. Any prescribed list can quickly become outdated and changing the regulations can take time. Several other issues are under review, including the role and membership arrangements for the Access Panel, monitoring of and reporting on the use of core data, and the processes relating to the certification of herd testers. Three options for the Government are proposed for the key issue: • Keep things as they are, retaining the regulated ‘core’ dataset of 46 data fields, and relying on herd testers to provide additional data to the Dairy Industry Good Animal Database (DIGAD) voluntarily. • Expand the regulated dataset to include the additional fields needed to calculate breeding values and animal evaluation indices. • Provide a more broadly focused mechanism that allows the regulated fields to be updated without requiring amendment to the Act or the Regulations. The LIC favours no change. It submitted that the current herd improvement model supports and incentivises investment, although “minor adjustments” could be made to improve the regulatory framework.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

REGULATIONS UNDER REVIEW

It contended the current core data, supplemented by voluntary arrangements for certified herd testers to provide additional data for animal evaluation, achieves the optimum balance between ensuring accessible core data while promoting industry innovation in data collection, analytics and use. The “wholesale reform” resulting from the second and third options would stifle innovation, increase costs for farmers, and ultimately harm dairy farmers’ long-term interests by introducing significant uncertainty around the ownership and benefits of innovation. This would discourage vital long-term research. “In our view, the system and structure that has served NZ dairy farmers for over a century is not broken,” the LIC insists. The LIC shareholder council, similarly, “strongly supports” the no-change option, noting that non-core data is already shared freely and data access does not limit current or future herd improvement needs of the industry. Federated Farmers, however, favours the third option, providing a mechanism that gives flexibility for core data to be redefined without requiring formal regulatory amendment be adopted. A single core database for dairy cattle is paramount to the success and improvement of the NZ dairy herd, the feds argue.

Setting up a system which encourages more farmers to contribute to this single core database will lead to greater gains in the improvement of the national herd. Famers should be able to opt to give firms permission to access the data about their own cows, but the limited number of fields in the core database makes it difficult for these firms to get information from herd improvement firms and breeding companies. DairyNZ agrees the flexibility of the third option, enabling core data to be redefined without requiring formal regulatory amendment, “provides the optimal construct” to meet the animal evaluation needs of the NZ dairy industry. But it insists a regulatory framework is still required to ensure core data is supplied to the core database. CRV Ambreed says the MPI discussion paper makes no mention of “the most significant barrier to the dairy herd improvement industry’s animal evaluation and data needs being met” – the pricing of animal evaluation outputs and a regulatory regime which allows LIC to charge “excessive and unjustifiable prices”. LIC pricing is supressing competition, which is restricting diversity and innovation in the industry. As a result, the country is missing out on opportunities to drive genetic gain.

NEXT MONTH: The competition question.

The Ministry for Primary Industries is reviewing the regulatory regime introduced in 2001 to govern the collection and storage of data in the dairy herd improvement industry. The regime regulates the collection, management and protection of data in the New Zealand Dairy Core Database, oversight of core data by an Access Panel, the certification of herd testers, and monitoring and reporting. It is set out in a part of the Dairy Industry Restructuring Act 2001 (DIRA) and Dairy Industry (Herd Testing and New Zealand Dairy Core Database) Regulations 2001. The review is separate from the review of DIRA provisions which regulate Fonterra’s activities to protect the long-term interests of farmers, consumers and the economy. But any changes recommended on the herd-improvement regulations may be incorporated in a DIRA Amendment Bill. Before 2001 herd testing and data management were carried out exclusively by the Livestock Improvement Corporation (LIC), then a subsidiary of the New Zealand Dairy Board. When the board and major dairy cooperatives merged to form Fonterra, the DIRA restructured LIC into a farmer-owned co-operative and paved the way for competition in the herd-testing market. The legislation required LIC to manage the Core Database, a regulated set of 46 data fields about cows’ milk production, their parentage and key events such as mating and calving that are collected by herd testers. A 2009 report recommended the Core Database be owned and managed by an industry-good organisation and in 2013 DairyNZ and LIC agreed to transfer it from LIC to DairyNZ along with additional (unregulated) data. This includes data received from CRV Ambreed and dairy breed societies. The total data make up the Dairy Industry Good Animal Database (DIGAD). Some technical issues remain unresolved, however, and the transfer arrangements have not been completed. While DairyNZ develops the necessary IT capability, LIC continues to play a role in the operation of the Core Database. The DIRA also established an Access Panel to decide on applications to use core data. The panel must grant access where this is likely to benefit the country’s dairy industry and may grant access if it is satisfied no harm would be caused. The panel’s statutory role relates to core (regulated) data but not to unregulated data held in the DIGAD or owned by other parties, such as herd testers, herd recorders, or farmers. Access to unregulated data is by negotiation with LIC or CRV Ambreed at a price they determine.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

PASTURE December 2018

Making the most of novel endophyte: how to do best by your animals

Introducing Captain CSP

It’s been 30 years since Barenbrug Agriseeds became the first private company in the southern hemisphere to start researching and developing novel ryegrass endophytes. And every year, we learn more about this fascinating, complex relationship between ryegrass, and its natural fungus. Our aim has always been to get the best out of endophyte in terms of animal health, while maintaining strong control across a range of insect pests. This is a balancing act, which we believe we have successfully achieved. If you look at how different endophytes stack up in each of these categories, it becomes clear that NEA endophytes from Barenbrug Agriseeds allow you to do the best by your livestock at the same time as protecting your pastures. AR1 endophyte, for example, has very good animal performance and health. But it is weak against black beetle and root aphid. AR37 endophyte has good to very good control of key pests. However, the chemicals it produces are not always animal friendly. It is not suitable for deer or horses, and can cause severe staggers in sheep and lambs.

NEA endophytes bridge the gap. They pose no risk of ryegrass staggers in dairy cows, so they have a very good animal safety record. This comes with good control of key pests to support pasture persistence. Our research on endophytes, and their relationship with their parent ryegrasses, continues to evolve as we look for the next generation of endophytes for New Zealand pastures. Since 2006, we have partnered on endophyte discovery with AgriBio, a world-leading agricultural bioscience R&D operation in Australia. This work has led to molecular identification of more than 400 potential new endophytes, the best of which enter our NZ pasture development programme. Here they are put through a rigorous testing programme, including animal safety trials, regional persistence trials, insect bioassays and alkaloid analysis.

Barenbrug Agriseeds science manager Colin Eady at AgriBio Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Captain CSP is our newest pasture cultivar, and the first plantain developed through Barenbrug Agriseeds’ plant breeding programme. We’ve called it a ‘cool season plantain’ because of its ability to keep growing in cooler months of the year when traditional plantains are dormant. Not only does Captain CSP have a cool season advantage over other commercially available plantains, however, it grows strongly in other seasons, particularly summer. In Barenbrug Agriseeds trials, it is a top ranking variety in overall DM yield, with excellent summer production. Plantain has a deep, coarse root system. This enables it to hold on longer into summer than ryegrass, producing high quality feed through drier, hotter months of the year. Captain CSP also offers potential environmental benefits. Because of its high cool season growth, it utilises soil nitrogen in winter, the highest risk time for N leaching. Seed for Captain CSP is available in limited quantities this season. For more information visit our website www.agriseeds.co.nz.

For further information freephone: 0800 449 955, email: mail@agriseeds.co.nz or visit: www.agriseeds.co.nz

INSIGHT

UPFRONT OPINION

Beyond the fire BakerAg dairy consultant Chris Lewis penned this opinion piece for his monthly newlsetter Milk Lines to voice his concerns for the challenges he foresees in the next five years of the dairy industry.

here is real concern for the New Zealand dairy industry. Those farmers that are aware of and prepared for the challenges facing them over the next five years can survive the fire that all must travel through. Many will think we are in the fire now, but our world is only warming up, in more ways than one. There are clear signals telling us that we are getting much closer to the flames. We can see the flames and we can feel the heat of the fire, but we are not burning. We will be burning inside two years and it will last for at least five years. Those that want to be successful in dairy farming will be working in a world of significant change for up to a decade. We know our farms will have to reduce the amount of nutrients lost from the system. Right now most farms are recording their environmental performance, few have started changing it. This must happen soon if we are to keep

our social licence to farm. There will be technology changes and “tax” associated with the production of greenhouse gasses. Right now we don’t have any direct charges or obligations. But it will happen. While acceptable returns are being made at $6.50/kg milksolids (MS), dairy farming is not giving a premium return. A good dairy farm delivers a 6% return on capital, but that’s not enough when you consider the risk. We will see re-structuring as the business of milk production looks to increase economic returns. Currently, we cannot sell dairy farms. As mentioned, we don’t have the premium that is needed to attract the required capital, so a revaluation of dairy land is looming. Dairy farms are not selling because vendors don’t like the money – very soon they won’t have a choice. Last year’s elections broadcast dairy farming as a business of bad repute. As a consequence we now have a recruitment

vacuum and very little to promote dairy as a career nationally. We have building pressure in our efforts to provide farm staff with lifestyle-friendly rosters, yet there is a conflicting negative trend in output per fulltime equivalent. Our farms will need to change hands because of ageing stakeholders, but succession is stone-walled through a lack of revenue or farm owners failure to implement a strategy.

AS WE PASS THROUGH THE FIRE, WHAT WILL WE SEE? The difference between feeling the heat and actually being in the flames will be when the following is realised. Compliance pressure will see dairy farms exit supply because owners cannot, or will not change to meet regulations. “Policemen” will arrive on farm and take evidence of non-compliance. Farm systems will change to meet environmental standards. This means

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

much lower stocking rates, expensive infrastructure and technology adoption – not for the purpose of progress but just to keep the business operating. This next point is a “biggie”. We can no longer rely on banking favouritism for the rural sector. As a marginal-returning sector, dairy farming doesn’t make enough relative to the debt it carries for farmer and banker. Financiers are shifting from a request for principal repayment to a demand. This pressure will increase plus banks will seek greater margins consistent with what they get financing alternative industries. In this period of fire we will see more farms “encouraged” to sell at discounted prices as traditional financiers follow through on the expectations of the bank’s executive. Over the last few decades dairy farming has given a 10% ROC as a mix of EBIT and capital gain. While we are in the fire there will not be capital gain, so farms will sell at a price that enables those willing to invest, scope for a 10% return. This will mean a capital loss for some on the other end of the deal. We will see family businesses sell because they can’t make enough to fund more than one generation, or the next generation are neither inspired to take over nor given enough lead-in time to do so. People who stick with dairy will need a lot of faith. It’s going to be hard when you see businesses burning around you. We will lose good people because they will lose conviction. There will be push-back on falling staff productivity but conflict will remain with the lack of recruitment and skilled people. Our new generation of dairy farmers will be in the heat of the fire to learn to manage compliance by understanding it and developing systems to administer it. The paperwork cannot be indefinitely delegated to 3rd parties, farmers must engage.

Processors and marketers will not be insulated from the heat. These businesses will be held to account for the lack of premium and failure to do anything more than dehydrate the milk and send it offshore in a fancy can.

BEYOND THE FIRE Those who survive the next two to five years will be called on to build a new emerging world in dairy. There will be fewer dairy farms in NZ. It will remain a home-grown foragebased business. Perhaps even more so as the market tells us this is what they want. But marketers will need to turn this into a premium. There will be a return to true cash profits. Our farm businesses will be structured with less (traditional) debt. To give a real return in a commodityreliant market we will need significantly more equity – probably more than 50%, perhaps more than 70%. Resilient farm systems will be low debt with consistent operating costs that are in synch with physical performance. There will be less middle ground as our farms become either extensive, simple and repeatable, or operate with a lot of concrete, steel and moving parts to deliver intensive high performance. Both forms of operation will still need to be efficient. The new world farm manager will have strong back office skills, adept at the paperwork with good processes around financial and environmental compliance. We will see more rapid adoption of technology onfarm, compared with the current snail’s pace. More automation will be adopted inside the farm gate to enable farms to run with fewer staff, or be more productive with the same staff. “Telling the story” will be real for farmers as the market gets inside the farm gate. The consumer will expect to see their

food being produced and peer pressure will increase on those owners of properties that don’t conform to a high standard of operation and appearance. We will learn about resting on our laurels, become politically more astute. Promotion of the industry will be proactive, not reactive. To restore community and market confidence every farm will demonstrate excellence in animal welfare, natural resource stewardship, and promote a rewarding career. To support this, auditing of the industry and individual businesses will be a part of everyday life. What are the remaining questions? This fire will purify, removing the chaff but it will not solve every issue. Who will own our farms? They will have to be brave, patient people who know the industry well. What will remain of the career pathway, farm assistant to farm owner? If today’s dairy farm doesn’t produce milk in the future, what will it do? Lifestyle subdivision and vegetable production can only soak up so much land. To the people who intend to travel through the flames and come out the other side, successful and prosperous, do not underestimate the determination you will need and the skills you will require to do this. For rural professionals your commitment and support must be genuine as there will be no room for businesses that fail to give a real return on the farmer’s investment. Have a view or an opinion? Email to The Editor, Dairy Exporter magazine, Jackie.harrigan@nzfarmlife.co.nz

Milklines is monthly publication giving the farm consultants perspective and is available by email through BakerAg.co.nz

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Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Pressure on markets may ease October saw NZ milk production hit a new record, NZX senior dairy analyst Amy Castleton writes.

he global dairy market is largely driven by supply-side dynamics at present. While there have been ebbs and flows in demand, focus is very much on milk production and resulting commodity production. New Zealand milk production has been the largest driver over the past few months, though the volume of milk produced by Europe and the United States has also been relevant. Increasing milk supplies have put pressure on dairy commodity prices for a number of months now, but it is starting to look like the pressure may ease as we head through 2019. NZ’s milk production has been performing very well so far this season, as climate conditions have been well suited for pasture growth throughout spring.

Thousand Tonnes

2000

Most areas continue to look fairly green for the time of year, though soils are starting to dry out. October production jumped 6.5% on a milksolids basis, with most NZ dairy processors indicating they had an excellent peak this year. The volume produced this October is the most NZ has produced in any one month since records begin. Season to date NZ milk production is up 6%. Expectations are that excellent production figures are likely to continue until at least late in 2018 or early 2019, given how good climate conditions have been. Growth is expected to slow late in the season, however. NZ has had exceptional autumns for the last two seasons, but it’s unlikely this will happen for a third time.

Milk production year on year change: key exporting regions

1500

Total

1000

NZ Australia

500 0

Feb 16

-500

Aug 16

Feb 17

Aug 17

Feb 18

Aug 18

-1000 Sources: DCANZ, Dairy Australia, USDA, Eurostat,

Thousand Tonnes

3500

NZ monthly milk production

3000 2500 2000

2016

1500 1000

2017

500

2018

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: DCANZ

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

INSIGHT

UPFRONT MARKET VIEW

Meanwhile, production is finally starting to slow in Europe after generally exceptional growth since early 2017. In the first six months of 2018, European milk supplies grew an average of 2.2% each month. Production in August and September was practically flat on year-ago levels, however, lifting just 0.2% year on year. This seems to be a delayed effect of the dry summer the region experienced. Milk production did not really slow through the summer months, but autumn and winter feed supplies did begin to get used – which is now starting to affect milk production as farmers don’t have sufficient feed on hand to be lifting their milk production. US growth has largely continued at a steady pace over the past couple of years. While there have been a few slow months, for the most part US milk production has grown at about 1% per month this year. Costs have crept up, eating into margins. So expectations are that growth will start to slow further, particularly as some US dairy farmers now need to exit the industry. US milk production growth rarely turns negative, however, as US farmers tend to pour resources in to keep milk coming. As long as domestic consumption of dairy commodities remains reasonably steady, ongoing growth in US milk supplies is unlikely to have much impact on global markets. Australian production has also performed poorly this season, as the country has been hammered by drought. While Australia is not as large an exporter of dairy commodities as it once was, the weak production still has some effect on sentiment in global markets. The growth out of NZ is likely to continue to affect some dairy commodity prices, at least in the short term. This is particularly the case for whole milk powder, where NZ is the world’s main supplier. However, declining growth in other regions should help to support global markets, and we should see some recovery in prices next year – which should mean another good milk price for NZ dairy farmers next season. 23

Irish farmers carry on milking inside Brexit bubble

GLOBAL DAIRY IRELAND

Nick Whelan, chief executive of the Dale Farm Group, rish dairy farmers on both sides Northern Ireland’s leading milk of the border have no choice processor that is solely owned but to carry on milking while by 1300 local dairy farmers, sees their futures are determined the pros and cons of Brexit. somewhere in London and Brussels offices. “Fundamentally, Dale Farm, like almost The big Brexit bubble is something every business, will have a real issue if of a gamechanger for the entire Irish we have the disaster of a no deal, no agricultural sector but more so for the dairy transition, Brexit,” he says. industries. “Our supply chains operate on a justAnd that bubble could burst if the in-time basis for incoming raw materials stubborn politicians on all negotiating and packaging and also outgoing finished sides do not compromise and end up with products. For cheddar, it is essential we a no deal Brexit plan. maintain access to our EU and thirdThe main issue throwing the Brexit talks country markets. into disarray is the international border “Even a three to six-month delay in between Northern Ireland (NI) and the establishing export certificates could have Republic of Ireland (RoI) and how it will a real effect on our cash flow as milk will emerge post-March 2019 when the United continuously be paid for but our cheddar Kingdom leaves the European Union. would be sitting in warehouses waiting Neither NI nor the RoI for European Commission want a hard border as that clearances. will disrupt lucrative trade “On the positive side, deals that currently enjoy Dale Farm is very well tariff free movements. positioned in the event of Homing in on the dairy either a hard or soft Brexit. sectors, there were 2635 We simply need the transition dairy farmers in NI and time to enable our supply 18,000 in RoI at the end chain to adapt. of 2017 milking 315,782 “Obviously, the economic cows and 1.4 million cows boom we could experience in respectively. Northern Ireland in the case Tara McCarthy, Bord Bia. While dairy farmers of having unfettered access to in RoI are nervous about both GB and the EU, plus its what the future Brexit deal will mean for free trade agreements, would also drive them, some of their colleagues in NI see our business forward. There is not enough a somewhat brighter future when the UK coverage on the incredible potential leaves the EU, but are heavily relying on a benefits to the Northern Ireland economy good deal. if we grasped this!”

Words by: CHRIS MCCULLOUGH

Nick Whelan, Dale Farm Group.

“Dale Farm is paying 28 pence (NZ$0.55) per litre as its base price, which is industry leading. We have paid the leading milk price for the past seven months in a row,” he says. The UK market is of extreme importance to the Republic which consumes 25% of its dairy and ingredients exports but since Brexit was declared the Irish have been proactive sourcing greater market shares in other areas. Dairy is the number one export sector in the country and has increased its market share in EU markets to 31%, while contracting slightly its market share in other international markets to about 45%. The value of dairy and ingredients exports for Ireland in 2017 reached €4 billion (NZ$6.85b), a 19% increase on 2016. While the UK government has already signed some trade deals with China for dairy produce the Republic is also setting

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

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Irish cows… keep on producing through hard or soft Brexit.

itself up for increased trading with international markets, also targeting China as it is Ireland’s second most important trading partner for dairy produce. The chief executive of the Irish food board, Bord Bia, Tara McCarthy recently signed a Memorandum of Understanding with Wyeth China; an agreement with an estimated worth of €110 million (NZ$118.24m) annually to the Irish dairy industry. Wyeth is a major strategic partner of Ireland in China and accounts for around €350m (NZ$598.94m) of the dairy exports to China which amounted to €666.4m (NZ$1.14b) in 2017. The MOU with Wyeth is a commitment by the company to source all of its dairy ingredients for its Illuma base brand exclusively from milk from Irish farms participating in Bord Bia’s Sustainable Dairy Assurance Scheme under the Origin Green programme, Ireland’s national food and drink sustainability programme. “This agreement is very good news for the Irish dairy industry and a vote of confidence in the Irish food sector by one of its strategic partners, committed to working with us on sharing insights on Chinese consumers and building awareness of Ireland’s premium food offering in the market,” McCarthy says.

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With 16 years’ experience, award-winning multimedia agricultural journalist, Chris McCullough travels extensively around the world to bring readers the freshest and most relevant international news. Chris grew up on the family dairy farm in the heart of Northern Ireland and is based on the country’s east coast. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

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ven if the forecast payout is looking woeful, West Coast farmers Paul and Andrea Stevenson keep adding concentrates to the cows’ diet to achieve high production because that spreads costs and the load on their debt. It’s a policy that works because despite grappling with a lower payout from Westland Milk Products through the 2016-17 season compared with other milk companies, their business was a finalist in the 2018 Dairy Business of the Year awards. Their business began as an equity partnership at Taramakau Settlement when they were just 26 and 22 years old respectively and when they bought out their partners eight years later they went into their first season as farm owners just as the global financial crisis hit and then the dairy company clawed back money. They survived and gained the confidence to face their next battles in dairying, such as the $3.80/kg milksolids (MS) for the 2015-16 season.

BUSINESS DBOY

‘There’s a lot in BW. A lot of people mock it, but if you look at our herd, the higher-producing cows will be higher BW.’

Grappling with a low payout An equity partnership was the entrée to farm ownership for West Coast dairy farmers Paul and Andrea Stevenson. Anne Hardie reports.

They have travelled a long road to get to an award-winning dairy business since taking on the equity partnership in their early 20s. Even at that young age they had a couple of rental houses in Greymouth including one Paul had bought when he was 19, so they were able to put $100,000 into the equity partnership. Back then it was a smaller farm next door milking 240 cows and they teamed up with the Robb family who owned the farm, forming a company to lease the farm. After two years the company bought the farm and the Stevensons were 28% shareholders. “It was a great partnership,” Andrea says. “They were really supportive partners but let us manage ourselves. An equity partnership with the right partners is such an awesome way to increase your potential earnings.” “I think it’s better than 50:50 sharemilking,” Paul adds, “because your directions are pretty well the same and you both want the value of the property to increase. Whereas with sharemilking you have two businesses that aren’t going in the same direction.”

Paul and Andrea Stevenson went from equity partnership to farm ownership.

When they bought the entire business, it was “spectacular timing” admits Andrea. Pretty much the worst timing possible in hindsight, but an opportunity as well. “We often say we don’t know if we would be in a farm ownership position had we missed that window of opportunity because everything is a lot harder since then in terms of lending restrictions, equity needs and things like that. Although it was incredibly stressful at the time, in a lot of ways we were lucky.” “I think we did five budgets that year!” Paul remembers. “And then we told the bank we aren’t doing any more,” Andrea continues. “The costs aren’t changing, just the payout is changing and we’d cut everything we could cut out.” Today with a family of three girls and seasoned dairy farmers, they have confidence in their business which milks 560 cows on 214 hectares at Taramakau Settlement; an area of largely river flats up the river from Kumara. During the 2016-17 season which was evaluated for the awards, the farm achieved 1247kg MS/ha and 478kg/cow to return an operating profit of $2,085/ ha when Westland Milk Products paid out $5.18/kg MS. In total the Stevensons produce about 267,000kg MS and their cost of production is put at $3.52/kg MS.

Some years, payout has barely covered that, but higher production gets them through. To achieve high production they have bred a Jersey-Kiwicross cow that is a good converter; they are flexible in their farming management to adapt to the variations in each season and they feed each cow 660kg of concentrates through the year. About two thirds of that is palm kernel and a third dried distillers grain (DDGS). Initially they milked a Jersey herd but the stock was getting smaller, so they began crossbreeding with Kiwicross and now use both Jersey and Kiwicross bulls which gives them more choices for selecting high breeding worth (BW). The herd now has a BW of 114 and a production worth (PW) of 130 and Paul insists BW has been paramount to producing cows that convert feed well. “There’s a lot in BW. A lot of people mock it, but if you look at our herd, the higher-producing cows will be higher BW.” A crucial aspect in their management is the 240-cow HerdHomes shelter that was built when they were equity partners with the Robbs. It enables them to feed the cows supplements such as palm kernel, silage or hay in any weather with minimal wastage, while the in-shed feed system enables them to feed the DDGS for protein. Through winter, the lighter herd sleeps

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

KEY FACTS • Farm owners: Paul and Andrea Stevenson • Location: Taramakau Settlement, West Coast • Farm size: 214ha • Herd: 560 Jersey-Kiwicross cows • Production 2016-17: 478kg MS/ cow, 1247kg MS/ha • Operating profit margin: 30.2% • Operating profit/ha: $2,085 • Cost of production: $3.52/kg MS • Operating expenses: $3.86/kg MS • Pasture harvest: 11.4t DM/ha • Pasture % of feed: 78.6% • Labour efficiency: 140 cows/FTE • Return on capital: 6.5%

in the herd home and during the day they head out for a feed on the fodder beet while the “fatties” get their turn for a feed of supplements. Then it’s used through calving during marginal weather. By using the herd home, they can manage their soils and pasture through winter and spring, plus feed the cows efficiently through the year. “We’ve no hesitation on spending money on feed if it’s required,” Andrea 27

says, “and we would prefer to up the costs to keep the feed going into the system to preserve production.” “We know the cows will convert it if we give it to them,” Paul adds. “We’ve seen it in the past where you cut the feed out and you pay for it later on because you don’t do the production and you don’t get the income.” “Especially in the beginning of the season, we’ll feed the cows to full capacity,” Andrea continues, “because the volatility in the season whether it be the payout or the weather is so huge now. And if you cut production thinking the payout is going to be low, you cannot recover that production and our theory is you just keep milking those cows and keep feeding them well and once you get into summer you’ve got a little bit more certainty around payout to make decisions.” Cutting out feed before Christmas is just too damaging to mating as well as production and the ongoing repercussions are simply not worth it, she says. “There’s times when payout has crashed and everyone shuts down their system and cuts out everything, but we almost go against the grain a wee bit and up the feed.” 28

Paul sums it up succinctly: “What happens is you have a crappy payout and you have crappy production so it’s a double whammy.” Feeding the cows well to guarantee production also spreads the debt loading and stops the bank taking a close look at the business because it hasn’t achieved the budgeted production. As finalists in the DBOY awards at a time they were on a lower payout reinforced their reasoning that putting feed into the system and feeding the cows well to maintain production is still profitable. Paul says it also highlighted the fact West Coast farms are undervalued and are a good investment. In their case, their equity is still low which makes them vulnerable, but it still works out less than $1/kg/MS and that’s partly due to investing on the West Coast. The coast does have its challenges though when it comes to soil and pasture management. The farm has heavy soils on the flats and clay on the hill that flanks the flats, plus a typical West Coast climate where rainfall is measured in metres. The ground and pasture can suffer considerable damage in that climate which ultimately affects the tonnage for the entire season.

The herd home and in-shed feed system gives them options, whether it’s due to the weather or if they need to push the cows on the grass to control pasture quality and then make up the difference with supplements. “It can be very hard to control feed when it is growing well as well as when it’s not,” Andrea says. “Sometimes our challenge is not the growth but just harvesting it because the ground conditions are so saturated at times that the cows can’t eat it before they squash it. “The key to our production, especially per-cow figures, is flexibility and we watch the cows, probably more so than facts and figures. The cows tell us pretty quick if the paddock’s not right or they need more. We’re not huge figures kind of people; we’re more gut feeling and monitoring the cows and I think that’s where the potential in our cows is met. We do keep a close eye on the cows.” Farmers are always bombarded with different theories – such as topping or not topping – so Paul and Andrea have learnt to sit back and observe, then take what would work for them and amalgamate it with the information they glean from the cows, with flexibility remaining the

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

The Stevensons’ higher BW cows are also the higher producers.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

key. On the topping debate, they top if the paddock is clumpy so they can get the cows to eat 100% next time, but every year is different. A popular practice they have adopted is fodder beet and they now plant 12ha for winter feed and say it has given the cows a boost going into lactation. Paul says it puts weight on the cows which are now producing 2kg MS/day by the end of August when they used to sit around 1.8 on just balage and hay. “We don’t leave them on it though and they aren’t left overnight,” Paul says. “The last thing I want to wake up to in the morning is to find them out.” Two extremely wet years – which says something in a high-rainfall region – prompted them to renew 14ha of pasture in autumn as well as the usual 12ha of fodder beet. Autumn didn’t give them the usual good growing conditions, so they were left a bit short on pasture that needed to be made up with supplements. They are expecting the benefits of that regrassing to be realised this season, though. Since adopting fodder beet, their pastures are ready to fire as they head into the new season. Flexibility is the catch

phrase again with pasture monitoring. Though supplements are crucial to their production, pasture remains 78% of the cows’ feed and during the 2016-17 season analysed for the awards, the cows harvested 11.4 tonnes drymatter (DM)/ha off the farm. Paul and Andrea employ two staff on the farm, but carry out the pasture monitoring themselves to stay in touch with the ever-changing feed situation. They don’t platemeter the paddocks and their monitoring can vary from weekly to fortnightly or every second day if necessary. “It’s flexible,” Andrea says. “When the growth rates are quite stable the monitoring of it drops back to fortnightly whereas if growth is really variable or under pressure we can be around every second day. We monitor the covers going in and covers going out and what we’ve got ahead of us. It’s a system that works well for us but it’s not this robust formative system that is easy to teach someone or say this is clinically how we do it.” Usually about February the pasture is slowing and so are the cows, so Paul and Andrea switch from twice-a-day milking to three milkings in two days (3in2). Again, it’s flexible and they have switched as early as Christmas. “When we get down to 1.6 (kg MS/ cow) to 1.7, it’s time to go to 3in2 without losing production,” Paul says. It also perks

The HerdHome provides options in a high-rainfall climate.

the cows up at a time they are becoming uninspired about trudging to the dairy twice a day, Andrea adds. Depending on the season again, it’s down to once-a-day milking at the end of the season and the cows are dried off about May 25. The cows are wintered at home, using the herd home and fodder crops, while the R1s are run on two support blocks totalling 70ha and the R2s are with a local grazier, gearing up to return home from July 25 to calve.

Their empty rate is an issue with room for improvement. This season it was 14% and typically sits about 13%, despite 75% in calf within six weeks and a calving span of 9.5 weeks. It’s something they’re working on and last year engaged a nutritionist to analyse their system for empty rate and metabolic issues such as milk fever. Andrea says they are continually learning and there’s always room for improvement. And as Paul says: “There’s still so much we don’t know about a cow”.

The farm stretches along the river flats at Taramakau Settlement.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

BUSINESS WATER

Land use suitability ahead

Words by: Anne Lee

etting up systems to suit the land rather than “massaging the land” to fit with a preferred land use could be what’s required with the systems reset if other actions to protect land and waterways aren’t able to meet objectives. Lincoln University professor in soil and water quality Richard McDowell told the New Zealand Institute of Agricultural and Horticultural Science, Water in Canterbury forum that land use suitability could be a concept used to guide investment decisions and possibly inform policy. McDowell is chief scientist of the government’s Our Land and Water National Science Challenge and explained the concept was framed by three metrics: • Productive potential. What the land can do, what kind of yields are realistically achievable? • Relative contribution. What are the consequences of carrying out the land use in that area relative to all your neighbours? • Is the catchment under pressure? If there’s an objective, set are you well below it or have you exceeded it? “They would inform policy but not set or derive allocation mechanisms,” he says. In some countries and even within NZ parts of the approach are already used to a small degree in setting environmental regulation. In Denmark, for instance, nitrogen attenuation (ability of the soil to “hold on to” nitrogen) maps help inform decisions over uses. Higher nitrogen loading activities might be possible in areas with greater nitrogen attenuation. Over time, land uses could be moved from properties in one area

to another or even within properties. The land use suitability hypothesis results in a mosaic where land uses are in the right place, at the right time to deliver environmental, production and productivity outcome goals. The mission objective for the Science Challenge was to find ways to enhance the productivity and production of the primary sector while maintaining our land and water resource quality. Although NZ sells about $37 billion worth of primary produce overseas consumers pay nearly $250 billion for it. The question was how to capture some of that value and pass it back to primary producers as a reward for “doing the right thing”.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Somewhat surprisingly market research found that it was consumers in developing countries who Professor Richard McDowell: were often more likely to be prepared to pay more for goods produced to ethical standards. In the United Kingdom, for instance, consumers were less willing to pay more for goods produced with higher ethical standards in areas such as animal welfare and food safety than consumers in China and India. Consumers in the UK were more likely to believe those factors should intrinsically be part of the food production process. Even if consumers were willing to pay producers could be missing out on those returns if products weren’t marketed correctly. Grass-fed beef for instance could earn a premium over beef marketed as from NZ – even though it, too, was grass-fed. “The nub of the problem is if we can target our markets successfully, we can emphasise where we have these attributes but how then do we get that (premium reward) back down to producers. “We have a couple (of companies doing so) at the moment but a couple is not enough.”

BUSINESS BUTCHERY

Shawn and Nells Nicholas.

Diversifying with prime cuts Shawn and Nells Nicholas wanted to recreate the nostalgic experience of having a relationship with your local butcher. The contract milkers have dusted themselves off after a difficult couple of years and have diversified their business portfolio by opening their own butchery in Te Awamutu. Sheryl Brown reports. Photos: Emma McCarthy. alking into Expleo Butchery you’re immediately enveloped into a family atmosphere. Shawn and Nells are working behind the counter, alongside Shawn’s mother Christine, and their two teenage children Will, 17, and Missy, 16. There are several customers chatting away to the Nicholas family members as well as their fulltime butcher Lewis Johnson while ordering their meat for the week, which is being wrapped in brown paper, or placed into the customers’ own containers. The shelves are stocked with a selection of free-range and some organic premium cuts, from their specialised aged-dried meat, to Wagyu for $150/kg, to Shawn’s delicious homemade black pudding, and Christine’s famous duck and orange pate. Shawn and Nells opened the butchery in March this year as a side venture to their 920-cow contract milking position. Their vision for the butchery was to offer a traditional service, where the focus

is on great food and a great customer experience. “It’s harking back to the traditional butchery where you could buy one or two sausages, not bulk buying, get the cut of meat you want, and you get to know the butcher,” Shawn says. “And you can buy Wagyu in little old Te Awamutu.” Shawn grew up on his parents’ dairy farm in Taranaki. One of his grandfathers was a dairy farmer and the other grandfather worked in the meat industry. Shawn has always held a passion for both industries and has worked in various roles in both sectors throughout the years. He was working as a supervisor at Riverlands freezing works in the Manawatu when he first met Nells, 18 years ago. Soon afterward, the couple made the move back to Taranaki to lease the family dairy farm and milk 180 cows. Nells, whose parents were market gardeners in Bulls, didn’t know what she was in for going dairy farming.

The couple also had an agricultural contracting business on the side so along with starting a family, they had their hands full. They’ve always had plenty on their plate and put in the hours to try and get ahead, Shawn says. They progressed to a lower ordershare milking position with 415 cows, then travelled down to Balclutha for a lower-order job milking 700 cows. They were then approached by their former farm consultant to go into an equity partnership. The couple had a 6% share and were lower order sharemilking the 680 cows. Unfortunately, some discrepancies in the arrangement led to the couple being burnt on their investment. “We came out with only the shirts on our backs and had to start from scratch,” Shawn says. They moved north to their current position, contract milking 920 cows just outside Te Awamutu and started again. They have stayed in that role for the last

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

KEY FACTS • Contract milkers: Shawn and Nells Nicholas

Shawn Nicholas in the Expleo butchery in Te Awamutu.

• Farm owners: McGovern family • Location: Wharepapa South, Waikato • Area: 285ha effective • Cows: 920 crossbreds • Production: 310,000kg milksolids • System: DairyNZ System 3 • Farm dairy: 60-bail Waikato rotary, Afifarm milk metres, auto drafting, ACR seven seasons. They opened the butchery at Te Awamutu in March this year, which has been something Shawn has wanted to do for the last few years. Shawn had the idea of opening the butchery and knew there was nothing in Te Awamutu that was offering that oldschool customer service. “I’ve always had a passion for the meat industry and food. I like good food and eating well. I had noticed the growth in the town and there wasn’t anyone offering that service.” The couple took a risk earlier this year to invest almost $200,000. “We’ve rolled our sleeves up and have had true determination. You’ve got to have a go, part of the risk,” he says. “This is a whole new industry, it was really scary (for me), but I’m less of a risk taker than Shawn. This is Shawn’s goal and I back him 100%,” said Nells. The concept has landed on its feet, and their customer base is growing steadily. Their clientele is growing through wordof-mouth and some social media with customers coming from Cambridge and Hamilton. “I know it’s going to work, it’s going to take time,” Shawn says. “It’s certainly being welcomed, we have hit the nail on the head, places like this are popping up everywhere,” he says. “I think people’s mindset in a really short time has changed when it comes to eating and eating well. “There has been a definite swing, people are looking for a more natural product, they want to know what’s going into their meat and food.” Expleo (pronounced explay-oh) is the Latin for fulfilment. Their aim is to offer that fulfilling experience through great produce and excellent customer service. “People like a certain size or specific cut of meat. That’s what we can create. That’s

Shawn and Nells Nicholas.

part of the experience of coming in.” They offer dry aged meat, which is a traditional meat preparation, additionally they have the deli section with pate etc, which compliments what they do. They stock beef, lamb, pork, venison, chicken, duck, goat, hopefully rabbit soon. The try to keep as local as they can with suppliers. The tongues, tails, cheeks, livers and kidneys are all sold in-store and there has been a request for tripe which Shawn is looking into offering. There is close to zero wastage – with bones used to make broth to sell to customers and suitable left-over bones sold as dog food. “We run a pretty tight ship.” They also sell free range eggs and some dairy products including various cheese, and Lewis makes and sells garlic butter. They will shortly start selling spray-free vegetables and Shawn is investigating selling milk in glass bottles. Their butcher Lewis Johnson has 20 years’ experience in the industry, previously working for supermarkets. He has enjoyed the shift to a familyowned business where he can spend the time on the floor talking to customers. A big part of their role is education, and bridging the gap between the farmer and

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

the customer, Shawn says. They can share their knowledge of farming systems through to advice on how to prepare and cook a cut of meat. As the proprietors Shawn and Nells think it’s important for them to be the face of the business and have customer contact, alongside their butcher Lewis. Shawn loves the customer interaction and being at the coal face. It’s great to get off farm and have that socialisation, he says. “Shawn is a natural. Customer service has to be first – you’re in the wrong place if you can’t serve with a smile,” Nells says. The pair view their customers and their staff, both in the butchery and on the farm as their extended family. “We are very giving. Our parents and whanau have influenced that. The culture is all about the whanau and giving where you can.” Working with people is definitely one of their skills and why they’ve had a good run with employing staff. “They are your number one asset, if you look after them, they look after you,” Nells says. “The kids have been great helping us out – they know what we are trying to do for them – they get it. William has been 33

here every night after school, he has been selfless.” If you can’t help your children into a farm or a business, a good work ethic is one of the best skills you can teach your children, Shawn says. “Our quality time is also them working alongside us. It’s given them a great work ethic,” he says. The future is still yet to be written for Shawn and Nells. At the moment, the farming and the butchery feel like a nice mix and it feels good to not have all their eggs in one basket and have more diversification. They are enjoying the social element of working in the butchery, but also relish going home at night to the beautiful and quiet countryside. The butchery is steadily growing, but it’s not self-supporting as a business yet. “We can’t envision being off the farm either. We have the best of both worlds.” Shawn, now 46, and Nells, 41, have been in the dairy farming game for a while, and they have started to reconsider what their end game is. “Sometimes I think we are failing,” Nells says. “We are still working seven days a week, and it’s always a struggle. We don’t take holidays, our time out is Saturday night relaxing with the family at home.”

From left, butcher Lewis Johnston, Missy, Shawn, Nells and Will Nicholas.

Dairy farming has certainly become difficult with increasing compliance costs and volatility, Shawn says. “Since we’ve been on this farm there has been two droughts, two low-payout years where we couldn’t control our costs. It’s really started to make me think it’s not happening for us.” The goal has always been land ownership and it still is, however the goal may no longer be their own dairy farm. A drystock block which they could use to rear animals and supply the butchery could be the better option. The couple have had a grief-stricken few years, losing three parents and Shawn’s 19-year-old son Kalam, who sadly took his life on Christmas Day in 2015. That tragedy is forever pushing Shawn and Nells to make a better life for their three children, William, Missy and Sarah-Kate, 9. “It’s made me determined to set something up for our kids, and it’s made me realise that there is life outside of farming,” Shawn says. When grief strikes it makes you have to change your plans, and adapt, but ultimately life carries on and the jobs pile up and you have to play catch up, Nells says. It has been a particularly tough year,

opening up the butchery in March, then became short-staffed through calving. Then Nells’ mother passed away in early November. “This year has been the ultimate juggling act. It’s been a struggle to keep our head above water, Nells says. “The cows still have to be fed, they still have to be milked. It’s a testament to our staff in both businesses. We couldn’t have done it without them. We couldn’t have got through without my mother-inlaw, she’s been great and cares about the business and our customers.” Christine came up from Taranaki to help in the shop when it opened in March, and has stayed on since then. Shawn has been working 14-16-hour days, spending the mornings onfarm and then the afternoons in the shop. The farm they are on is a pristine property with excellent infrastructure and they take a lot of pride in the farm. “It’s an idyllic farm that we are on and it’s a real privilege to be on that farm. We have maintained the standards,” Nells says. “We get a lot of compliments, we have tried to keep it beautified.” She has gardens at the farm dairy and the tanker track is always kept tidy and mowed. There is an extra cost involved and it takes time, but it comes down to taking pride in their job and keeping a high standard, she says. There was some push back from their farm owners when they first mentioned they wanted to open the butchery. But many contract milkers and share milkers have other farm businesses they are running or managing, Shawn says. This was no different. Farm ownership has become more difficult and the pathway there looks a lot different and people have to realise that. They want to grow both businesses, Shawn says. “You’ve got to keep planning and building, you can’t be idle.”

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Challenges or opportunities facing dairy? Taking a step back and looking at the big picture helps farmers deal with the challenges they face, Leo Pekar suggests.

APPINESSISNOWHERE! At first glance, how did you interpret the above? Did you see it as ‘happiness is nowhere!’ or ‘happiness is now here!’? Neither is right or wrong, but how you answered may depend partly on your mindset. As many of you know, this is heavily influenced by what stress we have going in our work or personal life. Although, our beliefs and genetics also play a part. There’s no denying dairy farmers have a lot on their plate at the moment, between meeting tightening environmental limits, consumer expectations and competition from animal protein alternatives. And that’s just to name a few. But it’s important to remember that with these challenges also come opportunities. As Resilient Farmer author Doug Avery says: “your attitude determines your altitude”. I couldn’t agree more. Although, I appreciate this is often easier said than done and it’s something I have to make a conscious effort with at times. I find taking a step back and looking at the big picture often puts things in

perspective. Suddenly a road block often becomes just a small hurdle, and criticism fades into background noise. Let’s take animal protein alternatives, for example. You could view this as a threat, or you could see this as an opportunity for the sector to add value.

It’s undeniable that consumer habits are changing, as people in cities are less connected with what it takes to grow food. And that is not going to change. The demand for milk alternatives and synthetic meats shows consumers are expecting more from food producers. They want to know that the food they eat is produced ethically, humanely and sustainably. I think that’s great and something that should drive us to constantly do better.

BUSINESS CO DIARY

It’s undeniable that consumer habits are changing, as people in cities are less connected with what it takes to grow food. And that is not going to change. This change is reflected by farmers who have hosted overseas farmers and consumers, or food company audits – most host farmers must meet certification requirements around workplace practices, labour conditions, animal welfare records and environmental footprint. This certification is a great opportunity for farmers to add value to their business but also to strive every day onfarm by making small changes to the way you do things, whether it’s protecting waterways or focusing on taking the best care of your staff and cows. There’s no denying it’s a challenging time to be a dairy farmer, but I believe it’s also an exciting one. There is an opportunity for this generation to make history in revolutionising the way we farm. I think that’s something for us all to be proud of and hopefully in 20, 30 or even 40 years time, to be able to say I was a part of that change. That’s something that keeps me going when times are tough, knowing we’re making a difference. All we can do is take it one day at a time. Leo Pekar is a DairyNZ consulting officer in Invercargill

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BUSINESS PAMU

New model for dairy? Words by: Jackie Harrigan espite the scary outlook for climate change Steve Carden’s research has thrown up, he thinks food production and the farming industry is going to be markedly different and a lot more exciting in the future. The Pamu chief executive addressed the Guild of Agricultural Journalists annual gathering and 60th anniversary of the guild with the words “the best years of farming in New Zealand are before us”. Eight hundred employees of the 130-year-old government-owned farming company work the 125 farms of 400,000 hectares. While Carden admits in the next 50 years farming will be different, the adjustment to get us there will be hard but food production 10-15 years from now will be a fantastic experience in an industry that will be much more fun to work in. “I am always in awe of what our farm staff and farmers in general cope with on a daily basis – their resilience, flexibility of thinking and skills – and I think society’s respect for farmers will change over time – from the legacy romantic view of farmers to the view of a highly sophisticated professional who is running and understanding complex science, complex systems, genetics, weather and producing a high value food product.” Recognising the growth in the agricultural and particularly the dairy sectors, he said productivity gains have been outstanding, alongside huge increases in land values, creating massive wealth in the farming sector, but he questioned if this could continue.

Stephen Carden, Pamu chief executive.

The flipside to the big economic story is not all good news, he says. The growth has been “achieved with a model that is not sustainable”. Intensification over the past 10-15 years has been achieved through what he called phoning 0800 Farming – supplementing grass growth with companies bringing in nitrogen, other fertilisers and cheap inputs. “There is nothing wrong with that if you are able to control the side effects – trouble is we haven’t been able to control them.” A misapplication of nutrients has meant the excesses in farming systems have moved to being an excess in our ecosystems – causing environmental issues across the country. The speed with which we need to move to fix the problems will have a big impact on the amount of pain we face into the next decade to change our farm models and get these problems under control, Carden says. “As we moved into more intensive land use we created a lot of economic value but it has come at a high social cost and is

not really a sustainable model that we are running as a farming nation.” Carden says the industry has not been good at showcasing what farming is about and that has affected its social licence. People problems, health and safety and mental health issues and the low staff retention rates are a side effect of a system that isn’t working, or has reached its peak. “At Pamu we talk about stressing the assets too much – the environmental capital in which we farm, stressing the people and the animals out too much – and people’s acceptance and tolerance of the conditions in which animals now are part of a farming system is changing – what might ‘ve been acceptable five years ago is now just not going to wash. “Challenges in our business – winter cropping issues and cows on mud are front of mind because the consumers’ willingness to tolerate this – let alone the tolerance of members of the general public, is quickly falling apart.”

BLUEPRINT FOR CHANGE So how have Pamu decided to change their business? “We need to shift from the old model of producing food to a new model – it’s really easy to write these down, and it’s really hard to do – we haven’t decided how to do it in its totality, but we know where we have to go.” Carden says they are moving from being production-driven in the 20th century to ecologically and ethically driven in the 21st century. Pamu has been guilty of expanding into unsuitable areas, and now is looking at changes. “We need to paint a picture for us and our farm staff as to why we need to shift.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

20th Century Landcorp vs. 21st Century Pamu Production Driven agriculture

Ecologically/ethically driven agriculture

• Growth focused • Resource inefficient • Animal welfare scrutiny • High water use • Intensification • Monocultural (N dependency, ryegrass) • Nitrogen dependent • Expansion into vulnerable areas (Mackenzie, Canterbury gravels) • Wrong land use - wrong place • Wrong animal - wrong place • High output, low value • Reduced productivity due to higher inputs • Diminishing profitability

• Value people, less stress, more diversity • Provide for animal wellbeing • Protect, enhance water quality • Reduce water use • Lower GHG • Sequester carbon • Close nutrient cycles, reduce anthropogenic fertilisers • Diverse forages (legumes, optimising ruminal health) • Robust traceability: residue free • Protect enhance biodiversity: grow ecologocal services • Farm for biosecurity • Transition to renewables • Retire vulnerable land = Right land use / right type • Right animal = right place

“First we need to fix things for our that land, let us know. people – we have a big problem with churn “What does a future farm look like? We as they don’t stay because they don’t see a have had cows stretched across most of the great future or good health and safety. We farm on rotation through small milking are working on pay parity and diversity sheds – I suspect the future will look and new technologies. different. “We need to reduce hours – anyone who “We have to figure it out somehow, to works 110 hours in a fortnight are a health tell a compelling future vision – we will and safety issue.” have renewables, hydroponics, a greater The company is looking at robots, a focus on precision-based cropping in once-a-day milking and changing land uses different areas – it will be quite different to and working around environmental issues what we are doing today.” – water quality, wintering issues, animal On the product side, Carden says Pamu welfare, removing is working on value-add nitrogen fertilisers and products – organic and upping legumes. single-source products ‘I am always in awe Reforestation into Asia, the milking of what our farm and innovations sheep products are staff and farmers in in land use have going well, high-value general cope with on major ramifications deer milk products are a daily basis – their for changes for selling into top Sydney, resilience, flexibility farm staff and rural Melbourne and NZ communities. restaurants. of thinking and skills.’ “Our responsibility “Functional foods are as farm leaders is a great space for NZ to to come up with get into – I get really alternative farm systems that deliver better excited about not so much trying to feed experiences and value propositions for lots of people but helping increase their young people who are debating staying in health outcomes through food.” the sector.” Hybrid systems including sheep, deer SCARY CLIMATE CHANGE and cow milking, integrating horticultural Climate change is coming and Carden options and diverse crops and land uses. has scared himself, diving deep into latest “What is cool for the farm staff is to research to upskill himself about the rename them as land managers – take off magnitude of those changes. the blinkers, they have an opportunity to “I hadn’t realised how bad it is.” do whatever they like on that land as long It is conceivable that some time soon we as it’s producing food or fibre – come to us will lose the Arctic ice shelf, he says, and with your ideas – it doesn’t have to milk that is a problem because it’s starting to cows or run deer – if there is something really mess with our weather systems. better you think we should be doing with Big variations in cold and warm air Dairy Exporter | www.nzfarmlife.co.nz | December 2018

movements is bringing cold air to the south – with more severe winters – and forcing warm air to move further north – thus warming the Arctic and speeding up the arctic melt. “We are moving into a state where we won’t have the stability of climate we have enjoyed to maximise food production – floods, droughts and instability will be the norm – placing severe crop yield pressures on many parts of the world.” Warming oceans will also play havoc with fishing stocks. While it all sounds depressing, Carden sticks by his suggestion of the future being exciting – but says it will be different. We have to become more urgent about what we are doing about climate change, he says, we need to get serious over the next 10 years about changing the trajectory. “I get frustrated when I hear people saying by 2050 or 2060 we need to do this and that – the battle will be lost by then.” He references a quote by oceanographer Sylvia Earle, “The decisions we make in the next 10 years will determine the direction of the next 10,000 years.” But he is heartened by the speed of dramatic change in other countries, including California regulating to reduce methane output from their dairy farms by 40% by 2030, India banning the sale of plastic bags punishable by a jail term and in Denmark, no new petrol/diesel cars by 2030 and no new hybrids sold by 2035. “Climate will become a much bigger topic of conversation, and I think we will start to see consumers change what they do and how they eat in response as they wake up to what they can do to help arrest some of these problems.”

DAIRY NZ GREEN HOUSE GAS

Greenhouse gas challenge for dairy Agriculture has an important role to play in meeting the Government’s target of a low-emission economy, David Burger of DairyNZ writes.

educing biological emissions really is one of the greatest challenges the agricultural sector has come up against, and this is particularly the case for New Zealand. We are a global outlier in that about half our emissions come from agriculture, and 22.5% from the dairy sector. That means agriculture has an important role to play to meet the Government’s ambitious plan for New Zealand to become a low-emissions economy. Next year, once the Zero Carbon Bill is set into legislation, all farmers will be accountable for their methane and nitrous oxide emissions in some way. All agricultural groups are grappling with the various scientific modelling and recommendations about how much methane should and could be reduced by to limit global warming. It is an enormously political decision, and not just for the Government. Numerous reports this year all agree there are very limited options right now for farmers to reduce their biological emissions (methane and nitrous oxide). To help us better understand the science, the agricultural sector jointly commissioned research to provide clear signals of where farmers could focus their efforts to reduce emissions. This research found that 2-10% of biological emissions reduction is possible 38

with current mitigations. However, there are caveats. For instance, achieving the higher reduction level would require all farmers to implement a range (or ‘package’) of mitigations on their farm at once, rather than a single mitigation and assumes they have the required high degree of knowledge and skills to do so. Agricultural emissions per hectare are strongly linked to the intensity of the farm system. For instance – methane emissions are higher than average on farms with higher stocking rates and higher drymatter consumption per hectare. Three of the options to reduce methane are lowering replacement rates, reducing the drymatter feed per cow, and lowering stocking rates as individual performance of each cow improves (while maintaining the same level of feed per cow). We have more options to reduce nitrous oxide, which involves minimising nitrogen input through better fertiliser application, use of low nitrogen feeds and improving pasture quality. These primarily involve farm management changes rather than infrastructure investment. However, a key challenge to a large number of farmers adopting these mitigations is ensuring all farmers understand what their individual situation is and where the opportunities exist for changes. Each farm will have a different starting

point and different options they can implement. This is due to regional differences such as climatic conditions and soil type, as well as financial and other barriers. Furthermore, the implications for profitability for each mitigation varies widely. However even these small changes can add up to a combined and collaborative effort by the dairy sector to proactively reduce greenhouse gas emissions. Collaboration will grow in importance as we head into 2019. We will be collaborating not just among the wider agricultural sector but with Government and Opposition parties, stakeholders, and scientists as our understanding of methane develops and the Zero Carbon Bill progresses through Parliament. While at time of writing, we don’t yet know the 2050 target that will form part of the Zero Carbon Bill, we can assume all gases and all sectors will need to take action. The action we are taking right now is to help farmers build their knowledge and understanding of greenhouse gas emissions, review the mitigation options to help them reduce biological emissions, and investing in new technologies to achieve the magnitude of reductions required long term. These actions, along with the developing science and technology, should set us on a path towards a low-emissions agriculture. The Zero Carbon Bill presents NZ with an opportunity to show the world it is possible to produce milk in an emissionsconscious way. The actions and technologies we develop over the coming years will help us meet our climate change goals, and will become valuable exportable knowledge and tools that we can share with other agricultural nations around the world. As well as safeguarding our sector and economy, and NZ’s reputation, we have an opportunity to pave the way for other agricultural nations as their carbon dioxide emissions decrease and they begin to focus on biological emissions. DairyNZ is strongly advocating for a fair and stable transition for the agricultural sector. We are also committed to working alongside all of our farmers to support them as they look at what changes they can make to improve the sustainability of their business and the environment. David Burger is DairyNZ Strategy Investment Leader

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

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Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Simpler system delivers results

SYSTEMS GRASSLANDS ASSOCIATION

The New Zealand Grassland Association’s annual conference always sees some of the latest dairy pasture science aired, and this year’s event in Twizel was no exception. Andrew Swallow relays some of the more practical messages. dopting simpler nitrogen budgeting systems than Overseer could see dairy farm environmental footprints fall faster and lift profits at the same time, delegates at the New Zealand Grassland Association conference in Twizel heard. Presenting findings from five Canterbury dairy farms participating in the Forages for Reduced Nitrate Leaching (FRNL) programme*, DairyNZ’s Ina Pinxterhuis said the reduction in nitrate loss achieved by the farms adopting new practices was substantial. “For some farmers, from where they were before the programme to where they are now, it is more than a 20% reduction in Overseer’s nitrogen leaching,” she said.

There was “no silver bullet” to reducing nitrogen losses and improving nitrogen use efficiency. Farmers would need to work out what would suit their farm environment and system. What’s more, by focusing more on nitrogen conversion efficiency, farms “can actually increase profit,” she added, presenting data that showed, using a standard $6 payout for milk, all five farms had done that. For one already highly profitable farm the gain was just 3% but the others were able to increase profit by at least 20%. 40

Dr Ina Pinxterhuis: By focusing more on nitrogen conversion efficiency, farms “can actually increase profit”.

While Overseer remained an essential tool to model nutrient losses, for farmers, using a much simpler nitrogen surplus calculation would help them sooner see if new practices adopted were delivering gains in nitrogen conversion efficiency and reducing risk of N loss to the environment. The problem with Overseer was that it took considerable time for the programme to be updated so that N-loss mitigation practices, such as plantain, low N feeds, or use of catch crops, were reflected in the nitrogen loss figures it generated, Pinxterhuis explained. Also, Overseer’s estimates of nitrogen loss were not suitable to compare nitrogen management of different farm systems and practices due to effects of soil type, climate, and the

model’s assumptions. In contrast, a simple N-surplus approach, deducting nitrogen off-take in sales from nitrogen imported as fertiliser and feed, could be used to compare farm systems and was more likely to increase awareness of possible environmental effects of practice changes, hence lead to their adoption and retention in the system, Pinxterhuis suggested. “It may show the effect of new mitigation options before Overseer has been able to incorporate (them),” the paper, available on https://www. nzgajournal.org.nz, states. Analysis of N-surplus calculations in the programme showed a strong correlation between the surplus figures and Overseercalculated N-loss to water.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Pinxterhuis stressed there was “no silver bullet” to reducing nitrogen losses and improving nitrogen use efficiency. Farmers would need to work out what would suit their farm environment and system. For example, in FRNL there were big differences in results from farms on heavier soils with moderate rainfall, to those from a light-soil farm with high rainfall. Even within the Canterbury dairy data set, there was a marked difference in N-loss and N-surplus figures between two farms on extremely light, free-draining soil (Plant Available Water to 60cm (PAW) of 50-80mm) and three on light soils with PAW of 80-110mm. The location of the five farms and further information on the Forages for Reduced Nitrate Leaching programme is at www.dairynz.co.nz/frnl *Forages for Reduced Nitrate Leaching is a six-year research partnership between Dairy NZ, AgResearch, Plant & Food Research, Lincoln University, Foundation for Arable Research and Landcare Research, principally funded by the Ministry of Business Innovation and Employment.

Pierre Beukes: ‘The oats work really well if you get them in in April.’

Beef block beats dairy conversion erhaps one of the more surprising conclusions of papers presented at the Grassland Association’s conference in Twizel was that dairy conversion of a support block may not only be less environmentally friendly, but less profitable than tweaking the status quo. Modelling three scenarios for a North Canterbury farming business in the Forages for Reduced Nitrate Leaching (FRNL) programme, Dairy NZ’s Pierre Beukes found modest reductions in

KEY POINTS • Simple N-Surplus approach • N-surplus = Purchased N inputs (fertiliser + feed) – N outputs (production). • Can be done without Overseer. • Reflects mitigation effects sooner. • Comparison between farms valid. • Not subject to model updates.

MODELS COMPARED Measure % pasture plantain-based Cows wintered

Status Quo*

FRNL-1*

FRNL-2*

FRNL-3

(support converted)

1240

1680 (1050/530)

N on milk platform

290kg/ha

220kg/ha

280kg/ha

N on 210ha support block

177kg/ha

150kg/ha

280kg/ha

N on 255ha beef block

200kg/ha

130kg/ha

Fodder beet

69ha

83ha

32ha

Kale

30ha

56ha

Rape

12ha

17ha

Maize

8ha

20ha

30ha

8ha

9ha

Oats after beet N-loss** kg/ha Operating profit** $/ha

40 (31)

39 (30)

37 (25)

48 (42)

$2462 ($2268)

$2412 ($2466)

$2485 ($2450)

$2484 ($2368)

*310ha milking platform, 210ha support block, 255ha beef farm: not adjoining but within 20km. ** Main figure as predicted by Farmax & Overseer. Figure in brackets modelled with Dairy NZ Whole Farm Model and APSIM.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

nitrate losses and increases in profit could be made by adapting systems to include recognised N-loss mitigation measures. However, that was not the case when a 210ha support block was converted to dairy and a beef block (255ha) became the support block for the enlarged dairy business (see table). Beukes acknowledged the modelled returns didn’t include capital gain but noted volatility of income was also increased in the conversion scenario compared to keeping the beef enterprise and support block. The FRNL farmer whose business supplied the data for the modelling thought he might be able to make more money by converting the support block, with capital gains on top. Developing a succession strategy was another reason to look at the conversion. All three scenarios modelled used more plantain-mix pastures, less nitrogen, and a catch crop of oats after early harvested fodder beet. “The oats work really well if you get them in in April,” said Beukes. Plantain-mix pastures might have reduced nitrogen loss further but for the model predicting that on the North Canterbury farms they would yield 16 tonnes drymatter (DM)/ha compared to 15tDM/ha from ryegrass-clover, offsetting the 20% versus 23% respective crude protein (ie nitrogen) content.

Forage index to include ME and persistence etabolisable energy (ME) and persistence data could be included in perennial grass cultivar rankings in the Forage Value Index as soon as February, delegates at the New Zealand Grassland Association conference in Twizel were told. The cultivar league table was currently based on seasonal drymatter yields, converted into a $/ha value, but sufficient data was already available to adjust that to allow for differences in ME, Dairy NZ’s Forage Value Index manager, Cameron Ludemann, said. However, there could be persistence issues with tetraploids, he noted, hence ME would not be included into the index until persistence could also be accounted for. Including ME alone would see the values of late heading diploids and, in particular, tetraploids leap by hundreds of $/ha (see table). Adding persistence to the calculation could require the current standard of three years’ yield data to be extended to six years, a comparison of years 1-3 and 4-6 providing a measure of persistence. Such a lengthening of trial period risked slowing rate of genetic development so proxies for persistence which could be measured sooner have been developed. “The new ME and persistence trait results will be based on data from trials that complement the standard threeyear seasonal dry matter yield trial data,” Ludemann told Dairy Exporter. Inclusion of ME and persistence in index values from February would be subject to FVI Steering Committee approval, he added.

FORAGE VALUE CHANGES BY GROUP Region

Upper North Island

Upper South Island

Group

Current FVI – DM only ($/ha)

FVI inc DM & ME ($/ha)

Medium heading date diploid

260

Late-heading diploid

374

450

Tetraploid

218

604

Medium heading date diploid

188

Late-heading diploid

249

420

Tetraploid

196

745

As presented by Dairy NZ’s Cameron Ludemann, NZGA conference, Twizel, Nov 2018.

Oats and ryecorn had tended to be the go-to crops for late sowing in cold climates.

Triticale as N catch crop? ats and ryecorn had tended to be the go-to crops for late sowing in cold climates but a triticale selected specifically for its winter activity was proving its worth, delegates at the NZGA conference in Twizels were told. Presenting data on the triticale cultivar T100, bred by Grasslanz and Plant & Food Research and marketed by Cates Grain & Seed as WinterMax, Grasslanz’ John Caradus suggested the cultivar could be an alternative catch crop to mop up TABLE 3 nitrogen after grazed fodder crops. Crop (all sown DM yield (kg/ha) May 6th) Trials from White Rock, North Sep 16 Oct 2 Oct 21 Canterbury, sown T100 Triticale 1732 3847 7556 May 23 or July 1 in Double-Take 1403 3336 5850 2014 showed despite Triticale lower nitrogen Milton oats 1403 3221 6250 concentration in Hogan annual tissue compared to 1025 2796 3838 ryegrass Rahu rye come spring, Torch wheat 854 1938 3415 T100 took up more Least nitrogen in total significant 321 788 1717 thanks to significantly difference higher yields. Plots Source: adapted from Journal of New Zealand from Chertsey, Mid Grasslands, Vol 80. Canterbury, sown May 6, 2015 showed similar yield advantages over Hogan annual ryegrass and Torch wheat (see table) but the yield margin over oats and another triticale were not significant. “The T100 was obviously coming out of the ground a lot more quickly than the other options in the trial,” noted Caradus. Meanwhile Brendan Malcolm, of Plant & Food Research, presented a summary paper on catch cropping to cut nitrate loss. Besides the catch crop mopping up nitrate that could otherwise be leached, particularly following grazing of fodder crops, nitrate loss is reduced because the catch crop removes water from the soil, reducing the risk of drainage events leaching the nitrate.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

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BUSINESS ESS DAIRY BUSIN R OF THE YEA

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“The DBOY competition has been an opportunity for their staff to be involved and boost their own career development.”

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UK. n OE to the g for her ow nada, for a before leavin 7 NZ Whistler, Ca ts in the 201 n moved to hard. alis the Ric t fin She me ng she by bei have liday, where evidenced ere r (DBOY), working ho lbourne wh ss of the Yea ing moved to Me Dairy Busine ile maintain A while The couple do this wh ards an MB been able to studied tow h level. . d hig tor har a sec at Ric energy mance they rked in the farm perfor n a cow until Davina wo n’t milked ional and the grew up Richard had k on operat consumer in 2007. He Richard too ry farming roles in the e exposure took up dai in management som l h ng era rki wit , gen wo thland years ily, . After five in urban Sou through fam goods sector , and with beef farming studied e and Sydney to sheep and decided outdoors. He h Melbourn y bot the the , of e tow lov re) at children in and had a closer to e (Agricultu two young me and be of Commerc duate to move ho a Bachelor landed a gra it was time iversity and great Lincoln Un gave him a rk on ily. ich wo fam to wh , up ZA pear ity came role with EN vina’s apple and An opportun view of the Te Aroha. Da ily farm at l introductory ell, were stil Davina’s fam NZ. and Bev Sch d industry in s, Gordon ling aroun m the vel ent the tra par ded nt spe farm, but han ed to work After time . the urn ers ret on nag he ive act farm ma Canada, sales to step in as America and but taking on a opportunity ed before, NZ before in er dairy farm g for ENZA in them based “I had nev relief milkin ting role for e the usual don and marke had a Richard Davin a. ry wing up,” eric dai gro Am ily ves rth fam cal g No her and feedin grew up on o wh at a, ting Davin died accoun says. Aroha, stu KPMG farm in Te worked for 8 iversity and vember 201 Massey Un o.nz | No w.nzfarmlife.c orter | ww Dairy Exp

“We have an approach around key activity where we like to plan and then after the fact, do a review. That way we are keeping the knowledge for what works updated and current.”

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Dairy Exporter | www.nzfarmlife.co.nz | December 2018

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Dairy Exporter | www.nzfarmlife.co.nz | December 2018

SYSTEMS R&D

Seeds for the future Morrow Red clover.

Using both old and new technology, plant breeders are focusing on better nutrient use efficiency, improved climatic tolerance, higher nutritional value, stronger pest resistance, and a step change in genetic gain.

t’s 2006/07. The payout is up, but at $4.46/kg milksolids it’s still not flash. There are 3.9 million cows in New Zealand; the average price of dairy land is just over $25,000/ha. A new report from Lincoln University has debunked the European food miles campaign against NZ dairy imports. Three DCD nitrification inhibitors are on the market; scientists say they’re an exciting new farm tool that can reduce nitrogen losses by 60-70%. One in three dairy farmers is using a nutrient budget. Palm kernel imports are up 45% on the previous year, but only total about 360,000 tonnes. Plantain is still a weed. A lot has changed in 12 years. But what about the next 12 years? No-one knows exactly what the NZ dairy farm of 2030 will look like. A team of plant breeders and researchers in Canterbury, however, is working to reinvent pastures and forages to help

farms of the future operate sustainably and profitably. Using both old and new technology, and drawing on the latest global advances by science partners here and overseas, they are focused on several innovations: better nutrient use efficiency, improved climatic tolerance, higher nutritional value, stronger pest resistance, and a step change in genetic gain. They also want to cut the time taken to get improved new cultivars to farmers, using more efficient breeding processes. Instead of 12 years, for example, which is how long it takes to breed, test and commercialise a new perennial ryegrass, soon it might only take six to eight years. In the ground now are deep-rooted experimental hybrid clovers bred for better drought tolerance, and the first perennial ryegrasses created using a type of F1 hybrid breeding similar to that which first catapulted maize yields skywards in the 1950s. These and other developments –

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

including newly discovered novel endophytes – are part of Barenbrug Agriseeds’ focus on the future needs of NZ dairy farmers as regulatory, social and environmental scrutiny intensifies. This research is collaborative. It involves joint private, public and industry good science programmes like PG+ (formerly Pastoral Genomics) in NZ, and DairyBio in Australia. It’s a long game. Some of the work is either at or just past proof of concept stage, with earliest commercial outcomes not expected until the early 2020s. Common to all the different projects, however, is the underlying belief that despite pressures currently facing dairying, real milk from NZ cows has a real future. In which case, the cows of 2030 will still need grass, clover and other plant species to eat, no matter how they are farmed. “Animals have been grazing pasture for millenia – it’s very natural, and pasture-based farming has a strong 45

future,” Barenbrug Agriseeds marketing manager Graham Kerr says. “How we go about pastoral farming is already evolving, because of the changes facing our industry, in terms of climate change, social licence to farm, food safety and environmental sustainability.” Part of this evolution will come through science and new cultivars; part of it through new farm systems, he says. “The more we can make pasture do, the more options farmers will have in the future,” Barenbrug Agriseeds science manager Colin Eady says. “That’s our job – to carry on making the most efficient, sustainable grasses and pastures that we can.”

Sensor technology Parts of that job could soon become easier and faster, thanks to recent advances in sensor technology, and DNA-based plant selection. Non-destructive, automated tools could significantly streamline current field trial procedures, which are manual, labourintensive and account for as much as half the time required to develop new forages. This season, for example, Barenbrug Agriseeds is field testing prototype LiDAR scanning equipment developed by AgResearch as part of the PG+ programme. The LiDAR machine estimates plant drymatter yields without hundreds of leaf samples having to be hand cut, dried and weighed. This new technology will be compared to traditional manual sampling for 12 months to validate its accuracy through different seasons. More recently, solar-powered, polemounted sensors developed by Farmote Systems have been deployed at the Barenbrug Agriseeds research station to test

their potential for recording daily plant growth rates, automatically transmitting that data to cellphone app or desktop computer. Research on other technology that might make commercial plant breeding more efficient is also being closely followed at DairyBio’s pasture research site in Australia. This includes non-destructive, hand-held NIR devices that give immediate in-field quality results, potentially replacing leaf sampling procedures currently used to measure pasture ME. Meantime, in its own breeding programme, Barenbrug Agriseeds is also evaluating genomic selection tools like those that have already improved livestock breeding in NZ. Plant breeder Courtney Inch says potential gains here are two-fold. First, by using genomics for more efficient plant selection, it’s hoped to accelerate the current rate of genetic gain in ryegrass DM yield, from about 0.8% a year to 2%.

Prototype LiDAR machine in use.

Breeder Courtney Inch.

Second, increased confidence and accuracy provided by genomics could speed the cross-breeding and selection process currently required to achieve improved plant performance.

Captain CSP Plantain.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Barenbrug Agriseeds science manager Colin Eady.

This would allow breeders to screen promising new plants at seedling stage, without having to wait for them to grow out, so that multiple generations of new crosses could be created in a single year, rather than the status quo which is typically one generation per year. That in turn would shorten the existing timeframe from first cross to commercial seed, perhaps by up to half. Like the automated LiDAR DM yield scanner, Barenbrug Agriseeds is currently validating genomic selection in large-scale commercial plant breeding, Courtney says. “We’re only in the early stages with this technology. But it is the future of plant breeding. In five years’ time, the next variety we release might be one that has been created through this process.”

Commercial-scale genomic plant selection is a leading objective for both the PG+ and DairyBio research programmes. For years, though, another plant improvement technique with major yield advantages has eluded commercial ryegrass breeders. F1 hybrid breeding captures the benefits of hybrid vigour, or heterosis, to improve plant yield and uniformity in first generation offspring. This process was proved to transform maize yields over 100 years ago, and once it became commercially viable, drove exponential gains in maize crop performance.

As well as maize, it is now commonly applied to rice, sorghum and many other crops. Courtney Inch says scientists have been looking for a way to breed F1 hybrid diploid ryegrass for decades, because it offers potential DM yield gains of 20% or more. No commercial F1 hybrid diploids are

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Phil Shepherd’s cows grazing at Reporoa.

yet available. But DairyBio in Australia has recently developed several experimental F1 lines. The first of these are now under evaluation in Australia, and at Barenbrug Agriseeds’ research sites in NZ. “We have one year’s worth of data on these, so it’s early days yet. Again we’re at proof of concept stage. If everything goes to plan, commercialisation should happen around the mid-2020s,” Courtney says. Exactly how farmers of the future might use F1 hybrid perennial ryegrass pastures with 20% more DM yield is an exciting challenge to consider. However, he says, many have already had a taste of the type of farm system change made possible by a double digit gain in pasture performance with one of Barenbrug Agriseeds’ existing cultivars. Shogun is not an F1 hybrid, but it is a hybrid cross between Italian and perennial ryegrass. It gave farmers a mix of yield, cool season growth, quality and persistence that effectively created a new type of pasture. Under-sown across whole farms, grown with clovers for two-three-year pasture, winter-grazed, milked off, harvested for cut and carry, made into supplement, used for drought recovery, flood damage and pugging repairs, it has found many uses in the six years since its release. A key feature in the move towards farming within nutrient limits is Shogun’s 48

ability to utilise soil nitrogen during the cooler months, because of its prolific winter growth. In 11 national forage variety trials, Shogun has recorded consistently high average production during three critical times of the season: winter, June 1 to July 31; early spring, August 1 to September 30 and late spring, October 1 to November 30. These rates exceed those of many Italian ryegrasses. The industry-funded Forages for Reduced Nitrate Leaching project has shown N leaching from cow urine patches under Italian ryegrass pastures is 25-35% less than other types of pastures due to Italians’ cool-season N uptake.

Latest developments Two new cultivars highlight the type of innovative performance and adaptability Barenbrug Agriseeds is targeting for future pasture options, marketing manager Graham Kerr says. Captain CSP (cool season plantain) and Morrow red clover both feature improved agronomic characteristics over existing standards. Captain has been bred specifically for high cool season growth, providing more kg drymatter (DM)/ha when feed is often at a premium, and utilising soil N in winter, the highest risk time for N leaching. As well, it is deep rooting with good yield and metabolisable energy through summer.

Morrow is a multi-stem red clover selected from a North Island ecotype for its ability to withstand shorter grazing rounds than traditional red clovers. On the endophyte front, Barenbrug Agriseeds continues to screen and test many potential new lines with its worldclass agricultural bioscience partner AgriBio in Australia.

Pumice and peat – pasture innovation onfarm It started on the Central Plateau. Now it’s moving into the Waikato. Dairy farmers with challenging soils and sometimes extreme seasonal weather patterns are combining two quite different perennial ryegrasses to achieve more resilient, longer lasting pastures. In doing so, they’ve shown how innovation in plant breeding can lead to innovation on farm. High-yielding Trojan and dense, spreading Rohan were both first in class ryegrasses when launched in 2011 and 2013. Sowing them together was another first: a four-hectare real-world experiment involving a farmer at Reporoa who needed pasture that would last longer than three years (but didn’t want fescue); a Farm Source TSR from Taupo who knew ryegrass persistence was a real issue for many of his clients, and an area manager from Barenbrug Agriseeds, who was able to

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

organise a Trojan/Rohan seed mix. Five years and many tonnes of seed later, the mix has been sown on dairy farms throughout the Central Plateau, having shown it can handle pumice soils, browntop reversion, dry summers and long, cold winters better than originally expected. Farmers are now using it on peat in the Waikato and marine clay on the Hauraki Plains, situations where ryegrass persistence can be affected by high soil temperatures, waterlogging and moisture stress. These are also situations where having a pasture that lasts four years, instead of three, is a major win, not only in terms of maintaining productivity but also reducing the frequency with which paddocks have to be worked up for renewal. Phil Shepherd was among the first to sow Trojan/Rohan after Farm Source TSR Gav Brears talked him into it five years ago. Now that’s the only mix used for 30-45 hectares of annual pasture renewal on the farm Phil manages north of Taupo. Sitting 670m above sea level, it comprises 340ha of pumice and was converted from forestry 11 years ago. It milks 700 cows, all of which are wintered on. Grass growth typically stops as of June 1 and doesn’t start again until September. The lowest frost recorded is -12C. Some supplement is fed through the dairy (palm kernel, DDG and tapioca); turnips are grown for summer feed; and swedes, kale and straw are used for wintering. But grass is the number one feed source. Trojan and Rohan together provide a high-yielding, persistent pasture that is dense, palatable and always evenly grazed, Phil says. “We needed something that could handle extreme temperatures, particularly during winter. This is a very good summer farm. With our normal overnight heat showers, we can grow up to 80kg DM/ha/ day right through to autumn. But some of the other grasses we had were just getting killed by the cold.” He’s very particular about spraying for broadleaf weeds in early establishment, to get new pastures off to a clean start, and

also works to achieve consistent postgrazing residuals of 1500-1600kg DM/ha.

Hybrid clovers Next to ryegrass, white clover (Trifolium repens) is New Zealand’s most important pasture species. In itself, however, it is severely restricted in genetic diversity, limiting its ability to adapt to certain growing conditions, particularly low soil fertility and drought. The first hybrids between T. repens and related clover species found thriving in harsh environments elsewhere in the world were bred many years ago, aimed at creating plants which retained good forage yield and gained survival attributes. Using nonregulated gene technology, scientists working with PG+ have now refined those hybrid clover breeding techniques, which are being scaled up for adoption by commercial plant breeders in NZ. Of particular interest are hybrids formed by crossing elite lines of T. repens with T. uniflorum from the Mediterranean. This species is not as productive or stoloniferous as white clover, but it grows in dry, rocky places, with deep thick taproots and thickened, sturdy stems. The best T. repens x T. uniflorum hybrids have shown potential for better drought tolerance and improved phosphate use efficiency, which is very relevant given the regulatory trend towards limiting farm nutrient inputs and losses. Ironically, one of the biggest challenges in advancing this research has been finding suitable low P soils in which to test the new hybrids, says Ed Butler, partnership manager for PG+. As well as having new germ-plasm under commercially evaluation, PG+ researchers have just sown three new trials to compare the hybrids’ drought tolerance at a range of different sites.

‘Animals have been grazing pasture for millenia – it’s very natural, and pasture-based farming has a strong future.’

PG+ comprises AgResearch, Barenbrug Agriseeds, Beef+Lamb NZ, DairyNZ, Dairy Australia, DEEResearch, Grasslands Innovation, the Ministry of Business, Innovation and Employment (MBIE) and PGG Wrightson Seeds.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

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Failure to start treatment early enough, ideally as counts begin to rise (or just before) means that the scene is set for much more severe damage to occur than necessary. it’s all about starting early enough and ensuring all animals get the correct daily dose. Zinc oxide can be drenched, which in itself is physically demanding. This is not always an easy product to keep in solution and is not always compatible with other compounds of the drench mix. While daily drenching ensures all animals get zinc, usually all animals get the same amount daily regardless of size or need. As with water, this means that it is possible to see both zinc toxicity and facial eczema in the same mob at the same time. Zinc oxide can be added to feed and in many cases as feed intake is determined more by cow size and need, a more even protective level of zinc is achieved. Zinc oxide is a powder – it can be unpleasant to handle, especially in windy conditions, which means it needs careful mixing and can separate out.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

For conventional wagons and feed troughs, (eg; palm kernel troughs), some physical effort is required to get good distribution, which is not as easy as it seems with small amounts of powdered zinc oxide. Powders added to in-shed systems mean unpleasant dust in the feed which cows do not like. Powders in feed can settle out both before and during feeding, so not all ‘mouthfuls’ contain the same amount of zinc. These problems can all be overcome by producing the zinc oxide in a granule. As an added bonus, granules can be made up to contain calcium (reducing subclinical or clinical hypocalcaemia issues), salt (increasing palatability) and magnesium with all of the minerals mixed together in a predetermined correct ratio. Given a standard amount of zinc oxide per kilogram of granules, it is easy to calculate daily requirements. More signiﬁcantly granules are easier to mix, are more palatable, don’t settle out and can be used in all types of feed systems for all classes of stock. Granules can be premixed into feed prior to delivery or added on farm. Mineral Boost Zinc is ideal for this purpose. • This is an abridged version of Sue Macky’s article, for the full content or more information please call MineralBoost on 0800 466 736 or visit www.mineralboost.co.nz

Brother and sister Willem and Lisette know they need to be adaptable to be successful as the next generation in dairy farming in The Netherlands.

SYSTEMS STOCK

Efficient feeding Farmers in The Netherlands face new phosphate regulations, which have meant stock number cuts. Sheryl Brown reports.

n intensive indoor dairy operation in the Netherlands is working with CRV on a feed trial to monitor feed conversion

efficiency. It’s the first commercial farm to execute the feed efficiency trial, CRV Holstein global product manager, Joost Klein Herenbrink says. “We wanted to run this trial on a commercial dairy farm, doing normal behaviour as much as possible to show the variation in efficiency.” They are aiming to set up the same system across 10 farms in the next two years, he says. Purpose-built individual feed bins 52

measure how much need to be as efficient as supplement each possible in the future. KEY FACTS individual cow eats, Dairy farmers in • Owners: Ben & Hannie what time she eats, how The Netherlands are Alders long she spends eating restricted with the • Manager: Willem Alders and what bin she eats number of cows they • Area: 75ha out of. Each cow’s water can milk and have to • Cows: 200 intake is also measured. buy phosphate rights at Feed efficiency €10,000/cow if they want • Farm Dairy: 20-aside internal rotary is going to be an to increase their herd. important factor to Willem is managing his • Production: 32-38kg/day consider when selecting parents’ dairy farm. genetics in the future, When the new farm manager Willem Alders says. phosphate quota came in they reduced New phosphate allocations in The their herd numbers and their young Netherlands has put restrictions on local stock numbers to be able to meet the new dairy farmers and therefore every cow will regulations. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

“We were not happy, we lost a lot of money,” Willem says. “It hit us pretty hard, the phosphate quota.” In 2017 they were milking 250 cows and had 240 young stock onfarm. They are currently milking 200 cows and only have 90 young stock onfarm. They had to send a lot of animals to slaughter because the prices were not good for selling cows, he says. “To buy the phosphate rights – you need to work a long time to get to break-even point.” The Alders’ operation is an indoor system which is high-input and the cows don’t go outside to graze. They take five cuts of grass silage off their farm every year and grow 70% of their maize, buying in the other 30%. They spend about €15-17c/litre on feed, which includes their cropping costs. “We are quite intensive, 50% of our cost is feeding cows,” Willem says. They supply FrieslandCampina and the milk price is currently €35c/litre. The cows are fed based on milk production, with the top producers getting up to 6kg of pellets on top of their daily supplement. The Holstein Friesians weigh between 497kg and 890kg and produce from 35kg up to 44kg of milk/day. The information from the trial will show the cows who are earning the most money but turning feed into milk, Willem says. “We will see the difference between the cows earning €5/day after costs, and the top cows who earn €14/day after costs. That’s a major difference.” The most efficient cows could be fed more intensely and they could have fewer cows for the same production, which is better for the environment. Feed efficiency is just one of the traits they look at when making breeding decisions, however, Willem says.

Willem and Lisette Alders and CRV’s Joost Klein Herenbrink are trialing feed conversion efficiency onfarm.

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“We are not blindsided to just breeding for one thing. It’s not just about lactation, we look at the whole life period of an animal. It’s about good, healthy, productive cows, that are also efficient.” “You’ve got to take other traits into

consideration, feed is only one part of efficiency of a cow. It’s very important to look at everything, rather than focus on one thing.” They breed replacements from only the top 20% of their herd with sexed semen and inseminate the rest of the herd with Belgian Blue. “It’s a more efficient way of breeding. It’s more efficient to breed replacements from top animals.” The farm has been owned by the Alders family for more than 100 years, after Willem’s great grandparents purchased it in 1915. Willem has worked on the farm since he was 17. His sister Lisette is studying business and has recently finished a work exchange in New Zealand. She helps onfarm and does the business accounts. Willem knows their generation is

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going to have to be flexible and adapt to new regulations to make the farm survive. “Some farmers did exit the industry due to phosphate legislation, and now the price keeps going up maybe more will choose to get out (cash up). “I’m still positive about the future. It’s a transition period, there are those who want to grow and keep up with the extra rules and those who want to get out.” A lot of farmers have gone biological to cope with the new environmental regulations, but that is only going to allow them to keep farming for 10-15 years longer, it’s not a long-term solution, he says. Part of the solution may be getting a connection back with the consumers. “Us farmers have lost the connection with the people who buy our products. After the second World War everyone had family on a farm, now everyone is living in the city and we’ve lost that connection and the education in schools.” Politics in The Netherlands has also not had a strong farmers’ voice, he says. “It’s up to the companies to promote the industry. There is a Farmers Union

Willem Alders: feed efficiency will be important with the new phosphate restrictions in The Netherlands.

but not everyone is joined to that.” The Netherlands does not have a DairyNZ equivalent to champion or promote the industry. Until recently there was no agricultural minister in government. “A year ago there wasn’t even an agricultural minister, agriculture used to be part of economics. Now we have an Agri minister and the first thing she did was bring in the phosphate legislation.”

A big push to see cows outside grazing has been driven by a grazing premium, but it is not necessarily the best answer environmentally, he says. “Grazing has benefits but it also has disadvantages for the climate.” The solutions for the future need to start with a conversation and farmers need to tell their story better, he says. “We need to discuss everything with an open view.”

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Lush Lands of Tower Peak A Question of Control Securing Supplement Supply Weighing the Factors That Extra Effort

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Lush lands of Tower Peak Southland’s Takitimu mountains are home to a huge station raising young heifers for Canterbury equity partnerships. Anne Lee reports.

igh up against the soaring, ragged Takitimu mountain range that sits as a gateway to Fiordland, is the last place you’d expect to find a vast, lush terrace that’s home to 3200 dairy heifers. The huge, 1300-hectare, Tower Peak Station is full of surprises though – a place where everywhere you turn there’s another jaw-dropping view and around every corner is another expanse of verdant high-quality pasture, mobs of shiny coated heifers or paddocks of deep fertile, finely worked soil ready for their winter crops 56

to be sown. Bulls, beef cattle and even a mob of 100 sheep can be found enjoying the landscape. The farm is owned by Canterbury dairy farming equity partnerships Canlac Holdings and Singletree Dairies and managed by shareholders in those two companies Russell and Leanne Clearwater. The couple are award-winning dairy farmers and were the initial equity managers in Canlac. They made the big move south 18-months ago when the partnership bought the farm although it’s had a

history of ownership with some of the shareholders since 2008, originally through Spectrum Group. Russell and Leanne have brought their passion for rearing great young stock and their expert knowledge in pasture management to the station. Russell says Tower Peak’s core job is to rear close to 1500 young stock for the two Canterbury dairy businesses which milk a total of 5000 cows. The balance of the 3200 rising-two-year-olds that winter on the farm are from other dairy farms, mostly from the Southland area.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

The programme Russell Clearwater - we manage the pasture like a dairy farm without a dairy shed.

All up 13 different entities send their calves to the property for the 15-16 months it takes for them to be grown through to being in-calf themselves and ready to go back to their herds for wintering prior to their first calving. The property had been glanced but not hit with Mycoplasma bovis when it was suspected as a trace farm before Russell and Leanne came on board. It was fully tested though and certified clear but managing biosecurity and ensuring no animal-to-animal contact from heifers from different farms is now a strict part of the system. Russell says the aim in buying Tower Peak was to help reduce grazing costs for the two farming entities in Canterbury which were paying about $1 million between them on grazing. The farm had to be big enough to support a management team so that it could operate without the dairy farm staff. Equivalent land in Canterbury was selling at close to $45,000/ha but by coming further south they were able to buy the large-scale enterprise for a fraction of the cost. Russell says Tower Peak ticked all the boxes and by taking on additional grazing it’s a profitable business that more than pays its way and is able to reduce debt.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

From late November the calves start arriving en masse. Close to 20 unit loads of young animals will arrive over a two-month period and when trucking R2s out in April is included, more than 100 unit loads of animals a year come and go. Each animal’s time on the station is electronically tracked and recorded with drenchings, weighings and matings all noted. MINDA CSV data files can be sent before the calves arrive with the information loaded into the Tower Peak system. They’re grouped on the system as belonging to their particular farm and remain in that electronic and physical group for the rest of their time on the station. A giant etched whiteboard allows monthly key data and information to be recorded for each group too so that at a quick glance the farm team can see what actions should be taken at each monthly visit to the yards for the young animals and what happened last time. Diligently recording data and information, both electronic and written is a big part of keeping the system running smoothly at Tower Peak. Stock movements in and out of the station, deaths, animal health actions, just about everything that’s carried out with the stock is recorded when it happens and each month Leanne loads that up into the stock reconciliation spreadsheet. Monthly invoices can then be produced and sent out to farmers. When the calves arrive they’re unloaded and settled in for a day and then brought into the large covered yards and run through the Gallagher weigh system to have their weights, EID numbers and visual tags recorded. All calves will have received a copper bullet and seven-in-one drench before they arrive on the station so they’re covered for leptospirosis and clostridia disease. On that first weigh-in at Tower Peak they’re given a triple acting “quarantine drench” and then moved out to the paddock areas they’ve been allocated to. “We let them selectively graze 57

Kathryn Hutchings - at a glance the vital data.

rather than break-feed them for as long as we can while they’re calves. They’ll go into a paddock about half a round length before the R2s,” Russell says. Tower Peak carries its own beef animals with about 235 R2 beef steers and heifers and they’ll be used to clean up behind R2 dairy heifers if needed. The grazing system helps lower the worm burden for calves too. Russell and Leanne set a minimum of 100kg before they’ll take delivery preferring they’re heavier than that the later the arrival date. The aim with a weaned calf is to get a good quick transition out of weaning so they’re moving forward and growing. Getting calves to good weights before their first winter is very much the focus and how well they’ve been reared as young calves early in their lives is important. “There are four main stages in getting heifers to 90% of bodyweight before first calving and each stage can depend on the success of the one before it. “I look at it like a limited overs cricket match. If you leave your run too late then the run rates too high and you don’t make it. “If they arrive here late and light then we’re racing to get them to where they need to be,” Russell says.

The R1s are drenched every 28 days with a double-acting oral drench and in autumn are given a booster for leptospirosis. Through autumn they’re likely to go on to a break-feeding regime with plenty of high-quality pasture so the station’s target average cover for the start of winter can be achieved. The R1s are transitioned on to crop in mid-May and drenched with an injectable, Eclipse E, get a long-acting selenium injectable and get a 20g copper bullet. They’re automatically weighed in the yard every time they’re drenched and their weights recorded through the Gallagher weigh system. The CSV file is then emailed through to LIC to load it onto MINDA Weights. If the dairy farmers haven’t loaded their young stock in MINDA the information is sent via email. From this coming winter the winter crop will include more fodder beet as the station aims to use the higher yielding beet to reduce the cropping and regrassing area. Leanne says they’ve re-grassed about 400ha since they arrived just because of the cropping programme using swedes. A good portion of the station’s 1100ha of flat terrace land had been re-grassed over the

two to three years prior to their arrival too. They grew 17-19 tonnes of swede crops last winter and expect fodder beet crops to also do well. A portion of the area in winter crop this coming winter will be double-cropped – so go from fodder beet to swedes the following winter before it goes back into permanent pasture. Each mob winters on their own crop area and enough pasture is saved adjacent to the crop any tail-end animals can be taken off crop and set-stocked on pasture from early July. From late November to April the station has both R1s and R2s to manage with staff busy setting up breaks, shifting animals, bringing calves in for drenching and heifer mating.

Mating The station has the facilities to artificially inseminate (AI) heifers and this past mating four farms chose to do so. “We do ask farmers to take part ownership of the job because our staff have their own jobs to do too. Some come themselves and some send their staff to help,” Leanne says. Again, planning is a must and the farmers will order the semen and set the plan as to the type of synchrony and mating programme they’ll use. “We’ll graze the AI heifers a bit closer to the yards so it’s easier on everyone and we plan ahead so there’s no clash with dates and using the yards,” Russell says. This mating two Canterbury farms both used a double progesterone (PG) programme which meant injecting heifers twice, 11 days apart and then inseminated to detected heats for five days. Marker bulls were then put out and on

Tower Peaks Station - a vast lush terraced land at 300m above sea level on the flanks of Fiordland.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

day 16 they inseminated again for another week on detected heats to catch returns (animals that failed to get in calf to first insemination and returned to heat) and take some pressure off bulls. Another farm used a CIDR programme followed by blanket inseminations. They have a purpose-built race with lift-up side and can get a good efficient system running. “One mating we had 450 heifers from one farm to do on one day and got through them in 4.5 hours,” she says. By the end of April it’s time to start the next major logistical project – getting heifers back to their farms. Russell says they’re all weighed as they leave and NAIT transfers done very simply via an app that synchs with the Gallagher system in the yards. Having coped with a major drought in their first summer and with two winters under their belts the couple know the station has the ability to grow plenty of top-quality feed. “We’re confident we can churn out 450-480kg heifers year-in year-out that are 95%+ in calf,” Russell says. The couple’s focus now is executing their plans year-in year-out and developing the next generation of management to do the same.

She’s come to stay

Working as 2IC on an expansive young stock rearing property on the other side of the world isn’t where Kathryn Hutchings expected to find herself when she set out on a bit of an OE from the United Kingdom three years ago. But the 27-year-old has fallen for the Kiwi farm life and is soaking up every bit of knowledge she can on managing pastures and developing her management

Kathryn Hutchings: after arriving with her five dogs, she’s fallen for Tower Peak Station and told her UK parents shes staying.

skills. Having earned a Diploma in Agriculture from Lackham College in 2011 in Wiltshire and then running her own business doing general farm work, contract lambing and relief milking for five farming clients in the UK she set off on six-month working holiday in New Zealand in 2015. She initially worked for Will Grayling at Ashpouri – part of Singletree Dairies and in October 2015, and four months into her holiday job, was offered a position on the leased support block in Canterbury. “So I rang my parents and told them I wasn’t coming home after all.” She worked for Will for two seasons but when she went down to Tower Peak to help load up 3500 R2 heifers heading back to their farm owners, she fell in love with the place. Russell and Leanne had not long arrived

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

too and needed a competent extra person to make up what’s now a three-staff team and help run the busy, logistically full-on, multi-mobbed, intensive yet extensive operation. With her small team of beloved dogs and already ensconced as the Te Anau Young Farmers chair it seems fair to say Kathryn’s found her place. The scale of farming here, the opportunities to learn and develop skills and to progress have blown her away. “If I’d stayed at home I’d still be doing what I was three years ago.” She’s completed Primary ITO levels three and four and is now working on level five. Management is in her sights and Russell says it’s rewarding to see someone come along and grasp the opportunities so many young Kiwis fail to see.

LEFT: Russell and Leanne Clearwater: “We manage this place like a dairy farm without a dairy shed.” ABOVE: The biggest challenge is managing carrying enough stock through the winter to manage the spring surplus, both balage and stack silage are made on the flat terrace land.

Pasture management “We treat this place like a dairy farm without a dairy shed. “Instead of producing milk we’re growing liveweight and we’re using pasture – and crops in winter – to do that,” Russell says. The biggest challenge is carrying enough stock through the winter to effectively manage the growth through the spring. “We have a certain demand for silage grown here for use in winter and autumn but beyond that we have to manage the surpluses with stock. So just like a dairy farm we’re always looking at supply and demand, setting up for spring in autumn and then through the spring, how we manage the surplus,” Russell says.

The large area of flat terrace land means most of the farm can be mown so they take both balage and stack silage. They don’t feed out in spring to reduce supplement wastage and pasture damage and reduce the workload. The aim is for a pre-graze cover of 3200kg drymatter (DM)/ha and residuals depend on the class of stock with beef cattle used to clean up. They have more than 100 electric reels and standards so they can manage the pasture intensively. Mob sizes are 100-180 making it easier to eyeball all animals and easier to manage them when it’s wet. “If needed we can tuck them into gullies to save the terrace paddocks

and provide more shelter, Leanne says, although the station is well planted with about 50ha worth of mature shelter belts. While there are a lot of animals on the station it’s sheer size means, at 3.2 heifers/ ha, it’s not highly stocked. “Through the spring we have an average demand of about 8kg DM/animal so about 24 -30kg DM/ha/day and it doesn’t take long – about late September, early October before we’re growing above that,” says Russell. It’s not uncommon for the property’s expanse of young grass to hit growth rates of 80kg DM/ha/day. Through the autumn they set a round length that’s based on a square metre allocation area per heifer with feed demand met by what’s available in the paddock plus silage.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

SPECIAL REPORT  SUPPORT BLOCKS

A question of control Support land should be valued on what it will grow – flat land is likely to fetch a premium. nder the cold hard light Fertility, drainage issues, of financial scrutiny the pasture quality and the ability decision to own or lease to crop on it should all be a support block is likely to taken into account. come down to how highly “They’re all going to you value control. dictate how much you can Chartered accountant and dairy grow and what weight gains farmer Melissa Slattery says the you’ll be able to achieve.” numbers generally come out At $40,000/ha for an break-even or negative when the interest rate of 4.5% the analysis is done on purchasing interest cost will be $1800/ a support block compared with year. If the farm is growing Melissa Slattery: The numbers generally sending young stock and cows 12t DM/ha that interest cost come out break-even or negative on off to a grazier, even when it purchasing a support block. amounts to 15c/kg DM but gives you the ability to harvest there are other costs associated supplement for the milking platform. with owning the runoff that need to be “Of course, it’s going to very much depend on considered too such as rates and insurance, the price you pay for that land and in some cases repairs and maintenance, fertiliser, vehicle there will be opportunities to purchase land for what costs and time. could be deemed below market value but generally “Think hard about how much time it is I’ve found it’s a breakeven or negative proposition,” actually going to take to run it, do you Melissa says. need more labour, what effect will it have DairyNZ information shows that for young stock on the labour you already employ, will you to put on the average 0.6kg/day needed to achieve be doing it all, what will that mean to your their growth rate targets they would have to ability to focus on the dairy farm? consume about 3500 tonnes of drymatter (DM) from “Be realistic about the labour factor and weaning to first calving. take into account the time it takes to travel “So if they’re grazing for 20 weeks at $8/rising to the runoff, what extra vehicle expenses one-year-old and 52 weeks at $12/older heifer the will there be?” cost will be $784/head. If they’re eating 3500t DM If you’re buying, there is likely to be land that means that feed is costing 22c/kg DM – no value appreciation but don’t forget the time other bought-in feed competes.” value of money, Melissa Melissa says for most farmers it’s not the financials “Could you do better putting that that drive the decision to buy or lease a runoff it’s money into something else?” having control over stock in terms of achieving target In the end the control and biosecurity growth rates, body condition scores, animal health factor may win out but she says it’s outcomes and more recently, with the advent of important to go into the proposition with Mycoplasma bovis, biosecurity. eyes open to the real costs. Interest in support blocks will rise after droughts or “You may want to be in control of weather events or when usual support arrangements youngstock because you’ve been stung fall through. with heifers coming back too light but if “Some people will be prepared to pay a premium you’re going to take over managing those at the moment and, with interest rates still low and weight gains you’ve got to be prepared to the smaller land parcel size of a runoff making it a bit actually get out there and do it properly easier to get finance, there is a false economy about to achieve what you set out to.” it at the moment.”

Words by: Anne Lee

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

SPECIAL REPORT  SUPPORT BLOCKS

Securing supplement supply For a high-input dairy farm operation, securing supplement is a key factor in the profit margin. The Bennett family have bought a support block to grow maize in a bid to control their feed costs. Sheryl Brown reports. Photos: Emma McCarthy

hen buying land to use as a support block, you need to take all factors into consideration, Jeremy Bennett says. Jeremy is the operations manager for his family dairy farm, which he and wife Lucy own a 30% equity share in. The family bought a 41-hectare property earlier this year predominantly as a maize cropping block for $60,000/ha – and that price had to be justified, Jeremy says. The benefit of buying their own cropping block is they can secure feed source at a lower cost, with the bonus of having winter grazing for some of their yearlings. The Bennetts are a DairyNZ System 5 operation that grows 35ha maize on their milking platform, and were previously buying in up to 70ha of maize silage every year. The support block, just 23km from the home farm, is flat and has the potential to yield good maize crops, Jeremy says. They can grow almost 40ha more themselves, at a cost of $0.26c/kg drymatter (DM) in the stack, and buy in 62

the rest, at a cost of $0.33/kg DM in the stack. The support block can grow maize crops that are 23 tonnes DM, which is better than the 20t DM crops they can yield off their milking platform. They should get about 910t maize off the block and another 280t of grass silage from the annual grass, Jeremy says. “We wanted to guarantee feed supply, and control the price to a certain extent. Buying maize from the market, we can pay 20c/kg DM up to 25c/kg DM, depending on milk price. That’s how it works, everyone has to earn money. “But we also wanted control of planting dates, now we can harvest the same time as we harvest at home.” They now grow Pioneer 9400, which allows them to leave the paddocks in grass for a month longer, Jeremy says. “We used to spray out 10 September, now we spray out 10 October and plant 25 October. I felt I was missing out on grass, and protein is the most expensive supplement to buy.”

Key facts • Owners: David and Raewyn Bennett (70%) Jeremy and Lucy Bennett (30%) • Location: Richmond Downs, Matamata • Area: 545ha • Milking platform: 352ha effective • Cows: 1440 Friesians • System: DairyNZ System 5, split calving 70% Spring, 30% Autumn • Production: 500kg MS/cow; 743,000kg MS • Young stock onfarm: 206 Autumn born R2s, 213 Autumn born R1s, 173 Spring born R1s, 50 Spring born R2s • Young stock out grazing: 150 Spring born R2s • Farm dairy: 54-bail rotary, protrack, ACRs, auto teat sprayer, 22-aside herringbone, auto teat sprayer.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Cows in one of the covered feed pads.

They probably get a slightly less drymatter crop, but that’s made up for by the extra grass they can harvest, he says. They typically harvest their maize crop in the first week of March to ensure the paddocks are ready for grazing by May for the winter milkers. When purchasing a support block you have to look at how much of the land is able to be put into crops, how much of it is steep/ marginal land, and how many kilograms of drymatter you can potentially grow on that land, he says. The Bennents bought a support block for growing crops because they wanted more control of their supplement.

‘We wanted to guarantee feed supply, and control the price to a certain extent. Buying maize from the market, we can pay 20c/kg DM up to 25c/kg DM, depending on milk price. That’s how it works, everyone has to earn money.’

The support block can grow maize crops that are 23 tonnes DM for silage. Filling the feed bunker.

“If a property can only harvest 8-9t DM in grass, that has to be taken into your calculations. This block is great, it’s 41ha and we were able to plant 39.4ha in maize.” If a drystock block comes on the market and there is 30ha of pine country, that inflates the value of the rest of the land, he says. That has to be taken into your calculations. When they bought the support block it had two houses on it which they calculated could earn up to $25,000/year in rent to subsidise the interest cost. A bonus was grazing some yearlings for three months during winter to take the pressure off the milking platform. When they took the property over on June 1, they were short of grass at home so sent 150 R2s there. The cartage was $4.00 each way, the last of the R2s left in September, leaving time for growth to take a cut of silage off the block before planting in maize.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Growing Maize on a support block lets Jeremy Bennett control harvest dates.

Farming focus Jeremy has been farming on his parents’ dairy farm in Richmond Downs for the best part of the last 15 years. After school he went dairy farming in Hawke’s Bay before returning to the home farm where he has worked in various roles ever since, apart from a stint travelling overseas. David and Raewyn have been farming on the Richmond Downs farm for 25 years and have run a high-input system for most of that time. “Dad has tried all sorts of weird and wonderful things. I remember as a kid beating squash in the paddock we were feeding to the cows.” David and Raewyn started split calving almost 20 years ago and have traditionally run 70% spring and 30% autumn cows. They flipped that ratio in recent years to follow milk price, but they will be reverting back again next season, Jeremy says. “Our best year was when we produced 604kg MS/cow – that was our best production, but we were feeding up to 64

10 different ingredients. We’ve simplified a lot. “We lost focus on our grass growth – focussed on supplement and production. We have changed our farming system now to be more resilient through fluctuating milk prices.” The profit margin of having more autumn cows turned out to be marginal because of higher feed prices and the damage to the farm during the winter months, Jeremy says. “There was quite a lot of damage to the races and gateways, and more pasture damage - that’s hard to put a monetary value on.” In 2008 they purchased a 157ha farm 500m down the road, originally seeing it as a support block to their home dairy farm. The property has some steeper terrain. For the first two years they sprayed out every paddock they could get a tractor over and planted 85ha in maize. They started autumn milking 260 cows on the farm in 2013 and when they purchased an adjoining 62ha they increased cow numbers to 440 and switched to all spring calving. “It’s quite a wet farm during the winter

so we changed to spring calving. It’s steeper than the home farm.” The milking platform is now 105ha and they graze young stock and grow 20ha of maize on the remaining area. The cows and young stock go between the two farms accordingly. The home farm had two 400-cow feed pads but because the feed pads were used constantly it was never clean enough to divert water, so the effluent pond filled up quickly and they were irrigating at nonoptimal times, Jeremy says. They were also feeding potato waste at times and had multiple issues with pumps and stirrers. As a solution they built four covered feed pads in 2015 on the home farm, they had already built one on the second farm two years prior. They now empty the feed pads twice a year and spread the effluent on the paddocks with a slurry tanker. They have eight million litres of storage on the home farm and 2m on the second farm to cater for the farm dairies. They irrigate over 120ha and 65ha respectively. They do a weekly farm walk and Jeremy says the effluent-irrigated paddocks are

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

The Bennetts have shifted to a simpler system.

performing a lot better than the rest of the farm and he wants to get effluent on to more paddocks in future. The justification to build five covered feed pads came back to calculating the cost benefits, Jeremy says. “We calculated that if we saved 5% wastage of feed it would save us $150,000/year. The savings on wear and tear on effluent pumps and extra pumping of rainwater that we now don’t have to deal with, would save us $50,000/ year.” The cows are fed 1500kg maize/cow/year, 1t palm kernel/cow/year, 300kg DDG/cow/year (winter milkers only), and 80kg straw or hay. They are also currently feeding the cows bread waste, and feed extra grass silage throughout the

year if climatic conditions enable grass silage to be made. The milking platforms harvest an average of 13-14t DM/ha, but in a poor year can harvest only 10t DM/ha. The cost of bought-in supplement is $1.75/ kg MS (maize, grass silage, hay, DDG, PKE, bread waste). The cropping costs are $0.18/ kg MS. The 1000 cows on the home farm are run in two herds, which change daily depending on paddock size. “The cows are all treated the same and we match cows to the paddock. Paddock sizes vary so much on this farm.” One day 570 cows will go to the first paddock, and the rest go to the second

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paddock. The next day the first 400 cows will go to the first paddock, and the rest go to the second paddock.” The herd is predominately LIC Friesian cows, but they want to head to a more crossbred cow which will suit the farm’s contour better. David is an AI technician and does all the AI on both farms. He inseminates the cows on the rotary, which saves a lot of time not having to draft cows out, then heads to the second farm to inseminate the drafted cows. They are looking to simplify their system and will only be keeping spring-born calves and sell all the autumn-born calves in future. Lucy is responsible for rearing all the calves. Raewyn takes care of most of the accounting and now supervises the grandchildren (Bella, 5 and Olly, 3), to free Lucy up to rear calves. The autumn cows start calving on March 15, and the spring herd August 1. They have pushed the spring calving date forward because the climatic conditions are generally slightly better in August. They lose out slightly on the early spring calf market, but that’s a small loss and it’s not their main driver. Jeremy is the operations manager, and they employ seven fulltime staff, two tractor drivers, three farm assistants on the home farm and two staff that manage the second farm. It works well employing people in 66

specialised roles, Jeremy says. The tractor drivers go between the properties, and Jeremy floats between the two farms. “We could just about justify employing someone to look after the young stock on the farm.” There is potential to milk more cows on the second farm in future and send a higher number of young stock grazing. Jeremy wants to do some calculations on their options. “Young stock are extra work – shifting

them, drenching them. We probably only do an average job – the guys are focussed on getting milk out of cows, young stock come second. They might not get shifted at the optimal time, or it’s easier to give them a big paddock for three days instead of putting up break fences.” The stocking rate is right for now and not having to feed supplement to young stock – but once it gets dry they have to bring them into the covered feed pad and it’s another cost of feed and time, he says.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

SPECIAL REPORT  SUPPORT BLOCKS

Weighing the factors

Operating profit $/ha

airyNZ has run various case scenarios of grazing options, with the conclusion that grazing young stock off the milking platform is the most profitable. The decision on grazing replacement stock is complicated and hinges on a multitude of factors, however. Before making a decision, farmers need to weigh up all the factors, from biosecurity, through to animal health, animal performance, and ultimately profitability. With the threat of Mycoplasma bovis, for example, some farmers are wanting a closed system, where their stock are not exposed and therefore eliminating their risk. When farmers decide to graze their replacement stock on the milking platform, however, they’re essentially taking the grass out of a milking cow’s mouth and giving it to a beef animal, DairyNZ dairy systems specialist Mark Neal says. During a feed deficit the lactating cows will tend to get priority, which may be at the detriment of those young stock grazing at home. “The driver is to produce milk, so farmers tend to prioritise cows in a drought.” On the flip side, if graziers suffer a feed deficit, farmers can become concerned with how their young stock are being looked after, and the impact on their growth. There are benefits to having young stock on the milking platform. For example, having yearlings on the farm makes it easier to synchronise them to mate them through an artificial mating programme. Milking fewer cows on the milking platform

4300 4000 3700 3400 3100 2800 2500 2200 1900 1600 1300 1000 700 400 100 -200

Self Contained Options

Mark Neal: The driver is to produce milk.

will equate to less milk production and ultimately less shares will be required, so farmers could sell some shares. However, with selling those shares, farmers then miss out on the dividend. Ultimately farmers need to weigh up every consideration and do a proper financial and feed budget to make their decision.

Replacement Stock • Study by: Tai Chikazhe, Mark Neal and Paul Bird, DairyNZ BASE SCENARIO • 80ha effective, Stocking rate 2.9 cows/ ha (232 cows) • All young stock reared off farm from Dec 1 • Cows wintered on the milking platform • 5% of platform in maize crop • Production 1068kg MS/ ha, potential pasture growth 14.6tDM/ha

Base Lease-run off Reduce SR all young stock on MP $4.25

$6.25

$8.25

Milk price

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

OPTION 1: Lease support block • 23ha leased for rearing young stock @ $800/ha/year • Potential pasture production 10t DM/ha • Cows wintered on the milking platform • Maize now grown on support block • Imported palm kernel reduced and pasture conserved increased 67

• Stocking rate on the milking platform remains the same as in the base file. • Production same as base, 1,068kgMS/ha • Budgeted on one hour/day spent on the run-off @ $25/hour. This will involve shifting young stock, break fencing, repairing fences, water reticulation, animal health, mating, managing feed, fertiliser application. Hours involved (travelling) could be more depending on the run-off location. Time is often under estimated. OPTION 2: Reduced stocking rate, all young stock reared on milking platform • All young stock reared on the milking platform. • Cows wintered on the milking platform • Stocking rate reduced from 2.9 to 2.4 cows/ha to accommodate young stock reared on platform (197 cows, down 40 cows, -14%). • Maintained the same percentage replacement rate. • 5% of platform in maize crop, Potential pasture growth the same, 14.6tDM/ha. • Production 899kgMS/ha CONCLUSION: There is a loss of $34,743 ($434/ha) by grazing all replacement heifers on the milking area compared to grazing off the milking area, based on a $6.25 milk price and $7.50/head/

Modelling results: Operating Profit and Milk price Operating Profit per ha [difference from base] Base (Graze off)

Lease support block

Reduce SR, all young stock on

$4.25

128

-76 [-204]

-29 [-157]

$6.25

2,203

2,058 [-145]

1,769 [-434]

$8.25

4,226

4,192 [-34]

3,566 [-660]

Milk price

Assumed that grazing rates are adjusted with milk price Grazing cost, $ per head per month Milk price

0-9 months

10-21 months

22 months +

$4.25

6.50

9.50

22.00

$6.25

7.50

10.50

25.00

$8.25

9.50

12.50

28.00

week for R1 heifers and $10.50/head/week for R2s. This analysis is very sensitive to milk price and grazing rates. At a $4.25 milk price there is a reduced profit of approximately $14,160 ($177/ ha) from grazing heifers on the milking platform. There are also a large number of other considerations that need to be thoroughly taken into account particularly around long-term grazing plans, management complexity and risk. OTHER THINGS TO CONSIDER: Economics sensitive to payout, though even at $4.25, grazing off is ahead financially. • Potentially less disease due to closed herd. • More control over replacements, though need skill to be able to manage extra classes of stock. • Increased grazing plan complexity on the dairy unit however in some cases it may be easier to ‘clean up’ the odd paddock that is not grazed out properly. • Less grazing pressure in spring – need to conserve more? • Labour: Less milking time but more classes of stock to manage. • Increased genetic gain if heifers go to AB. • Not exposed to fluctuation in grazing costs. • Reduced impact on winter cashflow with heifers on the milking area. • Animal health and breeding costs – could be more or less depending on the arrangement with grazier. • Asset base reduced with lower stock numbers – would have large impact on 50% sharemilkers. • Potential impact on farm value ie: lower MS production. • May impact relationship with grazier if required in the future. • Grazier carries risk if drought – still has to feed stock although in practice this does not always occur. • Ability to utilise non-dairy platform land. • Potentially higher staff satisfaction given another class of stock to manage - more interesting? • Hard to reverse if you don’t keep enough replacements, and don’t want to buy stock.

Stock on dairy farm or at a runoff How will the change in milk production effect capacity adjustment? How much will stock sales change? This may be higher in the first season but lower in following seasons. Will lower cow costs, grazing costs and/or stock cartage offset the lower milk income? Does the dairy farm have the facilities necessary for drenching, weighing and vaccinating young stock?

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Partial Budget Farm business name

Example Farm Limited

Partial budget description

Base: Graze R1yr & R2yr off vs Graze R1yr & R2yr heifers on the milking platform with reduced Stocking Rate (Alternative 2)

Status quo situation

80 hectare, 232 cow dairy farm, grazes ‘off’ all replacement stock - 51 R1 yr heifers and 51 R2 yr heifers from 5 months of age to 22 months of age. Pasture eaten/ha = 13.4 tonnes DM/ha (232 cows x 4,800 kgDM/cow / 80ha = 13.9 tDM/ha)

Proposed change to status quo

Graze all replacement stock on the milking platform. Reduce cow numbers to 197 and graze 43 R 1yr and 43 R2 yr heifers on the effective milking area. This will maintain the same pasture demand as the status quo situation at about 13.8 tDM/ha.

Other assumptions

368 kgMS/cow, 450kg cross bred cows eat 4.8 tonnesDM/yr, R1yr heifers eat 960 kgDM from 3 to 10 months and R2 heifer eat 2,630 kgDM from 11-22months (total of 3,585 kgDM from 3 to 22 months). Small reduction in MS/cow (3kgMS /cow) and increased silage made.

Losses Decreased revenue from proposed change

area or number

yield or units

$/unit

unit

Total

Per ha

Reduced milk income

368

$ 6.25

kgMS

$ 80,500

$ 1,006

Fewer cull cows -20% culls x 35 cows

$ 500.00

cow

$ 3,500

$ 44

Fewer calf sales

$ 50.00

calf

$ 1,750

$ 22

12,880

$ 0.25

$ 3,220

$ 40

197

$ 6.25

kgms

$ 3,694

$ 46

$ 92,664

$ 1,158

Less dividend from Fonterra (after sale of shares) Lower production per cow Sub-total decreased revenue (C) Increased costs from proposed change Labour (increased labour less reduced milking time) Additional Pasture Conservation

area or number

yield or units

$/unit

unit

Total

Per ha

0.50

365

$ 25.00

hours / day

$ 4,563

$ 57

$ 140.00

per tDM

$ 3,500

$ 44

$ 8,063

$ 101

$ 100,726

$ 1,259

Sub-total Increased Costs (D) Total Losses (C + D = F)

Gains Decreased costs from proposed change

area or number

yield or units

$/unit

unit

Total

Per ha

Less R 1 hfr grazing (heifers x weeks x $/week)

$ 7.50

week

$ 8,422

$ 105

Less R 2 hfr grazing (up to winter)

$ 10.50

week

$ 27,868

$ 348

Less R 2 hfr grazing (in winter)

$ 25.00

cow

$ 11,484

$ 144

Animal health & breeding

$ 150.00

cow

$ 5,250

$ 66

Farm dairy + electricity - say $75/cow

$ 75.00

cow

$ 2,625

$ 33

Freight Calves (60km Journey - one way)

$ 15.00

calf

$ 766

$ 10

Freight R 2 hfrs (60 km Journey - one way)

$ 35.00

hfr

$ 1,786

$ 22

12,880

$ 5.00

5.0%

$ 3,220

$ 40

Sell surplus replacements R1+R2 (not in Farmax)

$ 1,000

5.0%

$ 385

Interest savings (sell cows & reduce debt) 35 cows @ $1800 (not in Farmax)

$ 1,800

5.0%

$ 3,150

$ 39

Sub-total Decreased Costs (B)

$ 64,955

$ 812

Total Gains (A + B = E)

$ 64,955

$ 812

-$35,771

-$447

Interest savings - sell Fonterra shares

NET GAIN or LOSS (E - F)

Per ha

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Will the dairy farm’s fencing be able to contain calves? How will keeping heifers on farm effect seasonal feed budgeting? Young stock feed demand is constantly increasing to reach liveweight targets compared to dairy cows which peaks in the spring and then flattens off and declines through the autumn. How will the labour requirements change by carrying multiple stock classes on farm? Milking another row of cows might add 10 minutes to every milking where drenching and vaccinating heifers requires different stock handling skills and is another job on farm. Do milking cows get their minerals, rumensin, bloat oil, zinc through stock water? Is this suitable for young stock? If you currently work with a good grazier, how easy will it be to find someone that has a similar standard in the future if you decide to go back? Finding a grazier who can take your stock numbers and is good to work with is not always easy.

Tools to use to calculate grazing options on support blocks There are four ways to analyse the economics of heifer grazing. • Gross margin comparison to other enterprises that could be run on the land. • The revenue foregone by keeping dairy heifers on the milking platform and reducing milk production. • Cost to lifetime productivity if heifers miss liveweight targets. • Feed requirements and seasonal feed value.

SPECIAL REPORT  SUPPORT BLOCKS

Alan Davie-Martin and Henning Schritt – leasing support land gives a greater level of control over young stock rearing.

That extra eFfort Words by: Anne Lee

here’s a reason support blocks are called runoffs, Culverden dairy farmer Alan Davie-Martin says. “It’s because you’re always running off there.” For Alan that’s a 10km trip – close enough to whip down to do a “so-called 20-minute job”. “But you always underestimate the time factor – it’s never just one quick job so it’s the time and people factor you really need to think about.” Alan and wife Sharron moved to Culverden from Northland in 2005 to buy the 141 effective hectares Beechbank. About four years later they added a 100ha (90ha effective) support block to the system. Alan wryly points out that Sharron would say she’d been ripped off because part of the enticement in making the big shift was that cows would be going off the farm on May 31 each year and they’d have a twomonth break. 70

But when the block came up for lease, Alan says he decided to seize the opportunity to bring the management of young stock and some cow wintering back to him and farm staff. It wasn’t that he’d been particularly stung by graziers not achieving heifer weights or problems through winter but it had been hard to get consistency through that time. “You’d just think you had a good set up with a grazier, a good relationship but then they’d leave, sell the farm, move on to something else or it would get converted. “It came down to opportunity really and timing with when the block came up and its location.” The block was 50% dryland and 50% watered by border dyke irrigation so it had its challenges. Initially the owner wanted a three-year lease term but Alan pushed for a longer period to give security and the opportunity to get returns from any inputs, such as fertiliser and re-grassing after a crop. The term was set at six years with the right to renew – which Alan and Sharron

FARM facts • Location: Culverden • Dairy farm area: 141ha effective • Cows: 540 crossbred • Pasture eaten 15.5-17t DM/ha • Supplement: 650-800kg DM/cow silage and palm kernel • Production: 265,000kg MS • Staff: Two full time and three casuals. • Reproduction: 15% empty after 10 weeks mating • Farm working expenses: $3.85/kg MS • Support block: 100ha – 90ha effective leased. • Support block costs: • 2017-18 $198,500 with additional $45,000 paid out in winter grazing. • 2016-17 $169,000 with additional $68,000 paid out in winter grazing.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

have done once. Alan says at the outset he thought he’d be able to do much of the work himself, shifting stock and organising contractors. “I didn’t think it would take much, but after a few months I said Uh oh what are you doing here? “You’ve got aspirations for doing other things off farm and now you’ve gone and given yourself more work.” Alan says it never ends up being just a matter of shooting down and opening a gate so the work load throughout the year does increase. “Instead of the grazier drenching calves it’s now a job you have to do.”

‘You’d just think you had a good set up with a grazier, a good relationship but then they’d leave, sell the farm, move on to something else or it would get converted.’ Alan says he reassessed how the work would be divvied up and, with the need for an extra half a labour unit at the dairy farm to achieve work-life balance goals, he made the labour requirement across the two units fit quite neatly. Alan and Sharron have two long-serving, full-time staff members Henning Schritt and Danny Sales and three casual staff. Henning has the support block as one of his responsibilities. Alan accounts for the costs of the support block separately if they’re costs that are specific to it but doesn’t go to the extent of separating out the hours staff spend there or vehicle and machinery costs when it’s machinery shared by both. He estimates in an average season the true cost of leasing and running the support block is on par with or slightly more than if he grazed everything off. When he first considered leasing the block, one of his advisers suggested the lease cost was too dear but Alan says in the end he was prepared to pay the extra for

control and location. “It’s important to drive it hard then to mitigate that extra cost. I think you have to treat any runoff just like the platform – not a lifestyle block so you have to set up good systems.” With half the property dryland and half border dyked they’ve been constrained in the total drymatter it’s been able to grow and have had to winter 30-50% of the herd away depending on the season. They’ve grown mostly kale and some fodder beet for both young stock (150 calves and 150 heifers) and the mature cows wintering there and over the last three years have taken an average of 140 tonnes DM silage for the milking platform.

Irrigation upgrade This coming winter will be the first year they’ve been able to winter all cows on the support block saving about $68,000 in winter grazing thanks to Amuri Irrigation Company’s (AIC) big investment to pipe the scheme water. It’s meant the end of border dyke irrigation and led to the whole block now being watered by pivot irrigation. The farm owner has staged the irrigation upgrade over two seasons so Alan was able to winter more cows on the block last winter and has been able to start boosting drymatter production. Piping means the water arrives under enough pressure to drive the pivots around, cutting out Alan’s irrigation electricity cost. He still pays the irrigation charges from the scheme even though they’ve gone up significantly and now include a capital cost but negotiations with the

Alan Davie-Martin and Henning Schritt – oats sown as a catchcrop are cut for silage improving environmental outcomes and boosting drymatter production. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

land owner over increased lease payments have taken that into consideration. Alan says it’s worked out pretty fair given the extra ability of the block to grow drymatter. “But again we’ve got to work pretty hard so we actually grow and utilise all that potential extra feed and recoup that extra cost.” Capital improvements and how or if those costs are apportioned can make for sticky negotiations so it’s important to have a good, open relationship between lessor and lessee. “In the end it has to be fair on both parties or the thing will break down,” Alan says. Every lease agreement will be different, so to compare the lease price only can be misleading. They’ve saved on winter grazing and electricity but will have to pay increased cropping costs. He’s sown 17ha of fodder beet for the coming winter and harvested 36ha of oats for silage last month that had been sown as a catch crop following last winter’s kale and fodder beet crops. About 6-8ha of the oats area will go back into kale with the balance going into new pasture. “With the irrigation we’ve got now we have more options and we’ll be able to do more pasture renewal to lift the drymatter performance.” The flexibility helps Alan and Sharron adapt to take advantage of opportunities and deal with challenges. They’ve used an average of 400kg palm kernel per cow over the last three seasons but will expect the support block to replace a portion of that. Having a support block, whether it be leased or owned can also add to compliance costs and complexity. “We have to have a farm environment plan for the support block too and are audited on that. The farm owner and the lessee have responsibilities there so that’s something else that needs to be understood by both parties,” Alan says. The nutrient allocations are managed by AIC and both the milking platform and the support block must operate to good management practice. On balance, for Alan and Sharron, leasing the support block has given them a greater level of control and security over animal condition and growth rates as well as a known price for feed inputs – for both the dry period and wintering. “I think we’ve struck it about right but it does require effort.” 72

Alan Davie-Martin – good business relationship needed to settle on how to fairly deal with improvements on leased land.

Grazing, leasing or owning Grazing Spending time teaming up with a good grazier to deliver what you want at a pre-arranged price on a long-term basis is still the first prize when it comes to the economics and effort but it’s often easier said than done, Alan says. Graziers are often reluctant to commit to price in case if they think it will be more expensive. Results can be variable and other options come up for graziers. “But some dairy farmers don’t play fair either. They pull out at the last minute or are slow to commit. They can expect miracles when they turn up with under nourished animals and expect the grazier to sort it out and then grizzle when they don’t.”

Leasing “Can be a good option if you can get it but a lease needs to be a reasonable length to get returns from investment into the property and give you flexibility on how you manage the block.” It gives control and the written contract gives certainty although there’s likely to be a pricing review set into the contract when it comes up for renewal. Short leases aren’t really good for either party as they encourage short term thinking. Leases come to an end at some point and then you’re left with finding a new arrangement. Then there’s the question of how to deal with capital improvements - how does it affect the lease price, does the lessee pay part or all of capital costs and what arrangements are set up to get value back when the lease comes to an end? “You need good, open communication and a good working relationship.”

Ownership “Gives you a committee of one - you call the shots and can get on with it. “Capital gain - you get it.” But there’s a big upfront capital outlay and increase in debt. If it’s a good support block the temptation has been there to convert it, although this may not be as much of a factor at the moment. Both owning and leasing can improve biosecurity – Mycoplasma bovis.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Take in the views from the paddock gate. Listen to Jamie, Rowena & Sam for the lay of the land every weekday from 12-1pm.

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Dairy Exporter | www.nzfarmlife.co.nz | December 2018

ENVIRONMENT BALLANCE WINNER

A little piece of paradise A Dannevirke couple have developed an award-winning dairy farm in the midst of sheep and beef country. Jackie Harrigan reports. Photos: Brad Hanson. ndrew Hardie and Helen Long scoured the country from Kaitaia to Bluff when looking for a farm to buy or invest in; they ended up buying into the flattest farm in a sheep and beef area a stone’s throw from where Andrew grew up, east of Dannevirke. Half the farm, split off Ben Nevis station, was converted to dairy and the other half still running deer on the block bordered by two rivers, the upper Manawatu and the Mangatewainui river when they bought into it as an equity partnership with four other parties. Right away the Hardies appreciated the sensitive nature of the Manawatu catchment and their property, calling it their ‘little piece of paradise’, and they set about developing and conserving the farm for their family’s future. Their work of the past 19 years has won them the Supreme Award in the Ballance Farm Environment Awards for the Horizons region for 2018, picking up the DairyNZ Sustainability and Stewardship Award, Hill Laboratories AgriScience Award and WaterForce Integrated Management Award.

“It’s an exciting area to farm – we are lucky to have the only flat area between the confluence of the two rivers and a nice mix of country,” Andrew says. “The land was cheaper because of the lower rainfall, with terraces along the river, then old alluvial terraces and rolling areas.” “We can irrigate 130ha for four months out of the DANNEVIRKE Mangatewainui River – it depends on the season but we usually start in mid-November and we will go through to mid-February.” Sometimes they get rain events that mean they can turn off the pivot and laterals irrigation system, but otherwise they monitor the season fairly closely – between their rain records, NIWAs virtual weather station at the property and digging holes they can follow the evapotranspiration rate and keep a water balance profile based on the soil type and contour to help manage irrigation efficiency. “If we water for 100 days, we can apply 3-3.5mm/day – that’s what our system can do.” The farm is mainly recent alluvial soils

FARM FACTS • Te Maunga Farms Ltd • Total area: 428ha (240ha milking platform, 83ha attached runoff, 42ha managed pines, 35ha riparian planting, 28ha shelter trees/races/native trees/ house/ farm buildings. • 35% farm relatively flat, balance rolling plus steeper sidlings. • 130ha irrigated with 45 ha centre pivot, 85ha long laterals • Rainfall: 800-1000mm • Elevation: 205-310asl • 50 bail rotary dairy • Cows: 700 MA Jersey cross OAD cows, replacement heifers and calves. • Fonterra supply: 235000-245,000 kg MS (1000kg MS/ha, 342kg MS/ cow) • System two: 250t palm kernel and some hay bought in. • FWE: $2.00/kg MS • Contract milkers: Liam and Margot Richardson

with sandy silt loams, and 1/3 of it yellowbrown clay soils which have extensive moles and drainage from all the springs coming up through the property.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Andrew Hardie and Helen Longâ&#x20AC;&#x2122;â&#x20AC;&#x2122;s farm is bounded by two rivers. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Non-productive areas have been retired over the years and more productive areas intensified and as the dairy platform grew, production has tripled off the property. “It been about doing things as we could afford to – if we were regrassing we fenced off and retired areas, drained other bits, giving every area the best chance we could of it surviving and thriving.” “The class of land that we could get a tractor over and cultivate it and get it into new grass, we have done – and we have fenced off the other areas because it makes economic sense and increases biodiversity and aesthetic appeal.” Armed with agriculture degrees from Massey University Andrew and Helen had worked their way through the sharemilking system to be running two 50/50 jobs and knew exactly what they wanted to do when they settled down to the Te Maunga equity partnership. Regenerating native bush areas, developing wetlands, retiring areas with permanent fencing, planting pines and over 1000 riparian plants annually and covenanting a QE II area over the years has increased biodiversity and the aesthetics of the property while limiting loss of fertility. In latter years a formal farm plan was developed – in the early years they developed as they could, using their knowledge and common sense, they said. “By intensifying the better areas that were worth investing in, we could retire others.” Cow numbers have waxed and waned, peaking at 880 cows on twice-a-day milking and extra land, owned and leased – so 10 years ago they consolidated, gave up a lease block and sold a 90ha parcel and moved to OAD. This year they have peak milked 650cows and produced almost the same amount of milk. ‘We were chasing our tails a bit on twicea-day – now we are much lower input, and on the low-cost system we are increasing profitability, with less stress and reduced N inputs. The couple went through the consenting

Andrew and Helen with daughter Kaitlyn, an ED nurse who loves to get home to the farm. One of the couple’s sons is a physiotherapist and the youngest son is about to leave school.

process under the One Plan when it was first installed and were one of the first farms to be consented under Table 14.1. Benchmark year was 2012 with 45kg N/ ha leached, and this year the level has dropped to below 30kg/ha. Dropping cow numbers, reducing N applied and using coated N products, increasing the effluent pond area and being more strategic around when the effluent is applied to the 4050ha effluent area through a travelling irrigator and above ground pipes have all contributed to reducing N leaching level. “We were reasonably low by industry standards anyway due to the low rainfall, but the simple system we have adopted has allowed us to reduce further. Cutting out the turnip crops has helped – research showed that strip grazing of turnips caused a huge nutrient dumping on the area, and then a rainfall event caused leaching. Plus we found when the summer turned dry and we really needed the turnips, they suffered and didn’t grow well because of the lack of water. Moving to 24ha of chicory, plantain and clover crop each year means the cows move through on a 18-day round and the crop uses the N. “On the base year we were applying a 190kg N/ha and our strategy is to apply

ONCE-A-DAY MILKING BENEFITS Te Maunga farm is long and narrow with a 5.5km walk from the back of the farm and the long walk and the toll it took on cows prompted Andrew and Helen to look at the once a day milking option in 2008. The couple were both taught at Massey by OAD guru Dr Colin Holmes and were invited to join his early OAD discussion group. Once-a-day milking enabled them to address the 8% level of lame cows and reduce staffing levels. “We used to farm with four permanent staff and casuals for 820 cows, and seemed always to be looking for staff, now we have a contract milker and two staff and life is much less pressured and more enjoyable for us.” Most afternoons work is all finished by 4pm and in the weekends the staff are out the gate by 9-10am. “The staff can be finished and back in town by the time their mates are waking up.” Reproduction has improved, with empty rates dropping from 13% to between 3-8%, allowing them to shorten their mating period to six weeks of AI and three weeks of follow-up bull. The top 2/3 of cows are mated for replacements and the bottom 1/3 get Wagyu semen and the calves are sold under contract at 90kg. While the lactation doesn’t peak as high under OAD, longer days in milk means the farm is producing slightly ahead of the district average per cow with higher profitability under the low cost and low input system.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Helen and Andrew in their Lord of the Rings area.

LORD OF THE RINGS OPEN AIR COVENANT An open-air covenant has recently been approved for an area of significant natural beauty on the property the family call ‘the Lord of the Rings’. The areas is in a bend of the Mangatewainui River, over a steep siding with attractive large weathered limestone outcrops with grass and trees and an unworldly air. By excluding the 10ha paddock from grazing the family are protecting the limestone and area from erosion. 115kg N/ha, we actually only applied 90 last year. Plus we have our own spreader and can pick and mix the time of application – we can do it ourselves or get the fert spreader in and get it all on if the conditions are perfect. “Timely application is quite critical.” The difference between the top 50% and the top 10% of farmers is not what they do, but the timing of it – we have really concentrated on getting the timing right over the years.” Bought-in supplements of maize silage,

palm kernel and hay have been reduced, now cows are wintered at home on 1012ha of fodder beet. Fodder beet can be tricky, Andrew says, both to grow and graze, but he is happy with a yield of 30t/ ha if they can get it. “It’s a bit more expensive if we only get 20t/ha, but we usually get more than that.” With grazing, leaving cows on the beet destroys the soil structure, and impacts the cows health standing in the mud, he says. But by having them on the beet for just a few hours they get the benefit, then move to the grass for a few hours and then move to the standoff pad if its really wet and get fed hay there. If the weather is not wet they can stay on the grass. It’s a versatile crop, says Andrew. “The last couple of years we have started grazing it with the milkers at the end of the season. It can extend the lactation and build cow condition going into winter. If the cows are in good order at drying off they are easy to winter, they are already used to the beet

and there is no transition period.” “We still buy in a little bit of palm kernel, but we have a lot of flexibility in the system – we can buy in or not.” Andrew and Helen have recently bought a support block at Waimarama, in Hawke’s Bay, with 40ha of pasture for young stock and beefies, a scrub block which they plan to let revert and plant up into a 20ha ETS-registered carbon sink and a beautiful house site with a coastal view which will be Andrew and Helen’s retirement spot as they step back from the farm over the next five years. Having bought out their equity partners after 15 years of the partnership, the couple then brought on the Richardsons as contract milkers. Liam and Margot Richardson are a real asset to the farm and business, being passionate and holistic about the environment and the dairy industry. Moving to sharemilkers is the next step, so they can concentrate more on off-farm governance and community initiatives.

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Sustainability has always been their aim, and they say it means longevity and balance across the physical environment, their business and the people within it. “We feel we are the custodians of this little patch of New Zealand and whether we hold it for our three children or someone else’s children, it is our responsibility to value it and enhance it.”

WATER QUALITY AND EFFICIENCY The family have invested in a large effluent storage area and a composting standoff area to make efficient use of nutrients and limit winter damage to the heavier soils on the farm. Constructed with a thick liner covered with 150 mm of pea metal, a carpet membrane and 400mm of wood chip, the area comfortably holds 400 cows who are able to feed on balage and hay from racks between time spent in winter feeding on fodder beet and pasture. About 350 cows will spend 60/80 days on the area through winter from late May. “The positive effects on the soils mean much higher grass growth and the cows enjoy the warmth and dryness of the composting area. The composted woodchip is scraped off and replaced every couple of years and incorporated into a crop paddock. The drainage from the standoff area runs into the effluent system, joining green water recycled as yard washdown before being pumped out onto the 40-50ha effluent irrigation area. “We can often drag the hose over to put effluent onto cropping areas too – adds to the nutrients applied,” Andrew says. “Water is not only a scarce resource, it’s expensive to pump around so we decided when we came here that we would have simple infrastructure to make the most of the resource. Water is pumped up to a tank once and then recycled through the flood wash for cleaning and all run off is captured in the effluent system.” Wetlands have been developed around the farm with Helen and Andrew finishing the development of one area and starting another this season. “Our plan is to control the exit of all runoff from our property through the four distinct water courses that leave it so that each creek or water course leaves through a wetland or sediment trap – so only filtered, N-reduced and settled water leaves the property into the river.” 78

Andrew Hardie and Helen Long, winners of the 2018 Horizons Ballance Farm Environment Award.

SOURCE TO SEA PROJECT Helen and Andrew have been working on a plan for the Mangatewainui catchment under the umbrella of the Manawatu River Source to Sea project, a whole-of-catchment approach to enhancing biodiversity. There are 145 properties in the catchment between the Ruahine ranges and the Manawatu river, and their vision is to see them all working together to protect and enhance the biodiversity and water quality, and eventually have a path for the community to walk, cycle, swim and even stay overnight in accommodation along the banks of the river. The Source to Sea project brings together the many catchment care initiatives already found in the Manawatu River catchment, on both sides of the Ruahine ranges. The vision out to 2040 is an integrated network of biodiversityfocused initiatives, including sustainable business and nature-related activities, collectively contributing to the enhancement of biodiversity to provide benefits to the whole catchment community. Step one is full stock exclusion, step two planting and weed and pest eradication with step three being access for the public, Helen explained. “All of our stock water and water for the houses comes from the Mangatewainui, so we decided very early on that we needed to fence it off, protect it and maintain shade on the margins to regulate the temperature and maintain water quality.” Andrew is a member of the Fonterra Shareholders Council.

Aerial view of Andrew and Helen’s farm.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

ENVIRONMENT ECOLOGICALLY SPEAKING

Healthy ecosystems and healthy people Concern over the state of rivers and nitrogen loads has led to discussion of ecosystem health, environmental scientist Alison Dewes writes.

hen I am asked to define ecosystem health, I have to describe the relationship of this to the wider natural world we live in, because everything is connected. We cannot look at a single metric and hope to have a single solution or a techno fix. Our natural systems depend on health. Only last year did this become a widespread topic of discussion in the national media, before the general election. The reason it was so widely discussed, is because a national direction of the National Policy Statement on Freshwater was released, backing up one from 2014, that became widely known as the NOF (national objectives framework). The NOF

was supposed to include bottom lines for specific values relating to freshwater, only two of which were mandatory – those for ecosystem health and human health for recreations. However, these bottom lines were criticised by some scientists and the Parliamentary Commissioner for the Environment herself as being too weak. The proposed bottom line for nitrate toxicity in rivers allowed for nitrogen loads 10 times greater than previous guidelines for N in the ANZECC Guidelines which proposed up to 0.61mg/litre whereas the NOF released before the election, allowed a N level of 6.9mg/l. The proposed bottom line was 10 times the median

“making milking easier and faster”

concentration in the lower reaches of the Waikato River – by no means a pristine stretch of river nor a river reflecting good health as a whole. This history led to a national discussion about “what is ecosystem health” and what is human health in relation to water. Which is why the Government now has a lot of work in this space. The Essential Freshwater Taskforce has been appointed by the Government to look into solutions, from the science, to the policy, to catchments, then subcatchments, and our farms. It is also focusing on where people swim, collect food, and where drinking water is sourced from and how everything is connected.

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‘This history led to a national discussion about “what is ecosystem health” and what is human health in relation to water. Which is why the Government now has a lot of work in this space.’ NZ has now moved to a discussion on values, which is far broader than economic value of water. It is important that a few single measures of water chemistry (nitrogen and phosphorus) is not the solution to a cumulative array of challenges we face. That is why we now cite health – not just for freshwater and aquifers, but also for those connected to it – humans and animals. The mix of challenges includes pathogens (bugs) in water and soil, excess nutrients in water, excess sediment in waterways, habitat loss, groundwater contamination, and a loss of the mauri of the waterways. So on that note we need to understand “health”. Health in nature means the absence of any disease or impairment, and it is also when a system is able to adequately cope with all the demands placed on it: Therefore: “A healthy ecosystem is one that is sustainable, that is, has the ability to maintain its structure (organisation) and function (vigour) over time, in the face of external stress (resilience). So four key things – sustainable, maintaining structure, vigour, resilience. This is not measured by one single metric, but by a range of metrics, the same way you would assess a freshly calved cow:–is she lively and naturally maintaining energy, alert, showing normal behaviours, carrying good condition to cope with any stress, foraging normally,

with a shiny coat? We use a range of metrics to assess health in our cows. Similarily we assess the health of our farms, observing what is required for the animals and people on the farm – is there good shade and shelter, enough feed, good access for the animals to feel comfortable and be healthy – for them to lie down, rest and are there safe places where people and animals interact (dairy shed). The nature in our streams and rivers are the same. Assessing health is about looking at both biological and non-biological factors to assess whether there is a healthy ecosystem. Biotic indicators include: species diversity – what is the composition of the community? For example, in a stream with poor health, it is likely you will only find slugs, snails and worms. But in a healthy stream there will be a range of aquatic life (community dissimilarity). For example MCI will measure the range of invertebrates and range in size and species. Other components of health in a waterbody include – presence of algae: nutrient enrichment, deforestation, cropping resulting in soil, nutrient

and pathogen runoff, and increased temperature helps algae grow (secondary production), and this takes oxygen out of the water, making it harder for aquatic species to survive. Nutrient cycling and rates of decomposition in the system are all related to the ecosystem metabolism. Non-biological indicators are also used to assess ecosystem health: These are things like nutrient concentrations, (nitrogen and phosphorus concentrations), toxic chemicals, dissolved oxygen, and deposited and suspended fine sediment, temperature, (affecting both community composition and oxygen saturation) river flow metrics (which affect ecosystem function) and fine sediment (affecting health, clarity and the ability to use the water). The other very important factor to consider – is that of human health and amenity. Is the river safe to swim in, for both contact with skin and the odd gulp of water while swimming? Is it clear enough to see your feet if swimming? Is it discoloured, are there pathogens or algae that will affect skin abrasions and health? These are all important, including the flow of the river – enough water when you need it most. Even wider, is it able to water my vegie garden, could it be drunk, is it safe to consume, directly or indirectly for example by eating shellfish or watercress that grow and live in it. Everything is connected, inter-related and working as a system. Our farms are a parallel story – people, animals and the environment are all connected (one health) and all parts need to work well, to achieve one healthy ecosystem for humans and nature – that which is maintaining structure, is vigour, resilience and protected for future generations. Dr Alison Dewes is Pamu head of environment.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

ENVIRONMENT IRRIGATION

In the land of the pivot Fertigation, or chemigation as it’s known the States, is just one of the uses for pivot irrigators in Nebraska, Keri Johnston reports.

ne thing I must give the Nebraskans is that they are forward thinking when it comes to “ag tech”. Valley Irrigation has its home in Nebraska and was the first to develop centre pivot irrigation. Our tour group was lucky enough to tour its McCook factory. A pivot can be ordered and onfarm in Nebraska ready for installation within 48 hours! Pivot irrigation is everywhere in Nebraska, and most of them are the standard length of a quarter mile since this nicely fits within the standard field size of 130 acres. Corners are very rarely irrigated. Any exceptions to this are a ‘special solution’ and New Zealand is probably the biggest customer for these. But it’s their attitude to irrigation that really impressed me. Irrigators are often referred to as “applicators” because water is only one thing that can be applied to land that way. Nutrients, pesticides and insecticides can also be applied, either individually or in combination with water. We know this as fertigation, but in the States the term chemigation is used more often. There are many advantages to fertigation. First, you can deliver small amounts of nutrient on an ‘as and when’ basis. Trials by both the University of Nebraska and the Yuma Irrigation Research Centre in Colorado have shown fertigation reduces the total amount of nitrogen that needs to be applied but can also be used to obtain a more consistent yield within a paddock or field. Environmentally, losses to the atmosphere (greenhouse gases) or through the soil (leaching) were also reduced. Research is on-going to better understand the extent of this. New technologies now also allow for variable-rate fertiliser or chemical applications as well. Fertigation is not that common here,

Husker Harvest Days, the world’s largest totally irrigated working farm show.

and there seems to be a reluctance to really embrace this technology. There seems to be a view that fertigation doesn’t apply nutrients as evenly, which is nonsense. They will be applied at the same uniformity (evenly) as the irrigator putting it on, and all irrigators should have a distribution uniformity of above 80%. Support will also be required to ensure farmers have the expertise to help them with trouble shooting and even things such as the timing of applications. Installation also appears to be a barrier. Standards will need to be developed to ensure environmental risks that could arise from fertigation are addressed. Backflow prevention will be a ‘must have’. A consistent supply of soluble or liquid fertiliser will also be required. This is the biggest challenge for NZ given fertiliser companies are more focused on ground spreading of solid fertilisers. It will take demand to drive a change in this regard, but with a real need to be innovative when it comes to nutrient management and reducing our environmental footprint, hopefully this will come sooner rather than later. We were also lucky enough to attend the Husker Harvest Days in Grand Island, Nebraska. This is the world’s largest totally

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

irrigated working farm show. For three days each year, the working farm is transformed with more than 600 exhibitors and live demonstrations. The exhibition site is so large you can hire a golf cart for the day to get around to save the legs. This really showcased the Nebraskans’ love affair with ‘ag tech’, and how willing they were to use technology to do things better – not just from an environmental point of view, but using less of everything (water, nutrients and chemicals) to produce the same yields or more. The other factor that forms part of this equation is GMO. They use it. Most farmers we spoke to were growing GM corn and were focused on species that were more naturally resistant to disease and pests and produced high yields. This aligned with their thinking of “less is more” and GMOs therefore were definitely part of the overall solution to the issues they faced (which are not a long way from the issues we face). Perhaps it is time we had a mature conversation about the use of GMOs. Keri Johnston is a natural resources engineer with Irricon Resource Solutions. First published in Country-Wide magazine, December 2018 81

STOCK ONFARM

Ahead with technology A cow chewing her cud has long been an indicator of cow health. Anne Hardie reports how monitoring collars can help show how a cow’s ruminations are affected by the state of their health.

nformation from cow monitoring collars shows Adam McManaway and Kirsten Daymond the changes in ruminations and activity of every cow in their 465-cow herd so they know the state of their health long before an issue is picked up by eye. Whether it’s calving, cycling, lameness, mastitis or anything that interrupts their usual grazing pattern, it will affect rumination and activity which is revealed on the computer graphs, or in acute situations prompt a notification from the phone app.

The couple are 50:50 sharemilkers 15 minutes north of Murchison in the Top of the South and were a demonstration farm for the Allflex Livestock Intelligence collars for the first couple of years. It was a convincing experiment for them and when it finished a year ago, they invested in collars for the entire herd which was a big financial commitment for a couple who had just taken on their first sharemilking contract. Information from the collars tells them the optimum time to inseminate each cow which means more chance of getting her in calf earlier. If a cow has a stone in her

foot, it will affect her ruminations and activity which will prompt the programme to draft her off before she is obviously lame and the problem can be remedied before it worsens. And it will reveal how much each cow is producing in comparison with how much she is ruminating. It all revolves around the time spent ruminating which is an indicator of cow wellbeing and health. It’s the process which has the cow regurgitating previously eaten food and masticates it a second time – chewing their cud. A cow will typically ruminate eight to nine hours a day and a drop in the amount of time she ruminates

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Adam now has more information on how each cow is performing.

FARM FACTS: Farm owners: Dave and Jane Field Sharemilkers: Adam and Kirsten McManaway Location: Murchison, Top of the South Milking platform: 135ha Herd: 465 crossbred cows indicates something is happening. A big change means it’s something quite crucial which is why a cow chewing her cud has long been an indicator of cow health. It’s a lot clearer on a graph though which shows just how much those ruminations are changing and when. An increasing number of herds in the country are now using collars or similar technology to gather information and Adam and Kirsten say it is the way of the future for dairy farming. Their system has recently been upgraded with improved algorithms and they will have the ability to further upgrade when necessary.

The couple have farmed as far south as Whataroa in South Westland and north to the plains around Lake Wairarapa before arriving at Murchison for a manager’s job initially on Dave and Jane Field’s farm who had moved to Tasmania for a larger dairying enterprise. Dave and Jane gave them the opportunity to start buying cows and leasing them back, which enabled them to build up enough equity to take on the 50:50 sharemilking job last year. Adam says they have been lucky to have supportive farm owners who helped them into their 50:50 sharemilking contract and allowed

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Production: 475kg MS/cow on system 2/3 Technology: SCR Allflex collars for rumination and activity them to be a demonstration farm for the collars. At Murchison, they farm both sides of the highway where up to 7,000 cars pass through each day in the middle of summer and an underpass connects the farming operation. On 135 effective hectares they milk 465 crossbred cows with a target this season of 215,000kg milksolids (MS) and 475kg MS/cow. Their top production 83

so far has been 214,000kg MS and they aim to stay within the top 10% for milk production in the Tasman region. Cows are milked twice a day through to March, when they drop to three-in-two milkings and then once-a-day for the last month to dry off – all depending on the season and supplements. They operate a system three on the DairyNZ production system, with 300 tonnes of palm kernel – PK20 which has molasses as well – added to the 500 bales of balage made on the 75ha support block they lease nearby. It grazes the young stock and winters the cows as well. On the milking platform, K-line irrigation waters 120ha from the Buller River which borders one side of the long, narrow farm. The collars will read up to 800 metres from the shed and sometimes stretch out to a kilometre, but even when they are out of range, they still collect information and that is downloaded when they get within range on their way to the dairy for milking. “As long as the drafting gate gets that information while they’re being milked it will draft them in the different directions they need to go,” Adam explains. “At the moment, (beginning November) we draft cows on heat one way and cows with health issues the other way. It will detect all those problems itself and it will draft on its own. So in the morning I’ll go down to the cow shed after they’re milked and the cows in the left pen will be on heat and the cows in the right pen will either have mastitis or lameness. And no-one will have drafted any cows. It will have just done it itself. It’s quite impressive.” An antenna on the roof of the house enables internet to be sent down to an antenna on the workshop roof beside the dairy, with a few wifi boosters around to get as much coverage as possible. A barcode on the collar is in the system and her information is downloaded when she is within range into their Heatime Pro system, and if needed, automatically drafted into a separate mob. Looking at a cows’ graph, it shows a substantial change in ruminations and activity at calving, then the effect of recovering from calving in the colostrum herd, the change to the main herd, the first cycle and then the second cycle in time to capture the optimum time to inseminate her. “If we’d relied on tail paint to inseminate her, we may have missed the crucial time, wasted $28 on insemination and she wouldn’t be in calf. When a cow 84

Information from the collars is downloaded when the cow comes into range.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

‘So in the morning I’ll go down to the cow shed after they’re milked and the cows in the left pen will be on heat and the cows in the right pen will either have mastitis or lameness. And no-one will have drafted any cows. It will have just done it itself.’ is on heat, she will have 90% more activity on the day she is cycling than any other day of the month and her rumination drops 30%. It’s just about identical with every single cow. So she will ruminate significantly less and walk significantly more around the paddock. “All this is, is a better tool to be more accurate to draft the correct cow to be inseminated and it increases your conception rate because the cows you are

“We had no human interaction with the cows, yet we knew every single thing that they were doing every day.” The cost of the collars is offset by getting cows in calf and reducing health-related problems that reduce the cow’s time in the milking herd, but also through less staff in the dairy through mating. Before they invested in the collars, Adam says they would have had two people in the dairy for six to eight weeks through mating,

Top right: Sharemilker Adam McManaway has put monitoring collars on all of the 465-cow herd.

checking tail paint and manually drafting them, which cost between $100 and $150 per day. Plus, the computer is doing a better job. “So when you spread the costs over the life span of a cow, it more than pays for itself. And we should be able to stretch the life of a cow out a bit longer because we’re going to have more chance of keeping her in calf. And if she has any health issues, you’re on top of it before even mating time starts and have her in good healthy condition to be able to get in calf.” Such as lameness, which still occurs, but because they are on to it earlier, there’s less damage and no infection, so no need for antibiotics and the cow is quickly back with the herd. Or at calving, when a problem after calving is getting pretty serious by the time an infection occurs and becomes obvious – or a second calf hasn’t been delivered, so catching it early saves money and maintains production. At calving it also sends out the text alert when a cow is calving and even though they are checking the herd regularly, it’s alerting them when they are not in the paddock. When culling, Adam looks at the information for every cow to see how much she is ruminating and then looks at the herd test result to see how much she is actually producing. It’s clear which are the most efficient cows. “You’ll find a lot of them eat just as much, produce bugger all and you will pick it up on the herd test, but you won’t realise how much they’re ruminating because the herd test won’t tell you that.”

Bottom: Adam can view the health of the cows on the computer graphs.

inseminating are actually at that optimum ovulation time to conceive. I’ll look through the list every morning on the computer and if it says there’s 19 cows on heat, I’ll look at all their graphs to make sure it’s close to 100% (heat index rating) and it will tell you when her last cycle was.” During the demonstration period they also used collars on the carryover cows which are run on 30ha of rough hills at the back of the milking platform. Adam says they never brought the cows down off the hills and never put tail paint on them, yet the collars recorded when they cycled and when they got in calf. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

ABOVE: The receivers on the roof enable information to be downloaded from the collars. RIGHT: Cows can be automatically drafted from collar information.

Adam says scales could be added at the exit race to record cow weight and the system could be linked to milk meters to show how much milk each cow is producing at each milking. That would add weight to the data recorded, alongside rumination and activity. As sharemilkers, he says that is not an option as it would mean spending money to upgrade the dairy. You don’t have to be a whizz on the computer to use the collars and interpret the information and he says that if you can send a text message, you can probably figure it out. “As long as you’re willing to put the data into the system it will work for you. But if you are one of those people what struggle with putting data into Minda, then it’s not the system for you. Farmers also need to be willing to be educated, Kirsten adds, and scares such as Mycoplasma bovis have shown the benefits of technology and recording. Kirsten works a couple of shifts as a nurse in nearby Murchison which enables flexibility around two-year-old Patrick. She’s been lucky to find a job as a nurse in a small community where jobs are scarce. When they arrived in Murchison, she spent 12 hours a week driving back and forth to Nelson for work but the arrival of Paddy meant that couldn’t go on. Finding staff for the farm is also a challenge in a small community. Through 86

calving, there was just Adam and full-time staffer Lorraine Miller which stretched them both. It’s isolated as a community, but has thousands of people driving through the middle of the farm every day and Adam says they let them know when they think something is wrong. “Especially at calving time you’ll get a

couple of people every day coming in and saying you’ve got a dead cow down there. And we’ll say, well actually she’s calving – we’ve just been down to check two minutes ago.” Plus, with the collars, they know exactly what each cow is doing as well as her health, whether they are in the paddock or not.

An underpass connects the farm that straddles the highway. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

STOCK VET VOICE

Deciding to go once-a-day Vet Katie Denholm reflects on once-a-day milking as a management tool and its impacts on somatic cells and body condition.

ecember often marks a ‘turning If the decision to go on to OAD is made point’ in the dairy season, with early enough, the cows are less likely to the bulk of mating complete drop in production as dramatically, which and Christmas fast approaching. should also have less an effect on BTSCC. Decisions about milking once-a-day Identifying “problem” cows early in the (OAD) usually centre on work/life balance season is a good place to start before you (reduced labour costs and workloads); feed move on to OAD. conservation and reducing the requirement Most farms that herd test will have a for bought-in test about November supplement feed. or December. This Once-a-day milking provides invaluable Identifying may also be used as a information to identify “problem” cows management tool to ‘infected’ cows (somatic early in the season conserve cow condition cell counts of >200 000 is a good place to and improve animal cells for cows and >150 start before you welfare by reducing 000 cells for heifers). move on to OAD. the requirement for In the absence of herd walking long distances test information, rapid in the heat of summer. mastitis test (RMT) When the herd goes on OAD, the bulk paddles may prove useful to identify tank somatic cell count (BTSCC) will problem cows. usually double (in the short term) during You could choose to use the RMT paddle the transition; before settling down to run on the whole herd, or target older cows or at about 20-30% higher than before going cows with previous clinical mastitis cases. OAD. What should you do with high cell Clinical cases may also flare up during count cows? this process. In general, it is a far smoother Options for these cows include: process if the transition happens while • Ignore them there is still feed ahead of the cows, and • Dry them off before cow production drops too low. • Continue to run high SCC cows in a It is quite common for herds to separate herd on twice a day (TAD) transition on to OAD three to four weeks milking too late, by which stage feed quantity • Milk culture and treat based on and quality has declined, and low milk microbiology results volumes predispose high bulk tank somatic • Milk culture and cull cell counts. • Cull. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Economic models prove that blanket treatment of high cell count cows is not recommended. Selective treatment based on milk culture results is the smarter and more economical way forward. Reducing stocking rate may be a priority, especially if feed is short. If culling is part of your management strategy, then making smart culling decisions and culling the right cows is important. Compile a culling list of ‘repeat offender’ high somatic cell count and clinical mastitis cows. Older animals and those with later calving dates should also be considered. Milk cultures can also help with culling decisions, as some cows may have mastitis bugs which are more difficult to treat and cure. Results from a DairyNZ trial, showed that putting cows on OAD milking past their peak production (when cows had already delivered about two thirds of their total season yield) had very little effect on overall season production. In this same trial, there were clear advantages of OAD milking on overall body condition score, with cows in a better energetic state that those milking TAD. Once a day milking should not affect milk production in future lactations, but farmers are likely to reap the productive benefits of better body condition score at calving. The decision to forgo some milk production can be rationalised by cows in better condition in spring, but the decision to go on to OAD milking should not be left too late. Once feed becomes in short supply and milk yields drop, somatic cell count grading becomes more commonplace and you may not reap the benefits of going on to OAD. 87

ONFARM

Michael McCombs has had success by putting himself out there in the NZ Dairy Industry Awards, FMG Young Farmer of the Year contest and the Young Farmers Excellence Awards just by doing his thing and loving the journey along the way. Samantha Tennent reports. Photos: Brad Hanson. geography class trip sealed the deal for Michael McCombs – he knew dairy farming was where he wanted to be. He grew up in Upper Hutt, attending Upper Hutt College and from a young age had always planned to become a farmer. It was a 220-cow farm near Carterton he’d visited with school and thought to himself he’d love to work there. The following summer holidays he did. It was a once-a-day herd and the owner, Dave Hodder, recommended Michael look at the Taratahi training farm. “I wasn’t enjoying school and was looking at my options. I landed a spot on the training farm so left school at the end of year 11.” Michael, now 26, recalls the application process. He was on an intake with 60 students. The training ran over 33 weeks and was on a rotation system with four days of practical and one of theory each week, rotating every five 88

weeks across the different modules. This was across 2009 and 2010 and he completed Level two, three and four in Agriculture with NZQA. “I loved what we were doing during training, it was definitely a better fit for me than being in school. “I also worked for the neighbouring farms most weekends relief milking and tractor driving.” Once he’d completed his training Michael landed a role on a 2500-cow farm in Martinborough. He was there for two years and moved from farm assistant to herd manager. He really enjoyed this farm and the people he worked for but after two years he took an opportunity to muster cattle in Australia’s Northern Territory. “It was an awesome experience. I was there for six months and had a go at camp drafting, which is like barrel racing but you chase a beast in a figure eight.

“I spent a lot of time amongst the local community while I was there and even worked in a pub for the last month before heading home.” After the break Michael was questioning if he wanted to continue dairy farming so he did a docking season on Lagoon Hill Station. He then spent the summer shifting irrigation back on the training farm. He decided he would get back into the dairy

Dairy Exporter | www.nzfarmlife.co.nz | September 2018

shed, this time on the split-calving training farm in Taranaki. Not long after moving to Taranaki Michael entered the NZ Dairy Industry Awards and took out the Taranaki Trainee of the Year title. “I entered because I wanted to benchmark myself, gain experience and meet people, winning was awesome!“ Winners from each section at regional level go on to the national final for the NZ Dairy Industry Awards to seek the national title. “The trainee finalists go on a study tour during the national final week. Ours was hosted by Jo Greaves and Greg Maughan. It was great, I really appreciated it.” Michael still uses the iPad he won in the contest, claiming it’s ‘Bro-track,’ he’s mounted in the shed with the MINDA app loaded and he pulls the leaver to draft. “Not quite automated drafting but it does the job well. Cell phone batteries don’t last long enough if you’re using lots of apps throughout the day.” The win opened more opportunities for Michael and he moved into a 2IC role next before heading up to his current farm in Kimbolton. McDougall Agriculture had just purchased the property and hired Michael to manage it. He’s now in his second season contract milking for the McDougalls. “I have moved a lot but each time I was looking for further opportunity, to climb that responsibility ladder.” The Kimbolton role came with numerous challenges, one being a new set-up with a new herd. It was another new farm for Michael to learn but he put his head down and plugged away, he never stops asking questions and aims for the most efficient ways to operate. He regularly attends DairyNZ discussion groups and finds a lot of value bouncing ideas off other farmers. Michael tries to get that work-life balance by having a few off-farm commitments. He was inspired by a Country Calendar episode back in 2015 and took up beekeeping. “Mum and Dad bought me two beehives for my birthday. Being amateurs we didn’t realise we were only buying frames, with the queens and bees. I needed to sort my own boxes.” Michael turned up to collect his hives and the guy ended up lending him some boxes for a couple of weeks till he got himself sorted. “I bought a book about bee keeping and winged the rest from there.” He recommends learning what diseases in hives looks like to anyone wanting to get involved in bees. Disease can destroy hives quickly. He’s leaned on some experienced guys to come out every six months and inspect his hives for him.

“It’s definitely worth getting some experts in, I’ve dropped back to once-a-year checks now but I still quiz them while they’re out, absorbing as much info as I can.” The hives have moved farm with him each time, apart from a stint they did in Waikanae on his grandparent’s lifestyle block. “It started out as a hobby, I had two hives and they were quite successful and I was enjoying looking after them. I do struggle though, it’s something that needs a lot of time which I don’t have.” Down to four hives now, he did have 21 working for a period. He sells his honey locally and gifts some to family. “It’s a lot of trial and error, trying to breed hives and produce honey to make a bit of money. If I had more time I would get right into it, it’s good to have an interest outside of milking though.” Michael gets further variety from his involvement with the local volunteer fire brigade. He’s found it a great way to get involved in the local community and meet people when he’s new to an area. “When you’re a young single person moving to an area, getting involved in the fire brigade is worthwhile as they are generally knowledgeable, helpful people.” He has training on Tuesdays and attends as many call outs as he can. He believes being involved in the brigade adds a lot to his farming skills too as well as being useful for the local

Dairy Exporter | www.nzfarmlife.co.nz | September 2018

community. This season he’s got extra support having an employee join the team, being on his own on the farm proving difficult to juggle everyday tasks and his commitments off farm. He’s also found himself a nice young lady, Rochelle Bailey, a school teacher from Feilding, which makes the juggle easier. “She was impressed when I introduced myself when we met in Wellington for the FMG Young Farmer of the Year Taranaki Manawatu Regional Final back in February.” This proves Michael’s philosophy having manners gets you places in life. Michael has competed in the Young Farmers contest many times and he’s been an integral member of his local club, Marton. He’s just stepped off committee after spending the past year as chair and has held a variety of roles. He was recently announced as a winner for the Young Farmers Excellence Awards, with the organisation recognising the value of Michael’s involvement in the volunteer fire brigade. “It was pretty cool to be recognised, I don’t consider myself to be outstanding but I do put a lot of time into the things I am involved with.” Michael hasn’t planned a detailed future but he’s always ready for opportunities. He’s enjoyed progressing in the industry, all the learning involved and the great contacts he’s made. He’s happy he stuck with dairy farming but he has enjoyed the varied career path he’s taken, who knows where it’ll take him next. 89

RESEARCH

f o e v o l e h t For cows and science

Words by Anne Lee

hiannon Handcock has always pursued the things she loves and for her that’s been cows and science. The 25-year-old PhD student is about to submit her research project looking at growth patterns and liveweight effects on milk production and fertility in

dairy heifers. It’s been three years in the making and has meant hundreds of hours spent analysing more than a million data points but it’s never felt like a chore. “When I started out I didn’t really expect to get so involved in the statistics and maths side of it but what I’ve found can be just so interesting I can spend hours just playing in the data,” she says. Growing up around the corner from the Auckland Zoo she always had a love of animals and when her family moved to a lifestyle block near Pukekohe the first thing she did was to beg her parents for a Jersey calf. “I showed them at A and P shows and that’s where I got to meet dairy farmers and understand more about what they did. “When it came time to choose what to do when I left school I knew I loved cows and loved science. So I decided to combine the two and study the science of cows.” In 2015, after completing a Bachelor of Science in agriculture and animal science at Massey University and an honours year looking into the use of lucerne and herb crops for heifers during a drought, she spent close to a year working as an intern for LIC. That piqued her interest in looking at what lessons could be learnt from the myriad of data stored within MINDA and with the help of a scholarship from Massey University she was able to take on a PhD study at Massey University with supervisors from Massey University, Lincoln University and LIC all collaborating to help her on her way. Rhiannon used the liveweight, production and reproduction records from 189,936 spring born heifers born from 2006 -2013. All up there were more than 1.65m liveweight data records with weights recorded for the heifers between birth and first calving. She identified that breeds do grow differently with the Holstein Friesian heifers having more rapid declines in growth rates through their first and second winters but steeper increases through spring and summer compared with Jersey and crossbreeds. When Rhiannon went on to look at milk production data for the first lactation she found that for each breed, those animals that were heaviest as heifers produced more milk. There was no maximum weight in terms of milk production effect so there was no such thing as too heavy when it came to milk production. Rhiannon’s analysis found there was a linear relationship between liveweight at three months of age and milk production. As the animals got older the relationship between the liveweights at each age became more curvilinear. The data showed just how important it was to rear calves well from the outset. 90

For each age group from six months right through to 21 months the greatest milk production response to an increase in live weight was from the lightest animals in the group. “It shows how important it is to focus on the tail-end heifers and look at the range not just the average,” she says. Rhiannon found the same effects when she used milk production data for three seasons as well. All heifers were included in the milk production assessments regardless of how many calvings they had.

Effects on reproduction

Rhiannon looked at the effect of live weight at 15-months on the probability of calving as a two, three and four-year-old and found it increased with liveweight. But she found there was a liveweight point beyond which each breed showed a decline in the probability of calving for each year. “They were very heavy weights though and for most people that’s not going to be an issue. For 15-month heifers the decline didn’t start till they were heavier than 400kg for instance (in the Holstein-Friesian-Jersey crossbred group).” The 15-month average live weight for that group was 300kg. Although her work is about associations not cause and effect she’s hypothesised that the very heavy animals, producing a high volume of milk may be in a negative energy balance longer after calving making it more difficult to get in calf. “For most farmers I think the message is to focus on getting the lighter animals up to target weights because there are really significant increases in heifers having a first and subsequent calvings the closer they are to target weight.” Even if lighter heifers get in calf first time around their chances of having a second and third calving decline even further the lighter they are. Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Effect of live weight on milk production

Above: Rhiannon Handcock – more than 1.65 million live weight data records analysed. Left: Rhiannon Handcock – getting heifers up to target weights boosts milk production and means they’re more likely to get back in-calf.

Rhiannon had hoped to look at the effect on six-week-in-calf rate but there wasn’t enough data recorded so she took the next best thing – calving rate and looked at the proportion of heifers calved in the first three weeks from planned start of calving. Again, there was a significant benefit in getting heifers heavier at 15-months particularly for the first calving but again at the very heavy end there was a decline in three-week calving rate. Rhiannon’s results showed less of an effect on second and third calvings but those subsequent calvings were adjusted in her statistical model to assume they had all calved on the same day at first calving. Rhiannon’s PhD wasn’t all based on data associations though. In 2015 she carried out an experiment at Massey University on 2015-born heifers comparing one group of 55 animals that were grown to target on a straight line trajectory from six through to 15 months and another group of 55 that were grown slower from six to 12 months of age (first winter). But as they came into spring they were fed so they caught up to their counterparts at the 15-month target. The study was designed to compare heifers grown to the industry target trajectory with the seasonal growth commonly observed in industry. They were weighed weekly and both groups fed kale, meal and balage when pasture availability was insufficient to maintain heifer growth rates. Rhiannon found the ones fed on the straight trajectory achieved puberty a month earlier than the seasonal group but because they were older when they reached puberty the seasonal group was 10 kg heavier on average at puberty. More of the animals (75%) grown to target had three cycles before mating compared with 40% of the slow then fast growth rate animals but in the end there was no difference in pregnancy rates. “It shows it’s so important to achieve the target weight at mating, and within reason, less important how we get there.” Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Effect of live weight on probability of calving

Effect of live weight on probability of calving in first three weeks

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Learning to live with Paris

DAIRY 101 CLIMATE CHANGE

Whatever happens with climate change, Karen Trebilcock reckons there are good reasons not to fill our atmosphere with crap of any sort. bout a decade ago, the University of Otago hosted a researcher from Anchorage, Alaska. He talked about polar bears and climate change at a public lecture which was part of the university’s Hands-On Science programme for secondary school students so the theatre was full of excited teens, along with people keen to hear what it could mean for those living in Dunedin. In the question time, one teenager asked whether her parents should destock their farm because of the greenhouse gases created by their livestock. The researcher was horrified. “No, you can’t do that. You need to increase production to make up for the areas that are going to be turned into deserts by global warming. This country needs to grow as much food as it can to feed the world.” I remember the face of the teen. She was totally confused. Ten years on and polar bears in Alaska are still facing shrinking ice floes and we’re still arguing whether climate change is real and happening and what we should do about it. So what do dairy farmers need to know? First, climate change (whether you believe in it or not) will affect how we farm, the taxes we pay and the ways we stock our farms. Whether we will have any say in this, individually, as farmers, and as a country, is doubtful. The Paris Agreement, ratified by New

Zealand on October 4, 2016, means we and almost of all of the rest of the world (except for the United States – this is the one Donald Trump said no to) will seek to limit temperature increases in this century to below 2C and encourage initiatives that bring the increase down to 1.5C or lower. To limit temperature increases it is generally accepted we have to lower the amount of greenhouse gasses being emitted into the atmosphere so all countries participating in the Paris Agreement are expected to report regularly on their efforts to do so. The greenhouse gasses are carbon dioxide, methane, nitrous oxide, ozone and fluorocarbons. In NZ, the government produces an annual National Inventory Report summarising greenhouse gas emissions which are categorised into five sectors – agriculture, energy, industrial processes, waste, and land use change and forestry. Agriculture is included because cows and sheep, like all mammals, belch and fart methane and their urine and faeces create nitrous oxide when broken down by microbes in the soil (part of the nitrogen cycle). That includes the buffalo living in Yellowstone National Park, the elephants in sub-Saharan Africa and, of course, all of our animals too. However, although our animal population for our landmass is relatively low (no herds of wildebeest escaping marauding lions here), populations endemic to a country are not included in the Paris Agreement – just farmed animals.

And it doesn’t differentiate between gases created by burning fossil fuels and gases created by biological processes such as a cow’s rumen bacteria creating methane and soil microbes turning their urine and dung into nitrous oxide. A molecule of CH4 is a molecule of CH4 however it got into the atmosphere. This gives NZ a unique greenhouse gas profile because our agricultural sector is a significant part of what we do and most of our electrical generation comes from hydro. Because of this, agricultural emissions make up almost half of NZ emissions, while in other developed countries, agriculture usually makes up about 11%. So if we are to cut our emissions, as we have said we would when we ratified the Paris Agreement, it’s agriculture that is going to get almost half of the government’s attention. Some people (farmers) would also claim it’s no doubt easier for the government to destock farms than stop Aucklanders driving over the harbour bridge. However, as the researcher from Anchorage pointed out, agriculture is needed to feed people and also, in NZ, dairy is our number one overseas earner so it’s not that easy. There has been lots of research into cows which could produce less greenhouse gasses but nothing so far has been found that is the so-called magic bullet (apart from unmagic ones) and the Government hasn’t yet decided how it’s going to make farmers reduce emissions.

Barley ripens near Dundee in Scotland on what the British media dubbed “Furnace Friday” when temperatures got to a record 30 degrees Celsius there in July this year.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

RAMOS Mowers Cutting power without compromise

Having to feed the world is not going to cut it as a reason to renege on our obligations to cut greenhouse gas emissions.

What I do know is when it comes to science coupled with public hysteria, we only have to look to the Y2K bug to have a good laugh at ourselves. For those too young to remember Y2K, Google it. And for the record we all partied on New Year’s Eve in 1999 like there would be no tomorrow but all that happened was we woke up with hangovers. Our toasters (and everything else) still worked. I’m sure, after walking around a few European cities this past Northern summer when they were all shouting about their heat wave records, that if everyone turned off their air conditioning and went to the beach instead, temperatures would have dropped at least a couple of degrees. If global warming is really happening, I would like to think we are intelligent enough to figure out how to live with it, protect our wildlife and our people. Even in disaster movies, someone always survives. And what’s wrong with a few more days at the beach in the south?

SANOS Tedders Tried and true, big in action

But all of that type of thinking doesn’t really matter. We signed the Paris Agreement with the rest of the world. Now we have to meet our obligations. And using the argument, again from our polar bear researcher, that we need to feed the world isn’t going to work. Only 3% of global milk production is ours, our meat and grain even less. We’re not going to save China, Mexico or Russia or any other country from starvation. And don’t start talking about food wars. All food shortages do in the modern world is make the poor poorer and the rich more keen to sit in darkened rooms with the controls of armed drones at their fingertips. If we forget about the endless arguments, the name-calling, the politics, the billions spent on research, maybe, at the very least, we should realise we actually don’t need a good reason to stop putting more crap, of any sort, into our atmosphere.

JURAS Rakes Always ready, always reliable

www.fella.co.nz 94

18FL002d

There has been talk of taxes (yep – the fart tax), reducing stocking rates, using different feeds but all have consequences that may or may not reduce the country’s, or the world’s, overall emissions. It may also affect our wealth as a nation. But what’s the point of being a fairly economically comfortable little country on the edge of the South Pacific if global warming is turning our world into a slightly colder version of hell? Parts of the world are undeniably hotter than they were 50 years ago. Whether they are hotter than they were 1000 years ago, or 50,000 years ago it’s hard to say. Ice ages come and go. But with the world hotter than it was only 50 years ago, it makes sense scientifically that there are more volatile weather events (hot air holds more water vapour) than there were back then. Certainly the media is making sure we all believe it. But storms come and go. When I first moved to Westport in 1988, three floods in one year covered the farm where today’s Agriculture Minister Damien O’Connor milked cows. Paddocks were silted up and had to be regrassed. In the 30 years since there have been a few more floods but never three in one year. For many years there were none. Would we have said back in 1988 the Westport floods were caused by global warming? We didn’t even know about global warming then. Maybe floods are the norm in the huge Buller River catchment and the lack of them since is due to climate change?

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Optimised crop flow from sprung loaded knives ensure the cleanest of cuts for the best re-growth, resulting in higher yielding pastures and increased quality!

Tri-Drive gear tooth cutterbar withstands impacts and provides reduced wear. 4x stronger than single tooth gear-drives!

Quick-Change reversible knives â&#x20AC;&#x201C; Sprung loaded for a cleaner cutting finish.

NATIONWIDE DISTRIBUTION NETWORK KAITAIA Kaitaia Tractors 09 408 0670 WHANGAREI Bryant Tractors 09 438 1319 DARGAVILLE FarmShop 2017 Ltd 0800 002209 SILVERDALE AGrowQuip NZ Ltd 09 427 9137 PUKEKOHE AGrowQuip NZ Ltd 09 237 0043 MORRINSVILLE Piako Tractors 07 889 7055 HAMILTON AGrowQuip NZ Ltd 07 847 0425 CAMBRIDGE AGrowQuip NZ Ltd 07 827 5184 ROTORUA Piako Tractors Ltd 07 345 8560 STRATFORD FeildTorque Taranaki 06 765 8643 GISBORNE Stevenson and Taylor 06 858 6041 WAIPUKURAU Stevenson and Taylor 06 858 6041 DANNEVIRKE Lancaster Tractors 06 374 7731

FEILDING TRC Tractors 06 323 4117 MASTERTON Wairarapa Machinery Services 06 377 3009 NELSON Drummond and Etheridge 03 543 8041 BLENHEIM Drummond and Etheridge 03 579 1111 KAIKOURA Drummond and Etheridge 03 319 7119 GREYMOUTH Drummond and Etheridge 03 768 5116 CHRISTCHURCH Drummond and Etheridge 03 349 4883 ASHBURTON Drummond and Etheridge 03 307 9911 TIMARU Drummond and Etheridge 03 687 4005 OAMARU Drummond and Etheridge 03 437 1111 MOSGIEL JJ Limited 03 489 8199 GORE JJ Limited 03 208 9370 INVERCARGILL JJ Limited 03 211 0013

* Normal lending criteria and special conditions apply.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

www.originagroup.co.nz

FARM GEAR MOWERS

One man went to mow… A wide range of mowers are available to New Zealand farmers. Tim McVeagh checks out some of the offerings. he New Zealand dairy farmer has an impressive range of mowers to pick from, with Krone alone having 35 models on their website. With a range of features varying between models, there’s a fair bit to take in. Working widths range from two to 10 metres. They can be drum or disc mowers. They can be front, rear, side-mounted, or a combination of these, while the bigger units tend to be trailed, or even selfpropelled. A good place to start the selection process, as always, is to define the needs, wants, and limitations, specifically: • What crops are to be mown? Will this be limited to pasture, or include lucerne or other crops? • What area will be mown each year? • Will the mower be used for topping? • What horsepower tractor will be used? • Is a conditioner needed?

The ideal mower will: • be easily attached and removed, • provide a clean cut at the range of heights required, without scalping or striping, • top as well as mow, as required, • be easy and safe to operate, • have low maintenance requirements, • have reasonable horsepower requirements, 96

• allow spreading or windrowing of pasture if needed, • have mechanisms to prevent damage when an obstacle like a post is hit, or when an object like a rock or wire is picked up, • come with a reasonable warranty, spare parts availability, after sales service. • come at a reasonable cost.

The Basics: The basic differences between mowers are drum and disc; mounting, (front, rear, side, trailed, self-propelled); and whether fitted with a conditioner. Drum and disc: Drum mowers have two to four belt or shaft-driven rotors, each fitted with knives. Their proponents say drum mowers are equally suited to mowing or topping, are less complex, have lower horsepower requirements, and can to some extent windrow the crop. Disc mowers have a series of discs mounted on a cutter bar, each with a pair of knives. They are usually driven by a series of gears within the cutter bar. The cutter bar may be shaft or belt-driven. Disc mowers can be compact, angular or spur drive in the bar. Their proponents claim a cleaner cut so better pasture recovery, less striping, and wider and so more efficient mowers are possible. Most hay mowers available in NZ now are disc mowers. They can be used for topping, some by fitting topping skids.

Mounting: Most mowers bought by dairy farmers are side-mounted on the three-point linkage. Front-mounted units are usually used in conjunction with a pair of rear-mounted mowers to give maximum mowing width. Some smaller units are rearmounted, (directly behind the tractor) with their advocates saying they are safer under some conditions, easier to manoeuvre, and quicker when switching between mowing and travelling. Trailed and self-propelled mowers are more commonly bought by contractors or those doing a lot of mowing. Conditioners: Conditioning helps dry out the crop, so is common where drying time is more critical. Models like some in the Massey Ferguson range can be retrofitted with a tine or roller conditioner. Some can be set to send the crop into

Most hay mowers bought by dairy farmers are disc mowers like this Kverneland model. Kverneland claim the round discs are less susceptible to rock jambs.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

Left: The Maxam 3300IV is the only drum mower in the list of models suggested for larger dairy farms. The twin wilters spread the pasture out for quicker drying. Maxam claim their mowers fitted with the Wilter Spreader are the only mowers that can cut, condition, and spread pasture in one pass without driving on the cut crop. (Photo supplied by Farmgear Ltd).

a windrow. Running a mower with a conditioner requires more power. Tine conditioners have vee-shaped tines in a spiral pattern, are fairly aggressive, and are more suitable for grass crops. Conditioning intensity for different crops is set by a baffle plate. Tines can be either steel or nylon, with steel tines lasting longer but taking a little more horsepower due to their weight. Flexible mounting of steel tines reduces damage by objects like stones. Roller conditioners crush the stalks and expose the pith so it can dry out faster, but leave as much leaf intact as possible. They have either steel, polyurethane, or rubber rollers. Rubber or polyurethane rollers are suitable for leafy crops like lucerne and clover. Steel rollers are more suitable for thick-stemmed crops, and last longer than rubber ones. Conditioner speed may

be adjustable to cater for different crops. An adjustable spring loading mechanism can vary the conditioning intensity, and protect the rollers from foreign objects. Maxam claim their wilter spreaders allow faster drying of crops than conditioners.

hr is quoted by some suppliers but can vary considerably with crop weight, type, and moisture content. Figures quoted in brochures should be based on objective data. In other cases an estimate has been made for the mowing capacities quoted in Table 1 and 2. The best advice in buying a mower would be to get an objective figure for any situation based on trial work or experience. Topping: Topping may mean fitting topping skids, or adjusting the mower height. Pre-grazing topping is carried out by some farmers but all DairyNZ’s research indicates that there is no benefit where pasture management, (residual left after grazing) is sound, and there is a cost in terms of time and running costs. “A refined hay mower used for topping gets a heluva hard time due the amount of shit they thrash through, along with stones,” Bruce Chowen of Central Contracting says. “They are all right for the first couple of years and then the rot sets in. A specialist topping mower is worth consideration in this case”. Spreading: As an alternative to dropping the crop as it is mown, spreading will reduce the drying time. Adjustable

Further features to consider: Horsepower requirement for the tractor: Most quote tractor power requirement, (in horsepower), with a few suppliers quoting PTO power requirement. These are significantly different; for example the Kuhn GMD 4411 has a tractor power requirement of 61hp, (45kW); and a PTO power requirement of 45hp, (34kW). Hydraulic requirements for the tractor: This starts with basic models requiring one single- acting hydraulic coupling. Working width and mowing width. Either or both of these are quoted for mowers. Centre-mounted pivot mowers: The attachment point for these mowers is at the centre of the mower, rather than at the near end. This allows a smoother ride and so a more consistent mowing pattern. Capacity: Mowing capacity in ha/

Table 1: Summary of Specifications Provided by Suppliers for Mowers Commonly Recommended for Smaller Dairy Farms. Brand Claas Fella Fransgard Krone Kuhn Kverneland Malone Massey Ferguson Maxam Pottinger Samasz Sitrex

Model

Type; (Discs / Drums); Mounting

Conditioner

Tractor kW

Width, (m)

Capacity (ha/hr)

$+ GST

Made In

See www.

DISCO 3150

Disc; (7); 3PL side mounted

40 (55 hp)

3; working

3-5

20000

Germany

claasharvestcentre.com

RADON 225

Drum; (2); 3pl side mounted

2.2; working

No data

13870

Germany

norwood.co.nz

K280

Disc; (7); 3PL side mounted

2.8; working

No data

14990

Denmark

forestquip.co.nz

ActiveMow R280

Disc; (7), 3PL side mounted

2.83; working

2.5 – 3

18850

Germany

tulloch.nz

GMD 240 FF

Disc; (6); 3PL side mounted

2.4,cutting

Approx 3.2

15900

France

kuhn.co.nz

2632M

Disc; (8); 3PL side mounted

40*

3.16; working

Up to 5

No data

Denmark

kverneland. co.nz

Procut 800

Disc; (6); 3PL side mounted

2.4 cutting

2.6 @ 10kph

12900

Ireland

DM 306 P

Disc; (6), 3PL side mounted

Can retro tine

3.0m

No data

15925

Germany

2500IV

Drum; (2) 3PL rear mounted

Wilter/Spreader

2.5; cutting

2.5

11800

Palmerston North

Novadisc 350

Disc; (8); 3PL side mounted

3.46; working

3.4

23495

Austria

jj.co.nz

KDT300

Disc; (7); 3PL side mounted

3; working

3.5

18500

Poland

toplink.co.nz

DM 280 H

Disc; (7); 3PL side mounted

2.8; cutting

No data

13100

Italy

sitrexequipment.co.nz

gaz.co.nz & malonefm.co.nz masseyferguson.com.au farmgear.co.nz

NB: Capacity can vary considerably with crop weight, type, tractor speed, and moisture content. * Kverneland power requirement is quoted as the Minimum Power Required PTO output.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

swathing plates or swath formers on disc mowers allow a range of swath patterns. They may be used to simply flick the pasture in from the edge of the swath so there is a line to follow on the next pass and cut crop is not being run over. Grass left in clumps tends to kill the grass underneath and promotes eczema spores. Maxam claim their mowers fitted with the Wilter Spreader are the only mowers that can cut, condition, and spread pasture in one pass without driving on the cut crop. Windrowing: Maxam mowers with wilter tines removed windrow the cut pasture. With Krone mowers, the windrow width can be set to the tractor’s track width and tyre size to avoid tractor wheels running on the cut forage. On wet ground the mat is at risk of getting caked to the ground. Wilters condition and spread the pasture out, allowing quicker drying. Damage control: Side-mounted mowers have a breakaway system to minimise damage when an object like a fence post or trough is struck. The better systems automatically swing backwards and lift to clear the obstruction, and then swing and lower back into work position. All mowers have mechanisms to

minimise damage to drive systems, with PTO clutches being popular. Others like the Kuhn GMD 240 FF have individual discs deactivating when something like wire is picked up. A heavy safety curtain should prevent damage to surrounds by containing debris. Kverneland claim their round discs are less susceptible to stone impacts than oval-shaped ones. Hydraulic flotation: This keeps even pressure across the full width of the mower, less bounce at headland turns, and less movement of the mowing bar when travelling. This can be adjusted from the cab, or set to automatic on mowers like the Pottinger A10. The same effect is achieved on mowers like the Maxam 3300 which uses two heavy duty compression springs to transfer weight of the mower onto the tractor, allowing the mower to ride lightly across the ground. (Auto swathers (aka groupers): These are essentially a conveyor belt which fits to the back of the mower and shifts the row mown on to the previous row. They are suitable for long, mature baleage or silage crops, to limit drying and allow harvesting without windrowing. Blade design: This affects picking up and mowing of grass flattened by the tractor wheel, with Maxam claiming

their mowers blades are designed to do this. Blades should be easily reversed and changed. Pivot angle, to cater for sloping ground. (up to 35 degrees is possible) Maintenance: Many disc mowers have an enclosed oil bath in the disc mower’s cutter bar, for minimum maintenance. Individual disc removal for servicing or repairs is preferable. Lighting, where road transport after dark is anticipated. Hydraulic folding for transport is featured on most models, with folding up past 90 degrees giving better balance. Bigger units may swing aft in line with the tractor. Transport height and length. Support Trestle for storage. Optional Equipment: Swathing discs, feed cones, wear skids. Tables 1 and 2 summarise specs provided for “an entry level model for the smaller dairy farm, (Table 1); and a higher capacity / spec model which the more established dairy farmer, (Table 2) would buy. The table is not intended to be a comparison of models, but to list the brands available in NZ, and typically what farmers are buying. Many more models may be suited to individual situations.

Table 2: Summary of Specifications Provided by Suppliers for Mowers Commonly Recommended for Bigger Dairy Farms Model

Type; (Discs / Drums); Mounting

Conditioner

Tractor kW

Width, (m)

Capacity

$+ GST

Made In

See www.

DISCO 3600 CONTOUR

Disc; (8); 3PL centre pivot

51 (70hp)

3.4; Working

3-5

28000

Germany

claasharvestcentre.com

RAMOS 320

Disc ; (6); 3PL side mounted

Tine optional

3; working

No data

18995

Germany

norwood.co.nz

K320

Disc; (8); 3PL side mounted

3.2; working

No data

16990

Denmark

forestquip.co.nz

Krone

EasyCut R360

Disc (8), balance point suspension

3.6; working

4 – 4.5

28590

Germany

tulloch.nz

Kuhn

GMD 4411 FF

Disc; (10); 3PL centre pivot

4.35, cutting

Approx 5.6

29500

France

kuhn.co.nz

3332MT

Disc; (8); 3PL side mounted

Steel tyne or roller

66*

3.16; working

Up to 5†

No data

Denmark

kverneland.co.nz

Procut 900

Disc; (7); 3PL side mounted

2.85 cutting

4 @ 10kph

14900

Ireland

gaz.co.nz & malonefm.co.nz

DM 306 TL

Disc; (6) 3PL centre pivot

Can retro fit tine/roller

No data

21995

Germany

masseyferguson. com.au

3300IV

Drum; (4); 3PL rear mounted

Twin Wilter Spreaders

3.3; cutting

3.3

16400

Palmerston North

Novacat 352V

Disc; (8); 3PL centre pivot

3.46

3.4

27995

Austria

jj.co.nz

KDTC340

Disc; (8); 3PL centre pivot

3.4

23000

Poland

toplink.co.nz

DM 3200

Disc; (8); 3PL side mounted

3.2; cutting

No data

17150

Italy

Brand Claas Fella Fransgard

Kverneland Malone Massey Ferguson Maxam Pottinger Samasz Sitrex

farmgear.co.nz

sitrexequipment. co.nz

NB: Capacity can vary considerably with crop weight, type, tractor speed, and moisture content. * Kverneland power requirement is quoted as the Minimum Power Required PTO output.

Dairy Exporter | www.nzfarmlife.co.nz | December 2018

RESEARCH WRAP NORTHLAND

Kikuyu management guide updated

orthland Dairy Development Trust has teamed up with DairyNZ to update the kikuyu management guide and add extra information on to their website this summer. Kikuyu is a subtropical grass which is well established in northern New Zealand and requires very different management to ryegrass-based pastures. As kikuyu spreads south through the North Island farmers are needing practical management advice to avoid the massive problems associated with poor kikuyu control. Work done by NDDT at the NARF farm has shown that kikuyu can match ryegrass in profit if it is managed correctly. This management focusses on establishing ryegrass into kikuyu pastures in the

autumn to provide feed in winter and spring. Control of kikuyu through high stock pressure and mechanical mulching is key through the autumn months. Italian ryegrass is then drilled or oversown into controlled kikuyu in April to fill the feed gap in spring. Farmers who move on to kikuyu farms without this knowledge can find themselves with massive feed deficits during spring calving time. Sale or sharemilking contracts on kikuyu farms should reflect the unique management that is required, including a maximum pasture cover rather than a minimum on June 1. NDDT and DairyNZ aim to have the four-page management guide available by January. There will also be additional information on the NDDT and DairyNZ websites covering the plant agronomy and

Control of kikuyu through high stock pressure and mechanical mulching is key through the autumn months.

growth characteristics, seasonal management, mulching, establishment of Italian ryegrasses, and animal health effects. For more information go to www.nddt.nz or email info@nddt.nz

GEAR UP FOR HAY SEASON MF ROUND BALERS

MF MOWERS

MF TEDDERS

MF RAKES

• 2.25m or 2.40m 5 bar camless pick-up for whistle-clean fields • ISOBUS compatible with E-Link or E-Link Pro terminals • HydroFlex rotor floor for maximum crop flow with minimal risk of blockages • ELS (Easy Load System) for quick and simple net roll changes

• Available in 2.4 m to 9.3 m cutting widths • Front mount, rear mount and butterfly options • Professional series mowers • Quick change blade system • DriveGUARD cutter bar protection

• Available in a range of raking widths from 5.2 m to 10.2 m • Strong galvanised spring steel tyne arms • Super C tynes 9.5 mm tested for over 200,000 impacts without damage • Enclosed rotor heads protecting components from dirt and dust

• Working widths from 3.6 m to 12.5 m • 1, 2 and 4 rotor options • Unique tyne arm mounting for perfect fit and reduced wear • ‘Jet effect’ protects tynes when lowering rotors to the ground

CONTACT YOUR LOCAL MASSEY FERGUSON DEALER TODAY Dairy Exporter | www.nzfarmlife.co.nz | December 2018 MASSEYFERGUSON.CO.NZ | FREECALL 0800 825 872

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