Dairy Exporter March 2021 by NZ Farmlife Media

Learn, grow, excel

March 2021

Adding value to dairy VALUE IN THE MARKET FROM VALUES ON FARM

$12

MARCH 2021

$12 incl GST

Early scans catch early slipping

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

FAIRNESS THROUGH SUCCESSION 1

Protect your farm and your family from Salmonella

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Salmonella is widespread on New Zealand dairy farms and cases are increasing nationwide1. Striking without warning and spreading quickly, Salmonella can pass from your stock to the ones you care about most. Vaccinate today to reduce the destructive impact of an outbreak.

SALVEXIN®+B NEW ZEALAND’S ONLY SALMONELLA VACCINE FOR SHEEP AND CATTLE

AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ACVM No: A7886. Schering-Plough Animal Health Ltd. Ph: 0800 800 543. www.msd-animal-health.co.nz NZ-SAL-201200001 ©2020 Intervet International B.V. All Rights Reserved. 1. Surveillance. Vols 41-47, No. 3, September 2014-2020

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

48 ORGANICS A WAY OF LIFE

CONTENTS MILKING PLATFORM 9

Frances Coles takes stock in autumn

10 John Milne checks out summer crops for his West Coast farm 11 Waikato farmers Nic and Kirsty Verhoek would welcome a bit of rain 12 George Moss is confident of a bright future

UPFRONT 14 Lessons from Covid-19: Keep calm and carry on farming 18 Global Dairy: Brexit is complicated for Irish dairy farmers 42 TRANSITIONING TO REGEN PRACTICES

20 Market View: Dairy commodity prices keep on getting better

BUSINESS 22 Growth: Cor and Christine Verwey are now multiple farm owners 28 Succession: Creating a workable farm succession plan 30 Southland SMASH info day supports sharemilkers 33 CO Diary: How to be a good boss

SYSTEMS 34 Northland dairy farmers breathe new life into drought pastures 36 Tetraploid ryegrass, clover could lower nitrogen levels 38 South Taranaki couple find value in autumn calving 42 Align Farms invests in regenerative pasture 54 THE SHARP END OF SUCCESS 4

46 Opinion: Investment in innovative food companies on rise Dairy Exporter | www.nzfarmlife.co.nz | March 2021

SPECIAL REPORT

ADDING VALUE TO DAIRY IN-MARKET VALUE FROM VALUES ON FARM

SPECIAL REPORT: ADDING VALUE TO DAIRY 48 Organics a way of life 48

52 Do the compliance, get the treats

Organics a way of life

54 The sharp end of success 57 Getting farmers on the pathway to success

Do the compliance, get the treats

59 Tatua 360 supports continuous improvement

The sharp end of success

60 Adding values to exports

61 App gives real-time milk data

Getting farmers on the pathway to

62 Culture to the core

success

ENVIRONMENT

Co-op’s commitment to continuous

65 Kaiwaiwai Dairies have established wetlands and a solar array Adding values to improvement

68 Ways to reduce your farm’s footprint

exports

61 App gives real-time milk quality data

STOCK 70 Scan early to check for calf slipping

Culture to the core Dairy Exporter | www.nzfarmlife.co.nz | March 2021

47 72 Vets Voice: Modern ultrasound for dairy cows

74 MPI’s new chief biosecurity officer talks Mycoplasma bovis

YOUNG COUNTRY 76 Irrigation, hunting the life for Lincoln University student Jack Taggart

RESEARCH WRAP 79 Feed additive promises to cut methane emissions 81 Genetic engineering now editing 65 PLANET, PRIDE AND PROFIT

WELLBEING 84 Health and safety when going off-road

DAIRY 101 86 Teat spray equals happy cows

SOLUTIONS 88

Unlocking efficiency with Three Way Cross

89 Lowering nitrogen without breaking the bank

OUR STORY 76 ACTION MAN OF IRRIGATION

COVER

90 The Dairy Exporter March in 1971

Our photographer Brad Hanson put his artistic creativity and cholesterol levels on the line for our cover this month - capturing some of the premium NZ dairy products adding value to farmers’ paychecks.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

DAIRY DIARY DIA COVERAGE FOR 2021 Central Plateau: March 2, Rotorua Bay of Plenty: March 4, Awakeri Waikato: March 6, Karapiro Northland: March 9, Whangarei Auckland/Hauraki: March 11, Karaka Canterbury/North Otago: March 16, Wigram West Coast/TOS: March 18, Greymouth Southland: March 20, Invercargill Manawatu: March 24, Palmerston North Wairarapa/Hawke’s Bay: March 25, Masterton Taranaki: March 27, Hawera For more information visit www. dairyindustryawards.co.nz/regions/ March 15 – Good Yarn Workshop at Ngatea between 10.30am and 1.30pm. These workshops give you the practical skills and confidence to talk to people in rural communities about mental health. Other dates/locations in the Hauraki district: March 16, Paeroa; March 17, Waihi. Register at www. trybooking.co.nz key word: GoodYarn. March 16-18 – MINDA live training session at Te Aroha is part of a LIC-run MINDA roadshow around the country. Each location will have an intermediate session from 10am to 11.30am; MINDA app session from 11.45am to 12.15pm; farmer feedback session from 1pm to 2pm, and a Protrack session 2.30pm to 4pm. For other dates and locations visit https://www.lic. co.nz/products-and-services/minda/mindalivetraining/. March 17 – Make time for your people is the theme for face-to-face workshops run by the Dairy Women’s Network that set the scene around being a great employer and employee. Dates/locations include March 17, Ashburton;

March 18, Winton; March 23, Whangarei; March 30, Dannevirke; April 1, Stratford. To find out more and to register visit https://www.dwn. co.nz/events/. March 18 – Owl Farm holds its March focus day to discuss management of the season to date, performance of summer crops, and growing calves on chicory. The field day runs between 10.30am and 1pm. For information about the farm visit www.owlfarm.co.nz.

April 8 – This year the Dairy Women’s Network takes its annual conference to the regions, beginning with Taupo. The conference includes sessions and workshops. Other dates/locations: April 13, Ashburton; April 15, Queenstown. For more information and to register visit https:// www.dwn.co.nz/dwn2021/.

March 18-20 – Central District Field Days at Manfeild, Feilding. Visit https://www. cdfielddays.co.nz. March 20 – Nominations close for the Fonterra Responsible Dairying Award. Visit https:// www.dairyindustryawards.co.nz/responsibledairying-award/. March 23-24 – MobileTECH AG at the Distinction Hotel in Rotorua showcases digital technologies transforming the agriculture, horticulture, and forestry sectors. Visit https:// mobiletech.events/. March 24 – Let’s Celebrate Dairy – Lichfield, is a SMASH-run day in the Waikato that includes Over the Moon Dairy, Kowhai Creamery Ice Cream and more. For more, visit https:// www.smallerherds.co.nz/smash-events/letscelebrate-dairy-lichfield-march-24th/. March 24-26 – South Island Agricultural Field Days at Kirwee in Canterbury. Visit https://www. siafd.co.nz/. March 31 – Entries close for the 2021 Dairy

Business of the Year. Entrants undertake a high-level analysis of the KPIs within their business that drive profitability, resilience and sustainability, while benchmarking themselves against their counterparts. To enter, visit https://www.dboy.co.nz.

April 8 – A Nguturoa Catchment project field day is being held at 267 Millricks Line, Linton, in the Manawatu, beginning at 10.30am and finishing at 4pm. The day includes a farm and stream walk, plus the opportunity to discuss and see the results of the project to date with farmers, industry groups, scientists and policy agencies. Farmers within the catchment have been studying stream health, greenhouse gas and farm management issues, with NIWA scientists carrying out monthly water tests for nutrients, sediment and pathogen indicators. Methane and nitrous oxide greenhouse gas results have also been modelled. For further information contact Terry Parminter at KapAg Ltd, terry.parminter@kapag.nz. April 29 – DairyNZ Farmers’ Forum is a oneday event at the Claudelands Event Centre in Hamilton to look at what the future holds for dairying and how you can respond. Livestreamed sessions are also available and the day will be followed by webinars on May 6 and May 13. For more information visit www. dairynz.co.nz.

HOMEOPATHIC PRODUCTS TO SUPPORT UDDER HEALTH AT DRY OFF HOMEOPATHIC FARM SERVICES

e info@farmservices.nz 6

p 07 858 4233

w farmservices.nz Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Editor’s note

SPREADING THE

good times

ith a flurry of activity from China, the GDT auction overnight rose 15% - to the highest level in seven years. According to Rabobank analysts, there are a number of reasons for the stockpiling of product in China and activity in the GDT auction - one is that with imported feed prices rising, milk is expensive to produce in China at present. The Chinese are also reacting to other factors like their wish for higher and safer food stocks, Covid-19-induced vessel and customs delays, and bad weather in the Northern Hemisphere affecting production. Our Milk Payout Tracker is inching towards a Fonterra 20/21 forecast payout of $7.38 this month (pg8), now below Fonterra’s new guidance midpoint of $7.60, either of which would be a great result for farmers this season. When you plug the March 3 figures into the NZX FarmGate Milk Price Tracker the number comes out at $9.38/kg MS and we all know what can go up quickly can also go down so as the Rabobank commentator said - better buckle up! It might be a good time to consider the NZX futures market to lock in a price and take some of the volatility out of the market. End users will surely be piling into the market to do the same. When you consider the ongoing Covid-19 disruption to livelihoods and jobs across the world and in New Zealand, farmers have been so lucky to have been able to operate essentially as business as usual. In fact, the rise in the demand for high-quality and safe food has been a factor in driving the GDT to new heights. That’s why I think it’s such a great initiative for farmers to be able to support less fortunate and more Covid-19-affected Kiwis with the Meat the Need and Feed Out initiative. This week a group of 51 farms all managed by Farm Right donated one cow each to the Meat the Need charity providing a pack of mince in almost 8500 food parcels from foodbanks, and serving 33,000 beef meals for Kiwis. With the huge need at foodbanks around the country, imagine the result if every farmer could donate a cull cow? Check them out at meattheneed.org, or on Facebook - and donate this autumn. This month we look at the ways the dairy companies are adding value to dairy - audited QA programmes are translating into added-value in the marketplace and enabling

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Our photographer Brad Hanson enjoyed the spoils of shooting photos of premium dairy products for our special report.

the companies to pay a premium to farmers or to pay a dividend on their co-operative shares. The message from the market is strong and growing - in an opinion piece, Southern Pastures and Lewis Road Creamery executive chairman Prem Maan says that increasingly savvy and educated consumers want to align their own personal values and views with the food they eat (pg 60). He says we need to add values to our dairy, not just value. All of the companies we talked to have programmes with standards that encourage achieving best practice around pillars covering animals, people, food safety, environment and community. Many of them incentivise with premiums for the milk, others are already passing back a premium in their milk price but all use it as a way to signal to farmers what consumers in the markets are requiring, and to safeguard our premium place in the international market (pg52). Even with a milk price roaring ahead we need to guard and enhance our reputation as producers of natural, environmentally sustainable and carbon efficient dairy products.

NZ Dairy Exporter @YoungDairyED @DairyExporterNZ @nzdairyexporter

NEW ZEALAND

NZ Dairy Exporter is published by NZ Farm Life Media PO Box 218, Feilding 4740, Toll free 0800 224 782, www.nzfarmlife.co.nz

NEW ZEALAND

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. Read more at www.nzfarmlife.co.nz

FIELD-TESTING REGEN AG

CAN YOU SPARE A CULL COW? DONATE TO MEAT THE NEED

Dairy Exporter Editor Jackie Harrigan P: 06 280 3165, M: 027 359 7781 jackie.harrigan@nzfarmlife.co.nz Sub-editor: Hamish Barwick, 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 Andrew Swallow, P: 021 745 183 andrew@falveyfarm.co.nz Chris Neill, P: 027 249 1186 waipuvian@gmail.com Phil Edmonds phil.edmonds@gmail.com

We visited Rhys and Kiri Roberts at Align farms to see the farm-scale trials they are running on regen ag vs. conventional dairying. They are collecting data on financial, physical, social and animal health metrics to make informed decisions and share with other farmers on the regen farming system.

Elaine Fisher, P: 021 061 0847 elainefisher@xtra.co.nz Anne-Marie Case-Miller P: 021 210 4778 annieproppy@gmail.com

MILK PAYOUT TRACKER: 8

Check out the Align Farms video on YouTube ‘Dairy Exporter’ channel.

$/kg MS

PODCASTS:

Series 2, Podcast 2 In this podcast, Okoroire farmer Floyd Smit joins CRV’s Jenna O’Sullivan and Rosanna Dickson to talk about breeding with Polled genetics. www.crv4all.co.nz/ podcast/series2-episode2/

7.90

7.20

7.40

7.65

7.40

7.50 7.00

Mid $7.60

7.30

7.25

6 5

For all Dairy Banter Podcasts visit www.nzfarmlife.co.nz /tag/dairy-banter

Fonterra forecast

8 7 6 5

6.01

6.12

May 2020

Jun

6.32

6.43

6.44

6.55

Jul

Aug

Sep

Oct

6.77

6.81

6.93

Nov

Dec

Jan 2021

CONNECT WITH US ONLINE: www.nzfarmlife.co.nz @DairyExporterNZ

NZ Dairy Exporter

@nzdairyexporter

NZ Dairy Exporter

Emily Rees emily.rees@nzfarmlife.co.nz Social Media: Charlie Pearson, P: 06 280 3169 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

Tracking the forecasts for the 2020/21 Fonterra payout

$/kg MS

Series 2 Podcast 3 Determining the pregnancy status of your herd via milk can be done as part of your CRV herd test. Listen to DairyNZ animal and feed developer, Sam Tennent, and CRV herd testing manager Mark Redgate to find out more. www.crv4all. co.nz/podcast/series2-episode3/

Average $7.38/kg MS

2020/2021 Fonterra forecast price

Design and Production: Jo Hannam P: 06 280 3168 jo.hannam@nzfarmlife.co.nz

7.24

Feb

Subscriptions: www.nzfarmlife.co.nz subs@nzfarmlife.co.nz P: 0800 2AG SUB (224 782) Printing & Distribution: Printers: Ovato New Zealand Single issue purchases: www.nzfarmlife.co.nz/shop ISSN 2230-2697 (Print) ISSN 2230-3057 (Online)

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

MILKING PLATFORM SOUTH CANTERBURY

sharpen the focus on the goals, and work out exactly what steps need to be taken to set yourself up for an even better season next year. Personally, I’ve taken the plunge into a health and fitness overhaul through a fiveweek bootcamp-style challenge through my local gym. Three weeks in and I’m already feeling the benefits of increased strength, fitness and mental clarity. (I am missing chocolate terribly though, ha ha). From a business point of view, there’s a slew of FEP audits and annual Lead With Pride assessments starting to fill up the calendar for the next couple of months, so the team are all working together to go over every aspect of the business with a fine-tooth comb and make sure everything is up to scratch. Harvest time in autumn is busy with the crossover of late summer activities with prep for the winter.

Autumn a good time to take stock Frances Coles looks back on a good summer and feels positive about the future and the season ahead.

s it just me, or does the autumn period onfarm seem to just keep getting busier? Here in Canterbury there seems to be a crossover of late summer activities (irrigation and harvesting of crops) with early autumn prep for the winter and season ahead (feeding out to build pasture cover, final herd test for the season to sort out early culls etc). We’ve been pretty blessed with outstanding weather for much of this season, so have been able to capitalise on the payout that seems to keep going from strength to strength. Looking back a year, I think we were all pretty nervous as an industry about what exactly the Covid rollercoaster was going to mean for demand for our products

worldwide, but we seem to have weathered the storm and continue to have great tailwinds to send us into the next season feeling much more optimistic. However, the recent lapse back into higher alert levels reminds us that the world is still walking on eggshells to a certain extent, and we all need to do our bit and scan, scan, scan! I find the autumn can also be a good opportunity to start to look back on the season to date and reflect on our successes. The manic months of calving and mating are well behind us, holidays have been enjoyed and the children are back at school, signalling a return to a more structured routine. It’s the perfect time to take stock of where you are, both personally and within your business,

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

“Three weeks in and I’m already feeling the benefits of increased strength, fitness and mental clarity.” Many other young farmers around the country will have been doing something very similar in recent weeks, as they prepared for Dairy Industry Awards judging (which Aaron had the pleasure of being involved with again in our region this year). As someone who has been involved with the awards programme in one capacity or another for almost two decades now, I’d really encourage all farmers to get involved with them however they can – either as an entrant, judge, sponsor or supporter. They provide an awesome opportunity for entrants to learn, network and grow, for more experienced farmers to be inspired by new ideas and innovations, businesses to back the people who have supported them through good times and bad, and the industry as a whole to celebrate hard work and excellence. My challenge to all of you this month is to stop, take stock of where you are, celebrate where you have come from, and ask yourself where you can lift the bar even higher next season. As Henry Ford said, “If everyone is moving forward together, then success takes care of itself”. 9

MILKING PLATFORM WEST COAST

Forage maize is delivering beyond expectations and the cows agree.

Summer crops scrutiny

Here’s the important stuff: • 12% DM • 9.9 – 10.2 ME (range over the three paddocks) • 12.3 crude protein

John Milne discovers trial and error is the only way to work out what summer crops are right for the farm.

f you haven’t got it, you will need it. If you don’t need it, you will have it. That’s how we sum up growing summer crops. We have tried plenty of them, from a straight chicory crop to turnips and summer rape. Trial and error over the years has shown us that it can be extremely expensive and quite disappointing, to be blunt. Establishment of crops is the biggest challenge in our environment. Saturated soils changing to bone dry, compacted seedbeds. Every insect known to man, and a few extras that haven’t been heard of before turn up. All resulting in endless sprays and diminishing yield. This spring we made a big effort to identify a summer feed which will give us yield and results. The main criteria had to be: 1. Great at harvesting soil moisture. (Dry sandy soils) 2. Able to stand extreme periods of wind. (25 – 35km/h day on day) 10

3. Damn-all sprays required to get yield. The answer: Forage King maize. That’s what we went with and it has delivered beyond our expectations. Five hectares in total, two planted late September, three in late October. Planting was done with a conventional drill at a depth of 35mm. Sowing rate is recommended at 50kg/ha. We went with 85kg/ha in September and 65kg/ha in October. The main reason for this is a ‘strength in numbers’ game. The only way we can beat the winds. Fertiliser: • Nitrophoska went in with the drill at sowing. • Base fertiliser was applied at germination. • Then two side dressings of fertiliser until grazing. • Spray was applied after drilling and that was it. Mid January we started to feed it out and the cows adjusted straight away. (We had trialled one paddock last summer.)

Weighed out at 15 tonne DM/ha (12-18 tonne range over the three paddocks) No harvesting costs!!! Equivalent to approximately 400 bales of balage. So we worked on feeding 4kg/cow/day, approx 700 x 750 m²/day. One hour on this and most are lying down, very content. Production is holding steady at 1.46 MS kg/cow on OAD at time of writing. The only downside is a bit of wastage from some of the crop being as tall as hand-reach height (see picture). What they don’t eat today, they clean up fairly well the next day after some wilting. Half the area grown came straight out of winter crop paddock – harrowed and drilled. One of the main reasons we need green feed other than the dry is to help combat facial eczema (FE). Along with zinc in the water, balage combined with the maize should make for a good management tool. FE is more common on our farm than not now. It would appear we have quite a hot spot in our region for spores and it can be very devastating to the tail-end of our season. When the spores go right out of control we administer a zinc bolus to give us six weeks total cover for each cow.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

MILKING PLATFORM WAIKATO

Left: Summer dry in northern Waikato. Right: Chicory – worth its weight in green gold during the summer dry. Below: Enjoying a decent break off the farm.

Sizzle, sizzle, where’s the drizzle? Hot and dry may be great for summer holidays, but Nic and Kirsty Verhoek would welcome a bit of rain for their pastures.

ronically, it was only in the December Dairy Exporter issue that our biggest problem was managing pasture quantity and quality. Like with Covid-19, things have taken a quick turn over the past two months. They say the two non-negotiables in late lactation are: 1) pasture cover at the end of May in preparation for calving, and 2) cow body condition score. As you can see from our current terrain in the northern Waikato, if we don’t get some rain pretty soon, target pasture covers come May could be a bit problematic! Our farm goal at this time of year is to have a strong finish to the current season without compromising ourselves for a good start to next season. Maximising lactation length, cow condition, and low somatic cells are front and centre. Cows are holding up well under the heat, with no grass or rain, and pasture cover is dismal. It would be most upsetting if the girls weren’t doing such a good job. We are counting down the days and watching out the window for the storm clouds. Just a

farmer’s luck, the maize is due to come in and we are sure the rain will follow as we scramble to pull the silage cover out. Despite the lack of a live blade of grass, the chicory is earning its keep this season. Not only do the green strips of chicory give some visual diversification to the brown landscape, but the girls also eagerly await the autogate each day to get

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

their allocation. With irrigation not an option, we are really seeing the benefits of concrete investment at this time of the year. The mixer wagon is working as hard as the cows in this heat, with the feed pad currently providing the majority of our cows’ diet. This has allowed the girls to keep the condition on and continue to milk twice a day, producing well. Although this time of year things slow down a bit, there is always plenty to do: spring cleaning the dairy and calf sheds, getting on top of machinery maintenance, aggressively attacking weeds, and hoof maintenance to name a few. Our young stock also went off to the graziers. Although it is good to have them off the farm, it is also not the time to get complacent and we will continue to make sure we visit and track their progress. The eagerly anticipated pregnancy scanning results have also just come in: 11.3% empty which given our circumstances (sexed semen, short AI, long calving tail, multiple PG Why Wait Programmes), we were satisfied with this result. Along with our farm goals we also have our personal goals and one of those has been to take regular time off together as a family. This year has been one of our first in a long time to have a significant break off the farm after calving. We have been able to do so knowing that three great permanent staff are committed to staying on next season. Our time was well spent playing with the kids, hanging at the beach and lake, and generally just taking things easy. Something we highly recommend. 11

MILKING PLATFORM SOUTH WAIKATO

“Call me me optimistic or just naive, but I believe dairy has a good future. ‘

Déjà vu - another early dry-off? The balance shown in the Climate Change Commission’s report pleasantly surprised George Moss, and he thinks dairy has a bright future.

t is raining at the moment and hopefully it will be enough to prevent a third dry autumn. The soil moisture probes have shown that soil temps peaked about a degree higher at 25C and moisture itself is on par with the same time last season. While moisture levels were better going into late January, the extra heat plus wind has meant that pumice areas, in particular, have given up the ghost. The good news is that we, like many other farmers, had an extraordinary spring and have extra silage on hand, albeit of very average quality. The plan currently is to go hard as we did last year, and if need be dry off early again – last year late March. Looking at the DairyBase figures it appears to have left us with above average performance on a number of measures, including GHGs. I think the very high peak production that we had in October followed by a difficult (cloudy, damp) November has negatively impacted on herd in-calf rates with a number of very long returns showing up now – frustrating! 12

The Climate Change Commission (CCC) has delivered its report and I’m pleasantly surprised at the amount of balance it contains. It clearly shows that there is no easy fix for New Zealand and that all sections of society have a role to play. Pleasingly the commission is of the view that with an increased focus on achieving onfarm efficiency plus some land use change, the methane targets for the first 10 years are achievable and that the lower end of the range given for the 2050 targets is possible. It is acknowledged by all that it is not without challenges and some difficulties, and just allowing ourselves to drift there is unlikely to cut it. Like many farmers, we are waiting to see what the recommendation from He Waka Eke Noa is going to look like for the pricing of farm gate emissions. The biggest challenge that I see is how do we reduce our absolute emissions as a sector and at the same time ensure that we maintain our global leadership in emission density per unit of output. Purchasers of our product

are interested in the product footprint and the CCC as a new agent for New Zealand is interested in us achieving absolute reductions, and if we fail then their next budget may suggest stronger actions. Pleasingly all staff have elected to stay with us for next season, which is one fewer worry. We both have managed to get away for a few days to the West Coast, despite numerous meetings both online and in person. I was fortunate enough to get some kayak fishing in and catch a respectable feed each time. Although one day there I was ‘monstered’ by three stingrays in quick succession – the last one getting the line tangled around the rudder and ultimately leaving with some of the gear. Kayaks aren’t really suitable for handling rays. Sharon chooses to just chill and take in the wonderful views of the water. Call me optimistic or just naive, but I believe dairy has a good future, certainly in the short term – our main markets China and Asia have largely come from plant-based foods and appear to have an increasing appetite for animal products. The USA has a requirement that dairy products are part of the government food packages going to the 40-odd million ‘food insecure’ people there. Nutrient density is critical for those with limited choices. The ability of us and our competitors to dilute the price down with extra production is increasingly constrained. Interest rates I feel are likely to stay at the unbelievable lows for a while yet – who would have thought rates with a 2 in front of them was possible five years ago. Twelve years ago we agreed to go with the bank that could get us under 8%. This is a fastmoving space, but as primary producers we should smile.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

PROTECTING THE FUTURE OF YOUR HERD.

THAT’S GOT THE TEATSEAL OF APPROVAL. Keeping your herd healthy and productive is a 365 day a year job, and dry off is one of the most critical times to prevent mastitis. What you do (or don’t do) during dry off impacts herd health and sets up your cows for future seasons. Teatseal® is proven as the most effective way to prevent new infections, both over the dry period and at calving.

By preventing mastitis with Teatseal, you’ll be one step closer to making dry off pay off. Contact your vet or learn more at teatseal.co.nz Dairy | www.nzfarmlife.co.nz | Zealand MarchLimited. 2021 Tel: 0800 963 847; www.zoetis.co.nz. TEATSEAL is a registered trade mark of Zoetis. ACVM No. A7294. *Zoetis Exporter Study No.A131R-NZ-14-251 (A3251). Zoetis New

UPFRONT COVID CHANGES

INSIGHT

Covid-19:

Keep calm and carry on farming New Zealand’s Covid lockdown last year had little effect on farming operations, other than to move a lot of things online. Phil Edmonds reports.

year on from New Zealand entering Covid-19 Level 4 lockdown it’s timely to reflect on the way we adapted to the ‘black swan’ event, and consider whether any changes made, or new thinking adopted, will have a lasting impact on farm operations. The release of a research study into farmer experiences of the initial lockdown, undertaken by AgResearch, Lincoln University and Plant & Food NZ among others, has started the evaluation process, and at a high level, tells something many of us already know – farmers are resilient and as a result got on with it, as ever. This finding was based on farmer survey 14

responses that identified the relative ease with which they kept calm and carried on. Having been granted essential service status, many farmers suffered almost no inconvenience. But there is evidence that subtle but important shifts in behaviour took place, some of which are all for the good (digital communication). At the same time, there is also some sense that the effects on farmers from the country going into lockdown last year have yet to fully emerge (labour shortages).

SUPPLY CHAIN DISRUPTIONS

Looking at the findings from the report subtitled The immediate impacts of Covid-19 control measures on the agri-

food systems of Australia and New Zealand, you could argue there’s nothing to see – farmers across both New Zealand and Australia, by and large, boxed on through the initial lockdowns with little trouble. Agricultural activities except fibre production in both countries were classified as essential services, and for the pastoral sector at least, ensuring social distancing requirements were adhered to only required cursory attention. The research ultimately found that ‘the impacts of Covid-19 control measures on the agri-food sectors were relatively small’. But it also suggests that the smooth sailing wasn’t simply due to an ‘as you were’ green light from the government.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

‘You can get nervous about overseas markets and how they might react, but the spirit of the rural sector is based on being resilient and adaptable, which we’ve demonstrated. We’re used to climate uncertainty and the emergence of new technology, so we were well placed to face change.’

The underlying and frequently practiced resilience and adaptability in the face of adversity was a critical advantage. It is also important to note that as much as the Level 4 lockdown last year might have felt like business as usual, there was an element of luck about the timing – at least for some. Agresearch scientist and co-author of the report Val Snow says: “It could have been a whole lot worse for some industries if the timing had been different. There were examples of workers in viticulture having to act quickly to relocate locations before the lockdown in order to complete harvests.” There was also no major weather event in New Zealand that required a regional or even national response. Had there been an extended drought or flood, logistical support would have inevitably been a major challenge and had a negative impact on production. For those in some parts of New Zealand, an autumn drought was being felt at the time, which did generate some knockon problems for farmers. This related to the availability of animal feed for some livestock farmers. It also meant that farmers were forced to adapt their normal operations, due to restrictions forced on other parts of the supply chain that farmers rely on. A summary of the impact of the Covid-19 lockdown on different agri sectors in New Zealand noted that for red meat farmers, some were affected by an inability to get sufficient animals off farm resulting from feed shortages. For the dairy sector, some farmers’ normal operations were disrupted due to social distancing required in processing plants slowing down throughput. This led to a reduced ability to cull cows, which in turn had a negative impact on feed supplies. It was a reminder that farming operations are one piece in the puzzle of

Agresearch scientist and co-author of the report Val Snow.

delivering food to the mouths that pay for it, and while they were able to go about their business without major change, those up and downstream were in some cases less fortunate. The research report noted that the wider agricultural sector was exposed to the flow-on effects of movement restrictions and market disruptions. These included ‘reductions in the availability of replacement parts for equipment, difficulties in the distribution of agricultural products through processing facilities and onto final sales locations, and changes in market demand’.

COVID CHANGES ON FARM

So apart from nothing, what did farmers say changed their world during lockdown? Some of the respondents to the survey noted that farm visits from rural professionals stopped, which was disconcerting both from a business and social perspective. Vets, for example, whose work is unavoidably hands-on and interactive, were one group that had to adapt their practices. Although animal welfare was deemed essential, they were required to treat animals without interacting directly with farmers. Inevitably there were concerns that successful outcomes could be reached.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Other rural professionals used novel means of managing social distancing. Snow says one arable farmer who responded to the survey in Australia recounted an instance where they toured their farm to inspect crops in separate vehicles and communicated by walkie talkie. While most of the interviews that contributed to the research findings focused on problems and short-term fixes, farmers also identified some positive impacts from the forced lockdowns. And this is where the research had added some useful insight. The report says the lockdowns were found to have generated a newfound awareness and determination to ‘explore new labour-saving technologies, find ways to manage previously ‘unmanageable disruptions’ like short-supply chains of inputs, obtain faster and more reliable internet and telecommunications, and provide mental health networks to enhance the ability of individuals to cope with unprecedented abrupt change’. Looking at that list, possibly the most obvious immediate positive outcome has been farmers became more accepting of virtual communications, which is likely to have a lasting impact for their businesses

and human welfare. As was reported in Dairy Exporter’s February story on technology adoption onfarm, the Covid-19 Level 4 lockdown forced farmers to look at alternative means of communicating, and the availability of Zoom sharpened people’s focus on technology. One group of rural professionals specifically identified in this report for acting quickly to enable this and adapt to the non-contact demands under Level 4 were fertiliser companies. Some farmer respondents noted these companies had accelerated a move from physical visits to online/paperless transactions. Ravensdown national services manager Tim Roulston says that finding certainly resonates with his company. “Becoming paperless is a strategy we had been working on for a while, but we accelerated our effort last year. In some ways the Covid-19 crisis presented an opportunity for farmers to take it up. “With the paperless technology, we were able to reduce farm visits. One of the things that has changed is that rather than require a discussion on soil tests and developing an action plan round the kitchen table, it can be done online or over the phone.” Farmer uptake of this new way of working has been evident. “We’ve seen significant growth in digital ordering of plans since Covid-19. This is where someone would have previously had a plan on a piece of paper, and had a rep come out through the season. Now they’re able to collaborate online, choose and act on a plan on a map, which can then be sent right through the supply chain system, through the store, to the spreader,” says Roulston. “During the Covid-19 lockdown and spring, orders made through digital channels peaked at one in every three. A year before that it would have been one in five.”

Ravensdown national services manager Tim Roulston. 16

LABOUR SHORTAGES EXACERBATED

While also acknowledged above as being a Covid-19 inspired opportunity to grasp, addressing labour shortages through new innovation has not been resolved or turned into a positive yet. Snow says the issue came through clearly when the interviews were undertaken last year, which focused on the immediate unavailability of migrant labour – both low-skilled and technically specialised. There was plenty of fear expressed when the border was closed and farm workers were unable to leave or enter the country, although those voices died down when the government moved to create some flexibility for visa holders already in New Zealand. Typical resilience cited throughout the report came through, and it appears that farmers adapted to the unanticipated labour shortage by working longer hours or calling on local sources of help from those outside of the workforce. However, this was never going to be a sustainable response. “It remains an open question how long some primary industries will be able to cope without migrant labour,” says Snow.

This concern is now growing. The February 2021 edition of Federated Farmers Farm Confidence Survey found 35.8% of respondents reported it has been harder to recruit skilled and motivated staff, an 8-point increase from July 2020. There will become a point where those overseas workers who remained in New Zealand on extended visas will want to return to their families as they would normally have done in seasonal lows preCovid-19. With no near-term prospect of a return to easy international travel, and uncertainty about how effective vaccines will be at a national level, farmers and growers are now facing a transition to a labour solution that might be flippantly characterised as short-term pain for longterm gain. In keeping with the report’s findings however, it needs to be said that on balance, the lockdown last year is still likely to have created more opportunities for farm operations to positively evolve than regress. And it has also been made clear that resilience planning is ever important. “We were lucky,” says Roulston. “But we are also resilient. You can get nervous about overseas markets and how they might react, but the spirit of the rural sector is based on being resilient and adaptable, which we’ve demonstrated. We’re used to climate uncertainty and the emergence of new technology, so we were well placed to face change.”

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

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Dairy Exporter | www.nzfarmlife.co.nz | March 2021

GLOBAL DAIRY IRELAND

the Covid-19 pandemic rather than Brexit. Indeed, while the dairy industry experts say it is way too early yet to decipher if Brexit will have any major impact on Irish milk prices, the most promising factor is that demand for dairy is currently strong in both the UK and Ireland. However, dairy farmers in the RoI are expected to tap into a €1 billion (NZ$1.68b) support package allocated to the country by the EU as compensation for trade lost to the UK by Brexit. Both countries are still battling through lengthy Covid-19 lockdowns that were previously set for six weeks, but could be extended. Although the initial closure of the foodservice sector saw a drop in demand for dairy, the overall market for dairy has strengthened with more people cooking and baking at home. In fact, the latest outlook for the dairy industry in the UK predicts further growth as people continue to work from home and cook from scratch as home budgets become further stretched.

Freedom from the EU – well almost! Words by: Chris McCullough

fter 47 years of being shackled to the rules and regulations of the European Union, the UK finally severed ties with the bloc on December 31, 2020. Although that tumultuous journey is over, a new one has just begun as the UK sets itself up for trading battles to find new markets for the food produced by its thousands of farmers. The final Brexit deal agreed between the two nations was a long time coming and kept the world on tenterhooks right until the very end. But at last everyone can move on with the next era – the clean-up! So what does this mean for farmers in both Northern Ireland (NI) and the Republic of Ireland (RoI)? Well, it’s very complicated! Northern Ireland is part of the UK but is connected via land to the Republic of Ireland, which is still in the EU. As part of the historic Good Friday agreement, both the UK and Irish governments agreed that the border between NI and the RoI should be invisible, which was easy when both were part of the EU. However, after Brexit it was agreed that 18

NI would follow many of the EU’s rules and therefore a customs border was set up in the Irish Sea between NI and Great Britain (England, Scotland and Wales). This was called the Northern Ireland Protocol and it came into force on January 1, 2021. This means goods such as meat, milk, fish and eggs can be checked coming into NI from GB under direction from the EU. Still following? In a nutshell, this has caused all sorts of logistical nightmares for food exporters in both the UK and the RoI as well as trucking companies that are drowning in a sea of red tape and being buried under tonnes of paperwork. In 2019, the RoI exported about 1.8 billion litres of milk to the UK, worth about €870 million (NZ$1462m), which is more than 30% of the UK’s dairy imports. RoI is by far the biggest supplier of dairy produce to the UK, with France and Germany second and third respectively. While the politicians battle to get the trading channels between the RoI and GB opened up more freely, dairy farmers on both sides of the Irish border are still milking their cows. That milk is still being processed and consumed, generating quite healthy prices for the farmers, probably more so down to

BREXIT BENEFITS

Since its divorce from the EU, the UK government has ramped up its own support for its dairy farmers in the form of a new code of conduct and has embarked in a new direction of gene editing. Imbalances of power within the dairy supply chain were believed to be causing instability for dairy farmers, such as where milk buyers have the ability to set and modify the terms of a contract at short notice. The responses to this consultation clearly demonstrated the need to introduce new regulations to require certain standards for contracts between those producing and buying milk for processing. The consultation also revealed that the distinctive circumstances in NI may need to be reflected in regulations, and this will be considered. Although banned in the EU, Brexit has also offered up the opportunity for the UK to make its own decisions on gene editing. If given the green light, gene editing could be a real game-changer in the dairy industry, boosting the overall genetic profile of the dairy herd, possibly reducing the use of antibiotics, and boosting milk quality.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Pasture & Forage News

March 2021

Pest pressure on the rise Even if you’ve got away with sowing bare seed in the past, this could be a risky strategy for pasture renewal this autumn.

Uncertified Italian ryegrass (L) vs Tabu Plus (R)

Fastest Italian puts you on the turbo track to profitable grazing Imagine you could earn hundreds of dollars in extra profit by making one simple change to your sowing plans for short-term pasture this autumn. This is not a hypothetical scenario – all you have to do is replace whatever annual or Italian ryegrass you might have sown with Tabu+. Whether you specifically want winter feed, or a 12 month pasture, and no matter where in New Zealand you farm, Tabu+ grows so much DM, so fast, that nothing else can touch it. Every year since its release, including this year, it has been the only 5 star cultivar for winter feed in the DairyNZ Forage Value Index, nationwide. It is also the only 5 star Italian in the FVI 12 month feed rankings, nationwide. Its predecessor, Tabu, was also one of a kind, arguably NZ’s best known and most popular Italian ryegrass from the time of its release in 2001 to its retirement in 2018. During that time more than 500,000 ha of Tabu was sown on NZ farms. As good as it was, however, in plant breeding as in livestock genetics, there’s always room for improvement. So our breeders focussed on two key

features in selecting a successor – establishment speed, and winter growth. Establishment speed is king for Italians. The sooner you can start grazing, the better for farm productivity, especially coming out of drought, or after prolonged summer dry conditions. Tabu+ gets up and growing even faster than Tabu, and it produces significantly more DM in the cool season, when supply of high quality pasture is at a premium. Depending on where you farm in NZ, the FVI values winter growth for Tabu+ at $366-$534/ha extra profit over FVI genetic base cultivars. Sown without clover, it is a valuable break crop to control broadleaf weeds, including hard to kill species like thistles and dock. Tabu+ is also the perfect option for repairing damaged or runout pastures. For more information visit our website www.barenbrug.co.nz.

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Insect pest pressure on newly emerged seedlings was noticeably higher than normal in some parts of the North Island during spring, and those who sowed treated seed for their summer crops were glad they did so. Argentine stem weevil (ASW), black beetle and grass grub are the three species that pose the greatest threat to young ryegrass, and you can easily help insure against them by ordering seed protected by AGRICOTE Grass. Anyone who has lost new grass to pests knows the costs are twofold. First, there is the time and money required to re-sow part or all of a damaged paddock. Second, and more important, is the cost of not having feed available when you expected it. Tonnes of DM/ha can simply vanish from your feed budget, meaning you have to purchase extra supplement to fill the subsequent deficit. It’s not just ryegrass that needs protecting – clover is also vulnerable, to both pests and diseases. AGRICOTE Clover protects seedlings from nematodes as well as fungal pathogens.

INSIGHT

UPFRONT MARKET VIEW

Dairy keeps getting better and better Words by: Amy Castleton

Product counters in Chinese supermarkets are well stocked, and Chinese buying of dairy products is bolstering recent GDT prices.

Global Dairy Trade whole milk powder 6,000 5,000

US$/tonne

airy commodity prices continued to rise in February, though questions are starting on just how high they might go as some commodities reach highs not seen for several years. Prices rose 1.8% at the February 2 Global Dairy Trade (GDT) event, and another 3% at the February 16 event. The increase in prices has been spread across commodities, though whole milk powder (WMP) did lead the way at the February 16 event. WMP prices are currently sitting at their highest level since 2014. Demand for product has been dominated by China, more so than usual. China has tended to buy a larger proportion of GDT product than it usually does – though Chinese buyers did step back a little during Lunar New Year. Demand has also been reasonable from South East Asia, but has continued to tend to be variable from other regions. There have been reports that buyers are purchasing earlier than they usually do in order to contend with the logistical issues many are facing. There have been problems with shipping since the pandemic started, and the situation only seems to be worsening. At present, logistical delays are focused on the US West Coast, meaning many US dairy processors are struggling to get product out of the country. However, there are delays on other routes also, with shipping often taking longer to arrive than it usually does. These issues certainly aren’t unusual at present and buyers are tending to order earlier than they typically would to ensure that they have product on hand when they need it. This is helping to bolster demand for dairy – but what happens when warehouses are full and there is a lot of older product to be consumed? If demand continues in this way we could see a crash later in the year when there’s a sudden realisation just how much product consumers need to get through. NZ milk supply has been relatively slow. After publishing a 2.7% decline in November, December production was up

4,000 3,000 2,000 1,000 0

just 1% year-on-year, and January is also expected to be relatively flat (with data not yet published at the time of writing). This will also be providing support to commodity prices at present, though the market’s mind will soon start to turn towards Northern Hemisphere production as they head towards the peak of their season and the Southern Hemisphere starts to head towards its trough. Early in the month Fonterra lifted its milk price forecast for the 2020-21 season. The revised range is $6.90 – $7.50, up from $6.70 – $7.30. Advance payments continue to be based on the midpoint of $7.20/kg MS. Fonterra said the main reason for the lift was strong demand from China and

Southeast Asia for WMP and skim milk powder. The NZX milk price forecast sits at $7.58/ kg MS at the time of writing, slightly above the upper end of Fonterra’s range. Along with the rise in GDT prices, we’ve also seen increases in dairy commodity futures trading on the NZX Dairy Derivatives market. The outlook for commodity prices is strong for 2021 currently; however we do expect that prices will start to trend down by the second half of the year. This will mean downside risk for next season’s milk price. • Amy Castleton, senior dairy analyst at NZX Agri.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

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BUSINESS GROWTH

Farming is a family affair Cor and Christine Verwey may have started small, but together with their sons, they now own several farms in both islands. Anne Hardie reports.

or and Christine Verwey came to New Zealand with no money in their pockets nearly 40 years ago and today the family milks more than 2000 cows between farms in the Bay of Plenty and the West Coast, with a kiwifruit orchard thrown into the mix. They followed the usual path – working on a dairy farm for a couple of years, managing a farm, and then they took on sharemilking contracts around the Bay of Plenty. The next part wasn’t so typical. The couple bought a 53ha drystock, converted it to dairying, and being $30,000 short on security with the bank, built the dairy themselves. Neighbouring properties were added over the years and today that farm stretches over 120ha and milks 450 cows at the peak, plus winter milk. 22

Add in a couple of support blocks and a 4ha kiwifruit orchard that came with one of the blocks and it’s a profitable business, with son, David, at the helm as a contract milker. He also owns half of the kiwifruit orchard, with the family trust owning the other half, and a packhouse managing the practical side of the business. The family trust was set up to cater for Cor and Christine (who are now separated) and their five children, and that has been central to the growth of the family business, in partnership with various children where possible. With a profitable dairy farm ticking over, it was time to invest in more land and that took them to the West Coast 14 years ago where they checked out the Wild Foods Festival and bought a 130ha dairy farm with more to develop at Mawheraiti.

“We chose the West Coast because it is always raining and we wouldn’t have to irrigate,” Cor says. “We were wrong there.” Son Andrew took up 20% ownership in the farm while the family trust owns the remaining 80%. He headed south to lease the farm from the family trust and owned the cows as well. Further development on that farm has stretched the milking platform to 155ha that now milks 340 cows and produces between 135,000kg and 145,000kg milksolids (MS). Back at school in the Bay of Plenty, Andrew had no real interest in dairying as a career, but when he wanted to leave school he was told he had to have a job first and a job on a dairy farm was an easy option. It wasn’t long before he could see a future in dairying.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Left: Cor and Andrew at the Moores Creek farm. Right: Then it rained.

“I realised you can do well and get ahead quickly in dairying.” Encouraged by his parents, he bought a house in partnership with a younger brother and though it didn’t realise much capital gain in the time they had it because of the PSA effect on kiwifruit in the Bay of Plenty, it forced them to save their money and built up equity. As Cor told them, “you want to get anywhere, you need equity to borrow money”. Ownership in the West Coast farm gained more equity. Along the way, Andrew met Lisa and they now also lease a 165ha farm at Mawheraiti belonging to her parents, Will and Christina Sturkenboom. That farm milks 385 cows for a production of about 170,000kg MS. Three years ago, with farm sales wallowing on the Coast, they had the opportunity to purchase a 410ha farm, Moores Creek, further down

the Grey Valley. Andrew and Lisa own 50%, while the family trust owns the other half. All three farms on the Coast now have managers and Andrew works between them, ensuring there is enough staff on all three. That leaves Cor to be in charge of projects on the farms, such as the ongoing restructuring of Moores Creek,

while Christine oversees much of the administration from the North Island. At the time they bought Moores Creek, Mycoplasma was making headlines in New Zealand, so to be on the safe side, they bought the existing Friesian-dominant herd and added cows from their Te Puke farm. Then they set about overhauling the

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Dairy Exporter | www.nzfarmlife.co.nz | March 2021

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Getting the cows in calf is a key desire of all dairy farmers. Fertility reflects the cows genetic ability to get back in calf. The highest fertility BV animals have the highest 6 week in calf rate and the lowest not in calf rate.

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⊲ Cows with high fertility BV have over 30% higher 6 week in calf rates (source DairyNZ Fertility BV study)

⊲ Cows with better fertility last in the herd longer

⊲ Farmers enjoy a better calving pattern

BETTER COWS 24

BETTER LIFE

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farm, including refencing, adding more water troughs, improving the 56-bail rotary dairy, and adding a few extras such as Protrack. It was a big year and they produced 270,000kg milksolids (MS) from the 700 cows, with cows wintered with a grazier. “The first year was throwing money at it to get it going,” Cor says. “We milked 700 cows twice a day and the empty rate was quite high because of cows calving in late November. When we started calving August 15 we still had 200ha to fence.” By the start of the second season they had regrassed 18% of the farm and lifted cow numbers to 900 to produce just over 300,000kg MS. Because it is a large, spread out farm, they went to 3in2 milkings in autumn “when the cows got sick of walking”. Now in their third season and still in renovation mode, they are targeting 320,000kg MS from 870 cows at the peak of the season and the cows continue to be wintered off the farm. It’s been a learning curve on a larger farm, just like their first couple of years farming on the Coast after Te Puke. That is because in Te Puke, they buy in up to 400kg palm kernel per cow, grow up to 16ha of maize, and because they add so much feed into the system, need little fertiliser. Pasture continues to grow through winter – up to 60kg DM/day if there are no frosts, compared with about 5kg on the Coast, which in the feed budget is recognised as nil. Every year at Te Puke they undersow each paddock with 10kg/ha of Shogun and the end result is 200,000kg MS from 450 cows. It’s a profitable operation, even when payout has been low. Heading south, Cor soon discovered that some of his Bay of Plenty ideas didn’t work on the Coast. “You have to spray for everything around here – springtail, porina and slug bait goes out here,” he says. “It’s harder to regrass here because of the bugs. We’ve got the rain and we’ve got the bugs. But grass will last longer here than up north as long as you are not pugging it.” They farm for a good spring rather than a dry summer – and the Grey Valley dries out in summer, which is why pivots water the sand and stony soils of the river flats and terraces at Moores Creek. Three pivots cover 200ha and K-line waters another 30ha. Last year it was a lot of infrastructure for irrigating just 20 days, but they know

Above: Cor with grandsons Asher and Noah, installing a new water trough. Below: Cor with Andrew’s nephew Braxton.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

there have been times when it has been needed from the last day in October. And without it, the pasture on the stony soils will disappear quickly. But for that crucial spring production, they are planning more drainage to get rid of water quicker. Seasons are off to an earlier start now, with calving brought forward this year to August 3 so that calving is done and dusted by October 10-15. Though they aim at an end of May finish, cows are dried off according to their condition score. Andrew says the older cows need to be five for calving while the two- and three-year olds need to reach 5.5. To ensure they reach those figures, they begin drying cows off from the beginning of April. To make it easier for the cows and staff, the entire herd starts the season on oncea-day (OAD) milking for the first three to four weeks, then all bar two-year olds move to twice a day until the first three weeks of mating. Any cows that haven’t cycled by that time join and remain with the twoyear olds that are on OAD throughout the season. For the past five years Andrew has enlisted the help of consultant Cameron Burton from MilkMap for health issues in the herd such as reducing milk fever and also to ensure the cows are getting the

The clog on the gate gives a clue as to the Dutch heritage of the Verwey family. 25

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Dairy Exporter | www.nzfarmlife.co.nz | March 2021

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Andrew and Cor discuss progress at the Moores Creek’s farm.

correct feeds in their diet at the right time of the year. “It’s an independent eye on where we are at during the course of the season, given various parties all have their own ideas about when and what should be happening.” MilkMap also sets each farm a production target within the parameters of what each property plans to feed, then monitors milk production weekly with updated graphs produced three times a month to show how production is tracking. Andrew says it is handy for staff and managers as well as themselves, plus Lisa’s parents and their supportive bank manager. One of the big goals across all three farms on the Coast is to keep it simple. Their first year at Moores Creek they grew maize because the farm was understocked and fed it on the existing feedpad. As the herd grew, the feedpad has become too small for the entire herd and would prove too much work to feed different herds, so now maize is only allocated to springers and colostrum cows. To keep it simple, they feed palm kernel on all three West Coast farms, buying in 1000t a season, which has the added cost of $40/t to freight it across the Southern Alps from Christchurch. They make supplements on the farm as well, though this year’s wet spring and summer made it challenging and they are hoping to be able to repeat last year’s exercise and cut silage in autumn. They

own very little machinery and Andrew says they are heavily reliant on contractors. “I’ve never believed in machinery and I’ve never seen many rich contractors,” Cor says. “And you need skilled people to drive the tractors.” As Andrew says, contractors tend to do the work faster, cheaper and have a better finish than they can as farmers. After going through an expansion stage in the past few years, Andrew says he needs to make more time for his family, which has now grown to five children. It’s time to make their money work for them and that will likely include off-farm investments. He says they also have to decide whether to continue milking the same number of cows at Moores Creek and add barley in the shed to push production further, or go OAD and make it a more staff-friendly property. “It’s trying to find the best option and that’s hard when there are so many variables,” he says. “It would be interesting though to see what this place could do with more regrassing and better-quality cows.” That’s a point that is debated between father and son. Cor says production is 80% feed and 20% breeding, while Andrew would like to work on the herd’s genetics after seeing the result of breeding on Lisa’s parents’ farm. “Their cows have been bred for 30 years or so and my mother-in-law took a lot of pride in her cows, so they were a quality herd when we took them over. From that I

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

can see the benefits of that long-term effort put into breeding cows. But the mating decisions you make today takes three years before you have a cow in milk.” So far at Moores Creek they have only had to worry about getting cows in calf and apart from empties there hasn’t been any room to cull. The bulk of the herd was originally made up of carry-over cows so genetics are mixed and there’s been no selection. The only information about the cows is via yield sensors, but that doesn’t show whether the cows are milked OAD or TAD. It’s relevant for the two-year olds, which are all OAD, but Andrew would like to herd test once they are in a position to cull on production. Last year they began DNA testing, though that’s more to correctly link calves to cows. That follows the successful export of A1 12-month-old heifers last year for $1400 each; a venture they would like to continue and DNA will prove the breeding. The 155ha Mawharaiti farm is all A2 genetics and they are using A2 bulls over all the herds now, though as Andrew points out, it needs an aggressive culling programme to get there quickly. They’ve in no hurry at this stage as Westland Milk Company has a cap on its A2 supply. They’re conscious that could change if it picks up another A2 contract though, so want to be ready to be included. Last year they flushed five cows on Lisa’s parent’s farm to extend a family that has interested LIC. That produced seven bulls but none made the grade and one was an A1A1 calf, which is all part of the gamble. They also gained six heifer calves from the flushing and that’s worthwhile for the herd, and they intend to flush animals again next season if LIC still shows an interest. “It’s not a cheap process. Calves on the ground are expensive at maybe $1000 if the bulls don’t make the grade.” Going forward, Andrew says one of the greatest challenges will be the new environmental regulations and it’s a matter of knowing where the rules land. It may mean milking fewer cows, but until there’s a set of final, clear rules, it’s a hard one to plan. 27

BUSINESS SUCCESSION

Fairness through succession Story and photo by: Karen Trebilcock

t’s never too early to start talking to your kids about succession planning was the conclusion of a Dairy Women’s Network event in Gore in mid-February. Participants were mostly women with school-aged children, and although some were in the process of taking over the family farm from parents, it was the next generation many were focusing on. McIntyre Dick principal Ash Burdon, whose speciality is farm succession and business planning, said having a succession plan was just as necessary as business plans, health and safety plans, farm environment plans and the other documents required to dairy farm. “It’s best practice to have one,” he said. It also made sure the farming business was sound.

“The farm should not be a burden. You always want your kids to have the best life you can possibly give them. Having them on the family farm shouldn’t change that.” “To have a workable succession plan you need to have good relationships within all of the family, the farm has to be profitable, and the equity level has to be in a good place. “These are all what you should be working towards for your business anyway, not just for succession. “And the quicker kids understood the meaning of words such as ‘equity’ then the better.” ASB area manager Jared Stockman said the goal of succession planning was not about assets or money or who got what. 28

“It’s about being able to sit down at every Christmas together as a family and talk openly now and into the future. “That is your goal.” He said he knew of too many farming families who were no longer speaking to one another because succession had gone badly. “And understand that the kids are not inheriting your life. Just because you’ve been through tough times doesn’t mean they should too. “The farm should not be a burden. You always want your kids to have the best life you can possibly give them. Having them on the family farm shouldn’t change that.” Making sure the balance sheet was in order, that the farm was a sustainable business, was one way of doing this. “You don’t want to give your kids a big noose around their neck in the form of debt.” Ash said the three common succession scenarios were generational succession, equity partnerships, and selling the farm. Beginning the discussion as early as possible was important. “And don’t put everyone in a room together at short notice to discuss it. “Best practice for us is to give everyone lots of time to think about what they want and then discuss it with the parents first by themselves, and then each child and their partners separately before bringing everyone together as a group later on.” The four outcomes he was looking for were an inflation-proofed, guaranteed income for the retiring parents; a plan for the children who did not wish to farm; a farming business for those who did that had a reasonable chance of success, and for all members to stay as a family. He said the aim was to sell, not give, the farm to the younger generation, and to enable the younger generation to buy it. “You must treat any farm succession plan as a business deal.” Tax implications, including GST, could mean that although no money changed

McIntyre Dick principal Ash Burdon.

hands, parents were liable for a large bill from the IRD without realising it. “Use your farm team, your accountant, your lawyer and your banker, to make sure everything is done in the best possible way for everyone.” He said equity partnerships were an answer for many farming families and non-family members could be brought into the equity if required. But the rules had to stay the same as with any equity – partners had to have a common goal, wanted to farm in the same way, and were able to work together. “If you can’t sit down with your equity partners and just talk then it’s not going to work.” Selling the farm as the succession plan should not be considered a failure as it gave all parties the opportunity to do what they wanted to do individually. “Everything can be divided up and everyone can be treated equally and fairly.” However, he added ‘equal’ and ‘fair’ were two different things and that sometimes it was more important to be fair than equal.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

BUSINESS SMASH

Southland SMASH info day a success Story and photo by: Karen Trebilcock

he first SMASH (Smaller Milk and Supply Herds) day came to Southland in mid-February after postponement last year due to Covid-19. It almost didn’t go ahead again with Auckland going into level 3 and the rest of the country level 2 the day before. But with 60 farmers attending the outdoor event, and hand sanitiser on the sign-in table, the Southland sun shone as Te Aroha sharemilker and SMASH committee member Will Rolton introduced SMASH and the day’s speakers. “It started out about 10 years ago for farmers with a couple of hundred cows and then it grew to 300 and 400 cows and now we welcome everyone even if you milk 2000 cows,” he said. “It is simply an information day held for farmers by farmers.” He commended DairyNZ for running a discussion group in Southland for farmers with fewer than 450 cows since 2016. The day was at James and Darnelle Smith’s Gorge Road farm that has 420 cows and son Hayden managing the dairy. 30

Farmers investing in houses rather than land Farmers, used to riding the capital gains wave, have switched from land to houses. Campbell Wood, of Southland-based accounting firm AgriFocus, said he had helped “a ridiculous number” of farmers, especially contract milkers, apply for loans to buy houses recently. With banks more willing to lend on residential property than cows and rural land, farmers were seeing it as a viable way to retain earnings made from farming. “We have debt-free contract milkers and sharemilkers and at the stage when they should be buying a farm they are buying houses instead,” Campbell said. “It’s not good because instead of the money being reinvested in farming, it’s fuelling the already hot housing market.” The accountancy firm, which has about 400 farming clients, for the first time last year had none of its 35 50:50 sharemilkers progress to farm ownership. It has 160 contract and lower-order sharemilkers as clients and last year only one stepped up to 50:50 sharemilking. Three were doing so this year. In Southland, DairyNZ said there were only Continues pg31 about 85 50:50 sharemilker positions left. Dairy Exporter | www.nzfarmlife.co.nz | March 2021

“When you are making lots of milk per cow, that’s when your business becomes profitable.” “For those who are smaller farm owners, these are the people who are going to be buying your farm in the future,” Campbell said. He said the situation wasn’t helped by disillusionment among contract milkers and sharemilkers about the industry. “Farm owners are becoming divorced from the realities of running a dairying business, especially when it comes to what sharemilkers have to pay as wages to staff. “Because of the minimum wage increases over the past few years, most are seeing wages as the biggest price hike for farm expenses.” Grazing costs were also going up, with May-to-May yearling grazing now costing $14/week in Southland and cows about $35/week for wintering. “Freight pushes that up to about $40/ cow/week now. “Graziers need to be paid that much to make their businesses sustainable, especially with the new environmental issues.” He said the farmers who were doing well looked at every line of the budgets and

concentrated on making the most milk per cow. “Each cow has to produce as there are fixed costs per cow. When you are making lots of milk per cow, that’s when your business becomes profitable.” Annual accounts for tax purposes were “rear-view mirror looking”, but having updated budgets showing where you were heading were what farmers should always be looking at. “Take every little bit, every line, and make it better. People who really understand numbers do best.” However, having a low repairs and maintenance budget was a recipe for disaster. “If you are not making profit then your spend on R&M will be low and that is a downwards spiral that is hard to stop. “It means you’re not looking after your dairy plant and your effluent and everything else, which means your farm will be harder to sell when the time comes.” Farm owners could help contract milkers by offering them smooth monthly

Campbell Wood of AgriFocus.

payments for the first season. “They used to be able to get overdrafts easily from the bank but that isn’t happening any more and many contract milkers are embarrassed to ask for it from farm owners. “But it’s in the farmer’s interest to do it. You don’t want your lower order sharemilker or contract milker going bust doing the hard graft on your farm.”

Ways to improve in-calf rate

LIC senior reproduction solutions advisor Jair Mandriaza. Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Farmers should look at their calving pattern to target cows most at risk of not getting in calf. LIC senior reproduction solutions advisor Jair Mandriaza said cows that calved late, within two weeks of the planned start of mating, had about a 40% chance they would end up empty and be culled by the end of the season. “Looking after those cows well improves their chances,” he said. Cows that calved in the first six weeks had only about a 15% chance they would be empty at the end of mating. Age also affected not-in-calf rates

with cows nine years and older having a 31% chance of being empty. “Cows nine years and older are a handbrake on your reproductive performance.” He said farmers should categorise their empty cows by age, calving pattern and BW to find where the weaknesses were. Cows in the bottom quartile of BW in Southland had a 19% chance of being empty, while those in the top quartile were at 13%. He said looking at lactation worth (LW) destroyed the myth that cows Continues pg33 31

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BUSINESS CO DIARY

milking well were hard to get in calf, with top cows having a 14% chance of being empty in Southland, while bottom cows were at 21%. Ways farmers could target difficultto-get-in-calf cows was by prioritising their feeding during winter and reducing their milking interval. “Making sure they are at the correct body condition score is the best thing you can do.” Although farmers had been targeting six-week-in-calf rates, the national results were following the annual fluctuation of the dairy payout. “This year, with a better milk price, we expect to see it up again,” Jair said. Empty rates have been increasing throughout the country due to farmers mating for less time. “Every week you continue mating, whether by AI or by using bulls, decreases the empty rate by one to two percent. “If you cut your mating from 15 weeks to 11 weeks, which is what is happening on many farms, then expect an empty rate four to eight percent higher than what you’re used to.” He said looking after young stock well was the best thing farmers could do to improve their in-calf rates. “Puberty is dictated by live weight so if your rising ones and twos are not hitting their targets then they will be harder to get in calf.” Figures showed that while calves usually made the 100kg weaning weight easily, it was an uphill battle after that with some losing weight in their first winter, he said. “Invest in your young stock.” He likened mating performance onfarm to the Prada Cup yacht racing in mid-February, which he had been watching on television. “The races are being won in the starting box, not out on the race course. It’s the same with your herd. “If you don’t win the start with your young stock, you are never going to catch up.”

Being a good boss Words by: Keely Sullivan

e are approaching the start of a new season, where many of you will be getting new staff members or changing farms. This can be a busy time of the year, but it is also a good time to reflect and celebrate what has gone well over the past 12 months and consider what could go better. Over the past year, we at DairyNZ have been running the Good Boss campaign. We know that most dairy farmers are good employers, something we think is worth celebrating. I may not be a boss myself but, as an employee, having a good boss completely changes how you feel about the job. It can make you more engaged, willing and loyal, even during the busy times of the year. Being a good boss doesn’t require big changes to how you manage your team, because there are lots of little things that can make a big difference to attitude and morale. For me, the key to being a good boss is excellent two-way communication between you and your employee. It makes a big difference when I feel listened to and appreciated by my boss. This can be done in a few ways. One of these is to have regular catchups with each team member. When you get busy it can be easy to push these to the side, to finish other tasks around the farm. These meetings don’t have to be formal – you can take a farm walk or cups on alongside your staff and catch-up one-

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Keely Sullivan, DairyNZ consulting officer for West Otago/Gore

to-one at the same time. Having regular team meetings is also important because it keeps everyone up to date. Discuss what is happening around the farm and any issues, but don’t forget to chat about things outside of work too. Knowing your staff members’ interests can be great conversation starters or give you insights into what they enjoy. Opening the lines of communication can help boost engagement and result in an increase in performance. It can also help you understand how team members can be helped, including training and development. Go online and compare yourself, or your boss, with the top behaviours of successful farm bosses at dairynz.co.nz/goodboss • Keely Sullivan is a DairyNZ consulting officer for West Otago/Gore. 33

SYSTEMS RENEWING DROUGHT PASTURES

Primed for production Words by: Chris Neill

ill and Marianne Tye have established themselves as Northland dairy farmers at Awanui, 9km north of Kaitaia. They have built their business by purchasing small dairy farms which were no longer sustainable and introduced their knowledge, determination and mahi (work) to create a profitable enterprise. Their combined business employs four permanent staff as well as the couple. The first farm, Willmar Farm Partnership is 225 hectare effective platform, on the river flats plus a 30ha runoff. They milk 620 cows, spring calved, twice a day all season. Originating from two farms, they utilise both sheds and milk as two herds of 220 and 400 cows. Retaining and operating the two herringbone cowsheds (18-aside and 20-aside) was determined to be more economic than building one large new one. Will and Marianne also find it easier to get staff who are able to operate the smaller herds and they anticipate in the long run it will offer greater flexibility for land-use change. Willmar Farms produced 235,000kg milk solids last season, despite the drought – down about 5% on the previous season. They have also lifted reproductive performance to 78% in-calf at six weeks and 8% late or empty. The most recently acquired farm is in a separate company, Jersey Made Ltd and adjoins Willmar Farm. It is 173ha effective platform, all flat plus 40ha runoff. This season it is 475 cows, spring calved, milked once a day all season, milking through an old 20-aside herringbone refurbished to create a 40-aside shed. It is in its first year post-conversion from beef and on track to produce 135,000kg MS. Reproduction results of 74% in calf at six weeks and 12% late or empty are seen as a reasonable starting point. Next season, Jersey Made will change to 435 cows TAD. With the planned changes and consolidation of the management systems, Marianne and Will expect to lift production to similar 34

Will Tye with the cow herd on the summer turnip crop.

levels as Willmar Farm. Will and Marianne have brought together small, adjoining, low producing farms with kikuyu pastures and they are focused on improved pastures and grazing management to lift production. Transition on Willmar Farms has gone from 55,000kg MS on kikuyu only under previous owners, 135,000kg MS on kikuyu plus Italian ryegrass, to 235,000kg MS on improved pastures plus a 60ha increase in platform area. The drought of 2019/20 started for Will and Marianne in November 2019 and relief came with rain in late April 2020. They focused on protecting cow condition and milk production by introducing palm kernel, using one tonne per cow with 50% on contract and the balance bought on the spot market. They don’t want to contract palm kernel excessively in case of drought, preferring to have a broader strategy that incorporates purchased and home-grown feed. As part of that strategy, they are now growing maize as a buffer for palm kernel extract to keep milk within FEI limits. As it was for many parts of the country, the 2019/20 drought demanded responsive

management to maintain a profitable business. (See box p35).

LESSONS LEARNED Lessons learned from the experience are already incorporated into Will and Marianne’s business. The key points for them are: • Using summer crops to balance out FEI is more cost-effective than buying feed mixes. • Growing maize for silage increases the capability to use palm kernel without FEI issues. • Feed costs were high and production was back in the drought year, but looking after the cows protected income and cow condition for the new season. • With a good milk price and close management, the business was profitable despite the drought and financiers like to support profitable businesses. Pasture is the primary feed supply for the Willmar and Jersey Made farms as it is the lowest cost feed available. Perennial rye pastures are expected to provide seven years at 12.5 tonnes DM/ha/yr of grazing before regrassing. Typically, it fits the milk

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Right: Kikuyu dominant pasture to be sprayed out and put into the crop rotation.

production and rainfall cycles for this farm. Newly sown pastures are carefully managed in their first year to establish a strong sward. Extreme dry seasons are challenging the plan, opening up the pasture and allowing kikuyu to invade and dominate the pastures early. Permanent pastures opened up to 50% ground cover by drought are oversown with Tabu to increase sward density and slow kikuyu infestation. Will estimates production of these pastures is compromised by around 20% and anticipates oversowing Tabu may become an annual commitment to propping up these pastures for two to three years. At a cost of $700/ha to establish permanent ryegrass pastures, achieving seven years of productive life is important for business profitability. Kikuyu with Italian oversown annually will produce 10t DM/ha/yr. The growth period is limited and restricts production, particularly in the shoulder periods. The palatability of kikuyu is high for two weeks post-rain then diminishes as the volume of stolon increases and metabolisable energy (ME) drops. Will estimates it to be 30–40% less than the perennial rye. Will and Marianne use a cropping cycle that takes 14% of the farm out of pasture each year. The target is for 5% of the farm to be in maize with an expected yield of 20t DM/ha, and 9% of the farm in summer turnips or kale with an expected yield of 12t DM/ha. Their cropping programme has three steps, intent on taking out kikuyu: March - Spray kikuyu paddocks and direct drill annual rye (Tama preferred as it is low cost). September – Spray annuals and kikuyu, cultivate and sow crops (turnips/ kale/ maize). March – Spray for kikuyu regrowth and direct drill perennial rye. On Will’s wish list is a cost-effective spray that selects kikuyu and leaves the permanent rye, allowing him to drill permanent seed to maintain his pastures. Will and Marianne intend to become

strategic managers within three years and employ three farm managers. This process starts now with hiring staff who they believe have the potential to manage. Next steps will be splitting Willmar Farms to have each of the three sheds operating under a sole charge manager. Each farm will have designated land and water resources, giving the managers a greater sense of ownership. One of the Willmar herds is changing to autumn calving. This move is both economic and emotional because Will and Marianne don’t like seeing a young cow culled that has slipped her calf due to environmental challenges. It also has smaller efficiencies such as relieving pressure on calf rearing facilities and will take some production risk out of the business for the next drought. Feed pad and stand off pad will be established this autumn to minimise potential cow welfare and environment management issues related to winter milking. Will and Marianne have found a place at Awanui where they enjoy farming. With a target of 10% return on assets, clear strategic goals and management systems that are sufficiently robust to meet the challenges of extreme drought. Their commitment to learning and being successful has been complemented by connecting Dave Gray as their mentor farmer. They are now comfortable to pass their learning on to other farmers addressing the challenges of dairying.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

DROUGHT OF 2019/2020 Will and Marianne’s response focused on both pasture and cows and the profile of the event was: Up to November 2019 • Feeding 16kg pasture • 25 day round • 4.1 average body condition score • Priority – produce milk From November • Rapidly reducing pasture, summer crop and increasing palm kernel • Went to 40 day round • Priority – produce milk From February 2020 • Feeding 3kg pasture, summer crop and palm kernel plus maize • Went to 60 day round, introduced maize • Priority – keep pastures alive and hold production From May • Feeding 3kg pasture plus palm kernel plus maize • Went to 130+ day round • 3.8 average BCS • Priority – build cover and raise average BCS to target of 5.0 By 1 July (Planned start of calving PSC) • Built covers to 2500 for calving • Raised average BCS to 4.7 • Contained physical and financial drought costs within the season

SYSTEMS REDUCING N LEVELS

Left: Graham Kerr, Allister Moorhead and DairyNZ principal scientist David Chapman – measure, monitor and check out the DairyNZ Forage Value Index.

Ryegrass to the rescue

Tetraploid ryegrass and clover could be a godsend for reducing nitrogen levels in Canterbury. Anne Lee reports.

etraploid ryegrass varieties and clover will both have an increasing role to play in the near future as farmers strive to reduce their environmental footprint, experts say. Barenbrug marketing manager Graham Kerr told the Lincoln University Dairy Farm (LUDF) focus day that when thinking about what to sow, the first consideration is what type of system farmers want to run. Given regulatory pressures, it is likely 36

farm system shifts will lead to a lot more tetraploid cultivars planted in Canterbury – whether as a mix with diploids or on their own as the ryegrass component of the sward. “I think we’re going to have to go that way, they’re going to be a godsend in terms of reducing nitrogen footprint as part of a whole farm system change.” Graham says the ability to graze tetraploids at higher pre-grazing covers

and still achieve target residuals allows increased intake of high-quality pasture and can help farmers extend their grazing round. That can enable farmers to reduce stocking rate while maintaining production or minimising total production losses and protect profitability if they manage the pasture and system well. Fewer grazing rounds can mean fewer nitrogen applications and a lower stocking rate can mean fewer urine patches. This can go some way towards reducing methane emissions. The farm team at LUDF used tetraploids to achieve a lighter environmental footprint sowing them in a mix with a diploid. Stocking rate was reduced and a higher average farm cover and higher pre-grazing covers were run, enabling an extra 1.1t drymatter (DM)/ha/year. However, Graham had some cautionary advice for farmers using tetraploids. “Tetraploids need more grazing management – you have to manage them well because when you’re running higher covers and grazing at 3400kg DM/ha, surpluses happen more quickly.” A weekly farm walk is key to responding quickly to growth rate changes. Italian or annual ryegrasses can offer cool season growth and produce spectacular tonnages in a short time but they also run out quickly. Persistency rankings increase for ryegrass as you go from Italian to hybrids to tetraploid to diploid/tetraploid mixes to diploids. However, cool season growth and establishment speed rankings decrease. On support blocks, farmers could consider persistent perennials such as new cultivars of cocksfoot or spreading perennial ryegrasses such as Rohan. These can work well on dryland blocks where there isn’t the grazing pressure of a milking platform. The DairyNZ Forage Value Index (FVI) is a good starting point for farmers with cultivars scored based on production, quality and seasonal growth.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Graham Kerr – tetraploids could be a godsend.

CLOVER ALL OVER

Agricom product development specialist Allister Moorhead told farmers that it used to be increasing milk production was at the top of his list when it comes to increasing legume content in pastures. “You can measure milk solids movement in your vat with percentage changes in white clover (in the paddock) that we would struggle to see by eye.” Next on his list is ease of grazing management – as clover increases, its palatability makes it easier to achieve residuals. Third on the list would normally be nitrogen fixation. However, the world is changing and in a world of nitrogen limits it is rising up the priority list, he says. As fertiliser nitrogen drops, clover content will naturally increase and at times when ryegrass is struggling due to higher temperatures, it will come into its own. With low levels of fertiliser nitrogen, clover content will naturally cycle up and down. As clover “feeds” the ryegrass, the ryegrass will begin to dominate until it reaches the point where it’s used by the freely available nitrogen fixed by the clover. Then the ryegrass will become less dominant and the clover will have the light and space to increase again. Getting good levels of nitrogen from clover requires plenty of the legume, he says. “The basic rule is 26-28grams per kg DM of legume so to get 28kg of nitrogen you will need about 1t DM/hectare of clover.” Sowing depth is exceptionally important to get good establishment of clover, Allister says.

One centimetre is as deep as it should be sown. Clover will do better at about pH 6 and requires slightly higher levels of phosphate, sulphur and potassium than ryegrass. While the macronutrients drive production, micronutrients optimise performance with molybdenum a key micronutrient for clover. There are some compromises to be made in establishing new pasture if the aim is to get strong clover establishment. Roller drilling is ideal but it will mean slightly lower early yields from the ryegrass component. He suggests cutting diploid ryegrass sowing rates to 16kg/ha if trying to get good clover establishment. White clover should ideally be sown at 4-5kg/ha. Tetraploids should be sown at 24kg/ ha because these have heavier seed rather than the 30kg/ha advised for ryegrass alone. “Then it’s how you manage it through that first season. The first two to three grazings are extremely important because the clover plant is going to be a long way behind the ryegrass and you need to be giving it enough light to get well established. “Through that first spring it can mean more open pastures and you’re going to have to elevate your management.” Under-sowing can be effective so add clover to any under-sowing programme but plants need light and time. Broadcasting with fertiliser can work but will take 8 – 12-months before it’s noticeably present and needs careful grazing management to ensure light through establishment.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

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SYSTEMS AUTUMN CALVING

Transition to autumn calving pays off Tracee Judd and Alastair Snowden moved their herd to autumn calving and winter milking in 2018 and say the benefits have been worth it. Jackie Harrigan reports.

esponding to poor performance and falling production in late lactation, Tracee Judd and Alastair Snowdon transitioned their entire herd to autumn calving and winter milking in 2018 and say they would never go back to spring calving. The couple farm 200 Kiwicross cows at Inaha in coastal South Taranaki and say the effects of longer, drier summers and warmer winters caused them to overhaul their system. “From Christmas onwards milk solids were dropping, we were culling cows both pre- and post-Christmas and contending with skinny heifers. “Once we had fed out all our silage we were drying off by April 20 and always felt we were missing out on 30 days of lactation.” A comparison of pasture growth rates from 2009/12 and 2013/17 (Graph 1) when they started using autumn ProGibb to help recover from the summer dry highlighted to Tracee the true seasonality of their pasture growth. “With climate change, we felt we were getting longer summer dry periods and warmer winters. “The response to the ProGibb showed we were almost doubling our growth rate in the April-May period. “But what was more interesting was that growth rate in the February-March period was very similar to that in June and July – so we thought to ourselves if we calve in March and put our feed into the deficit in June-July in mid-lactation, we would get a better response from the cows rather than trying to fill the deficit at the end of the lactation. “That was really the decision we came to.” Tracee Judd on her ATV.

‘The early results from the Dairy Taranaki Trust Kavanagh farm autumn vs spring calving trial has also confirmed the advantages of autumn calving for us. It’s really encouraging.’

FARM FACTS:

• Farm owners: Tracee Judd and Alastair Snowdon, third generation, 101 years • Farm: Riverwind Farm, Inaha, Manaia • Size: 56ha eff, support block: 24ha • Cows: 200 Kiwicross cows • Stocking rate: 3.5 cows/ha • System 4, in-shed feeding Custom blend from BHL and PROLIQ

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verage growth Pre Progibb (2009-2012) 52 53.75 49 30.67 28.75 28 20.58 54.08 Graph 1: Comparison of Pasture Growth 77.92 83.67 Average growth with ProGibb (2013-2017) 90.08 73.5

Average growth with ProGibb (2009-2012)

Table 1: Transition to autumn calving 2016/17

2017/18

2018/19

2019/20

2020/2021

Last spring calving July 2016

No spring calving. Cows milked on to end of Dec 2017 (18 months)

1st autumn calving March 2018

2nd autumn calving March 2019

3rd autumn calving March 2020

Cows mated in June 2017

Cows mated in June 2018

Cows mated in June 2019

Cows mated in June 2020

with GEA CowScout collars.

TRANSITION

The cows were transitioned to autumn calving by milking through an 18-month period from spring 2016 to the end of 2017 and mated in June 2017 for calving March 2018. In the transition year 2017/18, the herd produced lower kg MS (54,000 vs spring calving production best of 82,000), which Tracee referred to as the ‘cost of transitioning’, but now the autumn calving herd is producing more than 98,000kg MS, and receiving a higher average milk income with the premiums for out of season milk. Premiums are $2.85/kg MS extra for the second half of May, $3.80/kg MS through June, and back to $2.85/kg MS for the first half of July. To ensure they had enough winter feed the couple purchased and installed an in-shed feeding system at a cost of $30,000 and started applying ProGibb and SustainN from May to August behind the cows. Nitrogen use has increased from 112kgN/ ha/year under the spring calving regime to 196kgN/ha/year under autumn calving – an increase that Tracee admitted may have to reduce under the new water quality regulations.

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Tracee and Alastair are pretty pleased with the change – while the system has lifted to a system three-four, she says it’s much more satisfying farming when they know that their cows are fully fed and happy. “It was beneficial to confirm what we thought – that changing to autumn calving would be a good move – production is up, costs are slightly higher than the benchmark group, (due to the

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•

Improve in-calf rates through accurate and timely heat detection Detect metabolic disorders early in newly calved cows Identify non-cyclers and possible slipped cows The ability to treat sick cows early, reducing vet costs and recovery times.

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Right: Tracee Judd in a riparian planting strip beside the Inaha Stream.

supplementary feed), but when we come down to operating profit we are still ahead of the game there. “The early results from the Dairy Taranaki Trust Kavanagh farm autumn vs spring calving trial has also confirmed the advantages of autumn calving for us. It’s really encouraging.”

PROS

• Much improved production and profitability • Full lactation achieved – this season all of the 195 cows were milked through to the end of the season, still producing 1.5kg MS/day at the end. • Flatter production curve – the cows peaked at 2.2kg MS/cow/day in June and held at 2kg MS/day level until October, “one year the second peak in October was higher than the June peak”. • Improved calf health, cow health and farmer wellbeing. Tracee said Alastair checks the springing cows in his shorts and jandals after lunch in March – “it is a lot better time to be calving”. • Better year-round cow condition – the cows dry off at condition score 5 all ready for calving. • Cows are always fully fed during the winter cold spells. • The calves are happier – they sit around warm and asleep and grow really well – they can be harder to catch though, Tracee laughed, because they are fast runners on the dry ground.

CONS

• Mating and heat detection in June is difficult. While the couple were used to 6-10% not-in-calf (NIC) under spring calving, their 22% NIC rate after the June 2018 mating gave them a “hell of a fright – we were shocked and went through the season with lower cow numbers”, Tracee said. She put it down to lower daylight hours and correspondingly less aggressive heats. “This can be a major cost and difficult to overcome.” The couple have overcome it though, by 40

Table 2. What happened to milk production? Spring average

Spring best

2016/17

2017/18 (transition)

2018/19

2019/20

2020/21

Total kg milksolids

76,000

82,000

84,000

54,000

91,000

87,000

98,000

Milksolids kg/ha

1357

1464

1500

964

1625

1553

1750

Milksolids kg/cow

4100

432

442

300

479

483

503

Cow numbers

190

180

190

180

195

Table 3. Key performance indicators 2019/20 season

Riverwind Farm

Autumn calving farms - Dairybase

Spring calving farms - Dairybase

Gross farm revenue $/ha

12,837

11,919

10,466

Operating expenses $/ha

8307

8139

7508

Operating profit (EFS) $/ha

4530

3779

2958

Gross farm revenue $/ha

8.06

7.89

7.65

Operating expenses $/kg MS

5.22

5.39

5.49

Operating profit (EFS) $/kg MS

2.85

2.5

2.16

making sure there is a dedicated person in the shed picking heats, even when the tail paint is only slightly faded or rubbed. In 2019 they achieved 10% NIC and in 2020 14%, with a reduced 10-week mating period – five weeks of AI and five weeks of bulls. A possible solution would be to use technology for heat detection, either the boluses or collars. • An intense period of tractor work from May to August applying ProGibb and SustainN, which Tracee says is Alastair’s

job, and he gets pretty tired driving round and round in circles after the cows. • Good track condition and maintenance is essential to minimise lame cows, Tracee says. In their first year of autumn calving they had more lame cows than usual, but the tracks have been upgraded and are now like main highways so lameness has reduced. “You have to get used to muddy, messy and weedy gateways too – you can live with them as long as they are not causing lameness.”

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SYSTEMS REGEN TRIALS

Transitioning to regen practices Align Farms is in the middle of transitioning to regenerative pastures on two of its farms. Anne Lee is following the transition.

ust like any significant pasture renewal programme, transitioning to regenerative pasture has its challenges. Align Farms is in the midst of establishing half of its 296ha Clareview farm near Ashburton and half of its 283ha Longfield farm near Hinds in regenerative species. The move is part of a side-byside comparative study that will run regenerative farming practices alongside conventional at a commercial scale. The aim is to gather robust data on soils, pasture production, milk production, animal health, the environmental footprint, and importantly the financials. 42

Align chief executive Rhys Roberts says the transition, which is still in progress, has already created some learning opportunities. “Our original plan with transitioning the farms was to run every paddock through an annual soil primer crop before the permanent diverse perennial pasture is sown.” The primer crop is the ‘poster paddock’ of regenerative farming – plenty of sunflowers and Instagramable flowering plants. It can include about 24 species and its job under the regenerative philosophy is to ‘prime’ the soil to help create a soil environment that enhances soil biology. “Some of the plants in that mix have

We’re following Align Farms’ regenerative study and will bring you regular updates on what the team is learning and results of the study. Take a look back at our Dairy Exporter December 2020 issue for more detail on why and how the study is being set up. We’d love to hear any questions you have for the Align team. Email: anne.lee@nzfarmlife.co.nz long taproots that punch down and help aerate or break up compacted soils, some scavenge for minerals and bring them up to make them available to other plants through the grazing practices that leave a fair bit of the drymatter behind through

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Left: Clare Buchanan – increasing the fungi at work in the soil is an aim.

high residuals and trampling it back in. Others are legumes that fix nitrogen,” he says. The initial primer crop costs Align about $500/ha – made up of $300/ha in seed cost, $150/ha to drill it and $50/ha to spray out and terminate the previous pasture. Align’s head of environment and innovation Clare Buchanan says that based on research and others’ experiences, the primer crop step could be skipped on some of its paddocks. “We think it’s still going to be necessary on paddocks where soils that have been heavily cultivated over time or soils that are compacted and badly pugged. “But on soils where there’s been minimal cultivation and soils that have already been in permanent pasture and are in good condition, we could go straight into the diverse permanent perennial,” she says. “From a commercial aspect it can be

Transitioning to regen – the primer ‘poster crop’ of regenerative agriculture, left, might not always be necessary to get to the permanent diverse pastures, right – this one is 14 days post grazing and will look a lot more diverse by the time it’s ready to be grazed at 30 days post grazing.

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‘Our original plan with transitioning the farms was to run every paddock through an annual soil primer crop before the permanent diverse perennial pasture is sown.’ All shapes and sizes - the diverse perennial seed mix.

expensive if you’re trying to do big areas like we are to transition and it can put a strain on feed supply to have big areas out for the length of time it takes to get the full benefit of the initial primer crop,” Rhys says. “We think we can skip that step for paddocks that are in good condition but stick with it on paddocks that have compaction or pugging issues. “Having some paddocks still going through the primer crop is going to help the transition because once it gets to high covers, and you get a lot of bulk, we can use it as an on-off crop through the later summer to help extend the round,” he says. Kiri Roberts is the farm manager at Clareview. She’s been implementing the practical side of transitioning and brings cows onto the primer crop that can be from 6-10t DM/ha, from thigh to almost chest height and filled with flowering herbs, grasses, legumes and sunflowers. Kiri brings the herd in for two hours at a time each day and estimates cows are getting about 4-5kg drymatter (DM) each. “That means 4-5kg DM/cow less demand on the perennial pasture,” Rhys says. Quality tests show an average of about 10 megajoules of metabolisable energy (MJME) per kg DM with higher quality at the tops of the plants of 11-12 MJ ME/kg DM decreasing down through sometimes stalky bases. The primer crop is sown in October and takes about 100 days to get to a 10t DM/ ha crop. It’s grazed through February and then 44

direct-drilled into the perennial mix in March, but isn’t likely to be grazed until the following spring given pre-grazing covers in regenerative pastures are much higher than conventional ryegrass white clover paddocks. “That means that apart from the grazing through February that area is out of the grazing rotation for 10 months, and on a commercial dairy farm, if you’re trying to transition to this system over two or three years, then that’s not going to work,” Rhys says. The team is putting the direct shift to perennials for some paddocks to the test, with some of the paddocks it still has to transition going straight into the diverse perennial mix this season. That mix has varied slightly over the past year and has come at the suggestion of others already farming using regenerative principles in New Zealand. Last year the mix that followed the primer included up to 16 grasses, herbs and legumes including plants such as radish, ryecorn, chicory, plantain, ryegrass, strawberry clover and sheep’s burnett. This season the mix and rates going straight in without a primer crop include 12 species at a total rate of 30kg/ha. The varieties include: • Timothy • Cocksfoot • Ryegrass • Prairie grass • Meadow fescue • Grazing brome • Red clover • White clover • Sheep’s burnett

• Plantain • Chicory • Phalaris The variation in rates is more of a reflection of seed size than final densities, so grazing brome for instance won’t be the main species in the resulting pasture. Conventional paddocks are sprayed out with glyphosate and drilled the same day. They’re no longer using conventional fertilisers on the regenerative paddocks and include 10 litres/ha of liquid Bio Marinus Hydrolysed Fish Fertiliser and 5l/ha of Effective Microorganisms from (EMNZ) mixed in with the glyphosate spray. According to the EMNZ website and product labels, the EMNZ mix contains a proprietary blend of soil microorganisms that when applied to the soil act as a probiotic for the soil. The fish fertiliser is manufactured in New Zealand from fish offal and blended with seaweed and humates. Following sowing the soil primer crop receives two applications of fish fertiliser and effective microorganisms at the 10l/ ha and 5l/ha rate respectively – one application when the crop is halfway up the Red Band gumboot and once again when it’s at knee height. The permanent, perennial, regenerative pastures receive the same mix, applied after every grazing. On the regenerative pastures round length can vary from 28 to 35 or more days. An annual dressing of mushroom compost is also applied to the whole farm. They still use urea on the conventional areas of the farm with the annual nitrogen input cut back to 190kg

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N/ha/year. On the regenerative area Rhys estimates total nitrogen inputs will be 34kg N/ha this season. We’ll take a closer look at the regenerative fertiliser practices in a future issue.

LIFTING FUNGI LEVELS

A powdered product containing Trichoderma fungi is added to both the soil primer and permanent diverse perennial seed mixes at a rate of 200g/ ha. Trichoderma are used in the forestry sector and have been proven to improve growth rates and disease resistance for new trees. The fungi act in a symbiotic way keeping harmful fungi at bay and enhancing root and soil interactions. Clare says one of the aims of the regenerative practices on their pasturebased systems is to get fungi and bacteria ratios in the soil closer to a 0.7:1-1:1 ratio. That means increasing fungi levels in their soils. She estimates they’re a

about 0.3:1 in favour of bacteria. “An increase in mycorrhizal fungi in the soil is beneficial as those fungal networks create beneficial symbiotic relationships with the roots of the plant, which extends the area in which a plant can access nutrients from the soil. This can reduce the need for inputs and also increase a plant’s resistance to disease,” she says. All of that is said to lead to healthier plants and also create better nutrient cycling for soil critter biology. To study if these kinds of outcomes are really occurring in the regeneratively managed pastures and soils the Align team will have three different kinds of soil biology analysis carried out. A soil food web approach is being used along with phospholipid fatty acid (PLFA) tests that estimate the ratio of fungi to bacteria and AgResearch will look at nematode populations, also as a way to estimate fungi and bacteria.

Rhys Roberts – testing a direct transition to diverse perennial pastures.

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Salt may be one of the most cost-effective methods of increasing production. Research1 has shown that sodium supplementation can give a significant production response. THE KEY CONCLUSIONS ARE THAT: • Sodium in some form should be available at all times all year round • Dairy cows’ salt requirements increase significantly when lactating as large amounts of sodium are excreted in milk • Young animals in rapid growth need sodium for new tissue formation • Appetite suppression is linked to sodium deficiency

original

THE MAIZE BALANCER

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Dairy Exporter | www.nzfarmlife.co.nz | March 2021

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SYSTEMS ALTERNATIVE PROTEIN COMPANIES

Innovative food for thought Words by: Anna Campbell

nvestment into innovative food companies during the first half of 2020 was greater than the full 2019 financial year. Topping the list for investment was alternative protein burger company Impossible Foods who raised US$500M (NZ$689.9M). The top 10 also included MycoTechnology (raised US$39M/NZ$53.8M) who are developing proteins and ingredients from a mushroom-based fermentation process and Good Catch (raised US$32M/ NZ$44.2M) who are producing plantbased seafood analogues. The only non-US company on the list was YFood (raised US$17M/NZ$23.5M), a German company producing ‘complete meal’ drinks, powders and snacks – Fonterra is one of YFood’s investors. It’s fascinating to read about these companies to get a feel for what is going on in food innovation and how the companies tell their stories. Generally, there are ‘save the planet’ and ‘health’ themes in their marketing material and like any traditional food producers, any kinks in their message will be jumped on by consumers. Oatly is a Swedish company producing oat-based milk products high in betaglucan, a soluble dietary fibre linked to improving cholesterol levels. Oatly raised US$200M (NZ$276M), however the investment group was led by Blackstone, an investment company with alleged ties to deforestation in the Amazon. Activist consumers have taken to Twitter stating they won’t be buying Oatly products and why. Oatly has responded (on their website) that sustainable companies have only been able to access a small proportion of investment capital and this path leads the way for investors like Blackstone to put more of their dollars into sustainable companies. All is not well within the alternativeprotein sector either; there is a war of 46

words going on among Impossible Foods, Beyond Burger and Lightlife Foods. Lightlife Foods is a relative newcomer to the alternative protein space but has not held back in an open letter to the New York Times where its president, Dan Curtin, wrote “Enough with the hyper-processed ingredients, GMOs, unnecessary additives and fillers, and fake blood… while we want the same things – a greener planet and a more sustainable food system – at Lightlife, we’ve chosen a very different way to get there. We’re making a clean break from both of you ‘food tech’ companies that attempt to mimic meat at any cost.” Analysts who have dissected the plant burgers from all three companies state they are similar from a health perspective, despite Lightlife’s belief that because their products are less processed, with fewer ingredients, they are more healthy. No wonder consumers feel overwhelmed! There is no doubt that big-food businesses are some of the greatest culprits in terms of environmental mismanagement and negative impacts on our health. A Food Navigator report on plastic pollution accuses the biggest plastic polluting companies, Unilever, Nestle, Coca-Cola, Danone, Mars, PepsiCo and Mondelez of hypocrisy for having plastic reduction commitments in geographies where it suits them, yet pushing singleuse plastics in countries like India, the Philippines, and Asia. I don’t think any company starts off wanting to pollute the planet or adversely affect people’s health, but money talks and when investors come into the picture or when companies launch on the stock exchange, profits are most often the primary driver of success. Perhaps Oatly is right in its position and by ‘dancing with the devil’ they can lead change – or perhaps that is wishful justification

on their behalf. Ultimately, the greatest challenges lie with us as consumers. We need to hold all companies to account, the new food companies alongside existing players – we must ask for evidence and not allow ourselves to be green-washed or carried along by the hype. It’s also really important those ethical companies genuinely making a difference are given credit for what they are doing. It is hard for these companies to compete price-wise with companies that continue to push cheaply packed goods and overlyprocessed food. We need to ask ourselves, at what point are we willing to buy fewer products, at a higher price, to make a measurable impact? • Anna Campbell is managing director of AbacusBio, a Dunedin based agri-technology company. • First published Country-Wide March 2021.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

SPECIAL REPORT

ADDING VALUE TO DAIRY IN-MARKET VALUE FROM VALUES ON FARM

48 Organics a way of life

52 Do the compliance, get the treats

54 The sharp end of success

57 Getting farmers on the pathway to success

59 Co-op’s commitment to continuous improvement

60 Adding values to exports

61 App gives real-time milk quality data

62 Culture to the core Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Craig and Stephanie Maunsell with daughters Keeley (left) and Teagan – organic farming is a way of life.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

SPECIAL REPORT

ORGANICS A WAY OF LIFE The birth of their twin daughters 13 years ago got Craig and Stephanie Maunsell interested in making their farm a safe place for humans and animals, setting them down the path of organic farming. Anne Lee reports.

hey don’t do it for the premium, it’s certainly not what drives them, but organic dairy farmers Stephanie and Craig Maunsell say it goes a long way to helping their low intensity farming operation be a sustainable family business. They’d been concerned at the outset of the Covid-19 pandemic that an economic downturn would follow and people wouldn’t be able to pay for organic products in key offshore markets. “But it looks like demand has actually increased as people become focused on their health and want to know where their food comes from,” Stephanie says. The couple milk 230 cows at a stocking rate of 2.1cows/ha with just part-time help a couple of times a week. “We’ve taken the pressure off the cows, the environment and the people – us,” Stephanie says. The pair started looking at farming differently just after their twin daughters were born 13 years ago. “I guess it was when the girls were very young and were with us out on the farm quite a lot. “We wanted them to be able to roll around in the grass without worrying about chemicals, we wanted it to be a safe, healthy place for them,” she says. Stephanie was also embarking on a degree in natural medicine and they were looking closely at their own health. For them, it just made sense to carry that thinking through Dairy Exporter | www.nzfarmlife.co.nz | March 2021

to how they farmed. They started using natural health products for the cows and have never used urea. Craig had leased a runoff from his uncle years before and he had stipulated no urea as part of the lease because he saw it as poison, Stephanie says. They were also won over by alternative fertiliser practices after buying a block 13 years ago from an elderly neighbour who had put on very little in the way of fertiliser, apart from dolomite. “We had to do a lot of fencing on the place when we bought it and when we were digging in the posts, we couldn’t get over the worms and deep, rich soil – you felt guilty putting the spade in the ground – it was moving there were so many worms.” It made them reconsider what they were doing on their farm and they shifted to using dolomite and the Albrecht Kinsey method for fertiliser recommendations. “We started to see changes here – paddocks were draining better, we had more soil biology, a lot more worms and the grass was growing better,” Craig says. They don’t use superphosphate and instead use slower releasing reactive phosphate rock (RPR) and guano. Stephanie says that contrary to common beliefs, organic farmers do use standard fertilisers which bear the certified organic tick. Fertilisers such as sulphur bentonite, potassium sulphate, cobalt sulphate and other trace minerals such as boron and selenium are used but Stephanie and Craig use no nitrogenous fertiliser. They’d also started using more diverse pasture mixes and about six years someone suggested that with all they were doing on the farm they should look at becoming certified organic. “One of the biggest hurdles though for doing that was animal health and mastitis. “We didn’t have a problem with mastitis but I didn’t know what you’d do about it if you had cows with it so I started doing research.” 49

Far left: Native plantings make great shelter and offer natural remedies too. Left: It takes three years to get full BioGro certification for a Fonterra contract. Below: Koromiko is used as a natural remedy for animals and people at the Maunsell’s farm.

FARM FACTS Farm owners: Craig and Stephanie Maunsell Location: Otaua, near Waiuku Area: 97ha milking platform Support block: 45ha leased Cows: 230 cows – Friesian cross Production: 85,000 MS/year Farm dairy: 30-aside herringbone Supplement: Nil bought in – silage from surpluses on milking platform fed back during deficits and to extend the round. Farm working expenses: $3.70/kg MS

“Once I started using alternative methods on cows showing any symptoms and they worked, we thought ok – let’s go for certification,” Stephanie said. They did one season of the transition on their own and then as Fonterra suppliers were able to take on an organic contract. “The whole community of organic suppliers really throw their support around you and Stuart Luxton (Fonterra’s organic supply manager) has been fantastic. “When we went along to discussion groups we got so much help from others in the group – we had so many questions and there were always people willing to give you advice from their experience.” The certification process and annual auditing is extremely stringent. “One of the best pieces of advice we got from Stuart and others right at the outset was to always seek permission and never redemption because redemption is never given. “If we’re ever looking at using something new and it’s not already on our approved list we put a query into Biogro and they come back to us very quickly. “And that’s the advice I’d give to anyone else – always check and then double-check

what you receive in an order or buy is that approved product. “Read the labels, check and doublecheck.” Most of their animal health remedies come from Homeopathic Farm Services and True Health. Phyllis Tichinin and US-based vet Dr Paul Dettloff from True Health have given advice, with Paul visiting New Zealand and speaking to Fonterra’s organic suppliers on a number of animal health issues. The tinctures and remedies often include traditionally used plants and plant extracts such as garlic, eucalyptus, echinacea, goldenseal and even a traditional Native American remedy Poke oil from Phytolacca used for udder health. They’re now in their second season as certified organic suppliers and Stephanie says they’ve never had a cow needing emergency veterinary treatment for mastitis, or any deaths from it. “We strip a different quarter each milking before cupping cows to check for any early signs of problems so we can be straight onto it early. “Normally I’ll use a product called Savvy Udder – which has nine essential

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

13-year-old twins Teagan (left) and Keeley Maunsell – the girls were a big reason behind the decision to go organic.

oils in it – and that takes away swelling and inflammation. “We also use a tincture that we administer through the vulva – as it’s absorbed through the mucous membrane. “Occasionally we’ll take a cow out of the herd and put a couple of beef calves on it if it’s in the spring, but just like a conventional farmer if a cow needs antibiotics we’d take her out of the herd and treat her. “Animal welfare is at the absolute top of our priority list.” Their bulk somatic cell count averages 150,000 cells/ml, and even though that’s still great quality milk, it’s something Stephanie took a bit of getting used to. “We were used to sitting around 60,000-70,000 and we’ve got a drawer full of certificates but I think we have to look at things a bit differently and that’s a natural response. “Overall, I think our animal health has improved. The cows get a mixture of apple cider vinegar and triple strength garlic in the trough to help with their immune system. “We boost it and give them a bit more at this time of the year because we find it helps stop the flies biting them. “The flies are still there but they don’t bite them and bother the cows so we’re not getting cows kicking off the cups or getting agitated. “Conventional farmers around here use it too.” Calves are orally drenched monthly with a herbal digestive drench from Homeopathic Farm Services that contains

remedies such as garlic, Harakeke, Kormiko, black walnut, wormwood and seaweed. “We get (nutritional) scours in the new calves sometimes but I use Koromiko leaves. I either rip a few up and put them in the calf’s mouth and then put it on the calfateria to get it to swallow them or chop up the leaves and make a tea and put that through the feeder. “It’s high in tannins and really works well. I use it on the kids too if they get a stomach upset or a 24-hour bug.” Calves also get a mix of kelp, humates and hay along with milk and ad lib water. “What you find with any of these things – whether it’s the calves or udder health in the cows – is that you have to be observing all the time. “You have to watch each cow every day and really know what’s normal and what’s not for each animal. “Where a conventional farmer might drench the calves every six weeks to a couple of months, we’re doing it every month on the dot. “For us there’s often no quick fix, no pill you can give straight away, so we’re more about prevention, being really observant and keeping up with the things that keep up a strong immune system,” Stephanie says.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

The couple are strong believers that good health starts with the soil and they’re focused on creating great soil ecosystems where nutrients are cycling thanks to soil biology. “We’re extending the effluent lines so we can spread effluent across more of the farm because that’s a great way to get nutrients back into the soil and should help reduce fertiliser bills. “We’re also sowing more diverse pastures – including some plants that are more deeply rooting,” Craig says. The pasture mix included ryegrass, white clover, red clover, medic (legume), cocksfoot, Timothy, plantain, chicory and lotus major. This season they’re sowing a AgriSea Mix from AgriSea and Wesco Seeds that includes a blend of three white clovers, three red clovers, prairie grass, ryegrass, rocket, chicory, sub clover, Persian clover, fescue, phalaris, plantain and medic. “I think the diverse mix including deeper rooting plants is helping get at Continues pg52

SPECIAL REPORT

DO THE COMPLIANCE

GET THE TREATS

Words by: Anne Lee armers shouldn’t find Fonterra’s new Cooperative Difference payment creates a lot of extra compliance effort, Farm Source group director Richard Allen says. “There will be some additional compliance steps – you can’t get around that - but we’ve put a lot of effort into making sure we utilise existing data and

existing processes. “Farmers will find they’re already doing a number of the requirements and this just formalises it,” Richard says. The payment programme will allow farmers who achieve the standards under the four pillars – co-operative and prosperity, environment, animals, and people and community – to achieve a 7cents/kg milksolids (MS) premium payment. The payment is made in October with other retrospective payments and relates to the previous season.

An additional 3c/ kg MS will be paid for milk that meets the Excellence standard under a milk quality pillar. The total amount of money available FarmSource director for milk prices will Richard Allen. remain the same for the co-operative and the average payout determined as normal. However, those meeting the Co-operative Difference Continues pg53

From pg51

nutrients that are further down in the soil, but it’s also helping through the drier periods as well as the wetter times – we’re getting better drainage and better drought tolerance. “At the moment the cows are loving the chicory and lotus major and we’re finding that the more diverse pastures are giving us better cover through the whole season – different plants are more prevalent at different times, he says.” Last season was a record year for Fonterra’s organic farmers in terms of payout with $10.20/kg milksolids (MS). Stephanie says that although the per kg milksolids payment side of the equation is higher, like her and Craig, most organic farmers aren’t breaking any records when it comes to the kg of milksolids they produce. “Some of our costs are probably less – we don’t use any supplement for instance, except a bit of organic hay we use at dryoff – but some of our costs are probably higher. “Fertiliser for instance can be expensive. We hardly need to call on the vet, 52

Homegrown silage is the only supplement fed to the Maunsell’s herd when there is a deficit of pasture.

especially when it comes to treatment, but we do spend money on animal health as far as preventative treatments and herbal remedies go.” Overall the margin, or margin spread around the average, is likely to be similar to the margin and spread in margin for conventional farms. “People are willing to pay more for

organic dairy products and so that premium helps when it comes to running a system like this. “I don’t think anyone would do it just for the premium though, you have to be committed to the whole way of thinking, the whole holistic approach from soil right through to human health. “It’s a way of life.”

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

requirements will receive 10c/kg MS above the average. That means some farmers will receive less than the average. Richard says that as more farmers reach the standard it’s likely some of those standards will change. “We’ll continue to use this as a way to signal to our farmers what the market is requiring but we won’t be using it to create change for changes sake and we’re not going to be altering the parameters to try and achieve an arbitrary 50% pass or failure rate.” The standards will be assessed at the annual farm dairy assessments carried out by QCONZ and farmers will need to show evidence they’ve met requirements by producing things like the animal wellbeing plan required under the animals pillar. It must be developed with a vet and cover insurance, as a minimum: nutrition strategies to ensure animals reach body condition targets; strategies to manage mastitis; minimising antimicrobial resistance; lameness and mortality; planning for extreme weather events and how genetics is being used. “The framework isn’t overly prescriptive and farmers will develop plans with their vets that are relevant to their own situation. “Some of these things such as planning for an extreme weather event might not have been included in an animal health plan before but they’re an example of where we see them heading from our customer signals.” Under the environment pillar farms will require a farm environment plan aimed at achieving the plan’s goals by 2025. Richard says about 47% of Fonterra suppliers are predicted to have a farm environment plan by the end of this season. “Farmers who have signed up to have one done by Fonterra and are on the waiting list with us will still be eligible for the Co-operative Difference Payment while we work through the backlog,” he says. Dairy Exporter

Te Pūtake achievement will return 7c/kg MS and Te Puku 3c/kg MS.

Achievement under the environment pillar will also require three out of four of the following practices to be carried out: • The farms purchased nitrogen surplus is at or lower than the target which for the 2021/2022 season is 138 kgN/ha. This will be updated early in each new season. • All onfarm plastics and unused agrichemicals are managed through an approved product stewardship scheme such as AgRecovery or Plasback. • There is no discharge of dairy shed effluent to water. • 80% farmgrown feed across the season. The target purchased nitrogen surplus figure is set at the 75th percentile for all Fonterra suppliers meaning 75% of farmers would achieve the target based on the information supplied in the farm dairy records. “That’s not to say 75% will automatically achieve it in the coming year or that the 25% sitting above that last season can’t take actions to bring it down during the season.” Richard says having verifiable standards are

as much about protecting relationships with existing customers as they are about extracting value out of the market. New Zealand dairy is natural, environmentally sustainable and carbon efficient but markets want evidence of what farmers are doing to keep the sector that way. Rewarding or incentivising farmers to go the extra mile is something farmers have said they want but it doesn’t come without some level of effort. Fonterra is already going into the market and extracting extra value for specific milk streams such as A2 with about 60 farmers contracted to supply milk to be processed into A2 products for that company. They receive a 17c/kg MS premium from the A2 Milk Company directly. About 80 certified organic suppliers last year earned $10.19/kg MS for their milk – well above the milk price for the rest of the co-operative’s suppliers. “We do extract value out of the market because of the way we farm here in New Zealand – you can see that in the GlobalDairyTrade auctions but we do need to protect that.” It also returns value for consumer goods and value add products through the dividend. 53

SPECIAL REPORT

THE SHARP END OF

SUCCESS Investing in animal health, social responsibility, milk quality and the environment has paid off for a Canterbury farming family. Anne Lee reports.

here’s no getting around it – achieving Lead with Pride certification takes a lot of work but it’s an effort a Canterbury farming family says is worth it and that’s not solely because of the extra payment they receive. Rick and Diana Bourke, along with their daughter Sara Russell and her husband Stuart, achieved Synlait’s Lead with Pride Gold Elite certification for their Longbeach farm back in 2017. Sara and Stuart are 50/50 sharemilkers for Rick and Diana on the 730-cow farm Sara’s parents converted in 2007, originally supplying Fonterra but switching to Synlait in 2016. Lead with Pride had been launched by the company in 2013 and, while it wasn’t compulsory for new suppliers as it is now and the incentive payments were less than half of what’s available now, the family could see its benefits. “We worked on the Lead with Pride certification before the start of the season so I think we only had one pick up in spring of that first season before we were certified Lead with Pride Gold,” Sara says. They were among some of the first farms to achieve the standard and Sara says they got a huge amount of support from the company. It was a novel concept but one they saw could not only give them a premium on their milk price but also help them set up systems and identify some wins in terms of efficiency. It meant writing standard operating procedures (SOP’s) for activities within Lead with Pride’s four pillars – animal health and welfare, social responsibility, milk quality and environment. “That took quite a lot of work but it does make you talk about exactly what you do and why and there were a few things where we changed what we were doing,” she says. Within the pillars there are numerous Left: Sharemilkers Stuart and Sara Russell and their daughter Margaret Russell together with farm owners and parents Rick and Diana Bourke. The family worked hard to achieve Synlait’s Lead with Pride Gold Elite certification for their Longbeach farm in 2017.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

FARM FACTS Area: Longbeach Owners: Rick and Diana Bourke 50/50 sharemilkers: Stuart and Sara Russell Stuart Russell and his sister Marcia Watson in the dairy shed.

standards and expectations but Sara says none of them were too onerous or didn’t seem to have a good reason. Through the season they looked at what going the extra mile meant in terms of requirements to reach the next standard and decided it was worth the effort. “Again, it was very early on and we got a lot of support from the Synlait team so by the end of the next season we were certified Gold Elite,” she says. Rick says that while much of the paperwork has been done by Sara and Stuart, there has been a capital cost in improving infrastructure and technology. However, the investments have made sense financially in terms of the improvements in efficiency. Profit and efficiency are high on the priority list but it’s clear that so are animal health and welfare and environmental performance.

They’re currently only applying 70kg N/ ha across the whole farm, dissolving urea in solution and spraying it on when they need to boost growth and know they can get a high response rate. Their Overseer nitrogen loss number is 28kg N/ha/year. The farm has five pivot irrigators with three of them fitted with variable rate irrigation (VRI). The farm has been electromagnetically (EM) mapped to identify the different soil types within the farm and allow specific irrigation programmes to be set so that each area gets the right amount of water. It not only saves water it also means less likelihood of drainage down the soil profile minimising nutrient loss into aquifers and underground water supplies. Soil probes within the different zones measure soil moisture so it can be monitored closely every day.

ENVIRONMENTAL PILLAR When they made the move to Canterbury, Rick saw risks coming for those using high rates of nitrogen. He’d taken note of regulations that were being imposed in dairy farming regions around the world such as the Netherlands. “Sara and Stuart had worked in Ireland for a while too and they had seen what was happening there. “We probably missed out on some income along the way because it meant we didn’t maximise production but the system we run is more sustainable in the longer term,” he says.

GREENHOUSE GAS This year Synlait has further developed its greenhouse gas loss mitigation programme providing farmers with a framework and multiple actions they can take with each action allocated points. Under the proposed plan, once they tally the points for completed actions, they receive an incentive payment of up to 3c/kg MS depending on how many points they have. Sara says they are already doing some of the actions such as actively managing irrigation using soil moisture probes and VRI but they’re also

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Cows: 730 cows, Jerseys Cow liveweight: 412kg Total area: 280ha (youngstock reared onfarm) Milking platform: 205ha Production: 500kg MS/cow 412kg LW Jerseys Supplement: 700kg DM/cow grain, molasses, DDG, silage Nitrogen: 70kg N/ha

investigating other actions such as using solar energy to power pumps on irrigation wells. “Last season Synlait got us thinking about what we could do and we did a self-assessment. It was quite surprising just how many things you can do that have an effect – anything that cuts your nitrogen loss, or lowers your energy use – wrapping your silo, using heat recovery systems. “We’re already doing those things but it’s good to be aware of how they impact the GHG side of things,” Sara says.

ANIMAL HEALTH AND WELFARE The couple run a Jersey herd with a couple of Guernsey and Brown Swiss that have become a pet project for Sara. The whole family admits they’re besotted with their cows and it’s clear that the herd and animal health and welfare are a big focus. The Lead with Pride certification process is very much aligned to their 55

Left: Stuart and Sara Russell with some of the 730 Jersey cows they run. Above: Synlait milk supply area manager Jo Back with Sara, Stuart and Margaret Russell.

own values in that area but Sara says it’s helped them learn more. Measuring and monitoring has been a key factor. “We body condition score (BCS) four times a year so we can objectively make sure cows are at the target condition at key times. “We have blood tests from at least 12 calves each season to make sure their immunity levels are high enough and show they’re getting high-quality gold colostrum. “We record every animal that’s had any kind of lameness issue based on locomotion scoring and we’ve got a written plan to show how we’re trying to minimise bobbies,” Sara says. They’re currently trying to source sexed Jersey semen – not to produce heifers but to get more bulls. The majority of their Jersey bull calves are sold as Jersey sire bulls to follow up after artificial insemination (AI) and having Jersey male sexed semen to use in their all AI mating programme would go a long way to almost eliminating bobbies in their operation. To achieve Gold Elite status under the milk quality pillar one of several stipulations is cows must achieve a 10-day average bulk somatic cell count (SCC) of 150,000c/ml or less. The farm achieves that without any problem through attention to detail. They also have continuous vat and water monitoring through Levno and have installed security cameras to look at the vat and tanker pad as well as the yard and bridge onto the rotary milking platform. The social responsibility pillar has a major focus on staff and health and safety of people onfarm including contractors. 56

“It’s important and we do make sure we have systems in place but we only employ one relief milker – we do everything else ourselves,” Sara says. Rick is active onfarm and Stuart and Sara do most milkings as well as day-to-day herd and grass management. The 54-bail farm dairy is equipped with Protrack, automatic cup removers (ACR’s), and programmable feed heads on the grain feeding system so milking can be done by one person. It also has an LIC heat detection camera that’s made the all-AI mating manageable for the small farm team. Stuart AI’s the cows and this past mating they moved to twice-a-day mating for the first six weeks. Their six-week in-calf rate, based on the Fertility Focus Report was 81% and the empty rate after 9.5 weeks mating was 8.5%. Being accredited for Lead with Pride isn’t a one-off event and every year AsureQuality auditors visit the farm to check the standards are being adhered to. Preparing for audits used to be stressful but the development of FarmIQ’s dedicated Lead with Pride programme has helped immensely. “I used to keep all these bits of paper in a box because I was worried that at some time, I’d need them to prove we’d done something. “Now we can upload receipts and invoices, photos and screen shots or other documents as evidence and put them in the areas they relate to – it’s all there in one place. “We can also see what tasks are outstanding so there’s no forgetting something,” Sara says.

The system comes with an app and for bigger farm teams that means every team member can download the app and have tasks required for audit allocated to them. The app gives alerts and, much like the alert for notifications on any other app, clearly shows if a person has an outstanding task. Rick is happy to give Lead with Pride the thumbs up and says the incentive payments won’t necessarily be a straight addition to farm profit because there is a cost to meeting the requirements. “But it does do what it says – it leads you in the right direction and there are win:wins in most of what we do to achieve the standards,” he says. “And you can be proud of how you’re farming when you’re meeting the standards,” Sara says. The goal posts do move as expectations from markets, the public and regulators change and over recent weeks Synlait has been talking to its suppliers about new expectations for the coming season. Rick says there can be a bit of robust conversation during consultation about some changes and this year has been no different. “The good thing is you can have the discussions and the company listens – it’s a two-way street and you do get heard when we give them feedback on making something more realistic or practical. “We’re not right at the very front of the pack but we’re at the sharp end and that’s been in part due to the fact they’ve led us that way and I think that all helps when it comes to getting the best price for our milk,” he says.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

SPECIAL REPORT

GETTING FARMERS ON THE

PATHWAY TO PROSPERITY Synlait’s Lead with Pride programme offers its suppliers financial and personal incentives. Anne Lee spoke with national milk supply manager David Williams to find out more.

y the end of this year Synlait expects about 70% of its suppliers will be certified in its Lead with Pride programme which it launched eight years ago. The company has two tiers of the programme – Gold Plus and Gold Elite. Working towards attaining Gold Plus status within three years is now a requirement of any new suppliers. Each tier offers several incentive payments for specific actions or meeting specific criteria with up to 25c/kg milksolids (MS) available for Gold Elite and up to 20c/kg MS available for Gold Plus. To gain certification, farms must achieve more than 85 points in the certification process covering four pillars – environment, animal health and welfare, social responsibility and milk quality. Synlait national milk supply manager David Williams says the programme was developed as a way to show farmer suppliers the pathway to achieving best practice goals within its four pillars. “We (Synlait) had been a dairy farmer ourselves almost up until that time and we knew the efficiencies you could get out of doing things right in those four areas. “At the same time, there

The company is well connected to its suppliers. The Synlait Pokeno Milk Supply team includes area manager Olivia Smith, North Island milk supply manager Richard Managh, environmental advisor Lizzie Gurnel.

were people doing good things without getting recognition.” David says the company wanted people to stop being so focused on getting over the compliance line and start thinking about best practice. “Once you get into that mindset then compliance happens by default because you’ve lifted the bar enough and put resilience into your own system.”

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

David says that while a big part of Lead with Pride is about helping farmers be more efficient through best practice, there’s also an element of both “staying in the game” in terms of meeting increasing customer expectations and being able to return value. “It creates opportunities for us – there is a value there and our vision is to extract more of that value. 57

“There are some things customers expect and our focus is very much on giving the customers what they need so they will pay more for what we are making.” The company also offers special milk contracts. Synlait’s ability to isolate specific milk streams from the farm right through to a consumer product means it’s well set up to offer that to both customers and farmers. David says Lead with Pride has made the Synlait team very connected behind the farmgate with its farmers. There’s a lot of support such as one-onone advice on the programme as well as training and workshops. “The standard operating procedures (SOP’s) farmers develop really get them thinking about what the best possible way is for them to do a task and once it’s standardised, they’ll have people onfarm doing that task in a similar way so they’ll have consistency and that’s all going to bring good outcomes. “Once farmers are certified, they’re telling us the process has ‘helped me’ in my farm operation. “That’s why it’s been successful in getting uptake - sure there are incentives there but I think the ‘it helped me’ part - that’s important.” There’s a lot of work in becoming certified with a slew of actions and tasks required from weighing calves, blood testing sample groups to ensure highquality colostrum, having independent certification for effluent system warrant of fitness, having systems to prove staff stay above minimum wage, body condition scoring cows and having plans in place for minimising bobbies. Annual audits are carried out by AsureQuality. However, the company also has visibility into what’s going on behind the farm gate through its FarmIQ system. Synlait’s Farm IQ package has been developed specifically for it, providing farmers with a user-friendly system for recording information, plans, documents and evidence for audits. It can also stop the dreaded double up for farmers of collecting and sharing data. For instance, Lead with Pride doubles as 58

‘Once farmers are certified, they’re telling us the process has ‘helped me’ in my farm operation. That’s why it’s been successful in getting uptake. Sure, there are incentives there but I think the ‘it helped me’ part - that’s important.’

an accredited farm environment plan for Canterbury’s regional council. “We’re looking at what else we can do with the FarmIQ system now – how we can add even more value for farmers Synlait national milk supply manager David Williams. – things like benchmarking.” It’s also a great way to tell a very good story through to customers, he says. It’s unlikely consumers understand the details of what goes on behind the farm gate but be assured dairy company customers know – they make it their business to know to protect their brands and extract value too, he says. There have been changes to the standards required in Lead with Pride over time. David says the aim is to go through a consultation period and introduce changes early in the year so there’s time to discuss, finalise and give farmers a chance to start implementing them. For example, suggested changes this year have included minimum weights for calves sent off-farm and a more stringent requirement on irrigation system testing. Changes come about for a variety of reasons - some come from farmers themselves, some from regulation changes such as the 190kg nitrogen cap and if existing requirements aren’t achieving the outcomes the company wants. Synlait’s greenhouse gas tool and incentive payments have also been brought

in this year. Initially, farmers were given information on where GHG emissions could be mitigated and asked to come up with their own plan for reductions as a way to get them thinking. While the company has been giving suppliers their GHG emissions number since 2018, the new tool is about focusing on what they are doing and what they can be doing rather than just the number itself. Nothing is compulsory in the toolbox of mitigations and farmers may be doing many of them already but each one is allocated points. The incentive payment, up to 3c/ kg MS, is based on where they sit in terms of points. If the focus is solely on bringing down a number, people who are already efficient and made investments that mitigate GHG emissions can be penalised. While methane reduction can be difficult, there are plenty of actions farmers can take now to lower their GHG footprint for other gases so there’s no reason to not get on with it, he says. “There’s some robust discussions about some of it but that’s because some it (the actions) is a stretch.” Building understanding is key and farmers themselves can be the best ones to come up with innovations once they understand the problem, he says.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

SPECIAL REPORT

TATUA 360 SUPPORTS

CONTINUOUS IMPROVEMENT Words by: Elaine Fisher

espite disruptions caused by Covid-19, and a drier than normal summer, 2019/20 was a great season for Tatua dairy farmer shareholders, who produced more milk than the previous season, supplying 15.15 million kilograms of milksolids. The company achieved record revenue and earnings resulting in a cash payout to shareholders of $8.70/kgMS after an earnings retention for reinvestment of $1.26/kg MS. Brendhan Greaney, Tatua chief executive says that while the payouts from different dairy companies are compared each year; “the comparison is not apples-forBrendhan Greaney, apples” and can be Tatua chief executive. misleading. “Each of the processors have different ownership models. We are a co-operative, owned by our farmer suppliers and there is a cost of entry by way of shares and supply rights. Our payout to our shareholders is a distribution of total earnings less any earnings retained for reinvestment – simplistically, a return to our shareholders for their milk and investment in the company. “Other non-co-op processors may have a lower payout, but there is no cost of entry,

the farmers supply milk, but are not the owners.” Among the keys to success for the company, founded in 1914, is that it operates in highly specialised, higher-value segments of the market, in areas and at a scale potentially less attractive to larger companies. “Around half of our business is what we refer to as added-value. This includes a wide range of products, some very specialised, into a number of market segments. These are more complex to manufacture, but are also higher returning and tend to be more stable in pricing. Many of our value-add products have been in development for years and are typically customer specific.” That process needs patience, not just for the time and effort involved in development, but also from shareholders, who understand and support the company’s focus on diversifying away from reliance on bulk ingredient commoditytype products. However, Tatua’s bulk ingredient business of caseinate, whey protein concentrate (WPC) and anhydrous milk fat (AMF) remains a very important part of its business – albeit more exposed to fluctuations in global commodity pricing. Value-added products are produced on-site in high-tech FSSC 22000 Q certified facilities (FSSC is an international Food Safety Management Certification Scheme). These include dairy and nondairy protein ingredient powders for various nutritional applications, and even base ingredients used in the manufacture of biopharmaceutical and biopesticide products. Cream-based consumer and

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Tatua creme fraiche: many of Tatua’s products are more complex to manufacture, but are also higher returning and tend to be more stable in pricing.

foodservice products are also produced at the Tatuanui site. The company has a responsible farming programme called Tatua 360 which is made up of five core elements: environment, animals, food safety, people, and infrastructure performance. The programme provides a framework against which farmers can measure their performance, and assists in ensuring that they meet the expectations of Tatua customers, regulators, and the wider community. Farmers are audited annually against standards in each of the five Tatua 360 elements. If any actions are identified as a result of the audit, there is a process for these to be followed up and resolved. “We believe that all of our shareholders need to commit to meeting our standards, not just those who choose to, so we don’t offer premium payments for doing the right thing. Instead, shareholders are supported to achieve all of the Tatua 360 requirements,” says Brendhan. The only quality payment Tatua offers is linked to somatic cell counts. “Rather than having a tiered system that differentiates within our supply base, we have a strong focus on communicating why a change in practice is needed, and providing the tools to support the change. This allows all of our shareholders to support each other and move together with us,” he says. 59

SPECIAL REPORT

ADDING

VALUES TO EXPORTS

Words by: Prem Maan here’s no question in my mind that dairy that is produced to a traceable set of exacting standards can earn a premium for our country. Increasingly savvy, educated consumers want to align their own personal values and views with the food they eat. To do this they require transparency back to the source, an authentic story, and increasingly, that its production actually mitigates climate change. New Zealand dairy has a reputation for being grass-fed and is already comparatively the most carbon efficient. However, it’s not a straight line from our existing practices to being able to command a significant premium. Currently the butter under our Lewis Road Creamery brand graces the shelves in many discerning stores throughout the US and commands a premium due to its provenance story. It sells for NZ$10 for 227g. This has taken much more to achieve than simply changing a label or adding a QR code. While it helps having a great brand to take to market, we still had to make fundamental changes to our farms to create the premium butter. We’ve had to eliminate the cheap convenience of PKE, the way we manage our soils and, in some cases, we’ve had to accept a drop in production. Most 60

critically, we’ve had to create our own standard to authenticate the things our customers care about. Our 10 Star Certified Values Program is independently audited and covers strict grass-fed, environmental, climatic, animal, and human welfare requirements that go well beyond compliance. We refuse to use phosphate sourced from Western Sahara, for example, and our antibiotic use is below the EU requirements for organic farming. It took our Waikato farms an eightyear journey to meet our 10 Star Program standards – to bring the farm and infrastructure and feed procurement strategies up to meeting the requirements.

‘We do all of this firstly because it’s the right thing to do. There is a clear need to make our farms more sustainable – environmentally, economically and socially.’

We had to reverse a heavy reliance on PKE, to grow, source and store forage for winter and increasing weather volatility, and restore and replenish soils depleted

by forestry. We have either planted or retired 10% of our land to QEII reserve and committed to native plantings to encourage Prem Maan. biodiversity. We do all of this firstly because it’s the right thing to do. There is a clear need to make our farms more sustainable – environmentally, economically and socially. Farming that produces quality milk each year with fewer inputs and is resilient to climate volatility is in our common interest. Secondly, we do this because we know the costs of achieving the 10 Star standard are rewarded by a premium from consumers who want values, not just value, for their money. A good approach in general for NZ would be to educate farmers and reward them for improving soil carbon sequestration, preserving valuable nutrients and water onfarm, and reducing methane emissions to make animals more productive, all with the ultimate payoff that premium markets will pay more for products that have this kind of story standing behind them and are traceable. We have found that our sustainability and climate change mitigation ambitions do not jeopardise our investment. Quite the opposite. Our long-term view enables us to reimagine the industry both on and off farm. Our founding environmental, social, and governance (ESG) policies resonate

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

SPECIAL REPORT with our customers, as do our obligations to the United Nations as a signatory to its Principles for Responsible Investment. Interestingly, they are also starting to resonate with lenders. Our ambitious sustainability targets are now directly linked to lower loan costs from BNZ and its syndicate. This is NZ’s first farm sustainabilitylinked loan and both partners hope it paves the way for others. In my view, we should resist the view that future technology, and genetic modification, in particular, is the only path to production and profit. To let the genie out of the bottle would be very foolish. From a marketing perspective, it would hand all the advantage to the Irish, who have already committed to never permitting GMO. From a farmer’s point of view, the techniques of sustainable farming for a consumer premium must be practicable and immediately available; things like rotational grazing, riparian and other onfarm and retired land plantings, the use of earthworms and dung beetles, biochar, low tillage, and rotational, deep-rooted, increasing and diversifying pasture species, cover and catch crops. At Southern Pastures, we call this Inter-Generative Farming – farming to leave the whenua in a better condition for future generations. In my view, this will be how we enrich ourselves, not just as farmers, but as the inhabitants of a rare and lovely planet. • Prem Maan is the executive chairman of Southern Pastures and Lewis Road Creamery. Southern Pastures owns nine dairy farms in Canterbury and 10 in Waikato, plus a support farm. It is also the parent of Lewis Road Creamery.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

APP GIVES REAL-TIME

MILK DATA

The Nutricia spray drying plant, owned by Paris-based food and drink giant Danone, at Clydevale.

Words and photos by: Karen Trebilcock

anone’s farmer suppliers use an app to give them instant access to data on their milk quality. Launched by the Paris-based food and drink giant a year ago, it is specifically for the suppliers to its spraydrying plant near Balclutha in Otago. The data available includes total volume of each pickup, temperature on arrival, and the somatic cell count, as well as fat and protein. “The app gives farmers visibility of their milk quality and allows them to make changes based on real-time results to ensure they are providing the highest quality milk,” a spokesperson said. “For example, if a particular batch of milk had lower than usual fat or protein, the farmer would be able to

see this immediately after our testing is complete, and as a result alter their practices to improve their next batch.” The app also includes a chat tool that connects the plant’s milk manager with farmers. Danone’s focus is on milk quality and it is constantly working with its farmers for improvement. The Balclutha plant, at Clydevale, produces powder for the base of Danone’s infant milk formula brands Aptamil and Karicare, which are supplied to the New Zealand, Australia, Malaysia, Thailand, Hong Kong and Chinese markets. The 20 farms that supply it are mostly in the Clydevale area but are also as far away as Gore. They include 14 farms, mostly run by 50:50 sharemilkers, owned by Grant Paterson of Dunedin. Danone bought the Balclutha spray drying plant, built in 2012, and its Auckland Airport Oaks blending, packing and canning facilities in 2014 from Gardians – a partnership between Paterson and the Sutton Group. 61

SPECIAL REPORT

CULTURE TO THE CORE Words by: Elaine Fisher

here’s a kind of ‘halo’ around New Zealand, thanks largely to the way the country has managed Covid-19 and at the same time continued to deliver quality food to the world – making the NZ primary sector a great place to be. That’s the view of newly appointed Miraka chief executive Grant Watson who has a career-long passion for NZ primary produce, in particular dairy. “I am extremely passionate about the goodness New Zealand takes to the world through the wonderful food we produce and in terms of dairy, we are leading the way worldwide. I also feel honoured to be part of Miraka which is a unique and amazing dairy business.” Appointed in early February, Grant is the company’s second CE, replacing Richard Wyeth who signalled his intention to step down late last year. Owned by a group of Māori trusts and incorporations, Miraka is in Mokai, 30km northwest of Taupō. Unique within the dairy industry, it uses sustainable and renewable geothermal energy and state-ofthe-art manufacturing to process milk from its 104 dairy

The Miraka factory opened in 2011. Miraka CEO Grant Watson was attracted to the role by the strong and dynamic business, the elements of sustainability and the intergenerational strategic horizon.

farm suppliers, located within an 85km radius of the factory. The factory has the power and capacity to process more than 300 million litres of milk into powders and UHT products every year. Grant was attracted to the top role at Miraka because of the positive things he had heard about the company. “Under Richard (Wyeth), the board and the leadership team, Miraka has developed a really strong and dynamic business, the elements of which are sustainability and a strategic horizon which is intergenerational. “There is something unique about the Māori culture and how it sits across this business, including the core Māori belief and value of kaitiakitanga which challenges us to make the right decisions today for the very long term.” A conventional management 62

style is often focused on the next three to five years, but Grant says it is both challenging and rewarding to think in terms of “massively long” strategic horizons. “For Miraka, it is about finding a balance between intergenerational thinking and the fact that we have shareholders who have expectations around returns and making the right decisions accordingly. “It feels right for us to think 100 plus years out and it is great to line up with other organisations which are also future focused. Lincoln University is one of those.” Late last year Miraka signed a 100-year memorandum of understanding with Lincoln University forming a partnership which is the first of its kind in the country. It will provide a real-world farming context to test innovative new farming practices. Research areas will include Aotearoa-specific regenerative agriculture approaches, emerging agroecosystem and livestock production science, new technologies, and mātauranga Māori (Māori world view) approaches to land management. The Miraka factory opened in 2011 and by July 2013, had expanded to commission

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its ultra heat treatment (UHT) milk production plant. It exports milk powder, ingredients powder and UHT products to a number of countries, with a focus on China, South East Asia, Central America and the Pacific Islands. There are no short-term plans to invest in new plant or product categories. “The focus is very much to work with our current asset base first and foremost and look at how to add further value to our milk powder and UHT products. That’s not to say we won’t look at other products over time but there are opportunities within the current categories. “We have a committed group of 104 suppliers who are hugely passionate about producing top-quality milk. Our focus is on working with our existing farmers on how to add more value to the milk they provide.” This will include implementing the findings of the Lincoln research, feedback from farmers themselves and continual improvement and development along Te Ara Miraka, the company’s farm excellence programme. Te Ara Miraka is described as; “setting the benchmark and being the best in class in our business”. It also supports and encourages a culture of excellence through the entire Miraka supply chain – from the farm to the consumer. Te Ara Miraka has 27 different aspects of farm management, under five category headings. They are: Nga Tangata/people; Te Taiao/ environment; Taurikura/prosperity; Nga

kau/cow, Miraka/milk. Suppliers are judged and points are awarded for performance in each category. Top performing producers earn a financial bonus in their milk pay cheque. The majority of Miraka’s factory staff are locals, and the company seeks to attract and retain people by helping them identify their particular talents and interests to progress through the industry. “We also have staff who have come into the country with expertise which is a little harder to find in New Zealand. They have been attracted by what Miraka stands for and the location of a place like Taupō to live and work.” Grant’s pathway into the food industry began when as a Mt Albert Grammar School student, Grant worked part-time at

a McDonald’s. By 2005, and with a masters degree in business administration, he was chief operating officer for McDonald’s New Zealand. He then joined Fonterra in 2010 in the NZ Anchor milk business along with running both its foodservice business and premium bakery company, The Pastry House. As managing director, he later ran the Tip Top ice cream business. For five years Grant led the value-add global foodservice business, launching the premium brand of Anchor Food Professionals. His goal at Miraka is to; “make a profound contribution to Miraka, with the help of the board and the leadership team, so that when we look back, we will see that positive and enduring contributions have been made”.

Miraka milk powder, ingredients powder and UHT products are exported to a number of countries, with a focus on China, South East Asia, Central America and the Pacific Islands.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Stay on the farm, not in the books Our team knows what it’s like to own and run a farm and all the pressures associated with it. Cash flow pressures have kept us all awake at one point or another, so we’ve developed two finance options design specifically for you: • Go Subscription Model: full subscription available on all monitoring systems. • 24-month interest free payment terms on all monitoring systems. We’re not going to beat around the bush. You value quality and service above all else – after all this is your livelihood. You don’t cheap out on your wet weather gear so don’t on your monitoring.

Visit www.thegamechanger.farm to get in touch with your local Allflex Monitoring Specialist. 64

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

ENVIRONMENT BALLANCE FARM ENVIRONMENT AWARDS

L to R: Aidan Bichan, Vern Brasell and Neville Fisher; Kaiwaiwai shareholders involved in strategy, development and operations at the farm.

Planet, pride and profit The shareholders of a winning regional Wairarapa farm have taken up the environmental mantle. Jackie Harrigan paid them a visit.

inners of the Greater Wellington Regional Council BFEA Supreme Award for 2020, the shareholders of Kaiwaiwai Dairies completely know their ‘why’. Aidan Bichan, Vern Brasell, Neville Fisher and the other three original shareholders bought the dairy conversion in 2005 and have a clear vision - to leave the property in a better state than when they bought it, while being sustainable and profitable. “We want it to be an intergenerational asset for our families, and to be always improving in terms of sustainability, profitability and best practice,” explained Aidan Bichan. Of course there is always a tension between finding the capital to do farm development and paying out to shareholders, Aidan said, and with a diverse range of strengths and interests among board members, who all plead the

case for their development projects, there business along with Overseer and Farmax. is a robust discussion around the board The farm milks 900 cows, calving 320 in table. But they are very much led by their March/April and 600 in August/September, vision and their ability to analyse and supplying milk to Fonterra, with a winter number crunch every project and weigh up milk contract from mid-May to mid-July the pros and cons. for fresh milk. Ninety replacement heifers Shareholders are Aidan Bichan, a calves are reared in the autumn and 140 dairy farm consultant; in the spring, and the rest of Vern Brasell, a farmer and the 800 calves are sold for THE CULTURE: climate change enthusiast; rearing with no bobbies in PRIDE Neville Fisher, a civil the autumn and 140 calves P: People focused engineer and farmer; Peter bobbied in the spring. R: Results focused Warren, an earth-moving “We have worked at I: Innovative contractor; Robin Brasell, reducing the bobby calf D: Doing the right thing an atmospheric scientist numbers, and only the E: Enduring and climate change policy calves of heifers are now advisor (retired); and the bobbied,” Aidan explained. Estate of Neil Griener, a retired accountant The milking platform is 325ha and and foundation shareholder from 1992. 55ha leased and 22ha owned support land All are numbers and data-focused adjacent with a further 240ha leasehold in employing DairyBase, Cashmanager Focus South Wairarapa and Carterton for young for monthly monitoring and return on stock and providing winter grazing and investment to monitor and measure the supplements.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Right: Neville Fisher talks through the soils and fertiliser programme. Below: The trial retention bund on the farm is designed to hold water that runs off the paddocks and the road. Holding up water in the environment without laying on the pastures and allowing the water to seep slowly away avoids flooding damage.

The South Wairarapa area is summer dry with only 860mm annual rainfall average but with the exception of some palm kernel, the farming system is self-contained for feed. The support blocks grow 120t drymatter (DM) sugarbeet, 220t DM maize silage and 400t DM grass silage to feed the herd and produced 380,000kg MS in the last season. “We buy in a small amount of feed but prefer to alter the stocking rate to manage the pastures and feed supply,” Aidan says. In the 2017/18 season production suffered in the dry and landed at 318,000kg MS. Particular emphasis is put on managing the herd around body condition score (BCS), calving the cows at 5-5.2 BCS and the two-year-olds at 5.5 BCS. This emphasis is reflected in the reducing not-in-calf rates, after eight weeks of mating the NIC rate was down to 14% last season. Cows are calved onto oats to get bulk feed and to reduce metabolic problems on the low calcium crop. 66

“The cows start to mobilise calcium and less are affected with milk fever,” Neville explained.

flow. The design comprises water coming in from an adjacent drain (which drains 35ha of Kaiwaiwai and 200ha of adjacent catchment) into three separate wetlands with a serpentine flowpath of water down 6m wide bays to slow water flow and maximise residence and water treatment time. The area is well vegetated and study on ideal aquatic plants is ongoing. After treatment, the water is redirected back into the drain. Denitrification in the wetland is measured by monthly sampling of the water at the inlet and outlet and the flow is maintained at 14l/second (increased from initial rate of 10l/second). Results are encouraging with more than 10% removal of N from the farm (66kgN/ year) - and up to 100% removal from the water through the wetland in the warmer summer months (as inflow rates are lower then). Nitrogen removal fluctuates with the time of the year in relation to aquatic plant growth and water temperature. Results for the total phosphorus removed were 14.3%, above the 10% normally expected. Fish are present in the drain at the exit and frog and bird life is abundant - and the regeneration of the forest remnant is ongoing. At an installation cost of $55,000 the cost of removal of nitrogen is less than $90/kg N, which is comparable with other methods of reducing farm nutrient losses, Aidan said.

GREEN HOUSE GASES SOILS AND DRAINAGE The farm is a mixture of clay, silt and shallow peat soils and is typically summer dry and winter wet. A thick and impermeable rock pan under the soils means low leaching of nitrogen into soils and an Overseer N loss number of only 13-16kg/ha, but the pan makes drainage difficult with a trencher just not capable of pulling through the pan - so a large digger is needed. Despite the low Overseer N loss rate, the shareholders were concerned about N losses through drainage water and were interested in monitoring a wetland to see how much N it was possible to remove, so they embarked on a constructed wetland project in 2014. A digger transformed a 0.75ha area of rushes and pasture, next to a regenerating bush remnant block into a wetland with permanent and controlled

Vern and Aidan are both DairyNZ climate change ambassadors and have been carefully tracking their numbers and coming up with strategies to mitigate GHG emissions. The numbers sit at GHG CO2e of 9.7t/ha with 7.9t/ha of biogenic CH4. Strategies for reducing emissions include: direct drilling pastures, different pasture species, minimising pugging, use of the feedpad, use of more irrigation to increase grass growth and reduce supplement (new grass and irrigation can lift DM production to 20t DM/ha/year), improving reproductive performance and increasing production/cow through better longevity and better animal health outcomes, building dung beetle populations and increasing the soil H20 holding capacity and soil carbon sequestration. Vern said they are confident about reaching the 2030 target with the low-

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hanging fruit, but are nervous about grandparenting rules since they have been early adopters of many technologies.

GOING SOLAR Spending $110,000 in November 2020 on two banks of 54 photovoltaic solar cells is not for the faint-hearted, but works for the Kaiwaiwai Dairies shareholders. They calculated, and then demonstrated that they can capture enough solar to cover the 50kW base load of the irrigators, water, greenwash and effluent pumps, milk chilling, water heating and dairy shed load on a daily basis. Opting not to install batteries, they planned to cover the peak daily load and sell nothing back to the grid, and have a payback period of five years with estimated savings of $17,000 per year and a life expectancy of 25 years with 80% output at the end of the period.

COMMUNITY INVOLVEMENT Kaiwaiwai is staffed by seven full time and numerous casual team members from the local community. The shareholders are proud of the long-serving record of the fulltime staff, many having been at the property for 11, 13 and up to 19 years. Community involvement and contributions of shareholders and team members are very numerous to list, and the farm hosts up to 40 groups each year, including school and local community groups, farmers and politicians, policy makers and industry-good groups. The shareholders are always looking forward, planning, strategising and crunching numbers and are happy to be early adopters and role models from who the rest of the industry can learn. They are proud to be food producers delivering high-quality products while exceeding animal welfare standards, helping the environment and helping to save the world from climate change, while contributing to their local community and their Fonterra co-operative.

WATER EFFICIENCY Six years ago the KD shareholders decided they wanted to halve their water use in the dairy shed. They have now managed to reduce dairy usage to 36l/cow, which is around half the national water use level. Other initiatives to reduce water usage on the wider farm include: • Monitoring water in and out of the shed

Top: The solar array was installed in November 2020 and at 50 kW is designed to cover the base load when the shed and irrigation are running, with all the power used on the farm. Above left and right: Wetland area in 2014 and in 2021, performing at 100% N removal over the summer.

• Monitoring stock water • Monitoring water use online with Harvest Electronics • Treating effluent as a valuable resource • Using greenwash for washing the yard and part of the feedpad • Installing 120 days of effluent storage for winter milking • Monitoring water on the pivot irrigation - set up for variable rate irrigation (VIR) so no irrigation water is spread on races, fences or troughs, and differential irrigation is possible across each paddock. • Solids separation, using the liquid for the greenwash, applying solids to cropping area • Using chilled water for milk cooling

ENVIRONMENTAL PROJECTS AND TRIALS • Establishment of a wetland to filter drainage water from 200ha, removes 660kgN/year

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

• Potassium stripping from effluent irrigation paddocks by use of crops • Reshaping stock tracks to prevent runoff entering the waterways (the tracks have been recontoured to drain into the pasture and the high side of the laneways planted to slow down nutrient runoff • Planning to install a denitrifying bioreactor to remove nitrogen from the water • Solar voltaic power installation • Constructed a retention bund to trap sediment and reduce from waterways • Featured in a Ministry for the Environment video on Climate Change Mitigation on farm • Presented a workshop on Climate Change options • Installing and experimenting with fish passages for culverts and fish bays for drain cleaning • Riparian planting to shade drains, lower water temperature enhances fish life. 67

ENVIRONMENT FARM FOOTPRINT

Solutions to reduce farm footprint

ew DairyNZ research shows farmers can identify ways to increase efficiency and reduce environmental footprint – but there will be challenges for some. The Greenhouse Gas Partnership Farms research project worked with farmers to identify and model how their farms might reduce both nitrogen loss and greenhouse gas emissions. “Making these gains will be the first steps as farmers work towards the Government’s 2030 climate change targets,” said DairyNZ strategy and investment leader Dr Bruce Thorrold. For some farms, the research identified options that offered lower footprint and higher profit. For already highly efficient farms, footprint gains tended to come at a cost to profitability. “It is more challenging for farms that are already efficient. For them, it’s about where even the smallest gains can be made. Small improvements on individual farms add up at national level.” The dairy sector is working through a process of helping farmers know their emissions profile numbers, identify options and implement solutions. “The Partnership Farms research highlights that to reduce footprint, all farms had to reduce total feed eaten and nitrogen surplus. The findings highlight the need for ongoing research into technology to reduce footprint without reducing feed,” said Dr Thorrold. “These technologies are required

A SNAPSHOT OF ONE PARTNERSHIP FARM CASE STUDY – TOKOROA PASTORAL

Five options were modelled for the Moss family farm, Tokoroa Pastoral, in Waikato, owned by climate change ambassador George Moss and his wife Sharon. The 70-hectare farm milks 175 cows. The research found farms such as Tokoroa Pastoral, which are highly efficient, generally can only slightly reduce environmental losses without affecting profitability. 68

Step Change: Farms such as Tokoroa Pastoral, which are highly efficient, generally can only slightly reduce environmental losses without affecting profitability.

for dairy farmers to achieve the challenging Climate Change Commission recommendations. Investment in R&D and support from the government will be crucial.” The Partnership Farms research is part of DairyNZ’s Dairy Action for Climate Change commitment to support dairy farmers and the wider sector to address on-farm methane and nitrogen emissions longterm. The Partnership Farms modelling was carried out for six farms in Waikato, Southland and Canterbury. The work found a strong understanding of the farm, the people and the farm system was important at the beginning. The process involved a Whole Farm Assessment and modelling in Overseer and Farmax.

The modelling showed reducing replacement rate achieved a small reduction in greenhouse gases and a small gain in profit, and looked to be the best opportunity. This option relies heavily on reducing the not-in-calf rate and finding an alternative use for additional grass grown on the support block. The modelling on Tokoroa Pastoral also showed reducing imported supplement is the option most likely to reduce GHG, but this tended to reduce profitability. When combined with a reduction in nitrogen fertiliser

Dr Thorrold said dairy farmers are committed to playing their part in addressing climate change, alongside the rest of New Zealand, and there is a wide range of work underway on farms throughout the country to achieve this. “It’s about doing the right thing as a sector and consumers are also increasingly demanding sustainable products.” The next step is for DairyNZ to work more widely with farmers to start exploring their own system adaptations through its Step Change project. Step Change is helping farmers understand the options best suited to their farm and how to improve profitability and water quality and reduce greenhouse gas emissions. A series of Step Change events will start on March 10 to help farmers explore their options. “Our regional teams are working with farmers to help them understand their starting position and then uncover the opportunities available – some of which are demonstrated through this research,” said Dr Thorrold. Farmers interested in learning more about improving their environmental performance and profitability can find out more at dairynz.co.nz/stepchange Case studies: See the Greenhouse Gas Partnership Farms’ case studies on the DairyNZ website at dairynz. co.nz/GHGfarms. These detail options for farms to reduce both nitrogen loss and greenhouse gas emissions, while maintaining or increasing profitability in some cases.

use, it made the largest reductions in GHG emissions, with a small drop in profitability. George said he had taken steps to reduce emissions, including fastforwarding his genetics with sexed semen, using urease inhibitors and reducing his nitrogen surplus. “After farming in Tokoroa for around 30 years, I am now planning ahead for changes expected in the next 30 years,” he said. “As a society, we know greenhouse gases need to reduce from basically all sources – and it will take each and every one of us.”

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

YOU’LL RATE IT TOO

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GROW SOME TALK TO YOUR SEED SPECIALIST TODAY.

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STOCK CALVES SLIPPING

Early scans picking up pregnancy losses Farmers who scan their cows early to see if they are pregnant have the advantage of being able to get a cow that has slipped back in calf. Karen Trebilcock reports.

uring early pregnancy scans, farmers will often hear the word ‘slipping’ from the vets. It’s describing a pregnancy that has ended, for whatever reason, and the foetus is no longer alive. “Actual conception rates, sperm fertilising egg, can be as high as 90% in cows but losses can occur at any stage, particularly early on, so that we end up with our 60% target,” said vet Jason Darwen of Clutha Vets. A pregnancy could be detected from about 28 days by manual palpation or ultrasound scanning. “At 35 days we’re looking for something that is about a centimetre long from crown to rump if it was stretched out and we’re looking for a heartbeat to confirm it’s alive. “At that stage it is just a very quick flutter,” he said. “Unfortunately, some of these early detected pregnancies will not survive, and we consider it normal to lose up to 5% of pregnancies diagnosed between 28 and 42 days (four to six weeks), so we always recommend rechecking these cows at a later stage.” He said if a herd was not scanned early, the cows would eventually show up as late or empty, and the farmer would never know that the cow had been in calf and slipped. “Some of these cows may show up with long return intervals between services with no explanation.” Farmers started doing early pregnancy scans at least 15 years ago and for about 5% of Clutha Vets’ dairy farmers it was now routine. “The original reason was to pick up phantom pregnancies – cows that had been 70

Braeburn Farms manager Allan Bote talks to vet Jason Darwen about early pregnancy scanning of the herd.

mated and had not come back on heat but were not pregnant. We have the option of treating these cows with appropriate hormonal interventions at this stage.” Cows that were recorded as having been mated but did not have a viable pregnancy at scanning could be given a PG (prostaglandin) injection if they have a corpus luteum (CL) on the ovary. This may bring them back on heat in a few days. “It means the farmer can do something quickly and hopefully get the cow back in calf,” Jason said. “For farmers who only scan after mating is finished it’s too late for them to do anything if there is a high empty rate.

“If they scan early they can leave the bull in or keep going with AB. For some clients it can be better to have late calving cows than empty ones.” Allan Bote, farm manager at Braeburn Dairies at Clydevale in Otago for the past six years, has done early pregnancy scanning since the farm owner, Mark Shore, decided to go no-bull five years ago. They used to mate for 15 to 16 weeks using a combination of AB and natural mating but now use AB for 11 weeks only. “We had to adapt when they phased out inductions,” Allan said. Planned start of calving is August 3 with all of the 800 to 850 cows milking by the

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Right: A scan of a pregnant dairy cow 40 days following conception.

end of October. They do an early scan eight weeks after the start of mating and this year decided to use AB for another week, until January 17, after the early scan showed not enough cows were in calf. A final scan to find empties for culling is done six weeks after the end of mating and, if Allan has seen cows riding that scanned as pregnant at the end of the season, he will do a final one in May. The farm uses Friesian straws for its replacements and finishes with beef breeds Speckle Park and Stabilizer instead of short gestation dairy because it wants to avoid putting calves on the bobby truck. Jason said the number of slipping pregnancies (dead foetuses) at Braeburn was not unusual, and no particular reason has been found there for calves slipping. With few farms doing early pregnancy scans, and with farms doing them at different stages of pregnancy, it was difficult to benchmark calves slipping between farms and from one season to the next. “Certainly if there are an unusual number on a farm we’d go looking for causes,” he said. “BVD can cause early embryonic loss, but the vast majority of our herds, including Braeburn, are regularly monitored for BVD using bulk milk testing. “We do get the odd hiccup with BVD in the district. A lot of the herds haven’t had any exposure for years so any introduction has a significant effect.” Salmonella, M. bovis, and other pathogens could also cause cows to lose a pregnancy, he said. “Macrocarpa and mouldy balage will do it as well, but that usually happens in late pregnancy. “If cows are not stressed, if they are healthy and happy and well fed, then you are doing everything right. A few early pregnancies slipping is just part of mating.” Allan said the herd was fed grain daily throughout the season on the rotary platform while milking to smooth out grass quality and quantity issues

“If cows are not stressed, if they are healthy and happy and well fed, then you are doing everything right. A few early pregnancies slipping is just part of mating.” during mating and early pregnancy. “One of the hardest things is you’re mating at the time of the year when the weather here can be very changeable,” Allan said. “It means grass quality is very changeable too.” Jason said it was unlikely that a farmer would notice an early foetus slipping. “In those early stages it’s smaller than a grape, so the only way to detect it is by doing early scans.” As a PG shot would abort a foetus, care was always taken to make sure the cow was not pregnant before it was used. “It’s a very thorough process. If we scan a cow empty we always do a manual check as well before using PG. “When you are scanning you’re never 100% sure you are seeing all of the uterus.” He said sometimes they would find a dead foetus in one horn of the uterus, but a viable one in the other. He said scanning did not cause pregnancy losses. Ultrasound was widely

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

used across a wide range of species, including humans. However, inseminating a pregnant cow could cause an abortion so farmers picking cows for AI later in the mating season needed to make sure they were genuinely on heat. “We don’t just look at the tail paint,” Allan said. “We look at all of the data we have on the cow, such as when she was last inseminated, and we look for other signs of riding such as rub marks. “If it’s been wet or there are trees in the paddock the cows could have rubbed against we are very careful, and we redo the tail paint every week so it is always fresh.” Early pregnancy scanning also improves detection of twins and occasionally triplets. Of the 400 cows scanned eight weeks after mating started at Braeburn this season, there were 16 sets of twins. “We can’t sex a foetus until it is 60 days old so we have no idea if they will be freemartins,” Jason said. 71

VETS VOICE ULTRASOUND

Left: Ultrasound shows fluid in the chest of a heifer with severe pneumonia. Fluid is black, and the diaphragm is seen as a grey band. dollars. Middle: Modern cattle ultrasound units are lightweight and portable, meaning they can be used more readily onfarm. Below: A section of small intestine in a cow, which is blocked with gravel.

Modern ultrasound Words by: Lisa Whitfield

to make a definitive diagnosis, deciding whether surgery is warranted, and assisting ost farmers are accustomed with giving a prognosis. to the sight of the vet For cattle with internal problems, putting on their ultrasound ultrasound gives us a window into gear to do pregnancy the cow to provide more information, diagnosis at this time of the year. without having to make an incision. A Modern ultrasound units are lightweight, few years ago, I was asked to examine a ergonomically designed machines cow that was off her feed and off milk that allow the user to move about during spring. After the clinical freely and work quickly and examination, everything pointed comfortably for a few hours at clearly towards a problem in her a time. abdomen, but it was unclear Did you know that whether she needed surgery ultrasound can be used for or not. Ultrasound was used to more than just pregnancy examine her abdomen, which diagnosis in cattle? showed that there was a blockage Lisa Whitfield or a twist, and it allowed us to see With the ability to see more than 20cm deep through the skin that surgery was necessary to save and into the cow, the latest ultrasound the cow. We went ahead with surgery and units can be used to examine the internal when we opened her up, we found a 20cm organs quite readily. From viewing the long piece of intestine that was completely heart and lungs in the chest, to the liver, blocked with gravel. The blockage was able stomachs and intestines in the abdomen, to be cleared, and the cow recovered, got there are many organs that can be assessed in-calf, and went on to have a productive for problems. season. In a sick cow, a thorough clinical exam is In another case, a dairy heifer presented the fundamental process that vets perform to me with signs of pneumonia. The signs to identify abnormalities. Once all of her were bad, but not enough to say she was problems have been identified, a diagnosis not saveable. We performed ultrasound can be made, or often, a list of potential on her chest to help decide whether to diagnoses is made. Ultrasound can provide go ahead with treatment. The ultrasound additional information by giving the vet showed she had a huge build-up of fluid an extra visual assessment of internal around her lungs, and the prognosis was structures, which can be useful in decision unfortunately grim. In this case euthanasia making around the case, including helping was best choice for her. The use of

ultrasound saved the farm a lot of money on treatments that would not have saved the heifer and it allowed us to end her suffering much sooner. So how does ultrasound work? The transducer contains crystals that emit ultrasound waves into the body. The waves are bounced back by whatever they hit, and depending on how solid the object is, either more or fewer waves are bounced back to the transducer. A computer organises the signal to create an image, with more dense objects appearing whiter, and less dense objects appearing blacker. For example, bones are very solid and reflect almost all of the ultrasound waves, while soft tissues such as muscle appear as a variety of greys, and fluids such as urine are black. Ultrasound can provide useful information to assist a vet in making clinical decisions for cases. Performing an ultrasound exam can improve the outcome for a sick cow significantly, whether through improved treatment plans, or allowing the decision to be made to euthanise. Talk to your vet about what they can offer in this area – not everyone will carry an ultrasound unit around in the truck with them, but most will have a portable unit available that can do the job. • Lisa Whitfield is a Manawatu-based production animal veterinarian.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

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STOCK BIOSECURITY

New chief biosecurity officer for MPI Stu Hutchings, newly appointed chief biosecurity officer for the Ministry for Primary Industries, has an extensive background in biosecurity risks in both animals and plants. Elaine Fisher reports.

ew Zealand is close to eliminating the disease Mycoplasma bovis from its dairy and drystock herds and if it can, will be the first country in the world to do so. Among those confident of that success is Stu Hutchings, the new chief biosecurity officer for the Ministry for Primary Industries (MPI). “We are towards the end phase limit of the disease and can now start the phase to prove freedom from it. Recently there has been a small increase in detection but that was not unexpected given the seasonal surveillance through bulk milk testing. Each season we expect more testing to find traces of M. bovis but the traces are getting less and less over time. “This has been a great collaborative effort between the farming industry and government with the farming community shouldering a lot of the burden both emotionally and financially.” Currently chief executive for Kiwifruit Vine Health (KVH), Stu is well qualified for his new role, given his wealth of experience and knowledge in management of biosecurity risks in both animals and plants, in research and innovation, and through his wide network of contacts formed from working with farmers and growers, industry and central and local government partners. Alongside his role with KVH, Stu has been an independent director on the Mycoplasma bovis board. As chief biosecurity officer, Stu’s tasks will include taking an overview of the work of the Biosecurity New Zealand directorates, which focus on import health standards pre-border, at the border at ports and airports, and post-border. 74

Stu Hutchings, the newly appointed chief biosecurity officer for the Ministry for Primary Industries.

“One of the mandates for the new role is to look across the whole system to provide assurance that it is working well.” “We’re excited to have Stu join us as our first chief biosecurity officer. He has proven leadership in biosecurity and in his previous roles he has always had a genuine focus on putting growers and farmers at the centre of everything he and his team do – something incredibly important to us at MPI and integral to successfully all working together to keep unwanted pests and diseases from making their ways onto our farms and orchards, and into our communities,” says Penny Nelson, deputy director-general Biosecurity New Zealand. Biosecurity New Zealand systems protect New Zealand from imported pests and diseases that could harm the

food and primary sector, New Zealand’s environment and biodiversity, and the health of New Zealanders, and the threats are ever-present. Stu joined KVH three years ago from the role of group manager for OSPRI and has had previous roles as acting chief executive there as well as at the Animal Health Board. A veterinarian by profession, he has also held roles within private vet practice and risk management product development for the New Zealand Veterinary Association. “Kiwifruit is an amazing industry to work in because of the proactive nature of the industry and I have especially enjoyed working in KVH. It has a passionate team of people and is an organisation in which you can come up with an issue or problem, talk it through, do background research and implement solutions relatively quickly. I have also enjoyed the collaboration between KVH, Zespri, New Zealand Kiwifruit Growers Inc and the wider industry.” Formed to take over the industry’s response to Psa-V in 2010, KVH has been at the forefront of government industry biosecurity collaboration, becoming the first to sign the Government Industry Agreement in May 2014. Stu grew up in Palmerston North and Wellington, returning to Palmerston North to study veterinary medicine at Massey University before working as a partner in a veterinary practice in Taupo. “It was while I was there that I became interested in population-based disease control. Rather than focusing on individual animals it is thinking about the epidemiology of how a disease works and

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spreads across a population, understanding the risks to a whole group and working out how to address them.” At the time bovine tuberculous was a major issue among deer herds in the Taupo region, which helped spark Stu’s interest in the bigger picture and led to his role with OSPRI. The organisation is a partnership between primary industries and the government and manages two national programmes – NAIT and TBfree. NAIT provides the national animal identification and traceability system and TBfree aims to eradicate bovine TB from New Zealand.

‘When it comes to biosecurity there is no such thing as zero risk and there will be incursions in future.’

That aim is drawing closer to reality but it’s been a hard-fought battle hampered by the fact that wildlife such as possums can transmit the disease. “In the early days of the TB response whole herds were killed and we were constantly finding the disease. The emotional and financial strain

Brown marmorated stock bug: interceptions of BMSB trying to make it into New Zealand dropped by 50% this year over last because of the controls introduced in 30-plus overseas countries sending goods to NZ.

on farmers was huge. Now numbers are so low, finding it in herds is rare.” Biosecurity incursions carry a significant personal and financial cost for all those affected. “Pastoral care, making sure there is support for those directly affected is a crucial part of the whole process.” Biosecurity New Zealand has turned some of its attention offshore to reduce the risk of incursions and its work to keep out the brown marmorated stink bug (BMSB) has to date proved successful. “Last year interceptions of the BMSB on shore were 50% down on the previous year because of the controls introduced in 30-plus overseas

countries sending goods to New Zealand.” With the borders closed because of Covid-19 and fewer people entering New Zealand, some of the risks from unwanted pests and diseases have reduced, but goods and products are still arriving through mail, shipping and airfreight so Biosecurity New Zealand staff cannot relax their vigilance. For Stu, the absence of the need for a response to an outbreak, or successful detection and elimination onshore will be the biggest reward in his new role. “But when it comes to biosecurity there is no such thing as zero risk and there will be incursions in future.”

0800 220 232 | Building Better Herds | www.samen.co.nz

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75 Scan For More Information

N A M N O I T C A

N O I T A OF IRRIG By: Karen Trebilcock

fter a summer internship with Lindsay Corporation, fourth-year Lincoln University student Jack Taggart knows quite a bit about irrigation. Through friends he heard about the position, had the interview a week after exams ended and got the job. It finished the week before uni started again mid-February although at the beginning of March he was still in the midst of writing up the final reports. Multi-national company Lindsay is introducing FieldNET Advisor, remote irrigation scheduling technology to New Zealand, and it was Jack’s job to make sure it was doing what it was supposed to. FieldNET Advisor automatically combines crop type, hybrid and planting dates with soil maps, hyper-local weather information and historical paddock data. Through crop growth and water usage modelling, the algorithms set a new plan every day for the irrigator so the farmer doesn’t have to do anything. The irrigation recommendations help improve crop performance by reducing water stress and nutrient leaching, without the cost of installing additional sensors or probes in the field or the need to visually inspect every crop. Water is conserved by reducing the likelihood of overwatering and loss of key nutrients.

The system can optimise irrigation at the scale each farm requires, however unique it is, based on operational objectives such as priorities of conserving water and energy and at the same time boosting yield production. “It’s really an impressive setup. It’s already being used successfully in Australia and the United States but with our different pastoral systems and climate it still needed to be validated here,” Jack said. On cereals, potatoes, onions, potatoes as well as grass and winter crops on dairy country, the farms Jack was involved with were dotted from the coast to the mountains in Canterbury. “My boss was in Australia so we would video call once or twice a week but otherwise I was on my own. I had to do my own selfmotivating which was new to me.” He stayed the summer in his Lincoln flat and a desk at the campus library became an extension of Lindsay Corporation’s vast global spread. And of course, on the way to visit the irrigators, Jack could stop by at the family farm between Ashburton and Methven. “I’d stop in for lunch or tea. Say gidday to my dog.” His family milk 1200 crossbred cows on two properties next to each other with 36-aside herringbone dairies. There’s also a runoff close by the farms so the operation is fully self-contained except for inputs of barley straw and palm kernel. Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Jack started at Lincoln University in 2018 completing a oneyear Diploma of Agriculture and decided to stay another year for the Diploma of Farm Management. “By then I was starting to get really interested in the financial and management side of farming so I decided to do the BComAg degree,” he said. “It’s a three-year degree but the university allowed me to cross credit from the two diplomas I had already done so I can do it in two so I’ll be finished at the end of this year. “In four years I will have attained three qualifications, the same time it takes to get a Bachelor of Agricultural Science degree at Lincoln. It’s a bit unusual, but for me it was a nobrainer really.” Although the goal is farm ownership in 10 or 15 years’ time, for the moment he is happy to sit on the sidelines for the next few years and will be looking for a position as a rural professional after graduation. “I think with the uncertainty of farming at the moment, I’d rather be helping to deal with the situation than be on the farmer’s end,” Jack said. “With the changes in regulations and the reforms that are happening no one really knows what farming is going to be like when it settles down.” Not that he’s not at the farmer’s end of it now. Although managers run the family farm, and Jack is no longer living at home, he is still very much part of farming management discussions and working through family business strategies. He also knows the operation from the bottom end. He and his younger sister, now also a Lincoln student, spent holiday periods and before and after school getting cows in and milking. And with a bit of irrigation knowledge behind him after his summer internship, he’s now also involved in upgrading the farm’s irrigation systems. “We’ve got one pivot which covers only about 90 hectares

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

and then two guns and an awful lot of k-lines and there is still some border dykes on the runoff with roto rainers as well,” Jack said. Along with dealing with the mix of different systems, they’ve also had to stop using their shallow wells through changing regional council and local water schemes regulations and the water bores now go down 120m. When he’s not at lectures or studying, Jack is playing squash as well as skiing in the winter. He also has a group of friends keen on mountain biking and they often take their bikes out in the hills around Christchurch. “We do a bit of hunting as well, although hunting and being a student don’t go so well together, pouring all of our money into 4-wheel drive utes.” They are looking for “any animal with four legs”. “We go out into the Canterbury foot hills after deer, tahr and chamois mostly. “Although we won’t say no if we spot a pig.”

Above: Fourth-year Lincoln University student Jack Taggart worked the summer testing the new FieldNET Advisor irrigation system.

RESEARCH WRAP METHANE INHIBITOR

Dosing barn-housed cows daily or at regular intervals with 3-NOP is much easier as their feed is controlled.

Diet additive promising for methane reduction Words by: Jackie Harrigan

utch company Royal DSM say they have found the answer to methane emissions from cattle with a feed additive that cuts the level by as much as 30%. While the product has been proven in housed and concentrate-fed dairy herds in the northern hemisphere, more research is being undertaken by New Zealand researchers in conjunction with Royal DSM to develop the product for use under NZ conditions. “AgResearch has been working with Royal DSM and Fonterra over the past three years looking into the 78

Jeremy Hill, Fonterra Chief Scientist.

development of a pasture-based model for Royal DSM’s additive Bovaer (tradename for 3-NOP), investigating a number of formulations and feeding models,” says

AgResearch principal research scientist Dr Peter Janssen. “Further trials are continuing looking at the additive’s development and efficacy in pasture-fed cows. “Trials already completed utilising Bovaer have demonstrated a reduction in methane of more than 30% for up to six hours after feeding the inhibitor. New trials continue to focus on product development and refining options for a commercial formulation in New Zealand farming systems.” While details are scant due to the commercial sensitivity of the results, Fonterra chief scientist Jeremy Hill says the science is very exciting and the research

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

will have worldwide applications for pasture-based agriculture. “We need to explore the full potential of the approaches for delivery of the inhibitor – because we need to try to come up with ways that are practical and cost-effective where cows are not eating a ration to carry the methane inhibitor. “And then we must create the right business incentives for farmers to use it in a pasture-based dairy operation.” The exciting thing for Hill was that once they had cracked the technology of the delivery, there were proprietary rights to the technology that can be sold around

the world to other potentially pasturebased farmers, and not just in the dairy space. “We are excited about the approach, but it’s early days – the research programme has been running since 2018, initially feeding in chambers and now in the field. “We are confident in the science, and now working on the mechanism.” Hill wouldn’t be drawn on whether the mechanism would involve a pellet, a slow-release bolus or drench, saying they are using rather novel approaches and researchers would have a good idea of how it is going in two to three months.

HOW DOES 3-NOP WORK?

3-NOP is the abbreviation for 3-Nitrooxypropanol, an organic compound with the formula HOCH₂CH₂CH₂ONO₂. It is the mononitrate ester of 1,3-propanediol. The compound is an inhibitor of the enzyme methyl coenzyme M reductase. MCR catalyses the final step in methanogenesis. (Wikipedia) Chemical formula: C3H7NO4 The product is composed of a nitrate and an alcohol and by binding to the enzyme MCR, 3-NOP slows down the last step of methane formation by methanogens in the rumen, thus reducing the amount of methane produced. The 3-NOP then breaks down into the natural fragments that it is made of and which are part of normal metabolism of the cow. Feed level: DSM claims that just a quarter of a teaspoon per day is enough to reduce methane by 30%, but that it needs to be fed every six hours.

Research results into a method of delivery of 3-NOP for pasture-fed free-range cows is getting closer, and are looking exciting, says Agresearch and Fonterra.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

CANADIAN TRIALS SUCCESSFUL The 3-NOP technology was demonstrated in a large-scale trial in Alberta, Canada, run over two years using 15,000 cattle and developing new technology to do the measurements on the live cattle. Rather than measure individual animals in gas chambers, Green Feed Systems technology was employed to use laser grid measurements in pens of 125 animals. As explained in the Canadian Farm Progress Journal, the air was measured as it entered upwind of the pen and then again downwind, detecting the amount of methane leaving the pen. Using several measurements of the groups, the total methane for the herd was extrapolated, along with the reduction. During the trial, measurements showed a 70% average reduction of enteric methane, when the 3-NOP was fed in steam flaked or dry-rolled barley in finishing diets at 125mg/kg of feed drymatter. In backgrounding (the step before finishing) diets increasing the dosage of the feed additive from 150 to 200mg/kg feed decreased methane yield by 17-25% compared with the control animals. The trial also showed a reduction in methane with no negative impact on animal health or performance. The value of the GHG reductions over the trial period was worth 1473 equivalent tonnes of CO₂, the same as taking 500 cars off the road for a year. According to Royal DSM VP Mark van Nieuwland, there is interest in Canadian cattle ranchers to become carbon neutral, and in the opportunity to sell the value of the methane reductions into the Canadian carbon market. “If you can, as a feedlot operator, demonstrate you produce less GHGs, you can actually get credits and those are traded on the carbon market.” DSM has also reported successful trials in the Netherlands, with 2740% reductions in methane in a dairy trial with Wageningen and FrieslandCampina, and a trial is ongoing with Finnish dairy company Valio. 79

RESEARCH WRAP GENE EDITING

Genetic engineering now editing Scientists who gathered recently to discuss gene editing shared their frustration at the slow development of the technology in New Zealand. Tom Ward reports.

ecently the NZ Institute of Agricultural and Horticultural Science (NZIAHS) held a one-day forum at Lincoln University on the subject of gene editing (GE). The 12 scientists who spoke were all in favour of the need to develop this science in NZ, and without exception showed their frustration at the difficulty and expense of advancing the technology in this country. NZIAHS, a group supporting primary industry science, organised the forum to assist the Royal Society (RS) in promoting a national, science-based, discussion about GE. The RS is a NZ body promoting knowledge of all sorts. The topic is vast and complicated, with the GE acronym itself being confusing – GE has in the past denoted the term genetic engineering, now we are using it to mean gene editing, and both terms are a part of the wider field of molecular biology. Since the Royal Commission’s report into genetic modification in 2000, there has been no informed public debate and the legislative and regulatory controls, at both local and national government levels, have become, if anything, stricter. However, there have been major developments in the science over the past 20 years. As far as I can deduce, gene editing has taken over the other genetic modification technologies. A panel, put together by the society, recently completed a three-year review of the science in NZ. The review found that after 20 years very strong views were still held, particularly on transgenesis (between-species gene transfer). It found that young people were more inclined to consider the intricacies of GE technology, and that politicians were aware of GE but uncertain how to respond. It found the legislation is not fit for purpose; for 80

Could gene editing control clover weevil?

example, some gene technologies are virtually undetectable, and there is no legislation to deal with the international trade in GE. Maori investment in primary production is growing and they do not have a coordinated view on GE. For example some will want GE out in the environment so they can accelerate manuka improvement for honey production. Others do not want that, but there is a high awareness among Maori of the potential for GE to deal to some of the congenital diseases Polynesian peoples are more susceptible to. Overall, the generally low level of knowledge about GE in the NZ population needed to be addressed. Plant biologist Dr Paula Jamieson built some perspective around GE by taking us through a history of plant breeding. Firstly, she defined GE as “taking a gene from one species, and putting it into another with

which it could never naturally breed”. Jamieson pointed to the numerous arguments against GE, i.e. tinkering with nature, Frankenfoods, escape into the wild, farmers cannot save seed, big companies control the food chain, unexpected consequences, and contaminating organic produce.

BREEDER TECHNIQUES In classical plant breeding, within the same species, male and female chromosomes match, and reproduction relies on successful pollination and fertilisation. With hybridisation the breeder either (1) crosses inbred lines or cultivars of the same species, or (2) does wide crosses between different species (or genera) and the offspring are usually infertile. With the former (1) you get hybrid maize, hybrid broccoli, hybrid pansies and while this generates hybrid vigour, seed cannot be

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

saved because the next generation will be too diverse. With the latter (2), you get for example, a mule as a result of putting a horse over a donkey and the mule will be infertile because the chromosomes cannot match. However, in plant breeding, since the 1930s a chemical called colchicine, which doubles the chromosomes, has been used and we now get a fertile plant. Embryo rescue is a technique where, in wide crossing, the endosperm which sustains and feeds the growing embryo is insufficient (unbalanced), and the embryo can be ‘rescued’ by culturing it in coconut milk or banana, or a synthetic endosperm. This has allowed plant breeders to do between-species crosses for decades, e.g. orchid breeders. Breeders have also done crop crosses, e.g. triticale, from wheat (a tetraploid) and rye (a diploid) with colchicine and embryo rescue. Triticale, which is fertile, is a new artificial genera grown all around the world. There is no legislation covering this technology.

TRANS-GENETICS IN NZ Mutation breeding, either chemical or radiation, is another technique used by breeders. There are thousands of mutant varieties registered in 170 plant species, 25% of which are ornamental. Of the crops (75%), rice, wheat, barley, peas, and grapefruit are examples where mutation breeding has brought increased yield, quality, disease resistance, herbicide resistance, and alkaline and acid tolerance. The technique has been used for 80 years and there is little regulatory control over the magnitude or type of genetic change; it is random, multiple and unspecific. Another example is the organic beer brewing industry, which used Golden Promise barley, a gamma ray mutation, for 20 years. Genetic engineering is inter-kingdom transfer (i.e. animal to plant, and vice versa) which cannot be done with any other plant breeding technique. An example is firefly in tobacco. Foreign DNA is inserted into a plant, usually using a specific bacteria, and is random. Traces of the insertion remain. These plants are grown widely around the world, the most common being herbicide tolerant (Roundup ready maize, canola), insect tolerant (bt maize, eggplant), and virus tolerant (pawpaw in Hawaii). No GE plants are grown in NZ. However, in laboratories in NZ, trans-

Tobacco plant with firefly gene.

genetic organisms are being developed, i.e. medicines, such as insulin, and vaccines. Foods are imported that are genetically modified, e.g. canola and soybean. In NZ there are no field trials, which may be permitted when controlled. There has been only one release, an equine flu vaccine, the use of which is very tightly controlled. The scientists at the forum were very critical of the costs and difficulties, particularly the public submissions, of the application process for permission to conduct trials. This pushes ownership and development of the technology offshore. Furthermore, because the legislation is such a handbrake on research, no one can see how the technology can be marketed, further reducing capital available for development. The USA is unregulated, Australia is unregulated if gene inserts are minor, Chile and China proceed on a case-by-case basis, the EU is fully regulated, and Argentina is unregulated if no new genetic material is used.

NEW GENE EDITING SYSTEM The most recent (exciting) development in the molecular biology field is an editing system, CRISPR. This is derived from a naturally occurring bacterium defence mechanism which ‘snips’ small sequences of DNA from interlopers (attacking organisms) and copies them into its own genome for future identification should the bacterium attack again. The

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

clever part is that scientists have adapted this discovery so that any specific DNA sequence in a collective DNA ‘book’ can be identified, selected, removed and replaced. The introduced sequence can even be removed and the original sequence reinserted. In plants, with CRISPR, we can already reduce seed shedding in ryegrass, increase seed size and number in crops, reduce abiotic stress, enhance disease resistance, improve digestibility and herbicide tolerance, edit neurotoxin genes in endophytes, and speed breeding in tree crops. Dr Suzanne Rowe from Agresearch described how, over eight years, the company has bred a functional sheep with a 24% reduction in methane emissions. This is not genetic engineering/gene editing, just conventional selection technique and has cost $10 million. GE has been attempted and 600,000 DNA markers have been identified but not successfully sequenced yet. The researchers still cannot find a gene of larger effect for gene editing. In any case most emissions are from cattle.

TRYING TO MODIFY MICROBES Dr Travis Glare of the Bio-Protection Research Centre spoke interestingly on modifying microbes to increase their efficiency in primary industry. His focus is on killing insects. Due to chemicals meeting resistance, or being seen as potentially carcinogenic, there are demands for more biological, environmentally friendly methods to control weeds, pests and diseases. These are called biopesticides, and may be a virus, bacterium or a natural product derived from a plant. The genomes in these organisms are easily modified and scientists working in this area do not really need genetic modification or CRISPR. We already use biopesticides in human and veterinary medicine, e.g. insulin from a pig’s pancreas. These microbes have different methods of operation, i.e. direct infection, toxicity, induced resistance, resistance priming, hyper parasitism, competition and antibiosis. Examples are Beavaria and metarhizium, both of which have a scorpion toxin inserted. Beavarium kills insects 15 times faster than in its natural state, with a 40% lower kill time. Metarhizium kills mosquitoes nine times faster and caterpillars 22 times faster. 81

Despite these successes, this technology is only 5% of the pesticide market. Dr William Rolleston, a former Federated Farmers president and co-owner of South Pacific Sera, a South Canterbury-based blood product business, spoke about the history of molecular biology in New Zealand. The Royal Commission in 2000 disagreed with activists who argued risks of misadventure from genetic modification were so great that all GM should be stopped, and recommended the country should proceed with caution. According to Dr Rolleston, the past 20 years has seen claim and counterclaim, with more caution than process. The CRISPR-Cas9 discovery has, however, been a significant development because it is very precise.

ANIMAL ORGANISMS DIFFICULT Prof Peter Dearden, an insect geneticist who is very interested in keeping insects alive, suggested that while CRISPRCas9 has made genetic modification on animals possible, gene editing animal organisms is in fact very difficult. Very few animal organisms have actually been gene sequenced (flies, mice very badly) so nearly all the gene editing possibilities for animals have been done on models. For example, honey bees can be gene edited to resist insecticide sprays, but this has raised concerns about ‘Frankenbees’. Wasps, a major predator of bees in NZ have been gene sequenced but we do not yet know how to edit that sequence, how effective the editing would be, or whether the wasp would become predatory on other organisms (wasps are not a pest in Europe). While gene editing is said to be very accurate, there is a very great difference between editing (removing) one sequence in a species, and introducing DNA into a sequence. The latter is definitely genetic engineering. Deardon’s opinion is that there cannot be a sensible conversation with the NZ public until the risks are known.

Wasps, a major predator of bees in NZ have been gene sequenced but we do not yet know how to edit that sequence or how effective the editing would be.

Plant biologist Prof Andy Allen says the world’s most important crises are climate and population, and by 2050 there will be another one billion people on earth, requiring a 52% increase in food production since 2010. That means another 600 million hectares for food production (an area twice the size of India) which will increase CO2 equivalent emissions by 15 gigatons. Allan explained how a 60-year conventional breeding process to obtain a red-fleshed apple can be reduced to seven years by introducing DNA to make the plant constantly flowering, then removing that DNA when the red-fleshed state is reached. Another example is the kumato, a wide cross between a tomato and a near relative sells for $11/kg compared with $6/kg for a tomato. Conventional breeding techniques

require 300 million molecular changes; using gene editing only four base pairs need to be changed. This is not allowed under current legislation. I do not pretend to be an expert in molecular biology, I thought I would give it a crack. The technology has clear benefits, both for human health treatments and nutrition outcomes. The rest of the world, the European Union aside, is moving forward on this. There is expected to be increased pressure on feeding a warming world and a growing world population, such that improved food and science efficiency will be required. While there are risks, we at least need to debunk naysayers with informed debate. • First published in Country-Wide March 2021. • Tom Ward is a South Canterbury-based farm consultant 027 855 7799, tfward@xtra.co.nz

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DAIRY BUSINESS OF THE YEAR

DAIRY BUSINESS OF THE YEAR 2021

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You can purchase Mark’s book from; Any booksto E-book.

WELLBEING 4-WHEEL DRIVING

Please see the Hillseekers4WDnz Facebook page for video best top tips and tricks for driving through rivers.

Good management beats good luck Everyone has those moments when you think ‘phew, that was a lucky escape!’ Harriet Bremner says we should be doing all we can to avoid those moments by considering the risks and planning for them. Harriet Bremner and Poppy.

nowledge is something that comes after being exposed to plenty of different ‘experiences’ in life along the way. We have experiences that range from relationships, careers, hobbies and life in general. These help to mould us as a person and help make us who we are right now, in this moment. When I read Mark Warren’s caption ‘Experience is the thing you get a split second after you need it’, in his book Many a muddy morning, it really made me think. My mind raced back to all those defining moments where I wish I had known better before I delved into them. We have all had those moments, the ones where you know just how damn lucky you were to walk away from it. I often hear people trying to justify why they are not wearing their seatbelt on the farm. Like seatbelts in general, we hope we will not need to use them and when we are pottering along behind a mob of cows at 10km per hour we don’t think anything could go wrong. Suddenly, an animal breaks back and you put your foot down to catch up with it, not seeing the bull hole in the long grass then ‘BANG’. It literally happens so quickly and leaves you wishing you had buckled up or not worried about the getaway cow in such a hurry. Left with a head injury and time off work, making it click would have been the simple answer, along with not driving like an idiot. Terrain changes all the time on farms and yes, flat farms are at lower risk of something going wrong for obvious reasons. We need to be looking at the theory of ‘it could happen to me 84

Mark at his home farm; Waipari.

and what am I going to do to avoid that in the first place’, rather than, ‘it will never happen to me’. Being able to stop in the moment and assess this can save you from an ongoing injury or the loss of your life. Life and its continuous curve balls doesn’t always operate in an accommodating way. When I think back, my defining moments where it could have so easily gone wrong were good luck, not good management. This is why we need to be able to stop and think about something before we do it. Through reading Mark’s book, I realised that there were ways in which he taught about how to ‘stay safe’ without specifically using those words. Dairy Exporter | www.nzfarmlife.co.nz | March 2021

HILLSEEKERS 4WD

handy hints:

Keep the wheels turning at ground speed – so not spinning or locked up. A locked wheel is a disobedient one. Most good off-road driving is totally counterintuitive. Coming down a steep hill, you can use your brakes to slow the engine, but not the wheels. The most effective off-road driving is when RPM is at peak torque not peak revs. If you’re stuck or in slippery situations, letting the air out of your tyres can give a huge increase in traction.

You can purchase Mark’s book from; Any bookstore or Am E-book.

Please see the Hillseekers4WDnz Facebook page for videos of Mark best top tips and tricks for driving through rivers.

A quarter drop in profile height can give a 250% e as an or Amazon onlin increase in traction. ; Any bookstore se Mark’s book

You can purcha E-book.

from

me some of his of Mark teaching ok page for videos bo ce Fa z Dn 4W ekers Please see the Hillse ough rivers. tricks for driving thr d an s tip top best This, to me, clarifies the fact that health and safety is something that we should be ingraining in our everyday farming business and not, as I have said many times, something that is done in the office on a rainy day. Mark runs Hillseekers 4WD and when he is not farming, he travels around the country running workshops. He teaches people practical skills and gives them the tools they need to cope with things like staying within the laws of gravity, how to drive on icy terrain, hills, mud, rivers and more. Mark believes that one of the first steps you can take to looking after yourself is to make sure that you are using the right vehicle for the job. Not all are alike and if you throw yourself into a situation It is so important to keep your head and hands inside the roll cage. To in the wrong one, it goes pear-shaped quickly. We have access to avoid being injured by the cage you must be wearing a helmet and different types of vehicles, so we need to make your seatbelt. sure that we are using the one best suited for the job. Too often we are putting ourselves at Take a look at Safer Farms Facebook page unnecessary risk when it could so easily videos for Mark’s tips on river crossings and be done in a far better way that has a using tyre pressure for increased traction. good outcome. Think about it like this: if you actually need to really use your www.facebook.com/SaferFarmsNZ/videos seatbelt, what on earth are you doing putting yourself in that position to begin Please see the Hillseekers4WDnz Facebook page with? for videos of Mark teaching me some of his best And as Mark says, “To achieve your top tips and tricks for driving through rivers. goals, aim for the sky – but keep your driving wheels firmly grounded”. You can purchase Mark’s book from; Any bookstore or Amazon online as an E-book.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

DAIRY 101 TEAT SPRAYING

Teat spraying vital for happy cows

Story and photos by: Karen Trebilcock

here was a time, not that long ago, when spraying teats with water after milking was considered a good idea. Luckily, for our cows and our budgets, we now know adding teat spray to that water is essential. Teat spray is a mix of usually iodine or chlorhexidine, which kill bacteria, and emollients such as glycerine that keeps the skin of the teat supple and helps to prevent cracks. It’s been proven to reduce mastitis in lactating cows by 50%, meaning happy cows and happy farmers. The bacteria that causes mastitis isn’t great at moving around on its own, but after milking the teat canal is open and 86

when cows move, such as when they are walking back to their paddock, it causes pressure gradients in the canal. These pressure gradients can cause any liquid to be sucked up, and the mastitiscausing bacteria hitch a lift with it into the udder. Teat spray kills many of these bugs. As well, teat sprays are pH-skin-friendly and the emollients in the spray encourage healing. It’s hand cream for cows. And just like cracks in your hands, cracks in teats give bacteria a place to hide and are also painful, especially when the cups are put on. Cows with cracked teats will often kick and won’t let down properly, so keeping the teat skin smooth and supple improves milking out and increases milk yield. And if a teat is in perfect condition, there are fewer places for bacteria to hide.

Many teat sprays also include a nonstaining dye so you can see the coverage of the spray on the teat. Always mix it according to the directions on the label. Don’t water it down to save a few dollars – the recommended concentration is there for a reason. Most have a limited shelf life so make sure you use it within the time frame printed on the container. Also be careful with the water you add to the teat spray – using contaminated water is defeating the purpose of teat spraying. A dedicated jug for measuring will prevent cross contamination with other dairy chemicals. Of course, getting the teat spray on the teat is the difficult bit. You want good coverage of all four teats after every milking.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Cows aren’t wonderful at staying still for this. They’re not keen on getting anything sprayed on them, however pH-friendly and good for them it is. Different teat sprayers have tried to overcome this and there are a fair few to choose from and a wide range of prices. Starting at the bottom of the price range is the good old hand pump container that you can simply carry from cow to cow after the cups come off. Great for herringbone dairies and it gives staff something to do while they wait for the next row to come in. The downside is it is up to your staff to make sure there is good coverage, especially on the hard-to-reach front teats that are even more difficult to see. No one wants to put their head down into the firing range of a good kick. Hand pump sprayers also only contain so much teat spray, so if the herd is large you will need to fill it up again during milking. They also easily get lost and if there is no teat sprayer where it needs to be and the row is walking out there is nothing you can do. And you also have to pump them, a lot. The next step up is a manual pressurised system – no need for pumping but you still have to remember to use it and it’s up to the operator how good the coverage is. In herringbones there is usually one dropper every four cows and in rotaries there are often a couple at cups off. With a reservoir and a pump, usually installed in the milk room, there is no running out – unless you forget to fill it at the start of milking. Next are the automatic systems that either spray the teats while the cow is still in the bail (rotaries) or when the cow walks over a sensor as they leave the dairy. These generally use more spray than the manual systems but, if you also have automatic cup removers, you don’t need a person at cups off in a rotary. With in-bail sprayers, usually installed where the leg spreaders are, care has to be taken the auto teat spray sensors are not triggering and spraying udders while clusters are still attached. If it gets in the milk there will be spray residual penalties from your milk company. Another way it can get in the milk is if a cow kicks off her cups and then is sprayed before being recupped. Walk-over systems have their own problems. They can create difficulties with cow flow leaving the dairy because cows have to line up to go through the system. Wind can blow the spray around and some cows just hate them and will run and even jump to avoid getting sprayed. Whatever system you choose, the teat spray has to cover the whole teat, not just the end, to be effective. And whether it is human-powered, or automatic, regularly check this is happening. Otherwise you’re just wasting teat spray. Once a week visually check cows after being teat sprayed to make sure coverage is on all four teats and the entire teat is covered. If your somatic cells are climbing on your milk docket, the first thing you should do is check your teat spraying. Dairy Exporter | www.nzfarmlife.co.nz | March 2021

As cows leave the dairy they are vulnerable to mastitis bugs.

And use teat spray all year round. You may think the risk of mastitis is highest at the start of the season so slacking off later on is no big deal. But it is to your cows. Sunny days and hotter temperatures dry the skin of the teat so cracks can happen more easily and cracks mean kicked off cups and the increased risk of infections. Do your cows and yourself a favour and teat spray all season.

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SOLUTIONS What’s NEW? BREEDING STRATEGIES

Unlocking efficiency with Three Way Cross

he future of onfarm efficiency comes down to breeding cattle that can combine feed conversion efficiencies, superior health traits, dairy beef capabilities, and the herd’s overall ability to get back in calf each year, believes Samen New Zealand. By utilising breeds that are superior in these fundamental traits in a Three Way Cross programme, it’s proven to increase production and profit due to hybrid vigor. The Three Way Cross breeding programme allows dairy farmers to establish a level of hybrid vigor much higher than a Two Way Cross. Maintaining a steady level of heterosis of around 86% can give farmers a solution to unlocking superior traits within their herd. Reducing wastage and increasing efficiency can give farmers more time with their families while ensuring the business’s sustainability and profitability. It is no secret that hybrid vigor is the key to crossbreeding success, in-fact crossbreeding has been a contributing factor to growth in efficiencies within the beef, swine and poultry industries for years. Moving to a Three Way Cross breeding system empowers dairy farmers with the ability to access bloodlines their herd has never had access to before. This can eradicate the negative effects of inbreeding such as yield, fertility, health and longevity. For a large portion of NZ cross breeders who currently use a Friesian x Jersey, Samen recommends introducing the VikingRed as their third breed. The VikingReds have a lot to offer the current two way crosses and bring incredible health, feet and legs and superior fertility. For many cross breeders, there are a few other options that are going to help optimise feed conversion efficiencies, dairy beef capabilities and fertility issues. NZ farmers are already using various breeds to gain benefits such as; • Adaptability to climate change (heat and cold tolerances), alpine breeds are extremely versatile when it comes 88

Above: Cows grazing are Three Way Cross animals with Montbeliarde, VikingRed and Holstein Friesian. Left: A VikingRed Daughter of VR Fastrup Fenton.

to temperature. Originating from conditions as low as -10 degrees in the evening and scorching daytime temperatures of 40+ degrees. • Reduction in the use of antibiotics (improved udder, hoof and general health): it is important that our herds of the future have natural resistance built up to illness such as mastitis. • Increased environmental sustainability: Smaller rumens lead to less methane, more muscle means more nitrogen is utilized leading to less methane and nitrogen returning into pastures. • Zero Bobbies: with superior feed conversion efficiencies, many of the Three Way Cross breeds are top dairy performers and produce quality beef offspring.

• Introduce polled: a large variety of proposed breeds are naturally available polled. • Reduced metabolic issues: each year metabolic issues cost farmers money in terms of cows and production. • Improved Fertility: in numerous studies alpine breeds have been shown to have superior fertility traits to traditional dairy cattle used in NZ. • Longevity: a commonly overlooked trait that has huge implications as to how efficient a herd can be is the longevity trait. The exciting part is that while Samen uses specially selected sires from world leading breeding programmes for NZ pasture based systems, a huge portion of these additional breeds are already performing in NZ herds. According to Samen, this proves these other options are already leading the way into the future of efficiency. Other popular breeding options include: Fleckvieh, Norwegian Red, Montbeliarde, Normande and Abondance.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

SOLUTIONS What’s NEW? NITROGEN REDUCTION

Using diagnostics to monitor mastitis

A Reducing nitrogen

oing under 190 units N/ha is achievable with the new Tow and Fert Multi 500. According to the company, its customers across New Zealand are reducing nitrogen use and already meeting the restrictions due to come in on 1 July 2021. Many farmers have noted they are growing more grass. Foliar application of fertiliser, especially nitrogen, is proven to reduce inputs, increase fertiliser efficiency and reduce leaching and runoff. The Tow and Fert Multi 500 is the latest addition to the company’s fleet and brings the Tow and Fert System within reach of farmers. Designed for smaller farms, those wanting to trial the system or requiring a second machine, the Multi 500 brings all the technology of its larger fleet in an easy to use package. The offering features: • A sturdy 500 litre tank. • 3-4 hectare coverage in 20 to 25 minutes. • Dissolve 200kgs of urea/DAP or keep 350kgs of lime in suspension. • Mix and apply mag oxide days in advance of grazing. • Tow behind an ATV. • Made in NZ with the Metalform quality guarantee. • Two inch Metalform stainless steel pump. • Apply thistle spray at the same time as your urea. • Follow right behind the cows as they head up the race for milking. Perfect for towing behind an ATV or side-by-side, the Multi 500 is the machine to get farmers started on a more sustainable level of inputs on their farm.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

nalysis by Mastatest has found that over 20% of mastitis cases may not need to be treated with antibiotics. The results of 17,000 mastitis tests conducted by the company during the period 2018 to 2020 has provided insights into what’s happening with mastitis bacteria in New Zealand. Mastatest is an onfarm diagnostic tool that allows farmers to identify the bacteria involved in the mastitic milk sample and which antibiotic is most effective to treat it. Mastatest’s tests found that 23% of mastitis cases in NZ can potentially be left untreated without an antibiotic. Of these cases, 11% showed no bacterial growth, indicating that the cow’s immune system may be curing it, and 12% of cases involved gram negative bacteria that antibiotics have little impact on. There are also trends with a bacteria, Staphylococcus aureus. Mastatest data shows 40% of Staphylococcus aureus are sensitive to penicillin and 40% are much less likely to cure. Treating it with the most effective antibiotic will improve the chance of success. In these changing times, it is critical that farmers only use antibiotics when needed and use the correct antibiotic for the bacteria causing the mastitis. It is possible to know this by either traditional milk culture that takes up to three days to get a result, or by using Mastatest to get a result in 24 hours. This will improve the chance of curing the infection and help to reduce the risk of antibiotic resistance developing. It is recommended to treat mastitis cows with pain relief immediately when found to improve cow welfare, then take a milk sample to run on Mastatest, and wait 24 hours for the results before treating with the appropriate antibiotic. Using Mastatest could lead to a higher chance of getting the cow back into full milk production sooner.

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OUR STORY 50 YEARS AGO IN NZ DAIRY EXPORTER

50 years ago in the Dairy Exporter March As NZ Dairy Exporter counts down to its centenary in 2025, we look back at the issues of earlier decades. 50 Years Ago – March 1971. Cover photo: A northern herd lazily confronts man and dog across a patch of summer shade.

BRITISH PM’S ASSURANCE TO BOARD CHAIRMAN

While in Britain last month for quota negotiations, Mr F. L. Onion, CMG, Chairman of the Dairy Board, called on the Prime Minister, the Rt Hon. Edward Heath, at 10 Downing Street and in a halfhour of discussion again emphasised the vital importance to New Zealand of special arrangements for our dairy produce in the event of Britain’s entry to the EEC. “Mr Heath repeated the assurance which he had given me and the New Zealand Government last year and said he and his Ministers are continuing to press the case as presented for favourable conditions for our dairy products,” Mr Onion said. “It is likely to be July or August, or even later, before negotiations for British entry into the EEC will be concluded. This is a time of uncertainty for our pastoral industries and for New Zealand as a whole,” said Mr Onion. “We must look at the facts realistically. Demand for our products in the United Kingdom is as strong as they have ever been, while the demand in other countries is increasingly steady. “The so-called ‘butterberg’ of Europe has

disappeared; so also has the former surplus of milk powder. The EEC has reduced its export subsidies on butter and milkfat several times in recent months, with the result that there is a general upward movement in world prices for these products.”

CHANGE IN DEMAND FOR AB BREEDS

This is the first year in which more Friesian than Jersey semen appears to have been used in the Dairy Board’s AB service, according to the Senior Research Officer of the Board’s Farm Production Division, Mr P. Shannon. He told the last meeting of the Herd Improvement Council it was estimated that Friesian accounted for 52 per cent, Jersey for 42 per cent and other breeds for 6 per cent of all semen used. The Director of Farm Production, Mr J. W. Stichbury, suggested the Board should buy equal numbers of Jersey and Friesian bulls for its sire proving scheme until the pattern of use had settled down. In the Board’s 1969-70 cow census the proportion of herds in which Jersey blood predominated was 73 per cent and in which Friesian blood dominated, 9 per

cent. The proportion of herds which were predominantly Friesian-Jersey first cross was 3 per cent.

FARMCHAIR THOUGHTS – DIFFICULTIES

While the government is becoming concerned over the welfare of the farmer, the average man in the street is completely ignorant of the difficulties being faced by a large percentage of those on the land. In spite of the alleged substandard conditions under which employees in some of our key industries have to work, other industries seem to have the utmost difficulty in persuading them to try a change of employment. This suggests that taking everything into account, these strike-plagued industries aren’t bad places to work in. Farmers independently and collectively are trying to weather the present storm by increasing efficiency, lowering costs where possible (less employed labour, marginal levels of maintenance) by exploring and where the margin dictates a change, moving into other avenues of farming, and by diversification. • Thanks to the Hocken Library, Dunedin.

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

DairyNZ consulting officers

March Events

North Island – Head: Rob Brazendale 021 683 139 Northland Regional Leader

Leo Pekar

027 211 1389

Far North

Amy Weston

027 807 9686

Lower Northland

Hamish Matthews

021 242 5719

Whangarei West

Ryan Baxter

021 809 569

Regional Leader

Wilma Foster

021 246 2147

South Auckland

Mike Bramley

027 486 4344

Hauraki Plains/Coromandel

Michael Booth

021 245 8055

Te Aroha/Waihi

Euan Lock

027 293 4401

Cambridge

Lizzy Moore

021 242 2127

Hamilton

Ashley Smith

027 807 3049

Huntly/Tatuanui

Brigitte Ravera

027 288 1244

Matamata/Kereone

Frank Portegys

027 807 9685

Pirongia

Steve Canton

027 475 0918

Otorohanga/King Country

Phil Irvine

027 483 9820

Waipa South

Kirsty Dickens

027 483 2205

Regional Leader

Andrew Reid

027 292 3682

Central Plateau

Colin Grainger-Allen

021 225 8345

South Waikato/Rotorua South

Angela Clarke

027 276 2675

Eastern Bay of Plenty

Ross Bishop

027 563 1785

Central Bay of Plenty

Kevin McKinley

027 288 8238

Regional Leader

Mark Laurence

027 704 5562

South Taranaki

Ashely Primrose

027 304 9823

Central Taranaki

Mark Laurence

027 704 5562

Coastal Taranaki

Mark Laurence

027 704 5562

North Taranaki

Ian Burmeister

027 593 4122

Horowhenua/Coastal and Southern Manawatu

Kate Stewart

027 702 3760

Wairarapa/Tararua

Abby Scott

021 244 3428

Eketahuna

Rob Brazendale

021 683 139

Hawke's Bay

Gray Beagley

021 286 4346

Northern Manawatu/Woodville

Janine Swansson

027 381 2025

Central Manawatu/Rangitikei/Whanganui

Rob Brazendale

021 683 139

Waikato

Explore your options Want to know what the future looks like for your farm? Find out at a DairyNZ Explore Your Options event near you. Visit dairynz.co.nz/events.

Bay of Plenty

20 21

29 | APRIL HAMILTON

Taranaki

Join DairyNZ’s Farmers’ Forum 2021 Farmers’ Forum 2021 is coming to Hamilton on 29 April with a range of speakers, and interactive sessions, designed to help you sustain success on-farm.

Lower North Island

Southland farmers can join a local livestream of keynote speakers, while farmers nationwide will be able to join two Forum speaker webinars in May. The Forum is free for levy paying dairy farmers and their teams register at dairynz.co.nz/farmersforum.

South Island – Head: Tony Finch 027 706 6183 Top of South Island/West Coast Nelson/Marlborough

Mark Shadwick

021 287 7057

West Coast

Angela Leslie

021 277 2894

Regional Leader

Rachael Russell

027 261 3250

North Canterbury

Amy Chamberlain

027 243 0943

Central Canterbury

Alice Reilly

027 3798 069

Once a day conference

Mid Canterbury

Hugh Jackson

027 513 7200

South Canterbury

Rachael Russell

027 261 3250

Once a day conference is back for 2021! Taking place in sunny

North Otago

Alana Hall

027 290 5988

milking conference

2021

Canterbury/North Otago

Do it once

t do it righ

Southland/South Otago

Nelson on 5-6 May 2021.

Regional Leader

Ollie Knowles

027 226 4420

If once a day or flexible milking has got you curious, or if you’re

West Otago/Gore

Keely Sullivan

027 524 5890

already a convert, this conference is for you.

South Otago

Guy Michaels

021 302 034

Northern/Central Southland

Nicole E Hammond

021 240 8529

You’ll experience excellent speakers, success stories and

Eastern Southland

Nathan Nelson

021 225 6931

entertaining debates that will challenge your thinking.

Western Southland

Ollie Knowles

027 226 4420

dairynz.co.nz/oad-conference

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

0800 4 DairyNZ (0800 4 324 7969) I dairynz.co.nz WITH DAIR

We’ve been working together to improve New Zealand’s genetic wealth. Your share is right here.

Farming and science are an inseparable partnership. You put in the hard yards on the farm, we continue to make discoveries in the lab. Since 1994, LIC has invested over $78 million in genomic science to improve genetic gain and productivity. Together, we’ve built a bank of incredible genetic wealth which you as dairy farmers share. Confidence in the science is growing and the use of Genomic Sires is expected to exceed 1.4 million inseminations. Our drive to achieve better never stops and our latest breakthrough with Single Step Animal Model has improved genomic prediction accuracy by 8% - enabling you to make faster improvements to your herd’s breeding worth and profitability. Use LIC’s Genomic Sires to take your share of the genetic wealth built by shareholders for over 30 years.

KINGST_1423_NZDE_C

Talk to your Agri Manager about utilising your share, right now.

There's always room for improvement 92

Dairy Exporter | www.nzfarmlife.co.nz | March 2021

Dairy Exporter March 2021

Articles inside

The Dairy Exporter March in 1971

Unlocking efficiency with Three Way Cross

Lowering nitrogen without breaking the bank

Teat spray equals happy cows

Health and safety when going off-road

Genetic engineering now editing

Feed additive promises to cut methane emissions

Irrigation, hunting the life for Lincoln University student Jack Taggart

MPI’s new chief biosecurity officer talks Mycoplasma bovis

exports Ways to reduce your farm’s footprint

Opinion: Investment in innovative food companies on rise

Tetraploid ryegrass, clover could lower nitrogen levels

South Taranaki couple find value in autumn calving

Northland dairy farmers breathe new life into drought pastures

CO Diary: How to be a good boss

Southland SMASH info day supports sharemilkers

Growth: Cor and Christine Verwey are now multiple farm owners

Succession: Creating a workable farm succession plan

Lessons from Covid-19: Keep calm and carry on farming

Waikato farmers Nic and Kirsty Verhoek would welcome a bit of rain

Frances Coles takes stock in autumn

George Moss is confident of a bright future

John Milne checks out summer crops for his West Coast farm