Dairy News 14 June 2011

Government’s uphill battle to sell biosecurity reforms Page 3

nothing can Men, gear over beet this the paddocks june 14, 2011 Issue 248

www.dairynews.co.nz

Sweet-tooth cows Page 28

Light and tough Page 43

New waikato Feds boss “We need to eliminate bad eggs from the industry.”

- James Houghton, Pukeatua PAGE 4

When it comes to getting the most from your herd, Rumensin is a clear winner. Improved rumen feed ef ficiency provides more energy for the team with a proven increase in milk protein yield and protein/fat ratio. The result is more milk protein and a higher ef fective milk solids price for you.* And with over 2300 scientific papers to it’s name, there’s plenty of evidence that Rumensin will have your herd taking the honours all season long!

I N - L I N E W A T E R | I N - F E E D | D R E N C H | 1 0 0 - D AY C A P S U L E *Rumensin improves the protein/fat ratio of milk in treated herds, increasing the actual milk price received in these herds. Available in water Trough Treatment, drenchable Liquid, 100 day capsule and in-feed Premix, from leading animal health stockists. Elanco Animal Health, a division of Eli Lilly and Company (NZ) Limited, Botany Junction, Auckland 2016. Helpline: 0800 ELANCO (352 626). Registered pursuant to the ACVM Act 1997, No’s. A3553, A9676, A7450, A8278.

Dairy News // june 14, 2011

3

news

Carter struggling to sell biosecurity plan Fonterra also opposes controversial industry agreement PETER BURKE

New owners almost finalised for NZDL.

Page 5

Helping farmers lift compliance Page 14 rates.

Kitting up for calving

Page 36

News........................................................... 3-21 Opinion..................................................... 22-23 Agribusiness............................................26-27 Management...........................................28-31 Animal Health..........................................32-36 South Island Dairy Event.......................37-40 Machinery & Products...........................41-46

SOME LARGE agribusinesses, including Fonterra, are still reluctant to buy into the Government’s controversial industry agreements on biosecurity (GIA).

Agriculture Minister David Carter admits some remain unconvinced about the scheme, which proposes sharing biosecurity costs among the private and public sectors.

Carter met primary industry leaders recently to discuss GIA. The majority of those attending support GIA. Some, including Fonterra do not, he says.

“The industries are worried this is the thin end of a wedge, an attempt by a future government to start removing itself from a core Crown responsibility,” he told Dairy News. “But as long as I’m Minister for Agriculture I accept biosecurity is a core Crown responsibility.”

But industry leaders are not convinced over the longterm funding implications. The KPMG Agribusiness Agenda 2011, released last week, highlights industry concerns.

The report says some leaders expressed the view the proposals appear to have been driven “more by Treasury than good science”.

“They suggest any savings generated would soon be exhausted in the event of a severe incursion an industry sector had not planned for.

“The crux of the argument voiced by those opposing the GIA structure is that the economic contribution of agriculture is so dependent on robust biosecurity that it’s too much of a gamble to leave it to a mechanism that makes some of the funding discretionary.”

KPMG head of agribusiness Ian Proudfoot says opinion is divided on GIA among industry leaders.

A small camp is open to sharing costs and driving biosecurity reforms but a bigger camp is not prepared to share costs.

“The issue needs to be resolved in a way that does not compromise our biosecurity,” says Proudfoot.

Federated Farmers biosecurity spokesman John Hartnell says

Primary sector exporters are questioning the need to pay for biosecurity.

“The industries are worried this is the thin end of a wedge, an attempt by a future government to start removing itself from a core Crown responsibility.”

– David Carter making the primary sector share biosecurity incursion costs raises big questions about culpability if GIA is introduced.

“As any GIA would be triggered by a biosecurity failure, financial and legal responsibil-

ity will fall somewhere. Industry and insurers would undoubtedly look to recoup what could be billions of dollars from those responsible for the failure.

“GIA’s are a blank cheque with Government left to fill in the sum the primary sector would fund. It doesn’t matter if you produce for the domestic market or not, industry would be left to fund the clean-up including compensation and ongoing costs.”

Carter acknowledges that within the primary sector there are differing views on MAF performance in dealing with biosecurity. But he’s satisfied with MAF’s processes and responses to dealing with any biosecurity issue.

More on KPMG Agribusiness Agenda 2011 Pages 7-9.

4

Dairy News // june 14, 2011

news

‘Bad eggs, must go’ SUDESH KISSUN

NEW WAIKATO Federated Farmers

president James Houghton, Pukeatua, believes strongly in social responsibility. He wants to use his tenure to help remove the “bad eggs” giving the industry a bad name.

Houghton, who last month succeeded Stew Wadey, says farming practices must instil pride in dairying. He admits a small group of farmers make life difficult for the majority.

“Most new rules drawn up by regional councils are for 5% of farmers,” he told Dairy News. “We need to eliminate bad eggs from the industry.”

Houghton agrees effluent noncompliance remains a sticking point for the industry.

Feds, Fonterra and DairyNZ are working together on initiatives to reduce cases of no-compliance with effluent management rules.

It includes Fonterra’s ‘every farm every year’ programme, where the co-op will annually check every farm’s dairy effluent infrastructure every year. Systems at risk of non-

compliance are referred to a sustainable dairying specialist.

The Waikato Regional Council(WRC) monitors farms by helicopter. It says 11% of the farms it looked at significantly failed to comply with regional effluent management rules this year, compared with 25% of farms monitored by air and ground last year.

Houghton hopes the industry’s education programme will improve compliance. The onus is on farmers to comply with rules every day, in such simple matters as moving effluent irrigators regularly to prevent nutrient run-off.

Some farmers argue they mostly comply with effluent management but were caught short on the day the aerial surveillance was carried out.

Houghton compares effluent compliance to a warrant of fitness for cars.

“If you get a warrant that doesn’t mean your car will be compliant for the next six months. If your tail light fails and you’re stopped by the cops, you can’t say because the car has a WoF it is compliant. The onus is on us to make sure we comply with the rules every day.”

New Federated Farmers Waikato president James Houghton.

Houghton hopes to continue working with WRC so both parties understand each other and tackle non compliance.

Houghton was previously Federated Farmers Waikato dairy chairperson and has been a member of the Federation for much of his farming career. He owns a 114ha farm and leases an extra 60ha. With 530 crossbred cows the farm produces 200,000 kgMS/year.

Houghton says he is stepping “into some pretty big shoes, but fortunately Stew Wadey has taught me well. The new provincial team mixes new talent with experience as well as

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news

NZDL sale at advanced stage sidiary was “still in the advanced stage of the process.” He declined to tell when a deal might be announced, or the nationality of the party or parties involved.

Suppliers seem relaxed the sale process is not over.

“I’ve no major concerns at this stage,”

ANDREW SWALLOW

SOUTH CANTERBURY’S Russian-owned

milk processor New Zealand Dairies is in the final stages of being sold.

New Zealand chairman Richie Smith late last week told Dairy News the Nutritek sub-

said one, though he was a little disappointed the sale hasn’t been finalised before the start of the new season.

Strong commodity markets mean whoever buys the plant shouldn’t have a problem selling product, reasoned the supplier, hence his income should be secure.

NZSFU takeover snag A SMALL group of New Zealand

Farming Systems Uruguay shareholders is resisting the takeover bid by majority shareholder Olam International.

Spokesman Rob Poole says Olam’s offer of 70c/share is too low with net asset value nearer 85c/share.

Poole says he and three other significant shareholders, Kevin Goble, Graeme Edwards and Barry Brook, have worked as a co-ordinating group since last September. Via an email circulation list they have at least 90 minority shareholders – a very effective communication medium, says Poole.

“We have over 10% of the shares in Farming Systems on our list and we are confident from feedback received that most are rejecting the Olam offer.

“The group feels a higher price can be justified by the increasing land prices in Uruguay, the high level of milk prices and the way the NZFSU business is being managed.

“Returns are better and there is a large proportion of the total land area used as support land with only 46% planned to be milked on.”

Poole points to a recent sale of one NZFSU farm in Uruguay at an outstanding price – 26% above the value placed on the farm by valuers last month.

The business will always be underpinned by land prices which have continued to increase in Uruguay he says.

Olam has secured almost 83% of NZFSU. It can compulsorily acquire the remaining shares once it reaches a 90% stake.

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shareholder Bright Dairy, are not thought to be in the final bidding for the South Canterbury plant, though Synlait would not comment.

Smith says NZDL’s Studholme plant will again be full next season.

Synlait has a second dryer coming on stream for the 2011-12 season which will more than double the processing capacity at Dunsandel.

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he is “more curious than concerned” about who will be the new owner of NZDL. “I would prefer it was New Zealand owned but as long as they pay me on the 20th of the month that’s what really matters.”

Synlait’s purchase of Oceania and the supply agreements it held has seen some of NZDL’s supply go north. How

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kpmg agribusiness agenda 2011

Developing a plate to pasture strategy SUDESH KISSUN

NEW ZEALAND agribusinesses have been urged to embrace a “plate to pasture” strategy in developing markets.

The KPMG Agribusiness Agenda 2011 report says creating new brands in markets like China and India will be difficult. Instead, it will be easier to work with established companies in these markets and use our expertise and technology to grow popular brands.

KPMG head of agribusiness Ian Proudfoot says the clear message from its survey of 80 agribusiness leaders is development of future industry sector strategies must start in the market and then link back to our production capabilities.

“This is preferable to starting with a good idea and then looking for a market,” he says.

“If we are developing a solution that a customer already wants and sees value in, they are more likely to pay more for it and more quickly, than for something we think might be a good idea for them.”

The report points to recent media

Understanding new markets... the report says Asian consumers have different tastes.

commentary on demand for infant milk powders as supermarkets around Auckland have sold out of the product – much of it for export to China.

Chinese parents want to be sure about the safety of the milkpowder they feed their children, creating a significant market opportunity for New Zealand producers, it says.

“The challenge is determining the best form in which to export the product so that the return is maximised

for New Zealand,” Proudfoot says.

“Consideration needs to be given as to whether a product processed at higher cost here in New Zealand and exported in finished form can command a higher price because it is packed here.

“This needs to be compared to a product packed at a lower cost in China using commodity ingredients imported from New Zealand.”

Proudfoot says it will be hard for Fonterra or another exporter to create

new brands in China.

“It may be better to work closely with Nestle and Danone and other Chinese companies who have established brands.”

The report also talks about the need to better understand our markets. It notes the focus of our agricultural export markets continued to shift towards Asia during the past year. Consequently the need to understand the larder or fruit bowl of consumers in China, Indonesia, Korea and India is becoming increasingly important for the agricultural sector, he says.

“The Asian palate has a different taste profile to our traditional customers in North America and Europe, meaning many of the products we have traditionally produced are unlikely to appeal to Asian consumers,” Proudfoot adds.

“Until the industry clearly understands what attributes our new customers want in their products – the taste, texture, colour, shelf life and quality – we will struggle to create any real market traction, instead, recycling products that we have historically exported to European markets.”

Farm borrowing costs set to rise?

ANDREW SWALLOW

NEW CAPITAL-cover requirements imposed on banks will force them into a 0.5% rise in interest rates on farm loans rolled over from July 1, says KPMG’s Agribusiness Agenda.

But some fear this prediction is playing into the hands of lenders who have already made the necessary adjustments to capital reserves

and rates to cover their extra costs.

“The Reserve Bank has told us there probably won’t need to be that much change [in rates], which is alright for them to say, but if you’re in the banking business you’ll probably try to make a bit more out of the situation,” Feds economics spokesman Philip York told Dairy News.

He advises borrowers worried their rates are being hiked unreasonably to get quotes from competing lenders.

Though changing banks can at first seem daunting, once you’ve talked to others it can be easier than expected.

“They can probably do most of [the switching of automatic payments etc] for you,” York says.

Even if a farmer decides not to switch, holding information about what is out there will help in negotiations with a current lender.

Having done the rounds of Feds’ provincial annual meetings, York

says several major lenders are touting for new business.

That point is noted in KPMG’s Agribusiness Agenda report, which predicts the 0.5% rate rise.

York says he has heard suggestions rates will rise by more than that, maybe 1%, but his own view is banks have already built the extra margin into their rates to cover the cost of the Reserve Bank’s extra capital-cover requirement.

More on pages 8-9

Debt here to stay DAIRY IS among sectors set to

suffer an “overhang from debt driven expansion... for years,” says a major agribusiness report released last week.

KPMG’s annual Agribusiness Agenda singles out dairy and wine as “remaining highly geared” and while the report says industry leaders recognise the issue, it will take a long time for some to “extract themselves” from high debt because of the “negative equity position in which many businesses find themselves.”

“With land prices still at internationally high levels it is not surprising farm sales have been historically low in recent months,” states the report.

“In most cases, even with low interest rates the economics of investing in land at current prices does not make sense as it is not possible to make a cash return, even with the current dairy payout.”

Figures from a Knight Frank and Citibank global survey of land prices are used to compare New Zealand dairy pasture with overseas land, the KPMG report noting our pasture is “the most expensive.”

Easily accessible debt is blamed for fuelling “a land price bubble”. That bubble has “partially deflated” leaving many unable to sell without taking a loss. As of July 1, lending rates are likely to rise 0.5% due to new capital adequacy requirements imposed on banks by the Reserve Bank, warns the report.

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Dairy News // june 14, 2011

KPMG Agribusiness agenda 2011

Biosecurity our greatest fear Biosecurity to help guide direction, others believe it’s a false MAINTAINING A robust bieconomy.” osecurity system is the numProudfoot says some ber one issue confronting concern was expressed the primary sector in New that MAF’s response Zealand, says KPMG’s latest to some incursions Agribusiness Agenda. such as the tomato and The report is based on inpotato psyllid has not terviews with 80 agribusiness been as rapid or as exleaders, including farmers. tensive as the horticulIan Proudfoot, head of agriture industry would business, KPMG, told Dairy have liked.

News that industry leaders all “But they recogbelieved a major biosecurity nise there’s always incursion could have a “deeply going to be some level detrimental effect on their of balancing risk and respective industries and the most feel that where wider New Zealand economy.”

MAF’s drawn that “It’s clear biosecurity keeps line is about right,” industry leaders awake at night he says. more than anything else.”

But for pastoral Though the report says little farmers FMD is the specifically about biosecurity ‘biggie’. threats to the dairy industry, Proudfoot says that sector would be caught up while the introducand affected by any outbreak of tion of NAIT was foot and mouth disease (FMD). looked on by many But interviewees say the dairy Biosecurity is the number one issue confronting the as being an aid to industry has sufficient traceabil- primary sector, according to a new report. managing FMD, ity to deal with any problems. industry leaders are “They are confident they can try Agreement (GIA) proposed in not overly confident it will be as deliver the traceability the market biosecurity legislation show the useful as some hope. wants.”

Government is looking to shed Proudfoot says while MAF has Proudfoot says industry leaders more of the cost of biosecurity. improved it systems for dealing regard New Zealand’s biosecurity “While some industry leaders with FMD, even those systems system as world class. ”But they’re accept that and see the benefits of would be sorely tested in a real situconcerned the Government Indus- sitting around the table with MAF ation.

PETER BURKE

Potential to grow organics When it comes to getting the most from your herd, Rumensin is a clear winner. Improved rumen feed efficiency provides more energy for the team with a proven increase in milk protein yield and protein/fat ratio. The result is more milk protein and a higher effective milk solids price for you.* And with over 2300 scientific papers to it’s name, there’s plenty of evidence that Rumensin will have your herd taking the honours all season long!

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ORGANICS AOTEAROA New Zealand Chairman, Derek Broadmore is backing the call to develop organic production sector in New Zealand.

“The Agenda records the strong growth in organic sales internationally with 7.7% growth in the US market alone last year taking annual sales there to $US28.6 billion, despite the recession,” he says.

“International market research over the last few years has consistently shown that ethical food and beverages, made up of fair trade and organic products, has been the fastest growing segment

of the international food market, a market now worth in excess of $US55b.”

The value of New Zealand’s organic exports grew from $120 million to $170m in the two 2007 and 2009.

Broadmore says organic production is a natural fit with the image New Zealand wants to project as a clean and green country that is conscious of its environmental footprint.

“The organic sector wants to lead the way for all agricultural production in New Zealand to be truly sustainable”.

“The Agenda correctly notes that

New Zealand is being left behind by other countries that recognise the global demographic of a rapidly growing middle class that has the disposable income, and is prepared to pay for, high quality sustainably produced food and beverages.”

The report says given that organic products already generate export revenues of over $170m with well established markets including a growing dairy offering, it appears to be missing an opportunity.

“The opportunity to produce niche products that high net worth customers from around the world will be prepared to pay a premium for.

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MAF HAS told Parliament’s Commerce Select Committee no evidence has been found of anticompetitive milk pricing in the domestic market, but it’s still looking.

Radio NZ reported MAF spokesperson Iain Cossar told

the committee if it could be substantiated Fonterra was pushing up prices paid to farmers, that would raise concerns about competition.

But Cossar apparently made it clear that was not proven, and said price is driven by interna-

tional factors.

The committee said May 5 that it would ask MAF for a briefing on the regulatory framework in the domestic dairy market.

The Commerce Commission is also considering an investigation into milk pricing.

Dairy News // june 14, 2011

9

KPMG Agribusiness agenda 2011

‘Realise Maori farming potential quickly’ PETER BURKE

THE POTENTIAL of Maori farming in the New Zea-

land economy is noted in KPMG’s newly published Agribusiness Agenda report.

The report quotes industry leaders as saying Maoriowned agriculture incorporations and trusts help promote best-practice farming techniques.

KPMG head of agribusiness Ian Proudfoot says the industry leaders highlighted the need for Maori farmers to join the mainstream primary sector.

“As the long term owners of land, Maori… have the ability to [lead] in on-farm performance. They can also demonstrate what good sustainable farm management is on a long term basis.”

ganisations work closer together.

“It needs to be two way; there can’t be a them-andus attitude. There needs to be total collaboration. A key thing in the report is collaboration, the industry working together. The potential of the Maori sector needs to be realised quickly.”

Maori’s Miraka milk plant under construction near Taupo.

“It needs to be two way; there can’t be a them-and-us attitude. There needs to be total collaboration. .”

– Ian Proudfoot.

Need to raise business skills of Maori RAISING THE skills

of Maori farmers is getting the attention of Agriculture Minister David Carter and Maori Affairs Minister Pita Sharples.

The two are working together on this issue.

Carter says as the Treaty of Waitangi settlement pro- David Carter cess near completion, Maori farming will become even more important than now.

Some outstanding Maori farm performances we can admire, he says. But on the whole they perform less well than non-Maori farmers.

Three issues stand out: “Many properties are Pita Sharples multiple-owned and it’s difficult to get consensus amongst those multiple owners as to how best to go forward.

“Many of their governance structures aren’t professional and talented enough.

“They then tend to employ their own people, and I applaud them for that. But many of those younger people haven’t had good tertiary training in farm management.”

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The report says Maori are increasing their share of agricultural production.

Maori innovation in dairying includes building a dairy factory at Miraka, west of Taupo.

Proudfoot says he’s aware of developments and that it will be hard for any company to produce a better return than by putting milk through Fonterra, given its scale.

“It’s encouraging to see Maori organisations looking to lead their own destiny. But it’s important they consider opportunities in the mainstream sectors as well.”

Proudfoot says it’s critical for New Zealand that Maori farming entities and mainstream farming or-

10

Dairy News // june 14, 2011

news

Positive outlook for dairy ANDREW SWALLOW

DESPITE INCREASING milk supplies in the Northern Hemisphere and a good finish to the Southern Hemisphere season, international dairy prices remain well supported by tight inventory levels and solid import demand, says Rabobank in its latest Agribusiness review.

It follows a 4.5% firming of prices overall on Fonterra’s Global Dairy Trade platform at the start of the month, the first significant lift in the market since the beginning of March.

Drought in western Europe is limiting EU production and while US output is still growing, the rate of growth has dipped below 2% per month for the first time in over a year.

Meanwhile our mild and moist autumn meant “the 2010-11 season finished with a flourish following the remarkable recovery in milk flows during the second half,” notes the report.

Full season production is estimated to be up 4-5% on last season and a new record is anticipated.

Demand for all dairy products remain strong.

Meanwhile 2010-11 output in Australia is predicted to be only par with last year, though an increase for 2011-12 is predicted following Fonterra’s $A4.65/kgMS forecast.

June 1 saw skim milk powder surge 12.9% on GDT, reflecting the drought in the EU. Meanwhile whole milk powder slipped 3% overall, to $US3780/t. The dip was mostly in the near positions, bringing deliveries for three months, and 4-6 months out, virtually back

to the 7-9 month contract level of $US3723/t.

Rabobank notes that despite prices holding firm in US dollars, the soaring Kiwi means prices are, on average, 6% lower in local currency terms on last year, with WMP being 10% back.

“However, this didn’t deter solid announcements from Fonterra,” it adds, reflecting on the cooperative’s opening forecast of $6.75kgMS milk price for 2011-12 and repeat of its $7.50/kgMS milk

price prediction for 2010-11.

Exports from New Zealand in April were 16% higher than in 2010, China taking 5% more, and “a more significant increase” to Algeria.

Overall, Rabobank says the market for international dairy prices remains relatively settled.

That’s despite the world economic background of a looming fiscal crisis in Europe, possible slowing of activity in the US and wavering Asian growth.

World food output lags CITING DWINDLING stocks and only small production increases for most crops, a new United Nations report released last week says world food prices are likely to remain high this year and next.

The biannual Food Outlook by the UN FAO says the next few months will be critical in determining how the major crops will fare this year.

“The situation for agricultural crops and food commodities is tight, with world prices at stubbornly high levels, posing a threat to many low-income food deficit countries,” says FAO markets and trade division director David Hallam.

FAO’s monthly food price index showed global food prices, which earlier this year soared to levels seen during the 2007-08 food crisis, dropped by 1% last month.

Declines in the prices of cereals and sugar were responsible for the slight decrease in the May index, says FAO. This offset increases in meat and dairy prices.

The agency says prospects for cereals in 2011 point to a record harvest of 2315 million tonnes, a 3.5% increase over 2010, but 1% less than 2009.

Global wheat output is expected to be 3.2% up from last year’s reduced crop, mostly reflecting improved yields in Russia.

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Dairy News // june 14, 2011

news

Councils want stock truck law changes ANDREW SWALLOW

DAIRY FARMERS are in the gun with Environment Southland (ES) for failing to stand cows off prior to transport to wintering blocks.

The regional council is so disappointed it has called for an amendment to the Land Transport Act to make effluent leaks onto roads a specific offence.

“It’s all over our roads and they’re absolutely filthy,” ES chairwoman Ali Timms told Dairy News. “Farmers are not standing stock and feeding them hay so they empty out before moving them.”

She says she’s heard of cases where the truck arrives to pick up cows and only then is someone sent to fetch them from the paddock they’re grazing.

The situation this year seems worse than ever despite extensive effort by the National Stock Effluent Working Group and others to illicit a

voluntary improvement, hence ES is calling for regulation, she says. The only available enforcement measure is for regional authorities to prosecute livestock owners under the RMA if an effluent spill from a truck contaminates a waterway.

Timms says the $750 maximum fine that car-

and early June, as herds are moved to wintering blocks or new farms, some trucks without tanks are pressed into use, she notes.

Timms says she hadn’t discussed Southland’s call for legislation with other regions but said she would probably be doing so. She acknowledges the

“It’s all over our roads and they’re absolutely filthy.”

– Ali Timms, Environment Southland. ries is a “slap on the hand with a wet bus ticket”, and fails to address the danger and discomfort effluent on roads causes to other drivers, whether or not it puts a waterway at risk.

With trucks allowed to discharge tanks to land or farm effluent ponds, as well as designated roadside effluent dumps, there is no excuse for overflowing tanks, she says. But such is the volume of stock on the road in Southland in late May

dairy industry is taking a lot of hits in the media but insists ES’s action is not just jumping on the dairy-bashing bandwagon.

“It’s unfortunate but there are always a few – we don’t know whether it’s 10 or 20% -- who let the side down. We’re as sick of rules and regulations as everyone else but unfortunately that’s what it’s come to.”

Waikato Regional Council (WRC) policy and transport group

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manager Vaughan Payne told Dairy News it has already called for “a review of the legislative framework for preventing stock truck effluent discharges, including amending the definition of ‘insecure load’ within the LTA 1998 to include animal waste.”

This has been made through a regional working group of New Zealand Transport Agency, Federated Farmers, Automobile Association, Road Transport Association, Associated Auctioneers, PGG Wrightson, New Zealand Police and WRC. WRC has received 10 stock truck effluent complaints since January, most in May. At least one infringement notice has been served and investigations continue into four incidents.

Payne says the number of organisations and/ or people involved in moving stock makes it a complex issue and responsibility must be shared. Farmers are

Stock truck law changes are being pushed by some regional councils.

responsible up to the time stock are loaded, including ensuring stock are stood off pasture for a minimum of four hours prior to transport.

Livestock carriers should have stock

MOTORCYCLISTS’ LOBBY group

Moto NZ on June 2 launched a campaign encouraging bikers and drivers to report effluent spills by texting DUNG to 244 or filing a report on Moto NZ’s website www. motonz.org.nz “Effluent on our roads isn’t just a smelly annoyance that can potentially ruin your riding gear,” says chairman Gareth Morgan.

“Encountering it on corners can

TRANSPORT MINISTER Steven Joyce

told Dairy News “at this stage” he doesn’t believe a law change is warranted “because other channels can be used to address this issue.”

He says the National Stock Effluent Working Group’s code of practice for minimising stock effluent spills has made “significant progress in certain areas”. For example, most stock trucks now have holding tanks for effluent

and in-transit dump sites have increased.

“Responsibility for preventing spillage of stock effluent rests with various parties, not just the transport operator.”

The Minister says he is not aware of any councils other than Environment Southland calling for Steven Joyce legislative change.

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pose an extreme safety issue, while effluent mist on your visor or an oncoming car’s windscreen endangers everyone.”

Morgan maintains the campaign, dubbed Operation Green Line, isn’t “a case of dobbing in farmers or truck drivers.”

“We’re after better data on the extent and location of these problems so we can work with the livestock industry.”

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effluent holding tanks fitted on their truck and trailers. Meat processors should have an on-site stock truck effluent disposal facilities, as should saleyards.

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Dairy News // june 14, 2011

13

news

Reducing nitrate leaching

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A study shows nitrate leaching in winter-grazed forage crop areas can be reduced by 30% .

T

The use of DCn immediately after grazing reduced nitrate leaching by about 30%, meaning that an extra 40-50 kg N/ ha was available in the soil the following spring, says Stafford.

“That’s N that would otherwise have been leached.”

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NEW RESEARCH into improving quantity and quality of pasture species and helping farmers to break the pasture feed barrier will be unveiled this week by AgResearch.

Breeders there have brought new seeds to farm using a different breeding system – one that captures hybrid vigour and makes it available in seeds. In particular they looked at the use of hybrid vigour to improve breeding progress.

Hybrid vigour is the occurrence of genetically superior plants from mixing favourable complementary genes of both parents. It has the potential both to increase yield and to enhance the plant’s resilience to conditions such as disease or drought.

The breeders, led by Brent Barrett, ran their first trial to measure pasture yield using perennial ryegrass managed under sheep grazing at Aorangi Farm on Manawatu Plains for two years, the results reflecting on-farm conditions.

This work found hybrids improved yield by up to 7% per year above the better parent, and some hybrids showed up to 19% higher yield in certain seasons.

This initial research used six hybrid combinations, and has shown that the concept of using hybrids can deliver value to farmers via improved pasture breeding.

The next steps are to test more combinations to search for a hybrid that is successful across all seasons, and to use DNA markers to fingerprint relatedness patterns and help predict hybrid vigour. Hybrid vigour in forages could deliver on-farm benefits within five years.

more pasture DM. In a two-year field trial on free-draining pumice soils the impact of DCn was even greater.

It showed that for a kale crop grazed in June, N leaching losses were extremely high (130-170 kg N/ha) due to the large winter drainage.

RA TIO N

More vigour in forage

cated DCn applied within a week of grazing a forage brassica crop reduced nitrate leaching by about 20%.

Measurement of pasture production following regrassing of the winter-grazed forage crop showed areas treated with DCn grew about 13%

E E X

the dairy farm area, was responsible for about 40% of the total farm system nitrogen (N) leaching.

“Effectively, the forage crop was acting as a critical source area for N-loss within the larger farm system. Because the amount of N being leached under grazed forage crops is typically quite large, the additional soil N that can be ‘conserved’ with DCn is potentially quite large, providing a good opportunity to turn this into extra feed in the subsequent pasture renewal or cropping phase.”

An initial study indi-

EN

nitrification inhibitor DCn to winter-grazed forage crop areas can reduce nitrate leaching by 30%, an AgResearch study shows. Nitrogen retained in the soil can boost pasture or crop growth.

The three-year research shows potential for nitrate leaching from winter forage crops can be 500% higher than from adjacent dairy pasture.

Ballance science extension manager Aaron Stafford says the work has produced exciting results.

“The winter-grazed forage crop, on 10-15% of

N G

APPLICATIONS OF the

14

Dairy News // june 14, 2011

news

Lifting compliance rates on farms PETER BURKE

A THREE-YEAR project

has been launched to help dairy farmers in Northern Wairarapa increase productivity and reduce the environmental impact of their farming.

DairyLink (DairyNZ, Horizons Regional Council and farmers) seeks to help farmers move on environmental matters and so forestall draconian environmental regulations.

The project will focus on three farms in the district, each holding two field days this year to

Keith Riley

emphasise compliance on farms and improve water quality. The project will promote “good environmental practice” including nutrient management.

Co-organiser Scott Ridsdale, DairyNZ, says

if dairy farmers don’t take responsibility for their farms and their impact on the wider environment they risk heavy regulation which could hit their profits.

Ridsdale says they looked at several options, including focus on a particular catchment, before settling on the three-farm approach.

“We decided to get a small bunch of real farmers and look at where they are today, where they’re trying to head and to see if we can get improved environmental outcomes.”

The challenge will be

A farmer’s perspective GEOFF ARENDS is one of the three

ing difficult for others. But Geoff is DairyLink farmers, on a farm at Hu- positive about the scheme: “One benekanui near Eketahuna, northern Wair- fit will be capturing efficiencies we’re arapa. not aware of. Also, some of Horizons He and his partner Ester have Regional Council’s telling us what we sharemilkers. They run 470 cows on can and can’t do has not been based the 162 ha property in a high rainfall on science. With [DairyLink] profesarea beside the Mangatainoka River, a sionals helping us we’ll get advice or catchment defined as ‘senrecommendations to deal sitive’ by Horizons Regionwith issues.” al Council.

Geoff expects more efThey graze stock offficiencies by reducing water farm for 45 days in winter use at the dairy shed. to maximise feed available “We can’t do anything for the milking season. about stock water but the For Arends it’s quite a amount of water used to Geoff Arends big deal to ‘expose’ their hose the shed can be reoperation to the scrutiny of other duced. We can divert rainwater so farmers. Geoff sees a risk of negative we’re not pumping it into ponds and feedback from other farmers, with onto land.” claims their business is opened to outHe is also looking at fertiliser use side influences and at risk of misuse and how to more efficiently use effluof information that could make farm- ent to grow more grass.

The Mangatainoka River is one of the sensitive catchments targeted by Horizons Regional Council.

to get the district’s farmers involved. About 60 attended the launch.

“Success will look like farmers taking seriously the management of nutrients on their farms, thinking about how they utilise them to generate more.

“It will be about increasing productivity and managing the environment better.”

Chairing the project is Woodville farmer Keith Riley, who says one objective is wrest from regulators the initiative on environment standards

by getting to farmers to set potentially higher, but more workable standards.

“Farmers can’t expect someone else to take on their problems. If we do expect that, the solutions they come up with may be hard to implement.”

Riley wants farmers

to achieve more than just compliance but says the rules and outcomes set by regulators must be sensible and practical DairyLink will show the public that much criticism of farmers is unfair and untrue, Riley says.

Shelters reduce leaching RESEARCH BY the Fertiliser and Lime Research Centre at Massey University shows it’s possible to reduce nitrogen leaching by 63% using cow shelters or stand-off areas.

Director Mike Hedley told farmers at the launch of DairyLink this is a practical, effective way of reducing N leaching. The system, ‘duration control grazing’ (DCG), has operated at Massey’s No4 dairy unit for four years.

“Sensors on cows have shown

they need only four hours between each milking to eat all the grass they need. The rest of the time they stand up, sit down and belch and defecate.

“We realise it’s the urine deposition on the paddock that’s causing the nitrogen leaching so we allow them to graze for four hours.

We then ship them back to a stand-off facility or a cow shelter to drop the rest of that urine which can be collected and put back on the paddocks uniformly with the

effluent system.”

Hedley says the concept would suit the Manawatu and Tararua regions because they have very wet springs when the cows are on the paddocks.

“We also think by housing cows at the appropriate time we can reduce pugging damage to pastures. We estimate DCG will give us an extra 2 tonnes more DM per year and that gain will pay for the cow shelter and yield further profit.”

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16

Dairy News // june 14, 2011

news

AHB welcomes 1080 report THE ANIMAL Health Board (AHB) hopes a report recommending continued use of 1080 to kill predatory pests will reassure the public.

AHB chief executive William McCook says New Zealand relies heavily on aerial pest control to manage TB and protect our access to export markets.

McCook hopes the Parliamentary Commissioner for the Environment’s (PCE) report on 1080 will help public perception of its use.

“Hopefully such a comprehensive report will reassure the New Zealand public that the carefully-regulated use of biodegradable 1080 to [kill] pests such as pos-

sums is not only safe, but necessary.”

The AHB uses aerial 1080 to kill possums and other carriers of bovine tuberculosis (TB) on around 400,000ha of private and public land, where ground-based pest control is impractical.

This represents about 20% of the AHB’s work. Wild animals,

particularly possums, are responsible for about 70% of new herd infections in at-risk areas.

In her report the PCE, Jan Wright, recommends against a moratorium on 1080, citing the damage that would be done to native forests and animals if such a ban went ahead.

“Possums, rats and

stoats are chewing up our forests to the point that we are only a generation away from seeing regional extinctions of kiwis and other native species where no pest [killing] is carried out.

“There are other pest [killing] methods more suitable than 1080 in certain circumstances but on much of our conservation land there is nothing else that will effectively kill possums, rats and stoats.”

Her report has been tabled in Parliament.

The use of 1080 to control TB has received a boost.

Farmers back PCE

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FARMERS AND conservationists have ly aligned because we have a common joined hands to back the Parliamentary goal and a common tool. It’s about beCommissioner for the Environment’s ing good neighbours.

(PCE) report on the use of 1080.

“What is good for the conservation Forest & Bird and Federated Farmers estate in terms of pest control benefits back the continued use of 1080 to kill farmers, and the work of farmers in conpests. trolling pests on farms benefits the DOC Forest & Bird conservation advocate Nicola Vallance says PCE Jan Wright’s well-researched report showed 1080 was a lifeline for New Zealand’s endangered native birds and forests.

“New Zealanders love our native forests and wonderful birds, and we don’t want stoats, rats and possums to destroy our forest life.

“Effective pest control such as 1080 will stop introduced pests driving many species – including our kiwi – to extinction,” saysVallance.

Federated Farmers is not only backing the use of 1080 for conservation purposes, but the beneficial role 1080 plays in controlling the spread of bovine tuberculosis (Tb) carried by pests such as possums and muste- Opponents argue 1080 kills birds and wildlife. lids, like stoats.

“While the focus of the PCE report is about the conservation estate, estate in return.” farmers, through their rates and the Federated Farmers says the PCE’s reAnimal Health Board, fund pest control port is “an example of plain English that on the forest margins,” says Federated spells out the facts clearly”.

Farmers pest spokesperson Donald Au “The PCE admits that she entered brey. her enquiry dubious about 1080 but the “It has to be remembered that farmers more she examined it, the more she rehave voluntarily protected over 111,000 alised that it was head and shoulders hectares of land under QEII National above any alternative,” says Aubrey.

Trust covenants,” he says.

“The report is a slam dunk for com“Conservation and farming are close- mon-sense.”

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Dairy News // june 14, 2011

19

world

Record prices for heifers AN AUSTRALIASIAN

record price of $A49,000 was set for a 10-monthold Holstein at the Blue Ribbon II sale in Victoria, last month.

Buyers from throughout Australia and New Zealand converged at Zeerust, north of Shepparton, where Dean and Dianna Malcolm offered 100 head in a sale, which averaged $A6408 and grossed $A627,950.

Buyers from the US and New Zealand were among the new owners.

Lot 12, Bluechip Jasper Rae-RC (Imp-ET US) made the record price for an unjoined heifer. The July 2010born Jasper daughter is a red carrier, backed by seven generations EX, including her dam Scientific Sweetie Rae ET EX-92-2E-USA. Rae is a member of the world famous Roxy family.

She was offered by Bluechip and WWS Australia and she was bought by local breeder Keith Petersen, Dundee Holsteins, Girgarre. Petersen says he has visited Bluechip several times since Rae was born, watched her develop and was excited to be taking her home to his operation.

The second top price was bought by a US and New Zealand-led syndicate. Bluechip Goldwyn Paradise (ET), a 13-month-old granddaughter of IDW

Grand Champion Dryfield Dundee Paradise (imp ET), was sold for $A27,000.

Cohuna breeder Corra Lea Holsteins, owned

by Leigh Prout, jumped early buying the first two lots.

Bluechip Finalcut Queen VG89 (max), a noted show cow with eight generations EX and VG cost him $A20,000.

His second buy was a cow he bred, Corra Lea QS Fame July. She was also the highest classified Holstein ever to be sold at auction in Australia at EX94. She made $A16,000.

The Woodside Park stud of Bruce McIntosh and family, at Berry, NSW, bought four lots including Bluechip Dundee Betsyann 2-ET (a show heifer from a VG87 Shottle and EX92 grand dam that had won best udder of class at International Dairy Week) for $17,000.

Vendor Dean Malcolm says the atmosphere was exciting and to sell to the US, New Zealand and every dairy state in Australia has been gratifying.

He is considering making the sale an annual event, with slightly lesser numbers and multi-vendor inclusion.

“It wouldn’t be as many lots if we sold annually and we would invite our partners or people that have bought from us before to be involved if

they’d like to be.

“We also like to keep trying different things to keep ahead of the game, so we’d run it slightly differently next time.

We may even consider including an additional breed.

We haven’t formalised

our thinking yet, but we’re definitely turning concepts over.”

Top price of $A49,000 was paid for 10-month-old Bluechip Jasper Rae-RC (Imp-ET US) Jasper Rae is a red carrier, backed by seven generations EX, including her dam Scientific Sweetie Rae ET EX-922E-USA . Photo: Pip Robinson.

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However, Dairy UK says today a recycling revolution in the supply of recycled plastic to the dairy industry would be essential if the industry is to meet the targets it has set itself for the future.

In 2010, more than 70% of milk bottles purchased in the UK were recovered for recycling and more than 12,000 tonnes of plastic was recycled into fresh bottles.

This helped to reduce emissions from packaging in the sector by 27,000 tonnes in 2010 alone.

The next target the industry has set itself is to achieve a minimum 30% recycled plastic in milk bottles.

Dairy UK director general Jim Begg says as the industry’s environmental performance continues to improve, recycled plastic becomes an ever scarcer resource.

11/15/10 10:01:06 AM

20

Dairy News // june 14, 2011

world

‘Legislation won’t stop retailer discounting’ THE HEAD of the UK’s largest dairy lobby group says political intervention is not going to solve supermarket discounting.

Jim Begg, the directorgeneral of Dairy UK – which represents farmers, dairy co-operatives, dairy manufacturers, bottle milk buyers and milkmen – spoke to farmers in Queensland and NSW last month.

He says that UK farmers are also facing an unsustainable cost price squeeze from the major supermarkets.

Begg says political intervention is not going to solve the problem at least in the short term.

“Legislative routes are more time consuming, there is not even unanimous support that they are the way forward,” Begg told ABC Radio.

“In fact, in the UK and other parts of the EU, the industry has a preference for free market principles and is opposed to regulation.”

Begg says the industry needs to get consumers on board and buying the branded products and modified milks. He says in the UK processors, retailers and farmers are working jointly together and the pricing arrangements have been generally accepted by dairy farmers.

“They are never happy about the price, of course, but they generally accept the principle and they way it actually works in practice.”

Queensland Dairyfarmers Organisation president Brian Tessmann says

there are real messages for consumers that can be drawn from the shopping experience in Europe.

“If you’re buying milk in parts of Europe, you need a search party or the CIA to find fresh milk,” Tessmann says.

“The average consumer is stranded if they’re looking for fresh milk for their cornflakes in countries like Spain and Belgium.”

He says in parts of the UK, branded milk is almost as rare, and has been forced from prominence in supermarket fridges by retail giants such as Tesco.

“Coles is using similar tactics here in Australia,” Tessmann says.

“Australian consumers need to be aware that the current price war here is having the same genesis as the current problems confronting European dairy producers.”

According to a Dairy UK White Paper, because of the sheer volume of milk purchased by Tesco, the farm gate price set by this retailer is seen by many as setting the benchmark for the industry.

With Australia having even less supermarket competition than in the UK, Tessmann says there is cause for concern for both farmers and shoppers.

“We are already seeing the impact of the price-war at the farm gate, right now, as processor milk brands sales have been attacked by unsustainably discounted supermarket store brands.

“The dairy farmers that are here today have the evidence of the impact on their current milk cheques, which are lower in value.

Australian farmers want consumers to buy branded milk.

Have you thought about the quality of your replacements?

STAGE ONE

in brief

© ICON 7050 FIB

Chocolate milk is good

NEW RESEARCH builds on a growing body of science showing the benefits of low-fat chocolate milk following exercise.

Recently presenters at the American College of Sports Medicine (ACSM) 58th annual meeting shared results from research indicating drinking chocolate milk after a workout can boost improvements in aerobic fitness and body composition.

These presentations follow a study published Journal of Strength and Conditioning Research3 (may 2011) focusing on chocolate milk’s beneficial effect on cycling performance and signals for muscle recovery in endurance athletes.

“For shoppers, it could mean reduced choice in the long run and rising prices for milk, which is exactly what has happened in the UK.”

STAGE TWO

Dairy News // june 14, 2011

21

world

Oz milk price battle ‘forcing farmers out’ SAM THOMSON

NATURAL DISASTERS + lower prices = a struggling dairy industry.

Life has been tough for Queensland dairy farmers

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this year, and with the milk price-war, things just got tougher.

At this month’s Rural Press Club lunch, Brian Tessmann, president of the Queensland Dairyfarmers’ Organisation (QDO), discussed the impacts and issues of the price-war.

“Wesfarmers-owned Coles supermarket launched a cut-throat discounting campaign on Australia Day 2011, selling Coles store brand milk for $A1/L, the lowest price since 1992,” says Tessman.

“So when we already have a shortage of milk, a supermarket decides to start a ‘milk price-war,’ discounting milk to an unsustainable price.”

Applying some basic economics, Tessmann says in Queensland the retail market is going in the opposite direction of the fresh milk supply-demand equation, not reflecting the true value and cost of fresh milk.

Traditionally, when there is a shortage in supply, the price increases. Furthermore, staple goods are typically inelastic: regardless of prices changes, the quantity demanded stays constant.

“Although the price difference between supermarket-brand and branded milk has increased from $A0.18 to $A0.87, the real affect is the movement of customers and customer purchases from one brand category to another,” says Tessmann. “Not increased sales overall.”

Nevertheless, other states do not have the same problem as Queensland.

After 2000 milk production kept falling, causing major loss of farmers and the divestment of milk processing capacity, Tessmann says.

“Products for the export or food service sectors could no longer be manufactured.”

If nothing changes, what will happen? Tessmann says milk prices will need to increase anyway.

“More dairy farmers will leave the industry. This will result in regional milk shortages getting worse, causing milk to be transported longer distances, at higher cost. And investment in sustainable farm systems will decline.”

He says the industry needs a sustainable return to keep producing, processing and supplying fresh milk.

“In the meantime, to help support Queensland dairy farmers, you all can make a difference by buying branded milk – Dairy Farmers, Pauls or Norco for example.”

Tessmann says this idea was supported by Woolworths chief executive Michael Luscombe.

UK farmers curb new bug fears UK DAIRY farmers have been quick to assure consumers about the safety of pasteurised milk, following an article in The Lancet about a new, rare strain of MRSA discovered in dairy cows.

The author, Mark Holmes, of Cambridge University, confirms pasteurisation kills the bug. But MRSA is a worry to people working with cows on dairy farms.

MRSA, a bacteria commonly found living on human skin, has been isolated from dairy cows, pigs and chickens.

NFU chief dairy adviser Rob Newbery says consumers should be aware pasteurised milk is safe.

“They should continue to buy British milk with confidence as it is produced by trained dairy farmers and stockmen who take seriously their role as food producers.

“Our farmers maintain excellent levels of hygiene through farm assurance standards, principally the Red Tractor, which sets rules for food production from farm through to pack.

22

Dairy News // june 14, 2011

opinion Ruminating

Editorial

Funding biosecurity

Watch what you wear

milking it...

Breast milk – from cows’ udders

CHINESE SCIENTISTS have genetically modified dairy cows to produce human breast milk and hope to sell it in supermarkets within three years.

The milk produced by the transgenic cows is identical to the human variety, with the same immune-boosting and antibacterial qualities as breast milk, scientists at China’s Agricultural University Beijing say.

The transgenic herd of 300 was bred by inserting human genes into cloned cow embryos which were then implanted into surrogate cows. The technology used was similar to that used to produce Dolly the sheep.

The milk is still undergoing safety tests, but with government permission it will be sold to consumers as a more nutritious dairy drink than cow’s milk.

Holy cow!

WHAT’S THE secret of those Israeli cows? Data released by the country’s Central Bureau of Statistics show Israeli cows produce more milk than cows in other countries, Local cows averaged 10,208kg of dairy products and 10,000 L of milk in 2009, the data showed, beating cows in the US (9331kg/cow), Japan (7497), the European Union (6139) and Australia (5601).

New Zealand cows averaged 3600 L of milk and 318/kgMS per year.

DELEGATES TO the South Island Dairy Event (SIDE) 2011 have to watch what they wear. Organisers say delegates from commercial organisations not sponsors of SIDE 2011 may not wear branded clothing at the event.

“Corporate delegates wearing branded clothing will be asked to leave the venue and no refund will be offered,” it warns.

Speak up!

YOUR OLD mate was pleased to see farming groups deservedly slamming Labour over its dubious allegations about the amount of tax paid by dairy farmers.

Disappointing, though, was Fonterra’s kick for touch when asked to comment on Phil Goff’s equally ridiculous claim that implementing the Emissions Trading Scheme (ETS) on agriculture in 2013, as proposed by Labour, would not harm dairy prices.

Goff claimed that Fonterra boss Andrew Ferrier had told him it was “nonsense” to suggest the ETS would cause milk prices to rise.

Ferrier declined to comment on Goff’s claim for fear of getting involved in politics. But he did say agriculture should not join the ETS without other countries doing the same.

Prime Minister John Key says agriculture will not be included in the scheme unless other countries also include it and that it will lead to higher milk and dairy prices.

While ‘Milking It’ can understand Fonterra’s reluctance not to get caught up in politics, especially during election year, there are clearly times when it has a responsibility to speak the truth when it counts.

PO Box 3855, Shortland St, Auckland 1140 Rural News Group PMP Print Editorial: sudeshk@ruralnews.co.nz davef@ruralnews.co.nz www.ruralnews.co.nz subsrndn@ruralnews.co.nz

ABC audited circulation 27,234 as at 30.12.2010.

Write and Win! WINNING a new pair of Skellerup Red Band boots has just become easy. The best Letter to the Editor published in Dairy News each issue will receive a pair of boots. So, put your pen to paper and let your views and comments be known through the most widely read farming publication. And you may end up bagging the Skellerup Red Band boots.

Send to: Letter to the Editor PO Box 3855, Auckland 1140.

Email: dairynews@ruralnews.co.nz

Head Office: Top Floor, 29 Northcroft St, Takapuna, Auckland 0622 Phone 09-307 0399. Fax 09-307 0122 Postal Address: Published by: Printed by: Contacts: Advertising material: Rural News on-line: Subscriptions:

THE RECENT E. coli outbreak in Germany and parts of Europe won’t directly affect most New Zealanders.

But spare a thought for Spain’s cucumber growers, who were wrongly identified as the source of the new bacteria strain when the outbreak surfaced late last month.

Farmers across the continent have suffered hundreds of millions of Euros of losses, as fresh vegetables have been thrown away and sales as well as prices have slumped.

The crisis is unfolding many miles away from our dairy farms, but it brings home a clear message – a severe biosecurity incursion will have dire consequences on the farming community and the national economy.

So it doesn’t make sense that the agriculture industry and Government are still squabbling over funding burden for biosecurity.

Everyone agrees there can be no compromise on protection.

However, not everyone agrees with the Government’s Biosecurity Reform Legislation currently before Parliament – trying to pass the funding burden from government to industry.

Is biosecurity spending a public or private good activity?

A large number of weeds, pests and diseases threaten the viability of dairy farming in New Zealand.

The bulk of these threats come from imports. Therefore, it seems unfair to force exporters into sharing the cost of fighting future biosecurity incursions with Government.

Given the risk from imports and imports alone, that’s where the focus for meeting the cost of any incursion response needs to come from.

The recent KPMG Agribusiness Agenda 2011 ranks a robust biosecurity system as the number one priority among New Zealand’s agribusiness leaders. It warns the funding burden must be correctly allocated between the taxpayers and industry participants.

If we get the balance wrong and a risk is consequently ignored, the impact on the industry could be potentially catastrophic.

New Zealand cannot afford not to have world-class protection and we must maintain our no tolerance position regardless of how the system is paid for.

ISSN 1175-463X

Publisher: Managing Editor: Editor: Reporters:

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Dairy News is published by Rural News Group Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Rural News Group Limited.

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Dairy News // june 14, 2011

23

opinion

Budget while the fire crackles COLIN MARSHALL

BUDGETING GETS a lot of press; here are my thoughts to get you motivated to revise, compare and rewrite.

A budget is like a road map to get you to a predetermined place at a certain time. An old adage applies: you will never get where you want to be unless you know where you are going. But this does not mean you cannot change course along the way as circumstances change.

We normally do our first budget each April for presentation to the annual meeting. In April you do not have the advance rate for the next season nor the final payout for the current season. I don’t see this as a reason to delay making your first budget as we usually have a pretty good feel for where these numbers will be. By making your first budget early you can see the impact increased costs are going to make on the overdraft requirements. This will create discussion with your business partners on areas to cut spending and where to spend on new plant and development.

This first budget should be modified now, in the winter, when you have more time to plan and strategise.

At this time the new advance rate and season forecast payout will be known. You will have more accuracy on stock numbers, grazing fees and

“By making your first budget early you can see the impact increased costs are going to make on the overdraft requirements.” costs in general so update the budget to get it as accurate as possible.

Save this budget and use it as the base for comparisons during the season. It is a good idea to save the first budget as well so you can compare your first forecast with what actually happens. You will be surprised at the accuracy of the first budget and how valuable it is to be able to make decisions early.

In collecting the data for your bud-

get you can use the previous year for base data, taking out all one-off expenses and income items such as major upgrades or one-off stock sales.

You should have accuracy on grazing costs and numbers, interest costs if you have fixed rates, and feed costs if you have forward contracts to buy. For items such as fuel and electricity you can add a set percentage. Look at your other expenses such consumables, animal health, etc to see if you can make savings by changing suppliers or buying smarter in bulk or groups.

Remember that your budget is your best estimate at a certain time; don’t get too concerned about having everything perfect.

Change is constant so alterations can and will need to be made as the season progresses.

In our budgets we always plan our profits. The old adage ‘pay yourself first’ is a good one. Why are you in business if not to make a profit? Plan your personal drawings or shareholder payments at the beginning of the season. If things turn out worse than expected you can always cut back.

By paying out on a monthly basis to

your partners, spouse or shareholders they will have more confidence in your business and your planning.

If things change for the worse they will understand the need for reductions. It doesn’t mean they will like it but at least they will understand.

As the season progresses revise your budget as you go. The computer program we use has reports that give month-by-month comparisons and year-to-date comparisons of actuals and budget.

There is a function to compare with last year or any year or any budget.

Every month, on the Colin Marshall first of the month (or soon of the season. With updating your after) I download the bank statement budget monthly you constantly know and reconcile all the transactions your finance and overdraft requirewith the cash book. This automatical- ments. That makes communicating ly updates the cash flow. From that I with your bank easier. can print or email a revised cash flow Budgeting may not be a lot of fun to all shareholders with comparisons but it need not be difficult. It can be to budget. By doing this all share- rewarding and reduce stress in dealholders know exactly what is going ing with the bank manager and stakeon and the state of the bank overdraft holders. Don’t delay. Get your budat all times. gets up to date this winter while you Your budgets are important for have more time and you’ll find next your bank managers and you should season much less stressful. give them a copy at the beginning marshall100@xtra.co.nz

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26

Dairy News // june 14, 2011

agribusiness

Dewdney explains LIC’s support for Agria bid LIC has backed Agria’s successful bid for partial takeover of PGG Wrightson.

The farmer co-op’s chief executive Mark Dewdney explains why:

Mark Dewdney

Successful farming requires some key partnerships.

Bank manager. Farm Advisor. Builder?

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Why did LIC support the Agria bid?

LIC’s core business is helping dairy farmers improve the productivity and profitability of their farms. We do this through animal genetics, farm software, milk testing, farm automation, disease testing, sale of ear-tags and RFID enabled devices, farm consultancy.

This is all supported by approximately $20m in annual investments in science, new technology development, new product development and service capability improvements.

PGW’s Agritech business is the clear market leader in the New Zealand grass, forage and seed market.

We believe there is a strong link between our core business and grass and crop seeds – it’s the next big opportunity for improved management information and productivity improvement on New Zealand farms (behind improving the cow), and we want to ensure that New Zealand dairy farmers have some influence over the future direction of the PGW Agritech business.

We also have an interest in growing our export business in China, and believe that Agria and New Hope represent very good partners for that expansion. Supporting the Agria bid creates an opportunity for us to achieve all the goals outlined above.

What’s your answer to the question from some shareholders that if LIC had $10m ‘spare’ it should have been returned to

them?

Our responsibility to shareholders is to invest their funds to provide a return on-farm and through annual dividends, and we’re confident that over the medium to long term this will deliver on both fronts, proving to be a good investment for current and future generations of shareholders.

Over the past five years we’ve paid a total of $42.5 million in dividends to shareholders, an investment in R&D of $19.3 million and discounts which vary from $5.5 million in 2009 to $8.3 million in 2010.

Does the fact that LIC has $10m support a view that it’s charging too much for its products?

No. LIC is a modern cooperative; we price our products on a value basis, taking into account our costs, our need to generate profits to re-invest, and the competitive markets we operate in. In every area of our business we have strong competition, increasingly from foreign owned companies.

Our last price increase for our genetics products was made on 1 June 2009 and we have no intention of increasing the price of genetics in 2011.

LIC pays a relatively high rate of dividend to its shareholders, couldn’t you reduce the price of your products and pay less dividends to shareholders?

Every business needs to be profitable to survive, and to be able to

keep improving its product and service offering.

LIC is a capital-intensive business (land, bulls, people, IT systems, laboratories etc). Our annual profitability represents a return on capital of around 6 – 9%, which is not high by any standard. Shareholders who invest their capital in LIC deserve a fair return, and this is why we pay annual dividends.

What are the terms of the loan to Agria?

The loan is for eighteen months, on commercial rates, and adequately secured.

You’ve said LIC’s loan to Agria gives you a foothold should PGW develop a standalone Agritech business – do you hope that this will happen within the term of the loan?

We hope that PGW will separate out the Agritech (grass seeds, crop seeds, animal health, feed supplements) business and, if they do, LIC would then consider investing directly into this, if given the opportunity. I need to stress though this is a decision for the PGW Board and shareholders, and we cannot influence this.

If LIC did become involved in an Agritech initiative with PGW, would it start to sell grain or grass-seed?

No, we would not start selling grain or grass seed. PGW has very well developed sales channels, and LIC’s Customer Relationship Managers need to stay focused on our own extensive range of products.

Dairy News // june 14, 2011

27

agribusiness

Breakfast club breaks 2 million mark FONTERRA AND Sanitarium’s KickStart Breakfast

scheme has passed two million servings.

This coincided with World Milk Day (June 1), with All Black Richard Kahui and children’s television host Erin Simpson tucking into Weet-bix and Anchor Mega-Milk with kids at Panama Road school, Auckland.

Fonterra spokesman Kelvin Wickham says the celebration was special because it fell on World Milk Day. The twice-a-week breakfast clubs operate on a sus-

Care, Science Roadshow, and Supporting Communities.

In the case of Kickstart, the aim is to develop healthy long-term eating attitudes and behaviours, as well as helping children’s immediate concentration and learning ability.

Richard Kahui and Dallas Dewes celebrate Kickstart’s two millionth breakfast.

Kickstart regional stats 57 schools and 1614 children 81 schools and 3729 children 60 schools and 2302 children 23 schools and 700 children 23 schools and 448 children 46 schools and 1865 children 25 schools and 1079 children 35 schools and 1157 children 33 schools and 1378 children 5 schools and 545 children 2 schools and 96 children 7 schools and 290 children 21 schools and 582 children 7 schools and 154 children 8 schools and 210 children

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tainable community partnership model.

“With Fonterra and Sanitarium providing the milk and cereal, and local teachers, parents and the community providing the supervision and coaching, the model encourages the kids into healthy eating... and families to provide a daily breakfast.”

The clubs were set up in 2008. Now weekly 30,000 breakfasts are served to 16,000 children in 433 decile one to four schools.

The two firms have worked with New Zealand Red Cross, which until recently offered a Breakfast in Schools scheme exclusively to decile 1 schools. That has ended and the 61 schools affected have been invited to join KickStart Breakfast.

Sanitarium general manager Pierre van Heerden says schools report children are happier, have more energy and are able to concentrate.

“It’s a natural fit with our focus in the community.

We know breakfast is critical for children, helping to improve their behaviour, concentration, memory and learning ability at school.”

When Dairy News asked Fonterra the cost of Kickstart and why that investment is worthwhile, the cooperative stopped short of spelling out the apparent industry image and long-term marketing objectives of the programme, or giving a dollar figure.

Instead, it says Kickstart uses 165,000 two-litre bottles of Anchor Mega Milk annually and is the cooperative’s flagship social responsibility initiative. Those initiatives “give back” to the communities in which the cooperative operates, the others being Catchment

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Dairy News // june 14, 2011

management Sweet-tooth cows love fodder beet PETER BURKE

A SUGARY diet for cows is all good, say John Bartlett and his brother George, working a 200ha run-off block at Waituna West, north of Feilding.

Each owns a dairy farm in the district, and they share the run-off block John read a few years ago about feeding sugar beet as a winter supplement for cows. After some inquiries he worked out it might be a good proposition for him, so he planted 12ha of beet.

The benefits are huge, he says.

He’s getting 35 tonnes/ha, whereas with kale it’s a mere 12t.

Critical to growing a good crop of sugar beet is the ground preparation

and keeping the weeds down, John says. The first six to eight weeks is the important time.

“It’s not a crop where you throw the seeds in the paddock and forget it. It’s an expensive crop to grow because of the sprays required and you need to do it properly to get the benefits.”

Cost to grow is 7c/kgDM and if you get a poor crop through poor management you’ve paid out a lot of money for not a lot of reward, he says.

“If it’s done right, it’s a great way of yielding a lot of DM/ha, more than you’d get with conventional means.”

Because of the sprays, sugar beet has to be grown by itself, but once it’s established, John sows some kale around the headlands of the paddocks. The 500 cows spend seven-

Cows enjoying sugar beet on the Bartlett farm.

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Sweet success... John Bartlett with a typical sugar beet.

eight weeks on the run-off block high on the hills above the Rangitikei region. Sugar beet grows well at altitude and he’s heard reports of it growing on farms along the Napier Taupo Road.

“The key to feeding sugar beet off the paddock as we do is having free draining soils. Cows stand in the paddock for so long and if it wasn’t free draining it would just turn into a bog.”

While sugar beet has many advantages, it does have some downsides. The fact it’s mainly sugar and lacks protein is an obvious problem. But this is simply dealt with by feeding out other supplements such as straw, hay, baleage and even kale with the sugar beet. The cows are not put straight onto the sugar beet; they are eased on to it over a week.

“We start them off on sugar beet and grass then move to sugar beet, grass and hay or straw. Then we take out the grass and move them to sugar beet and kale. We have heard of people losing cows if they put them straight from grass to beet.”

John says the cows love the sugar beet and from a farmer’s perspective it’s an easy crop to feed out. Because it’s shorter than

some of the other fodder crops, it’s easy to set up electric fences around it and manage the cows.

“For cow condition it depends what you feed with sugar beet. If you just feed it solely with straw you would only hold the condition, you won’t increase their weight. Because

there’s no protein in the sugar beet and animals need protein to put on weight, the type of supplement will determine whether they put on weight or not.”

John says he’ll plant at least another 12ha next year. He’s also planning to grow some lucerne for hay to go with the beets.

Sweet facts on beet • Sugar beet can be traced bac k some 4000 years to Egypt.

• Over the centuries it’s been used mainly as a fodder crop but since the early 19th century the plant has been more commonly associated with sug ar production. It came to prominence during the Nap oleonic wars when Britain blockaded French imports of sugar from the Caribbean.

• The French developed a sys tem of extracting sugar from the beets and so began the mo dern sugar beet industry.

In the 1920s Britain started to grow large amount of sugar beet for commercial pro duction.

• The crop is now grown extens ively in Europe, the UK and the US. Trials are underway in the UK to produce fuel in the form of biobutanol from sug ar beet.

• Not a lot of farmers grow sug ar beet in New Zealand as a fodder crop, but in Europe it is har vested, stored and fed to animals in winter.

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Dairy News // june 14, 2011

29

management

Heifer management the key to success FOR MARK Sing, getting this season’s heifers through

the shed five times before milking begins is vital.

The Waikato farmer has a consistent regime to manage heifers to achieve an average BCS 5.5 for calving and a routine to settle them for milking before the season begins.

“We bring them all back from the grazier on May 1,” he says. “With the shortage of feed in Waikato in the past few years we have been able to add extra supplementary feed and have more control.

“It takes the pressure off the grazier’s block and if they’re not in good enough condition, we have more time to get them to BCS 5.5 rather than returning on June 1 in lighter condition and with limited time to put on weight.” It also gives the team time to prep the heifers in the milking shed.

The 1060 cow farm is run as two herds: 840 cows are milked through a 50-bail rotary on the main block and a smaller 24-a-side herringbone shed caters for the remaining 220. The farms have 220 heifers to train this year. Getting them through the shed five times ensures heifers are more settled to be freeze branded, teat sealed and ear tagged.

After returning to the farm and settling in for a week, the heifers will start being trained to go through the shed.

“It is a slow process pushing them onto the rotary, and it takes a few hours,” says Sing. “After the third time they are starting to get the picture and flow better.

The good thing is, staff are not as busy in the dry period and we have more time to manage them in a less stressful environment.”

The heifers are due to calve from July 6, a week earlier than the main herd. Any heifers that lose a lot of condition after calving go into a third herd on once-aday, taking the pressure off the animals to improve their condition pre-mating.

“Previously we’ve struggled to keep the condition on our heifers post-calving and the condition loss on some animals has been large.

“So we’re identifying heifers falling behind to reduce the number that don’t cycle due to condition.”

Teat Seal has reduced the incidences of heifer mas-

titis at calving and the extra effort to train the heifers pre-calving pays off, with a smoother transition to a milking cow.

To manage mastitis in early lactation, Sing has a staff member at cups-off who is teat spraying and checking cows for mastitis, body condition and lameness issues.

ONE THING YOU CAN AGREE ON

Clover root weevil fight bio-control agent in 2006 has suppressed the pest’s impacts. But a watch is needed for new infestations and to ensure the agent quickly reaches areas that need it, says AgResearch.

AgResearch senior scientist Philippa Gerard says when CRW was first found in 1996 in Waikato little was known about its impact on pasture or how to manage it.

Management options remained elusive and for 10 years CRW spread through the entire North Island, she says.

AgResearch scientists in 2006, supported by DairyNZ, Beef + Lamb NZ and AGMARDT, released a potential biocontrol agent – a tiny parasitic wasp from Ireland. Trials began in Waikato, Hawke’s Bay and Manawatu, and within 18 months the wasp was seen to be doing better than expected.

Though the biocontrol agent cannot eliminate CRW, it can strongly suppress it within 12-24 months of arriving in a new area, taking pressure off pastures and farmers’ pockets.

AgResearch speedily gave out the wasps in the North Island via industry networks and at field days to farmers who then release them on their properties.

Hundreds of these mini-releases, and mass releases at key sites, have spread the wasp through the North Island, says Gerard.

BETTLE7066H_DN

CONFRONTING CLOVER root weevil (CRW) with a

Managing heifers to achieve BCS 5.5 is key, says farmer Mark Sing.

30

Dairy News // june 14, 2011

management

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moves, and a calibration equation is then used to convert height into pasture mass.

The calibrations used to make this conversion have until recently been based on restricted field data. But an AgResearch project led by Robyn Dynes has resulted in customised calibrations of higher accuracy.

The AgResearch team selected paddocks in a range of regions, and each month measured the grass height then cut, dried and weighed the grass to develop the calibrations for converting grass height into pasture mass. Repeating these for 12 months enabled calculation for each region on a daily basis.

The calculations were done for dairy farms, and for beef and sheep farms in a reduced number of regions, Dynes says.

“The calibrations should give farmers greater confidence in their ability to measure pasture mass, and now the calculations have been included in the C-Dax pasture meter package it is even easier for farmers to use them.”

Dynes’ team also sought to improve pasture quality measurements. Working with Ian Yule, Massey University, the researchers are working on new ways to measure pasture quality parameters in real time, so farmers can respond to diurnal and seasonal changes in nutrients such as protein and carbohydrates.

Measurement of pasture quality parameters such as protein, carbohydrate, minerals and fibre has until now required cutting a sample of grass and sending it to a laboratory for analysis, says Dynes.

“Farmers had to wait 3 days to 3 weeks for results, by which time pasture conditions had changed and the measurements were no longer relevant.”

Real-time measurements would enable farmers to react to, and take advantage of, short-term changes in nutrient levels.

“For example, when protein in pasture grass is too high relative to its carbohydrate content, leading to sub-optimal animal production, farmers could feed animals supplemental carbohydrates in the shed, thereby improving their productivity.”

In addition, such feeding could also improve environmental performance.

When animals ingest too much protein, they excrete the excess in their urine, which is a primary source of nitrogen leaching into groundwater and waterways.

High carbohydrate supplementary feed can reduce excreted nitrogen.

A second example of how pasture quality measurements can be used to drive increased production and environmental performance is by using real-time measurements of nitrogen content in pasture to determine whether fertilisers are needed, and to develop a finely tuned, more efficient system for applying fertilisers, rather than just using a simple calendar schedule. Such a system could improve pasture production, reduce fertiliser costs and limit nitrogen losses to the environment.

The Pastoral 21 funded research will feature at AgResearch’s exhibit at National Fieldays.

FONTERRA CHAIRMAN Henry van der Heyden has received an honorary fellowship from Waikato Institute of Technology (Wintec) for services to agriculture in Waikato and beyond.

Wintec council chair Gordon Chesterman says van der Heyden is a household name in New Zealand, “and we’re proud he’s now part of the Wintec family.”

“It’s fitting to add Sir Henry to our elite list of fellowship recipients, including the likes of Sir Edmund Hillary, Sir William Gallagher and Dame Te Atarangikaahu.”

Dairy News // june 14, 2011

31

management

Plan to foil black beetle A BLACK beetle wreaking havoc in perennial pastures in the North Island may soon find its match.

A three-year project, ‘Beating black beetle’, will develop pest-resistant dairy pastures in Waikato and Bay of Plenty.

This research will be shown on the AgResearch site at National Fieldays.

The Waikato Black Beetle Action Group, with AgResearch, has won a 3-year MAF Sustainable Farming Fund grant of $500,000 for the project. A similar cash payment and in-kind contributions will come from DairyNZ, seed companies, industry and farmers.

A recent survey of 700 Waikato and Bay of Plenty dairy farmers showed pasture failure was the single biggest problem on farms, and black beetle was widely identified as a major culprit.

Black beetle is hard on pasture in the Waikato and throughout northern North Island.

Farmers there are experiencing widespread failure of perennial pastures,

many within 12-24 months of establishment.

AgResearch’s Warren King says despite the economic and environmental impacts of black beetle outbreaks, many farmers and rural professionals do not understand the extent of the problem or know how to combat it.

This project will help inform Waikato farmers and the wider industry of damage by black beetles and how to minimise pasture losses. It will include on-farm trials to discover the best combination of establishment/endophyte/ cultivars to limit black beetle damage.

Farms will be monitored for pasture production and composition, persistence through time, pest insect populations and endophyte infection rate, King says.

“The Waikato Black Beetle Action Group also hopes to link with companies that may have technologies to deal with black beetle. The team will work on a warning system to initiate farmer decisions.

Pasture cover rises as winter arrives PETER BURKE

HOW TO approach a winter of adverse weather is exercising the minds of many dairy farmers, says DairyNZ team leader for the lower North Island, Scott Ridsdale.

But pastures are better, he says. Overall pasture covers are very good.

“The pasture covers are high for this time of the year and going into the winter that’s positive.”

Following the hard spring last year, cows are probably in less-than-ideal condition, and many herds won’t get near the target BCS 5.0 at calving this year, Ridsdale says.

“Pregnancy rates are generally poor as a result of the mating period, when extreme wet was followed by a very dry period. In-calf rates have been poor from last spring and an average empty

rate of 14–15% is not going to be too far from the average.”

Less supplement than usual was made last spring, he says. But this will be compensated by present pasture covers. Some farmers are buying in PKE to help get condition on their cows.

Farmers who gambled by buying extra supplementary feed early in the season to increase production have probably done well, given the good payout, Ridsdale says. Those who didn’t would have suffered as production tapered off.

A hot topic at regional discussion groups has been the media spotlight on dairying, with claims farmers are earning big money and paying little tax. This has disappointed many farmers.

“On the one hand they hear of their value to the country in contributing to the GDP, then on the other hand they hear negative news items on how little tax they pay.”

32

Dairy News // june 14, 2011

animal health Ready for calving FOR ENDA Hawe, getting

bolic problems associated with calving probably come from crops, so the transitioning back on to grass, which is their natural feed source, minimises all that risk.”

For Hawe, a key component to calving is staff. This year he’ll have four of his five staff from last year, but he’ll still

ready for calving means having cows, people and farm systems all ready to go.

A lower order sharemilker, Hawe runs 1100 cows on 280ha at Westerfield, near Ashburton in mid-Canterbury. The Irish immigrant and his Christchurch-born wife Sarah have two children, Niamh, two-and-a-half, and Kayleigh, nine months.

The farm’s production is about 1850kgMS/ha, a level Hawe puts down to looking after his stock and feeding them well.

The type and quantity of feed depends on the cow’s condition and as calving approaches, he splits his herd into three mobs: early, mid and late calving.

“In the two weeks before calving, we’re transitioning the cows off the crops – we do a mixture of kale and beet – and need to get them back onto grass.

“Grass is your prime feed and a lot of meta-

about this cow and that cow – but it’s really such a breath of fresh air and the staff leave the room saying ‘I want to see the first one calve, where is she?’ They go out with fire in their bellies.”

Then Hawe’s three rules come into play – observation, observation, observation – and that

“We’ll bring them in as if they’re going to be milked, they get fed in the shed, teat sprayed to minimise mastitis and we’re able to easily identify the mothers. get the local vet out for a pre-calving pep talk.

“They will come out and drive it at the staff from another angle and say ‘this is the reason why we do this’ and hearing it from someone in a professional environment also gets the message through.

“We’ll do it every year, the same chat. I can picture the first opening lines – he’ll tell a joke

means checking the herd at least five times a day, keeping an eye out for any problems like milk fever.

“You need to be there to see it; you can’t see it from the house. We run an RT system in AugustSeptember and if there’s any issue, everybody needs to be contactable.

If you’re there, at least you can do something about it.”

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Calving starts with the heifers on July 23 and the mixed age cows come on stream on August 1.

Hawe aims for BCS 5.0 for the mixed age cows and 5.5 for the heifers.

After feeding them well, he believes in treating cows as gently as possible and he won’t let his staff chase them with motorbikes.

“The cow is stressed enough when you’re taking its calf; why would you to run her round the paddock?”

Instead, he puts all the cows through the shed every day.

“We’ll bring them in as if they’re going to be milked, they get fed in the shed, teat sprayed to minimise mastitis and we’re able to easily identify the mothers.

“Out in the paddock we identify the correct mother and tag the calf with her number, pick up the calf and bring all the cows to the shed to separate them out. It’s also getting them used to the shed, the people, the change of scenery and all that again – back into the routine. After four or five days of doing this, the cows will normally walk in anyway.”

To prevent infection, every calf is navel sprayed with iodine in the paddock and is then delivered to the fulltime calf-rearer Hawe has employed for five years. This year she will

Cow condition is key to successful calving, says Enda Hawe.

be working in a new purpose-built calf rearing shed.

Every calf is stomach tubed a feed of colostrum when it comes in, to guarantee a good start in life.

“We can see the calf sucking its mother out in the paddock but that’s not good enough really. They need a total of 12% of body weight in the first 12 hours – 6% of that in the first six hours (a 30kg calf should get 1.5L at its first feed and a 12 hour total of 3.5L).”

And when the weather turns cold and wet, the new calves are washed in hot water to warm them up and prevent losses.

“Last August it rained nearly every day and we brought in little Jersey calves that you wouldn’t recognise on the ground and we washed them. We

had a superb team effort to keep those girls alive.

They were our highest BW animals; why would you want to jeopardise your potential?”

Hawe says successful calving is the key to success.

“Calving only lasts eight weeks so it’s a small price to pay for huge reward. It’s about having the right people in the right place, a team that understands what they’re doing, knows it’s going to be difficult and that the success of the whole year depends on these months.

“Once the last one’s calved, the race begins to get them back in-calf again because usually the last of our cows calve on the first of October, we’re mating on the 23rd, so we’ve got to get those cows up to speed to get

them into calf. “The key for a successful mating is the cow condition.”

The process starts with deciding which genetics to use.

“We’re after cross bred 50/50 Friesian Jerseys. To do that we cross all the large Friesians with the smaller Jerseys and the smaller Jerseys with a large Friesian.

“The race is always to get weight on the cow because chasing milk is one thing but if you chase milk too hard, the cows can suffer.

“You need to realise a cow is losing weight or she may need more feed or once-a-day milking.

There are several ways we can help a cow but the main one is oodles of feed, because if they’re in good condition, everything seems to work pretty good.”

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Dairy News // june 14, 2011

33

animal health

Mastitis beating flush, dip PETER BURKE

A TEAT flushing and

dipping system designed to better combat mastitis will launch at National Fieldays.

The ADF (automatic dipping and flushing), developed in Britain, recently gained approval from Fonterra, paving the way for the technology in New Zealand.

The first system in the Southern hemisphere was installed last year on a Feilding dairy farm,

negative pressure very soon after milk has stopped flowing so as the teats contract it puts the teat dip up into the teat canal and helps disinfect the cow and preventing mastitis infection.”

Green claims many farmers don’t like other spraying or dipping systems because they function 3 or 4 minutes after the cow has finished milking, so the teats are all contracted. This can be hit-and-miss.

With the ADF system, once the cups come

“ADF is a simple way of eliminating cross contamination.”

Cost varies depending on the size and nature of the customers’s shed.

Cupping on with the ADF cluster.

“ADF is a simple way of eliminating cross contamination.” but Fonterra asked for full testing before it would accept milk from the system. Only six units are running in New Zealand.

ADF director Toby Green says this is the only system that applies the teat dip to the cow while the milking cups remain on.

“Basically the system picks up the end-of-milking signal from the milk meter or cup remover then just before the cups come off it injects the teat dip into the top of the liner.

“As the cups come off, it coats the teat dip on to the teat and gets that droplet of teat dip onto the teat while it’s wide open. There’s slight

off the cow they are automatically flushed six times with a peracetic acid sanitiser, leaving the liners clean for the next cow.

This process prompted Fonterra to ask for testing to show there could be no risk of cross contamination of milk by the flushing process.

Green likens mastitis infection at milking to humans licking a teaspoon at a party and passing it around for others to stir their tea.

“It’s the same with cows. You normally put the cups on and the cows have dirt and bacteria on their teats from being outside on the farm. You take the cups off and put them on the next cow.

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Dairy News // june 14, 2011

animal health

Keep a herdTAKING health plan handy WE’RE A STAND ACTUALLY WE’RE TAKING THREE WRITE A ‘herd health and husban dry plan’ as a means of keeping animals healthy and productive, and to encourage high standards of husbandry practice, says DairyNZ senior scientist Gwyneth Verkerk.

“It enables any annual incidence of specific conditions which impact productivity, such as lameness and mastitis, to

be recorded and performance reviewed at least on an annual basis.

This means issues of specific importance on the farm can be identified for improvement.”

A plan describes the farm’s specific policies, as well as key performance indicators adopted to monitor herd health management.

“Such plans can be part of an annual performance review, in conjunction with your regular veterinary consultations, to prioritise areas for improvement.”

Most farms already have established policies for herd health management, but these are seldom documented. A plan also benefits people management, Verkerk says.

“It helps employees understand the farm’s policies.

“It is useful when completing orientation of new staff, as it tells how things are done on the farm.

“It can also identify areas of competency where staff need further training to complete their jobs to the required standard.”

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ing, when their natural defences are low. Heifers, in particular, are prone to infection just before and after calving.

DairyNZ senior scientist Jane Lacy-Hulbert says act quickly if you see five or more cases of clinical mastitis per 100 cows calved.

The main source of bacteria causing mastitis at this time is the cow’s surroundings, e.g. pasture, farm races and manure. Hygiene is most important, she says.

“Now is also the ideal time for annual maintenance of the milking machine and teat sprayer, and make sure a full service and test is done before the first cows calve.

“Change rubberware as required and aim to start the season with new liners. Calculate when the next liner change is due and mark it in the diary, as it is easy to forget later.

“Make sure the whole milking team know how to spot cows close to calving; they can recognise the clinical signs of mastitis; they know how to do an RMT test and know what to do when they find a new case of mastitis.”

Mastitis prevention techniques Keeping cows and their teats as clean as possible during the last two weeks before calving and for threefour weeks after calving greatly reduces the risk of mastitis.

This often proves a challenge on most New Zealand farms in spring, but here are a few suggestions from Lacy-Hulbert: 1. Consider using an internal teat sealant for heifers, infused about four weeks before the planned start of calving. Research has found this reduces the risk of mastitis by Streptococcus uberis by more than 50%.

2. Teat spray heifers’ and cows’ teats every time they are brought to the farm dairy before calving.

Applying teat spray to heifer teats three times weekly for the three weeks pre-calving has been found to reduce bacteria numbers on teats and to reduce the risk of mastitis by Strep. uberis by more than 50%.

3. Minimise oedema. Udder oedema increases the risk of heifer mastitis but there are no agreed ways to reduce it. Reducing over-conditioning before calving may help. Feeding hay pre-calving may help reduce oedema but did not reduce mastitis during a research trial.

4. Make sure calving areas are as clean and dry as possible, particularly for those cows likely to calve in the next 12-24 hours. Some farmers let ‘imminent calvers’ through onto a clean break for the night grazing 5. Remove calves and milk cows as soon as possible, ideally within 12 hours of calving. Research found this twice-daily calf pick-up reduced the risk of heifer clinical mastitis by 45%. Large herds also saw benefits from reduced mis-mothering.

Dairy News // june 14, 2011

35

animal health

Plan now for calf rearing WHILE PLANNING calf rearing systems, start by reviewing the success of last year’s operation.

What worked well, what didn’t work and how could the system be improved?

Well-grown heifers are the foundation of the herd; growing them well starts the day they are born.

Are there enough trained and competent staff to assist calving cows, to treat cows with milk fever and other metabolic diseases, and to rear the important next generation of calves? Would staff (and cows) benefit from further training in husbandry skills?

Every year several thousand new people enter the industry, often at the busiest time when opportunities for training and supervision are minimal. They need to understand what is required well before the first calf is born.

New Zealand welfare codes are specific about the management and handling of calves and cows at calving time, when they’re at greatest risk. Use the following checklist to decide whether facilities and management systems meet the required standards.

Calf rearing facilties

• Were all pens sheltered from rain and draught-free?

• Did all calves stay warm and dry? (exposed concrete, bare earth and mud are not acceptable).

• Could you smell ammonia in the calf shed? Humans are as sensitive to ammonia as

recognise a sick calf?

• Did all staff handling young calves know how to lift, carry and handle them?

• Were treatment procedures for the main illnesses of calves (scours, navel/joint ill and pneumonia) documented and was treatment effective?

• Were sick calves

“Well-grown heifers are the foundation of the herd.” calves; if it is unpleasant for people it is enough to cause health problems for calves. Excessive ammonia usually means insufficient bedding material.

• Do you have an area where sick calves can be separated from the main calf rearing area?

• Were calf pens disinfected regularly? Railings, gates and entrance ways, areas around water troughs and meal bins should be disinfected at least weekly.

Heath care and handling • Were calves checked twice daily for signs of ill-health? Check for a clean moist cool nose, alert with responsive ears, clean navel, coat shiny and supple, no mouth ulcers, able to stand unassisted, bearing weight on all four legs, keen to feed.

• Could all staff involved with calf rearing

moved promptly to the sick bay and then kept strictly isolated?

Humane destruction • How were animals destroyed on the farm (calves and cows)?

• What training were workers given about how to destroy animals humanely?

• Was someone competent always available to destroy an animal if

DairyNZ senior scientist Gwyneth Verkerk.

required?

• Who decided whether to destroy an animal or call a vet?

Selection for transport • Was every bobby calf assessed individually before being transported? Check for a dry withered navel, firm hooves with wear on the soles, at least four days old, healthy without injury or deformity, able to stand unassisted and bear weight on all legs.

• Were bobby calves fed as close as possible to time of pick-up?

(Animal Welfare (Dairy Cattle) Code of Welfare 2010 states: “not more than two hours before transportation”).

Colostrum, food and water • Did all calves get ‘gold colostrum’ (from the very first milking) within 6-12 hours of birth? (GGT levels in blood samples from calves will indicate if they got enough colostrum).

• Were all calves fed colostrum (or a suitable substitute) for their first

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• Were calves fed at the same time each day as a regular routine?

• Was clean drinking water freely accessible to all calves at all times?

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Dairy News // june 14, 2011

animal health

Calving kit makes tough job easier WHEN YOU’RE cold, wet and tired, stumbling in the

Being prepared means less stress when calving starts.

dark at 3am, searching for calving ropes will make a tough job tougher.

Having a well-stocked, easily accessible calving kit will help reduce stress levels and minimise calvingrelated health issues and losses. Take the time to go

through a kit with staff before calving starts.

Using the kit’s contents as a training tool helps explain the basics of calving a cow to new staff and will serve as a visual reminder when they open the kit. For example, if you push aside a bag of calcium to reach for lube, hopefully it will trigger a check for signs of milk fever.

By containing the kit in a secure weatherproof box, expensive and essential items are less likely to get lost.

Managing the consumable items with a replacement policy, clearly written on the kit lid (‘if you use it, replace it’) or having a procedure of recording consumables used, will avoid having to find a farm store open on a Sunday.

Ensuring a reliable form of communication between staff, managers and vets is essential; make sure cellphones or radios are charged and tested for operation and coverage. If using cellphones, make sure staff members have sufficient phone credit or alternate easy access to a landline. On larger farms, an 0800 number to a duty manager may overcome the “no credit on my phone” issue.

Display essential numbers clearly: write the vet and manager’s numbers with a permanent marker pen on the kit lid or add the numbers into staff mobile contacts or on speed dial.

Having assembled a calving kit, ensure everyone knows where it is – perhaps in a water-proof storage container at the gate of the calving paddock.

On larger farms with more than one calving paddock, assemble multiple kits, one kit per calving area.

Portable calving kit must contain the following: • Metabolics – clearly labelled milk fever treatments, starter drench (colour code to avoid confusion if literacy skills are lacking).

• Three calving ropes (check the ropes are supple and strong. Ropes may have deteriorated since last use).

• Two litre container of lube (a plunger pump is easier to dispense lube, especially if busy holding a rope).

• Old towel and soap for cleaning hands before and after assisting calving.

• Bucket (a lid is handy).

• Notebook and pencil (pens stop working in the wet).

• Ear tags or other calf ID system (pre-numbered tags with corresponding numbers record sheet to reduce the chance of recording mistakes).

• Spray paint – red plus another colour (use red as warning colour e.g. withhold milk).

• Pocket knife (a knife with a brightly coloured plastic handle is easier to find if dropped in the paddock).

• String/bailing twine.

• Gloves: rectal and exam (better too big than too small. Large size will fit most people).

• Sustenance (energy bars are a quick pick-me-up, to avoid mistakes due to fatigue).

• Torch and spare batteries (use a head-torch to keep hands free).

• Iodine spray (pre-mix iodine/water, follow manufacturers’ recommendations. Don’t make it too strong, 7% is ideal. Do not use teat dip as a substitute).

• Pocket size laminated intervention guides (check out DairyNZ Spring Survival Guide).

in brief Upskilling workshops TO HELP get ready for this calving, DairyNZ is running StockSense calving workshops targeting the skills required. They will run June 7 to July 5 at 15 locations.

These are the first in a series of StockSense workshops to promote good stockmanship and animal husbandry, the cornerstone of any profitable dairying enterprise.

Dairy News // june 14, 2011

37

south island dairy event

Looking at the bigger picture INFLUENCES BEYOND farmers’ control will be examined in the context of farming’s ‘bigger picture’ at the South Island Dairy Event (SIDE) conference on June 27-29 at Lincoln University near Christchurch.

The ‘Challenge your future’ theme will cover many concerns facing the industry.

Organising committee chair Simon Mackle says it will be the ideal place to bring some of those issues forward for discussion. They include external political and economic influences, and sustainability in resources such as people, and environmental sustainability including climate change.

“As an industry, and as individual farmers, we must be aware of the environmental impact of farming, and what we must do to have our families farming in 50 years.

“We must also be conscious of meeting consumers’ needs and public expectations. What we do to attract and retain new generations into the industry also needs to be aired.

“Many global economic fluctuations we can’t change, but being aware of the climate we operate in and what’s going on beyond the farm gate helps each of us with long-term decision making.”

Speakers and discussion forums will help farmers better understand issues, hear new ideas, focus the thinking, and make better informed choices.

“If we don’t talk about these things and plan our own future we

world macroeconomic conditions and trends, while a panel discussion looks at how South Island dairy growth can be sustainably managed.

Workshops new this year are some with a longer format and

“If we don’t talk about these things and plan our own future we lose control of our own direction.” lose control of our own direction.”

The event is also to help individual farmers to challenge themselves.

“So it’s the perfect opportunity to take time out, assess what we’re doing well, where there’s room for improvement and what we need to do next. And as well as stimulating the brain, farmers tell us it’s a great chance to chat with people and have a good time.”

Mackle says they are looking forward to having the event at Lincoln, to help the Christchurch area economically.

Speakers include All Blacks coach Graham Henry talking about high performance leadership.

Other keynote speakers address sustainability, climate change, and

extended presentations prior to open discussion. Thirty-one topics across five workshop sessions over three days range from career progression to employment law and understanding financial statements, to wet weather management and OAD milking and low cost grazing systems.

Information presented at Business SIDE 2011 is pitched at owners, sharemilkers and equity partners.

At least 400 registrations have been received. Full registration costs $290 incl. GST with a discounted rate of $265 if more than one registration is received at the same time from the same farm.

Tel. 03 319 6456 www.side.org.nz

Finding the perfect cow in your paddock PERFECT COWS may be hard to come by; a perfect farmer is one who pays attention to detail.

Otago dairy farmer and world-class animal evaluator Denis Aitken will speak about what makes an ideal dairy production system during a South Island Dairy Event (SIDE) farmer workshop at Lincoln University on June 28.

Aitken is past-president of the NZ Holstein Friesian Association and a senior judge and classifier. He chairs the animal evaluation unit TOP (traits other than production) group, and has represented New Zealand at world classification workshops in Europe. He and his wife Judy farm in partnership with sons Andrew and James, and their partners Sonya and Celia, on the Taieri Plains near Dunedin.

This puts him in a good position to offer his ideas on what a good cow looks like, irrespective of their breed. And most importantly he also knows what is required to get the most from the herd.

One key aspect of a good dairy cow is obviously production, and the more lactations that you get from a cow, the less replacements to rear, or more surplus stock to sell.

This all adds to the bottom line.

It’s not rocket science; the better

the functional traits, the longer she will last.

But while genetics are vital to lactation, good stockmanship and attention to detail also influence extra lactations; this is something Ait-

ken says needs more recognition.

“Good stockmanship has always been important, and will never stop being vital to getting the maximum out of your herd.

Some farmers I’ve come across are having trouble even identifying the leg causing lameness in their cows. It’s something that needs to be addressed.”

Breeding Values (BV) are estimated for 16 TOP traits, as well as the six traits directly included in the Breeding Worth (BW). Farmers need to know how to spot trait weaknesses and defects, like undershot jaws, and feet and leg issues, and make sure they make purchasing and breeding decisions based on solid information. Failure to focus on all the traits that make up a good cow can influence calving and fertility.

Aitken has travelled widely and knows the ideal cow is the one for New Zealand conditions, not for Europe or anywhere else.

He concludes the perfect cow is the cow that does best for your own property. That’s not a breed type, but rather a cow that fits the environment and the production goals of individual farms – not a national ‘one size fits all’ animal.

“At the end of the day a good cow is the one that makes the most dollars.”

Simon Mackle

Working for all New Zealand dairy farmers DairyNZ is the only organisation to represent 100% of all New Zealand dairy farmers in protecting and advancing their competitive edge on the global market. We do this through collecting the dairy farmer levy and investing it in world class applied dairy science, biosecurity, pest control and the development of proven tools that ultimately achieve change in profitable, sustainable and competitive farming practice.

0800 4 DairyNZ (0800 4 324 7969) www.dairynz.co.nz

South Island Dairy Event 21-23 June 2011 Lincoln University, Canterbury Organised by farmers, for farmers, SIDE 2011 offers a programme of interactive workshops and sessions designed to challenge, motivate and inspire, delivered by fellow dairy farmers, industry leaders, rural professionals, researchers and technical experts.

Register now Download full programme and registration form from www.side.org.nz or phone 03 325 3661

38

Dairy News // june 14, 2011

south island dairy event

Slick and timely on a busy farm Terry Kilday

MANAGING YOUR own time is the key to being a good business operator, and in particular a good people manager.

Highly profitable farms require timely and wellresearched decision making, particularly when the business has large herds across multiple farms. They

WOULD YOU CHECK YOUR BANK BALANCE ONLY THREE TIMES A YEAR?

also need a co-ordinated team who know what they are supposed to do, and why.

Terry Kilday, an operations manager of the Camden Group, believes the best way farmers can manage their business is by starting with their own organisational skills. He’ll be joining fellow Canterbury dairy farmer Jeremy Duckmanton in presenting a workshop at the South Island Dairy Event (SIDE) on June 27-29 at Lincoln University.

Both farmers, well respected for the quality and performance of their large-scale operations, will be sharing their experience in the art of time management. They describe a slick operator as being someone who is highly organised, putting forethought and planning into daily, weekly and seasonal tasks.

“But being able to manage your own time is a really important part of being organised; you’re not in a posi-

Canterbury farmer Jeremy Duckmanton

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tion to help others if you haven’t mastered your own time” Kilday summarised.

The dairy enterprise he manages employs 13 staff, and milks 2125 cows over two properties at Rakaia in Canterbury – Willsden Farm and Prairie Farm. Each farm has six full time staff, including a farm manager and 2IC. He also oversees operations on the company’s Chiswick Farm.

It’s a complex operation that needs a high level of input.

Kilday has found a diary that tracks what needs to be done and who is where, is valuable to his own personal time management.

“The way teams work out their roles differs, even within our company’s different farms, but the key is finding out what works for you and for your team, and making it work to the best of your ability.”

He has also found that it is important not to get bogged down in trying to do all the day-to-day farm tasks, but to master the skill of delegation.

“Be clear your role as manager of a larger enterprise is to manage production, profit and people. That means monitoring and recording the staff’s work as well as the farm performance, ensuring the staff are doing the jobs you want them to be doing. If you feel you have to be doing everything yourself, you’re not helping yourself or the farm’s efficiency, nor are you motivating or teaching your staff and building skill levels.”

Flexibility is also the tool of a slick operator. Kilday has found that being open to suggestion has allowed some helpful ideas from his employees to filter through the ranks, increasing efficiently within the operation.

“Don’t get set in your ways and close the door to new ways of doing things; there’s always opportunity for improvement even once you have a really efficient operation up-and-running.

Dairy News // june 14, 2011

39

south island dairy event

Pay attention to detail PAY ATTENTION to

detail and the big things will look after themselves.

That’s a philosophy Canterbury farmer Leo Donkers uses to manage his dairy enterprise, and it can equally apply to any aspect of life.

“Do the basics well; focus your efforts on quality feed, health stock and manage your finances. Break the operation up into components, knowing that each must perform for you to maximise your returns,” he explained.

He and fellow farmers Alan Davie-Martin and David Lister are sharing their views in a presentation on the critical success factors required to achieve a highly profitable farm system in a workshop at the South Island Dairy Event (SIDE) on June 27-29 at Lincoln University.

Some of the options Donkers employs on his farms include using the cheapest feed first, following up with high quality supplements, while keeping an eye on profitability at all times.

Re-pasturing is one of the best investments the farm has, and new pivot irriga-

tion technology that has vastly improved water efficiency has also been an excellent purchase.

Donkers, a corporate farmer in mid-Canterbury, is in a family business which owns three dairy farmers and two support farms, and which employs about 30 staff.

From small beginnings 16 years ago, it’s grown into a big operation and because of its size, he has moved from less handson work on-farm, to more of a people manager.

But the scale doesn’t detract from the fact that big or small, and in good times or tight years, each farmer has to be sure every dollar spent has a return.

During DairyNZ’s ‘Tight Management for Tight Times’ seminars in 2010 Donkers focussed on that by looking in great detail at cost centres, analysing where costs fell and how the farm’s management was influencing production and profitability.

The key message is consistency in management across the years of fluctuating returns. Measuring, monitoring and managing is a big part of the operation.

“It’s only by monitoring and analysing in cost centres that you get a good picture of what you’re doing, and that detail helps to get ahead.

It produces an information stream that gives us huge confidence in the decision making for our board, our advisors, and

for our senior staff.”

Donkers says investing in people as well as land and animals is equally important for his operation. Employing the right people, and coming up with the mechanisms to make sure they are part of the business, is key.

Leo Donkers (centre) speaks at a DairyNZ Tight Management Day last year.

RICK PRIDMORE is strategy and investment leader for sustainability at DairyNZ. After completing a PhD at the University of Otago in 1980, Pridmore worked as a government scientist on the nutrient management of lakes, rivers and estuaries.

During his 11 years as a researcher, he published 90 scientific papers (including one book), gave 200 public presentations, and worked on commercial consulting projects in the early development of Crown Research Institutes.

In 1993 he became research director of the National Institute of Water and Atmospheric Research (NIWA), acting as science and policy spokesperson, developed NIWA’s research portfolio, and created research and extension programmes on climate change, greenhouse gases, biosecurity, resource management, sustainable energy and aquaculture.

BILL ENGLISH, MP for Clutha/Southland, is Deputy Prime Minister and Finance Minister.

Born in Dipton, Southland, he farmed in the area.

He was first elected to Parliament in 1990 as MP for Wallace, a large rural electorate covering the deep south-west end of New Zealand. He completed a Bachelor of Commerce degree at Otago University, followed by a Bachelor of Arts (Hons) in English Literature at Victoria University. English has held ministerial posts in education, health, revenue and finance and was leader of the National Party from October 2001 to October 2003.

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Speaker profiles

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40

Dairy News // june 14, 2011

south island dairy event

Top speakers for SIDE 2011 Graham Henry

With 78 wins from 91 Tests, All Blacks coach Graham Henry and his coaching team have won 85% of their tests.

Henry first rose to prominence coaching Auckland and the Blues. Between 1998 and 2002 he coached Wales and in 2001 became the first non-Briton/Irishman to coach the Lions.

Henry received IRB Coach of the Year Awards in 2005 and 2006 after Bledisloe Cup and Tri Nations wins in each year, alongside a DHL NZ Lions Series clean sweep and Grand Slam in 2005.

Richard Westlake

After a 20 year management career in banking and merchant banking, Westlake established Westlake Consulting Ltd in 1999.

The firm has grown both here and internationally, expanding in Australia, the Middle East and East Asia.

He has 20 years experience as a director and board chairman and is currently chair of the Telecommunications Carriers’ Forum, Careerforce Industry Training Organisation and software company Intergen Ltd.

He is an independent director of Kiwibank Ltd, Dairy Goat Cooperative and the Royal New Zealand Air Force Leadership Board.

Westlake is an accredited Fellow of the Institute of Directors in New Zealand and an International Fellow of Mudara – Institute of Directors, Dubai. He has a Rowing Blue from Oxford University.

Paddy Sweeney

Is a businessman, entrepreneur, franchisor, author and speaker.

He is the founder and chief executive of Westcoast Brewing and has founded two franchise networks that he still owns. He has written eight books.

He is known as an innovator, problem solver and people inspirer.

About 15 years ago he founded The Good Bastards Club on the West Coast. It has attracted 3000 members worldwide and has run many Politically Incorrect Good Bastards events.

Sweeney delivers high impact presentations with homespun original material that tends to get to the nub of things.

RICHARD WILKS

Wilks joined ANZ as chief risk officer in January 2006, overseeing all areas of risk in the New Zealand business, including risk strategies, policies and processes and monitoring the effectiveness of the risk management Framework.

During 2010, Wilks moved to his new role as chief credit officer where he focuses on key risk priorities including wholesale credit, lending services and provision management.

A chartered accountant, he has 25 years banking experience in New Zealand, Australia and Asia including roles at Standard Chartered Bank and Citibank.

He is Bachelor of Commerce, University of Auckland, and is a member of the New Zealand Institute of Directors and the New Zealand Society of Accountants.

He has held directorships and been chairman of several medium-sized companies in New Zealand.

Tim Groser

Trade minister Tim Groser was born in Perth, Scotland, and came to New Zealand with his parents in 1958.

He studied at Victoria University and worked as a policy adviser in Treasury, Ministry of Foreign Affairs & Trade and the Prime Minister’s Advisory Group Before his election to Parliament, Groser was New Zealand’s ambassador to the World Trade Organization (WTO) and chair of agricultural negotiations for the WTO. He entered Parliament as a list MP at the 2005 general election.

Dairy News // june 14, 2011

41

machinery & products

Easier life for cows in yard AGRI-MAT

INTERLOCKING

panels of rubber matting will this season give a Kaimai herd an easier life in the dairy shed yard.

The Kaimai farm (t/a Evendale) is owned by Ken and Thelma Hollinshead with son Tony and his wife Kirstin.

Increasing use of yards as on/off pads protects pasture during wet weather; cows also benefit from the softer surface.

At milking, the cows can stay longer and the greater expanse of concrete gets greater use.

When Dairy News visited they were halfway through covering the yard. “We spread the project over two seasons, thinking if it doesn’t work we’ve made a big financial commitment,” said Hollinshead.

But it has worked and they are now ready to lay the second section when the cows are dry.

The Agri-Mat panels are interlocking on all four sides, are 1190 x 850mm x 24mm thick, each covering 1m2 . Agri-Mat Kura have a stud base so the hoof can sink into the mat and have maximum traction and comfort.

Tel. 0800 686 121 www.numat.co.nz

Ken Hollinshead

Keener spreading at turns, narrows NEW FROM Robertson Manufactur-

ing is the company’s 700 series trailing fertiliser spreader with the patented Transpread Twin Floor system.

Twin Floor uses two floor chains and bar conveyors, and twin drive gear boxes, giving a high degree of accuracy to spreading.

During turning, the wheel on the inside of the turn slows down, slowing that conveyor, while the outside wheel speeds up, increasing the conveyor

speed on that side. So spreading on corners and bends is more accurate.

The system also allows the operator to ‘turn off’ one side of the spreader for narrow strips and tapered runs.

Load capacity can be increased because each drive is sharing the load.

Robertsons will display a Transpread 785 (8.5 tonne) twin-floor twin-drive spreader.

Tel. 03 303 7228 www.robfarm.co.nz

Tow and Fert Multi 800 The Multi Role Applicator

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- Soil Conditioners (eg. Humates)

The Tow and Fert means that you are no longer dependant on contractors with ground spread trucks and aerial applications, who may not want to do a small job of up to 8 hectares. This enables the optimisation of your fertiliser programme with timely, cost effective and regular applications!

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The Tow and Fert’s guaranteed even spread over an 18 metre swath gives you confidence that every plant is evenly covered and each cow is receiving the required mineral dose to keep metabolic issues under control.

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42

Dairy News // june 14, 2011

machinery & products

Fill at shed, tow to calves OPEN YET closed milk troughs in a new calf feeder from McKee Plastics enable a farmer to do the filling at the shed, then haul the unit to the paddock for feeding with no risk of spillage or spoilage.

The company says this is the only open mobile feeder that can transport milk in its open bays.

“We’ve tried and tested this, and know it’s the most functional, up-to-

date feeder on the market,” a spokesman says.

The feeder is made from high impact UV-resistant polyethylene plastic.

The feeder comes in 30, 40, 50 and 60-teat (tandem) options, with 550L and 750L tanks.

Interconnecting milk bays ensure continuous flow throughout the whole feeder – or just use a portion.

An easy, three-step operation gets the unit ready for feeding: mix milk in calfateria tank (no double handling); tow the unit to the desired location; release valves, letting milk fill the bay or bays. The feeder will self-level as required.

Cleaning and hygiene are said to be “a breeze.” A simple cleaning and maintenance kit is supplied.

McKee Plastics is a family-owned business with a 35 year history. It has branches in Feilding and Waikato.

The company’s in-house designer takes ideas from conception to manufacture.

The product range includes kayaks, culvert pipes, calf rearing equipment, water reticulation and playground equipment. sales@mckeeplastics.co.nz Tel. 0800 625 826

‘Best part is talking to the experts afterwards’ SEVERAL OF 70 entries in the Fieldays Innovation Competition are wouldbe commercial products that got their start in life at previous contests.

Innovation Centre chairman Tony Smith

says at least six inventions entered this year were first made public in years past.

“These have promise and their inventors are launching and looking for partners or investors

to help grow their businesses.

It’s been great to see entrants who have utilised the resources provided through the Fieldays competition to take an idea through to

rry u l S e v i t Innova ement manag

a commercial product.

That’s what this competition is all about and this year’s entrants prove its working,” explains Tony.

All inventions entered into the competition will be kept confidential until they are unveiled at the newly developed Innovation Centre, powered by the University of Waikato, now located at a large and prominent site.

Smith says the entries are the highest qual-

ity ever and range from horticultural products to those that are applicable on dairy or sheep/beef farms, to ones that suit lifestyle farmers.

“The various prizes for winners of the competition are quite lucrative.

However, past entrants are telling us one of the best parts of the competition is the support they receive during and after the event.

“We have an infor-

mation evening where industry leaders and successful past entrants talk to new entrants about the challenges and successes they’ve experienced. Plus, those of us who help organise the competition work to support the entrants after the competition as well.”

The Innovation Competition has run for 38 years at Fieldays. It is divided into two sections to incorporate both back-

yard creations, through the ‘Inventions Category,’ and commercial innovations, through the ‘Equipment Category.’ There is also a ‘Young Inventor of the Year’ category for youth under the age of 24.

Up to eight awards will be presented to the most pioneering inventions. The top prize of $5,000 goes to the winner of the Inventions Category.

Deals to grime, odours DOMHEALTH IS newly

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Zealand-made Zeosoft Soaps, a ‘natural’ hand cleaner that removes ingrained grime and dirt, and absorbs odours.

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the soap contains only biodegradable plant and natural ingredients, and “the cell structure in the SoftZeolite minerals allows them to go on sponging up contaminants.”

Sold in a gel format packed in a 300gm tube, 4.75kg pump container or 4kg refill for wall mounted dispensing.

It is also available in a paste format and is packed as a 100gm hand soap or in a 300gm tube, 600gm tub, 2.5kg tub and a 4kg refill.

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5R, 6030 & 6030 Premium Series Tractors – 80 to 155 engine hp* (59 - 114 kW) – 4 & 6 cylinder models

Dairy News // june 14, 2011

43

machinery & products

New 4x4 carries four RUSTLER 4X4 farm utility new

from New Holland hauls supplies or people and their gear.

It can be configured to suit, in two- or four-passenger versions, with petrol or diesel engines.

Transmission is via a widerange CVT, giving the vehicle 40km/h top speed.

And it’s built tough, New ZHolland asays: the frames of

Fibrous waste kept in line EFFLUENT GEAR from GEA Farm Technologies is

saving a Waikato dairying couple hours every week.

Simon and Joanne Belton, Matamata, own a 73ha (eff.) 300-cow farm and their intensive operation has required a sustainable, economic effluent solution.

Three years ago, after milking two herds on separate farms, they decided to maximise the return off the land they had rather than buying the lease block the other herd was on. This involved a big spend on the home farm, including a 40-bail Westfalia rotary shed and a feed pad capable of handling cows milked all year round, with individual cows dried off 50 days prior to calving.

The cows’ diet is based on Keenan approach: high fibre in the form of straw acting as a rumen buffer for other feeds, addressing carbohydrate, starch, protein and energy requirements.

Those feeds have included kiwifruit, soda grain, soy meal and maize silage.

The regime delivers record production – 146,000kgMS off 300 cows for 2010-2011, but also fibre dense effluent that typical effluent irrigators cannot cope with.

Says Belton, “Before we went with the GEA system I would have spent an hour a day during spring unblocking nozzles and pump heads. It couldn’t manage the slurry going through.”

The GEA system includes Houle pumps and components designed specifically for effluent management. A Houle Agi-Pump with a 16” chopper propeller transfers feed pad waste to a slope screen separator.

“To get the most out of effluent you need to separate the solids from the liquid stream,” Belton says.

Effluent with any sort of solids going into a storage pond is simply too difficult to manage later on, and only transfers the problem.”

GEA Farm Technologies effluent expert Murray McEwan says slope separators are not new technology, but the beauty of the GEA design is no moving parts, no augers or motors that can break down.

Belton will use the dry solids on the 17ha of maize he grows every year.

“Last year we spent $25,000 on fertiliser for maize.

If we apply this and need no other fertiliser I can save about 5c/kgDM on the maize cost.”

www.gea-farmtechnologies.co.nz

the 120 and 125 models are made of the same grade corrosionresistant, lightweight aluminium used in jet fighters; while the 115 has a steel frame and box construction.

Capacities range from 420kg to 725kg.

All models have high ground clearance and independent front suspension; the Rustler 115 also

has independent rear suspension.

Rack and pinion steering the package to ensure ease of handling.

On the 14hp 115 petrol model the driver engages the shift-ondemand 4WD; the larger models engage 4WD automatically.

The 20hp 120 diesel and 23hp 125 petrol models have the maker’s IntelliTrak, an automatic, all-

wheel-drive system that delivers traction automatically – no levers or buttons – and the auto system transfers power to the wheel/s.

Safety features are certified ROPS and retractable safety belts at all seats. Bench seats are standard with retractable belts across the range.

Tel.06 356 4920 www.newholland.co.nz

44

Dairy News // june 14, 2011

machinery & products

Shifts six hoses together DAIRY FARMING’S worst-of-all job – shifting travelling effluent irrigators – is said to be easier and cleaner with the Ezi 018 made by Ezi Irrigation.

No more shifting one hose at a time, says developer Jeff Riordan. The Ezi 018 attachment behind an ATV can tow up to six sections of hose at a time, at-

tached by camlocks.

And the travelling irrigator can be attached to a tow ball on top of the Ezi 018, so all the pipes and the irrigator can be shifted simultaneously.

An irrigator near the end of its run up a paddock is often pulling many metres of full, heavy effluent hose. This puts extra

strain on the drive mechanism of the sprinkler and can cause it to stop moving forward, leading to ponding.

To reduce this drag Ezi 018 enables the farmer to bring the middle section of the drag hose forward, reducing the length of heavy hose the sprinkler has to pull.

“This can be done while the irrigator is working and with the hose full it slides around the Ezi 018 with less chance of folding,” says Riordan.

Tel. 03 525 9832 www.ezirrigation.co.nz

Hose shifting help is at hand, says Jeff Riordan.

Save Power and Lower SCC Count!

Sprayers easily upgrade

“Maree and I would like to let you know how pleased we are with our Varivac. Not only does it save power, but as you promised it dramatically reduced our SCC. Prior to installing the Varivac we were grading at every pickup for SCC (the kind of stress parents of young children can do without in spring). I have enclosed a copy of our Fonterra SCC graph clearly showing the day the Varivac was fitted. We now average 130,000 SCC and life is good.

We would not hesitate to recommend Varivac to anyone else in our situation.

The farm had serious Somatic Cell Count figures and mastitis problems. We installed a Varivac vacuum control system and the problems are now gone.

Quite simply it works.

THREE NEW sprayers use a common framework,

Steven Robb, Dairy Farmer, Morrinsville, NZ

Best wishes and thanks again”

Hamish & Maree Tong 06 272 6349

We have had many years of high SSC. In fact, since putting in a new milking plant 10 years ago and no one being able to fix the problem and having culled heavily because of this we didn’t know where to turn next.

We saw the article on Varivac and decided to give it a go. Well, we are delighted with the results. Proof is in the graph taken off Fence-post.

Our SSC compared with the company average. Coupled with the added power savings we couldn’t be more pleased. Thanks Varivac

(Last pick-up dried off.)

Varivac installed here!

Gil and Jill Hall, Dannevirke, Hawkes Bay, NZ

See us at Fieldays – Site G119 Use our finance option for a Cash Flow Positive Result!

‘Specialists in Dairy Automation Solutions’ For FREE advice and no-obligation quote,

www.corkillsystems.co.nz

Phone Vern on 0274 460 165 or 0800 10 7006 or email: info@corkillsystems.co.nz

making the smaller models easily upgradeable to larger, says manufacturer Croplands.

The RetraSpray range is “built tough to suit New Zealand conditions,” the company says.

Electric powered hose retraction comes standard with all units and a range of tank sizes suit needs.

The key benefit is you can upgrade as your needs change; no need to buy a whole new spray system.

RetraSpray electric 12V powered hose reels come standard on all units, with the option of upgrading to remote control retraction for increased productivity of up to 50% via a hand held transmitter.

RetraSpray electric 12V powered hose reels can be bought separately and fitted to existing spraying systems where required.

RetraSpray units can be easily mounted on a vehicle by choosing one of two styles: either the standard top-mounted configuration (motor/pump/hose reel) that sits on top of the tank or the optional side-by-side configuration (motor/pump/hose reel) mounted on the vehicle tray beside the tank using the mounting rail kit.

Both frame options allow for easy forklift access or slip-on/slip-off loading.

Tel. 0800 106 898

Dairy News // june 14, 2011

45

machinery & products

Torque up in upgraded farm utility HIGHER TORQUE is

achieved by variable hydro transmission VHT Plus2, new in the Kubota RTV900XT farm utility.

This is the latest version of Kubota’s RTV900 workhorse. Towing and hauling is better, so is braking and gear shifting, the company says.

“The Kubota RTV900XT marks an important evolutionary step for our popular RTV900 line, says Shaun Monteith, sales manager “We grew the utility vehicle market in 2004 with the original

RTV900 and its diesel engine and hydraulic transmission combination. The RTV900XT has tangible improvements in quality, durability and performance.

“Utility vehicle owners are a diverse group, and this enhanced workhorse will satisfy their various needs.”

The RTV900XT is powered by a 21.6hp 3-cylinder, liquid-cooled Kubota diesel, has an “extra large” steel cargo bed and an optional hydraulic bed-lift system operated by a single

Effluent tanker pours it on Mid-West Machinery says its Nevada effluent tanker is ideal for New Zealand dairy farmers.

Made in Italy, the tanker comes in 4500-30,000L versions and can achieve a spray application rate as low as a traveling irrigator, resulting in more grass and deeper roots, Mid-West says.

With a 20cm suction tube on the automatic filling arm, a 10,000L tank can be filled in 2.5 minutes and emptied in 2.0 minutes.

The tankers have wide flotation tyres and the tandem axles have leaf spring suspension that Mid-West says gives a ride “so smooth the tractor driver barely feels the tanker behind”.

The tanks are galvanised inside and out and have large internal baffles to reduce surging. Steel implosion rings give extra strength.

Imported by Euromarc Industries, the importing division of Mid-West Mchinery.

Tel. 06 278 8644 clayton@midwestmachinery.co.nz

lever. Hydrostatic power steering makes for “exceptional comfort, control and manoeuvrability”. A new seat design is more comfortable.

www.kubota.co.nz

46

Dairy News // june 14, 2011

motoring

Affordable SUV serious contender CHRYSLER IN New Zealand last month launched its Jeep Patriot, promising “an affordable compact SUV with segment-leading capabilities and unsurpassed 4x4

fuel economy.

It also has new “aggressive” exterior styling, new interior features and improved ride and handling.

“Styling, fuel econo-

my and performance are exceeding our expectations,” says Todd Groves, Sime Darby Automobiles’ divisional manager for Chrysler.

Exterior styling is en-

OT60 NEW FOR 2011!

hanced for 2011 by new front and rear fascia, a body colour grille and an increased 4x4 ride height.

Ride and handling is better because of upgraded steering and suspension systems.

It’s an SUV with the performance handling, fuel economy and price of a compact car, Groves says.

Standard features such as side-curtain air bags and electronic stability offer “tremendous value within a fun and affordable package.”

Features include: Rugged styling with new front and rear fascias, grille, cladding and increased 4x4 ride height.

Segment-leading offroad capability, unsurpassed 4x4 fuel economy and interior versatility.

Updated interior with refined materials and soft touch points.

Upgraded steering and suspension improve overall ride and handling in all conditions.

The Jeep Patriot is

wheels, and a maximum tow rating of 1500kg.

Upgraded suspension has higher spring and damping rates, added rebound springs, and an increased diameter of the rear sway bar.

The Patriot Sport and Limited are available with Freedom Drive, a full-time-active 4WD system with lock mode to handle rough ground and low-traction conditions.

This system is recommended for daily use, including slick conditions

in rain and light snow.

Power comes from a standard 2.4L ‘world engine’ producing 125Kw@6000rpm and 220 Nm of torque @ 4,500 rpm. This DOHC 16V engine has dual variable valve timing (VVT) on both intake and exhaust camshafts, which helps optimise the torque curve at all speeds and produces more power, better fuel economy and smoother quieter operation than engines without dual VVT.

‘Sumptuous’ Jaguar set to wow

This is truly a 60 teat feeder with our teats spaced so 60 calves can fit in with ease, wider than the OT50 it comes with an 800 litre tank and tandem axle as standard. Simple self cleaning system the OT60 LT will save you time and money feeding calves.

JAGUAR HAS introduced upgrades across its

range of 2012 models at the New York Motor Show.

The XF sports sedan has received powertrain

AVAILABLE AT

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WHAT FARMERS ARE SAYING

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designed to appeal to compact-SUV buyers who want traditional Jeep styling with off-road capability at an affordable price.

“Simple yet distinctive geometric forms, timeless proportions and exterior design enhancements complement off-road capabilities,” says Mark Allen, head of Jeep design.

The transmission has 4x4 lock shift-on-thefly which sends 50% of torque to front and rear

“The shelter eliminates rainfall washing effluent from the feedpad and the clear Durashelter roof, keeps the floor dry and disease free” Waikato “Protects my herd from the extremes of winter and summer weather and allows me to manage feed/water uptake” Northland “The pasture on my run-off block is now usable all year round using my shelter has substantially reduced pasture damage.” Taranaki “Redpaths soft floor system is easy on the cows & effluent run-off is almost nil, I spread it onto the farm as a fertilizer rich compost, its great” Gore

updates to improve performance and economy and a new interior look and exterior design.

A new 186mph XKR-S tops the XK range and new option packs emphasise luxury and sporting personality.

And the new XJ luxury saloon now has a rear seat comfort package for a “sumptuous limousine experience”.

“The new 2012 Jaguar range is our finest yet,” says Adrian Hallmark, global brand director, Jaguar Cars.

“Every model embodies the brand ideals – innovation, bold design and effortless high performance. Our designers and engineers strive to keep Jaguar ahead of the competition.”

Substantial changes and improvements in the XF, XK and XJ ranges “bring performance, refinement and economy to new levels, while fresh design enhancements strengthen the contemporary appeal of Jaguar’s latest line-up.”

AgBrand Products

“The Stockfeeder Experts”

Manufactures and suppliers of the Original NZ made Stockfeeder Round, Oval and Rectangle feeders, plus feed fence lengths available for Cattle, Deer and Sheep. ✓ Simplify big bale feeding ✓ Stop wasting hay & silage

See us at Mystery Creek, Site D70 “Redpath’s Durashelter clear roofing membrane dries the floor and reduces disease/bacteria spread. Redpath shade-screens can be easily installed for an ideal summertime shelter” “Surprisingly cost-effective, A Redpath shelter can be constructed on farm over existing or new feedpads from $300 + gst per cow*!, includes structure, labour & permit application!” *conditions apply

FREEPHONE 0508 733 728 email redpath@redpath.co.nz www.standoffshelter.co.nz

✓ Easy to assemble, fill & move ✓ 100% NZ made

0 8 00 1 0 4 4 0 4 National Fieldays come and see us on our new Site C70 (opposite Waikato Toyota).

P O Box 5, Clevedon • agbrand@stockfeeders.co.nz • www.stockfeeders.co.nz

Calving is on the way! are you ready?

At PGG Wrightson, we’ll help you with the right range of products, competitive prices and expert advice.

Get your free Calving catalogue and checklist in-store now!

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Shoof Nitrile Milking Gloves 100 pack S-XL

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Extra long, thick or Latex gloves also available.

NZAgbiz SupaCalf™ Calf Milk Replacer 20kg

NRM® Moozlee Plus 25kg

NRM® Grow Up 20% Pellets or Nuts 25kg

NRM® Grow Up 16% Pellets or Nuts 25kg

Swanndri Egmont Polycotton Overalls

A premium calf milk replacer containing Supagest™, which maximises nutrient uptake and minimises nutritional scouring problems, and Deccox™ to aid in the prevention of coccidiosis. Suitable for calves from four days old.

A very tasty, high quality, highly digestible textured meal that contains steam flaked grains, molasses, protein meals and Bovatec® coccidiostat. Moozlee is well known as a meal that is quickly accepted by very young calves.

A top quality, high protein pelleted feed, designed to balance the nutritional needs of rapidly growing young calves that are still consuming colostrum, milk or calf milk replacer. Contains Bovatec® to prevent coccidiosis.

A top quality, high energy pelleted feed that contains moderate levels of protein for older calves through and after weaning.

Moderate protein levels are designed to balance high quality spring pasture.

Contains Bovatec® to prevent coccidiosis.

Sizes: 4 - 12 Royal blue, Forest green

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Cydectin® Pour-On 5.5L Promo Pack

Cydectin® Pour-On 2.2L Promo Pack

Skellerup Red Band Gumboots - Men’s

Levamisole and Abamectin

Moxidectin

Moxidectin

Sizes: 4 - 14

Registered pursuant to the ACVM Act 1997, No A10119

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Registered pursuant to the ACVM Act 1997, No A6203

Women’s and children’s gumboots also available.

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Terms and conditions: All offers and prices are valid from 1 June 2011 to 31 July 2011 unless stated otherwise, or while stocks last. Prices include GST, unless stated otherwise and are subject to change. Some products may not be available in all stores but may be ordered on request. Prices do not include delivery, delivery costs are additional. Images are for illustrative purposes only. *The deferred payment offer applies to PGG Wrightson account holders only. All purchases must be made on your PGG Wrightson account. PGG Wrightson’s standard terms of trade for monthly accounts apply – see www.pggwrightson.co.nz/OurCompany/Trade. Your PGG Wrightson account must be paid up to date to qualify. Purchase participating products between 1 June 2011 and 31 July 2011 and pay in full by 20 October 2011, interest-free. This offer may be withdrawn or amended at any time.

Customers who take up the deferred payment offer must purchase participating calving products with a minimum spend of $1,000 per transaction to qualify. Deferral on participating calf feed products applies only when product is ordered and delivered in the same month.