Dairy News 6 December 2011

National’s win puts TAF on track for 2012 launch. Page 3

Tagging along with NAIT Split levy proposed Page 15

inspiration for dairy women New board member Page 24

december 6, 2011 Issue 260 // www.dairynews.co.nz

naki’s brightest spark New Fonterra director David MacLeod interview .

PAGE 5

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Dairy News december 6, 2011

news // 3 News

National’s win brings TAF closer to fruition sudesh kissun

Dairy shed water limits loom. PG.7

Pasture quality takes a hit as dry sets in.

PG.9

THE RE-ELECTION of a Nationalled Government has boosted Fonterra’s chances of sewing up the TAF (trading among farmers) proposal by the end of next year.

Fonterra chairman Henry van der Heyden hopes to “push the button” on TAF before he steps down at the 2012 annual meeting in November.

“Capital structure and developing TAF will be one of my last acts before I leave,” he told Dairy News.

He points out TAF has been a long process. Farmers voted overwhelmingly to move from share redemption to TAF to bolster the co-op’s balance sheet. TAF requires a review of the Dairy Industry Restructuring Act by Parliament.

Van der Heyden and the Fonterra board had initially hoped to launch TAF this year. But uncertainty among farmers and the previous Government’s preoccupation with the Christchurch earthquake

Fonterra chairman Henry van der Heyden with chief executive Theo Spierings.

recovery prevented the legislation from reaching Parliament. Several inquiries over milk pricing also compounded the situation.

Van der Heyden agrees TAF could never go ahead with “milk price questions hanging over us.”

“Now the new Government is confirmed and all milk inquiries have been dealt with, we have clean air to move on with TAF,” he says.

Fonterra had been briefing Prime Minister John Key, Finance Minister Bill English and Agriculture Minister David Carter in the previous Government. With Key and English back at the helm, and Carter almost certain to continue in his old job, progressing TAF will be easier.

Van der Heyden says it had also briefed other political parties and TAF would still have been achievable

if Labour had won power.

On farmer concerns about TAF, particularly relinquishing share titles to a custodian, van der Heyden point out it has “quite a big mandate” from farmers to proceed with TAF. However, new chief executive Theo Spierings also announced at Fonterra’s recent annual meeting that management is looking at the possibility of farmers owning legal titles to shares held in the proposed Fonterra Shareholders Fund.

“We are listening to farmer concerns and we will brief them before Christmas as Theo told the meeting,” says van der Heyden.

Fonterra expects the new Government to release a discussion document on changes to DIRA early next year. A round of shareholder meetings is also being planned in early 2012.

Van der Heyden says his decision to stand down has nothing to do with farmer concerns on TAF. Success planning has been underway by the board for the last two years.

Co-op lowers boom on fences

Good soil health leads to good grass.

PG.29

News ������������������������������������������������������ 3-21 Opinion ���������������������������������������������22-23 Agribusiness ����������������������������������� 26 Management ������������������������������29-34 Animal Health ������������������������� 36-40 machinery & products ��������������������������������������� 41-42 tractors & machinery ������������������������������������43-45

FONTERRA HAS given its suppli-

ers two years to fence all farm waterways, the dictate of a new clause in its supply agreement. Farmers must comply at most 18 months from the start of the 2012-13 season.

The move is to protect water quality in dairying regions.

Fonterra general manager milk supply Steve Murphy says since signing the Clean Streams Accord eight

years ago, the cooperative has made measurable progress on protecting waterways.

“In addition, our Every Farm Every Year programme introduced last year has achieved improvements in effluent compliance.

“We are heading in the right direction and are now taking the next step by introducing a clause [to require all] 10,500 suppliers to fence all

Accord waterways on their farms.

“Fonterra is committed to doing its bit to look after our environment.

Ensuring stock stay out of lakes, rivers and streams is fundamental to maintaining water quality and this clause sets a clear Fonterra standard for all our farmers.”

A lot of good work has been done with the cooperative’s farmers voluntarily fencing all waterways on

their properties, Murphy says. Now is the time to set a cooperative, wide standard that ensures those lagging behind do what’s expected. While many farmers already exclude 100% of stock, others must do more to fully comply.

“The co-op is going to work with those that need to catch up by putting environmental improvement plans in place.”

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Dairy News december 6, 2011

4 // news

Westland forecast payout stays

in brief Ahuwhenua Trophy up for grabs again

ANDREW SWALLOW

HOKITIKA CO-OP THE CHAIRMAN of the Ahuwhenua Trust, Kingi Smiler, says there’s been a lift in the performance of Maori farms which he attributes to the Ahuwhenua Trophy competition.

This contest runs annually, designed to show excellence in Maori farming. It features dairy and sheep and beefs farms alternate years. Next year it’s the turn of dairy farms.

Smiler says the winners of the trophy compare well with the best in the entire agriculture sector. He says Maori dairy farming operations are generally larger than most family farms – in some cases ten times the size of the average farm Smiler says the Ahuwhenua Trophy allows Maori farms to benchmark themselves against others, to the benefit of Maori agriculture.

“One of the biggest factors is to show shareholders in Maori trusts and incorporations how well they are doing and give them a sense of pride in seeing their farms doing well in a national competition.”

Though senior people in agriculture and some top farming enterprises recognise the contribution Maori are making, by and large their achievement fly under the radar of most farmers, he says.

Entries close on January 27 and the winner will be announced at a gala dinner in Auckland in June.

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Westland Milk Products has reiterated its $6.60$7/kgMS forecast for 201112.

The announcement, made last week at its annual meeting in Shantytown, contrasts with Fonterra’s late October 45c/kgMS cut to its opening forecast of $7.15-7.25/ kgMS including dividends.

Fonterra blamed softer commodity prices and a stronger New Zealand dollar.

At Westland’s meeting chief executive Rod Quin said the new reverse osmosis plant at Rolleston, Canterbury, and dryer modifications at Hokitika will generate an extra 10-15c/kgMS for shareholders this season.

Further dryer modifications at Hokitika and

batch blending equipment – stage two in the firm’s strategic development programme – should be commissioned for the start of the 2012-13 season.

“This plant will develop our capability to deliver beyond the seven thousand tonnes of Growing Up Milk Powder (GUMP) we manufacture today,” says Quin.

Stage three, involving further investment in Westland’s nutritional product capability, is still in the planning phase.

Quin has previously acknowledged a processing plant at Rolleston is being considered.

Westland chairman Matt O’Regan told the meeting 2010-11 was a season of “difficult climatic conditions.”

However, use of DIRA milk for the first time, and processing milk for other

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Sales volume increased from 78,000t to 90,000t, which, with increased prices, took revenue to a record $525m.

“Our customers appreciated the additional volumes produced and our ability to keep pace with their growth rates.... West-

expected to attempt to enter the industry. Meanwhile he points to changes in Europe influencing international markets.

“We know agricultural policy in Europe has undergone reform. A key result is the removal of country specific milk quotas in 2015. As a consequence we can expect a huge surge in milk which is likely to end up as skim milk powder and butter produced for the international markets.”

Prices could suffer and action between now and 2015 to shift dependence on these products “will be the key to providing sustainable competitive payouts,” he says.

Shareholders can take comfort in a positive longterm outlook for dairy and demand for innovative products continues to match population growth, O’Regan adds.

Helou. “Offering lactose on GDT will further develop the market for this product and has the potential to reduce volatility and provide more reliable price discovery for buyers and sellers. Accordingly we are confident MG’s involvement will provide benefits to MG shareholders and customers.”

Lactose demand is being driven by use in infant formula and other nutritionals.

A spokesman for MG told Dairy News it represents “a toe in the water” on GDT for MG. It has no

plans to add other commodities.

“We’ll see how this goes first.”

GDT general manager Paul Grave says MG’s participation is “a further significant step for GDT” and “demonstrates GDT’s increasing role as a key platform for international trade in a broad range of dairy commodities.”

Lactose is not currently offered by existing sellers Fonterra and Dairy America.

“We are delighted that a company of MG’s standing and importance in world dairy markets has

decided to participate in GDT and play a part in shaping its future,” adds Grave.

GlobalDairyTrade sales to date total at least $US5 billion: about 700,000t/year the current volume, with about 500 qualified bidders from at least 80 countries.

MG processes about a third of Australia’s milk, taking in about 2.9 billion L/year from 2500 supplier shareholders. It has strong presence in the Australian domestic market with sales of $A1.12m last year.

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land is now working with selected customers to deliver the highest returns from a product portfolio which is changing to a range of nutritional products with higher margins,” said O’Regan.

Speaking to Dairy News after the meeting, O’Regan said a good start to this season had kicked supply at least 10% ahead of last year but a wet November on the Coast reduced feed quality and production. “Now we’re 6-7% ahead.”

Westland is again taking its full allocation of DIRA milk, and so far has four farms supplying it from Canterbury. Fonterra has been scoping the possibility of recruiting supply from the West Coast.

O’Regan says the dairy landscape continues to evolve, with new dairy processors and more

MG joins Fonterra’s online auction

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Dairy News december 6, 2011

news // 5

Naki’s brightest spark PETER BURKE

FONTERRA’S NEW

director David MacLeod, South Taranaki, has been wired into the dairy industry for over two decades.

When he left school he took up an apprenticeship as an electrician and much of his work as a tradesman involved wiring dairy sheds and electrical contracting work in dairy factories around South Taranaki.

But as well, MacLeod comes from a dairy farming family and is now involved in helping to manage Fonterra’s largest single milk supplier in the region – Parininihi Ki Waitotara – a large Maori incorporation. To top it off he’s also the chairman of the Taranaki Regional Council (TRC) and a director of Port Taranaki.

MacLeod’s background is unusual in that he’s seen the dairy industry from many perspectives and is a highly successful businessman and professional director.

“I established a huge amount of understanding about the process side of things in those early days working as an electrician on farms and at some of the big dairy factories such as Kiwi in Hawera.

“At about the same time I gained an insight into the governance of the dairy industry. I knew the chairman of Kiwi Dairy at the time. That’s when I got my appetite for governance – looking at those guys and thinking, gee wouldn’t it be wonderful to be at the decision making table of a

great company like Kiwi.

You could say I started in the boardroom of the dairy industry at a young age when I was replacing lamps and fixing air conditioning and that sort of stuff.”

Dairying is in MacLeod’s DNA and he has a passion for it and everything else he’s ever done. His extended family have been dairy farmers in the Manaia area of Taranaki for at least 130 years. He was raised on the dairy farm his folks have owned since 1904 and which his brother still farms.

When MacLeod left school he took his father’s advice to learn a trade then perhaps return one day to the farm. At age 23 he had opportunity to buy a share in the electrical company he was working for – Greaves Electrical.

That effectively ruled out returning to the farm, confirmed in 1999 when he bought the remainder of the business.

The company now has about 80 staff and is the largest in South Taranaki, with dairying is main customer. It handles a full spectrum of electrical work – lights and plugs, domestic installations, high voltage transformers and power poles in subdivisions.

With his company doing well, MacLeod looked for another challenge, finding it in local government when the TRC chairman died suddenly in 2000. MacLeod won the by-election and is now in his fifth term on the TRC and second term as chairman.

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“At that stage I was truly at a decision making table…. A year later I was elected to go onto the Port Taranaki board and that’s when my corporate governance skills really started to develop, ” he says.

MacLeod admits his background as a Fonterra director is unusual and believes it helped him get elected. “I have a thorough understanding of environmental sustainability issues and a good understanding of how to reach goals in society by getting a wide variety of interests around a table to discuss these matters. I can be at a table with Fish and Game, Forest and Bird, Federated Farmers and Fonterra

by convincing environmentalists that only when dairy farmers are profitable can they deal effectively with environmental matters. Farmers also want a good environment; pragmatism is needed for good outcomes.

Nationally, environmental sustainability is the number one issue, MacLeod says. “It’s our license to operate. Environmental performance is our greatest risk.”

While campaigning for the Fonterra directorship MacLeod toured the country gaining insights into regions. He picked up farmers’ frustration with regional councils. He finds farmers willing to do

Fonterra’s new director David MacLeod.

everyone has to lift their game. We are not perfect in Taranaki and we have issues to deal with

the ‘tall poppy syndrome’.

The notion all dairy farmers are mega-rich is a load of bollocks. Fonterra must

Farmers too must connect better with their communities and show the gap between urban

Family connection with dairying THOUGH HIS personal business interests are not directly in dairy farming, David MacLeod’s links to the land couldn’t be closer.

He’s on the management committee of Parininihi ki Waitotara (PKW) with 8500 beneficiaries or shareholders.

Parininihi is the name of the white cliffs in North Taranaki; Waitotara is the township in the south so the name defines the Taranaki boundary. PKW was set up in the mid 1970s to administer a large chunk of Maori land in Taranaki.

Macleod’s particular role in the trust is as a director of PKW Farms (13 dairy farms and two support blocks). About 7000 cows are run on 2160ha, producing 2.3 million kgMS/year, making PKW Fonterra’s single biggest milk supplier in Taranaki. All the farms have 60 bail rotary sheds capable of milking 500 cows an hour.

and get them to reach common ground.”

Macleod admits the challenge in balancing economic and environmental matters, achievable

David MacLeod with PKW sharemilker Robert van der Frits.

MacLeod has been a management committee member and a director for just over a year. He takes a great personal interest in the farms. Two are managed, two have lower order sharemilkers and the rest are covered by 50/50

a good job in the environment, but grumpy about councils’ inconsistency and rule changes.

“Regional councils must do a good job;

in certain areas. But not by going out there like a big bad cop and punishing everybody.”

MacLeod concedes the dairy industry suffers from

agreements. Though only recently involved in PKW management, he has been a trust beneficiary a long time.

“My mother has always been a shareholder of PKW so I’ve been observing.

My mother and father were keen for me to take an interest in what PKW was doing and they spoke to me prior to me putting my hat in the ring. It’s an elected position and you have to get voted onto the board.”

PKW gave Macleod an excellent launching pad for his Fonterra directorship. Maori incorporations such as PKW, and others in the North Island, are major players in the dairy industry.

PKW has good farming credentials. In 2006, it won the prestigious Ahuwhenua Trophy for Maori Dairy Farming Excellence. It plans to convert more of its land to dairy farms and prides itself in its commitment to environmental issues.

continue telling New Zealand society that at least 50 % of the revenue going into a dairy farming business is returned to the community.

and rural is not as wide as it may appear. “Dairy farmers need to partake in society to close those gaps and I know a lot of farmers already doing that.”

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Dairy News december 6, 2011

news // 7

Water restrictions loom ABOUT 3500 Waikato farmers will soon require resource consent to take extra water for dairy shed use.

A recent Environment Court ruling has paved the way for the Waikato Regional Council to implement its Variation 6 to the Waikato Regional Plan. This allows the council to progressively introduce new policies and rules for allocating and using water in the region. Developed in response to growing demand for water from various sectors, it sets allocation limits for all rivers and streams, and their minimum flows.

After agreements with the agricultural sector, dairy farms will be allowed to take 15m3/ day/certificate of title for dairy shed use. Takes above this will require a resource consent.

The resource consenting process will be staged over the next few years.

Farmers will have till January 1, 2015 at the latest to apply for consents. The council estimates 3500 farmers will need consent.

WRC catchment management programme manager David Speirs says confirmation of the final shape of Variation 6 means the council can now get on with

implementing the policies and rules.

“Now we have the court decision, we plan a resource consent implementation strategy with agriculture industry stakeholders. We will tell farmers the details of when they need to apply for resource consent to take more than 15m3/day.”

Existing ‘extra’ takes above 15m3/day will generally be ‘grandparented’ as at October 2008 levels, Speirs says. Under this provision of Variation 6, farmers will generally get the grandparented ‘extra’ amount requested provided they apply for a consent and meet the conditions, including riparian management plans to prevent sediment, effluent and nutrients from getting into waterways.

The court has also allowed for more water takes between Taupo and Karapiro than were originally proposed.

Variation 6’s requirements will complement a broader regional strategy now being developed, aimed at better protecting Waikato waterways.

Surface water demand in Waikato is 1.36 million m3/day; ground water demand is 430,000m3/day. All water flowing to the sea from the Waikato River is said to have been removed from

Additional water usage in Waikato dairy sheds will soon require consent.

the natural river channel and used at least seven times before it reaches the ocean.

Pressure on water resources has increased markedly in recent years, says Spiers.

“For example, the area of land being

irrigated has nearly doubled in the last ten years. Water is a finite resource and, in some places, is already fully allocated.

Variation 6 seeks to strike a balance between managing the adverse environmental effects of taking and using water and [allowing people] to use water in an

environmentally sustainable way.”

The new rules are to ensure enough water remains in waterways to protect aquatic life and provide for recreation, and to meet domestic, municipal, agricultural and industrial needs as far as possible, Spiers says.

A new approach for Hawke’s Bay VIVIENNE HALDANE

A NEW land and water management strategy for Hawke’s Bay was unveiled last week at a symposium at Napier. The strategy developed out of a regional water symposium the regional council held in November last year.

Working through the dialogue and getting concensus was “a challenge,” says Helen Codlin, manager strategic development, Hawke’s Bay Regional Council.

“But that was the only

way forward. The document was created by 23 people representing various business and primary sector groups, plus local and government authorities. It is important to understand the strategy is not the end of the conversation, it is just the start.

“The MAF Acceleration Fund recognises smart irrigation infrastructure will increase New Zealand’s economic prosperity but it says any successful project must demonstrate and be committed to good industry practice that promotes

Helen Codlin

efficient use of sustainable land management.”

Councils will use the resource planning and ini-

tiatives; so will farmers, growers, fishermen and environmentalists.

Graham Sevicke-Jones, manager environmental science, HBRC, says different systems needed to be managed in different ways.

“Our region has sheep and beef and dairying, DOC, forestry and cropping and orchards.”

Sheep and beef farms still dominate the region.

Dairy farms are mostly concentrated in Central Hawke’s Bay but dairying was minor here compared to the Waikato or Southland.

L I M I T E D

“There will be implications for any intensification of farming and the challenge is to manage that within the landscape to achieve an objective.

Each catchment in the community will have certain values associated with it,” says Sevicke-Jones.

Central Hawke’s Bay farmer Hugh Ritchie, member of the reference group, says, “This and the land-water forum are great examples of how, if you front-row the system and have discussions, you work the issues through before you put a plan in

place. Consequently I think we’ll have a more enduring plan.

“We learned that everyone has to make some moves, including agriculture. How we allocate water limits and what that means for farming is going to be a big pill to swallow. But at least having a process that identifies the catchment limits is logical and sensible.

Whether it’s cropping or dairying, it comes back to managing the land within the sustainable limits of that environment and the catchment,” he says.

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Dairy News december 6, 2011

8 // news

Dairy prices tipped to swing SUDESH KISSUN

DAIRY PRICES will

continue to fluctuate as economic uncertainty grips the EU and the US, says Fonterra chairman Henry van der Heyden.

“I think we will see prices up and down, there is no trend emerging,” he told Dairy News.

He says there is more milk in the market and demand remains strong.

But the situation remains volatile. While not as bad as the global economic crisis of 2008, things

remain uncertain.

Last week, an economist warned slow global growth could harm the export sector. New Zealand Institute for Economic Research principal economist Shamubeel Eaqub says the fall-out from the European sovereign debt mess will depress export growth.

It will weigh on exports and tourism, which had been a buffer. Investment will remain depressed because banks will find it harder to raise capital overseas.

“New Zealand’s fledg-

ling recovery will be severely hampered by the rapidly worsening global economy,” Eaqub says. “If the Euro area splits, New Zealand firms should prepare for another global crisis. This would restrict access to capital and push up global borrowing costs, in addition to an even weaker export outlook.

New Zealand would likely experience another recession and the Reserve Bank would need to cut interest rates. We place the odds of such a scenario at about 25%”, says Eaqub.

He also believes inter-

est rate rises are off the table until mid-2013.

“Faced with the darkening global outlook and weak domestic activity, the Reserve Bank will not raise the official cash rate (OCR) until mid-2013.

“Inflation will be contained as excess labour market capacity keeps a lid on wage growth and firms hold prices low to remain competitive. If the global situation worsens, the RBNZ will have to cut the OCR.” But the ASB says despite the economic uncertainty, New Zea-

land’s is in a good space.

“New Zealand’s agricultural sector is enjoying some of the best conditions for many years.” The bank expects the 201112 dairy payout to be the third highest on record.

In October Fonterra dropped its milk payout forecast for the 201112 season by 45c, blaming a continued softness in commodity prices and a stronger New Zealand dollar. It announced a revised payout forecast of $6.70-$6.80/kgMS, comprising a lower farmgate milk price of $6.30/kgMS,

The fall-out from the EU debt crisis is expected to affect New Zealand exports.

down from $6.75. The season’s distributable profit range forecast of 40c50c per share remained unchanged.

Fonterra’s 2010-11 payout of $8.25/kgMS before retentions is the highest in the co-op’s 10-year history.

Worry clouds gather in Taranaki PETER BURKE

DULL WEATHER is challenging dairy

“Lots of miserable days, but not a lot of rain.” their peak production.”

Bishell says cow condition in the region is looking pretty good because the animals are being well fed. Most are putting on condition. “Most farmers we’ve been around in discussion groups say their cows are in good condition for this time of the year. A lot of herds will be sitting at between condition score 4.0 and 4.3,” she says.

Mating is going well with cows in good condition from last year. She says the cows appear to be holding well to AB and the non-return rates are quite high.

Bishell notices a slight reduction in herd sizes. Farmers are starting to drop their stocking rates and are feeding their cows better, she says. “Cows are genetically superior and to reach their potential they really need more feed to get there,” she says.

Coming into summer, Bishell says farmers should start pushing their rotation out – especially those coastal and mid-altitude farmers.

She says they should be getting close to a 30 day round and should also be thinking of putting on some urea to try and get some leaf into pasture which is starting to go to stalk. But she says this should not be done if it means not pinch feeding cows.

No.1 on the

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farmers in Taranaki. A lack of rain and sunshine is a concern, says DairyNZ consulting officer Jo Bishell.

It’s starting to dry out quite a bit in the region, prompting most farmers to say this is the lowest November rainfall for years. The region needs a dump of rain to get moisture levels up, she says.

“We’ve had frequent rain, but we haven’t had a lot of it, especially in the coastal areas. The guys there have complained about the lack of rain, more so than those inland and higher up. Lots of miserable days, but not a lot of rain.”

Despite the lack of rain, Bishell says there’s plenty of grass around, but pasture quality is the issue at the moment.

“With the good growth we’ve had and

the weather not playing ball, it’s been difficult to get silage off. Also with the pasture quality going down, obviously milk solids have gone down and we are finding most farmers are 20% to 25% off

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Dairy News december 6, 2011

news // 9

Poor pasture cover threatens cow condition on some farms PETER BURKE

LOWER NORTH Island

farmers are struggling to find pasture to maintain their cows’ condition.

Tim Scotland, Southern Rangitikei Veterinary Services (SRVS) blames this on poor weather, pasture quality going off and getting stalky. He says those farmers trying to do an all grass system are struggling to get enough feed into their cows and these physically can’t eat enough to meet requirements.

Scotland says in the past month he’s had calls from farmers saying cows

were ‘crashing’ and what should they do. “They should be giving them as much grass as possible and adding in whatever supplements they have and try and keep up the feed

others are using maize silage or whatever supplements they have including meal. Topping paddocks will help improve pasture quality, but a lot of farmers haven’t been able to get

Farmers trying to do an all grass system are struggling to get enough feed into their cows. intakes. We know some farmers are running out of supplements, a problem for some,” he says.

Many farmers are using PKE because it’s readily available;

out and do this because of sodden pastures. Farmers have also had problems getting in crops such as maize silage because of the wet ground.

Meanwhile the head of pasture science at Massey University, Professor Peter Kemp, says ryegrass

is starting to mature and unless it’s grazed hard, the quality starts to drop away.

He says farmers should be looking closely at their pastures to see what can be turned into silage.

Feeding supplements may also be necessary.

Kemp says the rain may have caused a nitrogen deficiency in their soil and they should look at the option of applying urea, although there will be a lag before this takes effect.

“These conditions, especially the waterlogging on heavier soils, depletes oxygen in the soil. Roots don’t grow as well, so the plant doesn’t grow as well and you particularly notice that when you get more tap rooted plants or crops. The waterlogged conditions affect root growth.

Pasture quality is going off in some areas.

“Also, wet soil is colder so the temperature drops a bit which slows the growth at this time of the year.” But on freer draining soils, plants are grow-

ing better, he says.

According to Kemp, cloudiness or lack of sunlight can limit pasture growth. “Typically on a on a nice sunny day the sugar

levels in plants increase as they photosynthesise through the day, but when it’s cloudy the plant is struggling more to grow,” he says.

Waikato looking dry A LACK of rain in Waikato is starting to cause problems, says DairyNZ scientist Dave Clark. He says the region has had only 35mm of rain in November and the prospects of more in the immediate future is limited.

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He says he heard stories of farmer making silage two weeks ago and feeding it out now.

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growth rates. “Because of the higher temperatures we’ve had, that’s affected the metabolisable energy of the leaf and stem. So cows are getting hit by a double wammy: there’s not enough grass there and the grass that is there is of too low quality,” he says.

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Dairy News december 6, 2011

10 // news

Synlait’s Chinese link paying off tony benny

CANTERBURY DAIRY

processor Synlait Milk has opened a $100 million baby formula plant and any day soon its Pure Canterbury cans will appear on supermarket shelves in Shanghai – not bad for a company that a couple of years ago couldn’t raise the capital needed for expansion.

There’s already 200 tonnes of the new formula in China awaiting the product launch. The cans will retail for $80 each.

Synlait’s first infant formula customer is Chinese company Bright Dairies,

also a 51% shareholder in Synlait. Bright acquired its stake after Synlait’s efforts to attract local investors and a New Zealand sharemarket float flopped.

“Things have a way of working themselves out don’t they,” says Synlait Milk chief executive John Penno. “We turned away from the New Zealand

market when it became clear they were significantly underpricing the company.

“We’d been in the market for a trade part-

Milking the value chain THE NEW factory will produce $1 million of product every 24 hours.

It will consume 500m L of milk a year – 110 tankerloads a day.

John Penno says the move from commodities to higher value products is significant for Synlait.

“We’re starting to earn more from the same inputs, from the same farms, the same fertiliser, the same labour

and it’s important for us to do that.

“We’re aiming to put as much as we can into finished cans because we can capture the most value for ourselves and for the country the further along the value chain we get.

“For us the strategy is about building volumes of this product because it’s so much more valuable than the other products we can make.”

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“We turned away from the New Zealand market when it became clear listing the company wasn’t the right thing to do.” – John Penno ner earlier but the global financial crisis completely dried up any deals for a period and by the time it became clear listing the company wasn’t the right thing to do, that market was springing up again.

“We found our current partner Bright Dairy who as it happened were in the market looking for a company who were going to make infant formula.”

The new Dunsandel factory is the largest infant formula plant in the southern hemisphere and Penno says it’s the most sophisticated. “It’s a state-of-theart, world class plant that is getting the engagement of some of the best customers around the world,” he says.

Penno says the development is driven by surging world demand for infant formula and that New Zealand is increasingly being recognised as

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Synlait general manager Neil Betteridge

a source of quality dairy products.

“The plant we’ve built is large and it will be supplying lots of different customers; we would expect to be supplying up to ten customers in five countries within 12 months.

Bright is one of our customers but they’ll be one of many.”

The Pure Canterbury brand is owned by Bright and the cans feature green dairy pastures and a snow capped Southern Alps backdrop. “Actually the Chinese [wording] under Pure Canterbury is all about raising your family, investing in your family and the return you’ll get from that if you do it well,” Penno says.

Twenty eight new staff have been employed to run the plant which general manager Neil Betteridge says has hygiene standards the equivalent

of an operating theatre.

“We do treat it like a surgery,” he says. “From the moment the milk leaves the farm doesn’t touch a human hand. The New Zealand dairy industry is highly automated so it goes from the chilled tanker through processing... even sampling is automatic, packing’s automatic, so the powder and nutritional products are in their premium form when they get to the customer.

“The mix kitchen end we think is world leading,” says Betteridge. “We’re mixing up batches to the customers’ specification for their cans so every can has to be consistent and identical.

“It’s paramount we get it correct every time so we’ve invested a lot of money in automation and checking all those compositional systems are accurate.”

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Dairy News december 6, 2011

news // 13

SIDE pushed north by snow THE SOUTH Island Dairy Event (SIDE) is going to Otago for the first time in its 14-year history.

SIDE chairman and Southland farmer David Holdaway says the annual event, which normally alternates between Canterbury and Southland each June, was scheduled for Stadium Southland in 2012.

“But the rebuild of Stadium Southland following snow damage in 2010 is

taking longer than anticipated and we decided to shift the event to the University of Otago, Dunedin. This is a great opportunity for SIDE in the Otago region and makes it easy for local dairy farmers to experience the three day event without travelling to Canterbury or Southland,” says Holdaway.

The theme for the 2012 event is ‘People, perception, pride’. Milton dairy farmer Brangka Munan is leading

the event committee for 2012 and says these recurring themes kept cropping up as the committee brainstormed the workshops programme.

“People are such an important part of the dairy industry. Ask any dairy farmer what the toughest part of the business is to get right and the answer most times will be ‘managing people’. Cows and grass is the easy part,” says Munan.

“And perception: is dairying the job

of last resort or the preferred career choice for our young school leavers?

Perception really is reality and as dairy farmers we need to understand what practical things we can do to address the sometimes less-than-positive perceptions of dairying in the wider community.”

He says the third aspect of the theme – pride – is something dairy farmers feel is in short supply in dairying today.

“Maybe it’s just a part of the Kiwi psyche, but we’re not good at broadcasting our successes. Dairying is a Kiwi success story but it seems if it doesn’t involve a ball of some sort, we don’t like making a big deal about it. We need to tell our fellow New Zealanders about our All Blacks in gumboots!”

SIDE 2012 will be held in the St David Complex, Otago University, Dunedin, June 25 – 27.

Animal welfare review set for 2012 A MAF-LED animal wel-

fare review goes out for public scrutiny early next year, after which a final strategy and proposal for law changes will go to the Minister of Agriculture.

MAF policy manager

Colin Holden

Colin Holden says while New Zealand’s animal welfare system is among the best in the world, the boundary between acceptable and unacceptable treatment of animals is always evolving.

The strategy will help ensure New Zealand’s animal welfare system can respond to these changing expectations and endure long term, he says.

“This strategy development is also an opportunity to strengthen and formalise animal welfare systems already in place, look at the roles and responsibilities of Government and other organisations with animal welfare

Advisory group MAF’S STRATEGY and law amendment advisory group has been busy since July 2011.

Key partners and stakeholders in animal welfare in New Zealand are also being contacted for their views about the system and its gaps.

In the group are people with a range of animal welfare perspectives, including on farm; processing; consumer; science; veterinarian; animal advocacy; and marketing and trade.

interests, and develop a shared ‘NZ Inc’ view of animal welfare across all sectors, organisations and people.”

The public and animal health and welfare organisations – such as vets, animal industry groups, and advocacy groups – will be heard on the development of the strategy and the Act review.

Holden says recommendations to the Government will reflect the views of the public and an advisory group drawn from key animal welfare organisations.

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Dairy News december 6, 2011

news // 15

NAIT split levy ‘a good compromise’ ANDREW SWALLOW

NAIT’S PROPOSED

split levy on tags and slaughter is probably the best compromise for the dairy sector, says Federated Farmers.

The industry-owned company responsible for setting up the National Animal Identification and Tracing (NAIT) scheme last week released a consultation document on how it intends to recover the anticipated $8.6m initial cost of operating the scheme. $1.6m will come from the Crown but the balance will be recouped by levy – 53.5% from dairy, 44.5% from beef, and 2% from deer.

The consultation document (see www.NAIT. co.nz) says these ratios have been discussed with industry leaders and “reflect the best understanding of the relative benefits and risks that each of the sectors

receives from the NAIT scheme.”

Feds dairy chairperson Willy Leferink, Ashburton, says it remains to be seen what the benefits of the scheme will be. “Personally I think it is more of a marketing advantage, and it might lead to some production increases for some people. We’ve had electronic animal identification on farm for 10 years and it’s been a huge benefit.”

As for the split between beef, dairy and deer, he says “it’s never fair but we’ve had a good look and it’s probably as fair to dairy farmers as it can be.”

NAIT’s proposal is an initial levy of $1.10/tag and $1.35/animal slaughtered in 2012-13, rising to $1.30/ tag and $2.15/animal by 2014-15. A maximum total levy ceiling of $3.60 is suggested.

Subject to the NAIT Bill, expected to be passed in Parliament early next year, all animals leaving a farm from July 1,

2012, must have a NAITapproved RFID tag and all farms grazing cattle must be registered.

For dairy farmers grazing cattle on arable prop-

erties over the winter that means their grazier needs to be registered with NAIT, and the movement on and off the farms will need recording, points

out Leferink.

“We went through the exercise last year and found it was no bad thing.

We found some culls that were still there!”

NAIT has released a new discussion document on industry funding.

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Jersey New Zealand president Brian Carter (left) presents the award to Bill Montgomerie.

Jersey honour JERSEY BREEDERS are recognising animal evaluation expert Bill Montgomerie’s service to the industry.

Jersey New Zealand last month made him a life member and presented him with a special award.

Montgomerie has for 10 years been DairyNZ’s animal evaluation unit manager. He is also well-known nationally and internationally and considered an expert in animal evaluation.

In February 2011, Montgomerie was a guest speaker at the 19th World Jersey Conference hosted in New Zealand, speaking about milk production and jerseys. The presentation is used by Jersey Associations around the world in education programmes.

Jersey New Zealand president Brian Carter acknowledged Montgomerie’s 15-year role in herd improvement in New Zealand, saying his role in educating a wider audience has had lasting effects on the industry.

KingSt10758_DN_B

Dairy News december 6, 2011

16 // news

AFL, agents launch livestock venture sudesh kissun

LIVESTOCK AGENTS

are lending a hand to resurrect Allied Farmers Ltd. Backed by ANZ National Bank, a joint venture was launched last week between AFL and its livestock agents. The new company, New Zealand Farmers Livestock Ltd (NZFL) will be 70% owned by AFL and 30% by agents.

It will trade in all livestock including the bobby calves, as previously traded by AFL. It also plans to grow the online sales platform MyLivestock. Allied’s interests in its saleyards will not be transferred to NZFL, which will provide clearing and administrative services to AFL for livestock sales transactions at those saleyards.

NZFLA’s newly

appointed general manager livestock Bill Sweeney says it will be a business “that works with farmers, for farmers.”

“We hope farmers will support this opportunity to build a New Zealand business that will be reinvesting here and totally committed to ensuring New Zealand farmers’ success.”

AFL chairman Garry Bluett says the agents’ investment in the livestock business reflects their loyalty and the confidence the board and the agents have in the future of the livestock business.

“This will bring renewed focus on the needs of livestock clients, and a stable financial and business platform for the growth and development of our service to farmers”.

A new banking arrangement with ANZ/National Bank will provide a solid

financial footing for the livestock business, he says.

As part of these new standalone arrangements, NZFL’s assets and trading accounts will be excluded from AFL’s existing security arrangements with AFL’s secured lender, Allied Nationwide Finance, which is in receivership.

AFL will use the majority of the proceeds it receives from the transfer of assets into NZFL to reduce its secured loan from Allied Nationwide Finance.

AFL Rural chief executive Steve Morrison notes NZFL will be the country’s largest 100% local-owned livestock agency.

“It will operate with significant agent ownership, with its existing livestock staff and management, and under the governance of a board bringing a wealth of farm-

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Allied Farmers’ joint venture with livestock agents will develop it’s online trade.

Director re-elected ALIED FARMERS shareholders have re-elected director Andrew McDouall, whose advisory firm helped broker its acquisition of the Hanover and United loan books. At Allied’s annual meeting last week McDouall won the support of 73.5% of shareholders who voted.

The acquisition of the Hanover and United financial assets proved disastrous for Allied, which was forced to slash the value of the loans, paid for by issuing new Allied shares, from their initial valuation of $394 million.

McDouall is an independent director.

ing, livestock and related business experience.

“NZFL will focus on maximising client outcomes and on improving livestock marketing systems and options.... This

foundation, with farmer support, can continue and grow our contribution to farmers, and continue to improve farmer outcomes with the help of the NZwide network of similarly

focused livestock agents NZFL will work with.”

The parties are finalising the JV paperwork, and the market will be informed as documentation and

settlement is completed, AFL has told the Stock Exchange.

Allied Farmers heavy losses contributed to a decision this year to sell its merchandise stores. It reported a $41 million loss in the year ending June 30 2011, a $78m loss in the year to June 30 2010 and a $35m loss in the year ending June 30 2009.

Last month shares in the listed company were consolidated 1-100 bringing the total number of shares on issue to 90.8 million.

Farm training for rookies A NEW agricultural training partnership begins next year in Northland to train people in general farm skills.

Launched by Taratahi Agriculture Training Centre and NorthTec, the course has already accepted the first student for full-time study.

This will include the Level 3 National Certificate in Farming Skills (Work Ready) and General Farm Skills Certificate.

NorthTec chief executive Paul Binney says accepting the first enrolment was exciting. “We are busy assessing appli-

cations from students in Northland who want a career in agriculture. We have had a

Paul Binney, chief executive NorthTec, and Donovan Wearing, chief executive Taratahi Agricultural Training Centre, shake on the partnership, which will see agricultural training for students in Northland for 2012.

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skilled graduates with the right aptitude and attitude are vital to farming in the region.”

Taratahi, a Wairarapa farming education provider, has campuses in Taranaki and Hawke’s Bay. It promises ‘real training on real farms’.

Students can now apply for a place on one of two Level 3 courses starting in January and through the year. The full-time course, in Whangarei during 2012, will teach students about sheep, cattle or dairy farming.

Students will graduate with the skills needed for their first job. The General Farm Skills Certificate will provide those without any previous farm experience, or those seeking formal qualifications, an extensive range of options including health and safety, agri-chemicals, ATV use, fencing, feed budgeting, relief milking, calf rearing, animal health, soils and fertilisers, tractors and chainsaw use.

The tuition will be different farms and venues in Northland.

Dairy News december 6, 2011

news // 17

Rewards elude NZFSU SUDESH KISSUN

STRUGGLING FARM

operator New Zealand Farming Systems Uruguay (NZFSU) is a long way from profitability, chairman Vivek Verma says.

Speaking at its annual meeting last month in Auckland, Verma, who represents Singapore-based majority shareholder Olam International, says high operation costs are the biggest challenge.

distracted the NSFSU management.

Nevertheless the company increased revenue by 90.8% to $US43m in 2011, chiefly by increasing milk production from 68m L to 105m L, and via an increase in average milk price from US28.3c/L to 38.1c/L. But Verma says the company is not yet fulfilling its potential. “While I am confident the company is now progressing well towards implement-

“Challenges remain in executing the business plan and crystallising the value of the company.”

NZFSU, developing and running dairy farms in Uruguay, posted a $US8.7 million loss for year ending June 30 2011. Last year it lost $US8m.

Verma describes 201011 as “a fairly tumultuous year” for the listed company with big challenges for management, including changes in senior management and operating strategy.

In Olam’s first takeover attempt it increased its stake from 18% to 78%.

A second bid took its stake to 86%. A small group of minority shareholders, led by New Zealand investors, are holding out and refusing to allow Olam to buy the remaining shares.

Verma says consideration of a rights issue has also

ing a profitable pasturebased dairy farming model in Uruguay, there is still a long way to go. Challenges remain in executing the business plan and crystallising the value of the company.”

Challenges include completing development to raise the number of dairies from 38 to 50; realising plans for infrastructure such as electricity, irrigation and housing; increasing milk production and the number of cows, and raising percow production. Training senior managers also is a challenge.

Most challenging is cutting the cost of production. In the last financial year, the average cost of production was close to

US48c/L and the current year’s budget is US30c/L. Current cost of production is way above budget.

The business plan shows cost of production at under US25c/L at maturity in 2014-15.

At the annual meeting, minority shareholders approved a loan extension without which the company’s expansion

plans would have come to a halt. The credit limit under the Olam loan will increase from $US85m to $US110m, and the term will be extended by 12 months to become repayable by December 31 next year. This funding is required for continued development; capital raising will again be reviewed in 2012.

New Zealand Farming Systems Uruguay is a long way from profitability, shareholders have been told.

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They join majority shareholder Olam’s four representatives on the board.

The independents are Taranaki dairy farmer Rob Poole, lawyer Tim Storey and professional company director Peter Wilson. They replace John Roadley and Graeme Wong, who retired at the annual meeting.

NZFSU chairman Vivek Verma thanked Roadley, a former Fonterra chairman, and Wong for their contribution. NZFSU has benefited from Roadley’s governance experience and farming knowledge, he says.

“John has huge enthusiasm for the opportunity in Uruguay, and in three and a half years he has personally visited Uruguay eight times on behalf of the company. With his contributions John has gained tremendous respect within the board and among managers and staff in Uruguay.

“Graeme has expertly chaired the audit committee. In the last year alone, he has worked hard during the two takeover offers, capital raising discussions and Olam loan negotiations with professionalism, willingness and untiring patience.”

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Dairy News december 6, 2011

18 // world

in briefs UK farmers seek better prices

Parmalat says sorry

UK DAIRY farmers want milk buyers to come forward with a price rise this month.

Speaking after a meeting of the national dairy board recently, NFU Dairy chairman Mansel Raymond says price rises are needed to ensure farmers have the confidence and cash to stay in business.

This summer the UK sat at the bottom of the EU price league table – 4p/L below the average, he says.

“Today, despite farm gate price rises between 1p/L and 2p/L this autumn, the average UK farmer is still only seventh from the bottom of the league table and 3.25p/L below the average price.

“What’s more, prices remain below the value of milk according to key UK market indicators for milk, cheese equivalent and actual milk price equivalent.

“There is some good news.

Some farmer confidence has been built over the past six months resulting from recent price rises and a strong demand for dairy.

ITALIAN DAIRY processor Parmalat has apologised to Venezuelan President Hugo Chavez after a public spat over alleged milk hoarding by the dairy company’s local unit.

“We respectfully offer our sincere apologies,” Parmalat said in a letter to Chavez published by local media, saying it had failed to communicate its position clearly over authorities’ confiscation of some milk.

With the high cost of living a sensitive electoral issue, the Venezuelan government is examining the food sector and has legislated new price caps and checks for speculation.

In the Parmalat case, authorities last week confiscated some of its milk products and accused the company of hoarding. It responded by saying the government was shooting itself in the foot because some products were for state bodies.

That prompted a furious reaction from Chavez, and he ordered an official probe.

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A LEADING Australian bank predicts dairy prices will weaken in the medium term as a large exportable surplus builds in key producing countries.

The 2011-12 Australian dairy season is off to a strong start with solid output in Australia. But combined with surpluses in New Zealand and northern hemisphere countries, this boost to Oceania supply is likely to lead to further price falls for dairy.

NAB says Australian milk production is expected to rise another 2.2% in 2011-12 and New Zealand’s by 5%. This is forecast to lead to a 7% fall in prices from 2010-11 levels.

NAB agribusiness general manager Khan Horne says milk production to date in 2011 is 2% higher than the same time last year, driven by strong seasonal conditions in many dairy regions, falling feed costs and favourable pricing.

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in a considerable exportable surplus.

Global demand has not kept pace with supply, and the key question is who is going to absorb this surplus? says Horne.

“Looking ahead, these market fundamentals point to further falls in the world dairy price during the year, but it’s important to note that prices are still 48.5% above their average over the past decade,” says Horne.

Much of the increase in Australian production is coming from northern and western Victoria, where year-to-date production is up 11.4% and 5.5%, respec-

tively. Similarly, Tasmanian dairy has looked solid so far this year, with yearto-date production up 10.2% while New South Wales is up 2.9%.

In contrast, Queensland and Western Australia are down at least 8% while South Australia is down 3.1%. Overall, Horne expects Australian dairy production to reach 9.3 billion L in 2011-12 as a result of favourable conditions coming into the spring flush while water storage levels remain healthy for key producers along the east coast. This represents an increase of 2.2% on 2010-11 levels.

market correction continues THE PEAK in the recent cycle in dairy prices has well and truly passed, with prices having now declined for seven consecutive months, says NAB. On a product weighted basis, average Australian dairy prices in October were down 1.3% in US dollars and are down 10.4% since peaking in March.

Driving price falls through the

month were largely falls in anhydrous milkfat, casein and butter. In contrast, prices for milk powders and cheese have been relatively flat in recent weeks.

A steady production response has been the catalyst to falling prices. In the northern hemisphere, a fairly solid season in the EU and US resulted in solid gains on last years’ production.

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company, Robert Wiseman Dairies, is teaming up with A2 Corporation to introduce a range of A2 Milk products next year.

A2 Milk is milk from cows selected to produce only A2 beta-casein protein, the ‘original milk protein’ all dairy cows produced prior to natural genetic variation said to have occurred several thousand years ago, leading to the appearance of A1 beta-casein protein in dairy herds.

Milk containing A1 and A2 beta-casein is a “nutritious and healthy food” and in Britain most fresh milk for sale contains both types of beta-casein protein, says a Robert Wiseman statement.

“In Australia, where A2 Milk has been available for a number of years, many people who have self-diagnosed intolerance of milk but are not medically diagnosed as being lactose intolerant, are finding their symptoms are improved or alleviated by drinking A2 Milk.

“That’s because they are likely to be reacting to the impact of the beta-casein protein in milk as opposed to the lactose.

“Studies have shown that as many as one in five people in western countries believe they are intolerant to dairy and find it hard to digest milk.”

But according to the UK National Health Service only one in 20 people in Britain is lactose intolerant.

Robert Wiseman Dairies managing director Billy Keane says introducing A2 Milk alongside existing fresh milk products can bring people back to dairy and grow the market for fresh milk in Britain. “We look forward to working with customers and suppliers to introduce A2 Milk in the UK.” A2 Corporation managing director Geoffrey Babidge believes the UK fresh milk market could gain a new following of consumers seeking the benefits of A2 Milk.

“A2 Corporation is delighted to partner with Robert Wiseman Dairies in introducing this dairy product into this market.”

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world // 21

on industry-good activities in the 2010-11 year. In a year of contrasting fortunes across the nation’s dairy regions, the national research and service body spent $A33.8m on R&D and $A17.2m on industry services. The Dairy Services Levy provided $A33.1m of income, with $A18.8m of matching Australian Federal Government funds.

Dairy Australia chairman Max Roberts told its annual meeting recently the figures were not too dissimilar to when Dairy Australia was formed in 2003, when spending was $A52m, “Then, industry contributed 60% to Dairy Australia’s operating funds; now it is 55% of funds,” says Roberts.

“While the dollar figures may be the same, the programmes we invest in have come a long way.

Our projects are more targeted, resulting in

research and extension which has helped drive profitability and delivered value back to farmers and their businesses, whether through feed conversion efficiency or natural resource management, ensuring dairy has a voice in the health and nutrition debate, protecting industry reputation or keeping the door open to key international markets.”

Dairy Australia managing director Ian Halliday

says under the organisation’s new strategic plan for 2012-16, 45% of funds would continue to go towards improving farm margins and growth opportunities, while 25% would be poured into promoting and protecting dairy’s value and integrity and close to 20% would go to growing skills and capability.

“Looking ahead to the next five years, and with the difficulties of recent events in mind, our plan aims to accommodate the regional diversity of our

industry and acknowledges the need to accelerate adoption of research to sustain profitable farm and manufacturing businesses,” says Halliday.

Halliday acknowledged the floods, cyclones and drought affecting dairying regions around the nation in the past 12 months.

“Dairy Australia provided strong support to levy payers and the broader industry to cope with these challenges during the past year through practical solutions, direct action and on-the ground support.

“However, many parts of south east Australia experienced the most favourable conditions in a decade coupled with strong export demand and competition. Thus the medium term outlook for dairy is positive for these dairy regions based on population and income growth and changes in diet of emerging economies in Asia and the Middle East and continued consumption growth per capita in Asia.

“And predictions also indicate national dairy consumption will increase at about 2% per annum.”

Throughout 2010-11 Dairy Australia also supported the Australian Dairy Industry Council (ADIC) in analysing and understanding the potential impacts of domestic policy and market initiatives such as the proposed carbon pricing mechanism, the Murray Darling Basin Plan, supermarket milk price cuts, changes to animal welfare standards, the National Food Plan, food labelling and the Australian Dietary Guidelines.

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Implementing the Dairy Moving Forward pre-farm gate investment in research, development and extension, which covers animals, feed base management, natural resource management, people and farm management.

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Dairy News december 6, 2011

22 // opinion OPINION Ruminating

EDITORIAL

Blue all the way

milking it...

Political karma

MILKING IT was bemused at claims by commentators at what a great loss Stuart Nash will be to New Zealand politics with his – and others – demise in the Labour Party’s rout in the general election.

While those in Wellington’s out-of-touch beltway and the Labour Party may be mourning Nash’s loss, it’s a fair bet most dairy farmers are enjoying the political up-and-comer getting his political come-uppance!

Only a few months ago, the smarmy Nash released ‘figures’ claiming the average dairy farmer was paying less tax than a couple on the pension and he questioned whether agriculture is paying its way. Most savvy commentators rejected his comparison saying the figures were based on turnover rather than profit, which all businesses were taxed on.

With this attitude about farming it’s no surprise Labour again took a drubbing in the rural booths. There won’t be too much sympathy in the countryside for Nash after his nasty tirade.

Don undone

THE ONE high-profile farmer candidate who didn’t make the grade was former Federated Farmers president Don Nicolson who stood for ACT in Clutha Southland.

While he probably never expected to beat Bill English, he might have hoped for a better showing than being pipped by ‘candidate’ informal votes and being 1567 votes behind the Green Party candidate.

Incidentally English got nearly 19,000 votes more than Nicolson.

Green tide

THE GREEN Party is a big winner: at least 13 MPs in the new Parliament. Some are wasting no time in signalling they will fight for water quality.

The dairy sector is all for clean, quality water.

But our humble plea to the Greens is not to forget giving credit to the majority of dairy farmers, who champion sustainability and keep their rivers and streams clean.

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ISSN 1175-463X

Milking dairy’s plight

ONE QUEENSLAND farmer is not sitting and watching his business sink.

Fed up with impossible competition from the supermarket giants, Coast dairy farmer Graham MacIntyre created his own brand to enter the fray.

Demand for Queensland Milk has doubled since the operation started in late September.

He is blown away by the support locally and across the state.

“I can’t believe the support we’ve received. I think it’s because consumers are sympathetic to the plight of dairy farmers and understand Queensland Milk is a small outfit trying to keep dairy farmers in business,” says MacIntyre.

The brand could be sustaining 20 dairy farmers

by July next year, he says.

“My family have been dairy farmers for 100 years and I didn’t want to stop dairy farming, but I couldn’t get a decent price at the farm gate – a price that made it worth my while to keep farming.”

JOHN KEY has the mandate to run the country for another three years.

Though agonisingly short of an absolute majority, he has support of ACT and United Future to govern. Again he has extended a hand to the Maori Party, which has seen its numbers slashed from five to three. But that is our MMP electoral system at its best.

With market volatility gripping the EU and the US, it’s imperative we have a stable government.

And Key is the man to deliver it. The election results haven’t been officially ratified – counting of special votes is still going on – but it’s clear the rural sector has again put its trust in Key and National.

Except West-Coast Tasman, which Damien O’Connor has wrested back from National’s Chris Auchinvole, all rural electorate seats remain blue.

Interestingly, West Coast-Tasman, a large area geographically, is one of the best represented in the country.

Not only does it have O’Connor as its electorate MP, Auchinvole is back because of his position on the list and so is Kevin Hague, Greens.

Last week National’s David Carter was keen to continue as Minister of Agriculture, Forestry and Biosecurity.

There’s a lot of unfinished business over water, and making sure we get a sensible emissions trading policy, he says. There is also a push by National for more irrigation of farmland, and a priority to keep New Zealand’s biosecurity arrangements on top of the game.

Like Carter, Labour’s agriculture spokesperson O’Connor is waiting to see if he retains his shadow portfolios. He expects asset sales and foreign ownership of farms to be high on the list of issues he’ll be battling the Government on. Fonterra’s share trading plan is another issue where the debate isn’t over for O’Connor.

But farmers need not worry about Labour for three years.

National’s rural broadband plan will continue its roll out. And agriculture will not be forced into the emissions trading scheme (ETS).

National will only consider agriculture for the ETS when practical technologies are available to enable farmers to reduce their emissions and more progress is made by our trading partners to reduce their emissions.

The incoming Government faces a tough task. But it can be assured the rural sector will put its shoulder to the wheel to keep the country growing.

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Dairy News december 6, 2011

opinion // 23 Councils have got it wrong I REFER to an effluent article (Dairy News November 22) reporting regional councils are penalising farms for pollution. It is not farmers’ fault; it is the result of the toxic chemical fertilisers they use.

Somewhere in every farming magazine is mention of phosphates and nitrates being the two main causes of soil erosion and water pollution.

The toxicity of these products is such that it destroys the life of the soil, the biology and the micro-organisms.

These little creatures are part and parcel of

the recycling system, taking all waste falling upon the soil and turning it back into soil.

Once you destroy this life your soil becomes compacted and lifeless. There is no life to process the animal waste or effluent, so given sufficient water it runs off into our waterways and lakes, along with the phosphates and nitrates.

Councils don’t like that but they have it all wrong. Their greedy little eyes can only see the problem.

They refuse to look at the cause: synthetic phosphates and

Support for milk ban FONTERRA SUPPLIERS who keep breaching effluent management rules should face a milk collection ban, say respondents to Rural News Group’s weekly online poll.

According to 99% of respondents, Fonterra should not collect milk from farms where effluent management breaches are common.

Regional councils say basic errors by dairy farmers are hindering 100% effluent management compliance. A small number of farmers repeatedly flout effluent rules, the councils says. They

want Fonterra to take a harder line on these farmers.

Fonterra has doubled its team of sustainable dairy specialists. And it has launched ‘Every Farm Every Year’ to help farmer shareholders improve compliance with council effluent rules.

Since its launch in August 2010, assessors from AsureQuality have visited all 10,500 supplying farms, checking if effluent infrastructure is compliant, noncompliant or at risk of non-compliance.

Visit www.ruralnews. co.nz for this week’s poll.

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nitrates. They refuse to recognise the cause because it may upset the chemical fertiliser industry and they wouldn’t want that.

It’s easier to let the pollution continue and penalise and fine the farmers. That’s good revenue – yeah right.

New Zealand needs its farmers. These are

hard-working people and agriculture is our biggest export earner.

There is a better way, where we can keep improving our agricultural production and improve our environment at the same time. All you need is a live soil to make it happen.

John K Morris Agrissentials

Dairy News december 6, 2011

24 // agribusiness

Lindsay joins women’s network board INFLUENTIAL BUSINESS leader Sue Lindsay has joined the board of the Dairy Women’s Network (DWN), replacing founding member Christina Baldwin, who retired last month.

Her presence on the board cements DWN as a force in rural women’s leadership, and is a personal commitment to see more women move into leadership in the industry, says DWN chair Michelle Wilson.

“Sue’s high level of energy and inspirational vision for female leadership will be familiar to anyone who has attended some of our conferences in recent years,” Lindsay brings an affinity for the rural sector, having grown up on a farm near Winton and running it for three years following her father’s death.

She was head of rural supplies company CRT in Southland for nine years, doubling revenues for the Top 200 company and instilling commitment and passion for service in staff. She has since worked closely with rural women, developing and running BNZ’s Women

in Agribusiness leadership courses and collaborating with international business consultant Tom Peters.

“Over the years I have seen DWN develop a strong nurturing environ-

easily given the busy lives so many have.

The internet-based network has helped dairying women collaborate well and has made the network a body highly regarded, reflected in the calibre of its

“The internet-based network has helped dairying women collaborate well and has made the network a highly regarded body.”

– Sue Lindsay ment, helping women develop on a personal and professional level. There is a wealth of confidence and competence in the group and many members are ready to step up within the agribusiness industry,” Lindsay says.

She believes it was far sighted and visionary work by DWN founding members to establish a strongly internetdriven forum for dairying women. This structure helped women get together on line and has helped network numbers build quickly.

“Women need to be able to connect

sponsors and respect it is given.”

Lindsay’s latest research work helps her identify and promote potential leaders from within DWN ranks. She is about to release The Feminine Perspective – the role of women in the New Zealand economy.

“Global research indicates women are involved in 64% of all buying decisions, but our work indicates it is nearer 70% in New Zealand. I suspect it is even higher for women involved in dairying businesses.”

Despite this level of influence, she

is concerned at the low level of involvement women have beyond the farm gate in New Zealand agribusiness.

“Only 11.8% of positions on New Zealand agribusiness boards are filled by females, and that figure needs to be at least 30% to generate the critical mass to have meaningful impact.”

She sees DWN as the ideal incubator to push the talent there onto those boards, given the number of women already key partners in dairy businesses rivalling many corporates for turnover and staff levels.

In seeking great leaders for inspiration, Lindsay cites Air New Zealand’s chief executive Rob Fyfe and Howard Schultz of Starbucks as two leaders who understand the need to engage their people at all levels of the business to achieve the organisation’s full potential sustainably.

“The level of engagement of staff in many businesses is low, and there is a

Sue Lindsay

need for us to re-examine how we get generation Y engaged with companies.

It is time for a new leadership story and without a commitment to that change a leadership crisis looms.

“There are many studies that show a balance of male and female leaders is beneficial to a company in all respects.

We are simply not seeing that in New Zealand agribusiness.

“DWN has created a critical mass of like minds and will be a key driver for dairying women wanting to advance to leadership positions in the agri sector in coming years, it’s great to be part of that from the inside now.”

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Dairy News december 6, 2011

26 // Agribusiness

Fonterra’s $65b economy booster sudesh kissun

FONTERRA HAS paid its farmer

shareholders a whopping $65 billion over the last 10 years.

The co-op, which celebrated its 10th birthday in October, paid out a record $10.6b to farmers in the 2010-11 season ending July 31 this year. The record payout is $1.5b more than its previous best year 2007-08.

Fonterra chairman Henry van der Heyden says as a cooperative 100% controlled and owned by Kiwi farmers that money flows back into the local economy as farmers reinvest in businesses and buy more farm supplies and equipment.

“Most definitely, what’s good for Fonterra is great for New Zealand,” he

brunt of a stronger Kiwi dollar.

Earnings were also strong, distributable profit hitting a MARCH 2011 saw the Fonterra’s new record of 65c/share, from biggest ever month for exports which it paid 30c as dividend.

– 229,000 tonnes was sent Van der Heyden says overseas. some farmers questioned At that point the co-op was the need for high retentions closing an export container every given its strong balance 2.6 minutes – 560 containers a sheet – one of the co-op’s day. most important defences in That month alone it injected volatile times. “And that’s about $1.2 billion into the New what we are facing in the world Zealand economy, says chief financial officer Jonathan right now.”

Mason.

Fonterra’s total revenues for the 2010-11 year reached $19.9b, $60 million more than its previous milkpowder (BMP) nearly 46% up. record earnings of 2007-08.

At the top end of the earning scale, Prices for whole milkpowder (WMP) anhydrous milk fat (AMF) prices were and skim milkpowder (SMP) combined up 56% on the previous year and butter rose nearly 25% on the previous year.

told Fonterra’s recent annual meeting results show dairy’s in a sweet spot.

“In all our key markets, economic and in Whangarei.

But he cautioned farmers that while lifestyle trends are fuelling consumer demand for quality dairy dairy brought economic benefits, products and opening people were concerned about its new opportunities for effect on the environment.

Fonterra. In the past “At the same time, we year, these trends must recognise many underpinned record people worry the ecoreturns for sharenomic benefits of holders.” dairying are at risk of High commodbeing eroded by enviity prices flowed ronmental costs. We into a farmgate milk must demonstrate to all price of $7.60/kgMS our stakeholders that we despite a high Kiwi embrace sustainabildollar. ity across our entire Fonterra’s curbusiness.” rency hedgVan der ing shielded it Heyden says Henry van der Heyden from the full Fonterra’s 2011

record exports

Stars line up in Asia FONTERRA’S Asia/Africa, Middle East business was the best performer of its consumer segments.

Underlying earnings were up 12% on the previous year in a challenging operating environment.

The co-op enjoyed double digit growth in most of the key markets in Sri Lanka, Middle East, Malaysia, Thailand, Hong Kong and Taiwan.

Expansion into China led to consumer revenues in that market increasing 77%. Vietnam revenues were up 39%.

Chief financial officer Jonathan Mason says with continuing

economic strength in many Asian and Middle East markets, especially relative to many other parts of the world, these areas look good for Fonterra.

But it was a tough year in the Australia/New Zealand (ANZ) business. Underlying earnings were down 17%.

ANZ is nevertheless a success story for Fonterra, says Mason. “Our cumulative average growth rate over the last three years shows an EBIT of 11.5%.

“We have one of the largest

dairy consumer businesses in Australia and New Zealand with leading market shares in its target

product categories. ANZ has done well against some of its peers in both countries and our sales volumes actually grew slightly, by 0.7%, despite the difficult market conditions.

“Overall, our ANZ business remains in solid shape and we have a great portfolio of dairy brands and a strong base of consumer loyalty. We hold leading spots with cheese, spreads, yoghurts and dairy desserts in New

Zealand and Australia. In New Zealand specifically we lead in milk, flavoured milk and ice cream.”

Latin America remains a key part of the Fonterra structure and its business in Chile, Soprole, was the star of the show.

Soprole, the largest business under Latam, grew its consumer business in Chile where it already has a strong market position. It’s been posting strong growth in local currency terms over recent years and 2011 was no exception with a 12.5% increase in revenue, says Mason.

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Dairy News december 6, 2011

management // 29

It’s all in the soil PETER BURKE

FEED THE soil and pas-

ture will look after itself.

That message from Woodville organic dairy farmers Ian and Anne Cumming on whose property a recent field day was held to explain the success of their philosophy.

Ian Cumming’s family has farmed this property for three generations.

Sheep, beef and deer until 1995 when they bought a neighbouring dairy farm and moved into cows.

The organic ‘spark’ came in 2004 when, in an unscientific and unplanned event, urea went on one paddock but not the next. Both paddocks produced the same milk solids even though milk volume increased on the urea paddock. So the Cummings and their sharemilkers Graeme and Cynthia Lett started down the organic

path and have never looked back. They began organic farming in 2009.

The farm just outside Woodville, Tararua, is 250ha (170ha milking). A further 58ha is used as a run-off, 22ha is in trees, wetlands and utility areas. The property is

rate is 2.5/ha. But there is more to the Cummings’ farming than just numbers. Their philosophy of farming and land custody is to leave the land in a better state than before they took over.

“The basis of organic farming is the soil. Get the

“The basis of everything as far as organic farming is concerned is the soil.” flat/rolling river terrace due to its proximity to the Manawatu River.

430 Friesian/Jersey cross cows are milked on the farm and usually produce 130,000kg/MS per year. Last year was a blip due to terrible weather; production was down to 112,000kgMS. Currently their stocking

soil right and you get the health of the pasture right, and the crops and the livestock. Also you get right the health of the people working on the farm and the people eating the product. It’s an ongoing process.”

Cumming has spent a lot of time reading

books and surfing the internet to learn more about ways to get the soil biology right. Much has been written and he filters information to sort what will work on their farm from what works in the UK or the US. Ian and Anne and their sharemilking partners attend discussion groups run by Bill Quinn, OrganicsAg, where the learning process is ongoing.

A surprise to the Cummings is reduced animal health problems. “One of our big concerns when we started was how to deal with animal health problems. But these have faded away. I’m not saying they are gone, but we don’t seem to have ‘downer cow’ problems and at this stage mating looks like it’s improving.”

Use of Agrisea animal health tonic and homeopathic remedies from Homeopathy Farm Services is credited for keeping the stock in good shape.

Ian and Anne Cumming.

The biggest problem facing Cumming is buttercup – pretty to some but a headache to get rid of.

Again Cumming believes the answer lies in the soil and his approach is quite different to that of a conventional farmer. “It’s about getting the soil right and adding grass species that will do the same job.

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Good soil health (left) reduces animal health worries (right) on the Cummings’ farm.

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system you look at a plant and ask why is it growing.”

He has looked at various ways of controlling the buttercup, including cutting it and making changes to the fertility of the soil, but there is still a problem, although it’s less. The biologically active effluent and Agrisea pasture and soil nutrition on the whole farm, as their organic fertiliser, helps feed the biology of the soil.

“With a conventional system you put on fertiliser that feeds the plant, and the ground is really just a medium. But in a biological system you feed the biololgy and then let it do the job. It’s a case of feeding the soil not the plant, because the soil will do that for you.”

Cumming feels they have turned the corner in development of their farm and are starting to get rewards for their hard

work. They remain committed to improving the property for the next generation and also are confident about the future of organic farming.

While Fonterra is phasing out the premium on organic milk, the Cummings have another four years to run on their contract. They are philosophical about this and believe in organics.

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Dairy News december 6, 2011

management // 31

Science enters grass debate bernie reppel

A COMPARISON trial on the NSW

north coast this summer will assess the nutritional values of popular summer grasses and forages and add more science to the debate on which species is most valuable for milk production.

Supported by Dairy Australia’s programme ‘Subtropical Dairy,’ the trial will compare four perennial grasses – kikuyu, setaria, paspalum and Rhodes – and the forage crops millet and sorghums.

These are all C4 forages, more adapted to warm or hot seasonal conditions under moist or dry environments; all have only moderate nutrient quality, generally well below that of temperate species like ryegrass and prairie grass.

But, says project leader Bill Fulkerson, an authority on tropical pastures and now a field officer with the Norco milk processing co-op, well managed kikuyu, and probably setaria, are good for 14 L/day for a Holstein-Friesian cow.

That should rise to 18 L/cow with 4-5kg of grain, plus minerals deficient in these

grasses, and that would be “cheap milk”.

Fulkerson says the trials will manage the four grasses to optimise quality, based on regional experience with kikuyu, and with best management of the millet and sorghums.

“A good deal of research has been undertaken on management requirements for kikuyu, the main objective being to optimise nutrient quality.

“But the persistence of kikuyu is often poor because of the fungal disease kikuyu yellows and this, and subsequent difficulty in re-establishing kikuyu, has created interest in growing one of the three other summer grasses or in millet or sorghum to provide summer feed.

“NSW north coast dairy farmers have widely differing views on the benefits of the six forages, based mainly on anecdotal evidence.

“But recent analysis of setaria indicates its nutrient quality can be as good as kikuyu if managed in a similar way.

That includes an appropriate grazing interval, mulching to encourage higher quality new leaf and adequate fertilising.”

Fulkerson says a major issue for the trial is the problem in growing the for-

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ages under conditions that would allow for a valid comparison but still within a dairy context.

The slow and unreliable establishment of the four grasses – perhaps up to three years to grow uniform swards – made it impossible to start the study at this point.

“We needed to compare performance over a number of on-farm sites where two or more grass species were already established, allowing inter-relation of data.

“Paddocks chosen on a particular farm would need to have had similar paddock histories, with similar soil nutrient levels, confirmed in the spring and remedied by application of appropriate fertilisers.”

For the grasses, appropriate management would be to graze at 4-4 ½ leaves per tiller – about every two weeks in mid-summer – and mulch back after grazing several times during summer to promote leaf growth. Every second grazing would be followed by application of about 50kg/ha of nitrogen fertiliser.

Fulkerson discussed “management of summer grasses for optimum milk

production” at a Subtropical Dairy field day in Casino.

He says kikuyu is the dominant summer pasture on coastal dairy farms and, while it is capable of high summer growth, milk production could be limited by the grass’s relatively low quality.

Cows grazing kikuyu could produce up to 14 L milk/day – still much less than the 18-20 L expected from ryegrass – as long as the kikuyu was well managed and the cows were supplemented with high, energy-dense, cereal based feed as well as minerals to address deficiencies in the grass.

Cereal based concentrates could be fed to achieve higher milk production and the response to the first 3-4kg/cow/day Bill Fulkerson was excellent.

On the pasture side, grazing intervals had to be managed to maximise the amount of kikuyu leaf available to cows and reduce the development of stems.

Grazing at the 4 ½ leaf stage provided the highest proportion of leaf and the highest quality grass for cow consumption, he says.

Dairy News december 6, 2011

32 // management

Non-stop milking with batch joining INCREASING NUMBERS of Australian dairy

farmers in hot regions are using batch joining to achieve year round milk supply while avoiding joining over the hot, humid months when cows are at risk of heat stress and pregnancy rates are lower.

Heat stress is caused by either high temperatures or a combination of heat and humidity.

Heat stress complicates reproductive management: cows in the first three weeks of pregnancy may abort; cows are more likely to have silent heats, shortened heats or reduced in-calf rates.

Stewart Scott, a vet with Barn Veterinary Services at Muswellbrook, NSW, says while batch joining has very good benefits for the herd and the farming system, the lifestyle benefits were also

attractive.

“Farmers can achieve year round milk supply by joining the herd to calve in one, two or more batches.

Regardless of the number of batches, managers avoid joining over the hot humid months, say from new year’s day to Anzac Day,” says Scott.

A typical approach would be joining in three batches a year, with each joining period lasting about six weeks; eg Maymid June; August-mid September and November-mid December.

“Most of the herds in our area have 500 cows or more and each comes up with a slightly different joining pattern. There’s flexibility to adapt batch joining to the individual situation and still achieve the benefits,” he says.

In terms of labour and lifestyle, the batch joining system with a break over

Farmers can achieve year round milk supply by joining the herd to calve in one, two or more batches.

the summer makes January a fairly easy month.

The last calves are born by mid September and weaned by Christmas. So there’s no calving, calf rearing or joining to be done in January.

“You can arrange your system so January is a family-friendly month to match the school holidays while still achieving year round milk supply, and

winter price incentives.”

Re-starting joining at Anzac Day means calving starts in February, setting up milk production for winter price incentives.

There are also benefits for the herd. Calf health and welfare is improved by having them weaned before they are at risk of heat stress.

Scott’s experience suggests that avoiding joining

over heat stress months reduces the barren rate, or the number of cows exiting the herd because they are empty. This is because pregnancy rates improve and there is the option to move cows that are not in calf by the end of joining to the next batch.

“A herd that’s joined all year round typically has about 10% empty cows each year. We usually see

that fall to about 5% with the move to batch joining.

Batch joining also allows for more focussed management and streamlined labour demands.

“With a true year round calving herd, managers juggle a wide range of tasks on any given day – heat detection, calving, calf rearing, transition feeding and joining – on top of the daily routine of milking and feeding the herd. It creates a busy, complex management system,” he says.

A batch system involves periods where the daily activities are more focussed, eg blocks of heat detection and joining, and later in the season, blocks of calving and calf rearing.

“Managers often find the more focussed batch system easier, especially with larger herds.

It streamlines labour

requirements and makes it easier to plan.”

Barry Zimmermann, who manages Dairy Australia’s InCalf project, says the trend to avoid joining over the hot/ humid months is growing in the typical yearround milk supply regions of Queensland and New South Wales.

“If you are concerned about the impact of heat stress on herd fertility, compare conception rates between seasons,” says Zimmermann.

A difference in conception rate of more than 10-12% indicates poorer performance in the hot months if at least 100 inseminations were performed in each period.

Visit Dairy Australia’s Cool Cows resources (www.coolcows.com.au) to find ways to reduce the impact of heat stress on herd fertility.

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Dairy News december 6, 2011

34 // management

David Barber

Better forages lift NSW summer yields BERNIE REPPEL

SUCCESS ON a dairy farm depends 20% on genetics, 30% on nutrition and 50% on management,

where its biggest effect is in forage quality. That’s the message spelled out to Australian producers gathered at Casino to hear how to manage and feed their dairy herds through the

hot and humid summer typical of the NSW north coast.

It came from David Barber, a senior research scientist in dairy nutrition with Agri-Science

Queensland.

His second message to producers attending the field day – supported

by Dairy Australia’s ‘Subtropical Dairy’ programme – was that most farmers don’t look after their cows as well as they might.

Barber linked nutrition and management when he told farmers they had to get from “where the system manages you to where you manage the system.”

in hot weather.”

Barber says high-fibre forages generate more heat through digestion than low fibre diets so improving forage quality would have a positive effect on managing heat stress.

As cows would voluntarily limit forage intake during hot weather good quality forages should be available at these times.

And increasing the energy content of the diet with

“Walking to feed increases a cow’s heat load, so farmers should reduce the time cows spent walking during the hottest time of the day.”

He says the high temperatures and humidity typical of summers on the NSW north coast has a two-fold impact on dairy cow nutrition: Directly, via cows voluntarily reducing feed intake through factors such as panting, which reduced cud chewing, slowed the breakdown of feed and reduced the amount of water and buffers from saliva reaching the rumen.

Cows standing in the shade to keep cool restricted grazing time and decreased feed intake; any form of stress, including heat stress, could slow rumen contractions, which in turn slowed digestion.

“NSW north coast pastures mostly comprise C4 grasses, with more fibre in their cell walls, which is good for increased growth, and helps the grasses stand up, but the extra lignin in the cell wall reduces digestibility,” Barber says.

Humidity and high temperatures increase plant growth rates, which increase the neutral detergent fibre (NDF) content of plants and reduces potential intake.

“Walking to feed increases a cow’s heat load, so farmers should reduce the time cows spent walking during the hottest time of the day and increase night grazing.

Cows will do up to 70% of their daily grazing at night

good quality forages and concentrates would make up for the shortfall in reduced intake, and help reduce the metabolic heat load.

Similarly, increasing the concentration of minerals and vitamins in the diet – particularly sodium, potassium, magnesium and niacin – would compensate for the reduction in feed intake.

Improvement in milk yield has also been reported by feeding cows sodium bicarbonate at 150-200 g/cow/day during hot weather to help buffer the rumen. Barber said other ways to reduce the impact of heat included: Providing cool, clean water and ample trough space close to cows at all times. In hot weather, lactating cows have the capacity to drink at least 100 L/ day.

Allowing access to shade – in feed-out areas, grazing areas and over the milking yards – all day; shade could reduce a cow’s heat load from the environment by up to 50%.

Cooling cows at the dairy with shade, sprinklers and/or fans before and after milking would improve their comfort and enhance their capacity to eat.

“Let cows wander home and stand under sprinklers before the afternoon milking. Lowering body temperature will encourage higher feed intake during milking.”

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Dairy News december 6, 2011

36 // animal health

Choosing the right liquid feed charlotte westwood

EVERY WEEK yet another liquid

byproduct feed for dairy cows seems to appear on the market.

Not only is it hard to keep up with what’s new, now we also have to figure out just what’s best for the cows and the bank balance. Wading through the glossy brochures: where do we start?

With so many claims by so many companies, what questions do we need to ask?

What feed is most likely going to work within your existing feed system?

• In shed feeding system. If your system drops liquid feeds onto grain or other dry feeds, or into bins / lickballs in front of cows, you’re well set up for most liquid feed types.

A key benefit of liquid on top of dry feeds is to encourage intake of dry feeds.

Do take care with liquid feeds that aren’t particularly tasty.

If you’re considering a new liquid feed that your cows haven’t seen before, check with other people already using the new feed, or simply stick with a liquid feed you know your cows like.

It is also important to be careful

changing to novel/new feed types at critical times of the year, particularly through calving and mating. There’s no point backing cows off feed at critical times of the year.

Liquid feeds of low pH may limit intake by cows and/or may be corrosive on fittings.

• Open-trough feeding in exit laneways. Cheap and cheerful, this is a good way to get extra feed into cows as they arrive at or leave the shed. Care is needed to prevent overconsumption of liquid feeds by dominant cows.

Feeds containing high concentrations of water soluble carbohydrate contents (WSC) and/or those with low pH can create rumen health issues if cows over-consume. You may need to innovate to restrict access to open troughs.

Keeping liquid feed troughs away from stock water troughs can help limit overconsumption too.

Liquid feeds that contain additives such as Rumensin are not designed for open-trough feeding.

Adding liquid feeds to partial or total mixed rations with silages, hay and other feeds. Almost any liquid feeds can be mixed in with silages – provided the price is right.

“A wide range of liquid feed types is now available in New Zealand, each often characterised by different nutritional profiles. Selection of a product will depend on what your cows need, as influenced by stage of lactation, current production levels and what else is in the diet.”

On the matter of price, though it’s not ideal to compare liquid feeds simply on price (we ignore the nutritional and practical issues of getting the feed into cows), it’s a handy start point for comparing feeds.

We can compare the value of liquid feeds in several different ways. One is dry matter (DM) basis. Not all liquid feeds are created equal. Some can be watery and contain only a low content of DM. Others are surprisingly high in DM and represent better value. This is the single most important start point when comparing the value of liquid feeds. Don’t accept a quote for a liquid feed unless it’s accompanied by documentation that states the DM% for that feed. Prices for liquid feeds are not commonly quoted on a DM basis, with the

exception of some de-lactosed whey by-products.

It’s up to us to get a quote for a liquid feed then calculate back to price on a DM basis. Here’s how: if a high DM liquid feed such as molasses lands at $400/wet tonne and it’s 74.5% DM, divide $400 by 0.745 = $537/t of DM, or 53.7c/ kgDM. If another type of liquid feed lands on farm at e.g. $280/wet tonne and it’s 40% dry matter, divide $280 by 0.4 = $700 per tonne of dry matter, or 70c/ kgDM. Just because one liquid feed lands on farm cheaper on a wet weight basis doesn’t mean it is the best value.

A wide range of liquid feed types is now available in New Zealand, each often characterised by different nutri-

Charlotte Westwood

tional profiles. Selection of a product will depend on what your cows need, as influenced by stage of lactation, current production levels and what else is in the diet.

For most pasture and pasture plus silage fed diets, we’re typically after extra energy usually as extra WSC. Occasionally we may be looking for extra protein.

• Charlotte Westwood is a veterinarian and animal nutritionist who consults to Agri-feeds Ltd.

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Dairy News december 6, 2011

animal health / nutrition // 37

Better nitrogen uptake this summer DAIRY FARMERS looking to boost their maize and pasture growth this summer while minimising nitrogen losses can do so by using urea treated with a urease inhibitor, as shown by research by AgResearch, reports Ballance Agri-Nutrients.

The research is said to have shown Ballance’s product SustaiN Green (urea treated with the urease inhibitor Agrotain nitrogen stabiliser) offers farmers more flexibility to apply nitrogen when it’s needed most or when it suits them better, even if the weather or soil conditions are not optimal.

Ballance head of research and environment Warwick Catto says urea tends to convert rapidly to ammonium, which raises the soil pH near the granule. Without rain, this gives off ammonia gas (a process known as ammonia volatilisation) which can reduce the effectiveness of urea.

“SustaiN Green has shown increased yields compared with standard urea. And because the treated urea is less volatile, it gives farmers more

flexibility,” Catto says.

“Years of research show many factors influence nitrogen loss. The rate of application, level and timing of rainfall and low soil moisture are all such factors that contribute to ammonia volatilisation.”

Catto says typical ammonia volatilisation losses under normal pastoral use of nitrogen application – 30-50kg/ha – are 10-15% of the total applied.

However, losses through ammonia volatilisation can be as high as 50%.

“Side dressings for maize crops are one area where the use of SustaiN Green over urea could deliver savings to farmers this summer.

“The demands of growing maize mean urea is often applied under lessthan-optimal conditions.

Also, for surface-applied urea, the higher nitrogen application rates typically required for maize crops are associated with greater ammonia volatilisation losses.

“This is where we start to see some benefits for farmers, through additional yield grown from

urea retained using SustaiN Green. It’s the same for pasture – with the increased pasture production leading to more milk in the vat.”

Ballance sales and marketing manager Graeme Smith says

co-op’s technical sales reps are available to model different farming circumstances with land and weather variables to show the actual cost benefits of using SustaiN Green, which can be many thousands of dollars.

THE PASTURES grown by Gordonton dairy farmers Wayne and Raewyn Reynolds and Cambridge farmer Andrew Myers have been judged the best in the Waikato/ Bay of Plenty.

The farms were entered into the Pasture Renewal Persistence Competition, run by the DairyNZ-led Pasture Renewal Leadership Group which includes researchers, the seed industry, farmers and agricultural contractors.

The judges, Chris Glassey and Errol Thom, DairyNZ, Bay of Plenty farmer Stuart McHardy and last year’s winner of the competition, Paul Vossen, were impressed with the quality of the entries.

“All the finalists showed excellent pasture management skills and had an eye for the detail of grazing management, endophyte selection, weed control and nitrogen usage,” says Glassey.

The Reynolds won the best pasture sown more than three years ago, while Andrew won for best first-year pasture. The winners each receive $1000 of pasture renewal products, including seed from Agriseeds and Agricom, and herbicide from Gavin Grain.

The judges say it was Myer’s preparation and planning that was the key to his success.

“To date everything has been done correctly and you won’t see a much better result,” says Glassey. “Andrew identified that the process of pasture renewal is costly and time consuming so you may as well look after it to get a return on your investment.”

For Thom it was the Reynolds’ exceptional record keeping that made them stand out.

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Dairy News december 6, 2011

38 // animal health/welfare

Row over bobby calves treatment flares in Oz AUSTRALIAN DAIRY farmers say they care deeply about the welfare of calves and commit many hours each day to looking after them.

“Caring for our cows and calves is a big part of life on a dairy farm. We

Limit

make sure everyone does the right thing by our animals,” Dairy Australia says. “We ensure calves have a safe, healthy environment all their lives.

“We share community concern about calves’ wellbeing after they leave

our farms. We don’t condone cruelty to our animals. This is why dairy farmers make certain calves are fit and ready for transport.”

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dairy’s industry treatment of bobby calves. Quarterpage ads in city newspapers quoted AA saying “the questionable ethics behind milk production had been a long-held secret”.

The emotion-driven ads said 700,000 calves die each year, the male calf considered a ‘waste product’.

“We want the community to be aware of the practices of the dairy industry,” Animals Australia executive officer Glenys Oogjes says.

But Dairy Australia rejects the claims, saying a national industry standard for “time-off-feed” for bobby calves will now be implemented after government ministers failed to agree at a recent Primary Industries Minister Council (PIMC) meeting.

Representatives from the dairy industry, transporters, calf buyers and meat processors met after the PIMC meeting and agreed to the standard for trucking calves from farm to processing.

The industry standard for time-off-feed will complement national standards that limit transport time and require calves to be fed before transport from a farm.

Dairy Australia says it will seek to ensure all people handling and transporting calves follow standards for transport to protect calves from disease and maintain their health and wellbeing.

“Calves are the foundation of our industry and enable us to continue providing you with safe, highquality dairy foods.”

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Dairy News december 6, 2011

animal health // 39

New cow infertility focus

them too hard in production.

“If there was an investigation and we could find out why it’s happening then we might be able to improve things.”

Whitehead says that low fertility rates are common on district farms and were seen by farmers as a major problem.

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Established in 2008, JerseyGenome set out with extensive goals for the breeder, partners and ultimately the Jersey breed in New Zealand. 42% of the shortlisted young bull candidates for the 2012 Jersey Genes team are products of the JerseyGenome programme. Three years on these goals are being met and look like surpassing expectations.

The JerseyGenome scheme is intended to create wider opportunities for the breed, breeders behind the scheme and, ultimately, Jersey Genes.

The first crop of JerseyGenome bred bull calves have filtered through as nominations for the 2012 Jersey Genes team, adding a new dimension to the selection process.

Internationally recognised, Jersey Genes is a joint venture success story, supplying 26 proven Jersey bulls over a period of 19 years, making it one of the country’s most successful young sire testing programmes.

Currently the scheme has three sires: Canaan Nevvy Pioneer, Pukeroa TGM Manzello and Okura Manhatten ET SJ3 in the top 30 Jersey bull list (10% of the ranked graduates) and two (Pioneer and Manzello) in the top 30 All Breeds list (as at 12th November 2011). The most recognised of these sires, Okura Manhatten ET SJ3, has been exported to over nine countries and has sired at least 32,500 daughters in New Zealand.

In total, 150 bull nominations came in for the Jersey Genes 2012 bull team. 17% of nominations originated from the JerseyGenome scheme and 12 bulls have been selected to advance to the genomic testing phase. Five of the shortlist originates from JerseyGenome with the balance stemming directly via nominations from the Jersey New Zealand membership.

CRV marketing manager Peter Berney is unsurprised by the success of the venture.

“The combination of CRV AmBreed’s capabilities with the passion, experience and commitment of Jersey New Zealand members was always going to be a good one,” he says.

“We’re forced to do two calving seasons now, which is far from ideal. We’d get a better selection of choppers if fertility was better.”

He says farmers at the kitchen forums ware interested to hear about how the levy was being invested. “It’s good to know where the money is going.

It’s all right as long as it’s for something that will result in gains for farmers.”

The forum discussed artificial insemination issues and, like many around the district, also touched on labour force problems. “I know of at least four farms around here looking to hire people, but there aren’t many good

workers around,” he says.

After farming in the area for about 25 years, Whitehead is one of those farmers after some support. “It’s busy work, taking care of 230 cows on a 200ha property. It’s 24-7 at the moment.

“It would be good to employ someone to take a bit of the load. We’ve had a relief milker in the past but we’re looking for someone a bit more permanent now.

“It would be good to get away for a week or a fortnight. It’s been a few years since we’ve had a holiday.

“Our son lives up the road on another farm and he comes and helps out but we need something more permanent so we can take a break.”

The Whiteheads’ other children have taken up teaching and accounting.

He welcomes WestVic Dairy’s continued support for the In2Dairy program which aims to create job-ready assistant farm hands.

The pilot phase of the program resulted in 18 people finding work on local farms.

Fifteen are still employed.

Spreading the love around HATE THE cow that kicks? And the slow milker? And what about those cows that are a delight to have in the dairy?

Whether she’s a wonder cow or a workability nightmare, the Australian Dairy Herd Improvement Scheme (ADHIS) wants to know about her.

Michelle Axford, from ADHIS, says spring workability data collection is now underway.

“Now is the time that dairy farmers who herd record tell us about the cows they like and the ones they don’t,” Axford says.

All dairy farmers benefit from the workability data supplied by those who herd record.

“We all want animals that are easy to have in the dairy.

“That’s why workability traits such as milking speed and temperament are directly included in the Australian Profit Ranking (APR) and likeability is included as a predictor of survival,” she says.

Farmers contribute workability data on this season’s two-year-old heifers through their on-farm software or directly to their

herd recording centre.

“Dairy farmers are good at scoring workability traits. Australian Breeding Values – ABVs – provide a reliable comparison between bulls for milking speed, temperament and likability. So much so that bulls with high likeability ABVs have been found to produce daughters that are more likely to stay in the herd for longer.”

• ADHIS is an initiative of Australian Dairy Farmers’, and is partially funded by dairy farmer levies via Dairy Australia.

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COW INFERTILITY is a big problem on some south-west Victoria dairy farms in Australia and the Port Campbell property of John and Leeanne Whitehead is no exception. Over each of the past two years about 40 of the Whiteheads’ 230 cows have failed to get into calf.

“That’s far too high and it would help to know what things we could do to ease the problem,” Whitehead says.

He raised the issue of fertility at a kitchen forum conducted by WestVic Dairy, and is pleased that levy money will be allocated in 2011-12 to investigate the problem.

WestVic Dairy is planning a project that aims to improve cow health and fertility on 100 dairy farms in Western Victoria through an extension program.

The project will start early 2012 to guide farmers towards best practice for good fertility performance. Whitehead hopes it will contribute to better knowledge for farmers.

“A lot of farmers have the same problem and we’d like to know the reasons why,” he says. “It might be that we drive

2/3/10 3:41:24 PM

Dairy News december 6, 2011

40 // animal health

Cow heat stress not a black-and-white issue AN AUSTRALIAN sci-

Ag Institute Australia Queensland division president David Lloyd presents the Bryan Medal to University of Queensland honours student Angela Lees at the St Lucia Campus last month.

entific study has shown heat stress in dairy cattle is not a black-and-white issue.

Prize winning research by University of

Queensland (UQ) applied science graduate Angela Lees, which measured heat tolerance of Friesian cows with varying amounts of black in their coat, proved inconclusive.

Lees is surprised by the result with no correlation found between the amount of black colour and performance under the Queensland sun. In fact, a cow mostly black

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was one of the best at handling the summer heat, leading Lees to conclude there are likely genetic factors at play.

The student from the South Burnett district has won the prestigious Bryan Medal for 2011 for her honours thesis looking at performance data from the milking herd at the university’s Gatton campus.

The medal was presented by Ag Institute Australia, formerly the Australian Institute of Agricultural Science and Technology.

It was inaugurated in 1976 to honour the work of distinguished pasture scientist and maize breeder Dr Wilf Bryan.

Lees received the medal from the Institute’s Queensland division president David Lloyd after selection from three finalists. The others were Matthew Lloyd (poll gene test on cattle embryos) and Reece Tollenaere (genes which trigger blackleg fungus resistance in canola).

In her heat tolerance

research, Lees divided the Gatton milking herd into 10 colour groups from almost white to mostly black.

Over the hot months October 2010 to March 2011 lots of data were collected, including body surface temperatures and respiration and panting scores three times daily.

Vaginal temperature was logged at 10 minute intervals in small batches of cows over 5 to 7 day periods. Milk production and composition was also monitored.

Lees says the Gatton campus dairy is well served with natural and artificial shade and had fans and sprays in the milking yards. She plans further analysis of the data.

Her husband Jarrod will also use it in his PhD research at UQ where he is studying wider aspects of heat stress on dairy cattle.

A future research option could be to test the performance of cattle without access to shade and yard cooling.

Lifting AI conception rates CONCEPTION RATES via artificial insemination (AI) could be lifted as much as 10% if insemination of dairy cows was better timed to ovulation, says Queensland vet Carl Hockey.

There is currently no practical way to directly identify when a cow was about to ovulate, he says. “Farmers depend on observing standing heat, a behaviour often associated with ovulation.”

Observing standing heat has become increasingly difficult as herd sizes get bigger. There is a greater demand on farm labour and cows show fewer signs of heat.

Hockey worked with two commercial dairy herds to better understand the ideal insemination time relative to ovulation: a year-round calving herd in Queensland which inseminated twice a day, and a seasonal calving herd in Victoria which inseminated once a day. The research was funded by Dairy Australia.

To identify cows for joining, the managers of each herd used heat detection based on standing heat and pedometers. During the study, cows in both herds were monitored for milk progesterone levels and were ultrasounded to pin-point when ovulation occurred.

The best pregnancy results were when insemination took place close to, but before, ovulation. The highest pregnancy rate (51%) was when cows were inseminated between 0 and 16 hours before ovulation.

However, only a modest proportion of all AI (31%) took place in this time period.

InCalf project leader Barry Zimmermann says submission rate and conception rate are two important factors influencing the in-calf rate in a herd.

Dairy News december 6, 2011

machinery & products // 41

Tracker helps lift cows’ DM intake NEIL KEATING

AN INCREASE in dry-matter intake of 2kg/cow has been consistently and reliably recorded by a UK agricollege farm using a Digi-Star TMR Tracker, reports the New Zealand Digi-star distributor Schouten Machines Ltd, Southland.

New in New Zealand, the Digi-Star feed system comprises two components: the TMR Tracker computer software used to create, cost and manage the ration mix, and a cab control system fitted to the diet feeder.

Bridgewater College, Somerset in early 2009 installed the ration feeding system, discovering the 2kgDM/cow to be “an important number,” says farm manager Steve Jones.

“The more DM consumed by the cow, the more milk she can produce. The higher DM intake increased the milk yield by 2L/cow/day and improved

body condition of the animals.”

Several months experience of the system is said to have satisfied Jones that the hardware and software work together. Feeding is more efficient and the returns are better, he says.

need less mixing time and to consume less power.”

The Digi-Star’s chief appeal lies in its ability to show the farmer all important data about feeding in one Windows-based program and then to allow easy change of ration

managed using the Cab Control system fitted to the feed wagon. This comprises two components: a weighing indicator, and a scale system fitted

The Digi-Star’s chief appeal lies in its ability to show the farmer all important data about feeding in one Windows-based program and then to allow easy change of ration mixes.

The Digi-Star system was chosen in the course of a search for a new feed mixer.

Crucial to this choice was that the cows should not be able to “sort out” the components of their feed in the bunker, Jones says.

“We tested the delivered ration and noted that the ratio of ration ingredients in the feed bunker remained the same several hours after delivery.

The mixer was also required to

mixes.

The farmer enters the ration in his office computer then transfers the data with a ‘datakey’ to the indicator on the feed mixer. With Datalink, the data exchange between PC and mixer is wireless.

Once the data is in the indicator, the feeder need only select the recipe and loading can begin. Having created the mix, the component information and quantities are

to the mixer wagon itself, which is wirelessly linked to a second control box fitted in the cab of the loading vehicle.

After the animals are fed, the data on loading and delivery can be retrieved for further analysis in the TMR Tracker program.

This analysed data can also be transferred across into more

general farm management programs. www.tmrtracker.com also provides access to online support or an international help desk.

Tel. 03 208 8059 or 027 711 7270 www.schoutenmachines. co.nz

MULTICUT R

TA RY

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Dairy News december 6, 2011

42 // machinery & products

Effluent surge prompts ‘gamble’ tony hopkinson

SURGING GROWTH

in dairy effluent handling prompted Carterton contractors Shane and Sonya Gray (t/a Grays Contracting) to “take a bit of a gamble” and buy an Abbey slurry tanker from Farmgard Equipment.

Four generations of his family have been contracting in Wairarapa. “But if I was starting now I don’t think I’d bother. The legislation facing us now is mind boggling.”

Bureaucracy gone mad, he says. New rules constantly on road travel with implements, and on drivers and staff.

“Not that contractors have a bad safety record; we’ve been responsible and safe. But these new rules are costs to be passed on to our farmer clients.”

Gray bought his Irishmade Abbey slurry tanker (model 2250R, capacity 10,000L) from Wairarapa Machinery Services, Masterton.

It has an auto fill which goes next to the pond with a suction hose going into the liquid. The hydraulic arm is lowered and the tank begins filling. A double trap prevents overfilling. Two relief valves prevent the tank overpressurising during emptying.

“I like to have the pond stirred for at least two hours so the material flows better and it only takes about five minutes to fill the tank.”

An innovation by Abbey is an inverted splash plate which, during emptying reduces spray drift. The material is evenly spread 8m from the tanker.

Gray likes the unit’s big flotation tyres. They make

Shane Gray, Carteron: mind boggled by rules invading business.

the full tank easier to tow and “hardly leave any marks.”

He tows the tanker with a JD 160hp tractor. The axle is placed for lowest centre of gravity and the draw bar is sprung to minimise stress on the tractor.

Their business is based as a separate entity on their dairy farm from where they work up to 30km north to Masterton and to Cape Palliser 65km to the south.

Fairbrother now has two brands...

They do silage, baleage, straw and hay with two self-propelled Claas harvesters doing 3000ha annually. For the baleage, straw and hay they have two Welger round balers and two New Holland for baling medium squares, processing about 30,000 bales a season.

The region’s many lifestyle blocks demand a lot of hay – 20,000 conventional bales per season.

Gray does a full cultivation, plough, disc and

drill service for 400ha in the spring and the same in the autumn. He also does 200ha of direct drilling.

“We have 12 John Deere and two Claas tractors a JCB loader and five trucks with five permanent staff with numbers rising to about 20 as needed.”

The area is not a large in dairying (40% milk cows) but 95% of his customers are dairy farmers.

Tel. 09 275 5555 www.abbeymachinery. com

CULTIVATION

QUALITY DAIRY HOT WATER CYLINDERS 180 litre – 1200 litre available for new or replacement installations.

Optional stainless steel case.

Stainless steel barrel now available, 600 litre – 1500 litre with plastic case.

Superheat Popular Sizes (measurements in mm) 180 ltr 610 dia x 1330 high 3kW 225 ltr 610 dia x 1550 high 3kW 270 ltr 610 dia x 1750 high 3kW 270 ltr 710 dia x 1350 high 3kW 270 ltr 810 dia x 1050 high 3kW 350 ltr 710 dia x 1660 high 2 x 3kW 350 ltr 810 dia x 1400 high 2 x 3kW 450 ltr 710 dia x 2010 high 2 x 3kW 450 ltr 810 dia x 1600 high 2 x 3kW 500 ltr 915 dia x 1400 high 2 x 3kW 600 ltr 810 da x 1900 high 3 x 3kW 600 ltr 915 dia x 1500 high 3 x 3kW 700 ltr 810 dia x 2200 high 3 x 3kW 700 ltr 915 dia x 1700 high 3 x 3kW 800 ltr 915 dia x 1900 high 3 x 3kW 800 ltr 1160 dia x 1400 high 3 x 3kW 1000 ltr 915 dia x 2400 high 3 x 3kW 1000 ltr 1160 dia x 1650 high 3 x 3kW SUPERHEAT STAINLESS SIZES 600 ltr 920 dia x 1650 high 3 x 3kW 1000 ltr 1170 dia x 1640 high 3 x 5kW 1200 ltr 1170 dia x 1865 high 3 x 5kW 1500 ltr 1170 dia x 2180 high 3 x 5kW Special sizes available on request.

Superheat cylinders include elements, thermostats, valve pack, vacuum break and sight tube.

Fairbrother Industries will now be manufacturing the Hooper cultivation range

Available from your local dairy merchant.

Manufactured by:

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Superheat mains pressure domestic cylinders now available

DAIRY HEAT sizes 200 ltr 600 dia x 1295 high 3kW 300 ltr 710 dia x 1330 high 3kW 400 ltr 710 dia x 1820 high 2 x 3kW Valve pack and sight tube extra for DAIRY HEAT cylinders

Dairy News december 6, 2011

Tractors & machinery // 43

Grass, forage sowing versatility SOW GRASS into exist-

ing pasture, or sow grass or forage crops into cultivated ground, or over-sow and fix pugged paddocks – it’s over to you, says Orgin Agroup of its new Hatzenbichler tine harrow with broadcast air seeder.

Versatility is the main thing about these Austrian machines, Origin says.

“The 6m working width at 10-15km/h gives high productivity. Weight (before seed) of only 550kg, and three pointlinkage mounting with a hydraulic folding frame to 3m, makes it suitable for smaller tractors and easy to use on hills.”

The harrows is made up of three flexible sections that “float and flex” with changes in the ground contour for even pressure on each tine.

The spring tines are made from 8mm thick x 450mm long, oil-hardened spring steel said to give three times the service life of a normal spring steel

tine. They suit ripping or “gentle cultivation.”

The harrows can be fitted with an 8-outlet or 16-outlet air seeder capable of sowing small seeds at 1kg/ha or grass seeds at up to 40kg/ha. Seed distribution is via distributor plates across the full width of the machine, giving even overlapping spread via twin fans driven by 12V motors. An optional hydraulic fan is available for heavier seeds or greater working widths.

Hopper capacity is 400L. Calibration is quick and simple, Origin says, with seeding application rates being maintained via a ground driven wheel.

An optional computer controller allows the operator to know the amount of seed being applied during operation and the amount of seed remaining in the seed box. It allows up to 19 separate seed varieties to be stored in its memory, eliminating the need to calibrate the

machine each time.

Broadcast air seeders are also available separately, allowing them to be fitted to Cambridge rollers, discs, power harrows, etc.

Other features: powder coat finish, central tineangle lever adjustment, and a platform for easy filling of the seed box.

Tel. 07 823 7582 www.originagroup.co.nz

ENGINEERED TO SET YOUR HEART RACING

NEW MF 5400: SUPERIOR DNA www.masseyferguson.com/dna

Loft it high THE WORLD’S

biggest telehandler, boasts Manitou, the French company that launched the rough terrain forklift in 1958.

Its new beauty, the MHT 10225, lifts 22,500kg to 10m. And it is safer than a crane or forklift, the company says.

‘Tele-lifting’ a big load – instead of suspending it under a crane – makes for greater stability. And compared with a forklift, greater safety is achieved by the telehandler’s load management system and pre-programmed load charts for each attachment.

The MHT range can handle freely suspended loads either with a single hook system, or it can be ordered with an integrated winch system.

Other attachments offered include work platforms up to 1000kg,

compliant with AS1418.10.

Manitou Australia managing director Stuart Walker says the MHT telehandlers are designed to operate on “very rough terrain, handling very heavy and bulky loads.”

“The machine and accessories’ torque is crucial to tasks demanding versatility and capacity.

“Far from being ‘just another loader’, the MHT is manoeuvrable, precise and versatile.”

Tel. 0800 303 090 www.abequipment.co.nz

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Dairy News december 6, 2011

44 // tractors & machinery

Chopper takes all LELY’S trailed forage harvester, the Lely Storm 130 P, has proven reliability and long life. High trade-in values prove its quality, Lely says.

A notable feature is the machine’s large flywheel, a

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fuel saver the maker says.

The Lely Storm works efficiently, saves energy and gives a maximum output. Capacity is high but maintenance is low, making the machine ideal for contractors and large farmers.

The 1800mm pick-up leaves no grass behind thanks to five tine bars with tine spacing of 54mm.

“Even wide, bulky or

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uneven swaths with short crop are easily managed by these properties,” Lely says. “The pick-up accurately follows the ground contours giving a smooth lifting action without breaking the flow of the swath.”

Four intake rollers create maximum compression and a reliable and even in-feed of the crop.

The Profi model is equipped with an electronic metal detector on one of the intake roll-

ers to shut down the infeed immediately a metal object is detected.

The 1300 mm flywheel with 10 knives and 5 blowing paddles maximises chopping quality. Low power requirement for chopping and transporting saves fuel – thanks to the huge flywheel.

Onboard hydraulics make its oil flow independent. A built-in oil pump with its own oil reservoir supplies

the hydraulic power for raising the pick-up and reversing the drive and

spout rotation. All parts of the system are fully integrated with electro-

hydraulic in-cab controls.

Tel. 0800 535 969 www.lely.com

Loaders suit JD new, older

Multi Wire Tread-In Posts * Unique angled clip prevents unintentional tape detachment * Unique foot wedge design provides superior holding performance * Heavy duty, UV resistant polymer

Contact your local rural supplies merchant or phone 0800 266 258

www.herdflow.com New Zealand’s leading dairy shed & backing gate manufacturers Freephone: 0508 HERDFLOW (0508 437 335)

Tow and Fert Multi 800 The Multi Role Applicator

HEAVY-DUTY loaders from John Deere equally suit many sizes of the company’s new and older model tractors.

The new H Series loaders, which replace the previous loader models, have more cast-steel connecting points and better visibility, and they have integrated components that make installation and removal easier.

The H Series loaders, compatible with many John Deere tractor models, have different levelling options, non-self levelling (NSL) or mechanical self-levelling (MSL), depending on customer needs and legal/safety requirements.

More cast-steel components in high-stress, highload areas of the loaders helps them handle big jobs with ease and extend working life, a JD spokesman says.

“All major boom pin connection points are cast-steel for better pin alignment and reduced load stress which is an improvement over traditional bushing-type joints.

“We’ve also designed the H Series with a lower torque tube and concealed oil lines within the loader boom to give it a cleaner look, improve over-the-hood visibility for the operator and to reduce potential for damage to oil lines during use.”

In addition, John Deere has added integrated parking stands and pins into the loader which, combined with a single-point hydraulic connection system, allows the loader to be quickly removed or reinstalled with virtually no oil loss. To give customers access to a wide variety of John Deere loader attachments, the company uses a common global carrier.

Tel. 0800 303 100 www.johndeere.com.au

Mix and Apply, When you Want - Animal Health Products (eg. Zinc Oxide, Lime Flour)

- Dissolved Fertiliser (eg. Urea)

- Fine Particle Fertiliser (eg. Lime, RPR)

- 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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Dairy News december 6, 2011

tractors & machinery // 45

Farewell contractor for small spreads A TOW AND Fert Multi 800 liquid fertiliser spreader is a highly regarded item of equipment on a North Island dairy farm.

The owner uses it to spread coarse material such as magnesium, liquid fertiliser and weed spray, combined or singly.

The maker, Metalform, points out that Tow and Fert allows a farmer to spread small areas (eg 8ha) that a contractor may be reluctant to take on.

The patented Tow and Fert keeps coarse material in suspension by constant circulation in the tank and delivery lines. This and large spray nozzles prevent virtually all blockages.

The spreader is powered by a Honda engine. The tank

holds 1200 L total, of which 800 L is usable. Spreading width is 14-18 m and it can cover 12-16 ha depending on product and application rate. Ideal towing vehicle is a ute or a tractor.

In operation, the tank is first filled with water and products such as bio-fertiliser, dissolved urea, magnesium oxide, lime flour, RPR and trace elements are added from one tonne or 25 kg bags through a grate to avoid lumps.

Within a few moments the material is totally in solution, no material getting a chance to settle. The machine has built in weigh scales with a large display, easily read.

The booms are extended and spraying started with a remote operated by the driver.

The Tow and Fert comes with five sets of nozzles 14-18 mm, kept on the machine with snap couplings, saving time if different rates are to be sprayed. These nozzles can apply 15-50 L/minute.

A diagram on the tank shows which nozzles to use and the correct towing vehicle speed to give the required spreading rate. All mixes in solution immediately begin to be absorbed by the plants.

The tank can be filled from a trough or stream using an extra hose supplied, also suitable for fire fighting. The pump has a 5 m lift.

Tel. 06 374 7043 www.towandfarm.com

Check out our new websites www.ruralnews.co.nz www.dairynews.co.nz

They’re Above and Beyond.

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The all-new 7R Series Tractors with 147-206 kW of engine power (200-280 hp*) and 123-173 kW PTO power (165-232 hp).

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Dairy News december 6, 2011

46 // motoring

Coast to coast on a diesel rag A BRITISH team has

crossed North America from New York to Los Angeles in a Jaguar XF 2.2 diesel averaging 4.49L/100km over 4480km. This makes it the most efficient Jaguar ever built, the New Zealand distributor says.

Finishing in Los Angeles, the journey – the equivalent of London to the Sahara – required only four stops for fuel. Peak economy of 4.21L/100km was achieved on the penultimate day of the trip.

Paul Alcock, XF project manager Jaguar Cars, who made the trip, said: “This project was designed primarily to test the potential economy of the XF 2.2D. The figures were achieved by making every element of the XF as efficient as possible – aerodynamics, 4-cyl.

2.2L diesel engine, eightspeed gearbox. The XF team is proud of what’s been achieved – graphic

demonstration of the strength, engineering integrity and efficiency of the car.”

Driven by independent testers David and Alexander Madgwick, the XF 2.2D was a scrupulously standard UK registered, right-hand drive vehicle.

In the course of the adventure the car maintained an average speed of 85.2km/h in lots of spots including busy roads out of New York and, towards the end, entering Los Angeles, road works, high winds and a climb to 2217m altitude.

Despite such efficiency, the XF 2.2D maintains the levels of performance and efficiency expected of a Jaguar.

Capable of seating five adults in comfort, it’s equipped with leather trim as standard as well as a touchscreen display and climate control. The XF is capable of accelerating from rest to 96 km/h

in 8.0-seconds before reaching a top speed of 225 km/h.

The car will be launched in New Zealand early in 2012.

Jaguar XF: a hot performer notwithstanding its extreme fuel economy, the maker says.

Anyone for tennis?

Marina Eracovic with a Kia Soul.

KIA MOTORS will again sponsor the ASB

Classic tennis in early January and will be the official vehicle sponsor for the men’s Heineken Open the following week.

Todd McDonald, general manager of Kia Motors New Zealand describes the tennis association as a partnership “supporting a popular sport and lifestyle of many New Zealanders”.

“We have strong ties with active lifestyles and offer to support the endeavours of New Zealanders locally and at a worldclass international level.”

The two local events link with Kia’s involvement with the Australian Open, the Davis Cup Tennis and the brand’s global

tennis ambassador Rafael Nadal.

The Auckland women’s event has one of the best fields in the tournament’s history, now the top 20 players are confirmed.

The top eight seeds for the tournament will be ranked among the best 30 players in the world, with the unseeded world No.1 and seven time Grand Slam winner Venus Williams adding superstar element.

Local star Marina Erakovic will also compete. Her semi-final in the Wimbledon doubles this year and a WTA doubles win in Linz, Austria, in October, has seen her doubles ranking rise to 48, and with a 51-to17 win/loss ratio in singles this year she is now up to 61, after starting the year at 350.

In summer the quality of your grass will change. It’s time to start looking for alternative feed options that will provide your herd with energy and protein to maximise milk production and maintain body condition.

With RD1 Nutrition, you can effectively blend any product in our range, at rates that you want. Our blending service is available out of Tauranga (Tauriko) or New Plymouth.

• 70% Palm Kernel Expeller (PKE) • 30% Biscuit Cereal Meal (BCM) A well-balanced feed, which can be fed in-shed or ad lib in troughs.

The addition of BCM adds palatability to the feed, increased digestibility and added energy through the addition of starch and sugar.

*RD1 will supply all contracted tonnage. Spot tonnage is dependent on availability.

An overall cost-effective solution to increasing dry matter and energy intake.

Product standard specifications

• 50% Palm Kernel Expeller (PKE) • 50% Biscuit Cereal Meal (BCM)*

• 60% Palm Kernel Expeller (PKE) • 20% Biscuit Cereal Meal (BCM) • 20% Cottonseed Meal (CSM)

A well-balanced feed that should only be fed via in-shed feeding systems where intake is controlled.

This blend aims to provide a well-balanced feed with additional protein by way of CSM – helpful when pasture quality drops, and you’re looking for a way to maintain milk production and cow condition.

The BCM content provides additional energy to compliment the increase in protein provided by the CSM.

The addition of BCM adds palatability for cows, increased digestibility and added energy through the addition of starch and sugar. it is *It is not recommended to feed BCM ad lib unless ility mixed 70% PKE / 30% BCM. Due to high palatab and and grain levels there is a risk cows will gorge is. overfeed. This could lead to acute rumen acidos

Product standard specifications

Crude Protein

18.3%

Fat

7.2%

Fat

7.8%

NDF level

43.6%

NDF level

48.3%

Starch

12.6%

Starch

12.2%

7.5%

NDF level

36.5%

Starch

28%

Fat

8.0%

NDF level

47.5%

Starch

17.2%

Product standard specifications

21%

Fat

Crude Protein

Ideal for in-shed feeding systems and troughs.

12.2MJ/kgDM

Crude Protein

Crude Protein

This blend is similar to Option 3 with slightly less protein and higher energy levels. It aims to provide a cost-effective, well-balanced feed with additional protein by way of CSM for summer use.

Energy

13.9%

15.11%

12.42MJ/kgDM

Product standard specifications 12.2MJ/kgDM

12.9MJ/kgDM

• 70% Palm Kernel Expeller (PKE) • 20% Biscuit Cereal Meal (BCM) • 10% Cottonseed Meal (CSM)

Ideal for in-shed feeding systems and troughs.

Energy

Energy

Energy

OPTION 4

OPTION 3

OPTION 2

OPTION 1

MineralBoost RD1 Nutrition also offer a full range of MineralBoost products – which you can add to your blend or PKE. With Facial Eczema season closing in, we recommend MineralBoost + Zinc. Used at the recommended rate, this formula provides the milking cow with its daily requirements of zinc through the risk period.

This summer, choose a supplier that delivers on promises — RD1 Nutrition will guarantee contracted tonnage, no matter what.

Contact your local store, Technical Sales Representative (TSR), or your Animal Nutrition Sales Representative (ANSR) for pricing information.

Animal Nutrition Sales Representatives (ANSR) Jennifer Mair Northland, North Waikato 027 509 7463

Phil Harrison Waikato 027 509 7462 RD1 Nutrition

0800 731 333

Jason Finnerty Bay of Plenty 027 509 7461

Stu Bruce Taranaki, Manawatu, Wairarapa 027 509 7464

Visit WWW.RD1.COM/nutrition

CONSISTENT QUALITY, SUPPLY* AND PRICE

www.rd1.com

Summer Blends To help you choose, we have tailored four summer blends options (detailed below). These specifically aim to provide your herd with the balanced energy and protein mix required to maintain milk production over the dryer months.

s r e i l p p u s a r r e t n o F o t e v i Exclus

your December 6-8

deal Apex Acetyl or BrAss Full Flow trough VAlVes 20mm or 25mm

r o F 2 t e g e oF 1

# 245106 / 245103 / 245105 / 245104

Acetyl

the pric $44.99 sAVe up to

• Armless, reducing risk of stock damage • Above water float adjustment • 25mm water level differential from open to closed, reducing pump motor overload • Patented self-cleaning valve mechanism to minimise blockage • Full flow, diaphragm activated • Cord cleat for shutting off valve • New Zealand's favourite fullflow trough valve • Working pressure 0-1,000kpa (150PSI) • Full range of spare parts available

: l A e d e th

rra supplier lves per Fonte

RD1 Account

pack of 2 va • Limited to 1 r cash sales le o b s a il e a ri v e a v li k e c d to farm • Limited s ne orders, on o h p , s ld o h , s k e stocks last il h w r o 1 1 0 2 • No rainchec mber, 7 and 8 Dece , 6 d li a v r e ff • O

Price includes GST and may be subject to change. Terms and conditions apply.

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