Dairy News 10 December 2013

Fonterra to review forecast payout this week. PAGE 5 JOY OF OAD MILKING Easy lifestyle PAGE 24

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EU MILK WAVE COMING? Ireland leading pack of European producers eyeing to unleash premium dairy products once the milk quota is lifted in 2015. PAGE 3

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DAIRY NEWS DECEMBER 10, 2013

NEWS // 3

Irish poised to ‘unleash’ milk PETER BURKE peterb@ruralnews.co.nz

Double milk peak for Westland.

PG.08

Strong vote of confidence in co-op.

PG.23

THE IRISH are coming and they’ll soon be on our patch, says KPMG’s head of agribusiness, Ian Proudfoot, just back from meetings in Ireland with farming leaders and politicians.

In about one year, restrictions on milk production will be lifted in the EU, and the Irish are moving to take advantage of this, Proudfoot says. Milk quotas were imposed in 1984 to limit production in Europe where excess production was referred to as ‘milk lakes’.

New Zealand must move quickly to counter any marketing push by Irish and other EU milk producers, Proudfoot says. The Irish in particular are looking to increase stocking rates and grow production.

New milk processing plants are being built and the Irish are seeking new markets.

“I am told that there is feeling of optimism that the Irish dairy industry is about to be unleashed.

[They produce] a high quality, high premium prod-

uct similar to [New Zealand’s] and they’re are going to look at the same growth markets we sell in. New Zealand is going to face more competition in key markets.”

The Irish are well-advanced in articulating a sustainability story and New Zealand’s story must be as good as theirs in that respect, Proudfoot says.

The Irish scheme ‘Origen Green’, which most Irish producers have signed up to, deserves notice

by New Zealand.

“It extends back onto the farm. Each farm effectively gets its own carbon footprint done, and learns how it can reduce its carbon footprint by improving productivity and profitability. It’s tied to improving commercial outcomes, a market-driven scheme designed to meet the needs of consumers.

“Whichever way you look at it we don’t have anything we can articulate in the same way. We need to work out how to do that – and quickly.”

Proudfoot says the 100 % Pure brand on which New Zealand hangs its hat is fine for tourism and few other things, but inappropriate for the primary sector.

Ian Proudfoot

“We need to have a brand that is unique to our food production and to tell the story about what is most important [there] – its safety and its efficacy. There also needs to be a baseline sustainability standard which people must meet or lose their license to operate.”

New Zealand hasn’t had to “work too hard to get customers” because of its unique product offerings.

Now we must understand what our customers need and meet that requirement.

“We need to work a bit harder, particularly in understanding what customers needs are and how we can articulate the attributes,” he says.

EU milk tipped for global market THE END of milk quotas in Europe from 2015 will Loader wagon chops, handles with ease.

PG.34

NEWS ������������������������������������������������������3-19 OPINION ��������������������������������������������� 20-21 AGRIBUSINESS �����������������������������22-23 MANAGEMENT ������������������������������ 24-29 ANIMAL HEALTH ��������������������������30-33 MACHINERY & PRODUCTS �������������������������������������� 34-35 TRACTORS & MACHINERY ����36-38

add another dimension to the global milk supply, says Fonterra chairman John Wilson.

Wilson told Dairy News there are differing views on whether milk supply out of Europe will increase once quotas are lifted.

Given that EU’s milk consumption is relatively stagnant, he believes increased production from the bloc will end up in the global market to meet growing demand.

He says Fonterra‘s joint venture with Netherlands-based A-ware Food Group is an example of the co-op tapping into the changing EU dairy environment.

Fonterra and A-ware Food Group are developing a new cheese plant and dairy ingredients plant

in Heerenveen in the north of the Netherlands.

A-ware will operate a cheese plant and Fonterra will operate a dairy ingredients plant alongside it.

Cheese will be produced for A-ware’s customers in Europe and the whey and lactose produced will be processed into premium nutrition dairy ingredients for Fonterra’s global customer base.

A-ware will be sourcing milk from Dutch farmers, who are expected to ramp up production when the milk quotas go. Wilson says this could add another billion litres of milk to Fonterra’s global pool.

Wilson expects global growth in milk production to be 0.5% higher than a year ago.

Global dairy demand is forecast to grow by 120 billion L by 2021, 40 billion L of that in freely traded markets – largely the emerging markets. New Zea-

land is expected to see 2% or 3 billion L growth during the same period.

Wilson says this highlights the importance of Fonterra’s strategy to support New Zealand milk by ensuring access to global milk pools so we can accommodate demand growth.

Current global demand for milk products is growing at just over 2% per annum. In China, demand is expected to grow 7% by 2020 – but milk supply will grow by only 4%.

China’s dairy industry is changing rapidly, with evidence this year of consolidation at the farming and manufacturing levels of the supply chain, says Wilson. Forecasts predict a modest recovery in global milk production, with some early signs evident. – Sudesh Kissun

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DAIRY NEWS DECEMBER 10, 2013

4 // NEWS

Farmer facing court over bush damage PETER BURKE peterb@ruralnews.co.nz

THE QUEEN Elizabeth

II Trust says the action of a Canterbury dairy farmer who has extensively damaged two rare, covenanted woodland remnants on his farm is “unprecedented” in the trust’s 36-year history. The QE II Trust is charged with protecting rare bush areas.

Such is the damage that the trust has won a High Court injunction to stop Roel Wobben using the area for any part of his

large dairy farming operation until the court rules on the matter next year.

Trust chief executive Mike Jebson told Dairy News that Wobben one year ago bought the farm containing the covenanted area; he was aware of the rules on the protection of rare woodland remnants.

Jebson says when he and other trust representatives visited the farm in June this year they discovered Wobben had already cleared part of the covenanted area.

“We have been trying to reach an agreement with

Before and after pictures showing alleged damage to the convenants in Canterbury.

the landowner about what needs to happen to restore the covenant. The major issue is that we wants to continue to run his irrigator through the covenant.

“He destroyed the vegetation to allow the irrigators to run through the covenant to irrigate all the land around. He intended to plough up the covenant after removing the vegetation and bring that into pasture as well.

We have prevented him ploughing up the covenant but he is still wanting to run the irrigators through the covenant.”

Jebson says the landowner is driven by his business interests and has taken the action as the easiest way to run an irrigation system. He could have done it a different

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The High Court injunction now prevents Wobben from doing anything on the covenanted land without

FONTERRA’S HEAD of milk supply says the coop-

erative is disappointed the QEII Trust has had to take High Court action against Canterbury dairy farmer Roel Wobben for damaging two rare woodland remnants to run an irrigator through his farm.

Steve Murphy told Dairy News that as soon as Fon-

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Wobben restore the covenant to its original state, the cost of which could be substantial.

Jebson says landowners mostly respect covenants on their properties.

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CALLING ROEL WOBBEN DAIRY NEWS called Roel Wobben to ask him about the QE II Trust taking him to court.

We wanted to hear his side of the story about why he has damaged the covenanted bush, whether he was prepared to reinstate the damaged bush and whether he had any regrets about his actions.

Wobben declined to comment, wished us “good evening” and hung up.

terra discovered what was happening it got involved with the trust and the farmer to help solve the matter.

“It’s unfortunate the issue has now gone beyond that to a court situation…. You’d hope people could get together and work out a solution.”

Fonterra will keep a watching brief and when the court rules will then do whatever is required.

Murphy denies assertions that Fonterra helps farmers who flout the law get off the hook. “We have this year sat down with suppliers and pointed out that unless something is rectified [promptly] we will not be collecting their milk. We certainly play that card if we have to, but for all of us a much better outcome is to work with the farmer to provide a solution. That’s a win-win for everyone as opposed to a single outcome.

“When a farmer is not willing to play ball we use the ultimate sanction: we say to them ‘unless you are prepared to fix this particular issue we will not collect your milk’; and we have done that. We have delivered legal letters to farmers saying that in short order we require you to sort this out.”

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DAIRY NEWS DECEMBER 10, 2013

NEWS // 5

Christmas bonus on cards?

ANDREW SWALLOW andrews@ruralnews.co.nz

COULD FONTERRA,

and indeed other processors, be about to announce a Christmas bonus in the form of a raised payout forecast?

After last week’s 3.9% gain in prices on Globaldairytrade it looks increasingly likely – that’s if it hasn’t already happened by the time you read this article.

Whole milk powder was up 3.4% to average US$5035/t with forward sales positions particularly firm, as they were for skimmed milk powder which added 5.6% to average US$4791/t.

“The forward curve is starting to point up a bit which is a positive,” commented BNZ economist Doug Steel to Dairy News.

While he still thinks prices will ease at some

point in 2014, an ever increasing proportion of this season’s production will have been “locked down” at these historically high levels which, with a slightly weaker New Zealand dollar in recent weeks, “suggests there’s more upside”.

“I’m reluctant to put a figure on it but we do see upside on [the current milk price forecast of] $8.30/kgMS.” Very strong demand by China and the Middle East – the latter likely buoyed by firmer oil prices – is driving the market and is to date outweighing the already growing and forecast-to-increase supply from the US and Europe, as well as New Zealand.

“That’s what makes this auction quite important. These buyers know there’s more production out there and the outlook for the next twelve months is for higher pro-

DAIRY DRIVES TRADE SURPLUS DAIRY EXPORTS were a key factor in New Zealand’s best quarterly trade figures for 40 years, data released last week shows.

“Both the terms of trade and export prices have been on the rise since the start of this year, reflecting higher dairy prices,” noted Statistics New Zealand prices manager Chris Pike.

For all goods exported prices rose 8.9% in the quarter ending September 30 while seasonally adjusted export volume fell 2.1%, reflecting a 24% rise in dairy export prices compared to the quarter ending June 30 and up 46% on a year previously; seasonally adjusted dairy export volume fell 2.7%, the fourth consecutive quarterly fall. The June quarter volume was back 16%.

duction and yet we saw higher prices. That suggests demand is increasing faster than supply.”

It also suggests a structural shift in the traditional cycle of dairy prices – the cycle is still there, it’s just going to be centred on a higher level. Where that is going to be is the big question.

Steel says BNZ “still has $6.70 on the board” for the 2014-15 season but says the longer these prices hold, the more that starts to look too low.

“But it’s such early days.

They’re not even into sell-

ing any product from next season yet.”

As for when there might be a shift in the processors’ forecasts

for the current season, last year and in 2010 Fonterra updated its forecast

on December 10, while in 2011 there was an update December 13. “So it’s a

reasonable guess it will be [this] week and there’s definitely upside risk.”

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DAIRY NEWS DECEMBER 10, 2013

6 // NEWS

Bank loans underpin farm sustainability TONY HOPKINSON

THE ASB Bank is helping farmers to meet sustainability and compliance obligations via a ‘rural environmental compliance’ loan (RECL).

The scheme was discussed at a recent ASB Bay of Plenty branch field day at Cawte Farms Ltd, near Te Puke.

Visitors also saw the new dairy effluent and feed pad processing and disposal set-up on the Cawte farm.

“The money is available at 3.8%,” said ASB Bay of Plenty rural banking manager Brian Sparrow. “That is the cost to the ASB; we do not add any margin.”

The loan is available to all farmers – dairy or drystock – to a maximum of $200,000 for no longer than five years.

No establishment fee is charged.

“We see farmers using the money to… fence waterways and increase effluent storage – two important steps to

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ASB rural managers Trevor Hurley (left) and Andrew Cutfield at the fieldays.

protect and enhance our waterways,” said ASB senior rural manager Bay of Plenty, Trevor Hurley.

Farmers also use the loans to pay for water meters, water and dairy shed system upgrades to comply with ‘variation 6’, and stock underpasses.

“I see the money also helping farmers to plan ahead – like the Cawte farm we are on today – to help future-proof their farms as increasing and changing regulations come into play,” says Hurley.

The Cawte family farm, owned by

Barry and Catherine and contractmilked by son James and his partner Katie, is 185ha (eff) of rolling to steep country with another 18ha leased. They plant 53ha of maize for silage.

The farm milks 600 Friesian and Friesian-cross cows and next year will change to calving a third of the cows in autumn. The 54-bail rotary is automated and one person milks the whole herd. James employs two permanent staff.

They have recently installed a large feed pad and 39 x 6 x 2m holding bunkers for shed and feed-pad effluent with weeping walls. The green water is pumped to a holding pond 30 x 30 x 4m.

This is pumped back to holding tanks for flood washing the yards, and the balance is spray irrigated on the farm.

Solids from each bunker will be emptied once a year and spread on cropping paddocks. @dairy_news facebook.com/dairynews

IN BRIEF Fert prices down DESPITE BUOYANT global dairy prices, demand for fertiliser internationally is weak and oversupply means markets have eased, says Ballance AgriNutrients which cut its prices on nitrogen, sulphur and phosphate products late last week.

“We always have one eye on prices and one on what the markets are doing, so our shareholders and customers get the best deals, especially at times of high demand,” said chief executive Larry Bilodeau, announcing the cuts.

Potash prices will be marked down in the new year.

“We have secured a new shipment of potash at a lower price, and when this arrives in late January much lower prices will be applied.”

As Dairy News went to press Ravensdown hadn’t followed Ballance’s move but the Christchurch cooperative said it would be taking all steps to ensure it is competitive and passes price savings to farmers.

DAIRY NEWS DECEMBER 10, 2013

NEWS // 7

Breathing space for MG AN ORDER by Australia’s Takeover Panel has granted Murray Goulburn breathing space in the frantic three-way bidding for Warrnambool Cheese and Butter.

The panel’s order on November 29 prevents Saputo – MG’s rival for WCB – from processing shareholder acceptances.

This halt will remain in place until the panel considers the application.

WCB shareholders may still complete and send acceptances of its offer, but Saputo cannot process them.

Murray Goulburn applied to the Takeovers Panel after Saputo increased its offer for WCB shares from A$9/ share to A$9.20/share but removed the dividend component announced in its earlier offers.

Saputo had received offers equivalent to 10% of

WCB before the Takeovers Panel order.

Murray Goulburn said Saputo misled WCB shareholders with its revised offer. Its previous bid included two fully franked special dividends paid

by WCB. This included A46 cents a share if Saputo received a minimum of 50.1% of WCB shares or A85 cents/ share if Saputo acquired at least 90% of WCB. WCB has responded to the Takeovers Panel application, saying it “disagrees with the basis for that application and will respond to it in accordance with the panel’s procedures”.

MG has raised its bid to A$9.50/share and has started its process with

the Australian Competition Tribunal (ACT). The tribunal has provisionally reserved February 10 to begin any public hearing of the application.

The ACT said it had also given a copy of MG’s application and relevant

documents to the Australian Competition and Consumer Commission (ACCC). The application was accompanied by extensive paperwork.

MG hopes to get a decision from the ACT

by February 28. The bidder’s statement also pro-

vided more details on the co-op’s intentions for the merged business, including potential expansion of plant in the Warrnambool region.

Saputo issued a statement on the Australian Securities Exchange which responded to the Takeovers Panel notice, saying the interim order was not necessarily indicative of the merits of the application.

Murray Goulburn’s offer of A$9.50 cash per WCB share values the company at $533 million.

The co-op said this price represents an 111% premium over the closing price of A$4.51 per WCB share on the ASX on September 11.

It also offered a 6% premium to Saputo’s revised

A$9 cash per share offer announced to ASX on November 25 and a 6% to the implied value of Bega’s offer, based on the closing price of Bega share on the ASX on November 27.

Bega reminded Warrnambool shareholders via the ASX earlier this month that Bega will pay WCB shareholders 1.5 of its own shares plus A$2 cash within eight business days. This is the equivalent of almost A$9 a share.

Bega’s bid is the only one of the three offers that is live and can be accepted

by Warrnambool shareholders. “Interim orders prevent Saputo Dairy Australia processing any acceptances received under its bid for Warrnambool,” Bega said in an ASX statement. “Bega Cheese’s offer is unconditional and remains open for acceptance by Warrnambool shareholder.”

TAF-style share listing AUSTRALIAN DAIRY co-op Murray Goulburn managing director Gary Helou wants to put the cooperative’s external capital raising plan to its suppliers at an extraordinary meeting by mid-2014.

It resembles the Fonterra TAF plan which raised NZ$500 million via the issue of non-voting shares. But Fonterra’s scheme, launched last year, took five years from its inception in 2007.

MG has wasted little time in canvassing its shareholders about the proposal, holding supplier meetings early this month.

Helou told the annual meeting the co-op will further develop proposals for the capital restructuring before more supplier meetings in March next year to fully discuss the plan. “Depending on the feedback received from supplier-shareholders, MG will plan to hold an extraordinary meeting in May,” Helou says.

Subject to shareholder approval, MG will launch the scheme by July 1.

These changes would coincide with an offer to external investors to acquire units in a listed unit trust that would pay a dividend equivalent to dividends paid to supplier-shareholders.

The unit trust would be expected to be listed on the Australian Stock Exchange by July 1.

Former MG chairman Ian MacAulay cautioned the cooperative at the annual meeting on implementing the New Zealand model. He said Fonterra’s TAF was “born and bred in a whole different circumstance than where we are now”.

26/11/13 3:53 PM

DAIRY NEWS DECEMBER 10, 2013

8 // NEWS Westland Milk plant in Hokitika.

Double milk peak for Westland ANDREW SWALLOW andrews@ruralnews.co.nz

WESTLAND MILK

Products has seen a double peak in production

this season, with 3.7m L pouring in on October 18 and, after a dip in between, again on November 17.

Those figures compare to last year’s peak 12% lower at 3.25m L on

November 12.

Commenting on the season’s outlook at the cooperative’s annual meeting late last month, chief executive Rod Quin predicted sales of 122,000t

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of product generating sales revenue “in excess of $750 million”.

The current forecast operating surplus of $7.60 - $8.00/kgMS before retentions will be recalculated in December and any revision in forecast announced after the board meets December 16.

At the meeting shareholders strongly supported changes to the dairy cooperative’s constitution, including four-year terms for directors and abolition of ward structure.

“The passing of all resolutions by voting majorities from mid 80% to high 90% is very pleasing,” chairman Matt O’Regan told Dairy News. “ It also reflects the comprehensive and rigorous 18 month consultation process that the constitutional review committee went through.”

The changes ensure the constitution remains fit for purpose and sets the platform for future success, he says.

Quin says operationally the constitutional change allowing for a third independent director will allow for an extra skill set at the board table which could help further strategy, for example, a director with experience in developing and managing partnerships.

“Four-year terms would provide more stability and, from a management perspective, less development of new directors,” he adds.

He told the annual meeting that progress on a new, more efficient 30MW, $23m boiler is ahead of schedule, and he touched on the plan for a new $100m, 3.9t/ hour dryer at Hokitika (Dairy News, Nov 26) and possibly a UHT plant at Rolleston.

Last week, he told Dairy News from China that target markets for UHT would be there and other South East Asian nations where consumers drink UHT rather than fresh milk.

“At this stage we are talking with customers who may also be possible investment partners.”

UHT production would be consistent with Westland’s strategy of developing nutritionals, which has not changed, he added.

The location of the new dryer in Hokitika, rather than Rolleston where Westland already has consents, is down to economics of building on an existing site versus Rolleston where costs to build infrastructure would be far higher.

“The option to develop Rolleston and the consented drier remains just that, an option,” he stressed. “Expanding from UHT consumer white milk packs to develop a range of liquid UHT nutritional products has been part of the strategy.”

Quin told the annual meeting that international markets, China in particular, continue to demand safe and traceable food.

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WESTLAND’S NEWLY appointed independent director, Keith Smith, lives in Auckland and was a chartered accountant for BDO and its predecessors for 27 years, specialising in corporate re-organisation and re-structuring.

He’s now a full-time director with a range of companies including Goodman NZ as chairman, The Warehouse as deputy chair, and Mighty River Power. Previous roles include chairman of Tourism Holdings, PGG Wrightson, NZ Farming Systems Uruguay and Lowe Corporation.

He is a past-president of the New Zealand Institute of Chartered Accountants.

Smith’s appointment was approved at the meeting where retiring independent director David Spence stood down after 12 years.

DAIRY NEWS DECEMBER 10, 2013

NEWS // 9

Synlait Farms takeover deal nears ANDREW SWALLOW andrews@ruralnews.co.nz

SHANGHAI PENGXIN

is only two regulatory steps away from securing a 75% stake in 13-farm Canterbury dairy business Synlait Farms, i.e. Overseas Investment Office approval and similar Chinese Government clearance.

The deadline for those clearances, as the deal stands, is January 19 but Synlait Farms chief executive Juliet Maclean, who is also a founder shareholder of Synlait Farms, told Dairy News the deadline can be extended.

“The process is highly regulated by the Takeovers Code but we do have some flexibility beyond January 19.”

Maclean’s comments follow Synlait Farms’ announcement late last

month that 91% of its shareholders had accepted the $2.10/share offer of SFL Holdings, taking it past the 90% threshold for the deal to proceed.

As of last week “about 96%” of shareholders had accepted, Maclean said.

SFL Holdings is 75% owned by Shanghai Pengxin’s wholly owned subsidiary New Zealand Standard Farm, with Maclean and fellow Synlait founder John Penno holding the other 25%.

Maclean, Penno and the third major founder shareholder remaining in Synlait Farms, Ben Dingle, made a pre-bid commitment to sell their combined 50.18% stake into the holding company.

Dingle will not be part of the new structure.

The balance of Synlait Farms was owned between about 100 smaller shareholders. Offering

domestically with an IPO in 2009 didn’t succeed.

Synlait Farms is encouraging the few remaining shareholders who haven’t accepted the $2.10 offer to do so before the deadline of December 20. Maclean says SFL Holdings will exercise its

Juliet Maclean

them “an exit at a really good value” was one of the drivers for the deal, as was making the business “financially robust” while retaining existing staff and management, says Maclean.

Shanghai Pengxin has also promised an injection of $20m for farm development on completion of the deal.

Shanghai Pengxin’s offer was one of five received by Synlait Farms, all of which involved some overseas ownership (Dairy News, October 29).

Attempts to raise capital

right to compulsory acquisition after that.

She’s hopeful OIO clearance will be forthcoming as they have had “positive feedback” from the New Zealand regulator but she admits the Chinese regulatory process is a “bit more of an

unknown.”

For every day the offer extends beyond December 31 shareholders will be paid an increment on the $2.10/share to reflect the growing value of the farms as the production season progresses. “It was to give shareholders con-

fidence in case the deal was delayed,” explains Maclean. “It works out at about 6c (extra) per month.”

She says she’s received no negative feedback on the farms. @dairy_news facebook.com/dairynews

ON TRACK TO FINANCIAL TARGETS SYNLAIT MILK, the processing arm of Synlait which split from the farms in 2010 when China’s Bright Dairy took a 51% stake, last week held its first annual meeting since its sharemarket listing in July.

“The IPO was successful and we are very pleased to welcome all new shareholders,” said Synlait Milk managing director John Penno.

Chairman Graeme Milne said the firm’s “on track” to achieve financial targets set during the IPO and will increase produc-

tion capacity 40%, including introducing lactoferrin manufacture and blending and packaging of infant formulas.

“Our focus is on continuing to increase the proportion of value added products in our ingredients business, and increase the volume of our infant formula and nutritional product sales.”

The lactoferrin plant is expected to start production in February and a 22,500m² capacity drystore to be completed at the end of March. A

blending and canning facility is expected to be commissioned in June.

Resource consent applications for a new large-scale infant formula spray drying plant have also been lodged.

The meeting approved the re-election of Graeme Milne, John Penno and Sam Knowles as Synlait Milk directors, but Fairfax media reports a call was made from the New Zealand Shareholder Association that independent directors be appointed.

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DAIRY NEWS DECEMBER 10, 2013

10 // NEWS

Three vie for dairy woman Dairy Women’s Network (DWN) has announced the three finalists for the 2014 Dairy Woman of the Year Award: Charmaine O’Shea, Julie Pirie and Joyce Voogt.

Led by DWN and sponsored by Fonterra Milk Supply, the award includes a scholarship to the 10-month Women in Leadership scheme delivered by Global Women, valued at $25,000.

DWN trust board chair Michelle Wilson said the calibre of the three finalists was again exceptionally high. The 2014 winner will be announced at a gala dinner at the network’s annual conference on March 19 in Hamilton.

JULIE PIRIE JULIE PIRIE has been in the dairy indus-

try all her life, and her family for generations.

She studied agriculture at Massey University after growing up showing dairy cattle and belonging to Young Farmers.

After graduating she spent 10 years as a consulting officer to farmers in Otorohanga, Hauraki Plains and Coromandel. At this time Pirie and husband Brian bought their first farm.

Piries won the Hauraki Plains/Coromandel Dairy Farmer of the Year competition in 1997, and have run a productive and profitable business for many years.

Quitting consulting to start a family, Pirie focused on working on her farm. The couple grew their landholding from 50ha to the present dairy platform and support block of 312ha using bank finance.

Pirie has been involved with the LIC Shareholders Council, run discussion groups for DairyNZ in areas without consulting officers, and has been a guest speaker at seminars run by DairyNZ, banks and DWN. She was recently appointed to the Fonterra Shareholders Council. She is a school board trustee and is president of the Hauraki Plains Rural Show which she helped set up.

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PENGXIN NEW Zealand Farm Group Limited (PNZFG) which runs the former Crafar farms has posted a $1 million dollar loss for its first seven months of operation.

The report to the Overseas Investment Office (OIO) reveals some of what has happened to the company in that period – but not all – with some key numbers blanked out. It names the seven directors of the business as former Fonterra director Greg Gent (chairman), Rick Braddock, Terry Lee and Yaohua Lu representing PNZFG, and Bill Bayliss, Marise James and Chris Kelly representing Landcorp.

The company has 14,065 cows in milk but the report does not quantify the milk solids produced. The company terminated nine variable and two 50:50 sharemilking agreements and one contract milking position.

Revenue was $10,481,240 for the year ended June 30 and expenses were $11,497,408, leaving a deficit of $1,008,206. The drought affected production and farm working expenses were up.

This in some ways mirrors what happened to Landcorp during the drought. In July its dairy production in the central North Island was down 18% on the previous year and overall production nationwide was down 4%.

Landcorp took a hit from the drought, it’s overall profit for 2011/12 down to $27 million; the previous year’s was $42 million.

DAIRY NEWS DECEMBER 10, 2013

NEWS // 11

of the year title JOYCE VOOGT

Get more out of summer with SustaiN Nitrogen is the most effective way to grow more

JOYCE VOOGT graduated as a veterinarian from Massey University in 1985 and worked two years in a sheep and beef practice before travelling overseas for two years.

She has since been a milker, sharemilker, dairy vet and farm owner, passionate about the dairy industry and the opportunities it offers young people.

She left dairy clinical practice in 2011 to join the newly established LIC reproduction solutions team that helps dairy farmers understand and improve the reproductive performance of their herds.

She has learned from such industry projects as the Headlands Upper Waipa Hill Country Dairy Project on sustainable dairy farming, and the Dairy Business of the Year Awards in which the Voogts were finalists in 2013.

Voogt enjoys mentoring young people in dairy farming and veterinary work and promoting knowledge transfer to farmer groups.

She has taken every learning opportunity that has come her way, convinced of the value of farmers’ collective knowledge and enterprise, and willingness to share knowledge with each other.

Voogt is inspired by creative ideas and practical solutions she discovers in the industry.

grass when you need it – and your best feed source just got better. SustaiN is a new generation nitrogen fertiliser that gives you more growth for every unit of nitrogen applied. It’s the smart way to maintain milk production through summer by holding pasture quality for longer as well as increasing crop yields.

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tant specialising in farm accounting, and an equity partner in a dairy farm with her brother Shayne.

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She has a passion for improving the profitability of the New Zealand dairy sector through strong financial, environmental and people performance.

Her Northland accountancy practice of 17 years has clients nationwide. She has been involved in designing and developing the DairyBase database. She and her brother Shayne this year won the Northland Supreme Ballance Farm Environment Award. She had previously won Northland Sharemilker of the Year in 1993 and the North Island AC Cameron Award in the same year.

O’Shea supports the industry in its training and educating on the business aspects of dairy farming, at national, regional and local levels.

She has presented at local field days and national conferences.

This year she became a trustee of the AgriWomen’s Development Trust.

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DAIRY NEWS DECEMBER 10, 2013

12 // OPINION

Negotiation: letting it happen

Farm sale negotiations must include open exchange of information.

I’VE BEEN involved

recently in negotiations for sale and purchase of some substantial farming businesses. It’s always satisfying to see ‘win-win’ achieved and witness the inevitable differences of

expectations, opinions and negotiation styles managed to advantage.

This reinforces my view that all good business is more about ‘letting things happen’ than ‘making things happen.

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When people with complementary aspirations and plans share these so as to recognise their synergies and manage their differences, significant value is added.

An early priority for successful negotiation is to evaluate the personality styles of those involved and adopt an approach they can best engage with. It’s also important to develop agenda that achieve the highest quality communication without any party dominating. Given the emotion involved in selling major assets such as farms which may encompass a lifetime’s work, it is understandable that at some stage participants’ sensitivities will be heightened by these high-stakes discussions.

As with any courageous conversation, success will depend on timeliness, a structure that ensures the discussions take place in the right environment and meetings are led by a facilitator capable of navigating all areas that need to be agreed.

This will usually involve a series of meetings. The early stages will be to establish rapport and exchange information so that by being better informed about each party’s objectives a deal can be formulated to deliver preferred outcomes. This phase includes helping people to understand that the best result is likely to come from revealing rather than concealing facts and perceptions.

Management of these exchanges will be enhanced by ensuring meetings are not allowed to drift. I have seen many otherwise constructive conversations lose their shape by going 10 minutes too long. I work hard to secure progress by bringing meetings to a close and agreeing to reconvene to address the next stage once tangible progress has been made. This allows agreement to occur through small steps rather than one major decision which can fail because of fatigue or communication breakdowns at key moments.

I also encourage protocols that allow either party to request an adjournment so there can be time to reflect and talk privately and ensure views are aligned.

Some negotiators adopt a position that discloses the least possible.

This appears to be built on a belief that to succeed in negotiation you should give nothing away.

My experience is that this results in an unhealthy focus on price that often results in lost opportunity.

At its worst it is intimidating and promotes distrust that risks conflict rather than collaboration.

Combining a more measured approach with open exchange of information helps build a business case on which the parties can assess value.

This requires patience and time.

This is another reason for having a series of meetings. Manageable, focused exchanges enable relationships to grow, credible information to be exchanged and time allowed for buyer and seller to reflect and decide just where value lies.

Breaking the process into smaller steps reduces the potential for tensions to develop and builds the important trust component in the negotiation.

Finally, the typical trading of concession for concession in the negotiation needs to be complemented by identifying opportunities to collaborate and synergise.

Successful negotiation is about allowing things to flow, giving the process time and maintaining a communication environment focused on solutions and mutual success rather than dominance and disadvantage. It’s something I find immensely rewarding and an area where serious value can be added.

• Kerry Ryan is a Tauranga agribusiness consultant. www.kerryryan.co.nz

DAIRY NEWS DECEMBER 10, 2013

FONTERRA SHAREHOLDERS FUND AGM // 13

Co-op eyes food service trade PAM TIPA

BRAZILIANS BUY

2.5 million pizzas every Sunday, yet Fonterra does not have a food service division in South America, says Fonterra chief executive Theo Spierings.

He saw it as a big opportunity similar to the “fantastic” food service business the co-op has in Asia. “We have the [intellectual property] from Palmerston North, we have the business model.”

Generally in overseas markets, if Fonterra can go into a country with New Zealand milk, then it will invest in local milk pools.

An example is China: “We go local if we have a good

import business out of New Zealand; then we have two milk pools – the local milk pool and New Zealand’s, connected to a geography – then we start playing the value game.

“We don’t do commodities only; we want to do branded business, we want to be present in food service and we want to go to nutrition for the older people and infant nutrition. Everybody, in every geography, is working on ‘turning the wheel’ and we are investing heavily in business like food service and consumer branded business in markets again where we sell New Zealand milk.”

Referring to why Fon-

SUSTAINABILITY LEAP NEXT YEAR FONTERRA MAY be 10 years behind other dairy nations on sustainability – but it can catch half that up next year, says chief executive Theo Spierings.

And it’s 20 years ahead in its business model, he says.

“Europe is only going to take subsidies and quotas away next year. That happened 20 years ago in New Zealand. An average farm in my country is only 60 cows, here it is 400 cows. We are way ahead of the game – scale on farms, scale on factories.”

New Zealand must step up the pace of sustainability, Spierings says, but he does want to offend farmers because they are doing a lot of work. Plans for sustainability have to connect with strategy. Not only the farms, but the factories and logistics are all behind.

“I promise you with the work that is in front of us, of the 10 years behind we will catch up more than half in the coming year. We launch our sustainability 10-year plan in February.”

The onfarm programme Supply Fonterra has been launched with clear rules and regulations on sustainability. It is not a completed piece of work.

In answer to a question at the shareholders’ fund annual meeting on animal welfare issues, Spierings says “we need to have a debate within the co-op as to what does compliance mean and what doesn’t it mean.

There needs to be discussion ‘in the family’ of the co-op, not rushing into public statements.”

terra is not in India: “India is closed; we can’t sell one pack of milk powder so we aren’t investing there because we don’t want to bring farmers’ money to a geography where we don’t sell New Zealand milk.”

China, Brazil and Indonesia are key strategic markets. Everyone is talking about infant nutrition but a bigger opportunity is the ageing population: 400 million people in these

it a

four geographies (including India) are reaching 65 years plus in the coming 10 years.

China will be the number-one economy by 2016 and could even reach it next year, says Spierings.

Brazil is fifth, Indonesia seventh and India third.

“Who would have thought 10 years ago that these four countries would be in the top 10 of the world?” he commented.

Fonterra wants a slice of Brazil’s lucrative pizza trade.

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DAIRY NEWS DECEMBER 10, 2013

14 // FONTERRA SHAREHOLDERS FUND AGM Theo Spierings

High milk price not a bar to earnings PAM TIPA pamelat@ruralnews.co.nz

FONTERRA BELIEVES in the long

run it can pay farmers a high milk price and also increase overall earnings for the cooperative.

They key is “turning the wheel” to more prod-

ucts of greater value, particularly in food service, and nutritional products for the old and young, said chief executive Theo Spierings at the Sharehold-

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ers’ fund annual meeting.

He agreed with comments from the floor that EBIT (earnings before interest and tax) has been ‘flatlining’ at about $1 billion in the past five years.

However they were heading for $1.2 billion in the last season, but the drought wiped $200m off earnings for New Zealand milk.

Spierings says the ‘wheel’ in his strategy plans is about shifting volume to higher value, which means return on capital over time has to improve. Both milk price and good return on capital can be achieved if you “drive the wheel well”.

Chief financial officer Lukas Paravicini says Fonterra believes it can do both. The milk price is regulated by an external framework and cannot be influenced, he points out.

“What Fonterra will try to do is get a premium on that milk price. So we will use some of the ingredients we produce in food service or higher addedvalue products, then we can obtain a premium return on capital that’s higher than what we can

do in ingredients.”

A unit holder said the share price has dropped from $8 to $6.50 recently and his perception is the price that’s paid to the farmers is having an influence on that share price.

Shareholders fund management company chairman John Shewan says three facts had had an impact in the last three months: the drought, the milk price and the WPC80 recall issue. There have also been a number of floats such as Meridian Energy. “There are a number of headwinds that have impacted on the unit price in recent weeks.”

Spierings says the high milk price related to huge demand from China with local production there lost through foot and mouth disease. The demand for milk powder and other milk products had driven the milk price to an alltime high.

The non milk-price products stay behind and the gap has been wide for five months with an impact on profit and loss.

This temporary pressure was reflected in the share price.

CO-OP TO UPDATE PAYOUT FORECAST FONTERRA WILL provide an updated forecast this week, says Spierings. But the pressures which pushed its current forecast to a record $8.62/kgMS (plus 32c dividend) still remain.

Under DIRA obligations the cooperative must make a forecast by December 15 and an updated milk price, advance rate and dividend forecast will be announced at some stage after the board meeting on December 10.

The gap between milk price products and non-milk price products is still very high so it is affecting the profit and loss and also means high input costs for Fonterra’s branded business, Spierings says.

“We cannot translate that straight to the market. For example if we were to translate the high milk price to supermarket into Anchor brand milk, the price would go up from $4 to $6 [roughly]. We are not doing that because if we had a price of $6.80 we would lose a tremendous volume of consumers and we would have to face the cameras.

“I know who is going to face the cameras,” he joked.

He says they price what the market can bear, in New Zealand and overseas. “It means temporary pressure on results. We have to make sure we see volume growth; that’s the most important going forward,” he says.

DAIRY NEWS DECEMBER 10, 2013

FONTERRA SHAREHOLDERS FUND AGM // 15

Danone claim likely to end up in court FONTERRA’S ATTEMPTS to reach a

John Shewan addressing the inaugural annual meeting of Fonterra Shareholders Fund.

Admirers may replicate TAF – fund chairman THE FONTERRA Shareholders Fund is a unique structure and has received a lot of attention globally, says fund chairman John Shewan.

“I would not be surprised if we see it replicated in other parts of the world,” he told the fund’s first annual meeting in Auckland last week.

It has just marked its first year after being launched on November 30, 2012, raising $525m at an issue price of $5.50. “When the fund was launched last year some commentators expressed concern about its complexity,” Shewan says.

“Although the legal structure could be described as complex the principles are straightforward. The way the fund has operated over the

first year shows that both investors and analysts have very quickly got up to speed with the way it operates.”

Two dividend distributions over the past year have totaled 32c, a yield of about 5% on the current unit price.

All financial returns mirrored those of farmers. In April this year a 1:40 bonus issue resulted in the issue of 2.4m new units.

Capitalisation of the fund on the current unit price is about $693m which is just under 7% of Fonterra’s total capitalisation. Units have traded from $6.37 to $8.09 over the last 12 months. Liquidity in the units has been high – in the top 10 of the NZX most of the year.

Ninety percent of units are held

by institutional and retail holders split equally between New Zealand and Australia, 5% are UK based and the balance is spread between Asia and the United States. A number of key institutional investors are on the register: two Australian funds are substantial holders – fund managers Caledonia and Perpetual. Each holds at least 5% of the units, as does Swiss company UBS. Fonterra board chairman John Wilson says the Fonterra Shareholders Fund was the most liquid stock on the NZX in the last financial year.

Since June, 78m units have been traded in the fund with average trading of 600,000 units per day.

– Pam Tipa

commercial solution to Danone’s claims over the false botulism scare are not working out, says Fonterra’s chief executive Theo Spierings.

That means Danone’s reported claim of up to $320m in damages is more likely to go through the courts.

“We have worked on a commercial solution very, very hard for months,” Spierings told the Fonterra Shareholders’ Fund annual meeting last week.

“We have tried to have a commercial solution and give them security of supply. With that the value is really shared between partners in the future.

“That appears to be a route which is

not working out. Then you have to go back to the contract because there are only two ways: you solve it commercially or you go legal. If you go back to the contract, [as] we have said before in the media, we have no liability in the contract.”

Spierings says it could take time if it goes the legal route.

Out of eight affected customers the cooperative has closed out six and is very close to a deal with another nutritional company affected by the recall.

That leaves only Danone. A commercial solution definitely does not mean paying upfront, it means creating value in the future and sharing that value, says Spierings. – Pam Tipa

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DAIRY NEWS DECEMBER 10, 2013

16 // WORLD

Oz politicians urged to repeal carbon tax to repeal the carbon tax bill before Christmas.

The Australian coalition Government’s carbon tax repeal bill last month passed in the House of Representatives. However, the Government doesn’t have a majority in the Senate where Labor and the Greens are expected to block the repeal.

Chair of the National Farmers’ Federation sustainability committee, Gerald Leach, says it has not supported the carbon tax due to the unnecessary costs it adds to Australian farm businesses, agricultural input suppliers and food processers.

“Australia’s farmers have led the way in emissions reductions without the carbon tax, yet agri-

culture remains a heavily affected sector due to the flow-on costs of the carbon tax applied to the suppliers of electricity, fertiliser, chemical and fuel,” Leach says.

Work by the Australian Farm Institute in 2008 suggests the average farm business, depending on the commodity produced, will incur extra costs of up to $10,000 per annum. For example, work undertaken by the sugar industry suggests increased costs of the carbon tax of some $20 million, resulting in lost farm profitability due to higher input costs.

“With coverage for fuel set to commence on July 1, 2014, the carbon tax will continue to impact farmer profitability as all inputs come via road transport, fuel is needed for produc-

Tony Abbott

tion, and all harvested commodities leave the farm by road,” says Leach.

“The NFF urges the Senate to pass the repeal legislation before Christmas.”

Australian Prime Minister Tony Abbott says the lower house vote was an important one for Australian families, because the repeal of the tax will create a stronger economy with more jobs and will save families on average $600

Industries Ltd

per year.

“I want the repeal of the carbon tax to be passed by Christmas, and to give Australian families and businesses the help they need,” he says.

However, of the carbon tax in the Senate, where the coalition lacks a majority, local media said Abbott began taking steps to scrap the carbon tax, introducing a repeal bill at the first meeting of the new Parliament earlier in November.

The Coalition government has committed to implement the ‘direct action plan’. In contrast to the previous Labor Government’s carbon price and market-based emissions trading scheme proposal, the plan does not charge industries for pollution. Instead, it would

supports what the coalition has been saying for years.

The committee’s report recommends that the Senate supports repeal of the carbon tax.

“I want the repeal of the carbon tax to be passed by Christmas, and to give Australian families and businesses the help they need.” – Tony Abbott ment Minister Greg Hunt says the senate environment and communications legislation committee’s report into the carbon tax repeal bills

“The senate committee held an inquiry into the carbon tax repeal and is now calling on the Opposition to respect the mandate given to the Gov-

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ernment and not stand in the way of repeal of the carbon tax,” he says.

“The report also heard that the carbon tax could potentially rise to a level up to $A60 by 2020, up from the current price of $A24.15 per tonne.

“The House of Representatives delivered its verdict on the carbon tax.

Now it’s the Senate’s turn to deliver its verdict on the carbon tax. The only thing that stands in the way of repealing the carbon tax is the Labor Party.”

Hunt vows the Coalition won’t stop until the carbon tax bill is repealed.

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DAIRY NEWS DECEMBER 10, 2013

WORLD // 17

Capital change for good in Oz STEVE SPENCER

AUSTRALIAN DAIRY

co-op Murray Goulburn recently announced plans to alter its structure to allow it to source external equity capital. As the MG board and management get on the road to explain their intentions and the new features, it is likely this move will be met with some of the traditional resistance.

Many have called the contest for Warrnambool Cheese & Butter (WCB) a major watershed event for the industry, but I would suggest the operational and capital transformation of MG to be a much bigger deal. Make no mistake, this will affect all dairy farmers.

If MG is to have any chance of achieving the shimmering target of being a much larger, globally relevant business, and realise additional value to the tune of A$1/kgMS from the market, it has to have better access to capital and that includes equity capital.

Australian dairy’s expensive supply chain based on small, aged plants and inefficient haulage weakens the advantages we might enjoy based on mostly cost-competitive dairy farming.

The challenge for MG is to deliver volume and unit-value growth. Sustained improvements in unit prices of dairy products won’t come unless the company is a much bigger and more relevant supplier to export customers. But success won’t come from growth for growth’s sake; MG must move well up the value scale to be a supplier of higher precision ingredients, nutritionals, and high-quality, long shelf-life UHT milks.

It will most likely require MG to also spend more on in-market facilities and relationships to secure that higher unit value.

Current customers need MG to grow with them as they meet the expanding demand for nutritional foods in developing markets in Asia and the Middle East – not remain a company puttering along processing no

more than 1.5bn L of milk into exportable products.

Proposals to introduce an external investment vehicle and a mechanism for shares to be traded amongst MG supplierowners are critical to establishing a permanent and expanding equity capital base beyond farmer owners. This can underpin the funding for current and future investment plans.

In developing and selling the path to such a model, MG will be walking a fine line, as Fonterra has demonstrated by its ground-breaking restructure over the past five years. Only time will tell whether the Fonterra model will work but it has gone well in its early days.

It is a model that provides a long solution to underpin a long-term game plan.

MG will put its model out for discussion in a vastly different setting to Fonterra’s in New Zealand. Given the contest for suppliers, I expect the MG scheme will contain a feature allowing it to welcome all-comers into the supplier-shareholding ranks prior to qualification for the new structure to commence. This could provide an interesting spin following the eventual outcome of the WCB contest – farmer shareholders who sell WCB could take a second bite through MG shareholding.

Hopefully the debate about this important change will focus on the right issues. The core values of the cooperative are what are important to the true believers, and that won’t change: suppliers retaining control of their processing business, keeping skin in the game beyond farmgate, and providing leverage in setting milk value.

Hopefully the smaller peripheral and operational policies and issues won’t distract from this compelling step.

The board and management must continue to make profitable decisions based on business outcomes rather than perceptions of fairness and equity. It must operate – and demonstrate – a governance model with a board that possesses the skills and experience

required to balance the needs of a diverse set of investors.

However, changing capital structure might improve the balance sheets of suppliershareholders by putting a market value on the $A1 MG share, but that alone won’t cure the underlying

malaise in milk supply.

For MG’s long-term plan to succeed, it must bring its current suppliers on a growth journey with it. Milk producers have to be convinced that a bigger industry will be a better place – a better place to build wealth, attract more investment, get better

support from Governments, build more meaningful careers and, as a result, have more rewarding lifestyles, as they have over the Tasman.

• Steve Spencer is a director of Freshagenda, a Melbourne consulting and analysis firm. @dairy_news facebook.com/dairynews

Murray Goulburn is Australia’s largest dairy co-op.

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Rethinking the Everyday

DAIRY NEWS DECEMBER 10, 2013

WORLD // 19

Oz streets ahead on green ice cream AUSTRALIAN DAIRY

farmers have gained a ‘green tick’ from the world’s biggest ice cream maker.

Unilever has credited the Australian dairy industry with meeting its Sustainable Agriculture Code (SAC). So now all Australian-produced milk helps the company meet its ‘sustainable sourcing’ goal.

“Dairy Australia is delighted to be the first dairy industry in the world recognised as meeting Unilever’s sustainability standards,” said Ian Halliday, managing director of Dairy Australia. “All credit to [Unilever] for taking an industry-wide approach.”

Dairy companies Murray Goulburn and

Fonterra were among those that prompted Unilever to work with Dairy Australia to see whether the industry’s production standards met Unilever’s worldwide SAC requirements.

“We took an industrylevel approach to avoid duplicative efforts across dairy companies’ milk suppliers and, once the results were in, to provide broader assurances about all Australian milk production,” says Halliday.

Unilever owns Streets Ice Cream in Australia and New Zealand. Its brands include Magnum, Paddle Pop, Blue Ribbon and Cornetto.

The company has ambitious sustainabil-

ity targets and has set a target of 100% sustainably sourced materials by 2020.

To meet this goal Unilever must accelerate through partnerships, e.g. the work with Dairy Australia.

“We have worked hard with Dairy Australia in the past year to benchmark the Australian dairy industry’s milk production standards against our SAC standards,” says Dirk Jan deWith, Unilever spokesman. The industry was found 100% compliant.

Three specific gaps – in soils, biodiversity and waste – were identified, and to remedy this Dairy Australia, Murray Goulburn, Fonterra and several other dairy companies will work with 100 farms in

Unilever, makers of Streets Ice Cream, has given Australian dairy the ‘green tick’ of approval.

eight dairy regions, “to show continuous improvement in gap areas,” says Halliday.

“[We aim] to ensure Australian dairy’s sustainability standards evolve and improve,” he says.

Aiming high on sustainability THE AUSTRALIAN dairy industry remains on track

to meet its environmental obligations.

Last week the industry released its Sustainability Framework Progress Report 2013, which sets targets and objectives.

Dairy is Australia’s third largest rural industry directly employing 43,000 people.

Australian Dairy Industry Council’s (ADIC) sustainability steering committee chairman Chris Griffin says its products are an essential part of a healthy diet, trusted and consumed by millions of people worldwide.

“As an industry, we have a responsibility to demonstrate our commitment to sustainability at a time when our customers and the wider community increasingly recognise the need for action.

“With the implementation of the framework, the dairy industry as a whole now has set targets and objectives in response to this challenge.

“In 2012 we identified the following sustainability priorities: livelihoods, wellbeing of people and animals, and reducing environmental impact.

“This year farmers and manufacturers have worked with stakeholders, community representatives and technical specialists, in developing a set of 11 performance targets to be achieved by 2020.”

The targets focus on areas such as increasing the competitiveness of the Australian dairy industry, providing best care for our animals, improving nutrient management and reducing greenhouse gas intensity among others.

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DAIRY NEWS DECEMBER 10, 2013

20 // OPINION RUMINATING

EDITORIAL

A warning from Europe

MILKING IT...

Hard hats ready?

GET YOUR hard hats ready. Those keen to denigrate dairy have a new stick to beat it with: a study of tree loss in the Waimakariri District of Canterbury. Research by Lincoln University to be published January 15 in the journal Agriculture, Ecosystems & Environment, “revealed some important differences between farm types and tree cover which provides helpful ecosystem benefits,” reports the Science Media Centre.

“Researchers found that compared to beef, sheep and lifestyle farmers, dairy farmers have fewer trees on their land and, importantly, are less inclined to plant trees.” What’s the betting Forest & Bird throws the first punch?

Police called out to meet, dine USUALLY ONE would expect fireworks at a farmer co-op annual meeting. But with the forecast payout at an all-time high and the company doing well, Fonterra’s annual meeting in Invercargill last month was a mere formality.

So the presence of several police cars and police officers raised a few eyebrows. Fonterra soon assured journalists the cops were invited, with other community workers, to attend the event, meet local farmers and Fonterra bosses and enjoy a meal courtesy of the world’s largest dairy exporter.

From another planet

By George!

WHEN WILL they learn?

The website www.onegreenplanet.org is again trying to discredit dairy, in particular cow’s milk.

It ridicules ‘five ridiculous myths’ about milk: it is not the best source of calcium, doesn’t give us strong bones, cows are snatched from their mothers, cows don’t need to be milked and cow milk is not good for humans.

With such ridiculous claims, can we suggest the website changes its name to www.onanotherplanet. org?

HERE’S SOMETHING for Prince George to milk for a long time when he grows up: the tot has been given a herd of cows as a gift.

While most babies get cute clothes and cuddly toys, a tribe in Kenya has decided to hand the little royal four heifers, a bull and a goat.

The present is symbolic of a blessing from the Samburu community and the gesture is considered a great honour.

George’s animals will be kept in Lewa, northern Kenya. The place has a special place in his parents’ hearts – it is where William popped the question to Kate in 2010.

AGRIBUSINESS EXPERT Ian Proudfoot, KPMG, is sounding a warning about the direction the European countries, especially the Irish, are heading with their dairy industries.

Restrictions come off European milk production in 16 months and the Irish are chomping at the bit to sieze the opportunity to “unleash their dairy industry on the world,” says Proudfoot.

Irish dairy co-op Dairygold is investing $260 million in Irish processing facilities to massively increase operations when EU restrictions on milk production end in April 2015. A new factory in Cork will have two dryers, and a new dryer will be commissioned in an existing Cork factory. They may be small by our standards, but to dismiss them out of hand would be dangerous and unfortunate.

The EU milk market is regulated by a quota system. Every member state has a national production quota which it distributes to farmers. Whenever a member state exceeds its quota, it has to pay a penalty (called ‘super levy’) to the EU. This national penalty is in turn financed by penalties imposed on farmers who have exceeded their individual limits.

The EU decided in the 2009 ‘Health Check’ reform that national quotas will be increased 1% every year, so that their value is slowly eroded, preparing for a soft landing in 2015.

New Zealand has had captive markets in world dairy trade for many years and there are signs it has taken these for granted. The botulism scare, problems with dairy factories and the general failure of Fonterra to force its farmer shareholders quickly up to speed on sustainability are examples of complacency. Fonterra seems unwilling to take a hard line by kicking out of the dairy industry those farmers who ignore the rules on sustainability. More action and less talk might do the trick.

The Irish have ‘Origin Green’ and will use this to great effect when they start marketing in Asia. European farmers have played hardball with New Zealand in the past and there is no reason to doubt they won’t do it again.

New Zealand’s reputation has been sullied by the false botulism scare and other transgressions and this is opening the door for others, like the Irish, to snatch market share from us. Some of the independent dairy companies here, such as Westland and Miraka, have shown they can make a dent in Fonterra’s position.

It is critical that, as suggested by chief executive Theo Speirings, Fonterra lifts its game considerably. Kicking a few feral dairy farmers off their books could be a starting point.

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DAIRY NEWS DECEMBER 10, 2013

OPINION // 21

Time to review the year MIKE WEISE

SEASON’S GREETINGS and a spe-

cial greeting to those who have to milk over Christmas. I’ve milked only five times over Christmas in my 30-year dairy career and though the Christmas morning milking was ok, milking on Christmas afternoon was a killer and boxing day morning was even worse.

How do families deal with excited kids who have had to wait for you to get in after milking to open their presents? Several families have to answer the question “Did you see Santa?” I’ve asked friends how they answer that question. They answer “No, he must have come before I went out to milk because the gifts were round the tree when I left.” Or, “I heard some bells and the cows seemed spooked; it might have been Santa.” Or, “I think I heard the neigh of Rudolph as I was milking the second row.”

The end of the year is a time for review and while the financial year end is six months away, somehow January 1 – the turning of the year – is a great time to reflect on how well the decisions you

took during the year have gone and to plan next year.

Some businesses have professional monitoring and benchmarking systems that measure their business performance against annual plans, but others use a less formal review to improve performance each year.

A general review question is, “How could I improve?” but that is not specific enough to extract smaller business improvements – the one-percenters we need to make this year more efficient than last.

Within the broad question above are three smaller ones: a) what did I do that I shouldn’t have done?; b) what didn’t I do that I should have done?; c) what did I do that I could have done slightly better – often in this group are those small one-percenters? This review process is easier if you know what you were aiming for out of 2013 this time last year, i.e. at the end of 2012. Did you make a plan? Did you write it down? If you did it will be easier to review how you’ve travelled these last 12 months.

Another friend, a Kiwi, says to me that at one level ‘dairy’ is very simple: keep the milk producing units (the

Some businesses have professional monitoring and benchmarking systems that measure their business performance against annual plans, but others use a less formal review to improve performance each year.

cows) fit, healthy and breeding annually, put food in at one end, get staff to remove milk from the other and make sure the cost of the inputs is less than the income from the outputs.

That may appear to outsiders to be the main game but those ‘Legendairy’ posters paid for by our levy describe the hundreds of skills of an average dairy farmer. For my Kiwi mate though, he broadly reviews his business against cows, feed, staff and money.

Mike Weise

You might want to review whether you produced and fed the optimal amount of feed off your land. Did you add to that a profitable amount of bought-in feed: supplements, fodder and agistment? Did you keep the shed in tip-top nick so your milk stayed in the top band all year? The questions go on and on.

All this work you do, and the review,

are ultimately meant to achieve your family goals at the core of your business: a healthy satisfying life, well-rounded happy kids who can make their way in the world, and enough to live on and save to build wealth.

A farming family I know who came into dairy nine years ago – with management skills from another industry and farming skills from a beef and sheep property – started out with $250,000 for their new dairy farming venture. They are now worth $A2.5m.

They are hungry for new skills and knowledge and their annual new year resolution is “every night try to go to bed less stupid than when we woke up.”

What will be your new year resolution for 2014?

• Mike Weise is a dairy extension and business development consultant in Victoria.

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DAIRY NEWS DECEMBER 10, 2013

22 // AGRIBUSINESS

DWN has finger on the pulse Sabin will draw five lessons on dealHOW TO reach a level of performance that matches medal winning athletics ing with the challenges life inevitably and world champion sports teams will puts in our path.

Also speaking will be ASB chief execbe discussed at the Dairy Women’s Network annual conference in March utive Barbara Chapman and Maury Leyland, the Fonterra group director of 2014.

The two-day conference at Claude- strategy in the office of the chief execlands Event Centre, Hamilton, on utive.

March 19 and 20, is themed ‘Keeping your finger on the pulse’.

Keynote speakers include Hamilton sports psychologist David Galbraith who has worked with the Chiefs rugby team and Magic netball team, and Olympic silver medal winner Sarah Walker.

Keynote closing speaker Darryl Sabin will tell his story ‘Get busy living’, recounting his recovery from a serious brain injury suffered during a rugby match. His recovery saw him overcome challenges medical experts thought were Sports psychologist David impossible. His dream had Galbraith. been to become an All Black.

“Maury has had a diverse and interesting career journey,” says Dairy Women’s Network executive chair Michelle Wilson.

“She was a member of the design team for Team New Zealand during the successful 1995 America’s Cup campaign. She is incredibly accomplished

Darryl Sabin will speak on his recovery from a brain injury suffered while playing rugby.

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and will share her inspiring story.”

The conference is chiefly intended to give dairy farming women the latest information on farming business, animals and people, from prioritising wellbeing to developing a leadership style, Wilson says.

“Increasingly farmers must be

involved in more areas of our businesses and ensure we are… exceeding expectations, from managing stock to best practice in environmental compliance.

“This year’s conference will hear from inspirational people… and from some who have hit rock bottom and worked their way back up.”

Eight workshops will include HR practices, business strategy, animal health and making sure stock are the ideal weight, and personal wellbeing – how to look after yourself and your mates.

The third Dairy Woman of the Year award winner will be announced at the conference gala dinner. The winner will take part in the ‘Women in Leadership’ 12-month programme run by Global Women, a prize valued at $25,000. The award is sponsored by Fonterra Milk Supply.

Fonterra’s group director of strategy Maury Leyland.

Tel. 0800 396 748 www.dwn.co.nz

DAIRY NEWS DECEMBER 10, 2013

AGRIBUSINESS // 23

Strong vote of confidence in fert co-op base is not only a huge vote of confidence for Ballance, but it also underlines the strength of the agriculture sector in New Zealand and the benefits of belonging to a co-operative.

“We’re here for shareholders, aiming to ensure they have a secure supply of high quality product at the most competitive prices. The bonus is the rebates paid on fertiliser purchases.”

Ballance chief executive Larry Bilodeau says the company’s strong balance sheet and performance this year reflect a disciplined approach to costs during a year in which prices were held steady.

“We were able to lead market

prices whilst achieving reasonable margins by maintaining stability in raw material pricing last year.

“We also kept overall costs under tight control, supported by operating efficiencies.”

To become a shareholder a farmer must buy a minimum of 30 shares and buy extra shares according to the tonnes of fertiliser they expect to buy in a year.

Shareholders typically receive a rebate on all purchases during each financial year, calculated on the volume of fertiliser bought and the value of that product.

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and “have a very ambitious free trade agenda”.

“Asia is where a lot of growth in international dairy trade will come from so it is logical for Europeans to look at that region. But… New Zealand has longstanding trade relations with many of these countries. The relationship between the New Zealand dairy industry and Taiwanese customers spans more than three decades.”

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Emett, soon to appear in a fifth season of Masterchef New Zealand, will be the celebrity chef in Fieldays’ Kiwi’s Best Kitchen.

The Kiwi’s Best Kitchen is said to be one of the busiest marquees at Fieldays where visitors get to taste New Zealand’s favourite and food and beverages.

Emett, a Michelin star chef, grew up on a farm outside Hamilton. He remembers visiting Fieldays as a boy and now looks forward to returning next year as the 2014 Kiwi’s Best Kitchen Celebrity Chef.

“It’s an easy and comfortable place for me,” said Emett who will also be exhibiting Chef Series, his own range of restaurant quality, slow cooked meats, and his new cookbook ‘Cut’.

“I’m excited to be bringing my book to sell at Fieldays. People can come and talk about the recipes, what they can do and… broaden what they do in the kitchen. It’s not always easy; you want good simple recipes but also to branch out and do a few different things.” www.fieldays.co.nz

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Nathan Guy is hailing the new trade deal with Taiwan as massive boost to New Zealand exporters – especially dairy exporters.

No tariffs now apply to dairy products (liquid milk excepted), saving $40 million annually, Guy says.

“Tariffs on beef will be eliminated in two years, and tariffs on kiwifruit in three. In four years, sheep, honey and most

Zealand’s dairy products and in 2012 that was valued at $242 million.

Taiwan has imposed a tariff on dairy products of 5-50% so this agreement [gives] full tariff elimination.”

Crewther says all dairy companies benefit from the agreement which will improve the liquidity and demand for New Zealand dairy products globally. She also notes that European dairy farmers are eying up Asia

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fish product tariffs will be eliminated and 99% of New Zealand trade to Chinese Taipei will be tariff-free. In total, tariffs will be eliminated on 100% of New Zealand’s current exports in a staged programme over 12 years.”

The agreement is “high quality”, says Dairy Companies Association of New Zealand (DCANZ) executive director Kimberley Crewther.

“Taiwan is the 15th largest market for New

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Agri-Nutrients is reporting a notable rise in shareholder applications compared with the same time last year.

New chairman David Peacocke says the co-op is in strong shape. It paid a record rebate and dividend of $65/t to shareholders.

“Ideal pasture growth conditions this season and good cashflow in the various farming sectors has [raised] an appetite for fertiliser and feed to further boost productivity,” says Peacocke.

“For Ballance shareholders, a great spring has been capped off with an extra cash injection from a healthy rebate…. Our growing shareholder

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DAIRY NEWS DECEMBER 10, 2013

24 // MANAGEMENT

OAD a great way to enjoy Once-a-day milking offers many options to dairy farmers. Peter Burke met one such farmer last week at an OAD field day organised in Wanganui by DairyNZ. THE MINUTE you walk

onto Stu Hopkins dairy farm at Maxwell, north of Wanganui, you can tell he’s got goals.

In the middle of the tanker turning ring by the dairy shed is a large, beautifully mown area of grass with rugby goalposts where he and his son Cameron spend a lot of the free time he has as a once-aday (OAD) dairy farmer.

For Stu, OAD means more time to spend with his family.

He loves dairy farming and enjoys milking cows, and he expects to be able to do this longer than twice-a-day (TAD) farmers, who tend to quit in their fifties. Longevity as a working dairy farmer is Hopkins’ key goal.

He has been a dairy farmer most of his life and did a diploma of agriculture at Massey University which he says taught him to “think”. He runs his farm according to what he sees and feels, but who also advocates DairyNZ’s DairyBase scheme. He ‘sees’ on the land what many conventional farmers might measure with technical equipment.

The farm is not far from the coast and on a good day you can see the South Island and Kapiti Island.

He runs 280 Jersey cows in two herds – one third mainly young cows or needing special attention, two thirds the older animals – on a 71ha (eff) milking platform and a

32ha support block. This season he is targeting 90,000kgMS, up from the 85,300kgMS he did last year in the drought. Farm working expenses this year will be about $2.70/ kgMS. He and wife Tania, helped by the three children, run the farm themselves so labour costs are low.

“We’ve been here 12 seasons: six were TAD then we moved to OAD. We were at a crossroads: either we poured some concrete and fed the maize on there, or gave OAD a crack. With OAD we didn’t have any infrastructure expenses – that was the key. Our shed is 25-a-side so we could double our cow numbers and not have to make the

Stu Hopkins is happy with “fantastic low-cost dairying.”

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DAIRY NEWS DECEMBER 10, 2013

MANAGEMENT // 25

the land shed any bigger. So we now have fantastic lowcost dairying.”

Hopkins says he and his wife and kids are “cranking out reasonable numbers”. Eeryone’s got a wage book including kids and they all enjoy the farm and get stuck, then have time for recreation.

“I’m one of the only dads who can do that because these others guys are always working. In the middle of spring I was Cameron’s coach. He and I were on the rugby field by 8.30am, then straight back here calving. I was a bit buggered by then but had my daily 11 o’clock nap then I back into it and we never lost any cows.”

Hopkins has halved his empty rate from eight to four and has now bred a good OAD cow. He likes Jerseys for OAD, finding them more adaptable than Friesians. The big gain for

him has been breeding good cows and so having to rear fewer replacements: there is a big gain in having to rear only 15% rather than 20% replacements.

Staff, fertiliser and grazing are big ticket items on the farm.

The pastures on Hopkins farm impressed the farmers attending the field day. Most said they couldn’t believe how good they were.

Hopkins pays close attention to re-grassing, but not in the conventional way. He just broadcasts the seed – a mixture of chicory, plantain, clovers and fescue, and some ryegrass – by towing a small harrows behind a spreader on his quad.

Occasionally he’ll spread the seed with a hand spreader. It might seem unconventional but for him it works and it saves

money on not spraying out pasture. He also applies fertiliser strategically.

The quality pasture provides excellent hay which Hopkins likes. He uses supplements, but does not like palm kernel.

He’s fenced waterways and native vegetation on a lake in the middle of the farm and has seen regeneration as a result.

Solar heating of water in the dairy shed has made a huge dent in power bills.

His move to OAD has given Hopkins ‘two lives’: farming and family.

He see OAD as a means of attracting younger people into dairy farming, knowing that the long hours are not attractive to young people.

“Imagine working for me. You might start early but I could send you home before three o’clock. You can pick your kids up from school,” he says.

A GREAT ADVOCATE OF DAIRYBASE WHILE STU Hopkins might make a lot of his farming decisions on gut feel, he’s a great advocate of DairyBase and his is a benchmark farm. He says it’s such a valuable tool that it should be promoted more by DairyNZ. “We are so lucky to have this because you can compare your business against a neighbouring business.

“There are few businesses… able to measure [themselves] against peers and get real figures.

In some ways you are getting second opinion from the accountant.”

Hopkins says he once thought his accountant’s bill was a bit high, but when he looked on DairyBase

he found others were paying a similar amount. And it helps him in the event of buying another property.

“A lot of guys who have done conversions [by buying] the neighbour’s place discover it hasn’t bought them the happiness and wealth they thought it would.

I have seen in Taranaki people buying the neighbour’s place and paying far too much for overpriced land, building a new cow shed and spending a whole lot of money on capital infrastructure.”

Hopkins says only about 2000 farmers are on DairyBase and he’d like to see that number at least doubled.

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DAIRY NEWS DECEMBER 10, 2013

MANAGEMENT // 27

Stay safe on your quad, tractor DAIRY WOMEN’S Network (DWN) and AGrowQuip are preparing to educate more dairy farming women about farm vehicle safety.

They ran three pilot workshops in Waikato in October, just before a coroner released recommendations after looking into the deaths of five farmers in quad crashes. About 50 people attended the free events.

Tokoroa dairy farmer Sarah Manders, who owns and operates two dairy farms on 175ha, milking 400 cows, attended the Putaruru workshop.

Manders sometimes rides a motorbike but mostly a John Deere Gator

‘side-by-side’. Her husband taught her to drive the farm’s tractor.

“The farm vehicle safety workshop made me stop and think, and look more closely at little things I do every day that have become common practice.

There were a few ‘aha’ moments when I realised I could improve my safety,” says Manders.

“This workshop would help farm workers, because hearing from experts about how serious it can be when things goes wrong, rather than the boss harping on, is also more effective. They’ll also participate in group discussion, valuable for sharing practical ideas and

Dairying women learned how to operate different farm vehicles safely at the Waikato workshops.

learning from other people.”

Putaruru farmer Lynley Mathis, who owns and operates a 180ha farm milking about 400 cows, also attended the workshop.

Being sole operators and with no staff to rely on, Mathis says she and her husband are acutely aware of the need to keep safe. Getting injured is out of the question.

She has a lot of experience of operating farm vehicles. “You get a bit blasé… so a reminder about the best and safest way to operate and handle your vehicles is always a good idea.”

“The videos John Deere’s product specialist showed us gave realistic examples of what can happen when your attention is distracted or you’ve entered ‘automatic mode’ because you do something so often; it doesn’t mean the dangers aren’t there.”

AGrowQuip chief operating officer Alan Cottington agrees with all the coroner about quads, particularly making training more accessible and adding more protection.

“Having a safe vehicle is only one part of the equation; knowing how to operate it properly is just as important but an instruction manual doesn’t build

Landcorp manager shows potential LANDCORP’S

SENIOR business manager dairy, Mark Julian, has received the NZIM-Eagle Technology Young Executive of the Year Award at a national awards event in Auckland.

Judges described Julian as “a farsighted young leader with the potential to make a difference. He is wise beyond his years, and combines personal humility and compelling resolve”.

Julian had earlier won Young Executive of the Year in the New Zealand Institute of Management’s central region.

Mark Julian Landcorp chief executive Steven Carden says Julian is being recognised for his dedication to excellence in dairying management and for his outstanding leadership qualities.

“He is exactly the type of young leader New Zealand needs in agriculture, and a fine example of the people Landcorp is striving to develop and grow for the sector.”

The judges said Julian recognises the rich potential of diversity and community. “He has an inherent and deep understanding of leadership that will take him into significant national leadership roles.”

He joined Landcorp in 2008. After a stint as a Westport farm business manager for some of Landcorp’s West Coast dairy units he was appointed senior business manager dairy in September 2011.

Julian says the company has enabled him to rapidly grow his skills and knowledge in a supportive environment.

“Landcorp has given me outstanding opportunities at an early stage of my career. I thank senior managers for backing me with delegations of responsibility, and with guidance and encouragement along the way.”

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Australian expert Sarah Ross advised Waikato dairying women on farm vehicle safety, including what can happen when things go wrong.

a practical skill set.

“When we were considering how we could contribute to improving the industry’s skill level in vehicle safety we approached the Dairy Women’s Network because they have a significant membership base and reputation.

Things then progressed quickly to the pilot workshops.”

DWN executive chair Michelle Wilson says the network would like to see workshops annually nationwide.

“Our members share what they learn with their families, onfarm teams and other rural people, so we have the ability to [help] thousands of people.

More workshops are planned for 2014. The training will include safety features of modern machinery such as transmission braking and anti-stall devices, driving in undulating and hilly terrain, safety shields and seat belts, basic maintenance, and rules for driving on roads.

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DAIRY NEWS DECEMBER 10, 2013

28 // MANAGEMENT

Waikato farmer’s legacy helps tertiary students A PIONEERING Waikato farm-

er’s legacy has eased the financial burden of 400 students entering their first year of tertiary study in Waikato.

Since 1997, the students have received a share of nearly $2 million from the David Johnstone Charitable Trust Science and Education Scholarships.

This year marks the 18th anniversary of Johnstone’s scholarship for students, set up in 1996 to fulfil his desire to help young people succeed. Guardian Trust is a trustee.

General manager personal client services Philip Morgan Rees says it is an honour to help realise Johnstone’s legacy which has helped many young Waikato students.

“David’s genuine desire to see young people succeed and the large contribution he left are testament to his good will and character. His vision was to see his trust provide

financial assistance to deserving youth who display academic achievement to help them expand their knowledge,” says Rees.

Born in 1909, Johnstone was one of eight children. He left secondary school early to help his mother and brother on the family’s Waikato farm after his father died.

He continued to farm with his brother until the farm was split into separate blocks.

In 1940 Johnstone was ‘manpowered’ out of the army, one of many men considered essential to the national effort, and so not required for war service. In 1970 at age 62 he sold his Whatawhata farm to his nephews and bought the 1000ha Orini Downs Station in north Waikato.

Johnstone was particularly fond of native bush, and when he sold Orini Downs he retained 40ha which today has reserve status and is held and administered by the trustees of the David John-

stone Pukemokemoke Bush Trust, with Guardian Trust as custodian trustee.

At the end of his life in 1990 he was well known for his stockmanship, services to industry and for having helped found the National Fieldays, working with a small group to get the event under way.

Matamata student Tayla Carson, one of David John- Tayla Carson stone’s scholarship recipients, will begin studies towards an undergraduate degree in science and technology at the University of Waikato in 2014.

An enthusiastic secondary school biology teacher inspired Carson to study science. During her school years she worked part-time in the call centre of a local business

serving farming. While she doesn’t have a rural background, Carson says farming will benefit from her degree.

“I’m interested in agricultural genetics, particularly trans-genetic cattle. There is a high demand for people with skills in this area and I want to use my degree to help our farmers produce the best cattle in the world,” she said.

Rees added that Johnstone had set up his charitable trust while he was alive.

In its inaugural year, 20 students each received a $4000 scholarship for their first year of study at the University of Waikato or Wintec. In later years more students received scholarships and the amount increased to $5000.

Dairy Awards benefits still flowing in THE BENEFITS keep coming for the Taranaki couple who in 1990 won the first Sharemilker of the Year contest in the New Zealand Dairy Industry Awards.

Kevin and Diane Goble’s win boosted their standing among peers and the farming community.

At a recent event to mark the competition’s 25th anniversary, the Gobles said the trip down memory lane had shown them the honour in winning the contest. “It gave us confidence in our farming ability and decision-making, which helped when moving up to farm ownership.”

Entries in the 2014 awards, including the Sharemilker/Equity Farmer of the Year, Farm Manager of the Year and Dairy Trainee of the Year contests, are being accepted at www.dairyindustryawards.co.nz until December 20.

The Gobles now own farms milking 620 cows at Okato and a farm at Waverley milking 400 cows.

Kevin Goble says he was involved with the local organising committee for a few years following the couple’s win.

“We made a lot of friends and acquaintances from this competition and over the years we have all moved through the sharemilking/farm purchase cycle, and have been able to share ideas along the way,” the Gobles say.

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DAIRY NEWS DECEMBER 10, 2013

MANAGEMENT // 29

App puts herd data in farmer’s pocket FARMERS TICKING

a survey box marked ‘animal details’ guided LIC in its latest choice of smartphone app, said the company as it launched its Minda Lookup recently.

Access to herd records from a mobile topped a survey LIC ran at National Fieldays in June.

Minda Lookup is LIC’s second mobile app this year, following Minda Calving launched in June.

LIC’s general manager of farm systems, Rob Ford, says farmers at Fieldays were asked to rate pasture covers, body condition score, movements, health treatments, mating and tag information. An app for animal details was the

clear favourite.

“With Minda Lookup they’ll be able to look up and review [data on] cow information and history, such as production, mating, health, BW and PW.” The app offers four areas of information: essentials, production, peproduction and health.

Essentials includes cow BW, PW, expected calving details, recent herd test information and mating and health events. The other three tabs – production, reproduction and health – give more detail on these subjects for each animal.

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LIC says it will develop the apps voted for by farmers at National Fieldays. Ford says the co-op plans to develop the parts from Minda Pro and

Minda Mobile most relevant to onfarm use. Apps are the most requested item from farmers getting in touch with the co-op, Ford says.

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Women leaders graduate FOURTEEN WOMEN newly graduated from a 10-month Escalator farm-management course offer much to agriculture, says the organiser, the Agri-Women’s Development Trust (AWDT).

Since the course’s first year, 2010, 39 women have graduated. This year eight of the women were from dairy farms. They gained leadership, governance and business skills.

The course is supported by ANZ, Beef + Lamb NZ, Dairy NZ and Agmardt. It was started because women in farming have low participation in leadership and governance.

The course includes five learning modules attended in Wellington, individualised distance learning, coaching and professional development, supported by the trust and industry organisations and mentors.

This year’s graduates from Northland to Canterbury got support from 17 Escalator alumni.

“Alumni members are now sharing their knowledge, resources and networks with participants in Escalator and other trust programmes which includes delivering training, mentoring and on-going support,” AWDT executive director Lindy Nelson told alumni, trust supporters and industry leaders at the graduation ceremony in Wellington.

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DAIRY NEWS DECEMBER 10, 2013

30 // ANIMAL HEALTH

Mastitis a major health issue onfarm MASTITIS CAUSES

significant cow losses on every farm, costing the New Zealand industry about $280 million annually, says DairyNZ. Mastitis due to Streptococcus uberis is the most significant cow health problem for dairy farmers here, and affecting pasturebased dairying worldwide.

In New Zealand, about 10% of cows suffer clinical mastitis at calving, and about 75% of these cases are due to Str. uberis.

DairyNZ scientists with researchers from AgResearch (Hopkirk Institute), ViaLactia (a Fonterra subsidiary) and LIC took part in a project

Mastitis costs the industry about $280 million annually.

According to the project results, discussed in the December issue of DairyNZ publication ‘Technical Series’, some cows appear more able to resist

titled ‘Novel tools to prevent Streptococcus uberis mastitis in dairy cows’ – more commonly referred to as the ‘Mastitis Tools’ project.

Mastitis caused by Str. uberis, an environmental pathogen, affects all herds but noticeably those that have good controls in place for preventing contagious mastitis. becoming infected. In most herds, farmers recognise cows that remain free of mastitis throughout their lifetime. Closer inspection of such cows within research herds has highlighted some important indicators of apparent

The project has aimed to develop effective ‘tools’ (genetic markers and/or a vaccine) that could help New Zealand dairy farmers reduce the incidence of clinical mastitis by 50%, increase herd productivity and improve milk quality.

resistance.

So why should farmers worry about Str. uberis mastitis?

According to DairyNZ, mastitis caused by Str. uberis, an environmental pathogen, affects all herds but noticeably those that have good controls in place for preventing contagious mastitis.

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the DairyNZ mastitis database reveal that about 14% of the herd (26% of heifers and 11% of cows) had an intramammary infection due to Str. uberis after calving. Of these infections, 54% went on to become clinical within the same lactation, often within the first week after calving.

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results. Between 10-30% of intramammary infections at calving in heifers were found to be due to Str. uberis5 and 40- 50% of intramammary infections due to streptococci progressed to clinical mastitis.

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DAIRY NEWS DECEMBER 10, 2013

ANIMAL HEALTH // 31

Genetic influence on mastitis resistance found THE ‘MASTITIS Tools’

project also looked at the role of genetics.

Examining the DairyNZ identical twin herd records has also revealed that a twin member is twice as likely to develop a Str. uberis IMI if her twin mate has been infected.

The difference in prevalence of infection is statistically highly significant and confirms the possibility of a genetic basis to resistance to Str. uberis mastitis.

Using information from a genetic study, a genetic influence on mastitis resistance was also found. The number of infections was different between the daughters of the six sires. Daughters of sire B had 25% of quarters infected with Str. uberis at calving, whereas only 8% of quarters of daughters of sire C were infected.

Sire also affected the likelihood of clinical mastitis, with infection case rates ranging from 4% to 16% between the different groups.

Do cows really differ in resistance to mastitis?

To characterise cows that get less mastitis, the DairyNZ mastitis data-

base was examined to find cows with either a history of mastitis or no recorded mastitis. ‘Resistant’ cows were those that had no recorded isolation of a major mastitis pathogen (Str. uberis, Staphylococcus aureus, Streptococcus dysgalactiae) during a minimum of one and a half lactations and including two calving periods.

‘Susceptible’ cows had one or more recorded cases of clinical mastitis due to Str. uberis, or two or more samples from which Str. uberis was isolated. While 9% of all cows in the database were positive for a major pathogen at some point during their infection histories, 12% of cows had no recorded infection. Twenty-six ‘resistant’ and 27 ‘susceptible’ cows were selected for further examination of phenotypic characteristics.

Measurements included phenotypes of possible significance published elsewhere: teat length, height of the teat tip from the ground, teat skin pigmentation, teat canal length, the amount of keratin that could be removed from each teat

canal, milk yield and composition including somatic cell count, peak and average milk flow rate and the afternoon milking duration.

Cows with a history of intramammary infections (‘susceptible’) produced more milk fat (1.22 vs.

1.07 kg/d; P<0.01) and had slightly shorter teat canals (9.9 vs. 10.8 mm; P=0.07) than ‘resistant’ cows. No other differences were found.

The next question: is a resistant cow always resistant?

These cows were then subjected to an infection challenge to examine the connection between a cow’s history of infection and her ability to resist an infection in the future.

Three challenge methods were used sequentially: dipping the teats in bacteria (DIP), inoculating bacteria into the teat canal (TC) and inoculating bacteria inside the udder (intramammary; IM), to examine whether the protective characteristics were operating at the teat orifice, teat canal or immunological level (influenced by the immune system).

Challenge one (DIP) involved dipping all four teat ends of the cows in skim milk containing Str. uberis after milking, for a six week period. For challenge two (TC), which occurred 16 weeks after challenge one, those cows unaffected following the DIP challenge and remaining uninfected at the beginning of the TC challenge had Str. uberis inoculated about 3mm into the teat canal. Challenge three (IM) involved inoculating Str. Uberis into the mammary gland, via the teat canal.

Initially, ‘resistant’ cows tended to ‘resist’ infection during the DIP challenge. But later, once the teat canal was breached in challenges two and three, ‘all bets were off’ and their earlier histories did not predict the outcome. So, while genetics are likely to play a role, managing the condition of the teats is very important. Additionally, the results indicate that there is a minority of animals which have highly resistant phenotypes.

These cows are of interest for genetic studies of Str. Uberis mastitis.

A study, led by DairyNZ scientists, looked at the role of genetics in mastitis resistance.

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DAIRY NEWS DECEMBER 10, 2013

32 // ANIMAL HEALTH

British, Indian quest to beat bovine TB THE UNIVERSITY of

Bovine TB costs British taxpayers about $20m a year.

Surrey in UK has secured a large research grant for pioneering research into bovine tuberculosis (TB).

Academics in the UK and India aim to develop jointly a control strategy for TB, with benefits for

human and animal health.

Bovine TB costs British taxpayers about £100m (NZ$200m) a year.

Britain has compulsory bovine TB screening and slaughter, but despite proof that the BCG vaccination protects cattle

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against the disease, it is unlawful to vaccinate because the BCG interferes with the skin test currently used to detect the infection (giving a positive result whether an animal has been vaccinated against, or is infected with, TB).

In India, the problem of zoonotic human TB is compounded by 70% of milk sold being processed by the ‘unorganised’ sector where hygienic practices are not guaranteed. Bovine TB screening and control is also ineffective due to unrestricted animal movements and for socioeconomic and cultural reasons.

Johnjoe McFadden, professor of molecular genetics at the University of Surrey, is leading this three-year project to develop a cheaper diagnostic test for bovine TB and a vaccine that could be used alongside it. Success would revolutionise control of bovine TB, benefitting the economy, and animal and human health, particularly in India.

The scientists are seeking to delete some of the antigens in the BCG to develop a minus strain and replace the existing skin test (which detects all of the antigens TB produces) with one that detects only

a limited number of antigens – those eliminated from the minus strain BCG. This means the test would show a positive result only if infection with the TB bacillus was detected.

The research will focus on identifying which genes to knock out from the BCG – to ensure any knock-out genes do not impact the effectiveness of the BCG – and designing the diagnostic.

McFadden says while other labs are looking for BCG plus strains, “we are doing the opposite and looking at minus strains to make the vaccine more compatible with affordable diagnostics”.

“If a suitable new vaccine and diagnostic test can be developed for use in India, it could be transferred to the UK (subject to relevant legislation changes) or even translated for use in humans, avoiding the need for an X-ray to confirm diagnosis following a positive test for TB.” The research will benefit from the recent establishment of the University of Surrey School of Veterinary Medicine, which has a strong focus on developing new control strategies for animal disease.

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NO SIGN has appeared of black-grass in mid Canterbury following three rounds of surveillance, says MPI. MPI contractors are surveying between Methven and Ashburton in response to the spillage along the route of red fescue seed believed to be contaminated with black-grass.

They have completed three rounds of surveillance. Six more rounds are scheduled in the next five months.

Contractors have sprayed selective herbicide on areas thought to be high-risk for black-grass establishment, says David Yard, MPI response manager. A second spraying will be done in March.

“It’s all going well, but we’re not out of the woods yet. We’ve got another two and a half years of surveillance and treatment before we can start calling the response a success or not.”

Black-grass is a serious invasive weed of winter crops in the UK and Europe where it has developed resistance to many herbicides. The Government and industry are working to ensure it does not establish in New Zealand.

Check out the latest news and information at www.dairynews.co.nz

DAIRY NEWS DECEMBER 10, 2013

ANIMAL HEALTH // 33 Balanced trace element formulation

Seaweed concentrate enriched

Test early for pregnancies later in pregnancy. So they will have to dry year fared better than last: world demand a pregnant cow off to her earliest possible for our product is strong, the dollar is a calving date to ensure she gets a 42-60 day little lower and we look forward to an even dry period, which is about ideal.

But if she is 6 weeks less pregnant than better 2014.

The summer season is a time of long you thought, you have wasted up to 42 days days, hot nights and hopefully a busy party of milk – as much as 700-800 L, possibly several hundred dollars for scene. But life also goes on each cow in this category. around the dairy farm. The Most herds I pregnancy girls have to be milked, irritest have at least 10-15% of gation attended to, summer their cows with a single AI pastures topped, bulls run date and no other recorded out with the herd and autumn mating that are pregnant cows pregnency tested and to the bull, so you could be dried off. losing many thousands of With such a positive milk ANIMAL HEALTH price this season for most ROB BONANNO dollars in lost milk across the herd if you do not deterfarmers, you should consider mine when a cow is likely to an early round of pregnancy testing this January for spring calved calve and dry her off at the optimal time.

Also, cows with dry periods exceeding cows. Testing the cows five-six weeks after the bulls were put in will allow you 90 days have much poorer transition outto determine which cows are pregnant to comes than those going through the ideal AI because the cows pregnant to the bulls dry period.

Not knowing for sure can also mean will be not detectably pregnant yet, or are easily distinguished as five-six week old that cows spend far longer than ideal times pregnancies, not to be confused with the on the lead feed diet, with serious metabolic consequences possible. older pregnancies conceived by AI. Remember that school holidays are a In times of strong milk prices this is about the best value for money on your high-risk time for farm injuries and fatalfarm. For example, a farmer who does not ities. Keep a close eye on the kids if they pregnancy test early cannot distinguish are ‘helping’ onfarm; ensure they are either between a calf conceived by AI and one fully instructed or adequately supervised. conceived weeks later to the bull, as shown • Rob Bonanno is a past-president of Austraduring pregnancy testing later in the year lian Cattle Veterinarians Association and a (April-May) or using a milk or blood test director of the Shepparton Veterinary Clinic.

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FARMERS AND lifestylers are being encouraged to get their cattle and deer tested for bovine tuberculosis (TB) as soon as they have been registered with the TBfree New Zealand programme.

To ensure the programme’s testing requirements are as accurate as possible for all animals, some changes have been made to the TB status of herds, says TBfree NZ The changes directly affect newlyregistered breeding herds and nonbreeding (dry stock) herds. All new herds now start off on a Suspended (S) herd TB

status until they have passed their first whole herd test.

The changes took effect from Monday 25 November. Newly-formed breeding herds are a potential TB risk so should have a whole herd test within at least 12 months of registering with TBfree NZ. All herds – and in the case of lifestyle properties even one animal makes a herd – must be registered with TBfree New Zealand when formed. Once newlyregistered breeding herds have passed a whole herd test, they will receive a Clear 2 (C2) status.

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DAIRY NEWS DECEMBER 10, 2013

34 // MACHINERY & PRODUCTS

Loader wagons chop, handle crop with greater ease LELY HAS further extended its loader

wagon range with new Tigo PR loader and silage wagons, replacing the Tigo R Profi model.

There are three models in the in the Tigo PR range with capacities 31m3 to 41m3.

Lely Tigo PR wagons combine new features of the Tigo XR such as movable bulkhead with the capacity of the Tigo R Profi. With their compact build, high capacity and ability to process crop, Tigo XR and Tigo PR loader wagons suit large dairy or cattle farms and contractors.

The maker cites the machines’ superior crop handling and chopping. The 25mm wide edges on the tines and the minimal space for the knives ensure good results. The feed channel behind the rotor is also much shorter than on earlier models, and this means the grass or other crop is pressed into the wagon faster with minimal contact between crop and steel.

Lely derived the concept for its Tigo PR loader and silage transport wagon

from the Lely Tigo XR, introduced last year.

The bulkhead design enables the user to transport 6m3 more crop above the shaft. This makes the unit shorter than comparable wagons with the same capacity. This bulkhead also distributes the weight so the wagon handles better on the road and has more manoeuvrability in the paddock.

The new chopping system has 40 knives and is easy to swing out using the tractor panel or two buttons on the left side of the wagon. Because of this, no tools are needed and no loose bolts are swinging about. The new central lock unlocks all knives at the same time.

The knives can then be easily removed without tools.

Lely says the most critical time when unloading a silage wagon is the start because the whole load has to move.

Depending on the model of the Tigo PR, the bulkhead takes 10-15% of the load with it. This means a lot less weight ends up on the bottom of the wagon so it takes pressure off the floor drive. As

The new Lely Tigo PR loader and silage wagons.

soon as the floor drive starts to move, the bulkhead, including the load, tilts backward, pushing on the whole load.

The Lely Tigo PR is the loader and

Tow and Fert

silage wagon for smaller New Zealand contractors who want to the advantages of a real combi wagon, the company says. The optional cover plate over the

feed channel means it can also be used as a transport wagon.

Tel. 07 850 4050 www.lely.com

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DAIRY NEWS DECEMBER 10, 2013

MACHINERY & PRODUCTS // 35

Bulk fert handler Walter Baumler tends an early model MAN diesel engine in a working display at the Agritechnica farm show last month in Hanover. Walter worked for MAN for 35 years.

A gamechanger GORDON COLLIE

WHERE WOULD farming and transport be with-

out the diesel engine?

Amongst all the high tech electronics and modern gadgetry at the world’s biggest farm machinery show in Hanover, Germany, earlier this month, a special tribute was paid to industry pioneer Rudolf Diesel.

The show featured an elaborate display tracing his life and times and some of the earliest diesel engines that moved farming and industry from the steam era.

Rudolf Diesel, who revolutionised engineering by designing and inventing the engine that still bears his name, died in September 1913.

About two million diesel engines are made annually worldwide to power farm machinery, cars, trucks, pleasure boats and ships large and small. At least one commercially made motorcycle has been diesel-powered, and somewhere there is a diesel outboard motor.

Diesel devoted his life to the creation of an engine that would outperform steam and burn less fuel. His first patent was registered in 1892 and the first large and bulky diesel test engine kicked into life in 1897.

Diesel engines were not used onfarm during the inventor’s lifetime. After his basic patent expired in 1907, engineers at Benz continued to develop the concept.

The technology was eventually refined and engines became small enough to fit into a vehicle.

DOLOMITE NZ’s finest BioGro certified Mg fertiliser For a delivered price call... 0800 436 566

NEW EXTRA-WIDE (650mm) chevron-patterned belting on Agriquip’s new Cub Tornado 6000 trailed tandem-axle fert spreader makes the machine ideal for bulky material such as chicken manure, the company says.

Features of the standard unit include 11.5/80 – 15.3 14-ply tyres, removable swivel hitch, hot dip galvanised frame and chassis, UV treated polyethylene hopper, zinc plated gears and sprockets, and stainless steel spinner discs and vanes.

The new-design spinners with taper bearings have gone on all Cub spreaders since early 2012, reliable even in harsh conditions. The Cub range is locally manufactured.

Says Agriquip, “Many changes have taken place to… deliver a product built to last, and simple to operate and maintain.”

Notably, larger galvanising facilities enable the whole chassis and frame, fully fabricated, to be dipped

60 Litre & 100 Litre Teat Sprayer S/Steel pressure tanks

Quality

A Tornado 6000 with an optional roll over cover and 400/60-15.5 traction 14-ply tyres. Load cell scales can be added to this model.

– the whole unit in one go.

The galvanised axle and walking beam is now bolted together to aid assembly and for ease of maintenance.

The rear control door is also a bolted assembly with built in Teflon wear guides.

New features: ■■ Improved removable ‘one piece state of the art’ HD swivelling

■■

■■ ■■ ■■

■■

tow eye New heavier drawbar/parking jack, stowed via swing away mounting system.

Zinc passivated shafts New modern graphics All new, snug fitting cover now available as an option Optional wheel tyre assembly upgrade.

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e e r

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ld t v er s o t r l

a a sm und PbPly c i a on 3 ro ions

s 1 it na ew 20d Cond a ” P y n s an

42 ever terM

wit

h

comprima s e m i -va r i a b l e r o u n d b a l e r Comprima F 155 and F 155 XC with semi-variable bale chamber are the first round balers that operate on the fixed chamber principle whilst producing bales of variable diameters that range from 1.25m to 1.50m.

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Combining the functions of both fixed and variable chambers, the semi-variable chamber is a unique system on the world market. Relying on the new NovoGrip system, the design combines quiet running with high baling pressure. Comprima F 155 XC features the X-Cut rotor cutter.

➥ 5 position angled insulator clips, now with tapered lead in ➥ New insulated handle prevents accidental shocks ➥ Galvanised spring steel shaft ➥ Hot dipped galvanised foot

How to fencing guides on you tube “strainrite fencing guides” www.strainrite.co.nz Contact your local rural supplies merchant or phone 0800 266 258

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DEALERS NATIONWIDE

DAIRY NEWS DECEMBER 10, 2013

36 // TRACTORS & MACHINERY

New telehandler comes with easier operating controls Revised Merlo Turbofarmer.

GARETH GILLATT

New Precision Seeders Working Well 6 Row Model at Waitohi South Canterbury sowing maize

TWO REVISED Merlo Turbofarmer models will strengthen the lineup with features such as forward/reverse controls to the main joystick, a more informative digital dash

and a roomier cab, says Power Farming New Zealand Merlo and Jay-Lor sales manager Ken Bill.

It recently launched Merlo Turbo models with a CDC (dynamic load control) safety system now mandatory on telehandlers sold in Australasia.

Bill says the system means all operators using Turbofarmer P34.7 Plus and P40.7 models will see up-to-date detailed information about the telehandler load being lifted as well as a cumulative record of loads to assist with the loading of trucks.

The 34.7 Plus and 40.7 both have three modes of steering says Bill. “Complete control and maximum traction at all times is guaranteed.”

Both the 34.7 Plus (102hp) and the 40.7 have more power thanks to a 140hp Deutz engine. Bill

With the boom and 3rd service controlled by electro proportional spools, minute movements are possible giving precise feel to the controls.

Indent options available include: • Front Mount Fert Bins • Telescopic and Folding Frames 6-18 rows • Economic Fodder beet planter options for single or shared dairy farm use • SAME machine suitable maize

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70-74 RACECOURSE ROAD, TIMARU TELEPHONE 03 688 2031 EMAIL paul@pwtractors.co.nz WEB www.paulwilkinstractors.co.nz SLURRY TANKER 4000-24,000 litre. Wide range of options including galvanising, auto fill, dribble bar and trailing shoe. From $25,000 + GST.

• Improved removable ‘one piece state of the art’ HD swivelling tow eye • New heavier drawbar/parking jack, stowed via swing away mounting system • Zinc passivated shafts • New modern graphics • All new, snug fitting cover now available as an option • Optional wheel tyre assembly upgrade now the more common 400/60-15.5 TR pattern

MIX MAX TMR DIET FEEDER 10-24 cubic metre. Unique feed flo mixing.

From $45,000 + GST.

Bill says operators will still see the green, amber and red lights but can also get feedback from the digital onboard screen which he says will serve multiple functions. “This also becomes a reverse camera screen when selecting reverse – another added safety feature.”

The CDC system also makes it easier for the operator to shift between attachements, says Bill.

With a Merlo-produced attachment, the reader installed on the headstock identifies the implements’ capacities and de-rates the lift capacity automatically if applicable. There is also a manual feature for forks and bucket operations.

According to Bill, the Italian telehandler manufacturer has adapted the dashboard while still maintaining the widest cabin on the market, with near to no blind spots.

VERTICAL AUGER DIET FEEDER 10-30 cubic metre. Single and twin auger.

From $42,000 + GST.

XCEL 1250 MUCK SPREADER 12-15 tonne. Spreading up to 22m. Spreads both liquid and solids. Unique chopping system has the ability to handle foreign objects.

sales@agriquip.co.nz • www.agriquip.co.nz

PH: 06 759 8402 FOR YOUR NEAREST DEALER

Contact: DENIS MADIGAN Hi Spec New Zealand Ph 03-693 7377 • 027-497 7299 denis@hispec.net.nz • www.hispec.net

A more informative digital dash.

says the P40.7 can boast better usage of power when needed thanks to direct communication between the hydrostatic transmission and the 140hp Deutz electronic controlled power unit.

The 140hp model also has the higher flow load sensing hydraulics that allow operators to operate more than one hydraulic function at a time.

With the boom and 3rd service controlled by electro proportional spools, minute movements are possible giving precise feel to the controls.

Power Farming and its dealer are training their sales and service staff, “enhanced recently with the additional training facilities included in the recently refurbished head office premises.” www.powerfarming. co.nz

DAIRY NEWS DECEMBER 10, 2013

TRACTORS & MACHINERY // 37

German tractor wins machine of the year series tractors have won 2014 Tractor of the Year and 2014 Machine of the Year at Agritechnica farm machinery expo in Hannover, Germany.

The international Tractor of the Year award is presented every year by 23 agricultural journalists. Machine of the Year

transmission management system.

“The stepless transmission is operated using the Cmotion operating lever, one of the most ergonomic controls on the market,” their citation read. “The CEBIS control terminal also allows the operator to make extensive adjustments. The easily-adjusted

concept in its tractor division… economy, efficiency and comfort.”

Claas entered the tractor market in 2003, buying 51% French manufacturer Renault Agriculture and achieving 100% ownership in 2008. The com-

THE NEW

“Claas is following the right concept in its tractor division… economy, efficiency and comfort.” is presented every second year by the editors of the German agricultural publisher, Deutscher Landwirtschaftsverlag.

Both awards were made to the range-topping Axion 850, fitted with continuously variable transmission and the maker’s Cebis control system. The judges are said to have been impressed by the tractor’s simple engine/

pany now makes at least 40 different models in four ranges 75-525 hp.

Claas tractors are distributed in Australia and New Zealand by Landpower through 26 Claas Harvest Centres and independent dealers.

Introducing the new generation PX Series from Kioti. The New Zealand tractor market has just changed for good.

engine torque function for various types of operation lowers fuel consumption and increases economic efficiency.”

Claas global sales managing director Jan-Hendrik Mohr says both awards are special to the company. “We are celebrating 10 years of Claas tractors and our 100th anniversary.

These awards confirm Claas is following the right

SERIES

Remote farm support gains farmer fans

PX1002 - 100HP

SECURE, WEB-BASED connections to farms – for

• • • • •

Perkins diesel engine 32 x 32 power shuttle Hi/low powershift transmission Hi-flow hydraulic pump Self-leveling loader with 3rd service

TRACTOR & LOADER PACKAGE

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POW0294_DN

remote consultations with, say, vets, are gaining farmers’ attention, says DeLaval.

Remote-connected farms reduce the need for physical visits by service technicians, vets, nutritionists and even financial advisors.

Recent installation data from DeLaval (the company cites 2000 installations in the last 12 months), shows that remote farm control raises the control and efficiency of farm management, the company says. And farmers are discovering the benefits of remote consultations with external experts.

Farmers needing support and advice need no longer rely only on local experts.

They can also consult veterinarians, nutritionists and financial advisors from further afield. And when the farmer is away from the farm, the farm’s computer can also be accessed via a secure web-based connection.

“Remote farm connections enable us to support our farmer customers more,” says Shaul Tcherikover, business development manager, farm management support systems, DeLaval International.

“This kind of remote access provides us with the opportunity to support the farmer more rapidly and more accurately than before as we are no longer confined to actual visits if we require farm data to make a decision” “A remote farm connection allows farmers to give permission to our field technicians and other professionals to access the farm computer and provide aid, advice and support.”

+gst

CLAAS AXION 800

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kiotitractors.co.nz

DAIRY NEWS DECEMBER 10, 2013

38 // TRACTORS & MACHINERY

Tractor challenges on specs, price, ability SPECS, PRICE and per-

formance considered, the new 100hp Kioti PX1002 tractor challenges betterknown competitors, says Power Farming national tractor manager Brett Maber.

In the small to mid-

PX1002 is the biggest of the new Kioti tractors launched this year.

size market this machine has the power and specs to suit most implements and jobs on a medium-sized property, Maber says.

The brand is made in South Korea by Daedong Industrial Co Ltd, in the farm machinery business

Get a GREAT RATE on a TOUGH New MATE!

since the 1950s. Its products are sold in at least 30 markets.

The PX1002, biggest of the new Kioti tractors launched this year, “punches well above its weight,” Maber says.

“It’s powered by a Perkins 4-cylinder 100hp diesel engine and has a Europeanbuilt synchromesh transmission with power shuttle. Kioti has… lifted performance in the new models by adding a second solenoid to the power shuttle to improve the smoothness of direction change, making them a

challenge to competitors.

“Three speed PTO with a ground speed-based economy option and automatic shutoff, working with a 79.2L/m combined hydraulic oil flow, enables them to handle virtually any implement found on a medium sized property.”

Well spec’ed in its category, and priced at $69,990 including loader, the PX1002 costs about $10,000 less than competitive tractors with similar specs. Backup, warranties, service and parts supply makes it good value for money, Maber says.

MF5400 SERIES CHECK THIS MATE 82 – 107 hp Powerful Perkins engine.

Dyna 4 semi-powershift transmission (16F/16R).

Superb power to weight ratio.

Unique styling enhances visibility for loader work.

New design delivers exceptional ground clearance.

FEATURES OF THE PX1002 ■■

Total of ten lights on cab, bonnet and rear.

■■

Full air conditioning, radio-CD player with USB input, and heating/cooling box

■■

All-round visibility from the six-pillar cab with opening rear window; wipers front and rear

■■

Tilt-adjustable steering wheel and instrument panel; power shuttle lever that enables easier and softer shuttle operation without using the clutch pedal, and with the ability to alter the speed of transition in direction change

■■

An electro clutch and press button highlow selection on the gear stick for clutchless gear changes.

■■

New hi/low transmission with 32F/32R.

■■

Hydrostatic power steering with planetary gears on front axle easy steering and manoeuvrability.

■■

Electronic automatic PTO engagement with headland management system that automatically disengages/engages when three-point linkage is raised/lowered.

SEE YOUR NEAREST MASSEY DEALER FOR AN UNBEATABLE DEAL. North Island

South Island

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Power Farming is also launching the Kioti PX9020, a 90hp ROPs machine with similar specifications.

The company has sold Kioti (pron. ‘coyote’) tractors in New Zealand and Australia for 10 years, selling 10,000 units to date. www.kiotitractors.co.nz

You can't manage...

...what you don't measure Cow friendly phenomenal production increases have been realised in New Zealand with the Lely Astronaut A4 Robotic Milking System. Farmers can now milk 24/7 and more than three times a day for high producing cows.

With the Lely Astronaut A4 you can monitor cow health, fat and protein, somatic cell count and more!

For more information on how you can get more out of your farm, visit www.lely.com or contact your local Lely CenterTM. Call today to visit a Lely Astronaut robotic milking farm near you. *InHerd available to existing Lely customers after May 2014

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