Dairy News 30 August 2016

Will high cow cull result in less milk? PAGE 4 FOOD OR MEDICINE?

Pharma foods arrive PAGE 20

INFANT FORMULA BOOSTS GROWTH

a2 Milk’s success PAGE 6

AUGUST 30, 2016 ISSUE 363 // www.dairynews.co.nz

SUPPLY STALLS, PRICE KICKSTARTS Farmers can expect more milk price rises this year. – Nathan Penny, ASB. PAGE 3

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DAIRY NEWS AUGUST 30, 2016

NEWS // 3

Supply stalls, expect more payout lifts SUDESH KISSUN sudeshk@ruralnews.co.nz

Uproar over bank closures.

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NEWS ������������������������������������������������������ 3-17

FARMERS CAN expect more lifts in milk payout this year, says ASB rural economist Nathan Penny.

Fundamentals are strongly pointing towards rapid supply corrections worldwide, “so prices will need to go up,” Penny told Dairy News.

ASB is still forecasting a $6/kgMS payout for the season.

Penny points out that dairy futures prices are higher than the last GlobalDairyTrade auction; the next auction on September 6 is likely to deliver another price rise.

Last week Fonterra lifted its farmgate milk price by 50c/kgMS; when combined with the forecast earnings per share range for the 2017 financial year of 50-60 cents/share, the total payout available to farmers in the current season is forecast to be $5.25-$5.35 before retentions.

Penny says if prices hold up as expected, there will be a few more price rises this season. But he cautioned it was still early days.

“We still have a long time to go; the season is just three months old and we haven’t moved into our peak production.”

Nathan Penny, ASB.

During the previous two seasons, farmers were told to expect prices to rise towards the end of the year but prices remained subdued.

Last year El Nino weather was forecast and this was expected to hit milk production, but it did not materialise.

This season, greater cow culling has led to smaller herds and milk production is sure to dip.

SCOPE FOR OPTIMISM

OPINION ����������������������������������������������18-19 AGRIBUSINESS ����������������������������� 20-21 MANAGEMENT �������������������������������22-23 ANIMAL HEALTH �������������������������� 24-25 MATING MANAGEMENT ������������������������������26-30 MACHINERY & PRODUCTS �������������������������������������� 32-34

FEDERATED FARMERS dairy chairman Andrew Hoggard says the 50c boost to the payout will lift farmer optimism and even more usefully will ease their bank managers’ worries.

“It’s still early days but this is a very positive signal for the guys out there who are struggling and need to know there is some relief in sight.

“This will give farmers cash in their bank accounts now and it will make their bank managers much more cheerful.

“Internationally markets are still volatile and we don’t want to rely on the global trading trends just yet, but this is a positive move and gives us room to be cautiously optimistic,” Hoggard says.

Fonterra chairman John Wilson says current global milk prices remain at unrealistically low levels, but have started to improve as global demand and supply continue to rebalance.

“Milk production is reducing in most dairying regions globally in response to low milk prices and this is bringing the world’s milk supply and demand back into balance.

“Milk production in the EU is now in decline and our New Zealand milk collection at this early stage is around 4% lower for the year to date.”

Prices have increased on GlobalDairyTrade but the increasing NZD/USD exchange rate continues to offset some of these gains.

Wilson expects the dairy market to be volatile over the coming months.

“We will continue to keep our forecast updated for our farmers as we move into the season,” he says.

Fonterra is required to forecast its farmgate milk price every quarter under the Dairy Industry Restructuring Act (DIRA).

DAIRY NEWS AUGUST 30, 2016

4 // NEWS

Will high cow cull mean less milk?

“However, fewer cows does not necessarily mean less milk pamelat@ruralnews.co.nz production. This was 1.5% down in 2015-16 and is estimated to decline NEW ZEALAND will be milking by a similar level again this season, fewer cows this season after two but it will depend on the weather seasons of heavy culling, but it and whether milk prices increase may not translate to less milk, says or not.”

ASB rural economic Nathan DairyNZ. The cow cull has risen much Penny says the reduction in higher over the past two seasons to the NZ dairy herd is big and May 31, DairyNZ told Dairy News. unprecedented.

The estimated 5% (about The cull increased 201,017 in 2014-15 to 1.084 million, and 300,000 head) reduction in the increased a further 63,931 to herd is the largest on record. Also, 1.148m in 2015-16. This includes it comes on top of last season’s 3% beef, reasonably consistent at fall.

“Indeed a back-to-back fall in 150,000-160,000 head.

“This would have translated to the NZ dairy herd is also a first,” he fewer cows milked last season and says. Based on information this,” a DairyNZ spokesman says. received in-market, there has also “It is estimated we will milk been a big lift in EU cow slaughters, 4.75-4.8m cows this season, down Open Country suppliers have been from the peak of 5.018m in 2014-15. told.

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All the main dairy producers posted sharp year-on-year increases in cow slaughters in April with German slaughter up 16.3%, says Open Country chief executive Steve Koekemoer, in a newsletter.

UK slaughter also increased in May bringing the cumulative UK slaughter for the year to the end of May and ahead of last year at 260,400 head, up 12.2%.

Dutch slaughter was also up 9.2% on last year. French slaughter spiked in May, up 17.7% to 138,750 head, bringing the French for the season to the end of May to 742,130 head, up 5.8% on 2015.

“Data for Europe does not distinguish between beef and dairy cow slaughter so it can be assumed a portion of the total cows slaughtered include beef cows but the trend is up.”

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Bobby calves seen getting better deal PETER BURKE peterb@ruralnews.co.nz

MPI SAYS with the calving season

now in full swing it is noticing better calf welfare right along the bobby calf supply chain.

But it says some people still need to change their practices to ensure all the new bobby calf regulations are met.

New welfare rules in force since the end of 2015 are aimed at further improving care of bobby calves; some rules kicked in on August 1.

MPI’s director of verification services Chris Kebbell says everyone in the supply chain has a role in the welfare of bobby calves. What MPI has seen and heard so far is promising; most people are following the rules.

“We acknowledge that the majority of farmers, transporters and processors who have always cared for young calves are meeting the regulations with ease; but we remind the minority that they have an obligation to care for calves and they face infringement fines or prosecutions if they don’t.”

Kebble says the four regulations introduced this season require: calves

must be fit for trucking, a truck journey must not exceed 12 hours, no killing of calves by blunt force to the head, and no shipping calves across Cook Strait. These regulations give MPI extra powers to deal with people not meeting their obligations for calves’ welfare.

“The key area we have noted that could be improved by the minority is ensuring calves are fit for transport. Farmers should not rely on transporters to make the decision on fitness for transport as farmers are in the best position to know the animals. That means making sure calves are at least four days old, are properly fed to manage the stress of transport, are free from signs of injury or disease, are alert and have firm hooves and dry navels.”

Kebble says MPI also encourages farmers, truckers and processors to communicate better with each other so that only healthy, well fed calves are selected for trucking, that stress on calves is minimised during collection and trucking, and that truck journeys are planned and kept as short as possible.

More information on the regulations is on the MPI website www.mpi.govt.nz/ calves or by email animalwelfare@mpi. govt.nz

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DAIRY NEWS AUGUST 30, 2016

NEWS // 5

Bank branch losses add to drought, low payout PAM TIPA pamelat@ruralnews.co.nz

RURAL NEW Zealand

has endured droughts, floods, snow and a dairy downturn in recent years, says Rural Women NZ vice-president Fiona Gower.

Now the closure of Westpac branches would deal another blow to struggling rural towns, Gower says. And it is just the “tip of the iceberg” of pressures on smaller rural regions.

“Some of these businesses are struggling anyway and then they will have to travel to do their banking: three quarters to an hour trip one way, taking another staff member out, is added pressure on all of them,” says Gower. “They will start looking at what they are doing.”

RWNZ issued a statement on the bank closures two weeks ago, kicking off a round of protests in affected rural towns. An economist has also come out criticising the move as part of a general trend of declining economies in NZ small towns.

Gower says RWNZ sees it as unacceptable that rural communities lose these facilities. Rural towns are being hit hard,

she says.

“We would like Westpac to think about what options they could choose to keep some banking services in these towns.

“Businesses are being taken away -- or services.

Many people, if they can travel, will travel and do business in bigger towns, taking more business out of our rural communities.”

Rural firms need that business because the rural sector is the backbone of NZ’s economy.

“We are concerned about the centralisation; not just the Westpac one; it is the tip of the iceberg when you talk about other services as well.”

Westpac had not responded to RWNZ when Dairy News spoke to Gower last week. She was planning a Wellington trip to talk to chief executive Penelope England about

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writing to Westpac asking them to consider alternatives. She was hoping they may leave some kind of service such as drop boxes or agencies.

“I heard asked on the radio the other day, why can’t they have mobile banking? We have mobile surgical buses and mobile dentist buses, why not

a mobile bank? To look at the options would be great.”

She notes protests in various regions: the mayor of the MacKenzie District Council is concerned that Fairlie and Ranfurly are losing their services.

“I have had a lot of reports from my members, especially those

affected by the Takaka closure because it is a long way from Golden Bay to Nelson.

“They are concerned about it as well, not only for the people doing their banking; the people are saying ‘oh well if we have to bank we will go to town’ so local businesses will miss out.”

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ONLINE BANKING CHIPPING AWAY OUTLETS WESTPAC PROPOSES to close 19 branches throughout New Zealand, many of them in rural towns.

Westpac says it will close the branches because of increasing use of online banking services.

RWNZ’s concern is that while this may be correct nationally, the statistics in rural areas may

not have been looked at.

“For many in these rural areas online banking is not an option due to poor or nonexistent internet services or cellphone coverage; the speed does not allow efficient use of internet services,” RWNZ says in its statement.

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DAIRY NEWS AUGUST 30, 2016

6 // NEWS

Infant formula feeds growth PAM TIPA pamelat@ruralnews.co.nz

‘EXCEPTIONAL’ GROWTH in sales

of its infant formula brand a2 Platinum in Australia, New Zealand and China saw a2 Milk Company’s revenue grow 127% in the last financial year.

Total revenue was $352.8 million and net profit after tax was $30.4m, versus a net loss after tax of $2.1m in the previous year.

Sales of a2 Platinum in Australia, NZ and China were $212.4m, up 414% on the previous year, says Geoffrey Babidge, managing director and chief executive.

Infant formula accounted for 61% of group revenue, up from 27% on the previous year, the results show. a2 Platinum continues to be the fastest growing Australian infant formula brand, the annual report claims.

Market share in Australia at year end was about 16%. It is number three brand in the infant formula category in supermarkets and pharmacies.

The ANZ segment of the business made profit before tax of $84.7m.

The a2 Milk Company continued

paying a high farmgate price to ANZ farmers, the annual report says.

The growing success of a2 Platinum in China is based “on the well established reputation of the a2 Milk brand and company in Australia”.

“Direct sales into China increased significantly in cross border e-commerce channels (ANZ label) and mother baby retail stores (China label); China achieved over 800% growth of infant formula sales the 2015 year,” the report says.

The nutritional range expanded with whole milk powder to meet increasing demand for fortified products.

The UK business financials improved as the business shifted from a fresh milk focus to a broader strategy, Babidge says.

The US business focus is on growing distribution, consumer awareness and demand for a2 Milk.

The company spent more on international growth and brand development --

from $15.2m in 2015 to $20.5m.

In the 2016 financial year the company continued shifting from branded dairy products to nutrition,” Babidge says “Continued growth in the ANZ business, and infant formula in particular, has underpinned our investment in targeted overseas markets and each of those

positions was expanded during the year.

“In China, there was a marked increase in sales of a2 Platinum infant formula and a further expansion of the company’s supply chain following changes to distribution in the previous year, [hence] a focus on understanding and adapting to changes in the regulatory environment for infant for-

mula products in China.

“The increase in demand for a2 Platinum infant formula in Australia and China during the first half created challenges in balancing supply, production and logistics, met in conjunction with our manufacturing partner Synlait and by expanding milk supply from farms in NZ.” Babidge says in the US a2 Milk has been building distribution of fresh milk in California since its entry in April 2015 and now distributes to 1800 stores.

Progress has lagged because of delays in distribution via some larger retailers, but this “does not affect the fundamentals... of a highly attractive market”.

“Meanwhile, we are pleased with [increasing] sales of fresh milk in the UK and the improvement in financial results.”

Sales in Australia, New Zealand and China have boosted a2 Milk’s growth.

2015

DP0011 Harmony_Dairy News 200x265mm v1.indd 1

1/09/15 3:57 pm

DAIRY NEWS AUGUST 30, 2016

NEWS // 7

Feed reviewer coming to see you NIGEL MALTHUS

THERE’S STILL time for dairy farmers in Canterbury/North Otago to take advantage of a spring feed review offered by DairyNZ to help them fine-tune their feeding regimes through calving.

The review is now in its second season, with a team of advisors heading out for one-on-one sessions with individual farmers.

Dairy NZ says the review, paid for from the milksolids levy, is to give farmers confidence during a low milk-price period when decisions in early spring will be even more critical than usual.

The idea is to help

them manage feeding through the all-important period between the start of calving -- when they are likely to be reliant on feed either bought in or stockpiled -- and the balance date around late September, when their own spring pasture growth should be enough to supply their milking cows’ requirements.

Central to the initiative is the spring rotation planner tool, available online and in downloadable versions on the DairyNZ website, which helps quantify feed needs.

Team leader Virginia Serra says advisors visiting individual farms can then review how the plan is working.

“We assess how much

Waller retires from Fonterra INDEPENDENT FONTERRA director John Waller is retiring this week from the co-op board.

Waller is retiring to reduce his workload; he has served on Fonterra’s board since 2009, chairing the fair value share review committee, the trading among farmers due diligence committee and the milk price panel.

Fonterra chairman John Wilson paid tribute to Waller’s service.

“John has been an outstanding director and has made an invaluable contribution [with] his strong personal values, John Waller drive and leadership with commercial common sense.

“I am pleased… John is finding the time to rebalance his commitments so he can spend more time with his family and pursue his other interests.

“John has been a good friend and a source of wise counsel for me and his fellow directors and we are all grateful for his careful analysis and judgment and the energy and commitment he brought to everything he did for the cooperative.”

Fonterra will replace Waller in due course.

Waller says he has enjoyed eight years on the Fonterra board and seen the co-op develop into a strong position to deliver increasing returns to its farmer shareholders.

“Fonterra is unique in many ways and has its fair share of challenges, but I leave the board confident that ground-breaking solutions like TAF (trading among farmers) and the commitment I have seen right across the business to create value for farmers will further unleash Fonterra’s potential and ensure it can weather the global storms that are now a fact of life.

“I have been a strong believer in Fonterra and its farmers from the start and will continue to follow with close interest as they take the goodness of dairy and New Zealand to the world.”

the cows are eating: Are they getting enough? Are they getting too much?

All those questions, and whatever questions the farmer may have.

“Last year everybody was short of pasture. It was a difficult winter and most farmers we saw were in deficit. This year in Canterbury we have had a

Virginia Serra, DairyNZ

good winter.”

Even so, she says, farmers’ feeding allocations may need small adjustments.

“That is the main thing we’ve been talking to farmers about.

“They may think they’re offering the cows this amount; but we measure the area, and we mea-

sure the grass, and find that’s not the case.

“But it’s just a small adjustment. This year it’s going quite well.”

With herd sizes changing daily as cows calve and start milking, feed amounts needed to be recalculated daily, she says.

Six consulting officers

including Serra were available for the area between Kaikoura and Dunedin, including Central Otago.

Farmers interested in taking up the offer can register on the DairyNZ website. Numbers are capped at 120 and about 55 had so far taken it up. @dairy_news facebook.com/dairynews

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DAIRY NEWS AUGUST 30, 2016

8 // NEWS

Feds stands down as farmers’ spirits rise PETER BURKE peterb@ruralnews.co.nz

FEDERATED FARMERS president for

Rotorua/Taupo says he expects most farms near Rangitaiki on the Napier Taupo road will be hooked up to the national grid in the next week or so.

Since the huge snowstorm three weeks ago

most farms in the region have used generators because of damage to the electricity supply.

Alan Wills told Dairy News that the region is ‘semi alpine’ so events such as the snowstorm happen from time to time.

Feds has now finished helping the region’s farmers, who have come through the event pretty well and are in good spir-

its, Wills says.

“Just after the storm the feds network organised supplements for farmers who needed it.

But most of the farms were pretty much self contained and a lot of the big farms had plenty anyway.

“We also put out an appeal for casual labour and again the big corporates were fine but a few people went down

there to fix up fences and another group went down for an afternoon to milk cows on a farm so the guy could give his staff a rest for the afternoon. At that stage there was still half a metre of snow around the shed.”

Wills says calves were lost during and immediately after the storm.

“A young calf born in a metre of snow has little

The storm knocked out power supply to farms.

chance of surviving. A few adult stock were lost. One big farmer said he’d lost four out of one thousand cows which is insignificant.”

Restoring power has been difficult and complex, the nature of the terrain where the damage

occurred posing unique problems, Wills says. The power company Unison told him that even if they had more crews working they could not get the replacement equipment to them.

“There were also issues with generators: initially

some were too small and weren’t powering the houses particularly well.

They needed about 5.5kW to power a house and anything under 5kW wouldn’t heat the water. But that’s all sorted now.”

The generated power was critical to water stock.

Award for mental health scheme A NEW Zealand rural mental health scheme has won an Australasian award.

GoodYarn has run mental health workshops for at least 800 farmers and rural professionals since it was set up earlier this year.

Its work was recognised in Auckland last week when it was named joint Best Mental Health Promotion/Illness Prevention scheme at the Australia and New Zealand Mental Health Services conference.

GoodYarn shared the top prize with eTools for Wellbeing, by the Queensland University of Technology and Young and Well CRC. The winners were selected by experts from NZ and Australia who were looking for “ground-breaking” excellence and innovation.

GoodYarn workshops help rural professionals and farmers understand mental health and wellness. Participants get tips on how to stay healthy, recognise stress in others and respond effectively.

The scheme was developed by DairyNZ and WellSouth -- the latter a primary health organisation in Otago and Southland -- as part of the Transforming the Dairy Value Chain (TDVC) Primary Growth Partnership. It is run nationwide by organisations including Farmlands and branches of the Rural Support Trust.

DairyNZ chief executive Tim Mackle says the award is great recognition for the scheme.

“The GoodYarn workshops have been particularly useful in supporting farmers through recent seasons where reduced milk prices have put pressure on our industry,” says Mackle.

“Some 400 people attended DairyNZ’s GoodYarn workshops and another 400 attended the workshops led by other organisations. This has led to rural professionals and farmers being more confident in talking about mental health and referring farmers who need support.”

More TDVC-funded workshops are

coming in September and October for rural professionals.

GoodYarn was developed by Wellsouth, and DairyNZ worked nationwide to increase capability and reach farmers. The scheme is now offered via a licence so organisations can train their own staff.

WellSouth project manager Louise Thompson says her organisation is honoured by the success, which she put down to great consultation in its development.

“We talked to a lot of people living and working on farms, organisations and representative groups that support farming and businesses in the farming sector. We asked them what they thought could work, what a rural mental health programme could look like, and the issues it could address.

“Blending those insights with research on what has worked elsewhere in the world resulted in a programme meaningful, relevant and engaging.”

MPI director-general Martyn Dunne

agrees.

“It’s important that everyone working in our rural communities can recognise when they need help and know help is available,” he says.

“We are proud to be able to support such a great initiative helping in a way that works for the rural community. This award is fitting recognition for an initiative that truly has peoples’ wellness and wellbeing at its heart.”

The award was presented to GoodYarn representatives by Kevin Allan, mental health commissioner, Office of the Health and Disability Commissioner, NZ. It was one of eight mental health awards made in the service and programme categories, along with three awards for exceptional contribution, three awards for research and four awards for news media.

The MHS Conference this year is celebrating the 25th anniversary of its

Tim Mackle

awards programme. It is hosted by local mental health organisation Te Pou o Te Whakaaro Nui. The TDVC programme is a sevenyear, $170 million scheme seeking to create new dairy products, increase onfarm productivity, reduce environmental impacts and improve agricultural education and health.

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DAIRY NEWS AUGUST 30, 2016

10 // NEWS

Animal welfare now a trade pamelat@ruralnews.co.nz

CUSTOMERS AND

society have growing expectation that animals used in food production are managed in a way that ensures their welfare is not compromised, says Lindsay Burton, general manager of risk management at Fonterra.

To satisfy this requirement retailers and consumers are seeking evidence that the production system is being operated in a way that gives them confidence the health and welfare needs of the animals are being met.

Globally there is a significant and increasing interest in whether food has been sustainably produced, including animal welfare systems,

Burton says.

The industry must now take into account consumer beliefs, with their broad spectrum of views, and general societal beliefs, he told the NZ Veterinary Association conference.

He was presenting a paper on ‘A milk processor perspective on global customer perceptions on animal health and welfare and related trade aspects’ to the conference.

“People who have views on food production systems may not be consumers of your product but may well have a view on the products you produce,” he says.

“We have regulators influencing things nationally – frequently reflecting societal beliefs and things they think need to change, and we have international regulators.”

Key customers such as Nestle also have their own requirements, he says. They determine what they are prepared to put in front of their customers.

“We have company policies and standards; they cover product types, safety, market acceptability and financial viability. They deal frequently with ethics and values so they start to speak to things like trust and source and doing the right thing in production systems.”

Consumer thinking is an influence: a sector of the population believes organic milk and milk products are better than those using conventional technologies. Those beliefs will cover things like animal health and animal welfare. Organic milk has high market acceptability and is

The recent media attention around treatment of bobby calves may infuence consumers of dairy products, says Fonterra general manager risk manageent Lindsay Burton.

financially viable.

“We as a food processor, and veterinarians as a profession, can have multiple views on a lot of the animal health and animal welfare aspects of organic production systems. But we have a

consumer belief which speaks to all those and produces a viable market.”

With raw milk some people believe it is better for you than milk produced by conventional farming systems. The processor has a different view based on business

risk and food safety.

When safety risk is assessed, a significant reputational risk for the cooperative exists with this product. This is not saying the processor is right or the consumer is right; but in the processor’s view there is

an unacceptable risk of harm to consumers.

“You make a business call; you have a consumer belief, you have a processor perspective gained from other information, and overall the call is made.”

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DAIRY NEWS AUGUST 30, 2016

NEWS // 11

and society issue of young calf welfare, people who may not be consumers of your product were gaining media attention here and offshore. They may not consume the product but they may influence those who do.

The animal rights groups had different perspectives on the animal right issues than the farmers. For instance, on early separation of calves farmers were saying that without that

consumer and public perceptions.

Farm systems may never be able to satisfy the demands of those influencing opinion such as animal rights groups, as some have the objective of eliminating entirely the use of animals from food production systems.

“But you can do your best to ensure that what you are doing in your systems meets high standards,” Burton says.

Ultimately regulators,

in the international environment.

International competitors have their own views and they are quite open and quite happy to put those into the international marketplace.

“We have competitors influencing the consumers. There is

food companies. We have standard-setting bodies like ISO, researchers, public lobby groups, consumers and society which is generally influenced by a range of things. So you need to think about what will influence the consumers’ opinions and how you will

a mix of views and we have to consider how we respond.”

In the end, for all these issues you need to clarify who are the key influencers of opinion.

“We have regulators, NGOs and key customers, and those key customers may be large multinational

respond.”

In any large business including Fonterra you develop policies and standards covering these areas. It has policy standards on biosecurity, animal health and animal welfare. The standards apply right across the supply base,

not just in New Zealand.

They include standards applying to the purchase of ingredients. “We ask that of those supplying us.

Similarly others ask that of us as well.”

You analyse the risks, look at the gaps, determine whether you will close those gaps or not.

Farm systems may never be able to satisfy the demands of those influencing opinion such as animal rights groups, as some have the objective of eliminating entirely the use of animals from food production systems. separation the survival and rearing of the calf could be compromised.

The cow could also be compromised by the management of mastitis.

“Was it a reputational risk? Of course it was a significant reputation risk.

Was there a regulatory response? We are seeing one right now.”

There was regulatory response in terms of what is acceptable practice.

There is also a cross sector response from farm to processor. The views being expressed and published in the media -- whether mainstream or social media -- were influencing

processors and key customers have to make a judgment call on the information available.

On antimicrobials use, Burton says we need to ask ‘do we have good information on how much is used and on what basis?’ How valid are the claims, what action should be taken and from a processor perspective who should be taking them? If change is needed, who can make that happen effectively? From a food production perspective what business risk and mitigation methods should be put in place?

“We are marketing

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“You cannot afford not to do that. You then have to go through those risks – whether they are real or imagined, whether they can be managed and if you are going to manage them, how are you going to manage them.”

Burton was asked how you communicate complex issues to audiences who are getting their message from social media.

“You need a really good understanding of the audience you are trying to get your messages to. There may be people who have no tertiary qualification and limited schooling, but others are highly qualified people so you have a wide diversity of understanding.

“All too frequently we risk dumbing-down our messages in the belief that people wouldn’t understand them.”

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DAIRY NEWS AUGUST 30, 2016

12 // NEWS

a2 Milk reaffirms deal with Synlait SYNLAIT AND a2 Milk

(a2MC) have announced a new supply agreement between the two groups for the production of a2 Platinum infant formula.

It is for a minimum term of five years, and provides for a rolling three-year term after the first two-years.

John Penno, managing director and chief executive of Synlait, says its a2 milk suppliers will be pleased with this agreement as they’ve adapted their farm businesses to supply a2 Milk.

“They create value by differentiating milk behind the farmgate and receive a premium payment to recognise the value they create. The term of this

YASHILI TO SUPPLY DANONE YASHILI NEW Zealand Dairy Co has agreed to sell as much as $18.7 million of base powder dairy products to Danone under a contract that will run until the end of the year.

The deal is disclosed in a notice to the Hong Kong Stock Exchange.

Danone bought a 25% stake in Yashili, itself a unit of China Mengniu Dairy Co, in 2014.

agreement with a2MC gives them increased certainty in an uncertain time for the dairy industry,” he says.

The agreement strengthens the current business relationship between a2MC and Synlait by providing cer-

Yashili NZ Dairy, a joint venture between Yashili and Mengniu established in 2012, invested $220 million in a dairy plant in Pokeno capable of producing 52,000 tonnes a year of infant formula.

Danone’s subsidiary Danone Nutricia ended its supply contract with Fonterra after the false botulism scare.

tainty about medium term growth plans, the two companies say.

Production volumes remain the same, but appropriate provisions have been made to allow for increased scale to meet market demand in the medium term.

Geoffrey Babidge, a2MC managing director and chief executive, is pleased with the deal.

“We’ve maintained appropriate flexibility to assess new product and market opportunities as they arise,” he says.

Penno says they started

a2 Milk chief executive Geoffrey Babidge.

working with a2MC in 2010 to manufacture the world’s first infant formula made from milk exclusively containing the A2 beta-casein protein.

“Our businesses have grown significantly since then and this agreement deepens an already strong relationship,” Penno says.

The agreement includes the following key terms: ■■ Committed supply

by Synlait up to a prescribed infant formula (IF) product volume.

■■ Synlait will have exclusive supply rights up to a specified infant formula product volume and a right of first offer for certain additional volumes, in both

cases in respect of the infant formula stages 1-3 already supplied

by Synlait and for sale by the a2MC group in China, Australia and New Zealand.

■■ In return, a2MC will be Synlait’s preferred customer, with committed production capacity and access to new technologies, and continued favourable and competitive pricing terms.

The companies will cooperate to forecast demand and supply for a2 Platinum, particularly as

regulations evolve.

The contract also includes a steering committee structure to help the parties manage the contract and their business relationship.

Babidge says the new agreement is positive for both a2MC and Synlait as it clarifies the medium term manufacturing and supply arrangements for a2 Platinum infant nutrition products.

Penno says they have assessed their production commitments to all customers.

Check out our websites BREAKING NEWS MANAGEMENT STORIES MARKETS & TRENDS MACHINERY REVIEWS COMPETITIONS AND MUCH MORE...

www.dairynews.co.nz

DAIRY NEWS AUGUST 30, 2016

NEWS // 13

Kids swap books for gumboots have been learning more about their community’s ecosystem via Living Water, a scheme devised by Fonterra and the Department of Conservation (DOC).

They are looking at how to improve water quality, control predators and increase habitat for native wildlife.

They aim is to teach them environmental principles and values through hands-on, reallife experience in nature, says Wetland Ecosystem expert Robyn Irving.

Cody Unkovich enjoyed getting his hands dirty: “The part I liked best about the day was learning about the different pests and how they damage the earth,” he says.

Botanist/educator Irving says including more natural education opportunities in experiential learning environments is vital to children’s wellbeing.

Outdoor classrooms could even become a norm.

“There’s lots of talk about the benefits of kids getting out and about in nature – how good it is for them to experience more of the outdoors.

“We have some big concepts for children to grasp, like water quality and the impact of land use on ecological health; they grasp it much better when they can engage and experience these things for themselves.

“Fonterra and DOC have a long term vision for sustainable dairying and the environment, where farming works alongside nature. These kids are a big part of it, and it’s nice to think we can influence their future behaviour in a positive way.

“If they understand they’re part of a

bigger vision, we’ll see eventually places like the Waikato peat lakes will become healthy natural ecosystems again.”

Mike Paviour, Living Water’s Waikato site leader, says developing the scheme is a vital part of the partnership’s long term success.

“It’s great for us to do these things, but real success is lasting change. We need kids to understand why we’re spending so much energy and resource on restoring and caring for our environment.”

Living Water tailors each wetland learning experience to suit a school’s specific education objectives.

“The children can pick up information to transfer to other parts and times in their lives.

We’re teaching them they can be involved in conservation solutions, and empowering them with the tools and understanding they need to contribute,” Paviour says.

Fonterra general manager of responsible dairying Emma Parsons says Living Water signals a big shift in environmental values in the business community.

“At Fonterra we recognise that a healthy ecosystem is the key to a sustainable economy. So engaging kids in caring for our land and water is important to us.

“Our dairy industry, to be successful [long term] depends on us finding the balance between sustainable dairying and healthy, resilient ecosystems.”

Fonterra and DOC will spend $20 million and ten years showing the alignment of sustainable dairying in healthy, functioning ecosystems in five catchments.

In Waikato, Living Water works to restore

Land Environments of New Zealand threatened environments classification.

three of the threatened Waikato peat lakes – Ruatuna, Rotomanuka and Areare. The lakes are listed as ‘acutely threatened’ under the

Students of Pirongia School who took part in the Living Water programme.

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DAIRY NEWS AUGUST 30, 2016

14 // NEWS

Finding her feet beyond the farm ATTENDING COURSES run by

Adrienne Wilcock on her farm in Walton, near Matamata.

Agri-Women’s Development Trust (AWDT) has empowered a Waikato woman to face all sorts of farming challenges, the organisation says.

In February 2011 Adrienne Wilcock and her hus-

band’s farm had 111 heifers in calf. That was until the neospora ‘abortion storm’ a short time later, resulting in just 59 of the latest line of genetics continuing on in the herd.

The following year the Wilcocks lost their farm cottage to a fire.

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In 2014, some reprieve came with the record milksolids payout. But the good payout times quickly vanished. The tick-parasite theileria struck, and on the heels of that came an outbreak of facial eczema.

“The word resilience is bandied about a lot, but that’s simply a trait we as farmers must have, even though we’re tiring of it somewhat,” Wilcock says.

“After all, we’re involved in a hugely complex business that’s evolving all the time as technology and science progress, along with coping with volatility.

“Yes, we’ve got new issues onfarm with compliance and we are striving to maximise efficiencies and minimise waste. But as an industry it’s important to remember we have mitigated some of the challenges of 30-odd years ago such as bloat and milk fever. We know much more now.”

Wilcock is adept at observing detail on her own farm and seeing the bigger picture, AWDT says.

The First Steps courses the organisation runs has been the key to this.

Says Wilcock, “I went on a First Steps course in 2012 and I distinctly remember it sparking a change in my thinking.

There was a realisation of what else could be possible.”

First Steps, run specifically for women in agriculture, complements the trust’s Escalator programme, which Wilcock has also completed. She says the courses have led to her now having influential contacts in most dairying regions in New Zealand.

“I met LIC’s chief financial officer, Linda Cooper, on the Escalator course, and many other women who are not necessarily farmers but are key players in our industry.”

The courses have helped her become more self-aware.

“I need a purpose, I like to achieve things. I‘m a glass-half-full person.

That’s what the course did for me – it helped me drill down, peel back the layers and discover what truly

drives me.

“So even though I’d been an active farmer with my husband for over 30 years, had raised a family and been extensively involved in the community, I didn’t truly realise what skills I had acquired.”

Technically, many farmers’ wives see themselves as ‘being out of the workforce’ but they don’t realise how pivotal they are and what they have to offer, Wilcock says.

The First Steps courses help identify skills and opportunities: “You gain confidence from realising you have many transferable skills, and from there you can take your next step, whatever that might be.

“The Escalator programme builds on First Steps and covers leadership and governance.”

Wilcock is now the DairyNZ-appointed representative on the board of the Agrecovery Foundation, a rural recycling scheme.

“One of our goals is to lift the collection (recycling) rate from 30% of farm chemical plastic containers sold to 60%. The recycled plastic is made into other products, eg a cable cover that protects underground cables from spades cutting through them.”

Her governance role led to another board role: she is now on an Environment Canterbury project that investigates ‘ethical solutions’ for farm waste that is otherwise burned, buried, or bulk stored.

“As a dairy farmer I bring grassroots knowledge to the table. Like most famers I want to be a good steward of the land and we require practical, simple, cost-effective solutions to support us to do the right thing.

“It’s amazing what’s still out there, stuff like 245T and DDT; most of those chemicals are stored in the back of sheds.

At least it’s not being dumped, but it’s time something more was done about it.

“I never thought my agriculture journey would involve this sort of work.” http://awdt.org.nz/

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DAIRY NEWS AUGUST 30, 2016

16 // NEWS

Tummy bug snoops raise risks for food firms PAM TIPA pamelat@ruralnews.co.nz

GENETIC TECHNOLOGIES are now used

during litigation in the case of food-borne illness in the US – notably a recent ice cream case – and they are changing the food industry rapidly, says Bill Marler, a US lawyer and expert in food-borne illness litigation.

The technologies include genetic fingerprinting and whole genome sequencing.

An example was a recall last year by an ice cream company. It was caught when the Food and Drug Administration (FDA) randomly tested food products from grocery stores, says Marler.

The FDA does that in part to ensure state labs are ready for any bioterrorism event.

The ice cream brand is very popular especially in the south. It tested positive for listeria. After genetic fingerprinting, a central agency found three people in Kansas who had tested positive for an identical strain; they had all been at the same hospital and all ate the same ice cream.

The FDA went into the plants, did swap testing, found more listeria samples, put those in the data base and ultimately they

MAKE THE ‘ENEMY’ YOUR FRIEND MARLERS’S SUGGESTIONS for companies dealing with foods include: Identify the hazards. This is not just a plan you park on a shelf. How do you operate every day and keep qualified, committed people working to make your product not only saleable, tasty and attractive but also safe.

What’s the culture? A good book – Food Safety = Behavior – is newly published by Frank Yiannas, vicepresident food safety, Wallmart.

Marler says he has sued Wallmart a few times.

“When you put somebody under oath for hours and hours they either like you or hate you and Frank and I have now become friends. He wrote a book on food safety culture in business – the idea of creating a cul-

linked it to 10 illnesses and four deaths over about five years, says Marler.

People can get sick and die but the cause is not recognised as a foodborne illness. But with genome sequencing, they can, in a sense, “reach out of the grave years later and be brought into that outbreak”, Marler says.

Marler is a US personal injury lawyer and national expert in food-borne illness litigation. He and his partners at Marler Clark are considered the US’s foremost law firm representing victims of foodborne illness. He spends a lot of time speaking on how to prevent food-

ture that allows for free discussion in your business about food safety so that people at the lowest and highest levels of your company have the ability to really communicate.

How can you make your food not only the best it can be but the safest it can be as well?

“You not only have to pay attention to what you’re doing but what your suppliers are doing. Do they have the same commitment to food safety? A lot of time with foodborne illness outbreaks it is not the manufacturer that created the problem; the problem has come from the supply chain.”

In the US many government agencies are thought of as regulators and enemies. “My pitch to companies is to make these agencies your friends.”

borne illnesses; he spoke at a recent Horticulture NZ conference.

He recognises New Zealand legislation is different. “I am acutely aware if I move here I wouldn’t have anything to do and I would have to get a different job.”

But he says changes in the US Food Safety Modernisation Act will markedly affect anyone wanting to ship food to the US. Food-borne illness is a significant problem, not just in the US but around the world. But even lawyers know that food production is a risky business, Marler says.

“I can’t tell you how

often I have had a food safety person say to me at a conference, ‘Can I talk to you a second… over here?

I don’t want anyone to see me talking to you. What can I do to get my CEO to pay attention to the fact that we need to invest in this? How do I explain how important it is not to cause an outbreak?’

“It always very difficult especially in food safety technology; a company will ask, ‘Why are you spending the money? Can you show me the bottomline reason why this is definitely going to make a difference?’ ” He refers to a lack of clear reward. “How do we

US lawyer and expert in food-borne illness litigation, Bill Marler.

say ‘My food is safer than your food?’ Nobody does that. Should we?”

He outlined an outbreak in a hamburger chain in the US in which four children died and about 60 kids developed acute kidney failure. One little girl severely affected was paid $16 million in 1995.

This outbreak started much of the food safety change that has occurred in the US over the last 20 years, he says.

He gave a run-down of how liability works in the US. If you are a manufacturer the questions are: Was the product unsafe and did it cause injury?

“If your answer is ‘yes’, then you have to pay [the lawyer’s] client a lot of money.”

Negligence is different and more severe. Criminal liability is uncommon in respect of a company, but

in the last five years US attorneys have been prosecuting much more for producing food that not only poisoned people but crossed state lines while it was contaminated.

With food-borne illness it is difficult to find out the cause. You have to have an ill person; they need to go to a health care provider who needs to collect a specimen.

“Without that there is no way to define whose product is part of the outbreak or not.”

Recalls are slow in the US: months may pass between the first ill person and the product recall.

Every food borne illness case Marler has been involved in since 1993 always had the opportunity to never happen, he says.

“If companies and their people had been paying just a little more atten-

tion they could have seen warning signs,” he says.

“The [crucial question] is ‘Can you create an environment in your company that if someone sees something not quite working right or some new technology that needs to be brought in – do they have the ability to talk to people who make those decisions in your company?”

The new US Food Safety Modernisation Act will have a slow roll-out but will have an enormous impact on food producers in the US and on food producers worldwide who want to ship to the US. “There will be a lot of requirements; you will need to pay a lot of attention. There will be a lot more testing of food products with whole genome testing.” @dairy_news facebook.com/dairynews

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DAIRY NEWS AUGUST 30, 2016

WORLD // 17

Eating more dairy helps weight loss RECENT RESEARCH

findings in Australia add to a growing body of evidence showing the beneficial role of dairy foods in managing weight, say Australian researchers.

A new study published by the CSIRO in Nutrients looks at the effects of consuming dairy in people on a calorie-restricted diet.

“This study further confirms other work that shows consuming two-four serving of dairy food (milk, cheese and yoghurt) or dairy supplements, as part of a calorie-restricted diet, can lead to greater weight and fat loss, compared to a control diet,” says Emma Glassenbury, Dairy Australia.

The study collated findings from 27 trials looking at the effect of dairy consumption on weight, body fat mass and lean muscle mass in adults. It found participants who consumed more dairy also retained 75% more lean

mass (or muscle) than those whose diets were lower in dairy, which has important implications for weight management.

“These positive findings, favouring an adequate intake of dairy foods, come at a time when the Australian Health Survey shows nine out of ten Australians are not meeting recommendations for the milk, yoghurt, cheese and/or alternative food groups,” says Glassenbury.

The Australian Health Survey showed adults are consuming an average of 1.5 servings of dairy – well below what Australian dietary guidelines recommend for most age and gender groups.

Misconceptions that dairy foods such as milk, cheese and yoghurt lead to weight gain have contributed to their avoidance, despite the Australian dietary guidelines recommending adults aged 19-50 consume 2.5 servings of

Oz farmers secure quad safety rebates FARMERS IN Victoria can claim up to A$1200 in

rebates on quad safety devices.

The Victorian Farmers Federation has teamed up with WorkSafe Victoria on a A$6 million quad bike safety rebate scheme, which is expected to pay rebates to at least 5000 farmers over the next two years.

“Farmers should get in early and take this opportunity to protect their families, workers and themselves against the risks of using quads,” VFF vice-president Brett Hosking says.

“It’s an undeniable fact that quads are dangerous… and we should all do what we can to make them safer or replace them with another vehicle.”

The scheme will allow rebates on purchases from September 1; they may be claimed from October 1.

“While the VFF is administering this scheme it’s open to all farmers,” Hosking says.

Rebates of up to $600 can be claimed on two eligible safety devices – the Quadbar and the ATV Lifeguard; a $1200 rebate will apply to alternative vehicles. Hosking says the VFF and WorkSafe are defining an alternative vehicle as a farm side-by-side vehicle (SSV). These typically can carry two-six occupants, and have roll-over protection, seatbelts and a cargo box at the rear.

To be eligible for the rebate an alternative vehicle must be designed for use in farming, and at point of sale have rollover protection and a fitted seatbelt.

Sport vehicles and small commercial vehicles such as utes are excluded.

“There’s obviously a bit of cross-over here, but we’re not going to be handing out rebates on vehicles obviously designed for sport not farming,” Hosking says.

“And you can’t claim the rebate on buying used vehicles.”

dairy food each day.

“This study shows adequate consumption of dairy foods is good for your general health and bones, and there is an added bonus that adding an extra serving of dairy every day will not hinder weight loss and can con-

Australian researchers say dairy products, as part of a calorie-restricted diet, can lead to greater weight loss.

tribute to weight management,” says Glassenbury.

“Dairy foods are rich in several nutrients that contribute to a healthy body weight, such as calcium, which reduces absorption of fat,” said CSIRO’s Dr Welma Stonehouse, one of the study’s authors.

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DAIRY NEWS AUGUST 30, 2016

18 // OPINION RUMINATING

EDITORIAL

In the lap of the weather Gods

MILKING IT...

Far from true ONCE AGAIN, without proof Greenpeace is pointing the finger at the dairy industry.

It claims the Havelock North water supply crisis has been mostly likely caused by “ruminant farm animals - quite possibly cows”.

The reasons why Havelock North’s drinking water is contaminated are yet to be determined. There is no evidence that irrigation or intensive agriculture have contributed. The area surrounding the water supply is dominated by vineyards, orchards, cropping and low intensity livestock, a far cry from Greenpeace’s allegation of industrial dairying supported by large scale irrigation.

Sorry Greenpeace, you’ve got it wrong this time.

Cow-powered fridges?

FARMERS ARE doing weird things to save the environment from flatulent cows Many farmers are capturing the fart gas (methane) before it spirals off into the clouds. In Argentina, some farmers are strapping backpacks onto cows, using the outerwear as a holding receptacle for the gas. According to the nation’s ministry of agribusiness, the backpacks can capture some of the 300L of methane each cow emits per day, enough to power a refrigerator for a day.

Glow your horn POLICE IN central India are sticking glow-in-the-dark strips on the horns of stray cattle to alert motorists to their presence at night.

Following a spate of crashes, traffic police in one district of Madhya Pradesh state have stuck orange radium reflective bands on the horns of 300 cows and bulls.

Stray cattle are a major traffic menace in India; hundreds of bovines roam free on roads.

So successful is the scheme, officers now plan to buy permanent radium paint to cover cows’ horns, as the plastic bands only last a few weeks. In 2015 at least 550 people were killed in India in stray-animal crashes.

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Caller het-up about downer WHEN A Southland passer-by saw a cow suspended from a tractor he thought it odd enough to ring the police.

The animal couldn’t get food or water and the owner was nowhere to be seen, the caller said.

They referred it to animal control.

But there was no animal welfare issue; turns out it was a downer cow being saved from a miserable fate by the farmer.

WITH SPRING just about upon us we might have expected the weather to get warmer and generally better as we waved away the cold, wet days of July.

Then we had the freak snow storm in the Central Plateau and Hawkes Bay. A theory going around suggests the seasons are running late and that next month could bring an extension of winter. This unpredictable weather, plus the volatility persisting in our markets, make for serious challenges to even the best dairy farmers.

And we still don’t know whether to expect a hit from the subclinical facial eczema that affected many herds, especially in Taranaki and the lower North Island, in late autumn.

So it will now be clear to all but a few farmers that a ‘risk management plan’ must be a critical part of their overall farm strategy.

All farms are different, but the process of drafting a risk management plan is pretty much the same for all.

First comes good strong data about the farm – not just educated guesses; then monitoring stock and pastures; then taking a serious interest in national and international politics: what happens in other countries can impact behind the farm gate. Good data and market intelligence help assemble the information base for developing risk scenarios.

While we can’t predict the weather, farmers can create plans which take into account the weather variables and set timeframes and action points linked to specific deadlines.

Dairy farmers in New Zealand are lucky in the support they get from DairyNZ and others who offer good, timely advice and training to deal with a whole raft of contingencies. For example, the advice given by DairyNZ on pasture management during winter to maintain the best possible covers was invaluable.

September will no doubt bring new challenges to dairy farmers; overcoming them will be tougher for the many who are slogging through this year with fewer staff. Hence DairyNZ’s timely advice to take care of staff, especially in giving them time to recover from the stress of calving.

All farmers had a reason to smile last week, when Fonterra raised the forecast milk price for the season by 50c to $4.75/kgMS. It’s been a long and hard two years for most farmers but the tide is turning. The payout is moving in the right direction; let’s just hope the weather gods smile on farmers this spring and into summer.

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DAIRY NEWS AUGUST 30, 2016

OPINION // 19

Our food is safe to eat MARK ROSS

THE FOOD we eat and how it is produced is never far from the news. The use of crop protection products and the residues that remain can evoke emotive headlines and spark unnecessary concern among consumers.

So it is pleasing to have assurances that the controls on agricultural products are working and that our food is safe as highlighted in The Food Residues Surveillance Programme report recently

pliant. Risk assessments were completed for each of these. The residues found were at extremely low levels.

Residue levels set by NZ legislation include a wide safety margin, well above any cause for concern. So these foods are still safe to eat. Many foods contain no residues.

These results are unsurprising. Agcarm members work hard to satisfy the stringent requirements set by regulators.

They also work with food chain partners to achieve the lowest possible resi-

directions on how to mix, apply, store and dispose of a product. It tells you, for example, where the product can be used, what pest it controls, and how soon the food product can be eaten after an application. All this is linked to ensuring that residues in food remain at compliant

levels.

Training in how to use agrichemicals is also essential to ensuring residues are kept at extremely low levels, which are typically as low as one part per million.

As a New Zealander I am proud to be part of an agricultural industry that

dues in food.

Government and the researchers who monitor food residues do so using carefully considered processes. But much of the information on agricultural compounds and veterinary medicines reported to the public, by the media and other sources, is misrepresentative and based on poor science. Soundbites are used to peak public interest, but rarely communicate a precise reflection of actual amounts, effectiveness, or impacts of agrichemical products.

The products Agcarm members manufacture are safe and important to the sustainability of our natural environment.

Good agricultural practice for crop protection and animal health results in increased food production. This results in high quality, less expensive food such as fruit and vegetables. Producing more food per hectare is a better use of our natural resources and less disruptive to our environment.

Labelling of products and proper training is also imperative in ensuring residues remain as low as possible. Agcarm is committed to ensuring that labelling is clear and concise.

Labelling provides

Mark Ross, Agcarm.

Maize Growers

MPI manages our food safety system and does monitoring to demonstrate that the average New Zealand diet poses no safety concerns from chemical residues or contaminants.

released by the Ministry for Primary Industries.

MPI manages our food safety system and does monitoring to demonstrate that the average New Zealand diet poses no safety concerns from chemical residues or contaminants.

The NZ National Chemical Residues Programme Report released in May confirms that NZ follows good practice in using agricultural compounds and veterinary medicines. It also found no food safety issues.

MPI sets very conservative limits for residues in food. These are many times below levels that would be a risk to consumers. The residue monitoring includes meat, seafood, honey, milk and dairy products.

Fresh produce for export and domestic consumption and many other commonly eaten foods are also included.

In total 3013 samples were collected from around the country and tested for hundreds of agricultural compounds, veterinary medicines and environmental contaminants. Over 205,196 individual tests were done, with a compliance result of 99.98%.

Less than 0.02% of the results were non-com-

is world leading in the production of safe, healthy and sustainable food.

We must maintain our reputation and continue to follow good agricultural practice to meet the ever-increasing consumer demands for safe food.

• Mark Ross is the head of Agcarm.

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DAIRY NEWS AUGUST 30, 2016

20 // AGRIBUSINESS

Pharma foods promise more than nutrition Imagine treating a disease such as diabetes by eating special foods registered as medicines. It’s not science fiction.

In this new field of ‘pharma food’ research, big food companies are spending millions of dollars. Fonterra chief science and food technology officer Jeremy Hill reports.

THE DAYS when ‘food’ meant breakfast have long gone, at least in the science world. Now, it splits into, say, functional foods, nutraceuticals and more recently pharma foods.

These new ways of describing food are commonly misused and misunderstood. We need clear definitions to help navigate the current and future role of dairy in a healthy diet.

Functional foods are those shown to have a specific function extra to providing basic nutrition.

They might promote mobility by developing and maintaing bones, joints and muscles.

Fonterra’s Anlene range is a good example.

Nutraceuticals are best described as ingredients isolated or purified from food materials that can be added to foods to make them functional, or sold as

nutritional supplements.

The lactoferrin Fonterra isolates while making milk protein concentrates is a good example of a nutraceutical.

Lactoferrin has such biological properties as antimicrobial properties and is added to infant formula and also sold in supplements. Demand is growing and we have recently expanded our capacity to make lactoferrin in New Zealand.

Another example of a dairy nutraceutical arose with recent research

by Fonterra in the Transforming the Dairy Value Chain Primary Growth Partnership programme with the NZ government on complex milk lipids (CMLs) such as gangliosides.

CMLs are found in breast milk and cow’s milk. Breastfed babies have a higher level of

CMLs in their brains, which is associated with improved scores on a range of cognitive measures. Our research showed that CMLs extracted from cow’s milk can also have cognitive benefits. Using Fonterra’s expertise in milk chemistry, dairy processing and nutrition we developed CMLs as a cost-effective ingredient used to create functional foods such as our Anmum product range.

Pharma foods are touted as the new frontier, though the concept has been around for millennia. Hippocrates (c 4th century BCE) said: “Let food be thy medicine and medicine be thy food.” Pharma foods directly target a disease by prevention or treatment in a similar way to conventional pharmaceuticals.

What might pharma

Jeremy Hill, Fonterra.

Will our future breakfast be milk, and cereal or a handful of dairybased pharmaceuticals?

foods mean for the way we eat dairy in future? Will our breakfast be milk, yoghurt and cereal or a handful of dairy-based pharmaceuticals that cure whatever ails us?

Many countries struggle to cope with rising healthcare costs, particularly as the world population ages. Better nutrition as part of healthier lifestyles is needed.

We know that dairy consumption can save on national healthcare costs.

A US study concluded that three-four servings of dairy per day could over five years save at least US$200 billion. A similar study in Australia found that healthcare costs of AUD$2b annually could have been saved had Australians been eating recommended quantities

of milk and dairy products.

So no surprise that some companies are spending heavily on pharma food research.

And though there will be opportunities, in the short-medium term there will be big obstacles, eg showing that a pharma food has an effect, is safe, has limited side-effects and conforms to a tight regulatory regime.

For pharma foods to make way as dairy company investments will depend on the evolution of regulatory frameworks and advances in research, so that the costs and rules are less restrictive for bringing such products to market.

The market for such foods will take time and effort to develop, in an era influenced by the real food movement which prizes

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A substantial prize awaits for firms prepared to spend money on meeting the requirements of consumers and regulators; it will take quality science, robust supply chains, product traceability and transparency. That is why the opportunity for functional foods that build upon the natural goodness of milk remains so attractive: it is a way of offering more benefits to customers and consumers and creating more value for farmers.

Consumers want functional foods to help keep them healthy. But they also want foods that are more natural, free from additives and from trusted sources. Safe

products from trusted sources that match the values of consumers is among the strong trends in food today. Of course these foods must also taste great, be convenient to eat and fit consumers’ lifestyles.

Dairying can now produce natural and functional foods at the convergence of both trends. Dairy nutrition can also be provided in many tasty and convenient formats. We can ‘have our (natural functional cheese) cake and eat it too’.

I doubt the future will see us eating a handful of dairy-based pharmaceuticals, but I am confident milk and dairy products will remain in the centre of the breakfast bowl, the dinner plate and the beverage glass.

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DAIRY NEWS AUGUST 30, 2016

AGRIBUSINESS // 21

Mag highlights huge career offerings A NEW publication features people taking up the wide range of careers offering in the dairy industry.

For example, a woman who played rugby for the Netherlands now studies climate change in New Zealand. And an adopted Aussie who travelled the world learning physics, maths and computing and is now making money for our dairy industry.

People Power – From Gate to Plate highlights nine different people taking different routes to adding value to the industry and economy.

The magazine, published by the Transforming the Dairy Value Chain (TDVC) Primary Growth Partnership scheme, highlights the work of scientists, researchers and others in non-traditional roles at DairyNZ, Fonterra, LIC, Zespri and others.

Among them are Cecile de Klein, who captained the Netherlands women’s rugby team at the inaugural world cup in 1991 and is now an AgResearch climate scientist; and Graeme Gillies, a senior research scientist at Fonterra who after many roles

and countries got his current job studying food structure innovation in Palmerston North.

There are about 60 students and researchers along the dairy value chain whose masters, PhDs and post-doctoral research is supported by the TDVC scheme.

Manager Andrew Fletcher says the work shows them how their research can result in tangible commercial outcomes that benefit other people and the economy.

Many will have careers in dairy industry science and research.

“The TDVC has a high strike rate in terms of people coming out of PhD and post-doctorate studies and into Fonterra and other parts of the food industry, adding to their employability and to the national capital,” says Fletcher.

“We recognised going into this work that we might not have all the capability we might need to drive value.”

A key part of that capability campaign has been the collaboration between MPI, through its PGP scheme, and industry.

‘Awesome people’ put icing on award cake NORTHLAND DAIRY farmers Craig and Suzanne

Johnsen say they met some “awesome people” during the Ballance Farm Environment Awards.

The Johnsens milk 260 cows on 94ha (87ha effective) at Okaihau, and a 38ha run-off nearby.

They entered the awards for the first time last year because they wanted to showcase their attractive and productive family farm in Bay of Islands.

The property’s location on a busy corner of the Okaihau plateau gives it a high profile, but they do whatever they can to demonstrate they are responsible about sustainability.

“We do everything by the book and we take our environmental footprint very seriously.”

Craig says entering the 2016 Northland awards allowed them to highlight their work to the wider community. The judging process also allowed them to benchmark their operation against other dairy businesses and find out how they could make further improvements.

Sue says the experience was inspiring and they enjoyed mixing with the other entrants. “We met some awesome people.” The judges, impressed with their operation, awarded the Johnsens two category awards, including the LIC Dairy Farm Award which recognises the important role herd improvement plays.

“Without the TDVC we would not have been able to attack this at anywhere near the sort of scale needed,” says Fletcher.

“We have been able to bring in a whole lot of additional PhD students and post-docs to work on

these projects and build up broad teams and capability.

“They are part of a process of change towards a multi-disciplinary fusion in food science – scientists who can work well with engineers and others.”

The publication highlights work done on transforming the dairy value chain.

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DAIRY NEWS AUGUST 30, 2016

22 // MANAGEMENT

The price of pugging PETER BURKE peterb@ruralnews.co.nz

SOME DAIRY farmers

in Bay of Plenty may pay a price for deviating from their spring rotation plan.

The leader of DairyNZ’s consulting officer team in the region, Sharon Morrell, says July was a particularly awful month with a lot of rain. Some coastal areas had a lot of water lying in paddocks that wouldn’t drain easily and they could not be grazed.

Some farmers, faced with the prospect of muddy paddocks caused by the rain, decided to move stock on a faster rotation but this move is now proving to be a problem, Morrell says.

“The message from us was not to deviate from the initial areas allocated.

Farmers who stuck to their allocated areas as part of the spring rotation plan have ended up with an extra week’s feed compared with those who opened up their paddocks too soon.

“We have been advising people that through that very wet period it was more important to stay with the area allocation and deal with the pugging as a secondary issue.”

DairyNZ is now putting out information on how to deal with pugging damage.

Morrell says while pugging can have long lasting effects on a farm, overall when looked at in the totality of the whole farm system, the impact is generally quite small.

“This is because generally you are only [getting] damage in small areas

This picture, of a Taranaki farm, was tweeted by DairyNZ last week.

compared with the whole farm, but the impact on that area affected can be major. People can go around and address that with seed and perhaps

rolling or whatever…. As a result they can make gains on the damaged areas.

“In the context of the farm, while it looks really ugly it is not as detri-

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mental to your system as ending up with low pasture covers as a result of going too fast too early.”

Morrell says many farmers simply don’t like the look of pasture that has been pugged and that is understandable.

The wider Bay of Plenty region looked after

by Morrell and her staff includes some pumice country which is typically porous. But she says even pumice land can suffer damage because in some areas there is now a better layer of topsoil.

“So you can make a mess on pumice but not as quickly and not as long

lasting as, say, in the Te Puke area.”

Morrell’s key message to farmers in her region is ‘monitor pastures covers’ – especially those calving. People who have maintained reasonable pasture covers will be in a good position to meet their projected balance date, but for those who went too fast too early with their covers it may a little bit longer.

Overall, farmers in Bay of Plenty generally went into the winter with a lot supplement because of the wonderful summer and autumn, Morrell says.

Although winter was wet

Sharon Morrell, DairyNZ

it was mild and not until very late in the piece did the ongoing wet start to decrease pasture growth rates. This has now made it difficult for farmers to get good utilisation of pasture.

Meanwhile, heavy snow has fallen at Rangitikei where there are large dairy farms, some in the middle of calving. One of Morrell’s staff joined farmers to help with milking for a day. Staff on these farms had been working hard for days on end and the outside help gave them a break.

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“In the context of the farm, while it looks really ugly it is not as detrimental to your system as ending up with low pasture covers.”

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BEAUTIFUL FINE days have made calving easier for farmers in Taranaki, says the head of DairyNZ’s consulting officer team there, Katrina Knowles.

So far the situation looks good, with plenty of heifer calves being born.

Facial eczema hit herds in Taranaki hard in autumn, but Knowles says most farmers reacted quickly to the problem “They cut the affected cows out quickly and treated them well and they are probably coming through pretty much unscathed. Certainly there will be some lower condition cows as a result of that and when they go to the next phase – mating – some issues might arise,” she

says.

Pasture growth rates had been slow but in the past week it has picked up again. Covers have probably dropped a little compared with what they’d like them to be at this time of year, but recent warm rain has moved things along.

“The key message now is it’s not too early to draw up a mating plan and what to do. It’s important staff are looked after and have time out between calving and mating,” Knowles says.

Some farms are running on fewer staff as owners seek to cut costs. Staff haven’t been laid off, but rather have not been replaced if they have resigned and farm owners are now more active their farms.

DAIRY NEWS AUGUST 30, 2016

MANAGEMENT // 23

Avoid the lastminute rush NIGEL MALTHUS

DAIRY FARMERS

delaying necessary upgrades to their cooling systems could find themselves caught in a rush if they leave it too late, says Canterbury refrigeration engineer Peter Jones.

All new dairy conversions must immediately meet new MPI standards for cooling milk, and all existing farms must upgrade to the new standards by June 1, 2018.

Dairy News caught up with Jones on a 340ha Townshend Group dairy farm south of Ashburton,

heat to heat the shed’s water.

Jones says the new regulations are only attainable with such systems; older style direct cooling cannot cool raw milk quickly enough.

Although existing farms still have the best part of two years to meet the new regulations, Jones says they will need to move quickly.

“At the last moment it will be too late.”

Roza Services builds custom plants but also has stock units ready to install. Using only European machinery, Roza can supply new or reconditioned equipment “to suit every budget”.

Roza Services also supplies solar hot water systems, heat pumps, refrigeration and freezer plants for farm, commercial and residential use.

Roza Services’ Peter Jones with a heat exchanger on a large dairy farm just south of Ashburton.

“Farmers are slow at the moment because basically they don’t want to spend money because they don’t have it.” where contract milker Rhys Huddleston runs 1500 cows. The farm supplies Synlait with certified grass-fed milk.

Jones’ company, Roza Services, of Wigram, is installing a large snapcooling plant on the farm, using a 30,000L insulated water tank. With the water in the tank brought down to 5oC between milkings it will then act as a large heat sink to snapcool the raw milk, so it will already be at about 66.5oC as it enters the vats.

The refrigeration unit will also harvest the waste

The costs range from $10,000 or $15,000 up to $50,000, depending on capacity, and Jones acknowledges farmers are struggling with low milk prices.

“Farmers are slow at the moment because basically they don’t want to spend money because they don’t have it. So they have to do something about it. I’ve got one farmer who’s got five farms – 6000 cows. He’s going to need these systems but he cannot afford them at the moment.”

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DAIRY NEWS AUGUST 30, 2016

24 // ANIMAL HEALTH/FEED

Managing feed substitution rates IT TAKES a lot of focus

feeding forages like maize silage is that they can be used as a pasture management tool to help even out feed supply fluctuations.

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extremely wet pastures and are using maize silage to slow down pasture cover loss.

We have always known that if you feed supplements, you get pasture substitution. This means the cows eat the supplement but they substitute it for some of their pasture intake (i.e they eat less grass).

Concentrates such as grains and some pelletised feed have relatively low fibre levels and they have lower substitution levels than forages such as maize silage. That’s a good thing if you want to get more total energy into your cows, but feeding forages will do a better job at leaving pasture behind. In other words, as a forage maize silage is a great pasture management tool.

I know a lot of farmers who adjust maize silage feeding rates to ensure their pasture residuals are always at target levels. If there is too much pasture in the paddock after the cows go out, they feed a little less maize silage the next day.

If the paddock has been grazed out too much they feed a bit more. It is a simple and effective way to manage pastures.

A trial published in the Proceedings of the New Zealand Society of Animal Production* last year examined the effect of feeding maize silage 1 hour or 9 hours before a pasture meal. While this was an indoor study and the cows had limited access to cut ryegrass-clover pasture, the results were still fascinating.

Cows fed 3kgDM maize silage after morning milking and about nine hours before their feed of pasture (9BH) ate 0.8kgDM

more pasture than cows fed 3kgDM maize silage about one hour before the pasture meal (1BH). This equates to a substitution rate of 0.56 vs 0.31 kgDM pasture per kgDM maize silage for 1BH and 9BH respectively.

The results of this trial suggest if you want to decrease total intake and leave more pasture in the paddock, feed your cows maize silage just before they go onto the next pasture break. If you want your cows to eat more total drymatter and leave less pasture behind, separate the feeding times of maize silage and pasture as much as you can.

This all makes sense to me. I am much less likely to eat a salad when I have already eaten two pies.

So in summary, maize silage is great for managing pasture cover levels.

Consider whether you want to leave more or less pasture in the paddock and alter feeding rates and the time of feeding accordingly.

• Ian Williams is a Pioneer forage specialist. Contact iwilliams@genetic.co.nz. * O Al-marashdeh et al, 2015. The effects of feeding maize silage at different times prior to herbage meal on dry matter intake, milksolids production and nitrogen excretion in latelactation dairy cows. Proceedings of the New Zealand Society of Animal Production 75:140-144.

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DAIRY NEWS AUGUST 30, 2016

ANIMAL HEALTH // 25

M’s the word during calving from owner to employee, can boost their motivation during calving by understanding how to tackle ‘the M word’ on a daily basis.

DairyNZ people team developer Alexandra Fjelstrup says motivation is the desire to do things -- the difference between waking up before dawn feeling ready to tackle the day versus waking up “wishing I was somewhere else”.

“Motivation is a crucial element in getting through tough times successfully with energy to spare. Studies have shown you can influence your own level of motivation and that of others.”

Tackling calving with motivation starts with increasing the feeling of autonomy, capability and social relationships within the farm team.

Applying these elements will make for a more successful calving.

Everyone is motivated by different things, eg money, not being shouted at, or simply the routine of doing a job day in, day out.

Motivation can be split into two different types: external and internal.

External motivation is the prompting to do something because it leads to a certain outcome, eg money. Internal motivation is doing something because it is interesting or enjoyable.

“It requires a certain type of management to inspire internal motivation within the team for them to go through stressful times while finding their job interesting and enjoyable,” says Fjelstrup.

“Some farmers have discovered that the key to success during tough times is using internal motivation which never fades away, even when the ‘going gets tough’.”

A Canterbury farm owner recently reinforced this.

“When it’s cold and wet and your team has worked for many hours, you can’t rely on them to be motivated by [the memory of] the two days they

WAYS TO MOTIVATE YOUR TEAM INSPIRE INTERNAL motivation within the team by focusing on turning up the feeling of autonomy, capability and social relationships within each individual.

Autonomy: provide staff with some control over how to structure and plan their day, and give them certain responsibilities.

Capability: ensure staff have the skills to do the job. Provide opportunities to attend off-farm events such as MilkSmart, discussion groups or AgITO courses.

Social relationships: small things can make a huge impact on a team and the social dynamic during calving. Take coffee breaks together, remain calm and respectful when things get tough and have weekly meetings.

had off back in June or the pay they will get in five days. You will have to rely on their inner motivation and drive, which boils down to how you can inspire this as a manager.”

Fjelstrup says farm managers, 2IC’s, sharemilkers, contractors – anybody with people responsibility – can inspire internal motivation within their team by focusing on turning up the feeling of autonomy, capability and social relationships within each individual on the farm.

Autonomy, or self-sufficiency, is particularly critical in creating and maintaining motivation. It comes from people feeling they have a say in their day, or a choice. Choice provides a sense of self-determination.

Examples from farmers who are great at inspiring autonomy are: ■■ Providing the individual with some control over how to structure and plan their day ■■ Giving the individual certain responsibility and let them know why they are responsible for these areas ■■ Giving the individual the choice of ‘how’ they will do the job ■■ Making the team feel included in decision-making.

Ensuring capability within a farm team will help increase internal motivation. Capability is when someone

feels capable of doing the job they are given.

Farmers constantly looking to grow their team are taking the right steps towards increasing internal motivation. They will train the team day-to-day and give them opportunity to go to off-farm events such as MilkSmart, discussion groups or AgITO courses. Many are also aware of where individual team member’s development areas are and regularly review their performance.

Another way to inspire internal motivation is by creating social relationships. Studies have shown that one of the main drivers to people’s happiness is the social relations in their life; not becoming everybody’s best friend, but taking time for people.

Think: ‘do I take small coffee breaks together with the farm team?’ and ‘do I remain calm and respectful to people in my team when things get tough?’

Other questions include whether weekly meetings are held with the farm team and whether goals for the week are communicated. All these small things can make a huge impact on a team and the social dynamic during calving.

• This article first appeared in Inside Dairy August 2016 edition.

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EVERYONE IN the farm team,

DAIRY NEWS AUGUST 30, 2016

26 // MATING MANAGEMENT

BCS normally a good guide to fat reserves in animal ASSESSMENT OF

a cow’s body condition score (BCS) gives a visual estimate of her body fat reserves, according to DairyNZ. A cow’s BCS fairly accurately measures her energy reserves, and BCS targets at key stages of lactation have been identified to optimise dairy production systems.

These targets are based on research in NZ and overseas for 30 years.

BCS affects dry matter intake, milk production, reproduction and cow health and welfare. In addition, BCS in early lactation may affect the sex of future calves and the productive and reproductive capacity of heifers yet to be born.

Irrespective of the farming system or cow genetics, milk production is optimised when mature cows calve between BCS 5.0 and 6.0.

That said, the production benefits decline with increasing BCS and the risk of metabolic health disorders at calving is greater, such that increasing BCS beyond 5.0 in mature cows and 5.5 in first and second calvers cannot be justified.

Recommended calving BCS targets are a compromise between wanting cows with sufficient energy reserves for milk production, while not being so fat as to compromise cow health.

If the BCS of any animal falls below 3 (on a

BCS AT CALVING ❱❱ Mature cow: BCS of 5.0 ❱❱ Heifers and rising 3-year-old: BCS of 5.5 ❱❱ No more than 15% of herd below BCS 5.0 ❱❱ No more than 15% of cows above BCS 5.5.

scale of 1-10) at any time, urgent action must be taken to improve condition.

Body condition scoring is a simple process.

However, it is important to calibrate the eye by first condition scoring cows ‘hands on’ at the dairy. Then you are ready to BCS in the paddock.

Line up 15 cows with a range of BCS: Put your hands on the important body parts.

Feel the amount of fat cover over the various body points and the difference between the cows. Note that gut fill can give visual impression of condition over the ribs; so it is important to feel the amount of fat cover.

BCS AT MATING ❱❱ The average decrease in BCS for the herd after calving is no more than 1.0. ❱❱ No more than 15% of cows below BCS 4.0 and cows gaining BCS.

Important points to consider when determining BCS.

Average the different areas to come up with the BCS for that cow.

What to look when you condition score cows:

Backbone - Is it flat or is there a ridge? Can you see or easily feel notches?

Long ribs - Can you see or easily feel the ribs?

If visible how many can you see?

Short ribs - Can you see the short ribs? What do they feel like? Are the rib ends sharp or rounded?

Hip bones - Are the hip bones rounded or angular?

Rump - Is the area between the pins and hip bones, flat, sunken or

hollow?

Pin bones - Are they pointed, ‘tap’ like or rounded?

Tailhead - Is there a hollow between the tail head and pin bones? Is it a deep V or shallow U shape?

Thigh - Is the area indented, flat or rounded?

Is the muscle structure defined.

BCS in early lactation may affect the sex of future calves.

Left to right: Halogen’s Dam: Cookiecutter MOM Halo-ET , VG 88 Deceiver’s MGGD: Ms Durchan Lady Allana-ET, EX 95 Stantons Main Event

We can’t say we have the best bulls.

But that doesn’t stop others from saying it.

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In the 20 August RAS (Ranking of Active Sires) list, 14 of the top 15 bulls by Breeding Worth all came from LIC. More than that, of the top 30 bulls, 27 came from LIC. And that is across all breeds; Friesian, Jersey and Crossbred. So if you’re looking for the best bulls to improve your herd’s productivity, then you know where to look. Not that we can tell you. To find out more about Premier Sires® and our genetics options, talk to your LIC rep or visit lic.co.nz/premiersires.

DAIRY NEWS AUGUST 30, 2016

28 // MATING MANAGEMENT

BCS records system changing A CHANGE will be

made this month to the way body condition score (BCS) records are treated before they enter the animal evaluation (AE) system.

A new process will apply more stringent limits to BCS data that flows into the AE system and will also allow multiple BCS records for an

individual cow rather than just one record per season.

New Zealand Animal Evaluation Ltd (NZAEL) manager Jeremy Bryant says the changes will mean a bull’s breeding value will more closely reflect the BCS genetics he is passing on to his daughters.

The need for this change was uncovered during the AE Transition,

an industry-led project which transfers the operation of the AE system from LIC’s animal evaluation unit (AEU) to NZAEL, a DairyNZ subsidiary.

“This has created the chance to intensively review all aspects of data processing, looking for causes of discrepancies between NZAEL and AEU’s evaluation results,”

Current System THE CURRENT pre-processing of BCS data only allows one record into the system. If a cow has multiple BCS records collected over the season, these are not included in AE. Some of the BCS records collected onfarm are very low or high (2.0 and lower, or 7.5 and greater) which may indicate ill health, data entry errors or special management of an animal. The current system does not exclude these outlier scores and so they are allowed to flow into the model.

Dairy sires often have only small numbers of daughters scored for BCS and so one outlier (high or low BCS) can have a large impact on their overall evaluation.

says Bryant. “In this case NZAEL, with LIC, saw an opportunity to enhance BCS data processing.

“By implementing this as a part of the August AE run (released August 20), farmers can make immediate use of improved breeding values.”

The early phases of the transition involved rewriting data process-

New System THE NEW pre-processing method will use multiple records by producing an average of all the BCS data collected over the season.

In addition to this, the validation of BCS records has been increased, so that very low (2.0 or lower) and very high (7.5 or greater) records will not enter the AE model.

ing methods to produce results closely aligned to those now produced

by AEU. NZAEL’s animal evaluation system has been tested for many months, running in parallel with AEU so the results can be directly compared.

In a similar scenario, a revision of fertility data processing was implemented in February.

“The impact of this change will be small, with 95% of dairy sires moving up or down less than $4 for breeding worth (BW).”

BCS breeding values are calculated using the BCS records of two-year-old cows in progeny test herds.

Two-year-olds are often assigned more than one BCS record over the season, scored when they are inspected for ‘traits other than production’ (TOP) and again when their liveweight is measured.

Jeremy Bryant

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DAIRY NEWS AUGUST 30, 2016

MATING MANAGEMENT // 29

Accurate calving dates help feed planning GREG HAMILL

DURING CALVING

many farmers focus on matching cow dry matter (DM) requirements with grass growth rates to ensure their feed budgets sustain them through to September/ October when growth rates match feed intake.

Many offthe-shelf feed budget software programs deal with a standard 282-day

breeding scheme continues to deliver sires with shorter-thanaverage gestation lengths.

Currently the breeding value (BV) gestation lengths of LIC’s Premier Sires teams range from -2 to -5 days, with

This is important especially as we have more farmers having to transition cows back from winter crops.

In short, farmers will still on average be supplying the factory

before their planned start of calving. They will now be doing so with more accurate information.

• Greg Hamill is LIC Genetics business manager.

LIC says Minda enables farmers to ensure their feed budgets coincide with expected calving reports.

@dairy_news facebook.com/dairynews

Is she in heat?

Yes she is.

Greg Hamill

gestation time to base their cow daily feed requirements on.

But there is a better alternative: the LIC herd management system Minda. This enables farmers to ensure their feed budgets coincide with their expected calving reports because Minda enables these to take into account the parents’ gestation lengths.

Even when I was farming I was always supplying the factory before the official planned start of calving.

That is because 95% of calves born arrive plus or minus nine days off their expected due date.

For example, if you have synchronised 100 heifers and their due date is July 20, 95 of them will calve between July 11 and 29. Five are expected to calve outside this window; some may be earlier and some later.

The average gestation length for the national herd has moved from 282 days to 281. The effect on gestation length is being seen in the influence of LIC’s top bulls with shorter gestation lengths as their progeny flow into the gene pool of the national dairy herd.

This is expected to continue as LIC’s

individual sires ranging from +4 to -9 days.

Half a bull’s BV will be expressed in his offspring BV. This is good news for farmers. Every additional day a farmer gets in milk is more money in his pocket. The more days a cow is in milk, the more profitable she is.

In the past, Minda would give farmers expected calving reports with a date the cow had been mated, and the date she was expected to calve based on the then 282-day average gestation length.

But we know individual bulls and cows have their own gestation length. So a few years ago the sire gestation length was added into Minda so that a farmer’s expected calving report reflected the bull’s expected gestation length.

Last year the cow’s individual gestation breeding value was also added into the expected calving report.

Minda is now giving a more accurate indication of when you can expect to have your cows calving.

Farmers can know which cows are more likely to be calving before planned start of calving, which also enables them to do more accurate feed budgeting.

Flashmate Electronic Heat Detector ®

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• Detects multiple heats – will flash red again for the next detected heat cycle if AI has failed.

• Improved accuracy - smarter detection, looking for patterns (length, time, frequency) rather than what could be a single event.

• Low experience required - Needs significantly less understanding and skill in correctly identifying heats.

View farmers’ experiences using Flashmates at www.gallfm.video Available at your local Gallagher stockists.

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DAIRY NEWS AUGUST 30, 2016

30 // MATING MANAGEMENT

Fast in-calf achieves good calving GETTING COWS

in-calf quickly is the key to achieving a good calving pattern, says DairyNZ. Heat detection, pre-mating heats and bull management are

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key ingredients for a successful mating.

Getting these right will benefit the farm’s submission rate and sixweek in-calf rate.

The easiest way to spot cycling cows is to do premating heat detection.

Use tail paint to pick out cycling cows. Use one colour tail paint to start, then a second colour as cows cycle and lose their tail paint. Within two weeks about half the cycling cows will have been identified. At three weeks, cows with the original colour are the non-cyclers.

Calculate the herd’s pre-mating cycling rate using the InCalf book for the percentage of cows showing signs of heat before mating begins. If cycling is less than 75% by 10 days before the planned start of mating, heat detection has not been fully effective and/or there are too many noncyclers.

At that stage it is time to seek advice and consider which options are available to improve heat detection during AB (artificial breeding) and treat non-cycling cows.

The best heat detection starts with careful planning, good observation and the effective use of detection aids. Being able to interpret cow behaviour and other signs is critical, along with good record keeping and training for those doing heat detection.

Start by reviewing the farm’s heat detection skills: does everyone know what to look for when detecting cows on heat? Then, decide which combination of aids the

farm will use (tail paint, heat mount detectors, activity meters and heat synchronisation).

Tail paint is a cheap and effective way to detect cows on heat.

Apply tail paint to all cows just before the start of mating. Touch it up at least weekly and check for cows with rubbed or broken tail paint during milking.

Re-checking tail paint for rub marks immediately before each cow’s insemination will avoid inseminating cows not on heat.

To help identify cows not yet inseminated or those only showing weak signs of heat, reapply a different coloured tail paint to recently inseminated cows once other cows no longer try to mount them.

Heat mount detectors can be particularly effective on farms with fewer skilled staff checking cows on heat, and when used with paddock checks for heat.

There are two types of heat mount detectors: pressure-activated tubes or scratch-off patches.

Applied to the cow’s backbone, the detectors will become brightly coloured and easily recognised.

Again, heat mount detectors should be applied just before mating starts, then monitored for activation and removed at insemination.

Until the end of the AB period, the detector should be replaced after insemination, when the cow is no longer being mounted. Regularly replace any heat mount detectors if they are damaged or coming loose.

ORGANISE THE BULLS GOOD BULL management ensures they are well adjusted to their environment before mating.

Move bulls to the farm two-three months before they are required for work. Buy bulls from the same mob and split them into two teams to rotate them (half resting, half working) to reduce fighting.

DAIRY NEWS AUGUST 30, 2016

32 // MACHINERY & PRODUCTS

King hit from India MARK DANIEL markd@ruralnews.co.nz

NOT USUALLY linked

with light utility vehicles LUVs), Mahindra has until now heavied the tractor market, claiming the world’s largest output of machines.

But with LUVs now squeezing quads, the Indian company is partnering with the US manufacturer Intimidator to produce mPact brand LUVs. A range of six models offers two engine choices and three body configurations: the basic layout is three seats and a standard load platform, and the choice of a Kohler

2-cylinder, 750cc petrol or 3-cylinder 1000cc diesel engine.

Next step is the Long (L) version with an extended load bed, then the C version that offers increasingly popular two row seating, safely carrying six people.

All models have CVT transmission with a choice of hi-lo-N-rev and park, the latter removing the need for a manual handbrake, which is often inadvertently left set when driving off.

2WD or 4WD is selected by rocker switch on the basic dashboard, likewise the rear diff, which combine with an auto locking front system when the going

Indian company Mahindra is moving into light utility vehicles.

gets really tough.

Looking at the details reveals signs of its American roots, with all key components built really tough -- full size chassis and a heavy duty

independent A-arm suspension at each corner with a full 254mm of travel.

A key design feature of the suspension is the automobile grade size and

design of the components, evidenced by oversize bushes in all the pivot points which should give a much longer lifespan than ATV derived competitor machines.

Keeping contact with the ground is the job of 27 inch tyres mounted on HD aluminium wheels, which give a very comfortable ride and offer 305mm of ground clearance, while rack and pinion steering offers excellent positioning and directional stability; speed is scrubbed off the maximum 56km/h 4-wheel automotive grade disc brakes.

The load tray is rated to 544kg capacity and the towing capacity of the

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712kg kerb-weight 750S is a healthy 950kg.

Gary Sanders, general manager Mahindra NZ, comments, “while we are newcomers to this market we see great potential, especially based on market research which tells us customers want automotive grade construction to

help reduce running costs and to ensure durability”.

“Our partnership with Intimidator puts us in this position and gives us the confidence to offer a three-year warranty on this product.” www.mahindra.co.nz @dairy_news facebook.com/dairynews

Straighten up and try again MARK DANIEL markd@ruralnews.co.nz

IN THE yard or at the local recycling centre -- making a complete pig’s ear of backing a trailer and facing ridicule from onlookers.

Now Jaguar Land Rover is about to rescue those who don’t have the knack: next year it will release its Advanced Tow Assist, to enable inexperienced drivers to manoeuvre a trailer, and alert the driver if a jackknife is about to occur.

Calling on a vehicle’s existing surround camera, the system uses trajectory lines overlaid on the image from the rear-view camera to automatically steer the vehicle on a path selected by the driver.

Jaguar Land Rover NZ general manager Steve Kerchington comments, “generations of Kiwis have relied on Land Rover to pull trailers, caravans and boats and have mastered the art of towing; now Advanced Trailer assist will make reversing simpler, faster and easier”.

ATA will be a standard feature on the 2017 Range Rover. www.landrover.co.nz

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

DAIRY NEWS AUGUST 30, 2016

MACHINERY & PRODUCTS // 33

Ideal overlap in combi mower MARK DANIEL markd@ruralnews.co.nz

THE LATEST develop-

ment from Pöttinger, the Novacat A10 mower combination, can be used as a front/rear combination, has a headstock for 3.0 or 3.5m front mowers, and a side-shift range of 400mm on either side ensuring an ideal overlap.

It is available either as a plain disc mower with swath formers, or with ED tine-type conditioners or alternately with RCB roller-type conditioners.

The Novacat A10 has a rugged carrier frame with a quick hitch-compatible Cat. III or Cat. IV linkage.

Used in combination with a 3m front mower, working widths of 8.809.56m are possible,

allowing the central gap between the two mower units of 1.8-2.6m. Utilising a 3.5m front mower, working width increases to 9.26-10.02m, with a delivery space of 2.3-3.1 m.

A Y-drive central input gearbox has output shafts on opposing sides said to result in longer PTO shafts running at a reduced angle and offering the advantage of smoother running and

Joint remedy without pills HOW OFTEN do you see

a machine with a huge glob of grease right next to the nipple instead of where it’s needed -- a joint or pivot point?

Many blame the grease gun or a dodgy nipple when the real cause is more likely old grease that has dried out and hardened inside the joint, preventing new grease getting to its target.

So your Christmas wish-list needs a grease joint rejuvenator from Innovative Products, USA, to help deal to the problem and bring the grease pathway into regular use.

The gadget drives light oil into a joint or pivot to break up hard packed material and allow fresh grease to be pumped in.

In practice the body of the unit is filled

an increased service life.

Layout sees slip clutches located next to the gearbox, and a double universal-jointed shaft in the inside mower discand-drum assembly provides a stress-free link between the individual mower gearboxes and the cutter bar.

Nonstop lift protects the cutter bar in the event of striking an obstacle and sees the mower frames mounted on gimbals which are hydraulically preloaded by a triangular support arm. The triggering pressure can be easily adjusted and is displayed by a conveniently located pressure gauge. When triggered, the mower frame folds backwards on the triangular frame and is simultaneously raised at the front by the gimbals, resulting in a three-dimensional collision safety

Pottinger Novacat A10.

system.

For road transport, the mower is hydraulically folded vertically, locked at a transport height of 4.0m, transport width of 2.7 or 3.15m and a ground clearance of at least 28cm.

A mechanical transport interlock is released hydraulically and removes the need for a lanyard, ensuring maximum convenience; parking stands enable the machine to be stored in the raised position to save space.

The mower combi-

nation is equipped with the Select Control terminal as standard and combines with a double-acting remote valve to allow preselection of the mower units, working width adjustment, control over the folding side guards, the hydraulic transport interlock as well as setting weight alleviation and suspension effect.

An optional Power Control terminal has load sensing compatibility, ISOBUS control of all functions, direct control

with light oil, connection is made to the offending nipple, and a hammer is used to compress a plunger which forces the oil into the joint. Repetition eventually creates a pathway which brings the joint back into use.

Each kit contains a professional rejuvenator, a pocket version for small jobs, and a 5-inch flexible extension, all housed in a moulded carry case. www.ipatools.com

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via the terminal (eg front mower, weight alleviation, etc) and control of the working width based on the ISOBUS turning angle signal from the tractor.

Both control terminals have integrated maintenance management functions monitored by the operating time of the mower’s driveshaft. Lubrication intervals (grease points, cylinders, PTO shafts, etc) are 50 hours; the interval for oil changes (gearbox and cutter bar) is 250 hours.

DAIRY NEWS AUGUST 30, 2016

34 // MACHINERY & PRODUCTS

Disc feed mills help keep costs under control MARK DANIEL markd@ruralnews.co.nz

FARMERS COMMITTED to a high-input feed-

ing regimes could do worse than look at home milling.

The benefits are lower costs, particularly if using your own grains, you know the ingredients, and the feed is fresh.

Home milling was once limited to roller or hammer

up to deal with ‘pinched’ grains, so almost eliminating waste.

mills – slow, high maintenance, dusty and noisy.

Not any more. The latest disc-mills from Skiold, Denmark, have advantages that make life easier.

For example, you can adjust the mill manually or via a remote terminal, helping ensure the grain is ground to the ideal consistency for particular animal types or materials used.

And the mill can be closed

And noise is lower – from 85dBa to 80dBa (a reduction of 3dBa is per-

Disc mills make almost no dust, important given more rigorous health and safety rules and the resulting cleanliness around farm buildings.

Disc mills use less power – typically 5.0kWh/ tonne – than hammer setups (11.0 kWh/t).

ceived as being half the noise).

Disc mills make almost no dust, important given

more rigorous health and safety rules and the resulting cleanliness around farm buildings.

A typical set-up, in the form of the Skiold SK 2500 supplied by Central Silo Systems, Palmerston North, has a compact free-standing unit easily integrated into existing systems, and driven by a 7.5kW motor to deliver 2.5t/hour.

In operation, grain is fed into the centre of the unit

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where the inlet ring deals with the larger particles and directs the material into the grinding elements.

In this area the grains are passed between tungsten discs, whose separation distance determines the consistency of the finished material. This adjustment allows each raw material to be milled to optimum consistency, before blending, storage and feeding to livestock.

Running costs are said to be low compared to other layouts, with simplified modular construction, and the grinding elements are made from tungsten carbide materials.

Typically a machine will mill 5000-10,000t before needing a service, versus 30-400t with a typical hammer mill. Daily maintenance is all but eliminated: the disc mill needs only one shot of grease for every 500 hours use.

The manufacturer claims that a system for around 200 cows will pay for itself in about 12 months, not least by improving feed conversion rates by up to 15%, and cutting waste by dealing with small (‘pinched’) grains and tailor making rations for individual groups. www.centralsilosystems. co.nz

“Help keep our milk clean this season!

Beat the threat of thermodurics with Silclear Fittings and Tubing.

It’s guaranteed not to perish – you won’t be disappointed.”

Reasons to choose Silclear...

HYGIENIC Silclear does not crack, erode or perish. or become porous, and does not support bacterial growth. Silclear is a totally different material to conventional rubber. It is not degraded by light, air, dairy cleaning chemicals, or milk-stone remover.

Silclear meets all EC and international hygiene standards.

The smooth internal and external surfaces are easy to clean and sterilise, helping to reduce your Thermodurics.

QUALITY SILICONE FOR LONG LIFE Silclear blend and process specially formulated high grade medical silicones optimised for maximum strength, tear resistance and optical clarity. Different formulations are used for different Silclear products, which means that each product has the best possible material properties for the job.

Careful control of all manufacturing parameters, and good production practices ensure that all Silclear products are of the highest quality. The visual clarity enables monitoring of milk and vacuum lines for cleanliness and milking equipment maintenance.

Genuine product ex UK

Silclear tubing after 54 months use

FLEXIBLE AND STRONG Silclear is flexible, easy to install and does not become stiff or brittle, even below freezing to minus -70˚C! it is not ORDER deteriorated by UV light, ozone or temperatures up to NOW FOR NEW 170˚C. As Silclear tubing is lighter than conventional rubber SEASON tube, pull on the cluster is lessened, reducing slippage, and improveming teat contact. The proven durability means that Silclear will give you a host of benefits at a lower overall cost.

Rubber tubing after 12 months use

Call Free: 0800 92 92 98

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OFFER ENDS SEPTEMBER 30 TH DEFENDER HD8

OUTLANDER 570

$2000

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GENUINE PARTS AND ACCESSORIES*

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©2016 Bombardier Recreational Products Inc. (BRP). All rights reserved. ™, ® and the BRP logo are registered trademarks of BRP or its affiliates. Products are distributed in New Zealand by BRP NZ. Make sure that all laws and regulations, are respected. Ride responsibly. *Can-Am ready to ride offer valid untitl September 30th at participating dealerships only. Includes MY14, MY15 and MY16 models only. Outlander 650cc and above models eligible for $1500 rebate at time of purchase. Outlander 570 models eligible for $500 at time of purchase. Defender HD8 non power steer models receive $2000 RRP genuine parts and accessories at time of purchase. Defender HD8 DPS and HD10 DPS models receive $1000 RRP genuine parts and accessories at time of purchase. Defender Max Models not eligible for a rebate. ^3 year warranty covers MY13/14/15/16 Can-Am Outlander and Renegade, and MY16 Can-Am Defender models only. 2 year warranty covers MY13/14/15/16 Commander and Maverick models only.

Looking for technical tips & know-how?

We’re here to help.

If you need technical support and advice our highly qualified team, which includes two nutritionists, two vets, four agronomists and 160 technical field reps, are ready to put their experience and knowledge to use to help you.

It’s just one of the factors that help us offer an unbeatable combination of value and service.

And if you need the level of experience and service that 160 years of business have given us, chances are one of our representatives are just down the road.

We work with farmers and growers from all walks of life.

There’s only one name you need to remember.

PGG Wrightson.

Freephone 0800 10 22 76

www.pggwrightson.co.nz

Helping grow the country