Dairy News Sep 25 2012

Global dairy price rises tipped to continue. Page 3

outpouring reaching trillion power, capacity ANZ chief’s export prediction.

Page 9

Multipurpose bucket arrives.

Page 51

september 25, 2012 Issue 277 // www.dairynews.co.nz

One-year report card

Fonterra chief executive Theo Spierings toasts 12 months at the helm PAGE 4

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Dairy News september 25, 2012

news // 3

Dairy prices to keep climbing pam tipa

GLOBAL DAIRY prices are predicted to keep Milk bars, selling New Zealand milk powder, launched in China. PG.11

Heifers end up on the beach.

PG.14

Early tests will keep endometritis at bay.

PG.39

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climbing for the rest of the year.

Four consecutive rises in the Global Diary Trade (GDT) auctions have added about 20% to prices in the last two months. Last week’s auction saw GDT prices rise 2.4%. The average winning bid last week among 146 bidders was US$3249 (NZ$3922) per metric tonne. Skim milk powder was up 4.7% and whole milk powder 2%.

The good news is economists believe the rises are here to stay, at least until the end of this year.

However, a strong Kiwi dollar is unlikely to see the price rises translate into a bigger payout.

BNZ economist Doug Steel says prices will keep floating higher. “But probably not to the same extent as has been seen over the past couple of months – prices are up something like 26% from

their May lows,” he told Dairy News. “But with the supply and demand balance in the international dairy market, the prices will truck higher.”

ANZ National Bank rural economist Con Williams says people are talking about the US drought, but it is actually a slowdown in European production driven by feed prices which has been the biggest factor in price rises so far.

Williams says he would still be in the $5.50/ kgMS camp for the payout this year. The Fonterra forecast at present is $5.65-5.75 including a $5.25 milk price and 40-50c dividend.

Prior to the last two auctions Williams says his model showed dairy prices needed to reach 9% higher over those two auctions to reach his forecast payout, as long as the New Zealand dollar stayed around 80c.

“Now we have come up to that 9% level we need to maintain that strength to the end of the year but also we’ve had the New Zealand dollar above 80c

so we probably need a little more price strength yet to get to that $5.50.”

Steel says the lift in prices is just starting to support where the payout forecast is at the moment.

“If anything, given where the kiwi dollar is, international dairy prices probably need to lift a little bit more to achieve that forecast – but it’s our view those prices will lift.

But it also depends on where the kiwi dollar gets to and it certainly has been strong as of late. The US drought is getting priced into the dairy market and a reason why prices have lifted so sharply, he says. Figures last week showed US production had moved into the negative territory – down 0.2% from the same month last year.

“Another influence is the large increase in supply we had from the Southern Hemisphere last week may have started to wash through the system with very strong exports from New Zealand through May, June and July.”

CHILDREN ALL over the country are letting their creative juices flow as entries pile in for LIC’s annual art competition. With glitter, crayons, paint and even a dinner plate, children have created “absolute masterpieces” of their calves, competing for prizes from the cooperative.

Communications manager Clare Bayly says entries arrive daily and they’re keen to see more before the October 1 closing date.

“Every year the children’s creativity never ceases to amaze us. We ask them to create art of their calf and never know what we’ll get in return.

“One child from Opotiki has taken the time to decorate a dinner plate with a picture of her calf, some foliage from the garden and some lacquer to seal it up. It shows you how much they love their calves.

“They relish the opportunity to create them in an art form after putting so much time and effort into choosing and training them for their school’s Calf Club.”

Stallion Plastics is sponsoring the competition with a MG50S mobile calf feeder worth $3900 for the dairy farming family of the overall winner. Judging will be in three age categories (5-7, 8-10 and 11-13 years) by LIC staff.

The three winners will receive a calf care hamper and be posted online at www.calfclub.co.nz for the public to determine the overall winner of the Stallion mobile feeder.

Three iPads and a modem router will also be awarded to the most innovative school entry.

Entry forms and more information is available at www. calfclub.co.nz.

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Dairy News september 25, 2012

4 // news

Spierings gets the tick from farmers FONTERRA CHIEF executive Theo Spierings is expected to announce this week that the co-op’s annual revenues have for the first time exceeded $20 billion. The achievement caps Spierings first year at the helm of the co-op.

While some farmers believe the jury is still out on his performance, the Dutchman has received a tick from the Fonterra Shareholders Council and South Canterbury farmer, Eddie Glass, a fierce critic of TAF (trading among farmers).

Glass, who spearheaded a campaign to reject TAF, believes Spierings has performed “very well”. “He will go on to do big things for the co-op,” he told Dairy News.

Spierings took over as chief executive in the midst of divisive debate by shareholders of the proposed share trading scheme. In his first few months

at the co-op Spierings expressed surprise at shareholders debating TAF in public rather than “keeping it within the family”.

Glass believes Spierings played a key role in the second TAF vote, where 34% of votes were cast again the scheme. “I believe his job had become untenable; he was spending so much time in the politics of TAF.” Glass says Spierings has won his support and he looks forward to “great things from him”.

Fonterra Shareholders Council chairman Ian Brown says while the council has not rated Spierings’ performance, he believes he is on the right track. Spierings earlier this year outlined his strategy refresh for the co-op, focussing on three Vs: volume, value and velocity.

Brown says the strategy refresh will take time but early indications are

pointing to a positive outcome. “There is a real positive feeling in the air when you enter the Fonterra offices,” he says.

But not everyone is quick to give Spierings the tick.

Farmers probably haven’t seen enough of Spierings, or the results of his work, to make a call on his performance to date, says Feds Dairy chair Willy Leferink. “He’s been busy restructuring the business and as yet we don’t know if that’s for better or worse.”

However, there are high hopes it will deliver despite commodity market fluctuations, economic difficulties – notably in the US and Europe – and the high New Zealand dollar. “He’s trying to row a boat in a very difficult economic environment,” acknowledges Leferink.

The fact Fonterra will this week probably announce an annual turnover not less than $20 will be quite an

Theo Spierings

achievement, but the big question will be what profit will drop out of that?

“I’ve no idea. Commodities are cheaper now which usually means profit increases and the half-year forecast looked good. I’ve not got super-big expectations but certainly some hope of a good result.”

Leferink says over the year he’s had two face-to-face meetings with the new chief executive, both of them about the Trading Among Farmers issue, which were “quite contentious”. Other than that he hasn’t had a great deal to do with him. Fonterra’s annual results will be announced on Wednesday.

Canterbury compliance rates increase andrew swallow

THE ANNUAL report on dairy compliance rates in Canterbury shows a marked improvement, not that you’d know it from a glance at the local papers.

“One in 10 dairy farms in South Canterbury is significantly non-compliant with its dairy shed effluent consent conditions, according to a new report from Environment Canterbury,” trumpeted a Timaru Herald page-3 lead story in its

opening paragraph.

The article, under the headline “10pc of farms in breach, says ECan”, was syndicated on Fairfax’s website Stuff, where it appeared on The Press pages. Only in the fourth paragraph did it point out that the 77% full-compliance rate was up from 64.9% a year previously.

That was despite the opening statement in Environment Canterbury’s media release on compliance in the Orari-Opihi-Pareora zone, which the Timaru Herald was referring to, leading

with the 77% figure, the third best of the ten zones monitored (see table).

ECan also noted, in its third paragraph, that the zone’s compliance rate beat the regional average of 70%. The 9.9% significant non-compliance rate – a touch over the regional rate of 8.6% -was in the fourth paragraph.

The Ashburton Guardian take on the report was also negative, though with more justification. “Mid Canterbury dairy farmers have fallen in their level of compliance with dairy shed effluent

consent conditions,” it said, under the headline ‘Dairy farms ranked on compliance’.

The reporting left local dairy representatives disappointed, but not surprised. “It would have been fairer to focus on the positive which is the fact compliance rates have improved significantly,” Ryan O’Sullivan, Feds Dairy South Canterbury chairman, told Dairy News. “But as farmers we can’t tell the editor of a paper how to butter his bread.”

Timaru Herald editor Peter O’Neill made no apology for opening with the significant non-compliance figures. “[It was] because of the continued level of that serious non-compliance. In fact that’s gone up,” he told Dairy News.

“From where I sit it should be 100% compliance and I get pretty hot about it. It’s the ongoing nature of it… If we had the building industry not complying with 10% of its consents there would be front page stories left, right and centre,” he says.

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Dairy News september 25, 2012

news // 5

Farmers swing on gates over One Plan ruling peter burke

FARMERS IN the Horizons region say they could deny access to their properties to members of Fish and Game as a result of its stance on the infamous One Plan and the recently announced decisions on it from the Environment Court.

Farmers are annoyed that DOC and Fish and Game appealed the One Plan, leading to the court supporting Fish and Game’s position. Federated Farmers says most farmers and commercial growers in the region are affected in some way by the plan.

It’s nearly three weeks

since the Court released its decision, but confusion remains over the impact of the One Plan. Even the chairman of Horizons Regional Council admits they are not certain what the Environment Court wants done with the plan and are seeking urgent clarification of some issues.

As Dairy News went to press, primary sector groups were meeting to decide whether or not to take appeals to the High Court. Appeals were required to have been lodged by September 24 and were admissible only on points of law, not previous evidence.

Federated Farmers early last week briefed

members on the Environment Court’s decisions and sought feedback on what action to take. About 100 farmers and industry group representatives gathered to hear Feds policy advisor Dr Tessa Mills’ opinions on the implications of the decision. Also present were two Horizons staff and the chairman, Bruce Gordon, who answered questions.

The tone of the meeting was subdued and most farmers were clearly frustrated at the court’s decision. They are trying to work out its effect on their farming operations. Most questions and comments were on what the farmers saw as the court’s failure to take account of

Farmers at the meeting called

by Federated Farmers to discuss the One Plan ruling.

economic issues. DOC and Fish and Game were painted as the main villains, leading to suggestions that given Fish and Game’s anti-farming stance its members should be refused access to farmers’ land.

Meanwhile primary industries minister David Carter awaits information, urgently sought from his department, about the implications of the One

Plan. Given that One Plan is seen as precedent setting for other plans in the pipeline, the Government is pondering whether its economic growth targets and other pet projects could be derailed by the plan and others following.

Commercial growers in the region have also met to discuss the implications of the plan on their operations.

The president of

Manawatu/Rangitikei Federated Farmers, Andrew Hoggard (a dairy farmer) says the meeting went well. Concerns that it might turn into a screaming match against Horizons proved unwarranted.

“Members views were kind-of split. Some suggested talking with Horizons to try to come to a reasonable outcome over the rules. Others were saying the lack of empha-

sis on economic issues was grounds for appeal. The meeting was respectful to the Horizons people and it was good they came along to answer questions.”

Hoggard says the meeting gave farmers a chance to understand the implications of One Plan. Any decision on whether or not to lodge an appeal will be in the hands of the local executive with outside legal advice.

[and about] water quality issues and the need for the dairy farming community and the general agricultural community to accept some responsibility.”

But Holdaway says the pendulum has here gone too far on the environmental side without taking account of economic consequences.

‘People will be out of business’

Margaret Millard

“There needs to be a balance,” Millard says. “In the act it refers to social, economic and cultural aspects and they have to address the economic balance. If they want to downsize agriculture they need to see where else they can make those eco-

Julian Dalefield

nomic gains.”

Julian Dalefield, a third-generation Manawatu dairy farmer, sees a lot of fear and frustration over the new One Plan.

“We don’t know any real facts at this stage.

People putting the plan

need to work together HORIZONS REGIONAL Council chairman Bruce Gordon, who attended the meeting, says farmers are disappointed and scared about the Environment Court decision, but that education over time will “alleviate that”. He denies the revised One Plan will harm the region’s economy.

“The Environment Court judge took into account the economic effects on the region as part of the analysis of the information he had before him. I hope the economy of the region would stay neutral if not improve under the new plan.”

Gordon says Horizons has com-

plete control over the implementation of the One Plan and says it will work with farmers within the constraints given them.

He admits the council is unclear on what some of the Environment Court decisions mean and is seeking urgent clarification.

He concedes farmers are most affected but says the plan is intended to level the “playing field”.

“All our dairy farmers and intensified farmers must have consents to do what they do, so why shouldn’t it also apply to others having land use changes?”

together don’t want to talk to anyone and the farmers are frustrated because they have no way of putting their point of view.”

But while he’s concerned about the outcome of the One Plan, Dalefield insists something needs to done to improve water quality.

Murray Holdaway, a dairy farmer in Tararua

district, would have liked MPI to have had an advocacy role in One Plan to balance DOC’s involvement. He is disappointed the process has been turned on its head by the Environment Court.

“But hopefully people won’t lose sight of this being about making our environment and businesses more sustainable

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OPIKI DAIRY farmer Braeden Whitelock told the Feds’ meeting he’s concerned about the effects of One Plan.

It will result in a loss of jobs and put people out of business, he says. “This is a huge step backwards and the country can’t afford it.

The plan is precedent-setting and is going to ripple through the whole country,” having economic impact across the region.

Dairy farmer Margaret Millard also thinks the effects of the One Plan will be dramatic. Implementing it as Fish and Game wants will reduce farming and the economic benefits flowing from it.

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Dairy News september 25, 2012

6 // news

LIC shuns media over Matrix ANDREW SWALLOW

DESPITE ONGOING

calls for compensation, and unanswered detail on the Matrix mutation, LIC has brought down the shutters on media over the matter.

“We have already provided all the facts in relation to this case, and, after lengthy deliberation, taken action,” a spokeswoman told Dairy News last week.

That “action” amounts

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against farmer.” to a refund of semen and “That is not what Fedinsemination costs, and free DNA testing of calves erated Farmers wants because LIC needs to learn resulting from the 12,345 lessons from Matrix,” says Matrix inseminations.

“We now regard this as Feds Dairy chair, Willy Leferink. “Any business a matter for direct comthat identifies issues that munication with our may affect shareholders and cus- “We now regard customers tomers this as a matter and shareholders rather than for direct alike, has via media.” communication a duty to That communiwas despite with our a strongly shareholders.” cate early and comworded municate well. communiqué from “I guess the ball is now Federated Farmers in LIC’s court. The federfollowing a meeting of ation urges them to think its dairy leadership with carefully where they are LIC last week. It warned right now and where this the issue could “polarise” LIC’s farmer shareholders could end up taking them.

LIC also have to realise the and risks “civil war with customer is always right.” shareholders taking on Leferink told Dairy LIC and pitting farmer

News that 30-40 farmers who had heifers affected by the mutation have formed a group and are considering further action in their call for compensation. The federation would help members in that “if they require assistance” but the federation itself will not challenge LIC based on the current level of complaint.

That could change if the number of members contacting the federation over the matter escalates. “Maybe [we would] if there were hundreds,” Leferink told Dairy News.

About 900 farmers used Matrix in spring 2010 when the bull was introduced as “a late addition” to the DNA-Proven team.

LIC has previously said about 1500 heifer calves

were affected by the mutation carried by Matrix.

The heifers have excessive hair, are intolerant of heat and, judging by the progeny of Matrix’s father Halcyon, which alerted LIC to the mutation, will not produce milk.

Feds’ Dairy vice chair Kevin Robinson echoes Leferink’s concerns about LIC’s approach to the issue. “They’ve pretty much told us there’s no more compensation.

We’ve given them a lot of reasons why they should think hard about that. If they stand by their current position I would imagine these farmers will do something,” he told Dairy News. “We’ve relayed that to [LIC]. We’ve acted on behalf of our members to try to get a result.”

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A BACKLASH against the Matrix technology would be unfortunate, Willy Leferink says.

It was only because Matrix was fast-tracked to market through genomic selection – hence his listing as a DNAProven sire – that his semen was available before the

problem with his sisters became apparent through traditional progeny testing methods.

“In due course I am sure it will play a huge role. We can make enormous [genetic] strides if we can take four years out of the system.”

On his own farms he is using

genomically selected bulls, and while they’re not from LIC, that has nothing to do with the Matrix situation or his faith in LIC’s DNA-Proven selections.

“It’s because I don’t consider their udders to be good enough.

We push our cows hard and they need to have a very good udder.”

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in brief Moore chairs Trust FORMER SHAREMILKER of the Year Teresa Moore is the new chairwoman of the New Zealand Dairy Industry Awards Trust.

Moore won the sharemilker competition in 2009 with husband Chris and they now farm a 71ha 200-cow property at Te Puke.

“I’m looking forward to working with some great people on the trust and in overseeing our role to ensure the trust’s goals are implemented and that there is good communication between the trust and the NZDIA executive running the awards programme.”

The trust governs the New Zealand Dairy Industry Awards and represents the awards owners and dairy industry. The executive is chaired

by Southland dairy farmer Matthew Richards and convened by Chris Keeping.

The trust comprises Moore (a Federated Farmers’ representative), Willy Leferink, Andrew Hoggard, Fonterra director Jim van der Poel, and DairyNZ directors Alister Body and Ben Allomes – the latter also a New Zealand Sharemilker of the Year winner.

Moore has been on the trust since 2009, after winning the sharemilker competition. She also convened the 2011 Central Plateau Dairy Industry Awards regional competition.

She takes over from 2012 Dairy Woman of the Year, Barbara Kuriger, who started a year-long $25,000 Global Women in Leadership scholarship earlier this month. Entries for the 2013 awards open in November.

Co-op agm delayed FONTERRA’S ANNUAL meeting will be mid December, later than the usual SeptemberNovember timing.

Though some have speculated the delay is associated with constitutional changes and safeguards to do with TAF (trading among farmers), a spokesman told Dairy News the later date is because of logistics.

“The date will be confirmed when a venue has been [confirmed]. Venue availability and getting everyone’s schedules aligned are the main things influencing the scheduling.”

Dairy News understands Hamilton is the intended location. The last time the Waikato centre hosted the annual meeting was September 26, 2007. Meetings have since been held at Palmerston North (2008), Ashburton, Hawera and last year Whangerei.

Dairy News september 25, 2012

news // 7

Asia beckons as fresh milk market PAM TIPA

THE NEW Zealand dairy

industry would look at fresh-milk exports to Asia if there was a “buck to be made”, says Federated Farmers dairy chairman Willy Leferink.

And a Dairy Australia spokesman told Dairy News there is further opportunity in fresh milk and fresh dairy products

international industry analyst, Norman Repacholi, does not see Australia necessarily having a greater advantage to New Zealand in fresh products. Fonterra and other dairy companies already ship products around the world.

He says milk-price wars between Australian supermarkets are behind publicity last week about Dairy Connect NSW looking at shipping fresh milk

defined as products with a shelf life of not more than 60 days. That can be extended shelf-life milk or some UHT, yoghurts... it’s a fairly broad approach.

“With fresh milk specifically you can get some good premiums because it’s pitched at the high disposable-income consumers and they’re focused on

freshness or flavor.” Or it can be pitched to expatriates.

Repacholi points out China is a market on everyone’s radar, with a lot of investment from all sort of places around the world, not just Australia and New Zealand. But neither Australia nor New Zealand has any specific

advantage over the other in fresh milk. “A lot of it just comes down to the local partners being in the right place giving consumers the opportunity to buy the more expensive milk product and also convincing them.

“In a lot of places in South East Asia and North Asia too consumers

haven’t grown up drinking fresh milk. They have grown up with a combination of, say, powdered milk and condensed milk in Indonesia or UHT milk in other parts of Asia . Fresh milk is something new and they need to get used Willy Leferink to it.”

“I have heard there are jumbo jets of fresh milk going to China.” (those under 60 days).

But both say a major barrier is most Asians are not used to the taste of fresh milk.

“There’s always potential where there’s a buck to be made,” says Leferink. “I have heard there are jumbo jets of fresh milk going to China and they pay a premium for that.

But most Chinese are used to the taste of powdered milk.

“Fonterra tried to send fresh milk to Singapore, but it didn’t work because Singaporeans didn’t like the taste. If Fonterra did [fresh milk exports] they would probably pick up the milk in Queensland.”

Leferink says Fonterra’s business outside New Zealand is growing hugely; he thinks figures released this week will back that up.

But a Dairy Australia

to Shanghai, Beijing and Hong Kong. “It is part of the fight back in the supermarket wars… as part of Dairy Connect’s message of building competition for the local milk: where there is competition there is also competition for the price back at the farmgate.”

Dairy Connect, a new industry body based in NSW, has made a trial oneday fresh milk shipment to Shanghai and plans more. And a report for the Western Australian Farmers dairy section recommends using the region’s geographical advantage to push fresh exports into Asia.

Repacholi says there’s potential in the fresh milk and dairy product category “pretty much wherever you look in Asia”. “’Fresh is broadly

Not a brand new idea NORMAN REPACHOLI says the idea of exporting fresh milk is not brand new.

Warrnambool Cheese and Butter have trialed getting fresh milk into Asia recently and the WA industry had been doing it for some time. Western Australia ships a lot of bulk products that’s chilled to just above Norman Repacholi freezing and shipped to Singapore or Malaysia. Some is flown, but the volume is shipped.

But getting fresh milk into Asia was not a “game changer” straight away, he says. The cold chain is still developing and UHT can be shipped by boat, strapped onto the back of a motorbike and kept in the pantry.

“On average (in China) they are not buying a two or three litre bottle of milk like we would – they would be consuming it in smaller increments.”

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Dairy News september 25, 2012

news // 9

$1.3 trillion farm exports on the cards FONTERRA LEADS

the way in showing how New Zealand could potentially reach $1.3 trillion in agriculture exports by 2050, says ANZ’s chief executive officer Mike Smith, visiting from Australia.

Smith last week told the Trans Tasman Business Circle in Auckland that ANZ will next month report on research into how New Zealand can maximise agricultural export opportunities.

“New Zealand has demonstrated with its world-class dairy industry and the success of Fonterra that international competitiveness in agriculture is about more than just having access to good land and rainfall.”

He said efficient supply chains must exist side-byside with good research and development capability, innovative financing and productive farms with the requisite scale, organisation, funding and skills.

The report suggests world demand will by 2050 require at least 60% more agricultural output than was achieved in 2005-07. But economic and industry reform is needed. In agriculture, this includes:

Sourcing capital to fund growth including foreign capital.

■■ Attracting skilled labour by boosting the image of agriculture and enhancing education.

■■ Focusing research and development to drive long-term growth.

■■ Closing performance gaps between individual farms.

■■ Targeting key markets by better understanding consumers in Asia.

“Here, I believe New Zealand is much better placed than Australia. New Zealand’s outwardly focused political and business leadership understands these opportunities… and they’re charting a course to take advantage of them,” says Smith.

“For example, the Government’s ‘NZ Inc China Strategy’ is specifically focussed on developing the trade and economic links between New Zealand and China with an objective to double bilateral trade with China by 2015… with New Zealand’s primary industries leading the way.

“And though New Zealand does not yet have ■■

a fully formed national strategy for food and agriculture, recent developments have been promising, including the release of industry-spe-

cific strategies from key industry bodies… and sector-wide contributions from the Riddet Institute and KPMG.” He says the task of real-

ising the Asian Century is the job of many: politicians, business leaders, farmers, educators, news media and community leaders.

ANZ Group chief executive Mike Smith.

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LOGGED ON to Fonterra’s website in the last fortnight?

It’s had a big overhaul to emphasise the global nature of the co-op’s business these days.

“Its new look reflects the co-op as it is today and better engages with our global and local audiences,” a spokesman told Dairy News.

Gone from the home page are the grins of Richie McCaw and Theo Speirings. Instead is a slide show of Fonterra operations around the globe, from 5am on a Taranaki farm, to 11am at a New York café or 1pm in a supermarket in Sri Lanka. Captions explain each image.

A minor glitch means not all media releases are available online, but this will soon be fixed.

Need more feed? Contact your local seed retailer, go to www.pggwrightsonseeds.com or Freephone 0800 805 505.

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Dairy News september 25, 2012

10 // news

Funding push for rural roads West Coast’s large milk catchments rely on good rural roads to service dairy farms.

PETER BURKE

RURAL ROADS top

the agenda of a group of South Island local authorities rallying a “coalition of the willing” to try to stop Auckland gobbling too big a slice of Government funding.

Heading the coalition is Tasman District Council mayor Richard Kempthorne, who told Dairy News all the South Island councils have indicated support for the new lobby group.

Kempthorne says the problem with rural roads, of critical importance to

the dairy industry in the South Island, is that NZ Transport Agency’s operations and maintenance budget has pretty much been capped at existing levels. So inflation ‘creep’ will erode the effectiveness of councils’ budgets and the amounts they can allocate to rural roads.

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“Part of the issue is ‘roads of national significance’. These are mainly motorway type projects around the big cities, taking a big chunk of the NZTA budget. We’re going to stress to the Government the importance of rural roads, to get them to better understand the issue.”

Regions such as the West Coast have large milk catchment areas and rely heavily on good rural roads to service dairy farms.

Kempthorne points out South Island cities don’t have the traffic congestion problems of Auckland and he concedes this problem needs solving. But much of the New Zealand economic depends on rural areas.

“We’re looking at trying to maximise the money we get for roads while acknowledging the Government will want to keep focusing on the big cities and motorway projects.”

South Island coun-

cils could pool resources and consider collectively what to do, Kempthorne says. “At our next meeting in November we’ll look at what our key strategic message is and how we can have a discussion with the Government. Essentially it’ll be about maximising the amount of money available for rural roads.”

Also of concern to the councils are small community water supply schemes to service up to about 400 people. These are now required to meet health department drinking water standards.

“Upgrading these is a huge cost given the number of people affected,” Kempthorne says. “We want to make sure the Government realises the cost of meeting these standards. We would like to have a bit more time to meet the standards and want them to build the issue of affordability into the assessment about whether or not to upgrade these schemes.”

Questions over ORC water plan hearing

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Confidence in a drum

AN OTAGO regional councilor is concerned about a perception of political bias in the hearing process for its proposed plan change to its water quality plan 6A. Gerry Eckhoff, a farmer representive of Dunstan constituency, says the process of determining the plan by regional councilors was fine. But he’s deeply concerned about a panel set up to hear submissions and ultimately make a final recommendation. Hearings on the plan change will take place in Dunedin, Oamaru, Balclutha, Wanaka and Alexandra.

The water quality plan is one of a number the Otago Regional Council (ORC) has been progressively updating. The plan is understood to be technical in content with many changes having a high science component. A large concern of the plan is N leaching limits.

Eckhoff is concerned at the ORC appointing two of its own people (Crs Butcher and Shepherd) to sit in judgment on a plan they have personally approved and in which they have a vested interest. Also on the panel is a former mayor of Queenstown Lakes District Council, Clive Geddes.

Says Eckhoff, “What I believe is absolutely essential is that after the plan has been developed the next phase is undertaken by a panel completely independent of the council. This supposedly democratic process can only work if the public has confidence in the system. One reason I think local government is held in scant regard is because the public don’t like this process of having councilors sitting in judgment on their own plans.”

Local government process is fundamentally flawed in allowing people to sit in judgment on their own cause, Eckhoff says. Though councilors on hearing panels have some training, it’s difficult for them not to want to defend their own plans.

Dairy News september 25, 2012

news // 11

Flying start in China for NZ milk mini-mart has made a flying start in China selling imported New Zealand made milk and dairy products.

The New Zealand Milk Bar opened its doors in Chengdu City this month and 300 customers passed through the store on the opening day. New Zealand milk powder, packed in 1kg bags and infant formula are the biggest sellers.

Shop owner Simon Page owns Biopure Health, an Auckland company exporting infant formula and dairy products to China. Its Infapure brand formula is produced at the New Image plant in Auckland.

Page says the groundbreaking store in Chengdu is unique to the growing multi-billion dollar dairy market in China as all its products are entirely New Zealand made, from milk to market.

New Zealand dairy products are well regarded in China and consumers there prefer overseas products over local brands. A can of Infapure baby formula retails at about $50 at the store,

about $10 cheaper than what supermarkets charge for New Zealand formula.

“There are no middlemen involved so we don’t whack huge premiums on our products,” he told Dairy News.

Page says the 1kg bag of milk powder is the best seller. Chinese consumers mix several tablespoons of milk powder with water to make liquid milk. “It tastes just like liquid milk and I’ve had some in China,” he says.

The launch in Chengdu means New Zealand Milk Bar will open more shops in the city. Another store is planned in the Sichuan province, Panzhihua this month.

Page says it already has more products in the pipeline and plans to have ten stores in China by the end of next year.

Page is also in talks with Wanda Group – a Chinese shopping mall operator, to open flag-

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The idea initially grew from seeing a strong demand for New Zealand products in China and Page and his partner attempted to import established products to the region. After further market research the pair decided to instead create their own brand of infant formula and market these through their own stores.

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12 // news

Grass well away after slow start pam tipa

Wet weather advice

PASTURE GROWTH on average

■■

nationwide was delayed this year but is now going well, says DairyNZ regional teams manager Craig McBeth.

Nationwide, production is ahead on both per-day and per-season-todate bases, but that is likely to even out through the year. Southland and Manawatu have had particularly good starts to spring, whereas areas such as Waikato and Northland have had significant wet weather with more challenges to pasture management.

“The sense is that the grass continues to grow pretty well,” says McBeth.

“As always you will have days and weeks when it is racing and days and weeks when it will slow down.”

In Waikato recent hard frosts slowed growth but warm rain followed reversed that and the region is growing well.

“As always it will depend on individual farmers and how they managed their first round since calving started when we had quite a bit of wet weather,” he

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Don’t over-buy feed as balance date draws near.

Maintain rotation length of at least 30 days.

With sodden pasture, on/off graze dry cows and graze paddocks from the back.

Ensure sufficient magnesium and calcium.

As the farm dries, apply a compound fertiliser with nitrogen and sulphur.

The plate meter could overestimate cover, so trust your eye as well.

Create a plan.

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Monitor results and adjust as necessary.

Find out more at a DairyNZ discussion group and at dairynz.co.nz/ wetweather Pasture growth around the country is picking up.

how they maintain quality with pasture covers increasing across farms.

“That’s a good problem to have.

They seem to be monitoring their pasture levels and making good decisions about ensuring they are grazing their paddocks to the right level of residual cover so they maintain quality and ongoing growth while conserving sur-

plus feed as it comes to hand.”

Manawatu has had a pretty good spring, he says. “They had wet weather but that was on top of good late winter and early spring so farmers are coping.”

McBeth says New Zealand had a great autumn last year but, if farmers cast their minds back, spring 2011 was

Balance date delayed BALANCE DATE – the time when

pasture growth meets cow demand – could be almost two weeks later than normal in Northland because of rain and cold, says DairyNZ regional leader Tafi Manjala.

It’s usually about September 20 in Northland but persistent rain for a month has hindered pasture growth and slowed production, caused pugging headaches and higher cases of mastitis and tender hooves.

But despite rain last week, more sunshine and strong winds were helping pastures dry out. ‘It’s improving; we’ve

had reasonable sunshine and quite a bit of wind so that has sucked up quite a bit of the moisture out of the ground.”

Milk production on-farm is not where farmers want it to be but is moving in the right direction.

“We’re 10% ahead of last year (because of the good start to the season) but on a daily basis we are probably just marginally ahead and sometimes negative so we are probably neutral on a daily basis. The longer it takes to reach balance date means people will have to be putting in some supplementary feed.

That’s a cost and we know what’s hap-

pening in payout, so it is a challenge.”

The price of palm kernel has come down recently, so farmers should shop around for all necessities but especially for feed.

Manjala says the number-one advice is for farmers to focus on what they actually can control.

“They can’t control the weather, they can’t control payout, but they can control how they manage the farm,” Manjala says. “That’s where their headspace really needs to be engaged.”

He finds the farmers who plan formally are in a better state.

Tafi Manjala

actually pretty tough. “But on average it has probably been delayed this year compared to last year.

“Farmers need to have a good look at their farm to see how it is performing in terms of cow condition, pasture cover, pasture growth rates and doing some planning to see if they are going to have enough feed to get them through to when balance date may be by their estimation.

“They need to make decisions now to cover any gaps with a bit of extra feed brought in or start putting some nitrogen on to get a pasture response. They need to make sure they don’t end up with hungry cows as they are coming into mating.”

McBeth says there’s a lot going on in the environment sphere which farmers are probably thinking about.

Although they should keep it in mind “first and foremost they need to be focusing on what they can control within their sphere of influence which is those things like assessing cow condition, pasture cover and growth rates and forecasting to know where they are heading,” he says.

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says. “If they damaged their pasture then regrowth is going to be significantly compromised. If they were able to protect their pasture, it should be growing more vigorously now.”

Southland is having a good season, he says. “They have been a bit dry, but they had good rain just recently so farmers there will be turning their minds to

Dairy News september 25, 2012

news // 13

Dairy can add zing to our spirits sudesh kissun

A REPORT on the potential of New Zealand’s alcoholic spirits industry suggests it could use the dairy industry as a stepping stone to global markets.

Pure ethanol and cream from dairy processors offer would-be entrepreneurs a chance to develop products with unique New Zealand flavours, says the report, by research firm Coriolis for the Ministry of Business, Innovation and Employment.

New Zealand’s spirits industry now exports $58.9 million of products.

“While New Zealander’s have been making spirits - legally or illegally - since the first settlers arrived, the success of 42 Below really gave the industry a boost,” says Coriolis director, Tim Morris.

“We’ve seen a huge number of new entrants into the industry in the past decade. It’s the innovation of these firms that’s driving growth.” Morris highlighted 26000 Vodka, Broken Shed Vodka, Lighthouse Gin, Zumwohl Schnappes, LemonZ Limoncello as recent award winners.

The report says the international success of the industry is due partly to dairying offering a ready supply of high-quality whey alcohol to which flavour can be added by spirits makers. “While they aren’t going to say it publicly for marketing reasons, most of the major

producers of flavoured spirits, RTDs and other alcohols in New Zealand are using dairy whey alcohol from Fonterra,” Morris says.

“In fact in 2010 an Australian vodka, Vodka0, won the World Spirits Competition and had to disclose its alcohol came from New Zealand.

“Fonterra is just too modest to announce publicly it was judged as the best alcohol in the world,” says Morris.

With New Zealand known for its safe, quality dairy products, any dairybased alcohol will be in a good position, he says.

“Our dairy industry creates a solid foundation, now this new industry is building a strong house on it,” he told Dairy News.

Morris gave the example of Canterbury Cream, a liqueur produced by Independent Liquor containing New Zealand cream. It competes with world-renowned Baileys Irish Cream. “Ireland exports almost a billion dollars worth of spirits, that set’s the benchmark for where we can go.

“We can take the ethanol and cream produced

by Fonterra in New Zealand and add value,” he says. “Achieving the ‘presence of place’ in the product is the key. When we buy Scottish whisky, we buy the dream.”

The report says future success will be driven by the use of flavours unique to New Zealand, such as manuka honey and kiwifruit.

“Anyone, anywhere can make vodka, but New Zealand is the only place you are getting manuka honey, kawakawa or ti-toki berries.”

“The major global

New Zealand has the potential to take on the world in dairy-based alcoholic spirits, says a report.

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Dairy News september 25, 2012

14 // news

Heifers head for beach BIRDWATCHERS AT

Waikanae Estuary, on the Kapiti Coast, would have been left rubbing their binoculars on a Sunday morning earlier this month when a herd of heifers appeared among the maram grass.

“Finding a herd of cows in the estuary reserve created a problem,” reported Mik Peryer, in the Waikanae Estuary Newsletter (see kapitibirdtours.co.nz) “Where had they come from? Whose were they?”

A farmer just up-river at Otaihanga was the first call. They weren’t his, but he turned up with some hay and fed them, and an ear tag was read enabling them to be traced.

Next call was to Kerry Walker, who farms about 10km away, 3km inland.

Were they his?

“No way!” was Walker’s first reaction, as they were meant to be in the

middle of the farm miles from the sea with two large sand-hills and a pine plantation between them and the coast. However, a check in the paddock revealed the heifers had indeed gone AWOL, presumably during a severe thunderstorm about 8.30pm the night before.

“I didn’t believe they could be my stock until I went and looked,” Walker told Dairy News. “They were half a kilometre from the house and four to five hundred metres from the road.” They’d gone through four fences until they reached a road, then walked until they hit the beach and “put their heads down for 8km until they came to a river too big to cross.”

With no yards in easy reach of their resting point, Walker mustered his son, a worker, and a couple of their mates and set about bringing the 42

Nowhere to go; heifers yearlings back the way stranded at Waikanae they’d come, with a quad Estuary. to the front and rear, and a ute running up the coast road blocking road access points. With the tide in and an onshore gale blowing, it was no easy task, especially when they came across seals hauled up on the sand.

“There were massive waves coming in, right up onto the dunes. They went over the bikes a few times. And some seals that had hauled up on the beach from the storm started trying to Kerry Walker could bite the wheels not believe his stock of the bikes had wandered to the beach. and chase the stock,” he says.

At another point they were berated by a bystander who “had a bee in her bonnet about bikes on the beach.”

But even-

tually, after about four and half hours, all made it home “okay, but absolutely knackered.”

Walker says the local animal control people were “fantastic, just great”

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Dairy News september 25, 2012

news // 17

Raw milk sales soar richard bentley

MPI is currently reviewing raw milk regulations but warns that anyone consuming unpasteurised milk risks bacterial infections from E. coli, Salmonella, Listeria or Campylobacter.

However, it seems many Takaka people see the risk as minimal. The

GOLDEN BAY might seem an unlikely place for a new venture in selling raw milk but the Houston family doesn’t seem to think so. Their dairy farming business Village Milk has spent at least $70,000 in facilities including a fancy coin-inthe-slot vending machine that automatically dispenses raw A2 milk to drive-up customers.

Buying milk is simply a matter of placing a bottle in the dispenser cabinet and putting $2/L in the slot.

The machine then meters out 1L or 2L, and once the door closed the cabinet is automatically sterilised with hot water.

Offering raw milk this way is novel for New Zealand but advocates hope it will soon be more common. Under current regulations farmers may sell up to 5L at the farm dairy to customers who intend it for their Takaka Hill resident David Hall fills a 1L own or family use. The milk reusable glass bottle at Village Milk. may not be re-sold.

Houston’s herd is, of course, TB free and they take great care with dairy hygiene; their risk management programme is registered with the NZ Food Safety authority.

Current sales by Village Milk exceed several hundred litres daily, and coowner Mark Houston expects this figure is likely to increase considerably during holidays.

“We have people coming to the Bay at weekends and taking milk home with them.

There are regulars from Nelson and I’ve heard of our milk being taken to Wellington and Christchurch,” he says.

Locals David and Denise Hall who live on the Takaka Hill are delighted with the facility and drop in once or twice a week.

“We prefer raw milk because it has the antibodies and enzymes our bodies need,” says Denise. “We know the environment the animals live in and so we know where this food comes from. The system is clean, easy to use and available all day, every day.”

Tax changes more succession friendly CHANGES TO tax laws on livestock valuation will no longer disadvantage new-generation farmers following a successful submission process by accounting firm BDO. Amendments to the proposed ‘herd scheme’ changes have been released, providing exemptions for farm succession that free up newgeneration farmers from restrictive tax barriers.

“The exemption for farm succession has come a long way from the original proposal,”’ says BDO tax specialist and farm accountant Charles Rau. “We commend the Government for listening but succession advisers will need to be careful how they structure their arrangements.”

The original changes, released in April this year, would have forced new-generation farmers to adopt their parent’s herd scheme selection by way of the ‘associated persons’ rule.

“We also surveyed the BDO national network of farm accountants and found that the original Government proposals did not cover

the most common forms of farm succession and so we made submissions to the Government for change.”

Rau says the amendments now cover the common 50/50 sharemilking arrangement where the child buys the herd outright and the parents own the land.

It also covers common drystock succession arrangements, such as a child buying the livestock and leasing the land.

“However, there are a number of restrictions, including the child not previously having an income interest in the livestock and the parents not continuing to have an interest in livestock.

“Consequently, farmers and their farm succession adviser will need to be careful to ensure their succession plans fit within the exemption provided for farm succession.”

Farmers are advised to contact their accountant or tax specialist to determine whether their succession arrangements qualify for the exemption from compulsory participation in the herd scheme.

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Dairy News september 25, 2012

world // 19

Dark clouds over Oz farmer meeting QUEENSLAND DAIRY farmers

gathering this week for their annual conference face uncertainty about their future in the industry.

The Queensland Dairyfarmers Organisation conference on September 25-26 at University of Queensland’s Gatton campus will be more important than ever, says president Brian Tessmann.

Extreme pressure exerted on the industry by the supermarket milk war has sunk the price of generic brand milk to an unsustainable level – A$1/L. “The industry is faced with rapid change as it tries to hold on against unsustainable and unreasonable prices for milk, figure out how much pressure is yet to come and how we can chart the best path forward,” he says.

The conference will see presentations by major dairy processors, updates on industry issues including the milk price war, and information on dairy research and on-farm initiatives.

It will take in the university’s research

facility, including farm walks and a tour of the dairy facility with key research and extension staff.

Speakers will include the Federal Minister for Agriculture, Fisheries and Forestry, Joe Ludwig; the Opposition agriculture and food security spokesman, John Cobb; and the Queensland Minister for Agriculture, Fisheries and Forestry, John McVeigh.

“With things changing so rapidly The Australian milk price war will dominate a farmer in the Australian conference in Queensland. domestic milk market, farmers need to know the farmers to attend this conference latest happenings and where to because ‘knowledge is power’ and at find out more if they need to,” says present the dairy farmers who supply Tessmann. “If you want a future in the Australian domestic market need the Queensland dairy industry, I urge all the power they can get.”

NZ dairy builder’s partner scores in Belarus PROMTECHNIKA, A Belarus partner of

Israeli dairy electronics maker Afimilk, has won a bid to set up 135 milking parlours by the end of the year. The two companies will also begin producing Afimilk systems to sell in the Belarus republic.

The contract from the Belarus government follows Afimilk, with New Zealand company Waikato Milking Systems, recently winning a multi-million dollar order for 13 rotary milking systems for the Chinese dairy giant Mengnui.

The Belarus government wants to increase local milk production

by 50% over the next few years.

The country is spending heavily on milk production and milking equipment, and has set up many dairy farms.

President Alexander Lukashenko says “at every farm we must introduce a new dairy complex by renovating an old one or building new one”.

Afimilk chief executive Yuval Rachmilevitz says in Belarus the company found an ideal combination: a strong and aggressive professional partner, Promtechnika, and a supportive government seeking to dramatically

increase milk production using the best technology for management and control.

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Dairy News september 25, 2012

20 // world

Fonterra cold makes Irish shiver tony hopkinson

“WHEN FONTERRA sneezes a lot of people [may not] catch a cold but it makes a lot of them shiver,” says David Minnock an Irish dairy farmer from Co Offaly, west of Dublin. He was referring to the fact that when Fonterra auction prices drop, his company is quick to alter its prices as well.

He supplies the Lakeland Dairy Group based in Killeshandra, Co Cavan. The company has 2000 suppliers supplying an average of 33,0000L/ supplier from an average herd of 55 cows. The furthest supplier is 160km from the main factory.

Dairy News first interviewed Minnock in 1998 when he worked on a Matamata dairy farm, then visited him in September 2000 when he worked on his family’s farm with parents Oliver and Geraldine. During a recent visit your reporter discovered he has bought 50ha from his family, added a new dairy, built a new home, married and started a family. And he is extending cow housing. “It does seem it’s all happening around here

but we’ve had major setbacks [and face] challenges.”

He was milking 75 cows, aiming long term to milk 100. But three seasons ago his herd was devastated by an outbreak of BVD and Leptospirosis. Worse was to follow. Twelve months ago his cows, and those of five other farmers in the district, were hit by TB. In the initial test he lost 30 maiden heifers and some cows.

“When you are trying to rear as many replacements as possible it’s a setback. The department blamed badgers and did what they could to trap and poison them. While we’re now clear it will take us a time to get back to where we were and get to my longterm aim of 100 cows.”

He does not intend to buy stock, instead focusing on breeding his way up. His herd is Friesian and he runs pedigree bulls.

To help supplement his income he and his brother Colin have a baling business in the local district and they do contract slurry spreading. He owns a digger for drain cleaning and site preparation work.

The farm is centrally raced with 15 x 1.6ha paddocks. He harvests 16ha of

baled silage each year and grows 6ha of kale for winter feed. This is grazed in situ. He uses urea in the spring and all slurry is returned to pasture.

The recent summer – June and July – were the worst in living memory for prolonged spells of wet weather.

There was an occasional sprinkling of snow.

Stock are housed during winter and in bad weather to protect them and to reduce pasture damage. Stock are calved inside on slats with straw bedding with an adjacent area for feeding.

Other than the concrete milking platform the cows stock stand on wide slats built over slurry holding tanks. Small quantities of washdown water from the milking area go to a holding tank.

Housed stock are fed silage straw and dairy ration.

“We have slurry capacity for up to six months and it only takes two days to completely empty all tanks with the use of an agitator and our slurry tank.”

Milkers are teat sprayed all season and sealants are applied at drying off.

Minnock monitors copper levels during the season.

Irish farmer David Minnock.

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Dairy News september 25, 2012

22 // opinion OPINION Ruminating

EDITORIAL

Time for Government to step in

milking it...

Honing in on dehorning

OSCAR NOMINEE Casey Affleck is the latest celebrity to join the ranks of PETA. The younger brother of actor/director Ben Affleck is trying to call attention to cow dehorning on dairy farms, a practice he calls “inhumane”.

A video entitled Dehorning: Dairy’s Dark Secret features Affleck explaining how the practice is done.

Fonterra shuts gate on fencejumpers

IS IT payback time for former Fonterra workers who jumped fence and joined New Zealand Dairies Ltd? The New Zealand Dairy Workers Union is considering legal action against Fonterra after eight staff members at the NZDL Waimate plant were given marching orders this month.

Former Fonterra suppliers who switched to NZDL have been taken back by the co-op. But no such luck for former workers.

What’s the fuss about?

WHAT’S ALL the fuss about permeate? Fonterra says it’s just adding milk into milk. But critics, including some small processors out for a slice of the local market, say it’s a ‘snot-like’ substance used to water down milk.

Most of Australia’s major milk brands decided this year to adhere to a self-imposed ban on permeate after a public outcry.

Should we do the same? Is the fuss a mere rattling of swords by small processors envious of Fonterra’s market dominance?

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Getting over mad cows

A WAIHEKE Island farmer is recuperating on a Pacific island after being attacked by two cows. Malcolm Philcox was set upon recently while trying to separate the cows from their calves on Orapiu Rd, helped by a policeman mate Clint Vallender.

When the cows got agitated by two farm dogs, Philcox got caught in the middle and was bowled over. He was flown to hospital by the Westpac rescue helicopter.

He and his wife left a few days later for a pre-planned holiday on Rarotonga.

FARMERS IN the central and lower North Island are numbed, bewildered and frustrated by the One Plan outcome in the Environment Court.

They feel helpless not knowing what to do and not being able to get answers.

Essentially the Environment Court has dished up the draft plan that was initially notified by Horizons in 2007, this seen by farmers as a direct slap in the face.

Millions of dollars were spent fighting the plan, but to what end – another appeal?

Much anger is directed at DOC and Fish and Game who farmers see as having little regard for economic impacts in their quest for a very green plan.

The Environment Court is also seen as being out of touch with reality, failing to listen to the primary sector and having little regard for the economic consequences of its decision.

Horizons Regional Council’s chairman says the plan will have a positive economic effect, but commercial growers and farmers strongly dispute that claim and talk of job losses and people going out of business.

Some farmers are saying, let’s try to work it out with Horizons, given that the council has expressed willingness to work with us.

Others don’t trust Horizons, because of their feelings of having been betrayed by the council and the green movement.

And they don’t trust some Horizons’ staff.

There seems little doubt Federated Farmers and other primary sector groups will lodge appeals. But that’s not as easy as it sounds because all they can appeal on is points of law – essentially the way the environment court judge ran the process or failed to give weight to certain arguments.

There is no guarantee an appeal will succeed or the overriding philosophy of the ‘new one plan’ will change much.

Farmers talk about denying access to their properties by Fish and Game members; that could make for interesting times.

The only serious option to killing off the plan would be for the Government to sack the Horizons council and, as with Environment Canterbury, appoint commissioners who could initiate a plan change.

That’s a big call, but it has appeal given the potential for economic harm in the present One Plan and the flow-on effects to the rest of New Zealand.

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Dairy News september 25, 2012

opinion // 23

Limit dry share ownership JAMES MORRISSON’S recent article* is

illuminating on cooperative purpose. It reminds us a cooperative exists first and foremost to serve its members, in Fonterra’s case to ensure the highest possible percentage of milk value ends up with the farmer.

Governance during Fonterra’s five-year attempted restructure has been reactionary, and the scramble to ‘eliminate redemption risk’ has morphed to a scramble to ‘discover price’.

Apparently, we need ‘the market’ to define our cooperative share value and to encourage members to cash in their cooperative shares to seed the fund that will determine this price.

This is a shift from the fundamental cooperative principles that serve the producer so well.

Cooperative share ownership linked to milk supply is fundamental because cooperative shares exist to ensure milk is collected, processed and marketed to maximise return to the farmer.

Farm profitability is maximised by prioritising milk price and profitable farmers will keep the co-operative’s stainless steel full.

I have no problem with investment in cooperatives, but they should not serve as an ‘investment vehicle’ ahead of serving those production needs.

Should investment needs start to take priority over production needs, farmers’ commitment to the cooperative purpose becomes skewed.

TAF (trading among farmers) and the new constitution will allow farmer shareholdings of up to double that required to back milk production. So a producer of 200,000kgMS may own 400,000 shares.

It sows the seeds of change in cooperative thinking.

Take the scenario of low commodity prices, increasing interest rates and a farmer who is indebted but owns a significant number of dry shares.

He’ll be under financial

pressure and if one farmer is under pressure, it is highly likely many will be.

They will lobby their board to increase the size of the fund, the mechanism for cashing-in dry shares.

Even those without dry shares may be tempted, or pressured, to sell the economic rights to their shares if their economic circumstances (or bank) dictate it.

That’s just one obvious example of how we could gradually demutualise our cooperative.

doesn’t solve it.

The council now seems firm in its belief that ‘price discovery’ is an essential purpose of TAF, to ensure the market discovers a good price to allow those that would, to cash out.

Why is our council so supportive of behaviours that incentivise exit from and disincentivise entry to our cooperative?

If the council is representative of Fonterra’s farmer shareholder views, it seems the seeds of cooperative demutualisation have already ger-

“I have no problem with investment in cooperatives, but they should not serve as an investment vehicle ahead of serving those production needs.”

Dr Onno Van Bekkum, cooperative strategist, makes the point as follows. “It might seem unlikely that a 75% majority of farmers would vote for a relaxation in any limits or controls.

However, a future vote would be taken from a future perspective – one influenced by shifts in interest from producer to investor interest. Farmers thinking individually as investors in future would take a different approach from farmers thinking collectively as producers today.”

The Fonterra Shareholders Council took a firm position, apparently representing farmers, in sanctioning a high risk proposal – TAF. They supported it based on controls on fund size being in place, yet failed to recognise one of the key drivers of fund size is the disconnect between milk supply and share ownership which dry shares engenders. The council now seems ambivalent on whether the controls advocated for were written into our constitution before the fund launch.

Having met the council earlier this month, the most disturbing thing was councillors’ questioning and logic. The redemption risk argument has been proven flawed: TAF

minated.

Much has been made of the fact ‘investors’ in the fund will not have voting rights, but farmers themselves will effectively demutualise the cooperative when economic drivers, set up by TAF, push them there.

Frustratingly, every scenario under TAF points to pressure to increase the fund size coming from farmers.

A low share price, below the company’s intrinsic value, would see arguments that the market must expand to improve ‘liquidity’ and realise the true value; a high milk price putting pressure on dividend could depress share price and trading, leading to pressure to relax controls and stimulate trading and price ‘discovery’; a low milk price and high dividend would typically mean high share prices at a time when, because of the milk price, farm balance sheets would be under pressure. Easy maths on that scenario.

The fact is, once the purpose of the cooperative share has changed, it is very difficult to protect the cooperative for future generations from farmers wanting to increase the fund size to look after their own interests shortterm.

The most effective

protection now is for the council to recognise that the number of dry shares any farmer can own will drive fund size. We need much lower limits on this, written into the constitution.

Unless the council shows more definitive action on the risks they

are responsible for mitigating, I suspect we are already beyond the point of no return on ownership and control of our cooperative. * Facebook: A lesson for cooperatives posted Sep 7 on www.nz.coop • Leonie Guiney is a South Canterbury dairy farmer.

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Dairy News september 25, 2012

24 // agribusiness

‘Payout not driving farm prices’ THE MILK payout used to be the main driver of the farm property market, but not anymore, says Bayley’s country property specialist, John Barnett.

“The market is driven by volatility… in 20002007 the market was driven by the payout; it doesn’t matter what the payout does now,” he says.

Farm prices instead reflect location, the productivity history of the farm, the contour, the capital improvement and risk aversion – how much uncertainty is measured into the equation, he told a Warkworth seminar on the future of agriculture.

“People have become more risk-averse. They would like to know that if they bought a property today they wouldn’t lose much money,” he says.

“If it needs new fences or new sheds, it is not a perfect farm so those boxes

won’t be ticked and therefore that property will be discounted compared to others to hedge that risk.”

Buyers these days are looking at farms 365 days of the year. The corporate equity market in particular

“People have become more riskaverse. They would like to know that if they bought a property today they wouldn’t lose much money.”

Barnett says many farmers think farms are not selling at present but is not the case; they have recorded a 32% increase in sales from last year to this year. He has seen more active buyers in the market but listings are short. “We have plenty of buyers but we don’t have the stock to show them.”

People always say spring is the best time to sell a farm when it looks its best, but statistically more farms transact in autumn.

Often a farm is seen in spring but goes unconditional in autumn.

is unconcerned about the seasons, because they buy a farm and keep it running whatever time of year.

Meanwhile the Real Estate Institute of New Zealand this month introduced a dairy farm price index to complement the all-farm price index launched at the end of July. The new dairy farm price index is based on the same methodology as the all-farm price index and is focused only on sales of dairy farms.

This new index will give farmers and investors in the dairy sector a more

accurate guide to the direction of dairy farm prices, excluding the impacts of location and farm size, says REINZ rural market spokesman Brian Peacock.

“The all-farm price index has been well received and this new tool will provide additional insight into the trends and direction of dairy farm sales.”

See www.johnbarnett. co.nz and www.realestate. co.nz

Farm prices are no longer linked to the payout, says property specialist John Barnett.

Selling at lower value DAIRY FARM prices per hectare dropped in the three months to August this year compared to the same period last year, REINZ figures show.

The median price per hectare for dairy farms in that period was $24,492 (21 properties) compared to $31,050 (28 properties) for the three

months ended August 2011.

The median dairy farm size for the three months ended August 2012 was 134ha.

However the price per hectare for the three months to August was up compared to the $22,679 for the three months ended July 2012 (29 properties).

Included in sales for the month of August were five dairy farms at a median sale value of $21,408/ha. The median farm size was 324ha with a range of 125ha to 445ha both on the West Coast. The median production per hectare across all dairy farms sold in July 2012 was 716kgMS.

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Dairy News september 25, 2012

agribusiness // 25

Costs, lower payout raise liquidity risk PAM TIPA

ABOUT 25% of dairy

farms will “have significant liquidity risk” this year on current forecasts for costs and milk price, says DairyNZ senior economist Matt Newman.

DairyNZ is basing its economic modeling on average farm working expenses this season of $3.65/kgMS, which is 20c less that last season

icant liquidity risk” and will struggle to meet working expenses and interest/ rent payments, Newman says. That was before taxation and drawings. “Those things will have to come out of overdraft,” he said.

“Fertiliser might be one farmers can afford to pull back a bit this year and supplementary feed – given feed prices are likely to be at a high level,” Newman told a Beef + Lamb NZ event at Wark-

Debts levels had doubled in the past decade on the average farm: 20% of dairy farmers had no debt and 20% held about half the debt levels. in view of tighter times.

Interest and rent is estimated on average at about another $1.40.

Average income will be about $6/kgMS including milk dividend, net stock sales and a little other income.

Looking at the standard deviations on past data, on those figures about 25% of farms “have signif-

worth, north of Auckland, on ‘Agriculture – where to from here’.

Newman says operating expenses before 2006-07 were about $3.50 average level; since 07/08 costs have risen to $4.50.

“So we need another dollar of milk income just to cover those costs.”

He says about 70c (per kilo basis) of that had

precision ag the answer?

GRID SOIL testing is saving one South Island 800-herd dairy farm $22,000 a year in fertiliser and lime costs.

Beef + Lamb NZ director James Parsons used the dairy farm example to illustrate the gains he believes could be made from precision agriculture such as this new approach to soil testing.

The current practice is to take soil plugs throughout a paddock to get a composite view, Parsons says.

A colleague of his, through the company Agri Optics, is looking at a more systematic method of grid soil sampling. “It’s just like we do in respect of variation in a breed. There’s just as much variation in fertiliser within a paddock,” he told the Warkworth meeting.

Parsons says they were finding big variations in samples within individual paddocks. He illustrated this with a graph of one paddock. “The spreader has come into the paddock, gone round and round the paddock in circles and run out by the time he gets to the middle. And when they head back out the gate they have dumped it. And they have done that over years.

“This is a high performance dairy – it used to be cropping – and they have a pH of 5.4 in the middle of that paddock….

“With the grid soil test they are working out where they need to correct this stuff and they are saving a significant amount. That was just on pH but you would imagine potassium, phosphate and sulphur would all be similar.”

been added with feed, fertiliser and stock grazing and another 30c on things such as compliance.

“Wages haven’t been too bad – they have been fairly steady,” he says.

Debts levels had doubled in the past decade on

the average farm: 20% of dairy farmers had no debt and 20% held about half the debt levels. “It is those guys who are going to feel the pinch in years like this when milk price is lower and things are tight,” he told the event.

From left, B+LNZ director and Northland beef and sheep farmer James Parsons , with John Barnett from Bayleys and and Matt Newman, DairyNZ senior economist at the Warkworth update.

Dairy News september 25, 2012

26 // management

Managing fertiliser risks BALA TIKKISETTY

AS THE soil starts warm-

ing up over the next few months, farmers will be preparing to fertilise their paddocks. For business efficiency and environmental protection it’s important to bear in mind the risks of applying too much fertiliser, and applying it in the wrong place or at the wrong time.

Getting it wrong means the benefits of fertiliser are wasted; it can end up contaminating groundwater and promote algal growth in nearby waterways.

As there are a range of risks when applying fertiliser, and strategies to help you avoid them, I recommend all farmers have a nutrient budget and a nutrient management plan for their properties and discuss their situation with their fertiliser rep.

It’s also a requirement of our regional plan to have such a budget and plan if N use exceeds 60kg/ha/ year.

Reps or consultants can help with nutrient budgets for those who don’t have them, while AgResearch last month released the new Overseer nutrient budget model version 6, which can be downloaded from http://www.overseer. org.nz.

One factor to bear in mind when doing nutrient budgets in Waikato is that recent soil quality monitoring results reveal that high fertility and compaction continue to remain problems on dairy and some drystock sites.

Another issue to consider is nitrate leaching.

Plants need nitrogen (N) for healthy leaf growth.

But N is an extremely mobile nutrient. If more nitrogenous fertiliser is applied than plants

can take up most of the unused nitrogen ends up leaching down through the soil into groundwater. Sometimes N will also be lost to waterways as runoff and some is always released back into the air as gas.

An important reason for inefficient N cycling in grazed pastures is the deposition of N by grazing animals in concentrated urine patches. The amount of N deposited is generally much greater than can be taken up by the plants in the area of the urine patch, and the excess N

can be lost through leaching. These losses are likely to be highest during peri-

“Getting it wrong means the benefits of fertiliser are wasted.” ods of high drainage with excess rainfall and low soil temperatures that limit pasture growth and N uptake: autumn, winter and early spring. Dung patches may also contribute to a lesser degree; dung consists mainly of

organically bound N that is released slowly.

The amount of N leaching from pastures can be reduced by: ■■ Timing fertiliser application to avoid periods when plant uptake of N will be low, such as when soils are saturated, during heavy rain, colder periods and times of low soil temperatures.

■■ Applying N fertiliser in split dressings (as many split doses as possible), rather than all at once.

■■ Irrigating farm dairy effluent to a large

Bala Tikkisetty, Environment Waikato says keep in mind soil quality monitoring results when doing nutrient budgets.

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chance of losing a lot of added phosphorus to nearby waterways.

Soil tests combined with an Overseer nutrient budget can help ensure soil fertility isn’t excessive and reduce the amount of nutrients lost from the farm.

Be aware that fertiliser can be poisonous if ingested by stock. Make sure animals don’t have direct access to fertiliser bins or other storage facilities and don’t graze pastures where fertiliser particles can be seen. It’s best to wait until sufficient rain has washed the particles into the soil.

In conclusion, I’d stress that large nutrient surpluses should be avoided for two important reasons.

Firstly, the surplus can in most cases be lost to the environment (N particularly), causing off-site problems, and secondly, nutrient surplus is a waste of money.

Conversely, a nutrient deficit can indicate soil nutrient reserves are being depleted, a situation that cannot continue and will eventually compromise pasture production.

So the nutrient budgets I referred to earlier help measure inputs and outputs and are an invaluable tool for helping avoid financial and environmental headaches.

• Bala Tikkisetty is a sustainable agriculture coordinator at Waikato Regional Council. For further advice contact him on 0800 800 401 or bala.tikkisetty@waikatoregion.govt.nz

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enough area. Adjusting fertiliser policy for effluent irrigated areas to account for the nutrient value of effluent. Using fenced wetlands and wellmanaged open drains as nutrient traps.

The nutrient phosphorus behaves differently from N because it binds with the soil and only dissolves slowly in water over time. This means it doesn’t readily leach to groundwater. But it can still damage the health of waterways through soil erosion and surface runoff into water.

Farmers can reduce the amount of phosphorus run-off by not applying phosphate fertiliser when heavy rain is coming.

Other tips include: ■■ Following the NZ Fertiliser Manufacturers’ Research Association Code of Practice for Nutrient Management.

■■ Applying fertiliser when the grass is in an active growing phase.

■■ Not applying fertiliser near waterways.

■■ Leaving a grassed buffer strip between paddock and waterway – the strip filters the phosphorus before the run-off reaches the water.

■■ Controlling run-off from tracks, races, feed and stand-off pads.

Meanwhile, if soil Olsen P levels are high, it’s likely more phosphate fertiliser has been applied than needed for optimum pasture growth. It also means there is a greater

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Dairy News september 25, 2012

28 // management

Chasing maize yield pays THE RECENT fall in

milksolids payout means most farmers are even more focused on maximising the return from their maize silage crop.

New Zealand research1 has shown that maximising yield is the key to maximising maize silage profitability.

Differences in maize silage quality due to hybrid genetics are relatively small when compared to genetic differences in silage yield. In the end it is the total energy yield that determines the potential return per hectare from a maize silage crop and this is largely driven by dry-

matter yield.

While climate plays a part in determining maize silage yield, making the right management decisions at the right time is critical. These include: 1. Choose the right hybrid. Choose a group of hybrids that are the right maturity and have the

right agronomic strengths for your growing environment. From this group of hybrids, use statistically significant side-byside trial data to select the highest yielding hybrids.

2. Plant at the optimum population. Published research has shown that you will achieve more

maize silage yield if you keep the planting population up. A New Zealand study examined the effect of a range of established maize silage populations (85,000, 100,000, 115,000, 130,000 and 145,000) on maize silage yield and quality. As plant population increased, maize silage drymatter yield increased. It is interesting to note there was no effect of plant population on any maize silage quality parameters with the exception of crude protein which decreased slightly with higher planting populations.

3. Use treated seed.

Seed insecticide treatment offers the best control of insect pests. The best option is Poncho® because it controls the three main maize insect pests – Argentine stem weevil, black beetle and greasy cutworm.

4. Control weeds.

Weeds compete with maize plants for sunlight, nutrients and water. Relatively small weed densities can depress maize silage yield. Ensure you have a good pre- and post-emergent weed control programme in place.

Meet crop nutrient requirements. Always take a soil test and apply nutrients as required.

Silage feed value is important, but if you are growing maize silage yourself you can’t afford to sacrifice much yield to achieve quality. Maize silage metabolisable energy content is largely determined by the amount of starch it contains.

Starch comes from maize kernels and as well as contributing to silage energy content, starch drives milk

protein percentage and therefore the size of your milk cheque.

While different hybrids have different grain-tostover ratios and therefore produce maize silage with varying levels of starch, many other factors will have a greater impact on the starch content of maize silage – climatic factors, crop nutrient status, time of silage harvest and cutter bar height.

My experience is that companies that have lowyielding silage hybrids often attempt to promote them on the basis of nutritional quality (i.e. soft starch or more metabolisable energy per kgDM).

Furthermore they usually have little or no data to support the claims they make. Never select a hybrid using feed analysis results of a sample collected from a silage stack.

The high starch or metabolisable energy value could be due to the factors above or even poor silage sample taking technique rather than hybrid genetics!

If you specifically want a high starch hybrid use nutritional data collected from side-by-side trials.

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1

• Ian Williams is a Pioneer forage specialist. Contact; iwilliams@genetic.co.nz.

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A: The three important gut worm species

A: We recommend drenching orally,

in calves are Ostertagia, Cooperia and Trichostrongylus. These are the worms that are most likely to interrupt growth rates in your growing calves.

for as long as you can do so safely.

Trials have shown that absorption of pour-ons can vary greatly between treated animals in a mob, and can be affected by factors such as licking, temperature, moisture, dirt in the coat and coat length. These factors can alter the effectiveness of the drench.

Worms you need to control.

Ostertagia worms are considered the most harmful worms in cattle.

There have been cases in cattle where a pouron wasn’t effective, but when cattle were injected with the same active it was effective at reducing egg counts.

These affect the abomasum, or true stomach, and can cause severe effects. An uncommon but devastating effect of this worm is Ostertagiosis Type II. This is where large numbers of larvae that have undergone ‘arrested development’ in the wall of the abomasum emerge suddenly, often causing death of the host animal.

Cooperia worm species are important in calves up to about 15-18 months of age.

Cooperia live in the small intestine and are important as they affect appetite and growth rates. Although they are not as damaging as Ostertagia, they are very important as they will often cause ‘subclinical’ effects; a decrease in growth rates without any overt signs that calves are unwell.

Trichostrongylus species are also important in calves and cattle, mainly affecting the small intestine especially in late autumn and winter.

ELE-00433-ADV3

Lungworms can cause snotty noses and coughing if present in large numbers – however, all broad-spectrum drenches are effective against lungworm, and coughing in calves is more commonly associated with a type of pneumonia.

Often the absorption of a pour-on is partly through licking rather than the intended route – cattle lick the pour-on either from other cattle or from their own backs.

Q: Which drench actives are good for calves?

A:

We always recommend using combination drenches, as this greatly reduces the probability of resistant worms surviving drenching – reducing the risk of drench resistance.

Many farmers are unaware that up to 70% of a pour-on drench can be transferred between cows through licking.

This was highlighted in a trial¹, where a group of cows was split into four groups – a different active was applied by pour-on to each of the three groups, with the fourth group left untreated. The cows were then run together in a 4ha paddock.

It was found that not long after treatment all of the cows had ingested significant amounts of all three drugs.

Mectins/MLs are considered to be the best drench family for ostertagia worms.

Cooperia worms in New Zealand have developed widespread resistance to both the ML/mectins and white drenches, which is why we recommend including levamisole in your combination drench for calves and young cattle.

Therefore, we recommend using a combination drench containing abamectin (the most potent of the mectin/ML drenches) and levamisole. A triple combination including these actives is ideal.

For all our calf drench tips visit

www.coopersonline.co.nz

As a rule of thumb, start drenching once calves have been weaned off milk and on pasture for at least three weeks.

WE RECOMMEND NOT DRENCHING CALVES THAT WEIGH LESS THAN 100kg.

ACVM Registration No’s: A10249 and A10119. ® Registered trademarks. Schering-Plough Animal Health Limited. Phone: 0800 800 543. CALF-252-2012 CAUTION: Do not use ALLIANCE or CONVERGE in calves less than 100kg liveweight. Do not drench with milk or milk-feeders, or while calves are suckling.

Reference: 1. 2004 IJP 34 1299–1307

Dairy News september 25, 2012

30 // management

Abby Hull, DairyNZ

Lifting in-calf rates peter burke

DAIRY FARMERS in the lower North Island could be $45,000 better off by improving their six-week in-calf rate and decreasing their empty rate. So said DairyNZ which, with local vets,

recently held two ‘mating event’ workshops, attracting nearly 200 farmers.

Consulting officer Abby Hull told farmers that in the Manawatu the six-week in-calf rate is just 65% -- well below the industry target of 78%.

The empty rate is 13%, again well above the indus-

try target of 6%. Hull says a farmer with 375 cows could be $45,000 better off if he hit the industry targets.

The two workshops – in four ‘work stations’ – had local vets, an expert from Massey University and DairyNZ consulting officers speaking about team

focus and heat detection, non cyclers – detection and treatment, nutrition, body condition scoring and bull management. LIC attended to give farmers a fertility focus report.

“Better reproduction is a major focus in our local DairyNZ plan,” Hull says.

“We realise we’re achieving below industry target levels for six-week in-calf and empty rates, much of it through not having a plan in place which the whole farm team understands. The purpose of the workshops was to provide key knowledge for improving this and to get farmers to produce their own written action plan to achieve this.”

Many factors cause farmers to fall short of industry targets, Hull says.

They need to understand every factor that could affect mating and plan to improve it.

Eight issues affect herd fertility: calving pattern, heifer management, body condition score and nutrition, heat detection, noncyclers, bull management, cow health and genetics and AB practices. All must be got right; mostly

there are no silver bullets, but having a plan that addresses all these subjects is the best place to start.

“It could be some small factor such as not using the right heat detection or not spending enough time observing the cows during the day. It could be a bigger issue like not getting cows to BCS 5.0 at calving [which]… impacts herd reproduction performance.

“Sometimes it’s hard to get your head around cows needing to be dried off based on condition score, but the reality is you will get that money back the next season.

“Cows calving at BCS 4.5 will produce less milk solids and cycle threefour days later than if they had calved at BCS 5.0; and cows that calve at BCS 4.5 are more likely to be less than BCS 4.0 at mating and therefore have lower submission and conception rates.”

Hull says even if farms don’t meet industry targets, any improvement is a good one – even a small increase can add extra profit.

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tility reports.

Sally Pocock, LIC customer relationship manager for South Manawatu, attended two recent DairyNZ workshops in Manawatu where farmers heard how to improve their six-week in-calf rates and lower their empty rates.

Pocock sought to show the value of the ‘fertility focus report’ LIC generates, based on data supplied by dairy farmers.

“The fertility focus report is a measure of cow performance during mating. It gives the farmer an overview of how well mating has gone. It gives them their six-week in-calf rate Sally Pocock and their empty rate and tells them how well they are performing. It is a key indicator for their conception rates and how things are going to look.”

Pocock says farmers get as much value out of their report as they put into it. The information is put into LIC’s Minda database, often by the technician who AIs the cows, so all the records are entered on the day the cows are inseminated. “Sometimes farmers will just use a mating book and send the paperwork for us to enter; others will load the information themselves. The more accurate the data, the more accurate the report.”

The report looks at a farmer’s mating period and takes account of the animals put up to AI in the first six weeks .

“So you’ve got the time when you’re putting your cows out for inseminating then you’ll do your pregnancy testing and get those results and they will give you your calving pattern. As the farmers are putting their records through, the report is being generated behind the scenes.”

But the report is retrospective and right now is looking at what happened a year ago.

Dairy News september 25, 2012

32 // management

Research seeks fix for nutrient loss RESEARCH BY Ballance Agri-Nutrients is intended to help farmers work within limits specified for fertilisers.

The co-op’s Clear-

view Innovation scheme, costing $32 million, involves new and targeted approaches for nitrogen and phosphate applications. Specific projects will

help farmers decide where on-farm to apply nutrients for maximum benefit and minimal loss.

“There is a definite shift towards regional

councils requiring farmers to work within nutrient loss limits,” says Ballance R&D manager Warwick Catto.

“Our work will help

Warwick Catto.

farmers decide exactly where on the farm would benefit most from nitrogen application, determined by different soils’ response to it. It… means

less nitrogen for more grass. What we want to do is increase nitrogen uptake efficiency from the usual 10:1 return to 15:1.”

Referring to targeted phosphate use, Catto says “for most farms, phosphate losses come from only 20% of the land area.

With phosphate risk mapping we can reduce those losses. That will enable 80% of the farm to gain from targeted phosphate applications and increase phosphate efficiency by 20%.”

Ballance has let contracts for about $3 million of research under the Clearview scheme, including spring field trials of nitrification inhibitors in Waikato and southern South Island.

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Catto says farmers’ feedback is positive because everyone wants to produce more but with fewer environmental impacts.

“There’s a lot of enthusiasm and people are keen to see the results of the work. We’ve moved quickly to get the programme underway and we should see the results from these first contracts in about 18 months.”

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head the keynote speakers at the November 22 conference of the Northland Dairy Development Trust (NDDT) in Whangarei.

Attendees will hear Wilson’s aspirations for Fonterra and the challenges facing the industry. A Fonterra director since 2003, Wilson will succeed Henry van der Heyden in December at the annual meeting.

NDDT chairman Richard Booth says the trust hopes three keynote speakers and a full programme will attract a good crowd.

Also speaking will be BNZ economist Doug Steel and DairyNZ’s strategy and investment leader for productivity Bruce Thorrold.

Steel will outline the current global financial markets and advise farmers how best to prepare their businesses for what lies ahead. Thorrold will present the forage value index (FVI) and an update on the feed conversion efficiency project. The conference will also present DairyNZ work on behalf of farmers, Booth says.

“Results from the Northland agricultural research farm trials comparing kikuyu and ryegrass will be profiled and we’ll update pasture persistence trials at the Jordan Valley demonstration farm, trial work in standoff pads and tips on design and management. We’ll also look at tips to manage staff in the first 100 days, to get the best results from them.”

The event is free, space is limited.

RSVP abbey.cameron@dairynz.co.nz or tel. 09 433 7527

Dairy News september 25, 2012

management // 33

Effluent delinquency attracts heavy fines BIG FINES imposed

this month on three farmers in the Tauranga District Court highlight the need for dairy farmers to be proactive in managing effluent, says a council pollution manager.

The three were sentenced on September 10 for unlawfully discharging effluent. Separate prosecutions had been brought against them by Bay of Plenty Regional Council.

All were charged after routine checks by council officers in November, 2011.

The council’s pollution prevention manager, Nick Zaman, says dairy farmers should not attempt to get by with systems

barely able to cope with farm effluent at the best of times.

In the first case, Mark Stuart Dibley was fined $32,500 plus costs for allowing effluent waste to flow over land at three different locations, including into a roadside drain and a watercourse in the Lake Rotorura catchment, on his farm at Oturoa Rd, Rotorua.

In the second sentencing, Bayfield Farms Ltd admitted two charges of unlawful discharge of dairy effluent which had flowed into the Waitahanui Stream near Te Puke.

Bayfield Farms was fined $35,000 plus costs.

In the third sentenc-

Message falling on deaf ears?

WAITAKI MP Jacqui Dean says a spate of hefty fines handed out for effluent breaches send a clear message to farmers that poor practice will not be tolerated.

In addition to the Bay of Plenty prosecutions, a Southland farmer was recently fined $50,000 for unlawfully discharging dairy effluent, she says.

“I acknowledge that things can go wrong on farms, especially when wet weather and long hours take their toll, but it’s obvious the courts have little sympathy for those who flout the law and get the effluent management wrong.

“There have been plenty of warnings for the dairy sector. Fonterra and DairyNZ have conducted awareness campaigns and the message really ought to have got through by now.”

ing, Noema Archie Watene admitted one charge of unlawful discharge of dairy effluent which had flowed into a farm drain and then to Totara Stream at a farm at Rautoki Valley Rd, Rautoki. Watene was fined $21,440 plus costs.

Enforcement orders were also imposed requiring Watene to attend an effluent management course and to provide an

effluent management plan for the farm to the council’s satisfaction.

“It’s disappointing that we continue to see cases where the herd size has increased considerably (as in Dibley and Bayfield Farms) but the farmers have not given adequate attention to improving the farm’s effluent system or effluent management system to reflect

the increased herd size,” Zaman says.

“The council encourages farmers to attend effluent management courses and to make use of resources regarding effluent management provided by organisations such as Fonterra, Dairy NZ, and the regional council.

“We hope these sentences serve as a deterrent to others,” he says.

Courts are handing out hefty fines for effluent breaches.

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Dairy News september 25, 2012

34 // management

Dairy to fore at Gore andrew swallow

OVER HALF the papers at this year’s

Grassland Association conference, November 6-8, are directly relevant to dairying, say the organisers.

While the venue, Gore, was once hardcore sheep and beef country, with some cropping on the lowland, dairying is back in a big way.

An entire session in the first morning is dedicated to ‘Dairying in Southland – Challenges’ and even the afternoon field trip – to a deer, sheep and dairy grazing property – has a dairy link in that it’s headed ‘Responding to competing landuse change’.

The second day’s field trip has a more direct dairy focus, with a visit to Nithdale Station, a well-known stud and commercial sheep and beef property which recently converted a block to dairy. “It’s fairly high and exposed for dairying,” notes organising committee member and dairy farmer from West Otago, Craig Tomsett.

Parallel sessions on the second morning also promise detailed dairying content, focussing on use of brassicas and

other crops in the industry, and wintering solutions including housing.

Local farmer Alistair McGaw, who has a “top-of-the-line” wintering shed and a high producing herd, will contribute to that session, notes Tomsett. “Consultant Lloyd McCall will also be part of that, looking at farm profitability under the different dairy systems, levels two through to five.”

Tomsett says the content of the conference is as much a reflection of the direction of recent research as organisers’ desire to balance interest across the sectors. “There’s been such a focus on environmental performance in the last five or six years and a lot of these papers focus on reducing nitrate leaching, wintering systems and the like. The public’s been demanding answers on these and a lot of the research funding from DairyNZ and others has focused on that as a result.”

And while they’re not labelled as such, several sessions on pasture management and improvements should also be relevant to dairy.

Tomsett says of the anticipated 300plus attendance, typically a third would be farmers and he’s hoping at least half of them will be dairying.

Tomsett’s neighbour, sheep and beef farmer Nelson Hancox, is chairing the local organising committee and has attended several previous NZGA conferences. “It’s just a really good place for farming, industry and science-based people to catch-up and for the farmers present to have some input into where the research is going in the next five to ten years.”

The conference theme is ‘Opportunities in land use change’. Programme outline and registration forms on www. grassland.org. nz.

Earlybird registration closes Oct 5: $370 for members, $485 for non members, or $200 for student nonmembers. Association annual membership is $85. Single day earlybird rate: $150.

in brief Guardians get going

Nelson Hancox

OTAGO ‘GRASS-to-glass’ milk venture Gardians last week took its first intake and hopes to open officially soon.

The Balclutha plant is a 50/50 joint venture between Dunedin dairy farmer Grant Paterson and Sutton Group, Auckland.

While the firm remains tight-lipped on its intentions ahead of that opening, its website says its milk is sourced from “a select group of sustainably run farms and dairy herds… under the control of Grant Paterson.”

“The 11,500-strong herd of dairy cows grazing on fully owned, independent farms is the ideal starting point for a range of premium nutritional products.”

The spray drier at Balclutha will produce at least 20,000 t/year of such products to be sent to Sutton Group for consumer packaging and export.

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Dairy News september 25, 2012

36 // animal health Matt and Cushla Smith.

OAD milking, stock health benefit newcomers last season due to their condition we didn’t dry off our heifers until May 16.

“We ensure they’re getting the energy requirements to maintain and TAKING EXTRA care of young put on weight,” says Matt. stock and strategically adopting onceThis season the R3s went into a-day (OAD) milking have allowed a calving with a condition score of at Northland couple to halve their calvleast 5.0 despite being milked into ing spread while increasing producMay and most of them were amongst tion. the first calvers this season, which was Matt and Cushla Smith are equity a direct result of the good condition owner/operators on a 195ha 450-cow they were in during mating last year. farm at Mangawhai, one hour north of The Smiths did everything Auckland. possible to shrink the mating The couple took over period, reducing it to 10 weeks, managing the farm in the what and where which Matt says has come from 2009-10 season and had focusing on cow condition and to find 500 cows when Farm size: 195ha flat to rolling. animal health all year-round. their sharemilker moved Herd size: 450 Friesian.

“The results from all the hard to another contract. There Calving: spring calving. work and planning in the curwere no herds available that Farm location: one hour north of Auckland. rent season will come through size and they had to cobble in next season’s calving pattern.” together a milking herd from five different herds, “some of which best possible start to the season,” Pre-mating heats are of extreme interest and any signs of cycling cows are says Matt. were unrecorded.”

The entire herd is ‘metrichecked’ recorded and entered into LIC Minda This resulted in a 20 week calving and an empty rate of 10% from three weeks prior to mating with for an indication of which are non15 weeks of mating. “The large calv- infected cows being treated and cyclers prior to mating. Then they ing spread reduced our days in milk Matt says the cows that need treat- can be dealt with in a timely manner. which was cutting into our bottom ment aren’t necessarily those that had “Everybody has a yellow notebook issues during calving. “Last season and mobile phone which allows them line,” says Matt.

Last season 90% of the herd was about half of the cows that required to record critical events, such as cows submitted to mating by the third week metricuring had natural calvings on heat, at any time.”

DairyNZ inCalf data presented with 98% of the herd calving within without any troubles whatsoever.”

One group of animals that get at their Repo Rock seminar prethe first nine weeks this season.

The Smiths attributed this extra care is the two- and three-year- dicted an increase in potential profit turnaround to factors including old cows. The Smiths break first and of $45,000 for the 2011-12 season paying extra attention to young stock second calvers into a separate herd due to improved in-calf rates. The and making sure every animal goes and milk them once a day all year. Smiths already have improved prointo mating in the best condition Cushla says it has paid off with the duction from 695kgMS/ha in 2009young animals in-calf rate and over- 10 to 902kgMS/ha last season despite possible. milking 60 fewer cows and having just Cow condition pre calving and all production.

“For the young animals firstly it under a third of the herd on OAD. mating is a priority on the farm, “In 2011-2012 we had almost 1/3 of achieved by consistent quality feed comes down to condition to ensure a good mating and secondly their days our herd on OAD; this season we will and use of the OAD mob.

They draft the herd into sev- in milk. Too many young animals are have up to 40% of the herd on OAD,” eral mobs post drying-off, largely to lost out of the system long before they says Cushla.

“Extending days in milk at both make sure competition between the reach their full production potential ends of the season together with animals is minimised. “It’s easier to as 4-8 year-olds.

“Using OAD for the young ani- improving the quality and quantity manage smaller mobs.”

This winter the herd mals has enabled us to minimise cull- of feed the cows get has enabled us was grouped into late ing of these animals through better to increase the farms production yearcalvers, mid calvers, early calvers, in-calf rates of the 2-year-olds. Also on-year.”

GARETH GILLATT

three-year-old cows and two-yearold cows.

This isn’t the only work done. The Smiths also CIDR non-cyclers and do liver biopsies and blood tests premating to check the mineral status of the herd.

All calved cows also get a pour-on drench and mineral oral drench and have their tails painted and trimmed. “We like to know we have given the cows the

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Dairy News september 25, 2012

38 // animal health/feed

White clover survival ERROL THOM

WHITE CLOVER is an

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stolons begin to grow. The increasing milk producburied stolons then die. tion when eaten by cows.

The spring grazing The main factors strategy of increasing affecting survival of young grazing freclover plants and the quality of pastures are treading damage and shading by the companion grass (usually ryegrass).

This often happens in spring and requires management strategies that reduce damage and competition.

Achieving recommended grazing residuals of 3.5-5cm or Errol Thom 7-10 clicks on the rising plate meter promotes growth quency to 16-26 days from and survival of white 60-100 days in winter, and clover plants. This management strategy does the aiming for residual grazing heights of 3.5-5cm, same for ryegrass. promotes the survival and White clover is a growth of the new white legume and can use nitroclover plants by reducing gen from the air and grass shading. make it available to com-

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panion grasses through the normal processes of growth and then decay.

White clover plants are made up of a network of stems called stolons that grow along the soil surface. These have nodes from which leaves (laminae), roots and buds develop.

Growing points are found at the end of stolons, which are located close to the soil surface, well protected from damage by grazing. Nodules on the roots contain bacteria that assist with the capture of nitrogen from the air.

Over autumn/winter, stolons (including growing points) are buried by earthworm casting and animal treading. New clover plants appear in spring each year, as dormant buds on the buried

Research has shown that fast spring rotations, similar to those suggested above, also increase ryegrass tiller density. This increase can be promoted further with the application of nitrogen fertiliser.

Shading by longer companion grass can be detrimental to the survival and growth of young clover plants. To combat this, fast spring grazing rotations and high utilisation of feed or silage making can be used.

Surviving white clover plants develop stolons on the soil surface over spring and summer as they increase in size and re-establish the branching network of mature plants.

For more information on pasture management, visit dairynz.co.nz/pasture.

• Errol Thom is a DairyNZ senior scientist.

Dairy News september 25, 2012

animal health // 39

Early tests will keep endometritis at bay gareth gillatt

DAIRY FARMERS

should consider early ‘metrochecking’ to prevent a loss of thousands of extra milk days to endometritis, say DairyNZ representatives and Northland vets.

DairyNZ representatives told attendees at RepoRock seminars in Northland this month that 10-20% of the national dairy herd was likely to be suffering from endometritis, a condition that infects the vagina and stops the cow from getting in calf.

An estimated 80% of cows with the condition were likely to calve two-three weeks later as a result with 20% of those animals failing to get in calf at all – potential cost of $4300 in lost produc-

tion on a $5.50 payout for a 250 cow herd.

Maungaturoto vet Meredith Love says even though cows will cure themselves over time they represent a huge opportunity for farmers to shorten up the calving period and get more days in milk.

Metrichecking and metricuring cows involves using a probe to examine the vagina and administer antibiotics if endometritis is discovered.

While most cows that suffer from endometritis have had difficulty calving, Dargaville vet Graeme Ewenson has seen a 20% increase in cows with a normal birth needing treatment for the condition.

“In this wet winter many cows have been lacking trace elements such as calcium,” Ewenson says.

“Calcium is used in muscle contractions so when a cow doesn’t have enough its uterus doesn’t close up as quickly as it should and an infection gets in.”

Vets recommend testing sooner rather than later and Love says while a farmer might not pay as much to check their herd

closer to actual mating time the best time to test is three-four weeks after the first cow has calved.

“You are giving yourself options,” says Love.

“By doing the test earlier you are able to treat those animals so that when it comes to mating they are ready to submit to AB.”

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Dairy News september 25, 2012

40 // animal health/feed

Balance feed quantity and quality

Chemical analysis of feed is increasingly becoming important on our farms.

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OPTIMUM FEEDING is a balance between the quantity of available feed and the quality of that feed.

However, since grazing ruminant animals can survive on a wide range of pasture and forage feeds, the objective becomes optimising the ‘efficiency of conversion’ of feed into animal products (such as milk, meat and wool) by management of the quantity/quality trade-off.

That’s why chemical analysis of pasture and forage feeds to determine ‘feed quality’ is increasingly important in the New Zealand farming scene. Getting a feed test gives you the information you need to make sound decisions and increase productivity.

Plus, analytical testing can be used to predict how well a particular feed will meet animal requirements.

Keep in mind the type of livestock and the production objectives will influence the quantity and quality of feed required in the complete diet to achieve top production. And remember the critical time to optimise dairy cow diet for best economic response is the three months between calving and mating.

This article outlines the types of tests available to help analyse pasture and forage feeds.

Feed Quality For optimum productivity, the following properties of the feed are important to track and should be tested: ■■ Dry matter intake ■■ Crude protein content ■■ Carbohydrate composition ■■ Digestibility ■■ Energy yield from the digested feed ■■ Mineral and trace element content Dry Matter Another measure to test for is the residual dry weight of pasture, forage or silage after removal of moisture.

This is usually expressed as ‘percentage of the fresh weight.’

The dry matter intake of a cow, for example, depends on many vari-

Getting a feed test gives you the information you need to make sound decisions and increase productivity.

Plant carbohydrates Testing plant carbohydrate levels is another useful test. Plant carbohydrates may be conveniently classified as structural carbohydrates and non-structural carbohydrates. Levels of structural carbohydrates increase with increasing plant maturity with a corresponding decrease in plant digestibility.

The key non-structural carbohydrates in forages are the soluble sugars such as sucrose, glucose and fructose. Soluble sugars are important for stimulating microbial activity in ruminant animals. Plant soluble sugars fluctuate diurnally with highest levels generally found in the early to mid-afternoon period – typical levels for temperate grasses can range from 5 – 15 %.

Acid detergent fibre (ADF) and neutral detergent fibre (NDF) Knowing your pasture’s levels of

ADF and NDF can provide estimates of the less digestible structural carbohydrates in your forage. ADF consists mainly of cellulose and lignin with small amounts of nitrogen and minerals. The NDF fraction includes the hemicelluloses in addition to the ADF component of plant tissue. Very high fibre levels slow the rate of digestion and limit dry matter intake, but a certain amount of fibre is required to stimulate rumen activity.

Digestibility Feed digestibility is defined as the proportion of forage dry matter able to be digested by the animal. It is largely influenced by the maturity of the plant species and declines as the plant matures. Within pastures, the species type also influences digestibility. For example, clovers retain a higher leaf: stem ratio with increasing maturity and so maintain a higher digestibility relative to grasses.

Digestibility is measured in two quite distinct procedures: In vivo digestibility – determined directly by animal feeding trials by way of a mass balance from what is consumed, digested and excreted.

In vitro digestibility – determined by wet chemistry using rumen fluid taken from research animals, or using purified cellulase enzymes.

In vivo digestibility provides the most meaningful estimate of animal performance, but the cost of setting up animal trials for measuring in vivo digestibility, is prohibitive.

Therefore, most laboratories measure in vitro digestibility by incubating samples with enzyme preparations and use these data to predict in vivo digestibility from in vivo standards.

Metabolisable energy (ME) ME is a useful test to run – an estimate of the energy content of the feed potentially available for maintenance and production in ruminant animals.

It is that proportion of feed energy absorbed from the digestive tract and retained for metabolic processes and the value is expressed as a proportion of the dry matter (MJ/kg). to page 42

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ables including: live weight, stage of lactation, level of milk production, environmental conditions, body condition and the quality of the feed.

Crude Protein The protein content of the pasture or forage is a good test to include in your testing regime. It is directly related to the nitrogen content, which varies with growing conditions, plant species, and maturity of the plant.

Once you know your pasture’s protein content, you can monitor animals’ intake, keeping in mind crude protein requirements are dependent on the class of livestock being fed. For example, a maintenance requirement for a dairy cow may be as low as 12% protein, whereas a range of 16–20% protein is needed for growth and lactation.

Ask your vet to use Gribbles Veterinary Pathology, New Zealand’s leading provider of BVD testing and advice.

Call now for more information for a 1 week obligation free trial 09 414 1028 www.prosol.co.nz

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The 2012 DNA Proven Teams will not receive progeny tests until 2015. This makes it hard to show how accurate their gBWs are. To solve this we’ve used our latest genomic selection technology to calculate the gBWs of three teams due for their first progeny tests later this season. As these teams’ progeny test data becomes available we will publish the results, proving within a matter of months just how accurate genomic evaluation is. For all the details see www.lic.co.nz.

Dairy News september 25, 2012

42 // animal health/feed Feed must meet animal requirements.

Feed quantity and quality balance from page 40

Although ME is a frequently sought measure of feed quality, it is a value derived from other feed factors such as in vivo digestibility and cannot be measured directly in the laboratory.

Keep in mind that ME overestimates production energy (net energy) when dietary protein is excessive, typical in lush spring grown pasture.

Minerals & trace elements Livestock require ade-

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quate levels of certain elements e.g. magnesium, copper, zinc, cobalt and selenium.

For optimum animal health, efficiency of energy utilisation, and productivity, forages need to contain sufficient levels of these and other elements.

Therefore, it’s important to test your pasture for these important trace elements.

Deficiency of magnesium and/or calcium in dairy cow diets results in metabolic stress.

Subclinical deficiency will reduce feed conversion efficiency, production and conception rates at mating.

Clinical deficiency in cows is a major animal welfare issue and financial cost to farmers.

Summary Testing for the above measures in your pasture will allow you to make better pasture management and animal nutrition decisions.

And, it’s important to factor in the following as you analyse your test results: Highest levels of protein, digestibility and energy do not always result in the best productivity.

Provided a feed contains sufficient protein and fibre for the appropriate livestock class, higher levels may

not be beneficial.

For example, excessively high protein levels raise the amount of nitrogen excreted in the urine, so digestion of the excess protein is actually an energy cost to the animal.

Dry matter intake and subsequent production/ liveweight gain increase in the short term with an increased pasture allowance.

However, at a constant dry matter intake, increases in production may be achieved when more digestible feed is offered.

Supplements may also be used to complement any deficiencies in quality or quantity in the ration.

Hill Laboratories provides the widest range of feedstuffs testing of any commercial lab in New Zealand, including a range of tests specifically designed to help farmers assess the feed quality of their pasture and forage crops.

Hill Laboratories uses the latest analytical chemistry techniques, including nearinfrared spectroscopy (‘NIR’), to deliver reliable and accurate results as quickly as possible.

Tel. 07 858 2000 (North Island) or 03 377 7176 (South Island). www.hill-labs.co.nz

• This article first appeared in Getting the Basics Right 2012 edition.

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As you’re breaking out the tail paint, have a yarn to your vet about the best time to start CIDR-ing.

Dry matter intake of cows depends on many variables.

Dairy News september 25, 2012

milk quality // 43

Best practice, made easy RESEARCH SHOWS

more efficient milk harvesting could increase our national milk yield up to 5% per year. It could also save the average dairy farm thousands of dollars a year in energy, labour and animal health costs.

So what are the key steps? The new website covers four in-shed essentials that can make or break an efficient, high quality milk harvesting process: ■■ Liners ■■ Milk filters ■■ Tubing ■■ Teat spraying Together, these basic components have much more impact on milking performance than most farmers realise, says Skellerup, which began working on the best practice guidelines some years ago.

“We started with the areas where farmers most

often approach us for trouble-shooting, and worked from there,” says national manager Perry Davis.

“It quickly became apparent there were lots of common issues costing farmers time and money, yet relatively easy to fix with the right information.”

Milking liners are a great example. Old, worn or ill-fitting liners can waste energy, cause grades and damage cows. They are one of the single biggest factors influencing milk production, and one of the most economical things to replace.

Yet at least 50% of dairy farmers don’t change them often enough, expecting them to last nearly twice their actual lifespan.

That’s like expecting the average cow to milk well for 20 years.

The nature and role of milking liners means they are likely to have more impact on milking efficiency, hygiene and cow comfort than any other component of a milking machine.

the damage could already have been done, either in wasted energy, milk hygiene, cow health or all three.

A good liner, well-fitted, will completely milk a cow out quickly and effi-

When it comes to teat spraying, best results come from maintaining an appropriate teat spray programme throughout the season.

“They are the one part of the machine in constant physical contact with the cow. But because they’re mostly hidden inside the shell, it’s easy to assume they’re working properly even when they’re not,” Davis says.

By the time cups start falling off cows during milking – the first major sign liners are worn out –

ciently.

It doesn’t slip, and it leaves the teats looking similar in size and colour to how they looked before milking.

“A badly-fitting overused liner is just the opposite. It could leave milk in the udder, slip off the teat and/or leave noticeable rings at the top of the teat.

“Permanent teat

damage is not only possible, but common. On top of that, any cracks in the rubber are likely to harbour bacteria.”

In this era of bigger herds and fewer dairies, milk filters likewise are an increasingly important consideration, Davis says.

“Milk filtration systems are under more pressure than they used to be.

Farmers may not realise they have a problem until sediment rates rise and milk quality falls.”

Most filters are not reusable, and even after careful washing their performance will be compromised to the point where they can burst.

Economically, re-using filters doesn’t stack up either. A new filter costs 50c, but it takes at least $2.50 of labour a day (two milkings) to wash the

660 The number of antibiotic syringes Helen & Bruce Donald of Tirau used on their farm per year before installing ADF.*

to page 44

More efficient milk harvesting will help deliver better returns.

With ADF installed they only use…

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To find out more visit ADFmilking.com or call 0800 233 645 Healthy cows, healthy profit *

The Donald’s installed ADF in August 2011. These figures are supported by their vet Regan Gerring, BVSc, Tirau Vet Centre.

To achieve similar results ADF must be used as part of a mastitis control programme.

Dairy News september 25, 2012

44 // milk quality

On-farm tests easy to use, gives peace of mind MILK TESTING on-farm guards

against a load being rejected, says Food Tech Solutions, marketing a test that quickly and cheaply detects antibiotics in milk.

Tests that detect the most commonly used drugs can be run in as little as two minutes, the company says.

The tests can be run in an incubator and read visually or in an optional reader which incubates and reads the test strip, presents an answer in printed form and stores all results in memory.

The sensitivity of these tests is said to be similar to New Zealand regulatory tests run by the official testing laboratory for farm grading. “They are easy to use and provide peace of mind for the farmer.”

The adulteration of a vat of milk with

Milking best practice boosts yield

Testing milk on farm guards against a load being rejected.

from page 43

filter, working on an average of 10 minutes per filter at an hourly rate of $15.

Best practice for milk tubing includes replacing tubes before they show splits or severe perishing on the outside.

That’s because the inside surface of the milk tube is much more important – and vulnerable – than the outside.

It deteriorates quicker than the outside because it is attacked by milk fat and cleaning chemicals, so by the time the outside is perished the inside is likely to be causing quality problems. As a rule of thumb, any rubber ware that touches milk should be changed once a year.

When it comes to teat

antibiotics through industrial sabotage is well documented internationally, so is the issue of cows being milked during a drug withholding period. In both cases knowledge of the antibiotic status of the milk is required and of great value, it says.

“Historically test methods have been used that require up to three hours to produce a test result. Often this time is not available. The tanker is due any time.

“Farms relatively isolated from [factories] face long haulage times before depot tests can confirm the milk quality is acceptable. Testing at the farm prior to collection offers cost effective insurance against a load been rejected.”

Tel. 09 576 7326 peterb@foodtechsolutions.co.nz

spraying, best results come from maintaining an appropriate teat spray programme throughout the season, and from ensuring good coverage of the teat.

“Poor teat coverage is common on New Zealand dairy farms,” Davis says. And with mastitis estimated to cost an average of $4000 per farm, per year, the potential gains of effective teat spraying make sound commercial sense.

Having the right equipment for teat spraying gives better coverage for less chemical usage, and lower operating costs as well as reduced risk of bacterial infection and resultant grades. www.dairybestpractice.co.nz

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KEEP YOUR BUSINESS MOVING FORWARD WITH SPECIALISED MILK QUALITY TRAINING. You know how important it is to ensure that your dairy operation produces the best quality milk possible. AgITO’s Milk Quality programme will give you and your team the right skills and knowledge to ensure high quality milk production and manage animal health.

Here’s what one of our previous graduates has to say about AgITO’s Milk Quality programme.

Currently milking 860 cows at a Landcorp dairy unit near Dobson on the West Coast, 2IC Rochelle Roberts says the skills and knowledge she learned at AgITO’s Milk Quality programme have given her an advantage in the dairy shed.

“Attending was beneficial because I’ve been able to understand the processing of the milk a lot better and get better quality out of the product,” she says. “It’s important to understand what can go wrong in the dairy so you can be more aware and do your job better.”

“We get better results in our monthly plant check now,” she says. “I’ll see something that before I didn’t know was wrong but I do now – I’m noticing things more before they happen.”

She adds that being able to bring back the skills and knowledge she learned to the farm was one of the greatest benefits of attending.

“I’ve also been able to train our other staff,” she says. “In general the Milk Quality programme helps because it teaches you not to put stress on cows. It’s also about good practice on farm – not just hygiene in the shed.”

Rochelle Roberts, 2IC, West Coast

The Milk Quality programme is made up of three workshops. Milk Quality Stage 1 is aimed at the whole milking team and Stage 2 at supervisors, sharemilkers, managers and owners. A third and final workshop, Mastitis Management, is aimed at management level and helps farmers create a mastitis management action plan for their own farm.

The workshops teach the milking team the skills, knowledge and procedures needed to increase the profitability of the farm dairy operation. It has been designed to help attendees’ dairy operations meet the highest standards of milk production.

Rochelle learned a lot from both Milk Quality Stage One and Two and the benefits of having this extra knowledge are apparent as she goes about her day.

There are limited spaces available in Milk Quality Stage One and Two and Mastitis Management courses, running from now until the end of the year.

Don’t miss out. To enrol or for more information, contact your local AgITO team on 0800 691 111 or visit www.agito.ac.nz

Dairy News september 25, 2012

46 // milk quality

Dry cow therapy – essential part jane lucy-hulbert

ONE OF the most important times of year for reducing mastitis is the dry off period. Decisions made at this time can affect mastitis for the next 6-12 months.

A dry cow management plan will ensure everyone on farm knows what needs to happen at this important time of year and how dry cow treatments will be administered.

Dry cow therapy (DCT) is an essential part of mastitis management, and when done properly, can add tremendous benefits to long-term milk quality.

Deciding which cows to treat with what dry cow option is a key part of working with your vet towards improving your bottom line.

About dry cow therapy Dry cow therapy treatments contain longacting antibiotics to treat cows with existing cases of mastitis and prevent new infections from developing during the dry period.

They should only be used immediately after the last milking of a cow’s lactation and should not be used to treat quarters or cows dried off previously.

Internal teat sealants are another option for use at dry-off.

These don’t contain antibiotics, so more care must be taken when introducing them into the cow’s teat.

Teat sealants can be used in combination with antibiotic dry cow treatments to extend mastitis prevention during the dry period and before calving.

The product should only

be administered after the last milking of lactation and immediately after dry cow treatments, if being used in combination.

In some situations internal teat sealants may be used without dry cow treatments, but only after careful evaluation with a vet.

Quick tips for using DCT and teat sealants Administering DCT and teat sealants presents some hazards, for cows and people.

Bacteria can be easily introduced into the teat if the teat end is not disinfected properly or tubes become infected. Infection by these environmental bacteria can cause severe mastitis. In some cases, sickness or death of the cow can occur.

People can be injured by cows during admin-

Teat spraying will help keep mastitis at bay.

Dairy News september 25, 2012

milk quality // 47

of reducing mastitis istration of DCT, so take your time and have help.

Antibiotic residues in milk and meat (including calves) need to be avoided by observing the correct number of tubes used, minimum dry periods and correct withholding period after calving.

To minimise hazards and costly mistakes: 1. Plan the day and people required Administering DCT or internal teat sealants is difficult and requires time and effort. Make sure all operators have been adequately trained and are supervised well. A stepby-step reminder of the correct disinfecting and insertion technique is illustrated (below).

In large herds, dry off

a second container of hot water. Make sure the tubes stay dry and NEVER come into contact with water or dirt before use.

3. Avoid over-treating cows Due to the repetitive nature of treating cows with dry cow products, mistakes can easily occur.

To avoid over-treating individual cows, only take four tubes to each cow and use the same order to treat the quarters e.g. left back, right back, left front, right front.

If different treatments are being applied to different batches of cows, draft out and group the cows the day before, according to treatment approach.

This way, all cows in a particular group can be treated in the same way.

“Deciding which cows to treat with what dry cow option is a key part of working with your vet towards improving your bottom line.” cows in batches over a few days, so the task is more manageable e.g. last two to three rows over three or four days. Ensure treated cows are well marked and kept separate from the milking herd.

Work on the basis that one person can handle about 20 cows per hour and that extra people may be required to restrain cows, especially if cows are not used to having their teats handled.

2. Ensure strict hygiene is used To avoid introducing bacteria into the teat, each teat end must be thoroughly cleaned with a cotton wool ball soaked in 70% meths or teat wipes prior to insertion of the treatment tube. When treating all four teats, clean teats furthest from you first, before nearer teats. To avoid accidentally contaminating previously disinfected teats, treat nearest teats before far teats.

Make sure that tubes stay clean and dry before use. Some people find it helpful to warm tubes (especially teat sealants) before use. If so, place them in the hot water cupboard overnight or place the bucket of tubes inside

4. Apply MRS T The steps in MRS T (mark, record, separate and treat) can also be applied to DCT, after the cow’s last milking.

Mark cows that are dried off early and have received DCT The risk of inhibitory grades increases markedly for herds where cows are treated with DCT prior to the rest of the herd being dried off. Mark these cows with a different colour from the mastitis treatment system, spray them copiously (tails, legs and rump!) and load them into the electronic system, if available, to ensure they don’t get milked by mistake. Re-mark cows every two weeks as the marks fade.

5. Record details of all cows being treated with DCT Make sure that paper and electronic records are updated promptly. If still milking other cows, a list of early DCT-treated cows on the farm dairy whiteboard will help reduce the chance of cups being put on a DCT-treated cow.

Separate out cows to be treated with DCT When drying off batches of cows, don’t treat cows with DCT whilst still milk-

ing other cows. Wait until milking is finished, the pipe is out of the bulk tank and the milking cows have been shut away, before bringing the cows back into the dairy for treating with DCT. These DCT-treated cows should be wellmarked and grazed in a

different part of the farm for the next few weeks to avoid costly mistakes.

Treat only after thorough disinfecting of the teat end – see the easy-to-follow-guide below from DairyNZ’s SmartSAMM Healthy Udder illustrates the correct technique for

giving intramammary treatments to cows.

• Jane Lacy-Hulbert is DairyNZ senior scientist.

This article first appeared in Getting the Basics Right 2012 edition.

Jane Lacy-Hulbert

Dairy News september 25, 2012

48 // milk quality

Changing liners lifts milk quality UNLESS YOU try using

two sets of milking liners a year, you won’t know what you’re missing out on, milking rubberware maker Skellerup quotes Otorohanga farmer Bruce Collinson-Smith as saying.

He doubted the benefits of changing liners midseason, but did so and was pleased. “We notice immediate benefit in the speed of milking. Until you try it, you don’t realise what

a difference it makes,” the company quotes him as saying.

Changing all liners at 2500 milkings – the point at which they start to become a liability – is one way Collinson-Smith and his wife Carol have overhauled their milking process and milk quality in recent years. On one farm, they finished a season in the top 3% of herds for low somatic cell counts and

were grade-free for the entire lactation.

Working with their Skellerup area manager and PureMilk consultant and vet Steve Cranefield, the Collinson-Smiths overcame herd mastitis and poor milking performance for an estimated overall gain of $38,000 per farm.

Collinson-Smiths sharemilk two properties at Otorohanga, run-

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Changing milking liners regularly helps milk quality.

ning them as one business and milking a total of 1100 cows. They have five permanent staff and one reliever. Glenbervie Farm comprises 165 ha (eff) with a 44-bail rotary and produces 172,000kgMS. It is run as a partnership with Bruce’s father.

The Tihiroa Farm is 187ha (eff) with a 50-aside herringbone and produces 220,000kgMS. The Collinson-Smiths are 50/50 equity partners in this property.

The herd on the farm had a high SCC and buying those animals was part of their milk quality challenge. But it wasn’t the only issue. “Everything that could go wrong, was going wrong,” he recalls of their previous performance.

Mastitis would spike after Christmas, cows’ teats were getting damaged, they weren’t milking out properly and their

average SCC was 280290,000.

Changing from largebore round liners to VacPlus Squares when they were launched four years ago helped straight away, to the point where the Collinson-Smiths began using squares simultaneously in both dairies after a short trial, Skellerup reports. “We had just replaced all the liners, so we had to cut all of them out. But Skellerup helped us out. Otherwise it would have taken us 12 months to get the squares onto both farms.”

Milkout is cleaner and more consistent with the square liners; cow teat ends stopped changing colour and started holding their natural shape again, and milking became faster and more efficient.

Herd health improved, so did SCC. www.dairybestpractice. co.nz

Dairy News september 25, 2012

machinery & products // 49

Generator gives flick to many problems tony hopkinson

DURING LONG elec-

tric power outages due to storms, snow damage and fallen trees, dairy farmers can suffer. Cows need milking regularly even if milk has to be tipped out because tankers cannot gain access.

Corkill Systems Ltd can now supply three sizes of portable electric generators (three point linkage mounted) for pressing quickly into service. They can run a whole dairy shed – milking plant, rotary platforms, lights, vat chillers, wash-down pumps and effluent disposal systems.

“All models need a tractor with a 1000rpm PTO to give a more even and

steady supply of electricity,” says the sales manager for Corkill Systems Ltd, Vern Coxhead.

He notes the generators have no gearboxes or belts, minimising power needs and helping to

ating. They are mounted on steel frames built in New Zealand and are rated to run at full load for extended hours.

Three sizes are available: 37.5kva for up to 40 sets of cups, 62.5kva for

“These generators are better constructed and are built to last and will handle all the electronics in today’s modern dairies.” – Vern Coxhead keep prices down. They have cast-iron flywheels that absorb any sudden changes when demand suddenly increases or drops.

Coxhead stresses the generators are cast iron, not aluminium, to better dissipate heat when oper-

Connection at switchboard for lead from generator.

up to 60 sets of cups, and 93.5kva for big sheds. All come with supply cables and power outlets made to order. The farmer arranges the power inlet and switching at the switchboard. Easily read dials and gauges at the front of the generator help the operator start and run the machine.

Says Coxhead, “These generators are better constructed and are built to last and will handle all the electronics in today’s modern dairies.”

Recent buyers of a 62.5kva model are Cam-

eron and Johno Arden, lower order sharemilkers for their parents Shane and Cathy Arden at Te Kiri, near Opunake.

They shared a generator with an uncle who farmed nearby but when he bought another farm they decided to buy their own. “Last season we had an outage for two days due to snow – unusual for this area – and we had 400 cows milking,” said Cameron.

(He featured in Dairy News when he won an innovation award at National Fieldays 2008 for a calf feeder. “I have a Mark II version but further development is on hold at the moment.”)

The Arden farm is 216ha flat to rolling and “grows rocks like nowhere else in NZ”. Rainfall is 1525mm and is well spread.

The farm is well raced and they milk 600 cross-bred cows through a 40-bail rotary with a Waikato milking plant. They rear 130 replacements each year and later 80 are grazed off and 50 are kept

Cameron Ardern.

on the property.

When using the generator the inlet port is switched off until it is at the correct output and then switched on.

This prevents damage to motors when not enough power is being delivered.

At the end of use power is switched off before the generator is slowed down and stopped.

The Ardens had a single phase power outlet installed to operate a small welder, angle grinder and the like. The have a 100hp New Holland tractor with a 1000rpm PTO.

Dials at front for driver to view when bringing up to power.

Tel. 0800 10 7006 www.corkillsystems. co.nz

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Dairy News september 25, 2012

50 // machinery & products

Mats stop cow falls MICHAEL AND Judi Driscole solved a major problem on their 100ha Palmerston North farm with the use of Agrimat from Numat.

“It’s wonderful, it’s fabulous stuff,” says Driscole. “We got a small 17-bail rotary built in 1972 and with the surface worn down we found the cows were slipping and falling off the platform.

“Since we’ve introduced this matting the cows have been a lot less stressed because they don’t slip as much.”

Occasionally a heifer in his 100cow herd still loses its footing but is able to regain it straight away.

“Hard hoofs on slippery steel, particularly in the summer when the hoofs are really hard, was getting to be a real problem,” says Driscole.

“Since we’ve introduced this matting it has been wonderful. The cows seem less stressed and it’s less stressful on myself and my staff.”

Agrimat, chosen because of the depth and quality of its rubber, was

Politics spark bigger feed mixer GERMAN

Agrimat helps keep cows steady on milking platforms.

laid in December 2011.

Driscole says lameness has reduced and, possibly, milk production has increased.

Because of its benefits, he says the cost of Agrimat is justified. “Farm management is easier because the cows do not slip getting on and off

the turnstile.”

However, because the matting is laid only on the turnstile, he doesn’t use Agrimat for standing off cows in the rain, and pasture damage is not a consideration with this arrangement.

Tel. 0800 686 122 www.numat.co.nz

SAFE AND

REUNIFICATION

sparked development of a feed mixer wagon to suit very large dairy farms fully feeding cows – such as is now common in New Zealand.

The BvL mixer wagon, launched here at National Fieldays by Webbline, on display was the model 20H 2S (20m3) with twin vertical augers, needing 100hp drive.

The company dates back to 1860 – a survivor, based in the former West Germany, that first made mixer wagons in 1978 for a growing market there. “With the coming down of the Berlin wall in 1989 a totally different market opened up to us,” said export sales manager Claus Mecklenburg. Whereas they had previously built machines for smaller farms in the west, they were suddenly presented with the chance to cater for large farms in the eastern part of the country.

They now make models up to 46m3 – stationary models with scoops for loading, double discharge chutes on each side and self propelled mixers.

BvL claims it is 10-15 years ahead in the technology.

All wagons use vertical augers, from the single auger v-Mix Agile model 3-3.5m3 model to the to the 46cu/m v-Mix Giant with three augers. The pictured model has two counter rotating augers which give a high degree of mixing including liquids, e.g. molasses, with low power requirements. The processing of large square and round bales is no problem.

The company has tried horizontal augers but is convinced vertical augers have the ability to best mix all material quickly and shift the feed to the outlets.

There is a variety of discharge doors at the side, left and right, at the rear or in the middle at the rear.

Depending on models they can be fitted with conveyor belts to get reach to feed troughs.

The patented door covers protect humans and animals and can be adjusted to alter the discharge flow.

Tel. 0800 932 254 www.webbline.co.nz

STRONG

Claus Mecklenburg, export sales manager at BvL Group and twin augers (inset).

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When it comes to handling the Classic Hoof Handler is proving to be the safe and strong chioce.

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Dairy News september 25, 2012

machinery & products // 51

With its red tines and rams axially aligned with the loader’s arms, the BMS unit offers optimum visibility.

Multipurpose bucket pours out more power, capacity GREATER CAPACITY and versatility

are claimed for a new MX multipurpose bucket sold by CB Norwood.

The MX BMS comes in six new widths: 1.40m, 1.60m, 1.80m, 2.00m, 2.25m and 2.45m. Capacity has “leapt” from 800L to 1450L depending on width – a 20% increase on the previous model.

Norwood says it has a wide grab opening enabling it to grip all types of materials including round bales. “The grab’s linkage means material can be gripped against a wall without its tines touching the wall.

Its width is always less than the bucket’s, practical when scraping near a wall. The flat base of the bucket bottom guarantees tool stability during digging or levelling work.”

Red tines make for better visibility at work: users can see exactly where they spike.

The linkage rams are thoughtfully

Its large grab opening enables all types of materials, including round bales, to be picked up.

placed in relation to the centre of the bucket, axially aligned with the loader arms, providing the driver with a clear operating view, Norwood says. “And the bucket’s rectangular shape is a simple, effective visual indicator to ensure a horizontal level during operation.”

The fully reinforced bottom of the MX BMS gives a long service life. Pads under the bucket, and large hitch connectors correctly positioned along the width, give the body optimum rigidity. And the bucket’s upper profile, with a heavy section, prevents twisting.

Large V guides make for fast hitching.

Absence of internal supports makes cleaning easier and faster.

The MX BMS unit is available in a welded MX hitch version or welded Euro hitch version.

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

Dairy News september 25, 2012

52 // machinery & products

Smartphone weather tailored to farming A NEW free smartphone app –

‘Farming weather forecast and services by New Holland Agriculture’ – is believed to be the first such offer to farmers.

It is distinct from purely productbased apps now on sale, and is “comprehensive”, the company says. The

For work in highly volatile climates, or with unpredictable weather swings, alerts can be sent to a smartphone ‘NH weather’ app, optimised for iPhones and downloadable from the Apple store, is also available for Android smartphones.

“Each morning… farmers and contractors will consult their personalised application to confirm or modify their day’s plans.” Information available includes 24 hour to long range forecasting, industry news and easy contact with a local dealer.

The app is said to provide “exceptionally accurate local forecasts”.

Data is drawn from 71,000 weather stations and distributed across the world by geo-location technology;

data is received and analysed from the closest sub-station.

Data include actual and ‘feelslike’ temperature, pressure, and wind speed and direction.

Evaporation rate is available, and historical data can be accessed to plot trends and manage seasonal working patterns.

Seven day forecasting is intended to help professional contractors plan efficiently – when best to sow, harvest or fertilise.

Frequently vis- Farmers can rely on the smartphone app each ited sites can be morning for the weather forecast. storms during harvest season. stored and recalled, an Users will also be able to peruse invaluable feature for contractors that operate over vast areas, in order the latest agricultural news from to optimise weather sensitive tasks industry news media, forums and during busy harvesting or foraging blogs and from New Holland; the news feed is continually updated. A windows.

For work in highly volatile cli- dealer locator has been integrated mates, or with unpredictable into the package. weather swings, alerts can be sent Tel. 06 356 4920 to a smartphone, warning of, e.g. www.newholland.co.nz

Dust-free disc mill cuts better feed cheaply GARETH GILLATT

A PPP Industries disc mill is proving an

economical way to supply more livestock feed with less waste, say the owners, Matt and Sarah Bolton, of Wairarapa.

Boltons run 1050 dairy cows, 150 beef cattle and 800 ewes on their 580ha property at Pahiatua. With 1000 cows being milked on a 280ha platform, a lot of grain and other supplements are a key component to the farm system to maintain high production. “I feed out to the milking cows for up to eight months of the year.”

Boltons until two seasons ago ran a paddock grass/maize silage/PKE feeding regime. Then came an opportunity to buy barley directly from the grower.

“Grass management is crucial on the farm and we focus on getting that right; supplements are added at times of grass deficits. We’ve been going here for 10 years without putting grain in so when

EASY PPP Industries disc mill.

SAFE

the opportunity came we wanted to be sure costs didn’t go too high.”

While farm working expenses have grown a little since adding barley into the system they currently sit at $3.50– $3.60kgMS, well below the district average of $3.90kgMS according to DairyNZ. Bolton attributes this to the ability to store and process the grain himself. “If I didn’t have a mill I would have to get someone else to store and crush the feed which would cost close to an extra $80 a tonne.”

He buys about 400 t of barley in bulk, stores it 100 ton at a time in a silo then mills it and puts it into a smaller silo for when extra feed is needed, then feeds it to the cows during milking via an in-shed feeder.

The extra supplement has enabled the farm to generate at least 1500kgMS a hectare – 200kgMS/ha more than at the same time during the previous seasons, Bolton says.

They first used a hammer mill but at PPP Industries’ suggestion switched to a disc mill because the hammer mill generated a lot of dust and didn’t process grain to a uniform size. “There was dust all through and around the farm dairy sheds.”

Now Boltons have no dust problem and feed is much more palatable for stock. “The disc mill is brilliant because every single grain that goes through it is cut to a uniform size, excellent for our cows and very digestible. If you’re going to use a higher cost input such as grains you might as well make it work for you.”

Processing costs are down: the disc mill uses 11kw/h to process 7 t of barley an hour compared to 20kw/h for the hammer mill Tel. 0800 901 902 www.pppindustries.co.nz

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Dairy News september 25, 2012

machinery & products // 53

Tractor about to start grand tour KUBOTA WILL in Octo-

“unparalleled operator comfort”. And the cab has been raised to give a higher vantage point.

A new roof panel allows better loader visibility and admits more light into the cab. This panel adjusts

ber begin showing its new Grand X tractor to farmers at Kubota Drive Days nationwide.

The promotion will mix drive-day and evening events for maximum

utor says.

Control technology on the tractor, relatively new from this maker, includes electronic management system (K-EMS) and the

The new Kubota Grand X tractor is said to have the largest cab in this horsepower bracket.

24/24 Intelli-shift transmission with three ranges of eight powershift gears, coupled with Kubota’s Work Mode, Auto Mode and Work Kruise.

0800 Molasses

The MGX series has classleading levels of power, reliability and performance. exposure to “what the world is raving about,” the distributor says. “Inspired

by Kubota’s 50-year pedigree… the MGX series has… class-leading levels of power, reliability and performance.”

The machine is said to have the largest cab in this horsepower bracket. The B pillar has been removed to allow better access to the cab with boasts 4.2m3 of space; “the nearest opposition cab is 3.93m3.”

Cab redesign has also better positioned the controls, ergonomically, for

to allow fresh air flow. An updated and more comfortable instructor’s seat does not cramp cab space, folded or in use.

An updated dash and side digital LCD panel centrally displays all data.

Grand X series tractors are interim Tier 4 compliant. Fuel economy benefits from a common rail system, exhaust gas recirculation and a diesel particulate filter. These also help minimise engine noise and emissions without compromising power and efficiency, the distrib-

• independent importer

direct to “You” the farmer • molasses sales NEW ZEALAND WIDE • importing moLAssEs into New Zealand since 2003 • NZ oWNED fAmILY busINEss

moves and works better KUBOTA’S PATENTED Bi-Speed turn and bevel-gear front axle are said to optimise manoeuvrability and handling in many conditions.

The MGX series has among the highest crop clearances in its class and optional factory front suspension on the M135GX assures operators of “an even smoother ride for both front end loader work and work on rough terrain”.

Tel. 0800 KUBOTA www.kubota.co.nz

Kubota drive days will showcase the new machine.

DistributeD from 7 Depots nationwiDe

network of sales representatives new ZealanD wiDe to contact a rep near you...

Freephone: 0800 Molasses (0800 66527737)

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Dairy News september 25, 2012

54 // machinery & products

Italian accessories add touch of style MOTOR ACCESSORY

seller Griffiths Equipment now offers Momo car seat covers and floor mats to complement the Momo steering wheel and gear knob.

The famous Italian auto brand adds a touch of style and they’re affordable, the company says.

“Momo quality and style, and thanks to the favourable exchange rate, we have these car seat covers at unheard-of prices,” says Bruce Walker, sales manager. They come in two styles at $60 a pair –

acrylic foam-backed material with the Momo logo in yellow stitching.

The seat covers fit the bucket seats found in most car models, including the headrests.

Momo floor mats (three styles) come in sets of four – two for the front footwells and two for the rear passengers. Two are in hard-wearing black carpet trimmed with the yellow Momo logo in differing formats, depending on the style chosen.

The third set, in washable black rubber, is for SUVs

The Abbey AP900 multi effluent spreader.

and utes, with Momo logo and yellow piping around the edges.

The mats in carpet cost $46 for a set of four, and the rubber set $78.20.

Momo was established

in Italy in the 1960s, its fortunes growing with the success of the Ferrari racing team, to which it supplied products, starting with its famous steering wheels.

Labels match feed bag contents A NEW blend mill commissioned at

Hamilton by Ingham Feeds & Nutrition enables this animal feed maker to guarantee the specifications of its mixes – “with its hand on its heart, pledging that what it says on the label matches its contents”. The $2.5 million plant makes five ‘Acu’ feeds.

Ingham’s TopCow mixes such as Maxum generally required these pelletised compound feeds to be dispensed in individual bowls to cows in the milking shed. But feed mill manager Oscar Stevens says blends such as Thrifty, Energy and Summer can be fed in a paddock with silage or while the cows are on a feed pad.

He describes the range is a “valuefor-money option… providing dairy cow nutrition to match their genetic potential.”

“Pastures alone simply can’t provide the quality and quantity of feed required to put more milk in the vat.

These new blends will help… produce more milk solids and improve cows’ overall health.” Stevens notes product consistency and quality of blend.

The new blend mill is beside Ingham’s compound feed plant. Self-

Ingham plant.

No clogging with this spreader tony hopkinson

DEMONSTRATIONS OF the Abbey

loading ingredient bins, computerised weighing scales (accurate to 0.4%) and computer-controlled systems are purpose-designed around a relatively standard mixing bowl and paddles.

The blending plant can mix a one tonne batch every two minutes, or 30 tonnes an hour. If required, the plant is also capable of 24/7 operation; then it could make 5000 t blended mixes a week.

Thorough mixing precludes hot spots or cold spots in the mix, Stevens says, unlike, for example, the technique of front-loader filling a 5-10 t mixer, risking uneven combination of ingredients such as grain meal, palm

kernel extract, Rumensin and zinc.

“Such mixes – often cheap and perhaps nasty – can cause an individual cow to receive none of a particular ingredient. Conversely, another cow might [get much] more of a component than it should.”

Consistency of inputs is part of Inghams’ philosophy: raw ingredients are measured by SGS (international verification company) and Ingham’s Waitoa laboratory before blending begins, as well as when the final mix has been created.

The blends are formulated by Tasmanian animal nutrition consultant Pip Gale.

AP900 multi effluent spreader by agent Waikato Tractors have shown the machine covering steeper hillsides by throwing material from above downwards or from below upwards. (The New Zealand distributor is Farmgard.)

Salesman John Metcalfe demonstrated the spreader handling material including liquid cow effluent, drier effluent that had been stock piled, horse manure with stable cleanings and fowl manure from a local poultry farm. The AP900’s auger and discharge rotor combination resists clogging.

Increasing use of feed pads, especially with larger herds, is bringing increases in the volume of heavier material. And the use of separators needs machines such as the AP 900 to dispose of the material.

It has two augers to bring the material to the discharge chute for even flow and the discharge rotor is overshot, spinning the material out the top of the rotor.

“This is important as the material has less chance of jamming as it thrown up on contact rather than going down, and extraneous material perhaps jamming,” says Farmgarde area manager John Macintyre.

The machine is watertight so can carry thick liquid material and the steeply tapered tub with the large diameter auger shifts material to the outlet near the front section, transferring the weight to the tractor draw bar.

The rotors have hardened reversible tips for better fragmentation of material and a spreading width of up to 20m. The hydraulically operated opening door has high clearance and can also be used to control flow of material.

“The single axle on large diameter 23.1R26 tyres is ideal for accessing loading areas and getting in and out of paddocks,” McIntyre says.

The machine needs 100hp; higher power is recommended for rolling contours.

Tel. 09 275 5555 www.farmgard.co.nz

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NEW ZEALAND’S

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e t a L

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Australian Dairy Farmers are saying with a Disc Mill “we produce more milk from less grain”

THE WORLD’S MYSTERY CREEK Taranaki Territory Manager DAIRY PAVILLON SITE PD24 BEST & PD26 SOLID EFFLUENT Chris Collier 027 666 6221 Taranaki Territory Manager SEPARATOR Chris Collier 027 666 6221 E: chris@pppindustries.co.nz Over 4000 systems sold E:chris@pppindustries.co.nz world wide in NZ for over 17 years

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