FrieslandCampina’s stake in Synlait lauded. Page 3
Fonterra top brass revamp
Jacqueline Chow to drive marketing, innovation. Page 26
time to roll the tyres away
Better way to hold silage stack covers. Page 47 july 23, 2013
Issue 295 // www.dairynews.co.nz
Is the price right? TAF has introduced an aberration to the farm real estate market. Some farmers want a higher price for their farms as the share price soars. PAGE 5
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Dairy News july 23, 2013
news // 3
European co-op’s stake in Synlait lauded ANDREW SWALLOW andrews@ruralnews.co.nz
SYNLAIT’S SUCCESS securing a multimillion
Storm hits as calving starts. PG.14
Okura’s legacy lives on. PG.16
dollar investment in its Synlait Milk subsidiary by European dairy cooperative FrieslandCampina (FC) is an accolade for the Canterbury processor, says a leading independent dairy marketer. Meanwhile Federated Farmers says the move will shake-up the New Zealand industry. Global Dairy Network director John Shaskey told Dairy News he sees it “as a reasonably significant decision for FrieslandCampina to take a stake,” following the Dutch cooperative’s $24m buy-in to Synlait’s IPO, giving it a 7.5% share of the Dunsandel-based processor. “They’re a very good company and for them to invest in Synlait will be seen by many people in the industry as a vote of confidence in Synlait.” The investment differs from the many overseas investments FC already has in that Synlait’s business starts at the farmgate, whereas most of the others are at the marketing and branding end of the supply chain, notes Shaskey. From Synlait’s perspective, the investment is
a good fit as FC is strong in Asia, Africa and the Middle East, he adds. “They have a very strong market presence in the segments where Synlait wants to be strong. Of course, taking a stake in a company doesn’t necessarily mean that’s going to flow through to taking its product, but it suggests that’s a possibility.” Shaskey acknowledges the growing amount of overseas investment in the New Zealand industry is a threat to domestic dairy farmers in that it limits their ability to share in the value chain beyond the farm gate but, equally, it provides capital to fund industry expansion here which otherwise wouldn’t be possible, he points out. “If New Zealand investors aren’t prepared to come up with the capital, that capital has to come from somewhere to allow the industry to grow.” Federated Farmers’ dairy chairman Willy Leferink says FC’s financial investment, at $24m, is modest given it has similar revenue to Fonterra, but the message is powerful. “Clearly there is an underlying desire to get exposure to New Zealand liquid milk… [This] cornerstone shareholding is, to us, more like a beachhead.” The move may spark a discussion as to how
About FrieslandCampina Feed trailer raises efficiency, cuts waste. PG.50
News �����������������������������������������������������3-23 Opinion �������������������������������������������� 24-25 Agribusiness ���������������������������� 26-28 Management ������������������������������30-36 Animal Health ��������������������������37-40 calving ��������������������������������������������42-46 Machinery & Products �������������������������������������� 47-50
ACCORDING TO FrieslandCampina’s website, annual revenue of €10.3billion in 2012 makes it one of the world’s five largest dairy companies. Operating profit was €482m. Head office is Amersfoort, Netherlands, and it has 14,132 member farmers in the Netherlands, Germany and Belgium. It has offices in 28 countries, employs 19,946 people, and sends product to at least 100 countries. Its four business groups are: consumer products Europe; consumer products international; cheese, butter and milkpowder; ingredients. Products include
dairy-based drinks, infant and toddler foods, cheese, butter, cream, desserts and dairy-based ingredients. It’s Route 2020 strategy aims to grow the company, maximising value of all milk produced by member dairy farmers. Goals include: increased share of addedvalue and branded product sales volume; further operating profit growth; substantially higher performance premium and higher distribution of member bonds for the member dairy farmers; halving job-related accidents within five years; climate-neutral growth throughout the entire chain from cow to consumer.
domestic cooperatives respond, “Fonterra especially,” he says, given the growing concerns about shareprice-driven supply loss. “To [Feds] there has to be a change here.” Leferink also notes FC joins China’s Bright Dairy (39%) and Japanese/Australian Mitsui John Shaskey says the (8.4%) as shareholders investment is a vote in Synlait. “The prize is of confidence in Synlait. clearly Asia.” No other parties appear to have secured greater than a 5% stake in Synlait in the IPO, the threshold for disclosure under NZX rules. The IPO aimed to raise $75m of new capital, which, at the final price of $2.20/share, indicates just over 34m of new shares issued. Synlait says $2.20/share gives it a market capitalisation of $322m. A sell-down of 19m existing shares was also part of the offer, which was reported to be oversubscribed. Synlait managing director and chief executive John Penno says he’s not overly concerned what price the shares open at when they start trading on the NZX today [July 23]. “We’re focussed on building value in the company for the long-run so what it does in the first few days won’t worry us too much,” he told Dairy News. Synlait Milk chairman Graeme Milne says FC’s investment is an endorsement of Synlait’s operations and growth ambitions (see panel). “Our working relationship with FrieslandCampina has developed over the years and they have become a valued customer.” Friesland Campina Ingredients’ chief operating officer Roelof Joosten says Synlait Milk is a supplier of high quality raw materials and a business FC has developed “a close working relationship with.” “With this investment, we are supporting our supply of raw materials and also the growth of Synlait Milk,” Joosten says. @dairy_news
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Dairy News july 23, 2013
4 // news
Flurry of price cuts as China launches probe
Synlait, suppliers in dispute over transport costs THE RISKS section of the IPO prospec-
PAM TIPA pamelat@ruralnews.co.nz
FONTERRA HAS slashed by 9% the price for its Anmum maternal health products sold in China following a probe by Chinese authorities into infant formula pricing. Major international dairy companies have cut infant formula prices in China by up to 20% after the China National Development and Reform Commission (NDRC) launched a probe into price fixing. It has said infant formula prices have jumped 30% since 2008. Fonterra does not supply infant formula to China; its Anmum products are targeted at pregnant and breastfeeding mothers, although it has a product for children over one year of age. The 9% price reduction will apply to Anmum Materna and be effective from August 1. “We are committed to providing high quality, premium imported products to Chinese consumers and we are also committed to being an integral part of and long-term partner to the Chinese dairy industry,”
says Kelvin Wickham, president of include Abbott Laboratories, Nestle, Fonterra Greater China and India in Danone, Royal FrieslandCampina and Mead Johnson Nutrition. a statement. Netherlands’s FrieslandCampina The Wall Street Journal earlier reported the NDRC’s probe extended has dropped the prices on its range of all Friso products by to Fonterra and that 5%. It says the company indicated the Chinese will reinforce compliauthorities were lookance with pricing and ing at the dairy indusanti-trust regulations, try beyond just infant adjust contractual formula. A Fonterra terms to emphasise spokeswoman told the adherence to China’s journal the Chinese Anti-Monopoly Law, government is “reviewenhance its Code of ing a wide range of Conduct and provide consumer businesses comprehensive antiin the Chinese dairy Kelvin Wickham trust training based on industry” and that FonChinese laws. terra wasn’t being singled out. Wyeth Nutrition, the infant forDairy News asked Fonterra what questions were being asked by the mula company Nestle bought last Chinese investigation, and possi- year, said in a statement it had been ble ongoing effects on the milk price actively cooperating with the NDRC and the industry. Fonterra replied it and was responding by cutting its had nothing further to say other than prices and improving sales and marketing practices. Wickham’s statement. Mead Johnson Nutrition says it Meanwhile all international companies in the Chinese infant formula has launched “a self-review to ensure investigation have announced they compliance with the antitrust laws of are cooperating fully and have cut China”. It has reduced the prices of its their prices, some up to 20%. They main products from 7% to 15%.
tus reveals Synlait is in dispute with some South Canterbury suppliers who were signed for three seasons in early 2011 when Synlait bought Oceania’s contracts with the farmers. Those contracts stipulated a price for the first two season’s supply but the third season’s supply, 2013-14, was unpriced. Synlait managing director John Penno told Dairy News the price formula being applied is Synlait’s standard formula which includes a transportation charge for farms outside a roughly 80km radius. The South Canterbury suppliers are up to 200km away. The IPO offer states Synlait’s supply terms include a transportation charge for farms north of the Ashley River and, as in the case of the Oceania group, south of Timaru, which is about 120km from the factory. Under ‘risks’ it says a new price formula and distance surcharge has been introduced to “certain suppliers whose contracts were novated to us from Oceania Dairy Limited…. Some of those suppliers have notified us that they regard any imposition of a distance surcharge on them as a breach of contract. We believe in our entitlement to introduce the distance surcharge. However,
What’s the IPO funding? Synlait says proceeds of the IPO will repay existing debt facilities and enable financing of the following growth initiatives:
Expected Commissioning Date
Expected Total Cost
May 2013
January 2014
$15.1m
August 2013
August 2014
$27.5m
Dry store
August 2013
January 2014
$11.8m
Quality testing laboratory
August 2013
March 2014
$3.9m
April 2014
August 2015
$110m
August 2014
May 2015
$15m
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this may ultimately need to be determined by a court.” Oceania Dairy was the company set up in 2009 with a view to building a processing plant at Glenavy. It subsequently sold its building consents and right to purchase land at Glenavy to Mongolia-based Yili which, following Overseas Investment Office clearance, started building at Glenavy in April (Dairy News, April 16). Expressions of interest to supply the new factory, which is expected to start processing in time for the 2014-15 season, are reportedly strong, with some saying “it’s full already.” However, as others have pointed out, there’s a long way to go between an expression of interest and a signed supply contract. Besides the Synlait distance surcharge situation driving supply to Yili, and the obvious attraction of no share requirement, for some dairy farmers in the region the legacy of Fonterra’s acquisition of nearby New Zealand Dairies, at Studholme, is another driver. When NZDL went into receivership in May 2012 it left suppliers unpaid for several weeks. Fonterra bought the formerly Russian owned plant.
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Dairy News july 23, 2013
news // 5
TAF dilemma over farm sales sudesh kissun sudeshk@ruralnews.co.nz
EIGHT MONTHS after TAF’s launch,
the real estate industry is still coming to grips with its effects on farm sales. The public listing of Fonterra shares has introduced an aberration to the farm real estate market. The sale of farms owned by Fonterra shareholders is no longer a straightforward sale of farm assets, says Gibson Barron, owner L J Hooker Matamata. He says Fonterra shareholders are facing a dilemma: whether to sell their farms with or without shares. As the share price fluctuates, some vendors want more money to match the high share price. This is also causing confusion among buyers, he says. TAF was launched in November last year a with share price of $5.50. Last week the price hovered about $7.38/ share. In May the price peaked at $8.05/ share. Barron says some farmers want higher prices for their farms because the share price is higher. He points out that a farm valued at $5million would have three value components: land, improvements and Fonterra shares. The higher value of shares doesn’t necessarily push the farm value up; instead it pulls down the value of land
and improvements such as the milking shed, he says. “For the vendor, the question is whether he sells the farm shares-inclusive. He has one eye on the NZX where the share price is trading almost $2 higher than the launch price,” Barron told Dairy News. “The purchaser is also confused about what’s the best thing to do as the share price fluctuates.” Barron, whose agency handles a substantial number of dairy farm sales in and around Matamata, says some are sold with and some without shares, depending on the wishes of the vendor. He says it will take several years for the market to adjust itself to TAF. In the meantime, both the sellers and buyers are getting more professional advice.
The job of real estate agents has also become more specialised. “For the real estate industry, it means being up to speed with TAF and the choices it presents for the vendors and purchasers. We advise our clients to seek professional advice. “Our job has certainly become more specialised. Dairy farm sales can no longer be done on the back of cigarette packets. Fifteen years ago, every farm sale had two pages of clauses, today there are 15 pages of special clauses.” Rural property sales agent Rex Butterworth, who has 20 years experience in the industry, says the market faced a similar situation when Fonterra was formed 12 years ago. “The market took 12 months to
adjust back then, it’s taking a bit longer this time.” Fonterra’s TAF general manager Aaron Jenkins believes the real estate market is getting used to the share trading scheme. He has spoken to the Real Estate Institute of New Zealand
(REINZ) meetings in recent months. Real estate agencies are on a rural professional database that gets regular advice from Fonterra. “No specific issue has been raised with me and I think everyone is getting used to it,” Jenkins told Dairy News.
flexibility for vendors, buyers FONTERRA’S TAF general manager Aaron Jenkins says the share trading scheme offers flexibility to sellers and buyers. Pre-TAF, any Fonterra shareholder who stopped milking cows could no longer hold shares. Under TAF, shareholders have three years to offload their shares, on the condition one third of shares are sold each year. For the buyer, he has three years to be fully shared up, again buying at least one-third of shares every year. For farmers on contract supply, TAF allows six years to be fully shared up, with no obligation to buy shares during the first three years and one-third every year for the next three years. Jenkins says there is more flexibility than before.
Gibson Barron (left), owner LJ Hooker, Matamata, and rural property sales agent Rex Butterworth say TAF has added a new dimension to farm sales.
in brief Call to kill with 1080 PARLIAMENTARY COMMISSIONER for the Environment Dr Jan Wright is reiterating her call for greater use of 1080 for killing pests. Her comments update recommendations she made in 2011. Wright says time is running out for native species on the mainland. “Three predators are inflicting enormous damage on our native birds and plants: possums, rats, and stoats. The only way we can control them over large areas is to use 1080. We are lucky to have it. “When I released my report two years ago I called for greater use of 1080 because I was concerned about the future of kiwi and other native birds.
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Dairy News july 23, 2013
6 // news Landcorp’s farm in the Manawatu was one of the few North Island farms spared by the drought.
SOE ‘blocked’ farm sale to Maori trust PETER BURKE peterb@ruralnews.co.nz
LANDCORP ADVISED Shanghai Pengxin to reject an offer by a central North Island Maori trust which recently bid to buy two former Crafar dairy farms near Te Kuiti, the Chinese company says. Terry Lee, who represents Shanghai Pengxin’s interests in New Zealand, told Dairy News that Landcorp, which advises his company on sale or purchase of land, told him to reject the latest offer because it was well below new valuations of the two farms. These were previously owned by Allan Crafar but were sold to the Chinese by the receivers of the Crafar farms. Te Hape B Trust has several times tried unsuccessfully to buy the farms, but trust chairman Hardie Pene says when they were specifically invited by Shanghai Pengxin to put in another bid he was hopeful a deal could be done. But Lee denied Shanghai Pengxin “invited” Te Hape B Trust to put in an offer.
“After the farms in question had been acquired by Shanghai Pengxin, he said they were still keen to buy them so I told Hardie Pene I would give them one last chance to make an offer. “We gave them access to the farms so they could do due diligence and they made another offer but that offer was too low. We are not going to lose money by selling the farms to Hardie Pene.” The price Shanghai Pengxin paid for the 16 Cafar farms is not known publicly; the speculation is about $200 million. Lee will not reveal the recent independent valuation of the two farms Te Hape B Trust was trying to buy. But Pene showed Dairy News that their valuations, by independent valuer John Darragh, was $10.35 million for one farm and $12 million for the other. Assuming a total price paid by Shanghai Pengxin of $200 million divided by 16, the average price per farm would be $12.5 million. However this in no way reflects Shanghai Pengxin’s valuation. Lee says they entertained
another offer from Te Hape B Trust because they “felt they needed to keep good relations with iwi”. But this has incensed Pene who describes the whole process run by Shanghai Pengxin as “window dressing” and an “academic exercise”. He has previously told Dairy News that he agrees with Sir Henry van der Hayden’s comments to “not trust the Chinese”. Pene says he has no reason not to trust all Chinese – just Shanghai Pengxin. He says the rejection of the offer is a “kick in the guts” for his people who have ancestral ties to the land in question. Ironically, Shanghai Pengxin recently signed a joint venture with the Maori dairy company Miraka to produce UHT milk for export to China. One of Miraka’s major partners is Wairarapa Moana which has dairy farms in the central North Island but the milk for the UHT will come from some of the former Crafar farms not managed by Landcorp. @dairy_news facebook.com/dairynews
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Tough season for Landcorp farms peter burke
ONE OF the country’s biggest dairy farmers, Landcorp, has revealed the drought has hit it in the pocket with production down by 4.4% on last year. But Mark Julian, in charge of the 46 dairy farms Landcorp has from Northland to South Otago, told Dairy News it could have been worse. He says it started with a colderthan-normal spring which slowed production, but by January things had picked and they were looking at record production. “But then we had the prolonged drought and we lost production across all our farms. At one stage it was looking as if we’d be down by 8% but as it turned out it was 4%. In the central North Island where we milk 7770 cows we took an 18% hit in production compared with the year before and that gives you an idea of where that feed was missing. That was the place we were hard-
est hit.” Julian says other places they took a hit was in the Bay of Plenty with production down by 9%. “Down the southern end of the West Coast around Lake Brunner where we’ve got 4500 cows milking they were down by up to 7% as well on last year’s production. They had a hard year before that so in a normal year it could have been a 10% drop in production. “Around the country it was funny the way the drought played out. In Northland and on the Hauraki Plains production was down 6-7%.” Southern Manawatu was one of the few places relatively unaffected by the drought, Julian says. He points to the cluster of dairy farms Landcorp runs adjacent to the lower reaches of the Manawatu River near Foxton. These did not suffer the prolonged drought of other farms and production was good. He says their irrigated farmers in Canterbury were affected when
river levels dropped and irrigation schemes were shut off or restricted. With calving just a week or so away, Julian says overall Landcorp cows are “in reasonably good condition”. “They’d be in 4.7 to 4.8 BCS against a target of 5.0 for calving. We are slightly down on condition but we are not too far off where we should be. Probably the bigger thing is the feed on hand is down quite a bit; we haven’t got the silage we need in a lot of places we had it last year,” he says. According to Julian, there is a “little bit of nervousness” going into the spring in terms of having enough feed. He says they’ll probably have to buy in a bit more feed if the weather turns bad. But he notes that pasture covers have come back quite well across most the country and there’s been good growth following the drought. @dairy_news facebook.com/dairynews
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Dairy News july 23, 2013
news // 7
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Westland launched new branding to raise its profile and credibility in the Asian market.
Westland launches infant products into China member based in China. Jian xin (Harry) Wang has been appointed being an exporter of dairy ingredinutritional development manager – ents to being a supplier of high-end China, within Westland’s sales and finished products when it launched marketing team, based in Shangits Westpro Nutrition infant range in hai. Until now the company serviced China last week. China by regular visits by New ZeaThe products made at Westland’s land staff, working with local connew $28 million Hokitika plant are tacts and with the support of New for three stages: infant, follow-on and Zealand’s in-China services such as growing up powders. It is Westland’s NZTE. first foray into this category. “This has been successful for us The brand launch was attended and our sales to China have grown by at least 100 guests from current considerably,” says and prospective customers’ Quin. “But our stratecompanies, the Ministry of gic move into high-end Foreign Affairs and Trade, nutritional products, and New Zealand Trade and especially infant forEnterprise. mula, means we need Chief executive Rod Quin to enter a new phase of says it is a milestone in Westour relationship with land’s strategic move to be a China. Harry’s appointproducer of added-value ment will, we believe, nutritional products and be the first of several reduce the company’s reliChina placements as our ance on bulk ingredients. nutritionals sales there “The opportunities for expand. expansion are significant Westland’s new Westport Nutrition infant range it “Harry will be critical especially in China. We have launched into China last week. in building relationships experienced extraordinary growth in the last few years, but the within a short while of invitations with new and existing customers in the nutritional segment,” Quin says. disadvantage of being in the bulk going out.” Westland also used the Chinese “His on-the-ground knowledge and commodities market is that it is highly variable, vulnerable to market influ- launch to introduce a new corporate connectivity to China will be a valuences over which we have little con- branding based on a ‘Genuine New able asset to our development in Zealand Dairy’ theme, designed to what is currently the most important, trol, and profit margins can be low. “As a smaller, more nimble raise Westland’s visibility and credi- changing and dynamic market for our nutritional business.” player in the global dairy scene, bility in the Asian market. Wang comes to Westland with A seven-point approach, the new the nutritional products market is better suited to us. It gives us branding uses ‘genuine’ to focus extensive experience gained from more opportunities to show off our customers on Westland’s history, DSM Nutritional Products, where he technical expertise, flexibility and cooperative ownership, innovation, spent the past five years as the techproducts, quality and people – nical and marketing manager, and innovation. “It also means we are more able telling the history of the 76-year-old previous roles with Daqing Dairy, to have close relationships with our company and its journey to becoming Wondersun Dairy and Nutrica Nutricustomers where we can develop supplier of new and innovative tionals. He holds a bachelors degree in Food Science and Engineering products together. Nutritional products. Westland Milk Products has also from the Northeast Agriculture Uniproducts have a much higher profit potential, the promise of a more established its first permanent staff versity.
WESTLAND MILK moved from
stable income and better returns for our shareholders.” Quin says the Shanghai launch was important to demonstrate to key Chinese officials and businesses Westland’s commitment to the Chinese market. The function would also help reinforce Westland’s credibility as a genuine manufacturer of high quality nutritional products. “Interest was high,” Quin says. “Our function was fully subscribed
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Dairy News july 23, 2013
8 // news
Small calves taken in stride ANDREW SWALLOW andrews@ruralnews.co.nz
FEW FARMS have acted to avoid
small calf syndrome (SCS) carrier bulls since the trait was identified and revealed by LIC in May, say breeding companies. CRV Ambreed last week revealed two more of its bulls are carriers, and subsidiary Liberty Genetics is waiting on test results this week. Meanwhile, as the new season’s crop of calves starts to hit the ground, LIC says there’s been little reaction in terms of bull choice for the coming mating season following its listing of carrier bulls (see panel) in May. “I’m sure the odd individual will have changed their order but there’s certainly not been a groundswell of change,” general manager of research and development, Richard Spelman, told Dairy News. That’s echoed by CRV Ambreed marketing manager Peter Berney. “The only bull that showed up initially was Blackout and since we put the notice out [about SCS] we’ve not seen any change
in use. But he’s not a high-use bull and typically Ambreed clients do not have high levels of the gene in their herds anyway.” Two more Ambreed bulls are now listed as SCS carriers: Phonic and Monty, which are on the firm’s InSire list. Blackout is on the Proven list. Berney says none of the bulls have been withdrawn because of the low prevalence of carriers in customers’ herds, and, by using Sire Match Protect, the risk of a carrier cow being mated to a carrier bull can be avoided. Carrier sires may also have niche traits which some breeders seek. The SireMatch service costs breeders recording with Ambreed 25c/cow extra, or 75c/cow extra for those recording with LIC’s Minda. “Most of our clients are nominated; they specify the teams of bull they use.” Liberty Genetics, which was bought by CRV Ambreed in May 2012 but is run as an independent operation of the parent, says it is waiting for DNA test results from LIC’s Genemark laboratory as to how many of its bulls are carriers. However, from parentage records, testing of LIC’s bulls and cases on farm,
one or two per 400 calves which LIC has been highlighting. “From what I can see for a straight Friesian herd of 400 cows there could be as many as ten or a dozen of these calves born this spring.” On the flip-side, herds with a high level of Jersey genetics will more than likely see none. Historically, incidence of calves exhibiting the trait – very short legs, stocky body, wide head and a relatively short nose – has probably been under reported, says Hayman. “Now the pendulum’s likely to swing the other way with every small calf being blamed on the gene.” Spelman says nationally they’re expecting 4000-6000 calves to be born exhibiting the trait this spring, out of some 4.5 million due to drop on dairy farms. At worst, a Friesian herd of 400 with 20% carrier cows that used carrier bulls for 30% of inseminations would produce 24 pregnancies at risk of carrying the gene, and, on average, only a quarter of those, ie six, would carry the double recessive and so exhibit the trait. Twelve would be carriers and six would be free of it.
any farmer that doesn’t they have a good idea which want to use a carrier bulls could be carriers, we will exclude them says Liberty’s sire develfrom their pack at no opment manager Dave cost.” Hayman. “We know Hayman is crita couple of our older ical of LIC’s hanbulls were carriers and dling of the trait’s we don’t expect them emergence and to find too many others subsequent commuin our older bulls.” nication but acknowlAs with Ambreed, those edges the problem known carriers were lowLIC faced with two use so Liberty’s clients’ of its most herds should have a low widely proincidence of carrimoted crossers. “Of our current Richard Spelman bred bulls bull teams, we expect – Checkpoint there will be no more than four carriers. We’re expecting test and Equinox – turning out to be carriresults this week then we’ll make a deci- ers. ”Checkpoint, in particular, boosts sion as to how we use those from there.” the BW of the crossbred team, and they Hayman hints Liberty’s policy may don’t have any other substitute that can differ from LIC’s or Ambreed’s, in come close to him.” He suspects incidence of the synthat carriers could be withdrawn from the market. “We have an obligation to drome, which only manifests itself in our bull breeders to get a proof for the one in four of the progeny when a carbulls, but we would prefer to do that rier bull is crossed with a carrier cow for a substitute, so if we can come to an owing to the gene being recessive, will, agreement we will try to eliminate them in some herds, be considerably higher [carriers]. We can certainly guarantee to than the industry average incidence of
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Dairy News july 23, 2013
10 // news
Tweak the water accord and we’ll sign – Westland WESTLAND MILK
is throwing its full support behind the new ‘Sustainable dairying: water accord’ (SDWA). The West Cost co-op is a ‘friend’ of the accord launched this month in Wellington but is not yet a signatory, as are the other dairy companies. But Westland chief executive Rod Quin, who attended the launch, says the co-op will sign after certain aspects of the accord are tweaked to reflect the extreme weather conditions on the West Coast. For example, he says the topography and high rainfall in the region made it difficult for Westland suppliers to meet fencing requirements spelt out in the accord. With some rivers flooding every
two to three months, permanent fencing was not viable on many farms. Quin says Westland was not trying to be the odd one out of the processors when it came to supporting the accord, “We fully support the initiatives outlined in the new accord. As soon we do some more work on the designs of the accord, we’ll put our signature to the accord,” he told Dairy News. Quin says the co-op has a good working relationship with the West Coast Regional Council. DairyNZ chief executive Tim Mackle says Westland has an agreement with the regional council and is happy to have them as a friend rather than a signatory at
this stage. “There needs to be some more work done with the regional council [concerning] unique conditions on the West Coast,” he says. The accord, headed by DairyNZ, is backed by 15 regional councils, all milk processors, fertiliser companies, Irrigation New Zealand, Federated Farmers and the Government. Targets are also set for each farm to have nutrient and riparian management plans, and for farms to comply with effluent management rules in their respective regions. Mackle acknowledged the accord will not solve issues in all water catchments. But it will go a long way towards solving problems in most catchments, he says. “The accord
addresses issues and seeks improvements that will result in good, tidy dairy farms around the country.” Mackle says getting 15 regional councils to back the accord was crucial. “The 15 councils cover all the dairying regions. The councils will engage with the dairy sector to develop and implement programmes to meet our shared goals.” Federated Farmers’ dairy chairperson Willy Leferink says farmers are ready to play their part. The federation’s signature on the new accord represents farmers’ commitment to do all we can to protect the water quality in our streams and rivers, says Leferink, Farmers will also work
on water quality projects at catchment and community level as regional councils set about putting policies in place over the next few years, he says. “If we want to meet the aspirations we have as an
Westland chief executive Rod Quin (left) and Federated Farmers chief executive Conor English at the launch.
industry, meet government expectations and earn the respect of the wider community, then
farming sustainably is the way ahead.” @dairy_news facebook.com/dairynews
Fonterra suppliers hard at it FONTERRA FARMERS will be well placed to meet the new accord goals after spending millions of dollars over the past nine years on environmental improvements, says cooperative affairs managing director Todd Muller. “It’s important to recognise huge progress is being made,” Muller says. “Fonterra suppliers are working hard to have cows excluded from waterways by the December 2013 deadline set out in Supply Fonterra, a programme run by the co-op. This includes mapping waterways on
Fonterra farms and agreeing work plans with farmers who are still working towards completing stock exclusion by December. “We are also working with our farmers and providing the support they need to achieve other targets set out in Supply Fonterra and the accord. To do this we have increased our sustainable dairying advisory team from four to 17.” Muller says making the accord a success will require all stakeholders to work together. “No one group can make this happen on its own.”
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Dairy News july 23, 2013
news // 11
Farming, enviro go hand-in-hand PRIMARY INDUSTRIES Minister Nathan Guy says there is no longer a choice between the economy or the environment; it has to be both. Speaking at the launch of a new dairy industry strategy, ‘Making Dairy Farming Work for Everyone’, he noted it was proof of the dairy sector’s commitment to the environment. “There is a perception in some quarters of New Zealand media, and held by some political parties, that farmers don’t care about the environment; that farmers are short term thinkers, who care only about profit; and that farmers are the main polluters of our waterways,” he says. “As a farmer myself, and as the Minister for Primary Industries, I completely refute these perceptions. “Yes there is a distinction between good and bad farmers. And yes a few farmers do act in a way that is not sustainable. But there are a few ‘ratbags’ in any business, across any sector.” Guy says most farmers are environmentalists, and want to leave the land in a better state than they found it. “Farmers are a competitive bunch and want to be the best across a wide range of indicators, including both environmental
and economic. Farmers are there for the long haul, they are the custodians of their land.”
ported by all The new Accord is sup . ies pan com ry dai
The new strategy requires farmers to build economically sustainable businesses with a strong focus on environmental actions. One of the first actions from the strategy is a new dairy industry water
accord with commitments and targets to enhance the performance of dairy farming as it affects fresh water. It was developed by DairyNZ, the Dairy Companies Association of New Zealand (DCANZ), Federated Farmers Dairy section and the Dairy Women’s Network. It sets out 10 objectives including proactive environmental stewardship and wise use of natural resources, providing a worldclass on-farm work environment and ensuring talented people are attracted to the industry. Research to develop innovative technologies and solutions is also a key objective. DairyNZ chairman John Luxton says milk production in New Zealand has grown 47% in the last ten years and reached 1.7 billion kgMS in 2012. “Twenty-one percent of New Zealand’s grasslands are now used for dairy farming,” he told the 300 industry leaders at the launch. “With over $13 billion in dairy exports in 2012 and a $5 billion contribution to national gross domestic product, our industry employs 45,000
Primary Industries Minister Nathan Guy (left) with ANZ’s Graham Turley and DairyNZ chief executive Tim Mackle at the Accord launch.
people. The Government has a business growth agenda… to grow dairying’s contribution to national prosperity.” But the size and scale of the dairy industry demands that it has a new plan for farming competitively and responsibly. This is what this new strategy is all about, says Luxton. DCANZ chairman Malcolm Bailey says the new water accord, launched together with the new strategy, is supported across the industry and sets national environmental benchmarks for dairy farming covering stock exclu-
sion from waterways and riparian areas, effluent, nutrient and water use management. It also sets outs new industry standards for conversions of land to dairying. “The new water accord is an industry programme of self-improvement with targets, actions and commitments. We will also report publicly on progress through an annual, independently audited report,” Bailey says. @dairy_news facebook.com/dairynews
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Dairy News july 23, 2013
12 // news
Fresh food drive behind rising raw milk sales pam tipa pamelat@ruralnews.co.nz
GROWING SALES of raw milk are consumer driven, not producer driven, says Ray Ridings, a spokesman for a new association of producers. A code of practice will be developed for sale of raw milk by the Raw Milk Producers Association of New Zealand which held its first annual meeting
access to fresh food. Raw milk is just part of that change in our society.” Ridings says the association has a challenge ahead of it “to work toward how we can get a workable code of practice for small producers, as well as our large producers… and for sheep, goats and cows.” Many raw milk producers in the association are supplying dairy companies for processing as
“The demand is coming from the consumer, it is not coming from the producer.” in Wellington last week. About 35 producers turned up from both islands. Ridings told Dairy News producers are getting constant phone calls for consumers looking for raw milk. “The demand is coming from the consumer, it is not coming from the producer. “I think it is part of the change in society with people wanting fresh food, that’s reflected in farmers’ markets, people growing their own gardens, and an awareness of getting
well, some with herds up to 700-800 cows. “But there is also a range of raw milk-only farms already in existence and starting up. Some of those range from one or two cows to 20 or 30, and one is 100 cows producing raw milk only,” he says. There are also goats, and Ridings says although he is not personally aware of sales of raw sheep milk, a sheep milking farmer attended last week’s meeting “There was good posi-
Consumer demand is driving raw milk sales, say farmers.
tive feedback, everybody agreed that we move forward and create some form of code of practice and become an incorporated society.” Ministry for Primary Industries (MPI) representatives attended to give a briefing on MPI’s position “and we all agreed we’ve got to create a good
Rules to balance demand and protect public health - MPI POTENTIAL CHANGES to rules on the sale of raw milk would balance demand with protecting public health, says MPI deputy directorgeneral Carol Barnao. Requirements were reviewed by MPI in October 2011, with nearly 1700 submissions received, most from raw milk consumers and farmers who sold raw milk. Most supported continued sales. In December 2012 the then Food Safety Minister (Kate Wilkinson) reiterated her support for continued farmgate sales of raw milk and agreed to investigate increasing the amount that can be bought. “That minister asked MPI to undertake further scientific and policy work to investigate potential changes to the current rules that would balance allowing people who seek out raw milk to purchase it while protecting public
health,” says Barnao. “This work includes identifying proposed options for: animal health and hygiene requirements; limits on the quantity that can be purchased and sold; whether the milk can be sold off the farm; and how consumers can be better informed of the risks associated with raw drinking milk at the point of sale.” That work will go to the current Minister for Food Safety Nikki Kaye. Further consultation will be held before any law changes. For information on food safety regarding raw milk visit www. foodsmart.govt.nz/food-safety/highrisk-foods “This includes information on why raw milk is high risk, and why MPI advises vulnerable people, such as young children, not to drink raw milk,” MPI says.
positive working relationship and help manage the raw milk industry in a safe way,” says Ridings. Because of the upsurge in demand MPI plans new rules “and they are wanting assistance with that,” says Ridings. “We will be meeting with them again and supplying them with whatever information they need.” MPI says current rules allow dairy farmers to sell limited quantities of raw (unpasteurised) drinking milk from their dairy premises direct to consumers – commonly referred to as farm gate sales. Currently people can buy up to 5L at a time for their own or family use. The rules also require dairy farmers selling raw milk to consumers to operate under a risk management plan that is specifically for raw drinking milk. “The current rules are difficult to interpret, apply and enforce,” says MPI deputy director general Carol Barnao. The rules are now under review. @dairy_news facebook.com/dairynews
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Dairy News july 23, 2013
14 // news
Storm hits as calving starts peter burke peterb@ruralnews.co.nz
DAIRY
FARMERS in lower Manawatu had to quickly move their cows to higher ground as heavy rain hit the region last week. The rainfall was so heavy it forced Horizons Regional Council to open the floodgates at Moutoa near Foxton to take the pressure off the Manawatu River and stop further flooding. But for dairy farmers like John McAloon it meant quickly moving his stock out of the Moutoa floodway where he leases 150ha. He says he was given plenty of warning to move his stock and described the flood as relatively minor. But it was a bit of pain now he’s starting calving the first of his 1750 cows “The land was not under water for long but there is a lot of debris for us to clear away. It’s a real mess this time with the timber, mainly broken wire and smashed fences. We’ll have stock in there shortly because the pasture is not too badly damaged.” He says it’s been a good winter so far, but now the grass growth is slowing as the
pastures get wetter. “The good days are over for a while.” Meanwhile in Taranaki strong winds caused problems for dairy farmers. Bryce Kaiser, Federated Farmers Dairy chairman for the province says farm sheds and houses were damaged by the high winds. Power was knocked out to some farms but he says since the storms of about 18 months ago, many dairy farmers have either bought generators or done a deal with their neighbours so they can continue to milk. The power company did a good job restoring power, Kaiser says. “I think the winds came from the southeast. They were very strong and I was out in the middle of it. It nearly blew me off my farm bike while I was busy trying to shift stock to more sheltered parts of the farm.” Kaiser farms about 20 minutes northwest of Hawera. This storm was not as bad as last year’s which blew over large trees and knocked out power for several days. The floodwaters have inundated this floodway in the Lower Manawatu River below state highway near Foxton which is normally grazed by dairy cows. Gates, fences and water troughs have been damaged and weed and other debris has been caught up in the fences.
John McAloon
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Dairy News july 23, 2013
news // 15
NZ milk offers hope for acne sufferers “Many said they were happy to see a New Zealand biotechsudeshk@ruralnews.co.nz nology company developing these dairy-based bioactives AN ACNE treatment cream contain- for acne management,” he ing bioactive proteins sourced from told Dairy News. “The conNew Zealand milk will hit pharmacy sensus was that there was a place for an over-the-counshelves later this year. Hamilton-based dairy biotech- ter alternative for treatment nology company Quantec Ltd hopes of mild-to-moderate acne to commercially launch the product and acne associated inflammation of the face.” in three to four months. The IDP based cream conQuantec’s patented complex of bioactive milk proteins, called IDP, tains dairy products sourced is the active ingredient in a specially from New Zealand milk. formulated skin cream. The prod- Washington-Smith uct went head-to-head in a double says Quantec only blind study against a premium, US- works with such based clinical brand of acne treat- dairy products. ment cream (containing 2% salicylic “In New Zeaacid plus retinal). At the conclusion land, in addition of the 42-day trial involving 84 sub- to the quality of jects, both the premium brand of acne our milk, we Rod Claycomb treatment cream and the IDP-based are also at an cream showed statistically equivalent advantage from a pastoral dairy industry, as this proresults in reducing acne lesions. The IDP-based cream, however, vides an economy of scale from the quantity of milk during also showed a major the milking season for improvement of at least The IDP52% in reducing red- based cream development of our dairy bioactives.” ness and inflammation, contains As part of the cliniQuantec says. cal assessment, the IDPThe results were this dairy based cream also passed month presented to der- products matologists at the New sourced from specific testing for use Zealand Dermatological on subjects with sensitive New Zealand skin, making it the supeSociety annual meeting milk. in Coolum, Australia. rior performer of the two Quantec business products and ideal for development manager Grant Wash- users with hyper-reactive and sensiington-Smith says the response from tive skin, the company says. New Zealand dermatologists has been Quantec founder and managing encouraging. director Dr Rod Claycomb says IDP is SUDESH KISSUN
a unique and naturally derived complex of bio-proteins “which make them very powerful against certain types of disease-causing bacteria which leave the natural and beneficial bacteria of the skin largely unaffected”. “By leaving these natural and beneficial bacteria active on the skin, IDP creates a scenario for treatment and management of acne. In addition, the IDP bio-proteins signal directly to inflamed tissues and cells to quell the inflammatory response.” IDP is said to be antibacterial, antiinflammatory and antioxidant. @dairy_news facebook.com/dairynews
Bee threat ‘serious’ AUGUST IS ‘Bee Aware Month’ and the National Beekeepers Association is urging the Government to take the threat to bees much more seriously. Bees account for at least $5 billion of New Zealand’s economy through the pollination of crops and honey exports. But all wild bees have been wiped out by the varroa mite which is also threatening the rest of our bees, says NBA chief executive Daniel Paul. “The varroa mite is one of the biggest threats facing our kiwi bees. It has spread throughout the country and we desperately need to contain this dangerous pest,” The NBA is calling for donations to help fund the fight to research and find a solution to the problem. The NBA says other threats to New Zealand bees are pesticides, including neonicotinoids, a lack of nutrition for bees and potential honey imports. “The Government is considering allowing honey imports into New Zealand from various countries. But honeys from around the world can
bring in a range of pests and diseases that would pose significant biosecurity risks for our bees. “Kiwi bees need our help. In some countries bees are dying in huge numbers. There are some concerning bee deaths here in New Zealand but so far things aren’t as bad as they are overseas. We need to do all we can to help protect our bees to stop the situation getting worse. “Not only do bees contribute bil-
lions of dollars to our economy, most of our food depends on pollination by bees, as do our gardens. A world without bees is too terrible to imagine.” The NBA urges New Zealanders to plant more bee-friendly plants and to use more bee-friendly sprays in their gardens. The NBA also wants to do the first ever nationwide Bee Health survey to find out what’s happening to kiwi bee populations.
Dairy News july 23, 2013
16 // news
Prestigious sire one of a lineup BREEDERS lyna and Luke Beehre have a knack of producing winners. Their sire Okura KRC Iceberg was awarded the prestigious JT Thwaites Sire of the Season award presented by Jersey New Zealand at its annual conference in Hamilton recently. Iceberg is the fourth bull bred by their Okura Jersey Stud to receive this award, behind Okura Doyles Imran GR, Okura Manhatten ET SJ3 and Okura Lika Murmur S3J. With a breeding worth of 236/82, Ice-
berg is currently the number four Jersey bull on the RAS list. A stipulation of the award is that the recipient must have at least 40 daughters in production over a minimum of 20 herds, a minimum of 20 daughters contributing to TOP information, a minimum 75% reliability and no less than -0.2 for udder overall, dairy conformation and overall opinion. Okura KRC Iceberg was CRV Ambreed’s top Jersey graduate this year. Jersey New Zealand and CRV Ambreed are jointly running the JerseyGenome programme, which aims to identify and grow superior genetics within the breed. Jersey New Zealand president Brian Cater says it has an ambitious goal for Five yearly intakes, four intakes completed the Jersey breed: capture 55 members 25% of the New Zealand 5857 heifers considered (over the five market by 2025. years) “There are some 764 heifers Genotyped (over the five exciting things to conyears) sider with regard to prog176 heifers selected for the team (over the ress towards the goal: 16 first four years) new Jersey NZ memberships 73 graduates (from the first three years) alone in April, 226 heifers in 27 graduates awarded (over first three the JerseyGenome 2012 intake years), nine elite, nine highly commended advancing to genomic testing and nine merit. and the 2013 Jersey Pride line
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Jersey New Zealand president Brian Carter (left), presenting the JT Thwaites Sire of the Season trophy to Iceberg breeders Lyna and Luke Beehre.
up surpassed all expectations. “As an AB industry we have some exciting challenges ahead. We have to harness new sciences but equally we have to do well in our traditional areas of strength such as data.
“New tools such as smart phone applications for AI recordings, and onthe-go farm management programs such as InSight will enhance our ability to capture data. We must now make better use of these tools extensively to
continue building our data; no modern AB company can survive without data.” Carter says progressive organisations like Jersey New Zealand will be the key to creating pathways for new technology.
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Dairy News july 23, 2013
18 // news
Taiwan tariffs down to zero pam tipa pamelat@ruralnews.co.nz
TARIFFS NOW set at 5-20% on dairy
products bound for Taiwan will now reduce to zero with the signing of an economic cooperation agreement, says the Dairy Companies Association of New Zealand (DCANZ) chairman Malcolm Bailey. Milk powder is New Zealand’s main export to Taiwan, Bailey told Dairy
News, but the FTA could see a wider range of products exported in the long run. “It’s good news; Taiwan is a significant and growing market.” The agreement, formally signed in Wellington on July 10, will end tariffs on 98% of trade within four years, says DCANZ. Virtually all tariffs on dairy products will go immediately. The exception for dairy – liquid milk – will be subject to a 12 year transition to full tariff elimination. UHT is likely to come within this category, but in gen-
eral liquid milk is not a big part of our exports. Bailey says the agreement was a great outcome of the negotiation and would benefit both countries’ economies. “Taiwanese consumers will benefit as New Zealand dairy exporters and Taiwanese companies work in complementary ways to meet the growing demand of the Taiwanese population for the high quality nutrition dairy provides.” New Zealand is a longstanding supplier to Taiwan, exporting dairy prod-
ucts for about 30 years. Taiwanese dairy consumption is continuing to expand in line with rising incomes and imported products play a role in meeting consumer demand that cannot be met by domestic production alone. Most Taiwanese milk is for drinking. In 2012, Taiwan was New Zealand’s fifteenth-largest dairy export market, with trade valued at NZ$310 million. “As a trading nation all New Zealanders benefit from trade liberalisation. In an increasingly hungry world,
Malcolm Bailey
trade also improves food security for consumers. ” The agreement with Taiwan will complement New Zealand’s existing trade agreements with China and Hong Kong. @dairy_news facebook.com/dairynews
Fonterra reports strong response to GMP pilot FONTERRA SAYS its guaranteed milk price (GMP) pilot for the 201314 season has attracted a broad cross-section of farmers from around the country. A total of 328 farms have applied to supply 37 million kgMS for the pilot which guarantees a payout of $7/kgMS for this season.
To maintain the pilot size of 15m kgMS – about 1% of the co-op’s total milk supply – applicants were scaled to 40% of their requested kgMS (with a minimum threshold of 10% of a farm’s production). Fonterra’s director of commodity risk and trading, Bruce Turner, says the
uptake from farmers is positive for the pilot and the co-op. “It has given us a broad cross-section of famers from right across the country who are at varying stages of their farming operations. This will allow us to give comprehensive feedback to all shareholders on the benefits
and the risks, and this way our farmers can see if it is something that might suit them in the future.” The pilot was launched earlier this year, giving farmers the opportunity to lock in 10-75% of their milk supply at the opening season’s milk price forecast of $7. “We recognise every
farming business is different. And while most farmers can live with the market volatility, there are times when some farmers would prefer more certainty as it would help them manage their own farming businesses and that’s why we’ve developed this pilot,” says Turner.
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“GMP is a bit like having a fixed interest rate on your mortgage versus a floating rate. It enables farmers to know exactly where they stand with a percentage of their production and this can help with future planning.” As well as more certainty for farmers, GMP allows the co-op to lock in
fixed-contract prices with its customers. “This means even if commodity prices drop and the milk price also drops, those customers will continue to pay the fixed price for their products, which supports the GMP price and means there is no risk to the co-op,” says Turner.
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Dairy News july 23, 2013
news // 19
ASEAN ‘tigers’ beckon dairy NEW ZEALAND will
need to get its strategy right to take advantage of big dairy trade opportunities in the ASEAN-6 group of countries, says Rabobank. The bank says New Zealand has a competitive advantage in the ASEAN ‘six majors’ (the six largest economies of the Association of South East Asian Nations – Indonesia, Thailand, Malaysia, Singapore, the Philippines and Vietnam). Dairy demand is growing underpinned by favourable economic and demographic conditions. Local supply is unable to keep pace with demand. However, it warns, capitalising on the opportunities in the ASEAN-6 region will be challenging. “To unlock the full potential and to maximise profitability, dairy
exporters may need to rethink their export strategies,” says the report author, senior dairy analyst Michael Harvey. “Given the inherent price sensitivity across the region, exporters will need to continue to ‘stretch’ the milk, adopting strategies where dairy produce is mixed with non-dairy components to make products more affordable.” New Zealand exporters face challenges including greater competition from other exporters. Dairy exporters need to make a long-term commitment to these markets, Harvey says. “New Zealand dairy processors have already undertaken investment to capture the opportunity, but more will be required. Having a solid and expanding supply base will ensure a strong reputation as a
Rabobank dairy analyst Michael Harvey says South East Asia’s top six economies offer big growth potential for dairy.
reliable supplier.” Over the past decade, dairy products imported into the ASEAN-6 region have been growing at about 4% per annum. In 2012, dairy trade flows (from all countries) surpassed 1.6 million tonnes (11 billion L in milk equivalents) and equated to an export value exceeding NZ$7 billion. By 2020,
these markets collectively are likely to consume an additional three billion litres of milk compared to their consumption in 2012. Harvey says Rabobank ASEAN-6 countries will exhibit annual growth rates in dairy consumption well above the world average of 2.4% per annum. “Within the ASEAN region, the fastest rate of growth is expected in Indonesia and Vietnam.” With per capita dairy consumption rates among the ASEAN-6 nations very low by global standards, the potential for growth is huge, Harvey says. “The latest statistics indicate that Malaysians, who have the highest consumption rates of dairy among the ASEAN-6 countries, consume on average 51kg of dairy per person each year, while Indonesians consume just
8kg. Comparing this with consumption in developed Asian economies such as Japan, where annual per capita dairy consumption
is 85kg, indicates there is significant growth potential in these markets.” A common feature across the ASEAN-6 mar-
kets is they are all dairy ‘deficit’ countries, already heavily reliant on imports. @dairy_news facebook.com/dairynews
PM launches ASEAN strategy NEW ZEALAND currently exports about $1.9 billion in dairy products annually to ASEAN countries, according an ASEAN strategy launched by the Prime Minister John Key last week. The bulk of that is milk powder worth $1.4 billion. The new Government strategy is to see all exports to the region boosted by 40% by the end of 2017. Key last week launched the NZ Inc ASEAN Strategy, which aims to boost investment, trade and economic returns from the region. “The 10 countries of the Association of South East Asian Nations is a region whose 620 million people account for nearly 10% of the world’s population,”
says Key. “Already ASEAN as a bloc is New Zealand’s fourth-largest trading partner and over the past 10 years New Zealand’s total trade with ASEAN has grown at 9% per year on average. “New Zealand needs to be making the most of a young, increasingly urban, affluent and quality conscious region only half the distance from our traditional European customers. “We are in a sound position to boost our relationship with the region. We have a free trade agreement in place, a strong shared history, and are geographically close,” says Key. Visit www.nzincstrategy.mfat. govt.nz
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Dairy News july 23, 2013
20 // news
Constantly sniffing the breeze for disease PAM TIPA pamelat@ruralnews.co.nz
A SIGNIFICANT biosecurity incursion is rated in the top three risks facing
the dairy industry, says Fonterra’s risk manager Dr Lindsay Burton. “Even if the products were treated and safe, the markets are sensitive. The response may not be
rational,” he told a New Zealand Institute of Agricultural and Horticultural Science forum in Auckland. With a disease outbreak in animals “sud-
denly the environment changes and you just can’t pick up milk from every farm and push it around the country… you have a significant change in the business dynamics. Any
incursion will create major issues in terms of product.” You would have to think about product in storage – the industry only has about three weeks
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storage capacity – stock in transit and in production. How would the markets and trade respond? Would regulators understand the implications of our change in status and a state of uncertainty while the diagnostics are being worked through? How would regulators and key customers respond? With New Zealand exporting 90% of its dairy product, what would happen to international milk prices during a period of uncertainty? “If prices hit the roof, competitors will try to take customers.” With a rapidly spreading disease such as foot and mouth, there would be new strains the scientists would have to work through. Ruminants large and small would be affected. “We don’t know a lot about it – the spread for instance; we know how it operates in an overseas environment, but don’t know how it operates in New Zealand.” Burton says there’s a lot of imported feed, not just PKE, but copra, tapioca, and poppyseed that require standards applied to them. “You can have import standards, you can have expectations, but dollars drive different behaviours.” And he says the dairy industry has to realise it can’t ignore biosecurity
Fonterra risk manager Dr Lindsay Burton says we need our eyes wide open on biosecurity.
risks to plants, for instance the Great White Cabbage butterfly, a threat to brassica crops which was found in Nelson in 2010. “We have to recognise we are not just about producing animal products, we (the dairy industry) consume a huge amount of plant product. So our feed source is critically important to us, so we even take an interest in the great white cabbage butterfly, even though it is located in Nelson.” Burton says it hasn’t been eradicated and he believes it should have. “It has the potential to impact on brassica crops which are a major feed source for the dairy and sheep industry in New Zealand.” Burton says the ability to trade products in the international market is an important factor. “But the fact we don’t have a lot of diseases – and that is not just the cattle industry – gives us a productivity advantage. @dairy_news facebook.com/dairynews
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A TOP scientist gives New Zealand a 55% rating for our biosecurity systems. Free trade agreements and tourism are putting us at risk, says science strategist John Lancashire, but biosecurity is more important for New Zealand than any other nation on earth. Recent incursions cost $1-2 billion. The MPI must consider international trade obligations when making a risk assessment. There is tremendous pressure from the Government for more free trade agreements. But New Zealand needs to toughen up, he says. Australia takes a tougher line on biosecurity yet we are more dependent on primary exports. “The Government is very keen to further increase tourism and with the PM as the Minister of Tourism, it will happen,” he said. Two former biosecurity officers in New Zealand believe that border screening shortcuts have increased the chances of pests getting into the country. Lancashire was speaking at the NZ Institute of Agricultural and Horticultural Science, of which he is president.
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world // 23
‘Legendairy’ Oz farmers to showcase dairy launching a major advertising campaign to promote dairy farming and milk foods to consumers. The new ‘Legendairy’ platform moves dramatically away from traditional product promotion to put the spotlight on the industry as a whole. It will relay inspirational stories of the people behind the product, celebrating Australia’s Legendairy dairy farmers, the quality dairy foods they produce and their contribution to the Australian economy. It will feature eight new Legendairy advertisements airing across all media, public relations, grassroots sponsorships and visibility in Australia’s eight regional dairy communities as part of an initial three year strategy. It’s the first major dairy advertising campaign for six years from Dairy Australia, which says recent overseas experience highlights the fact that non-branded dairy advertising works. Generic dairy advertising recently resumed in the UK after five years, the decline of milk sales by 82 million litres within 18 months. Dairy Australia, however, hopes its new initiative will do a lot more than simply increase sales. “It’s to give the industry a well deserved boost,” says Dairy Australia’s group manager for industry promotion and product innovation, Isabel MacNeill. “We want to tell the story of Australia’s dairy industry and it doesn’t stop at just milk. In the face of recent tough times, Australia’s dairy farmers have continued to grow and care for their A$4 billion dairy industry,” says MacNeill. “The Legendairy campaign will
The advertising campaign will be launched in August.
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media, and on radio and an exclusive sponsorship of the Melbourne Victory vs Liverpool football club match on July 24. CumminsRoss’ chief executive officer Sean Cummins believes Legendairy will get Australians thinking differently about dairy in the long-term. “The Legendairy campaign is playful and genuine. “It’s not just about marketing milk; we’re sharing the bigger picture – a mosaic of stories with one clear message: our Aussie dairy farmers and Australian dairy products are Legendairy,” says Cummins.
Arla’s triple strike at global dairy innovation awards DANISH COOPERATIVE Arla had many rea-
sons to celebrate after topping three categories at the recent global Dairy Innovation Awards. The global dairy giant took home awards for best cheese, best butter or dairy spread and best dairy packaging innovation. Arla was the only company to scoop more than one award in the competition, which drew 140 entries from 23 countries in 15 categories. Clinching the title of best cheese was Arla’s Unika range. The result of a 10-year innovation project, the cheeses are inspired by Nordic nature and wildlife and have been developed in collaboration with leading Danish chefs. The range of cheeses
varies during the year, to reflect the seasons and the composition of cows’ milk which affect the flavor and texture of the cheeses. The judge said it was a great idea to use chefs to promote cheese. They described the cheese as “on-trend artisan cheese for an increasingly discerning consumer”. In the butter or dairy spread category, perserverance and lots of taste tests paid off. Arla’s Kærgården with flavor, produced at Holstebro dairy in Denmark, took the top title. Christian Kragholm Borregaard, global brand manager, sees two reasons for Arla’s success: “great tasting products that consumers and customers have received well,
The new PET bottles designed for the U K fresh milk market took the top award in packaging.
and we have had the consumer in mind all through the development process, in respect of product and communication. This has resulted in a concept that has hit it home with our target audience.” In the best dairy packaging innovation, Arla won with a new PET bottle(1L and 500ml) designed
for its premium UK milk brand Cravendale – “easy to use, hold and pour, and easy to open and reseal without spilling milk”. The 500ml version has enabled Arla to enter the growing ‘food to go’ sector. Commenting on the awards, organiser Bill Bruce said innovation continues to be the key driver in the dairy industry and that was evident in the wide range of new products and packaging ideas. “All this activity helps to make the dairy sector the most exciting food and beverage category. Every year, the Dairy Innovation Awards helps us shine a spotlight on the sector, drawing attention to positive trends. This year was no exception.”
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Dairy News july 23, 2013
24 // OPINION Ruminating
EDITORIAL
An elephant in the room
milking it... Chardonnay socialism? ONE OF Milking It’s townie mates reports that a wellknown defender of the poor and down-trodden has been seen regularly fuelling his righteous indignation at a number of nice Auckland eateries. Nothing wrong with that, but as our source says, left-wing agitator Matt McCarten seems happy enough swilling at the same eateries frequented by the ‘entitled few’ on the political right, whilst dreaming up his next attack on capitalism, John Key’s ‘rich mates’, anyone anti-union, etc, etc. Just another chardonnay socialist?
Keep it Kiwi TO BE seen as modern and worldly, Federated Farmers probably has to walk a tight-rope between protecting their local producers’ interests against outside influences and promoting free trade on a global scale. They seem to have veered to the globalist side of things with their publishing venture, contracted to an overseas company to run. Kiwi-owned publishers don’t mind competition, but when a Feds-backed overseas competitor starts cutting prices to unsustainable levels, you have to wonder how committed Feds is to local services – free newspapers in this case – for local farmers.
Barking up the wrong tree
Falling cow kills man
FISH AND Game North Canterbury and West Coast branches have come out strongly against Westland’s refusal to sign the new dairy industry water accord. They called on Westland to keep nutrients out of waterways in the region. Westland backs the accord and wants amendments to reflect the region’s topography and extreme climatic conditions. They are a ‘friend’ of the accord, like MPI, Minstry of Environment and the Federation of Maori Authorities. Again, Fish and Game is barking up the wrong tree.
POLICE SAY a cow has fallen through the roof of a small house in southeast Brazil, killing a man and narrowly missing his wife. A police officer in the town of Caratinga says Joao Maria de Souza and his wife were sleeping when the one-ton cow fell through the asbestos roof on to the victim. The officer said Souza died of internal bleeding at a nearby hospital. He said the cow apparently was grazing on a small hill above Souza’s home.
GLOBAL DAIRY players don’t come much bigger and more powerful than Royal FrieslandCampina. The Dutch cooperative has 19,487 member dairy farmers in the Netherlands, Germany and Belgium, making it one of world’s largest dairy co-ops. Every day it sells dairy products to 1 billion consumers around the world. With annual revenue of $18 billion, FrieslandCampina is one of the world’s five largest dairy companies. Almost similar to Fonterra in revenue, FrieslandCampina is also one of its biggest competitors. Therefore, the Dutch co-op’s surprise investment in South Canterbury processor Synlait this month is seen as a turning point for New Zealand’s dairy industry. It’s not so much the New Zealand market that will worry Fonterra because the prize isn’t New Zealand but Asia and its lucrative infant formula trade. With one investment FrieslandCampina has entered New Zealand’s dairy industry, but, more importantly, it has established vital business links with Chinese dairy giant Bright Dairy and Japanese company Mitsui. The gold of this era is infant formula and New Zealand is the goldmine of quality milk. Our infant formula products are revered by Asian consumers. And Synlait is in an area where food and dairy products and particularly infant formula are the hottest thing in the world. Fonterra, launching its own infant formula brand in China later this year, suddenly finds a major global competitor exporting New Zealand-made infant formula from its backyard. Fonterra will have no problems working with FrieslandCampina – DFE Pharma; the world’s leading provider of pharmaceutical grade inhalation lactose is a joint venture between the two co-ops. But Fonterra will be watching closely. Friesland Campina can increase its stake in Synlait, expand its reach in New Zealand and springboard into Australia. It could even look at building its own processing plant and poaching milk suppliers from Fonterra. In that event the competition from the new entrant would be different than from the likes of Miraka, Open Country Dairy and Westland. Federated Farmers Dairy chairman Willy Leferink is right: things have become interesting. How Fonterra responds remains to be seen. Fonterra’s board will be banking on chief executive Theo Spierings for leadership to deal with this new arrival in New Zealand’s dairy market. After all, Spierings was one of the architects of the merger between the Friesland Foods and Campina co-ops that led to the formation of the mega processor in December 2008.
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Dairy News july 23, 2013
opinion // 25
Setting out to do even better DairyNZ chairman John Luxton spoke at the recent launch of the industry strategy for sustainable farming ‘Making Dairy Farming Work for Everyone’. Here are excerpts from his speech. NEW ZEALAND dairy is one area in which we are already the world’s best. Our 11,500 dairy farms are, like the All Blacks, the best there is. They produce, along with the processing sector, about three out of every ten dollars New Zealand earns from the rest of the world. The Prime Minister four years ago told us, “It is important farmers step up and take leadership on meeting some of the environmental challenges that will shape the future of your industry… to protect our environmental brand abroad and to keep faith with the New Zealand public who look to us as important custodians of the natural environment for this and future generations.” We have responded as we are a dynamic industry and we continue to do things better. A key challenge is making the most of a rising global demand for our valued and in-demand products – milk and beef – and to capture the benefits for dairy farming and for New Zealand. As the title of our strategy says, we want to make dairy farming work for everyone. That is the single most important concept behind this strategy. We have set out a strategy for taking dairy farming forward to 2020: to be competitive and responsible, because this strategy and our competitive advantage rely on what happens behind the farm gate – the area where New Zealand dairy farmers are world leaders. We know the Government has a business growth agenda and dairying is a huge contributor to it. We are right behind that agenda in terms of working with the Government to continue to grow our export contribution to national prosperity. The work we are doing together through the Primary Growth Partnership is a big part of that. New Zealand’s dairy farmers currently invest through their industry levy about $60m per year on research and development to improve our productiv-
ity and sustainability. We must remain competitive to have a future. Milk production is New Zealand has grown 50% in the last ten years and reached 1.7 billion kgMS in 2012. But the size and scale of our industry demand that we have a new plan for farming competitively and responsibly. And the New Zealand community has demanded it too. This is what this new strategy is all about. We are an industry that cares for the land, produces the goods, drives local economies and national prosperity, and delivers as the largest dairy exporter in the world. This is something to be proud of – as a country and as dairy farmers. We also want, and continue to be, caring custodians of the land. Kaitiakitanga. I especially want to the mention the support of the Federation of Maori Authorities, the iwi representatives and Maori farming trusts, for their willingness to join us on this journey and become ‘friends’ of our water accord. Maori agribusiness is keen to work in partnership with us. They are also now among our largest dairy farming businesses. And we want and need to get better at showing New Zealanders how we are doing that, and what we are achieving particularly in the environmental space. Our farmers invest tens of millions of dollars each year in effluent and water management systems, they have fenced over 20,000kms of waterways to exclude stock, we spend over $20m per year protecting native bush from pests through the TB-free programme, we protect special parts of our farms with QEII covenants, and we do a huge amount of riparian planting. There is no other group of New Zealanders doing more for conservation in New Zealand than our dairy industry. We also claim to have a smaller environmental footprint than most dairy industries in today’s world and a
smaller footprint per unit of production than we had ten years ago, despite the comments from some critics. In DairyNZ we also now have a team of top environmental scientists helping
us on the road to continual improvement. The accord is the industry’s response to public concerns about our environmental stewardship. We are taking action. We are setting targets. We are
making commitments, across the industry. We are stepping up to meet your expectations of us as farmers and businesses. We’re doing a pretty good job, but we are setting out to do better.
DairyNZ chairman John Luxton (right) with Prime Minister at the launch.
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Dairy News july 23, 2013
26 // agribusiness
Fonterra revamps executive team FONTERRA HAS appointed two new members to its executive management team. Former Nestle executive Lukas Paravicini takes over in September as the chief financial officer. He replaces Jonathan Mason, who retires after four years in the job. The co-op has also appointed Jacqueline Chow to the newly created position of managing director global brands and nutrition. Chow will drive Fonterra’s overall marketing, innovation and research activities. Fonterra chief executive Theo Spier- Jacqueline Chow ings says the appointments reflect well on the cooperative’s continued ability as a global player in the dairy industry to attract high calibre, internationally experi-
enced people to senior management roles. “Lukas and Jacqueline will join our team which is focused on driving our V3 strategy forward. We look forward to them contributing their expertise at the top table. “Lukas’ strengths and experience will be a considerable asset to Fonterra. He really understands dairy and has lived and worked in some of our most strategically important markets. “Jacqueline will bring extensive FMCG and marketing experience to our marketing and innovation agenda in support of our strategy.” Paravicini joins Fonterra after 22
years with Nestle. He has been general manager for Nestle Professional Europe for the last two years and prior to this he held a number of senior finance positions in different parts of the Nestle business including running its global business services and spending 10 years in Latin America. Chow has a 20-year career in global blue-chip multinationals and joins Fonterra from Arnott’s, where she was general manager of Australia and New Zealand and led the growth of its $1 billion business. She has held executive marketing and innovation roles in Campbell’s and the Kellogg Company, and started her career as a strategy consultant in consumer products. With these appointments the Fonterra management team which drives the strategy and day-to-day performance of the business now comprises: ■■ Managing director NZ Milk Products, Gary Romano ■■ Managing director APMEA (acting), Johan Priem ■■ Managing director Greater China & India, Kelvin Wickham ■■ Managing director Latin America, Alex Turnbull
Chief financial officer, Lukas Paravicini ■■ Managing director global brands & nutrition, Jacqueline Chow ■■ Managing director people, culture & services, Chris Caldwell The roles of group director strategy, Maury Leyland, group director cooperative affairs, Todd Muller, and a new role of group director communications, Kerry Underhill, will provide group-wide support and report to Spierings. Group director mergers & acquisitions, Paul Campbell, will report to Paravicini. Ian Palliser, who was previously MD group optimisation & supply chain, is taking up a role leading one of Fonterra’s key strategic initiatives. The functions within his previous role have been incorporated into other areas of Fonterra’s management team. Sarah Kennedy’s next move will be the subject of a separate announcement. Kennedy was previously MD Fonterra Nutrition which has been incorporated primarily into the new ■■
Lukas Paravicini
global brands & nutrition function. The new organisation structure will take effect from the start of Fonterra’s financial year on August 1.
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Naturally ahead
Dairy News july 23, 2013
agribusiness // 27
Irrigation scheme meeting draws 200 farmers ABOUT 200 farm-
ers gathered in Central Hawke’s Bay last week to find out more about the Ruataniwha Water Storage Scheme and its potential to irrigate 25,000ha extra land. The consortia bidding to lead Hawke’s Bay’s largest construction project met locals at Waipawa. Leading European contractor Obrascon Huarte Lain (OHL) and Hawkins Infrastructure, New Zealand’s largest privately owned construction company, have joined forces to bid for the design and construction of the scheme.
rectly through exports and economic growth,” says Livesay. Central Hawke’s Bay farmer, George Williams says he is excited about the water storage scheme as it will boost his production. “I will be able to irrigate a wider variety of crops. At the moment I can only grow peas and barley. I can’t get the contracts to grow specialist vegetable crops because we don’t have certainty on water. We are excited…. We have so much flat productive land that is underutilised in Hawke’s Bay. Irrigation is the way forward.”
“The venture strongly reflects a commitment to achieve a financially viable, minimal risk project.” – Steve Livesay OHL Hawkins bid manager Steve Livesay outlined the opportunities and potential, acknowledging that “a reliable source of water is the key to sustainable farming”. “Our team understands that water needs to be used more efficiently on farms and we are committed to working with farmers to develop the concepts. We want to work with farmers to drive the development and change the way water is managed in CHB.” The proposed scheme includes a 90 metre-high dam, which will store 90 million m3 with potential to irrigate much more land in the drought prone region. “Communities which have water storage schemes have benefitted hugely, directly through employment and indi-
Also part of the OHL Hawkins consortia is The Water Infrastructure Group (WIG) responsible for getting the water to the farm gate, in charge of the design and construction of the secondary distribution. New Zealand manager Aynsley Griffith says the scheme will unlock big opportunities for intensive cropping and dairy farming. “We have built irrigation schemes in Canterbury which have unlocked new farming opportunities such as dairy and specialist cropping. We have seen the spin-offs it creates for other farmers who will need to support the new dairy farms. Certainty of water will also help farmers clinch specialist cropping contracts.” The OHL Hawkins joint venture is expected to pro-
in brief 300 jobs to go FONTERRA IS shedding 300 jobs as part of a review of its support services. Affected employees will complete their notice periods by October. Chief executive Theo Spierings says the review identified opportunities to reduce duplication and layers of management in the corporate office and to further Fonterra’s strategies.. “These reviews are not easy and that makes it all the more impressive that the people involved have been professional, open and honest in their views and supportive of what we’re aiming to achieve. “We are investing in growth and it is important to ensure our people are working on the right things and that we are spending our capital on the right priorities. We are confident the review has achieved this.”
vide massive employment for the Hawke’s Bay region. A workforce peaking at about 200 is expected to be working on the project. “We are dedicated to employing local sub-contractors. We won’t bring an army of workers with us from Auckland. We want to employ locals so money
is injected back into the local economy,” says Livesay. “The venture strongly reflects a commitment to achieve a financially viable, minimal risk project, built to a high standard in a realistic time frame giving long term value for money,” he says.
Farmers who attended last week’s meeting.
Dairy News july 23, 2013
28 // agribusiness
ASB general manager rural Mark Heer.
Bank sponsorship to help financial skills NEW GOLD sponsorship by ASB will boost work in progress by Dairy Women’s Network to lift the financial literacy skills of dairy farming women. DairyNZ model-
Levucell SC_Grass_Advert_w210xh297_FIELDAYS_Curves_WithBleed.pdf
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ling shows the industry’s profitability could be improved by $1 billion per year, or about $1000/ ha, by improving financial literacy and management capability. And there
3:36:30 p.m.
is a significant range in profitability between dairy farmers, partly because of management capability. ASB general manager rural Mark Heer says ASB will work with the DWN
and its members to share financial expertise, help build financial capabilities and add value to farming businesses. “The Dairy Women’s Network acknowledges the value women add to the industry and has created a forum to build and encourage business leadership, share knowledge, seek advice and find professional support,” says Heer. DWN executive chair Michelle Wilson says the partnership with ASB will help its 4800 members with workshops, webinars and conferences. “Alongside our prime funder DairyNZ… this additional support is a great opportunity for ASB and our members to work together improving the industry’s financial management practices.” She says the network’s growth during the past few years signalled a change in the role of women in the industry and the contribution they make to its success, including effectively managing finances.
“In reality dairying women are directors, managers and, in many cases, owners of multimillion dollar businesses which need people with sound financial and business acumen alongside the practical skills of farming and leadership capabilities.” The Dairy Women’s Network was set up in 1998 to expand the potential of dairy women by providing leadership, inspiration, learning and connection. The network runs Dairy Days workshops, regional groups, conferences and other events. The ASB gold sponsorship follows Ballance Agri-Nutrients in May confirming its prime sponsorship of the DWN. The DWN also recently got a $180,000 grant from the Ministry of Primary Industries’ Sustainable Farming Fund for a three-year project to develop the first leadership programme for dairying women. @dairy_news facebook.com/dairynews
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Waikato record for Agrecovery WAIKATO FARMERS last month disposed a
record six tones of hazardous horticultural, agricultural and veterinary chemicals. Federated Farmers has praised farmers for embracing Agrecovery’s rural recycling campaign. “Farmers are choosing to dispose of their chemical waste responsibly due to the convenience of the service,” says James Houghton, Federated Farmers Waikato provincial president. “It is great to see increasing numbers of farmers using Agrecovery. It is another example of farmers changing their behaviour and working for the good of the environment without the need for legislation. “Being environmentally friendly does not come free, so the money invested by our local councils enables the program to work and gain traction, which, as you can see, is having the desired outcome. “Farmers buy-in to Agrecovery comes from a desire to look after our land, our water and the environment for today’s and tomorrow’s generation,” Mr Houghton finished. Agrecovery chairman, Graeme Peters, was equally buoyed by the record breaking collection. “I am enthused by the huge uptake in the Waikato; it is five times the amount collected in Waikato last year and is the largest recovery on record,” says Peters.
Malcolm Ellis – Bull Acquisition Manager
As a farmer making breeding decisions I always wanted the best, and Premier Sires gave me the top ranked LIC progeny tested bulls. With the advent of genomics, there was a need to consider the issues of risk and reward. Reliability has been an issue, and some of the early results from young sires did not meet expectation. With the lessons learned over the past several years LIC has taken the opportunity to review the structure of the Premier Sires teams. The Daughter Proven option remains unchanged, and there is still an alternative for those wanting to access the cream of the young sire crop. This is called the Premier Sires “Forward Pack” and it is comprised of the top ranked bulls from both categories – the best Daughter Proven sires complemented by a selection of young sires that we think tick all the boxes – outstanding ancestry, proven cow families, depth of pedigree and genomic evaluation. I always demanded the best, now I’m going to deliver it.
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Dairy News july 23, 2013
30 // management
Uni farm bucks trend among peers to lift profits “Our cost per kilogramme of milksolids is still relatively high and we need to be seeking ways to tidy it up and get our cost structure a wee bit tidier if we can,” Lee said. feed costs and lower pasment manager Steve Lee, LINCOLN UNIVERUnusually for the July a member of LUDF’s man- ture production due to SITY Dairy Farm has focus day, no budget for agement team, as he intro- clover root weevil were bucked the trend of its the coming season was among the challenges the duced the figures. high performance peers presented as the bones peer-group farms cited as LUDF managed to and increased operating of it were shave 8c/ profit. addressed at kgMS off Figures presented ear“Our cost per kilogram of the May focus lier this month at the third its operatmilk solids is still relatively day (Dairy ing costs of its focus days for the high and we need to be News, May while the year show it boosted the others’ costs bottom line $112/ha to seeking ways to tidy it up and 14). At that, increased, $4665/ha while the four get our cost structure a wee SIDDC execalthough farms it benchmarks with bit tidier if we can.” utive director LUDF started saw operating profit fall Ron Pellow from a 2011/12 (see table). unveiled a nitrogen cut reasons for their figures, figure “head and shoul“Not only was there a from 350kg N/ha to 260kg lower milk price but it was ders” higher than its peers, Lee said. N/ha, with no applicaAt $4.22/kgMS LUDF’s at $4.30/kgMS. a harder season to farm costs in 2012/13 were mid- tion greater than 25kg/ A tough spring, irrigathrough,” noted DairyNZ ha. That will save $31,000, table for the five farms. tion restrictions, higher productivity developbut a provision for up to Operating profit/ha comparison $55,000 on bought-in feed has been made to compenFarmer 2011-12 2012-13 Change sate for the possible shortSlee 5696 5271 -425 fall in pasture production. Acton 5249 4442 -807 No eco-n applications will save $48,000. Davie-Martin 5219 4803 -416 At this month’s field LUDF 4553 4665 +112 day, Lee touched on some other areas exercising Donkers 3756 4301 -545 the management team’s
Update: DairyNZ’s Steve Lee addresses the LUDF Focus Day.
LINCOLN UNIVERSITY Dairy Farm held its third focus day of the year earlier this month, reflecting on the season gone, the one to come, and system research at the university’s facility across the road. Andrew Swallow reports.
minds, such as wintering costs. “Our graziers do a great job for us but is the model [of grazing off] really working for us and do we have options going forward?” he asked, rhetorically. At 25-27c/kgDM, the price LUDF is paying for winter crop, either kale or fodder beet, is “at the high end”, he maintained. However, one farmer present suggested that was cheap for Canterbury, and another said winter grazing rates needed to be at least that or the crops wouldn’t be grown. Overall, at 90c/kgMS, LUDF’s wintering and replacement costs were equal top. Lee highlighted Slee’s 10-20c/kgMS figure.
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“They’re spending a whole lot less. They are positively deviant these people. “They are doing something really good we can learn from… they own and control all of their dairy support.” But having said that, he added LUDF is not “about to run out and buy a support block” and per-cow costs (ie animal health, breeding, wintering and replacement costs) of
about a quarter of total operating costs are “reality and something we have to live with.” A smaller herd – LUDF now has 630 cows compared to 670 on average historically – should help “keep a lid on per cow costs,” noted Pellow. With fewer replacements, total animals owned will be down to about 950 in future, from about 1060 in the past, added Lee.
Think ahead on pasture AN EXPERT in dairy production systems at Massey
University says farmers need to think six months ahead when planning how their pastures will perform in the late spring and early summer. Danny Donaghy, Massey/DairyNZ professor of dairy production systems and a Massey lecturer, is involved in a range of research projects relating to dairy production. At a recent DairyNZ discussion group in Wairarapa he talked to dairy farmers about how they could best manage their farming system in a wet spring. He told Dairy News they discussed where farmers are at now and how they were planning for October. The key message was that farmers needed to manage their pasture carefully in autumn and not stress the grass so that it will come away on cue. “We can have the sunniest, mildest October and November on record, but the pastures are not going to come away and they won’t get the growth rates they are expecting or hoping for unless they plan six months in advance.” Farmers must also be aware of when pastures are susceptible to major damage, he says. It’s not when pastures are waterlogged and spongy, but rather when they dry out a bit which makes them prone to compaction.
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Dairy News july 23, 2013
32 // management
Protecting streams for profit nitrates from fertilisers, and agricultural chemicals. Besides helping boost animal health, cleaner water means PROTECTING STREAM banks on drainage pipes are less likely to block. Stream bank erosion is another way livestock farms is an important way of protecting farmer profits and the envi- sediments and nutrients get into waterways. Assets such as land and buildronment. Farming depends on good quality ings can also be threatened by erosion. water for stock and, generally speak- Shrubs and trees with extensive fibrous root systems, and which ing, better water quality tolerate moist soil conmeans healthier animals ditions and frequent silt and higher productivity. deposition, are ideal for But intensive farming, forpreventing stream bank estry, roading and horticulerosion. Tree roots also ture can cause soil erosion, protect the streambed, limand build-ups of contamiiting the scouring effect of nants such as bacteria and running water. chemicals washed into Bala Tikkisetty Good riparian vegetawatercourses by heavy rain. So managing the margins of water- tion can be effective in reducing the ways – the so-called riparian zones – impact of flooding as it helps regulate helps protect water quality on farmers’ water getting into waterways. Shade from riparian vegetation can own properties and those of their downhelp prevent algal blooms and provides stream colleagues. On the water quality front, a well- cover for aquatic life such as spawning managed riparian margin – which ani- fish. Trees also help stimulate aquatic mals are kept away from – will filter out life and provide a habitat for birds. Enhancing the environment of sediments and nutrients from farm runoff. These contaminants can include waterways adds to the attractiveness soil, dung and urine, phosphates and of the local environment and its recbala tikkisetty
A well-managed riparian margin will filter out sediments and nutrients from farm run-off.
reational values for locals and tourists. Financial benefits for farms include shelter and shade boosting animal health and production. Also, improved milk grades are documented where dairy sheds no longer draw water from contaminated streams. On sheep and beef properties, stock
are generally in better health and have faster weight gain when water sources are no longer contaminated. Riparian management, including the associated fencing of waterways, helps with stock movement and reduces stock losses. It’s important to get the right ripar-
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Dairy News july 23, 2013
34 // management
‘Wriggle room’ with winter WINTERING IS a recognised nutrient-loss hotspot for dairy but there are ways to manipulate losses without eco-n or investing in wintering barns, it seems. “There is some wriggle
room in how we manage winter crops,” Dairy NZ principal scientist David Chapman told the Lincoln University Dairy Farm focus day. Lincoln University’s
Grant Edwards went on to explain fodder beet’s very low crude protein content means urine nitrogen content of cows grazing the crop is “extremely low”, even where the diet is Grant Edwards
supplemented with grass silage. “It’s more like a sheep urine patch in terms of nitrogen than a typical grazing cow’s urine patch,” he commented. However, fodder beet’s typically high yields/ha mean high stocking rates and consequent high number of urine patches/ ha, eroding that environmental advantage. “The urine’s covering
the paddock something like one and a half times and the higher the yield the higher those losses will be. What saves fodder beet from having a high environmental footprint, because of the high stocking rates on it, is that low nitrogen content.” The net result measured in lysimeters by Lincoln University in wintering paddocks is typically 75-85kgN/ha lost under
kale and 55-60kgN/ha under fodder beet. While some dairy farmers might not worry about losses under crop because they happen on someone else’s farm, Chapman says understanding how dairy farming systems impact nutrient losses across catchments is important. Taking a holistic view also brings the apparently high production/ha of
high input systems into line with all grass because the area used to grow inputs such as grain off the milking platform dilutes the milk production/ha from it. Edwards also talked about pasture composition as a tool to boost production and, potentially, cut nutrient losses. Diverse pasture mixes including chicory and plantain with standard
cow genetics leaving pasture behind GENETIC GAINS in cow productivity are outstripping those in pastures such that stocking rates should be reducing year on year, all other things being equal, Edwards told the focus day. Extra feed demand of cows capable of higher production,
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as defined by BW, means at 3 cows/ha eating 4.5tDM/cow, an extra 95kg DM/ha/year is needed to feed them. Meanwhile the rate of genetic gain in pasture production, assuming the farm is keeping up with pasture renewal, is about 0.5%, or 75kgDM/ha/
year on a 15tDM/ha baseline. “So there’s a bit of a shortage there,” noted Edwards. If pasture supply is static, then the gap is even wider, such that two cows per herd of 350 should be shed every year if pasture supply is to meet production demand.
Dairy News july 23, 2013
management // 35
crop losses nitrate leaching. We see these pastures as a tool to reduce that.” And while the data Edwards presented was from Lincoln, data from similar work in Waikato is producing very similar results, he said. As yet, Overseer can’t model such pasture composition differences but the data is being supplied to the programme’s keepers with a view to it being integrated in the future, he added. Unfortunately the news isn’t so good for lucerne, at least from a nitrogen Diverse
loss point of view. The crop is quite justifiably called the “king of forages” for its production, typically outyielding ryegrass whether dryland or irrigated. Milk yield per cow off the crop is also 7% higher than off straight ryegrass, but urine nitrogen concentration’s been found to be 24-74% higher, depending on season. “We’re getting a really high nitrogen urine patch…. Potentially that’s a risk.” That appears to be factored into the current Overseer model as Standard
Drymatter / ha / year
16.8
15.2
MJ of ME /kgDM
11.8
11.7
kgMS / cow / day
1.61
1.53
Urine n conc g / L
3.4
5.8
354
426
Urine N excreted g / L
Pasture work: diverse pastures including plantain (inset) are proving more productive with lower nitrogen losses at the LUDF.
a farmer present noted that grazing his cows on lucerne in the summer puts his system “through the roof” on nitrogen loss. Edwards said more work is planned to check the losses under lucerne as it may be that the plant’s ability to take water from great depth means it can also mop up nitrogen from
depth, nitrogen that is currently assumed to be a
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ryegrass and white clover swards on the research farm have, to date, yielded more drymatter than straight ryegrass clover and are of higher quality, resulting in 5% higher milk production/cow. Meanwhile the urine nitrogen concentration of cows on diverse pasture was at least 40% lower (see table), with slightly higher volume, likely meaning a lower intensity of nitrogen deposition in each urine patch. “The amount of nitrogen falling in a urine patch is a key driver for
6/26/13 5:02 PM
Dairy News july 23, 2013
36 // management
On-the-ball contractor expecting good times PAM TIPA pamelat@ruralnews.co.nz
THE BETTER payout
Steve Levet, Wellsford, has been elected president of the Rural Contractors Association.
and lift in farmer confidence is likely also to mean a better season for contractors, says the newly elected president
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of the Rural Contractors Association, Steve Levet. “The dairy farmers are really the ones who pay the bills. With the payout almost double last year’s, there’s going to be a lot more money in circulation. The contractors will hopefully get the spin off
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from that,” he told Dairy News. Last year the whole industry was hit by drought on top of a lower payout and is still in recovery. Levet was elected president last month and is ready to lend his weight to initiatives the 470-member association has underway. These include lobbying government on seasonal workers and trying to attract the brightest young people to all areas of agriculture, including contracting. About three quarters of his rural contracting work comes from dairy farms and that would be true for most contractors, says Levet. He is an Albertlander – a descendant of the first settlers of the Wellsford area north of Auckland and last year he was chairman of the Albertlanders’ 150th anniversary. He is also the cousin of Gordon Levet, the renowned Romney sheep breeder. Levet farms 62ha and in the last three years has reared calves – 210 last year and 150-200 this year. He is doing straight Fresian bulls and has 85 in the shed at present. With two fulltime workers for the contracting business, the farming operation gives his staff work through winter. He does fertiliser spreading with a 4WD truck and a trailer and trailer spreader and has a six-wheeler for general cartage, does seed drilling, hay baling and has a 12-tonne digger for earthworks such as dams, house sites and roads. He also does cultivation; he bales hay but doesn’t do silage. He has been contracting in his own right since
1980 and a member of the contractors’ organisation since 1986. Members can get premiums on insurance and fuel, benefit from networking among members, get advice on legal and council issues, and the organisation lobbies government on issues pertinent to the industry. It can provide advice to members on health and safety and employment with prototype employment contracts available. The association has one paid part-time staff member chief executive, Roger Parton. “Every year at conference we always have an hour session on employment,” says Levet. “It always provokes good interaction, because everybody through the course of the year has an employment issue with somebody. The goalposts for employing people are constantly on the move.” Typical of their activities in support of members is helping a Bay of Plenty contractor in a battle with the council which wants to restrict his activities. “We’ve been actively engaged in fighting Western Bays over consents for his yard,” he says. It’s the type of case which could set a precedent for other councils to follow. The association also lobbied government over the agricultural transport regulations and helped win some “common sense” concessions. The association is also keeping a watch on government moves on health and safety and lobbying to make it easier to obtain return visas for seasonal experience contractors who work both in hemispheres.
best, brightest wanted LEVET IS also on a mission to encourage the young people into the industry “We want to highlight to schools and educators [the good prospects in] agriculture today. Long gone are the days when you put the halfwits in there. It’s no longer ‘you’re not performing, you go farming’. “Agricultural contracting is the same. The machinery we’ve got is highly sophisticated and expensive and you’ve got to be computer literate to drive a tractor these days.” Agricultural contracting can become a career pathway, with young people initially working for a contractor then starting their own business.
Dairy News july 23, 2013
animal health // 37
Keep cows on the right tracks “They will need to put a bit of slope on the track for drainage otherpeterb@ruralnews.co.nz wise you’ll get pooling of water and of course that’s not good for animals. But EXTRA CARE in building and main- you need to be careful that the slope is taining races on dairy farms can mark- quite small because cows don’t like to walk on a sloping surface; edly reduce lameness they prefer to walk on the problems, says DairyNZ. flat. If you’ve got too much Animal husbandry and slope you’ll concentrate welfare team leader Nita the cow movements in the Harding says cows prefer middle of the race.” walking on level tracks – Harding, a veterinarian, they don’t like slopes. Too says the sloping surface will much camber on tracks can put pressure on the hooves lead to lameness. Nita Harding which leads to problems “Farmers need to get predisposing the animals advice from people who have built farm tracks, talk to neigh- to lameness. “It puts pressure on the bours and look at our information on wrong places in the hoof. The cow’s the ‘healthy hoof programme’ for guid- hoof is designed to be used in a particular way by the cow. If you put pressure at ance on how tracks need to be built. peter burke
The materials used on races can also affect lameness.
odd angles then it will damage the hoof. You know what it’s like yourself if you walk on a sloping surface: it puts a strain on your legs and joints.” According to Harding, the effects of
lameness are felt on a farm’s bottom line. Lame cows produce less and have poorer reproductive performance; large numbers of lame cows in a herd will affect the productivity of the herd.
And numbers of lame cows can cause frustration for staff and lead to lower morale. “Lame cows are slower and more difficult to move. There’s time spent finding and treating cows and it’s a welfare concern as well.” The materials used on races can also affect lameness. Harding says if the surface is too rough it will damage and bruise the hoof of an animal, and small stones caught between the claws can be an issue. “We see a number of infections in cows’ feet, and physical damage which causes pain that can lead to abscesses…. You know if you have sore feet it’s very uncomfortable;.it’s the same with cows.” Cows walking long distances do not necessarily get lame, Harding says. But cows walking on poor tracks will.
Prevention is better than cure that can affect calves if not treated adequately. Calves get coccidiosis from consuming the oocysts prevalent in the soil or bedding material. These oocysts affect the gut lining in the calf and, consequently, affect absorption of nutrients. Calves that become susceptible to coccidiosis suffer from scouring, loss of appetite, poor bodyweight gains and possibly even death. However, by the time the disease is diagnosed most of the damage has been done and weight gains have deteriorated. Sub-clinical cases are hard to detect and, as a result, a major portion
required to prevent coccidiosis is 1mg lasalocid /kg bodyweight. However, because the required dosage for protection changes with increasing bodyweight, it is evident that when Bovatec is added into calf feed only, protection from cocciodiosis is often not achieved until 4-5 weeks of age (see figure). In addition, because feed intake is varied between calves on any given day due to feed trough space, disease status or weather, it is expected that some calves would be getting adequate protection while some would be prone to coccidiosis. It is therefore, not uncommon for an ionophore to be added into whole milk or calf milk replacer to cover this deficit in the first 4-5 weeks and provide adequate protection for coccid-
iosis. Calf Vigor is a liquid blend of Bovatec (lasalocid sodium) together with added vitamins, to be administered to calves to provide protection against coccidiosis. A dose rate of 25ml
per calf per day from 2 days of age will typically provide adequate protection against coccidiosis. • Alun Faulkner is country manager for Lallemand NZ
As the dry flow granules poured into the dispenser, I relaxed, knowing the herd was being looked after.
N
EW
T E
NZ
G Y
COCCIDIOSIS IS a common disease
of the economic losses from coccidiosis occur without the farmer knowing there is a problem until it is too late. Even after treatment, the calf may never fully recover in 10 weeks. In addition, treatment at this stage is often an expensive option. In the case of this disease, ‘prevention is better than cure’. A group of anti-coccidials compounds called ionophores (example tradename Bovatec of which the active ingredient is lasalocid sodium) are effective in preventing the disease as they disrupt the functioning of the oocysts in the gut lining and prevent the disease from occurring. It is common for ionphores to be added into proprietary calf feeds. In the case of Bovatec, the dosage
O
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Dairy News july 23, 2013
38 // animal health
Queen of Calves
Healthier calves and bigger heifers gareth gillatt
A MANAWATU pedi-
gree Jersey stud using the Queen of Calves
milk additives to produce healthier calves and more productive heifers is getting good results, says sharemilker Susanna Booth.
Susanna and her husband Michael sharemilk on her parent’s 210ha, 750 cow property, the Thorton Park Jersey and Ayrshire Stud, in Longburn, near
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University found that calves fed the supplement grew 10-18% more than those without. The Massey University study was published in the highly rated dairy publication the US Journal of Dairy Science. Booth says it was results like this which prompted her to suggest using the product. Mixing is done via the Bell-Booth Super Bowl, a modified pumping system capable of stirring mixture for 700 calves in 15 minutes. Booth pours the powder into the milk and then lets the solution mix for 30 minutes before feeding it out. “Preparation takes me no longer than previously.” Clean-up is also easy, says Booth, “You need to clean it every now and again. I rinse it out once every three to four weeks, there’s minimal clean up.” Booth initially gives calves 5L/day but says she needs to give stock supplements earlier than in other calf rearing regimes due to the faster developed rumen. Though straw is used on the Thorton Park Jersey stud, Booth says anything that provides roughage would work just as well. You’ll find them nibbling away at it fairly quickly.” The Queen of Calves supplement costs $80 a calf plus the cost of extra supplementary feed, but Booth says it more than pays for itself in grown out calves and well developed heifers. “We find when we feed it to calves we don’t get them coming in sick. It gives them a bit of oomph, a good start so they can come back from grazing well grown out.” Tel. 0800 80 90 91 www.queenofcalves. com
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Palmerston North. Susanna’s parents, Richard and Joy Gibson, first used the product with calves in 2008 at the suggestion of Susanna who wanted to modernize the farm’s calf rearing process and saw the product as a way to do that. “Data had come out of studies which suggested it was a good product to use. As we have pedigree studs we are trying to breed good stock that are well grown and come in with good production so Queen of Calves seemed to be the right product to use.” Booth says the results were bigger calves and larger first calvers. In fact, Booth’s father said the farm produced its biggest heifers ever in 2012. Well-grown, top producing heifers are an important part of the stud business, says Booth, as a portion of the farm’s income is made selling stock at on-farm auctions. Booth says customers have noticed the difference in heifers. “This year at the on-farm sale one of our customers said she would use Queen of Calves this year on the strength of what she saw.” The herd produced 298,000kgMS in the 20112012 season, 28,000 more than production in 2008. Booth says the larger heifers added to that immensely.”If you get it right at the start it sets you up for the future. We get rewarded with the cows that are coming in as first calvers.” The supplement uses a mix of carbohydrates and amino acids to improve the digestibility of milk. The maker, Bell Booth, claims it is able to increase calves skeletal development by 23% in their first 12 weeks. Studies by Auckland University and Massey
17/07/13 3:39 PM
Dairy News july 23, 2013
animal health // 39
Ruminant diets increase the exposure of cows to mycotoxins.
Managing mycotoxins in dairy cows 200
700
655
Number of silage samples tested (2012)
180
600
160
478 35%
140
500
55%
120
77%
100
80
97%
176
40
45%
0
200
65%
6 3% Afla
400
300
60
20
79%
Average of positive (ppb)
microorganisms exacerbating the situation (1). Rumen dysfunction Mycotoxins in the MYCOTOXINS ARE rumen also exhibit antitoxic secondary metabolites (chemicals) produced microbial, anti-protozoal and antifungal by moulds. As ruminants activity. If rumen microare thought to be more flora is unable to degrade resistant to mycotoxins, the mycotoxins they dairy farmers have often will escape the rumen overlooked the negative intact and reach the site effects of these metaboof intestinal absorplites. Why is this a risky tion, thus harming the practice? animal (1). MycotoxComplex diets Ruminant diets include ins are also known to pasture, concentrates and decrease ruminal motility and dry matter, acid deterfibre sources (hay and gent fibre and silage). All starch digesthese feedtion (2). stuffs increase Infertility the exposure Zearaleof animals to none (ZEN) mycotoxins. is an estroThe interacgenic metabotion between lite reported to mycotoxins Ines Rodrigues occur worldoften leads to wide in silage (Figure 1), synergistic effects, when hay, corn and other grains the negative effect of one such as soybeans, wheat, mycotoxin is amplified by barley, oats and sorghum. the presence of another. Chemically, ZEN shows High-yielding cows a similar configuration With increasing milk yield, cows are given larger to that of oestradiol, the female hormone, thus amounts of feed and passage rate is higher. As such, impairing animal fertility. At least 90% of less time is available for ingested ZEN is converted complete digestion and degradation of mycotoxins into a-zearalenol (about by rumen microorganisms. 10 times more estrogenic) in the rumen (5). Questionable rumen Vulvar mucous discharge, degradation repeated AI, increased Some mycotoxins are culling due to infertility converted into metabolites that retain or increase and difficult heat detection are some of the probtheir biological activities, such as aflatoxins and lems which may be related with ZEN intake by cows zearalenone, respectively. (3). Notably, drastic changes Milk production in feed composition and Deoxynivalenol (DON a high percentage of proor vomitoxin) (also shown tein-rich concentrates in in Figure 1) has been assothe diet modify the cleavciated with reduced feed age capacity of rumen ines rodrigues
100
23%
21% 4
FUM
OTA
0 ZEN
Positive samples
DON Negative samples
average of positive (ppb)
Figure 1 - Results for silage samples tested in 2012 sourced worldwide (BIOMIN mycotoxin survey)
Figure 2 – Effects of mycotoxins in dairy cattle
intake and weight gain and decreased performance (4). Human health The most worrying aspect of mycotoxins in dairy is their impact on human health. Carcinogenic aflatoxins are carried over into milk as aflatoxin M1 (AfM1). Carry-over rates range from 1.8% to 6.2%, depending on contamination of feed and milk yield (5). Metabolic problems Figure 2 summarises the effects of mycotoxins in dairy cattle. Subclinical mycotoxicoses are common and lead to a decrease in profitability by lowering milk production and quality and an increase in expenses due to additional veterinary
intervention. Mycotoxin Risk Management Biomin has devoted 30 years of research on mycotoxin deactivation. The best way to manage mycotoxins is with a triple assault strategy – 1) adsorption, 2) biological degradation and 3) protection of the liver and immune system. Mycofix Plus 3.E, registered in New Zealand, helps in the management of aflatoxins and of the adverse effects caused by mycotoxins. • Inês Rodrigues is technical manager, Biomin Singapore Pte Ltd. Email:ines. rodrigues@biomin.net. References are available from the author upon request.
Dairy News july 23, 2013
40 // animal health
Taranaki TB hiccup timely reminder not to drop guard andrew swallow andrews@ruralnews.co.nz
TWO CLUSTERS of TB infections
on dairy farms in Taranaki this year are a reminder to farmers everywhere not to drop their guard on the disease, say industry representatives. “One of the big challenges is keeping people engaged,” says TBfree Taranaki committee chairman Donald McIntyre. Incidence of the disease on-farm in most areas has plummeted thanks to concerted control efforts but it will take decades before the risk is eliminated and complacency is already creeping in, he told Dairy News. “We’ve faced that in Taranaki for a long time… When you haven’t got it as an everyday issue you tend not to plan to counteract it.” Despite this year’s outbreaks Taranaki is still classified as TB-free and testing of wildlife in the areas of the two outbreaks, around Inglewood and Opunake, has so far found that still to be the case, says TBfree New Zealand national
disease manager Kevin Crews. “This survey work will continue until we are confident there is no wild animal TB risk present,” says Crews. Last week TBfree announced the first round of full herd tests on the six affected farms had also found no further reactors. McIntyre says that’s the “first step” towards ridding the herds of TB, but two successive all-clear whole-herd skin tests and a blood test are required before herds are declared free of infection. “The nature of the disease means it can conceal itself for some time before it manifests itself in a herd,” he notes. McIntyre says he understands the numbers culled as a result of positive tests in the Taranaki clusters have been “quite substantial” and carcase inspections found “significant numbers” with lesions. TBfree New Zealand told Dairy News it would not reveal numbers culled, nor if any were found to be false positives (ie cattle which reacted to the skin test but following slaughter could not be confirmed as having the disease by either
lesions or culturing of samples). Neither would it say how much compensation has been paid as a result of the culls, other than saying as far as it knows all owners have been compensated in accordance with the standard 65% of the animal’s value – as determined by an independent valuer – by TBfree New Zealand. Dairy NZ is understood to top that up to 100% of the animal’s value. Initial cases from both clusters were discovered because of lesions found in cull animals. Subsequent infections were found following trace forward analysis of movements to other herds. “We believe the Opunake cluster could be linked to an earlier cluster from 2008, since declared clear, but investigation and analysis are continuing,” a TBfree spokesman told Dairy News. “It is important to state that there is no suggestion any of the affected herdowners did anything other than fully comply with their obligations under the TB control programme,” he added. McIntyre told Dairy News four farms
are affected in the Inglewood area, and two near Opunake. Three of the Inglewood farms have family ties with movement of stock between the farms. The clear tests have been a relief for the affected farms, he adds. “Having an infected herd is extremely stressful…. The co-operation and support of the Taranaki farming community in helping the TB control programme stay on top
of the herd infections has been greatly appreciated.” All affected herds are subject to movement restrictions until they record two clear tests, six months apart. Farms within a 10km radius of the infected farms are now on an annual testing regime “as a precautionary measure” to pick up any potential residual infection as quickly as possible, says TBfree.
10 things to know about TB ■■
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Bovine tuberculosis (Mycobacterium bovis) is an infectious disease that can affect a wide range of animals. In New Zealand, cattle and deer are the species most at risk of contracting the disease. Possums and ferrets are the main vectors (carriers) of bovine TB in New Zealand. Over 70% of new herd infections in TB-risk areas can be traced back to infected possums or ferrets. Bovine TB is a disease that affects all New Zealanders. Eradicating TB is vital to maintaining
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the production and reputation of dairy, beef and deer exports, worth around $14 billion a year to this country. TBfree New Zealand – is a nationwide programme of TB testing and vector or pest control that aims to eliminate the disease entirely. To do this, we work under a mandate of eradicating M. bovis from wild vector species across at least 2.5 million hectares – or one quarter – of New Zealand’s at-risk areas, by 2026. To control and contain the spread
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of the disease within cattle and deer herds, TBfree manages a nationwide testing programme. Around four million TB tests are carried out on cattle and deer every year. Animals suspected of having TB are slaughtered. To control the spread of the disease between infected herds and herds in high TB risk areas, all herds must be registered, and stock must be tagged correctly. To stop possums and ferrets, responsible for carrying TB and spreading the disease to cattle
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and deer, it surveys and controls wild animals across large areas of private and public land. When funding for possum control was cut in the late 1970s the number of infected herds tripled from around 550 to over 1700. That number started to drop again when full-scale possum control was reinstated in the early 1990s. This combination of wildlife control, livestock movement restrictions and effective disease management has led to a drop in infected herd numbers from 1700 in the mid-1990s to fewer than
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100 in 2013. We still have a long way to go. Infected possums are known to live in around 40% of New Zealand. The programme invests around $2.5 million a year in research with the goal of continually improving how the disease is diagnosed in cattle and deer and the methods used to control TB-carrying pests like possums. The key to beating TB is you. By following a few simple rules and regulations, you can help to keep yourself and your neighbours safe- TBfree NZ.
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Dairy News july 23, 2013
42 // calving
Mild winter so far will help farmers peter burke
FARMERS IN the lower North Island have been enjoying a mild winter as they head into calving. DairyNZ’s team leader for the region, Kevin Argyle, told Dairy News that so far it’s been a fantastic period with the late autumn following the drought when the rains came and the early winter has also been great. “Pasture growth rates have been fantastic, the soil temperature remained high for a long time and we only got half the normal rainfall in June so average pasture covers are above what Kevin Argyle they normally would be.” Argyle says cow condition is generally good because many farmers dried off earlier than normal. Things are good as farmers prepare for calving which seriously
gets underway this week. “Obviously there’s been quite a lot of rain last week in parts of the North Island especially in the Tararua district and Wairarapa where some areas have had over a 100mm. But because it has been so dry to date, the system will generally cope with that after a couple of days. The region is really in a good state for the start of calving.” Argyle says there hasn’t been the usual heavy frosts. “We are still seeing growth rates around central Manawatu of 25 and 35, well above what we’d normally see – about 10 to 15 – and this makes a huge difference. Obviously the old adage ‘grass growing grass’ and the fact that covers are higher means the big challenge is now managing the higher pasture covers and trying to get the utilisation right as it turns a bit wet.”
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Minerals build up nutrient reserves before calving WANT TOP qual-
ity colostrums for your calves? The answer lies in minerals and vitamins fed to dry cows, says Ballance animal nutrition manager Jackie Aveling. Mineral supplements for dry cows are known to build up nutrient reserves ahead of calving, but studies also suggest a direct link between supplements and the quality of colostrum which is essential to set up calves for their best start in life, she says. The studies, by Penn State University and funded by the Animal Health Commission of the Pennsylvania Department of Agriculture in the United States, showed a marked difference in colostrum quality when fat, protein, lactose and total solids were measured. The lowest samples were so poor that calves receiving those colostrum samples as a first feeding could not have obtained enough nutrients to get them off to a good start. Among the best were samples from cows fed dry cow minerals. “Minerals and vitamins fed to dry cows directly impact colostrum,” says Aveling. “In addition to ensuring cows are replacing their trace element and vitamin reserves ahead of
Mineral supplements for dry cows help build up nutrient reserves.
calving, the use of a molasses block like Crystalyx Dry cow can influence colostrum quality.” Calves need 3-4L of colostrum (about 10% of their birthweight) within the first 10 hours to provide the newborn calf with sufficient antibodies to protect the calf from blood poisoning/ navel infection or scours. New Zealand studies have shown only 50% of calves will naturally get this amount of colostral protection under New Zealand conditions. In calves the principal role of colostrum is to provide immunity against infection and disease, such as scours. Aveling says the Penn State study also showed a wide variation in the immunoglobulin content of colostrum sam-
pled. Again, the cow’s diet ahead of calving can contribute. Attention to nutrition ahead of calving will pay dividends in the health of the cow and her calf. At Parma University in Italy a study confirmed that feeding Crystalyx Dry Cow pre-calving increased colostrum protein, fat and total solids content and significantly increased colostrum yield and more than doubled the yield of colostral immunoglobulins. “For dry cows, supplements build up reserves promoting a strengthened immune response to help withstand challenges post calving. By aiding rumen performance and digestive efficiency, Crystalyx Dry Cow helps ensure a
good appetite post calving, which in turn promotes better lactation, and enables the animal to replenish its body reserves in preparation for mating. In particular, feeding supplements helps to maintain optimum blood magnesium levels, so reducing the risk of milk fever. “For calves, the benefits are a better start in life, especially for calves being raised as replacement heifers.” Ballance says local farmers continue to see the benefits of Crystalyx as part of their winter management. Northern Taranaki farmer Kevin Ingram says the product is “another tool in finetuning outcomes for the season.”
Dairy News july 23, 2013
calving // 43
Best practice in calf rearing DAIRYNZ urges
farmers to follow best practice in calf rearing. All calves, including bobbies must receive adequate fresh colostrum within the first 24 hours of life and should be fed colostrum, or a colostrum substitute, for at least the first four days of life, it says. Calves must be handled gently and with care. Do not allow anyone to throw, hit or drag a calf at any time. Electric prodders must not be used on calves.
Calves not with their dams must be given shelter so they can stay warm and dry. Calf pens must be fit for purpose and well maintained. Bedding areas must be comfortable, clean and dry, with adequate ventilation to ensure ammonia gas does not build up. Exposed concrete, bare earth and mud are not acceptable. Calves should be fed at the same times each day to minimise stress. Always ensure calves have access to large quantities of clean
water. Feed calves well to rapidly achieve weaning weight with a well developed rumen. A good supply of colostrum is also vital. The calf should drink at least 2-3L of fresh colostrum during the first six hours of life to get supply of immunoglobulins, which act as antibodies. To achieve
this, collect calves twice a day and give them firstday colostrum regardless of whether they have had a feed First-day colostrum is valuable (even if it contains blood or clotty mastitis milk). It should be fed fresh. To store colostrum (other than first-day colostrum) store in multi-
ple drums (to reduce risk of loss) in a cool place and stir it twice a day. A colostrum keeper can be added to maintain the sterility of the product. Colostrum can be frozen for up to six months but thaw in hot water, do not microwave.
Stage One
focus on hygiene ■■
Ensure good routine hygiene and health practices:
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Scrub all feeding equipment well with hot water and detergent
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Frequently clean and disinfect pens where sick calves are treated
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Spray pens weekly with a broad spectrum disinfectant
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Remove sick calves promptly to a sick bay
Stage Two
Fighting milk fever GARETH GILLATT
DOWNER cows and conditions prompted by milk
Tel. 0800 800 624 www.ethicalagents.co.nz
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fever can be virtually eliminated by using an oral calcium supplement Calol, according to Ethical Agents managing director Greg Roberts. About 5-10% of the national dairy herd suffers from milk fever every season and the high risk of permanent paralysis posed by milk fever makes it a real problem on dairy farms at calving time, says Roberts. The use of intravenous administered calcium borogluconate may not be enough if the condition is not caught soon enough, with relapse chances also high, Roberts says. “Cows can suffer a relapse within 24 hours.” But cows dosed with Calol face only a 5% likelihood they will suffer a milk fever relapse. The light yellow, creamy, water-in-oil emulsion contains 49.6g calcium as calcium chloride and 4.29g magnesium as magnesium chloride. The calcium chloride compound used in the solution mobilises the free and bound calcium from bones and the bloodstream. Roberts says a soya oil emulsion surrounding the dissolved calcium chloride solution coats the rumen walls to give the solution a longer efficiency. “It’s deliberately thick; if it was able to dissolve easily then it would stop acting quickly but it is able to remain effective in the cow’s rumen for 10-14 hours.” Roberts says Calol makers compensate for thickness by putting more than the 400ml recommended dosage into the bottle. Even then the thixotropic solution can be made thinner by shaking or warming. “Putting it in warm water before using it is a good way of making sure you get the full benefit out of each administration.” The mixture is made palatable to cows by using coconut and vanilla flavouring, making administration easier. The results are that cows regain calcium levels quickly and are able to go into the milking herd much faster with less chance of mastitis, infertility, retained afterbirth or other conditions that can be set off by milk fever, says Roberts. “More farmers want to treat the problem rather than treating the symptoms so we are seeing a wider use of this solution.”
www.fiber-fresh.com
Dairy News july 23, 2013
44 // calving
Careful matching great way to save $1000 EXTRA VIGILANCE is needed in recording the parentage of calves, says a DairyNZ subsidiary, NZ Animal Evaluation Ltd (NZAEL). NZAEL manager Dr Jeremy Bryant says ensuring heifer replacements are correctly matched to their mothers will help to boost profit through genetic improvements. “In the demanding, timestretched environment of spring calving, it could be easy to dismiss the importance of correctly matching calves to their mums,” says Bryant. A 2011 Abacus Bio Ltd study of 97 farms, funded by DairyNZ, Sustainable Farming Fund and Primary Growth Partnership, showed that on average 23% of calves had incorrect sires matched. It pays to take extra care, says Bryant. “In a 1000 cow herd, with 50% parentage errors, the average cost of lost production potential in
replacement heifers is about $1000 a year and compounds over time. “Greater risk of inbreeding or unintended mating of cows and sires that carry noted genes with health implications also arises.”
tor has recorded 100% accuracy on the calving matches in his 550 head herd. “I tend to pretty much take responsibility for checking and recording over calving myself; I think you really need one person
“In the demanding, time-stretched environment of spring calving, it could be easy to dismiss the importance of correctly matching calves to their mums.” In a recent edition of Ashburton Trading Society’s (ATS) bi-monthly magazine, a number of farmers told how they matched calves to their mother. Clandeboye Jersey breeder and owner of Lynbrook Jerseys, Steve Ireland, says there is no rocket science behind keeping good records on mother-daughter matching through calving time. The former NZAEL direc-
overseeing it.” He admits to still being a committed user of the yellow notebook system, recording every birth and mother’s ID, and updating his Minda records every couple of days. Ireland will check his calving mob up to six times a day, and inserts a brass tag in replacement heifer calves in the paddock. One set of tags is kept solely on
one ‘calving bike’ in a convenient bumbag, along with the notebook to ensure consistency. At the end of the day, if it appears the weather may close in, cows looking like they will calve are separated out into another break to reduce the risk of mis-mothering. Meanwhile, Rakaia farmers Hayden and Jessie Dorman also have some well-tried and simple methods for ensuring accurate calving data. They are focused on breeding cows capable of coping and producing in a high input farming system. Their ethos is ‘every cow counts’. To minimise mis-matching over calving, only their most experienced staff member pairs off calves and mothers for tagging, and the calving mob is checked frequently and data updated every day. “We also spend time getting our staff to understand why correct identification is important.” www.nzael.co.nz
Farmers have been told to be extra vigilant in recording the parentage of calves.
Can you tick all the boxes with your calves & herd health?
Yes or No?
Improved calf health?
Yes or No?
Better health during the cows transition period?
Calf souring?
Better in-calf rate due to less empty cows?
Heavier body weights at weaning?
Increased body condition during heavy lactation?
Better performing heifers entering the herd?
Less lameness? Assist milk production and $$$ returns?
If not palaMOUNTAINS Bovine nutrition can help tick the boxes that will assist your on-farm profit. For more information visit
www.palamountains.info or phone John Palamountain to arrange your on-farm nutrition consultant (06) 349 1005 or 0274 448 003
Dairy News july 23, 2013
calving // 45
Tried-and-true method a huge help at mating SPARE A thought for the best method of heat detection, advises GEA Farm Technologies, now that mating is just around the corner. Tail paint is the triedand-true, albeit somewhat low-tech, method with a long history in New Zealand. GEA Farm Technologies’ dairy hygiene and animal health supplies company FIL makes and supplies tail paint to most of the country’s dairy farmers. Tail paint is a reliable, cost effective form of heat detection, used by 80 – 85% of dairy farmers, says FIL business and
new product development manager Trevor Gulliver. “Tail paint has come a long way, but it is still a classic example of good old number eight-wire Kiwi ingenuity.” The idea arose in the mid-1970s: house paint applied to the top of cows’ tails to detect rubbing. At first any sort of house paint was used, though not fit for the purpose, Gulliver says. In the late 1980s FIL launched an oil-based paint (1L cans) specifically designed for heat detection, because it lasted on the animal for at least 21 days. “Farmers found the
tin and brush application fiddly and time consuming, and Te Puke dairy farmer Doug Pamment challenged FIL to come up with something that would make the job easier. The answer was relatively simple: a brush on a bottle,” says Gulliver. This innovation launched the Tail Mark applicator bottle with a specially designed brush attached at the head. “We launched Tail Mark at the National Fieldays in 1995… and had never seen such high demand for a new product.” In 1999 came another colour and name change
to Tell Tail, a fluorescent paint intense in colour, which enabled the farmer to identify cycling cows more easily, even in poor light. Now in 2013 Tell Tail remains largely the same, though Gulliver says there is a gradual shift towards water-based paints which,
Higher-tech method pays off AT PUTARURU, the Schere family stopped using tail paint about a year ago and started using Milfos Heatime collars. Third generation farmers, the Schere’s have four farms milking about 1500 cows. Jack Schere says they made the change because being a high input farming system they were struggling with getting cows in calf and wanted to use better technology to detect heat. He says Heatime also detects changes in rumination, a critical sign of a cow’s wellbeing before and after calving and mating. Heatime collars are accurate
and labour-saving, Schere says. “We have a small labour force and we’ve saved time by not having to apply tail paint; we only have to put collars on heifers once each season. We also get pre-mating data from the time cows are calved, which is a lot more accurate and we save time not putting cows up for insemination that don’t need it.” After only one year, Schere says the effects on production have been outstanding. “We’ve increased our in-calf rate and get them in calf sooner, so more days in milk. Our empty rate went down from 16% to 9% last season. We don’t need
a bull anymore because all the cows are AI, which also gives us higher value stock. “Yes, it costs, but you appreciate it once you start experiencing the benefits; it essentially starts to pay for itself,” says Schere. GEA managing director Jamie Mikkelson says it is critical to get heat detection right and think carefully about what method you’ll use this season. “Sticking with tail paint might be the best solution for you or perhaps this is the season to look toward a higher tech option, such as collars, to boost your in-calf rates.”
Above: Tail paint is one true, albeit somewhat low tech, method that has a long history in New Zealand. Right: Heat time collars work by monitoring activity and quantifying each cow’s movement.
applied to a cow and given five minutes to dry, will handle up to 25mm of rain without washing off. “We’ve always worked on the philosophy that if we get it right for cows then we get it right for farmers. FIL is the only New Zealand company currently manufacturing water-based tail paints. The 2L bottles fit neatly into a back pack which has its own draw tube and specially designed brush head for ease of application; this system is perfect for those farmers operating rotary sheds.”
Newborn calves at your place? Tag your animals All newborn cattle must be tagged with a NAIT approved RFID ear tag before they are six months old, or before they move off farm – whichever is soonest. Bobby calves going direct to slaughter are exempt. Register your animals Once tagged, you must register all your calves in the NAIT system within one week, or before they move off farm – whichever is soonest. Registration links individual animals to tags in the NAIT system so they can be traced.
To find out more go to www.nait.co.nz or call NAIT on 0800 624 843
Dairy News july 23, 2013
46 // calving
US study underscores nutrition needs Proper nutrition for calves from day one can lead to better milk yield, according to a US study.
A US study of early-life nutrition of calves and its implications on milk production is reinforcing the need for correct nutrition from day one. In his thesis for his PhD, Fernando Soberon,
Cornell University, New York, investigated the relationship between nutrient intake from milk replacer and pre- and post-weaning growth rate with lactation performance.
The evaluation of at least 1800 first lactations resulted in a strong relationship between average daily gain (ADG) preweaning and milk production: for every additional kg of ADG pre-weaning
first lactation milk production is increased by 850kg. “The relationship is equally strong when assessed by energy intake above maintenance from milk replacer during the pre-weaning John Palamountain period,” he says. accounted for 22% of the According to Soberon, variation in first-lactation the preweaning manmilk yield as analysed agement of dairy calves with the TDM. over the last 30 years has Soberon says the focused on mortality, early weaning, and rumen results indicate that increased growth rate development. Recent studies suggest that nutri- before weaning results in some form of epigenetic ent intake from milk or programming that is yet milk replacer during the to be understood, but has preweaning period alters the phenotypic expression positive effects on lactation milk yield. “This analfor milk yield, he says. ysis identifies nutrition He investigated the and management of the relationship between preweaned calf as major nutrient intake from milk environmental factors replacer and pre- and influencing the expression post-weaning growth of the genetic capacity of rate with lactation perthe animal for milk yield.” formance in the Cornell Animal health comdairy herd and on a company Palamountains says mercial dairy farm. the study results reinThe analysis used force the need for proper traditional 305-d firstnutrition for calves from lactation milk yield and day one. residual lactation yield Managing director estimates from a test-day John Palamountain says model (TDM) to analyse the lactation records over its product CalfBoost is tailor-made to ensure multiple lactations. The nutrients essential for overall objective of the early life stages of calves calf nutrition programme are absorbed by the digesin both herds was to double the birth weight of tive systems. Palamountains Calf calves by weaning through Boost is scientifically increased milk replacer formulated supplement and starter intake. encourages healthily In the Cornell herd, growth with term preweaning ADG ranged benefits which will be from 0.10 to 1.58kg, and more evident at weaning was significantly corretime and leading into lated with first-lactation the heifers first years yield: for every 1kg of preproduction, he says. weaning ADG, heifers, on “Omega 3,6,& 9 average, produced 850kg fatty acids together more milk during their with both oil & water first lactation and 235kg soluble vitamins provide more milk for every Mcal the means for the of metabolisable energy physiological system to intake above maintebuild muscle, control nance. inflammation and help In the commercial joint and connective herd, for every 1kg of tissue heal and recover preweaning ADG, milk from stress. Essential yield increased by 1113 fatty acids with vitamins kg in the first lactation and minerals help with and further, every 1kg of body growth and hormone prepubertal ADG was development. Healthier associated with a 3281 kg stock will give you better increase in first-lactation milk yield. Among the two long term returns and much better stock health.” herds, preweaning ADG
Dairy News july 23, 2013
machinery & products // 47
Better way to keep silage stack covers down TONY HOPKINSON
A THROW away remark – “there has to be a better way” – by Toni Johnson while helping her father place tyres on a silage stack cover, led to one of the best innovations at National Fieldays. Aqua Anchors are either 14m or 16m long and 75mm or 65mm sections of lieflat hoses hermetically sealed at both ends and filled with water. They lie over and around the edges of silage stacks to hold the cover in place and keep the crop from the elements. They replace traditional tyres. A patent is pending. “I am only 48kg soaking wet so lugging tyres and getting splashed by all
the vile accumulated water and debris, like everyone else who has covered stacks, got me thinking,” said Toni. Working with her Dad, Alan, who has a mobile carpentry business and his friend Dave Saunderson, another builder, they came up with Aqua Anchors. They are laid across the stack empty then filled with water. “We believe 14m or 16m lengths will cover most stacks and if the stacks are smaller the hoses can be doubled around. And they are UV treated,” said Dave. Using a flexible hose (12mm garden) with a Hansen 25mm trough fitting, the water goes through a socket with a non-return valve into the Aqua Anchor. With a
“I am only 48kg soaking wet so lugging tyres and getting splashed by all the vile accumulated water and debris, got me thinking.” manifold several anchors can be filled simultaneously depending on water supply. Normal supply should fill each Aqua Anchor in five minutes or less. The fitting pops from the socket when the Aqua Anchor is filled. “We recommend that after filling a little water is removed to allow for expansion in the heat of the day,” said Alan. If the Aqua Anchors are accidently run over by a tractor or vehicle the socket will pop out and is easily replaced. After the entire crop has been fed out the Aqua Anchors are drained by
holding the non-return valve open with a stick or small bolt. They can then be rolled and stored. One Aqua Anchor roll 75mm x 16m weighs 9kg empty and 88kg full (or, full, the same as 10 tyres and empty, one tyre). Price: 14m rolls of 75mm and 65mm, $29.95+GST and freight; 16m rolls of 75mm and 65mm, $34.95+GST and freight.
Toni Johnson fills water into Aqua Anchors.
no pests, chemicals
Tel. 0800 NO TYRES www.lagoonltd.com
TYRES ON silage stacks are an eyesore for the rest of the year. They collect rain, harbour mosquitoes and leach chemicals into the soils and waterways. They
can also be breeding grounds for rats and possums. Tyre collection companies will collect unwanted tyres, which may not be burned or sent to landfill.
ADR 500 Effluent Screening Plant
COVERED BY N.Z. PATENT APPLICATION No. 591985
THE HEAVYWEIGHT IN POSTDRIVERS
☐ ✓NEW ZEALAND MADE ☐ ✓12 MTH WARRANTY ☐ ✓PROVEN FOR 35 YRS HEAVY DUTY PULLEYS
r All plant and pumps very low kW r Self cleaning screen r Self cleaning ponds
r Effluent is clean enough to be pumped into a pivot system if required r Screens out everything bigger than 1 mm
Pluck’s LP35E Even Cover Effluent Irrigator Covered by:
PATENT No. 578084
r No dark strips down the paddock
Applied Depth – Depth 54 0 –5 32 No 1 Overlap mm 0
just 5 mm applied depth!
Test 1
Test 2
Test 3
••••• • • • •• •• • • • • • • • • • •• • • • • • •
–20
–16
–12
–8
–4
0
Distance (m)
4
8
12
16
•
20
r No puddles left behind r Meets even the toughest New Zealand Effluent Enviro Standards
DOUBLE SKINNED BEAM
r Has the Most Even Rain Cover over wetted width in New Zealand by far
VARIABLE RANGE WEIGHTS
SAFETY CAP
Take your Effluent Pond from crusty to aerobic from this …
using one of these:
to this …
All the bearings and seals are above the water line.
The EPS Stirrers come in a range of sizes to suit anything from your sump to a huge pond.
Call us now to find a distributor and installer in your area
☎ 0800 476 868 or visit www.kinghitter.com
0800 PLUCKS 0
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0
7
5
8
2
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www.plucks.co.nz enquiries@plucks.co.nz Main South Road, Rakaia 7710 Mid Canterbury
Dairy News july 23, 2013
48 // machinery & products
Calf feeding made easy A RETRO-FIT device called Milk Bar Pump n Go allows owners of Milk Bar Mobile calf feeders to more easily handle and pump milk at their calf sheds. Milk Bar founder and designer Ross McInnes says economy and ease of use were high on his list of design criteria. Also important was not having
Milk Bar Pump n Go
! Y A H
farmers doubling up on equipment used only four months in each year, good access to the battery charger (the pump is, of course, battery powered) and easy cleaning. Simply pull the trigger on the nozzle and get to work filling fence-hung feeders. A flow meter ensures no guesswork.
TIME IS RUNNING OUT ON OUR 1% FINANCE OFFER. HURRY! DEALS END SOON!
The Milk Bar Pump n Go retro-fits any existing Milk Bar mobile tank and is fitted with the pump, flow meter, trigger and battery. The pump shifts 45L/ min. Particular care was taken to use a pump that did not pump too fast and damage milk by separating out the fat particles. (Fat is a vital energy source for calves and they will not thrive if they
cannot digest the milk fat.) The pump sits above the tank and out of the milk and is cleaned by running water with an alkali detergent through the pump. The flow meter has a large sight panel and is sturdy to withstand the rigours of calf rearing. Price $1299.99 incl. GST Tel. 0800 104 119
The GVL team at the Hamilton Rumenox launch: Arran Wall, Aaron Gill, Derek Moore and John Munro.
New technology, greater value THE NEWEST entrant to the animal health industry is
introducing new technology it says offers greater value for farmers. Glenmark Veterinary Ltd technical director Dr John Munro says some products entering the market do nothing more for New Zealand farmers than the old ones. “We are determined to introduce new technologies that offer real value to our farmers.” The company’s first offering, Rumenox, a bloat control and ketosis treatment, embodies extensive work on the concept of using volumetrically measured dry-flowable granules. A new patented process has been used to marry this technology to compounds for use in the animal health industry.
* E C N A N I F
“We are determined to introduce new technologies that offer real value to our farmers.”
CHAINLESS 8000 TRAILED 4-BALE FEEDER
CHAINLESS 4000 TRAILED 2-BALE FEEDER
CHAINLESS 2000 LINKAGE FEEDER
ROUNDS & SQUARES
ROUNDS & SQUARES
ROUNDS & SQUARES
SL700X TRAILED 2-BALE FEEDER
SL350 LINKAGE FEEDER
SL450X LINKAGE TROUGH FEEDER
ROUNDS
ROUNDS
ROUNDS
* Place your order between now and 31 July 2013, and pay just 1% interest on your finance. Valid only while stocks last.
Call for participating dealers. Valid only while stocks last or until 31st July.
TERMS AND CONDITIONS: Interest rate is 1% p.a. over an 18 month term with 25% deposit and full GST upfront. Repayments include a $250 document fee and $20 PPSR fee, payable over the term in three equal instalments in months 6, 12 and 18. MARAC Finance Limited normal lending criteria applies. Offer applies to all new Hustler Balefeeders purchased between 25 March 2013 and 31 July 2013 (while stocks last), and is not in available conjunction with any other offer. [MARAC Finance Limited is a subsidiary of Heartland Bank Limited – a 100% New Zealand operated, controlled and managed bank.]
Call or email today to discuss 0800 487 853 sales@hustlerequipment.co.nz
www.hustlerequipment.co.nz/finance BAND12251
Rumenox is a concentrated product in a dry flowable granular formulation, described easy to use and meeting strict technical criteria. As Rumenox is used in water dispensing and drenching systems, it is critical the active ingredient stays suspended in drinking water for extended periods of time. Positional stability trials show levels in drinking troughs after dispensing through water reticulation were accurate for the 62 days (two months) of the study, GVL says. This is longer than any published data for any other water insoluble product. As a best practice, an agitation system should be part of all dispensing systems, hence an air agitation system is also being offered to farmers by GVL. Rumenox is registered for the control of bloat and for the reduction of ketosis. GVL says the product’s use as a bloat remedy is gaining high acceptance as it stops bloat before it starts, by reducing the amount of gas formed. A significant reduction in ketosis occurs for the same reasons, because with the use of Rumenox the energy producing bugs find the rumen environment more favourable than the gas producing bugs. Rumenox was launched recently at meetings of veterinarians and producers. New Zealand Sportsman of the Year Mahe Drysdale was guest speaker. Rumenox, a vet-only product, comes in 12kg containers containing 12,000 doses.
Dairy News july 23, 2013
machinery & products // 49
Fencing gear driven to a new level low points on a fence line, where they are subject to lift and [would otherwise] need special footings.” A POST wedge, trianguThe wedges (galvanlar steel post reel holder ised) are nailed to the and multi-wire treadlower section of the post in steel post launched at National Fieldays embody and, once driven, their shape diverts feedback from soil, stones or customers, other obstrucfarmers and tions. The contractors, number needed says the maker, for each post Robertson is decided by Engineering. the fencer, The products depending on are branded the strain the Strainrite. Brian Collins post will come General under. Price $4.00 incl. manager Brian Collins GST. says the new post wedge, The post reel holder attached to the bottom of can be set at any height on posts before driving, prea standard with a locking vents them lifting and pin, to attach a reel. “With twisting – “a simple idea more clips several reels that’s ideal when posts can be attached,” says Colare driven into dips or tony hopkinson
lins. “There is a ring on the back for attaching other fences.” Strainrite’s multi-wire tread-in steel post suits multi-wire electric fences. It can be shifted while the fence is electrified, helped by a well-placed insulated section with a hand grip. It carries tape and electric wires. The angled clip at the top carries 40mm
tape and the four clips are angled so that tapes do not drop out when the fence is being shifted. The shaft is made of galvanised spring steel and the foot is pressed form steel shaped for good ground retention. Price $36.00 for 10 incl. GST. Tel. 04 524 9032 www.strainrite.co.nz
Robertson Engineering owner Maurice Wooster with the multi-wire tread-in steel post.
New post wedge from Strainrite.
FARM HANDLING SOLUTIONS
MERLO IS ONE OF THE WORLD’S LEADERS IN THE DESIGN AND PRODUCTION OF TELESCOPIC HANDLERS TURBOFARMER
34.7 PLUS
Specifically designed for use in the agricultural sector, allowing operation in confined spaces and coupled with excellent towing capabilities. • 40Kph. HST • Ring of steel protection
• 7-10m Reach • 3.4-4 Tonne Capacity
Post reel holder
Total Quality Boots
Built for all day comfort with Anti-Slip properties, theyer are cool in summ and warm in winter
Jaylor improves overall animal health and increases milk production
The Jaylor Vertical mixers are used to blend all necessary feeding components into a balanced Mix Ration offering control over what your cows eat and providing the nutrition they require.
A special Polyurethane blend makes these Gumboots ideal for in the dairy shed and out on the farm
m under Pricing fro
$60,000
D BOOT TESTIMONIAL Taranaki Dairy Farmer Hayden Lawrence says: “They give great comfort and grip, and stand up to the punishment. I would recommend Nora Gumboots to anyone who wants a bloody good pair of gummies!”
For your local outlet phone
0508 GUMBOOT | 0508 4862668 or visit www.nora.co.nz p 07 889 7902 e sales@nora.co.nz EUROPEAN MADE
INDENT PRICING AVAILABLE**
R
PUTTING THE ‘TOTAL’ INTO TMR
TM
** INDENT PRICING ON JAYLOR ENDS 20TH AUGUST 2013
MODELS: JL-4425 - Single Auger 13m3 JL-4750/JL-4850 - Double Auger 21.4m3 / 24.1m3 Easily mixes palm kernel, apples, kiwifruit, barley straw, molasses, silage & hay etc
FINANCE FROM
* % 3.95
1/3RD DEPOSIT +GST IN THE 3RD MONTH *Normal lending criteria & conditions apply
Contact your local Jaylor & Merlo dealer for more information
www.powerfarming.co.nz
Dairy News july 23, 2013
50 // machinery & products
Feed trailers raise efficiency, cut waste tony hopkinson
PKE FEEDING out effi-
ciency is raised and wastage reduced with a newly available range of feed
trailers imported from the Philippines by Winton Stock Feed, Southland. The company makes them there in its own factory. The XL Multi-Feed trailers are for carrying bigger loads. They have a galvanised frame and bin, are wide and scalloped, allowing cows easy access. Says company principal Nelson Lindsay, “I could see a need to get away from using ATVs to haul
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INTRODUCING
THE TARAGATE™ FLOOD FENCING SYSTEM PATENT APP
PKE trailers, and to use tractors to do the loading. Trailers [can be] too small, farmers filling them to the brim and stock wasting material by tipping it over the side.” The trailers are 6.9m, and the bins 5m long, 1.58m wide and holding 2 tonnes of PKE or three large bales. They have a quick hitch to attach to the tractor. “With the extra width
it is easier to load material or bales and it gives cows greater access.” The trailers have bigger tyres than are commonly found. They can also be used as mobile troughs for feeding molasses. Starting ten years ago as a feed mill making nuts and pellets, Winton Stock Feed has grown to be one of New Zealand’s largest independent importers
Contact Taragate for further details on this revolutionary new fencing system. Taragate Ltd
RD2 Hamilton, New Zealand Phone 07 843 3859 Fax 07 843 3952 Email info@taragate.co.nz Web www.taragate.co.nz
of molasses and PKE for feeding stock. The company has a nationwide dealer network. “We source our supplies from Thailand, Philippines and Fiji and bring it to seven ports in New Zealand and immediately
into our distribution network,” says operations manager Paul Jackson. The company runs businesses and vehicles in Fiji and the Philippines, adjacent to sugar mills, the source of molasses. This comes in flexible tanks inside a frame and in
6.096m containers. After use the flexi tanks are washed and returned. All products are sold direct to farmers. Price: $5900+GST. 0800 MOLASSES (0800 6652 7737) www.wintonstockfeed. co.nz
Savings freight charges, helping locals MOLASSES CONTAINERS only 66% full but at their allowable weight limit were wasting money for Winton Stock Feed. So the company’s XL Multi-Feed trailers – cheaper to make in the Philippines – help amortise the cost of shipping molasses by riding on top of the containers. When construction started it was taking six local welders 10 days to make one trailer. So Lindsay involved a Philippine government agency, developing vocational skills among blue-collar workers from whom he recruited his six welders.
He questioned them about their eyesight because of how he saw them working, initiating and paying for eye testing and spectacles when needed. After six weeks training the skills investment paid off when the now six certified welders were able to build a trailer in three days. And they have enhanced their employment skills and opportunities because of Lindsay’s initiatives. “Our trailers are now built to a high standard which is satisfying for me and my company as well as the workers that built them.”
The trailers are made in the Philippines.
Gumboot firm on slick, wet surfaces A NEW gumboot from Skell-
All new quick and easy fencing system for the safe and environmentally sustainable fencing of flood-prone areas.
The XL multi-feed trailers are for carrying bigger loads.
erup has lots of grip on smooth, wet surfaces. And notably it has a trademarked Skwee-G sole resistant to chemicals and oil. The Aqua-Terra solves an old problem: how to keep both feet firmly and comfortably placed on slippery concrete, day
in, day out, says Skellerup national manager Perry Davis. “Anyone who has ever spent any length of time in the dairy shed knows how slippery it can get, and how important it is to have the right sole for these conditions.” The Aqua-Terra has a super-flexible rubber upper designed for comfort and unrestricted movement. Inside, it has a ComfortForm steel toe cap; a fast drying, anti microbial and anti
Pumps, Stirrers & Hydrants 0800 686 334 www.numedic.co.nz MANUFACTURE AND DESIGN
AGENTS NATIONWIDE, EXPORTING WORLDWIDE
fungal polyester lining and an extra layer of foam over the foot for increased warmth and comfort. Like all Skellerup boots, it is assembled by hand and shaped specifically for typically wide NZ feet. “This is a no-nonsense boot built to reduce the aches and pains of standing on concrete every day while making sure the person wearing it stays standing,” Davis says. www.skellerup.co.nz
New Zealand Manufacturers & suppliers of: • Strongest, most durable pumps available • Efficient & robust pond stirrers • Pontoons & Hydrants • Evenspread low application travelling irrigators • Stationary irrigators
SAVE TIME AT CALVING TIME VISIT YOUR RD1 STORE
OR ORDER BY PHONE
OR WE CAN DELIVER
0800 731 266 │ www.rd1.com