Dairy News 12 Nov 2013

New Zealand Grassland Association Conference. PAGES 5-8

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NOVEMBER 12, 2013 ISSUE 302 // www.dairynews.co.nz

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DAIRY NEWS NOVEMBER 12, 2013

NEWS // 3

Japanese farmers bank on state support to evade free trade SUDESH KISSUN sudeshk@ruralnews.co.nz

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NEWS ������������������������������������������������������ 3-21 OPINION ���������������������������������������������22-23 AGRIBUSINESS �����������������������������24-27 MANAGEMENT ������������������������������ 28-37 ANIMAL HEALTH ������������������������� 38-44 MACHINERY & PRODUCTS ������������������������������������� 45-50

JAPANESE FARMERS, sceptical about a free

trade deal, are banking on the Government to exclude the sector from the Trans Pacific Partnership (TPP).

The head of Japan’s umbrella dairy organisation says the industry is “really worried” about TPP’s impact on the rural sector where dairy farmers form an integral part of society.

Hirofumi Maeda, senior managing director of Japan Dairy Association (J-milk) says the industry has made its views known to the Government. If dairy is to be included in the TPP deal, he expects the Government to negotiate with the industry.

“We haven’t heard anything so probably dairy is not an item,” he told Dairy News on the sidelines of the World Dairy Summit in Yokohama earlier this month.

Speaking through an interpreter, Maeda declined to say whether a TPP deal should be sewn up by the end of next month. Most of the 12 countries in the TPP negotiations – US, Australia, New Zealand, Canada, Mexico, Japan, Malaysia, Vietnam, Chile, Mexico, Peru and Singapore – are

hoping to conclude a trade deal by next month.

Japanese negotiators are facing pressure to make concessions, particularly on farm products.

However, the agriculture sector is applying pressure on the Government to protect them. Japanese farmers oppose the TPP, fearing the accord will wipe them out by triggering an influx of cheaper imports.

Some Japanese media reports suggest the Government will be seeking to exempt agriculture – particularly rice, wheat, beef and pork, dairy products and sugar – from the pact.

Last month Japanese Prime Minister Shinzo Abe again pledged to fight for Japan’s trading interests.

Maeda says the industry isn’t keen to pass an opinion on TPP negotiations. “We believe our Government is trying to secure an appropriate position. Therefore they know what’s best for Japan. Whether it concludes quickly is entirely up to our Government. However, we have made our views known and the Government knows what we want.”

J-milk represents dairy farmers, dairy processors and milk retailers nationwide. Japanese farmers produced 7.6 million tons of milk last year, of which 53% (4m tonnes) was used as drinking

AGEING FARMERS FEAR WEALTH EROSION FEDERATED FARMERS Dairy chairman Willy Leferink, who attended the World Dairy Summit in Yokohama, doubts the much-heralded Trans Pacific Partnership (TPP) can be concluded by the end of this year.

Leferink points out that the average age of Japanese farmers is 68. Most of these wealthy farmers don’t want an open market to erode their wealth, he says.

“They strongly feel that opening up their borders suddenly is a dangerous thing to do. I can understand where they are coming from. They are getting a huge milk price right now because of short supply and they don’t want to lose that under free trade.”

Leferink believes there’s no need to rush into TPP. “It’s better to negotiate a good agreement, even if it means it takes a little longer.”

Hirofumi Maeda

milk, the rest for cheese, butter and dairy product manufacturing. The local milk meets only twothirds of the total demand so Japan imports dairy products from Oceania and China.

According to Maeda, Japanese dairying is highly valued by its people. In rural areas effluent from dairy farms is widely used as fertiliser by vegetable, rice and fruit growers. With an ageing rice farmer population, dairy farming is taking up land being yielded by the rice sector.

In many rural towns dairy farmers are playing an active role in their communities, he adds.

“In many rural communities you see only children and the elderly because young parents leave home to work in nearby cities.

“In these circumstances, dairy farmers play important roles in school parent teacher associations; they serve as volunteer firemen and in some cases, take up politics at the local government level.

“So everyone including the Government has a special feeling towards dairy farmers. If a free trade deal comes in and impacts our dairy industry, it will destroy rural communities.”

• Sudesh Kissun attended the World Dairy Summit with assistance from Asia NZ Foundation. @dairy_news

facebook.com/dairynews

DAIRY NEWS NOVEMBER 12, 2013

4 // NEWS

for Japan to Monaghan explains Time move on, join TPP meat co-op entry

DAIRYNZ CHAIRMAN John Luxton believes there is “genuineness”

ANDREW SWALLOW andrews@ruralnews.co.nz

FONTERRA DIRECTOR John Monaghan, who has made himself available for a director’s position with meat cooperative Alliance, isn’t ruling out staying on with both cooperatives should Alliance’s board appoint him.

Having had his candidacy as a farmer-elected director rejected by the meat co-op’s board, a shareholder resolution that he be appointed as an independent has now been tabled for Alliance’s annual meeting in December.

“It is very common for lots of directors to make a [worthwhile] contribution on up to three or four boards,” Monaghan told Dairy News.

“I might have to get a little more help in my own farming business, in order to do a little less, but that is all manageable.”

Monaghan says if elected to Alliance’s board, he looks forward to sharing his

John Monaghan

thinking and finding solutions to the meat industry’s issues.

“I would like sheep and beef farmers to think of me as someone who might just bring some fresh thinking to the table that might help turn things around for them and for New Zealand. That is certainly my only motivation.

“I don’t want to go on the Alliance

board as an adversary. I want to be someone who has observed and been part of a positive transition in the dairy industry over the past few years….

“The agriculture sector in New Zealand and the economy have huge opportunities and we need to improve the lot of sheep and beef farmers.

“When that happens, just like dairy, the benefits will flow through to the rest of the economy. The thought of that excites me.”

Monaghan, a former Fonterra Shareholders Council chairman, was elected to the Fonterra board in 2008.

He chairs the board’s cooperative relations committee and sits on the appointments, remuneration and development, and the governance and representation committees.

He is also a director of CentrePort Ltd and CentrePort Properties Ltd. He has farming interests in the Wairarapa and Canterbury regions. @dairy_news facebook.com/dairynews

at Japanese government level about being part of the Trans Pacific Partnership (TPP). And this is useful in that it will encourage the US to take a more holistic view of the proposal.

“There is strong recognition that 20 years of not making [necessary] structural changes to their economy [gives] the present government a very strong mandate for change,” Luxton says. “Every comment you can garner from the political process is that there is determination for Japan to become part of TPP.” But he says there is recognition that some special “transitional” arrangements may be necessary to assist the Japanese farmers over time to adapt to a more open market environment. He believes Japan’s liquid milk industry is unlikely to face any international competition.

The largest proportion of the milk produced in Japan is goes into fresh milk supply so, looking forward, liquid milk will continue to have a strong market in the country, he adds.

“At certain times of the year they are having to ship milk from Hokkaido to the main island.” The Japanese are looking at ways to enable small landholdings to merge in an attempt to improve dairy production.

Luxton, who attended the recent World Dairy Summit in Yokohama, says he held talks with government and industry officials.

Japan faces the problems of ageing dairy farmers and falling production.

Luxton says on a large proportion of Japanese land, “all of the island south of Hokkaido”, about 90% of the feed supply for their animals, which are in feedlots, is imported mainly from the US. “While they have very sophisticated processing capability, which is advanced as anywhere in the world, as far as dairy products is concerned there is a challenge for them to get fresh milk supply.” – Peter Burke

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DAIRY NEWS NOVEMBER 12, 2013

GRASSLAND ASSOCIATION CONFERENCE // 5

Science shortfall a ‘scandal’ ‘Bay of Diversity’ was the theme for the New Zealand Grassland Association’s annual conference last week in Tauranga. Andrew Swallow relays a few of the many farm management, science, agribusiness and policy points presented over an intense three days.

ARE OUR primary industries and

hence entire economy heading for a fall due to lack of science funding and capability? Quite possibly, judging by papers presented on the first day of last week’s New Zealand Grassland Association conference in Tauranga.

“There is a huge disjunct between our export earnings and the [science] capability we are building within New Zealand,” warned industry leading scientist and consultant John Hay during his keynote Levy Oration speech to the conference.

In nine years, 2002 to 2010, just 74 of 6227 PhDs (doctorates) completed were in agriculture, horticulture or environmental studies. “So 71% of New Zealand’s overseas export receipts, excluding tourism, rest upon 1.18% of our intellectual capital creation,” he warned.

What’s more, some of those 74 doctorates were gained by students from overseas who did not stay in New Zealand on graduation, and in

two of the years there wasn’t a single New Zealander among them.

Hay relayed Crown Research Institute recruitment figures as further evidence of the mismatch between scientist supply and demand. CRIs employ two-thirds of the nation’s publicly funded science researchers and 57% of those with doctorates now come from offshore. “Only a few of them are returning Kiwis…. I flag that as another scandal,” he said.

Hay stressed his presentation was his personal opinion, and not that of the minister or ministry given his role as chairman of the Ministry of Business, Innovation and Employment (MBIE) science board.

However, he did comment that the results of MBIE’s last funding round seemed to come as a “shock” to most universities.

Applicants needed to demonstrate close connections to industry and hence a clear path to market for the research to be funded, yet most failed

to do so and didn’t get funded. “One highly ranked university obtained funding for only one of its 24 proposals. Others had similar results.”

The path-to-market requirement for MBIE funding had been clearly and repeatedly communicated and won’t be changing so institutions had better heed it in future given the cost of “such extensive but unrewarding bidding, both in terms of time, and scientists’ morale,” he said.

Hay called on all parts of the science community, especially the Royal Society, to challenge funding models and levels, and groups such as the Grassland Association to highlight the risk in land use change and intensification without adequate research into the long-term implications.

“We must continue to draw attention to the woefully inadequate supply of New Zealand-trained relevant science and agriculture graduates. Our sector is indeed at a critical point in its history.”

FORGET SUCCESSION THINK INNOVATION AN AGEING farming population isn’t the problem many make it out to be, and in fact, it’s an opportunity, says New Zealand Grassland Association vice president Warwick Lisamann.

“We have to stop focussing on the succession element for

those in their 50s and 60s and encourage them to innovate because this is the time they should be doing it,” he told delegates at last week’s NZGA conference in Tauranga.

Farmers in that age bracket are generally financially secure,

NZGA vice president Warwick Lisamann (left) with Levy Oration presenter John Hay.

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DAIRY NEWS NOVEMBER 12, 2013

6 // GRASSLAND ASSOCIATION CONFERENCE

Scene setter stresses regional issues BAY OF Plenty Regional

Council land management manager Simon Stokes set the scene for the conference, outlining the region’s society, economy and environment.

Just over half the region’s 1.2mha is indigenous vegetation, 24% exotic forestry, 21% pastoral and 2.5% cropped/horticultural.

Nearly 2% is lake and the balance urban. It has about 4.2% of the national dairy herd but cow numbers are in decline, as are all livestock sectors.

Soils are mostly pumice, and even those not classified as such typically have considerable volcanic content. “This is a

major issue for the region because of their leakiness and lack of clay, which is such an important ingredient for soil structure and soil activity.”

Erosion is a serious risk, as Stokes illustrated with an image of a paddock cut in two by a canyon tens of metres deep that opened up during one night of heavy rain.

Water quality is “the number one issue” and declining in nearly all monitored rivers in at least one of four key indicators measured: sediment, nitrogen, phosphate and faecal material. But bad news as that sounds, Stokes

stressed the positive.

“It’s not all four [indicators] which means the story is not all negative and there are excellent examples of positive changes.”

Of the region’s 13 major lakes, water quality is rated as declining in four, stable in five, improving in three and unclassified in one as more investigation is needed.

“The key to this region’s future, the core challenge, is still managing the soil, pasture, crop and stock activity, on a farm and orchard, and you are the critical ingredient to make the impact required now and into the future,”

Simon Stokes

Stokes told the audience of farmers, researchers and agribusiness people.

He urged rapid uptake of known technology and techniques. Farmers need to be “data rich, in real

time,” he added. “Then we will start to achieve the management precision we are looking for.” @dairy_news facebook.com/dairynews

THINK INNOVATION FROM PAGE 5

for entrepreneurs is among those in older age groups.

For those taking the risk to innovate, having a support group of research and technical advice is important, and of fellow farmers to counter tall poppy syndrome.

“There’s a social risk as well as a financial one from innovating…. For some innovation to happen it really needs to be game changing.”

Farmers, through sector levies, are New Zealand’s “biggest investors” in R&D, the start of the innovation process, but overall New Zealand’s investment in R&D in recent years has been woeful compared to the OECD average, Lisamann noted. “This doesn’t bode well for our future, to be honest.”

Results from innovation in agriculture often take time, sometimes decades, to deliver on their potential. Hence many of the productivity improvements of recent years result from innovation and R&D investment decades ago.

Lack of productivity in agriculture is another “misconception” that needs to be countered, he added. Studies of labour and multifactor productivity show farming is, in fact, way ahead of all other sectors in New Zealand.

“Wellington needs to hear the reality and it’s your job to communicate that,” Lisamann told delegates.

DAIRY NEWS NOVEMBER 12, 2013

GRASSLAND ASSOCIATION CONFERENCE // 7

Mixed pastures prove worth MIXED PASTURES

look like becoming a key tool to maintain milk production while slashing nitrogen loss from dairy systems, judging by results of an ongoing trial at DairyNZ’s Scott Farm, Hamilton.

In a case of quality compensating for quantity, cows grazed on six-way mixes of species produced as much milk as those on a standard ryegrass-clover sward, despite the latter producing more drymatter for the first two years of the trial, delegates at the Grassland Association’s annual conference last week heard.

“The fact is we’re getting about the same milk production; we’re certainly not getting any less,” DairyNZ senior scientist Sharon Woodward told the conference in Tauranga.

Mobs of five cows were

grazed for nine day spells on either a mix of perennial ryegrass, white clover, prairie grass, lucerne, chicory and plantain, or a ‘standard’ pasture of ryegrass and white-clover. Three replicates of 0.5ha of each mix were sown using the same establishment process in autumn 2010.

Post sowing the mixed species sward received no herbicide, owing to the herbs in the mix. Despite that, a couple of years into the trial weeds were fewer than in the ryegrass-clover sward.

“Having all the species in there did a bit of a job in terms of competing with the weeds,” noted Woodward.

Pest data has also been collected by a colleague but has not been reported yet, she later told Dairy News.

Both pastures were

Sharon Woodward

given 200kg/ha of nitrogen over each of the first two years, with that cut to 100kgN/ha in the third year. That third year (2012-13) coincided with a drought and, while the data presented wasn’t for the full season (see table), the mixed pasture produced more than the standard pasture, she said.

“The lucerne was particularly dominant in the

third summer with the drought.”

The cows’ use of nitrogen was determined with an indoor trial feeding

Season 2010-11 2011-12 2012-13**

cows either the mixed or standard pasture in March 2012.

Off standard pasture 43% of nitrogen consumed was excreted as urine, compared to 29% off mixed pasture. Conversely just 15% of nitrogen ended up in milk (presumably as protein) off the standard pasture but 29% did off the mixed pasture. Faecal N accounted for 33% and 39% off standard and mixed pastures respectively, with the balance retained in the animal.

But as Woodward noted: “It’s all very well talking percentages…

what we really need to get a handle on is the actual amounts of N in urine.”

They found cows were excreting 100g of nitrogen/day in urine when fed on the mixed pasture, and 200g/day when fed the traditional ryegrass-clover pasture. “So there’s a doubling of urinary nitrogen load on the standard pasture.”

Carbon cycling also appears to be greater under the mixed pasture with an increase in organic matter in the soil recorded.

The data presented at the conference omitted the winter period, but

Pasture available tDM/ha Standard 19.3 15.8 10.9

Mixed 17.9 14.5 11.6

Woodward later told Dairy News there was nothing about the mixed species’ performance or management over that period which would force changes to normal cow wintering systems.

Compromises in grazing timing for both pasture types had to be made during the trial so that they could be grazed simultaneously. Woodward says ideally a faster round would have been used on the mixed species pasture in summer because it was growing more. @dairy_news facebook.com/dairynews

Milk produced* Standard 39.4 45.8 41.2

Mixed 39.8 46 40.8

*kgMS per cow over three grazings of nine days, spring, summer, and autumn. **Spring and summer grazing only due to drought.

Source: Consolidation of two tables as presented by Sharon Woodward, DairyNZ, to NZGA conference, Tauranga.

DAIRY NEWS NOVEMBER 12, 2013

8 // GRASSLAND ASSOCIATION CONFERENCE

Call for all to right wrongs ANDREW SWALLOW andrews@ruralnews.co.nz

NEXT TIME you hear someone complain about the price of milk or food, tell them the facts.

“Point out last year food went up 0.6%, and average incomes went up 4.8%,” New Zealand Grassland Association president Jacqueline Rowarth says.

That was just one of several rallying cries she delivered last week in a broad-ranging address to the association’s annual conference at Tauranga.

Suggestions New Zealand should be all organic or adopt old-style production practices were

slammed, R&D investment way below the OECD average was bemoaned, and Fonterra’s failure to clearly communicate the botulism scare spelt out.

“Could there have been toxin in that powder? Well, bacteria need moisture in which to proliferate so the likelihood of it being toxin was very, very slim, but that’s not what we heard on the media and that was because Fonterra got muddled in their messages.”

She went on to talk about sustainability being about much more than just protection of natural resources.

“It’s economic viability and social acceptability.

Economic viability cre-

ates resilient and profitable organisations which means people want to join them and that is important onfarm as well as in industry.

“And socially acceptable? Everybody can spread the word.”

At current productivity levels twice as much land will need to be farmed to feed the predicted global population of nine billion and yet people still make calls for all organics, or to revert to historic production practices. Rowarth relayed estimates that organic dairy is only 70% as productive as conventional, sheep and beef 60%, and horticulture between 0 and 100%.

“And what we know

about organic milk is that last year processors were losing money on it in the supermarkets…. People make statements about what they will buy and then they make the decision at the last moment based on price.”

Calls to cut waste as a solution to feeding the world were rubbished too.

“We can probably save 20% of food through [reducing] wasteage but it won’t be enough to feed nine billion people.”

The GE debate is “another one that we haven’t grasped properly,” said Rowarth, noting NZGA farmer-member delegates at the World Grassland conference were left asking where the

next step change would come from.

“And that is one of the biggest issues we are facing because most research at the moment is funded to do twiddling round the edge, incremental changes… but where is the step change? We don’t spend enough on research in New Zealand.”

Re-iterating fellow conference speaker Lisamann’s earlier point about lack of R&D spending relative to GDP (see pages 5-6), Rowarth noted Government science advisor Sir Peter Gluckman says small nations such as New Zealand need a greater proportion of GDP to go on R&D than big countries – not less.

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Rowarth says the problem is political. “Research costs are very great in the first few years and you don’t start seeing a profit… in agriculture for ten, fifteen years and how many government terms is that?

Science should be apolitical.”

Too much of available research funding is contestable, she added.

“We should be backing great track-record people and yet we continue to put out calls for research proposals.”

She also suggested some of New Zealand’s

overseas investments would be better made at home, moving produce further up the value chain prior to export.

“We’re really good at processing food in terms of our milk plants; we’re really good at farming our land because we know about it in terms of soils and the role of clover…

“To sell off milk processing plants and indeed our land means that we are missing out on the potential to capture the value chain.” @dairy_news facebook.com/dairynews

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ECHOING EARLIER comments about the dearth of agricultural researchers, Rowarth relayed another alarming statistic for the future of the industry, and its research sector.

Of 2280 university graduates in New Zealand in 2011, only 68 were in agriculture.

Most of those went straight into jobs offering a vehicle and $50,000/year or more, and within five years would be knocking on the door of $100,000, she said.

In contrast, if they’d stayed on to do masters and doctorates and go into research, they might be offered $65,000 for a postdoctorate position in a similar timespan.

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DAIRY NEWS NOVEMBER 12, 2013

NEWS // 9

Fonterra farmers to debate inquiry report FONTERRA SHAREHOLDERS will get a

chance to discuss findings of an independent inquiry into the false botulism scare.

Fonterra Shareholders Council chairman Ian Brown says it will review the report and meet with the Fonterra board later this month to discuss it further.

“Following this we will share our view of the report with our farmer shareholders.”

Brown says that, based on the council’s initial review, the actions required of Fonterra as recommended in the report seemed prudent.

“That the report is public and the inquiry team has recommended that they review Fonterra’s progress on their recommendations in nine and 18 months gives us confidence that there is real intent on Fonterra’s part to improve.

“It is important to note that the independent review identified that the co-op is generally very well run with good people and processes in place.”

The independent inquiry found that a lack of senior oversight of crucial decisions, problems with tracing potentially affected product and belated escalation of the issue contributed to the event in August.

Inquiry team leader Jack Hodder says when fallout occurred from the

precautionary recall Fonterra should have had “more goodwill in the bank than it did”.

The inquiry says Fonterra needs to address a “fortress Fonterra” perception held by a “material proportion of key stakeholders,” by improving its engagement with them.

The “fortress Fonterra” perception was encountered among stakeholders during the board-commissioned inquiry. It was not the inquiry team’s phrase, says Hodder, QC. It was not relevant in the leadup to the recall, but in the reactions of various stakeholders when the crisis hit, Hodder says.

Inquiry committee member Gabrielle Trainor, a communications and crisis management expert, says it has been shown repeatedly that good mutual relations are important in managing any reputational risk. But it is very easy to perceive large organisations as a “fortress”.

The inquiry team addressed the “fortress Fonterra” issue in two of its 12 principal recommendations. It said Fonterra should redefine “the style and substance of its engagement” with stakeholders and the board should review that progress.

It also said the board should accept greater responsibility for developing and maintaining relationships at the most

IN BRIEF TB warning REPORTS OF wild pigs being illegally released and the risky disposal of their remains have prompted a TB warning in Waikato.

Pigs can carry TB and spread the disease when infected carcasses are scavenged by wild animals, mainly possums and ferrets. Bovine TB-infected possums are responsible for the majority of new herd infections in TB risk areas.

Local farmer and Waikato TBfree Committee Chairman John Bubb expressed concern over the reported practices on behalf of herdowners in the region.

“People need to consider the possible consequences of dumping wild pig remains that could be infected with TB,” says Bubb.

“Dairy, beef and deer farmers have too much to lose if their herd becomes infected with the disease. We need to keep TB out of wild animal populations, preventing them from spreading the disease to farmed cattle and deer and threatening farmers’ livelihoods.”

senior levels of Fonterra’s external stakeholders, including in government and media within and outside New Zealand.

Hodder said Fonterra was a “national champion” and there was a sense of ownership of the co-op by

everybody, including those who did not own dairy farms or shares.

“Fonterra is a big economic player in this country so it gets all these expectations dumped on it whether it wants it or not,” says Hodder.

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NEWS // 11

State casts wider net on freshwater issues THE GOVERNMENT

has moved a step closer to legislating freshwater management and setting up national water standards.

Last week the Government released a document to seek the public’s feedback on more detailed proposals for amendments to the National Policy Statement for Freshwater Management.

The discussion document seeks feedback on the Government’s proposals for: 1) a national framework to support communities setting freshwater objectives; 2) explicit recognition of tangata whenua values for freshwater; 3) ecosystem and human health as compulsory values in regional plans; 4) preferred outcomes for ecosystem and human health that apply everywhere; 5) restricted grounds for exceptions to those preferred outcomes; and 6) requiring councils to account for all water takes and contaminant discharges.

Environment Minister Amy Adams says ensuring an ongoing and reliable supply of healthy water is one of the most important environmental and economic issues facing New Zealand. “It is critical we protect and improve the water quality we all care so much about.”

Guy says water quality issues affect everyone.

“We need to work together to create a better way of managing what is New Zealand’s most important natural resource.”

In 2011, the Government required regions to maintain or improve the water quality in their lakes, rivers, wetlands and aquifers.

In March 2013 a document was released outlining the Government’s proposed plan for improving water quality and the way freshwater is managed. In August, the Government announced its intention to create a collaborative planning option for the development of a freshwater plan within a community.

At least 60 freshwater

scientists from public, private and academic sectors nationwide have devised numeric values proposed for national preferred outomes for freshwater. Government ministers have not been involved in the scientific detail of the framework.

The numbers have also been tested with a reference group of water users to make sure they are practical. Further water quality attributes and numbers will be added over time.

The framework will be underpinned by information that supports regional decisionmaking, including the environmental, social and economic impacts of any proposed objectives and limits, Adams says.

“As a minimum, councils still have to maintain or improve water quality, but we are proposing a safety net in national bottom lines for ecosystem and human health,” Adams says.

“These are to safeguard aquatic life in our water bodies, and ensure we can enjoy our water for activities like boating and wading.

Says Nathan Guy, “We expect people to debate these bottom lines – that’s the nature of science – but the freshwater scientists’ numbers we are releasing today also reflect the important role of value judgements in choosing how we use our fresh water.

“If we can get agreement now, there will be less arguing and litigation over regional plans and resource consent applications.

It will give people more certainty about what is allowed and what is not, and this will save time and money.”

The discussion document, the draft amended National Policy Statement for Freshwater Management and supporting documents and studies are available at: http://www.mfe.govt.nz/ issues/water/freshwater/npsfreshwater-managementamendment-proposals.html Officials from the Ministry for the Environment and Ministry

for Primary Industries will be holding public meetings and hui around the country during November and December.

Dates and venues will be posted on the Ministry for the Environment’s website.

The Government has also published a video scribe outlining its vision for freshwater management in New Zealand.

The Government is seeking feedback on its proposed changes to freshwater management.

DAIRY NEWS NOVEMBER 12, 2013

12 // NEWS

Long road to winning back Chinese consumers SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA CHIEF

Fonterra chief executive Theo Spierings and Mengniu Dairy chief executive Yiping Sun in Yokohama.

executive Theo Spierings says rebuilding consumer confidence in China will take time.

He says while the co-op has fixed its relationship with Chinese regulators and key customers, winning back confidence of

Chinese consumers is a work in progress.

Speaking at the recent World Dairy Summit in Yokohama, Spierings referred to Fonterra’s fourstep plan following the botulism scare: recall, review, recover and rebuild.

“We’re now in the rebuild phase; it starts first with local authorities, regulators, customers and

then consumers, which is much more difficult,” he says.

Spierings, who flew to China after his presentation at the summit, later told Dairy News that direct contact with regulators and customers made rebuilding easy. “But we don’t have direct contact with consumers so that rebuilding phase takes

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countries.

Spierings says while many processors are fixated on infant formula, he believes ‘ageing nutrition’ will emerge as the biggest market, especially in Japan.

Spierings, who has been in the dairy industry for 30 years, recalled his first posting to Indonesia in 1991. “I was still writing on blue airmail envelopes with blue pen to my parents in the Netherlands. We were not connected at all.”

Today Indonesia is poised to become the seventh-largest economy in the world and the whole world is connected by internet and social media.

“I never imagined back then that Indonesia would one day become one of the four fastest-growing dairy markets.”

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In his address at the summit, Spierings singled out China, India, Brazil and Indonesia as four key markets.

China will have at least 175 million people aged over 60 by 2020. In Brazil, 2.5 million pizzas are eaten every Sunday evening and there are 70 million milkbars operating in Indonesia. These markets offer opportunities for dairy players, Spierings says.

While India hasn’t opened up its market, once it does there will be huge opportunities there too.

The population in these four countries will jump from 2.4 billion to 4.2b by 2025; there will be 130 million new babies born and 400m will move into the ageing group in these four

FLUID MILK consumption is declining worldwide while cheese and yoghurt consumption is up, last month’s World Dairy Summit in Yokohama heard.

International Dairy Federation Japan chapter president Kenichi Unno says since the 1960s in traditionally milk-drinking countries in Europe, North America and Oceania, and since the 1990s in Japan, fluid milk consumption has been declining. But cheese and yogurt consumption is increasing so milk and dairy products as a whole are still increasingly consumed.

“But the increase of cheese and yoghurt is supported by new merits such as taste and effect on intestinal flora, and differs from the long advocated benefits commonly applicable to milk and most dairy products,” he says. The World Dairy Summit attracted 2000 delegates from 60 countries.

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DAIRY NEWS NOVEMBER 12, 2013

NEWS // 13

Takeover battle set to drag on STEPHEN COOKE

BEGA CHEESE has

been given the green light by the competition watchdog to take over Warrnambool Cheese and Butter, but Canadian processor Saputo and Murray Goulburn are still waiting for approval.

The Australian Competition and Consumer Commission (ACCC) would approve a Bega takeover, saying there was limited overlap between Bega and WCB in relation to the acquisition of raw

a process which could take up to six months, which applies a net public interest test in contrast to the ACCC’s focus on competition.

However, the ACCC will remain closely involved.

The tribunal does not have its own permanent staff and the ACCC will be required to submit a report detailing its views and any concerns about impacts to competition.

Saputo sought approval from the Foreign Investment Review Board for its proposed takeover but had

Although share prices have been changing daily since Saputo made its intentions known, the Bega price remains very much in the ballpark. milk in the dairy region in southwest Victoria as well as areas of northern Victoria. Fonterra recently bought a 6% stake in Bega.

However, ACCC chairman Rod Sims has said it has concerns over Murray Goulburn’s proposed acquisition.

MG, which withdrew from its takeover bid of WCB three years ago after the ACCC released a preliminary report outlining issues of concern, has chosen to bypass the ACCC this time.

It will seek formal merger authorisation through the Australian Competition Tribunal, in

not heard from it at the time of its initial offer.

Although Bega has official approval, it must ultimately win the approval of shareholders for its proposal.

Its original offer for all WCB shares at a price of 1.2 Bega shares plus A$2 cash for every WCB share continues to rise as its share price does.

It leapt 26% in the week after it gained ACCC approval and Fonterra bought a 6% stake.

Although share prices have been changing daily since Saputo made its intentions known, the Bega price remains very

NITROGEN LOSS ON THE RISE IF YOU don’t get rain within a day or two of applying urea 20-30% of the nitrogen is lost as ammonia, Ballance Agri-Nutrients’ science manager Aaron Stafford told the Grassland Association conference.

And new research shows much of that happens within hours of applying the fertiliser, faster than was previously thought.

“Basically, it needs to be raining at the time of application to minimise ammonia loss from urea,” says Stafford.

Using urea coated with urease inhibitor Agrotain, which Ballance sells as Sustain Green, on average halves the loss to ammonia, he adds.

The extra cost of $3.20/ha for a 25kgN/ ha application with the product compared to untreated urea, is easily offset, he calculates, as 20% of 25kg is 5kg, and halving that loss means 2.5kg/ha more N for the plant, which, at a typical 10:1 response means 25kgDM/ha more pasture. Converted to milk worth $7/kgMS at one kgMS per 12.5kgDM produced, that’s an extra $14/ha for a cost of $3.20/ha.

much in the ballpark.

Even if Saputo and Murray Goulburn win official approval, they must overcome similar hurdles.

Saputo is seeking 50.1% of WCB and 46% is owned by its competitors Bega, MG and Lion, which bought 10% of WCB for A$51 million.

MG must convince shareholders to accept its bid, which at time of press was A$7.50 cash, compared to Saputo’s offer of $8 cash a share.

The competition has pushed WCB’s shares from A$2.50 12 months ago to A$8.50 earlier this month.

The battle for listed Australian processor Warrnambool Cheese and Butter is far from over.

DAIRY NEWS NOVEMBER 12, 2013

14 // NEWS

Off-pasture systems on the increase PETER BURKE peterb@ruralnews.co.nz

MORE FARMERS are turning to ‘off-pasture’ systems, says DairyNZ strategy and investment portfolio manager Jenny Jago. These include bark pads, feed pads and wintering pads and covered systems.

Jago says while there is no up-to-date data on the increase in this type of farming system, there is clear anecdotal evidence that many farmers are going down this track. It is particularly noticeable ‘down south’, where farmers are looking at different wintering systems, and in other regions.

Many different drivers influence a switch to offpasture systems, Jago says.

“I think originally the use of the off-pasture systems was driven for pasture protection and that is still the predominant reason in some places.

But for others there are different drivers such as production, animal husbandry and in some cases social.”

The idea of using offpasture systems to reduce the environmental footprint of a farm is a relatively new focus, she says.

“It is certainly being considered as a mitigation option in research trials going on at the moment.

We have a lot more to learn about that; and what farmers need to be aware of there is when they make a change they also need to take into account what effect this might have on the overall farming system

DairyNZ’s Jenny Jago says more and more farmers are turning to ‘off-pasture’ systems.

they are operating.”

Jago says farmers shouldn’t make decisions on off-pasture systems without working out what effect this may have on other parts of their operation. She says a lot more research needs to be done to fully understand the implications of capturing

nutrients onfarm.

There can be some lessons taken from overseas where cows are often housed for several months of the year. But again she points out the cows are probably different and one would need to look at any data and put a New Zealand perspective on it.

Maori farmers urged to contest famous trophy MAORI DAIRY farmers have until the end of this month to enter the 2014 Ahuwhenua Trophy for Maori Excellence in Farming.

The 2013 awards were presented last weekend at the annual conference of the Federation of Maori Authorities (FOMA) in Hastings. Past trophy winners took part and a judge of the competition pointed out the benefits entering the awards had had on their organisation.

Two regional hui have been held in Bay of Plenty and Taranaki to encourage trusts, incorporations and individual Maori farmers to enter this year’s dairy awards The annual Ahuwhenua competition alternates between sheep and beef and dairy farming. The 2014 competition is for the top performing Maori dairy farm.

As well, there is a special competition held with the awards for the Young Maori Farmer of the Year.

The chairman of the management committee organising the event, Kingi Smiler, says the competition is a great

opportunity for Maori trusts, incorporations and individuals to showcase their successful dairy farming operations, some of which are among the top performing farms nationwide.

The Ahuwhenua Trophy was inaugurated 80 years ago by Sir Apirana Ngata and the then governor-general, Lord Bledisloe, with the aim of encouraging Maori to improve their farming. Smiler says Ngata was able to convince Lord Bledisloe that such a competition would reap benefits for Maori and for the New Zealand economy.

Entries for the 2014 competition close on November 29. In January a judging panel will visit all the farms entered then select three finalists. They will be announced at a function at Parliament on February 19. In March each of the three finalists will stage field days at which anyone is welcome. A new judging panel will assess each of the farms and decide the winner.

The trophy will be presented at a gala dinner in Tauranga on June 13 next year.

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DAIRY NEWS NOVEMBER 12, 2013

NEWS // 15

Dirty tanker saga ‘unfortunate’ PAM TIPA pamelat@ruralnews.co.nz

CONTAMINATION OF

14 Fonterra milk tankers with mud and dirt was an “unfortunate incident that shouldn’t have happened,” says Minister for Primary Industries Nathan Guy. But the mistake was discovered before any milk reached the plant so it showed the safety processes worked, he says.

Lower North Island.

“Any tanker coming onto a site has to go through the cleaning cycle,” says Walls. “But what we think might have happened is the contractor has sent us the wrong tanker – one that is not typically used for dairy.”

That was still being confirmed.

The automated system gave an initial indication of a problem, then a visual check picked up the dirt

“The important thing here is the product wasn’t processed, it was dumped.”

“The important thing here is the product wasn’t processed, it was dumped.

The odd incident can happen now and again – it was properly and adequately dealt with.”

Fonterra believes a contractor sent the wrong tanker last month when 14 milk tankers were exposed to dirt and mud contamination at the Whareroa plant near Hawera. Investigations were still continuing but it is believed a contractor’s truck had come onto the site and gone through a standard washing process, says Scott Walls, Fonterra general manager operations,

and gravel. About 14 milk tankers had gone through the cycle with the affected water; six of them had collected milk. The mistake was picked up within 44 minutes.

Contract tankers are used most seasons mainly to move by-products around the country, Walls says.

David McLeod, Taranaki Regional Council chairman, also says the incident shows Fonterra’s safety systems are working. “One of the main things – with my interest also as a Fonterra director – is to make sure everything on the envi-

Confidence hits five-year high STRONG DAIRY prices have helped push farmer confidence to its highest level in five years, says Rabobank.

A total of 54% of all farmers expect conditions to improve over the next 12 months; only 6%, down from 8%, expect them to worsen.

Those expecting their farm business performance to Ben Russell improve totalled 57%, up from 55%, and only 5% thought it would worsen, compared to 10% last survey.

Rabobank New Zealand chief executive Ben Russell says dairy farmer confidence had remained elevated in the wake of a record milk price forecast for the current season (at $8.30/kgMS) and good spring conditions.

“Dairy farmers are reporting the same high levels of confidence we have been seeing in the sector since the middle of the year, their optimism being driven particularly by high commodity prices, good overseas markets and the current milk price forecast.”

Russell noted dairy commodity prices were likely to ease from record high levels into 2014.

“And this is something Rabobank believes should be factored into producers’ planning and budgets for next season,” Russel says.

ronmental front is being done carefully and professionally.

“A contractor has done something that is not quite the norm and I am pleased Fonterra management and staff have picked up the issue and dealt with it promptly.”

The milk required to be dumped went through

processes at two wastewater treatment plants.

McLeod says the New Zealand media is waking up to the fact that everything Fonterra does, because it is a world dairy leader, is going to be seen by many people, governments and customers worldwide.

“The media has a very

important part to play in the reputation of New Zealand Inc.” Guy says on August 20 MPI lifted the scale of monitoring at all dairy processing plants following Fonterra’s food safety recall. These are interim arrangements until the ministerial inquiry is completed.

Nathan Guy

DAIRY NEWS NOVEMBER 12, 2013

16 // NEWS

New environment laws costly PETER BURKE peterb@ruralnews.co.nz

Rick Pridmore

DAIRYNZ IS set to almost double the amount

of money it spends on helping farmers deal with new environmental laws from central government and regional councils.

This year the indus-

try-good organisation will spend $11 million – up from $6.7 million last year on new initiatives to help farmers meet the new environmental standards,

including ‘boutique solutions’ for individual farms.

DairyNZ’s decision to pay out more coincides with the country’s 15 regional councils starting to implement the National Policy Statement on Freshwater Management.

DairyNZ’s strategy and investment leader for sustainability, Dr Rick Pridmore, says the other issue farmers have to deal with is the new Sustainable Water Accord, which replaced the Clean Streams Accord.

Pridmore says to honour the dairy industry’s commitment to both these initiatives, DairyNZ realised it needed to spend a lot more money.

“To meet these commitments I’ve taken money out of other programme that were becoming less important now and we have redirected the money to this area,” he says.

The extra money DairyNZ will spend on environmental matters will go to a number of areas. One relates to the economic analysis of proposed regional councils plans known as ‘section 32’s’. Many councils came under fire from central government for their poor performance in this area, and changes to the Resource Management Act are being made to force them to do better.

DairyNZ has also been working behind the scenes to improve the quality of some regional councils’ ‘section 32’s’ “We have done a big project with Horizons and we are about to release a report about [it]. We have done work with Environment Waikato and we are doing stuff with Southland shortly and also a lot of work in Canterbury. What we have done is tried to bolster the national capability to improve section 32 analysis and do better assessments of the economic impacts the decisions have on agriculture.

A lot of the work is on how we do better farm analysis so we can understand better how farms are impacted; but the real

breakthrough has been trying to understand how local communities themselves are affected.”

A public meeting in Dannevirke earlier this year drew attention to the devastating impact Horizons Regional Council’s One Plan would have on dairy farmers in the district and on small towns.

Pridmore says this has been an “eye opener” to them.

“A lot of the techniques we used there started to shape our thinking. We have found it’s quite possible to have a region as a whole not be dramatically affected, but to have certain rural communities be decimated.”

The way to deal with the increased workload, says Pridmore, has been to hire more specialist staff including five of the best water quality scientists in the country.

“We needed them so we could talk to councils in a sensible way. [And] we have hired a whole lot of policy people to work with policy people and planners in regional councils. We have hired economists to work with regional councils and beef up that area and we have hired extension people to help make on-farm changes so we can honour our agreement we have with councils. As a result of this we are finding ways that we can actually work with farmers to reduce the environmental footprint by just introducing good practice on farms – a lot better practice than we had before.”

Pridmore says DairyNZ will have to work with individual farmers rather than through discussion groups and that will cost more.

While he accepts that each council will have to do some things differently because of the nature of their regions, he says it would be “nice if there was more consistency”. He says he would like to see a lot more uniformity in the paperwork and can see no reason why it should vary so much from region to region. @dairy_news facebook.com/dairynews

DAIRY NEWS NOVEMBER 12, 2013

NEWS // 17

If it glitters its a winning calf THREE CALVES

named Allissa, Bella and Woc are in for a treat, their owners having won LIC’s art competition for rural children.

Pictures of their calves have won Thom Dijkstra (Morrinsville), Katelyn Flynn (Reporoa) and Emma Whiteman (Otorohanga) a calf care

hamper.

Voting now moves online for the public to determine the ultimate champion, whose owner will get a Stallion mobile calf feeder worth $6000.

LIC communications manager Clare Bayly says they had a difficult job choosing the three winners after receiving

LUCKY WINNERS ■■

Age 5-7 years: Thom Dijkstra and Allissa, Morrinsville

■■

Age 8-10 years: Katelyn Flynn and Bella, Reporoa

■■

Age 11-13 years: Emma Whiteman and Woc, Otorohanga.

■■

Most creative school: to be announced at a special school assembly.

hundreds of high quality entries from children all over the country.

“We have once again been overwhelmed with the number of entries this year, and the quality. The creativity of the children has been amazing.

“With a mix of canvas, glitter, paint, pastels, crayon, paint, collage and photography, we had a huge range and the effort in the works of art is spectacular; it shows you how much they love their calves.

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

LIC staff helped

choose the winners, with all pieces of art on display in their head office just outside Hamilton.

“They enjoyed it, and we have been proud to display the artwork for everyone to see. Now we’re asking everyone else out there to help us choose the ultimate champion and vote for their favourite online.”

Stallion Plastics Ltd, Palmerston North, sponsors the main prize – a MTF50 calf feeder valued at $6000.

Chief executive Grant

The three winning entries: Thom Dijkstra (Allisa), Katelyn Flynn (Bella) and Emma Whiteman (Woc).

Allen knows what fun Calf Club is for children and how important the events are for rural schools, but they require support from the family too, he says. “This feeder has been popular this season so I look forward to delivering the prize to the winner and their farming

family, and making their next calving season a bit easier.”

Children were asked to enter the competition with artwork of their calf, as part of LIC’s sponsorship of Calf Club events.

Rural schools were also encouraged to enter,

with the most creative entry to win three iPads.

Bayly says the winning school has been chosen and contacted but will be kept under wraps until a surprise assembly for the students.

Voting is open now at www.calfclub.co.nz until 5pm, November 18.

DAIRY NEWS NOVEMBER 12, 2013

18 // NEWS

Fonterra buys troubled Oz yoghurt maker FONTERRA HAS

bought an award-winning Tasmanian dairy manufacturer, which was put into administration two months ago.

The co-op has paid an undisclosed amount for Tamar Valley Dairy, Launceston. The familyowned company has made cheeses, yoghurt and milk drinks since 1996. Tamar Valley yoghurts have won Dairy Industry Association of Australia awards.

The Tamar Valley website shows the firm makes at least 23 products under the Tamar Valley Dairy label range including no fat, lite, natural, Greek

style and no added-sugar products.

The sale will be finalised later this month.

Under the agreement, Fonterra will acquire the processing equipment, related services and intellectual property and trademark for the Tamar Valley Dairy brand. The plant will be fully integrated into Fonterra’s Tasmanian and Australian manufacturing, creating greater efficiencies and scale, while ensuring Tamar Valley Dairy’s innovation and its Tasmanian origin continue.

“Fonterra is a longstanding partner of Tamar Valley Dairy, and has sup-

ported and worked closely with the administrators of the family-owned business during what has recently been a difficult period for the Tasmanian business and its founders,” says Fonterra Australia managing director Judith Swales.

“The founding family has created a business with strong capability and innovation, known for producing new Judith Swales yoghurt formats and formulations, and in a relatively short time they invest further in the busihave built a national brand ness and capability for further innovation in the in Tamar Valley Dairy,” yoghurt category.

Swales says.

“Fonterra is commitFonterra plans to

Award-winning Tamar Valley yoghurt brand is now owned by Fonterra.

ted to the total value chain in Tasmania – from farmers to employees, suppliers and services, and to the current and future Australian customers and consumers the worldclass operation and its products will attract,” says Swales.

The co-op says Tamar Valley Dairy’s yoghurt business will strengthen its strong national position in the chilled dairy segment in Australia.

“It complements our existing yoghurt [range], where we hold a marketleading position in main-

stream yoghurt through the Nestlé SKI brand,” Swales says.

The co-op says the two parties have worked on the business while addressing two key considerations: that it remains in Tasmania, which Fonterra is committed to, and that as many Tamar Valley Dairy employees as possible remain employed.

Fonterra says that during the next month it will work with Tamar Valley Dairy to determine the roles and correct employees for these roles, to ensure a seamless transition and continuity of operations under the new

ownership.

“Tamar Valley Dairy has a strong future. We see tremendous opportunities to build a sustainable, competitive business for the long term,” Swales says.

In Tasmania, Fonterra operates two manufacturing plants at Spreyton and Wynyard, and is responsible for processing at least half of Tasmania’s milk. Fonterra collects about 500 million L of milk from about 260 dairy farms each year, and employs 220 people. Over the last two years Fonterra has invested $20 million in these operations.

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WORLD DAIRY SUMMIT // 19

Reversal of fortune SUDESH KISSUN sudeshk@ruralnews.co.nz

THE GLOBAL dairy industry is

seeing a reversal of fortune; after a lacklustre 2012, this year is shaping up to be an exceptional year, according to the International Dairy Federation.

In its ‘World Dairy Situation’ report released at the World Dairy Summit, the IDF says weather is playing a crucial role and 2013 seems to be a “reverse portrait of 2012, with a sluggish start and a dynamic finish”.

“First in 2012, adverse weather conditions were concentrated mostly in the second half-year, while conditions were rather favourable during the first six months,” it says. “Unlike 2012, the first half of 2013 was not a bonanza time.”

Many countries in Europe were still recovering from bad weather and this affected the quality of forage given to cows. The animals were also released to pasture a month later than usual in most European countries.

The report says a severe drought in New Zealand earlier this year resulted in “massive culling and a severe milk production decline” compared to the first half of last year.

While the report stops short of predicting the weather for the remainder of this year, it says the July to September period appears to be more favourable than in 2012.

“No severe drought has occurred in the US and Russia, and weather patterns seem to be returning to normal

Cheese production is growing in almost every dairying region of the world.

in Europe, South America and New Zealand.”

Cows’ milk still represents 83% of the total world milk production.

The 2012 milk yield grew 2.1% compared to 2.7% the year before. India, the world’s biggest milk producer, and Pakistan, helped Asia lead the way with a 4.4% increase in production. Oceania was a mixed bag, New Zealand’s production rising 8.5% and Australia’s declining 3%.

The report was prepared by IDF’s standing committee on dairy policies and economics, chaired by Sarah Paterson, Fonterra. In their foreword, Paterson and IDF director general

Nico van Belzen say market volatility remains a constant for the global dairy industry.

“Weather remains a key driver of variability in milk supply,” they say.

The long term prospects for dairy products are encouraging and driven by demand from Asia, Middle East and Latin America. But they warn that while dairy commodity prices have recovered, farmers are under pressure in many regions due to rising input costs.

• Sudesh Kissun attended the 2013 World Dairy Summit in Yokohama, Japan with the assistance of the Asia New Zealand Foundation.

SAY CHEESE! CHEESE PRODUCTION is growing in almost all regions of the world, according to the 2013 World Dairy Situation Report.

Cow milk cheese production rose 2.2% last year. With a few exceptions like Egypt, everyone produced more cheese including the EU where milk production was down.

The report says cheese is getting more and more popular around the world.

Whole milkpowder and skim milkpowder production also grew 3.5% and 5.25 respectively. Dairy companies produced 4.5m tonnes of WMP and 4m tonnes of SMP last year.

WMP output in New Zealand rose almost 10% and China increased its output by 5.2%. World output of butter and other milk fats grew 3.3%.

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‘Moving window’ on food safety THE INTERNATIONAL Dairy Fed-

eration has unveiled a new ‘moving window approach’ in microbiological testing for the dairy sector.

It enables dairy producers to verify the performance and acceptability of the entire food safety system and moves from testing acceptability of individual batches of products to testing the acceptability of the performance of the process control system.

IDF president Jeremy Hill, who is also Fonterra’s director of research, says the new concept provides a more practical and cost effective solution for food safety control. “I encourage dairy processors to look into the

application of this approach within the dairy plants.”

Hill says dairy is a source of essential nutrition and the industry is committed to developing innovative solutions for sustainable, nutritious, safe and affordable diets.

“IDF [introduced] this new concept and trend analysis for the verification of HACCP (hazard analysis & critical control) systems. We have enormous combined knowledge and expertise, and by working with our partners and collaborators we can enhance and focus this expertise on priority issues such as food safety.”

The new method has been devel-

oped under the umbrella of the IDF standing committee on microbiological hygiene, in collaboration with the Codex Alimentarius, the Food and Agriculture Organisation of the United Nations (FAO) and the World Health Organization (WHO).

Dutch food safety consultant Claus Heggum led a team that developed this method of introduction in the recently published Codex Guidelines on microbiological criteria.

He says the development process involved international food experts and liaison with Codex experts to ensure the new approach meets Codex requirements.

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DAIRY NEWS NOVEMBER 12, 2013

20 // WORLD DAIRY SUMMIT

Lactose-free milk tastes success SUDESH KISSUN sudeshk@ruralnews.co.nz

FINNISH DAIRY processor Valio’s experiment with lactose-free milk 12 years ago had sceptics, even within the farmer-owned cooperative.

Some employees asked whether it was the right thing to do, said Valio export manager Maritta Timonen at the recent World Dairy Summit in Yokohama.

But speaking on the use of technology and innovation to communicate the benefits of dairy to consumers, Timonen said the ‘Eila (shortened version of ‘No Lactose’ in Finnish)’ brand of lactose-free milk drink – twice as expensive as conventional milk – defied all expectations.

Valio launched the world’s first lac-

tose-free milk drink for test marketing in Finland in 2001, targeting first year sales of one million L, which was reached within the first two months.

Sales hit 12 million L in 2002 and topped 70 million L in 2010.

Today Valio’s Eila lactose-free milk drink is one of its most popular domestic products with net sales for the lactose-free range amounting over 150 euros in 2012.

Containing less than 0.01% lactose, Eila is the world’s first dairy product to give people who cannot tolerate lactose the chance to enjoy the taste of fresh milk again, and reap the nutritional benefits that come with it. In Finland, the Eila product cannot be sold as milk but as a milk drink because one part of the lactose is removed and rest is hydrolysed using a lactase enzyme.

Timonen says this makes the milk

Valio’s lactose-free milk range.

drink lactose-free while allowing it to retain the “milk taste”. Valio had lowlactose milk in the market prior to Eila’s launch but consumers complained it was too sweet.

“But lactose intolerant consumers liked the no-lactose milk drink and we’re happy to get milk back into their diets in Finland,” she says.

Marketing has been a key to Eila’s success. In Finland, Timonen says, consumers were told what is lactosefree milk. The first targets were lactose intolerant individuals and their families.

Then the company moved into the food service sector promoting the use of lactose-free ingredients in cooking.

“We explained that all good nutrients are present in lactose-free dairy products and taste all the same.”

Today, Eila products are sold in 12 markets – Finland, Sweden, Estonia, Latvia, Lithuania, Russia and Ukraine. Valio’s technology licensees sell their brands in Spain, Switzerland, The Netherlands, South Korea and Norway.

Valio supplies 40 different lactose-free products including for example milks, yoghurts, creams, quarks, cheeses, butter and milkpowders.

Timonen says with social media, marketing has become much easier compared to the launch 12 years ago.

“Today it’s much easier to spread your message in a more efficient way.’

Timonen says like other countries, Finland is also experiencing a declining

ABOUT VALIO ❱❱ Owned by cooperatives with 7900 farmers ❱❱ Processes 1.9b L of milk every year with net sales of 2 billion euros ❱❱ Has 18 processing plants and employs 4600 employees ❱❱ Has subsidiaries in Sweden, Baltics, Russia, the US and China.

trend in milk consumption. “However, the lactose-free milk drink has helped to get new milk consumers and helped buck the trend,” she says.

• Sudesh Kissun attended the 2013 World Dairy Summit in Yokohama, Japan with the assistance of the Asia New Zealand Foundation.

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DAIRY NEWS NOVEMBER 12, 2013

WORLD DAIRY SUMMIT // 21

Rising middle class helps boost demand for packaged milk SUDESH KISSUN sudeshk@ruralnews.co.nz

DEMAND FOR liquid

dairy products is growing, fuelled by a rise in the middle classes in developing countries.

Milk packaging company Tetra Pak says demand for liquid dairy products is set to grow 2.5% in the next three years; consumption is forecast to increase from about 287 billion litres this year to about 309 billion litres in 2016.

Tetra Pak group president and managing director Dennis Jonsson says a growing middle class in China, India, Indonesia and Brazil is driving demand for liquid dairy.

Economic growth in other parts of Asia, Africa and Latin America and consumers increasingly seeking products which meet specific health and lifestyle needs also boost demand.

Jonsson told the recent IDE World Dairy Summit in Yokohama that in many of the poorest developing countries milk is consumed as the essential nutritional element of people’s diets.

“In mature markets milk has long been part of people’s daily diets. So growth is slowing or flat while it is growing rapidly in the developing markets.

“And, to a large extent, it is ambient dairy products that will drive growth as consumers of ‘loose’ milk – in countries like India and Pakistan – con-

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“That switch is due to growing awareness about the health benefits, safety and convenience of pack-

Dennis Jonsson

aged milk.”

By 2014 packed milk is set to outsell loose milk for the first time in developing countries.

Tetra Pak has identified

about 2.7 billion consumers in developing countries living on US$2-US$8 a day. These consumers represent a golden opportunity for our industry, he adds.

“Today’s low-income consumers in developing countries are tomorrow’s middle class. And these consumers have aspirations to buy the brands that today are unaffordable to them. This creates opportunities for brand owners to develop products differently, pack and distribute them differently and sell them. Innovation is needed to be able to offer the right product in the right size at the right price.”

Demand for health-oriented products and ‘onthe-go’ products is on the

COLLABORATION BRINGS RESULTS TETRA PAK head Dennis Jonsson says his company is a firm believer in collaboration that can and must cross borders, industries and sectors.

“Since the beginnings of our company we have supported school milk and feeding programmes, in collaboration with governments, NGOs and industry partners.”

Last year, at least 67 million children received regular milk or

other nutritional drinks in Tetra Pak cartons in school.

The value of such programmes goes beyond providing critical and much needed nutrition to children, says Jonsson.

“It is often a catalyst for school attendance and social advancement. And it provides a foundation for the development of local dairy farms, manufacturers and retailers.

It is also a catalyst for economic development.”

rise, says Jonsson. So is demand for products and packaging suited to the specific needs of ageing populations.

“A growing demand for healthy products such as energy drinks and probiotic drinking yogurt is forecast to grow at a compound annual growth rate of 8.5% from 2013 to 2016.”

To take advantage of this trend companies like Fonterra offer a range of products specially formulated to help adults maintain optimal bone strength. Mexico-based Alpura has a fortified milk to maintain heart health and avoid premature ageing.

To meet these changing consumer needs packaging companies must continuously innovate, he adds.

“At Tetra Pak we’ve launched packages sized for one-shot health and energy drinks, packages with increased functionality for older consumers and packages designed for on-the-go consumption – to name a few.”

• Sudesh Kissun attended the 2013 World Dairy Summit in Yokohama, Japan with the assistance of the Asia New Zealand Foundation.

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DAIRY NEWS NOVEMBER 12, 2013

22 // OPINION RUMINATING

EDITORIAL

Lest we learn

MILKING IT...

Clouds of hope

CRITICS OF New Zealand greenhouse gas emissions should go and wash their mouths out.

Our cows may be actually helping to make earth a cooler place. A team of 79 scientists writing in the UK journal Nature this month address the puzzle of how up to half the clouds in the sky are formed. They found that humans play a significant role mainly through pastoral farming.

The 79 scientists from the renowned Cern research laboratory in Switzerland show for the first time how gas vapours, mainly from animal husbandry, can react to create the essential tiny particles around which the condensation droplets that cause clouds form.

Clouds are by far one of the most important controls on global climate because they reflect back to space energy from the sun that would otherwise heat Earth’s atmosphere.

Shooting photos with milk

TAKING INSPIRATION from the pinup photos of the 1940s and 1950s, a London-based Polish photographer, Jaroslav Wieczorkiewicz, created incredible images by layering hundreds of snapshots on top of each other.

Models were splashed with milk for each individual photo, snapped with high-speed cameras.

Each shot required hours of patience, as none of the ‘clothes’ you see here were illustrated. The series will be made into a 2014 calendar.

Can you smell that?

Cows walking over men

FARMS DO not smell great to humans. But, on the other hand, humans don’t smell great to farm animals, either, especially not when we’ve drenched ourselves in chemicals. US Scent-maker Lisa Brodar wanted to find a middle way, so she developed a cologne cows would enjoy, too — “something sexy and subtle, that the cows would find soothing”.

“Believe it or not, I found a list of scents beneficial and aromatherapeutic to livestock — cows specifically. But the making of the cologne was challenging because a lot of those scents are a little offputting to humans; they’re strong tree-type essential oils that tend not to blend well. And some of the scents do different things; some are supposed to calm them, others are for fertility.”

DOZENS OF men in a town in India were nursing bruises after being trampled by cattle as part of an annual ritual to encourage God to answer their prayers. In the centuries-old ceremony, men lay on the ground and allowed decorated cows to walk on them.

While the ceremony can be painful, “there has never been a case where a person has been injured seriously or died,” Bhadar Rathod, a tribal chief in Garbada, told AFP. The ceremony in Garbada, some 200km from Ahmedabad, has become well known and is now something of a tourist attraction.

“It is believed that if a cow’s feet touches a person, his problems will be reduced,” a district official told AFP.

WHILE IT’S been fair and fashionable to bag Fonterra for its mistakes over the false botulism scare it is perhaps time to look at the many lessons from this debacle.

Large organisations, be they private companies or government agencies, suffer from the same problem as Fonterra: people work in silos and are very patch-protective.

They have their own budgets, and one way to curry favour with their bosses is to be under, certainly not over, budget. Managers fear others treading on their patch and taking slices of it and some people do this because they are hungry for power.

This is petty, childlike behavior and has no place in a large multinational company.

The fact that Fonterra managers made a series of silly mistakes then, worse still, argued over a few thousand dollars to sort it out, beggars belief. At no stage, until it was too late, did anyone get the big picture.

This sort of behavior – fixating on the small and ignoring the big-picture stuff – is common in large organisations. It is there to see especially in central and local government.

Fonterra and many other companies will pay a huge price for what is essentially a management failure to instill in all staff the overall aims of the company and how their personal role, however small it might seem, is crucial to success. In Fonterra’s case, a lens off a torch falling into in a spray drier started this dramatic escapade.

As Professor Keith Woodford noted, food companies have to be especially diligent because of the emotion attaching to their product and the public outcry that will inevitably follow any risk to human health.

Fonterra has paid a high price for failing to get the company culture right. Hopefully others watching this debacle playing out in the media are taking note and, like Fonterra, are putting in place protocols that will prevent an incident like this happening again in the New Zealand primary sector.

GOT SOMETHING ON YOUR MIND? GOT SOMETHING on your mind about the latest issues affecting our dairy industry? Put your pen to paper or your fingers to your keyboard, and let our readers know what you think.

Contact us by either post or email. Don’t forget to put your name and address. Note: Letters may be edited.

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DAIRY NEWS NOVEMBER 12, 2013

OPINION // 23

What is world-class governance?

LEONIE GUINEY

FONTERRA FARMERS have been

encouraged by their co-op chairman to assess board candidates for ‘world class governance’ skills. Great exercise. Do we ever assess our existing candidates for such?

How should we define ‘world class governance’ for a farmer owned co-op dependant on sourcing milk, marketing it and returning value to the farmer owners? A simple way is to ask what results would we see if governance was world class.

A co-op dependant on milk supply, with world class governance, would surely enjoy loyalty from existing suppliers while also encouraging new supply in such a way that its chief executive could then focus on achieving and maintaining loyalty from our international customers – without the background noise. The combination of the two – satisfied owners and satisfied customers – would then not only deliver profit back to the farm, but result in enduring business growth.

It is unfortunate that we have

recently been delivered a structure which achieves the opposite: it rewards disloyalty by farmer suppliers, encourages short term thinking and discourages new supply. Whereas we had loyal investors – farmers who had a long history of committing capital to the co-op for the long haul – Fonterra’s governors, against the wishes of a co-operative majority (which is historically 75% for good reason), instead sought traders to ‘discover value’.

All this was to ‘protect balance sheet risk’. So how does this equate with now using the balance sheet to prop up dividends? Or in simple language, paying out dividends where profits are not available to pay out, so instead dipping into equity to do so? Like the age-old farmer trick of hocking off a lifestyle block to free up cash for other uses.

You can only do that so many times until your core business is completely compromised.

Above all, world class governance of Fonterra would achieve trust: the trust of farmer owners in whose longterm interests the board is working; the trust of the New Zealand public and the Government that Fonterra – whether a reluctant national champion or not

– takes very seriously its position as a key driver of the New Zealand economy; and, finally, the trust of its customers.

In fact, listening to an inspiring presentation by Franz Keurentjes, a director of Holland’s Friesland Leonie Guiney Campina (FC), at a recent conference in Ireland, I heard him argue quite logically that FC seeks satisfaction of the customer first, more than the needs of producers specifically, because satisfied customers are the essential link to a farmer’s profit.

There is a proviso here though: FC has a structure under which farmers have no reason to believe outside interests are influencing their board. The satisfied farmer would have no fear the board was influenced by anything other than the owners’ long term interests.

Contrary to what the recent media frenzy implied, I believe Fonterra’s chief executive acted very well to maintain trust in our product during the botulism

scare. Unfortunately for him, a deterioration in trust of Fonterra within New Zealand – not internationally – during the past decade made his job very difficult . Historically taking the support of Kiwis for granted has been a mistake. The reporting of the botulism affair in Europe was much more balanced and logical, without the venom of upset New Zealanders. This served to amplify for me just how much work Fonterra has ahead to restore trust within New Zealand.

Recent disenfranchisement of existing farmer owners and potential new suppliers is testing farmer loyalty also.

It was a huge mistake by Fonterra’s governors to take farmer loyalty for granted and treat farmer owners with the same sort arrogance that the recent botulism investigation identified. All of this can be solved. Fonterra cooperative is a champion. But its governors must recognise it keys strengths are its loyal customers reliably supplied with quality product from its loyal farmer owners –

first and foremost.

World class governors would act in the long term interests of the owners, not the short term interest of owners of derivatives of the co-operative’s shares.

The announcement that Fonterra will use the ‘strength of the balance sheet’ to prop up the dividend, is astounding.

It suggests the governors are bending to pressure from a powerful few. I was incredulous that governors of a cooperative, charged with responsibility of farmer capital contributions, would do this. However, when the majority portion of the Fonterra shareholder fund is held by large international fund managers who expect an ‘acceptable’ dividend, the power of persuasion becomes believable.

Farmers must define world class governance for themselves before they choose to return incumbents to the board, ratify independent directors or vote for new candidates. The above is a reflection on my observation of companies and co-ops internationally that enjoy very long term success.

Those companies fully understand their strengths and build on them.

• Leonie Guiney is a south Canterbury farmer and Fonterra shareholder.

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DAIRY NEWS NOVEMBER 12, 2013

24 // AGRIBUSINESS

for Smiler collects Vision environment Feds’ top award spurs work MAORI FARMING leader Kingi

Smiler says it was a delightful surprise to win Federated Farmers’ Agribusiness Person of the Year award.

The award was presented by the Federations chief executive, Conor English, at the Federation of Maori Authorities (FOMA) conference in Hawke’s Bay last month. Though the award had been announced at the Feds annual conference, Smiler was overseas at the time so the presentation was delayed until the FOMA conference.

Smiler joins an elite group of recipients of the award including Sir Graeme Harrison, Andrew Ferrier, John Penno and Craig Hickson.

The Feds noted Smiler’s drive to establish the Miraka Dairy Company of which he is chairman and his chairmanship of Wairarapa Moana, a large Maori incorporation in the central North Island which runs 12 dairy units and 10,000 cows. It is a major supplier

to Miraka.

Smiler is a former partner in Ernst and Young. He has a wide range of business interests and is chairman of the Ahuwhenua Trophy management committee.

Smiler says he Kingi Smiler is very proud of the with his award, and pleased award. to share it with the people who have helped him along the way, especially his mother who gave him the leadership model he followed.

“This is a great thing for Maori. By awarding this prize the federation is recognising it brings a great opportunity for ourselves and the development of Maori.

“Maori and the federation are working together and sharing ideas and opportunities with our farming community and that’s a good thing.

This award recognises we are both a part of the industry and that we need to work together and we are in fact doing that.”

The trophy for the award is a miniature silver cream can – quite appropriate Smiler says. “Especially so when you think that it was Apirana Ngata who created the first dairy cooperative on the East Coast. They collected milk in cream cans so that is quite significant to me.”

THE NEW Zealand Farm Environment (NZFE) Trust is gearing up for another big year as it strives to help farmers face the challenges of the future.

Speaking last month at the trust’s annual meeting, NZFE chairman Alistair Polson said 2013 was a successful year for the trust’s flagship enterprise, the Ballance Farm Environment Awards (BFEA).

Regional and national BFEA competitions, ceremonies and field days continue to be popular and well supported, he says.

Another highlight for the trust was the addition of the Taranaki region for 2014, bringing the number of regions involved in the BFEA competition to ten. “We hope to include the remaining regions in future.”

But despite the ongoing success of the BFEA and the trust’s other activities, Polson says there is no room for complacency. New Zealand farming faces major challenges, and the aims and objectives of the trust have never been more pertinent.

“The scrutiny from our customers

and our community continues, as does our ability to measure the impact farming activities have on the land.

“Regional and environmental groups have legitimate concerns about intensive farming’s footprint. It is up to agriculture and horticulture to meet the reasonable concerns of these groups. Our BFEA contestants prove this can be done.”

Polson says a key role for the competition is to showcase the work of practical farmers and provide examples that can be followed by others. He says the awards provide a platform for “farmers to demonstrate to other farmers and the community what sustainable farming looks like”.

The trust has run other programmes for farmers throughout the year, including the Building Dairy Environment Leaders programme and the Beef + Lamb New Zealand Environmental Leadership Forum. The development of an alumni association for past supreme winners is also under discussion.

Stepping up?

Your reputation is growing, the legend has been born, now’s the time to lace up your formal gumboots and take the stage next to the best dairy farmers New Zealand has to offer.

Entries close 20 December 2013. Enter the 2014 New Zealand Dairy Industry Awards at westpac.co.nz/NZDIA

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DAIRY NEWS NOVEMBER 12, 2013

AGRIBUSINESS // 25

Signs of soaring farm prices FRANCIS WOLFGRAM

IF INVESTORS continue to see

record farmgate prices and vendors continue to sit tight on the back of these prices there is an expectation dairy property prices could really heat up heading into summer 2014.

Strong turnover indicators during the winter have reinforced a noticeable lift in underlying price trends. Recent month-on-month dairy property turnover has been solid running at about 80% of the 10-year average. In September 2013 there were 10 dairy farms sold at a median sale value of $43,013/ha.

The median farm size was 144ha in a range of 45ha in Waikato to 443ha in Otago. In August eight dairy farms were sold at an average sale price of $31,755/ ha, or $44/kgMS. The average farm size was 130ha and the average production per hectare was 725kgMS. In July, 10 dairy farms were sold at an average value of $35,720/ha, or

Month

REINZ Dairy Farm Index

$41/kgMS. In the three months July-September 2013 the median sales price per hectare for dairy farms was $34,912 (28 properties), compared to $32,234 for the three months ended August 2013 (35) and $19,604 (9 ) for the three months ended September 2012.

Strong turnover indicators during the winter have reinforced a noticeable lift in underlying price trends.

The median dairy farm size for the three months ended September 2013 was 149ha. The median production per hectare across all dairy farms sold in September 2013 was 1,016/kgMS. The REINZ Dairy Farm Price Index rose by 0.4% in the three months to September compared to the three months to

August, from 1776.1 to 1782.5 (see table).

The REINZ Dairy Farm Price Index has risen by 8.3% in the year to September 2013.

The index adjusts for differences in farm size and location compared to the median price per hectare, which does not adjust for these factors. The index has been stable over the last six months with a rise of 2.12% since March 2013 and a rise of only 1.86% since the start of 2013 which accounts for the large drop in the index between January and February 2013 which mirrored the large drop in milk production per hectare over this time due to last summer’s drought.

With the bulk of the $51bn in agricultural sector debt secured on dairy farms, interest rates are one factor that can hamper the prospects for the dairy property market and industry overall.

Financial markets have done an about-face recently and fixed interest rates have been pushed much higher on wholesale markets which has translated

Production Per Dairy Farm Sales Hectare Median $ Per Kg of Milk Solids Hectare

September

1,782.50

1016

34,912

August

1,776.10

725

32,234

July

1,777.10

861

34,882

June

1,738.89

729

29,555

May

1,768.80

995

34,850

April

1,761.16

928

34,819

March

1,744.80

940

35,487

February

1,.722.22

792

33,254

January

1,749.36

1047

35,530

Average 2013

1,757.88

893

33,947

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DAIRY NEWS NOVEMBER 12, 2013

26 // AGRIBUSINESS

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Memory-lane trip for awards contestants THE 2014 New Zealand

Dairy Industry Awards are accepting entries in what is likely to be the most memorable awards competition to date says the national convenor Chris Keeping.

The 2014 awards coincide with the 25th anniversary of the New Zealand Sharemilker of the Year competition, the country’s longest running dairy farming contest, Keeping says.

“We are taking some time to celebrate this achievement and are enjoying the trip down memory lane as we see where some of our past

winners, entrants, judges and organisers are now.

What has become apparent is the long lasting effect their association with the contest has had on them and their dairy farming careers.”

Keeping says entrants in the 2014 awards – the New Zealand Sharemilker/ Equity Farmer of the Year, New Zealand Farm Manager of the Year and New Zealand Dairy Trainee of the Year – could join the alumni.

Entries are being accepted online and close on December 20.

She says the awards are a big help to participants.

“The awards raise the profile, reputation and confidence of entrants and help them to upskill and promote their businesses.

They also offer generous rewards and prizes.”

Entrants up to December 1 will go into a prize draw for three Honda XR125 Duster farm bikes valued at $4000 each. One bike will be given to an early entrant in each contest.

The Dairy Industry Awards are supported by national sponsors Westpac, DairyNZ, Ecolab, Federated Farmers, Fonterra, Honda Motorcycles NZ,

Fonterra director Blue Read (right) with inaugural winners Kevin and Diane Goble at the awards launch last month.

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• Entrants will first compete in one of 11 regional competitions, all regional winners progressing to the national

grants from the Bayer Primary School Science Fund.

The money is expected to enable schools to look at projects such as monitoring streams, planting trees and learning more about science.

Administered by the Royal Society of New Zealand, the grants are for a maximum of $2000 for environmental science education.

Bayer New Zealand managing director Dr Holger Detje says he is delighted to see the funds going to projects that benefit the environment.

“As a large international company we take our commitment to the environment seriously, especially in the area of sustainability and education. That’s why we work with the Royal Society on providing funds for school projects; it not only benefits schools and their environments, but hopefully sparks an interest in children that will last a life-time.

“We are the only life sciences company that simultaneously works on improving the health of people, plants and animals.”

The fund was set up in 2011. Bayer New Zealand contributes $120,000 to the fund over three years. There are two funding rounds each year, the next opening in March 2014. www.royalsociety.org.nz

DAIRY NEWS NOVEMBER 12, 2013

AGRIBUSINESS // 27

DWN leaders off to Beijing TWO NEW Zealand dairy farming women will this week attend the Asia Pacific Economic Cooperation (APEC) Women’s Leadership Forum in Beijing.

Attendance is by invitation only for 250 woman leaders from Asia Pacific.

The forum is from November 14-16.

Dairy Women’s Network (DWN) executive chair and Southland dairy farm owner Michelle Wilson and DairyNZ director and DWN trustee Barbara Kuriger, a Taranaki dairy farm owner, are among 20 New Zealand women invited.

The forum theme is ‘Championing Innovation through Inclusive Leadership’.

Keynote speakers include former NZ Prime Minister Dame Jenny Shipley and Minister of Justice Judith Collins, who will take part in a forum debate. The trip includes a briefing from Sarah Kennedy, Fonterra vice-president (VP) of international

farming based in Beijing.

In an event separate from the conference, Kennedy will speak to the New Zealand delegation about Fonterra’s business strategy for China.

Wilson says DWN’s rapid growth shows how the role of women is changing in the dairy industry, and how they are contributing to its success.

“In reality dairying women are directors, managers and, in many cases, owners of multi-million dollar businesses which need people with sound leadership skills and farming, financial and business acumen.”

Kuriger was the first Dairy Woman of the Year, in 2011, is a director of DairyNZ and chairs the Primary Industry Capability Alliance. She also sits on several agribusinessrelated boards. DairyNZ is sponsoring her to the conference and chairman John Luxton says her selection recognises her long-standing leadership

Michelle Wilson

re-elected on to our board, to represent our farmers amongst a select group of women from the AsiaPacific regions.”

Fonterra chairman John Wilson says Wilson was a natural choice to sponsor to the conference.

“She is well known as a capable farmer and

Barbara Kuriger

businesswoman who commits a lot of her time and energy to the community.

“Her role as a Fonterra networker is a good example and I am confident the co-op will benefit from her experiences at APEC as much as Michelle will.”

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WOMEN WORKING in the dairy industry are being urged to get their nominations in for the 2014 Dairy Woman of the Year award, which closes on Friday.

Sponsored by Fonterra, the award includes the chance to attend the year-long Women in Leadership course offered by Global Women and valued at $25,000.

DWN executive chair Michelle Wilson says the award celebrates and advances women making a difference in the dairy industry, their dairying businesses and their communities. Past winners include DairyNZ director Barbara Kuriger and BEL Group business manager Justine Kidd, Waipukurau.

The Dairy Woman of the Year will be announced at a gala dinner at the network’s annual conference on March 20, 2014 in Hamilton. www.dwn.co.nz

IN BRIEF

TRACTA50585-DN

New chair for WRC FIFTH-TERM COUNCILLOR Paula Southgate is the new chair of Waikato Regional Council. She replaces dairy farmer Peter Buckley.

Cr Southgate won the chair eight votes to five, ahead of the other nominee Bob Simcock.

Councillor Southgate did not cast a vote.

In accepting the role, she said her election as chair had come as a surprise.

She acknowledged the experience around the council table, noting the number of councillors who could competently chair the council.

New councillor Tipa Mahuta was elected deputy chair.

in the industry as one of DairyNZ’s longest-serving directors.

Over the past 10 years, China and Asian countries have grown from a multimillion to a $2.6 billion a year dairy export market, he says. “This is a great opportunity for Barbara, who has just been

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DAIRY NEWS NOVEMBER 12, 2013

28 // MANAGEMENT

Robots set to roam ANDREW SWALLOW

ROBOTS ROAMING

dairy pastures are set to take farm management to a whole new level soon it seems, with two designs in advanced stages of development.

Hot on the heels of a Rural News article outlining a prototype developed by Pastoral Robotics (Rural News, October 22 – see panel), AgResearch put out a media release profiling its Agri-Rover project.

Project leader Andrew Manderson says the media release was to gain farmer feedback on where the work goes next in preparation for the next funding bid. “The feedback we’ve had so far has been absolute gold,” Manderson

told Dairy News.

Farmer input has already been instrumental in keeping the rover design effective, affordable and robust, he adds.

“It’s a battery and solar powered unit running four 240v gear motors that cranks along at about 5km/h, goes up and down 15-20o slopes and spins on a dime.

“It’s tough as well. We accidently dropped it off the back of a ute and it fell on its lid. We just turned it over and away it went again.”

AgResearch’s team first presented the Agri-Rover concept at the Fertiliser and Lime Research Centre conference in February and have had a functional rover out in the paddock since April.

The concept is an all-

Andrew Manderson with the pasture rover.

weather machine that can operate at any time, day or night, deploying

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MANAGEMENT // 29

pastures move from paddock to paddock too if necessary.

“It’s designed to be easy to operate, and will report results as needed to a cellphone or computer,” Manderson says.

Ultimately farmers may be able to view images of cows, pasture or whatever they want the rover to focus on, on their televisions, he suggests.

The AgResearch team has used off-the-shelf technology to keep the rover affordable, the current model costing $40005000 to build. “The entire project’s operating budget is just under $20,000. The expensive part is going to be putting on the sensors.”

Manderson suggests

optical pasture meters are likely to be the first tools deployed with robots such as the Agri-Rover, but electro-magnetic soil mapping to determine irrigation need/scheduling, soil sampling for fertiliser decisions, and urine patch identification are possible uses down the track.

In due course such machines may be able to make applications too.

“While we can tow a sizeable spray unit, it is too big a drain on current battery life.”

Technology to identify and spot spray weeds – a tough task in the green-ingreen pasture situation – is also being looked at.

To date the proj-

N loss key to Mini-ME THE FOCUS for Pastoral Robotics’ first roaming robot

design, dubbed the Mini-ME, is preventing nitrate loss from urine patches using patented technology to spot and treat them immediately after grazing.

“By the time you’ve got vibrant growth it’s too late: you should have been treating the urine patch five or six days earlier,” says Geoff Bates, who has built the Mini-ME with colleague Bert Quin.

Such treatment negates the risk of DCD contamination er Treatment of milk ss impurities as it will typically be at least 28 days before pasture issize grazed, and brine applications will be to limited areas, in arse granule to allow circulate within the contrast to make-up the boomtank application across the whole farm sin regeneration salt brine approach using used before DCD was suspended. moves Iron Bates says the Mini-ME’s development does not eate Potable Water depend on the moratorium on DCD being lifted, as there are alternatives such as urease inhibitors which, given the timeliness of the intervention, would be effective at slowing the nitrate release.

“It would great if they can get the [DCD] issue sorted and they say we can use it but this product is still relevant either way.”

The Mini-ME is under 50kg fully laden and travels at 5km/h or less, so poses little risk to humans, animals or fixed assets. At 5km/h and covering 3m per pass it will cover 1.5ha/hour. Given that a herd of 600-800 cows would normally graze 4-8ha/day that means it will easily be able to treat the pasture grazed by the herd each day, says Bates.

It’s envisaged users will need to move the Mini-ME to each new paddock, starting it at a designated point for it to follow a preloaded route avoiding previously mapped obstacles such as troughs or trees.

A launch at next year’s National Fieldays is planned, with a few pilot commercial models available for 2015/16.

Bates says where farms were spending $10,000/year or more applying DCD, deploying the Mini-Me to do the same job will be economic.

A larger ‘XT’ version with an extra spray tank capable of applying liquid urea, trace elements and other pasture additives is envisaged, as is a much larger machine, dubbed the Maxi-ME, which would perform all the functions the Mini-ME does but spread effluent and other bulk fluidised fertilisers such as phosphate and potash.

Bates and Quin presented their plans at last week’s Grassland Association Conference in Tauranga.

ect’s been funded from AgResearch’s Curiosity Fund. Other Agresearch scientists are developing robots to herd cows in for milking.

The rover is a battery and solar-powered unit.

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DAIRY NEWS NOVEMBER 12, 2013

30 // MANAGEMENT

Uni farm models higher profit, lower impact MASSEY UNIVERSITY researchers are testing a farm system that shows potential to improve the productivity of dairy farms, while minimising the environmental impacts on water quality.

The work is part of the Pastoral 21 research programme at the No.4 Dairy unit by scientists from Massey, AgResearch and DairyNZ. Pastoral 21 is the work of DairyNZ, Fonterra, Dairy Companies Association of New Zealand, Beef + Lamb NZ and the Ministry of Business, Innovation and Employment. It aims to show how to profitably increase pastoral production while reducing farms’ environmental footprint.

Professor Mike Hedley leads the research at Massey. He discussed the work at a recent meeting at the unit’s newly built freestall barn. He talked about how the common practice of standing cows off pasture to reduce winter treading damage to pastures during wet soil conditions can also reduce losses of nutrients in surface runoff and drainage. Loss of nitrogen to water is reduced if a paddock’s urine

patch load can be transferred to the standoff facility, such as a freestall barn, at critical times of the year.

The facility’s new $1.4 million freestall barn has feeding and resting areas for 200-300 cows. “It is a significant undertaking for any farm and our work will explore how to manage the system to benefit production and the environment,” Hedley says.

Stu Walsh and Steven Shaw, herd managers at the Massey No 4 farm, will use the freestall barn to house cows when they would do treading damage to winter wet soils and also house cows to reduce the summer- autumn urine load in the paddock.

Soil Scientists Dr Dave Horne and James Hanly studied the Manawatu weather and soils and found soils may be prone to severe treading damage for as long as 11 days at one time.

Dr Jean Margerison (dairy systems) researched different bedding systems for freestall barns. The unit’s newly built freestall barn will contain four different bedding systems capable of housing cows comfortably for long periods.

The barn will be ready for the research programme in November.

Almost everything will be measured to help establish the best, most costeffective system. This includes how the cows behave and adapt to being housed from the moment they are introduced to the barn. The comfort and effectiveness of cow mattresses – sand, rubber and foam – in the individual stalls will be assessed as will the barn cleaning systems.

The farm-scale trial builds on the findings of Christine Christensen, a PhD student, who refined the practice of “duration controlled grazing”. This allows cows to eat their normal grass diet and to be housed while they ruminate, rest and eat supplement.

A well-fed, highly productive cow spends about 11 hours a day lying and ruminating as it turns grass into milk.

Much of that lying can be in a house where urine and dung can be collected and re-applied uniformly as slurry to pasture. Low rates of uniformly applied slurry cause no increase in nitrogen loss through drainage water.

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Dr Jean Margerison (left) explains the cow barn bedding to a farmer group at the No 4 Dairy Farm.

The production from 200 cows that will be housed part-time in the barn will be compared with another herd of 200 representing more typical management in the lower North Island: 40% of the herd grazed off in winter and a feed pad to accommodate cows on wet winter and spring days.

A ‘reference group’ of local farmers has been asked to contribute their experience to help develop management rules for both farming systems.

At the recent farm reference group meeting Dave Horne and James Hanly discussed appropriate effluent management systems for the housed cows.

The team emphasises that the efflu-

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These factors influence the volume and consistency of the effluent.

An understanding of the soils and climate of the region is also important in deciding what storage and labour the system will require. There are several systems to consider, including wholeeffluent storage or solids separation and sprinkler, rotating irrigator or manure wagon application.

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DAIRY NEWS NOVEMBER 12, 2013

32 // MANAGEMENT A team of consultants, organised by fertiliser co-op Ravensdown will help develop environmental strategies for each farm.

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environmental issues.

This results from increasing demands on farmers to meet environmental standards and regional regulatory requirements in different parts of New Zealand, the company says.

The adoption of stricter nutrient management regulations is being led by Horizons Regional Council and councils in Otago and Canterbury are also nearing completion of recent plan changes.

Hawkes Bay is this month holding hearings associated with proposed changes in the Tukituki catchment plan.

Ravensdown’s environmental consultants will use their farm systems expertise and the nutrient modeling tool Overseer, combined with insight into farmers’ goals, access to soil test data and fertiliser plans, to analyse scenarios and develop effective strategies for each property.

Greg Campbell

ment maps, so their data is there if it needs to be included in their plan.

These three factors make the new consultancy an ideal fit for Ravensdown and its shareholders,” Campbell says.

Charges for the new user-pays Optimiser service will be based on the type of plan required and the complexity and detail needed. Farm scenario plans will contain analysis of various options for individual farm systems and farm environmen-

Manawatu, Otago and Canterbury are where farmers are facing the greatest pressure to meet tougher environment standards.

“Our core strength is nutrient management and this is valuable expertise for any farmer facing compliance issues with their regional councils, wanting to improve their environmental performance or considering a resource consent,” says Greg Campbell, Ravensdown chief executive.

Manawatu, Otago and Canterbury are where farmers are facing the greatest pressure to meet tougher environmental standards.

“Ravensdown has been advocating on farmers’ behalf as the new regulations in these areas have evolved. We also helped develop the Overseer nutrient modeling tool.

We often work with farmers on their soil testing or fertiliser proof-of-place-

tal plans will present a full farm environmental risk assessment with mitigation strategies.

“Our team has the practical insight into farm systems and a working knowledge of each region’s evolving regulatory framework,” says Kelly Morris, business manager Ravensdown Environmental. “Combined with their experience with the Overseer nutrient modeling software, this will deliver real value to farmers.”

The Optimiser service can include interacting with the relevant agency, for example during a consent process, freeing farmers from the typical back-and-forth negotiations and requests for information that can occur, the co-op says.

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DAIRY NEWS NOVEMBER 12, 2013

34 // MANAGEMENT

Trading two effluent ponds for one RICK BAYNE

LIVING IN a farming area with solid annual rainfall has its advantages but too much of a good thing during winter can also

Australian farmer Anthony Eccles and the 20-megalitre dam on his Purnim property.

cause headaches.

Australian farmers Anthony and Wendy Eccles, from Purnim near Warrnambool, faced such a dilemma when their two effluent ponds were failing to cope with excess

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winter water. They devised a solution to the overflow problem that has given the farm even better pasture results.

They modified the two existing ponds into one dam, built a new large 20-megalitre dam and installed a second pivot.

The set-up now enables the farm to prevent any waste run-off over winter while reducing the need for fertiliser and ensuring more home-grown feed is produced during summer.

The big dam is also home to dozens of ducks!

reliance on fertilisers.

“The only thing we have to put on the night paddocks is a bit of urea. We did the DairySAT programme and divided the farm into five different zones. We do soil tests every year to make sure we’re going ok. A few of the other paddocks get by without fertiliser now.”

Better use of effluent through the centre pivot has meant savings and better grass growth results.

“Instead of wasting water over winter we are now using it to make

“We put in the new system because we could see the benefits of irrigation. Since we’ve been using more effluent water we’ve made more profit.”

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It is a good outcome for a farm dedicated to quality, low-cost production.

The farm is able to milk year-round, the number of milkers ranging from 330450 over the year. They produce at least three million litres annually.

“We put in the new system because we could see the benefits of irrigation. Since we’ve been using more effluent water we’ve made more profit,” Eccles says. “We get amazingly good quality grass. We’re rapt with the feed we grow.”

The system has also given the farm more flexibility. “We have split calving and produce 45% of our milk out of season which means we get better milk prices. It flattens out the milk curve which is the best result for the farm and spreads the workload.”

The two pivots irrigate about 100ha of the 240ha farm.

The effluent pond is used to irrigate the farm’s night paddocks. “It’s the only spot the pivot could fit but down the track we might look at trying to get it to other places,” says Eccles.

Spreading the effluent has reduced the farm’s

more productive feed and we’re still growing over summer,” says Eccles.

“We are growing more and better home-grown feed and don’t have to bring in as much over summer. The better quality pasture feed means better quality milk with high protein. If you have to bring in hay and silage, the protein tends to drop.”

If the dam gets low over summer it can be filled by a bore, but that doesn’t look like being a problem at the moment. “The effluent is well diluted by the rain in winter and the bore in summer,” says Eccles.

The second pivot takes water straight from a bore.

The system has been in place for about four years but the Eccles family continues to tinker with it and plan for improvement.

Wobblers have been installed on the centre pivots, replacing sprinkler ends, to save water. “They form a droplet, not a mist.

We put them in because there is less evaporation and it is more efficient.”

Next they will look at improving the system for collecting solids. “You’ve got to be at it all the time, fine tuning to get the best results, but it’s worth the effort,” Eccles says.

DAIRY NEWS NOVEMBER 12, 2013

MANAGEMENT // 35

Check for these blood thirsty villians BLOODTHIRSTY ADULT ticks are on

a quest right now and farmers in the North Island in tick-prevalent areas should be checking cattle, says DairyNZ. Farmers should also be talking to their veterinarian about assessing their risk in an effort to limit the spread of a new strain of the blood-borne parasite Theileria.

Cases of cattle being affected by the new Ikeda strain of Theileria orientalis, which is carried by ticks and causes anaemia, have been on the increase since late 2012, particularly in the upper half of the North Island.

Animal husbandry team leader Dr Nita Harding says the New Zealand cattle tick is currently in the ‘adult’ part of its life cycle, and looking to attach and feed on cattle over the next three months. “It’s called ‘questing’, as the adult tick seeks a host to feed on before it lays eggs,” she says.

“The adult tick will only be on the host animal for about a week. After feeding it drops back onto pasture where it lays up to 2000 eggs over a three week period and then dies. Larvae hatch from the eggs three to six months later. These attach to a host animal, feed and return to pasture to develop into the next stage of the life cycle which is the nymph, and then repeat this process to develop from the nymph to the adult tick.

“Theileria is not transmitted from one generation of ticks to the next via eggs, so each new generation of ticks becomes infected by feeding on cattle with Theileria.

Reducing the numbers of larvae, nymphs

and adult ticks will limit the opportunity for Theileria to be spread within and between herds,” she says.

“This is an important stage in the life of the tick right now. While only a small proportion of the adult ticks may be feeding at any one time, and many will be using other animals like rabbits and deer as hosts, we need to do all we can to manage the numbers of ticks laying eggs. Ticks can infest many animal species but they only transmit the Theileria parasite to cattle.”

Harding says farmers need to be vigilant in checking cattle for ticks, and talk to their vet about their risk and the options for treatment if they find them. “There are also factsheets on the DairyNZ website (www.dairynz.co.nz/theileria) to help farmers assess their risk status. The Ministry for Primary Industries has summary advice on its website on the most at-risk areas based on tick distribution maps.”

FOUR-STAGE LIFE CYCLE The tick lifecycle consists of four stages: egg, larva, nymph and adult. All stages live at the base of pasture plants. Each stage, apart from eggs, needs to feed on a warm blooded host and finds its host by climbing up plant stems and attaching to a passing animal.

Feeding lasts 4-19 days after which the larva, nymph or tick drops off the host and returns to the bottom

of the pasture to mature to the next stage, or lay eggs if it is an adult tick.

The cattle tick, Haemaphysalis longicornis, is small. Adults are about 2.5 mm long. The fully fed adult swells with blood to about the size of a pea. Farmers should look for them around the tail head, base of udder and inside the legs and in the ears.

The ticks are found around the tail, head and inside legs and ears of cattle.

3599 Metabolizer halfpg vert.ind1 1

9/11/08 9:20:42 AM

DAIRY NEWS NOVEMBER 12, 2013

36 // MANAGEMENT

Wrap cycler calls time ANDREW SWALLOW

RECYCLING OPTIONS for silage wrap

Agrecovery will stop accepting silage wraps for recycling from next year.

seem set to halve with one of the two current service providers pulling out from the middle of next year.

Agrecovery says rising transport costs, contamination, and no New Zea-

land reprocessing facility means its farm collection operation is no longer viable but hopes its withdrawal from the market will boost the remaining provider’s operation.

“Agrecovery is intent on recycling becoming standard practice on New Zealand’s rural properties

The thought of stripping your entire herd leaving you cold?

We sensed as much.

and we are working with Plasback to ensure that positive momentum is not lost in silage plastic recycling,” says Agrecovery chairman Graeme Peters.

About 5000t/year of silage wrap is sold in New Zealand but a fraction of that gets recycled, says Peters. “Last year 309t was collected by Agrecovery.

Plasback maybe did a bit more, but the total’s not more than 20% (1000t). It might be 15%.”

That isn’t enough to justify building a reprocessing plant in New Zealand, he says, and both companies have been washing, sorting then exporting wrap for reprocessing, in Agrecovery’s case to China.

“That’s where the wrap comes from and they turn it back into wrap when it’s recycled. But sometimes it’s not easy to get it into China for reprocessing.”

What isn’t recycled is buried or burned on farm.

“The regional councils are very interested in [recycling]. They don’t

want it going into the environment.”

Peters says he’d like to see a levy-funded scheme where the price of every roll of wrap includes a contribution to the cost of recycling. At present only two manufacturers support recycling.

“Compared to the levy income from agrichemicals it’s minor. That’s $1.3m; bale wrap’s probably only 2% of that.”

About 30% of agrichemical containers are being recycled, and rising. “We’re pushing to get the recovery rate up.

We want to get to 50% by 2016/17.”

Peters stresses Agrecovery’s agrichemical container recovery operation continues. Thanks to the support of nearly 60 manufacturers that is a free service, in contrast to the silage wrap services.

“It’s a very different model from what we could offer for silage plastics, and one we believe delivers the most sustainable results long term,” he says.

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Organiser and Milksmart project manager Chris Leach says the competition is designed to gather ideas from farmers nationwide, for saving time, money and energy during milking.

“We want to celebrate and share the ideas farmers have for doing things in the farm dairy that make the job easier or more pleasant. Some people think milking efficiency and innovation is via huge breakthroughs… and sometimes that’s true. But we believe it’s the small things that count, and these can make a huge difference day-to-day.”

The best entries will be showcased at the 2014 Milksmart events in February and March and promoted to other farmers through various media.

There are three categories farmers can enter: the way you do things; gadgets, gizmos and gear; and harebrained schemes (funny but impractical stuff that was trialled but didn’t work).

The overall winner will get flights and accommodation for two to Sydney, Brisbane or Melbourne to the value of $2000 thanks to Orbit Hamilton, the corporate arm of Calder & Lawson House of Travel. The winners in each category will get a Samsung Galaxy Mini smartphone thanks to Telecom.

Farmers can enter online at www.dairynz.co.nz or by sending a photo or video from their phone to milksmart@dairynz.co.nz. Alternatively, an entry form can be downloaded from www.dairynz.co.nz and posted to DairyNZ. The competition is open to all New Zealand dairy farmers and entries close December 13.

DAIRY NEWS NOVEMBER 12, 2013

MANAGEMENT // 37

Ruakaka dairy farmers Stephen Holland and Brianna Templin.

Feed pad roof turns liability into asset worked out I would have needed four times the amount of effluent storage capacity, from 5000m3 to 20,000 m3, just to cope with the water coming off the large surface area of the concrete feed pad.”

Holland decided roofing the area might be a better option.

A discussion with Herd Homes owner Tom Pow suggested roofing most of the feed pad would be a cost

company set out to get as much air and light into the structure as possible.

The material is so dry it could be A RETRO-FITTED roof turned a used to grow root vegetables, he says. feed pad from a ‘complaint risk’ to a “Tests by Hill Laboratories show that worthwhile asset says its Northland e-coli is extremely low in the mat owner. meaning it could be used in vegetaRuakaka dairy farmers Stephen ble gardens.”

Holland and Brianna Templin milk Holland plans to use the muck 220 cows on 132ha. Sandy peat type as an impromptu stock mat before soil makes the property difficult spreading it onto the maize to farm in dry years and paddocks in autumn. “The especially as all the herd’s “The runoff completely buildup of dried muck proreplacements are kept vanished. Not one ounce of tects the cows feet from onfarm. water comes off the feed pad stones on the bare concrete To cope with extra so there’s no reason to get feed requirements of year- even in the pouring rain.” rid of it. round milking Holland set “Once we get to the point it has to aside 9ha for a maize crop and built a effective solution with more benefits 105 x 10m feed pad. than larger ponds. “We talked before be shifted we’ll just peel it off the pad A crop yield of 25-30 tonne/ha winter, in March, and the roof was up and spin it onto paddocks with a muck proved enough to keep cows pro- by end of May. They probably did it in spreader.”

Holland says the roof has already ducing well. The herd was on the pad less than six weeks.” constantly throughout the previous Herd Homes put up poles around paid for itself by reducing stress and season as the dry summer led into the the outside of the 105 x 10m area, cov- time spent trying to get supplemenautumn and there was little available ering 94 x 10m of it with a clear plas- tary feed to the cows and pasture damage. grass for cows in the paddocks. tic roof.

“With the cover in place we don’t However, it was the torrential A bunker area is set aside at the rains of late autumn that caused the end of the structure to collect dried have to wait for a fine part of the day to put the feed into the bins or rush most problems when the water flow- effluent scraped off the pad. ing off the concrete feed pad caused Holland says the result was so to get the cows on. Now it doesn’t Holland’s effluent system to overflow big and so marked it was as if some- matter when we feed out. With the leading to warnings from the regional one had turned off a tap. “The runoff covered feed pad it’s a very simple council. completely vanished. Not one ounce exercise.”

There are other uses says Holland “We tried using spray irrigation of water comes off the feed pad even and he also intends to keep his loaded and our slurry wagon but the water in the pouring rain.” coming off the concrete into the Effluent was so dry that while silage wagon in the structure to keep ponds was too much cope with and Holland has been using the pad every it dry before feeding out. “The 3.6m within the space of the year council day since the start of June he hasn’t stud roof means you can load up the demanded that I increase the capac- needed to scrape it off once. The wagon and park it in the shelter until ity of my ponds.” material dries to form a 15mm crust you need it. There are lots of things you can do with it.”

Also, the feed bins would fill up made up of 80% dry matter. with rain and they had to empty them Pow says it was the first feed pad Tel. 07 857 0526 before being able to feed out again. “I the company had covered and the www.herdhomes.co.nz GARETH GILLATT

DAIRY NEWS NOVEMBER 12, 2013

38 // ANIMAL HEALTH

Mycotoxins an unseen drag PAM TIPA pamelat@ruralnews.co.nz

MYCOTOXINS – a

group of compounds produced by fungi or mould – have a number of negative effects on the dairy cow, says visiting Canadian expert Professor Trevor Smith.

They are also a potential food safety risk, says Smith, of Ontario Agricultural College at the University of Guelph. New Zealand dairy is becoming more exposed to them because of drought and the move towards more supplementary feed.

Smith was in Auckland recently, as a consultant to Alltech which held a oneday conference on mycotoxins.

Negative effects of mycotoxins on dairy cows include behaviour changes, reduced dry matter intake, loss

of appetite and loss of muscle coordination, he says. Ingestion of contaminated feed produces an almost sedative like affect.

The animals are lethargic and want to lie down, not forage around.

A second group of symptoms includes various lesions in the digestive tract of the cow. These can lead to haemorrhaging or bleeding. Conditions such as haemorrhagic bowel syndrome, for instance, are made more severe.

There can be an increased frequency of ulcers, blood in faeces and damage to the villi of the intestine which inhibits nutrient uptake.

A third group of symptoms relates to feed-borne mycotoxins’ suppression of the immune system.

“This means the dairy cows can experience lingering disease problems; we can see animals that do not respond to medi-

cations. We can also see failure of vaccination programmes.

“The overall effect is a deterioration of health status in the herd. We can see increased mortalities, and the challenge is the symptoms we see in the mortalities are not what we would call mycotoxin lesions – they arise from the organisms which took advantage of the compromised immunity. So it’s difficult for veterinarians to conclude that this was mycotoxin-induced.”

A fourth group of symptoms involving contaminated feed is impaired reproduction, he says. “We see decreased fertility and increased frequency of abortions. This is because a few of these mycotoxin compounds are estrogenic so they affect hormonal balance in the dairy cow.”

Smith says the other aspect of the mycotoxin challenge in the dairy

cow is food safety issue.

The residues in fluid milk known as aflatoxins are carcinogenic – one of the most carcinogenic compounds we know of.

The form of aflatoxin in feedstuffs is somewhat different from the form in milk, which is called alflatoxin M1 – M for milk.

“This is less carcinogenic than the compound in feedstuffs but it can present a hazard especially for infant formulas.

“This is a human food safety issue – the levels threatening to humans are not levels that would affect the performance or health of cows. Dairy cows can tolerate much higher levels than those in condemned milk.

“It’s a food safety issue for export markets and preserving the image of New Zealand dairy products; they have to make certain the aflatoxin levels are not exceeded.”

Mycotoxins producing mould.

One concept addressed in the mycotoxin conference was some new technologies developed for measuring mycotoxin levels in dairy feedstuffs.

One technology has been pioneered by the Alltech research group at its headquarters in Lexington, Kentucky. This is a technology known as LC/ MS/MS and it allows multiple compound analysis. Alltech scientists have developed technology to allow simultaneous detection of 37 different compounds.

Testing of feedstuffs fed to dairy cows – including a mixture of New Zealand produced feedstuffs and some imported – showed they all contained more than one toxin and typically the average was 6.3 different mycotoxins.

22% tested positive for aflatoxin.

“It doesn’t mean they were in exceptionally high levels but it does mean that aflatoxin is present in feedstuffs being fed in New Zealand. Under certain circumstances this could result in condemnation of milk for human consumption.”

Milk is constantly being tested for the aflatoxin M1, given its danger to human health. But testing at feed level will be a further backstop against it getting into

Trevor Smith says mycotoxins have a number of negative effects on cows.

the milk.

“But testing at feed level will also minimise the exposure of the cows to contaminated feed,” says Smith. “This not only means the milk will be more wholesome but these compounds suppress immunity and increase disease susceptibility in animals.”

The LC/MS/MS test is only available in sophisticated laboratories and is only economical for large companies to carry out.

But an option for smaller operators such as feed mills or farmers is the Elisa test which tests for individual mycotoxins and costs about $15, says Smith.

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DAIRY NEWS NOVEMBER 12, 2013

ANIMAL HEALTH // 39

on cow health

Ingestion of contaminated feed produces an almost sedative like affect on cows.

IT’S ALL ABOUT FOOD SAFETY A GREATER awareness of mycotoxins is part of becoming ‘best in class’ in food safety, says Professor Trevor Smith.

“New Zealand has a strong reputation with respect to product quality in dairy products and that has served the industry well for a long time. It is important the industry maintains that image.

“As global trading of agricultural products becomes more competitive, as it is, the importance of high quality is even greater.”

Smith has seen more interest in mycotoxins in the New Zealand dairy industry this year than during his visit in December last year. That’s partly because the drought last summer is likely to have promoted the growth of highly dangerous aflatoxin.

“High rainfall and excess

moisture is always a higher promoter of mould growth with potential toxin production,” he explains. “Drought also does a similar thing: the mould responds to any type of environmental challenge – such as high temperature or low humidity – by producing more toxin.

“But the nature is different: in drought conditions we can expect increased amounts of aflatoxin, whereas with cold temperatures and high moisture there are other groups of toxins more common and not carcinogenic. They are not presented as such a threat to human health but they affect dairy cow performance.”

Greater use of supplementary feed is raising the risk of mycotoxins, but pasture and silage are also vulnerable, Smith says.

“The other issue influencing

New Zealand [and the world] is the challenge of so-called global climate change and extreme weather patterns, alternating between drought and excess rainfall and flooding and not much in between.

“This has been a major challenge to us as the average rainfall could be normal but it doesn’t come in normal patterns.”

He says New Zealand dairy farmers should be aware that with more extreme weather conditions there may be more issues relating to toxicity in silage and pasture.

Where possible farmers could monitor some feed ingredients using the inexpensive Elisa testing, to get some idea of what is happening on their farm. This could differ markedly in different microclimates.

Summing up West Coast farming EVENTS ANALYSING data from

four West Coast farms will show the effect of drought last season on local dairy farmers.

Farm field days will be held November 18-22 where DairyNZ senior scientist Dr Dawn Dalley will summarise the farms’ 2012-13 season. The farms in Greymouth, Westport, Ikamatua and Kowhitirangi are part of the West Coast Monitor Farm Project.

“We will be looking at trends and comparing seasons from when the project started in 2008,” says Dalley.

“Of particular interest to farmers will be the impact of irrigation on pasture growth, especially during a year affected by drought.

“The monitor farm property at Ikamatua has completed its second

season of irrigation, with just under 30% of the property under pivot irrigation.

“At the field day we will present a cost-benefit analysis on the value of irrigation and compare the performance of different paddocks under irrigation and without.”

Overall farm profitability will also be discussed.

“Farm information has been entered into DairyBase for the last four seasons, which gives us a good opportunity to look at the performance of the farms over time. For example, if farm working expenses have gone up, has that resulted in more production and therefore increased profit?”

The project is a good source of relevant information for local farm-

ers who can access a range of data, says DairyNZ consulting officer for Westland Ross Bishop.

“The project is valuable to farmers who may not take their own measurements.

“They can use the information from the monitor farm nearest them to help make management decisions,” says Bishop.

“The large variation in growth arates recorded on the monitor farms confirm it is important that different regions, with differing microclimates, are represented.”

Events are in Kowhitirangi on November 18, Greymouth November 19, Westport November 20 and Ikamatua November 22.

Tel. 0800 4 324 7969 www.dairynz.co.nz

DAIRY NEWS NOVEMBER 12, 2013

40 // ANIMAL HEALTH

Calving pattern change delivers results AUSTRALIAN FARMERS farm-

Brett Gledhill

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ers Brett and Judith Gledhill have increased conception rates since switching their herd to calving every three months.

The a2 milk suppliers from Nanneella, Victoria, have changed their calving pattern from three times a year to four in a bid to flatten their milk supply, as well as easing the personal strain during calving. It has also improved farm management, according to Brett Gledhill.

“When we initially suggested three or four calvings, our vets said it would be too much work. I said, ‘we’re here anyway, so what’s the difference if we’re calving cows too, and you’re doing it in short bursts’.”

Each calving window is three weeks.

The Gledhills are running 180 head and milking 140 cows throughout the year – due to the need to cull 50 head in one hit – and plan to build this to 200 milkers, milking those consistently throughout the year. As a result, they are calving 35 cows every three months.

Bulls are no longer bought. Cows are inseminated and those that don’t get in calf are carried over to the next lot, six-eight weeks later. “A cow may

have been crook, so we give them another go.”

The benefits continue when the calves are on the ground, with Gledhill saying 30 calves receive more attention and therefore better care than 60 or more at once.

Judith manages the breeding and calf rearing aspects of the operation.

Robotic feeders have been used for the last five years to assist.

Hair samples are taken from calves and tested for the a2 gene. Anything not a2 is sold.

Calves are weighed every three months and are carefully managed to ensure they meet their targeted joining weight.

When heifers are approaching their first joining, they are weighed a month beforehand. Anything not going to make the target weight is moved down into the next mob. This is also credited to the rising conception rate.

Holsteins must be 350kg and Jerseys 320kg at 12 months for their first joining.

Calving rates have improved at least 10-15%, while conception rates have been 65-72% after one round of AI. It was 2009 when the Gledhills

first registered their interest in a2, attending an information session at the Mulcahy family’s Kyabram processing plant. At the end of the session they had signed to convert their herd.

It was a slow process, as 32% of their herd were straight a2 – containing the a2 beta-casein protein – so they began breeding from a2 sires and culling non-a2 cows.

In May 2012, the 240-head herd comprised 140 a2 cows. Brett got a call from the Mulcahys saying they were short of a2 milk and could he supply some in two days.

“We had 50 cows left to cull,” Brett says. They were culled very quickly.

They bought some a2 cows – including about 30 Jerseys from a dispersal at Stanhope – but have now made the decision to breed up.

There are 180 cows, with 100 head of young stock coming through. They are trying to build the herd by 20 cows each year.

The a2 milk delivers a premium to the Gledhills for little extra cost.

“That was the best thing, I didn’t have to spend excessive money. They paid for the testing of cows, and we kept chipping away, building our a2 numbers,” he says.

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THE GLEDHILLS produce all their own hay and silage for their herd and have been able to reduce the amount of grain required without a decline in milk production.

Brett Gledhill had six Bale Up hay feeders adapted so they could be linked together, and has placed it next to the dairy.

Cows have a feed of hay – usually for about 20 minutes – every morning and night after milking before making their way to the next paddock.

The Gledhills produce square bales of hay and these can be placed straight in the hay feeder. Six bales last a week and grain per cow has been reduced from 6kg to 5kg each day with no loss in the vat.

The design of the feeders means no wastage as all uneaten fodder is caught at the bottom. The feeders can be turned upside down for

cleaning and uneaten fodder is used for compost. “There was waste of feed previously and waste is a cost so we had to minimise that cost,” he says.

Brett and Judith’s daughter Lisa is on the farm with her husband, who is a feed contractor and produces all the Gledhill’s fodder.

The Gledhills now own two farms – including his parents’ farm – and lease a further 160ha. All are adjoining. They have also recently bought a third property.

The dairy block runs cows; young stock is run on his parents’ former property, while dry cows are run on the lease block. Fodder is produced on all blocks.

The recently purchased property will be used for dry cows. “Agistment is $10-12 a head now, so we may as well

have a property and put them there.”

Brett says the last few years have been good for silage and hay. They use an agronomist.

“I have ideas and he’ll say yes or no, and we’ll put together a plan.” This has included planting 10ha of lucerne, with another 10ha due to be planted in the next 12 months. They have 12ha of perennial pasture and the rest of the farm is annuals and cereals.

Annuals will be shut down in mid-December and watered again about February-March until it rains.

“During summer, cows go into a shaded area and eat silage. We put them as close as we can to the cow shed so they’re not walking. We don’t want them using too much energy over summer or we’ll lose production and conception rate will fall.”

DAIRY NEWS NOVEMBER 12, 2013

ANIMAL HEALTH // 41

Fungal spores put cows at risk as sun shines which causes lowered production and sometimes death from liver damage.

DairyNZ says fungal spores produced by the fungus Pithomyces chartarum growing on pasture produce a toxin which when ingested by cattle damage the liver and bile ducts.

The damaged liver cannot rid the body of wastes and a breakdown product of chlorophyll builds up in the body causing sensitivity to sunlight, which in turn causes inflammation of the skin.

The first sign of FE is a drop in milk production occurring soon after the intake of toxic spores (subclinical FE).

Cows are restless at milking time, seek shade and lick their udder. Another drop in production occurs when physical symptoms (clinical FE) become obvious. Exposed unpigmented or thin skin thickens and peels. Watch white areas, teats, inside the hind legs, and the udder and udder support area.

Not all animals affected with FE show physical symptoms (i.e. clinical FE) though liver damage has occurred.

Milk production of animals with subclinical FE can be depressed by up to 50%.

It is estimated for every three in 100 cows showing clinical FE, about 70% of

the herd may have subclinical FE. Badly damaged liver tissue will not regenerate. Chronic wasting and/or death may occur at the time of damage or months later when the animal is under stress, e.g. calving.

The fungus produces spores when grass minimum temperatures are above 12°C for two or three nights

START FE CONTROL EARLY

COWS SHOWING clinical signs of FE can recover if prompt action is taken.

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Put zinc cream on white areas of the coat and the udder (if affected) Move affected stock into dense shade. Indoors is best (hay-barn, calf-rearing and implement sheds) but make sure there is a good water supply and supplementary feed available for cows

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Feed cows at night, so they are not exposed to sunlight and stop hard grazing so cows do not graze down into dead matter where the spores that cause FE live Feeding maize and/or silage can help, but cows will still tend to graze if they are kept on pasture

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Administer zinc as a drench or in water/feed supplies, or use zinc bullets as a standby Spray pasture with fungicide Map high and low risk areas of the farm through spore counting Check prevention regimes where young stock are being grazed.

and humidity is high (usually January to May). The fungus grows on soft litter at the base of the pasture so hard grazing during danger periods increases the risk of spore intake as does topping which increases the build-up of soft litter.

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DAIRY NEWS NOVEMBER 12, 2013

42 // ANIMAL HEALTH

Captive-bolt devices best for animal euthanasia LAST MONTH I attended a training day on the finer points of euthanasia, also known as the humane destruction of livestock. Dairy Australia funded my attendance at this worthwhile day, which used industry levies to train me and other vets so we can pass that knowledge on to farmers and farm workers.

Why, you may ask, does a vet need training in how to kill things efficiently?

It was James Herriot who said that “you can’t call yourself an experienced veterinarian until you have filled a five-acre paddock with bodies”. Well, based on this criterion, I must nearly be a specialist.

But seriously, all our

livestock industries are under scrutiny from consumers, welfare activists and trading partners, not only on how humanely we treat our animals while they are alive, but how humanely we can relieve suffering if they are injured or sick and do not have a reasonable prospect of recovery.

It is essential animals are not allowed to suffer

unnecessarily if they are diseased, unable to stand or cannot be sold for whatever reason.

It is essential all dairy farms develop a protocol that allows them to competently and humanely destroy animals when needed. A critical consideration also is how the bodies are disposed of after they are euthanased.

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In our small animal practice, we use a concentrated dose of anaesthetic to ‘put them to sleep’, but on farms this technique makes the disposal of the carcase problematic.

The animal is not safe to send to a knackers, and must be deep buried in an approved manner to prevent secondary poisoning.

The lack of a knackers service is also a real issue in a number of dairy areas in Australia now due to the declining economics of providing this service.

Composting of carcases is only possible onfarm when a non-toxic method of humane destruction has been practiced.

Other less toxic but lethal injection methods, if not adequately managed, can result in a poor outcome and therefore are not compliant with the standards and guidelines, unless under the supervision of a competent person.

The firearms legislation in Australia (which I support as having saved many

It was James Herriot who said that “you can’t call yourself an experienced veterinarian until you have filled a five-acre paddock with bodies”. Well, based on this criterion, I must nearly be a specialist. lives) has also meant it is virtually impossible for a vet to carry a firearm in a vehicle on a daily basis.

There are also many farms that no longer have a licensed firearm or shooter present.

When I talk to farmers, they say they are reluctant to have a firearm in their workplace.

If they employ staff it is almost impossible to ensure compliance with the firearm legislation and to have a ‘communal gun’ which all staff can use if an animal needs to be humanely destroyed due to injury or illness.

Many farmers cannot be bothered with the costs of compliance and licensing.

It is clear, as seen when

the footage filmed in Indonesia hit the media, that the community demands humane killing practices.

Poor onfarm practices of euthanasia could have severe consequences, with a consumer backlash or restrictions imposed by our trading partners, let alone the fact that poor practice means animals will suffer unnecessary pain.

Captive bolt devices designed for use on livestock have recently become a cost-effective option.

They do not fire a free projectile; instead they fire a retractable rod that when used correctly will result in nearly instant brain death. This is a safe and humane method of

destruction when used by appropriately trained people. They do not require a firearms licence (except in WA), nor are they required to be stored in a gun safe.

This is an attractive option on dairy farms where multiple people may be required to access the device.

Dairy Australia has developed a training package which will be delivered by the NCDEA to help farmers maintain standards of humane destruction practice consistent with the animal welfare standards and to comply with regulations regarding the disposal of carcases.

Training vets in the correct use of captive-bolt devices will allow us, in turn, to train our farmer clients in the correct methods of euthanasia of livestock.

• Rob Bonnano is a past president of the Australian Cattle Veterinarians Association and a director of the Shepparton Veterinary Clinic.

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DAIRY NEWS NOVEMBER 12, 2013

ANIMAL HEALTH // 43

Cow affects cow when mastitis watch falters THE MAIN mechanism

of transmission of contagious or ‘cow associated’ mastitis is the spread of pathogens from cow to cow, mostly at milking, says DairyNZ. The bacteria generally responsible for contagious mastitis are Staph. aureus and Strep. agalactiae.

These bacteria live on the teat skin or in the udder.

Spread occurs when infected milk contaminates the teat skin of clean quarters or other cows.

This can be by milk on milkers’ hands or teat cup liners, through splashes or aerosols of milk during stripping, and by cross flow of milk between teat cups .

Staph. aureus invade udder tissue and can form pockets of infection (micro-abscesses) and scar tissue. The infection is difficult to cure, especially during lactation, so

prevention is essential.

In contrast, Strep. agalactiae tends to be located in the duct areas of the udder where antibiotics are effective. It is very sensitive to penicillin, so treatment has a relatively high cure rate.

Strep. uberis has become the major cause of mastitis in New Zealand. Although it usually behaves as an environmental pathogen, sometimes Strep. uberis can spread contagiously. Strep. dysgalactiae is another major pathogen that can be isolated from sites on the animal and can spread contagiously. Teat end damage is a risk factor for mastitis caused by Strep. dysgalactiae.

Coagulase negative staphylococci (CNS) are minor pathogens that can cause clinical mastitis but are generally associated with subclinical masti-

tis. These pathogens share characteristics with cow associated, contagious bacteria and environmental bacteria.

Corynebacterium bovis is a minor pathogen that causes subclinical mastitis

and rarely causes clinical mastitis. It is usually associated with poor teat disinfection and is considered highly contagious. CNS and C. bovis are generally associated with the skin of the cow.

A clean and well-sprayed teat.

The spread of contagious mastitis can be minimised by good hygiene, keeping teat ends healthy, using milking equipment that is operating well and disinfecting teat skin after milking.

“We’ve had a great run - thanks to our vet support, and the proven performance of Eprinex®” Tom Goodwright, 2nd generation dairy farmer, Waiuku

FOREMILK STRIP COWS TO DETECT ABNORMAL MILK FOREMILK STRIPPING is used to detect clots, wateriness or discolouration in the first few streams of milk. Changes that persist for more than three squirts suggest a cow has mastitis. Quarters with a few flecks only in the first three squirts may be left untreated and checked again next milking.

Foremilk stripping involves the careful removal of two-four squirts of milk from each quarter before milking. An effective method, illustrated in SmartSAMM Healthy Udder is to roll the thumb down whilst holding the top of the teat closed. Foremilk should be stripped onto a black surface e.g. dark paddle, piece of black plastic, or a strip cup to aid detection of discoloured milk.

Milk with abnormal changes will usually indicate clinical mastitis, but foremilk stripping will also indicate blood in milk or milk not suitable to go into the vat.

Early detection of clinical mastitis is one of the main potential benefits of foremilk stripping. When practised at the beginning of lactation, it helps detect clinical cases earlier at a time when the clinical infection rate is highest, as well as accustoming cows to having their teats touched and providing an effective signal for milk ejection.

EPRINEX® delivers on herd reproduction, and more milk.

Check out our websites

For more information on EPRINEX® and getting the most out of your stock, visit your local vet.

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PROUDLY AVAILABLE FROM YOUR VETERINARY CLINIC Merial is a Sanofi company. MERIAL NZ LTD LEVEL 3, MERIAL BUILDING, OSTERLEY WAY, MANUKAU. AUCKLAND CITY, NEW ZEALAND, WWW.MERIALANCARE.CO.NZ REGISTERED PURSUANT TO THE ACVM ACT 1997 NO. A7191 | SEE WWW.FOODSAFETY.GOVT.NZ/ACVM/ FOR REGISTRATION CONDITIONS | NZ-13-EPR-069.

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DAIRY NEWS NOVEMBER 12, 2013

44 // ANIMAL HEALTH

Good hygiene practices keep disease away JOHNE’S

DISEASE is a chronic, contagious and sometimes fatal infection caused by Mycobacterium avium subspecies paratuberculosis (MAP). It is an immune reaction that develops in response to the MAP infection.

The bacteria affect the small intestine in ruminant animals and cost New Zealand up $40-88 million in lost production each year, according to DairyNZ. A major problem is that while most animals are infected shortly after birth, the signs are not immediate.

Most new infections occur in the first six months of life and calves are particularly at risk in their first 30 days. Infected animals excrete the bacteria in faeces in increasing amounts over years as the infection develops.

Even then, the disease usually remains sub-clinical in dairy cows with only occasional animals showing the classical wasting, persistent scouring and loss of body condition. Only in these older and clinically affected animals are the bacteria likely to be found in milk or colostrum.

At the advanced stage, signs of Johne’s disease include wasting and chronic diarrhoea, leading to emaciation. In the early stages it can only be identified through a blood test or testing faeces.

Johne’s disease is commonly spread from dam to calf, usually through faeces.

Because it is in the environment, spread through infected pastures and waterways, the disease is very contagious. It can only be limited by good hygiene practices – separating calves from

dams after initial feeding of colostrum and minimising contact between young and old animals.

Research indicates that up to 20% of New Zealand dairy farms have Johne’s disease, however only 2-3% of farms know they have it.

There is no country without Johne’s. Like the Johne’s Disease Research Consortium research underway in New Zealand, research programmes are also underway in Canada, Denmark, Australia, the United States and Ireland.

This disease can be transmitted between generations, so management starts with the planning of breeding, including buying only bulls known to be free of Johne’s and breeding, especially replacements, only from cows in good health.

Calves are particularly at risk in their first 30 days.

HERD MANAGEMENT VITAL

HYGIENE IS KEY HYGIENE WITH young calves is paramount in Johne’s disease control programmes, especially avoiding faecal contamination from older cows: Immediate post calving management needs care.

Each calf has to receive sufficient colostrum from a healthy dam.

Where dam health has not been properly considered then cross feeding of colostrum from another or mixture of dams potentially carries a

on the farm is essential and maintainA HERD health plan applied to every herd nt disease entry. preve to ing a closed herd is the best insurance engage your veterinarian plan, herd your ting When developing or upda ultural practices for animal health and include all young stock too. Good agric include: two years old prior to contact with adult ■■ Ensuring young stock are at least stock

significant risk.

Early separation after birth of the calf from the cow early is important provided it can be guaranteed that adequate colostrum has been fed Ensure calves do not graze in hospital paddocks.

■■

■■ ■■ ■■ ■■ ■■ ■■

separate locations until a quaranNot mixing groups of young animals from tine period has been observed ing: Managing the herd to resist disease includ Preventing entry of disease onto the farm Isolating sick animals ol Practising good hygiene and pest contr cines as prescribed Using all chemicals and veterinary medi Training people appropriately.

ZINC OINTMENT PREVENT SUNBURN, SUITABLE FOR ALL ANIMALS Use ZINC OINTMENT for the treatment of slight excoriations of the skin.

ZINC OINTMENT texture allows for easy spreading over affected areas making it ideal for applying to dairy cows.

Only requires once a day application. Nil milk and meat withholding.

Ask for AHD ZINC OINTMENT at your local rural or veterinary outlets.

0973

06 873 3611 | 1229 Maraekakaho Rd, Hastings | sales@ahdltd.co.nz | www.ahdltd.co.nz

DAIRY NEWS NOVEMBER 12, 2013

MACHINERY & PRODUCTS // 45

Mini feed mixer for small loads GARETH GILLATT

FARMERS FEEDING nursery cows and calves now have the option of making specialist feed combinations with a new 1.4m3 mixer from Power Farming.

The company has introduced the Jay-Lor A50 feed mixer to its lineup – a small volume mixer described by New Zealand Merlo and Jay-Lor sales manager Ken Bill as providing feed mixing capabilities to users not previously able to access them.

First introduced globally in January 2013, the mini-feed mixer was designed for the Asian market where the average herd may be as small as 5-15 and whose farmers feed only small volumes.

Bill says this makes the mixer ideal for nursery cows, hospital cows and calves which may

be missing out on the nutrients and minerals they need due to the low volumes of feed they eat.

“Large feed mixers don’t do a good job of mixing smaller volumes so operators would just mix extra and then save the last lot for the smaller herd.

“With the A50 you can mix a special blend with innoculants and minerals instead of having cows trying to compete for the same feed all the time.”

Farmers using the mixer in a calfshed will also see a benefit: calves finding feed more palatable, Bill says. “If calves are not fed as they are designed to be they develop a boney arch of a body – they are not full and they use most of their energy just maintaining their existence.

“As much as calves need meal and milk, they also need roughage and this provides it to them in a pal-

Jay-Lor A50 feed mixer.

atable form.”

While the unit can produce as much as 1.4m3 of material, Bill says it can produce as little as 50kg at one time, the average mixing time being 3-5 minutes depending on the ingredients.

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Power comes from a 13hp Briggs and Stratton Vanguard engine.

Transportation options are trailer, ute-mounted or stationary.

A 2.6m3 capacity unit is also available. www.powerfarming.co.nz

Fieldays space running out fast BUSINESSES EYEING a stall at National Fieldays

are being urged to act quickly.

Fieldays’ prospectus for the 2014 event, June 11-14, says 75% of outdoor agribusiness sites are now booked.

The 2013 show had 70% of sites pre-allocated.

All remaining sites are now on sale and businesses should apply before December 1 for the best chance of securing their preferred site. In 2013, 97% of sites had sold by February.

So far 346 companies have booked sites for 2014, expected to be big because of indications of a record pay-out by Fonterra.

Last year the show had about 900 exhibitors and 125,000 visitors.

National Agricultural Fieldays chief executive Jon Calder says Fieldays is “entering an exciting period of change and there are many new initiatives planned for 2014 and beyond.”

The premier feature and topical theme of Fieldays 2014 is ‘Managing Resources for a Competitive Advantage’. This questions how, in today’s highly competitive global economy, New Zealand can maintain its worldwide fame for being a great producing nation with innovative systems and high quality products and services.

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DAIRY NEWS NOVEMBER 12, 2013

46 // MACHINERY & PRODUCTS

Pond stirrers deliver balanced nutrient spread GARETH GILLATT

KEEPING EFFLUENT

ponds crust-free can be a set-and-forget exercise using shore-mounted electric pond stirrers, says Midwest Machinery marketing manager Andy Thomas.

The company recently introduced the 7m and 9m Nevada electric stirrers, which Thomas says cut much of the cost and effort out of keeping effluent mixed.

While effluent is now an integral part of a dairy farmer’s soil nutrient plan, Thomas says they often don’t get the optimum consistent spread of nutrients over all paddocks being irrigated.

Some paddocks become overloaded with black nutrient-rich effluent, while others get only slightly dirty water – a problem Thomas says can be resolved with the Nevada pond stirrers.

Consistent nutrient application can sometimes seem difficult to manage when dealing with a larger pond or effluent from intensive feed systems and feed pads.

In extreme cases mixing daily is sometimes required, Thomas says.

“One of our clients has a big herd with a smaller pond, and is using a highinput feed system. He needs to run his pond stirrer for about one hour a day to prevent it from becoming crusted.”

Thomas says electric pond stirrers are good in situations like this, where farmers are pumping into, or out of, their ponds frequently.

As electric mixers use mains power and can be set to work off a timer, Thomas says their running costs are lower than tractor-mounted stirrers, with less energy and labor requirements. The range of Nevada electric stirrers is from 7.5kw to 22kw. “With the timer you can set it to run on night power.”

As they are shore mounted with a V-belt drive, Thomas says the electric stirrers are easy to maintain and generally have a longer lifespan than submersible stirrers, which are more difficult to maintain or repair.

“The Nevada stirrers are galvanised, and are

manufactured in Germany to be more durable and higher performing than any other horizontal mixer in New Zealand. The base rotates 360 degrees so farmers can easily lift the propeller out of the water, spin it to shore and pump

it with grease in a short time.”

Tel. 0800 464 393 www.nevadanz.co.nz

Midwest Machinery says the new Nevada electric stirrer cuts costs.

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DAIRY NEWS NOVEMBER 12, 2013

MACHINERY & PRODUCTS // 47

New small tractors good around yards KUBOTA NEW Zealand is introducing a new level in sub-compact tractors – three models it says will keep all yard projects “in good hands”.

The 23hp BX2370, 26hp BX2670 and 25hp BX25D are said to make life easier for the operator: jobs will be more of a breeze than ever before, the company says.

All models now come standard with a high-back reclining seat with armrests.

A new steering wheel

has a smaller hub and is better positioned for improved dash visibility and ergonomics. The new dash is easier to read with a large analogue tachometer, digital gauges and easier to see warning lights grouped in the middle of the display.

A re-positioned brake pedal to the left side of the flat operator’s platform allows for simultaneous operation of transmission and brakes.

The new backhoe station is designed “with the

best ergonomics in this segment” and now comes standard with the same high-back reclining seat as the rest of the BX70 range.

A new feature on the BX25D is shock-absorbing cushioning valves on the hydraulic circuit; these take the shock out of operation when you reach the boom or swing maximums.

Power comes from Kubota designed and

built diesel engines “that deliver unparalleled power and performance,” the company says.

A range-wide foldable ROPS frame meets all SAE specifications, providing safe operation and the option of folding it down for added manoeuvrability under low hanging obstructions.

Kubota is imported in New Zealand by C B Norwood Distributors Ltd.

Kuboata’s new subcompact tractors.

The clever way to make silage App detects cows on heat RESEARCHERS FROM the Waikato Institute of Technology (Wintec), working at the AgResearch Tokanui research farm, are offering dairy farmers a way to cut the cost of missing cows on heat.

Wintec’s Agritec heat detection android app went live this month. It offers dairy farm workers a means of discovering when cows are on heat and ready for artificial insemination.

Free to download from Google Play, the app has images and videos to show the signs to look for in heat detection.

Wintec’s Agritec educator Dr Debbie Care is expecting the tool to be popular with farm managers keen to teach staff the signs of cows on heat.

“The window of opportunity for insemination is narrow – just 24 hours,” Care says. “If it’s missed the farmer has to wait three weeks for another opportunity.”

Missed heats are also expensive, costing at least $200 per cow, she says.

“This app is new to the market and it’s good timing. Uptake has been steady with 70 downloads already.”

The app has been farm tested and developed in consultation with industry professionals. Once downloaded it can be used without an internet connection “It takes the user through the visual and behavioural cues so they can detect heat with accuracy.”

Care says other apps, including one to help with ensuring milk quality, are in the pipeline. The technology is emerging from Wintec’s wider R&D work.

Download the Agritec heat detection app at Google Play for free: http://goo.gl/DSrGQV

less plastic, less labour When baling with the Lely Welger Tornado RPC 445 wrapper baler combination you are working with a one pass system. The Lely Welger RPC 445 makes bigger, higher density bales, with less plastic. Chopped silage can be compacted better for denser bales, meaning better quality silage!

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DAIRY NEWS NOVEMBER 12, 2013

48 // MACHINERY & PRODUCTS

Oz farmers target animal health when buying equipment A HIGHER awareness

of preventing cow health issues is showing up in the equipment buying patterns of northern Australian dairy producers.

“There’s a greater realisation now among farmers that prevention is better than cure,” says dairy sales specialist Jeff Russell from Russell and Sons, Toowoomba.

Russell is a fourth generation member of a family company that has sold equipment and services to the dairy industry since 1934.

“It’s important to focus on animal health to control somatic cell counts and get optimum cow production,” says Russell.

“Producers are being proactive rather than waiting for a problem to emerge which can cause headaches.”

He says a lot of health problems stem from wet weather. “We had a serious drought in this part of the world which went for 15 years. During that time there was a lot of consolidation into bigger herds.

“When the flood sea-

sons came there were a lot of issues managing animal health and keeping milk to an acceptable quality standard.

“Problems continued on sodden properties right through the first half of this year until it suddenly turned dry these past few months.”

Dairy factory milk testing and penalty payments also put pressure on farmers to pay much stricter attention to somatic cell counts and keep on top of mastitis in their herds.

Russell and Sons joined

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Steve McCarthy, East Greenmount, with Jeff Russell, Russell and Sons, with a hoofmat.

“The mats are easily topped up with a watering can and are economical on the amount of active ingredient used, whether it be zinc sulphate or a proprietary solution.

“Environmental issues of having a footbath full of treatment solution are also avoided,” Tossol says.

Shoof also introduced its new hoof protection product Walkease, invented by the company’s product development manager Peter Griffiths.

The block of flexible EVA cushioning material protects an injured hoof while it heals.

The blocks come in dif-

ferent sizes to fit all claws, marketed in a pack with glue designed to hold for 7-14 days.

Shoof also markets products designed to give early warning of mastitis.

The Mas-D-Tec measures changes in conductivity, pH and the number of white blood cells.

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

Superheat mains pressure domestic cylinders now available Available from your local dairy merchant.

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

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

with equipment and product company Shoof International for a farmer event in Toowoomba on October 23.

Shoof, in business since 1974, sources and markets animal health and handling equipment and veterinary products from around the world.

It displayed products including Hoofmat, an alternative to footbaths to treat cattle feet. The mat has a foam core and poly fabric outer layers to hold a solution which treats the hoof as the animal walks over it into the milking bails.

Hoofmats come in standard and heavy duty versions which can hold 50 L of solution and last up to a million cow passes.

“They are a good alternative to a foot bath because the treatment is pushed right into the claw when the animal puts hoof pressure on the mat,” says Shoof Australia sales manager Barry Tossol.

“The treatment gets a good chance to work into the clean hoof as the animal stands for milking.

or phone 03-389 9500 for details of your local merchant

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NEW SIZES AVAILABLE Now with stainless steel inner barrel and stainless outer case 350 ltr 710 dia x 1670 2 x3 kW 400 ltr 710 dia x 1860 2 x 3kW 450 ltr 710 dia x 2010 2 x 3kW 500 ltr 810 dia x 1690 2 x 3kW 600 ltr 810 dia x 2100 3 x 3kW 700 ltr 810 dia x 2370 3 x 3kW Standard range available with copper barrel, galvanised or stainless case.

Larger sizes with stainless barrel and plastic case.

Paul Saleem, Shoof, shows a milk quality tester to Robert and Veronica Cassells, Mt Sylvia.

DAIRY NEWS NOVEMBER 12, 2013

MACHINERY & PRODUCTS // 49

Wood choppers will have a ball at field days WITH PREPARATIONS underway

for the 2014 Central Districts Field Days, the March 13-15 event is shaping up to be the best yet, says the manager.

“The [event] is the largest regional field days in New Zealand and this year we are celebrating our 21st birthday which makes it even more special,” says Cheryl Riddell.

“The field days are a premium marketing opportunity and we have a great line-up of exhibitors and competitors returning.”

At least 38,000 people are said to have attended this year’s event and Rid-

dell hopes with the event celebrating 21 years in 2014, plus a growing list of exhibitions, the number will rise. Many old favourites are returning and some new attractions will appeal to farmers and rural townies.

“Re-bookings are going well; 75% of previous exhibitors are already on board and with just over four months to go, I am sure spaces will continue to fill fast.”

Massey University will sponsor the Massey University Agriculture Pavilion.

Husqvarna will sponsor the wood chopping arena.

Wood chopping has always been a

crowd pleaser with young and old says former wood chopper Gordon Brooker who, with wife Carol, were the event coordinators. And they may be again, he says, but he’s not sure.

“Carol and I with assistance from members of the Taranaki Axemen Club organised the wood chopping competition during the 18 years Husqvarna sponsored it.”

He also says the Husqvarna Wood Chopping event has always enjoyed support from local businesses and the wider community and hopes that support will continue.

Cool boot for hot days SUMMER FOOTWEAR just got better for anyone needing to wear gumboots year-round, says the maker of the new Quatro Light boot.

Skellerup Footwear says its new boot remains com-

fortable on the feet regardless of the season, because it’s custommade for summer conditions.

“Designers have kept the key features of the original Quatro, but removed the insulation in favour of advanced new quick-dry linings for hot days,” says Skellerup national manager Perry Davis.

He says changes and improvements to the new boots came about by their listening to the market.

“One of the complaints we’ve always had about the original Quatros – if you can call it a complaint – is that they’re too warm for summer and farmers who wear them constantly during the cooler months of the year get a bit of a shock when they have to go back to ordinary gumboots as the days warm up.

“Quatro Light keeps the comfort factor, but doesn’t have the same insulation so it’s a practical alternative for

summer.”

He says as well as developing lightweight, quick-drying linings for the new boot, Skellerup designers added other special features.

“The linings are smart – fast drying, anti microbial and anti fungal, and also capable of wicking moisture away from the feet. And there’s excellent ankle support with a rigid heel counter, a cushioned rubber midsole with arch support and a raised shock absorbing heel pad.”

The hardened rubber toecap and raised forefoot protection help keep feet safe from impact while a fibreglass shank provides extra stability.

The uppers are fully clad UV resistant natural rubber to stand up to tough conditions and if summer rain brings mud, there’s a high abrasion cupped rubber outsole with tapered mud release cleats.

Davis says, “The first Quatro marked a turning point in farm footwear, and we know from the people who wear them what a difference they make in daily wear.”

Buy them from rural retailers.

About 38,000 people attended the Central Districts Field Days in 2013 and organisers are planning an even bigger and better event for their 21st celebrations.

“We are currently looking for sponsors for the wood. We need about 500 chopping blocks for the competition and if there are any farmers or lifestylers out there who may have pine or poplar trees they want to get rid of, we would like to hear from them.”

Brooker says trees can be pruned or unpruned and must be at least 250mm in diameter.

“Central Districts Field Days is a great event for Feilding and the greater Manawatu and the wood chopping has

been a big part of this. It has always been a popular attraction and I believe the crowds will continue to flock to it.

“We often had 1000 people in the crowd watching the competition and it is the one place at field days people can sit down to watch and relax,” Brooker says.

No chainsaws – just old-fashioned wood chopping with 12 competitors cutting at one time.

To sponsor the wood chopping or donate trees, call Gordon Brooker 0274 430698.

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SERIOUS effluent pond stirring With the new range of electric pond stirrers.

Think your pond is too big for a single shore-mount stirrer?

Think again. Nevada’s electric stirrers, with Typhoon propeller technology, are powerful enough to stir dairy effluent volumes in excess of 5 million litres.

0800 464 393

Call or visit www.nevadanz.co.nz for more info.

DAIRY NEWS NOVEMBER 12, 2013

50 // MACHINERY & PRODUCTS

Ute polls high in safety THE FORD Ranger was the most popular new ute last month, says Ford. It sold 497 Rangers, beating its nearest competitor by 84 vehicles.

“Kiwis are finding the Ranger to be the ultimate

the top five utes in New Zealand, it’s the only one to have a 5 Star Euro NCAP and 5 Star ANCAP safety rating across the entire New Zealand range, including the segment’s most popular variant, the

Ford Ranger

“It’s important a vehicle is safe; and there is no safer ute than the Ford Ranger.” multi-tasker, serving as a capable workhorse… and a comfortable and safe vehicle for the family on evenings, the weekend or holiday road trips,” says Corey Holter, managing director Ford New Zealand.

“It’s important a vehicle is safe; and there is no safer ute than the Ford Ranger. In fact, of

double cab.”

Designed and engineered in Australia, the Ford Ranger has won car and 4WD of the year awards and was the first ute to be awarded a 5 Star Euro NCAP safety rating, followed by a 5 Star ANCAP safety rating.

Safety features include reinforced passenger cell using high-strength steel,

dynamic stability control (DSC), traction control system, hill descent

control, hill launch assist, trailer sway control and adaptive load control,

roll-over mitigation, airbags, three-point seatbelts for all seats with

Beltminder technology, seatbelt pre-tensioners with load limiters and

ABS anti-lock brakes with gravel logic control.

www.ford.co.nz

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Keep magnesium levels in check MAGNESIUM PLAYS a vital role in a herd’s overall

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health, even more so in high performance herds, says Animal Health Direct Ltd (AHD).

The company sells a magnesium supplement called Oral–Mag containing 25% magnesium pidolate.

AHD says correct levels of magnesium in a cow enable her to function normally. Dusting has a degree of wastage – up to 50%, it says.

“If the quality of a magnesium supplement is questionable and you have a high percentage of wastage, this may cause a herd to suffer from a lack of magnesium.”

If this is identified and a herd has a high demand for magnesium then Oral-Mag will help, the company says.

“This oral supplement… will ensure a herd has sufficient levels of magnesium.”

Claimed features and benefits are: ■■ 25% magnesium pidolate which is easily metabolised ■■ A high degree of bioavailability, meaning a cow can utilise what you are giving her ■■ Retained for up to 10 days ■■ Palatable smooth consistent ready-to-use formulation that is easy to drench ■■ Can be administered along with other forms of magnesium supplements.

■■ 20L will treat 200 450kg plus cows. It is packed in 20 and 200L containers and is sold by rural supplies stores and veterinary centres.

ELE-00823-DN

To help your calves reach target weight you need to use the right drench at the right time. COOPERS oral combination drenches contain levamisole – the active that’s most effective for targeting Cooperia in young cattle.

And by choosing an oral combination, you’ll provide reliable delivery AND reduce the risk of worm resistance worsening on your farm.

For advice on best-practice drenching, visit www.coopersonline.co.nz or scan the code to take you straight there. ®

Registered trademark. COOPERS Phone: 0800 800 543. www.coopersonline.co.nz CALF-255-2013

Getting it right, together Whether you’re farming beef, dairy, deer or sheep, PGG Wrightson has the technical expertise to help you choose the best products for your animal health needs.

For the latest information around internal parasite control, minimising drench resistance and maximising production with products that work within your budget, talk to your local team.

ALLIANCE® A quality low-dose triple combination oral drench with tapeworm control. Use for monthly drenching for sheep (over 20 kg) and cattle (over 100 kg) for better worm control. Contains selenium and cobalt.

Grocery voucher offer applies to 10 L.

CONVERGE® A tough low-dose abamectin levamisole combination oral drench, for sheep (over 20 kg) and cattle (over 100 kg). Use when you need a change from BZ/levamisole oral combination drenches.

Contains selenium and cobalt.

Grocery voucher offer applies to 10 L.

SCANDA® Plain or Selenised Convenient low-dose dual combination for treatment of all important sheep and cattle internal parasites including Cooperia. Ideal for the treatment of young cattle.

Get one grocery voucher when you buy 2 x 10 L Plain, 2 x 10 L Selenised or 1 x 20 L Selenised.

Outlaw Abamectin levamisole combination pour-on for the treatment and control of internal parasites, including endectocide resistant strains, lungworm and sucking lice in cattle.

Grocery voucher offer applies to 2.5 L.

EDGE Injection Doramectin levamisole combination injection for the treatment and control of internal parasites of cattle. Also aids in the control of sucking lice. Ideal for cattle where oral drenching is not an option.

Grocery voucher offer applies to 2 x 500 ml pack.

*Offer valid 1 November 2013 to 20 December 2013. Receive one $30 grocery voucher with selected animal health products purchased at full retail pricing only. Offer does not apply to other special offers, trade purchases or promotions unless specified. Available while stocks last. See participating products and full terms at www.pggwrightson.co.nz.

www.pggwrightson.co.nz | Freephone 0800 10 22 76

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