Dairy News 8 July 2014

Tatua switches from Fonterra to OCD. PAGE 3 NEW FEDS DAIRY CHAIR

Hoggard in unopposed PAGE 4

SEE PAGE 14

JULY 8, 2014 ISSUE 316 // www.dairynews.co.nz

READY TO SPREAD THE WORD Sustainable farming champions Mark and Devon Slee.

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DAIRY NEWS JULY 8, 2014

NEWS // 3

Tatua switches to OCD for milk PETER BURKE peterb@ruralnews.co.nz

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INDEPENDENT WAIKATO processor Tatua Dairy is to buy its extra milk from Open Country Dairy, ending its long-standing relationship with Fonterra.

Tatua chief executive Paul McGilvary told Federated Farmers Dairy section conference last week the deal with Open Country means they can buy OCD milk on a much ‘flatter profile’ as opposed to Fonterra’s more ‘seasonal profile’; price is also a factor.

“Fonterra’s price for milk is relatively high as opposed to Open Country’s, particularly if we buy closer to the peak of the season,” he says.

“The decision was mostly economic and certainly wasn’t any kind of relationship issue. At a commercial level we have a very good relationship with Fonterra and in fact we probably find we have more things in common than in opposition. But

just on the milk one we feel we can do a better deal elsewhere.”

Tatua is celebrating 100 years as a cooperative and McGilvary cites several reasons why it’s been so successful. These include visionary leadership and a strong focus on customers whom they treat like family, bending over backwards to meet their needs. One advantage of being small is they can be agile and do things at speed which larger organisations might struggle with.

“For example, if we want to talk to all our farmers we can literally send them emails and contact them and probably have a meeting later the same day if we need to.”

He says explaining things in a simple way is important given the increasingly complex nature of farming and the rules it has to comply with. This particularly applies to environmental matters.

“There is enormous power in reducing that to simple things people can understand because then you are more likely to get action. We are working with our farmers all the time to interpret all the

Paul McGilvary says Tatua gets cheaper milk from Open Country

various changes going on and to try to make it easy for them to understand the changes. We are also trying to show the way by what we are doing in the factory.

“My firm belief is that Tatua will have a net water take of zero and I think we can return to groundwater that is cleaner than when we took it.

If we can show the way, farmers will get the confidence to do more in their own operations.”

CHINA OFFICE TO KEEP TAB ON SUPPLY CHAIN

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TATUA IS to open an office in China as part of its goal to build relations with this key customer.

Chief executive Paul McGilvary says they want to be able to know where their products are going and be able to control their supply chain.

“We can no longer sell only to agents and then let them do what they will with the product. We need to know what’s happening right though to the customer and we also need to technically support the product so the customer can get the maximum value out of it. The China office is designed to do exactly that.”

Meanwhile Tatua is making the biggest investment in its 100 year history by installing a $65 million drier.

It will be used to dry reconstituted products and produce a new range of high value exports.

Tatua says it wants to know where its products are going

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4 // NEWS

‘Focus on labour, environment’ regulations are based around large factory settings and not small business peterb@ruralnews.co.nz like ours. It’s a lot easier for large factories to comply with all these rules as opposed to small business because they FARMERS MUST lift their game on have got a whole lot of other stuff they environmental and labour issues over are dealing with,” he says. the next three years.

Hoggard, who farms in the That’s the message from the newlyManawatu and uses technology extenelected chairman of Federated Farmers sively on it, says he hopes he’s lookDairy, Andrew Hoggard. ing for technology Hoggard, who replaced answers and Willy Leferink, is hopeful that “We do need to lift our game and have for to make the job of new technology in both areas compliance easier. may provide some answers. better procedures in place.”

He says some of Hoggard was elected unopthe recording is posed at the Feds annual conwhat was dangerous, I grew up on that still paper based and he is hoping for ference last week.

According to Hoggard, while some farm. I knew what was dangerous, I change.

“One thing that IT could provide excellent progress has been made on knew what was safe and I knew what to the effluent management front, not all do. Did I keep a record of my hours? No relates to simple record keeping. I’d regions around the country are up to the it was just me. I worked till I got the job love my staff to be able to hit a stop/go compliance standards. But he says when done. Now I employ people and I can’t button on their cellphone when they he looks back at what has happened in put that same expectation on them,” start and stop work which automatically goes into my farm accounting software. his own region – Manawatu/Wanganaui he says.

“When I come to do the pay slip Hoggard says he has to have proceover the past eight years farmers have made a phenomenal investment in envi- dures and other things in place because at the end of the week I can see what ronmental management. He says a lot that is the changing face of dairy work hours they have worked and it’s all sorted. That would be just one way of of knowledge has been gained and it’s with more staff involved.

“We do need to lift our game and how it could be made much simpler and important that the rest of the country have better procedures in place and it easier,” he says. comes up to that standard.

Hoggard says it’s important that the He says in regards to labour issues, is a challenge because a lot of our labour PETER BURKE

conditions onfarm have changed markedly in recent years and compliance issues are something farmers have to deal with. He says the rules have always been there but haven’t been enforced to the degree that they are now.

“When I started off it was just me sharemilking 150 cows. Did I need to know about a health and safety plan?

No, back then it was just me. I knew

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New Federated Farmers Dairy chairman Andrew Hoggard.

farming industry, including dairying, has a good reputation as employers so that they can attract good young people to take up farming.

He says the dairy sector with its sharemilking system and other career pathways offers good opportunities for young people.

Hoggard is a strong believer in the cooperative movement for the dairy sector and says it’s an excellent system.

But he has concerns at the growing number of private processing companies that are appearing on the scene – especially if they are foreign owned.

“It is one thing that does scare me.

If we have foreign owned land, producing milk for a foreign owned processor, where are the returns to New Zealand?

“That’s not front and centre of the big issues at the moment, but it is in the background,” he says.

DAIRY NEWS JULY 8, 2014

NEWS // 5

Prices should bounce back – Tatua

Synlait’s FEP first past ECan’s post ANDREW SWALLOW andrews@ruralnews.co.nz

DUNSANDEL PROCESSOR SynINDEPENDENT PROCESSOR

Tatua remains hopeful of global dairy prices bouncing back.

Tatua chief executive Paul McGilvary says the balance between demand and supply of dairy products is at play.

Since February, global dairy prices have dropped by 30% which McGilvary says is a “steep decline”.

“It’s how that balances out with the demand from China which has been a bit down,” he told Dairy News.

“China had a very difficult time last year with the supply of their internal market.

“This year I will expect they will have slightly less problems and therefore their own supply will be a bit better.”

McGilvary says he believes the high payouts of last season will return at some stage given the volatility of the market.

“You’ve got a market dynamic in having a great range of countries within the Asia Pacific region who are getting wealthier and the first thing they do is upgrade their food consumption, particularly for their children.

“That growth in wealth within these countries is going to drive demand for our products and I can definitely see it pushing payouts further up.”

Last week’s GlobalDairyTrade auc-

Mixed bag: Skim milk powder prices rose while whole milk powder prices slumped in the last GDT auction.

tion saw the GDT price index drop 4.2% to US$3756 a tonne, the eighth consecutive drop and the lowest since February 2013.

Rennet casein slumped 10.2% to US$10,672 a tonne, and whole milk powder sank 8.5% to US$3594 a tonne. Anhydrous milk fat slid 5% t to US$4058, while butter milk powder fell 1.9% to US$3628 a tonne.

Butter was unchanged at US$3634 a tonne.

Cheddar climbed 8% to US$4236 a tonne, while skim milk powder rose 2.1% to US$3863 a tonne.

Milk protein concentrate and lactose weren’t offered at the event.

There were 144 winning bidders out of 195 participating bidders at the auction over 13 rounds. The number of qualified bidders was 738, up from 734 two weeks ago.

Last month Rabobank warned that producers may have to wait until 2015 for a revival in prices, with milk output much improved in major exporting nations, but Chinese buyers having stepped back, after early-year stockpiling.

“China bought more than we anticipated in the first five months of the year. It now appears they also bought far more than they needed,” the bank says.

lait Milk has gained an industry-first from Environment Canterbury (ECan) which promises to save its suppliers serious duplication of paperwork.

ECan last week said the farm environment plan (FEP) template in Synlait’s farm sustainability certification programme Lead With Pride is the first that meets the requirements of its Land and Water Regional Plan.

Synlait Milk managing director John Penno said ECan’s approval of the template means Synlait suppliers working within the Lead With Pride programme “are now able to cover off their responsibilities under the proposed Land and Water Regional Plan as well as meet our standards for best practice leadership in food safety and sustainability in a onestop-shop system.

“It comes at no charge to them and they receive a financial reward [from Synlait Milk] once they become certified,” he added.

When Lead With Pride was launched last year premiums of up to 12c/kgMS were indicated (Dairy News, April 30, 2013).

While Canterbury’s Land and Water Regional Plan is still subject to appeals on points of law to the High Court, whatever the outcome of those it seems likely FEPs will remain a key element in gaining consents to farm with nutrient losses above certain thresholds. Those thresholds are being thrashed out catchment zone by catchment zone across the region, but the

John Penno

default level ECan has set is 20kgN/ha/ year as calculated by Overseer for nearly all the intensively farmed areas.

Announcing the Synlait FEP approval, ECan chief executive Bill Bayfield said the template meets all requirements of the Land and Water Regional Plan.

“It is… reassuring to see in this template a methodology that will enable development of plans identifying actual and potential environmental effects and risks to properties, that addresses those effects and risks, and has a high likelihood of appropriately avoiding, remedying or mitigating them.

“We hope the farm environment plans that come from this template are valuable both for farmers and for Synlait.”

Bayfield says irrespective of the rules, ECan is encouraging all farmers to prepare FEPs. Where they form part of a consent application ECan has previously indicated that the consent will be for land use according to the FEP submitted.

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6 // NEWS

Crop farmers could do with cow poo Wallace and others are doing greenhouse studies of if and when andrews@ruralnews.co.nz the organic fraction of nitrogen in effluents becomes available. So far it looks like there’s about a oneARABLE FARMERS are being month lag. encouraged to consider dairy effluent “At four weeks we found we were as an alternative source of plant nutristill losing nitrogen. Then mineralients, notably nitrogen. sation kicks in and we start talking But they’ve been warned nutrient about that organic nitrocontent is variable and it gen becoming availmay be necessary to top up able.” with fertiliser nitrogen to “Effluent is not fertiliser, so plan A problem with the maintain maize yields. for that and manage accordingly” immediately available “Effluent is not fertiliser – Dirk Wallace nitrogen in effluent – the so plan for that and manage inorganic part – is retainit accordingly,” Plant and “As drymatter increases so does the ing as much as possible for the crop and Food Research’s Dirk Wallace told the Foundation for Arable Research con- total nitrogen concentration,” Wallace minimising losses to atmosphere.

Field trials with maize grown after ference in Palmerston North last week. pointed out.

The problem from the grower’s per- effluent applications found anything That means testing for nutrient content just before application, “not five spective is when that nitrogen will be more than a nine-day delay between days before at the pond you’re going to available to the crop, as organic nitro- application and sowing cut yield.

“So put it on and get it in and it will gen will be held in the soil until it breaks get it from,” stressed Wallace. help you to grow the crop.”

The disturbance of ponds or heaps down.

Incorporation into soil, ideally by “The form you want to grow crops is and possible interim storage can cause changes in nutrient content with shifts inorganic nitrogen; that’s immediately injection, also reduces losses to the atmosphere. However, liquid effluents in the organic-to-inorganic (ie imme- available,” he says.

ANDREW SWALLOW

diately available) nitrogen ratio, and total amount of nutrient due to losses as ammonia to the atmosphere through volatalisation.

For crops a high nitrogen effluent is preferable as it will reduce diesel use in application and compaction risk as fewer passes are required to apply the same amount of nutrient.

Arable farmers are being encouraged to use dairy effluent, but top it up with fertiliser.

tend to have lower nitrogen content so high-rate applications can saturate soils causing problems with subsequent field work and sowing.

“Discing wet soil is rubbish for soil structural qualities,” noted Wallace.

Across six field trials it was found 20-50% of the nitrogen applied in effluent was recovered by maize crops, with yield off effluent averaging 14.0t/ha compared to 13.3t/ha off conventional fertilisers.

However, the recovery rate of nitrogen could pose a problem in some regions if councils cap total nitrogen

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Use of dairy effluent in cropping systems could be an environmental win-win, reducing leaching losses from dairying while cutting synthetic fertiliser use in arable systems.

“60% of [greenhouse gas] emissions from the arable industry are related to synthetic fertilisers,” noted Wallace.

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DAIRY NEWS JULY 8, 2014

NEWS // 7

Back to farming for Leferink FORMER FEDS Dairy chairman Willy Leferink says it’s back to farming with just a little involvement in farmer industry matters.

The Canterbury dairy farmer has stepped down after the standard three years in the role. He rates his role in the Sustainable Dairy Water Accord and the Dairy Regulation Act as two major successes. He also says he helped develop relationships with dairy companies, DairyNZ and a range of other stakeholders and helped bring TAF (trading among farmers) to a ‘reasonable conclusion’.

“I’m all about bringing people together. I learned very early on in life as a manager of a freezing works that if you couldn’t take your people along with you it made it hard for you,” he says.

In terms of unfinished business, nutrient management is at the top of the list he says.

“We are only a quarter of the way there, if that. There is a helluva lot of

Oceania Dairy’s Glenavy plant.

Canterbury plant raising steam Willy Leferink with DairyNZ chairman John Luxton at the Feds annual conference.

energy that has to go into that process and it needs to go much better and it needs to go in a way that it doesn’t become a huge cost to the farming community. We have to be very careful that through regulation we don’t kill the goose that lays the golden egg,” he says.

Another ongoing issue, says Leferink, is dealing with Fish & Game. He says they talk regularly with them. He

says they have smart systems that enable them to win over boards of inquiry. “So we can learn from them.

They had some good points when they highlighted the issue of cows standing in the creek. We had to react to it and justify it. So we solved that issue.”

Leferink says Federated Farmers and the dairy industry as a whole need to be more proactive than in the past – especially nutrient management.

COMMISSIONING OF Oceania Dairy’s new $214 million dairy plant has started at Glenavy, South Canterbury.

Chief executive Aidan Johnstone says dry commissioning work is underway on the chilled water system, the waste water treatment system and the bore water systems, and the boiler has been fired up to deliver steam.

“Construction will be completed in time for the arrival of our first milk supplies,” says Johnstone.

“We will then run a further six weeks of commissioning and performance testing before the final handover of the

factory from construction to production by the middle of September.”

Staff have also moved into the office building at the new processing plant; 63 staff are now located on site in advance of completion of the new factory.

“Our staff are pleased to be able to co-locate on the Glenavy site after almost 14 months of running dual operations on site and in Timaru,” says Johnstone. Staff numbers are expected to exceed 70 by the time the factory starts receiving milk in late July; it is still recruiting for positions in the laboratory, warehouse and office.

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DAIRY NEWS JULY 8, 2014

8 // SOUTH ISLAND DAIRY EVENT

King tide of supply floods markets causes prices to dip ANDREW SWALLOW andrews@ruralnews.co.nz

MANY SPEAKERS

latched onto SIDE’s Riding the Wave theme, including opening speaker Hayley Moynihan, who said a “king tide of supply” had hit the dairy market “shore” resulting in the recent price crash.

But Rabobank “sees the supply side easing in the second half of 2014” and while a lot of milk is yet to be absorbed by global markets, towards Christmas or in early 2015 it’s expected prices should rally towards US$4000/t, she said.

Possible “upsides” Delegates at SIDE 2014.

which might prompt movement sooner, or higher, are if the forecast El Nino intensifies, or China’s inventory turns out not to be as large as thought, or its domestic production doesn’t stabilise as expected.

On the “downsides” Moynihan pointed to a possibly slower global retail recovery, more persistent supply growth in post milk-quota Europe, and geopolitical instability in areas such as the Ukraine and Russia which could force European product into other markets.

But later in the conference Fonterra chief exec-

utive Theo Speirings said Russia falling out with Europe, which currently supplies 85% of its dairy imports, could be a positive for New Zealand. “If that stops, where are they going to get it from?”

In five years the Russian market could even be bigger than China, he suggested.

Speirings spelt out Fonterra’s strategy to shift its product mix up the value chain, reducing traditional cheese manufacture and casein production, while accelerating investment in cream cheese, mozzarella, UHT, nutritional products and special milk powders. Whole and skim milk

powder, butter and anhydrous milk fat production will be grown in line with market growth.

The aim is to raise the average value of sales from 90c/L at present – 30% behind the global export average of $1.2/L – to $1.15/L. But for all the focus on adding value, Speirings stressed Fonterra is “still the envy of the dairy world” and uniquely competitive on commodity products. “We can make a lot of money out of commodity products and build something else on top of it.

Nobody else can do that.

They are all underwater on commodity products.”

He also promised an aggressive strategy on milk supply, going after “every litre of milk” with the overall aim to build Fonterra’s position as the largest global exporter of milk products. “Currently we reach 1.2-1.3 billion consumers. We can step that up to 2 billion people based on six milk pools, but we really have to make a difference in their lives.”

The current portfolio of at least 60 brands will be slashed to five: Anchor, Anlene, Anmum, Mainland and Fernleaf. Questioned why Fonterra’s logo doesn’t appear on retail packaging, he said it might once the “dots” of

the strategy are joined, but at present there’s no equity in Fonterra as a brand. “If a company logo appears on the front of a pack, and it does not have equity, it’s a risk,” he explained.

In New Zealand alone at least $800m is being invested in facilities to add value to the product mix and avoid the 60-day peak supply problem faced last year when Fonterra’s “back was to the wall.”

“We want 10% flexibility over that peak.”

That $800m investment “does not include Lichfield,” Speirings said,

Hayley Moynihan

alluding to a proposal to build a powder plant at the Waikato cheese site. Nor does it include “a possible next step in the South Island” where supply is still growing very fast and will hit capacity constraints pretty quickly, he added.

Fonterra later confirmed to Dairy News the Lichfield proposal has yet to be signed off by the board but resource consents have been applied for.

OFFSHORE PRODUCTS COULD PUT NZ BRAND AT RISK SPIERINGS’ STRATEGY to leverage off Fonterra’s New Zealand origins with globally sourced product was questioned by SIDE delegate and Green Party primary production spokesperson Steffan Browning.

“What’s your strategy to ensure ‘brand New Zealand’ is not diluted?” he asked.

Speirings answered that Fonterra’s strategy would “make ‘brand New Zealand’ stronger rather than weaker” and the New Zealand brand needs to mean “more than just 100% pure”.

Browning later told Dairy News his

concerns weren’t allayed by Speirings’ answer and that as the pool of globally traded milk increased, and New Zealand’s share decreased, it would be increasingly important that New Zealand product is just that, and shown to be the best.

Any failure in the brand in dairy, perhaps due to overseas sourced product marketed by a New Zealand company, risked damaging the brand for all sectors, not just dairy.

“We need to protect the New Zealand brand whatever the sector, for the benefit of all sectors.”

DAIRY NEWS JULY 8, 2014

SOUTH ISLAND DAIRY EVENT // 9

SIDE snippets...

Out with ideology, dogma “GET RID of the ideology, get rid of the dogma and get involved in the debate,” dairy farmer John Sunckell told SIDE delegates during his Selwyn Story workshop.

Sunckell has been one of several farmers on the Selwyn-Waihora zone implementation committee that recently reached consensus with other community members over a plan to manage the catchment’s nutrient limits.

“Science is not necessarily a friend,” he warned, adding “Mike Joy is in the right space” on the environmental issues, but cultural, social and economic values have to be brought to the table too.

“You have to give back all the things that don’t really matter to gain all the really important stuff back from the others.”

Worried as all get-out “DAIRYING IS becoming an overwhelming part of Landcorp’s business,” said chief executive Steve Carden.

“That’s exciting because it’s going quite well but also quite alarming. We could do really, really badly if the payout was less than $6/kgMS and that worries the heck out of me because it’s not that long ago it was less than $6/kgMS.” Carden reflected on his first 10 months at the helm and sought to dispel some myths about Landcorp.

“I sure as heck did not uproot my family from Melbourne to go to work for a government department,” he said, reflecting on Landcorp’s stateowned enterprise status.

In 27 years it has returned half a billion dollars to governments in dividends and received no funding in return. Only once has it failed to make an annual profit.

Cellphones and backpacks “PLEASE DO not turn off your cellphones,” event committee chairman Paul Marshall asked delegates as the three day event began.

“Put them on silent, but keep them on,” he urged, explaining that workshop feedback forms could be filled in online using a dedicated conference app instead of the usual fill-in and tear-out forms.

The app included a full schedule of proceedings and allowed organisers to send real-time updates.

Another departure from the conference norm was a switch to backpacks instead of satchels.

Staying on the wave demands making right choices – Mackle DAIRYNZ CHIEF executive Tim Mackle was another

to latch onto the Ride the Wave theme, admitting during his conference opening comments to having “dabbled” in surfing in his youth.

Just as a surfer has to pick the right wave – one that’s steep enough to get him going but not so steep it will dump him on his face – Mackle said the farming parallel might be picking business partners or the right location and farm.

Similarly, surfers have to be fit enough to catch the wave, and be in the right spot to do so, watching out for “snakes” who “drop in” on what was to be their wave.

“Everybody wants to ride your wave at the moment. I don’t think riding a wave is much fun with a whole lot of other people on it,” he commented.

Having the necessary skills was another parallel. “If you’re not skilled you’re not going to be able to stand up on that wave,” he warned, repeating the estimated annual need for 1000 graduates at diploma level or above coming onto farms.

“And you’ve got to watch out for the things that are going to knock you off your board,” he warned, listing environmental issues and public perceptions as parallels.

DairyNZ chief executive Tim Mackle (right) chats with Stephen Browning, Greens.

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10 // NEWS

New limits on water our merchandise exports “It’s not an either-or Environment Minisour farming practices, but and largely depend on situation – we need both. ter Amy Adams says this I know farmers are up for has announced new freshwater, while tourism Primary industries conmeans, for the first time, the challenge,” he says. national standards for also relies on the beauty tribute more than 76% of rivers and lakes will have More than 60 freshwafreshwater that they say of New Zealand’s water ter scientists from public, will make a significant bodies. private and academic secimprovement to the way “We all want sustainable and We all want sustaintors across New Zeafreshwater is managed. profitable primary industries.” able and profitable priland have come up with Environment Minmary industries. That will numeric values proposed ister Amy Adams and Nathan Guy mean changes to some of for the national standards.

Primary Industries Minminimum requirements ister Nathan Guy say the that must be achieved so changes announced are a the water quality is suitcritical milestone in the able for ecosystem and Government’s drive to human health. improve water quality.

“Ensuring an on-going The National FreshFONTERRA SAYS the Government’s announced changes to “Fonterra and our farmers have been taking part in a collaborand reliable supply of water Objectives (NFO) the National Policy Statement for Freshwater Management lay the ative community approach to develop environmental limits. We healthy water is one of set national standards or groundwork for consistent and robust decisions about the managewant these discussions to be based on sound science and ecothe most important envi‘bottom lines’ in terms of ment of New Zealand’s freshwater. nomic analysis, and we believe these national standards will help ronmental and economic fresh water quality stanFonterra acting group director cooperative affairs, achieve this. issues facing New Zealand dards and water allocaSarah Paterson, says last week’s announcement is “We are committed to lifting environmental today. It is critical that we tion. All councils must an important step towards a nationally consistent performance and improving water quality in New give effect to these in their protect and improve the approach to managing freshwater.

Zealand. Fonterra’s farmers have mapped every water quality that we all regional plans and meet At the same time it gives communities the tools waterway and fenced 23,500km of waterways. Nutrithese minimum standards, care so much about,” she they need to make decisions about their waterways, ent data has been collected from nearly 4000 farms says. but they also have the she says. to provide information on mitigating the impact of Primary Industries option of setting higher Paterson says regions across the country have nutrients,” say Paterson.

Minister Nathan Guy says standards if there is local been grappling with the challenge of setting workable “We recognise the huge amount of work that has support for this. The NFO the changes balance ecoenvironmental limits. Setting national standards for so far gone into preparing these national standards, nomic growth with enviare part of the Resource freshwater will provide greater clarity on the science and we welcome the continuing efforts being made Sarah Paterson ronmental sustainability.

Management Act. that needs to underpin environmental limits. to complete the task.”

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NEWS // 11

Aussies target Middle East trade JOHN DROPPERT

ASIA TENDS to be the

focus for Australian export market development, and rightly so.

In total, 70-75% of Australia’s dairy exports by volume go to Asian destinations, and strong demand growth continues in markets such as China and Southeast Asia.

Many readers would be less conscious of the Middle East as a destination for Australian dairy, however, it is a region worthy of attention.

Dairy Australia recently ran three seminars targeting the top Middle Eastern destinations for Australian dairy: the United Arab Emirates, Saudi Arabia, and Kuwait. These seminars told the Australian dairy story to current and potential customers and enabled us to better understand the markets themselves.

Exports to the region grew 58% to almost 1.6 million tonnes in the five years to 2012, before easing 7% last year amidst soaring prices and unprecedented dairy demand, from China in particular. Of this, 70,000 tonnes came from Australia (9% of our export volume), making the Middle East our second-largest regional market, worth nearly A$300 million in 2013.

As shown in the chart, we are a relatively small exporter by market share.

The largest share is held by the European Union; New Zealand is a significant supplier; and dairy products produced (or further processed for reexport) within the Middle East have also grown in recent years.

Each of the three Middle East countries visited has its unique attributes, and common themes. The most immediately striking to an Australian observer is the sheer volume of product on display at retail.

The large hypermarkets in major cities devote several times more shelf space to dairy than retailers in Australia. Popular products commonly had 25-30 packs facing the consumer, stocked several units deep.

Pack sizes also tend to be much larger --2kg yogurt tubs were a common sight – reflecting larger households with more children and several domestic staff.

With a relatively affluent population and a deep history of dairy consumption, an enormous variety of local and international brands are available.

Bega, Bulla and Lemnos products comprised Australia’s branded presence in many outlets, in addition to Australian-made Kraft and Pauls lines.

Perhaps unexpectedly, given their overall market share, most imported retail brands and fresh deli products were European, reflecting deep historical ties, geographic proximity and clever marketing.

Compared with many Asian markets, products imported from outside the region don’t appear to carry the same premium over local brands: the quality and safety of local products tends to be regarded highly.

Middle Eastern ingredient customers tend to be price sensitive: despite the relative wealth of the population, price controls for staple products in many of these markets restrict returns for manufacturers, leading to aggressive cost management.

In the short term this can manifest itself in chopping and changing suppliers based on price (even at the risk of compromising quality), with some manufacturers maintaining sets of recipes to allow rapid product reformulation with ingredients of different specifications.

In the longer term, costs are sometimes reduced by removing dairy from products altogether – replacing it with a cocktail of vegetable-based alternatives to mimic the characteristics of butter or milk powders. This presents a difficulty for Australia in doing large-volume business with Middle Eastern customers, since Australian suppliers tend to compete on attributes other than price.

While the quality and safety of Australian products is highly regarded, in these markets cheaper suppliers with accept-

able standards are often selected.

Higher-value opportunities that better suit the positioning of the Australian industry are emerging in the provision of functional products with added health or cosmetic benefits. The Middle East is unlikely to ever surpass

Asia as a volume destination for Australian dairy exports, and Australia is equally unlikely to establish a dominant presence as a mass market supplier.

Apart from the benefits of diversifying our market exposure however, the opportunities associated with higher value, lower

volume products such as those with functional attributes are worthy of attention as our industry looks to position itself further up the value chain.

• John Droppert is a Dairy Australia industry analyst.

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12 // NEWS

Ambassador role for top wider farming industry has two new champions in this year’s national winners of the Ballance Farm Environment Awards – Mark and Devon Slee.

The couple’s business, Melrose Dairy, milks 2640 cows off three milking platforms totalling nearly 700ha at Ealing, Mid Canterbury. All bar 6ha is irrigated by centre pivot normally producing over 1800kgMS/ha/year off grass, fodder beet and about 400kg/cow of barley fed in shed.

“This year our production was a bit lower because we lost two irrigator corner arms [in the September gales] and it was a very challenging season,” notes Mark.

So many irrigators were damaged in those storms that the arms couldn’t be fixed until January and while the rest of the pivot was operational for the first half of the season, when the engineers and

electricians came in everything stopped.

“We probably lost a week of watering at a critical time with those pivots, on top of the corners which missed out all summer to then.”

Efficient irrigation is the key to productivity off the stony silt loam Lismore and Balmoral series soils, and to minimising the environmental footprint. It means they’re in control of pasture growth and nutrient uptake, with nitrogen fertiliser matched to pasture needs.

Consequently leaching losses due to drainage are minimised, with Aquaflex soil moisture sensors ensuring water is only applied when pasture needs it, with some space left to accommodate rain.

“We’ve been using Aquaflex for eight years.

We’re on our third generation of it now,” notes Mark.

They’ve been growing fodder beet for a similar

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time. “We get about 23t/ ha. We have to wait until we can afford to take the pasture out so we don’t get it in early enough to get the really high yields.”

This year they have about 80ha with cows going onto it in late lactation as well as for winter.

“We milked some cows off it for about six weeks before we dried off this

Mark and Devon Slee with their award.

year. It’s a really interesting feed. Basically it’s pure carbohydrate with very low protein, so there’s less nitrogen excreted. It could be another tool to

decrease our nitrogen loss by a significant amount.”

At present Overseer calculates their loss at 47kgN/ha/year, but Slee believes the model doesn’t

Fodder beet has been part of the Slees’ system for eight years.

allow for the improved quality of their soil with the organic matter built up after years of dairying, or the ever-improving efficiency of their irrigation and fertiliser use.

Both are now GPS tracked using AgHub providing proof of placement and reduced risk of mistakes in application.

Effluent is applied through irrigation pivots with GPS providing similar proof of placement.

“We can get the application rate down to 5mm per day because it’s going over the entire pivot area.”

Nutrient content is checked with tests about three times/year. “It varies very little,” notes Devon.

In their sheds they use Protrack to individually monitor, and, when necessary, draft out animals.

Mahana Blue heat recovery systems are fitted in two of the sheds, and all three have automated cup

The problem is . . . A high producing dairy cow is under massive metabolic stress.

removers so milking is a one man operation. Each shed and associated milking platform is run by a team of four, with each herd split into two mobs so one person milks while the other gets the other mob in and then milks that. The roster is 10.5 days on, 3.5 days off.

“As farmers we have to set the culture on our farm: to be positive, and proactive. It’s very much a team environment,” says Devon.

They do individual catch-ups with staff twice a year, support training, have a health and safety manual, and produce weekly farm performance reports and a monthly newsletter.

“The dairy industry needs to promote itself as a career for those who want to get ahead. As an employer you’ve got to be patient and take your time to find good staff.”

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DAIRY NEWS JULY 8, 2014

NEWS // 13

duo Mark’s a sheep and beef farmer’s son but Devon came from a non-farming background, meeting Mark at Lincoln University.

“People have to be interested in the land and animals to get on in dairying. It is a big shift for some families, having to travel 20km to town and not having a shop just round the corner.”

They’re strong supporters of community organisations, with their winnings from the regional BFEA distributed

to three local community groups. The national award is a travel scholarship which they’re thinking they’ll use to look at dairying in the US or Europe.

“I’d like to study the overseas systems to see the comparison of where we are at,” says Mark.

“We’ve got to be very careful in New Zealand because dairying is underpinning the economy at the moment.”

Devon echoes that.

“We’re pretty strong on low cost systems.”

SURPRISED TO BE SPREADING THE WORD ANNOUNCING THE Slees’ selection as winners of the national award, New Zealand Farm Environment Trust acting chair Simon Saunders said they will be great ambassadors for New Zealand agriculture.

“Mark and Devon possess the outstanding communication and leadership skills necessary to spread the sustainability

What drives them the extra mile?

rience with Mayfield Hinds Irrigation Company and Irrigation New Zealand will stand him in good stead.

“We’re just a pretty normal dairy operation. I think it’s a relevant story we’ve got to tell to whoever we’re speaking to – groups, farmers, members of the public, government organisations.”

He admitted “it was quite a shock really” to have landed

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ment Awards involved farm visits by two judges, Jamie Strang and Warwick Catto (Ballance Agrinutrients), followed by a panel interview prior to the awards night.

“We want to find out what drives them to go the extra mile with sustainability in their businesses and understand where they’re coming from on issues such as water quality, perception of New Zealand farming, and urban-rural relations,” acting chair of the NZ Farm Environment Awards Trust Simon Saunders told Dairy News.

“We are looking for that next step in them having an ability to talk about New Zealand agriculture and the wider issues and how they are being solved not just in their businesses but the whole industry.”

Strang is a retired Wairarapa farmer with a long involvement in the awards. Catto is Ballance’s R&D manager. Besides Strang and Catto, the panel interviews were conducted by Simon Saunders Saunders, who’s a Southland sheep and beef farmer; dairy woman of the year and 2013 Northland Supreme award winner Charmaine O’Shea; Rabobank Waikato region manager Paul Lamont; and Federated Farmers president Bruce Wills.

Wills says the Slees will make outstanding ambassadors for New Zealand agriculture.

“This type of operation has been at the forefront of the debate on the effects of dairying on the environment….

The Slees have shown great initiative and dedication when it comes to reducing their environmental footprint, and they are excellent role models for other farmers to follow.”

Saunders says their panel interview proved they have a very good understanding of the challenges and opportunities facing New Zealand agriculture.

“They are a highly motivated and skilled couple, yet very down-to-earth and humble. They absolutely deserved to win this competition and they will make excellent ambassadors for the dairy industry and for New Zealand agriculture in general.”

The judging panel was “blown away” by the calibre of all the regional winners, he adds.

Besides the Slees, contenders for the 2014 Gordon Stephenson Trophy were: Roger and Jane Hutchings, Northland; Rick Burke and Jan Loney, Bay of Plenty; Mike and Sharon Barton, Waikato; Rob and Sandra Faulkner and Bruce and Jo Graham, East Coast; Gavin and Oliver Faull and Tony and Loie Penwarden, Taranaki; Justin and Mary Vennell, Horizons; Matt and Lynley Wyeth, Greater Wellington; Wayne McIntosh, Otago; and Andrew and Heather Tripp, Southland.

message to national and international audiences.”

Saunders said all ten regional supreme winners demonstrated a huge passion and commitment, not just for their farm businesses but for New Zealand agriculture as a whole.

The Slees told Dairy News the ambassador role “is quite a big responsibility” but Mark believes his directorship expe-

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the national title.

“All the supreme winners were top calibre farmers and it was hard to tell who was going to be the national winner.

We’re surprised to have won it, thought it’s not really a competition…. This trophy is about being an ambassador for the next 12 months. Looking for a couple that can portray what agriculture’s all about, and tell their story.”

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DAIRY NEWS JULY 8, 2014

NEWS // 15

Beware of the US juggernaut market in the world, keeping demand growing and US consumers chewing through more and more burgers, pizzas and other takeaway ‘delicacies’.

THE ONGOING evolution of the US The farm sector of the US dairy dairy industry holds plenty of interest. industry has fiercely held onto regulaIt exceeded 92 billion L in annual milk tion of their farmgate prices, but these output for the first time at the end of are set by reference to prices in the June. wholesale trade. Despite the vicious About the turn of the century I used cycles in prices due to the working of to joke about an export marketing manthat mechanism, the US industry has ager I’d met from one of the biggest US grown steadily over the dairy companies who didn’t past decade. seem to have a working knowl- “We’d better hope US consumers One of the big wonedge of an atlas. The US induseat more cheese and that China ders of the dairy trade try in those days had a paltry 4% landscape is that the US of the global trade in dairy prod- continues to increase its import ucts, relied to some extent on orders, or else there will be a lot of industry hasn’t grown faster in recent times. export subsidies and the US gov- milk looking for a home.”

The big margins might ernment bought any surpluses be available but other facof low specification milk powother low-grade uses in Asian markets. tors have held the handbrake on output. ders and butter.

About 25% of all US milk is used to Many dairy farmers have been repairing That is a far cry from where the US industry is looking into the future and produce liquid milk products, whose their balance sheets from the effects of placing its bets these days. In 2013 that consumption is in decline and, despite post-GFC volatility and the slim marshare of trade had (according to the US renewed industry efforts to reinvigorate gins through much of 2012 and 2013. exporters council) expanded to 17%, marketing of milk, shows little sign of Feed quality has also suffered – especially since the deep drought affectwith about 15% of all US milk output flattening and returning to growth.

At least 75% of the remainder of US ing the south-west regions for the past being processed into milk powders, milk is processed into cheese. The US few years, which still exists for many, cheese and butter that was exported.

Much investment has gone into food service sector is the biggest cheese although prices for corn and soy have STEVE SPENCER

large-scale milk powder plants and there is a move to improve the quality of products.

The US is now the biggest exporter of skim milk powder (SMP) although a large portion of this is in the lower-quality form referred to as ‘non-fat dried milk’. An incremental earner for the US is whey powder – a by-product of its massive cheese industry – a meaningful contributor from sales into feed and

fallen sharply on the strength of much higher supply in 2014. With lower quality feed, milk output per cow has been weaker.

Any effect on milk output will therefore be lagged. At the end of May 2014 US total milk output was growing at the rate of 1.4% over the same month last year, but for the year to date had expanded just 1.1%. The forecasters at the US Department of Agriculture reckon the US industry will pick up speed, so that over the full 2014 year it will add 2.4%. That would mean the US will pump out 3.3% more milk for the rest of the year to hit that target.

For the seven months to the end of 2014, that growth would equate to about 1.9 billion L of milk. Here comes the crunch: we reckon just about all of that expansion will either head for the world market or the coldstore, as US domestic consumption of dairy is – at the very best – flat-lining.

While New Zealand might be growing quickly at present and is expected to continue expansion in 2014-15, even if NZ expands at 5% in the same sevenmonth period (faster than the expectations the chief executive of Fonterra

Steve Spencer

has made public), the additional milk it would produce would amount to only one-third of that extra US output.

We’d better hope US consumers eat more cheese and that China continues to increase its import orders, or else there will be a lot of milk looking for a home.

• Steve Spencer is a director of Freshagenda, a Melbourne consulting and analysis firm.

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and an even better understanding of agri business in the Waikato. Patrick is part of ANZ’s dedicated Agri Business Team of 34 industry specialists providing expert local service to the region. To find your local ANZ Agri Specialist, visit anz.co.nz/rural or call Patrick himself on 07 837 8623.

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16 // NEWS

Professor goes to new heights PETER BURKE peterb@ruralnews.co.nz

LINCOLN UNIVERSITY’S professor of farm

management and agribusiness, Keith Woodford, has recently been visiting people in high places in other countries.

In Colombia, as part of an ‘agricultural diplomacy’ initiative by the New Zealand government, he’s been looking at how our science and technology can help improve the lot of local dairy farmers.

The place Woodford has been is 3000m above sea level near the Colom-

bian border with Ecuador. He says Colombia has 300,000 dairy farmers, but their holdings are very small and production is low.

“The New Zealand government is running an aid programme to see if it’s possible to apply Kiwi know-how to improve the

Colombian dairy industry.

“I’ve taken some photos, and when I show them to people from the Waikato they say ‘gosh that could be from the Waikato’ or if the person comes from Taranaki they’ll say ‘gee this is a bit like Taranaki’. It’s wonderful country up there

but there are some quite big challenges. Interestingly their government is very keen on the way we do industry development and extension and what I call our ‘farmer-centric approach’.

“What that means is that we put farmers and businesses in the centre

of the whole innovation system here in New Zealand.

They think that is quite interesting and of value to them,” he says.

Woodford says some of the solutions for Colombia may see some New Zealand technology used but not in all cases. He

says some of the grasses may suit the conditions and our fertiliser management may also have a role to play.

Woodford says the people in the region are very poor and any increase in milk production will be consumed on the local market.

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A Colombian dairy farm 3100m on the equator. PHOTO: KEITH WOODFORD.

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ANOTHER HIGH place Woodford has been visiting recently is China.

He’s had a lifelong interest in the country and has been travelling there since 1973. He says his goal has been to learn more about China and understand the reality of things there.

“Recently one of my projects has been up on what’s called the Quinghai on the Tibetan Plateau.

“This is way up at above 3000m above sea level and the town we stayed at was almost as high as Mt Cook.

“There is some really profound dry land agricultural issues over there and we are finding that we have a lot in common with some of the Chinese scientists. We may even be able to learn some things from them in relation to our alpine grassland in New Zealand,” he says.

Woodford says while Quinghai is part of China, most of the people up there are Tibetan, so it’s Tibetan

language, culture and religion.

He says the Chinese government is putting vast resources into the province.

But Woodford says the cold winters make finding suitable agricultural solutions challenging. For example he says finding a legume that will grow there in winter is one of these.

“The legumes that we will use there will probably be ones we don’t currently use in New Zealand.

Probably what we give is the way of thinking that goes back to the fold Lincoln ‘whole-farm system’ approach.

The Chinese scientists tend to be very specialised in particular areas, and what we bring is a much broader perspective and that’s the notion that they are pretty keen on and trying to understand. So it’s about soils, plants animals, people and it’s about all those things coming together,” he says.

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DAIRY NEWS JULY 8, 2014

18 // NEWS Geoff and Bev Laurent

Kiwi making life SUDESH KISSUN sudeshk@ruralnews.co.nz

EVER WONDERED

who first built a farm dairy effluent pond in New Zealand? Or who first sprayed teats or measured pasture?

Enter Geoff and Bev Laurent, owners of Shoof

International, a company selling to the world’s farmers all sorts of innovations – some the Shoofs’ own inventions, and some those of other farmers or local inventors.

Attendees at last month’s Small Herd and Supply Herds (SMASH) conference in the North Island heard from the Lau-

rents, about their journey from being small innovators on their family farm in Cambridge to the global market.

It began in 1968 when, after driving bulldozers in Australia for a couple of years, Geoff responded to a call from his father; he came home and joined the 50ha family farm as a 39% sharemilker, soon moving to 50/50 sharemilking, then marrying Bev, a nurse, in 1969.

But milking twice daily year-round did not satisfy Geoff and he began looking at everything he did on the farm to see what easier or better ways there might be.

“Rather than being focused on the cows and the milk, as I should have been, I started looking at everything I did and trying to ‘improve’ on it all,” he says.

“What I was doing also seemed to attract the attention of farm discussion groups, farm advisors and the farming press of the day. There were always visitors to the farm, looking at what was going on there.”

His first ‘invention’ was a reversible tractor-

mounted scoop for cleaning feeding platforms.

This won an award at the second field days at the Hamilton racecourse.

At the next field days he added a new device that dosed iodophor into udder wash water for the purpose of treating mastitis.

He won another award.

Then he and Bev made a big decision, “to use $400 we had set aside for a new lounge suite to start a company, Topmilk Developments, to produce and market this device, which we called the ‘Trickler’.”

Thus began their journey into the ‘real’ world of business, “something neither of us knew anything about. Bev was a nurse, so at least we had one reliable and secure income in the family. I continued sharemilking, buying the farm a few years later”.

The next four years were frenetic for Geoff, as he worked on more inventions. He remembers feeding calves on the farm with “an inflation on a beer bottle and thinking this was a nuisance”.

He invented a multi-speed calf feeding bottle, later famous as the Speedy Feeder.

INNOVATION INHERITED FROM HIS DAD GEOFF LAURENT’S father, Vern was an innovator in his day.

With Cambridge engineers Ken Rossitor and Ron Woodward he developed a buckrake, using a photo from an English farming journal as a guide. This became the widely known and used Rosswood buckrake.

Geoff says in 1957, when he was about 12, a field day was held on their farm and several thousand farmers turned up “to see this amazing new device”.

“Dad turned to town milk in the early 1950s, delivering his milk in Cambridge at 4am, then getting back to the farm for morning milking.

“It was a long day, but more profitable than just normal seasonal dairying. He worked hard and made many innovations for the time. The farm, though quite small at 50ha, became known as modern and productive, and was the venue for much examination and discussion.”

The first effluent pond on the Laurents’ farm, Cambridge

DAIRY NEWS JULY 8, 2014

NEWS // 19

easy for farmers

Give me the best start

Multi-speed calf feeding bottle – one of Geoff’s many inventions.

As an intensive farm milking all year around, cowshed effluent disposal was a problem.

The pumping system was always giving trouble, so Geoff went to the Hamilton Meat Research Institute who helped him design some effluent ponds.

After getting special permission from the council Geoff built these firstever dairy-farm ponds.

Sore feet was also prevalent in the herd; Geoff thought of a shoe for cows’ feet. “Initially I put a bandage around the things and sent them off - and

before they got to the end of the race the bandage was trailing in the dirt.”

He knew there was a better way.

In 1979 the couple exhibited their products at the Royal Show in England; to their surprise show visitors took close interest in their devices.

A Dutch company bought a full container of Quartermilkers, an improved quarter-milking bucket.

Topmilk Developments Ltd was now officially an exporter. Exhibits in France and other countries followed and busi-

ness grew.

Geoff noticed sore feet were as big a problem for herds in Europe as in New Zealand. So, he set about making the ‘cow shoe’ idea from years earlier.

The shoe-for-a-hoof was born and former Hamilton mayor Russ Rimmington suggested the name Shoof; the company’s name was changed to Shoof International.

In 1992 sales broke $1 million, Geoff put a sharemilker on the farm and Bev gave up nursing for a full-time role in the company.

Thanks to Rogernomics

and economic reforms the company began importing and selling veterinary equipment New Zealand vets and farmers had been starved of during the protectionist Muldoon years.

In 2004 sales broke $20 million and Shoof International further spread its wings, buying out competitors in Australia and opened a branch in Osorno, Chile.

Today Shoof turns over $25 million, and employs 90 staff in four countries.

“We have learned huge amounts, and still remain focused on growth,” Geoff says.

Leading the way in innovation ❱❱ ❱❱ ❱❱ ❱❱

First ‘group-feeding’ of calves.

Development of ‘dry washing’ of udders.

‘Reversible scoop’ invention winner.

Udder-wash-water sanitiser invention (Trickler). ❱❱ Conception and initial development of a shoe for cows (to become the Shoof). ❱❱ Conception and prototyping of a multi-speed calf feeding bottle (to Shoof on a hoof become Speedy Feeder). ❱❱ Development of ‘pasture budgeting’ – a system eventually accepted worldwide. ❱❱ Invention and development of the first dairy-effluent ponds in New Zealand. ❱❱ Development of teat spraying (using a garden sprayer) – eventually to become accepted practice worldwide. ❱❱ Development of dispensing systems for reverse-flow washing of milking machines (Rev-Wash). ❱❱ Development and commercial introduction of the first computerised herd recording system especially for town supply farmers – ‘Comtest’. ❱❱ Development of an inline end-of-milking indicator, the Sight Glass. ❱❱ Development of an improved quarter-milking bucket Quartermilker. ❱❱ Development of a better hoof-working leg rope Vet-Rope – now used internationally.

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DAIRY NEWS JULY 8, 2014

NEWS // 21

Open slather for Thriving dairy drives processing ‘not a land trends recipe for success’ PAM TIPA pamelat@ruralnews.co.nz

FOREIGN INVESTMENT in the New Zealand dairy industry is “a concern” but some offshore investors may be confusing processing with farms or milk supply, says Phil Turner, director business transformation, Fonterra.

Open slather for processing options is not a recipe for success, as the meat industry illustrates, he says. But Fonterra is determined to retain and build its share of the New Zealand milk pool in the face of increasing competition.

“The Government seems very enthusiastic to attract foreign investment into dairy for reasons I do not understand,” Turner said in answer to questions at a major horticultural conference in Auckland where he spoke on the success of the dairy industry.

“It is such a successful part of the New Zealand economy, wouldn’t you want New Zealanders to be on the whole getting at least a fair share of the action?”

But offshore dairy investors may be confusing investing in milk processing in New Zealand with investing in farms or milk supply, says Turner. Fonterra’s strength as a cooperative is in maintaining control over the production and man-

ufacturing of milk, he says.

It will be interesting to see how the foreign investors in processing plants fare, Turner says. “We’ve already got quite active price competition for milk in New Zealand today: that’s intense in parts of the country, not everywhere. It’s probably going to get more intense.

“But Fonterra is committed to maintaining if not rebuilding its share of milk in New Zealand. We will put up a good fight to retain what we’ve got in that competitive environment.”

Fonterra was well above 90% and has now dropped to the high 80% in its share of New Zealand milk. “We will be committed to getting that up again by delivering great service to the farmers and competitive prices, which we think on the whole we do.

“We’ve got a share structure which some people see as an obstacle …. Some of our competitors don’t have a share structure so you can switch more easily.

“But I think there’s high risk for producers in an environment where you’ve got open slather among your processing options.

“Think about the meat industry – it looks great, you can decide where to send your cows from one day to the next.

“But I don’t think it’s been a recipe for success for the industry.”

Dick and Mary Earle cut a cake to celebrate 50 years of food technology at Massey.

NEW TRENDS are emerging in the rural real estate market as the dairy industry continues to grow and quality properties continue to fetch top dollars.

That’s the message from Brian Peacocke from Pastoral Reality and a rural sector spokesman for the Real Estate Institute.

He sees consistent demand and similar prices for dairy farms in Waikato and Canterbury, and consistent demand but at slightly lower prices in the central North Island and around Rotorua. Farms in Southland are in the same price bracket.

One strong trend is that some dairy farms in Canterbury are being put on the market without the Fonterra shares by Fonterra suppliers.

“It’s a mix of everything,” Peacocke says. “Quite often we are seeing scenarios where the Fonterra shares are available over and above the land price to the purchaser and offered at face value.

“We are hearing a requirement from some owners that they retain

Demand for dairy farms in Waikato and Canterbury remains high.

their link into the dairy industry and retain the Fonterra shares. But the condition with the shares means that if they are not continuing as dairy farmers they can’t hold onto to those shares for longer than three years but they can convert them into shareholder units.

“So in many cases they are keen to retain that investment link with the industry they have been involved in.”

Peacocke says people who buy the dairy farms without the Fonterra shares have up to, and in some cases beyond, six years before they have to become full shareholders, but he

says in the end if they wish to be a Fonterra supplier, their shareholding has to match their production.

Peacocke says he also sees demand for quality sheep and beef finishing farms especially in Otago, Southland and North Canterbury.

These are being bought for dairy support, either for grazing heifers or growing crops.

“The spin-off from that is we are seeing demand bouncing back in some more traditional areas for sheep and beef, eg Hawkes Bay and northern Wairarapa, Peacocke says.

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The Earles joined the food technology faculty at Massey in 1965, Dick as professor of biotechnology and Mary as a senior lecturer in food technology.

They pursued a lifetime commitment to their profession, including working with students from Thailand.

In 1980 Dick was appointed dean of the technology faculty.

When Sir Pat Goodman, of Goodman Feilder fame, received an honorary doctorate in 2000 he said the success of his company owed much to the work of professor Mary Earle.

Both have written many scientific papers and books and even during their retirement both have continued to publish – most recently online.

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DAIRY NEWS JULY 8, 2014

22 // WORLD

Plan to boost cow numbers Stuart Crosthwaite says there is a need to change the way people think about dairy.

A NEW plan is calling for 20,000 extra cows in the Alpine Valleys region of northern Victoria in the next decade and for those cows to substantially increase the region’s output.

But one of the driving forces behind the plan says it will only succeed if

there is community-wide cultural change, improved transition schemes and support to ‘fire up’ interest among young people.

The Regional Growth Plan for the Dairy Industry in North East Victoria aims to lift annual milk production in the region from 220 megalitres to

400 megalitres by 2025.

It calls for cow numbers to increase from 40,000 to 60,000, stocking rates to lift to 1.5 milking cows per hectare, per cow productive performance to go from 420kgMS to 535kgMS and for farmers to target 3.54.0 tonnes of home grown fodder per year.

And it will seek an extra 25% of high quality land and targets a 7% return on assets.

It is anticipated by 2025 the region will generate $A160 million of farmgate returns and support 550600 fulltime jobs.

The report says the ambitious predictions are based on the region’s natural biophysical advantages, demonstrated improvements in farming technologies and a strong outlook for the global dairy market ensuring a stable and favourable farmgate price for milk.

However, it points out that 60% of farm owners and managers in the region are aged over 50.

The plan has been supported by the Alpine Valley Dairy Pathways Project steering committee. Its chairperson Stuart Crosthwaite says to reach the goals “we’ve got to change the culture of the community”.

“We need a long-term persistent effort to change the way people think about dairy,” Crosthwaite says. “We’ve got to bring the community along for the ride.

“We did a comparative business analysis of beef and sheep versus dairy and if you’re in the top 30-40% of dairy you can be four or five times more profitable than any beef operation.

We know the business case is strong but why aren’t people taking up that opportunity?”

Crosthwaite says it is important to work on transitions with farmers help them retire and keep land in dairy.

“If we’re going to double milk production in the next 12 years we need that high quality land currently in dairy to stay in dairy.

“We know the northeast has the oldest demographic of farmers in Victoria. We’ve got 200 farms and we reckon

30-35% of those farmers will go out in the next five years. They have no obvious successor or young generation coming through. If they go out we’ve got no hope of increasing milk production.”

The plan recommends professional one-on-one help for businesses to continue in dairy, schemes to help reduce farm operating costs and providing networks and options for the next generation of potential farmers.

“We’ve got to plant the seeds and get people to think about dairy in a positive light. We need to be firing up young people to be ready to take on an opportunity when it presents itself,” Crosthwaite says.

He said there were some beef operations in the region considering conversions to dairy.

The report says there is an increasing dependence on non-family labour and it includes a workforce strategy to ensure the right people are in place to sustain industry growth.

The region’s dairy farm numbers have dropped markedly during the past decade but those remaining have grown in size and output, resulting in only marginal volume loss. The overall trend is for intensification of dairy farms with more cows and production per hectare.

The report says dairy competes strongly with other agricultural uses and should be able to access high quality land when it becomes available. However, it warns that there may be demand from competing uses such as residential.

Kiewa Valley farmer Pat Glass says the fundamental strategies in the plan were good. “It will be interesting to see where it goes over the next five years.”

However, Glass says he had concern about the cost of land.

“I can see milk production increasing in the Alpine Valley because those who own the land will choose to entrust custodianship to those who can make a lot more money out of it by milking cows rather than grazing cattle.”

DAIRY NEWS JULY 8, 2014

WORLD // 23

Australians are drinking more milk and processors are finding it hard to keep up with demand.

Exports to suffer as fresh milk sales rise RICK BAYNE

AUSTRALIA’S DRINKING milk

states are struggling to keep up with increased consumer demand for milk.

The gap between local production and domestic fresh milk sales is growing – particularly in Queensland -- raising concerns about the level of inter-state milk transfer and the potential impact on export availability.

Most milk produced in Victoria, Tasmania and southern NSW is turned into exports. However, milk produced in South Australia, Western Australia, northern NSW and Queensland is mostly consumed locally.

While deregulation means the shortfalls are theoretical as there is no restriction on moving milk over state borders, state organisations are touting locally produced milk as the freshest and cheapest option.

They also say the industry needs

clear signals from the market and increased base prices to give farmers confidence to increase production.

Despite good seasons, restricted cow numbers – partly caused by exporting heifers -- are limiting the industry’s ability to respond quickly to increased demand for milk.

National production volumes have stabilised but are still 10% lower than a decade ago.

On the other hand, fresh milk sales are continuing on a steady incline fuelled by population growth and a small increase in consumption.

Some supply contracts are now stipulating that drinking milk must be produced in the state of consumption, which is having a flow-on effect for sourcing enough supplies for exports and other dairy products.

Queenslanders are now drinking nearly 100 million L more each year than the state’s cows are producing.

South Australia has been unable to meet its usual quota for locally produced milk for inter-state sales and

in Western Australia production fell below sales for two months earlier this year with predictions that will happen again in 2015.

WA Farmers Federation dairy president Phil Depiazzi says Lion has been importing milk from other states for its Woolworths contracts but the new contractor, Brownes, would be sourcing solely Western Australian supplies for its fresh milk deliveries.

“That will tighten supply even more,” he says.

The state produced 22million L of milk in February but sales were nearly 27 million, meaning milk from interstate was needed.

March sales were about a million ahead of production. “They were two fairly critical months and that is likely to be critical again next year, especially if we’re not getting that milk in from Lion,” Depiazzi says.

“Farmers are slightly more positive so that should mean a touch more milk,” he says. “We’ve had a pretty good season.”

cessors, Parmalat and Lion.

“Farmers have not only been hit hard by the depressed farm gate prices but also with significantly increased costs of production such as those associated with electricity and feed grain.

“Natural disasters including several major floods and cyclones, followed by an exceptionally dry summer in 2013-14, have also put farm margins under strain. These have all contributed to the number of farm exits we have seen in recent years.”

Tessmann is adamant that Queenslanders should be drinking Queenslandmade milk.

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QUEENSLAND 20% SHORT IN SUPPLY QUEENSLAND IS about 20% short of meeting its own drinking milk requirements, according to Queensland Dairyfarmers Organisation president Brian Tessmann.

“Unfortunately, the industry has lost significant capacity in the last three years, especially since the supermarket milk price war began,” Tessmann says.

“The industry wants to expand if it is profitable to do so – but the market isn’t giving us that signal at the moment.”

He says there is “no doubt” that A$1/L milk had badly affected the Queensland farm gate price paid by the two major pro-

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DAIRY NEWS JULY 8, 2014

24 // OPINION RUMINATING

EDITORIAL

Willy’s way

MILKING IT...

Flying Dutchman

FONTERRA CHIEF executive Theo Spierings’ took several questions from the floor at last month’s South Island Dairy Event in Invercargill, but then exited swiftly stage left leaving no opportunity for one-to-ones with attendees, or the news media. Apparently, he had a plane to catch. Milking It wonders which plane he was on, given the next scheduled departure from Invercargill was 4.05pm and he left at 2.30pm with a journey of 15 minutes to the airport.

Of course, a charter may well have been waiting, but it’s not the first time the ‘flying Dutchman’ has made a sharp exit from a conference leaving disappointed those who prefer to put their points discreetly.

What a kill

A FORMER farming leader told Milking It: Recently our vets ran a calf rearing seminar for the ‘girls’ who rear calves – it’s a girlsonly affair. One of the girls from one of our farms attended.

The vets were well organised and had a calf on hand to demonstrate the captive-bolt killing method. When invited, one of the women volunteered to do the job. The crowd broke into squeels as the trigger was pulled, the bolt did its deadly work and the calf’s head exploded, showering brain tissue over the unsuspecting woman and those near her.

Little films of this ‘animal friendly procedure’ could go viral on YouTube.... thanks to the Minister, MPI and NAWAC. Said our informant, “I did submit to NAWAC on the code changes and urged all its members to observe the various ways of euthanasing calves prior to their deliberations and final decision. They did not follow my advice or accept my offer to demonstrate the methods. My idea was to adopt a method of killing that would look better if seen by the public.”

Milk but no cows

IMAGINE A world where milk is artificially produced, and free of lactose and cholesterol.

That’s the dream of three US bio-engineers seeking to produce a proof-of-concept of their cow-free milk. The trio, founders of the biotech start-up Muufri, expect to make next year the first batch of their potentially revolutionary beverage.

They envisage a beverage drinkable by the 75% of the world’s population who are lactose-intolerant and want to reduce dependence on animals. Their milk components made in yeast culture would yield for consumers and food manufacturers the products they know and love, but via a more sustainable, healthy and humane process.

On leave, not planning gardening

JOB CUTS at Lincoln University are causing concerns among the agriscience fraternity. But, of course, not all are on that radar.

An email to a prominent academic there drew the reply, “I am on longplanned annual leave until 21 July. Despite some rumours, I will return.”

Let’s hope that’s true.

WILLY LEFERINK last week ended his three year term as Federated Farmers Dairy section chairman and is now back on the farm preparing for calving – or will it be a trip overseas?

He took over the role at time when the heat was on the nation’s dairy farmers, still suffering from Fish & Game’s ‘dirty dairying’ campaign. At the same time regional councils started to flex their muscles on environmental issues and dairy farming leaders including Leferink spent lots of time urging logic and common sense in the creation of new environmental rules.

Social media took to highlighting perceived breaches of environmental standards and, to be fair, some farmers didn’t help the cause by flagrantly disregarding environmental standards.

There was the TAF debate and volatility in world dairy markets.

Then the concept of ‘food safety’ gained fresh urgency for the dairy industry when Fonterra botched the handling of a botulism scare.

This was the world Leferink had to lead his colleagues through and few would dispute that he did a brilliant job. Like his president, Bruce Wills, Leferink worked hard to establish the credibility of Federated Farmers with a range of stakeholders – some of whom were seen as arch enemies.

Leferink tiptoed through the difficult times, remaining loyal to his dairy farmer constituents but building bridges and establishing good relationships with environmental and community groups.

He was never afraid to speak his mind one way or the other and his wicked sense of humour enabled him to get away with saying things others might have left unsaid. Leferink was as astute and successful in farming politics as he was in own business. His solution-focused approach was a winner.

In three years Leferink has helped build a new and revitalised Federated Farmers organisation respected in government and environmentalist circles and in the wider public arena. He leaves the organisation in better shape than when he arrived and is now poised for new challenges.

Yes, in some ways he was a little unconventional, but regardless of that Willy’s ways have done the trick. A job well done Mr Leferink.

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DAIRY NEWS JULY 8, 2014

OPINION // 25

Signing off with gratitude and “Willyisms’ Outgoing Federated Farmers Dairy chairman Willy Leferink spoke at last week’s annual conference in Palmerston North.

Here’s part of what he said:

farm portfolio overseas.

New Zealand’s future lies in taking our knowhow, experience and systems into the big wide world.

Fonterra is to be congratulated for being in the picture.

Yet I somehow feel uncomfortable that these operations have the same Fonterra master brand on them as our farmers. Simply put, I am fearful that my reputation or that of Kiwi farmers may be held hostage to what a farm worker overseas may or may not be doing. We need to have this discussion.

I would like to thank once more my predecessor Lachlan Mackenzie for leaving me the space in which to operate; also former national president Don Nicolson for some wise advice when I started.

As both have ambitions

FEDERATED FARMERS has vastly helped

improve TAF (trading among farmers) and we have started to reinvigorate sharemilking. While we have a way to go to better promote this great farming pathway, the update of sharemilking agreements and the youth and vigour of that section are extremely uplifting.

We even navigated our version of Edward Snowdon when ‘someone’ forwarded internal emails to the media. I didn’t coin it, but ‘WillyLeaks’ sort-of stuck.

Throughout it all we have strengthened industry relationships with DairyNZ, Fonterra, Westland, Tatua, Synlait, Miraka, Open Country and the new entrants.

Speaking of Fonterra, I wish also to discuss Fonterra’s growing

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to be in Parliament I wish them well in the coming election.

Then there is the boss Bruce Wills who richly deserved that Landcorp Communicator of the Year Award. I also wish to say thank you to Conor English who helped us in select committees and the political dark arts of Wellington.

Lastly, I thank my wife Jeanet who manned the fort back home in my absence and packed my bags on many occasions.

Without her I would not have been able to this job.

Now this isn’t a Willy speech without some Willyisms.

First, the Dutch will win the World Cup. If not in Brazil the one after that. Secondly, an activist, somewhere will blame the end of western civilisation on dairying. Thirdly,

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that Cain did not kill Abel out of jealous rage.

No, it was because Abel proposed to convert from sheep to dairying.

And finally, that the Black Death actually came into Europe on imported cattle feed.

Others, no doubt, believe there was a cow on the grassy knoll in Dallas on that fateful day when JFK drove by. Oh and the moon landings were faked by the International Dairy Federation because the moon is made out of cheese. The discovery of which would crash Global Dairy Trade.

I am staggered by how we are sometimes por-

Willy Leferink has stepped down as Feds Dairy chairman.

trayed. If you read only social media or judged us on how we are sometimes portrayed in the mainstream media, you’d think the public and Susan Wood hate farmers. Guess what? They don’t.

While Readers Digest’s annual ‘Most Trusted’ may have its

share of critics, it has also been going for years. It has consistently placed ‘farmer’ within its top-20 ‘most trusted’ professions and this year we’re 14th-equal with dentists.

The next time any farmer feels like having a lash against supposedly unsympathetic public, stop. Are you reacting to what the public genuinely thinks or is it a blogger or a journalist?

If you look at the bottom ten professions they are made up of bosses, politicians and the people who sell stuff. It includes the media too.

My message to the

media is that for every bad-news farming story that gets reported, there must be five great stories going unreported.

If the media wish to break that trend I can recommend Mark and Devon Slee, who won the supreme 2014 Ballance Farm Environment Award, the Gordon Stephenson Trophy. The Slee’s are farming first among equals as the best of the rest isn’t far behind.

Getting that out will turn our farming reality into public perception and on that note I leave you in very good heart. Thank you for having allowed me to be your servant.

DAIRY NEWS JULY 8, 2014

26 // AGRIBUSINESS

Super-bred cows will change the game PETER BURKE peterb@ruralnews.co.nz

A WORLD-LEADING dairy researcher says

major changes in the way cows are bred will pave the way for the development of new dairy products.

Dr John Lucey is the

director of the Wisconsin Centre for Dairy Research and a professor of food science at Wisconsin University.

Lucey, raised on an Irish dairy farm, spoke at a recent symposium marking 50 years of teaching food technology at Massey University. He once taught

food science there.

He told Dairy News that genetic technology will enable scientists to breed for specific traits in dairy cows, rather than wait to see what traits sons and daughters of cows produce and how beneficial these are.

“Rather than just breed

SOCIAL MEDIA PITFALLS stories [on social media]… are taken at face value by the public…. So food researchers and university people must speak out and get the correct messages across.”

Lucey says worldwide not enough money is being spent on dairy research. With dairy being so diverse biologically it can provide lots of excellent quality products and great health benefits and there is a need to capitalise on that.

Dr John Lucey says cow could soon be bred for individual proteins, rather than just milk or fat.

mals worldwide have been identified as having these traits.

Now the technology needs to be commercialised.

Lucey says after a roller coaster ride dairy products are again in favour with consumers, many so-called health concerns having been rebuffed. Now many consumers appreciate the value of high quality dairy protein.

“For example in the US a huge phenomenon for the last five years has been Greek yogurt… with about twice the protein of regular yogurt. It was kind-of chugging along in the US, but it’s had phenomenal growth because people are appreciating the high protein content.”

Taste, flavour and texture are the important drivers for getting consumers to buy a product,

Lucey says. “They are the givens but [they are also] looking for something healthy and convenient and they don’t want it to cost a lot.”

With the market for dairy products opening up in Asia, food scientists must attend to the needs of these new consumers.

Though interested in dairy products, they have different taste preferences to New Zealand consumers.

MOH0966/DN/D

SOCIAL MEDIA may be great in many respects, but it poses new challenges for many industries, including dairy, John Lucey says.

Instantaneous sending of information to consumers has a downside – the stories can be just plain wrong.

“Most writers in the media have very little science training; few actual science writers are [about nowadays]. So some inaccurate

for an amount of milk or an amount of fat or protein, you start breeding for individual proteins. You might say a lot of a particular protein has health benefits but it is produced in low amounts, but there is a cow or bull that has this trait and has the ability produce it and pass it on.

“That kind of focus would enable us to target that individual protein or component. In the next ten next years we’ll probably see more of that drive whereby people will breed animals for what I would call non-traditional traits.”

Lucey says this idea is not unrealistic as from a genetic perspective the markers are already there and have been researched and developed, and ani-

Feeling down in response to difficult situations is pretty normal. But when life has no joy or pleasure for more than two weeks, this could be a sign of depression. You’re not alone.

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DEPRESSION There is a way through it depression.org.nz/rural

DAIRY NEWS JULY 8, 2014

AGRIBUSINESS // 27

GDT among Fonterra’s great innovations PAM TIPA pamelat@ruralnews.co.nz

JUNIOR EUROPEAN

agriculture officials, typically aged in their 20s, formerly determined world dairy prices at fortnightly meetings in Brussels, before Global Dairy Trade was introduced in 2008, says Fonterra executive Phil Turner.

The director, business transformation, at Fonterra, says he remembers the Brussels meetings when he first joined Fonterra in 1999. Those young officials only cared about prices in Europe but were effectively setting world prices.

“When Australians and New Zealanders like me came along and asked if they would please do a little less adjusting of world prices they got very defensive.”

Turner was reflecting at a major Trans Tasman horticultural conference in Auckland, hosted by PMA Australia-NZ, on why

“Now we have the luxury of operating like real marketing companies trying to meet the needs of consumers and matching their needs more effectively than our competitors. It is a whole lot better way to make a living.”

Fonterra faced a problem familiar to many in the primary sector – a lack of a transparent reliable world price. Local market protection meant the only functioning dairy markets were internal; those trying to sell in the world market would have to sell bilaterally through traders or their own sales force.

It was never clear to the buyer or the seller whether they had a good or a bad deal because there was no basis for comparison.

“World markets are volatile particularly since the GFC and volatility makes it very hard to build a sustainable business.”

Fonterra decided to create a mechanism to give price transparency.

GDT makes a pool of

“People talk about New Zealand’s natural advantages in the success of the dairy industry but when you look around the world, a lot of places have similar advantages but few have our story to tell” the New Zealand dairy industry has been so successful and its lessons for other sectors.

“People talk about New Zealand’s natural advantages in the success of the dairy industry but when you look around the world, a lot of places have similar advantages but few have our story to tell.”

He believes much success has come from deregulation, opening markets and innovation. The Global Dairy Trade auction – “a huge experiment” -- is one of Fonterra’s top innovations.

“In the old days we used to have to make a living by essentially selling unwanted product through holes in tariff walls into rich spoilt markets like Japan, US and Europe that didn’t want us to be there.

product available in web based events every fortnight. It was originally every month.

“This was a huge experiment, faced with a lot of scepticism both within the company and outside.

“It was a classic innovation in the sense that it made obsolete at a stroke a whole bunch of traditional bargaining in ingredient products. From a cautious start it has been a great success. From 2008 to today we now have not just Fonterra, but seven different dairy producers from six different countries who sell product every fortnight to over 700 bidders in 40 different products categories. “The volumes have become quite substantial. The largest US exchange – the Chicago Mercantile Exchange – trades about US$111m

of cheese annually. By comparison, in the last 12 months GDT has traded an average US$400m every month.

“In my view the creation of GDT is one of Fonterra’s great-

est achievements. It has given all those who trade in world dairy products transparent prices for the first time.”

It protects both parties in the transaction from getting it wrong, means

Fonterra can declare a real profit over the value it’s added to a commodity price, means it can accurately measure the real value of milk and declare a real dividend to farmers.

Phil Turner, Fonterra

DAIRY NEWS JULY 8, 2014

28 // AGRIBUSINESS

What’s important, the family or the farm?

DOUG ROWAN Doug Rowan

MANY FARMERS must

decide what will happen to the farm after they have gone. What is needed is a formal farm succession plan.

An effective succession plan enables a smooth transition of farm ownership and control to the next generation with appropriate legal structures in place which serve the whole family.

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ital requirements and exposes the farm business to more debt ■■ The difficulty in keeping up the momentum in implementing the farm succession plan ■■ Acknowledging that every farm and family is unique and there’s no one-size-fits-all solution.

Where to start?

A farm succession plan first requires you (the parents) to start a conversation with your family and professional advisors about the future.

The first thing you’ll need to decide is whether the succession plan has the farm at the centre of the decision-making or the family who own it. This is crucial.

If the farm is the centre of the succession plan then your decisions will revolve around how to maintain and develop the existing farm so that it doesn’t fall out of the family ownership.

If the family is at the centre of the succession plan then decisions regarding what to do with the farm will revolve around what is best for the family – now and in the future.

Involve the right people In a farm succession planning exercise a team approach will bring about the best results. This team should include you both, your lawyer, accountant and banker. It’s critical that all these professional advisors are prepared to work together and listen to your real wishes.

Family expectations It’s important that the expectations of each child are managed well.

Have each of your children expressed their expectations regarding the future farm ownership and what role they hope to play? A family meeting as part of your succession planning creates an opportunity for open discussion amongst all members of the family.

Regardless of who is actually working on the farm it’s a good idea to listen to the whole family.

You may be surprised about who would like the farm retained and who is

not concerned so much.

Is your plan viable?

If a particular member of the family is appointed as the successor in respect of farm ownership it’s important for everybody to have confidence that the successor has the skills and aptitude to run the farm successfully.

The plan needs to realistically address the capital requirements of the family members who continue the farm and the level of debt that’s sustainable. The goal is to ensure success for the next generation.

A good plan addresses these questions: ■■ Would it be equitable for non-farming members of the family to allow the farming member of the family to receive a greater amount of assets when you both die?

■■ Does the family believe treating everybody equally is more important than maintaining farm ownership in the family name?

■■ How do you balance the interests of your nonfarming family members in the succession plan? Are there other resources for them?

Making it happen A major issue in farm succession planning is that the issues can become too hard and the roadblocks we talked about earlier start to appear. It’s becoming increasing popular to appoint an independent person to be responsible to keep up the momentum so that the plan is put in place, is implemented and is then reviewed regularly to ensure it’s actually working.

You are unique Every family is unique: it has a different number of children, debt loading, skill base and farm characteristics as well as expectations from each child.

Don’t delay in getting your farm succession plan up and running.

• Doug Rowan is a director of Cullinane Steele Lawyers, Levin. This article first appeared in Fineprint, winter 2014, the newsletter of NZ Law Limited member firms.

DAIRY NEWS JULY 8, 2014

AGRIBUSINESS // 29

Freight deal good for farmers PAM TIPA pamelat@ruralnews.co.nz

LOGISTICS MANAGEMENT company Kota-

hi’s deals with Maersk and Ports of Tauranga will mean far more efficient routes to market for dairy products and other primary exports, says Kotahi chief executive Chris Greenough.

“Every dollar we waste in the supply chain is a dollar less in the farmer’s pocket,” he told Dairy News. “This really is a way to reduce that waste and return more to the farmer’s pocket.”

The deal involves Kotahi making a commitment to Port of Tauranga of up to 1.8m TEU export containers over the next 10 years and taking a stake in the port company. The port in turn will invest in infrastructure to handle much bigger (6500 TEU) container ships within the next few years.

Greenough says if New Zealand does not get these larger ships it will eventually become a spoke of the larger hubs across the Tasman, which would add

7-10 days to export transit times.

Kotahi has also committed to provide up to 2.5 million TEU export cargo containers to Maersk Line for the next 10 years, starting in August. Maersk Line managing director Gerard Morrison says the 10 year contract has not been done anywhere else in the world. Maersk will introduce a new 4500 TEU service from October 2014, to Tanjung Pelepas in Malaysia, to provide additional capacity. From there cargo can go virtually anywhere in the world.

And Morrison says Maersk now has a clear path to work on introducing the 6500 TEU vessels to New Zealand.

Greenough says the deal represents a “step change in our connectiveness to the world”.

“New Zealand is served by quite a plethora of ships at the moment and most of them aren’t full,” he says. “Some of them aren’t breaking even from a return-on-investment point of view. They are burning far too much fuel per container of export; that adds to our carbon

footprint and our cost of getting to market.”

The concessions mean the Port of Tauranga can invest in infrastructure for the more efficient class of vessel, and Maersk can deploy those vessels which mean less waste, more sustainable services and more competitive routes to market.

The advantages will be available to dairy and other export sectors.

“Once we have the infrastructure and have the ships calling, those benefits will be available to New Zealand Inc,” he says.

“It requires a catalyst to make these happen.

“We are not on the way to anywhere [else in the world]; carriers have to make a dollar to keep sending ships here. If we lose the ships… New Zealand’s livelihood is a bit shaky.

“This is about securing New Zealand’s competitiveness on the world stage and most of New Zealand’s competitors are closer to the market.

They have advantageous freight flows, they are usually on the back-haul, the lower demand leg, such

Chris Greenough, Kotahi.

TIMARU PORT BACK ON BOARD KOTAHI HAS committed volume to the Port of Timaru to service the South Canterbury cargo base which has grown significantly for three-five years, Kotahi’s Greenough says.

Kotahi will also continue as one of the largest customers of the Port of Lyttelton.

At this stage there isn’t a large enough port in the South Island to handle the big 6500 TEU ships that Maersk plans to bring to New Zealand but it would be beneficial for New Zealand to have big ship-capable ports in the North and South Island. “It’s a matter of time and money.”

Cairns said the agreement gets the Port of Timaru back to the volumes it was handling in 2008

– about 80,000 20ft-equivalent containers. Tauranga bought half of Timaru and “probably overplayed trying to take over the South Island”.

“There’s a regional catchment that’s sensible in South Canterbury to move through Timaru which has capacity and we think there are advantages in transhipping over to Tauranga which is why we made that investment.”

Kotahi has agreed to commit export traffic to Port of Tauranga subsidiary Timaru Container Terminal (TCTS). In exchange for the commitment, Kotahi will get a 49.9% shareholding in Timaru.

Operations will be managed under a management contract with Port of Tauranga.

Port of Tauranga is gearing up to receive bigger container vessels.

as Europe back to China.

Most products are going from China to Europe, the ships are pretty empty on the way back and they can get almost freight free. We are opposite to that: we export more containers than we import. We have to do everything we can to minimise that disadvan-

tage which is quite excessive at this point.”

Greenough told a media briefing a key aspect is continuing support for New Zealand’s regional communities. New Zealand’s livelihood comes from the regions and they need to stay connected to the world. Some ports will

become hub ports, others regional feeder ports.

The chief executive at the Port of Tauranga, Mark Cairns, said the deal gave the port certainty to go ahead with a $60-$70m dredging programme as part of its $250m strategy for bigger container vessels.

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Bom, JY Secondary Problems Following Hypocalcaemia Around Calving.

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Schülten, A Investigation on the Efficacy of a Prophylactic Treatment Against Milk Fever in Cattle.

A Doctoral Thesis for Giessen University 1993.

Todd, Patrick Anion Imbalances in Dry Cow Rations.

Proceedings NZVA Dairy Cow Veterinary Surgeon Conference 1994.

Wermuth, N New Treatment of Milk Fever.

Proceedings World Buiatrics Conference.

Wickham Report on Practical Assessment of the Acceptability Laboratories of Calictad 50, Calcitad 25 and a Combination of Calcitad 50 and 25 as a Treatment of Milk Fever.

Report to TAD Pharmaceuticals 1987.

Zeperitz, H & Calcium Concentration Around Calving and Falkenberg C the Calol Study in Neubukow.

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DAIRY NEWS JULY 8, 2014

32 // MANAGEMENT

OAD good for gains if you ONCE-A-DAY (OAD) dairy farmers have been told they need to identify and breed cows that suit their individual systems. So said LIC’s Jack Hooper at the annual OAD milking conference. Peter Burke reports.

ABOUT 100 people,

including a reasonable cluster of OAD farmers, gathered in Wairarapa to hear what does and does not work in OAD milking.

DairyNZ and LIC staff presented. Field trips were made to the farms of Leo Vollebregt and his brothers Gerard and Peter and their wives Rebecca, Meredith and Karyn.

Jack Hodder, an LIC genetic group consultant, says breeding good replacements is important to farm profitability and above all they must be able to produce profitable milk solids.

Farmers must use herd testing records and their other Minda records to look through and see

what cows are performing under their system and try to breed more of them.

“There are several ways of improving the herd genetically,” Hodder says.

“The first one is reproduction which gives you choices about which calves you keep and then the choice is about which cows you cull. You have to choose which sires

Jack Hooper

you use. But it is important to know whether you are going to get some gain from all of them and even more importantly from which of these you are going to get most of your gain.”

OAD farmers can make big production gains if they cull their herds well.

Hodder says he knows of several who have done this and got big gains.

“One advantage of OAD herds is their improved reproduction performance and that then places the farmers in a position to have more choices about how they go about improving their herd. Whether they do it through calf selection or through culling cows. By

going to OAD they have often provided themselves with the choices and they should take advantage of that.”

Lachlan McKenzie, from Rotorua, a former Federated Farmers Dairy chairman, has been on OAD for about eleven years. He chose this to reduce the workload on his farm after he bought another farm and didn’t want to build a costly new dairy shed. He says if he had to put the 1200 cows twice a day through a 40-aside herringbone shed, they’d be milking ten hours a day and he’d never get staff to work such hours.

When he went OAD the drop in production was

Lachlan McKenzie has been milking once-a-day for 11 years.

not great. “There was no benefit for me because I had sharemilkers on the property, but it provided

a better lifestyle for the sharemilker and it was easy to attract good staff.

“It takes time to adjust

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MANAGEMENT // 33

cull well

Farm walk: Farmers go on a farm walk at the OAD conference.

it’s the same for the cows.

Initially they get fatter and the calving spread is a lot tighter – but I have no regrets.”

Look closely at the value of grazing stock off farm in winter, McKenzie

cautions. In some regions grazing costs at least $30 a cow. It’s cheaper for him to buy PKE than to pay for grazing.

“The quality of some grazing is not consistent and by grazing at home

it’s bringing fertility onto my pumice land. Consider what effect any decision has on the profit line. I am not saying my systems will work for anybody else… everybody needs to do the number crunching on how

much it is really costing and how much it is benefiting them.”

McKenzie says if he was farming on heavy clay soils that got waterlogged in winter his system clearly wouldn’t work.

OAD can work well for some.

HAVE TO BE VERY GOOD AT OAD TO SUCCEED OAD MILKING expert Professor Colin Holmes told the gathering OAD clearly does work – and very well for some of the best farmers.

But to succeed at OAD a farmer must be very good at it.

Profitability as well as lifestyle are very important, requiring close control of farm working expenses. Holmes urges all costs need to be carefully scru-

tinised, including building new and expensive milking sheds.

“But they also have to produce sufficient milk solids.

If milk solids production goes down too low it doesn’t matter if they reduce expenditure, the low MS production will still affect profitably.”

Holmes says profitability is also important given the volatility in dairy markets. But this has

always been so and in the past dairy farming was a lot more marginal than it is today.

Holmes and other speakers stressed the need to regard farms as an investment and to do the sums to discover the return on capital.

Some at the conference reported theirs as being up to 13% but many others had not done the sums.

DAIRY NEWS JULY 8, 2014

34 // MANAGEMENT

OAD the Vollebregt way to set it up quickly and we (Tahora) was acquired by much to maximise proOAD MILKING conferwere all interested in low the brothers in July 2012 duction and profitabilence attendees saw how cost so the whole thing ity on his farm, improving and a hectic two months South Wairarapa farmfollowed as they converted just fitted. pastures and feeding his ers Leo Vollebregt and his “We put up a low cost it to be milking in August. wife Rebecca make out on cows well. Over time he cow shed, some of the The 550 cross bred cows has built up the quality the OAD farm they own are run through a 40-aside components of which of his herd by culling and and operate, and how Leo were secondhand. We ‘no frills’ herringbone breeding and selecting and his brothers Peter have discovered through shed. cows which perform well and Gerard do on their Leo’s experience that The three brothers in the OAD system. farm recently converted OAD can be just as profrecognise each other’s Another important to OAD. itable and productive as facet of his operation is on strengths and on the new The Vollebregts farm TAD and so yeah close to the Ruawe are trying to mahunga River and “We try to farm well and know a bit copy that model.”

Lake Wairarapa. about the specifics of OAD - mainly Gerard says The brothers are all parts of the farm locals, owning their growing quality grass well and looking can be prone to own farms. Peter after cows well.” flooding so they and Gerard milk had to design the and run their operfarm Leo looks after staff- races so as always to have farm working expenses: ations separately. access to the dry parts ing issues, Peter the stock for the 2013-14 season Leo has farmed in and Gerard handles finan- of the farm; so far they these were $3.96/kgMS. Wairarapa 29 years, conhaven’t had a flood. They cial and the growing comThe farm will produce verting to OAD in 2006. have also been creatabout 203,400kgMS in the pliance load. They hadn’t On his 154ha he runs 610 ing a wetland on the farm been looking for a new current season. cows in two herds milked The conference attend- farm, but this one came to as part of the process of in a 40-aside herringbone improving water quality in market and presented an ees were also much intershed. He has Friesian and the area. ested in the farm the three exciting challenge.

Jersey cows but most of Because part of the The decision to go OAD brothers jointly own and the herd is now the stanwas effectively a pragmatic farm was once organic, manage with the help of dard cross bred cow. there are many different one, Gerard says. “We a herd manager and two Leo is regarded as a species of grass and they decided on OAD because staff. very experienced OAD are now going through a for us the challenge was The 194ha farm farmer who has done

OAD isn’t rocket science, says Leo Vollebregt.

process of renewing pasture with standard dairy pastures.

Peter runs 280 cows on his nearby 97ha. He says he and his brothers work well together and enjoy working on projects such as this one.

He admits the herd is not exactly what they want in the long term, but says

in order to get the farm into production they did the best they could.

“Initially we didn’t have as many options as we’d have liked when we took over the farm on July 1 and we wanted to be milking that season so we couldn’t be that fussy and couldn’t be as selective as we’d have liked to.”

As they build towards this they are taking advantage of the Friesian base in the herd and some of the Friesian heifers are being exported to China.

Leo says his brothers are good dairy farmers who understand cows and keep costs down.

OAD isn’t rocket science, he says.

“We try to farm well and know a bit about the specifics of OAD – mainly growing quality grass well and looking after cows well. There are a lot of skills involved and you rely on those skills at all levels of management and operations. You put them all together well and you have success.”

The Vollebregt brothers have in two years built an efficient, profitable farm, working together well and keeping a focus on the bottom line.

AUSSIE SNEAKS ACROSS TO LEARN TONY MARCUCCI, a dairy farmer from Warragul, 100km east of Melbourne, travelled the furthest for the conference.

He decided last year to switch to OAD. He runs 1000 cows on two farms and says the climate around Warragul is similar to many parts of New Zealand, though the summers are much hotter.

Few other farmers are operating on OAD and it is hard to get advice. “I picked up quite a few things – issues of breeding and genetics, the need to cut costs and lower inputs and focusing on a pasture based system are important”.

Marcucci says what information he picked up at the two conferences

will help fast-track his quest for improved profitability back home.

Tom Marcucci

Farmers at the Vollebregts’ milk shed.

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DAIRY NEWS JULY 8, 2014

36 // MANAGEMENT

Focus turns on new farm A NEW farm is joining the focus farm project on the Hauraki Plains.

A field day introducing the new farm and the goals of the project will be held on the Ngatea farm of Megan and Michael Webster this week. The Websters’ farm will inform local farmers for the next three years.

The focus farm project,

FIELD DAY DETAILS

Karen MacInneses’ property in Waitakaruru.

The Websters see this as “an Megan and Michael Webster’s opportunity to farm, 11am, Wednesday July 9, fulfil our potenHorahia Road, Ngatea. SN 75173 tial and strive to be the best we can be,” says Megan. “This zone.”

The couple are equity is a great opportunity to partners in the 217ha farm challenge ourselves and where they will milk 640 step out of our comfort cows this season and employ two staff. They FIRST PHASE CONCLUDED have already benefited from some of the advice on offer.

THE P3 Trust held a final field day on the MacInneses’ farm at the end of “Other farmers have May where a summary of the project was provided. been positive and offerDairyNZ consulting officer Fiona Wade says during the last three years ing to help out. We’ve had the MacInneses have met or made progress on a range of goals resulting in an increase in profit and achieving family goals for succession. a few farmers from the “A strong focus of the MacInnes family and the P3 trust has been to focus farm committee increase profit,” says Wade. To achieve this the MacInnes family and the step up and mentor us. By management team focused on getting the basics of pasture management just doing the farm walks right, improved reproductive performance, increased strategic nitrogen use, with them, we’ve learnt so forward contracting supplementary feed to have a lower purchase price/ much in that short period kgME and overall improved cost control. of time,” says Michael.

At the beginning of the project, the farm profit was $1298/ha. At the The Websters folsame milk price of $6.50/kgMS, profit in 2013-14 would be $2898/ha. lowed the progress of supported by DairyNZ, was set up by a committee of farmers in 2011 to demonstrate the profitability gains possible on a typical Hauraki Plains dairy farm.

The committee, known as P3 Trust, selected Michael and Megan Webster’s farm in Ngatea as the new focus farm, having concluded the project’s first phase on Angus and

the MacInneses and their son Matthew MacInnes by attending field days on

the property and receiving regular email updates.

“We’ve been impressed

with their improvements; it has been amazing to watch,” says Megan.

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MANAGEMENT // 37

Dana Carver, DairyNZ talks to SIDE delegate Robert McIntosh.

More bouquets than brickbats ANDREW SWALLOW andrews@ruralnews.co.nz

HOW OFTEN do you give positive or neg-

ative feedback to your staff, or anyone in your life come to that?

Research shows there’s a threshold ratio – the Losada ratio – of three positives to every negative required to gain engagement, and an optimum range running up to about six positives to one negative.

Dana Carver, of DairyNZ’s people team, told SIDE attendees that surveys in the dairy industry have found the ratio onfarm averages four negatives to one positive. Little wonder that the industry has 50% higher staff turnover than the national average.

“If they (employees) are not engaged, then turnover is going to be high,” she warned, during a workshop on staff engagement.

Most staff leave not because of money, but because they’re not engaged in the job or there’s something more engaging on offer elsewhere, she said.

Long hours, lack of career progression, attracting the wrong people in the first place, and poor people management also contribute to the sector’s high turnover.

“How do we break the cycle? We have to prioritise the time to put the people management systems in place and upskill.”

Carver said she’s worried those responding to television advertisements promoting dairying as a career aren’t going to get the experience promised because of the lack of people management skills on many farms. That shortfall is easily explained.

“Most of us have not actually been trained in people management like we have in the operational things.”

But just as managers had learned to be good with pasture and stock – the skills

progressed them to positions with staff to manage – so they could learn to be good with people, she said. “There is a formula for it, just like there is with pasture management.”

Good recruitment practice and thorough, planned orientation is the start (see panel). Recruitment should include a detailed job description with farm culture and values spelt out, at least three ways of advertising, an application form, phone screening of applicants, thorough reference checks, and face-to-face interviews done in a professional manner.

Orientation means a full introduction to the job, responsibilities, other staff, the farm and its systems. One-to-one reviews of progress should be held four, eight and 12 weeks in. Calving or other busy times are no excuse.

“You can make time for it. You’ve just got to believe it makes a difference,” Carver stressed, pointing out managers would often find half an hour to talk to a contractor about a job on the farm, yet many fail to find that time for their staff.

Good team meetings – planned, engaging and involving all, and delivering action points and results – are the next step.

One-on-one reviews should be similarly planned and scheduled. Agreeing and providing good training is also important, as is good leadership.

“The bottom line is a manager must be respected and trusted in order to motivate staff.”

Making time to get to know employees, and observe them or their work would enable genuine, positive feedback to be given, gaining engagement.

While prioritising people management, upskilling and getting systems in place may at first make a manager busier, in the longrun it’s the only sustainable option, Carver argued. “Once you can manage people, the world’s kind of your oyster.”

People and pasture management parallels

Pasture system Routine farm walks and feed wedges Plan paddock use Plan fertiliser use Use correct round lengths Result: Quality grass with good growth and correct covers Adopted from Dana Carver’s presentation to SIDE 2014.

People System Good recruitment and orientation Good team meetings One-on-one review time Good training Good communication and feedback Result: A happy, capable and efficient team that stick around

DAIRY NEWS JULY 8, 2014

38 // MANAGEMENT

Putting gibb’ in its place ANDREW SWALLOW andrews@ruralnews.co.nz

GIBBERELIN SPRAYS

are best used to fill feed deficits at the shoulders of the season and should not be used throughout the year, a workshop session

nitrogen which remains the main driver of production but a tendency to reduce tillering in ryegrass means gibberellins may give clover a boost, she added.

Besides reducing competition in the sward from ryegrass tillers, clover responds strongly to the

at the South Island Dairy Event heard.

“From a systems perspective where they sit is really to cover these feed deficits: they are not a plant nutrient,” Lincoln University researcher Rachael Bryant stressed to delegates.

They won’t replace

plant hormone producing larger leaves on longer petioles. But there may be weed effects too.

“A lot of dicots and broadleaved weeds are very responsive to gibb’.

Dock’s one of them, especially in autumn,” noted Bryant.

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autumn ryegrass could be a way to reduce nitrogen content in pasture which is often particularly high at that time of year, so such applications are being investigated as a tool to reduce nitrogen leaching risk going into winter.

Bryant explained the gibberelin sprays work by promoting stem elongation, as do plants’ own gibberellins, produced in response to increasing day length, later in the season.

Early and late applications nearly always produce a visual pasture response but not always a drymatter response, she added.

Ensuring sufficient plant nutrients are available, notably nitrogen, seems to be one of the keys to ensuring a drymatter response is obtained.

“Using gibb without nitrogen is like giving a teenage kid steroids with an empty pantry,” she warned.

The stem elongation effect means platemeter readings or other assays of pasture yield may need adjusting.

Gibb should be applied as soon as possible after grazing, at least within five days. “The response isn’t to do with plant height: it’s to do with it having had its head chopped off.”

A risk post treatment

is stem elongation resulting in all leaves of the ryegrass being grazed when pasture is taken down to the standard seven click, 1500kgDM/ha residual height, extending the lag phase until pasture starts to accumulate drymatter again after grazing.

The impact of removing all leaves was spelt out at an earlier SIDE workshop

by DairyNZ’s Sean McCarthy and David Chapman who relayed results of simulated overgrazing events leaving residuals of just 1200kgDM/ha.

“You can see straight away how that low residual was holding up growth. It was just sitting there spinning its wheels for [about 15 days],” noted Chapman.

Consequently, the overgrazed plots took 45 days to reach target grazing height, compared to 28-30 days for plots cut to the standard 1500kgDM/ ha.

A study of seven farms

by McCarthy in the lower North Island found two farms regularly overgrazing, two regularly undergrazing, and while the other three had more residuals in the target 7-9 click range, 10-20% of pastures were still being undergrazed and 10-20% overgrazed.

NAIT countdown NAIT IS entering the final 12 months of a three-year transition for cattle and all stock should be tagged and registered by July 1, 2015.

Dan Schofield, acting NAIT and farm operations manager, says this includes cattle born before the NAIT scheme became mandatory on July 1, 2012. Cattle born since July 2012 must be tagged within six months of birth, or before they are moved off farm, whichever comes first.

“However, we recommend farmers tag animals at the earliest possible time after birth. This means they will be far easier to handle. For best tag retention, animals should be tagged in the inner part of the ear between the two veins,” says Schofield.

“Farmers are reminded to tag their stock and register them with NAIT within one week of tagging, or before they leave the property, whichever is sooner.”

Registration is a key requirement of the NAIT scheme.

It links the tag used to an animal’s birth farm and shows the current location of the tagged animal. Performing the animal registration allows that animal to be eligible for lifetime traceability within the NAIT system.

“If farmers have any stock born before July 1, 2012 that they consider too dangerous to tag we recommend sending these animals to slaughter before July 1, 2015. These animals must already have a TBfree New Zealand barcoded primary eartag to be eligible and the impracticalto-tag levy will apply,” says Schofield.

NAIT is beginning to consult pending a review of the impractical-to-tag levy as it is currently expected to cease from July 1, 2015.

DAIRY NEWS JULY 8, 2014

MANAGEMENT // 39

Sam McCluggage with Gavin Lake, Clayton Smith and Alex Craig at a FarmChat forum held on the McCluggage property at Allansford, Victoria.

Proper calf rearing improves AI success RICK BAYNE rickb@ruralnews.co.nz

AUSTRALIAN DAIRY farmers Sam and Christine McCluggage follow a simple calf rearing system that proves size really does matter when it comes to reproduction success.

For five years the farm has used a fixed-time sexed semen AI programme and has made the development of well-grown heifers a high priority.

All calves are given every opportunity to grow to their genetic potential.

The McCluggages aim to rear heifers to a joining weight of 350kg at 15 months and a calving weight of at least 600kg as two-year-olds.

The programme has been worth its weight in milk, bigger bodied heifers achieving high in-calf rates and production and reproduction targets being met.

The McCluggages, who farm at Allonsford, western Victoria, hosted a Warrnambool Veterinary Clinic FarmChat forum last month to explain their system that has been overseen

by Dr Jon Kelly.

Last year the farm achieved a 53% in-calf rate using sexed semen – higher than industry expectations of about 40% -- which was boosted to nearly 90% after the addition of Jersey bulls.

“We were very happy with that,” McCluggage said. “Anything 45 or over is a good result with frozen sexed semen.

“We’d be happy to get 53% with whatever we used.”

This year the farm will rear 300 heifer calves from a 650 herd. “We probably came off a base of 150-160 five years ago,” McCluggage said.

The farm’s priority is to grow good size heifers to continue the high reproduction rates.

“We aim for a young herd with extra numbers entering at the start

of calving and well-grown heifers that can produce well and become pregnant.

“We’ve been able to breed a lot more early heifers and we’ve been able to double the amount of heifers by joining a big heifer group.

“We get probably 60-80 heifer calves right at the very start of calving.

“To get your heifers well grown gives them the best chance of conceiving and to have a good healthy calf.

The bigger heifers definitely produce better. They’re not too far off their mature herd mates if you get them up to the 600kg plus mark at calving for Holsteins.”

The calf rearing programme follows up the AI system. “Keeping things simple is the key,” McCluggage said. “We don’t have any automation in our system.”

Years ago the calving season started in mid-May but it was brought forward to March 20 as the herd grew bigger and to suit a preference for working with animals while the weather is still good.

Calves are removed from their mothers within 6-12 hours and given 2L of fresh colostrum via a tube feeder

and then another 2L 12 hours later.

Once fed the calves are put in a purpose-built shed set up for protection from wind and rain from the west and south but with the east side open to allow good ventilation.

Wood shavings 450mm deep carpet the floor, and 100mm sawdust is added later in the season. Five calves are housed in each pen.

Early in the season calves stay in the shed for only 4-8 days unless the weather is poor. They are then moved to small, well-sheltered paddocks.

“We get the calves out in the paddocks as early as we can, which you can do when you’re an early calver,” McCluggage said.

The new-born calves are fed 3-5L of fresh colostrum milk once per day, the youngest calves getting preference for colostrum.

The calves are weaned by sight from 13 weeks, though late calves may stay on milk until 16-18 weeks to help them catch up. Grain feeding continues for a further 6-8 weeks with smaller later calves offered more to make up growth. Calves in the paddocks have access to an adlib crushed grain mix and fresh water.

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DAIRY NEWS JULY 8, 2014

40 // ANIMAL HEALTH

Money from better cow fertility DAIRY FARMERS in the Nelson- reproduction and what they could do Marlborough region are invited by to improve their herd’s performance.”

The events will be held in MurLIC to learn how they could make more money from every cow in their chison, Takaka and Havelock next month. The presentaherd. tion will present the latest The coop plans to run research of reproductive events in eight towns, with performance of New ZeaCognosco, the research land dairy herds, includgroup from Anexa Animal ing local statistics.

Health, to present key find“The comprehenings of the national herd sive study was done fertility study (funded by Greg McNeil over many years, DairyNZ) and talk with farmers about reproductive perfor- with farms and herds across the country and has provided mance.

LIC’s Greg McNeil says that by fascinating insights of how sucfocusing on eight key areas, farmers cessful reproduction is achieved could achieve more profit from the on farms of all sizes.

“We’ll present these findings same sized herd.

“This is an open invitation to all in a practical way to provide farmfarmers in the area… to join the dis- ers with information they can take cussion, learn what drives successful away and apply on their own farms,

to ultimately improve their herd’s reproductive performance.”

The events are the final stage of the reproduction roadshow run in other farming towns nationwide last year.

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Developing eczematolerant dairy cattle genetics WORK IS underway to develop genet-

ics that make cows more tolerant to facial eczema (FE).

Breeding company CRV Ambreed and AgResearch are working on the project, partly funded under the Primary Growth Partnership (PGP) scheme.

CRV Ambreed’s genetic development strategist Phil Beatson points out that FE stresses cattle and presents an economic risk to farm businesses through lowered milk production, weight loss and death of stock.

For every three in 100 cows with clinical FE, it is estimated up to 70% of a herd may have subclinical symptoms, he says.

“You won’t necessarily see the disease in cows with subclinical symptoms, but it will be damaging the liver and lowering milk production,” says Beatson.

“Because many subclinical animals go undiagnosed and untreated, it is hard to quantify the economic impact of FE on the dairy industry – but conservative estimates in lost milk production are around $160M per year, depending on outbreaks and weather.”

But FE resistance in dairy cattle is a heritable trait, and that’s good news, he says. “The sheep industry has proven that if you develop a long-term breeding programme you can significantly reduce the occurrence of the disease.

“We’ve seen how sheep farmers have taken control and addressed the disease well, but in the dairy industry it hasn’t received the same degree of attention until now.”

DairyNZ strategic investment leader for productivity, Dr Bruce Thorrold, says the dairy industry supports the research being done.

“A key objective of the PGP programme is to use transforming technologies and information flows to help dairy farmers to sustainably improve dairy farm productivity through onfarm innovation and research,” says Thorrold.

The work is being funded by CRV, Beef + Lamb New Zealand, DairyNZ and the Ministry for Primary Industries as part of the Transforming the Dairy Value Chain PGP programme.

“Because FE is an issue for the industry, we have all invested in the science behind more tolerant bulls to provide dairy farmers with Phil Beatson another option for FE management. Bull testing is available to all the industry now, and it’s good to see the science being commercialised by CRV,” says Thorrold.

AgResearch scientist Dr Chris Morris and Neil Cullen have been leading the project alongside Beatson.

Says Cullen, “Our work with CRV Ambreed over the past 10 years has resulted in a bull team which will sire cows with a degree of resistance and more resilience to FE challenge than cows from the average bull. These bulls have been evaluated for FE tolerance, so dairy farmers can take a long-term view of developing herds resilient to a FE challenge.”

Beatson says the research has been particularly intensive over the past four years to establish bull teams which in one round of use are predicted to breed the next generation of cows 25% less reactive to a challenge from FE.

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42 // ANIMAL HEALTH

Well-grown heifers best bet for sexed semen A SOUTH West Victoria study has

found that dairy farmers can benefit from using sexed semen, particularly in well-grown heifers.

The Warrnambool Veterinary Clinic ran fixed-time AI monitoring of sexed and conventional semen and found that joining heifers with sexed semen at 320kg or more can produce good results.

Speaking last month at a Warrnambool Veterinary Clinic FarmChat forum at Allansford, Dr Jon Kelly said size rather than age was a key factor in reproduction success.

According to Kelly, there were benefits from using sexed semen, including more replacements, better opportunity to cull, driving herd structure younger and as an extra income stream with excess heifers.

“The most fertile animal in a herd is a well-grown heifer so farmers should target them rather than cows. Cows are inherently less fertile than heifers,” he

says.

Sexed semen will result in about 90% heifers and 10% bulls.

“Some heifers are only 12-13 months old when joining but it doesn’t make any difference to your result as long as they are big enough.

“Using the Warrnambool Veterinary Clinic fixed-time AI programme at 320kg you are likely to get over 85% showing heat at the time of AI. It shows they have all reached sexual puberty.”

The trials found sexed semen achieved an average 41% in-calf rate, which Kelly said was worth doing.

“One farmer had 26% in-calf rate but the farm only had 70% showing heat when they were receiving AI because they were little heifers,” he said.

“Herds with smaller heifers get lower conception rates. Little ones don’t calve as well while bigger heifers are much stronger performers.

“If you can’t guarantee a 30% con-

ception rate then the benefits aren’t there and you should go back to using normal semen. It all comes down to the heifers submitted to the programme.”

He added that fixed-time AI is an option for heifers at out paddocks where heat detection is difficult.

Farmers should use a team of sexed sires. “Don’t put all your eggs in one basket,” he said.

Kelly said the study across southwest Victoria farms confirmed that sexed semen is very different from conventional unsexed semen. “It is a compromised product that gives lower conception rates than conventional semen and should be used in a controlled way,” he said.

Kelly said it is also possible to use sexed semen in the milking herd. “There are a lot more cows than heifers in the herd and we should be having a crack at using sexed semen but in a controlled way. Be wary of the hangover effect.

Dr Jon Kelly says size rather than age is a key factor in reproduction success.

“Be wary of using sexed semen for too long in the joining period and affecting next year’s fertility.”

Kelly described the first month of joining as critical for subsequent herd fertility.

Farmers should maintain strict quality control, and preferably use an AI technician they have used in the past with good results to carry out the procedure. “Do all the farm can control really well – AI technique, animal handling and

heat detection.”

Kelly said the dairy industry had successfully bred high producing cows but this came at the detriment of reproduction results.

“It can be a vicious cycle that keeps getting worse unless you do something about it.”

He said it was important that farmers record a sexed semen insemination so they can analyse the result and justify its use the next season.

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DAIRY NEWS JULY 8, 2014

ANIMAL HEALTH // 43

Farmers at front line of foot and mouth detection DETECTING FOOT and mouth

disease (FMD) early allows a better response to tackle it, says DairyNZ vet Anna Irwin.

Irwin, back from a five-day training camp run by the European Commission for the control of FMD in Nepal, says dairy farmers are pivotal in detecting the disease early.

Seeing the disease was invaluable, Irwin says, “but it also brought home the importance of being alert on farms. Anyone working with livestock on a daily basis is in the best position to be our number one surveillance force.

“Foot and mouth is one of our biggest biosecurity risks, so we need to be prepared. The quicker something is picked up, the better our response will be.”

And farmers use of New Zealand’s biosecurity systems, such as NAIT (National Animal Identification and Tracing) will help prevent an outbreak.

“It’s important that farmers keep their NAIT records up-to-date, as animal tracing and accurate records are vital in any disease investigation.

In any outbreak, the ability to reliably

trace animals saves so much time.

“Nepal doesn’t have anything like our system, which makes it much harder to manage and control the disease when animals move around so much.”

If FMD were to reach New ■■ Zealand, it would damage the country’s trade reputation and halt virtually all exports ■■ of meat, animal by-products and dairy products until at ■■ least three months after the disease was considered eradicated.

Led by the Ministry for Primary Industries, the Nepal trip provided ■■ training in the clinical recognition, diagnosis, investigation and control of FMD. FMD is widespread in Nepal and outbreaks occur frequently there. The training gave veterinarians, gov■■ ernment officials and other rural professionals from FMDfree countries some of the skills required for an outbreak.

Farmers should report any-

thing they are unsure about in any livestock to the biosecurity line by calling 0800 80 99 66.

FMD GUIDE Affects all cloven-hoofed animals (e.g. cattle, sheep, goats, pigs, deer).

Is caused by a highly infectious virus. There is no cure.

It can be spread by saliva, mucous, milk, faeces and can be carried on wool, hair, grass, footwear, clothing, livestock equipment and vehicle tyres. It can also spread by wind.

Animals are typically depressed, not eating, lame or reluctant to stand-up. They will have a sudden drop in milk production (in Nepal it was usually halved), will drool and chomp teeth. Animals usually have a high temperature in the early stages.

Vesicles (blisters) will rupture on the muzzle, inside the mouth, on feet (between claws) and on teats.

Sires named best of season TWO LIC bulls have won sire-

of-the-season awards from Jersey and Holstein-Friesian breed societies.

William SIA Duetto won Jersey New Zealand’s JT Thwaites Sire of the Season and Hazael Dauntless Freedom won the Holstein-Friesian New Zealand’s Mahoe Trophy at the societies’ annual conferences this month.

LIC’s general manager of biological systems, Geoff Corbett, says these are “prestigious awards many breeders strive for”.

“Congratulations to the Flemings (Otorohanga) and the Schoutens (Invercargill) for breeding these elite bulls and having your expertise recognised too.”

Duetto and Freedom were pop310034 Willand SIA Duetto BW: $249 Sire: Shalendy Ideal Ascent S3J Breeders: Gavin and Rosemary Fleming from Otorohanga.

ular with farmers this season, both sitting high on the ranking of active sires (RAS) list for their breeds.

Duetto is third on the Jersey RAS list, with BW of 249.

Freedom was sired by MacFar109230 Hazael Dauntless Freedom BW: $272 Sire: MacFarlanes Dauntless Breeders: Hans and Margaret Schouten (Hazael Farms) from Invercargill.

lanes Dauntless, and is eighth on the Holstein-Friesian RAS list with BW of 272.

The Mahoe Trophy is awarded to the NZ bred bull whose proof has earned the most points for traits, daughter production, conformation and management.

The JT Thwaites Sire of the Season award is given to the bull that meets criteria in production and traits other than production, and has the highest BW after the May animal evaluation run.

DAIRY NEWS JULY 8, 2014

44 // ANIMAL HEALTH Ray Kitchen believes earlier preg testing through herd recording samples will allow him to close up the amount of time cows are empty.

PHOTO: FARMWEST.

Testing made easy TECHNOLOGY FOR

diagnosing pregnancy from milk or blood samples, for example through herd testing services, is now available from several Australian companies.

The industry learned about the Idexx technology at last year’s Herd 13 conference when Neil

Petreny, from CanWest DHI, described its enthusiastic uptake by Canadian dairy farmers.

To date, Northern Herd, Farm West, HICO and Nugene have signed up for the technology and will soon make it available to dairy farmers in regions other than NSW,

Queensland and Tasmania.

The test can detect cows pregnant at 35 days from a milk sample and at 28 days from a blood sample. The milk sample test is a week earlier than pregnancy testing through traditional rectal palpation.

The Idexx test detects pregnancy-associated glycoproteins (PAGs) that spike in a cow’s system from about 25 days in pregnancy and the farmer usually has the results within one-three days of herd recording.

Boyanup, WA, farmer Ray Kitchen, principal of Carenda Holsteins, has used the service since it became available through FarmWest in Western Australia in September 2013.

“Preg testing with milk samples is quick and easy and a lot less stressful on the cows and the operators,” he says.

Kitchen also sees it as a way to reduce the time cows are empty, thus improving profitability in his 400-cow herd which calves in three batches per year.

“Days empty cost money. Getting cows back in calf sooner means we will be milking more fresh cows than stale cows and that means better profitability.”

The first time he tried the service Kitchen had 50 cows analysed for pregnancy.

“We found about two thirds were in calf as a result of a mating programme we were running.

Early preg tests are a big advantage for a synchrony programme. It means we can retreat the empty cows a week earlier so they are ready to inseminate

sooner.”

A few cows receive a ‘re-check’ result meaning the cow may be too early in pregnancy to detect the PAGs or that she may have lost an early pregnancy.

Kitchen found the logistics of preg testing with milk samples simple.

“I went into our herd records on Easy Dairy to see which cows had been mated more than 35 days previously. Then I circled these cows on the herd recording paperwork to order flag them for pregnancy testing.

“The results are easy to understand and it’s a 30 second job to update our records.”

As his herd recording date always falls near the end of a week, Kitchen usually has the results in time to identify the cows not in calf by the Friday afternoon and then have them cycling Sunday night ready to inseminate Monday morning.

Another advantage of the technique is accurate calving dates.

“That means we can dry the cows off at the correct time. We want our cows to have enough dry time to set them up for a productive and fertile lactation, but if we give them too long we face a loss of production and income.

Now we have a tool to get it just right.”

Rod Brasher, FarmWest, said providing the service incurred a lot of expense for laboratory, testing equipment and software but he was confident in the value of the technology, voted the dairy industry’s best new product at the 2013 World Dairy Expo.

• This article was first published in the June-July 2014 Australian Holstein Journal.

GET SOCIAL Keep up with the latest stories from Dairy News by following us on:

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DAIRY NEWS JULY 8, 2014

ANIMAL HEALTH // 45

Supplement counters cow’s ‘massive’ metabolic stress DENNIS SCOTT

A HIGH-PRODUCING

dairy cow is under massive metabolic stress and the liver is at the crossroads of metabolism.

A newly available supplement called Metabolase, from European pharmaceutical firm Fatro, Italy, corrects metabolic balance in all states of toxicosis, fatty liver, fatigue and stress by fine control of metabolism, improved energy uptake, scavenging of free radicals and ammonia clearance and detoxification.

The product is a wellresearched parenteral (injected into a vein or muscle or under the skin).

Metabolase supplies essential vitamins and amino acids, to enable the body to be naturally more efficient in its own energy metabolism. It has four major actions: 1) Improving energy uptake Inside every cell are the mitochondria, the cell’s ‘power’ producers. Muscle cells have many mitochondria, allowing them

to respond quickly to the need for doing work.

L-Carnitine is the only physiological carrier for transport of fatty acids inside the mitochondria, where they are burnt to produce energy.

Thus carnitine, a major component of Metabolase, stimulates complete glucose oxidation and minimises lactate production and helps the organism use fats for energy production. The result is a reduction in metabolic acidosis, a delay in muscle fatigue

and an improvement in the maintenance of contractile force.

Deficiency of L-carnitine results in the blockage of-oxidation of fatty acids resulting in a reduction in energy supply to cells and also to accumulation of free fatty acids in cells, leading to toxic effects on the cells. All of this results in ketosis, hepatic steatosis, muscular asthenia, muscular atony and cardiac insufficiency.

Fructose and sorbitol are added energy sources.

vides not only fuel but also the spark. Like the ‘give a man a fish or teach him how to fish’ story, Metabolase ignites the

Dennis Scott

Fructose is a ready-to-use source of energy while sorbitol is a sugar alcohol the body uses slowly.

While the energy content is high this is only part of the story; it is all very well providing fuel to an engine but there must also be ignition for it to work. Metabolase pro-

tic acid scavenges free radicals in aqueous and fatty regions of cells (as opposed to vitamin C, aqueous only, and vitamin

“Like the ‘give a man a fish or teach him how to fish’ story, metabolics ignites the body into burning its own energy.” body into burning its own energy.

2) Fine control of metabolism Vitamin B12 is involved in the formation of red blood cells and it stimulates appetite, promotes growth and releases energy.

Vitamin B6 is a cofactor in many energy-producing metabolic reactions, is important for protein and amino acid metabolism and is essential in releasing energy from muscle glycogen.

3) Scavenging free radicals Metabolase contains five antioxidants. ThiocMetabolase helps cows to be naturally more efficient in its own energy matabolism.

E, fatty only), arginine has a favourable influence on antioxidant defence systems in the lungs, lysine can increase intestinal calcium absorption and increase the renal conservation of the absorbed calcium thus improving calcium balance during the transition period, methionine is essential in

a wide range of biochemical reactions and glycine is useful in reducing oxidant damage following an inflammatory response.

4) Ammonia clearance and detoxification All cows after calving have increased circulating ammonia because of decreased ureagenesis caused by hepatic lipid accumulation. Ammonia induces muscle weakness and can cross the bloodbrain barrier and cause central fatigue.

Ornithine, citrulline and arginine are needed to drive liver detoxification of ammonia and aspartic and glutamic acids in muscle.

• Dr Dennis Scott is a vet for Ethical Agents.

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DAIRY NEWS JULY 8, 2014

CALVING // 47

Extra effort now will pay dividends later TO SET up a dairy cow for a long, productive life you must give her the best possible start.

According to DairyNZ, extra effort now will pay dividends throughout a cow’s milking life. Wellgrown heifers make much better milking cows; growing them well starts from the day they are born.

It’s important to follow best practice in calf rearing, DairyNZ says.

All calves, including bobbies, must get adequate fresh colostrum in their first 24 hours of life and should be fed colostrum, or a colostrum substitute, for at least their first four days.

Always handle calves

gently and with care. Do not allow anyone to throw, hit or drag a calf at any time; electric prodders must not be used.

Calves not with their dams must be kept sheltered – warm and dry.

Calf pens must be fit for purpose and well maintained. Bedding areas must be comfort-

REGULAR HEALTH CHECK CALVES MUST be checked twice daily for signs of ill-health and treatment given to any found ill.

Check as follows: ■■ Noses are clear of discharges and are moist and cool ■■ Calves are alert and have responsive ears with no infection around the ear tag ■■ Navels are clear of infection ■■ Mouths are clear of ulcers

■■

■■

■■

Calves have shiny, supple coats.

Note that if a calf’s pinched skin is slow to return to normal it may be dehydrated and need electrolytes Vaccinate, treat for parasites and provide access to shelter Control the spread of disease.

Calves of the same age should stay in the same pen. However, small or unthrifty calves may be better off with a younger group.

able, clean and dry, with adequate ventilation to ensure ammonia gas does not build up. Exposed concrete, bare earth and mud are not acceptable.

Calves should be fed at the same times each day to minimise stress and have ready access to large quantities of clean water.

Feed calves well to rapidly achieve weaning weight with a well developed rumen.

Colostrum is very important: a calf should drink at least 2-3L of fresh colostrum during the first six hours of life to get the immunoglobulins that act as antibodies. To achieve this, collect new calves twice a day and give them first day colostrum regardless of whether they have had a feed.

First day colostrum is valuable (even if it con-

Best practices in calf rearing result in successful milking cows.

tains blood or clotty mastitis milk). It should be fed fresh. Store it (other than first-day colostrum) in several drums to reduce risk of loss; keep it cool and stir it twice a day.

A colostrum keeper may be added to maintain the sterility of the product, or add a sachet of Ezy-yo to each drum; colostrum can be frozen for up to six months. Thaw in hot water, do not microwave.

Routine good hygiene and health practices are also critical. DairyNZ recommends scrubbing all

feeding equipment well with hot water and detergent. Clean calf pens often and disinfect the places where sick calves

are treated. Spray pens weekly with a broad spectrum disinfectant; remove sick calves promptly to a sick bay.

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DAIRY NEWS JULY 8, 2014

CALVING // 49

Research shows impact of poor teat design

floating in a watery red swollen teats, butto of Do you want make a fluid real success while the calves in the greater concern was that Milk Bar teat group had teat canalsseasons appeared ofthe this calf rearing? even, porridge-like curdto be open, and the kera-

pany says. “The trial is still in progress so we still can’t ment firm Milk Bar says a trial commissioned by the answer the ‘why’ question, but we have evidence that company shows poor teat confirms groups of calves design can impact prefed on a faster teat with an weaned calves. internal valve will crossThe trial earlier this suck, while it is rare in year looked at the influgroups of calves fed from ence of teat flow rates in Milk Bar teats,” the comcommercial milk feeding systems on calf health and pany says.

“We have been able to performance.

CALF REARING show CONCEPTS the udder damage Milk Bar says the precaused by calves crossliminary results are sucking. It has long been “shocking” and clearly suspected that cross-suckshow the negative effect ing can lead to heifer maspoor teat design can have titis. We knew this was on pre-weaned calves. happening from obserThe brief was to feed vations by farmers, and six groups of calves from we are concerned at the the same farm, the same impact this can have on rations and in the same facility. Three groups were the production capabilities of that heifer when she to be fed with Milk Bar comes into the herd.” teats to give a controlled While the trial is still feeding rate, while the other three groups were to ongoing, there are some preliminary results to be fed with a “faster teat share for this calving with an internal valve” season, the company says. that feeds at a similar “It was apparent that speed to teats sold in New calves in the ‘faster teat Zealand, North America with an internal valve’ and Europe. groups cross-suckled vigPrevious studies have orously after feeding. They shown that the feedsuckled on navels, ears and ing rate influences postdeveloping udders. These feeding cross-suckling in groups of calves, the com- calves tended to have

CALF REARING equip-

Calf teat in perfect condition: Milk Bar say this calf has the best chance of avoiding infection.

ing. Further analysis is tin plug appeared to have being undertaken to see been sucked out. exactly what effect this “It is too early in the has on digestibility but trials to answer the quesit is interesting to note tion, ‘Why do calves fed that during the first week on a faster teat with an alone, the calves fed on internal valve cross suck Milk Bar teats gained 17.5% so much while it is rare in www.flexitunnel.co.nz Phone 03 more weight than the groups of calves fed with other groups.”

Milk Bar teats?’ But the Milk Bar teats have an research trial has made it internal web that controls obvious that they do, and the flow rate, stopping the impact of these damcalves gulping and encouraged udders coming into aging the correct suckling your herd is worth thinkaction and saliva producing about. We will be tion required for better monitoring these calves through to milking in 2016 curding, higher weight gain and less cross-suckand will keep farmers ling, the company notes. informed on their prog“Calves must suckle on ress.” a Milk Bar teat, just like During the trial, some they do from a cow. If you calves from both groups squeeze a cow’s teat the were euthanased to see milk goes back into the what the effects of differudder. To milk a cow you ent feeding speeds had must strip downwards within the digestive tract.

The difference of the curd while squeezing the teat between thumb and finstructure in the abomagers. When a calf is on a sum was noticeable two cow it must suckle hard to hours after feeding. obtain milk.

“Calves in the ‘faster “If you squeeze a Milk teat with an internal valve’ Bar teat, you will get the group had clumps of curd

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exactly the same way as it does from a cow. This is the natural way for a calf 322 4960 to feed and their digestive system will stay healthy as a result.

“A common misconception is that when a cow ‘lets her milk down’ the milk is readily available to the calf. In fact she will only let it down into the teat canal and the calf still has to suckle hard to obtain it; milk is definitely not forced out as it is when you squeeze a teat with an internal valve*.

“This misconception has led to numerous teats with internal valves being developed. Unfortunately when you squeeze a teat with an internal valve, as a calf does when it suckles, the milk squirts out with force.

“To get milk from a teat with an internal valve

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a calf will pump the teat and milk is forced into the mouth. Force feeding is a completely unnatural way for the calf to obtain milk.

We suspect that the digestive system simply cannot cope with this volume of milk; hence they will suck on another calf, or on their surroundings to satisfy their natural suckling urge.

This force feeding could be the cause of the problems you may be seeing in your sheds of cross-

suckling and nutritional scours.”

Milk Bar says it will continue researching so farmers can make educated decisions for calves.

“If we can help feed calves correctly and prevent cross-suckling damage to developing udders, thereby reducing the risk of heifers developing mastitis in their first lactation, then we feel we will have invested wisely.”

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DAIRY NEWS JULY 8, 2014

50 // CALVING

Calves thrive in shelters TONY HOPKINSON tonyh@ruralnews.co.nz

FIRST IT was tunnel

houses for growers, then came stock shelters for

Mesh on the wall allows breeze

MOLASSES • • • •

cows and calves.

Morrifield Developments Ltd, Invercargill, saw it was onto a good thing.

Now, one of its sheds used to rear 140 calves

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Palmerston North Nelson Reefton

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Christchurch

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annually is still in service after several years.

Typically a stock shelter has two 9m spans and is 27m long. The walls are 1200mm high plywood which excludes wind that would chill the calves.

Above this wall is a run of 1200mm wide mesh.

“This allows some breeze above the calves which helps remove odours,” says Morrifield Developments co-director Allister Morris.

Clear plastic roofing admits sunlight that helps dry the floor sawdust, 300mm deep on a concrete base. At the end of each calf growing season the sawdust is rotary hoed to bring any moist material to the surface to dry out.

“Because the bedding is kept dry there is little if any rotting or breaking down and only a small amount of sawdust is needed at the start of each season.”

Morris says his company’s calf pens withstood big loadings of snow during the storm that wrecked the Southland stadium.

It eventually melted away.

The shed pictured had four pens to suit an automatic calf feeder. More pens can be built and specifications altered to suit individual needs. This shed had gates at one end to allow calves access to nearby paddocks.

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life contributes markedly to their rumen development and contributes to life-long health and production, says fibre nutrition maker Fibre Fresh Feeds.

Now is the time for calf management plans that realise the potential of new calves, including high nutritional fibre in calves’ diets within their first few weeks.

This is critical to animals’ long-term health and development, says the company’s national sales manager Bob Bell. “It’s critical to have a plan in place for calf rearing, and to make sure the plan is communicated [early] to the people in the calf shed.

“It doesn’t need to be complicated, but even a simple plan will ensure you have given the process some thought.

Every day counts in getting calves off to a good start, and if you don’t have a good plan in place, you run the risk of compromising the farm’s performance.”

Quality fibre in the early days of rumen development is part of getting this early formula right, Bell says.

“Fibre in calves’ diets within their first weeks of life encourages faster and healthier rumen and digestive development, allowing calves to transition to and thrive on grass much faster. It also leads to health and production benefits.”

This saves costs and leads to better long-term results, especially in pasture-based systems; also, calves will better utilise other solid feeds.

Bell says fibre also improves rumen motility and provides essential nutrition for sustained growth, but the fibre must be of good quality fibre. The likes of hay, straw and silage provide little nutritional value, instead taking up the space needed for energy- and protein-rich feeds.

He says his company’s FiberStart is for consumption alongside traditional meal products “while providing essential nutritional value for animal growth, and it helps to establish the correct microflora population needed for rumen and gut development”.

DAIRY NEWS JULY 8, 2014

CALVING // 51

Kickstart for rumen, aid to gut health PAUL DREW

HALTING OR stunting a calf’s health or growth has a life-long, knock-on effect, and getting the animal back on target will be costly.

Target weights are important milestones to reach, as stunted animals are usually below their liveweight targets for their entire productive life. In dairy calves, a good rule of thumb is that if an animal is 10% below liveweight target at calving, she will produce 10kg less milk solids and incur a 3% reduction in the 6-week in-calf rate (first calf).

It is important to note the knockon effect, as calf rate determines next year’s calf rate, milk supply and feed demand curves.

‘Gut health’ issues affect the morbidity of the calf and its ability to digest and absorb nutrients. Scours and digestive

upsets can stunt the animal’s development and even cause death. Dehydration is the usual cause of death in calves with scours.

A sickly yellow faeces colour indicates a gut that is not functioning optimally. Probiotic use helps a calf through the stressful period of rearing, maintaining gut health, gut development and integrity.

It is especially useful in the first 14-21 days of development and change in the calf ’s life, putting its gut stability on the back foot.

VitaCalf is intended to help keep a calf’s gastrointestinal tract healthy and to kickstart the colonisation and development of the rumen. The supplement

Target weights are important milestones to reach, says Paul Drew (inset).

contains Lallemand’s rumen and monogastric-specific live yeasts with a yeast cell wall extract high in mannooligosaccharides (MOS) which blocks pathogenic colonisation within the gastrointestinal tract.

Levucell SB is a concentrated live yeast that enhances the nutrition and health of a monogastric, pre-ruminant animal. It contributes to reducing

pathogenic microorganism concentration, reinforcing the intestinal microflora equilibrium and the stimulating of the animal’s immune system. With Agrimos, an effective prebiotic MOS product, the combination helps maintain gut health and development.

Levucell SC is a concentrated live yeast specifically selected for ruminants, as a rumen probiotic. This strain of Saccharomyces cerevisiae has shown

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DAIRY NEWS JULY 8, 2014

52 // CALVING

Workshops include how to nurture, kill calves PETER BURKE peterb@ruralnews.co.nz

‘STOCKSENSE’ WORKSHOPS running

nationally will equip new entrants to the industry

for the demanding calving season, says the organiser, DairyNZ. Practical skills are especially in view, and there is another dimension, says Chris Leach, DairyNZ’s manager,

animal husbandry and welfare.

“While we were developing these workshops the Minister for Primary Industries announced changes to the use of blunt force trauma. So we said…

let’s run workshops to cover the humane slaughtering of calves [by] senior dairy staff.

“We are looking at a session on the management of cow health and a session on how to stay

Taranaki farmer Tim DeBeer (left) learns about birth presentation at a calving workshop with tutor Joe Craddock.

fit and healthy during the calving season.”

Despite all the publicity about banning the use of blunt force – specifically killing unwanted calves with a hammer, Leach is concerned that the mes-

sage hasn’t got out to everybody.

“It’s one thing to know about the changes, but we are looking to support farmers by providing them with best practice so they know their options [for] doing this in a humane way.”

Leach says the captive bolt method is deemed the best option and affordable

– now costing no more than $400 plus charges.

“One benefit of the captive bolt is that farmers don’t need a firearms licence – a major advantage. Of course we are advocating safe storage of this equipment, including keeping the [charges] and the captive bolt in separate places.” www.dairynz.co.nz

Reading the early signs SINCE INDUSTRY new entrants may not be academi-

cally inclined or literate or numerate, the workshop sessions will be fun and angled towards ‘active learning,’ says Chris Leach.

“We start off looking at observation skills – seeing the early signs of cows going into labour. We use a calving barrel with a calf cadaver inside which allows workshop participants to have a feel and find out what a calving presentation feels like. [Then they will be able] to identify what abnormal presentation feels like, and know how to report that and when to call for help.”

The other focus is on calving cows, going through the process of mothering cows and calves and then safely transporting neonates back to the calving shed. Participants will also learn the importance of colostrum as the first feed.

All this differs from calf rearing, a task done by other farm staff.

Keeping staff healthy and fit during calving is also in view, says Leach.

“We must look after people, see that staff get a reasonable roster and are not asked to work extreme hours. And they must be well fed, well nourished, get good sleep and stay fit and healthy during the season.

“Planning, a good roster and good training ahead of the calving season… minimise the effect of those long hours.

It’s vital to work as a team – good communication, good understanding, good policies and procedures to ensure everybody knows their roles and responsibilities.”

Staff need to know that if they are not coping they can discuss the situation with their managers.

One practical aspect of the workshop is showing farmers and staff how to prepare a portable calving kit including metabolics, calving ropes, ear tags, spray paint, gloves, torch, notebook and pencil and even some energy bars for workers.

“We suggest the kits are put together before calving starts in earnest, so it’s part of the planning preparation.

The kits should go in a watertight bucket with a lid, and be close to hand.”

DAIRY NEWS JULY 8, 2014

MACHINERY & PRODUCTS // 53

Tag system reads heat, gives go-ahead for AI GARETH GILLATT

A SMART eartag launched at the Waikato field days could improve animal health and reproduction management, says its marketer Samen NZ, a dairy genetics company.

The Agis CowManager SensOor smart-tag system detect heats and health problems from the way a cow moves and from its body temperature, says national sales manager David Banham.

Each cow sensor unit has a gyro meter, pedometer, thermometer computer chip, transmitter and long-life battery built into a

moulded plastic button acting as the male tag.

The sensor measures a cow’s movement, temperature and eating habits, sending that information back to the farmer’s computer via a wi-fi signal passed on by routers placed at key points on the farm.

This provides data a farmer can use to better manage a herd and improve herd performance, Banham says.

A key improvement would be at mating, ensuring cows were inseminated when cycling was strongest.

While signs that a cow is cycling are fairly easily read, the main heat is preceded by a shorter semi-heat

which drops off very quickly. Here the tag comes into ‘play’, Banham says, in its ability to differentiate between two heats, based on a cow’s head movements and temperature. CowManager can detect the best time to apply AI straws with 98% accuracy.

“The farmer will get a text and know with absolute certainty which cows he needs to pull aside for AI.” Head movements also help farmers catch sicknesses early, Banham says.

By comparing a cow’s time spent eating with its time spent chewing cud, the software can detect milk fever or other metabolic problems 8-12 hours before

visual signs emerge.

In monitoring head movements the sensor can detect when a cow goes off its feed which, along with body temperature, indicates illness.

Tag loss rate has been found less than 1%; they are powered by batteries guaranteed for five years.

Banham says with tags costing about $20 each, a farmer would be able to recoup the cost within the first year, after which the return would be 200-300% within the first three years.

Agis has developed an Android app for the system.

Tel. 07 889 0087 www.samen.co.nz

Samen national sales manager David Banham at the field days in Waikato.

Rumen focus counters late calving drawback Waiuku farmer Scotty Shuker gives fibre supplement to late calves.

A LATE-CALVING farm is said to

be countering its newborns’ nutrition “struggles” by feeding them a fibre supplement intended to improve rumen development.

The product is FibreStart, made

by Fibre Fresh Feeds.

Waiuku dairy farmer Scotty Shuker’s 126ha property lies alongside the mouth of the Waikato River. It is characteristically wet, which means plenty of grass, but its calves are born much later in the season than those of farms nearby.

Shuker determined to clear this hurdle, says the nutrition company.

“Late calves traditionally struggle and when summer comes around; they’re not as healthy or developed as their earlier counterparts,” Shuker is reported as saying.

“They catch up eventually, but

we wanted a system that made sure we didn’t have the setback in the first place – we wanted to avoid the check in growth we were seeing after weaning. So we set about changing our systems.”

Shuker encountered Fiber Fresh Feeds at the Waikato field days, noting the research the company had done on rumen development and the benefit of rearing calves on fibre products.

During the farm’s first, trial season the calves “went straight into the paddock and started eating grass no problems,” Shuker says.

“They would deck a paddock in two days and still be wanting more.”

The FiberStart is also reported to work well alongside the farm’s existing meal-based systems.

The calves are more robust

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and bigger come summer, without having suffered any checks in growth during weaning.

And the heifers “look more capacious in the stomach, and go straight to grass and eat it down hard.”

Time is being saved by feeding the calves only once a day “from the start and then we leave them plenty to nibble on so they’re constantly full and happy. They drink a lot less milk too.”

Over the past couple of years Scotty has further refined his systems to become even more efficient.

“We’re trying to improve all the time. Dad raised us to always look at and be open to new ways of doing things.” www.fiber-fresh.com

DAIRY NEWS JULY 8, 2014

54 // MACHINERY & PRODUCTS

Fert savings at your fingertips A FERTILISER company has launched an online store, promising farmers savings of as much as $85 per tonne on standard products.

FertDirect launched its website www.fertdirect.co.nz at Queen’s Birthday weekend, marketing New Zealandsourced and import-to-order products.

It’s the first online service of its kind to be offered nationwide and FertDirect business manager Rob Williams says it’s designed to save farmers money without compromising on quality.

“Our aim is to deliver factory-tofarm savings.

“By cutting out all infrastructure, salesman and other costs involved with the traditional fertiliser supply chain we can pass those savings straight to our customers,” he says.

Farmers simply need to choose their product, tonnage and which New Zealand port they want their fertiliser delivered to. Imports generally take 6-8 weeks to arrive while New Zealandsourced products can be delivered immediately to the farm.

“Our staff have 30 years’ experience in the fertiliser industry so we have a strong network of international manufacturers and suppliers behind us,” Williams says.

“That enables us to work directly for farmers – sourcing fertiliser from manufacturers, arranging production, paperwork, shipping, customs, tax, port clearances and de-vanning. All our customers need to do is arrange delivery to their farm.”

Williams says even when transport costs are taken into account, FertDirect will still be a much cheaper option than New Zealand’s other main suppliers.

“Transport prices for full truckloads are very competitive. And if farmers were buying bagged fertiliser through their local store they would have to pay a ‘through store charge’ on top of the price per tonne plus a bagging fee. You won’t face that extra cost when buying from us.”

FertDirect was formed earlier this year after a trial in Waikato and Bay of Plenty in 2013.

FertDirect says its online store offer savings for farmers.

“We wanted to test our sales process to make sure manufacturers could meet our delivery times and product specifications – which they did,” Williams says.

“We sold about 1000 tonnes of product during the trial and passed on savings of $60,000 to those farmers involved. They were pleased with the product they got and all of them have re-ordered so we knew we were onto a winner.”

FertDirect specialises in standalone products such as ammonium sulphate

and guano phosphate and Williams says quality is paramount.

All products are tested prior to shipping to ensure they meet specifications and arrive in good condition.

Once they reach New Zealand, samples are again taken from every container and sent to a laboratory for further testing. Batch numbers are recorded for every order despatched to maintain quality control.

“We are offering farmers the opportunity to plan ahead and get the best

possible price for the basic fertiliser products they need.”

Williams is also encouraging farmers to contact FertDirect to discuss other fertiliser products they may wish to buy that aren’t listed on the website.

The online ordering system is fast and easy to use, and prices cover delivery to ports in Bluff, Dunedin, Lyttleton, Mount Maunganui and Napier. “If you would like a quote to another port simply complete our online enquiry form and we’ll email you a price.”

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DAIRY NEWS JULY 8, 2014

MACHINERY & PRODUCTS // 55

Gains for one-ring milking liners SKELLERUP HAS

redesigned its Reflex milking liners, formerly made with two tension rings but now having only one.

The result is improved cow health, milking efficiency and milk quality, says national manager Perry Davis.

“This innovation increases the effective length of the liner barrel, lowering the collapse point and so reducing the likelihood of teat pinching when cows are being milked.

“Teat pinching can cause teat damage and susceptibility to mastitis and infections, so anything that helps prevent it

is a big gain for cow comfort and health.”

Synthetic rubber compounds mean the second tension ring is no longer needed, Davis says.

When liners were made of natural rubber, the second ring could be retensioned during their life as the rubber stretched and lost elasticity.

“This is no longer an issue with synthetic rubber liners. The Reflex range is designed to keep its tension to 2500 milkings – its recommended replacement.”

In recent years two tension rings on Skellerup liners have been used to enable them to fit stan-

dard shells (150-155 mm) and short shells (140 mm).

“Short shells have a small percentage of the market, however, and having two tension rings on liners can be confusing for farmers, so we redesigned all but one of the Reflex liners to remove the second ring and improve performance at the same

Reflex milking liner

time.”

The Reflex M22 multifit liner, sold with or without vacuum shut-off tailpieces, is the exception: it still has two tension rings to accommodate 140 mm short shells.

The range now offers the best milking plant fit for a herd, be it Jersey, Friesian or crossbred, Skellerup says.

“Original plant equipment is fairly rigid and does not typically lend itself to that degree of flex-

ibility; Reflex offers a practical, cost-effective proposition for consumable replacement.”

Blue Line and Reflex products are now sold in New Zealand under the

one Reflex brand including tubing and dairy accessories and milking liners. www.dairybestpractice. co.nz

A N E W A P P R OAC H T O E N G I N ES

New vaccine blocks BVD transfer A NEW vaccine against bovine viral diarrhoea

Ultravac BVD can be bought from vet surgeries

At the heart of any Deutz-Fahr tractor is its engine. It’s therefore reassuring to know that Deutz is one of the largest independent manufacturers of diesel engines in the world. Our modern high torque, low emission and fuel-efficient engines are supplied to many of the world’s leading automotive companies and are performing tirelessly in every corner of the globe. To join the record number of farmers benefiting from the power and efficiency of a Deutz engine, contact your Deutz-Fahr dealer today.

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(BVD) prevents BVD transfer from mother to foetus – a critical pathway that makes the disease very difficult to control.

The product is Ultravac BVD, from Zoetis.

The company says at least 60% of cattle in New Zealand have been exposed to the BVD virus and $150 million lost to the industry – $220 per infected cow. Causing these losses are lowered conception and milk production and more abortions.

Zoetis market development manager Dr Wayne Clough says more farmers are learning of BVD’s effects on their finances and animal health. He refers to “a decade of research evaluating the impact of BVD and major advances in how we can detect it in herds”.

“When it comes to protecting a herd from BVD, Ultravac BVD has a number of features that make it particularly useful.”

And within 4-26 weeks a second booster shot of Ultravac BVD may be given, making it a flexible vaccine to administer.

The vaccine is injected under the skin, rather than into muscle, making it ‘cow friendly’ and easier to administer, Zoetis says.

A 30-day in-use shelf life helps reduce wastage, and allows the booster shot to be given from the same pack as the first shot.

Zoetis plans to work with veterinarians in their efforts to raise farmers’ understanding of BVD and its effects on their business. The BVD Steering Committee has for some years outlined control measures for farms to counter BVD infection and transmission.

DAIRY NEWS JULY 8, 2014

56 // MACHINERY & PRODUCTS

Standard but premium TONY HOPKINSON

THE LATEST addition to the DEUTZ FAHR 5 series is the 5110 (110hp) Vista spec. The Vista unit made its debut at the National Fieldays alongside the all-new 6 and 7 series. The addition of the Vista spec completes the 5 series line up for Power Farming New Zealand.

First in the manufacturer’s series 5, it is referred to as a standard model “but in fact has a lot of features associated with premium models,” says Power Farming’s North Island Tractor Sales Manager, Alistair Horrocks.

The series has four models (100-130hp) occupying the medium-power category of the Deutz-Fahr range.

Features include three rear remotes powered by an eco-pump which gives increased flow at low engine revs.

It has four wheel disc braking, safer on hills. The 5 series Vista also features ‘Stop and Go’. “The system disengages drive to the transmission by simply touching the brakes. Releasing the brake pedal allows smooth modulated take up and drive making it extremely useful in applications such as front end loader work.”

The motor is a new Deutz 3.6 litre tier 4 common rail engine.

Emissions compliance is reached using a diesel oxidation catalyst which requires no servicing or maintenance. This removes the need to use adblue or a particulate filter making it extremely user friendly with low mainte-

Stalosan F

Alastair Horrocks, tractor sales manager Northland for Power Farming.

nance costs.

The tractor styling is by Giugiaro Design which gives them a modern look from outside and the cab is designed so that all the

controls fall easily to the driver’s hands and feet, ensuring comfort during long working days.

Tel. 07 902 2200 www.powerfarming.co.nz

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Pen treatment helps keep bugs at bay HAVING PPROBLEMS controlling bugs and viruses

in confined stocking environments?

Stalosan F is said to be known in the pig and poultry sector for killing bacteria, fungi, ammonia, viruses, parasites and moisture, says the product supplier Agrivantage.

Managing director Warren Tanner says it is proven where stock densities are high and lengthy enclosure is typical; so also in closely stocked calf rearing premises.

The European sourced has been Sold in Europe for 50 years, the antibacterial disinfectant has a formulation adjusted to cope with changes in disease type and profiles in crowded environments. Stalosan F is said to be registered with the US Environmental Protection Agency (EPA) as an antimicrobial-disinfectant agent.

Core ingredients are phosphates, clays, minerals and oils that keep it inert in contact with animal bedding and dung. The minerals within it bind to the surface of bacteria, virus and parasites, effectively drying out their cells, ending their life cycle.

The action and the results contrast with liquid disinfectants, says Agrivantage. It remains active in contact with organic matter, compared to standard disinfectants that lose effectiveness as new animals enter the pen area.

Typically, calf rearers would begin the season, before populating pens with calves, by spraying out the area with an anti-viral/disinfectant agent then applying a dusting of Stalosan F. “Then it is a case of simply reapplying Stalosan about once a week at a rate of 50g/m2. Rearing 300 calves would require about five bags throughout the season for effective disease control.”

The product reduces ammonia smells due to its ability to bind with ammonia in calf waste, making for a more pleasant and healthier environment, Agrivantage says. www.agrivantage.co.nz

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DAIRY NEWS JULY 8, 2014

MACHINERY & PRODUCTS // 57

Wireless drench gun knows the right dose GARETH GILLATT garethg@ruralnews.co.nz

ANIMAL WEIGHT data from an electronic scale goes by WiFi to a new electronic drench gun, determining the dosage for the animal in question.

Developer Te Pari Products expects the gun to be on sale early 2015, says director Patrick Blampied.

Believed to be a world first, the gun eliminates overdosing and underdosing animals.

Blampied says farmers could save up to $1 an

animal by using the gun.

“As soon as you pull the trigger the correct amount will come out.”

The gun also records total number of doses and can send information back to the scales allowing farmers to keep easy electronic drenching records.

The unit’s batteries will last 2000 shots before needing to be recharged.

While it is yet to be used in the field, Blampied says researchers have accurately simulated normal working conditions. “One of the most important parts of the design stipulation was that it needed to be robust.”

Operators will be able to use the gun up to 10m from the weigh station, Te Pari says.

The gun competed in the Waikato field days inventor’s competition where it won the grassroots innovation award for

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Talks with electronic scale manufacturers suggest the gun will be made compatible with a range of weighscale makers’ products.

Tel. 0800 837 274 www.tepari.com

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pumping device says a Brazilian company – managed by a Kiwi – that makes such equipment.

This gear enables a community to turn its citizens’ utility vehicles into an effective fire-fighting fleet “in minutes,” says Kevin Smith, the New Zealand-born chief executive.

The company, Guarany, designed and released the units in 2005, seeing a gap in the market. It had been selling 20L backpack fire-fighting appliances, then saw scope for an appliance able to pump 5000-8000L. The forestry industry was an obvious market, Smith says, “but many of our export customers are using them in a variety of ways”.

“They are also used to deliver emergency water supplies to farm livestock in remote areas.

“But the original fire fighting purpose creates most demand. The first 20 minutes of a fire outbreak is the most crucial time for getting it under control and one of these units can deliver water to a fire face for about 15 minutes.”

The units are most effective when pumping a water and foam mix.

A 4-stroke Honda engine with a small pump (M-35) provides water at 300psi along a 30m hose, or even a 90m hose without loss of water pressure.

Smith says the units can hold 400L or 700L in flexible bladders filled when loaded onto a vehicle.

The company launched a rigid water storage unit during the 2014 Expo Forest show in Brazil.

Guarany makes fire fighting products sold in 60 countries.

Patrick Blampied shows off the new electronic drench gun.

Offers available until 31 July 2014 or while stocks last. Only available at Fieldays or participating Suzuki dealers. Prices are recommended retail excluding GST, savings shown include GST. Offer not available in conjunction with any other promotions.

DAIRY NEWS JULY 8, 2014

58 // MACHINERY & PRODUCTS

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

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Indian truck surprises where it counts ADAM FRICKER

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hold name in its home country of India but is less well known here.

Their tractors have been in the local market for a few years; their road vehicles arrived this year and have had a high pro-

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file at all the agricultural field days.

Dairy News spent a few days trying out the single cab Mahindra Pik Up (yes, that’s how you spell it) that one lucky reader of Dairy News or Rural News will drive away in a few weeks, and was genuinely surprised at how civilised it was on the road.

The mHawk turbo diesel 4-cylinder makes a modest 88kW of power from its 2.2L capacity but the 280Nm of torque is what counts. That twist makes for effortless driving in any gear, while the Bosch common rail system gives respectable economy (9.1L/100km claimed).

Noise levels are better than some Japanese diesel engines we’ve tested and even though the relatively low final gearing kept the engine busy at 100km/h it was more than bearable on a long journey. Similarly, the interior comfort was a surprise and for

Mahindra Pik Up single cab. Below right: Modern interior and well appointed.

about $30,000 you get a good sound system, cruise control, power mirrors, adjustable steering and great seats. The plastics were a bit hard, but it’s a work truck.

The comfort theme extends to the ride and handling. Don’t get us wrong, a leaf sprung truck

with 1.25 tonne bed capacity and 2.5 tonne towing capacity is going to move around a bit when unladen. However, it was much better than the likes of a Land Rover Defender, especially up front where independent, torsion bar suspension resides. No solid axle here with all the

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attendant handling problems such a set-up brings.

The ride is very good and the steering accurate.

Again, we did not expect this.

We had little chance to get off-road, but did enough to confirm that the low range gearing and diff lock do the job and that the rotary switch makes changing between two and four wheel drive a breeze.

Our initial prejudices about the Mahindra were all dispelled. It is sol-

idly built. Actually, we did expect that – they make tractors, after all. But it is also civilised and capable and it is well appointed for the price, has a three year warranty and has a dealer network to back up the product.

Also available as 2WD, single or double cab, the Pik Up is tough enough for India’s back roads and is finding favour in the Australian mining industry. www.mahindraauto. co.nz

Serious about keeping on top of mastitis with your teat spray?

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Super Clean packs are designed for periodic descales or removing milkstone deposits.

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NZAgbiz SupaCalf™ Calf Milk Replacer 20 kg

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Gusto 20% and 16% Textured Calf Feed 25 kg

Premium curding Calf Milk Replacer with essential vitamins and minerals.

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Made with quality nutritional milk powders and contains Actigen® to combat Salmonella and E Coli.

Designed for young calves, Gusto textured calf feeds are high quality, highly palatable feeds, developed by dairy nutritionists to provide essential nutrients for growth and rumen development.

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Some products may not be available in all stores but may be ordered on request. Prices do not include delivery, delivery costs are additional. Images are for illustrative purposes only.

Freephone 0800 10 22 76

www.pggwrightson.co.nz

Helping grow the country