Dairy News 14 October 2014

Fonterra says peak milk flow under control. PAGE 3

HANDING OVER THE REINS

Wilson to step down PAGE 34

PRESSED TO PERFECTION

Compacting silage to size PAGE 62 OCTOBER 14, 2014 ISSUE 322 // www.dairynews.co.nz

2013-14 R U O N O H F O L L RO

Tatua 2. Miraka 3. Fonterra y r t n u o C n e p 4. O 5. Synlait d 6. Westlan

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DAIRY NEWS OCTOBER 14, 2014

NEWS // 3

No repeat of buttermilk stink PAM TIPA pamelat@ruralnews.co.nz

FONTERRA IS confident there won’t be a repeat Super farm starts production.

PGS. 22-23

Conquering hill country.

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Feed train that don’t collide.

PG. 58

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south,” he says.

“The new Longburn reverse osmosis plant near Palmerston North, which came online in September, removes up to half of our milk’s volume before we

of last year’s dumping issues at the height of the season’s peak milk flow.

While still in the middle of this year’s peak milk season, Fonterra is confident the steps it took to deal with peak flow and avoid last year’s dumping issues are working well.

The co-op is moving about 2m L of milk a day from the North Island to the South Island – double its previous consignments due to the new Longburn, Manawatu, reverse osmosis plant reducing the milk volume by 50%.

Milk production is up 5% so far this year according to the latest Global Dairy Update from Fonterra.

Last season the cooperative dumped about 3m L of buttlermilk in Taranaki. Robert Spurway The stench resulted in charges against Fonterra and the South Taranaki District Council transport it across Cook Strait. This allows us to of breaching the RMA. In another case, formal warnings from the move twice the amount of Waikato Regional Council were handed out for milk – about 2m L of raw breaching the RMA to three parties involved milk each day – to sites (including Fonterra) in the creation of a buttermilk in the South Island well Fonterra’s buttermilk lake near Tau po caused a stench last year. lake on a South Waikato farm in October last year. placed to process it.

“Moving the milk to plants in the South Island preference is for this to be used as stock food at Fonterra says the new Longburn reverse osmosis plant near Palmerston North is one aspect of also gives us [more options], allowing us to create piggeries and calf rearers’.”

Earlier in the season Spurway said Fonterra the products that deliver the greatest value to our the plan to cope with peak milk flow. had 50 nationwide projects aimed at optimising “We are confident we are tracking well, with farmers.”

Fonterra has at least 500 tankers operating collection, processing, transport and manufaccollection and processing keeping pace with high volumes,” Robert Spurway, Fonterra’s managing nationally and is making about 10,000 tanker pick- turing. These included Longburn and a recently ups a day from farms – about one every nine sec- completed UHT plant at Waitoa, and a new drier director global operations, told Dairy News. at Pahiatua now being built, each raising capacity Part of the peak plan is to make best use of any onds.

Spurway says while the cooperative’s aim is to manage peak volumes and optimise the use of spare capacity by moving milk between sites, says to process every drop of milk it collects, a small Fonterra’s existing plants.

Spurway.

Fonterra also intends to build a drier at “With colder climates and slower grass growth amount of by-product disposal is a normal part of Lichfield, South Waikato, and will install three meaning the South Island’s peak occurs slightly dairy processing.

“Where we need to dispose of by-product, our new plants at Edendale, Southland, costing $555m. later in the season, that capacity is typically in the

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DAIRY NEWS OCTOBER 14, 2014

4 // NEWS

Weather could have the final say PETER BURKE peterb@ruralnews.co.nz

through or whether production goes down again.”

The present situation stems from a number of different factors in the international market, she says.

“We’ve had very good production

THE WEATHER in the big dairying countries may chiefly determine how long the present oversupply of dairy products lasts – and the crimped prices payable to New Zealand dairy farmers.

DairyNZ’s general manager policy and advocacy Kimberly Crewther says it’s a guessing game how the present crisis will be resolved. Geo-politics will be a factor, but global weather may well determine how much milk is produced and where.

“It isn’t usual for every country to have good weather at the same time, so a more normal weather year will help the rebalancing of dairy product stocks. Certainly the Kimberly Crewther weather conditions globally in the next year will determine how years in most countries that export much additional production comes dairy produce. Europe’s production is

up five per cent, a significant volume given that Europe is the largest dairy producer. The US is also up and New Zealand had a good production trend this year, so there’s a lot of additional product in the market.”

The stockpile of dairy products in China and food bans

by Russia all have contributed to the present situation. Dairy products produced in Europe that normally go to Russia have entered the world market and it will take time for such stocks to be re-balanced, she says.

New Zealand farmers are being well informed what steps to take given the low pay-out forecast: workshops are being run by DairyNZ, dairy companies and banks.

Because the low pay-out is following good seasons, farmers will have financial buffer. And notwithstanding the present crisis, the long term demand for dairy products is good.

Foote at LIC’s door LIC WILL next week

appoint professional company director Abigail (Abby) Foote to its board.

Foote will replace Jason Dale who retires from the board after a sixyear stint; she has been nominated by the LIC board and needs ratification from its shareholders at the annual meeting in Hamilton on October 22.

Foote is a director and chair of the audit and risk committees of Z Energy Ltd, BNZ Life Insurance Ltd and the New Zealand Local Government Funding Agency and is a director of Transpower New Zealand.

Recommending Foote to shareholders, LIC’s board says she has “a strong analytical and strategic focus, coupled with a critical awareness of corporate governance and risk management”.

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“With qualifications in law and accounting, Abby’s career has straddled both disciplines, focusing on corporate finance and commercial transactions.

“She has a breadth of experience in mergers and acquisitions, treasury and structured finance

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transactions, telecommunications, management of large projects and strategic development and implementation.”

If elected, Foote will chair LIC’s audit, finance and risk committee.

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DAIRY NEWS OCTOBER 14, 2014

NEWS // 5

Tatua tops payout table andrews@ruralnews.co.nz

DESPITE THE dive in global dairy markets it’s a fair bet if you meet a farmer from within Tatua’s catchment he or she will have a smile on their face.

And so they should after the eastern Waikato minnow left for dead its larger co-op cousins, not to mention corporate competitors, in the washup of 2013-14 season payouts.

In its 100th year Tatua achieved group operating revenue of $266 million and earnings before tax of $136.4m, a record result.

Before retentions and tax that’s $10.32/kgMS for the 13.2m kgMS supplied, of which $9/kgMS has been paid to its 109 suppliers with $1.32 retained.

“This retention will ensure the company retains the financial strength necessary to invest in new plant and equipment to support its strategy of growing its specialised added value business,” it said announcing the result at the end of last month.

Now it is building a $65.5m specialised powder plant, “a significant project… that will define Tatua for many years. The dryer

is on time and on budget for commissioning in April 2015.”

The stellar result has cut the company’s gearing ratio (debt divided by debt plus equity) from 28% to 25%.

The result overshadowed Fonterra’s $8.40/ kgMS announcement a week earlier, and it’s the second time in a row Tatua has stolen the giant’s thunder, Tatua having paid $7.40/kgMS after a $1.17/ kgMS retention from 201213, compared to Fonterra’s $6.16/kgMS including dividend but after 14c/kgMS retention.

Miraka, the Taupo Maori dairy company will make a final payout to its suppliers for the past season of $8.50/kgMS, 10c higher than Fonterra in line with its policy of paying a premium of 10c on the co-op’s price.

Chief executive Richard Wyeth told Dairy News their suppliers are very happy about this news.

“We had a good year and whole milk prices were obviously up at record highs for most of last year so our strategy to build a whole milk powder plant helped to deliver a good result for our shareholders.”

But the coming season is more challenging, he says. They see the market

remaining relatively soft and while the lower dollar will help, it takes time for this to be reflected in any payout.

While it is company policy to pay 10c above the Fonterra price, they are looking at a range of $5.00-$5.40 for this season. They see more downsides than upsides, Wyeth says. Miraka’s view is that the final price will be lower than $5.40.

Open Country Dairy is believed to have its suppliers on average $8.41/ kgMS. However, the company refused to disclose the final payout and told Dairy News to wait until its annual report is released.

While Westland Dairy Products was within cooee of Fonterra last year, at $6.04/kgMS after a 30c/ kgMS retention, this year it was a different story, dishing out just $7.57/ kgMS due to skimmed milk powder dominating

PUMPS

its product mix.

Announcing the result Westland chief executive Rod Quin acknowledged it didn’t meet Westland’s goal of providing superior returns to shareholders but said a strategic move away from commodities started in 2012 with its first nutritional products plant at Hokitika and a larger, $102m nutritionals plant will be commissioned at the start of next season. A $40m investment in a UHT plant at Rolleston in Canterbury, where an increasing proportion of Westland’s supply is coming from, has also been approved.

Fonterra also reiterated its investments in new facilities when it made its results announcement, citing the $235m expansion at Pahiatua, a $555m drier to be build at the cheese-only plant Lichfield, and three additional plants at Eden-

STIRRERS

Tatua says its record payout allows it to retain capital to invest in new plant and equipment.

dale. A $126m UHT plant’s going in at Waitoa, $72m is going to expand Clandeboye’s mozzarella lines and $32m is going into Eltham.

Chief executive Theo Spierings also highlighted Fonterra’s steps to build offshore supply.

“Our global partnership with leading infant food manufacturer Beingmate in China puts our high-quality dairy ingredients in a strong position to capitalise on the opportunity in China’s rapidly

PONTOONS

HYDRANTS

sales in this market.

“It is our desire, as the manufacturing company, to develop a close association with our Chinese brand owners to reassure consumers that these brands are produced from a reliable, vertically integrated company prepared to stand behind the quality of the product.

This approach has been signalled by Chinese officials as a requirement for the export of retailready infant formula to China.”

growing infant formula market with a respected local partner.”

Synlait Milk paid its suppliers an average of $8.31/kgMS with managing director John Penno also stressing China’s importance.

“China remains an important focus for us.

The disruption caused during the year by the regulatory changes is easing and we are well positioned to take advantage of improved returns from increased

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DAIRY NEWS OCTOBER 14, 2014

6 // NEWS

Syndicate forecasts payout to return

Qld farmers can’t bridge supply gap STEPHEN COOKE

FARM INVESTMENT

company MyFarm says its newest farming syndicate Hokonui Pastoral Ltd Partnership will remain profitable despite Fonterra’s lower forecast payout.

Hokonui Pastoral, Winton, Southland, milks 670 cows on 247ha.

The syndicate, launched late September, forecasts positive returns even at a milk price of $4.20/kgMS, says Andrew Watters, executive director.

Watters says milk prices have risen 4.3% annually since Fonterra’s inception, though they are now reversed. “MyFarm recognises volatility is a fact of life.”

MyFarm expects milk prices to return to the long-term average of $7/

kgMS, possibly as soon as the 2015-16 season.

“However, we understand we need to operate farming systems that give our syndicates the flexibility to respond to these short-term milk price changes as well as fluctuations in onfarm costs,” he says.

“Hokonui’s ability to graze its entire stock onfarm sets it apart from many of its neigbours in Southland and further afield. Notably, it protects the syndicate from volatility in grazing costs, which have been rising at an annual rate of 6% to 7% annually in many areas.

“Farms in good locations, and where all stock can remain onfarm, are increasingly rare; this represents a significant shift

in MyFarm’s experience of buying farms over the last twenty years.”

Hokonui is also reducing peak milking cow numbers and changing its feed crops from brassica to higher yielding fodder beet and forecasts a minimal reduction in production.

The cropping changes will allow it to increase land under pasture by 30% to 35%, while the small reduction in stock will reduce costs and improve environmental performance.

MyFarm’s 47 dairy farming syndicates across the country are making the most of pasture and reducing their reliance on grazing and supplements.

“Our syndicates are also cutting all non-essen-

Andrew Watters, MyFarm.

tial expenditure and are putting a brake on development,” says Watters.

“Debt levels, averaging less than 30% of total assets across MyFarm’s syndicates, also buffer the lower returns.

“We remain positive on the medium and longterm outlook for dairy farming.”

QUEENSLAND’S EXISTING farmers would need to double production just to meet rising demand for dairy caused by population growth in the state.

These figures were revealed by the Queensland Dairyfarmers Organisation’s outgoing chief executive Adrian Peake at the farm body’s Toowoomba conference held last month.

Peake says increased production would only be achieved through on-farm investment. However, a survey recently conducted by the QDO and unveiled at the conference revealed only 24% of respondents believed they would still be dairying in five years. There are now 471 dairy farmers in Queensland and 43% of them responded to the survey.

The survey found that only 4% said they were very confident in the future of the industry, 22% said they were confident, 37% were uncertain, and 37% were not confident.

Those farmers who indicated they were leaving nominated ‘lack of profit’

as the biggest reason, at 84%, which is 16% higher than the previous survey in January 2014. 67% of respondents said their milk cheques were less than their monthly accounts. To stay in dairying 39% want at least A60 cents/L while 43% want at least A65 c/L. Norco deputy chair Tony Wilson told the audience the co-op’s sales of branded milk were growing each month. Norco is using the concept of provenance to market its milk. “It’s growing but it’s tough work while A$1 milk remains.”

When asked by a member of the audience why Norco signed with Coles to provide milk for the Coles private label, Wilson was pragmatic.

“Retailers are here to stay, and if you want to bottle milk, you need to work with them. The Norco contract to supply Coles is a good one.”

Norco hopes to build its fresh milk exports to China to 20m L/year but Wilson says its branded ice cream exports had the potential to be bigger than its fresh milk exports. @dairy_news facebook.com/dairynews

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DAIRY NEWS OCTOBER 14, 2014

NEWS // 7

Robotics slowly on the move SUDESH KISSUN sudeskh@ruralnews.co.nz

AUTOMATIC MILKING is slowly being

embraced by farmers in Australia and New Zealand, says DeLaval regional president Oceania Richard Alderton.

While almost 50% of farmers in Europe are using robots to milk their cows, farmers here are taking a “slightly more cautious approach”, he says.

Alderton made the comments at the world’s largest robotic farm under one roof, a 1500 cow milking barn built by South Canterbury farmers Aad and Wilma van Leeu-

wen. DeLaval supplied 24 robotic machines for the farm, where milking started last month.

Alderton says there is no doubt that a “growing minority of farmers” in Oceania see robotics as a progressive step.

Rough calculations by DeLaval show that if 1% of farmers in Australasia convert to automatic milking, that would represent 1000 robotic units milking 70,000 cows.

Alderton says automatic milking systems will not be for everyone. “You have to be on the right type of farm, have the right approach and be open minded about it.”

One big question asked about robotics is whether

it saves labour; Alderton says it can. A 200-cow farm in Tasmania running three robotic machines has 0.6 labour unit. The spare labour capacity can be used for other work.

Alderton says automatic milking also provides flexibility to farmer and cow; they can both decide when and what to do. “So, if the farmer is doing other duties he doesn’t have to come back to do milking; if a cow wants to be milked, she decides when she comes for milking and she can come three times a day.”

When Alderton began work in New Zealand five years ago the comments on cow barns were “generally not positive”. But

public and industry sentiment have moved in favour of barns. “They now see barns as a solution, not a problem; barns keep cows cooler in summer and warmer in winter.”

Oceania is the largest exporter of milk and Alderton says the company will continue promoting sustainable and efficient milk production.

“Barns and robots realise the DeLaval vision: sustainable food production.”

He thanked the Van Leeuwen Dairy Group for choosing DeLaval robots for the farm.

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1500 cows will be milked under the roof in South Canterbury. Inset Richard Alderton.

milking udder preparation techniques also impressed him: a cup that cleans teats with hot water and air. “Also there’s no electronics in the arm, it’s all inside the robots.”

He operates 16 robotic

machines from rival robotic milking company Lely on his two home farms.

Having the best of both worlds will allow him to compare their performances. “DeLaval and

Lely are the two leading robot builders in the world; they are both doing a great job and it’s a perfect opportunity to see how they compare.”

• Super farm in operation pages 22-23.

RIDING OUT THE STORM THE DROP in milk payout is another storm farmers will just have to weather, says Aad van Leeuwen.

“It is a worry because our income is going down the gurgler but we are used to the ups and

downs of the industry.

We knew it was coming so we have to ride it until it comes good again.”

Van Leeuwen, South Island’s biggest dairy farmer, says he does not regret spending about $22 million on the

robotic farm.

He operates 12 other farms, milking a total of 12,000 cows. Most of the milk goes to Oceania Dairy in South Canterbury. Fonterra gets 1m kgMS every year.

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DAIRY NEWS OCTOBER 14, 2014

FONTERRA BOARD ELECTION // 9

Voting packs to arrive soon of difference is... I attack issues from a different andrews@ruralnews.co.nz perspective.”

A couple of hours before Dairy News spoke A FAT envelope will drop to him he was weighinto your mailbox later this ing calves and while he week or early next if you’re employs a herd manager, a Fonterra shareholder. he’s still “very much” Voting packs for hands-on with the farm board elections and, in he and wife Marie-Jose four wards, shareholdbought the first part of 21 ers council positions, will be posted Friday Octoyears ago, having built up ber 17 with voting opening equity through sharemilkonline, by fax or post on ing and a property at Putathe same day at 10.30am. ruru.

With six candidates for “I think that’s an three board posiimportant part tions and only two “It’s not how many of being a direcincumbents seektor. You’ve still boards you’ve been on, ing re-election – got to underbut how you think.”

Waikato farmer stand what’s Jim van der Poel is happening on holders’ council needs to retiring after 12 years as a the farm.” operate more as an invesdirector – there’s sure to While he’s not been tor body than a watchdog be a fresh face at the top on Fonterra’s shareholder and a disconnect with sup- council, he says he’s hardly table by the close of the annual meeting at Palmer- pliers needs healing. Fonmissed a meeting and is a terra’s objectives must ston North. networker for the coopalign with those of farmer One more name has erative. shareholders. “I don’t come forward since Dairy Pre-Fonterra he see that at the moment.

News in August revealed served on a regional There’s a bit of a misthree candidates standco-op committee, the match.” ing alongside incumindustry group looking It was other director bents seeking re-election into formation of candidates’ comments John Monaghan and Globalco, and chaired a about global relevance David MacLeod (Dairy cooperative principles and strategy in Dairy News subcommittee in New News, August 26), that of that “as much as anything” Zealand Dairy Group’s Garry Reymer, a handson farmer of 87ha and 290 swayed his decision to put shareholder council. his name forward for the cows at Cambridge.

Asked if he’s looking “The key issue for Fon- board. forward to the 11 venue “It’s not how many terra is to make sure we candidate roadshow, boards you’ve been on, but Reymer says: “very much get the fundamentals in how you think,” he says, New Zealand right and so. There are a heap of acknowledging that in remain a co-op,” he told things I want to discuss comparison to some canDairy News. with shareholders.” didates his governance “It’s not the strategy The roadshows start in experience is light, though Invercargill, 7pm, Tues– that’s important but he has had several off-farm day October 28 and work senior management has board positions. “My point their way north to finish at a good handle on that – ANDREW SWALLOW

what we should be talking about is... what supports that strategy inside our borders here in New Zealand because if we don’t get that right we won’t have Fonterra in 10 years time, or at least, not as a farmer-owned cooperative.”

But if that sounds like anti-TAF rhetoric, it’s not. “TAF’s great,” says Reymer. “But the job’s only half done. We need to complete the job.”

TAF means the share-

Whangerei and Pukekohe on Tuesday November 4.

Voting closes 10.30am Monday November 10 with results announced later that day ahead of the annual meeting on the 12th.

Garry Reymer

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DAIRY NEWS OCTOBER 14, 2014

10 // FONTERRA BOARD ELECTION

Early entries all through CAP ANDREW SWALLOW andrews@ruralnews.co.nz

THE CANDIDATE

assessment panel (CAP) process hasn’t caused any of the three early entries in the board elections to withdraw.

All are names likely to be known to many Dairy News readers through their various roles and/ or previous dealings with the rural media on industry issues.

MyFarm director Grant Rowan says he’ll bring a “commitment to the success of Fonterra and making it the dairy cooperative, milk processor and marketer of choice for all New Zealand dairy farmers.

“I am a straight shooter and independent thinker,” he told Dairy News. “I have a strong understanding of dairying and a life-long involvement in the dairy industry, having worked my way up the dairy farming ladder from farm management and share milking to farm ownership. I also have all the competencies required of a Fonterra director.”

Asked what he sees as the key issue for Fonterra, he says it’s demonstrating “the compelling long-term benefits that flow from remaining a strong and united cooperative.

“Fonterra must execute its strategy lever-

aging its strengths and growing returns and value for shareholders. It also needs to clearly communicate the long-term benefits that come from broad farmer participation in the cooperative. Fonterra needs to win and retain farmer loyalty through excellent performance and a shared vision in the face of growing competition for milk supply.”

South Canterbury multiple farm business owner and operator Leonie Guiney says she’d give Fonterra’s board an “absolute commitment to, and understanding of the true comparative advantages that have contributed to genuine wealth creation for NZ dairy farmers.

“That starts with ensuring we enhance, or avoid inadvertently [eroding], the pathways that allow young energetic people to grow equity from milking cows,” she told Dairy News.

“Continuing to attract these entrepreneurs with the work ethic and the skill to farm the peaks and troughs of the commodity cycles to our industry, and to our Fonterra, is key to our future success.”

She and husband Keiran have certainly shown their ability to farm through peaks and troughs, having built up a four milking-platform, five farm business in just over a decade, winning

Gray Baldwin

various awards along the way. Most recently they landed the Best Low Input System title in the 2014 Dairy Business of the Year competition, with a return on capital of 7.2% and the lowest cost of production of all entrants at $2.86/ kgMS. “A big issue for Fonterra is clarity on what business we are in, a business that will continue to deliver to the NZ farmer and consequently NZ for the long-term.”

Gray Baldwin is also an award winning farmer, having won the Supreme Award in the Waikato Ballance Farm Environment Awards 2009, but he’s probably better known for his roles as a director of LIC, Ballance Agri-Nutrients, agri-technology company Regen and Trinity Lands.

Leonie Guiney

“When I narrowly missed election to the Fonterra board in 2011 I resolved to improve my governance skills…. During the past three years I have strengthened this skill,” he writes in his candidate profile. “My election to the

Grant Rowan

LIC board in 2012 gave me a second set of valuable insights into how successful farmer-owned companies are governed.”

If elected he says he’ll reduce his directorships to fully commit to Fonterra.

“I believe, above all

else, we need a relentless focus on delivering a high milk price. Maintaining this focus is also my commitment to you.”

Incumbent directors David McLeod, who also chairs Taranaki Regional Council and is a director

of PKW Farms, and John Monaghan, a director of Wellington’s Centre Port and trustee of Wairarapa Irrigation and the Eketahuna Charitable Trusts, are seeking re-election, making it a six-way race for three seats.

SHAREHOLDERS COUNCIL POLL ELECTIONS FOR the Fonterra shareholders’ council are required in four wards: Central Northland, where Penny Smart and Alex Wright are candidates; Piako (Andrew McGiven and Malcolm Piggott); Eastern Bay of Plenty (Corrie Smit, Gerard van Beek, Wilson James); and Northern Manawatu (Katherine Gillespie and Ellen Bartlett).

There was one nomination received in each of the other 18 wards, so no election will be held in these wards with coun-

cillors-elect formally taking office at the annual meeting.

Councillors elect are: Northern Northland, Terence Brocx; Southern Northland, Tracey Bryan; Hauraki/ Coromandel, Julie Pirie; Matamata, Grant Wills; Western Bay of Plenty, Murray Linton; Rotorua, Matt Pepper; Taupo, Phil Butler; Central Taranaki, Noel Caskey; Wairarapa, Philip Palmer; North Canterbury, Shaun Lissington; Rakaia, Angela

Ward; Ashburton, Charles Whitehead; South Canterbury, John Gregan; Waitaki, Greg Kirkwood; Otago, Ad Bekkers; Northern Southland, Ivan Lines; Southern Southland, Emma Hammond; Western Southland, Vaughan Templeton.

There’s no election required for the directors’ remuneration committee, as shareholders Murray Holdaway and Philip Wilson have been elected unopposed.

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DAIRY NEWS OCTOBER 14, 2014

NEWS // 13 DairyNZ chairman John Luxton.

Next season tough, long-term prospects still strong – DairyNZ ANDREW SWALLOW andrews@ruralnews.co.nz

DAIRY NZ chairman John Luxton has highlighted the regional economic benefit of dairying ahead of the levy body’s annual meeting which will be held in Timaru later this week.

“Last season the payout was the highest on record and farmers in South Canterbury increased their milk production by 7% to 90m kgMS, yielding $700 million dollars in milk production revenue for the area.”

Nearly half that “circulates in a community” through farm working expenses on the likes of feed, seed, fertiliser, animal health, staff and maintenance, and there are 1900 people employed in dairying in the region.

“That’s 7.4% of regional employment, not including all the selfemployed farm owners and sharemilkers running dairy farm businesses locally.”

Fonterra’s Clandeboye factory has over 800 staff alone, and pro-

in the afternoon.

Luxton says next season will be a tough one for farmers everywhere because of forecast lower milk prices.

“But the long term prospects are still strong for dairying, and we have an industry strategy for delivering another $3.7 billion of additional export earnings to the New Zealand economy by 2020.

“We want to make dairy farming work for everyone so a lot of our focus at DairyNZ is on helping farmers with how to farm profitably but with a lower environmental footprint.”

The environmental aspect is “a pretty topical issue” in Canterbury as the region’s Land and Water Plan rolls out catchment zone by catchment zone.

“We’ve been reviewing all the technical work to understand the implications for dairy farmers so we can give them good advice,” says Luxton.

“Everyone needs dairying to remain competitive, but we know that we also need to farm responsibly and focus on reducing our environmental impact.”

cesses up to 13.2m L/day, at least 40% of Fonterra’s South Island collections, adds Luxton. Oceania’s recently commissioned factory at Glenavy, in the extreme south of the region, also shows the confidence in dairying.

“The construction and running of this plant will provide considerable economic benefit for the region and it will employ about 70 people at peak production.”

It is the first time the annual meeting, which alternates between islands, has been held in South Canterbury.

Results of the five-way director election (Dairy News, September 9) to replace Barbara Kuriger on the board will be announced at the meeting which starts 11am Thursday October 16, Grosvenor Hotel, Cains Terrace, Timaru.

The board and senior management will visit contrasting local farms the day after the meeting: John Gregan’s dryland operation at the foot of the Hunter Hills near Waimate, south of Timaru, and Alvin Reid’s irrigated and automated robotic milking farm at Pleasant Point, north of the town,

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FIVE-WAY BATTLE FOR BOARD SEAT THE FIVE candidates for Dairy NZ’s board are: Murray Jamieson, Okaihau, Northland; Greg Maughan, Marton, Rangitikei; Dirk Sieling, Whitianga, Coromandel; Donna Smit, Whakatane, Bay of Plenty; and Jim van der Poel, Ohaupo, Waikato.

Voting closes noon Wednesday 15th October.

Barbara Kuriger had been on the DairyNZ board since 2007 but stood down to run

in the general election for the National Party in the TaranakiKing Country electorate, where she is now the MP. DairyNZ chairman John Luxton and fellow farmerelected director Alister Body have also been on the board since 2007, coming in with the transitional board that oversaw the merger of Dexcel and Dairy Insight.

The other incumbent farm-

er-elected directors, Michael Spaans and Ben Allomes, were first elected in 2008 and 2011 respectively.

The normal term for a farmer elected director is four years.

Allomes, Luxton and Spaans retire by rotation next year, and Body’s term ends 2017.

Dairy NZ has three directors appointed by the board: Helen Anderson, Barry Harris and Peter Schuyt.

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DAIRY NEWS OCTOBER 14, 2014

14 // NEWS

Industry needs better-trained staff PETER BURKE peterb@ruralnews.co.nz

THE NEWLY elected chairman of Federated Farmers Dairy section in Hawkes Bay, Nick Dawson says, the dairy industry suffers from a shortage of well trained staff.

As dairy farms get larger and with time at a premium, many new staff are not getting quality on-the-job training they need, so many are effectively becoming human robots on farms.

The issue is a big one for New Zealand.

People coming into the sector need good skills and need to be ready for work when they arrive onfarm.

“A lot of people are going with foreign workers which I don’t think is bad, but I’d like to see a few more put

up their hands for this work. New Zealanders have to knuckle down a bit: some think they’re going to get $45,000 or $50,000 from day one, but they need skills training first and qualifications.

On some bigger farms the personal touch is being lost with less time spent on teaching individual workers how to run a farm.”

Dawson says he took on the role as chairman because he wanted a new challenge off-farm and because the previous chairman retired.

The big issue for his region is water, especially the proposed Ruataniwha dam project. Milk production is increasing in the region due to conversions and increased production on existing farms.

Many farmers there have been stunned by the low payout for the

coming season, not expecting this to happen so quickly and go so low.

But there’s no need for a knee-jerk reaction. “If you take the last four years the average payout has been $6.50 which is what the banks have been working on and it’s not been a bad average. We had been warned enough about volatility so we should all be prepared for it. The message is to farm sensibly and don’t go out and spend money you haven’t got for unnecessary items.”

Dawson says farmers who have entered the industry recently and have high debt and no reserves to call on will have difficulties but others who have been around for a while should have some fat. He’ll look at his budget to see what cuts he can make.

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The couple, who own two farms at Berwick, Taieri Plains, have been CRV Ambreed clients for 16 years.

This is their second year of using the pre-mating heat detectors, silver business card-sized patches that stick to the cows’ rumps and change colour with heats.

McLennan says win the ‘icing on the cake’ of heat detector use. “We’ve been impressed with the reliability and accuracy of the system – a big improvement on what we were previously using.”

CRV product manager Angela Ryan says some farmers are worried the patch might come off during mounting, “but they don’t.

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DAIRY NEWS OCTOBER 14, 2014

NEWS // 15

Cabinet changes bring new faces to sector PETER BURKE peterb@ruralnews.co.nz

PRIME MINISTER

John Key has rung changes in the wider ‘agriculture’ sector with his new cabinet line-up.

Predictably Nathan Guy has held on to primary industries and Jo Goodhew remains his associate outside of cabinet. But Goodhew has picked up the food safety portfolio with Nikki Kaye moving on to ACC. In a major move, Amy Adams has moved onto the front bench and been

given the justice portfolio following the ousting of Judith Collins after scandals pre-election.

The promotion of Adams has enabled Dr Nick Smith to get his old job back as Minister for the Environment which he lost to Adams as a result of ‘problems’ in his role as ACC minister.

Also directly impacting the wider farming sector is the appointment of Louise Upston as Minister for Land Information outside cabinet.

That role includes responsibility for the Overseas Investment

Office (OIO) which decides on foreigners buying – or not buying – New Zealand land. Right now it has before it a bid

by Shangahi Pengxin to buy Lochinver Station.

Also important is

Maggie Barry, appointed Minister of Conservation, responsible for the Department of Conservation and Fish & Game.

She takes over this role from Nick Smith who had a testy relationship with

Fish & Game.

Other appointments likely to affect farming include Te Ururoa Flavell as Minister of Maori Development and Chris Finlayson as Associate Minister.

Maggie Barry is the new Minister for Conservation.

BARRY GREEN-FINGERS THE APPOINTMENT of Maggie Barry to cabinet had been flagged by commentators in the leadup to the announcement last week.

Outside of parliament she is known for her television gardening shows, but in her broadcasting days she was an astute presenter of Morning Report.

Since entering parliament as the MP for North Shore, Barry has chaired of the local government and environment select committees, and worked on the education and science select committee. She has also been the chair of the ‘bluegreens caucus’ – the National Party’s advisory group on conservation and environmental issues.

She also has the rare honour of having a rose named after her by the internationally renowned rose breeder Sam McCready. Barry was awarded the Order of NZ Merit for services to broadcasting in 1996.

The next three years will be no bed of roses with the conservation portfolio. She is likely to be caught up in the RMA reforms which is high on National’s agenda.

EDS welcome appointments THE ENVIRONMENTAL Defence Society has welcomed the appointment of Dr Nick Smith and Maggie Barry to cabinet, as ministers for the environment and conservation respectively. It says both are experienced and come out of National’s ‘bluegreen stable’.

EDS chairman Gary Taylor says Smith has held the environment portfolio before and Barry has chaired the environment and local government select committee.

“Dr Smith, as the new Minister for the Environment will have a busy three years,” Taylor says.

“Apart from the environmental reforms already in train, there would be merit in revisiting the role and functions of his ministry. On most indicators, New Zealand’s environmental quality is deteriorating and a fix is urgently needed and that might require a fresh look at the effectiveness of the ministry.

"Now it's time to sit back and relax..."

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THE LELY ASTRONAUT ROBOTIC MILKING SYSTEM HAS TAKEN ALL THE PRESSURE OFF! Graham Barlow is remaining at the forefront of the dairy industry with his latest project - the installation of 4 Lely Astronaut A4 robots in February earlier this year.

He was born and bred on his Gordonton farm in the Waikato, and is currently milking 310 cows through the Lely Astronaut robotic milking system.

After seeing Lely robots in action on another local Waikato farm, Graham decided to pursue options for his farm. "I chose Lely due to the high level of service back-up and the machine itself".

Previously, Graham was milking through an existing herringbone shed, and as no resource consent was required for a new shed, he filled in the pit and installed the robots on top.

start until 7.30am in the morning and have less workers on the farm saving in labour costs".

The Lely robots are set up with an ABC grazing system & feed pad, where fresh grass is available three times in a 24hr period, improving the well-being of the cow. "The robots work brilliantly in a grazing situation" he adds.

The Barlow's are also kept well informed about the herd and milk performance with the Lely T4C management system. "I love the data coming off T4C, from cellcount, to milk production, to knowing definitely if the cows are on heat or not, it's fantastic" says Graham.

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DAIRY NEWS OCTOBER 14, 2014

NEWS // 17

‘Agriculture is in my blood’ PETER BURKE peterb@ruralnews.co.nz

BEEFING UP biosecu-

rity and helping to secure improved market access are priorities for Nathan Guy as he resumes his role as Minister for Primary Industries in the newly elected National government.

Guy got his old job in a week that saw some changes in portfolios affecting the primary sector. Guy told Dairy News he was delighted to get a call from the Prime Minister saying he was in cabinet again.

“I’m looking forward to my role as I have a lot of unfinished business to deal with. Agriculture is in my blood and I will keep working hard for this huge part of the New Zealand economy.”

Acknowledging it will be tougher for dairy farmers this season with the lower payout, he says they will get through it and the grass will continue to grow. They are extremely resilient, he says.

“They’ve been through droughts, snowstorms and floods. They’ve had a fantastic season despite strong headwinds including the high US dollar.

Last season’s $8.40 payout

by Fonterra was a fantastic result and some of that money is still flowing through into this season.

Farmers would have known from their history that the payout is volatile…. The 15-year average is $5.25. Dairy farmers know it will be tough and they will work closely with their banks and accountants on line-by-line review of their cashflows and budgets.”

Central government can help dairy farmers by pressing for more free trade agreements, Guy says, and he intends to work with Trade Minister Tim Groser to remove trade obstacles and secure more FTAs. Such agreements offer huge potential for dairy and red meat.

“I will work with the new Minister for the Environment, Dr Nick Smith, on RMA reform which is a big part of our economic growth. We need to manage our economic growth in conjunction with our environmental

obligations.

“I will work with the Nick Smith on acquiring [but not compulsorily] sensitive parcels of land to do with protecting waterways. And I’ll work with the industry on [fencing for] intensive lowland beef farms and with the dairy industry to ensure all their stuff is fenced by 2017.

“And I’ll champion water storage projects and the importance of those for rural and regional New Zealand.”

Maori economic development is another of Guy’s priorities, linked to

Nathan Guy is back as the Minister for Primary Industries.

the government’s goal of lifting the value of exports to $64 billion by 2025.

Guy says his ministry has

some “great work underway” to assist Maori trusts to lift the performance of their farms. And he wants

to work on projects to encourage the “brightest and best” young people into agriculture.

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DAIRY NEWS OCTOBER 14, 2014

18 // NEWS Fonterra farmers inside the new Farm Source Methven hub.

Connecting ‘upstream’ w SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA CHIEF

executive Theo Spierings says Farm Source will be rolled out in the co-op’s other milk pools worldwide.

The new hub connects farmers with the full

strength of the co-op, Spierings said at the launch of the Methven Farm Source launch last month.

“We’ve had all these strengths… but they were individual pockets. We had RD1 and Fencepost; now the dots are connected, making Farm Source a true business

support model.

“After we’ve done the 71 hubs here we will move offshore. Of course it will be a different constellation offshore but it will help drive our co-op from strength to strength.”

Spierings says Fonterra’s strategy is based on different milk pools. The recent joint venture formed with Chinese dairy processor Beingmate was “connecting with consumers downstream” and “Farm Source is much more upstream.

That’s the uniqueness of Fonterra; we can do strong stuff like this upstream and downstream and connect with farmer and consumers in the end.”

Spierings says New Zealand remains Fonterra’s number-one milk pool, expected to yield 22 billion L of milk annually by 2025. It wants to grow its milk pool to 30b L, 8b L from overseas milk pools.

Farm Source will be used offshore “but every milk pool will have its own dynamics. It’s not a programme or a collection of benefits.

Farm Source is to connect farmers with the full strength of our cooperative.

“Ultimately, we see Farm Source setting the benchmark in supporting farmers and providing exclusive benefits beyond the milk price. Farm Source is an enabler for Fonterra’s volume and value strategy because it is all about the milk.

By supporting farmers to succeed and grow, the cooperative will also grow its milk pool in New Zealand which is core to the business.”

Meanwhile cashstrapped Fonterra farmers will not be forking out extra money for the rebranding of the co-op’s rural services.

Co-op chairman John Wilson says it’s acutely aware of strained cashflows on farm caused

OR F G N I T H G I P F HT IS DONE. O T S R E V E THEY’LL NBEET UNTIL THE FIG FODDER

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EVEN MORE HELP ONLINE TECHNOLOGY WILL be prominent in Farm Source, and the co-op has overhauled its Fencepost site.

“Nearly 90% of our farmers are online daily, checking milk quality and production information, and the milk production app we launched earlier this year has at least 5000 users,” says Fonterra.

“We’ve completely revamped what’s available to farmers digitally…. including access to all farming information, advice, information and support, shopping for farm supplies, exclusive deals and seeing rewards growing via their mobile.”

The new Farm Source online is a big upgrade, seen on mobile, computer or tablet.

Farmers can still access all statistics on production and quality via the farm business homepage, plus comparison reports, statements and nitrogen reports, the milk payment estimator and Fonterra financial information such as advance rates.

They can also link to trade Fonterra shares and to access financial information such as global dairy updates, presentations and market announcements.

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DAIRY NEWS OCTOBER 14, 2014

NEWS // 19

m’ with farmers Fonterra milk tankers got a new livery as part of Farm Source launch.

by this season’s low milk payout.

A small group of suppliers last month took to social media to vent their frustration at the costly refurbishment at a time when most farmers are reeling from lower milk prices.

But Wilson told Dairy News the change of livery at its former RD1 stores will be part of “the normal refurbishment that goes on”.

The co-op last week launched its first Farm Source hub in Methven.

Its subsidiary RD1 is now called Farm Source and its 67 stores will be turned into hubs over the next two years.

Wilson says Fonterra is building four new Farm Source stores; the Methven hub is the first.

“Each of the three new stores will be a Farm Source hub with new livery; the other stores will be upgraded as part of normal refurbishment.

“Ultimately, we see Farm Source setting the benchmark in supporting farmers and providing exclusive benefits beyond the milk price.

Farm Source is an enabler for Fonterra’s volume and value strategy because it is all about the milk.”

– Theo Spierings “All stores have started offering Farm Source loyalty cards and discounts but most farmers will still be walking into orange stores for some time.”

While exclusive discounts at Farm Source could draw more suppliers to the co-op, it is about much more than just milk supply. “This is about the collective power of the co-op,” says Wilson.

Farm Source has been on the board’s agenda for many years, Wilson says.

“We have talked to

our farmers a lot about what we can do to further support them and their businesses. We challenged ourselves to come up with ways we could get in behind them as only a co-operative of our strength can do.

“Co-ops have always been for unity and collective strength….

[We aim] to work for our farmers so we all benefit.

With Farm Source we are taking our relationship with our farmers to a whole new level through connected services and support systems.”

WAYS TO GROW FARM, BUY SHARES FARM SOURCE is intended to help young and growing farmers lift milk production along with easing the burden of buying Fonterra shares to match production.

The offer includes: Dividend reinvestment: receive shares in lieu of all or part of cash dividends. This helps avoid borrowing to buy shares, ‘painlessly’ increasing shareholding towards minimum required shareholding.

Share-up over time: allows farmers to spread their share buying over three-ten years. This can help reduce the need for lump sum borrowing to buy shares, smoothing cashflow.

Invest as you earn: shareholding increases over time as some of each milk payment goes into

shares each month. Shares are bought on behalf of the farmer whose account is credited with an average share price over time.

Equity partners’ fund: Fonterra intends to consult on establishing such a fund for long-term equity for farmers in New Zealand and Australia. Investors would put in the cash to fund farmers to grow production and manage volatility, and meet environmental and other requirements. The fund would be set up only if it could meet these objectives and enable farmers to retain control.

Guaranteed milk price: enables farmers to lock in a price for a percentage of their milk, giving certainty about a portion of income and helping ‘robust’ budgeting and financing.

3599 Metabolizer halfpg vert.ind1 1

9/11/08 9:20:42 AM

DAIRY NEWS OCTOBER 14, 2014

20 // NEWS

Fonterra portrays flight from city to the farm SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA SAYS its new Farm Source branding is intended to position the co-op as being ‘in’ rural communities – and ‘out’ of Auckland.

Launched last month, the Methven Farm Source hub previews rebranding of the co-op’s 67 RD1 stores. Four new stores are on the drawing board, others will be done over the next two years.

Fonterra tankers are also getting new livery.

The Methven hub sells rural supplies at retail and has a drop-in lounge for farmers, meeting rooms

and a ‘home base’ for Fonterra’s regional onfarm support team.

Speaking at the launch, Fonterra chairman John Wilson said Farm Source is not just for farmers but for “the whole community, giving opportunity when someone wants to get together. For example, when shareholders’ councillors want to meet with their area managers and farmers they can meet at hub and have a decent cup of coffee.”

Wilson says Fonterra has been keen to “bring Fonterra out of Auckland and into the rural communities.” The Methven launch is the tip of the iceberg, “marking

the start of a long progression.”

“We’ve been talking to our farmers a lot about how to further support them and their businesses.

We challenged ourselves to come up with ways to get in behind them as only a cooperative of our strength can do… to work for our farmers so we all benefit. Farm Source… [offers farmers] connected services and support systems developed for them.”

All Fonterra farmers will receive a Farm Source Rewards card giving automatic access to loyalty rewards and exclusive discounts.

It will be available

next month, with reward dollars redeemable from December 1, says Farm Source managing director Jason Minkhorst. “This has been a massive project.

The hubs [offer] a reward scheme for farmers: they will be rewarded when they support Farm Source.”

Fonterra farmers mingle inside the first Farm Source hub in Methven.

Farmers will earn Farm Source Dollars for each dollar they spend with Farm Source and its partners. The ‘dollars’ will

be redeemable anytime from December for their farm business, family or community. Farm Source Dollars can be converted

to Farm Source store vouchers, products or services including travel. @dairy_news facebook.com/dairynews

PEOPLE IN THE KNOW ABOUT LOCALS EVERY FARMING region is different, so Farm Source will provide farmers more ‘streamlined’ support from people ‘in the know’, says Fonterra.

People who understand the peculiarities of each local region – its council regulations,

business leaders and climate conditions – will be available at the hubs.

“We’re strengthening our regional networks, increasing our regional knowledge and creating stronger links between all our people who work with our farm-

ers including store staff, tanker operators, service centre, area managers, sustainable dairying advisors, technical sales reps, the vat assets team, food safety advisors and local networkers and shareholders council members,” the co-op says.

DAIRY NEWS OCTOBER 14, 2014

NEWS // 21

Swede toxicity queries keep coming ANDREW SWALLOW andrews@ruralnews.co.nz

COULD SOUTHLAND’S swede

syndrome be a symptom of wider animal health issues associated with use of herbicides on feed, a retired vet from Waikato is asking.

“From the symptoms I’ve been told about, it sounds very much like chronic botulism,” Frank Rowson told Dairy News.

Research in the US and Europe, notably Germany*, shows botulism in cattle could be associated with use of glyphosate-treated feed, he explains.

The affected cattle in Southland could well have been consuming such feed as well as the swedes, which in the case of the HT types would probably have had a couple of applications of the herbicide Telar (chlorsulfuron), he says.

What’s more, the paddocks would likely have been sprayed with glyphosate prior to sowing and residues of that herbicide would inevitably

questions are “among a number” sparked by the Southland swede issue from people with experience of animal liver damage in a range of situations.

Analyses to be done on crop samples, both HT and non HT, and where there and were not problems, are still being determined, he says, but the proposed methodology will allow herbicide concentrations in the crops to be determined.

“This is a comprehensive study that encompasses physical factors, such as soil analysis and swede crop location, and management factors, such as fertiliser history, pest and disease control, duration of feeding swedes and mix of feed offered to cows,” McBeth told Dairy News.

“Until all these data are collected and analysed, it is premature to speculate on any one cause or a narrow base of potential causes. As results come available, DairyNZ will share these with farmers and the industry stakeholders, such as MPI and the NZ Veterinary

its label, it will not leave residues of concern.” * Various papers by Monika Krüger of the Univeristy of Leipzig, and others, on laboratory work showing glyphosate acts as an antibiotic on beneficial microbes , allowing harmful bacteria such as clostridium botulinum to establish, and hypothesising the effect could

account for rising incidence of botulism in cattle and other species. Other work shows glyphosate residues are found in urine and tissues samples from a range of animal species, including humans, the health impact of which needs investigating. @dairy_news facebook.com/dairynews

Frank Rowson

Craig McBeth

Imagine a milking system you grow into not out of

“From the symptoms I’ve been told about, it sounds very much like chronic botulism.”

be consumed by the cattle through ingestion of soil.

Rowson maintains that, despite the toxicity data on product labels, the final formulations of the herbicides including the various solvents, spreading, wetting or penetration agents, haven’t been adequately tested. Nor have the resulting feeds.

“It all fits the picture and [herbicide use] is probably involved. How much, we don’t know.”

Rowson hit the headlines in rural media last year when he linked Fonterra’s botulism scare to glyphosate use, though the debate on the issue was side-tracked when his credentials as a vet were challenged, owing to his having retired.

Dairy NZ’s general manager extension, Craig McBeth, says Rowson’s

Association.”

A review of reputable published scientific studies related to the problem is also underway and McBeth says depending on the findings of this, a farmer survey, and the sample analyses, there may be a need to design and do further research into the issue.

As for whether Dairy NZ is concerned about increasing consumption of feed pre-treated with glyphosate and/or other herbicides such as chlorsulfuron, he says the advice from Dairy NZ’s science team is that “the evidence shows that it is highly unlikely the cattle deaths are related to the herbicide chlorsulfuron.

“Chlorsulfuron has undergone a robust risk assessment by MPI which has concluded that, when used in accordance with

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DAIRY NEWS OCTOBER 14, 2014

22 // NEWS

300% production jump when robots h SUDESH KISSUN sudeshk@ruralnews.co.nz

THE WORLD’S largest robotic dairy farm under one roof has swung into operation in South Canterbury.

Owned by the South Island’s largest dairy operation -- the Van Leeuwen

Dairy Group -- the farm at Makikihi will eventually house 1500 cows milked day and night by 24 DeLaval robots. The barn is 193m long, 67m wide and 12m high.

On September 25, owners Aad and Wilma van Leeuwen began milking 750 cows with 12 DeLaval robots, using one half

W E’ VE

of the shed; contactors are installing the remaining 12 robots and full production is expected by Christmas.

The van Leeuwens will invest close to $22 million: $8.5m for the land, $4.2m for the robots and $5m for the barn. On the property they have also built three new houses, two effluent tanks – one for undi-

luted effluent and one for diluted effluent as well as concrete feed bunkers that can store 4.5m kgDM. They have also installed a grain feeding system to the robots and will concrete the surrounds of the barn. A 46 cubic metre diet feeder mixer wagon and tractor have also been purchased. A lot of develop-

Aad and Wilma van Leeuwen are South Island’s largest farmers.

ment work is being carried out on the farm including fencing off all streams and planting them out as well as installing some wetlands.

Van Leeuwen agrees it’s a massive investment but points out that they recently sold a farm in the area for close to 80% of what has been invested in the new property. That farm produced 450,000kgMS annually.

On the new farm milk production is expected to top 800kgMS/cow within five years or 1,200,000 kgms.

“In this farm production will be up three times when fully up and running,” he told Dairy News..

“I may be spending a bit extra here but it gives you an idea of what you can achieve inside compared to outdoors.”

The barn will be set up in two halves – an

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early lactation side and a late lactation side. Cows coming in will spend 100140 milking days in the early lactation side; the length of stay will depend on when they calve and milk yield.

“Then they go to the other side – the late lactation side – and from there eventually get dried off again and go outside in the paddock for two months where they calve and come back.”

The van Leeuwens are no strangers to robotic

LAND, COSTS POINT TO ROBOTS AAD AND Wilma van Leeuwen first embraced robotic milking barns in 2008-09.

The drive was to keep cows from getting knocked down by nasty weather, he says.

“We wanted to look after our cows better.

The herds were getting bigger so we decided to build a barn.”

The plan was then to retire but they changed their minds.

“We realised you can have a large herd under a roof as long as you manage it properly [otherwise] things can fall apart quickly.

You’ve got to have the right skills and the right people to manage it 24 hours a day.”

Van Leeuwen says a lot of farmers are interested in his type of farming; the home robotic farm has had about 3000 visitors in five years.

“It can be done like this…. Maybe this is the future because land is getting more expensive; costs are going up and you have to get more efficient. I’m not saying everyone is to do this tomorrow.”

He says at last year’s high payout, returns accelerate. “We’re still sitting on the same breakeven point as everyone else but once it gets to $8 payout, things accelerate.”

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DAIRY NEWS OCTOBER 14, 2014

NEWS // 23

s hit full stride milking; their home farm runs two free-stall barns, both 500-cow facilities built in 2009. They run 12,000 cows on 13 operations and own a contracting company as well as being self contained with regards to dairy support land.

Van Leeuwen is confident of reaching his target milk production of 800kgMS/cow in five years. “The cows on the home farm are doing 750kgMS/cow; we are expecting this to rise to 800kgMS plus so there’s no reason why we can’t do it here.”

To achieve that the cows will need to grow in size; the van Leeuwens plan to mate the herd with Holstein Friesians and calve year-round.

However, there is no rush to “push the limits”.

“The aim is not to push it to the limits you see

in Europe and America, where they are pushing to 12,000L/cow/day…. That puts a lot of pressure on your herd. Our goal is to focus on milk solids and do it in a sustainable way.”

This will also help the cows live longer. Van Leeuwen says it depends on how hard you push the cows and how much you focus on litres. “Our strategy is to focus on milk solids and the average age of herd should come up.”

Sustainable farming is a feature of the barn; the farm uses no fertiliser.

Instead, effluent is recycled onto paddocks.

“What comes out gets recycled… the nitrogen, phosphorus and potassium are there,” says van Leeuwen. “You know what’s in a tonne of effluent so you can work out effluent irrigation accordingly; this is nothing new and has been done

The world’s largest robotic farm under one roof in South Canterbury.

in Europe, Canada and North America. But it’s new to this part of the world.”

Effluent from the barn’s laneways will be continually cleared by automatic chain-pulled scrapers, draining down into the 7m deep, 23.5m radius tank.

The aim is to use the effluent as base fertiliser for the feed crops surrounding the shed, a 28,000L slurry tanker applying it by dribble-bar or injector. “With injection we’re burying it in the soil so there’s no loss of nutrient to the air or smell to annoy the neighbours.

It’s very effective. We’ve been doing it for three years.”

The dribble-bar is used on existing grassland and lucerne.

The cows are fed mostly maize, lucerne and grass silage. A few kilos of

canola meal are thrown in every day depending on the need and pellet rations are offered in the robotic milkers.

The correct feed mix will give 2.5 times the production of conventional grass systems.

“It’s all worked out; you know what’s in your stack because the stacks are tested. You also know what the cows are requiring; we work on the basis

of 17-18% protein, 240MJ ME/cow.”

Nearly all the feed will be home-grown, cut and carried off the surrounding 600ha. The van Leeuwens grow 200ha of maize, 60 ha of grass and 370 ha of lucerne for this barn.

Another benefit of the barn and keeping animals inside is animal health.

Lameness is non-existent as cows don’t have to walk

to and from paddocks for milking.

The barn has rubber mats for cows to walk on, so there’s no moving them in and out of the barn to get them used to standing on concrete. And the cows do not slip over.

“The cows are happy inside; they don’t have to face the weather outside.

A happy cow produces lots of milk.”

Van Leeuwen notes

it is beneficial always to have staff among the cows.

“The workers are always closely associated with the cows; with the help of the robots, we can always check if any of the cows are sick.”

Since the farm is a 24/7 operation, a herd manager is on shift all the time.

And at full production van Leeuwen expects 12 fulltime staff to be working in and outside the barn.

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DAIRY NEWS OCTOBER 14, 2014

24 // NEWS An oversupplied global feed market is keeping a lid on milk production costs and boosting supply.

Long and winding road to prosperity STEVE SPENCER

INTERNATIONAL DAIRY commodity prices

have continued their fall, as increased milk supply competes for fewer and

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certainly less enthusiastic buyers.

A recent Rabobank report highlighted that the supply issue, with the big-seven exporting countries increasing output by 4.3% -- an extra 3.2bL in

the three months to July, half that increase coming from the EU. The supply response to lower commodity prices is being muted by an overheated US domestic dairy market that has softened the

impact for still less exportexposed US producers, and an oversupplied global feed market that is keeping a lid on farm production costs.

For these reasons the US and EU will take some time to slow – particularly given the ramp up of EU production ahead of quota removal in 2015. Internal consumption of milk in these northern hemisphere regions is an important factor in the global market balancing act – particularly for cheese.

New Zealand producers are seeing the full impact of the global market downturn reflected in their payouts, but given their debt levels and long-term commitment to dairy, they will continue to pump out product – seasonal conditions allowing.

On the demand side, much has been written about China holding back from the market, although trade figures continue to indicate imports are ahead of last year. It is an interesting ploy – if Chinese buyers are in fact holding back from the market to improve costs it would be understandable. They have certainly consumed a lot of product at high cost from purchases made earlier in 2014 and may now be sending signals via GDT to reduce prices. It has worked, but they have taken some time to work out that more careful messaging via the GDT could be used as a tool to manage costs.

Of course the other wildcard to hit the already weakening global dairy market has been the Russian import ban, which had the effect of turning a slowly deflating tyre into a blowout and car crash.

Whether the ban imposed by the world’s third-largest dairy importer will run its course or even be extended beyond 12 months will be an important determinant for market recovery in 2015.

Most analysts appear to agree that any recovery will not be until well into next calendar year, a view supported by Freshagenda’s dairy trade simulator analysis and summarised in last month’s Dairy News article.

But what about the longer term outlook? As current market conditions severely test the faith and finances of dairy producers around the globe, is the bright future still out there? Will there be a continuation of the historical trend line of about 3% increase in the value of milk that has prevailed for the past 20 year?

Our long term analysis suggests this is still the case. Demographic and economic factors will increase demand for dairy products more rapidly than supply. Growing Chinese demand will only partially be met by internal production expansion, while other developing dairy markets have even less chance of improving self-sufficiency. Our analysis assumes growth from most major producing regions, but all face constraints and will continue to be affected by weather from year to year.

Tetra Pak released a long term outlook earlier this month. The timing is interesting, with Tetra possibly concerned about ongoing faith and investment in dairy processing as a driver of its own business.

The Tetra analysis suggests the international dairy market will change hugely in the coming decade as it becomes truly global. They project the long-term deficit in dairy world trade as demand outstrips supply to be just under 10bL by 2024.

Our own analysis suggests the deficit will be a little smaller but still large, meaning that global prices will be on a firming trend.

We have seen no credible analysis of the long term outlook for dairy that diverges from that view.

That does not mean there won’t be volatility; the past three years have demonstrated that fact, and looking forward the factors affecting supply and demand are likely to become increasingly complex and intertwined with global input and competitor commodity markets.

• Steve Spencer is a director of Freshagenda, an Australian food and agribusiness consulting firm.

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Northland dairy farmer Richard Westlake says his Abbey mixer wagon is a “crucial” part of his production system. “I don’t know how we’d do without one now.”

He purchased the single axle Abbey Vertical Feeder (VF) 1850 with two optional side elevators around 18 months ago to service Mayflower Farms, a family-owned 600 cow town supply dairy farm at Maungaturoto.“We calve three times a year and supply local fresh milk year-round, so the wagon is in use 365 days a year. It is a great machine which evenly mixes whatever we put in, and feeds consistently over the whole bin. We know the first cow on the feed pad will get exactly the same amount of each material in the feed ration as the heifer down the other end. Richard believes feeding from the mixer wagon has also led to strong production gains.

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“We’ve noticed a big difference in our milking, with the small cows producing the same amount as the larger cows. Across the board we’ve seen a 60 kg milk solids per-cow-peryear increase in production, which goes a long way to paying back our investment in the machine.”

It was after deciding to feed minerals and molasses to his cows that Richard started looking at mixer wagons, through the local dealer and importers FARMGARD. “I went for the ABBEY because I’d used a lot of the brand’s gear when I was working as a contractor in the UK and still had friends over there who recommended it. Working with the local dealer and FARMGARD made it a quick and simple process. They are easy to deal with and looked after everything we wanted.”

Richard opted for electronic hydraulic controls and side discharge elevators on both sides of his 18 cubic metre capacity mixer wagon, to give him more feeding options.

“The variable speed on the belts means we can feed out at different speeds on each side of the wagon for different stock whether they’re on the feed pad or calving pad. Having two elevators also gives us a bit of security. If we happen to whack one of them off on a fence post, we’ve always got the other one.”

Around five tonne of feed is mixed and fed from the wagon each day – generally a large round bale of hay, combined with 3 tonnes of maize silage, 1.2 tonne of palm kernel and 350 kg molasses, plus minerals.

In 18 months, the machine has required little servicing, apart from “a bit of oil and grease”.

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DAIRY NEWS OCTOBER 14, 2014

26 // NEWS

Arla Foods gains foothold in Brazil EUROPEAN DAIRY

Arla has launched its Lurpak butter in Brazil, the world’s fourth largest dairy market.

co-op Arla Foods has set its sights on Brazil, buying 8% of the largest dairy company Vigor Alimentos S.A. Arla swapped its 50%

stake in a joint venture with Vigor for the minority stake, becoming a voting member and an observer on Vigor’s board of directors.

Head of Arla’s

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“Vigor is a leading dairy producer with a first class distribution network. We have a history of cooperation and it’s a natural step for us to further build on this partnership to explore the potential in Brazil.”

Latin America is a growth region Arla has watched for a year. Brazil is the largest market there

allows Arla to develop a new business unit within its operation, with a new commercial executive officer. The unit will market and sell imported products and brands through Vigor’s channels.

When the EU milk quotas are abolished in 2015 and milk production increases, Arla and other European international dairy companies will have to look to growth markets outside the EU, hence the lure of Brazil as a means of raising the co-op’s milk price, Arla says.

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and the world’s fourthlargest dairy market, growing 5% annually.

It has 200 million people and a growing middle class. Arla aims to accelerate its export of products to Brazil to gain market share in imported brands.

Steffen Andersen, responsible for Arla’s value markets, says Brazil is an attractive market especially for branded cheese and butter.

Lurpak is the first Arla brand to be marketed in Brazil; test results are looking promising.

“We also launched feta, brie and camembert cheese. Together with Vigor, we see a great opportunity to create leading positions for our global brands Arla, Lurpak and Castello,” Andersen says.

The deal with Vigor

venture with Vigor under the name Dan Vigor. In 2013 Dan Vigor achieved sales of $58 million.

Under the new agreement Arla will exchange the joint ownership of Dan Vigor for the 8% ownership of Vigor.

Vigor is listed on the Brazilian stock exchange and has annual revenue of $1.3 billion. It has 6000 employees and 14 factories in Brazil. It has 18 large distribution centres and 40,000 retailers in the most attractive regions. Main product categories are powdered and condensed milk (36%), dairy (36%) and spreads (14%).

Vigor is partly owned by the world’s largest food processing company, JBS SA. @dairy_news facebook.com/dairynews

2017 STRATEGY IN LINE with Arla’s 2017 strategy, its growth markets are China, Russia, Middle East and Africa, where it is spending heavily on a presence and increasing market share.

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DAIRY NEWS OCTOBER 14, 2014

28 // WORLD Australian farmers view rearing and exporting heifers as another source of income.

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STRONG PRICES and cashflow considerations have, in recent years, seen many Australian farms begin to view rearing and selling heifers for export as a good source of non-milk income.

At 92,340 head, live dairy cattle export volumes were up 6% for the 2013-14 financial year, 15% above the five-year average.

In total, 400,000 dairy cattle have been exported from Australia over the past five years, roughly equivalent to 5% of the national milking herd each year. Anecdotal evidence suggests that many farms are starting to breed and raise additional heifers specifically to sell for export, leading some to question whether this opportunity will endure, while others question the impact it may have on domestic production in the destination markets.

This makes it timely to look at the driving factors in our main markets for dairy heifers.

China was Australia’s biggest customer for dairy products in 2013-14, but has been the dominant buyer of our dairy cattle since 2008-09.

Following slow but steady growth between 2009 and 2012, domestic milk production is estimated to have fallen at least 6% between 2012 and 2013 (2.37mt) following government emphasis on quality and scale in milk production.

Requirements for standardisation and mechanisation, and a concurrent surge in feed and forage prices, saw declining profits from milk production. At the same time, beef prices were high, and as a consequence the inventory of dairy cattle shrank. Herd rebuilding and the stocking of new large scale farms saw China import Australian dairy cattle in record numbers (85% of total exports) in 2013-14.

Chinese quarantine restrictions regarding Bluetongue also influence the fact that most exported dairy

9/2/14 10:20 AM

cattle originate in Victoria (97% in 2013-14).

Other markets have different quarantine requirements and protocols, and can offer an outlet for farms that are for geographical reasons locked out of China.

One such market is Pakistan, which began importing dairy cattle from Australia in 2007-08, taking 7% of exports (6425 head) in 2013-14, making them our third largest market.

Pakistan is one of the largest producers of milk globally (36 million tonnes in 2013, mostly buffalo), and imports little dairy product from Australia.

Small subsistence farms and a lack of cold chain facilities mean consumption has traditionally been localised as yoghurt, homemade ghee or raw milk.

The government of Pakistan has provided incentives for dairy sector development since 2007. Large dairy

“In total 400,000 dairy cattle have been exported from Australia over the past five years.” development projects have been funded by international governments and aid organisations and dairy processors have spent heavily to set up cold chains in remote dairy producing areas.

These factors, coupled with a population growth rate of about 3% per annum, and a high rate of urbanisation, has seen volume sales of dairy products increase at an average annual rate of 10.3% per annum between 2008 and 2013.

Indonesia (Australia’s fifth-largest market for dairy products by volume) produces 1mt of milk annually from 630,000 dairy cows, mainly on smallholdings with an average of four cows.

The Indonesian government has a target of 50% self-sufficiency in milk production by 2020, however, it is

John Droppert

believed that only 21% of the 3.3mt of raw milk required each year is locally produced, and that the supply gap is growing. Plans have been announced in the past 18 months by domestic and foreign investors for several new dairy processing facilities, and for spending on raw milk production. For example, Indonesia’s Greenfields produces 27mL of milk annually, from 6000 cows, and the company plans to complete a second integrated farm by 2016, requiring the import of 8000 extra Holsteins from Australia.

This should help to maintain a level of demand from Indonesia for Australian dairy heifers: they were our fifth-largest market in 2013-14 and have taken 25,718 head over the past 10 years.

Evidently there is a strong appetite for domestic production growth in China, Pakistan and Indonesia, which suggests that continued demand for dairy heifers can be expected from these major buyers. Meanwhile, demand for dairy products in China and Indonesia is expected to continue growing faster than production, creating growth opportunities for Australian dairy exports, particularly due to our relatively short shipping times and low freight rates.

However, demographics make countries such as China and Indonesia target markets for all major exporters, meaning that these opportunities should not be taken for granted.

• John Droppert is an industry analyst at Dairy Australia.

DAIRY NEWS OCTOBER 14, 2014

WORLD // 29

Think profit before yield IRISH DAIRY farm-

ers have been warned to focus on profit, not production for production’s sake in the run-up to quota removal.

Speaking at Teagasc’s Winter Milk conference in Co. Wexford earlier this month, Cathal McAleer, a private agricultural consultant from Co. Tyrone, said that in Northern Ireland, where surplus quota has meant no constraint on production, many producers have made the mistake of chasing milk yield per cow in the past decade.

Output per cow has increased but they’re getting less milk from forage, grassland management’s declined and herd infer-

tility’s increased, as have inputs. McAleer said the main beneficiaries of the increased production were input suppliers, not farmers.

With the brakes coming off production in Eire with the removal of quota in April 2015, he urged the 200 or so farmers at the conference to aim to retain the maximum milk cheque, saying expanding profit is a form of farm expansion and it needn’t necessarily involve more cows.

Teagasc’s Joe Patton said winter milk producers should use the removal of milk quotas as “an opportunity to re-imagine the farm business”.

While each has

options – stay the same, switch to spring production, increase herd size or improve efficiency – economic analysis shows only by “addressing onfarm efficiency can profit and cashflow can be improved”.

He urged farmers to “take responsibility for onfarm decisions relat-

ing to feed by acquiring the necessary knowledge” as feed is the biggest cost on winter milk producing farms.

Two winter milk producers who spoke at the conference, Glenn Forde and Larry Hannon, noted the importance of having “the right cow” for the job and are focussed on

Irish farmers have been told not to rush for extra milk.

improving herd genetics to get a better calving pattern to supply their winter contracts.

Both said they’re committed to winter milk production and they’re working on improving soil fertility and grassland management skills but would like to see more clarity from processors.

GOODBYE NON CYCLERS

The Irish Dairy Board has snapped up a pizza cheese maker.

IDB secures market for products post-2015 CIDR Cattle Insert is a proactive and cost-effective solution to improve the reproductive performance of your herd. By treating your cows with CIDR, you’ll get:

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

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THE IRISH Dairy Board Cooperative has bought Spanish pizza cheese maker Luxtor SA, contracted long-term to supply cheese to its former owners Telepizza, the world’s fifth-largest pizza chain.

The IDB says the deal, via its subsidiary IDB Espana, strengthens its position as a global provider of cheese to the quick service restaurant (QSR) and food service sectors. It has made similar moves into US and UK specialised cheese supply.

It opens a fast route to market for Irish dairy products, important in view of the milk quota removal in 2015.

IDB hief executive Kevin Lane says the deal is in line with the co-op’s plans to grow its business in Southern Europe, where milk is short.

“IDB Espana trade and assets [bought from] Luxtor… will provide expert cheese solutions for the pizza sector that complement cheese technologies we’re developing in our other international businesses.

“Its location gives a trading and sales hub to service our growing Southern Europe customer base.”

Zoetis New Zealand Limited, PO Box 2094, Shortland Street, Auckland 1140, New Zealand. Tel: 0800 963 847, Fax: 0800 628 629. CIDR is a registered trade mark of InterAg. ACVM No. A4559.

DAIRY NEWS OCTOBER 14, 2014

30 // OPINION RUMINATING

EDITORIAL

Shipshape cabinet

MILKING IT...

Nice work if you can get it

HOW MUCH money should directors of an industry-good body get? DairyNZ directors get $42,000/year, plus $2200 if they’re on a subcommittee or $4400 if they chair one. The chairman gets $86,000. Then there’s a discretionary daily rate for time spent indirectly on DairyNZ business, away from family, and other costs such as hiring covering labour or additional workload on spouses. Sounds fair enough, but $750/day for ‘extraordinary or additional meetings’?

Unhappy about nappies

BAVARIAN FARMERS are angry that their famous alpine cows may have to wear nappies under European Union environmental laws.

Johann Huber, whose family has farmed on the mountain slopes of Gmund am Tegernsee for 400 years, has begun putting homemade nappies on his 18 cows to avoid falling foul of an EU fertiliser ban.

Huber says his cow Doris had behaved well when he fitted her with a nappy to prevent her dropping pats. “We have no standard nappies; they have not been developed commercially yet,” he said.

The Bavarian farm union is protesting against the EU nitrates directive which they claim has led to a ban on fertilisers, or the manure left behind by their cows, on any mountain slope with a gradient exceeding 15%.

Study of burps, farts

GASSY COWS could soon be on the same drugs as dieters, as scientists test novel ways to plug burping, farting livestock.

MPI is offering $150,000 for a year-long study into whether mixing lovastatin into the feed of cattle and sheep can help the animals reduce their gas emissions from both ends.

Lovastatin naturally occurs in fungus and rice straw but was developed by drug firms into a medication for people in the 1980s, to lower dangerously high cholesterol levels when dieting, exercise and weight reduction has failed.

Shake it, shake it, shake it

A UK woman made butter from her own breast milk then ate it.

Reddit (online) user, who goes by the name ‘WhatMichelleDoes’ spent an hour shaking breast milk drained from herself until tiny beads of butter began to form.

Michelle, who posted photographs of her butter on Imgur and Reddit, says she ate it straight without bread or salt.

“It was the sweetest, creamiest butter I have ever tasted,” she says.

EXCEPT FOR Maggie Barry getting the conservation portfolio, John Key’s allocation of portfolios relating to agriculture was predictable.

Nathan Guy was a shoe-in to retain primary industries. He has the made the job his own and performed well. He is knowledgeable and passionate and relates well to farmers. He has three challenging years ahead, especially with the lower dairy payout and issues relating to the RMA and the environment.

On that score the intellectual grunt of Amy Adams will be missed as she moves on from environment to justice; replacing disgraced Judith Collins. Adams was a good forceful minister and will be missed.

‘New’ in the environment role is the ‘old’ minister reinstated – the affable and sometimes controversial Nick Smith.

He enjoys the job and is well liked by most parties in the environment space. Smith is a member of the National Party’s ‘blue greens’, the ‘ginger’ group that focuses on environmental issues.

Also a member of that group is Barry, respected as a broadcaster and gardening guru, taking a cabinet seat ahead of a lot of other hopefuls.

She is smart, knows her own mind and won’t be bullied by single-interest groups. It’ll be interesting to see how she handles the relationship with Fish and Game; Nick Smith as conservation minister came close to blows with them in the last parliament.

With the sale of Lochinver Station pending, the spot to watch is that of Louise Upston as Minister for Land Information. She will grapple with the Overseas Investment Office which decides whether foreigners may or may not buy New Zealand land. There’s a blow-torch for you!

The other changes are minor: Jo Goodhew is back as associate to Guy and picking up food safety from Nikki Kaye.

It’s pretty much business as usual for the next three interesting years.

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

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

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DAIRY NEWS OCTOBER 14, 2014

OPINION // 31

The clock is ticking CHRIS LEWIS

THE LAST thing

pressured dairy farmers want is to have to figure out their payments for the newly introduced dairy shed water consents.

Fortunately, 82% of Waikato dairy farmers have already lodged their consents but time is running out for the remaining 18%.

practice, and the consents are a part of that process.

It is still your choice, but think 15 years down the track and ask yourself, ‘do I want to limit myself’?

Don’t make your life any harder by not applying before the end of the year.

It’s a lot of money but if you don’t do it now it could hamper your ability to increase your stocking rate or development for the next

this is how you need to do it.

The clock is ticking.

• Chris Lewis is Federated Farmers Waikato provincial president.

Time is running out for dairy shed water consent applications in Waikato.

“While some farmers don’t agree we should be paying for the consents – something Federated Farmer fought hard against – I encourage you to get them if you need them.”

While some farmers don’t agree we should be paying for the consents – something Federated Farmers fought hard against – I encourage you to get them if you need them. These consents limit dairy conversions, so if you have more than 200 cows you probably need one.

Agree with the consents or not, we are an industry that takes prides in integrity and best

15 years.

The consents cost $500-$1000 now; but after Christmas will require a proper resource consent process, publicly notified, and some catchments may already be fully allocated, costing $3000-$10,000.

Avoid the headache, do it now.

If you want to farm legally, if you are running over 15,000L of water in your shed per day for milk cooling or wash-down,

Chris Lewis

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DAIRY NEWS OCTOBER 14, 2014

32 // OPINION/LETTER Trials of an artisan cheesemaker Dear Minister of Food Safety, Events seem to have taken a turn for the worse for me, a small-production artisan cheesemaker – Cwmglyn Farmhouse Cheese.

Recently I had a letter saying unless I appointed a verifying agency before November 1 (it had to be either AsureQuality

or Eurofins) my risk management programme (RMP) would be deemed invalid because nobody was ensuring my cheese was fit for its intended purpose.

When AsureQuality did my audit in May 2013, the auditor, Dan Aubrey, said my production level did not justify the fees AsureQuality

would charge were I to appoint them.

Eurofins said much the same thing but under pressure quoted $4000 per audit, which I cannot justify. My average production of 9kg cheese per week is not enough to keep my cows or verifiers in the manner to which they have become accustomed.

I make excellent hard cheese as you know, recognised at the biggest cheese competition in the world (World Cheese Awards 2013) when Cwmglyn Traditional Farmhouse Cheese was awarded a silver award. There were 2777 entries from 34 countries. I was the only New Zealand winner.

For the past year I have tried to get the regulations amended so that artisan cheesemakers like me could have their premises and records inspected by local authority environmental health officers as in the UK. I have joined United Kingdom Specialist Cheesemakers Association (there are many more artisan cheesemakers in the UK than in NZ).

You wrote to me in August, “I have noted your concern about the costs of the system for small and artisan cheesemakers, including the costs associated with verification services, and I have asked MPI to consider policy options for verification services for these small businesses.”

Obviously this has not cut much ice with MPI. I want to continue making and selling my cheese but I can’t afford $4000 or higher fees. The World Cheese Awards 2014 organisers want me to submit another cheese this year –

to be sent shortly.

The only solution I can come up with is for AsureQuality to sponsor me so that I don’t have to pay more than, say, $800 per audit or try for something like crowd funding on TV3’s Campbell Live.

Please try to persuade MPI to be more reasonable with small-production artisan cheesemakers like myself, especially since I make traditional hard cheese, matured over several months, (which is intrinsically safe).

I understand my premises need to be inspected regularly and my laboratory test result records made available for inspection.

If environmental health officers are able to inspect restaurant kitchens why can’t they inspect tiny cheesemaking rooms as we have here at Cwmglyn Farm? These premises are not like large and complex Fonterra factories….

I have regular laboratory tests done on my cheese and raw milk and I have had no complaints about my cheese in the 11 years I have been operating.

My milking parlour is inspected regularly

by AsureQuality and the cows have regular health checks by our consulting vet.

Biddy Fraser-Davies Cwmglyn Farmhouse Cheese Eketahuna

IN BRIEF Cheese month AFTER THE success of the inaugural New Zealand Cheese Month in October 2013, organisers are doing it all again this October!

Driven by the New Zealand Specialist Cheese Association (NZSCA), New Zealand Cheese Month is to be marked throughout the country via various regional and national events, instore promotions, tastings, demos and much more.

The association says it’s the month that gives cheese-loving Kiwi’s a month-long excuse to purchase, eat and enjoy New Zealand specialty cheese.

“New Zealand Cheese Month is about celebrating our country’s delicious and diverse range of cheeses, trying new cheese, using cheese in a vast range of recipes and discovering new cheese and beverage pairings.”

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DAIRY NEWS OCTOBER 14, 2014

34 // AGRIBUSINESS

Thrill of making a difference in people’s lives PAM TIPA pamelat@ruralnews.co.nz

MICHELLE WILSON

is standing down as Dairy Women’s Network (DWN) chair, but don’t expect her to be disappearing from the dairy industry any time soon.

Her four years at the helm of the organisation also included almost a year as acting chief executive. When she took over the chair membership was 2100; it now stands at 6000.

She would like to continue in governance in the dairy industry and in the health sector, having chaired a small health board in Southland until they relocated back to the Bay of Plenty.

Meanwhile she says she is 100% focused on the DWN chair role until she hands over the reins at the October 22 annual meet-

ing to Justine Kidd, 2013 Dairy Woman of the Year, highly regarded dairy agribusiness woman and head of BEL Group.

Meanwhile Wilson is back in the cowshed, having moved back in June from a larger farm in Southland to the Bay of Plenty , where she and husband Pete have bought a small farm. “I have got back to a hands-on role because we have gone to a smaller farm with no staff.

It’s good I live it; I’ve got the best of both worlds at the moment.”

DWN’s meteoric rise in membership saw Wilson step in as acting chief executive last year and help oversee a revision of its operation, after admitting the membership growth to 5000 had caused a few “speed wobbles”. That included the appointment of De Laval New Zealand head Zelda De Villiers as fulltime chief

executive. The network has grown by another 1000 membership in the year since. It reaches into many New Zealand’s dairy farms with its regional groups, training days and website resources.

Wilson is also stepping away from the DWN board on which she had served since 2006. “The network has evolved over the last couple of years … it is another step up and it’s time for someone else to take charge.” It is also time to give other women opportunities in the governance roles the network offers, she says.

“The biggest highlight for me has been watching women in the regions grow to a new level within the regional groups and onfarm,” Wilson told Dairy News. “It is rewarding watching people develop who have done career changes or entered the dairy industry, includ-

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ing some who have married a dairy farmer and had a career before taking on a whole new career. Watching those women grow is rewarding.”

Highlights also include having worked with the management team and trustees and being surrounded by “positive professional people”.

“I never envisaged when I joined Dairy Womens Network as a regional convenor in 2004

Michelle Wilson is stepping down as DWN chair.

that I would end up on the journey I have been on and have had the opportunities I have had.”

That includes representing DWN at the International Forum for Women in Dairying con-

ference in Wisconsin and last year being invited to the APEC Women in Leadership Forum in Beijing where she represented the dairy industry, sponsored

by Fonterra.

“Those were huge high-

lights but the ultimate is still the people and seeing change behind the farmgate and knowing you’re one part of making a difference in people’s lives.” @dairy_news facebook.com/dairynews

LEADER KNOWS DAIRY AT SHED LEVEL INCOMING DWN chairwoman Justine Kidd points to the network’s significant development under Michelle Wilson’s leadership.

“Michelle has done a fantastic job of leading DWN through significant changes and challenges.

“My ambitions lie firmly in building positively on a fantastic foundation, working with the board to support the ability of DWN to sustainably deliver great outcomes for its members and the dairy industry year in and year out.”

Kidd, from Hawke’s Bay, heads the BEL Group, a private dairy farm milking 9500 cows.

She is a shareholder in Dairy CHB, now milking 1000 cows on two properties in its second year of operating, and she owns

JMK Consulting, a business leadership firm and holds several directorships.

She has been involved in many aspects of the dairy industry after graduating with a BAgSc (Hon) in 1993 then joining the Dairy Board as a consulting officer.

In 1997 she was recruited

by Dairy Research Corporation as a farm production scientist, responsible for management research on several research farms including No. 2 Dairy at Ruakura, Hamilton, and Taranaki research farms.

Kidd was involved in buying a 300-cow farm west of Huntly, developed over two years then sold to support an investment in Canterbury – Robindale Dairies Ltd – the first of the Synlait projects. After selling out of

Synlait Kidd was promoted to chief executive of Equestrian Sports NZ. While at Equestrian Sports, she entered a business partnership with her sister and brotherin-law, which saw the creation of Avance Ltd. This partnership sharemilked 240 cows and leased a neighbouring farm milking a further 150 cows in 2005-2008.

Kidd left Equestrian Sports NZ in 2007 and focused on the business of Avance which saw her return to the Hawke’s Bay when BEL Group contracted Avance to run its New Zealand dairy farms in 2008.

She is also established as a trainer/facilitator of leadership, people and performance and business strategy programmes.

DAIRY NEWS OCTOBER 14, 2014

AGRIBUSINESS // 35

New scheme to upskill women A NEW scheme will start early November in Hamilton to develop dairy women’s skills and confidence in their roles in business and their communities.

Called Pathways, it has been developed by Agri-Women’s Development Trust (AWDT) and Dairy Women’s Network (DWN). Funding is by MPI and DairyNZ and AWDT will run the scheme.

The developers ran focus groups with dairy women to discover their perceived needs to gain the confidence in their ability to influence and lead change.

Rotorua dairy farmer Chris Paterson heard about Pathways earlier this year at the DWN conference. She will take part, “hoping to gain better communication skills and an ability to motivate people to ‘have a go’,” she says. “I also want to learn how to lobby people of influence better, and feel more confident in myself as someone who can take initiative and make things happen in my community.”

Says AWDT executive director Lindy Nelson, “Talking with dairy women in the research focus groups, we found that while they faced similar issues to rural women generally, [they needed]

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a tailored, intermediate-level leadership programme specifically for them, in addition to the other programmes we offer.”

DWN has engaged AgResearch to evaluate the pilot programme. Its social scientist Neels Botha will telephone participants to ask how the sessions are going and to better understand how their skills are growing.

“It was important to us that this programme benefit dairying women, so we engaged AgResearch

to evaluate how woman develop through the programme,” says DWN chief executive Zelda de Villiers.

“As well as the skills these women will be coached in, they will leave with a goal-based action plan and the support to implement it.”

Pathways runs six months and involves two two-day learning modules, individual coaching and mentoring. Subjects include confidence in strategic thinking, conflict management and achieving personal growth to

lead change in farming businesses.

“Pathways is for dairy women stepping into bigger roles in their communities, to leave them with a sound knowledge of their strengths and an action plan as to how they will lead and influence change.”

The pilot phase will be funded by DairyNZ, starting in the North Island on November 4-5, and the South Island on 20-May 20-21. www.dwn.co.nz and info@dwn.co.nz

BoP farmer named DWN trustee DONNA SMIT, Edgecumbe, has been named a trustee of Dairy Women’s Network (DWN), effective October 22.

Smit is a director of Corona Farms Ltd, a family business she owns with her husband Corrie – five farms in Whakatane and Oamaru, milking 2300 cows.

Smit says she will aim as a trustee to support the network’s vision of becoming world leaders for women in dairying, “to allow DWN to deliver value to the dairy industry and to support and inspire New Zealand women to succeed in

the business of dairying…. It is fantastic how it provides a forum to people to learn and grow.”

Smit lauds the work of DWN chief executive Zelda De Villiers. “Zelda has some stellar credentials and ideas, so it will be fantastic to be Donna Smit part of the journey to deliver something of value to New Zealand dairy women.”

Smit and her husband owned a kiwifruit packhouse and cool-

store at Edgecumbe, which they sold in 1989. She then joined EastPack (then called Rangitaiki Fruitpackers) as the accountant. She worked there 20 years, the last 13 in an administration.

She quit full-time work at EastPack in August 2013, but has led an information systems project there part-time.

Smit will assume her trustee position after the Dairy Women’s Network’s annual meeting on October 22 in Hamilton.

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DAIRY NEWS OCTOBER 14, 2014

36 // AGRIBUSINESS Ngakuru rural primary school will now enjoy a heated pool.

Water temperature rises for rural school POOL DIPS have improved from ‘survival’ to swimming lessons for children at Ngakuru rural primary school, Bay of Plenty.

The school has gained $5000 for its ‘Operation Defrost’ – heating the pool

– first prize in Tru-Test Group’s ‘Stafix Powering Your Community’ campaign.

Winton Maternity Centre, Southland, won second prize of $3000 to upgrade its birthing unit.

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and fun before the school year ends. During summer school families and locals may use the pool.

“We are thankful to Tru-Test…. We had raised $12,000 by community events and this windfall has made the difference between getting started… and holding off for more fundraising,” GraingerAllen said.

“We’ve started work preparing our changing shed roof for the solar system and togs and towels have already been seen sneaked into school bags.”

Wayne Hurunui, TruTest Group’s area sales manager for Bay of Plenty and East Waikato handed over the big cheque at the school’s final term-three assembly.

Artwork received for LIC’s annual art competition.

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Taihape, won third prize of $2000 toward a new playcentre building.

The Stafix campaign was open to rural communities. Tru-Test Group narrowed entries to a top ten, looking for distinctly rural projects with strong community impact. Each community then had to go for votes to win a share of $10,000 for their nominated local venture.

Hazel GraingerAllen, spokesperson for Operation Defrost and a PTA member at Ngakuru School, says winning the campaign gives their project “a big green tick”.

They hope to install a solar water heater, fill the pool and warm it by mid-November so pupils have six weeks of lessons

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Food, colours top 2014 calf names CHARLOTTE AND Oliver may be the most popular baby names in New Zealand (2013), but when it comes to newborn calves it seems food and colours are flavours of the month.

Bluey, Violet, and Peanut are three of the calves entered into LIC’s annual art competition for rural kids, which encourages children to send in artwork of the calf they are rearing for Calf Club.

Acting chief executive Linda Cooper says the creativity of children who enter the competition is always impressive, and this year there appears to be a recurring theme.

“It’s always intriguing to see what the children come up with, and what they’ve named their calf.

This year it’s clear their favourite things have provided helpful inspiration for names. The creativity of the children is amazing, and we’re looking forward to receiving more.”

All artwork will be judged by LIC staff at the coop’s Hamilton head office, in three age categories (5-7, 8-10 and 11-13 years). Rural schools hosting or participating in a Calf Club event are also encouraged to enter.

Co-sponsored by Stallion Plastics Ltd, prizes include Apple iPads, calf care hampers and a Stallion calf feeder valued at $4000.

Entries close October 13. www.calfclub.co.nz @dairy_news facebook.com/dairynews

DAIRY NEWS OCTOBER 14, 2014

AGRIBUSINESS // 37

Cost cutting key to survival A RECENT survey of 26 Waikato and Bay of Plenty dairy farms showed that most farms should survive the 2014-15 season, although adjustments will be required.

The AgFirst financial survey (completed September) showed most farms recovered quickly from the 2013 drought, per hectare production reaching record levels in 201314 after an excellent winter and spring and despite another dry 2014 summer.

“A large volume of supplement made onfarm in spring and the record high milk price ($8.40/kgMS) enabled farmers to buy lots of feed to counter the region’s dry conditions,” says AgFirst’s Phil Journeaux.

“This resulted in a healthy cash surplus, farm-

“The main items farmers have targeted are bought-in supplementary feed, fertiliser and repairs and maintenance, which all increased in 2013-14.” ers using it for debt repayment, upgrading plant and machinery, paying for infrastructure (particularly effluent management), something nice for the family and/or simply to build a buffer for tougher years.”

Most farms surveyed had a zero overdraft at the start of the 2014-15 season, an advantage given rising interest rates.

Last season’s high milk prices also meant a hefty deferred payment into the 2014-15 season, which will bolster low milk prices this season. The $1.50

carried forward to this season is much higher than the usual deferred payments (see table).

Waikato farmers are expected to try to control farm working expenses in 2014-15, with an average budgeted reduction expected of about 40 cents/kg MS to $4.10/kg MS,” says Newman.

“The main items farmers have targeted are bought-in supplementary feed, fertiliser and repairs and maintenance, which all increased in 2013-14.

The Fonterra milk price at the time of the survey

SURVEY RESULTS WAIKATO/BAY OF PLENTY financial survey Most farms recovered quickly from the 2013 drought, per hectare production reaching record levels in 2013-14.

Most farms surveyed had a zero overdraft at the start of the 2014-15 season, an advantage given rising interest rates.

Last season’s high milk prices also meant a large deferred payment into the 2014-15 season, which will bolster low milk prices this season.

Phil Journeaux

was $6, although it has since dropped to $5.30/ kg MS. Newman says a quarter of Waikato farmers will struggle to meet their farm working expenses and interest payments without an injection of funds, due to the lower milk

prices this season, and this is before talk of a dry summer. Overdrafts will once again build throughout this season.

“The concern will be the 2015-16 if milk prices remain low, coupled with the reduced deferred payment of $1/kg MS.”

Left town for lifestyle, kids NEW CONVERTS to dairy-

ing, Thomas Blackett and Stacey Lepper will be the guest speakers at the 2015 Bay of Plenty Dairy Industry Awards launch.

The Whakatane contract milkers turned their backs on professional careers in engineering and science; they won the 2014 Bay of Plenty Farm Manager of the Year title and Blackett was placed third in the 2012 Bay of Plenty Dairy Trainee of the Year competition.

The couple recently featured on TV3’s Third Degree programme.

The region’s 2015 awards programme – which also includes the Bay of Plenty Sharemilker/Equity Farmer of the Year competition

as well as the farm manager and trainee contests – will launch at a special event at Julian’s Berry Farm on October 23.

The region’s other 2014 winners will also speak at the launch.

They are Brett and Natasha Grindrod, who won the sharemilker/ equity farmer title and Cameron Luxton, the trainee winner.

Blackett and Lepper say they switched careers to dairy farming for the lifestyle and for their young family. They have three boys aged five and under.

Bay of Plenty awards convenor Nadine Meade, who won the region’s 2013 Sharemilker/Equity Farmer of the Year title with husband Russell, says the aim of the launch event is to have some

fun and to inform those who could be interested in entering the awards.

“All our current winners will talk about their experiences and offer some insights and advice.

It is a great opportunity to meet other people who are similar minded, to network and to learn about the awards entry or judging process.”

Entries in the awards will be accepted from October 20 at www.dairyindustryawards.co.nz and will close on November 30.

The Awards are supported by national sponsors Westpac, DairyNZ, Ecolab, Federated Farmers, Fonterra, Honda Motorcycles NZ, LIC, Meridian Energy, Ravensdown, RD1 and Triplejump and Primary ITO.

LAUNCH DETAILS ● What: 2015 Bay of Plenty Dairy Industry Awards launch ● Where: Julian’s Berry Farm ● Time: 7pm ● More information: Nadine Meade 021 533 033 or bopdia@gmail.com

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DAIRY NEWS OCTOBER 14, 2014

38 // MANAGEMENT

Family farm sparkles in sheep, b Newly elected Federated Farmers Hawkes Bay Dairy chairman Nick Dawson sees a greater coming together of the region’s sheep and beef and dairy farmers. A ‘them and us’ attitude of former days breaking down, especially as sheep and beef farmers take on dairy grazing. Reporter Peter Burke visited Dawson last week.

DAIRYING FARMING

is a minority land use in Hawkes Bay, noted for fruit growing, wine and other commercial growing.

In the foothills and on the steeper country cattle and sheep have tended to dominate, but over time dairying has gained a foothold in some of the many valleys in the steep bush clad Kaweka Ranges.

Certainly 30 years ago the concept of grazing cows here would have created much mirth in the local pub.

Nick and Nicky Dawson’s property is 40 minutes drive west of Taradale. The drive to the farm starts off in wine country and then goes into the rolling hill country

where the Dawsons farm.

They are 40% equity partners in two side-byside dairy farms – one essentially a twice a day (TAD) operation and the other, on steeper country, a once a day (OAD) farm.

Originally from Christchurch, Dawson worked as a musterer on a sheep station before heading to Lincoln University for an agricultural commerce degree. He worked on a sheep and beef farm in Wairarapa then decided his only route to farm ownership was dairying.

He moved to Taranaki and two share-milking jobs, then he and Nicky to Hawkes Bay as 50/50 sharemilkers on one their two farms. They then

bought into the business.

Two years ago they and their equity partner bought a bull beef finishing farm next door and converted in to dairying.

While the two farms are run separately there is some mixing. For example about 70 of the 430 cows on the TAD farm ‘Glenelg’ are milked OAD. Also all the cows are calved on this farm and milked there TAD just prior to mating when they are moved to the OAD block called ‘Cascades’. On that block, long and steep, they milk 440 cows OAD. The herd on the TAD farm are Friesians, the cows on the OAD crossbreds, lower producers and the heifers.

Nick Dawson and son Ben on the farm.

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DAIRY NEWS OCTOBER 14, 2014

MANAGEMENT // 39

, beef stronghold Both properties are about 180ha effective and Nick has two run-off blocks which combined give him a further 360ha for running heifers, growing and grass silage.

“The reason for going OAD on the second farm was because it is steep country and 6km long and we wanted to reduce the impact on the cows.

It also reduces labour costs. Interestingly we have not had any lameness problems with the OAD herd but have had some with the TAD herd. I suspect this may be because they are older cows. We also haven’t had any mastitis problems with the OAD herd.”

The OAD has a new 40-aside herringbone shed. The cows on entry are offered grain meal for extra energy after their long walk.

“In technology we run a basic system, deliberately, because with so many staff you’d spend too much time explaining technical things.

“A lot of technical things people put in their sheds are not in use two years later because technology keeps on changing. We measure pasture by eye but have a pasture meter plate which we use to calibrate our visual assessment from time to time and frankly we are not far off the ballpark. We use apps off the phone which works well for us,” he says.

The TAD shed is an older 36-aside herringbone.

The TAD farm is now producing 200,000kgMS/

year and the OAD farm 150,000kgMS,which Dawson is pleased with.

He operates on a system three and grows grass silage on the farm. As part of his re-grassing scheme he also puts about 30ha of turnips but uses little or no PKE. While the hills where Dawsons farm may look imposing, the Hawkes Bay climate is kind. “We get on average 1250mls of rain but it can be up to 1500mls. We can get dry in summer which is typical of Hawkes Bay. This is not a traditional dairy area but there is a lot of flat land and if you have that and water you have a tremendous dairying area.

We get surprisingly mild winters and not a lot of frosts. This year we have had a brilliant winter for calving but a changeable spring.”

Dawson has three fulltime staff and their respective partners do some farm work. They are effectively part of his family and are treated as such. Reasonable hours and time off are part of this. The nearest superette is 40 minutes drive away so good housing and conditions and treating them with respect are essential for staff retention.

“Dairy farming is a tough job with long days and early mornings. It’s important that staff enjoy the farm atmosphere. I get annoyed when some farmers say they won’t allow kids on the farm.

Why bring your kids to the farm when they can’t go on it. Some people hide

behind health and safety.”

On his farms staff are allowed pets, keep some pigs and chooks and have all the enjoyable elements of country living.

His son Ben (16) has a small flock of Suffolk sheep and has other interests on the farm. Wife Nicky is a teacher and

works off-farm but feeds calves and helps with milking.

The Dawsons enjoy their beautiful surroundings. They make time to take a farm walk to see the snow-capped Kawekas, the deer and pheasants and other creatures besides cows.

The farm runs a ‘basic technology system’, says Nick Dawson.

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DAIRY NEWS OCTOBER 14, 2014

40 // MANAGEMENT

Smaller farm ticks all boxes LOUISE HANLON

Noldy Rust with daughters Carmen and Hayley.

NOLDY AND Bev Rust, who own 56ha milking 200 cows near Te Pahu, in

Waikato, don’t see endless growth as essential to farming.

Their primary goals, and the keys to their success, are a healthy business

and a fulfilling life.

You don’t need a large business to be successful, Rust says. Profit and lifestyle matter and “a smaller farm meets our lifestyle and financial goals. The farm has to generate enough profit to do what we want, but we also need enough spare time to do other things and be involved in our community.”

Rust is not unambitious. He likes to push the limits of what his business can do and watches for new opportunities. He says, “if you don’t challenge yourself you go stale”.

This attitude has been the driver of onfarm changes.

He has intensified his system, building a feedpad

they are trying to, and are, achieving.”

Rust recalls an unexpected reward.

Speaking at the first SMASH gathering he told the DairyNZ Farmers’ Forum that getting “waylaid” health-wise was a problem if nobody else was there to milk the cows. “At the time I needed shoulder surgery and wondered who was going to milk the cows.

That night the phone rang and one of the guys who had been at the event said if I needed someone to milk, his son had just left uni and was looking for a job for six months.”

He then stepped out of the day-to-day running of the farm and considered other options, leading to a

“The farm has to generate enough profit to do what we want, but we also need enough spare time to do other things and be involved in our community.” and buying a maize block to secure his feed supply, and lifted per cow production from 380kgMS to 450kgMS. He also supports others in the industry, by employing young staff onfarm and helping them advance their career, and by his involvement in SMASH. SMASH is a farmerrun initiative supporting smaller herd farmers, and Rust is its chairperson.

SMASH is important to the industry, he insists. “I used to get sick of reading about large farms…. There are a lot of us smaller farmers and we are still fulfilling our goals, reaching our targets and having a good life.

“It was exciting getting involved in SMASH to mingle, share success stories and issues, network and benefit from relationships.

“I get a lot of satisfaction out of seeing these guys achieving their goals, trying new ideas and looking to the future, and giving them pride in what

job as an area manager for Pioneer brand products.

“I had always wondered ‘where to from here?’ I didn’t want to farm till I got sick of it. So I thought, ‘I am still loving it [but] now is the time to step back and enjoy it from a different perspective, and let someone young… step up.”

Now his farm manager Bernard Kelly is starting his third season on the Rust farm and he also has benefitted from the SMASH connection, Rust says.

“Bernard is an expat Irishman heading towards farm ownership. He needed management experience and a stepping stone so the job suited him. At the end of this season he will take a 50:50 job which we helped him get through our SMASH contacts. Now we’re looking for someone else to do it again with.” www.smallerherds.co.nz • Louise Hanlon is a SMASH committee member. @dairy_news facebook.com/dairynews

DAIRY NEWS OCTOBER 14, 2014

MANAGEMENT // 41

Honorary doctorate for veteran

Upskilling one strategy to cope with lower payout

LONG-TIME LEADER in the dairy industry, Sir

FARMERS’

Dryden Thomas Spring, will receive the University of Waikato’s most prestigious award later this month.

The former chairman of New Zealand Dairy Board will receive a Honorary Doctorate at the on October 22.

University of Waikato ViceChancellor Professor Roy Crawford says the honour is in recognition of Spring’s substantial contribution to Dryden Spring the regional and national economy.

“Sir Dryden is a remarkable man who has worked for and with many of New Zealand’s most important organisations. He continues to work hard for his community and has proved himself a worthy recipient of the title of Honorary Doctor at the University of Waikato.”

He was born in the Taranaki town of Waitara and bought his first farm at Walton, in the heart of the Waikato.

By then, he had already been elected as president of the New Zealand Sharemilkers Association and in 1972 he became president of Waikato Federated Farmers.

The following year, at the age of 33, he was elected as a director of the New Zealand Dairy Group.

caused by the drop in Fonterra’s forecast milk solid payout are best tackled head-on with agribusiness management training, says Primary ITO, which offers courses in this discipline.

The need is urgent to review and revise budgets and monitor cashflow to ensure debt levels don’t rise unnecessarily. Spending cuts, increasing milk production and generally improving onfarm performance are among the options.

Primary ITO’s Diploma in Agribusiness Management supports farmers in honing their business management skills to manage risks like a volatile payout and take control of their business.

Key subjects include business and finance, where students learn to develop and monitor financial plans, monitor on-farm performance against objectives, and develop a budget to share with

PROBLEMS their bank manager

or accountant, are all directly applicable to the farmer’s own business.

Cath Blake, manager of Dairy Training Ltd, says cashflow budget development and implementation are vital. “The skills farmers gain by completing the Diploma in Agribusiness assist in managing financial Mark Paine, DairyNZ. risk…. This financial capability helps farmers to look to the goals of the costs cut.

Mark Paine, DairyNZ strategy business and gives long term confiand investment leader (people and dence in the dairy industry.”

Staff costs can also be a point of business) says recruiting the right contention when budgets are tight- staff and keeping staff motivated ened. Staff may be let go or profes- can mean staff turnover is reduced. sional development and training “The cost of staff turnover to

the dairy industry is about $300 million per year. If we can hold onto our good staff, this can lead to better business performance.”

The Diploma in Agribusiness Management includes human resource management as a key subject, and supports farmers’ staff development.

Farmers learn how better to recruit, select and induct staff, and build good working relationships and assess performance.

The Agribusiness Diploma is a collaborative project between Primary ITO, DairyNZ, Beef and Lamb New Zealand and HortNZ. Studies are open to farmers, growers and agribusiness operators. www.primaryito.ac.nz/diploma

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DAIRY NEWS OCTOBER 14, 2014

MANAGEMENT // 43

Pit your pasture against the rest of the field HAVE YOU got the best pasture in Waikato and

Bay of Plenty?

Entries are now open for the pasture renewal persistence competition run by the DairyNZ-led Pasture Improvement Leadership Group.

Competition organiser and DairyNZ farm systems specialist Chris Glassey says consecutive summer droughts in 2013 and 2014 were a serious challenge for pastures.

Despite this pastures have generally recovered well. This may have involved some extra expense and careful management so we can’t downplay the stress that drought is bringing to pastures and pasture managers, he says.

“We’re keen to discover what farmers did to manage their pasture and pasture renewal so well during the past two years.”

Farmers can enter in two categories: best Waikato/BOP first year pasture sown this year and best Waikato/BOP pasture sown more than three years ago (2011). Prizes are two $1500 pasture renewal packages, from Agriseeds, Agricom and Farmlands.

The pasture renewal persistence competition is an initiative of the Pasture Improvement Leadership Group, a DairyNZ-led industry group including researchers, the seed industry, farmers and agricultural contractors, formed to develop better tools, resources and advice for farmers.

The search is on for the best pasture in Waikato/Bay of Plenty.

“The competition is part of the group’s role of ensuring farmers receive consistent, timely messages on pasture persistence and renewal from throughout the industry,” says Glassey.

Judging will involve a short interview about the soil fertility and the paddock’s history prior to and since re-sowing. Management practices such as grazing management, endophyte selection, weed control and nitrogen use will be discussed.

“We will also be looking for any other information that will help build a picture of the best management practice required for persistence of renewed pastures in this environment,” says Glassey.

Entries are open until November 25; judging will be in December. Winners’ field days will be held early February 2015.

Tel. 0800 324 7969 www.dairynz.co.nz/pasture-comp.

Show to focus on health, safety THE CANTERBURY A&P Show will have a strong focus on health and safety, says new president Richard Parkes.

Parkes, a partner at Christchurch law firm Cavell Leitch, has been appointed president of Canterbury A&P Association.

He is urging farmers to continue to assess and improve their health and safety practices and is leading by example by implementing new initiatives and policies for the Canterbury.

Parkes sees a new focus on health and safety after the Pike River disaster and Canterbury earthquakes. This has resulted in WorkSafe New Zealand as a regulator, enforcer and resource for farmers.

“Farmers know they need to consider more carefully good health and safety practices on their farms. In the past there was a real ‘she’ll be right’ attitude, however in recent times this has been changing. Increased health and safety publicity, new legislation planned and farmers becoming

the workplace death more sophisticated and injury toll in New in their practices Zealand.” have resulted in Parkes is believed many farmers to be the first lawyer developing good and non-farmer to plans to isolate, hold the top position understand and at the Canterbury prevent on-farm Richard Parkes A&P Association, and risks. has been eager to lend “Just because certain methods have been his expertise to ensure the used in the past, doesn’t mean association’s health and safety farmers should continue using plans are up to scratch.

“In particular we have a them. Farmers should be encouraged to look for ways to blanket rule that helmets must improve and find safer, more be worn at all times on quads…. effective methods to do their Specific guidelines for quad best practice have now been work.”

Parkes notes already there published following consultais encouraging engagement tion, so it’s important that the via WorkSafe consultation with urban and rural communities farmers and employees in the see the association sticking to dairy industry over guidelines and promoting these practices on health and safety issues in during the show.”

Parkes said that the associvarious areas.

“We expect the number ation has this year decided to of workplace fatalities, seri- increase St John’s ambulance ous harm injuries and work- presence during the show, related disease and illness will made a robust earthquake plan steadily decline and have confi- and plans to run educational dence the agricultural industry days for volunteers who drive will play a large part in achiev- forklifts during the setup for ing a 25% reduction by 2020 of the show.

DAIRY NEWS OCTOBER 14, 2014

44 // MANAGEMENT

Alert for needle grass Map redrawn from Bourdôt GW, Lamoureaux SL, Kriticos DJ, Watt MS, Brown M 2010. Current and potential distributions of Nassella neesiana (Chilean needle grass) in Australia and New Zealand. 17th Australasian Weeds Conference. Pp. 424–427.

LOOK OUT for Chilean needle grass, is advice offered rural New Zealand following an awareness campaign in winter.

Nearly 400 biosecurity signs sent to farms in tandem with a Facebook project (www.facebook. com/chileanneedlegrass) highlighted what Chilean

needle grass looks like.

Now the needle ‘grassers’ are about to send an updated seed identification card and brochures recommending safe biosecurity practices to prevent this exotic pest spreading further.

Chilean needle grass has been found on about

3700ha in Hawke’s Bay, Marlborough and Canterbury. It could infest 15m ha if landowners and visitors don’t act to contain it.

The grass shows up in late spring and early summer, flowering with reddishpurple seed heads with tails up to 7cm long.

Spokeswoman Jenna

Taylor says landowners, rural contractors and visitors to farms should keep a close watch.

In Hawke’s Bay, Chilean needle grass has been newly found on 24 properties in the past two years; mostly landowners or their neighbours identify it. Now 127 properties in the region have infestations, says Darin Underhill, Hawke’s Bay Regional Council.

“Most are lifestyle blocks, and sheep and beef, but the pest has also been found on a dairy farms, two vineyards, a golf course and an apple orchard.”

Most affected properties are in five areas close to one badly-infested property. But the grass has turned up on some isolated properties.

“We’re managing each property individually and working with new landowners to educate them.”

In Marlborough 142 properties have the grass, says Jono Underwood, Marlborough District Council, resulting in a “real push” by council staff and the community. The council is behind a community group to stamp the grass out. Its spokesman Warwick Lissaman refers to a long-term strategy to stop it spreading. “Part of that policy is the recognition by landowners who don’t have it, that they could easily get it.”

A voluntary landowners’ farm hygiene plan asks landowners to assess the risk of Chilean needle grass on their properties and to follow protocols to manage the risk of spread.

Weather ‘far from average’ STEVE HOWARTH

LOOKING BACK over winter the weather has been far from ‘average’, but has spring arrived?

For most of the East Coast and Northland, June and July was a dream run.

Temperatures were mild and stock were in good condition and growing with Steve Howarth plenty of feed.

Farmax clients in Northland, Gisborne and Hawke’s Bay in July had pasture covers 100-300kgDM/ha higher than the previous year. But early July brought widespread flooding and strong winds to Northland – up to 500mm rain in parts of the region in a single week. The East Coast also had a cold snap in August knocking down soil temperatures, pasture growth and stock performance.

Typically, over July and August pasture covers are close to bottoming out towards balance date (when pasture growth exceeds animal demand) as the spring flush takes off. Over this period pasture covers generally hold steady.

Because of the floods and cold-snap, Farmax customers found that pasture covers dropped a further 100kgDM/ha which put more pressure on at a key time of the year when feeding levels are already tight.

What does the mixed winter mean for farms now?

Comparing feed levels for August with the same time last winter, farmers in Northland generally have more feed than a year ago. Gisborne and Hawke’s Bay are faring similarly to last winter.

Looking toward spring, NIWA is predicting the chances of El Nino developing “appear to be lessening” and the likelihood of higher-than-usual temperatures August to October “is above average”.

Soil temperatures across Northland and Hawke’s Bay are sitting above 9oC, so expect to see pasture growth kicking in soon. www.farmax.co.nz

• Steve Howarth is Farmax’s senior technical specialist.

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DAIRY NEWS OCTOBER 14, 2014

46 // ANIMAL HEALTH

Wide range in calf mortality – survey ANDREW SWALLOW andrews@ruralnews.co.nz

A SURVEY prompted by lack of

data on calf deaths in the New Zealand dairy industry has found there’s a huge range in mortality.

The debate on euthanasia of calves following the Chilean clubbing footage prompted Manawatu researcher Dr Lucy Waldron to look into the death toll on farms here. She found there’s a dearth of data, not just on euthanasia but also on losses in general, so did her own poll.

While only 10 farms responded, even in that limited sample total losses ranged from 1% of calves intended to be reared, to 31%, averaging 7.4%. The survey also found a wide range in approach to farm biosecurity.

“It shows it’s a bit hit and miss, what people are doing,” Waldron, of LWT Animal Nutrition, told Dairy News. “A lot are effectively leaving it to chance. They wash-out and disin-

fect before the calves arrive and then the animals was up to $19,000/farm. they have to take their chances from “In a low payout year like this can you afford that?” there.”

Only four respondents put a cost Only one had wheel-baths for vehion losses other than cles and fewer than half the animal itself, ranghad systems for ensuring from $100 to $1000 ing rearers’ clothes were in total, but Waldron clean. suggests that given the “Milk tankers may time and effort involved be cleaned at the facin nurturing sick calves tory but they often go those additional costs to more than one farm are probably a gross on a collection round, underestimate. and there are numerous Lucy Waldon “Calf rearing should other vehicles that go from farm to farm, potentially carry- be one of the most important activiing infectious agents that can sweep ties on a dairy farm and I don’t think it gets the focus it deserves on many through a calf shed.”

Even vehicles which don’t go from farms. Partly it’s because of shortage farm to farm pose a threat due to con- of labour but also it’s about farmers’, tamination of roads with manure and sharemilkers’ or managers’ attitudes towards it. Often it comes bottom of vermin carcases, she points out.

“You need to think of your farm as the priority list but herd replacement its own little island when it comes to calves are your cows of the future and a lot of how they perform in later life biosecurity.”

Valuing heifer calves at $500 and is determined by their health and bulls at $200 the financial loss of just nutrition as calves.”

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Unseen damage: tubes can put milk in the wrong place.

TUBE USE QUESTIONED DO YOU routinely tube feed calves?

Post-mortems on tubed animals show damage to throat tissue is common, as is milk getting into the rumen rather than the abomasum, says a North Island research scientist.

“The rumen should be 10-20% of the stomach in young calves but where they’ve been tubed it’s often distended and full of rotten milk,” Dr Lucy Waldron of LWT Animal Nutrition, Feilding, told Dairy News.

“When you cut them open it stinks: a calf’s stomach shouldn’t smell at all. The milk should all be in the abomasum and like cream cheese.”

While she acknowledges the reason dairy farms reach for the tube – time pressure and to ensure colostrum is received – Waldron says using such devices is doing more harm than people realise.

“We’ve often seen lesions and tears in the oesophagus where calves have been tubed and we won’t buy them now. All our calves for research are picked up straight off the farm, straight off their mothers.”

Besides the physical damage observed, milk in the rumen provides a substrate for bacteria which is likely behind many cases of persistent scours and could well lead to less than optimal rumen function later in life, she suspects.

“It’s very hard to shift a population of bad or pathogenic bacteria once they’re in there.”

To ensure milk makes it into the abomasum it needs to trickle down the oesophageal groove through the stomach, not flood in as it generally does from a tube.

The suckling action is also important, Waldon says.

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DAIRY NEWS OCTOBER 14, 2014

ANIMAL HEALTH // 47

Heat test kit pilot shows potential ANDREW SWALLOW andrews@ruralnews.co.nz

PILOT USE of the P4

Rapid progesterone milk test on South Canterbury farms last spring shows there’s a place for it New Zealand’s seasonal calving herds, says the vet who coordinated the trial.

“It is good at telling you a cow is not on heat so you will not waste AI fees,” says Andrew Bates, of Vetlife’s Temuka branch.

The test’s also useful to confirm if a cow that appears to be a return really is on heat. Where it’s less useful is in the first three weeks of mating, unless pre-mating heats were recorded.

The reason is that when the test strip dipped in the milk sample of a cow suspected to be on heat produces a low progesterone result it means one of two things: she’s either on heat, or she hasn’t started cycling, he explains.

Hence if a pre-mating heat was recorded, a low result is a good indication she’s on heat again, assuming the pre-mate heat detection was correct, but without that pre-mating information the test adds little to traditional heat detection techniques.

In contrast, a high progesterone level in the milk means she’s definitely not on heat, but she has probably started cycling.

Several tests at about weekly intervals would provide the best informa-

tion on the cow’s reproductive state, says Bates, and that is how the tests are often used overseas but the herds are generally smaller than New Zealand’s and calve yearround.

“With seasonal calving herds of a thousand cows or more you’d be testing dozens of cows every day so physically it would be hard work and time consuming.”

Overseas herds, particularly those indoors with high producing cows, also tend to have more problems with silent heats, making weekly testing a useful tool to identify if the cow is cycling but just not bulling.

A use Bates wants to test in seasonal calving herds is in conjunction with progesterone implants such as CIDRs and DIBs. Typically about half of cows mated following progesterone implants’ CIDR/DIB treatment hold. Of the other half, some will show up as returns at about 21 days, but frequently quite a number don’t. Until pregnancy tested, these cows will appear to be in calf so they won’t get served again until at least 40-45 days after the initial mating.

“The earliest you can pregnancy test is 30-35 days after mating and it takes up to ten days for interventions at that point to get them going again,” explains Bates.

Using the P4 Rapid

test on progesteronetreated cows that hadn’t returned by about 24 days after mating could identify those non-cycling, non-pregnant cows some

10 days sooner, bringing forward the whole intervention, re-mate and, hopefully, conception and calving by the same amount.

Feedback from clients who trialled the kits last season was generally positive, says Vetlife’s Andrew Bates.

“Potentially that’s another 10 days in milk so depending on how productive the cow is, and what the payout is, it could be worth a lot.”

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THE P4 Rapid test kits will be available through most veterinary clinics this spring, says Colin Harvey of FarmTest, a company set up to import the kits.

“They do need a bit of guidance in how they’re used which is why we’ve gone for sales through vet practices,” he told Dairy News.

A milk sample is taken at cupping-on, put into a small test-tube supplied with the kit, and test strip dropped into it. Five minutes later you have a progesterone reading.

In a trial at Massey University’s number one dairy farm, combined with a switch to once-a-day milking and recording of oestrus behaviour, it helped lift first-round conception from 60% to 80% last season, he notes.

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DAIRY NEWS OCTOBER 14, 2014

48 // ANIMAL HEALTH

Switch to maize cob aids health – supplier FEEDING MAIZE

silage made from cobs has improved herd health and boosted production on a Hauraki Plains farm, says the maize supplier Pacific Seeds.

Ross Carter, Ngatea, milks 280 cows on his 113ha property ‘Shinarro’, feeding pasture and maize crops for 30 years. He has switched from using stover (the green part of the plants) as the main feed component to silage from the cobs.

Ross Carter

“As much as the green part of the plant is useful with its fibre, it hasn’t got the high starch and metabolisable energy (ME) we’re chasing,” he says.

“Since moving to maize silage animal health is better: they keep their condition and it helps their immune system because they’re less stressed than when looking for feed.”

Carter, his wife Karina and parents Brian and Shirley add the maize

silage to a mixer wagon with tapioca, molasses, canola, straw and grass silage.

“The cows utilise this better so we get a better feed conversion and it’s also a better, more balanced diet as we can balance out proteins and energies as the season changes,” Carter is quoted as saying.

Pacific Seeds says Carter took note of the cob-to-stover ratio in choosing his maize

Test-a-bull, move-a-bull, trace-a-bull

because the ME content of maize silage is largely determined by the percentage of grain present – grain containing 70% more energy than stover.

Says Carter, “Large girthy cobs, a high cobto-stover ratio combined with soft, starchy grain results in the best silage quality. If we can get cobs with kernels at 20 round, we’re happy.”

He says last season the kernel was a third, if not half, bigger again on Pacific Seeds PAC 624 than other hybrids he has tried, “as big as our forearm and 18-20 kernels round. But

it’s the kernel size we’re excited about.”

The maize crop comprised 13ha of PAC 624 and 1ha of PAC 606. Carters sowed half the crop on the 85ha milking platform and the other half on the 28ha runoff block, splitting the planting to access the capabilities of the new developed PAC 606.

Harvest was in March using an eight row Claas header. It yielded 24tDM/ ha – the best paddocks producing 27t/ha and the poorer soils at the runoff 23tDM/ha.

Tel. 0800 722 624 www.pacificseeds.co.nz

Aim for healthy, clean hooves AT LEAST 80% of lameness in cattle involves the structure of the hoof below the fetlock: sole ulcers, white line disease and foot rot top the list of disorders, says Animal Health Direct.

Lacking treatment and infection control, deeper tissue infection occurs, becoming more challenging to treat, it says.

AHD says its Keratex hoof wash is an economical and effective disinfectant for hooves and surrounding regions – long-lasting and powerful in its antibacterial action.

“Keratex hoof wash should be used whenever a hoof inspection is required and when treating a lame cow’s hooves; also suitable as a foot bath/soak treatment.”

Application is simple: spray or soak mixed formula (40ml or two capfuls to 5L clean water) in generous amounts over the hoof and surrounding area prior to inspection; after treating leave to air dry.

This will help eradicate and control bacteria that can cause infection in and around the treated region, the company says. Repeat the application each time a cow is inspected.

For footbaths, 1-124L of clean water (1L = 125L mixed): walk cows through the footbath, leave standing in a clean yard to allow Keratex hoof wash to air dry.

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DAIRY NEWS OCTOBER 14, 2014

ANIMAL HEALTH // 49

To wean or not to wean?

GEMMA CHUCK

THE PRE-WEANED

calf relies primarily on digestion of milk in the abomasum (the fourth stomach) and small intestines. In the very young calf, the first three stomachs (reticulum, rumen and omasum) are not developed and the calf is considered to be a ‘simple stomached’ or ‘monogastric’ animal at this early age.

A successfully weaned heifer is far from being a monogastric animal.

She is a ruminant which means she relies on the digestion of plant-based food by fermentation in a specialised stomach called the rumen. The presence of bacteria and other microbes within the rumen help this fermentation process.

At weaning, the calf no longer has access to a milk diet. In order to grow and thrive, the calf needs a fully functioning rumen

to be able to utilise all the nutrients from a non-milk diet (grain and forage). If the rumen is not developed and prepared for weaning then the calf will not be able to utilise these nutrients to maintain herself and grow. This can result in a decrease in growth rate after weaning, the so-called ‘post-weaning slump’. Therefore the primary goal of the milkfeeding phase and leadup to weaning should be to promote rumen development so weaning can occur as smoothly as possible.

The lining of the rumen is composed of finger-like projections called papillae.

These papillae increase the surface area of the rumen for absorption of nutrients. The term ‘rumen development’ reflects the number and length of these papillae, along with the microbes present in the rumen to help fermentation.

Traditionally, it was thought feeding

roughage (fibre) to calves promoted their rumen development. The so-called ‘scratch factor’, where large particles and fibre scratch the rumen lining to stimulate papillae development, is now considered a myth.

Research has shown that it is in fact grain that stimulates papillae growth by production of volatile fatty acids, such as butyrate. High forage diets result in production of acetate, which does not promote papillae development. Therefore, to obtain high levels of butyrate, a rapidly fermentable, high-quality calf starter or grain must be fed.

The earlier a calf starts consuming grain, the more quickly the rumen develops and the sooner the calf is able to maintain and grow on a non-milk diet.

Prolonged milk feeding will not promote rumen development. This leads us to the question “When is the right time to wean?”

With our knowledge of rumen development, the best indicator for weaning is based on consumption of calf starter/grain. Size, weight and age are not accurate estimations of an animal’s rumen development and functionality.

For example, the rumen of an 80kg dairy calf consuming 1.75kg of calf starter per day will be different from an 80kg milk vealer calf on a high volume milk diet. For calves in a group fed system, where accurate grain consumption per calf can be a challenge, it is recommended to monitor on a group basis over three consecutive days. As a guide, in group fed systems:

Friesians 1.5–2kg/day* Jerseys 1–1.5kg/day* *Based on calf grain containing 18-20% crude protein.

• Gemma Chuck is a veterinarian with The Vet Group, Australia.

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THE STRESS OF WEANING WEANING CAN be a stressful time for young calves as they no longer have access to a diet to which they have been accustomed. Overwhelming stress can lead to disease as stress releases cortisol, a hormone which can suppress the immune system and reduce the ability to fight disease. Subsequently, the calf can succumb to a disease which it would otherwise have been able to fight off had there not been a stressful event.

Weaning will be more successful if calves are exposed to

only one stressor at a time.

Tips for a stress-free weaning include: ■■ Vaccinate and dehorn calves at separate times, prior to weaning.

■■

Ensure grain is available to all calves at all times. Monitor grain intake on a pen-bypen basis and keep records of consumption per pen.

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■■

Provide ad lib fresh water from birth.

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Transport and/or turn out calves before or after

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Wean during good weather if possible.

Weaning can be gradual or abrupt. Gradual weaning e.g. over seven days, is less stressful than abrupt weaning.

Successful weaning and post-weaning growth will ultimately depend on a number of factors. Optimal nutrition to promote rumen development and minimising stress, will help enable the monogastric calf to become a fully functioning ruminant without adverse effect on growth.

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DAIRY NEWS OCTOBER 14, 2014

50 // ANIMAL HEALTH

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dairy farming is the need to get cows back in calf so they will calve again, and begin a new lactation each year.

In our part of the world, October is the time when we start to turn our attention to getting the spring calved cows back in calf. The 6-week in calf rate after the mating start date is a key performance indicator and effect on profit.

For many years, I have told farmers that no cow has ever gotten pregnant without first having a dose of semen in her. So when I am asked for advice about herd reproduction problems a lot of my focus is on ensuring that every cow is submitted to mating as early as possible in the mating period.

Reproductive success can be achieved in many ways but the things that every successful mating program have in common are attention to detail, consideration of all the influencing factors and a sound application of knowledge of the bovine reproductive cycle.

There are literally dozens of different reproductive programmes out there in the marketplace, each and every one of them has a place, and each should be considered on its merits.

The key considerations that I put the most emphasis on will vary depending on each farm’s needs and facilities.

For example, there is no point trying to enrol an entire herd in a fixed time AI synchrony programme if the farm doesn’t have sufficient facilities to manage the herculean task of ensuring the right cow gets the right needles at the right time and then that all the enrolled cows are able to be inseminated in a timely manner within the

ideal window.

The oldest tried and true method of getting dairy cows pregnant is to AI them to observed heat. Relying entirely on heat detection can result in a large number of cows never being submitted to a mating at all either due to failure to actually detect heat in a cycling cow, or due to the cow not cycling at all. Many herds at the start of mating may have greater than 20% of their cows not yet cycling, and in some instances where transition has been challenging, feed availability limiting or some other complicating factor present, the percentage of non cycling cows can be much higher.

These non cycling cows and cows that cycle and are not detected in heat due to either a quiet or short heat will never get pregnant, so a strategy to deal with them is a critical component of the success of any mating program. Heat detection aids like tail paint, kamars, estrotect scratchies, etc are all valuable tools. Increasingly, I am finding herds relying on other technology like pedometers, activity meters and even their robotic dairies to detect heat. Knowing that no single method is perfect, and the more aids to heat detection that you can use, and then adding to that just good old fashioned time observing your cows, are the essential ingredients when using a programme that relies on the detection of heat in order for a cow to be mated.

Attention to the small details like semen handling and thawing, stress free cattle handling, excellent semen placement by a skilled technician are also critical factors to success. I suggest you record with the mating who it was who inseminated the cows so that if one or more inseminators are performing much below average they can

be either avoided or retrained. I have investigated a herd where one inseminator managed only one pregnancy for the entire season. Guess who never got invited back again? It is the old story of if you don’t measure, you can’t manage and the reproductive performance of your herd is no different In some herds, some or all of the cows will be submitted to a fixed time artificial insemination (FTAI) programme. There are a number of different FTAI programmes that are used on dairy farms, and it is always best to seek independent advice from your veterinarian before launching into a whole herd FTAI programme as it may not always be the most cost effective method of getting your cows in calf. However FTAI programmes are now widely recommended by most veterinarians when working with the proportion of the herd who are anovulatory or anoestrus, and intensive monitoring for return to heat or very early pregnancy diagnosis for those who do not return is my go-to strategy when dealing with these cows to avoid the phantom cow phenomenon (where previously mated but not actually pregnant cows fail to return to heat for a prolonged time).

Early treatment of non cycling cows, and early intervention to detect and re-mate the phantom cows is another key strategy to ensure good reproduction outcomes in your herd There is no better qualified professional to work with you to develop a cost effective programme that works for you in your best interest, not just to sell you the most doses of semen, than your own herd veterinarian.

• Rob Bonanno is a former president of the Australian Cattle Veterinarians Association and a director of Shepparton Vet Clinic, Victoria.

DAIRY NEWS OCTOBER 14, 2014

HAY & SILAGE // 51

Feed changes part of backto-basics for Oz farmer RICK BAYNE

AUSTRALIAN FARMER Simon Elliot’s

“We cut a heap of silage last year and weren’t happy with the quality of it. For the amount of investment you put into it, I don’t believe you get a return on it,” he said.

“We’ll weigh up, depending on the season, whether we can source

ing a few more cows than picking up the extra expense of that. You’ve got to weigh up quantity versus quality.”

Elliott advocates “getting back to basics” in dairy farming.

“Everything’s gone too far. Every time we’re told

move from north to south of the Princes Highway in south-west Victoria took him less than 100km but forced him to adapt to a new set of weather conditions.

“Everything’s gone too far. The old The move last October from Tarfarmer used to just throw them a rone to Scott’s Creek bit of hay and they did well. We saw Simon and his seem to be refining everything we wife Shelley double the size of their herd do as a farmer but we’re not refining from 140 to 330 on a it to make more money.” much larger leased 215ha farm. to put more and more into better quality silage than It also led them to we can produce ourselves. our cows to produce, but reconsider their feeding it makes you think about and hay and silage regimes Depending on what the season is like up north, we what the cows used to eat. to adapt to the new conThe old farmers used to might be better buying in ditions. just throw them a bit of hay and silage than pro“We don’t regret the hay and they did well. ducing it ourselves.” move. It’s certainly a lot “We seem to be refinLast year the farm cut a easier over this side of the lot of silage but the Elliotts ing everything we do as highway than the other side,” Elliott said. “But it’s were concerned about the a farmer but we’re not quality and the costs. been an interesting scerefining it to make more “You don’t usually nario dealing with the difmoney.” ferent weather conditions, cut it off your main milkElliott believes “back ing platform; it’s usually utilising paddocks, pugto basics” should also at the back of the farm so ging and how much you apply to artificial insemiit involves a truck and a can do with tractor work. nation, calving and other couple of tractors,” Elliott expenses.

It’s a learning curve.” said. “By the time you lock The Elliotts believed “There are so many it up, fertilise it, get some- more cost factors that the extra land would keep one in to wrap it and bale the cost of production have come into dairy farmit, I don’t think there’s down by growing more ing but the milk price much difference in buying hasn’t moved with the grass instead of buying in better quality hay from up all the extra expense,” he more feed. It’s worked to north.” a degree but their silage said.

They plan to use a result wasn’t good.

They sell a percentage bigger milking platform “We trialled a few difof heifers for export but this year for more direct ferent ideas to get them Elliott says it was a “false grazing, supplemented by back to producing off economy” if dairy farmers better quality imported grass and using our silage rely on this income. “It’s feed. through the tougher something that should be “Unless there’s a big months,” Elliott said. a bonus, not something window to do silage, it He soon found the you should need to have would want to be a lot window to cut silage on for survival,” he said. the south side of the high- better quality. I reckon “It’s only China pushyou’d be better off milkway was very short. ing the market. If they

turn around and only pay $800 then that’s it, but on the other hand it’s going to be a problem if we keep exporting so much.”

After 47 years of living on and off dairy farms and making off-farm investments, Elliott says more needs to be done to encourage young people to get into dairy.

“Without that we won’t have a dairy industry. You’ve virtually got to go off the farm to generate enough money to get back into farming. If you look at the ageing population of dairy farmers, something has to give soon,” he said.

The new farm is meeting its production targets but Elliott has no more expansion plans.

“The factories are pushing everyone to produce but everyone’s looking to slow it down not

Simon Elliot

speed it up when you get in your 50s and 60s,” he said. “They say when the prices are good you should crank it up and then drop it back when the prices go down, but that’s an impossible scenario.”

Elliott says he enjoys the cows and the lifestyle but has no desire to buy a farm and will continue leasing and investing in

other outside interests.

“I’d like to see less risk between one season and the next. You come off one good one and go straight to a bad one. So much depends on the price of milk, the Australian dollar

and the global markets that we can’t control.”

“We’ve seen the boom but some farmers unfortunately have seen the crash.

It’s going to be hard to sell a farm unless it’s to an overseas consortium.”

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DAIRY NEWS OCTOBER 14, 2014

52 // HAY & SILAGE

Lower crop yields in Oz AUSTRALIAN HAY and crop production is likely to be down about 10% this year, pressuring prices and supplies for dairy farmers.

Some regions are worse hit than others – southern Western Australia being a rare positive exception – but the lower yields are likely to lead to volatility in pricing and increased demand over coming months.

While a good drop of rain could ease the concerns, winter and spring rains have been disappointing after a generally good start to the season.

The latest Dairy Australia hay and grain report says most of the east coast of Australia would benefit immensely from more spring rain, except for the northern markets where rain would only bring harvest quality downgrades.

“More rain will mean higher production in south eastern Australia which would take a lot of pressure off prices,” the report states. “No more rain and stocks will be tight again which will create local volatility in prices throughout the year.”

The lower than expected growth has been experienced broadly across Australia, from major crop growing regions

Dry weather has affected Australian hay and crop yield.

to individual dairy farmers wanting to produce more home-grown feed.

The good news is the dairy industry is coming off a good start to the season and an exceptional 2013 and isn’t likely to see repeats of the disastrous conditions that prevailed in 2012.

Industry development manager for the Australian Fodder Industry Association (AFDI), Caitlin Scholfield, says hay shortages were looking likely this year.

The AFDI is advising hay buyers and the dairy industry that it believes hay

supplies will be short this year, in particular protein hay supplies with lucerne and vetch likely to be well back due to a combination of increased demand from the domestic market and reduced supplies. “That’s a trend we’re seeing right around the country,” Scholfield says.

One of the worst hit areas is the Wimmera-Mallee in Victoria. “They’ve had a tough season and it has dried up quickly which has affected the vetch crops in particular,” says Scholfield.

Some parts of South Australia have

also had a dry finish to the season which is likely to impact on lucerne supplies.

The price of water in Victoria and parts of New South Wales is also having an impact. Scholfield says irrigated lucerne played a big role in supply but because opening water prices were very high some farmers could shy away from lucerne this year. “That will impact on prices,” she adds.

Scholfield says she is not willing to commit to pricing at this stage but said that as the hay season progresses and

the supply situation becomes clearer prices are likely to go up. She encouraged farmers to keep a close eye on Dairy Australia’s hay price report.

“Between now and Christmas we are likely to see the price change for hay as conditions dry off and yields fall back, coupled with extra demand from the export market and from northern Australia where dry conditions are already hurting,” Scholfield says. “There is increased competition this year and it will affect the domestic market.”

Despite an upswing last year, hay production has been on a downward trend over the past decade.

Scholfield says conditions were starting to impact and throughout Victoria farmers were putting livestock back on paddocks that had been locked up for hay and silage. “We expect pasture hay and silage will be down this year.”

Pasture hay and silage are expected to be down this year but not drastically.

Australian Crop Forecasters general manager Ron Storey says that nationally crops were down about 10% on last year.

“Nationally we’ll end up with a lower figure than last year for sure.”

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™ATRAFLOW and ™SYNOIL areTrade Marks of Orion Crop Protection Ltd. ™ATRAFLOW Registered pursuant to the ACVM Act 1997, No. P7775. ™ASTOUND is a registered Trade Mark of Agricultural Imports Direct NZ Ltd. Registered pursuant to the ACVM Act 1997, No. P7747. ®CALLISTO and BANVEL are Registered Trade Marks of a Syngenta Group Company. Registered pursuant to the ACVM Act 1997, Nos P7425 and P1125.

See www.foodsafety.govt.nz for registration conditions. See www.epa.govt.nz for approval conditions.

www.orioncp.co.nz

DAIRY NEWS OCTOBER 14, 2014

HAY & SILAGE // 53

WA doing well but other regions down SOME REGIONAL

areas in Australia such as southern Western Australia are doing well, but others have lower-thanaverage production.

Southern Queensland and north-west New South Wales remain poor for a second consecutive season as drought conditions continue, while the Wimmera-Mallee region of Victoria is experiencing a bad year with some crops cut to hay and others failing or producing poor results.

“They are the two bad

Michele Ryan, Victorian forage management specialist

areas but there will be other areas below average,” Australian Crop Forecasters general manager Ron Storey says.

Despite the lower yield, Storey says there would be no overall impact on supply of grain for dairyfarmers. “Being down 10% cent is not a problem for the overall supply of grain.

The issue is where the grain is.”

In Victoria supplies will be tight because of the poor season in the Wimmera-Mallee. “You could liken that to what has happened in northern New South Wales and southern Queensland for the past two years. What it means is that the grain has to be imported to those regions where the demand is,” says Storey.

There would be more grain imports from New South Wales and South Australia to cover the shortages. “That will be a higher cost to the end customer because they will be paying more for freight,” he ads.

Western Victoria and north-east Victoria dairy

crops should be about average “but when they need to top it up, particularly in the Western District where they normally draw from the WimmeraMallee, it’s going to be harder to find.”

Victorian DEPI grazing and forage management specialist Michele Ryan says quality and quantity of pastures in south-west Victoria were lower than what most had hoped for.

“At the moment it’s not looking as good as last season. They will be able to make something but maybe not as much as they liked,” Ryan says.

“If we get 25mm of rain it changes it all again.”

Ryan says reports indicated good quality hay might be difficult to find from the Wimmera-Mallee region.

Dairy farmer and hay contractor from near Adelaide, James Stacey, says paddocks are looking “brown”. It is likely to be an average year and he recommended dairy farmers start securing supplies for summer.

“People have cut a bit more than usual but now their pastures are shot.

It’s going to be a long summer. There’s going to be hay around but if I was a punter I’d be securing hay needs fairly soon because a lot of regions are going to be hand-feeding stock and going through a fair bit of hay over the next seven or eight months.”

After a promising start to winter, conditions have deteriorated.

“We haven’t had any substantial rain since the end of July,” Stacey says.

“Cereal hay yields are about average and silage cut was good early on but pasture wise, unless it’s irrigated it’s just about cactus now.”

Higher rainfall regions in South Australia have had reasonable silage cuts but will need rain in the next week or two to get reasonable hay cuts. The Barossa region has been wetter and is doing well, boosted by extra frosted cereal hay being cut. Hay

Check out the latest news and information at www.dairynews.co.nz

yields are a bit below average in south-east South Australia but the quality is good considering the dry conditions.

Stacey says the biggest challenge would be supplies of protein hay. “It’s

Adelaide dairy farmer and contractor James Stacey says hay supply will be squeezed this season.

been too dry for clover and vetch hay,” he added.

Despite the seasonal problems Mr Stacey didn’t believe prices would go to extreme levels. “Buyers are resisting at this point,” he adds.

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DAIRY NEWS OCTOBER 14, 2014

54 // HAY & SILAGE

Avoid losses while making silage MOST LOSSES during

silage making are invisible but they can be up to 40% of the original cut pasture, says DairyNZ. Losses occur as sugars and protein in the grass are broken down by

enzymes and bacteria, a process starting as soon as the grass is cut.

DairyNZ’s publication Farmfact points out that losses decrease quality and quantity as the highly digestible components

rapidly break down.

As cut pasture waits to be picked up, sugars are lost through the process of respiration. Drier pasture is more likely to be lost while being picked up because it is more likely

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to break up or blow away.

As the DM% of the pasture increases, so do field losses.

Plant sugars are used up during fermentation to make acid. In poorly preserved silage, protein and organic matter can also be lost because of air in the stack or a high pH. Fermentation losses are lowest in pasture which is above 25% DM. Silage effluent is surplus water from the silage, which carries soluble sugars and proteins with it as it flows out.

Effluent is produced from silage made out of low DM pasture. Above 30% DM, no effluent losses will occur.

In dry-grass silage it is a challenge to achieve good compaction. Poor compaction causes air to penetrate into the stack once it is opened. When air is present, yeasts are able to generate heat from sugars and even from lactic acid and cause losses by converting these nutrients into heat.

Optimum DM for silage is 25-30% because total DM loss is minimised, and effluent losses will be minor. To achieve this: ■■ Cut in the morning of a sunny day for rapid wilting. Cutting after 1-2 days sunny weather will result in good sugar levels in the pasture, even when cut in the morning.

■■ Avoid wilting for any more than 24 hours.

■■ Compact the silage well. In a stack or pit, use the heaviest wheeled vehicle available. Tractor wheels should not sink into the pile of pasture any further than the depth of rubber. For baled silage make sure a high density baler is used.

■■ Seal the stack completely with a weighted, airtight cover. Wash old polythene before use to avoid contamination with the wrong bacteria.

■■ Don’t re-open a covered stack to add more pasture on another day.

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SILAGE BEGINS to break down once exposed to air, and will begin to heat up as micro-organisms turn the remaining sugars and protein into heat and energy.

When feeding out, aim for as little time as possible between exposing the silage to air and the cow eating it.

High DM% silages are particularly prone to deteriorating when exposed to air. Deterioration increases as air temperature increases, so silage fed over summer will have higher losses than that fed in winter. Yeasts and moulds containing toxins may grow on deteriorating silage.

There are a number of ways to limit losses from silage while feeding out: ■■ Remove at least 20cm off the whole stack face each day, so silage at the face is not exposed to air for a more than one day.

■■

Cut silage off the face, rather than pulling it off. This keeps a smooth surface at the stack face, which reduces air penetration into the stack.

■■

Leave the stack face open on dry days to avoid heat build-up under the polythene.

■■

Do not feed out more than 1 day in advance, especially in summer.

■■

Cows will be able to eat more of the silage they are offered if it is fed out on dry paddocks or feed-out areas, along fence lines or in feed bins or troughs.

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Once the silage is sealed, nothing can be done to change the fermentation process. Good fermentation relies on no air being in the silage, and having plenty of sugar available to turn into lactic acid.

DAIRY NEWS OCTOBER 14, 2014

MACHINERY & PRODUCTS // 55

Keeping feed dry on farm HAVING PROBLEMS keeping your

product / feed dry on your farm?

NZ Tarping Systems may have the solution; its unique retractable tarping bunker roof system is made to measure so they can be installed on all types of bunker roofs. Farmers throughout the Waikato, Bay of Plenty and Taranaki are very happy with the tarping systems.

Gary Andrews, NZ Tarpings says it is not a new system; it’s in use for decades but relatively new to New Zealand.

The system runs on a single 6mm cable along each side, (there are no gutters or tracks, this system is very unique). Which can be wound by one person simply winding it back or forth which takes about two minutes. “The days of dragging tarps to cover your bunker are over, “he says.

“The bunker roofs are all about protecting the feed and fertiliser from the rain and other elements: at a time when the pay-out is down farmers are clamping down on costs, this system is the most suitable effective proven one around in preventing losses. “ The system retracts right off the rear of the bunker, and only needs a meter to fold back to, eliminating the need

to have rails full bunker length out the back so you can get to the product right to the back of the bunker; this is also a benefit when the bunker is being filled.

As the cover is never in the way and whenever the cover is used remember it only takes one person.

Cost depends on the type of materials chosen for the cover; it is our recommendation for heavier grade material for its longevity and effectiveness. The benefits of the system far outweigh the initial outlay.

Andrews, a Kiwi who worked for 33 years in Australia in the transport industry, In New Zealand and Australia as a body maker and fleet manager; during this time he gained a great deal of experience with automated retractable tarping systems that are mandatory on trucks in Australia. The twin cable system is proving to be far superior by comparison to other systems available.

“Returning to live in New Zealand 5 years ago my observations were of the

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lack of good safe tarping solutions. I recognised the need for promoting and installing retractable tarping systems

within our own trucking industry for the safety of operators and the increase that could be gained in productivity. “ “I also saw the need for this system for farmers as I drove around seeing them dragging old tarps taking two or more guys sometimes. This is not a new product it has been in use in Australia for years so there is nothing to be

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proven here, it works and has done for years I’m just bringing it to New Zealand and I stand behind my product and the tarping systems so much so I made it my business.”

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DAIRY NEWS OCTOBER 14, 2014

56 // MACHINERY & PRODUCTS

Boluses offer accurate regular doses of trace elements

Tracesure boluses offer adequate trade element ingestion.

FOUR KEY trace elements are dosed daily with consistency over five-six months by the Tracesure I and Copasure boluses, says supplier Agritrade.

Technical manager Andrew Oakley says the British product, developed there 20 years ago, remains the only bolus using leaching technology to dose daily.

The technology was developed by a veterinarian, Les Porter, who founded Animax (UK) Ltd. Says Oakley, “It allows cattle to get the four key trace elements essential for productivity and performance in accurate, consistent and regular doses over five-six months.”

Low levels of selenium, iodine, cobalt or copper can have serious effects on ruminant health and pro-

duction, Agritrade points out. Grasses and forages are frequently low in one or more of these elements so the standard practice is to cover them all. With heifers coming up for mating it is important they get essential trace minerals to help improve conception rates.

Supplementation should be controlled at levels that will correct seriously inadequate dietary intake while not giving rise to toxicity: this requires individual administration in a slow release form, the company says.

“The idea that animals will only take the trace elements they need in free access products has been disproved many times. In these products, levels of potentially toxic materials are minimised to avoid poisoning the greedy feeders, but this prevents the rest of a

herd or flock from getting sufficient quantities.”

The feed industry provides an interesting parallel, Oakley says.

“With low levels of key trace elements and other less important micronutrients common in bulk feeds, particularly in grain, it is standard practice for a micronutrient package to be included with virtually all manufactured feed.

“This makes sense since it only takes

one key element to without having to rely on dry matter be at a low level for intake; animals are supplemented animal performance regardless of their ability to consume to be impaired. However, forage.” if livestock are unable to con- www.nzagritrade.co.nz sume enough dry matter, their ability to consume sufficient ■■ Simple, easy to use application delivering up trace elements to 6 months’ supplementation in one dose becomes lim■■ Accurate and reliable daily dose of trace ited. minerals “Bolus■■ Delivers selenium and iodine together in a ing allows form which improves activity of both minerals the livestock ■■ Improves performance of delivery compared producer to to other applications achieve a sim■■ Peace of mind in knowing your cattle are being ilar coverage of supplemented daily with selenium, cobalt and selenium, cobalt, iodine copper and iodine

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DAIRY NEWS OCTOBER 14, 2014

MACHINERY & PRODUCTS // 57

Milk meter design wins accolade A HAMILTON company

has won a design award for its contribution to the development of Waikato Milking Systems’ new electronic milk meter.

Millennium Plastics Ltd was awarded the overall Supreme Award at the 2014 Plastics Industry Biennial Design Awards for their contribution. It also won gold awards in the primary product and conventional injection moulding process categories.

Millennium Plastics general manager Tony

Rutz says the company is honoured to receive the three awards.

“It is great validation for our staff…. At Millennium Plastics, we do things a bit differently…. Our expertise lies in working with our customers to ensure their original product ideas and designs capture the greatest value for their business and achieve the product benefits they promise their customers.”

Waikato Milking Systems’ new electronic

milk meter provides accurate real-time milking data, enabling dairy farmers to improve herd management decisions and long term profitability.

Product design manager Jim Pharaoh says its first concepts for the electronic milk meter were developed several years ago.

“Several prototypes were trialled on farms resulting in a computer model which was submitted to Millennium Plastics for critique and Waikato Milking Systems’ new electronic milk meter.

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DAIRY NEWS OCTOBER 14, 2014

58 // MACHINERY & PRODUCTS

Feed train that won’t cut in, collide HOOK TOGETHER five

or six Milk Bar feed trailers and tow them through any gateway – no collisions!

That’s the maker’s

promise, says sales manager Anna McIntyre.

All-wheel steering enables each feeder to exactly follow the tracks of the tow vehicle.

“At this time of year you will often see a PKE trailer with a big dent where it has cut in and hit a post,” says McIntyre.

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Train will never cut in, no matter how many you are towing. It is remarkable to see five or six of them being towed through a gateway with no damage risk to post or trailer.”

The Feed Train also has a split brake system. A simple but effective lever allows the user to ‘park brake’ the trailer before it is removed from the tow vehicle.

“When you have a tonne of PKE on board, you want to know it will not roll away and injure

somebody.”

For towing stability and balance the Feed Train has split troughs. Each trough has a central ridge for the cows to push against to get the last crumbs and eliminate waste. It comes in two sizes: 4m which holds 850kg and 6m which holds 1250kg.

The Feed Train is made from 75mm channel steel, braced for added strength.

All steel work is hot dip galvanised. Warranty is three years.

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DAIRY NEWS OCTOBER 14, 2014

60 // MACHINERY & PRODUCTS

Turning poo from problem to asset GARETH GILLATT

A ONCE-PROBLEMATIC effluent pond has

switched to yielding valuable nutrients on a King Country farm. The owners attribute the change to their use of Impact bacterial solution distributed by BioMagic, Auckland.

Impact increases bacteria and fungus activity in effluent ponds.

Grant and Christine Mitchell, Otorohanga, built a 1200m3 effluent pond in 2009 after making do with a sump emptied onto nearby paddocks through an irrigation cannon.

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crust forming on top. And production dropped on the 40ha irrigated part of the farm, which he attributed to a separation of the solids and liquids in the effluent.

“When the effluent was being irrigated onto the paddock it was the same color as the water and a thick crust had built up.”

He also saw his cows delaying their move to paddocks for grazing. “You couldn’t put cows onto an irrigated paddock until about three weeks after the cannon had been in the paddock.”

After two years of thick crusts Mitchell started looking for solutions, including briefly considering buying a pond stirrer. Then he learned of Bacterial Impact, containing over 100 bacterial and fungal species, formulated to ‘kick off’ a pond’s natural oxidation process, resulting in less sludge and a more valuable nutrient.

A heavy first dose and smaller monthly doses increase aerobic bacteria and fungus activity and improve the value of product pumped from the pond, the company says.

The treatment is said to generate up to 300% more plant-available nitrogen.

Mitchell says he saw his pond come free of sludgy buildup within two years. “Now when the effluent comes out it’s green, meaning its getting mixed.”

Effluent going out to the paddock is also better mixed and brings better growth, he says. “The silage I get off the paddocks which have effluent

on is rich, green and nutritious. And I have pumped it onto maize paddocks with good results.”

Mitchell says the grass is more palatable after treatment. “Cows will eat the grass much sooner than usual after I’ve put effluent on the paddock.”

While BioMagic recommends pouring the formula on the yard and hosing it off into the effluent pond Mitchell has got better results pouring the 5l top-up solution directly into the center of the pond. “It often works best if you leave the pond a week after putting the solution in before irrigating it.”

Weekly use of the 20hp Reid & Harrison electric pump aerates the pond, ensuring the aerobic microbes keep working at their best. “It’s still early days.”

Mitchell has expanded the system each year since he started using the formula. “It’s pretty much free fertiliser and I want to make better use of it.”

Three seasons ago Mitchell started growing maize as a summer crop to get cows through the January-February feed pinches. Then last season he applied treated effluent to crop paddocks before sewing seed on them.

“One of the yields of the irrigated paddocks was unbelievable; I couldn’t get over how much maize I was able to harvest.”

His 170 cows on the 75ha effective dairy platform last year produced 63,000kgMS. Tel. 09 424 4476 www.biomagic.co.nz

DAIRY NEWS OCTOBER 14, 2014

MACHINERY & PRODUCTS // 61

Hat trick for car maker SUBARU’S LEVORG has won the

‘Good Design Award 2014’ in Japan’s Institute of Design (JDP) promotion.

The Levorg, a sports car-performance wagon, so far sells only in Japan.

Says JDP, “it has a dynamic form with fender blisters and a roof line that’s sloped more sharply than the traditional wagonstyle Legacy while maintaining the brand’s strengths of good visibility and a versatile cargo space.

“In the interior… we can see attention

to details in the feel of materials and the sound quality of moving parts,” the award citation said.

“With Subaru’s technologies such as the horizontally opposed engine and EyeSight driver assist system, the Levorg… ensures a secure, enjoyable driving experience.”

Subaru has won three good design awards from Japan’s Institute of Design Promotion. The Forester gained won in 2013 and the Impreza and Subaru XV took the 2012 award.

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KIA HAS won three major awards in the Automo-

tive Brand Contest 2014, run by the German Design Council. One was Team of the Year, presented to the company’s design group.

The two other prizes were Best of the Best in the concept car category for the Kia Provo sporty concept, and the exterior volume brand category was won for the all-new Kia Soul.

The award presentations, made at the recent Paris Motor Show, underscore Kia’s progress in design.

The team award was for Kia Motors’ design group’s work in Korea, the US and Germany. Led by chief design officer Peter Schreyer, the team got special praise from the independent jury.

“Schreyer and his international team have done a grand job over the past few years,” said the jury. “In an apparently saturated environment of formal possibilities for the Kia brand, they have come up with a unique brand design that stands out.”

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DAIRY NEWS OCTOBER 14, 2014

62 // MACHINERY & PRODUCTS

Cutter press good for silage economics FARMER BRUCE

McLennan says he uses his BvL Topstar silage block cutter on his grass silage and maize silage stacks to reduce wastage.

“By cutting so cleanly it reduces the admission of air which causes the silage

to start deteriorating and losing quality.”

He farms near the Fonterra factory at Lichfield between Putaruru and Tokoroa and has three large concrete bunkers servicing his farms.

He also uses a Webbline Silapress to increase compaction by up to 40% more than

traditional tractor rolling.

The machine, weighing 3600kg, is rear linkage mounted and has nine rings with a diameter of 90cm and a working width of 3.0m.

“Traditionally tractors used to compact and roll the stack have used tyres that are built to spread the load and can flex and

only press the widths of the tyres. But the Silapress spreads the weight to give consistent compaction over the whole stack,” said North Island salesman for Webbline, Cameron Smith.

Webbline sees no need for a dual wheel tractor on the stack because the same compaction job can

The Webbline Silapress increases compaction.

be done with a 170hp tractor as opposed to the usual 300hp machine. If the tractor has a front loader it can be used to spread as

Pichon tankers feature: · · · ·

Fully welded and galvanised tank – inside and out for long trouble free life.

Auto-filler options with operation on either side of tank for fast and easy filling without leaving the tractor seat.

Sprung drawbar for high speed yet stable operation with maximum operator comfort.

High capacity vacuum pumps for fast filling and discharge offer integrated oil reservoir and pump for long life operation.

·

Retro-fit tank agitation system to prevent sludge and solids build up for trouble free spreading without constant clearance.

Handling muck or slurry, Pichon spreaders are second to none!

See for yourself how Pichon can be integrated into your slurry and muck handling system.

Ask your dealer for a demo today!

Phone 0800 667 9663 to find your local Pichon dealer or visit www.equipnz.co.nz.

The name is spreading

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TONY HOPKINSON

well as to compact with the Silapress.

“They have a higher point loading than tractor tyres and when rolling bunkers the Silapress keeps the wheels away from the concrete walls.”

As an example rolling

Bruce McLennan.

a 12m wide bunker would take 20 trips with a tractor and only four with a Silapress.

Also available is a 3.0m, 11 ring model weighing 4100kg.

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

New Zealand’s No.1 proven product for bloat control.

Call your Ecolab territory manager or farm merchant today.

Freephone North Island 0508 732 733 South Island 0508 737 343.

Registered Pursuant to the ACVM Act 1997 No. A4467 and No. A3375.

KingSt11755_DN_D

Purchase Ballance Agri-Nutrients fertiliser this spring to earn $$$ for your local community.

We’ll donate $1 for every tonne you buy!* Nominate your cause at www.cashforcommunities.co.nz Over the past four years the farming community has raised more than $320,000 for schools and community organisations around New Zealand with PGG Wrightson Cash for Communities.

This year for the first time we’re running Cash for Communities during spring, giving you another opportunity to earn cash for your local community!

Simply purchase Ballance Agri-Nutrients fertiliser on your PGG Wrightson account, between 1 September and 30 November 2014, and you can start earning cash for your local community, school, St John or Rescue Helicopter.* If you signed up to our recent autumn Cash for Communities programme there’s no need to sign up again. We’ve automatically registered you for the spring programme.

*Open to PGG Wrightson account holders only. $1 per tonne of Ballance Agri-Nutrients fertiliser purchased (excluding Lime, Gypsum and Hatuma), between 1 September and 30 November 2014, will be donated to your nominated cause. See full terms and conditions at www.cashforcommunities.co.nz. Minimum donation per cause applies. The 2014 Spring Cash for Communities programme runs in place of a 2015 Autumn Cash for Communities programme.

Freephone 0800 10 22 76 www.pggwrightson.co.nz

Helping grow the country