Dairy News 9 Dec 2014

Payout clawback on the cards? PAGE 3 TOTAL MAKEOVER

T4 range gets more grunt PAGE 36

SAVING WATER Shed washdown made easy PAGE 28-29 DECEMBER 9, 2014 ISSUE 326 // www.dairynews.co.nz

MILK CHILL PROPOSAL NOT COOL “A good number of farmers will struggle to meet the new targets.”

– Andrew Hoggard, Federated Farmers Dairy chairman .

PAGE 4

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DAIRY NEWS DECEMBER 9, 2014

NEWS // 3

Payout clawback on the cards ANDREW SWALLOW andrews@ruralnews.co.nz

FOR THE first time in the cooperative’s history, Fonterra could be forced to clawback payout as dairy markets continue to slide.

The cooperative’s board meets today (December 9) and a cut to the $5.30/kgMS payout forecast was widely expected as Dairy News went to press.

Federated Farmers Dairy chairman Andrew Hoggard fears if it cuts to below $5/kgMS it will see the cooperative forced to clawback some of the advance payments it made in the early part of the season.

“Westland had to do it a few seasons ago and it wasn’t very nice for a lot of their shareholders,” he noted.

“The issue is we’ve all been paid $5/kgMS for the milk we produced in June, July and August. There would only have been a little bit of milk in June and July but for August there

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would have been some reasonable amounts.”

September’s advance payment plus capacity adjustment would also have been up there, so if the forecast falls into the $4 range, as all the banks are predicting, that money will have to be reclaimed too, he warns.

“The cashflow’s probably all right just now: we’ve just had the last of the money from last season. The impact’s going to come in the autumn, winter and spring next year. The red ink will be like blood on the balance sheet.”

Hoggard was speaking in the wake of last week’s 7.1% fall in whole milk powder (WMP) prices on Global Dairy Trade (GDT).

He was “pretty disappointed” to see New Zealand’s main product down by so much, but found a silver lining in butter and cheddar’s 7.3% and 5.2% rises respectively.

“And the forward contracts for whole milk powder showed a lift too, to US$2780/t, so that’s a small positive.”

However, it was still well short of Fonterra chief executive Theo Spiering’s annual meeting indication that WMP needs to be averaging US$3500/t by March if the $5.30/kgMS milk price forecast was to be achieved.

WMP is over 60% of the offering on GDT, and last week it was all from New Zealand.

Skim milk powder is the next largest offering, at about 14% of the tonnage, but that includes Indian and European product.

Hoggard says if farmers haven’t already done so, they should be revising their budgets and talking to their accountants and bank managers.

“We’ve just got to cut costs, focus on what’s absolutely required and what’s not, and if you can’t cut any-

Andrew Hoggard

more, we’ll have to borrow.”

Most regions are having a reasonable season, with the exception of Southland where rain and more rain is making for a “horrible” season with reports of production back 5-6%.

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DCANZ STATISTICS released the day before the GDT event showed New Zealand’s October milk production up 5.4% on last year, following a 5.7% increase in September.

Across the ditch, Dairy Australia reported 6% growth in October, following a 4.2% lift in September, and on the other side of the Pacific the USDA said October production was up 3.8% year on year and up 0.3% compared to September. The US national

dairy herd continues to grow and is now the largest it has been since August 2009 at 9.28m cows.

Meanwhile in Europe, UK industry body Dairy Co reports supply for the two weeks ending November 22 up 4.7% compared to the previous year, and Europe-wide supply for September was up 4.6%.

Farmgate prices in Europe and the US are falling but much more slowly than in New

Zealand and until recently, low grain prices had maintained margins over feed costs for most producers. Since October grains markets have staged a modest recovery while milk prices continue to fall, suggesting margin pressure will start to be felt.

However, that will have come too late for farmers mating extra cows and heifers in anticipation of Europe’s abolition of production quota which takes effect April 1.

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DAIRY NEWS DECEMBER 9, 2014

4 // NEWS

Cooling milk to stay ahead SUDESH KISSUN sudeshk@ruralnews.co.nz

MPI SAYS the tightening of rules on milk cooling is to keep New Zealand ahead of the game.

Internationally more stringent cooling rules are becoming the norm, and doing nothing will be an expensive option, says MPI director animal and animal products, Mathew Stone.

“If no change is made New Zealand dairy exporters might find it more challenging to gain the current premium returns derived from the superior milk quality and integrity of New Zealand’s milk supply,” Stone told Dairy News.

MPI believes that tightening the milk standard, even though a relatively minor change, will ensure that New Zealand maintains its perceived position as

a producer of premium quality milk.

Stone agrees the change will impose a cost on many farmers.

MPI has suggested a long transition period, with the new rule taking effect from mid 2016 for new farm dairies and mid 2017 for existing dairies.

Advance warning of the change of standard was to allow dairy owners to plan.

“The standards are being actively worked on at present, in consultation with dairy industry stakeholders, and MPI expects to formally consult on the proposed changes in the next few months. The proposal requires milk to be cooled to 6oC rather than the current 7oC, and a shorter cooling time.”

Stone points out that New Zealand has long produced high quality raw milk among the best in the world. Its rapid cooling ensures the quality is preserved

Matamata farmer John van der Goes spent $500 on an ice bank.

all the way to the factory.

The New Zealand standard for milk cooling has been proven sufficient for the range of dairy products made, and it has suited our milking practices, he says.

$500 ice bank fixed it MATAMATA FARMER John van der

Goes had known for years that he had a problem cooling milk.

An old ice bank fixed it, for $500. (His 57ha farm has 165 cows.)

But he knows that some farmers will have to spend big, depending on milking volumes and infrastructure.

“I knew I had a problem and regulations were coming…. We talked to people and dealt with it earlier rather than later,” van der Goes told Dairy News.

PUMPS

STIRRERS

On van der Goes’ farm milk was being cooled to about 12oC, “barely meeting guidelines”.

Now milk passes through two plate coolers. The ice bank has 500L of water with a frozen core in the centre; this keeps the water at 0.5oC. “Milk goes through the normal plate cooler first then goes through the plate cooler with the ice cold water in it,” he says. “It’s hooked up the same way as the other plate cooler; basically milk is cooled twice.”

PONTOONS

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However, as herd sizes have grown and farming systems have become more varied the standard milking times have become longer. “In light of this, MPI has reviewed the milk cooling standards

‘Farmers will struggle’ FEDERATED FARMERS dairy president

Andrew Hoggard says many farmers will struggle to meet the milk cooling regulations proposed

by MPI. For farmers in some regions – like Bay of Plenty and Northland – buying extra equipment to cool water or milk may not be the solution, he says. Elec-

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The question is whether some farmers will be in a position to take extra powerlines to their milking sheds.

“A good number of farmers will struggle to meet those targets,” Hoggard told Dairy News. “We are talking about big capital expenses in some cases

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with industry experts… looking at the purpose and science of milk cooling… and standards internationally.” The review showed the cooling standard should be adapted to current practice.

Stone says all dairy farmers and some dairy companies that assume responsibility for onfarm refrigeration will be affected. However, many farm dairies will meet the proposed rule with their existing equipment.

The new MPI regulations require farmers to hold milk at 6oC or cooler until the tanker collects. Present rules allow milk to be cooled to 7oC within three hours of milking and until collection. In Australia milk must be cooled to 5oC within 3.5 hours of milking; in China to 4oC within two hours of milking. In the EU, milk collected daily must be kept at no more than 6oC if not collected daily.

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– buying coolers, boosting transformers and increasing power lines.”

Hoggard is spending $45,000 on a new milk cooler from refrigeration company Snapchill. This will recover heat produced during the milk chilling process, using it to heat water.

Fonterra food safety technical adviser Tim Johnstone last month told farmers at a Smaller Milk and Supply Herds (SMASH) field day that the regulations aim to satisfy international markets.

“That’s the big one essentially driving the new regulations.”

New Zealand’s rules for raw milk storage are not as stringent as those of its major trading partners China, Russia, Australia and the EU; standards are

on par with the US. Johnstone says during audits of New Zealand farms, overseas regulators questioned why our milk cooling is out of line with the rest of the world.

“We’ve been getting away with… arguing that our milk quality is above everyone else’s.”

Paul Donderwinkel, director of Matamata refrigeration company Centigrade, says there won’t be a “one-size-fitsall” solution; rather, daily milk volume on each farm will determine the cost, “on average $5000$100,000,” he said.

Corporate farmers are more amenable to the new rules than are family farmers, the latter being “a bit more reluctant to embrace the proposed regulations”.

– Sudesh Kissun

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DAIRY NEWS DECEMBER 9, 2014

NEWS // 5

Comcom ruling will put formula makers in the clear PAM TIPA pamelat@ruralnews.co.nz

AN INFANT Nutrition Council application to the Commerce Commission will show the New Zealand infant formula industry aspires to the highest ethical standards, not only in marketing but also in trade practices, says nutrition council chief executive, Jan Carey.

The council is asking the Commerce Commission to authorise its members to be able to act in a noncompetitive way by restricting marketing of infant formula for children aged under six. Members already do this under their Code of Conduct.

The application is a legal dotting of ‘i’s and crossing of ‘t’s, says Carey.

The council, which represents manufacturers, marketers and exporters of infant formula in New Zealand and Australia, has in fact had a voluntary code for some so as not to undermine breast feeding.

“It is not enshrined in legislation; it is a self-regulating code which means that in essence it is against our New Zealand laws of anti-competitive behaviour so it is in effect breaking the commerce laws for trade,” Carey explains.

“But the Commerce Commission will authorise anti-competitive behaviour for the greater good and the Ministry of Health suggested that we do this.”

The Code of Conduct has been in place for many years following World Health Organisation recommendations, says Carey. “But there are a lot of new players on the market and we want to make sure that the process is correct.

“The greater good is for the promotion and protection of breast feeding policies and we adhere to that.

We make breast milk substitute but

we don’t want to be competing with breast milk. But we also choose not to compete with each other in marketing direct to the population and general public.”

Carey says New Zealand and Australia have good marketing practices for infant formula which were developed by the industry here in association with the Ministry of Health. In Australia it is called the Marketing in Australia of Infant Formula agreement and that is already authorised by the Australian Competition and Consumers Commission.

That needed to be formalised in New Zealand also through our Commerce Commission.

“It is part of showing the world that New Zealand has the highest ethical standards for dairy, not only for health but also for trade practices under the Commerce Act. So all government departments recognise the standard of our industry here and especially as it is an exporting industry.

“We had a code of conduct which says our companies will not bring the Infant Nutrition Council into disrepute and that means we expect their conduct in exports markets to be of a high standard in their marketing practices.”

The restrictions the council wants the Commerce Commission to authorise include not advertising infant formula, not distributing gifts or free samples to pregnant mothers or care-

Synlait’s focus on sales SYNLAIT MILK is intent on selling more to key customers and growing its infant formula and nutritional sales, chairman Graeme Milne told the annual meeting of shareholders last week.

The 2014 year was good for farmers but volatility made it difficult to consistently achieve profit margins, and changes in infant formula market regulations in China “added complexity”, he said.

“However we are now in a strong position to take advantage of increased sales in this market.”

But the benefit of greater infant formula and nutritional sales expected to be balanced out by increased operating

and funding costs.

Milne said Synlait intended to update its milk supply pricing in January 2015 with an update to its FY2015 forecast in March 2015 and news of interim results.

Managing director John Penno said infant formula and nutritional markets were now almost 50% of the business, with 45% of sales committed to four multinationals.

Capital projects this year include the completion of a third spray drier and a large quality testing laboratory at Dunsandel.

Synlait increased its revenue in 2014 by 43% to $600 million, up from $420m in 2013 and above the forecast of $524m.

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givers and not offering inducements to health professionals to promote infant formula. These restrictions give effect to the International Code of Marketing of Breast Milk Substitutes which aims to protect and promote breastfeeding, and to restrict the marketing of breast milk substitutes in ways that would undermine breastfeeding.

The commission may authorise under section 58 of the Commerce Act certain agreements that may otherwise breach the Commerce Act if it is satisfied that the public benefits outweigh the detrimental effects of loss of competition.

The granting of a restrictive trade practice authorisation protects the applicant from court action under the Commerce Act by the commission and private individuals.

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DAIRY NEWS DECEMBER 9, 2014

6 // OCEANIA DAIRY FACTORY OPENING

Milk toast to open factory ANDREW SWALLOW andrews@ruralnews.co.nz

RAISE YOUR glasses

and down your milk was the order of the day for dignitaries at the official opening of Oceania’s first factory in New Zealand last month.

The $236m plant at Glenavy, in the far south of Canterbury, was commissioned this spring and is set to expand dramatically over the next four years. A suite of developments was unveiled to coincide with the opening.

“We anticipate the first phase of the expansion

project will commence in early 2015 and have scheduled the remaining phases through to completion in 2019,” said Oceania chief executive Aidan Johnstone.

Oceania expects to be handling at least 630m L of milk from local farms by the end of the expansion

“generating export revenues in excess of $700m”.

This year Oceania will collect about 165m L from 48 suppliers, putting the plant at about 70% capacity in its first year. Johnstone told Rural News they expect to have “close to 60” suppliers next year providing a 25% increase

in supply. “We have a list of interested farmers but we will always take more expressions of interest.”

If anything, a lower payout would push more milk to Oceania, rather than Fonterra, as there would be less capital available for cooperative shares, he suggested.

Dignitaries down flutes full of milk at the opening.

With regards to Fonterra’s plans to put two new dryers at Studholme (the pocket-sized plant acquired after Russian-owned New Zealand Dairies went into receivership) he said he thought Oceania’s developments – a second whole milk powder dryer, an infant formula canning line, and UHT liquid milk and lactoferrin facilities – would “probably precede” them.

“But I think there’s plenty of milk in the region for us all,” he added.

Yili is calling the region, dominated by the Waitaki Valley and largely irrigated with water from the Waitaki River, “Milk Valley” reflecting its potential in their eyes. “Me and my colleagues call it the milk valley of the future,” company president Pan Gang said at the opening through an interpreter.

Gang stressed the contribution the Glenavy factory will make to the local economy and New Zealand’s tax take. “Yili Oceania is a great sign and leading symbol of the cooperation between New Zealand and China.”

Todd McLay, New Zealand’s Associate Minister for Trade, and Foreign Affairs, picked up the bilateral Kiwi-Chinese cooperation theme, saying the previous week’s visit

by China’s president Xi Jinping “marked an auspicious time in China and New Zealand’s relations”.

McLay stressed twoway investment is “the key” in the relationship, rattling off examples of Chinese investment in New Zealand which now accounts for over half the total overseas investment coming into New Zealand.

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DAIRY NEWS DECEMBER 9, 2014

OCEANIA DAIRY FACTORY OPENING // 7 HOUSEHOLD NAME IN CHINA VISITORS TO Oceania’s opening heard how Yili is a household name in China and the only Asian dairy company in the world’s top ten, with sales in 2013 of US$7.67bn.

Founded in 1956, over the past decade it has grown 22.4% a year as it pursues its mission “to be recognised as the world class health foods group”.

It has five business units: liquid milk, icecream, infant formula, yoghurt and raw milk [powder] – and over 10 million brands, visitors were told. Those brands include market leaders in China in icecream, children’s milk and organics, though yoghurt is its fastest growing category.

Meanwhile New Zealand Government and business investment in China has increased by “over 10% in the past year,” he said, citing Fonterra’s $615m Beingmate joint venture and continued investment in farms in China.

Zhang Fan of China’s embassy in Wellington said the Yili opening

“One in six kids drink Yili products in China,” the day’s Chinese speaking compere said through an interpreter.

The firm is the official sponsor of China’s Olympics team and has a branding deal with Disney.

In 2012 it started extending outside China, planning its factory at Glenavy; in 2013 it signed a strategic partnership with DFL in the US, and with an Italian dairy company.

Now its Glenavy factory is commissioned and a $400m expansion plan has been announced (see panel).

“So it is the only dairy company in China that reaches three continents,” visitors heard.

“signals the strong commitment of Chinese companies to make significant investments in New Zealand and mirrors the strong enthusiasm of a lot of Chinese companies to make inroads into New Zealand”.

Speaking on behalf of the farmers supplying Yili, Wilma van Leeuwen said Yili’s development

was the result of long, and ultimately very successful, negotiations, and she stressed the need for “both parties to be justly rewarded.” “We see this as a long standing partnership. To be successful both parties want to be looked after.”

It had been “very exciting” watching the $236m factory go up in little over

An Oceania staffer provides a comic moment as chief executive Aidan Johnstone and quality and compliance manager Shane Lodge looks on.

a year, from bare land to processing milk, and she congratulated the contractors and Yili for completing the project on time.

Van Leeuwen noted how 22 years ago when she and husband Aad moved to the area, theirs had been one of only five dairy farms in the valley, but now dairying dominates the landscape. Nonetheless, there’s “huge growth potential”, she said, both on farms already milking

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While Van Leeuwen didn’t mention it, getting

the go-ahead and funding for the Waihao and Hunter Downs irrigations

schemes, which could water up to 60,000ha, will be a key factor.

The F-word GUESTS AT Oceania’s opening may have thought the translator had put her foot in it when she said the F-word: Fonterra! It turned out her translation was spot-on because the cooperative’s general manager global sales New Zealand, Stuart Gray, was on the guest list.

“Fonterra has a really good relationship with Yili in China and deals with Oceania through DIRA milk here,” Gray later explained to Dairy News.

He said Oceania and Yili’s growth is “impressive” and that the opening is “good for New Zealand dairying in general” as it increases investment in New Zealand dairying and New Zealand’s position in the global market as a whole.

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DAIRY NEWS DECEMBER 9, 2014

8 // NEWS

Clever solution to pivot problem ANDREW SWALLOW andrews@ruralnews.co.nz A group of university students have developed a water-filled tote bag that could stop pivots toppling over.

DAIRY FARMERS with irrigators at risk of wind

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engineering students at the University of Canterbury.

The result is a patented water-filled tote bag design that can be deployed within 30 minutes of a high wind warning, possibly with no more effort than pressing a button on a mobile phone. What’s more, the simplicity of it suggests when commercialised the cost shouldn’t be too high either.

It’s envisaged a water bag will need to be fitted to every other span of a pivot. When not in use it’s rolled up and held high, out of reach of stock, under the centre of a span.

When needed, 1500L of water is pumped in, pulling the giant bag down to anchor the pivot until the wind danger has passed.

“We believe our solution’s stable to about 160kmh. That’s about twice what was experienced in the spring [wind] storms,” Tom Addis told last week’s FAR Crops 2014 event.

Addis was one of a team of four students who worked on the project with the guidance of associate professor Mark Jermy. Crops 2014 was the first time they’d been able to assemble the design since getting the specially modified helicopter waterbomb bag from the manufacturer.

“It goes under a helicopter… so we’re pretty happy it will take its own weight,” Addis said in response to questions as to whether the tethers from the pivot to the bag would tear it.

Jermy acknowledged the angle of the strops was not ideal and the design is still being worked on.

Another field day visitor asked what would happen if the bag needed filling when the power was off, as it could well be in a wind storm. FAR chief

executive Nick Pyke said that would be one of the things people would have to consider if they wanted a system like the water-bag design. “A lot of irrigation systems are gravity fed and some people have generators, but we don’t expect this to be the solution for you if you are 100% reliant on power.”

While he didn’t mention it, weather forecasts would likely give operators time to deploy the bags before the power went off too.

The students noted a problem with less-mobile anchor points such as concrete blocks at a certain point on a pivot’s rotation or lateral’s travel: damage may occur before the machine can be moved round to them. They’re also a permanent obstacle onfarm, whereas the bag is simply emptied when the wind risk has eased. As the water drains out, counterweights lift the bag back up under the pivot.

“It’s designed to lock at 1m above ground to allow the water to fully drain out and so you can [roll] it up for storage.”

Pyke said now the design is patented they’re talking to firms that might take it to market, with a proviso that whoever picks up the design and runs with it has to commercialise it quickly. “One company we’re talking to is pretty interested.”

Asked about dairy input into the financing of it, he said it had been discussed but there hadn’t been any, joking that perhaps when it’s commercialised dairy farmers should pay “three times the price for it,” seeing they generally don’t pay FAR levies. “But I think we’d find some of these dairy farms would very quickly have an acre of barley!”

• More from Crops 2014 in Rural News December 16.

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DAIRY NEWS DECEMBER 9, 2014

10 // NEWS

Tony Marwood, Bonlac supply company chairman.

Fonterra’s Aussie suppliers well paid – report FONTERRA SUPPLIERS in Australia were

among the highest paid last season, according to an independent report.

Ian Gibb, of Australian consultancy firm Farmanco, says Bonlac

Supply Company (BSC) farmers were paid the highest milk price in Victoria and Tasmania for most supply patterns in the 2013-14 season.

Bonlac farmers supply Fonterra Australia.

Bonlac and Fonterra have a supply agreement under which Fonterra must pay a milk price at least equal to Murray Goulburn.

Bonlac every year commissions an independent

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audit of milk price paid by Murray Goulburn. This year it audited all major processors in north, east and west Victoria and Tasmania.

Milk prices were compared with Murray Goulburn, Warrnambool Cheese & Butter, Tasmanian Dairy Products, Burra Foods, Longwarry Food Park and Tatura Milk Industries (TMI).

The study reviewed milk supply patterns for a seasonal calving herd and the typical flat supply pattern of a herd with multiple calvings.

Each pattern was then scaled to 80,000kgMS, 160,000kgMS and 320,000kgMS – representing, respectively, farms small (150 cows), medium (300) and large (600).

Bonlac and Fonterra Milk Australia was found the price leader in most regions for most supply patterns, but not to seasonal farms in the north, east and west where TMI, Burra and WCB, respectively, came out ahead, and the flat supply farms in the west, where WCB was the price leader.

Gibb says in competitiveness BSC can claim to have been price leader

in most regions for most supply patterns. “Farmers know milk price is a driver of profit, but from a farm business management perspective the focus should be on profit, not price alone.”

BSC chairman Tony Marwood says it has a responsibility to its supply base to ensure this leading milk price is achieved and that BSC Fonterra suppliers have a clear view on the price paid for the 201314 season.

“The outcome of this report is good news and validates what we said all season,” Marwood says.

“It shows that all our suppliers to Fonterra received at least a competitive price and in some cases even better for the 2013-14 season.

“The 2013-14 season produced record high prices, whereas this season we’re experiencing lower prices because of a challenging market and volatile conditions.

“It’s important that our suppliers focus on what they can control – farm inputs and managing margins – to manage through the cycle and ensure a profitable, sustainable business.”

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weather warms up and humidity rises, risking FE that can milk production and animal health.

DairyNZ recommends starting zinc treatment two to three weeks before the spore growth danger period for maximum protection.

Fungal spores growing in pasture – especially fresh, new grass – are the root cause and spore counts increase where grass temperatures are above 12oC for three consecutive nights. Counts can vary from farm to farm and even between paddocks.

Ballance Agri-Nutrients agro-science team member Jackie Aveling, speaking on behalf of animal nutrition subsidiary SealesWinslow, says with a reduced dairy payout, farmers should be especially alert and adopt a prevention approach to protect production of valuable milk solids.

“It’s a sad fact that often ideal grass growth conditions, such as warm wet weather, are also ideal for facial eczema spores. It is not always easy to detect facial eczema in its early stages.

“Often farmers are unaware of the full extent of a facial eczema problem until it’s too late. For every three in a hundred cows showing clinical signs of facial eczema, that can be the tip of the iceberg with subclinical cases potentially involved up to 70% of the herd.

We know the disease can cause production losses of up to 50%, so we are recommending a preventive strategy as the best course of action.”

DAIRY NEWS DECEMBER 9, 2014

NEWS // 11

Recycle junk, don’t burn

IN BRIEF Global farming head

FARMERS NEED not burn

or dump plastic containers says Agrecovery, responding to a study of farm waste by Bay of Plenty and Waikato Regional Councils.

The study surveyed 69 properties, discovering 2564 tonnes annually – average 37 tonnes per farm.

Graeme Peters, chair of the Agrecovery Foundation, says farmers can recycle, free of charge, the empties that contained their 3000 commonly used products. “This eliminates the need for unsustainable practices such as burning or dumping.”

Agrecovery has 70 drop-off sites and organises collections in regions without permanent recycle stations. They collect directly from the properties of large users.

The farm waste discovered by the BOP and Waikato study included plastics, scrap metal, timber and fence posts, glass, batteries, construction and demolition materials and domestic rubbish.

Property owners dealt with it by burying, burning or storing it on site.

Farmers are urged to recycle plastic containers, free of charge.

A similar study in Canterbury reported comparable results from 53 farms surveyed in 2013.

Canterbury farms together generated 209,000t each year, roughly equal to landfill from Christchurch City in 2012-13. The report says the bulk of that waste (92%) is buried, burned or bulk stored.

Says Peters, “Since their report

was released in 2013, Environment Canterbury introduced a ban on burning agricultural plastics. We believe this was responsible for the 113% increase in container recycling in Canterbury in the first six months following the ban, compared to the same period in 2013.

“It proves farmers will increase their use of sustainable disposal

methods with the right combination of incentives, such as bans and free recycling.”

Agrecovery, a not-for-profit charitable trust, has almost 10,000 farmers and growers using its service. www.agrecovery.co.nz

FONTERRA HAS appointed Alan van der Nagel managing director international farming, replacing Henk Bles, formerly interim managing director since April and now advising for up to six months.

Chief executive Theo Spierings says van der Nagel has had executive experience in internationally integrated dairy companies in emerging markets, and an impressive track record of driving operational excellence, working with multicultural teams and managing large international joint ventures.

“Alan has held senior executive roles with Parmalat in China, and more recently with Almarai Company in Saudi Arabia, the world’s largest fully integrated branded dairy operation which has… 145,000 cows.”

Van der Nagel, a New Zealander, started in dairying here, then took his first senior operational role with the Parmalat Group in Australia in 1989. He remained with Parmalat for 14 years and was based in China for several years as country manager/managing director from 20012003. In 2004 he moved to Saudi Arabia to work for Almarai Company, where he has been group general manager operations since 2008.

Spierings says selectively investing in global milk pools is one of Fonterra’s priorities. He says the purpose of international farming is to provide a high quality, safe and traceable supply of milk to key markets, with China as the short to medium-term focus.

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DAIRY NEWS DECEMBER 9, 2014

NEWS // 13

Fickle weather adds to woes PETER BURKE peterb@ruralnews.co.nz

A VERY mixed season

around the country has posed a range of challenges to dairy farmers according to DairyNZ’s Craig McBeth.

He told Dairy News the season has seen a wide variety of temperatures – hot and cold spells – affecting growth rates.

“As a result farmers have been trying to grapple with what might be a surplus of feed onfarm one week and the next week growth rates will slow down and it ends not being as much of a surplus as they were projecting. That has made it a challenge in deciding on the length of rounds and whether to take silage off or to feed the grass.”

Northland had to cope with floods in July, Waikato had soil moisture levels adequate rather than high, and Southland has a wet, cold spring.

“The wet, cold weather is impacting the ability of the plants in the ground to photosynthesise and therefore transpire the moisture out of the ground. Farmers are challenged by conditions on farm and have needed to make good farming decisions accordingly.”

McBeth says given the nature of the season and the challenges that

lie ahead because of the milk price, farmers need accurate data and must not rely on guesswork.

They must regularly get out and look carefully and closely at what’s happening onfarm – probably weekly. Only that way can they be confident in decision making on pasture management and milk production.

Farmers in some regions have commented on lack of sunlight affecting grass growth. This may lead to less supplements being produced.

“It feels like a season with less growth, so what grass has been grown is going more to cows and less to cutting for silage – not just on dairy farms but support blocks too. If so it could hamper the supply of silage,” says McBeth.

The variable weather may also affect maize crops, many of which are late going in. But McBeth says if the weather improves these may catch up and be all right.

He says there is no sign that milk production is down this season, but he’s unsure whether this is due to increased production by existing suppliers or by new ones coming on stream.

“I’ve heard that some farmers have had reasonably compressed calvings, [raising] demand early in the season for feed. That can make it feel a bit tight.

HOPE FOR THE BEST, PREPARE FOR THE WORST WITH THE payout for this season expected to plummet, McBeth says DairyNZ has been talking to farmers via local discussion groups about their options. The challenge is going to be felt hardest through next winter and spring.

“The large deferred payments this last winter and spring aren’t going to be there. So it’s going to hit cashflows then. We’ll work with farmers through late summer and autumn in early 2015 to help them understand what the variability may be in their farm system and how they can set their system up to cope with that low payout year.”

Location will be the determinant, he says. In the South Island typically a big chunk of farm working expense is for wintering costs and grazing.

Farmers must look carefully at their herds and not winter unproductive cows, which cost money for a poor return.

“Farming is a grass-based system through the spring, you are often on the edge of the supply and demand equation all the time….

You get the feeling you’re a bit tight for feed at times and that’s what farmers have been experiencing this year.”

More grass is being fed to cows and less cut for silage, says DairyNZ.

DAIRY NEWS DECEMBER 9, 2014

14 // NEWS

Leferink is back PETER BURKE peterb@ruralnews.co.nz

SIT TIGHT, ride out the storm

and be ready to harvest again when the time is right. That’s the message from Mid Canterbury dairy farmer Willy Leferink, new as Feds provincial president in that region.

Leferink says notwithstanding the doom and gloom about a low payout this season, farmers need to hang in and wait until the situation improves. The quantity of product being sold now is a far cry from the recent past when at one stage it was up to 55,000 tonnes.

“There must still be a huge overhang somewhere and because the Europeans still can’t supply Russia all that powder has to find a home. It puts a lot of pressure on what we are selling. I find it silly that skim milk powder is going well when it’s the only thing the Americans sell on the open market.”

Leferink says when Chris Allen, the former provincial president, was elected to federation board, he (Leferink) was asked to take on the

Willy Leferink is the New Zealand Farmers Mid Canterbury president.

role of provincial president.

“Chris promised he’d give me a couple of months off which I needed to help out on the farm and get that up to scratch and after that I would take over. For me it’s now a case getting back up with the play on all the nutrient management issues down here which are very complex.”

Also on Leferink’s mind is the Trans Pacific Partnership (TPP) talks which potentially offer

benefits to New Zealand dairy farmers. He applauds the work being done to get an agreement but says there are many behind-thescenes power plays. One option may be to work more closely with the Australians, he says.

After quitting Feds national board in July, Leferink has again been dirtying his hands on his farm, but after a meeting of the MidCanterbury executive he feels he owes it to the province to take the position as provincial president.

“I am looking forward to focusing on Mid-Canterbury and working with the region’s stakeholders. There is a lot going on with Environment Canterbury’s regulatory changes, especially in the Hinds Plain planning process.

“Farmers are a growing force here with agriculture driving midCanterbury’s economy, so there’s a lot of responsibility in representing our growing membership.”

Jesse Chan-Dorman has become provincial vice president and Joanne Burke chair of grain and seeds. @dairy_news facebook.com/dairynews

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Agribusiness is not only for duds THERE IS still a shortage of graduates

seeking entry to the agribusiness sector, says Lincoln University’s deputy vicechancellor business development, Jeremy Baker.

While there are encouraging signs of changing perceptions of primary sector qualifications and careers, a recent Ministry of Education report suggests there is still a long way to go.

The report shows that at bachelor level or higher, only 1.1% of students at New Zealand universities are studying an agriculture-based discipline. Yet at least 60% of the nation’s export wealth comes from food and fibre production.

“The statistics reflect an ongoing concern that insufficient numbers of suitably trained graduates are entering the land-based industries to replace its aging population,” Baker says.

“All the more so considering the increasing sophistication of the primary sector.”

A partial cause is New Zealand’s increasingly urbanised society, resulting in a ‘disconnect’ or unfamiliarity with agriculture or the land-based industries in general.

“It is vital for growth in student numbers… that we find ways to engage urban students. A key message to get across is that there is much more to the primary sector than just farming. We need to show it is a vast sector… science, business and IT disciplines in rural and urban Jeremy Baker

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environments, a multibillion dollar, multifaceted industry of tremendous importance to New Zealand, and with amazing opportunities for students prepared to open themselves up to the possibilities.”

Whether one has grown up on a farm or not is irrelevant, Baker says. Many careers in the primary sector involve working in towns and cities.

The perception that primary sector training is for the less academically gifted is particularly unhelpful. “The [primary sector] is complex and will welcome and reward the very best and brightest.

“We also need to break with a tradition that seems to hold that the ‘doctor, lawyer, architect’ careers are the optimal pathways for the more promising students. It’s a cliché and unhelpful if we are to make the most of the country’s intellectual assets relative to its key commercial interests.”

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DAIRY NEWS DECEMBER 9, 2014

NEWS // 15

Oz dairy sets sight on Indonesia they have a reformist WHILE CHINA is government and part widely touted as a of their platform is bonanza for Australian improving access.” dairy exports, another Repacholi says massive market even Indonesia demands a closer remains largely range of products and overlooked. Indonesia is Australia’s “clean, green emerging as the next reputation” puts it in a big thing for dairy good place to capitalise. exporters.

“The fresh dairy It has grown solidly for ten years and now industry experts believe they are seeing only the tip of the iceberg.

Australia exported 44,000 tonnes of dairy products to Indonesia in the 2013-14 financial year, worth US$202 million.

A new Indonesia market brief produced

by Dairy Norman Repacholi Australia analyst products Australia has Amy Bellhouse says the been exporting to other country is Australia’s markets are also quite fourth largest market desirable in Indonesia, in volume and value. including liquid milk, “Indonesia is a rapidly urbanising economy with UHT, extended shelf life milks, plus milk an increasing demand powders like whey for Western-style and nutritional powders, convenience foods.” bulk ingredients used for Commercial research the industrial market, and analysis manager and formula powders for Dairy Australia, Norman Repacholi, ranks for manufacturing operations.”

Indonesia as one of the Import rules and best markets available to Halal certification bears Australia in the broader on business in Indonesia, Asian region, “a massive but these were not market with plenty of insurmountable. potential that will grow “Products that we over the next 10-15 make are acceptable in years.” their quality and flavour In fact, Australian profile and Australia has dairy farmers aren’t a good reputation in its producing enough safety record and the to meet the possible type of milk it produces. demands. “Its potential “We already do some can probably grow more business there. In any than Australian milk South East Asian nation production can grow it’s good to have a local in the short term,” distribution partner Repacholi says. and to investigate the He agrees Indonesia opportunities and work has been overshadowed out if they suit your by the booming Chinese business.” market, but it could find Repacholi sees more prominence with potential for more live the recent slight cooling heifer exports to several of demand in China.

South East Asian markets “China which aspire to selfunderstandably gets all sufficiency. “They’re the attention because looking for breeding it is such a large and stock and expertise.” rapidly growing market, but there are plenty of The Indonesia other opportunities in market brief says dairy Asia, and in Vietnam and exports from Australia to other South East Asian Indonesia have increased countries. by 8% over the past five “We’ve got reasonable years in volume terms access to the market at but a massive 70% in the moment and that will value terms. The biggest likely improve because growth in export volume

was skim milk powder (56%) and whey powder (21%). Exports of whole milk powder, cheese and butter have declined.

Global dairy imports to Indonesia have increased by 16% in the past five years. Annual per capita consumption of fluid milk has

increased from 1.32kg to 1.45kg in 2000-2012 and continued growth is expected.

“Demand for dairy products in Indonesia is expected to continue growing faster than production, creating growth opportunities for Australia due to our

relatively short shipping times and low freight rates,” the report states.

“However demographics make Indonesia a target market for all major exporters.”

The ASEAN - Australia – New Zealand Free Trade Agreement will eliminate tariffs on 96%

of Australia’s current exports to ASEAN nations by 2020.

Dairy Australia is holding seminars with key South East Asian markets, hosting several inbound mission programmes, and has launched a scholarship scheme with the

Victorian Department of Environment and Primary Industries that will bring up to 15 dairy leaders a year from the South-East Asian region to study dairy production and manufacturing in Australia. @dairy_news facebook.com/dairynews

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DAIRY NEWS DECEMBER 9, 2014

16 // NEWS

Higher demand for AB

Malcolm Ellis, LIC

LIC EXPECTS to get more cows in-calf at Christmas in response to high demand for its short gestation genetics offering, and as farmers find new ways to maximise the benefits this season.

The co-op says it has set a new semen record this season – 142,006

straws for artificial insemination dispatched from its Newstead laboratory in one day. At least five million straws will be processed by Christmas eve when the peak time usually ends.

“It’s been a cracker season here and the massive response to short ges-

tation has been a huge part of that,” says Malcolm Ellis, short gestation length (SGL) breeding programme manager.

“For farmers, the first priority for their breeding season is matings…. However, as they plan for zero use of inductions, empty rates are at the forefront

of their minds.

“This year’s SGL dairy bull team will naturally deliver offspring an average 10 days earlier next season, significant for a farm’s calving pattern and production.”

Orders for SGL are at least double last season’s total, with more coming in each day as farmers incorporate the short gestation solution into their existing mating plans, either at the tailend of AB before the bulls go out or after the natural mating period.

“Farmers have been quick to see the merit in adding a period of SGL

into the New Year.

“Starting AB again with short gestation makes a great deal of sense to reduce the number of empty cows without extending the calving spread next spring.

“I know one farmer who is planning to pull the bulls out of his multi-herd 2500-cow operation on boxing day, and get the tail paint back out to restart AB for a further 10 days of SGL matings.

“That’s the earliest the bulls have ever been taken out of these herds, as they plan to operate without inductions next season.

They are estimating 250

“Farmers have been quick to see the merit in adding a period of SGL to the end of their standard AB plan.” to the end of their standard AB plan. The extra days in milk will be gold next spring, but the real advantage is the ability to take the pressure of the bulls. A 500-cow farmer doing four weeks AB often doesn’t calculate 234 nonpregnant cows are waiting for the natural bull team.

That’s 12 cows cycling a day. But by adding two weeks of SGL matings, the bulls will only be dealing with 5.5 cows a day which is more achievable and in many cases more economical option.”

Traditionally farmers mate their herd to AB for a period before finishing with natural mating bulls, but the large number adopting a post-bull strategy with SGL this season has required the co-op to extend its peak AB season

cows still won’t be in-calf at that point, but extending the mating period will result in 65 further pregnancies, and with those cows calving 10 days earlier next spring, calving duration will not be affected.

“If the difference in value between an in-calf cow and an empty one is $1200, then those extra 65 pregnancies equate to a $78,000 gross benefit with reduced wastage from empties. Those numbers make the cost of additional AB straws look a lot more like a critical business investment.”

The co-op’s SGL offering costs an average $12$17, based on the co-op’s Premier Sires sliding scale pricing. @dairy_news facebook.com/dairynews

IN BRIEF New semen centre PRIMARY INDUSTRIES Minister Nathan Guy will next week officially open CRV Ambreed’s new domestic and export-approved bovine semen production and logistics centre on the outskirts of Hamilton.

The purpose-built facility gives the company extra capacity in bovine semen products. It has a semen collection facility and laboratory, storage space for export and domestic products, a warehouse with farmer AI banks and 38ha of grazing.

Angus Haslett, CRV Ambreed managing director, says the centre meets “the highest standards [in] domestic and export compliance, animal welfare and… increasingly stringent biosecurity requirements.”

DAIRY NEWS DECEMBER 9, 2014

NEWS // 17

Mining heiress gives hope to Qld farmers GORDON COLLIE

AUSTRALIA’S

RICHEST

woman has thrown a lifeline to Queensland’s ailing dairy industry.

Gina Reinhart, whose family has large mining interests, is the major shareholder in the A$500 million farming and processing venture planning to supply the Chinese market. Asian partners will take about 30% equity.

Hope Dairies will have majority Australian ownership via Reinhart’s Hancock Prospecting. equity. It plans to process 150m L and to have 480 full time staff.

The partners made their plans public when signing an understanding with the Queensland Government on the sidelines of the G20 Summit in Brisbane last month.

The plant will make infant formula, UHT milk and other products. It will be located between the South Burnett and Mary Valley farming regions on 5000ha.

Milk will come from dairying hubs with 16,000 cows. The company says it will buy about 30% of its milk from the region’s dairy farmers.

Queensland Dairyfarmers president Brian Tessmann says

the project will be a welcome boost, opening access to the Chinese market and bringing new buying competition into the state.

“We’ve lost a lot of our manufacturing capacity over the last decade and a half, simply because there has not been the milk supply.”

Queensland producers had been forced to compete with seasonal milking patterns in southern states, but the new facility would be looking for year round production and manufacturing to supply markets.

“This will be a good option for us if we can get a reasonably competitive price for our milk,” says Tessmann who farms at Kingaroy, close to the new plant.

Reinhart says her family’s longstanding business relationships in Queensland helped clinch the project ahead of interstate contenders.

“Why Queensland?” she said, answering rhetorically, “Why not?”

“We’ve been so welcomed in Queensland. The state government has supported our planning and helped make sure this project happened here.”

Reinhart says her family has long been in pastoral and farming industries. She is in a joint venture

Australia’s richest woman Gina Reinhart is tapping into the dairy industry.

to export premium beef from Western Australia to Asia.

Reinhart says the project was first discussed at a Christmas lunch in Cambodia, attended by Dave Garcia, the new Hope Dairies managing director. “Dave is an old friend and when the topic came up we met again the following day and hatched the plan.”

Garcia is an American who has been working in China for the past 27 years.

He intends to relocate from Hong Kong to an office in Brisbane to begin overseeing the Hope Dairies project. @dairy_news facebook.com/dairynews

NAIT 1, 2, 3…

LIC figures on better data flow LIC HAS bought 18.8% of the shares in the cloud-

based accounting firm Figured. An LIC director will sit on its board.

Launched in February 2014, Figured’s main product Figured on Farm is a cloud-based livestock reporting and cashflow forecasting package that integrates with Xero to allow livestock transactions, income and expenses to flow easily between both systems in real time.

LIC chief executive Wayne McNee says the deal will help improve the flow of information to farmers, accelerating the integration of the Figured on Farm accounting package with LIC’s farm management software Minda.

“We’ve been impressed by Figured’s technology innovation, team and relationship with Xero,” says McNee. “[This] aligns with our strategy to improve the… productivity of our farmers.

[It enables] two-way integration between our systems, allowing financial data to link seamlessly with the operational herd and farm information.”

Figured chief executive Paul Reid says his firm’s proven innovation in farm accounting and early market “traction” was a compelling proposition for LIC. “By offering farm accounting in a cloud-based platform we enable the whole farming team to work together to monitor, re-plan and review financial performance and improve farm profit in real-time from any location.”

Xero’s rural strategy lead, Ben Richmond, points out that Farming in the Cloud was first to bring realtime, single ledger reporting to farmers. “This partnership between Figured and LIC validates Farming in the Cloud and the work Figured is doing.”

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DAIRY NEWS DECEMBER 9, 2014

18 // NEWS

Industry on the blocks in race for talent

Tim Mackle

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curriculum this year with another 85 signed up for next year. Seven other schools are involved and will offer the new subject in 2016.

A $2 million partnership with DairyNZ and Beef + Lamb New Zealand, and others, is helping pay for the curriculum.

Mackle emphasised the enormous scale of change needed in dairy to meet land and water challenges.

“To get ahead of the game… and move away from reactive mode, we need to move fast and on time. [If we don’t] we will undermine our efforts to climb the value add ladder with our dairy products.

“It will take a

substantial number of quality people to deliver the change; skilled farmers and their advisors are at the core.

“This is about jobs for scientists, economists, environmental experts, marketers, communicators, business advisors, strategists, trade experts, geneticists, animal health experts, technology and computer scientists…. We need you all in our industry.”

DairyNZ, MPI and BLNZ are writing a ‘people power report’ to set out where we need to be and how to work together.

We need educators now to help us build the workforce for the future, says Mackle.

The St Paul’s programme will develop curricula for senior secondary schools to get facilitate the best and brightest into research and professional careers in the primary sector.

Mackle says the programme is “a centre of excellence. And that’s not an aspiration, it’s a mission to be the best we can as an industry, a sector and a country exporting food.”

He says DairyNZ is delighted to be supporting the centre. “We all need to work together on this.”

Primary Industries Minister Nathan Guy launched the programme. @dairy_news facebook.com/dairynews

Rethink sales pitch to youngsters

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being urged to think about how better to attract and retain the right people.

DairyNZ chief executive Tim Mackle says the big question is ‘how are we going to compete in the contest for talent with the Western world?’

“Before the global economy recovers – and it will eventually – we need to be thinking about how that pressure might intensify and how we get ahead of the game now.”

He said this last month at the launch of a centre for excellence for agricultural science and business at St Paul’s College, Hamilton.

The college has had 48 students trial a pilot

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WAIKATO MILKING Systems chief executive Dean Bell says New Zealand must rethink how to ‘sell’ the sector to young people.

“Agriculture today has many career options for young people, ... and dairy technology has been at the cusp of innovation and growth. But to maintain that momentum we need the brightest and best.

Investing in those young people is an investment in the future of this company, New Zealand agriculture and the economy. “[About] 100 graduates enter New Zealand

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primary industries each year but we need ten times that if the sector… is to achieve its potential.”

Waikato Milking Systems is a partner in the St Paul’s College centre for excellence. It has hosted visits from senior St Paul’s faculty and current Year 13 students.

The school’s principal, Grant Lander, says much of the agribusiness curriculum development has been with agri organisations, universities and business. “Everyone is excited at what we have done so far and what we can still achieve…. we’re helping create something of national significance – innovative and ground breaking.”

Lander says secondary schools lack a structured, national programme to encourage students to study agricultural science and business in preparation for their tertiary study.

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DAIRY NEWS DECEMBER 9, 2014

WORLD // 19

Irish farmers ready for quota removal PAT O’KEEFFE

IT’S AN exciting time for Irish and European dairy farmers. Having been constrained by European milk quotas since 1984, the shackles will finally be removed on April 1, 2015.

However, the mood is tempered by two major issues: the prospect of a very weak dairy market in the first half of 2015 and the high risk of a massive superlevy bill for exceeding production in the 201415 milk quota year, which ends on March 31, 2015, two months after most cows calve next spring.

Ireland has a national milk quota of 5.4 billion litres. If we exceed that level of production in a milk quota year, which runs from April 1 to March 31, farmers incur a fine of 28.6 cent per litre of milk for each litre about their individual quota. At present the country is running about 7% above quota, so the prospect of a record fine of up to €100m looms.

growth in milk production by 2020. It sounds ambitious, but there is a lot of evidence to suggest that it will be achieved – assuming milk price bounces back and farmers are profitable, of course. Dairy processors such as Glanbia, Kerry and Dairygold have invested close to €500m to expand their milk processing capacity and move up the value chain.

The reason for the optimism is Ireland’s inherent natural advantages for grass-based dairy production. In the 20 years prior to milk quotas, milk production in Ireland grew by over 3% per year – a pace far higher than most countries in the world.

Grass-based springcalving systems dominate, although about 15% of dairy farmers milk cows through the winter to produce fresh milk for the retail shelves and cream for products such as Baileys Irish Cream liqueur.

Infant nutrition is also a key sector in Ireland.

farms milked cows, so the scale of exodus has been large. Now, numbers are steady at 18,000, although the volatile reality of global markets is likely to claim some casualties

“The reason for optimism is Ireland’s inherent natural advantages for pasture-based dairy production.”

While we only produce around 1% of the world’s milk, an estimated 15% of infant formula is sourced here. Multinational players Danone, Abbott and Nestlé all operate largescale production facilities that utilise Irish dairy ingredients. Butter, cheese and powders are the other main outputs, with the German butter market particularly important for Kerrygold, a brand owned by the Irish Dairy Board (IDB). The IDB is a marketing co-op that exports on behalf of Ireland’s 15 dairy cooperative processors.

A generation of farmers have been locked out of dairy farming for 30 years, with milk quotas presenting a huge barrier to entry.

Many existing farmers left the business due to frustration as they could not expand. When milk quotas were introduced, 63,000

Irish processors like Kerry are boosting plant capacity ahead of April, 2015.

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In recent years, the European Union (EU) allowed production to increase by 1% per year and the more ambitious Irish farmers have been gearing up for growth.

More dairy sires have been used instead of beef bulls.

Even within a quota environment, the national dairy herd grew by 3.4% this year.

About 18,000 farmers milk 1.1 million dairy cows in Ireland, with surveys suggesting that twothirds will expand their dairy output after milk quotas are removed. There will also be some new entrants – mostly young beef farmers making the switch from suckler cows (of which we have a herd of one million).

In 2010, the industry, in partnership with the Government, agreed a strategy for the agri food sector. A headline target was 50%

in the coming years. New entrants are already bringing a vibrancy and energy to the business.

• Pat O’Keeffe is the dairy editor with the Irish Farmers Journal.

boosting productivity and milk quality.

You could be up and running this time next year, wondering why you didn’t do it sooner.

Talk to your local DeLaval dealer today. Call 0800 222 228 or visit www.delaval.co.nz

DAIRY NEWS DECEMBER 9, 2014

20 // WORLD

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recent signing of the free trade agreement between Australia and China includes the hope that China will be the main destination for Australian dairy exports in the next 10 years.

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access to the all-important infant formula market in four years, and all other dairy products within 11 years. What does this mean to the average dairy farmer in the next three years? Nothing.

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come as export heifers, and good quality heifers at that. As a dairy farmer, you should consider China as your number one destination for dairy heifers, as the returns can be up to 50% higher than from Australian buyers.

China can become selfsufficient in dairy within five years, and a competitor on world markets within ten years.

They have the technology, land, climate and feed to become a dominant player.

For every dairy cow in Australia, there are nine dairy cows in China, and each year China imports more cows. Australia exports large numbers of cows, at better returns than farmers would receive in Australia. If it wasn’t Australia exporting cows there, it would be other countries – New Zealand, US, Canada and the northern hemisphere.

China’s demand for dairy is increasing but it is along generational lines.

Overnight change to dairy from rice-based meals will not occur. It will be a generational change, starting in China with infant formula, on which tariffs will not be reduced for four years.

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Prime Minister Tony Abbot and Andrew Robb signing the free trade agreement with Chinese President Xi Jingpin and Minister for Commerce Gao Hucheng.

Companies intent on in China grows, they will marked names. Many Ausentering China in the next tralians have bought fake start buying more dairy four years must form close Chinese products knowing product, but it will take alliances with Chinese years. full well they are fake. dairy companies. Most Chinese tastes are Australia is a small fish prefer a 50/50 joint venso different from Ausin a big pond in the global ture, and by joining with a dairy market. Instead of tralians’ that it will be Chinese company you get difficult to achieve sametrading in commodities local market access, local product manufacture. We that are turned into other have to design products in other foods for Chicountries, we should “China can become nese tastes, target more growth not Australian self-sufficient in dairy of finished prodtastes. ucts with a longer within five years, and Over 95% shelf life, including a competitor on world of all liquid milk, infant formarkets within ten years.” UHT milk in China mula, ice cream and is bought as yoghurt. customers, distribution UHT milk, which is the In Hong Kong recently and recognition of our opposite to Australia I had great pleasure in branding. where fresh milk makes seeing Pauls Custard Over the next four up 95% of our sales. The and a good range of Bulla years, Australian dairy distribution channels in Dairy products, including companies simply need to sour cream, yoghurts and China, cumbersome and grasp joint ventures with difficult, will not favour cream cheese. fresh milk. A lot of product open arms in many a difThe FTA has been conis delivered on bikes; road ferent province and stick cluded but work now with successful standard congestion is massive. starts on implementation, Australian dairy brands. and ensuring we gain the Joint ventures will best returns to our farmer help grow these brands in suppliers.

China and as China conFarmers can benefit by tinues to become a comexporting dairy heifers, petitor on the global while dairy companies put marketplace, our brands into place successful and can be used in China proven JVs with large and under license where comsuccessful Chinese operapanies can grow their tors, not the fly-by-nightincome, be it from locally ers. made product in AustraWe have a great induslia, or product made in try, with fantastic opporChina using our names. tunities, we need to Joint ventures also elimicapture them, and implenate the problem of dealment them correctly to ing with too many traders, ensure success and, most who take a cut on the way importantly, dollars in through, to the detriment your pockets. of returns to farmers.

• Darryl Cardona is Manufacturers will Australia dairy processor, need to also ensure tight United Dairy Power’s chief control of their tradeoperating officer.

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DAIRY NEWS DECEMBER 9, 2014

WORLD // 21

Milk prices tipped to recover in six months THE INTERNATIONAL

Dairy Federation (IDF) predicts milk prices will stabilise in the second quarter of 2015.

The global dairy sector organisation says farmers will respond to lower milk prices by cutting production; this will have its full effect on prices next year.

The IDF made the comments in its World Dairy Situation report for 2014, released last month.

Prices on Fonterra’s Global Dairy Trade auction have fallen 50% since February; milk companies are dropping forecast payout.

Last season most companies paid out record milk prices to farmer suppliers.

The IDF says the turning point in the market was reached at the beginning of the year. Prices are at the level of the previous turning point in 2011-12, however production remains strong.

“While milk producer prices and feed prices are favourable in combination with good weather conditions, there is no chance of lower production and price recovery. It is only this summer (New Zealand winter) that producer prices started to come down.”

Strong milk growth has been recorded in key markets during the first six months; EU production was up 5.1% over the same period last year, US was up 1.7%.

The IDF expects total milk production this year to be up 3% over last yearan above average growth.

However, next year’s production is forecast to grow 2% as farmers respond to lower prices.

In 2015, trade should be expected to regain its normal, long-term average growth pattern, provided that key trade relations have more or less normalised by then, it says.

This means trade volume may grow by another 4% to exceed the 70 million tonne milk equivalent mark for the first time.

“International projections expect a population of 9 billion inhabitants in 2050, and thus an increased need for food in the coming decades,” the IDF says.

According to the OECD/FAO Agricultural Outlook 2014-2023, the global average per capita dairy consumption should increase by 13.7% between 2011-13 and 2023.

“Driven by rising population, income levels and urbanisation, consumption should increase all the more in developing countries.”

It says 2013 was an exceptional year, driven mainly by weather conditions in the beginning of the year.

“As a consequence lagging milk production generated a lower avail-

INDIA TO OVERTAKE EU INDIA IS tipped to become the biggest milk producer surpassing the EU, according to the International Dairy Federation.

Almost total milk production in India is consumed fresh; only small quantities are processed.

The IDF doesn’t expect the end of the quota regime in 2015 to have a significant effect on total EU production.

It may lead to further concentration of milk production in some countries of the bloc, it adds.

The IDF expects growth in New Zealand dairy exports to decrease compared to the last 10 years; stronger currency, increasing production costs and environmental restraints will be responsible.

“Nevertheless, growth of production remains stronger compared to the other big exporters; extra production in New Zealand is almost totally destined for export,” the IDF says.

ability of milk for exports and, given the continuous strong global demand, led to exceptionally high average prices.

“Throughout the year dairy market prices

remained at elevated levels. As a result producer prices for raw milk were exceptionally high. In Europe as well as in New Zealand, dairy farmers had never received such

a high milk price as they did throughout the course of this year. Similarly, the milk price in the US was relatively high, even if it remained below the record level of 2011.”

The IDF is predicting a bounce back in dairy prices soon.

DAIRY NEWS DECEMBER 9, 2014

22 // OPINION RUMINATING

EDITORIAL

Cool it or risk losing it

MILKING IT...

GIA gripe SO ANOTHER sector has signed a Government Industry Agreement on biosecurity. Minister Nathan Guy trumpeted “it means that apple and pear growers and the Ministry for Primary Industries (MPI) can work together and make joint decisions on readiness and response…”. There was nothing stopping them doing this before, other than MPI’s arrogance. His comments highlights MPI’s appalling attitude.

School bus realism RURAL WOMEN NZ needs to get real with its 20km/h school bus speed limit signs. That speed may be the law but this is a case where the law really is an ass. Slow to 20km/h on a state highway and following drivers – cars, trucks, and even tractors – fly past creating even more of a hazard. The answer is traffic slowing, education and management – of children and drivers. Make the speed limit past a stationary bus half what it is for that road, e.g. 50 in a 100km/h zone, and enforce it. Meanwhile make kids stand at the stop until the bus is long gone.

A marker down the road would help. “Move before I pass the sign and you’ll die,” drivers might say. That should get the message across.

Entry interest THE DAIRY Business of the Year is a great competition for benchmarking your farm performance against others. With its focus on financials topped up with ratings for people and environmental management, it cuts through the debate about systems to compare what really matters – the money made.

The question is, who will dare to open the books on last season’s bonanza?

Showing you made a reasonable profit in a modest payout year is one thing; revealing operating profits from 2013-14 that could top $10,000/ha with the industry now staring down the barrel of a $4 payout is another. Every cost is under the cosh and even the earlybird entry fee of $395 could be a barrier for some, but that would be short-sighted given the value likely to be gained through the competition process.

Can’t beat the feeling COCA COLA’S foray into milk is ruffling feathers.

The drinks giant is under fire for its latest advertising campaign which shows women dressed in milk.

The four naked women in high heels are depicted in flirty ‘milk dresses’ as part of Coca-Cola’s Fairlife milk campaign. One appears in the famous Marilyn Monroe pose.

Coke has marketed the product as a premium milk brand, available only in the US, lactose free and with 30% less sugar and 50% more protein.

IT’S NOT something dairy farmers needed right now but the message is clear: change or risk losing your competitive edge in the global market.

Changes to milk cooling regulations proposed by MPI may be relatively minor. However, it will require farmers spending $5000$100,000 to become compliant.

To MPI’s credit, farmers have been given ample time: August 1, 2016 deadline for new farms and those upgrading cooling systems.

Enforcement on all other farms starts January 1, 2018.

New Zealand milk is high regarded in the world for its quality and food safety credentials. This is despite our temperature rules for raw milk being less stringent than our major trading partners.

In New Zealand the milk temperature must drop to 7˚C within three hours of milking and remain at 7˚C until collection, similar to the US. In China it must get to 4˚C within two hours of milking, and the same in Russia. In Australia milk temperature must be 5˚C within 3.5 hours of commencing milking. In the EU, 8˚C after milking and 6˚C degrees if not collected daily.

The world is today a sophisticated marketplace; consumers demand quality and safe dairy products and sustainability throughout the food chain.

Food companies are fixated on the sources of food. The world’s largest dairy company, Nestle, audited 50 dairy farms in the South Island this year, in its watch on food safety and quality. Chinese auditors regularly visit our factories and farms.

During these audits overseas regulators ask why our milk cooling is out of line with the rest of the world. We’ve got away with by arguing that our milk quality is above everyone else’s. But producing the best quality milk is not enough for the rest of the world; they want stringent regulations.

The focus on sustainability comes at a cost to farmers. Not all New Zealand farmers will need to spend $100,000 on their farms.

There is no one-size-fits-all solution; some small farms will find old ice banks to cool their milk. Some will face a problem of power supply; adding a milk cooler will require upgrading the supply and paying more for electricity.

With the payout under severe pressure, farmers could do without this extra regulatory burden. But they have little choice. As the world’s largest exporter of dairy products we must lead in food quality and safety.

Publisher: Brian Hight ...................... Ph 09-307 0399 Head Office: Top Floor, 29 Northcroft St, Takapuna, Auckland 0622 Phone 09-307 0399. Fax 09-307 0122 Postal Address: Published by: Printed by: Contacts: Advertising material: Rural News on-line: Subscriptions:

PO Box 331100, Takapuna, Auckland 0740 Rural News Group PMP Print Editorial: sudeshk@ruralnews.co.nz davef@ruralnews.co.nz www.ruralnews.co.nz subsrndn@ruralnews.co.nz

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Dairy News is published by Rural News Group Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Rural News Group Limited.

NATIONAL SALES MANAGER: Ted Darley ........................... Ph 07-854 6292, 021-832 505 ted@ruralnews.co.nz AUCKLAND: Stephen Pollard................... Ph 09 913 9637, 021 963 166 stephenp@ruralnews.co.nz WELLINGTON: Mark Macfarlane ............... Ph 04-234 6239, 021-453 914 markm@ruralnews.co.nz SOUTH ISLAND: Kaye Sutherland ..............Ph 03-337 3828, 021-221 1994 kayes@ruralnews.co.nz

DAIRY NEWS DECEMBER 9, 2014

OPINION // 23

Don’t undervalue your workers CHRIS LEWIS

MUCH COMMENT

surfaces in the media about how much farmers should be paying staff and whether they are paying enough.

Here is one correct way of paying staff, but this is only an example. No one size fits all and you may need to make changes to suit your individual circumstances and employees.

Before you start to hire staff, do a staff budget as you do for feed, showing deficits and surplus each period. If your staff requirements are anything like mine you will have found a need to hire additional workers for spring to manage the additional workload and time off needed through calving.

The budget or roster will show expected hours staff members need to do weekly, and then you need to decide what’s fair and reasonable without exceeding hours.

However, most farmers like me expect staff to stay behind to do a late calving with the vet; this is something you can never budget on.

The hardest job starts when you hire staff. At this time you should show the job description, hour sheets, hours of work, health and safety, drug and alcohol policy, farm policy and Federated Farmers contracts. From this you will set the standard and be clear on your expectations.

When advertising for staff on fencepost, don’t advertise maximum hours but advertise one year’s average hours.

Showing 65+ hours a week as a prospective job and then saying no suitable Kiwis were available… well, you need to look in the mirror. Saying there is a great roster with hours ranging from 40 in winter, peaking at 55-60, sounds a lot better and you’re likely to get more Kiwis applying.

Housing is also important. A great house to rent at $150-$300

should be optional; if you still can’t get suitable people with this, then overseas staff may be an option as immigration officials will look more kindly on you. Their market test will have to be similar to your actions in the market as well. They are hard to please, so you have to show you have done it right from day one. This is not a cheap option in my experience, as permit fees, advice and paying higher wages always add up. However, hiring great staff is an investment not a cost.

When working out salary it is important to make sure you are at a suitable hourly rate for the level of experience you need.

Farm assistants are usually $15-$20 per hour.

Make sure you read the new Federated Farmers remuneration report, early next year, to get an idea of what the benchmark is. If you pay minimum wage, expect minimum output, and don’t complain to your neighbour.

Farming is a great career, so don’t undervalue your staff. Trying to attract top staff should be your business aim.

A lot of my friends and family would say to me that rents are low in the country compared to Auckland, which averages $550 a week, or Hamilton’s average of $370 per week. This is the advantage of living on farm with no travel costs.

My message is: don’t minimise the great opportunity there is on farms by advertising a job that doesn’t reflect the vast majority of great farming jobs out there. There are 35,000 people out there working on dairy farms, according to DairyNZ statistics. While there are a few ratbag employers and employees, almost all get on with the job and do a great job of producing for the nation’s biggest export earner.

I love farming. I am passionate about it and see a great future in it for my family. However your staff may just see it as a journey

from one adventure to the next. As long as the work is incentivised, motivating and enjoyable, they will do a great job. With flexible rosters, it will be a win-win

for everyone.

I know from employing seven staff that what I have explained is never going to be a simple exercise. Just like anything in

life, experience is what will teach us to be better employers and farmers.

• Chris Lewis is Federated Farmers Waikato provincial president

Chris Lewis

DAIRY NEWS DECEMBER 9, 2014

24 // AGRIBUSINESS

Faster feed for farmers New marketing guru for SOE FEED SUPPLIER

SealesWinslow has spent $10 million to get its products to farmers faster.

SealesWinslow, a subsidiary of Ballance AgriNutrients, has upgraded its Morrinsville feedmill and distribution centre; facilities in Ashburton and Wanganui are also being upgraded.

Ballance chief executive Mark Wynne says the investment supports farmers to lift production and productivity.

“The Government has ambitious goals to double primary sector exports by 2025 and we all know about the growing demand for food in emerging markets where wealthier consumers are spending more on what they eat at home and more on eating out.

“We need to increase production from the same amount of land, and leave that land in better shape than we found it for future

STATE

From left Graeme Smith, Ballance, Ray and Bev Seales, founders of Seales business, and Ballance CEO Mark Wynne at the refurbished Morrinsville facility.

generations. Taking advantage of these opportunities starts on the farm with well-fed animals reaching their full potential. Good nutrients in the soil and in feed are the key.”

Ballance general manager animal nutrition Graeme Smith points out “continuity of supply and

quality are crucial. Our investment means we can make more, make it better and make it faster.”

He says enhancements to production have been supported by provisions for smarter storage and distribution solutions and specialist support – animal nutrition advisors help-

ing customers ensure best results onfarm.

The upgrading also includes better information systems to help order tracking and production planning, and better manufacturing plant process control systems. @dairy_news facebook.com/dairynews

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The new position has been created to lead Landcorp’s drive to differentiate and improve the value of its products sold to global customers.

Risell was previously marketing director of advanced nutrition in Fonterra’s global brands and nutrition division.

Landcorp chief executive Steven Carden says Risell is an exceptional addition to the company’s commercial team.

“This is a new and important role for Landcorp and we’re delighted to have someone of Sarah’s calibre on board.

“She will work closely with our meat, milk and fibre partners to stimulate and meet demand for our products in global niche markets. This work is key to our strategic drive to take a more active and market-led role in the value chain with a view to getting closer to end customers.

“Sarah’s knowledge of emerging markets and specialty products will help Landcorp identify niche customers internationally who are prepared to pay

more for the novelty of what Landcorp offers.”

Risell is experienced in developing and growing premium value dairy categories in Sarah Risell major and emerging global markets including Asia, Latin America, Europe and Australasia.

“Sarah brings a new perspective to our business and her experience in marketing and innovation internationally personify the kinds of people New Zealand agriculture needs more of in our industry,”says Carden.

Landcorp is New Zealand’s largest farmer; it owns or manages 137 dairy, beef, sheep and deer farms from the Far North to Southland. With 1.6 million stock units on 376,942ha, it produces around 18,000 tonnes of MS, 10,000 tonnes of sheep meat, 10,000 tonnes of beef, 3,500 tonnes of wool, 2,500 tonnes of venison and eight tonnes of velvet per annum.

DAIRY NEWS DECEMBER 9, 2014

AGRIBUSINESS // 25

US mega farms offer lessons THE HIGH-INPUT

housed dairying that predominates in the US should be a pointer for New Zealand farmers on managing such ventures, says Crowe Horwarth managing principal Neil McAra, Southland.

McAra, recently home from a GEA/ANZ tour of farms in Wisconsin (a leading dairying state), says the visit underscored that New Zealand farmers must be clear on what they want to achieve by spending capital.

“They must know how their international competitiveness stacks up against the US because their farmers are using mega farms, with 2000plus cows, to sell into the

same markets we do,” he says.

These mega farms are competitive due to scale (40% of the US dairy supply), precision agriculture, modern technology, cheap labour (90% Hispanic, paid NZ$11.4015.90/h), lower capital expense (US farmland half the price of NZ) and farming systems that suit the environment and economy.

“NZ land cost [requires] farmers to consider the return on investment in, e.g. irrigation systems, feed pads, cow houses and automated milking,” says McAra. Also affecting spending decisions are skill require-

Visitors flock to farm open day LINCOLN UNIVERSITY last month opened its dairy farm (LUDF) to 900 visitors, with a display of how to turn ‘sunshine into food’.

Some 350 Year 9 and 10 students from nine secondary schools took a guided tour of the science and business of dairy farming. They watched milking at 2.30pm.

Visitors got insights into photosynthesis, soil types, irrigation, pastures, cows, milking, and how milk is collected and processed for export. They also sampled free dairy products such as cheeses, yoghurt and icecream.

“The purpose of the open days is to connect visitors with the transformation of ‘sunshine into food’ and answer their questions regarding the science and technology of producing milk on farm,” says Ron Pellow, executive director of SIDDC. “We started the LUDF farm open day last year and added a specific event for secondary schools this year.

Visitors often want to view cows being milked… [and to] enhance their connection to where and how our food is produced.”

The 160ha 560-cow farm is run by the South Island Dairying Development Centre (SIDDC) as a commercial demonstration farm, showing best practice dairy farming. SIDDC is a partnership of Lincoln University, DairyNZ, Ravensdown, LIC, Plant & Food Research, AgResearch and SIDE. “LUDF… aims to increase productivity onfarm without increasing the farm’s environmental footprint. This makes the information that comes out of SIDDC relevant for farmers and the farm itself the perfect place to open up to the public,” says Pellow.

ments, setting realistic production budgets and environmental management, he says.

NZ farmers can counter the US threat with innovation and precision agriculture, up-skilling employees, leading well, adapting economically to manage environmental aspects, and by consolidat-

ing farms.

But McAra cautions that poorly managed highinput systems generate less cash than poorly managed low-input systems. DairyNZ research shows that fewer than 5% of farmers profit from running intensive systems.

Operating profit is the key to farm success, he

says. Low operating costs/ kgMS and high production/ha lift profit.

“Generally it takes 1kgDM to produce 1L of milk, so it’s essential to choose the cheapest, most efficient feed, especially in a low pay-out year when, based on the current milk price forecast, farmers will only receive 45c/L.”

Neil McAra

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DAIRY NEWS DECEMBER 9, 2014

26 // AGRIBUSINESS

Price cycle set to turn in 2015 JOHN DROPPERT

FOUR MONTHS ago, we considered several months of downward movements in dairy commodity prices on international markets.

At that stage, the average GlobalDairyTrade (GDT) price was at US$3309/tonne – an average fall of 34% across all products from the February peak.

Since then, the GDT average has dropped a further 23%, reaching US$2561/t at the November 18 event.

Much has happened in the market since the start of August, the most dramatic and unexpected being the announcement by the Russian government of an embargo on food imports from the EU, US, Canada, Australia and Norway (in addition to Ukraine, banned in July).

The ban’s direct impacts on Australia are largely confined to denying sev-

eral processors with Russian-approved plants a premium-paying butter market.

Indirectly, many feared that some of the 260,000 tonnes of cheese exported to Russia by the European Union each year would be dumped on world markets, including Japan and South East Asia.

Profitability in these markets has already been eroded in recent years by price competition from US exports, often subsidised under the Cooperatives Working Together (CWT) industry program.

It remains too soon to assess how well-founded such fears were, with the latest round of price negotiations in Japan still underway at the time of writing.

So far however, the worst fears have not been realised, and although cheese prices have adjusted in line with the broader market, the outlook seems to reflect less downside potential than a month ago, with some expecting values

With whole milk powder prices also depressed, New Zealand’s processors are increasing SMP output, says an Australian analyst.

could remain supported around current levels in the near term.

The commodity most impacted by the Russian ban has been skim milk powder (SMP), which on GDT has lost 52% since February, including a 35% drop since August.

Much of the European milk that would have been destined for Russia in the form of cheese has been directed to SMP in recent months, boosting supply in a falling market. Other factors are at play too, however.

With whole milk powder (WMP) prices also depressed, New Zealand’s processors are also increasing SMP output, while recent corrections in the US domestic market are bringing American suppliers closer to export competitiveness.

Demand is reportedly healthy and sizeable volumes of product are changing hands, but in the words of some traders, there is ‘just too much product around’.

The reason so much SMP is being produced is to do with milk fat products, for which skim milk is a by-product. Butter, anhydrous milk fat (AMF) and cream cheese continue to perform reasonably well on export markets, and even better in the domestic markets of many major exporters (Australia included).

The total returns from channelling milk to SMP/milk fat production streams are at present greater than those from producing WMP. Speculation that SMP pricing may reach public intervention levels increases its attractiveness to manufacturers, because of the effective price floor that intervention buying by the

European Commission provides.

With little change to the fundamentals, it looks likely that prices will finish 2014 around current levels. The good news is that inevitably, the cycle will turn.

Though a substantial degree of downside risk remains (particularly for SMP), many products are likely to find increasing levels of support into 2015.

By then, pricing signals will likely be reaching the farmgate (and consumers) worldwide, and supply may become further restricted as southern hemisphere farmers contend with a potentially difficult summer.

• John Droppert is industry analyst with Dairy Australia.

®

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DAIRY NEWS DECEMBER 9, 2014

AGRIBUSINESS // 27

Nothing beats homegrown pasture WITH CASHFLOWS tight on dairy

farms, pasture comes out on top as the cheapest feed source, says fertiliser co-op Ballance Agri-Nutrients.

Ballance science manager, Aaron Stafford, says getting the best grass for the least cost can be achieved with a hand from science.

The “grow your own” approach of using nitrogen fertiliser to boost pasture growth provides the most cost-effective supplementary feed, but with cashstrapped farmers working within very tight budgets, they want to be confident of a good pasture response to money spent on nitrogen.

“There is nothing more frustrating than seeing a poor or variable pasture response nitrogen fertiliser to boost feed availability, says Stafford.

“We can help farmers get the best results by enabling them to tailor application rates to areas which are likely to produce the highest pasture response.”

Application rates can be tailored using Ballance’s N-Guru, a software tool developed with AgResearch through Ballance

Agri-Nutrients Clearview Innovations “With that amount of nitrogen Primary Growth Partnership pro- applied across a season, you might expect gramme. Based on a soil ‘total N’ test to achieve an average 10:1 response and that has been calibrated with pasture an extra 1000 kg of dry matter per hectnitrogen response, N-Guru are. Depending on the soil can help to improve effitest variability, N-Guru ciency of nitrogen fertilcould tell us that in low soil iser use, by linking data nitrogen areas, the typical from the farm with a nitronitrogen response will be higher (e.g. 13 kg of DM per gen response database. This kg of N applied), whereas in allows N-Guru to forecast high soil nitrogen areas the which parts of the farm are nitrogen response could be likely to be more respondown to 7 kg of DM per kg sive to nitrogen fertiliser. It is most valuable when soil Aaron Stafford of N applied. Where we can testing shows variation in total nitrogen help is to ensure the investment in ferlevels across a property, although it can tiliser delivers the best response rate by also be useful to look at the seasonality putting the nitrogen where it will make of nitrogen responses. Five years’ worth the most difference.”

Allocating more of the season’s nitroof research across sites throughout New gen to the low testing areas and less to Zealand has shown good results.

Stafford says the tool is best used the high testing areas would make sense strategically to guide how to allocate the to improve nitrogen response efficiency nitrogen budget for a season. For exam- and return on your fertiliser investment. ple, across a year a dairy farm could apply N-Guru can assist with determining what 100 kg N/ha uniformly across the entire the likely benefit would be from varying nitrogen inputs. farm.

Organisers happy with 539 entries ORGANISERS OF the 2015 New

Zealand Dairy Industry Awards have received 539 entries.

Entries closed last week; 117 entries were received in the Sharemilker/Equity Farmer contest, 163 entered the Farm Manager competition and 259 entered the Dairy Trainee of the Year contest.

National convenor Chris Keeping is thrilled.

“It’s a great result and we are really thrilled with the response,” she says.

“Given the circumstances with a lower forecast milk payout, a challenging spring in some parts of the country and a change to the timing of entries being accepted we are really pleased.

“The numbers ensure strong competitions will run in each of our 11 regions and that is great for the entrants, for the competitions and for us as organisers of the awards.”

The Canterbury/North Otago region recorded the most entries with 75 in all, with the Waikato

region second with 64 total entries. The Southland/Otago and Manawatu regions received 59 and 54 entries respectively.

The awards are supported by national sponsors Westpac, DairyNZ, Ecolab, Federated Farmers, Fonterra, Honda Motorcycles NZ, LIC, Meridian Energy, New Zealand Farm Source, Ravensdown, and Triplejump, along with industry partner Primary ITO. Keeping says preparations are now underway for regional judging that will begin in the New Year. All entrants will be invited to attend events to meet each other and learn about what to expect in the judging process.

“All entrants can give themselves a huge pat on the back as they’ve taken an important step in enhancing their career and farm business just by entering the awards.”

Visit www.dairyindustryawards. co.nz for more information and to view an events calendar of the regional competitions.

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DAIRY NEWS DECEMBER 9, 2014

28 // MANAGEMENT Coll Bell with his dairy washdown recycling system which includes decanting tanks, solid waste digesters and filter tunnels.

Worms, plants f PAM TIPA pamelat@ruralnews.co.nz

A NORTHLAND businessman is developing an environmentally friendly system of cleaning and reusing dairy shed washdown water; he says it will reduce costs and control

nitrogen runoff.

Coll Bell says his company, Simple Waste Water Solutions, has for 10 years been installing domestic wastewater solutions using worms and plants.

He is confident the system will easily convert to dairy sheds and he is installing a trial system on a nearby

farm to prove it.

The new dairy shed system uses worms, plants and also a decanting system to filter the water. It will handle two dairy shed washdowns, so the water will be pumped back to the shed for reuse within 24 hours.

Bell says it will save dairy farmers on water rights, resource consents and future-proof them against councils imposing charges for water. That’s in addition to the environmental benefits.

Bell is looking for an investor or an investment partner to help in the development phase and he aims to start commercial installation by next dairy season. He is currently financing development work himself with a small Callaghan Innovation grant which covers some wage costs, including a scientist.

He is installing the trial system on a nearly Whangaripo Valley farm near Matakana owned by Richard and Debbie Came who run a 230-cow operation.

Tanks and tunnels are in and the installation will be completed this month ready for testing and then dairy shed operation.

Testing will include the quantity of washdown water used and recycled,

the efficiency of decanting tanks in separating the solids and the liquids, the efficiency of the worm tanks in dealing with the solids and slurry and the efficiency of plants in filtering water.

A water blaster under development for cowshed washdown in Europe will be brought in and tested in Bell’s system, with water use measured against a conventional hose. Other factors such as rainfall, temperature and supplementary food intake will also be monitored.

The trial system includes four tanks for decanting or separating the solids from the liquids, four separate solid waste digester tanks in which worms break down the solids, and a tunnel house where water will be filtered through plants to remove contaminants.

Washdown water will go into the first decanter tank, then the second, third and fourth. All the solids will settle on the bottom. “Tests so far show the cleanest water is right at the top – there are few floaters, mainly sinkers. I am going to make up a glass cube with a video camera so it can go down inside the tank to show the separation.”

He says it will be interWashdown water measurement.

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7/11/14 2:41 PM

DAIRY NEWS DECEMBER 9, 2014

MANAGEMENT // 29

s filter shed water for reuse KEEN TO PROVE SCEPTICS WRONG COLL BELL says a dairy shed water solution of a similar size to the trial module it will cost a dairy farmer about $45-50,000 when it becomes available commercially.

He says that is about the same as resource consent and under the RMA if you are nil discharge you do not need resource consent.

“After 10 years of developing household water systems I am positive it will work,” he says.

Worms working on household waste in another of Coll Bell’s systems.

esting to see how clean the water is that comes out of the decanting system, but only the top water is being drawn off as the whole system runs on displacement. As water enters the system it displaces water right through into the tunnel houses, which come after decanting, and

WMS_3DealsSetOfAdsDNp.indd 1

out the other end. The system will take two washdowns. “We will take all the washdown water. The plant washdown will be separated. The plant washdown will not be that dirty, it will have a little milk in it, but it has a lot of chemicals in it. So that will be mixed with the dairy wash-

down water once it has been through the filtration system and the chemicals will help sterilise it.”

The system will separate the solid from the liquid. The first decanting tanks will always be full so water pressure will force solid material to the solid digester tank (worm

bin), which has bark and a drainage system. The solid material gathers on the bark, the liquid will be pumped straight back into the decanting tank. “We’ve got four worm bins – so once we’ve got enough in one, we leave it to dry out and the worms will take care of it – we rotate the solid waste digesters and the worms can cope with the volumes coming in.”

Bell says at the end of

He has come across scepticism but with all his experience of the household systems he knows it can be done.

As a modular system it can be designed for large or small farms.

“Everything is modular so for argument’s sake if we find we are not getting the water clean enough in our trial, I can put in another four decanting tanks. We could increase the worm system also.”

the season the wormcasts byproduct can be used for fertiliser. “The sawdust and bark used for filtration will suck out the nitrogen – I have got tests to show that. That will be emptied out at the end of the season and can be used as fertiliser because it is extremely high in nitrogen.”

After the decanting tanks the water goes into the tunnels house with

A household uses about 1-2000 litres a day.

“If we can get a cowshed down to 5000 litres a day for the washdown then the trial module size should cope well and end up with a good product that can be used for washdown again.”

He designed and owns the mould which is used in different ways for the decanting tanks, solid waste digesters and the tunnels.

stepped troughs filled with sawdust. Tomatoes will be grown in the trough as their extensive root systems are great filterers.

The water is then mixed with the plant washdown and pumped back to the dairy shed.

Bell says there is no standard as to how clean dairy shed washdown water should be. He has a scientist friend working on the same thing in

England and environmental engineer has been contracted to determine the standard. They will mainly test for Total Suspended Solids and he will aim for a reading just one third of the maximum allowable for household secondary wastewater. He says his company always achieves that for household systems and believes it realistic for the dairy water also.

25/11/14 2:33 pm

DAIRY NEWS DECEMBER 9, 2014

30 // MANAGEMENT

Swiss precision s Longland Dairies, near Hinds, Mid Canterbury, was the supreme winner of the 2014 Dairy Business of the Year competition. Andrew Swallow reports from a field day on the farm last week.

THE SWISS are known

for their precision and it seems Martin Furrer is no exception to that rule. He and wife Linsey run Longland Dairies, a 1250-cow, 312ha equity partnership

Supreme winners: Martin and Linsey Furrer.

at Hinds, Mid Canterbury.

As a field day on the property last week unfolded, their meticulous management became clear, not that Furrer was giving too many secrets away.

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“I’m not quite a Kiwi yet but I’m getting there slowly,” he quipped as he outlined his Swiss upbringing and how a one year farming exchange to New Zealand as a student prompted a return six years later to go dairying fulltime.

“In Switzerland if you’re not from a farm background there’s not much hope of becoming a farmer.”

Their return to NZ was in 2003. After three years sharemilking in Bay of Plenty they moved to North Canterbury for a season, then Longland Dairies, in due course becoming equity partners with two other investors.

“They are top of the line in farm performance and profitability,” Interlact executive director Helwi Tacoma told the field day crowd. “This is not just a one year wonder. They’ve done this for a number of years,” he added, presenting the headline figures from account benchmarking package, RedSky (see table).

Tacoma picked three main drivers for the farm’s stellar performance, comparing them to a person’s heart, lungs and brain, though he stressed a body needs many other parts to function properly, and so it is with a farm.

“Number one has to be production,” he said, pointing out 501kgMS/cow and 2124kgMS/ha is “quite a margin” above even the top 10% in RedSky (450kgMS/cow and 1900kgMS/ha) and leaves the average (410kgMS/cow & 1730kgMS/ha) across the database “in the dust”.

Second on Tacoma’s list was cost of production. At $3.86/kgMS it was higher than RedSky’s top 10% average of $3.63/ kgMS in 2012-13 but was still comfortably above the database average of $4.33/ kgMS. What really matters is the gap between cost of production, and production itself, he added.

“What Martin and Linsey are very good at is farming the gap…. Focussing on one, or the other alone is not going to get you there.”

Comparing that gap to the lungs, Tacoma labelled core costs as the brain of the business. “They’re really tight on their per cow costs and per hectare costs. They don’t spend where they don’t have to,” he said, joking that it was hardly surprising given Furrer’s Swiss and Linsey’s Dutch ancestry.

Furrer said Longland’s operating costs are “always below $4/kgMS and some years quite a bit less.” “We don’t have luxury items in the system, just the basic stuff. We definitely look at every cost and just keep a handle on it. It’s common sense.”

A back calculation from milk production, less the 1.1t/cow of supplement used – palm kernel, barley, and silage – put pasture harvested by the cows in 2012-13 at 18.6tDM/ha, the highest of the finalists by 2t/ha. “He gets his cows to eat a hell of a lot more feed and most of that feed is actually pasture,” noted Tacoma. “How?” Furrer said they simply “do everything possible to get as much grass in them as we can.” “In general they’re on 12-hour breaks but sometimes we’ll feed them two, even three breaks in 12 hours. Before lunch we always go to look at the cows and if they need moving, they need moving.”

Target pre-graze cover is 3000-3100kgDM/ha, “slightly higher than the DairyNZ standard” but residuals are still taken down to 1500-1550kgDM/ ha. Mowing pre-grazing is occasionally used to ensure residuals are achieved, but the mower’s never used behind the cows.

Pastures are a threequarter tetraploid, one quarter diploid ryegrass mix with 4kg/ha of clover.

About 15% is renewed most years, though this year that’s dropped to 3% in light of the low payout forecast. Any surplus grass is being taken as silage rather than taking paddocks out for renewal.

“We’ll probably take two paddocks for silage every ten days this year.”

Cows are run in three

DAIRY NEWS DECEMBER 9, 2014

MANAGEMENT // 31

scores supreme title

Cool crowd: chilly southwesterlies left some shivering.

mobs: heifers; big cows; smaller crossbreds. The latter mob graze distant paddocks as they handle walks of up to 1.7km to the shed better.

Breeding worth (BW) of the herd at 91 is “nothing outstanding” Furrer said, but they had spent quite a few years sourcing genetics from several different companies, domestic and overseas, to get the

WMS_3DealsSetOfAdsDNp.indd 2

“model cow” they wanted.

“But this year we’re keeping it simple with bull of the day.”

Jersey bulls, plenty of them, had just gone in with the herd last week after two cycles of AI. With no induction option come calving, bulls will be withdrawn “probably in mid January.”

While some at the field day suggested that was

still late, given it would mean some late October calves, Furrer argued a cow in-calf gave him options whereas an empty didn’t.

The whole herd is metrichecked and three week submission rate this year was 96%. In the competition season (2012-13) six week in calf was 72% and empties 4.7%. “But we left the bull out until about

February 18.”

The farm converted to dairy 17 years ago and is two-thirds irrigated by pivot, one-third RotoRainer. When he and wife Linsey arrived effluent was applied with a travelling irrigator and there was no storage, which caused “a lot of headaches.”

Their first step was to put effluent down a separate line slung under one of the pivots. Sounds simple enough but all stock water races had to be re-routed to avoid contamination. Now effluent goes through a two pond system before fluid is injected into the irrigation mainline. Outside of the irrigation season it’s diluted but when there’s water going on there’s no need.

“It cost a few bob to do but it’s been an absolute blessing. Effluent has become a real fertiliser whereas before it was a headache.”

Besides nutrients in effluent, applied fertiliser supplies about 200kgN/ ha/year, 40kgP/ha/year, 50kgK/ha/year and 70kgS/ ha/year.

The latest Overseer estimate for the farm is 69kgN/ha/year leached.

“That’s probably fairly standard for irrigated dairy farms across Canterbury,” noted Joe Edlin of Headlands, presenting a session on the 15% of competition points allocated to environmental management.

Irrigation tends to inflate loss figures in Overseer, particularly if it is not managed to soil moisture deficit [SMD] readings from meters such as Aquaflex, he added.

“I’ve seen that [irrigation managed to SMD] drop losses by 50% which is huge.”

Longland doesn’t manage irrigation to meter-readings and Edlin said it would be cheaper to look at SMD management

LONGLAND DAIRIES ❱❱ 1250 cows at peak, three herds, through 50 bail rotary. ❱❱ Irrigated 295ha effective plus barley, PKE + silage. ❱❱ 4.2 cows, 2124kgLwt/ha producing 2124kgMS/ha at $3.86/kgMS. ❱❱ Operating profit $5,025/ha with core costs of $634/cow, or $76/t pasture harvested. ❱❱ Best by far on HR; 69kgN/ha loss caused ordinary enviro score. * All figures for 2012/13 season, as supplied in DBoY field day handout.

options, which could be $10,000-20,000 to install and manage yourself or up to $7000/year for a fully managed contract service, than stand-off pads or other off-pasture facilities aimed at reducing urine patches and consequent leaching.

“But SMD alone may not be enough.”

Furrer acknowledged that Longland’s “high” stocking rate of 4.2 cows/ ha and medium supplement input put it “in the spotlight” environmentally.

However, a field day he’d attended recently on a well managed pastureonly farm which wasn’t

extending its lactation like Longland revealed losses there were “not much lower,” he pointed out.

“Overseer reports have no consistency… it just goes up and down like a yo-yo. I don’t think the science is there yet. We’re going to need proper facts, then we’ll adopt the best management practice, but we’ve got to get it right first.”

He admitted Longlands is “probably not at the forefront” on mitigating its nutrient losses but argued it’s sometimes better to be an early follower than to pioneer solutions that may subsequently prove not the best.

25/11/14 2:33 pm

DAIRY NEWS DECEMBER 9, 2014

32 // ANIMAL HEALTH

Prepare for the FE season Veterinarian William Cuttance spore counting for a client.

IT’S TIME to start doing

things better to reduce the number of animals affected by facial eczema, says veterinarian Emma Cuttance.

A survey and sampling conducted during the 2014 facial eczema season on 106 farms throughout the North Island showed that one-third of farms had cows affected by sub-clinical facial eczema damage.

The vast majority of these farms had not seen any clinical cases of facial eczema.

The DairyNZ and Sustainable Farming Fund research showed a number of things farmers can do to start preparing for the facial eczema season. The facial eczema ‘season’ will vary depending on farm location and climate, so it’s important to base actions on spore counts rather than certain months.

The key is to put a plan in place and start control early. Every management system for facial eczema has gaps or weaknesses, whether it is zinc sulphate water treatment or fungicide spraying. If those gaps are not identified and addressed, cows will not be fully protected.

It is important to review the situation regularly to check your control method is working.

Visitdairynz.co.nz/facialeczema to work through the recommended management system and to read the facial eczema Farmfact on treatment and prevention.

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Pasture spore counting to reach 20,000 spores/g to spore counting a few is an excellent tool to iden- of pasture, it is important of the paddocks the cows tify pasture spore count to gather a more accurate might graze in the next trends. Howpicture of your 24-48 hours.

The key ever, research farm.

It is not uncommon for from 2012 to Identify spore counts to decrease is to put four paddocks 2014 found the unusually early or unusua plan representative ally late. Therefore do not variability of the farm and stop the management probetween farms in place and start is very large. gramme until the spore monitor these This is because control counts are trending down paddocks regularly for every farm, and are consistently below early. trends in rising 10,000 spores/g of pasture paddock and spore counts. even sections for three weeks. of paddocks, contain a • This article was originally Use this trend to base slightly different micromanagement decisions on published in Inside Dairy climate for the spore-pro- – it is a preferable method December 2014. ducing fungus.

It is possible to have spore counts varying by WHAT IS FE? as much as a 500,000 spores/g pasture or more between farms and Facial eczema is a disease affecting the liver of even paddocks. cows. While many associate facial eczema with While rainfall, minskin peeling and red, sensitive teats, the real imum temperatures, damage comes from the 95% of cows that will humidity, topography and not show any clinical signs of the liver damage regional spore counts facial eczema causes. give some indication of This unseen damage affects milk production spore count trends, when and survival in the herd. regional spore counts www.dairynz.co.nz/facial-eczema start trending upwards

3/12/13 2:13 PM

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DAIRY NEWS DECEMBER 9, 2014

ANIMAL HEALTH // 33

Keep cows cool this summer HEAT STRESS is a big issue dairies must address during the hot weather.

When cows are exposed to hot weather, they have a limited ability to store up heat in their body and then allow it to dissipate overnight.

In times of extreme temperature, or high humidity, the ability of a cow to regulate her body temperature can be overwhelmed. An even bigger problem is during a run of days and nights of high temperature and humidity causing the heat load of the cow to rise and rise.

The key measure is the temperature and humidity index (THI). There are good tools that use tables of THI and weather forecasts to identify days or weeks of high risk of heat stress.

Dairy Australia has resources for predicting and managing heat stress, and I encourage all dairy farmers to access these resources, to set up the alerts that warn in advance of times of high risk. The cool cows website is a must for favourites at this time of year.

During times of heat stress there are various strategies that can be employed.

Some are simple management decisions like changing the time of milking to avoid the heat of the day, thoroughly

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wetting the yards prior to bringing the cows in for milking or selecting paddocks close to the dairy with good shade.

Active cooling can include using sprinklers during milking to cool the cows. Research suggests that getting the correct droplet size can make a big difference to the effectiveness of sprinkler systems, and in addition to sprinklers, using fans to enhance the effectiveness of evaporation can also improve cooling efficiency. As the air blows over the wet skin it increases the rate of evaporation. As the water evaporates it literally sucks heat out of the cow. This is known as the latent heat of vapourisation and is a useful ally in the fight against heat stress.

Passive cooling under shade structures or trees are also great methods of mitigating heat load. A nurseryman once told me that the best time to plant a tree is 20 years ago and the next best time is today. A well-designed and maintained tree line is an asset to any farm. Ensure the correct orientation for your tree line so that you don’t shade your laneways during the winter which can result in wet slippery surfaces.

Cows cool under trees to mitigate heat load.

Shade structures can range from shadecloth to freestall barns. Every farmer setting out to build a shade structure will need to do a feasibility study. Orientation is important to maximise the effectiveness of the shade pattern and minimise the shading of areas of high traffic. Dairy Australia has great publications on this topic.

If your prevention strategies fail and you are faced with a cow (or cows) collapsed with heat stress/heat stroke, it is a serious emergency.

Often the cow will go down with milk fever like symptoms, their respiration will become fast and they will be open-mouth panting and often will

froth at the mouth. Actively cooling these cows before any other treatment is important; lots of cool water poured over the cow to soak her to the skin and then encouraging the water to evaporate by fanning is useful.

The aim is to get their body temperature below 39.2oC. I have seen cows with temperatures over 42oC survive once cooled and treated. Some cows will need calcium, anti-inflammatories and oral or IV fluids depending on their symptoms. Take care when treating cows with heat stroke. I have had them literally drop dead off the needle while being treated when I hadn’t ensured that they were adequately cooled prior

to treating.

Far more common than seeing clinically affected cows is to see evidence of sub-clinical heat stress. Milk drop, reproductive failure and other production losses are the most common and most costly part of heat stress but are often largely invisible. This is why every dairy farmer should plan to ameliorate the risk of heat related losses; heat stress will be costing you a small fortune long before you see clinically affected animals.

• Rob Bonanno is a former president of the Australian Cattle Veterinarians Association and a director of the Shepparton Vet Clinic, Victoria, Australia.

25/11/14 2:33 pm

DAIRY NEWS DECEMBER 9, 2014

34 // ANIMAL HEALTH/FEED

Making sense of in-shed feeding A DAIRYNZ project is

Individual cow feeding is increasing as more New Zealand farmers invest in in-shed feeding systems.

looking at the value in individual cow feeding.

The project aims to provide robust information to farmers who are considering investing in computerised in-shed feeding technologies and those

already using these systems. Results and information from the project will be available to farmers mid2015.

According to DairyNZ, individual cow feeding in New Zealand is based on the idea that some

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cows can eat more supplement with less effect on the amount of pasture they consume. These cows will therefore have a greater response to the supplements fed - either through increased production or body condition score (BCS).

While individual cow feeding is often used overseas, little is known of its value in pasture-based systems such as in New Zealand where high pasture use is a key driver of profitability.

Individual cow feeding is increasing as more New Zealand farmers invest in in-shed feeding systems.

A DairyNZ technologyuse survey in 2013 found a third of all farm dairies have in-shed feeding systems installed, with 62% of these rotary and 22% herringbone.

Most of these systems feed all cows the same amount (flat-rate feeding), whereas nearly a quarter can feed individual amounts (individual or differential feeding) according to rules set by the farmer.

The project initially surveyed New Zealand farmers and farm advisors to gain insight into current onfarm practices. The individual cow (or group) feeding strategies most commonly used by New Zealand farmers were: feeding to milk production (58%), breed

or age (50%), liveweight (42%), stage of pregnancy (40%) and BCS (37%).

Farmers reported there were benefits in individual cow feeding but there was a lack of clarity around the most profitable feeding strategies.

Simulation modelling was also used to explore common criteria for individually feeding cows (milk production, age, genetic merit, liveweight and BCS) and determine any difference in the milksolids response compared with flat-rate feeding.

The same total amount of supplement was fed in each scenario and results from this modelling indicated there was no benefit to individual feeding.

The final stage of the project was a field study carried out this spring to compare flat-rate feeding with individual cow feeding.

Four herds of 18 cows were flat-rate fed 4kg DM of supplement/cow/day.

Another four herds were individually fed according to their milk production ranking. The highest producing cows received 6kg DM supplement/day, the middle cows received 4kg DM/day and the lowest producers received 2kg DM/day. All herds were offered the same total amount of supplement and were managed identically on pasture.

for use in your herd.

• Nil milk withholding period • 2 day meat withholding period • Excellent suspension A DairyNZ technician collects and measures leftover supplement.

• Easy to syringe Use antibiotics responsibly and as directed by your veterinarian

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■■

One-third of New Zealand dairy sheds have in-shed feeding capability.

■■

About a quarter of in-shed systems are computer controlled for individual cow feeding.

■■

There is no robust data to indicate the value of individual cow feeding in New Zealand.

DAIRY NEWS DECEMBER 9, 2014

ANIMAL HEALTH // 35 Balanced trace element formulation

Seaweed concentrate enriched

Group feeding of calves is not ideal, says an Australian vet.

Locked in calf feeders work in Oz – Vet

A technologically superior formulation of trace elements to be added to zinc during the facial eczema season. · Soluble seaweed concentrate – trials have shown powerful toxin binding abilities · Balanced mineral nutrition – maximising zinc utilization · Compatible with eczema zinc formulations · Totally soluble – comprehensive formulation of key elements in amino acid complex form · Easy to use – dose directly into water troughs, dispensers or drenches

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BENEFITS OF LOCKING HEAD BAILS ■■

■■

Each calf receives a known consistent volume of milk.

Slow drinkers, with no underlying disease, can be kept with their age group. This enables a true all-in

■■

all-out system with improved biosecurity.

Early identification of sick calves allows early treatment and increases the likelihood of a favourable outcome.

■■

■■

May help in the prevention of crosssuckling behaviour.

Supports accelerated growth programs where calves need to be fed a known volume of milk.

target summer deficiencies

z

DAIRY CALVES in Australia are predominantly reared in groups from birth until weaning.

This results in the communal feeding of milk which may be once, twice or three times daily in non-automated systems.

Feeding milk to group-reared calves can be stressful and inefficient for both calf and operator because calves drink at differing speeds and can compete with each other for teat space.

As a result, feeding calves may become a time consuming job, requiring multiple staff, to ensure that all calves receive their daily allowance of milk, which still cannot be guaranteed.

In group feeding systems, it is difficult to identify slow or incomplete feeders, which can be an early sign of sickness. Such calves may not be picked up early enough which can increase their risk of morbidity (sickness) and mortality (death).

The concept of locking head bails for the feeding of calves is not new. They were used decades ago with variable success as the designs differed greatly. They became less popular as more convenient methods of group-feeding calves were developed.

However, there are consequences of convenience and now, with research suggesting that our dairy calves are not being fed to reach their full potential, the more recent methods of feeding calves in large groups are no longer suitable.

Locking head bails are available in a range of designs, varying in strength, functionality and cost.

Some models are deemed to be overengineered with many moving parts, which contribute to overall weight and ultimately

expense.

When choosing a model for your calf shed, it is important to consider the number of calves per pen (determined by calving pattern and time period calves spend in the shed) and whether or not there is room for the equivalent number of head bails and an access gate to the pen.

Access gates are essential to prevent injury to calves and staff. Regardless of the model, head bails are not intended to be climbed over.

Other considerations include whether the head bails will be fixed or hinged, how the pens will be cleaned out, what type of feeders will be used and how milk will be delivered to the calf shed.

A common theme is for milk to be transported from the dairy in a milk cart to the calf shed, where it is pumped to the individual feeders via a trigger hose. This has proven very popular due to the ease and speed of milk delivery without the need to lift and carry buckets of milk.

This consistent, stress-free feeding regimen has shown health benefits and increased growth in dairy calves and more efficient use of staff at feeding time.

The locking head bails have also allowed farmers to utilise accelerated growth programs which rely on individual milk feeding systems.

In hot weather, routine feeding of electrolytes has proved beneficial to help reduce heat stress and disease events. The locking head bails allow fast and effective feeding of electrolytes, enabling all calves to receive a known volume.

• Dr Gemma Chuck is a dairy vet working at The Vet Group in south west Victoria. She has a special interest in calf rearing and is currently undertaking her PhD in this area at The University of Melbourne.

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DAIRY NEWS DECEMBER 9, 2014

36 // MACHINERY & PRODUCTS

Redesign gives more grunt NEW HOLLAND has completely redesigned and upgraded the T4 tractor range.

The new version features three higher horsepower premium tractors which will replace the existing T4000 and the entry-level models of the T5000 ranges. This tailored offering produces between 86 - 107 horsepower and benefits from state-of-the-art common rail technology with an efficient cooled exhaust gas recirculation system for Tier 4A compliance.

Advanced features include optional electronic draft control and dual command transmissions, and with the deluxe VisionView cab and distinctive New Holland styling, the appeal of this range is further extended, the maker says.

The four model range, conceived

with loaders in mind, produces 84-114hp and maximum torque of 457Nm. “In the competitive livestock and mixed farming segments, farmers are demanding increased levels of operational flexibility and comfort,” says Kyle Baxter, New Holland New Zealand operations manager for C B Norwood Distributors Ltd. “That is why we introduced the dual command transmission with creeper alongside New Holland’s SuperSteer front axle.”

New Holland says it knows that operator comfort is a prerequisite for optimum productivity, especially during long and demanding days.

The deluxe VisionView cab, also available on the T5 range, was designed using virtual reality techniques to offer “unparalleled” ergonomic excellence, says NH. The interior is 20% larger than

New Holland’s upgraded T4 range has advanced features.

its predecessor.

All controls fall easily to hand. The principal controls, including the electronic draft control (EDC) mouse, and hydraulic remote levers, amongst others, have been placed to the right of the operator in an ergonomic ‘command arc’ to reduce fatigue and increase precision.

A dedicated foot pedal to steplessly adjust the position of the steering column and integrated instrument cluster is located at the base of the column, which enables precision placement while in the actual driving position.

The curved opening rear side glasses offer a clear line of sight for rearmounted off-set mowers; comfortable

visibility is further assisted by the 15° of seat swivel. The repositioned exhaust muffler, now in line with the A-pillar, enhances visibility with a view of the inner tyre wall, ideal when working in narrow row-crop applications.

An all-new dual zone air conditioning system has 10 individually positionable vents, which all deliver even flow thanks to dual-zone technology. The B-pillar mounted controls fall to hand and can be “intuitively” adjusted on the move.

The deluxe VisionView cab has been designed with livestock operations in mind, with an overall height of 2559mm (with 420/85R30), enabling the T4 full access to low sheds.

New Holland’s 24x24 dual command transmission, standard on cab and ROPS models, can also be specified with a creeper option. This transmission is ergonomically engaged via a dedicated lever in the cab; the creeper function gives speeds as low as 130m/h.

This is in addition to the dual command transmission’s standard performance, which enables operators to shift between eight speeds in the three main ranges without the need to use the clutch pedal. And the hi-low splitter full load powershift, which is engaged on the move, reduces forward speed by 15% and increases available torque by 18%.

Tel. 06 356-4920 www.newholland.co.nz

Take control of the seasons ... efficiency  Feed Increases of up to 40% have been gained meaning lower cost wintering, greater weight gain or an increase in production

calving  Improved Calving with shelter means greater survival rate and less stress for staff Flexibility

 Lactation can be extended, giving greater production and profits Simple

 See the new and improved design. More loafing space, increased effluent storage and a stronger roof. Ask the farmer why they picked HerdHomes® shelters and see for yourself how it is working out.

Make your own mind up.

Contact us about an on farm visit in your area

Every farmer agrees that their farm is simpler to manage and run with a HerdHomes® shelter on it

Summer HerdHomes® shelters users throughout the North Island continue to talk to us about the benefits they get throughout the summer. These include increased feed intake, reduced wastage, improved animal health, better cow condition and less stress on both staff and animals all leading to better production through summer. Talk to us and see whether we can also help your business.

0800 HERDHOMES (0800 437 346) NZ Patent Numbers: 521150, 544190, 550635, 545042. Further patents pending. International Patent Numbers: 2003267874, 03748807.9. Further patents pending

DAIRY NEWS DECEMBER 9, 2014

MACHINERY & PRODUCTS // 37

Spreader saves Aussie farmer time, money AUSTRALIAN FARMER Charlie Coote

was impressed when he first saw the Tow and Fert Multi 1000 fertiliser applicator at the National Fieldays in New Zealand some years ago.

“It has always been our goal to find a more environmentally responsible and economic solution to farm fertiliser; liquidising nitrogen has helped us do this,” he says.

The Cootes milk 750 cows at Mooroopna in the Goulburn Valley, on the banks of the Goulburn River opposite Shepparton, with their son, Hayden and his wife Heidi.

They have been on the property (546ha including a run-off block) for seven years and the place needed a lot of refurbishment when they started. “The irrigation, the laneways, the fencing, it’s been massive and it’s not yet finished by any means.”

The machine is manufactured and marketed

by New Zealand company Metalform Tow and Farm and about the time Tow and Farm were expanding into Australia they ran a demonstration at the farm next door to the Cootes.

Both neighbours each bought a unit in August last year.

The Multi 1000 has a 1000L tank and a 20m boom, using a patented recirculation system and vigorous agitation to dissolve granular urea into a solution to use less nitrogen per hectare and get the same response.

Tow and Farm designed and built its own 3inch stainless steel trash pump and the unit is powered by a Kohler 7hp 4-stroke 208cc engine. Because it does not require a PTO it can be easily towed by a small tractor or a ute.

The application nozzles are located at each end of the boom and the direction of the spray can be adjusted to suit the wind conditions. The published application rate varies from 50L/ha at 25km/h with TF15 nozzles to 650L/ ha at 5km/h with TF50 nozzles.

Coote says they are spraying mainly urea and a carbon source, usually lime flour.

“What attracted us was that we could liquidise the urea, use half the normal rate and get ‘bang for our buck’. And that has proved correct,” he explained when we visited in mid-November. “We couldn’t find anything on the market that was specifically designed to turn urea into liquid and then spray it out.”

They liquidise 350kg of urea with 750L of water. The time taken for the mixture to dissolve depends on the ambient temperature, usually 10-20 minutes, and they add additives to it as needed.

The 1000L tank covers 8ha per application.

“It is a relatively expensive machine, so you have to know that it’s going to do what you want. It’s well made and has good backup service. We haven’t had much call for that. We’re very pleased with the results.”

Hayden is the main operator of the machine and says it is simple and easy to use. “It does more than one job; we incorporate it in our farm fire plan in summer by keeping it on standby full of water as it is well equipped for firefighting.

“We can suck from the dam and it pumps out the water like a wash-down yard hose. It has already been used twice with good results.”

They spray the paddocks “following the herd”. It works out as a rotation of 35-40 days in winter and 18 days in the spring. “It’s a job for every second day.”

During our visit in midNovember the machine was hooked up behind their Massey Ferguson 7614, but they also use the ute and a smaller tractor to tow it. The Cootes also have a 90hp Valtra, a 60hp Case IH tractor tractor and a 130hp telehandler.

Coote says they are using water from the adjoining sewerage treatment facility. “We have a pipe and riser system covering 210ha fed from the effluent and the channel in a closed farm system. The primary pump runs virtually 24/7.

“We have just planted 50ha of fescue watered

by a pivot irrigator with a 989m radius, which we are told is the largest in Australia. It can cover 120ha and is powered by two 55kW units. By growing more grass and fodder the Tow and Fert helps maximise effectiveness of these

huge irrigation upgrades.”

The Cootes employ three full-time workers and Coote says it’s a good team and they all work hard. “The Tow and Fert helps us all by saving the most precious commodity – time.”

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DAIRY NEWS DECEMBER 9, 2014

38 // MACHINERY & PRODUCTS

Emotional winner CHRISTMAS ARRIVED early for

Tokoroa dairy farmer Allan McDonald, winner of the SourceNZ ‘Win a Tractor’ competition.

SourceNZ is a custom feed blend company in Te Awamutu.

McDonald’s name was drawn from 35,000 entries and he took home a Case Farmall JX90 tractor. The competition, at National Fieldays, awarded to Sour-

Allan McDonald with his prize.

ceNZ clients one drawprize entry for every $1000 order of the company’s feed during the ensuing four months.

Theo Swart, business manager of SourceNZ, phoned McDonald, who was making wedding arrangements.

“It was really emotional,” says McDonald.

“I had to compose myself and it took a few days for it to sink in”.

McDonald bought 39ha in 1983 and with his late wife Marg built the farm to 224ha during their 33 years together. 80ha was converted from forestry.

Marg died two years ago. Their two daughters work on the farm and McDonald now has seven grandchildren. He recently remarried.

FOR MORE GROUND-BREAKING FARM MACHINERY STORIES...

The Case tractor will be used for fencing and other work. McDonald is busy converting a 50ha bush block.

The SourceNZ competition was supported by Giltrap AgriZone, Mineral Boost, Intergrain NZ Ltd, Cargill MidPro Meals and Volac. www.sourcenz.com

Fuel funnel filter keeps dirt out A NEW fuel filter funnel from Griffiths Equipment

prevents contaminants from entering vehicle fuel systems.

“The biggest source of contamination is from storing fuel in cans in garage or workshop,” says Tim Paterson, national sales manager, Griffiths Equipment.

“Temperature changes cause condensation inside the container, regardless of what it’s made of, which mixes with the fuel. And with modern engines, it doesn’t take much water to prevent an engine from starting or causing damage to the fuel system.”

Modern engines are susceptible to even small particles or water contamination, making them hard to start, and may also lead to internal damage. Fuel left in containers is especially prone to condensation.

The funnel does not greatly hinder the flow. www.griffiths.co.nz

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Owning a Tow and Fert can reduce your application costs AND your largest expenditure bill – fertiliser! If you are applying nitrogen, then putting normal granular urea into the Tow and Fert and dissolving it into a solution means you can use less nitrogen per hectare and get the same dray matter response.

The Tow and Fert is a multi-role machine, meaning it can be used to apply a mixture of products, all in one pass. Using its patented recirculation system, vicious in-tank handle many types of fertilisers and products, including; RPR, Lime, DAP, Urea, the Tow and Fert is NOT like any other sprayer.

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DAIRY NEWS DECEMBER 9, 2014

40 // TRACTORS & MACHINERY

Back to the future for timehonoured tractor brand FARMALL TRACTOR

maker Case IH will soon launch a new range – the Farmall C, Farmall U and Farmall U Pro series of utility models.

All will be powered by the same, new 3.4L electronically controlled common rail engine made by sister firm FPT (Fiat Powertrain Technologies).

This has a wastegate turbocharger and intercooler, and cooled exhaust gas recirculation (CEGR) which lowers the temperature of the exhaust gases then blends them with fresh air and returns the mixture to the cylinder for best combustion efficiency.

It also has new diesel oxidation catalyst (DOC) and maintenance-free particulate matter catalyst (PMC) technology which automatically burns off

particulates in the exhaust gases, keeping the system clean and running at peak efficiency.

Improved fuel economy, less noise and vibration, greater lugging ability and a more constant power curve are characteristics of this development, says Case IH. The Farmall C (four models 85-115hp, ROPS or cab) replaces the JXU series as a medium-duty workhorse, good for livestock and all-round farm work. It is manoeuvrable, has “outstanding” powerto-weight ratio, strong hydraulic performance and superb all-round vision, the maker says.

Its 24x24 gear synchro-

Farmall tractors are being relaunched.

mesh transmission with two speed powershift, power clutch and electro-hydraulic powershuttle (wet clutch), makes it capable of 40km/h.

Optional creeper transmission allows speeds down to 123m/hr.

The Farmall U series

(105-115hp, cab only), completely new, suits slightly heavier work such as ground cultivation.

The transmission is a 16x16 semi powershift familiar to operators of the larger Case IH Maxxum XL tractors, the maker says.

This transmission is re-designed in the Farmall U. It enables the driver to select up to eight gears via up or downshift buttons on the transmission lever without moving it. It will do 40km/h at 1870rpm, suiting transport work.

Cab suspension is standard, so are a passenger seat and Bluetooth stereo.

Maximum lift capacity of the electronically controlled linkage is up to 5400kg, with finger-

tip operation of all key functions, including float, transport lock and maximum hitch height.

Case IH is imported in

New Zealand by C B Norwood Distributors Ltd. Tel. 0800 CASE IH www.caseih.co.nz

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DEALERSNATIONWIDE

UNLIKE THE Farmall C and Farmall U, both made in Jesi, Italy, the Farmall U Pro is designed and made at Case IH’s European headquarters in St Valentin, Austria.

The Farmall U Pro (105-115hp) has many features normally found only on much larger machines, such as a programmable automatic gear shift, electronic remote valves with an integrated joystick for front end loader work and a four speed PTO. Running economy stems from numerous ‘big tractor’ features like the 100L/min closed-centre load-sensing hydraulic system – it pumps oil only on demand. It has eco PTO speeds and reaches 40km/h at only 1750rpm.

Mechanical cab suspension, heated air-suspended seat, low noise levels and light and easy controls ease the working day, says Case IH. The new Multicontroller provides the operator with the most commonly used functions at their fingertips, including power shuttle, gear shifts, rear hitch, remote valves, two constant engine speeds and a power clutch. The new 32x32 gearbox was developed in partnership with ZF and is also built in Austria. It has a four step powershift with four shift modes; the dual throttle, the shift point can be programmed according to engine load and speed – lower for loader work and higher for heavy draft work.

There are options of factory loader ready, integrated front hitch and PTO and “municipal” hitches available to fit various needs.

DAIRY NEWS DECEMBER 9, 2014

TRACTORS & MACHINERY // 41

Jacuzzi style mixer for ponds, tanks WELLINGTON COMPANY Spitfire-Revo-

lution has unveiled new effluent pond and tank mixing and spreading technology.

Spitfire managing director Stuart Reid says an effluent pond, pump and irrigator must work together to spread effluent uniformly.

“If the pond is poorly mixed or the pump delivers variable flows or the irrigator application is uneven, the system fails.

You’d fire your fertiliser spreader if he did an uneven spreading job, so why be tolerant of substandard effluent spreading systems?”

Radial arm jet mixing involves one big submersible pump in the middle of the pond, with ten big nozzles blasting the solids. It’s always rotating just above the bottom to mix completely.

Because there are no propellers, there is no risk of liner damage.

“And there are no sludge islands, no residual solids and no loss of operating volume,” Reid says.

A low speed cutter slices solids to size; there is no need to move tractors or direct agitators.

The jet mixer is automatic, drawing power of 8-11kW. The operator has access to all nozzles and the pump even when the pond is full.

“Every drop of the pond goes out through the irrigator mixed uniformly.

The pond, the pump and the irrigator work together to apply a uniformly consistent brew.”

Effluent is pumped from the pond with the help of a progressive cavity pump with programmable logic control.

It’s mounted onshore and there’s no need for a pontoon in the effluent pond.

The pump shuts down after detecting open hydrants, sudden hose disconnections, overpressure and under-pressure operation. It handles lumps up to 8mm.

A visual displays keep farmers and workers up to date during operation. “Alarms tell you what happened and what to look for, in plain English, making fault finding easier. Equipment monitoring shuts down the pump and irrigator when things aren’t right.”

The third component in such a system is the new Spitfire irrigator – “intelligent” and simple to operate, Reid says. “You choose how much liquid you want to apply and it uses the on-board electronics to deliver liquid uniformly to the pasture. It’s like having an extra person on the farm devoted to effluent irrigation.”

Reid says the new FDE standard puts pressure on the irrigator manufacturer to ensure even spreading. “But it says nothing about the thoroughness

of mixing and not much about the need for consistent pump flows. Integrated designs are really necessary.

“Jet mixers are here— just like a powerful Jacuzzi. No propellers, but

always a homogeneous mixture at the irrigator.

Cheaper than separator systems and all the solids and liquids leave the pond together. No solids spreading tasks remain.” www.spitfire.net.nz

Spitfire irrigator in action.

A N E W A P P R OAC H T O T R AC T O R S

Sometimes a new approach meets with resistance. Not the new 7 series from Deutz-Fahr. Instantly hailed as a game changer, the Deutz-Fahr 7250 TTV redefines what you can expect from a tractor.

That’s probably why it was judged Tractor of the Year 2013. The great news is that the thinking and philosophy that created the 7250 TTV lives in every one of our models. Experience our industry leading performance, low fuel consumption and reliability at a Deutz-Fahr dealer today.

Radial arm mixer.

POW0451A

0800 801 888 | deutzfahr.co.nz

DAIRY NEWS DECEMBER 9, 2014

42 // TRACTORS & MACHINERY Sabaru’s latest offering – WRX.

Sports sedan comes of age THE ALL-NEW Subaru

WRX, launched in New Zealand early 2014, has been named Performance Car of the Year in the NZ Autocar awards.

The four door sedan, available with a 6-speed manual or 8-speed Lineartronic transmission, bested a fleet of new gofast models from Ger-

many, England, France and Australia to win.

Autocar liked the overall package of the WRX. “The new and improved model proves even greater value, being cheaper and yet offering extras previously unavailable on the WRX, making it more of an all-rounder.

from its turbocharged ‘boxer’, direct injection 4-cylinder motor. The Lineartronic transmission has three modes, with the option of eightstep paddle shifters on the steering column.

Other features include torque vectoring to limit understeer and electronic

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“It extracts more go from a smaller engine, and travels further on each litre of gas. And it has enhanced dynamics and, as always, feels custom tuned to our roads. It’s family friendly, safe, ultimately affordable and… has truly come of age.”

In its road test, Autocar praised the suspension’s suitability to our undulating coarse-chipped sealed roads, combined with the sharper steering and flatter cornering.

The WRX produces 197kW and 350Nm torque

driving aids. There are seven airbags and a high five-star crash test rating.

The WRX sits on 17 inch wheels, has a reverse camera and extensive trip computer. For an extra $5000 the Premium model comes with full leather upholstery, Harman Kardon sound system, satellite navigation, sunroof, auto sensing wipers, power driver’s seat, dusk sensing headlights, keyless entry and push button start.

Price: from $48,990. www.subaru.co.nz

Take to the hills unseen CFMOTO NZ has released its CF500 quad in cam-

ouflage.

Popular with hunters, campers and conservationists, the camo scheme is a more military style pattern for the ATV. It also features an easy to clean and maintain matt surface to avoid reflection.

Other standard features of the CFMoto ATV are: watercooled, Mikuni carburetor, 6-ply tyres, 1 & 7/8” tow ball (standard), 1500 lb winch, digital dash plus hour meter, steel racks and nudge bar, highway quality lighting, 2 year / 15,000km warranty, parts and labour.

Also available in red, blue and silver. $7250 ex GST. www.cfmoto.co.nz

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